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 the Second Amendment to the Intergovernmental Agreement IGA) for Water Service between the Dominion Water and Sanitation District, Acting in its Capacity as a Water Activity Enterprise, and the Town of Castle Rock, Acting Through the Town of Castle Rock Enterprise [Northwest Douglas County, Colorado]
Body
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Executive Summary
Castle Rock Water is seeking Town Council approval of a Resolution (Attachment A) amending the 2014 Water Service Intergovernmental Agreement (IGA) (see Exhibit 1) between Castle Rock and Dominion Water and Sanitation District (Dominion). The purpose for amending this agreement is to add two additional water supplies to the IGA. The quality of this water will be exactly the same as what the Town receives as part of its WISE deliveries at the Ray Waterman Water Treatment Facility.
Key aspects of the amended IGA include:
• Changes to Section 4 - The addition of two water sources: The “Aurora 250 Water” and the “Aurora 570 Water”.
• Adjusting the standby fee in recognition of a May 1, 2025 water delivery date.
Adding a notice provision whereby Dominion would provide at least 48 hours’ notice to Castle Rock for any flow change requests.
The rate that Castle Rock will charge Dominion to wheel water through its system has been recalculated and is $0.37 per 1,000 gallons.
Budget Impact
The Wheeling Agreement has positive impacts to the Water Resources budget by providing a revenue stream. At the currently calculated Dominion wheeling rate of $0.37 per 1,000 gallons, the Town could receive nearly $99,000 in revenue by moving 820 acre-feet of water for Dominion. Additionally, the Town receives 5% of the water that Dominion requests through the Town’s system.
Staff Recommendation
Staff recommends Town Council approve the second amendment to the Water Service IGA.
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
Attachment A: Resolution
Exhibit 1: Amended IGA
Exhibit B-2 of Exhibit 1: Additional Water Sources