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6.1.J. - Page 2 <br /> ANALYSIS <br /> The proposed contract involves upgrading our existing FlexNet system. There have <br /> been several enhancements to the RNI and MDM software applications that improve <br /> performance and reliability and provide additional tools to enhance operations. <br /> Upgrading the AMI software will help staff achieve the most accurate and efficient billing <br /> for Redwood City's water utility customers. <br /> The Sensus FlexNet AMI system uses an FCC licensed radio frequency which is only <br /> available to the FlexNet system. This licensed frequency makes the FlexNet system <br /> more reliable and less prone to interference from other radio equipment, and also is not <br /> interoperable with other AMI systems. <br /> Pursuant to Section 2.76 of the Redwood City Code, the City Council may suspend the <br /> requirements of the City's Purchasing Ordinance where the only material, equipment or <br /> supplies that are suitable are of a unique nature and available from a single source only. <br /> Such a motion must receive the affirmative vote of at least five members of the Council. <br /> Here, choosing another vendor for these services would require replacement of all <br /> TGBs and meter endpoints representing an investment of approximately $2,400,000. <br /> For these reasons, awarding a sole-source contract to Sensus USA Inc. for the hosted <br /> software services of a new RNI and MDM application is in the best interest of the City. <br /> ALTERNATIVES <br /> 1. The Council may elect to approve the agreement for a term less than five years, <br /> however, staff believes a five-year term is in the best interest of the City and will <br /> provide continued access to the water meter reading collection system and timely <br /> billing and water revenue collection. <br /> 2. The Council may elect to approve only the first term of the contract and ask staff <br /> to return to the Council for approval of any subsequent terms. <br /> FISCAL IMPACT <br /> Funds for the first year of this contract are available in the Water Enterprise Fund <br /> accounts 686-74294-95 and 687-65142-50. The annual cost of the contract and term <br /> one total is shown in Table 1 below. <br /> Table 1 <br /> Year 1 Year 2 Year 3 Year 4 Year 5 Term 1 Total <br /> $46,500.00 $28,325.00 $29,174.75 $30,049.99 $30,951.49 $165,001.23 <br /> Should the contract be renewed for a second term the fiscal impact to the Water <br /> Enterprise Fund for a five-year term would be $169,255.45. The annual cost for a <br /> second term is shown in Table 2 below. <br /> Table 2 <br /> Year 1 Year 2 Year 3 Year 4 Year 5 Term 2 Total <br />