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 the Second Amendment to the Progressive Design-Build Agreement with S.J. Louis Construction, Inc. for the Phase 2 Construction Services for the Sedalia Lift Station and Force Main to Plum Creek Water Reclamation Authority Project
Body
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Executive Summary
Castle Rock Water (CRW) seeks Town Council approval of a Resolution (Attachment A) approving a Second Amendment (Exhibit 1) to the Sedalia Lift Station and Force Main to Plum Creek Water Reclamation Authority (PCWRA) Project Progressive Design-Build (PDB) agreement. The proposal is for a second amendment in the amount of $16,766,642.73 which reflects a total GMP agreement with S.J. Louis Construction, Inc. of $18,397,025.20 less the previously authorized preconstruction and final design services of $1,630,382.47. The total estimated project budget including easement acquisition and other costs is now $19,784,296.46. CRW is requesting Council increase CRW’s contribution to the project from $4,800,000 to $5,784,296, an increase of $984,296. This additional cost will be recovered under the same terms as the $4,800,000 under an amendment to the agreement with Douglas County.
The Sedalia Lift Station and Force Main project is to design and build the main wastewater conveyance line for the town of Sedalia and the surrounding area as shown in Attachment B. However, sewer trunk lines and connections to residents and businesses will need to be constructed though system development fees to take full advantage of this project.
Phase 2 design services of the project are underway and will be completed to 100% design. As prescribed by the PDB method, the project has completed 60% design and a Guaranteed Maximum Price (GMP) or a lump sum price has been negotiated with the Design-Builder, S.J. Louis Construction, Inc. CRW has the option to accept this price for the completion of the project or terminate the contract. Staff recommends to Town Council to accept the GMP and enter into a Phase 2 construction services agreement. If approved by Town Council, the project will proceed to completion by first quarter 2027.
Budget Impact
The current project budget estimate is $19,784,296.46 million. A total of $14,000,000 of funding for this project is being paid for by Federal American Rescue Plan Act funds granted to Douglas County. CRW plans to collect the additional $984,296 needed for the project through system development fees along with the $4.8M that was previously approved. The project is being administered by CRW and a 1% Project Management fee of up to $140,000 is being included for the management of the project.
The current estimated projected costs are:
As mentioned in the discussion above CRW determined other funding sources that would account for the costs associated with the Douglas County trail easement, Sedalia Wastewater Strategic Plan, and will pay for the CRW project management fee through system development fees collected on the project. A summary of those costs and their funding source are below:
This second amendment with SJ Louis will be for the Phase 2 construction services at a cost of $16,766,642.73 as outlined in the project summary below. Please note that the design-builder also includes a contingency of $385,711.33 which is in addition to any Town managed contingencies.
As per the IGA with Douglas County, expenses to be reimbursed to CRW from the escrow account will be processed through GL Account # 213-4575-445.79-38 - 85 Regional Wastewater, project number 250024.
Staff Recommendation
Staff and Castle Rock Water Commission recommend that Town Council approve the Second Amendment to the Progressive Design-Build Agreement between the Town of Castle Rock and S.J. Louis Construction, Inc. Douglas County, Special Projects also recommends approval of this amendment based on their review of the proposal.
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: LS and FM Location Map