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HomeMy WebLinkAboutTR-52-95 I THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON REPORT Meeti&NERAL PURPOSE AND ADMINISTRATION COMMITTEE File## Date: July 10, 1995 By-Law# Report#: File#: TR-52-95 Subject: EMPLOYEE PURCHASE PLAN FOR COMPUTERS Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend i to Council the following: 1. THAT Report TR-52-95 be received, 2. THAT Council endorse future employee purchase plans on the basis of payment to the employee's choice of vendor, and 3. THAT the interested parties listed at the end of Report TR-52-95 be notified of Council's decision. Background: 1.0 The Municipality of Clarington determined the direction of it's computer network system in 1989 when it originally tendered for computer needs and subsequent awarded based on comparative prices from reputable and established bidders who were in the market and able to provide the municipality with the local area network and mainframe requirements. Once that determination was made, the extension to the network has been based on maintaining the integrity and consistency of that system and its' maintenance and warranty contracts. As a result the question of tendering for the Municipality's computer requirements As not considered to be an issue. The company ultimately selected was able to provide consulting and programming to the very specific financial applications as well as support for the network and communications applications. With the complexity of the requirements,and the extent of service required,it is not necessarily the lowest bid that would be recommended, and this is in part the reason for waving the purchasing by-law for Municipal requirements. 1.1 In attempt to provide Staff with access to the Municipality's supplier and ensure that their purchases would be competitive, compatible and eligible for the same degree of service, the Municipality introduced the Employee Purchase Plan. i 709 RECYCLED E ER 0 ER CLE THIS IS PRRRED M RECYCLED PAPER TR-52-95 Pam 2.0 Through Report TR-32-95 Council approved the Employee Purchase Plan for the term of the current Council. This plan was originally adopted in 1989, and reintroduced in 1990 and again in 1992. It allows for the employees to purchase computers through the municipality with repayment through payroll deductions. This is an interest free loan with an associated taxable benefit reflected on the employee's T4 at the end of each year. 2.1 In 1989 and again in 1990, based on the municipality's tender bids the plan was awarded to the supplier of the Municipality's computer hardware, Computerland Inc. In 1992, price comparisons were done with quotations received from several existing and reputable suppliers. The comparisons consider level of service, warranty, product quality and value for both Municipal needs and home equipment. The staff recommendation was approved by Council and the tender was awarded to Complete Computer Consulting Incorporated. 3.0 The service level provided by this company for both Municipal and personal computer purchases has been exceptional, with very few complaints or concerns since that time, and as a result Staff feel that the municipality's interests and investments have been well protected with respect to computer requirements. 3.1 Some Staff have voluntarily come forward and explained that they have taken advantage of lower priced purchases of computer clones only to find that the cost to bring them up to a standard comparable to that offered through the Employee Purchase Plan left them spending far more than they would have under the Plan. 4.0 The employee purchase plan has proven to be strategically efficient economically and productively in that it has achieved a work force that is computer efficient primarily through learning on their own time. Savings have also been achieved through many salaried employees,,who receive no additional remuneration or overtime, working at home in evening hours when they perhaps would not have been able to conveniently stay at the office. The cost to the Municipality has been estimated to be equivalent to the cost of one related short term training course in each of the given years, however the benefits, although not monetarily measurable are considered to far outweigh the associated cost. 5.0 The participation level in each of the three terms is approximately: Year # Employees Total Cost Taxable Benefit Value 1989/90 29 $80,479.29 $11,955.89 1992 27 $60,155.25 $ 4,429.15 1995 20 $64,791.14 $ 8,000.00 *Estimated - depending on interest rates 710 TR-52-95 Page 3 6.0 Although in each of the terms of the plans,price comparisons were performed by the Systems Manager, and the recommended firm was found to be providing competitive pricing for identical equipment, it is suggested that if Council wishes to provide,that future plans allow the employee to purchase equipment within the specified limits and payment made to the specific company involved, Staff do not have any objection. This would require that individuals make their own arrangements for service, installation and warranty and will relieve the System's Manager from the responsibility and additional workloand associated with any purchases. This may however, eliminate future concerns with respect to the restriction of any vendor from participating in the plan. 6.1 A report recommending the above will be forthcoming at the appropriate time to implement the above. 7.0 The municipality has made a number of attempts to include local vendors in municipal trade opportunities,for example the Purchasing Manager and Economic Development Officer jointly setting up information sessions and coordinating the Reverse Trade Show called `Doing Business With Government' with the Oshawa and District Chamber of Commerce for September 1995. Articles have also been placed in news letters in this regard ie. `The Do's and Don'ts of Winning Competitive Bids' appearing in the spring edition of Report on Clarington. This recommendation may further advance these efforts. Respectively Submitted, Reviewed by, a ie A. Marano, H.BSc.,A.M.C.T. W.H. Stockwell, Treasurer. Chief Administrative Officer MAM/pP Interested Parties: Austin and Beverley McLuhan j Clarington Computer Clearance Centre 64 Baseline Road East Bowmanville, Ontario L1C 1A2 i Clarington Business Group Bonita Cunningham, Ron Collis, & Steve Scatterty Co-Chairs 177 Vail Meadows Cres. Bowmanville, Ontario L1C 4T4 I 711