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Council approves amended intergovernmental water agreement with Dominion Water
Summary
Castle Rock approved an amended intergovernmental agreement with Dominion Water and Sanitation District to clarify accounting and renewable-replacement-fee language, firming rules for WISE water and anticipated further firming agreements; council vote was unanimous.
The Castle Rock Town Council unanimously approved an amended and restated intergovernmental agreement with Dominion Water and Sanitation District on Feb. 1, updating accounting procedures and the renewable water-replacement fee tied to nonrenewable groundwater firming.
Water Director Mark Marlowe told council the agreement clarifies how Dominion’s WISE (Water Infrastructure and Supply Efficiency) deliveries are firmed and how nonrenewable groundwater is accounted for and replaced over time. Under current firming terms, the town provides nonrenewable groundwater when Dominion receives less WISE water than expected; the amendment updates accounting and clarifies the replacement fee that funds renewable supply acquisition.
Marlowe said Dominion has invested about $6.6 million in the town’s system to date and will pay an additional roughly $750,000 over the next five years under the agreement. He also described potential future agreements to provide additional firming supplies (about 1,380 acre-feet) and to use Dominion’s Eastern Regional Pipeline for extended service areas.
Councilman and staff explained that the arrangement benefits both parties: the district gains reliability through firming and timing flexibility, while the town receives revenue and additional water supplies. The Castle Rock Water Commission recommended approval and staff supported the resolution.
The council approved the resolution on a unanimous roll-call vote.
