To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Mark Marlowe, Director of Castle Rock Water
Roy Gallea, P.E., Engineering Manager
Erin Evans, P.E., Project Manager (CRW)
Andrew Focht, Project Manager (PW)
Title
Discussion/Direction: Fifth Street Water and Sewer Improvements Project [Sanitary and Water Service on Fifth Street near Valley Drive]
Body
________________________________________________________________________________
Executive Summary
Castle Rock Water (CRW) is currently working on the Fifth Street Water and Sewer Improvement Project (Utilities Project) to design and construct water and sanitary sewer utilities on Fifth Street as shown in Attachment A. A need for this project became evident through several avenues including requests by the St. Francis Catholic Church and Cornerstone Church to connect to Town Utilities as well as the Fifth Street Improvements Project (Roadway Project) being managed by Public Works. As part of the Right-of-Way (ROW) acquisition process for the Roadway Project, an opportunity to use Public Works funds being allocated to the rehabilitation of a septic tank system for water and sanitary sewer service to the Degarmo property at 2864 Fifth Street instead was also identified.
With the Roadway Project planned to start early 2025, staff has identified a need to accelerate the completion of design and construction of the Utilities Project ahead of the Roadway Project. This process also includes executing reimbursement agreements with the property owners along Fifth Street who will be serviced by the new utilities. Agreements are currently being negotiated with the Degarmo property owners and Public Works for ROW acquisition and connection to Town sanitary sewer and water service. Additionally, the Town has been coordinating with the St. Francis and Cornerstone Churches regarding connection to Town utilities and reimbursement to the Town for design and construction of their services.
The Town Manager awarded a service agreement with Stanley Consultants (Stanley) in November of 2024 for design of the water and sanitary sewer pipelines for the three properties identified by this project. Stanley was granted a sole source exception for this service agreement due to their familiarity with the Fifth Street Roadway Project and the requirement for a speedy completion of the design and construction of the Fifth Street Utilities Project ahead of the Roadway Project.
An alternative project delivery method, Guaranteed Maximum Price Construction Management (GMPCM), is being used for design and construction of the proposed Utilities Project. Alternative project delivery methods have been successfully utilized by the Town for design and construction projects such as the GMPCM contract used for many of the Plum Creek Water Purification Facility (PCWPF) projects that have been completed over the years. For this project, an alternative project delivery method was chosen in order to accelerate the overall Utility Project timeline by allowing a phased design and construction approach and including a more thorough constructability review during design.
Global Underground (Global) was selected as the Construction Manager and General contractor (CM/GC) through a sole source procurement process and has a proven track record in the industry as well as specifically on Castle Rock Water projects. Previous successful projects with CRW, knowledge of the Town’s utilities and geography, availability of resources to meet the required schedule constraints, and exceptional customer service allow Global to stand out as a preferred contractor to undertake these construction services. Upon authorization to award work package (WP) #1, Global will begin ordering long lead materials. Global plans to begin site mobilization in Spring 2025 with overall construction completion of the project planned for Summer 2025. Completion of the Utilities Project prior to the start of the Fifth Street Roadway Project being managed by Public Works is a priority for the Town. Installing sewer and water after completion of the Roadway Project would result in the cost of these utilities being much higher in the future.
Costs for this project ultimately will be allocated to the property owners who need connection to Town infrastructure. CRW is working with three property owners currently on reimbursement agreements for their fair portion of the costs. If for some reason, agreements cannot be reached at this time, CRW still recommends moving forward with this project so the infrastructure is in place for when these property owners and other property owners along the corridor need to connect. A priority of CRW is to capture reuse water that is currently being lost with septic system wastewater disposal within Town.
Budget Impact
Current known and estimated project costs are shown below:
|
Stanley |
Design (including contingency) |
$ 245,000 |
|
Global Underground |
Pre-construction services |
$ 200,000 |
|
Global Underground |
Construction costs* |
$2,500,000 |
|
|
TOTAL |
$2,945,000 |
*Any early material procurement paid for during the preconstruction phase will be eliminated from the construction costs.
Cost for the additional utility upgrades is planned to be shared with the property owners who will be connecting to CRW services including St. Francis and Cornerstone Church. CRW is working with the three property owners to develop reimbursement agreements for their portion of the costs and work. If for some reason, an agreement cannot be reached at this time, CRW still recommends moving forward with this project so the infrastructure is in place for when these property owners and other property owners in the area need to connect. A priority of CRW is to capture reuse water that is currently being lost to septic systems within Town. Construction of the Utilities Project in the future after the Roadway Project would significantly increase the costs.
A preliminary breakdown of the responsibilities for the estimated construction costs and all accessory costs such as design and preconstruction services is as follows:
|
Property Owner |
Estimated Water Construction Cost |
Estimated Sanitary Construction Cost |
Estimated Accessory Cost |
Total Reimbursement to CRW |
|
St. Francis of Assisi |
$0 |
$950,000 |
$168,000 |
$1,118,000 |
|
Cornerstone Church |
$350,000 |
$370,000 |
$130,000 |
$850,000 |
|
Degarmo |
$10,000 |
$820,000 |
$147,000 |
$97,195 (From Public Works) |
|
Totals |
$360,000 |
$2,140,000 |
$445,000 |
|
|
Total Reimbursement to CRW |
$2,065,195 |
Staff Recommendation
Staff recommends Town Council direct staff to prepare reimbursement agreements with the potential customers, finalize construction contracts with Global and proceed with the project to ensure completion prior to the Roadway Project.
Attachments
Staff Report
Attachment A: Fifth Street Utilities Map