Resolution No. 6775
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RESOLUTION NO. 6775
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF VERNON APPROVING AND AUTHORIZING THE
EXECUTION OF A SETTLEMENT AGREEMENT BY AND
BETWEEN THE CITY OF VERNON AND CHEM-TECH
SYSTEMS, INC.
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WHEREAS, CHEM-TECH SYSTEMS, INC. ("CHEM-TECH") operates
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a hazardous waste treatment facility at 3650 East 25th Street in
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the City of Vernon ("CITY"), but uses an address with a Los
Angeles zip code; and
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WHEREAS, in 1995 CHEM-TECH filed a petition for
bankruptcy, Case No. LA95 18924 SB, in the U. S. Bankruptcy Court,
Central District of California; and
WHEREAS, CITY filed a proof of claim in said action on
May 4, 1995 for the balance due for providing light and water
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service in the amount of Seven Thousand Four Hundred Forty Dollars
and Thirty-four Cents ($7,440.34), which amount is still pending
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settlement; and
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WHEREAS, CITY continued to provide light and water
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service to CHEM-TECH after May 4, 1995; and
WHEREAS, since that date CHEM-TECH has incurred an
unpaid debt to the CITY for said light and water service in the
amount of Twenty-five Thousand Two Hundred Thirty-four Dollars and
Seventy-seven Cents ($25,234.77) as of March 1, 1996, which debt
is not subject to the bankruptcy proceedings; and
WHEREAS, CITY has indicated that it will discontinue
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such electric and water service to CHEM-TECH unless that amount in
paid; and
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1 WHEREAS, CHEM-TECH has offered to enter into a
2 Settlement Agreement with CITY to repay said debt over a six-month
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4 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
5 THE CITY OF VERNON AS FOLLOWS:
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SECTION 1: The City Council of the City of Vernon
7 hereby finds and determines that the recitals contained
8 hereinabove are true and correct.
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SECTION 2: The City Council of the City of Vernon
10 hereby approves the Settlement Agreement, a copy of which has been
II presented to the City council concurrently herewith, and the City
l2 Council hereby orders said Agreement to be received and filed by
13 the City Clerk.
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SECTION 3: The City Council of the City of Vernon
15 hereby authorizes the Mayor and the City Clerk to execute said
l6 Agreement for, and on behalf of, the City of Vernon.
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SECTION 4: The City Clerk of the City of Vernon shall
18 certify to the passage of this resolution, and thereupon and
19 thereafter the same shall be in full force and effect.
20 APPROVED AND ADOPTED this 16th day of April, 1996.
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STATE OF CALIFORNIA )
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COUNTY OF LOS ANGELES )
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I, BRUCE V. MALKENHORST, City Clerk of the City of
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Vernon, do hereby certify that the foregoing Resolution, being
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Resolution No. 6775, was duly adopted by the City Council of the
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City of Vernon at a regular meeting of the City Council duly held
on Tuesday, April 16, 1996, and thereafter was duly signed by the
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Mayor of the City of Vernon.
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(SEAL)
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04/16/96
Post-if" Fax Note
17:10
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818 330 5818
5818 DAVID B BREARLEY ~~~ CITY CLERK
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Phone #
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JLUTIONNO. 1;)775
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF VERNON APPROVING AND' AUTHORIZING THE
EXECUTION OF A SETTLEMENT AGREEMENT BY AND
BETWEEN THE CITY OF VERNON AND CHEM-TECH
SYSTEMS, INC.
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WHEREAS, CHEM-TECH SYSTEMS, INC. (IICHEM-TECH") operates
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a hazardous waste treatment facility at 3650 East 25th Street in
the City of Vernon ("CITY"), but uses an address with a Los
Angeles zip code; and
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WHEREAS, i~5~CHEM-TECH filed a petition for
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bankruptcy, Case No. LA95 18924 SB, in the U. S. Bankruptcy Court,
Central District of California; and
~EREAS, CITY fil~d a presf of alaim in aaid aotisA on
May 4., 1995 fer t.he balahce due for pro"vidinq liEJftt. ana wat.er
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s9rvioe i1\ 'ERe ill\lOlltlt of Sevon TaO\lSaRQ Fo"'" Hundred Forty Dollars
:m6l 'I'lilirt.y fs'tlr CelaL::> ($7,440.)4), wl.ich ams\lnt: i&il &il~ill peFuilir19
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settlc.mcl\t.; and
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WIiEREA3, crTl continued Lo provl.de light and WClLo;l::
se!~i~~ Lv CK!M~TECH arte~ May 4, 19951 ~nd
WHEREAS, since that date CHEM-TEqH has incurred an
unpaid debt to the CITY for ~"t~~~t.~~.rice in the
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amount of Twenty-five Thousand Two Hundred Thirty-four Dollars and
, 1~1U.. ~ '1 a-.J... ~31 } 11~.J
Seventy-seven Cents ($25,234. 77) ~~H--H'~aleR 1, H~96, which debt
is not subject to the bankruptcy proceedings; and
WHEREAS, CITY has indicated that it will discontinue
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electric and water service to CHEM-TECH unless that amount -Hi-
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paid; and
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~ 04/16/96 17:11 FAX 818 330 5818
141 002/003
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DAVID B BREARLEY 444 CITY CLERK
WHE~EAS, CHEM-TECH has offered to enter into a
Settlement Agreement with CITY to repay said debt over a six-month
period.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon
hereby finds and determines that the recitals contained
hereinabove are true and correct.
SECTION 2: The City Council of the City of Vernon
hereby approves the Settlement Agreement, a copy of which has been
presented to the City Council concurrently herewith, and the City
Council hereby orders said Agreement to be received and filed by
the City Clerk.
SECTION 3: The City council of the City of Vernon
hereby authorizes the Mayor and the City Clerk to execute said
Agreement for, and on behalf of, the City of Vernon.
SEC',rION 4: The City Clerk ,of the City of Vernon shall
certify to the passage of this resolution, and thereupon and
thereafter the same shall be in full force and effect.
APPROVED AND ADOPTED this 16th day of April, 1996.
LEONIS C. MALBU~G, Mayor
ATTEST:
BRUCE V. MALKENHORST, city Clerk
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DAVID B BREARLEY ~~~ CITY CLERK
I4J 003/003
1 STATE OF CALIFORNIA )
)ss
2 COUNTY OF LOS ANGELES )
:s I, BRUCE V. MALKENHORST, city Clerk of the City of
4 Vernon, do hereby certify that the foregoing Resolution, being
5 Resolution No. 6775, was duly adopted by the City Council of the
6 City of Vernon at a regular meeting of the city Council duly held
7 on Tuesday, April 16, 1996, and thereafter was duly signed by the
8 Mayor /Mayor Pro Tem of the City of Vernon.
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( SEAL)
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BRUCE V. MALKENHORST, City Clerk
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O'/~6/9~AX 818 330 5818
DAVID B BREARLEY -H-+ CIS & WATER DEPT IaJ 002/005
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SETTLEMENT AGREEMENT
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entered into and 41
This SETTLEMENT AGREEMENT is made,
executed in duplicate originals, either copy of which may be
considered and used as the original hereof for all purposes, as of
this
day of April, 1996,
THE CITY OF VERNON, a municipal
corporation (hereafter "CITY")
4305 s.anta Fe Avenue
Vernon, CA 90058-0805
AND CHEM-TECH SYSTEMS, INC., a
California corporation
(hereaft er~' HEM-TECH")
3650 East h street
Los Angeles, CA 90023
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?-W RECITALS: ~y
WHEREAS, CHEN-TECH operates a hazardous waste treatment
facility at 3650 East~ Street in the City of Vernon, but uses
BY AND BETWEEN
an address with a-Los Angeles zip code; and
WHEREAS, CHEN-TECH is required to pay a business license
tax based on four percent (4%) of the facility'S gross annual
revenue; and
WHEREAS, on April 7, 1995 CHEN-TECH filed a petition of
bankruptcy, Case No. LA95 18924 SB, in the U. S. Bankruptcy Court,
Central District of california; and
WHEREAS, from April 7 to December 31, 1995, CHEM-TECH
incurred an unpaid, post-petition debt to the City of Vernon for
said business license tax in the amount of Twenty-five Thousand
Two Hundred Thirty-four Dollars and Seventy-seven Cents
($25,234.77) plus interest, which debt is not subject to the
bankruptcy proceedings; and
04/16/96 17:03 FAX 818 330 5818
DAVID B BREARLEY +,+-+ CIS &. WATER DEPT tal 003/005
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WHEREAS, CITY is authorized to revoke CHEM-TECH's
business license and to discontinue electric and water service to
CHEM-TECH's property unless the debt' is paid.
NOW, THEREFORE, FOR AND IN CONSIDERATION OF THE MUTUAL
PROMISES, COVENANTS AND CONDITIONS HEREIN CONTAINED, IT IS
MUTUALLY AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS:
1. CHEN-TECH acknowledqes that it has a post-petition
liability to the city of Vernon from April 7 to December 31, 1995
in the amount of Twenty-five Thousand Two Hundred Thirty-four
Dollars and Seventy-seven Cents ($25,234.77), plus interest at the
rate of seven percent (7'> per annum compounded monthly.
2. Effective April 20, 1996, CHEM-TECH shall commence
payinq said amount to the CITY over a period of six (6) months in
the amount of Four Thousand Two Hundred Five Dollars and Seventy-
nine Cents ($4,205.79) per month plus interest.
3. CHEM-TECH will keep all payments current for all
business license taxes and electricity and water services which
are used during the term of'the Agreement, as well as any other
business license fees, permit fees, or other charqes due the City
of Vernon.
4. CHEM~TECH shall make such payments to the City of
Vernon at the City Hall, 4305 Santa Fe Avenue, Vernon, California
90058 by certified check or money order payable to the city of
Vernon.
5. In the event that CHEM-TECH fails to make any monthly
payment by the 20th of the month when due, then the entire balance
plus interest shall be due and owing immediately, and the CITY may
file a court ,action for the balance.
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04/16/96 17:04 FAX 818 330 5818
DAVID B BREARLEY +H CIS &. WATER DEPT IaJ 004/005
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6. For purposes of any such court action, CHEM-TECH
stipulates as follows:
a. That the amount of Twenty-five Thousand Two
Hundred Thirty-four Dollars and seventy-seven Cents ($35,234.77)
constitutes four percent (4\) of its gross receipts for the period
April 7 to December 31, 1995.
b. That in consideration of the city of Vernon
foregoing its right to revoke the business license of and to
discontinue services to CHEM-TECH and in consideration of CHEM-
TECH's being allowed to make payments on the delinquent account,
CHEM-TECH has entered into this Agreement in full and complete
settlement of the amount due.
c. That all of the statements in this Agreement
constitute facts which may be submitted in evidence in any court
action and that all such facts are admitted for purposes of proof.
7. If any such court action is necessary, CITY shall be
entitled to receive its costs and attorneys' fees for enforcing
the provisions of this Agreement and for collecting any additional
amounts due for business license tax and any other fees and
charges.
8. Notwithstanding any such court action, if CHEM-TECH
fails to make any payment due under this Agreement or fails to
keep current all payments for electrical and water service, as
well as any other payments, fees or charges due to CITY, then CITY
is authorized to discontinue such services to the premises upon
forty~ei9ht (48) hours written notice to CHEK-TECH. Such notice
may be delivered to CHEN-TECH or posted on the premises during
regular business hours.
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04/16/96 17:05 FAX 818 330 5818
DAVID B BREARLEY +'H CIS & WATER DEPT 1aI 005/005
9. This Agreement constitutes the entire agreement of
the parties, and no amendment or modification may be made to this
Agreement except in writing and signed by the parties.
10. This Agreement shall be governed by and construed in
accordance with California law, and any action hereunder shall be
brought in a California court.
11. In the event that any provision of this Agreement
shall be held invalid, illegal, or unenforceable, the validity and
legality and enforceability ,of the remaining provisions shall not
in any way be effected or impaired thereby.
IN WITNESS WHEREOF, CHEM-TECH and the CITY have executed
this Agreement as of the date written above.
THE CITY OF VERNON
By:
LEONIS C. MALBURG, Mayor
ATTEST:
By:
BRUCE V. MALKENHORST, City Clerk
APPROVED AS TO FORM:
By:
DAVID B. BREARLEY, city,Attorney
CHEM-TECH SYSTEMS, INC.
By:
Title:
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04/16/96 17:01 FAX 818 330 5818
DAVID B BREARLEY -+-H CIS & WATER DEPT Ial001l005
CITY OF VERNON
CITY ATTORNEY'S OFFICE
2440 S. Hacienda Blvd., Suite No. 223
Hacienda Heights. CA 91746-4770
Telephone (818) 336-3408
Facsimile (818) 330-6818
TO:
FACSIMILE. COVER SHEET
Q~~PQsao
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Company:
Fax No.:
FROM: David B. Brearley/ J. David Firzsimons
RE:
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qHEM~TECH SYSTEMS, INC. Settlement Aqreement
COMMENTS:
If you do not receive S pages in their entirety (including
this cover sheet), please call JudY&TAIlSx/Gaby at (818) 336-3408.
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DATE: April 16, 1996 TIME: .~;;:::f
This facsimile transmission may contain CONFIDENTIAL INFORMATION, which also may
be LEGALLY PRIVILEGED and which is intended only for the use of the addr.ssee(B)
named above. If you are not the intended recipient of this facsimile, or the
employee or agent responsible for delivering it to the intended recipient, you
are hereby notified that any dissemination or copying of this facsimile may be
strictly prohibited.' If you have received this facsimile in error, please
immediately notify us by telephone and return the original facsimile to us at the
~b~!e address via the postal service. Thank you.
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