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
Walt Schwarz, P.E., CIP Project Manager
Title
Resolution Approving a Construction Contract with Garney Companies, Inc., for the Parker Midsection Pipeline Project [Intersection of Heirloom Pkwy and Hess Road in Parker, CO]
Body
________________________________________________________________________________
Executive Summary
Castle Rock Water (CRW) staff requests approval of a Resolution (see Attachment A) approving a Construction Contract (see Exhibit 1) with Garney Companies, Inc. (Garney) for constructing the Parker Midsection Pipeline project at a contract amount of $10,312,868. This project is a key part of the overall Water Infrastructure Supply Efficiency (WISE) project that will continue to deliver water to Castle Rock from Denver Water and Aurora Water. The pipeline will also be used to transmit water from our Box Elder project. These projects are key to Castle Rock’s long term renewable water plan.
A competitive bidding process was used to obtain bids from five pre-qualified contracting firms. Construction bids ranged from $10,312,868 to $12,819,179 and each bid was evaluated for completeness to ensure that the bid meets all requirements identified in the invitation to bid and specifications. All bids were determined to be responsive and complete. Garney’s project cost includes construction services to complete a new 42-inch diameter potable water transmission pipeline approximately 2.3 miles in length and facility improvements to increase pumping capacity at the existing Canyons Pump Station. In addition to the contract amount, CRW requests authorization of a 3% contingency in the amount of $309,386 for a total authorization request of $10,622,254. The approved 2022 budget for this project is $14,415,520.
Garney shall undertake the work upon execution of the agreement and receipt of a notice to proceed from the Town. Work is scheduled to be complete 450 days from the Notice to Proceed date (fall of 2023). A location map for the proposed potable water transmission pipeline is provided (Attachment B). The total estimated cost of the project based on this contract is $11,137,760.
History of Past Town Council, Boards & Commissions, or Other Discussions
On March 16, 2021, Town Council approved a resolution for an Intergovernmental Agreement (IGA) between the Town of Castle Rock (TCR) and Parker Water & Sanitation District (PWSD) for design, construction, and project management of this project. Because PWSD does not have an immediate need for this project, Castle Rock will be funding the entire project up front, with PWSD paying back their portion (an estimated $7.05 million) in early 2024 and Dominion paying their portion (an estimated $1.6 million) in accordance with an IGA between Castle Rock and Dominion.
This project was presented to the Water Commission on April 27, 2022. The Commission voted unanimously 5 to 0 to recommend Town Council approval of the Resolution as presented.
Discussion
A major goal of the Town’s Water Resources Strategic Master Plan is to establish a renewable, sustainable water supply that accounts for 75% of the Town’s annual demand. In working towards achieving this goal, CRW will be importing renewable water from various sources such as water supplies currently received via the Water Infrastructure and Supply Efficiency (WISE) regional partnership.
The Town and Dominion Water & Sanitation District (DWSD) currently have IGAs in place where PWSD shall convey WISE water through PWSD distribution infrastructure to CRW’s existing WISE Local Infrastructure in Douglas County along Outter Marker Road. PWSD worked with Jacobs (engineering firm) in November of 2020 and identified a section of 24” diameter infrastructure mid-way in the PWSD distribution system that was nearing capacity and would need upsizing by end of year 2023. This proposed 42” diameter Parker Midsection Pipeline project will be completed prior to end of year 2023 and will provide CRW and DWSD with the agreed to capacities of potable water. This project will also increase CRW’s allotted pumping capacity in PWSD’s Canyons Pump Station from 3.0 MGD to 8.8 MGD.
A location map (Attachment B) is provided that shows the existing 24-inch diameter PWSD pipeline along the eastern side of the Rueter-Hess Reservoir and the proposed 42-inch diameter Midsection pipeline (near to and parallel with the 24-inch pipeline). Limits of the Midsection pipeline extend from near the Rueter-Hess Water Purification Facility on the northern end and to the PWSD Canyons Pump Station on the southern end.
Some key terms established in the IGA with PWSD include that CRW will manage the project and provide regular updates to PWSD. An invoice for final cost reimbursement will be sent to PWSD upon completion of the construction phase of the project. Also, after construction completion the TCR will convey ownership of the new infrastructure to PWSD by Bill of Sale (CRW will maintain capacity in the pipeline and pump station).
Invitations to bid this project were distributed to seven pre-qualified contracting firms including American West, BT Construction, C&L Water Solutions, Garney Constructors, Global Underground, Redline Pipeline, and Reynolds Construction. Bids were received from five of the firms. The following table lists the total bid cost received from each of the five general contracting firms.
|
Consulting Firm |
Total Cost |
|
Garney |
$10,312,868 |
|
Reynolds |
$11,441,287 |
|
Redline |
$11,571,898.50 |
|
Global Underground |
$11,737,170 |
|
BT Contracting |
$12,819,179 |
In 2017 Garney completed the Town’s WISE Local Infrastructure project using 36” diameter potable water piping (construction cost, $13.2 million). Garney has also completed other projects using larger diameter piping typically made of steel. In 2020, Garney successfully completed a $85.4 million water treatment facility project for Thornton, CO and also the Town’s Plum Creek Water Purification Facility Advanced Treatment project for $28.4 million. Burns & McDonnell Engineering (BMcD) were the engineer of record for these three projects noted above. BMcD has experience working with Garney’s pipeline and facility crews and BMcD is confident in Garney’s ability to successfully perform this project. Construction of the Parker Midsection Pipeline Project is scheduled to be complete in the fall 2023 timeframe and ahead of when PWSD’s existing 24” mid-segment pipeline may become undersized to convey water to CRW and DWSD.
BMcD are the engineers on record for the Parker Midsection Pipeline Project and they have completed a detailed evaluation of the bid packet received from Garney. BMcD has submitted a letter to the Town recommending award of the construction contract to Garney.
The table below provides a summary of all of expected the costs for the project.
|
Task |
Cost |
|
Project Design |
$496,033 |
|
Construction Phase Eng. Services |
$328,859 |
|
Construction |
$10,312,868 |
|
Total |
$11,137,760 |
Budget Impact
Funding for this construction project was budgeted in 2022 and will come from account 211-4375-443.77-72 Water Resources, CIP - WISE Infrastructure, Project Code <WR WLI>. This account has a budget balance of approximately $14,192,400 for 2022. Construction costs will first be paid from the previously approved $30M Series 2022 Bond Funds.
Staff Recommendation
Staff and CRW Commission recommend that Town Council approve the Construction Contract as presented in Exhibit 1 in the amount of $10,312,868 plus a Town-managed contingency of $309,386 for a total cost not to exceed $10,622,254.
Proposed Motion
“I move to approve the Resolution as introduced by title.”
Alternative Motions
“I move to approve the resolution as introduced by title, with the following conditions: (list conditions).
“I move to continue this item to the Town Council meeting on _____ date to allow additional time to (list information needed).”
Attachments
Attachment A: Resolution
Exhibit 1: Agreement
Attachment B: Location Map