To: Members of the Castle Rock Water Commission
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 First Amendment to the Plum Creek Water Purification Facility Expansion Project Construction Agreement with Garney Companies, Inc. for Work Package One [1929 Liggett Road, Castle Rock CO] DRAFT
Town Council Agenda Date: May 7, 2024
Body
________________________________________________________________________________
Executive Summary
Castle Rock Water (CRW) staff request Town Council approval of a resolution (Attachment A) approving a First Amendment to the Plum Creek Water Purification Facility (PCWPF) Expansion Construction Agreement (Exhibit 1) with Garney Companies, Inc. (Garney). PCWPF is one of the most advanced water treatment plants in the nation and has won numerous awards including XXXX.
The amount of the contract amendment is $_________ and represents Work Package #1 (WP#1). This portion of the construction consists of purchasing equipment packages for the advanced treatment systems as well as site work including buried filter backwash pipe installation. Equipment being purchased with WP#1 includes the ozone generation and destruct systems, liquid oxygen system, side stream ozone injection system, activated carbon adsorption filters, membrane filters, flocculation and sedimentation systems, and an emergency electrical generator for the PCWPF building. The design team is planning for a second work package to be presented to Town Council in January 2025 for the balance of project work.
As previously presented to Town Council, the PCWPF Expansion construction contract will be a Guaranteed Maximum Price Construction Management (GMPCM) arrangement. Construction work is to be awarded in two separate work packages. Garney was selected as the Construction Manager and General Contractor (CM/GC) through a competitive process and has a proven track record in the water and wastewater industry. GMPCM was successfully utilized by the Town for design and construction of the PCWPF Project completed in 2014 and PCWPF Advanced Treatment (AT) Project completed in 2021 (CM/GC was Garney for AT project). Upon authorization to award WP#1, Garney will begin ordering long lead equipment packages. Garney plans to begin site mobilization in October 2024 with overall construction completion of the project planned for Spring 2028 (including startup of new facility).
The Initial Guaranteed Maximum Price (IGMP) for WP#1 based on 30% design documents, including General Conditions (GCs) and other fees, developed by the Town and the design consultant in cooperation with Garney, was $20,553,516. The Final Guaranteed Maximum Price (FGMP) for WP#1 is $__________, an increase due to changes in scope, and price increases with material and equipment packages. Staff recommends executing an Amendment to the contract with Garney for WP#1 to construct the associated components of the Project.
Current known and estimated project costs are shown below:
|
BMcD |
Design (including $119,444 contingency) |
$ 2,508,324 |
|
TCR Permit Fees |
Est. based on PCWPF Advanced Treatment project |
$ 120,000 |
|
|
|
|
|
Garney Companies BMcD |
Pre-construction services Constr. Phase Engineering Services (estimated at 6% of Construction cost) |
$ 311,022 $ 3,900,000 |
|
Garney Companies |
Construction costs WP#1 (FGMP) WP#2 (IGMP) |
$ $45,294,930 |
|
|
TOTAL |
$72,376,770 |
Notification and Outreach Efforts
This is a secure facility located out of the public view. As such, the only notification and outreach associated with this project is through the budgeting process with Council where this item was identified as a major capital project for Castle Rock Water.
History of Past Town Council, Boards & Commissions, or Other Discussions
Town Council approved Resolution 2023-055 on April 18, 2023 approving a Services Agreement with BMcD for the design of the PCWPF Expansion.
Town Council approved Resolution 2023-152 on December 19, 2023 approving a Construction Contract with Garney for Preconstruction Services on the PCWPF Expansion.
Discussion
A need for a sustainable long-term water supply was identified in the Town’s Water Resources Strategic Master Plan and one of the major goals of that plan is establishment of a renewable, sustainable water supply that accounts for 100% of the annual demand for water in Castle Rock by 2065. Renewable water sources include East Plum Creek alluvial wells, surface water using existing Town Water Rights, and imported surface water from outside of the Plum Creek Basin (e.g., WISE water). PCWPF also purifies a majority of Castle Rock’s reusable water supplies.
PCWPF is currently a 6 Million Gallon per Day (MGD) facility receiving raw water from four main sources: Castle Rock Reservoir 1 (CRR1 - connected with diversion on Plum Creek (PCD) near Sedalia and the source of most of CRW’s reusable water), CR1 (a diversion on East Plum Creek near PCWPF), various alluvial wells along East Plum Creek (renewable) and deep (Denver Basin/nonrenewable) groundwater wells. CRW is currently working with BMcD under separate contract on the Chatfield Pump Back Project. This pump back project will supply water to CRR1 and Castle Rock Reservoir 2 (CRR2) from Chatfield Reservoir, expanding CRW’s renewable water sources and providing a high quality, low total dissolved solids (TDS) water source for TDS blending and additional renewable water yield. CRW is also working on redesigns for the two surface water diversions that feed PCWPF, CR1 and PCD. Both of these diversions are unable to operate at the fully permitted intake due to design issues leading to sanding and debris shutting down the diversions during various creek conditions. These redesigns are currently scheduled for construction in 2025 through 2026.
The original PCWPF project was completed in 2014 and included 6 MGD capacity pretreatment facilities with aeration, rapid mix, flocculation, sedimentation, and greensand filtration. The greensand filtration was followed by membrane filtration and chemical addition to form chloramines for a disinfection residual in the distribution system. Other facilities constructed with the original PCWPF include a 174,000-gallon clearwell, high service pump station, chemical storage and feed systems. Where practical, areas like the chemical storage facilities were designed and constructed planning ahead for expansion to 12 MGD (no changes are needed to chemical storage with this project). Additionally, items like engineered knock-out masonry wall sections are in place to facilitate access to the new pretreatment building.
In 2021 the PCWPF AT project was completed and added 6 MGD capacity of advanced treatment systems such as pre-ozone, biologically active carbon (BAC) filtration (previously greensand filters converted to BAC), advanced oxidation with ozone and hydrogen peroxide, granular activated carbon (GAC) adsorption, and ultraviolet (UV) disinfection. The multiple barrier approach was designed to treat source waters for removal of pathogens, organics, regulated drinking water contaminants, and nonregulated contaminants of emerging concern (CECs). The primary goals of the PCWPF AT Project were to meet or exceed requirements of the US EPA Safe Drinking Water Act, as well as additional requirements from the Colorado Department of Public Health and Environment (CDPHE) and meet or exceed requirements for direct potable reuse to allow reuse of all of CRW’s reusable supplies. The facility already meets the treatment requirements for the latest drinking water standards issued by US EPA, the standards for perfluoro alkyl substances (PFAS), three years ahead of the deadline for water providers across the country. This project also included a 1,250-kilowatt (kW) diesel powered generator to power the AT Building up to 12 MGD capacity.
In order to continue using and expanding renewable water sources, CRW must implement our long-term plan to expand PCWPF’s current treatment capacity of 6 MGD up to 12 MGD. Expanding PCWPF will coincide with the completion of CRR2 and redesign and improvement of CR1 and PCD and provide for keeping up with growing demands as the Town adds additional residents and businesses. Once expanded, PCWPF will be the largest water treatment facility in CRW’s system.
In general terms, with this project CRW will expand all treatment processes, modify the solids handling processes, install a new emergency electrical generator for the original PCWPF Building (houses high service pumping), and increased laboratory areas for additional sampling and water quality testing needs. For example, treatment system improvements will include a new building adjacent to the existing pretreatment building to house 6 MGD capacity of a new rapid mix basin, flocculation and sedimentation treatment steps, and new BAC filter bays. The project will add membrane filtration racks with 78 modules each to match existing racks. Ozone system improvements will include additional liquid oxygen storage with vaporizers, new ozone generators with chillers, ozone injection and destruct skids, and a new ozone loop reactor made of stainless-steel piping. Ten GAC filters will also be added in an expansion of the PCWPF AT building. Attachment B provides a general layout of the proposed expansion of PCWPF.
CRW staff recommends using the GMPCM project delivery method for construction of the PCWPF Expansion Project. The GMPCM method involves hiring a CM/GC to perform contract administration and to guarantee a maximum price for the complete project. The owner and CM/GC agree on the price before the construction phase begins and all work is awarded through a competitive subcontractor bidding process.
The Owner, CM/GC and Engineer work collaboratively to design a project that fits a given budget and adjustments to the project design and/or budget are made during the design phase to ensure a successful project that meets the Owner’s expectations regarding cost, quality and schedule. The CM/GC’s expertise in construction, contracting, and estimating can influence decisions made by the design consultant to keep project costs to a minimum in a manner consistent with the owner’s objectives for quality and functionality. With this end in mind, CRW selected a contractor through the process described below.
In July 2023 CRW advertised for contractors using BidNet, an online platform that advertises government requests for qualifications (RFQs) and requests for proposals (RFPs). Six contracting firms responded by submitting Statements of Qualifications (SOQs) in August. The SOQs were reviewed by the project design team (staff from CRW & BMcD) and two contractors were shortlisted. The shortlisted contractors included:
• Garney Companies, Inc
• PCL Construction, Inc.
An RFP with BMcD’s 30% complete design documents was then issued on September 7, 2023 to the short-listed contractors and a mandatory pre-proposal meeting was conducted. Proposals were received on October 18, 2023 from the two contractors. A selection committee comprised of CRW and BMcD staff reviewed the proposals. The firms were ranked and Garney was unanimously ranked as the top firm.
CRW then worked with Garney and BMcD to refine the proposal cost estimate and finalize the IGMP at $65,848,446 (included WP#1 & WP#2). This cost includes preconstruction services, general conditions, overhead and profit and the cost to do the work. This IGMP represents the most the Town can expect to pay for construction of the PCWPF Expansion Project, barring any changes in scope. However, during the pre-construction period, the Town will work with the contractor and designer to adjust the design so that construction fits within the budget. Under the construction agreement for preconstruction work, Garney will provide services that include, but are not limited to; project management, budgeting, estimating, scheduling, constructability reviews, value analysis of all systems and components, determination of sequencing the work, information and reporting systems, subcontractor bid strategies and procurement throughout the construction document design phase. Garney attends all regularly scheduled project meetings during the design phase.
A value engineering phase was completed as costs continued to be updated based on development of additional project detail. One implemented value engineering idea by Garney that improved the schedule was to include excavation work and installation of new backwash piping with WP#1. Plan is to complete excavation and piping work with the facility off line during winter of 2024 / 2025. Leaving this work in WP#2 would have pushed it out to following winter adding time and associated costs to the project.
The following table lists the total contract amount for WP#1 with CM/GC fees (see Exhibit 1 with Agreement for detail of CM/GC fees).
|
Total Cost WP#1 with CM/GC Fees |
|
|
|
|
Garney WP#1 Direct Work |
$ 916,105 |
|
Concrete 1 MG Tank |
$ 1,624,303 |
|
Advanced Treatment Equipment |
$ 6,464,789 |
|
CM/GC Fees |
$ 1,069,777 |
|
Allowance for buried pipeline |
$ 175,000 |
|
Total WP#1 Cost |
$ 10,249,971 |
Approving WP#1 allows Garney to purchase equipment systems with long lead times and to maximize earthwork and piping activities beginning later this year. WP#2 will also be advertised publicly by Garney and includes the remaining work needed to complete the project (including construction of a new building and expansions to the pretreatment and GAC buildings). Garney will award WP#2 with multiple subcontracts broken out into specialties, for example electrical, masonry, and heating ventilation and air conditioning.
The schedule for constructing the facility proposed by Garney fits within the Town’s expectations and requirements. Assuming mobilization and construction activities begin in October 2024, final construction completion of the project is scheduled for spring 2028. This completion schedule will be on time for when water from the facility will be needed to meet the summer demands of 2028.
Budget Impact
Funding for this project was included in the 2024 budget in the project fund shown below. Current account balance in this account is approximately $_______. A budget amendment will be completed in 2024 to fully fund the project.
|
Project |
Account Number |
This Contract |
|
Advanced Oxidation Facility |
211-4375-443-77-75 |
$ |
Proposed Motion
“I move to recommend to Town Council approval of the Resolution as presented”
Attachments
Attachment A: Resolution (Not Attached)
Exhibit 1: Agreement (Not Attached)
Attachment B: Location Map (Not Attached)