OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Castle Rock Town Council Meeting: Wastewater, Legislation, Annexations, and Hybrid Policy

Town Council — Tuesday, February 6, 2024
BodyCastle Rock, Colorado
SessionTown Council
DateTuesday, February 6, 2024
StatusFILED
Video Record
0:00 / 1:30:37

Transcript — Verbatim
0:18

Okay then.

0:20

With that, we'll move on to the town manager's report.

0:24

Good evening, Mayor and Council.

0:26

A couple items I'm I want to mention, and then uh uh Mark and Kristen and Tara are going to come up as well.

0:35

Uh Shannon brings up the calendar reminders.

0:44

Please let uh Shannon know if you're planning on attending the chamber um Gala here in uh February.

0:54

They're looking for final hit count in uh meal preferences, so um that would be um appropriate.

1:03

Um I believe on the 19th is the um service for JoePro, is that they have that date right on the 19th?

1:11

The 19th at two o'clock at the uh fairgrounds defense center.

1:15

So I sent you all a note on that, and we'll participate with uh flowers and uh in a card from from council.

1:23

Um the community recognizes uh Joe's service, not just to the community but to the nation.

1:29

Um and then you see the rest of the uh items there.

1:33

We've got an open house that we're gonna have up at uh the ACC uh facility there in March.

1:42

We're doing that because uh one of the heavy areas of emphasis in the pavement maintenance program this year is gonna be in the meadows um area, and um uh you'll be seeing those bids on a future council um agenda item, and we do like to let the public know what's uh what's going on.

2:00

It's a major endeavor for the community every year, so we'll have that going on as well.

2:05

The next slide uh just has one of the neighborhood meetings.

2:09

Um, and this is uh Wellspring and Castle Oaks Church's interest in the quality inn hotel.

2:18

This is not the La Kinta Inn, which is now under construction, and we participated in that project by a waiver of some of the uh the the town fees.

2:30

They have an interest in the the other hotel that is um I guess you could say is adjacent to it, is nearby of turning it into another facility as well.

2:41

So they're having a uh neighborhood meeting on February the twelfth.

2:46

So we want to let the the community and you all be reminded about that.

2:50

With that, uh Mark is gonna come up and talk about um wastewater and wastewater rates.

2:59

Everybody's favorite subject, wastewater.

3:04

Uh yes, yes, and about wastewater.

3:07

So uh I always like to say there is no wastewater, all water is water, and we want to hang on to it.

3:14

But I did want to give council an update on uh PCW Plum Creek Water Reclamation Authority's latest utility master plan update.

3:24

So they last did an update in 2017, and this was the next update.

3:28

And this plan is designed to look 20 years out at potential costs, both from a regulatory and permitting standpoint, and also from a growth and capacity standpoint.

3:39

And so they've done that.

3:41

Um and keep in mind we just finished an expansion from 6.4 million gallons a day to 9.5 million gallons a day, which most of that capacity is for us.

3:52

It's important also understand that currently Plum Creek is operating under an administratively extended permit, which means the permit is still officially for 6.4 million gallons and not nine and a half.

4:06

Um, but the permit has been extended.

4:09

We are supposed to get a new permit for the facility at some point here in the near future.

4:15

Um the big the big news with this 20-year lookout is there's a potential for a significant need for capital investment to meet permit requirements that may be coming down the line, as well as to a lesser extent growth requirements, of course, for Castle Rock.

4:32

And I just wanted to make this council aware of that.

4:35

So in theory, they're talking about as much as 295 million dollars worth of improvements over the next 20 years, the next two decades, which is a big number.

5:02

If we were to get a new permit this year that included all of the requirements that may be coming down the line here.

5:12

And I'll talk a little bit more about that in a minute.

5:15

Of the 295 million, it's important to remember that we're about 76% of the total cost in terms of the capacity that we own and operate.

5:23

So that's 223 million.

5:26

Of that, about 188 million is related to the regulatory requirements that may be coming down the line, and about 35 million to capacity increases that we would put in place to meet future growth.

5:40

So you can see growth is a much smaller part of this.

5:44

This just kind of gives you a worst case scenario of what this might look like in this little graph, and you can see if we got a permit in 2024, oftentimes what happens with permits is they put you on a five-year compliance schedule to come up to speed with whatever new permit requirements are put in place.

6:05

There are three in particular that were part of what we call the preliminary effluent limits that were evaluated for the plant based on the plant expansion that we just did, and that was manganese, chloride, and temperature.

6:23

And in theory, we could have to come into compliance with those in a five-year time frame.

6:29

You can also see nitrate and nitrite on there.

6:32

Those are also part of that five-year time frame.

6:36

And the problem with that is we would have to invest that $188 million of compliance over a five-year time frame, which would obviously be very difficult from a cost standpoint.

6:48

So that's really the big concern here.

6:51

You can see there's some other things on here, but they're further out towards 2043.

6:57

And quite frankly, the growth, the construction for the growth, which is the organic treatment capacity and hydraulic treatment capacity, that doesn't even start out till 2034 or beyond.

7:10

So we're looking pretty good there.

7:13

Just a couple other things to keep in mind.

7:15

These are just the regulatory issues that we currently have on the radar.

7:19

There is getting there is a lot of attention, as you guys know, on perfluoroalkyl substances, PFOS, especially on the drinking water side, but they're also looking at this on the wastewater side, especially for solids which get put on a farm out in eastern Colorado.

7:38

They're obviously concerned about that PFOS component of those solids going on the uh on the farm.

7:44

So that's being looked at.

7:46

And then you've seen a lot in the news lately about microplastics and nanoplastics, especially and bottled water, so tap water is the way to go.

7:55

Um that's just a little dig there.

7:57

I won't go into any more detail about that, but um uh one of the good things, so just just something that's that's really good for us, probably, is only about 24% of the permits in the state are currently up to date.

Discussion Breakdown — Share of Meeting
Water And Wastewater Management████████████████████20%
Legal and Judicial█████████████████17%
Public Engagement█████████████████17%
Procedural█████████████13%
Land Use████████8%
Fiscal Sustainability██████6%
Annexation█████5%
Engineering And Infrastructure████4%
Public Safety███3%
Summary of Proceedings

Castle Rock Town Council Meeting: February 6, 2024

The Castle Rock Town Council met on February 6, 2024, at 6:00 PM in the Town Hall Council Chambers. The meeting covered a wide range of topics including the town manager's report on wastewater costs and legislative updates, development activity updates, the town attorney's annual report, several annexation and zoning items, a discussion on reducing the Cobblestone Metro District mill levy, amendments to the water rights dedication code, and a policy review of electronic participation and hybrid meetings. All votes were unanimous except for the hybrid meeting policy direction.

Consent Calendar

  • Ordinance 2024-001 (Second Reading): Amending municipal code to prohibit delivery of marijuana and marijuana products within the Town. Passed 7-0.
  • Resolution 2024-010: Accepting Symetra Life Insurance Company's offer for stop loss insurance coverage for calendar year 2024. Passed 7-0.
  • Minutes 2024-003: Approval of the January 16, 2024 Town Council meeting minutes. Passed 7-0.

Public Comments & Testimony

  • Cobblestone Metro District Mill Levy: A Cobblestone resident and board member (speaker 1) stated the 10-mill levy has been a challenge, that their board has refinanced debt and cut general fund expenses, and that they respectfully request a reduction to align with other areas. A second resident (David Garris) noted the levy amounts to about 1% of home value and asked for consideration to help manage expenses.
  • Hybrid Meeting Policy: Brandy Kruger (Castle Rock resident) spoke in favor of continuing remote participation, citing her ability to attend from a ski trip and the importance of access for residents.

Discussion Items

  • Town Manager's Report – Wastewater Costs Update (Mark Marlowe): Presented the Plum Creek Water Reclamation Authority's 20-year utility master plan update, identifying a potential $295 million in capital improvements. The Town's share (76%) is $223 million, of which $188 million is regulatory-driven. Options include working with the state on site-specific standards, extended compliance schedules, temperature variances, or pursuing direct potable reuse. Councilmember Cavey asked about using site-specific studies to mitigate rate increases; staff affirmed this is part of the strategy.
  • Town Manager's Report – Legislative Update (Kristen): Staff recommended opposing four land-use bills: HB 1107 (eliminate residential occupancy cap), HB 1151 (statewide ADU standards), anticipated transit-oriented development bill tied to HUTF funds, and anticipated bill banning parking minimums. Council voted unanimously (7-0) to affirm staff's recommended positions and direct communication to the delegation.
  • Town Manager's Report – Development Services Update (Tara): Highlighted three pre-application projects: a proposed tenant at Timber Mill Parkway seeking additional parking; an annexation pre-application for RV storage south of Crystal Valley Interchange; and a demolition permit at 104 North Lewis (historic property) requiring Historic Preservation Board review.
  • Town Attorney's Report (Michael): Presented the 2023 annual report, introducing new legal team members and providing statistics: 849 contracts drafted, 43 ordinances, 142 resolutions, 94 real property documents. The Town Attorney noted the office handles high volume with lean staff.
  • Advertised Public Hearing – Tower Open Space Annexation (Item 11): Ordinance 2024-002 to annex 3.76 acres of town-owned land (between Metzler Ranch and Canyons Far South). Staff recommended approval; no public comments. Passed 7-0.
  • Quasi-Judicial Hearing – Tower Open Space Initial Zoning (Item 12): Ordinance 2024-003 to zone the same parcel as PL2 (Public Land). Staff recommended approval; no public comments. Passed 7-0.
  • Quasi-Judicial Hearing – RidgeView Town Center Annexation Eligibility (Item 13): Resolution 2024-011 finding the 10.5-acre property eligible for annexation under state law. 100% landowner petition, meets contiguity and other requirements. Staff recommended approval; no public comments. Passed 7-0.
  • Additional Advertised Public Hearing – Cobblestone Metro District Mill Levy (Item 14): Discussion on phasing down the existing 10-mill levy (for fire/EMS services) to the standard 5 mills. Staff proposed phasing down by 1 mill per year for five years once the new Fire Station 156 becomes operational (expected 2026). The current levy generates over $400,000/year. Public comments supported the reduction. Council voted unanimously (7-0) to direct staff to prepare a revised intergovernmental agreement.
  • Additional Advertised Public Hearing – Water Rights Dedication Code Amendment (Item 15): Ordinance 2024-004 (First Reading) amends Chapter 4.04 to waive adjudication/title opinion requirements for small parcels, remove credit for non-tributary groundwater, and require dedication of tributary water rights. Water Commission recommended approval. Passed 7-0.
  • Additional Discussion – Hybrid Meeting Policy (Item 16): Staff presented options (continue hybrid, or move to electronic participation for council only). Council debated pros and cons; some members favored continuing remote public comment (Ryan Hollingshead, Max Brooks), while others preferred in-person engagement (Kevin Bracken, Tim Dietz). Mayor Gray noted the risk of disruptions and that we have been fortunate. A motion to direct staff to bring back a resolution updating the policy (allowing electronic participation for council but potentially ending fully hybrid meetings) passed 4-3 (Brooks, Bracken, Dietz, Gray in favor; Hollingshead, Cavey, LaFleur against).

Key Outcomes

  • Consent Calendar: Approved unanimously (7-0).
  • Tower Open Space Annexation (Item 11): Ordinance approved on first reading 7-0.
  • Tower Open Space Zoning (Item 12): Ordinance approved on first reading 7-0.
  • RidgeView Town Center Eligibility (Item 13): Resolution approved 7-0.
  • Cobblestone Metro District Mills (Item14) Directive to staff to prepare revised IGA; passed7-0.
  • Water Rights Code Amendment (Item15) : Ordiance approved on first reading7-0.
  • Hybrid Meeting Policy (Item16) : Motion to direct staff to bring back proposed resolution passed4-3 (Brooks,Bracken,Dietz,Gray yes; Hollingshead,Cavey,LaFleur no).
  • Executive Session (Item17) : Approved7-0 to adjourn for legal advice on Pine Canyon rezoning application.

Meeting Transcript

Okay then. With that, we'll move on to the town manager's report. Good evening, Mayor and Council. A couple items I'm I want to mention, and then uh uh Mark and Kristen and Tara are going to come up as well. Uh Shannon brings up the calendar reminders. Please let uh Shannon know if you're planning on attending the chamber um Gala here in uh February. They're looking for final hit count in uh meal preferences, so um that would be um appropriate. Um I believe on the 19th is the um service for JoePro, is that they have that date right on the 19th? The 19th at two o'clock at the uh fairgrounds defense center. So I sent you all a note on that, and we'll participate with uh flowers and uh in a card from from council. Um the community recognizes uh Joe's service, not just to the community but to the nation. Um and then you see the rest of the uh items there. We've got an open house that we're gonna have up at uh the ACC uh facility there in March. We're doing that because uh one of the heavy areas of emphasis in the pavement maintenance program this year is gonna be in the meadows um area, and um uh you'll be seeing those bids on a future council um agenda item, and we do like to let the public know what's uh what's going on. It's a major endeavor for the community every year, so we'll have that going on as well. The next slide uh just has one of the neighborhood meetings. Um, and this is uh Wellspring and Castle Oaks Church's interest in the quality inn hotel. This is not the La Kinta Inn, which is now under construction, and we participated in that project by a waiver of some of the uh the the town fees. They have an interest in the the other hotel that is um I guess you could say is adjacent to it, is nearby of turning it into another facility as well. So they're having a uh neighborhood meeting on February the twelfth. So we want to let the the community and you all be reminded about that. With that, uh Mark is gonna come up and talk about um wastewater and wastewater rates. Everybody's favorite subject, wastewater. Uh yes, yes, and about wastewater. So uh I always like to say there is no wastewater, all water is water, and we want to hang on to it. But I did want to give council an update on uh PCW Plum Creek Water Reclamation Authority's latest utility master plan update. So they last did an update in 2017, and this was the next update. And this plan is designed to look 20 years out at potential costs, both from a regulatory and permitting standpoint, and also from a growth and capacity standpoint. And so they've done that. Um and keep in mind we just finished an expansion from 6.4 million gallons a day to 9.5 million gallons a day, which most of that capacity is for us. It's important also understand that currently Plum Creek is operating under an administratively extended permit, which means the permit is still officially for 6.4 million gallons and not nine and a half. Um, but the permit has been extended. We are supposed to get a new permit for the facility at some point here in the near future. Um the big the big news with this 20-year lookout is there's a potential for a significant need for capital investment to meet permit requirements that may be coming down the line, as well as to a lesser extent growth requirements, of course, for Castle Rock. And I just wanted to make this council aware of that. So in theory, they're talking about as much as 295 million dollars worth of improvements over the next 20 years, the next two decades, which is a big number. If we were to get a new permit this year that included all of the requirements that may be coming down the line here. And I'll talk a little bit more about that in a minute. Of the 295 million, it's important to remember that we're about 76% of the total cost in terms of the capacity that we own and operate. So that's 223 million. Of that, about 188 million is related to the regulatory requirements that may be coming down the line, and about 35 million to capacity increases that we would put in place to meet future growth. So you can see growth is a much smaller part of this. This just kind of gives you a worst case scenario of what this might look like in this little graph, and you can see if we got a permit in 2024, oftentimes what happens with permits is they put you on a five-year compliance schedule to come up to speed with whatever new permit requirements are put in place. There are three in particular that were part of what we call the preliminary effluent limits that were evaluated for the plant based on the plant expansion that we just did, and that was manganese, chloride, and temperature. And in theory, we could have to come into compliance with those in a five-year time frame. You can also see nitrate and nitrite on there. Those are also part of that five-year time frame. And the problem with that is we would have to invest that $188 million of compliance over a five-year time frame, which would obviously be very difficult from a cost standpoint. So that's really the big concern here. You can see there's some other things on here, but they're further out towards 2043.

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