HomeMy WebLinkAbout000921 Original Contract City of Port Angeles
Record # 000921
SETTLEMENT AGREEMENT TO PAY
DELINQUENT/DISPUTED UTILITY BILLS
This Settlement Agreement is made between the City of Port Angeles (hereinafter
referred to as the "City") and Jastmar, Inc (dba Hi Tech Tan and Speed Klean), a Washington
corporation(hereinafter referred to as "Jastmar"and 81' St Bridges Grill)
In consideration for the benefits to be derived from compliance with this Agreement, the
parties recite and covenant as follows:
1. Recitals.
A. The City claims that Jastmar owes to the City the sum of$25,568.89 for unpaid
utilities, including wastewater billed on a per fixture wastewater rate. This amount
includes interest and penalties in the amount of $13,666.20. If, Jastmar had
elected the consumption based waste water rate, rather than a per fixture based
waste water rate, the difference in the amount due would be $15,395.80 less.
B. Jastmar acknowledges that it is delinquent in payment to the City for utility
services it has furnished to Jastmar and that the City, under both state law and city
ordinance, could now disconnect utility services to Jastmar.
C. Both parties recognize that disconnection of utility services would cause Jastmar
to immediately halt its business operations and to terminate its employees.
2. Agreement to pay past due amounts.
A. For the purposes of satisfying the delinquent utility charges owed by Jastmar to
the City of Port Angeles and of securing continued utility services to Jastmar's
facilities, Jastmar shall pay to the City $1500.00 eight months of the year and
$1000.00 four months of the year from the date of this contract. These payments
represent a balance based on a budgeted payment amount of 1150 per month plus
$183.33 towards the balance due. The total balance due of$4204.79 includes a
reduction of$7697.90, which is 50% of the difference between the consumption
based waste water rate and the fixture based waste water rate. The balance due
amount does not include interest and penalties. Payments will be due and payable
between the last day of each month and the 5"' day of the following month,
beginning on May 31", 2015.
B. At the end of each calendar year, the budget-billing amount will be recalculated to
ensure the yearly charges are budgeted correctly to pay the actual charges accrued
during the year. At that time, the remaining past due amount will be included in
the budgeted amount to so that the principal balance will be reduced.
C. So long as the payments required by paragraphs A and B above are timely made
in full and kept current, the City agrees it shall not disconnect utility services to
Jastmar's facilities.
D. The City agrees that it shall accept, as full and complete compromise and
satisfaction of the delinquent utility payments now accrued, the monthly payment
described in paragraph A and B above. So long as Jastmar remains in good
standing with the terms of this Agreement, no additional interest and penalties
will accrue and the City will waive the interest of $13,666.20 and the 50%
between the consumption-based waste water rate and the per fixture-based waste
water rate.
E. In the event Jastmar fails to timely and fully make any payment required by
paragraphs A or B above, the City may declare this agreement to be terminated.
In that event, the full amount of interest and penalties, including the full per-
fixture based waste water rate calculated as if this Agreement had not been made,
shall immediately become due and payable; and the City may disconnect utility
services and pursue its legal remedies to collect the sums due.
F. During the duration of this Agreement, Jastmar may not change its wastewater
rate and must use the consumption-based waste water rate.
3. Entire Agreement.
This Agreement constitutes the entire agreement between the City and Jastmar
and it supersedes all prior communications and proposals, whether electronic,
oral, or written between the City and Jastmar with respect to the delinquency
covered by this Agreement.
IN WITNESS WHEREOF, the City and Jastmar have executed this Agreement as of the date and
year last written below.
CITY qF PT ANGELES 'Jastmar, C
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Title: C vvta" T tle: yv
Date: Date: l 1 ,
ov d as to fo
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William E. Bloor, ity Attorney
At 6 w V"aw
Je nifer Veneklasen City Cleric
G\GROUP\PINANCE\CUSTOMER SERVICE\Delinquency Data\Payment ContractsVASTMAR NEW PILE