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Home My WebLink AboutTR-72-95 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON REPORT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE File # Lk+. Date: MONDAY, OCTOBER 23 , 1995 Res. #(11 So -9`5 , By-Law# Report#: TR-72-95 File#: Subject: PROPOSED PHOTOCOPIER LEASE - FIRE DEPARTMENT Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1 . THAT Report TR-72-95 be received; 2 . THAT Council accept the written proposal (Schedule "All) from Executive Copier Systems, Ajax, Ontario, (Sharp Electronics of Canada Ltd. ) to lease one (1) only Sharp Model SF2022 with twenty (20) bin sorter, at a monthly cost of $235 . 28 plus taxes, for a period of thirty-six (36) months with a buyout option of 10% at the thirty-sixth (36th) 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 "Bit ) authorizing the Mayor and Clerk to execute the Agreement be approved; and 5 . THAT the funds be drawn from the Unclassified Administration Account #7607-00000-0520, other Capital Leases for which lease payments were budgeted for. BACKGROUND AND COMMENT For the past several years, the Fire Department has been operating with a Gestetner Model 2325ZD. This machine is basically worn out and requires repairs that are in excess of its current market value . Subsequently, an informal quotation request outlining the photocopier requirements of the Fire Department was prepared and proposals were invited from six (6) different suppliers . Quotations were received and tabulated as per Schedule licit . PPE 713 I Ii ISIS'4111TE-4 BE GYC LED Pd PE q REPORT NO. : TR-72-95 PAGE 2 PROPOSED PHOTOCOPIER LEASE - FIRE DEPARTMENT The quotations received were reviewed by both the Purchasing Manager and the Confidential Secretary for the Fire Department, and the overall monthly cost (monthly lease cost plus approximate service cost plus approximate toner usage) was calculated. i Based on the overall monthly cost, the Sharp Model SF2022 with 20 bin sorter was brought in on a one (1) week trial basis . The Fire Department have advised that this machine has been outstanding. For the past couple of years, it has been the Municipality of Clarington practice to try and standardize on office equipment . With respect to photocopiers, this has usually mean the acquisition of a Canon product . However, due to the fact that in this case the user Department is removed from the Municipal Administrative Centre as well as the fact that the Canon product is substantially more expensive, it was felt that the equipment offered by Executive Copier would adequately meet the needs of the Fire Department . For the information of Council, the outright purchase versus leasing comparison is as follows : Outright Purchase $7, 590 . 00 less trade-in of $300 . 00 on Gestetner Model 2325ZD = $7, 290 . 00 + taxes Lease $ 235 . 28 x 36 month term $8, 470 . 08 + Service Costs + taxes A lease agreement is proposed for the following reasons : a) Should it become evident that the photocopier no longer meets I the needs of the user, alternate equipment can be negotiated and a new lease agreement entered into, in most cases with no penalty to break the existing lease . b) Capital expenditure not required, frees funds for other purposes . i I i ? 14 REPORT NO. : TR-72-95 PAGE 3 PROPOSED PHOTOCOPIER LEASE - FIRE DEPARTMENT Funds in the amount of $3 , 000 . 00 for the leasing of a photocopier were included for the Fire Department' s photocopier in the 1995 Unclassified Administration Account #7007-00000-0520 Other Capital Leases . The Treasurer has reviewed the funding requirements and concurs with the recommendation. Queries with respect to department needs, specifications, etc . , should be referred to the Fire Chief . After further review and analysis of the proposals, it was mutually i I agreed by the Fire Chief and the Purchasing Manager that the proposal from Executive Copier Systems, Ajax, Ontario, for the Sharp Model SF2022 with twenty (20) bin sorter be recommended for acceptance . Respectfully submitted, Review y, i Mare Marano, H.BSc . ,AMCT. , WAO Stockwell, T asurer Chief Administrative Officer I M. Creighton Fire Chief MM*LB*ld it f i I i I 715 SCHEDULE "A" RENTAL SERVICE AGREEMENT SH^ � coNTRncr NUMBER: MUNICIPALITY OF CLARINGTON Temperance Street �� `��'�'�`��< BOwmanville, Ontario cooB L1C 3A6 :�>..IIST.OM�Rf:�:::��:;; PBRSONTOCOAiI'ACT TELP�'f{ONIINUMBBR �B.A'NK?:;<: ?:; s?i ;i:i NAME OP BANK OR FINANCIAL INSTI 13TION INFORM*A:TI�?N . BRANCH LOCATION ACCOUNT NUMBPR ')( NAME SALS REP EXECUTIVE COPIER SYSTEMS I N C. Gr Bu aeme ADDRESS rriS 5-520 0 W es t TERRITORY ne Road South,Y ad Ajax Ont L1S 6W4 QUANTITY DP-SCRU 71ON(Make,ModeludDsariptim) . �?TkS GI2I P:1TON 1 SHARP C OPIE , R M 1 �/n 50522885 522 885 SHARP SF-A 5 4 R e v er si n g Auto Document er 1 SHARP SF-DM11 Du lex s n 50415676 1 _ SHARP SF-D20 500 Sheet drawer with stand s n 50604506 1 SHARP SF- S15 20 Bin Sorter s n 50510931 , b: t !. IIILL[NG FRE UENt Y Q RENTAL AMO[]NT COPICS INCI UDED '`0 SA`GE<;>4: `> MONTHLY �,, Year.I--nz� cents .. ❑ QUARTERLY Year•2 n/a cents 36 S 2 3 5. 2 8 n/a Year.3 eent4 t months Number or Rental Periods cr Rental Period topics P Included In Rental Amount Year.4_r1/a cents yea-r-5 n Za cents and over COPY ALL AMOUNTS ARE SUBJECT TO APPLICABLE TAXES CUSTOMER ACKNOWLEDGES HAVING READ TIIF TERMS AND CONDITIONS OF THIS AGREEMENT WHICH ARE SET FORTH ON THIS PAGE AND ON THE REVERSE SIDE. ]FOR orrlcE usE ONLY CUSTOMER (Legal Name)..........MUN.Z.��.Z I'.A t. . .X....QF.....C.L,l-.1.R INGT.ON......,..•............... EXECUTED AS LESSOR: ..............................................................................................ec'u'...........•..........cnt................................... SITAR P ELECTRONICS OF CANADA LTD, The undersigned alRmts that he/she is duly authorised to execute this Agrecmem, BY: .......................................................................................................:rIT LE........................•..........., Authorized Signature BY: .................................. ................................................................................ Authorized Signature I{Y: ..................... .....................................TITLE......................... Authorized Signature ••••°°•• ----- ----- ---- MS058-02/93 716 SCHEDULE "B" THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW NUMBER 95- Being a By-law to authorize the execution of a Lease Agreement with Executive Copier Systems, Ajax; Ontario (Sharp Electronics of Canada Ltd. ) i i 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 Executive Copier Systems (Sharp Electronics of Canada Ltd. ) and said Corporation, which is attached hereto and marked Schedule "A" . By-law read a first and second time this day of October, 1995 . By-law read a third time and finally passed this day of October, 1995 . Mayor Clerk I i I 718 SCHEDULE"C" C� BID SUMMARY f PHOTOCOPIER PROPOSALS FIRE STATION #1 Bidder Purchase Lease Month Copies Maint. Total Monthly Total 36 Month Comments Price (36 Months- per Cost per Cost (Lease + Cost (Lease + Incl. Trade-in) Minute copy Maint + Toner) Maint + Toner) Executive Copier Systems $6,995.00 $235.28 (216.00 22 .0165 $290.25 $10,449.00 -optional 20 bin sorter $595.00 + $800.00 Ajax, Ontario + 19.28/month (inc. toner) for stapler sorter) -1000 sheet paper deck$295.00 Telecopy Systems $7,465.00 $281.90 25 .014 $344.90 $10,904.40 -2 yrs or fixed 108,000 copies incl. at n/c Oshawa, Ontario (inc. toner) -10 bin sorter quoted as optional- inc. in total monthly cost as shown (savings 1,512 total) -optional 20 bin sorter$2,945.00 -1000 sheet paper deck 1,843.00 Cooks Office Equipment $6,900.00 $228.07 25 .017 $304.57 $10,964.52 -optional 20 bin sorter with stapler$2,300.00 Oshawa, Ontario (inc. toner) -2500 sheet paper deck included Avis Office Equipment $9,039.00 $275.40 26 .02 $365.40 $13,154.40 -optional 20 bin sorter 1,895.00 Whitby, Ontario (inc. toner) -1000 sheet paper deck 795.00 Office Equipment $9,609.00 $311.57 25 .008 $381.77 $13,743.72 -optional 20 bin sorter 1,355.00 Oshawa, Ontario (60.80/box -1000 sheet paper deck 980.00 toner) DN:FDCOPIER.RES