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 between the Town of Castle Rock and Crowfoot Valley Ranch Metropolitan Districts No. 1 and 2 Regarding the Monitoring and Enforcement of Town Conservation Regulations
Body
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Executive Summary
The purpose of this memorandum is to request Council approval of a resolution (see Attachment A) approving an Intergovernmental Agreement Between the Town of Castle Rock and Crowfoot Valley Ranch Metropolitan District Nos. 1 and 2 (Districts) regarding the monitoring and enforcement of Town Conservation Regulations. In June 2005, the Town entered into an extraterritorial water service intergovernmental agreement (IGA) with the Districts whereby the Town would be the exclusive water service provider to Canyons South. The water conservation provisions within this agreement (Article V of IGA) require that the Town shall provide the Districts with contractual monitoring and enforcement of the conservation regulations at a nominal cost in order to ensure uniform application of the regulations between the development and properties within the Town. This service agreement will fulfill that requirement. The Districts’ boards approved this contract on March 10, 2021.
History of Past Town Council, Boards & Commissions, or Other Discussions
On June 8, 2005, Town Council approved a resolution for the water service agreement with Canyons South obligating the Town to provide extraterritorial water service to Canyons South for up to 968 single family equivalents (SFEs). This agreement requires that the developer construct all water infrastructure internal to the development and transfer ownership of the water infrastructure to the Town, which the Town will then own, operate and maintain. Water service charges and fees will be charged at 110% of the levels established in Water Regulations. In conjunction with this water service agreement, Town Council also approved, under separate resolution, a water purchase agreement whereby Canyons South dedicated 2,746 acre-feet (AF) Denver Basin groundwater to the Town, which included a surplus amount of 1,396 AF purchased at a price of $415,090. In essence, the Town acquired all of the groundwater associated with Canyons South, minus 465 AF reserved by the developer for a then proposed golf course.
On January 22, 2020, the Castle Rock Water Commission voted to recommend to Council approval of an extraterritorial wastewater service agreement since the Town was already committed to water service from the 2005 IGA.
On March 3, 2020, Council approved an extraterritorial wastewater service agreement with Canyons South since the Town was already committed to water service from the 2005 IGA.
Discussion
This IGA fulfills an obligation under the water service agreement and will help ensure that the Canyons South development (“Property”) conforms to the same water conservation requirements required by all Castle Rock Water customers. The key terms of this agreement are summarized as follows:
• The Property will receive conservation monitoring and enforcement services to the same standards and be subject to the same requirements as properties within the Town;
• The provision of conservation and monitoring enforcement services will be governed by the Conservation Regulations as they evolve during the term of the IGA;
• The Town and the Districts hereby affirm their commitment as set forth in Section 5.01 of the Water Service IGA that all Conservation Regulations shall apply to the Property;
• The Town agrees to monitor and enforce the Conservation Regulations within the jurisdictional boundaries of the Districts;
• The Districts shall require each Property Owner to obtain the Town’s approval for all landscaping and irrigation plans and irrigation permits, to pay all Irrigation Permit Fees, Residential Irrigation and Landscape Inspection Fees, and such other Town fees and charges as may be required by the Conservation Regulations; and
• The Districts will promptly adopt and, at all times during the term of this IGA, maintain in force the Conservation Regulations for application to the Property.
Staff recommends approval of this IGA to ensure water conservation requirements are met in the Canyons South development.
Budget Impact
The costs for monitoring and enforcement of the conservation regulations will be offset by the fees charged for such services. Assuming an absorption rate of 100 homes per year, the annual expenses and revenues will be approximately $8,000 to $10,000 for both revenue and expenditures. Non-residential irrigation permit fees could add another $5,000 to $10,000 in both revenue and expenditure. These costs will be accounted for in the annual budgeting process.
Staff Recommendation
Staff recommends approval of this service contract between the Town and Crowfoot Valley Ranch Metropolitan District Nos. 1 and 2.
Proposed Motion
“I move to approve the Resolution as introduced by title.”
Attachments
Attachment A: Resolution
Exhibit 1: Agreement