To: Honorable Mayor and Members of Town Council
From: Mark Marlowe, P.E., Director of Castle Rock Water
Matt Benak, P.E., Water Resources Program Manager
Heather Justus, P.G., Water Resources Program Analyst
Title
Resolution Approving the Services Agreement between the Town of Castle Rock and Applied Ingenuity, LLC for the Denver Basin Wells Rehabilitation and Pumping Equipment Replacement [Existing infrastructure around Castle Rock]
Body
________________________________________________________________________________
Executive Summary
The purpose of this memorandum is to request Town Council approval of a Resolution Approving the Services Agreement between the Town of Castle Rock and Applied Ingenuity, LLC for the Denver Basin Wells Rehabilitation and Pumping Equipment Replacement (Attachment A). In 2016, Castle Rock Water completed five Denver Basin rehabilitation and equipment replacement projects due to equipment failure. Of those five projects, four were emergency projects completed during the high demand season. Castle Rock Water feels a proactive program will reduce emergency situations and enhance water supply security. One of the goals within the Water Resources Division of Castle Rock Water is to begin an annual rehabilitation and equipment replacement program for the Town’s Denver Basin Aquifer wells. This program is designed to help maintain well yields and to mitigate potential emergency well failures. The program will target the wells that are showing declines in well yield and/or have been identified as equipped with older pumping equipment. The program includes a goal of rehabilitating seven wells a year. The scope developed for this year’s project includes four full rehabilitations and equipment replacements and an investigation into bringing two wells back online to meet high demands. Castle Rock Water recommends approval of a services agreement with Applied Ingenuity in the amount of $557,132 for the 2017 Denver Basin Wells Rehabilitation and Pumping Equipment Replacement project.
History of Past Town Council, Boards & Commissions, or Other Discussions
On February 22, 2017, the CR Water Commission voted unanimously to recommend Town Council approval of the services agreement for the Denver Basin Wells Rehabilitation and Pumping Equipment Replacement to Town Council for approval.
Discussion
It is important to keep our existing infrastructure operating in an efficient manner to ensure that peak water demands during dry summer months can be met, without resorting to water curtailment measures. In order to do this, the Water Resources Division has established an annual rehabilitation and equipment replacement program for priority deep Denver basin wells. A formalized program will help mitigate emergency well services due to pumping equipment failure. This will be accomplished by identifying the wells that are showing declines in production due to bio-fouling and wells with older pumping equipment. Replacing older pumping equipment often provides the opportunity to resize equipment so that better efficiency is achieved for the existing production rates, potentially reducing the long-term costs to operate the wells.
The scope of work for the 2017 Well Rehabilitation and Pumping Equipment replacement program includes the rehabilitation and equipment replacements for the following wells CR-149 (Denver), CR-28R (Arapahoe), CR-82 (Arapahoe), CR-105 (Denver), CR-15 (Denver) and CR-16 (Dawson). Staff would also like to include funds for the ability to cover any costs associated with hauling the cleaning water offsite, if we are unable to use the sanitary lines. Location maps of the proposed wells are included as Attachment B.
The request for proposals was sent out to five water well contractors and four responded. The following table shows the results:
|
Water Well Contractor |
Bid Amount |
|
Applied Ingenuity, LLC |
$557,132.00 |
|
Colorado Pump Service and Supply Co. |
$581,261.73 |
|
Layne Christensen Co. |
$658,998.30 |
|
Hydro Resources - Rocky Mountain Inc. |
$771,690.00 |
|
Stewart Brothers |
No Bid |
|
Engineer’s Estimate |
$720,000.00 |
Applied Ingenuity’s proposal addressed the full scope of work and alternative scope items, and staff believes the proposal amount to be a good value to the Town based on previous similar scopes of work. Applied Ingenuity has provided excellent service to the Town including supplying a temporary pump at no additional cost while the permanent equipment was delayed in delivery due to complications from the supplier. The temporary pump allowed the Town to continue to provide high quality service during the 2016 higher demand season. Applied Ingenuity provided services for all of the 2016 emergency services in a timely manner. They are also very responsive when emergencies occur, often coming out to help identify the potential problem within twenty-four hours’ notice. Staff is confident of Applied Ingenuity’s capabilities to complete this project, and we recommend award of the services contract to Applied Ingenuity.
Budget Impact
Funding for this project is available in the approved 2017 budget, and will come from Accounts Repair and Maintenance -Wells 210-4250-442.40-37 ($400,000 budgeted) and Well Rehab and Replace 210-4275-442.76-53 ($500,000 budgeted). The following table shows the breakdown of funding. Town staff will use the funds to complete rehabilitation and equipment replacement for this project. The Applied Ingenuity proposal fee is $557,132, and staff requests an additional $90,000 Town-managed contingency be authorized for hauling and disposal costs of the discharge the neutralized cleaning water, if we are unable to use the sanitary lines for disposal. The $90,000 was included in the bid request as an optional line item. Total authorization requested is $647,132.
|
Project Account |
Amount |
Contingency |
Total |
|
210-4275-442.76-53 |
$500,000 |
$0 |
$500,000 |
|
210-4250-442.40-37 |
$57,132 |
$90,000 |
$147,132 |
|
TOTAL |
$557,132 |
$90,000 |
$647,132 |
Staff Recommendation
Staff recommends Town Council approval of the services agreement between the Town of Castle Rock and Applied Ingenuity, LLC for the Denver Basin Wells Rehabilitation and Pumping Equipment Replacement project in the amount of $557,132 plus a Town-managed contingency of $90,000, for a total authorization in the amount of $647,132.
Staff Recommendation
“I move to approve the resolution as introduced by title.”
Attachments
Attachment A: Resolution
Exhibit 1: Agreement
Attachment B: Location Map