Resolution Number 86-6-17-9RESOLUTION NO. 86-6-17-9 18 9
DECLARING DEFAULT AND TERMINATION OF PERFORMANCE
OF OBLIGATIONS - WATER CONSERVATION EOUIPMENT
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SAN JUAN CAPISTRANO, CALIFORNIA, DECLARING
A DEFAULT AND TERMINATION OF PERFORMANCE OF
OBLIGATIONS OF WATER CONSERVATION EQUIPMENT
AGREEMENT (XEROSYSTEMS, INC.)
WHEREAS, the City of San Juan Capistrano entered into a
water conservation agreement with Xerosystems, Inc. (hereinafter
referred to as Contractor) for the installation of water
conservation equipment on City -owned and -operated facilities on
or about January 21, 1986; and,
WHEREAS, Paragraph 8 of said agreement required
Contractor to complete installation of said equipment on or about
April 17, 1986; and,
WHEREAS, Paragraph 13 of said agreement required
Contractor to post a $20,000 surety (or letter of credit) for the
purpose of insuring the City for damages in the event of default
by Contractor; and,
WHEREAS, the Public Works Department has represented to
the City Council that the required work was not completed within
the required time period; and,
WHEREAS, the City has been placed on notice of an
assignment of Xerosystems' rights and obligations under the
agreement to a Herbert Stileau, Inc.
NOW, THEREFORE, BE IT RESOLVED by the City Council of
the City of San Juan Capistrano that the Council hereby finds
that Xerosystems has defaulted in the performance of the
agreement and that based on said default, the City hereby
terminates the said agreement. City Staff is further directed to
take appropriate administrative actions to allow for the release
of the security filed by the Contractor pursuant to Paragraph 13
of the agreement.
PASSED, APPROVED AND ADOPTED this 17th day of
June , 1986 .
ATTEST:
/<'� (�- � 7
KENNETH E. FRIES , MAYOR
C 1' /' aj"a A' '
CITY LERK
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190
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF SAN JUAN CAPISTRANO )
I, MARY ANN HANOVER, City Clerk of the City of San Juan
Capistrano, California, DO HEREBY CERTIFY that the foregoing is a
true and correct copy of Resolution No. 86-6-17-9 , adopted by
the City Council of the City of San Juan Capistrano, California,
at a regular meeting thereof held on the 17th day of
June 1986 , by the following vote:
AYES: Councilmen Buchheim, Hausdorfer,
and Mayor Friess
NOES: None
ABSENT: Councilmen Schwartze and Bland
(SEAL) �t�!/'
MARYAT CI Y CL RKCI Y CL RK
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