To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Mark Marlowe, Director of Castle Rock Water
Mark Henderson, Assistant Director of Castle Rock Water
Lauren Moore, Water Resources Manager
Title
Resolution of the Town of Castle Rock Approving the Cherry Creek Project Water Authority Walker Expansion Project Participation Agreement [Douglas County near Franktown]
Body
________________________________________________________________________________
Executive Summary
Castle Rock Water (CRW) seeks Town Council approval of a Resolution (Attachment A) for the Walker Reservoir Expansion Project Participation Agreement (Exhibit 1) with the Cherry Creek Project Water Authority (CCPWA) and its members. The agreement would expand Walker Reservoir from approximately 650 acre-feet (AF) to 1,000 AF. Inverness Water and Sanitation District, Denver Southeast Suburban Water and Sanitation District (Pinery), and Cottonwood Water and Sanitation District will be the participating members in the agreement and will fund their proportional share of the expansion project costs based on their proportional share of the 350 AF expanded volume. The Town is a non-participating member in the agreement and will not obtain additional capacity in the reservoir or share in the costs for the expansion project design and construction. The Town retains its 150 AF of storage capacity and its existing water rights and ownership vested in the CCPWA is unaffected by the agreement. CRW specifically agreed to abstain from participation in this expansion as part of the agreement with the Pinery to purchase 250 AF of the Pinery’s Water Infrastructure Supply Efficiency (WISE) project water.
The agreement protects Castle Rock’s use of CCPWA water rights and shared facilities, provides compensation for calculated water volumes Castle Rock cannot divert and store during construction, and allows Castle Rock to lease all or part of that calculated volume to the Pinery. It also requires an amended operations agreement addressing storage allocations, operating responsibilities, and protection of each member’s rights.
Budget Impact
Since the Town is non-participating member in the expansion, the Town will not incur any expenses related to the expansion project. The Town’s existing financial obligations remain governed by the existing operating agreement and CCPWA policies. Future reservoir and shared-facility operating and capital cost allocations must be addressed in the amended operations agreement.
Castle Rock would receive construction-period lease revenue from Pinery and/or compensation from the Participating Members for the accounted calculated missed volume. The calculated missed volume and lease revenue will depend on when renewable water rights are in-priority, exchange availability, and legal and physical operating limitations. Construction is anticipated to take approximately 9 to 12 months. The Town’s reusable return flows accruing to Cherry Creek at the Pinery Wastewater Treatment Outfall generate approximately 0.5 AF per day and based on modeling up to 155 AF of renewable water supply could be available to store in Walker Reservoir in a calendar year. Therefore, if construction lasted a full year, the calculated missed volume could be up to 337.5 AF resulting in total lease revenue of $190,350. However, actual revenue would depend on the timing and duration of the construction, when renewable water rights are in-priority, and the availability of exchange potential in Walker Reservoir for the reuseable flows from the Pinery Wastewater Treatment Outfall.
Staff Recommendation
Staff recommends approval of the Walker Reservoir Expansion Project Participation Agreement to preserve Castle Rock’s existing storage and operational interests, establish compensation during construction, and allow the other CCPWA members to fund additional storage.
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: Walker Reservoir Expansion Project Participation Agreement