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"Thomas Jefferson said a democracy is dependent on an informed citizenry. I don't care whether it sounds corny or not.  It's the truth." -Jim Lehrer
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Carefree Truth
Issue #907, March 19, 2021

Item #1 was a joint meeting between the Carefree Town Council and the Utilities Community Facilities District (UCFD) Board of Directors was held to discuss authorizing the Mayor to execute an assignment to the Town of Carefree Utilities Community Facilities District of the Intergovernmental Agreement (IGA) between the Town of Carefree and the Town of Cave Creek for the acquisition of the Carefree Service Area (CSA) water system from the Town of Cave Creek.
 
 
Town Attorney Mike Wright explained that it is a one page document, a very simple assignment.  It assigns all the rights of the Town of Carefree in the IGA to the UCFD.  The reason for this is that the two parties to the IGA are the Town of Carefree and the Town of Cave Creek.  The UCFD is not a party to the IGA.  There is a provision that allows for the termination of the IGA once certain portions get accomplished.  The Town of Carefree is not a party to the settlement agreement.  The UCFD is not a party to the IGA.  In order to solve those legal hurdles, the document assigns all its rights in the IGA to the UCFD, which is party to the settlement agreement with the Town of Cave Creek.
 
The motion to transfer the rights passed unanimously.
 
 
Item #2 discussed authorizing the UCFD Chairman of the Board to execute the settlement agreement between the UCFD and the Town of Cave Creek.  Mayor Peterson explained that, in addition to the right of condemnation, Carefree had the contractual right through the IGA to take over the water service in the CSA.  The dispute was over the valuation of the assets in the water service.  Carefree made offers based on its evaluation and none were accepted by Cave Creek.  As called for in the IGA, this led to arbitration by the American Arbitration Association (AAA).  This allowed an outside panel of experts to determine the value of the assets in the CSA.  Both Towns reviewed the qualifications of over 35 candidates from AAA.  3 were approved by both Towns and unanimously selected  to be the members of the 3 person panel.  Mayor Peterson read a brief summary of the qualifications of each member, without specifying their names.  The qualifications of each were pages long. 

 
 
"Chairman: Commercialarbitrator with AAA for 28 years, serving on its Commercial Construction Panel and large and complex cases. Rated as a Southwest Super Lawyer, member of Arizona’s Finest attorneys.  Civil claims attorney for 36 years, focus upon commercial breach of contract claims. Has served as a mediator, receiver to take over the affairs of a law firm embroiled in a dispute among its partners and as a special master of an LLC company dissolution.
Arbitrator #2: PhD, Fulbright scholar.  Deputy Maricopa County Attorney, 4 years, Judge, Maricopa County Superior Court, 9 years, Judge, Court of Appeals 13 years
Arbitrator #3: AAA, in conjunction with lawyers who handle large complex disputes, named him to the AAA Master Mediator Panel for Construction disputes, utilizing a rating committee made up of advocates and in-house counsel representing clients in complex, high stakes construction disputes. 43 years of experience in construction law issues. He worked on hundreds of cases as a mediator, arbitrator and litigator. Licensed to practice before the Tenth Circuit Court of Appeals and the U.S. Supreme Court.
All three are extremely experienced."

 
 
All evidenced involvement in all the issues, thoroughness, and dedication. There were 6 full days of meetings where expert witnesses were called, cross examinations were held, and questions were asked.  They read all the legal cases which were cited 3 times and all the other materials twice.  Thousands of pages were reviewed.  These were not novices.  They were the best that could be found.  Both Towns put their trust in these arbitrators to determine a fair and just settlement.  They rendered their decision after extensive fact finding and litigation.
 
 
Mayor Peterson said both Towns need to find a way to work better together in the future.  They can't let it get to this again.  It was enormously time consuming and expensive.  It prevented the Councils and staff members from working on other pertinent issues.  Carefree and Cave Creek have much in common.  They are physically adjacent, share a joint municipal court, are 2 of the few municipalities in the state  with no extensive level of fire coverage, and they share  police coverage.  They should be marketing together.  Working together would be beneficial to the towns and to their residents.  Carefree would like to do this.  It hopes to work collectively with Cave Creek to finish this project and start a new beginning.
 
 
Vice Mayor John Crane said, "The settlement agreement was not trivial and was very complex.  If Carefree and Cave Creek can come together on that and sign it, it bodes well for what we can do moving forward.  We can certainly learn from each other.  I am looking forward to a strong working relationship."
 
 
Council member Mike Krahe echoed Mayor Peterson's thoughts, hoping the 2 Towns could work together in the future.  His family moved here 12 years ago.  There was always ongoing tension between the towns, and he never understood why.  If no attempt is made to mend that rift, "we will continue to get what we've always gotten".  He really hoped that they will move forward together and try to find a path to work collectively for the interests of both towns.
 
 
The motion to approve the settlement agreement passed unanimously.  The Mayor thanked all who were involved in this effort on both sides.  He said they learned a lot.  He specifically thanked Carefree's attorneys, staff, Council members, and the UCFD.  It was a joint effort that was very trying and time consuming, but productive effort.  "But now let's focus our efforts on moving ahead and competing this project."  He again thanked everyone.
 
https://vimeo.com/524630977
 
 
Lyn Hitchon
 
 
Prepared by Carefree Truth
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