To: Honorable Mayor and Members of Town Council
From: Jeff Brauer, Director of Parks and Recreation
Title
Resolution Approving the Construction Contract between the Town of Castle Rock and M.A. Mortenson Company for the Festival Park Construction Project
Body
______________________________________________________________________
Executive Summary
Three options for advancing the Festival Park Construction Project were discussed by Town Council on October 18, 2016. The options included: delaying the project indefinitely, modifying the existing design to match the funds available, and a third option, appropriating $450k as a loan from the General Fund to be paid back with DDA TIF Funds and $852,720 from Unobligated General Fund balance to complete the project as bid. Following the discussion, Town Council directed staff to present a construction contract with the M.A. Mortenson Company (Mortenson) to complete the project as designed.
Four bids were received September 13, 2016 and Mortenson provided the low responsive bid of $5,815,147. This bid price, in addition to permit, materials testing, design contingency and other costs that are not part of a construction contract, result in a total project cost of $6,391,052. $4,500,000 is currently available for construction, so an additional $1,891,052 is needed to complete the project as designed. On September 22, 2016, the Downtown Development Authority (DDA) convened a special meeting and voted to provide an additional financial contribution to the project to bridge the funding gap. The remaining contribution by the Town of Castle Rock will be included for Council consideration within the seventh budget amendment presented at the November 1, 2016 Town Council meeting on second and final reading.
History of Past Town Council, Boards & Commissions, or Other Discussions
The DDA voted unanimously at a special meeting on September 22, 2016 to support the project as designed and to provide additional funding for that purpose. The Parks and Recreation Commission voted unanimously to endorse the project as designed on September 21, 2016. Town Council voted 4-1 to direct staff to move forward with a contract for construction with Mortenson on October 18, 2016.
Discussion
The Castle Rock community has acknowledged the importance of Town strategic initiatives and the impact to quality of life as demonstrated through the 2015 Community Survey results. Economic development and supporting small town character are important components of these strategic initiatives. Downtown celebrations at Festival Park have been a significant contributor to small town character and quality of life for residents. As a result, Town Council, Castle Rock Economic Development (EDC), the DDA, the Downtown Alliance and the Downtown Merchants Association (DMA) have partnered in support of the expansion of Festival Park for the purpose of hosting community events and to attract downtown activities and retail business.
The redesign of Festival Park was developed through a public process involving community workshops, vision sessions and interactive presentations beginning in May of 2015. The design team selected for the project also worked with the DDA, DMA and individual property owners to explore design ideas and to address concerns.
The Downtown Master Plan anticipates significant growth in residential development and employment. In addition, the plan supports the attraction of individuals living and working in the downtown area by creating an environment where people want to work and live in a unique urban center. Great places like Festival Park are essential for the health and prosperity of such urban centers. A safe and clean urban park that serves a variety of people, Festival Park will boost the vitality of adjacent businesses and promote an active civic life as a public gathering place for work and respite.
The master plan for Festival Park was presented to Town Council on October 20, 2015. A contract for final design, construction documents and contract administration based upon the master plan were approved on November 17, 2015. Design Workshop, the project design consultant, included an opinion of probable costs based on the master plan drawings of $4,791,611.
As more detailed information became available through the development of construction documents, staff and the design team became concerned that the opinion of probable cost was too low, based upon the overall scope of amenities, stream stabilization and complexity of working within an extremely limited space. When construction documents reached 60% of completion, staff directed the design team to obtain a professional estimate and MW Golden Constructors was hired for this purpose. MW Golden completed their estimate in May of 2016 and valued Festival Park improvements at $7.8 million. This information was presented to the design team and communicated to the DDA in a prioritization discussion, which led the team to make changes to lower priority items such as the small but expensive playground features and to alter certain finishes that would not significantly impact the design in an attempt to better align the project with available funds. Plan changes were made but the project was not re-estimated due to cost and time constraints.
The project was distributed for competitive bidding on the Town’s electronic purchasing website on August 10, 2016. Seven general contractors attended a mandatory pre-bid meeting the week following the bid date. All contractors expressed concern with meeting the bid schedule so a one week extension was added. One final bid extension was also granted for the scheduled bid opening day after several contractors expressed concerns that they were having difficulty obtaining pricing from subcontractors.
Four bids were received September 13, 2016 and Mortenson provided the low responsive bid of $5,815,147. This bid price in addition to permit, materials testing, design contingency and other costs that are not part of a construction contract result in a total project cost of $6,391,052.
Festival Park Construction Project bid results:
|
Contractor |
Bid Price |
|
M.A. Mortenson Company |
$5,815,147 |
|
MW Golden Constructors |
$6,953,381 |
|
Rocky Mountain Excavating |
$7,814,234 |
|
White Construction |
$9,648,227 |
Additional project costs not included in the proposed contract with Mortenson:
|
Description |
Cost |
|
Materials Testing |
$30,000 |
|
Permits and System Development Fees (allowance) |
$100,000 |
|
Dry Utility Relocation (Century Link, Black Hills, Xfinity) (allowance) |
$53,000 |
|
Design Contingency |
$292,905 |
|
Town Hall Sidewalk Tie-in (allowance) |
$100,000 |
|
Total |
$575,905 |
The costs listed above include moving dry utilities during construction, permit and system development fees paid to the Development Services Enterprise and a materials testing contract that will be held by the Town to ensure quality of soil preparation, concrete and other materials. A sidewalk tie-in to the Town Hall parking lot is also included because retaining walls and railings will be required to make the connection. This sidewalk was not a part of the bid documents because the Town Hall addition drawings were not complete during the Festival Park bid process.
Finally, a combined owner’s / design contingency of approximately 5% is included. The American Institute of Architects’ best practices recommends holding design contingency in the amount of 5%-10% for the purposes of resolving unforeseen issues related to design during construction and to account for errors and omissions in the construction documents, such as quantities provided for estimating or for elements that may be required for project completion but are not included in the bid set. For instance, the project has been sent to various internal and federal agencies for permit review. If these agencies require a change to the plans it could increase the cost of development that is not included in the bid price, whether that be related to a floodplain regulation, building or code requirement. In addition to the design contingency, the construction contract includes a 5% construction contingency that would be available to address extreme weather, undiscovered geotechnical issues such as buried debris from past flooding events and the potential for flooding damage within the creek during construction.
Budget Impact
The project budget was established for the 2016 budget year based on funds available to complete the project and the design team’s opinion of probable cost. Project funding was derived from the following sources:
|
Funding Sources: |
|
|
Conservation Trust Fund |
$ 950,000 |
|
DDA TIF Fund debt capacity |
$2,500,000 |
|
General Fund DDA TIF - From $1.2 M |
$ 500,000 |
|
Parks and Recreation Capital Fund - end of 2016 |
$ 300,000 |
|
General Long Term Planning Fund |
$ 500,000 |
|
Stormwater contribution |
$ 250,000 |
|
Total Funding Sources |
$5,000,000 |
Of the original budget, $500,000 was set aside for design and contract administration, which leaves approximately $4.5 million for construction. The total bid price including costs that fall outside of the construction contract is $6,391,052, which will require an additional $1,891,052 in project funding to complete the project as designed and within the current schedule.
|
Total additional amount needed |
$1,891,052 |
|
|
|
|
Cash funding from the DDA TIF Fund* |
$495,526 |
|
Loan from General Fund to be paid with Line of Credit Funds by DDA TIF by 2018 |
$450,000 |
|
DDA TIF funds in General Fund from 2012-2014 collected TIF increment* |
$92,806 |
|
Contribution of funds from Unobligated General Fund balance |
$852,720 |
|
|
|
|
Total amount provided through scenario |
$1,891,052 |
*(appropriated in 2016)
A total of $6,391,052 will be available to complete the project upon approval of the seventh amendment to the 2016 Town of Castle Rock budget.
|
Project funding |
|
|
Festival Park Account #130-5275-452.75-19 |
$6,141,052 |
|
Storm Water Account #212-4475-444.78-20 |
$ 250,000 |
|
Funds Available |
$6,391,052 |
|
Project Expenditures |
|
|
M.A. Mortenson Company Contract |
$5,815,147 |
|
Design Contingency and Town Hall Connection |
$ 392,905 |
|
Materials Testing, Permitting and Utility Relocation |
$ 183,000 |
|
Total Expenditures |
$6,391,052 |
Staff Recommendation
Staff recommends a resolution approving the construction contract between the Town of Castle Rock and M.A. Mortenson Company for the Festival Park Construction Project.
Proposed Motion
“I move to approve a resolution approving the construction contract between the Town of Castle Rock and M.A. Mortenson Company for the Festival Park Construction Project.”
Attachments
Attachment A: Resolution
Exhibit 1: Contract
Attachment B: Bid Tabulation