To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Kristin Read, Assistant Town Manager
Title
Resolution Approving a Construction Contract Between the Town of Castle Rock and 53 Corporation, LLC for the 2021 Police Department Parking Lot Improvements Project
Body
________________________________________________________________________________
Executive Summary
Staff recommends approval of a Resolution (Attachment A) awarding a Construction Contract (Exhibit 1) to 53 Corporation for the 2021 Police Department Parking Lot Improvement Project.
53 Corp. provided the lowest bid in the amount of $941,636. Staff recommends including two alternates - both involving alternate materials - which would deduct $14,770 from the base cost. This would result in a total construction contract of $926,866.
In addition to the contract price with 53 Corp., a 10% Town-managed contingency is requested in the amount of $92,686.60, for a total Council authorization to pay up to $1,019,552.60 to 53 Corp. for the completion of this project. Additional financial details are in the Budget Impact section.
Discussion
The Town solicited construction bids via Rocky Mountain BidNet to add 40 parking spaces to,
and to construct a federally required floodwall to protect, the parking lot at the Castle Rock Police Department/Municipal Court building at 100 Perry St. Three bids were received:
General contractor: Base bid amount:
53 Corporation $941,636.00 (recommended)
Hamon Infrastructure, Inc. $1,162,724.05
RME Ltd., LLC $1,262.315.60
53 Corp. provided the low project bid and is a licensed contractor with extensive experience in completing drainageway improvements, including for the Town. Staff and the engineer who designed the improvements reviewed 53 Corp.’s bid and recommend awarding the firm this Construction Contract.
Budget Impact
Based on the engineer’s estimated cost to construct the project, $891,873 has been included in the 2021 Budget for this purpose - $491,873 in the Police Capital Fund, and $400,000 in the Stormwater Fund. The low bid exceeded the engineer’s estimate, and the proportion of costs between the two funds is different than anticipated, so an additional appropriation will be requested within the 2021 Budget to accommodate the project as part of the year’s third budget amendment.
Time is of the essence to complete the project while weather remains favorable, so staff recommends proceeding with the work now, using already appropriated funds for the contract. A journal entry can be made later in the year to retroactively adjust line items once the budget amendment is executed. For the purpose of approving the contract, staff recommends encumbrances in the following line items:
110-1530-415.70-10 $225,277.50
212-4475-44.70-10 $302,402.10
133-2175-421.70-10 $491,873.00
Total with 10% contingency $1,019,552.60
If Council approves the third budget amendment as staff plans to propose, the $225,277.50 encumbered within the General Fund ultimately will be shifted to the Police Capital Fund, for a total authorization of $714,150.50 within that fund. The encumbrance within the Stormwater Fund will leave that fund with $97,597.90 in capacity remaining on the project, given the proportional project cost to that fund was less than anticipated.
Staff anticipates using a portion of the 10% in requested contingency funds to pay for permits necessary to complete the project. 53 Corp. is responsible for testing costs associated with the project.
Staff Recommendation
Staff recommends Town Council approval of a Resolution awarding a Construction Contract to 53 Corporation for the 2021 Police Department Parking Lot Improvement Project in the amount of $926,866. Staff also recommends an authorization of $92,686.60 for contingency, for a total Council authorization to pay up to $1,019,552.60 to 53 Corp. for the completion of this project.
Proposed Motion
“I move to approve the Resolution as introduced by title.”
Attachments
Attachment A Resolution
Exhibit 1 Construction Contract