2023 Arizona Revised Statutes › Title 9 - Cities and Towns › § 9-500.40 - Water service outside city or town; requirements; standpipe district

9-500.40.
Water service outside city or town;  requirements;  standpipe district
(Rpld. 1/1/26)
A. A city or town that provides water service shall provide water service through an intergovernmental agreement with a standpipe district for a period of not more than three years by use of a standpipe for water hauling to residences outside the city's or town's water service area that do not have access to sufficient water if all of the following apply:
1. The number of impacted residences to be serviced is not more than seven hundred fifty and the residences are in an area that is an unincorporated community within the standpipe district and adjacent to the city or town.
2. The city or town previously provided water service to the residences that do not have access to sufficient water.
3. There is no other adequate source of water for those persons within ten miles of their residences.
4. The city or town is reimbursed for the full reasonable costs of providing and delivering the water.
5. The impacted area is in a county with a population of more than seven hundred fifty thousand persons.
6. Providing the water at the standpipe does not,  without the city's or town's consent,  reduce the amount of water available to residences and businesses within the city's or town's water service area or to residences and businesses outside of the city's or town's water service area with whom the city or town has directly contracted to provide water through means other than hauling water.
B. The standpipe district shall enter into an intergovernmental agreement with the city or town,  and the intergovernmental agreement shall provide that the standpipe district agrees to be responsible for all of the following:
1. Delivering water pursuant to this section to water haulers serving members of the standpipe district. Self hauling of water is allowed.
2. Paying the city or town for the full costs of providing the water to the residences eligible to receive water services pursuant to this section. The standpipe district may do so either directly or through one or more third parties.
3. Billing the residences for the cost of the water being received. The standpipe district may do so either directly or through one or more third parties.
4. Providing an annual amount of water to the residences that may exceed the annual amount of water the residences in the area prescribed by this section previously received if the additional amounts do not violate subsection A,  paragraph 6 of this section. The standpipe district may provide the water through one or more third parties.
5. If the annual amount of water provided pursuant to the intergovernmental agreement is exceeded,  suspended or reduced,  implementing and enforcing any necessary water conservation measures.
6. Working to identify a long-term solution for the water needs of the area prescribed by this section.
C. The intergovernmental agreement executed pursuant to this section shall indemnify the city or town with respect to any actions taken or occurrences after water is provided at the standpipe.
D. The provision of water pursuant to this section and the intergovernmental agreement authorized by this section are contingent on a standpipe district obtaining a source of water from a third party absent a city's or town's consent to use the city's or town's own source of water.
E. Not more than seven hundred fifty residences shall be allowed to receive water from any standpipe district.
F. A city or town may reduce or suspend the amount of water provided pursuant to this section if water becomes unavailable from a third party.
G. A city or town is not liable to any person or entity for providing or failing to provide water pursuant to this section.
H. This section does not preclude execution or implementation of a voluntary agreement before the effective date of this section. This section does not apply if such a voluntary agreement results in adequate water being supplied to the residences that would otherwise be served.
I. Property owners in the impacted area may join,  or not join,  the standpipe district. The standpipe district shall only provide water to the members of the standpipe district.
J. The standpipe district shall be governed by a five-person board of directors who shall be members of the standpipe district on or before taking office. Appointments shall be made within fourteen days of the occurrence of the conditions in subsection a of this section,  or if such conditions already exist as of the effective date of this section,  within fourteen days after the effective date of this section. The standpipe district board shall consist of the following members:
1. One member who is appointed by the speaker of the house of representatives.
2. One member who is appointed by the president of the senate.
3. One member who is appointed by the governor and who serves at the pleasure of the governor.
4. One member who is appointed by the commissioner of the state real estate department and who serves at the pleasure of the commissioner of the state real estate department.
5. One member who is appointed by the director of the department of water resources and who serves at the pleasure of the director of the department of water resources.
K. Each standpipe district shall have no powers other than those expressly contemplated by this section. The standpipe district may levy a reasonable and minimal surcharge on the price of water to reimburse the standpipe district for costs of billing and administration and other reasonable expenses. The surcharge shall not exceed ten percent of a customer's bill without the unanimous approval of the board of the standpipe district.
L. A standpipe district is not subject to eminent domain pursuant to section 9-516.
M. In the event that the conditions set forth in subsection A of this section apply to an area,  a standpipe district in the impacted area begins to exist when a majority of members of its board are appointed. A standpipe district terminates on the repeal of this section.