To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
Daniel Sailer, Director of Public Works
From: Andrew Focht, Project Manager
Title
Resolution Waiving Formal Written Bidding Requirements on the Basis of Sole Source and Approving an Agreement for Service with CORE Electric Cooperative for the Installation of Street Lighting Infrastructure for the Crowfoot Valley Road Widening Project
Body
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Executive Summary
Staff is seeking Town Council approval of a Resolution approving an Agreement for Service between the Town of Castle Rock and CORE Electric Cooperative (“CORE”) for installation of street lighting infrastructure associated with the Crowfoot Valley Road Widening Project.
The Crowfoot Valley Road Widening Project includes roadway widening, intersection improvements, and multimodal enhancements along the corridor. This agreement with CORE is required to construct new street lighting infrastructure and perform associated electrical work. Under existing agreements, CORE owns, operates, and maintains street lighting infrastructure within the Town, making their involvement necessary for this work. When the street lights are installed, the Town will be responsible for paying CORE a flat rate per light for operations and maintenance.
The proposed Agreement amount is $594,131, and staff is requesting authorization of a 10% Town-managed contingency in the amount of $59,413, for a total authorization of $653,544. This is higher than the budgeted amount for this work, but savings in other project areas will cover the recommended encumbrance amount. The information presented herein includes the construction scope, anticipated schedule coordination, and budget impacts.
Discussion
As part of the Crowfoot Valley Road Widening Project, new street lighting is required to meet Town standards and provide safe nighttime visibility along the improved corridor. The work to be completed by CORE includes installation of approximately 33 new street lights along Crowfoot Valley Road, along with associated underground electrical infrastructure.
Under the Town’s existing agreements with CORE, CORE owns, operates, and maintains street lighting infrastructure within the Town with the Town paying a flat fee per light for monthly operations and maintenance costs. As a result, CORE is the only entity authorized to install and maintain permanent street lighting facilities that will ultimately be integrated into their electrical system. In addition, CORE is the sole provider of electric distribution services within the project area.
For these reasons, this work qualifies as a sole source procurement, as no other contractor or utility provider can perform this work or assume long-term ownership and maintenance of the installed infrastructure. Accordingly, formal bidding requirements are not applicable.
The CORE scope of work generally includes:
• Installation of 33 new streetlights
• Installation of underground conduit, wiring, and related electrical components
• Coordination with roadway construction to ensure proper timing of installation
• Integration of new lighting with CORE’s existing electrical distribution system
Project Schedule
Construction of the Crowfoot Valley Road Widening Project is currently underway. The CORE street lighting work will be coordinated with the roadway contractor and completed concurrently with the roadway widening so that lighting is in place at project completion.
Budget Impact
The total authorization requested for the CORE Agreement for Service is $653,544, which includes the base agreement amount of $594,131 and a 10% Town-managed contingency of $59,413.
Currently, $575,000 is available within the project budget for this work. To fully fund the requested authorization, staff proposes to reallocate $79,000 from the Town-managed contingency associated with the Crowfoot Valley Road Widening construction contract with FNF Construction.
This proposed approach allows the CORE Agreement to be fully funded within the existing project budget and eliminates the need for any additional appropriations or increases to the overall Crowfoot Valley Road Widening Project budget.
The FNF construction contract currently carries an unused Town-managed contingency balance of approximately $545,000 (approximately 8% of the contract amount). Reducing this contingency by $79,000 (a reduction of 1% of remaining contingency) is not anticipated to impact the project’s ability to be completed within the available budget. The construction contract is approximately 60% complete, and the highest-risk elements of work have already been completed, including utility relocations, installation of new underground utilities, and major early-phase construction activities. As construction progresses into later phases, the likelihood of encountering significant unforeseen conditions is substantially reduced.
The proposed reallocation will be accomplished through an administrative adjustment to the existing purchase order contingency, returning funds to the project account for use on this work.
Staff Recommendation
Staff recommends Town Council approve the Resolution waiving the formal bidding requirement on the basis of sole source and approve the Agreement for Service with CORE Electric Cooperative for the Crowfoot Valley Road Widening Project. This item is scheduled for review with the Public Works Commission on April 6.
Proposed Motion
“I move that Town Council approve the Resolution as introduced by title.”
Alternative Motions:
“I move that Town Council approve the Resolution as introduced by title with the following adjustments (list adjustments) ….”
“I move that Town Council consider this resolution at a later (specify date) Town Council meeting.”
Attachments
Attachment A: Resolution
Attachment B: Agreement for Service