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, Engineering Manager
Matt Hayes, CIP Project Manager
Title
Resolution Approving a Construction Contract with Velocity Constructors, Inc. for the Bell Mountain Ranch Ground Storage Tank and Booster Station Project [Bell Mountain Ranch Subdivision]
Body
________________________________________________________________________________
Executive Summary
Castle Rock Water is seeking Town Council approval of a resolution approving a construction contract (Attachment A) with Velocity Constructors Inc. (Velocity) for the Ground Storage Tank 20C & Booster Station Project. Castle Rock Water has recently entered into an agreement with the Consolidated Bell Mountain Ranch Metropolitan District for Water Services. This project will construct a new water storage tank that will serve The Ridge at Crystal Valley and a new booster pump station that will serve The Ridge at Crystal Valley and Bell Mountain Ranch. Contractor submitted the lowest responsive bid for a total construction cost of $2,857,417. Staff also requests approval for a 15% Town-managed contingency of $428,612, for a total project authorization of $3,286,029.
Notification and Outreach Efforts
The Consolidated Bell Mountain Ranch Metro District has been doing outreach to their customer base for approximately 18 months with a monthly newsletter sent to each customer providing details of the proposed change in service providers. CRW attended an online community meeting with the BMRMD board and BMR citizens on September 2, 2021. The board presented an overview of the proposed connection to the Town’s water system and terms of the agreement, and CRW participated by answering questions and providing more information about the proposed water service. CR Water staff have also attended two Bell Mountain HOA meetings on February 3, 2022 and March 3, 2022.
CR Water has sent notice letters to residents that may be impacted by the construction of the pipeline. CR Water staff have also met with most of the residents that will be impacted by the project. CR Water will send out a notice of construction letter to the residents of Bell Mountain Ranch and host an open house for the project. Additionally, project updates will be posted on the department’s webpage.
History of Past Town Council, Boards & Commissions, or Other Discussions
CRW presented the concept of an extraterritorial agreement to the Water Resources Committee in November 2013. The Water Resources Committee was receptive to this idea and CRW continued to work with BMRMD on draft terms for a service agreement.
On October 6, 2020, CRW presented draft terms to the Water Resources Committee and received a favorable response.
On October 20, 2020, CRW presented an update and draft terms of an extraterritorial water service agreement to Town Council. Council directed staff to proceed with developing an extraterritorial water service agreement with BMR.
On October 28, 2020, CRW presented an update to the CRW Commission regarding the potential for an extraterritorial service agreement with BMR. Commission members were very supportive of moving forward on an agreement.
On July 28, 2021, the proposed water service agreement was presented to the CRW Commission and the CRW Commission voted unanimously in support of the extraterritorial agreement.
CRW has met with Douglas County officials several times over the past few years and, most recently, on July 22, 2021 to discuss this plan. Douglas County supports this water service agreement.
On November 2, 2021, a Resolution Approving an Intergovernmental Agreement Between the Town of Castle Rock and the Consolidated Bell Mountain Ranch Metropolitan District for Water Service and Improvements was presented to Town Council and was approved.
On May 25, 2022, the proposed project was presented to the CRW Commission. At the time of the meeting final bid costs had not been received so CRW Commission gave a general approval of the project as a whole. The final project packet will be shared with CRW Commission prior to the June 21, 2022 Town Council meeting.
Discussion
The new booster pump station will be located in the Ridge at Crystal Valley’s development. The pump station will be used to move Green Zone water up into the Tan Zone to serve The Ridge and Bell Mountain Ranch. The pump station also will be equipped with an automated pressure reducing valve to allow for the transfer of Bell Mountain Ranch water back into the Town’s distribution system. The new ground water storage tank will be constructed at Bell Mountain’s tank site (Attachment B). The new tank will be used solely to meet the water demands and fire storage for The Ridge development. Construction of the new facilities will begin this summer and be completed by May of 2023.
BMR is a platted subdivision zoned - Planned Development Nonurban (PDNU) - in unincorporated Douglas County and is contiguous to the Town on the Town’s southern. The subdivision originally was platted for 305 single family homes and currently includes 305 occupied homes within its boundaries. An additional 16 home sites have been added bringing the total to 321. BMR operates its own public water system, but has struggled with water supply and water quality issues over the years, and more recently is under the gun to solve a compliance matter related to water treatment residuals. Representatives of the District have met with CRW staff numerous times over the past eight years and requested that the Town consider options for connecting BMR to the Town’s water system. They have considered other alternatives to solving water quality issues, including upgrading their existing water treatment system, but that will not solve their long term renewable water supply issue. The Ridge is a new development located at the southwest corner of the Crystal Valley Ranch subdivision. The majority of this development is located above the Town’s existing green pressure zone. The Ridge development is required to construct a new pump station and tank to serve their development. The Ridge and BMR have partnered on this project to build a water main and pump station that will benefit both entities. The new pump station will allow CR Water to move water to and from the BMR distribution system. The cost for the new water main and pump station will be shared between BMR and The Ridge at a 70/30 split.
Budget Impact
The request for bids for the project was sent to five qualified contractors. Contractors are pre-qualified for projects annually through a request for qualifications that is advertised on BidNet. Bids were received from two contractors, as summarized in the table below. The Engineer’s estimate for the tank is $2,249,969 and $898,107 for the booster pump station. The low bid was received from Contractor and is considered a responsive bid.
The cost for this project will be reimbursed by the Bell Mountain Ranch customers and The Ridge at Crystal Valley Ranch based on a 70/30 split for the booster pump station. The Ridge at Crystal Valley Ranch will reimburse the Town for the full cost of the storage tank per the amended development agreement. The project will be funded from the Bell Mountain Infrastructure & Improvements Account (Account No. 210-4275-442-79-06. Contractor’s bid is $2,857,417. Staff requests an additional $428,612 (Town-managed 15% contingency) be authorized for a total project authorization of $3,286,029. The additional contingency may be needed due to power availability. The pump station is designed to use three phase powner, but only single phase may be available at the time the pump station is commissioned. The engineer is estimating the additional cost to convert the electrical system to operatate on single phase power will be approximately $150,000.
Staff Recommendation
Staff recommends Town Council approval of the resolution approving the construction contract between the Town of Castle Rock and Velocity for the construction for the Ground Storage Tank 20C & Booster Station in the amount of $2,857,417 plus a 15% Town-managed contingency of $428,612 for a total authorization of $3,286,029.
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
Attachment A: Resolution
Exhibit 1: Agreement
Attachment B: Project Map
Attachment C: Approval Letter from BMR
Attachment D: Email Approval from The Ridge at CVR