07/23/1980 Meeting - Laserfiche WebLink

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. working with construction management to change designs and find ways of cutting the bid costs. The result was set forth in the memoranda before . the council. Emerging from the joint meeting between the City Council and the Civic Center Commission last night (Tuesday) were recommendations for three actions: accepting of certain bids, rejection of all but two alternates, and application of $900,000 interest money for payment. Manager referred to the recommended deferrals which will be discussed by the Civic Center Commission at their later meetings. Under terms of the bid proposals, the City must notify the contractors by Friday of this week whether or not to proceed or to go through a process of asking for time extensions which could muddy the waters and make it difficult to get these things done. Manager introduced Ed Smith to provide background information. Mr. Smith referred to the first memorandum to the design team from Douglas R. Winn dated July 22, 1980, on the subject summary cost. Mr. Smith explained that they had considered all phases of the project and projected costs for the additional phases five and six. In balancing all of this, the budget appears to be $2,640,653 over budget. The second memorandum shows how they intend to balance the budget (budget reconciliation). They went back through all phases of the project, "value-engineered" all these phases, and reduced the cost by $1,058,801. In doing this, they have not sacrificed the artistic integrity or acoustical quality of the building. Mr. Smith referred to the list of deferred items. They felt that in the two years to completion, ways might be found to pay for the deferred items. Mr. Smith pointed out the additional bond interest revenues of $900,000. The Civic Center Commission/City Council meeting asked for a listing of items by priority and the date of decision. The commi ss i on e wished to discuss these items in more detail. Mr. Smith referred to a paper entitled Interest Income--Performing Art Center Bonds. This explains how they have spent the interest income and the reserve balance available ($1,153,646) . It also showed the reserve after subtracting $900,000 ($1,253,646). Mr. Smith said that this is considered a conservative appr.oach. The $900,000 is needed to cover the inflationary factor. Mr. Smith referred to the next page entitled Recommendation No.1, Phase 4, which indicates the contracts opened June 26 and the amount negotiated in the second column. There are two items to be rebid. Mr. Smith referred to the page entitled Recommendation No.2, Phase 4. When the bids came in June 26, the commission direction was that these be put out for alternate bids in the hope of acquiring some of these alternates. That has proved impossible. The recommendation is to reject all the alternate bids except numbers ten and eleven, which are credits. The Green Room and the Rehearsal Hall are being funded by the Performing Arts Foundation. In the hope of being able to value-engineer the cost for these two facilities, they have been put up for rebid. It wi 11 provide an opportunity to evaluate them in light of the new conference center and hotel. Recommendation No.3, Phase 4, was for the City Council to authorize the use of $900,000 of bond-interest fund. , 7/23/80--7