HomeMy WebLinkAboutPR 20598: CANCELLATION OF SIEMENS PERFORMANCE CONTRACT „ \\\„,,„,,,,
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INTEROFFICE MEMORANDUM
Date: February 19. 2019
To: The Honorable Mayor and City Council
Through: Harvey Robinson, Interim City Manager
From: Donnie Stanton—Assistant Director of Utilities
RE: PR 20598—Cancellation of Siemens Performance Contract
Introduction:
Resolution 14-406 established a performance contracts between the City of Port Arthur and
Siemens Industry, Inc. to guarantee certain performance measures of devices and equipment
installed. Upon investigation, Staff has determined that the contract is too costly for the
insignificant benefit offered by Siemens. Staff recommends cancellation of the annual
performance contract for Phase III of the improvements made by the Siemens Industry, Inc.
The total estimated budgetary impact for this cancellation is an estimated $131,608 over the
next 10 years.
Budget Impact:
The total estimated budgetary impact for this cancellation is an estimated $131,608 over the
next 10 years.
Recommendation:
It is recommended that City Council approve PR 20598, authorizing the City Manager to
execute amendment No. 1 to the Performance Contracting Agreements for Phase III, which
terminates the performance assurance services program between the City of Port Arthur and
Siemens Industry, Inc., Building Technologies Division.
"Remember,we are here to serve the Citizens of Port Arthur”
P. R. No. 20598
2/20/19 ds
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE
AMENDMENT NO. 1 TO THE PERFORMANCE CONTRACTING
AGREEMENT FOR PHASE III, WHICH TERMINATES THE
PERFORMANCE ASSURANCE SERVICES PROGRAM BETWEEN THE
CITY OF PORT ARTHUR AND SIEMENS INDUSTRY, INC.,
BUILDING TECHNOLOGIES DIVISION
WHEREAS, per Resolution No. 14-406, the City entered into a contract for
Phase III of a Performance Contract with Siemens Industry, Inc., Building Technologies
Division, for the replacement of fire hydrants, large water meter replacements, and city-
wide retrofit to fixed base system and automatic meter reading system upgrade; and,
WHEREAS, the Director of Public Services for the City has determined that the
Performance Assurance Services Program for Phase III is not cost effective and it is
recommended that the City amend the Performance Contracting Agreement terminating
the Performance Assurance Services Program retroactive to September 30, 2018
(Amendment are attached hereto as Exhibit "A").
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF PORT ARTHUR:
THAT, the City Council hereby authorizes the City Manager to execute
Amendment No. 1 to the Performance Contracting Agreement for Phase III,
which terminates the Performance Assurance Services Program retroactive to
September 30, 2018, in substantially the same form as attached hereto as Exhibit "A".
THAT, a copy of the caption of this resolution be spread upon the minutes of the
City Council.
P. R. No. 20598
2/20/19 ds
READ, ADOPTED AND APPROVED THIS day of ,
2019 at a Regular Meeting of the City Council of the City of Port Arthur, Texas, by the
following vote: AYES:
Mayor: ,
Councilmembers: ,
NOES: •
Derrick Freeman, Mayor
ATTEST: APPROVED AS TO FORM:
Sherri Bellard Val Tizeno
City Secretary City Attorney
APPROVED FOR ADMINISTRATION:
Harvey Robinson Dr. Hani Tohme, P.E.
Interim City Manager Director of Public Services
P. R. No. 20598
2/20/19 gt
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Andrew asquez, A Clifton Williams, CPPB
Director of Finance Purchasing Manager
Exhibit "A"
(Amendment No. 1 to performance contracting agreement — Phase III)
Amendment No. 1 to Performance Contracting Agreement - Phase 3
THIS AMENDMENT No. 1 ("Amendment") is made this 1 rst day of October, 2018, by and between Siemens
Industry, Inc., through its Building Technologies Division (f/k/a Siemens Building Technologies,
Inc.)("SIEMENS"), and the party identified below as CLIENT, and effective upon execution, amends and
modifies the Performance Contracting Agreement - Phase 3 dated September 9, 2014 between SIEMENS
and CLIENT,and all prior amendments thereto, if any(collectively the"Agreement").
PROJECT:
This Amendment No. 1 shall operate to terminate the PASP and,by so doing, SIEMENS'Performance
Guarantee obligations are fully satisfied resulting in termination of the Agreement. SIEMENS PASP contract
#2600088931 and CLIENT's PR#14-406.
CLIENT: City ofhPort Arthur SIEMENS: Siemens Industry, Inc.
444 4 Street 1000 Deerfield Parkway
Port Arthur,Texas 77641 Buffalo Grove IL 60089
Local office at:
DESIGNATED REPRESENTATIVE: Siemens Industry, Inc.
8850 Fallbrook Rd
Phone: ,Fax: Houston,Texas 77064
DESIGNATED REPRESENTATIVE:
Robert McMillin, PhD, SW Zone BPS General
Manager
Phone:281-949-3022,Fax:NA
1. The Agreement and any amendments thereto are incorporated by reference herein and made a part hereof.
2, The Parties agree to modify the Agreement as follows:
a. Termination of Performance Assurance Services Program.
i. The PASP is hereby terminated.The Parties hereby agree that the effective date of termination is
retroactive to September 30,2018;
ii. As a result of the termination of the PASP,the savings shall no longer be measured and verified.Therefore,the
remaining savings to be realized through the otherwise remaining term of the Performance Guarantee are
hereby be deemed realized;
iii. Other than obligations that survive termination of the Agreement,if any,SIEMENS shall have no further
obligations to the CLIENT under the Agreement;
iv. Other than obligations that survive termination of the Agreement,the CLIENT shall have no further obligations to
the SIEMENS under the Agreement;and,
v. The Agreement,therefore,is hereby terminated.
WHEREFORE, this Amendment amends and modifies the Agreement. The Parties have caused this Amendment to
be signed by their duly authorized representatives on the date first above written, and this Amendment may be
executed in counterparts, each of which shall be deemed an original and together shall constitute one and the same
instrument.
CLIENT: City of Port Arthur SIEMENS: Siemens Industry, Inc.
Signature: Signature:
Printed Printed
Name: Name:
Title: Title:
SII-BTO-EES
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