To: Members of the Castle Rock Water Commission
From: Mark Marlowe, P.E., Director of Castle Rock Water
Roy Gallea, P.E., Engineering Manager
Erin Evans, P.E., Project Manager
Title
Resolution Approving the First Amendment to the Progressive Design-Build Agreement with S.J. Louis Construction, Inc. for the Sedalia Lift Station and Force Main to Plum Creek Water Reclamation Authority Project [Located in Sedalia, CO]
Town Council Agenda Date: September 16, 2025 - DRAFT
Body
________________________________________________________________________________
Executive Summary
Castle Rock Water (CRW) seeks Town Council approval of a Resolution (Attachment A) approving a First Amendment (Exhibit 1) to the Sedalia Lift Station and Force Main to Plum Creek Water Reclamation Authority (PCWRA) Project Progressive Design-Build (PDB) agreement. The proposal is for the amount of $997,179.47. Including eliminating the original contingency of $63,320.30, plus a 10% contingency of $99,717.95 on the Amendment 1 services, the total authorization amount is $1,033,577.12.
The Sedalia Lift Station and Force Main project is to design and build the main wastewater conveyance line for the town of Sedalia, Colorado and the surrounding area as shown in Attachment B, however, sewer trunk lines and connections to residents and businesses will need to be constructed though system development fees to take full advantage of this project.
Phase 1 of the project is underway and includes up to 60% design. As prescribed by the PDB method, at 60% a Guaranteed Maximum Price (GMP) or a lump sum price is negotiated with the Design-Builder, S.J. Louis Construction, Inc. and CRW has the option to accept either for the completion of the project. A Phase 2 Agreement is then negotiated, approved by Town Council and the project completed by December 31, 2026.
Through the course of Phase 1, the Design-Builder proposed a schedule saving measure to separate the Phase 2 design completion scope from the construction/GMP scope. This Amendment is to approve Phase 2 design services from 60% to final design only. A separate amendment will be requested for the construction GMP portion of the project.
Notification and Outreach Efforts
Douglas County has posted a news article on their web page about this Highway 85 Southern Corridor Wastewater Project. ToCR has approved the Douglas County IGA which specifies this project. ToCR has been working with Douglas County and local stakeholders to connect to the system.
History of Past Town Council, Boards & Commissions, or Other Discussions
CRW staff presented this item to the Castle Rock Water Commission at their meeting held on November, 2024, and the Castle Rock Water Commission voted to recommend Town Council approval of the Resolution as presented.
On January 7, 2025 Town Council approved the Progressive Design-Build Agreement with S.J. Louis Construction, Inc. for the Sedalia Lift Station and Force Main to PCWRA Project.
As per the Amended and Restated IGA with Douglas County for the Highway 85 Wastewater Collection and Treatment System, approved by Town Council on July 2, 2024, Douglas County will fully fund an Escrow Account of $14,000,000 in American Rescue Plan Act (ARPA) funds for CRW to withdraw payment to contractors for the project based upon the submitted invoices to Douglas County and their subsequent approval.
In August, 2025 Douglas County and CRW approved an amendment to the IGA adjusting the project funding amount to $18.8 million, with CRW funding the shortfall of approximately $4.8 million.
Discussion
The Sedalia Lift Station and Force Main to PCWRA Project will benefit Sedalia residents and businesses by eliminating the need for onsite septic systems for their respective residential and facility wastewater treatment. The reduction of onsite wastewater treatment systems along the East Plum Creek corridor will assist in improving the water quality of East Plum Creek and Plum Creek, a water supply source for the Town of Castle Rock (ToCR). The project is funded by the American Rescue Plan Act through Douglas County with CRW acting as the Project Manager for the project and eventually operating the system for the benefit of the community. The key stakeholders planning to discharge into the lift station for conveyance to PCWRA are the Douglas County School District, CORE, Sedalia Water and Sanitation District water customers, current developers with development proposals in-process with Douglas County and Cherokee Ranch.
The project is to design and build the main wastewater conveyance line for the town of Sedalia, Colorado and the surrounding area. Currently, the project is in Phase 1 and approaching the 60% design milestone for both the lift station and force main as shown in Attachment B. The 12” HDPE force main alignment has been determined from Sedalia to PCRWA paralleling Highway 85 and BNSF and UPRR railroads. The alignment also passes through multiple private properties including CORE electric. Location for the lift station has been determined and designs are progressing toward 60%.
The construction delivery method for the project is a Progressive Design-Build (PDB) method to ensure that the ARPA budget is achieved. As prescribed by the PDB method, at 60% design a Guaranteed Maximum Price (GMP) or a lump sum price is negotiated with the Design-Builder, S.J. Louis Construction, Inc. and CRW has the option to accept either for the completion of the project. A Phase 2 Agreement is then negotiated, approved by Town Council and the project completed by December 31, 2026.
CRW and the PDB team have discussed options to accelerate schedule for the overall project to maintain our required completion date in 2026. It was proposed that the team doesn’t wait until the 60% milestone and completion of the GMP pricing efforts to complete the remainder of the project design. Instead, CRW is looking for approval to proceed with this First Amendment to proceed with design completion while the GMP is generated and negotiated, saving the project timeline approximately three months overall.
Amendment 1 services include permitting coordination such as CDPHE, Douglas County, CDOT, BNSF, and CORE Electric, environmental investigations, easement support and engineering design development from 60% to 100%.
CRW staff seek Town Council approval of these amendment 1 services. Upon acceptance, S.J. Louis will proceed with the work with an estimated completion date of December 2025.
Budget Impact
The 30% project budget estimate is $18.8 million total. $14 million of funding for this project is being paid for by Federal American Rescue Plan Act funds granted to Douglas County and project administered by CRW. CRW will receive a 1% Project Management fee of up to $140,000.00 for the management of the project. CRW will then fund the remaining $4.8 million. The projected costs for the project are:
|
Description |
Amount including contingency |
|
S.J. Louis PDB Phase 1 - to 60% and GMP |
$0.697M |
|
S.J. Louis PDB Phase 2 - 60% to Final (this amendment) |
$1.034M |
|
S.J. Louis Construction - Single FM & LS |
$15.751M |
|
Permanent Easements |
$0.473M |
|
Temporary Easements |
$0.158M |
|
Lift Station Land Purchase ~ 1 Acre |
$0.350M |
|
Western States/Kilty |
$0.246M |
|
CRW Project Management Fee at 1% |
$0.140M |
|
Total |
$18.8M |
As per the IGA with Douglas County, expenses to be reimbursed to CRW from the escrow account will be processed through GL Account # 213-4575-445.79-38 - 85 Regional Wastewater.
Staff Recommendation
Staff and Castle Rock Water Commission recommend that Town Council approve the First Amendment to the Progressive Design-Build Agreement between the Town of Castle Rock and S.J. Louis Construction, Inc. Douglas County, Special Projects also recommends approval of this amendment based on their review of the proposal.
Proposed Motion
“I move to approve the Resolution as introduced by title.”
Alternative Motions
“I move to approve the resolution as introduced by title, with the following conditions: (list conditions).
“I move to continue this item to the Town Council meeting on _____ date to allow additional time to (list information needed).”
Attachments
Attachment A: Resolution (Not Attached)
Exhibit 1: Agreement (Not Attached)
Attachment B: LS and FM Location Map