Water‑service and development policy was a focal point of the Pueblo West work session. Elyssa Velasquez, the district's Water Resource Manager, and Utilities Director Jim Blayson presented a developer request for a will‑serve letter for property on Orchard Springs Drive north of the golf course. The parcel exceeds five acres and the developer — identified in staff materials as 2 Fairway Estates — intends to subdivide it into about 24–26 single‑family or townhouse lots.

Velasquez said the developer asked the district for a will‑serve letter on the condition they will provide approved water rights to the district prior to starting the development. She noted the district's past practice has been to require developers to dedicate approved water rights before issuing a will‑serve letter; the current request would grant the letter earlier with the dedication required as a condition before construction begins.

Board members and staff probed the risks. A board member confirmed the developer already holds the property by warranty deed. Attorney/long‑time advisor Carl (first name used in the transcript) flagged two legal and technical issues: the draft showed a general warranty deed where the district customarily uses a special warranty deed, and the proposed water rights might still be in irrigation use and therefore could require a ditch‑wide analysis and a change of use in Division 2 water court (a legal process) before they could reliably serve municipal customers.

Carl also recommended a hydrologic/engineering analysis to verify how much water a proposed Bessemer‑Ditch share would yield; he said staff should consult engineering and water‑court counsel before granting exceptions. Staff said the developer does not currently have an identified water source and is investigating options.

The utility directors reported the district is reviewing its rules and regulations, including the policy threshold for developments over five acres, and planned a comprehensive rules revision for January 1. The developer and their representatives were expected to appear at the regular board meeting for further discussion; the topic will also be addressed in executive session as permitted by the agenda for the board's legal/contract deliberations.

Related items discussed in the same utility block included a planned water‑main extension on East Spalding (developer‑funded extension and assessments for vacant parcels) and a staff briefing on a full‑price purchase offer for district land at 868 East Industrial Avenue (5.62 acres) where the buyer intends to operate an excavation facility and estimated monthly water consumption of about 10,013 gallons. Staff said any large lot purchase or industrial use would either require the buyer to secure water or the board to grant a variance.

Why it matters: granting will‑serve letters before developers dedicate water rights is a departure from prior policy and could set a precedent affecting the district's ability to guarantee water service and protect existing customers. Staff advised caution and recommended engineering and legal checks before any variance is granted.