10/08/1980 Meeting - Laserfiche WebLink

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I " -. 1 ,', " , , been transferred and consultant mark-ups are not included in the cost reductions. Contractors are bei ng asked to ,reduce their charges. About $3 million has been eliminated from the project and he feels he has a good handle on it. After . discussion with the construction manager, it was concluded that extra work would be based on the same projected fees. In regard to the EPAC budget, the parking structure budget has,been added in to the total cost. This information is the same that was presented to the Civic Center Commission and they have approximately $17 million under contract at this time. Mr. Smith stated that project office costs are noted in the breakdown. They have tried to economize by contracting services. Office space has been taken out of the project expenses to reduce the total construction costs. Included are professional services costs for the bond sale which,had not been anticipated. The total Eugene Arts Foundation commitment is $447,812 and the need now is to know when the money will be forthcoming. Mr. Smith stated that items are prioritized on the buy-backs and deferral list. He indicated that he would answer questions. Mr. Obie stated that Mr. Smith had done a good job of outlining where the City is now and how it got where it is. He does not feel that Mr. Jacob's concerns regarding architectural fees have been directly addressed. The Arts Foundation suggested a reduction. Mr. Obie asked if there needs to be discus- sion with the architect regarding reduction. Mr. Smith responded that this has been happening monthly. When the costs increase, so do the architect's fees. The architectural fees are also based upon actions taken to extend the scope of the project. The question is whether items are extras or if they are part of - the project. That is where he tries to negotiate. Mr. Obie stated that inflation has been a big factor, but the amount of work remains the same. He asked if the City has to pay for overages. Mr. Smi th responded that the City does have to pay for overages but that is where he tries to negotiate. He used the example of the Rehearsal Hall and Green Room. Mr. Obie noted that the Eugene Arts Foundation wanted to ask the architect to forego fees caused by inflation. He asked if this had been addressed with the architect. Mr. Smith stated that he is negotiating this right now. Mr. Obie asked if the result would come back to the council. Mr. Smith stated that he would provide a status report. The City is contractually obligated to construction costs. It must be determined what is extra and what is not. Mr. Obie noted that the council would like to participate in that decision. Mr. Obie stated that in regard to the buy-backs of $1,448,000, the community does not expect to have a center without an acoustical shell. Mr. Lieuallen noted that there is no legal basis for argument with the architects regarding reduction of fees due to inflation. They are not required to respond to this. He said that the numbers can be arranged in many different ways, whether including or excluding the parking structure, but the total cost will remain the same--$24 million. .e MINUTES--Eugene City Council October 8, 1980 Page 8