Financial- Invoices Misc. (1 - 2 Files)

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Potential reduction in County Services: The current projections from the County show approximately a$328,000 initial negative annual impact on the present County budget, depending upon several variables, most importantly the target lease rate county agencies are expected to pay. This impact does not take into account any additional debt service for more parking. The County may ultimately determine that the necessary budget shortfall in the neaz term is too great and that the County's future benefits may not justify the loss of services in the immediate future. This analysis is beyond the purview of the Task Force. Mazimum guaranteed price (MGP): The Task Force questioned the viability of requiring a maximum guaranteed price. If a construction manager is employed, savings through a time and materials format could be substantial. MGP bidding forces subcontractors to "pad" their bids to account for unforseen construction problems. This method can create higher conshuction costs, with no commensurate increase in value. In addition, we believe that fee agreements with the project consultant should be tied to the financial outcome~of the project. Otherwise, it would appear that the project consultant would bear no risk if the project runs over budget or over time. Political Feasibility of Courthouse Square The Task Force believes the Courthouse Square project could go forwazd in the current political environment but not without considerable cost of public goodwill and confidence in governmental decision makers. Further loss of public confidence in government will not only affect Marion County and the Transit District but also the City of Salem, the School District, the Community College and Polk County. It is imperative that County officials take aggressive action to restore public confidence and a sense of public ownership if they elect to proceed with the project. While the Courthouse Square project has merits, it is not worth sacrificing the future needs of this community. Quite simply, the County and the Transit District cannot afford any more blunders with this project. Consequently, the Task Force believes the County and the Transit District must implement the following steps if they choose to proceed: 1. The County must commit resources to address the pazking shortfalls discussed in this report. 2. Because of the current attention and public perception relating to Courthouse Square, the leadership team should be carefully reviewed. A change of leadership would likely contribute to improved public acceptance of the project's current scope. 3. All aspects of the design, management, construction and mazketing of the project should be competitively bid at the appropriate times. 3