HomeMy WebLinkAboutTR-68-90
TOWN OF NEWCASTLE
REPORT
(2
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Res. H
By-Law H
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DATE:
fUffiT #:
SUR.ECT :
GENERAL PURPOSE & ADMINISTRATION COMMITTEE
July 23, 1990
TR-68-90
FILE #:
EMPLOYEE PURCHASE PROGRAM - MICRO COMPUTER EQUIPMENT.
RECOMMENDATIONS:
It is respectfully recommended that the General Purpose and
Administration Committee recommend to Council the following:
1. That report TR-68-90 be received;
2. That the proposal to continue the employee purchase
program for microcomputer equipment on an annual basis
for an estimated range amount of $20,000 - $30,000 be
approved; and
3. That the funds required be drawn from the Working Funds
Reserve Account (2900-00001-0000) to be repaid by
December 31, 1991 through an employee payroll deduction
program during the current term of council.
BACKGROUND & COMMENTS:
In 1989 the Town first began widespread use of microcomputers in
all departments. In conjunction with this process council
approved an Employee Microcomputer Purchase Plan (as per attached
report TR-64-89) to assist in the implementation and staff
training. This program has proved itself to be very beneficial
and cost effective in the. areas of:
. . .2
720
TR-68-90 Page 2
o reducing training costs and time.
o increasing staff knowledge and innovation.
o providing better and faster public service.
o greatly improving efficiency and accuracy of information
and speed of reporting.
As the municipality continues to grow and automate, this type of
ongoing program will prove to be very strategic.
The attached Microcomputer Purchase Agreement (Schedule A), outlines
the details of the plan. This contract would provide for a repayment
schedule, define the terms and obligations of the employee and the
Town. The Equipment Specification (Schedule B) provides the cost for
the equipment. The anticipated average cost being approximately $3000
for a complete system and printer.
In conclusion, the staff have considered the program carefully and
have found that the employees that participated in the program last
time have experienced a noticeable improvement in their ability to use
the microcomputers. These results will become increasingly important
as we implement more new software packages on the corporate network.
To continue this program annually it will help make the Town's staff
among the most computer literate in the industry which will be
followed by very tangible results.
Respectfully submitted,
Recommended for presentation
to the Committee,
~ano,
Treasurer.
H. BSc . ,
Officer.
MAM/TP/ges
Attachments
721
THE CORPORATION OF THE TOWN OF NEWCASTLE
EMPLOYEE MICROCOMPUTER PURCHASE PLAN
General Terms and Conditions
Purpose
The Employee Micro-Computer Purchase Plan was proposed to allow
employees to purchase micro-computers at a volume discounted
price and provide an interest free loan for the purchase of the
equipment to be repaid through a payroll deduction.
Eliqibility
The plan will be available to full-time Town of Newcastle
Employees and Town Council. Part-time Employees will be able to
take advantage of the Town's discounts but not the financing.
Limits per employee
The offer applies to employees including those who purchased
previously and wish to upgrade or purchase one additional system.
The Town will provide interest free financing on a maximum
principal amount of $3500.
Delivery and Title
All equipment will be picked up by employees at the vendors
location. Computerland will provide home delivery installation
and basic hardware training at an additional cost. (Employee
Purchase Plan Care Package - see Schedule B).
Title to the equipment will be given to the participant upon
delivery. Participants must complete the Employee Purchase
Agreement and the appropriate payroll forms for payment through
payroll deduction. (Schedule C)
Taxable Benefit
The interest costs absorbed by the Town will appear as a taxable
benefit on each participant's pay cheque and T-4 slips.
Software:
A library of standard software packages used with the Town will
be maintained by Computer Services staff, with software available
on an over-night or weekend basis to participants.
Participants may purchase software packages with the group
purchase to take advantage of volume/corporate discounts.
722
Page 2
Each participant will acknowledge that some software available
under this plan, purchased or on loan, is protected by Copyright
laws and may not be copied.
Accessories
Accessories such as tables, chairs, desks, printer stands,
lights, etc. are not eligible to be purchased through the plan.
Education and Traininq
Computerland will provide only limited "set up" and installation
for the hardware and software offerings. Computerland can
provide additional training and support at an additional cost as
outlined in Schedule B.
Each participant in the plan is encouraged to further their own
education regarding micro computers by taking appropriate
training courses offered by the Community College, Boards of
Education, Computerland and other private groups.
The Town encourages the formation of user groups among Town
employees to discuss and resolve common problems.
Chanqes after equipment delivered
Once the equipment has been delivered, employees wishing to
change or add to their system must do so independently from the
Town at their own expense.
pavment options
Participants may choose one of the following payment options:
1. Full payment at time of delivery.
2. Total cost to be paid through payroll deduction over 17
months.
3. Partial payment at time of purchase, balance paid
through payroll deduction over 17 months.
If a participant terminates employment or is terminated by the
Town, the outstanding principal will be deducted from his/her
final pay with any remainder payable by cheque before the last
day of work.
7 r 7
i i! J
Page 3
Hardware
The only hardware eligible for financing is the equipment
specified in Schedule B from Computerland.
The cost of maintenance and/or repairs will be the sole
responsibility of the participant - not the Town. In the event
of breakdowns, the participants must transport their equipment to
and from the service locations.
All equipment will carry a minimum of one year parts and labour
warranty. It should be stressed that employees wishing to
purchase further maintenance contracts must do so at their own
expense independently from the employee purchase plan.
The attached Schedule B provides pricing on systems, components
and typical configurations and options.
724
TOWN OF NEWCASTLE
EMPLOYEE MICRO-COMPUTER PURCHASE PLAN
EQUIPMENT SPECIFICATION (SCHEDULE B)
panasonic FX-1800
1 MB Ram 1x1.44 3.5 FD
VGA, Ser/Par DOS 3.3
Pretest & Config.
Panasonic FX1800
1 MB Ram 1x1.44 3.5 FD
.40 MB HD VGA Serjpar
DOS 3.3 Pretest & Config.
Panasonic FX1925
1 MB Ram 1x1.44 3.5 FD
VGA Serjpar DOS 3.3
Pretest & Config.
panasonic FX1925
1 MB Ram 1x1.44 3.5 FD
40 MB HD VGA Serjpar
DOS 3.3 Pretest & Config.
panasonic VGA Mono Screen
Panasonic VGA. Colour Screen
Second 1.44 3.5 FD
Second 1.2 5.25 FD
Microsoft Mouse
Serial wjpaint brush
Microsoft Works
panasonic 1180 incl. cable
panasonic 1124 incl. cable
panasonic 1695 incl. cable
Employee Purchase Plan
Care Package incl.
90 Day Telecare
Install System
unit
PST Incl.
$ 1634.00
$ 1764.72
$ 2319.00
$ 2504.52
$ 2030.00
$ 2192.40
$ 2715.00 $ 2932.20
$ 245.00 $ 264.60
$ 660.00 $ 712.80
$ 137.00 $ 147.96
$ 138.00 $ 149.04
$ 134.00 $ 144.72
$ 130.00 $ 140.40
$ 277.00 $ 299.16
$ 461. 00 $ 497.88
$ 638.00 $ 689.04
$ 319.00
$ 344.52
7- 2.... f-
~J
TOWN OF NEWCASTLE
PAGE 2
EMPLOYEE MICRO-COMPUTER PURCHASE PLAN
EQUIPMENT SPECIFICATION (SCHEDULE B)
Computer land does not accept monitors for trade-in unless there is
a CPU attached. The same rule applies to printers.
Trade-in Values
Amdek system 8088
640K Ram 2x360 FD
VGA CD Serjpar.
$ 300.00
Amdek system 8088
640K Ram 1x360 FD
30 MB HD VGA CD
Serjpar.
$ 400.00
Amdek 286A
1 MB Ram 1x1.2 FD
VGA CD 40 MB HD
Serjpar.
Amdek 410W Monitor
Amdek 732 Colour
$ 873.00
$ 125.00
$ 350.00
726
TOWN OF NEWCASTLE
REPORT
File #
Res. #
8y-law if
fffT If{]:
DATE:
fUffiT #:
SUB..ECT :
GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
JULY 3, 1989
TR-64~89
FILE #:
m-tPLOYEE PURCHASE PROGRAM - MICROCOMPUTER EQqIPMENT .
(Compliterland Canada Inc. Proposal)
RECOMMENDATIONS:
It is respectfully recommended that the General purpose and Administration
Committee recommend to council the following:
1. That report TR-64-89 be received; and
2. That the proposal.to initiate an employee microcomputer.
purchase program to provide hardware and software: in: the
estimated amount of $80,000. be'approved; and" .
" '
3. That the funds required be drawn from the Working "Funds Reserve"
Account" (i2900-0000l-0000) to be repaid through a 28 mqnth
employee payrqll deduction program commencing"' Sept~r "1, 1989
and ending Deceinber 31, 1991. .
BACKGROUND AND COMMENTS
with the ever increasing use of comput~rs in the Workplace most of the
cost and responsibility of training employees in the use of computers
has been placed on the employer. The immense costs of training are most
noticeable in periods of growth or when new computer enharicements are
" "
are added. Unfortunately the Town is not an exception. .With the increased
staff and addition of new systems, the administration is left with the
task of training and retraining the employees in the latest technologies.
727
-- Page 2
TR-64-89
El1PLOYEE PURCHASE PROGRAM - MICROCOMPUTER EQUIPMENT
In recent years many progressive private and public corporations have
reacted to thi~ situation by introducing employee purchase programs for
microcomputers.
These programs expand the skill base of a company's employees without the
company bearing the full load of training~ Because the employees see the
program as the "company helping them to advance themselves, the program
builds" motivation. Also, as employees grow more comfortable with their
computer systems," they become mo~e productive and innovative. Employees
see this program as an easy" way ""to gain access to a co~uter for the
education of the who~e fami,ly. It" is ".a "benefit "of highly perceived value
at minimal cost to the org~ization."
At this point -in" time this type """of };>r~ramwou1d be exceptionally valuable
to the TOwn; give~ the current proposal for instal~ation of a personal
computer network.
The group purchase in cOnjUnction with the TOwn's purchase from
"Computer1a:nd would allow the TOwn"'"s' discoUnts" to be applied" to an
employee purchase program. This WOUld"p~ovide the "employees with similar
equipment to themutualbenefit.ofboth the TOwn and sta~f.
. a
For councils information~attachedis an article from Background, a
Ministry of MuniciPal Affairs publication (Attac~nt A). It discusses
a very successful program that was "put in place"~y the City" of
peterborough. They were able to provide us witb the details of their
program to. assist in the preparation of the attached Microcomputer
purchase Agreement (Attachment B). This contract would" provide for a
repayment schedule and define the terms and obligations of the employee
and the municipality.
728
Page 3 --
TR-(,i--89
EMPLOYEE PURCHASE PROGRAM - MICROCOMPUTER EQUIPMENT
The expense of this program is minimal when compared to the cost of
training. To emphasize this point, the approximate cost per employee for
the duration of the program would be equal to the cost of providing one
two-day training seminar. These amounts are based on the Town's cost of
carrying the employee's interest free loan compared to the cost of the
seminar and the unproductive time spent by an employee attending the
course. The interest costs to the Town would be more than offset. over
the two year period by the direct reduction of long term training costs~
The s~aff have considered the merits of this program carefully and are-
certain,the benefits will greatly exceed the costs.
If'approVed, the available options would be presented to staff and council.
membets. It is anticipated that the average unit, consisting of a. -PC -and
printer., would cost approximately $2,200. This would equate to
approximately $40.00 per pay by the employee. With no anticipated delays
- .
these units.woul~ be ~vailable by September l, 1989. The equil?ment becomes
property of the employee but there will be a signed agreement authOrizing
the Town. to deduct any amounts owing upon resignation or termination of
an empic;)yee..
Respectfully submitted,
Recommended for presentatio~
to the aommittee
Lawrence E. Kotseff
Chief Administrative Officer
H.B.Se.
MAM/TP/ges
729
The national unemployment rate fell 0.\ per-
centage point to 7.5 per cent in Marcil.
Seasonally-adjusted employment in Canada
increased by 25,000 in March.
Economic Conditions - Consumer Prices
The Ontario CPI inflation rate was 5.9 per
cent in March, compared to 5.8 per cent in
February. Between February and March, .the
index increased by 0.5 per cent in both On-
tario and Canada.
The Canadian CPI inflation rate was 4.6 per
cent in March, unchanged from the rate
recorded in February.
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..;..... . ........,. .....,. ....... ....... ", -...,'
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PC's at. Home - Compute~ Skills With Lower
Training Costs.
Almost everyone agrees' .that learning a new
skill.is easier if you can have fun while doing it-
especially in the comfort of your own home. The
City of Peter borough has capitalized on.this idea
with their Employee Personal Computer Pur- .
chase Plan. By allowing employees to purchase
PC's through the city, costs for staff computer
training were significantly reduced and compu ter.
skills were acquired more quickly. All because
employees learned the 'ropes' at home; on their
own time.
In approving the Employee Personal Com-
puter Purchase Plan in late 1987, Peterborough
City Council reaffirmed its commitment to staff
training and development. It viewed the plan as
an alternative training method that would not
only be cost effective, but would make learning
much easier. After the plan was approved, the
Finance and Administrative Services Depart-
ment selected a vendor which provided the best
combination of price, quality and after sales ser-
vice. By July 1988, city employees were hacking
on their new PC's at home,
. 730
ATTACHMENT A
The dctaib of the plan are straightforward.
Employees were given the opportunity to buy a
PC through the city a~d pay for it over a one, two
or three-year period w'ithout any in~erest char-
ges. The city is willing to pay the interest becallse
in the long run, the charges are actually less than
the money usually spent on training. Employees
had the option of purchasing their PC's through
payroll deduction or by paying the total purchase
price up front. Participating employees also paid
a $100 non-refundable enrollment fee to help
offset interest charges and administrative costs.
The plan's only condition was that all equipment
purchases had to be compatible with the citY-s
own computer systems.
Of the city's 650 employees, eighty-five pur-
chased a PC through the plan. On~ member of
council also participated. So far~ the plan has
. yielded' ~normousbenefits for everyone in-
volved. The city. reduced sWf training costs and
the time avlay from work that employees normal-
ly. need to ..undergo training.. In. addition,
employee computer skills dev~loped in a much
s~orter time. resulting hi improveQ job perfor-
mance.
For their part, employees were able take ad-
vantage of reduced cOmputer prices made pos-
sible by the city's volume purchase. And
although not all employees that purchased
through the plan actually use a computer on the
job, their overall: level of knowledge has been
enhanced by their new computer skills. The city
believes that those kinds of peisonal improve-
ments play an important part in.employee morale
and well-being.
Although the city has no plans for another
employee PC purchase in the near future, it in-
tends to review staff turnover in the coming years
and will put the plan into action again if employee
interest is high. Judging by the success of the
city's first PC venture, the chances are good
they'll be doing just that.
For more information on the City .of
Peterborough's Employee Personal Computer
purchase Plan, please contact Brian Horton,
Manager of Financial Services, Financial and
Administrati.ve Services Department, City of
PUJ!e J
THE CORPORATION OF THE TOWN OF NEWCASTLE
EMPLOYEE MICROCOMPUTER PURCHASE PLAN
General Terms and Conditions
purpose
The Employee Micro-oomputer Purchase Plan was proposed to allow employees
to purchase micro-computers at a volume discounted price and provide an
interest free loan for the purchase of the equipment to be repaid through
a payroll deduction.
Eligibility
The plan will be available to full-time TOwn of Newcastle Employees and
TOwn COUncil. Part-time Employees will be able to take advantage of the
TOwn's discounts but not ~he financing.
Limits per employee
participants are-limited to the purchase of one single system and the
TOwn will provide financing up. to a maximum of $2200 per employee.
Delivery and .Title
All equipment will be picked up by employees at the. venqors location.
Computerland will-provide home deliverY installation and basic hardware
training at an additional cost. (Employee purchase plan care package .:.
see Schedule A)~ .
Title to the equipment will .be given to the participant upon delivery.
.participants must complete the EmPloyee purchase Agreement and the
appropriate payroll -forms for payment through payroll deduction..
(Schedule C).
Taxable Benefit
The interest costs absorbed by the TOwn will appear as a taxable benefit
on each participant's pay. cheque and T~4 slips.
Software:
A library of standard software packages used with the TOwn will be
maintained by Computer Services staff, with software available on an
over-night or weekend basis to participants.
Participants may purchase software packages with the group purchase
to take advantage of volume/corporate discounts.
Each participant will acknowledge that some software available under
this plan; purchased or on loan, is protected by Copyright laws and may
not be copied.
771
,J
(page 2)
Accessories
Accessories such as. tables, chairs, desks, printer stands, lights, e~c.
are not eligible to be purchased through the plan. .
Education and Training
Computerland will provide only limited "set up" and installation for the
hardware and software offerings. computerland can provide..adgitional
training and support at an addtional cost as outlined in Sched~le A. .
Each participant in the. plan is encouraged to further their own
education regarding micro computers by taking appropriate training
cOurses offered by the community COllege, Boards of Education,
Computerland and other private groups.
The Town encourages the formation of user groups among Town employees
to discuss and resolve common problems.
Changes after equipment delivered
. Once .the equipment has been delivered, employees wishing to change or
. .. add to their system must do so independently from the Town at their own.
expense.
payment options .
partici~nts may choose .one.of the following payment options:
1. . Full payment at time of delivery.
2. To.ta1 cost to pe paid through payroll deduction.. over 28,.
months. .
3. Partial payment at time o~ purchase, balance paid througo.
payroll deduction over 28 months.
. If a participant terminates employment oris terminated by the. Town, .
theoutstand~ng princ~pal will be deducted from his/her final pay with
any remainder payable. by cheque before the last day of work ~ . . ..
Hardware
The only hardware eligible for financing is the equipment specified
in Schedule A.
The cost of maintenance and/or repairs will be the sole responsibility
of the participant - not the Town. In the event of breakdowns, the
participants must transport their equipment to and from the service
location.
7.32
(Page 3)
All equipment will carry a minimum of one year parts and labour warranty.
It should be stressed that employees wishing to purchase further
maintenance contracts must do so at their own expense independently from
the employee purchase plan.
Upgrades to hardware and software, after the initial delivery, are the
sole responsibility of the individual participant.
The attached Schedule A provides pricing on systems, components and
typical configurations and options.
733