City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: SEPTEMBER 16, 2025 FROM: GENERAL SERVICES DEPARTMENT WARDS: ALL
SUBJECT: SERVICES AGREEMENT FOR BUILDING AUTOMATION SERVICES FOR HEATING, VENTILATION, AND AIR CONDITIONING AT VARIOUS CITY FACILITIES WITH SIEMENS INDUSTRY, INC., OF CYPRESS, CALIFORNIA, FOR A FIVE-YEAR TERM FROM JULY 1, 2025 TO JUNE 30, 2030, IN THE AMOUNT OF $307,935 ISSUE:
Approve a Services Agreement for building automation services for heating, ventilation and air conditioning at various City facilities with Siemens Industry, Inc., of Cypress, California, for a five-year term from July 1, 2025 to June 30, 2030, in the amount of $307,935.
RECOMMENDATIONS:
That the City Council:
Approve a Services Agreement for building automation services for heating, ventilation and air conditioning at various City facilities with Siemens Industry, Inc., of Cypress, California, for a five-year term from July 1, 2025 to June 30, 2030, in the amount of $307,935; and Authorize the City Manager, or designee, to execute all necessary documents including making minor and non-substantive changes.
DISCUSSION:
The City of Riverside has contracted with Siemens Industry, Inc. for more than 25 years for heating, ventilation and air conditioning (HVAC) building automation technical support services and equipment. During that time, Siemens performed various retrofit projects at City locations as part of a Citywide Multi-Phase Energy Retrofit Program resulting in an overall reduction in energy usage and increased energy bill savings. The Siemens Apogee Building Automation System is currently the City’s standard Energy Management System (EMS), also known as a building automation system.
The primary function of an EMS is to control, monitor and troubleshoot the HVAC systems throughout the facilities, which is its primary use for the City. The Siemens EMS system could be used to implement energy management strategies and provide control and monitoring of other building systems through integration at an additional cost (such as fire, lighting, security, etc.).
The Siemens system is installed at the following City facilities:
Main Library
City Corporation Yard
City Hall and City Council Chambers
Lincoln Street Police Station
Orange Street Police Station
Utilities Orange Square
La Sierra Library
Emergency Operations Center
Orange Terrace Library
Casa Blanca Library
Siemens automation systems are proprietary and the sole provider of the Siemens Apogee Building Automation System, which requires proprietary software upgrades that cannot be linked or provided by any other vendor’s automated HVAC controls.
Purchasing Resolution 24101, Section 602, Exceptions, states that Competitive Procurement through the Informal Procurement and Formal Procurement process shall not be required… (c) “When the Procurement can only be obtained from a sole source and the Manager is satisfied that the best price, terms and conditions for the Procurement thereof have been negotiated.” The Purchasing Manager concurs that the recommended actions are in accordance with Purchasing Resolution No. 24101, Section 602 (c).
FISCAL IMPACT:
The total fiscal impact of this action is $307,935 over the five-year term of the agreement. Sufficient funds for FY 2025/26 are available in the General Fund, General Services Professional Services Account No. 2210000-421000 for FY 2025/26. Additional funds will be budgeted in future budget cycles.
Year
Period
Annual Cost
1 Jul 01, 2025 to Jun 30, 2026
$55,175
2 Jul 01, 2026 to Jun 30, 2027
$58,209
3 Jul 01, 2027 to Jun 30, 2028
$61,411
4 Jul 01, 2028 to Jun 30, 2029
$64,788
5 Jul 01, 2029 to Jun 30, 2030
$68,352
Total
$307,935
Prepared by: Fred Tobar, Administrative Analyst
Approved by: Lee Withers, General Services Director Certified as to
availability of funds: Kristie Thomas, Finance Director/Assistant Chief Financial Officer Approved by: Edward Enriquez, Assistant City Manager/Chief Financial Officer/City Treasurer Approved as to form: Rebecca McKee-Reimbold, Interim City Attorney Attachment: Agreement
Services Agreement for HVAC Building Automation Control Services Page 1