To: Honorable Mayor and Members of Town Council
From: Mark Marlowe, P.E., Director of Castle Rock Water
Tim Friday, P.E., Assistant Director of Castle Rock Water
Through: David L. Corliss, Town Manager
Title
Resolution Approving a Construction Contract with Golden Triangle Construction Inc. to Construct the Castle Rock Water Administration and Customer Service Building Project
Body
________________________________________________________________________________
Executive Summary
Castle Rock Water staff requests approval of a Resolution (see Attachment A) approving a Construction Contract (see Exhibit 1) with Golden Triangle Construction Inc. (GTC) for constructing Castle Rock Water’s Administration and Customer Service Building Project at a contract amount of $3,944,200.
A competitive bidding process was used to obtain thirteen (13) bids from qualified contractors. Each bid was evaluated for completeness and to ensure that the bid met all the requirements identified in the invitation to bid and specifications. Base bids ranged from $3,677,700 (bid from GTC) to $4,380,204 (see Attachment B for a bid tabulation). In addition to the base bid, 3 bid alternates were evaluated that include: 1) minor improvements to the existing building at 175 Kellogg Court to convert from administration/customer service to engineering building; 2) a roof-mounted photovoltaic solar array for renewable energy generation; and 3) landscaping and irrigation. Adding these three alternates to the base bid results in a total contract amount with GTC of $3,944,200, which represents the lowest bid of the thirteen received.
Interviews were conducted with the three lowest bidders: GTC, Fransen Pittman and Buildings By Design. The purpose of the interviews with each contractor team was to further evaluate the information in each bid as well get to know each team. Based on both the information submitted with the bids and face-to-face interviews, CR Water recommends award of the contract to GTC in the amount of $3,944,200. This amount includes the base bid referenced above plus bid alternates 1 through 3. In addition to the contract amount, CR Water requests authorization of an approximate 3% contingency in the amount of $120,000 for a total authorization request of $4,064,200. The amended 2020 budget for this project is $4,173,395, of which $4,113,126 remains.
Construction is expected to be completed by the end of 2021, with substantial completion of the new building in September 2021 followed by final completion in November 2021. This project has been coordinated with town-wide facilities space planning and is part of the overall site development planned for the Castle Rock Water Campus. The total cost of this project, including design work completed in 2018 and 2019, plus this construction contract and estimated costs for furniture, permits, system development fees, and electric and gas utilities, is approximately $4,908,000.
History of Past Town Council, Boards & Commissions, or Other Discussions
On April 2, 2019, Town Council approved a resolution approving a services agreement with HB&A Inc. in the amount of $251,057 plus a Town-managed contingency of $12,553 for design of this project.
This project was presented to the Water Commission on February 26, 2020. The Commission unanimously recommended that this project be approved by Town Council.
On March 17, 2020, Town Council approved a resolution approving a construction services agreement with Iron Mike Construction LLC in the amount of $3,892,312 plus a Town-managed contingency of $116,769 for a total authorization request of $4,009,081. This project only included bid alternate 2 (photovoltaic solar array). Several additional scope items have also been added to the project since this original bid, including an oil and grease interceptor and renovation of the existing administration and customer service building. The project was subsequently cancelled due to financial uncertainty associated with the pandemic.
On September 26, 2020, the project was again presented to the Water Commission who supported moving forward with the project provided the Town received reasonable bids that fit the budget and the project would be awarded to the lowest responsive bidder.
Discussion
Castle Rock Water was created as a separate department from Public Works in 2002 and purchased the property at 175 Kellogg Court in August 2002 to establish a headquarters and home for this new department. The 9.8-acre property was formerly used as a lumber yard and included a showroom building and a metal warehouse for storing lumber. These buildings were constructed in 1998/99. The existing showroom building was modified in 2002/2003 to accommodate Customer Service and Administrative staff, and several modular buildings were installed to temporarily accommodate Operations and Engineering staff. Since 2002, the department has grown from 44 full time equivalents (FTEs) to a current staff of 96 FTEs, and with continued growth in the Town, it is expected that the Department eventually will employ approximately 110 to 120 FTEs.
A facilities site assessment was conducted in early 2013 to evaluate options to accommodate existing staff as well as plan for future staff. The conclusion and recommendation of that assessment pointed toward developing the Kellogg property as the permanent home for Castle Rock Water. In addition, space deficiencies were identified for each division within the department. The Operations and Maintenance division had the largest space deficiency and, subsequently, the Operations and Maintenance Building was designed in 2014 and built in 2015. This 20,000 square foot facility is sized to accommodate 44 personnel and includes two service bays, an employee break room, one small conference room and a meeting room sized to accommodate 120 people.
The Administration and Customer Service Division has the next largest space deficiency and a new building has been planned to provide adequate space such that all staff can be housed in permanent buildings. The facilities site assessment completed in 2013 recommended the following:
• Build a new, more inviting and accessible Administration and Customer Service building north of the existing Administration facility or as an addition to the facility with ground level access for visitors.
• Move the Engineering, Water Resources and Stormwater Divisions into the existing Administration facility and remove all the modular buildings.
• Make appropriate site improvements to accommodate customer access and parking, and employee parking.
In 2019, Castle Rock Water retained HB&A to develop construction documents for a new Administration and Customer Service Building (see Attachment C for Overall Site Plan, Floor Plan and Architectural Renderings). The result of that work yielded bid documents consisting of drawings and specifications. Using these bid documents, a competitive bidding process was used to obtain bids from qualified general contractors. Base bids ranged from $3,677,700 to $4,380,204. All bids met the contract requirements. In addition to the base bid, 3 bid alternates were evaluated thatinclude: 1) minor improvements to the existing building at 175 Kellogg Court to convert from administration/customer service to engineering building; 2) a roof-mounted photovoltaic solar array for renewable energy generation; and 3) landscaping and irrigation. The CR Water team then interviewed three firms who submitted the three lowest bids in order to get to know each team and discuss each contractor’s approach to the project, costs and schedule. Based on the bid proposals and the face-to-face interviews, it is apparent that GTC has a well-defined project approach. Their qualified team of professionals presented a sound approach and staff is confident in their abilities to deliver a successful project. Reference checks on recent, similar projects completed by GTC yielded positive feedback on GTC’s performance. Therefore, CR Water recommends award of this project to Golden Triangle Construction Inc. in the amount of $3,944,200.
Funding for this project was included in the 2020 budget line item “Admin/Cust Svc Building” and split proportionally among CR Water’s four enterprise funds. Construction is expected to begin in March 2021 and be completed by the November 2021. GTC will use the months of November 2020 through February 2021 to procure materials and get organized to construct the project after the winter weather has subsided. This project has been coordinated with town-wide facilities space planning.
Budget Impact
Funding for this project was budgeted in the 2020 budget and split among the four enterprise funds as detailed below.
|
Project |
Account Number |
2020 Amended Budget Amount |
This Contract |
Contingency |
Remaining Balance |
|
Admin/Cust. Svc Building |
210-4275-442.77-57 |
$1,795,425 |
$1,696,354 |
$51,611 |
$47,461 |
|
|
211-4375-443.77-57 |
802,827 |
758,890 |
23,089 |
20.848 |
|
|
212-4475-444.77-57 |
823,023 |
777,961 |
23,669 |
21,393 |
|
|
213-4577-445.77-57 |
752,120 |
710,996 |
21,632 |
19,493 |
|
Total |
$4,173,395 |
$3,944,201 |
$120,001 |
$109,195 |
Staff Recommendation
Staff recommends approval of the agreement between the Town of Castle Rock and Golden Triangle Construction Inc. in the amount of $3,944,201 plus a Town-managed contingency of $120,001 for a total cost not to exceed $4,064,202 for construction of Castle Rock Water’s Administration and Customer Service Building.
Proposed Motion
“I move to approve the Resolution as introduced by title.”
Attachments
Attachment A: Resolution
Exhibit 1: Contract
Attachment B: Bid Tabulation
Attachment C: Overall Site Plan, Floor Plan and Architectural Renderings