Agenda 10/09/2018 Item #16C 310/09/2018
EXECUTIVE SUMMARY
Recommendation to terminate the Siemen’s Guaranteed Energy, Water, and Wastewater
Performance Savings Contract assigned to the Collier County Water-Sewer District (CCWSD) by
Florida Governmental Utility Authority (FGUA) for non-appropriation.
OBJECTIVE: To obtain the Board of County Commissioner’s (Board’s) approval to terminate one of
the contracts assigned by FGUA at the time of the CCWSD transition of that utility.
CONSIDERATION: On November 14, 2017 under Agenda Item 9B, the Board approved the Transition
Agreement between FGUA and the CCWSD. In accordance with Section 3.02 (A)6 of the Transition
Agreement that certain Guaranteed Energy Water and Wastewater Performance Savings Contract, dated
July 25, 2016, by and between FGUA and Siemens Industry, Inc. (“Siemen’s Contract”) was assigned to
the CCWSD. The installation of equipment set forth in the Siemen’s Contract was already in process at
the time of transition and installation of the last component was completed in August 2018. Funds were
identified from the transition for completion of the final work but Siemens has not yet submitted a final
invoice.
Beginning fiscal year 2019, and for the next fifteen (15) years, the Siemen’s Contract provided for annual
reporting, and a Measurement & Verification Plan to confirm energy savings. The County Divisions that
staff the facilities within Golden Gate City have their own staff and systems available to track the
installed equipment that is currently being utilized and did not budget for this recurring annual cost.
Siemen’s Contract provides at Section 7.1, as follows:
Section 7.1 Termination for Non-Appropriation. In the event a Non-Appropriation has
occurred in a given Fiscal year, this Contract shall immediately terminate. The
termination shall be effective as of the last day of the period for which funds were
budgeted for the applicable fiscal year of the termination and Siemens shall be paid for
all work completed through the date of termination. (emphasis added)
The CCWSD has prepared the attached termination notice letter to notify Siemen’s Industry, Inc. of this
immediate termination, subject to the Board’s direction approving the termination of the agreement.
FISCAL IMPACT: There is no fiscal impact from this action as we will terminate before any amounts
are due.
LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires majority vote
for Board approval. -SRT
GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this
item.
RECOMMENDATION: That the Board approves the termination for non-appropriation of the
Siemen’s Contract and authorizes and directs the County Manager and/or his designee to sign and direct
the termination letter to the vendor.
Prepared By: Sue Jim Zimmerman, Contract Administration Specialist, Public Utilities Department
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10/09/2018
ATTACHMENT(S)
1. 1435456 Siemens Notice Letter (PDF)
16.C.3
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10/09/2018
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.C.3
Doc ID: 6809
Item Summary: Recommendation to terminate the Siemen’s Guaranteed Energy, Water, and
Wastewater Performance Savings Contract assigned to the Collier County Water-Sewer District
(CCWSD) by Florida Governmental Utility Authority (FGUA) for non-appropriation.
Meeting Date: 10/09/2018
Prepared by:
Title: Planner – Public Utilities Operations Support
Name: Sue Zimmerman
09/21/2018 2:07 PM
Submitted by:
Title: Division Director - Operations Support – Public Utilities Operations Support
Name: Joseph Bellone
09/21/2018 2:07 PM
Approved By:
Review:
Wastewater Beth Johnssen Additional Reviewer Completed 09/21/2018 3:07 PM
Public Utilities Operations Support Joseph Bellone Additional Reviewer Completed 09/21/2018 4:02 PM
Water Steve Messner Additional Reviewer Completed 09/24/2018 3:09 PM
Public Utilities Department Sarah Hamilton Level 1 Division Reviewer Completed 09/25/2018 8:57 AM
Public Utilities Department George Yilmaz Level 2 Division Administrator Review Completed 10/01/2018 9:53 AM
County Attorney's Office Scott Teach Level 2 Attorney Review Completed 10/01/2018 10:37 AM
County Attorney's Office Debbie Allen CAO Preview Skipped 09/27/2018 11:51 AM
Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 10/01/2018 10:45 AM
Budget and Management Office Ed Finn Additional Reviewer Completed 10/01/2018 11:19 AM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 10/01/2018 12:23 PM
County Manager's Office Heather Yilmaz Level 4 County Manager Review Completed 10/01/2018 12:32 PM
Board of County Commissioners MaryJo Brock Meeting Pending 10/09/2018 9:00 AM
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September 13, 2018
Siemens Company Industry, Inc.
Attn.: Gregg Eaton
8010 Woodland Center Blvd.
Tampa, FL 33614
Siemens Corporation
Attn.: Marc E. Bouchard
1000 Deerfield Parkway
Buffalo Grove, IL 60089
Re: Guaranteed Energy, Water, and Wastewater Performance Savings
Contract by and between Siemens Industry, Inc. (Siemens) and Florida
Governmental Utility Authority (FGUA) dated July 25, 2016 (Agreement)
Messers. Eaton and Bouchard:
As your records should reflect, FGUA transferred its interests in the Golden Gate City
Utilities to the Collier County Water-Sewer District (CCWSD) as of March 1, 2018. Included
in that transaction, the above-referenced Agreement was assigned by FGUA to the
CCWSD. This letter will serve as the CCWSD’s notice of Non-Appropriation to trigger the
immediate Termination for Non-Appropriation provision in Section 7.1 of the Agreement.
Section 7.1 of the Agreement provides:
Section 7.1 Termination for Non-Appropriation. In the event a Non-
Appropriation has occurred in a given Fiscal year, this Contract shall
immediately terminate. The termination shall be effective as of the last day
of the period for which funds were budgeted for the applicable fiscal year
of the termination and Siemens shall be paid for all work completed
through the date of termination.
Effective October 1, 2018 (the CCWSD’s new fiscal year 2019) the CCWSD did not
budget or appropriate for its Water and Wastewater Divisions to utilize Siemens annual
services, including but not limited to the Measurement & Verification (M&V) Services.
Accordingly, please submit an invoice for all unpaid work completed through September
30, 2018. The Agreement shall be deemed terminated as of September 30, 2018.
16.C.3.a
Packet Pg. 683 Attachment: 1435456 Siemens Notice Letter (6809 : Terminate the Siemen’s Guaranteed Energy, Water, and Wastewater Performance Savings
[18-WST-00091/1435456/1]
Should you have any questions, please do not hesitate to contact the undersigned.
Thank you.
Respectfully,
Sue Zimmerman, CPM
Contract Administration Specialist - PUD
Cc: Joe Bellone, Division Director
16.C.3.a
Packet Pg. 684 Attachment: 1435456 Siemens Notice Letter (6809 : Terminate the Siemen’s Guaranteed Energy, Water, and Wastewater Performance Savings