HomeMy WebLinkAboutTR-13-87 TOWN OF NEWCASTLE `�"' (��
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t� N � REPORT File #
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MEETING. GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
DATE: March 16, 1987
REPORT #: _ - 7 FILE #:
SUB.ECT: RENTAL PROPOSAL - PHOTOCOPY 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
Office Equipment Company of Canada, Markham, Ontario, to rent one (1)
only Canon Model NP801701 photocopier at a fixed quarterly cost of
$19012.001 (plus Provincial Sales Tax) which includes one million
copies at no additional cost for service or toner for a period of
twenty-eight (28) quarters; and
3. That the funds be drawn from the current Operating Accounts which
are allocated for the payment of the current photocopy lease.
BACKGROUND AND COMMENT:
The current lease for the Canon NP400 photocopier located in the Hampton
Municipal Office expires April 2, 1988. This copier is used by both the Public
Works and the Planning Departments, at a quarterly cost of $1098.48 (plus
Page - 2 -
U/
TR-13-87
RENTAL PROPOSAL - PHOTOCOPY EQUIPMENT
Provincial Sales Tax) . Added to this is a quarterly cost of $803.52 (plus
Provincial Sales Tax) for service and toner, bringing the total quarterly cost
to $19012.00 (plus Provincial Sales Tax) .
As a result of increased photocopying requirements and excessive breakdowns,
Office Equipment Company of Canada have proposed a new rental agreement for a
Model NP807O at our present quarterly cost of $19012.0101 (plus Provincial Sales
Tax) , for a term of twenty-eight (28) quarters. The proposed agreement would
also include a buyout option of 5% of the Fair Market Value upon expiration of
the rental term. Our present lease agreement with Standard Trustco Financial
Management Ltd., Mississauga, Ontario, would be cancelled at no additional cost
to the Town.
Accepting the proposal for the Canon NP8070 will provide the following benefits
to the Town:
- Renting a copier eliminates third party leasing arrangements
- Canon have proven reliability and dependability with service and
capability
- No increase in cost
- Price fixed for a term of seven (7) years at 15,000 copies per month
(applicable service cost would be charged only when and if our volume
exceeds this quantity. Present usage is approximately 12,010101 copies
per month) . The price of the existing equipment is not fixed in that
the cost for service and toner will continue to increase.
- The Canon NP8070 is superior equipment which will handle the
increasing useage
- Excessive breakdowns which currently disrupt staff would be
eliminated
- The Canon NP8070 is under full warranty replacement for the term of
the rental agreement
The costs required for the new copier will be provided by the current 1987
budget which is within the amounts now being expended for the NP400.
Page - 3 -
TR-13-87
RENTAL PROPOSAL - PHOTOCOPY EQUIPMENT
After review and analysis of the situation by the Purchasing, Public Works and
Planning Departments, and in view of the numerous benefits to the Municipality,
staff recommends that the proposal to rent the new Canon NP8070 be accepted.
Respectfully submitted, Recommended for presentation
to the Committee,
�Y.rR Hlanchard, awrence ��jj otseff,
Treasurer. Chief Jh n strative Officer.
T.T. Edwards,
Director of Planning.
G." h
g .
Director of Public Works.
'1B/hjm
_ctachment
CONDITIONAL SALES AGREEMENT .�
❑ MONTREAL
5990 Cote de Liesse Road
Montreal,P.Q. H4T 1 V7 • (6 14)342-5151
❑ TORONTO
525 Denison Street PAGE /
Markham,Ontario L3R 1B8 • (416)491-9330
OE ' • ❑ OTTAWA D S T OE Ns or
768 Belfast Road CREDIT
Ottawa,Ontario K 1 G OZ5 • (613)236-7281
SOLD TO No SHIP TO No FROM LOCATION N° SALESMAN N4
F.O.B. CARRIER PO NY DATE 111,1OUIRED
m m d d y y n rn d d y y
FREIGHT TERMS ORDERED BY
CODE
LABELS OFFICE USE ONLY
SM TPO - - - - - - - - - - - - - - - - - -- - - - T S - - - - - - - - - - - - -- - - - - - - - - - -
SOLD TO SHIPTO
Corporation of The Town of Newcastle ,
40 Temperance St . ,
Bowmanville Ont .
Al ION TELEPHONE ATTENTION TELEPHONE
Lou Ann Birkett 623-3379
h,FIR PRODUCT CODE QUANTITY QTY. UNIT DESCRIPTION UNIT PRICE AMOUNT
(MODEL) ORDERED SHIPPED
Purchase option for Canon NP-8070
25 Bins is balance of payments and
$1 , 648 . 18 anytime .
The Canon NP-807.0/25 Bins is
warranted for seven vears and
2 000, 000 copies and would be
exchanged if unrepairable (mutual
_ agreement ) . The contract includes
seve-IJ t,oc)e>.poc) _ Qs yw,e- r (a 5 a 7
1st €i-ve years 9$ copies at
SPECIAL INSTRUCTIONS
__ 15 , 000 copies per month - toner and service .
Includes the re-location and ownership of Canon SUBTOTAL
NP-400AFSD at Hampton, Ont . SHIPPING
REFERENCE TOTAL
BANK
ADDRESS
TAX
LANDLORD ADDR E55 F
NET DUE
The undersigned Purchaser hereby agrees to buy from OE Inc.Office Equipment Co.of Canada(hereinafter called"the Vendor")and the Vendor agrees to sell to
Purchaser,upon approval of this order, the goods listed above upon the above mentioned terms of payment. Purchaser hereby also agrees the conditlons s out
on the back hereof,which conditions are hereby made part of this contract,further acknowledging having read and ta(en cognizance the . Thi order sh I not
be considered valid until officially accepted by the Company.
Dated at Salesman
OE Inc.(Office quipment Co.of Canada)
Firm Name Approved
By By
Purchaser's Signature Authorized Signature
'U/
CONDITIONAL SALES AGREEMENT
/ IT IS AGREED
1. that property and ownership in and title to the said goods shall not pass to the Purchaser but shall remain with the Vendor,
notwithstanding delivery of possession,until the purchase price of all of the said goods and interest,if any,thereon and the costs,
charges and expenses incurred by the Vendor in connection with any proceedings to recover payment thereof under this or any
previous or subsequent contract has been fully paid and all the terms and conditions hereof have been complied with. The goods
shall be kept in the possession of the Purchaser and shall not be removed from the Province where delivery is made without
permission of the Vendor and this Purchaser shall not transfer any interest in the goods or the contract until payment in full of the
purchase price shall have been made.
2. that the whole or any part of any payment made by the Purchaser at any time to the Vendor may be applied and appropriated by the
Vendor in such manner as Vendor may in its sole discretion from time to time decide, upon this or any previous or subsequent
indebtedness of the Purchaser to the Vendor notwithstanding any contrary direction by the Purchaser or of the terms of payment of
any contract between the Vendor and the Purchaser or any entries or credits made in the books of the Vendor while there is any
balance owing to the Vendor by the Purchaser.
3. that acceptance by the Vendor of any collateral notes or other security and the recovery of any judgment against the Purchaser shall
in no way affect the rights of the Vendor to repossession and sale of goods. Loss or destruction of the goods shall not release the
Purchaser from payment in full.
4. that time is of the essence of this agreement and should the purchaser make default in payment hereunder or breach any of the
terms of this agreement or abandon or dispose of said goods orremove them from the premises specified as the Purchaser's
address in this agreement without permission of the Vendor in writing or if the said goods shall be seized for rent or taxes or if rents
or taxes shall be overdue or unpaid on any premises where the goods are or if the Purchaser shall become insolvent or make in
assignment for the benefit of creditors,the whole amount covered by the contract in any other contracts for goods purchased by
the Purchaser from the Vendor,whether due or not,shall forthwith without notice become due and payable and Purchaser's right
to possession of the goods specified in this and all other contracts with the Vendor shall immediately cease and all payments
therefore made by the Purchaser shall be forfeited to the Vendor as and for liquidated damages and not as a penalty and as
reasonable compensation for the use of said goods,injury to and depreciation thereof and expenses and trouble to respect of the
same and the Vendor or the Vendor's agent may without process of law and without hindrance or opposition from the Purchaser
enter upon any premises and take possession of the said goods without being liable for trespass. The waiver of any default shall not
operate as a waiver of subsequent defaults and all remedies conferred upon the Vendor hereunder are cumulative.
5. that at the Vendor's option upon taking possession of the said goods and if Purchaser shall not redeem as herein provided, the
Vendor may,on giving any notice thereof required by the Conditional Sales Act,sell the goods at public auction or private sale or
by processof law and may charge against the proceeds of the said sale the costs and expense of repairing or putting the goods in
proper shape for sale and of its costs and expenses of taking or obtaining possession and of such sale and of any action or suit in
respect thereof and after deducting the net amount resulting from such sale from the amount of the purchase price owing by
Purchaser may forthwith recovery any balance from the Purchaser by action or suit.
6. that Purchaser shall have the right to redeem the goods repossessed by the Vendor within twenty days after repossession thereof
upon paying the balance of all amounts'payable under this or any prior or subsequent contract including costs and expenses as
aforesaid, and after the said twenty days Purchaser shall have no claim against the Vendor in respect of the said goods or any
payment made thereon.
7. Purchaser agrees to pay a carrying charge on any unpaid balance of account Purchaser acknowledges having received a copy of
this agreement and admits that it embodies all of the obligations, terms, conditions, warranties and guarantees between the
Vendor and the Purchaser with reference to the said goods. No other condition,warranty or representation expresed or implied,
statutory or otherwise,shall be deemed to have been made by the Vendor. Any provision of this contract contrary to law shall not
invalidate any other provision hereof.
8. The Purchaser hereby acknowledges receipt of a copy of this contract and that the name and address of OE inc(Office Equipment
Co.of Canada), appears prominently upon the said goods.
9. This equipment is delivered to this Purchaser on the condition that if the full cash payment and value thereof has not been paid,the
title to and ownership of the said equipment remains vested with OE inc(Office Equipment Co. of Canada).
10. This agreement and all its terms shall apply to,ensure to the benefit of and bind the heirs,executors,administrators,successors
and assigns of the Purchaser and the Vendor.
11. The parties hereto hereby agree that they have requested that this Agreement be drawn up in the English language only.
Les parties aux presente declarent qu'ils ont exige que cetteconvention soit redigee clans la langue anglaise seulement.
A- 4 6 8 6_Y,/ 3((?',
• MACHINE RENTAL AGREEMENT
0 E Inc. Office Equipment Company of Canada
. . . Hereinafter
referred to as "OE inc. (Office Equipment of Canada)" agrees to furnish to customer in accordance with the
terms and conditions of this Agreement, the use of the equipment listed below:
Quantity Make Model Description Serial Number
One Canon NP-8070 Photocopier System — 25
Bins Sorting — Stapler
Quarterly
Mk cAkl c Use Charge * Copies Incl. In Minimum Per Copy Rate* Installation Charge
$1 , 902 . 00 45 , 000 per quarter includes service
and toner
*Plus applicable sales tax.
The term of this Agreement is ..$.4......... months from date of installation and will continue in effect for successive
subsequent terms of 24 months unless terminated by either party on not less than thirty (30) days written notice
prior to the expiration of any term.
No terms or conditions, expressed or implied, are authorized unless they appear on the "Original" of this order,
signed by customer and approved by OE inc. (Office Equipment of Canada).
Customer agrees that its obligation to pay the monthly rental and the rights of OE inc. (Office Equipment of
Canada) to such monthly rental are absolute and unconditional and are not subject to any abatement, reduction,
set-off, defense,counterclaim or recoupment due or alleged to be due to, or by reason of, any past present or
future claims which customer may have against OE inc. (Office Equipment of Canada).
THE ADDITIONAL TERMS AND CONDITIONS ON THE REVERSE SIDE HEREOF ARE INCOR-
PORATED IN AND MADE PART OF THIS AGREEMENT. No one is authorized to change, alter, or amend
the terms or bonditions of this Agreement unless agreed to in writing by an Officer of OE inc. (Office Equipment
of Canada).
REFERENCES A CUSTOMER ACCEPTANCE
Bank Company CORPORATION OF THE TOWN OF
NEWCASTLE
Branch Address 40 Temperance St . ,
Postal
Landlord City BowmanvilleProv. Ont . Code L1C1T6
Telephone Number (416 ) 623-3379
xAuth. Sign. Title
X(printed) Date
OE Ainc. (O ice Equipm ent of Canada) ACCEPTANCE
By: Installation address (if different from above)
Sale tati Bra Date B Municipal Offices ,
Scugog Rd . , Hampton, Ont .
By:
Head Office Auth:
Date
Bill to: A❑ B O
TERMS AND CONDITIONS �� (C)
1. Title to and ownership of the equipment and furnishings leased shall at all time remain vested in the Lessor,and the Customer
shall have no rights of ownership therein but shall have the use and enjoyment thereof. The customer agrees not to part with the
custody or possession of any of the said equipment or furnishings during the term of the Agreement.
2. The said equipment and furnishings shall not be removed by the Customer to any other location without written permission of
the Lessor. The Customer shall advise the Lessor of the name and address of his landlord before the delivery of the said office
equipment and furnishings in order that the Lessor may notify the landlord of its title in the said equipment and furnishings
which shall not become subject to the landlord's privilege.
3. Customer agrees to grant OE inc. (Office Equipment of Canada) or its authorized dealer access to its premises to read meters,
service, inspect, repair or remove the equipment hereunder,and Customer agrees not to make any alterations to the equipment
and not to move the equipment from the location(s) where installed by OE inc. (Office Equipment of Canada) or its authorized
dealer without prior written approval by OE inc. (Office Equipment of Canada).
4. A. Minimum monthly use charge for each unit of equipment will commence from the date the unit is installed and is payable
monthly in advance. Overage rates will be billed monthly in arrears commencing from the date the unit is installed.
B. If required,the Customer agrees to submit to OE inc. (Office Equipment of Canada) on the last working day of each month,
OE inc. (Office Equipment of Canada) meter cards showing complete and accurate meter readings as of the date of completion.
5. This Agreement cannot be cancelled or terminated except as provided herein and will remain in force for the full term indicated
herein. Upon termination of this Agreement,equipment will be released promptly to OE inc. (Office Equipment of Canada) or its
authorized dealer and Customer will remit to OE inc. (Office Equipment of Canada) all monies due hereunder.
6. OE inc. (Office Equipment of Canada) at its option, may terminate this Agreement without prior written notice where invoices
are unpaid and overdue,or where the equipment has been moved,altered or tampered with. In such event the Customer shall be
responsible for any damages sustained by OE inc. (Office Equipment of Canada) as a result.
7. OE inc. (Office Equipment of Canada) may at any time assign all or any part of its interest in this Rental Agreement or the equip-
ment leased hereunder to a third party and such third party shall not be liable or responsible to customer for the obligations of
OE inc. (Office Equipment of Canada) hereunder.
8. INSURANCE. Lessee shall obtain,and maintain for the entire term of this Agreement,at its own expense,property damage and
liability insurance and insurance against loss or damage to the equipment including without limitation, loss by fire, (including
extended coverage) theft,collision and such other risks of loss as are customarily covered by insurance on the type of equipment
rented hereunder and by prudent operators of businesses similar to that in which Lessee is engaged, in such amounts, in such form
and with such insurers as shall be satisfactory to Lessor. The amount of insurance covering damage to or loss of the equipment
shall not be less than the greater of the full replacement value of the equipment or the instalments of rent then remaining unpaid
hereunder. Each insurance policy will name Lessee and Lessor as insureds,will name Lessor as loss payee thereof,and shall con-
tain a clause requiring the insurer to give to Lessor at least 10 days prior written notice of any alteration in the terms of such
policy or of the cancellation thereof. At Lessor's request, Lessee shall furnish to Lessor a certificate of insurance or other evi-
dence satisfactory to Lessor that such insurance coverage is in effect,provided,however that Lessor shall be under no duty either
to ascertain the existence of or to examine such insurance policy or to advise Lessee in the event such insurance coverage shall not
comply with.the requirements hereof. Lessee further agrees to give Lessor prompt notice of any damage to or loss of,the equip-
ment,or any part thereof. Lessee will at its expense make all proofs of loss and take all other steps necessary to recover insurance
benefits, unless advised in writing by Lessor that Lessor desires so to do,at Lessee's expense. Proceeds of insurance will be dis-
bursed by Lessor against satisfactory invoices for repair or replacement of equipment,provided this Rental Agreement not then be
in default. Performance by Lessee under this paragraph will not affect or release Lessee's obligations and liabilities herein else-
where provided.
9. The Customer agrees to pay all invoices promptly upon receipt of same.
10. The Customer shall not sublet any of the office equipment or furnishings nor assign this Rental Agreement or any rights thereunder
without the written permission of the Lessor.
11. The Customer undertakes to maintain the said office equipment and furnishings and surrender same to Lessor in good condition
immediately upon the termination of the Agreement, save for normal wear and tear.
12. No loss or damage to the equipment shall affect or impair the obligations of Customer hereunder which shall continue in full force
and effect. All repairs shall be made by the Lessor and the Customer shall be responsible for the payment of such repairs or in the
event of a service contract currently in force between the parties the terms of such service contract shall apply.
13. The term "this Agreement"as used herein includes any future amendments, modifications or supplements made in accordance
hereunder. THE CUSTOMER ACKNOWLEDGES THAT HE HAS READ THIS AGREEMENT AND UNDERSTANDS IT
AND AGREES TO BE BOUND BY ITS TERMS AND CONDITIONS AND FURTHER AGREES THAT IT IS THE
COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN PARTIES, WHICH SUPERSEDES
ALL PROPOSALS ORAL OR WRITTEN RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT,
14. The Customer has requested that this Agreement be prepared in English.
15. This Agreement shall be interpreted and enforced in accordance with the laws of the Province of ....Ontario
.....................................
16. This Rental Agreement shall enure to the benefit of and be binding upon the respective successors and assigns of the parties hereto.
0 E inc. Montreal: 5990 Cote de Liesse H4T 1 V7 Tel. (514) 342-5151
(Office Equipment Ottawa: 768 Belfast Road K1G OZ6 Tel. (613) 236-7281
Company of Canada) Quebec: 2025 Rue Lavoisier, Ste-Foy G1 N 41_6 Tel. (418) 687.5630
Toronto: 525 Denison St., Markham L3R 1138 Tel. (416) 491-9330
.1 ti s �� l i % ► i
41 676 A770 YIJ
SEVEN
YEARS OR TWO MILLION COPIES ,
-&Vk-Aria 0-H
for Plain Paper Copiers
O.E. INC. (Office Equipment Co. of Canada) agrees to perform preventive maintenance including drum
replacement, parts and labour for the original purchaser of the "Canon" Copier at the prevailing rate. `
O.E. INC. (Office Equipment Co. of Canada) agrees to provide all emergency service calls, replacement
parts and labour and to maintain the "Canon" Copier in proper working order.
s, ,t s
These services will be provided during normal working hours,Monday to Friday,8:30 a.m.to 4:30 p.m.,
holidays excluded.
s �a This warranty shall be in effect for the period of R years or 2 million copies whichever comes first,so long r
as the maintenance schedule and terms and conditions which follow are met. Failure to comply will
invalidate the warranty. s
TERMS AND CONDITIONS
Term of payment — net 30 days from receipt of invoice.
The machine must not be tampered with or adjusted by anyone other than an authorized O.E.INC.
' Service Technician.
If customer chooses to use toner other than that purchased from O.E.INC.the above warranty will
exclude the photosensitive drum and developing unit.
This service agreement supercedes.all proposals, oral or written, relative to the subject matter.
THIS WARRANTY PROGRAM EXCLUDES...
Any parts required for your"Canon" Copier due to negligence and/or abuse of the copier. Labour
' will be provided free of charge.
't Any maintenance required due to acts of God, fire, theft, vandalism, or willfull damage. s` '
After-hour, holiday, or weekend service.
This warranty is not transferable from the original purchaser of the "Ca n" Cop'eJ r.
The above warranty is chargeable at the following rate which is guaranteed for-A)*8) year from
the date of purchase. 9$g gg copj block only. as F`mayrho r
l�bOOi 000
INFORMATION FOR SERVICE (MANDATORY)
The Customer chooses to pay for after sales service as follows `
Per Call xxxx
Meter reading $ xxxx Monthly minimum, payable in advance quarterly
including xxx� r�copes/3tg�xxx gp�� r.0
Other charge
((
' Thereafter at prevailing government rates
15095 CANON PLAIN PAPER COPIERS
,
Date Name of Customer Corporation of the Town of
Deliver to: Municipal Offices Invoice to: Newcastle ,
Street Scugog Rd . Hampton, Ont . Street 40 Temperance St .
' Suite
Suite
^^ City Postal Code City Bowmanvi 1 1 P Ont . Postal Code L1C 1 .
Machine No. NP-8070 Tel. Attention o Lou A n. Birket rial '
CUSTOMER O.E. IN E il o. of Canada)
n SIGNATURE _ �(J a1ruerunc