Resolution No. 6840
of'
1 RESOLUTION NO. 6840
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF VERNON APPROVING AND AUTHORIZING THE
3 EXECUTION OF A LEASE AND SERVICE ORDER
AGREEMENTS BY AND BETWEEN THE CITY OF VERNON
4 AND IONICS ULTRAPURE WATER CORP. PROVIDING FOR
PURIFIED WATER FOR THE OPERATION AND
5 MAINTENANCE OF THE TURBINE GENERATORS
6 WHEREAS, The City of Vernon since 1987 has had a lease
7 with California Purification and Recycling, Inc. to provide and
8 maintain a reverse osmosis and deionizer system (R.O./D.I. System)
9 to purify water for the operation of the turbine generators which
10 will expire on or about August 31, 1996; and
11 WHEREAS, California Purification and Recycling, Inc. has
12 been acquired by Ionics Ultrapure Water Corp. which has requested
13 execution of a revised lease agreement; and
14 WHEREAS, the City of Vernon desires to enter into a
15 lease for an R.O./D.I. System with Ionics Ultrapure Water Corp.
16 for an additional three (3) year period; and
17 WHEREAS, Ionics ultrapure Water Corp. will provide
18 maintenance for the R.O./D.I. System pursuant to two Service Order
19 Agreements for a monthly cost of Two Thousand Dollars ($2,000),
20 plus Fifty-one Dollars and Seventy Cents ($51.70) for chemicals as
21 needed; and
22 WHEREAS, Kenneth J. DeDario, the Director of Light and
23 Power, has recommended approval of said Lease and said Agreements.
24 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
25 THE CITY OF VERNON AS FOLLOWS:
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SECTION 1: The city council of the city of Vernon
27 hereby finds and determines that the recitals contained
28 hereinabove are true and correct.
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SECTION 2: The City Council of the City of Vernon
2 hereby approves the Lease and the two Service Order Agreements,
3 copies of which have been presented to the City Council
4 concurrently with this resolution, and the City Council hereby
5 orders said Agreement to be received and filed by the City Clerk.
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SECTION 3: The City Council of the City of Vernon
7 hereby authorizes the Mayor and the city Clerk to execute said
8 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
10 certify to the passage of this resolution, and thereupon and
11 thereafter the same shall be in full force and effect.
12 APPROVED AND ADOPTED this 20th day of August, 1996.
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17 BRUCE V. MALKENHORST, City Clerk
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STATE OF CALIFORNIA )
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COUNTY OF LOS ANGELES )
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. 6840, was duly adopted by the City Council of the
City of Vernon at a regular meeting of the city Council duly held
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on Tuesday, August 20, 1996, and thereafter was duly signed by the
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Mayor of the City of Vernon.
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BRUCE V. MALKENHORST, City Clerk
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(SEAL)
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GUARANTEED ~INTENANCE 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
addi tional 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 ~INTENANCE WARRANTY
7.
regards
System:
IONICS ULTRAPURE WATER CORP. agrees to the following conditions as
to operation and maintenance of the Reverse Osmosis Pure Water
a) The
technician.
service.
system will be serviced on a weekly basis by
A status report will be supplied to the Lessee
a trained
after each
b) An operating log will be maintained at the system site for review
by the Lessee.
c) IONICS ULTRAPURE WATER CORP. 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 "percent rej ection" 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) IONICS ULTRAPURE WATER CORP. 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, IONICS ULTRAPURE WATER CORP. 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.
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. I f 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.
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IONICS ULTRAPURE WATER CORP.
7777 INDUSTRY AVENUE
PICO RIVERA, CALIFORNIA 90660
(310) 942-2200
LEASE
IONICS ULTRAPURE WATER CORP., hereinafter called "Lessor," and CITY OF
VERNON, whose address is 4305 Santa Fe Avenue, Vernon, CA 90058 (Equipment
location: Project Site, 2715 East 50th Street, 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 one (1) R.O. /D. I. System all in
accordance with CALIFORNIA PURIFICATION & RECYCLING offering of June 22,
1987. This Lease shall become effective on or about September 1, 1996, and
shall continue for a full term of three (3) years.
RENTALS
2. Lessor shall maintain said System 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 accordan-::e t,'i th the t€~ms of this Lease. Any identification
labels attached to Lease property shall not be removed.
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.
TEIWINATION
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 0 cents per gallon of Product for the
first 174,000 gallons of Product per month and 0.11 cents per gallon above
174,000 gallons. The minimum rental shall be $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.
(c) This agreement shall not be amended or altered in any manner
unless such amendment or alternation is in writing.
EXECUTED ON
J' '7?46-9' 6
, 1996 at f"h~
"LESSOR"
IONICS ULTRAPURE WATER CORP.
By: ~.; ;: 7? t-k~y,-
"LESSEE"
CITY OF VERNON
BY:~~'
/" ~onis C~al1:) rg, ya~~
ATTEST: / L- ~ 'l<<4~
Bruce V. Malkenhorst, City Cl~rk
APPROVED AS TO FORM:
S)~ .~. \', A mff:
David B. Brearley, City ttorney
¦ ~ Sales Person Roberson Customer Number I 20-3240
~!r
11 ¦ ~ ¦ ¦ ¦ v ~ Effective Date
TONICS ULTRAPURE WATEq CORP.
Expiration Date
8/31 /99
SERVICE ORDER AGREEMENT
INSTALLATION OR DELIVERY ADDRESS BILLING ADDRESS
Vernon Power Plant City of Vernon
Company Company.
Address 2715 East 50th Street Attn:
Location Project Site Address 4305 Santa Fe Avenue
aty Vernon state CA Z;p 90058 city Vernon state CA zip 90058-0805
1st Contact Jim Siegert Phone 213-588-0223 P.O. Number X
2nd Contact Bob Kipness Phone Payment Terms Net 30
EQUIPMENT OWNERSHIP:
® TONICS ? CUSTOMER ? NEW ®RENEWAL ~ UPGRADE ? ADDITION ®TAXABLE Tax Exempt
Equipment On Site TYPE OF SYSTEM: ®RO ? DI Billing Information
$ ? RO Service _
8 gpm RO system rented to account
- $ 2,000.00 ?x Per Month Rental ( as per lease )
4 visits per month - no additional charees for RO service or $ ? Per Exchange
~I
9 \ ~ ,.,~r•;, II
~~~stem parts (included in rent payment). $ ? . Per,Exchan e / `u
,tea;
$ ? Per Exchange
In accordance with proposal Lease Agreement, 9/1/96 $ ? Pre Filter " `
$ ? Post Filter
$ ? UV Lights
$ ? Labor Rate Per Hour
$ ? Emergency Service
$ ?
$ ?
Quality Monitor(s):
~ ) $ ?
( ) $ ?
$ ?
Quality Specifications $ ?
MEGOHM: FILTRATION: BACTERIA:
$ ?
Other: Remarks:
All water over 174 000 Qallons per month is charged (a, 11 cents per Must take ~allona~e reading at the same time each month. _
gallon (This cost is in addition to rent.)
I®nics lJltrapure Water C®rpe Bruce Vo Malkenhorst City of Vernon
Authorized Representative (please pri Company Name
Authorized Representative ®ate Authorized Signature ®ate
WHITE (Customer) PINK (Customer Service) GOLDENROD (Salsa) CANARY (Marketing)
Sales Person Roberson Customer Number 20-3240 J
~n , ¦r~~~~7C~
~ ~ ~ V Effective Date
IONICS ULTRAPURE WATER CORP. 9/1/96
' Expiration Date
8/31 /99
SERVICE ORDER AGREEMENT
INSTALLATION OR DELIVERY ADDRESS BILLING ADDRESS
Company Vernon Power-Plant com an City of Vernon
P Y,
Address 2715 East 50th Street
Attn:
Location Project Site Address 4305 Santa Fe Avenue
city Vernon state CA Z;p 90058 City Vernon state CA zip 90058-0805
1st Contact Jim Siegert Phone#: 213-588-8811 P.O. NumberX
2nd Contact Bob KipneSS Phone#: Payment Terms Net 30
EQUIPMENT OWNERSHIP:
® IONICS ? CUSTOMER ? NEW ®RENEWAL ? UPGRADE ? ADDITION ®TAXABLE Tax Exempt
Equipment Oh $Ite -TYPE OF SYSTEM: ? RO ®DI Billing Information
$ ? RO Service
Two Banks:
• $ ? Per Month Rental ( )
Each bank has (2) 3.6 cubic feet mixed bed units- (8000 series) $ 51.70 ?x per Exchange ( 1 - 8000 )
$ ? Per Exchange (
$ ? .Per Exchange ( ) w
$ ? Pre Filter "
$ ? Post Filter ~~:1
$ ? UV Lights
$ ? Labgr Rate Per Hour
$ ? Emergency Service
?
Quality Monitor(s): $ ?
~ ) $ ?
~ ) $ ?
Quality Specifications $ ?
$ ?
MEGOHM: 1 FILTRATION: 1u BACTERIA:
$ ?
Other: Remarks: ~
NORMAL EXCHANGE WILL BE 1 - 8000 unit = $51.70
Ionics lJltr~puire Water Colrpo x City of Vernon
Authorized Representative (please prink Company Name
Authorized Representative Date Authorized Signature Date
WHITE (Customer) PINK (Customer Service) GOLDENROD (Sales) CANARY (Ariarkating)
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INTER-OFFICE MEMORANDUM
DATE: August 27, 1996.
TO: Dolores Fonseca, Accountant
a
FROM: Gloria J. Orosco, Chief Deputy City Cler~~~
SUBJECT: SERVICE ORDER AGREEMENTS (2) AND LEASE AGREEMENT-
- WITH IONICS ULTRAPURE WATER CORP.
Attached hereto is one fullyexecuted duplicate original of each
of the above referenced Service Orders and one .fully executed
duplicate original of the Lease Agreement. I have also attached
Resolution No. 6840 pertaining to same.
Will you please forward the documents to Ionics and issue
Purchase Orders as appropriate for each of the service order
agreements. •
I have retained one original lease agreement and a copy of the
service order agreements for our files. •
GJO/hr
Attaclim~nts
cc: Ken DeDario (with attachments)
CITY COUNCIL ~ , DAVID B. BREARLEY
LEONIS C. MALBURG p ~ City Attorney
Mayor FAX: (818) 330-5818
,J~ KEVIN WILSON .
THOMAS A. YBARRA
Mayor Pro-Tem ~i Director of Community Services & Water
` FAX: (213) 588-2761
Wm. "BILL" DAVIS
Councilman KENNETH J. DeDARI0
Director of Light & Power
H. "LARRY" GONZALES Q FAX: (213) 583-1983
Councilman '
DAVE TELFORD
W. MICHAEL McCORMICK Fire Chief
Councilman
FAX: (213) 581-1385
CITY HALL
BRUCE V. MALKENHORST LOUIS ROSENKRANTZ
City Administrator/City Clerk 4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058 Police Chief
FAX: (213) 581-7924 TELEPHONE (213) 583-8811 FAX: (213) 581-1178
August 14, 1996
.City Council
City of Vernon
Honorable Members:
The lease agreement .and service order agreements with California
Purification and Recycling, Inc. providing for purified water for
operation of the turbine generators expires August 31, 1996. The
company has now. been acquired by Ionics, Inc. and is willing to renew
the agreement at a monthly cost of $2,000 plus a.-y cost for
chemicals (no change from previous agreement).
This ,has-.been reviewed by staff of -the Light and Power Department and
the City Attorney, and it is hereby recommended, that both the lease
agreement and the service order agreements be approved and executed
effective September 1, 1996 thru August. 31, 1999.
Very truly yours.,
l ~'?/,rte
Bruce V. Malkenhorst
City-Clerk
GJO/hr
council\ltr