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HomeMy WebLinkAbout0381.000- , < - THE HONORABLE CITY COUNCIL Palo Alto. calIfornia -':) 5 Reviled preliminory Agreement with Varian Associates Members of the council: This report recommends that Council approve the attached Amendment to the Preli.inary ReiMbursement Agreement by and bet~een tbe City of ¥alo Alto and Varian Associates, Inc~. and authorize the Mayo~ to execute the Amendment.. This viiI allow ci.ty staff to continue Engineering for serving power to a new Varian Associates electric load. A final agr~~ment between the City and Varian for the total project will be brougbt to Council at a later date. This report also recommends that Council authorize the City Manager or his designate to approve any future amendments to this pre I iDinary aqreement .. Backqrognd During the last year l Varian has been discussing with staff the possibility of adding a new electrical load of such a nature that it viii require the electric utility to provide separate ~lectrical c~cilities. The Council previocsly approved the preliminary agreement (CMR:4~:9 dated August 3, 1989) Which allOWed staff to order lonq lead items and begin engineering. The preliminary agreement required Varian t~ reimburse the City for engineering services to a Ilaxi~um of $7,500.00 (a lim.it established by Varian) .. The costs for engineerinq to date have reached this limit and enqineering is on bold pending approval of this Alnendment to the preliainary agreement. Varian has requested that the new facilities be available in January 1991. Although the formal Agreement for the project Is still beinq neqotiated... Varian would like staff to continue engineering. The Amendment requested in this report increases the Ii_it for the City's engineering costs to be reimbursed by varian from $7~50Q to $40,000 and will allow engineering to proceed. In case the project does not materialize, the preli_inary aqreement requires varian to reimburse the City for all angineerinq expenses and canc~llation charges trom equipment manufacturers. Scfticient funds are in the FY 89/90 CIP to cover the engineering: costs ~ exaun, ° L • • , -. , \ .> '0-,.'. \ \ -'\ • \ • , \. ... <'" , . .~~~, l o o RecommendatIon Staff recommends that council. 1. Approve the attached Amendment to the Preliminary ReiMbUrsement Agreement ~y and bet~een the city of Palo Alto and Varian Associates" Inc .. to increase the li.it for the City I S engineering: cost.s to be reimbursed by Varian from $1,5-0'0 to $40,000 and: 2.. Authorize the. Mayor to execute the Amendment on behalf of the City, and; 3. Autbori~e. the City M.anaqer or his -designate to approve and execute any Cuture revisions of the Preliminary Reimbursement Aqreement. .. Respectfully sub.itted, .:Xc .. -. ~ [ u '2&. t I LAAAY W. STARR Electrical Engineerinq Manager Attachments CIUt.,8111 • -- .. : -.. " ':~~. -" 1 l " - o AMENDKEIIIT TO PRlILXIiIXXUY ItBIlIlItlltSEKEN'r ACREEMEIIIT BETWE&lf CI'l'T o:r PALO AL'l"O .&lID '9U.IAII .ASSOCXAns. rile. THIS AHENOHENT to the PRELllilIlIARY REIMBURSEMENT AGREEKENT BETWEEN CITY OF PALO ALTO AND VARIAN ASSOCIATES, INC .. is made and entered into this day of • 1990, by and bet~een the CITY OF PALO '"AL'TQ,. a municIpal c:orporation of California,. hereinafter referred to as ·CITY,-and VAR1AN ASSOCIATES, INC~. hereinafter referre~ to as ·VARIAN-; RIC J r A It .: WHEREAS, CITY and VARIAN pr-eviously entered into a Preliminary Reimbursement Agreement (the -Agreement-) under wbich V~AN agreed to reimburse CITY for preliminary CQsts associated with CITY's purchase and installment of utilities equipment needed loy VARIAN; .. nd WHEREAS. both parties desire to amend said Agreement to provide for additional r~imbursement to CITY from VARIAN tor such costs; NOW~ THEREFORE 1 in consideration of their mutual covenants 1 the parties hereto agree as follows: SECTION 1~ The following paragraph of the Agree~ent is hereby amended to reaQ as ~ollows! iI. Paragraph 2. -2.. If at any point during the contract. Varian decides to cancel the order, Var[an shall reimburse city for all of its engineering and bid preparation: costs {such costs not to exceed Forty Thoosand Oollar$ ($40 1 000]) to the date of cancellation and all equipment cancellation charges incurred by ci ty ptlrsuant to the equipment bid~ Tais preliminary agreement will remain in effect until a s~sequent contract for this project is executed by and between Varian and City pursuant to City's Utilities Rules and Requlations.. The equipment anticipated to be included in such purchase includes the following: a.. Transformer-69 to 12 .. 47kV. LTC b. c. Metalclad, shelter isle, 15kV switchgear One set of PcJ1ater Fuses-69kV (including three spares)· SEctION 2. Except as herein modified l all other provisions ot said Agreement shall remain in fu11 force and effect .. .. . ) .-. • .. "',., ~ " '-'1,"'" , : , l o o IN WITNESS WHEREOF, t.he parties hereto have executed this Amendment the day and year first above written. ATTEST: city Clerk APPROVED AS TO FORM: Assistant City Attorney APPROVED: Assist~nt City Manager Director of Finance Risk Manager Director of utilities kk6j7j90bdc CIT~ OF PALO ALTO: ~:~~----------------­Hayor VARIAN ASSOCIATES~ INC. Taxpayer Identification No~ • '\