48-3780

48-3780. Qualification as a member service
area; termination

A. The service area of a municipal provider qualifies as a member service area only
if all of the following apply:

1. The service area is located in an active management area in which a part of the
central Arizona project aqueduct is located.

2. The municipal provider is not a member of a groundwater replenishment district
established pursuant to chapter 27 of this title.

3. The service area of the municipal provider is not a water district member
service area under chapter 28 of this title.

4. If the municipal provider or its predecessor previously terminated member
service area status pursuant to subsection B of this section, the service area or any
portion of the service area has not been a member service area for at least ten years.
The district may waive this requirement if the district and the director of water
resources determine that previously unforeseen circumstances necessitate requalification
of the service area.

5. If the municipal provider or its predecessor previously terminated member
service area status pursuant to subsection B of this section, the municipal provider
agrees to pay to the district all charges that would have otherwise been imposed by the
district had the member service area status remained in effect during the period since
termination became effective.

6. If all or a portion of the service area has previously qualified as a member
service area, the municipal provider agrees to pay an amount equal to the amount of the
replenishment taxes assessed against its predecessor that were not paid, plus interest
calculated in accordance with section 48-3782, subsection A.

7. The conditions stated in section 45-576.01, subsection B, paragraphs 2 and 3 are
satisfied with respect to the district at the time of the qualification.

8. The municipal provider publishes a resolution once each week for two consecutive
weeks in a newspaper of general circulation in the county or counties where the service
area is located that:

(a) Has attached to it a current map of the municipal provider's service area.

(b) Declares the intent of the municipal provider that the service area qualify as
a member service area under this chapter.

(c) Declares that, for the privilege of withdrawing and delivering excess
groundwater within its service area and to ensure the continued exercise of that
privilege, the municipal provider shall pay an annual replenishment tax to be determined
by the district.

(d) Contains a covenant, binding against the municipal provider, to pay to the
district an annual replenishment tax based on the service area replenishment obligation
in an amount determined by the district as necessary to allow the district to perform the
groundwater replenishment obligations.

(e) Authorizes the municipal provider to enter into a written commitment with the
district in the form and substance satisfactory to the district regarding payment of the
annual replenishment tax.

(f) Declares that the resolution applies to the service area of the municipal
provider as it currently exists and to all additions to and extensions of the service
area.

(g) Declares that the resolution is irrevocable for as long as the district is
obligated to perform the groundwater replenishment obligations.

B. A service area previously accepted as a member service area pursuant to
subsection A of this section terminates its member service area status only if all of the
following apply:

1. The municipal provider for the member service area has submitted an application
to the district requesting termination of member service area status.

2. The municipal provider for the member service area has submitted an application
to the director of water resources requesting modification of the municipal provider's
assured water supply designation under section 45-576 that eliminates the municipal
provider's reliance on member service area status.

3. The applications provide evidence satisfactory to the director of water
resources that the municipal provider has obtained a substitute supply of water, other
than groundwater, that is determined by the director of water resources to be consistent
with assured water supply requirements pursuant to section 45-576 and that is sufficient
to eliminate the municipal provider's reliance on member service area status.

4. The director of water resources has approved the municipal provider's
application to modify its assured water supply designation based on the addition of the
substitute water supply.

5. The municipal provider publishes a resolution once each week for two consecutive
weeks in a newspaper of general circulation in the county or counties where the service
area is located that:

(a) Has attached to it a current map of the municipal provider's service area.

(b) Declares the intent of the municipal provider to terminate the service area's
member service area status.

(c) Declares that the district is no longer obligated to perform the groundwater
replenishment obligations on behalf of the service area.

(d) Revokes the resolution for the member service area provided for in subsection
A, paragraph 7 of this section.

6. All amounts owed by the water provider on behalf of the member service area to
the district have been paid.

7. The municipal provider has paid or made arrangements suitable to the district
for repayment of any capital costs incurred by the district specifically on behalf of the
member service area.