To: Honorable Mayor and Members of Town Council
From: Mark Marlowe, P.E., Director of Castle Rock Water
Title
Resolution Approving a Services Agreement with Hydro Resources - Rocky Mountain, Inc. for Construction of Wells CR-15R and CR-16R Drilling, Completion and Equipping Project [2032 Champions Court, Plum Creek Subdivision]
Body
________________________________________________________________________________
Executive Summary
The purpose of this memo is to request the Town Council’s approval of a services agreement with Hydro Resources - Rocky Mountain, Inc. (Hydro) for $1,241,535 for the construction of two new replacement Denver Basin wells that will have the capability to supply water to either the PS Miller Water Treatment Plant (Miller WTP) or Plum Creek Water Purification Facility (PCWPF). Last year Castle Rock Water staff conducted an investigation to determine if well CR-15 and CR-16 could be brought back online using the existing infrastructure. The investigation showed that the well casings in both of the original structures had failed causing a partial collapse in both. This lead to the determination that both wells would need to be replaced. Well CR-15 was completed and brought on-line in September 1982, and CR-16 was completed and brought on-line in June 1983. These well fields fed the Miller Water Treatment Plant (WTP). This plant is rated to treat 2.16 million gallons per day (MGD), and as a result of the collapsed wells, it is currently considered water short and temporarily off-line. There is existing infrastructure that will also allow the raw water to be delivered for treatment at PCWPF. Most of the existing infrastructure will be used for the replacement wells.
The current total project estimate is $1,624,607 as shown by component below:
|
Well drilling |
Hydro Resources |
$ 1,241,535 |
|
Drilling Contingency |
CR Water Staff |
$ 124,153 |
|
Design of pipe and appurtenances |
Castle Rock Staff/Electrical Engineer |
$ 75,000 |
|
Hydrogeologic professional services |
Leonard Rice Engineers |
$ 108,919 |
|
Construction pipe and appurtenances |
Engineer’s Cost Estimate |
$ 75,000 |
|
|
Total Project Estimate |
$1,624,607 |
Staff and Castle Rock Water Commission recommend approving the construction services agreement for drilling the wells, based on the qualified proposal from Hydro in the amount of $1,241,535. In addition, Castle Rock Water Staff requests a 10 percent Town-managed contingency of $124,153, for a total authorization of $1,365,688. Funding for this project is provided in the Water Fund 2018 budget. The resolution is attached as Attachment A. The Services Agreement Contract is included as Exhibit 1.
The overall schedule for the project is for substantial completion by July 2018.
Notification and Outreach Efforts
Castle Rock Water is planning the following outreach:
• Residential letters
• Project information on CRgov.com
• A meeting with the homeowners association (HOA) and golf course
• An open house
• Additional outreach as necessary
History of Past Town Council, Boards & Commissions, or Other Discussions
On January 24, 2018, the Castle Rock Water Commission unanimously recommended that Town Council approve the construction contract with Hydro to complete this project.
Discussion
Based on the Water Resources Supply Demand Model, the recent population growth trend in Castle Rock, and the last two summer water demand seasons, additional water supply is needed to keep pace with increased water demands. It is also critical to maintain existing capacities and replace failed infrastructure.
Wells CR-15R and CR-16R will be located on the Town parcel adjacent to the Plum Creek Golf Course and Plum Creek community at 2032 Champions Court (see location map, Attachment B) on the same parcel that wells CR-15 and CR-16 are located. The project will include the construction of two new Denver Basin Aquifer wells (Denver and Dawson), updated controls and transmission pipe to convey the water to the existing metering vault. Staff anticipates that this facility will produce approximately 0.43 MGD of raw water supply for the Town. Leonard Rice Engineers, Inc. was selected for the engineering/hydrogeological professional services for the oversight of the construction of the wells with a budget of $108,919. Castle Rock Water staff will design any facility additions and modifications. The appurtenant well facility construction documents will be sent out for bid once the design of the facility is complete. The preliminary total estimated cost of these facilities including the drilling is $1,624,607.
A Request for Proposal (RFP) was sent out to six qualified well drillers to provide proposals for the construction of the two Wells, CR-15R and CR-16R. Castle Rock Water received three proposals and three no-bids. All of the bids were determined to be complete. The total bid included optional items.
The results are shown in the following table:
|
Consultant |
Base Bid |
Optional Items |
Total Bid Amount |
|
Hydro Resources, Inc. |
$1,082,460 |
$501,265 |
$1,583,725 |
|
Layne Christensen Company |
$1,464,140 |
$436,157 |
$1,900,297 |
|
Stewart Brothers |
$1,822,305 |
$411,940 |
$2,234,245 |
|
Boart Longyear |
--- |
--- |
Opted Not to Bid |
|
National Drilling |
--- |
--- |
Opted Not to Bid |
|
Yellow Jacket Drilling |
--- |
--- |
Opted Not to Bid |
Based on the bids, staff selected options deemed to provide the best overall value. Bids from the bidders are compared below based on the selected options.
|
Consultant |
Base Bid |
Selected Optional Items |
Total Bid Amount |
|
Hydro Resources-Rocky Mountain, Inc. |
$1,082,460 |
$159,075 |
$1,241,535 |
|
Layne Christensen Company |
$1,464,140 |
$389,099 |
$1,853,239 |
|
Stewart Brothers |
$1,822,305 |
$133,060 |
$1,955,365 |
Hydro’s proposal addressed the full scope of work and alternative optional scope items, and staff believes the proposal amount to be a good value to the Town based on previous similar scopes of work. The work will include the drilling and construction of a Dawson Aquifer well and a Denver Aquifer well. The staff recommended contract amount includes the base bid amount of $1,082,460 plus $159,075 of the optional items for a total of $1,241,535. The optional items include glass bead filter pack, nuclear magnetic resonance logging and epoxy coating of the drop pipe. These items will help to reduce bio-fouling in the wells and maintain capacity. Hydro has provided well rehabilitation and construction services to the Town on previous projects. Staff is confident of Hydro’s capabilities to complete this project within budget and on schedule, and we recommend award of the construction service agreement to Hydro for the base bid and the optional items.
The contract requires substantial completion by July 1, 2018 to help meet summer demands. Staff plans to submit the new source water permit to the Colorado Department of Public Health and Environment (CDPHE) with the completion of wells to have approval at time of project completion. The application can be submitted once water quality data is back.
Budget Impact
Funding for this project is available in the approved 2018 Budget. Staff is requesting that Town Council approve the project so that the Notice to Award can be issued on February 7, 2018. The approved 2018 account budget is $2,000,000 (Account No. 210-4275-442.76-53). The Hydro proposal fee is $1,241,535. Staff requests an additional $124,153 (Town-managed 10 percent contingency) be authorized for a total project authorization of $1,365,688. The proposal fee includes some of the optional items including glass beads, Nuclear magnetic resonance logging and epoxy coating of drop pipe that will help reduce bio-fouling in the well and maintain long-term capacity of the wells.
Project Account Amount Contingency Total
210-4275-442.76-53 $1,241,535 $124,153 $1,365,688
Well Redrills
Staff Recommendation
Staff recommends Town Council approval of the services agreement between the Town of Castle Rock and Hydro Resources - Rocky Mountain, Inc. for the construction of Wells CR-15R and CR-16R in the amount of $1,241,535 plus a 10 percent Town-managed contingency of $124,153 for a total authorization $1,365,688.
Proposed Motion
“I move to approve the Resolution as introduced by title.”
Attachments
Attachment A: Resolution
Exhibit 1: Contract
Attachment B: Location map