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HomeMy WebLinkAboutTR 21/98; 8� µ� WA�� � F 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 >:. � , ''' � � , � 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: � ' Qillis A. Peterson r: �. : 4 �` f � • , � ATTACHMENTII�TOREPOpTNL�-98' 68 �N OR p� � ~ 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. ���� . •� . }�, . ', �� � h ` ; - , ATTACHMEN7 ;;�_ TO REPORTN,� 69 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 fJ. ' t :':: . ��.,t` . .. . . ,F, . . . . . � . . , AT7aCNMEr 2 � ,i:?nRT a�� i-9rr ,7Q 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. I � . ' � � REPORTN� ,t,, ' : 71 '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. 2 r::: , ... '_' ...,� .,. . , ... ..t F . . . . . . � . . '•li �NiM_ � t,: � �72 , : 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. 3 , � � —' — — �� � _ ; -- =" { � � - ";. . . ar7Jr��- . . ^^TM . , �---,�,3, 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. 4 ;s . _ � , �� ., . , "� !� A1TApN�MN_TO NEPQNT N� 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. S r ; i� �� ` � , _ , _ _