RESOLUTION NO. 46-94

AUTHORIZATION TO LEASE 3,000 ACRE FEET OF IRRIGATION WATER

TO KANNAH CREEK-AREA RANCHERS FOR 1994 IRRIGATION SEASON

AT A RATE OF $6.25 PER ACRE FOOT.

 WHEREAS, the City of Grand Junction has absolute and conditional water rights on Kannah Creek and the North Fork of Kannah Creek; and

 WHEREAS, the City leases water to ranchers in the Kannah Creek area on an "as-available" basis; and

 WHEREAS, the City has available an estimated 3,000 acre feet of water for the 1994 irrigation season; and

 WHEREAS, the City intends to lease this water at or near market rates for the 1994 irrigation season.

 NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GRAND JUNCTION:

 That the City will provide 1,000 acre feet of irrigation water to lessees of City property at no charge for irrigation purposes, and 2,000 acre feet of irrigation water to other ranchers in the Kannah Creek area at a rate of $6.25 per acre foot; and

 That this water is made available on a year to year basis and may be limited in the future by water supply conditions and future City usage; and

 That the City water is "supplemental water" to be used for existing uses and not for expanding agricultural uses; and

 That this supplemental water will eventually be transferred to the City for municipal uses and that lessees of this water agree not to object to any such transfers of water.

 PASSED and ADOPTED this 15th day of June, 1994.

Attest:

             /s/ R. T. Mantlo

              President of the City Council

/s/ Stephanie Nye

   City Clerk