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Home My WebLink AboutTR-27-88 UNFINISHED BUSINESS TOWN OF NEWCASTLE ` £ REPORT File # elej Res. #P ) � - -- - By-Law hIEING: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE DATE: May 2, 1988 REPORT #: TR--27-88 FILE #: SU&JECT: LEASE AGREEMENT - MAIL PROCESSING EQUIPMENT RECOMMENDATIONS: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. That this report be received; and 2. That Council accept the written proposal (Attachment "A") , from Friden Alcatel, to lease the noted mail processing equipment and furniture at a fixed lease cost of $695.00 plus Provincial Sales Tax, per month for a period of sixty (60) months; and 3. That the funds be drawn from the Current Operating Accounts which are allocated for the payment of the mail processing equipment; and 4. That the attached By--Law be forwarded to Council for approval; and 5. That in accordance with Section 64 of the Ontario Municipal Board Act, authorization be obtained from the Ontario Municipal Board prior to the execution of this agreement. Page - 2 - TR-27-88 LEASE AGREEMENT - MAIL PROCESSING EQUIPMENT BACKGROUND AND COMMENT: With the anticipated completion date of the New Administrative Facility rapidly approaching, the mail processing equipment for all Departments must now be addressed. It is proposed that the necessary equipment be installed in the "Mail Room" area, located within the Clerk's Department. For information purposes, the following is a summary of the current mail processing equipment and the costs incurred for all Town of Newcastle Departments. NOTE: All prices quoted are: plus Provincial Sales Tax Clerk's Department - Model 560101 Maintenance (mailing machine and scale) $ 501.00 per year Meter Rental ($1015.601 per quarter) $ 316.801 per year Mailing Machine Rental (extension of lease, P.O.#5434) $ 459.68 per year $1,277.48 per year Treasury Department - Model 54601 (rental contract includes maintenance) Mailing Machine Rental ($71.010 per month) $ 852.00 per year Meter Rental ($21.00 per month) $ 252.010 per year Scale $ 324.001 per year $1,428.0101 per year Planning/Public Works Departments - Model 54601 (rental contract includes maintenance) Mailing Machine Rental ($65.00 per month) $ 780.0101 per year Meter Rental ($21.0101 per month) $ 252.0101 per year $1,032.00 per year Total Yearly Cost Mailing Equipment (All Departments) $3,737.48 per year NOTE: All of the above agreements may be cancelled upon three (3) months prior written notice. Page - 3 - TR-27-88 LEASE AGREEMENT - MAIL PROCESSING EQUIPMENT In view of the increased mailing requirements resulting from a centralized mail processing system, proposals were received for upgraded equipment as follows: Pitney Bowes Purchase Price Lease Cost Per Month (60 month period) Model 610101 Mail Machine $ 6,990.00 $ 172.00 Model 5884 Electronic Scale $ 3,515.00 $ 86.25 Model 3340 Inserter $14,850.00 $ 364.10 & Model 1861 Folder Mail Center Furniture $ 6,900.00 $ 169.20 * as per floor plan i) $32,255.00 $ 791.55 Model 6511 Electronic Postage $ 39.90/month Meter Rental Service and Maintenance Costs Monthly Model 6100 Mail Machine $ 66.50 Model 5884 Electronic Scale $ 17.00 Model 3340 Inserter $ 100.67 Model 1861 Folder $ 21.92 $ 206.09 Trade-In Equipment Value 5600 Mail Machine ii) $1,810.00 5046 Electronic Scale 1831 Feeder 5391 Mail Machine Cost Breakdown With Trade-In Equipment Cost i) $32,255.00 Trade-In ii) $ 1,810.00 Total Cost $30,445.00 Lease Cost $ 747.16 per month Rental of Electronic Postage Meter $ 39.90 per month $ 787.06 Service $ 206.09 per month Total Monthly Cost $ 993.15 Total Yearly Cost (All Departments) $11,917.80 Page - 4 - TR-27-88 LEASE AGREEMENT - MAIL PROCESSING EQUIPMENT Friden Alcatel Purchase Price Lease Cost Per Month (601 month period) Model 91801 Mail Machine $ 7,120.00 $ 168.00 Model 8512 Electronic Scale $ 1,567.010 $ 37.001 Model TR2 Inserter Folder } Model PF45 & SF4 (east/west fold) } $16,765.0101 $ 396.0101 Mail Center Furniture $ 3,984.0101 $ 94.00 * as per floor plan $29,436.001 $ 695.00 Meter Rental $ 301.00/month * Buyout option 7.50 of purchase cost upon lease expiry Service and Maintenance Costs Monthly Model 91801 Mail Machine $ 59.33 Model 8512 Electronic Scale $ 13.00 Model TR2 Folder Inserter } Model PF45 & SF4 Folder } $ 121.75 Total Service $ 194.018 Total Monthly Cost (Lease & Service) $ 919.018 Total Yearly Cost (All Departments) $11,0128.96 NOTE: Friden Alcatel and Pitney Bowes are the only two (2) companies servicing Durham Regin who offer a complete line of mail processing equipment. Accepting the proposal for the Friden Alcatel equipment over the proposal for the Pitney Bowes equipment will provide the following benefits to the Town: - lowest overall cost - the Friden equipment has the ability to fold the Town's tax bills "on line" where as the Pitney Bowes does not. The following references have been provided by Friden Alcatel and have been qualified by the Purchasing and Supply Agent: Toronto Board of Education North York Board of Education Town of Markham Regional Municipality of Durham Page - 5 - TR-27-88 LEASE AGREEMENT - MAIL PROCESSING EQUIPMENT The funds required for the new equipment will be drawn from the Current Operating Accounts, as provided in the 1988 Budget. For the information of Council, the lease cost is fixed at a total cost of $695.00 plus Provincial Sales Tax for the sixty (60) month term. However, the service contract for the equipment, as well as the meter rental are adjusted annually in accordance with inflation. After review and analysis of the equipment by both the Purchasing and the Clerk's Department, staff recommend that the proposal to lease the Friden Alcatel mail processing equipment be accepted. Delivery of the equipment will not be accepted until the New Administrative Facility is completed. Respectfully submitted, Recommended for presentation to the Committee, .R. Blanchard, e wrenc otseff, Treasurer. Chief A f�i7rative Officer. &1(-10 CLI 161QL D.W. Oakes, B.A.,A.M.C.T, Town Clerk. LAB/hjm Attachments ATTACHMENT "A" 33 MELFORD DRIVE SCARBOROUGH,ONTARIO M1B 2G6 TEL (416) 298-2100 FAX (416) 292-0364 1-800-387-5153 I I April 18, 1988 Mrs . Lou Ann Birkett Town of Bowmanville 69 King Street East Bowmanville, Ontario Dear Lou Ann, Enclosed is our revised quotation which includes the additional Folder and Inserter peripherals for your tax bills, as well as maintenance agreements on all the equipment proposed . I . Model TR2 Two Station Folder/Inserter ( feeds and folds from both stations ) with additional Side Feeder and Folder : Purchase Price $16, 975 . 00 60 Month Lease Term $ 396 . 00 per month ( 7 . 5% purchase option) Full maintenance includes all parts and labour, including all rubber parts at : $ 1, 461 . 00 per annum I II . Model 9180 Heavy Duty Electronic Automatic Postage Machine Purchase Price $ 7, 120 . 00 First year meter rental on Model 9255 Electronic, Four Bank Postage Meter $ 30 . 00 per month I 60 Month Lease Term $ 168 . 00 per month ( 7 . 5% purchase option) Maintenance Agreement Parts and Labour excluding rubber parts $ 594 . 00 per annum i Full Maintenance on all Parts including rubber parts $ 712 . 00 per annum Electronic Computing III . Model 8512 5 kg p g Scale with Canada Post Rates and Full International Rates Purchase Price $ 1, 567 . 00 I 60 Month Lease Term $ 37 . 00 per month ( 7 . 5% purchase option ) Maintenance Agreement covering all Parts and Labour $ 156 . 00 per annum. i _, 33 MELFORD DRIVE SCARBOROUGH, ONTARIO M1B 2G6 TEL (416) 298-2100 FAX (416) 292-0364 1-800-387-5153 Page Two April 18, 1988" Town of Bowmanville IV . Friden Alcatels Modular Heavy Duty ( ten gauge ) Steel Sorting Furniture with 33 wide table tops and telescopic legs for complete height ajustability. REQUIRED: Five only 68" Tables with 25 Bin Sort Module and one only 45 1/2" Table . Purchase Price $ 3, 984 . 00 60 Month Lease Term $ 94 . 00 per month ( 7 . 5% purchase option) NOTE: All of the above equipment is Friden manufacture . FST included; PST extra No Delivery charges; set up and training by Friden Technicians at no charge to the customer Warranty: ninety days Parts and Labour Delivery: 7 - 14 days I Please contact me personally should you require further information . Thank you for your time and consideration . Yours truly, for Friden Alcatel i ruce Dow j Government Marketing BD:ds i I i NAME OF FIRM --��-- NOM DE LA FIRME- /�)[c/i`I aF /VEGvC�ISI"LE , i MA Picky P DePgR'r mi 4a T.S _L.E S sl j- j QLl , _I — — ---- Q T,E ol Gq -- -- - - I AO i - F — - - --- x"" _ �— -- fib• �-_ t ! 400-247(ST1062)REV.10/83 THE CORPORATION OF THE TOWN OF NEWCASTLE BY-LAW NUMBER 88- Being a By-Law to authorize the entering into a Lease with Friden Alcatel The Municipal Council of 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 between Friden Alcatel and the Corporation dated this day of May, 1988, which lease is attached hereto and marked Schedule "X". 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 May 1988. By-Law read a third time and finally passed this day of May 1988. Mayor Clerk