Laserfiche WebLink
' <br />, <br />, <br />' <br />' <br />' <br />Did the County and Transit District misuse public funds by agreeing to a settlement with <br />Mr. Berrey? <br />No. In July 1996, the Marion County Commissioners authorized negotiating a contract <br />with Berrey and an interim agreement was executed by Marion County on July 31, 1996. <br />Berrey was paid nothing under that agreement, pending development of a final contract when the <br />scope of the project was finalized and defined. <br />On March 6, 1997, an agreement was executed with Berrey which allowed him to be <br />compensated $60,000 for expenses incurred on behalf of the project with the condition that the <br />amount would be credited against the ultimate proj ect management contract. <br />In April 1997, R.G. Andersen-Wyckoff and Randy Curtis were informed by the attorneys <br />' <br />' <br />' <br />' <br />'J <br />' <br />' <br />, <br />' <br />' <br />' <br />' <br />that the 5% management fee proposed by Berrey was more than market pazameters for the <br />services then anticipated (financing for the project had been restructured to lower Marion <br />County's interest expense ... please see "Was the original project privately or publicly <br />financed?") to be performed by Berrey on behalf of the project. The diminished financial risk to <br />Berrey as the developer under the revised financing proposed for the project no longer warranted <br />the 5% management fee. <br />Andersen-Wyckoff reported this issue to his entire board in April 1997 in a memo to the <br />Board of Directors clarifying the concerns of the County and the District over the compensation <br />issue. On May 29, 1997, after several unsuccessful negotiating sessions with Beney and his <br />attorney, Marion County, Salem Area Transit District and Berrey entered mediation to settle his <br />claim against the project. <br />A settlement which included compensation for project services provided at market rate <br />including supervision of the architectural and engineering work, contracting and supervision of <br />environmental consulting and testing, supervision of the bids for demolition and abatement, and <br />preparation of the project budgets and financial analysis, release of architectural work product; <br />and release of any further claims against the project (no litigation) was reached. The entire <br />amount was $360,000 with the previous payment of $60,000 credited to the amount. Berrey's <br />original fee request on a$30-million (hard costs) project was $1.5 million. <br />(Support information: Tabs 18-21) <br />, <br />