Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8f
ACTION ITEM
Date of Meeting
May 28, 2024
DATE : May 20, 2024
TO: Stephen P. Metruck, Executive Director
FROM: Wendy Reiter, Director, Airport Security
Eileen Francisco, Director, Aviation Project Management
SUBJECT: Primary Fire Station Early Work Package and Construction Authorization
(CIP #C801256)
Amount of this request:
$6,700,000
Total estimated project cost:
$29,922,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to (1) authorize enabling
construction work for the Primary Fire Station project and (2) procure long lead items. The total
request for this action is $6,700,000 for a total authorized budget of $14,000,000. Remaining
budget to be authorized is $15,922,000 for a total project budget of $29,922,000.
EXECUTIVE SUMMARY
Station 1, the Airport’s primary fire station (also known as the Aircraft Rescue and Fire Fighting
or ARFF facility), supports an essential life-safety function for the Airport: providing space for the
Airport’s first responder Firefighters to work and live while on duty. The project will ensure that
these Firefighters are given a facility that supports their ability to perform at their best and deliver
the facility now rather than extending deferment for a facility that will be built in the future.
This request is to authorize funding for the construction of enabling work to improve the project
schedule and shift the work associated with the solarium roof into more favorable weather
condition months. The enabling work will involve moving the fire fighters into two construction
trailers placed inside the North apparatus bay which will serve as the temporary dormitories
during construction of the new dormitories within the fire station.
The full program would provide needed updates to improve working and living conditions. The
updates include improvements to the station’s Heating Ventilating and Air Conditioning (HVAC)
systems, improvements to working conditions including building data distribution, and
improvements to living conditions including reconfiguring the station’s dormitories. This project
will provide necessary renewal, replacement, and updating of facilities and infrastructure that
COMMISSION AGENDA – Action Item No. 8f Page 2 of 6
Meeting Date: May 28, 2024
Template revised June 27, 2019 (Diversity in Contracting).
have been in operation in the existing fire station for decades. These systems are outdated or at
the end of their useful life. The project team will return in October 2024 to request construction
authorization for the remaining scope of work.
The amount of this request is $6,700,000 for enabling construction work and the procurement
of long lead items.
JUSTIFICATION
Construction authorization for the enabling work is required to provide temporary sleeping
quarters for the fire fighters in the North apparatus bay which will allow for the full program work
to begin sooner. The fire fighters will be relocated temporarily into two construction trailers that
will be modified into sleeping units like their current sleeping unit. This will allow the station to
maintain daily operations while construction of the new dormitories is in progress.
This fire station, also known as Station 1, is strategically located to provide the best response to
airfield and terminal incidents with immediate access to the airfield operations area (AOA) and
the airport landside roadways. Sequencing and phasing of the full program work is vital to allow
for ongoing operations during construction.
To minimize disruption to the fire station, the team has researched multiple scenarios to
determine which areas of the station can be under construction while allowing the fire fighters
access to their daily needs. Moving the fire fighters into their temporary sleeping quarters will
allow construction of both East and West side dormitories to occur in the same phase.
Diversity in Contracting
This project has contracted design and engineering services using an existing 2018 Indefinite
Delivery Indefinite Quantity (IDIQ) contract with a Small Business requirement of 5%. To date,
this design effort has achieved 18% participation.
Looking forward, working with the Port’s Diversity in Contracting team, the GC/CM construction
contract WMBE participation aspirational goal has been set at 10%.
DETAILS
The intent of this project is to replace the existing HVAC systems, including the existing kitchen
range and dedicated exhaust, to provide needed utility and modern temperature controls that
the existing systems are no longer capable of delivering. During the summer months, spaces such
as the dining area with the solarium roof become very hot and the HVAC system is not capable
of cooling the space.
In conjunction with the HVAC and utility upgrades and to meet current energy code
requirements, the solarium roof will be modified to a solid roof with skylights. This will reduce
the heat gain in this area and provide better temperature control in the dining and kitchen areas.
COMMISSION AGENDA – Action Item No. 8f Page 3 of 6
Meeting Date: May 28, 2024
Template revised June 27, 2019 (Diversity in Contracting).
The project will also reconfigure the two existing dormitories to better meet current life safety
code, reduce noise, increase privacy, and provide greater utility. Currently, each sleeping unit is
separated by lockers and privacy curtains. The renovated dorms will provide individual sleeping
rooms separated by full height walls and doors.
Scope of Work
The primary fire station construction work has been broken into two parts:
Enabling Work
(1) Interior modifications to North apparatus bay to house two construction trailers to be
used as temporary sleeping quarters for fire fighters while new dormitories are under
construction.
(2) Installation of temporary air handling unit and power to construction trailers.
(3) Interior build out of construction trailers to provide individual beds, lockers and privacy
curtains for fire fighter sleeping units.
(4) Procurement of mechanical upgrade equipment that has a long manufacture and
delivery time to mitigate the impact to the construction schedule. These include two
new air handling units, heat pumps, and kitchen range.
Full Program
(1) Maintain full building occupancy and operation during construction.
(2) Replace HVAC systems, including two air handling units, that are past their useful life.
(3) Replace/upgrade electrical system including a new service transformer, in part, to
support the HVAC system replacement.
(4) Modify solarium roof in dining area to alleviate hot temperatures in the warmer months
that make the dining area uncomfortable. This is in direct relation to the HVAC system
upgrade and improving living conditions for the fire fighters.
(5) Replace existing kitchen range including exhaust hood required to coordinate with the
HVAC system replacement.
(6) Renovate and remodel the two existing dormitories to better meet code, reduce noise,
and increase privacy.
(7) Modify/upgrade the station’s portion of the Airport’s computer automated
dispatch/alarm notification system for unit call-out to support the dormitory renovation
objective.
(8) Install electric vehicle (EV) charging stations as part of Environmental “SPARC”
initiatives. The fire station is scheduled to receive EV fleet vehicles in Q4 2024.
COMMISSION AGENDA – Action Item No. 8f Page 4 of 6
Meeting Date: May 28, 2024
Template revised June 27, 2019 (Diversity in Contracting).
Schedule
Activity
2024 Q4
2024 Q4
2025 Q1
2025 Q1
2026 Q2
Cost Breakdown
This Request
Total Project
Design
$0
$5,000,000
Construction
$6,700,000
$24,922,000
Total
$6,700,000
$29,922,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Among the alternatives considered, continuing the practice of minimal investment in piecemeal
repairs or low-cost targeted improvements were found not viable to address the core issues
facing first responders working and living in the primary fire station.
Alternative 1 – Delay the construction of enabling work and long lead equipment procurement
and combine with full project scope in Q1 of 2025.
Cost Implications: $1,000,000
Pros:
(1) Delays capital and expense investment by approximately 4 months
Cons:
(1) Prolongs the improvements that support the fire fighter’s ability to perform at their
best.
(2) Postponing the temporary dorm work does not allow the project team to improve the
schedule so the solarium work can be done during more favorable weather months.
(3) Delays the procurement of long lead equipment which could adversely affect overall
project duration.
(4) Increased cost due to constantly changing labor rates, supply chain issues and
escalation.
This is not the recommended alternative.
COMMISSION AGENDA – Action Item No. 8f Page 5 of 6
Meeting Date: May 28, 2024
Template revised June 27, 2019 (Diversity in Contracting).
Alternative 2 – Authorize funding for the construction of the enabling work and procurement of
long lead equipment as requested.
Cost Implications: $6,700,000
Pros:
(1) Improves schedule by allowing enabling work to start prior to design completion for the
full program scope.
(2) Allows for procurement of long lead equipment as part of the enabling package to
mitigate any schedule delays due to supply chain issues.
(3) Allows for exterior solarium work to occur in the more favorable weather conditions
and thus avoiding potential delays due to inclement weather.
(4) Provides better cost certainty for the enabling package.
Cons:
(1) Separates the project scope into two parts and thus extends the duration of disruption
to the ongoing fire station operations.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$20,000,000
$0
$20,000,000
Previous changes – net
$5,000,000
$0
$5,000,000
Current change
$4,922,000
$0
$4,922,000
Revised estimate
$29,922,000
$0
$29,922,000
AUTHORIZATION
Previous authorizations
$7,300,000
$0
$7,300,000
Current request for authorization
$6,700,000
$0
$6,700,000
Total authorizations, including this request
$14,000,000
$0
$14,000,000
Remaining amount to be authorized
$15,922,000
$0
$15,922,000
Annual Budget Status and Source of Funds
This project, CIP C801256, was included in the 2024-2028 capital budget and plan of finance with
a budget of $25,000,000. A budget increase of $4,922,000 was transferred from the Aeronautical
Allowance CIP (C800753) resulting in zero net change to the Aviation capital budget. The funding
source will include the Airport Development Fund and revenue bonds. This project was presented
to the airlines as a required Majority-in-Interest (MII) on May 19, 2022. After consultation with
the airlines, airport management elected to utilize the Signatory Lease and Operating Agreement
(SLOA) IV Discretionary new project provision which exempts this project from MII approval. This
COMMISSION AGENDA – Action Item No. 8f Page 6 of 6
Meeting Date: May 28, 2024
Template revised June 27, 2019 (Diversity in Contracting).
provision provides the airport with up to $42 million of aeronautical rate base project costs that
may be exempt from the MII review during the term of the agreement.
Financial Analysis and Summary
Project cost for analysis
$29,922,000
Business Unit (BU)
Fire, project allocates 95.36% rate base cost to airlines
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
$0.16 in 2026
Future Revenues and Expenses (Total cost of ownership)
The upgrades to the inefficient mechanical system and aging infrastructure will improve overall
operation and maintenance of the fire station. The project team will coordinate with Aviation
Maintenance on costs associated with this building as the design develops further.
ADDITIONAL BACKGROUND
Station 1 is located north of the airport directly west of the intersection of the airport expressway
and South 170th Street. This building consists of a 30,150 square foot main floor and 4,840 square
foot upper floor. The building has undergone some minor upgrades since its original construction
in 1977, the most substantial of which was the build out of the west carport into a new apparatus
bay in 2008. However, the greater part of the building and its core systems such as HVAC and
electrical, are original to the building.
Investment in the facility has always been measured against the anticipated short remaining life
of the facility. This has led to past deferrals of projects intended to address renewal and
replacement. The systems and infrastructure of the existing facility are, for the most part, original
and well past their useful life and significantly behind current operational standards.
ATTACHMENTS TO THIS REQUEST
(1) Presentation
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
June 28, 2022 – The Commission authorized $7,000,000 to facilitate the following actions: (1)
complete design, (2) use the General Contractor/Construction Manager (GC/CM)
Contracting Method, (3) advertise and award a GC/CM Construction contract, (4) execute
a pre-construction services contract, including enabling construction work and early work
packages, (5) execute change orders over $300,000 where cost is within Authorized
Budget, (6) include and use a project labor agreement as part of the GC/CM contract, and
(7) use Port crews in support of the Primary Fire Station Continuing Operations
Preservation Project.