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      • CAREFREE: Raftelis Rebuttal Report - 7/24/20
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  • LETTERS FROM READERS #2
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  • TOWN MEETING AGENDA
    • Workshop to discuss Fiscal Year 2023-2024 budget 5/25/23
    • Workshop to discuss Fiscal Year 2023-2024 budget
    • Carefree Meeting Agenda: 4/4/23
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    • Carefree Meeting Agenda: Council visioning workshop 2/3/23
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    • Carefree Meeting Agenda: 10/25/22 >
      • 10/4/22 Town Meeting Pics and Slides
      • Carefree Meeting Agenda: Council visioning workshop
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    • 2/9/21 CAREFREE UTILITIES COMMUNITY FACILITIES DISTRICT
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    • Carefree Meeting Agenda: 12/1/20
    • 11/18/20 Swearing In and Strategic Meeting
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    • 10/13/20 STRATEGIC PLANNING WORKSHOP
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                             Carefree Truth
                   Issue #646, May 18, 2018



Mayor Les Peterson explained that a study to be performed by Coe & Van Loo, LLC for the evaluation of the water system serving the southwest portion of Carefree was under consideration.  A water committee consisting of Greg Crossman, Gary Neiss, Councilman Mike Krahe, Vice Mayor John Crane, Tom Cross, and he, had been working on the water issues affecting the parts of Carefree that are served by the Cave Creek Water Company.  He turned the meeting over to Greg Crossman, the Town Engineer and General Manager of the Carefree Water Company.


Mr Crossman informed the Council that the Town is seeking a water evaluation and financial assessment from Coe & Van Loo (CVL).  Approximately 75-80% of Carefree is serviced by the Carefree Water Company (CWC), shown in blue outlines on the slide.  The rest of Carefree is serviced by the Cave Creek Water Company (CCWC), shown in the red circles.  Because there are 3 distinct geographic locations, they have been designated as Neighborhood A in southwest Carefree, Neighborhood B in central west Carefree, and Neighborhood C in northwest Carefree.

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Historically, CWC and CCWC were privately owned and governed by the Arizona Corporation Commission (ACC), which set the water service boundaries.  Subsequently, both water companies were acquired by the respective municipalities, but the service areas stayed the same.


In mid-January, Requests For Proposals (RFPs) were issued.  They sought consultants with a multi disciplinary team led by an engineering firm to examine the feasibility of CWC acquiring those areas serviced by CCWC.  The proposals were due in February and interviews were held in March, at which time CVL was selected. 



The need for the study arose because of concerns expressed by the Carefree citizens who are members of the Water Advisory Committee (WAC) for CCWC.  The areas of concern involve CCWC's water supply, the amount of their water rights, and their portfolio.  The WAC questioned CCWC's ability to supply current and future customers and concerns about the reliability of CCWC's system.  CCWC relies solely on Central Arizona Project (CAP) water, which is pumped about 12 miles up Cave Creek Road through a single pipeline by a series of booster pump stations to their surface water treatment plant.  Should a major outage occur along that system, it would impact the ability to deliver water.  There is also a concern about the ability to service areas of potential economic growth in Carefree.


In early discussions with CLV it became evident that Carefree didn't have the budget to do the scope and type of study needed for all 3 areas, so the decision was made to focus on Neighborhood A in the initial phase of the study, then expand it into the other 2 areas in additional phases.  Neighborhood A was focused on because over 60% of the homes in Carefree that are serviced by CCWC are located there.  It is the most challenging area to service due to the distance from CWC's system and the hilly terrain, so will involve the highest cost.  It also contains a future economic core.


The consultant's scope of work consists of determining the value and condition of the infrastructure in Neighborhood A and the remaining useful life of that infrastructure, the cost for CWC to serve those residences and potential businesses, the costs to disconnect the area from CCWC and reconnect it to CWC, and determining the financing mechanism and rate structure for existing and future CWC customers.


The contracted consulting firm would be CVL.  They would use subcontractors Burgess & Niple to perform the condition assessment, Controlled Energy Engineering (SCADA) to make sure the electrical systems between the two water companies can be meshed, and Willden for the financial assessment.  The contract amount is $187, 710 and the contract term is for 300 days (approximately 10 months).


Councilwoman Cheryl Kroyer asked if the water could just be allowed to flow up to Neighborhoods B & C, or if it would require another engineering study for each.  Mr. Crossman explained that what applies to Neighborhood A doesn't necessarily apply to Neighborhoods B & C due to their different geographical locations.  But since B & C are closer to the existing CWC system they will be easier to serve and it will take less effort to determine what is needed.


Councilman Gene Orrico asked if that was a Not to Exceed number.  Mr. Crossman replied yes, but that unanticipated issues could arise that would increase the cost.  Mr. Orrico asked if there is a penalty if the study is not completed within 300 days.  Mr. Crossman said there is not.  Councilman Mike Krahe asked if the study might be finished sooner than 300 days.  Mr. Crossman said there is a good possibility.  Dr. Krahe asked if the cost is exceeded, does it comes back to the Council for approval.  Mr. Crossman replied that it can increase 10% with administrative approval, but beyond that it would come before the Council.  Dr. Krahe asked how many times it could increase by 10% with only administrative approval, and Mr. Crossman assured him that it is a one time increase with administrative approval, after which it would come back to the Council.


Ms. Kroyer asked if CVL was chosen because it was the cheapest or because it was felt that they brought more to the table.  Mr. Crossman explained that State law requires that they be qualifications based.  If an agreement cannot be reached for fees, then municipalities can go on to the next best qualified firm.  An agreement was reached with CVL.


Vice Mayor John Crane asked where the money will come from in the budget.  Gary Neiss explained that a planned culvert in the Capital Improvement section has not been addressed in this fiscal year, and the money will come from that line item in the budget.  The water situation has a more regional impact than the culvert.  The Vice Mayor noticed that the contract included CVL's ability to consult with lawyers and asked how the Town could control the amount of dialogue and those costs.  Mr. Neiss said that was a great question. The attorney will be hired separately and will work for the Town.  Any communications will come to the Town first, before being passed onto the attorney.  Vice Mayor Crane's last question involved reimbursable expenses.  Mr. Crossman said they are included in the contract for a lump sum of $3000.

https://vimeo.com/265475997


Lyn Hitchon   



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