To: Members of the Castle Rock Water Commission
From: Mark Marlowe, P.E., Director of Castle Rock Water
Roy Gallea, P.E., Engineering Manager
Matthew Hayes, P.E., Engineering Project Manager
Title
A Resolution Approving a Construction Contract between the Town of Castle Rock and Global Underground Corporation for the East Plum Creek Open Space Well Facility [Open space north of Plum Creek Water Purification Facility]
Town Council Agenda Date: April 4, 2023
Body
________________________________________________________________________________
Executive Summary
Castle Rock Water (CRW) is seeking Town Council approval of a resolution approving a construction contract (Attachment A) with Global Underground Corporation (Global) for the East Plum Creek Open Space Well Facility Project. This facility is for the new Aquifer Storage and Recovery (ASR) wells, CR-234, CR-235, and CR-236 that are being drilled near the Plum Creek Water Purification Facility (PCWPF) (Attachment B). This project consists of constructing a new metering and control facility for the newly drilled wells. Global submitted the lowest responsive bid for a total construction cost of $2,375,650.01. Staff also requests approval for a 10% Town-managed contingency of $237,565, for a total project authorization of $2,613,215.01.
Notification and Outreach Efforts
Notification letters were sent to the residents and businesses near the well facility site prior to commencing drilling activities. The project information will be posted on the Town’s Development Activity map as one of the Water Projects.
History of Past Town Council, Boards & Commissions, or Other Discussions
Resolution 2022-115, Approving a Construction Contract with Hydro Resources - Rocky Mountain Inc. for Wells CR-234, CR-235, and CR-236, was approved by Town Council on October 18, 2012; 6 for and 0 against.
The drilling contract with Hydro Resources was presented to Castle Rock Water Commission (CRWC) on September 28, 2022. The CRWC unanimously recommended Town Council approve the sole source contract with Hydro for drilling of the three wells for $4,483,540.
Discussion
Based on the Water Resources Supply and Demand Model, aging infrastructure, and the need for Aquifer Storage and Recovery (ASR) near PCWPF, it is necessary to keep pace with meeting our customers’ water demands. With the variability of WISE deliveries, renewable water variability, and lower demands in the winter months, a storage option is needed when these supplies exceed demand. One of the solutions is ASR, which is the ability to store water in the aquifer and recover the water through pumping when needed. The design of an ASR well is slightly modified to take into consideration the water that will be delivered into the aquifer through the well which will cause the water level in the well to increase. The project will include the drilling, completion, and pump testing of one Arapahoe Aquifer well, one Denver Aquifer well and one Dawson Aquifer well. 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).
This facility has been designed with the flexibility to produce water that can be sent to the PCWPF or the Meadows Water Treatment Plant (MWTP). This will give the operations team the ability to send water to the MWTP in the summer to maximize water production or to PCWPF for blending in the winter. Additionally, this facility is design for ASR to bank renewable water during the off peak season.
The request for bids for the project were sent to six qualified contractors. Bids were received by all six contractors, as summarized in the table below. The Engineer’s estimate was $2,700,000. The low bid was received by Global and is considered a responsive bid.
|
Consultant |
Bid Amount |
|
Global |
$2,375,650.01 |
|
T. Lowell |
$2,673,000.00 |
|
RME |
$2,885,759.00 |
|
Moltz |
$3,404,192.00 |
|
Velocity |
No Bid |
|
RN |
No Bid |
Assuming approval of this contract, the total project costs for these new wells are provided in the table below.
|
Consultant/ Contractor |
Duties |
Proposed Budget^ or Staff Estimated Budget* |
|
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^ |
|
Hydro Resources, Rocky Mountain Inc. |
Pumping equipment installation |
$2,500,000* |
|
Facility Design Consultant |
Design well facility |
$172,000^ |
|
Facility Contractor |
Construction of the facility and yard piping |
$3,000,000* |
|
Estimated Total Cost |
|
$10,366,243* |
* = Staff Estimated Budget
The facility is anticipated to be ready for production in December of 2023.
Budget Impact
The funding for the construction contract will come from CIP Account 210-4275-442.75-39 (New Wells), which has a balance of $0. Staff had decided not to carry forward 2022 funds as an estimate, opting to budget when actual project costs were established. Therefore, a budget amendment will need to be completed for this project. The Town will use these capital funds in reserve for the construction, which includes drilling, completion, and testing of this project. The Global’s bid is $2,375,650.01. Staff requests a Town-managed contingency in the amount of $237,565 for a total authorization of $2,613,215.01.
Project Amount Contingency Total Amount
210-4275-442.75-39 $2,375,650.01 $237,565 $2,613,215.01
New Wells
Staff Recommendation
Staff recommends Town Council approval of the resolution approving the construction contract between the Town of Castle Rock and Global for the construction for the East Plum Creek Open Space Well Facility Project in the amount of $2,375,650.01 plus a 10% Town-managed contingency of $237,565 for a total authorization of $2,613,215.01.
Proposed Motion
“I move to recommend to Town Council approval of Resolution as presented”
Attachments
Attachment A: Resolution (Not Attached)
Exhibit 1: Contract (Not Attached)
Attachment B: Location Map