| | | | | | | | Agenda Item - 2.b.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
| To: | Scott C. Stiles
| From: | William E. Murray
| | Dept.: | City Manager
| Dept.: | Public Works
| | Subject: | Approval of an agreement with Siemens Industries, Inc., to provide service to the Heating, Ventilation and Air Conditioning (HVAC) systems. (Cost: $168,870) (Action Item) | Date: | |
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| | | | | | | | OBJECTIVE
Secure City Council approval to contract with Siemens Industries, Inc. for service of City owned heating, ventilation and air conditioning (HVAC) systems.
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| | | | | | | | BACKGROUND
The Public Works Department is responsible for the operation and maintenance of City HVAC systems. Recently, the City made a significant investment upgrading existing HVAC systems to Siemens integrated control solutions. Currently, most City buildings use Siemens HVAC systems (see list in Appendix A). These systems consist of proprietary software, hardware and internet controls only serviced by Siemens Industries Inc. Siemens is the sole source vendor.
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| | | | | | | | DISCUSSION
Due to the proprietary nature of Siemens systems it is necessary to call on Siemens factory trained staff to provide preventative maintenance, software upgrades as well as City staff directed support and training. The required service agreement serves to protect the City’s initial investment, minimize energy use, operational costs and system downtime. Moreover, the agreement provides priority service as well as a 30% discount on labor and a 60% discount on parts. The agreement includes emergency on-site services 24 hours a day. To protect the City’s investment and optimize performance and productivity, City staff recommends adopting the proposed Siemen service agreement. This is a three-year contract with an option to extend the agreement for an additional two years. |
| | | | | | | | FINANCIAL IMPACT
The financial impact of the three-year contract is $168,870 with the option to extend the agreement for an additional two years for a potential total impact of $290,060 over five (5) years. Funds for the HVAC contract services are available in the existing Building Maintenance operating budget. |
| | | | | | | | RECOMMENDATION
It is recommended that City Council:
- Approve the attached agreement with Siemens Industries Inc., in the amount of $168,870 for three (3) years, with an option to extend for an additional two (2) years, at a cost of $121,190, for a total $290,060 over five (5) years for the maintenance of Siemens HVAC systems; and
- Authorize the City Manager to execute the agreement on behalf of the City and make minor modifications as necessary.
By: Phillip Carter, Facilities Manager
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