To: Members of the Castle Rock Water Commission
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]
Town Council Agenda Date: June 6, 2022
Body
________________________________________________________________________________
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 staff recommends approval of this 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. The anticipated water demand and wastewater generation rate for the church is relatively small - approximately 785,000 gallons per year of water demand (includes indoor use, outdoor use and fire protection) and 220,000 gallons per year of wastewater generation. 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. 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” domestic water service connection and 1.5” irrigation connection. Fees and charges are estimated as follows and will be updated annually in accordance with changes to rates and fees approved by Council based on our annual rates and fees study:
1. System Development Fees (based on two 1.5” metered connections @ 3.33 SFEs ea.)
Water (2 x $18,894) = $37,788
Renewable Water (2 x $87,888) = $175,776
Subtotal = $213,564
10% Surcharge on above = $21,356
Total W and WR SDFs = $234,920
Wastewater (1 x $16,299) = $16,299
25% surcharge on WW SDF = $4,075
Total SDFs = $255,294
2. Monthly Charges (subject to annual updates by Council)
Water service charge (2 x $18.78) = $37.56
Renewable water service charge (2 x 193.13) = $386.26
Subtotal $423.82
10% Surcharge on above = $42.38
Wastewater service charge = $19.78
25% surcharge on above = $5.94
Total monthly service charges = $491.92
Note: These costs are estimates and need to be verified with CBC’s plans for water service. Volumetric charges will apply based on usage.
Staff Recommendation
Staff recommends approval of the Extraterritorial Water and Wastewater Service Agreement with the Castleview Baptist Church.
Proposed Motion
“I move to recommend to Town Council approval of the above Resolution as presented”
Attachments
Attachment A: Resolution (Not Attached)
Exhibit 1: Agreement
Attachment B: Location Map
Attachment C: Utility Plan