To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Mark Marlowe, P.E., Director of Castle Rock Water
Mark Henderson, P.E., Assistant Director of Castle Rock Water
Lauren Moore, Water Resources Manager
Title
Resolution Approving the First Amendment to Water Rights Brokerage Agreement Between the Town of Castle Rock and Stillwater Resources & Investments, Inc.
Body
________________________________________________________________________________
Executive Summary
Castle Rock Water is seeking Town Council approval of a resolution (Attachment A) to amend a Water Rights Brokerage Agreement between the Town and Stillwater Resources & Investments, Inc. (Stillwater). This First Amendment (Exhibit 1) is to extend the term of the agreement and apply to water rights opportunities that the Town is investigating in the Lost Creek basin located in Weld County. These water rights would complement the Town’s existing Lost Creek wells and Box Elder project. Stillwater has been operating as the Town’s water rights broker since 2013. The existing agreement was executed on January 19, 2024 with a two-year term and would expire on January 19, 2026. Castle Rock Water continues to investigate additional water rights opportunities to support the Box Elder project. The proposed amendment adds an additional two-years to the term of the agreement to allow Stillwater to investigate, recommend, and prepare terms of agreement for acquisition of additional water rights opportunities.
Budget Impact
The budget impact is variable and dependent on the total of amount of water rights acquired and the final purchase price. Based on the total amount of water rights currently being investigated the brokerage fee could be up to $1M. The 2026 budget includes $500,000 for water rights acquisition in Account 211-4375-443.75-47. Depending on the timing and the final purchase price a budget amendment or budget transfer may be pursued as necessary to complete an acquisition.
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: First Amendment to the Agreement