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~
•
'\