Special Notice / Hearing: None__
Vote Required: 4/5ths
To: Honorable Board of Supervisors
From: Michael P. Callagy, County Manager
Subject: Recognizing Unanticipated Revenue from the Human Services Agency to the Accumulated Capital Outlay Fund for the Agency's cost share of County Office Building 3
RECOMMENDATION:
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Approve an Appropriation Transfer Request (ATR) recognizing unanticipated revenue in the amount of $45,000,000 from the Human Services Agency to the Accumulated Capital Outlay Fund as a lump-sum payment for the Agency's cost share of County Office Building 3.
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BACKGROUND:
In February 2020, the County Manager and the County's Director of the Human Services Agency (HSA) memorialized the financial arrangements concerning HSA's occupation and utilization of space in County Office Building 3 (COB3) following the completion of COB3 in or about Fall 2021. Those arrangements were set forth in an intra-county Memorandum of Understanding which set forth the terms of HSA's use of COB3 including a one-time payment by HSA in the amount of $45,000,000 which was to be effectuated through an appropriation transfer request.
DISCUSSION:
HSA is anticipated to occupy 45,853 of the 153,645 square feet in COB3 (i.e., approximately 29.8%). Additionally, as of February 2020, COB3's construction costs were approved at $152,000,000.
Based on those figures, payment in full for HSA's space in COB3 was determined to be $45,000,000 (rounded), i.e., ~29.8% of the $152,000,000 in estimated construction costs. The $45,000,000 constituted payment in full for 45,853 square feet of space in COB3 whether the actual construction costs of COB3 are ultimately less than, or exceed, $152,000,000, and whether the actual total square footage of COB3 is ultimately less than or greater than the 153,645 square feet planned as of February 2020. As a result of this one-time payment, HSA will not pay any debt service in connection with the lease revenue bond financing, ...
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