Cave Creek approves water company purchase
Town council unanimously approves $2.5 million buy
by Jason Stone

CAVE CREEK - Cave Creek is officially in the water business.

After six months of quiet negotiations, the town council on Sept. 12 unanimously approved purchasing the embattled Desert Hills Water Company for $2.5 million. The council plans to immediately serve the 1,600 residents in the area.

"This is a bold and positive move for Cave Creek's future," said Vice Mayor Dick Esser, who voted to purchase the company after council met for an executive session and a public hearing. "This preserves and protects the future of the town."

Town manager Usama Abujbarah had been in negotiations with the company since March, but the sides did not agree on terms until last week. Council approved the deal in less than an hour at a quickly-called special meeting.

"Are we getting into something we've never done before? You bet," Councilman Thomas McGuire said. "Will it be good for us? I think so."

Cave Creek is hoping to annex a parcel of land west of town to 24th Street and Carefree Highway. Buying the water company, which serves homes there, will now give the town water for the area if the Arizona State Land Department approves the town's annexation application.

"The annexation could go to Phoenix and if that were to occur, we can deal with Phoenix," Mayor Vincent Francia said.

One resident currently served by Desert Hills spoke against the purchase. Rich Goldstein was on of the residents who were without water for six hours each morning over a four-month period because of a company pumping problem.

Goldstein accused DHW Vice President Mary Beth Rowland of mismanagement, and told the council it would be making a mistake to buy the company.

"I had to drive an extra two hours to work each day to take a shower," Goldstein said. "I lost 240 hours of my life because of this mismanagement. I am appalled that she stands to profit at my expense."

Rowland was also in negotiations to sell the company to Global Water Co., the firm that purchased Cave Creek Water in 2005 after it appeared Cave Creek Water had a deal with the town. Hoping not to be burned twice, Abujbarah aggressively pursued the deal with Rowland to beat Global to the punch.

The town is also in condemnation proceedings to acquire Cave Creek Water. Council members said the cost of condemnation would increase if Global had bought Desert Hills and that was a factor in buying Desert Hills immediately.

"Do we want to pay now, or pay more later?" McGuire asked.

The purchase of the water company, which should close on Sept. 15, is the first utility for the town. In 2002, voters approved the town to get into the utility business, and in May 2005 voters passed a $25 million bond for water purchases.

After voting for the purchase, Francia told Goldstein not to worry about the quality of service.

"The services you'll get are the same services our own residents would expect," Francia said.

Reach the reporter at jason@thedesertadvocate.com.