To: Honorable Mayor and Members of Town Council
From: Mark Marlowe, P.E., Director of Castle Rock Water
Jeanne Stevens, P.E., Engineering Manager
Title
Resolution Approving the Second Amendment to Plum Creek Water Purification Facility (PCWPF) Advanced Treatment Project Construction Agreement with Garney Companies, Inc. for Work Package Two and Establishing the Final GMP
Body
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Executive Summary
Castle Rock Water is seeking Town Council approval of a Resolution (Attachment A) awarding a Second Amendment to the Plum Creek Water Purification Facility (PCWPF) Advanced Treatment Project Construction Agreement (Exhibit 1) with Garney Companies, Inc. (Garney). The amount of the contract amendment is $18,202,567 and represents the final work package, Work Package #2 (WP#2). WP#2 includes construction of a new building to house advanced treatment systems purchased with WP#1, and complete installation with startup of all new systems. Included with WP#2 are work items such as electrical, HVAC systems, concrete, masonry, roofing, and all interior piping.
As previously presented to Town Council, the PCWPF Advanced Treatment construction contract will be a Guaranteed Maximum Price Construction Management (GMPCM) arrangement. Construction work is to be awarded in two separate work packages. Garney was selected as the Construction Manager and General Contractor (CM/GC) through a competitive process and has a proven track record in the water and wastewater industry. Town Council approved award of WP#1 to Garney on December 18th, 2018. Garney is currently mobilized onsite and advanced treatment equipment packages approved with WP#1 have been ordered. The new one million gallon raw water blending tank and biologically active carbon filter conversion are scheduled to be completed prior to demand season 2020, with the remaining new facility substantially complete in October 2020.
Amendment One included a WP#1 Final Guaranteed Maximum Price (FGMP) of $10,249,567 and an Initial GMP for WP#2 based on sixty percent design documents, including General Conditions (GCs) and other fees, developed by the Town and the design consultant in cooperation with Garney, of $17,525,510. The FGMP for WP#2 is $18,202,567, an increase due to price increases with material and equipment packages and owner directed changes in scope. Staff recommends executing an amendment to the contract with Garney for WP#2 to construct the associated components of the Project.
History of Past Town Council, Boards & Commissions, or Other Discussions
Project updates were presented at Town Council meetings in June and September, 2018. A Construction Agreement in the amount of $158,840 was awarded to Garney for Pre-Construction Services on August 9, 2018. These services have concluded within budget and included construction cost estimating, constructability reviews, construction scheduling, work sequence planning, value analysis, review of alternate systems, permit assistance, and planning for procurement of long-lead items.
Staff presented the specifics of the WP#1 construction project to the Castle Rock Water Commission at their scheduled meeting held on November 28, 2018, and Town Council at their December 18, 2018 meeting. Town Council approved WP#1 at this meeting. WP#2 was presented to the Castle Rock Water Commission at their April 24, 2019 meeting. 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 at build-out. The Commission voted 6-1-0 to recommend approval to Town Council (Commissioner Todd Warnke abstained from voting).
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 alluvial wells, surface water using existing Town Water Rights, and imported surface water from outside of the Plum Creek Basin.
The PCWPF Advanced Treatment project consists of continuing to treat collected renewable surface water sources from East Plum Creek (EPC). Changes in raw water quality and quantity to the PCWPF are anticipated from new reusable source waters. Castle Rock Water is planning to pump reusable surface water from the Town-owned Plum Creek Reservoir in Sedalia to the PCWPF. This reservoir is a new source of supply, reusable water that Castle Rock owns the rights to reuse to extinction, and is located downstream from the Plum Creek Water Reclamation Authority. A pump station, pipeline and other facilities required to convey new source water to the PCWPF will be completed under separate contract and are not included with these construction phase services.
Council awarded a design services contract to Burns & McDonnell Engineering in December 2017. The PCWPF Advanced Treatment Project was designed to match the current facility water treatment capacity of six million gallons per day (MGD) (not increasing treatment capacity), and be expandable to twelve MGD with a future expansion project. A Basis of Design Report (BDR) was completed that identified a potential multiple barrier treatment approach including pre-ozone, biologically active carbon filtration, ozone disinfection, granular activated carbon adsorption, and UV disinfection. B&McD has designed the multiple barrier approach to treat the new source water for removal of pathogens, organics, regulated drinking water contaminants, and nonregulated contaminants of emerging concern (CECs). A pilot test facility was operated at the Plum Creek Diversion for a six month period in 2018. Treatment technologies tested were ozone, flocculation, sedimentation and biological filtration. Pilot testing results showed good removal rates associated with the regulated and nonregulated contaminants. B&McD has incorporated the results and operational lessons learned from the pilot testing with final designs for this advanced treatment project. The primary goal of the PCWPF Advanced Treatment Project is to meet or exceed requirements of the US EPA Safe Drinking Water Act, as well as additional requirements from the Colorado Department of Public Health and Environment (CDPHE).
Castle Rock Water staff recommended using the Guaranteed Maximum Price Construction Management (GMPCM) project delivery method for design and construction of the PCWPF Advanced Treatment Project. The GMPCM method involves hiring a construction manager/general contractor (CM/GC) for preconstruction services to perform contract administration and to guarantee a maximum price for the complete project. The Owner, CM/GC and Engineer then work collaboratively to design a project that fits a given budget and adjustments to the project design and/or budget are made during the design phase to ensure a successful project that meets the Owner’s expectations regarding cost, quality and schedule. Through a competitive process, Garney was awarded the GMPCM contract for preconstruction services on August 9, 2018. This agreement for preconstruction services was amended on December 18, 2018 with Amendment One to award WP#1, in the amount of $10,249,971.
Amendment One established the Final GMP (FGMP) for WP#1 at $10,249,971 and an Initial GMP for WP#2 based on sixty percent complete design documents of $17,525,510. These costs include General Conditions, overhead and profit, and the cost to do the work. The cost estimate changed as more details were developed between the sixty percent complete documents and final designs. The IGMP was developed with the best costing information available at the time.
Garney advertised for bids from contracting firms in the Daily Journal for WP#2 in February 2019. Bids were received from various firms to subcontract the specialized work items required to complete WP#2. The total cost of all WP#2 work items is $18,202,567 and includes overhead, profit, cost to do the work and a construction contingency of approximately two percent. Amendment Two for WP#2 would establish the Final GMP for WP#2 at $18,202,567. A difference of $677,057 between the IGMP and FGMP for WP#2.
The largest cost add for a subcontract to WP#2 from IGMP to FGMP was the electrical line item. FGMP cost for the electrical is $3,608,017, and this work item was estimated at $2,590,000 (with WP#2 sixty percent IGMP). Garney did receive four subcontract bids for the complete electrical package from a high of $4.2 million, to the low bid of the $3,608,017 (received from Ludvik Electric). Final costs for other work items, such as the Paintings & Coatings subcontract, were below the IGMP (actual cost approximately $270,000 below IGMP).
The following table lists the total contract amount for WP#2 with CM/GC fees.
Total Cost WP#2 with CM/GC Fees
Garney WP#2 Direct Work (includes $399,961 $15,472,459
OH&P for self-perform work by Garney bid
24 hours in advance)
General Conditions 1,055,970
Fee Total 1,556,990
Indirect Costs (bonds, insurance, contingency) 517,148
Total WP#2 Cost $18,202,567
WP#2 construction will include building masonry, roofing, heating/ventilation/air-conditioning, process piping/pumping equipment, chemical feed systems, installing advanced treatment systems (such as ozone, UV, granular activated carbon, and solids handling), electrical & controls, Supervisory Control and Data Acquisition (SCADA) system, and landscaping/final grading work. All other work items, which may not have been directly noted, to deliver a final operational facility in accordance with contract documents are included with WP#1 and WP#2.
As the Construction Management firm, Garney is responsible for schedule, budget, and quality of all work associated with WP#1 and WP#2. Winter construction activities are more susceptible to inclement weather days that may lead to extending the project schedule. To-date, construction of WP#1 work items are on schedule and if authorized by Town Council to proceed with WP#2, Garney will begin ordering building and piping materials that may have long order and delivery times.
Garney is mobilized on-site and has ordered all advanced treatment systems included with WP#1. Garney will have the one MG raw water blending tank and greensand filter converted to a biological active filter (BAC) prior to demand season 2020. The overall project is scheduled to be substantially complete by October 20, 2020. Final completion is scheduled prior to the end of the year 2020. Operations staff will have sufficient time to be trained for operating all advanced treatment systems prior to demand season 2021.
Budget Impact
Current known and estimated costs are shown below:
B&McD Engineering Design $1,528,086
Intuitech, Inc. Six-month pilot testing 174,428
CWCB Grant for 1 MG Tank Construction (200,000)
Garney Companies Pre-Construction Services 158,840
Garney Companies Construction Costs 28,452,538
Burns & McDonnell Construction Engineering 1,340,115
TOTAL $31,454,007
Funding for this project was budgeted in the 2018 budget line item “Advanced Oxidation Facility” (account no. 211-4375-443.77-75) with additional funding budgeted in 2019. There is a current balance remaining in account 211-4375-443.77-75 of $19,625,645. WP#2 total is $18,202,567. There are sufficient funds available in this account.
Staff Recommendation
Staff recommends Town Council approval of the Resolution (Attachment A) approving a Second Amendment to the PCWPF Advanced Treatment Project Construction Agreement with Garney Companies, Inc. for Work Package Two in the amount of $18,202,567.
Proposed Motion
“I move to approve the Resolution as introduced by title.”
Attachments
Attachment A: Resolution
Exhibit 1: Agreement