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Resolution No. 96081 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 9608 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON TERMINATING ENCROACHMENT LICENSE AGREEMENT NO. 389 BY AND BETWEEN THE CITY OF VERNON AND RAYMAR PRODUCTIONS WHEREAS, on August 18, 1998, the City Council of the City of Vernon adopted Resolution No. 7208 approving Encroachment License Agreement No. 389 (the "Agreement") by and between the City of Vernon and RayMar Productions ("RayMar") to allow for the installation and maintenance of up to 100 transit advertising shelters; and WHEREAS, by letter dated August 29, 2007, the Director of Community Services & Water notified RayMar that the bus shelter located at the northeast corner of Leonis Boulevard and Downey Road in the City of Vernon was damaged, but no response was received from RayMar by the City; and WHEREAS, by letter dated February 4, 2008, the Director of Community Services & Water, notified RayMar that the City will seek to terminate Encroachment License Agreement No. 389 if RayMar did not repair all of the transit shelters to a first class standard within thirty (30) days, which letter was returned marked "undeliverable;" and WHEREAS, the Director of Community Services & Water has determined that RayMar is in violation of the Agreement by (a) its failure to clean the shelters and the area within a five foot perimeter on a twice monthly basis as provided in Section 4 of the Agreement; (b) its failure to compensate the City as outlined in Section 12 of the Agreement; and (c) its failure to maintain insurance as provided in Section 18 of the Agreement; and WHEREAS, Section 13 of the Agreement provides that, upon any 1 termination of the agreement, RayMar shall immediately remove all of 2 its shelters, including foundations, and if RayMar fails to do so 3 within sixty (60) days after the notice to do so is mailed by the City, 4 City may remove such shelters and RayMar shall pay to the City the cost 5 of such removal; and 6 WHEREAS, Section 15 of the Agreement provides that the City 7 may terminate the Agreement for substantial cause after giving RayMar 8 prior notice and opportunity to be heard prior to such termination; and 9 WHEREAS, the Director of Community Services & Water has 10 recommended that the Agreement with RayMar be terminated; and 11 WHEREAS, the City Council believes it is in the best interest 12 of the City of Vernon to terminate the Agreement. 13 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE 14 CITY OF VERNON AS FOLLOWS: 15 SECTION 1: The City Council of the City of Vernon hereby 16 finds and determines that the recitals contained hereinabove are true 17 and correct. 18 SECTION 2: The City Council of the City of Vernon hereby 19 terminates Encroachment License Agreement No. 389 with RayMar. 20 SECTION 3: The City Council of the City of Vernon hereby 21 directs the City Clerk, or her designee, to send a copy of this 22 Resolution to: 23 RayMar Productions Attn. Raymond A. Peloso 24 P.O. Box 5370-286 25 Santa Ana, CA 92704 26 27 28 - 2 - 1 SECTION 4: The City Clerk of the City of Vernon shall 2 certify to the passage of this resolution, and thereupon and 3 thereafter the same shall be in full force and effect. 4 APPROVED AND ADOPTED this 5th day of May, 2008. 5 l 6 Name: Leonis C. Malburg 7 8 Title: Mayor 9 AT EST: 10 11 UELA GIRON, City Clerk 12 13 14 15 16 17 18 19 20 21 22 2 3_ 24 25 26 27 28 - 3 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I, MANUELA GIRON, City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 9608, was duly adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Monday, May 5, 2008, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. (SEAL) b&NUELA GIRO City Clerk - 4 - 4305 Santa Fe Avenue, Vernon, California 90058 Telephone (323) 583-8811 May 21, 2008 Mr. Raymond A. Peloso RayMar Productions P.O. Box 5370-286 Santa Ana, CA 92704 Re: Termination of Encroachment License Agreement No. 389 Dear Mr. Peloso: Transmitted herewith is a copy of Resolution No. 9608, terminating the above -referenced encroachment license agreement, approved by City Council on May 5, 2008. If you have any questions regarding this matter, please call Mr. Kevin Wilson, at (323) 583-8811 ext. 245. Very truly yours, ellY Gi n City Clerk NG:dr Enclosure c: Martha Valenzuela Kevin Wilson Resolution No. 9608 Encroachment License Agreement No. 389 Excfusivefy Industfiaf