8B1 CONTINUED FROM 11/3/2015

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1 8B1 CONTINUED FROM 11/3/2015 BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY PLACEMENT: DEPARTMENTAL PRESET: TITLE: CONSIDERATION OF A COMMERCIAL CONTRACT FROM MARTIN MEMORIAL MEDICAL CENTER, INC. (MMC) FOR THE SALE OF THE FORMER EMERGENCY OPERATIONS CENTER (EOC) LOCATED BETWEEN SE TOWER DRIVE AND WILLOUGHBY BOULEVARD AGENDA ITEM DATES: MEETING DATE: 11/24/2015 COMPLETED DATE: 11/12/2015 COUNTY ATTORNEY: 11/2/2015 ASSISTANT COUNTY ADMINISTRATOR: 11/9/2015 REQUESTED BY: DEPARTMENT: PREPARED BY: Name: Don Donaldson, P.E. Engineering Dept. Director Name: Procedures: None EXECUTIVE SUMMARY: Engineering Jeffrey Dougherty, Real Property Manager Request consideration of a Commercial Contract to sell the former EOC facility to MMC and the adoption of a resolution as required by Section Florida Statutes. APPROVAL: LEG ACA CA BACKGROUND/RELATED STRATEGIC GOAL: 80711ff5 1 of 26

2 1. Contract prepared by: Crary Buchanan, PA. Contract review by: Martin County Resolution prepared by: Martin County 2. Parties to the Contract: MMC - Buyer Martin County - Seller 3. Purpose: Disposition of County property 4. New/Renewal/Modified: New 5. Duration: Perpetual 6. Benefits to Martin County: Convert an underperforming asset into liquid capital. Offer: $675, Cost to Martin County: To be provided via Supplemental Memorandum. In 1976 Martin County purchased 10 acres of land in south Stuart from the Martin County Cable Company, Inc. (B0408/P732). In 1979 the EOC facility was constructed on approximately 2 acres of the site adjacent to SE Tower Drive. A communications tower was erected in 1998 and in 2002/2003 a portion of Willoughby Boulevard, with supporting stormwater management ponds, were built on the property. In 2006 the County constructed a new EOC adjacent to the Sheriff s facility off of Monterey Road and relocated the functions within the former EOC facility. Since that time, the former EOC on SE Tower Drive has remained partially vacant and underutilized. Over the years County staff has explored ways to more efficiently utilize the facility. In April 2014 the Board of County Commissioners (BCC) expressed a desire to pursue the sale of the former EOC property. Staff recommended changing the General Institutional Land Use and the Public Service Zoning to more valuable designations which would appeal to a wider range of potential purchasers. In July 2015 the BCC approved the change of the Land Use to Commercial, Office, Residential (COR) and the Zoning to Commercial Office (CO). In March 2015, the BCC and MMC entered into a Letter of Interest to allow the parties to negotiate a joint project to convert the facility to a data center that would benefit both the County and MMC. During these negotiations, the County engaged CBRE to review the proposed rental values. CBRE gave favorable recommendations for the proposed joint use facility and alternatively recommended sale of the facility. The negotiations between the County and MMC for a joint use facility were not successful. The County received an unsolicited offer from MMC on October 12, 2015, to purchase the former EOC on SE Tower Drive for $1.5 Million. This offer was subsequently withdrawn because it was based upon a contractual term that the Land Use and Zoning on the property be designated as Limited Commercial. On November 5, 2015, the County received a new offer from MMC to purchase the property for $675,000. The contract offer contains various terms and conditions which staff is in the process of reviewing and analyzing ff5 2 of 26

3 Staff estimates for the relocation costs and options for the relocation will be provided by Supplemental Memorandum. ISSUES: Relocation and timing associated with relocation of the existing functions within the former EOC including: Master Radio System and Staff Backup Dispatch Police System Supervisor of Elections backup elections equipment Microfiche/Microfilm storage Fiber Optic Network Patch Panel The balance of the property acquired in 1976 which would not be transferred to MMC needs to be designated as County right-of-way to accommodate the Willoughby Boulevard improvements and the existing communications tower. The sale of the property is an unsolicited transaction with a not for profit which requires that the County adopt a resolution in accordance with Section Florida Statutes. LEGAL SUFFICIENCY REVIEW: This item has been reviewed for legal sufficiency to determine if it is consistent with applicable law, has identified and addressed legal risks, and has developed strategies for legal defensibility. RECOMMENDED ACTION: RECOMMENDATION a. Move that the Board designate Parcel A of Exhibit A, as prepared by the Martin County Surveyor and dated , as Right-of-Way; b. Move that the Board provide staff with direction regarding the relocation of the existing uses of the old EOC and consider the offer for purchase. ALTERNATIVE RECOMMENDATIONS Provide staff with direction. FISCAL IMPACT: RECOMMENDATION To be provided via Supplemental Memorandum ff5 3 of 26

4 Funding Source County Funds Non-County Funds Authorization Subtotal Project Total ALTERNATIVE RECOMMENDATIONS None DOCUMENT(S) REQUIRING ACTION: Budget Transfer / Amendment Chair Letter 1 Contract / Agreement Grant / Application Notice Ordinance 1 Resolution Other: ROUTING: _ ADM _ BLD _ CDD _ COM _ ENG _ FRD _ GMD _ GSD _ ITS _ LIB _ MCA _ MPO _ PRD _ USD X CA X ACA X LEG 80711ff5 4 of 26

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6 BCC MEETING DATE: November 24, 2015 AGENDA ITEM: 8B1 TO: VIA: FROM: MARTIN COUNTY, FLORIDA SUPPLEMENTAL MEMORANDUM Honorable Members of the Board DATE: November 19, 2015 of County Commissioners Taryn Kryzda County Administrator Kevin Kryzda, Chief Information Office Harold Markey, General Services Director REF: 80711ff5 SUBJECT: CONSIDERATION OF A COMMERCIAL CONTRACT FROM MARTIN MEMORIAL MEDICAL CENTER, INC. (MMC) FOR THE SALE OF THE FORMER EMERGENCY OPERATIONS CENTER (EOC) LOCATED BETWEEN SE TOWER DRIVE AND WILLOUGHBY BOULEVARD This item is for the Board to consider an offer from MMC for the sale of the former EOC located on Parcel B between SE Tower Drive and Willoughby Blvd. The property itself comprises approximately 5.01 Acres of land containing one concrete reinforced building (Bunker) with approximately 6,000 square feet of interior space, a triple wide trailer housing Radio System staff and several other smaller, ancillary structures. This Supplemental Memorandum is intended to provide additional information on relocation of the existing uses on the property. Master Radio System: The Bunker (a hardened, reinforced concrete building) houses what is known as the Master Radio System. Basically, this system is comprised of a number of electronic components that are directly associated with a 350 tower that is located on Parcel A. These components reside within two closed rooms totaling approximately 400 square feet of floor space. Together, the tower and the Master Radio System components are the core, or principal components, of the Public Safety Radio System used throughout the County. The offer from MMC grants the County up to 3 years from closing to vacate this use of the Bunker. With the previously approved upgrade of the Public Safety Radio System, the components of the Master Radio System are to be moved into a shelter (a concrete building) within the footprint of the tower, on Parcel A, which will become County right-of-way. The current project plan has a proposed start date of the first quarter of 2016 with a duration of approximately months. The costs for this relocation are part of the Public Safety Radio System upgrade. If the Public Safety Radio System upgrade project is started as planned, there will be no additional cost of relocation and relocation of these components will be completed within the time allowed by the MMC offer. Page 1 of 5 its2016m3 SUPPLEMENTAL.docx 6 of 26

7 BCC MEETING DATE: November 24, 2015 AGENDA ITEM: 8B1 Radio System Staff: There are currently 3 staff persons that occupy offices in a triple wide trailer. The trailer also contains storage for spare parts for the radio system, bathrooms, system files and a conference room used for equipment staging and for a meeting held every month with the Radio Advisory Group. The Radio Advisory Group is comprised of member of each of the agencies that are served and supported by the Radio System staff; including the Sheriff, Stuart Police Chief, Stuart Fire Chief, Town of Jupiter Island Police Chief, Town of Jupiter Island Emergency staff, School Board Operations Manager, County Radio System Manager and County Chief Information Officer. Attached to this trailer is a covered work area that is designed for the Radio System staff to work on, and service, all the vehicles that have Pubic Safety Radios installed in them. These include Patrol Vehicles, School Buses, Ambulances, Fire Trucks and other such equipment. In addition, there is a steel half container (10 x 20 ) for storage of large equipment that is used on, or around, any of the 4 towers throughout the County used by the Public Safety Radio system. Altogether the Radio System staff needs occupy approximately 2,300 square feet of office space and 750 square feet of covered workspace, totaling approximately 3,000 square feet, including sanitary facilities. The offer from MMC grants the County up to one year to accomplish this relocation. Staff estimates that moving the trailers and the ancillary appurtenances to a new site will cost $100,000. Alternatively, the Radio System staff could be relocated to an existing County facility. One such facility might be the former Jensen Beach Fire Station 10 which is estimated to need $200,000 in renovations for this purpose which could be accomplished within the year provided by the offer from MMC. This option for relocation would still require removal of the trailer from the property, estimated to cost $60,000, which could be repurposed or sold. Backup Dispatch System: The Bunker also houses the Backup Dispatch System. The Primary Dispatch System is housed at the Public Safety Complex on Monterey Road. The Backup System is comprised of equipment that is directly connected to the Public Safety Radio System and up to eight staff workstations for emergency dispatch staff (Law Enforcement, Fire and Emergency Medical Services) to work.the former EOC is also being used for training Sheriff s Office new Dispatchers and has the capability of simultaneous usage with the Primary Dispatch Center for large events. In total this System occupies approximately 800 square feet and is the planned go to space if the Primary Dispatch Center is compromised. Staff has spoken with the City of Stuart about relocating this Backup Dispatch System within the City of Stuart s EOC as one option. The City s EOC has the same equipment that the County uses and can readily be configured to support the County s backup needs. It is estimated that the cost for relocating the existing Backup Dispatch System would be $200,000. This relocation could be accomplished within three months. The Sheriff has requested that a relocation to the City s EOC only be temporary. However, if the system is later moved to a permanent location there would be an additional cost of $200,000 to move it again and the cost to provide a facility suitable for this function. Staff has obtained estimates for a modular, Page 2 of 5 its2016m3 SUPPLEMENTAL.docx 7 of 26

8 BCC MEETING DATE: November 24, 2015 AGENDA ITEM: 8B1 reinforced concrete building, such as was used for Traffic Operations, in the neighborhood of $350,000-$550,000. Supervisor of Elections Backup Elections Equipment: The Supervisor of Elections currently stores backup voting equipment within approximately 600 square feet of locked and air conditioned space inside the Bunker. Staff has spoken with the Supervisor of Elections about the requirements for storing this equipment. She advised that she needs the equipment to be stored in an air conditioned space that can be locked and secured and is not opposed to working with the County to find a mutually acceptable location to relocate this equipment. One option to house this equipment, even temporarily, could be the former library in Jensen Beach. That facility currently houses the Clerk of the Town of Ocean Breeze and was the site of the Jensen Beach Chamber. It has ample space to house and secure the equipment. Another option to house this equipment might be to collocate in the former Jensen Beach Fire Station 10, if it is renovated to accommodate the Radio System staff. Moving costs for this equipment are minimal as it could be accomplished by County staff. This relocation could occur within one month, even if only to a temporary location. Microfiche/Microfilm Storage: The Bunker also houses microfilm and microfiche records in approximately 150 square feet. The only requirement for storing these records is that they be in a locked, air conditioned space. As a temporary measure, these records could be relocated to unoccupied office space within one of the existing County office buildings. Another option to house this microfilm might be to collocate in the former Jensen Beach Fire Station 10, if it is renovated to accommodate the Radio System staff. The cost to relocate these records is minimal as it could be accomplished by County staff. This relocation could occur within one month, even if only to a temporary location. Fiber Optic Network Patch Panel: The Bunker currently houses a patch panel where much of the County s fiber optic cables are terminated. Essentially, several routes of fiber optic cable enter the building. These cables can then be interconnected to create redundant routes, as is now being done, for disaster management and resiliency. These cables would need to be pulled out of the Bunker and relocated outside of Parcel B. The estimated cost to relocate the fiber to a location off the property, such as into the adjacent right-of-way or the shelter to be constructed under the tower on Parcel A, is estimated between $50,000 and $100,000; depending on the final location of the relocated fiber and the permitting process. It is estimated that this activity can be accomplished within three months. Total: The total minimum estimated cost to relocate all of the existing uses on the property is $475,000. Page 3 of 5 its2016m3 SUPPLEMENTAL.docx 8 of 26

9 BCC MEETING DATE: November 24, 2015 AGENDA ITEM: 8B1 Background: Staff has advocated the use of the subject parcel as the site for a permanent Data Center for the County s own use. This Data Center would house all the computing equipment currently housed in the County Administration Building. This equipment currently supports all of the departments of the Board as well as the Property Appraiser and the Supervisor of Elections and also partially serves the Sheriff, the City of Stuart, the Town of Sewall s Point and the Town of Jupiter Island. This equipment presently comprises the primary computing resources for those agencies. Though this location has served as the de facto primary Data Center for the County, it happened organically over a time when computing was not at the heart of everything that the County does and is not adequate to serve as a Data Center. When the former EOC was vacated, more than 10 years ago, staff requested, and the Board agreed, that it could be repurposed as the County s Primary Data Center and the newly constructed Public Safety Complex would be the Backup Data Center. Staff was well under way to doing this when the economy receded in 2008 and the capital to refit the Bunker to its planned use has not been available since then. The Administration Building has reached its maximum capacity to supply the computing equipment with sufficient power and cooling resources and it is critical that a suitable facility be fitted in order to fulfill the County s needs for an adequate, protected, and redundant Data Center. Late in 2014, staff worked on estimates to remodel the Bunker using more modern Data Center designs. These newer designs require less expensive building renovations and less extensive facility modifications. The cost for the modern Data Center remodeling was for $1,450,000 in November of Staff has confirmed with the vendor of the Data Center equipment that the pricing offered in 2014 is still valid. The Public Safety Complex is being updated with the same type of modern Data Center design which, when completed in the Spring of 2016, will make that facility the Sheriff s Primary Data Center and it will remain the County s Backup Data Center. Staff has determined that some renovations to the Bunker are required if the County retains ownership, including a new roof, new air conditioning (for the facility, not specifically for the Data Center space) and bathroom remodeling; collectively estimated to cost $250,000. Analysis: Estimated costs to relocate the various functions previously described and currently housed on the subject property are close to the offered price. If the offer is to be accepted, then the County would need to relocate the various functions and identify a new site suitable to locate and construct a Primary Data Center. Many of these estimated costs may have unforeseen circumstances that could drive the estimated costs higher. The margin of net proceeds from a sale of the property does not appear to yield sufficient capital for the County to find a new site for a Primary Data Center and move all the existing functions to new locations. Page 4 of 5 its2016m3 SUPPLEMENTAL.docx 9 of 26

10 BCC MEETING DATE: November 24, 2015 AGENDA ITEM: 8B1 RECOMMENDED ACTION: RECOMMENDATION a. Move that the Board designate Parcel A of Exhibit A, as prepared by the Martin County Surveyor and dated , as Right-of-Way; b. Move that the Board not accept the offer from Martin Memorial Center; c. Move that the Board withdraw its interest in soliciting further competitive proposals via Request for Proposals; and d. Move that the Board allocate funding to remodel the former EOC to make it fit for use as the County s Primary Data Center. ALTERNATIVE RECOMMENDATIONS a. Move that the Board designate Parcel A of Exhibit A, as prepared by the Martin County Surveyor and dated , as Right-of-Way; b. Move that the Board accept the offer from MMC to purchase the former EOC; c. Move that the Board provide staff with direction regarding the relocation of the existing uses of the old EOC. d. Provide staff with direction. RECOMMENDATION Funding Source County Funds Non-County Funds General Fund $1,450,000* F.A.R.B. 250,000* Authorization Subtotal Project Total $1,700,000* These are estimates ALTERNATIVE RECOMMENDATIONS Funding Source County Funds Non-County Funds General Fund $475,000* Authorization Subtotal $475,000* Project Total $475,000* These are estimates Reviewed by County Attorney s Office Page 5 of 5 its2016m3 SUPPLEMENTAL.docx10 of 26

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