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Budget Committee, was prepared and distributed to both groups. Leonard Lodder will attend the CAC briefing to provide an update on the project status to date, design status, and what still needs to be done. Randy Curtis noted the political group needs to be aware there are decisions still to be made when they take office. One is the disposition of the Franklin Building. 4. Housing Authority and Solid Waste Space Purchase Billy Wasson provided the following update. Marion County Solid Waste - In response to an e-mail inquiry to Scott Clements asking for his, or Ed Einowski's, assistance to assess the options in terms of how they impact the County's bonding of the major debt. He does not believe it is in the County's best interest to create a separate partner for the 5,000 square foot space. Using the internal policy procedure it is possible for a department to pre-pay their rent by putting money up front. The issue would be neutral for bonding purposes. Marion County Housing Authority - Marion County Housing Authority has submitted a prospectus prepared by Seattle First, an underwriter, to purchase their space. Scott Clements does not advise having them be a legal partner in the project. If further discussion or guidance is needed it can be sought in the future. Billy Wasson said he supports allowing Marion Co. Solid Waste to put their money up front since it diminishes the debt. In response to a question about how long the rent is pre-paid Randy Curtis said they would pre-pay the debt service portion of their space. Their rent would be assessed to cover operating costs. The issue is can the debt service be pre-paid up front without the interest, causing the County to borrow less and is it a win-win for both parties. Billy Wasson noted the space cost may almost be paid for when the contract is issued based on the amount of funding already borrowed by the County from Solid Waste. Billy Wasson noted there is a need to have an estimated charge for the space. Mike Hansen asked if the $1.30 square foot cost includes anything other than debt service and operating. Randy Curtis noted moving Solid Waste to the fifth floor increases the cost because it is premium space with their requested tenant improvements. Randy Curtis noted adding the Housing Authority as a partner means they have to be prepared to accept pro-rated costs for budget changes. What happens if they need more space in the future - do they buy it? What if their space needs decrease? Billy Wasson noted the inter-governmental agreement between Marion County and Salem Area Transit is almost wrapped up. Everything will have to be re-done if another partner is added, all for 5,000 square feet of space. 5. Development Team Report Craig Lewis reported the team went through the space plan floor by floor. The number of individual offices in the County portion dramatically decreased, as well as other drags on the budget. A few cost saving features have been added and a lot of the fat has been trimmed. The revised space plan should be received in about a week. Once design development is complete the estimators can be prepared to make sure the next budget run is precise and the assumptions are accurate. R.G. Andersen-Wyckoff asked if the estimator can provide the cost on the project and leave the contingency to the partners. Craig Lewis said he created a work sheet to carve out the contingency. The next run will include asking them to show the amount of contingency included. Craig Lewis said the team may want to look at the escalator and contingency costs to see how they