2002 AGN JUL 16 I15 - Laserfiche WebLink

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^%Xr.TVW^ RCr<IVM I FOR COUNCIL MEETING OF JOY 16, 2002 Honorable Mayor and City Council A: City Attorney �EGT: Amendment to Engineering, Procurement and Agreement for Power Generation Project with DATE: July 16, 2002 BACKGROUND: During the City Council Meeting on May 21, 2002, the Electric Utilityf enter into an Engineering, Procurement And Construction Agreei Generation Project with Moresco: The Agreement provides for 'd generating facility with a nominal capacity rating not to exceed 49 mega needs of the City of Cotton Electric Utility. DISC U SSIONtANALYS I5: Following execution of the Agreement, it became evident that certa activities in the Agreement should be amended to reflect the circumsta the Project. As a result, an Amendment to the Agreement has been di Item #'15 authorized to t For Power cpment of a is to meet the deadlines and 9s surrounding The Agreement provides that the City is required to pursue a validation proceeding in court to validate the Agreement against a future challenge. However, upon implementation of the Agreement, it became evident that the time required for such a proceeding would be in conflict with procedures and deadlines for successfully issuing the bonds for financing the Project. As aresult, the Amendment would remove the obligation for a validation proceeding. The Amendment would also revise some of the prices for certain phases of the Project. However, such revisions would not increase the total price for the Project. As a result of changes to the timing for certain tasks, the Amendment would include a revised schedule for completion of the Project. The new target date for completion would be May 15, 2003. The Amendment would also include other changes to clarify some of the obligations between the parties. ALTERNATIVES;