To: Honorable Mayor and Members of Town Council
From: Mark Marlowe, P.E., Director of Castle Rock Water
Title
Resolution Adopting the 2016 Wastewater Master Plan
Body
________________________________________________________________________________
Executive Summary
The purpose of this memorandum is to request Town Council approval and adoption of the 2016 Wastewater Master Plan (WWMP). The 2016 Wastewater Master Plan (WWMP) presents critical findings and recommendations resulting from a reassessment of wastewater program needs for the Town of Castle Rock. This 2016 plan builds on the previous master planning efforts, but is also a stand-alone document.
Currently the Town of Castle Rock wastewater collection system, which serves a population of over 62,000, has more than 8,200 sanitary sewer manholes, is over 270 miles in total length, and transports on average in excess of 3.73 million gallons of wastewater each day to the Plum Creek Water Reclamation Authority (PCWRA). At an estimated build-out population, the collection system could serve as many as 155,000 residents. At peak times, Wastewater flow to be conveyed to the PCWRA for treatment via interceptors could triple at future build-out conditions.
The following principles serve as the base for the Town’s wastewater 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 Wastewater Enterprise Fund as a Business, Balancing Revenue and Expenses
Principle 5: Provide for Effective Long-term Operation and Maintenance of Collection System Facilities
Principle 6: Ensure Wastewater Planning is Consistent with, and Considered Part of, a Fully
Integrated Total Water Management Approach
Part of the effort to revise the Wastewater Master Plan for 2016 was to revisit the capital plan and the cost estimates used. The plan is used to identify needed improvements to the system to handle growth, but also, it is used to identify capital rehabilitation and replacement for existing assets. Annually, Castle Rock Water does a rates and fees study and revises the cost of 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. For example, there was an almost six percent increase in system development fees between 2016 and 2017, mostly due to the acceleration of expansion of the Plum Creek Water Reclamation Authority, but thereafter, the planned increases are around 2.7 percent. Increases in system development fees primarily affect new development, and support the expansion of facilities to accommodate the increase in demand that comes from growth. For the monthly wastewater user charges and volumetric fees, there is no planned increase from 2016 rates for the out years 2017-2021. Wastewater user charges reflect fixed operations and maintenance costs, and the costs of capital rehabilitation and replacement. 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 collection system, cleaning and inspection program using closed circuit televising equipment and specialized software;
• Investment in asset management software and development of the Asset Management Program, which works integrally with the inspection and maintenance programs;
• In-house staff capable of using hydraulic modeling and data to analyze the collection system and forecast future requirements;
• Regularly scheduled maintenance of all force mains and lift stations;
• Adequate manpower and staffing;
• Continued investment in training and safety; and
• Appropriate investment in equipment and maintenance of facilities.
History of Past Town Council, Boards & Commissions, or Other Discussions
On January 25, 2017, the Castle Rock Water Commission voted unanimously (7-0) to recommend approval of the 2016 Wastewater Master Plan to Town Council.
On March 6, 2017, this was presented to the Public Works Commission as an informational / update item.
On March 9, 2017, this was presented to the Planning Commission as an informational / update item.
Budget Impact
There will be budget implications for future system development fees, wastewater charges and volumetric rates due to the impacts that 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 the year 2050, is currently $80,058,000, and is essentially unchanged since the 2010 master plan when it was $79,754,000, a difference of 0.38 percent.
Staff Recommendation
Staff recommends that Town Council approve a Resolution adopting the 2016 Wastewater Master Plan.
Proposed Motion
“I move to approve the Resolution as introduced by title”.
Attachments
Attachment A: Resolution
Exhibit 1: Master Plan