Item 16/2026
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Samuel Kim
Dept:
City Manager Dept: Public Works
Date: 1/27/2026
Subject: Award a contract to Siemens Industries, Inc. for maintenance services of Seimens HVAC systems in City owned buildings. (Cost: $209,710)(Action Item)
OBJECTIVE
For City Council to award a contract to Siemens Industries, Inc. for servicing City-owned heating, ventilation and air conditioning (HVAC) systems.
BACKGROUND
The Public Works Department is responsible for the operation and maintenance of public facility systems. Currently, twenty-five (25) City-owned buildings use Siemens HVAC systems and controls. These systems consist of proprietary software, hardware and internet controls only serviced by Siemens Industries Inc., a sole source vendor.
DISCUSSION
Due to the proprietary nature of Siemens systems, it is necessary to call on Siemens factory- trained staff to provide preventative maintenance and software upgrades, as well as City Staff directed support and staff training. The required service agreement serves to protect the City’s investment, minimize energy use, as well as reducing operational costs and sy stem downtime. Moreover, the agreement gives the City priority service as well as a 30% discount on labor and a 60% discount on parts. Additionally, the agreement includes emergency, on- site services 24-hours a day . In accordance with Garden Grove Municipal Code sections
2.50.060(C) and (G), the Department has determined, in the City’s best interest, that Siemens as a sole -source vendor due to proprietary considerations, is the most suitable provider to service the existing equipment. City staff is recommending adopting the proposed Siemens service agreement. This is a three -year contract with an option to extend the agreement for an additional two years.
Item 16/2026
FINANCIAL IMPACT
The total cost of the three (3) year contract is $209,710 , with an option to extend for an additional two (2) years, bringing the potential five-year total to $370,270. The cost is included in the existing Building Maintenance Division’s adopted operating budget.
RECOMMENDATION
It is recommended that the City Council:
Approve the waiver of the bidding process due to the proprietary software, hardware, and internet controls that can only be serviced by Siemens Industries, Inc., in accordance with Municipal Code Section 2.50.060 (C), and in the best interest of the City per Section 2.50.060 (G);
Approve the agreement with Siemens Industries Inc., in the amount of $209,710 for the first three (3) years, with an option to extend for an additional two (2) years, at a cost of $160,560 , for a total five-year contractual cost of $370,270 for the maintenance of Siemens HVAC systems; and
Authorize the City Manager, or designee, to execute the agreement on behalf of the City and make minor modifications as necessary.
By: Phillip Carter, Facilities Manager
ATTACHMENT(S)
1. Contract