To: Members of the Castle Rock Water Commission
From: Mark Marlowe, P.E., Director of Castle Rock Water
Matt Benak, P.E., Water Resources manager
Lauren Moore, Water Resources project Manager
Title
Resolution Approving a Pumping Equipment and Installation Construction Contract with Hydro Resources - Rocky Mountain Inc. for Wells CR-234, CR-235 & CR-236 [Open space north of Plum Creek Water Purification Facility] DRAFT
Town Council Agenda Date: July 17, 2023
Body
________________________________________________________________________________
Executive Summary
The purpose of this memorandum is to request Town Council approval of a Resolution (see Attachment A) approving a construction contract with Hydro Resources - Rocky Mountain, Inc. (Hydro). The agreement covers the installation of pumping equipment for Wells CR-234, CR-235, and CR-236 located in the East Plum Creek Open Space (EPCOS) north of the Plum Creek Water Purification Facility (PCWPF). Attachment B is a map of the well locations. The wells will add new water capacity from the Denver Basin aquifers. The contract is for the installation of pumping equipment with the capability of pumping groundwater from three aquifers, one Arapahoe Aquifer well, one Denver Aquifer well, and one Dawson Aquifer well that will supply raw water to PCWPF or the Meadows Water Treatment Plant. The Meadows Water Treatment Plant is currently water short so this will provide a much-needed raw water supply of an estimated 0.90 million gallons per day (MGD). Additionally, the Arapahoe and Denver Wells are designed to allow for Aquifer Storage and Recovery (ASR) capabilities in the future. These wells are being funded by growth-related fees as they are needed to keep pace with growth. Castle Rock Water’s (CRW) goal is to have these three wells available for the 2024 irrigation season although equipment acquisition could present a challenge to his goal with key equipment (specifically, variable frequency drives) currently 52 weeks out.
Because there were limited well drilling companies available in the area and a large amount of demand for their services, Castle Rock Water sole sourced the drilling of CR-234, CR-235 and CR-236 to Hydro in 2022. The drilling, completion and testing with Hydro of the three wells was approved under Resolution 2022-115. Hydro completed the drilling on budget and on schedule. Since Hydro drilled the wells, Castle Rock Water recommends sole sourcing the equipping of the wells to Hydro as it would not make sense to try and bring a new contractor onto the site at this point in the project.
Staff recommends approving a construction contract based on the qualified bid from Hydro Resources - Rocky Mountain Inc. in the amount of $XXXXXX. In addition, Castle Rock Water staff request a 10% Town-managed contingency in the amount of $XXXXXX for a total authorization of $XXXXXX. The Construction Contract is included as Exhibit 1 to the Resolution. The total estimated cost of the project including this proposed contract is $XXXXX.
Notification and Outreach Efforts
The project information is posted on the Town’s development Activity map as one of the Water Projects. This project is located on Town Open Space property in a remote area away from most homes and businesses. Staff will follow the communication policy for the necessary notifications of construction activities.
History of Past Town Council, Boards & Commissions, or Other Discussions
On September 28, 2022, Castle Rock Water Commission recommended Town Council approve the Construction Contract with Hydro Resources - Rocky Mountain, Inc. for the Drilling of the East Plum Creek Open Space (EPC OS).
On October 18, 2022, Town Council approved Reso 2022-115 for the Construction Contract with Hydro Resources - Rocky Mountain, Inc. for the Drilling of the East Plum Creek Open Space (EPC OS).
On March 22, 2023, Castle Rock Water Commission recommended Town Council approve the Construction Contract with Global Underground Corporation for the East Plum Creek Open Space Well Facility.
On April 4, 2023, Town Council approved Reso 2023-042 for the Construction Contract with Global Underground Corporation for the East Plum Creek Open Space Well Facility.
Discussion
Given the high population growth trends over the past several years and aging well infrastructure that limits groundwater production, it is necessary to keep pace with meeting our customers’ water demands through the drilling of new wells. CRW recently completed the drilling, completion, and pump testing of one Arapahoe Aquifer well, one Denver Aquifer well and one Dawson Aquifer well at this location. Staff anticipates that the Arapahoe Aquifer well will produce 250 to 300 gallons per minute (gpm), the Denver Aquifer well will produce 200 to 250 gpm, and the Dawson Aquifer well will produce 50 to 80 gpm or approximately a total of 0.72 to 0.90 million gallons per day (mgd).
Upon direction from CRW leadership that we need to continue to move forward on this project, staff met with Hydro to determine schedule availability and timing. Based upon this meeting, previous bidding information, and the potential to have the ability to temporarily equip the wells during irrigation season, staff determined that sole sourcing (see Attachment C) the pumping equipment installation construction contract would be in the Town’s best interest.
The pumping equipment design includes a variable frequency drive (VFD) that increases power efficiencies as it does not need a step-up transformer, input filters, and output filters.
Hydro’s bid addressed the full scope of work, and staff believes the proposal amount to be a good value to the Town based on previous similar scopes of work. In addition, staff completed a detailed line-item comparison of the items included in this scope of work with the previous competitive bid of Wells CR-228, CR-229, and CR-230. These wells are of similar depths and were competed by Hydro in 2019.
The construction, which includes the drilling, completion, and testing for the wells was completed in June of this year. Currently, VFD’s have a 52-week lead time, so installation of the new pumping equipment and controls is anticipated for June 2024. Facility construction is currently underway with Global Underground Corp and expected to be completed by the end of 2023. Staff anticipates completion of the project by the 2024 irrigation season.
Additional background on the total estimated cost of the project is provided in the table below.
|
Consultant/ Contractor |
Duties |
Cost |
Original Budget Estimates |
|
Leonard Rice Engineers, Inc. |
design of wells and oversight of drilling |
$210,703 |
|
|
Hydro Resources, Rocky Mountain Inc. |
drilling, completion and testing of wells |
$4,483,540 |
|
|
Dewberry Engineer, Inc. |
Design well facility |
$105,630 |
|
|
Global Underground Corp. |
Construction of the facility and yard piping |
$2,375,650 |
|
|
Hydro Resources, Rocky Mountain Inc. |
Pumping equipment and installation |
$1,700,000 |
|
|
Total Project Cost |
|
$8,875,523 |
|
Budget Impact
The funding for the construction contract will be from CIP Account 210-4275-442.75-39 (New Wells), which has a current balance of ($3,995,743.73). Staff will complete a budget transfer into CIP Account 210-4275-442.75-39 in the amount of $XXXXXX from CIP Account ??? which has a budget of $???. The Town will use these funds for the pumping equipment and installation of this project.
|
Project |
Amount |
Contingency |
Total Amount |
|
210-4275-442.75-39 (New Wells) |
$XXXXXX |
$XXXXXX |
$XXXXXX |
Staff Recommendation
Staff recommends Council approval of the construction contract between the Town of Castle Rock and Hydro Resources - Rocky Mountain, Inc. for the pumping equipment and installation for Wells CR-234, CR-235, and CR-236 in the amount of $XXXXXX plus a 10% Town managed contingency of $XXXXXXX for a total authorization of $XXXXXX.
Proposed Motion
“I move to recommend to Town Council approval the Resolution as presented”
Attachments
Attachment A: Resolution (Not Attached)
Exhibit 1: Construction Contract (Not Attached)
Attachment B: Location Map
Attachment C: Sole Source (Not Attached)