Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8j
ACTION ITEM
Date of Meeting
November 14, 2023
DATE: November 3, 2023
TO: Stephen P. Metruck, Executive Director
FROM: Keri Stephens, Director AV Facilities & Capital Programs
Eileen Francisco, Director Aviation Project Management
SUBJECT: Flow Meter Replacement CMP Design and Construction
Amount of this request:
$ 4,165,000
Total estimated project cost:
$4,235,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to (1) prepare design and
construction bid documents for Flow Meter Replacement in the Central Mechanical Plant (CMP),
(2) advertise, bid, and execute a major works construction contract, execute related project
change orders, amendments, work authorizations, purchases, contracts, and take other actions
necessary to support and deliver the Flow Meter Replacement project within the approved
budget, (3) use Port of Seattle crews and small works contracts to support the design and
construction activities. The amount of this request is $4,165,000 for an estimated total project
cost not to exceed $4,235,000.
EXECUTIVE SUMMARY
This is a renewal and replacement project that will be replacing flow meters and some isolation
valves in the CMP which are at their end of life. The flow meters are critical to the operation of
the entire cooling system. It provides cooling to the terminal building and concourses, as well as
all other critical mechanical, electrical and data communication rooms. Additionally, select
isolation valves were identified as needing replacement in conjunction with the flow meters
because they are not properly sealing and stopping the water flow as intended. New isolation
valves on the condenser supply and return side of equipment will ensure adequate equipment
isolation during project construction, regular maintenance, and emergency operations.
JUSTIFICATION
The cooling system consists of chillers, heat exchangers, water loops, and cooling towers. The
flow meters are essential for the efficient operation of these systems. In 2019, four flow meters
in two of the cooling towers failed and had to be replaced by a separate project. This project will
be replacing the remaining cooling systems’ flow meters to mitigate unplanned outages and loss
COMMISSION AGENDA – Action Item No. 8j Page 2 of 5
Meeting Date: November 14, 2023
Template revised June 27, 2019 (Diversity in Contracting).
off cooling capacity. Four isolation valves were identified as needing replacement because they
can no longer maintain a complete seal after approximately 20 years of use. These are large
valves that are upstream of the flow meters and replacing the isolation valves at the same time
provides efficiency by consolidating shutdowns during one capital project.
This project was one that was deferred during the COVID-19 workplace disruption. The project
scope was confirmed and the addition of the four isolation valves was re-estimated with current
market trends which resulted in an increase project cost.
Diversity in Contracting
The design services will be completed using an existing IDIQ contract that was established in 2022
which has a 16% WMBE commitment. The project staff, in coordination with the Diversity in
Contracting Department, will evaluate the WMBE goals for the construction services during the
design phase.
DETAILS
The work detailed in this memo is to remove and replace a total of thirty-one flow meters and
four isolation valves throughout the CMP and cooling towers.
Scope of Work
The Flow Meter Replacement in the CMP project will consist of:
(1) Remove and replace six flow meters at the cooling towers. There are two flow meters
at Towers 3, 4, and 5.
(2) Remove and replace sixteen flow meters at the chillers. One chilled water meter and
one condenser water flow meter on each of the eight chillers.
(3) Remove and replace six flow meters at the heat exchangers. One chilled water meter
and one condenser water flow meter on each of the three heat exchangers.
(4) Remove and replace three flow meters on the main secondary water loops. All three
meters are chilled water flow meters.
(5) Remove and replace four isolation valves on two chillers. Two valves on chiller #3 and
chiller #4.
(6) Integrate new flow meters and isolation valves with the Siemens Direct Digital Control
(DDC) system.
(7) Connect the thirty-one flow meters to the flow rate remote displays (MagFlow).
(8) If necessary, provide piping support as required to meet current building codes.
COMMISSION AGENDA – Action Item No. 8j Page 3 of 5
Meeting Date: November 14, 2023
Template revised June 27, 2019 (Diversity in Contracting).
Schedule
Activity
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Construction Start
In-use date
Cost Breakdown
This Request
Total Project
Design
$1,559,000
$1,609,000
Construction
$2,626,000
$2,626,000
Total
$4,185,000
$4,235,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Defer project to a later date or cancel project.
Cost Implications: Approximately $50,000 would need to be expensed for notebook
development.
Pros:
(1) No further capital investment at this time.
Cons:
(1) Flow meter failure could occur at any time resulting in a large expense cost for
replacement and result in lengthy down time with incremental loss of cooling capacity.
(2) Potential for increased costs of materials and labor if deferred to a later date.
This is not the recommended alternative.
Alternative 2 – Remove and replace the flow meters and all thirty-four isolation valves in the
CMP and cooling towers.
Cost Implications: Capital project investment of an estimated $5.2M for planning, design, and
construction.
Pros:
(1) Mitigate potential for failures that negatively affect the operation of the cooling systems.
(2) Improved efficiency over existing systems.
(3) Increase reliability and decrease maintenance costs.
(4) Future routine maintenance is made easier and smaller segments of the system can be
shutdown with more reliable isolation valves.
(5) Reduces potential for change orders due to faulty isolation valves.
Cons:
(1) Increases project schedule.
(2) Increases capital investment.
COMMISSION AGENDA – Action Item No. 8j Page 4 of 5
Meeting Date: November 14, 2023
Template revised June 27, 2019 (Diversity in Contracting).
(3) Increases the number of shutdowns and disruptions to the cooling systems.
This is not the recommended alternative.
Alternative 3 – Remove and replace the flow meters and four isolation valves in the Central
Mechanical Plant as scoped.
Cost Implications: Capital project investment of an estimated $4.2M for planning, design, and
construction.
Pros:
(1) Mitigate potential for failures that negatively affect the operation of the cooling
systems.
(2) Improved efficiency over existing systems.
(3) Increase reliability and decrease maintenance costs.
Cons:
(1) Large capital project investment.
(2) Increases potential for change orders due to faulty isolation valves.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
COST ESTIMATE
Capital
Expense
Total
Original estimate
$2,954,000
$0
$2,954,000
Budget Increase
$1,281,000
$0
$1,281,000
Revised estimate
$4,235,000
$0
$4,235,000
AUTHORIZATION
Previous authorizations
$70,000
$0
$70,000
Current request for authorization
$4,165,000
$0
$4,165,000
Total authorizations, including this request
$4,235,000
$0
$4,235,000
Remaining amount to be authorized
$0
$0
$0
Annual Budget Status and Source of Funds
The Flow Meter Replacement CMP (CIP #C801182) was included in the 2023-2027 capital budget
and plan of finance with a budget of $2,954,000. The capital increase of $1,281,000 was
transferred from the Aeronautical Allowance
1
CIP C800753 resulting in no net change to the
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.
COMMISSION AGENDA – Action Item No. 8j Page 5 of 5
Meeting Date: November 14, 2023
Template revised June 27, 2019 (Diversity in Contracting).
Airport capital budget. The funding sources will be the Airport Development Fund and revenue
bonds.
Financial Analysis and Summary
Project cost for analysis
$4,235,000
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 2027
Future Revenues and Expenses (Total cost of ownership)
This project will likely have no impact on Aviation Maintenance operating & maintenance (O&M)
costs. This is a renewal and replacement project that replaces flow meters and some isolation
valves in the CMP which are at their end of life. Replacement will require a similar level of
maintenance. Therefore, there will not be a material impact on Aviation O&M costs.
ATTACHMENTS TO THIS REQUEST
(1) Presentation
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None.