To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Mark Marlowe, P.E., Director of Castle Rock Water
Roy Gallea, P.E., Engineering Manager
Josh Hansen, P.E., Project Manager Supervisor
Frank N. Main, Project Manager
Title
Resolution Approving the Second Amendment to the Services Agreement with Muller Engineering Company, Inc., for the McMurdo Gulch Stream Reclamation Priority No. 3 Project for Supplemental Services
Body
________________________________________________________________________________
Executive Summary
Castle Rock Water (CRW) staff seeks Town Council approval of a Resolution (Attachment A) approving the Second Amendment to the Services Agreement with Muller Engineering Company, Inc., for the McMurdo Gulch Stream Reclamation Project Priority No. 3 - Supplemental Design, Bid, Construction and Post Construction Services (Exhibit 1).
This Amendment is to account for an additional 12-months due to project delays during the bidding process and negotiation process of the easements and deed restriction. The new revised agreement amount would be $459,173 which is outside the original Council Authorization of $395,951.60 ($359,956 agreement and $35,995.60 contingency).
April 29, the 1st Amendment, which was within the Council approved contingency, was approved to the Services Agreement with Muller for the McMurdo Gulch Stream Reclamation Priority No. 3 - Supplemental Design, Bid, Construction and Post Construction. This amendment included a cost increase to the Service Agreement in the amount of $24,386.00 with a time extension to December 31, 2025.
1st Amendment Budget impact shown below:
|
Fund Description |
Account Number |
Original Agreement |
Amendment 1 |
Total |
|
McMurdo Gulch Stream Stbl |
212-4475-444.75-51 |
$359,956 |
$24,386 |
$384,342 |
This proposed Second Amendment, which will exceed the initial Council approved contingency amount, includes a cost increase to the Service Agreement in the amount of $74,831 with a time extension to December 31, 2026. The cost increase is primarily due to the time extension and additional administration, easement acquisition, deed restriction, and construction management services.
Budget Impact
With the approval of the proposed Second Amendment the authorized agreement amounts of $395,951.60 (Agreement $359,956 plus Contingency of $35,995.60) originally approved by Council will be exceeded in the amount of $74,831.
Amendment 1 increased the Agreement with Muller amount by $24,386 and was covered by the original contingency amount. Approving of the proposed Second Amendment in the amount of $74,831 would bring the total Agreement amount to $459,173. Staff recommends retaining the remaining original contingency of $11,609.60 to help offset potential changes that may arise during construction of the project.
Funds for this Services Agreement are to be drawn from the McMurdo Gulch Stream Reclamation Project Priority No. 3 - Supplemental Design, Bid, Construction and Post Construction Services Account #212-4475-444.75-51. A budget transfer in the amount of $74,831 to cover this expenditure will be required from Account #212-4475-444.78-73 CMP Rehabilitation, which has adequate funds in its 2025 budget of $157,829.
|
Fund |
Account Number |
Original Agreement |
1st Amend |
2nd Amend |
Revised Agreement Total |
|
McMurdo Gulch Stream Reclamation |
212-4475-444.75-51 |
$359,956 |
$24,386 |
$74,831 |
$459,173 |
With the approval of Second Amendment there will be a remaining balance in the Contingency of $11,609.60.
Staff Recommendation
Staff recommends Town Council approval of the Resolution to approve the Second Amendment to Services Agreement with Muller Engineering Company, Inc., for the McMurdo Gulch Stream Reclamation Project Priority No. 3 - Supplemental Design, Bid, Construction and Post Construction Services in the amount of $74,831 with a new expiration date of December 31st, 2026.
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
Staff Report
Attachment A: Resolution
Exhibit 1: Agreement