4e
PORT OF SEATTLE MEMORANDUM COMMISSION AGENDA Item No. 4e ACTION ITEM Date of Meeting May 12, 2015 DATE: May 4, 2015 TO: Ted Fick, Chief Executive Officer FROM: Dave Soike, Director, Aviation Facilities and Capital Program Wayne Grotheer, Director, Aviation Project Management Group SUBJECT: Domestic Piping Branch Replacement (CIP #800657) Amount of This Request: $1,392,000 Source of Funds: Airport Development Fund (ADF) Est. Total Project Cost: $1,950,000 Est. State and Local Taxes: $115,000 ACTION REQUESTED Request Commission authorization for the Chief Executive Officer to advertise, bid and execute a major works construction contract for the Domestic Piping Branch Replacement project at Seattle-Tacoma International Airport. This authorization is for $1,392,000 of a total estimated project cost of $1,950,000. SYNOPSIS This authorization would allow for the construction required to replace aging domestic water pipes and associated valves in the Airport's Main Terminal. BACKGROUND There are four domestic water piping branches and manifolds in the Main Terminal, one serving each mechanical room (rooms 1-4). These piping branches are approximately 43 years old. During recent maintenance activities, portions of the piping were disassembled. The pipes were found to be severely corroded, with the interior of pipes and fittings nearly completely plugged with rust deposits. Also, many of the valves no longer function, leaving the Port vulnerable to a water shutdown in the event of failure. PROJECT JUSTIFICATION AND DETAILS This request would authorize construction work for the replacement of the water pipes prior to failure. Water pipes corrode through age and use. These pipes are over 40 years old and show considerable corrosion. The disruption of domestic water supply in the event of failure would be unacceptable to airport operations. Template revised May 30, 2013. COMMISSION AGENDA Ted Fick, Chief Executive Officer May 4, 2015 Page 2 of 5 Construction will be performed by a major works contractor with support from Port maintenance and Port Construction Services. Project Objectives Replace existing domestic water piping from the water main in the utilidor through the reducing stations in Mechanical Rooms 1-4. Reduce risk of domestic water disruption to large portions of the Airport caused by pipe or valve failure. Evaluate existing pipe sizes based on current demands and planned expansions and resize piping as appropriate. Design and integrate domestic water metering into the existing Direct Digital Control System. Replace existing valves that enable the Airport to shut down water in the event of an emergency or for future work shutdowns. Minimize water supply disruption by performing root valve replacements overnight and back feeding each mechanical room with water during construction to avoid outages. Scope of Work Replace four 6" and 8" domestic piping branches and associated sub-branches from the 12" main in the utilidor up to and including the reducing stations located near the mechanical rooms in the Main Terminal; and Perform necessary work to keep the domestic water system functional through the construction period. Schedule Project Notebook Approval 3rd Quarter 2014 Commission Authorization for Design 4th Quarter 2014 Design Start 4th Quarter 2014 Design Completion 2nd Quarter 2015 Commission Authorization for Construction 2nd Quarter 2015 Construction 4th Quarter 2015 through 1st Quarter 2016 FINANCIAL IMPLICATIONS Budget/Authorization Summary Capital Expense Total Project Original Budget $1,950,000 $0 $1,950,000 Previous Authorizations $558,000 $0 $558,000 Current request for authorization $1,392,000 $0 $1,392,000 Total Authorizations, including this request $1,950,000 $0 $1,950,000 Remaining budget to be authorized $0 $0 $0 Total Estimated Project Cost $1,950,000 $0 $1,950,000 COMMISSION AGENDA Ted Fick, Chief Executive Officer May 4, 2015 Page 3 of 5 Project Cost Breakdown This Request Total Project Design $0 $558,000 Construction $1,392,000 $1,392,000 Total $1,392,000 $1,950,000 Budget Status and Source of Funds This project was included in the 2015-2019 capital budget and plan of finance with a budget of $1,950,000. The funding source will be the Airport Development Fund. Financial Analysis and Summary CIP Category Renewal/Enhancement Project Type Renewal and Replacement Risk adjusted discount rate N/A Key risk factors N/A Project cost for analysis $1,950,000 Business Unit (BU) Terminal cost center Effect on business performance NOI after depreciation will increase IRR/NPV N/A CPE Impact CPE will increase by less than $.01 in 2017. This project was included in the business plan forecast. STRATEGIES AND OBJECTIVES This project supports the Port's Century Agenda objective of meeting the region's air transportation needs at Sea-Tac Airport for the next 25 years. Maintaining our existing assets and infrastructure is necessary to meeting this objective. This project is not impacted by the airport's Sustainable Airport Master Plan. TRIPLE BOTTOM LINE Economic Development This project will allow the Port to continue providing Airport and concessions tenants with uninterrupted domestic water. Completion of this project will significantly reduce the chances of a domestic water outage and also prevent the economic impacts of an emergency repair project and potential costs to tenants. Environmental Responsibility This project will provide the opportunity to apply environmental sustainability principles primarily through the use of ductile iron pipe that has a high recycled content COMMISSION AGENDA Ted Fick, Chief Executive Officer May 4, 2015 Page 4 of 5 Community Benefits This project saves the Port the potential cost and operational impacts of a domestic water failure that could take several months to correct. Concessions and the traveling community will also benefit by maintaining an uninterrupted water supply. ALTERNATIVES AND IMPLICATIONS CONSIDERED Alternative 1) Status Quo. Capital Cost: $0; increased maintenance expense Pros: The Port could delay expenditure of the cost of pipe replacement, using the funds for other purposes. Cons: Valves are already partially plugged and do not function. A more significant failure is likely within the next two years. Alternative 2) Perform complete piping replacement of the entire main terminal. Cost: $8,203,000 Pros: This option replaces all the corroded domestic water piping through the main terminal. Cons: This option is prohibitively expensive and does not take advantage of the efficiencies gained by combining future plumbing repair into other upcoming construction that will occur in the same locations. Alternative 3) Perform selective replacement where the problems are the worst - mechanical rooms 1-4. Cost: $1,950,000 Pros: This option is a cost effective way to replace a major portion of the corroded domestic water piping in the mechanical rooms and takes advantage of the efficiencies gained by combining remaining piping replacement into upcoming work that will occur in the same locations. Cons: This option does not replace all the domestic water piping that will eventually need to be replaced. The recommendation is to pursue Alternative 3. COMMISSION AGENDA Ted Fick, Chief Executive Officer May 4, 2015 Page 5 of 5 ATTACHMENTS TO THIS REQUEST Computer slide presentation. PREVIOUS COMMISSION ACTIONS OR BRIEFINGS November 4, 2014 Commission approved $558,000 for preparation of design and construction contract documents.
Limitations of Translatable Documents
PDF files are created with text and images are placed at an exact position on a page of a fixed size.
Web pages are fluid in nature, and the exact positioning of PDF text creates presentation problems.
PDFs that are full page graphics, or scanned pages are generally unable to be made accessible, In these cases, viewing whatever plain text could be extracted is the only alternative.