HomeMy WebLinkAbout- - Siemens Agreement Extension - 11/1/2011CITY COUNCIL AGENDA REPORT
MEETING DATE: NOVEMBER 1, 2011 ITEM NUMBER:
SUBJECT: 90 -DAY CONTRACT EXTENSION FOR SIEMENS BUILDING TECHNOLOGIES, INC.
DATE: OCTOBER 20, 2011
FROM: PUBLIC SERVICES DEPARTMENT - MAINTENANCE SERVICES DIVISION
PRESENTATION BY: ERNESTO MUNOZ, INTERIM DIRECTOR, PUBLIC SERVICES
DEPARTMENT
FOR FURTHER INFORMATION CONTACT: BRUCE HARTLEY, MAINTENANCE SERVICES
MANAGER 714-754-5123
RECOMMENDATION:
1. Approve an amendment to the existing contract with Siemens Building Technologies,
Inc. (Siemens) extending the term for a period not to exceed ninety (90) days.
2. Authorize Chief Executive Officer and City Clerk to execute the Agreement.
BACKGROUND:
The City of Costa Mesa entered into a ten-year agreement with Siemens on August 14,
2001 for energy saving Heating Ventilation and Air Conditioning (HVAC) improvements
and a maintenance program for several City facilities. The initial contract expired August
31, 2011, at which time the Chief Executive Officer approved a 90 -day contract extension
to allow staff time to advertise a Request for Proposal (RFP) to competitively seek the most
qualified and cost effective service provider possible. The term of that extension expires
October 31, 2011.
ANALYSIS:
Siemens has provided HVAC management and energy efficiency services to the City for
over 15 years. The quality of the technical and mechanical support has been excellent,
with customer service always being their top priority. Any complaints over the years
have been remedied expeditiously and to the City's complete satisfaction. There are
currently no issues with their performance.
However, with a contract that has been with one company for so long, it is prudent to
seek competitive proposals to insure the City is receiving the best service and support
for the price. With the initial contract extension expiring and the current RFP process
not yet completed, a second contract extension is requested to insure continuity of
services and that all the HVAC systems remain operational. The RFP has been
advertised, with the review of proposals and a recommendation to the City Council for
award anticipated in January 2012. Siemens has confirmed their commitment to the City
by agreeing to the extension and will provide continuous service throughout this process.
1
This contracted service is included in the scope of work for upcoming RFP for Facility
Maintenance Services, which may be approved by Council for advertising as part of the
November 1, 2011 City Council meeting agenda.
ALTERNATIVES CONSIDERED:
The Council could extend the existing contract with Siemens for a shorter or longer term or
could direct staff to negotiate a time and material price agreement for interim services, but
due to the potential for costly repairs should there be a mechanical failure, this second
alternative is not recommended.
FISCAL REVIEW:
Funding for HVAC services is included in the FY 2011-12 Public Services Department
budget.
LEGAL REVIEW:
The City Attorney's office reviewed the request and prepared the attached Agreement.
CONCLUSION:
The award of the proposed ninety -day contract extension will ensure that the City's HVAC
systems continue to be properly maintained, repaired and programmed until the Request
for Proposal process is be completed. The evaluation process will be completed and a
recommendation for award will be brought back to the City Council in January 2012 for
your consideration.
ERNESTO MUNOZ
Interim Director of Public Services
BRUCE HARTLEY
Maintenance Services Manager
BOBBY YOUNG
Finance Director
Attachments: Amendment to Performance Services Agreement
Distribution: Chief Executive Officer
Interim Chief Executive Officer
Interim Director, Public Services
City Clerk
oil