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, Engineering Manager
Matt Hayes, CIP Project Manager
Title
Resolution Approving a Construction Contract with RME Ltd., LLC d/b/a Elite Surface Infrastructure for the Bell Mountain Ranch Water Connection Project [Bell Mountain Ranch Subdivision]
Body
________________________________________________________________________________
Executive Summary
Castle Rock Water is seeking Town Council approval of a resolution approving a construction contract (Attachment A) with RME Ltd., LLC dba Elite Surface Infrastructure (ESI) for the Bell Mountain Ranch Water Connection Project. Castle Rock Water has recently entered into an agreement with the Consolidated Bell Mountain Ranch Metropolitan District for Water Services. This project will construct a new 12-inch water transmission main between the Town’s distribution system and Bell Mountain’s distribution system. ESI submitted the lowest responsive bid for a total construction cost of $2,364,200. Staff also requests approval for a 10% Town-managed contingency of $236,420, for a total project authorization of $2,600,620.
Notification and Outreach Efforts
The Consolidated Bell Mountain Ranch Metro District has been doing outreach to their customer base for approximately 18 months with a monthly newsletter sent to each customer providing details of the proposed change in service providers. CRW attended an online community meeting with the BMRMD board and BMR citizens on September 2, 2021. The board presented an overview of the proposed connection to the Town’s water system and terms of the agreement, and CRW participated by answering questions and providing more information about the proposed water service.
CR Water staff also have attended two Bell Mountain HOA meetings on February 3, 2022 and March 3, 2022.
CR Water has sent notice letters to residents that may be impacted by the construction of the pipeline. CR Water staff also have met with most of the residents that will be impacted by the project. CR Water will send out a notice of construction letter to the residents of Bell Mountain Ranch and host an open house for for the project. The project update is posted on the department’s webpage and periodic project updates will be sent to the residents.
History of Past Town Council, Boards & Commissions, or Other Discussions
CRW presented the concept of an extraterritorial agreement to the Water Resources Committee in November 2013. The Water Resources Committee was receptive to this idea and CRW continued to work with BMRMD on draft terms for a service agreement.
On October 6, 2020, CRW presented draft terms to the Water Resources Committee and received a favorable response.
On October 20, 2020, CRW presented an update and draft terms of an extraterritorial water service agreement to Town Council. Council directed staff to proceed with developing an extraterritorial water service agreement with BMR.
On October 28, 2020, CRW presented an update to the CRW Commission regarding the potential for an extraterritorial service agreement with BMR. Commission members were very supportive of moving forward on an agreement.
On July 28, 2021, the proposed water service agreement was presented to the CRW Commission and the CRW Commission voted unanimously in support of the extraterritorial agreement.
CRW has met with Douglas County officials several times over the past few years and, most recently, on July 22, 2021 to discuss this plan. Douglas County supports this water service agreement.
On November 2, 2021, a Resolution Approving an Intergovernmental Agreement Between the Town of Castle Rock and the Consolidated Bell Mountain Ranch Metropolitan District for Water Service and Improvements was presented to Town Council and was approved.
On May 25, 2022, the proposed project was presented to the CRW Commission. At the time of the meeting final bid costs had not been received so CRW Commission gave a general approval of the project as a whole. The final project packet will be shared with CRW Commission prior to the June 21, 2022 Town Council meeting.
Discussion
The Bell Mountain Waterline Project is located in the southern part of Crystal Valley Ranch (Attachment B). The pipeline will begin at the planned pump station that will be constructed as part of the Ridge at CVR Filing No. 1 (The Ridge) development. The pipeline will head to the south and connect to Bell Mountain at their water tank site. Construction of the new pipeline will begin later this summer.
BMR is a platted subdivision zoned - Planned Development Nonurban (PDNU) - in unincorporated Douglas County and is contiguous to the Town on the Town’s southern. The subdivision originally was platted for 305 single family homes and currently includes 305 occupied homes within its boundaries. An additional 16 home sites have been added bringing the total to 321. BMR operates its own public water system, but has struggled with water supply and water quality issues over the years, and more recently is under the gun to solve a compliance matter related to water treatment residuals. Representatives of the District have met with CRW staff numerous times over the past eight years and requested that the Town consider options for connecting BMR to the Town’s water system. They have considered other alternatives to solving water quality issues, including upgrading their existing water treatment system, but that will not solve their long term renewable water supply issue. The Ridge is a new development located at the southwest corner of the Crystal Valley Ranch subdivision. The majority of this development is located above the Town’s existing green pressure zone. The Ridge development is required to construct a new pump station and tank to serve their development. The Ridge and BMR have partnered on this project to build a water main and pump station that will benefit both entities. The new pump station will allow CR Water to move water to and from the BMR distribution system. The cost for the new water main and pump station will be split between BMR and The Ridge.
The Bell Mountain Ranch Water Connection Project will construct a new 12-inch water main between the Ridge at Crystal Valley Ranch and Bell Mountain Ranch’s tank site. The pipe will be located in a new easement across private properties. CR Water is working with Western States Land Services to acquire the required easements. The construction is anticipated to begin this summer and should take approximately 7 months to complete.
Budget Impact
The request for bids for the project was sent to seven qualified contractors. Contractors are pre-qualified for projects annually through a request for qualifications that is advertised on BidNet. Bids were received from four contractors, as summarized in the table below. The Engineer’s estimate was $2,100,000. The low bid was received from ESI and is considered a responsive bid.
|
Consultant |
Bid Amount |
|
ESI |
$2,364,200.00 |
|
Redline |
$2,483,278.00 |
|
Reynolds |
$2,637,206.00 |
|
Global |
$4,645,058.71 |
|
Garney |
No Bid |
|
C&L |
No Bid |
|
53 Corp. |
No Bid |
The cost for this project will be reimbursed by the Bell Mountain Ranch and The Ridge at Crystal Valley Ranch based on a 70/30 split. The project will be funded from the Bell Mountain Infrastructure & Improvements Account (Account No. 210-4275-442-79-06. ESI’s bid is $2,364,200. Staff requests an additional $236,420 (Town-managed 10% contingency) be authorized for a total project authorization of $2,600,620.
Project Account Amount Contingency Total
210-4275-442-79-06 $2,364,200 $236,420 $2,600,620
The current budget shortfall of $1,646,681 for the pipeline and tank projects will be allocated by third quarter budget amendment to cover this allocation. Additional funds also will be needed for pipeline easement acquisitions. Funds are available in the Water capital reserves to cover this shortfall.
Staff Recommendation
Staff recommends Town Council approval of the resolution approving the construction contract between the Town of Castle Rock and ESI for the construction for the Bell Mountain Ranch Water Connection in the amount of $2,364,200 plus a 10% Town-managed contingency of $236,420 for a total authorization of $2,600,620.
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
Attachment A: Resolution
Exhibit 1: Agreement
Attachment B: Project Map
Attachment C: Approval Letter from BMR
Attachment D: Email Approval from The Ridge at CVR