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Home My WebLink About7149RESOLUTION NO. 7149 A RESOLUTION APPROVING ADDENDUM NO. 1 TO THE APRIL 22, 1991 PURCHASE AGREEMENT BETWEEN PUEBLO, A MUNICIPAL CORPORATION AND ZUPAN ENTERPRISES, INC. RELATING TO LANDFILL USER FEES AND PAYMENT THEREFOR AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME WHEREAS, the user fees and charges to City for governmental use of the landfill will average approximately $4,000 per month at a discounted charge of $2.50 per cubic yard, and WHEREAS, Zupan Enterprises, Inc. has proposed that in exchange for governmental use of the landfill by the City without charge for five (5) years, the City transfer approximately twenty - four (24) acres of land to Zupan Enterprises, Inc. and prepay $40,000 for landfill fees and charges to be used by Zupan Enterprises, Inc. to complete closure of Phase I and disturbed areas that lie outside the original Certificate of Designation, and WHEREAS, such exchange would be of benefit to the City and result in cost savings to the City over said five (5) year period; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1 The Addendum No. 1 to the April 22, 1991 Purchase Agreement between Pueblo, a municipal corporation and Zupan Enterprises, Inc. relating to landfill user fees and transfer of land, a copy of which is attached hereto, having been approved as to form by the City Attorney, is hereby approved. SECTION 2 The President of the City Council is authorized to execute in the name of the City and deliver Addendum No. 1 and the quit claim deed transferring to Zupan Enterprises, Inc. the property referred to therein and the City Clerk is directed to affix the seal of the City thereto and attest same. SECTION 3. The $40,000 prepayment for landfill fees and charges is authorized to be paid out of Account No. 58- 1993 -8520, South Landfill Trust. ATTEST: y Cler INTRODUCED: June 14, 1993 By SAMUEL CORSENTINO Councilperson APPROVED: A v It Presid6nt of the City Council TJ 67.44 -2- ADDENDUM NO. 1 THIS ADDENDUM NO. 1 entered into as of the 14th day of June, 1993 between Pueblo, a municipal corporation (the "City ") and Zupan Enterprises, Inc., a Colorado corporation (the "Zupan "), WITNESSETH: WHEREAS, City and Zupan entered into a Purchase Agreement dated April 22, 1991 concerning the purchase and operation of a solid waste landfill, (the "Purchase Agreement "), and WHEREAS, City and Zupan are desirous of modifying the Purchase Agreement; NOW, THEREFORE, in consideration of the following covenants and conditions, City and Zupan agree as follows: 1. Notwithstanding any provisions of the Purchase Agreement to the contrary, Zupan will allow the City to utilize the Landfill for governmental use and will accept Solid Waste and wastewater treatment plant sludge (biosolids) generated by the City and any of its departments or agencies without fee or charge except Colorado User Fees imposed by X25 -16 -104.5 C.R.S., or as same may be subse- quently amended, for a period of five (5) years from June 1, 1993 to May 31, 1998. Thereafter, Zupan agrees to grant to City a discount for utilization of the Landfill for governmental use in an amount to be determined by mutual agreement of the City and Zupan. 2. In consideration of Zupan granting to the City five (5) years of free use of the Landfill as provided in paragraph 1 above, City will: (a) convey to Zupan by quit claim deed the land shown on the attached Exhibit "A" consisting of approximately twenty -four (24) acres. Said land shall become part of Zupan's land as defined in the Purchase Agreement and subject to the provisions thereof. (b) pay to Zupan an amount not to exceed $40,000 to be used solely by Zupan to purchase earth moving and compaction services necessary and required for the closure of Phase I and disturbed areas that lie outside the original Certificate of Desig- nation. Zupan shall submit to the Director of Finance certified requests for payment for the cost of such services with supporting documentation, and the Director of Finance shall remit, within 10 days after receipt thereof, the cost of services shown by each certified request for payment and supported by such documentation in a total amount not to exceed $40,000. 3. If Zupan fails to complete closure of Phase I and disturbed areas that lie outside the original Certificate of Desig- nation in compliance with the requirements of the Certificate of Designation and applicable Rules and Regulations as defined in the Purchase Agreement, and obtain a certificate to that effect from KLH Engineering Consultants, Inc. on or before July 2, 1993, this Addendum No. 1 shall terminate and Zupan shall immediately repay to City all sums advanced and paid by City to Zupan pursuant to para- graph 2(b) above. If Zupan completes closure as above provided and thereafter fails for any reason to provide and allow City five (5) years of free use of the Landfill, Zupan shall repay to City a pro -rata amount equal to 1/60 of the total amount paid to Zupan under paragraph 2(b) plus the fair market value of the land conveyed to Zupan under paragraph 2(a) for each month Zupan fails to provide such free use of the Landfill to the City during said five (5) year period. 4. Nothing contained herein shall release, discharge or waive or be construed to be a release, discharge or waiver by City of any of Zupan's obligations under the Purchase Agreement including with- out limitation the obligation to timely close and revegetate Phase I and disturbed areas that lie outside the original Certificate of Designation. 5. The Purchase Agreement as amended by this Addendum No. 1 shall remain in full force and effect and be binding upon and inure to the benefit of City, its successors and assigns and Zupan and its approved successors and assigns. 6. If any provision of this Addendum No. 1 conflicts with any provision of the Purchase Agreement, the provisions of this Addendum No. 1 shall control and prevail to the extent of such conflict. Executed at Pueblo, Colorado the day and year first above written. [S E A L] PUEBLO, A MUNICIPAL CORPORATION ATTEST: By Ci Clerk Preside of the City Council [S E A L] ZUPAN ENTERPRISES, INC. 7 ATTESU: . ,e� u-- -- By Secretary President C u' MIARANTY In consideration of the City of Pueblo entering into the fore- going Addendum No. 1, Joe P. Zupan does hereby personally guarantee the performance of the Purchase Agreement and Addendum No. 1 by Zupan Enterprises, Inc. In the event of any default by Zupan Enterprieses, Inc. under the Purchase Agreement or Addendum No. 1 and written notice thereof is given to Joe P. Zupan, Joe P. Zupan will perform or cause to be performed all the terms and provisions of the Purchase Agreement and Addendum No. 1 required to be per- -2- formed by Zupan Enterprises, Inc. This Guaranty is unconditional and may not be revoked by Joe P. Zupan and shall be binding upon Joe P. Zupan, his heirs, personal representatives, successors and assigns. Signed at Pueblo, Colorado this T H day of June, 1993. 77 7 Joe P. 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