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
Lauren Moore, Water Resources Project Manager
Title
Resolution Approving the Water Lease Agreement between the Town of Castle Rock and the Town of Wiggins [Morgan County, Colorado]
Body
________________________________________________________________________________
Executive Summary
Castle Rock Water is seeking Town Council approval of a Resolution (Attachment A) for a Water Lease Agreement with the Town of Wiggins (Wiggins), which is located in Morgan County, Colorado. Wiggins is interested in entering into another Water Lease Agreement of our Rothe Recharge Credits which came with Castle Rock’s purchase of the Rothe water rights in 2014. Wiggins entered into the original three-year lease agreement on January 5, 2016 with subsequent renewals and an additional two-year lease. Their current lease terminates on June 30, 2024. The new lease term will be for one year with 584 AF of lease water available. Wiggins intends to use this water to augment their tributary well pumping while they proceed through water court on other augmentation sources. The Town of Castle Rock will not be able to use this water in the next year and the water cannot be reasonably moved by exchange back upstream to the Town of Castle Rock.
Wiggins wishes to lease 584 AF at $135 per acre-foot for a total price of $78,840. The price is reasonable for leased water of this type at this location based on available data regarding other leases in the area. Either party may terminate the agreement with 180 days’ notice.
Budget Impact
If Council approves the 2024 Water Lease Agreement, Castle Rock Water would receive an additional $78,840 in revenue over the next year. The revenue will be deposited into the Water Resources Fund Capital Leases account 211-4375-393.70-00.
Staff Recommendation
Staff recommends approval of the water lease agreement with the Town of Wiggins for 584 AF of water over the next year which will generate a revenue of $78,840.
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: Agreement
Attachment B: Location Map