Resolution No. 5828
1 RESOLUTION NO. 5828
2 A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF VERNON APPROVING AND AUTHORIZING
3 THE EXECUTION OF A LEASE AND SERVICE ORDER
AGREEMENTS BY AND BETWEEN THE CITY OF
4 VERNON AND CALIFORNIA PURIFICATION AND
RECYCLING, INC. PROVIDING FOR THE LEASE
5 AND MAINTENANCE OF ONE REVERSE OSMOSIS
SYSTEM AND A DEIONI ZER UNIT FOR THE
6 OPERATION OF THE TURBINE GENERATORS
7 WHEREAS, the City of Vernon entered into a Lease with
8 California Purification and Recycling, Inc. to provide and
9 maintain one Reverse Osmosis System and a Deionizer unit to
10 purify water for the operation of the Turbine Generators which
11 expired on or about September 1, 1990; and
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WHEREAS, the City of Vernon desires to enter into a
13 Lease with California Purification and Recycling, Inc. for an
14 additional three (3) year period in accordance with the
15 recommendation of Kenneth J. DeDario, the Director of Light and
16 Power.
17 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
18 THE CITY OF VERNON AS FOLLOWS:
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SECTION 1:
The City Council of the City of Vernon
20 hereby finds and determines that the recitals contained
21 hereinabove are true and correct.
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SECTION 2:
The City Council of the City of Vernon
23 hereby approves the Lease and Service Order Agreements, a copy
24 of which has been presented to the City Council concurrently
25 with this resolution and the City Council hereby orders said
26 Lease and Agreements to be received and filed by the City Clerk.
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SECTION 3:
The City Council of the City of Vernon
28 hereby authorizes the Mayor and the City Clerk to execute said
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Lease and Agreements for, and on behalf of, the City of Vernon.
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certify to the passage of this resolution and thereupon and
SECTION 4: The City Clerk of the City of Vernon shall
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thereafter the same shall be in full force and effect.
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ATTEST:
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BRUCE V.
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APPROVED AND ADOPTED this 4th day of september, 1990.
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.- LEONI S C. MAIQ3URG, M yor
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MALKENHORST, City Clerk
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1 STATE OF CALIFORNIA )
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2 COUNTY OF LOS ANGELES )
3 I, BRUCE V. MALKENHORST, City Clerk of the City of
4 Vernon, do hereby certify that the foregoing Resolution, being
5 Resolution No. 5828, was duly adopted by the city Council of the
6 Ci ty of Vernon at a regular meeting of the city Council duly
7 held on Tuesday, September 4. 1990. and thereafter duly signed
8 by the Mayor of the City of Vernon.
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11 BRUCE V. MALKENHORST, City Clerk
12 (SEAL)
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CALIFORNIA PURIFICATION AND RECYCLING, INC.
7777 INDUSTRY AVENUE
PICO RIVERA, CALIFORNIA 90660
(213) 948-2188
LEASE
CALIFORNIA PURIFICATION AND RECYCLING, INC. (C.P.R.), hereinafter called
"Lessor," and City of Vernon whose address is 4305 Santa Fe Avenue. Vernon.
CA 90058 (Project site 2715 East 50th st. Vernon) hereinafter called
"Lessee," in consideration of the promises made herein and intending to be
legally bound, agree as follows:
Property and Terms
1. Lessor hereby leases to lessee
in accordance with C.P.R. offering of
to city of Vernon
September 1
(3 ) years.
one (1) R.O./D.I. system all
June 22. , 1987
This Lease shall become effective
, 1990, and shall continue for a full term of three
Rentals
2. Lessor shall maintain said System on Lessee's premises at the
address set forth above. Lessee shall pay a monthly rental for the use of
said System at the rate set forth in paragraph 12, hereof. The rent due and
payable ten (10) days following delivery of each monthly invoice and
continuing for the term of this Lease and any renewal thereof. The first
rental payment shall include .the rental charge for the first month and a
prepayment of an amount equal to the rental charges for the last 0
month of this Lease, as a security deposit, by Lessee for the performance of
the covenants, conditions, and agreements of this Lease, and also for any
damage which Lessor may sustain by reason of an act of Lessee. Such deposit
may be applied by and at the option of Lessor to the payment or performance
of any obligation of Lessee hereunder, and such application shall not
constitute a waiver of payment of such obligation except at the option of
Lessor, and shall not excuse the performance at the time and in the manner
prescribed herein of any obligation of Lessee or prevent default thereof, and
any such deposit not so applied will be returned to Lessee after termination
of the Lease.
Use of System
3. The system covered hereby may be used by Lessee only at the PROJECT
SITE above and shall not be removed therefrom or sublet, or otherwise
disposed of, nor this Lease assigned without the previous written consent of
Lessor.
ownership
4. It is expressly understood that this is an agreement of lease only,
and that Lessee acquires no right, title, or interest in or to the System
described herein, other than the right to the possession and use of the same
in accordance with the terms of this Lease. Any identification labels
attached to lease property shall not be removed.
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Cost of Use
5. Lessee shall bear the entire cost of using the leased System during
the term of this agreement, except as provided hereunder.
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Guaranteed Maintenance Service
6. During the term of this agreement, Lessor will render guaranteed
maintenance service during ordinary business hours, at the Lessee's above-
listed address, consisting of the replacement, without any charge, of all
worn parts with new parts unless made necessary by fire, flood, accident,
carelessness, or abuse; and regular oiling, greasing, adjusting. Also no
additional charge will be made for extra service calls required between
regular inspections, except when made necessary by fire, flood, accident,
carelessness, or abuse.
Water Quality and Maintenance Warranty
7. C.P.R. agrees to the following conditions as regards to operation
and maintenance of the Reverse Osmosis Pure water system:
a) The system will be serviced on a weeklY basis
by a trained technician. A status report will be supplied to the Lessee
after each service.
b) An operating log will be maintained at the system site for review
by the Lessee.
c) C.P.R. will operate the system at a quality level that will exceed
the Lessee requirement for which the complete system was designed. Quality
levels of the system product water will be determined by tests that determine
"percentrejection" and total dissolved mineral content of the product water.
Water quality will be maintained at a level of 90% or better rejection level
at all times.
d) Design parameters for product flow (gallons per minute) will be
maintained at all times during the term of the contract.
e) C.P.R. agrees to provide emergency service on a seven day, twenty-
four hour basis upon four hour notification of the Lessee.
f) In the event of system failure or any downtime for system
maintenance or repair, C.P.R. agrees to provide an alternate system of
adequate size and capacity to the Lessee at no extra charge, including but
not limited to the supply of purified water by truck.
Taxes
8. Lessor hereby shall pay any personal property taxes levied against
the leased system covered hereby. Any other taxes levied or based on this
agreement or the use of the system covered hereby, except taxes based on
Lessor's net income, shall be paid by Lessee.
Warranty and Breakdown
9. It is understood that Lessee has certain guarantees or warranties
regarding the leased system as to material, workmanship, or the capacity of
the system. Lessor shall not be responsible for any loss of time or any
other loss resulting from any system breakdown or other failures. Lessor
will replace any defective parts within a reasonable time of being notified.
It is also understood that there shall be no abatement of rental during any
period of breakdown or nonuse of the leased system.
Accidents and<'Insurance
10. Lessee shall insure all of the personal property involved in this
Lease or any amendments thereto against any loss or damage by fire or other
hazard or perils, ordinarily included under the standard extended coverage
endorsement. Lessee also agrees to insure said property against loss by
theft or any other hazard which is not covered by said standard coverage.
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If the property involved herein is damaged or destroyed by means
which are not covered by said insurance, then Lessee shall pay the cost of
repairs to restore the same. If the damage is beyond repair, then Lessee
shall pay Lessor the reasonable market value of the property before such
damage or destruction and said sum shall become immediately due and payable
to Lessor.
Termination
11. This Lease may be terminated by Lessor prior to the expiration date
set forth in paragraph 1. hereof on ten (10) days written notice delivered
or mailed to Lessee at its address as set forth above, in the event that
lessee (I) fails to pay rental charges within the time specified herein; or
(II) makes any breach or default under this agreement; or (III) become
bankrupt, insolvent, or makes assignments for benefit of creditors; or (IV)
discontinues operation, abandons, or permits the system to be subjected to
unreasonable hazards or risks. Such termination of the Lease by Lessor or
taking or recovery of the leased System shall not deprive Lessor of any of
its rights, remedies, or actions against Lessee for rents or damages or
affect Lessee's obligation to make payments provided hereunder. On
termination of this Lease for whatever reason, Lessee agrees that Lessor may
immediately take possession of the System covered hereby and remove the same
from Lessee's premises without the necessity of resorting to any legal
process.
Rate Schedule
12. The following rate schedule applies to this agreement:
Lessee agrees to pay Lessor
of Product for the first 174,000
per month and 0.11 cents per
gallons. The minimum rental shall be
o cents per gallon
gallons of Product
gallon above 174,000
$2,000.00 per month
General
13. (a) This agreement contains the full and entire agreement between
the parties hereto, and no oral or written understanding with any
representative of Lessor is of any force or effect whatsoever.
(b) This agreement is binding on and shall inure to the benefit
of the heirs, executors, administrators, successors, or assigns, of the
respective parties thereto.
(0) This agreement shall not be amended or altered in any manner
unless such amendment Or alternation is in writing.
EXECUTED ON
October 2,
19~ at Vernon, California
"LESSOR"
::~IFORN;reCA10N ~:l;ING'
INC.
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"LESSEE"
CITY OF VERNON
APPROVE.D AS TO FORti
BY~~~O~
DAVID B. }3lr\l:..ARJ...EY
CI'i'Y ATTOFm5Y
By: e~~'
/' LEON'), C. MALBURG. lJl!'~d~.? ~7
ATTEST: ,/h--- ;/;/:Z lA i'~--
Bruce V. Malkenhorst, City Clerk