Carefree Truth
Issue #745, May 7, 2019
Lyn's note: The following 2 articles were released this afternoon via C.O.I.N.S. Herbert and I share the Carefree administration's disappointment with how the current Cave Creek administration is handling the transfer of the Carefree Water Service Area. We love both towns, and are saddened by this.)
C.O.I.N.S.
1:25 p.m. Arizona Local Time
Let’s clear the air on water!
Both the Towns of Carefree and Cave Creek entered into a contract over 14 years ago which preserved Carefree’s rights to transfer water accounts in Carefree on the Cave Creek Water distribution system to the Carefree Water Company. In short, the purpose of this agreement was to tie all water resources servicing Carefree citizens together and ensure representation by the very people they elect in this critical community resource. This Agreement is part of an extensive history of Carefree leadership doing the right thing and assisting Cave Creek with their community issues.
The origins of the water systems servicing the Carefree and Cave Creek communities is the legacy of two independent privately owned water companies. Over time, both towns appropriately determined that they needed to control this precious renewable resource to ensure representation of their residents and each community’s economic future.
In 1997, Carefree acquired the Carefree Water Company which serves approximately 80% of Carefree. During Cave Creek’s condemnation of the privately owned Cave Creek Water Company and due to the fact that 20% of Carefree remained within this water utility service area, an Intergovernmental Agreement (“Agreement”) was executed between the communities. This Agreement preserved Carefree’s right to acquire this portion of the Cave Creek water service area which overlapped within the Town of Carefree.
READ MORE HERE
Water Service to Carefree . . . the rest of the story.
More specifically, quoting from the official transcript of the August 1, 2005 Cave Creek Town Council meeting, when this water Agreement was reviewed and unanimously approved by the Cave Creek Town Council, Cave Creek’s Town Attorney, Bill Farrell and their condemnation attorney, Marvin Cohen succinctly stated the following regarding the purpose of this Agreement:
Farrell said, it is important to “have Carefree consent on the acquisition of the (Cave Creek) Water Company” to clear a legal issue regarding the acquisition of the accounts by Cave Creek within Carefree.
Unfortunately, at this time, the leadership within the Town of Cave Creek has chosen to not honor the very purpose of this Agreement, to avoid legal fees and design an orderly acquisition/integration of these accounts into Carefree. In good faith, over one year ago, the leadership in Carefree notified Cave Creek of its intent to acquire these accounts. Many of these Cave Creek leaders also attended public open houses Carefree leaders conducted last spring/summer to discuss the potential acquisition. Furthermore, pursuant to the Agreement, when Carefree requested documentation such as the acquisition appraisal, Cave Creek stated it did not exist. Regardless, Carefree continued to honor the Agreement and provided Cave Creek with an offer pursuant to the Agreement. During this time, Cave Creek's response has been a politically charged, misleading survey and a recent frivolous court filing, in total disregard to the Agreement between each community.
It is important to note that the Cave Creek leadership has always been aware of, agreed to and should have planned for, the separation of these Carefree accounts. Carefree has been open and transparent with Cave Creek leadership regarding their intent and desire to acquire these Carefree accounts. It is Carefree’s expectation, like any party which enters into a contractual arrangement, to work in good faith in the execution of a contract. Carefree has done so and is now placed in the position by the leadership in Cave Creek to vigorously preserve its rights under this Agreement. In preserving Carefree’s rights and upholding the terms of the Agreement, Carefree will aggressively seek to recover all costs associated with implementing this long standing, publicly vetted and approved contract between our communities.
So why does Cave Creek refuse to cooperate, what are they not admitting in their recent misleading public statements?
C.O.I.N.S.
2:05 p.m. Arizona Local Time
Carefree Disappointed by Cave Creek’s publishing of the Misleading “Results” of its Manipulative Survey
The Town of Carefree is disappointed with the Cave Creek town government because it is now promoting the results from its manipulative survey as if they were accurate research findings. The purpose of this study, leading questions following a series of misstatements cloaked under the mantle of research, was designed to try to generate resentment within the Carefree community against the acquisition from Cave Creek of the remainder of the Carefree water accounts.
Leading questions and misinformation masquerading as research only seek to serve the political ambitions of Cave Creek. While valid research can provide meaningful insights, this “Carefree Survey” attempted to gain answers from Carefree residents without providing them the balance of information necessary to make informed decisions. It provided no insight into the reasons supporting Carefree’s drive towards integrating all of their remaining residential and commercial accounts within the Carefree Water Company.
“That our neighboring community of Cave Creek would broadcast such blatantly misleading information is a huge disappointment” said Carefree Mayor Les Peterson. “If Cave Creek spent half as much thought and effort following the agreement as they do attempting to manipulate our citizens or getting out of the agreement, we would be much closer to resolving this situation.”
Cave Creek entered into a binding intergovernmental agreement with Carefree when Cave Creek purchased their water company. This agreement specifically provided for the future incorporation of 20% of Carefree residents, who at that time received their water service from the Cave Creek Water Company, into the Carefree Water Company system. Without this agreement with Carefree, Cave Creek would have been severely hampered in their ability to complete their acquisition. This agreement foresaw the eventuality of Carefree acquiring those water accounts within their boundaries and outlined a process for doing so – a process based upon cooperation and good faith between the two towns, thus eliminating costly litigation.
Despite Cave Creek’s failure to proceed in good faith and their continued obstructive behavior, Carefree will, like any honorable party which willingly enters into a contractual agreement, continue to work in good faith in the contract’s execution. Carefree has done so and will continue to do so, and will utilize all legal means and remedies to protect the long term health, safety and welfare of all of its citizens.
Issue #745, May 7, 2019
Lyn's note: The following 2 articles were released this afternoon via C.O.I.N.S. Herbert and I share the Carefree administration's disappointment with how the current Cave Creek administration is handling the transfer of the Carefree Water Service Area. We love both towns, and are saddened by this.)
C.O.I.N.S.
1:25 p.m. Arizona Local Time
Let’s clear the air on water!
Both the Towns of Carefree and Cave Creek entered into a contract over 14 years ago which preserved Carefree’s rights to transfer water accounts in Carefree on the Cave Creek Water distribution system to the Carefree Water Company. In short, the purpose of this agreement was to tie all water resources servicing Carefree citizens together and ensure representation by the very people they elect in this critical community resource. This Agreement is part of an extensive history of Carefree leadership doing the right thing and assisting Cave Creek with their community issues.
The origins of the water systems servicing the Carefree and Cave Creek communities is the legacy of two independent privately owned water companies. Over time, both towns appropriately determined that they needed to control this precious renewable resource to ensure representation of their residents and each community’s economic future.
In 1997, Carefree acquired the Carefree Water Company which serves approximately 80% of Carefree. During Cave Creek’s condemnation of the privately owned Cave Creek Water Company and due to the fact that 20% of Carefree remained within this water utility service area, an Intergovernmental Agreement (“Agreement”) was executed between the communities. This Agreement preserved Carefree’s right to acquire this portion of the Cave Creek water service area which overlapped within the Town of Carefree.
READ MORE HERE
Water Service to Carefree . . . the rest of the story.
More specifically, quoting from the official transcript of the August 1, 2005 Cave Creek Town Council meeting, when this water Agreement was reviewed and unanimously approved by the Cave Creek Town Council, Cave Creek’s Town Attorney, Bill Farrell and their condemnation attorney, Marvin Cohen succinctly stated the following regarding the purpose of this Agreement:
Farrell said, it is important to “have Carefree consent on the acquisition of the (Cave Creek) Water Company” to clear a legal issue regarding the acquisition of the accounts by Cave Creek within Carefree.
- Cohen stated that the Agreement, “is an attempt to set out some assurances among both communities that in the event that the citizens of Carefree wished to be governed by their utility . . . . an amicable method could be agreed to”.
- Farrell stated, that this agreement was an attempt to say that, “if we can get together and agree to on price it would be fine. If one side or the other can’t agree on a price then we will attempt to do this in the most civil of manners rather than having a litigious event occur between the two communities . . . including the American Arbitration Association as a final determiner”.
- Farrell further emphasized that, “this was the quid pro quo for the written consent to start to get over those hurdles about whether or not the Town of Carefree would have the future rights for the integration of their systems”.
- Finally, Cave Creek Vice Mayor Mozilo summarized the discussion and stated the agreement gives Carefree, “a right to obtain 600 customers when they believe it necessary through friendly condemnation”.
Unfortunately, at this time, the leadership within the Town of Cave Creek has chosen to not honor the very purpose of this Agreement, to avoid legal fees and design an orderly acquisition/integration of these accounts into Carefree. In good faith, over one year ago, the leadership in Carefree notified Cave Creek of its intent to acquire these accounts. Many of these Cave Creek leaders also attended public open houses Carefree leaders conducted last spring/summer to discuss the potential acquisition. Furthermore, pursuant to the Agreement, when Carefree requested documentation such as the acquisition appraisal, Cave Creek stated it did not exist. Regardless, Carefree continued to honor the Agreement and provided Cave Creek with an offer pursuant to the Agreement. During this time, Cave Creek's response has been a politically charged, misleading survey and a recent frivolous court filing, in total disregard to the Agreement between each community.
It is important to note that the Cave Creek leadership has always been aware of, agreed to and should have planned for, the separation of these Carefree accounts. Carefree has been open and transparent with Cave Creek leadership regarding their intent and desire to acquire these Carefree accounts. It is Carefree’s expectation, like any party which enters into a contractual arrangement, to work in good faith in the execution of a contract. Carefree has done so and is now placed in the position by the leadership in Cave Creek to vigorously preserve its rights under this Agreement. In preserving Carefree’s rights and upholding the terms of the Agreement, Carefree will aggressively seek to recover all costs associated with implementing this long standing, publicly vetted and approved contract between our communities.
So why does Cave Creek refuse to cooperate, what are they not admitting in their recent misleading public statements?
- For existing Cave Creek Water Company customers please review the Cave Creek public record on needed capital investments/expenses which have not been made. Since their acquisition over 12 years ago, Cave Creek has not adequately reinvested in a deteriorating water system. Therefore, they must now play catch up. In doing so Cave Creek customers face significant future rate increases to pay for these costs.
- For existing Carefree Water Company customers, Carefree relies on sales tax to pay for services such as street maintenance, the master fire service contract and MCSO contract. As these costs rise, the development of the remaining undeveloped commercial property within Carefree is critical to provide needed funds to support Town services. The remaining undeveloped commercial property within the Town which has the greatest capacity to generate revenue and offset the need for a property tax is located at Carefree Highway and Cave Creek Road. The development of this property is being impeded by Cave Creek’s mismanagement of its water resources. The Cave Creek public record shows that Cave Creek gave away over 400 acre feet of water to Desert Hills and has refused to issue a will serve letter for these commercially zoned properties in Carefree as a result of Cave Creek’s mismanagement. Carefree cannot afford to stand by and permit Cave Creek to control Carefree’s economic future.
- Paying for multiple intersection improvements in Cave Creek along Carefree Highway,
- Paying for a study to plan a trail in Cave Creek up Black Mountain,
- Paying $100,000 to seed the preservation efforts of Spur Cross Ranch,
- Saving Cave Creek approximately $150,000 annually through the consolidation of the Municipal Court, and
- Finally, assisting in the acquisition of the Cave Creek Water Company by supporting Cave Creek’s original condemnation action with the caveat that Carefree preserves the right to acquire the portion of the accounts/distribution system in Carefree to tie its residents together under one company that represents the interests of the Carefree community.
C.O.I.N.S.
2:05 p.m. Arizona Local Time
Carefree Disappointed by Cave Creek’s publishing of the Misleading “Results” of its Manipulative Survey
The Town of Carefree is disappointed with the Cave Creek town government because it is now promoting the results from its manipulative survey as if they were accurate research findings. The purpose of this study, leading questions following a series of misstatements cloaked under the mantle of research, was designed to try to generate resentment within the Carefree community against the acquisition from Cave Creek of the remainder of the Carefree water accounts.
Leading questions and misinformation masquerading as research only seek to serve the political ambitions of Cave Creek. While valid research can provide meaningful insights, this “Carefree Survey” attempted to gain answers from Carefree residents without providing them the balance of information necessary to make informed decisions. It provided no insight into the reasons supporting Carefree’s drive towards integrating all of their remaining residential and commercial accounts within the Carefree Water Company.
“That our neighboring community of Cave Creek would broadcast such blatantly misleading information is a huge disappointment” said Carefree Mayor Les Peterson. “If Cave Creek spent half as much thought and effort following the agreement as they do attempting to manipulate our citizens or getting out of the agreement, we would be much closer to resolving this situation.”
Cave Creek entered into a binding intergovernmental agreement with Carefree when Cave Creek purchased their water company. This agreement specifically provided for the future incorporation of 20% of Carefree residents, who at that time received their water service from the Cave Creek Water Company, into the Carefree Water Company system. Without this agreement with Carefree, Cave Creek would have been severely hampered in their ability to complete their acquisition. This agreement foresaw the eventuality of Carefree acquiring those water accounts within their boundaries and outlined a process for doing so – a process based upon cooperation and good faith between the two towns, thus eliminating costly litigation.
Despite Cave Creek’s failure to proceed in good faith and their continued obstructive behavior, Carefree will, like any honorable party which willingly enters into a contractual agreement, continue to work in good faith in the contract’s execution. Carefree has done so and will continue to do so, and will utilize all legal means and remedies to protect the long term health, safety and welfare of all of its citizens.