8b. Memo
Water Reservation Rehabilitation Project at SEA
COMMISSION AGENDA MEMORANDUM Item No. 8b ACTION ITEM Date of Meeting May 24, 2022 DATE: May 13, 2022 TO: Stephen P. Metruck, Executive Director FROM: Eileen Francisco, Director, Aviation Project Management SUBJECT: Water Reservoir Rehabilitation (C801172) Amount of this request: $1,000,000 Total estimated project cost: $3,169,000 ACTION REQUESTED Request Commission authorization for the Executive Director to (1) prepare design and construction bid documents, and (2) utilize Port of Seattle crews and small works contracts for the Water Reservation Rehabilitation project at Seattle-Tacoma International Airport. The amount of this request is $1,000,000. The total estimated project cost is $3,169,000. EXECUTIVE SUMMARY The 2-million-gallon water reservoir at Seattle-Tacoma International Airport is an above ground steel tank that provides water storage for domestic use and firefighting to the entire airport. The recent inspection indicates that severe corrosion has appeared in many areas on the reservoir and, if not addressed, could result in deformation of the structure. Additionally, the presence of rust also puts the water quality into jeopardy. This project will rehabilitate the structure to extend its useful life. JUSTIFICATION The Department of Health requires that water reservoirs be kept in good operating condition. The reservoir was built in the year 2000 as a requirement under the National Fire Protection Association 24 code, ensuring the airport has reliable water on hand (in a tank) to fight any fire on the airport. Without the rehabilitation efforts the reservoir is at risk of potential structural failure and water quality degradation. Diversity in Contracting This project will utilize the mechanical IDIQ contract P00320719 AMC Engineers and leverage their established WMBE goal of 17%. Template revised January 10, 2019. COMMISSION AGENDA Action Item No. __8b__ Page 2 of 5 Meeting Date: May 24, 2022 DETAILS The water reservoir is located north of the airport off Host Road. The reservoir can hold 2 million gallons of fire and domestic water. It is generally recommended that water reservoirs of this type be inspected and cleaned every 3 to 5 years. Previous inspections include a 2013 dive inspection, 2017 cathodic protection survey, and 2018 dive inspection. The most recent inspections include a 2021 dive inspection, cathodic protection inspection, and 2022 exterior coating test. The Department of Health requires that water reservoirs be kept in good, operating condition. During construction, the airport's water source will be switched over from the reservoir to Seattle Public Utilities. Coordination and planning efforts with Aviation Maintenance, Boiler, and the Fire Department are underway for this event, as well as giving contractors access to the tank during construction. Some scope items require that the water reservoir be drained completely. Due to environmental restrictions, the water cannot be drained directly into the sewer. Therefore, it is likely that storage tanks will be brought onto the site to hold the water during construction. Scope of Work The scope for this project includes recommendations from the 2021 dive inspection report. Additional scope items from project stakeholders have also been included. The project scope seeks to rehabilitate the structure and extend the asset's useful life by 20 years by implementing the following improvements: (1) Complete replacement of interior and exterior coatings (2) Cathodic protection system improvements (3) Rebuild interior and exterior access ladders to meet safety codes (4) Replace weathered tank hardware including nuts, bolts, cables, and pulleys (5) Install tank sampling ports (6) Valve vault improvements and repairs (7) Cleaning/Removing vegetation between the pavement joints and around the perimeter of the concrete foundation (8) Repairing broken concrete curb around the base of the water reservoir Schedule Activity Design start Q2 2022 Commission construction authorization Q1 2023 Construction start Q4 2023 In-use date Q3 2024 Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA Action Item No. __8b__ Page 3 of 5 Meeting Date: May 24, 2022 Cost Breakdown This Request Total Project Design $1,000,000 $1,150,000 Construction $0 $2,019,000 Total $1,000,000 $3,169,000 ALTERNATIVES AND IMPLICATIONS CONSIDERED Alternative 1 Proceed with only the scope items outlined in the 2021 Inspection Report. Cost Implications: $3,024,000 Pros: (1) Eliminates risk of the tank's structural integrity becoming compromised. (2) Eliminates risk of jeopardizing water quality. (3) Decreases direct costs over Alternative 1 by $145K. Cons: (1) These scope items will need to be completed at another date, requiring the water reservoir be drained a second time. (2) The project will not include the scope items required by the Washington Administrative Code. This is not the recommended alternative. Alternative 2 Replace the tank entirely. Cost Implications: $20,000,000 Pros: (1) Eliminates risk of the tank's structural integrity becoming compromised. (2) Eliminates risk of jeopardizing water quality. Cons: (1) Significantly increases project cost with little to no added benefit. (2) The reservoir will be out of service for a much longer duration. This is not the recommended alternative. Alternative 3 Proceed with the full scope of the Water Reservoir Rehabilitation project. Cost Implications: $3,169,000 Pros: (1) Eliminates risk of the tank's structural integrity becoming compromised. (2) Eliminates risk of jeopardizing water quality. (3) Some of the additional scope items require the tank be empty. Including them in this project eliminates the need to drain the tank a second time, saving both time and money. Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA Action Item No. __8b__ Page 4 of 5 Meeting Date: May 24, 2022 (4) Including the additional scope items will fulfill requirements set by the Washington Administrative Code regarding storage requirements and sampling ports for water quality monitoring. Cons: (1) Increases direct costs over Alternative 2 by $145K. This is the recommended alternative. FINANCIAL IMPLICATIONS Cost Estimate/Authorization Summary Capital Expense Total COST ESTIMATE Original estimate $1,572,000 $0 $1,572,000 Current change $1,571,000 $26,000 $1,597,000 Revised estimate $3,143,000 $26,000 $3,169,000 AUTHORIZATION Previous authorizations $150,000 0 $150,000 Current request for authorization $974,000 $26,000 $1,000,000 Total authorizations, including this request $1,124,000 $26,000 $1,150,000 Remaining amount to be authorized $2,019,000 $0 $2,019,000 Annual Budget Status and Source of Funds This project, CIP C801172, was included in the 2022-2026 capital budget and plan of finance with a budget of $1,572,000. A budget increase of $1,571,000 was transferred from the Aeronautical Reserve CIP (C800753) resulting in zero net change to the Aviation capital budget. The funding source will include the Airport Development Fund. Financial Analysis and Summary Project cost for analysis $3,169,000 Business Unit (BU) Utilities 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 $.01 in 2026 Future Revenues and Expenses (Total cost of ownership) No additional maintenance costs are anticipate following the completion of this project. Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA Action Item No. __8b__ Page 5 of 5 Meeting Date: May 24, 2022 ATTACHMENTS TO THIS REQUEST (1) Presentation PREVIOUS COMMISSION ACTIONS OR BRIEFINGS None. Template revised June 27, 2019 (Diversity in Contracting).
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