AgdaPkt 2014-09-08 Closed and Joint with SA

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7.1.D. - Page 3 Comparison of Conventional Flushing and NO-DES Conventional NO-DES Gallons Saved per Year 0 31,200,000 Lost Water Cost per Year $134,700 nla Equipment Cost per Year $14,300 $37,250 Labor Cost per Year $114,000 $114,000 Total Operating Cost per Year $263,000 $ 151,250 Return on Investment (Years)* n/a 3.2 * Return on investment based on cost of NO-DES truck and purchased water saved at current wholesale water rates. Sole Source Purchase Request: While conducting extensive product research for an alternative to conventional water system flushing, staff did not find any comparative options that proved as effective in maintaining the water system while also conserving millions of gallons of water. Staff also determined that NO-DES Inc. holds a US Patent (US Patent # 6,627,089 B1) on the method and process, and exclusive rights for the manufacture and distribution of NO-DES Equipment. Therefore, the NO-DES equipment and system are of a very unique nature and only available from NO-DES as a sole source purchase. When buying equipment, the City follows certain purchasing provisions provided in Article VII of Chapter 2 of the Redwood City Municipal Code (Purchasing Ordinance). The Purchasing Ordinance provides for competitive bidding so that the City may get the best possible benefit. However, the Purchasing Ordinance recognizes that in certain situations, alternative procedures may be warranted. Under Section 2.75, the requirements of the Purchasing Ordinance may be suspended by motion carried by at least five (5) members of the City Council where strict compliance with the requirements of Article VII of Chapter 2 of the Redwood City Municipal Code (Purchasing Ordinance) would not serve the public interest, including instances where the only equipment suitable is of a unique nature and available from a single source only. (RCMC 2.76 "Grounds and Procedures for Suspension of Article Requirements.") As explained above, staff determined the NO- DES flushing truck is equipment of a unique nature and that NO-DES Inc. is the sole manufacturer to build the equipment. Staff therefore requests that City Council suspend the purchasing requirements per Redwood City Municipal Code Section 2.76 for purchases greater than $100,000 for the sole source purchase from NO-DES Inc. which holds exclusive rights for the manufacture and distribution of the NO-DES technology through a US patent.