HomeMy WebLinkAboutTR-18-96 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
REPORT
Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE File#
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Date: MONDAY, APRIL 1, 1996 Res. #
By-Law#
Report#: TR-18-9 6 File #:
Subject: PROPOSED PHOTOCOPIER LEASE - PLANNING DEPARTMENT
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Recommendations:
It is respectfully recommended that the General Purpose and
Administration Committee recommend to Council the following:
1 . THAT Report TR-18-96 be received;
2 . THAT Council accept the written proposal (Schedule "A" ) from
0.E. Oshawa Inc . , Oshawa, Ontario (0.E. Leasing Inc . ) to lease
one (1) Canon Model NP6050 Photocopier with 20 bin sorter, at
a monthly cost of $422 . 17 per month plu's taxes, for a period
of thirty-six (36) months with a buy out option of 15% at the
thirty-sixth (36) month;
3 . THAT the procedures set out in the Purchasing By-law ##94-129,
Section 5, Paragraph 04, be waived for this particular
transaction;
4 . THAT the attached By-law (Schedule "B") authorizing the Mayor
and Clerk to execute the agreement be approved; and
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5 . THAT the funds be drawn from the Unclassified Administration
Account ##7607-00000-0520, other Capital Leases for which lease
payments are budgeted for.
BACKGROUND AND COMMENT
In October 1991, the Municipality entered into a lease agreement
with O.E. Oshawa Inc . for a Canon photocopier Model NP8530 . The
terms of the agreement provided for a 48 month term with a 150 (of
the original purchase value) buy out upon expiry. This lease has
now expired and the buy out price will be approximately $4, 425 . 00,
plus taxes .
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PAPER RECYCLE 7
THESIS PRIt-ON RECYCLED PAPER
REPORT NO. : TR-18-96 PAGE 2
PROPOSED PHOTOCOPIER LEASE,
PLANNING DEPARTMENT
Due to increased day to day use of the copier, the mechanical
breakdowns in the past year have been excessive . Also over the
four (4) year period there have been many technological changes to
the Canon photocopiers that make the new models much more
efficient . It is therefore the opinion of staff, that the buy out
of the existing copier is not conducive to the copying needs of the
department .
As the existing agreement is with O.E . Oshawa Inc . , it is in the
Municipality' s best interest to return the copier to them and enter
into a new agreement . This is also consistent with the practice of
the past few years in the standardizing of photocopiers . It is
therefore recommended that the Purchasing By-law #94-129, Section
5, Paragraph 04, be waived for this particular transaction.
The outright purchase versus leasing comparison is as follows :
Outright Purchase $ 13 , 640 . 00 + taxes
Lease $ 422 . 17
x 36 month term
$ 15, 198 . 12 + service costs + taxes .
It is also important to note, that because the new model copier is
much more efficient, O.E . Oshawa Inc . are able to reduce the cost
of servicing from . 008 cents per copy to . 0064 cents per copy. The
price of service from their competitors ranges from . 01 to . 02
cents per copy depending on the size of the machine and the volume .
In addition, the total annual funds required for the lease of the
new copier are $5, 066 . 04 + taxes, versus an annual requirement of
$10 , 186 . 20 + taxes for the existing unit .
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REPORT NO. : TR-18-96 PAGE 3
PROPOSED PHOTOCOPIER LEASE,
PLANNING DEPARTMENT
A lease agreement rather than an outright purchase is proposed for
the following reasons :
a) should it become evident that the photocopier no longer
meets the needs of the user, alternative equipment can be
negotiated and a new lease agreement entered into, in
most cases with no penalty to break the existing lease;
b) warranty guaranteed for term of lease including
replacement for non-serviceability; and
c) capital expenditure not required, free funds for other
purposes .
The proposed copier has been used by the Planning Department staff
on a trial basis for the past two (2) weeks, and they have advised
that they are pleased with its performance.
The necessary funds have been provided for in the 1996 Current
Budget, Unclassified Administration Account #7007-00000-0520 . The
Treasurer has reviewed the funding requirements and concurs with
the recommendation. Queries with respect to department needs,
specification, etc . , should be referred to the Director of
Planning.
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For the information of Council, the lease agreements for the j
photocopiers in the Treasury Department and the Community
Services/Public Works Department have both expired. However, as
the buy out on both of these copiers was $1 . 00 , the buy out option
has been exercised. As both of these copiers have also required
excessive repairs over the past year, it is recommended that they
be upgraded and that the existing copiers be used as a trade in.
Once the 1996 budgets have been approved, a Request for Proposal
will be issued to several suppliers with a report forthcoming
requesting Council approval for an award.
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REPORT NO. : TR-18-96 PAGE 4
PROPOSED PHOTOCOPIER LEASE,
PLANNING DEPARTMENT
After further review and analysis of the proposal, it was mutually
agreed by the Director of Planning and the Purchasing Manager that
the proposal from O.E. Oshawa Inc . , Oshawa, Ontario (O.E. Leasing)
for the Canon Model NP6050 be recommended for acceptance .
Respectfully submitted, Reviewed by,
loltv^
a arano, H.BSc . ,AMCT. , W.H. Stockwell,
Treasurer Chief Administrative Officer
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Franklin Wu. , M. C. I . P .
Director of Planning
MM*LB*ld
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SCHEDULE "A"
CV. L LEASE CONTRACT NUMBER:
�'�'���� T SAI.I;S RE''
AGREEMENT A Division of OE Financial Services Inc. 1
TERRITORY
CUSTOMER
NAME
BILLING — --
ADDRESS
CITY AND –
PROVINCE ) /> 3 i POSTAL
CUSTOMER PERSON TO CONT�('T ) / TELEPHONE NUMBER FAX NUMBER
CONTACT /C��(
BANK NAME OF BANK OR FINANCIAL INSTI'T'U'T'ION
INFORMATION
BRANCH LOCATION ACCOUNT NUi\9BER –
EQUIPMENT QUANTITY DESCRIPTION(N,I;Ikc,Model,Serial Numbcr;md Description)
DESCRIPTION
INSURANCE Unless Customer waives this insurance option by Signing below,C'uslontcr hereby requests and authorizes Lessor to obtain replacement value insurance covenme lox
OPTION or damage to the Eynipment.Such insurance shall be placed wish an insurance company of Lessor's choice and Customer will receive an insurance rcttilicate omhnme
the coverage in effect.Customer acknowledges that the periodic rental amount appearing below will be increased by 3%(minimum$5.00 increase)during the Icrm ltat
such coverage is in effect.
INSURANCE WAIVER:Customer hereby waives the above insurance option and agrees to obtain independent coverage al its own expense,in accordance wilt the
Equipment Risk and Insurance section on the reverie side,adding Lessor as an additional insured and showing I.cssor ns it cu-loss payee,and further agrees to pan idc
Lessor with evidence of such coverage within 30 clays from the commencement of Ittc Agreement and at:uty other lime upon request.
Insurance option waived by: I'itle(sl _
RENTAL TERM BILLING FREQUENCY NUMBER OI'RENTAL PERIODS
DETAILS RENTAL A\10UN'I'
I0.1\46nthly ❑Quarterly
`'? ❑Semi Annual ❑Annuall y
plus applic;thlc'r;tCC.
BILLING If above Rental Amount is less Ihan$150.00.Customer herehy acknowledges that a$5.00 surcharge will be added to each Rental to cover Lessor's billing uttd handling
SURCHARGE expenses.Customer may avoid this billing surcharge by congileting the Pre-Authorized Payment I'l:ut scclion below.
PRE- Lessor is hereby authorized to periodically draw payment under its Pre-Authorized Payment Plan lions the bank account specified in the Bank Information scclion
AUTHORIZED above and/or as outlined on the allached s;unple cheque to cover Ile Rental and other amounts due under Ihis Agreement.
PAYMENT
PLAN
Authorized Cheque Signer(s): Title(s) _
PLEASE.ATTACII AN UNSIGNED
CUSTOMER ACKNOWLEDGES HAVING READ THE TERMS AND CONDITIONS OE THIS AGRE'EMEN'T'WHICH ARE SETT FORTH ON THIS PAGE AND ON THE'
REVERSE SIDE,
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FOR OFFICE USE ONLY CUSTOMER �fiJ/�' 1 -/ J
(Legal Name).........
✓•' /:
EXECUTED AS LESSOR:
......................................................................................................................................
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' ,EASING,division of OE Financial Services Inc. The undersigned affirms Thal he/she is duly authorized to execute this Agreement.
P.O.Box 5027.4145 North Service Road,#401,Burlington,Onlario L7R 3Y8
GST Regisa;uion No.136454014 Ir
13Y:............................................................................................................. TITLE................................... I'
Authorized Signature N
A'
By: .................................................................................................................................... 11 Y:...........................
1.
In uorizcd Signauuc .........................................................
1'I"1'l.l
........................ .........
—�-_ Authorized Signature / 0 G
01:100112193 5
SCHEDULE "B"
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
BY-LAW NUMBER 96-
Being a By-law to authorize the execution of a
Lease Agreement with O.E. Oshawa Inc . (0.E.
Leasing Inc . ) , Oshawa, Ontario
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON HEREBY ENACTS AS
FOLLOWS :
1 . THAT the Mayor and Clerk are hereby authorized to execute on
behalf of the Corporation of the Municipality of Clarington,
and seal with the Corporation Seal, a Lease Agreement between
O.E. Oshawa Inc . (O.E. Leasing Inc . ) , Oshawa, Ontario, and
said Corporation, which is attached hereto and marked Schedule
"A"
By-law read a first and second time this day of March, 1996 .
By-law read a third time and finally passed this day of March,
1996 .
Mayor
Clerk
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