2012 Arizona Revised Statutes
Title 9 Cities and Towns
9-514.01 Acquisition of county wastewater utility

9-514.01. Acquisition of county wastewater utility

A. A city or town authorized to operate a wastewater utility by the affirmative vote of a majority of the qualified electors as provided in section 9-514 may acquire all or any portion of a sewage system located within or serving the city or town and owned or operated by a county pursuant to section 11-264 in the manner provided by this section.

B. Title to any or all sewer pipes, pumps and other sewage collection infrastructure located within the city or town limits shall be transferred to the city or town at the request of the city or town.

C. Title to any sewage treatment facility located within or outside the city or town shall be transferred to the city or town at its request if seventy-five per cent or more of the sewage treated at the facility as of the date of transfer originates from within the city or town.

D. Title to treatment capacity of any county sewage treatment facility located within or outside the city or town that is committed to treatment of sewage originating from within the city or town shall be transferred to the city or town at its request.

E. A city or town transfer request pursuant to subsection B, C or D of this section shall be in the form of a written notice delivered to the clerk of the board of supervisors of the county and shall state the date of transfer. The date of transfer shall be not less than thirty and not more than one hundred eighty days after the date the notice is delivered to the clerk of the board.

F. A city or town acquiring any portion of the sewage system or sewage treatment capacity transferred pursuant to subsection B, C or D of this section shall pay or assume all outstanding indebtedness attributable to the transferred infrastructure or treatment capacity as of the date of transfer. The county shall not incur new debt attributable to the transferred infrastructure or treatment capacity after the date the city or town's notice of transfer is delivered to the clerk of the board.

G. Except as otherwise allocated in an intergovernmental agreement between the city or town and the county, a city or town is responsible for all costs of operation and maintenance of the sewage system infrastructure that is acquired by the city or town pursuant to this section from and after the date of transfer.

H. Except as otherwise provided in an intergovernmental agreement between the city or town and the county, the county shall not invoice or bill sewage system fees to customers served by the sewage system infrastructure that is transferred to the city or town pursuant to this section after the date of the transfer. The city or town is responsible for all invoicing and billing of wastewater utility customers served by the sewage system infrastructure that is acquired by the city or town pursuant to this section after the date of the transfer.

I. The county may continue to transmit sewage originating from county sewage system customers through any sewer pipes, pumps and other sewage collection infrastructure transferred to a city or town pursuant to this section. The county shall pay the city or town's actual operation and maintenance costs attributable to conveyance of sewage originating from county sewage system customers.

J. A city or town may transmit sewage originating from wastewater utility customers of the city or town through any sewer pipes, pumps and other sewage collection infrastructure owned or operated by the county. The city or town shall pay the county's actual operation and maintenance costs attributable to conveyance of the sewage originating from wastewater utility customers of the city or town.

K. At treatment facilities not transferred to the city or town pursuant to this section, the county shall continue to treat sewage from customers served by the sewage system infrastructure acquired by the city or town pursuant to subsection B of this section. The city or town shall pay the county's actual operation and maintenance costs attributable to treatment of the sewage originating from wastewater utility customers of the city or town.

L. The city or town shall continue to treat sewage originating from county sewage system customers whose sewage is treated at a sewage treatment facility transferred to the city or town pursuant to subsection C of this section. The county shall pay the city or town's actual operation and maintenance costs attributable to treatment of the sewage originating from county sewage system customers.

M. Subject to availability of treatment capacity, the city or town may connect new city or town wastewater utility customers whose sewage will be treated at a sewage treatment facility owned or operated by the county. The city or town shall pay the county's actual capital costs associated with the creation of the sewage treatment capacity needed to serve the new connection. The city or town thereafter shall own the capacity needed to serve the new connection and shall pay the county's actual operation and maintenance costs attributable to treatment of the sewage originating from the new wastewater utility customer.

N. Subject to availability of treatment capacity, the county may connect new county sewage system customers whose sewage will be treated at a sewage treatment facility owned or operated by the city or town. The county shall pay the city or town's actual capital costs associated with the creation of the sewage treatment capacity needed to serve the new connection. The county thereafter shall own the capacity needed to serve the new connection and shall pay the city or town's actual operation and maintenance costs attributable to treatment of the sewage originating from the new sewage system customer.

O. Proof of outstanding indebtedness, actual operation and maintenance costs and actual capital costs that may be charged pursuant to this section shall be supported by auditable documentation presented by the entity entitled to payment. If not satisfied with the proof, the entity required to make payment under this section may request the auditor general to perform an independent audit of the financial records of the entity entitled to payment. The entities shall be bound by the findings in the auditor general's independent audit, which shall establish the correct and final payment amount and which shall be treated in all respects as a final decision in binding arbitration. The auditor general shall charge the costs of the independent audit to one or both of the entities, taking into consideration the outcome of the audit compared to the amount prescribed in the documentation presented by the entity entitled to payment. The entity being audited shall provide the auditor general unlimited access to the entity's financial records relating to the wastewater utility operation. The auditor general shall calculate the cost to ensure that this state does not incur any cost of the audit.

P. For the purposes of this section, actual costs shall not include costs attributable to administrative overhead of the entity involved in the transfer.

Q. This section does not restrict the authority of a city or town to provide wastewater utility service to customers outside of the city or town limits.

R. A city or town may bring a special action in the nature of mandamus against a county that fails to make a transfer requested under subsection B, C or D of this section. If the city or town prevails in the action the court shall award attorney fees to the city or town.