To: From: Prepared by: Agenda Title: CITY COUNCIL AGENDA MEMORANDUM Mayor and City Council Charles Ozaki, City and County Manager Jim Becklenberg, Assistant City and County Manager David Allen, Director of Public Works Melanie Calvert, Water Resources Manager Erin Messner, Water Resources Administrator City and County of Broomfield, Colorado Meeting Date Agenda Category Agenda Item # June 28, 2016 Council Business 11 (f) Proposed Resolution No. 2016-100, Authorizing and Approving an Agreement with Sunrise Engineering, Inc. for Heit Pit Owner's Representative Services Summary The City and County of Broomfield owns, operates, and maintains a non-potable water delivery system that is used to irrigate parks, landscaped rights-of-way, and large commercial areas. The benefits of having a non-potable water distribution system include more efficient use of a limited resource, lower operating costs for treatment, and avoided capital costs on the potable water system. Broomfield has been finalizing the plans for several capital projects to fully utilize the non-potable water rights owned by Broomfield. One capital project integral to Broomfield's complete utilization of its non-potable supplies is the completion of the Heit Pit, a gravel pit storage reservoir located near Fort Lupton, Colorado, approximately 1,200 feet west of the South Platte River. The Heit Pit was acquired by Pulte Home Corporation as part of the transfer of water rights and non-potable infrastructure for the Anthem development. The Heit Pit, when fully developed, will be used to deliver substitute water supplies to the South Platte River so Broomfield can use Colorado-Big Thompson (C-BT) Project effluent for its non-potable system. The projected storage capacity will range between 1,265 and 1,560 acre-feet. The Heit Pit is currently being mined for sand and gravel. Mining is expected to be completed in 2017, after which Broomfield s use as a water storage facility may begin. There are three phased CIP improvement projects planned to convert the Heit Pit from an excavated pit to a functional reservoir facility and fully integrate Heit Pit into Broomfield's non-potable system. The first phase of the Heit Pit CIP improvements includes the construction of a control structure, a 36-inch diameter pipeline that will be used to release water to the South Platte River, a 24-inch diameter pipeline to carry water into the Heit Pit, and an augmentation station at the Lupton Bottom Ditch. The preliminary engineer s estimate for this first phase of work is $1.2 million. The construction costs for the first phase will be shared between Broomfield and the Central Colorado Water Conservancy District pursuant to an Intergovernmental Agreement dated August 25, 2009. The second and third phases are a pump station and a wellfield. To proceed with the first phase of the Heit Pit improvements, Broomfield is proposing to hire an Owner's Representative to provide bid assistance for contractor selection and oversee construction of this remote project. A Request for Proposals process began on April 8, 2016, and yielded six proposals. Site interviews with three consulting firms were conducted, and Broomfield staff determined that Sunrise Engineering submitted the lowest responsive cost proposal for this project. Proposed Resolution No. 2016-100 contains the necessary actions to approve the consulting agreement with Sunrise Engineering for Owner's Representative Services, including bid assistance and project construction oversight of Broomfield's Heit Pit inlet and outlet pipe improvements in an amount not to exceed $125,648. This contract also includes provisions to allow for additional services outside of the scope of this Request for Proposals, as requested, according to the hourly fee schedule provided, not to exceed $35,000. If approved, staff anticipates the project will be completed by July 2017. Future Council actions on this project include consideration of the construction contractor contract for the first phase, and design and construction for the two subsequent phases of the overall Heit Pit project. Prior Council Action On May 23, 2006, Council approved Resolution No. 2006-25, authorizing an IGA with Northern Colorado Water Conservancy District to provide substitute supplies for Colorado-Big Thompson project effluent. On November 21, 2006, Council approved an Intergovernmental Agreement with the Ground Water Subdistrict of the Central Colorado Water Conservancy District to use reservoir storage in Koenig Pit during the development of Heit Pit. On January 13, 2009, Council approved Ordinance No. 1908, authorizing an agreement with Pulte Homes to acquire various reuse system water rights and infrastructure improvements. On August 25, 2009, Council approved Resolution No. 2009-144, authorizing an IGA with the Ground Water Management Subdistrict of the Central Colorado Water Conservancy District, for the Construction of Water Facility Improvements for the Heit and Koenig Pits. On August 25, 2009, Council approved Resolution No. 2009-145, authorizing a carriage agreement with the Meadow Island No. 1 Ditch Company, to allow for Broomfield to utilize excess ditch capacity to carry water from the South Platte River to the Heit Pit. On July 9, 2013, Council approved Resolution Nos. 2013-97 and 2013-98 authoring acquisition of utility easements in the vicinity of the Heit Pit. Financial Considerations Sources and Uses of Funds Sources of Funds 2016 Reuse Water Fund Capital Improvement Project Budget: Heit Pit - Outlet Facility $ 580,114 Total Funds Available $ 580,114 Uses of Funds Owner s Engineering Representative Extra Services as Requested $ 125,648 $ 35,000 Total Projected Expenditures $ 160,648 Projected Balance $ 419,466 Alternatives Do not proceed with contracting an Owner's Representative and cease Heit Pit improvements. Based on the above, it is recommended... That Resolution No. 2016-100 be adopted. Proposed Actions/Recommendations 11f - Page 1
Heit Pit Owner s Representative Page 2 BACKGROUND Broomfield s non-potable water system came on line in 2004. The original service area included Interlocken and numerous Broomfield parks. Since that time, several expansions have occurred, the most significant being the addition of the public and HOA areas of the Anthem residential development near Sheridan Parkway and the Northwest Parkway. The non-potable water system currently serves 96 connections and irrigates approximately 1,500 acres of land within the City and County of Broomfield. The primary source of non-potable water in Broomfield is treated wastewater effluent generated from use of Windy Gap water supply. This water is pumped to Great Western Reservoir during the winter months, stored, and then used to irrigate parks, public rights-of-way, and other areas during the spring, summer, and fall months. Other primary sources of supply for the non-potable system include raw water from ditch shares on Clear Creek, Coal Creek, and the South Platte River, and wastewater effluent from the City of Aurora and the Consolidated Mutual Water Company. Broomfield acquired the Heit Pit as part of the Improvement Agreement for Anthem PUD Non- Potable Irrigation Improvements with Pulte Home Corporation in January 2009. Heit Pit is located in Weld County, north of Ft. Lupton and approximately 1,200 feet west of the South Platte River. Figure 1, below, shows the approximate location of the Heit Pit in relation to Broomfield. Figure 1 Heit Pit Vicinity Map Heit Pit will become an integral component of the Broomfield non-potable water system after the sand and mining operations are completed in 2017. There are three phased CIP improvement projects planned and approved to convert the Heit Pit from an excavated pit to a functional reservoir facility and fully integrate Heit Pit into Broomfield's non-potable system. The first phase 11f - Page 2
Heit Pit Owner s Representative Page 3 of the Heit Pit CIP improvements includes the construction of a control structure, a 36-inch diameter pipeline that will be used to release water to the South Platte River, a 24-inch diameter pipeline to carry water into the Heit Pit, and an augmentation station at the Lupton Bottom Ditch. The engineer s estimate for this first phase of work is $1.2 million. The water stored in Heit Pit will be released to the South Platte River throughout the year so Broomfield can utilize effluent from its Colorado-Big Thompson (C-BT) water source for the nonpotable system through a substitution operation. The C-BT water used in Broomfield is replaced in the Platte River by water stored in the Heit Pit. The projected storage capacity will range between 1,265 and 1,560 acre-feet. Several facility improvements need to be constructed to deliver and release water from the Heit Pit and make it a fully functional reservoir. This overall project is the subject of a cost-sharing agreement Broomfield has entered into with the Central Colorado Water Conservancy District (CCWCD). This agreement is briefly summarized below, including the resolution under which it was passed. While cost-sharing for the construction of the pipelines and control facilities is contemplated in the agreement, costsharing for Owner s Representative services is not. Staff believes it will be in the best interest of Broomfield to contract with a separate Owner s Representative in order to protect our own interests in the joint project. PREVIOUS COUNCIL ACTIONS Broomfield has entered into various agreements that support the potential expansion of the nonpotable system to the northeast area. These agreements are summarized below: Intergovernmental Agreement (IGA) between Northern Colorado Water Conservancy District (NCWCD) and Broomfield May 23, 2006, Resolution No. 2006-25 This IGA with NCWCD provides a means for Broomfield to increase its non-potable water supplies to include C-BT effluent. In accordance with the IGA, Broomfield can use C-BT effluent for its non-potable system and provide other substitute water supplies for subsequent deliveries within the NCWCD boundaries. Intergovernmental Agreement between the Groundwater Management Subdistrict of the Central Colorado Water Conservation District (CCWCD) and Broomfield November 21, 2006, Resolution No. 2006-188 This agreement provides for use of CCWCD s Koenig Pit for water storage in the interim while Heit Pit is under construction. It is set to expire in 2017. Non-Potable Improvements Agreement between Pulte Homes Corporation and Broomfield January 13, 2009, Ordinance No. 1908 Under this agreement, Broomfield acquired various non-potable system improvements, including transmission pipelines, Siena Reservoir in Broomfield, the Heit Pit (storage reservoir) near the South Platte River, and several ditch company shares on the South Platte River and South Boulder Creek. In exchange for the assets, Broomfield provided Pulte with credits toward existing and future reuse tap license fees within the Anthem development. Intergovernmental Agreement between the Groundwater Management Subdistrict of the Central Colorado Water Conservation District (CCWCD) and Broomfield August 25, 2009, Resolution No. 2009-144 11f - Page 3
Heit Pit Owner s Representative Page 4 This agreement provides for cost-sharing abilities on shared facilities that provide benefit to both parties. These costs would include design, construction, and maintenance and would include items such as a splitter structure to regulate flows and a river outlet pipeline back to the South Platte River. It also provides for buy-in capabilities for CCWCD concerning the groundwater wells and the collection pipeline from the groundwater wells. Carriage Agreement with the Meadow Island No. 1 Ditch Company August 25, 2009, Resolution No. 2009-145 This agreement allows Broomfield to use an existing ditch to convey water from the South Platte River and other tributaries to the Heit Pit for storage. Acquisition of a Utility Easement from Robert M. Stahl and Mary E. Stahl and Acquisition of a Utility Easement from the Christine J. Smith Revocable Trust and Robert M. Stahl c/o Robert M. Stahl July 9, 2013, Resolution Nos. 2013-97 and 2013-98 These acquisitions were for the easements that are necessary to construct and operate several groundwater wells and related infrastructure including pumps, motors, piping, electrical equipment, and control lines. These wells will be located along the west bank of the South Platte River. The wells would pump water owned by Broomfield from the South Platte River to a splitter structure for delivery to Heit Pit. OWNER'S REPRESENTATIVE SERVICES The Heit Pit design plans and bid specifications are nearly complete, and at this time Broomfield is prepared to move forward with the construction of the inlet and outlet piping project. An Owner's Representative will be responsible for representing Broomfield during the construction of key infrastructure 12 miles outside of Broomfield County. The selection of an Owner's Representative will be critical to the success of constructing the project adequately and integrating Heit Pit into Broomfield's non-potable water system. The scope of work for the Owner's Representative Services includes two phases: Phase 1: Bid Assistance and Contractor Selection. During the first phase, the Owner's Representative will review and become familiar with the complete plan set for the design of the Heit Pit inlet/outlet infrastructure. The Owner's Representative will then assist Broomfield in the bid process for selecting a contractor to construct the Heit Pit infrastructure. This will include participating in a pre-bid meeting, reviewing proposals, attending contractor interviews and site visits, as well as making a recommendation to Broomfield staff on the contractor with the lowest responsive cost proposal that will meet the project requirements. Phase 2: Construction Support Services. During the second phase, the Owner's Representative will provide construction oversight services. They will be responsible for quality assurance, providing onsite project coordination, managing change orders, construction invoice review and other essential duties to ensure cost-effective, timely and successful completion of the Heit Pit improvements. In addition to the scope of work as presented in the RFP, the engineering consultant selected will be assisting with any additional design changes that may be requested by Broomfield or by CCWCD prior to posting the construction project for bid. These additional services are outside of the scope proposed on during this open solicitation, will be subject to the hourly rate fee schedule provided by the consultant, and will not exceed $35,000. 11f - Page 4
Heit Pit Owner s Representative Page 5 REQUEST FOR PROPOSALS AND EVALUATION RESULTS A Request for Proposals (RFP) for an Owner s Representative for the Heit Pit Project was posted on Rocky Mountain Bid System on April 8, 2016. The solicitation was reviewed on the Rocky Mountain Bid System by 42 companies. Seven companies expressed interest to Broomfield s Purchasing Manager in bidding on the project. Ultimately, six of the engineering firms that reviewed the solicitation and expressed interest submitted proposals for the project: Bowman Consulting (Bowman), Farnsworth Group (Farnsworth), NV5, Inc. (NV5), Providence Infrastructure Consultants (PIC), RJH Consultants, Inc. (RJH), and Sunrise Engineering (Sunrise). Staff performed independent reviews of the firms proposal documents and ranked each firm based on experience, proposed fees and project timeline, their service plan, and references. Based on the results of staff rankings, three firms were interviewed on site: Bowman, PIC, and Sunrise. During the site interviews, the firms were evaluated on understanding and approach to the project, the firms' ability to communicate with Broomfield staff, and the firms' experience in working with ditch companies. Following the site interviews, each firm was given the opportunity to respond to a few written questions and provide Broomfield with the best and final offer. The table below lists the best and final offers associated with the three cost proposals: Company Name Amount Bowman Consulting $118,220 Sunrise Engineering $125,648 Providence Infrastructure Consultants $218,679 Broomfield staff ranked each of the firms based on both the site interview and final proposals and compiled those rankings with those from the original proposals. Sunrise Engineering received the highest evaluation score and was determined to be the most qualified consultant for this project. Sunrise s proposal showed that the company and the key professionals that would be assigned to this project have extensive experience serving as Owner's Representative on water conveyance and irrigation projects for design engineering and construction administration. Their proposal primarily followed the scope as written in the RFP, but explained potential issues and challenges that could arise during the planning process and how Sunrise would handle these challenges. In addition, their fees were very competitive, and the staff hours dedicated to the project were the highest. While other firms were only able to dedicate 40-50% of their time to field observation, Sunrise was able to promise 100%. Sunrise's experienced project manager will be living within eight miles of the project and will be able to maintain a valuable onsite presence. Sunrise Engineering considered distance when proposing on this project and has opted to not charge Broomfield any travel costs. A unique service Sunrise offered at no additional cost was the implementation of an internetbased GIS Cloud to document the work as it is in progress. This product would allow the construction observer to enter key information, GIS mapping of pipes and other infrastructure components as installation is occurring, and photos of the work in real time. As most of the infrastructure will eventually be underground, a GIS record of work with relevant photos will be extremely valuable. 11f - Page 5
Heit Pit Owner s Representative Page 6 In addition to the best and final offer provided by Sunrise Engineering for the Owner s Representative services, a fee schedule was provided for additional work outside of the scope of services for this RFP. The fee schedule is comparable to others provided for hourly engineering services. Sunrise Engineering may be asked to perform design revisions to the plan set and bid documents prior to putting the final package out to bid for construction. Broomfield will utilize the provided fee schedule for this additional work. Any design revisions will be done on an as-requested basis. FINANCIAL CONSIDERATIONS Broomfield s 10-year capital improvement program for the water reclamation system includes the funding for the development Heit Pit Infrastructure. The sources and uses of funds, as well as the projected timing of the expenditures, are summarized in the following table: Sources and Uses of Funds Sources of Funds 2016 Reuse Water Fund Capital Improvement Project Budget: Heit Pit - Outlet Facility $ 580,114 Total Funds Available $ 580,114 Uses of Funds Engineering Consultant Extra Services as Requested $ 125,648 $ 35,000 Total Projected Expenditures $ 160,648 Projected Balance $ 419,466 FUTURE COUNCIL ACTIONS IN RELATION TO THIS PROJECT After the Owner s Representative is hired, an RFP will be posted for construction services related to the actual construction of the piping facilities needed for Heit Pit. Council will then be asked to approve the construction contract and will be provided with project updates while it is under construction. The overall Heit Pit project has two additional phases that will begin upon completion of this first phase. The two other phases include the construction of a pump station and the installation of a series of wells to pump water out of the South Platte River alluvium. These additional components are scheduled to begin in 2017 and 2018. The estimated cost for these subsequent phases, which totals $4.3 million, is budgeted in the five-year Capital Improvement Program. COMPREHENSIVE PLAN This expansion of the non-potable water system is consistent with, and promotes, the following goals and policies in Broomfield s 2005 Comprehensive Plan: Goal UT-A: Utility Planning - Adequately plan so that utilities are reliable and support existing developed areas and future growth. Policy UT-A.2: Develop and manage all utility systems to increase reliability on a daily basis and in times of need (i.e., drought). Policy UT-B.5: Phase infrastructure to match the rate of development, while avoiding excessive debt expense and negative fiscal impacts. Policy UT-C.4: Use non-potable water systems (non-potable or raw water) for irrigation whenever possible. 11f - Page 6
Heit Pit Owner s Representative Page 7 Policy UT-G.3: Continue to explore opportunities for joint use of regional utility infrastructure that will provide more cost-effective means of servicing Broomfield. PROPOSED RESOLUTION Proposed Resolution No. 2016-100 contains the necessary actions to approve the Consulting Agreement with Sunrise Engineering for Owner's Representative services for the Heit Pit Inlet/Outlet Infrastructure Construction. Staff recommends adoption of the Resolution. 11f - Page 7
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