HomeMy WebLinkAboutADMIN 65-86 TOWN OF NEWCASTLE
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t REPORT File #
Res. #C 4 7
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DING: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
DATE: SEPTEMBER 2 1986
REPORT #: ADMIN. 65 - 86 FILE #:
SUBJECT:
ACQUISITION OF TELEPHONE SYSTEM -
SINGLE PAYMENT VS SEVEN YEAR PAYMENT PLAN
RECOMMENDATIONS:
It is respectfully recommended that the General Purpose and Administration
Committee recommends to Council the following:
1 . That report ADMIN. 65 - 86 be received; and
2. That Council adopt the single payment plan for the acquisition
of the SX 200 Telephone System from Bell Canada and authorize
payment of $30,481 .00 for the system and charge the cost to the
Administrative Facility Account #7007-0405-X-9.
BACKGROUND AND COMMENT:
Council , at the meeting of Monday, July 28th 1986, adopted the recommendations
in report ADMIN. 60 - 86 and, by amendment directed:
"That the Clerk-Administrator report to the next
General Purpose and Administration Committee meeting, the
merit of a 7 year purchase plan as opposed to a one time
purchase payout."
Since the submission of the earlier report, Bell Canada have as a result of
(Cit
ADMIN. 65 - 86 -2-
additional alterations reduced the overall cost of the equipment
from $32,268.00 to $30,481 .00. Therefore, the single payment of
Tier "A" costs (a one time payment) would be $30,481 .00. The cost over
seven years would be $7,007.00 per year for a total of $49,049.00.
The cost of carrying the account for seven years would be ($49,049.00 -
$30,481 .00) = $18,568.00.
Staff, in preparing the estimates for the new administrative facility
budgetted $65,000.00 for telephone services. When reporting on
telephone system acquisition, the single payment option was not given
any consideration. Rather, we looked at the past practice of monthly
billings and recommended that it continue at a significantly reduced
monthly payment rate. In retrospect it is appropriate to consider
the single payment plan and avoid paying carrying charges, and it is
so recommended.
Respectfully submitted,
David W. Oakes, Clerk-Administrator
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