Cave Creek to take over troubled Sabrosa Water Co.
by Kathleen Stinson

NEW RIVER/CAVE CREEK– Sabrosa Water Co. customers may soon see a change in management  for the fourth time in the past seven years.

When the New River water system ceased to operate in 2000 and Sabrosa’s owner Keith J. Morris disappeared, the state Corporation Commission assign ‑ed management and operation of the company to Citizens Utilities Co. Subsequently, when Arizona American Water acquired Citizens, AAW took over operation and maintenance of the Sabrosa system.

In April 2000, the Maricopa County Environmental Services Department inspected the system after receiving complaints from customers who had been without water for several days.

MCESD issued a notice immediately after the inspection directing Sabrosa customers to find an alternative source of water or to boil water, due to the presence of “total Coliform Bacteria contamination.”

The cost of repairing Sabrosa’s failing infrastructure resulted in a significant negative financial impact on Arizona American, which had expected the troubled system to be sold–relieving AAW of its management duties. However, the owner’s disappearance blocked any sale and AAW eventually asked for commission approval to resign as operator. The commission next assigned Global Water Resources to operate the company.

With the sale of Cave Creek Water Co. to the Town of Cave Creek, AAW may again take over management of Sabrosa. However, the parties have not yet come to an operating agreement. A settlement agreement between the town and Global Water Resources in the town’s condemnation suit to acquire CCWC was signed Monday.

As part of the negotiations, company spokesman Paul Walker said Global insisted Cave Creek take over the Sabrosa Water Co. as a condition to the settlement.

Sabrosa Water customer Michael Wright said he has no objections to the transfer of Sabrosa’s management to the town.

“Anything is better than what we had in the past – we had nothing (when the owner disappeared),” Wright told The Desert Advocate. “With Cave Creek we can call someone; before we were left fending for ourselves.”

One of three Sabrosa system wells is located on Wright’s property. When the outages occurred and the owner disappeared, Wright and a few other neighbors got together to fix the well but ended up turning to the community and the commission for help.

The whole community “really stepped up when we ran into trouble and everyone in the community helped,” he said. Daisy Mountain Fire District and the Army National Guard hauled water day and night in some cases to water livestock, plus providing bottled drinking water.

In December of 2006, Global asked for a rate increase to remedy Sabrosa Water’s inadequate water supply, marginal to poor water quality, an aging and failing infrastructure, and legal and financial problems as a result of ownership abandonment, as stated in its rate increase application with the corporation commission.

Walker said a recent Sabrosa water test found 33 parts‑per‑billion arsenic.

The federal standard which the state enforces is 10 ppb arsenic. In general, all Arizona water companies must be in compliance by the end of 2007.

Wright said customers have not had any water outage problems since the interim managers took over. However, the once 92‑customer water system has dwindled to 51 customers.

“I tell Sabrosa customers do not drink the water–and if you have a well, get it tested,” Wright said, adding most customers only use the Sabrosa water for plants and livestock.