Agenda - 01-15-2008-4y - Laserfiche WebLink

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REVISED 1/11/08 Abstract and Attachments The most notable modification clarifies that Section 4(2) of the Agreement. of Intent remains part of the parties' agreement after the Purchase Agreements are signed. Section 4(2) allows Telesis to request an adjustment to the guaranteed Project Cost in two limited situations: (1) if the County modifies the scope of work or (2) in the event the project is delayed by reasons beyond the control of the developer. While the Manager of Telesis, George Horton, indicates his desire and willingness to hold the original cost of $17,939,079, the project is essentially six months behind the original estimated schedule. The reasons why the original timeline has not been met are several, including, but not limited to: • An extended period needed by the County to program the office building in order to ensure the final product is suitable for the long-term use by the County departments; and • An extended period needed by the County and its library planning consultant to program the Library space; and • The time needed to obtain the necessary regulatory approvals. Telesis is endeavoring in good faith to accommodate this delay without seeking any adjustment but wishes to preserve its rights in the event its best efforts are not completely successful. Telesis is currently pre-qualifying contractors and preparing, with the County's collaboration, to solicit bids pursuant to the public bidding requirements of the Agreement of Intent and the Agreement for Construction Manager at Risk Services. Cost increases, if any, that result from this effort would be presented to the Board of Commissioners for approval as may be appropriate. FINANCIAL IMPACT: The cost of this project was included in the County and School Project Debt Issuance Schedule as presented in the fall 2006. The project is funded contingent upon underwriting approval, LGC approval and the project cost being in compliance with the County's Debt Policy. The Board is reminded that the construction cost of $17,939,079 as reflected in the Purchase Agreements for the office building and library include an upfit allowance of $33/square foot for the office building and $55/square foot for the Library. The County will be responsible for any costs for upfit and sustainable design elements that exceed these amounts. The upfit allowances have not changed from the June 2007 agreements approved by the Board. RECOMMENDATION (S): The Manager recommends that the Board approve the attached Resolution reflecting the modifications to the Agreement for Purchase and Sale of the Office Building and the Library and the Agreement for Construction Manager at Risk Services.