b'FUELINGTUS 33had to be replaced, says Bourdeau. We were having more and more mechanical problems with it. As a result, we asked Burns & McDonnell to extend our agreement with them and help us come up with a solution on financing.One of the keys to accomplishing this was an agreement about when the engineering consultant firm would get paid. We did charge [the consortium] upfront for the initial cost analysis work, explains Smith. However, we agreed to delay getting most of our fee until all the financing was in place, and construction actually began.Details regarding the exact scope of the project could not be determined until the design process was further along. Instead of charging the fuel consortium its regular fee for that work, Burns & McDonnell agreed to cover those upfront costs. After a contract with Tucson Fuel Facilities was finalized, our team went through the process of developing a capital budget for the new facility through internal design work and cost estimating, Smith says. We also agreed to supervise the design, all construction phases and operations training. We are responsible for delivery and the final product, and all this required us to work closely with airport officials from start to finish. They were very helpful in helping us get permits approved from the fire department, environmental agencies and other local officials. Before any of this was done, the consortiums current lease with the airport had to be extended, Smith adds. A 30-Cost AnalysisIn the end, the team estimated it wouldyear term provided security for both the The engineeringcost between $15 million and $20 millionairport and its lending institutions. The consulting firm beganto upgrade the existing single-walledBurns & McDonnell team worked closely a detailed analysisunderground tank system. The cost for awith airport and consortium officials during of the existing fuelnew system with above-ground storagethe lease revision process. station in 2016. Thetanks and a new operations building wasWorking on the new lease was a electrical systemapproximately $25 million. complicated process that took months. was 40 years old,GRANT SMITH Not surprisingly, the relatively smallOur attorneys and the Tucson Fuel and in poor shape,price difference between the two optionsFacilities attorneys had discussions on states Grant Smith, director of themade the consortium lean toward buildingmany provisions, says Bewley. The final Commercial Fueling and Ramp Servicesnew. However, spending $25 millionlease amount will depend on the final Aviation Group for Burns & McDonnell.would be a challenge, explains Markfootprint of the fuel facility once it opens. Mechanical parts were at least 30 yearsBourdeau, global fuel procurement andAfter the new lease was signed, the old. The underground storage tanks wereoperations manager for Delta Air Linesfuel consortium was then able to shop single-walled; federal regulations for newand consortium chair at the time. All offor financing. This process was expedited installations now require fuel tanks to beour members knew the old fuel facilitybecause the airlines based at TUS had double-walled. was not feasible long-term, and that italready established themselves with AirportImprovement.comMarch | April 2022'