To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Mark Marlowe, P.E., Director of Castle Rock Water
Tim Friday, P.E., Assistant Director of Castle Rock Water
Title
Resolution Approving the First Amendment to the Ridge Estates Annexation and Development Agreement [South of Crystal Valley Ranch, east of Bell Mountain Ranch and north of Sellers Creek Ranch]
Body
________________________________________________________________________________
Executive Summary
The Ridge at Crystal Valley (Figure 1) is a development comprised of property within the Crystal Valley Ranch Planned Development, 4th Amendment (Crystal Valley Ranch PD) and the Ridge Estates Planned Development (PD). The property is generally located in the southwest section of Crystal Valley Ranch, east of Bell Mountain Ranch and north of Sellers Creek Ranch. Maple Grove Land, LP, entered into an Annexation and Development Agreement (DA) for this property
that, among a number of other requirements, included a provision to construct Enhanced Water Improvements that would benefit the adjacent community of Bell Mountain Ranch if the Town were to commit to provide water service to Bell Mountain Ranch. Should the Town enter into such commitment, the property owner has agreed to enlarge or modify the water system improvements in order for the Town to provide said water service to Bell Mountain Ranch. Based on approval of the Water Service Agreement to serve Bell Mountain Ranch through an extraterritorial service agreement, staff recommends approval of the Resolution approving the First Amendment to the Ridge Estates Annexation and Development Agreement (see Attachment A). The cost for the Enhanced Water Improvements will be recovered by the Town from Bell Mountain Ranch through a water service agreement under the terms of that agreement.
History of Past Town Council, Boards & Commissions, or Other Discussions
On May 23, 2019, the original Annexation and Development Agreement was presented to Planning Commission. Planning Commission recommended approval by Town Council.
On July 16, 2019, Town Council approved the original Annexation and Development Agreement.
On October 27, 2021, the Annexation and Development Agreement Amendment was presented to Castle Rock Water (CRW) Commission, and the CRW Commission recommended Town Council approval as presented by staff.
Discussion
Town Council approved annexation of this property in July 2019 and since that time the developer has worked with Castle Rock Water to agree to the terms outlined in the First Amendment to the Annexation and Development Agreement. Specifically, this amendment addresses design and construction of shared water infrastructure (“Enhanced Water Improvements”) that will enable a water system connection to be extended through The Ridge into Bell Mountain Ranch. The Enhanced Water Improvements include a pump station and pipeline with adequate capacity to serve the needs of both The Ridge and Bell Mountain Ranch. The terms of the amendment are summarized as follows:
1. If the Town approves an intergovernmental agreement with Bell Mountain Ranch, the Enhanced Water Improvements will be constructed by the Town after design by Owner;
2. The design and construction costs of the Enhanced Water Improvements and any costs incurred in the acquisition of any easements associated therewith shall be allocated between Owner and Town as follows;
|
|
Town for Bell Mountain Ranch |
Owner |
|
Pump Station |
70% |
30% |
|
Pipeline |
70% |
30% |
|
Water Tank |
0% |
100% |
3. Owner shall retain a professional engineer licensed in the State of Colorado to design the Enhanced Water Improvements (the “Design”). Upon completion, the Design shall be submitted to the Town and any other governmental agencies with jurisdiction over the Enhanced Water Improvements for approval;
4. After approval of design, construction of the Enhanced Water Improvements shall be competitively bid by the Town, using the Town’s normal bidding processes. Town shall select the “Lowest Qualified Bid” in accordance with the Town’s normal contracting procedures.
5. Prior to the commencement of construction of the Enhanced Water Improvements, pursuant to an escrow agreement containing customary terms and conditions, Town (for Bell Mountain Ranch) and Owner shall jointly fund into escrow their respective shares of the construction and easement acquisition costs in accordance with the cost allocation percentages identified above;
6. If Town proceeds with the Enhanced Water Improvements, then Town will release the existing easement on the Ridge that was dedicated in the original Development Agreement back to the Owner; and
7. If the Intergovernmental Agreement between the Town and Bell Mountain Ranch is terminated for any reason, then Owner shall have the right to build improvements just to serve the Ridge. As long as those improvements do not negate the ability of the Town to serve Bell Mountain Ranch in the future, the Town will release the existing easement on the Ridge that was dedicated in the original Development Agreement back to the Owner.
Budget Impact
The proposed amendment to the Development Agreement includes $1,392,000 in costs for water pumping and piping infrastructure that will be offset by revenues collected through the water service agreement between the Town and Bell Mountain Ranch. The estimated costs are shown on Exhibit 6 in Attachment A.
Recommendation
Staff recommends approval of the resolution as presented.
Proposed Motion
“I move to approve the Resolution as introduced by title.”
Alternative Motions
“I move to approve the resolution as introduced by title, with the following conditions: (list conditions).
“I move to continue this item to the Town Council meeting on _____ date to allow additional time to (list information needed).”
Attachments
Attachment A: Resolution
Exhibit 1: Amended Agreement
Exhibit 4 to Exhibit 1: Temporary Easement
Exhibit 6 to Exhibit 1: Cost Allocations