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Approve an Appropriation Transfer Request (ATR) of $615,000 from First 5 Solano’s Contingency Fund for tenant improvements at the Vallejo First 5 Center (4/5 vote required)
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Published Notice Required? Yes ___ No _X _
Public Hearing Required? Yes ___ No _X _
DEPARTMENTAL RECOMMENDATION:
First 5 Solano recommends the Board approve an Appropriation Transfer Request (ATR) of $615,000 from First 5 Solano’s Contingency Fund for tenant improvements at the Vallejo First 5 Center (4/5 vote required).
SUMMARY/DISCUSSION:
First 5 Solano is opening a First 5 Center in Vallejo, which will include approximately 9,000 square feet of space for a multitude of services for parents/caregivers, young children and First 5 Solano administrative offices. First 5 Solano has identified a location at 3375 Sonoma Blvd., secured a lease and secured a nonprofit agency to provide the services. In early August 2019, the City of Vallejo approved the plans for tenant improvements and the landlord’s contractor began construction. In addition, First 5 Solano is in the process of securing vendors for furniture, signage and other needed components.
The full cost of tenant improvements is currently estimated at $1.77 million. First 5 Solano has been seeking funding for tenant improvements and as of August 2019, has secured $1,155,000, including your Board’s support of $200,000 in General Fund in FY2018/19. First 5 Solano is actively pursuing funders to generate the remaining need for this project.
In August 2019, the First 5 Solano Commission agreed to allocate resources from Contingency to fund the current gap so as to not halt construction. In the event that funding is not secured from other funders, the Commission will be utilizing these funds to complete the tenant improvements. This ATR recognizes the revenue and expenditure associated with the Contingency funds.
FINANCIAL IMPACT:
The costs associated with preparing the agenda item are nominal and absorbed by the Department’s FY2019/20 Budget. The $615,000 was not included in the FY2019/20 Budget; therefore, an ATR must be approved by the Board to access the funds from contingency.
ALTERNATIVES:
The Board could elect to not approve the ATR in the amount of $615,000 from First 5 Solano’s Contingency for tenant improvements; however, this is not recommended as tenant improvements are needed to make the space functional for services for young children.
OTHER AGENCY INVOLVEMENT:
There was no other agency involvement in this item.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION