To: Sonoma County Board of Supervisors
Department or Agency Name(s): Public Infrastructure
Staff Name and Phone Number: Johannes J. Hoevertsz, 707-565-2550
Vote Requirement: 4/5th
Supervisorial District(s): Fifth
Title:
Title
Additional funding - Guerneville Bank of America Building Improvements
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Recommended Action:
Recommended action
Adopt a resolution authorizing a budget adjustment to the Final FY 2023-24 Capital Projects Budget in the amount of $201,430 from available fund balance in closed capital project funds in order to fully fund required building improvements at the County’s recently acquired former Bank of America Building located at 16390 Main Street, in Guerneville. (4/5th Vote Required) (Fifth District)
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Executive Summary:
On October 25, 2022, your Board approved acquisition of the “Bank of America” building in Guerneville to serve as a County satellite service center. As part of the acquisition process County staff performed a Property Condition Assessment (PCA). The PCA identified several building deficiencies requiring attention including:
1. Reroofing the building
2. Installation of four (4) new HVAC units
3. Installation of a fire alarm system
4. Installation of two (2) ADA compliant door operators on this building.
Cost estimates were identified in the October 2022 Board item, however due to construction costs escalation and the need for work scope not initially contemplated, Sonoma County Public Infrastructure (SPI) staff is requesting reallocation of funding from closed capital projects in order to complete all repairs identified prior to acquisition. Funding that will be transferred represents prior-year General Fund allocations to capital projects, and is eligible for use on this project.
Discussion:
The Guerneville former Bank of America building consists of a single story, 7,784 square foot office building and parking lot with over 30 parking spaces. The County acquired the property in October 2022 to provide a County satellite service center, as requested by District 5.
County Health Services (DHS) and Probation Departments currently lease space in the building, and Bank of America has a lease for its auto-teller machine and equipment room at the location. DHS also collaborates with other local social service providers, including West County Community Services, Russian River Counselors, River to Coast Child Care Services, Face to Face and West County Health Services from this location.
While performing due diligence investigations prior to acquisition of the building County staff identified several significant maintenance/capital improvements necessary for the County to continue providing services at this location long term. The repairs, listed in the original estimate and the associated cost include:
1. Reroofing the building - $118,062
2. Installation of four (4) new HVAC units - $82,141.00
3. Installation of a fire alarm system - $37,403
4. Installation of two (2) ADA compliant door operators on this building - $13,000.
The original estimate for each of the items listed above is included in the attached Appendix B - “Cost Table” of the Property Condition Report entitled “Bank of America Building Property Condition Assessment” prepared by AECOM dated September 29, 2022.
These improvements, which amounted to $250,606 were intended to be funded from funds saved from the purchase price reduction of $275,000. However, current market pricing and prevailing wage requirements are such that costs of improvements now exceed the estimates provided at the time of the property purchase. Further, the original estimates and fund allocations at the time of acquisition did not account for or include architectural and engineering fees for professional drawings required by the California Building Code (CBC) required to secure the building permit needed for the roof construction.
The attached updated cost estimate prepared by PI staff accounts for design services, permitting, PI staff time, and construction. A 10% contingency in the amount of $29,227 is added to the updated construction cost of each item listed below. Costs associated with staff time and along with permitting fees are estimated at $57,870, which is 18% of the total construction cost, in addition, to consulting engineering services estimated at $82,106. The total cost of the proposed improvements listed below amount to $461,474.
1. Reroofing the building - $125,741
2. Installation of four (4) new HVAC units - $80,340
3. Installation of a fire alarm system - $70,000
4. Installation of two (2) ADA compliant door operators on this building - $16,190.
To fully fund required building repairs, SPI staff is recommending reallocation of $201,430 from three closed capital projects:
• $61,825 from the Mount St. Helena - Telecom Site project (40805600) approved in FY 2021-22. Funding for this project was approved by the Board on December 7, 2021, utilizing $125,000 FY 2021-22 General Fund Contingencies to provide telecommunications coverage in eastern Sonoma County for first responders. However, that project was no longer needed as an equipment solution was made using other existing facilities and on October 18, 2022, the Board authorized use of $62,280 of the available funds to close out the Inmate Connector project. As a result, a remaining balance is available for use. The Board may elect to move these funds to the General Fund or support staff’s recommendation to approve use of $61,825 to fund the building repairs.
• $106,893 from the Information Systems Department (ISD) Data Center Power Improvement project (40104300). Since the new dedicated generator is installed for the ISD Data Center, ISD is no longer needed to install the second redundant emergency generator. Therefore, this project is no longer needed, and we proposed to re-allocate the funding.
• $32,712 from the JJC roof cap metal and gutter replacement project (40501800). Funding for this project was approved as part of the FY22/23 new capital project General funded allocation. However, the scope of this project was reduced from replacing flashing and wall caps to aesthetic painting. It is now anticipated that the roof will need full replacement and maintenance has advised to keep roof traffic to a minimum.
These projects had prior funding approved but are now closed with remaining balances. The funding to be reallocated originated from prior year General Fund allocations to capital projects, and can be utilized on this project. A budgetary resolution is attached outlining these recommended changes.
Strategic Plan:
This item directly supports the County’s Five-year Strategic Plan and is aligned with the following pillar, goal, and objective.
Pillar: Resilient Infrastructure
Goal: Goal 1: Invest in County buildings and technology to enhance service delivery and improve employee mobility
Objective: Objective 4: Establish resilient neighborhood/regional and satellite service centers with access to transportation systems in West County, Cloverdale, and Sonoma Valley, as expressed in the Real Estate Master Plan, by 2023 in order to improve equitable pub
Racial Equity:
Was this item identified as an opportunity to apply the Racial Equity Toolkit?
No
Prior Board Actions:
10/25/22: Release of contingency and Acquisition of real property at 16390 Main Street, Guerneville. Adopted a Budget Resolution approving adjustments to the FY 22-23 Capital Project Budget in the amount of $2,981,834 from Deferred Maintenance.
07/12/22: Approval of contingent property purchase agreement for acquisition of real property at 16390 Main Street, Guerneville Adopted a Budget Resolution approving adjustments to the FY 22-23 Budget in the amount of $123,537 from Deferred Maintenance for the due diligence costs and earnest deposit.
Fiscal Summary
|
Expenditures |
FY 23-24 Adopted |
FY24-25 Projected |
FY 25-26 Projected |
|
Budgeted Expenses |
$260,044 |
|
|
|
Additional Appropriation Requested |
$201,430 |
|
|
|
Total Expenditures |
$461,474 |
|
|
|
Funding Sources |
|
|
|
|
General Fund/WA GF - Capital Fund/Closed Projects |
$201,430 |
|
|
|
State/Federal |
|
|
|
|
Fees/Other - Deferred Maintenance Fund |
$260,044 |
|
|
|
Use of Fund Balance |
|
|
|
|
Contingencies |
|
|
|
|
Total Sources |
$461,474 |
|
|
Narrative Explanation of Fiscal Impacts:
Funding for the additional improvements is being request from available General Fund from closed capital projects in the amounts of $61,825 from Mount St. Helena (dept.ID 40805600) approved by the Board on December 7, 2021 and $106,893 from the Information Systems Department (ISD) Data Center Power Improvement project (dept. ID 40104300) approved in FY18/19 adopted Capital budget, and $32,712 from the JJC roof cap replacement project (dept. ID 40501800) approved in FY22/23 adopted Capital budget. Funds of $201,430 will be allocated to Guerneville Bank of America capital project department ID 40805700. A budgetary resolution is attached outlining these recommended changes.
Narrative Explanation of Staffing Impacts (If Required):
N/A
Attachments:
1-Budget Resolution
2-Property Condition Report - Bank of America Building Property Condition Assessment prepared by AECOM dated September 29, 2022
3-Updated Cost Estimate dated 9/13/2023
Related Items “On File” with the Clerk of the Board:
N/A