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File #: RES 2019-127    Version: 1 Name:
Type: Resolution Status: Passed
File created: 11/15/2019 In control: Town Council
On agenda: 12/3/2019 Final action: 12/3/2019
Title: Resolution Approving a Construction Contract with 53 Corporation, LLC for the McMurdo Gulch - Terrain Channel Improvements
Attachments: 1. Attachment A: Resolution, 2. Exhibit 1: Construction Contract, 3. Attachment B: Map 2019 McMurdo Gulch Improvements_reduced, 4. Presentation

To:                     Honorable Mayor and Members of Town Council

 

From:                     Mark Marlowe, P.E., Director Castle Rock Water

 

Title

Resolution Approving a Construction Contract with 53 Corporation, LLC for the McMurdo Gulch - Terrain Channel Improvements

Body

________________________________________________________________________________

 

Executive Summary

 

The purpose of this memo is to request Town Council authorization of Resolution 2019-__ (see Attachment A) Approving an Agreement for a Construction Contract between the Town of Castle Rock and 53 Corporation LLC for the McMurdo Gulch -Terrain Channel Improvements (see Exhibit 1). The value of this contract agreement is $687,959 plus a 10% Town managed contingency in the amount of $68,796 for a total authorization of $756,755.  This project includes stream channel improvements along McMurdo Gulch from State Highway 86 (SH86) to Valley View Drive (see Attachment B).  Improvements include boulder cascade drop structures, channel bank protection and wetland vegetation plantings.  Construction is scheduled to begin in December and be completed by July 2020.  This project is jointly funded through developer contributions and the Stormwater Enterprise. This project is part of a broader effort to address legacy stormwater needs in the Town. CR Water budgeted $10M in debt to be taken in 2020 to address this need.  Council approved Resolution 2019-119 to allow reimbursement of expenses in 2019 for this project against a potential debt issuance.

 

Notification and Outreach Efforts

 

The project is located within Town owned open space.  Staff will provide notifications via direct mailings to adjacent property owners, news releases and social media postings, as needed.  Project details and updates will be provided on CRgov.com/water.

 

History of Past Town Council, Boards & Commissions, or Other Discussions

 

This project was identified in the Final McMurdo Gulch Major Drainageway Master Plan (Master Plan), adopted by Council through Resolution No. 2006-157 on December 19, 2006.

 

This project was presented at the October 23, 2019 Castle Rock Water Commission meeting as part of a broad effort and plan to address legacy Stormwater project needs. This project was presented under consideration of a reimbursement resolution that would allow reimbursement of expenses for this project between November 5, 2019 and closing on Stormwater debt. Commission unanimously recommended Council approval of the reimbursement resolution.

 

This project was presented at the November 5, 2019 Council meeting under Resolution 2019-119 as part of a broad effort and plan to address legacy Stormwater project needs. Resolution 2019-119 was unanimously approved by Council to allow reimbursement of expenses for this project between November 5, 2019 and closing on Stormwater debt.

 

Castle Rock Water Commission will be provided with an update at the scheduled December 11, 2019 meeting. 

 

Discussion

 

This project is required to mitigate development impacts to the drainageway and provide a sustainable channel system for water quality and flood control.  The improvements will reduce channel erosion, enhance water quality and protect adjacent property from loss during flooding. 

Partial improvements were completed in 2016 along McMurdo Gulch between SH86 and Valley View Drive in conjunction with the adjacent Terrain Development.  Due to permitting constraints, the channel was not fully stabilized in accordance with the recommendations set for the Final McMurdo Gulch Major Drainageway Master Plan.  Although the interim improvements supported the development under current stream conditions, these project improvements are needed to address projected impacts from adjacent and upstream development.  Through a Subdivision Improvement Agreement (SIA), the developer (SLV Castle Oaks) is obligated to provide cash in lieu, in the amount of $766,000 for design and construction of the remaining improvements.  The design and construction services cost totaled $161,986 leaving a remaining balance of $604,014 to be applied to construction of this project. The remaining funds needed to complete this project will be funded through the Stormwater Enterprise. 

 

Following approval of the design documents, the project was advertised for public bid from qualified contractors on October 17, 2019 on the Town’s Rocky Mountain Bid Net site.  A mandatory pre-bid conference was held on Wednesday, October 23, 2019.  Bids were received on Thursday, November 7, 2019.

 

Bids were received from three contractors.

                     The bid from Concrete Express, LLC, located in Denver, CO was $1,065,362.60.

                     The bid from Frontier Environmental Services, located in Arvada, CO was $898,630.95.

                     The bid from 53 Corporation, LLC, located in Sedalia, CO was $692,959.00.

                     The Engineer’s estimate for the project was $801,026.00.

 

Each contractor was determined to be equally qualified to perform the stream reclamation work.

 

A second McMurdo Gulch project (McMurdo Gulch - Stream Reclamation Project Priority 1 Improvements) was also bid at the same time with this project.  Due to the close geographical proximity and similar nature of project construction, it was believed there may be fiscal benefit to the Town by potentially awarding both projects to either one contractor or two different contractors.  Each contractor was provided an opportunity to include with their bid, a Bid Schedule Deduct on a Town approved form included in Addendum #1 to the bid document; applied only if one contractor was awarded both projects.

                     The Bid Schedule Deduct from Concrete Express, LLC was $6,000.

                     The Bid Schedule Deduct from Frontier Environmental Services was $10,000.

                     The Bid Schedule Deduct from 53 Corporation, LLC was $5,000.

 

Following the bid opening, it was found that 53 Corporation, LLC was the low bidder for both McMurdo Gulch projects; thus, the Bid Schedule Deduct was applied as a deduction to 53 Corporation’s bid price.

 

Budget Impact

 

Funds for this construction will be charged to the stormwater account below, which has a remaining budget of $640,153 in 2019.  Additional funds will be appropriated in a future budget amendment.  Sufficient funds are available in the stormwater capital reserve fund balance for this project.  Developer contributions for construction were received in September 2018 of which the remaining balance of $604,014 will be applied to this project.

 

Fund Description

Account Number

Amount

Contingency

Total

McMurdo Gulch Stream  Stabilization

212-4475-444.75-51

$687,959

$68,796

$756,755

 

Staff Recommendation

 

Staff recommends authorization of a resolution awarding the Agreement for a Construction Contract between the Town of Castle Rock and 53 Corporation LLC for the McMurdo Gulch - Terrain Channel Improvements in the amount of $687,959 plus a Town managed 10% contingency in the amount of $68,796 for a total authorization of $756,755.

 

Proposed Motion

 

"I move to approve the resolution as introduced by title.”

 

Attachments

 

Attachment A: Resolution

Exhibit 1: Construction Contract

Attachment B: Project Site Map