TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: Approve the Termination of the Maintenance Agreement With ThyssenKrupp Elevator Corporation Effective on October 17, 2026.
Recommended Action
Approve the termination of the Maintenance Agreement with ThyssenKrupp Elevator Corporation effective on October 17, 2026.
Background Information
The City of North Port currently has a Maintenance Agreement with ThyssenKrupp Elevator Corporation (TK Elevator) which provides preventative maintenance, annual testing, parts and devices for elevators at various locations within City facilities. Over time, staff have observed ongoing performance issues, including:
Ø Delays in responding to service calls and urgent maintenance needs.
Ø Poor communication and lack of status updates on service requests.
Ø Incomplete repairs or repairs not completed with a reasonable timeframe.
Ø Inconsistent adherence to the preventative maintenance and testing schedule.
These deficiencies have negatively impacted the reliability of elevator operations at our facilities and pose both safety and operational concerns.
This Maintenance Agreement is effective for a five (5) year term beginning at the end of the New Installation Maintenance (NIM) warranty. It automatically renews for additional five-year terms unless either party provides written notice of intent to cancel at least 90 days before the end of the current term. The current Maintenance Agreement was last renewed on October 17, 2021, and is set to renew again on October 17, 2026.
Nonperformance is defined as TK Elevator’s inability to remedy any deficiencies within thirty (30) days after receiving written notification from the City of North Port. Notices shall be sent by certified mail with a return receipt requested.
The Maintenance Agreement does not impose any financial penalties for termination or non-renewal.
The following provides two options which are available for the City to terminate the Maintenance Agreement:
1. Prior to Renewal: The City may terminate the Maintenance Agreement before it automatically renews at the end of the five-year renewal period, which is October 17, 2026. The City must provide TK Elevator written notice of the City’s intent to cancel the automatic renewal at least 90 days before the end of the current renewal period.
2. Non-Performance: The City may terminate the Maintenance Agreement for non-performance if TK Elevator is unable to remedy a deficiency within 30-days of its receipt of the City’s written notice of the deficiency. Following its receipt of written notice, TK Elevator has 30 days to remedy the deficiency before the City can terminate the Maintenance Agreement.
Pursuant to the City Charter, only the City Commission has the authority to enter into Contracts on behalf of the City. There is no verbiage included in the Maintenance Agreement authorizing another party or person to act on the City’s behalf regarding termination of the Maintenance Agreement. Therefore, as the contracting party, only the City Commission has the authority to determine and provide direction related to termination of the Maintenance Agreement.
Due to persistent issues of maintenance, inadequate communication and failure to respond to work requests in a timely manager, staff recommends that the City Commission authorize the termination of the Maintenance Agreement with ThyssenKrupp Elevator Corporation, effective at the end of the current term on October 17, 2026.
The Interim City Attorney has provided guidance on this matter.
Strategic Plan
Infrastructure & Facilities Integrity
Financial Impact
Not applicable.
Procurement
Not applicable.
Attachments:
1. Agreement
2. Addendum A
3. Addendum B
Prepared by: Garrett Woods, Senior Business Manager
Department Director: Chuck Speake, Public Works Director