Hi David
You mention that the Stream text is just part of the site's theme but you also say that you want a new logo to match it. Seems a bit odd to design a logo based on a default template, but I can certainly do that for you if you'd like.
A better idea would be to develop a logo, then develop your site around it. Just a thought.
£85 for 8 concepts is unrealistic. As Craig mentions, you won't find many people on Design Forums (or indeed anywhere else reputable) that will do it that cheap and, more important, to a high standard. £85 for 8 concepts might sound great, but they'll probably be crap concepts, which is why the price is £85 and not the £300-£400 myself or Craig might charge for fewer concepts, but better ideas.
If all you want is the MCG logo to look more a bit bluer and a bit shinier to match the new site's template, then this would cost a lot less than £300. I'm happy to do this for the £85 that you've been quoted elsewhere or less if you already have the original MCG Illustrator file to work with.
You can find examples of my identity work here:
Identity | The Work of Neil Martin In most cases, my clients have also asked for the identity to then work with a range of stationery or website design, as I said above. A good example being Spira Creative:
Spira Creative | The Work of Neil Martin
How's that for free advice!
Do get in touch if you'd like to work together. Drop me an email: neil AT theworkof.co.uk and we can sort a budget out together.