8e. Memo
Potable Water Box Replacement
COMMISSION AGENDA MEMORANDUM Item No. 8e ACTION ITEM Date of Meeting May 23, 2023 DATE: May 11, 2023 TO: Stephen P. Metruck, Executive Director FROM: Keri Stephens, Director, Aviation Facilities and Capital Programs Eileen Francisco, Director, Aviation Project Management SUBJECT: Potable Water Box Replacement (C801187) Project Authorization Amount of this request: $2,497,000 Total estimated project cost: $2,547,000 ACTION REQUESTED Request a single Commission Authorization for the Executive Director to proceed with design and construction for the Potable Water Box Replacement project and advertise and execute a major works construction contract. This is a single request for $2,497,000 of a total estimated project cost not to exceed $2,547,000. EXECUTIVE SUMMARY Potable water boxes are located next to passenger loading bridges and supply aircraft with potable water required for restrooms, ice, and other uses while in flight. This project will replace 9 potable water boxes that are currently beyond their useful life on Concourses C and D. Replacement boxes are larger and require two electrical connections. Design will ensure the boxes have the proper anchors, stands, and connections. In addition, the project will ensure proper heat trace on piping to prevent freezing during cold weather. The new boxes include increased safety features, such as chain guards, to improve worker safety when using the equipment. This request is for design and construction authorization in the amount of $2,497,000 of an estimated project cost not to exceed $2,547,000. JUSTIFICATION This project will increase reliability by replacing potable water boxes that are beyond their useful life. If a water box fails airlines will need to either use an adjacent box or use a water truck. In addition, the new water boxes have chain guards on the large chain that pulls the hose back into the box, which improves worker safety. Template revised January 10, 2019. COMMISSION AGENDA – Action Item No. 8e Page 2 of 4 Meeting Date: May 23, 2023 Diversity in Contracting This project will be using an existing IDIQ contract for design that was established in 2022. The contract includes a 16% women-and-minority-owned business enterprise (WMBE) participation utilization requirement. The project team will work with Diversity in Contracting Department to determine participation opportunities and appropriate aspirational goals for WMBE for the construction phase of the project. DETAILS This project will replace 9 potable water boxes that are beyond their useful life to reduce the risk of failure. This project includes ensuring there is heat trace on the supply piping to reduce the risk of freezing; replacing stands; foundation work as necessary; and any other work required to ensure proper functioning of the water boxes and compliance with current building code. Scope of Work Work will include a replacement of the potable water boxes and includes: (1) The potable water box; (2) The water box stand; (3) Electrical connections; (4) Heat trace on supply pipes; (5) Foundation and backflow preventors as needed; and (6) Any other work required to ensure the potable water boxes operate safely and meet current building code. Schedule Activity Commission design and construction authorization 2023 Quarter 2 Design start 2023 Quarter 2 Construction start 2024 Quarter 4 In-use date 2025 Quarter 3 Cost Breakdown This Request Total Project Design $575,000 $625,000 Construction $1,922,000 $1,922,000 Total $2,497,000 $2,547,000 ALTERNATIVES AND IMPLICATIONS CONSIDERED This is a renewal and replacement project. This project is not adding any new potable water boxes. Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA – Action Item No. 8e Page 3 of 4 Meeting Date: May 23, 2023 Alternative 1 – Status quo. Replace water boxes as they fail. Cost Implications: Expense notebook funds Pros: (1) Reducing capital expenditure in the short term. Cons: (1) Does not provide reliable infrastructure for airline use. (2) Does not increase worker safety. (3) Will have long outages of water boxes. This is not the recommended alternative. Alternative 2 – Replace 9 potable water boxes that are at the end of their useful life. Cost Implications: $2,547,000 in capital costs. Pros: (1) Provides reliable infrastructure for airline use. (2) Increases worker safety by providing chain guards. (3) Reduces the risk of equipment failure and need for emergency repairs. Cons: (1) Requires capital spending. This is the recommended alternative. FINANCIAL IMPLICATIONS Cost Estimate/Authorization Summary Capital Expense Total COST ESTIMATE Original estimate $2,203,000 $0 $2,203,000 Current change $344,000 0 $344,000 Revised estimate $2,547,000 0 $2,547,000 AUTHORIZATION Previous authorizations $50,000 0 $50,000 Current request for authorization $2,497,000 0 $2,497,000 Total authorizations, including this request $2,547,000 0 $2,547,000 Remaining amount to be authorized $0 $0 $0 Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA – Action Item No. 8e Page 4 of 4 Meeting Date: May 23, 2023 Annual Budget Status and Source of Funds The Potable Water Box Replacement (C801187) is included in the 2023-2027 capital budget and plan of finance with a budget of 2,203,000. The capital budget increase of $344,000 was transferred from the Aeronautical Allowance CIP C800753 resulting in no net change to the Airport capital budget. The funding sources will be the Airport Development Fund and existing revenue bonds. Financial Analysis and Summary Project cost for analysis $2,547,000 Business Unit (BU) Airfield Apron 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 $0.01 in 2026 ATTACHMENTS TO THIS REQUEST None PREVIOUS COMMISSION ACTIONS OR BRIEFINGS None Template revised June 27, 2019 (Diversity in Contracting).
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