REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
January 9, 2024
FROM
TERRY W. THOMPSON, Director, Real Estate Services Department
SUBJECT
Title
Budget Increase to Capital Improvement Program for Acquisition of Improved Property for Office Space in San Bernardino
End
RECOMMENDATION(S)
Recommendation
1. Approve a $50,000 increase to Capital Improvement Program Project No. 24-090 for the acquisition of approximately 0.82 acres of improved property located at 451 East Vanderbilt Way in San Bernardino (Assessor’s Parcel Number 0281-372-05), increasing the total estimated acquisition cost from $26,853,100 to $26,903,100, due to an increase in the due diligence inspection costs.
2. Authorize the Auditor-Controller/Treasurer/Tax Collector to post adjustments to the Real Estate Services Department 2023-24 budget in the amount of $50,000, to increase the acquisition budget for Capital Improvement Program Project No. 24-090, as indicated in the Financial Impact section (Four votes required).
(Presenter: Terry W. Thompson, Director, 387-5000)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Improve County Government Operations.
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of this item will result in the use of Discretionary General Funding (Net County Cost) of $50,000. The requested $50,000 increase to Capital Improvement Program (CIP) Project No. 24-090 (WBSE 94.10.0004) for the acquisition of approximately 0.82 acres of improved property located at 451 East Vanderbilt Way in San Bernardino [Assessor’s Parcel Number (APN) 0281-372-05] (Property) is due to additional due diligence inspection costs. This cost increase will be funded by the Building Acquisition Reserve. The Real Estate Services Department (RESD) is requesting the Auditor-Controller/Treasurer/Tax Collector to post the following adjustments to the 2023-24 budget totaling $50,000:
|
Fund Center |
Commitment Item |
Description |
Action |
Amount |
WBSE |
|
1000 |
37008767 |
Fund Balance Assigned - Building Acquisition Reserve |
Decrease |
$50,000 |
- |
|
1161161000 |
55305030 |
Operating Transfers Out |
Increase |
$50,000 |
- |
|
7700003105 |
40909975 |
Operating Transfers In |
Increase |
$50,000 |
94.10.0004 |
|
7700003105 |
54304030 |
Structures & Improvements to Structures |
Increase |
$50,000 |
94.10.0004 |
BACKGROUND INFORMATION
An increase to CIP Project No. 24-090 and budget adjustments are requested in the amount of $50,000 for additional due diligence inspection costs, consisting of increased cost of building inspections and additional environmental inspections.
On October 3, 2023 (Item No. 46), the Board of Supervisors (Board) authorized the acquisition of the Property, which is improved with an office building, totaling approximately 115,520 square feet, and approved CIP Project No. 24-090 for a total estimated acquisition cost of $26,853,100, which included an estimated $98,000 for due diligence inspections. The acquisition of the Property is subject to the County’s completion of its due diligence activities and the close of escrow.
The Project and Facilities Management Department (PFMD) obtained initial proposals from consulting professionals and inspection services from on-call consultants to perform the necessary due diligence inspections, studies, and reports to determine the condition of the architectural, mechanical, electrical, plumbing, and structural components of the building. On October 24, 2023, the due diligence inspections commenced, and it was determined that the initial estimated cost would be insufficient to cover the actual cost of the inspections, studies, and reports. The additional cost of the due diligence inspections, studies, and reports for the building is $14,507.
Additionally, the RESD realized that the Phase I Environmental Site Assessment did not include vapor sampling as part of the environmental due diligence for the Property. The added cost for the vapor sampling is $14,400. Additional funds of $21,093 have been included in this request to account for projected County labor costs.
On October 3, 2023 (Item No. 46), the Board made a finding that the acquisition of the Property is an exempt project under the California Environmental Quality Act Guidelines, Section 15301 - Existing Facilities (Class 1) and directed the Clerk of the Board to file and post a Notice of Exemption. Therefore, no further action is required under CEQA.
PROCUREMENT
On October 3, 2023 (Item No. 46), the Board authorized the acquisition pursuant to Government Code section 25350 and Section 6063. The Board also approved CIP Project No. 24-090 for a total estimated acquisition cost of $26,853,100.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Agnes Cheng, Deputy County Counsel, and Julie Surber, Principal Assistant County Counsel, 387-5455) on December 6, 2023; Purchasing (Ariel Gill, Supervising Buyer, 387-2070) on December 12, 2023; Auditor-Controller/Treasurer/Tax Collector (Charlene Huang, Auditor-Controller Manager, 382-7022) on November 21, 2023; Finance (Yael Verduzco, Principal Administrative Analyst, 387-5285) on December 19, 2023; and County Finance and Administration (Valerie Clay, Deputy Executive Officer, 387-5423) on December 19, 2023.
(NA: 501-6726)