Agenda Package - 10-1-12 Reg. Meeting

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issues. The first is the roof has two active leaks, which can be repaired. The estimate of the cost to repair is part of the attached reports. The Community College has offered to split this cost 50 -50 with the County. In addition, due to age, the roof inspector felt the entire roof would need to be replaced in the next 2 to 5 years. The estimate to do this is also attached. Secondly, the plaster ceilings cracked under heat expansion when the A/C was cut off. On the first floor, the only issue found was extensive mold due to a leaking sink in one of the un- occupied offices. This mold will need to be remediated before occupancy. The estimated cost to remediate is attached. It is the belief of staff that Dr. Howard should be responsible for this expense. The County intends to move County Administration, Legal, Human Resources, GIS and Finance to the 408 Summit Drive location. The area that we vacate in the Government Center will be turned over to the Health Department and DSS for badly needed space. The Health Department will probably move WIC down to the area that HR occupies right now, freeing up valuable clinical space on the second floor for the department. The Summit Building was inspected and two issues were uncovered. The foundation of the building has settled causing the building to also settle. The roof needs to be reworked to take this settling into account so that rain water will flow off the building. The cost to rework the roof is in the attached report. This is a natural occurrence for a building of this age. Also due to the settling, the front area of the building will need to be re- graded so that rain water will go away from the front door. This work can be done by County staff. The annual payments to Dr. Howard and his wife will be $151,458.36 a year. Currently, there are five leases in the Steele Street property. Dr. Howard currently receives $40,000 per year for these leases. The leases on Steele Street run for another two years. The loss in annual tax revenue to the County for these two properties will be $3,837. The tax value of the two properties equals $511,620. By moving GIS to the building, we eliminate $15,000 in rent payments annually to the City of Sanford. We will also be relocating this department to a building that has adequate parking and is easy to access. Based on a November 1, 2012 closing date, the operating costs for FY 2013 are estimated to be $108,807. Those costs will be covered by the rental income from the Steele Street leases and the saving from the COPS refunding that was completed in May 2012. To move into the Building, the County will have to buy furniture and invest in some IT infrastructure. There are 25 offices in the building, and we will occupy 19 with employees. We will also occupy 3 of the rooms as conference rooms. There are several areas that we can use for storage and file cabinets. We estimate the total cost of the move to be $75,563 - $48,000 for furniture and equipment, $15,000 for IT infrastructure, $7,500 for legal fees, and $5,063 for roof repairs. Lisa and I are proposing to use part of the savings from the COPS refunding, attorney funds in the FY 12 -13 budget and funds remaining in the San Lee Dam Project to pay these one -time costs. In the second year the savings from the COPS refunding and the rental income on the Steele Street property will cover the annual operating costs. After year two, we will have to revisit the leases and determine how they will impact the equation going forward. We also have the opportunity for additional rental revenue from the small business incubator, but we do not want to count on that revenue to justify the project.