WATER SERVICE PROCEDURES & REGULATIONS

(Effective October 8, 2002)

I.  General

A.   AWC.  Arcadia Water Company (“AWC”) is an Arizona nonprofit corporation incorporated in 1919 to furnish irrigation water to its members.  Pursuant to AWC’s amended Articles of Incorporation (the “Articles”), owners of land in AWC’s project area have rights to the delivery of water conditioned on the payment of AWC’s charges and any assessments and subject to AWC’s rules and regulations governing service and the suspension thereof.  These Water Service Procedures & Regulations (“Rules”) constitute bylaws pursuant to A.R.S. § 10-3140, and, subject only to the Articles, replace all prior inconsistent rules, regulations, bylaws and policies of AWC.

B.   Management.  Responsibility for the management of AWC is vested in an 11‑person Board of Directors elected by its members (the “Board”), which has adopted these Rules.  AWC employs a General Manager to oversee its operations and report to the Board, and an Irrigation Coordinator to coordinate AWC Irrigator Services (described below) and report to the General Manager.

C.   Water System.  Generally, AWC owns the wells, pumping plant, reservoir, and main (or “trunk”) distribution lines and major diversion boxes.  The trunk lines run from the reservoir under AWC’s parking lot West along Camelback Road and Exeter Boulevard to the vicinity of 46^th Street.  AWC also owns lateral pipelines at a number of “high points” connecting major diversion boxes.  This system (the “AWC System”) is operated and maintained by AWC.  All sub-distribution systems (the “Sub-Systems”) which convey water from the AWC System to its members’ land, such as those within particular subdivisions, are owned and must be maintained by the relevant members or their homeowner associations.

II.  Services

A.   Basic Services.  AWC will make reasonable efforts to deliver water to defined delivery points on the AWC System, as shown on the attached map, as near to scheduled times as operating conditions permit, and in a manner calculated to facilitate efficient deliveries to successive properties and minimize waste.  AWC may temporarily reduce, suspend or reschedule deliveries if circumstances (such as heavy rain, water shortages or equipment problems) warrant.  These services (“Basic Services”) are covered by AWC’s standard hourly charges (currently $10.50 per hour, plus tax), which are the same whether or not a member also uses AWC Irrigator Services.

B.   Water Tendering Services.  The ordering, receipt, control and application of water beyond the defined AWC System delivery points ("Water Tendering Services") have historically been the responsibility of the individual water users, as AWC has not provided services beyond the AWC System delivery points.  Some users have elected to provide their own Water Tendering Services ("Self-Servers"), and some have elected to obtain Water Tendering Services through private irrigators not affiliated with AWC ("Private Irrigators").

C.   Private Irrigators.  Each Private Irrigator must register with AWC, assure that AWC at all times has a current list of the names and addresses of the Private Irrigator’s customers, be familiar with the Sub-Systems and each of his or her customer’s properties and equipment, and comply with the Code of Conduct set forth below, which is also applicable to AWC employees providing AWC Irrigation Services.  Violation of these Rules may result in termination of a Private Irrigator’s registration, in which case water orders will no longer be accepted from the Private Irrigator.  A list of Private Irrigators who currently provide Water Tendering Services in AWC's project area is available from AWC's office; however, AWC makes no recommendation with respect to (and has no responsibility for any act or omission of) any Private Irrigator. 

D.   AWC Irrigator Services.  AWC will make Water Tendering Services ("AWC Irrigator Services") available to water users in its project area on a limited “roll-out” basis.  AWC intends to eventually offer AWC Irrigator Services to all water users.  To ensure quality service, AWC plans to expand the service in its project area only when AWC is properly staffed to serve more users.  Users will receive notices from AWC when AWC Irrigator Services are available for their properties.  Employees providing AWC Irrigator Services will wear company shirts and carry AWC identification cards with their pictures, and any questions regarding their services may be directed initially to the Irrigation Coordinator.  Initially, the monthly charges for AWC Irrigator Services will be the following amounts based on the hours of irrigation per delivery:  (i) .25 hour - $30; (ii) .50 - .75 hour - $32; (iii) 1 to 1.25 hours - $33; (iv) 1.50 to 1.75 hours - $34; (v) 2.00 to 2.25 hours - $36; (vi) 2.50 to 2.75 hours- $37; 3.00 to 3.25 hours - $39; 3.50 to 3.75 hours - $40; 4.00 to 4.25 hours -  $48; 4.5 hours - $49; 4.75 hours - $52; 5.00 hours - $55; 6.00 hours - $63 and (vi)  more than 7 hours - $89.

New members may contact AWC's office to open water accounts and/or request AWC Irrigator Services.  Subject to these Rules and availability of the relevant services, water users may choose to continue to be Self-Servers or use Private Irrigators, or elect to obtain AWC Irrigator Services.

III.  Delivery and Use of Water

A.   Introduction.  It is in the best interests of AWC and its members that our supply of water be carefully managed and conserved.  The water which may be delivered to any land in AWC’s project area is limited to that which can be put to beneficial use on the land.  This requires good faith cooperation and coordination among AWC, Private Irrigators and Self-Servers to avoid flooding, spillage into neighboring property and loss of service ordered by neighbors.  Both the Phoenix and Scottsdale City Codes make it unlawful to allow irrigation overflow into public streets and alleys.

B.   Responsibilities.  It is the responsibility of each water user to comply with all Rules applicable to the ordering, taking and use of water, and the maintenance of Sub-Systems used by that water user and of lines, valves and related water delivery equipment located on that user’s property.  Water users should only order water for times during which they will be able to receive, accept and control it in accordance with these Rules.  Each water user must also maintain the berms, dikes, borders, boundaries and slopes on and surrounding his or her property.  In addition to Self-Servers, each water user using a Private Irrigator is responsible for assuring that the Private Irrigator comply with these Rules.

C.   Ordering Water.  AWC normally provides water deliveries approximately once every 28 days during its “winter season” and once every 14 days during its “summer season.”  Currently, orders for the number of hours of water delivery during each service (in ¼ hour increments with a ¼ hour minimum) must be placed by the deadline dates stated thereon on sheets provided for this purpose in order boxes marked “Arcadia Water Company” and strategically located in AWC’s project area.  AWC will pick up those sheets, list the times and hours scheduled for water delivery to each user, and post the schedules in the same boxes.  These schedules should not be removed from the boxes.  Water deliveries may not be canceled once ordered and posted.  If a user fails to timely order water and then requests service, AWC may at its option honor that request for an additional charge if a head of water is available at the end of the water run.  AWC may also at its option accept telephone orders for water service to groves and other large tracts on an irregular schedule.

D.   Taking Deliveries.  All users must take their water deliveries when (and only when) scheduled by AWC.  All users, and any Private Irrigators they use, must fully open their valves at the beginning of, and fully close their valves at the end of, the scheduled delivery times.  Valves should not be screwed completely out of the holes in the control boxes.  It is essential that each water user coordinate the closing of his or her valves with the opening of the next scheduled user’s valves.  Users may not damage or interfere with any part of the water delivery system.  Any adjacent water users who exchange delivery times are still responsible for the regular scheduled delivery of water to subsequent users, and must put the water back in the correct pipeline.  Leaky and open valves result in an inefficient use of water, and all water users are entitled to receive their full shares of ordered water when scheduled by AWC.

E.   Substitute Performance.  AWC may at its option take such actions as are reasonably appropriate to cure or prevent violations of these Rules by any water users or Private Irrigators, including without limitation the opening and closing of valves to assure adherence to posted water delivery schedules.  By accepting Basic Services, each water user authorizes AWC to come on his or her property as and when reasonably required to do so.  If practical, violations will receive one warning, and water users may be assessed a $25 charge for each subsequent violation by that user or his or her Private Irrigator.

IV.  Repair Policy

A.   Member Responsibility.  Each member is responsible for maintaining any water delivery facilities (other than the AWC System) on his or her property, including valves, riser pipes (vertical pipes from the Sub-System to the surface of the property) connecting with the valves, the stub-off pipelines (horizontal lines from the Sub-System to and which only serve the property), and lines from one side of the property to the other which only serve the property.  In addition, members or their homeowner associations are responsible for maintaining those portions of the Sub-System which serve their properties.

B.   AWC Rights.  AWC reserves the right to make repairs to individual delivery systems and Sub-Systems which are reasonably required to protect the rights of downflow water users, protect property and/or comply with applicable laws, if those repairs are not promptly made by the responsible members after notice of the need therefore from AWC.  AWC may assess the responsible member(s), pro-rata in the case of repair of a Sub-System which serves multiple owners, with the costs thereof.

C.   Cost-Sharing.  AWC may elect to pay all or part of the costs of repairs to leaks in Sub-System pipelines or control boxes in a shared or “neutral area,” and also to maintain any handles or valves inside the control boxes in those areas.  Such repairs will be done at the discretion of the General Manager, considering the severity of leaks and availability of contractors.  AWC may cover the initial $500 in costs, and one-half of any additional cost up to a maximum total repair cost of $1500, and thus a maximum cost to AWC of $1000, for any individual repair.  If any individual repair requires more that 15 feet of pipeline or the costs thereof to AWC will exceed $1000, the General Manager will obtain prior approval from the Board.  Total expenditures for this purpose may not exceed $15,000 in any fiscal year without prior approval from the Board.

D.   Plan Approval.  If a property owner wants to relocate pipelines, control boxes and/or related facilities on his or her property, at his or her own expense, the project must be approved in advance by AWC.  The relocation must conform to specifications approved by AWC, and the installation will be subject to inspection, to protect the rights of downflow water users.  The owner will be responsible for any damage to the AWC System or any Sub-System caused by his or her contractors, and shall have any such damage promptly repaired.

V.  Miscellaneous

A.   Code of Conduct.  Any of the following by any Private Irrigator or employee of AWC directly or indirectly in connection with any water delivery service will constitute a violation of these Rules:  (i) illegal conduct; (ii) threatening, intimidating, abusive or vulgar language; (iii) engaging in acts of dishonesty, fraud, theft or willful acts of sabotage; (iv) intoxication or the use of alcohol or drugs on the job; or (v) driving a vehicle recklessly or otherwise not obeying traffic laws.

B.   Billing.  AWC will close its books at approximately 4:30 p.m. on the last day of each month, and mail statements as promptly as practicable thereafter.  Statements are due on receipt and delinquent if not paid by the end of the month in which mailed.  A delinquency charge (currently 1½% per month) will be imposed and accrue on any delinquent sums remaining unpaid.  AWC may suspend water service to any user whose account has been delinquent for a full month until it is brought current.  Special water deliveries will not be made for users who bring delinquent accounts current, but once the account is current the user may again obtain service at the next normal delivery.

C.   Termination of Service.  Violation of these Rules (other than by non-payment of statements, which is governed by Section V.B) may result in suspension or termination of water service commencing five days after AWC mails notice of the violation to the water user at his or her address on AWC’s records, unless the violation is cured during such five-day period and not repeated.

D.   Communications.  All water users (including Self-Servers), Private Irrigators and AWC employees should communicate with each other to peacefully and diplomatically coordinate services and resolve any conflicts or disputes.  If that is unsuccessful, any water user or Private Irrigator may contact the General Manager, who is available to help resolve any problems that may arise.  If any water user or Private Irrigator believes any decision or interpretation of the General Manager under these Rules is erroneous, he or she may contact any officer of AWC and request that the matter be reviewed by the Board.

BOARD OF DIRECTORS