To: Members of the Castle Rock Water Commission
From: Mark Marlowe, P.E., Director of Castle Rock Water
Nichol Bussey, Business Solutions Manager
Title
Resolution Approving Changes to the Castle Rock Water Grease Interceptor Assistance Program [Town-wide program]
Town Council Agenda Date: May 16, 2023
Body
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Executive Summary
The purpose of this memorandum is to request Council approval of a Resolution (Attachment A) to approve the revised Grease Interceptor Assistance Program offered by Castle Rock Water. Section 13.04 of the Town of Castle Rock Municipal Code requires all connectors to the sewer system to comply with the Code of Rules and Regulations of the Plum Creek Water Reclamation Authority (PCWRA). Grease interceptors are required under PCWRA’s rules. The cost to retrofit existing businesses in older buildings with grease interceptors can be costly, placing a burden on small businesses. To this end, in 2021, Castle Rock Water staff developed an assistance program to help mitigate the costs of retrofitting an existing building with a grease interceptor. Castle Rock Water staff is proposing to revise the assistance program to increase the funds available to Castle Rock businesses with total grant opportunities from $7,500 to $15,000 per location and an additional 5-year loan option per location from $7,500 to $20,000 per customer. The total annual budget for this program is proposed to go from $40,000 to $60,000.
Notification and Outreach Efforts
Letters outlining the original grease interceptor assistance program were mailed directly to affected Castle Rock businesses in June and July of 2021. In addition, information about the program has been posted on thecrgov.com/crwatercares <https://crgov.com/2954/Castle-Rock-Water-Cares> web page since June 2021. To date, three local Castle Rock businesses have received funding from the program, and an additional two businesses have been approved for funding but have not yet completed their projects.
If this resolution is approved, staff will mail letters to affected Castle Rock businesses to notify them of the changes to the assistance program. Information on the crgov.com/crwatercares <https://crgov.com/2954/Castle-Rock-Water-Cares> web page will also be updated to reflect the changes.
History of Past Town Council, Boards & Commissions, or Other Discussions
On February 26, 2020, Castle Rock Water Commission recommended approval of a new grease interceptor ordinance, Ordinance 2020-004 to clarify rules regarding Grease Interceptors required through Plum Creek Water Reclamation Authority.
On April 21, 2020, Town Council approved a new grease interceptor ordinance, Ordinance 2020-004 to clarify rules regarding Grease Interceptors required through Plum Creek Water Reclamation Authority.
In June of 2021, CRW Staff identified a grease interceptor assistance program to Council and began to use the program.
Discussion
Outdoor grease interceptors are required for all food service facilities in Castle Rock. The requirements are in the PCWRA Code of Rules and Regulations, and by Town code, sewer service within Castle Rock must be provided in accordance with these regulations. The installation of grease interceptors on existing buildings can be costly, placing a burden on small businesses.
In 2021, Castle Rock Water implemented a grease interceptor assistance program to help defray the costs associated with installing grease interceptors on existing buildings in Castle Rock. This program has provided up to four (4) grants per year up to $7,500 per grant for 50% of the cost and installation of a grease interceptor. This grant could also be supplemented by a loan up to an additional $7,500, for a maximum total town financial assistance of $15,000 or 50% of the cost and installation of the grease interceptor, whichever was less. If used, the loan is paid back on the customer’s water bill over five (5) years at an annual percentage rate of 2.54%. Funding of each grant is split between the Town of Castle Rock General Fund for $5,000 and Castle Rock Water for $2,500.
Castle Rock Water is proposing to increase the limits of the assistance to provide up to four (4) grants per year up to $15,000 per grant for 50% of the cost and installation of a grease interceptor. This grant could be supplemented by a loan up to an additional $20,000, for a maximum total town financial assistance of $35,000 or 50% of the cost and installation of the grease interceptor, whichever is less. If taken, the loan will be paid back on the customer’s water bill over five (5) years at an annual percentage rate of 2.54%. Funding of the grant would be split between the Town of Castle Rock General Fund for $5,000, and Castle Rock Water for $10,000.
Castle Rock businesses must meet the following criteria to qualify for the assistance program:
1. The property or building where the business is located must be at least 20 years old. Newer buildings have been under the requirement for grease interceptors so property owners had every opportunity and the requirement to install at the time of construction.
2. The business must have a stand-alone physical and publicly accessible location within the Town of Castle Rock and be a Castle Rock Water customer with an active water billing account.
3. The business must be engaged in activities legal under all applicable laws.
4. The business must be registered with the Colorado Secretary of State’s Office.
Budget Impact
The current budget includes $40,000 for the assistance program. Castle Rock Water will request a second quarter budget amendment to increase the available funds under GL account 213-4500-445-80-97 for $60,000 to cover up to four grants per year. Castle Rock Water will then fund GL account 213-4500-445-80-97 for $60,000 each year as long as the assistance program is in place. There would be no impact to the Town of Castle Rock General Fund GL account 111-1300-413-80-41 as the funds provided by the General Fund are not changing. Loan funds would be provided from GL account 213-0000-115-25-00 but because this is an accounts receivable account and the loan funds are paid back over time, there is not a budget impact to this account.
Staff Recommendation
Staff recommends Council approval of the Resolution as presented.
Proposed Motion
“I move to recommend to Town Council approval of the Resolution as presented”
Attachments
Attachment A: Resolution (Not Attached)