HomeMy WebLinkAboutPR 20005: CANCELLING THE CONTRACT WITH EP HVAC City of
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www.PortArthurTx.gov
INTEROFFICE MEMORANDUM
Date: November 22, 2017
To: The Honorable Mayor and City Council
Through: Dr. Jimmie Johnson, Acting City Manager
From: Armando Gutierrez, Jr., P.E., Director of Public Works
RE: P.R. 20005 —Cancelling the Contract with EP HVAC
Introduction:
Acceptance of cancelation of the contract between the City of Port Arthur and EP HVAC of
Beaumont, Texas for the Air Conditioning and Heating Maintenance and Repair Contract.
Background:
On January 17, 2017, City Council approved Resolution No. 17-006 entering into a contract
with EP HVAC of Beaumont, Texas to perform maintenance services on five (5) ton units
and greater for City facilities. EP HVAC informed the City via letterhead declaring
"insolvency", stating the company can no longer perform maintenance services as per
agreement. The Engineering Department will solicit for bids upon acceptance of contract
cancellation by city council.
Budget Impact:
N/A
Recommendation:
It is recommended that the City Council approve P. R. No. 20005 authorizing the City Acting
City Manager to cancel the HVAC contract with EP HVAC of Beaumont, Texas for the Air
Conditioning and Heating Maintenance and Repair contract.
"Remember,we are here to serve the Citizens of Port Arthur"
P.O.Box 1089 X Port Arthur,Texas 77641-1089 X 409.983.8101 X FAX 409.982.6743
P.R. No. 20005
11/15/17 rtb
RESOLUTION NO.
A RESOLUTION TERMINATING THE CONTRACT WITH EP HVAC OF
BEAUMONT, TEXAS FOR AIR CONDITIONING AND HEATING
MAINTENANCE AND REPAIR CONTRACT FOR THE CITY OF PORT
ARTHUR BUILDINGS.
WHEREAS, per Resolution 17-006, the City Council awarded a contract to EP
HVAC with the option of renewal for two (2) additional one (1) year terms for an HVAC
Repair Contractor to perform maintenance on five (5) ton units and greater for the
various City Buildings on January 17, 2017 ; and,
WHEREAS, the City received a letter from EP HVAC dated October 23, 2017
and has declared insolvency (see attached Exhibit "A") and are providing notice that it
is unable to continue the HVAC maintenance services per agreement; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT
ARTHUR:
THAT, the facts and opinions in the preamble are true and correct; and,
THAT, the City Council of the City of Port Arthur hereby terminates the contract
with EP HVAC of Beaumont and authorizes the Purchasing Department to solicit bids for
HVAC maintenance services; and,
THAT, a copy of the caption of this Resolution be spread upon the Minutes of
the City Council.
READ, ADOPTED AND APPROVED this the day of , A.D. 2017
at a meeting of the City of Port Arthur, Texas by the following vote:
P.R. 20005
Page 2
Ayes: Mayor:
Councilmembers:
Noes:
Mayor
Derrick Freeman
Attest:
City Secretary
Sherri Bellard
APP9.OVED A'. TO FORM: APPROVED FOR ADMINISTRATION:
ILA
Valecia Tizm IF Dr. Jimmie Johnson
City Attorney Acting City Manager
APPROVED:
Armando Gutierrez, Jr., P.E.
Directore_606,k.
of//Public Works
/ u`.4JJf 4 ict,
Clifton Williams, CPPB
Purchasing Manager
EXHIBIT A
0 ®EP H VAC �nc.
2100 Wellspring Beaumont,Texas 77705 409.722.8670 Main 409.722.8893 Fax www.ephvac.us
Halifax,Canada - Montreal,Canada - Rotterdam,Netherlands - Beaumont,Texas
City of Port Arthur,TX 23 October 2017
Attention: Mr.Clifton Williams,Acting Purchasing Manager
444 4th Street
P.O. Box 1089
Port Arthur,Texas
77641
Subject: Air Conditioning and Heating Maintenance and Repair
Dear Mr.Williams,
I am writing to personally inform you that EP HVAC US Inc.,while struggling financially for months, has
sadly become insolvent. In fairness to our staff,who depend on the business and its ability to meet
payroll,we had to release our hourly workers this past Friday. Over the past year our efforts to
restructure the business and its financing have not worked as we'd hoped.We are contacting the Texas
Workforce Commission today to advise them of our changed standing.
As we informed our employees,the business condition is not a reflection of their hard work and
dedication.They have worked diligently to service the City of Port Arthur's facilities,and we've been
fortunate to have them as part of our team.
Our Beaumont Office Manager, Ms.Trish Carcara,will remain to assist with the orderly exit of the
business in the coming weeks as we satisfy our financial obligations with suppliers.The business has been
viable since we opened in 2009, but as with many firms over the past years,economic conditions have
taken a toll.
Thank you for your understanding in this matter, I can be reached directly at (902)405-4120 for any
further information you may need.
Sincerely,
/ f/(-- .
W. Kevin Downs, P.Eng.
President,
EP HVAC US Inc.
1 Designed to Work in the World's Toughest Environments,Yours.