Final negotiations are beginning with the two groups that are poised to provide the Town with a significant amount of the water that it needs to accomplish its long-term water goals.

Town Council on Tuesday voted 6-1 in favor of pursuing a hybrid solution for the Town’s long-term water goals. Town staff will enter negotiations with Stillwater Resources and the WISE partnership, which could result in renewable water being imported into Town within a couple of years.

The effort is part of the Town’s Legacy Water Projects, which aim to get the Town to a 75 percent renewable water supply by the time it reaches its build-out population, projected to occur around the year 2065.

Council since May had been considering proposals from four potential long-term water providers, which were solicited through a 2011 process. In June, Council decided that a renewable water solution for the full build-out population would be too expensive for the current population to bear. So, Town staff and a team of water experts set out to find a solution that could be implemented with affordable costs spread out across a larger customer base.

“This project team felt that the WISE-Stillwater combination hybrid solution provided the best value and had the best opportunity to succeed,” said Castle Rock Utilities Director Ron Redd, adding that all four proposals had both benefits and challenges.

Contracting with the two providers will offer the Town a secure, flexible and diverse water supply, Redd said.

WISE is a partnership among Aurora Water, Denver Water and the South Metro Water Supply Authority. The Town does not have to purchase expensive water rights with the project, which also has lower infrastructure costs than some of the other options, Redd said.

Stillwater also offers partnership opportunities with both public and private entities, which will be explored as the negotiation process continues. As part of this agreement, the Town will receive water rights now yet defer infrastructure expenses, spreading out the overall cost across a larger customer base.

This hybrid solution will provide one-half to two-thirds of the water – 3,000 to 4,000 acre-feet – that the Town anticipates needing at build out. The actual amount secured will depend on the final agreements negotiated. A typical Castle Rock household uses about one-half an acre-foot of water per year.

Council will need to approve agreements with the providers when definitive terms are reached. That could take a few months for the WISE project and up to nine months for the Stillwater project, Redd said. Staff will provide Council with public updates every six to eight weeks as the negotiations play out.

“These negotiations that we are entering into are the next step to get the Town to a renewable water supply in a financially responsible and efficient manner, using partnerships and existing resources,” said Castle Rock Mayor Paul Donahue.

The Castle Rock Utilities Commission, comprised of resident volunteers, supported the concept of the hybrid solution. The projects will be funded through user charges and fees comparable to those the Town has expected since 2006. A detailed rates and fees study will be conducted to determine the actual rates, once project details are finalized.

Town Council in June decided it was not in favor of pursuing a property tax, because it would put an unequal funding burden on business owners over homeowners. Additionally, a property tax would not consider a customer’s actual water usage in determining their total water costs.

Virtually all of the Town’s water currently is nonrenewable groundwater. Groundwater will remain part of the Town’s water supply, but the Town’s dependence on that nonrenewable source must be reduced in order for the Town’s water system to remain sustainable.

The renewable water process is one of three main components of the Legacy Water Projects. The other two components are: 1) storage space in Rueter-Hess Reservoir near Parker, which is planned for use as part of the Town’s renewable water solution; and 2) the Plum Creek Water Purification Facility that will open next year in Castle Rock to treat renewable water from East Plum Creek for Town use.