Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Carolyn Bloede, Director, Office of Sustainability
Subject: Updated cost savings analysis for purchase of real property by the South Bayside Waste Management Authority
RECOMMENDATION:
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Accept this informational report in relation to Resolution No. 079850 for South Bayside Waste Management Authority (SBWMA) purchase of Real Property.
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BACKGROUND:
On August 1, 2023, staff recommended that the Board adopt Resolution #079850 to approve the South Bayside Waste Management Authority’s (SBWMA) purchase of real property located at 1245 San Carlos Avenue, Suite E, San Carlos, California for use as their administrative offices. The memo associated with this recommendation included a cost analysis provided by the SBWMA that showed a cost savings of 39 percent over 30 years ($2,166,098) if it were to purchase the property as opposed to lease it. The Board ultimately adopted the Resolution on August 1, 2023.
DISCUSSION:
After the Board’s adoption of the Resolution, the SBWMA informed County staff of revisions to the cost savings calculations, and that the cost savings for purchasing the property as opposed to leasing it was actually 25 percent ($1,416,098) rather than 39 percent ($2,166,098) as previously calculated, which is 14 percent less savings ($750,000) than originally calculated.
Given that the corrected cost savings still indicate that purchasing of the property will result in substantial savings over leasing it, the initial recommendation by staff remains unchanged. However, if the Board wishes to revisit its previous action, it may provide such direction to staff.
FISCAL IMPACT:
There is no fiscal impact associated with this informational report.
ATTACHMENTS:
• SBWMA Correction Letter