Memphis/Shelby Co: County disclaims arena cost overruns (taxserfs shafted)

The Commercial Appeal ^ | 12/03/02 | Micheal Erskine

[GailA]

County disclaims arena cost overruns

$30,000 approved for laptop computers

By Michael Erskine erskine@gomemphis.com December 3, 2002

The County Commission on Monday passed a resolution disavowing responsibility for any cost overruns on the downtown arena project.

County Atty. Donnie Wilson said the resolution wouldn't absolve the county from any future liabilities, but commissioners passed it anyway.

Also Monday, the commission voted to amend the budget to appropriate $30,000 to buy laptop computers for commissioners, though some may pay for their own.

Commissioner John Willingham proposed the arena resolution, which declared that the commission "will not assume any funding responsibility for any cost overruns incurred during the construction." It passed 12-0 with Commissioner Linda Rendtorff passing.

Technically, they're not supposed to pay for cost overruns anyway.

The New Memphis Arena Public Building Authority's contract with lead contractor M.A. Mortenson Co. will hold Mortenson responsible for cost overruns above a guaranteed maximum price. That price has not yet been set.

Any cost overruns will be "something we're going to stand up and fight," said Chairman Walter Bailey. He said construction officials have "gotten notice" to stay on budget.

Also discussed Monday was the contract of John Hilkene, who is working as the project's chief consultant. A contract to pay Hilkene $39,000 a month to oversee the arena construction has not been executed, even though he's been working and getting paid.

At issue is whether Hilkene needs a general contractor's license.

The laptop issue was also heavily debated Monday. Everyone seemed to agree that using computers to do county business would be a progressive step. The issue of cost spurred the debate.

"The electronic age is here," said Bailey, who pushed heavily for the purchase.

Bailey and others argued that time, money and paper would be saved by using laptops. No study was done on anticipated savings.

Those opposed to the purchase, including Commissioner David Lillard, said laptops were just not a "spending priority," especially during the current budget crunch.

The matter passed 9-4. Voting for it were Marilyn Loeffel, Willingham, Julian Bolton, Deidre Malone, Michael Hooks, Cleo Kirk, Joe Ford, Tom Moss and Bailey. Voting "no" were Rendtorff, Joyce Avery, Lillard and Bruce Thompson. Loeffel, Rendtorff and Avery announced they would pay for their own.

- Michael Erskine:

529-5857

[GailA]

FYI

[SoDak]

hehehe...now, if they can only learn how to turn them on, the minesweeper battles will begin!