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Chaparral City Water Company and
ADWR agree on settlement



Town of Fountain Hills

During late 2003 and the first quarter of 2004, M&A was retained by Chaparral City Water Company, who supplies water to residents of the Town of Fountain Hills, to assist in demonstrating the physical availability of additional water supplies to serve the current and projected future needs of the community. Arizona Department of Water Resources (ADWR) had considered revoking the water company’s Assured Water Supply Designation based on ADWR calculations indicating that Chaparral City’s use had potentially exceeded their physical supply. However, following completion of investigations and aquifer testing by M&A on Chaparral City Water Company wells, ADWR issued a Consent Order that will allow development in the Town of Fountain Hills to proceed.

Under the “Stipulation and Consent Order” issued by ADWR Director Herb Guenther, Chaparral City will continue their efforts to join the Central Arizona Groundwater Replenishment District (CAGRD), and will conduct testing operations to ascertain the volume of groundwater available for use in the Fountain Hills area. The concept may be for ADWR to allow the water company to compensate for additional groundwater pumping in response to demand through the use of recharge credits from the CAGRD.

Another provision of the Consent Order relates to new development in the Town of Fountain Hills. The Consent Order specifies that although the town may approve and developers may construct new subdivisions, developers may not sell or lease lots or units in these subdivisions until ADWR issues a determination that Chaparral Water Company has sufficient water to serve the current and projected demand.

“We are very pleased with the ruling by ADWR, and we intend to pursue all available opportunities to stay in compliance,” said Robert N. Hanford, District Manager for Chaparral City Water Company. “Most importantly, we believe this agreement truly serves the best interests of the people of Fountain Hills.” Because of the settlement, ADWR agreed to forego a hearing on this matter initially scheduled for February 10, 2004.

Based on review of provisional test results submitted by M&A, ADWR made a preliminary assessment that the water supply in the Fountain Hills area is sufficient to meet current and projected demands of the water company for the next 100 years, and that the company’s Water Supply Designation will be retained.

Questions regarding this project should be directed to Greg Wallace at our Scottsdale office, (480) 948-7747

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