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, P.E., Water Resources Manager
Heather Justus, P.G., Water Resources Project Manager
Jakob Hartmann, Water Resources Program Analyst
Title
Appointment Approving Staff Appointment of Heather Justus to the Cherry Creek Project Water Authority (CCPWA) as Board Alternate
Body
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Executive Summary
On February 12, 2021 the Town of Castle Rock closed on the purchase of Arapahoe County Water & Wastewater Authority’s (ACWWA’s) 41.25% stake in the Cherry Creek Project Water Authority (CCPWA). Section 4.1.a. of the First Amended and Restated Water Project Agreement and Establishing Contract (Agreement) states that each member shall appoint one representative to serve on the Authority Board and may name one or more alternate Board members.
Castle Rock Water named Matt Benak, Water Resources Manager as the primary Board member representing Castle Rock’s interest in the Authority (he is currently serving as Treasurer). Originally Mark Marlowe, Director of Castle Rock Water was named as an alternate Board member. Castle Rock Water (CRW) is recommending Heather Justus, Water Resources Project Manager, be named board alternate in his place.
History of Past Town Council, Boards & Commissions, or Other Discussions
On June 17, 2019, CRW staff presented the opportunity to purchase ACWWA’s interest in the CCPWA to the Castle Rock Water Commission (CRWC), who recommended that the Town move forward with the purchase.
On June, 18, 2019, CRW staff presented the opportunity to purchase ACWWA’s interest in the CCPWA to the Water Resources Committee. The Committee recommended moving forward with an offer.
On October 2, 2019, the Director of CRW attended the CCPWA’s Board Meeting to discuss Castle Rock’s proposed purchase of ACWWA’s interest in the project and to confirm that the other members were open to reevaluating the proposed capital infrastructure for the project and the manner in which that infrastructure is funded by the CCPWA members.
On October 23, 2019, CRW staff presented the revised agreement to CRWC, and CRWC again recommended that Council approve the purchase and the agreement.
On December 11, 2019, CRWC was updated on the final agreement approach and CRWC offered their continued support by general consensus.
On January 21, 2020, Town Council approved the Purchase and Sale Agreement with ACWWA.
On March 5, 2020 the Town and ACWWA entered into the Contract for the Purchase and Sale Agreement.
On May 5, 2020, the Town and ACWWA entered into the First Amendment to the Contract for the Purchase and Sale Agreement which put into effect a 90-day stay due to the potential impacts of the COVID-19 pandemic.
On November 3, 2020, Town Council approved the Second Amendment to the Contract for the Purchase and Sale Agreement to provide an extension of time for diligence activities and closing.
On February 12, 2021 the Town of Castle Rock closed on the purchase of Arapahoe County Water & Wastewater Authority’s (ACWWA’s) 41.25% stake in the Cherry Creek Project Water Authority (CCPWA).
Discussion
The CCPWA is a group of water providers that has formed an Authority to construct and operate a water project, consisting of renewable and Denver Basin water, in the Cherry Creek Basin to provide relatively firm water yield of from 500 to 2,000 acre feet per year. CCPWA is comprised of four participants with shares in the project as follows:
• Castle Rock Water: 41.25%
• Inverness Water & Sanitation District: 31.118%
• Denver Southeast Suburban (AKA “The Pinery”): 20.489%
• Cottonwood Water & Sanitation District: 7.143%
Staff recommended that Matt Benak be named to the Authority Board to represent Castle Rock’s interest and Mark Marlowe as an alternate Board Member. Given the Director’s current priorities, staff recommends that Heather Justus take Mark Marlowe’s place as an alternate board member given her familiarity with the Authority’s activities and goals.
Budget Impact
There are no direct financial impacts by naming alternate staff to the CCPWA Board.
Staff Recommendation
Staff recommends that Town Council approve the appointment of staff to the CCPWA Board.
Proposed Motion
“I move to approve the Appointment of Heather Justus as the Board Alternate to the cherry Creek Project Water Authority (CCPWA).