HomeMy WebLinkAboutTR-002-00
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ON: TR-D2.DD llEPORT #6
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
REPORT
Report #:
TR-02-00
FILE#:
r<.:(./It .
File # /~.'3, -'11,4-
Res. # C .-;:c<j~oo
By-law # ':<000" {) ;)'
Meeting:
Council
Date:
January 10, 2000
Subject:
OUTSOURCING OF TAX BILLS
RECOMMENDATIONS:
It is respectfully recommended to Council the following:
1. THAT Report TR-02-00 be received;
2. THAT the quotation for the printing, folding, inserting and mailing of tax bills from
Cover-All Computer Services Ltd., Markham be accepted;
3. THAT pending satisfactory service from Cover-All Computer Services Ltd., the
existing mailing, folding and inserting equipment be sold as surplus equipment in
accordance with the Purchasing by-law;
4. THAT the attached By-law, marked Schedule "An authorizing the Mayor and Clerk to
enter into the necessary agreement be approved.
BACKGROUND AND COMMENT
The current process for the issuing of tax notices is that the various pieces of printed
material are ordered and delivered to the Municipality. Staff, then print the tax notices,
fold and insert into the envelopes, process required postage, and mail.
The equipment used for the process was purchased in 1990, with a minor upgrade in
1995. After 9 years this equipment has now reached the stage where it can no longer
provide the Municipality of Clarington with the reliability and dependability it requires.
The cost to replace this equipment is $22,650.00 plus taxes.
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REPORT NO.: TR-02-00
PAGE 2
Historically, each component of the tax bill has been ordered separately, thereby
substantially increasing the price. The summary below shows the approximate
expenditure for printing of the tax notices, envelopes and inserts for two separate
mailings.
.
50M Tax Bills, envelopes & inserts, 25M ordered separately, $14,242.00
for two mailings per year
20,000 Reminder Notices printed in house on letterhead and
envelopes for mailing
$1,550.00
TOTAL
$15,793.00
All taxes extra
. A proposal to outsource the entire tax notice, from its design stage to printing, folding,
inserting and mailing is being recommended by Staff.
A quotation has been received from Cover-All Computer Services Ltd. based on
purchasing a quantity of 50,000 tax notices, envelopes and inserts at one time. Cover-
All will print, fold, insert and deliver to Canada Post for mailing. The full outsourcing of
approximately 50,000 tax notices, 20,000 reminder notices and 5,000 receipts to Cover-
All Computer Services Ltd. will cost the Municipality $15,582.00.
The Municipality would be required to supply to Cover-All a magnetic tape containing all
tax information and a cheque for the required postage.
For a further proposed saving of approximately $3,000.00 annually, Cover-All can pre-
sort our client mailing list into Delivery Mode Presort which should allow 80% of the tax
bills to be rated at 36.5 or 41.0 cents per envelope. This service would cost $500.00
per mailing.
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REPORT NO.: TR-02-00
PAGE 3
Cover-All Computer Services Ltd. is a very reputable and reliable company. They are
presently outsourcing for various cities; a list of references is attached as Schedule "B".
Cover-All Computer Services Ltd. have a very secure print shop, excellent turn around
and scheduling and a sample run is provided for approval before final printing. A
Confidentiality Agreement is required and is attached to the By-law (Schedule A) for
information purposes.
There are very limited reliable service providers in this area, and the cost is relatively
low, consequently competitive bids were not solicited for this service.
ADVANTAGES TO OUTSOURCING:
. Allows existing staff time to be utilized for essential duties such as a focus on
collection of arrears.
. This will decrease outstanding arrears balances.
. No requirement for new equipment and expensive lease payments
. Expensive maintenance contracts not required for mailing equipment
. Relieves space in basement by eliminating bulky and expensive equipment
that is historically used only twice yearly
. Reduces potential for RSI injuries by eliminating need for staff to perform the
folding, sorting and mailing function.
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REPORT NO.: TR-02-00
PAGE 4
Annual Estimated Savings if Outsourced:
Lease and updating of equipment - purchase $22,650.00
Lease $530.00/month X12 months
Service Maintenance on Equipment no longer required
$142.00/month X 12 months
Current method - materials only $15,793.00
$1,740.00
Outsourcing tax notices, reminder notices and receipts
(Material and Labour) $15,582.00
Savings
Proposed saving on postage by presorting
SUB TOTAL
Estimated Labour Savings
TOTAL ANNUAL SAVINGS
$210.00
$3,000.00
$11,310.00
$4,200.00
$15,510.00
Any commitment with Cover-All Computer Systems Ltd. is based on a 12 month term
and may be cancelled due to non-performance, upon thirty days written notice, with an
agreement to buy back any inventory Cover-All may have on hand at that time.
Staff have reviewed the proposal received from Cover-All Computer Systems Ltd. and
concur with the recommendation to outsource the tax bills and that pending satisfactory
service, that the mailing, folding and inserting equipment be sold as surplus equipment
in accordance with the Purchasing By-law.
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REPORT NO.: TR-GZ-GO
PAGE 5
Based on a recent survey in the Region of Durham on the outsourcing of the bills, the
results are detailed below:
Region
Town of Ajax
Town of Whitby
Town of Pickering
City of Oshawa
Township of Brock
Township of Scugog
Township of Uxbridge
Method
Outsourcing is part of their Banking Agreement
Outsourcing is part of their Banking Agreement
Outsourcing is part of their Banking Agreement
Print bills in house, outsource folding and stuffing
Billing done in house
Billing done in house
Billing done in house
This report has been brought direct to Council as. there is a lengthy time lag to order blank
bills to produce tax bills manually should Council decide against the outsourcing
alternative. Proposed tentative tax instalment dates for the Year 2000 are February 25,
April 19, June 21 and September 20.
Respectfully submitted,
Reviewed by,
o ~=0-L
Franklin Wu, M.C.I.P.,R.P.P.,
Chief Administrative Officer
Marie Marano, H.BSc., AMCT.,
Treasurer
MM*LAB*km
SCHEDULE "A"
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
BY-LAW 2000-
Being a By-law to enter into an agreement between the
Corporation of the Municipality of Clarington and Cover-All
Computer Services Ltd., Markham, Ontario, to outsource the
tax bills.
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON HEREBY ENACTS
AS FOLLOWS:
1. THAT the Mayor and Clerk are hereby authorized to execute, on behalf of the
Corporation of the Municipality of Clarington with the Corporation Seal, an
agreement between Cover-All Computer Services Ltd., Markham, Ontario, and
said Corporation; and
2. THAT the contract attached hereto as Schedule "A" form part of this By-law.
By-law read a first and second time this day of
, 2000.
By-law read a third time and finally passed this
day of
, 2000.
Mayor
Clerk
e 1G 98 ,9: 32 jlJVJ ; CG'lER ALL :CIREC':' RESPOnSE
4169409317;# 4/ 7
AlTACHMENT TO
SCHEDULE "A"
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CONFIDENTIALITY AGREEMENT
COVER-ALL
THIS AGREEMENT is made as of June 10, 1998 by and between
MUNICIPALITY OF CLARINGTON (hereinafter "Mun/Clar."), a corporation having an
address at 40 Temperance Street, Bowmanville, Ontario, L1C 3A6 and COVER.ALl
DIRECT RESPONSE SYSTEMS LTD, (hereinafter "Cover-All"), an Ontario corporation
having an address at 80 Gough Road, Markham, Ontario, L3R 6E8,
WIT N E SSE T H:
WHEREAS, Mun/Clar, and Cover-All may from time to time find it necessary to
disclose to each other certain proprietary and/or confidential business and technical
information for purposes of discussing the possibility of each performing certain
services for the other (hereinafter the "Proposed Services").
NOW THEREFORE, the parties hereto agree as follows:
1, DEFINITION, "Confidential Information" shall mean all methods, technology,
trade secrets and other accumulated technical knowledge or proprietary
information including, but not limited to, information regarding business,
business plans, business strategy, technology, products, production methods,
marketing plans, marketing strategy, research and development activities,
designs, proprietary matters or any other information.
COVER.ALL COMPUTER SERVICES LTD,
80 Gough Rood, Mark,ha'Tl, Ortario DR 6~8 Tel.. 905/9.40.1919 Fax: 905/940-2107
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6~l8~98 ,9: 32. .AI'.1 ; COVER ALL DIRECT RESFONSE
4!6940Q;.'l7; # F.//
2. USE OF CONFIDENTIAL INFORMATION. Each party shall use the other
party's Confidential Information only for the purposes of performing the
Proposed Services.
3. DISCLOSURE RESTRICTIONS. Each party agrees to: (a) hold the other
party's Confidential Information in strict confidence: (b) disclose the other
party's Confidential Information only to its employees to whom knowledge is
required and to the extent necessary for its proper use in accordance with this
Agreement; (c) require that its employees hold the other party's Confidential
Information in strict confidence; and (d) take steps to prevent the accidental or
unauthorized disclosure of the other party's Confidential Information.
4. EXCEPTIONS. Confidentiallntormation shall not include and this Agreement
shall not apply to information: (i) which one party can demonstrate was
already known to it prior to the date it was received from the other party; (ii)
which, at the time of disclosure or later, is published or becomes otherwise
available to the general public as part of the public domain through no act or
failure to act on the part of the receiving party and without breach of this
Agreement; or (iii) which the receiving party can demonstrate came into its
Possession from third parties who have a bona fide right to make such
information available without restriction.
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0-10-98 9 32 .'i.M ; COVER-.ALL :CIREC'::' RESPONSE
4168409317;# B/ 7
5, OWNERSHIP OF CONFIDENTIAL INFORMATION. The parties agree that the
disclosure of Confidential Information under this Agreement creates no
ownership or license to the receiving party and that the disclosing party
reserves all patent, trade secret and other proprietary rights it might have.
6, SEVERABIUTY, In the event any portion of this Agreement shall be found
unlawful, unreasonable or invalid by a court of competent jurisdiction. the
parties agree to accept as binding any such lesser restrictions which such
court shall deem reasonable,
7, RETURN OF CONFIDENTIAL INFORMATION, Each party shall return to the
other party upon written demand any and all written documents entrusted to
the recipient and shall not copy or reproduce in whole or in part any
documents without the disclosing party's permission,
8, TERM OF AGREEMENT. The tenn of this Agreement shall be one ( 1 ) year
from the date first stated above,
g, SURVIVAL. The parties' obligations respecting nondisclosure and non-use of
Confidential Information of the other received during the tenn of this Agreement
shall survive the termination of this Agreement,
(f;
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10. GOVERNING LAW. This agreement shall be governed by and construed in
accordance with the laws of the Province of Ontario.
IN WITNESS WHEREOF, the said parties have caused this Agreement to be
executed by their authorized representatives.
COVER-ALL DIRECT
RESPONSE SYSTEMS L TO
By
By
Name ----N\ G\i"lnlll~
(please print)
Name
(please print)
Title ~~. ".<cI.M~",^",,\~
Title
Date Ju...."" u; I <tf(
Date
cP
6 5 98
3: 31 PfYI ; COVER-ALL D:RECT RESPOJ.,SE
41694003:7;' Z/ 2
. ,
SCHEDULE "S"
Production and MalJing of Parking Infraction Payment & Trial Notices
September 1, 1998 through August 31, 2000
REFERENCES:
The following references for whom this firm provides similar services as to those proposed may be contacted
for further information:
Name and Address of Reference Telephone Type of Commente
Company Name Number Service
Provided
4l6/
City of Toronto R. Jorgem 39.2-896 Welfare very pleased
on Notices with service
905(
City of Bob Has tee 896-5234 Tax Bills Very pleased
Mississauqa O(S with serivce
notices
905/
City of Henry 874-220 Tax Bill! Very pleased
Brampton Coffey with service
905/
City of Arthur 832-858 Tax Bill Very pleased
Vaughan Welsh X8268 with service
416/
City of Ed Martin 394-832 Tax Bill! Very pleased
Etobicoke . with service
Town of Sam Jones 905/
Caledon 584-227 Tax Bill very pleased
with service
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