To: Honorable Mayor and Members of Town Council
From: Mark Marlowe, P. E., Director of Castle Rock Water
Tim Friday, P. E., Assistant Director
Title
Resolution Authorizing the Town of Castle Rock as a member of the Plum Creek Water Reclamation Authority to Fund the Design of the Plum Creek Water Reclamation Plant Expansion [4255 North U.S. Highway 85]
Body
________________________________________________________________________________
Executive Summary
Castle Rock Water has been planning for an expansion of the Plum Creek Water Reclamation Authority (PCWRA) wastewater treatment capacity since before 2015. The exact timing of the need for the expansion was reviewed in the 2015 capacity evaluation, which indicated the expansion would not be needed until approximately the 2020s. In 2017, a capacity update reviewed current flows and flow projections, and indicated the expansion would be needed sooner than contemplated.
The Town of Castle Rock, along with Castle Pines Metro District (CPMD) and Castle Pines North (CPN) make up the board membership in the PCWRA. Separate agreements are being developed by PCWRA with each member, which will specify the costs of the expansion to each member. Castle Rock is the member with most if not all of the need for the expansion, and will therefore be funding most if not all of the costs of this expansion. Once the cost-sharing agreements are completed, they will be brought to Council for consideration.
The purpose of this Resolution (Attachment A) is to seek authorization from Council to support and fund the design of PCWRA treatment plant expansion Services Agreement between Plum Creek Water Reclamation Authority (PCWRA) and Burns and McDonnell in the amount of $1,317,414, plus an approximate six percent authority-managed contingency in the amount of $77,000, for a total project authorization of $1,394,414. In addition, the Resolution will give the Director of Castle Rock Water authorization to sign on behalf of the Town. The Town will provide the funding for design of the expansion in proportion to the Town’s share in the overall cost of the expansion.
An alternative project delivery method, Guaranteed Maximum Price Construction Management (GMPCM), is being utilized for design and construction of the proposed three million gallon per day (MGD) expansion of the current 6.44 MGD plant capacity. The GMPCM method will allow an accelerated construction schedule beginning in 2018, while design is still underway. The additional treatment capacity will be available in 2020 to handle the Town’s projected wastewater flows. Burns and McDonnell will begin design in September 2017 and complete design in October 2018.
History of Past Town Council, Boards & Commissions, or Other Discussions
On June 20, 2017, Town Council was briefed on the PCWRA 2017 Capacity Study Update and the need for expansion of the treatment plant.
On August 23, 2017, the Castle Rock Water Commission voted unanimously to recommend Town Council support of this project as presented.
Discussion
An alternative project delivery method, Guaranteed Maximum Price Construction Management (GMPCM), is being utilized for design and construction of the proposed expansion. This method will help ensure the project meets the proposed accelerated schedule for the expansion. As part of this project delivery method, PCWRA will contract with an engineering design firm to begin design of the plant expansion. After preliminary design has begun, PCWRA will contract with a construction management firm to assist with value engineering, cost estimating, and constructability reviews during the remainder of the design process. In addition to an accelerated construction schedule, the team-oriented GMPCM process should enable more constructible design documents and control of anticipated construction costs earlier in the design process. The current estimated cost for the expansion is in excess of $47 million (including thirty percent contingency). Staff is hopeful that these costs can be reduced through careful design and contracting, utilizing GMPCM project delivery.
An owner’s representative consultant, Project One Integrated Services, LLC (Project One) has been retained by the Town to assist with designer and contractor selection and contracting for the project. A request for proposals for design of the plant expansion was issued by Project One on behalf of PCWRA to five qualified engineering firms on July 17, 2017. Proposals from four of these firms were received on August 7, 2017. Proposed fees for design services ranged from $1,239,414 to $4,014,514. An owner’s selection panel of five staff members from Castle Rock Water and PCWRA reviewed and collaboratively ranked the proposals received for the project. Proposals were ranked by the owner’s selection panel prior to review of any associated design fees for the project. The highest ranked proposal corresponded with the highest proposed fees, which were far in excess of the amount budgeted for the project. The owner’s selection panel elected to interview the second highest ranked proposal, which was received from Burns and McDonnell and corresponded with the lowest proposed design fees for the project. During the interview, the proposed project team from Burns and McDonnell demonstrated good understanding of the project’s objectives, ideas for mitigating potential project risks, and recent successful experience working with similar and local GMPCM projects. The proposed design team from Burns and McDonnell expressed commitment to completing the project within the proposed estimated levels of effort.
In 2012 Burns and McDonnell successfully assisted the Town with design and construction of the Plum Creek Water Purification Facility utilizing the GMPCM delivery method. A pipeline team from Burns and McDonnell also recently designed the five-mile WISE pipeline and is currently assisting the Town with construction phase engineering services.
Burns and McDonnell will begin design in September 2017. Permitting processes with Colorado Department of Public Health and Environment (CDPHE) will be initiated shortly thereafter, as these approvals will be crucial to maintaining the project’s accelerated schedule. Thirty percent design plans will be developed by December 2017 and construction management contractor selection will be initiated at that time. With Town Council approval, PCWRA will contract with the selected contractor to assist with pre-construction services, as well as manage construction of the project for an Initial Guaranteed Maximum Price (IGMP). As Burns and McDonnell completes plant expansion design throughout 2018, GMPCM contracts for one or more work packages will be executed by PCWRA with Town Council approval. Early construction activities are anticipated to commence by fall of 2018. Final completion of the treatment plant expansion is anticipated by summer of 2020.
Budget Impact
Funding for design of the project was included in the 2017 budget as follows:
|
Project |
Account Number |
2017 Budget |
Spent/ Encumbered To-Date |
This Contract |
|
PCWRA Capacity Expansion |
213-4575-445.78-79 |
$1,500,000 |
$105,480 |
$1,317,414 |
Staff Recommendation
Castle Rock Water recommends contracting design with Burns and McDonnell because their proposed team for the project appears well-qualified, they submitted and presented an excellent project proposal, and their proposed services and fees are reasonable. Staff believes Burns and McDonnell’s proposal represents the best overall value for our ratepayers and recommends approval of the Resolution approving the Professional Services Agreement between PCWRA and Burns and McDonnell (Attachment A).
Contract execution will occur at the special session PCWRA Board Meeting to be held on September 6, 2017, and notice to proceed will be given promptly thereafter. Design is anticipated to be completed in October 2018.
Proposed Motion
“I move to approve the Resolution as introduced by title.”
Attachments
Attachment A: Resolution