Cave Creek proudly serves customers throughout the Northeast Valley. Many of our customers are within the boundaries Cave Creek, however, the town serves about 500 customers in Carefree. This arrangement has been successful for about 20 years. Now Carefree wants to undertake a multi-million-dollar taxpayer funded effort to break up the water service delivery system. Carefree's hostile takeover of parts of the Cave Creek water system will end up costing both towns significant amounts of money. Carefree residents could be on the hook for $10 million or more to break up the water system and pay Cave Creek. All that money yet no net change in the quality of water delivered to residents of either Carefree or Cave Creek. It is time for Carefree to end this expensive folly before millions of taxpayer dollars are wasted in this fight.
Carefree Water Truth
Carefree Water Truth is in no way associated with Carefree Truth. This comes from a source that seems to have piggy backed on our name in an attempt to spread further misinformation, attempting to use our credibility.
GET THE TRUTH ABOUT CAREFREE WATER
Cave Creek files motion to dismiss condemnation actionPublished on May 2, 2019
June 16, 2019
CAVE CREEK – Today the Town of Cave Creek filed a motion in Maricopa County Superior Court requesting the dismissal of the condemnation action filed by Carefree to take over a portion of the Cave Creek water system. This portion of the water system serves more than 500 Cave Creek customers who reside within the Town of Carefree.
Arizona law requires all governments to make a good faith offer and provide a supporting appraisal to the property owner prior to filing a condemnation action. Carefree failed to comply with either of those requirements.
Cave Creek Mayor Ernie Bunch said, “While Carefree may have the right to buy a portion of our system, they still have to follow the law. This take over action is not in the best interest of our customers and we will continue to exercise our constitutional rights to protect them.” Joe Conner, a national utility condemnation lawyer who has been hired to represent Cave Creek said, “Years ago the two towns entered into a contract that contemplated this type of action. Unfortunately, Carefree has neglected to follow the very basic requirements of Arizona law which forms the basis of our motion.”
Mayor Bunch said, “Carefree’s move to physically separate a major portion of our system is totally unnecessary and a waste of taxpayer funds. At the same time, Carefree has not revealed how they will pay for the system or more importantly who will pay. One thing is for sure, our customers in Carefree will face higher water rates to pay for the cost of the system, legal fees and the expense of separating a portion of Cave Creek’s service area from our fully integrated utility. Regardless of any action taken by Carefree, we will continue to provide safe, reliable water service to all of our customers at reasonable rates.”
The case number is CV-2019-052592
Carefree residents concerned with water take over
Published on May 6, 2019
June 16, 2019 CAVE CREEK – Carefree residents are concerned about the costs associated to take over a portion of the Cave Creek water system that serves more than 500 Cave Creek customers who reside within the Town of Carefree, a new survey finds.
The survey, conducted April 18-22, contacted Carefree residents who receive their water from either Cave Creek or Carefree. While a significant number of respondents identified water service as the number one issue facing the town, once presented with information, two-thirds of respondents were less likely to support taking over of a portion of the Cave Creek water system.
71 percent of respondents said that if a takeover by Carefree would increase water rates or taxes, they would be less likely to support the move.
And 67 percent of respondents said they would be less likely to support the purchase of a portion of the Cave Creek water system if it meant the service would remain the same, but the costs would increase.
“The survey shows the vast majority of Carefree residents have concerns about increased taxes or the rising costs for water if Carefree follows through with its plan to take over part of the Cave Creek water system,” said Joe Conner, a national utility condemnation lawyer who has been hired to represent Cave Creek. “Carefree should listen to its constituents and end this expensive take over attempt.”
Carefree has sued Cave Creek to take over the water service for more than 500 customers. The move would cost Carefree residents millions of dollars to compensate Cave Creek for the value of the system.
Published on May 6, 2019
June 16, 2019 CAVE CREEK – Carefree residents are concerned about the costs associated to take over a portion of the Cave Creek water system that serves more than 500 Cave Creek customers who reside within the Town of Carefree, a new survey finds.
The survey, conducted April 18-22, contacted Carefree residents who receive their water from either Cave Creek or Carefree. While a significant number of respondents identified water service as the number one issue facing the town, once presented with information, two-thirds of respondents were less likely to support taking over of a portion of the Cave Creek water system.
71 percent of respondents said that if a takeover by Carefree would increase water rates or taxes, they would be less likely to support the move.
And 67 percent of respondents said they would be less likely to support the purchase of a portion of the Cave Creek water system if it meant the service would remain the same, but the costs would increase.
“The survey shows the vast majority of Carefree residents have concerns about increased taxes or the rising costs for water if Carefree follows through with its plan to take over part of the Cave Creek water system,” said Joe Conner, a national utility condemnation lawyer who has been hired to represent Cave Creek. “Carefree should listen to its constituents and end this expensive take over attempt.”
Carefree has sued Cave Creek to take over the water service for more than 500 customers. The move would cost Carefree residents millions of dollars to compensate Cave Creek for the value of the system.
2 Arizona towns are locked in dispute over who should provide water to residents
Published on May 26, 2019June 17, 2019
By Lorraine Longhi, Arizona Republic
Tony Geiger has lived in Carefree for almost 20 years but gets his water from the neighboring town of Cave Creek.
When Geiger joined the Cave Creek Water Advisory Committee in 2013, he noticed problems. The system was small, unreliable and had not been maintained properly, he said.
So he told Carefree about his concerns.
The concerns prompted Carefree, on the northeastern edge of metro Phoenix, to make good on a 2005 agreement with Cave Creek. The deal allowed Cave Creek to provide water to about 20 percent of Carefree’s residents, but it also outlined how Carefree could take over that role.
Carefree sought to do just that in January, filing a condemnation notice in Maricopa County Superior Court to acquire the portion of Cave Creek’s water distribution system that serves its residents.
But Cave Creek is fighting back, saying Carefree went about its takeover in the wrong way.
“One thing is for sure, our customers in Carefree will face higher water rates to pay for the cost of the system, legal fees and the expense of separating a portion of Cave Creek’s service area from our fully integrated utility,” Cave Creek Mayor Ernie Bunch said in a released statement.
Cave Creek has pushed to dismiss the takeover and touted a survey they say shows Carefree water customers on their side. The survey told the customers their water rates would go up, something Carefree officials say isn’t yet known.
Why are they breaking up?
Geiger told The Arizona Republic that he knew Cave Creek’s water system was small but had never experienced major issues or water outages. It wasn’t until he joined the Water Advisory Committee that he said he became concerned the system wasn’t properly maintained, that Cave Creek relies on a small, unreliable pipeline of Central Arizona Project water and finances.
Carefree residents have voiced concerns to Cave Creek’s water committee over the years to make sure the town properly manages their water resources, but those complaints have gone unheard, according to Gary Neiss, Carefree’s town administrator.
Concerns have circled around fire hydrants that have not been properly maintained, Neiss told The Republic.
Carefree contracts with Rural Metro Fire to inspect its hydrants, including those managed by the Cave Creek water system. The fire company has reportedly been told by Cave Creek not to open certain fire hydrants for inspections, Neiss said.
Cave Creek officials say fire hydrants are in working order. Cave Creek has conducted 135 inspections on fire hydrants in Carefree so far this year. The only hydrant reported out of service was at Sunset Trail and Carefree Highway and it was repaired in five days, according to an inspections report.
But several hydrants cannot be serviced because of broken valves, and while the inspections do occur, corrective action has not been taken in several situations, Neiss said.
“Carefree is worried about liability to their citizens and community,” Neiss said. “This is the culmination of a lot of different factors, including a lack of representation and Cave Creek not living up to its obligation.”
Agreeing to break up
Cave Creek provides water to 2,795 customers in Cave Creek and Carefree based on the 2005 agreement. Of those, 536 are Carefree residents.
In the deal, the neighboring towns agreed that Carefree could one day acquire its portion of Cave Creek’s water system through a condemnation, followed by a 120-day negotiating period to determine the value of the system.
Carefree has now come to collect.
Cave Creek says Carefree violated Arizona law by not making a good faith offer and providing an appraisal before filing the condemnation action.
“While Carefree may have the right to buy a portion of our system, they still have to follow the law,” Cave Creek’s Mayor Bunch said in his released statement.
But Michael Wright, an attorney representing Carefree, said nothing in the agreement, or state law, requires Carefree to make an offer on the system before filing the condemnation.
“These guys in Cave Creek are totally off the mark,” Wright said.
Carefree filed the condemnation action on Jan. 29. Under the 120-day negotiation period laid out in the agreement, the towns have until May 29 to negotiate a purchase offer.
If the two towns cannot agree on compensation, Carefree will seek arbitration. If the matter is determined through arbitration, Carefree will be entitled to the system six months after their payment to Cave Creek, according to the agreement.
What will Carefree pay?
Carefree began requesting data from Cave Creek last winter to assess the value of the system, but Cave Creek has refused to provide it, according to Neiss.
Carefree looks to acquire approximately 20 percent of the current water system, minus some tanks and pumps. The town, earlier this month, offered Cave Creek just more than $2 million to acquire the system, according to Wright.
Cave Creek purchased the full system for $19.8 million in 2005. Bunch said the town has invested millions more to upgrade the system to provide quality service. “We didn’t buy it and sit on our hands,” he said.
But Cave Creek overpaid for its system at the time, Geiger said.
The agreement between the towns says that compensation must include the cost of physically separating the system, and be based on what Cave Creek paid for it.
Carefree has conveniently separated portions of the system which they are not acquiring and are only trying to attribute value to the distribution system, according to Joe Conner, an attorney representing Cave Creek.
“It is not a good faith offer and does not follow Arizona law on what just compensation should be in a condemnation case,” Conner told The Republic.
Neiss said Carefree does not need to buy into the CAP line or treatment facilities for the system, as they will rely on Scottsdale for delivery of their water.
Higher water costs for residents?
Cave Creek’s mayor has raised concerns that turning the water system over to Carefree will lead to higher water rates for Carefree water customers.
A survey commissioned by Cave Creek last month asked Carefree residents to weigh in on the most pressing issues in the town. Approximately 140 residents were surveyed, according to Conner.
The survey told residents that an acquisition of the system would cost more than $10 million, and increase water rates and taxes.
Carefree leaders say that’s ridiculous.
“The survey was misleading, dishonest and stated things that were not true at all,” Wright said. “Cave Creek is doing everything they can in the public arena, this survey for instance, to get out from underneath this agreement.”
Neiss said the town is still negotiating and it’s too soon to tell if rates will increase, but he said the town would work to mitigate that.
“Nobody wants to pay more for anything, but there’s no more important resource in the desert Southwest than water,” he said. “It’s an investment in our future, it’s an investment in our community, and it’s the most important thing we can provide to our residents.”
Published on May 26, 2019June 17, 2019
By Lorraine Longhi, Arizona Republic
Tony Geiger has lived in Carefree for almost 20 years but gets his water from the neighboring town of Cave Creek.
When Geiger joined the Cave Creek Water Advisory Committee in 2013, he noticed problems. The system was small, unreliable and had not been maintained properly, he said.
So he told Carefree about his concerns.
The concerns prompted Carefree, on the northeastern edge of metro Phoenix, to make good on a 2005 agreement with Cave Creek. The deal allowed Cave Creek to provide water to about 20 percent of Carefree’s residents, but it also outlined how Carefree could take over that role.
Carefree sought to do just that in January, filing a condemnation notice in Maricopa County Superior Court to acquire the portion of Cave Creek’s water distribution system that serves its residents.
But Cave Creek is fighting back, saying Carefree went about its takeover in the wrong way.
“One thing is for sure, our customers in Carefree will face higher water rates to pay for the cost of the system, legal fees and the expense of separating a portion of Cave Creek’s service area from our fully integrated utility,” Cave Creek Mayor Ernie Bunch said in a released statement.
Cave Creek has pushed to dismiss the takeover and touted a survey they say shows Carefree water customers on their side. The survey told the customers their water rates would go up, something Carefree officials say isn’t yet known.
Why are they breaking up?
Geiger told The Arizona Republic that he knew Cave Creek’s water system was small but had never experienced major issues or water outages. It wasn’t until he joined the Water Advisory Committee that he said he became concerned the system wasn’t properly maintained, that Cave Creek relies on a small, unreliable pipeline of Central Arizona Project water and finances.
Carefree residents have voiced concerns to Cave Creek’s water committee over the years to make sure the town properly manages their water resources, but those complaints have gone unheard, according to Gary Neiss, Carefree’s town administrator.
Concerns have circled around fire hydrants that have not been properly maintained, Neiss told The Republic.
Carefree contracts with Rural Metro Fire to inspect its hydrants, including those managed by the Cave Creek water system. The fire company has reportedly been told by Cave Creek not to open certain fire hydrants for inspections, Neiss said.
Cave Creek officials say fire hydrants are in working order. Cave Creek has conducted 135 inspections on fire hydrants in Carefree so far this year. The only hydrant reported out of service was at Sunset Trail and Carefree Highway and it was repaired in five days, according to an inspections report.
But several hydrants cannot be serviced because of broken valves, and while the inspections do occur, corrective action has not been taken in several situations, Neiss said.
“Carefree is worried about liability to their citizens and community,” Neiss said. “This is the culmination of a lot of different factors, including a lack of representation and Cave Creek not living up to its obligation.”
Agreeing to break up
Cave Creek provides water to 2,795 customers in Cave Creek and Carefree based on the 2005 agreement. Of those, 536 are Carefree residents.
In the deal, the neighboring towns agreed that Carefree could one day acquire its portion of Cave Creek’s water system through a condemnation, followed by a 120-day negotiating period to determine the value of the system.
Carefree has now come to collect.
Cave Creek says Carefree violated Arizona law by not making a good faith offer and providing an appraisal before filing the condemnation action.
“While Carefree may have the right to buy a portion of our system, they still have to follow the law,” Cave Creek’s Mayor Bunch said in his released statement.
But Michael Wright, an attorney representing Carefree, said nothing in the agreement, or state law, requires Carefree to make an offer on the system before filing the condemnation.
“These guys in Cave Creek are totally off the mark,” Wright said.
Carefree filed the condemnation action on Jan. 29. Under the 120-day negotiation period laid out in the agreement, the towns have until May 29 to negotiate a purchase offer.
If the two towns cannot agree on compensation, Carefree will seek arbitration. If the matter is determined through arbitration, Carefree will be entitled to the system six months after their payment to Cave Creek, according to the agreement.
What will Carefree pay?
Carefree began requesting data from Cave Creek last winter to assess the value of the system, but Cave Creek has refused to provide it, according to Neiss.
Carefree looks to acquire approximately 20 percent of the current water system, minus some tanks and pumps. The town, earlier this month, offered Cave Creek just more than $2 million to acquire the system, according to Wright.
Cave Creek purchased the full system for $19.8 million in 2005. Bunch said the town has invested millions more to upgrade the system to provide quality service. “We didn’t buy it and sit on our hands,” he said.
But Cave Creek overpaid for its system at the time, Geiger said.
The agreement between the towns says that compensation must include the cost of physically separating the system, and be based on what Cave Creek paid for it.
Carefree has conveniently separated portions of the system which they are not acquiring and are only trying to attribute value to the distribution system, according to Joe Conner, an attorney representing Cave Creek.
“It is not a good faith offer and does not follow Arizona law on what just compensation should be in a condemnation case,” Conner told The Republic.
Neiss said Carefree does not need to buy into the CAP line or treatment facilities for the system, as they will rely on Scottsdale for delivery of their water.
Higher water costs for residents?
Cave Creek’s mayor has raised concerns that turning the water system over to Carefree will lead to higher water rates for Carefree water customers.
A survey commissioned by Cave Creek last month asked Carefree residents to weigh in on the most pressing issues in the town. Approximately 140 residents were surveyed, according to Conner.
The survey told residents that an acquisition of the system would cost more than $10 million, and increase water rates and taxes.
Carefree leaders say that’s ridiculous.
“The survey was misleading, dishonest and stated things that were not true at all,” Wright said. “Cave Creek is doing everything they can in the public arena, this survey for instance, to get out from underneath this agreement.”
Neiss said the town is still negotiating and it’s too soon to tell if rates will increase, but he said the town would work to mitigate that.
“Nobody wants to pay more for anything, but there’s no more important resource in the desert Southwest than water,” he said. “It’s an investment in our future, it’s an investment in our community, and it’s the most important thing we can provide to our residents.”
Above: Cave Creek Misinformation
Below: Carefree Factual Information
Below: Carefree Factual Information
Water informational meeting: August, 2018
Carefree Truth #669: Water informational meeting, Mayor Les Peterson, pt. 1 of 5: 7/9/18
http://carefreetruth2.com/carefree-truth-669.html
Carefree Truth #670: Water informational meeting, Lloyd Meyer, pt. 2 of 5: 7/9/18
http://carefreetruth2.com/carefree-truth-670.html
Carefree Truth #671: Water informational meeting, Tony Geiger, pt. 3 of 5: 7/9/18
http://carefreetruth2.com/carefree-truth-671.html
Carefree Truth #672: Water informational meeting, Mayor Peterson & Gary Neiss, pt. 4 of 5: 7/9/18
http://carefreetruth2.com/carefree-truth-672.html
Carefree Truth #673: Water informational meeting, Q & A, pt. 5A of 5: 7/9/18
http://carefreetruth2.com/carefree-truth-673.html
Carefree Truth #674: Water informational meeting, Q & A, pt. 5B of 5: 7/9/18
http://carefreetruth2.com/carefree-truth-674.html
Carefree Truth #675: Water informational meeting, Q & A, pt. 5C of 5: 7/9/18
http://carefreetruth2.com/carefree-truth-675.html
Carefree Truth # 733: Drought update, AZ Republic: 3/18/19
http://carefreetruth2.com/carefree-truth-733.html
Carefree Residents Alert
From the Office of Mayor Les Peterson
A special interest entity NOT associated with the Town of Carefree is currently conducting a telephone survey. This dark money/special interest group survey is intended to mislead Carefree residents regarding the current water negotiations under way with Cave Creek to consolidate water service to all accounts in Carefree within the Carefree Water Company.
Misinformation in the survey is stated as if it were factual information in an attempt to create false perceptions under the guise of “research.” Many Carefree residents have contacted the Town infuriated over the misleading questions.
The people conducting this “research” have refused to identify the participants behind this survey. As a result, the Town is investigating who and how this survey was authorized and funded so Carefree residents can be informed about the sponsor’s intent. Be alert to this situation should the people conducting this survey contact you or someone in your home.
What is the Real Situation Regarding Water Service for all Carefree Residents?
Carefree’s intent is clear: to secure a high quality, reliable water resource for ALL Carefree residents and businesses to ensure high quality of life services at the lowest possible costs to all.
There is no more precious resource in the arid desert southwest than water. It brings life to the desert and economic life to a community. Carefree made a concerted effort to protect this precious resource by purchasing the Carefree Water Company, which currently serves approximately ¾ of Carefree. In addition, Carefree has an enforceable Agreement with the Town of Cave Creek which enables Carefree to purchase the remaining balance of the water accounts in Carefree which are currently serviced by the Cave Creek Water Company system.
Why is it critical for Carefree to exercise its rights to acquire these water accounts at this time so that ALL Carefree residents are under the control of one water utility?
1. Representation:
Every Carefree resident should have representation on this critical community resource by the people they directly elect. Under the current approach, Carefree citizens receiving water service from the Cave Creek Water Company system do not have this requisite representation. This deprives them of one of their basic rights. In recognition of this, the Agreement authorizing Carefree to acquire these water accounts from Cave Creek was agreed to by both communities.
2. Impact:
From a financial perspective, Carefree does not assess a municipal property tax. Therefore, programs and services such as the master contract for fire/emergency services, are paid for through revenue from Carefree’s sales taxes. In order for the Town to continue to pay for these types of public safety services which all of its residents benefit from, it must continue to diversify its sales tax revenues.
The largest undeveloped commercial property in Carefree which has significant capacity to generate revenues for the Town and offset the need for a property tax is located within the Cave Creek Water Company service area. However, according to a lengthy public record, Cave Creek has mismanaged their water resources and refuses to provide sufficient water supplies for future commercial development in Carefree called for in the Agreement. Plain and simple, no water availability for future development in Carefree will result in the need for a property tax in the future which will impact ALL Carefree residents.
3. Public Safety/Community Concerns:
Every year, Rural Metro, which staffs Carefree’s Fire Department, inspects and “exercises” fire hydrants throughout the Carefree and Cave Creek Water Company service areas to be sure that they are operable and functioning properly. Since beginning these regular inspection programs in 2012, a large number of fire hydrants within Carefree on the Cave Creek Water Company system have evidenced significant deficiencies. However, Cave Creek has either intentionally or through shoddy management practices neglected to address these identified deficiencies. This creates significant personal safety issues for Carefree residents living in the Cave Creek water service area in the event of a fire.
Plain and simple, if you have a fire hydrant near your house or business, you should be able to rely on it being operational when needed. If you can’t rely upon it to operate properly, it creates a safety hazard and the potential for a significant liability claim against Carefree for knowing of these deficiencies, in spite of our inability to secure their correction by Cave Creek. This could create a significant liability claim which would become a liability for ALL Carefree residents.
4. Management of Water Resources:
Cave Creek’s public records clearly show a lack of both continuity of personnel and having the systems in place to manage this precious resource. Over the years since it has owned its water company, Cave Creek has either under-funded needed - if not required - water infrastructure improvements and not followed an industry accepted maintenance schedule. This has resulted in emergencies and more costly repairs.
Our bottom line is that no Carefree resident should be forced to have to continue to rely upon an outside political entity (Cave Creek) for their water service when that entity has not demonstrated an ability of effectively manage such a system.
So what is the solution?
Carefree has agreements in place with Scottsdale to deliver reliable, high quality water from the Central Arizona Project through Scottsdale’s system to fulfill the needs of ALL Carefree residents and businesses. The Town Council has been working with engineering specialists to model a united Carefree water system, and to define the overall costs. We are also resolving an equitable and affordable way to distribute the associated costs over an extended time period so as to mitigate the monthly costs to users. Doing nothing to correct this water situation will continue a situation which causes considerable harm to a sizable number of Carefree residents.
This is a situation which we need to either correct now or face the necessity that we will need to revisit it sometime in the future - when costs would likely be considerably higher. In the longer run, the costs of doing nothing now and pushing the problem into the future will far outweigh the costs of planning for and moving forward at this time to secure reliable, high quality water resources for ALL Carefree residents.
The Town Council has a fiduciary responsibility to protect and preserve the interests of all of the Town’s residents. We will continue to move forward on this important initiative until it is successfully completed.
Carefree Truth #669: Water informational meeting, Mayor Les Peterson, pt. 1 of 5: 7/9/18
http://carefreetruth2.com/carefree-truth-669.html
Carefree Truth #670: Water informational meeting, Lloyd Meyer, pt. 2 of 5: 7/9/18
http://carefreetruth2.com/carefree-truth-670.html
Carefree Truth #671: Water informational meeting, Tony Geiger, pt. 3 of 5: 7/9/18
http://carefreetruth2.com/carefree-truth-671.html
Carefree Truth #672: Water informational meeting, Mayor Peterson & Gary Neiss, pt. 4 of 5: 7/9/18
http://carefreetruth2.com/carefree-truth-672.html
Carefree Truth #673: Water informational meeting, Q & A, pt. 5A of 5: 7/9/18
http://carefreetruth2.com/carefree-truth-673.html
Carefree Truth #674: Water informational meeting, Q & A, pt. 5B of 5: 7/9/18
http://carefreetruth2.com/carefree-truth-674.html
Carefree Truth #675: Water informational meeting, Q & A, pt. 5C of 5: 7/9/18
http://carefreetruth2.com/carefree-truth-675.html
Carefree Truth # 733: Drought update, AZ Republic: 3/18/19
http://carefreetruth2.com/carefree-truth-733.html
Carefree Residents Alert
From the Office of Mayor Les Peterson
A special interest entity NOT associated with the Town of Carefree is currently conducting a telephone survey. This dark money/special interest group survey is intended to mislead Carefree residents regarding the current water negotiations under way with Cave Creek to consolidate water service to all accounts in Carefree within the Carefree Water Company.
Misinformation in the survey is stated as if it were factual information in an attempt to create false perceptions under the guise of “research.” Many Carefree residents have contacted the Town infuriated over the misleading questions.
The people conducting this “research” have refused to identify the participants behind this survey. As a result, the Town is investigating who and how this survey was authorized and funded so Carefree residents can be informed about the sponsor’s intent. Be alert to this situation should the people conducting this survey contact you or someone in your home.
What is the Real Situation Regarding Water Service for all Carefree Residents?
Carefree’s intent is clear: to secure a high quality, reliable water resource for ALL Carefree residents and businesses to ensure high quality of life services at the lowest possible costs to all.
There is no more precious resource in the arid desert southwest than water. It brings life to the desert and economic life to a community. Carefree made a concerted effort to protect this precious resource by purchasing the Carefree Water Company, which currently serves approximately ¾ of Carefree. In addition, Carefree has an enforceable Agreement with the Town of Cave Creek which enables Carefree to purchase the remaining balance of the water accounts in Carefree which are currently serviced by the Cave Creek Water Company system.
Why is it critical for Carefree to exercise its rights to acquire these water accounts at this time so that ALL Carefree residents are under the control of one water utility?
1. Representation:
Every Carefree resident should have representation on this critical community resource by the people they directly elect. Under the current approach, Carefree citizens receiving water service from the Cave Creek Water Company system do not have this requisite representation. This deprives them of one of their basic rights. In recognition of this, the Agreement authorizing Carefree to acquire these water accounts from Cave Creek was agreed to by both communities.
2. Impact:
From a financial perspective, Carefree does not assess a municipal property tax. Therefore, programs and services such as the master contract for fire/emergency services, are paid for through revenue from Carefree’s sales taxes. In order for the Town to continue to pay for these types of public safety services which all of its residents benefit from, it must continue to diversify its sales tax revenues.
The largest undeveloped commercial property in Carefree which has significant capacity to generate revenues for the Town and offset the need for a property tax is located within the Cave Creek Water Company service area. However, according to a lengthy public record, Cave Creek has mismanaged their water resources and refuses to provide sufficient water supplies for future commercial development in Carefree called for in the Agreement. Plain and simple, no water availability for future development in Carefree will result in the need for a property tax in the future which will impact ALL Carefree residents.
3. Public Safety/Community Concerns:
Every year, Rural Metro, which staffs Carefree’s Fire Department, inspects and “exercises” fire hydrants throughout the Carefree and Cave Creek Water Company service areas to be sure that they are operable and functioning properly. Since beginning these regular inspection programs in 2012, a large number of fire hydrants within Carefree on the Cave Creek Water Company system have evidenced significant deficiencies. However, Cave Creek has either intentionally or through shoddy management practices neglected to address these identified deficiencies. This creates significant personal safety issues for Carefree residents living in the Cave Creek water service area in the event of a fire.
Plain and simple, if you have a fire hydrant near your house or business, you should be able to rely on it being operational when needed. If you can’t rely upon it to operate properly, it creates a safety hazard and the potential for a significant liability claim against Carefree for knowing of these deficiencies, in spite of our inability to secure their correction by Cave Creek. This could create a significant liability claim which would become a liability for ALL Carefree residents.
4. Management of Water Resources:
Cave Creek’s public records clearly show a lack of both continuity of personnel and having the systems in place to manage this precious resource. Over the years since it has owned its water company, Cave Creek has either under-funded needed - if not required - water infrastructure improvements and not followed an industry accepted maintenance schedule. This has resulted in emergencies and more costly repairs.
Our bottom line is that no Carefree resident should be forced to have to continue to rely upon an outside political entity (Cave Creek) for their water service when that entity has not demonstrated an ability of effectively manage such a system.
So what is the solution?
Carefree has agreements in place with Scottsdale to deliver reliable, high quality water from the Central Arizona Project through Scottsdale’s system to fulfill the needs of ALL Carefree residents and businesses. The Town Council has been working with engineering specialists to model a united Carefree water system, and to define the overall costs. We are also resolving an equitable and affordable way to distribute the associated costs over an extended time period so as to mitigate the monthly costs to users. Doing nothing to correct this water situation will continue a situation which causes considerable harm to a sizable number of Carefree residents.
This is a situation which we need to either correct now or face the necessity that we will need to revisit it sometime in the future - when costs would likely be considerably higher. In the longer run, the costs of doing nothing now and pushing the problem into the future will far outweigh the costs of planning for and moving forward at this time to secure reliable, high quality water resources for ALL Carefree residents.
The Town Council has a fiduciary responsibility to protect and preserve the interests of all of the Town’s residents. We will continue to move forward on this important initiative until it is successfully completed.
Carefree Truth-Letters from Readers: 5/1/19
(Lyn's note: The following are responses to the water "survey" from Cave Creek.)
Curiouser and curiouser. Thanks.
Gail Thiele
Lyn,
Given the number of reputable and experienced condemnation attorneys and law firms in Arizona, why would Cave Creek hire an attorney from Chattanooga Tennessee? From the tone of his letter, he appears to be a political hack trying to stir up controversy.
And what little I understand, this seems to be a simple contractual matter spelled out in an intergovernmental agreement.
...So, let the games begin. I'm placing my bet on our Mayor and Town Council do what's right for the residents of Carefree.
Phil Corso
Good info. Appears as if CC just loves us water customers.
Charles Reaux
Hi Lyn:
Just a few random thoughts about the water situation.
It has always bothered me that as a resident of Carefree, since 2003, I had to get my water from Cave Creek. Not sure why because I enjoy living in Carefree and being able to enjoy many activities in Cave Creek. While I enjoy the Black Mountain Coffee Shop and Venues, I also enjoy Harold's, The Horny Toad and the Oak's Diner.
In 2010, not liking what was going on, I ran for Carefree Town Council and was elected for the 2011-2013 term. Boy, oh boy, did I get an education? From a ride along with the Maricopa County Sheriff to spending days with staff at the Town Hall and the Municipal Court, including one very full day with Stan Francom, the then general manager of the Carefree Water Company. It was at that time that I learned that there was a IGA that granted Carefree the right to acquire the accounts of Carefree residents and businesses that were served by Cave Creek Water.
Side note: It was not until I became a member of the town council that I learned that the Carefree Town Clerk is also the Town's Cemeterian!
But by far the biggest learning experience was that of the Town's ultra-conservative, super-frugal, extra-careful attitude that it was the fiduciary of the residents' funds. How it got that way had to be a mélange of John Pierson, former Town Administrator, now carried on by Gary Neiss, along with Mayors Morgan, Fulcher, Schwan and Peterson and the combination of sound business practices by all involved.
When I heard that there was a "survey" being conducted about the acquisition of Cave Creek water accounts by the Town of Carefree and that it was going to cost millions, my first thought was, "I didn't get a call." Whoever is behind the "survey" and what they hope is going to be achieved tells me that they do not understand Carefree residents. Yes, demographically speaking, some may be older than others, yes, socio-economically speaking, some may have a higher income, greater wealth, or more expensive homes, BUT THEY ARE NOT STUPID. They listen and learn and have watched; they become informed about what's going on in town. I have watched the Town go through various ups and downs, but there are more ups than downs. Having sat through hours of budget workshops and presentations, I envy at the fortitude of current Council members to wade through, line by line, the reams of paperwork. The Town staff is blessed with higher levels of mental strength as they continually educate the elected officials.
What is the outcome? Year after year, through good times and not-so-good times, the Town ends up with a Budget that works. Year after year, despite talk of doom and gloom, more monies seem to find their way into the Town's reserves, now over $9 million.
While I have no knowledge of how the "survey" was uncovered, I can only guess that one or more of the educated and informed Carefree users of Cave Creek Water became suspicious of the information being provided. In today's age, we learn of "phishing" scams on the Internet, email messages from former Nigerian oil ministers and I am certain that we have all had those robo-calls with offers that sound too good to be true.
As I understand the activities evolving around the acquisition of 526 Carefree residential and business accounts currently served by Cave Creek Water, those accounts will bring with them their respective water allocation of CAP water. Back in 2011, I recall doing a comparison between what I was paying to Cave Creek, versus what I would pay to Carefree, using rates that were in effect at that time. I think that I was right in the middle of the category of average user. Carefree's water rates at that time were slightly lower, by about 5%. I looked at a couple of statements, one in winter when there is less evaporation from my pool, and, more importantly, less landscape irrigation. The other was from June of last year. One had 5,620 gallons and the other 22,940. Comparing my bill and calculating what it would have cost based on Carefree's current rates, Carefree water would have been 8% less in the low usage month and 2.5% lower in the high usage month.
The documented track record of the Town of Carefree tells me that it will not embark upon the acquisition of these water accounts without having done its due diligence to determine that it can provide equal or better service. I, for one, hope that a blend of CAP and aquifer water will be better than all CAP water that I currently receive, same safe quality, but with less hardness.
Yes, there will obviously have to be a cost associated with the acquisition, just as there was a cost to the Town when it first purchased its water company. It is a business. I have full confidence that the Town of Carefree will negotiate the best possible price for the acquisition, to be followed by the implementation of financing to pay for it. This will be so that ALL of the Carefree residents and businesses can enjoy the benefits of great stewardship of the Town's resources.
Arthur Gimson
Carefree Truth-Letters from Readers: 5/15/19
Very good of Arthur to send the note. My opinion of the situation - My daddy the judge used to say, “Liars figure but numbers don’t lie”. He also said, “I won’t suffer fools for long", and "I won’t sail on a ship of fools without a life raft”. When it comes to honoring their contractual water commitments, the town of Cave Creek is behaving like a ship of fools and the Carefree Town Council is our life raft. We are disgusted with the disinformation and social media campaigns they have embarked on to somehow shame and force the town of Carefree to relent on their efforts to legally acquire the Carefree water accounts from Cave Creek. In my opinion, it’s obvious that Cave Creek is delaying the water account transfers and Will Serve letters in order to shut Carefree out of opportunities to bring new business development into our community.
Mike Johnson
(Lyn's note: Mike is the HOA president in Provence, formally Carefree Ironwood Estates, which agreed to take the worst of the impact from the commercial development on the NE corner of CF Hwy and CC Rd because they recognized the value to all the Carefree residents of having a large commercial center there in order to generate sales tax revenue and keep a local property tax at bay.)
Carefree Truth-Letters from Readers: 5/29/19
Dear Neighbors:
I, for one, am getting a little tired of the shenanigans surrounding the situation with the Town of Carefree’s efforts to acquire water accounts of approximately 526 Carefree residents and businesses currently being served by Cave Creek. I am equally sure that you are tired of reading about it. Unfortunately, water is the life-blood of living in the desert, and an adequate supply of water allows us to enjoy what we have. Without water, our homes will have zero value.
The Town of Cave Creek issued a news release with the title of “Carefree Residents Concerned with Water Take Over”. The news release cited various situations based on a "survey" that was conducted April 18-22, 2019. The news release did NOT include some basic information, easily uncovered by reading the actual results of the survey, which can be found on the Town of Cave Creek’s website. The opening paragraph of the release stated that “Carefree residents are concerned about the costs associated to take over a portion of the Cave Creek water system…”. Of the 10 questions asked on the survey, only one related to costs. That question stated “would cost Carefree residents more than $10 million dollars.”
Basic Fact # 1. The "survey" asked questions of 147 respondents, of which 108 (73.5%) receive their water from the Town of Carefree. Only 27 (18.4%) were Carefree residents served by Cave Creek Water. Question: Why did the survey not involve more Carefree residents on Cave Creek Water? Potential answer is that the survey then permits the survey taker to present questions that may provide misleading information, or to ask a question that evokes the answer that the survey-taker is seeking. Or was the survey specifically designed to contact Carefree residents to sow seeds of concern and infuse scare tactics?
Question #6 asked the 147 respondents which Town provided water services. 73.5% (108) were Carefree water users. Only 27 out of 147 were Carefree residents on Cave Creek Water.
Basic Fact #2, not summarized in the news release. The question asked was "…generally speaking, would you say that things in Carefree are going in the right direction, or have they gotten off on the wrong track?" 98, or two-thirds of the respondents, said that Carefree is going in the right direction, less than 20%, only 29, said the wrong direction with the remaining 20 (13.6%) respondents not answering.
Basic Fact #3, again, not summarized in the news release. A question asked for respondents to indicate issues that they thought should be the top priority for the Town Council. Please note; not issues for the Town’s residents, but issues for the Town Council. The highest percentage of respondents (26.5%) or 39 out of 147 stated that "improving the local economy and bring jobs to the area" was the most important. Missing information: The acquisition of over 526 water accounts into the Carefree Water Company will generate additional sales tax revenues to the water company, a wholly owned entity of the Town of Carefree. While neither the Town, nor its water company employs huge numbers of people, the potential is there for an additional billing clerk, administrative personnel, or maintenance technicians. The recently re-zoned parcel of land on the NE corner of Carefree Highway and N. Cave Creek Road is in the Cave Creek water service area, but Cave Creek is unable (or unwilling) to issue a “Will Serve” letter to the developer. Even though this parcel of land falls within the Cave Creek service area, Carefree has stepped forward to assist in the water supply that would allow development to move forward, providing construction jobs, tax revenues during construction and ongoing revenues from retail merchants. All that would improve the local economy and add jobs. In neighboring Cave Creek, just west of the Chevron gas station, lot grading for a Sprouts store is underway. This parcel of land is in the Cave Creek water service area, but it is my understanding that water will be provided by the City of Phoenix.
"Have you stopped beating your wife?" comes to mind when one carefully reads Survey question 10: "If Carefree takes over the water system from Cave Creek, the water service will very likely remain the same, but rates will increase. Based on this statement, are you more likely or less likely to support the takeover of the water system?" It is not a surprise that two thirds were less likely. Please bear in mind that the Town of Carefree is NOT attempting to acquire the Cave Creek Water system, only those 526 accounts of Carefree customers currently served by Cave Creek Water.
Over the years, it is alleged by some that Cave Creek paid too much when it acquired its water company from private ownership. Cave Creek later added a water treatment facility and a wastewater treatment plant, both of which were done using borrowed money. At one of last year’s Carefree water presentations, it was stated that the Cave Creek wastewater treatment plant is running at less than 40% of capacity, incurring high operating costs.
Final comment: In the final paragraph of the Cave Creek news release, in part, states, "Carefree has sued Cave Creek to take over the water service for more than 500 customers." While I am not fully informed of all the legal activities, to the best of my knowledge the Town of Carefree in an effort to start negotiations based on the wording of the inter-governmental agreement, asked Cave Creek to meet to begin arbitration. Cave Creek chose not to enter into negotiations but insisted that Carefree proceed with condemnation action before starting any negotiations. In order to move forward, Carefree had no choice. It is anticipated that the language of the contract will prevail without costly (and lengthy) litigation.
Arthur Gimson
(Lyn's note: As a board member of his HOA, Arthur sent this to the residents in Canyon Ridge. Reprinted with permission from Arthur.)
Carefree Truth-Letters from Readers: 5/29/19
Please see attached page from the Cave Creek Council agenda for their upcoming meeting tomorrow (Monday). You all should have seen the notice CC water sent out about their water quality issue. This is a VERY SERIOUS problem as evidenced by the fact that they are proposing to spend million of dollars for an immediate fix. This is money that is not in their 2020 budget.
https://cavecreek.civicweb.net/FileStorage/795DA6373A07471E839957FE860D76E1-Pall Membrane Aria Units Action Item Request.pdf
Tony Geiger
Lyn,
We are currently experiencing extremely high water pressure at our home today (Sunday), which blew off a water line to our refrigerator and flooded our kitchen. Our brand new water heater is also draining from its pressure valve (as it should). After testing the pressure at an exterior hose bib, it read 150 psi, which is too high. We’ve contacted the Cave Creek Water Co. and they said they’d look into it.
We’re reaching out to you to spread the word about the high pressure in case others are having similar plumbing failures; residents who are out of town may want someone to check on their homes if they know they’ve left their water on.
Thank you!
Anne Thompson
Joe Graham
(Lyn's note: CCW came out, found the issue, and fixed it, but it's always a good thing to know that if your pressure is too high, things can go badly wrong.)
Lyn, I wondered about this last night as my drip system regulators blew gaskets and my shower pressure was extremely high. Meant to check early this morning. Just went out and my pressure gauge is showing 118 lbs which is really too high. Also, sounds like my pressure regulator is not doing a good job and needs replacing. I have turned off the water to the house. A really good heads up for everyone to check their own pressure valve. You and Gary wrote a great deal about this a couple of years ago. Funny, I flushed my water heaters this afternoon and checking the pressure valve was next on the list. Yesterday late the jar tops on both of my sprinkler valved blew out the gaskets which I replaced. When I got into the shower last night I got hit by very high water pressure. This morning, the kitchen faucet was leaking even though I recently put in a new valve. I was going for my gauge when I got your email. Good alert system.
Tom Surrency
Carefree Truth-Letters from Readers: 6/12/19
I watched Monday night's (6/3) Cave Creek Council meeting via live streaming. A few of my takeaways:
1) This was an extraordinary action taken by the Council. In my decades of working on the design, build-out, start up and maintenance of water treatment plants, I have never seen a town basically approve a new water treatment plant in one night without any advance planning, discussion or debate.
Having worked on attempting to pass a 5 year $8 million Capital Improvement Plan in 2106/17 as a member of the WAC, there was NEVER any discussion on the need for a new water plant. This also holds true for the current WAC, as Dr. Kerry Smith, current WAC Chair, was totally blindsided by this new requirement.
2) Cave Creek claims the water is safe with elevated levels of TOC’s. This was repeated by their Utility Manager several times. What makes me suspicious of that claim is that Cave Creek did not have any science or scientists back up their claims. The question I have is, if the water is so safe, why the emergency action to basically abandon the existing water plant and spend millions on a temporary fix?
On the other hand, Dr. Kerry Smith spoke out that there are potential health risks associated with the elevated levels of TOC’s. The fact that he is a member of the National Academy of Science, a full professor of Environmental Economics and actually consulted with the EPA on the rule making for allowable levels of TOC’s, brings a much higher level of credibility than the self serving claims make by Cave Creek.
3) I thought I heard Mr. Kaylor, the Utility Manager for Cave Creek, state that the $2,000,000 plus that they will be spending is only a temporary fix and will only accommodate the treatment of 2/3 of the Town’s peak water use. How much more money will it take to put in place a full, permanent fix? How will this impact Cave Creek water rates? Does this mean water shortages this summer?
It will certainly mean that a lot more money will have to be spent to put in place a permanent fix.
4) Not one penetrating question from the Council. Talk about a lack of transparency.
We have now entered into the situation that we have a serious water quality issue. This does not just impact the 526 Carefree households, but the entire Town of Carefree, as 15-20% of The Carefree Water Company Water is purchased from Cave Creek.
I sincerely hope that Carefree quickly moves forward with completing the separation from Cave Creek Water.
Tony Geiger
When I decided to run for Council last year, the first person you referred me to was Tony Geiger. You said that I needed to learn about the water concerns. I had a chance to talk to him at length several times and understood the gravity of the situation as beyond serious. He has been a resident nearly 20 years , an expert in all things water, and when a guy that is on the Cave Creek Water System tells you point-blank that he is going to cut his losses and sell his house below market value if nothing is done, then you have to take it seriously, which we did. We need to continue to expedite this process, and Mayor Peterson, Vice Mayor Crane, and the rest of the Council must continue to work together, as this is the number one priority for our residents in Carefree. I really love serving the town. It's definitely some work, but when we can be a part of making the town better, its definitely worth it.
Councilman Vince D'Aliesio
Thank you for keeping us updated on the water situation. We've had so much dirt and silt in our water that we keep having to replace the valves in our year old toilets because they are getting clogged up. We drain the tank, suck all the dirt muck out and replace the valves....and it's good until the silt builds up again.....Honestly, this is the water they are saying is safe to drink and use for our families. Please Carefree....move ahead as soon a possible!
Lori Wolfe
Carefree Truth-Letters from Readers: 6/12/19
(Lyn's note: Below is the email, with a copy to me, that Arthur Gimson, who is on the HOA Board in Canyon Creek Estates, sent out to his residents along with a copy of the COINS sent out on 6/13. The photos did not come through on my copy of COINS either.)
Dear Neighbors:
Below, please find a copy of COINS, the e-newsletter from the Town of Carefree. As mentioned in previous messages, the Town of Carefree receives between 20 and 30% of its water needs from the Town of Cave Creek, with the majority of the treated water coming from the City of Scottsdale. Due to problems, fully described below, Carefree has suspended water deliveries into its system from Cave Creek.
Please note that this will not make any difference to the water to the homes in Canyon Creek Estates, we will still be getting all of our water from Cave Creek, but it reflects the concerns raised in the past about Cave Creek's inability to properly operate and maintain its water system. While I have not seen any recent updates, the new mobile treatment units were originally planned for arrival on, or about June 15, with full installation to be completed by month's end.
I have not noticed any discoloration of my water, and I hope it stays that way.
Arthur Gimson
Secretary, CCE HOA
COINS
10:00 AM Arizona Local Time
COINS Info - 06-13-2019 - Carefree Water Company Suspends Water Deliveries From Cave Creek
On Thursday, June 6, the Carefree Water Company (CWC) suspended potable water deliveries into their system from Cave Creek. Cave Creek and Scottsdale normally treat the CWC's Central Arizona Project (CAP) allocation. Curtailment of treated CAP water from Cave Creek has been fully replaced with an increase in treated CAP water from Scottsdale.
According to Greg Crossman, General Manager of the CWC, the suspension of Cave Creek deliveries was primarily due to two factors:
* Heavily discolored (brown/rust colored) water was observed at the CWC's interconnection with Cave Creek. This discolored water has been attributed in part to Cave Creek's use of ferric chloride in their water treatment process. CWC placed filters at this location many years ago to treat the potable water received from Cave Creek. Currently there are concerns that this discolored water would overwhelm the filtration capacity and enter the CWC's distribution system. This could lead to the "dirty" water expanding into portions of the CWC's distribution system, ultimately being delivered to customers. The following photos depict the water discoloration issue:
(Lyn's note: The following are responses to the water "survey" from Cave Creek.)
Curiouser and curiouser. Thanks.
Gail Thiele
Lyn,
Given the number of reputable and experienced condemnation attorneys and law firms in Arizona, why would Cave Creek hire an attorney from Chattanooga Tennessee? From the tone of his letter, he appears to be a political hack trying to stir up controversy.
And what little I understand, this seems to be a simple contractual matter spelled out in an intergovernmental agreement.
...So, let the games begin. I'm placing my bet on our Mayor and Town Council do what's right for the residents of Carefree.
Phil Corso
Good info. Appears as if CC just loves us water customers.
Charles Reaux
Hi Lyn:
Just a few random thoughts about the water situation.
It has always bothered me that as a resident of Carefree, since 2003, I had to get my water from Cave Creek. Not sure why because I enjoy living in Carefree and being able to enjoy many activities in Cave Creek. While I enjoy the Black Mountain Coffee Shop and Venues, I also enjoy Harold's, The Horny Toad and the Oak's Diner.
In 2010, not liking what was going on, I ran for Carefree Town Council and was elected for the 2011-2013 term. Boy, oh boy, did I get an education? From a ride along with the Maricopa County Sheriff to spending days with staff at the Town Hall and the Municipal Court, including one very full day with Stan Francom, the then general manager of the Carefree Water Company. It was at that time that I learned that there was a IGA that granted Carefree the right to acquire the accounts of Carefree residents and businesses that were served by Cave Creek Water.
Side note: It was not until I became a member of the town council that I learned that the Carefree Town Clerk is also the Town's Cemeterian!
But by far the biggest learning experience was that of the Town's ultra-conservative, super-frugal, extra-careful attitude that it was the fiduciary of the residents' funds. How it got that way had to be a mélange of John Pierson, former Town Administrator, now carried on by Gary Neiss, along with Mayors Morgan, Fulcher, Schwan and Peterson and the combination of sound business practices by all involved.
When I heard that there was a "survey" being conducted about the acquisition of Cave Creek water accounts by the Town of Carefree and that it was going to cost millions, my first thought was, "I didn't get a call." Whoever is behind the "survey" and what they hope is going to be achieved tells me that they do not understand Carefree residents. Yes, demographically speaking, some may be older than others, yes, socio-economically speaking, some may have a higher income, greater wealth, or more expensive homes, BUT THEY ARE NOT STUPID. They listen and learn and have watched; they become informed about what's going on in town. I have watched the Town go through various ups and downs, but there are more ups than downs. Having sat through hours of budget workshops and presentations, I envy at the fortitude of current Council members to wade through, line by line, the reams of paperwork. The Town staff is blessed with higher levels of mental strength as they continually educate the elected officials.
What is the outcome? Year after year, through good times and not-so-good times, the Town ends up with a Budget that works. Year after year, despite talk of doom and gloom, more monies seem to find their way into the Town's reserves, now over $9 million.
While I have no knowledge of how the "survey" was uncovered, I can only guess that one or more of the educated and informed Carefree users of Cave Creek Water became suspicious of the information being provided. In today's age, we learn of "phishing" scams on the Internet, email messages from former Nigerian oil ministers and I am certain that we have all had those robo-calls with offers that sound too good to be true.
As I understand the activities evolving around the acquisition of 526 Carefree residential and business accounts currently served by Cave Creek Water, those accounts will bring with them their respective water allocation of CAP water. Back in 2011, I recall doing a comparison between what I was paying to Cave Creek, versus what I would pay to Carefree, using rates that were in effect at that time. I think that I was right in the middle of the category of average user. Carefree's water rates at that time were slightly lower, by about 5%. I looked at a couple of statements, one in winter when there is less evaporation from my pool, and, more importantly, less landscape irrigation. The other was from June of last year. One had 5,620 gallons and the other 22,940. Comparing my bill and calculating what it would have cost based on Carefree's current rates, Carefree water would have been 8% less in the low usage month and 2.5% lower in the high usage month.
The documented track record of the Town of Carefree tells me that it will not embark upon the acquisition of these water accounts without having done its due diligence to determine that it can provide equal or better service. I, for one, hope that a blend of CAP and aquifer water will be better than all CAP water that I currently receive, same safe quality, but with less hardness.
Yes, there will obviously have to be a cost associated with the acquisition, just as there was a cost to the Town when it first purchased its water company. It is a business. I have full confidence that the Town of Carefree will negotiate the best possible price for the acquisition, to be followed by the implementation of financing to pay for it. This will be so that ALL of the Carefree residents and businesses can enjoy the benefits of great stewardship of the Town's resources.
Arthur Gimson
Carefree Truth-Letters from Readers: 5/15/19
Very good of Arthur to send the note. My opinion of the situation - My daddy the judge used to say, “Liars figure but numbers don’t lie”. He also said, “I won’t suffer fools for long", and "I won’t sail on a ship of fools without a life raft”. When it comes to honoring their contractual water commitments, the town of Cave Creek is behaving like a ship of fools and the Carefree Town Council is our life raft. We are disgusted with the disinformation and social media campaigns they have embarked on to somehow shame and force the town of Carefree to relent on their efforts to legally acquire the Carefree water accounts from Cave Creek. In my opinion, it’s obvious that Cave Creek is delaying the water account transfers and Will Serve letters in order to shut Carefree out of opportunities to bring new business development into our community.
Mike Johnson
(Lyn's note: Mike is the HOA president in Provence, formally Carefree Ironwood Estates, which agreed to take the worst of the impact from the commercial development on the NE corner of CF Hwy and CC Rd because they recognized the value to all the Carefree residents of having a large commercial center there in order to generate sales tax revenue and keep a local property tax at bay.)
Carefree Truth-Letters from Readers: 5/29/19
Dear Neighbors:
I, for one, am getting a little tired of the shenanigans surrounding the situation with the Town of Carefree’s efforts to acquire water accounts of approximately 526 Carefree residents and businesses currently being served by Cave Creek. I am equally sure that you are tired of reading about it. Unfortunately, water is the life-blood of living in the desert, and an adequate supply of water allows us to enjoy what we have. Without water, our homes will have zero value.
The Town of Cave Creek issued a news release with the title of “Carefree Residents Concerned with Water Take Over”. The news release cited various situations based on a "survey" that was conducted April 18-22, 2019. The news release did NOT include some basic information, easily uncovered by reading the actual results of the survey, which can be found on the Town of Cave Creek’s website. The opening paragraph of the release stated that “Carefree residents are concerned about the costs associated to take over a portion of the Cave Creek water system…”. Of the 10 questions asked on the survey, only one related to costs. That question stated “would cost Carefree residents more than $10 million dollars.”
Basic Fact # 1. The "survey" asked questions of 147 respondents, of which 108 (73.5%) receive their water from the Town of Carefree. Only 27 (18.4%) were Carefree residents served by Cave Creek Water. Question: Why did the survey not involve more Carefree residents on Cave Creek Water? Potential answer is that the survey then permits the survey taker to present questions that may provide misleading information, or to ask a question that evokes the answer that the survey-taker is seeking. Or was the survey specifically designed to contact Carefree residents to sow seeds of concern and infuse scare tactics?
Question #6 asked the 147 respondents which Town provided water services. 73.5% (108) were Carefree water users. Only 27 out of 147 were Carefree residents on Cave Creek Water.
Basic Fact #2, not summarized in the news release. The question asked was "…generally speaking, would you say that things in Carefree are going in the right direction, or have they gotten off on the wrong track?" 98, or two-thirds of the respondents, said that Carefree is going in the right direction, less than 20%, only 29, said the wrong direction with the remaining 20 (13.6%) respondents not answering.
Basic Fact #3, again, not summarized in the news release. A question asked for respondents to indicate issues that they thought should be the top priority for the Town Council. Please note; not issues for the Town’s residents, but issues for the Town Council. The highest percentage of respondents (26.5%) or 39 out of 147 stated that "improving the local economy and bring jobs to the area" was the most important. Missing information: The acquisition of over 526 water accounts into the Carefree Water Company will generate additional sales tax revenues to the water company, a wholly owned entity of the Town of Carefree. While neither the Town, nor its water company employs huge numbers of people, the potential is there for an additional billing clerk, administrative personnel, or maintenance technicians. The recently re-zoned parcel of land on the NE corner of Carefree Highway and N. Cave Creek Road is in the Cave Creek water service area, but Cave Creek is unable (or unwilling) to issue a “Will Serve” letter to the developer. Even though this parcel of land falls within the Cave Creek service area, Carefree has stepped forward to assist in the water supply that would allow development to move forward, providing construction jobs, tax revenues during construction and ongoing revenues from retail merchants. All that would improve the local economy and add jobs. In neighboring Cave Creek, just west of the Chevron gas station, lot grading for a Sprouts store is underway. This parcel of land is in the Cave Creek water service area, but it is my understanding that water will be provided by the City of Phoenix.
"Have you stopped beating your wife?" comes to mind when one carefully reads Survey question 10: "If Carefree takes over the water system from Cave Creek, the water service will very likely remain the same, but rates will increase. Based on this statement, are you more likely or less likely to support the takeover of the water system?" It is not a surprise that two thirds were less likely. Please bear in mind that the Town of Carefree is NOT attempting to acquire the Cave Creek Water system, only those 526 accounts of Carefree customers currently served by Cave Creek Water.
Over the years, it is alleged by some that Cave Creek paid too much when it acquired its water company from private ownership. Cave Creek later added a water treatment facility and a wastewater treatment plant, both of which were done using borrowed money. At one of last year’s Carefree water presentations, it was stated that the Cave Creek wastewater treatment plant is running at less than 40% of capacity, incurring high operating costs.
Final comment: In the final paragraph of the Cave Creek news release, in part, states, "Carefree has sued Cave Creek to take over the water service for more than 500 customers." While I am not fully informed of all the legal activities, to the best of my knowledge the Town of Carefree in an effort to start negotiations based on the wording of the inter-governmental agreement, asked Cave Creek to meet to begin arbitration. Cave Creek chose not to enter into negotiations but insisted that Carefree proceed with condemnation action before starting any negotiations. In order to move forward, Carefree had no choice. It is anticipated that the language of the contract will prevail without costly (and lengthy) litigation.
Arthur Gimson
(Lyn's note: As a board member of his HOA, Arthur sent this to the residents in Canyon Ridge. Reprinted with permission from Arthur.)
Carefree Truth-Letters from Readers: 5/29/19
Please see attached page from the Cave Creek Council agenda for their upcoming meeting tomorrow (Monday). You all should have seen the notice CC water sent out about their water quality issue. This is a VERY SERIOUS problem as evidenced by the fact that they are proposing to spend million of dollars for an immediate fix. This is money that is not in their 2020 budget.
https://cavecreek.civicweb.net/FileStorage/795DA6373A07471E839957FE860D76E1-Pall Membrane Aria Units Action Item Request.pdf
Tony Geiger
Lyn,
We are currently experiencing extremely high water pressure at our home today (Sunday), which blew off a water line to our refrigerator and flooded our kitchen. Our brand new water heater is also draining from its pressure valve (as it should). After testing the pressure at an exterior hose bib, it read 150 psi, which is too high. We’ve contacted the Cave Creek Water Co. and they said they’d look into it.
We’re reaching out to you to spread the word about the high pressure in case others are having similar plumbing failures; residents who are out of town may want someone to check on their homes if they know they’ve left their water on.
Thank you!
Anne Thompson
Joe Graham
(Lyn's note: CCW came out, found the issue, and fixed it, but it's always a good thing to know that if your pressure is too high, things can go badly wrong.)
Lyn, I wondered about this last night as my drip system regulators blew gaskets and my shower pressure was extremely high. Meant to check early this morning. Just went out and my pressure gauge is showing 118 lbs which is really too high. Also, sounds like my pressure regulator is not doing a good job and needs replacing. I have turned off the water to the house. A really good heads up for everyone to check their own pressure valve. You and Gary wrote a great deal about this a couple of years ago. Funny, I flushed my water heaters this afternoon and checking the pressure valve was next on the list. Yesterday late the jar tops on both of my sprinkler valved blew out the gaskets which I replaced. When I got into the shower last night I got hit by very high water pressure. This morning, the kitchen faucet was leaking even though I recently put in a new valve. I was going for my gauge when I got your email. Good alert system.
Tom Surrency
Carefree Truth-Letters from Readers: 6/12/19
I watched Monday night's (6/3) Cave Creek Council meeting via live streaming. A few of my takeaways:
1) This was an extraordinary action taken by the Council. In my decades of working on the design, build-out, start up and maintenance of water treatment plants, I have never seen a town basically approve a new water treatment plant in one night without any advance planning, discussion or debate.
Having worked on attempting to pass a 5 year $8 million Capital Improvement Plan in 2106/17 as a member of the WAC, there was NEVER any discussion on the need for a new water plant. This also holds true for the current WAC, as Dr. Kerry Smith, current WAC Chair, was totally blindsided by this new requirement.
2) Cave Creek claims the water is safe with elevated levels of TOC’s. This was repeated by their Utility Manager several times. What makes me suspicious of that claim is that Cave Creek did not have any science or scientists back up their claims. The question I have is, if the water is so safe, why the emergency action to basically abandon the existing water plant and spend millions on a temporary fix?
On the other hand, Dr. Kerry Smith spoke out that there are potential health risks associated with the elevated levels of TOC’s. The fact that he is a member of the National Academy of Science, a full professor of Environmental Economics and actually consulted with the EPA on the rule making for allowable levels of TOC’s, brings a much higher level of credibility than the self serving claims make by Cave Creek.
3) I thought I heard Mr. Kaylor, the Utility Manager for Cave Creek, state that the $2,000,000 plus that they will be spending is only a temporary fix and will only accommodate the treatment of 2/3 of the Town’s peak water use. How much more money will it take to put in place a full, permanent fix? How will this impact Cave Creek water rates? Does this mean water shortages this summer?
It will certainly mean that a lot more money will have to be spent to put in place a permanent fix.
4) Not one penetrating question from the Council. Talk about a lack of transparency.
We have now entered into the situation that we have a serious water quality issue. This does not just impact the 526 Carefree households, but the entire Town of Carefree, as 15-20% of The Carefree Water Company Water is purchased from Cave Creek.
I sincerely hope that Carefree quickly moves forward with completing the separation from Cave Creek Water.
Tony Geiger
When I decided to run for Council last year, the first person you referred me to was Tony Geiger. You said that I needed to learn about the water concerns. I had a chance to talk to him at length several times and understood the gravity of the situation as beyond serious. He has been a resident nearly 20 years , an expert in all things water, and when a guy that is on the Cave Creek Water System tells you point-blank that he is going to cut his losses and sell his house below market value if nothing is done, then you have to take it seriously, which we did. We need to continue to expedite this process, and Mayor Peterson, Vice Mayor Crane, and the rest of the Council must continue to work together, as this is the number one priority for our residents in Carefree. I really love serving the town. It's definitely some work, but when we can be a part of making the town better, its definitely worth it.
Councilman Vince D'Aliesio
Thank you for keeping us updated on the water situation. We've had so much dirt and silt in our water that we keep having to replace the valves in our year old toilets because they are getting clogged up. We drain the tank, suck all the dirt muck out and replace the valves....and it's good until the silt builds up again.....Honestly, this is the water they are saying is safe to drink and use for our families. Please Carefree....move ahead as soon a possible!
Lori Wolfe
Carefree Truth-Letters from Readers: 6/12/19
(Lyn's note: Below is the email, with a copy to me, that Arthur Gimson, who is on the HOA Board in Canyon Creek Estates, sent out to his residents along with a copy of the COINS sent out on 6/13. The photos did not come through on my copy of COINS either.)
Dear Neighbors:
Below, please find a copy of COINS, the e-newsletter from the Town of Carefree. As mentioned in previous messages, the Town of Carefree receives between 20 and 30% of its water needs from the Town of Cave Creek, with the majority of the treated water coming from the City of Scottsdale. Due to problems, fully described below, Carefree has suspended water deliveries into its system from Cave Creek.
Please note that this will not make any difference to the water to the homes in Canyon Creek Estates, we will still be getting all of our water from Cave Creek, but it reflects the concerns raised in the past about Cave Creek's inability to properly operate and maintain its water system. While I have not seen any recent updates, the new mobile treatment units were originally planned for arrival on, or about June 15, with full installation to be completed by month's end.
I have not noticed any discoloration of my water, and I hope it stays that way.
Arthur Gimson
Secretary, CCE HOA
COINS
10:00 AM Arizona Local Time
COINS Info - 06-13-2019 - Carefree Water Company Suspends Water Deliveries From Cave Creek
On Thursday, June 6, the Carefree Water Company (CWC) suspended potable water deliveries into their system from Cave Creek. Cave Creek and Scottsdale normally treat the CWC's Central Arizona Project (CAP) allocation. Curtailment of treated CAP water from Cave Creek has been fully replaced with an increase in treated CAP water from Scottsdale.
According to Greg Crossman, General Manager of the CWC, the suspension of Cave Creek deliveries was primarily due to two factors:
* Heavily discolored (brown/rust colored) water was observed at the CWC's interconnection with Cave Creek. This discolored water has been attributed in part to Cave Creek's use of ferric chloride in their water treatment process. CWC placed filters at this location many years ago to treat the potable water received from Cave Creek. Currently there are concerns that this discolored water would overwhelm the filtration capacity and enter the CWC's distribution system. This could lead to the "dirty" water expanding into portions of the CWC's distribution system, ultimately being delivered to customers. The following photos depict the water discoloration issue:
Photo #1 - Brown/Rust Colored Water Delivered to CWC Filters
[Brown-Rust Colored Water Delivered to CWC Filters]
[Brown-Rust Colored Water Delivered to CWC Filters]
Cave Creek Water: Brown Colored Water
Water filter on Cave Creek Water
Photo #2 - Partially Cleaned Filters Showing Materials Causing the Water Discoloration
[Partially Cleaned Filters Showing Materials Causing the Water Discoloration]
[Partially Cleaned Filters Showing Materials Causing the Water Discoloration]
* In the past four months, Cave Creek has been required by the Arizona Department of Environmental Quality (ADEQ) to issue a second Public Notice regarding a Treatment Technique violation for the removal of total organic carbon (TOC) at their water treatment plant. While Cave Creek has reported that there are no known immediate or direct health issues related to TOC, the presence of TOC in chlorinated drinking water is a precursor to the formation of disinfection byproducts (DBPs) which are regulated by the EPA. Stated Mr. Crossman, "We are at the time of year where the potential for the formation of DBPs is at its greatest due to temperature, chlorine demand and the presence of TOC, so caution is warranted."
Because of these issues, and as a precautionary measure to further safeguard CWC customers, the decision was made to close the Cave Creek interconnection until such time that Cave Creek remedies these issues. The CWC will stay abreast of the situation, and will await water quality data confirming that proposed enhancements to the Cave Creek water treatment plant meet ADEQ standards for TOC removal. At that point, the CWC will re-evaluate a return to purchasing treated CAP water through the Cave Creek Water system.
I keep hoping to hear that the new nearly million dollar units are in Cave Creek and are being hooked up.
There is a little more negative stuff about TOC’s that make me worried. That’s just the start. Greg and I talked a little bit about it when he gave me the email addresses at Maricopa County and ADEQ. If TOCs are not well managed, they often need to increase the chemicals that will ‘disinfect’ the water. Most of the time, they use chlorine, which works, but that often causes something called THMS, which is the abbreviation forTrihalomethanes, which are a group of four chemicals that are formed along with other disinfection by products when chlorine or other disinfectants used to control microbial contaminants in drinking water react with naturally occurring organic and inorganic matter in water. In other words, if you cannot control the organic stuff through regular treatment, you have to use disinfectants! The man who is currently the Chair of the Cave Creek Water Advisory Committee talked about THMS when Cave Creek Council was hearing about portable, mobile, treatment units.
THMS is believed to be cancer causing.
Arthur Gimson
(Lyn's note: I forwarded the COINS issue about closing the connection to Cave Creek Water due to concerns about the dirty water to our residents in Sentinel Rock.)
Brown water from Cave Creek is not new news for any of us in our neighborhood. Thanks for the update and your continued work to move this project forward. All I know is I don't even want Cave Creeks water to flush my toilets.
Lori W.
(Lyn's note: Lori is thanking Carefree, not me, for moving this forward.)
Because of these issues, and as a precautionary measure to further safeguard CWC customers, the decision was made to close the Cave Creek interconnection until such time that Cave Creek remedies these issues. The CWC will stay abreast of the situation, and will await water quality data confirming that proposed enhancements to the Cave Creek water treatment plant meet ADEQ standards for TOC removal. At that point, the CWC will re-evaluate a return to purchasing treated CAP water through the Cave Creek Water system.
I keep hoping to hear that the new nearly million dollar units are in Cave Creek and are being hooked up.
There is a little more negative stuff about TOC’s that make me worried. That’s just the start. Greg and I talked a little bit about it when he gave me the email addresses at Maricopa County and ADEQ. If TOCs are not well managed, they often need to increase the chemicals that will ‘disinfect’ the water. Most of the time, they use chlorine, which works, but that often causes something called THMS, which is the abbreviation forTrihalomethanes, which are a group of four chemicals that are formed along with other disinfection by products when chlorine or other disinfectants used to control microbial contaminants in drinking water react with naturally occurring organic and inorganic matter in water. In other words, if you cannot control the organic stuff through regular treatment, you have to use disinfectants! The man who is currently the Chair of the Cave Creek Water Advisory Committee talked about THMS when Cave Creek Council was hearing about portable, mobile, treatment units.
THMS is believed to be cancer causing.
Arthur Gimson
(Lyn's note: I forwarded the COINS issue about closing the connection to Cave Creek Water due to concerns about the dirty water to our residents in Sentinel Rock.)
Brown water from Cave Creek is not new news for any of us in our neighborhood. Thanks for the update and your continued work to move this project forward. All I know is I don't even want Cave Creeks water to flush my toilets.
Lori W.
(Lyn's note: Lori is thanking Carefree, not me, for moving this forward.)
11:05 AM Arizona Local Time
COINS Info - 06-21-2019 - High quality of water is important for ALL Carefree residents
Residents of the Town of Carefree receive a large portion of their water supply through the Central Arizona Project (CAP) canal, which conveys water to many Arizona cities and towns from the Colorado River. Carefree’s share of the CAP water allocation is treated and delivered through both the City of Scottsdale and the Town of Cave Creek.
As a result of poor water quality coming through the Cave Creek system, the Carefree Water Company (CWC) was forced to place filters at the interconnect with Cave Creek to additionally filter the water. This type of additional filtration is NOT needed for water delivered by the City of Scottsdale. Scottsdale has invested in and maintained a state-of-the-art and award-winning water treatment campus, just north of the CAP canal near Pima Road, to ensure it delivers the highest quality, most reliable potable water to their customers. The recent water quality deficiency notices from the Town of Cave Creek, coupled with the continual cleaning and maintenance of clogged filters at the Cave Creek interconnect have forced the CWC to shut down the interconnect with Cave Creek.
Photo #1 - City of Scottsdale Water Treatment Campus
COINS Info - 06-21-2019 - High quality of water is important for ALL Carefree residents
Residents of the Town of Carefree receive a large portion of their water supply through the Central Arizona Project (CAP) canal, which conveys water to many Arizona cities and towns from the Colorado River. Carefree’s share of the CAP water allocation is treated and delivered through both the City of Scottsdale and the Town of Cave Creek.
As a result of poor water quality coming through the Cave Creek system, the Carefree Water Company (CWC) was forced to place filters at the interconnect with Cave Creek to additionally filter the water. This type of additional filtration is NOT needed for water delivered by the City of Scottsdale. Scottsdale has invested in and maintained a state-of-the-art and award-winning water treatment campus, just north of the CAP canal near Pima Road, to ensure it delivers the highest quality, most reliable potable water to their customers. The recent water quality deficiency notices from the Town of Cave Creek, coupled with the continual cleaning and maintenance of clogged filters at the Cave Creek interconnect have forced the CWC to shut down the interconnect with Cave Creek.
Photo #1 - City of Scottsdale Water Treatment Campus
Photo #2 - Interior of Chaparral Water Treatment plant in Scottsdale
This shutdown of the Cave Creek interconnect will ensure that residents on the Carefree water system receive the highest quality potable water available from the Scottsdale system. Unfortunately, there are Carefree residents within the Cave Creek distribution system that are dependent upon their troubled system for their water needs.
The CWC continually receives complaints about the quality of water being received from the Cave Creek system. A Carefree resident on the Cave Creek distribution system shared a photo of their recently installed home-filtration system with a clogged and soiled filter.
Photo #3 - Carefree resident's two-month-old home filtration filter
The CWC continually receives complaints about the quality of water being received from the Cave Creek system. A Carefree resident on the Cave Creek distribution system shared a photo of their recently installed home-filtration system with a clogged and soiled filter.
Photo #3 - Carefree resident's two-month-old home filtration filter
No Carefree resident should have to accept poor water quality when there is access to the high quality water provided through the City of Scottsdale. Problems such as this, coupled with other deficiencies in Cave Creek’s service and maintenance practices, is why Carefree seeks to bring those Carefree residents living in the Cave Creek service area into the CWC.
C.O.I.N.S.
Carefree/Cave Creek Water Update-Carefree seeks collaboration, NOT divisiveness
Carefree/Cave Creek Water Update
Carefree seeks collaboration, NOT divisiveness
The Town of Carefree has an undisputed history of working collaboratively with all of our municipal neighbors including the Town of Cave Creek. In particular, Carefree has helped Cave Creek offset intersection improvement costs located wholly within the Town of Cave Creek, helped pay outdoor recreational amenities within Cave Creek including the Black Mountain trailhead plans and the Spur Cross Ranch Preserve, untangled Cave Creek’s municipal court situation while saving Cave Creek money, and, most importantly, assisted Cave Creek in 2005 in the condemnation of the privately held Cave Creek Water Company.
How did Carefree assist Cave Creek’s condemnation?
Over 500 water accounts on the Town of Cave Creek water distribution system are located within the municipal boundaries of Carefree. A municipal condemnation can only occur within the boundaries of the condemning municipality, the condemnation cannot overlap into adjacent municipalities without their consent. In 2005, Carefree agreed to not legally contest Cave Creek’s condemnation of these accounts located within Carefree and, as a result, eliminated significant legal costs and time delays for the Town of Cave Creek. In return, Cave Creek agreed that Carefree would preserve the right to acquire these accounts in the future and could integrate them into Carefree’s water system without a litigious event occurring. This specific desire was emphasized when Cave Creek’s legal counsel on August 1, 2005 presented the agreement between the communities to an enthusiastic Cave Creek Council which unanimously approved the agreement.
So what is the current status of Carefree’s acquisition?
Over 18 months ago, Carefree expressed its intent to begin the process and execute the terms of the agreement and fold these external accounts into the Carefree Water Company distribution system. Last summer, hundreds of Carefree residents attended open forums to further express their desire to be incorporated into the Carefree system and be represented by their elected officials. This past winter, Carefree’s leadership again attempted to meet with Cave Creek’s leadership to start an open dialogue to begin the acquisition process. However, Cave Creek refused to meet and instead demanded that Carefree file the legal notice (a condemnation action) to begin the acquisition process.
During this time period Cave Creek’s tactics have included:
.
Carefree seeks collaboration, NOT divisiveness
The Town of Carefree has an undisputed history of working collaboratively with all of our municipal neighbors including the Town of Cave Creek. In particular, Carefree has helped Cave Creek offset intersection improvement costs located wholly within the Town of Cave Creek, helped pay outdoor recreational amenities within Cave Creek including the Black Mountain trailhead plans and the Spur Cross Ranch Preserve, untangled Cave Creek’s municipal court situation while saving Cave Creek money, and, most importantly, assisted Cave Creek in 2005 in the condemnation of the privately held Cave Creek Water Company.
How did Carefree assist Cave Creek’s condemnation?
Over 500 water accounts on the Town of Cave Creek water distribution system are located within the municipal boundaries of Carefree. A municipal condemnation can only occur within the boundaries of the condemning municipality, the condemnation cannot overlap into adjacent municipalities without their consent. In 2005, Carefree agreed to not legally contest Cave Creek’s condemnation of these accounts located within Carefree and, as a result, eliminated significant legal costs and time delays for the Town of Cave Creek. In return, Cave Creek agreed that Carefree would preserve the right to acquire these accounts in the future and could integrate them into Carefree’s water system without a litigious event occurring. This specific desire was emphasized when Cave Creek’s legal counsel on August 1, 2005 presented the agreement between the communities to an enthusiastic Cave Creek Council which unanimously approved the agreement.
So what is the current status of Carefree’s acquisition?
Over 18 months ago, Carefree expressed its intent to begin the process and execute the terms of the agreement and fold these external accounts into the Carefree Water Company distribution system. Last summer, hundreds of Carefree residents attended open forums to further express their desire to be incorporated into the Carefree system and be represented by their elected officials. This past winter, Carefree’s leadership again attempted to meet with Cave Creek’s leadership to start an open dialogue to begin the acquisition process. However, Cave Creek refused to meet and instead demanded that Carefree file the legal notice (a condemnation action) to begin the acquisition process.
During this time period Cave Creek’s tactics have included:
.
- The retention of an out-of-state attorney whom has generated legally conflicting and frivolous filings with Maricopa County Superior Court designed to create delays which breach the agreement and will create significant legal costs to both Carefree and Cave Creek.
- - Retained a political consulting firm to develop a misleading political survey of Carefree residents using Cave Creek taxpayers funds and ignoring the hundreds of Carefree residents who have voiced their desire to be represented by Carefree elected officials and not Cave Creek.
- - Used Cave Creek taxpayer funds to create social media campaigns and videos in an attempt to once again mislead residents.
From COINS:
IMPORTANT WATER ACQUISITION UPDATE
In January 2019, pursuant to the desire of hundreds of Carefree residents, the Carefree Town Council filed documents to begin the process to acquire the water accounts located in the Town of Carefree but served by the Town of Cave Creek. This acquisition process is outlined in a long standing, mutually agreed upon Intergovernmental Agreement (IGA) between our communities.
Carefree attempted on numerous occasions to seek resolution; however, Cave Creek refused to communicate regarding this matter. Instead, Cave Creek requested Carefree to proceed by using the more formal condemnation process outlined in the IGA. This agreed upon process included a negotiation period followed by mandatory binding arbitration if no acceptable purchase price could be agreed upon. Carefree filed the requested condemnation documents, but Cave Creek declined to enter into negotiations.
This past spring, the Town of Cave Creek filed a motion with Maricopa County Superior Court to dismiss the condemnation as inappropriately filed and stay the arbitration called for in the IGA. This week the Superior Court rejected that claim and ruled in Carefree’s favor (click here to see attached court order) Furthermore, the Honorable Judge Cynthia Bailey agreed that the IGA outlines the process for the acquisition, that Carefree followed that process in our condemnation filing, and that all issues relative to such acquisition are subject to review of the arbitrators.
Both communities have already reviewed and have completed the selection of the three arbitrators. Based upon Judge Bailey’s recent decision, the acquisition will now move forward in the most expedient manner possible. As more information becomes available, the Town will share additional updates.
Carefree UCFD/Cave Creek
Carefree Truth
Issue #788, November , 2019
At Call to the Public, James Dove explained that he and his wife moved into the Carefree Foothills subdivision, which is serviced by Cave Creek Water, a year ago.
James Dove
Photo by Herbert Hitchon
He wanted to address the water quality and the pace at which the acquisition rights are happening. The Town of Cave Creek's obligation to disclose the water testing results from the Arizona Department of Environmental Quality (ADEQ) is helpful but extremely disturbing. They receive monthly letters stating that there are potential long term health effects such as liver or kidney problems, nervous system effects, and it may lead to an increased risk of cancer. There are certain people in the community with weakened immune systems who are much more susceptible to these water contaminates.
After moving here, they learned that the water could be the greatest threat to their long term health. He and his wife spent a lot of money for a high end water system, yet they still have issues and concerns with the water coming from their taps. In late September, they found gray cloudy water with a film of some substance floating on the surface coming out of their taps. They contacted Cave Creek, who admitted there was a break in the water line near their house. They were instructed to open their taps and let the water run for 30 minutes. They did not begin to see clear water for over 2 weeks.
On October 24th, the Doves called for servicing on their filtration system. They had seen little particles floating on top of the water in their reverse osmosis system. Extensive troubleshooting revealed murky water in the tank where the water enters the home. The filter was filled with dirt and floating particles of a white slimy substance. Mr. Dove was concerned for his family and neighbors from the potential health risks these contaminates pose.
He read the reports sent out on this topic. He read all 105 pages of the water report that talked about the potential purchase of those water rights. To paraphrase from that: Due to the age of the system, challenges associated with performing routine maintenance, poor construction quality and the general condition of the infrastructure, it is likely to be below average water. He assumed that the Council was aware that Carefree Foothills is among the oldest in the acquisition proposal. "Very simply, we're entitled to have clean and safe water for our community, our family, friends, everyone here." He appreciated the Council's efforts in this endeavor.
https://vimeo.com/371785633
Mayor Les Peterson responded, "There is no project that is taking more time. We are pushing it as fast as we can. We are running into delays from Cave Creek, and they're throwing every roadblock that the can. We will not be deterred. Hang in there. Please do the best that you can. We recognize and we agree 100% with it".
https://vimeo.com/371796010
Vice Mayor John Crane read a Public Service announcement related to what James Dove had said. Customers of Cave Creek Water in Carefree and Cave Creek can see a letter from Cave Creek in their October water bill. "It will give you pause."
The letter says, "On August 30, 2019, the Town of Cave Creek (Town) learned that the running annual average for total trihalomethanes (TTHM) had exceeded the maximum containment level in the 3rd quarter of 2019." "You DO NOT need to use an alternative (e.g. bottled) water supply. You DO NOT need to boil your water for consumption. However, if you have specific health concerns, consult your doctor. This is not an emergency and your water remains safe to drink and use in your daily life." "The levels of TTHM detected do not pose an immediate risk to your health. Some people who drink water containing TTHMs in excess of the MCL over many years may experience problems with their liver, kidneys, or central nervous system, and may have an increased risk of getting cancer. If you have a severely compromised immune system, have an infant, are pregnant, or are elderly, you may be at an increased risk and should seek advice from your health care providers about drinking this water."
Vice Mayor Crane said the letter goes on to tell you what they are doing, and says to share this information with those who drink the water on this system. The Vice Mayor encouraged everyone to do so, saying you owe it to your friends and neighbors who drink this water to let them know the potential risk involved. Copies of the letter were available for the audience to take home.
It is interesting to note that if you go onto their website, this letter isn't posted there. The Vice Mayor could find letters from 2018, but nothing from 2019 or the 2 letters that proceeded this letter.
Mayor Peterson added, "This is a serious problem". That's one of the reasons Carefree is trying their best to bring all those Carefree residents who are on that system into the Carefree Water system, "and we won't rest until we do that".
https://vimeo.com/371956240
Lyn Hitchon
Carefree Truth
Issue #800, December 13, 2019
During Call to the Public, Nancy Keller read the following letter:
Date: December 3, 2019
To: Carefree Town Council
"As residents of Carefree, we are among those who receive water from Cave Creek. Approximately 20% of Carefree residents are receiving Cave Creek water which does not meet the Arizona Department of Environmental Quality (ADEQ) standards and for the past year has exceeded the maximum contaminant level for trihalomethanes. For the past nine months, we have received quarterly notices from Cave Creek Water company advising us of the tainted water supply and the negative health effects. The most recent Cave Creek Water company notice stated, 'Some people who drink water containing trihalomethanes in excess of the maximum contaminate level may experience problems with their liver, kidneys, or central nervous system, and may have an increased risk of getting cancer. If you have a severely compromised immune system, have an infant, are pregnant, or are elderly, you should seek advice from your health care providers about drinking this water'. All residents of Carefree are entitled to the same level of service which includes water quality."
"Due to a lack of regular maintenance, much of the Cave Creek Water Company infrastructure (fire hydrants, valves, etc.) is not in compliance with safety standards. We would ALL be in danger should a fire occur in an area serviced by a non-functioning fire hydrant greatly impacting Fire Department efforts to contain a fire."
"If not addressed, Carefree residents and their home values may be divided into two groups based upon their water source. Those supplied by Cave Creek Water could potentially see their home values drop significantly. Ultimately this drop in home values for 20% of Carefree will impact ALL residents of Carefree’s home values."
"The process of Carefree's acquiring the 526 residences is complicated and a sensitive subject for both Cave Creek and Carefree. We commend those who have been diligently working on this issue and appreciate the complexities involved. As Carefree residents, we support the process of selecting the water storage site based on engineering requirements (elevation, proximity to the water main, minimal disruption to the community, etc.), overall cost, etc. The seriousness of the situation warrants a well thought out and investigative process."
"We respect the concerns of the residents and at the same time would hope for their understanding of the critical nature of the water supply to their fellow members of the Carefree community."
Sincerely,
Nancy Keller
Jim Whitmer
Eileen Jones
Don Szibdat
Issue #800, December 13, 2019
During Call to the Public, Nancy Keller read the following letter:
Date: December 3, 2019
To: Carefree Town Council
"As residents of Carefree, we are among those who receive water from Cave Creek. Approximately 20% of Carefree residents are receiving Cave Creek water which does not meet the Arizona Department of Environmental Quality (ADEQ) standards and for the past year has exceeded the maximum contaminant level for trihalomethanes. For the past nine months, we have received quarterly notices from Cave Creek Water company advising us of the tainted water supply and the negative health effects. The most recent Cave Creek Water company notice stated, 'Some people who drink water containing trihalomethanes in excess of the maximum contaminate level may experience problems with their liver, kidneys, or central nervous system, and may have an increased risk of getting cancer. If you have a severely compromised immune system, have an infant, are pregnant, or are elderly, you should seek advice from your health care providers about drinking this water'. All residents of Carefree are entitled to the same level of service which includes water quality."
"Due to a lack of regular maintenance, much of the Cave Creek Water Company infrastructure (fire hydrants, valves, etc.) is not in compliance with safety standards. We would ALL be in danger should a fire occur in an area serviced by a non-functioning fire hydrant greatly impacting Fire Department efforts to contain a fire."
"If not addressed, Carefree residents and their home values may be divided into two groups based upon their water source. Those supplied by Cave Creek Water could potentially see their home values drop significantly. Ultimately this drop in home values for 20% of Carefree will impact ALL residents of Carefree’s home values."
"The process of Carefree's acquiring the 526 residences is complicated and a sensitive subject for both Cave Creek and Carefree. We commend those who have been diligently working on this issue and appreciate the complexities involved. As Carefree residents, we support the process of selecting the water storage site based on engineering requirements (elevation, proximity to the water main, minimal disruption to the community, etc.), overall cost, etc. The seriousness of the situation warrants a well thought out and investigative process."
"We respect the concerns of the residents and at the same time would hope for their understanding of the critical nature of the water supply to their fellow members of the Carefree community."
Sincerely,
Nancy Keller
Jim Whitmer
Eileen Jones
Don Szibdat
Nancy Keller
Photo by Herbert Hitchon
https://vimeo.com/377421036
During Current Events, Vice Mayor John Crane said that customers of the Cave Creek Water Company received yet another legally required quarterly letter from the Town of Cave Creek about their water, sent with their December water bill, the 4th this year. It is the same letter over and over. This dovetails with Nancy Keller's stated concerns.
The annual level of Total Organic Compounds (TOCs) and trihalomethanesare above the allowable limit. The letter states, “…drinking water containing these byproducts (trihalomethanes) in excess of the Maximum Contaminant Level (MCL) may lead to adverse health effects, liver, or kidney problems, or nervous system effects, and may lead to an increased risk of getting cancer.” They have twice reported that their water treatment process is not as efficient as is required. All agree to that.
In that letter, The Town of Cave Creek asked to make it known to everyone on the water system, but they don't care enough to put it on their Town website. If you go to the website, it is not posted. He said the Town of Carefree will make it known. Copies of the water letter from Cave Creek were available for pick-up at the front of the room.
https://vimeo.com/377661457
Lyn Hitchon
Photo by Herbert Hitchon
https://vimeo.com/377421036
During Current Events, Vice Mayor John Crane said that customers of the Cave Creek Water Company received yet another legally required quarterly letter from the Town of Cave Creek about their water, sent with their December water bill, the 4th this year. It is the same letter over and over. This dovetails with Nancy Keller's stated concerns.
The annual level of Total Organic Compounds (TOCs) and trihalomethanesare above the allowable limit. The letter states, “…drinking water containing these byproducts (trihalomethanes) in excess of the Maximum Contaminant Level (MCL) may lead to adverse health effects, liver, or kidney problems, or nervous system effects, and may lead to an increased risk of getting cancer.” They have twice reported that their water treatment process is not as efficient as is required. All agree to that.
In that letter, The Town of Cave Creek asked to make it known to everyone on the water system, but they don't care enough to put it on their Town website. If you go to the website, it is not posted. He said the Town of Carefree will make it known. Copies of the water letter from Cave Creek were available for pick-up at the front of the room.
https://vimeo.com/377661457
Lyn Hitchon
Water IGA 2005 Cave Creek Council meeting
Discussion is on pgs. 9-13
https://cavecreek.civicweb.net/filepro/documents/9211?preview=9286
Discussion is on pgs. 9-13
https://cavecreek.civicweb.net/filepro/documents/9211?preview=9286
Important Water Meeting Water Meeting
Tuesday, February 9, 2021, 4:00 p.m.
On February 9th at 4 PM a public meeting of the Carefree Utility Community Facility District (UCFD) will be held via Zoom to provide an update to our citizens on Carefree’s acquisition of those neighborhoods served potable water by the Town of Cave Creek. A discussion on the scope of the project, next steps, costs, benefits and impacts on water rates will be included. The overarching goal of this water integration will be to ensure that all Carefree residents have representation over their water resources while providing for the greatest public good.
Here’s the access to the UCFD meeting at 4 PM on February 9th.
Please copy and paste the link provided below into your web browser to attend:
Below is a more detail discussion and some background on this topic.
Water Acquisition Update
As both the Town of Carefree and Carefree Water Company have done throughout the water acquisition process, incremental updates are being provided to keep Carefree residents and businesses informed as to developments as they occur. If you are new to this discussion, the “Background” and “Importance of Acquisition” sections below, will provide you with the necessary contextual information.
Current Status
As called for in an Intergovernmental Agreement (“IGA”), Carefree initiated a condemnation case in Superior Court in January 2019 to acquire the Cave Creek water assets serving Carefree residents, known as the “Carefree Service Area.” The IGA provided that if the parties could not agree on the compensation Carefree would pay Cave Creek for the acquisition, the matter would be submitted to a panel of Arbitrators who would decide the amount of compensation, amongst other related issues. The arbitration hearing began the last week of October, 2020 and concluded the first week of November, 2020, and the process was completed after extensive pre- and post-hearing briefings on both sides.
On Friday, December 4th, the Arbitration Panel (the “Panel”) released its “Arbitrators’ Decision on the Merits” indicating that the just compensation due to Cave Creek for the condemned assets would be $1,464,593.00, equal to Carefree’s appraisal of the assets. Following additional briefing, the Panel issued its Partial Final Award on January 14, 2021, in which a determination on attorney fees, expert fees, litigation expenses, and other costs was rendered in favor of Carefree which will be deducted from the just compensation of $1,464,593.00
Prior to the issuance of the Partial Final Award and since that time, both communities have been working on a settlement agreement designed to achieve finality, cooperation between the communities moving forward, and expeditious integration of the Carefree Service Area into the Carefree Water system. Ultimately, once both parties confirm the terms of the settlement agreement, the final amount of the payment will be determined.
Background
In 2005, Cave Creek wanted to condemn the privately owned water company servicing portions of both the Towns of Carefree and Cave Creek. As a cooperative neighboring community, Carefree agreed to permit Cave Creek to include the Carefree portion of the service territory as part of that condemnation. Without this permission, Cave Creek would not have been able to condemn the water assets located within Carefree. In return, Carefree and Cave Creek entered into a contractual arrangement called an Intergovernmental Agreement which permitted Carefree to subsequently acquire those water assets servicing portions of Carefree. In January 2019, Carefree’s acquisition process was initiated after hundreds of Carefree residents raised concerns about the water service being provided by the Cave Creek system.
Importance of Acquisition
Water resources in the Desert Southwest are critical to a community’s vitality and sustainability. This is why all local communities seek to maintain control and have representation over this limited natural resource. The 2005 Intergovernmental Agreement between Carefree and Cave Creek allowed Cave Creek to acquire the water utility system from a private water provider while also preserving Carefree’s right to later acquire the water assets serving properties within Carefree.
Today, the Carefree residents that are served by the Cave Creek system do not have a voice in the representation that controls their water resources. This acquisition will ensure that all Carefree residents have the same high quality water, that they share in the election of representatives that control these limited resources, and that Carefree’s economic and community interests are not impacted by external entities.
Tuesday, February 9, 2021, 4:00 p.m.
On February 9th at 4 PM a public meeting of the Carefree Utility Community Facility District (UCFD) will be held via Zoom to provide an update to our citizens on Carefree’s acquisition of those neighborhoods served potable water by the Town of Cave Creek. A discussion on the scope of the project, next steps, costs, benefits and impacts on water rates will be included. The overarching goal of this water integration will be to ensure that all Carefree residents have representation over their water resources while providing for the greatest public good.
Here’s the access to the UCFD meeting at 4 PM on February 9th.
Please copy and paste the link provided below into your web browser to attend:
- https://us02web.zoom.us/j/86921484437?pwd=emlKUDdCMS9wOWM5WjIzTDh5OUdTdz09
- Passcode: 206277
- By phone: 669-900-6833
Below is a more detail discussion and some background on this topic.
Water Acquisition Update
As both the Town of Carefree and Carefree Water Company have done throughout the water acquisition process, incremental updates are being provided to keep Carefree residents and businesses informed as to developments as they occur. If you are new to this discussion, the “Background” and “Importance of Acquisition” sections below, will provide you with the necessary contextual information.
Current Status
As called for in an Intergovernmental Agreement (“IGA”), Carefree initiated a condemnation case in Superior Court in January 2019 to acquire the Cave Creek water assets serving Carefree residents, known as the “Carefree Service Area.” The IGA provided that if the parties could not agree on the compensation Carefree would pay Cave Creek for the acquisition, the matter would be submitted to a panel of Arbitrators who would decide the amount of compensation, amongst other related issues. The arbitration hearing began the last week of October, 2020 and concluded the first week of November, 2020, and the process was completed after extensive pre- and post-hearing briefings on both sides.
On Friday, December 4th, the Arbitration Panel (the “Panel”) released its “Arbitrators’ Decision on the Merits” indicating that the just compensation due to Cave Creek for the condemned assets would be $1,464,593.00, equal to Carefree’s appraisal of the assets. Following additional briefing, the Panel issued its Partial Final Award on January 14, 2021, in which a determination on attorney fees, expert fees, litigation expenses, and other costs was rendered in favor of Carefree which will be deducted from the just compensation of $1,464,593.00
Prior to the issuance of the Partial Final Award and since that time, both communities have been working on a settlement agreement designed to achieve finality, cooperation between the communities moving forward, and expeditious integration of the Carefree Service Area into the Carefree Water system. Ultimately, once both parties confirm the terms of the settlement agreement, the final amount of the payment will be determined.
Background
In 2005, Cave Creek wanted to condemn the privately owned water company servicing portions of both the Towns of Carefree and Cave Creek. As a cooperative neighboring community, Carefree agreed to permit Cave Creek to include the Carefree portion of the service territory as part of that condemnation. Without this permission, Cave Creek would not have been able to condemn the water assets located within Carefree. In return, Carefree and Cave Creek entered into a contractual arrangement called an Intergovernmental Agreement which permitted Carefree to subsequently acquire those water assets servicing portions of Carefree. In January 2019, Carefree’s acquisition process was initiated after hundreds of Carefree residents raised concerns about the water service being provided by the Cave Creek system.
Importance of Acquisition
Water resources in the Desert Southwest are critical to a community’s vitality and sustainability. This is why all local communities seek to maintain control and have representation over this limited natural resource. The 2005 Intergovernmental Agreement between Carefree and Cave Creek allowed Cave Creek to acquire the water utility system from a private water provider while also preserving Carefree’s right to later acquire the water assets serving properties within Carefree.
Today, the Carefree residents that are served by the Cave Creek system do not have a voice in the representation that controls their water resources. This acquisition will ensure that all Carefree residents have the same high quality water, that they share in the election of representatives that control these limited resources, and that Carefree’s economic and community interests are not impacted by external entities.