To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Mark Marlowe, P.E., Director of Castle Rock Water
Title
Resolution Approving an Intergovernmental Agreement with Plum Creek Water Reclamation Authority for Bond Repayment
Body
________________________________________________________________________________
Executive Summary
Castle Rock Water (CRW) is seeking Town Council approval of a resolution (Attachment A) approving an intergovernmental agreement (IGA) (Exhibit 1) with Plum Creek Water Reclamation Authority (PCWRA), Castle Pines Metropolitan District and Castle Pines North Metropolitan District on how to finance and split costs for a reuse reservoir and pump station rehabilitation and replacement project. PCWRA owns and operates a reuse reservoir, which supplies reclaimed effluent from the wastewater treatment facility that is used as irrigation water at local golf courses including Red Hawk Ridge Golf Course in the Town of Castle Rock. The reservoir requires major rehabilitation including new liner, aeration system, pump station, and other improvements. In order to finance the project, PCWRA and its members are pursuing a loan of up to $8.5 million from the Colorado Water Resources and Power Development Authority (CWRPDA).
Repayment of the loan (referred to as bond repayment in the IGA based on governmental agency bonds sold by CWRPDA) and funding of the project in general will be based on the cost allocation of the members of PCWRA according to each entity’s proportional share of use of the non-potable reuse reservoir. There are four golf courses that utilize the non-potable reuse water from PCWRA for irrigation. Responsibility for the cost of the rehabilitation is split evenly amongst the four golf courses. CRW, as the water provider for Red Hawk Ridge Golf Course, will be responsible for 25% of the cost of the reuse reservoir project. CRW will determine if utilizing funding from the loan or cash funding the project is most beneficial to CRW and Red Hawk Ridge Golf Course once the interest rate for the loan has been determined. The planned schedule for the project is to obtain approval from the CWRPDA for the loan in the fall and start construction soon thereafter. Information on the loan including the interest rate should be available XXX. This resolution is to approve the IGA among the PCWRA members regarding the terms and obligations of the members participation in the project and for the cost-share and repayment of the loan.
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: Intergovernmental Agreement
Attachment B: Repayment Schedules for Red Hawk Golf Course