Title
Hydrant Fueling System Modification (Ordinance S-49196)
Description
Request to authorize the City Manager, or his designee, to enter into a sale and purchase agreement and to amend Hydrant and Fueling Agreement Lease No 57871-ARL with the Arizona Fueling Facilities Corporation (AFFC) for the modification of the fuel line hydrant system at Phoenix Sky Harbor International Airport.
Report
Summary
The AFFC is a consortium of airlines that operates under a ground lease for its piping system which allows the airlines to fuel their aircraft at the gates from hydrants tied to the system. The hydrant fueling system at Terminal 3 was modified and extended during the terminal modernization and inner ramp reconstruction projects to provide fueling service to six (6) additional gates on the South Concourse and to reconfigure the existing system on the North Concourse to accommodate a greater fleet mix. To facilitate the accelerated schedule for the projects, the Aviation Department included the design and construction of the hydrant fuel line into its building contract. Having completed both projects, the Aviation Department wishes to recover the cost of the improvements from AFFC through the sale of the assets.
Financial Impact
The total cost for design and construction is approximately $4.9 million. Following receipt of final payment by AFFC, the Aviation Department will transfer pipeline ownership by a bill of sale.
Concurrence/Previous Council Action
The City Council approved Ordinance S-38281 allowing the City to enter into amended and restated Lease Agreement No. 57871 with AFFC on Nov. 2, 2011.
The Business Development Subcommittee recommended approval of the item on Nov. 3, 2022 by a vote of 3-0.
The Phoenix Aviation Advisory Board recommended approval of this item on Nov. 17, 2022 by a vote of 9-0.
Location
Phoenix Sky Harbor International Airport, 3400 E. Sky Harbor Blvd.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.