To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Mark Marlowe, P.E., Director of Castle Rock Water
Matt Benak, P.E., Water Resources Manager
Lauren Moore, Water Resources Program Analysis
Title
Resolution Approving the 2021 Spot Water Lease Agreement Between the Town of Castle Rock and United Water & Sanitation District
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 United Water & Sanitation District (United). In anticipation of drought conditions this summer, United wishes to lease some of the Town’s surplus water stored in Chatfield Reservoir to augment their downstream reservoir diversions from the main stem of the South Platte River. Completion of the Chatfield Storage Reallocation Project in 2020 prompted the Colorado Water Conservation Board to allow shareholders access to full storage amounts for the first year of storage. While the Town currently owns 590 AF of storage in Chatfield, storage of up to 2,000 AF was permitted until May 2021. After May, the Town will rent storage in excess of 590 AF. The Town currently has upwards of 1,250 AF of water stored in the reservoir with additional reusable supplies coming in each day.
If Council approves this lease, up to 400 acre-foot (AF) of water would be released from the Town’s Chatfield Reservoir storage account into the main stem of the South Platte River. This release would occur between April 7, 2021 to December 31, 2021. The Town will assess a $340 per AF price for the water, with a minimum lease of 20 AF. Initial payment of the 20 AF lease will be required 10 days from approval of this lease, with the remaining quantity to be paid upon subsequent releases. The potential revenue for this lease is up to $136,000. The agreement will terminate at the end of 2021.
Budget Impact
If Council approves the agreement, Castle Rock Water would receive $6,800-$136,000 of additional revenue in 2021. The revenue will be deposited into the Water Resources Fund Capital Leases account 211-4375-393.70-00.
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