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.
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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.
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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