A. 
Any person who applies for municipal water services shall be required to transfer consumptive water rights to the town in quantities sufficient to meet the water demand of the project, or new service connection, including any line loss. The applicant may meet the water rights transfer requirements of this chapter if water is available from the town.
B. 
No new municipal water service connection or increase in water use shall be approved or made by the town until an application for service has been signed and completed by the property owner and there has been a completed transfer to the town of water rights or the water rights transfer requirements of this chapter have been met.
1. 
A complete transfer includes conveyance of the water right to the town, a deed showing ownership of the water right(s), an approved application to the office of the state engineer (OSE) for transfer of ownership, and a full or partial change in the place of use and purpose of use and point of diversion which is approved by the OSE.
2. 
The applicant shall bear the costs associated with the transfer of ownership.
3. 
The applicant shall pay a one-time five hundred dollar ($500.00) fee for the town to perform its due diligence as to the validity of the water right(s) that the applicant proposes to transfer.
4. 
The town has the exclusive discretion to approve or disapprove any proposed water rights transfer to the town.
C. 
The requirements of this section for transfers of water rights shall be restricted to new municipal water service connections and to water service which has been terminated for more than two (2) years. Such requirements do not apply to reconnection or renewal of service which has been terminated for less than two (2) years, or to water rights which have been previously purchased by or transferred to the town water system and approved by the office of the state engineer. If the active service increases the use of water, the increase in water usage between the previous use and the increased use must be transferred. Increased use is determined by first computing the average water use of the current user for the past two (2) years based on water bills with the town. That average is then compared to the calculated new use based on the water allotment schedule. The difference between these two (2) values shall be the additional consumptive water rights, if any, to be transferred to the town or water purchased from the town.
D. 
The amount of water rights which shall be required to be transferred under this section shall be calculated on an acre-foot consumptive use basis, plus an additional ten percent (10%) of the consumptive use amount to compensate the town for line losses associated with each connection. Completion of such transfers shall be contingent on the approval for such transfer to the town under the rules, regulations and procedures of, and in compliance with, the state water laws and town ordinance. All costs incurred in connection with any such transfer shall be borne by the applicant.
(Ordinance 03-04, sec. 1, adopted 2003)
All new subdivisions must include in their disclosure statements to prospective buyers the amount of water rights to which each lot is limited according to the amount of water purchased from the town or the amount of water rights transferred to the town by the subdivider.
(Ordinance 03-04, sec. 1, adopted 2003)
A. 
In order to evaluate the impact on the town’s water supply, all property owner initiated annexations will be considered upon submittal of a water plan submitted by the property owner(s) requesting annexation. Annexations to the town may be approved only after the town has evaluated the impact of the proposed annexation on the pumping and distribution system and on the availability of water rights.
B. 
The town may determine that a property or area to be annexed will not have an impact to the town’s water supply if such property or area has its own public or private water supply, or such property or area is beyond the service area of the municipal water supply and can be served through the future installation of a public or private water supply.
(Ordinance 03-04, sec. 1, adopted 2003)
A. 
The town shall not issue a building permit to any applicant for a building permit until all water and water rights requirements of this chapter are satisfied.
B. 
This restriction shall not apply to building permits issued by the town which do not require a water service connection, or an increase in water use for existing water service connections.
(Ordinance 03-04, sec. 1, adopted 2003)
The transfer of any water rights to the town, wherever applicable, in no way abolishes any requirement of connection fees, impact fees, or any other requirements of the town regarding the water system.
(Ordinance 03-04, sec. 1, adopted 2003)
All owners of water rights within the town and its service area shall be encouraged to continue to use any and all irrigation rights beneficially. In those cases where such rights are not being used or are unlikely to be used in the future such owners shall be encouraged to place them in trust with the town.
(Ordinance 03-04, sec. 1, adopted 2003)
A. 
Water consumption.
It is unlawful for any person to divert and/or consume more water than allowed by the person’s water service agreement with the town without first purchasing sufficient water from the town and/or transferring to the town additional water rights in an amount sufficient to meet the person’s water demands.
(Ordinance 03-04, sec. 1, adopted 2003)
A. 
A person may request approval from the town council to transfer water rights to the town to be placed in trust. The transfer, if authorized by the council, is subject to review and approval by the office of the state engineer. Water rights in trust remain under the ownership of the water rights owner until they are sold or put into use by the owner through an approved water service connection with the town. In the interim, water rights in trust with the town may be used by the town to allow for the continued beneficial use of said rights. The party placing water rights in trust to the town shall be the beneficiary of the trust.
B. 
The costs incurred by the water rights owner(s) in the transfer of water rights to the town will be the sole responsibility of the water rights owner. The water rights owner is required to provide to the town copies of all documents and correspondence relating to the transfer of water rights, prior to submittal to the office of the state engineer.
C. 
In the event water rights are placed in trust with the town, the beneficiary of the trust must obtain prior approval from the town before subsequent use or sale of said water rights. Approval by the town is required to ensure that the town has the capability and capacity to provide such water to the water user at the time of use. In the event the town does not have the capability or capacity to produce the water associated with the subject water rights, the beneficiary of the trust or the new owner of the water rights shall reimburse the town for the costs and fees associated with the drilling, completion and connection of any necessary wells to the town water system.
D. 
In the event that the town is required to incur additional costs in developing a water source and/or delivery system in order for the water user to sell and/or use the water rights in trust, that additional cost shall be paid by the water user.
(Ordinance 03-04, sec. 1, adopted 2003)
As additional water rights become available to the town, the following policies shall apply:
A. 
Sixty percent (60%) of town water rights will be allocated to residential and public users per year, with forty percent (40%) allocated to commercial and industrial development within the town’s corporate limits.
B. 
Commercial developers can purchase up to ten (10) consumptive acre-feet of water plus line loss per development, subject to the provisions of subsection A of this section. Any additional water rights needed by the developer must be transferred to the town as required by section 13.04.040 of this chapter or may be acquired from the town if such additional quantity is available, and with the approval of the town council.
C. 
The town will reserve twenty (20) consumptive acre-feet of water rights per year for projects which are clearly for the health, safety, and welfare of the residents of the town.
(Ordinance 03-04, sec. 1, adopted 2003)
A. 
In the event that the town should have additional water rights available from the San Juan Chama water project, from the town’s well field, or other sources, the town may offer the water for sale to residents of the town for residential and commercial use subject to the provisions of subsection 13.04.110.A of this article.
B. 
Water offered for sale by the town may be used to meet the water rights transfer requirements set forth in section 13.04.040 of this article. A water service connection will be provided upon payment per consumptive acre-foot of water rights as determined by resolution of the town council. Water allotments that result in portions of an acre-foot are prorated against the cost per acre-foot. The town retains ownership of the water rights and will provide to the water user a water service agreement in accordance with the provisions of this chapter.
C. 
Nothing in this section shall require the town to sell any of the water rights or water it owns, or to accept any water rights transferred if they are less than the water required for the project and/or less than the amount stated in the application.
D. 
Charges and fees collected pursuant to this section shall be deposited by the town in a separate fund for the payment of fees and investment associated with the San Juan Chama water contract, and for the purchase of additional water rights for the town.
E. 
The payment of the charges and fees stated herein shall be paid prior to receiving a water service connection by the town, unless other terms acceptable to the town have been negotiated in writing.
(Ordinance 03-04, sec. 1, adopted 2003)
A. 
When there is a change to an existing water or sewer service, the property owner is responsible for providing the town with a completed application for water and sewer service. The town, at its sole discretion, shall make the final determination as to whether or not the change in use constitutes a new connection according to the following criteria:
1. 
When a new residential or commercial structure is to be connected to an existing water or sewer line, the town will review the licensed plumber’s or licensed engineer’s determination as to whether or not the existing line is capable of servicing the increased flow. If the increased flow does not warrant a separate meter/line or change to the existing service, this does not constitute a new service connection;
2. 
When the increased flow necessitates a separate meter or line or change to the existing active service, this constitutes a new service connection; or
3. 
When the change provides service to an additional owner, this constitutes a new service connection.
B. 
Whenever an existing meter must be replaced as a result of damage caused by the property owner, the owner shall be responsible for all costs associated with such replacement. Such replacement shall be performed by a licensed plumber and inspected by the town public works department.
C. 
If the increased flow necessitates a change in service, the applicant is responsible for transferring to the town water rights in sufficient quantities to meet the owner’s increased water demand or purchasing from the town the necessary additional water in accordance with sections 13.04.040 and 13.04.120 of this article.
(Ordinance 03-04, sec. 1, adopted 2003)
All persons requesting a new municipal water service connection, change in use, or increase in use shall complete an application for service prior to receiving building permit approval. The code administrator shall calculate the quantity of water and water rights required according to the annual water allotment schedule, prior to issuing a building permit or business license. If additional water and water rights are available from the town, the water required will be allocated to the project. After the building permit is approved, the applicant shall pay all applicable water and sewer fees prior to receiving a connection. If additional water is not available for purchase from the town, the building permit application will not be reviewed until all required water rights are transferred to the town.
(Ordinance 03-04, sec. 1, adopted 2003)
A. 
The governing body has determined that it is in the best interests of the health, safety and welfare of the community that all property owners whose property line is within three hundred feet (300') of a serviceable water line connect to the town’s water supply system and/or transfer or acquire the water and/or water rights based on the annual water allotment schedule (section 13.04.110 of this article), and pay all applicable monthly fees.
B. 
No new municipal water service connection shall be approved by the town until there has been a completed transfer to or an acquisition from the town of water rights as set forth in the annual water allotment schedule as determined by resolution of the town council.
C. 
Cross connections, in which it is possible for nonpotable, used, unclean or polluted water or any other substances to enter into the town water supply, are prohibited.
D. 
All costs incurred by the property owner in extending or constructing a water service line between the serviceable water line and the owner’s property shall be paid by the property owner.
(Ordinance 03-04, sec. 1, adopted 2003)