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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 __ , Title: C vvta" T tle: yv Date: Date: l 1 , ov d as to fo ` , � �, 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