Template revised January 10, 2019.
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.
COMMISSION AGENDA – Action Item No. 8e Page 2 of 4
Meeting Date: May 23, 2023
Template revised June 27, 2019 (Diversity in Contracting).
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.
COMMISSION AGENDA – Action Item No. 8e Page 3 of 4
Meeting Date: May 23, 2023
Template revised June 27, 2019 (Diversity in Contracting).
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
COMMISSION AGENDA – Action Item No. 8e Page 4 of 4
Meeting Date: May 23, 2023
Template revised June 27, 2019 (Diversity in Contracting).
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)
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
ATTACHMENTS TO THIS REQUEST
None
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None
