Management Services and Siemens

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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  This time we are going to break even for 15 years on equipment that will be outdated in five and we will be paying the loan for 30 years.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.