To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Mark Marlowe, P.E., Director of Castle Rock Water
David Van Dellen, P.E., assistant Director of Castle Rock Water
Roy Gallea, P.E., Engineering Manager
Scott Tait, E.I., Water Resources Project Manager
Title
Resolution Approving the E-85 Wastewater Intergovernmental Agreement Between the Town of Castle Rock Acting Through Its Water Enterprise and Dominion Water & Sanitation District Acting Through Its Sterling Ranch Wastewater Activity Enterprise and The Sterling Ranch Community Authority Board [Located in Northwestern Douglas County with the use of Douglas county’s American Rescue Plan Act Funding for this project]
Body
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Executive Summary
Castle Rock Water (CRW) is requesting Town Council approval of a Resolution (Attachment A) approving an Intergovernmental Agreement (IGA) (Exhibit 1) between CRW and Dominion Water & Sanitation District for mutual cooperation on the design and construction of the wastewater treatment and collection system for the Highway 85 corridor (the Project). The primary focus of this agreement is to provide the framework for a collaborative working relationship to design, construct, operate, maintain and invest in the infrastructure for wastewater collection & treatment and water reuse within the corridor extending from W. Happy Canyon Rd. north to W. Titan Rd. This agreement is consistent with the draft terms between Castle Rock and Dominion that were presented to Council as a part of the approval by Council on May 2, 2023, of the IGA between Castle Rock and Douglas County for Castle Rock to be the program manager for the Highway 85 corridor wastewater treatment and collection system project (the Project), see Attachment B.
Key terms of the agreement are:
• Castle Rock will implement Alternative 3 from the IGA between Castle Rock and Douglas County to provide 200,000 gallons per day on average of wastewater treatment and collection capacity and site the wastewater treatment facilities at the Chatfield Basin Water Reclamation Facility (CBWRF) site on the South Platte River.
• Dominion will provide 200,000 gallons per day of capacity in their existing collection system infrastructure (gravity line in Sterling Ranch, Titan Road Lift Station and Force Main, and other key infrastructure).
• Dominion will work to provide a permanent agreement with South Platte Renew to handle solids generated from the wastewater treatment facility for the Project so that separate solids handling facilities will not be necessary.
• Castle Rock and Dominion will jointly hire Carollo Engineers LLC to do the design for the CBWRF (the wastewater treatment plant).
• Castle Rock and Dominion will work to utilize alternative delivery methods like the construction manager at risk (CMAR) form of contracting where allowable under the ARPA funding mechanism.
• Funding for the Project will be ARPA funding from Douglas County with Dominion having the right to fund additional capacity in the system at their sole discretion.
• Castle Rock and Dominion will partner to permit wastewater discharge locations on the South Platte River and at Castle Rock Reservoirs 1 and 2.
• Castle Rock and Dominion will share ownership of a pump station to return reusable water supplies to Castle Rock Reservoirs 1 and 2 and to be determined locations for Dominion.
• Castle Rock will own, operate and maintain the Louviers Lift Station and all gravity sewer systems in the service area.
• Dominion will own, operate and maintain the CBWRF and all wastewater infrastructure downstream of the Louviers Lift Station.
• Castle Rock and Dominion will work together to determine final rates and fees for the service area based on cost of service.
• Castle Rock and Dominion will work together to develop system development fees for new development and redevelopment based on actual costs of capital infrastructure.
• Any system development fees collected for the first 200,000 gallons of capacity will all go back into building additional infrastructure for the Project. Above 200,000 gallons, the portion of the SDF related to Dominion’s infrastructure will go to Dominion and Castle Rock will put the rest of the SDF into Project infrastructure (minus the 10% extraterritorial charge which Castle Rock will keep).
• The order of the use of the $26.8M in ARPA funding in terms of priority will be Louviers Lift Station and Force Main, verification of capacities in Dominion’s existing infrastructure, 400,000 gallons per day of wastewater treatment capacity and reuse pump station capacity, and design of the gravity system south of Louviers and additional capacity in the overall system.
• Castle Rock can provide service beyond the 200,000 gallons of capacity if customers in the service area pay all SDFs; build any needed infrastructure; meet Castle Rock’s, Dominion’s, and SPR’s rules and regulations; and for new development or redevelopment have a renewable water supply.
• At Castle Rock’s sole discretion, Castle Rock can use excess capacity in Castle Rock’s system to purify reuse water supplies for Dominion.
• Dominion will be given the opportunity to purchase capacity in the future reconstruction of Castle Rock’s Ravenna pipeline.
The key terms of the agreement include phasing of the Project. Phase 1 will be funded by Douglas County through $26.8 Million in American Rescue Plan Act (ARPA) funding.
Phase 2 will entail the design and construction of a gravity sewer line towards Sedalia that will be funded by SDFs collected from new development and redevelopment occurring after January 1, 2023.
A summary of known Phase 1 project costs and future estimated costs associated with this agreement are shown below:
|
Task |
ARPA Fund Estimates (Alternative 3) |
Actual Costs |
|
Engineering Fee |
$1,750,000.00 |
$4,874,000.00 |
|
Construction and Easement Costs |
$23,282,000.00 |
$20,158,000.00 |
|
CRW Project Management Fee (1%) |
$268,000.00 |
$268,000.00 |
|
Contingency |
$1,500,000.00 |
$1,500.000.00 |
|
Total Cost |
$26,800,000.00 |
$26,800,000.00 |
Staff Recommendation
Staff recommends approval of the E-85 Wastewater IGA between the Town of Castle Rock acting through its water enterprise and Dominion Water & Sanitation District acting through it Sterling Ranch Water Activity Enterprise and the Sterling Ranch Community Authority Board.
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: Douglas County - Castle Rock IGA
Attachment C: Service Area Map