8f. Memo Interim Westside Fire Station – Budget Request
COMMISSION AGENDA MEMORANDUM Item No. 8f ACTION ITEM Date of Meeting March 9, 2021 DATE: February 26, 2021 TO: Stephen P. Metruck, Executive Director FROM: Randy Krause, Fire Chief Wayne Grotheer, Director, Aviation Project Management SUBJECT: Interim Westside Fire Station Budget Request (CIP #C800876) Amount of this request: $609,000 Total estimated project cost: $9,788,000 ACTION REQUESTED Request Commission authorization for the Executive Director to increase funding for the Interim Westside Fire Station project, at Seattle-Tacoma International Airport, by $609,000 for a new total project total authorization in the amount of $9,788,000. EXECUTIVE SUMMARY This request is for additional budget for the Interim Westside Fire Station. The construction schedule of the Fire Station has slipped primarily due to the impacts of COVID-19 and differing site conditions found during excavation. As a result of this schedule slippage, additional costs are forecasting beyond the project budget. The project team has forecasted $409,000, of the $609,000 requested, will be required to complete the project. A further $200,000 is requested as contingency for any unexpected future costs. This facility, once thought to have a limited use due to pending development, has been sited where it can remain either as a fire station or other use. JUSTIFICATION Two factors have contributed to the project's cost growth: First, this project was placed on hold through a mutually agreed to, no cost partial suspension of all on-site construction work with the Contractor and the Port of Seattle in response to COVID 19. This moved the Substantial Completion date by 63 days. The second factor was the impact of differing site conditions. Numerous obstacles were uncovered during site and utility excavations. The project was able to cover the direct costs related to the underground obstacles with existing contingency, but unable to cover the full cost Template revised January 10, 2019. COMMISSION AGENDA Action Item No. __8f__ Page 2 of 5 Meeting Date: March 9, 2021 of the delay it caused. The impact of the delay to the project schedule is now resulting in the need for additional budget to cover the increased Port staffing resources for this delay. This suspension along with the impact of the differing site conditions has moved construction into an unfavorable weather window. The Port will continue to emphasize worker safety by requiring the contractor to continue to follow COVID 19 protocols. Substantial completion date is forecast to be May 31, 2021. Most of the project's cost growth has been driven by the need to cover staff's additional time. In order to provide construction inspectors, resident engineers, construction managers, project managers, engineering specialty consultants, security personnel, operational personnel, to manage work around an active airfield, monitor and review contractor submittals, perform quality checks, and manage the program, it is necessary to increase the budget to cover these additional soft costs. The project team is evaluating the project schedule to determine responsibility for each delay. Delays attributable to the contractor will remain the responsibility of the contractor to remedy. Diversity in Contracting The project team worked with the Diversity in Contracting Department to set goals for the Interim Westside Fire Station. To-date, the WMBE utilization for this design-build contract is achieving 39.22%, above the original WMBE aspirational goal of 11%. DETAILS This project will establish a stand-alone, fully functional fire station on the west side of the airfield to meet Federal Aviation Administration (FAA) mandated airfield firefighting requirements. This new fire station will provide necessary accommodations to house firefighters and Aircraft Rescue Fire Fighting (ARFF) vehicles for 24/7/365 operation. This new facility will replace temporary facilities that included a tent structure to cover one rescue vehicle and multiple leased rooms within a nearby hangar that house firefighter quarters in a 'makeshift' or 'make-do' manner. Planning for the future permanent fire station will not require the removal of this facility. Scope of Work The project scope of work has not changed. This project designs and constructs a building to accommodate the necessary living quarters for five (5) firefighters and vehicle bays for the storage of two (2) ARFF vehicles. The building is located directly east of the PACCAR hangar. The living quarters will consist of five (5) bunkrooms, a dayroom, kitchen, restrooms with showers, laundry facilities and an exercise room. Secured entry doors, video conferencing equipment and an emergency response alerting system will be installed. The ARFF vehicle bays include features currently used at the existing fire station such as vehicle exhaust extraction. Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA Action Item No. __8f__ Page 3 of 5 Meeting Date: March 9, 2021 Schedule Construction is anticipated to complete in May 2021. Activity Commission construction authorization Q4 2019 Construction start Q2 2020 In-use date Q3 2021 Cost Breakdown This Request Total Project Design Phase $0 $980,000 Construction Phase $609,000 $8,808,000 Total $609,000 $9,788,000 ALTERNATIVES AND IMPLICATIONS CONSIDERED The project team has evaluated alternatives such as reducing the project scope and determined that they are not viable solutions. Alternative 1 Increase the project budget by the forecasted $409,000 only, excluding the $200,000 contingency. Cost Implications: $409,000 Pros: (1) This will provide funding to cover known and anticipated costs. Cons: (1) This budget amount would not provide contingency to cover unforeseen conditions. This is not the recommended alternative. Alternative 2 Include the $200,000 additional contingency to the project budget for a total budget addition of $609,000. Cost Implications: $609,000. Note: Unspent contingency will be returned after project completion for use in funding other Aviation projects. Pros: (1) This will provide additional contingency of $200,000 in the event unforeseen conditions arise. Cons: (1) This is the highest cost alternative. This is the recommended alternative. Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA Action Item No. __8f__ Page 4 of 5 Meeting Date: March 9, 2021 FINANCIAL IMPLICATIONS Cost Estimate/Authorization Summary Capital Expense Total COST ESTIMATE Original estimate $2,400,000 $0 $2,400,000 Previous changes net $6,744,000 $35,000 $6,779,000 Current change $574,000 $35,000 $609,000 Revised estimate $9,718,000 $70,000 $9,788,000 AUTHORIZATION Previous authorizations $9,144,000 $35,000 $9,179,000 Current request for authorization $574,000 $35,000 $609,000 Total authorizations, including this request $9,718,000 $70,000 $9,788,000 Remaining amount to be authorized $0 $0 $0 Annual Budget Status and Source of Funds This project was included in the 2021 - 2025 capital budget and plan of finance with a budget of $9,144,000. The budget increase of $574,000 has been transferred from the Aeronautical Reserve CIP (C800753) resulting in no net change to the Aviation capital budget. The funding source will be existing revenue bonds. Financial Analysis and Summary Project cost for analysis $9,788,000 Business Unit (BU) Airfield Movement Area Effect on business performance NOI after depreciation will increase due to inclusion of (NOI after depreciation) capital (and operating) costs in airline rate base. IRR/NPV (if relevant) N/A CPE Impact Range depending on economic life (CPE increase in 2022 of $0.15 if 3 years; $0.08 if 6 years; $0.07 if 10 years) Future Revenues and Expenses (Total cost of ownership) Maintenance, utilities and janitorial costs will be incurred, but this amount is not established at this time. ATTACHMENTS TO THIS REQUEST (1) Presentation slides PREVIOUS COMMISSION ACTIONS OR BRIEFINGS October 8, 2019 The Commission authorized a funding increase for this project Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA Action Item No. __8f__ Page 5 of 5 Meeting Date: March 9, 2021 May 28, 2019 The Commission authorized use of a design-build contract for this project. No additional funding was requested. February 27, 2018 The Commission authorized design and construction of this project. Template revised June 27, 2019 (Diversity in Contracting).
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