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Item P10 Q/21 BOARD OF COUNTY COMMISSIONERS C ounty of M onroe Mayor David Rice, District 4 Mayor Pro Tem Craig Cates, District 1 The Florida Keys Michelle Coldiron, District 2 Vacant, District 3 Holly Merrill Raschein, District 5 County Commission Meeting April 20, 2022 Agenda Item Number: P.10 Agenda Item Summary #10453 BULK ITEM: No DEPARTMENT: County Attorney's Office TIME APPROXIMATE: STAFF CONTACT: Bob Shillinger (305) 292-3470 N/A AGENDA ITEM WORDING: Discussion and direction regarding an unsolicited "public private partnership" (P3) proposal submitted by Fortress Secured, LLC. to design, build, and finance a replacement fire station for Monroe County at the current location of the Sugarloaf Volunteer Fire Department's Station 10. ITEM BACKGROUND: The County just received an unsolicited proposal from Fortress Secured, , which submitted the proposal pursuant to F.S. 255.065, the Public-Private Partnership statute . Fortress proposes to design, build, and finance the construction of a replacement for Station 10, which is currently owned by the Sugarloaf Volunteer Fire Department, ). Given the size limitations of the location, Fortress proposes to build a 2-story, 3 bay fire station using one of its template plans as a starting point. The proposal is premised on the County acquiring ownership of the property from the Volunteers then Fortress demolishing the existing structure and building a new building at its expense. The ownership of the new building would be subject to discussion during negotiation of the comprehensive agreement that would follow should Fortress be selected. The proposal contemplates providing space for a stealth cell tower on the property that would be supported by equipment located in a portion of the new building designed to be segregated from the fire station. Fortress would recoup its investment through lease payments from the County and/or the cell tower company, to be negotiated. Fortress was founded by the principals of Summit Construction Management Group to specifically focus on P3 development, with an emphasis on public safety facilities. Members of Fortress leadership team have built fire stations in other jurisdictions. Under the P3 statute, the County has the option of reviewing the proposal and determining if it warrants further consideration or not. If the BOCC is interested in pursuing this proposal further, the law requires that this proposal be advertised twice locally in a newspaper of general circulation and in the Florida Administrative Register. The advertisement would essentially state that the County has received a proposal and will invite other entities to submit competing proposals for the same Qbdlfu!Qh/!3552 Q/21 project. The advertisement must run for a period of between 21 and 120 days after the initial date of publication. The Board would compare any competing proposals submitted by the deadline with proposal and then select the winning proposal. If the Board gives direction to move forward with the P3 process, the Board will need to determine how long to advertise for competing projects. The statute vests the Board with the discretion to set the specific length of the advertisement period within the 21-day to 120-day for County initiated projects is to advertise solicitations for a minimum of 45 days for projects valued at over $500,000. However, that policy does not expressly apply to unsolicited proposals, so the Board retains the discretion to vary from that policy so long as the chosen advertisement period falls within 21-day to 120-day timeframe set by law. If the Board follows its policy for advertising County initiated projects of this magnitude for 45 th days, the Board could consider the competing proposals as soon as the July 20 meeting in Marathon. If the proposal is advertised for 30 days, it would be possible for the Board to consider th competing proposals at its June 15 meeting in Key Largo, but that short time frame would limit competing proposals received. A 30 day advertisement period may also inhibit potential bidders from responding. Because the proposal contains certain information deemed trade secrets by the statute, particular aspects of the proposal are confidential and exempt at this stage of the process. Some of that information will lose that status and become available for public inspection should this proposal be selected; other information will remain confidential and exempt under the statute. was submitted at the request of Sugarloaf Wi--as part of an effort to resolve litigation between the County, the Volunteers, and Wi-Fi. That litigation consists of two civil lawsuits involving a cell tower lease between the Volunteers and Wi-Fi. In short, the Court voided the lease, but Wi-Fi still has pending claims for damages against the Volunteers based on representations of the Volunteers that allegedly induced Wi-Fi to enter into the lease. During the pendency of the litigation, the Volunteers advised the County that they no longer had the capacity to provide fire-fighting services and wanted to donate their station to the County so Monroe County Fire Rescue could continue to serve the Sugarloaf c board approved that transfer in 2019, the transfer has been delayed by pending litigation between Sugarloaf VFD and Wi-Fi as well as additional new litigation threated by Wi-Fi should the County accept the transfer of the Volunteers sole asset for less than fair market value. The County Attorney has advised against accepting the SVFD property while it is still subject to the existing litigation between the Volunteers and Wi-Fi because that would require the County to step tions in negotiating the subsequently voided lease with Wi-Fi, negotiations that the County did not participate in. The County Attorney estimates that the defense against the pending litigation as well as the additional claims threatened by Wi-Fi if the Volunteers were to transfer the property at a below market price would cost the taxpayers well into the six figures, even if the County prevailed. The parties have been engaging in settlement discussions during which the County Attorney encouraged Wi-Fi to submit a proposal such as this as Qbdlfu!Qh/!3553 Q/21 a way of resolving all of the pending and threatened litigation. Such a proposal could result in the construction of by using private capital, in a manner that would also meet the needs of Wi-Fi, all while observing the requirements of the statutes governing the leasing of County property. While this proposal is preliminary in nature, it appears to meet all of those goals. Consideration of this proposal is the first step in a multi-stepped process. The County will still have to advertise and select a winner if competing proposals are received. The statute requires that the County retain the services of a licensed architect or engineer to oversee the project unless those services can be handled in house by an appropriately credentialed staff member. A comprehensive agreement will still need to be negotiated between the County and the prevailing bidder. The parties to the litigation also need to negotiate a settlement agreement that resolves all remaining issues as well as potential future issues. PREVIOUS RELEVANT BOCC ACTION: On 7/19/2017 (Item N5), the BOCC authorized the County Attorney to file suit seeking to void the lease between the Sugarloaf Volunteer Fire Department and Sugarloaf Wi-Fi, Inc. due to violations of the Sunshine Law. CONTRACT/AGREEMENT CHANGES: N/A STAFF RECOMMENDATION: Direct staff to advertise proposal pursuant to F.S. 255.065 for a period of 45 days. DOCUMENTATION: Monroe Sugarloaf P3 Proposal Volume 1 Only P3 Attachments A and C FINANCIAL IMPACT: Effective Date: N/A Expiration Date: N/A Total Dollar Value of Contract: Total Cost to County: Current Year Portion: Budgeted: Source of Funds: CPI: Indirect Costs: Estimated Ongoing Costs Not Included in above dollar amounts: Revenue Producing: If yes, amount: Grant: County Match: Qbdlfu!Qh/!3554 Q/21 Insurance Required: Additional Details: REVIEWED BY: Bob Shillinger Completed 04/02/2022 1:05 PM Kevin Wilson Completed 04/04/2022 8:25 AM Zully Hemeyer Completed 04/04/2022 9:11 AM Steven Hudson Completed 04/04/2022 5:13 PM Joseph DiNovo Completed 04/05/2022 8:20 AM Bob Shillinger Completed 04/05/2022 3:53 PM Purchasing Completed 04/05/2022 3:56 PM Budget and Finance Completed 04/05/2022 4:02 PM Brian Bradley Completed 04/05/2022 4:06 PM Lindsey Ballard Completed 04/05/2022 4:15 PM Board of County Commissioners Pending 04/20/2022 9:00 AM Qbdlfu!Qh/!3555