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ARDEN HILLS CITY COUNCIL - OCTOBER 13,1998 12 . which has been increased to 15,000 square feet. This initial fee of$99,800, also assumed a construction budget of$1,120,000. This fee did not include furnishing design. The budget for the furnishings had originally been set at $300,000 but with the refinement ofthe project the cost will be closer to $150,000 or less. Mr. Fritsinger advised that Staffrecommends the Council adjust the design fee for architectural services to $162,500, and direct the City Administrator to prepare and execute the necessary amendments to the contract with Architectural Alliance. Staff further recommends the Council approve Architectural Alliance as tile provider of furnishings design services for the new City Hall, and direct Staff to amend the current agreement with the Alliance to provide these services at a cost not to exceed 55,000 for Phase I, and 15% ofthe budget for Phase II design work. Councilmember Malone asked how they managed to get $300,000 out of the constmction budget. Mr. Fritsinger stated the direction given the designers is that Staff wants the project to be at approximately this dollar amount. Mayor Probst stated he, COUl1cilmember Aplikowski, and Mr. Fritsinger met with Mr. Vesterholt of Architectural Alliance and identified that they could propose some modifications to what was included in the previous estimate. Mr. Vesterholt indicated they are comfortable they can complete the project within the established range. Councilmember Larson noted that, with a project such as this one which increases in value, he . would assume, within the architectural service business, the fee added on for the additional square footage would be lees than the original fee. He acknowledged they did come down three tenths of one percentage and asked if this is standard. Mayor Probst indicated the initial proposal for the fees was well above this. He has had conversations with Mr. Vesterholt regarding the direction of where the fees will go and the nunlbers are reasonable. Councilmember Aplikowski noted she was concerned at first that the cost was too high. Upon reviewing the changes, although she is still concerned the total amount is too high, she recognizes that all increase would be appropriate. MOTION: Councilmember Aplikowski moved and Councilmember Keim seconded a motion to adj ust the design fee for architectural services to $162,500, and direct the City Administrator to prepare and execute the necessary amendments to the contract with Architectural Alliance; to approve Architectural Alliance as the provider of furnishings design services for the new City Hall; and direct Staff to amend the current agreement with the Architectural Alliance to provide these services at a cost not to exceed $5,000 for Phase I, and 15% of the budget for Phase II design work. The motion carried unanimously (5-0). ADMINISTRATIVE COMMENTS Mr. Fritsinger asked Mr. Brown to give the Council an update on the status ofthe 1998 street . improvements. Mr. Brown stated all that is left to do is the wear course on the three streets. Fairview Avenue is being sodded and should be complete today. The other two trails are ready to be paved and this work should start tomorrow. All driveways are complete but there is still some clean up work to be done.