To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Mark Marlowe, P.E., Director of Castle Rock Water
Title
Resolution Approving a Construction Contract between the Town of Castle Rock and T. Lowell Construction, Inc., for the Ray Waterman Well Facility Project [located near Valley View Dr. and Autumn Sage St.]
Body
________________________________________________________________________________
Executive Summary
Castle Rock Water (CRW) is seeking Town Council approval of a resolution approving a construction contract (Exhibit 1) with T. Lowell Construction, Inc. (T. Lowell) for the Ray Waterman Well Facility Project. This facility is for the new Aquifer Storage and Recovery (ASR) wells, CR-232 and CR-233 that have been drilled near the Ray Waterman Regional Water Treatment Center (RWRWTC) (Attachment B). This project consists of constructing a new metering and control facility for the newly drilled wells. T. Lowell submitted the lowest responsive bid for a total construction cost of $659,000. Staff also requests approval for a 10% Town-managed contingency of $65,900, for a total project authorization of $724,900.
Notification and Outreach Efforts
CRW staff held an open house on February 20, 2020, at the RWRWTC for residents to discuss the project. Notification postcards were sent out to residents near the well sites prior to commencing drilling activities. In addition, the project information is posted on the Town's Development Activity map as one of the Water Projects and is updated. Another notice of construction letter will be sent to local residents describing the current phase of the project.
History of Past Town Council, Boards & Commissions, or Other Discussions
Resolution 2020-114, Approving the Amendment to the ASR and Downhole Pumping Equipment for Wells CR-232 and CR-233 Contract with Hydro Resources - Rocky Mountain Inc. for the Downhole Power Generation Pilot Agreement, was approved by Town Council on November 17, 2020; 6 for and 0 against.
Resolution 2020-114 was presented to Castle Rock Water Commission (Commission) on October 28, 2020, and the Commission unanimously recommended approval of the resolution.
Resolution 2020-029, Approving a Pumping, Aquifer Storage and Recovery Equipment, and Downhole Power Generation Equipment Installation Construction Contract with Hydro Resources - Rocky Mountain Inc. for Well CR-232 and CR-233, was approved by Town Council on March 3, 2020; 7 for and 0 against.
Resolution 2020-029 was presented to the Commission on February 26, 2020, and the Commission voted unanimously (5-0) to recommend approval to Town Council.
Resolution 2019-130, Approving a Construction Contract with Hydro Resources - Rocky Mountain Inc. for Wells CR-232 and CR-233, was approved by Town Council on December 17, 2019; 6 for and 0 against.
Resolution 2019-130 was presented to the Commission on December 11, 2019, and the Commission voted unanimously to recommend Council approval of the resolution.
Discussion
Based on the Water Resources Supply and Demand Model, high population growth trend, aging infrastructure, and the need for ASR near RWRWTC, it is necessary to keep pace with meeting our customers’ water demands by completing this project. With the variability of WISE deliveries, a storage option is needed when WISE supply is higher than demand. One of the solutions is ASR, which is the ability to store water in the aquifer and recover the water through pumping when needed. The design of an ASR well is slightly modified to take into consideration the water that will be delivered into the aquifer through the well which will cause the water level in the well to increase. Attachment B is a map of the well and well facilities locations. This project will construct the metering, control facilities, and yard piping for the newly constructed wells.
Town Council approved the Water Service Intergovernmental Agreement (IGA) with Dominion Water and Sanitation District (Dominion) on September 20, 2016 for shared use of infrastructure. As part of the Water Service IGA, Dominion reimbursed the Town for all costs associated with the design and construction of the Founders Well Facility infrastructure and will pay the costs associated with the ASR equipment for the two wells included in this project as part of the Infrastructure Fee.
The request for bids for the project was sent to six qualified contractors. Bids were received by all six contractors, as summarized in the table below. The Engineer’s estimate was $685,883. The low bid was received by T. Lowell and is considered a responsive bid.
|
Consultant |
Bid Amount |
|
T. Lowell |
$659,000 |
|
Moltz |
$669,686 |
|
RME |
$687,212 |
|
Velocity |
$691,643 |
|
Global |
$697,291 |
|
RN |
$749,306 |
Assuming approval of this contract, the total project costs for these new wells are provided in the table below.
|
Consultant/ Contractor |
Duties |
Proposed Budget^ or Staff Estimated Budget* |
|
Leonard Rice Engineers, Inc. |
Design of wells and oversight of drilling |
$108,307 |
|
Hydro Resources, Rocky Mountain Inc. |
Drilling, completion and testing of wells |
$2,931,416 |
|
Hydro Resources, Rocky Mountain Inc. |
Pumping equipment installation |
$2,293,335 |
|
Facility Design Consultant |
Design well facility |
$151,940 |
|
T. Lowell Construction |
Construction of the facility and yard piping |
$724,900 |
|
PSI |
Construction Phase Engineering Support |
$22,400 |
|
Leonard Rice Engineers, Inc. |
ASR, power generation, reporting and oversight |
$35,000* |
|
Dominion |
Estimate Cost Share |
$778,200* |
|
Estimated Total Cost |
|
$5,489,098* |
* = Staff Estimated Budget
The facility is anticipated to be ready for production in August of 2021. The ASR portion of the project will require additional testing that cannot begin until the peak demand season is over. The ASR testing will begin in the fall of 2021 and take serval months to complete.
Once complete, this project is anticipated to add approximately 1.0 to 1.2 million gallons per day (MGD) of additional supply to CRW’s water supply portfolio. An estimated 900 acre feet per year (AF/yr) of ASR storage will also be provided by the project.
Budget Impact
Funding for this project is available in the approved 2021 Budget. The project will be funded from the New Wells Account (Account No. 210-4275-442-75-39). T. Lowell’s bid is $659,000. Staff requests an additional $65,900 (Town-managed 10% contingency) be authorized for a total project authorization of $724,900.
Project Account Amount Contingency Total
210-4275-442-75-39 $659,000 $65,900 $724,900
Staff Recommendation
Staff recommends Town Council approval of the resolution approving the construction contract between the Town of Castle Rock and T. Lowell Construction, Inc. for the construction for the Ray Waterman Well Facility Project in the amount of $659,000 plus a 10% Town-managed contingency of $65,900 for a total authorization of $724,900.
Proposed Motion
“I move to approve the Resolution as introduced by title.”
Attachments
Attachment A: Resolution
Exhibit 1: Construction Contract
Attachment B: Map of the Project