1. A. The Director shall determine that an applicant for a certificate or a water report has the financial capability to construct adequate delivery, storage, and treatment works if the applicant demonstrates one or more of the following:

   1. 1. The applicant will submit its final plat to a qualified platting authority;
   2. 2. The applicant has constructed adequate delivery, storage, and treatment works, and water service is available to each lot; or
   3. 3. The applicant has posted a performance bond with the platting authority for the entire cost of adequate delivery, storage, and treatment works.
2. B. Upon receiving evidence that a platting authority has established standards for proof of financial capability to construct adequate delivery, storage, and treatment works, pursuant to A.R.S. § 9-463.01(C)(8) or A.R.S. § 11-806.01(G), the Director shall classify the platting authority as a qualified platting authority. The Director shall maintain a list of qualified platting authorities.

3. C. The Director shall determine that an applicant for a designation has the financial capability to construct adequate delivery, storage, and treatment works if the applicant demonstrates one or more of the following for each of those facilities:

   1. 1. The applicant has constructed adequate delivery, storage, and treatment works;
   2. 2. The applicant has entered into written agreements requiring a potential developer to construct adequate delivery, storage, and treatment works;
   3. 3. The applicant has submitted evidence demonstrating that financing mechanisms are in place to construct adequate delivery, storage, and treatment works in a timely manner;
   4. 4. If the applicant is a city or town, the applicant has adopted a five year capital improvement plan that provides for the construction, or the commencement of construction, of adequate delivery, storage, and treatment works in a timely manner, and has submitted a certification by the applicant’s chief financial officer that finances are available to implement that portion of the five-year plan; or
   5. 5. If the applicant is a private water company, the applicant has received approval from the Arizona Corporation Commission for financing the construction of adequate delivery, storage, and treatment works.

Historical Note

Adopted effective February 7, 1995 (Supp. 95-1). Section repealed; new Section made by final rulemaking at 12 A.A.R. 3475, effective September 12, 2006 (Supp. 06-3). Amended by final rulemaking at 30 A.A.R. 3751 (December 13, 2024), with an immediate effective date of November 25, 2024 (Supp. 24-4).