DEPT-3 was a public hearing for consideration and approval of a comprehensive agreement for a public-private partnership (P3) third required meeting.
This P-3 is for construction of a new Martin County Operations facility to consolidate multiple departments (public works, general services, parks and mosquito control) into a modern, centrally located facility that improves coordination, efficiency and long term facilities planning.
Public works and general services for many years have been located at Witham Field. For many decades these premises have been unsatisfactory and unsanitary. Currently, 110 full time employees work from that campus of substantial buildings. 160 full time employees will be based from there.
The county is also under obligations to the Federal Aviation Administration at Witham Field. The FAA approved voluntary Corrective Action Plan (VCAP) requires the county to remove certain non-aeronautical uses from the airport property, including the existing public works and general services operations.
P-3 arrangements have been successfully utilized in Martin County and all over Florida and the United States. This, however, is the first P-3 proposal Martin County local government has considered.
The conventional timetable for design/build construction is 36 months. P-3 projects timetable is 18 months, from contract signing to project completion. Conventional design/build contracts are subject to change orders, inflation, time table delays. In a P-3 project, the contractor bears all the risk. Regardless of inflationary costs, the contracted price cannot change. No change orders. No switching to cheaper materials. See below for more information on the benefits of using the P3 process.
Staff carefully evaluated the cost per square foot for a traditional design/build. Total cost was $700.00 per square foot. This 118,000 square foot facility will be $533 per square foot.
Martin County has a very conservative debt service policy. Our debt service after approval of the project will be $4.5 million per year, the same amount we had pledged annually before this proposal. Because we have retired a significant portion of our indebtedness, our future debt obligation will remain at $4.5 million per year. And, it will be paid from our half cent sales tax. No ad valorem taxes will be used. The term of this bond will be 20 years, shaving $22 million off of a 30 year commitment period the total price is $74 million.
Department heads Gorton, Abbate, Merle, Donahue and Graham put their best efforts into thoroughly evaluating this proposal. They negotiated a fair and binding contract. I have full confidence in their recommendation of approval for the project.
Capps, Ciampi, Heard and Hetherington approved. Vargas opposed. |
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