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Board reviews SiteLogic fee, contingency and bond sizing after lower-than-expected bids
Summary
Staff told the board SiteLogic's fee (18.75% of the earlier project estimate) produces a high consultant fee relative to lower bid totals; the board discussed issuing bonds at roughly $10.06 million and a contingency of about $872,000.
After the board approved contractor awards, staff reviewed financing details and professional fees, saying SiteLogic's contract calls for an 18.75% fee calculated against an earlier project cost estimate. "SiteLogic would get 18.75 percent of the original project cost," the staff member said, citing 18.75% of $13,209,812 in their calculation.
Staff noted the bids came in significantly lower than the earlier estimate, which means the consultant fee calculation looks large relative to the actual bids. The board and staff discussed contingency sizing: staff cited an $872,000 contingency (described as roughly 15% for changeable items) and compared that to the 5% contingency mentioned in earlier cost estimates.
Staff told the board they had previously approved $13,675,000 at a June/July meeting but were considering issuing bonds at roughly $10.06 million — about $3 million less than previously approved — if SiteLogic and the district's financial advisor (Ehlers) confirm the approach. "This is just strictly FYI," the staff member said when sharing certain cost breakdowns; staff said they would seek written confirmation from SiteLogic that proceeding at the lower bond amount is acceptable.
Next steps identified by staff included working with Ehlers on bond calculations, obtaining written confirmation from SiteLogic, and finalizing builder's risk insurance and asbestos abatement contracting before significant work begins.
