10-10-90 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL OCTOBER 10, 1990 construction manager fee. Fahey pointed out that when Boarman & Associates signed the contract it was no secret that the City was looking at using a construction manager. The City Administrator reported that the use of construction management was identified in the contract as an option. Scalze did not feel the City should pay a 7% fee on sales tax to the architect if the City finds it does not have to pay sales tax on the project. Kroos replied that sales tax is a contingency and potentially part of the cost of construction. Fahey stated that he has not seen the contract with the architect and would defer to the City Attorney's opinion on the matter. Fahey suggested that the City Administrator review the contract with the City Attorney and come back with a recommendation. Paul Mickelberg, Boarman & Associates, pointed out that the projects came back below budget, therefore, additional items were added to the projects. Had the projects not been below budget, the lower parking lot and retaining wall, for example, would have become alternates. Fahey pointed out that these items never became alternates and the 7% architect's fee was based on the initial budget amount. Scalze asked if the construction management fee and sales tax were initially considered cost of construction. Blesener replied that if the City went with a general contractor, those items would have been part of the bid. However, the City determined it could save money by going with construction management. Now the architect feels the City has changed the scope of the project. Kroos reported that the standard AIA contract says that architect are entitle to more fees if a firm goes with construction management. However, this clause was negotiated out of the contract. Kroos reported that Boarman & Associates would like to be compensated reasonably for their efforts. Page 11