Siemens $12.6 million ‘No-Bid’ Contract – Paid from 2016 Bond Issue

All meters in the City, a total of 7,684 meters, are included in the contract at a cost of $4.6 million.  Meter replacement began in mid-summer of 2017.  Most meters have been installed.

By comparison, West University Place approved the installation of 6244 radio-controlled meters in 2013 at a cost of just under $2 million. Their project was not financed over 20 years, it was paid for in cash from funds held in reserve.

Yes – Bellaire paid Siemens over $4.6 million dollars for 7686 water meters, with borrowed money on a no-bid basis. West University had 6,244 water meters replaced for less than $2 million.  Cash, from their Capital Reserve fund.

Siemens 8-2-16 Performance Contracting Workshop Presentation

Savings are estimated to begin in 2026.  See the cash flow projection below.  To date the City of Bellaire has not released a report regarding the savings promised by this Contract.  This entire operation was confined to dealings with Siemens, from the first inspection our systems.  Numerous water leaks from meter installations have been reported, most repaired by City of Bellaire crews.  A more in-depth article will be posted soon.

Siemens Cashflow Projection

 

Questions presented by Council Member David Montague.

Siemens Q & A Regarding No-Bid Contract