UNITED AIRLINES DENVER INTERNATIONAL AIRPORT. May 2014

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1 UNITED AIRLINES DENVER INTERNATIONAL AIRPORT May 2014 CHELSEA FLIGHT KITCHEN FACILITY ASSESSMENT By JBT AEROTECH 1

2 Table of Contents 1. Introduction / General 2. Facility Exterior / Structural / Roof 3. Facility Interior 4. Fire Protection (Central) / Boiler Systems 5. Plumbing Systems 6. Mechanical and Refrigeration Systems 7. Electrical and Lighting Systems 8. Miscellaneous / Building Automation & Control Systems 9. Repair / Replacement / Life Cycle Analysis 10. Conclusions 2

3 Introduction The enclosed assessment provides a high level, non-intrusive, observation of the operating condition, reliability and asset value of the facility and systems for the United Airlines Chelsea Flight Kitchen facility at the Denver International Airport. The assessment and analysis is based on an onsite review performed on April 28, 2014 and involved a through walk-through of the facility and discussions with onsite personnel responsible for the routine maintenance of the facility. For those systems listed in the Table of Contents above, the assessment also provides general statements, with pictures for each system, regarding the information listed below: - Overall condition/appearance (i.e., good, average, poor) - Current operability (i.e., operable, non-operable) - Mandatory and/or critical repairs required - Missing and/or disassembled system components and/or sub-components - Probable operational reliability absent capital investment - Near-term capital renewal or rehabilitation requirements Matrices are provided at the end of the report that identify specific systems and components and provide design life expectancies and as is remaining life estimates as well as estimated costs required for specific system and/or component repair or replacement. The assessment also provides an estimate of the cost of a new similar facility based on current average new construction costs in the Denver area. The lease agreement provided by United Airlines makes reference to maintaining and making repairs and replacements to equipment that has an expected life of greater than (12) years. All of the equipment and assets reviewed in this report generally have life expectancies exceeding (12) years. It should be noted that some level of preventive maintenance has evidently been performed on the systems assessed within the Chelsea facility but work order or written PM documentation was not reviewed. As such, it is difficult to assess the level or frequency of that maintenance activity. However, it was noted that the maintenance crew at Chelsea uses a maintenance management program and supports that program with subcontractors who typically perform annual and required maintenance functions that are outside the resource capabilities of the existing crew. The assessment is based solely on visual and non-destructive analysis and on discussions with maintenance personnel and subcontractors who have had previous maintenance and/or repair responsibility for the equipment and/or assets. 3

4 A good program of preventive maintenance should be adhered to and is intended to prevent (or mitigate) system or equipment failure and includes recommended inspections, repairs, cleaning, painting, and adjustments. Compliance with lubrication procedures is particularly important. While local conditions will determine to some degree the exact details of a good preventive maintenance program, a comprehensive maintenance program should always be in place. This assessment includes analysis on building infrastructure, mechanical, electrical, plumbing and associated equipment, refrigeration and ice making equipment and some pieces of kitchen equipment. The assessment makes no analysis or reference to code compliance and assumes that all systems and equipment were code compliant upon initial construction and that any initial and/or subsequent code compliance or regulatory issues have been addressed by the owner and/or subtenant. General The Chelsea facility was constructed in 1994 and consists of a 65,000 sq. ft. flight kitchen facility including delivery and receiving truck docks and administrative space as well as paved ramp for truck circulation and parking. The facility is in fair condition overall with average wear and deficiencies for a facility constructed twenty years ago. The exterior of the facility is in fair condition and benefits from a recent roof replacement. The interior is also in fair condition but also shows the wear of 20 years of use. Most of the equipment and systems within the facility are in fair condition but also show their age and 20 years of use even though the operation incorporates a relatively robust maintenance program. The facility has incurred structural damage over numerous years due to expansive soils in the area around the airport. These are evident in numerous areas in and around the facility and are particularly noted in Exterior and Interior sections of this document. The situation is exacerbated by runoff from the berm adjacent the runway/taxiway area causing water to infiltrate the building under heavy rains. 4

5 Building Exterior Facility Exterior and Signage - Cracked tile and leaching of minerals - Damage/deterioration of signage on front and side of facility - Tile/grout replacement - Potential crack in wall system behind tile - Sign repair/replacement may or may not be warranted depending upon facility swap 5

6 Exterior Facility Entrance walkway and stairs - Cracks in concrete around railing - Deterioration of concrete on vertical stairs - Settling of concrete partition for planter - Saw-cut and dowel-in new (high PSI) concrete with reinforced rebar and anti-skid plates 6

7 Parking Lot Parking lot issues - Cracks in concrete - Cracks around trench drain systems - Faded parking lot paint striping near vehicle spots - Rod & fill cracked areas with sealant -or- - Saw-cut and replace damaged areas - Restripe parking lot 7

8 Entrance Soffit Entrance soffit - Water damage from roof membrane leak - ¼ opening in cap strip sealant - Repair soffit and associated damage (paint to match) - Remove and reseal cap strip sealant 8

9 Exterior Fence/Gate View of exterior fence and gate. - Bent/damaged rolling gate - Missing top horizontal support bar on fence - Lower tension wire lacks tension - Install replacement horizontal support and associated hardware - Re-tension fence and lower tension wires - Rear Entrance/Exit gate inoperative 9

10 Facility Interior / Structural Interior cinderblock wall and exterior loading dock wall - Cracked cinderblock wall from expansive soils and facility settling - Cracked concrete at loading dock wall - Fill cracks with anchor cement - As concrete begins to fail, saw cut, dowel, and rebar and form replacement areas Certain areas of structural damage in the facility may require structural engineering analysis and repairs that are in excess of those listed above. 10

11 Interior Wall / Floor Joint Damage Electrical Room Boiler / Electrical Room - Cracks in cinderblock wall of electrical room - Expansive soil issues and settling of facility has widened expansion joints and caused sealant failures Investment required: (Parts and labor) - Align and seal cracks - Remove existing expansion joints/ sealant and reseal Certain areas of structural damage in the facility may require structural engineering analysis and repairs that are in excess of those listed above. 11

12 Roof System Roof Membrane EPDM roof membrane replaced in Uneven surfaces allowing ponding of water and will lead to premature roof failure - Membrane heat bond not secured in all areas (some lifting/bubbles) - Pads becoming unsecured around the perimeter - Un-bonded wear mat - Some lightning rods missing and cable detached Investment required: - Request bonding for lifting areas (may be under warranty) - Lifting pads should be re-secured to EPDM membrane - Ponding issues should be addressed - Routine maintenance should be performed on the roof to remove wind-blown articles, roof area related repair and construction debris, etc. - Re-secure un-bonded wear mats - Replace missing lightning protection rods - Secure cabling 12

13 Interior - General Interior Walls and Floors - Interior walls are generally in good condition and indicate recent rework and paint - Floors are generally in good condition although high traffic areas show wear and are in need of replacement - This is evident in the carpeted areas of the administration offices as well as in tiled areas of the restrooms - Replace areas of worn carpeting in office areas and worn floor tiles in restroom/other areas 13

14 Interior / Ceilings Ceiling tiles and grid - Delaminating surface due to age/humidity - Bent ceiling tile grid (settling and wind drafts from open doors) - Ceilings in office areas are generally in good condition - Ceiling tiles with food grade membranes can be cleaned by hand or replaced - Deformed ceiling tile grid should be replaced 14

15 Cafeteria Cafeteria window walls - Cracks in glass - Displacement of molding and trim at the base of the window - Water damage from past roof leaks - Settling door frame showing daylight in seal - Replace window glass - Repair and silicone trim in place - Replace water damaged material (patch and paint) - Shim door and add appropriate weather seal 15

16 Cafeteria Cafeteria serving line wall/floor - Wall is uneven and wavy due to expansive soils issue and settling of the building - Loose/lifting VCT - Vinyl wall siding is separating due to shifting/settling - Replace loose/bubbled VCT flooring - Re-secure joint over VCT sheets 16

17 Facility Maintenance Office Facility maintenance office window - Broken window pane - Replace broken window pane Facility maintenance office - Facility maintenance office is organized and house kept and indicates a relatively robust maintenance program 17

18 Fire Protection / Boiler Systems Emergency Diesel Engine Fire Pump and Fire Sprinkler systems appear to be in good condition and show up to date inspections. The two Cleaver Brooks natural gas boilers appear to be well maintained and show up to date inspections as well. 18

19 Boilers and Chemical Feed Boiler and chemical feed. - Sight-glass is leaking steam and should be replaced (spare on-hard) - Associated chemical quill piping showing corrosion - Steam leaks from valves apparent near heat exchanger - Associated piping needs to be reinsulated Investment required: - Replace sight glass - Replace chemical quill piping - Repair steam leaks and check steam distribution piping - Re-insulate associated piping 19 Eye bolts and chains in tunnel wall are a catch hazard for passengers and should be removed.

20 Water Softener Water Softener Systems / Brine Tank Culligan 200 Gallon Water Softener - Leaky control head assembly - Rusted resin tank - Sediment deposits in brine tank Investment required: - Recommend replacement of entire water softener unit - Recommend emptying and cleaning of brine tank on a quarterly or semiannual basis Eye bolts and chains in tunnel wall are a catch hazard for passengers and should be removed. 20

21 Gray Water Drains Boiler Room Drains. - Drain does not flow; suspected collapse of underground sanitary line (pump currently transferring water to another drain system). - Drain cover has been damaged and may be a trip hazard Investment required: - Pipe scope inspection to determine drain line integrity - Underground repair of drain - Replace and clean drain cover and surrounding areas Expansive soil issues may have caused sanitary drain line failure and may require pipe scope inspections and/or replacement of drain lines. Eye bolts and chains in tunnel wall are a catch hazard for passengers and should be removed. 21

22 Domestic Water Storage Tank Domestic Water Tank 1,000 Gallon A O Smith Tank - 1,000 gallon domestic water tank appears to be leaking (location unknown due to jacketing) Investment required: - Replace leaking domestic water storage tank Some general maintenance is required in and around the mechanical room. 22

23 Domestic Hot Water Hot water piping and heat exchangers - One heat exchanger replaced recently - Piping requires re-insulation - (1) heat exchanger is leaking (appears to be long-term) from the flange and will most likely require replacement Investment required: (Approx. parts and labor) - Re-insulate piping - Replace leaking heat exchanger Eye bolts and chains in tunnel wall are a catch hazard for passengers and should be removed. 23

24 Air Compressors Boiler Room Compressor (2) Champion 15hp - Oil leak on one compressor cylinder head - Unit is showing low oil Investment required: - Remove compressor head assembly and replace seals - Check and maintain oil levels 24

25 Rooftop Exhaust Fans Roof-mounted exhaust fans. - Numerous exhaust fans appeared to not be functioning. It was not known whether they were activated by equipment or were inoperative. - Hot Foods exhaust fans may allow grease and food to be spilled onto roof membrane - Test and replace inoperative exhaust fans - Add drip buckets to collect grease to prolong roof membrane life 25

26 HVAC & Coils Condenser and evaporator coils. - Condenser coils show weathering and hail damage - Evaporator coils have recently changed filters but require annual cleaning to maintain proper heat transfer - Outside air/economizer damper linkages are disconnected leading to inadequate ventilation and increased energy consumption - Utilize coil brush to open airflow - Add hail guards to coils - Implement an annual coil cleaning program using non-corrosive chemicals to prevent premature aluminum fatigue - Re-commission HVAC and controls systems and verify adequate outside air ventilation levels within the facility 26

27 HVAC and Coils View of HVAC heat sections - Gas valve is on but there are a few units that lack verifiable operation (potentially due to BAS issues) - Indications were that office areas were very cold in the winter and that frozen condensation existed on the windows at times - HVAC pans are rusted and holding water - Test and re-commission BAS and verify operation of heaters and associated economizer functions - Pans should be cleaned-out on a regular basis and treated with fungicide tablets annually. - Once rust starts on pans, they can be power-washed and/or beadblasted and coated with a rubberized coating to prevent further damage or be replaced 27

28 Refrigeration Equipment Refrigeration Equipment - Frozen compressor Ice Bin - Frozen refrigerant lines - Refrigerant line insulation is missing and/or damaged - Verify compressor block heater operation - Check refrigerant level and compressor pressure switch settings - Reinsulate refrigerant lines - Verify/correct inoperative evaporator fans 28

29 Refrigeration Equipment Thermal Images of compressors and refrigerant lines - Blast Chiller compressor is running excessively hot: 222*F (ideal temperature should not exceed 200*F) - Mechanical valve noise can be heard through compressor case via mechanic s stethoscope - Deterioration or missing insulation on refrigeration piping - Check oil, refrigerant charge and pressure switch settings on blast chiller compressor - Reinsulate associated refrigerant piping 29

30 Ice Plant & Ice Storage Bin Ice Plant Equipment Issues noted: - Ice plant equipment appeared to be maintained fairly well - Verify comprehensive routine maintenance program 30

31 Ice Plant & Ice Storage Bin Ice Plant Equipment - Lower bearing at ice surge bin is damaged/worn beyond limits - Frozen over evaporators in ice storage bin - Inoperative evaporator fans in ice storage - Replace ice surge bin bearing and hardware with food grade products (must be greased on a regular basis) - Verify operation of heat strips within ice storage bin - Replace/troubleshoot inoperative fans in ice storage bin evaporators 31

32 Blast Chiller View of Blast Chiller Evaporator Coils - Damage to coils from trays/carts - Corrosion damage to evaporator aluminum fins - Verify proper operation and refrigerant pressure - Clean coils with non-corrosive cleaner - Install impact protection to prevent future damage 32

33 Freezers/Coolers Evaporators in food storage area - Forklift damage to evaporator (unit appeared functional) - Verify drip pan drainage flow - Food preparation room coils showing aluminum corrosion and deterioration - Install forklift protection or remove storage racking near evaporator assemblies to prevent future damage - Monitor evaporator effectiveness and replace coils as necessary - Clean cold room evaporator coils o Refrain from using any corrosive cleaner on coils and rinse thoroughly after cleaning 33

34 Electrical Systems Electrical Room issues - Conduit abandoned/modified (should be removed or boxed and capped) - Numerous wall penetrations in multiple areas require fire stop caulking - Electrical panel schedules may have duplicate entries and lack definition on equipment served Investment required: - Box and/or cap unused conduit - Seal wall penetrations with fire stop - Update panel schedules/labels to reflect as-built service conditions and equipment served 34

35 Electrical Systems Electrical Room issues - Electrical systems were relatively clean and appeared to maintained well. Investment required: - Ensure annual electrical maintenance is performed on switchgear and electrical systems with routine IR scanning 35

36 Lighting Systems Lighting - It was noted that lights were on in unused rooms that and some T 12 fluorescent bulbs were still in use - Energy consumption is increased because of lights being on in unused rooms - It was also noted that a high number of metal halide fixtures are in use Investment required: - Replace T 12 bulbs with T 8 bulbs - Install occupancy sensors in low usage areas to reduce energy consumption - Investigate high efficiency T 5 and/or LED replacements for high bay lights 36

37 Miscellaneous - Warehouse Area Ceiling mounted heater unit. - Damaged heater housing remains mounted over warehouse storage area - Inoperative emergency exit light in warehouse area - Replace damaged gas-fired heater unit - Repair/replace emergency exit light 37

38 Miscellaneous - Dock View of warehouse roll-up/air doors. - Damaged Mars Air Door - Roll-up door drum spring failures - The fan appeared operational but headache bars should be installed to prevent further forklift damage - Replace spring in roll-up door drums 38

39 Miscellaneous - Fire Suppression View of fire hose cabinet and fire panel map. - Fire hoses have been removed and replaced with extinguishers - Supervisory alarms were noted on the fire panel - Replace fire extinguishers with hoses - Repair recently noted fire inspection discrepancies - Contact Fire Detection Suppression contractor to troubleshoot Supervisory Alarms 39

40 Kitchen / Hood Equipment - General Kitchen and Hood Equipment - Kitchen and hood equipment appeared to be maintained fairly well - Ensure annual maintenance and proper regulatory inspections 40

41 Building Automation / Controls Building Management System Controller - The control system is 2004 vintage Andover system that has not had any re-commissioning activity performed - Batteries past age limit noted - Functionality of HVAC Equipment is questionable as it has been reported that heat in some RTU(s) is not functional and the BMS is suspected - Replace batteries on BMS Controllers - Test & Re-commission equipment to verify functionality and check software routines for current building operation 41

42 Repair / Replacement / Life Cycle Analysis As indicated in this assessment, there are numerous repairs and/or equipment/system replacements that are recommended at the United Airlines Chelsea Flight Kitchen facility at the Denver International Airport. Infrastructure equipment and systems within the 20 year old facility indicate that they have generally received routine maintenance, occasional corrective repair and periodic replacement for certain critical systems. However and as indicated, there are various systems that require attention, repair and replacement in order for the facility to continue to function per intended design. The following is a listing of those repairs/replacements with approximate repair/replacement costs (as would be billed by subcontractors) using 2014 RS Means Maintenance and Repair Cost Data which includes labor and materials: Page Description Estimated Cost Replace cracked exterior tile $8,500 Repair stairs, handrail base, planter, and uneven walkway $25,500 Parking lot rod and fill cracks & restripe $24,000 Repair entrance soffit water damage $4,000 Reseal roof membrane cap strip w/ sealant $150 Fence/gate repairs $5,500 Fill cinderblock wall crack and paint wall $1,500 Repair electrical room cinderblock wall crack $1,250 Repair approximately 60' of expansion joint $1,150 Reseal EPDM membrane and wear mats $3,500 Replace missing lightning rods and secure cabling $850 Replace worn carpet in offide areas and floor tiles in restrooms $2,700 Ceiling tile and grid cleaning/replacement $4,500 Replace cafeteria window and adjust associated millwork $2,700 Repair water damage in cafeteria $5,500 Adjust doors and replace weather stripping $500 Replace lifting cafeteria VCT floor tiles $2,200 Replace facility maintenance office window $1,200 Replace boiler sight glass, leaking valves, and chemical quill piping $1,750 Replace 200 gallon water softener $34,000 Repair boiler room underground drain $14,000 Replace boiler room drain cover $150 Replace 1,000 gallon water storage tank $11,000 Replace heat exchanger $19,000 Reinsulate (2) heat exchangers and associated piping $1,200 Rebuild & reseal compressor head $3,600 Test and repair/replace inoperative exhaust fans on roof $8,500 Install grease collection bucket on hot foods exhaust fan $350 42

43 Clean/straighten condenser coils Clean HVAC coils Repair HVAC economizer linkages and test controls/draft motor Test gas valve for heater control and associate BAS controls Clean and coat HVAC drain pans (rust) Troubleshoot (2) frozen compressors (freezer and ice storage bin) $750 $4,500 $2,600 $3,400 $1,250 $3, Reinsulate associated refrigeration piping $1,600 Replace Blast Chiller compressor $7,200 Replace surge bin bearings and shaft $2,200 Replace storage bin evaporator fans (5) and verify defrost operation $900 Clean blast chiller coils and fabricate coil guard $3,500 Verify evaporator drip pan and patch as necessary $500 Clean cold room evaporator coils $3,500 Cap off unused electrical conduit $1,200 Fire seal associated penetrations into the electrical room $1,000 Record end-user equipment on electrical panel schedules $1,500 Replace ceiling mounted warehouse heater $3,700 Replace emergency light in warehouse $300 Replace (2) roll-up door barrell spring assembly ($1,100 per repair) $2,200 Replace (3) fire suppression hoses $1,300 Fire detection/suppression deficiency inspection repairs $3,400 Replace BAS Batteries $400 Recommission and test BAS functionality (HVAC, Parking lot lights, etc.) $13,000 Total Estimated Repair Costs $252,050 Replacement / Life Cycle The above listing represents recommended repairs and replacements for the facility to function per intended design for some period of time. As mentioned, a comprehensive maintenance program is required to sustain that functionality. However, as with all equipment and systems, those within the Chelsea facility have recommended life spans that depend upon various factors including operating environment, duty and schedules as well as the maintenance to which those items receive. Based on those criteria, the following represents a list of major equipment/systems at the Chelsea facility and design life spans and estimated remaining useful life for those items according current condition and current maintenance activity. The list includes estimated replacement costs (using RS Means cost data) that include labor and materials as well as subcontractor s O&P estimates: 43

44 Equipment Design Life (Yrs) Remaining Life (Yrs) Replacement Cost ($) Boiler - Cleaver Brooks - CB $300,000 Boiler - Cleaver Brooks - CB $300,000 Air Compressor - Champion 15 HP 25 5 $15,000 Air Compressor - Champion 15 HP 25 5 $15,000 Air Handling Units - Trane CFM 15 5 $26,000 Air Handling Units - Trane CFM 15 5 $41,000 Air Handling Units - Trane CFM 15 5 $17,000 Air Handling Units - Trane CFM 15 5 $22,000 Air Handling Units - Trane CFM 15 5 $24,000 Air Handling Units - Trane CFM 15 5 $24,000 Makeup Air unit - Trane CFM 15 5 $26,000 Makeup Air unit - Trane CFM 15 5 $25,000 Makeup Air unit - Trane CFM 15 5 $25,000 Makeup Air unit - Trane CFM 15 5 $25,000 Makeup Air unit - Trane CFM 15 5 $19,000 Stean Unit Heaters - (8) Higher Capacity 15 3 $16,000 Roof Hood / Exhaust Fans (12) 20 3 $48,000 Steam Traps (29) 7 1 $9,000 Condensate Pumps (3) 15 3 $9,000 Roof Top Package Units (5) 20 5 $150,000 The above list primarily includes mechanical equipment since most of the equipment is original install and since very little replacement activity has occurred. Additionally, most of the electrical equipment and systems at Chelsea are in good condition and have design lives of 30 years and remaining lives exceeding 10 years. As such, electrical systems are not included in the current equipment/systems replacement listing. Conclusions The United Airlines Chelsea Flight Kitchen facility at the Denver International Airport is in Fair condition. Infrastructure equipment and systems within the 20 year old facility indicate that they have generally received routine maintenance, occasional corrective repair and periodic replacement for certain critical systems. As indicated, there are various systems that require attention, repair and replacement in order for the facility to continue to function per intended design. 44

45 In an effort to assist United Airlines with assigning a value to the facility, current Building Cost Guide data was assessed for US facilities and for facilities in the Denver area. While benchmark building cost data is scarce for Flight Kitchen Facilities, benchmark cost data does exist for warehouse, cold storage and office facilities in various parts of the country. A composite of these along with a geographic normalization factor can reasonably be used to estimate the value of a new flight kitchen facility of similar size in the Denver area. Benchmark building cost data for those facilities is as follows: Facility Cost ($)/Sq. Ft. - Warehouse $53/sq.ft. - Cold Storage $126/sq.ft. - Office $158/sq.ft. For the Chelsea facility, the following square footage estimates are used for usage and value calculations: Chelsea Cost ($) - Warehouse (~50%) (65,000sq.ft.)(0.5)($53/sq.ft.) = $1,722,500 - Cold Storage ( ~25%) (65,000sq.ft.)(.25)($126/sq.ft.) = $2,047,500 - Office (~25%) (65,000sq.ft.)(.25)($158/sq.ft.) = $2,567,500 Total $6,337,500 Based on those averages, new construction costs for a similar facility as the Chelsea Flight Kitchen facility in Denver should be in the range of $6.3 M or at a composite ~$97.5 / sq. ft. These estimates certainly depend on numerous variables including types and quantities of equipment, finishes and amenities. Any final valuation and estimate should be performed by a general contractor and should be based on basis of design and/or actual design documents. The list of recommended repairs and associated costs, the life cycle summary of existing Chelsea equipment and the construction cost comparison are provided to United Airlines to assist in valuation calculations as they prepare to transfer facilities between Chelsea and the LSG facility. This information is based, as indicated, on a visual, non-intrusive inspection of the equipment and systems and should be used in conjunction with other analysis to arrive at final facility valuations. 45

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