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HomeMy WebLinkAbout08 - CC-7 - Amendment No.1 to the Maintenance Agreem - 3/2/20211 CITY COUNCIL AGENDA REPORT MEETING DATE: MARCH 2, 2021 ITEM NUMBER: CC-7 SUBJECT: AMENDMENT NO. 1 TO THE MAINTENANCE SERVICES AGREEMENT WITH SIEMENS INDUSTRY, INC. DATE: FEBRUARY 9, 2021 FROM: PUBLIC SERVICES DEPARTMENT / ENGINEERING DIVISION PRESENTATION BY: RAJA SETHURAMAN, PUBLIC SERVICES DIRECTOR FOR FURTHER INFORMATION CONTACT: SEUNG YANG, P.E., CITY ENGINEER (714) 754-5633 RECOMMENDATION: Staff recommends that the City Council: 1. Approve proposed Amendment No. 1 (Attachment 1) to the Maintenance Services Agreement with Siemens Industry, Inc., 6141 Katella Avenue, Cypress, CA, 90630, increasing the annual amount by $60,000 for Years 1 and 2 of the agreement. 2. Authorize the City Manager and the City Clerk to execute the amendment and future authorized amendments to the agreement. BACKGROUND: On July 21, 2020, the City Council awarded a Maintenance Services Agreement (MSA) to Siemens Industry Inc. for HVAC maintenance and repair services for City Hall and the Police Department facility in the amount of $90,648 in the first year (Year 1) and $83,419 in the second year (Year 2) of the contract. The MSA includes preventative maintenance, inspection, and repairs for the City’s HVAC units, including but not limited to, periodic inspections, regular maintenance, servicing repairs, parts replacement, periodic meetings, and project management. ANALYSIS: While the MSA provides funding for preventive maintenance and inspections, it does not include funding for any needed essential repairs to the City’s HVAC units. Therefore, additional funds are necessary to cover repair costs that fall outside the current Siemens MSA. The proposed scope of work under Amendment No. 1 provides for servicing repairs, both parts and labor, to the City’s HVAC equipment system. 2 A summary of the costs including the proposed Amendment No. 1 is as follows: Year 1: Original Contract Amount (MSA): $ 90,648 Amendment No. 1: $ 60,000 Total Contract Amount: $150,648 Year 2: Original Contract Amount (MSA): $ 83,419 Amendment No. 1: $ 60,000 Total Contract Amount: $143,419 ALTERNATIVES CONSIDERED: One alternative would be to evaluate the cost effectiveness of managing this work with in- house staff. However, this is not recommended as the nature of the work is beyond staff capabilities. FISCAL REVIEW: The amendment will be absorbed from within the Public Services General Fund operating budget. LEGAL REVIEW: The City Attorney’s Office has reviewed and approved this report as to form and prepared the proposed amendment. CITY COUNCIL GOALS & PRIORITIES: This item supports City Council Goal 3: Keep the City fiscally sustainable. To address our long-term obligations as well as immediate needs we will: Take measures to reduce expenditures by including but not limited to: Implementing energy efficiencies and sustainability practices at City Hall, in public buildings, parks and public spaces. CONCLUSION: Staff recommends that the City Council approve the proposed amendment No.1 to the MSA with Siemens Industry, Inc., increasing the annual amount by $60,000 for Years 1 and 2, and authorize the City Manager and the City Clerk to execute the proposed amendment and future authorized amendments to the agreement. 3 SEUNG YANG, P.E. RAJA SETHURAMAN City Engineer Public Services Director CAROL MOLINA KIMBERLY HALL BARLOW Finance Director City Attorney ATTACHMENTS: 1 – 2 – Amendment No. 1 Maintenance Services Agreement 1 Siemens Industry, Inc. Amendment One Rev. 05-20 AMENDMENT NUMBER ONE TO MAINTENANCE SERVICES AGREEMENT WITH SIEMENS INDUSTRY, INC. This Amendment Number One (“Amendment”) is made and entered into this 2nd day of March, 2021 (“Effective Date”), by and between the CITY OF COSTA MESA, a municipal corporation (“City”), and SIEMENS INDUSTRY, INC., a Delaware corporation (“Contractor”). WHEREAS, City and Contractor entered into an agreement on August 1, 2020 for Contractor to provide heating, ventilation and air conditioning (“HVAC”) maintenance and repair services at City Hall and the Police Department (the “Agreement”); and WHEREAS, City desires to increase Contractor’s maximum annual compensation during each year of the Agreement to provide funding for essential repairs to the City’s HVAC units. NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. Section 2.1 of the Agreement shall be amended to reflect that Contractor’s compensation for the first year of the Agreement shall not exceed One Hundred Fifty Thousand Six Hundred Forty-Eight Dollars ($150,648.00), and Contractor’s compensation for the second year of the Agreement shall not exceed One Hundred Forty-Three Thousand Four Hundred Nineteen Dollars ($143,419.00). Contractor shall be paid according to the fee schedule set forth in the Agreement. 2. All terms not defined herein shall have the same meaning and use as set forth in the Agreement. 3. All other terms, conditions, and provisions of the Agreement not in conflict with this Amendment shall remain in full force and effect. 4. This Amendment may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one agreement. Counterpart written signatures may be transmitted by facsimile, email or other electronic means and have the same legal effect as if they were original signatures. [Signature page follows.] Attachment 1 2 Siemens Industry, Inc. Amendment One Rev. 05-20 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by and through their respective authorized officers, as of the date first written above. CITY OF COSTA MESA ________________________________ Date: __________________________ City Manager CONTRACTOR ________________________________ Date: __________________________ Signature ________________________________ Name and Title ATTEST: ________________________________ City Clerk APPROVED AS TO FORM: ________________________________ Date: __________________________ City Attorney APPROVED AS TO INSURANCE: ________________________________ Date: __________________________ Risk Management APPROVED AS TO CONTENT: ________________________________ Date: __________________________ Project Manager 3 Siemens Industry, Inc. Amendment One Rev. 05-20 DEPARTMENTAL APPROVAL: ________________________________ Date: __________________________ Public Services Director APPROVED AS TO PURCHASING: ________________________________ Date: __________________________ Finance Director Attachment 2