Otis Elevator’s $650 Fuel Surcharge on Hold at Montgomery County

Montgomery County Board Meeting | June 9, 2026

Article Summary: The Montgomery County Board was told June 9 that Otis Elevator billed the county $650 for a fuel and logistics surcharge, and that a contract review confirmed the company may impose one — but the Buildings & Grounds Committee will not recommend paying the bill until it gets more information.

Otis Surcharge Key Points:

• The bill totals $650 and is described on the invoice as a logistics and fuel impact fee.
• A contract review found Otis can implement a fuel and logistics surcharge under the contract the county signed.
• The committee will not recommend paying the bill until further information is acquired.
• Otis attributes the surcharge to sustained increases in fuel, logistics and other expenses tied to conflict in the Middle East.

MONTGOMERY COUNTY — The Montgomery County Board on Tuesday, June 9, 2026, heard that a $650 surcharge from Otis Elevator is on hold, even though the county’s own contract appears to permit it.

Buildings & Grounds Committee Chairman Mark Hughes told the board Otis Elevator billed the county for a fuel and logistics surcharge totaling $650. After reviewing the contract, Hughes said, Otis can implement a fuel and logistics surcharge according to the contract the county signed with the company.

Hughes said the committee will not recommend paying the bill until further information is acquired. No motion was made and no vote taken.

The invoice in the board packet is dated May 11, 2026, with a due date of June 10, and lists a single line item — “Logistics and fuel impact fee” — at $650, with no sales tax. It identifies the building address as the Montgomery County courthouse at 140 N. Main St. in Hillsboro.

A letter enclosed with the invoice from Joe Armas, senior vice president and general manager of Otis North America, tells customers that conflict in the Middle East has directly resulted in sustained increases in fuel, logistics and other expenses, and that to help offset a portion of those increases and support its service commitments, the company has implemented a fuel and logistics surcharge. The letter directs questions to the local Otis account manager.

A contract excerpt in the packet, with a section headed “Price Adjustment” highlighted, describes two triggers. The contract price is adjusted on the commencement date anniversary or as of the effective date of any labor rate increase, by the percentage increase in the straight time hourly labor cost under the International Union of Elevator Constructors. In addition, the excerpt states, Otis may adjust the contract price as a result of any substantial changes in service expenses, including but not limited to expenses in connection with fuel, waste disposal, environmental requirements, cost of materials, changes to government regulations or other administrative costs.

The same document shows the contract renews automatically for successive three-year terms unless terminated by either party with written notice at least 90 days, but no more than 120 days, before the end of the then-current term.

The minutes do not record what additional information the committee is seeking, or when it expects to return to the item.