To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Mark Marlowe, P.E., Director of Castle Rock Water
Matt Benak, P.E., Water Resources Manager
Heather Justus, P.G., Water Resources Project Manager
Title
Resolution Approving a Service Agreement Between the Town of Castle Rock and Hydro Resources-Rocky Mountain, Inc., for ASR Testing and the Installation of Valves for Wells CR-223 and CR-224
Body
________________________________________________________________________________
Executive Summary
In September 2020, Castle Rock Water (CRW) received the Aquifer Storage and Recovery (ASR) Permit Authorization for wells CR-223 and CR-224 from the United States Environmental Protection Agency (EPA). This was an accumulation of 12 years of work from staff and contractors with six of those years in the application process with EPA. As part of the permit requirements, a caliper log of the interior well and well video need to be conducted. In addition, the BASKI Flow Control Valve in Well CR-223, that allows recharge into the well, failed in October of 2019. With the question of the functionality of the BASKI Flow Control Valve, staff decided to equip the well with standard pumping equipment for the 2020 Demand Season.
CRW staff wanted to take the time to research other available flow control valves and to determine if the original was salvageable. It was determined that the valve was completely plugged and unusable. This is the second failure that CRW has experienced with the BASKI Valve with only the pilot testing use on the valves. The first failure occurred in 2015 with the valve equipped in Well CR-224 with a broken fluid line (Baski did replace the valve under the warranty). In 2020, Staff requested quotes from both Colorado Pump Services and Supply Co. (Co Pump) and Hydro Resources - Rocky Mountain Region (Hydro) to complete the work necessary to meet the requirements of the ASR EPA Permit and install a new flow control valve in CR-223 and test the valve in CR-224.
CRW staff determined that the quote that Hydro provided was the best value for the Town and that Hydro would be able to complete the permit requirements. The scope includes completing an internal caliper test and video surveys on both CR-223 and CR-224. And on CR-224, testing of the existing BASKI Valve and well rehabilitation is needed to complete the requirements needed for the ASR EPA Permit. In addition, staff requested that Hydro provide a quote in case the flow control valve in CR-224 failed the testing. Staff is requesting total authorization of $432,495 which includes the base quote for $261,900 plus a 5% contingency of $13,095 and an additional amount of $157,500 to be used only in the event that the current BASKI Flow Control Valve in CR-224 fails testing inspection.
Notification and Outreach Efforts
This is a remote site, with no nearby neighbors; therefore, it will only be included on the Town project website after the Services Agreement is in place.
History of Past Town Council, Boards & Commissions, or Other Discussions
The History of the project is included as Attachment B.
The Castle Rock Water Commission was informed of the project at their February 24, 2021 meeting and voted 7-0 to recommend Council approval of the resolution.
Discussion
In October 2017, CRW submitted the ASR Pilot Testing Program report for wells CR-223 and CR-224. Since then CRW has actively worked with the EPA team to obtain an ASR permit. The Final ASR permit requires additional testing before the final approval for recharge commencement would be granted. The additional testing includes caliper logging and video survey with the EPA approving the proposed testing protocol.
In order to complete the testing CR-224 needs to have a rehabilitation performed. Colorado Pump is already under contract to complete the rehabilitation for CR-223 which is also required to complete the testing on CR-223. Staff requested proposals from Colorado Pump and Hydro for the rehabilitation work for Well CR-224 and the ASR testing for both wells. Hydro’s proposal was the lower bid and provides the services needed.
CRW is working with Hydro on new ASR wells at Ray Waterman which will also need to have the testing completed. Staff interviewed Hydro on their knowledge base for the testing and found that they have extensive experience in performing the tests in Texas. Using the EPA guidance documents, Hydro developed a proposal to complete the required testing. The EPA team approved the proposed testing protocol. The proposed scope amount is below staff estimates and is fair and reasonable for the scope of work provided.
In addition, the BASKI Flow Control Valve failed in CR-223 in October 2019. To meet the 2020 Demand Season, staff decided to not install a flow control valve into the pumping string for Well CR-223 until we had a better understanding of the ASR EPA Final Permit requirements, and we could determine the source of failure for the flow control valve. The cause of failure was not determined other than catastrophic failure that lead to complete plugging of the valve and failure of the pump and motor. Staff requested that Leonard Rice Engineers, Inc. (LRE) complete an evaluation of available flow control valves on the market and to suggest a replacement valve. LRE recommended the R3 Flow Control Valve which is quoted.
The tasks include the caliper logging and video surveys for both wells. For Well 223, the additional tasks include the installation of the R3 valve. For Well CR-224 a full well rehabilitation is needed in order to complete the required ASR Permitting tests and the testing inspection for the existing BASKI Flow Control Valve. In addition, staff requested an optional quote for the installation of an R3 Flow Control Valve in CR-224 if the BASKI Flow Control Valve fails testing inspection.
Budget Impact
The Services Agreement with Hydro is attached. The funding for the contract will come from Water Resources Account CIP - Aquifer Storage and Recovery 211-4375-443.75-84. The current balance is $0 for 2021 and the balance for 2020 is committed and will need to be carried forward to meet prior commitments. A budget transfer from Water Resources Account - CIP- Operations and Maintenance will be completed for the total approved amounts ($432,495). Staff is requesting a total authorization of $432,495 which includes the base quote for $261,900 plus a 5% contingency of $13,095 and an additional amount of $157,500 to be used only in the event that the current BASKI Flow Control Valve in CR-224 fails the testing inspection.
Project Amount Contingency Total Amount
211-4375-443.75-84 $261,900.00 + $13,095.00 $432,495.00
Aquifer Storage & Recovery $157,500.00 (conditional)
Staff Recommendation
Staff recommends Town Council approval for this service agreement, which will help the Town complete the approval process from EPA for the Aquifer Storage and Recovery permit. This permit will allow CRW to store water in the Denver and Arapahoe aquifers during time of plenty for use when needed.
Proposed Motion
“I move to approve the Resolution as introduced by title.”
Attachments
Attachment A: Resolution
Exhibit 1: Service Agreement
Attachment B: ASR Project History