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 Service Agreement with Burns and McDonnell Engineering Company, 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 Services Agreement (see Exhibit 1) with Burns & McDonnell Engineering Company (BMcD) to complete construction phase engineering services for the Parker MidSection Pipeline project at contract amount of $328,859. 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.
BMcD was retained as the design consultant for this project through a competitive process and they have prepared plans and specifications for construction of this project. As engineering consultant for the project, they have direct knowledge and experience with the water pipeline infrastructure and pump station improvements designed for this project. Their continued support during construction is important to maximize value and to ensure a quality-constructed facility built in accordance with facility plans and specifications.
At the request of CRW, BMcD submitted a proposal to provide engineering services during construction and startup of new facilities. These services include but are not limited to, attending weekly progress meetings, construction inspection with a part time resident project representative, reviewing submittals, responding to requests for information from the contractor, reviewing project records, providing start-up assistance, and preparing record drawings. Staff recommends approval of the services agreement for a not-to-exceed amount of $328,859 to retain B&McD for construction phase engineering services for the Parker Midsection Pipeline project. The total estimated cost of the project including this contract is $11,137,760. Completion of the project is expected by Fall of 2023.
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 project.
Discussion
On March 6, 2018, the Town and PWSD entered into a Wheeling Agreement for PWSD to transport WISE and other water to the Town through portions of infrastructure owned and operated by PWSD. This agreement also discussed a bottleneck in PWSD’s system that limits Castle Rock’s (and Dominion’s) flows to 1 MGD until December 31, 2023. After this date, Castle Rock and Dominion would no longer own capacity in an existing 24-inch diameter pipeline section.
A previously approved IGA between TCR and PWSD included design and construction of a new 42-inch diameter potable water distribution pipeline (this Parker Midsection Pipeline project, about 2.3-miles in length) and improvements to increase pumping capacity at an existing PWSD Canyons Pump Station. As part of the Midsection Pipeline project, the PWSD’s Canyons Pump Station will be expanded to increase Castle Rock’s capacity from 3 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). Project limits of the Midsection pipeline extend from near the Rueter-Hess Water Purification Facility on the northern end to the PWSD Canyons Pump Station on the southern end.
Some key terms established in the IGA 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).
The BMcD fee for construction phase engineering services is $328,859 which is approximately 3.2 percent of the low cost construction bid amount of $10,312,868. The proposed BMcD fee is fair and reasonable considering the large diameter steel piping (with field welded joints) and pump station improvements to be installed. Sole-sourcing these services with the design consultant will help ensure that the project is constructed in compliance with plans and specifications. BMcD specializes in municipal water infrastructure design, bidding and construction phase services and have a proven record working with CRW during construction and startup of projects such as the Plum Creek Water Purification Facility and WISE Pipeline project. BMcD has consistently delivered excellent value and engineering services when completing CRW projects. Therefore, a sole source contract is recommended. A sole source justification form is included in Attachment C.
Budget Impact
Funding for this design 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 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 Agreement as presented in Exhibit 1 in the amount of $328,859.
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
Attachment C: Sole Source Justification Form