To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Dan Sailer, Director of Public Works
Title
Resolution Approving a Construction Contract between the Town of Castle Rock and Hudick Excavating, Inc dba HEI Civil for the Four Corners Intersection Improvement Project [Founders Parkway, State Highway 86, Fifth Street, and Ridge Road]
Body
________________________________________________________________________________
Executive Summary
Staff is seeking Town Council approval of a Resolution approving a Construction Contract between the Town of Castle Rock and Hudick Excavating, Inc dba HEI Civil (HEI) for the Four Corners Intersection Improvement Project.
The Four Corners Intersection Improvement Project is part of the greater Town effort to provide reliable and efficient transportation. In order to continue providing adequate transportation services this project will provide needed upgrades for the intersection including additional turn and through lanes in all directions, signal upgrades, pedestrian access upgrades and signal control upgrades to help increase the efficiency and safety of the intersection.
The amount of the construction contract is $10,669,639.80 plus a 15% staff managed contingency in the amount of $1,600,360.20 for a total authorization of $12,270,000. The information presented herein includes: notification and outreach efforts; history of past Town Council, Boards & Commissions and other discussions; discussion of improvement scope; and budget impacts.
Notification and Outreach Efforts
The project team will perform the following community notification and outreach efforts related to the project:
• Project website creation, including regular updates
• Social media posts to inform community of any impacts to traffic during construction
• Provide project article(s) to be included in Castle Rock Water Mailer at project completion
• Mail postcards with construction information to residents within project area
The primary goal related to community outreach for this project is keeping the community informed throughout the construction process.
Prior public outreach was done in the summer of 2017 and the fall of 2018 pertaining to the future improvements at the site and gaining input on the improvements needed.
Discussion
The project limits extend in all four directions as represented by the aerial below.
Figure 1: Improvement Area
The project will include roadway, drainage, signage, striping, signal, pedestrian and landscaping improvements throughout the project site.
An exhibit of the new lanes and intersection layout is in (Attachment A).
Contractor Selection
Following Town’s Purchasing Policies and Procedures, a construction contract was drafted and an Invitation for Bid (IFB) was competitively advertised for pricing. While six contractors attended the mandatory pre-bid meeting, the Town only received one bid for the contract as indicated below:
|
TABLE 1: BID RESULTS |
|
Contractor |
Bid Amount |
|
HEI |
$10,669,639.80 |
Upon completion of due diligence of the submitted bid documents and qualifications verification, it is determined that the low bidder (HEI) is qualified to perform the contract. HEI is a large, local general contractor that performs roadway construction projects for other local agencies and the Colorado Department of Transportation (CDOT).
The cost for the construction contract was estimated by Town staff and the design engineer prior to bid (referred to as the Opinion of Probable Construction Cost - OPCC). The OPCC was $11,542,739. The submitted bid is 8% lower than the OPCC, thus demonstrating the submitted pricing is a good value for the Town.
It is requested that a 15% Town managed contingency be assigned to this construction contract as opposed to the standard 10% (as outlined within the Town’s purchasing policies and procedures). Factors driving the higher contingency request include:
• Multi-year construction contract that may be significantly impacted by a slow winter construction season
• Complex construction phasing to maintain traffic without detours throughout construction. While the contractor has included traffic control within their bid, it is probable that adjustments during construction will be necessary that will utilize some of this contingency
• Portions of the project fall within CDOT’s jurisdiction (Founders Parkway), resulting in strict working times that may hinder construction progress
The assignment of a 15% ($1.6M) contingency on this project will allow Town Staff to have greater flexibility to explore and implement unforeseen changes that may occur on the project that will result in greater value for the community in an expeditious matter.
Construction Schedule
The construction contract is a 210 working-day contract. It is anticipated that construction will commence in August 2023 and be complete in the summer of 2024. The construction schedule will be created to ensure the intersection remains traversable through the winter months and address work that can be done during colder temperatures avoid any unnecessary delays. Any and all weather delays will be managed by Town staff to ensure the project stays on schedule.
Budget Impact
The total recommended encumbrance for this construction contract is $12,270,000. This includes the base contract value $10,669,639.80 plus a 15% Town managed contingency $1,600,360.20.
Multiple agencies (including the Town) are contributing to the construction of the project as outlined below:
Funding from CDOT (DRCOG) $3,600,128
Funding from Douglas County $1,000,000
Town’s Funding Responsibility $7,669,872
$12,270,000
Outside agency funding is primarily acquired through reimbursement applications; thus, the Town is required to fully fund the construction contract up front.
This construction contract will be funded and expensed through appropriation account #135-3175-431.78-69 in the amount of $12,270,000. Staff have verified that the Transportation Capital Fund has sufficient balance to execute the contract as proposed.
Staff Recommendation
Staff recommends Town Council approve the resolution as introduced by title. The resolution will be proposed to the Public Works Commission at their July 10 meeting. Their recommendation will be shared during this item’s presentation to Council.
Proposed Motion
“I move that Town Council 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: Lane Configuration and Intersection Layout Exhibit
Resolution
Construction Contract