To: Honorable Mayor and Members of Town Council
From: Mark Marlowe, PE, Director of Castle Rock Water
Matt Benak, PE, Water Resources Program Manager
Lauren Moore, Water Resources Program Analyst
Title
Resolution Approving the Town of Castle Rock/Roxborough Water and Sanitation District Water Lease Agreement
Body
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Executive Summary
Castle Rock Water is seeking Town Council approval of a resolution (Attachment A) for a Water Lease Agreement with Roxborough Water and Sanitation District (Roxborough). This is a mutually beneficial agreement to more efficiently use water supplies owned by Roxborough and Castle Rock. It will provide Castle Rock with access to additional water supply during peak irrigation season in exchange for reuse water we cannot yet use. Roxborough owns a total of 423.7 acre-feet (AF) of Denver Basin groundwater rights in the Dawson, Denver, and Arapahoe Aquifers, collectively known as Bell Mountain Ground Water on the Bell Mountain property just south of the Town limits. As part of a mutual agreement between Castle Rock Water and Roxborough, Castle Rock Water will pump the Bell Mountain Ground Water and capture this water at the Town’s CR-1 diversion in exchange for a like amount of the Town’s fully reusable surplus water downstream in Sedalia at the Town’s Plum Creek Diversion, for a discounted rate. We have agreed to a provide a reduced rate to Roxborough of $37.50/AF for the Dawson water, $85/AF for the Denver water, and $157/AF for the Arapahoe water, for like quantities of their Bell Mountain Ground Water pumped by Castle Rock Water. If Castle Rock does not pump Bell Mountain groundwater, Roxborough will continue to pay $300/AF for our treated surplus effluent. 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 2019.
History of Past Town Council, Boards & Commissions, or Other Discussions
On March 27, 2019, the Castle Rock Water Commission unanimously voted to recommend Council approval of this agreement.
Discussion
As part of the United Purchase in 2017, Castle Rock Water aquired 133.8 AF in Bell Mountain in the Denver aquifer and agreed to operate and maintain the three Bell Mountain wells for Roxborough and the Town of Lochbuie. Roxborough owns 136.5 AF/year in the Dawson Aquifer, 129.8 AF/year in the Denver Aquifer, and 157.7 AF/year in the Arapahoe Aquifer. Under our Water Supply Agreement, Roxborough can request water to be pumped within the above limits at each of the Bell Mountain wells for release into East Plum Creek roughly 16 miles upstream from the Plum Creek Diversion in Sedalia. This water is used by Roxborough to provide irrigation water to Ravenna Golf Course. By entering into this 2019 Water Lease Agreement, Roxborough is able to save 16 miles of stream loses that would have to be incurred by taking Bell Mountain Ground Water in exchange for Castle Rock Water’s fully reusable effluent. In return, Castle Rock Water is able to utilize Bell Mountain Ground Water that can be captured at CR-1 for treatment at Plum Creek Water Purification Facility (PCWPF) and then delivered into the Town’s distribution system.
The key terms of the 2019 Water Lease Agreement are summarized below:
• The use of Roxborough’s Bell Mountain Ground Water by Castle Rock Water is at Castle Rock Water’s sole discretion, with 48-hour notice.
• Roxborough will be leasing some excess reusable supplies that Castle Rock Water cannot currently capture for reuse at our Plum Creek Diversion in exchange for Bell Mountain Ground Water that Castle Rock Water will capture at CR-1.
• Roxborough can lease like quantities of Bell Mountain Groundwater up to
o 136.5 AF of water from the Dawson Aquifer at a rate of $37.50/AF;
o 129.8 AF of water from the Denver Aquifer at a rate of $85/AF; and
o 157.7 AF of water from the Arapahoe Aquifer at a rate of $157/AF.
• The Town will pay all electrical costs if the Town is the only user of Bell Mountain Groundwater. Otherwise, the Town will pay the pro-rata share of electrical costs for pumping the Bell Mountain Ground Water.
• Roxborough will bear the costs of diversion, transmission, and utilization of the water they lease taken at the Plum Creek Diversion.
• Agreement will terminate December 31, 2019.
The benefit of the lease agreement is that it provides the Town an additional water source during peak summer demands. Additionally, this lease agreement utilizes surplus effluent that currently flows downstream and cannot be captured until the Plum Creek Diversion pump station and pipeline are constructed or until the Chatfield Reallocation Project is cleared to allow storage.
Budget Impact
If Council approves the agreement, Castle Rock Water could receive up to $40,911 in additional revenue in 2019. 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