ITEM TITLE:
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Consider withholding payment of disputed invoices from Johnson Controls, Inc.
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INITIATOR: John Ratliff, City Attorney
STAFF INFORMATION SOURCE: John Ratliff, City Attorney
BACKGROUND: On June 17, 2021, based on the recommendation of several members of City Administration, the City Attorney notified Johnson Controls, Inc., the City’s HVAC systems provider, that Johnson Controls was in breach of their contractual obligations to provide service and maintenance for the City of Lawton’s HVAC systems.
On June 25, 2021, members of City Staff met with Johnson controls to discuss the problems that led to the City’s notice of breach, and to try to find some interim solutions and prioritize necessary HVAC work for the City. Since that meeting the conditions that led to the notice of breach have not been adequately addressed by Johnson Controls, and they are now demanding payment of more than $75,115.00, including a “final demand” for $24,371.67, all of which City Administration disputes.
EXHIBIT: Johnson Controls Notice of Final Demand
KEY ISSUES: n/a
FUNDING SOURCE: n/a
STAFF RECOMMENDED COUNCIL ACTION: Approve non-payment of Johnson Controls invoices and direct the City Attorney to engage in negotiations with Johnson Controls concerning the disputed invoices.