Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8i
ACTION ITEM
Date of Meeting
March 14, 2023
DATE: March 3, 2023
TO: Stephen P. Metruck, Executive Director
FROM: Keri Stephens, Director, Aviation Facilities and Capital Programs
Eileen Francisco, Director, Aviation Project Management
SUBJECT: Sanitary Pipe Replacement (CIP# C801239) – Design Authorization
Amount of this request:
$600,000
Total estimated project cost:
$3,000,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to (1) increase the project budget
by $1,000,000 for a revised total budget of $3,000,000; (2) prepare design and construction bid
documents for the Sanitary Pipe Replacement project. The amount of this request is $600,000
for an estimated total project cost not to exceed $3,000,000.
EXECUTIVE SUMMARY
Sanitary waste pipes serving multiple SEA areas are at or near end-of-life (typically 30 years). This
project replaces or relines waste pipes. Failures result in unscheduled shutdown of airport
restrooms, restaurants, and tenant spaces which will directly impact passenger experience and
tenant operations. Leakage and spills from failed pipes may result in health hazards to the public
and airport workers as some waste pipes are routed over occupied spaces.
Since the preliminary budget was developed (2020) we have seen rising material costs, increased
labor rates, increased abatement scope, and escalation, resulting in an additional $1,000,000
needed to complete the work.
JUSTIFICATION
Failure of sanitary waste piping is often sudden, unexpected, and impossible to predict. Sanitary
waste pipe failures result in unscheduled emergency repairs which cause unscheduled
shutdowns of airport restrooms, restaurants, and tenant owned spaces. This directly impacts
customer experience and tenant operations. This project replaces the sanitary waste piping
identified as a risk if not replaced.
COMMISSION AGENDA – Action Item No. 8i Page 2 of 4
Meeting Date: March 14, 2023
Template revised June 27, 2019 (Diversity in Contracting).
Diversity in Contracting
The design services will be completed using an existing IDIQ contract that was established in 2022
which has a 16% WMBE participation utilization requirement.
DETAILS
Scope of Work
Replace, or reline failing sanitary waste piping on Concourse A, Main Terminal, and Central
Terminal (2 locations).
(1) A Concourse - Work will result in temporary closures to restrooms and tenant spaces
on concourse level. Scope includes approximately 350 linear feet of sewer pipe work.
210 linear feet will replace existing cast iron pipe with new stainless-steel piping and
150 linear feet of buried pipe will be cast-in-place pipe linear.
(2) Main Terminal – Pipe located in mechanical room 4 (under baggage claim 15 area).
Approximately 250 linear feet pipe will be replaced from cast iron to stainless-steel.
(3) Central Terminal South – Approximately 250 linear feet of sanitary pipe serving TSA
locker rooms (Men/Women) with some central terminal concourse concessions. 55
linear feet of this will be replacing cast iron piping with stainless-steel, and 200 linear
feet of this will be cast-in-place pipe.
(4) Central Terminal North – Approximately 230 linear feet of Sanitary pipe serving
concourse level restrooms and concessions. 30 linear feet of this will be replacing cast
iron piping with stainless-steel, and 200 linear feet of this will be cast-in-place pipe.
Schedule
Activity
Design complete
Q2 2024
Commission construction authorization
Q2 2024
Construction award
Q4 2024
Substantial completion
Q2 2026
This Request
Total Project
Design
$600,000
$650,000
Construction
$0
$2,350,000
Total
$600,000
$3,000,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Status Quo. Do not proceed with project.
Cost Implications: Expense approximately $35,000 for notebook development costs.
Pros:
(1) Delays or defers capital investment.
COMMISSION AGENDA – Action Item No. 8i Page 3 of 4
Meeting Date: March 14, 2023
Template revised June 27, 2019 (Diversity in Contracting).
Cons:
(1) Sanitary pipe failures could occur at any time resulting in large expense costs for
emergency repairs and shutdowns to restrooms, concessions and other tenant owned
spaces.
(2) Potential for additional increase in costs for materials, labor, and/or inflation.
This is not the recommended alternative.
Alternative 2 – Replace, or reline failing sanitary waste piping on Concourse A, Main Terminal,
and Central Terminal (2 locations).
Cost Implications: $2,935,000 in capital costs and $65,000 in expense costs
Pros:
(1) Provides an additional 15-50 years of sanitary pipe life, resulting in less unexpected
shutdowns and emergency repairs.
(2) Reduces potential negative risk to passenger experience by limiting shutdowns of
concessions and restrooms.
(3) Replaces aging infrastructure in a timely manner.
Cons:
(1) Capital and expense costs.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$2,000,000
$0
$2,000,000
Current change
$935,000
$65,000
$1,000,000
Revised estimate
$2,935,000
$65,000
$3,000,000
AUTHORIZATION
Previous authorizations
$50,000
$0
$50,000
Current request for authorization
$600,000
$0
$600,000
Total authorizations, including this request
$650,000
$0
$650,000
Remaining amount to be authorized
$2,285,000
$65,000
$2,350,000
COMMISSION AGENDA – Action Item No. 8i Page 4 of 4
Meeting Date: March 14, 2023
Template revised June 27, 2019 (Diversity in Contracting).
Annual Budget Status and Source of Funds
This project C801239 was included in the 2023-2027 capital budget and plan of finance with a
budget of $2,000,000. The capital budget increase of $935,000 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 future revenue bonds.
Financial Analysis and Summary
Project cost for analysis
$3,000,000
Business Unit (BU)
Terminal Building
Effect on business performance
(NOI after depreciation)
NOI after depreciation will increase due to inclusion of
capital (and operating) costs in airline rate base.
IRR/NPV (if relevant)
N/A
CPE Impact
$0.01 in 2026
Future Revenues and Expenses (Total cost of ownership)
As a result of this project, Aviation Maintenance may see a small increase in preventative
maintenance support.
ATTACHMENTS TO THIS REQUEST
(1) Presentation Slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None