COMMISSION
AGENDA MEMORANDUM
Item No.
ACTION ITEM
Date of Meeting
DATE :
March 20, 2025
TO:
Stephen P. Metruck, Executive Director
FROM:
Keri Stephens, Director, AV Facilities and Capital Programs
Chelsey Johannsen, AV F&I Mechanical Engineer
8d
April 8, 2025
SUBJECT: STS Standpipe Upgrades (CIP #C801429)
Amount of this request:
$2,029,000
Total estimated project cost:
$4,000,000
ACTION REQUESTED
Request Commission authorization for $2,029,000 to increase funding for previous Executive
Authorization approved contract to perform regulatory dry fire suppression standpipe system
upgrades in the Satellite Transit System (STS) tunnels.
EXECUTIVE SUMMARY
This project work is regulatory and is required to ensure our Satellite Transit System (STS)
Standpipe systems have capacity to undergo working pressures required by National Fire
Protection Association (NFPA) and the Port Fire Department. The originally funding approved
$1,971,000 by Executive Director Authorization on June 21, 2024. This project has executed four
of the seven work orders required through a Job Order Contract (JOC). Current cost estimates
have surpassed contractor's initial project cost assumptions due to quantity increases and limited
access during regular shutdown work windows in the STS tunnels to maintain operational uptime
of the STS system for the traveling public.
JUSTIFICATION
The STS fire suppression dry standpipe system was hydrostatically tested per NFPA 25 code
requirements in April 2024. The results identified pressure deficiencies in the system. This STS
Standpipe Upgrade project is returning the existing dry standpipe system back to operational
capacity to comply with NFPA 25 code.
Template revised January 10, 2019.
COMMISSION AGENDA - Action Item No. 8d
Meeting Date: April 8, 2025
Page 2 of 3
Diversity in Contracting
This project work is utilizing a previously awarded JOC contract that worked with the Diversity in
Contracting Department and was awarded the contract with a 6% Disadvantaged Business
Enterprise (DBE) goal.
Scope of Work
Inspect all pipe and pipe fittings, replace all mechanical pipe couplings, hose valves, and pipe or
pipe fittings identified to be deficient. Install (2) check valves per (7) system legs. Hydrostatically
test STS fire standpipe systems for the North, South and Shuttle to verify operational pressure
capacity complies with NFPA 25 code standards.
Schedule
Project work for STS South loop and Shuttle are to be completed mid-April 2024
Previous DORA authorization
Previous Construction start
Commission construction authorization
Construction start
In-use date
2024 Quarter 3
2024 Quarter 3
2025 Quarter 2
2025 Quarter 2
2025 Quarter 4
Cost Breakdown
This Request
Total Project
Construction
Total
$2,029,000
$2,029,000
$4,000,000
$4,000,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 - Comprehensive system upgrade. Replace all couplings, hose valves, and add
control valves. Inspect pipe and pipe fittings and replace where deficiencies are identified.
Cost Implications: $4M
Pros:
(1) Increases service life of standpipe fire suppression systems.
(2) Improves reliability of life safety in case of an event.
Cons:
(1) Capital expenditures.
This is the recommended alternative.
Template revised June 27, 2019 (Diversity in Contracting).
COMMISSION AGENDA - Action Item No. 8d
Meeting Date: April 8, 2025
FINANCIAL IMPLICATIONS
Page 3 of 3
Capital
Expense
Total
COST ESTIMATE
Original estimate
$1,971,000
$0
$1,971,000
Current change
Revised estimate
$2,029,000
$4,000,000
0
0
$2,029,000
$4,000,000
AUTHORIZATION
Previous authorizations
Current request for authorization
Total authorizations, including this request
Remaining amount to be authorized
$1,971,000
$2,029,000
$4,000,000
$0
$0
0
0
$0
$1,971,000
$2,029,000
$4,000,000
$0
Cost Estimate/Authorization Summary
Annual Budget Status and Source of Funds
This project (C801429) was included in the 2025-2029 capital budget and plan of finance with a
budget of $1,971,000. A budget increase of $2,029,000 was transferred from the Aeronautical
Allowance1 CIP C800753 resulting in zero net change to the Aviation capital budget. The funding
sources will be the Airport Development Fund (ADF) and revenue bonds.
Financial Analysis and Summary
Project cost for analysis
Business Unit (BU)
Effect on business performance
(NOI after depreciation)
IRR/NPV (if relevant)
CPE Impact
$4,000,000
Terminal Building
NOI after depreciation will increase due to inclusion of
capital (and operating) costs in airline rate base.
N/A
$0.01 in 2026
Future Revenues and Expenses (Total cost of ownership)
There are no significant changes to maintenance requirements to dry standpipe fire suppression
system.
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None.
1
The Aeronautical Allowance is included in the Capital Improvement Plan to ensure funding capacity for
unspecified projects, cost increases for existing projects, new initiatives, and unforeseen needs. This ensures funding
capacity for unanticipated spending within the dollar amount of the Allowance CIP.
Template revised June 27, 2019 (Diversity in Contracting).