SUBJECT: CONSENT
A Resolution For The Purpose Of Approving Crestone Peak Resources for Direct Delivery of Water From the FRICO Community Ditch
Title
Body
DEPARTMENT: Public Works
PRESENTER: Gary Behlen, Director of Public Works
FISCAL INFORMATION:
Cost as Recommended: N/A
Balance Available: N/A
Budget Line Item Number: N/A
New Appropriation Required: N/A
STAFF RECOMMENDATION: Approving Resolution allowing use of FRICO water supply by Crestone for industrial purposes.
Recommendation
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SUMMARY AND BACKGROUND OF SUBJECT MATTER:
The Town has been approached by Crestone Peak Resources to use a non-municipal water source for industrial purposes. Crestone has represented to the Town that it can lease water from the Farmer’s Reservoir and Irrigation Company (“FRICO”) which will be temporarily piped to their Waste Connections and Pratt well sites. The properties are located within Town boundaries but Town water is not available to be used and would otherwise have to be trucked to the site. This would be a non-municipal water supply.
Staff has received documentation from FRICO that supports Crestone’s assertion that FRICO has water rights decreed for industrial uses. The primary issue is whether the Town will agree to allow water service within Town limits from a source other than the Town. Section 8-1-5 of the Town Code addresses this issue. In order to use an outside water source, the Town needs to specifically approve of delivery of water from another system in writing.
Staff recommends approving the use of FRICO water by Crestone on its property within Town boundaries as Town water is not available and it is an alternative to trucking in water.
ATTACHMENTS:
a. Resolution
b. Vicinity Map