To: Honorable Mayor and Members of Town Council
From: Robert Goebel, P.E., Director of Public Works
Title
Resolution: Approving the First Amendment to the Intergovernmental Agreement Between the Town of Castle Rock, Edward Kraemer & Sons, Inc. (dba Kraemer North America, LLC), and the Board of County Commissioners of the County of Douglas, State of Colorado Regarding Additional Funding for Additional Work as Associated with the North Meadows Drive Extension to US 85 and I-25 Project; and Approving Change Order No. 18 to the Town of Castle Rock Agreement for Negotiated Unit Price Development Up To a Fixed Contract Amount and Construction/GC Services (Bid Package 4 Work) [Increase to 4 lanes between Highway 85 and I-25]
Body
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Executive Summary
The purpose of this item is to provide Council with information to consider the approval of a resolution (Attachment A) to amend the current IGA with Douglas County that will allow the widening of Castle Rock Parkway between US 85 and I-25, and add roundabout bypass lanes to the I-25 interchange. This additional work would be added to the existing contract scope currently under construction through a Change Order and supplemental construction change orders to a not-to-exceed amount of $2,000,000 of which Town funds are $1,250,000 if approved.
The project was originally designed and bid as a two-lane backbone facility for the length of the North Meadows Extension to US 85 and I-25. Since that project was designed and bid, development plans for the Promenade were proposed and subsequently approved by Council. To ensure proper traffic operations in this area, staff recommends widening the roadway between US 85 and I-25 to its full build planned width of four lanes (two lanes in each direction) with the current project. Completing the work prior to opening of the facility will save significant costs of traffic control and reduce inconvenience to traffic. Also, economies of scale are realized as this becomes a part of a significantly larger contract.
Budget Impact
The total cost of the widening and bypass lanes is expected to be $1,400,000 - $2,000,000 and will be based on established pricing in the existing contract with Kraemer North America. Final quantities for elements of this additional work are currently being developed. The Town, County, and Kraemer expect that the final pricing will fall within the range estimated.
The financial health of the project is positive. The current unencumbered funds available for the project of $3,560,027 are a result of completing prior work packages under budget and additional direct payments to the contractor from the adjacent developer along the entire project length. Sufficient funds are available in the unencumbered balance to provide for this work and all anticipated additional expenditures for the project such as additional railroad flagging, additional inspection/testing services, possible additional earthwork, and ROW settlement costs. Further, we anticipate future releases of encumbered funds as work packages are completed.
Douglas County continues to be a vital partner in the overall project and the completion of this additional work to the project by providing a minimum of $750,000, and a maximum of $900,000 to this additional work. The County commits to funding 100% of the cost of the bypass lanes estimated to cost $400,000 - $500,000, with any remainder to be used for the widening work. To achieve the maximum funding level of contribution of $900,000 from the County, the County is working directly with CDOT to relieve them of $150,000 of County obligations to another project in a separate IGA between the County and CDOT.
Using the highest limit of the cost estimate for this additional work as $2,000,000, and the lowest range of additional contribution from the County of $750,000, the Town’s obligation would be the remainder of $1,250,000. These funds are available in the unencumbered balance of the project budget.
Right of way needed for the addition of the bypass lanes has been dedicated to the Town by the land owner.
Should the Council not wish to pursue this additional work, those funds could be used on other Town Transportation priorities.
Staff Recommendation
Staff recommends approval of the resolution for the following reasons:
• Furthers the Town and County partnership and commitment to the project and citizens of Castle Rock and Douglas County
• Reduces impact to the travelling public by otherwise constructing after Castle Rock Parkway is open to traffic
• Reduces costs for this work by eliminating significant traffic control
• Reduces costs by achieving economies of scale with the larger project
• Supports Town’s Mission, Vision and Values
Proposed Motion
“I move to approve a Resolution approving the First Amendment to the Intergovernmental Agreement between the Town of Castle Rock, Edward Kraemer & Sons, Inc. (dba Kraemer North America, LLC) and the Board of County Commissioners of the County of Douglas, State of Colorado regarding additional funding for additional work associated with the North Meadows Drive Extension to US 85 and I-25 Project; and approving Change Order No. 18 to the Town of Castle Rock agreement for Negotiated Unit Price Development up to a fixed contract amount and construction/GC Services (Bid Package 4 Work).”
Attachments
Attachment A: Resolution