HomeMy WebLinkAboutWater District ContractBASALT WATER CONSERVANCY DISTRICT
WATER ALLOTMENT CONTRACT NO. 856
Pursuant to C.R.S. 537-45-737
KBBS HOLDINGS, LLC, a Colorado limited liability company ("Applicant") has applied
to the Basalt Water Conservancy District ("District") a political subdivision of the State of
Colorado, organized pursuant to and existingby virtue of Section 37-45-10L, Colorado Revised
Statutes, et seq., for an allotment contract for beneficial use of water rights owned, leased, or
hereafter acquired by the District {"Contract"). By execution of this Contract, Applicant agrees
to the following terms and conditions and those certain terms and conditions set forth in the
attached Order, which is fully incorporated as a part of this Contract.
1. QUANTITY: In consideration of the covenants and conditions herein contained,
Applicant shall be entitled to receive and apply to beneficial use 0.033 cubic feet of water per
second from the District's direct flow rights and 0.2 acre feet per year of storage or other
augmentation water owned or controlled by the District. Applicant shall restrict actual
diversions and consumptive use under this Contract to these amounts. The Contract amount is
based on the water requirements table attached hereto as Exhibit A. Any increase or change in
the water requirements to be served by the District will require an amendment to the subject
Contract.
2. SOURCE OF ALLOTTED WATER: Water rights allotted pursuant to this
Contract shall be from the District's water rights decreed to the Basalt Conduit, Landis Canal,
Stockman's Ditch Extension, Troy and Edith Ditch, Robinson Ditch, or other water rights
hereafter acquired by the District, including the District's right to receive storage water from
Ruedi Reservoir and Green Mountain Reservoir. The District shall have the right to designate
the water right or Decree of the District from which the Applicant's allotted rights shall be
obtained. The Applicant's use of any of the District's water rights shall be subject to any and all
terms and conditions imposed by the Water Court on the use of the District's said rights.
Exchange or augmentation releases made from the District's storage rights in Ruedi or Green
Mountain Reservoirs or other works and facilities of the District shall be delivered to the
Applicant at the outlet works of said storage facility and release of water at such outlet works
shall constitute full performance of the District's delivery obligation. Delivery of water from the
District's storage rights in Ruedi or Green Mountain Reservoir shall be subject to the District's
lease contract with the United States Bureau of Reclamation and any rules and regulations
promulgated pursuant thereto. Releases from other facilities available to the District shallbe
subject to the contracts, laws, rules, and regulations governing releases therefrom.
Furthermore, the District hereby expressly reserves the right to store water and to make
exchange releases from structures that may be built or controlled by the Dstrict in the future, so
long as the water service to the Applicant pursuant to this agreement is not impaired by said
action.
3. At Applicant's request, this water allotment contract supply and Applicant's
structure(s) benefited hereunder have been included in the District's umbrella plan for
augmentation decreed in Case No. 02CW77 ("Umbrella Plan"). Applicant agrees to pay
7
$1,200.00 for inclusion in the Umbrella Plan contemporaneously with acceptance of this Order,
unless otherwise agreed in writing by the parties, which amonnt is based on and limited to the
type(s) and amount of water use made by Applicant as detailed in Exhibit A to this Water
Allotment Contract.
4. PUBPOSE AND LOCATION OF USE: Applicant will use the water rights
allotted pursuant to this Contract for beneficial purposes by diversion at Applicant's point of
diversion under the District's direct flow water rights and,/or for use by augmentation or
cxchange. Applicant will usc the watcr allottcd by thc District within or through facilities or
upon lands owned, operated, or served by Applicant, which lands are described as the SEl/4
SEI/4of Section 12, Township 6 South, Range 89 West of the 6th Principal Meridian, County of
Garfield, State of Colorado; provided that the location and purpose of Applicant's use of said
water shall be legally recognized and permitted by the applicable governmental authority
having jurisdiction over the property served. Applicant's contemplated usage for the water
allotted hereunder is for the following use or uses:
X Domestidlrtlunicipal _lndustrial _Commercial _Agricultural _Other
It is acknowledged that certain locations within the District may not be susceptible to
service solely by the District's water rights allotted hereunder or the District's said water rights
may not satisfy Applicant's needs and purposes. To the extent that service cannot be achieved
by use of the District's allotted water rights, or in the event said service is inadequate, Applicant
may utilize such other water rights, by way of supplementing the District's water rights, or
otherwise, as is necessary to assure water service sufficiently reliable for Applicant's intended
PurPose or PurPoses.
All lands, facilities and areas served by water rights allotted hereunder shall be situated
within the boundaries of the District.
Any quantity of the Applicant's allocation not delivered to or used by Applicant by the
end of each water year shall revert to the water supplies of the District. Such reversion shall not
entitle Applicant to any refund of payment made for such water.
Water service provided by the District shall be limited to the amount of water available
in priority at the original point of diversion of the District's applicable water right and neither
the District, nor those entitled to utilize the District's decrees, may call on any greater amount at
new or alternate points of diversion. The District shall request the Colorado State Engineer to
estimate any conveyance losses between the original point and any alternate point and such
estirnate shall be deducted frorn this anrount in each case. The District, or anyone using the
Dstrict's decrees, may call on any additional sources of supply that may be available at an
alternate point of diversion, but not at the original point of diversion, only as against water
rights which are junior to the date of application for the alternate point of diversion.
In the event the Applicant intends to institute any legal proceedings for the approval of
an augmentation plan and/or any change to an alternate point of diversion of the District's
water right to allow the Applicant to utilize the water allotted hereunder, the Applicant shall
t
give the District written notice of such intent. In the event the Applicant develops and
adjudicates an alternate point of diversion and,/or an augmentation plan to utilize the water
allotted hereunder, Applicant shall not be obligated to bear or defray any legal or engineering
expense of the District incurred by the District for the purpose of developing and adjudicating a
plan of augmentation for the District. In any event, the District shall have the right to approve
the Applicant's application for change of water right, and/or augmentation plan or other water
supply plan involving the District's rights, and the Applicant shall provide the Districtcopies of
such application and of all pleadings and other papers filed with the Water Court in the
adjudication thereof.
The District reserves the exclusive right to review and approve any conditions which
may be attached to judicial approval of Applicant's use of the District's water rights allotted
hereunder. Applicant agrees to defray any out-of-pocket expenses incurred by the District in
connection with the allotment of water rights hereunder, including, but not limited to,
reimbursement of legal and engineering costs incurred in connection with any further water
rights adjudication necessary to allow Applicant's use of such allotted water rights; provided,
however, in the event any such adjudication involves more of the District's water rights than
are allotted pursuant to this Contract, Applicant shall bear only a pro rata portion of such
expenses. Applicant shall be solely responsible for providing the structures, works and
facilities, if any, necessary to utilize the District's water rights allotted hereunder for Applicant's
beneficial use.
5. PAYMENT: Applicant shall pay annually for the water service described herein
at a price to be fixed annually by the Board of Directors of the Dstrict for such service. Payment
of the annual fee shall be made, in full, within fifteen (15) days after the date of a notice from
the District that the payment is due. Said notice will advise the Applicant, among other things,
of the water delivery year to which the payment shall apply and the price which is applicable to
that year. If a payment is not made by the due date, a late fee of $50 (or such other amount as
the Board may set from time to time) will be assessed and final written notice of the delinquent
account and late fee assessment will be sent by the District to the Applicant at Applicant's
address set forth below. If payment is not made within thirty (30) days after said final written
notice, the District may, at its option, elect to terminate all of the Applicant's right, title, or
interest under this Contract, in which event the water right allotted hereunder may be
transferred, leased or otherwise disposed of by the District at the discretion of its Board of
Directors.
In the event water deliveries hereunder are made by or pursuant to agreement with
some other person, corporation, quasi-municipal entity, or governmental entity, and in the
event the Applicant fails to make payments as required hereunder, the District may, at its sole
option and request, authorize said person or entity to curtail the Applicant's water service
pursuant to this Contract, and in such event neither the District nor such Persons orentity shall
be liable for such curtailment.
6. APPROPRIATION OF FUNDS: The Applicant agrees that so long as this
Contract is valid and in force, Applicant will budget and appropriate from such sources of
revenues as may be legally available to the Applicant the funds necessary to make the annual
3
Payments in advance of water delivery pursuant to this Contract. The Applicant will hold
harmless the District and any person or entity involved in the delivery of water pursuant to this
Contract, for discontinuance in service due to the failure of Applicant to maintain the payments
herein required on a current basis,
7. BENEFIT OF CONTRACT: The water right allotted hereunder shall be
beneficially used for the purposes and in the manner specified herein and this Contract is for
the exclusive benefit of the Applicant and shall not inure to the benefit of any successor, assign,
or lessee of said Applicant without the prior written approval of thc Board of Dircctors of the
District.
Upon the sale of the real property to which this Contract pertains, Applicant has a duty
to make the buyer aware of this Contract and the need to assign the Contract to the buyer.
However, prior written approval of the Board of Directors of the District is required before the
assignment is effective. Payment of an assignment fee in an amount determined by the Board
shall be required as a prerequisite to approval of the assignment.
In the event the water right allotted hereunder is to be used for the benefit of land which
is now or will hereafter be subdivided or otherwise held or owned in separate ownership
interest, the Applicant may assign the Applicant's rights hereunder only to a homeowners
association, water district, water and sanitation district or other special district, or other entity
properly organized and existing under and by virtue of the laws of the State of Colorado, and
then only if such association, entity or special district establishes to the satisfaction of the Basalt
Water Conservancy District that it has the ability and authority to assure its performance of the
Applicant's obligations under this Contract. In no event shall the owner of a portion, but less
than all, of the Applicant's property to be served under this Contract have any rights hereunder,
except as such rights may exist through a homeowners association or special district as above
provided.
Any assignment of the Applicant's rights under this Contract shall be subject to and must
comply with such requirements as the District has adopted or may hereafter adopt regarding
assignment of Contract rights and the assumption of Contract obligations by assignees and
successors, provided that such requirements shall uniformly apply to all allottees receiving
District service. The restrictions on assignment as herein contained shall not preclude the
District from holding the Applicant, or any successor to the Applicant, responsible for the
performance of all or any part of the Applicant's covenants and agreements herein contained.
8. OTHER RULES: Applicant's rights under this Contract shall be subject to the
Water Service Plan as adopted by the District and amended from time to time; provided that
such Water Service Plan shall apply uniformly throughout the District among water users
receiving the same service from the District. Applicant shall also be bound by all applicable law,
including, for example, the provisions of the Water Conservancy Act of the State of Colorado,
the Rules and Regulations of the Board of Directors of the District, the plumbing advisory,
water conservation, and staged curtailment regulations, if any, applicable within the County in
which the water allotted hereunder is to be used, together with all amendments of and
supplements to any of the foregoing.
4
9. CURTAILM OF USE:The water service provided hereunder is expressly
subject to the provisions of that certain Stipulation in Case No. 81CW253 on file in the District
Court in Water Division 5 of the State of Colorado, which Stipulation provides, in part, for the
possible curtailment of out-of-house municipal and domestic water demands upon the
occurrence of certain events and upon the District giving notice of such curtailment, all as more
fully set forth in said Stipulation.
10.MAINTENANCE : Applicant shall enter into
an "Operation and Maintenance Agreement" with the District if and when the Board of
Directors finds and determines that such an agreement is required by reason of additional or
special services requested by the Applicant and provided by the District or by reason of the
delivery or use of water by the Applicant for more than one of the classes of service which are
defined in the Rules and Regulations of the Board of Directors of said District. Said agreement
may contain, but not be limited to, provision for water delivery at times or by means not
provided within the terms of standard allotment contracts of the Dstrict and additional annual
monetary consideration for extension of District services and for additional administration,
operation and maintenance costs, or for other costs to the District which may arise through
services made available to the Applicant.
11. CHANGE OF The District reserves the exclusive right to review and
approve or disapprove any proposed change in use of the water right allotted hereunder. Any
use other than that set forth herein or any lease or sale of the water or water rights allotted
hereunder without the prior written approval of the District shall be deemed to be a material
breach of this Contract.
12. PRIOR LUTION:The water service provided hereunder is expressly
subject to that certain Resolution passed by the Board of Directors of the District on September
25,7g7g,and all amendments thereto, as the same exists upon the date of this application and
allotment Contract.
13. NO FEE TITLE: It is understood and agreed that nothing herein shall give the
Applicant any equitable or legal fee title interest or ownership in or to any of the water or water
*ghts of the District, but that Applicant is entitled to the right to use the water right allotted
hereunder, subject to the limitations, obligations and conditions of this Contract.
14, COMPLIANCE WITH SECTION 404 O F THE CLEAN WATER ACT. A pplicant
shall comply with Section 4A4 of the Clean Water Act and consult with the Army Corps of
Engineers to complete any Section 404 compliance that may be required as a result of the
construction of any facilities necessary to use contract water.
15. GRAYW TREATMENT AND REU SE SYSTEMS: The Dstrict's engineering
assumptions used to determine the appropriate amount and timing of delivery of replacement
water to serve the property benefitted by this Contract do not consider graywater treatment
and reuse. Applicant shall notify the District if Applicant intends to or has constructed a
graywater treatment or reuse system on the property benefitted by this Contract. If Applicant
5
has installed or installs a graywater treatment or reuse system on the property benefitted by this
Contract, and if the rtse of srrch system causes operational challenges for the District, or
otherwise prevents the District from performing under this Contract, or its obligations under
any decreed plan for augmentation, the District may terminate this Contract. The Applicant
expressly holds harmless the District from any damages resulting from the Distric(s exercise of
its rights under this paragraph.
16, CONSERV CES: A pplicant shall implement and use commonly
accepted conservation practices with respcct to thc watcr and water rights allotted hereunder
and shall be bound by any conservation plan hereafter adopted by the l)istrict, as the same may
be amended from time to time.
77. WELL PERMIT: If Applicant intends to divert through a well, then Applicant
must provide to District a copy of Applicant's valid well permit before the District is obligated to
deliver any water hereunder, and it is the Applicant's continuous duty to maintain a valid well
permit. Applicant shall also comply with all restrictions and limitations set forth in the well
permit obtained from the Colorado Division of Water Resources. Applicant must comply with
the well-spacing requirements set forth in C.R.S. S 37-90-137, as amended, if applicable.
Compliance with said statutory well-spacing criteria shall be an express condition of the
extension of service hereunder, and the District shall in no way be liable for an Applicant's
failure to comply. Applicant agrees to mark the well in a conspicuous place with the permit
number.
18. MEASURING DEVICE OR METE-B: Applicant agrees to provide, at its own
expense, a totalizing flow meter with remote readout to continuously and accurately measure at
all times all water diverted pursuant to the terms of Applicant's water right and the terms of this
Contract. On or before November 15 of each year, Applicant will provide accurate readings
from such device or meter (recorded on a monthly basis for the period November 1 through
October 31 of each year) to District, the Division Engineer and Water Commissioner. Applicant
acknowledges that failure to comply with this paragraph could result in legal action to
terminate Applicant's diversion of water by the State of Colorado Division of Water Resources.
By signing this Contract, Applicant hereby specifically allows District, through its authorized
agent, to enter upon Applicant's property during ordinary business hours for the purposes of
determining Applicant's actual use of water.
19. CONTRAEI TERMTNATTON
A. Termination bv District:
1. The District may terminate this Contract for any violation or
breach of the terms of this Contract by Applicant, or Applicant's breach of
any other contract with the District.
2. The District may terminate this Contract if, in its discretion, any
judicial or administrative proceedings initiated by Applicant threaten the
District's authority to contract for delivery or use of the District's water
6
rights, or threaten the District's permits, water rights, or other interests of
the District.
B. Terminatiorlby Applicant:
1. Applicant may terminate this Contract in its entirety for any
reason by notifying the District in writing of the termination on or before
April 1. Notice by said date will prevent the Applicant's liability for the
next annual contract charge.
20. RECORDING OF MEMORANpUM: In lieu of recording this Water Allotment
Contract, a Memorandum of Water Allotment Contract will be recorded with the Pitkin County
Clerk and Recorder's Office. The costs of recording the Memorandum shall be paid by
Applicant.
APPLICANT:
KBBS HOLDINGS, LLC,
a Colorado limited liability company
Kara Byrne,Manager
Applicant's Address:
248 Skipper Drive
Carbondale, CO 81623
Telephone No.: (808) 283-3022
E-mail : ka&Qqs&lqhawcddtl&sea
srATE OF COLORADO )
couNrY o, fio "{.o {rl i "'
Subscribed and sworn to before me this Jg day of A t*A ,2025,by
Kara Byrne as Manager of KBBS Holdings, LLC, a Colorado limited liability comPany.
Witness my hand and official seal
My commission expires:
By,
BRITT JENNEL CHOATE
NOTARY PUBLIC
STATE OF COLORADO
NOTARY rD #19974007655
Commissron 1,2025
Notary Pub
Holdrnos LLc
JanuaN 21.2025
A4
4
15 0 033
Water lJser
Anelvsrs Daie
)rstncl.Aaea
ource senes
Maxmum Demand'
{GPM) (CFS)
BASALT TYATER CONSERVANCY DISTRICT
'A'ATER REOUIREMENTS
(acre bet)
10olo from Green Mtn.
A-f
trlX
rJr
r!
-l
Fork River
Type E Well
aq €@t> ?e
" 2*u a$-\e
4p{ t-t"*6
(14)
Source of
Auo/Fleolace
GNM
GNM
GNM
GNM
GNM
GNM
GNM
GNM
GNM
GNM
GNM
GNM
{13).
Delayed
o.o09
0.009
0.009
0.009
0.009
0.009
0.009
0.009
0.009
0.009
0,o09
0.009
0.r 13
\/)
Domestic
ln-house
(E)
Pond
Evap.
t9)
Lawn
{niqation
{10)
Crop
lniqation
{11)
Livestock
(2r
TOTAL
0,006
0.008
0.008
0.008
0.011
0.012
0.012
0.011
0.010
0.008
0.008
0.008
0.113
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
Assumptions
11 0
'/o CU for DomestiCCommercial '15
% Lawn lrng. Efficiency
Gonsumption of lrriE. (aflac)
80
1 456
% orop lmg. httrcrency
Consumption of lrrig. (aflac)
EO
0.000
E evalion (feet)8400
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0,000
0.000
0.000
0.000
0.000
0.c00
0.c00
0.300
0.300
0.102
0.304
0.104
0.102
0.t02
0..100
0.'100
0.,100
0.,113
0.000
0,000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.007
0.007
0.007
0.007
0.007
0.007
0.007
0.007
0.007
0.007
0.007
0 007
0 088
{5)
{7)
{s)
{1e)
(s-10)
(1)
Domestrc
ln*rouse
(z)
Pond
Evap.
(3)
Lawn
lrriqation
{4) (5)
Crop
lrrioa0on Lrvestock
(6)
TOTAL
0.050
0.045
0.050
0"048
0.053
0.053
0.054
0.052
0.051
0.050
0.048
0.050
0.505
NUMBER OF RESIDENCES 1.5
3.5
100
# personsiresidence
# odlongoersorldsv
Commercial/Other Demand (al 0.000 Gfice
Sq. Ft. of Lawrr lnigated
Laffr ApplEation Rale (aflac)
400
1.820
nigated
'n Rate {aflac}
0"c0
0.000
0.0u0
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
U.UUU
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0"000
0.000
0.000
0.000
otal Deman(
0.000
0.000
0.000
0.000
0.003
0.005
0.004
0.002
0.002
0.000
0.000
0.000
0.017
0.000
0.000
0.000
0.000
0"000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.050
1].045
0.050
0.048
t).050
0.048
0.050
0.050
0.048
0"050
0.048
0.050
0.588
(1)
(3t
({)
Month
January
February
March
Apnl
May
June
July
August
September
October
November
l)emmber
TOTALS ->
ORDER GRANTING APPLICATION FOR ALLOTMENT CONTRACT
KBBS HOLDINGS, LLC
CONTRACT NO. 856
Application having been made by or on behalf of KBBS HOLDINGS, LLC, a Colorado
limited tilUitity company, and hearing on said Application havingbeen duly held, it is hereby
ordered that said Application be granted and that the attached Water Allotment Contract for
0.033 cubic feet of water per second from the District's direct flow rights and 0.2 acre feet per
year of storage/augmentation water owned or controlled by the District is hereby approved and
executed by ind o., b"hulf of the Basalt Water Conservancy District, for the beneficial use of the
water allotted in the attached Contract, upon the terms, conditions and manner of payment as
therein specified and subject to the following specific conditions:
1. The Applicant has acknowledged that the land to be benefited by the attached
Contract is described is the SEll4 SEll4 of Section 12, Township 5 South, Range 89 West of the
6th Principal Meridian, County of Garfield, State of Colorado.
2. In the event of the division of the property served by this Contract into two or
more parcels owned by different persons, the Applicant shall establish a homeowners
association or other entity acceptable to the District for the ongoing payment of charges due
under the approved Contract following subdivision of the property. The Applicant shall give
notice to purihasers of all or any part of the subject property of the obligation of this Contract
and shali record such notice in the records of the Clerk and Recorder of Garfield County,
Colorado. Applicant and their successors and assigns shall comply with all rules and
regulationr ro* existing or hereafter adopted by the District, including enforcing payment-of
chirges due under the approved Contract by present and future owners of all or any part of the
real property served under this Contract.
3. Any allotment of less than 1.0 acre foot of storage water in Paragraph 1 of the
attached Contract shall be deemed 1.0 acre foot for purposes of establishing the annual water
service charge for such water allotment'
4. The Applicant shall provide the District proof that the proposed land use of
the land to be beneiited by the water allotted hereunder has been approved by the
applicable governmental authorities having iurisdiction over such land use, including
",nid"r,."
satisfactory to the District that each lot or parcel to be benefited hereunder is
legally subdivided.
S. Any well permits issued on the basis of this Contract shall be applied for and
issued in the name of the Applicant.
6. This Contract is conditioned upon and water may be delivered hereunder only in
conformity with a water rights plan of augmentation decreed by the Water Court of Water
Division No. 5, including Cise No. 02CW77. Any and all conditions imposed uPon the release
-1-
and diversion of the water allotted hereunder in the decree of said Water Court shall be
incorporated herein as a condition of approval of this Contract. Granting uf this Allotment
Contract does not constitute the District's representation that the Applicani will receive a well
permit or water rights decree for the land to be benefited hereby.
7- If Applicant intends to divert water through a well or wells, Applicant shall
provide the District a copy of Applicant's valid well permit for each such well befori the Dstrict
is obligated to deliver water for the benefit of Applicant hereunder. Applicant must comply
with the well-spacing requirements set forth in C.R.S. 537-gA-87, as amended, if appticable.
Compliance with said statutory well-spacing criteria shall be an express condition of the
extension of service hereunder, and the District shall in no way be liible for an Applicant's
failure to comply.
Approved this 11th day of March,2025.
BASALT WATER CONSERVANCY
By'
Gary D.Knaus, President
Attest:
By:
Secretary to the Meeting
"'