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 2024 Spot Water Lease Agreement between the Town of Castle Rock and Castle Pines Metropolitan District [Castle Rock, Douglas County]
Body
________________________________________________________________________________
Executive Summary
Castle Rock Water is seeking Town Council approval of a resolution (Attachment A) for a spot water lease with Castle Pines Metropolitan District (Castle Pines). In accordance with the Plum Creek Water Reclamation Authority (PCWRA) Establishing Agreement dated January, 1990 and the Intergovernmental Agreement (IGA) between the Town and Castle Pines dated March 21st, 2022, Castle Rock Water is required to provide certain amounts of reusable water supplies for use by the Castle Pines Golf Courses (Castle Pines Golf Club and the Country Club at Castle Pines). In 2024, Castle Rock Water is required to deliver up to 93 acre-feet (AF) of reusable effluent for use by the golf courses. Castle Pines has determined that additional reusable water supplies may be necessary
In anticipation of drought conditions this year as well as an upcoming PGA Tour golf tournament hosted by Castle Pines Golf Club, Castle Pines wishes to lease some of the Town’s fully reusable effluent from PCWRA that would otherwise be stored in Castle Rock Reservoir No. 1 (CRR1) or Chatfield Reservoir. While the Town currently owns 719 AF of storage in Chatfield, the Colorado Water Conservation Board (CWCB) allows for rental of the remaining permitted amount, for a total of 2,000 AF of storage. The Town currently has approximately 2,000 AF of water stored in the reservoir and 100 AF of water stored in CRR1 with additional reusable supplies expected to increase substantially with spring runoff.
If Council approves this lease, up to 522 AF of additional water may be released from the Town’s PCWRA fully reusable effluent and pumped directly from PCWRA for use at Castle Pines Golf Club. This release may occur between May 1, 2024 and December 31, 2024. The Town will assess a $202.50 per AF price for the water for the first 160 AF of deliveries. This is a discount from our typical lease rate. This discounted rate is proposed because as part of the 2022 IGA with Castle Pines, Castle Rock receives all of Castle Pines winter effluent at no cost. This is expected to be 160 AF in 2024. The remaining deliveries of up to 362 AF will be accessed at the Town’s current lease rate of $405/AF. The potential revenue for this lease is up to $179,010. The agreement will terminate at the end of 2024.
Budget Impact
If Council approves the agreement, Castle Rock Water would potentially receive up to $222,750 of additional revenue in 2024. 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 resolution as presented.
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