To: Members of the Castle Rock Water Commission
From: Mark Marlowe, P.E., Director of Castle Rock Water
Title
Resolution Approving the First Amendment to the Intergovernmental Agreement Between the Town of Castle Rock and Crowfoot Valley Ranch Metropolitan District Nos. 1 and 2 Regarding the Monitoring and Enforcement of Town Conservation Regulations [Located in the Macanta subdivision off of Crowfoot Valley Road, northeast of Castle Rock in unincorporated Douglas County]
Town Council Agenda Date: December 7, 2021
Body
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Executive Summary
The purpose of this memorandum is to request Council approval of a resolution (see Attachment A) approving the First Amendment to the Intergovernmental Agreement (IGA) Between the Town of Castle Rock and Crowfoot Valley Ranch Metropolitan District Nos. 1 and 2 (“Districts”) regarding the monitoring and enforcement of Town Conservation Regulations. In June 2005, the Town entered into an extraterritorial water service IGA with the Districts whereby the Town would be the exclusive water service provider to Canyons South. On March 2, 2021, the Districts and Town entered into an agreement whereby the Town shall provide the Districts with contractual monitoring and enforcement of the conservation regulations at a nominal cost in order to ensure uniform application of the regulations between the development and properties within the Town. In order to effectively implement the requirements of the IGA, it is necessary for the Districts to assign their responsibilities to the homeowners’ association, Macanta Community Association, Inc.
History of Past Town Council, Boards & Commissions, or Other Discussions
On June 8, 2005, Town Council approved a resolution for the water service agreement with Canyons South obligating the Town to provide extraterritorial water service to Canyons South for up to 968 single family equivalents (SFEs). This agreement requires that the developer construct all water infrastructure internal to the development and transfer ownership of the water infrastructure to the Town, which the Town will then own, operate and maintain. Water service charges and fees will be charged at 110% of the levels established in the Town through the Water Regulations. In conjunction with this water service agreement, Town Council also approved, under separate resolution, a water purchase agreement whereby Canyons South dedicated 2,746 acre-feet (AF) Denver Basin groundwater to the Town, which included a surplus amount of 1,396 AF purchased at a price of $415,090. In essence, the Town acquired all of the groundwater associated with Canyons South, minus 465 AF reserved by the developer for a then proposed golf course.
On January 22, 2020, the Castle Rock Water Commission voted to recommend to Council approval of an extraterritorial wastewater service agreement since the Town was already committed to water service from the 2005 IGA.
On March 3, 2020, Council approved an extraterritorial wastewater service agreement with Canyons South since the Town was already committed to water service from the 2005 IGA.
On March 2, 2021, Council approved an intergovernmental agreement for water conservation monitoring and enforcement.
On December 1, 2021, the Castle Rock Water Commission voted to recommend to Council approval of the First Amendment to the Intergovernmental Agreement Between the Town of Castle Rock and Crowfoot Valley Ranch Metropolitan District Nos. 1 and 2 Regarding the Monitoring and Enforcement of Town Conservation Regulations.
Discussion
The IGA fulfills an obligation under the water service agreement and will help ensure that the Canyons South development (“Property”) conforms to the same water conservation requirements required by all Castle Rock Water customers. The First Amendment to the IGA allows for assignment of the IGA from the Districts to the Macanta Community Association, Inc. This assignment will allow this agency, charged with the responsibility of working directly with the Property Owners, to implement, monitor and enforce Castle Rock Water’s conservation requirements. This will be a more effective vehicle through which to implement and enforce the requirements of the Conservation Services IGA than the current arrangement which requires the Districts to to do this work.
Staff recommends approval of this amendment to the IGA to ensure water conservation requirements are met in the Canyons South (aka Macanta) development.
Budget Impact
The costs for monitoring and enforcement of the conservation regulations will be offset by the fees charged for such services. Assuming an absorption rate of 100 homes per year, the annual expenses and revenues will be approximately $8,000 to $10,000 for both revenue and expenditures. Non-residential irrigation permit fees could add another $5,000 to $10,000 in both revenue and expenditure. These costs will be accounted for in the annual budgeting process.
Staff Recommendation
Staff recommends approval of this First Amendment to the IGA between the Town and Crowfoot Valley Ranch Metropolitan District Nos. 1 and 2.
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: Agreement