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 2025 Spot Water Lease Agreement Between the Town of Castle Rock and United Water & Sanitation District
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, 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.
If Council approves this lease, up to 500 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 16, 2025 and December 31, 2025. The Town will assess a $411 per AF price for the water, with a minimum lease of 20 AF. Initial payment of $8,220 for the minimum 20 AF lease will be required 10 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 $205,500. The agreement will terminate at the end of 2025.
Budget Impact
If Council approves the agreement, Castle Rock Water would receive between $8,220 and $205,500 of additional revenue in 2025. 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
Attachment A: Resolution
Exhibit 1: Agreement