8f. Memo
Primary Fire Station Construction Authorization
COMMISSION AGENDA MEMORANDUM Item No. 8f ACTION ITEM Date of Meeting May 28, 2024 DATE : May 20, 2024 TO: Stephen P. Metruck, Executive Director FROM: Wendy Reiter, Director, Airport Security Eileen Francisco, Director, Aviation Project Management SUBJECT: Primary Fire Station Early Work Package and Construction Authorization (CIP #C801256) Amount of this request: $6,700,000 Total estimated project cost: $29,922,000 ACTION REQUESTED Request Commission authorization for the Executive Director to (1) authorize enabling construction work for the Primary Fire Station project and (2) procure long lead items. The total request for this action is $6,700,000 for a total authorized budget of $14,000,000. Remai ning budget to be authorized is $15,922,000 for a total project budget of $29,922,000. EXECUTIVE SUMMARY Station 1, the Airport’s primary fire station (also known as the Aircraft Rescue and Fire Fighting or ARFF facility), supports an essential life-safety function for the Airport: providing space for the Airport’s first responder Firefighters to work and live while on duty.The project will ensure that these Firefighters are given a facility that supports their ability to perform at their best and deliver the facility now rather than extending deferment for a facility that will be built in the future. This request is to authorize funding for the construction of enabling work to improve the project schedule and shift the work associated with the solarium roof into more favorable weather condition months. The enabling work will involve moving the fire fighters into two construction trailers placed inside the North apparatus bay which will serve as the temporary dormitories during construction of the new dormitories within the fire station. The full program would provide needed updates to improve working and living conditions. The updates include improvements to the station’s Heating Ventilating and Air Conditioning (HVAC) systems, improvements to working conditions including building data distribution, and improvements to living conditions including reconfiguring the station’s dormitories. This project will provide necessary renewal, replacement, and updating of facilities and infrastructure that Template revised January 10, 2019. COMMISSION AGENDA – Action Item No. 8f Page 2 of 6 Meeting Date: May 28, 2024 have been in operation in the existing fire station for decades. These systems are outdated or at the end of their useful life. The project team will return in October 2024 to request construction authorization for the remaining scope of work. The amount of this request is $6,700,000 for enabling construction work and the procurement of long lead items. JUSTIFICATION Construction authorization for the enabling work is required to provide temporary sleeping quarters for the fire fighters in the North apparatus bay which will allow for the full program work to begin sooner. The fire fighters will be relocated temporarily into two construction trailers that will be modified into sleeping units like their current sleeping unit. This will allow the station to maintain daily operations while construction of the new dormitories is in progress. This fire station, also known as Station 1, is strategically located to provide the best response to airfield and terminal incidents with immediate access to the airfield operations area (AOA) and the airport landside roadways. Sequencing and phasing of the full program work is vital to allow for ongoing operations during construction. To minimize disruption to the fire station, the team has researched multiple scenarios to determine which areas of the station can be under construction while allowing the fire fighters access to their daily needs. Moving the fire fighters into their temporary sleeping quarters will allow construction of both East and West side dormitories to occur in the same phase. Diversity in Contracting This project has contracted design and engineering services using an existing 2018 Indefinite Delivery Indefinite Quantity (IDIQ) contract with a Small Business requirement of 5%. To date, this design effort has achieved 18% participation. Looking forward, working with the Port’s Diversity in Contracting team, the GC/CM construction contract WMBE participation aspirational goal has been set at 10%. DETAILS The intent of this project is to replace the existing HVAC systems, including the existing kitchen range and dedicated exhaust, to provide needed utility and modern temperature controls that the existing systems are no longer capable of delivering. During the summer months, spaces such as the dining area with the solarium roof become very hot and the HVAC system is not capable of cooling the space. In conjunction with the HVAC and utility upgrades and to meet current energy code requirements, the solarium roof will be modified to a solid roof with skylights. This will reduce the heat gain in this area and provide better temperature control in the dining and kitchen areas. Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA – Action Item No. 8f Page 3 of 6 Meeting Date: May 28, 2024 The project will also reconfigure the two existing dormitories to better meet current life safety code, reduce noise, increase privacy, and provide greater utility. Currently, each sleeping unit is separated by lockers and privacy curtains. The renovated dorms will provide individual sleeping rooms separated by full height walls and doors. Scope of Work The primary fire station construction work has been broken into two parts: Enabling Work (1) Interior modifications to North apparatus bay to house two construction trailers to be used as temporary sleeping quarters for fire fighters while new dormitories are under construction. (2) Installation of temporary air handling unit and power to construction trailers. (3) Interior build out of construction trailers to provide individual beds, lockers and privacy curtains for fire fighter sleeping units. (4) Procurement of mechanical upgrade equipment that has a long manufacture and delivery time to mitigate the impact to the construction schedule. These include two new air handling units, heat pumps, and kitchen range. Full Program (1) Maintain full building occupancy and operation during construction. (2) Replace HVAC systems, including two air handling units, that are past their useful life. (3) Replace/upgrade electrical system including a new service transformer, in part, to support the HVAC system replacement. (4) Modify solarium roof in dining area to alleviate hot temperatures in the warmer months that make the dining area uncomfortable. This is in direct relation to the HVAC system upgrade and improving living conditions for the fire fighters. (5) Replace existing kitchen range including exhaust hood required to coordinate with the HVAC system replacement. (6) Renovate and remodel the two existing dormitories to better meet code, reduce noise, and increase privacy. (7) Modify/upgrade the station’s portion of the Airport’s computer automated dispatch/alarm notification system for unit call-out to support the dormitory renovation objective. (8) Install electric vehicle (EV) charging stations as part of Environmental “SPARC” initiatives. The fire station is scheduled to receive EV fleet vehicles in Q4 2024. Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA – Action Item No. 8f Page 4 of 6 Meeting Date: May 28, 2024 Schedule Activity Enabling Work Construction Start 2024 Q4 Full Program Construction Authorization 2024 Q4 Full Program Construction Start 2025 Q1 In-use date (Enabling) 2025 Q1 In-use date (Full Program) 2026 Q2 Cost Breakdown This Request Total Project Design $0 $5,000,000 Construction $6,700,000 $24,922,000 Total $6,700,000 $29,922,000 ALTERNATIVES AND IMPLICATIONS CONSIDERED Among the alternatives considered, continuing the practice of minimal investment in piecemeal repairs or low-cost targeted improvements were found not viable to address the core issues facing first responders working and living in the primary fire station. Alternative 1 – Delay the construction of enabling work and long lead equipment procurement and combine with full project scope in Q1 of 2025. Cost Implications: $1,000,000 Pros: (1) Delays capital and expense investment by approximately 4 months Cons: (1) Prolongs the improvements that support the fire fighter’s ability to perform at their best. (2) Postponing the temporary dorm work does not allow the project team to improve the schedule so the solarium work can be done during more favorable weather months. (3) Delays the procurement of long lead equipment which could adversely affect overall project duration. (4) Increased cost due to constantly changing labor rates, supply chain issues and escalation. This is not the recommended alternative. Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA – Action Item No. 8f Page 5 of 6 Meeting Date: May 28, 2024 Alternative 2 – Authorize funding for the construction of the enabling work and procurement of long lead equipment as requested. Cost Implications: $6,700,000 Pros: (1) Improves schedule by allowing enabling work to start prior to design completion for the full program scope. (2) Allows for procurement of long lead equipment as part of the enabling package to mitigate any schedule delays due to supply chain issues. (3) Allows for exterior solarium work to occur in the more favorable weather conditions and thus avoiding potential delays due to inclement weather. (4) Provides better cost certainty for the enabling package. Cons: (1) Separates the project scope into two parts and thus extends the duration of disruption to the ongoing fire station operations. This is the recommended alternative. FINANCIAL IMPLICATIONS Cost Estimate/Authorization Summary Capital Expense Total COST ESTIMATE Original estimate $20,000,000 $0 $20,000,000 Previous changes – net $5,000,000 $0 $5,000,000 Current change $4,922,000 $0 $4,922,000 Revised estimate $29,922,000 $0 $29,922,000 AUTHORIZATION Previous authorizations $7,300,000 $0 $7,300,000 Current request for authorization $6,700,000 $0 $6,700,000 Total authorizations, including this request $14,000,000 $0 $14,000,000 Remaining amount to be authorized $15,922,000 $0 $15,922,000 Annual Budget Status and Source of Funds This project, CIP C801256, was included in the 2024-2028 capital budget and plan of finance with a budget of $25,000,000. A budget increase of $4,922,000 was transferred from the Aeronautical Allowance CIP (C800753) resulting in zero net change to the Aviation capital budget. The funding source will include the Airport Development Fund and revenue bonds. This project was presented to the airlines as a required Majority-in-Interest (MII) on May 19, 2022. After consultation with the airlines, airport management elected to utilize the Signatory Lease and Operating Agreement (SLOA) IV Discretionary new project provision which exempts this project from MII approval. This Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA – Action Item No. 8f Page 6 of 6 Meeting Date: May 28, 2024 provision provides the airport with up to $42 million of aeronautical rate base project costs that may be exempt from the MII review during the term of the agreement. Financial Analysis and Summary Project cost for analysis $29,922,000 Business Unit (BU) Fire, project allocates 95.36% rate base cost to airlines 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 $0.16 in 2026 Future Revenues and Expenses (Total cost of ownership) The upgrades to the inefficient mechanical system and aging infrastructure will improve overall operation and maintenance of the fire station. The project team will coordinate with Aviation Maintenance on costs associated with this building as the design develops further. ADDITIONAL BACKGROUND Station 1 is located north of the airport directly west of the intersection of the airport expressway and South 170th Street. This building consists of a 30,150 square foot main floor and 4,840 square foot upper floor. The building has undergone some minor upgrades since its original construction in 1977, the most substantial of which was the build out of the west carport into a new apparatus bay in 2008. However, the greater part of the building and its core systems such as HVAC and electrical, are original to the building. Investment in the facility has always been measured against the anticipated short remaining life of the facility. This has led to past deferrals of projects intended to address renewal and replacement. The systems and infrastructure of the existing facility are, for the most part, original and well past their useful life and significantly behind current operational standards. ATTACHMENTS TO THIS REQUEST (1) Presentation PREVIOUS COMMISSION ACTIONS OR BRIEFINGS June 28, 2022 – The Commission authorized $7,000,000 to facilitate the following actions: (1) complete design, (2) use the General Contractor/Construction Manager (GC/CM) Contracting Method, (3) advertise and award a GC/CM Construction contract, (4) execute a pre-construction services contract, including enabling construction work and early work packages, (5) execute change orders over $300,000 where cost is within Authorized Budget, (6) include and use a project labor agreement as part of the GC/CM contract, and (7) use Port crews in support of the Primary Fire Station Continuing Operations Preservation Project. Template revised June 27, 2019 (Diversity in Contracting).
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