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Board previewed architect fee reduction and CMAR cost‑savings incentive for new elementary project
Summary
Staff reported an agreed architect fee reduced from a 6.75% cap to 6.5% with counsel's help, and district counsel previewed a CMAR shared‑savings incentive (50/50 split up to $100,000 contingency) for the new elementary project; board asked staff to gather member views before formal contract approval Dec. 15.
District staff and counsel briefed the board on two construction items tied to the planned new elementary: a negotiated architect fee and a proposed contractor incentive in the CMAR contract.
Architect fee: Superintendent Swan said counsel Chad Donahue (Campbell Shatley) assisted negotiations to lower the architect maximum fee from 6.75% to 6.5% of certain contract sums; the district intends to place the architect fee/contract on the Dec. 15 action agenda. "He did some research within surrounding counties that are doing building projects right now, so we are able to save several $100,000 by getting a 6.5 as opposed to the 6.75," Swan said.
CMAR incentive preview: District counsel and donor/contract counsel (Mr. Donahue) described an optional shared cost‑savings clause used in other districts: the CMAR would share 50% of contingency savings up to $100,000 (so the contractor could receive up to $50,000 of the saved contingency), intended to incentivize vigilant cost management while limiting perverse incentives to cut corners. Counsel said liquidated damages for late completion would remain in the contract and the savings split would be modest to avoid unsafe incentives. Board members asked staff to consider pros and cons and said they would discuss individually before the Dec. 15 vote.
Next steps: The architect fee and CMAR contract language will be finalized with counsel and presented to the board for action at the Dec. 15 meeting.
