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Streetscape Funding The Committee discussed the City of Salem, Urban Renewal Fund contribution of up to $2 million for streetscape costs. The $1.6 million streetscape are hard costs. The $1.6 million estimate does not include all costs, especially past expense for streetscape. Budget Estimate Discussion Jerry Vessello noted the total hard cost contingency is 12.5 %. He also noted he used A.C.C. one time and found their estimates conservative. David Cameron asked if the current design is different from the previous design to account for the budget estimate change. R.G. Andersen-Wyckoff noted the design has not changed from the original cost estimates. Billy Wasson noted it is the same square footage, same number of parking spaces, and the same project, only the level of detail has improved Maynard Hammer asked how value engineering plays into the new design and estimates? He also noted the tenant improvements on the second floor are $5-$7 lower than other floors. Leonard Lodder noted the change in open floor space design compared to individual offices is one item that has driven down the cost. Individual offices are more expensive to build than open floor space with partitions. R.G. Andersen-Wyckoff responded to the value engineering question. He noted a peer review was conducted by Tri-Met and Lane Transit District. Weekly review of the designs produced discussions on segments and the costs came down as changes were made. Craig Lewis noted tenant improvements came down several hundred thousand dollars when enclosed offices were changed to open floor space. Jerry Vessello said he attended the gas versus electric HVAC system discussion and is satisfied with the choice to use a gas/electric combination with reheat on each floor. The gas boiler room caused a reduction in the number of parking spaces and he is aware of the communities need for downtown parking. PGE Transformer Billy Wasson said his discussion with PGE provides two options. The current design calls for an underground vault transformer in the right of way. PGE did not say we could not do it but there are restrictive conditions. The pay back is six years on a leased transformer from PGE. Maynard Hammer said he wants to make sure the transformer is up out of harms way if it is a flood zone. During the 1996 floods several state buildings were severely damaged because the transformer and power distribution equipment was in the basement. Leonard Lodder noted that is part of the reasoning by PGE. In order to put it above the ground the location would be prime retail space. Another option is to put it on the roof, but there is concern about changing it out in the future and getting a crane into the area to perform the service. This issue has not been resolved. Design Questions Maynard Hammer asked if the building is designed for the anticipated building load. Leonard Lodder said yes.