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Date: December 16, 2019 Item No.
TERMINATION OF THE CONTRACT WITH COOL AIR MECHANICAL, INC. FOR
MAINTENANCE OF HVAC SYSTEMS
Proposed Action
Staff recommends adoption of the following motion: Move to terminate the contract with Cool
Air Mechanical, Inc. for the maintenance of heating, ventilation, and air conditioning (HVAC)
systems at designated City facilities.
Overview
This contract encompassed the maintenance requirements for HVAC systems in the four fire
stations, the Police Department, the Heritage Center, the Arts Center, two of the liquor stores,
the Water Treatment Facility, the Central Maintenance Facility, and City Hall.
Maintenance activities include the seasonal startup of heating and cooling systems and detailed
checks of temperature controls, fans, heat exchangers, and filters. Tasks for 2019 were completed
in October. Shortly after fall startup for the heating systems, the company approached the City
requesting to the terminate the contract because they were unable to meet service requirements
at the prices quoted. The original term of the contract extended through December 31, 2020.
Funds remain budgeted throughout the 2020 fiscal year to provide preventive maintenance for
HVAC systems. Staff recommends approving the contract termination.
Primary Issues to Consider
• What is the effect of terminating this contract? No outward changes are expected. Facilities
staff will modify scheduled maintenance tasks and seek quotes for spring and fall startups to
fit within the budgeted funds.
Supporting Information
• A termination agreement is attached.
Financial Impact: $0 Budgeted: Source:
Related Documents (CIP, ERP, etc.):
Envision Lakeville Community Values: Good Value for Public Services
Report Completed by: Neil Normandin, Public Works and Facilities Coordinator
TERMINATION AGREEMENT
AGREEMENT made his 16th day of December 2019, by and between the CITY OF
LAKEVILLE, a Minnesota municipal corporation (“City”) and COOL AIR MECHANICAL,
INC., a Minnesota corporation (“Contractor”).
IN CONSIDERATION OF THEIR MUTUAL COVENANTS THE PARTIES AGREE
AS FOLLOWS:
1. TERMINATION OF CONTRACT. The parties entered into a Contract for
Services dated March 18, 2019 (“Contract”) for preventive maintenance and repairs of the
Heating, Ventilation and Air Conditioning systems in designated facilities. The Contract is
terminated effective the date of this Termination Agreement.
2. PAYMENT. Contractor agrees that it has been paid in full under the Contract
and releases the City from any claims and obligations arising out of the Contract.
CITY OF LAKEVILLE
BY: ___________________________________
Douglas P. Anderson, Mayor
AND __________________________________
Charlene Friedges, City Clerk
COOL AIR MECHANICAL, INC.
BY: ___________________________________
Its