Water tanks create controversy at council meeting
Council expediency, transparency questioned by residents
by Brian DiTullio

CAVE CREEK – Water tanks, WIFA loans, Continental Mountain development and the topic of town council transparency made for a late night at Cave Creek Town Council.

The Aug. 20 regular meeting, which lasted until just after 11 p.m., became tense toward the end as the council discussed a contract for design services for various water system improvements–particularly those that could benefit Continental Mountain development.

Utilities Manager Jessica Marlow presented the item, which includes two concrete water tanks, one at the town’s Neary site and one near Echo Canyon Drive and Rockaway Hills Road. Both locations currently house a water tank. The plan calls for the existing tanks to be demolished and replaced with larger ones. The design cost is listed as $1,363,319.

Mike Worlton, water resources manager for the contracting firm RBF, presented the designs to council, noting the old tanks are in need of repair and the town needs newer, larger tanks. The Neary site would hold a 1.1 million‑gallon tank and the Rockaway Hills site a 2 million‑gallon tank.

Worlton added the planned improvements would include upgrades to the town’s water treatment plant, improving water quality, in addition to adding increased storage capacity.

Councilman Tom McGuire asked if those improvements would serve the town through build‑out. “We’re anticipating doubling Cave Creek’s population,” he said.

Marlow replied the tanks would meet build‑out needs.

Councilwoman Grace Meeth then asked if the potential development at Continental Mountain had been considered in the plan, to which Marlow said “no,” noting Rockaway Hills is the town’s highest tank elevation and the site can support 70 percent of Cave Creek customers through simple gravity flow.

“The tank is necessary regardless of the development up there,” Marlow said.

The discussion then was opened to the public, and Cave Creek resident Terry Zerkle addressed council regarding the limited number of people notified about the project ahead of time, adding the potential development at  Continental Mountain became public only because of a neighborhood meeting held by town staff. He stressed the council has not done enough to make the public aware of what’s going on.

“This is a major, major policy action,” he said.

Zerkle was followed by Nan Byrne, who said she wasn’t invited to that neighborhood meeting, even though she lives nearby. Byrne expressed fears the town was negotiating a development deal without telling “anyone.”

“I don’t like negotiating with the county about using Cave Creek water,” she said, also asking why town council hasn’t been “open” about the discussions so far.

The Continental Mountain property in question lies outside the town of Cave Creek.

Mayor Vincent Francia at that point said to Byrne in a loud voice, “Whoever it is who told you this is being untruthful.

Anyone who told you this has their own agenda. If something happens, it’ll come before council.”

Byrne then asked Francia not to “scold” her. “I know nothing about that tank and I live right around the corner.”

Zerkle told The Desert Advocate last week that Town Manager Usama Abujbarah revealed negotiations with Sienna Corporation about running water to the company’s proposed development on Continental Mountain, which would fall under the county planning department.

Additionally, Susan Demmitt, a land‑use consultant working with Sienna, said she is working on a pre‑annexation agreement with Cave Creek in anticipation of potential annexation in the future.

Abujbarah confirmed discussions with Sienna last week as well, but said nothing was “a done deal” and that the matter would have to first come before town council.

On this point, Zerkle quoted town code in a letter to McGuire dated Aug. 14: “Section 31.25

(I) of the Town Code states: Policy‑making prohibited. The Town Manager shall not exercise any policy‑making or legislative functions nor attempt to commit or bind the Town Council to

any action, plan, or program requiring the official action of the Town Council.”

At the meeting, when finally brought back to council for a vote, McGuire’s statement on the comments made was, “Other issues should be discussed if there’s action in those areas.”

Abujbarah said in the future he would attempt to include more residents in the neighborhood meetings, but that his staff was limited by time.

Vice Mayor Gilbert Lopez pointed out council knew the water system needed improvement when it was acquired, and noted the town hasn’t tried to raise rates yet.

The vote to approve the water system improvements design was 7‑0.

Council then turned to the actual construction contract, valued at an additional $5.3 million.

After a brief discussion over how deep the tank could be buried to minimize its impact to the neighborhood, the discussion was again opened to the public.

“We’re sacrificing transparency for expediency,” Zerkle said. “That’s not good public policy.”

McGuire stated he doesn’t see a problem at this point, while Councilwoman Grace Meeth gave “health, safety and welfare issues” as the reason for such quick action.

Councilman Dick Esser, however, indicated he would vote “no,” citing the expediency factor.

“We limped along for years,” Esser said. “We never had to turn the water off; it wasn’t brown.”

Esser pointed out the council had just approved a multi‑million‑dollar Water Infrastructure Finance Authority loan for the new wastewater treatment plant, plus $6.6 million for these particular improvements, and noted the council has been told more money for repairs will be needed.

“I think we’re running out of money,” Esser said.

Francia then said three water outages this past summer that required the Town of Carefree to bail Cave Creek out created a sense of urgency and called for the vote. The issue passed 6‑1, with Esser dissenting.