Disposition of Computers and Related Equipment
The Corporate Services Committee recommends the adoption of the following joint report (June26, 1998) from
the Commissioner of Corporate Services and the Chief Financial Officer and Treasurer, subject to amending
the Recommendation embodied therein to read as follows:
"It is recommended that the Commissioner of Corporate Services post for a period of two months, any surplus
computer equipment in order to allow individual staff members to purchase same if they so choose; after which
the surplus computer equipment be provided equally to the Toronto District and Toronto Catholic School
Boards; and remaining equipment not wanted by the School Boards, be sold by public auction or public sales.":
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:
It is recommended 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 THAT Toronto 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 $2,880.00 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 $100.00 in value. The Board of Commissioners must approve any
donation exceeding $100.00. 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