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
Lisa Bright-Unger, Water Resources Program Analyst
Title
Resolution Approving a Water Rights Lease Agreement between the Town of Castle Rock and H&H Farms [Weld County, CO]
Body
________________________________________________________________________________
Executive Summary
Castle Rock Water is seeking Town Council approval of a resolution (Attachment A) for a water rights lease (Exhibit 1) with H&H Farms. H&H Farms is a farmer located in Weld County adjacent to the Lost Creek Basin wells the Town purchased in 2017 as part of our Alternate Source of Supply Project. As part of their 2023 lease, the farmer used 138.59 acre-feet (AF) of water from these wells for irrigation and has paid the Town $5,058.54. H&H Farms is interested in an additional one-year lease of our Lost Creek Basin water rights. The Town of Castle Rock does not plan to export these water rights in 2024 as the infrastructure needed to move the water has not yet been designed or constructed. H&H Farms wishes to lease up to 275 AF at a rate of $43.60 per AF (an increase from $36.50 per AF), which could amount to $11,990.00 in revenue. The price is reasonable for agricultural leased water of this type at this location based on available data regarding other leases in the area. The agreement terminates on November 30, 2024. This lease agreement is consistent with Castle Rock Water’s strategic plan. A key tactic in that plan is to maximize leasing opportunities for idle water rights.
Budget Impact
If Council approves the agreement, Castle Rock Water would receive up to $11,990.00 in revenue in 2024. The revenue will be deposited into Water Resources Fund Capital Leases account 211-4375-393.70-00 <WRAWL>.
Staff Recommendation
Staff recommends approval of the 2024 Water Rights Lease Agreement with H&H Farms for 275 AF of water which will generate a revenue of up to $11,990.00.
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: Location Map