Water Dedication Requirements

Overview of Town of Frederick Water Dedication Requirements – The Town's water dedication requirements are defined in Municipal Code Chapter 13 Article II Division 2. If the water dedication requirements were not satisfied at the time of annexation, no building permit shall be issued by the Town for the phase or filing in which the building permit is requested. This shall remain true until the water rights or shares dedication has been accepted by the Town in order to satisfy the water dedication requirement.

There are two steps for the Town’s Water Dedication Requirements, determining the amount of water required for dedication and securing water for a project:

  1. How much water does a project need? 
    • This is determined by a Water Demand Analysis performed by Town of Frederick Engineering Staff. For more information about this process, scroll down to read the Water Demand Analysis Guide.
    • A few notes about Water Demand Analysis:
      1. If the actual water use of the development is greater than the amount generated per the Water Demand Analysis, the owner is required to reduce their water use or provide additional water to the Town in accordance with MC Sec. 13-2-235.
      2. Every development application submitted after August 1, 2023 requires a Water Demand Analysis. Projects submitted prior to August 1, 2023 can apply for Water Demand Analysis if they choose.
  2. How to secure water for a project?
    • Dedicate Colorado-Big Thompson (CBT) units to Town. Other water rights may be considered for acceptance at the discretion of the Town Board of Trustees. (For more information scroll down to read the Water Dedication Guide.) AND/OR
    • Qualified Projects can purchase water credits from the Town's water portfolio for a project through the Town’s Water Reservation & Allocation Policy. This Town approved policy identifies Qualified Projects that may be eligible for the purchase of water credits from the Town’s water portfolio. Preliminary eligibility will be determined by the Town’s Water Reservation & Allocation Committee through use of a Town approved set of criteria. Projects found to be eligible shall accompany a staff drafted Water Reservation & Allocation Agreement to be brought before the Town of Frederick Board of Trustees for final approval. For more information about this policy scroll down to the Water Reservation & Allocation Policy Guide.

Water Demand Analysis Guide

What is a Water Demand Analysis? The Water Demand Analysis (WDA) for a project determines the amount of water required for a new development to function. The WDA considers indoor and outdoor water use and calculates an amount of CBT units that will be required to provide enough water for the identified uses. This is beneficial for a development as the developer may choose to install low water demand landscaping and save on the amount of water that is required to be dedicated to the Town. Please review the Water Demand Completeness Checklist prior to submitting your application. Landscape Plans, Irrigation Plans, and Hydrozone Plans must follow the requirements outlined in the Final Landscape Plan User Guides.

How do I estimate water demand for my project? The Town of Frederick Engineering Department will perform the official WDA which determines a project’s water dedication requirement using information about the project provided by the applicant in a submittal. Developers can do a Water Demand Estimate using the same assumptions Town staff will use to perform the official WDA using the following documents: Water Demand Estimate Spreadsheet or Water Demand Estimate Tables. The water requirement shall be rounded up to the next whole number as fractional CBT units cannot be dedicated to the Town. Please do not include Water Demand Estimates in submittals. If a Water Demand Estimate is included in a submittal, the applicant will be informed that it needs to be removed.

Disclaimer: All official water demand analyses will be performed by the Town of Frederick Engineering Department and will be based on information provided in approved final plan sets. The information provided here is for approximation purposes only and calculations performed by developers or property owners will not be used to determine the amount of water required for dedication. Town of Frederick Engineering Department will not provide the applicant with a preliminary water demand analysis, but Town will only provide the applicant with the official water demand analysis.

Water Dedication Guide

The Town will accept CBT units to meet the dedication requirement. When a dedicator has secured a contract for a CBT purchase the dedicator must contact Northern Water about the transfer request. Northern Water will then send paperwork for the Town will complete which acknowledges the transfer of CBT units from the seller to the Town to meet the water dedication requirement. The Town may take up to two weeks to execute the submitted paperwork.

A CBT dedication typically requires a transfer of CBT water to the Town, approved by the Northern Water Board. The Northern Water Board meets monthly and that schedule can be found here https://www.northernwater.org/your-water/allottees/contracts.

Other water rights that may be considered at the discretion of the Town Board of Trustees include Windy Gap, Lower Boulder, and other changed irrigation water rights.

Water Reservation & Allocation Policy Guide

The Town of Frederick Water Reservation & Allocation Policy (WRAP) identifies projects that are qualified for purchasing water credits from the Town’s Water Portfolio. These water credits can be used to satisfy the water dedication requirements for a development project. The WRAP is subject to change annually.

  • If applicants believe their project fits in one of the Qualified Project categories listed below, they may fill out the Water Reservation & Allocation Policy Application.
  • Applicants that are determined to be eligible for purchasing water credits through the policy will work with Town staff to draft a Water Reservation & Allocation Agreement that will go to the Town of Frederick Board of Trustees for final approval or denial.
  • The amount of water identified in the agreement will not necessarily fulfill the entirety of a project's water dedication requirement. This amount will ultimately be decided by the Board of Trustees.

Water Reservation and Allocation is a two-step process:

  1. A Water Reservation is made upon approval of the Water Reservation & Allocation Agreement and payment of any applicable Water Reservation Fees.
    • Once the Water Reservation is made and applicable Water Reservation Fees are paid, the applicant will have an amount of time (Reservation Term) specified in the agreement to move on to step 2.
    • Expiration of Water Reservations. Water Reservations, or portions thereof, that are not converted to Water Allocations during the Reservation Term set out in the Water Reservation and Allocation Agreement will expire, and shall thereafter be returned to the Water Bank. 
  2. A Water Reservation becomes a Water Allocation upon full payment of water credit fees.
    • Once a Water Allocation is made, the applicant will have an amount of time, specified in the agreement, to install tap(s) and meter(s).
    • Expiration of Water Allocations. Water Allocations, or portions thereof, that are not timely applied by way of Initiation of Water Use as provided in the Water Reservation and Allocation Agreement (or if silent, the Town Code) will expire, and shall thereafter be returned to the Water Bank. 

The Town may consider the following categories of projects to be Qualified Projects:

  1. Key economic development projects:
    • Research and industrial facilities that are directly involved in:
      • Biosciences / biotechnology product manufacturing
      • Control, electromechanical, measuring, and navigational instruments
      • Clean technology
      • Medical equipment and supplies manufacturing
      • Recreational vehicle and equipment manufacturing
    • Research, industrial, wholesale, or warehousing and distribution facilities that principally provide components, supplies, or professional or technical support for the industries listed above
    • Hospitals that include inpatient facilities
    • Child care centers
    •  Projects of Economic Significance as defined by the Board of Trustees, including, but not limited to:
      • Strategic types of retail, mixed-use, entertainment, or corporate headquarters development
      • Projects that the Board determines implement adopted special area plans
  2. Critical Land Use Needs: 
    • Attainable housing, which may be subject to a deed restriction to ensure that resales or rentals continue to qualify as attainable, for example, for not less than 50 years. 
    • Housing for older persons, as defined in the Federal Fair Housing Act. 
  3. Infill:
    • New construction of a single-family detached dwelling unit on an infill residential lot, provided that the Water Reservation (or Water Allocation, if a Water Reservation is not made) does not exceed 0.6 acre-feet per year.
    • Establishment of a commercial or industrial use on an infill nonresidential lot, provided that the Water Reservation (or Water Allocation, if a Water Reservation is not made) does not exceed 1.8 acre-feet per year.