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, Water Resources Manager
Title
Resolution Approving Funding the Execution of Water Provider Agreement Amendment No. 6 Between the Town of Castle Rock and the Colorado Water Conservation Board for the Purchase of Additional Storage Space in the Chatfield Storage Reallocation Project [Chatfield Reservoir in Douglas and Jefferson Counties]
Body
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Executive Summary
The purpose of this memorandum is to request Town Council approval of a resolution (Attachment A) approving the funding of the Town's purchase of our 2024 option in the Chatfield Reservoir Reallocation Project. Renewable water storage is a key component of the Town of Castle Rock's long-term water plan and participation in the Chatfield Storage Reallocation Project gives the Town unique access to additional renewable water sources. The purpose of this memorandum is to request Town Council approval to authorize funding for the purchase of an additional 129 acre-feet (AF) of storage shares from the Colorado Water Conservation Board (CWCB). Castle Rock currently owns 719 AF of storage and has the right to purchase 1,281 AF of storage in accordance with our 2015 agreement with CWCB over the next 10 years.
First storage of reallocation pool water started in May 2020 and Castle Rock currently has a full storage pool with approximately 2,000 AF of water in storage. The purchase of these additional shares will give the Town a total of 848 AF of owned water storage space with the ability to store additional water (up to 2,000 AF) under a storage lease agreement that we have in place with the CWCB.
The cost to purchase 129 AF of storage from CWCB is $1,070,825.13 and the Assumption Agreement and Water Provider Agreement with CWCB related to this purchase are provided in Attachments B and C, respectively. Funding for this purchase was included in the approved 2024 budget. Funding for the purchase of the remaining storage shares under our 2015 agreement with CWCB is included in Castle Rock Water’s multi-year financial plan.
Budget Impact
The cost for the 129 AF storage space purchase is $1,070,825.13. The Town has $1,097,596 in the project budget (Account Number 211-4375-443.77-29, CIP/Chatfield Reallocation) for 2024.
Staff Recommendation
Staff along with the Castle Rock Water Commission recommend Town Council approve funding for 129 AF of additional storage shares for the 2024 option in the Chatfield Reservoir Reallocation Project.
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
Staff Report
Attachment A: Resolution
Attachment B: Assumption Agreement
Attachment C: Water Provider Agreement
Attachment D: Chatfield Program History
Attachment E: Preliminary Design Alignment for the Chatfield Pump Back Project