To: Honorable Mayor and Members of Town Council
From: Mark Marlowe, P.E., Utilities Director
Title
Resolution Approving a Construction Contract with Garney Companies, Inc. for the WISE Local Infrastructure Construction Project
Body
________________________________________________________________________________
Executive Summary
The Utilities Department is seeking Town Council approval of a Resolution (Attachment A) awarding a construction contract (Exhibit 1) with Garney Companies, Inc. (Garney), for the Water Infrastructure and Supply Efficiency (WISE) Local Infrastructure Construction Project. The Garney project cost is $13,448,015. This cost includes construction services to complete the potable water distribution system infrastructure needed to convey WISE water from the Parker Water and Sanitation District’s (PWSD) water distribution system to the Town’s existing distribution system. Bids were received from five pre-qualified contracting firms who specialize in water infrastructure construction projects. Bids ranged from a high of $18,379,670 to Garney’s low bid of $13,448,015. Garney’s bid was approximately 21 percent lower than the engineer’s construction cost estimate of $17,006,800.
Garney shall undertake the work upon execution of the agreement and receipt of a notice to proceed from the Town. Work is scheduled to be complete by July 14, 2017. Staff also requests approval for a five percent staff-managed contingency, $624,400, for a total project authorization of $14,072,415. A location map for the proposed potable water transmission pipeline is provided (Attachment B). Funding for this project was budgeted in the 2016 budget line item “WISE Infrastructure” (account no. 211-4375-443.77-72), which has a current budget of $36,342,616, and an uncommitted balance of $32,328,858.65.
The Town is developing a separate License Option Agreement with Dominion Water and Sanitation District (Dominion), whereby Dominion will be funding approximately 29 percent of the cost of the project for Council consideration. Key terms of this agreement include:
• A five year license option term
• Interest at one percent above our current carrying costs
• A cash payment of approximately $219,000 at signing
• A one percent administrative fee to Castle Rock for contract management
• If Dominion defaults, Castle Rock keeps all payments and all pipeline capacity.
Staff is also recommending approval of a contract amendment with Burns and McDonnell Engineering Company (B&McD), the design engineer, for $16,654 in additional design costs incurred to complete the design. These additional costs were needed to complete contract documents and helped to focus the final design, resulting in much better than expected construction bids.
History of Past Town Council, Boards & Commissions, or Other Discussions
Utilities staff presented the specifics of this project to the Utilities Commission at their regularly scheduled meeting held on October 26, 2016. The presentation highlighted the scope and complexity of this capital improvement project. These types of renewable water projects support the Town’s long term water goal of providing a 75 percent renewable water supply for the community by 2050. The Utilities Commission voted to recommend Town Council approval of this project. In addition, this project was presented to the Douglas County Planning Commission on October 17, 2016 for Location and Extent approval and it was approved unanimously without question or public comment.
Discussion
A need for a sustainable, long-term water supply was identified in the Town’s Water Resources Strategic Master Plan (WRSMP). One of the major goals of that plan is to establish a renewable, sustainable water supply that accounts for 75 percent of the annual demand for water in Castle Rock. Renewable water sources include existing surface water rights along East and West Plum Creek, reusable lawn irrigation and sewered return flows water rights, and imported surface water from outside of the Plum Creek Basin.
The Town plans to import renewable water from various sources through existing and proposed infrastructure outside of the Town’s boundaries. These water sources will consist of renewable water treated to drinking water standards. A near-term source of imported, renewable water will be from the WISE Project. The Town expects WISE water deliveries towards the end of 2017.
The WISE water supplies to be conveyed to the Town beginning in 2017 could total up to 7 million gallons per day (MGD), and the Town anticipates northern water supplies to increase in the future. The pipeline has been sized for approximately 14 MGD to accommodate future additional supplies. The initial 7 MGD is planned to be shared with Dominion Water and Sanitation District, as specified in previously completed Intergovernmental Agreements and a License Option Agreement for the pipeline to be constructed in this project. Key terms of this agreement were provided in the Executive Summary. Dominion would need to have a future connection, completed by Dominion, near the western side of the Town’s water distribution system to convey their WISE water to their development. Dominion’s share of the pipeline capacity and costs, as identified in the License Option Agreement, is 29 percent.
Work for the WISE Local Infrastructure construction project generally consists of furnishing, installing, connecting, and testing a potable water pipeline as required to convey WISE water from the PWSD infrastructure near Outter Marker Rd. in Douglas County, to the Ray Waterman Regional Water Treatment Center. Work includes installation of approximately 5.1 miles of 36-inch PVC and 1,300 linear feet of 24-inch PVC potable waterlines. Approximately 3,000 linear feet of 36-inch potable waterline will be installed by way of horizontal directional drilling (HDD), and approximately 1,200 linear feet of 48-inch steel casing is to be installed by trenchless bore construction methods. A steel casing pipe will be jacked into place and support the earthen conduit created by equipment used to bore the hole. The 36-inch diameter PVC water pipeline will then be installed through and supported within the casing pipe.
Castle Rock Water publicly advertised daily during the week of August 15 in the Denver Daily Journal (Dodge Data & Analytics) requesting pre-qualification documents from contractors who were interested in being pre-qualified to bid on the WISE Local Infrastructure Project. Interested contractors were required to, among other items, provide information, complete, sign and attest a questionnaire, and demonstrate they were qualified to successfully complete a waterline project per the forms and conditions contained within the Contractor Pre-Qualification Package. Pre-qualification packets were received from six construction firms and out of the six packets received, five construction firms were pre-qualified.
Invitations to bid this project were requested from the five qualified contracting firms, including BT Construction, Garney, Layne Heavy Civil, T. Lowell Construction, and Wildcat Construction. Bids were received from all five firms. The following table lists the total bid cost received from each of the five general contracting firms.
|
Consulting Firm |
Total Cost |
|
Garney |
$13,448,015 |
|
Layne Heavy Civil |
$14,638,833 |
|
BT Construction |
$15,579,065 |
|
T-Lowell Construction |
$16,500,000 |
|
Wildcat Construction |
$18,379,670 |
In the past several years Garney has completed multiple water pipeline projects including 36-inch diameter PVC potable water piping, and projects using larger diameter piping typically made of steel. In 2014, Garney successfully completed a $21 million project for Cheyenne Utilities in Wyoming, and B&McD was also the engineer of record on that project. Burns & McDonnell Engineering has worked with the Garney project manager and their crews, who are scheduled to work on the Town’s project. B&McD is confident in Garney’s ability to successfully perform this project. Construction of the WISE Local Infrastructure Project is scheduled to be complete in the July of 2017 timeframe and ahead of when PWSD may be able to distribute WISE water to the Town. PWSD is estimating that WISE water will be ready for delivery to the Town in November 2017.
Burns & McDonnell Engineering Company are the engineers on record for the WISE Local Infrastructure Project and they have completed a detailed evaluation of the bid packet received from Garney. B&McD has submitted a letter to the Town recommending award of the construction contract to Garney (Attachment C). Staff recommends construction of the WISE Local Infrastructure Project be awarded to Garney.
Also of note, B&McD completed design services outside the original scope of work and we are requesting approval of a contract amendment with B&McD in the amount of $16,653. Additional services by B&McD included completing drawings and specifications detailing pipeline construction through rock material. A geotechnical report completed during the design phase under the original scope of work suggests that rock blasting will be required in order to successfully install the water pipeline. B&McD also coordinated the WISE Local Infrastructure pipeline project with development plans prepared by The Canyons South planned developments. Utilities acquired permanent and temporary construction easements through this planned development and worked with the developer to design the Town’s WISE Local pipeline at depths that would not require the developer to lower the waterline in the future, saving significant costs. Lastly, B&McD assisted the Town through the process to prequalify contracting firms who received plans and specifications to bid on the construction project. These additional services helped minimize unknown risks that contractors take into consideration when preparing their bids. B&McD services added value to the overall project for the Town and helped foster a good bidding environment, where the low bid was $3,558,785 lower than the engineer's construction cost estimate.
Budget Impact
On Aug. 16, 2016, Town Council approved a budget amendment to the WISE Infrastructure Projects account in the amount of $22,343,122. The budget amendment estimated these costs to be approximately $20,980,000; therefore, these costs are well within the revised budget.
Utilities budgeted approximately $36,340,000 in 2016 for WISE Infrastructure Projects. Funds for the WISE Local Infrastructure Construction Project will come from the WISE Infrastructure account (account number 211-4375-443.77-72). This account currently has a balance of approximately $32,328,858.65. $4,013,757.35 has been committed to other pieces of the WISE project. There are sufficient funds in this account for the WISE Local Infrastructure Construction Project. In addition, staff requests a Town-managed contingency in the amount of $624,400, for a total project authorization of $14,072,415. (Attachment D) shows all of the WISE project components, total spent or committed to-date and total spent or committed in 2016.
Staff Recommendation
Staff recommends Town Council approval of the Resolution approving the construction contract for the WISE Local Infrastructure Project with Garney Companies, in the amount of $13,448,015
(Attachment A).
Proposed Motion
“I move to approve the Resolution as introduced by title.”
Attachments
Attachment A: Resolution
Exhibit 1: Contract
Attachment B: Map
Attachment C: Letter
Attachment D: Expenditure Table