To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Mark Marlowe, P.E., Director of Castle Rock Water
Matt Benak, Water Resources Manager
Heather Justus, Water Resources Project Manager
Title
Ordinance Amending Various Sections in Chapter 4.04 of the Castle Rock Municipal Code Regarding the Water Dedication Code (Second Reading - Approved on First Reading on April 19, 2022, by a vote 7-0) [Entire Town, infill properties and surrounding areas in Unincorporated Douglas County that are considering annexation]
Body
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Executive Summary
This memorandum has been prepared to request Council approval of an Ordinance on first reading (see Attachment A) revising sections 4.04.020, 4.04.030, 4.04.045, 4.04.050, 4.04.060, 4.04.070, and 4.04.110 of Town code. The primary change to Town code is in section 4.04.045. This section which was first added in April of 2018 summarizes the manner by which properties located outside of Town must provide renewable water resources in order to qualify for potential annexation. The change removed one of the exceptions to the renewable water dedication requirement. Previously if properties had applied for annexation prior to May 1, 2018, the property was exempt from the renewable water dedication requirement assuming annexation was completed by December 31, 2020. This exception was removed as it is no longer applicable. The other key change to the code, redefined some properties as infill which for all practical purposes are located within the Town, but previously had not been shown as infill properties. Infill properties are exempt from the requirement to dedicate renewable water resources at annexation. Attachment B shows the properties that were included as “infill” on the revised property map that were not previously included as “infill”. The changes to the remaining sections of Town Code provide clarifications and editorial changes, but they do not change the meaning or intent of the code. These code sections cover all aspects of dedication of groundwater and renewable water to the Town for new annexations.
Notification and Outreach Efforts
Properties that will be included as “infill” were notified prior to first reading.
History of Past Town Council, Boards & Commissions, or Other Discussions
The draft ordinance was presented to Castle Rock Water Commission (CRWC) on March 23, 2020. The CRWC unanimously (6-0) recommended Town Council approve the ordinance as presented.
Discussion
This ordinance supports a policy and related ordinance requirement (Chapter 4.04) that future residential annexations should not increase the overall demand for Town renewable water resources unless and until renewable water projects are in place to satisfy the increased demand. As addressed in the recitals to the ordinance, acquisition of sufficient renewable water resources to meet the strategic plan goal of 75% renewable at full buildout of the Town is daunting. Although significant progress has been made in securing such water resources, additional acquisitions will need to be made in future years in an increasingly competitive market for such resources.
Future annexations outside of Town boundaries have not been included to this point in the long term renewable water plan which is a primary reason that these annexations, if to be accepted into the Town, must dedicate renewable water resources in accordance with the code passed in April 2018. The properties shown as “infill” however have always been included in Castle Rock Water’s service area and included in the long term renewable water plan. As a result, it makes sense to include these properties as “infill” with respect to the ordinance exemptions in 4.04.045.
Finally, it is important to note that compliance with this ordinance whether as an “infill” property or a property in the exclusion area does not create an entitlement to annexation and zoning of the New Residential Property. Annexation is a discretionary, legislative act of the Town Council and even though sufficient transferable development rights might be secured in compliance with this ordinance, or sufficient renewable water is provided, or a reduction in current water demand created, or an exemption exists for the infill property, the Council may decline to annex and zone the property based on other factors.
Budget Impact
The proposed changes to code add some additional properties to “infill” area meaning those properties, if they apply for annexation, will not be required to dedicate renewable water. While the value of this renewable water would be significant, renewable water for these properties has already been accounted for in the long term renewable water plan and therefore is covered in the current system development fees which these “infill” properties would have to pay.
Staff Recommendation
Staff recommends approval of the Ordinance as presented on first reading.
Proposed Motion
“I move to approve the Ordinance as introduced by title.”
Alternative Motions
“I move to approve the ordinance 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: Ordinance
Attachment B: Infill Properties Map