To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
Dan Sailer, Public Works Director
From: Aaron Monks, Project Manager
Title
Resolution Approving an Intergovernmental Agreement Between the Town of Castle Rock and Dawson Trails Metropolitan District No. 1 Regarding Management of the Dawson Trails Boulevard Project [West Frontage Road]
Body
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Executive Summary
Staff is seeking Town Council approval of a Resolution approving a Management Agreement between the Town of Castle Rock and the Dawson Trails Metropolitan District No. 1 to manage the construction of Dawson Trails Blvd (relocated West Frontage Road).
The Town is currently working to construct the Crystal Valley Interchange (CVI), the southernmost interchange within the Town. As part of the interchange project, the existing frontage road that traverses north-south along the west side of I - 25 will be abandoned from Yucca Hills Road south to Tomah Road. This is a result of CVI’s south bound I-25 on/off ramps requiring to be constructed in the current location of the Frontage Road. Dawson Trails Blvd will serve as the new north-south connection in this area. The attached map (Attachment A) provides an overview. As part of CVI, the Town is obligated to construct a portion of Dawson Trails Blvd. south to the Town limits and tie into a Dawson Trails Blvd. section Douglas County is obligated to construct.
The Dawson Trails development will start constructing improvements along the future corridor of Dawson Trails Blvd. during the timeframe that Dawson Trails Blvd. construction will need to begin for CVI. With this construction occurring simultaneously it was recognized that efficiencies can be gained by having a coordinated effort to manage the adjacent projects and the Town project. The cost of this management agreement is 3.5% of the initial construction contract. The estimated construction cost is $13,000,000, so the management fee is estimated to be $455,000. Staff has allocated $1,000,000 within the project budget for construction management.
Town staff will have oversight on the bidding process, which includes attending a pre- bid meeting and answering questions. Town staff will also have oversight in the selection of the contractor. Town staff will be able to provide feedback and make recommendation on the contractors that submitted bids. If Town staff is not agreeable with the price or contractor the project will be rebid with possible revisions.
Construction of Dawson Trails Blvd. is anticipated to take place between May 2024 and June 2025.
History of Past Town Council, Boards & Commissions, or Other Discussions
This project has been presented in association with CVI in various forms within the last two Transportation Master Plans (TMP), which includes the 2017 TMP. The relocation was originally conceptualized as part of CVI in the late 1980’s when the Dawson Ridge subdivisions were approved. Initial FHWA documents were completed in 2004 with the approval of an Environmental Assessment (EA) and the Finding of No Significant Impact (FONSI) recognized this project would be undertaken in association with CVI.
The design contract for Dawson Trails Blvd. with CORE Consultants was approved by Council in October of 2021. Town Council approved a construction contract for package 1 of CVI in June of 2023, and the Notice to Proceed was issued in February of 2024.
The proposed management agreement was presented to the Public Works Commission on April 1, 2024 to receive formal recommendation for Town Council approval. The Public Works Commission voted four (4) to two (2) to recommend Town Council approval. Commissioners Fletcher and Willie were the two dissenting votes. The Commissioners expressed concerns that Metropolitan Districts apply a property tax to pay debt and have a history of mismanaging those funds. There was a voiced opinion that the Town should develop stringent regulation related to Metropolitan Districts tax authority and management of the resident’s funds. They did feel that this agreement
makes sense to assist with saving public dollars.
Discussion
The Dawson Trails Blvd. construction is the next step in the process to allow the full operation of CVI. This project was not included in the construction of CVI to ensure the design and construction would utilize Town criteria, and not be subjected to higher prices associated with federal requirements. This allows the Town to coordinate with the adjacent development projects to gain efficiencies during construction.
In a continued effort to refine the coordination of the development and Town projects, staff has been working closely with the developer through the design of Dawson Trails Blvd. and the interchange. With the coordinating effort, it was recognized the development had major earthwork actives that would bring in excess of one million yards of material across the boulevard for their overlot grading needs. This was recognized as needing to be done prior to opening the interchange to lessen the impact to the traveling public at the time of the interchange opening.
The construction of Dawson Trails Blvd. will be managed by the Dawson Trails Metro District. With the Metro District managing multiple projects in the general vicinity, efficiencies are gained on their side. This also translates to efficiencies gained in the bidding of the boulevard project and the adjacent development projects.
Dawson Trails Metro District will acquire all permits needed to construct this project. This includes the construction permit issued by the Town’s Development Services Department. Through the issuance of the construction permit the Development Services Inspection staff will provide quality control inspections for the project.
Additional effort may be required for pay item quantity tracking by the Development staff. Public Works and Development Services will develop a cost for this effort and submit a budget transfer request.
The agreement provides that the construction timeframe for Dawson Trails Blvd. will be between May 2024 and June of 2025. This falls within the timeframe that CVI will need to have this route open to complete aspects of the interchange. Douglas County is anticipating to bid and start construction of their portion of Dawson Trails Blvd. in the fall of 2024, and complete construction within the timeframe needed for the interchange.
Budget Impact
The funds necessary for the construction management agreement have been budgeted in the CVI overall budget. Staff has budgeted $1,000,000 for construction management of Dawson Trails Blvd. during initial estimating for the project. The construction of Dawson Trails Blvd. is estimated at $13 million, so the 3.5% management fee would result in an estimated cost of $455,000. This amount is accounted for as part of the entire $14.2 Million remaining expenditure for constructing this segment that is shown in the chart on the next page. The Town will be invoiced by the Dawson Trails Metro District after Town staff has reviewed and agreed to the requested amount. The cost of the Town’s construction permits and additional effort for quantity tracking is estimated at $250,000. It is anticipated that savings of approximately $300,000 will be realized by implementing this construction management plan. With the contractors being able to bid on adjacent projects, it is anticipated additional savings will be realized for construction cost. This proposed construction savings should result in continued savings in the construction management fee.
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 Town Council approve the resolution as introduced by title. The Public Works Commission also formally recommends Town Council approval.
Proposed Motion
“I move that Town Council approve the Resolution as Introduced by title.”
Alternate Motions
“I move to approve the resolution as introduced by title with the following changes ____”
“I move to continue this item to a future Town Council meeting date”
Attachments
Resolution
Contract
Attachment A: Map