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06.G. Resolution authorizing the Sole Source purchase of an Electrode with Tube Assembly from De Nora Water Tech, LLC for the City of Yakima Water Treatment Plant disinfection system 1 ,--44L.4--) iil rr 11 i \���iO enc u nrry 1 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 6.G. For Meeting of:August 17, 2021 ITEM TITLE: Resolution authorizing the Sole Source purchase of an Electrode with Tube Assembly from De Nora Water Tech, LLC for the City of Yakima Water Treatment Plant disinfection system SUBMITTED BY: Scott Schafer, Director of Public Works David Brown,Assistant Director of Public Works, 509-575-6204 SUMMARY EXPLANATION: The City of Yakima (City)Water Treatment Plant uses an onsite sodium hypochlorite generator to produce chlorine for drinking water disinfection as required by state and federal regulations for water quality. The generator utilizes an electrode assembly cell and electricity to produce sodium hypochlorite from a brine solution. This electrode assembly is encased in an acrylic casing. The acrylic casing developed cracks and has been recently replaced. Cost of the electrode with tube assembly and the recently purchased acrylic casing is over the $50,000 threshold which requires Council approval. The electrode with tube assembly is reaching the end of its useful life. It is therefore prudent to replace that assembly before it fails. As described in the attached Sole Source Justification form, De Nora Water Tech LLC is the sole manufacture of the assembly for the Clortec generator used by the City. The City followed the requirements of RCW 39.04.280, City Charter and Municipal Code for sole source purchases over$50,000, as De Nora, the manufacturer, sells directly there are no other vendors. The sole source purchase, including a 2-year warranty, of just the electrode with tube assembly is in an amount not to exceed $42,225 (see attached Sole Source Justification and Quote). The electrode assemble with tube assembly purchase is funded through Water Capital Fund 477. As was the previous purchase of the acrylic casing. ITEM BUDGETED: Yes STRATEGIC PRIORITY: Public Safety APPROVED FOR SUBMITTAL BY THE CITY MANAGER RECOMMENDATION: Adopt Resolution 2 ATTACHMENTS: Description Upload Date Type ❑ Resolution 7/22/2021 Resolution D Sole Source 7/27/2021 Backup Material d Quote 7/14/2021 Backup Material 3 RESOLUTION NO. R-2021- A RESOLUTION authorizing the sole source purchase of a CT600 Drinking/NSF,W Electrode with Tube Assemblyfrom De Nora Water Tech, LLC Inc. for the City of Yakima Water Treatment Plant disinfection system. WHEREAS, Article VI, section 6 of the City of Yakima Charter and the Yakima Municipal Code Chapter 1.80 generally requires that purchases over $50,000 be done by competitive bidding, subject to certain exceptions; and WHEREAS, the law recognized a "sole source" exception from these competitive bid requirements when, due to unique specifications and requirements, it would be futile to utilize competitive bidding; and WHEREAS, the City of Yakima owns and operates a Clortec sodium hypochlorite generation system for disinfection of the drinking water and the need a replacement of the electrode with tube assembly; and WHEREAS, as this assembly is offered from the manufacture only; there are no vendors to contact to see if they could provide the unique electrode with tube assembly; and WHEREAS, pursuant to RCW 39.04.280 (1)(a), any requirement for competitive bidding for the acquisition of the above-described assembly is hereby waived by adoption of this Resolution, due to the fact that: although there are other manufactures of sodium hypochlorite generation systems in the market, it would require we replace the complete generation system to use other electrode assemblies, and WHEREAS, De Nora Water Tech, LLC has agreed to provide the assembly with a 2- year total warranty for$42,225 as included in the attached quotation; and WHEREAS, the City Council finds that it is in the best interests of the City to approve the purchase of the electrode with tube assembly described above, and that such approval will enable the City to continue to meet disinfection requirements for drinking water; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: Section 1. The City Council finds and determines that the purchase of an electrode with tube assembly is clearly and legitimately limited to a sole source of supply, justifying the waiver of competitive bidding in this acquisition, which bidding requirements are hereby waived. Section 2, The purchase an electrode assembly, as described above, for an amount not to exceed of$42,225 is approved. Section 3. The City Manager, or his designee, is hereby authorized to accomplish the purchase of such assembly, and to execute any and all documentation to accomplish such purchase. 4 ADOPTED BY THE CITY COUNCIL this 17'h day of August, 2021. ATTEST: Patricia Byers, Mayor Sonya Claar Tee, City Clerk 5 i /-, � Cit of Yakima: s,iiir ....,, . )) t, v..- *., 0, r SOLE/SINGLE SOURCE 't . . -. JUSTIFICATION ,,.. .. .........s.- _. z ,.. - Revised October 2020 Your Name Jeff Bond fy Your Department/Division Water/Irrigation-PublicWorks Your Phone 509-575-6177 Requisition Number 45519 I i Requested Vendor DeNora Water Tech(#13821) Cost Estimate(Including TAX) $42,224,65 i Vendor`s Address DE NORA WATER TECH LLG ._.__ Vendor e-mail .._ w.. _-_..� City, State&Zip p 1 1 1 fl inril mtrini Arm tlatiarri &Website Herbert,Barbce@denora,com I L'endor Contact Name Herb Barbee .___...,..�_. _ Vendor Phone 1-2$1-274-�8464 1 1. ARE FEDERAL FUNDS BEING USED? OYES @NO If Federal Funds are bing used,a Cost Price Analysis,prior to requesting Sole Source MUST also be attached. (See City Purchasing Manual for form). 2. What are you purchasing? Describe product,service or system. Attach all information(Quotes,etc.). This is the Electrode assembly for the the chlorine generator at the drinking water treatment plant. We produce our own chlorine for disinfection of the City of Yakima drinking water.This equipment is a vital part of our day to day operation. ***Below are eligible reasons for sole source. Check all boxes below that apply to your sole source situation and attach any useful documents to justify the sole source. List who you contacted,what they said and how you verified their accuracy. Rc Compatibility/Standardization to existing City standard or to existing equipment, inventory, systems,data,programs or service. Describe. List efforts to find other sources (attach documentation,e.g. Internet Screenshots,etc.). IN Patented Product. Attach documentation to confirm propriety(patent letter, etc.)and describe why the patented features are critical to your operation. j Only Authorized Service Provider, Repair and/or Warranty Services.Attach proof in writing from the MANUFACTURER(not the vendor)confirming there is only one dealer authorized to sell/service in our area. ri Unique design: Requires unique features that are essential,aesthetic requirements, or not possible to match to existing design or equipment. Document the unique specifications that are needed which drove the research in finding a product that fits the specific needs of your department. Explain why these features are critical to your operation. This Clortec chlorine generator is soley manufactured by De Nora Water Technologies and they are our main distributor for all Clortec parts and equipment. De Nora letter of sole source is attached. Is written certification attached? ril S r N0 Version 1 Ur2U2U 6 o Special Market conditions: Can be used to purchase items at auction (RCW 39 30,045)or other items that are offered at a very favorable price and will be sold before and entity will have a chance to complete the bidding process(e.g. a flood is coming and you must obtain sandbags immediately),or only one supplier can meet required delivery date(describe why the delivery date Is critical and list efforts to find other suppliers to meet the delivery date). D Other Please Describe 3. Is this product/service available only through one vendor? YES r NO If yes,attach documentation that supports the screening process you performed to confirm (e.g.Internet Screenshots,etc.) Yes,we have been working directly with De Nora for several years in all purchases large and small associated with the Clortec unit. 4. Is this a onetime purchase? C YES ( NO If NO,explain. We have used De Nora for purchasing small and large items for several years for the chlorine generator.we will no doubt need to purchase parts and equipment in the future. 5. Why is this a sole source vendor? (tell the story). De Nora is the only Clortec manufacturer and we don't need to use a distributor to purchase parts and equipment for our chlorine generation needs. 6. What efforts were made to assure the City is receiving the lowest or best price possible? Describe and attach a document showing due diligence. This item is a standardized item and any purchase would have to go through De Nora at the manufacturers pricing. STATEMENT OF NEED/CONFLICT OF INTEREST My division's recommendation for sole source is based upon an objective review of the good/service being required and appears to be in the best interest of the City I know of no conflict of interest on my part or personal involvement in any way with this request. No gratuities,favor,or compromising action have taken place. Neither has my personal familiarity with particular brands,types of equipment, materials or firms been a deciding influence on my request to sole source this purchase when there are other known suppliers to exist. Or Signature of Requester Date 7 3 Signature of Division Manager Date Z22:31 Signature of Department Head Date Signature of approval by Purchasing Manager Lo _ Date ___Vc2:77/a4 dr Approval by Executive Date Please complete entire form and forward to Purchasing. Verstor,10/2020 Page 2 of 2 7 QUOTATION NUMBER DATE Page 1 of 3 20022669 07/13/2021 CUSTOMER REFERENCE CURRENCY USD SHIPPING METHOD END OF VALIDITY COURIER 09/13/2021 PAYMENT TERMS PACKAGING Net 30 days Included SHIPPING POINT ADDRESS INCOTERMS DE NORA WATER TECH LLC. 1110 Industrial Boulevard FOB-Free on board Sugar Land,TX 77478 USA DE NORA CONTACT SOLD TO PARTY 30002347 Herbert Barbee ph: +12812748464 CITY OF YAKIMA mail: Herbert.Barbee@denora.com ATTN: ACCOUNTS PAYABLE SHIP TO PARTY 30002347 129 N. 2ND STREET YAKIMA, WA 98901 USA ITEM/CODE/DESCRIPTION U.M QTY PRICE CURRENCY AMOUNT 10 47000333 PC 1 57,023.51 USD 57,023.51 CELL,ASSEMBLY, CT600, DRINKING/NSF Legacy Part Number:CT6-0600E-1 20 47000335 PC 1 53,306.98 USD 53,306.98 CELL ASSEMBLY, CT600,SCH40 PVC, FRP Legacy Part Number: CT6-0600E-1-PF-NVP 30 47000334 PC 1 38,784.85 USD 38,784.85 ELECTRODE ASSEMBLY, CT600,DRINKING/NSF,W Legacy Part Number:CT6-0600E-1-EL 40 40000524 PC 1 203.75 USD 203.75 Crate, CT600, Tube Assembly Legacy Part Number:5607-146 CUSTOMER'S ACCEPTANCE OF THIS QUOTATION IS EVIDENCED BY THE SIGNATURE APPLIED HERETO AND CONSTITUTES A CONTRACT TO PURCHASE SUBJECT ONLY TO THE TERMS AND CONDITIONS PROVIDED HEREWITH. ANY CONFLICTING TERMS AND CONDITIONS PROVIDED BY BUYER ARE EXPRESSLY DISCLAIMED. SIGNATURE: DATE: TAX BASE SALES TAX AMOUNT TOTAL PRODUCT TOTAL SALES TAX TOTAL 149,319.09 USD 12,393.48 USD 149,319.09 USD 12,393.48 USD 161,712.57 USD De Nora Water Technologies LLC., 1110 Industrial Boulevard, Sugar Land, TX 77478 USA TIN: 23-2259749, Tel: 1-281-240-6770 Fax: 1-281-274-8492 Web: www.denora.com 8 QUOTATION NUMBER DATE Page 2 of 3 20022669 07/13/2021 CUSTOMER REFERENCE CURRENCY USD *Country of Origin: USA *Sch B: 8421.99.0040 *ECCN: NLR-EAR99 **Freight Not Included in Quote* * Estimated Lead Time: 10- 12 Weeks ARO * EXWORKS, our crating company, Houston, TX If you wish to order the part, please sign the attached quote and provide your PO number and Bill and ship to address to avoid approval delays. **Availability is subject to prior sale** Minimum order of$50.00 required Standard documentation and packaging are provided. We cannot pack to military specifications nor do we offer bar-coding services. $50.00 charge per Certificate of Conformance. If the request is received After the order is shipped the charge — Will increase to$100.00. Seller may freely assign any order issued by Buyer to any of Seller's affiliates, and shall notify the Buyer of same, at its option. Seller reserves the right to manufacture, or to have manufactured at an affiliated facility worldwide, any of the Products, in whole or in part, associated with an order issued hereunder. In the event that the performance of a contractual obligation hereunder by either party hereto is prevented, restricted, hindered, delayed or interfered with directly or indirectly in connection with the COVID-19("Coronavirus")pandemic or similar pandemic or epidemy and/or any measures introduced by any government authority to address such pandemics/epidemies, the party so affected shall be excused from such performance to the extent and for the duration of such prevention, restriction, hindrance, delay or interference, and shall not be liable for any costs or damages. Each party shall exercise reasonable efforts to resolve any impediment, however, neither Party shall be obligated to incur additional costs of more than 5%of the order value. The party affected should give notice to the other party as soon as practicable of the prevention, restriction, hindrance, delay or interference with its performance. Per attached De Nora Water Technologies Texas LLC Terms and Conditions EXW(Ex-Works): Sugar Land, Texas 77478 U.S.A. Regards, Herbert R Barbee Inside Sales Representative De Nora Water Technologies Texas LLC Direct: +1 (281)274-8464 Fax: +1 (281)240-6762 Toll free Product/Tech Support T: 1.800-646-9426, option 2 Tech Support Email: Herbert.Barbee@denora.com Website: http://www.denora.com De Nora and Customer agree that the General Terms and Conditions of Sale set forth at http://www.denora.com/products.html(the"Terms")shall exclusively govern the transactions described or contemplated in this Purchase Order or Proposal,as applicable,and any other sales or related transaction between the parties herein,and such Terms are expressly incorporated by reference herein and to any related agreements between the parties. Any additional or different TAX BASE SALES TAX AMOUNT TOTAL PRODUCT TOTAL SALES TAX TOTAL 149,319.09 USD 12,393.48 USD 149,319.09 USD 12,393.48 USD 161,712.57 USD De Nora Water Technologies LLC., 1110 Industrial Boulevard, Sugar Land, TX 77478 USA TIN: 23-2259749, Tel: 1-281-240-6770 Fax: 1-281-274-8492 Web: www.denora.com 9 QUOTATION NUMBER DATE Page 3 of 3 20022669 07/13/2021 CUSTOMER REFERENCE CURRENCY USD terms or conditions which may appear in any communication from Customer,including,without limitation,in any printed form provided,are hereby expressly objected to and rejected in full and shall not be effective or binding in any capacity unless expressly accepted in an authorized writing by De Nora,regardless of, and fully notwithstanding, De Nora's supply of any goods and services or the execution of any document or acceptance by any person other than an officer or authorized agent of De Nora. TAX BASE SALES TAX AMOUNT TOTAL PRODUCT TOTAL SALES TAX TOTAL 149,319.09 USD 12,393.48 USD 149,319.09 USD 12,393.48 USD 161,712.57 USD De Nora Water Technologies LLC., 1110 Industrial Boulevard, Sugar Land, TX 77478 USA TIN: 23-2259749, Tel: 1-281-240-6770 Fax: 1-281-274-8492 Web: www.denora.com