“It
doesn’t seem right that someone (DHW’s prior owners)
could get off scot‑free and take millions
of dollars to the bank,” said Commissioner Mundell.
“Do we need to go to the legislature” and change
the law?
Commission
staff noted the OSC was filed against Desert Hills
Water Co. and not the individual owners.
To
the extent the company no longer exists, there is
no mechanism to revive those claims and convert
them to claims against the prior owners.
Mayes
reminded the commissioners of a very different scene
last year when the commission hearing room was packed
with Desert Hills customers clamoring for help.
But
by last week, the scene had
changed: No customers attended. The few The Desert
Advocate reached later said they
never received a notice of the
meeting. Town Manager Usama Abujbarah peeked his
head in for a moment prior to the meeting and then
left. No town council members attended.
“(I
am reminded) of the dozens of people who couldn’t
take showers or prepare meals who were just desperate
because the (DHW) owner was not acting in good faith
and not following the rules,” Mayes said. “I hope
the new owner carries out its promise.”
Commissioner
Gleason pointed out that if the commission did not
approve the transfer, Desert Hills Water would be
left a small company sitting by itself, but now
it will be part of a regional plan.
“This
is a hard vote for me.
I
worry deeply about leaving these customers without
a vote,” Mayes said. “The town has clearly improved
the water service and done what the former owner
refused to do. It’s been a long road for the DHWC.”
Mayes
added, although it appears the former owners of
Desert Hills Water cannot be held accountable for
their actions, “we will look into it further.”
Commissioner
Pierce said he had similar concerns but customers
will have a much brighter future with Cave Creek.
“It’s
a shame the person or persons responsible for making
sure we had water–and who didn’t
take responsibility– became wealthy and we got the
short end of the stick,” said Rich
Goldstein, a Desert Hills customer, in an interview
later in the week.
Approval
of the assets transfer is contingent upon the town
crediting about 189 Desert Hills customers their
minimum monthly charges for water service during
the period June through September, as stated in
the judge’s recommended order adopted by the commission.
The
town has 30 days from closing the transfer transaction
to make the credits. After that, the Certificate
of Convenience and Necessity issued Desert Hills
Water Co. will be canceled.
The
commission amended the judge’s recommendation by
inserting the word “permanent” in each reference
to a citizens water advisory committee.
Cave
Creek has committed to forming a citizens water
advisory board composed of Deseret Hills customers,
who live outside the town’s boundaries, and Cave
Creek Water Co. customers. Applications for those
positions are currently being accepted.
“There
is no ironclad guarantee that a citizens advisory
committee could not be disbanded next year,” stated
Mayes, which led to discussion regarding the amendment.
“I am not convinced it is an adequate substitute
for (political) representation.”
The
commission’s approval of the transfer relies on
promises made by the town to the commission.
“Based
upon the commitments made by the town and our good‑faith
belief that they will be
fulfilled, we approve this application,” as stated
in the judge’s recommendation adopted by the commission.
Cave
Creek counsel Marvin Cohen told commissioners the
town is anxious to make capital improvements to
the Desert Hills system and has applied for a $6.6
million Water Infrastructure Finance Authority loan
to that end.
