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The 50% increase in your fees (excluding expenses) places you at the <br />extreme high end of the cost estimates submitted by responders to the <br />RFP. While the credentials and experience of your team, placed you near <br />the top of our ranlfings, your fee was not an issue because it was <br />competitive and reasonable. The high fee may have changed your ranking <br />if this information was known at the time the proposals were evaluated. <br />The county and transit were experiencing budget overruns at the time you <br />were hired. We publicly stated that the transition from Mr. Berrey to <br />MMDC would save us about $500,000. If the news media adds Mr. <br />Berrey's settlement ($360,000) ta your proposed fee, we will now pay <br />rnore than if we had not terminated Mr. Beney. I do not believe our <br />respective Board's can justify these type expenses, even if the quality of <br />your services exceed those provided by Mr. Berrey. <br />These concerns are not intended to preclude final negotiations on your contract <br />and compensation. However, I want you to understand the political and <br />economic situation we face if we agreed to a significant increase in your fee. The <br />newspaper continues to do research on Mr. Berrey's role and compensation. We <br />were not in budget when we terminated his services and we are not in budget <br />today. As Commissioner Franke said last June in your office regarding an article <br />on the Statesman Journal editorial page, "I do not want to make the losers column <br />again on this project." The issues I have cited in this letter have the possibility of <br />again embarrassing the county and transit district as scheduling delays and higher <br />costs are encountered. <br />C: Mike Hansen <br />R.G. Andersen-Wyckoff <br />Commissioner Franke <br />mmdcfee.wpd <br />