To: Honorable Mayor and Members of Town Council
From: Mark Marlowe, Director of Castle Rock Water
Matt Benak, Water Resources Program Manager
Lauren Tyner, Water Resources Program Analyst
Title
Resolution Ratifying the Town of Castle Rock/Gandomcar Spot Water Lease Agreement
Body
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Executive Summary
Castle Rock Water is seeking Town Council ratification of a resolution (Attachment A) for a spot water lease with Jahanbin Gandomcar (Gandomcar). Gandomcar utilizes an Arapahoe well on his Douglas County property to irrigate polo fields for the Denver Polo Club. Gandomcar asked to lease up to 10.35 acre-feet of the Town’s surplus reusable water supplies along Plum Creek, which are treated at the Plum Creek Water Reclamation Authority (PCWRA) and released back to the stream. The Town releases roughly 270 acre-feet (AF) per month of fully-consumable water from the PCWRA plant. Until the Plum Creek Diversion pump station and pipeline are constructed or until the Chatfield Reallocation Project is cleared to allow storage, the Town is limited in its ability to capture and utilize this water supply. Thus, leasing this water to other parties downstream is a good option and provides an income stream for the Water Resources Enterprise similar to a previous spot water lease approved by Council on June 5, 2018. We have agreed to a $300/AF price for the water and he will pay a $2,500 lease development fee. The agreement is non-exclusive, so the Town would be able to lease additional surplus supplies to other interested parties. The agreement will terminate at the end of 2018.
Discussion
Mr. Gandomcar utilizes an Arapahoe well on his Douglas County property to irrigate polo fields for the Denver Polo Club. The leased water is for supplemental augmentation to this well when additional augmentation water is needed. The augmentation point for this water is the Charles T. Newmarch Ditch, which is 6.91 miles below PWCRA following the stream channel.
The key terms of the 2018 spot water lease agreement are summarized below:
• Gandomcar will be leasing some excess reusable supplies that the Town cannot currently capture for reuse.
• Agreement will terminate December 31, 2018.
• Gandomcar will lease up to 10.35 AF of water at a rate of $300/AF.
• Quantities will be limited to 0.07 AF/day from July 9 to December 31, 2018.
• Point of delivery measurement is at PCWRA. Gandomcar will be responsible for any stream transit losses incurred to the delivery quantity.
The benefit of the lease agreement is that it generates revenue for Castle Rock Water that wouldn’t otherwise be obtained since the water would continue to flow down Plum Creek to the South Platte River.
Budget Impact
If Council ratifies the agreement, Castle Rock Water would receive up to $5,605 in revenue in 2018. The revenue will be deposited into the Water Resources Fund Capital Leases account 211-4375-393.70-00.
Staff Recommendation
Staff recommends ratification of the resolution as presented.
Proposed Motion
“I move to ratify the resolution as introduced by title”.
Attachments
Attachment A: Resolution
Exhibit 1: Agreement