Ord G- (LF #24-0459) 3_6_24 Large Water Users Ch 37 Art III Attachment A.pdf

ATTACHMENT A 
 
THIS IS A DRAFT COPY ONLY AND IS NOT ANY OFFICIAL COPY OF THE FINAL, 
ADOPTED ORDINANCE. 
 
 
 
ORDINANCE NO. G-  
 
AN ORDINANCE AMENDING PHOENIX CITY CODE 
CHAPTER 37, ARTICLE III, PERTAINING TO SERVICE 
CONNECTIONS, TO ADD A DIVISION 2, PERTAINING TO 
LARGE WATER USERS.  
 
 
 
 
 
______________ 
 
 
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PHOENIX as 
follows: 
 
 SECTION 1. Phoenix City Code, Chapter 37, Article III, “Service Connections” 
is hereby amended to read: 
DIVISION 1. GENERALLY 
Sec. 37-39. 
Connection to water mains required. 
A.  To protect and support public health and welfare, where property abuts a 
street in which a water main is laid, the property must be connected with the 
City public water system. These service connections must extend at right 
angles from the main to the curblines and must be installed pursuant to City 
design standards. 
     
   * * *                                                * * *                                                   * * * 
 
 
SECTION 2. Phoenix City Code, Chapter 37, Article III, “Service Connections” 
is hereby amended to add a Division 2, “Large Water Users,” to read: 
DIVISION 2. LARGE WATER USERS 
 
SEC. 37-52.01.  PURPOSE AND INTENT.

A. THE PHOENIX CITY COUNCIL HAS DETERMINED THAT IT IS IN THE 
BEST INTERESTS OF THE CITY TO ESTABLISH CERTAIN TERMS, 
CONDITIONS, LIMITATIONS AND OTHER REQUIREMENTS REGARDING 
THE CITY PUBLIC WATER SYSTEM TO ENSURE WATER SECURITY FOR 
ALL CUSTOMERS. 
B. THE PHOENIX CITY COUNCIL ALSO DESIRES TO PROMOTE WATER 
CONSERVATION AND IMPLEMENT CERTAIN MEASURES THAT WILL 
PROVIDE FOR A SUSTAINABLE WATER SUPPLY FOR EXISTING AND 
FUTURE CUSTOMERS OF THE CITY PUBLIC WATER SYSTEM.  
SEC. 37-52.02.  APPLICABILITY. 
A. THIS DIVISION APPLIES TO A PERSON WHO APPLIES TO BECOME A 
LARGE WATER USER AFTER THE EFFECTIVE DATE OF THIS DIVISION. 
B. THIS DIVISION ALSO APPLIES TO AN EXISTING CUSTOMER WHO 
REQUESTS WATER-METER UPSIZING AT THE CUSTOMER’S FACILITY 
THAT WILL ALLOW FOR WATER USE THAT EQUALS OR EXCEEDS 
250,000 GALLONS PER DAY AFTER THE EFFECTIVE DATE OF THIS 
DIVISION AND AN EXISTING CUSTOMER WHOSE WATER USE EQUALS 
OR EXCEEDS 250,000 GALLONS PER DAY ON THE EFFECTIVE DATE 
OF THIS DIVISION AND, WHO, AFTER THE EFFECTIVE DATE, 
REQUESTS WATER-METER UPSIZING AT THE CUSTOMER’S FACILITY. 
C. THIS DIVISION DOES NOT APPLY TO AN EXISTING CUSTOMER 
WHOSE WATER USE AT THE CUSTOMER’S FACILITY EQUALS OR 
EXCEEDS 250,000 GALLONS PER DAY ON THE EFFECTIVE DATE OF 
THIS DIVISION WHO DOES NOT REQUEST WATER-METER UPSIZING. 
SEC. 37-52.03.  DEFINITIONS. 
IN ADDITION TO THE DEFINITIONS SET OUT IN SEC. 37-1, IN THIS 
DIVISION:

“APPLICANT” MEANS A PERSON TO WHOM THIS DIVISION APPLIES, AS 
IS SET OUT IN SECTION 37-52.02.  
“DEVELOPMENT ENTITLEMENT” MEANS APPROVALS BY THE CITY 
UNDER APPLICABLE PHOENIX CITY CODE PROVISIONS, INCLUDING 
BUT NOT LIMITED TO CHAPTER 32, FOR DEVELOPMENT, 
CONSTRUCTION AND/OR INSTALLATION OF IMPROVEMENTS ON 
SPECIFIED PROPERTY.  
“FACILITY” MEANS A SITE USED FOR A PARTICULAR PURPOSE. A 
FACILITY INCLUDES MULTIPLE SITES THAT ARE CONTIGUOUS OR 
PROXIMATELY LOCATED UNDER A COMMON OWNERSHIP OR 
CONTROL WHICH ARE USED FOR A PARTICULAR PURPOSE OR 
CLOSELY-RELATED PURPOSES. 
 “GALLONS PER DAY” MEANS DAILY WATER DEMAND CALCULATED 
ON AN ANNUAL AVERAGE BASIS. 
“LARGE WATER USER” MEANS A CUSTOMER OR POTENTIAL 
CUSTOMER OF THE CITY PUBLIC WATER SYSTEM WHOSE WATER 
DEMAND AT THE CUSTOMER’S FACILITY IS PROJECTED TO EQUAL OR 
EXCEED 250,000 GALLONS PER DAY. 
“SUSTAINABLE WATER SERVICE APPLICATION” MEANS THE FORM TO 
BE COMPLETED BY AN APPLICANT THAT WILL BE A LARGE WATER 
USER. A SUSTAINABLE WATER SERVICE APPLICATION MUST INCLUDE 
A WATER CONSERVATION PLAN. 
“USE OF RECYCLED WATER” MEANS CAUSING WATER TO BE REUSED 
OR SAVED AT AN APPLICANT’S FACILITY OR OTHERWISE CAUSING 
REUSE OR SAVINGS OF WATER AT A DIFFERENT LOCATION WITHIN 
THE CITY’S WATER SERVICE AREA THAT WOULD NOT HAVE 
OCCURRED WITHOUT THE APPLICANT’S EFFORTS.

“WATER CONSERVATION PLAN” MEANS A PLAN THAT SPECIFIES THE 
INDUSTRY STANDARDS, BEST PRACTICES, MEANS, AND DILIGENCE 
THAT AN APPLICANT WILL UNDERTAKE TO USE WATER AS 
EFFICIENTLY AS IS PRACTICABLE AND TO ENSURE THAT WATER IS 
NOT WASTED.   
“WATER MASTER PLAN” MEANS THE PLAN, AS MAY BE PERIODICALLY 
UPDATED, THAT REVIEWS THE CITY’S WATER RESOURCES AND ITS 
CURRENT AND PROJECTED DEMANDS BASED ON ANTICIPATED AND 
ENCOURAGED DEVELOPMENT WITHIN THE CITY.  
“WATER-METER UPSIZING” MEANS REPLACING EXISTING WATER 
METERS WITH WATER METERS OF A GREATER CAPACITY OR 
INSTALLING ADDITIONAL WATER METERS AT AN EXISTING FACILITY 
SO AS TO ALLOW GREATER USE OF WATER AT THE FACILITY. 
SEC. 37-52.04.  LARGE WATER USERS. 
A. A LARGE WATER USER MAY NOT CONNECT TO THE CITY PUBLIC 
WATER SYSTEM OR USE CITY WATER EXCEPT AS PROVIDED BY THIS 
DIVISION. 
 
B. APPLICATION TO BECOME A LARGE WATER USER.  
1. 
AN APPLICANT MUST SUBMIT TO THE DIRECTOR A 
SUSTAINABLE WATER SERVICE APPLICATION, WHICH MUST 
INCLUDE A WATER CONSERVATION PLAN, IF ANY OF THE 
FOLLOWING APPLY: 
a. 
AN APPLICANT WILL BE A NEW CUSTOMER, AND THE 
APPLICANT’S PROJECTION OF THE APPLICANT’S 
WATER USE, AS REVIEWED BY THE DIRECTOR, 
EQUALS OR EXCEEDS 250,000 GALLONS PER DAY. 
 
b. 
AN APPLICANT IS AN EXISTING CUSTOMER AND 
REQUESTS WATER-METER UPSIZING THAT WILL

ALLOW FOR WATER USE THAT EQUALS OR EXCEEDS 
250,000 GALLONS PER DAY. 
 
c. 
AN APPLICANT IS AN EXISTING CUSTOMER WHOSE 
WATER USE EQUALS OR EXCEEDS 250,000 GALLONS 
PER DAY AND REQUESTS WATER-METER UPSIZING. 
2. 
FOR UNDEVELOPED PROPERTY, A SUSTAINABLE WATER 
SERVICE APPLICATION MUST BE SUBMITTED AT THE TIME 
THE APPLICANT SUBMITS FOR ANY DEVELOPMENT 
ENTITLEMENTS. AN APPLICANT WHO WILL BECOME OR IS A 
LARGE WATER USER ON PREVIOUSLY DEVELOPED 
PROPERTY MUST SUBMIT A SUSTAINABLE WATER SERVICE 
APPLICATION AT THE TIME THE APPLICANT REQUESTS 
WATER-METER UPSIZING. 
3. 
THE SUSTAINABLE WATER SERVICE APPLICATION MUST 
IDENTIFY THE PHASING OF CONSTRUCTION OR 
DEVELOPMENT, THE APPROXIMATE NUMBER AND SIZE OF 
THE STRUCTURES TO BE SERVED, A REASONABLE 
DESCRIPTION OF THE NATURE AND TYPE OF WATER USE 
PROPOSED ON THE PROPERTY, AND A REASONABLE 
ESTIMATE OF THE PROJECTED ANNUAL AND MONTHLY 
WATER DEMAND.  
4. 
THE WATER CONSERVATION PLAN MUST INCLUDE 
TECHNIQUES AND TECHNOLOGIES THAT WILL REDUCE THE 
CONSUMPTION OF WATER, REDUCE THE LOSS OR WASTE 
OF WATER, IMPROVE THE EFFICIENCY IN THE USE OF 
WATER, OR ESTABLISH USE OF RECYCLED WATER BY THE 
LARGE WATER USER.  
C. CITY REVIEW OF SUSTAINABLE WATER SERVICE APPLICATIONS 
AND WATER CONSERVATION PLANS.

1. 
THE DIRECTOR WILL REVIEW PROPERLY COMPLETED 
SUSTAINABLE WATER SERVICE APPLICATIONS AND WATER 
CONSERVATION PLANS. THE DIRECTOR MAY REQUIRE 
ADDITIONAL INFORMATION TO BE SUBMITTED AS THE 
DIRECTOR DEEMS NECESSARY, AND THE APPLICANT MUST 
SUBMIT ANY ADDITIONAL INFORMATION REQUESTED 
WITHIN 60 DAYS OF RECEIVING THE REQUEST. 
2. 
THE DIRECTOR WILL ALLOW THE APPLICANT TO CONNECT 
TO THE CITY PUBLIC WATER SYSTEM AND USE CITY WATER 
AS A CUSTOMER OF THE CITY PUBLIC WATER SYSTEM, IF 
ALL OF THE FOLLOWING APPLY: 
a. 
THE DIRECTOR DETERMINES, IN THE DIRECTOR’S 
SOLE AND ABSOLUTE DISCRETION, THAT THE 
SUSTAINABLE WATER SERVICE APPLICATION AND 
WATER CONSERVATION PLAN DEMONSTRATE THAT 
THE LARGE WATER USER WILL UNDERTAKE TO USE 
WATER AS EFFICIENTLY AS IS PRACTICABLE AND TO 
ENSURE THAT WATER IS NOT WASTED. IN 
DETERMINING WHETHER WATER WILL BE USED AS 
EFFICIENTLY AS IS PRACTICABLE, THE DIRECTOR 
WILL CONSIDER IF THE APPLICANT’S FACILITY IS 
EXISTING AND THE PRACTICABILITY OF 
RETROFITTING THE EXISTING FACILITY WITH WATER 
CONSERVING TECHNOLOGIES AND PRACTICES. 
 
b. 
THE DIRECTOR, IN THE DIRECTOR’S SOLE AND 
ABSOLUTE DISCRETION, DETERMINES THAT THE 
PROPOSED WATER USE IS CONSISTENT WITH THE 
WATER MASTER PLAN. 
 
c. 
THE APPLICANT’S PROJECTED USE OF WATER IS 
LESS THAN 500,000 GALLONS PER DAY.

3. 
IF AN APPLICANT IS PROJECTED TO USE 500,000 GALLONS 
PER DAY OF WATER OR MORE, THE DIRECTOR MAY GRANT 
THE APPLICANT’S REQUEST TO CONNECT TO THE CITY 
PUBLIC WATER SYSTEM, UNLESS THE DIRECTOR, IN THE 
DIRECTOR’S SOLE AND ABSOLUTE DISCRETION, FINDS THAT 
ANY OF THE FOLLOWING APPLY:  
a. 
THE APPLICANT’S SUSTAINABLE WATER SERVICE 
APPLICATION AND WATER CONSERVATION PLAN FAIL 
TO DEMONSTRATE THAT THE LARGE WATER USER 
WILL UNDERTAKE TO USE WATER AS EFFICIENTLY AS 
IS PRACTICABLE AND TO ENSURE THAT WATER IS 
NOT WASTED. IN DETERMINING WHETHER WATER 
WILL BE USED AS EFFICIENTLY AS IS PRACTICABLE, 
THE DIRECTOR WILL CONSIDER IF THE APPLICANT’S 
FACILITY IS EXISTING AND THE PRACTICABILITY OF 
RETROFITTING THE EXISTING FACILITY WITH WATER 
CONSERVING TECHNOLOGIES AND PRACTICES. 
b. 
THE APPLICANT’S WATER USE WOULD BE 
INCOMPATIBLE WITH THE CITY’S AVAILABLE WATER 
RESOURCES. 
c. 
THE APPLICANT’S WATER USE WOULD BE 
INCONSISTENT WITH THE WATER MASTER PLAN. 
d. 
THE APPLICANT’S WATER USE WOULD BE OF AN 
INSUFFICIENT ECONOMIC BENEFIT TO WARRANT THE 
LARGE USE OF WATER.  
e. 
THE APPLICANT HAS NOT AGREED TO USE OF 
RECYCLED WATER TO OFFSET AT LEAST 30% OF ITS 
WATER USE OR SUCH OTHER PERCENTAGE AS THE 
DIRECTOR DETERMINES IS THE MAXIMUM USE OF

RECYCLED WATER THAT IS WARRANTED FOR THE 
APPLICANT’S FACILITY. 
4. 
IN MAKING THE DETERMINATION WHETHER TO ALLOW AN 
APPLICANT THAT IS PROJECTED TO USE 500,000 GALLONS 
PER DAY OF WATER OR MORE TO CONNECT AND BE 
SERVED BY THE CITY PUBLIC WATER SYSTEM, THE 
DIRECTOR SHALL CONSIDER ALL OF THE FOLLOWING: 
a. 
THE AVAILABILITY OF WATER TO WHICH THE CITY HAS 
LEGAL RIGHTS AND THE PHYSICAL ABILITY TO USE 
THAT IS NOT NEEDED TO SERVE EXISTING 
CUSTOMERS AND ANTICIPATED DEMAND AS SET OUT 
IN THE WATER MASTER PLAN.  
 
b. 
WHETHER THE PROPOSED WATER USE IS 
CONSISTENT WITH THE WATER MASTER PLAN. 
 
c. 
ECONOMIC IMPACT STUDIES SUBMITTED BY THE 
APPLICANT THAT PROVIDE EVIDENCE OF THE 
PROJECTED IMPACT RESULTING FROM THE 
PROPOSED WATER USE TO THE CITY’S ECONOMY 
AND THE ECONOMIC VALUE OF THE WATER TO BE 
USED EXPRESSED IN DOLLARS/GALLON OF WATER. 
 
d. 
WHETHER THE PROPOSED WATER USE WILL 
SUPPORT A KEY INDUSTRY CONSISTENT WITH THE 
CITY’S ECONOMIC DEVELOPMENT AND EDUCATION 
STRATEGIC PLAN.  
 
e. 
THE IMPACT OF THE WATER USE TO THE CITY’S 
DESIGNATION OF ASSURED WATER SUPPLY UNDER 
A.R.S. SEC. 45-576.

f. 
ANY EXTRAORDINARY CONSERVATION TECHNIQUES 
AND TECHNOLOGIES PROPOSED BY THE APPLICANT 
IN THE WATER CONSERVATION PLAN. 
 
g. 
WHETHER THE APPLICANT WILL CONVEY OR ASSIGN 
TO THE CITY ALL LEGAL RIGHTS TO A PHYSICAL 
WATER SUPPLY THAT WILL FULLY OFFSET THE 
APPLICANT’S PROJECTED WATER USE, WHICH WATER 
SUPPLY, WHEN ASSIGNED TO THE CITY, WILL MEET 
ALL REQUIREMENTS OF A.R.S. SEC. 45-576 AND THE 
REGULATIONS ADOPTED BY DWR [ARIZONA 
DEPARTMENT OF WATER RESOURCES] TO 
IMPLEMENT THAT SECTION. 
 
h. 
ANY OTHER INFORMATION THE DIRECTOR DEEMS 
RELEVANT. 
5. 
A LARGE WATER USER WHO BECOMES A CUSTOMER OF 
THE CITY IS SUBJECT TO ALL TERMS AND CONDITIONS OF 
SERVICE AS SPECIFIED BY THIS CHAPTER 37. 
D. AS A TERM AND CONDITION OF CONTINUED WATER SERVICE FOR 
A LARGE WATER USER, BOTH OF THE FOLLOWING MUST OCCUR: 
1. 
A LARGE WATER USER MUST SUBMIT AN UPDATED WATER 
CONSERVATION PLAN TO THE DIRECTOR EVERY FIVE 
YEARS.  
2. 
THE DIRECTOR DETERMINES, IN THE DIRECTOR’S SOLE AND 
ABSOLUTE DISCRETION, THAT THE UPDATED WATER 
CONSERVATION PLAN DEMONSTRATES THAT THE LARGE 
WATER USER WILL USE WATER AS EFFICIENTLY AS IS 
PRACTICABLE AND ENSURE THAT WATER IS NOT WASTED. 
E.  TERMS AND CONDITIONS OF SERVICE FOR LARGE WATER USERS.

1. 
IN ADDITION TO THE OTHER TERMS AND CONDITIONS OF 
WATER SERVICE AS SPECIFIED BY THIS CHAPTER 37, THE 
FOLLOWING ARE TERMS AND CONDITIONS OF SERVICE OF 
A LARGE WATER USER: 
a. 
THE LARGE WATER USER MAY NOT IN ANY YEAR USE 
WATER IN EXCESS OF 120% OF THE AMOUNT SET OUT 
IN THE APPLICANT’S SUSTAINABLE WATER SERVICE 
APPLICATION, AS THAT APPLICATION HAS BEEN 
APPROVED BY THE DIRECTOR. 
b.     THE LARGE WATER USER MUST IMPLEMENT, 
OPERATE, AND MAINTAIN ALL USE OF RECYCLED 
WATER, TECHNIQUES, AND TECHNOLOGIES 
CONSISTENT WITH THE LARGE WATER USER’S MOST 
RECENTLY APPROVED WATER CONSERVATION PLAN. 
2. 
IN ADDITION TO ANY OTHER SANCTION AVAILABLE UNDER 
THIS CHAPTER, THE DIRECTOR MAY SUSPEND WATER 
SERVICE TO A LARGE WATER USER WHO VIOLATES THIS 
SUBSECTION. THE DIRECTOR WILL PROVIDE NOTICE OF 
ANY DISCONTINUATION OF WATER SERVICE AS PROVIDED 
BY SECTION 37-88(B). IF WATER SERVICE IS SUSPENDED 
UNDER THIS SUBSECTION, THE WATER SERVICE WILL NOT 
BE RESTORED UNTIL THE LARGE WATER USER HAS COME 
INTO COMPLIANCE WITH THE REQUIREMENTS OF THIS 
SUBSECTION.

SEC. 37-52.05. ADDITIONAL REMEDIES. 
A.  A LARGE WATER USER WHO VIOLATES ANY PROVISION OF THIS 
DIVISION, IN ADDITION TO ANY OTHER SANCTION AUTHORIZED BY 
THIS CHAPTER, IS SUBJECT TO A CIVIL SANCTION OF NOT MORE 
THAN THE FOLLOWING AMOUNTS: 
1.   
TWO HUNDRED PERCENT OF THE CHARGES FOR WATER 
USED, OR ESTIMATED TO HAVE BEEN USED, IN VIOLATION 
OF THIS DIVISION, IF THE VIOLATION IS THE LARGE WATER 
USER’S FIRST VIOLATION OF THIS DIVISION AND THE 
VIOLATION CONTINUED FOR LESS THAN ONE YEAR. 
2.   
FIVE HUNDRED PERCENT OF THE CHARGES FOR WATER 
USED, OR ESTIMATED TO HAVE BEEN USED, IN VIOLATION 
OF THIS DIVISION, IF THE VIOLATION IS THE LARGE WATER 
USER’S SECOND VIOLATION OF THIS DIVISION OR IF THE 
VIOLATION CONTINUED FOR MORE THAN ONE YEAR BUT 
LESS THAN TWO YEARS. 
3.   
ONE THOUSAND PERCENT OF THE CHARGES FOR WATER 
USED, OR ESTIMATED TO HAVE BEEN USED, IN VIOLATION 
OF THIS DIVISION, IF THE VIOLATION IS THE LARGE WATER 
USER’S THIRD VIOLATION OF THIS DIVISION OR IF THE 
VIOLATION CONTINUED FOR MORE THAN TWO YEARS BUT 
LESS THAN THREE YEARS. 
4.   
TWO THOUSAND PERCENT OF THE CHARGES FOR WATER 
USED, OR ESTIMATED TO HAVE BEEN USED, IN VIOLATION 
OF THIS DIVISION, IF THE VIOLATION IS THE LARGE WATER 
USER’S FOURTH OR MORE VIOLATION OF THIS DIVISION OR 
IF THE VIOLATION CONTINUED FOR MORE THAN THREE 
YEARS.

B.  IF, AS A RESULT OF A LARGE WATER USER’S VIOLATION OF THIS 
DIVISION OR STATE LAW, THE CITY IS ASSESSED A CIVIL PENALTY OR 
IS ORDERED TO TAKE REMEDIAL ACTION BY DWR [ARIZONA 
DEPARTMENT OF WATER RESOURCES], THE LARGE WATER USER 
MUST PAY TO THE CITY THE AMOUNT OF THE CIVIL PENALTY, ALONG 
WITH ALL COSTS AND EXPENSES INCURRED BY THE CITY DUE TO 
THE LARGE WATER USER’S VIOLATION. 
C. THE DIRECTOR MAY ISSUE A REQUEST FOR COMPLIANCE, NOTICE 
OF VIOLATION, AND CIVIL CITATION FOR A VIOLATION OF THIS 
DIVISION. CIVIL CITATIONS WILL BE ISSUED AND PROSECUTED IN 
ACCORDANCE WITH THE LOCAL RULES OF PRACTICE AND 
PROCEDURES OF THE PHOENIX CITY COURT. 
 
 
SECTION 3. It is hereby declared to be the intention of the City Council that 
the sections, paragraphs, sentence, clauses, and words of the City Code are severable, 
and if any word, clause, sentence, paragraph, or section of the City Code is declared 
unconstitutional or invalid for any reason by the valid judgment or decree of any court of 
competent jurisdiction, such unconstitutionality  or invalidity shall not affect any of the 
remaining words, clauses, sentences, paragraphs, or sections of the City Code, since 
the same would have been enacted by the City Council without the incorporation in the 
City Code of any such unconstitutional or invalid word, clause, sentence, paragraph, or 
section.

PASSED by the City Council of the City of Phoenix this ___ day of ____, 
2024. 
_____________________________________ 
  M A Y O R 
ATTEST: 
____________________________ 
Denise Archibald, City Clerk 
APPROVED AS TO FORM: 
Julie M. Kriegh, City Attorney 
BY: ___________________________ 
_______________________________ 
REVIEWED BY: 
____________________________ 
Jeffrey Barton, City Manager 
CLC;2423308;LF24-0459;3-6-24