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ITEM NO. 11e |
TOWN OF PRESCOTT VALLEY
STAFF REPORT
STAFF REPORT
DATE: 10/22/2026
TO: Mayor & Town Council
THROUGH: Gilbert Davidson, Town Manager
FROM: Ivan Legler, Town Attorney
DEPARTMENT: Legal
AGENDA TYPE: New Business
SUBJECT: Proposed Repeal Ordinance No. 2023-930 Water Requirements Non-Subdivision Residential Developments - Consideration & Possible Action (1st Reading) [Ivan Legler, Town Attorney]
TO: Mayor & Town Council
THROUGH: Gilbert Davidson, Town Manager
FROM: Ivan Legler, Town Attorney
DEPARTMENT: Legal
AGENDA TYPE: New Business
SUBJECT: Proposed Repeal Ordinance No. 2023-930 Water Requirements Non-Subdivision Residential Developments - Consideration & Possible Action (1st Reading) [Ivan Legler, Town Attorney]
| VISION 2024 FOCUS AREA: Water and Land Stewardship - Responsible planning for sustainable water management and land conservation. |
SUMMARY/BACKGROUND:
On January 11, 2024, the Town Council adopted Ordinance No. 2023-930 requiring non-subdivision residential developments in the Town to obtain commitments for renewable water supplies (i.e., effluent interests, available extinguishment credits, etc.) or imported water supplies as a condition precedent for any Town approvals (similar to what residential subdivisions are required to obtain to receive Certificates of Assured Water Supply from the Arizona Department of Water Resources (ADWR) because of the Town's location within the Prescott Active Management Area (AMA). The basis and authority for adopting said Ordinance was set forth in extensive recitals that explained (among other things) the importance of reserving the remaining buffer of Assured Water Supply Program allocation (available since the 1999 ADWR declaration that the AMA was no longer in a state of safe groundwater yield) for true commercial, retail, industrial and governmental services.
Unfortunately, the Town has since been notified by the Goldwater Institute that it believes Ordinance No. 2023-930 conflicted with the Arizona Groundwater Management Act. Goldwater also disagreed with the Town’s position that it had sufficient authority to enact the Ordinance. The Goldwater Institute requested that the Town Council consider rescinding the Ordinance or face litigation by affected property owners.
Adoption of Ordinance No. 2023-930 was part of the Town's ongoing effort over many years to adopt a wide-ranging program of careful and prudent water management. The Town is committed to effective measures of water management now and in the future. In particular, the Town will seek legislative action and otherwise work with interested parties locally and throughout the state to help advance a statewide and/or AMA solution.
Nevertheless, Ordinance No. 2026-988 has been prepared for Town Council consideration as to whether Ordinance No. 2023-930 should be repealed in order to avoid potential long-lasting and divisive litigation (or other actions under Prop 207 or SB1487) that might be brought in relation to the policy Ordinance No. 2023-930 adopted regarding non-subdivision residential development. If the Council determines to consider such repeal, it would begin by voting to read Ordinance No. 2026-988 by title only on two separate occasions, then place the same on final passage. The Ordinance would then be read by the Town Clerk by title only for the first reading. The second reading would occur at a subsequent meeting (currently scheduled for November 12, 2026), at which time the Council would vote on whether to adopt Ordinance No. 2026-988 repealing Ordinance No. 2023-930. If the vote were in favor of adoption, the repeal would become effective 30 days thereafter.
Unfortunately, the Town has since been notified by the Goldwater Institute that it believes Ordinance No. 2023-930 conflicted with the Arizona Groundwater Management Act. Goldwater also disagreed with the Town’s position that it had sufficient authority to enact the Ordinance. The Goldwater Institute requested that the Town Council consider rescinding the Ordinance or face litigation by affected property owners.
Adoption of Ordinance No. 2023-930 was part of the Town's ongoing effort over many years to adopt a wide-ranging program of careful and prudent water management. The Town is committed to effective measures of water management now and in the future. In particular, the Town will seek legislative action and otherwise work with interested parties locally and throughout the state to help advance a statewide and/or AMA solution.
Nevertheless, Ordinance No. 2026-988 has been prepared for Town Council consideration as to whether Ordinance No. 2023-930 should be repealed in order to avoid potential long-lasting and divisive litigation (or other actions under Prop 207 or SB1487) that might be brought in relation to the policy Ordinance No. 2023-930 adopted regarding non-subdivision residential development. If the Council determines to consider such repeal, it would begin by voting to read Ordinance No. 2026-988 by title only on two separate occasions, then place the same on final passage. The Ordinance would then be read by the Town Clerk by title only for the first reading. The second reading would occur at a subsequent meeting (currently scheduled for November 12, 2026), at which time the Council would vote on whether to adopt Ordinance No. 2026-988 repealing Ordinance No. 2023-930. If the vote were in favor of adoption, the repeal would become effective 30 days thereafter.
RECOMMENDED MOTION:
Motion to read Ordinance No. 2026-988 (repealing prior Ordinance No. 2023-930 related to water requirements for non-subdivision residential developments) by title only on two separate occasions, then place the same on final passage, OR Motion not to read Ordinance No. 2026-988 repealing Ordinance No. 2023-930. VOTE.
[if the vote is in favor of reading Ordinance No. 2026-988, the Town Clerk reads the Ordinance by title only for the first reading.]
[if the vote is in favor of reading Ordinance No. 2026-988, the Town Clerk reads the Ordinance by title only for the first reading.]
STAFF RECOMMENDATION:
Staff recommends reading and eventually adopting Ordinance No. 2026-988 repealing prior Ordinance No. 2023-930 related to water requirements for non-subdivision residential development.
FISCAL ANALYSIS:
No direct fiscal impact related to this particular action, but recommended as a means of avoiding future expenditures required for legal or other defenses.