To: Honorable Mayor and Members of Town Council
From: Mark Marlowe, P.E., Director of Castle Rock Water
Tim Friday, P.E., Assistant Director of Castle Rock Water
Title
Resolution Approving the Extraterritorial Water and Wastewater Service Contract between the Town of Castle Rock and Milestone Charter Holdings, LLC [271 N. Ridge Road]
Body
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Executive Summary
The purpose of this memorandum is to request Council approval of a resolution (see Attachment A) approving an Extraterritorial Water and Wastewater Service Contract with Milestone Charter Holdings, LLC. On January 17, 2017, the Douglas County School District Board approved a contract for a charter school, called Milestone Academy, to begin construction in the fall of 2017 and open in the fall of 2018. The site is located at 271 N. Ridge Rd., Castle Rock (see Attachment B.) This project will be phased in as enrollment and funds become available (see Attachment C.) Eventually the developer and charter school will request annexation into the town of Castle Rock. In the interim, they have requested an Exterritorial Agreement with the necessary assurance that the Town of Castle Rock will provide the school access to both water and sanitary sewer regardless of the annexation.
Castle Rock Municipal Code (13.12) authorizes the extension of water and/or wastewater service to properties outside the municipal boundaries through an extraterritorial service contract approved by Town Council.
In accordance with 13.12.040 of the Municipal Code, system development fees will be charged at 125 percent of the standard charges, and water and wastewater monthly service charges shall be imposed and billed at 125 percent of the rates until such time the owner annexes the property into the Town. At that time, the Town will collect water and wastewater service charges at the rates imposed on all customers of the Town.
As set forth in 13.30.060 of the Municipal Code, a monthly stormwater utility fee will be imposed and billed at 100 percent of the fees for typical customers. The owner agrees to file a petition for annexation no later than three years from the date this agreement is executed at which time a rebate of those stormwater amounts and the 25 percent surcharge on system development fees paid will be rebated back to the owner. After annexation takes place, the owner will continue payment of the stormwater utility fees at the rate imposed on all customers of the Town.
The contract also includes a provision that in the event the owner does not connect to the Town’s water and wastewater system by December 31, 2018, the Service Contract shall continue but no rebates will be available to the customer.
History of Past Town Council, Boards & Commissions, or Other Discussions
On March 22, 2017, Castle Rock Water commission unanimously recommended Council support of the Extraterritorial Service Contract.
Staff Recommendation
Staff recommends approval of the Extraterritorial Water and Wastewater Service Contract with Milestone Charter Holdings, LLC, for the property located at 271 N. Ridge Rd.
Proposed Motion
“I move to approve the Resolution as introduced by title.”
Attachments
Attachment A: Resolution
Exhibit 1: Service Contract
Attachment B: Location map
Attachment C: Project information sheet