To: Honorable Mayor and Members of Town Council
From: Mark Marlowe, P.E., Utilities Director
Matt Benak, P.E., Water Resources Manager
Title
Resolution Approving the Execution of the Intergovernmental Water Infrastructure Cost Sharing, Construction and Capacity Allocation Agreement between the Town of Castle Rock and Parker Water and Sanitation District
Body
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Executive Summary
The purpose of this memorandum is to request Town Council approval of the Intergovernmental Water Infrastructure Cost Sharing, Construction and Capacity Allocation Agreement for the Ridgegate pipeline - a key piece of the local WISE infrastructure. Parties to this agreement include the South Metro WISE Authority, Parker Water and Sanitation District (PWSD), the Town of Castle Rock, Dominion Water and Sanitation District, Pinery Water and Wastewater District and Stonegate Village Metropolitan District. Key terms of the agreement include:
• Parties will have license for capacity in pipeline (Castle Rock will have 19.9 percent of the capacity) and PWSD will construct, own, operate, repair, maintain, and replace (as necessary) the Ridgegate Pipeline.
• Parties can use their licensed capacity to move non-WISE project water that meets drinking water standards.
• Each party shall deposit 20% of its pro-rata share of construction costs within 30 days of execution of agreement with South Metro WISE Authority, who will administer the contract at no cost to the parties, and maintain a balance of a minimum of ten percent (10%) of the parties prorata share throughout construction.
• Costs included as part of this agreement include infrastructure construction costs for Layne Heavy Civil, construction services by CH2M, cultural resource monitoring, PWSD staff time spent on the design phase of the project, connection consulting with Black & Veatch, and PWSD staff time spent providing construction and contract management (0.5% of the Infrastructure Construction Costs).
• License is revocable is a party defaults.
• Wheeling costs are not a part of this agreement.
The proposed resolution is provided in Attachment A. A map showing the route of the Ridgegate pipeline system is included as Attachment B.
The total estimated construction phase cost for the Ridgegate pipeline system is $17,998,200. The Town’s portion of the construction costs will be $3,581,700. This is higher than originally estimated in the preliminary design report prepared by PWSD’s engineer and used for budgeting purposes in 2015. There are really three reasons the costs are higher than those which we budgeted. First, our pro-rata share of the costs has gone up because Inverness, Cottonwood and Douglas County were originally going to participate in this line and now they are going to participate. Construction bids came back higher than the original engineering estimate as noted. Finally, we did not included construction Management and cultural resource costs that are now better defined. Budget amounts for the Canyons line and the line from Outter Marker Road back to Ray Waterman are being updated based on the information from this bid. This is $370,300 less; however, than what was previously estimated by CH2M, the design engineer that prepared the final design. Once all parties have executed the agreement, construction will begin in May 2016 and all infrastructure will be functional by October 2017. the schedule for construction is
History of Past Town Council, Boards & Commissions, or Other Discussions
On June 17, 2014, Town Council approved the execution of the Western Pipeline Purchase Agreement by the South Metro WISE Authority.
On September 16, 2014, Town Council approved the execution of the Modifications Agreement, key terms of the Operations Agreement, key terms of the Joint Use Agreement, and associated costs for other key WISE Project components which included design of the Ridgegate Infrastructure.
On October 22, 2014, staff provided the Utilities Commission with an update of the Alternate Source of Supply Projects which included an update regarding the Ridgegate infrastructure.
On November 18, 2014, Town Council approved Resolution 2014-92: Execution of the Ridgegate Line and Rueter-Hess WISE Infrastructure Design Intergovernmental Agreement
On February 13, 2015, Town Council approved the First Amendment to the IGA regarding the Ridgegate Line and Rueter-Hess WISE Infrastructure Design Intergovernmental Agreement dated November 19, 2014, which reduced Castle Rock’s cost by $169,580 due to the design contract being substantially less than originally estimated.
On January 5, 2016, staff provided Town Council an update regarding the Alternate Source of Supply Projects which included an update regarding the progress on the Ridgegate infrastructure design.
Discussion
The purpose of this memorandum is to request Town Council approval of the Intergovernmental Water Infrastructure Cost Sharing, Construction and Capacity Allocation Agreement. Parties to this agreement include the South Metro WISE Authority, Parker Water and Sanitation District (PWSD), the Town of Castle Rock, Dominion Water and Sanitation District, Pinery Water and Wastewater District and Stonegate Village Metropolitan District. The proposed resolution is provided in Attachment A. A map showing the route of the Ridgegate pipeline system is included as Attachment B.
The WISE Western Pipeline Purchase Agreement closed on October 21, 2014 and the WISE Authority selected Western Summit Contractors, Inc. (WSCI) as the design-builder for the modifications to the Western Pipeline. These modifications include a 2 million gallon storage tank, a chloramination disinfection facility, a greensand filtration system in a new water treatment plant, a pump station by-pass and supervisory control and data acquisition system (SCADA) improvements. WSCI is on schedule with the modification work, being approximately 50% complete and is on track for substantial completion in November 2016.
To ensure the Town is able to receive WISE water deliveries in 2017, infrastructure from the Western Pipeline must be constructed. One portion of the necessary infrastructure is referred to as the Ridgegate Line. This pipeline system consists of approximately 4-1/2 miles of 42-inch welded steel potable water pipeline, four trenchless crossings of roadways, piping appurtenances (valves, fittings, etc), a flow control structure, an ammonia storage facility, finished water pumps, and minor improvements at the Rueter-Hess Water Purification Facility (SCADA, reorientation of surge tank).
Design of this pipeline system was completed by CH2M in February 2016, and bids for the construction were received by Parker Water and Sanitation District on March 17, 2016 from four pre-qualified construction firms. The engineer’s estimate for the construction work was approximately $16,300,000. The bid results summary is as follows:
1. Layne Heavy Civil: $14,297,876
2. Garney Construction: $15,508,783
3. Ames Construction: $16,335,320
4. WSCI: $19,083,096
PWSD plans to award the construction contract to Layne Heavy Civil. Additional costs that are included as part of the construction phase are cultural resource monitoring, design and construction project management by PWSD staff, and consulting engineer construction phase services, as well as a 10% construction contingency to help manage unforeseen changes. These cost details are summarized as Exhibit C within the attached Agreement. The total estimated construction phase cost for the Ridgegate pipeline system is $17,998,200. The Town’s portion of the construction costs will be $3,581,700. This is $370,300 less than what was previously estimated by CH2M.
Budget Impact
The Intergovernmental Water Infrastructure Cost Sharing, Construction and Capacity Allocation Agreement will impact the Town’s WISE Project budget. The 2016 WISE budget currently has funding for this project with an appropriate balance of $13.0 million. Funding will come from WISE account 211-4375-443.77-72, Project Code WR WLI.
Staff Recommendation
Staff recommends Town Council approve the Intergovernmental Water Infrastructure Cost Sharing, Construction and Capacity Allocation Agreement and total project cost of $3,581,700.
Proposed Motion
“I move to approve Resolution: Approving the Execution of the Intergovernmental Water Infrastructure Cost Sharing, Construction and Capacity Allocation Agreement.“
Attachments
Attachment A: Resolution
Exhibit 1: Agreement
Attachment B: Depiction of the Ridgegate Pipeline