To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
Dan Sailer, Public Works Director
From: Aaron Monks, Project Manager
Title
Resolution Approving a Construction Contract between the Town of Castle Rock and Kraemer North America for the Crystal Valley Interchange Package 1 Project
Body
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Executive Summary
Staff is seeking Town Council approval of a resolution (Attachment A) approving a construction contract between the Town of Castle Rock and Kraemer North America (Kraemer) for the Crystal Valley Interchange (CVI) Package 1 Project. The amount of the contract is $17,196,091. This is a Construction Agreed Price (CAP), which means that the actual price could come down based on actual quantities, but not exceed this amount. The limits of two project packages are shown in (Attachment B). Package 1 is highlighted in yellow. Due to certain Colorado Department of Transportation (CDOT) procedures associated with obtaining construction clearance for all items within the full interchange area, CDOT has approved this limited scope of work to proceed, while the remaining clearances are being developed, reviewed and approved for Package 2, highlighted in green. This is a discrete independent contract with a severable project scope that does not commit the Town or the contractor to further work on the project. Utilizing this method achieves the goal of breaking ground on elements of the project deemed to have independent utility immediately while remaining CDOT process and procedures are completed. This assists with opening the project in as timely a manner as possible and staff feels awarding this contract in this manner is in the best interests of the Town. Package 1 needs to proceed first in order to clear the space necessary for construction Package 2, which is planned to be recommended for Town Council approval this Fall.
The Crystal Valley Interchange will improve access to I-25 by connecting the east side frontage road and Crystal Valley Parkway over I-25 to Territorial Road on the west side including interstate access ramps for one of the fastest growing areas of Castle Rock. The interchange includes the construction of the following improvements: a bridge over I-25, North and South Bound on & off ramps, bridge over the BNSF Railroad, and relocation of the East and West side frontage roads. The project will also reduce existing and future congestion at the Plum Creek Parkway interchange by redistributing traffic to this new interchange, and improve safety by removing an at-grade railroad crossing on the west side of I-25.
The construction contract amount is $17,196,091. As part of the preconstruction phase, the Town has hired an Independent Cost Estimator (ICE) to provide us with an understanding of whether the contractor’s price for this work is within reason of existing market conditions. They provide pricing in the same manner as the contractor. The contractor’s price is within less than 1% of the ICE’s estimate. This is considered a responsible contract amount.
History of Past Town Council, Boards & Commissions, or Other Discussions
This project has been presented and adopted by Town Council in various forms within the last two Transportation Master Plans (TMP), which includes the 2017 TMP. The interchange was originally conceptualized in the late 1980’s when the Dawson Ridge subdivisions were approved. Initial FHWA documents were completed in 2004 with the approval of an Environmental Assessment (EA) and Finding of No Significant Impact (FONSI). The project stalled as a result of lack of development on the west side of I-25, and project funding prioritization changes.
In the spring of 2020, the Town applied for a BUILD grant for Design, ROW and Environmental Assessment funding. The Town received notice of award of the $5.4 million grant in late fall of 2020. The Intergovernmental Agreement (IGA) with CDOT was approved at the September 7, 2021 Town Council meeting. The first of this year the Town applied for the Call 4 DRCOG grant. The DRCOG steering committee gave support to approve the request in March, and in mid-May at the Board of Directors meeting, the Board voted to approved the forum’s recommendations. The final Board action is scheduled for July, but the Town has been given approval to start discussions with CDOT on the grant IGA.
The design services agreement with Jacobs Engineering Group was presented and approved at the June 15, 2021 Town Council meeting. The Construction Management/General Contractor (CM/GC) service agreement with Kraemer was presented and approved at the March 15, 2022 Town Council meeting. The ICE service agreement with Stanton Constructability Services was presented to the Town Manager in May of 2022.
Discussion
The use of CM/GC provides the best construction services delivery method for this complex project. By having the selected contractor be part of the design effort, the design is able to incorporate their construction knowledge into the design. It also increases their understanding of the design package, which assists with minimizing potential change orders during the construction phase. It also allows for a comprehensive understanding of possible construction phasing options to assist with moving into construction at the earliest possible date.
Staff has been working with CDOT and Kraemer on options to allow the Town to begin construction as soon as possible while continuing through CDOT processes for full construction clearance on both packages of the project. CDOT has authorized the Town to contract for Package 1 with the approval of specific clearances. The CDOT clearances for Package 1 include: Reevaluation of the overall project Environmental Assessment (EA), the Package 1 EA, and the CDOT maintenance IGA. The Town finalized the maintenance IGA with CDOT. The reevaluation EA and Package 1 EA are in the process of being approved by CDOT. The main delay on approval is waiting to have the US Army Corps of Engineers (USACE) determination on potentially impacted drainageways for Waters of the US (WOTUS). Town staff expects to receive approval on all Package 1 clearances by the time of the Town Council meeting or directly after. Kraemer will not be issued the Notice to Proceed until all Right-of-Way (ROW) for Package 1 has been secured. The Hyperion property is the only remaining parcel to be acquired. The Town has received Court order to set a hearing for Immediate Possession. If a hearing date has been set by the time of the Council meeting, staff will advise. Additionally, Kraemer will not be issued the Notice to Proceed until clearances from CDOT have been received for Package 1.
Schedule
The project is anticipated to be executed according to the following schedule:
• Design for Package 1 - May 2023
• Start of Construction for Package 1 - June 2023
• Start of Dawson Trails Blvd (Town and Douglas County portions) - August 2023
• Design for Package 2 - August 2023
• Start of Construction for Package 2 - October 2023
• Project Completion - December 2025
Because of the Town’s current process to utilize an ICE consultant to verify the contractor’s price estimate against market conditions, an open bid process was not deemed to be necessary or efficient in this case. This contract is with the Town’s current CM/GC contractor on this project, Kraemer. This procurement method is supported by staff and is in the best interest of the Town.
As staff continues to work through the remaining CDOT processes, future clearances for construction will occur that will allow staff to bring Package 2 to Town Council this fall. At that point, staff would have gone through the CMGC process with the contractor and the ICE consultant to lock in a Construction Agreed Price (CAP).
Budget Impact
The current total project estimate including existing preconstruction activities and construction is $124.5 Million. Douglas County is contributing $34 Million through a combination of completing a portion of the west frontage road relocation and the balance in funds. Staff will be presenting the Douglas County IGA to Town Council at the same meeting as this construction contract as a separate item. The Town is securing the remainder of these funds as shown in the chart below in red.
The breakout of the Town’s revenue is as shown in the following chart:
The funding for this contract is accounted for within the revenue shown in the previous chart. Expenditures for this contract will be taken from the Crystal Valley Interchange Fund Account (135-3175-431.78-41). Some internal fund loans will be necessary to cash flow the full project and allow for the forthcoming Package #2 to begin construction this year.
Staff Recommendation
Staff recommends the Town Council approve the resolution as introduced by title, with the stipulation Notice to Proceed will not be issued until ROW and Clearances have been received. The Public Works Commission recommended 5 to 0 to recommend approving the resolution as introduced by title.
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 changes ______”
“I move to continue this item to a future Town Council meeting date”
Attachments
Resolution
Attachment A: Project Limits
Attachment B: Package Map