Monday, September 14, 2015

Management Services and Siemens

Comment Up

The city administration continues to try and give our city away.  This time we are going to break even for 15 years on equipment that will be outdated in five and we will be paying the loan for 30 years. No one can explain the logic behind this "deal" that passed on a 4/1 vote. The only thing that one can conclude is "just another thing off the city manager's plate" at a tremendous expense.

It's unbelievable to me that in a city with 30% poverty, in a city with little money, this administration finds ways to spend small fortunes such as this recent $32.5 million deal with Siemens.  They spend like they have deep pockets. They tell us that the contract is $32.5  and includes--Siemens cost of the work for installation ($12M); Performance Assurance Services Program costs of $1.3M (paid to Siemens over 15 year term); third party maintenance agreements costs of $1.6M (paid to Tantalus and N. Harris over 15 year term); and, the remainder being interest payments on the Bank of America equipment lease loan to fund the direct purchase and installation costs.

To be more precise: The CITY’s installation project total is $22,964,693 of which $11,259,014 is Direct Purchase of Equipment from vendors and $11,705,679 (that's MILLIONS) is the Contract Sum due to SIEMENS for the Work.

Small fortunes on changing out light bulbs ($3 mil), small fortunes for erecting solar panels ($5.5 mil) on our landfill for 2% of power, and $13 mil for smart meters. We just changed out meters. Did we really need any of this or was it simply "I want it therefore it will be." Commissioner McVoy got taken in by renewal energy and the other three, who knows?  They must want to believe that spending these multi-millions is "moving the city forward" as Commissioner Amoroso likes to tell us.

The Siemens contact was approved by this commission on a 4/1 vote with Maier dissenting. Everyone knew it was going to get approved as Hector Samario was skirting around city hall for 14 months laying his seed and doing his audit. Now the City just approved another $300,000 for some company to oversee what Siemens and its subs do. I can't find where this ever went out on an RFP. Did it? No one can answer this question other than it didn't have to go out on an RFP. Where did this company come from--Siemens recommendation?

Last Tuesday the commission approved a draft work order and authorized the Mayor to approve the final Work Order with URS, a division of AECOM, acquired a little over one year ago, for Construction Management Services during the Siemens Energy Efficiency Project for a not-to exceed amount of $299,403.

BACKGROUND AND JUSTIFICATION:
The Siemens Energy Efficiency Program includes the procurement and construction of multiple Facility Improvement Measures (FIMs) over an 18 month schedule, with a total cost exceeding $22 million. This work order will provide the City with construction management services to oversee these projects and fulfill the City’s responsibilities during construction. URS has specialized experience with energy efficiency programs needed to oversee this project. The Work Order is approximately 1.4% of the projected Energy Services Agreement.

Someone(s) is making a heck of a lot of money off of Lake Worth.

12 comments:

Anonymous said...

Does anyone understand this deal? I'm not sure Ryan understands it either. When in doubt, vote no I always say. The commissioners never said why this was a good thing for our city.

Anonymous said...

What is going on in this city???

Lynn Anderson said...

I would like just one commissioner who voted for this to tell me why this is a good deal. Come on now, let's go...you voted for it so you must know the answers. Why is it a "win, win?"

Anonymous said...

If you and you're readers are incapable of understanding the deal why should anyone waste their time explaining it to you? Even if it was a perfect deal for the city you would try to find fault with it because the "best commission ever" or the "best city manager ever" didn't come up with the idea. They were too busy trying to fire PBSO and screwing up our beach park.

Lynn Anderson said...

Wow, great stuff, anonymous @2:15. So, tell me, explain the deal. You sure like to re-write history.

Anonymous said...

Good one Lynn! They can't explain it either. What is going on?

Anonymous said...

Good response Lynn and no doubt Mr. Know-it-all at 2:15 could not explain it at all. Those that could are no longer here because they did not support the whole package. The lighting makes sense and will be good for the city but the meters are nonsense after just installing new ones. But we as rate payers do not have a say and are represented by individuals who also do not know and utility management who also does not know. Prepare for increasing rates.

Anonymous said...

The citizens have NO representation. What happened to "if we don't get 63 million from you , our city will cease to exist! Remember all those deadly pot hole that Andy, Pam and Scott were screaming about? On to the next "screw the tax payers" scheme.

Anonymous said...

"If you and you're readers are incapable of understanding the deal why should anyone waste their time explaining it to you".

How about because we are the citizens that pay all the bills around here? How about because our elected officials are supposed to ANSWER,yes ANSWER to us?

Anonymous said...

It seems to me we really need to get busy finding replacements for the three up for reelection; and Bornstein is going to be a lead weight on our budget now for the next 5 years unless we can oust him for dereliction of fiduciary responsibility. I have not seen them turn down any deal that is hugely expensive for any reason. They represent 100% of the time big spending and big development. Even while they maintain that we are "hemorrhaging" money because we have not given away our beach property to developers, especially those with connections to commissioners.

Anonymous said...

Well Anonymous at 8:54 seems you are a reader as well of Lynn's blog so if you are so knowledgeable about all the utility business going on in the city why don't you enlighten us. For me I go and ask the leaders at the Electric Utility or at least I used to before the city hired people who do not know. The new lighting project will be good for the city once they get figured out what to do with the Deco lights. As far as the meters go 0 trust with that one. The Other blogger is clueless as well as you are so go over there and make your comments.

Anonymous said...

Anon at 2:15 It's YOUR ,not YOU'RE .Looks like somebody wasn't paying attention in eighth grade English ,,,,,