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 Program Analyst
Title
Resolution Approving the Town of Castle Rock/Colorado Parks and Wildlife Spot Water Lease Agreement [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 Colorado Parks and Wildlife (CPW). In anticipation of drought conditions this summer, CPW wishes to lease some of the Town’s surplus water stored in Chatfield Reservoir to fill the hatchery settling ponds as well as the Dog Off Leash Area ponds located with Chatfield’s recreation area. While the Town currently owns 848 acre-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 upwards of 1,600 AF of water stored in the reservoir with additional reusable supplies coming in each day.
If Council approves this lease, up to 200 AF of water would be released from the Town’s Chatfield Reservoir storage account directly into the fish hatchery pond gate and/or a book over to CWP’s Chatfield Storage will occur. This release would occur between March 24 and December 31, 2026. The Town will assess a $420 per AF price for the water with a minimum lease of 200 AF. The 2026 lease rate was increased by the Consumer Price Index (CPI) based on 2.1% annual increase from $411 per AF in 2025. The payment will be due upon total quantity released. The potential revenue for this lease is up to $84,000. The agreement will terminate at the end of 2026.
Staff Recommendation
Staff recommends approval of the resolution as presented.
Proposed Motion
“I move to approve the Resolution as introduced by title.”
Attachments
Attachment A: Resolution
Exhibit 1: Agreement