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Home My WebLink AboutTR-27-89 TOWN OF NEWCASTLE f; � REPORT File #�� Res. r2 ' By-Law # - ' MEETING: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE DATE: March 201, 1989 REPORT #: TR-27-89 FILE #: SU&JECT: PROPOSED PHOTOCOPIER LEASE - CLERK'S DEPARTMENT 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 O.E. Inc. , (Glenora Leasing Inc.) , Markham, Ontario, to lease one (1) only Canon NP66501 with twenty (20) bin sorter, at a monthly cost of $366.54 plus Provincial Sales Tax, for a period of sixty-six (66) months with a buyout option of $1,642.20 at the sixtieth (60th) month; and 3. That Council accept the written proposal (Attachment "B") , from O.E. Inc. , Markham, Ontario, for a five (5) year or two million (2,000,000) copies warranty program at a cost of 01 - 10,000 copies $0.0085 per copy, 10,000 - 25,0100 copies $0.0108 per copy, 25,0001 + copies $0.0075 per copy, plus Provincial Sales Tax; and 4. That the procedures set out in the Purchasing By-Law #82-92, Section 5, Paragraph 014, be waived for this particular transaction; and 5. That the attached By-Laws (Attachments "C" and "D") , authorizing the Mayor and Clerk to execute the Agreements be approved; and 6. 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; and 7. That the funds be drawn from the appropriate Capital Lease Accounts which are allocated for the payment of a photocopy lease. 705 Page - 2 - TD-27-89 PBDD0GED PHOTOCOPIER LEASE - CLEBK'G DEPARTMENT BACKGROUND AND COMMENT: For several months mow, the Clerk's Department have been operating with two (3) outdated photocopiers that have outlived their usefulness and are beyond the point of repair. Excessive breakdowns have effected the administrative production of the office staff. Both units are owned by the Town of Newcastle. Subsequently, an informal quotation request outlining the photocopier requirements of the Clerk's Department was prepared and proposals were invited from thirteen (13) different suppliers. Quotations were received and tabulated as per Attachment ''En. The quotations received were reviewed by both the Purchasing and Supply Agent and the Clerk, and the overall monthly cost (monthly lease cost plus approximate moutbIl' service cost pIoo approximate monthly toner usage) was calculated. The five (5) overall low bids were accessed as follows: Comments TeIeoopy Systems - The Sanio machine is very noisy in 8av10 Model 7450 omnpaciaou to other photocopiers and does not make for a very pleasant working environment. Reotecb Copiers - Based on past experience with the supplier Nashua Model 7140 and the Nashua photocopier, it was felt that this machine would not adequately meet the needs of the Clerk's Department, nor would it withstand the high volume usage. Geatetuez - This machine is limited in its dopIexiog Model 34020 features - ie. - unable to beodIe Iln x 1711 - Operator most know if duplexiug even or odd number of pages. - DupIexiog done from one (I) tray only (unable to aooeoo large capacity trays) . Office Copy - Based on past experience with this Mita 4085 supplier and tbey0ita photocopier, it was felt that this machine would not adequately meet the needs of the Clerk's Department. U.E. Inc. - This machine offered a faster copy speed Canon 0P6650 than the four (4) lower bids (50 o.p.m.) . - Automatic stapling. - More user friendly. - Overall lowest coat per copy for service. / U0 70 � Page - 3 - TD-27-89 PROPOSED PHOTOCOPIER LEASE - CLERK'S DEPARTMENT Based on the overall monthly coot and the uaaeaameot of the four (4) low bids, the Canon 0P6650 was brought in no a two (2) week trial basis for the gmzpooea of photocopying [b000iI agendas, etc. The Clerk's Department have advised that this machine has been outstanding. In addition to the above noted benefits, the acquisition of a Canon photocopier will further standardize photocopiers tbzouobnot the various Departments of the Town of Newcastle (there are currently three (3) other Canon photocopiers) . For the information of Council, the outright purchase vezaoa leasing comparison is as follows: Outright Purchase - $ 16,422.00 f Service Coate f D.S.T. Lease - $ 366.54 z 66 ox)utb term $ 24'19I.64 f Service Coats + D.S.T. & lease agreement is proposed for the following zee000e: a) Should it become evident that the photocopier no longer meets the needs of the ooecv alternate equipment can be negotiated and a new lease agreement entered into, in most noaee with no penalty to break the existing lease. b) Warranty guaranteed for term of lease including replacement for non-serviceability. n) Capital expenditure not required, frees funds for other purposes. The Treasurer has reviewed the funding requirements and oouoora with the recommendation. Queries with respect to department needs, specifications, etc. abooId be referred to the Clerk. After further review and analysis of the proposals, it was mutually agreed by the Clerk and the Poroboaiog and Supply Agent that the proposal from O.E. Inc. , Markham, Ontario, for the Canon 0D6650 be recommended for acceptance. Respectfully submitted, Recommended for presentation to the omnittee, M. Marano,Treoaorec.` Chief �� iotzative officer. '�_� C. rie, A.M., T. (A) , /�m� Clerk. �~', LAB/hj l 7 � 7 Attachments / U / ATTACHMENT "E" BID SUMMARY - PHOTOCOPIER REQUIREMENTS BIDDER PURCHASE PRICE LEASE COPIES PER TOTAL MONTHLY COST (MONTH) MINUTE (LEASE AND MAINTENANCE) (60 MONTHS) Telecopy Systems $ 13,895.00 $ 392.00 45 $ 662.00 Savin Model 7450 plus options - 20 bin sorter buyout option - 2500 sheet deck at lease expiry $ 1,389.50 Rentech Copiers $ 10,254.00 $ 220.00 40 $ 670.00 Nashua Model 7140 buyout option - 20 bin sorter at lease expiry - 1000 sheet deck $ 1,025.40 Gestetner $ 11,731.00 $ 265.06 40 $ 685.06 Model 224020 buyout option includes - 20 bin sorter with at lease expiry options stapler $ 10.00 - 2500 sheet deck Office Copy $ 10,750.00 $ 247.25 40 $ 712.25 Mita 4085 buyout option - 20 bin sorter at lease expiry - 2500 sheet deck $ 880.00 O.E. Inc. $ 16,442.00 $ 366.54 50 $ 726.54 Canon NP6650 buyout option at lease expiry $ 1,642.20 Able Office Equipment $ 11,285.00 $ 286.63 40 $ 736.63 Toshiba 8510 buyout option - 20 bin sorter at lease expiry - 1000 sheet deck $ 1.00 ATTACHMENT "E" (Continued) BID SUMMARY - PHOTOCOPIER REQUIREMENTS BIDDER PURCHASE PRICE LEASE COPIES PER TOTAL MONTHLY COST (MONTH) MINUTES (LEASE AND MAINTENANCE) (60 MONTHS) Telecopy Systems $ 14,295.00 $ 422.00 50 $ 752.00 Savin Model 7500 plus options - 20 bin sorter buyout option - 2500 sheet deck at lease expiry $ 1,429.50 Allfax $ 12,185.00 $ 305.00 46 $ 755.00 Panasonic FP4650 buyout option ? (approx.) (approx.) - 20 bin sorter - 2000 sheet deck Cook's Office Equipment $ 11,095.00 $ 251.11 40 $ 761.11 `- Minolta EP570Z buyout option plus plus options - 20 bin sorter 2 months before options - 2000 sheet deck lease expiry $ 1,109.50 National Office Systems $ 11,770.00 $ 292.80 40 $ 772.80 Mita Model 4085 buyout option includes - 20 bin sorter 2 months before options - 2500 sheet deck lease expiry $ 807.00 Cook's Office Equipment $ 14,699.00 $ 333.41 55 $ 813.41 Minolta EP870Z buyout option plus - 20 bin sorter 2 months before options - 2000 sheet deck lease expiry $ 1,469.90 ATTACHMENT 91E" (Continued) BID SUMMARY - PHOTOCOPIER REQUIREMENTS BIDDER PURCHASE PRICE LEASE COPIES PER TOTAL MONTHLY COST (MONTH) MINUTES (LEASE AND MAINTENANCE) (60 MONTHS) Executive Copier $ 16,995.00 $ 412.13 60 $ 862.13 Systems Inc. buyout option Sharp SF-9750 2 months before - 20 bin sorter lease expiry - 2000 sheet deck $ 1,699.50 Pitney Bowes $ 14,760.00 $ 343.42 40 $ 898.42 Model D460 buyout option - 20 bin sorter at lease expiry - 1000 sheet deck $ 1,476.00 NOTE: Provincial Sales Tax is extra on all of the above ATTACHMENT "C" THE CORPORATION OF THE TOWN OF NEWCASTLE BY-LAW NUMBER 89- Being a By-Law to authorize the entering into a Maintenance Agreement with O.E. Inc. 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 Corporate Seal, a Maintenance Agreement between O.E. Inc. and the Corporation dated this day of March, 1989, which agreement 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 March, 1989. By-Law read a third time and finally passed this day of March, 1989. 10 , r J-64a Mayor Clerk 711 SCHEDULE "D" THE CORPORATION OF THE TOWN OF NEWCASTLE BY-LAW NUMBER 89- Being a By-Law to authorize the entering into a Lease Agreement with Glenora Leasing Inc. 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 Corporate Seal, a Lease Agreement between Glenora Leasing Inc. and the Corporation dated this day of March, 1989, which agreement 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 March, 1989. By-Law read a third time and finally passed this day of March, 1989. Mayor Clerk it I i 712