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
Erin Evans, P.E., Project Manager
Title
Resolution Approving a Utilities Infrastructure Reimbursement Agreement for Sanitary Sewer Service Connection with Cornerstone Presbyterian Church of Castle Rock [2607 Fifth Street]
Body
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Executive Summary
Castle Rock Water (CRW) is seeking Town Council approval of a Resolution (Attachment A) approving a Reimbursement Agreement for Sanitary Sewer Service Connection (Exhibit 1 to Attachment A) with Cornerstone Presbyterian Church of Castle Rock (Cornerstone) to provide sanitary sewer infrastructure for service connection to the church. Among other private property owners, Cornerstone has approached the Town regarding a sanitary sewer service connection to Town systems. An initial reimbursement estimate of $217,223 was provided to Cornerstone for their portion of the utilities. Castle Rock Water has determined that $10,000 will be deducted from the reimbursement amount owed to the Town as a credit to Cornerstone for reusable groundwater put into the sewer system by the Church. Cornerstone will also dedicate this reusable supply to Castle Rock Water. As the project approaches construction, a Final Guaranteed Maximum Price (FGMP) will be established to identify the final construction cost. Cornerstone will then be responsible for reimbursing the Town for their portion of the project cost. Connection to sewer service by Cornerstone will be contingent upon Cornerstone paying the final reimbursement amount to the Town in full or in accordance with a payment plan agreed upon in writing by all parties, which will be executed upon approval of the Reimbursement Agreement.
With the Fifth Street Improvements Project (Roadway Project) planned to start Summer 2025, staff has identified a need to accelerate the completion of design and construction of the Fifth Street Sanitary Sewer Project ahead of the Roadway Project. This process also includes executing reimbursement agreements with the property owners along Fifth Street who will be serviced by the new utilities.
Town Council approved the Initial Guaranteed Maximum Price (IGMP) and construction contract with Global Underground in February 2025. An amendment will be executed to this agreement to establish the FGMP as the final contract amount.
Staff Recommendation
Staff recommends approval of the reimbursement agreement with Cornerstone Presbyterian Church.
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