To: Members of the Castle Rock Water Commission
From: Mark Marlowe, P.E., Director of Castle Rock Water
Matt Benak, P.E., Water Resources Manager
Title
Resolution Approving the 2021 Water Resources Strategic Master Plan [Entire Service Area for the Town of Castle Rock]
Town Council Agenda Date: April 5, 2022
Body
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Executive Summary
The purpose of this memorandum is to request Town Council approval of the 2021 Water Resources Strategic Master Plan (WRSMP). Planning and preparing for a secure water future is paramount for a public water provider and is a key piece of Castle Rock’s long-term water plan. Castle Rock has made it a goal to update our Water Resources Strategic Master Plan (WRSMP) every five years, and this plan will build upon the work that was done in the 2016 update. The overarching goal is to achieve a 75% renewable water supply in any given year by 2050 and a 100% renewable water supply (in average and wet years) by 2065. Over the past 5 years, the Town has averaged a renewable usage rate of 26.5%, with a peak in 2021 of nearly 33%. In 2022, Castle Rock is looking to surpass the previous renewable water usage rates now that our Advanced Treatment processes are on line at the Plum Creek Water Purification Facility (PCWPF). From a financial standpoint, we have successfully kept rates and fees below where predicted rates and fees were modelled to be in 2013 when the most expensive renewable water projects (WISE and Box Elder) were approved by Council.
The current plan identifies seven main plan components:
• Continue to Plan
• Promote Water Conservation
• Develop Storage
• Utilize Local Renewable Water Sources
• Import Additional Renewable Water Resources
• Protect Non-Renewable Groundwater as a Drought Supply
• Ensure Financial Resources to Fund the Plan
The WRSMP has functioned as a guiding document to help identify important strategic water resources projects and to provide a pathway to achieving our renewable water goals. Providing regular, semi-decadal updates to this plan allow us to reflect back on important achievements and update strategies for the next 5-year period.
Some of the major water resources initiatives included during this next planning period (2022-2026) include:
• Major limitations on turf grass for all new home construction and continuing to promote the removal of existing turf grass and replacement with ColoradoScape areas.
• Construction of Castle Rock Reservoir No. 2 and determining a path forward on pumping and a raw water pipeline out of Chatfield Reservoir back to the Castle Rock reservoir system.
• Design an expansion (to 12 million gallons per day) to PCWPF.
• Apply through the Colorado Department of Public Health and Environment (CDPHE) to begin implementation of Direct Potable Reuse (DPR).
• Obtain a final Water Court decree for the Box Elder project.
• Begin full-scale operation of ASR wells.
• Complete the construction of two additional Denver Basin wells which also incorporate ASR technologies.
In 2021, CR Water produced 9,587 acre-feet (AF) of water for our customers. For future planning, and using various population and demand forecasts, the Town’s future water needs range from 15,434 AF per year to 24,883 AF per year by 2050, with 19,100 AF/yr being the most probabilistic scenario. Thus, Castle Rock’s current water production is approximately half of what it will be in the future.
Notification and Outreach Efforts
CR Water staff attended several Town Council Member District Open Houses on September 16, 22, 30 and October 14, 2021 in order to convey information to customers about the WRSMP. Staff also presented the WRSMP at Your Town Academy on October 4, 2021 and conducted an open house event at the new Administration Building at Castle Rock Water’s campus on October 21, 2021. Approximately twelve members of the public attended the open house.
Additionally, messaging about the WRSMP was put out through Town Talk, Outlook and Facebook. An online survey was conducted to solicit direct input from residents. We received over 400 responses to the survey. Feedback indicated that many people believe that CR Water is doing a good job with water planning, but that stronger conservation measures should be implemented.
CR Water staff also reached out to the development community. Presentations were provided to the Economic Development Council (EDC) Water Subcommittee and to the Developer’s Roundtable in November and December 2021.
History of Past Town Council, Boards & Commissions, or Other Discussions
Town Council approved the final 2016 Water Resources Strategic Master Plan (WRSMP) on January 17, 2017.
Castle Rock Water Commission was provided an update on the 2021 WRSMP on May 26, 2021.
On February 26, 2022, staff discussed the WRSMP with Castle Rock Water Commission and continued the discussion to March 23, 2022.
Discussion
In 2006, the need to create a plan to secure long-term water supplies for our Town became a priority and Castle Rock Water developed a comprehensive plan to address it. At that time, the Town acquired all of our water from the deep Denver Basin aquifers which are slowly being depleted. As it takes several lifetimes to replenish this water, Castle Rock Water began looking for renewable water supplies. Renewable water is a supply that is new each year, such as snowmelt and rainfall flowing into a creek. There are a variety of renewable sources, each with various considerations. Within the 2006 Plan, and with the 2010 and 2016 updates, the overarching goal has been to achieve a water supply that consists of 75% renewable water and 25% non-renewable water by 2050. Staff has accomplished many things over the past five years that are helping us get to this goal and some of these major accomplishments are presented here:
Promoted Water Conservation
• Continued to offer rebates for turf removal and replacement with low or no water use material (ColoradoScaping).
• Eliminated Kentucky Blue Grass for new residential development.
• Continued rebates for irrigation controller and sprinkler head replacement, and indoor water saving units.
• Continued to provide irrigation system audits for customers upon request.
• Added a five-year limit to the Water Wiser designation for our customers so that they would have the opportunity to re-engage with our Water Conservation Division to refresh their knowledge on the most efficient use of water, particularly outdoor usage.
• Added remote learning options for our Water Wiser customers.
• Encouraged new developments to create Water Efficiency Plans for their planned communities.
• Offered rebates to customers to convert conventional toilets to ultra-high-efficiency toilets which use 0.8 gallons per flush or less.
• Adjusted non-residential water budgets to be based on irrigated area and plant type.
• Began the pilot testing of greywater systems.
Developed Storage
• Acquired the Castle Rock Reservoir No. 1 near Sedalia, CO which is a 240 acre-foot (AF) storage reservoir.
• Purchased additional storage space in Chatfield Reservoir and entered into a lease agreement with the State of Colorado (Colorado Water Conservation Board) to store water in the optioned storage space. Castle Rock began storing its water in Chatfield in May 2020 and at present holds approximately 1,150 AF of water in storage.
• Began design of Castle Rock Reservoir No. 2 near Sedalia, CO which is expected to be a 790 AF off-channel reservoir.
• Began the design of the Plum Creek to Rueter-Hess Pipeline project which will allow Castle Rock to store reusable return flows from the Plum Creek Basin into Rueter-Hess Reservoir for future treatment and delivery through Parker Water and Sanitation District (PWSD).
• Drilled two additional aquifer storage and recovery (ASR) wells and obtained final permits for the first two ASR wells.
Utilized Local Renewable Water Sources
• Implemented a permanent surface water diversion structure (CR-1) along East Plum Creek adjacent to PCWPF with a capacity of over 3 million gallons per day (mgd).
• Acquired the Plum Creek Diversion from United Water and Sanitation District in 2017 and subsequently improved the diversion.
• Constructed the Plum Creek Pump Station and Plum Creek Raw Water Return Pipeline which allows renewable and reusable water to be sent back to Castle Rock for treatment (at PCWPF) and use by our customers.
• Constructed Advanced Treatment Processes at the Plum Creek Water Purification Facility (PCWPF) and began to utilize indirect potable reuse to reuse as much of the water we own as possible. In 2021, Castle Rock reused just over 50% of our available reusable supplies.
• Began Zone 2 and 3 Lawn Irrigation Return Flow (LIRF) study which may eventually account for up to 750 AF of renewable or reusable water per year.
• Became members of the Cherry Creek Water Project Authority (CCPWA) which will provide an additional 250 AF of renewable water (on average) annually.
Imported Additional Renewable Water Resources
• Obtained an additional 1,000 AF of subscription in the WISE project.
• Purchased approximately 1,500 acre-feet (AF) of water rights in the Lost Creek Basin in Weld County to support the Box Elder Project and the alluvial well field on our Box Elder property.
• Constructed WISE Local Infrastructure (Canyons Pipeline and Outter Marker Road Pipeline) to be able to physically receive WISE water into Castle Rock.
• Started taking WISE water in April 2018.
• Filed a water court application for the Box Elder Project (2019) that will ensure we can use the 1,500 AF of water rights in Castle Rock.
Protected Non-Renewable Groundwater as a Drought Supply
• Acquired additional Denver Basin groundwater rights at Bell Mountain Ranch, Cherokee Ranch and as part of our participation with the CCPWA.
• Implemented a regular and robust well rehabilitation and maintenance program.
• Drilled eight new Denver Basin wells within Town to supplement our ability to draw upon Denver Basin water to firm our water resources.
Ensured Financial Resources to Fund the Plan
• Conducted annual rates and fees studies and adjusted revenues accordingly to ensure that planned projects have adequate funding to implement.
The plan update includes descriptions of ongoing capital projects, policies and programs associated with our various plan components. Anticipated initiatives for the next five years for each plan component are discussed below.
Promote Water Conservation
• Continue to offer the current suite of rebates and potentially expand to other in-home devices such as tankless water heaters and residential sprinkler master valves and flow sensors.
• Seek out opportunities to expand existing high water use plant material removal and replacement with ColoradoScape projects or artificial turf projects. This includes major limitations of turf for newly constructed homes.
• Consider an amendment to the local plumbing code to require ultra-high-efficiency toilets for all new installations.
• Implement advanced metering infrastructure (AMI).
Develop Storage
• Finalize construction of Castle Rock Reservoir No. 2 and begin utilizing this asset.
• Purchase 258 AF of additional storage space in the Chatfield Reallocation Storage Project.
• Finalize construction of the Plum Creek to Rueter-Hess Pipeline project and begin sending reusable return flows into Rueter-Hess Reservoir (RHR).
• In conjunction with the CCPWA, complete construction of the 650 AF Walker Reservoir near Franktown.
• Begin storing water downhole in the four ASR wells.
• Incorporate ASR technologies into two new Denver Basin wells.
Utilize Local Renewable Water Sources
• Design an expansion of PCWPF from 6 mgd to 12 mgd.
• Maximize the use of reusable water supplies with a goal of using 75% of available supplies through indirect potable reuse.
• Work with the State of Colorado to finalize rules for Direct Potable Reuse and apply for the required permits to begin implementation of Direct Potable Reuse at PCWPF.
• Finalize Zone 2 and 3 Lawn Irrigation Return Flow (LIRF) study.
• Fully implement delivery of Cherry Creek Water Project Authority (CCPWA) renewable water to Town with an intergovernmental agreement with the Pinery.
• Purchase additional CCPWA water rights if an agreement can be reached with other owners or various other Cherry Creek water rights as available.
• Begin design of a pump station out of Chatfield Reservoir and a pipeline to deliver the water to Castle Rock Reservoirs Nos.1 and 2.
Import Additional Renewable Water Resources
• Fully utilize our 2,000 AF WISE subscription.
• Work closely with the WISE Authority to ensure that the additional necessary WISE infrastructure (DIA Connection and Reverse Osmosis Treatment Plant) is constructed on schedule and meets the needs of the Town.
• Identify a minimum of 230 AF of additional renewable water for purchase to support the Box Elder Project and the alluvial well field on our Box Elder property.
• Develop an alternative transfer mechanism to allow sharing of water with CR Water in the Box Elder area by agricultural interests.
• Begin planning for the infrastructure to deliver the Box Elder Project water to the Town within the next decade.
• Finalize the construction of the Parker Midsection Pipeline Project to provide adequate pipeline and pumping capacity for our WISE and future Box Elder flows.
• Obtain a final Water Court decree for the Box Elder Project.
Protect Non-Renewable Groundwater as a Drought Supply
• Continue a regular and robust well rehabilitation and maintenance program.
• Identify existing Denver Basin and alluvial wells that require full replacement and when that should occur.
• Complete the permitting and construction of two additional Denver Basin wells and incorporate ASR technologies.
Ensure Financial Resources to Fund the Plan
• Continue to conduct the annual rates and fees study and adjust revenues accordingly to ensure financial viability.
• Issue debt as necessary to keep pace with the needs of the long-term renewable water plan and help smooth needed rate increases over time.
Budget Impact
The updated plan will have a major impact on budget as the plan will identify key capital improvement projects, policies and programs to reach our renewable water goals. Currently, the five-year (2022 to 2026) budget includes $89.2 million for long term renewable water projects. Work associated with this updated plan will inform the budgeting process to make needed adjustments to ensure adequate water supply for the future. The long-term plan anticipates $523 million in investments through 2060.
Staff Recommendation
Staff recommends that Town Council approve the 2021 Water Resources Strategic Master Plan.
Proposed Motion
“I move to recommend to Town Council approval of the Resolution as presented”
Attachments
Attachment A: Resolution
Exhibit 1: Water Resources Strategic Master Plan