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Zone 7 Water Agency has purchased the administrative office building in Livermore that it currently occupies, a move officials say will save millions of dollars.
The agency paid $9 million for the building, located at 100 North Canyons Pkwy. Its existing 15-year lease, which was in its 13th year, was terminated at close of escrow at the end of April, according to Zone 7.
“Praise to the team of (Zone 7 engineering manager) Jarnail Chahal and Osborn (Solitei, assistant general manager) and others that put this together and pulled it off — it’s going to save us a bundle,” board of directors president Dick Quigley said at a recent meeting.
Zone 7 had been exploring the purchase of an administrative building since late last year, when consultants were brought on to research the agency’s options. They looked at the cost of buying the existing location now, purchasing and retrofitting another office building, constructing a new building at Zone 7’s Parkside Drive office site in Pleasanton, and buying land to construct a new facility.
They found that taking advantage of a purchase option in the lease now — rather than waiting for it to be available in 2020 at a cost of $12.2 million — would be the most cost-effective route.
The decision will result in savings of $3.8 million in additional lease payments, $500,000 in moving expenses and $2.8 million by avoiding future sinking fund contributions, according to water agency staff.
“We’re very very pleased … and the people of the valley should be very pleased, as well,” Zone 7 board member Angela Ramirez Holmes said.