To: Members of the Public Works Commission
From: Aaron Monks, Engineering Manager
Title
A Resolution Approving a Construction & Maintenance Agreement with the Burlington Northern Santa Fe Railway for Construction Related to the Crystal Valley Interchange Project
Body
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Executive Summary
Staff is seeking a favorable recommendation from the Public Works Commission for Town Council to approve a Resolution approving a Construction & Maintenance (C&M) Agreement between the Town of Castle Rock and the Burlington Northern Santa Fe (BNSF). A new interchange will be constructed on I-25 with the Crystal Valley Interchange (CVI) project. As part of the new interchange configuration, a grade- separated crossing consisting of a new bridge over the BNSF will be constructed requiring a C&M Agreement that outlines Town and BNSF rights and responsibilities for the construction and maintenance of the bridge. The purpose of this item is to request Town Council approve the C&M Agreement with BNSF, and approve an encumbrance of $618,863 to cover remaining costs associated with this agreement. BNSF is requiring this contract be executed prior to construction clearance and contractor right- of-entry for Construction Package 2.
The following summarizes the primary responsibilities of each agency under this contract:
• Town Responsibilities
o Reimburse BNSF for staffing costs required for BNSF to provide project management, engineering reviews, construction oversight (Not to exceed $239,000).
o Reimburse BNSF for temporary & permanent easements required for construction and maintenance ($218,724).
o Reimburse BNSF for track work performed by BNSF forces related to the removal of existing at-grade crossings (Not to exceed $161,139), see map (Attachment A).
o Reimburse BNSF through construction contract for flagging during construction (Not to exceed $1,344,000 - This expenditure is included within the Package 2 construction contract).
• BNSF Responsibilities
o Perform engineering reviews, construction oversight, and project management to verify BNSF standards are complied with.
o Reimburse Town for removal of existing private at-grade crossings (Three (3) at $50,000/each for a total of $150,000).
o Reimburse Town for completion of bridge at new Crystal Valley Parkway grade-separated crossing ($770,243.70).
This C&M Agreement will require the encumbrance of $618,863 from the approved 2024 project budget. (Note: $1,344,000 flagging costs as outlined above will be requested to be encumbered through the Package 2 construction contract with Kraemer North America). The “Budget Section” of this memorandum provides a full summary overview of the Town’s obligations and needed encumbrances.
History of Past Town Council, Boards & Commissions, or Other Discussions
CVI has been presented and adopted by Town Council in various forms within several Transportation Master Plans (TMP) updates which includes the 2017 TMP. CVI is currently the Town’s number one priority Transportation Project. Town Council approved the design service agreement with Jacobs Engineering in June of 2021, and the Construction Manager/General Contractor (CM/GC) service agreement with Kraemer North America in March of 2022. A construction administration and inspection services service agreement with Alfred Benesch & Company was approved by Town Council at the February 6, 2023 meeting.
A construction contract was approved by Town Council on June 20, 2023 with Kraemer North America for CVI construction package 1.
Discussion
Prior to providing construction clearance for the new overpass structure and contractor right-of-entry, BNSF requires that a C&M Agreement that further outlines each party’s rights and responsibilities for construction and maintenance be entered into. The Town shall be responsible for all construction aspects of the work related to Crystal Valley Parkway, the frontage road and related improvements, including construction and construction administration. In performing the construction aspects of the work, the Town shall comply, and shall ensure that any consultant it hires to perform any part of the construction aspects of the Work, shall comply with: 1) all applicable Federal and State Law and Regulations; and, 2) all applicable BNSF standards (including, e.g., UPRR-BNSF Grade-Separation Guidelines, AREMA and approved plans). BNSF will perform a final project inspection prior to work acceptance. When all work has been completed in accordance with the plans and specifications, as certified through BNSF’s oversight and inspections, the BNSF will accept the project.
The final form of this agreement was received from BNSF on March 21, 2024. The Town must execute this C&M Agreement with BNSF before construction clearance can be obtained and contractor right-of-entry for the work on the interchange can be issued.
Additional clearances that are required: 1) Colorado Public Utilities Commission (PUC) Crossing Application Approval. The application for the elimination of the existing Territorial Road at-grade crossing and construction of the new Crystal Valley Parkway grade-separated crossings is being prepared. A field diagnostic meeting was already held. A 45-day public review period is required for the application. 2) Contractor Right-of-Entry (C&C-1 Agreement). This application is to be completed by the Town’s contractor for accessing the BNSF Right-of-Way for construction. It cannot be submitted until the C&M Agreement is executed. 3) ROW Clearance cannot be issued by CDOT until the temporary and permanent easements with the BNSF are executed.
Executing the BNSF C&M agreement and the easements provide the remaining documents needed to obtain the final clearances with CDOT to stay on scheduled with start of construction in late May for package 2 of CVI.
All construction elements associated with CVI are projected to be complete and fully opened by second quarter of 2027.
Budget Impact
The IGA requires the Town to encumber project funds in the amount of $618,863. This expense has been budgeted and will be expensed to account 135-3175-431.78-41. (Note: Upon the completion of the new grade-separated bridge over the BNSF and the removal of the three existing BNSF private at-grade crossings along the West Frontage Road, BNSF will reimburse the Town $920,243.70)
The agreement costs are summarized in Table 1
The below charts summarize the total project expenditures and revenue. The “Under contract” expenditures consist of Design Services initiated in 2021, acquisition of Right-of-Way, Construction Management Services and Intergovernmental Agreements with CDOT. The County’s revenue number includes services in kind (construction of Dawson Tails Blvd within the County).
Staff Recommendation
Staff recommends Public Works Commission recommend Town Council approve the resolution as introduced by title.
Proposed Motion
“I move that the Public Works Commission recommend that Town Council approve the attached Resolution as introduced by title.”
Alternative motions:
“I move to recommend that Town Council approve the attached Resolution as introduced by title, with the following conditions: (list conditions)”
“I move to continue this item to the Public Works Commission meeting on (date) to allow additional time to (list information needed)”
Attachments
Resolution
Agreement
Attachment A - Existing Railroad Crossings Map