To: Honorable Mayor and Members of Town Council
From: Mark Marlowe, P.E., Director of Castle Rock Water
Matt Benak, P.E., Water Resources Manager
Heather Justus, PG, Water Resources Project Manager
Title
Resolution Approving a Construction Contract with Applied Ingenuity LCC for the Denver Basin Wells Rehabilitation and Pumping Equipment Replacement Project
Body
________________________________________________________________________________
Executive Summary
The purpose of the resolution (see Attachment A) is to request Council approval of a Construction Contract (see Exhibit 1) with Applied Ingenuity, LLC for the Denver Basin Wells Rehabilitation and Equipment Replacement Project. In 2016, Castle Rock Water started a planned well rehabilitation program. This program is designed to help maintain water production yields from our well assets and to reduce the likelihood of emergency well failures. The program targets wells that are showing declines in well yield and/or have been identified as equipped with older pumping equipment. This year we are targeting nine Denver Basin wells for planned rehabilitation and equipment replacement over the winter of 2018-2019. Castle Rock Water recommends approval of a construction contract with Applied Ingenuity in the amount of $1,342,383.00 plus a five percent Town-managed contingency in the amount of $67,119; for a total project cost of $1,409,502.00.
Discussion
It is important to keep our existing infrastructure operating in an efficient manner to ensure that peak water demands during the summer months can be met, without resorting to curtailment measures due to well failures. In order to do this, the Water Resources Division has established a yearly 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 biofouling and wells with older pumping equipment. Replacing older pumping equipment often provides the opportunity to resize equipment so that better well efficiency is achieved, potentially reducing the long-term costs to operate the wells. Castle Rock staff has decided that it is wise to replace the existing equipment of the top one-third of the highest producing wells with stainless steel drop pipe. Using stainless steel increases longevity and efficiency of the wells. It will also help slow down the growth of iron bacteria in the wells and help reduce the overall costs of rehabilitation of the wells. The following wells are identified for the 2018 Denver Basin Rehabilitation and Pumping Equipment Project: Arapahoe Aquifer Wells CR-110, CR-31R, and CR-43; Denver Aquifer Wells CR-110, CR-148 and CR-174; and Dawson Aquifer Wells CR-152, CR-168 and CR-170. The combined daily production from the wells is 2.6 million gallons per day.
Castle Rock Water sent out a Request for Proposals to four qualified contractors and all responded. The following table is a summary of the bids:
|
Applied Ingenuity |
Colorado Pump |
Hydro Resources |
Layne |
|
$1,659,144.00 |
$1,854,262.00 |
$1,979,984.00 |
$2,060,348.00 |
The price sheet did include optional bid items which some will not be included in the scope of work.
Applied Ingenuity’s proposal addressed the full scope of work and alternative scope items. Staff believes the proposal amount to be a good value to the Town based on previous similar projects. Applied Ingenuity has provided excellent service to the Town including supplying temporary downhole pumps at no additional cost while permanent equipment was delayed in delivery due to complications from the supplier. The temporary pumps helped the Town to continue to provide high quality service during higher demand seasons and providing services for all of the 2018 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, LLC.
Budget Impact
Funding for the project is available in the approved 2018 and 2019 Budgets. A third quarter budget amendment will be necessary to make the funds available for the project. 2019 budget funds will be brought into 2018 for this purpose as the scope of work will be completed over the winter of 2018 - 2019. Funding for the project will come from Accounts Repair and Maintenance -Wells 210-4250-442.40-37 ($1,165,303.60 budgeted) and Well Rehab and Replace 210-4275-442.77-48 ($200,000 budgeted). A budget transfer from the Tank Demo account 210-4275-442.77-50 of ($100,000) will be completed to the Repair and Maintenance - Wells account 210-4250-442.40-37. 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’s proposed fee is $1,342,383.00. Staff requests an additional $67,119 contingency be authorized for a total authorization of $1,409,502.00.
|
Project Account |
Amount |
Contingency |
Total |
|
210-4275-442.40-37 - Repair & Maint - Wells |
$1,209,502 |
|
$1,209,502 |
|
210-4275-442.77-48 - Well Rehab and Replace |
$132,881 |
$67,119 |
$200,000 |
|
TOTALS |
$1,342,383 |
$67,119 |
$1,409,502 |
Staff Recommendation
Staff recommends Town Council approval of the construction contract with Applied Ingenuity for the Denver Basin Wells Rehabilitation and Pumping Equipment Replacement. Castle Rock Water Commission was informed of the project at their September 29, 2018 meeting and unanimously recommended approval.
Proposed Motion
“I move to approve the resolution as introduced by title.”
Attachments
Attachment A: Resolution
Exhibit 1: Construction contract
Attachment C: Location maps