To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Mark Marlowe, P.E., Director of Castle Rock Water
Lauren Moore, Water Resources Manager
Zuzana Howard, Water Resources Program Analyst
Title
Resolution Approving the 2026 Spot Water Lease Agreement Between the Town of Castle Rock and United Water and Sanitation District [Chatfield Reservoir, Douglas County]
Body
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Executive Summary
Castle Rock Water is seeking Town Council approval of a resolution (Attachment A) for a spot water lease with United Water & Sanitation District (United). United wishes to lease some of the Town’s surplus water stored in Chatfield Reservoir to augment their downstream reservoir diversions from the main stem of the South Platte River. While the Town currently owns 848-acre feet (AF) of storage in Chatfield and intends to purchase an additional 129 AF in 2026, 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 1,750 AF of water stored in the reservoir.
If Council approves this lease, up to 200 AF of water would be released from the Town’s Chatfield Reservoir storage account into the main stem of the South Platte River. This release would occur between April 22, 2026 and December 31, 2026. The Town will assess a $420 per AF price for the water, with a minimum lease of 20 AF. Initial payment of $8,400 for the minimum 20 AF lease will be required 30 days from approval of this lease, with the remaining quantity to be paid upon subsequent releases. The potential revenue for this lease is up to $84,000. The agreement will terminate at the end of 2026.
Budget Impact
If Council approves the agreement, Castle Rock Water would receive between $8,400 and $84,000 of additional revenue in 2026. 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
Attachment B: Agreement