To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Mark Marlowe, P.E., Director of Castle Rock Water
Tim Friday, P.E., Assistant Director of Castle Rock Water
Title
Resolution Approving an Extraterritorial Water and Wastewater Service Agreement with Castleview Baptist Church, Inc. [Crowfoot Valley Road near Macanta Development]
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 Extraterritorial Water and Wastewater Service Agreement with Castleview Baptist Church, Inc. (CBC). This property is located outside the Castle Rock town limits and lies in unincorporated Douglas County adjacent to the Macanta development on Crowfoot Valley Road (see Attachment B). Castle Rock Municipal Code (13.12) authorizes the extension of water and/or wastewater service to properties outside the municipal boundaries through an extraterritorial service contract approved by Town Council. Code allows Council to add up to a 25% surcharge to the standard rates and fees for any extraterritorial service contract.
The property owner will install the infrastructure required to make the connection (see Attachment C), and will pay applicable system development fees and monthly service charges. A 10% extraterritorial service surcharge is recommended to apply to all water fees and charges and a 25% extraterritorial service surcharge is recommended to apply to all wastewater fees and charges. These surcharges are consistent with the surcharges applied to the Macanta development customers and Bell Mountain Ranch customers.
CBC will meet all of the requirements including ColoradoScaping of landscape, dedication of significantly more groundwater than needed to serve the church, and dedication of renewable water requirements that would be necessary if this was an annexation. The primary benefit of this agreement to Castle Rock Water is that CBC will extend a transmission water main up Crowfoot Valley Road at their cost (a value of hundreds of thousands of dollars) that may allow future regional water connections with Parker Water and Sanitation District and Pinery Water and Sanitation District. These types of regional connections will strengthen the reliability and redundancy of Castle Rock Water’s water system in the long term. Based on this benefit and the other aspects of this agreement, staff recommends approval of this agreement.
History of Past Town Council, Boards & Commissions, or Other Discussions
On May 25, 2022, the Castle Rock Water Commission voted unanimously to recommend that Council approve this extraterritorial agreement.
Discussion
A representative of CBC initially contacted the Town in 2020 to inquire about connecting to the Town’s water main being constructed in Crowfoot Valley Road for the Macanta development. In September 2021, CBC returned in earnest to pursue water and wastewater service from the Town. Given the church property location, extending the water main further along Crowfoot Valley Road will lend itself well to a future regional connection to either Parker Water and Sanitation District or the Pinery Water and Wastewater District, or both. This will be a significant benefit for Castle Rock Water. The estimated investment in the water main extension will be $192,000. CBC also will need to dedicate all of the groundwater underlying the CBC property as would be typical for any new annexation or new development. The property has significantly more groundwater than is required to provide service, with the typical dedication requirement being 2.65 acre feet for this project. CBC will bring over 27 acre feet of groundwater to the project. In addition, CBC will be required to dedicate renewable water or at least satisfy this code requirement. Castle Rock Water has identified a project in which CBC can invest to meet actual renewable water demands of 2.41 acre feet per year.
The anticipated water demand and wastewater generation rate for the church is relatively small - approximately 446,000 gallons per year of water demand (includes indoor use, outdoor use and fire protection) and 200,000 gallons per year of wastewater generation. No turf will be installed as part of the project, and instead the project will be ColoradoScaped to keep outdoor water usage to a minimum. For the initial phase of the project, CBC will construct an on-site wastewater treatment system (OWTS) for handling Phase 1 wastewater. During Phase 2 (expected to start in 2024), CBC will construct a force main and gravity sewer to connect to the Town’s wastewater system within the Macanta development, and consequently abandon the OWTS per the terms of the agreement. The OWTS must be abandoned by December 31, 2024 per the agreement. Wastewater treatment will be provided by the Pinery Water and Wastewater District under the terms of an existing wastewater service agreement between the Town and the Pinery for serving the Macanta development.
Budget Impact
The revenues associated with this service agreement will include system development fees and monthly service charges. These costs will be assessed assuming a 1.5-inch domestic water service connection and ¾-inch irrigation connection. Fees and charges are estimated based on these service sizes and an annual water demand of 446,000 gallons (1.37 acre-feet), see Attachment D for estimated fees and charges.
Staff Recommendation
Staff recommends approval of the Extraterritorial Water and Wastewater Service Agreement with the Castleview Baptist Church.
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
Attachment B: Location Map
Attachment C: Utility Plan
Attachment D: Estimated Fees and Charges