Good afternoon, everybody.

Um welcome to the City Commission conference meeting uh this uh December 2nd, 2025.

Thank you all for being here today.

I know we got some exciting stuff to deal with today.

It's going to be a landmark and pivotal moment in our history to be able to hopefully at the end of the afternoon um the end of the afternoon session to be able to come up with a uh uh decision as to um how we're gonna move forward with the building of our new city hall.

So uh um it's gonna be a long day and uh I appreciate everyone's patience.

But before we get to that, there's some other business we need to take care of.

And uh so why don't we get through that and then we can move on to the uh the city hall presentations.

So CF1 annual investment report for fiscal year ended September 30th, 2025.

City manager.

Mayor, I think we were gonna do OPEM first.

I'm sorry, but to do OPEB first and then the I'm just reading from the from the Oh, we're gonna do that's a separate one.

Yeah, that was the separate.

Yeah, okay.

I believe that's all right.

Okay, so um we'll do the OPEC meeting.

All right.

All right, so switching course.

Mr.

Clerk, please call the roll.

Uh Vice Chair Herbs is on its way, Commissioner Glossman.

Here, Commissioner Beasley Pittman.

Here.

Commissioner Sorsen.

Here.

Chair Trentals.

Here.

BR 1.

Uh this is regarding other post employment benefits, trust annual investment report for fiscal year ending September 30th, 2025.

City Manager.

Mayor and Commission, this is the annual meeting of OPEB, of which you serve as the board.

We're here to report on the performance of our portfolio.

I'm going to turn it over to our finance director, Miss Linda Short.

Linda.

Good afternoon.

Mayor, Commissioners.

So positive news story, which I like to bring to you guys.

Um, the OPEP portfolio, both for the health and the PPS fund performed fairly well.

The benchmark that we have set for it is 7%, and they both earned over 10 percent, which means that it reduces our unfunded liability as well as provides enough funding for the benefits that are paid from it.

Wow.

Good question.

Any questions?

Who's your investment advisor?

This guy right here.

Well, actually, with this particular fund, several years ago when we first opened it up, you guys decide to use a passive investment strategy with it.

So basically set it in forget it, and it's been doing very well for us.

So we don't really have an advisor on the funds because they're all possibly invested.

Right.

Okay, great.

Any questions?

There being none, thank you so much.

No problem.

Moving on to M1 motion approving the minutes for the December 17th, 2024.

Other post-employment benefits trust board meeting.

Probably should have done that first.

But uh anyway, do I hear a motion to approve the minutes from last year?

Second.

Commissioner Sorensen.

Yes.

Vice Chair Herb's not present.

Commissioner Glossman.

Yes.

Commissioner Beasley Pittman?

Yes.

Chair Trental.

Yes.

That meeting is now concluded.

We now move on to the uh special meeting for this afternoon.

Anything else, Mr.

Clerk, before we do this?

No, we're good.

We're good.

Okay.

All right.

So now moving on to CF 1 annual investment report for fiscal year ended September 30th, 2025.

Linda.

Good afternoon, Honorable Mayor and Commissioners.

So another great news story to present to you guys.

I do have our financial our investment advisor from PFM here just to give you a brief market update.

But I want to report on how well we did overall as a city.

The actual investments in this particular pooled investment funds earned close to 35 million dollars last year.

Our budget for the investment pool was $8 million.

So we've earned well over what we anticipated earning.

So let me turn on you, Linda.

Let me tell you what that means in dollars and cents for us.

For instance, our general fund had a budget of 1.8 million.

We end up earning 5.8 million on that.

Our water and sewer fund had a budget of 1.9 million.

We earned 11.4 just in that fund alone, which gives an additional 9.5 million dollars to further future infrastructure or whatever we need.

Can we use that to pay down the debt on the water treatment plan?

If we if you so chose to, we absolutely could.

Yes.

So something to think about.

So it'll it'll reduce the amount of interest we pay over over time and and uh and perhaps even give the community an opportunity to have their their water rates uh either leveled out or reduced at some point in the that inform that these funds are in fiscal year 2025.

Right.

So they will fall back to fund balance, and you guys as a commission can determine how to best use that fund balance test there.

Do you have any idea what the fund balance is now in the water and sewer fund?

Not offhand.

No, not to be able to do that.

At some point if you could bring that information to us.

No problem.

Okay.

Yes.

All right.

But in the meantime, I'm just gonna let him just give a brief market update just to see whether or not we anticipate having the same favorable market we've been having for the past couple years in this upcoming year.

Okay.

Good afternoon.

Thank you, Commission.

Richard Pengelli with PFM Asset Management.

Um Lynn already gave the uh the the good news.

Um uh returns were good for the fiscal year uh driven by the fact that the Fed actually began lowering uh interest rates at the uh uh uh around September of last year uh in a falling rate environment that actually uh increases the market value of your existing bond, so that contributed and helped uh with the returns that uh that you saw in the portfolio.

Um the the downside uh from here though is that the Fed is forecasting to continue uh lowering interest rates.

In fact, we expect at their next uh meeting uh this month that they'll uh lower interest rates another quarter point uh with the goal of eventually lowering rates over the next year uh down to their uh what they think is the neutral target of around three three percent.

So um although earnings were good this year, um, you know, we are projecting that uh earnings will be a little bit lower uh for the next fiscal year.

What's the what's the Fed rate now?

Um so uh right now you're at uh three uh seventy-five um to four percent rate.

So you think they're gonna they're gonna lower it down to three percent by the end of the end of next year?

They're they're forecasting uh based on their last uh forecast that they would lower interest rates further and that their eventual target is three percent.

Whether they hit it at the end of next year, sometime in next year or the following year, is probably a little unclear, but but that's where they think they will stop uh in lowering interest rates.

Okay.

Anyone else have any questions?

Anything further?

Thank you so much.

We appreciate it.

Thank you.

Thank you.

Okay, now moving on to business one, the city hall update presentation of supplemental responses and evaluation findings from the shortlisted proposers.

Just to bring everyone up to date, um the city commission uh uh engage the communed the community approximately uh uh two years ago to uh to reach out to uh members of our community, our neighbors, to discuss uh what they would like to see in their city hall.

Um the reason why we had to undertake that uh that mission is because as a result of the April 2023 flood, our city hall was disabled, and the cost to repair it uh was not only prohibitive, but it would be time consuming.

I believe the last report that we received from um then public works director Alan Dodd was that it would take approximately two years and twenty million dollars before we would ever be able to move back in.

And that just was uh non-starter for the commission.

So uh faced with that challenge, we reached out to the community and we had an we had um uh a number of outreach uh events, uh reimagining City Hall, and we appreciate the work of the infrastructure task force that uh undertook that endeavor.

And there were a number of meetings throughout the city uh and we got quite a few comments.

In fact, it was all summarized in a report which which was presented to the city commission a number of months ago.

And today we are here to hear from the we're here to um listen to the various presenters that uh we we as the commission have asked for uh a final presentation.

We have four uh whittled down from a list of six, and today hopefully we're gonna whittle down to uh uh one and two.

I believe we said we wanted to pick one and then uh a backup, correct?

So um now I suppose there is no particular order that we could follow in doing this, but I my recommendation is we just follow the same alphabetical order that that we received the uh the presentation and and our backup and uh and if we do that we can just uh uh begin with Balfour Beatty.

So uh does anyone have any questions before we begin?

I thought we were going to be able to do that.

Yeah, we we will.

Okay.

Gotcha.

Yeah, but I'm just saying that's so we'll just start we'll start with them, but before we do that, um there is uh a number of things we want to go over, and we will start with uh city manager.

Thank you, Mayor and Commissioner.

Speak up a little bit because I'm hard of hearing.

Thank you, Mayor and Commissioners.

We appreciate uh your vision and guidance throughout this process.

As you mentioned, two and a half years ago, we experienced the flood of April 2023, and staff has been working diligently to get us to this point.

I want to highlight certain members of our team on staff who have been very pivotal uh with this project, including Assistant City Manager Ben Rogers, Assistant City Manager Yvette Matthews, Angela Salmon, our program manager in our real estate division, and Keith Pharrell in our budget office.

They have worked tirelessly to ensure that this process has been smooth and transparent.

We have had six public workshops.

We have had 10 commission agenda items and eight memorandums or letters to the commission offering insights into this process, which has been very open to the public, and we're proud of that record.

We consider that uh the P3 process has great opportunities for the city in terms of expediting delivery, and we know that all of the proposers, all six that initially submitted, uh, have done a lot of work to get to this point, especially the four shortlisted proposers, uh, who we will consider today.

So I do want to thank them as well.

We have Balfour Beattie, Fort Lauderdale Civic Partners, FTL Beacon Collaborative, and FTL City Hall Partners.

Thank you for all the work that you you've done to date and the work that at least one of you will do along with us as our partner.

Since we went along the path of an unsolicited proposal, staff has had the challenge of providing some guidance and a framework for making sure that we could evaluate and compare each of the proposals fairly and equitably.

We did ask proposers to submit information in response to our supplemental request for information package, and each of the four shortlisted firms did so timely.

Uh they also submitted an aggregate about 50 questions uh for clarification by the city, and we provided them with that information.

And at this point, you know, we tried to ensure that we had an apples to apples comparison for each of the four proposers.

However, uh, due to their creativity and their interpretation of the information items that we requested, uh we were not always able to get an apples to apples comparison.

So what you see before you in the report is an analysis and summary of the work uh that staff has done in collaboration with our consultants who have worked tirelessly as well.

We have Jacobs, our owners rep and PFM, our financial advisors, and they're here to provide some information uh based on their evaluation of the information submitted by each proposer.

The city attorney's office also did a lot of work in terms of looking at the litigation history for each team and each member of the team.

We have our city auditor who has done uh his review of the proposals, and so I just want to thank all the charter officers for their participation in this process as well.

And I think David Solomon is still working right now to make sure that the presentations will flow uh seamlessly uh for the rest of this meeting.

At this time, I want to turn it over to Ben Rogers, Assistant City Manager, to just briefly go over the evaluation process and what our consultants will share with us, and then the run-of-show for the rest of today's meeting.

Thank you.

Thank you, Manager Williams.

Ben Rogers, assistant uh city manager, uh good afternoon, Mayor, Commission, and everyone here today.

Uh as the manager said, we had a very collective uh effort and evaluation process.

Uh it was uh internally with city staff, uh, the departments that the manager recognized with the attorney's office doing litigation history, the auditor's office looking at potential deal structures, uh sequencing, and and what the future may hold for uh the uh agreement.

Uh the Jacobs uh was selected as the city's owner's representative over the summer.

They helped serve in the advisory role during the initial review that really led us to the shortlisted four, and during this process, they provided technical analysis, including the design verification, construction, constructability review, schedule sequencing, and cross-comparison cost breakdowns.

Uh they looked at the proposal qualifications, the facility experience, references, safety metrics, and also some litigation history as well.

Uh PFM uh did our independent financial modeling, the capital stack analysis, credit evaluation, affordability review, lifecycle cost analysis, uh, and overall financing modalities.

Uh they looked at the annual operating impacts uh and the availability payment implications, debt service obligations, uh, and validated the construction cost assumptions.

In addition to those two, we had uh a third uh consultant beacon advisory partners who helped support city staff and refining the documents, making sure that we caught all the things that the commission has requested over the process and made sure that they were uh transparent and forward-facing in our report.

Those three four uh entities uh really looked at the materials that were provided by each of the proposers, and as we put in the supplement supplemental information package, there was really three uh foundational areas we were looking at.

We're looking at financial structure and feasibility, where we wanted to know the clarity and defensibility of construction and financing assumptions, the reasonability of uh escalation, contingency and material costs, uh the lifecycle investment strategy and project projected budgets, and then the credit and affordability implications over the 30-year term.

In addition, we looked at the cost of reasonability and value validation where we looked at the cost per square square footage and made sure it aligned with Class A buildings, uh, made sure it uh met South Florida benchmarks.

We made sure that the uh components of the building uh were adequate for what we requested, uh, and then also that the construction costs were broken down uh in different uh silos, such as direct construction cost, uh, indirect construct construction cost and soft cost.

And the last uh pillar we looked at was just the responsiveness and completeness of the proposals, where we asked uh and looked for the inheritance the baseline program requirements and constraints, making sure that their proposal responded to the information that we put out, uh, that it was consistent with uh statutory compliance and that it uh had a completeness uh to the submission uh of all the information that we requested.

So that's really what we focused on.

Um in addition to that, we did submit a second version uh throughout this process, and that was based off of the feedback that the commission gave us on October 23rd.

And so that answered some of the uh further concerns of the commission illustrated the podium parking garage, uh litigation history.

Uh there was an uh about ten different things that we added uh and received that information back.

So that information is also in the recommendation report that staff has provided.

Um moving forward today, uh what we're gonna do is we're gonna hear from the city's consultant teams first.

We're gonna hear from Jacobs uh and then we'll hear from PFM.

They'll both do brief presentations about what their evaluation process looked like and what the uh outcome was.

And then we will turn it over to interim uh attorney uh Spence to do a quick overview of the litigation history.

And at that point, we will then go into presentations from the proposers.

Uh we do have a separate room secured, uh so when each uh presenter goes, we're gonna be asking the other firms to relocate downstairs.

Uh Andrew Diaz will be uh supporting that team and moving the people back and forth.

So we will have some transition in between presentations.

Uh once we get done with the fourth presentation, uh staff will be doing uh some additional analysis.

We'll be talking about uh uh the our our our position in this.

We'll be talking about the financial overview of what the city has budgeted and what financial resources are available moving forward.

Then we'll turn it over to the mayor to do some public comment, public outreach before we do city commission uh discussion.

I do just want to clarify and add that based on the statute, we're asking the commission to rank all of the proposals before us.

So not just number one and number two, but all four.

That's fine, we'll get to that.

Sure.

So is uh Jonathan Jordan here from Jacobs?

Good afternoon.

Good afternoon.

Afternoon.

Um Jonathan Jordan with Jacobs project management company, of course.

We're the owner's representative for the city.

Joining me is David V.

You have to speak can you speak into the microphone?

David.

Pull it down, pull it down.

There you go.

Sure.

Uh David Viet, uh also with Jacobs.

Uh I was involved with the review process and uh here does this.

Okay, great, thank you.

Um I'm going to be speaking to you today on the following subjects.

If we could go to the next slide, please.

Oh, I'm sorry, thank you.

As you can see from screen, uh the evaluation focus, the program, the scope, the cost, the schedule, escalation, contingency, and safety.

And as you're aware, the city issued a supplemental information request to the four shortlisted P3 proposers back in October 28th.

And they all responded on November 10th.

And we were issued, Jacobs was issued a task order number two to review and evaluate those responses and present the findings to you, the City Commission.

So our as per the task order evaluation really focused on construction scope and sequencing, cost breakdowns, the adherence to the building program requirements, phasing and schedule, and escalation factors and contingency provisions.

This slide, particularly the top of the slide, summarizes how the four firms viewed the building.

They came up with their own individual schemes as you're aware.

And these varied in size between 295,800 square feet to as much as 48,008 square feet.

However, that larger number, 408, 823 included a 222-car garage that was adjacent to the podium, which was part of their original concept.

So if you take that out, that was about 90,000 square feet.

That would get their building to very close to, you know, within range of all the others.

So they're really all in the same general range as far as size.

Cost varies somewhat from a low of 216,805,000 to as much as 344,295,000.

And on a square foot basis, as you can see, those range from $773 per square foot to 1,140, and that's total cost.

That's not just construction, that's with design fees, soft and hard costs, and the full the full package.

Now those costs per square foot are from our experience and our research reasonable for a Class A office building in South Florida.

Let me ask you a question.

When when we look at the least expensive uh cost and the most expensive, are we comparing apples to apples in terms of their building, their design, the components of that uh structure?

Uh is it an apples to apples comparison?

To a degree.

Um I'm sorry I can't be more direct, but you know, some of the designs are more complex, and because they are more complex, there's more cost of some of the building, some of the designs seem less complex, and so the cost would be less.

So as far as the spaces that are included, and then there's a slide to discuss, they all include the proper program and the square footage that the city requested be included.

So from that standpoint, they're all apples for apples.

But as far as you know, the actual, you know, the look of the building, the facade, the layout of the building, the shape of the building, the way they've shown where the chambers will be located in relation to the offices, that that has varied.

Okay.

Thank you.

Uh the bottom part of the slide merely shows some of the breakdown of the costs that are in the total costs, uh shows the design fees and how they vary, uh, shows some of the indirect soft costs and how they vary, and uh some of the contingency, which we'll get to in just a minute.

The city also asked the uh proposers to include two options for a thousand-car garage.

First option being locate it adjacent to the podium or in the podium, and the second option being to locate it on an adjacent site, assuming there is an adjacent site.

Um for the option one, those costs varied from 43.6 million to 82.6 million.

Pretty large, pretty large uh range there.

That was for the podium-based for the standalone garage on adjacent site, the cost varied from 35.3 million to 53 million.

Uh so pretty good range on those as well.

This slide shows the program and the square footages that the city asked all the proposers to make sure they had included in their design in their program in their project.

And it uh it's various spaces that are critical to the operation of the city as well as the square footage for those spaces.

And we confirmed with all four of the proposers that they had included uh these spaces and at least this much square footage.

So from that standpoint, we do have that apples for apples comparison.

All the firms submitted as requested a schedule.

There's a lot of schedule information, which you know we won't go into too much, but what we did uh for the purposes of today's presentation is compared overall duration from the start of or from the finalization of the interim agreement to final completion, not substantial, but final completion when the building is totally done.

And those time frames, overall durations vary from 36 to 43 months, uh with three of the firms being within two months of each other.

One of the firms, uh Fort Laurerdale Civic Partners indicated that they could get the chambers completed in November of 28 and complete the rest of the building three months later.

FTL Beacon indicated they could complete the whole project uh by December of 2028.

Um but they had a very aggressive 22-month schedule uh which really needs to be you know carefully studied.

As far as escalation and contingency provisions, uh as you can see from the slide, the contingency construction contingency that was included varied quite a bit between firms from 2.8 million to 16.5 million, uh, which is you know pretty pretty wide variance.

And then uh FTL Beacon included two other levels of contingency, one for design contingency and one for hard cost contingency, which wasn't really explained, but uh we thought perhaps it was uh just extra contingency for the developer on the top of the project.

An escalation varied from 2.5 percent to 8.25 percent.

However, for a project that's gonna be 38 to 43 months at three to three and a half percent per year, it's gonna be in the range of 6.6 to 8.25 over that period of time.

So just to let you know, that's how they saw it.

All the firms were requested to provide information on their safety programs and their statistics of how they've performed over the last three years.

And um, they all had very good safety statistics.

This is really for the general contractors that were part of the developer team.

And uh these statistics show that they had a very low frequency of incidents and they had good safety management record.

So, on all in all, they do a good job in safety.

There was one firm that had a subcontractor fatality back in 2001, but there wasn't much information on that included.

If there are any questions, I'll take them at this time.

Okay, does that complete your presentation?

Yes, it does.

Is the gentleman next to you have anything to add?

You're good?

Okay.

Um at this point, is there anyone have any questions or shall we just continue with the presentation?

Okay, thank you.

That's it right now.

Thank you.

But don't go too far.

Okay.

City manager.

So we're gonna invite PFM to provide information on the financials.

Okay, Sergio.

Yes, thank you, Mr.

Mayor.

Good afternoon, commissioners.

We also have a brief presentation, and then we'll start by just kind of setting the stage for what our scope covers and our what we plan to speak to you about today.

So, really, we looked at the financial strength of the proposers themselves, the capability to deliver the project.

That was a a core component of our of our analysis.

We also looked at the capital stack, the funding plan, and the proposed financing plans for each of the proposers.

And then finally, uh towards the end, we do have a a conclude some conclusionary marks and a recommendation, not in terms of recommendation, not in terms of which proposer you move forward with, but maybe how we structure the financing.

And I think that will look familiar to to many of you.

So looking again at a high level of the comparison of the proposals you received and the plan of finance and the and the capital stack, as we say, debt to equity ratios.

There was actually a lot more in common uh than different in each of the proposers.

I think that's that's to be expected.

Overall, most of the proposers expected it or presented a 90% debt ratio versus a 10% equity component.

Uh so 90-10 is is very standard to what we see for these types of projects.

Um the equity return ranged anywhere from 10 to 12 percent on the on that private equity, the 10% piece of the capital stack.

As far as the some of the differences we noted in the plan of finance, some proposers suggested a tax exempt structure using conduit issuers, some suggested a taxable structure, and really those have uh and and others had different ideas as to what the credit rating might be on those on those varying plans.

Um really that has a material impact on the financing for the city and what the ultimate cost is on on that on this component.

Really importantly, I want to say on this slide, we didn't know any red flags as far as the financial stability.

We believe all of these firms have the capability to deliver the project for the city.

On the next slide, we'll cover just quickly again the plan of finance and looking at the there were two requests made by the city.

One was a design build finance operate maintain, the other one was just a design build finance where the city would operate and maintain themselves.

In the chart here, we looked at only that bigger component the design build, finance, operate, maintain that included all the components that were requested by the city, operations and maintenance there.

And the highlighted number you see in the chart is the total cost in availability payment that the city would pay to each of these proposers, uh, depending on the structure you chose.

We tried to determine what the capital component was versus the operations and maintenance.

It was more clear in some proposals than others, so we had to infer somewhat there.

And I will footnote uh one of the proposers came up to me before the meeting and noted that the we pulled an incorrect number.

That was uh the the FTL beacon collaborative.

The OM component of that is not 13.5, it's actually 2.2.

That's something we discussed with the project team.

It was uh as you can see, pretty far out of the range of everyone else, so not surprising there.

So it's 2.2 there.

Immaterial to the city, I think, in that the overall cost is still all of these are correct 17.9 all the way up to 35.7.

And then one other note on this is that civic partners and beacon also suggested milestone payments for your pre-development costs.

So there are some pre-development costs before actual construction starts, design engineering, and they suggested some repayment.

The other two rolled that into the total availability payment that the city would pay.

So that's that's really an overview of the of the proposals you received, the total cost structure in the availability payment that they proposed.

Um, and again, as I mentioned, I'll leave you with financial stability.

We believe all these firms are capable of delivering the project.

Important note for you.

But I do want to step back and take kind of a 30,000 foot view here and look at the project delivery alternatives.

Uh, this will look familiar to many of you that were from are familiar with the prospect lake project that was funded a couple years ago.

There are components to project delivery and all the alternatives that go in with that.

You don't have to necessarily bundle them all together.

Design build, finance, operate, maintain, those are all discrete components.

There are best practices.

Design build, you likely want to bundle together.

You don't want a contractor blaming an engineer or an architect for the design.

Makes a lot of sense.

Operations and maintenance, kind of the same thing, you want to bundle those.

Finance, I really treat separately.

We believe there's a better mousetrap, and quite frankly, the city solved that mousetrap with the prospect lake project.

That as you know won a P3 award with the way we finance that project.

So let's let's talk about that for a minute, which we think might save some the city some some money.

Availability payments.

That's something I think is is talked about a lot in our industry.

Uh, a lot of folks don't understand the municipal space that well and how efficient it is.

City for Lauderdale has incredible access to capital, low cost capital.

You have a triple A credit rating, double A1 credit rating from the two agencies.

So the highest credit rating you can possibly achieve.

Anything you do, like a conduit issuer, that's gonna degrade that credit a little bit.

It's gonna kind of filter it through, it's gonna cost some basis points, and we'll talk about what that cost might mean.

As far as the auditors and how they'll treat that, there is no question in my mind, the auditors will treat this availability payment structure as on balance sheet financing.

It won't be off balance sheet, it will count in all of your credit metrics, it will count in the audit as a real liability, long-term liability.

That's an important note.

The credit agencies, we talked about that.

You have a triple A rating, a double A1 rating.

All of them have come out at this point.

Ten years ago, it was a little bit of a gray area.

Would this count this availability payment in their metrics?

Really depends on the type of project.

Is it revenue dependent?

Does it generate its own revenue?

Or is it a project like a city hall where the city needs to use it no matter what doesn't generate revenue?

They will all count it in the credit metrics in the criteria when they look at your credit.

No question about that.

So let's talk about the city's capabilities.

As I mentioned, tremendous access to capital, really the lowest cost capital you can possibly achieve.

I think all the proposals will tell you that.

If you use the city's credit, that is the best credit you can get.

And then we talked about the differences in some of the plans of finance.

Conduit issuers, uh, credit differences, whether it's a triple A, uh double A, single A, and then taxable versus tax exempt.

You'll see on the right hand side of this, you know, uh using a conduit issuer even on tax-em basis might cost the city somewhere between 50 and 25 basis points.

Each notch credit difference might cost the city another 10 to 30 basis points.

Those two are compounding.

If you go with the conduit issuer and it has a lower credit rating, right, those stack up.

Each present each each basis point on this project of a 200 million dollar financing, as you could see the the project costs were a little bit more than that, so we're being somewhat conservative.

So we're being somewhat conservative.

But each basis point was worth about 180,000 net present value.

So that's that's real money for the city that we can save.

And it doesn't, we're not transferring any risk.

You're not making this off balance sheet by using your own financing, really.

That's it's gonna be on balance sheet no matter what, one way or the other.

And then if you go taxable, that really does increase the cost quite a bit.

As you know, tax exempt versus taxable, somewhere in the range right now, I would say about 100 basis points, maybe up to 120 basis points.

We can also, as the city is aware, structure the financing however you want.

Um if you want to capitalize interest for the first three years of the of the project while construction is going on, that makes a lot of sense for the city.

As you know, you have the pension obligation bonds outstanding that are also secured by the special obligation credit, the C BNA.

Those bonds tail off in 2032.

You can start making more payments on on this project after that.

We can structure it that way.

The city structure their bonds uh a number of ways over the years.

So I think really important considerations here as you think about the project.

Um I'll wrap up here with the conclusions of recommendations.

I won't tell you which proposal to go with, um, which project.

That's that's certainly uh in in up to you.

But I will say, as far as the plan of finance and capital stack, I think we can make this a little bit more efficient by using the city's credit, very similar to what we did with prospect leak.

I think an important note there and our recommendation would be maintain the risk transfer, maintain some of that risk transfer you do get.

Design, build, operate, maintain.

You certainly want to put that risk on the private sector.

Uh they might do that more efficiently.

Financing the city, uh, incredible access capital, low cost capital, you can do that more efficiently.

There's no question about that.

Um we can split the O and M versus the capital component.

The chart I showed earlier.

There's a capital components the availability payment, and there's an O and M component.

We can split out that capital component, finance it on the city's with the city's credit rating, uh, and actually bring that cost down a little bit.

And then you'll still have the ONM on top of that.

If the OM is set up as a qualified management agreement, we can actually move the ONM to be off balance sheet.

So that will be a subordinate expense, you know, a current expense of the city, it won't count in your debt metrics.

It'll be that piece could be moved off balance sheet.

And then finally, as far as the capital stack, while we are suggesting the city finance this project uh yourselves using your own credit, that's the debt component.

We would still recommend you maintain a certain portion of equity in there.

10% equity for this type of project, you know, anywhere between five and ten percent.

And the reason we want that equity component is you still want ultimately the developer, the proposal team, you want them accountable long-term for this project.

You want the design to be right, you want the bill to be right, you want it to be delivered on time, and then you want the operations of maintenance and ultimately the handback to the city in 30 years uh to all be done to up to your standards.

So we think that 10% equity component keeps them in the game and keeps kind of skin in the game for for the development team.

I'll conclude there, but happy to take any questions if there are any.

Okay, any questions?

Gave us a lot of information.

You did.

I just want, and I thank you for that.

It's interesting to me because I did notice when reading the materials that you do really stress a lot about availability payment.

So what you're saying now, I didn't read so much in the report in terms of heavily recommending that the city do the same thing as the water treatment plan, and we look at because of our strong record, the financing.

Is that the reason why that wasn't even really discussed that much in the summary of your report in terms of looking at all of the presenters in terms of that financing?

Is that the reason why it's sort of downplayed?

That's absolutely right.

We really wanted to the report to reflect uh our review of the proposals you received and not so much our view as to how you should finance this project.

Okay.

No, thank you for that.

I I didn't realize it until you just made that recommendation in terms of us looking at our strong record for financing.

Thank you.

Anyone else have any questions?

Yeah, mayor.

Thanks.

Thanks for your analysis on this.

Um, in terms of city financing, any just so I'm clear, any um uh of the bidders hesitant towards that model.

I'm glad you asked that question, and there was one that was hesitant to it, and I will pull that up for you in a second.

Well, you spelling that out, Raquel, I'm just then maybe you're gonna share this, but um, your view of the financing option in terms of city financing.

What's your view?

Yes, I think the city should participate in the financing of the project, and we should have that 10% equity in the project.

Yep, I agree with that.

Great.

Thank you.

So Commissioner Sorensen, um, I noted actually on in the comparison plan of finance.

All three of the four proposals said they were basically agnostic.

They they would work with the city if the city decided to finance it themselves.

They strongly preferred the full design bill of finance, operate maintain.

Great.

Thank you.

Any other questions?

Okay.

Thank you.

Thank you.

Don't go too far.

Okay.

Uh now the next uh the next item we would like to discuss before we begin with the presentations is to ask um Mr.

Spence uh giving us a report on litigation history findings.

Good afternoon, Commission.

Um exhibit 2A of your packets on page 63, you'll find a litigation review.

Um so I'll just briefly explain uh what this document, the information that's provided in this section of the uh presentation uh means.

Uh and to facilitate the Commission having a clear picture of the litigation history of each of the proposers, our office prepared a litigation history form that we asked the proposers to complete and certify.

That firm that form required each proposer to disclose to the city any litigation, administrative proceeding, claim or dispute filed, pending or resolved during the last 10 years prior to the submission of the proposal for the qualified project, and whether such matters were brought by or against the proposer, any parent or subsidiary of the proposer, it's or any pre predecessor organization.

Additionally, all proposers were required to disclose to the city all litigation and administrative cases filed pending threatened or resolved against any principal of the proposer, regardless of whether or not the principal was associated with the proposer at the time of the litigation commenced against the principal during the last five years prior to the submission of their proposal.

So that form is was summarized by staff and included at the beginning of each um proposer listed in that portion of the exhibit, followed by a docket search.

The West Law precision docket search tool is a legal research feature that allows users to find and analyze court dockets through advanced search filters and AI-powered summaries.

This may result in the inclusion of cases from other entities with similar names to those as a proposers included in the report where a number of open and closed cases for federal, state, and international courts.

The caveat that we provide there is that using their product is not the same as using the individual jurisdiction searches.

So if you were to search the databases directly with the individual courts or jurisdiction, you may receive a different result.

This search resulted in uh over 48,000 cases.

Um 48,000?

48,000 cases.

And so you've so we've just provided you a summary of the cases found in the dockets based on the subject matter, and that's what is provided in the packet.

And we hope that uh this information is useful to the commission as it evaluates the uh proposals.

Okay, so the bottom line uh is you know 67 pages, but so for the public to understand, are there any pending litigation matters with any of the um contractors or subcontractors that are being presenting that are presenting today?

Yes, they have disclosed.

Um several of the proposers have disclosed on their submission forms, which are also provided in your packets uh some of the cases that are before them.

And what I would encourage the Commission to do is to inquire directly with the proposers as to the status of the those.

Are there any with the city?

Is the city a party to any of these litigation matters uh wherein the uh uh any contractor or subcontractor of a presenter is is currently either plaintiff or defendant?

Uh we we recently settled a case with um that involved one of the proposers uh with regard well we have two cases, yes.

We have the case with the um Los Alis uh Garage and also the case with uh fire station 54, which uh we recently settled.

where we're in the uh uh any contractor or subcontractor of a presenter is is currently either plaintive or defendant uh we we recently settled a case with um that involved one of the proposers uh uh with regard well we have two cases yes we have the case with the um also uh garage um and also the case with uh fire station 54 which uh we recently settled and which which contractor or subcontractor are those uh those lawsuits with so the the firm that's involved with the Los Oldist garage is Architectonica and the uh with fire station 54 that would be PGAL could you repeat that P GAL?

Pigal and that's the uh station 54?

That's correct.

Didn't we just come to a settlement with that?

That's that yes sir we have.

Okay.

And which of the four broader developers is architectanica with I can answer Architectonica is with FTL Beacon partners.

So FTL beacon Architectonica is the lead architect for FTL Beacon Collaborative and PGAL is the architect of record for FTL City Hall partners.

Thanks but we've we've settled that case correct that that is my understanding.

Yeah.

Well we did okay all right does that conclude your your presentation it does okay um city manager is there anything anything for oh do you have any questions of yeah go ahead can we ask Dwayne a question?

Yeah no thank you Duane I appreciate that um so doane I just want to look at exhibit one page 22 of 27 and page 23 of 27 with you and we heard a little bit about this from our consultants where much of it was said was the you know subcontractors and not necessarily the principles that we're looking at on the proposal teams.

But if you look at uh 12 point three um should that be of a concern do we need to flesh that out more where it says staff notes that some proposal information includes a serious OSHA citation, a 2021 fatality and in one case no OSHA citation information was provided is that something that we need to be concerned about or should flesh out when we uh see all of the presentations or is that something that's not necessarily disqualifying nor should we be concerned about it.

So in terms of that being a disqualifying factor is something that is for the city commission to determine whether or not uh those types of uh risk is something that you're willing to take in terms of the history of uh the proposers and and the jobs that they've done in the past um uh staff has correctly identified that type of activity is concerning but um i I think you can flesh it out with the proposers as they present and and ask what type of measures that their companies have taken to ensure that there is workplace safety um measures in place to ensure compliance okay if you look uh with me then on the next page 23 and let's look at um letter B yes 12.4B on the top again um it says one or more proposers disclose design or professional negligence matters connected to civic or municipal scale buildings these are not per se disqualifying however the Commission may see clarification regarding the nature and relevance of such matters during the presentation for you so again I would ask you um is that again something that you would find would have any weight uh when we do discuss our rankings in terms of uh those those issues it should be part of your consideration okay because obviously these were not identified by proposers so I guess we would have to ask that of every single one is there any reason why it was just basically stated that you know one or more proposals disclosed design or professional negligence matters connected to municipal or civic buildings is there any reason why it wasn't more clear or were we expected to do some more research there?

No I I think that's an accurate statement.

So we what we've provided is a litigation history form that we ask each proposer to list and certify to I think that statement is just stating that we are relying upon uh the proposers in terms of what they've disclosed on that form that that is what that is indicating.

Okay.

It says that PGAL is the architect of record, and I do not believe that is correct.

So, Commissioner, I guess that's something that you highlighted in our agenda briefing yesterday, and that is correct.

However, um based on the question asked today, the information provided is accurate.

Okay.

Thank you.

So what is the answer?

PGA.

Well, it says on page 13 of 27 exhibit one under letter on number eight evaluation summary, FTL Beacon Collaborate.

It says PGAL is the architect of record, but that that's not correct.

And in the summary sheet provided to you earlier and provided to the clerk for the record, we have PGAL listed as the architect of record for FTL City Hall Partners.

Yes.

Yes.

So uh again, Mayor, that was listed incorrectly on page 13 of 27.

Thank you.

Dwayne, what's the nature of the suit, the Lasola suit with Architectonica and the status?

So the the suit involves both the lighting and the meshing.

Um we have uh brought in our parties associated with the design and construction and installation of those features and the status of the cities that we're still uh going through the process of uh discovery and depositions.

Thanks.

Okay, any other questions of uh Mr.

Spence?

Okay, there being none.

Uh uh City Manager, do you have any additional comments before we begin?

No comments.

Okay, great.

All right, so why don't we proceed?

And as I indicated earlier, we'll start with Balfour Beatty, and I guess the others are going to be dismissed downstairs.

Clearing the room.

Headphones.

They play music.

It's like the Miss America page.

They go into a booth.

Oh very few papers.

There aren't any.

There aren't any.

Well, you got Ted and Sarah's here.

Yeah.

Well, they'll just come on.

Are you ready?

Oh.

Okay, so let's get going.

We are we're behind schedule a little bit, so we'd like to uh make sure we don't shortchange anybody in their in their attempt to make their presentation.

Who's keeping the time?

We've got 30 minutes, right?

So time limitation.

Okay, nice.

Just want to make sure everybody's is everybody who's not part of Balfour Beatty not in the room or part of the public.

Okay.

All right.

So as who's gonna be the uh who's gonna be the uh initial spokesperson for Balfour Beatty?

I have uh a number of people for Balfour Beatty.

So there's Mark Jennings, uh Pratima Rajou, uh Kobe Karp, Jonathan Perch, Todd Orr, and Alec Bogdanov, and uh Peter Moore.

Are all of you going to be speaking in this regard?

Uh all of us except for Petima will be speaking.

Okay.

So m Mr.

Jennings?

Okay.

So we had agreed that uh there'll be 30 minutes of presentation and then 15 minutes of uh question answer period after that.

But that doesn't preclude the commissioner from wanting to ask questions during the presentation, but we'll certainly make sure you have your full 30 minutes, okay?

Fantastic.

Okay, great.

So um let us begin.

And who, Mayor, just to be clear, are you keeping time on the course you're keeping time?

All right.

Let it begin.

Do you want to keep time?

Happy to if you like me too.

Okay.

Uh great.

Well, good afternoon.

Uh just move this up there.

I'll need to move it up and down.

I'm a bit vertically challenged.

Um, Vice Mayor Commissioners, good afternoon.

Uh, my name is Mark Jennings.

I'm the president of Balfour BT developments, and it's my honor to be here today uh to speak to you to present this team and our vision for how we can work with you to develop your new city hall.

Um we are a little tight on time, as you mentioned, 30 minutes.

So I'm not planning on us talking through who we are right now.

You have a handout with our mugshots on and our names, which hopefully that will be useful as a point of reference.

So without further ado, we'll kick off and we'll start with who we are.

Who is this team?

Why did we bring this team together?

You can see on the left here, I'll look down here, it's easier.

We have uh our corporate structure there that we are proposing, and down the left a few bullet points that highlight some key points that will be brought out through this presentation uh about our company.

And really, we brought this team together uh to deliver the best value for money, low cost City Hall that you and your residents deserve.

And there's a couple of points I'm gonna bring out on this slide, and the rest will be brought out through the presentation.

The first one I really do want to highlight is this team is truly local.

When you look at the structure diagram, Balphabiti has been building here in South Florida and Fort Lauderdale for the past 90 years.

We've just delivered the convention center uh just down the road.

Brizago and Chem Moore, uh, you know they're headquartered right here in Fort Lauderdale.

Kobe Carp, our architect, headquartered just down the road in Miami.

And joints and controls, the market leader in FM and lifecycle provision is providing the only other availability payment P3 project in Florida just down the road in Miami.

Why should you care that we're local?

Well, fundamentally, construction is a local business.

Yes, it's great to have the financial strength and the international buying power that comes with large companies like ours, but really you need to understand how to build here.

You need to understand the subcontract market.

That's really important to get the lowest available cost.

You need to understand permitting, you need to understand resiliency, and that's what this team brings.

The other point I do want to highlight is we're vertically integrated, which is basically just a fancy way of saying Balfour BT is the developer and the builder.

The reason that's important is we bring a single culture of transparent partnership to this team.

We're not laying risk money on top of risk money so we can provide a low-cost solution, and most importantly, we are completely flexible with regards to the financing solution.

If you want to deliver a divide design build finance maintain project, a design build finance project, or just a design build project, we want to be your partner.

The suggestion PFM made earlier about having you all provide the financing and us provide a tranche of equity, we fully support that.

That makes a lot of sense.

And we'd love to have the opportunity to discuss those options with you to get the best uh solution.

But we didn't just bring this team together because we're local and we're vertically integrated.

This team is also very experienced.

As you can see from this slide here, uh, we've developed over 130 P3 projects, but importantly, 25 of those have been progressive P3s.

This is a progressive P3, and that's really important through that interim agreement phase where the partnership needs to work.

We bring that experience.

We're currently doing one just up the road in the University of Florida.

We build right here in Fort Lauderdale.

This construction team has delivered over 3.4 billion dollars worth of projects here in this city.

I mentioned Johnson Controls.

They are the market leader, hands down, and they'll speak about that a bit later.

Balfour Beattie and DLR have delivered over 350 municipal projects.

So this team is hugely experienced.

It's also got the financial wherewithal to deliver this project.

You'll see there, Balfour Beattie has over 1.3 billion dollars in daily net cash.

Johnson Controls has even more.

The reason why that's important is if you're structuring this with private finance, the lenders look to the prime contractors' financial resilience.

That's where they get their comfort, and that allows them to put higher leverage solutions, which is cost effective.

And we'll touch on that a bit later as well.

And finally, safety.

Safety is important.

We pride ourselves on our safety uh our safety record, and it's not just the safety of the folks who come to work at our sites, that's our license to work.

It's also the safety for the members of the public who walk past that site.

This is a downtown um site.

So that's really important, and we pride ourselves on that.

Now I'm gonna hand over to John who's gonna talk a little bit about how we envision working with you throughout this process.

John.

Thank you, Mark.

Good afternoon.

My name is John Peirch.

I'm vice president of operations for Balphabini Construction, uh, based here in South Florida.

So Mark touched a little bit about our group and the expertise and the skill set that we have, and we tried to outline exactly how we see that working.

So, what we don't want to do is be part of the team, then go away to our respective offices and not have an ability to collaborate.

So, what you see here are different working groups that we've organized together, but more significantly, what you'll see in the blue boxes is where we've tried to assign staff to each one of those working groups.

That helps you know keep the information current, helps us collaboratively plan together, and more importantly, the names and faces that you see on there are also the names and faces that you're gonna see here today.

So how does that all start?

So what's unique about Balfor Beattie is that we have basically a meeting one, which is a collaborative session called Smart Start.

So Smart Start is where we invite all stakeholders for this project.

We essentially look at values alignment.

We look at milestone alignment.

We look at how we're developing the design and how we're going to communicate with each other.

We develop um kind of set of the expectations between all of our groups so we know exactly how we are going to communicate amongst ourselves.

But then also importantly, we also look at the milestones.

So schedule is very important to this.

Uh you'll hear a little bit about the um the interim agreement phase and those milestones we're going to talk about earlier.

We take a reverse phase look at this and really plan out what are the milestones working backwards that helped us to achieve those different milestones, which Mark was going to talk about right now.

Thanks, man.

So sorry, a little bit of chopping and changing that.

But um, I I do want to say the smart start process as well.

Um we've used it many times before.

It's also a lot of fun, so I do hope we get the chance to do that with you.

Um SmartStar kicks us off on the right foot on this journey, and it is a journey with a progressive P3 uh and the interim uh agreement.

And it's important at this stage, you're not selecting a final solution and a final project and a final product.

You're looking to select a partner to go through this journey with you to come up with the right solutions for you and your residents in the city.

Um so a couple of points on the interim agreement phase I just want to highlight.

The first one is we're targeting financial close in March 2027.

Uh, this is after 14 months of the interim agreement phase.

Now that may seem a long time, but that allows us to work in partnership together to develop the contracts, to develop the designs, to develop them to a point where we can be very low on our contingency and provide a better value for money solution for you.

Now we have multiple tools that we can bring to bear to make this an effective and efficient process to develop uh the solution with you.

And importantly, I want to reiterate what I mentioned earlier.

We're not wedded to a structure or a solution.

We want to provide information to you on a transparent basis through this interim agreement phase.

So you have information when decisions are made, you can see what the cost is over the 30 years, and you can make the right decision.

And that's a really important iterative process.

The final point I do just want to make here on the uh interim agreement phase is you'll see that we have the execution of the uh interim agreement scheduled for the end of January in 2026.

Now that may seem aggressive, uh, but we have delivered interim agreements on phases shorter than that.

And the one thing I did want to highlight, I have a draft interim agreement right here, based on a precedent that we're doing right now, just up the uh up the state at the University of Florida.

If we're fortunate enough to be selected by you to be your partner, I will deliver this to Raquel and her team tomorrow morning, and we are literally ready to start working on this and moving ahead.

So that gives you a bit of a flavor of what we'd look to do.

Clearly, we're trying to cover a lot of information in a short amount of time.

But I think it's important now to go on to some of the vision for the building that we have.

So I'm gonna pass over to Kobe, and if we could go to the video, that would be uh amazing.

Kobe.

Thank you.

Good afternoon.

Uh I'll be brief as we're playing a little video, which as was mentioned.

It is our vision, yet it allows us to create a sustainable and resilient design that at the same time will allow us to carve the spaces and make it unique and special for us here in Fort Lauderdale.

This is our home.

This is your home.

What we did is we took the opportunity to create a design that is uniquely Fort Lauderdale, the curves, the integration of the outdoor spaces in a very sustainable and natural feeling.

The feeling of what we have out here, the curves of the river, the sand dunes, the design that we have here in Fort Lauderdale is second to none.

We took the program that you gave us and we raised it up in the air and took the public land, the public space, and brought it back to the public.

Both indoor and outdoor spaces.

They are the spaces that belong to the public, and we took the program and we lifted it up in the air.

That allowed us to create a very unique urban destination.

This location, which is basically the 50 yard line.

We're in the 50 yard line in a relationship to where it is the train stops, where we are on Broward County Boulevard, and how it is that we have an opportunity second to none to create a destination where the public can come in and use on a daily basis in the comfort of their home.

This is our home.

This is Fort Lauderdale.

This is the design that we wish to give a feeling to.

This is just a prelude to where we are going.

There will be dialogue and there'll be placing of the feelings and the designs of each and every space.

But you see here, we have taken the thought and came up with a vision and an idea, second to none.

That nobody else, not only in the state of Florida, not only in the Lower 48 in the United States of America, but nobody else has this kind of a land in this kind of a location in this kind of a concept.

Footsteps away from the river footsteps away from the train station, great location to come by and spend time, both for public events and on Saturdays and Sundays.

If you want to have a festival outside or have a choir, if you want to come out here and enjoy yourself with your friends and family, or have a nice covered walkway from the garages where you're protected from the rain and from the sun, this is what it's about.

It is to give you the inspiration and the design that we wish to carry here.

We are uniquely special here, and the opportunity that we have as a team, as a group here in this room, to create a design that is special and unique to Fort Lauderdale, second to none.

Yes, I'm an architect, I'd like to win awards, and we all do.

But this is really a step above and beyond.

This is a unique opportunity for us to take a step forward that nobody else has done before, not anywhere else.

And that's why I am part of this very, very strong and important team.

Thank you for your time.

Great, thank you.

You are yes, uh Todd Orr with the DLR group, uh principal.

Um we're gonna talk a little bit about uh my role.

I'm gonna be the civic planner and designer on the project.

And so what that means is I'm gonna be in the room with you and your staff, working through uh the interior design of the project, understanding how we're gonna create a building that's operationally efficient, one that's user-friendly, and one that's customer service driven.

And what that means is as we organize the building, as you see graphically in the stacking section, we want to praise high volume functions that are easily accessible to the public coming to the city hall.

As an example, the commission chambers, the community spaces, and planning and development, those are the type of spaces that we'd highlight to bring down lower in the building so that ease of use and wayfinding for those citizens uh coming to the new city hall.

As Kobe described, we're talking about a building that is unique to Fort Lauderdale.

So the interior and exterior divinement and interior exterior design is seamless and it speaks to the community and it speaks to the sense of place.

So as you look at the main entry lobby, it's the sort of the front door to the to the city hall, bringing people into a light-filled environment, multi-story space that allows for usual visual cues from the first floor to the second floor, as we talked about, that customer service approach.

If you have that easy line of sight to all the departments and divisions you need to go to, that it supports that easy use of wayfinding that's so important in our city hall buildings.

We're gonna use durable materials.

We have opportunities for public art to enrich and alive in the space and make sure it's durable and maintainable for the life of the building.

As we talk about the commission chamber specifically, it is an important functional space.

And we must let's not forget that.

It is important from this climate control when you have a hundred people sitting in a room for a commission meeting.

The lighting must support the tasks that go into the meeting.

We must not create glare and must be an enriching the space and be supportive of the environment.

It must be acoustically tuned.

We must be able to heal people speak and be able to understand what's being presented.

And finally, in the situation that you're living in here today, technology and integrating technology in the commission chamber is so very important.

The setup time will go away in a new facility.

It'll be a quick flick flip of the switch, it'll be integrated into the design, easy to use for you day in and day out.

And finally, when we talk about a new city hall building, it is going to speak to the people who live and work in this building day in and day out, eight hours a day, that the environments they create that we create and they work in must inspire them and make them enjoy coming to work.

And we know from data and research that people enjoy coming to work, they're more productive, and it also increases employee retention, which is so important.

So we've talked a lot about the project working both outside in and inside out, is how we approach our design.

And now I like to turn it over to Peter who's gonna talk a little bit about the site aspects as it relates to the new city hall.

Great, thank you.

Peter Moore.

Thank you.

I appreciate that.

And I had to put the microphone down low.

Uh good afternoon.

I'm Peter Moore.

I'm the president and CEO of Chen Moore and Associates, uh, headquartered right here in Fort Lauderdale.

Chen Moore has done over fifty projects over the last 35 years for the city of Fort Lauderdale, including design, design build, and P3 projects.

And today, according to the South Florida Business Journal, we are the largest engineering firm headquartered in the city and in the county.

The schematic site plan presented here, you'll see there's several important features.

And as Kobe mentioned several times, it's this this is the gateway to our city.

And the proximity of the Bright Line Station, which we were the designers of, and the impacts on right-aways and utilities.

Chenmore has done a lot of emergency projects, a lot of utility projects for the city, and we're very proud of our knowledge of the city's projects.

In here, um, right now we're under contract for the A5 pump station.

It's actually going to relieve a lot of the sewer, the sewer issues that are coming out of downtown.

Uh, one of the original sites for this was particularly going to be on the City Hall site.

Obviously, that's not something that's preferred, but our knowledge of the local utilities and local things like that are very, very important.

I was born in the city, right here at Holy Cross Hospital, and my wife and I are raising my daughter in the city.

So being exposed to outside outdoor spaces is incredibly important.

Right now, it's not included in our proposal, but you'll see we have a consideration to uh to the one stop shop.

If you'd like to talk more about that, we can do that in the uh in the questions and answers.

But alongside to me today is I have Dr.

Alec Bagnarov with Brazaga, another Fort Lardell based business.

Chenware Brazaga are partnered on dozens of projects, and together we bring deep local expertise and statewide leadership and flood resilience, stormwater regulations, and the impacts of sea level rise in climate change, including groundwater table issues, which will impact us from day one.

This team understands that we're not we're here today only because the old city hall flooded.

And resilience cannot wait.

That's why we're here today, help Fort Laurel build a city hall worthy of the people it serves.

One that stands strong through storms, supports our community every day, and becomes a model for resilience across Florida and beyond.

Thank you.

Great.

Thank you.

Thanks.

And last but not least, Alec Bagner.

Oh, Alec is there for eye candy, but he is he is available for questions afterwards.

I would hang it up right now.

So we've seen a little bit about the building and the vision of the building, and you know what we have tried to achieve with that is something that is aesthetically pleasing, but importantly is cost effective.

It's really important.

So I think it's important now for us just to touch on some numbers and the financing a little bit, and I want to reiterate the point I mentioned earlier.

We are completely flexible on the financing structure.

We're not an infrastructure fund, we don't have to put dollars to work.

We are an integrated infrastructure services company.

So whether you choose a design build finance with no equity in, or a DBFM with equity in, or the structure that PFM recommended earlier, we are completely on board with all of those.

We just want to help select the right solution for the city.

So I'm going to touch a little bit on our uh structure and then come back to the numbers.

So in response to the supplemental information request, we put forward what we thought was our best structure for a DBFM, a design build finance maintain, and a DBF.

The difference between the two being on a DBFM, the facilities management and lifecycle costs are risk is retained by the private sector.

So in both those structures, we propose tax exempt bonds utilizing a 501c3 not-for-profit entity.

In the DBFM structure, we augment that with sponsor-provided subordinated debt and a qualified management agreement, and that basically provides the risk capital that takes the risk in place.

We've provided this structure before.

In fact, we provided that structure just up the road at the univers at the Florida Atlantic University student housing project that we did.

Importantly, because Baufa BT and Johnson controls are financially robust entities, lenders can have aggressive leverage assumptions.

Now, one thing I saw in the PFM presentation, they said our leverage was 90%.

You can see here actually it was 94% in our DBFM uh structure.

Uh and that's based off a 115 coverage ratio, and we believe is highly deliverable.

Um the other thing that feeds into this is when people talk about the cost of these, naturally they gravitate to the cost of construction.

Of course they do.

But there's more than just cost of construction, it's cost of construction, schedule, the financial structure cost, and the cost of the operations.

So on cost of construction here, our cost is $773 per square foot.

That's based off of our efficient design, uh uh understanding of the sub market here in Fort Lauderdale, and we also have a 38-month uh notice to proceed to construction completion schedule, again, informed by our design and informed by our experience.

You're as you mentioned, heard earlier from Jacobs, versus deliverable.

Our financing structure cost, uh again, everything here you heard confirmed by PFM deliverable.

The other point I want to highlight, FM cost.

RFM cost with Johnson controls, which Don will speak to in a minute, is 1.9 million dollars per year.

There are some other aspects that feed into that graph with the differential, which I'm happy to uh answer questions on if that's useful.

What that results in is on the DBFM, the amount of money that the city needs to spend is 17.9 million dollars per year.

Thank you for the water, Kobe.

Uh 17.9 million dollars per year.

That's the lowest of all the bidders.

And I know that you cannot base your decision solely off of numbers today.

I get that.

However, when you compare this number to the most expensive number at 34.8 million, I think it is pertinent to note that over a 30-year concession.

That's a difference of 57 million dollars.

That's significant.

And therefore, I think that whilst you cannot base your decision solely off these numbers, it is an important consideration here.

And I think that what we bring with cost-effective design with our local presence and understanding of the submarket and our flexibility on financing, we can help deliver the best value solution for the city.

Now I've mentioned uh DBFM a couple of times, so I'm gonna ask Dom to come and have a chat about facilities management.

Don't work.

I'm Don't I'm Don White with Johnson Controls.

We're a 23 billion dollar organization.

We've got 2400 employees in the state of Florida, and as Mark said earlier, 43 P3 operations across North America by far, by far the market leader.

So we'll spend a few minutes here just talking about some of the nuance to FM and the P3 space.

And Mark and others have talked about this first from this whole life cost concept.

We're looking at not we're looking at the term of the cost, the 30-year cost, not just the first cost in that regard and all the costs that go into it, the cost of operations, inclusive of the cost of energy, and I'll touch base on that in just a moment.

We're integrated with the design team in the smart start concept.

You'll see us in those rooms talking to the folks, talking to the design team about what's the best cost for this in terms of first cost versus 30-year cost.

The analogy we always use, elevators is a big one, not to choose the lowest cost first, and also the one we can all understand carpet versus tile, terrizo, those sorts of things.

Those are all sort of the things that we get into.

This next point, the 30-year fixed price, the price for the ONM and life cycle will be fixed for the 30-year term.

We take all the risk associated with that.

If there's repairs that are untimely, that goes back to us.

But that's literally all that's in there in that regard.

We take it all in that respect.

The only thing we don't take, and I'll touch base on that in just a second, is the cost of the unit energy.

So the guaranteed energy consumption will guarantee the consumption, the energy consumption of the building for 30 years.

Not the unit price of energy, the units of the energy.

And if by chance it were to come out that the building's using more, then it comes on comes out of our pockets to fix that.

So if that means that we're there's going to be financial penalties associated with it, we're up for the game.

We've proven it we can do it.

And we'll invest capital out of our own pockets to correct those measures where they need to be done.

The next point, the full risk transfer, touched base on this with the energy.

If by chance, over this 30-year period, operations cost or repair costs come out that we weren't expecting, again that comes out of our pockets.

The city is made whole.

So the 30 again, the 30-year price is fixed.

The only adjustment is just a consumer price index variable that we'll agree to at project close.

That's it.

So lastly, this point about handback.

It's a P3 nuance.

So at the end of the 30-year term, the building's not going to be handed back to you where we're really running out the door.

Quite the opposite.

We hand back the building, it's got a considerable amount of remaining useful life.

And in the project agreement, we'll actually get into the document and detail it by asset class to show you what the remaining useful life is.

And then throughout the 30-year term, a third-party consultant will be coming in and assessing us and looking at how we're doing.

And if we're behind it over, say every five years, then again, that's another investment that you've got with Johnson Controls that doesn't come out of the city's pockets.

So a couple other points here.

We've got a couple of slides here from some of our clients.

Long Beach Civic Center, you can see what the metrics are there.

We're doing quite well.

That's in the ninth year of operation.

The next one is many of you have seen this one, Miami Dade Courthouse.

That just commenced commenced operations in October.

And I like what you may have heard with some of the developers or the general contractors.

We've got a great relationship with the city staff.

That's it from me.

Thanks, Peter.

Okay, thank you.

So we'd like to touch on a little bit further about construction.

So we talked on the interim agreement phase.

Wanted to kind of jump into construction as it is.

In order to achieve that and get that construction start in early April, really we're looking at starting permitting back in July.

And that would be the site permitting from Peter's team to try to start to put that ball into motion while DLR and the team is finishing their uh designs for us to go out and get to a guaranteed maximum price.

So guaranteed maximum price feeds into our financial close with some buffer and we would start construction in April of 2027.

So in that construction bar uh you could see our structure starting in July uh summertime of 2027 we would then be in structure for about eight months uh coming into um March of 28 and then we would have 12 months in order to dry in and finish the building for a total of 24 months which is more than doable for this size of a building.

So before and after construction we also want to talk a little bit about engagement how we're going to go about doing that.

So design Charettes with the public are very important to us uh DLR is no stranger to that.

Us and the team will be there.

It's also important for us to engage vendors and subcontractors as well.

So you'll see this town hall here that's for us to put out to the market to gain uh enthusiasm and excitement about our project that will drive more um uh more bids for us during the time when we're ready to take bin obviously uh comes back to you as best price uh that we've done before that excitement we want to go ahead and parlay back to the public so of course we want to have live feeds uh cameras monthly updates uh that we can go ahead and share with the public of how we are going about the construction and then finally job generation uh this is extremely important when we talk about us getting into the ecosystem again of downtown supporting those adjacent businesses but also the trade partners and so I'd like to touch on a few things here at the Broward County Convention Center and Hotel we over exceeded our goal for expenditures of almost 45% uh for CBE uh enterprises but I think most importantly is a handful of those actually graduated from the program while at that job so it's very important thanks Joe and I've got a lozenge now so hopefully I won't choke to death up here.

So just one thing I wanted to highlight here the LAX also made a people mover project.

So on that project very large project we had to generate in excess of six hundred and sixty million dollars of business for disadvantaged business enterprises.

We've exceeded that we had to do that because if we didn't we'd be subject to contractual deductions in the contract and that is a structure that we're very comfortable with and we'd love to discuss with you at the next stage because if you're interested in that we're interested in that and it can really help make this more than just a project of bricks and mortar it can make it a legacy so that brings us to the end of our presentation I'd like to just say a few passing words before we open it up to questions if that's okay.

So this team is genuinely embedded in your community and we do believe that this is the best team to be your partner over this journey and it is a journey as I said you're not picking a solution today you're picking a partner to work with Balford BT we believe in the power of infrastructure to enhance communities and to leave a legacy that the residents of Fort Lauderdale will feel for the next three decades.

As I said we're local that helps result in low cost solutions.

This team is experienced we develop mega projects we've developed them right here in Fort Lauderdale on time and on budget.

I also think it's important to say when I say low cost solution I don't mean low quality I mean we design out frivolous cost we put in place solutions that are cost effective and value for money.

We have the lowest cost structure we have an achievable design build schedule and achievable cost all as advised by your advisors we're vertically integrated that means you're gonna get a seamless experience means we're flexible on the financing uh we are very open to whatever structure makes the most sense for you and overall I think that we represent the lowest cost solution for the city but most importantly the lowest risk solution for the city as you embark on this process.

And above all else we want to be good partners we want to be completely open and transparent.

We have tried to be as involved in this process as we can with clarification questions, reaching out meeting trying to understand what you all want so we can help make it a reality.

And if we're fortunate enough to be selected by you as your partner we are all of us here and all of our teams are ready to start work on this tomorrow on this exciting project that is genuinely going to be awesome.

So thank you so much for allowing us to present thank you for allowing us to be part of the process to date and we welcome any questions that you uh that you may have thank you so much really appreciate you you kept your time almost exactly 30 minutes so thank you.

I opened it up to questions we'll start with the Vice Mayor do you have any questions?

Okay Commissioner Beasley Pittman Yes I have a question regarding um job generation um if you can go in some details of how um what method you're going to do to include um local employment.

John Okay.

Yeah, I think it really starts with these town halls that I had mentioned.

Okay.

Um the town halls, we've had great success in knowing that when we get brought on from a conceptual stage to move it through, we have time to generate both excitement for the project but also opportunities.

Um that's really the forefront mechanism that we use in order to generate those jobs.

And then uh as we move forward with our different uh trade partners, we extend that out to the actual physical workers where we encourage them to hire locally as well.

Is there any um percentage commitment that you have to ensure um a certain amount of um local employment from the city?

It it's hard for us to employ uh directly as the contractor because that's outs outsourced.

What we have done before is we've augmented our team with local smaller contractors themselves uh here in the city, and we'd be willing to do that as well to be part of our staff.

We have done that before.

Okay, thank you.

Okay, Commissioner Glassman.

Oh, sorry.

I was just gonna say to augment that, what we're also very willing to do is to put that commitment contractually in the comprehensive agreement.

So if we don't hit those thresholds, and that's monitored jointly between yourselves and us.

If we don't hit those thresholds, then we suffer financial penalties.

So we're very committed to it.

We're not just paying lip service to it.

It's a fundamentally important point.

Thank you for that.

Thank you.

Okay.

I I guess I'll ask some questions.

All right.

Thank you.

Appreciate it.

First of all, great team.

I really so appreciate all of the work here, and I'm I'll probably end up saying that to all of the teams today.

I was really just so really impressed with the questions you submitted, the documents.

I I it's this is a tough one.

It's a tough one.

Um I have just two questions.

Um you just show a slide a little bit earlier.

I don't know if we can go back to it, but um, they were percentages, and I was just wondering, is that 4.24 percent?

Is that a realistic number?

There you go.

Is that a realistic number uh in terms of today's markets in terms of executing debt, or is that is that low?

That that it what that is is that's from the tax exempt bond market.

We've assumed, I think we assumed an average life.

It's a 30-year contract, but we assumed an average life, I think, of 20 years on the bond.

That was advised as of Bank of America as to the running yield on um tax exempt bonds at the time of submission.

I'm sorry, I think that was November the 8th.

I'm sorry, I'd need to check on the date.

Okay.

Um but it's yes, we've at that point we think it is um realistic.

I have actually checked it since it stayed relatively stable because it's long-tenant, it's 20 years.

There's not a huge amount of short-term volatility.

Um it's also worth pointing out, you know, what uh one of our other competitors on their tax exempt solution, they had a um uh yield, I think marginally underneath that, but about the same.

So yeah, I think it is uh highly deliverable.

Okay, thank you.

Um and then I just wanted to discuss I found one of the uh items on exhibit one, page 17 of 27 very interesting.

This was under the section comparative evaluation matrix.

Um I understand that the direct construction costs could change for everybody based on what we as a city we can set a budget, we can set stuff once we pu choose a partner.

Um that will affect obviously construction costs if we determine a certain budget.

But I I'm not so sure about the other categories there.

I thought it was fascinating when I looked at the indirect soft cost, the overhead administrative cost, and and the contingency.

Those numbers just vary wildly uh among the four presenters.

I didn't know if you could address that.

Um I'm wondering, you did have a very low contingency.

Is that realistic in today's I mean I know we can end up coming back with you know change order, change order, change order.

But uh I'm wondering about those numbers.

If you could just address the contingency, the overhead administrative cost and the indirect soft costs.

Uh yes, uh absolutely so I I don't have those numbers in front of me.

Um but uh a couple of things I will say.

Um in terms of the overheads and the direct costs.

Clearly we are we're embedded here in the city.

We already have um overhead in place, significant having done uh a large number of projects.

So we have a certain aspect of efficiency there that can come in.

Uh on the contingency, I'll let my colleague John provide more eloquent answers than I could, but what I would say is we have a longer uh interim agreement uh phase in our structure, which allows us to really design out a lot of those contingency and go through the buyout process with the GMP, with the uh subcontractors, which helps to minimize that.

And the other point you said about change order after change order, and for clarity, I think this is the same across all bidders.

Once we hit financial close, uh that's on us.

That's if we blow through that, that that comes up that that's our risk.

That's not a risk that we pass back to you.

But John, do you want to give uh a slightly more eloquent answer?

Uh yes.

So the percentage that you see on contingency were we took that as a response to what we would carry as far as a construction contingency when we get to that GMP, that financial close.

So that's why you're seeing that range between one and a half to two percent is what we would carry.

Not necessarily maybe others had seen it as carrying it a little bit further, but that's how we responded to it that we think is responsible for a construction contingency at that GMP.

Okay.

Thank you for that.

I appreciate that.

Thank you, Mayor.

I'm good.

Okay.

Commissioner uh Sorensen.

Thanks, Mayor.

Thanks, Mark and team.

Um couple questions.

One what specific sustainability measures like energy, water, lead certification, so forth are included in this price point.

Uh so we I do not believe we've included any specific Kobe's nodding, so I'll let him answer in a second.

Um I don't believe we've discussed specific thresholds in the pricing.

Um that is something which we're happy to explore with you.

We have a lot of experience of leave gold, uh, we even have lead platinum uh projects in our uh in our portfolio.

Um but that does come with a price, right?

If you want to achieve lead platinum, there are extra costs that come in.

However, if you do that, there are also benefits that can come as well.

So if you get a lead if you structure this as a lead platinum project, you can make the bond a green bond, and that can in reduce the yield on the bond.

So there's a little bit of give and take.

Uh but Kobe, do you want to speak?

That's fine.

Oh, right, okay.

Um great.

So that would most likely escalate the price.

Um from where we where we are right now.

If it if you I mean if you ch I mean honestly, so lead silver, candidly, it's new construction.

I think it would definitely be lead silver.

Lead gold, there might be a slight increase.

I I don't want to get over my skis and misinform anyone.

Lead platinum, yes, that would that would definitely have an incremental cost, definitely.

Well, and you answered a little bit of this just earlier with the Commissioner, but why why do you think you're able to have the lowest per square footage price out of the others?

So I think I think there's a couple of things.

So one, I mean you you saw our design.

Our design is fundamentally quite simple, and that's not a knock on code because I think it's beautiful, but it is it is fundamentally it has been designed with being cost efficient in mind.

Um we haven't we purposefully haven't gone down the route of trying to design um like a truly one of a kind global hundred foot iconic tower.

Because we didn't think that was um uh the task being set.

Now, for clarity, clearly we can be flexible in the design going forward, we're not wedded to anything, we want to deliver what you want.

And for clarity, that's the same as our competitors as well.

Everyone's in the same boat.

Where I think we do have the benefit though, is as I said, we're local and we're embedded here today.

We have the overhead here today working on large projects, we understand the sub market.

I would hasten to say we we understand that better than anyone else.

Uh that conveys genuine cost benefits.

Also, when you're looking at a P3 with this, it's not just the construction cost, and that is so important.

It's the long-term life cycle cost.

We have the market leader barn with Johnson controls.

It's not even close.

Um they get involved at the outset and they design out cost.

So they design this in such a way that over 30 years, not construction, but in 30 years, you're designing out the cost and you're you're reflecting that in what you get here.

And that's where we end up with uh with a lower cost.

The other piece as well is we're vertically integrated.

So we don't have to fully staff up an SPV and then fully staff up construction.

John and I work very closely.

We can be very efficient from a human resource side of things as well.

So I hope that gives you a lot of things.

Yeah, that helps, thanks.

John, do you have anything to add to that?

That's good.

Um how about and uh this is brought up earlier, but uh and I might be seeing if I'm getting the terminology right on this design or professional negligence with municipal projects, OSHA violations, anything there?

Um not from the development side, uh I'm seeing no on all.

Yep.

Yeah.

Okay, great.

Thank you.

And lastly, the so when we go from interim agreement to comprehensive agreement, that that duration of the interim agreement, I think it's a little over a year, I think, in your model.

Is and I heard you mention a little bit of the advantage for that.

Is there any uh disadvantage to being that longer of a period?

Or put another way, is there an advantage to moving the interim agreement faster to getting to comprehensive agreement?

Um the only advantage that can come, if you if you compress the interim agreement phase, then the the the what happens with that is you have the potential for prices to move.

Sorry, excuse me.

If you compress it, uh design is going to be far less advanced.

So you're gonna need far more contingency built into your price.

Because when you when you hit your GMP at that point, you've got much less advanced costs.

So you need to price it, price the GMP and then go through, and as you finalize design, things can move up and down.

So you have to put risk in there.

But if you're bringing it forward, what you are getting some advantage of there is your construction colleagues will buy out the subs.

Like very they'll buy the majority of the subs kind of at close, right?

When the design gets there.

So by bringing it forward, you're bringing the buyout of the subs a little bit forward.

So you're also crystallizing some aspects a bit sooner as well.

So there's a little bit of a give and take.

John, I don't know if you've got any other thoughts or comments on that.

No, that's that's correct.

So when we look at when you look at escalation or price increases or other things like that, the sooner in our model we want to sign up subcontractors to get there sooner.

So you do that, you you negate that risk.

But where the added risk is back to the perhaps with the drawings not being where they are, we have to implement a new higher contingency.

Okay.

And then great, that helps.

And then lastly, with that with the model with a longer interim agreement, obviously we we you can't guarantee anything now.

We don't know what the what the future holds.

But how confident are you on uh maintaining a similar price point as you're proposing today with what it would be when we get to the comprehensive agreement?

Well, I'll I'll let I'll let all of the various specialists speak to that on the financing side, uh, in terms of in terms of the structure, uh in terms of the required cost of equity and stuff like that.

Very confident on the underlying base rate, that's that can move, and that can move down and it can move up.

That that is a question mark.

On construction, John?

No, we do feel confident.

So we feel confident in the fact that the number that we have put forward based on the square footage that we are confident that we can build that product.

Now, we've also assigned a great design team that can also work within the budgets, and we're designing too.

So we have a lot of experience in designing to a budget, and really that's what that interim agreement's about, and we can absolutely drive to a budget if that is what the number that we want to stay at.

Okay, great.

Thank you.

And Don, are you confident in the FM number?

Oh, well, we've got a working model just down the street.

Sorry.

Sorry, sorry.

We've got a working model just down the street, so we've got a really good idea of what it costs to run these facilities.

We feel very comfortable with it.

That's the last test that we did was doing a comparable on my day.

Great.

Thank you.

Thanks, Mark.

Thanks, Mayor.

So just to follow up on the follow-up on that.

So the the term availability payment, um explain to the public and to the commission what exactly does that mean.

Absolutely.

So what that means is um through design and construction, the city doesn't pay anything to us.

Now, it was mentioned about you may want to pay milestones to lower to lower the um the cost going forward.

That's an option, but at its core, you don't have to pay anything.

Once the asset is completed and is available.

Would you turn the key over to us?

Exactly.

Once it's once it's completed and it is available for use, right?

Then you pay us an availability payment for the course of the concession, and we've assumed 30 years post-construction completion.

Um there are many different ways to structure So just to finish with your your thought.

So the availability payment is a per year payment that the city writes a check to you for 30 years.

Yes.

And that's for the use as well as the maintenance and operation of the building.

That's correct.

So if in the comprehensive agreement that we structure with you, there will be certain thresholds that we need to achieve.

So as an example, you may have if one of the light bulbs goes out in in one of the offices and you report it on the hotline, the light bulb's gone out.

If we don't come and replace it within three, I'm making numbers up now, but within three hours, we may suffer a five thousand dollar deduction as an example.

But it's uh but I mean, just to get to the point though, but uh availability payment means a yearly payment that the city must pay to you to pay for the use and operation of the city hall building.

And at the end of 30 years, what?

At the end of 30 years, the asset is handed back to the city.

So importantly, through that period, the city owns the asset, the city owns the underlying land, but we have a contractual right to receive the availability payment to you.

For the 30 years.

For the 30 years.

And what happens at the end of 30 years?

As we come close to that 30-year period, there are contractual requirements in the contract that lay out for certain building uh functions and building aspects, there needs to be a residual life in there.

So it might be, I'm not but it might be the roof may need to have at least 10 years residual life as an example.

But it's all the responsibility of the city after that, correct?

Afterwards, but importantly, as you come to that 30 years, we have to get an independent third-party um uh advisor to come in and assess the residual life on the roof.

If the residual if if they come in in year 25 and they say, you know what, this is the roof from day one, uh, there's not a chance in heck that it's going to actually have 10 years residual life at year 30.

Then there's also a contractual provision that says that we then need to put money in to replace that roof at that point.

It's going to stay shiny in you for thirty years and be handed back with residual life.

And we put off finances behind that to guarantee that.

Okay, thank you so much, folks.

Thank you for your patience.

So uh we have our next presenter, and these are hold on a second.

And this is uh Fort Lauderdale Civic Partners, correct?

How are you?

Good, thank you.

Nice to see you.

So let me set the clock.

Thank you.

Okay.

Thank you very much, Mayor, uh, members of the commission.

Uh, we appreciate you uh giving us the time today.

Uh on May fifteenth, we came into uh City Hall and submitted an unsolicited proposal.

Uh we got the ball rolling.

And we got the ball rolling, but you, in the wisdom of this commission and the mayor, decided to escalate that.

We took from a hundred and twenty days, went down to sixty days, and Mayor, at the time you said, I want a decision in December, and here we are.

So we're uh we're very proud to be here today, and uh, because we believe that we have a team that will hit this project out of the park.

So I represent the Miami Tunnel.

I also represent the first public private partnership ever done in the state of Florida.

And not only a public-private partnership, but a public-private partnership that has been used for a model.

So we're all about community, and we're all about delivering the service.

But today I have the opportunity to have with me the on time on budget team.

That's what we're all about.

So when uh I found out that uh we were moving forward, I said, you know what?

Let's put together the best team.

So I went out and I looked at those that I've dealt with in the past, and those that have delivered a project, both for the public and private industry on time and on budget, because that's what we were about.

And so we were able to do that.

We were able to look at Suffolk and uh and what they've done, not only in the whole state of Florida, but right here in Fort Lauderdale, building iconic uh uh buildings, but also uh doing that on time and on budget.

So we put together a great team, and uh we like to go to a little video that tell you a little bit about us.

We know Florida for its vibrant culture, it's sense of community, and the incredible vision of the people who live work and play here.

Bottom line.

It's a place we're proud to build.

It's because Florida has helped build us.

It taught us curiosity, creativity, great, and a commitment to something larger than yourself.

That's what drives us to raise these structures to the sky.

Here in Florida, we built some of the most iconic complex and impactful buildings in the country.

Places to live, learn, travel.

It's all here.

This is our home.

This is where we build.

And when we all come together, anything is possible.

There was one point in time in the early 2000s that within uh seven or eight block radius, there were ten Suffolk Tower cranes in downtown Fort Lauderdale.

My name is Thierry Du and I'm the founder and CEO of Meridian.

I founded Meridian about 20 years ago.

And really, Meridian is a big hope.

Uh it's really focused on sustainability and building infrastructure for people and the planet, and that's really our motto.

And you couldn't have a nicer structure to be the sort of the entryway to the west side of Long Beach is terrific.

In Miami, we've been successful in reaching out to the community to really create these jobs, local content and local employment to make sure that there is social cohesion in the community.

Hi, my name's Chris Hodgkins.

I'm the CEO of the Miami Tunnel.

We hired over 7,000 people in non-direct employees, contractors, vendors, over 7,000 people.

83% of those folks were from Miami Dade County.

Meridian infrastructure and the entire tunnel team have made the part of Miami Tunnel Project a huge success.

Meridian and the entire tunnel team are a true example of what a P3 should be.

We've enjoyed working with Chris Hodgkins for his community outreach and operational excellence.

What we began on the Miami Tunnel was going to be the model for what we do in the future.

We're going to include the community, and we're going to create another major infrastructure project that looks at sustainability, resiliency, and is a true and good partner to the community.

Thanks.

To do all of this, we need a team.

And I helped assemble that team, and uh it was a very difficult process.

But this is how difficult it was.

I called up Jeff Geneva from Suffolk.

I called him in the morning by 11 in the afternoon by the eleven in the morning.

We met at a Starbucks here in town.

By two in the afternoon, he gave a commitment that we're gonna partner.

And uh because we've worked together in the past.

In fact, everybody put in that coffee.

Yeah.

I'm I'm yeah, yeah.

Can you share it?

Yeah.

And uh the the nice thing about all of this is everybody behind me that's part of this team, we have worked together.

We've delivered together.

There's not going to be any getting to know you time.

We're ready, we're mobilized, and we've got a team ready to go.

So when we looked at uh doing working with Suffolk, then we looked at uh uh Bernard to uh work with Bernard, not only because of all the greatness he's done as an architect in South Florida and around the world, but because he's worked with all of you.

He goes back a long way in finding out about what the desires were uh for the Fort Lauderdale City Hall and working with you.

We put together uh great people on the team.

We put together Keith Engineering, Dodie's here with us today, as well as Greg.

And the thing is is why Keith?

Well, we worked with Keith on the tunnel.

They did geotechnical concerns for us, they also did resiliency concerns, just as Keith has done for you in this city.

We've also uh worked with uh ABM, who's our operations lead.

Uh what we're all about is not only about building on time and budget, but also about operational excellence and continuous improvement, because we hope to run this City Hall to hand it back to you in 30 years.

Operational excellence and continuous improvement.

And ABM has 333 buildings that they run here in Florida.

So we're excited about this team, and we're also excited because we uh had to watch a video of Marilyn from the task force, the infrastructure task force, when she delivered it to you about everything that they wanted to see in City Hall.

So we took that video and we put that into action.

But to put it into action, we also bought brought in Cheryl Dickey from Dicky Consulting, because we believe one of the most instrumental things is communication, stakeholder outreach, local hire, and making sure that we work for you.

So that's what we're all about, and we're excited to be here today.

One thing we're particularly excited about is Could you please introduce yourself?

McKenzie Welch with Meridium.

Thank you.

Uh one thing we're particularly excited about is being a long-term partner for Fort Lauderdale.

As Chris has mentioned, we have a demonstrated track record of delivering on time and on budget.

As a team together, we have delivered 6.5 billion dollars together over the last 30 years.

I'm now going to turn to Bernarn to talk about our beautiful design.

Thank you, McKenzie.

This is uh Bernard Zaskovich, so happy to be back here.

And Bernard, before you leave today, could you please uh see the lady in the front desk and sign up because I don't have a slip for you.

Oh, okay.

And they have to swear you in and all that.

Okay.

You want to swear him in now?

You can't.

It's not a it's not okay.

All right.

All right, never mind.

Thank you.

Sorry.

Well, when Chris started talking about uh his unsolicited, uh it reminded me that we actually started this in 2020 with you during the joint government center.

We spent two years interviewing literally all of your department heads, uh, 18 departments, 647 employees.

Uh we understand more about you, maybe than you might understand yourself.

Um but the the point is that we went through um a very rigorous process that we want to be able to leverage right away.

And and we're here to tell you that not only do we have all that interview information and your your structural organizational issues, but we have stacking plans, we know everybody that needs to work with everybody else.

So we have a very big head start.

Uh but the most important thing is that we learned is how do we fit in with making sure that we accomplish all the objectives?

Because the truth is the building is just an environment for the activities to happen in.

The most important thing are the people.

So we're we're looking at a people-to-people approach, uh, where the people are the first things that we think about.

Uh and in those interviews, I got to tell you, we heard a lot about all the good things about Fort Lauderdale, but we had personal experience and understanding what doesn't work in the building, the inefficiencies in operation, and the most uh common theme was wellness.

Your staff wants wellness.

They want to be able to make sure that the air is going to be repeating often that they have fresh air, that the uses that come from uh women who just had uh babies, that there's lactation areas, powder room areas, that we have places where people can go and gather, and this is a fundamental part of what you are actually looking at on the screen, although without the detail we can't give it to you.

Uh the another thing is the inclusivity that we heard from all the great work that Cheryl did, because she did the the the um Fort Lauderdale City study that you spoke about, reimagining City Hall, we did all of the legwork regarding what you need and what your aspirations are.

So the inclusivity is really significant, and all of our spaces in the building are actually very much oriented toward making it easy to find those little places where people can gather and making sure that all of the office plates and the efficiencies are there.

And then finally, um we've been thinking a lot about iconic because I know this has been on everyone's mind.

And um I've been looking at that from a different point of view, which is the buildings that people love tend to be iconic.

It's not the whiz bank thing, it's not the fashion statement that gets old in a few years.

It's actually the places that reflect the community.

And we have to tell you that Fort Lauderdale has its own international reputation.

My feeling about it is that when I look out and I see the weather, the boating industry, your marine industry, you are known throughout the world as an important city that has a kind of laid-back vibe.

And we think that this is really reflected in our building.

The building takes advantage of Coral Rock, which is a historical reference to the old Florida and to the building that you had before.

It has floor to ceiling glass, but not too much.

You don't want the sun baking all of the spaces.

You want to have resiliency that really addresses all the issues.

So what does that mean?

I imagine myself being the architect of your building that flooded.

And I was thinking to myself, no way that guy could have anticipated that.

But what we're thinking about is what is gonna happen that is unexpected.

So we've built that into the project.

We intend to raise the elevation beyond the FEMA code.

We intend to have more fresh air than is required.

We intend to set you up as a net zero capable building, because you probably don't have the budget to be net zero right away.

But we've just finished major work with school boards around the state, where we've set those buildings up so that when PV becomes affordable, all it takes is uh is uh change in the in the direction, and now it's a net zero building.

So um, in conclusion, what what I wanted to talk about was what makes the building successful.

I think that that it's attainable, that it looks like it can actually be accomplished in the time frame that you want, that it's gonna be a beautiful building that people love and therefore will be something that's admired everywhere, and then finally that it's affordable and that we can actually complete the work.

So we're ready to go.

Thank you.

All right, thank you.

All right, Nick Phillips with Meridian.

So, as Bernard mentioned, our our design reflects the community needs not only for Fort Lauderdale today, but also for the future.

But the real question is how we move this from a lovely video and a presentation to reality on time, on schedule, to cost effectively serve the community at a at a high level for generations to come.

And just wanted to pause here talking about the various structures.

You know, we appreciated the uh the presentation from PFM.

There was a note that our team wasn't entirely flexible to their proposed structure.

Um that's not true.

We are very open to working with the city on how best to manage costs.

We did say we were inflexible to a DBF.

Anything to us it divorces the ONM in the long-term aspect of the asset from the developer, creates an inefficiency that we don't think is ultimately the best.

But in terms of using the the city's balance sheet and leveraging their triple A capacity and making sure that the developer does the OM and still has some skin in the game as proposed, we're happy to have that discussion and support whatever's best for the city because ultimately we're trying to look, we're here to drive best outcomes for the city.

Um, along those lines, our team has delivered numerous major major civic infrastructure projects for clients, both here in South Florida and across the country.

Um talking a little bit about what we just said, you know, in contrast to something like a DBF or a DB, an alignment of the developer and the government that ensures that the project's delivered with its long-term future in front of mind that we think is crucial.

Um, nobody wants an iconic building that opens but doesn't work five years later.

Um, that does no good for anybody.

Um, in a DBFOM or a DBFOM like structure, as proposed by uh PFM, you know, there's a single point of responsibility for the government interface, not only just to throw to choke when things go wrong, but also this is over 30 years.

So as Fort Lauderdale grows and expands and its needs changes, it needs to feel comfortable working with the developer to adapt that building to what what it needs to be ultimately in 30 years.

Because if you know, and one example is Bernard's uh net zero capability, but others are things that we can't foresee.

Um our proposal provides you guys cost and schedule certainty, and our team has a perfect track record of being on time and on budget.

Um, one of the things that was mentioned uh by PFM and we agree with is risk transfer is often underappreciated in these um type of procurements.

Uh, ultimately, this is an infrastructure project that needs to serve Fort Lauderdale now and in its future.

Um, and I think as stated in the review of all the uh proposals, our team stood out with its most rigorous operational and life cycle guarantees.

Um after 30 years, the city will still have a like new building that can support the community and its growth and its neighbors.

Um Meridian, we're a long-term partner with the municipal partners, and we're excited to work with the city over the next three decades, unlike other teams, not necessarily in this project, they're everywhere.

We're not contractor led.

Um, we're here for the long term.

Meridian's been in every asset that it's ever invested in.

And we're not here to sell after completion or leave after completion.

We're here for the long term.

As we talked about briefly, risk transfer is a crucial benefit to the city.

Um and it's main job is to allocate the risk to the parties that can best manage it.

Over 30 years, things are going to happen.

We all know that.

I mean, you guys know that better than anybody else.

Um and our team will be responsible for ensuring smooth high-level operations.

HVAC system breaks before anybody expects it, that's our responsibility.

Elevators go out, any new elevators, that's our responsibility.

The city only retains risks that it should that can handle and mitigate the best, and it allows this commission and the city manager's office to focus on what it does best, which is ultimately serve the needs of its residents and its neighbors.

Okay.

Thank you so much.

McKenzie Welch again with Meridian.

So the result of all of this is risk transfer, lower life cycle costs, increased innovation, and better value for money to serve the residents and neighbors of Fort Lauderdale.

Our availability payment, which is one of the lowest of all of the proposers, includes costs like design costs, construction costs, 30 years of operations and maintenance, key life cycle costs, and very strict handback requirements.

As you heard from Nick, PFM identified our proposal as having the strictest life cycle and handback requirements of all proposals.

All of those costs are included with one affordable availability payment that is 11.7 million and 13.5 million cheaper and more affordable than the next two proposals.

That means that this is a proposal that includes costs and takes risks off of the city's balance sheet.

There won't be surprises, there won't be deferred maintenance, and there won't be emergency appropriations in year five, ten, or fifteen.

Our approach is fully deliverable, and importantly, this is a realistic proposal.

We've designed for Fort Lauderdale, we've designed to be affordable, we've also designed to be a key community space.

Importantly, we aren't a contractor who are gonna hand you the keys after delivery and walk away.

We're a long-term partner that's going to be here to help in year one, 15 or 30.

And so we don't just talk about performance, we actually demonstrate it.

Meridian has developed some of the most landmark P3s in the United States, here in Florida and around the country.

And as a B corporation, our purpose is fundamentally different from a contractor team.

We're the only firm here that is a B corporation or a benefit for all corporation, where we are independently certified and accountable to meet high standards of environmental and social performance.

If you look at this screen, you can see some of our key assets.

If you look at Long Beach Courthouse in this photo, just this year, after 13 years of operation, an external auditor rated it in like new conditions.

And that's what strong building standards, a strong maintenance program, and 30 years of accountability looks like in practice.

So you'll see many billions on the slide.

At our core, we're trying to say that we are offering Fort Lauderdale financial and operational strength with three major companies.

They're committed to develop this project well, to build it safely, and to manage it sustainably and affordably for 30 years.

Meridium has built 135 P3 projects and is sitting on 1.23 billion dollars ready to go for this project.

Suffolk has one billion in single project bonding capacity and is ready to go to build this.

ABM coordinates billions of square feet daily, including hundreds of clients in Florida alone.

Fort Lauderdale deserves a partner with the strength to deliver the city hall and stand behind it for decades.

Now I'm going to turn to the man behind the building.

Hi, uh Jeff Gobea from Suffolk.

Um safety is not aspirational.

It's stay it's table stakes for the way we do business.

Um I oversee uh our our as the president of the company, I oversee our safety operation.

Uh we have some metrics up here that are um half of the industry average uh when it comes to overall safety.

Public safety is the most important thing.

Uh there was a question that had been asked earlier about um uh the OSHA citations uh not being um listed.

Uh in the state of Florida, uh, we have zero OSHA citations in the last five years.

Um the men and women who build this project, them going home every day is the most important to me thing to me as the president of the company.

Um time and on budget, there's been some a lot of discussion here about this.

Uh I've got a couple of uh very real examples.

Um the uh Hard Rock uh hotel, um, the guitar tower.

We uh when we were when we were finalizing uh our last presentation, um we were asked to step, we were asked to step outside, and a little while later they asked us to step back in uh and they said to us that you we know you're still under uh an NDA.

Um but and so we want to tell you a couple things.

Uh the uh the Miami the Super Bowl, the 2020 Super Bowl is coming to a stadium that will be renamed Hard Rock Stadium.

Uh this is back in 2015.

Um the um this hotel must open on October 24th of 2000 uh 20 uh 19, or you or you may not be late because the 2020 Super Bowl relies upon you finishing this.

Um the Royal Caribbean's uh um new cruise terminal.

Um when we were finishing our contract negotiation, uh the gentleman who builds their ships came in and said that this ship is being built in the in France, it's the largest cruise ship in the world at the time.

It was the Symphony of the Seas.

Um, and they had said to us that uh it when it sails from the Mediterranean, if this project is not finished, uh we have nowhere to put the boat.

And so and so we finished on time in November 2018, the project the the boat came in and uh and and we finished uh on time and on budget there.

Um mitigation and construction risk, uh something that's very important um in the overall uh on the overall project.

This project gets won and lost in pre-construction, right?

And in our in in our digital engineering and our technical validation of the of the design in the early, early stages of of the project are very, very critical to making sure that the project gets started and finishes without a lot of RFIs and with a lot of without a lot of issues.

So there are multiple uh hurdles that we try to jump early on in the process, and that tends to give us a a more clean delivery process overall.

Um on the on the schedule.

So overall we had a um we had a 28-month construction schedule, 38 months overall.

Um the temporary certificate of occupancy, we felt that it was very important to have this group of commissioners cut the ribbon on the council chambers.

We felt like that was very, very important.

And so the way that we have structured our schedule was that we would TCO the council chambers in the in in um November of 2028, and we would finish the TCO in 2000 in uh February of 2029.

And we felt that was very, very important given the amount of um energy and effort that you've put into this.

Fort Lauderdale, very near and c very near and dear to my heart.

Um we uh we're actually in a in a in a great uh spot to to see some of the things that we've been involved in.

Um we built uh behind us the Symphony, right behind us here, uh Esplanade on the New River, uh Las Olas River House, which is still my favorite project that we've built overall.

Um that by the way, when we finished that project, it was the tallest building from North Miami to to New York City uh back in the day.

Residential building, correct, yes.

It's been it's been surpassed several times by now.

We also did um uh New River Village and we did the Waverly Las Olas.

Um and so we we're in and it is it is very near and dear uh to me personally.

Um the City of Fort Lauderdale has been very good to us as a company.

Now I'm gonna hand it over to Cheryl.

Thank you.

I have no slides.

As you all well know, Dickie Consulting Service had the privilege of working with the infrastructure task force and your staff to help with reimagine City Hall with the community.

Great community engagement.

We will continue that with having meetings throughout the districts in the community, have a website that we would have up for interaction and be able to get comments back from people as they look at what we're doing during design.

We want you to know that we are the team that can you can trust and that will work for you because we're part of you.

So I'll turn it over to Dodie at this time.

Hi, good afternoon, Dodie Keith.

Wow, what a legacy opportunity stands before you.

All the revisioning you've done for this city, for our city, and all the work you've done and and the successes we've had.

It's out of the tragedy of Great Storms.

Um we have an opportunity to have this beautiful facility come out before us.

We do think with Bernard and Zaskovich team and his personal commitment to this project, that it's not going to look anything but Fort Lauderdale.

It's going to be unique with that with the the stone and the coral and the things that we bring to it really make it different.

But what's also important is cost is important.

And when you're looking at teams here, and you know, I'm not the great finance here of the of the world, we're just engineers.

But when I look at some of the teams talking to you today, that are going to cost 12 to 13 million dollars more annually for 30 years.

That's three to four hundred million dollars for the building that does the same function.

So we hope that we've brought you not just a design that's beautiful that's exciting for this city that all of us can be proud of, but something that functions in the way your staff and your team and you need in generations to come for 30 years, but we also are doing it affordably.

And we're doing it in a timeline that we can deliver.

And I'm really proud to stand here with Meridian and Suffolk and all these folks that I've worked with for most of my career.

That we have we've every project to a lot of people say on time and on budget.

I'm talking no major change orders.

I'm talking really hitting the timelines that are in our presentation without excuses, because we find the solution and we find the recovery schedule.

When something gets off, you find your way to correct, you don't find excuses.

So I ask you to please consider us as your choice for this facility.

You won't be disappointed.

And the partners that have chose us and worked with us over the years, we'll we'll talk highly of us that are very proud.

So we're happy to answer any questions, but really it's a whole package.

It's the financing, it's the beauty, it's the functionality, and we hope we're the team that you can trust to be your partners to move forward.

Okay.

Great.

Is there anyone else on your team that wishes to speak?

I want to add that we're going to actually be using local um uh folks here.

We're gonna employ local people.

We're gonna work with the OIC, with the Urban League, and with Hispanic Unity and the Black Chamber of Commerce from who we have a memorandum of understanding, and um we will make sure we're having job uh retention and job fares for all of the people, not only the small businesses, but also actual employment opportunities as well.

Okay, great.

All right, very good.

So that concludes the 30 minutes of presentation.

So now we'll open up to questions from the commission.

Vice Mayor, do you have any questions?

Okay.

Um Commissioner Beasley Pittman.

Um the question I have is about the employment um piece.

Um do you have a um percentage of local employment that you're going to um benchmark or aim for?

Yes, what we did in Miami uh uh Commissioner, is we used our local demographics, right?

That was our model, and we wanted to mirror that.

For example, in Miami, we did uh we did 51 percent Hispanic, 28 percent black, 11 percent Anglo.

Uh we put women in positions of uh of management and supervisory roles, but it was the first time in a project, a public project in Miami Dade County, that our demographics mirrored that of the community.

And uh it was easy.

You can't pick people by the color of their skin, but you can pick them by their zip codes.

You can make sure that the community is broadly represented.

Um and we did a lot of things to make sure that the community was involved, and we sought that out constantly.

One of the things uh, for example, that we've done here is uh we continue to work with uh Lyuna local uh 1562.

As a matter of fact, I gave the uh clerk a letter that uh we like to give all of you uh both the uh both the uh the president and the business agent of local 15 uh 62 um have signed a letter that their most successful project that Layuna ever had was uh at the Miami Tunnel.

When you look at the video that we had and we showed you people, thousands of folks worked on that project.

But what we are able to do is do job training programs to look ahead, help train folks to get in those positions, and uh it was a great opportunity to make sure that we look hired what we call local labor initiatives.

We're very proud of it.

And we won awards for it.

Do you have any other questions?

Um that's all.

Okay, Commissioner Glassman.

Yes, thank you.

Um and as I'm gonna say to every single team, it's so very impressive, and thank you for your work.

Uh this is a tough one.

Um thank you for stepping up first and getting this process kicked off and uh what an incredibly talented team.

So thank you for all of your work.

It's really greatly appreciated.

Um could you just go back to the slide that showed your I think it said key assumptions on the top.

There you go.

So let me ask you a question.

Again, I am not an expert in this field at all when it comes to the financing.

But the 13.5% post tax um for the equity.

That that seems really high for an IRR.

Is am I missing something here?

Is that is that a realistic number for that um internal rate of return?

Well, I mean, I think if you look at this, we wanted this to be a realistic and actionable project.

On the same time, we did not have an actual risk uh we didn't have a contract to judge it up on.

So we view this as this is the highest, not the highest, but this was the upper end, and we can push down as we discuss what the risk transfer looks like.

I mean, you've seen the other one, so I mean I'm not giving any public knowledge.

I mean, but I think if you look 11 to 13 is roughly the range of a of a market level transaction, but it all does depend on the details.

Um so you know, we're happy to get into the CDA process.

We have a lot of uh history and experience doing CDAs with municipalities and finding out exactly what's works best and creating what's the most optimal situation.

But to us, this isn't necessarily a line in the sand, but this is what based off the information we have.

This is the assumption that we have to do.

Okay, and thank you for that.

Um just want to ask you a question about the availability payments, um, because that seemed to be a very key point in all of our consultants' reports and evaluations.

Um yours is a little bit different than the others.

All of the others seem to be pretty consistent.

The payments seem to be the same.

Yours seems to escalate, I think at 2.5%.

Why that approach versus the approach of the others that it's pretty much a consistent, and I look at it almost like as a mortgage payment that you just sort of have to know that you're gonna be responsible for.

But why does yours start lower and then escalate?

So ultimately we've done availability projects in bull styles, and I would say we're relatively agnostic.

But what we found in kind of more recent discussions with municipalities is typically uh I mean, if you don't escalate, that means your year one payment's gonna be higher.

Right?

So I mean if there's more short-term budget and there's longer term projection, eventually you're allowing inflation to do some of the lift for you guys as you look over 30 years, as opposed to basically taking 30 years of inflation and sticking it into year one and calling it flat.

Um so I mean ultimately it's up to a city to decide what their preferred method is.

Ultimately, we can be flexible on that.

Um, but we find it works best for budgeting purposes, for long-term growth purposes, that kind of the payment grows with the growth of the city.

Okay.

I I I understand.

Uh thank you very much for that.

And again, thank you, all of you.

Really greatly appreciated.

Thank you.

Thank you, Mayor.

All right, Commissioner Sorensen.

Thanks, Mayor.

Thank you all.

Appreciate the time and being here.

Um so just a couple few questions here.

So if I'm understanding right, you're open to DBFOM, just not DBF.

Correct.

Okay.

Great.

Um so in again understand right, open to full city financing.

Uh yes, I mean, as presented by PFM with the the city providing the debt structure, the I think the two imperatives we view is that there's a long-term alignment that the ONM needs to be considered by the developer, and that the developer should have some equity skin in the game.

So I mean the 10% and the O and M, be it above or below the line, fine.

But I mean I think those two are key to we as a team think those are crucial to a successful project delivery.

Okay, great.

Um the if I understood right, the net zero capability is included in the cost structure.

Very great.

Um what lead status is included in the cost structure.

We've been looking at lead go, but we're really more interested in well certification.

Okay.

So we're gonna be working toward the well certification as I think the primary goal.

Because that's the one that actually affects the health in the building and the wellness of the employees.

Does well certification include things like you know water efficiency, um, so forth?

Oh, yeah, we're gonna, you know, first of all, most of the lead uh requirements are now built into the building code anyway.

There it's really not much of a lift anymore, lead.

The the well certification is is the coming certification, because it deals with toxicity, the the overall health and wellness of of the building um and and long-term uh maintenance and operation, which we feel very comfortable with this group, not so much necessarily with all our clients, because if you sell the building, it depends on somebody else to finish that.

But uh there's been proven scientific results of increased efficiency and productivity when you have more air exchanges in a building.

And that's built into the project.

Okay.

Thank you.

And then could you go to the timeline slide, which had the um yeah, this one.

So what's your I might be messing out on this?

The expected duration of the interim agreement period.

Uh seven months from selection.

Seven months.

Okay.

So seven months post-selection, then comprehensive agreement would be solidified, or when would the comprehensive this co-development phase in the boxes here?

The first box is functionally in what we would call financial close or everything's locked in, signed, delivered, and then Jeff and his team get it going to early works in August of 26.

Um kind of in parallel during the co-development phase, they'd be advancing the design to 60%, so they are ready to go.

So kind of two things happening in parallel, the advancement of the design and the advancement of the contract, kind of all meeting together at July 26th.

And again, if the city is providing the financing, maybe there's some time to shorten that, but this kind of assumed that there was a full market financing process within that time period.

Okay, great.

Thanks.

And then for sharing on the OSHA stats, which is great.

Any design or professional negligence with pro municipal projects to be aware of?

Okay.

Great.

Thank you, Mayor.

Okay.

Um just to uh follow up on Commissioner Glassman's question.

Can you explain to the community and the commission the milestone payment uh program?

So is that a one-time payment at a certain point in time during the construction?

How does that work the milestone payment is to cover the design fees during the interim agreement and prep for the building?

Currently that cost is rolled into the availability payment, but there's also the option to take it out as an interim payment.

So is the 12 million already rolled into the 22.5 million, or is that still a separate cost?

Currently it's rolled in, but deferring on what the city would like to do, it can be separated or not.

All right, so is the 22 point two million availability payment, is that constant for the 30 years?

That's subject to the escalation.

So it's not constant.

No.

So it can go up.

Yes, there's an escal.

So the so the cost of the building could go up.

No, it's subject to a fixed fixed escalation amount.

So how we have it structures, it goes by 2.5%.

So the the actual number is fixed, it's just not fixed at the same number.

It's functionally 22.2 million dollars in 2025.

I understand that.

But I mean um so the total cost is still going to be 257 million.

It's not going to be it.

That's not it's not your c total cost here is 257 million.

But you're saying that the availability payment could go up.

No, it it it's still a fixed line.

There's a defined escalation mechanism.

Why?

Well, so this goes back to the question asked by the question.

I know, that's why I want to follow up on that.

So again, we're fine saying that it's a fixed payment.

We we can change the structure.

Ultimately, what we found the preference of municipalities and government entities lately is to reduce the year one payment to allow this to grow by CPI or as you know, a fixed escalation amount, so that future years less short-term budget constraints than otherwise.

Ultimately, this is a decision that we leave to the city to decide which they prefer.

Well, the reason why I bring this up is we're trying to compare apples to apples, and we're trying to see what the availability payment is going to be to the city uh from each uh applicant here.

And you know, you know, it's like it's like years ago when there were teaser rates for mortgages, you know, you get in at 3%, and then in two years it goes to 5%.

Okay.

So we don't want to be in that situation.

We want to know you you said it's you know the first year is going to be less, and then there's an escalation.

I just at some point, I'm gonna say we have to do it now, but at some point we need to we need to see what would be the availability payment if we did not have this escalation program that you recommend because and I don't have to get it from you, I'll get it from our staff, but it's just it's easier to for us to uh compare each applicant and how much the availability payment is going to be expected of us going forward.

Uh that that's a fair exercise.

All right, thank you.

Any other questions for these uh folks?

They're being done.

Um we'll take a five-minute break.

City manager, if you can Oh, she's already gone.

FTL Beacon Collaborative.

Please step forward and introduce yourself before you begin your speech.

Good afternoon.

Good afternoon.

Thanks for having us, everybody.

My name's John Keegan, Senior Vice President with Gilbane Development, representing the lead developer for FTL FTL Beacon Collaborative.

Thank you for having us.

I'm joined today by our team members, Zach Tranti, who's behind me, development director with Gilbane Development, Jason Sizemore, construction principal with Gilbane Building.

Russell Anderson, preconstruction executive with Gilbane Building.

We'll be very concise and hopefully addressing all of the points that you've asked us to hit on.

We welcome questions at the end or throughout, if should you have them.

Whether it's a fully aggregated P3 or a somewhat disaggregated P3, our team members are set up to address everything from lead developer through facilities manager through equity members, through design builder, through lead architect.

Our team qualifications we think really do stand out.

Not only in public-private partnerships in the state of Florida and throughout North America, but also city halls in particular, with 22 of them valued at 2.6 billion.

And in the last 10 years alone, over 200 government and municipal projects valued at 14 billion dollars.

Our team knows P3s, we know facilities of this type, and um we are very comfortable working in this sort of arrangement environment.

I won't hit on all of this, but one thing I do want to point out that that I'm particularly proud of about Gilbain.

Over 75% of Gilbane's work is from repeat clients.

That's born of trust, it's born of performance, so it's born of fulfilling obligations to our clients that compels those clients to come back to a trusted partner to do work again and again and again.

And we greatly value that over our 155-year history.

I'd like to turn it over to Peter Campbell, our partner with Elliston to speak a little bit about ONM services.

Peter.

Thank you.

Hi, Peter Campbell with Ellis Don representing the FTL Beacon Collaborative Operations and Maintenance Team.

We wanted to spend just a few moments today to go over our OM experience and give a flavor of the types of projects and the this capabilities of our team for consideration by the city.

Many of these projects are availability-based with performance metrics and street very stringent performance requirements.

Apologize, I'm losing my place here.

Um we have great experience in public um institutions.

Um of our key risk management strategies is to deploy leading edge fault detection and diagnostics tools in order to identify and fix problems before they manifest to a level where they cause operational disruptions.

Thank you.

Thanks, Pete.

Mr.

Mayor Commissioners, good afternoon.

Zach Tranti, development director of Gilbain Development.

Um, touching a little bit on our project delivery approach here.

I think our overarching goal was to be flexible as it's been noted and to do a comprehensive and thorough analysis of all options.

So noting PFM's recommendation and staff's um concurrence with the DBFOM model.

We have that as our scenario A here.

Um we'll talk a little bit more throughout the presentation about what the numbers look like there.

But you know, taxable debt and equity, and I think the main differentiator our team brings to the table is alignment across all scopes, uh, OM, uh FM, ONM design builder and developer, all as equity members and having skin in the game under that DBO FOM structure.

Talking a little bit on schedule, um, starting you know with an assumed selection of a developer in December, and then kicking off right away into program validation, um, getting started right off the bat, and then ultimately leading to kind of a February 2027 uh closing based on a 50% CDs set.

Uh that would then you know enable us as well to get an early works permit, which is really the basis for what is uh you know an aggressive but achievable uh construction period of 22 months.

So noting the desire to have a delivery uh in 2028, we've tried to tailor this schedule again, aggressive but achievable, to meet that 2028 delivery timeline.

I'm gonna turn it over to Vernaro for the design.

Thank you.

Good afternoon.

Uh I'm Bernardo Four Brescia, I'm a principal of architectonic and one of the founders of the firm.

We've been in business in Florida for now 48 years.

This is our home state and where we practice.

And we have followed the history of our state and our cities very closely.

And um, but I want to begin by some of the guiding principles on buildings.

In 1896, not far back.

Louis Sullivan, one of our great American architects, the first modernist architect, said form follows function.

We know that word, people talk about it.

In 1939, Frank Lloyd Wright, the great American architect said further, form and function should be joined in one spiritual union.

And that is what we're trying to convey to you today.

We want to convey the message of a of government efficiency, a simple orthogonal building for maximum functionality and flexibility for today and for the future.

We want to convey a message of public outreach by expressing the council chambers as the most important expression of democratic values.

And we want to convey sustainable principles.

If you look at our design, the tower is oriented in a manner where the primary source of light is the north light, the good light.

But we also want to talk about sustainability further.

The south side is made of PV glass panels so that we can collect energy, which is the future of our nation and this city.

We also want to provide resiliency.

We have a building that is elevated over the potential water surge and beyond for sea level rise.

So we have a future-proof building.

And we want to provide safety.

We do work for the State Department with many of the government agencies, federal courthouses, and one of the most important aspects is safety.

You will see that our design includes a garage, which is what belongs in a class A office building, anywhere today.

And uh that garage is connected in a private section for the commissioners and leading managers of our city so that they can connect directly into the building safely.

And we provide enough parking for visitors to be and employees to be able to reach the lobby in a secure manner, as well as where they're protected.

And uh, so these are some of the aspects.

What we are gonna see today in our presentation is that this is not a guessing game.

We've done floor plans for every level, for every detail, every passageway, every elevator, every fire stair, everything that you see has been thought out.

It is not just a sketch or an idea, it is a real building.

We draw our buildings from inside out, and we look at the neighborhood, and never mind, it will not it will not be millions later that we discover that we need to do a new design.

We have already priced it as we were designing it.

So with this, I'm gonna take you through the project.

You can see the ground floor, and one of the most important principles of design is that you really shouldn't need signage.

You should find your way around a building easily by logic.

When you look at this arrival from North Andrews Avenue, which we considered a great address to have, you have a drop off for Uber's, you have a plaza that receives you and embraces you.

You find an atrium that is monumental and tall that symbolizes the importance of the functions that occur in this building.

You choose to the right to go to the council chambers, you know exactly where it is.

It's very evident from outside.

You don't have to be told where to go.

And to the left, you take the elevators and you go up to our functional, efficient building that symbolizes the efficiency of government.

You can see the garage next to it.

You can see there's a separate entrance for the leaders of this community to be able to arrive directly to the council chambers or to their own direct elevators to their offices.

And there's a way, if you continue to the next level where the elevators take you down and you arrive directly into that lobby where the security is.

You can choose to go to the building, or you can choose to go to the council chambers.

If we move to the next um image, you can see the double height space, the multiple height space of the grandeur of a lobby that symbolizes the importance of government.

And you can see the beginnings of the building.

If we take you to the upper levels, you can see the garage there, how we manage to fit it within the site.

Proximity is important.

And if we continue the next image, please, you can see our classic floor plate, a simple floor plate with natural light flowing from all directions, particularly the northern side, which is the most important side for natural light.

Uh, we're thinking these are the sustainable principles of basic design in lead buildings today.

And if we can and you can see there how the garage rises and eventually you can see the upper levels, and this is where we are, and we have a clean building.

Most importantly, government is always changing.

The world is always progressing, and you need to have a building that is flexible, adaptable to the future.

And that is what we have created for you.

A building that symbolizes how efficient the bureaucratic system can become, and that it will adapt to the times as we go.

If we move on to the next image, please, you can see here how the tower rises, 14 stories, organized with a primary views, uh natural light to the north.

Um next, please.

Now you can see what I meant by orientation.

You look at this building, you know where the entrance is, you know where the plaza is, or hopefully we'll have a budget for art so we can have also some sense of culture into the arrival.

We have a grand lobby.

You can clearly notice on one side is the council chambers, on the other side is the building serving the public for the functions of the government.

Um, I design buildings that have serious safety problems nowadays, like embassies, you know, and federal courthouses.

You see those letters, those letters are actually barriers.

Well, beauty is where you can conceal the safety of the building in a manner that people don't notice, that it is integrated into the design.

Um, likewise, the steps that rise there in a manner that any truck we wouldn't be able to make it through.

We have it all prepared for the worst case scenario.

And this is what we were hoping.

We have transparency into the council chambers that is beautiful to be able to sense what's happening within.

Yet that those vertical elements that you see there are also barriers.

They're still barriers that protect the space.

And uh so we thought of every detail of this building so that it would have uh total uh awareness of all the possibilities that could happen in this building, but yet to make it friendly, so it doesn't look like a protected place.

And when late at night commission meetings are happening, you can just enter on the ground floor, you don't have to take elevators, you don't have to change anyways.

You find you know, you see that lit up hall of democracy to the right.

You know that's where you're going.

It's very simple.

You don't have to figure out what kind of crazy stairs or methods of entry.

You know where you're going.

It is uh, and that is what we are trying to achieve here with this design.

You can see the south side with the PV glass panels.

These are not what it called photo take, the blue panels.

These are glass today, there's glass that looks just like glass that is actually collecting energy for the building, and that is what we are proposing.

You can see you have no idea there's a garage there.

That's the whole objective.

We don't want a city that looks like a collection of garages.

The garages are concealed within very nicely.

We have additional cars that were necessary, and they will be there from day one to serve this building.

And uh move on, please.

And you can see here when I meant by the entrance is simplicity.

You clearly arrive in the middle, to the right or to the left, defending, depending on what are the functions that you're seeking to have.

And you can be if you're not arriving by your own car, you're arriving by other means.

You can have, for example, um an Uber dropping you off.

And the last thing we want, by the way, is an Uber stopping traffic.

We have a place for them to unload people.

We know that this is a crisis in many cities about shared driving that is causing some disruption of traffic.

So we have addressed all of these aspects of a building of this kind.

And uh, so hopefully I've given you a summary.

I want to tell you a few things that I want to conclude.

Um, everything you've seen here are not just renderings, they're not just possibilities, they are realities.

There's no bad in the switch here.

This is the design.

We've worked out everything that you see there.

You've seen everything is to scale, every fire stair is in the proper location, every elevator, every dimension that you need for offices.

We've calculated based on other city halls that we have done, where including one that we're doing now, where the direction of city halls is going, and that is what we are prepared for in this building.

We never start with just an image.

We design from within, we study the needs, and then we design the building outward.

So that is our strategy, and hopefully, we've designed a photogenic building for you, but more importantly, a future-proof building.

Thank you very much.

Thank you.

Thank you, Barnardo with Architectonica.

He Barnardo is an iconic architect for Florida, unmatched, just so everybody recognizes that.

My name is Russell Anderson.

I am the pre-construction executive for Gilbain, and I'll be the design manager for this project moving forward.

I would like you to know that Gilbain is an unmatched uh source for this project overall.

We represent both the construction company and the development company, single source, with over a hundred years of experience in delivering successful projects.

Unmatched.

So integrated general contractor and developer.

Want to start by talking about project delivery.

Our approach to the delivery is essentially a focus on four main focus items.

Number one is the flood elevation and flood mitigation, critical for your project and the history of your project.

The second is the uh hurricane severe weather hardening.

We come to the table with a proposal that includes level e impact classification.

All right, this is essential for your government facility to withstand high-level winds hardening beyond South Florida building code.

Um the third is long-term operational stabil uh sustainability, making sure that your project is going to be there for the long haul, and as Bernardo mentioned, it will be allow for flexibility overall.

And the fourth is life safety and security, critical in these times uh for projects, and we come to the table as experts.

Um these are all the things that we're bringing to our team, the Florida Beacon Collaborative team with Gilbain building at the core.

Next item.

Um we're gonna work with the city during the pre-development phase.

This is very important.

We've provided some images and some preliminary design today to bring to the table to talk to you about.

This will go through a process of integration.

Uh we'll be focused on collaboration with the end uner user, the city.

All right.

What are the cost drivers in design?

Um we come to the table with a focus on the city hall is the main element, the offices, class A office building, and as Bernardo said, we've included 222 cars in our base proposal, uh, which was mentioned earlier in the session today, that other submissions did not include.

Uh, this is important for a Class A office building to function accordingly, and if you decide to have an off-site parking, the building will be self-contained and function.

It also includes public public realm spaces, uh, and it is also lead silver building.

The second is the Hallmark design, allowing for uh the flexibility and hardening, and also the essential building requirements, as I mentioned previously.

Um we also come to the table with construction solutions as the builder.

What are these?

Gilbane's strength and vertical integration.

Very important to you.

Um it should be.

Item two, best trade contractor involvement, including resource for local labor, increase local labor, with our next 150 platform that Gilbane has developed, unmatched in our industry.

The third is product delivery and warranty, utilizing another platform that we have called Next Direct.

This is the gives us the ability to work with you for you, directly to the suppliers, and make sure you're getting the warranties and delivery dates that are required.

These are all the things we're bringing to the table for the primary cost drivers of delivery.

The other is construction methodology focused on schedule, quality, and cost.

All three must be delivered.

These include cost management delivery certainty, schedule control, on-time delivery, which we talked about, our schedule being 22 months.

We are very confident in the delivery of that time frame based on early permitting with the city and also inspections with the city and making sure we can deliver it in 2028.

We will achieve this deadline.

Item three is the quality control and inspections using integrative and physical mock-ups, and again working integrated with the city inspectors.

The fourth is procurement, making sure that we have pre-qualified trade contractors, again, bringing local resources to the table, assuring we have Broward County and local resources for labor.

Fifth is safety, making sure we're focused on public and construction safety, virtual design, and the value add, what we bring to the table is assuring that we can assist the city in the move in of the project overall.

All right.

Um the last item is of course our safety record.

We are the industry leader in safety.

We have over 150 years of safe delivering safe projects, and we have the industry best OSHA safety records, bar none.

So I want to thank you for having me here today.

Okay, great.

Thank you.

Would you like to conclude?

I think we're going to conclude here wrapping up with the Jason or Sherry going to be speaking at all.

They signed up.

They're available for the QA session, which is why we signed up.

Okay.

Yep.

Thank you, Mr.

Mayor and Commissioner Zach Tranti again.

Uh just spending up a minute here before we get to QA around the budget, right?

And as was noted, you know, the Gilbane budget has a significant amount of contingencies, you know, roughly 40 six million in contingency total here.

And we think at this point in time at this level of design that that's a prudent initial contingency level to carry and is consistent with other projects of this size and scale elsewhere.

Um, you know, in the initial kind of um scope of work review when we're gonna kick off right, we're gonna have an opportunity to work through the major assumptions and ultimately we're not gonna go into uh financial close with 26 percent in in contingencies.

But at this current stage, you know, for everything that can happen between now and 13 months when you're going to a financial close, having sufficient contingency is very important in our experience.

Quickly on financing, uh, again, realizing we're the third of the fourth presentation here, and you've seen a lot of these uh slides already in some form or fashion.

But you know, locking in on scenario A, just to reemphasize, we are very much open to the prospect lake solution with you know the the city issued debt and having an equity component.

We're also able to accommodate a completely city financed option, just being a fee developer simply.

So we have tried to contemplate all of those options along the spectrum here, and the key being you have a lead developer uh in a position as your counterparty that no matter which direction during a long you know pre-development phase, ultimately the city decides to go.

You will have your lead developer and design builder as your primary counterparty.

Uh this just corresponds to some of the numbers again that PFM ran through.

Um our scenario A D B F O M with that 33.8 uh million dollar AP that assumes taxable debt, so that's not you know the city issued uh tax exempt solution.

And then we ran through a couple others here, and I think you can just see you know overall kind of the difference between the debt financing uh levels and the corresponding payment.

Each of these has uh an OM component in it again noted uh by PFM, that's roughly 2.1 million.

I will not uh bore you with the structure slides here.

I think we'll go to John Keegan to wrap us up.

Thank you, Zach.

Thank you, Zach.

So uh lots to digest today.

Uh but in my closing remarks, I'd like to hit on a couple themes.

Um, first of all, I'm tremendously proud to have been a part of the Gilbane organization for 40 of its 155 years.

And during that time, I've seen and been a part of the best of what Gilbane and its teams have to offer its clients.

For projects such as this, that involves listening, leading, and delivering, actively listening to the city's needs, objectives, and concerns to assure a bespoke feasible solution, born of a robust dialogue among all stakeholders, and proactively leading those stakeholders to a clear and attainable objective, born of a very detailed development plan, equally embraced, understood and embraced by all.

And lastly, successfully delivering on our commitments to the city while keeping our core values front and center, foremost among them integrity.

The attributes you see on the screen, the screen not only speak to our experience and our capacity, but also to our advocacy and our adaptability.

While in our submission, we've thoughtfully presented preliminary concepts and initial recommendations.

We look forward to working closely with you to thoroughly vet each of those options to constructively challenge one another's ideas and assumptions to in a way that brings forward the best solution for the city and its residents.

As an officer of the company, I'm particularly excited about how Gilbain's vertically integrated approach to project delivery brings value to the city of Fort Lauderdale.

You have our commitment to abide by Gilbain's core values and do what's right for the project and the city at all times.

Were you to have any concerns?

You can look to me to make sure that they're satisfactorily addressed.

We hope we earn the privilege of collaborating with you in delivering this transformative project.

And in the meantime, await any questions you may have.

All right, great.

Thank you for having us today.

Thank you so much.

We really appreciate your presentation.

Um start with the Vice Mayor.

Vice Mayor, do you have any questions?

Okay.

Um Commissioner Beasley Pittman.

Yes, good afternoon.

Um, thank you again for your presentation.

Um I do have a couple questions.

Um in regards to the P3 opportunity, here in Broward County in South Florida, could you tell me how many P3s you have actually executed?

So right now we have at Palm Beach Atlantic University a high-rise project there that's currently under construction.

Um, but collectively as a team in our quals, I think we had you know the total number of P3s, but in uh ongoing right now at this moment at the developer led, we have the Palm Beach Atlantic uh University project.

Okay.

Are there any completed that you've done in in this general area, South Florida area that's completed?

P3s?

Uh completed at this time.

Uh we do not have a completed project.

Okay.

And then in regards to employment, local employment, what is your plan to include um local opportunities for those who live in the city to be employed to be a part of your process for this?

So I think Russell talked about our our next direct program specifically, and that would be you know the case where we would be striving for 80 percent of that labor to be local labor, um, which is typical of you know that program in an area like this.

All right.

Okay, that's it.

Any questions?

Okay, great, thank you.

Commissioner Glassman.

Yes, thank you, Mayor, and and thank you to you and your team uh really for the professionalism and the excellence, and uh I I really appreciate it.

Um we're very fortunate to have this choice in front of us today.

Um everyone's been doing a really stellar job, and I appreciate all the way through the process all the questions you guys asked, all the supplemental information.

Thank you.

Um couple of questions.

I want to just refer to the exhibit one, page 17 of 27.

Um there's a chart there that basically costs uh it says construction cost breakdown.

Um some of the numbers um for you are a little bit out of range with the rest of the presenters, and I just was hoping that you could help me understand that.

So when I look at, for instance, indirect soft costs, and and again, I know that the construction costs can change, we can set a budget, we can you know set parameters, and that can you know be an equalizer when it comes to whoever we decide to partner with.

But some of the other costs, not so much.

Um help me understand why um on the indirect soft costs.

Um folks are sort of between 22 million and 37 million, and but you are at 90 million.

So is it it's just a very different number than the rest?

Help me help me understand that.

I think one of the major factors is the contingency level that I was discussing a little bit earlier.

So there's the 17.2 million dollar developer contingency uh line item, and then there's another 30 between your design and estimating contingency, you know, the design builder contingency that you know is making up 30 of that 60.

I think at this point as well an escalation contingency at six six point six percent.

So that's 30 within that 90 of additional contingency.

Um additionally, you know, we have taken what I would describe as a again conservative but prudent rue around insurance with a project starting you know two years out from now, right?

We've we're carrying insurance at roughly you know 25 million.

That's comprehensive builders risk, you know, CSIP program, subcontractor default, payment performance.

But aren't soft costs kind of fixed?

I mean, design fees, you know, permit fees, uh I I mean, aren't those kind of fixed?

They don't really fluctuate like you know, so like you know uh materials, uh materials, you know, labor shortages, um, you know, uh I I mean the you know I sometimes you know in construction I understand how it's hard to predict what construction costs are gonna be.

But soft costs, aren't those usually like you know how much a design how much an architect is gonna cost, you know how much the engineer is gonna cost.

This is three times.

Soft costs in those categories specifically are driven off the hard costs, however, so right, their percentages at this point at the conceptual level that we've built in, which are more conservative, right, than some of our peers that are competing, but they're the contingencies are you know 20 percent in that bucket that you were just asking asking about Commissioner Glassman that ties to that 30 million based on the hard cost number.

All right, so again, you know the problem is we're trying to compare apples to apples.

And if you are including other line item costs in your soft cost uh line item, then and the others aren't, it's gonna be tough for us to figure out you know who who's charging what for what level of service.

That's all.

That's that's all the we're we're trying to deal with right here.

Okay.

Yeah, go ahead, John.

Um Mr.

Mayor, uh so I think the two drivers are contingencies and insurance.

Okay.

Insurance is Zach had mentioned they are estimates for the full suite of insurance products.

Total builders risk, subcontractor default, contractor-controlled insurance program, general liability, priced for a project that is in the future in a and in price in a very volatile market.

So admittedly on the conservative side, but appropriately so, given the volatility of the insurance market and the schedule for the project.

Certainly something that would be we would be front and center with you in drilling down on throughout the pre-development phase.

Okay.

The contingencies, I think it's important to note.

These all four teams are presenting conceptual designs.

I'd like to think based on Bernardo's presentation today.

Ours is a very thoroughly very well thought through conceptual design, but it's still conceptual level nonetheless.

So were we to have the privilege of working with you on this project during the pre-development phase, specifically the design phase, there are a there are thousands of decisions to be made.

Notwithstanding the good information we receive from the city and the RFP, the guidance upon which to base our proposal, thousands of decisions yet to make.

What you don't want to have happen is a decision to make where you're where you're thinking we wanted stone papers in the plaza, but your partner may have been assuming pre-cast papers in the plaza.

Just picking an example.

And right there, you know, there's a six-figure swing right there.

And if that were to happen in our we've we've got that sort of thing covered.

Because these contingencies are set up at a conceptual level of design.

And as the design progresses, that design contingency narrows as the buyout of the project, meaning the award of trade contractors, the escalation contingency narrows.

And the construction contingency, that really remains more or less that carries through the constructions phase.

So that's the last of the contingencies to narrow.

But they're very specific.

Each of them has a very specific purpose in the capital stack, and it's really to preserve the integrity of the project, to ultimately end up with the project that you want to have, and to avoid so uh surprises downstream, where there are crossroads where you were thinking one thing and we may have been thinking and your partner may have been may have been thinking another, and there aren't funds in the project to cover those ambiguities because this is not a project, it's a partnership.

So we need to have the uh contingency appropriately set up that have us working together to winnow those decisions down as we move through the design phase.

Hopefully that answers your question.

Okay, thank you.

I'm sorry, Commissioner Glass.

No, no problem.

Uh and and then one more question on that chart.

So help me understand.

The contingencies and the insurance that you just mentioned as the drivers of that, is that the same uh are those the same drivers for the category that says overhead administrative costs?

The others are roughly between 11 and 15 million.

You guys are almost 21 million.

But is that the same explanation for that uh category of overhead and administrative costs?

Uh it's a little bit different in that, in that we're we're carrying really in that that total makes up you know, development and CM fees, which are market four and one percent uh respectively there.

We have some level of developer, you know, the SPV level of insurance.

Um, and then we have probably what I would again call conservative in terms of a legal budget.

I think you know the city can appreciate the amount of legal work that goes into these P3 projects, um, but we're carrying you know a million dollars plus there and some permitting and zoning impact fees, et cetera, two and a half.

So we feel like their numbers again, similar to the contingency approach that are conservative, that as you get into design, these aren't the numbers necessarily that you're gonna end up with as you're progressing through your different design, um, but they're conservative numbers at at you know at that still.

Okay.

No, thank you for that, man.

And my last question, um, when I look at your your DBFOM example, um you you basically um explain that you see a debt interest rate of six point seven five percent.

Is that high?

Is that is that a realistic number um when we're looking at interest rate on the debt?

I think for taxable debt, we're seeing anything from six and five, you know, seven and a quarter was another scenario I think we ran in the ones that we showed.

Um so for taxable market, um, depending whether it's muni bonds or it's more of a bank solution, the bank solution seven and a quarter, that's for our off-campus you know, speculative real estate developments.

That's currently what we're using for taxable debt there in more of the muni market, six, seven, five, we think is a reasonable market number.

Okay, for you see.

We do.

Okay, thank you.

Bernardo, have you ever seen uh Lewis Sullivan's guarantee building in Buffalo, New York?

Have you been there ever?

Quite a building, huh?

Yeah, exactly.

Yeah, amazing.

Uh excellent.

Thank you so much.

I really appreciate it.

Thank you, team, uh, for all of the talent and uh and all of the education and really appreciate it.

Thank you.

Thank you for the opportunity.

Commissioner Sorensen.

Do you have any questions?

Thank you, Mary.

Yes.

Thank you, team.

Appreciate all of your work.

Um see, first availability payment.

So year one availability availability payment three point 33.9 million.

All right.

And does that escalate year after year?

The O and M payment would escalate based on CPI.

Um, but it's intended to be fixed capital component.

Again, there we're using in that scenario is the taxable solution with the equity tranche, but right the ONM payment would escalate with CPI, but the capital payment component.

And and the OM ONM payment is included in the availability.

It's in that, yes.

So it would escalate.

Okay.

Okay.

Great, thanks.

Um next question is um from a professional design negligence within the municipal projects.

Any design or professional negligence for any of your partners?

I think that was was noted in the initial presentation, so I'll turn it over to Sherry Goodyears.

Hi, good afternoon, Sherry Gutierrez with Architectonica.

Uh, to address this issue from our perspective, it's rather simple.

Uh, with respect to the Las Wells parking garage Architectonica scope did not include specifying the building lighting, it did not include the installation of the lighting, it did not include the maintenance of the lighting.

And as that relates to the mesh or the skin that's applied to the building, the very same products have been specified on many projects through Zayn are the same representative, um, most notably in close by the New World Symphony parking garage on Miami Beach with very similar conditions and proximity to salinity.

Um that product also requires maintenance and things of that nature.

Um, but from our perspective, we just wanted to clarify that those are the issues.

And at the moment, there are allegations.

No proof has been or guilt or verdict or anything has been rectified, and as it was clarified earlier, we're it's very early in the process, but that's our scope on that project.

Okay.

Thank you.

Thank you.

Any OSHA violations from any of you all take that as a no.

Great.

Um, what uh environmental sustainability matrix are built into this from a lead standpoint, um, so forth.

We're receiving assuming lead silver in our budget.

Okay.

Okay, great.

Thanks.

And let's see if I have one last one.

Um estimation as to what the contingency would be upon signing a CA.

Would it still be what it is?

What you're saying?

We would not expect the contingency, particularly, you know, your design estimated contingencies to be that high.

Um, you know, we would hope to whittle those down.

You need some contingency, right?

At the construction cost level.

Um, but you know, provided you feel like we have a robust number now based on the design we pulled together, we would hope to get that you know six percent design contingency at a minimum down from the levels are at.

So certainly not coming in with you know 45 million plus in contingencies.

Okay, great, thank you.

Thank you.

All right, great, thank you so much.

So we really appreciate it.

That's thank you.

Thank you.

Oh, I will Commissioner Beasley Pittman has to be able to do that.

I'm sorry, I did have one uh question.

Um on the same conversation regarding um employment.

Um, when it comes down to the comprehension agreement, when we would get there, are you gonna include that percentage that you're willing to employ within that document as well?

We would be willing to commit to a percentage as part of the the negotiation of the comprehensive agreement.

Thank you for that.

Okay.

Any further questions?

You're good?

Okay.

All right, great.

Thank you.

Uh thank you, folks.

Really appreciate your your presentation.

And um so we now turn to our last presentation.

We'll take a five-minute break.

Where's uh this can let's proceed, and uh looking forward to our last presenter for Lord uh FTL City Hall Partners.

Thank you for being here.

Thank you for your patience.

And uh let us begin.

Good afternoon, everybody.

My name's Cody Keith.

I'm the president of Core Construction, one of the team members with FTL City Hall Partners, and our team's excited to present to you today our proposal for a turnkey service of a new city hall for the city of Fort Lauderdale.

We're gonna talk about our financial structure, the product delivery approach, and a little bit about our team.

So moving into team introductions, we have Alex Barrett, the vice president from Plenary, myself, Tim Moore, President of Styles Construction, Joe Palmer, the principal from Palma Architects, Roger Baum, our P three advisor for core, uh, Carl Connor, uh, principal from PGAL, Ted Kava, project director from uh core, Greg Kimmelman from Styles, and Chris Ratola from Styles Property Management.

Do we have a video that we can upload?

Can we pause our time?

It needs to be on the you guys have the PowerPoint.

They're on the PDF, it needs to be on the you guys have the source.

No problem.

Team introductions.

This is a different project to us.

This is a different project to me, and it's part of the reason why I've felt so strongly and passionate about building out a team that is truly the industry leaders and everyone that is experienced in being able to do this.

We've put the best on every team because that's what this city and our neighbors deserve.

This is really a new era for Fort Lauderdale.

This building is absolutely beautiful.

It's going to be the front door to the city, the gate that everybody goes through when they come into downtown.

But this building is really designed with purpose.

And it's it's anchored around this DNA that we in architecture call passively intelligent.

And it will also encourage uh the next generation of uh employees to really be excited to come and work in a building like this.

Because anytime you're talking about a public-facing project or building, whether it's city hall or whatever, you've got to think about the interaction between two stakeholders the public stakeholder and then the employee stakeholder.

Today's city hall is it's it's much more interactive.

It's much more connected to, especially in the culture that we're in today where we're much more digitally connected.

And uh this city hall that we envision is one of the future of Fort Lauderdale, one that is a lot of it is thinking ahead in how it brings a community together and it's responsible for change, positive change.

Fort Lauderdale's, you know, history in yachting and boating.

I always thought, you know, it wouldn't it be wonderful if you took the you know the the shape of a hull of a boat and you made it the symbol of the city.

So this form is really like you know, uh like you took a uh a boat and you just put it vertically to the sky.

This eye of the needle of the shape is actually opening itself, welcoming the public, the community to the city hall.

It's not as uh dramatic when you're actually in the space in the interior.

So we've taken the opportunity to create some really cool collaboration spaces, say in the wings, uh, that'll be a unique space, and again, we see those as inspiring.

So we've proposed what we think makes sense for this project, but what's important for them to understand is by agreeing to pick us, they are not agreeing that it has to be exactly the way that we've proposed it.

There will be a period of anywhere from four months to nine months, depending on how much involvement they want, where we will collaboratively set the scope together, then take the project through schematic design with regular communication.

Styles is credited with shaping the Fort Lauderdale skyline, and so there is a huge element of pride and satisfaction that we get, not only from working in this city, building this city, but serving the community and the city through how we operate these buildings.

I would love in the future for people to be as excited as the first day they move into this building.

And that's where great architecture usually withstands the test of time is when people appreciate it not just because of how it looks, but the experience they have once they go in and move through it and see how it functions truly within in this case within a workplace.

No player on this team is new to each other.

We've all worked together, we all understand each other, and we ultimately understand what the clients want and need in a project team like this.

The partnership with CORE is another exciting aspect for us.

We can really be nimble and creative and in how we approach projects, um, and we think this is a great opportunity for us to do that together.

The city of Fort Lauderdale and their employees inside of this building really deserve local, fast, attentive response, which is what you're gonna get with Styles property management.

The team that we wanted to put together was the most experienced team and the most qualified team that has a proven track record of being able to deliver projects like this, and not only being able to deliver, but ensuring that it's the most flexible to the responsiveness of the commission and responsiveness of the community and the neighbors and who we trusted to be able to deliver a project like this on time and on budget.

We're convinced that we have the team for the city of Fort Lauderdale.

We've got it all.

So, as Cody just mentioned, every member of this team was handled.

We've got it all.

Each member was handled, right?

For the specific needs of this project.

So plenary is the number one developer of DBFOM infrastructure in the United States with 65 assets across North America.

On the construction side, CORE and Styles both have deep local footprints here in the city of Fort Lauderdale.

On the FM side, that's not a typo.

Styles is also on our FM side, which is a very unique aspect of our team.

On P3s, the interface between the DB and the O and M side can be the most challenging element of it, and we have that all under one house.

And so that will help us to alleviate those potential conflicts in the future.

And then on the design side, Palma and PJL are leaders in both civic and class A infrastructure.

There's a misconception out there that plenary is an Australian company, so I wanted to set the record straight.

That is a separate company entirely.

We are based in North America.

We have 130 employees that are exclusively dedicated to the development of P3 infrastructure spread across five offices, including one here in the state of Florida.

This is a very high level schedule for the interim agreement phase.

I think what I want you to take away from this is it'll be a collaborative process where we start with programming and take it through schematic design with multiple checkpoints of pricing updates along the way so that each decision point that the city has will be informed by real price so that you can make the right decision for the design.

And just piggybacking uh what Alex was showing there with the timeline.

So, you know, one of the things that we wanted to lean into, we've heard this uh feedback a few times now, which is so if you select our group, what happens after you enter into an interim agreement?

Well, picking back up on that word collaboration, we're gonna enter into essentially these kind of four working groups.

We're gonna lean into the design build collaboration, you know, with your staff and continue refinement of the aesthetics and the cost, the financial working group working with you know, uh your CFO, PFM, et cetera, um, and then the ONM working group looking towards that long-term solution, all of which then feeds up to uh all stakeholder meetings.

And what is the real goal here?

Transparency, collaboration, so that we make good decisions together, and that we ultimately um lead to uh advanced your vision brought to life.

So some of the teams that you're gonna see here today, they have told you what they're going to do if they get the project.

But we wanted to emphasize what our team has already done, what Styles has been doing in this community for 75 years, what CORE has continued to do since we've been in the city of Fort Lauderdale and in the state of Florida for the last 43 years, but we've already been active in the community, we'll continue to be active in the community.

As at a part of being in that community, we want to help build the people around us and make sure that any projects that are going on in Fort Lauderdale that are going on in Broward County, that they're built by other people that are inside of our community and having them work with our CM mentorship programs, having them work with our apprenticeship programs and the different partnerships and developments that we have so that the jobs that are created here are not just temporary jobs that are for one project cycle, that these are jobs that they're able to enter into with us and work on, but develop themselves into a career that they can continue to grow off of long after this project is completed.

Most teams are going to talk to you about the stakeholder engagement that they're going to do if they're awarded this project, but our team has already begun the stakeholder engagement.

We've been meeting with different HOAs throughout the city for months at this point.

Um, the HOAs that you see in blue, we've either reached out to, had meetings with, and have talked to, and got their input either in the design phase through the proposal development phase, and we've not been able to hit them all.

There are a lot of them on there, but we will continue to throughout this entire process and make an effort to make sure that everybody's voice is heard here.

We're now going to talk a little bit about the experience and performance.

We've heard each of the commissioners talk about how important experience is to selecting the right partner, and we absolutely agree.

And our team has more experience that's relevant to this project than any team.

Plenary has not only delivered the only social infrastructure DBFOM project in the state of Florida with the Miami-Dade County Courthouse that opened two months ago for judges, but we also have the only city hall in the United States that's been done as a DBFOM in the Long Beach Civic Center redevelopment.

We also have a number of projects that were developed using this same interim agreement phase concept, such as the Prince George's County Public Schools package.

And we will use the documents from that to allow us to get to work right away because we have contracts that we are ready to share with you on the interim agreement side so that we don't waste time uh with that phase of the project.

On the design side, as we mentioned before, we have lots of experience on both civic infrastructure and class A office space, which is really what this building is is the merging of those two elements.

On the design build side, similar story, but also specifically here in Broward County with the Supervisor of Elections building, which was done as a DBF P3.

What we also bring with Styles is over seven and a half million square feet have been developed, built, and managed within the city limits.

It's a lot.

There's also another million and a half that's recognized on the strolling as well that's already underway.

We bring an extensive amount of experience in the downtown setting.

We understand traffic flows, we understand busy times of the day.

We also understand the need to be cognizant of dewatering because we go deep, we're by the intercoastal, and there's now more and more sites within the city that are contaminated.

So we understand how to deal with that discharge.

And I think what we've gained from all this time is our experience and our knowledge and our ability to work with the city's building department.

I we gotta say we are one of their best clients, and they're one of our best clients.

And what didn't mention to you is out of that seven and a half million, he was personally involved and responsible for four and a half million square feet of that construction that was completed inside the city of Fort Lauderdale, including the building that we're in today.

He was the project executive on this project, and what that brings to as far as experience, experience with the building department, but with the local trades, with the local subcontractors and those relationships that go back for years, tried, tested, and true throughout this process.

Here's a quick snapshot of plenary's experience in the P3 world.

And I just want to highlight that P3 is a very broad term.

A lot of teams can say they have P3 experience, but these are all DBFOM, which is the type of project you're looking to do here, and no one can say they have as much experience in that space as we do.

We proposed an availability payment project, uh, but we listened to the feedback at the start of this meeting, and we are very flexible and willing to explore the potential hybrid solution that PFM and the city have raised.

So I think this is the most important slide in my opinion.

Uh we all saw the report that came out, and we heard the initial uh financial evaluation, and it focused on the top line cost.

And our team was the highest cost for construction and therefore the highest cost for the availability payment.

But as we heard, these are not really apples to apples.

We have different designs, different square footage, and so the direct cost, which you know, as our construction team calls it, the the sticks and bricks, that is going to be a function of the design that we collaboratively develop during the interim agreement with the city commission.

So I would like to next slide show that really the only apples to apples cost that we should be focusing on are these items we've highlighted in red here.

Because these are not a function of the design.

Here we we've highlighted the indirect construction cost and the equity IRR.

Those are elements that are fully within the control of our team.

You know, for me, it's the equity IRR, the rate that we charge on our investment, and for the construction team, it's the indirect cost, their CM fees.

And so when you look at our cost, they are substantially lower in these elements than the rest of the teams.

On the indirect construction cost, ours came in around 12%.

One of the other teams had 56% for indirect costs, and the other two were in the 20s.

So as you work through the interim agreement phase and you will eventually get to the budget that you're looking for on the direct construction cost, when you apply our indirect cost to that direct construction cost, it'll be the lowest cost.

And then when you take that and finance it using our equity IRR, which was also the lowest, again, you'll have the lowest availability payment.

And if you're not a finance expert or developer, what that truly means is that the lowest cost construction fees are shown on this team.

The lowest cost of financing, in our opinion, is on this team.

So while if the city sets a budget, we're confident that this team can deliver it cheaper, more efficiently through our finance structure and through our construction fees.

And instead of pre-construction for styles construction and with the core pre-construction team.

My job is to take ultimately what's the best intersection of design and cost and driving that towards the correct the correct intersection of those two things.

And we've proven over and over again, you saw the map that we had had up with all the red buildings.

All of those buildings in terms of the pre-construction went through that same process where you know maybe it was a little more, you know, over not I would say more design than anyone would want it to be.

But it's our job to make sure that the design and the budget track with each other and ultimately that track towards a project that works financially for the city.

And I can't say that there's any other team that has that much experience in downtown Fort Lauderdale as much as we do.

There was also a discussion on botting capacity.

We just put this in here for transparency.

Between core and styles, there's an $850 million single project bonding capacity as well as a $3.7 billion aggregate bonding capacity.

This is a more detailed schedule of what we showed before.

So again, just showing you how we'll work through the programming and design on the commercial side.

We'll work through the contracts and we'll we'll establish the financial structure all during the interim agreement phase so that when we get to the dotted line, construction can begin.

So as you've already heard through our my colleagues, collaboration carries through design.

And our team would work very closely with you and all your departments in how to design a truly efficient and sustainable, resilient building.

And our aspiration is what we've shown is to deliver a world-class city hall, which we believe Fort Lauderdale deserves.

This design is not one of just architectural beauty and significance.

In fact, resiliency was a key factor in all the thinking that went into its development.

We knew that wind is one of the most significant environmental forces acting on any vertical structure.

We needed to take into consideration its location and the high potential that high winds could and will certainly come one day, especially here in South Florida, where high windloads and accelerations must shape how we design.

Large, tall, box-shaped buildings enhance wind activity and have shown to cause structural damage and create unpleasant windy areas surrounding them.

Our goal with the Fort Lauderdale City Hall is to create a building that performs with nature, not against it.

Inspired by our nautical design, the building's form, much like the hull of a ship, is shaped to shed wind efficiently.

Its curvature and softened corners reduce drag and help reduce vortex shedding, particularly on the leeward side, where negative pressure differentials can be the most intense.

Through computational modeling and with future wind tunnel testing, the building reflects a geometry that enhances both structural performance as well as considers the comfort for all who will use it.

The form diffuses downdrafts that typically occur when wind strikes a tall facade, maintaining a calm, comfortable experience at the plaza and ground level.

Ultimately, this new Fort Lauderdale City Hall stands as a symbol of resilience and forward-thinking design.

A civic landmark shaped by its coastal environment and crafted to serve the city's future.

So I I think one one last thing I want to touch on, which I think separates us from our competitors is we could we created a master plan, a plan on a site that gives the most to the public.

Meaning this heart of the project, the chambers are celebrated within this great plaza that has a formal identity to what is a city hall.

Next slide.

And within there, there's you know elements to it that are passively able to with security and dealing with you know forced entry, ram, and you know, all of the things that in today's time and age are very much a concern.

We are able to do it where the public doesn't really notice that it it provides these things.

So as you can see, this great space creates clarity to identify what truly is a city hall of world class.

We have created a space that represents the very heart of governance, the new city commission chambers.

This is where decisions are made, where debates unfold, and where the future of the city takes shape.

It's a place that must reflect transparency, accessibility, and security, while maintaining comfort, clarity, and dignity for everyone inside.

The chamber is fully accessible, ABA compliant, with comfortable seating designed for long sessions, and seamless access to every amenity a modern assembly space requires.

The seating is a semicircular configuration, encouraging open discussion and equality among commissioners.

This is not a boardroom, it's a conversation space.

Every commissioner, every speaker, every citizen becomes connected through clear sight lines and perfectly tuned acoustics.

The materials speak to both strength and warmth.

The chamber's interior is wrapped in angled wood panels, creating a sense of calm and refinement.

Yet beneath the surface, the structure is fully heartened to withstand hurricanes, and if ever required, even blast conditions.

Technology drives the chamber forward.

Each commissioner has an individual monitor for live data and presentations.

While a large, brilliant LED wall serves as the room's focal point, displaying agendas, imagery, and exhibits in real time, masterfully displayed.

Go on to the small distance screens of the past.

Now every participant, every viewer shares a single unified experience.

This advanced audio visual system developed in collaboration with world-class consultants, including those behind the sphere in Las Vegas.

Security remains integral, discrete but advanced.

The chamber's systems and enclosure are designed to protect using the same expertise employed for projects done for the FBI and NATO.

Commissioners enter and exit in privacy from a secure private garage through a secure pathway to the staging area directly to the city area and can access the city hall building through a private entry corridor and elevator.

Its ellipse shape is purposely designed to let wind flow around it.

It sits a level above the plaza and the garden, and the public feels that this is for them.

And at night, it becomes the backdrop for some magnificent evening events.

An exhibit area, an event space.

It's right there.

And the grassy green roof will reduce heat islands and is visible from above, enhancing the view from other buildings in the area.

It stands as more than a meeting place.

But a space where transparency, innovation, and resilience converge.

A place built for open dialogue, designed for the future.

This is the new Fort Lauderdale City Commission chambers.

Okay, you've just seen and heard an awful lot of information about the architecture of the exterior, but we want to reassure you that we understand that one of the most important parts of this is what happens to the architecture on the interior and the true heart of this building, which is really the work zone, and it's the hardware spaces for the city employees.

We just want to let you know that our programming experience will be used to get us uh a dialogue between all the users because we understand every department is unique, and our goal is to make sure that we address those unique qualities for each one of those.

In the end, we're going to provide a design that is welcoming to the public and timeless, and on the interior side for the employees, something that is uh durable, secure, uh, and efficient.

Uh, we're going to lean heavily upon benchmarking against not only wellness principles but also lead principles, and our team is really gearing up to shoot for lead goal.

And as we talk about the construction approach, we just wanted to make sure that everybody knows the Fort Laurel City Hall Partners' office is directly across from the City Hall site.

Twenty-two thousand square feet of space where this team, the architects, the development team, the CM teams are all right there in one spot, able to assist in the project.

Going back to our understanding of how projects function in a downtown setting, especially Fort Lauderdale, Andrews Avenue, one of the busiest streets and most traffic in town.

We're pro approaching it from the west.

So what we've done is we've notched out a section at the front of the building, and we're literally going to bring our traffic in on second, cut it across the site, and then come back down first.

That's to eliminate our need to go out on Andrews and unpack the traffic out there.

Ted.

You asked us to talk about how we're going to make sure this project is built safely.

And as you look at the uh record for both core and styles, we are one of the safest uh companies presenting today.

And we do that through developing a culture, not just from a leadership perspective, but all the way down to every worker on site where they're responsible for the care and custody of everyone working collectively together.

I know as part of the uh deliberations in the morning, they talked about the construction approach and construction schedule.

Well, not all schedules are created equal.

You know, as part of our estimate development, there's a hard cost contingency as well as a design contingency and escalation contingency.

And when you think about a schedule, you almost have to think about it the same way.

When when we are looking at this schedule, who's better to understand the nuances of working right here in the downtown corridor than this team?

And the reason why I want to bring that up is that we have a 40-month construction schedule from when the comprehensive agreement is going to be signed, and that will be executed in the project being finished by May 2029, and then a 20 uh an 18.5 month schedule by May 2028 to turn over the commissions building.

We are the first team to turn over the commissions building as well as the secured parking area than anyone else presenting today.

I think these two graphics do a good job, but I want to show this fourth dimensionally because really you have three projects going on.

So on the right hand side, you see the commissions building going in.

On the left hand side, you see the tower construction.

At the same time, you'll start seeing the work occurring with the uh parking garage and the safety security zone of the parking garage.

By May of 2028, you see the parking garage being completed as well as the completion of the commission building.

At the same time, we're wrapping up the completion in the tower building for May 2029 delivery.

Go ahead, tourist.

So I know everybody knows a lot about Styles.

Um I run Styles Property Management, have been doing it for 21 years.

Uh we have 22 million square feet within the area.

We are the largest privately held property management firm in South Florida.

In fact, we did the math.

We pay in over 16 million dollars in real estate taxes from the properties that we manage.

Uh so we have skin in the game.

We do care about where our tax dollars go, and that's not even counting our employees.

Um we are non-proprietary, that's important.

Uh, and we have government experience.

City hall requires a partner, not a vendor.

What does this mean for the city?

Economies of scale.

Um, with no manufacture bias, like Johnson Controls or Honeywell, where you are married to their equipment and whatever price increases they um you know force you to have, you're stuck.

So we invite lower costs by competitively bidding these this equipment and making sure that we get the best equipment that you need for your facility.

So here are just a few of the um highlighting the government sector projects that we've been involved in.

And the main thing is that these are complex, they are public facing, safety critical, much like City Hall will be, and we are used to working under a performance uh guaranteed performance contract.

We operate as stewards, not vendors, and we would be honored to bring that stewardship to the city hall, and we ask that you trust us.

Thanks.

So, as a developer, we've worked with nearly every major contractor and operator out there.

And what I think differentiates this team is the accountability.

If you just look around this room, you know, I pose the question if a challenge ever arises, which unfortunately they likely will, would you rather walk across the street to find Chris or any member of our executive team who are all based here in Fort Lauderdale?

Or would you rather try to get someone out of the country or out of the state on a Zoom call to resolve the issue?

And similarly with plenary, another key differentiator is we have never sold our equity stake in a single one of our projects.

You talk about the importance of having equity in the project for the risk transfer, and you're selecting a partner today, but many of our competitors' business model is to sell their equity after construction completes.

Plenary has never done that and will never do that.

And so the commitment you have is you're selecting a partner that will be here in 35 years when this project is handing handed back.

So just to close, we again this team here today is dedicated to the city of Fort Lauderdale.

We have been here, we are going to continue to be here.

We're ready to come up with a design that fits the city's budget.

We're ready to come up with a design that within that budget is able to achieve whatever sustainability goals the city may want uh to reach for, whether it's lead silver, league gold, if there's wellness components to it, we're here to do that.

Our teams are committed to local participation as we have always done uh locally between core and styles uh have a track record of doing so, and ultimately, this team is the only team that has developed a city hall under a DBFOM model and is ready to do this for the city of Fort Lauderdale.

Putting this plan together, we think that we're the right partner for the city with the right plan, and we came up with that plan by listening to the community.

What we heard in the ULI.

It does.

Finish your thought.

I just wanted to close with ultimately the city is the client.

You decide, we'll provide it.

We live here, we work here, we love this city, and we'd love the opportunity to work for you.

Great.

Thank you so much.

Um is there more?

Yes, there you go.

Stop.

Vice Mayor, do you have any questions?

Okay, uh, Pamela Beasley Pittman, Commissioner, do you have any questions?

Um, yes, um, just one question in regards to um employment and those who would be hired to be a part of this process.

Um, what is the percentage that you're looking to add?

And then also are you willing to include that in the um comprehensive agreement moving forward.

Absolutely.

Um so as the core styles team, as I mentioned, we have a track record of local participation, small business participation.

Uh a couple of our more recent projects right here in Broward County, whether it was with uh Browery County Public Schools, uh, we've far exceeded their goal of 25 percent.

The last three projects we had with them were 42 percent, 55 percent, 61 percent local participation, and 37 percent local participation.

Uh the Broward County Supervisor of Elections Office, there was no goal, no requirement, yet we still maintain a rate of 31 percent uh participation in the local and small business outreach.

Our team would be absolutely happy to incorporate a goal into the comprehensive uh or interim agreement plan as a part of that negotiation to ensure that those goals are met and that we can be held accountable for it.

Thank you.

That's my only question.

Okay, uh Commissioner Glassman.

Yes, thank you, Mayor.

Uh again, and I have said this to every single team.

We are so blessed to have this choice to make.

Uh thank you for your work and for your talent.

Um it's been a very impressive afternoon.

Um, and it's just it's incredible to know that there are so many creative and talented people in our community that are you know ready to get to work.

Uh so thank you for your work and for your effort.

This is not easy.

Um this was a long process uh with lots of steps.

Uh so thank you for complying with each one of those.

Uh it's it's making our decision, I believe, both harder and easier at the same time.

Um so a couple of questions for you.

So we see a model in front of us, uh, and we know that according to the information provided, um, Fort L'Oreal City Hall Partners has the highest construction costs.

So this is a a two-part question.

So when I look at this model, and obviously each team um has made a conceptual presentation.

We know that at the end of the day, the city will decide what the budget is and what it is that we need to have in this facility.

So my question to you is uh number one, um, how should we interpret the fact that out of the box you already uh surpass all of the other construction costs?

I would point you back to the slide on indirect costs.

So the direct costs, I truly believe at this point, there's there's no sense in focusing on them because there's so much work to be done over the next six to nine months to collaboratively develop the design together at whatever budget you set.

And so the direct costs really, regardless of the team you pick, you know, everyone's going to the same subcontractor pool.

Those costs are gonna be driven by the market.

And so when you look at the breakdown of how our cost was more expensive, it's entirely driven by much higher direct costs.

Whereas all of the costs that we can control, we were the lowest.

And so when you take that collaborative process to get to a budget at the end of the day, and then add the cost that we can control, we will deliver the lowest cost for the project.

And and I appreciate that.

So that leads me into my next question.

When you look at exhibit one, page 17 of 27.

Um, I obviously we see that your your direct construction costs um is the highest.

Uh, but then to your point, we do see that the indirect soft costs um it it goes from a low, you are the lowest at 22 million, and it goes all the way up to 90 million.

Why such a discrepancy?

How do you explain that?

Um, are your indirect and soft costs reasonable for us to expect that that is it?

And how are you able to do that at a fraction of what the other teams have presented for those uh indirect and soft costs?

Greg.

Gregor, yeah, we look, we have Commissioner Glassman built milli a hundreds of thousands, millions of square feet of this product developed at downtown.

We know what those indirect costs should be.

We've gone and compared uh polled metrics on you know similar type projects, and we're confident that the indirect costs are in line with what it took to build those buildings.

So that would be uh a combination of all the the can whatever the contingencies needed to be, and I know a lot of other proposers had much higher contingencies than we did.

We contingency it appropriately for this project.

Um as excuse me, frog in my throat.

And as has been said here, you know, uh the the design will will end up what the city wants it to be.

The sticks and the bricks are what we in construction will need to control and help guide it to that proper budget.

But ultimately, you know, the market will tell us what that is, but it's our job to control those.

But to answer your question, yes, the indirect costs are consistent with what what we've seen on other similar projects.

So let me just bring your attention back to the model.

It's beautiful.

Um, but if the city decides that you know what, we're not gonna go in uh at 344 million dollars, and we say we need uh 250, because that seems to be the average of the four, right around 250, all in.

That's direct construction cost, indirect soft cost, overhead administrative cost, and contingency.

What happens to this model?

Um, how do you how do you shave um those 50, 60, 70 million dollars off of this?

What happens to this building and one what would we reasonably expect if we do come in at a cost roughly at that amount?

What happens to this?

Sure.

So on our original proposal that we submitted, um, we were somewhere around 195,000 square feet.

Uh there would not be a drastic change.

You guys have seen the original uh renderings that we provided in those proposals.

It does take a couple of floors off the building and brings the size down uh slightly, but this could completely change if the design, if you guys had a desire to completely change the design to something else, we'd be more than happy to accommodate that and work through it.

And uh with the team that we have here, I'm confident that whatever budget is set by the city that we can design to that budget without losing efficiency in the building without losing the basis of design, but still providing an amazing product that the city would be.

Well, can you can you build this building for less money?

Building this building for less money, uh it would really depend on the internal programming.

But can it be built for less money?

Yes.

Yes, it can be built for less money.

So originally your square footage was what, at around 250,000 square feet?

Uh off the top of my head, it would I believe it was around 195,000 square feet.

And you went to 250.

Uh, just north of that, yes.

Okay.

So uh again, if we did like this design, we could you're saying that we could do it, and a lot of that would just depend on what we did internally.

Correct.

And as these are estimates provided conceptually, we always tend to be more conservative on these estimates, which does show you a higher cost, but being responsible at the same time.

So this number can come down as we work through the design phase and know what the true uh programming will be inside what the actual finishes will be, we'll be able to pull that number in a lot, but to provide you anything less than the estimate that we provided, I don't think would be responsible, and we don't want to mislead or provide an unrealistic number to secure you know a contract.

Okay.

And I would just say one thing to add there that this next phase of the process, I really want to focus on how iterative and transparent that will be.

So it's not like you would say we want the project to cost this much, and we would go off in a vacuum and come back with a new option and say, now it costs this much.

Instead, we will have a series of options with prices associated with it, so that you can make the the detailed decisions along with us, not just the yes-no decision, but the decisions of each step along the way, what this amount costs, is it worth it to you to spend the money on this component?

And so that's how we can get to the budget that you desire while still maintaining the features of the building that you like.

Understood.

Um I'm gonna quote uh one of our consultants, PFM, which really looked at a lot of the financials here.

Um and in the evaluation report that we were given, um, PFM concludes that although the financing method is robust and well defined, its long-term cost profile ranks as the least favorable option for the city from an affordability standpoint.

So, how do you respond to that uh comment that they made about um your uh favorable uh or unfavorable affordability?

Yeah, so I think that that comment starts off by talking about the financing, but then where they actually go is saying that our availability payment was the highest, which is true as we talked about, and that again just goes back to the function of direct cost.

To use a mortgage example, if you buy a $200,000 home or you buy a $600,000 home, the $600,000 home is almost certainly going to have a higher mortgage payment, even if the interest rate is much lower because you have a higher principal amount, and that's the same concept here.

Our availability payment is higher because our direct cost of construction is higher.

But if you actually look to the table that was in exhibit four that PFM put in their presentation as well, across the board on the financial structure alone, our team was the lowest.

So the equity IRR, which as the city talked about, there's this potential for a hybrid where the city finances the project, but then the developer provides their equity.

Our equity IRR was 11.5%.

We're willing to stand behind that now and sign on the line that that will be our IRR.

The other teams were 12 and 13 and a half percent.

So again, at the end of the day, our financing is the cheapest.

It's just that our availability payment was the highest because our construction cost was the highest.

So just to piggyback on that, you're right.

That was actually going to be my next question.

I see that you do have the lowest equity IRR internal rate of return.

So are you saying that that is because why?

It's because we are very experienced in this market.

We know the risk profile of these types of availability payment projects, and frankly, because we are committed to winning this project.

And so while many of the numbers in this proposal can be viewed as just an estimate, just an example, when we put an IRR on a piece of paper, we know we can never ask you for a higher IRR than that again, because there'll be no justification for why we've raised our IRR.

So we viewed that that piece of our proposal really was a commitment.

And so we wanted to put our best foot forward now so that you knew how serious we were about this project.

Okay.

I look at this as a mortgage payment almost for what we're going to deal with in the city for the next 30 years.

If we decided that it made sense to do it like that, though, um, where it escalates uh every year, does that make sense to you, or why do you prefer not to have it escalating?

They started out low and then I think it was 2.5% and it just kept increasing.

What's your take on which approach is better when it comes to that?

It's a great question.

I think that the approach that's better is really up to the city.

And so it's a matter of do you want a low payment today that then is going to grow over time, or do you want a flat, consistent payment that you know as your budget grows over time, it will make up a smaller and smaller portion of your budget.

We took the approach of a flat payment, uh, partially just because on a total dollar basis, that's going to give you the lowest total amount of payments, is just paying us the same amount every year.

However, as we get into it, we can show you examples in our financial model of what it would look like to raise that year over year.

But I think the the clear point here is when evaluating the availability payments, one that escalates over time is naturally going to be lower in the first year because it grows over time.

So when you're looking at just the year one availability payment, ours was flat, not growing, so it's going to appear higher than that other one when in reality it's not.

And and is there a preference?

I really think it's the preference should be yours.

It's uh I think that either one can work for us.

It's just a matter of what works best in your budgetary um standards.

You know, do you want that consistent dollar value?

Okay.

Um describe for me, and again, this is comparing you to what we've heard already.

Um, how would a competitor maybe have a stronger life cycle and handback strategies, which we've read in the report?

Why is that point it out to us that that's stronger than you?

Yeah, you know, I I don't know how that conclusion was was made.

I can only imagine that they were talking again about that availability payment, which over the course of the project, when you looked at ours, it was the highest.

But in terms of life cycle, we've spent a lot of time with styles property management already.

We have a lot of experience on our end developing those profiles, and so you know we are committed to a very transparent process to show you, and there will be decision points as part of that life cycle process as well.

You know, do what level of service do you want the building to have when we hand it back at the end?

And so all of that will be handled during the next phase, and you have a team that is very experienced in doing that.

Uh and my last question, and I appreciate all of this, it's very helpful.

Um, if we decide that even 250 might be too high, and we said 200 million, do you think that at that amount um you would be able to design uh something uh that would work for us even at 200 million?

Absolutely.

We we can design to any budget that you set.

And what would that do to the availability payment?

So back to the you're probably tired of hearing me say indirect cost, but I would just point to the percentages.

So at 200 million, our percentage of indirect cost was so much less than the other teams that there would be between 25 million and ninety million of difference in price.

If we all had a 200 million direct cost, our price would be 25 million to 90 million lower than the rest of the teams based on their indirect cost percentage.

Okay.

And is it really based solely on that indirect cost?

Is it anything else to do like with the contingency and whatever else we saw on that chart?

I believe it was the indirect costs, it was also overhead administrative cost and contingency.

That's right.

I'm I'm kind of lumping all of that into one category separate from the direct costs.

All right.

Thank you for your time.

I appreciate it.

Thank you, Mayor.

Okay.

Commissioner Sorensen.

Thanks, Mayor.

Thank you all.

Appreciate it.

Um why do you think your estimate for direct construction costs was over 130 million more than the lowest?

So our it's clear that looking across the designs that our design is is quite different than the others.

And like we said, this design can be whatever the city wants it to be.

Um, can we develop and build something for significantly less?

Absolutely.

You know, uh, Commissioner Glassman, you asked the question about can this be developed for 200 million dollars, 250 million dollars?

Absolutely.

There's a lot of opportunity here.

At some point you do start sacrificing our original design.

So at a 200 million dollar level, it's it's gonna be a different building.

It's still gonna be beautiful, still gonna function all the ways you expect it to function, especially with input from our property management group.

Um and making helping the city make all the right selections in the building so that over the 30-year term it's being maintained properly, it's gonna last, you know, the durations.

Um but it's clear, you know, our design is different than it than everybody else's design.

Okay, so the design is what is the delta for direct construction costs.

Absolutely.

I would also just add too that you know we've we've done a lot of these interim agreements, and we know that the worst thing we could do is give you a low number now to get to the table, and then nine months from now that price goes up because that's how projects die.

And so our mindset was always let's give a responsible realistic estimate now so that later there's opportunity to bring it down rather than have it move in the other direction.

Okay.

Yeah, and my view, just one person is um whoever we select and whatever they build, it's got to be functional, efficient, and I do not want to scene paying increased amounts for a different design that that's gonna drive up cost just because of a design.

Um thanks.

Uh next is OM.

So your OM, and maybe this is also due to design, I don't know, was about double uh others.

So help me understand that if you could yeah, looking at the chart that was shown, um, the other O and M numbers, I question if those had the lifecycle component in it.

Uh it's a little hard to from the information that we have available, we can't say that.

But our O and M number not only includes the annual just mainstream operations and maintenance, but it's also the lifecycle work that maintains the major systems, the elevators, you know, the mechanical, all of that over the life of the project.

And so again, we took an approach of let's set a responsible budget now, and then we will show you how those numbers can move throughout the process.

Uh you know, none of this is a number that's set in stone now.

Uh but again, I would question if those other numbers could possibly include the lifecycle payments at the levels that they were.

And if I can just add that's the beauty of having styles who's done the development, the construction, and the management, because we collectively work together to ensure that we get the best bang for our buck and that the right decisions are made at the right time to save you money.

Thank you.

And then Cody, question for you.

If I heard you right, looking at availability, so the lowest availability payment out of the four right now is 17.9 million.

If I heard you right, you said you can do this for less than that for a fixed availability.

That availability can be lower based on the overall cost of the construction.

So if we're given a budget to design to, ultimately that availability payment with the financing that we've proposed would be a lower availability payment.

And again, what you're saying your strategic advantage is is the financing mechanism along with the uh low indirect costs.

Correct.

Low indirect cost and lower cost of overhead.

Okay.

Um, and the the the experience and the local experience being the only team that has developed a DB FOM City Hall in the United States.

And which city hall was that?

That was the long um Long Beach?

Long Beach uh City Hall.

Okay.

Thanks.

Um, and I think you you hit on OSHA.

Um the um I get my the design professional negligence with municipal projects, any of that from anyone that we need to be aware of.

Okay.

Great, thanks.

And then um from environmental sustainability standpoint, I think I heard you say aiming for lead gold.

Sure, like the Broad County Supervisor of Elections Office, we just achieved lead gold.

Um, as you can see on the model, obviously this can change throughout design, but we've included a number of different aspects of this model that would be able to help achieve different sustainability goals, solar goals, uh anything that the city wants to set its eyes on as far as reaching sustainability, this team has experience in it, and we're uh ready to do that.

Okay.

Thank you.

Thank you all.

Thanks, Mayor.

Okay, thank you.

Um I have no questions.

They seem to have asked all of them, so uh we're pretty good.

Uh so thank you all for being here today, and uh and now we're going to open the floor up to um public comment and uh and then the city will deliberate that's the same.

Mayor we're gonna have the other teams come back inside.

Absolutely.

They can't.

Yeah, why don't we do that?

Why don't we do that?

Why don't we have them all come back in?

Once they do come back in, I wanted to provide some analysis before we go into the public comment, as we indicated in the run-of-show.

Um why don't we wait until after public comment and you can do your analysis?

Um I want to hear from the public based on what the presenter said.

Will we be able to ask some questions of staff um at some point in time?

Okay, thank you.

We're gonna deliberate.

Thank you.

Yeah.

I just want I would just like public comment first.

Thoughts, Raquel?

Or you you look like you want to say something.

At the appropriate time when permitted, okay.

I will share thoughts.

Okay, great.

Thanks.

May how many of you have signed up for three.

Three.

Okay.

Cool.

Right.

Three.

Ted, Marilyn, and Mary.

All right, folks.

So uh we have three people who sign up to speak.

Uh start with Ted and Sarah, followed by Marilyn Momano, followed by Mary Furti.

If there's anyone else who wishes to speak, please sign up with the clerk in the hallway.

Yeah, try.

D David, can we move the model, please?

Oh, you want to move the model?

Okay, let's just move the model back.

All presentation materials.

Yeah.

Thanks.

Thank you.

Ready.

Go ahead, please.

Hello, my name is Ted and Sarah.

I'm the president of the River Oaks Republic.

My my only thing that I'm bringing to this table is for the cost at police that you know, we have that.

I went to all the presentations of the 88 million for the HUD money.

And I would I asked them specifically at one of their presentations.

Is this money going to be used for City Hall?

Can it be used for City Hall?

And at that meeting, their answer was Who's Day?

Who's they?

Whoever gave from the city on the 11th floor at the uh Okay.

For for the you know, telling the public about it.

Okay.

I don't know what her.

Did you take names?

No, I didn't.

I don't.

No.

I didn't.

You know, I just shoot from the hip.

But uh so but they her answer was absolutely not.

That was her.

So now we have to.

Yeah, it's she was absolutely not.

I don't know what it means.

It wasn't you, Ben, so don't worry about it.

No, I was I was with Susie Bailey.

I remember her name.

But no, but they just said absolutely not.

And uh because I went to Thanksgiving dinner in Edgewood, and uh in the house that I was at, they are still not whole, 100%, you know, ready.

There's still a lot of homes.

This 88 million is supposed to be designed, in my opinion, to go to to help residents fill the gaps of their money, not to build, you know, uh municipal building like City Hall.

Well, do you realize, Ted, that a large portion of that 88 million was secured because of what happened to City Hall?

Well, then why did she answer my question?

I don't I don't know, but I'm just telling you that a significant portion of that 88 million uh made us eligible as uh j because of what happened to City Hall.

Well, I still think you gotta think of the residents, you know.

So we're not saying we're not we're not.

I'm just saying it wasn't intended to be just for homes.

It was intended to help uh rehabilitate uh whatever we were going to you do for our city hall.

So uh because those city hall was never mentioned in any I went to all four things.

I'm just telling you.

Anyway, go ahead.

All right, that's I guess that's really it.

I want to see that money go more in the pockets of residents to help for who to fill gaps of money that they were out of pocket from their FEMA, from insurance, didn't cover everything.

Okay, I understand.

Thank you.

Um, Marilyn Momano.

Congratulations for sitting through this.

Um actually, as an architect and a planner, I've enjoyed myself tremendously here.

I've great work, okay.

You have a bounty of opportunities here.

Uh, but this has essentially been a beauty contest, all right.

Any one of these uh proposers will build you an office building with a city hall component on a nice plaza, with or without a garage, depending on what you want.

Okay.

They will all do it to the lead standard that you want.

They will all make sure that you're safe getting in and out of the building.

They will all have a component for participation of local businesses and local uh workers.

They will all do whatever you tell them to do.

So why don't we get down to the point where you just tell them what to do, okay?

And tell them we're not going more than 250 million, okay, and we want A, B, C, D, E, and F.

And that's what we want, and that's what you're gonna do.

So you're actually picking tonight, I hope not tonight, because I think we're being a little rushed here.

I mean, it's me, Ted, and Mary.

It doesn't mean that other people aren't interested, it just means they're not aware.

So what I'm suggesting to you is two things.

One, you give us a little more time on turn in terms of the public uh digesting some of this information.

Um, and two, that you uh get to the point where you're comfortable with the partner.

And being comfortable with the partner, I think really you've been asking a lot of very important questions.

Questions that you know, I don't think the participate participators should ask.

I think it's a third party.

I think you've got good people in terms of the uh economic analysis, in terms of the construction analysis, you have very good people, and those questions should be asked to them.

Who is the most I mean, who is the most efficient?

Who is the most um uh in terms of the breakdown of their costs, who is got the best combination of costs?

Um so it it's not a question of that building or this building.

It'll be whatever building you want.

But I think you should involve the public a lot more in whatever building you want.

But you all are the responsible parties, don't envy you, you have to set the budget, you have to tell them you gotta meet this, this, this, and this, and whatever group you pick, I mean, you just have to be comfortable with them.

You have to be comfortable that they have been telling you uh that the what they've been telling you is true and complete.

And the only way you're ever going to really know that is to ask the rest of your staff.

Why don't having seen all of these presenters and listened to them?

Why don't you go back and ask the the people who've been representing you, your consultants, what do you think now?

Now that they've made these presentations, because they have contradicted some of the information that you've gotten in those presentations, those are questions you need some time to answer.

You really, I mean, you're good, but you're not good enough to absorb all of this in one sense in one meeting.

And certainly the public has not had uh an opportunity at all to look at it.

I mean, it it dropped on Thanksgiving practically.

So, what's another two weeks?

What's another month to get the public involved in this and to make them understand where we're going?

And one final thought.

Forget about this availability payment business.

Figure it out.

After 30 years, what is this gonna cost?

That's the number that's gonna shock the sensibility of the general public, and that's the number they're gonna be crazy about.

So let's take a little bit more time and make sure that we're getting the best deal, the most uh effective and the most economical deal, and so that when you get down to 30 years and you see what that number is, people are gonna be a little uh more comfortable with it if they've had more time to digest it.

I mean, just let me give you an example, and I I don't want to take up too much more time.

The availability payment that includes the MNO, all right?

That's a 30-year warranty.

It's the same deal we did with the water treatment plan.

Okay, and if people don't have an opportunity to absorb that and understand that that number 30 years down the line, that's including the 30-year warranty.

So, you know, there's a lot of education that will go into this to bring the public along to make them feel that that number is you know, uh uh it's a big number, but it's a number that we would have had to spend anyway if we were operating and maintaining it.

So there's a lot of education, I think that needs to go on.

And any one of these groups who talked about community participation in the next phase in the interim agreement, I think you should pay attention to that.

I think that's very important.

Okay.

It's also very important to to talk about how people have how these uh groups have actually performed.

All right.

So groups that have performed well, creditors credit, give credit with creditors do.

You want you want a group that has performed very well in the city.

Thank you very much.

You're very welcome.

Thank you.

Thank you, Marilyn.

And Marilyn, just tonight, so you know, stay tuned for the uh bathing suit portion of the beauty contest.

It's really incredible.

I always like the part where they ask them, you know, what is your what is your goal in life?

And it's always world peace.

World peace.

Just get ready for the bathing suit competition.

You look like bird parks.

Hi, Mary.

Hi.

Good afternoon.

The idea of building of rebuilding City Hall is one that's been around for a while, even before the flooding that resulted in vacating the building and eventually knocking it down.

And initially it appeared that there would be a community-based process.