June 26, 1998 

 To:Corporate Services Committee

 From:Commissioner of Corporate Services and Chief Financial Officer and Treasurer

 Subject:Disposition of Computers and Related Equipment

  Purpose:

 To dispose of surplus computers and related equipment no longer required for municipal use.

 Funding Sources, Financial Implications and Impact Statement:

 Surplus computer equipment is currently disposed of by Purchasing and Materials Management Division through public auctions or calling for competitive bids. The auctions are held twice a year (May and October) and are conducted by a licensed auctioneer contracted by Purchasing and Materials Management Division. Purchasing and Materials Management Division also processes sales quotations for the sale of computer equipment which cannot be held for the auction. Proceeds are forwarded to the contributing City department. Departments are responsible for any and all costs associated with the transportation of computer equipment to the auction site. The auctioneer guarantees the sale, therefore, no unsold computer equipment is returned to the City.

 Recommendations:

 That surplus computer equipment be provided equally to the Toronto District and Toronto Catholic School Boards. Remaining equipment not wanted by the School Boards will be sold by public auction or public sales.

 Council Reference/Background/History:

 The Corporate Services Committee on May 25, 1998, had before it a communication (April 21, 1998) from the City Clerk, advising that City Council on April 16, 1998, referred the following motion to The Corporate Services Committee:

 Moved by:Councillor Disero

 Seconded by:Councillor Jakobek

 "WHEREAS the City of Toronto often sells older computer equipment at auction; and

 WHEREAS the City of Toronto receives minimal funds for these computers at auction; and

 WHEREAS one of the target groups of Toronto City Council is youth and youth training;

and

 WHEREAS Toronto School Boards are constantly being cut back financially; and

 WHEREAS knowledge of the computer and technology industries is becoming more and more important in youth training;

 NOW THEREFORE BE IT RESOLVED THATToronto City Council offer any computer or computer equipment no longer required for municipal services/use to the Toronto District School Board and/or the Toronto Catholic School Board for their use."

 The Corporate Services Committee referred the aforementioned communication to the Commissioner of Corporate Services for report thereon to the meeting of the Corporate Services Committee scheduled to be held on June 29, 1998; and requested that such report include comments on what the practical use of these computers are if they are not year 2000 compliant.

As a result of the ongoing replacement of old computers with newer technology, the current inventory of surplus computers well exceeds 200 units. This number will continue to increase, as the new City is expected to replace 5000 computers over the next few years.

 On several occasions, surplus items have been donated by the City. In 1994, City donated surplus items to Peru which did not include computers. In 1997, the Government of Grenada paid $2,880 for 250 surplus computers and related equipment. Also, in 1997, the Technology Learning Centre (TLC) was given, in donation, an amount equal to the equipment sold to the Government of Grenada. All donations were approved by the former City of Toronto Council. The former City of Toronto distributed over 38 computers throughout Metro daycare centres.

 Frequently, both Information and Technology Division and Purchasing and Materials Management Division receive requests for donations of computer equipment and have advised the enquirer that all surplus items are disposed of through auctions or public sales and that they are welcome to purchase through those means. These enquiries have been from non-profit organizations who wish to ensure that this computer equipment is used for training or used by community associations.

 There have also been requests from City staff to purchase these surplus items for home use. The computers, which are being rendered surplus, are old computers with 286 and 386 processors which are incapable of running current software applications and are questionable for any use other than teaching the basic keyboard/mouse skills. Additionally, all surplus computers are purged of all application software, thereby requiring the recipient to purchase appropriate software.

  Although the hardware manufacturers of the surplus computers may deem the hardware Year 2000 (Y2K) compliant, the operating software and the embedded hardware operating systems are not compliant. By January 1, 2000, these computers cannot be guaranteed to be functional for any purpose.

 Comments and/or Discussion and/or Justification:

 Purchasing and Materials Management Division surveyed Canadian government municipalities and agencies and concluded that with the exception of the City of Calgary, none has a donation policy. The City of Calgary's Director of Purchasing can approve any donation under $100 in value. The Board of Commissioners must approve any donation exceeding $100. The majority of the former municipalities which form the new City, send their surplus computer equipment to the auction. A very small amount has been sold to charities or to employees. Due to the low value (approximately $1.00 to $40.00) of this equipment, an administrative fee would be charged to the employee. If the City was to start donating used computers and equipment, it would have to follow the procedures outlined in the proposed Municipal Grants Policy. Consideration would have to be given as to how recipients are screened as to their suitability. Additional staffing resources would be required to implement this activity.

 Conclusions:

 Without a method of prioritizing, the distribution of surplus equipment to non-profit organizations, it is recommended that the City provide equal access of surplus computer equipment to the Toronto District and Toronto Catholic school boards. Remaining equipment will be sold by public auction or public sales. This does not preclude the City from re-deploying computers from one location to another including agencies, boards, commissions and community centres on a first come first serve basis.

 Contact Name:

 Jim AndrewLou Pagano

Executive DirectorDirector

Information and Technology DivisionPurchasing and Materials Management

392-84212-7311

 CommissionerChief Financial Officer and Treasurer

Corporate Services