R12-15-720. Financial Capability

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. The applicant will submit its final plat to a qualified platting authority; 2. The applicant has constructed adequate delivery, storage, and treatment works, and water service is available to each lot; or 3. The applicant has posted a performance bond with the platting authority for the entire cost of adequate delivery, storage, and treatment works. 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. 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. The applicant has constructed adequate delivery, storage, and treatment works; 2. The applicant has entered into written agreements requiring a potential developer to construct adequate delivery, storage, and treatment works; 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. 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. 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.