SUPPORTS ITEM NO. 2  
                                                      CS&B COMMITTEE AGENDA
                                                      JUNE 27, 1996        


                              ADMINISTRATIVE REPORT


                                                       Date:  June 13, 1996
                                                       File No. Crep055.cov


     TO:       Standing Committee on City Services and Budgets

     FROM:     City Clerk and Manager of Purchasing Services

     SUBJECT:  Tender No. 28-96-03 -
               Optical Scan Vote Tabulation System



     RECOMMENDATION

          THAT Council approve the award of a contract to Global Election
          Systems Inc. for the supply of 160 Optical Scan Voting machines,
          related equipment and software, at a cost of $798,000, plus the
          7% Goods and Services Tax (less any municipal rebate received)
          and the Provincial Sales Tax.  Source of funds to be a loan from
          the Capital Financing Fund, with repayment from the City Clerk's
          Department future operating budgets, beginning in 1997.


     COUNCIL POLICY

     The policy of Council is to award contracts for the purchase of
     equipment, supplies and services that will give the highest value
     based on quality, service and price.

     Contracts with a value over $200,000 are referred to Council for
     award.


     PURPOSE

     The purpose of this report is to recommend the purchase of a new
     Optical Scan Voting System from Global Election Systems Inc. to
     replace the City's existing voting equipment, for use in the 1996
     General Local Elections.

     BACKGROUND

     In a report dated February 7, 1996, the City Clerk advised Council of
     concerns related to the poor reliability record of the City's existing
     automated voting equipment, based on the experience of its use during
     the last three general local elections (1988, 1990 and 1993).  The
     City Clerk recommended, and Council approved, that the existing system
     be replaced for use in the 1996 General Local Elections.

     The City Clerk and General Manager, Corporate Services were instructed
     to report back to Council to seek final approval of the proposed
     vendor, acquisition costs and financing of the recommended purchase.

     There are currently only two major companies which market and support
     optical scan voting equipment in Canada:

        Business Records Corporation, based in Dallas, Texas; and
        Global Election Systems Inc., based in Vancouver, BC.

     Both companies were contacted and invited to submit bids to replace
     the City's existing equipment.


     DISCUSSION

     Tenders were received from the above noted companies by the  Manager
     of Purchasing Services on May 1, 1996.  Bids were submitted as
     follows:

     Business Records Corporation:   $761,760.00
     Global Election Systems Inc.:   $790,120.00 (Plus $7,800 for
                                                  related optional
                                                  equipment)

     Both bids provide for the acceptance of the City's existing automated
     voting equipment in trade.

     A copy of the tabulation of bids is on file in the Purchasing Services
     Division.  The Goods & Services Tax (less any municipal rebate
     received) and the Provincial Sales Tax are in addition to prices
     quoted in this report and in the tabulation.

     A committee, consisting of a Buyer from the Purchasing Services
     Division, Deputy City Clerk, Senior Elections Clerk and a Senior
     Technical Specialist from the Information Services Division evaluated
     the bids and respective equipment based on the criteria set out in the
     original bid documents.  The evaluation criteria considered were as
     follows:

        - the equipment: reliability, design, ease of preparation,
          maintenance and testing, ease of operation, ease of transport and
          storage, ease of software set-up, ease and flexibility of ballot
          design, report feature and adapt-ability to future needs;

        - the company: reputation and experience, technical credibility,
          after sales service and support, financial resources and
          stability, and environmental responsibility; and

        - costs: initial purchase and on-going support costs.

     The ratings of the criteria were based on a 1 to 5 scale, 1 being
     unacceptable and 5 being superior, for a maximum of 100 points.  In
     the final evaluation, Global Election Systems received 83 points,
     Business Records Corporation received 64.5 points.

     The Evaluation Committee rated the Global Elections Systems equal or
     superior to the Business Record Corporation system in all areas
     considered.  While both systems were determined to be equally
     reliable, the Global Elections System was considered to be superior in
     the areas of unit design, ease of preparation, maintenance and
     testing, ease of operation by election staff and adaptability to
     future needs.

     Reference Checks

     An extensive and detailed reference check was conducted of the
     references provided by the two bidders, as well as other cities known
     to have had experience working with the proposed equipment.  All
     references contacted regarding the Global Elections System were
     positive, for both equipment and support services.  Responses from the
     BRC references were mixed, with some indicating they were dissatisfied
     with the service and equipment provided.  Some references currently
     using the Global Elections Systems equipment had previously used BRC
     equipment and had chosen to switch to the Global Election Systems due
     to design considerations.

     The evaluation documents are on file in the Purchasing Services
     Division Office.

     Conclusions

     Although the price to purchase the Global Elections Systems equipment
     is approximately $28,000 higher than the bid submitted by Business
     Records Corporation, the Evaluation Committee has concluded that the
     Global bid provides the highest value to the City and will better meet
     the City's current and future election administration needs.

     The Committee therefore recommends the acceptance of the bid from
     Global Elections Systems Inc. for the supply, installation and support
     of their Optical Scan Voting Equipment for use in the City's 1996
     General Local Election, at a cost of $798,000, plus applicable taxes.

     The Comptroller of Budgets and Research advises that the funds for
     this purchase, if approved by Council, will be provided in the form of
     a loan from the Capital Financing Fund (Solid Waste Capital Reserve). 
     Repayment will be made from future City Clerk's Department operating
     budgets starting in 1997, at a rate of approximately $111,000 per year
     (dependent upon prevailing interest rates).



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