To: Honorable Mayor and Members of Town Council
From: Mark Marlowe, P.E., Director of Castle Rock Water
Matt Benak, P.E., Water Resources Manager
Lauren Moore, Water Resources Program Analyst
Title
Resolution Approving the Town of Castle Rock / Nelson Family Spot 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 spot water lease with Henri Ann Nelson (Nelson Family). The Nelson Family utilizes an alluvial well along Little Dry Creek to irrigate 12 acres of land at University Boulevard and Belleview Avenue in Greenwood Village, CO. The Nelson Family asked to lease up to 17.24 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 187 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 fully 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. We have agreed to a $350/AF price for the water, and they will pay a non-refundable $1,750 for a minimum annual delivery of 5 acre-feet. 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
May 23, 2018, Castle Rock Water Commission recommends approval of the 2018 Water Lase Agreement.
On June 5, 2018, Town Council unanimously approved the 2018 Water Lease Agreement.
On May 21, 2019, the Nelson Family’s legal representative requested a renewal of the 2018 Spot Water Lease Agreement.
Discussion
The Nelson Family irrigates 12 acres of property at the southeast corner of University Boulevard and Belleview Avenue using an alluvial well along Little Dry Creek.
The key terms of the 2019 spot water lease agreement are summarized below:
• The Nelson Family will be leasing some excess reusable supplies that the Town cannot currently capture for reuse.
• Agreement will terminate December 31, 2019.
• The Nelson’s will lease up to 17.24 AF of water at a rate of $350/AF.
• Quantities will be limited to 0.07 AF/day between June 18 to December 31, 2019.
• Point of delivery measurement is at the PCWRA outfall.
• The Nelson Family will be responsible for any stream transit losses incurred to the delivery point.
The benefit of the lease agreement is that it generates revenue for Castle Rock Water that would not otherwise be obtained since the water would continue to flow down Plum Creek to the South Platte River.
Budget Impact
If Council approves the agreement, Castle Rock Water would receive up to $6,034 in additional revenue in 2019. The revenue will be deposited into 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