The Troy Torres Show

Añadido: 2026-05-25

[00:01:20]I have to sorry I have to fix something.

[00:01:23]Now I have to get on this darn sorry something I wasn't supposed to get on the camera. I'm sick.

[00:01:30]I am my camera is not even on hold on.

[00:01:34]But this stupid YouTube thing is all messed up and standby.

[00:01:41]So here's me.

[00:01:42]I wasn't supposed to get on the camera at all tonight. I am so sorry. Hold on. I'm trying to I was supposed to this supposed to be smooth. I was supposed to go straight to the DPW recordings and it's not always going to go wrong with this stupid thing?

[00:02:00]Stand by.

[00:02:02]There, it's fixed now.

[00:02:04]Now we're going to hear it the meeting number two Here we go. All right.

[00:02:10]at all tonight I [snorts] was supposed to this supposed to be I was supposed to be straight to recordings it's not What?

[00:02:29]Wow.

[00:02:31]Really? Yeah. meeting number two Here we go.

[00:02:36]at all tonight I was supposed to this supposed to be I was supposed to be straight to recordings it's not What?

[00:03:00]Here we go.

[00:03:02]at all tonight animals, their dogs, their junk cars their relatives Oh.

[00:03:20]mechanics Okay. All right. Sure.

[00:03:25]Those those are parts.

[00:03:28]That's their Napa store and outside.

[00:03:30]That's right.

[00:03:31]It's worth something someday. Something.

[00:03:34]Someday they're going to need that bolt.

[00:03:36]>> [laughter] >> And you have a you have a Where's your You have a warehouse here or >> have three warehouses.

[00:03:43]One has a 90,000 sq ft.

[00:03:48]Harmon We have about 20,000 square foot.

[00:03:53]And then Communing actually how how many I think 43,500.

[00:04:01]Communing um floor space 18,500 square foot. But the big one is in Okudu. Okudu, that's what I That's what I thought.

[00:04:10]That's where you That's construction.

[00:04:12]Yeah, construction, supplies, material.

[00:04:15]When all your stuff comes in, yeah, that's where you inventory it. Uh it depends on the project. Some goes to Hamon. Uh for military some of the project I use Hamon warehouse.

[00:04:24]>> Yeah. Hamon um we don't really use 100% but >> [clears throat] >> one for hotel.

[00:04:34]One still I think it's still empty.

[00:04:41]That's That's the thing about Guam, you know, depending on the shipping on the price, you got to bring it in and you got to bring it in. But you can't leave it outside.

[00:04:47]>> You can't leave it outside.

[00:04:49]I think I think uh recently one housing project we bought How many container that we bought?

[00:04:57]160 something like that.

[00:05:00]160 That's That's going to be fun to unload.

[00:05:05]>> [laughter] >> We have a side lifter. Yeah? So >> Yeah. Yeah, so we can do it. Yeah.

[00:05:11]Yeah, we have a lot of heavy equipment.

[00:05:13]Yeah, yeah, we were reading.

[00:05:17]How about warehouse? Do you have a lot of warehouse space in there?

[00:05:20]So total uh 90,000 90,000 Yeah, about 150, yeah.

[00:07:44]>> Mhm.

[00:08:58]>> Hi, I just realized that uh the feed stopped on my not on the DPW side, but on my production side. I'm so sorry. I just realized that it stopped at 3 minutes and 19 seconds. Let me try to fix this.

[00:09:13]I think I'm having an issue with the production side here. Stand by, please.

[00:09:18]As I try to fix this issue.

[00:09:21]Let me just move this here.

[00:09:25]Excuse me.

[00:09:27]I'm not feeling well at all. I'm under the weather and so like as I beg your indulgence here.

[00:09:34]As I try to figure with out.

[00:09:39]Of course, it would happen on an important thing like this.

[00:09:43]Okay, let me look back.

[00:09:48]Comes with air Seoul or air Busan. And then uh Korean Air has a Genie Air.

[00:10:37]Tourism Is I mean, they're they're full. They're full.

[00:10:43]And they won't And if they want to come They They cannot come because Korea uh foreign exchange rate is probably around 30 plus percent of value uh reduction.

[00:10:54]Japan, same thing.

[00:10:56]So, because of exchange rate, it's not easy. They don't They don't? They don't. Or or domestic.

[00:11:03]So, they So, Now, the two two money people here.

[00:11:15]>> [laughter] >> So, if we we are actually getting some pretty good PPT from the construction industry.

[00:11:22]We need to use that money to help tourism industry at least until end of next year.

[00:11:30]So, from 2027, I think can definitely reduce the subsidy because aircraft Boeing and and Airbus, they're going to supply most of them delayed. It's 3 to 5 years delay because of COVID and the strike.

[00:11:47]And then once they get their own aircraft as scheduled, then now, as of today, their air supply is a is a seller's market.

[00:11:58]So, airlines, they make a decision because so many destination they want the air supply.

[00:12:04]But once they get all their aircraft inventory down, >> Yeah. then now they're forced to fly out.

[00:12:13]Cuz when they park, there is a charge. Yeah.

[00:12:17]Oh, yeah. Losing money. Yeah. It's about $90,000 per month.

[00:12:21]You know, lease fee. Yeah. And then on top of that, parking fee, so.

[00:12:26]So, we need to help we need some help.

[00:12:29]>> [laughter] >> With GVB?

[00:12:33]But we need some help, too.

[00:12:36]It's very true.

[00:12:37]So, construction, we're going to be doing a lot of projects. We will pay GVB.

[00:12:41]>> [laughter] >> Okay, let's go ahead and start. I think everybody's here, right?

[00:12:46]>> Thank you.

[00:12:46]>> Yeah. Yeah. Um Mr. You know you know everybody here, right? Okay, we don't need to do introductions, right? Maybe if you could just introduce your to your your partners here. Okay. Uh John Won, he's a VP in in pre-construction. Alon, he's in charge of the estimate. He's a chief estimator. Okay. Good morning.

[00:13:03]Good morning, everyone. Good morning.

[00:13:05]Good morning.

[00:13:06]Okay. Thank you. Okay, so that we'll go ahead and get started. Like I said earlier, I hope this doesn't last 3 hours.

[00:13:13]>> [laughter] >> Look at the date, but Yeah, you know we know. Yeah, so. Anyway, so we met last week, right? And and you and as a result of that meeting, you came up with a response in in terms of different pricing and then we've taken a look at that and we have our we have a a little bit of of an issue in terms of of the actual construction funding.

[00:13:41]Yeah, and I think we discussed that a little bit. What does the act specify and what does it say even versus the the RFP that we put out and everything. And so you know we've we've been meeting ourselves as late as yesterday. So we want we want to present our position to you and then then you you you can defend your position as well and then and then I I think depending on where we are probably go back over the weekend and and look at things and then come back again. But you know as I said earlier today you know and as we mentioned the last time we met and we had asked thing of of 16.3 and then um one two What was the last one?

[00:15:01]O&M. Yeah, actual operations and maintenance of the school for the next 30 years. Yeah, yeah. So what I'd like right now is is to turn it over to our finance people.

[00:15:11]They they they they actually had a hand in in the in the in the development of the act and they assisted us with the the RFP and how it came out. I want to I'd like them to explain Okay. uh what what our position is in terms of the the net uh funds for construction and so on and so forth. Yeah. Got you. Thank you.

[00:15:32]So, let's say you want to take it? Sure.

[00:15:34]Um good morning. Good morning. Um >> [clears throat] >> we worked uh Tina and I specifically during the uh public hearing and at the legislature to um get the details that you see in public law 37 last 22.

[00:15:52]Um one of the things that we used was this estimate from TRMA and at the time the uh base bid consisted of uh phase one new campus, classrooms, offices, gym, cafeteria at $119 million.

[00:16:09]And at $15 million for phase two, which is sports fields, uh fencing, uh football field, track, and tennis courts.

[00:16:19]So, that's how you get to the the base bid of 134.

[00:16:22]And then the FF&E was a separate item at $9 million.

[00:16:29]So, what we ended up doing was looking to see how to {quote} solve to be able to get a deposit into the construction fund uh of at least the um $134 million.

[00:16:43]So, we had [clears throat] this number run done in uh February of >> Here's a cap I at the time was $26 million. Then the cost of issuance was 3.3 million and so basically you know the sources and the uses equal and this was run at a rate of about 6.7% back in 2023.

[00:17:42]We subsequently had um the firm Morgan Stanley do another run. This is June 24th of this year.

[00:17:54]Same thing.

[00:17:56]Because the legislation has a financing amount and it's $166 million. So um you've got a smaller premium 143,000. So we're we have 166.5 million.

[00:18:13]The project deposit is 143.5 million.

[00:18:19]Capitalized interest is down to 15.

[00:18:24]Roughly $16 million.

[00:18:26]Cost of issuance $5.6 million and of course the uh underwriters got to get paid. So we're we're at a higher project development fund because the rate also went down almost a full percentage point. So we're we're looking at 5.6%.

[00:18:47]What is the borrowing cost? Wow, that's not realistic at this point. No, this is the this is this is >> 5.6%? 5.6.

[00:18:54]>> Okay. Yeah, this is the June 24th.

[00:18:58]Okay.

[00:18:59]>> So it's not even a month old. So when I was checking the market is probably around 6% 6.2 as of as of now. You know these are very close estimates. We we don't take this um uh like verbatim, but it's a very good planning tool so that you have a good idea of how much money can be secured uh utilizing the parameters in the public law, which basically call for the debt service to be uh uh the par issue amount not to exceed uh $166,365, uh so the the good news is that that range um we're at about $11.7 million in debt service.

[00:19:47]And so um it gives a very comfortable cushion to be able to then allow for uh $3 million, $4 million for the insurance and maintenance. And when you combine those two, so let let's just say we're at 12 million.

[00:20:02]The annual appropriation amount of the not to exceed is 16.3.

[00:20:07]So there's a there's a $4 million ability to provide for uh the maintenance aspect and the insurance for the you know, during the lease back period.

[00:20:18]So um in addition um because the FF&E was uh a separate item uh in the TRMA uh if we're at $143 million for the project fund we need to net out the 1% for the arts, so that's uh $1.66 million.

[00:20:40]And then we need to net out the uh the cost of the FF&E, and we're still going to use the $9 million uh that they have here.

[00:20:48]So the construction costs goes down to $132.9 million.

[00:20:53]And um we uh at your uh in response to uh what you wrote uh basically uh saying that the 166 is construction only, We went back, we looked at the law, then we also um got bond counsel to uh give us uh their view. And their view is consistent with our view that um there are several sections of uh the Makah Act, especially 37 and 22, and I can understand if you read only the the construction portion, you might walk away with with saying that that applies only to the construction, but there are other areas in the law that draw everything back to uh uh a more holistic use of the money uh to include uh the acquisition. And that's uh you know, that's clearly stated for the FF&E. So, the contractor is supposed to be able to uh uh assist in being able to demolish the building, acquire the uh FF&E, uh and then install it later, and uh as well as build the building during the lease period. And then once everything is squared away, the building is done, the FF&E is in, then we we move move to the lease back period. And then the Sanchez community then has the ability to enjoy uh you know, the partnership that we uh really hope to uh continue with uh and get this new school finally built.

[00:22:27]So, um we appreciate uh your uh your your view of what the uh the Makah Act basically uh says, but uh respectfully uh we're firmly of the opinion that this is what we need to do to pursue. Okay.

[00:22:49]So, few things. I don't think we included 1% arts in our design. So, great. That's we can talk about that separately.

[00:23:03]And whether the 5.6 or 6% or that's a market dictation, I can't really speak.

[00:23:11]Correct.

[00:23:12]So, that's a great estimate and positive estimate.

[00:23:16]But let's take a look at the whole picture.

[00:23:19]Um The real key is whether we're going to really cap the the principal amounts at $166 million.

[00:23:28]That's the first thing.

[00:23:30]The basically uh this body would like to basically go back to the legislature and ask them to remove the cap or not.

[00:23:37]That's the first question I think this body needs to decide. That's the first thing. Second thing, uh just clarification. Uh based up on the law that I have read, I think we already discussed it before. The additional rent covering insurance maintenance is not part of the $16.3 million anyway.

[00:23:58]But none of these If the first question is answered that we're not going back to the legislation, then there's a millions.

[00:24:10]Cuz anyway that service is going to be much less than $16.2 million.

[00:24:14]So, if it's much less than $16.2 uh less than kind of round dollars, let us say 11 to 12 12 dollars, then anyway there are some rooms for for insurance and maintenance.

[00:24:27]Whether the insurance maintenance including type and coverage it may go above $16.3 because of the insurance [clears throat] liability from the war and the type in my war so and so and so. So, that's a separate issue, but fundamentally we kind of need to hash out is it really the additional rent will be part of the 16.3 or not.

[00:24:51]The way we read the law, it's very clear. It's outside. It's an additional.

[00:24:55]It's exempt. It's a separate. But but it's it's it's almost a moot point if we don't answer correctly on the 60 166 million dollar principle. So, we need to talk about that. And me personally, it doesn't matter. I'm happy to help as long as you don't ask me, you know, uh Cedric is here on behalf of TRMA.

[00:25:18]When we submitted the 13 years ago or 12 years ago, we had a design with the TRMA. We developed the design together.

[00:25:31]Unfortunately, TRMA was accommodating all stakeholders.

[00:25:37]And we came up I mean they came up with very nice design considering COVID situation so and so and so, high and width.

[00:25:47]So, at we can actually go back.

[00:25:53]I don't know the procurement law. Uh I don't think I can I don't know. drop off GHD at this moment because they were part of the team. But, we can talk to TRMA. Hey, TRMA, can we use our 13 years ago design?

[00:26:12]You wave that. Then we can develop completely different design concept for Simon Sanchez.

[00:26:21]Because the current design is quite expensive.

[00:26:27]Unfortunately, the public law makes reference to that design. Okay. Yeah, it it is specifically stated.

[00:26:33]>> Okay. So, what flexibility do we all have in terms of design?

[00:26:44]If we can agree that um the public law has a cap on the borrowing amount.

[00:26:53]Um that gets us the project development deposit. And if we can agree that the $16.3 million is all in, uh All in including additional rent?

[00:27:04]>> Yes. No, it's not in the law. That's not how it is written.

[00:27:08]Well, you you know, uh we did take your concerns all the way up to bond counsel. And it was consistent with our thinking. And we have a response that basically does >> The way I handle that kind of case, I change the law form. So, >> [laughter] >> very simple.

[00:27:25]Very simple. I think it goes back to what Lester said when we were at the legislature. We presented that the 16 in the discussion in the committee now that the 16 would cover the base and the additional >> Oh, no, we can read the law at this moment. No, but if um the intent at that time was to Okay, so are we going to go back to intent? Are we going to stick to the law? I'm okay.

[00:27:50]I know where I'm okay. It's up to you folks. Yeah? I mean, what what we did was we went down there and gave them the amount that would be necessary to be able to come up to at least $134 million.

[00:28:04]>> Yeah. So, that's how we got to the 166.

[00:28:07]And as Tina mentioned, you know, at the time there was uh an amount in the 16.3 for um insurance and maintenance. Yeah, but the law was actually written decades ago. Yeah, but it was amended.

[00:28:20]So, this is this is the public law.

[00:28:24]And the first eight pages are all scratched out.

[00:28:28]And it went from may use tax-exempt financing to shall use tax-exempt financing. And the only way that you're going to get tax-exempt financing is through Gita.

[00:28:39]Okay. So, yes, this is the bill that was introduced back in uh 2023 and uh you know, there was uh many public hearings. Uh the committee report came out June 15th.

[00:28:56]Uh the governor signed it into law after it was passed by the legislature on July 5th.

[00:29:02]So, we have been working for years and years and years as you have uh to put this uh together and you know, it is a holistic approach.

[00:29:12]It is using a deposit consistent with their estimate at the time of what the base would cost.

[00:29:19]>> I I understand. I understand. I'm not going to get into the detail of the estimate at this moment, but let's just have a at least one clear understanding here. So, are we going to basically stick to the intent of your plan not based upon the law? No, no, no.

[00:29:36]You're I think you're um we are basing it on the law. Not the intent of the law.

[00:29:42]>> Can we Can we simply read the law not to waste anybody's time?

[00:29:45]Sure. Okay. So, let's just read the law in terms of the the maintenance cost.

[00:29:50]In terms of lease back payments, right? The the pertinent part here is is any pledge or reservation authorized hereunder shall be valid. So, and then it goes to the 16.3 mil. Oh, no. I'm talking about the maintenance cost.

[00:30:04]Maintenance cost. It's in the law.

[00:30:05]Utilities and routine maintenance and repair, okay. The contractor shall be responsible for the connection of all utilities including without limitation power, water, sewer, telephone, and cable. You know what? I I actually we already discussed it we were agreed, so I didn't bring the law. I had a law last week.

[00:30:23]So, And and and all and all routine interior and exterior maintenance and repair.

[00:30:28]>> Oh, yeah. Exterior groundskeeping and landscaping. That's much.

[00:30:33]Let's make sure we're reading the same thing.

[00:30:34]>> Yeah. I want to make sure that's Yeah. And if if you actually go to page 358D103 it says DOE is authorized to lease the school property to the contractor for the purposes of facilitating the financing, construction, and everything in this section.

[00:30:52]>> One second. I don't and maintenance. So This is the Listen to me. Contractor and the lease shall provide that all maintenance and use of the premises not described in the former contract at a separate cost.

[00:31:07]Contractor So, maintenance fund 58D 111 I think the key there is not described in the previous subsection. Okay. If anything is not described here, then that'll come in as a separate cost.

[00:31:29]>> 110. Can we put together?

[00:31:32]>> Go ahead. The contractor shall be responsible for the connection of all utilities, including without limitation power, water, sewer, telephone, and cable. That's it. And all routine interior and exterior maintenance and repair, exterior groundskeeping and landscaping, and upkeep of the new Simon Sanchez site.

[00:31:49]>> So, all right. All right. So lessor's point, the government's standpoint all the insurance and maintenance issue shall be part of $16.3 million. Correct.

[00:32:01]Correct.

[00:32:01]>> Okay.

[00:32:02]And then we now need to stick to the concept of TRM A's the design.

[00:32:09]The government design.

[00:32:11]Okay.

[00:32:13]Unless we're going to cut down the building down to half I don't think we can do that.

[00:32:18]>> [clears throat] >> Yeah. So we really need to start from the scratch.

[00:32:28]Um Let's write down what's in here somewhere. Where's the one where it says they have to use the existing design?

[00:32:35]>> uh basically uh high school design shall mean the architectural engineering design procured by the OE in solicitation number RFP 006-2020.

[00:32:45]Okay. Pursuant to public law 34-101 without a firing range.

[00:32:50]So, you know, we're stuck with that.

[00:32:53]Yeah, and and then one more thing.

[00:32:55]Because of typhoon and and and high insurance cost is humongous, millions of dollars.

[00:33:01]Do you want to keep typhoon coverage even though you do have a typhoon shutters?

[00:33:11]I think once we get to the fundamental agreement of um where we are, we can certainly work with you to be able to take um different elements, uh maybe uh address them on a case-by-case and then, you know, kind of whittle around away at uh some of um the costs to see whether or not we can actually get down to the $133 million.

[00:33:37]So, let me get the number straight from you last year. So, total construction cost, what is the maximum that you have? Uh just back of the napkin, um what I was reading a little bit earlier, which basically is uh the project fund deposit uh plus uh taking into account the things that the 1% for the arts and uh Not including the arts. Yeah, so let's separate the arts.

[00:34:06]>> One Well, it [clears throat] has to come from somewhere. Yeah, I understand. I just want to focus on construction because 132.9.

[00:34:14]132.9. Can you write it down? 130. So, that's what we have for the construction.

[00:34:20]>> Yes, sir. Okay. Okay.

[00:34:22]Okay. So, now I need [clears throat] to ask the doctor um when you calculated 2,000 student body.

[00:34:35]Do you calculate 2,000 based up on general classroom or gym and and auditorium, science room?

[00:34:45]All inclusive or just straight forward now you know don't bother >> [clears throat] >> those are special activities. How do you calculate?

[00:34:56]I think we take [clears throat] an actual class size ratio and the number of the number of sections that we'd like we need to have.

[00:35:04]So it you don't take into account the gymnasium because you already have health classrooms. So if there's a classroom need related to that or the theater same thing. They have a classroom and then they have a performance space or a competition space.

[00:35:19]So we don't count those. We count the number of classrooms that we need to have. So general classroom, science it shall be included as a space to count 2,000. Right.

[00:35:29]And then you better ask today now.

[00:35:33]So we have to go back and then recalculate and reduce a certain number of flexible or additional classroom.

[00:35:40]So we can possibly meet the requirement.

[00:35:43]So any questions? So may I So may I just explain further right? So the 132 million construction cost that we're referencing right now that was based off we specifically were anticipating making adjustments for a cost increase that came about you know due to the pandemic and the supply chain issues right? So >> But that was a done about three years ago. Sure sure. And then you know probably about 40% increase from that year. Yeah and so in that time right? So we we had to prepare for that and so basically our we established that 132 million cost was for what we identified as the base bid. Which in general was the uh classroom buildings and the sports facilities. And then so that's a basic bid. And what is additional or additive items?

[00:36:33]>> So then the additive items would be the auditorium. Auditorium. Uh the credit recovery facility. Credit recovery so there's uh credit recovery classrooms.

[00:36:41]What what what what recovery? The credit recovery classrooms. And there's a special like There's like four classrooms. Like a separate separate building at the school. So that's all the different Yeah. So that's your perspective.

[00:36:55]Those additive items is already out of the picture.

[00:37:00]That's the intent of our design. That was the intent of our design and that's what the Yes.

[00:37:04]From the base bid items, the base bid is 132 million. Okay. So So Dr. You're okay with that.

[00:37:13]So I think Yeah. Yeah.

[00:37:17]I'm sorry. It's a trade. It's a trade.

[00:37:20]They're helping our economy.

[00:37:22]One month. So we're helping.

[00:37:24]What is okay? The base amount you estimate is >> So the base bid was for the new campus, basically the buildings and the sports facilities and the associated site work necessary for that, right? Then uh the items that we would be considered additive bid items were the auditorium, uh the multi-purpose field and tennis courts, uh the PV system, the rainwater catchment system, the landscaping plants, irrigation, and site furnishing, and then the credit recovery building. So those items were things that uh based off our design uh and based off our cost estimate were outside So additive items. I just want to make sure that we don't want to go back and forth. So So GDOE's standpoint, we we're now talking about different scope of the facilities.

[00:38:14]So we're going to separate that.

[00:38:16]And I don't want to go back and forth too many times. So we are all okay.

[00:38:20]We're not going to have auditoriums, etc. We need to have an auditorium, but we don't need to have a theater.

[00:38:26]I mean, that you can this could be scaled down. Okay. Okay.

[00:38:30]But but It's not out of the That's not That's outside of the PCF. Right. It's still outside.

[00:38:37]>> Right. But Tiyani is an architect. You know, we work together in many projects, even even currently.

[00:38:44]We know how to partition our relationship, but Tiyani, for sure, is not a contractor.

[00:38:52]So, if you bid, you're going to file a bankruptcy, okay? So, >> [laughter] >> you are safe. You are safe. Stay with architecture.

[00:39:00]>> Which is good. Which is good.

[00:39:02]But but even that even that but you know, you know, it was a 3 years ago, so we get that.

[00:39:09]Most recent project that we submitted a bid for in that fact, the square foot cost was a $2,500 per square $2,500.

[00:39:19]for the building. It's just not not, you know, special building. So, that's reality now.

[00:39:26]So, that's crazy, you know? I can't I cannot I sign off on it, but I cannot believe what I'm doing.

[00:39:32]I mean, that is ridiculous.

[00:39:33]>> per square foot per square foot 2,000 2,500 square >> [clears throat] >> And this this this facility, I think we're looking at 300,000 square feet, right?

[00:39:44]Yeah, a little less than that. Yeah, so.

[00:39:46]So, [clears throat] and we're doing around 40% of the entire Guam market. That means we are obviously the lowest contractor because it's LPTA, lowest price technically acceptable.

[00:39:57]So, our number our our our Shh.

[00:40:03]We we basically sharpen our pencils. So, so, based up on that basic belief, so let's talk about that.

[00:40:12]So, let's say uh we're going to stick your estimate or guestimate.

[00:40:21]We are going to focus on only certain buildings.

[00:40:27]Okay. I think you might need to have a side bar conversation [laughter] before after this meeting.

[00:40:32]So, we're going to have a separate meeting. Yeah, or you can actually send an email so we will understand.

[00:40:38]I'm I'm I'm thinking the same thing.

[00:40:40]>> Yeah. You know, I think the the the two heads need to get together cuz I'm you know, if we have a number here and then we also have a design is can you make that number build that design?

[00:40:51]And to what extent if you can't because obviously there there have to be cutbacks somewhere. You know, there have to be things have to be scaled. And so when working with not just the architect but you know, with a with a the school principal and DOE, the owners the eventual owners of the building. What's going to work for them? That's that that's what we really have to be looking at here. You know, with that type of a uh construction cost of 132.9, I don't know. We're talking significant reductions.

[00:41:22]>> reductions. Huge. I mean, anything is possible. Let me be straight forward. Construction but we're kind of handcuffed in terms of the design requirement is less dimension that it is stick to the original concept. Not it may be exactly 100% of the drawing pages but we have a little bit of flexibility but not much.

[00:41:43]What's the difference between the old design and this design that we are currently My design is much better.

[00:41:51]>> [laughter] >> I mean, but before before we I I like to also point out that, you know, our design and was submitted as is. The programming document allows for the flexibility for your desires of record to make design modifications that are in line with the design intent. Right, so that's something that you also need to keep in mind because perhaps our buildings don't have to be so tall. Right. Like you can cut off some of the height of the building.

[00:42:15]>> Right. That's possible based off our programming document.

[00:42:18]>> Right. And then also there may be certain efficiencies that your designer of record comes up with regarding the mechanical systems. That's quite that's in accordance with our programming document and our designs.

[00:42:31]>> savings there. Not much. But any other places where you guys can identify that that's still something you guys are >> much. The other reason I'm going on for decades and so we didn't do something silly. No, not much.

[00:42:42]>> [laughter] >> Just a matter of the So we're talking about 130 million dollars, right? So we can do that if you unleash me in terms of the design. And if you if you unleash me in terms of the requirement how to count 2,000 student body or you're going to completely reduce down to 1,800 1,700, we can make it happen.

[00:43:26]We can make it happen. For the full record, in order for us to bid this project, to be honest, we gave up on one project in the military which is 250 million dollars.

[00:43:38]For the record.

[00:43:39]And while we're winning ratio probabilities of our 40%.

[00:43:43]So our commitment is still here.

[00:43:48]But but give us a little bit of flexibility with the basic information, then um maybe we can have a meeting if you don't mind.

[00:44:01]Uh next week Friday cuz I'm coming back on Thursday. Unless you guys want to have a Teams meeting that I can join at any time.

[00:44:08]So, wouldn't it be prudent that just have the the architects >> Yes, right after this. the guys, right.

[00:44:16]Right.

[00:44:17]>> Yes, right after this. Yeah. Yeah. Can I suggest that >> Yes, sir. because there's there's in the provision of the RFP to allow for the flexibility realizing that you have your own design builders for your architect and engineers. Got you. Yes.

[00:44:34]The we do when that is two looks. The two looks at the architect 40% and 70% that that's government has to look at which is basically DDOE.

[00:44:43]Right. So, >> [clears throat] >> to avoid I mean, we'll we'll go to that.

[00:44:48]But what I my suggestion is that that instead of inclusive of the architect meeting can we have Sam Sanchez who helped with them sit down with us cuz they understand Oh, yes, absolutely. I mean, they're we're not we don't make any decisions in terms of the final is there. Yeah, DDOE needs to Yeah. So, I've already talked this to to principal Carla and I said if we get to to this point, could we meet with Cortec next Wednesday? So, there is that if you're open to that we want to be open to that, too. We want to be available As long as she recognize that if she doesn't do that if she's not flexible And we we want to see Okay, got it.

[00:45:34]Got it. As long as she Yeah, okay. Got it. Okay. So, even though I'm not here these two two Yes, definitely.

[00:45:41]I mean, we have to work together. Okay.

[00:45:43]And and nothing's going to come out of this meeting Got it. Got it. Can I just suggest just just at at at this level here what kind of design changes can we expect as a and when I say design changes changes to the the original footprint as opposed to these things, right here.

[00:46:04]Yeah.

[00:46:07]If you If you ask me, you know what?

[00:46:11]Never mind what you have what we have.

[00:46:14]Start from scratch and it just get it done. Then I can say, "No problem. I'll do it."

[00:46:19]But because of that reference, Yeah. so we kind of handcuffed somehow, so that we really need to work harder work harder.

[00:46:31]Um but I think it's possible.

[00:46:37]I just feel bad for that which I I sacrificed $250 million project for $130 million.

[00:46:43]But >> [laughter] >> Ouch. Yeah, it's okay.

[00:46:46]It's okay. It happens. It happens. Yeah.

[00:46:49]I I think part of what I'm looking at is, you know, the the architecture rendition has already been out. It's been printed. The kids have seen it. The public has seen it.

[00:47:01]I understand. Are we going to How much are we going to deviate from that? You know, there's some nice walls here that go here. I mean, the facade, the face, it's got presence. The school has presence. You know, how how far are we going to deviate from that?

[00:47:15]And you know, you guys eventually You still have to meet with the Yeah, I think I think we can possibly have a better answer next week Friday.

[00:47:22]Okay.

[00:47:24]Yeah.

[00:47:26]That's That's fair and actually prudent because you just got hit with a tsunami. And you're going to have to figure out whether or not the whole house got flooded or just one room. So, uh it is very incumbent that you kind of take a deep breath and come back and then work with the uh TRMA and Carla and the team from DOE to see what what it is that you could do, like Ben said, in the continuing with this the design spirit um and you know, there there I'm sure there are uh going to be acceptable uh revisions that people uh here can sit with. Again, uh number one, the credit recovery facility, right? Um that's a low-hanging fruit. Um [clears throat] but, you know, there are going to be things that um that are suggested that, you know, just not going to fly. So. Let me let me share some experience. Um I I'm not going to name it.

[00:48:30]There's one architectural firm, actually two architectural firm. One is a 6-ft hallway in the military barracks.

[00:48:39]They put a line on the ceiling, hallway ceiling, both side, just a little groove.

[00:48:47]This width of the groove.

[00:48:50]To make it nice.

[00:48:53]Aesthetic aesthetics.

[00:48:56]Aesthetics.

[00:48:57]You don't know how much it cost. That's the thing. That's my point. How pretty are we going to get as opposed to function?

[00:49:04]>> And then you cannot have a straight line.

[00:49:06]Even if you use metal strip.

[00:49:09]And the second one it's a wall.

[00:49:16]Architect actually made a reveal here and here.

[00:49:20]So, indent, it basically kind of cut it inside.

[00:49:25]>> Mhm. So, you see that groove is inserted, right? No.

[00:49:30]Because of structural calculation it's not inside. From all the way all the wall actually expanded.

[00:49:41]Just to get the the indent. Just get that indent. Yeah. So, you increase the width entire wall for 240 unit.

[00:49:50]So, you have to spend more money on the concrete and rebar.

[00:49:54]Does the end then with uh uh Just just to go with it and don't He didn't draw the line. He asked us to go deeper by this. So, this much we have to expand the width of the Otherwise, you use the structural Yeah. So, that that's kind of like what I'm I'm looking at.

[00:50:09]>> So, when you look for the beauty aesthetics, you got to have a deep parking. Yeah.

[00:50:15]Yeah.

[00:50:15]>> It's a choice. And no different that to that when you were talking about insurance. Yes. Do we Do we Do we get insurance or you know, my thing if we don't need that much insurance if we have good solid windows, double pane, triple pane, maybe even smaller windows. Just regular window with Regular window means the meeting the TPW requirements, which is not regular. Just a one regular. It's a It's strong window, right? As long as you have a type and shutter, then we can protect the building inside from flying object.

[00:50:50]So, in reality, it's so hard to get It's not about the price. It's so hard to get the insurance company to provide. I'll pick this up later because we're looking at typhoon insurance come up with. So, I'll pick this up later, but I think you need to get to the value of the building before we think about the insurance. So, when you've done that, we'll we'll take a look.

[00:51:14]>> Oh, yeah. Yeah, you're correct. But, if we get the job done at 16 I mean 13.

[00:51:24]How much? 132 132 [clears throat] 132.9 It only gives us a few million dollars for additional rent.

[00:51:35]And if you are going to include typhoon policy, this has to go down.

[00:51:40]So, we kind of need to know today.

[00:51:42]Well, Yeah.

[00:51:44]We can't know today. So, why don't you do Go ahead and do what you're going to do and we'll look at the Then then we have to do the two steps. So we're going to go through this practice first and then and once we satisfy and we can talk about additional rent. Yeah, separate. Yeah. Yeah. And we'll look at this at this this issue of typhoon issues holistically. Yeah. A hard to find the insurance company. Really hard to find.

[00:52:13]For example, we are actually negotiating with a GPA regarding solar farm energy.

[00:52:18]GPA has already accepted Kotak Captive as a insurance company.

[00:52:22]Even that they are asking, I'm talking about bond investors, they're asking one year business interruption from the typhoon.

[00:52:32]Yeah, because because we need to get a investors who has no skin in the game, they will never ever take the risk at 6. % yield.

[00:52:44]money.

[00:52:45]Hard to do. Usually two weeks.

[00:52:48]One month, okay. Six months is real stretch.

[00:52:52]Now they want one year.

[00:52:57]So so I know we don't have a business interruption here, but hard to find the insurance company.

[00:53:04]Yeah, I think probably we're going to have to go to a large underwriter, but Yeah. we'll look at that later. Yeah. And when we get this, but this is such a big part of the year. Yes. I don't think we can go until we know exactly. True true we'll go step by step. Okay. Yeah, okay.

[00:53:19]Yeah. So next week Friday, what time would be the best time for for all of you?

[00:53:23]I won't be here. You won't be here?

[00:53:26]I'll I'll I'll be um Do you need to be here?

[00:53:28]>> [laughter] >> I'll be off island, but I I can do a Zoom. I can do a Zoom.

[00:53:33]We can do it right here. Okay. Okay.

[00:53:35]We can all do it Teams or Zoom. Okay.

[00:53:36]You you want to actually post So technical meeting will be done during that during the next week. And then after that we can possibly to save everybody's time since everybody's traveling, we can submit the proposal first.

[00:53:50]So you can have your own internal meeting.

[00:53:52]>> We can submit by next Friday? I think so. I'll be here next Friday. Yeah. And then we don't we look it over all the over the weekend and then maybe meet Monday. Yeah, when you are physically here. Yeah. Okay.

[00:54:05]Right?

[00:54:05]You over here? I won't be physically here. Okay. Well, I'll be with with him.

[00:54:10]You too? The following Monday then you're Do you know what today is for Buckley?

[00:54:14]What what what are you coming back?

[00:54:17]I need I'm I'm coming back. I'll be back Thursday.

[00:54:20]Thursday, so two weeks. You talked about the 28th?

[00:54:24]I'm back on the 30th. All right.

[00:54:28]Yeah. We can always do Zoom, guys.

[00:54:29]>> Okay, we can we can do the Zoom. Yeah.

[00:54:31]So as long as we have something to take take a look at and we have the time to internalize it and get back to I think so. Yeah. Okay. So by Friday you see you'll be We will submit this you'll be you'll submit and then we'll send And then we'll look at the at a meeting Guam time 9:00.

[00:54:47]9:00, so no matter where you guys are at it's going to be afternoon or evening, right? 1:30.

[00:54:53]Yeah.

[00:54:54]Yeah. And you'll be on island. I'll be on island. I'll be on island. Okay, so So this is so I confirm my So what you're suggesting is next week around Wednesday the technical people get together with Simon Sanchez and start those discussions. Right.

[00:55:08]>> After Wednesday you're going to submit the It doesn't have to be Wednesday.

[00:55:11]When do Yeah, you can you can It depends on the schedule you go to. Okay, we can start just having discussions.

[00:55:17]And I'll include I'll include DOE in the correspondence that we have today. We need to consult You know what? I wasted I know you have a lot of people.

[00:55:26]I know.

[00:55:27]But we can we can start corresponding today. I can just summarize what I talked about today. I can summarize that to you and then I'll I'll keep SSFM and DOE on my I'll copy you guys on my email so I think we can start corresponding today so and then >> So maybe we will have a meeting about 30 30 40 minutes right after this meeting.

[00:55:48]Sure. Is that okay?

[00:55:49]>> that's okay. I mean Yeah.

[00:55:50]>> Sure. Without even signing a Sanchez principal, at least we would have some idea first.

[00:55:54]>> Yeah, we can do it. And then we can schedule Yeah, this is going to be technical stuff so Yeah. We wouldn't know what the heck you're talking about.

[00:56:02]>> [laughter] >> Maybe to some extent but yeah, yeah.

[00:56:07]And that's fine with us.

[00:56:09]Okay. Thank you.

[00:56:10]But at least we set up a time the next next week Monday 9:00 a.m. 9:00 a.m.

[00:56:17]It's a holiday. It's a holiday. It's a holiday.

[00:56:21]The following Monday which would be what the 28th? 28th. 28th.

[00:56:26]28th. Okay.

[00:56:28]All right, 28th. Yep.

[00:56:30]Or Tuesday. Tuesday. Tuesday might be better because you need to internalize it. Well, not only that is Friday >> Friday afternoon. Monday would be Sunday.

[00:56:38]Yeah, Tuesday might be better. You got a baseball game or something? No.

[00:56:45]Tuesday what time?

[00:56:50]It's 9:00 a.m.

[00:56:51]9:00 a.m.

[00:56:53]9:00 a.m.

[00:56:54]9:00 10:00 11:00 a.m.

[00:57:00]Same time, please.

[00:57:01]Oh no, that's facing. You spoke. Yeah, we spoke.

[00:57:07]And we can join.

[00:57:08]Yeah. It'll be evening. Yeah. It'll be evening.

[00:57:12]We're fine. No problem. So you going to you going to have a you going to have a dinner?

[00:57:17]>> [laughter] >> Sounds like I'll be all ears. I think we can do both.

[00:57:21]We're really flexible.

[00:57:23]Sounds like a long night.

[00:57:25]>> [laughter] >> Wonderful. Wonderful. Nice meeting you.

[00:57:29]Okay, so we have >> [clears throat] >> something to work on.

[00:57:34]It's a heavy lifting. We appreciate your efforts.

[00:57:40]I can see it's it's sour.

[00:57:42]>> [laughter] >> It hurts.

[00:57:43]>> It hurts?

[00:57:44]No, no, it is what it is, right?

[00:57:46]>> Yeah, it is what it is, yeah, yeah.

[00:57:48]But but we are we appreciate your frankness and openness to to work with us. Thanks. And you know, fortunately, unfortunately, we we we we we have the law to stay with. Okay.

[00:57:59]Yeah, and uh you you know, if things were different, maybe we're okay going back to the legislature, we just don't want to go there. [snorts] It's you know, Not a long-awaited project. I think we have 100% approval here that none of us want to go back to the legislature to see what we can do to build a school for the for the kids. And at least when you know, when one of the things one of the things we did want to accomplish in the meeting is that both sides leave here today with a win.

[00:58:24]That that at least there were were were continuing the talks and there's there's progress hopefully within the next 7 to 10 days. Yes, yes, yes.

[00:58:33]Can we can we bring this issue to Saipan legislature? They are more flexible than Guam.

[00:58:38]>> [laughter] >> Yeah. Other than that, any any final comments?

[00:58:44]>> Good idea. Any final comments? We're good?

[00:58:48]Okay. Thank you, sir. Thank you very much. Yep, yep. We'll be seeing you.

[00:58:51]Yeah, have a good trip.

[00:58:53]Yeah, thanks.

[00:58:56]Yeah, yeah, yeah, yeah.

[00:58:57]Thank you, sir. Thank you.

[00:59:03]Thank you. Thank you. Thank you.

[00:59:09]None of us want to go back to the legislature. Just saying that in a recorded meeting. None of us want to go back to the legislature. We're just going to keep things here.

[00:59:18]Fortunately or unfortunately, this is the law. I mean, this is this is what our top government financial officials are saying behind closed doors.

[00:59:31]Uh that's not even Those aren't even part of my three key takeaways from uh this meeting number two.

[00:59:41]Three highly egregious things that come out of this meeting. Number one is the administration, the governor, the lieutenant governor, their whole sale in this election year is we have to build Simon Sanchez High School. It's been too long. We're going to keep our promise.

[00:59:58]And it's just been too many delays.

[01:00:00]Delay, delay, delay.

[01:00:03]It's very obvious after meeting one and now after meeting two that the delay has been on the administration's side.

[01:00:11]Because this is what should have happened in the first two minutes of meeting one.

[01:00:17]As soon as they realized that the price was above the statutory cap of $166 million.

[01:00:25]Negotiating team should have cut negotiations as the RFP and the law demand.

[01:00:31]And moved on to the next responsive offer.

[01:00:35]The next hour and a half of that meeting would have been spared. They would have moved on to the next offer.

[01:00:43]And if they if they were found to have had a good proposal, I mean they were already found to have a good proposal.

[01:00:51]They were ranked only two points below Core-Tech. So according to the claims made in the protest and the protest appeal, this offerer bid $86 million. In the second meeting, you heard Core-Tech and the government wrangling between 166 and 132.9.

[01:01:12]Which is all of it above $86 million. In the first meeting, you heard them wrangling between 166 and 196.

[01:01:20]196 was the price that Core-Tech came into with the with a 30 million value engineering which was an option which is forbidden by the RFP.

[01:01:30]Went against the rules so on two different things the evaluation committee should have deemed Corteccia non-responsive and cut negotiations but Vince Ariola did not.

[01:01:42]All you heard Vince Ariola doing the director of public works throughout meeting one and meeting two is laughing at all of Hoyun's jokes.

[01:01:51]And agreeing with almost everything that Hoyun was saying. You heard Lester Carlson at the very least being firm, sticking to his guns about what the law said and his conversation with bond counsel. You heard that in meeting two. But here's where the administration continued to waste our time. Continued to delay this project.

[01:02:18]In meeting two very obvious throughout in the entirety of meeting two that Corteccia bid on something they didn't know the and the entire project scope.

[01:02:31]How did they put an offer in without understanding that the park construction amount wasn't 166, it was 132.9.

[01:02:47]And how was their offer ranked higher than the other person than the other is it GP General Pacific Services if obviously in this meeting they didn't even know that the construction costs was only 132.9.

[01:03:05]And not only did they offer to build for above the statutory cap of 166 point whatever that was, they went all the way to 196. So if they didn't know the full scope of what it is that they were supposed to be doing, how were they responsive to the RFP then by the second meeting?

[01:03:28]If for whatever reason they decided not to deem them non-responsive in the first meeting, in the second meeting was very clear that they didn't know what they bid on.

[01:03:39]And they should have cut the negotiations there and went on to the next offer or the next responsive offer. That was the second egregious thing. And the third egregious thing, I don't know if any of you caught it, it happened it was a very quick conversation and it was Ed Byrne, the director of administration, who offered that, you know, the government of Guam is looking at government-wide insurance and let's just include that.

[01:04:08]Did you tell the other proposers or offerers that the government of Guam was just going to absorb that cost anyway, so you don't have to put that into your proposal?

[01:04:20]Through and through and we're only on meeting two and there's a meeting three that happened uh but there's no recording because according to Joe Duenas with the construction manager something in the cloud that that that the cloud something and the meeting uh recording got lost but there is an AI transcription according to Senator Chris Barnett in meeting minutes there were strikethroughs in different areas like someone struck through something that was actually said and it's just crazy wild stuff that this is definitely a procurement that must be canceled and absolutely redone. Uh and so, tomorrow so tomorrow morning we'll have the as long as I'm not super sick as long as I'm not super sick we'll have the morning news analysis on the Wednesday news analysis and we'll talk about we'll continue to talk about this issue but that at at 8:30 a.m. in the middle of the Wednesday news analysis we'll switch right over to special session that continues at 8:30 in the morning tomorrow. And then of course we'll have the Troy Torres show at 7:30 p.m. tonight tomorrow night which will be the will play the this one's going to be a video file actually video or meeting four and meeting five were video so you're going to get to watch the meeting four of the negotiations. For Candid News I'm Troy Torres you all have a beautiful evening. God bless you and pray for me that I get well. Bye.