Hayward Police Department Year-End Report
1 Public Safety Center:
Project Updates, Recommendations &
Presentation on Public-Private Partnership
October 6, 2026
Hayward Police Department Year-End Report
2 Project Need
• Public Safety Center (PSC)
constructed in 1975 with 110 employees and now includes approximately three times as many employees • Building is old and functionally
obsolete
• Building and parking areas are
not even close to meeting current needs
Hayward Police Department Year-End Report
3 Programming & Space Needs
Anticipated Growth through 2050
91,000 gsf essential services building (public space, space for admin & all PD divisions, crime lab, dispatch, temporary holding cell, and shared staff areas) 30,000 gsf non-essential services building (K9 training, special response unit, property & evidence, indoor range) 29,000 gsf animal services building 100-yard outdoor range Tactical Simulation Building Parking Hayward Police Department Year-End Report
4 Cost Estimate
City Center SiteCANG Site
$30M***$53M
Site Development
(demo, hardscape,
landscape, utilities)
$242M$212M Buildings & Parking Structure
$80M$72MSoft Cost
$352M$337MProject Total
***City Center Site does not include the Outdoor Range and Tactical Simulation Building Hayward Police Department Year-End Report
5 Cost Estimate - Prioritization to Reduce Cost
Current: To remain where it is; future phase or alternate site required for replacement facilityDeferred to future phaseDeferred to future phase Workstation spaces reduced, functionality maintainedReduced public lobby space and removed one community meeting room Reduced indoor firearms range from 50yd to 25 yd. 100yd outdoor range included at CANG site with a four lane 50yd outdoor range for a future phase Reduced workstations, drying cabinets and evidence lockers Reduced storage space, kitchen size and number of cells from 49 to 35 people Reduced exam bay from 2 to 1
No dedicated briefing roomReduced size of the break room and dispatch consoles from 16 to 14 No overflow counseling rooms, waiting room, dedicated breakroom Hayward Police Department Year-End Report
6 Cost Estimate - Prioritization to Reduce Cost
ORIGINAL PROGRAMMING
City Center SiteCANG Site
$30M$53M
Site Development
(demo, hardscape,
landscape, utilities)
$242M$212M Buildings & Parking Structure
$80M$72MSoft Cost
$352M$337MProject Total
PRIORITIZED PROGRAMMING
$259M$247MProject Total
Hayward Police Department Year-End Report
7 Site Analysis
Site Option BFormer City HallCity Center
Site Option AWest Winton
Avenue at the Airport
Current Location of HPD on West Winton Avenue
Hayward Police Department Year-End Report
8 Site Analysis – Option A
Hayward Police Department Year-End Report
9 Site Analysis- Option B
Hayward Police Department Year-End Report
10 Site Recommendation
Hayward Police Department Year-End Report
11 8/26/26 CIAC Feedback
Voted to recommend CANG Site to full Council Recommended for further consideration:
Prioritize YFSB spaces Prioritize Animal Services new facility Include Public Spaces Commented on Public-Private Partnership Education
Alternative Delivery for
Public Safety Infrastructure
City of Hayward, CA
October 6, 2026
Presenters
13 Diana RamirezSr. Advisor for Public Sector Engagement & ProgrammingAIAI Jon KindrachukConstruction Manager & Public Sector LeaderPCL Construction Services Inc.
Orion FultonAmericas Sustainable Development Leadership ChairARUP Elizabeth (Liz) CousinsChair, Infrastructure GroupNossaman LLP What is a Public-Private Partnership?
P3 is a delivery method that offers best value to the taxpayer through risk transfer.It’s a contractual agreement between a public agency and a private entity that allows for greater private sector participation in the life cycle performance of the asset. Generally, a P3 is considered to include long-term capital and financing as part of a Design-Build-FinanceOperate-Maintain (DBFOM) contract structure or a monetization transaction.
However, social infrastructure P3 transactions are becoming much more tailored to only include financing scope as a bridge to permanent muni-financing when tax revenues that the development generates can be financed with traditional tax or revenue backed permanent financing.Similarly, operations and maintenance is included when government lacks sufficient near-term expertise and capacity to stabilize the asset and wants to transfer the risk of asset performance (including revenue). 14 Delivery Methods
Public Sector
Private Sector
Private FinancePublic Finance
Segmented Procurement Packages
Integrated Procurement Package
DBB
DB
Outsourcing DBOM
DBFOM
DBFOM AP
DBF Increasing Risk Transfer
DBFM
D = DesignB = BuildF = FinanceO = OperateM = MaintainAP = Availability PaymentDBB = Design, Bid, Build 15 Basic P3 Structure
16 A P3 is:
A DESIGN AND CONTRUCTION, FINANCING, OPERATIONS AND MAINTENANCE PARTNERSHIP – the public sector enters into a long-term contract with the private sector to deliver assets and services for the benefit of the general publicA RISK SHARING APPROACH – the private sector assumes key financial, technical and operational risks, while the public sector sets policy and retains ownership A LIFECYCLE PROCUREMENT APPROACH THAT GUARANTEES PERFORMANCE – by integrating design, construction, and financing with operations and maintenance, the asset performance is optimized for the long termA TRANSPARENT RELATIONSHIP – the owner creates the control parameters during procurement and retains ownership of the project. 17 A REAL ESTATE TRANSACTION - the
private entity enters into a performancebased contract for infrastructure with financial penalties imposed by the public agency if availability and quality standards are not met THE RIGHT SOLUTION FOR EVERY PROJECT- a value-for-money analysis should be performed by experienced legal, technical and financial advisors to determine if a P3 approach is right for the project.
A P3 is NOT:
PRIVATIZATION - the public sector retains ownership and ultimate control of the public asset A FUNDING SOLUTION - the
government agency gains access to private financing options which may not be available in regular public procurement, but the project must still be creditworthy 18 Rationale For Using P3s
Value for Money Savings
• Optimal allocation of risks.• Design and construction efficiencies.• Focus on whole life cycle costs and preventive maintenance.Cash Flow Management• Private financing reduces demands on the public’s bonding capacity, freeing up government funds for other vitally needed public services until bonding capacity is available for nonrevenue generating assets. • Public payments often begin when construction is complete, reducing upfront financing costs and incentivizing an accelerated completion schedule.
Performance is incentivized• Payment is contingent on performance: on-time and on-budget delivery and long-term performance of the asset.
Risk Transfer• P3 structures relieve the public sector from the risks of short-and long-term cost overruns. Guarantees quality of maintenance.
• Highly complex projects especially benefit from this approach.Timetable Benefits• Slightly longer preparation period but more certainty on completion leading to shorter overall time to completion.
• Timetable driven by private finance team (not dependent on County’s internal finance resources and completing deliverables).
Innovation
• P3s encourage the use of cutting-edge technologies—such as new technology and energy-efficient systems—by giving private partners the flexibility and incentive to innovate beyond conventional public procurement limitations. • With long-term responsibility for operations and maintenance, private partners design with durability, efficiency, and adaptability in mind—leading to more resilient and forward-thinking infrastructure solutions. 19 Benefits of a P3
SCHEDULE DISCIPLINEBUDGET CERTAINTYCOST SAVINGSGREATER INNOVATIONLIFE-CYCLE MAINTENANCE
ACCELERATED DELIVERY
PUBLIC OWNERSHIP & CONTROL
EFFECTIVE RISK TRANSFER
JOB CREATION
PAYMENT FOR PERFORMANCE/ACCOUNTABILITY
20 The top ten critical factors to address when procuring a P3
1. VISION2. CHAMPION3. COMMITMENT4. COMMUNITY5. COMMUNICATION6. FUNDING7. EXPERIENCE8. STAFF/TIME9. VALUE10. INNOVATION 21 Value for Money
Value for Money (VfM) analysis is a process used to compare the financial impacts of a P3 project against traditional public delivery alternatives.The process to establish VfM includes:Creating a Public Sector Comparator (PSC), which estimates the whole-life cost of carrying out the project through a traditional approach;Estimating the whole-life cost of the P3 alternative (either as proposed by a private bidder or a hypothetical “shadow bid” at the pre-procurement stage); andComparing results.
Value for Money is an industry-accepted decision driver as the business case for elected officials. However, the specific approach can vary by owner and by project and the timing can be after developer selection and predevelopment collaboration prior to financial close and making a financial commitment to the project.
Public Sector
Comparator
Public-Private
Partnership
Ancillary Cost
Retained Risk*
Financing Cost
Base Cost
Value for Money Example
Value for
Money
* During construction and throughout lifecycle
22 • Define the Strategic Vision
• Clear Project Definition: scope, performance outcomes, and desired public benefits• Conduct Rigorous Project Preparation• Political and Stakeholder Alignment: Internal and external buy-in to avoid derailments• Develop a Transparent, Competitive Procurement Process• Legal Authority: Confirm enabling legislation and procurement pathways (e.g., LGC 271.908)• Market Sounding: Engage industry early to test market interest and calibrate risk• Public Sector Capacity: Assign internal leads, bring on advisors, use decision gates• Craft Robust, Performance-Based Contracts• Align Financing Strategies• Plan for Oversight and Long-Term Stewardship 23 Laying the Foundation for a Successful P3
Recommended approach to move forward
• Complete environmental, geotechnical,
utility, FAA, and entitlement due diligence activities
• Refine project scope, phasing strategy,
cost estimates and key risks
Engage Further Consultants• Engage technical and financial consultants as appropriate. Take into consideration the advisors’ advice but retain the role of decision-maker and providing the voice for the agency.
Early Private Sector Engagement• Conduct market outreach to seek market feedback on optimum procurement timing and features and to test market interest prior to formal procurement • Early discussion on risk and procurement
structure can test if City’s assumptions match-up with the industry perceptions. 24 Continue City Preparatory Activities• Advance funding and financing planning while evaluating legal authority and potential P3 structures What is a PDA Procurement?
25 • Developer team selected largely on qualifications but can include other criteria such as concept design, price factors etc.
• After selection and upon completion of negotiations, a Predevelopment Agreement (PDA) is executed
• The team works closely with the City to advance design, pricing, risk allocation and other project elements
• These typically include a multiphase approach with 3 phases:
1. Feasibility determination2. Advancement of environmental, design, pricing, risk allocation, etc.3. Implementation What is a PDA Procurement (cont.)?
26 • Financing structure is developed in parallel with the evolution of the design and other project elements
• Design is advanced to 60% +/- and costs, risk allocation, etc. are negotiated through an open book process – resulting in a fixed price, lump sum price
• The PDA phase is intended to determine whether the project is feasible, bankable, entitled, and aligned with public objectives before either party commits substantial development capital or enters into a long-term Implementation Agreement • Upon successful negotiations, a public-private-partnership (P3) or other Implementation Agreement is executed, financial close is reached, and project execution moves forward • A predevelopment P3 approach may allow the City to advance the project before all capital funding is available
• A predevelopment P3 approach can provide financing flexibility, greater cost and schedule certainty, and meaningful risk transfer, but requires a more complex procurement process and acceptance of reduced direct control over project delivery Fixed Price P3 Procurement
PDA / Progressive P3 Procurement
Developer
Selected Developer Selected
Fixed Price vs PDA Procurements
27 P3 CASE STUDIES
BUILDING PROGRESS
2 Potrero Yard Modernization ProjectSAN FRANCISCO, CA
Owner San Francisco Municipal Transportation AgencyValue $735.54 MillionFinancial Close April 2026Delivery Structure Progressive Design-Build-FinanceProject Scope The SFMTA Potrero Yard Modernization Project will replace the 110-year-old yard with a larger, seismically resilient electric bus facility, expand capacity, support green transit, and enable affordable housing as part of a broader modernization program.The project will allow the agency to repair buses faster and accommodate 68% more buses at the yard, ensuring the fleet can grow and result in shorter wait times and less crowded buses for riders. The yard will be the central hub for the agency’s zero emission trolley bus fleet. The trolley buses do not generate direct or indirect particulate emissions.In addition, the project’s design allows the agency to accommodate up to 100 units of affordable housing at the project site as well as opportunities for commercial retail and concessions as a second phase of the project, pending funding availability.Public amenities such as large-scale public art pieces, improved pedestrian and bike infrastructure, spaces for street vendors, and public restrooms are also included in the project to provide a human-scaled streetscape.Design to construction completion timeline: November 2022 (design starts under predevelopment agreement) – May 2030Financing Instrument: California Municipal Finance Authority Revenue Bonds P3 CASE STUDY
29 UC Merced Campus Expansion
MERCED, CA
Owner University of California, MercedValue $1,300 MillionFinancial Close August 2016Delivery Structure 39-year Availability-Based DBFOMProject Scope The UC Merced 2020 Project is a 1.2 million gross-square-foot campus expansion and redevelopment project on the UC Merced campus. The expansion was complete in 2020 and nearly doubled the campus’ physical capacity.The project was the first in the UC system to use a single private development team for a multi-year, multi-building project of this scope. The project involved the design and construction all of the new facilities as a single, fast-track project, but also includes major building systems operations over the 39-year term of the contract.To accommodate changing needs over time, the design and construction approaches are flexible and highly adaptable, helping the campus achieve long-term life-cycle and sustainability goals. .In line with the University’s sustainability goals all buildings will be a certified LEED Gold minimum. The design includes a robust approach to storm water management and aquifer recharge. These design considerations are consistent with the University’s goal of reaching triple net zero.Design to construction completion timeline: September 2016– September 2020Financing Instrument: Senior Secured Private Placement Debt P3 CASE STUDY
30 Long Beach Civic Center Redevelopment
LOS ANGELES, CA
Owner City of Long BeachValue $520 millionFinancial Close April 2016Delivery Structure 40-yr hybrid DBFOMProject Team Equity: Fengate, PCL Investments USA Design-Builder: PCL ConstructionO&M: Johnson Controls, Inc.
The Challenge: The project will revitalize the heart of downtown Long Beach with new civic and commercial elements, bringing the Port of Long Beach downtown and adding 1,000 new residents to breathe new life into a historic and cherished part of the City’s core. Finally, the project will result in over $1.0 million in annual taxes that will flow directly the City of Long Beach.The Solution: The project replaced seismically unsafe, maintenance-plagued structures with new resilient and energy-efficient civic buildings. The project also featured roadway and pedestrian improvements, with public plazas and pathways connecting the four civic buildings and offering a vibrant civic hub that infused new life and around-the-clock activity into downtown Long Beach. The project boosted economic impact in the area, creating an estimated 8,000 new jobs and generating over $1.3 billion in economic impacts. The Outcome: Design to construction completion timeline: 3 years How was the project paid for? Taxable Private Placement and short-term construction financing.
P3 CASE STUDY
31 Long Beach Courthouse
LOS ANGELES, CA
Owner California Administrative Office of the CourtsValue $495 millionFinancial Close December 2010Delivery Structure 35-yr Availability-Based DBFOMProject Team Equity: Meridiam Infrastructure Design-Builder: Clark ConstructionO&M: Johnson Controls, Inc.
The Challenge: Replacement of an old building in poor condition, which presented health and safety risks to the public and those working in the courthouse. A modern, spacious and energy efficient building opened in 2013 and continues to serve the public. It accommodates 600 employees and up to 4,500 visitors daily. The project helps to achieve local sustainability goals reflected in the Leadership in Energy and Environmental Design (LEED) Gold certification, which exceeds the contractual requirement by one level.The Solution: Governor George Deukmejian Courthouse is a five-story, 544,000-square-foot building featuring 31 courtrooms. It also houses court administration offices, Los Angeles County lease space, and commercial and retail leasable space. There are public amenities including a large secured courtyard with fountains, a food court, and a convenience store. It also includes secure below-grade inmate transfer facilities, detention facilities, and parking areas for judges.The Outcome: Design to construction completion timeline: 3 years How was the project paid for? Senior Secured Private Placement Debt.
P3 CASE STUDY
32 Hayward Police Department Year-End Report
33 Next Steps & Recommendations
Entitlement
Zoning FAA release Environmental study
Delivery method
Market sounding survey
Recommendations:
Proceed with CANG site, entitlement, market
sounding survey
Hayward Police Department Year-End Report
34 Questions and Feedback
Additional Information
What is the Association for Improvement of American Infrastructure (AIAI)? AIAI is an action-driven, member-led non-profit organization made up of the leading minds in the industry, dedicated to moving comprehensive and innovative infrastructure delivery approaches forward and strengthening American infrastructure.Our mission is two-fold: facilitate education among the public sector and advance legislation through targeted advocacy. Weseek to provide civic leaders with the knowledge they need to make informed decisions about the benefits of public-privatepartnerships, such as economic development, life cycle cost savings, risk transfer and accelerated project delivery.Member participation includes:• A platform for education and collaboration• Executive roundtable discussions• Legislative support• Comprehensive Delivery education• State and local advocacy • Virtual workshops• Webinars• In Person Workshops• Bootcamps• Comprehensive Delivery Certification 36 S T E P 01
8 Instructional Modules
Participate in virtual
instructional sessions on
Thursdays
S T E P 0 2
3 C a s e S t u d i e s S e ssi o ns
Engage in applied learning
and real-world scenarios
S T E P 0 3
Final E x a m
Complete the online final
examination
S T E P 0 4
S u b m i t
Assessments +Final exam
submission
S T E P 0 5
Graduation
Official ceremony
for 2026 Cohort:
Sep 30 – Oct 1
Are you P3
Certifiable?
https://aiai.talentlms.com/Questions? Contact us at: [email protected] AIAI’s P3 Certification program is IACET accredited! Designed for public-sector professionals seeking a comprehensive understanding of Public-Private Partnerships (P3s) Next Cohort
November 2026 – April 2027
37 Run by public sector P3 experts, P3Direct is a program implemented by AIAI for the public sector as a means to create a connection between experienced P3 professionals and those looking to gain more information on the P3 procurement model across agencies at every level. P3Direct provides an opportunity for public officials to both engage with P3 experts and share their experiences. The program encourages an understanding of the model, and collaboration of agencies to promote best practices and share lessons learned and success stories around P3s.516.277.2950 | [email protected] | www.aiai-infra.org 38 Delivery options are defined by risk transfer and private sector involvement.
Risk Transfer Increases to the Private Sector
Traditional Government Projects
Alternative Delivery Options
Design Bid Build
DesignBuild(DB)
DesignBuildFinanceMaintain(DBFM)
Design BuildFinanceOperate Maintain(DBFOM)
Design BuildFinance(DBF)or Progressive P3
DesignBuildOwn Operate
CM at Risk
39 Alternative Delivery Continuum
P3s Are Not Free Money
A P3 is a project delivery method that provides greater risk transfer for delivery of infrastructure than traditional methods - not a funding approach. Private financing and equity must be repaid. A funding/revenue stream must be in place and be “marketable” to ensure a viable P3.Funding is the input (or sources) and determines the affordability of the project. Financing is the output (and component of the uses), and value for money is measured by the WACC (Weighted Average Cost of Capital) against the risk transfer and increased speed of delivery that it may provide. 40 What's the Cheapest Cost of
Financing?
The cost of financing an infrastructure project privately is roughly equal to the cost of financing it publicly after factoring in the costs associated with the risk of losses (overruns, delays etc.) from the project, which taxpayers ultimately bear.Congressional Budget Office, Jan. 2020 41 Download a Copy:
42 DEMAND
RISK
Revenue
(Sources)
Transparency for Taxpayers: Buckets of Risk
LIFECYCLE
RISK
THREE THINGS YOU CAN DO WITH RISK – Retain, Transfer, Mitigate
COUNTERPARTY
RISK
Creditworthiness
Appropriations
COMPLETION
RISK
Design
Cost
Schedule
Site Conditions
Land Acquisition
Entitlement
Permitting/Environmental
DEVELOPMENT
RISK
Maintenance/Repair
Energy Sources
43 44
Risk Transfer by Delivery Method
• Contracting Models: Availability payment vs. revenue risk vs. hybrid models • Risk Allocation: Assign risk to the party best able to manage it (design, construction, revenue, O&M)• Performance Standards: Tie payment to performance and long-term outcomes• Revenue Model: Understand user-fees vs. public-backed revenue streams• Contingency Planning: Plan for off-ramps, lifecycle adjustments, and dispute mechanisms• Establish contract management team to provide oversight over the life of the contract 45 Aligning Incentives, Managing Risk on P3 Projects
Optimum VfM
Risk
Value for Money
Optimum VfM
Risk transfer is akin to buying
insurance and has a cost
Undertransfer destroys value
and Overtransfer destroys
value
46 Timing of VfM Analysis
A VFM analysis generally begins after the environmental permitting process is well underway. As a “sanity check” risk workshops and market soundings occur prior to starting the actual procurement process. Environmental
permittingprocess
Risk Workshops
are held to identify major project risksand determine their allocation Industry Forum and
One-on-One meetings with potential bidders
RFQ Released with
draft agreements
Preferred Bidder PDA executed with fixed
budget, schedule, and scope
ATCs/AFCs Briefings and presentations
with stakeholders including utilities
Construction
begins
Feasibility Study/Value for
Money Report is completed to investigate all Projectoptions Market
Soundings
Industry
Outreach
RFQ RFCs SOQ Submittals
and Interviews
PDA activities VFM confirmed
Commercial and
Financial Close
47 Getting started
Managing ConsultantsRemain in control of the process. Take into consideration the advisors’ advice but retain the role of decision-maker and providing the voice for the agency. Owners should be comfortable with seeking additional input if their advisors make recommendations that are new or foreign to the usual processes.Aligning Public and Private IncentivesGoals and incentives for all parties must be aligned for a successful project. This can be achieved through honest negotiations and communication between all parties.The private partner should be motivated to deliver and manage a quality project.
Early Private Sector EngagementMarket sounding should begin before ideas are fully set, but after some initial planning.Early discussion on risk can test if assumptions match-up with the industry perceptions.Political Support A political champion is required to help guide the project through key points.The owner should ensure that a key political advocate(s) is deeply engaged in the project and can help guide these sensitive issues to assist with ensuring buy-in from local business leaders. 48 Ensuring competition
How do you become attractive to the private sector? How do you share your story and attract competition? One of the key drivers for the successful development of a P3 project is a well-defined, properly structured procurement process that encourages private sector companies to bring forward their best people and ideas. 49 • Define the Strategic Vision
• Clear Project Definition: scope, performance outcomes, and desired public benefits• Conduct Rigorous Project Preparation• Political and Stakeholder Alignment: Internal and external buy-in to avoid derailments• Develop a Transparent, Competitive Procurement Process• Legal Authority: Confirm enabling legislation and procurement pathways (e.g., LGC 271.908)• Market Sounding: Engage industry early to test market interest and calibrate risk• Public Sector Capacity: Assign internal leads, bring on advisors, use decision gates• Craft Robust, Performance-Based Contracts• Align Financing Strategies• Plan for Oversight and Long-Term Stewardship 50 Laying the Foundation for a Successful P3
• Transparency and Fairness: Clear evaluation criteria, conflict-of-interest policies • Shortlisting & Competitive Dialogue: Drive value and innovation in pre-development• Output Specifications: Focus on performance outcomes, not how-to instructions• Timeline Discipline: Set realistic milestones, enforce deadlines• Debriefs: Provide feedback to unsuccessful bidders to maintain market confidence 51 Proven Procurement Practices
The Procurement Process
One of the key drivers for the successful development of a P3 project is a defined, properly structured procurement process that encourages private sector companies to bring forward their best people and ideas. The key stages of the procurement process include:
ISSUE RFQ (with DRAFT AGREEMENTS)
SELECT QUALIFIED BIDDERS
ISSUE RFP (with AMENDED AGREEMENTS)
SELECT PREFERRED BIDDER (then EXCLUSIVE NEGOTIATIONS)
FINANCIAL CLOSE
RFQ document issued inviting teams to submit qualification credentials Shortlisted teams chosen based on qualification criteria RFP documents released including project agreement and technical requirements Preferred bidder chosen based on evaluation criteria included in RFP Preferred bidder executes project documents (commercial close) and closes project financing
PREPARE FOR PROCUREMENT
Define the project to be procured, preliminary performance metrics/payment mechanism, and preliminary draft of project agreement/technical requirements.
P3 Only
52 Difference in procurement approaches and impact on Life-Cycle considerations All• Contract Management: Dedicated team to monitor milestones, compliance, reporting• Change Orders & Disputes: Use of Dispute Resolution Boards, formal change protocolsP3s• Performance Monitoring: KPIs, reporting dashboards, independent inspections• Lifecycle Maintenance: Ensure O&M and Handback provisions are enforceable• Adaptability: Anticipate project evolution—especially in long-term concessions 53 Managing Through the Lifecycle
• Post-Mortems: Capture and share lessons learned
• Knowledge Management: Build internal systems to retain institutional knowledge• Internal Champions: Train a core group to lead and replicate successes• Continuous Market Engagement: Keep communication channels open with industry• Portfolio Thinking: Structure programs—not just projects—to build consistency 54 Keys to Long-Term Success