Castle Rock Water Commission

Todd Warnke, Chair Amy Blackwell, Vice Chair Castle Rock Water Commission Ernie Foerster Meeting Minutes Clark Hammelman Caryn Johnson Don Trujillo Katherine Redmond Wednesday, September 26, 2018 6:00 PM Castle Rock Water 175 Kellogg Ct., Bldg. 183 Castle Rock, CO 80109 This meeting is open to the public. Three or more Council members may also attend this meeting, during which the items listed herein will be discussed CALL TO ORDER / ROLL CALL Present 6 - Caryn Johnson, Clark Hammelman, Ernie Foerster, Chair Todd Warnke, Vice Chair Amy Blackwell, and Katherine Redmond Not Present 1 - Don Trujillo Attendance 5 - Mark Marlowe, Matt Benak, Anne Glassman, Sandra Aguilar, and Melinda Pastore Commissioner Redmond arrived at 6:10 p.m. Guest: Charles Fletcher attended the first portion of the meeting to introduce himself to the commission. Mr. Fletcher is running for Mayor and he is a former Chair of the Castle Rock Water Commission, as well as a current member of the Planning Commission. He encouraged meeting attendees to educate themselves regarding the upcoming election and to vote. COUNCIL UPDATE Mr. Marlowe updated the commission on some of the recent Town Council activity, including the appointment of Norris Croom as the new Fire Chief; approval of the 2019 budget; approval of the ordinance levying general 2018 property taxes (first reading); approval to move forward with the widening of Plum Creek Parkway; amendment to the distance requirement for liquor licensing restrictions from schools; and approval of the ordinance amending water Tier 2 and 3 rates and water, wastewater and water resources system development fees. Council also heard a presentation on traffic signal operation practices, and on Sept. 12th, they had a work session on Dawson Ridge. COMMISSION COMMENTS Commissioner Johnson thanked staff for assisting her with a landscaping project in Castlewood Ranch, whereby turf was removed to conserve water. Commissioner Blackwell noted that the commission may have upcoming vacancies, since two of the commissioners are running for Town Council. Commissioner Blackwell thanked Mr. Marlowe and staff for supporting her project while she worked to receive her Water Studies online certification through Metropolitan State University. ADMINISTRATIVE BUSINESS Castle Rock Water Commission Meeting Minutes September 26, 2018 WC 2018-097 Approval of the August 22, 2018 Meeting Minutes It was moved by Commissioner Blackwell and seconded by Commissioner Johnson to approve the meeting minutes of August 22, 2018. Yes: 6 - Johnson, Hammelman, Foerster, Chair Warnke, Blackwell, and Redmond Not Present: 1 - Trujillo ACTION ITEMS (HIGH PRIORITY / TIME CRITICAL) WC 2018-098 Modified Agreement for Acquisition of Chatfield Reservoir Reallocation Project Shares from the State of Colorado Town Council Meeting Date: Oct. 2, 2018 Mr. Benak presented this item. This project is for renewable water storage, which is a key part of the long-term water plan. In 2015 the Town entered into a multi-year agreement with the Colorado Water Conservation Board (CWCB) to purchase shares in the Chatfield Storage Reallocation Project. The agreement has allowed the Town to spread out the project costs over time. This option agreement provides a creative way to leverage the Town's financial resources similar to a long-term loan, at less than one percent interest. The Town's current ownership is 374 acre-feet (AF). Castle Rock Water is proposing a modified option agreement with CWCB to increase the optioned amount of storage space by 500 AF, so that Castle Rock Water may eventually own 2,000 AF of storage space in Chatfield Reservoir. There are multiple benefits to this option agreement and the value of this storage will likely increase in the future. The project is expected to be completed in 18 months, and Spring of 2020 is when the first storage is expected. It was moved by Commissioner Blackwell and seconded by Commissioner Johnson to recommend Town Council approval of the Modified Agreement for Acquisition of Chatfield Reservoir Reallocation Project Shares from the State of Colorado, as presented. Yes: 6 - Johnson, Hammelman, Foerster, Chair Warnke, Blackwell, and Redmond Not Present: 1 - Trujillo DIRECTOR FOLLOW-UP AND INFORMATIONAL / UPDATE ITEMS WC 2018-099 Plum Creek Water Purification Facility Advanced Treatment Update Town Council Meeting Date: Sept. 18, 2018 Mr. Marlowe updated the commission on the Plum Creek Water Purification Facility (PCWPF) Advanced Treatment Project, which Town Council received an update on Sept. 18th. The previous update to council on June 18, 2018, identified Town funding of a Professional Services Agreement with Burns & McDonnell Engineering for project design, and a lease agreement with Intuitech, Inc. for pilot testing of advanced treatment processes. The pilot testing at the diversion in Sedalia has been completed and was very successful (a new treatment process was tested). Following the June update to council, a pre-construction services agreement was awarded to Garney Companies. Castle Rock Water Commission Meeting Minutes September 26, 2018 Two work packages are being planned for design and construction. Work Package One will include a one million gallon raw water blending tank and procurement of advanced treatment equipment packages. This is expected to be presented at Town Council in Dec. 2018. The remainder of the project will be included in Work Package Two, with presentation at Town Council expected in March 2019. The initial guaranteed maximum price that the Town, contractor and engineer have agreed to work to meet is $26.9 million about $1.7 million more than projected in June 2018. WC 2018-100 Irrigation Water Budgets Project Timeline for Non-Residential Customers Ms. Glassman updated the commission on the progress and timeline for incorporating irrigation water budget adjustments for non-residential customers (about 900 accounts). This fall Castle Rock Water will engage a company (Sanborn) to conduct a flyover of the non-residential irrigable areas. Prior to the 2019 irrigation season each customer will be given their 2018 actuals compared to budget, 2019 budget and their new proposed 2020 budget. Each month during the 2019 irrigation season, staff will provide each customer their 2019 budget compared to actual usage, and their new proposed 2020 budget compared to the 2019 usage, so they can begin to manage within budget with no financial impact in 2019. In 2020, the expectation is that customers will be maintaining usage at or below the new 2020 adjusted budgets to avoid a financial impact into higher rate tiers. This gives customers one irrigation season to review actual to budget usage and make adjustments as needed. This topic will likely come back to commission in October, for a recommendation on new customers in January 2019 so their budgets do not have to be fixed later (they would start out with the appropriate budget). Commissioner Hammelman asked if council approval is needed for the two different approaches (new customers in January 2019 vs. existing customers). Mr. Marlowe responded that a change to code may be required, and staff should have code sections available for discussion with commission in October. Castle Rock Water plans to present this topic to Town Council by the end of this year. WC 2018-101 Construction Contract with Hydro Resources - Rocky Mountain, Inc. for Wells CR-228, CR-229 and CR-230 Town Council Meeting Date: Sept. 18, 2018 Mr. Marlowe informed the commission that on Sept. 18th, Town Council approved a construction contract with Hydro Resources - Rocky Mountain, Inc. for the construction, drilling, completion, testing, and pumping equipment installation of the Lanterns Well project, which includes the construction of three new Denver Basin wells that will supply water to the Plum Creek Water Purification Facility. The new wells will help to firm the supplies from the existing Denver Basin infrastructure. Leonard Rice Engineers, Inc. was selected for the professional services associated with construction of the three wells at the Lanterns well site. Work on the project will begin in Oct., 2018. Castle Rock Water Commission Meeting Minutes September 26, 2018 Commissioner Hammelman asked who owns the well site property. Mr. Marlowe replied it is on open space the Lanterns is dedicating to the Town. WC 2018-102 Follow-up Discussion on Commission Community Interaction Commissioner Blackwell said she met with Mark Marlowe and they discussed community outreach. When there are vacancies on the commission residents might be more likely to apply if the commission was more visible. A reason for increased community outreach on the water commission would be to have an engaged and informed public. Four objectives are: 1) Meeting venue change for more exposure, 2) Commission collateral in the CR Water lobby, 3) Commission members posting sharables on social media, which would be uniform and generated by community relations staff, and 4) Informal, word-of-mouth engagement by commissioners to their families and neighbors (to let them know what the commission does and invite them to meetings). Sandi Aguilar presented her staff report on commission exposure, which summarizes current and possible future outreach (touch points). The primary outlet for information on the Castle Rock Water Commission is the commission web page on CRgov.com. Mr. Marlowe brought this topic to the Town's department head meeting to ensure consistency among Town boards and commissions. In addition, he has been discussing this with Community Relations to learn what additional workloads this would create for staff, as well as the benefits. Feedback is expected in a few weeks. Chair Warnke said he thought it would be a great idea to change the meeting venue sometimes. Mr. Marlowe said that perhaps an upcoming meeting could be held at the Peter Binney Water Treatment Plant in Aurora, which processes WISE water. Meetings have been held at other locations in the past. Once the new administration building is constructed, the current plan is to hold most meetings there (access will be improved). Commissioner Hammelman didn't think there would be much public interest in attending Castle Rock Water Commission meetings, unless a proposed rate increase was on the agenda. Therefore, he didn't think the commission should make changes, except perhaps as it relates to social media. Commissioner Johnson said that as a resident, before she was on the commission, she was more interested in attending council meetings since that is where the decisions are made. Mr. Marlowe said information about the commission could be put in the Castle Rock Water lobby. Chair Warnke suggested that Town Council mention the commissions at their meetings. Mr. Marlowe said he would discuss this with the Town Manager, and maybe this topic will be added to an upcoming Town Council work session. WC 2018-103 Dawson Ridge/Westfield and Crystal Valley Ranch Interchange (no memo) Mr. Marlowe updated the commission on the Sept. 12 work session council had regarding Dawson Ridge. There is a development company, the Greenwood Group, interested in developing the Dawson Ridge area. The entire Dawson Ridge area is under a suspension agreement with theTown. When, and if, the Dawson Ridge area is developed, the development fees will be helpful in funding the Crystal Valley I-25 interchange (which will probably be needed within ten years). In 1984 the development agreement was done and a large development was approved (24 Castle Rock Water Commission Meeting Minutes September 26, 2018 million square feet of commercial and 7,900 residential units), likely before the Town had a clear understanding of water issues. This large development is not included in the current water plan, so the developer is required to come back with a water service plan for the whole area because of the suspension agreement. The Greenwood Group has asked council to waive the suspension agreement; however, Castle Rock Water strongly advises them not to. WC 2018-104 Castle Rock Water Proposed Administrative Building Drawings of the proposed new administrative building at Castle Rock Water were included in the meeting packets. The new building would be added onto the existing administrative building. Once built, the three temporary trailers will go away. Design of the addition will begin in 2019, with construction in 2020 and occupancy anticipated by year-end 2020. WC 2018-105 Household Chemical Roundup Event at Castle Rock Water on Sept. 29, 2018 Mr. Marlowe reminded the commission about the Household Chemical Roundup event, scheduled at Castle Rock Water on Sat., Sept. 29th. Commissioner Johnson has signed-up to volunteer. WC 2018-106 Gold Leader Award from the Colorado Department of Public Health and Environment (CDPHE) Environmental Leadership Program Town Council Meeting Date: Oct. 16, 2018 Mr. Marlowe proudly informed the commission that Castle Rock Water will be presented with the Gold Leader Award from the Colorado Department of Public Health and Environment (CDPHE), Environmental Leadership Program (ELP), on Oct. 9, 2018. The Gold Leader Award recognizes organizations that have gone above and beyond compliance with state and federal regulations, and are committed to continual improvement. Involvement in the ELP is voluntary, and Gold Leaders are organizations with a fully operational, facility-specific Environmental Management System (EMS). WC 2018-107 Your Town Academy - Water on Oct. 8, 2018 (no memo) Castle Rock Water is on the Your Town Academy schedule on Oct. 8th. Tim Friday, Assistant Director, will be running it for the water department. Commissioner Johnson said she will be participating. WC 2018-108 2018 Denver Basin Well Rehabilitation Project Town Council Date: October 16, 2018 Mr. Marlowe added this topic to the agenda, as rehabilitation of some of the deep wells is needed as soon as possible. Eight wells have had significant failures and need work. On Oct. 16th, Castle Rock Water will be asking Town Council to approve a contract with Applied Ingenuity to begin well rehabilitation work immediately, so that the wells are back on-line for irrigation season next year. It was moved by Commissioner Hammelman and seconded by Commissioner Foerster to recommend Town Council approval of the contract with Applied Ingenuity, as presented. Castle Rock Water Commission Meeting Minutes September 26, 2018 Yes: 5 - Johnson, Hammelman, Foerster, Blackwell, and Redmond Not Present: 2 - Chair Warnke, and Trujillo COMMISSIONER MEETING COMMENTS Commissioner Johnson said she recently learned there is significant methamphetamine use in the central valleys of California, which caused the effluent pH in the water to drop significantly. Mr. Marlowe responded that wastewater is a good indicator of this problem and that this has to be treated in our reuse water. Commissioner Blackwell brought her water studies materials to the meeting and offered to loan them to meeting attendees. Meeting adjourned at 7:50 p.m.