REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
June 23, 2026
FROM
MOE YOUSIF, Interim Director, Project and Facilities Management Department
SUBJECT
Title
Budget Adjustment, Escrow Agreement with Dalke & Sons Construction, Inc., and Contract with Utter Associates dba ZTransform LLC for the Multimedia Services Studio Remodel Project
End
RECOMMENDATIONS
Recommendation
1. Approve a budget increase in the amount of $879,848, to Capital Improvement Program for the Multimedia Services Studio Remodel Project No. 24-111, increasing the total project budget to reflect updated cost estimates, from $3,320,152 to $4,200,000.
2. Approve Escrow Agreement with Dalke & Sons Construction, Inc., allowing for deposit of progress payment retention in an escrow account in lieu of County held retention for the Multimedia Services Studio Remodel Project.
3. Award Non-Competitive Contract to Utter Associates dba ZTransform, LLC , to provide the integration of the studio production systems for the Multimedia Services Studio Remodel Project in San Bernardino, in the amount of $986,325, for a contract term of June 23, 2026 through November 23, 2026.
4. Authorize the Director of the Project and Facilities Management Department to accept the work when 100% complete and execute and file the Notice of Completion.
5. Authorize the Auditor-Controller/Treasurer/Tax Collector to post necessary budget adjustments, as detailed in the Financial Impact section (Four votes required).
(Presenter: Moe Yousif, Interim Director, 387-5000)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Promote and Fulfill the Countywide Vision.
Operate in a Fiscally Responsible and Business-Like Manner.
Foster Sustainable Development Through Strategic Partnerships.
FINANCIAL IMPACT
Approval of this item will result in the use of additional Discretionary General Funding (Net County Cost). The recommended budget increase of $879,848 to the Multimedia Services Studio Remodel Project (Project) (WBSE 10.10.1587) will be funded with Discretionary General Funding, increasing the total project budget from $3,320,152 to $4,200,000. This will allow for the procurement and integration of audiovisual equipment, lighting systems, and related studio infrastructure.
The Project was originally funded with $4,200,000 in Discretionary General Funding as approved by the Board of Supervisors on February 6, 2024 (Item No. 20), however, the Project budget was subsequently reduced. The recommended budget increase restores the project budget to the originally approved funding level. The recommended contract award to Utter Associates dba ZTransform, LLC (ZTransform), in the amount of $986,325, will be fully funded within the revised total project budget of $4,200,000.
The recommended budget adjustments for 2025-26 are necessary to increase the Project:
|
Fund Center |
Commitment Item |
Description |
Action |
Amount |
WBSE |
|
1280001000 |
56006000 |
Appropriation Contingencies |
Decrease |
$879,848 |
- |
|
1161161000 |
55305030 |
Operating Transfers Out |
Increase |
$879,848 |
- |
|
7700003100 |
54304030 |
Structures and Improvements to Structures |
Increase |
$879,848 |
10.10.1587 |
|
7700003100 |
40909975 |
Operating Transfers In |
Increase |
$879,848 |
10.10.1587 |
The Project’s budget of $4,200,000 is comprised of the following components:
|
Description |
Amount |
|
Project Design |
$560,000 |
|
Project Management, Inspection and Testing |
$534,776 |
|
Construction |
$1,854,480 |
|
Construction Contingency |
$264,419 |
|
Studio Audio Vision Equipment |
$986,325 |
|
Total |
$4,200,000 |
BACKGROUND INFORMATION
The Project overall scope of work is the remodel of the existing Multimedia Studio room to provide enhancements to the studio layout, and existing studio audio visual equipment which includes demolition and remodeling 3,161 square feet of existing space. This Project will also address some required accessibility modifications to the first-floor restrooms.
On September 4, 2025, pursuant to County Policy 11-15, the Assistant Executive Officer (AEO), determined the Project to be categorically exempt under Section 15301, Class 1(a) of the California Environmental Quality Act (CEQA) Guidelines (Title 14, California Code of Regulations). No further environmental review is required at this time.
On September 4, 2025, the Administrative Office authorized Project and Facilities Management Department (PFMD) to advertise the Multimedia Services Studio Remodel Project. Following a competitive solicitation process, including two mandatory job walks attended by 22 contractors, the Board approved the construction contract with Dalke & Sons Construction, Inc. on March 10, 2026 (Item No. 25). This contract will provide the specialized studio furniture, lighting, and audio-visual equipment necessary to complete the studio remodel and support multimedia production operations.
Approval of this item will award a non-competitive contract for studio audio vision equipment to ZTransform and will authorize the execution of an escrow agreement with Dalke & Sons Construction, Inc, for the Project.
ZTransform is recommended for non-competitive procurement for the integration of the studio set, audiovisual, and lighting systems for the Project due to its unique role in developing the Project’s Basis of Design (BOD). As a consultant to the Design Professional of Record (DPOR), the firm worked closely with the End-User to define technical requirements, system integration, and performance criteria aligned with operational needs. This direct involvement provides unmatched familiarity with the Project’s design intent and constraints. Engaging another vendor would require redesigning and re-coordinating, resulting in added costs, delays, and potential compatibility risks. Procuring this firm ensures continuity, preserves design integrity, and supports efficient project delivery while avoiding duplication of effort.
Dalke & Sons Construction, Inc. has requested that retention payments required to be withheld, be deposited into an escrow account. Retention payments represent five percent of each monthly progress payment withheld until project completion. This withholding serves as a financial safeguard to ensure the contractor fully and properly completes the entire scope of work as specified in the Contract. Public Contract Code section 22300 mandates that public agencies permit this form of payment retention. Approval of the recommendation will authorize the Project and Facilities Management Department to complete the escrow agreement with Dalke & Sons Construction, Inc. This escrow agreement will remain in effect for the duration of the Project and a minimum of 35 days following the acceptance of the Project as 100% complete.
This Project is consistent with the County Administrative Office approved CIP request No. 24-111.
PROCUREMENT
Due to the project's specialized audiovisual, broadcast studio, and lighting requirements, the Design Professional of Record (DPOR) selected ZTransform to develop the Basis of Design (BOD) based on their qualifications and expertise in integrated studio production systems.
As the consultant responsible for developing the BOD, ZTransform established the technical requirements and system integration approach incorporated into the construction documents. Given their familiarity with the design intent and project systems, the County contacted ZTransform on April 10, 2026, to obtain a cost proposal for integrating the studio set, audiovisual, and lighting systems.
The Purchasing Department supports the non-competitive procurement of technical furniture/studio set, lighting and audiovisual equipment from ZTransform based on their specialized credentials, expertise, and training. The vendor originally developed the design plans and specifications for this Project and possesses the specialized knowledge required to integrate the studio set, audiovisual, and lighting systems in accordance with those specifications. Utilizing an alternative vendor would require the development of new design and engineering plans, resulting in additional costs and project delays to the County. ZTransform’s familiarity with the Project requirements ensures accurate implementation, continuity, and efficient completion of the installation.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Daniel Pasek, Deputy County Counsel, 387-5455) on May 5, 2026; County Communications (Martha Guzman-Hurtado, Chief Communications Officer, 818-8988) on June 1, 2026; Purchasing (Ariel Gill, Supervising Buyer, 387-2070) on June 1, 2026; Auditor-Controller/Treasurer/Tax Collector (Charlene Huang, Auditor-Controller Manager, 382-7022) on June 2, 2026; Project and Facilities Management (Sarah Riley, Chief of Project Management, 387-5115) on June 2, 2026; and County Finance and Administration (Erika Rodarte, Administrative Analyst, 387-4919, and Yael Verduzco, Principal Administrative Analyst, 387-5285) on June 4, 2026.
(KC: 387-5000)