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interest of the City in terms of the actual dollar <br />amounts. <br />Jim Hillhouse responded to Luce's questions as to <br />whether construction management fees were included <br />in the percentage figures or would be a cost that <br />has not been identified and "tacked on" at some <br />later date. Cony;truction management fees are <br />provided by the €;eneral contractor acting as a <br />construction manager. The fees quoted are <br />strictly architectural fees. The fees estimated <br />by Hillhouse ands Associates in any of the <br />alternatives listed do include either a a <br />construction management fee or a general <br />contractor's fee. Hillhouse feels very certain <br />about the estimates; given as being on target with <br />actual costs to be incurred for this project. <br />Luce seconded Resolution #8, Series 1985, be <br />adopted and the motion was passed unanimously. <br />APPROVE CITY SHOPS <br />CONSTRUCTION AND <br />RECOMMEND FINANCING Hundley related to Council that Asti-Caranci had <br />solicited bids for the financing of this project. <br />Three bids were received and staff recommends <br />going with the low bidder for the lease. purchase <br />for a 3 year program with Security Pacific. Staff <br />recommends that Council authorize: 1) to proceed <br />with construction, 2) to go out for bids, 3) to <br />proceed with construction documents through <br />Hillhouse at either a 7~ total project cost or an <br />8~ maximum based on time and materials; and, 4) <br />finance the project over 3 years with Security <br />Pacific in a lease purchase agreement using Option <br />1 and applying $170,000 in City funds. <br />Mayor Meier moved that Council approve the <br />construction of the City Shops using Option 1, <br />finance through Security Pacific and authorize <br />staff to negotiate with Hillhouse and Associates <br />regarding the 7~ total project cost or an 8I <br />maximum based on time and materials. Luce <br />seconded. <br />Luce commented that in voting for this measure it <br />is his hopes that it be conveyed that time is a <br />critical element. If time were not the issue, the <br />City might choose to finance it in a different way <br />or seek other options. As time is the paramount <br />factor in Luce's estimation, he hopes that the <br />various parties that the City contracts with will <br />be sensitive to this issue. <br />6 <br />