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
Title
Resolution Approving an Intergovernmental Agreement for the Operation of Shared Infrastructure by and between the Members of the Cherry Creek Project Water Authority [Douglas County within Cherry Creek Basin]
Body
________________________________________________________________________________
Executive Summary
The purpose of this memorandum is to seek Town Council approval of a resolution (Attachment A) approving an ”Operating Agreement” with the Cherry Creek Project Water Authority (CCPWA). The Operating Agreement provides details on the joint ownership and use of CCPWA facilities including Walker Reservoir, the Arapahoe and Cherry Creek alluvial wells that will be used to deliver water into Walker Reservoir, and the pump station that will be used to transfer water out of Walker Reservoir and into Cherry Creek to meet the individual member’s needs.
Additionally, CCPWA is issuing one final CIP assessment associated with the local wells portion of the overall Walker Reservoir Project in the amount of $680,625. This amount covers the remainder of Castle Rock’s portion (41.25%) of the local wells. Castle Rock has previously been invoiced and paid $1,510,781 for the work detailed in the table below:
|
Work Item |
Overall Cost (plus contingency) |
Castle Rock’s share (41.25%) |
|
Site Civil & Pipeline (HPM) |
$2,591,511.53 |
$1,068,998.51 |
|
Site Civil Design & Services During Construction (Farnsworth) |
$156,614.70 |
$64,603.56 |
|
Alluvial well drilling & equipping (Layne) |
$1,003,466.20 |
$413,929.81 |
|
Deep well drilling & equipping (Hydro Resources) |
$1,383,555.80 |
$570,716.77 |
|
Well locating, permitting & observation (HRS) |
$200,062.50 |
$82,525.78 |
|
Totals = |
$5,335,210.73 |
$2,200,774.43 |
To date and with this latest CIP assessment, Castle Rock will have expended $5,179,227.43 for the design and construction of the Walker Reservoir project.
Budget Impact
The final capital assessment for Castle Rock to complete the project expenditures is $680,625 and will be drawn from Account Number 211-4375-443.79-17 [CC Basin Infrastructure] which has a 2024 budget of $11,090,000. The total project cost (for all Authority members) is $17,746,939 and is on budget, in fact, some funds are expected to be leftover. Authority Board members can decide to roll remaining capital funds over to cover future operating expenditures to lessen future assessments. Final project costs will be known following final completion in May 2024.
This Operations Agreement will not have any direct capital budget impacts to Castle Rock, however, there will be variable operation and maintenance (O&M) costs associated with electricity for pumping, labor and expendable materials. These O&M costs will be shared by the members based on the volume of water delivered and discharged into the reservoir for the benefit of the individual members.
The Authority’s budget includes an additional $475,000 in 2024 for electrical costs and an additional $5,000 for operational costs in 2024 over the 2023 budget.
Future operating expenses will be drawn from Account Number 211-4340-443.80-61 [CC Project Water Authority] which has a 2024 budget of $150,000.
Staff Recommendation
Castle Rock Staff along with the Castle Rock Water Commission recommend that Town Council approve the resolution approving the Operating Agreement with CCPWA. Staff also recommends that Town Council approve the Operating Agreement with CCPWA.
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
Exhibit 1: Operating Agreement