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Council approves amendment allowing Dominion Water to wheel additional supplies through Castle Rock system starting May 1
Summary
Council approved a second amendment to the water service intergovernmental agreement with Dominion Water and Sanitation District to allow Dominion to begin wheeling water (including Aurora supplies) through Castle Rock’s system beginning May 1; the agreement includes metering, a 5% system loss, and specified rates.
Castle Rock council unanimously approved a second amendment to the intergovernmental agreement that allows Dominion Water and Sanitation District to move additional water supplies through the town’s system beginning May 1.
Mark Marlowe, Director of Castle Rock Water, explained that Dominion — the water provider for Sterling Ranch — has an existing wheeling agreement dating to 2014 that allows movement of up to 4,000,000 gallons per day through Castle Rock’s system. Under the amendment, Dominion will also be allowed to move additional water supplies they control (including supplies associated with Aurora) through the Town’s system. Staff said Dominion has been paying standby and connection fees since 2014 and that the town will prorate the standby fee for this year because service will begin May 1.
Key financial and operational terms disclosed in the meeting: - A meter on the northeast side measures inflow and Dominion provided a meter on the outbound side; the town will reconcile monthly to account for system losses. - The town will charge 37 cents per 1,000 gallons for wheeled water; if the town must retreat the water, a treatment rate of 76 cents per 1,000 gallons applies. - The agreement includes a 5% system loss (for example, 100 acre‑feet in would be reconciled to 95 acre‑feet out).
Staff noted they had not taken the amendment to the Water Commission for a formal recommendation but had briefed the commission chair and had received no objections. Councilmember Davis moved to approve the amendment; the motion passed by unanimous roll call vote.
Why it matters: the amendment formalizes an expanded wheeling arrangement with a regional partner, establishes metering and billing terms and begins deliveries in early May. It does not reduce Castle Rock’s treated supply but adds regional operational coordination.
What’s next: staff will implement metering and monthly reconciliation procedures, collect prorated standby fees, and manage the operational coordination with Dominion.
