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 Castle Rock Water
Erin Evans, P.E., Project Manager Castle Rock Water
Andrew Focht, Project Manager Castle Rock Public Works
Title
Resolution Approving the First Amendment to the Construction Contract with Global Underground Corporation, for the Fifth Street Utilities Project [Sanitary and Water Service on Fifth Street near Valley Drive]
Body
________________________________________________________________________________
Executive Summary
Castle Rock Water (CRW) is seeking Town Council approval of a resolution (Attachment A) approving a First Amendment to the construction contract (Exhibit 1) with Global Underground Corp. (Global) for the Fifth Street Water and Sewer Improvements Project (Utilities Project). The amount of the contract amendment is $1,749,820.25 and represents Work Package #1 (WP#1). This work package is intended to consist of all construction and material procurement for the water and sanitary sewer infrastructure included in the project. No other construction work packages are planned for this project at this time.
As previously presented to Town Council, the Utilities Project construction contract will be a Guaranteed Maximum Price Construction Management (GMPCM) arrangement. Construction will be awarded in one work package. GMPCM has been successfully utilized by the Town for design and construction of several projects including many projects at Plum Creek Water Purification Facility (PCWPF).
Global was selected as the Construction Manager and General contractor (CM/GC) through a sole source procurement process and has a proven track record in the industry as well as specifically on Castle Rock Water projects. Previous successful projects with CRW, knowledge of the Town’s utilities and geography, and exceptional customer service allow Global to stand out as a preferred contractor to undertake these construction services. Upon authorization to award WP#1, Global will begin ordering long lead materials. Global plans to begin site mobilization in Spring 2025 with overall construction completion of the project planned for Summer 2025. Completion of the Utilities Project prior to the start of the Fifth Street Improvements Project (Roadway Project) managed by Public Works is a priority for the Town.
The Initial Guaranteed Maximum Price (IGMP) for WP#1 based on the 30% design documents, including General Conditions (GCs) and other fees, developed by the Town and the design consultant in cooperation with Global, is $1,749,820.25. The Final Guaranteed Maximum Price (FGMP) will be established at the 90% design milestone. A second Amendment to this construction contract will be recommended at this milestone that will establish the FGMP as the final construction contract amount for the Utilities Project.
The Utilities Project will be funded in part by private property owners who have approached the Town regarding connection to water and wastewater infrastructure. The three primary interested property owners are St. Francis of Assisi Catholic Church, Cornerstone Presbyterian Church and the Degarmos at 2864 Fifth Street. CRW also anticipates neighbors to this area to request connection to the new infrastructure at a later date. An estimate of the reimbursement contributions to the project from each property owner is detailed in further sections of this report.
Staff recommends executing a First Amendment to the contract with Global for WP#1 to construct the Fifth Street Water and Sewer Improvements Project
Budget Impact
Current known and estimated project costs are shown below:
|
Stanley |
Design (including contingency) |
$ 245,000 |
|
Global Underground |
Pre-construction services |
$ 200,000 |
|
Global Underground |
Construction costs (IGMP)* |
$1,749.820.25 |
|
|
TOTAL |
$2,194,820.25 |
*Any early material procurement paid for during the preconstruction phase will be eliminated from the construction costs. The final contract amount will be established through a second amendment using the FGMP negotiated by the project team during the 90% design phase.
Cost for the additional utility upgrades is planned to be shared with the property owners who will be connecting to CRW services including St. Francis and Cornerstone Church. CRW is working with the three property owners to develop reimbursement agreements for their portion of the costs and work. If for some reason, an agreement cannot be reached at this time, CRW still recommends moving forward with this project so the infrastructure is in place for when these property owners and other property owners in the area need to connect. A priority of CRW is to capture reuse water that is currently being lost to septic systems within Town. Construction of the Utilities Project in the future after the Roadway Project would significantly increase the costs.
A preliminary breakdown of the responsibilities for the estimated construction costs and all accessory costs such as design and preconstruction services is as follows:
|
Property Owner |
Estimated Water Construction Cost |
Estimated Sanitary Construction Cost |
Estimated Accessory Cost |
Total Reimbursement to CRW |
|
St. Francis of Assisi |
$0 |
$592,640 |
$151,300 |
$743,940 |
|
Cornerstone Church |
$304,997 |
$170,658 |
$134,500 |
$610,155 |
|
Degarmo |
$10,000 |
$484,889 |
$124,600 |
$97,195 (from Public Works) |
|
Totals |
$314,997 |
$1,248,187 |
$410,400 |
|
|
Total Reimbursement to CRW |
$1,451,290 |
The Work Package #1 contract will be established with a budget of $1,749,820.25 and will be funded from the accounts shown below.
|
Account Name |
Account Number |
Amount Requested |
Account Balance |
|
CIP/Fifth Street Construction |
210-4275-442.79-39 Water Fund |
$1,119,884.96 |
$0** |
|
CIP/Fifth Street Construction |
213-4575-445.79-34 Wastewater Fund |
$629,935.29 |
$0** |
** A first quarter budget amendment will be completed for these accounts.
Staff Recommendation
Staff recommends Town Council approval of the Resolution as presented.
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
Staff Report
Attachment A: Resolution
Exhibit 1: First Amendment to the Construction Agreement
Attachment B: Fifth Street Utilities Map