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<br />DLR Group inc. <br />a Washington corporation <br />51 University Street, Suite 600 <br />Seattle, WA 98101 <br /> <br /> <br /> <br />March 3, 2026 <br /> <br /> <br />Stewart Potter <br />Bayley Construction <br />8005 SE 28th Street <br />Mercer Island, WA 98040 <br /> <br />Re: Project Name: Everett Outdoor Event Center <br />DLR Group Project No.: 73-25119-00 <br /> <br />Dear Stewart: <br /> <br />We have refined and expanded our fee proposal that was provided in February and May based on the <br />programming, budget estimates, and design advancements for the Everett Outdoor Event Center. This revised <br />Phase 1B fee proposal is based on the Cost of the Phase 2 Work of $47,000,000. Please note that most of the <br />estimated fees for each scope of work is a percentage derived from the construction budget above. If the <br />Guaranteed Maximum Price (GMP) is approved at a higher budget or additional funding is procured, we will <br />request an Additional Service for the deviation to accompany the project of higher scope. <br /> <br />It is our understanding this Phase 1B fee proposal will be included in your proposal to the City of Everett for <br />review by the City Council in first quarter of 2026. We anticipate authorization to proceed following that meeting <br />for a Phase 1B kickoff with all necessary stakeholders with the intent to advance design based on scope in the <br />Phase 1A deliverable. If this schedule is modified, there may be a requirement for additional services for follow <br />up work requested to achieve a notice to proceed. When this proposal is accepted, we will be invoicing for the <br />work completed that is above and beyond the stipend provided. <br /> <br />This is a list of modifications that were made to the proposal for your review. This narrative can assist in <br />evaluating a line-by-line review as necessary. <br /> <br />1. The consultant proposals are attached to this memo to confirm fees. <br />2. Basic services fee percentage has been revised to 6 .15% of the MACC. This was accomplished for <br />three reasons: <br />a. Architectural / Interiors / Project Management was reviewed based on the timeline set for <br />design to provide the construction schedule required. Fees for these disciplines reduced to <br />4.37% in lieu of the originally proposed 5.05%. The fee is now more appropriately aligned <br />with the current design progress and added scope and alternates. <br />b. Civil Basic Services in the WA State Fee Schedule is a portion of the civil design that <br />includes the typical items that every building rega rdless of complexity would require such <br />as connection to utilities, general grading, etc. This is equal to 20% of the total civil design <br />fee. This has been revised and reduced the basic services. <br />c. The Advanced Civil Design Services equaling 80% of the fee is moved below the line. With <br />what we have learned about the site, the configuration, likely soil and underground <br />Progressive Design-Build Contract for Everett Outdoor Event Center <br />Exhibit to Amendment No. 1 - Phase 1B Work and Fee Proposal