To: Members of the Castle Rock Water Commission
From: Mark Marlowe, P.E., Director of Castle Rock Water
Matt Benak, P.E., Water Resources Manager
Jakob Hartmann, Water Resources Program Analyst
Title
Resolution Approving a Purchase Agreement between the Town of Castle Rock and Roxborough Water and Sanitation District for Water Rights and Other Infrastructure (Location: Northern and Central Douglas County)
Town Council Agenda Date: July 19, 2022
Body
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Executive Summary
The purpose of this memorandum is to seek Town Council approval of the resolution approving a purchase and sale agreement between Roxborough Water and Sanitation District (Roxborough) and the Town of Castle Rock (Town) (see Attachment A). The Town desires to purchase certain infrastructure capacity and water rights owned by Roxborough. To this end the Town will acquire full ownership, capacity, and rights to the Bell Mountain wells (not including that portion owned by the Town of Lochbuie), Roxborough’s capacity in the Ravenna Pipeline, Castle Rock Reservoir No. 1, and the Plum Creek Diversion and Roxborough’s interest in the Meadow Ditch water rights (Attachment B). In return, Roxborough will receive raw water delivered through the Ravenna Pipeline exclusively for irrigation of the Ravenna Golf Course in the maximum amount of 220 acre feet per year (AF/yr). This water will be charged at a rate determined by the Town. The purchase price is $2,273,000.
Discussion
In November of 2017, the Town of Castle Rock entered a Water Service Agreement with the Ravenna Metropolitan District. Previously, Ravenna was under a service agreement with Ravenna Project Water Activity Enterprise. Once Castle Rock Water acquired all of United Water and Sanitation District’s Douglas County assets, the Town became the provider of raw water to the Ravenna Golf Course. As part of this agreement, Castle Rock indicated how expenditures for the operation and maintenance of the Ravenna Water Facilities would be recovered. In 2018, Roxborough entered into an agreement to provide raw water service to the Ravenna Golf Course.
Roxborough is willing to sell the Property on the terms and conditions of the purchase and sale agreement. The “Property” is defined as the Roxborough tracts, easements, water rights, infrastructure, and miscellaneous property. The Bell Mountain wells water rights (Attachment C) located immediately south of Castle Rock are included as part of the Property. Roxborough currently owns 4.5% (1.8 cubic feet per second [cfs] of 40 cfs) capacity within the Plum Creek Diversion, 100 acre feet (AF) of 240 AF within Castle Rock Reservoir No. 1, and 23.53% of the Ravenna Pipeline capacity. Additionally, the Town would acquire Roxborough’s 75% interest in the water rights associated with the Meadows Ditch on Indian Creek. This water has an 1866 appropriation date and there are no downstream water rights on Indian Creek or Plum Creek with a higher seniority. This water right may yield up to 50 AF annually.
As part of the purchase and sale agreement, Roxborough desires a ‘Will Serve’ Agreement for up to 220 AF of raw water per year. This water would only apply to irrigation of the Ravenna golf course and no other purpose. Castle Rock has conducted a cost of service rate model for delivery of this water and the study shows $___ per 1,000 gallons. Like all Castle Rock Water rates, this rate will be updated on an annual basis in accordance with actual cost of service.
Budget Impact
The Town currently has $6,620,000 in the Water Rights Acquisition project budget (Account Number 211-4375-443.75-47, Project Code WR OWR) for 2022. Castle Rock Water is pursuing another purchase of water rights using this same account, so it is likely that a budget amendment will be necessary should both purchases move forward. Thirty-five thousand dollars ($35,000) of the overall funding would come from the water fund (Account Number 210-4275-442.78-97 Ground Water Rights Purchase, Project Code WR OWR) due to the 424 AF of Denver Basin groundwater that will come with the purchase. The total purchase price for this agreement with Roxborough is $2,273,000.
Proposed Motion
“I move to recommend to Town Council approval of the Resolution as presented”
Attachments
Attachment A: Resolution (Not Attached)
Exhibit 1: Agreement
Attachment B: Location Map
Attachment C: Bell Mountain Water Rights