HomeMy WebLinkAboutTR-8-92 TOWN OF NEWCASTLE
REPORT File # .rt ,; ,>
Res. #l' M L",- j {
— -=f- -�. By-Law #
MEETING: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
DATE: February 3, 1992
REPORT #: TR-8-92 FILE #:
SUB.ECT: PROPOSED PHOTOCOPIER LEASE - ADMINISTRATION
RECOMMENDATIONS:
It is respectfully recommended that the General Purpose and
Administration Committee recommend to Council the following:
1. THAT Report TR-8-92 be received;
2 . THAT Council accept the written proposal (Schedule
"A" ) , from OE Oshawa Inc . , Oshawa, Ontario, (through
Glenora Leasing) , to lease one ( 1) only Canon Model
NP3050 with ten ( 10) bin sorter at a quarterly cost of
$880 . 83 plus taxes, for a period of thirty-six (36)
months with a fifteen percent ( 15%) buyout option (of
original purchase price) , upon lease expiry;
3 . That the attached By-Law (Schedule "B" ) , authorizing
Mayor and Clerk to execute the agreement be approved;
and
4 . That the funds be included in the 1992 Unclassified
Administration Account #7007-00000-0520 .
BACKGROUND AND COMMENT:
In October 1991, Council were advised that the photocopier (Canon
Model NP500) , located in the Mayor/Administrators , office area ''
was beyond repair.
Subsequently, OE Oshawa Inc . proposed a rental lease agreement to
the Town of Newcastle for a Canon Model NP3050, with the
understanding that a lease agreement would be considered in
January 1992 (see Schedule "C" attached) .
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TR-8-92
PROPOSED PHOTOCOPIER LEASE - ADMINISTRATION
Should Council choose to enter into a lease agreement for the
equipment, the three (3) months rental payments will be credited
against the lease. However, should Council choose not to enter
into a lease agreement, the present rental will expire and no
penalties will be charged.
The operating costs of the proposed Model NP3050 is as follows:
Service $ 48 . 00
Toner $ 43. 60
Lease $293. 61 (includes trade-in of NP500)
$385.21/month
Note: The above prices do not include the Provincial Sales Tax
or the Federal Goods and Services Tax which are applicable.
The operating costs of the Canon Model NP500 are estimated at
$110 . 00 per month. This machine is currently owned by the Town
of Newcastle, however, it is considered unrepairable.
For the information of Council, the outright purchase of the new
equipment versus leasing is as follows:
Outright Purchase $ 8,009 . 00 + Service Cost + PST + GST
Lease $ 293 . 61/month ($880.83/quarter)
x 36 month term
$10,569 .96 + Service Cost + PST + GST
A thirty-six ( 36) month term lease agreement is proposed for the
following reasons:
(a) Should it become evident that the photocopier no longer
meets the needs of the user, alternate equipment can be
negotiated and a new lease entered into.
(b) A sixty-six (66) month term has become unrealistic in
that in most cases the user's needs have usually
exceeded the equipment's capabilities within thirty-
six (36) to forty-eight (48) months . This therefore
makes it very expensive to upgrade the equipment as the
outstanding term of the lease must be bought out.
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TR-8-92
PROPOSED PHOTOCOPIER LEASE - ADMINISTRATION
Note, this proposal is consistent with the previous
standardization on photocopiers within the Municipal Offices . In
comparison to other manufacturers, the Canon unit is very
competitive in price. In addition, the price of service for all
our Canon photocopiers is . 008 cents per copy regardless of the
volume, where as with all of their competitors the price various
from . 01 to . 02 cents depending on the size of the machine and
the volume.
During the rental period, the photocopier has performed
satisfactorily and it is recommended that the proposal be
accepted and that the required funds be included in the 1992
Budget in the Unclassified Administration Account
#7007-00000-0520 .
The Treasurer has reviewed the funding requirements and concurs
with the recommendation.
Respectfully submitted, Recommended for presentation
to the Committee,
Marie Marano, H.B.Sc . , AMCT. , Lawren Kotseff,
Treasurer. Chief VdVinistrative Officer.
LAB/hjl
Attachments
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711
SCHEDULE "A"
GE
O.E. Oshawa Inc.
580 King St. West
Oshawa, Ontario
L1J M
(416) 436-6363
October 4, 1991
The Corportation of the Town of Newcastle
40 Temperance Street,
Bowmanville, Ontario
L1C .3A6 -
Attention: Ms. Lou Ann Birkett
Dear Ms. Birkett,
As a follow up to our conversation, here is the information
reguarding the rental upgrade of the Canon NP500 copier in
administration.
The present volume on the Canon NP500 machine located in
Administration is approxiamately 6000 copies per month.
The present operating cost of this machine is
Service $ 48.00
Toner 62.00
Rental Now owned
$ 7,8uti + o n
Proposed Operating Costs
I
Service $ 48.00
Toner 43. 60
Lease 293.61
S 385.21
This proposal is for a new Canon NP34M with a 10 Bin sorter and
recirculating feeder. The rental is a 3 month rental with a
continuation option of 33 months following the expiration of this
rental.
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Office Equipment Company of Canada 1490 Denison Street,Markham,Ontario L3R 9T7
E inc. Cie Canadienne d'Equipement de Bureau Telephone:(416)491-9330 Fax:(416)491-9128
MONTREAL TORONTO • OTTAWA QUEBEC HAMILTON
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Pricing Breakdown
One Canon NP3050 $ 6,995.00
One Feeder 1, 710.00
One 10 Bin Sorter and Kit 1,495.00
One Cabinet 308.00
Three Cassettes incl.
Less Trade in and CMAP Pricing 2, 500.00
Total $ 8,009.00
Service: As per the The Town of Newcastle Rate for Canon Service at
.008 cents per copy.
Leasing: 36 Month Lease with a 15% purchase option after 36 monthly
payments of $293. 61. The agreement is for a 3 month rental
which can be cancelled or the lease may be continued for
the balance of 36 months.
Thank you for allowing O.E. Oshawa to quote on the copier
requirements of the Town of Newcastle.
Sincerely,
Y esLa nce
a eral Manager
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713
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THE CORPORATION OF THE TOWN OF NEWCASTLE
BY-LAW NUMBER 92-
Being a By-Law to authorize the execution
of a Lease Agreement with
O.E. Oshawa Inc. , Oshawa, Ontario
THE CORPORATION OF THE TOWN OF NEWCASTLE HEREBY ENACTS AS FOLLOWS:
1. That the Mayor and Clerk are hereby authorized to execute,
on behalf of the Corporation of the Town of Newcastle, and seal
with the Corporation Seal, a Lease Agreement between O.E. Oshawa
Inc. and said Corporation, which is attached hereto
and marked Schedule "A" .
2. That this By-Law not take effect until approved by the Ontario
Municipal Board, pursuant to Section 64( 1) of the Ontario
Municipal Board Act.
By-Law read a first and second time this day of January, 1992 .
By-Law read a third time and finally passed this day of January,
1992 .
Mayor
Clerk
7 1 Q.
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LESSOR LEASE CONTRACT
GLENORA LEASING INC.
R.R.4,Picton,Ontario KOK 2TO
(613)476-8102 Fax(613)476-8102
LESSE��
NAME ` O F /V
ADDRESS
CITY AND
p / D POSTAL CODE
PROVINCE ( J o
PERSON TO CONTACT AND TITLE TEL.NO.(Inc.Area Code) YEARS IN BUSINESS
11410 bl 23� 3?9
suPPUea Name:. ,.4�..t.......
1214il/.
`mc.....................................................................
Address:..tQ0. _;A .rY tW.:.0.. 4IAAA..................................
Bank:...................................................................................................
Sales Representat{ve:.St..........4G✓.0-614( L ..............TEL.NO:..`E` �.'.�•J•GJj .. Address:.........................................................................................
.....
LOCATION OF EQUIPMENT(if different from above)
LESSEE OWNS NAME AND ADDRESS OF LANDLORD TEL.NO:
PREMISES 0
QUANTITY EQUIPMENT DESCRIPTION(including Model and Serial No,(s))
,4A1O ld V"
Additional Provisions to the Terms and Conditions of this Lease as set out below.
Lessee may purchase equipment in month after payments for percen". ...ginalco to(equipment(fill blanks lf purchase option desired).
INITIAL TERM: NO.OF Rental Amount ov.Sa s tax S; Total Rental Payment
(No.of Months) PAYMENTS ,17 G
Please indicate Prov.Sales Tax No.Under Addiliona Pr visions—H Applicable
TERMS AND CONDITIONS OF LEASE ADDITIONAL TERMS AND CONDITIONS ON THE REVERSE SIDE HEREOF FORM A PART OF THIS LEASE
This lease shall not become binding upon Lessor until accepted In writing by Lessor as evidenced by the signature of a duly authorized officerof Lessor In the space
provided below.
SCHEDULE"A"
TERMS AND CONDITIONS
Lessor hereby leases to Lessee the personal property herein described and all accessories supplied therewith and accessories thereto,all herein called the"Equipment"
upon the terms and conditions set forth herein.
1. RENTAL Lessee shall pay to Lessor as rental for the Equipment,the periodic rent payments set forth on the reverse hereof,at Lessor's Head Office as follows:the
first rent payment shall be due upon the execution hereof by Lessee and subsequent rent payments in every calendar month,or other calendar period,after the month
of shipment on the 1st of such month or period. Rent hereunder is payable without abatement;provided that a charge may be assessed on any partial receipt of
Equipment by Lessee from time to time prior to the commencement date of the lease computed from the respective dates of such receipts and said payment shall
become due and payable on the scheduled commencement date. if monthly or other periodic rental payments include the cost of a service contract,Lessee agrees to
pay any increase in such service contract costs as they are increased from time to time by the Lessor, in its sole discretion,in accordance with the Lessor's ordinary
business practice.
2. LOCATION AND USE The Equipment shall be located and used at the place designated on the reverse side and not elsewhere without the prior written consent of
Lessor. Lessee shall cause the Equipment to be maintained and operated carefully in compliance with manufacturer's recommendations and applicable laws and
regulations by competent and duly qualified personnel only and for business purposes only.
3. REPRESENTATIONS AND WARRANTIES Lessor hereby assigns to Lessee for and during the lease term, the warranties, if any and if assignable, of the j
manufacturer with respect to the Equipment and Lessor agrees that upon the prior written request of Lessee and at Lessee's expense,Lessor will co-operate with Lessee
in such enforcement of any warranty,guarantee or other obligation made by the manufacturer or supplier in respect of the Equipment as may be reasonably necessary.
Lessee acknowledges that Lessee alone has selected the Equipment and that Lessor is not a manufacturer or distributor or an agent thereof and there are no
agreements,representations, warranties or conditions, oral or written,express or implied,legal,statutory,customary,collateral,or otherwise,given or made by Lessor
with respect to or in connection with the Equipment or this lease and the same are hereby expressly excluded. Lessee acknowledges that the essential element hereof is
lease financing only and the Lessee agrees to pay rent unconditionally to the Lessor without set-off or compensation in the event that the Equipment is not properly
installed, does not perform as represented by the manufacturer or supplier or totally or partially fails to function or perform.The Lessee will look to the Lessor only
for co-operation as aforesaid in the enforcement of any warranty,guarantee,or other obligation made by the manufacturer or supplier in respect of the Equipment. j
4. EQUIPMENT OWNED BY LESSOR Title or ownership of the said Equipment is,and shall at all times remain, vested in Lessor and Lessee shall have not right of
property therein except the right to use said Equipment which right shall be exercised by Lessee and/or competent employees of Lessee.
THE UNDERSIGNED ACKNOWLEDGES TO HAVE READ THE ENTIRE LEASE AND ACCEPTS THE TERMS AND CONDITIONS TH/E�RWF.
Executed.................................................................................................. Name of Lessee:../...� t�......coa.`:. A. ��.t..!....Q+ ...!.�'L..(�....../.(1.���
GLENORALEASING INC. 71 5 ........ .r=.... �rf' ' ...:................................ .............................. ....
The undersigned affirms that he is duly authorized to execute this LEASE CONTRACT
BY:.......................................................................................................................................................� BY:......................................
................................TITLE:......................................................................
Authorized Signature Authorized Signature
TITLE:................................................................................................................................... BY:........................................................
................................................................................................
GLENORA LEASING INC.
R.R. 4, Picton, Ontario KOK 2TO
(613) 476-8102 Fax (613) 476-8102
EQUIPMENT ACCEPTANCE
DELIVERY RECEIPT
Date:
The undersigned Lessee acknowledges delivery and/or installation of the personal property herein below described which is the property
described in a Lease in which the undersigned is Lessee and Glenora Leasing Inc.is Lessor.The undersigned acknowledges that such pro-
perty has been inspected,is operating satisfactorily and in all respects is as represented.
EQUIPMENT QTY. MODEL DESCRIPTION SERIAL NO.
Complete with all accessories, where applicable.
All of the items referred to above were received by us in good order and condition,and are acceptable to us.It is understood and agreed that
Glenora Leasing Inc. in no way or manner assumes any responsibility,either now or hereafter, for the use,performance,functioning,
maintenance or service of the equipment,for malicious damage or for its suitability or adaptability for any particular purpose in accor-
dance with the terms of the aforesaid Lease Contract.
Legal Name of Lessee
Per:
Location of Equipment:
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SCHEDULE "C"
GE
O.E. Oshawa Inc.
580 King St. West
Oshawa, Ontario
L1J M
(416) 436-6363
September 25, 1991
The Corporation of the Town of Newcastle
40 Temperance Street,
Bowmanville, Ontario
L1C 3A6
Attention: Ms. Lou Ann Birkett
Dear Ms. Birkett,
This is a letter explaining the rental lease agreement for the
Canon NP368 Copier for the Administration of of The Town of
Newcastle. The NP305kD is on a short term rental until January 1,
t✓ 1992.. At that time the new council will be in power and a 33 month
agreement will be decided on. If the new council chooses not to
0V enter an agreement for this equipment the present rental will
t/01 expire and no penalties will be charged.
I trust that this meets the. file needs for the Town of Newcastle.
Sincerely,
eve 7 a e
ales l
Manager
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O E inc. Office Equipment Company of Canada 1490 Denison Street,Markham,Ontario 1-311 9T7
Cie Canadienne d'Equipement de Bureau Telephone:(416)491-9330 Fax:(416)491-9128
MONTREAL TORONTO OTTAWA QUEBEC HAMILTON
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