HomeMy WebLinkAboutTR 21/98; 8� µ�
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REPORT TO COUNCIL
FROM: dillis A. Paterson DATE: June 3,1998
Director of Finance & Trcasurer
REPORT NUMBER: TR 21•98
SUBJECf: Proposal to Outsource the Distnbution of Tex CeAi6cates
RECOMMENDATION:
That Report No. 21/98 be received; and
Thnt outsourcing the distribution of Tax Certificates be epproved; end
Thut authority to execute lhe Properly Link Scrvice Agrcement between Sy�wmics Inc. nnd the
Corporation of lhc Town of Pickering be epproved; nnd
Tl�at thc fees for Tax Certificates be incrcased to S50.00.
ORIDIN: Repon to Council IS I/97
AUTHORITY: N/A
FMANCIAL IMPLICATIONS: Purchase of PC and Uniu Scrvcr - 56,000, unbudgeted and to be
ofTset by incrwsed rovenucs.
Based on thc 1997 twelvc month actunls thc Town should renliu a rcvenuc incrensc of
npproximotely �33,000. These additional revenucs wiA be retlected in the nceounts of tha Finance
` Department.
EXECUTIVE SUMMARY:
The Town currendy prepares the Tax CeAificates in housc for a fee of 530.00. It is felt thet this
service can be better deGvcred through Synemics Inc. since tbey have the capabiGtics of
responding within 24 hours of a rcquest. This in fect, will free up stali' currently assigned to this
task to concentmte on the collection of tmc errcars and respond to tax enquiries.
BACKGROUND:
In uvly 1997 tha Town wns approached by 5ynnmics Inc. to provide the service of clistributing
Tax Certiflcates.
Simply spcaking, upon receipt of a request 6nm s Luw Smy Synnmics will retrievy; the requested
informaUon by use of a wide arca network to eccess files downloeded by the Town to a PC
locotcd el ihe Town. After the infor►mtion is cetricved, Synamics will automaticully prcpnrc end
send a facsimile to the Law fum
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Report lo Cowrcil TEt 21•98 . Detc: June 3,1998
Subject: Proposal to Outsource thc Distribution of Tau CcrUfxatea pnge 2 6 7
All fees erc coikcted by Synarnics end the Town rcceives their proportionete aliare on a timely
bavis.
Uti6zation of this service ellows Lawyers closing on msl estatc deals to obtain the most up-to-
dete information within a 24 hour tumaround.
As disuss�d in the ettached repoK which provided thc ratiomk for outsourcing, not only wiU stafl
ba available to better serve the needs of our customers, the Town will bene6t by savings in stafi'
time, stationary end postage costs, end of course revenue will see en increasc,
There are curnntly 8 other municipalities signed up with Synamics and at least 20 moa arc
working towards outsourcing with this company,
The agreement has been reviewed by thc Legul Depariment and will be amended to milcct the
dete of implementation, yet to be detemiined. Both the Finence Department nnd ]nfortmtion
Systems suppoA this proposaL
ATTACHMENTS:
1. CopyofReport IS 1/97
2. Copy of Servicc Agmment
Prepered By:
Inge Bertey
QAP:dk
Attachments
Copy: Clenerel Muneger
Approved / E��dorsed By:
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Qillis A. Peterson
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• , � ATTACHMENTII�TOREPOpTNL�-98'
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~ REPORT TO COUNCIL
FROM: Inga Berrcy, Acdng Treasurer•Collector DATE: May 30, 1997
!on Storms, Mannger lnformation Systems
REPORT NUMBER: IS 1/97
SUBIECT: Proposal to outsoutce ihc disitibution of Tax Certificates.
RECOIvIIvIENDATION:
Tttet Council udopt tha proposal to steR the process of outsoutcing the distribution of Tax Certificates.
This should result in lower oveml! cosls for 1he Town as a result of less stnff involvement, additionnl
rovenue und improved customer service.
ORIGM:
Trensury
Infortnntion Systems
FINANCIAL IMPLICATIONS:
The startup cost to lhe Town would Ix one unix server costing 56,000.00. All other costs, including
communications, would be covered by Synnmics Inc., the supplier of lhe service. The unix server has
not been budgeted for in 1997 but it is felt the additional rcvenue will offset the cost.
The curtent charga levied by the Town for a Tax Certificate is S30.00. 'fhe mte of charge levied by
Synnmics to produce a Tmc Certificate on behalf of ihe Town wauld be as follows:
Number of
�ertificntesProduced ChazggperCertificate
� - soo a2o.00
501 - 1,000 ' 510.00
�,00t - z,soo a�so
z,soi - s,00a aa.00
s,00i - s2.00
]t is proposed the cherge for a Tax Certificate be increesed to S50.00, This eppenrs to be the slnndnrd
rate of charge for ihosc municipalides that have signed letters of intent with Synamics, including Ajex
and Claringtoa To eliminate a two•tier rate, those customers who would contact the Town directly for a
Tax Certificate wauld also be clwged 550.00. The new rate would increase the Town's rovcnue by
520.00 for every Tax Certificate produced by the Town. For ihose Tnn Certificates produced by
Synamics on behalf of thc Town, the Town's nvenue would incrcasc on an ascending rete of scalc once
the 1'irst 500 had txen produced. The Town's cost to grnerate t�c Tax Cerilficates will also hnve becn
rcduced,
ARer a phnse•ln pedod of twelva to elghtan months, nll Tax Certificates would be produccd by
Synamics.
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h ` ; - , ATTACHMEN7 ;;�_ TO REPORTN,�
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BACKGROUND;
Continuing the process oF revlewing and evaluating Treasury's computer systems, both Treasury end
Informetion Systems detertnined that betng a periphewl aervice, the disiribution of Tax Certificates
should be autometed, One option idendfied was ihe issuance of Tox Ceriificates through the Town's
nowly c�eated wob site. This opdon was slattd to be invesUgeted further during 1998. On Mey 13, both
Treasury and Infortnation Systems met with Synemics to understend moro fully ihe servias they
provided. Synamics' proposal involved heving customers, which mostly involve lew o�ces, contact
Synamics by meens of an 888 number and submitting lhc request directly to them. Law offices could
also contact Synamics by fiuc end tluough the intemo� If contacted by phone, the Tux Certificate would
be faxed back to the lew o�ce within thc hour. Other means of contnct might involvc a slightly slower
rcsponse. 7'he quick msponse and the reduction of clericel work at the Inw o�ce should more Uwn
encourage law ofiices to willingly utiliu this service.
On a nightly basis Informntian Systems ihrough nn automated process would download pertinent
informadon to the unix server. This would provide Synnmics with t�e up-to-date infortnation requiad.
Utilizing Synamics would eliminate the need for development and maintenance of an in-house system.
This proposal is fully supported by both Treasury end Infonnntion Systems.
(nga Bertey !on Stortns
Acting Treusurcr-Collector Manager InCormation Systems
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THIS PROPERTY LINK SERVICE AQREEMENT mode ea of thfa 28th dey o} februery,
1998
BETWEEN: SYNAMICS INC., a company fncorporated
purauent to the lawa of Onterio, having e place of
buslness at 9226 Leslie Street, Unit 7, Richmond
Hill, Ontario, L48 3H8
(hereinafter called "Synamics"1
AND: THE CORPORATION OP THE TOWN OF PICKERINO,
a MUNICIPALITY incorporated pursuant to the laws
of Ontario, having a place of bus(ness at One The
Esplanade, Pickering, Ontario 11V BK7
(hereinafter called "Customer")
WHEREAS Synamics is a telecommunications service bureeu operator;
WHEREAS Customer wishes to enter into a Property Link Service Agreement with
Synamics for the operation oi the Property Lfnk Service;
WHEREAS the pertfes wfsh to enter (nto this Property Link Service Agreement subject
to the terms and conditions hereinafter set torth.
NOW THEREFORE, this Agreement witnesses that fn cansideration oi the premises
and the covenants and egreements herein set out and other good and valuable
consideratlon, the receipt end sutticiency of wh(ch are hereby acknowledged, it is
agreed by the parties hereto as followa.
1. �
1.1 The term of thia Agreement ehall commence on March 1, 1998 and
shall continue in etiect until its termination under Section 8.
2. pel(verable�
2,1 Synamics agrees to deliver the Property Llnk Servfce ("Application"1, in
eccordence with the terms and conditions o( this Agreement and in
Synamics Inc.
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'accordenco with the functionel apeclt(cet(one ("Functionel
Speciticatfone") en outline of which le ettached heroto as Schedule A
which shall be prepared to gu(de the Appi(cadon.
2.2 Synamica egreea to deliver a sealed copy on tepe of the moat recent
source code for the Applicatlon to Customer upan the complet(on of the
Applicatlon. This tepe is to be held by Customer and the tepe will
become the property of Cuetomer in the event this agreemen2 (s
terminated under Section 8.3 and Cuatamer electa as appliceble under
Sectfon 9.2.
2.3 Synamics agrees to run this Applicat(on on Synamlcs' service bureau
with 24 hour/7 dey per week aveflability as required (n the Functionel
Specifications.
2.4 Synamics' services shall be more precisely defined fn the Functional
Specitications prepared for the Applicetion and shall include but not be
Iimited to those activities attached hereto as Schedule A.
2.5 In the event that the Application tails to perform in accordance with the
Functional Specifications, Customer shall torthwith notify Synamics and
Synamics ahell, within sixty (80) days from said notification, modity or
improve the Application at Synamics' expense, to insure that the
Application as a whole performs in accordance with the Functiona�
Specificatione. •
3. Moditicationa and chena��
3.1 Synemics la developing a atandardized service for the uso of multiple
municfpelities. Customer mey request any additions, modifications,
changea, or enhancements to the Application in order to customize
Application specifically for the needa of Customer. A charge, to be
agreed upon by Synam(cs and Cuetomer mey be levied for any of these
additiane, moditications, changes, and enhancements. Functianel
Speciflcatfons tor the Applicatfon will more cleariy detine charges if
requ(red.
3.2 Synemica agrees that the prices set out in Attachment A to the
Functional Speci(ications ahall not be cherged without prior written
consent of the Customer.
4. e e
Synamics Inc.
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4.1 Synemics will be reeponeible tor collecting eny cherpea to be lev(ed by
Cuatomet lor the uee of the Applicatlon by user� in accordence with the
ratea and chergae epecified in the Funct(onal Specificatlone.
4.2 Synemics will deduct fta feee irom charges levied to usera and remit the
rameinder to Customer In eccordence with the retea and cherges
specifled In the Functional Specificetlons and in eccordance with the
time schedule apecified in the Functionel Speciticationa.
4.3 Customer wlll co�operate with Synamics to assirt in the collection of
any fees levied to usora for wh(ch users heve not paid in tull provided
thet the customer shall not be required to pay any out of pocket
expenses or to incur any legal fees or disbursements when assisting
Synamics in the collection of any fees levied to usas.
4.4 The customer agrees to assist in the markeUng ot lhe Properry Link
Service to members of lhe legal cammuniqr operaUng within the
geograph(c limits of the Customer, provided lhal the Customer wilt not be
requlred to Incur any oul of pocket expenses (n Iha! regard, and prov(ded
fuAher that such marketfng will be subJect to lhe Customers exisUng
policles and any existing conlracts between lhe aslomer and any lhird
part(es.
6. a e
5.1 Synamics shall be responsible for the collection and payment af all texes
based on aervicea pertormed pursuent to this Agreament. Taxes shall be
charged to the users (n addition to the fees set out h Attachment A.
B. Termtnetton
8.1 Customer mey terminate thia Agreement at any time upon one hundred
end eighty two 1182) days prior notice to Synamics.
8.2 Cuatomer mey cancei the Agreement at any time upon thirty (30) days
prior notice to Synamics ft the Application fails to perform substantially
in accardance with the Functional Specifications for a period exceeding
thirty (30) deys.
8.3 Customer mey terminate thfs Agreement in the event of any tilinp by
Synamics of e voluntary petition in bankruptcy; the involuntary
commencement agalnst Synamics of any proceedings under the
Synamics inc.
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Bankruotcv Act fCanedel or under eny prov(nciel lew rolating to
inaolvency or benkruptcy }rom the Institution thereof; adJudication of
Synamica ee a bankrupt purouent to an irnoluntary petition; the
'appolntment by eny competent Court hav(ng Jurlsd(ct(on oi a temporory
or pormanent receiver, trustee or other oificer having s(milar powers
over Synamica or Synamica' businesa, irom tha appointment date
thereof; any levy under attachment, garnishment, execution or any other
similer proceas on Synam(cs' busineae or a substant(al part of ita aesets
which fa not wkhin aixty I60) days vacated or removed by payment or
bonding.
8,4 Cuatomer may terminate this Agreemant in the event that this service
resulta (n any negative budget impact on the Town of Pickering as
directed by tha Council of the Town of Pickering.
8.4 Synemics will remove all equipment owned by Synamfcs which may
reside on Customer's site upon termination of this Agreement.
8,6 Synem(cs may terminate this Agreement at any time upon one hundred
and e(ghty two (1821 days prior notfce to Customer.
7. Limitetton of Ilebtiiri
7.1 Synamics shall (n no event be liable for any indirect, speciel, or
consequentiel damages (nciuding businesa or economic loss resulting
from or arfsing irom the periormance or non-performance of their
obligatfone hereunder except where such damages are caused or
contributed to by the negl(gence oi Synemics, its agents or employees
or the meliunction ot its equipment.
7.2 Synam(ca ahall not be lieble for eny loss, damages or delay or non•
periormance caused by eccidenta, lobour difficulties, acts of nature,
government act(on, Force mejeuro event, or by any other cause which is
unavoidable or beyand their reasonable cantrol.
7.3 Synam(cs ahail keep In force at all times during the term of this
agreement a Commerciel General Liebility Insurance Policy and Motor
Vehicle Uebility Insurance Policy, where appiicable, in an amount of no
lesa thnn One Mili(on ($1,000,000) Dollers inclusive or higher as mey be
requested from time to time by the Town's Solicitor. Upon execution of
this Agreement, Synemfca shell lodpe with the Town a Certificate oi
Insurance in a form approved by lhe Town's Solicitor duly completed
and executed by ita (nsurera.
Synamics luc.
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8, Confidmtl�l end arooriet�rv In}ormatlon
8.1 Each party ecknowledpes and apreee thet amr and ell information
emanatinp irom the other's bueiness, leerned by Synamics or Cuatomer
In periormfng thia Agreement is confidentiel and proprfetery fntormation.
Each party egreea that k will not, during or after the term of thfs
Agreement, permit the duplication or d(sclosure ot any such confidential
and proprietery (niormatian to any person (othar than an employee,
agent or representetive of the other party who must heve such
information tor the pertormance o( its obiigetians hereunder), unless
such dupl(cation, use or disciosure is speclticaliy authorized by the other
party or by statute. Coniidential and proprietery informatian is not
meant to inciude any infarmation which, at the time of disclosure, is in
the public domein.
9. Ownershlo
9.1 Synem(cs shell have ell ownership rights, including copyright, in all
software created by Synemics for the Application.
9.2 in tho event that this epreement (s terminated by virtue of cleuse 6.3,
Customer may elect to purchase a non•transferable, limited term license
for any software created for or purchased for use in the Application for
a fee of 910,000.
IN WITNESS WHEREOF the pertfes horeto have executed this Agreement as o( the
date hereof.
SYNAMICS INC. CUSTOMER
Per• Per
Prea(dent
Per
Synamics Iac.
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