To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
Daniel 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, LLC, for the Crystal Valley Interchange Package 2 Construction Project
Body
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Executive Summary
Staff is seeking Town Council approval of a resolution approving a construction contract between the Town of Castle Rock and Kraemer North America (Kraemer) for the Crystal Valley Interchange (CVI) Package 2 Project. The amount of the contract is $74,696,583 plus a 10% Town managed contingency for a total encumbrance of $78,431,413. This is a Construction Agreed Price (CAP), which means that the actual price could come down based on actual quantities, but will not exceed this amount. The limits of construction for Package 2 is shown in (Attachment A). Package 2 is highlighted in green. The project was split into two packages. Package 1 highlighted in yellow, is currently under contract with Kraemer, and construction started on February 29, 2024. The only remaining construction contract associated with the interchange this is under Town oversight is the Dawson Trails Boulevard segment within the town’s limits. The remaining segment of Dawson Trails Boulevard south of the town limits is being managed by Douglas County. The construction contract award for the Town’s segment will be scheduled for a future Council meeting.
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.
As part of the preconstruction phase, the Town 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 less than 1.3% of the ICE’s estimate. This is considered a responsible contract amount as CDOT requires that the difference be less than 5%.
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. In the first quarter of 2023, the Town applied for a DRCOG grant. The Town received notice of award of the
$8.5 million grant in July of 2023, and the IGA with CDOT for the grant was executed in December of 2023
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.
The construction contract for Package 1 was presented and approved by Town Council on June 20, 2023. The construction was delayed due to change in direction from CDOT and FHWA on the environmental evaluation process and approval. All clearances have been obtained and this package is currently under construction.
The proposed construction contract for Package 2 was presented to the Public Works Commission on May 6, 2024 to receive formal recommendation for Town Council approval. The Public Work Commission voted unanimously to recommend Town
Council approval.
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 was able to incorporate their construction knowledge. 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.
CDOT has authorized the Town to commence construction of Package 1 in February
with the approval of specific clearances. The CDOT clearances for Package 1 include:
Reevaluation of the overall project Environmental Assessment (EA), and the CDOT maintenance IGA for package 1.
Schedule
The project is anticipated to be executed according to the following schedule:
• Package 1 construction started - February 2024
• Start of Construction for Package 2 - May/June 2024
• Start of Dawson Trails Blvd (Town and Douglas County portions) - Summer 2024
• Project Completion -
o Substantial Completion (opened to the public for use) - Second quarter 2027
o Project Acceptance - Third quarter 2027
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. CDOT has given approval to the Town to proceed to construction with Package 2.
Budget Impact
This construction contract requires the Town to encumber project funds in the amount of $78,431,413.
The below charts summarize the total project expenditures and revenue. The “Under contract” expenditures consist of Design Services initiated in 2021, acquisition of Right- of-Way, Construction Management Services and Intergovernmental Agreements with CDOT for oversight on construction and grants. The County’s revenue number includes services in kind (construction of Dawson Tails Blvd within the County).
Staff Recommendation
Staff recommends the Town Council approve the resolution as introduced by title. The Public Works Commission reviews this item at their May 6th meeting. Their recommendation will be provided at the Town Council meeting.
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
Contract
Attachment A: Project Limits Map