Castle Rock Town Council Meeting – September 3, 2024

The Castle Rock Town Council met Tuesday, September 3, 2024, at 6:00 p.m. in the Town Hall Council Chambers. All seven councilmembers were present: Mayor Gray, Mayor Pro Tem LaFleur, and Councilmembers Hollingshead, Cavey, Bracken, Brooks, and Dietz. The Council adopted the consent calendar, approved first-reading ordinances for the FY 2025 budget, utility rates and fees, property tax levy, and water-demand calculation, approved the 2025-2029 financial plan and CIP, approved a regional Proposition 123 housing agreement, approved a fire station design contract, and approved a rezoning for a Sandstone Care adolescent mental health facility on a 5-2 vote. Council also directed the Town Attorney to begin conversations with Douglas County and other local governments about suing Denver over its migrant policies. The meeting adjourned to executive session at 8:35 p.m. and did not return.

Council Comments and Direction

• Councilmember Brooks made a motion, seconded by Councilmember Cavey, to direct the Town Attorney to begin conversations with Douglas County and other impacted municipalities and to sue Denver to stop bringing in additional migrants. Brooks said Denver lacks services and housing and the issue is spilling into other communities. Mayor Gray spoke in favor, noting his mother immigrated legally; Councilmember Dietz also spoke in favor, saying public safety resources should not be diverted. The motion passed 7-0.
• Councilmembers Cavey, Bracken, and Dietz commented on the Pine Canyon development, which is in unincorporated Douglas County but within the Castle Rock area. They opposed the county deciding the project and encouraged public participation at the September 10 Douglas County meeting; Dietz said it should be held to Castle Rock standards.

Public Comments & Testimony

• Juliet Smith, a Castle Rock resident, raised concerns about the pedestrian crossing on Meadows Boulevard at Spring Meadow Lane/Circle, near parks and school routes. She said the Safe Streets Action Plan was insufficient and asked for an improved crossing. Town Manager David Corliss said staff would follow up.
• During the Metzler Ranch/Sandstone hearing, public speakers included:
  • Laura Martinez, a Sandstone outreach manager and 21-year Castle Rock mom, who shared a personal story about her daughter needing out-of-state care and supported the facility.
  • Mark Davis, a resident, who conveyed neighbors' concerns about locked doors, security on site, and clear criteria for youth in the facility.
  • Les Lilly, a school district employee for more than 40 years, who supported the amendment.
  • Montee Ball, former Denver Bronco, father, and Sandstone clinical manager, who spoke about his own mental health recovery and supported the facility.
  • Keith Hayes, director of recovery at 5280 Recovery High School, who supported Sandstone and said more than 50% of his students are from Douglas County.
• No other public speakers came forward during the remaining advertised public hearings.

Town Manager and Staff Updates

• Mark Marlowe, Director of Castle Rock Water, presented a Coloradoscape update. He reported that homes installed after January 1, 2023 are using less than half the irrigation-season water of older homes, and that 51% of builders so far are only installing front yards. He identified problems with gate functionality, hardscape, and lack of visual interest, and proposed changes such as safe access paths, more plant variety, 75% vegetative coverage, and possibly removing the credit for builders who install backyards. Councilmembers asked about homebuilder feedback and cost; Marlowe said builders had been consulted and that Coloradoscape has a wide cost range.
• Tara Vargish, Director of Development Services, provided updates on development applications, including the Lewis Street home, the Unity on Wellspring rezoning, Centennial Park court improvements, and other pre-applications.

Consent Calendar

• Approved 7-0: RES 2024-092 (services agreement with Consor North America, Inc. for the Plum Creek Pipeline Central to PCWPF Project); RES 2024-093 (equipment and services agreement with Logical Systems, LLC for SCADA Master Plan Phase IV); a proclamation honoring Castle Rock Mental Health Co-Responders and Crisis Clinicians; and the August 20, 2024 draft minutes.

Quasi-Judicial Hearings

• ORD 2024-012 — Second reading of the amendment to the Metzler Ranch Planned Development zoning regulations at 864 Barranca Drive to allow Sandstone Care to operate an adolescent inpatient mental health facility for mild-to-moderate conditions, with prohibited uses including severe conditions, substance abuse, court-ordered treatment, and youth with violent or sexual offenses. The applicant said the facility is voluntary and not a locked psychiatric stabilization facility. Approved 5-2, with Councilmembers Cavey and Dietz voting no. Cavey said she supported the service but not the location and had not received support from surrounding neighbors; Dietz expressed concern about the residential rezone.
• ORD 2024-014 and ORD 2024-015 — Annexation and initial PL1 zoning of town-owned parcels totaling 1.992 acres in Douglas County (Four Corners, South Ridge Road No. 1, South Ridge Road No. 2, and Gilbert Street/Plum Creek Parkway). Planning Commission recommended approval 6-0. Both ordinances were approved 7-0. Agenda and transcript indicate first reading; the final minutes contain a conflicting "Second Reading - Approved on First Reading" label for these items.

Advertised Public Hearings and Action Items

• ORD 2024-016 — FY 2025 budget, first reading, approved 7-0. Town Manager David Corliss introduced new Budget Manager Kathi Ingle. The budget includes public safety positions, road projects, and water infrastructure; if voters approve the November sales tax measure, it funds 40 police/fire positions over five years, with more than half in 2025. Councilmember Bracken recognized Finance Director Trish Muller's work during staffing shortages.
• ORD 2024-017 — Utility rates, fees, and surcharges, first reading, approved 7-0. The proposed increase on the average bill is about 4.4%, and system development fees increase about 8.3%. Marlowe cited PFAS treatment costs, staffing shortages, planned debt, and continued competitiveness with South Metro providers.
• ORD 2024-018 — 2024 property tax levy collected in 2025, first reading, approved 7-0. Staff projected no levy increase and said the levy would be about $40 on a median-valued home.
• RES 2024-094 and RES 2024-095 — 2025-2029 Balanced Financial Plan and Five-Year Capital Improvement Program, approved 7-0 each. Staff noted that several major road projects remain unfunded, including Prairie Hawk widening, Plum Creek Parkway widening, Highway 86, and Perry Street extension.
• RES 2024-096 — Intergovernmental agreement for joint management of Proposition 123 funding and credits among Castle Rock, Douglas County Housing Partnership, Douglas County, Castle Pines, Lone Tree, and Parker, approved 7-0. Castle Rock's Prop 123 commitment is 277 affordable units by the end of 2026; 42 permits have been issued to date, and countywide jurisdictions were at about 302 units as of July 2024.
• RES 2024-097 — Design and engineering services agreement with RS&H, Inc. for Fire Station 156 and fleet facility, approved 7-0. The contract is $714,000 plus a 10% contingency, for a total of $786,000. Fire Chief Croom said about $6.3 million is currently available toward an initial estimated project cost of $16.3 million, with the balance expected from certificates of participation.
• ORD 2024-019 — Amendment to allow the IAPMO Water Demand Calculator for residential water calculations only, first reading, approved 7-0. Marlowe said the change affects supply-side pipe sizing, can save about $850 per home, and supports possible future high-efficiency toilet requirements.

Executive Session

• Approved 7-0 to adjourn to executive session with the Town Attorney for legal advice in the matter of Church of the Rock, Inc., d/b/a The Rock v. Town of Castle Rock, Colorado, Case No. 1:24-cv-1340-DDD-KAS. The meeting adjourned at 8:35 p.m. and did not return to open session.

Documentation Note

• For several ordinances listed on the agenda as first readings, the final minutes contain the phrase "Second Reading - Approved on First Reading on September 3, 2024." This summary follows the agenda and transcript, which identify ORD 2024-014, 2024-015, 2024-016, 2024-017, 2024-018, and 2024-019 as first readings.

Key Outcomes

• Denver migrant litigation direction: passed 7-0.
• Metzler Ranch/Sandstone rezoning: approved 5-2.
• Annexation and initial zoning of 1.992 acres: each approved 7-0.
• FY 2025 budget, rates/fees, property tax, financial plan, CIP, Prop 123 IGA, fire station contract, and IAPMO ordinance: all approved 7-0.
• Executive session: approved 7-0.