Development Team Meeting Notes (96-99)

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including financing costs. The big component will be construction cost. If we can get ~ a conservative number for gmp, we can manage that. We can do what Alan was talking about to some degree, present a higher level of confidence with more bids on certain pieces. Curt's ideal budget would $25 million from general contractor's position. Alan would want to go to $27.5 million with a 5% allowance, but would try and come in at the $25 million. If it would come in over $25 million from the dd level to bid process, then would treat it similaz to change orders. Mark added if the owners risk is satisfactorily managed, we have answer for the market. Some variant will work with a high confidence level, outside number for construction costs and resources identified sufficient to cover. Discussions came back to the ti's role in developing a good gmp. County needs to decide on the type of ti's we want and go from there. If we deviate from this plan, the costs will go up. If the architect can have offices, open office space, work areas designated, it would take 30 - 60 days to come up with design. County and Transit will commit to providing this information. Pence Kelly would like reflected ceiling plan and they could use one lobby plan as a scale to determine soft pricing. The architect would have a staff person able to work with County and transit next week to talk space utilization. It is our goal to give the best numbers that we can provide for the project. Conversation went back to moving start date to September 1, allowing Pence Kelly additional time to be closer on their numbers for gmp. It was determined that even with ~ a September 1 start date, it is reasonable to complete the project within the 18-19 months construction timeframe, but still allowing some flexibility if necessary for the end of construction. The question was asked what is gmp? Curt replied that it is a guaranteed maximum price and not going over that price. Working with the approach outlined if we fund at the lower level with Alan's proposal, if the County sells $25 million in bonds, but we need $27 million in the end, it doesn't mean the contingency is not there. Curt had concern about the possibility of potential litigation involved if someone didn't bid the right costs. If I throw out a gmp of $25 million, what am I guaranteeing if bids go up. There are certain elements of work we need to look at: one is code and 2nd market conditions. The key would be for Curt to take dd drawings and get as much information as possible, and a11ow a 4 or 7% contingency. The documents go through completion. Issues get resolved along the way when they are talked about. When Curt does this and bonds are sold for $25 million, you aze probably looking at 10% cushion to be developed and justified like the change order process. Pence Kelly was asked if they could live with this. The gmp can remain with Pence Kelly and then the County canies contingency for any unknowns. We can't carry for mazket conditions. The September date gives us more comfort to obtain a refined allowance for ti's. What's the process and timing to narrow the code egposure? Both Curt and Alan ~ said that this is subject to interpretation. Changes could be made. Discussions 4