To: Members of the Castle Rock Water Commission
From: Mark Marlowe, P.E., Director of Castle Rock Water
David Van Dellen, P.E., Assistant Director of Castle Rock Water
Roy Gallea, P.E., Engineering Manager
Scott Tait, E.I., Project Manager
Title
Resolution Approving the Tri-Party Agreement for Design Services for the Highway 85 Wastewater Collection and Treatment system Project [Located in Northwester Douglas County with Castle Rock Water managing the use of Douglas County’s American Rescue Plan Act Funding for this project]
Town Council Agenda Date: August 15, 2023
Body
________________________________________________________________________________
Executive Summary
Castle Rock Water (CRW) is requesting Town Council approval of a Resolution (Attachment A) approving a Tri-Party Agreement for the Design Services for the Highway 85 Wastewater Collection and Treatment System Project (Exhibit 1) between CRW, Carollo Engineers, Inc. (Carollo) and Dominion Water & Sanitation District (Dominion). The purpose of this agreement is for Carollo to provide CRW and Dominion with preliminary engineering design for the Highway 85 Wastewater Collection and Treatment System Project (Project). This agreement is being funded solely from Douglas County’s American Rescue Plan Act (ARPA) funds. CRW is not putting any funding into this agreement. CRW will receive a 1% project management fee for the ARPA portion of the funding for managing this agreement in an amount of $16,654.00.
This agreement is a sole source agreement with Carollo (see Attachment B). Carollo has been working for Dominion on the design of key portions of the Project for several years, and for this reason, CRW staff is recommending sole sourcing to Carollo. CRW staff believe it would take significant additional cost to bring a new consulting engineer into the design at this point. Further, a separate intergovernmental agreement between CRW and Dominion under consideration at the same time, requires the use of Carollo for this work. Douglas County has confirmed that this work can be sole sourced using Revenue Loss portions of the ARPA funding. A letter recommending that Douglas County confirm approval of this agreement has been sent to Douglas County, and Castle Rock will only sign this agreement once we receive Douglas County’s concurrence in accordance with intergovernmental agreement (IGA) between Douglas County and Castle Rock.
The Project will be broken into two phases with Phase 1, the extent of this request, entailing the design of a wastewater lift station in Louviers, a force main from that lift station connecting to a gravity sewer in Sterling Ranch that will flow through the Dominion wastewater collection system to the newly constructed Chatfield Basin Water Reclamation Facility (CBWRF) which will be designed to a capacity of 0.9 million gallons per day (MGD) for the site work and 0.4 MGD from a process and treatment standpoint under this agreement. A Reuse Pumping Facility (RPF) that will be constructed near the CBWRF for returning flows to Castle Rock’s reservoirs #1 and future reservoir #2 now under construction by the Town. The return flows will be pumped back through the existing Ravenna pipeline or CRW’s future planned Chatfield Pump Back pipeline. CBWRF will also be able to discharge treated wastewater effluent to the South Platte River near Waterton Road, along the Caretake Road, river corridor.
Phase 1 will be funded by Douglas County through American Rescue Plan Act (ARPA) funding in accordance with the IGA between Castle Rock and Douglas County. Additional capacity at the CBWRF needed by Dominion will be funded by Dominion as part of this agreement. CRW will own the Louviers lift station and be a prorated capacity share owner of the RPF. Dominion will own the Louviers force main, the CBWRF and be a prorated capacity share owner of the RPF. CRW will be either the retail or wholesale wastewater provider to the existing collection system in Louviers depending on the IGA currently under discussion with the Louviers Water and Sanitation District (Louviers) and CRW.
The cost of this agreement is $1,514,000.00 with a CRW managed 10% contingency of $151,400.00 for a total authorization of $1,665,400.00 for the preliminary engineering design services for the Project. Of the preliminary engineering fee in this agreement, $0.00 will be covered by Dominion. If Dominion chooses to seek additional design of facilities beyond those covered in this agreement, those costs will be covered by Dominion in accordance with the IGA between Dominion and Castle Rock (see Attachment D) which is also currently under consideration.
A summary of known project costs and future estimated costs are shown below:
|
Phase 1 Projected |
ARPA Fund Estimates |
|
Carollo Preliminary Design Fee |
$1,665,400 |
|
Final Design Fee (Estimate) |
|
|
Construction Services (Estimate) |
$ 500,000 |
|
Easements (Estimate) |
$ 410,000 |
|
Construction Costs (Estimate) |
$22,640,000 |
|
Peer Review/Audit Services (Estimate) |
$ 0 |
|
CRW Project Management Fee (1%) |
$ 268,000 |
|
Contingency |
$ 1,500,000 |
|
Total Cost |
$26,800,000 |
|
|
|
Notification and Outreach Efforts
Douglas County has produced a video and provided an email outreach of the video to their subscriber list for this project. Douglas County will continue to promote the project. CRW plans, in coordination with the Collaborative Project Delivery Team and Stakeholders to host an open house for the project. CRW will post project information on CRW’s Projects web page along with updates for the project. CRW will work with the County to have them provide an informational mailing to potential customers and residents in Louviers, Sedalia, and the rest of the proposed Service Area.
History of Past Town Council, Boards & Commissions, or Other Discussions
On April 26, 2023, Castle Rock Water Commission recommended Town Council approval of an IGA with Douglas County for the Highway 85 Wastewater Treatment and Collection Project.
On May 2, 2023 Town Council approved an IGA with Douglas County for the Highway 85 Wastewater Treatment and Collection Project.
In concurrence with this contract, Town Council is also being requested to approve a resolution for an IGA with Dominion Water and Sanitation District for this Project and collaborative engagement within the corridor. An IGA with the Louviers Water and Sanitation District is at the terms discussion level with plans to bring the IGA to a future Town Council meeting.
Discussion
Phase 1
The project will be completed in two phases. Phase 1 will be to construct infrastructure to provide roughly 200,000 gallons per day of average daily collection and 200,000 gallons per day treatment capacity in the Highway 85 corridor and another 200,000 gallons per day of treatment capacity for Dominion. The project will be broken down into:
• Louviers Lift Station
• Louviers Force Main
• Chatfield Basin Water Reclamation Facility
• Reuse Pumping Facility
The Collaborative Project Delivery Team (CPDT) consisting of CRW, Dominion and Carollo will manage all aspects of the professional engineering and construction services for the permitting, design and construction of the infrastructure of Phase 1 of the Project. A work breakdown structure and Gantt style schedule will be developed with the various project components identified.
The CPDT will evaluate the most appropriate project delivery methods for the various project components based on the rules of the ARPA funding, permitting, the schedule, technical aspects of the work, availability of qualified consultants and contractors, and availability of critical equipment (pumps, treatment process equipment, etc.).
CRW will work with Douglas County and Dominion to set up the appropriate escrow accounts for each contract awarded as part of the project. As design progresses, the CPDT will begin easement and property identification and acquisition. Temporary easements will be obtained that are needed for the construction of the infrastructure. Easements will also be obtained for a multipurpose trail proposed by Douglas County to go through some of the areas if any of the proposed locations matches the wastewater collection piping routes. Also, as part of the design, permitting will be completed for each work phase. As designs for each phase are complete as appropriate depending on the delivery method used, construction bidding will be completed. Work will be awarded with Douglas County concurrence. Carollo and the CPDT will oversee construction for each phase as appropriate to ensure we receive a quality project.
CRW is planning on constructing the infrastructure using alternative delivery methods as allowed based on the ARPA funding rules. For example, Castle Rock will consider the Construction Manager at Risk (CMAR) delivery method for some components of the project. The CMAR delivery method is designed for speed of construction implementation and transparency of costs in addition to communitive and excellent collaboration between internal and external stakeholders of the project. If CMAR is used, at the 30% engineering design level, construction contractors will be solicited to submit labor, materials, overhead and profit proposals for the project which Castle Rock will oversee and evaluate with input from the professional engineering services team. The CMAR contractor will provide a Guaranteed Maximum Price Construction Management (GMPCM) contract at that time and work towards developing a Final Guaranteed Maximum Price (FGMP) contract.
Provision of Wastewater Service
Once the project infrastructure is complete, Castle Rock Water will own, operate, maintain, repair and replace the Louviers lift station infrastructure in the Highway 85 corridor and be an owner in the RPF based on actual prorated capacity. The wastewater treatment plant (CBWRF) will be assigned to Dominion to own, operate, maintain, repair and replace once construction is complete.
Castle Rock Water will provide retail and/or wholesale wastewater service in the Service Area. In addition to operating and maintaining the system, this service will include an annual cost of service evaluation and setting of rates and fees, billing and customer service. Castle Rock will also consider providing retail water service where water supply is available from other entities (i.e., not Castle Rock) and the customer would like to have that service as well as part of a more holistic retail service.
As the wastewater provider, CRW will also annually evaluate and set system development fees (SDFs) to be paid by customers connecting to the system, which fees will be different for existing development in the service area as of January 1, 2023, verses new development and redevelopment. For all potential customers, CRW will determine necessary improvements, available capacity and SDFs and then provide a will serve letter if service can be provided.
Phase 2
Phase 2 will entail the design of a gravity sewer line towards Sedalia that will be funded by SDFs collected from new development in the service area (see Attachment C). Carollo has provided an optional task for the Phase 2 design in the amount of $1,184,100 for informational purposes only.
CRW will utilize SDFs to build Phase 2 of the project in the future to allow service to be provided beyond the capacities created in Phase 1. SDF revenue will be put into a project fund. As funds accrue, Castle Rock will design, permit and construct additional infrastructure in the corridor. Ultimately, the concept will be to construct a full collection system from the Titan Road Lift Station to just North of Plum Creek Water Reclamation Authority and approximately 1 million gallons per day of average daily flow treatment capacity. Beyond Phase 1 capacities, CRW will evaluate availability of renewable water supplies for new development and redevelopment. Confirmation of renewable water supplies will be an additional requirement in order to gain wastewater services.
Budget Impact
The monies for this Agreement will be funded by Douglas County ARPA funds and Dominion funds. CRW will receive a 1% fee ($268,000) for the project management of the design and construction services for the overall project.
Staff Recommendation
Staff recommends approval of the Tri-Party Agreement for Design Services for the Highway 85 Wastewater Collection and Treatment System Project for $1,514,000.00 with a Town managed 10% contingency of $151,400.00 for total of $1,665,400.00.
Proposed Motion
“I move to recommend to Town Council approval of the Resolution as presented”
Attachments
Attachment A: Resolution (Not Attached)
Exhibit 1: Agreement
Attachment B: Sole Source Form (Not Attached)
Attachment C: Map of Project Area
Attachment D: Dominion-Castle Rock Wastewater IGA