200 S. Anaheim Blvd.
Suite #620
Anaheim, CA 92805
Tel: (714) 765-5110
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www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
FINANCE DEPARTMENT
DATE: MAY 7, 2024
FROM: FINANCE DEPARTMENT
SUBJECT: SERVICE AGREEMENT WITH SIEMENS FOR THE ANAHEIM
CONVENTION CENTER HVAC CONTROL SYSTEM
ATTACHMENT (Y/N): NO ITEM # 06
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion:
1) Waive the bidding and publication requirements of Council Policy 4.0 and award a one-year agreement to Siemens Industry, Inc. (Siemens), in an amount not to exceed $77,699.91plus a 20% contingency, for services related to the Siemens automated HVAC control system at the Anaheim Convention Center (ACC); 2) Authorize the Purchasing Agent, or their designee, to exercise agreement renewals for up to two additional one-year periods, subject to available budget appropriations; and
3) Authorize the Purchasing Agent, or their designee, to execute documents, as necessary, related to the agreement.
DISCUSSION:
The ACC relies on complex technical systems that require maintenance, software updates and upgrades from Siemens. The proposed annual service agreement aims to safeguard these systems and maintain a comfortable environment for the employees and guests by providing preventative maintenance of all Siemens systems. The Energy Management System (EMS) primarily controls, monitors, and troubleshoots heating, ventilation, and air conditioning (HVAC) throughout the facility. Additionally, the system is currently utilized for energy management strategies and performance monitoring through cRSP, Simen’s exclusive Remote Services Platform.
Siemens is the only provider of the Apogee Insight Energy Management System. They are the sole manufacturer, distributor, and only certified factory trained service provider able to furnish critical software upgrades and programming necessary for system maintenance. The proprietary nature of the existing Apogee Insight System means that only Siemens factory technicians can handle detailed program adjustments, modifications, and support.
Service Agreement for the Siemens for the Anaheim Convention Center HVAC Control System May 7, 2024
Due to the critical and proprietary nature of these Siemens systems, staff requests authority to renew this agreement for up to two additional years upon request by the ACC. Annual renewal pricing is based on the initial year’s rate plus a 5.5% escalator each subsequent year. The base agreement may only be adjusted to account for the addition or deletion of various Siemens components. Staff has the option to pay monthly or annually in advance. After careful review, staff opted for annual in advance payment terms, resulting in cost savings of $3,108 for the base year or a total of $9,846 over the agreement’s lifetime, if renewals occur.
Benefits of this annual service agreement include up to 20% discounts for additional material and on-site labor; operator coaching; customer-directed support and 24/7 emergency response support.
IMPACT ON BUDGET:
Sufficient funds are available in the ACC’s Fiscal Year 2023/24 Budget. Funding for subsequent renewals of the service agreement will be subject to Council’s approval of budget appropriations.
Respectfully submitted, Concurred by,
Jered Rakosky Thomas Morton
Purchasing Agent Executive Director
Convention, Sports and Entertainment