HomeMy WebLinkAboutPR 18536: PHASE III PERFORMANCE CONTRACTING AGMT. WITH SIEMENS INDUSTRY, INC. MEMORANDUM
CITY OF PORT ARTHUR
UTILITY OPERATIONS DEPARTMENT
TO: John A. Comeaux P.E., Interim City Manager
FROM: John A. Tomplait, Assistant Director of Utility Operations
DATE: September 5, 2014
RE: Proposed Resolution No. 18536
RECOMMENDATION
I recommend that the City Council approve Proposed Resolution No.18536 authorizing the
execution of a contract for a phase Ill water loss reduction, water meter improvements and a
City wide fixed based automatic meter infrastructure, with Siemens Industry, Inc., of
Houston, Texas, in the amount not to exceed $8,021,021.00.
BACKGROUND
This contract is to provide services for the following projects: 1) Reduction of water loss
through the identification and repair of hydrant leaks. 2) Large meter replacements, and 3)
Automatic metering system upgrades. Siemens has submitted a scope of work, payment
schedules, performance assurance, and a performance contracting agreement.
BUDGET/FISCAL EFFECT
This project will be funded from the Utility Operations budget savings.
SUMMARY
I recommend that the City Council approve Proposed Resolution No. 18536.
P. R. No. 18536
09/05/14 jt/vrt
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY MANAGER TO
EXECUTE THE CONTRACT FOR PHASE III OF A
PERFORMANCE CONTRACTING AGREEMENT BETWEEN THE
CITY OF PORT ARTHUR AND SIEMENS INDUSTRY, INC.,
BUILDING TECHNOLOGIES DIVISION, FOR THE
REPLACEMENT OF FIRE HYDRANTS, LARGE WATER METER
REPLACEMENTS, AND CITY-WIDE RETROFIT TO FIXED
BASED SYSTEM, AND AUTOMATIC METER READING SYSTEM
UPGRADE, IN AN AMOUNT NOT-TO-EXCEED $8,021,021.00
(FUNDING CONTINGENT UPON APPROVAL OF FINANCING).
WHEREAS, the Water Utilities Department has extensively reviewed measures to improve its
system infrastructure and operational efficiencies; and,
WHEREAS, pursuant to Resolution Number 12-147, the City Council authorized the original
Performance Contract Phase I for energy improvement and upgrades with Siemens; and,
WHEREAS, pursuant to Resolution Number 13-393, the City Council authorized a Performance
Contract Phase II for the Police Department's HVAC improvement and upgrades with Siemens; and,
WHEREAS, Siemens Industry, Inc., Building Technologies Division has presented a Phase III
proposal specifically addressing the City's water infrastructure
WHEREAS, this contract will provide services for the following projects: 1) reduction of water
loss through the identification and repair of hydrant leaks, 2) large meter replacements, and 3) automatic
metering system upgrades; and,
WHEREAS, Exhibit"A" includes a scope of work which indicates that 117 fire hydrants and
229 water meters that are three inches or larger will be replaced during this project; and,
WHEREAS,transmitters will be installed for the new large meters and retrofitted for 18,706
existing smaller meters, which will facilitate a city-wide fixed based automatic meter infrastructure as
specifically stated in Exhibit"A"; and,
P. R. No. 18536
09/05/14 jt/vrt
Page 2
WHEREAS, the payment schedules are attached as Exhibit "B" whereby the City will pay to
Siemens Industry, Inc., Building Technologies Division $8,021,021.00 (plus taxes, if applicable) in ten
monthly payments; and,
WHEREAS, Performance Assurances are also attached as Exhibit"C"; and,
WHEREAS, Siemens will complete the work no later than 360 calendar days from the day of
commencement; and,
WHEREAS, the proposed cost of said project is $8,021,021, which will be funded by the City
of Port Arthur by a Tax Exempt Term Lease agreement, which is authorized pursuant to Chapter 302 of
the Texas Local Government Code and will provide water and operational cost savings that can offset
the cost of the project.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PORT ARTHUR:
THAT the City Manager of the City of Port Arthur is hereby authorized and directed to execute,
on behalf of the City of Port Arthur, a contract between the City of Port Arthur and Siemens Industry,
Inc. Building Technologies Division for Phase III project in an amount not to exceed $8,021,021.00, in
substantially the same form as attached hereto as (Exhibit"D").
THAT said contract and financing is authorized pursuant to Chapter 302 of the Texas Local
Government Code, which sets forth the parameters for Energy Savings Performance contracts for local
governments.
THAT execution of this contract is contingent upon the final approval of financing.
THAT a copy of the caption of this resolution be spread upon the minutes of the City Council.
P. R. No. 18536
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READ, ADOPTED AND APPROVED THIS day of , 2014
at a Regular Meeting of the City Council of the City of Port Arthur, Texas, by the following vote:
AYES: Mayor
Councilmembers:
NOES:
Debris Prince
Mayor
ATTEST: APPROVED AS TO FORM:
Sherri Bellard Va ecia Tizeno
City Secretary City Attorney
APPROVED FOR ADMINISTRATION:
John A. Comeaux P.E. Shawna Tubbs, CPPB
Interim City Manager Purchasing Manager
John A. Tomplait
Assistant Director of Utility Operations
APPROVED AS TO AVAILABILITY OF
FUNDS:
POU-Olz _7142i
Deborah Echols
Director of Finance