To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Mark Marlowe, P.E., Director of Castle Rock Water
Matt Benak, P.E., Water Resources Manager
Zuzana Howard, Water Resources Program Analyst
Title
Resolution Approving a Spot Water Lease Agreement between the Town of Castle Rock and Bow Mar [Chatfield Reservoir, Douglas County]
Body
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Executive Summary
Castle Rock Water is seeking Town Council approval of a resolution (Attachment A) for a spot water lease with Bow Mar Owners, Inc. and Bow Mar South, Inc. (Bow Mar). As the Town is not currently able to fully utilize excess storage supplies in Chatfield, Bow Mar wishes to lease some of the Town’s surplus water stored in Chatfield Reservoir for use in their Substitute Water Supply Plan (SWSP). The leased water will be used by Bow Mar to replace inflow diversions made to the Patrick, Upper Tule, and Lower Tule Reservoirs from the South Platte River in 2024. While the Town currently owns 719acre feet (AF) of storage in Chatfield, the Colorado Water Conservation Board (CWCB) allows for rental of the remaining permitted amount, for a total of 2,000 AF of storage. The Town currently has approximately 1,996 AF of water stored in the reservoir with additional reusable supplies coming in each day.
If Council approves this lease, up to 115 AF of water would be released from the Town’s Chatfield Reservoir storage into the main stem of the South Platte River. This release would occur between June 1, 2024 and October 31, 2024. The Town will assess a $405 per AF price for the water, with a minimum lease of 20 AF. Initial payment of $8,100 for the minimum 20 AF will be required within 30 days from approval of this lease, with the remaining quantity to be paid upon subsequent releases. The potential revenue for this lease is up to $46,575. The agreement will terminate at the end of 2024.
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