To: Honorable Mayor and Members of Town Council
From: Mark Marlowe, P.E., Director of Castle Rock Water
Title
Resolution Adopting the 2017 Water Master Plan
Body
________________________________________________________________________________
Executive Summary
Castle Rock Water staff requests that Town Council approve a Resolution (Attachment A) adopting the 2017 Water Master Plan (Exhibit 1). The 2017 Water Master Plan (WMP) presents findings and recommendations resulting from a reassessment of water program needs for the Town of Castle Rock through 2055. This 2017 plan builds on the previous master planning efforts, integrates with Castle Rock Water’s Water Resources Master Plan, Wastewater Master Plan, Stormwater Master Plan, and overall Strategic Plan, but is also a stand-alone document.
Currently the Town of Castle Rock Water system, which serves a population of over 62,000, has more than 14,380 system valves, more than 3,800 fire hydrants, is over 348 miles in total length, and treats and distributes on average in excess of 7.1 million gallons of potable water each day to the residents of Castle Rock. The 2016 peak day for treatment was 15.5 million gallons per day (MGD). At an estimated build-out population, the distribution system could serve more than 155,000 residents. In order to plan for varying scenarios, Castle Rock Water has identified that projected demands could be as low as 11,800 acre feet (AF) under the low-case water conservation scenario of 100 gallons per capita per day (gpcd), and 105,200 people versus 23,000 AF under a high-case water conservation scenario of 135 gpcd with 155,000 people.
The following principles serve as the base for the Town’s water programs:
Principle 1: Protect People, Property and the Environment
Principle 2: Plan for the Future
Principle 3: Encourage Coordination of Infrastructure Needs
Principle 4: Operate the Water Enterprise Fund as a business, balancing revenue and expenses
Principle 5: Provide for effective long-term operation and maintenance of water system facilities
Principle 6: Ensure water planning is consistent with, and considered part of, a fully integrated
total water management approach
Much of the effort to revise the Water Master Plan for 2017 was to revisit the hydraulic planning model based on future and evolving water supply and demand models, and to update the Capital Improvement Plan to reflect the incorporation of WISE components into the Castle Rock Water system. Collateral to that effort was revisiting future near-term and long-term capital plans and the cost estimates used. The capital plan is used to identify needed improvements to the distribution system to handle growth and meet future system demands, but also, it is used to identify capital rehabilitation and replacement projects for existing assets. The total capital plan for the years 2017-2055 is estimated at $171,296,257.
Annually, Castle Rock Water does a rates and fees study and revises the cost of the service model in order to recommend changes, if any, to the rates and fees schedule. Further, the capital plan is devised to try to spread out capital costs in order to minimize any unexpected jump in rates or fees in any one year. Increases in system development fees primarily affect new development, and support the expansion of facilities or development of new infrastructure to accommodate the increase in demand that comes from growth. In order to maintain system development fee (SDF) revenues to match increases in capital costs over time, the SDF’s and development impact fees are escalated for the study period 2018-2022, using 2018 as the base year and escalating at an average of 3.5 percent per year beginning in 2019. For the monthly water user charges and volumetric fees, there is no planned increase from 2017 rates for the out years 2018-2022. Increases in water user charges reflect fixed operations and maintenance costs, and the costs of capital rehabilitation and replacement, while increases in volumetric rate fees reflect variable costs and affect those who may not use water wisely, do not practice conservation within the household, or simply use more water because of a larger household.
In addition to the capital component, the plan lays out programs for the long-term cost-effective operation and maintenance of the system. These programs include:
• An aggressive valve exercising and flushing program;
• Investment in asset management software and development of the Asset Management Program, that works integrally with the inspection, operations and maintenance programs;
• In-house staff hydraulic modeling and data collection to analyze and optimize the distribution system and forecast future requirements;
• Regularly scheduled maintenance at all water treatment plants, pump stations, pressure reducing valves, and storage tanks;
• Adequate manpower and staffing, and an investment in training, safety, and career development;
• Appropriate investment in equipment and maintenance of facilities;
• Responsible replacement of aged infrastructure.
History of Past Town Council, Boards & Commissions, or Other Discussions
On September 27, 2017, the Castle Rock Water Commission voted unanimously to recommend approval to Town Council regarding the Resolution approving the 2017 Water Master Plan. On November 9, 2017, the Waster Master Plan was presented to the Planning Commission as an informational item.
Budget Impact
There will be budget implications for future system development fees, water charges and volumetric rates. This is due to the impacts the costs of the capital program and ongoing operations and maintenance (O&M) have on the enterprise fund, but these impacts will be smoothed over time. All capital improvement project costs and O&M costs are evaluated annually as part of the rates and fees analysis. The long-term capital program cost, projected through 2055, is currently $171,145,000. Significant increases in the capital plan are due to ongoing and increased maintenance of deep well facilities, which will always be a critical component of the Town’s water portfolio.
Staff Recommendation
Staff recommends that the Castle Rock Town Council approve and adopt the 2017 Water Master Plan.
Proposed Motion
“I move to approve the Resolution as introduced by title.”
Attachments
Attachment A: Resolution
Exhibit 1: Master Plan