To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Mark Marlowe, P.E., Director of Castle Rock Water
Lauren Moore, Water Resources Manager
Zuzana Howard, Water Resources Project Analyst
Title
Resolution Approving the Water Lease Agreement Between the Town of Castle Rock and Central Colorado Water Conservancy District
Body
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Executive Summary
Castle Rock Water (CRW) is seeking Town Council approval of a Resolution (Attachment A) authorizing a Water Lease Agreement (Exhibit 1) with Central Colorado Water Conservancy District (Central) to lease the Town’s Rothe Recharge Credits acquired with the purchase of the Rothe water rights in 2014. Town Council previously approved the Intergovernmental Agreement Re Sublette Recharge and Chatfield Project (Project IGA) on September 17, 2024, under which the Town may provide Central with 1.5 acre-feet of Town Credits annually for each 1 acre-foot of Central’s stored water right in Chatfield Reservoir; however, in periods when Central does not have sufficient water stored in Chatfield Reservoir for the Project IGA to function as intended, the Water Lease Agreement provides an alternative mechanism to meet Central’s augmentation needs. The Town will not be able to use the Rothe Recharge Credits in the coming year, and the water cannot be reasonably moved by exchange back upstream to the Town of Castle Rock.
Central proposes to lease up to 491.9 acre-feet (AF) of the recharge credits for use as a projection tool supporting pumping from the hundreds of wells included in its augmentation plan thru March 31, 2027. The Town will charge $140 per acre-foot, for a total lease value of up to $68,866, which is reasonable for water of this type and location based on available data from comparable leases in the area.
Budget Impact
If Council approves this Water Lease Agreement, Castle Rock Water would receive up to an additional $68,866 in revenue over the next year. 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
Staff Report
Attachment A: Resolution
Exhibit 1: Agreement
Attachment B: Location Map