To: Honorable Mayor and Members of Town Council
From: Mark Marlowe, P.E., Director of Castle Rock Water
Matt Benak, P.E., Water Resources Program Manager
Lauren Moore, Water Resources Program Analyst
Title
Resolution Approving the First Amendment to the Water Infrastructure Design and Construction Cost Sharing Intergovernmental Agreement (Plum Creek Raw Water Return Pipeline / Eastern Regional Pipeline Project
Body
________________________________________________________________________________
Executive Summary
The purpose of this memorandum is to request Town Council approval by Resolution of an amendment to Resolution 2018-048 (see Attachment A), the Water Infrastructure Design and Construction Cost Sharing Intergovernmental Agreement between the Town of Castle Rock and Dominion Water and Sanitation District for the Plum Creek Raw Water Return Pipeline / Eastern Regional Pipeline Project (IGA) (see Exhibit 1).
The Plum Creek Raw Water Return Pipeline will return reusable and renewable water captured at our Plum Creek Diversion in Sedalia and transfer it back to the Town for reuse at our Plum Creek Water Purification Facility. The corridor planned for this pipeline is the same corridor that Dominion Water and Sanitation District (Dominion) plans to use for their Eastern Regional Pipeline Project to convey their WISE water and other finished supplies. The design and construction of this pipeline is being managed by Dominion. As the construction phase is well underway, Dominion is firming up estimated final project costs.
Key terms of the amendment are as follows:
• Exhibit C (Construction Schedule) has been updated
• Exhibit D (Estimated Costs) has been finalized including the design elements of Work Package C (that portion of the work borne solely by the Town);
• Dominion will transfer over easements to the Town in an entire package 60 days after substantial completion
Staff has reviewed the amendment to this IGA and both parties recommend that Council approve the amendment to this agreement.
History of Past Town Council, Boards & Commissions, or Other Discussions
On April 16, 2018, the Town and Dominion attended a Location and Extents hearing before the Douglas County Planning Commissioners. The Commissioners unanimously approved the location and extents submittal by the Town and Dominion.
On April 25, 2018, the Castle Rock Water Commission unanimously recommended that Council approve the agreement.
On May 15, 2018, Town Council unanimously approved Resolution 2018-048, a Cost Share IGA with Dominion for the Plum Creek Raw Water Return Pipeline / Eastern Regional Pipeline Project for up to $16,279,928 for Castle Rock’s share of estimated costs.
On March 20, 2019, the Town approved Work Package C and funded its share of work package and construction costs for $13,180,834.73 into the escrow account.
Discussion
On May 15, 2018, the Town entered into a Cost Sharing IGA with Dominion Water & Sanitation District (Dominion) for the Design and Construction of the Plum Creek Raw Water Return Pipeline jointly with Dominion’s Eastern Regional Pipeline Project. The Town’s pipeline will extend from our recently acquired Plum Creek Diversion in Sedalia approximately six miles back to Castle Rock, eventually connecting this renewable water source to our Plum Creek Water Purification Facility. As the design phase of this project is wrapping up, construction activities began the last week of February, with an anticipated completion date of May 2020.
Through this IGA, Dominion’s design/build team is responsible for design and construction of these pipelines. Upon completion of construction and installation of the Project, Dominion shall be the sole owner of the Dominion Infrastructure and the Town shall be the sole owner of the Castle Rock Water (CRW) Infrastructure and Dominion shall assign to CRW interests in the Project easements sufficient to allow CRW the ability to maintain, repair, replace and expand the CRW Infrastructure.
A key term of the IGA and relevant to this amendment is that within ten days after the effective date that Dominion has approved the guaranteed maximum price (GMP), the Town will deposit the remaining estimated project costs. At project completion, final costs will be settled, and the Town will be responsible for the Town’s proportionate share. This may include a refund to the Town if project costs are less than the GMP.
Budget Impact
The Dominion Pipeline IGA impacts the Town’s Capital Improvement Project budget. To date the Town has paid $549,425 from the project design escrow account for design costs, $431,980 in easement acquisition and support services, and $1,192,256 from the project construction escrow account for construction costs. The latest estimated project costs for the Town’s responsibility in support of this IGA are $685,505 in design costs, $13,592,604 in construction costs, and $353,125 for easement acquisition. Easement acquisition support services have totaled $82,027 so far, and there may be an additional $25,000 remaining towards these services. An additional one percent (1%) of actual final construction costs $135,926.04 will be paid to Dominion for their project administration work (currently estimated at $135,926). The table below summarizes all of the project costs.
|
Summary of Design, Easement Acquisition and Construction Costs (to date) |
|
|
Design Phase |
Easement Acquisition |
EA Support* |
Construction Phase |
Construction Admin. |
TOTALS |
|
Spent |
$549,425 |
$349,053.29 |
$82,926.71 |
$1,192,256.35 |
-- |
$2,173,661.35 |
|
Authorized |
$1,092,078 |
-- |
-- |
$14,095,772.00 |
$142,096 |
$15,187,850.00 |
|
New Estimate |
$685,505 |
$353,125.00 |
-- |
$13,592,604.00 |
$135,926 |
$14,767,160.00 |
|
*EA Support includes legal (Kutak Rock) and administrative costs (Western States Land Services, Douglas County recording fees) associated with obtaining private easements. |
Funds for the design and construction phases of this project have been deducted from account number 211-4375-443.77-54 (Water Resources Fund - Plum Creek Diversion Structure).
Recommendations
Staff recommends that the amendment to the Water Infrastructure Design and Construction Cost Sharing Intergovernmental Agreement between the Town of Castle Rock and Dominion Water and Sanitation District for the Plum Creek Raw Water Return Pipeline / Eastern Regional Pipeline Project be approved.
Proposed Motion
“I move to approve the Resolution as introduced by title.”
Attachments
Attachment A: Resolution
Exhibit 1: Amended Agreement