REAL ESTATE TOPICS:  WATER, WATER EVERYWHERE?

Water is a topic that is understandably something that everyone considering moving to the desert southwest, Tucson in particular, is interested in – or should be.  Perhaps the most often asked question:  “How is the water supply?” – soon followed by:  “Where is the water supply?”  This second question usually comes right after driving across one of our `rivers’ – that has no water in it.  These and other questions do not have simple answers.  And there are scores of other questions that should be asked.  This article will try to address the larger questions about water issues in the Old Pueblo to the extent possible.

In the spirit of full disclosure, let me start by making the following statement.  At the time of this writing in March, 2007, Tucson is considered to be in its seventh year of drought.  This is a desert.  Drought is normal here.  Water will always be an issue in Tucson – as it is everywhere – for one reason or another.

Arizona's desert climate directly affects our economy and quality of life. All economic activity, including mining, irrigated agriculture, and growth of cities occurs only where dependable water supplies are available. As a result, Arizona places a high priority on managing its limited water to ensure that secure water supplies are available now and well into the future.

Sources of Water

There are basically four categories of water supplies available in Arizona: Colorado River water, surface water other than Colorado River water, groundwater and effluent. The utility of each type of water depends on its quantity, quality, reliability and economic feasibility.

Surface Water

Surface water from lakes, rivers and streams is Arizona's major renewable resource.  The number of lakes and rivers in Arizona is actually quite remarkable.  That, and the ready access to the Pacific in less than a day’s drive through California or Mexico, causes the undocumented claim that Arizona has more licensed watercraft than any other state per capita.  However, because of our desert climate, the amount of surface water available can vary dramatically from year to year, season to season, and place to place. In order to make the best use of the surface water when and where it is needed, storage reservoirs and delivery systems have been constructed throughout the state. Most notable are the major reservoir storage systems located on the Salt, Verde, Gila and Agua Fria rivers. Almost all of the natural surface water in Arizona has been developed.

Colorado River Water

A separate category of surface water in Arizona is the water supplied through the Colorado River. The federal government constructed a system of reservoirs on the River to harness its supplies for use in several states. Arizona, California, Nevada, New Mexico, Utah, Colorado, Wyoming and Mexico share the River's resources. Rights to use Colorado River water are quantified by a string of legal authorities known as the "Law of the River." Based on this body of law, Arizona has the right to use 2.8 million acre feet annually of Colorado River water. Mohave, La Paz and Yuma county water users rely on Colorado River as their principal water supply. When fully utilized, the Central Arizona Project (CAP) will deliver on average 1.5 million-acre feet of Colorado River water to Maricopa, Pinal and Pima Counties.  Water has been delivered to the Tucson region since 1993 through the CAP canal.  For more information about the Central Arizona Project, take a look at the following links:  http://www.cap-az.com/, and  http://www.ci.tucson.az.us/water/water_law.htm.

Groundwater

About 40 percent of the state's water use comes from groundwater sources. Groundwater is found beneath the earth's surface in natural reservoirs called aquifers. In most cases the water stored in these reservoirs has been in place for millions of years. Throughout this Century, groundwater has been pumped out more rapidly than it is being replenished, creating a condition called overdraft. Though a large amount of water remains stored in Arizona's aquifers, its availability is limited by location, depth and quality. By continuing to overdraft the state's groundwater supplies, we challenge our ability to ensure a secure water supply for the future. In recognition of this threat, Arizona implemented the Groundwater Management Code in 1980. The Groundwater Code promotes water conservation and long-range planning of our water resources.

For more information about ground water and aquifers in Tucson:

http://cals.arizona.edu/AZWATER/publications/sustainability/report_html/chap3_01.html, and in the larger area including Arizona:  http://capp.water.usgs.gov/gwa/ch_c/C-text8.html

Reclaimed Water

Reclaimed water, or effluent, is the one increasing water source in our state. As our population and water use grows, more treated wastewater will be available. Reclaimed water is treated to a quality that can be used for purposes such as agriculture, golf courses, parks, industrial cooling, or maintenance of wildlife areas.

Legal Authority Over Water

In addition to the practical, geological, environmental and ecological considerations related to water, property owners’ water rights in Arizona are restricted in significant ways.  The Arizona Department of Water Resources (ADWR) is the controlling authority by virtue of Arizona Revised Statutes (ARS) Title 45, Articles 4, 8, 10, and 12 on the topic of private water wells. 

http://www.azleg.state.az.us/ArizonaRevisedStatutes.asp?Title=45

Active Management Areas (AMA)

Arizona has identified five hydrologic water sheds and calls them Active Management Areas (AMA) and imposes a restriction in all them for most private water wells to have a maximum pumping capacity of 35 gallons per minute (gpm).  There is a further restriction that only allows a second well to be drilled if the first one produces less than 3 gpm.

Outside of the AMAs, private water wells have no capacity restrictions except that which is a function of the water source.

Private Water Well Restrictions

Perhaps the most significant restriction on the ability of private property owners’ to drill a private well came in a state law passed in 2005.  In areas served by an established water system that has the 100 Year Assured Supply Certification designation, homeowners can no longer have both a private water well and service by the public system.

Wells drilled before December 31, 2005 are grandfathered in and may stay in service.  Naturally, this is an inherent enhancement to the value of those properties.

Other restrictions on private water wells exist.  By code, they must be located a minimum of 100 feet from any septic tank or leach field, and no closer than 50 feet from any property line.  As a practical matter, there must be sufficient access for two heavy duty vehicles to be parked side-by-side to accomplish the drilling of a well.  Continued free access must then be maintained for future service and repair to the well and associated equipment.  Naturally, electric service must be available for operation of the well pump and associated controls.  These factors alone will sometimes make it impossible to have a private water well.

Whether drilling a new well, deepening an existing well, drilling a replacement well, or abandoning a well, there is a statutory requirement to complete the proper paperwork.  There is a Notice of Intent form, a Well Driller’s Log, and a Completion Report to be filed by the owner and/or the pump installer.

There may be restrictions or prohibitions imposed by Home Owner Associations and their Conditions, Covenants, and Restrictions (CC&Rs) regarding wells and/or the associated storage tanks and other essential apparatus.

The best possible resource and guide for drilling a domestic water well in Arizona is found at the following link:

http://www.azwater.gov/dwr/Content/Publications/files/wellguide.pdf

Administration of Wells

When a well is drilled it is uniquely identified with a number assigned by the Arizona Department of Water Resources (ADWR) that will identify “title” or ownership of the well.  Each well number starts with 55- followed by a six digit number, e.g., 55-123456.  That number is permanently assigned to the well – not the owner.  It transfers when ownership transfers (assuming the correct addendum is recorded).  There are a myriad of procedures and forms to follow and complete in order to do anything related to a well from drilling to abandoning.  The following link will provide all of that information:

http://www.azwater.gov/dwr/Content/Find_by_Category/Permits_Forms_Applications/default.htm

Well Parameters & Capacities

There are private water wells on record that vary in size from 3 inches to 60 inches in diameter and from 20 feet to over 1,000 foot in depth.  The costs associated with drilling a well vary just as much.  Drilling the hole in the ground and lining it with a pipe may typically cost anywhere from $10,000 to $30,000 or more.  The associated equipment and its installation may be an additional cost of anywhere from $5,000 to $15,000.  A typical residential water well costs about $25,000 to $50,000.  Of course, there is then the additional cost of operation and maintenance.  And, with any well, there is some degree of uncertainty to its continued production capability and life expectancy.

The performance of a private water well will typically be from less than 1 gpm to perhaps 100 gpm or more.  The greatest influence over the performance will be the aquifer itself.  Physical characteristics of the well, i.e., diameter, depth, perforations, and of course the pump and motor will all affect the performance too.  Though this measure of gallons per minute is of interest, a better measure of well productivity is its sustained yield over time.  And, of course, this capability often changes with the seasons and over time and with additional adjacent burden being placed on the aquifer.  Keep in mind too that water quality can also change over time.

Shared Wells

In addition to private water wells that serve just that owner’s water needs, there are an abundance of wells that are shared by several residential users.  This is accomplished by virtue of a Well Share Agreement that should be recorded in the county where the well is located.  Naturally, prospective buyers of property that is served by a Well Share Agreement should thoroughly investigate all parameters of that arrangement.  Ownership and management information, maintenance, financial contributions, etc. should all be clearly identified in writing and completely understood.

Public Water Supply

Residential properties that are located in “subdivisions” most typically are served by some time of public water service.  In the Tucson metropolitan area for example there are a number of public providers.

The Tucson Water Department provides water service to most city residents and a large number of other area communities.  http://www.tucsonaz.gov/esd/

Other major Tucson Metropolitan Area municipalities like Oro Valley

http://www.ci.oro-valley.az.us/WaterUtility/,

Marana  http://www.marana.com/index.asp?nid=60,

and Green Valley

http://www.communitywater.com/

also have their own water companies.

There are isolated cases where Oro Valley Water supplies water to properties physically located in the municipality of Marana.  This can happen when one town thinks it is going to annex an unincorporated part of the county but is beaten to the punch by a competing town.

Additionally there are many other water providers to smaller communities:

     Avra Water Co-op . . . . . . . . . . . . . . . . . . . . . .          520-624-7628 
     Canada Hills Water Company . . . . . . . . . . . . .          520-297-5225 
     Del Lago Water Company . . . . . . . . . . . . . . . .          520-647-3679 
     Dunbar & Logan Hills Water Company . . . . . .            520-744-3130 
     Flowing Wells Irrigation District . . . . . . . . . . . .          520-887-4192 
     Forty-Niner & Country Club Estates . . . . . . . .            520-749-4222 
     Hub Water Company . . . . . . . . . . . . . . . . . . . .         520-296-9646 
     I M Water Company . . . . . . . . . . . . . . . . . . . . .        520-797-7445 
     K & V Water Company . . . . . . . . . . . . . . . . . . .        520-298-2351 
     Lakewood Water Company . . . . . . . . . . . . . . .          520-743-0678 
     Largo del Oro Water Company . . . . . . . . . . . .           520-298-2351 
     Las Quintas Serenas Water Company . . . . . .            520-625-8040 
     Lazy C Water Service . . . . . . . . . . . . . . . . . . .          520-743-0758 
     Metropolitan Water Company . . . . . . . . . . . . .           520-575-8100 
     Mount Lemon Co-op Water Company . . . . . .             520-576-1538 
     Rancho Del Conejo Water Company . . . . . . .             520-682-8335 
     Rancho Vistoso Water Company . . . . . . . . . .            520-575-1456 
     Ray Water Company . . . . . . . . . . . . . . . . . . . .         520-623-1332 
     Rincon Ranch Estates Water Company . . . . .            520-298-0173 
     Sandario Water Company . . . . . . . . . . . . . . . .          520-623-5172 
     Spanish Trail Water Company . . . . . . . . . . . . .          520-577-2616 
     Vail Water Company . . . . . . . . . . . . . . . . . . . . .       520-647-3679 
     Winterhaven Water & Development . . . . . . . . .           520-327-0111

For example, Metro Water District is a public water provider serving water primarily in the northwest metropolitan Tucson area.  They provide water to over 17,500 connections serving the consumption and fire protection of some 45,000 people and hundreds of businesses.  http://www.metrowater.com/

Public Water Costs

Certainly there is great variation in the expense of routine water supply to residential property.  Infinite variables are possible in size of the house, number of occupants, their habits, number of bathrooms, toilet tank capacities, irrigation systems and practices, lawns, plants, swimming pools, spas, etc., etc., etc.

Just as an example, this writer is married, no children or relatives left in the home, modest size property, not overly zealous about water conservation but respectful of this precious commodity.  We happen to be served by Metro Water District.  During 2006, our average water consumption was 17,658 gallons per month and the resulting water/sewer bill was just under $79.00 per month on average which figures out to be just over one-half cent per gallon.  The actual rate structure for the water portion is currently as follows:

                        Base Rate                                                         $12.94

                        1^st Tier (1-12,000 gallons/month)                 2.06 per 1,000 gallons

                        2^nd Tier (12,001 – 20,000 gallons/month)    3.23 per 1,000 gallons

                        3^rd Tier (20,001 – 32,000 gallons/month)     4.07 per 1,000 gallons

                        4^th Tier (32,001 or more gallons/month)       5.42 per 1,000 gallons

A charge for the associated sewer service (which is included in the monthly bill total) is not quite so straightforward.  In fact, it is painfully complex and without any apparent logic.  I am told that if you ever fully understand that calculation, your brain will explode.  If you insist on more detail, please examine the following link:  http://www.wwm.pima.gov/custserv/faq.htm#how at your own risk.

Our peak use months (as might be expected in the desert) are July through September.  Irrigation demands are at their highest then.

Our experience is probably fairly typical but that certainly cannot be guaranteed.

Seller Disclosures and Buyer Due Diligence

It should go without saying, when residential property is being considered for purchase, the water supplier should be determined and evaluated.  When there is a private water well on the property being purchased, a DOMESTIC WATER WELL ADDENDUM should be made part of the purchase contract:

 http://www.aaronline.com/documents/DWWA.pdf

The property seller should then provide DOMESTIC WATER WELL/WATER USE ADDENDUM to the SELLER’S PROPERTY DISCLOSURE STATEMENT (“SPDS”):  http://www.aaronline.com/documents/dwwaSpds.pdf

Adequate time, perhaps two weeks or more, should be provided for by extending the normal 10 day inspection period to allow for proper sampling and evaluation of the water supply and quality.

The Big Picture

For a really good `big picture’ discussion of the water issue in Tucson, an excellent dissertation entitled:   Water Resource Availability for the Tucson Metropolitan Area, was published in July 2006 by the University of Arizona.  It is available online at:

http://cals.arizona.edu/AZWATER/presentations/Megdal.az.water.resource.avail.for.tucson.pdf

Links to additional information:

The Arizona Department of Water Resources (ADWR)

http://www.azwater.gov/dwr

The University of Arizona Water Resources Research Center

http://www.ag.arizona.edu/azwater/

National Groundwater Association

http://www.ngwa.org

Arizona Wells – NASA mapping

http://www.sahra.arizona.edu/wells/

DISCLAIMER

John P. Hale is owner and Designated Broker of Touchstone Residential Realty, Inc., 2485 West Tom Watson Drive, Tucson, Arizona 85745.  He has been a residential real estate agent in the greater Tucson Metropolitan area since 2000.  In addition to being licensed as a Broker rather than a salesperson, John holds the following designations awarded by the National Association of REALTORS^®:  ABR – Accredited Buyer Representative, ASR – Accredited Seller Representative, CRS – Certified Residential Specialist, and GRI – Graduate Realtor Institute.  And, John is among the very few that have been named, MRE – Master of Real Estate by the Arizona Association of Real Estate.

Please note that this article was written by him to reflect the author’s opinion of good practice at the time of its’ writing for the general benefit of those considering sale or purchase of residential real estate, it is not intended as definitive legal advice and you should not act upon it as such without seeking independent legal counsel.  Frequent changes in the law and standards of practice may cause this information to become outdated and no longer applicable or even incorrect.