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 Morre, Water Resources Manager
Zuzana Howard, Water Resources program Analyst
Title
Resolution Approving the 2026 Water Lease Agreement Between the Town of Castle Rock and Riverview Farms
Body
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Executive Summary
Castle Rock Water (CRW) is seeking Town Council approval of a Resolution (Attachment A) authorizing a Water Lease Agreement (Exhibit 1) with Riverview Farms, LLC (Riverview) to lease the Town’s Rothe Recharge Credits acquired with the purchase of the Rothe water rights in 2014. Riverview wishes to lease 75 acre-feet (AF) of the recharge credits to offset shortages in the Sublette Augmentation Plan. The augmentation plan has three participants: Town of Castle Rock, Sublette, LLC and Riverview Farms, LLC. Due to the lack of precipitation, there were no water inflows this Water Year. As a result of that, both Sublette and Riverview Farms experienced recharge credits shortages.
The Town will charge $140 per acre-foot, for a total lease value of $10,500, which is reasonable for water of this type and location based on available data from comparable leases in the area. The Town will not be able to use the Rothe Recharge Credits in the coming year, and the water cannot be reasonably moved by exchange back upstream to the Town of Castle Rock.
Budget Impact
If Council approves this Water Lease Agreement, Castle Rock Water would receive $10,500 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 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
Attachment B: Location Map