Estes Park board approves Mall Road waterline contract after questioning 30% contingency

The Estes Park Town Board on Tuesday approved Resolution 75-26, awarding the Mall Road Waterline Project to High Plains Excavation and Aggregate LLP and authorizing a contingency that drew questions from board members after the item was pulled from the consent agenda. The contract is for $1,786,950, with up to $536,000 in contingency spending, for a total project cost of $2,322,950. Mayor Gary Hall said the contingency appeared unusually high before the board voted to approve the resolution separately.

Hall asked staff to explain why the contingency was set at 30%. Utilities Director Chris Eshelman said the project includes three sensitive crossings — the Bureau of Reclamation siphon, the Big Thompson River and Highway 34 — as well as a high-pressure gas line in the area. Those conditions increase the chance of field changes during construction, he said.

"Typically we run 20%," Eshelman said. "We just added 10 to cover those higher risk elements and the unknowns associated with that."

Trustee Bill Brown said the contingency was the reason the item was removed from consent, and Hall said he had the same concern. After Eshelman's explanation, Hall said the project would be "a real value" to the town's water system and the community. Trustee Mark Igel added that completing the project "will be a huge asset."

Hall also asked about the project team after noticing that one subcontractor appeared to account for about 65% of the work. Eshelman said the town had not yet met with the contractor to determine how the work would be divided, but said both High Plains and EZ Excavation were found to be qualified, responsive and responsible bidders after review by the town's consultant. He added that whoever performs the river crossing work must have prior experience with that type of construction.

Mayor Pro Tem Kirby Hazelton made the motion to approve the resolution, and the board then voted to move the project forward.