Cave Creek approves $10,000 museum funding; water crisis presentation reveals $1.2 million annual infrastructure losses

Cave Creek Water Advisory Committee Warns Council of $1.2 Million Annual Utility Loss as Museum Receives Funding

The Cave Creek Town Council approved $10,000 in funding for the Cave Creek Museum on April 27, 2016—a measure passed unanimously and celebrated by community members and museum volunteers. But the meeting's true weight lay in a comprehensive presentation by the town's water advisory committee, which detailed systemic failures in the water treatment and distribution system that have consumed funds for years and left the town vulnerable to supply emergencies.

The presentation, which consumed roughly an hour of council time, revealed failures so extensive that Dr. Bill Allen, the committee chair, described the situation as one requiring urgent intervention. The committee offered not only diagnosis but a roadmap for repairs—yet council took no immediate action, leaving staff to develop specific proposals for future consideration.

Cave Creek Museum Funding Approval

The museum vote proceeded without controversy. Ron Roberts, vice president of the Cave Creek Museum board, opened the presentation with historical perspective. "In 1776, we were becoming a nation," he said. "Spain was putting its hold on the town of San Francisco. One hundred years later or so comes Cave Creek. We've come a long way since then. There's a lot of history here that is around here to preserve and we're doing a very good job of that."

West Cooper, a Cave Creek resident and museum member, highlighted the centerpiece of the museum's recent work: the Golden Reef stamp mill restoration. A volunteer group—calling itself the "Dream Team"—had contributed over 9,000 hours to restore the mill over four years.

"The golden Reef stamp Mill is the only active working stamp Mill—ten mil stamp—in Arizona. The mill is also the only unit in the country working in the area of the original mining district, about 5 to 2 miles from its original site on Mountain." — West Cooper, Cave Creek resident and museum member

The museum reported 2,479 visitors from October through December 2014, with 35 percent from Arizona and the remainder from other states and countries. The $10,000 appropriation would support operations, supplies, and exhibit upgrades. Councilman Spitzer, however, signaled a condition: "Last two times this type of expenditures come up I've asked for some sort of information from either the town or from the organization themselves on what the money is being spent for and some sort of ideas on the finances of the organization. Last two times I haven't gotten any. This is your notice that this is the last time that you're going to get yes votes to me without that."

The motion passed 7-0.

Water Advisory Committee Crisis Presentation

Following the museum item, the agenda shifted to what would become the meeting's defining moment: a presentation by the water advisory committee on what Dr. Allen called the town's most critical challenge.

The committee had been formed approximately four years earlier when Dr. Allen was retained by Maricopa County Parks and Recreation to review water-rights issues at Spur Cross Ranch. In that process, he reviewed historical documents at the Desert Gold Museum and began examining the town's water system. What he discovered alarmed him.

Key Speeches

"Our utilities have been operating at 1.2 million blocks each year for the last number of years. Water treatment plant has not been operated as designed. There are too many preventable equipment failures. Electrical use and costs are far too high. Excessive water losses have been routine. Engineering staff is inadequate to achieve improvements. And wastewater treatment plant inflow is too low." — Dr. Bill Allen, water advisory committee chair

"We have 123 million gallons of water that's being wasted. As the plant was designed, it has a backwash recovery system that's being bypassed. That's the water that we pump up Cave Creek Road about 14 miles, and we use it to clean the filters that we clean our water at the plant. It's supposed to go through a sludge recovery system and then be recycled back to the front of the plant, run through the filters and brought out to the citizens and customers of Cave Creek. It's not been operational since it was put into service six years ago." — Tony Gerer, Carefree representative to the water advisory committee

"This is the third Avenue Joy Ranch booster pump. If you look in the hole in the middle, that's where the low pressure water enters and the high pressure water spins out around the outside. If you look at the equipment right there in the middle, you'll see it's worn away. That means it was probably not only cavitating but was in service far too long because that's not cavitation; that's just probably erosion because the water through it." — Robert Morris, water advisory board member, holding a damaged pump impeller

Scope of the Crisis

The committee identified multiple systemic failures:

Backwash Recovery System Bypass (Six Years, 120–123 Million Gallons Wasted Annually): The water treatment plant was designed with a backwash recovery system intended to capture treated water used to clean filtration equipment, pass it through a sludge system, and recycle it back into the distribution system. This system has been bypassed for six years. The result: approximately 120–123 million gallons of treated drinking water are discharged annually into Galloway Wash instead of being recovered. During 2014 alone, the town pumped 242 million gallons of water to Rancho Manana Golf Course (106 million gallons of treated wastewater effluent, 116 million gallons of treatment backwash water, and 19 million gallons of raw well water). The golf course used just over 94 million gallons to irrigate. The remaining 148 million gallons were either lost to evaporation (approximately 25 million) or flushed down the wash (approximately 123 million). The cost: approximately $90,000 annually in wasted water and energy.

Catastrophic Equipment Failures: In the past year, five pumps failed catastrophically out of approximately 100 pieces of equipment in the system—a 5 percent failure rate that should never occur. Robert Morris held up an impeller from a booster pump at Third Avenue Joy Ranch. The impeller showed severe cavitation damage (evidence of vapor bubbles collapsing inside the pump, eroding metal) and erosion from operating beyond its design life. This was not isolated. Robert Morris explained that these failures had been overlooked for years due to inadequate engineering oversight and preventive maintenance protocols.

Chemical Overdosing: The plant's ferric chloride dosing system was overdesigned for future capacity the town has not yet reached. The pumps cannot be dialed down sufficiently to deliver proper dosages. As a result, excessive ferric chloride is being injected. Evidence appears at Rancho Manana's ponds, which have turned brown and rust-colored, and at the town of Carefree, which installed filters on treated water it receives from Cave Creek and must clean brown-caked ferric chloride residue from those filters weekly.

Inadequate Analytical Capacity: The plant lacks the equipment and operator training needed to monitor water quality and system performance. Specialized instrumentation technicians—trained to diagnose and repair automated control systems—are contracted out rather than employed in-house.

Manual Operation of Automated Systems: The water treatment plant was designed to operate in automated mode, with systems turning on and off based on flow and demand. Currently, it operates manually, requiring constant staff intervention and increasing vulnerability to errors.

Inadequate Engineering Staff: The town's engineering staffing level is lower now than when many of these problems were created. Dr. Allen and the committee recommended hiring a full-time assistant utility engineer. However, neither immediate funding nor an authority to hire was available. Finance Director Peter noted that the budget had been set three months prior and no authority had been granted to add positions.

Wastewater Treatment Plant Operating Below Capacity: The wastewater treatment plant, built five years ago, operates at 30–35 percent of capacity. The town is paying on debt service for a facility whose remaining 65–70 percent capacity sits idle, representing approximately $1 million annually in sunk costs. Dry-sewered neighborhoods (those relying on septic systems) are waiting for trunk lines to connect them to the system.

Solutions and Savings

The committee presented a strategy with estimated financial and operational benefits:

1. Repair the backwash recovery system: Capture approximately 100 million gallons annually of treated drinking water currently wasted. Estimated annual savings: $90,000. Timeline: two to three weeks (once new pump ordered for the system arrives, expected within six weeks).

2. Fix chemical dosing: Procure correctly sized ferric chloride metering pumps to deliver appropriate doses, reducing chemical waste and water quality issues. Estimated cost and timeline: not specified in detail, but a consultant had been engaged.

3. Reduce electrical costs: Shift water treatment plant operation to APS time-of-use rates (weekends and nights, when power is cheaper; off-cycle during peak hours). Potential annual savings: $200,000–$300,000. This requires nighttime and weekend staffing adjustments but shifts costs to periods of lower demand.

4. Repair pump efficiency: Diagnose and repair or replace inefficient pumps operating at 3 percent efficiency. Some pumps have never been inspected for years. Estimated annual savings: $200,000+. Implementation: requires engineer oversight and preventive maintenance protocols.

5. Expedite pipeline leak repairs: Prioritize replacement of major leaking trunk lines (approximately five major lines identified) to free staff from constant "firefighting" and allow them to focus on preventive maintenance and infrastructure improvement. Cost: approximately $250,000 for major line replacement (not budgeted).

6. Dry sewer activation: Extend sewer service to currently dry-sewered neighborhoods (Candy Bridge, Choir) to increase inflow to the wastewater treatment plant and boost utilization. Cost: over $1 million in design and construction over at least one year; benefit: activate 300+ homes' worth of flows and increase plant efficiency.

7. Liberty Utilities proposal: The town had received a feeler from Liberty Utilities (which operates Carefree's sewer system) to purchase 17.5 percent of Cave Creek's wastewater treatment capacity—approximately 20 percent of Liberty's total flow. Liberty currently sends 80 percent of Carefree's flow to Scottsdale but owns its own treatment plant (subject to chronic odor complaints). If the Boulders development is sold and Carefree's focus shifts, this opportunity may have a limited window. The town would receive revenue without capital outlay. Estimated benefit: 17–20 percent increase in flows at the plant, improving operational efficiency.

Dr. Allen's Historical Context

Dr. Allen opened his remarks with perspective on Cave Creek's history and current stakes:

"The gold mine is defined as a hole in the ground with a fool at the top. In this particular case, the town's gone beyond that and has actually acquired the site. In the process of doing my reviews, what I found was that the stream Cave Creek was actually a perennial stream up until somewhere in the neighborhood of 1960, 1961. Perennial means it flowed throughout the season all year long. As a result of the drought that we had in the early '50s, we saw a diminishment of the flow. Now it freely flows maybe two or three months during the winter." — Dr. Bill Allen

He invoked Mark Twain and then pivoted to the town's present crisis:

"Water is now the gold in the desert. This is part of the facility and it's an important thing that we have to remember, especially with the drought that we're in right now and the potential for having CAP water supplies diminished at maybe as early as 2017." — Dr. Bill Allen

Public Comment

Eight members of the public spoke during the meeting.

In support of the water advisory committee's work:

Larry Went, owner of the Buffalo Chip Saloon and Steakhouse, praised the council and town staff but highlighted the broader stakes. He spoke of his 20-year regret about urging the removal of the town marshal, believing now that the position was essential for enforcing nuisance and code violations that the Maricopa County Sheriff's Office could not adequately address.

"I've lived here I've seen that this Marshall handles so much more than any Maricopa County Sheriff's Office Deputy could or would. It's noise complaints, building structure complaints, zoning complaints. You need this gentleman right here. He has been out so many times on so many issues and shown such depth of knowledge and understanding on how to handle these situations." — Larry Went, Buffalo Chip owner

Elbert Bell, a 14-year resident, urged the Sonoma News (or any local media) to print the water advisory committee documents verbatim so that all citizens would understand the town's predicament:

"As a citizen I recognize that there is nothing more important to us as citizens than our water. It is Desert gold. No water, no community. No water, no council. No water, no business. It is extremely important, and we've set some goals. We've set some planning in place." — Elbert Bell, Cave Creek resident

West Cooper, the museum member who had spoken on the stamp mill, returned to the public comment section to address the proposed dry sewer connections. He warned that forcing existing septic-system communities to connect to a municipal system while imposing connectivity costs and monthly treatment fees was not politically viable. He suggested an age-related conversion process—waiting until septic systems began to fail—would be more acceptable and might reduce system capacity needs.

Council Discussion: Tension Between Urgency and Fiscal Constraint

The council response revealed deep tension between acknowledging the crisis and lacking immediate resources to address it.

Councilman Tom McGuire asked whether the plan accounted for seasonal water supply variations. Dr. Allen confirmed that the town could use raw well water pumped from the remedy well to supplement Rancho Manana during summer when the wastewater treatment plant's output is lower but the golf course's irrigation demand is highest.

Councilman Spitzer asked why ferric chloride overdosing was occurring only in the Carefree section of the system. Gerer attributed it to elevation differences and settling of materials in distribution lines specific to that area.

Vice Mayor Adam Tran asked whether the committee had quantified the need for additional technical staff and refined job descriptions. Dr. Allen said typical job descriptions would not capture the role; the committee estimated "a couple years worth of engineering work" upfront. Tran also raised the question of cost and timeline for fixing the water treatment plant. Dr. Allen deferred to David Princihorn, the town manager or utilities director, noting that cost savings generated by fixing backwash recovery and reducing electrical consumption could be applied to improvements, making it "a self-funding proposal" over time.

Finance Director Peter became the meeting's flashpoint. When Councilman McGuire asked whether money existed in the budget to increase staffing immediately, Peter replied:

"I mean I just went to council three months ago we get extra money for staff. So right now we don't have money for staff. I don't have the authority from Council to hire staff, but right now staffing levels are where they are. Most of the money you're talking about goes to either maintenance or repair or capital improvement. That's the problem. Cave Creek for a number of years—I mean we're talking five or ten years—the backlog has been neglected and things have should have been taken care of and they haven't, so we're playing catch-up." — Finance Director Peter

When Councilman McGuire pressed further—suggesting that cost savings (estimated at $660,000 annually from electrical and water recovery measures) could be redirected to staffing—Peter pushed back:

"You talk about savings and I don't disagree on time and use savings. Not that I've seen those numbers yet because I haven't. What I see is there. [I don't have] immediate savings to put back into the system. So right now I have to go rob someone else to pay for that, and I'm not comfortable doing that because I have roads that need to be worked on. I have you know planning projects that need to be done. I can't take any more money from it. So we're at a point where you have to look at what your priorities really are." — Finance Director Peter

Councilman Monino attempted to break the impasse by suggesting targeted, quick-win projects: outsourcing backwash recovery system repair to a contractor (estimated $150,000–$170,000) and committing to 2,000 linear feet of pipeline replacement. This would free up staff time by shifting work to external contractors while generating immediate savings. Peter did not agree to specific timelines or outsourcing arrangements in his response.

Councilman McGuire returned to the staffing question, framing it as a priority-setting issue. He noted that the council had set aside contingency funds from Spur Cross Ranch water-rights litigation (with 50 percent designated for land preservation and 50 percent reserved). He also pointed to a resolution passed the previous fall directing staff to develop benchmarks, policies, and procedures for water system operation, which had been delayed. He asked Princihorn for an update.

Princihorn replied:

"It's still work in progress today. I directed staff to rearrange the schedule with the water treatment plant so I can free up an individual to actually get somebody out in the field finally to start looking at all these different things. We have 20-some pump station sites that actually need to be visited every single day. There's things that go on at these places, and we have problems somebody eyes on every single day will help to circumvent some of these things. So the first step is to get somebody in the field. Once we get him in the field, I've already got some checklists prepared from the work from Robert Morris, and [we] are working on this vibration analysis thing." — David Princihorn, town manager/utilities director

McGuire pressed: "My hope is for when we go through the budget cycle to look at the actual bodies on the grounds that we need to have in the field to do that." Princihorn and Peter did not commit to a specific proposal for the next council meeting or budget cycle.

Vice Mayor Tran appealed to Peter's sense of priorities, noting that the budget meeting the prior week had required departments to list priorities:

"I know that you and probably more than anybody are aware of the financial constraints. The town, which is why the budget meeting the council just had last week, I told the department[s] [they] have to list their give their wish list but list their priorities, because we don't just have the utility department; we have other departments. Everyone's going to get something. But if the water committee and David is identifying this is just absolutely essential or if there's going to be a cause and effect that's going to make a system that is desperately worse, then that we have to find [resources]." — Vice Mayor Adam Tran

Councilman Monino interjected a note of caution. He acknowledged the pressure on Peter and the council but warned against micromanaging:

"I can feel the pressure that you are under. I think we can set some policies. We can say we want you to move forward. But I want to be careful about how we're getting into the solutions that they are better at putting together than we might think up in our heads. They are professional[s]. We set policies, and I want to be very careful that we're not getting ahead of the process." — Councilman Monino

Councilman Spitzer offered a more action-oriented perspective. He called for concrete deliverables and quick fixes, particularly the backwash recovery repair:

"There are some things that we can do quickly and I think we should do quickly. This backwash recovery system has an immediate payback. Okay? Now if we have to hire somebody, a professional, somebody to come in and put the automated whatever it is in, okay, and train the staff in it, I think that person would be here next week. Right now we spend a whole bunch of time on fixing leaks. If we outsource this and we hired a contractor—pick a number, $150,000, $170,000, whatever it is—okay, put in something like 2,000 feet of pipe. Okay? Somebody else is doing the work and by the way I don't think we have the equipment to do the work anyway. No, we can't do the work. Okay? Um, so now things are happening in parallel. Things are happening. Um, I'm looking for deliverables. I'm looking for fixes." — Councilman Spitzer

Mayor Robert Morris (referred to as "Mayor Francis" in portions of the transcript, though the canonical roster lists him as Mayor Robert Morris) acknowledged the presentation but did not commit to action items:

"This is not an action. I think that's exactly right. This in no way was to be specific instructions for staff on how to move forward. It's identifying major issues that can be tackled." — Robert Morris mayor also noted the Liberty Utilities proposal as a revenue opportunity requiring no town capital outlay and the limited window for capturing it.

Opposition to Dry Sewer Activation

While no one opposed the water advisory committee's analysis, West Cooper raised a critical concern about one of the committee's recommended solutions: connecting dry-sewered neighborhoods to the municipal system. Cooper, a resident of a development with septic systems, noted that he had spent $30,000 to install a subject system (a septic treatment system) and warned against the town imposing connection requirements and monthly treatment fees on existing properties:

"I live in one of these communities with a dry sewer system there, and I spent $30,000 to install a subject system because that dry sewer system was not connected to anything. And if you're thinking of imposing our developments into the sewer system and us to put the cost for connectivity and then on top of that a waste processing fee on a monthly basis for a system that I've got 20 years useful life expectancy on that, [you're] barking up the wrong tree." — West Cooper, Cave Creek resident

He suggested an age-related transition, connecting neighborhoods as their septic systems fail over time, would be more viable and politically acceptable. He also estimated that forced connections would add only 15 percent to the plant's capacity, a modest gain relative to the cost imposed on homeowners.

Other Notable Items from the Meeting

Recall Election and Councilman Lipsky's Defense: Earlier in the meeting, Councilman Lipsky addressed the ongoing recall election against Vice Mayor Adam Tran. Lipsky clarified that his decision to run in the recall was made independently and not influenced by the local newspaper:

"One of which is that I am somehow a stooge of the local newspaper and that Don Scor is somehow pulling strings but as you can see, no strings. He and I have never had a conversation in our lifetimes, and my decision to run in this recall election was mine alone and I made the decision for myself and for the people of Cave Creek." — Councilman Lipsky

Vice Mayor Tran responded, noting the absence of other recall candidates from the meeting and defending his attendance record:

"Mr. Lipsky who just got up to speak as one of the candidates—it's nice to see him here this evening. The other three challengers are conspicuously absent. I'm using that phrase because it was used to describe my absence in November when I was actually out of town celebrating my grandfather's birthday. So I take some exception with the fact that Mr. Lipsky would like to take a stab at me in public for being absent in November. Last I checked this is an unpaid position and I spent more hours committed to working for this community than I do sometimes working for my paying job." — Vice Mayor Adam Tran

Vote Breakdown

Cave Creek Museum Funding ($10,000): 7-0 unanimous approval.

• Yes: Mayor Robert Morris, Vice Mayor Adam Tran, Councilman Lipsky, Councilman Tom McGuire, Councilman Spitzer, Councilman Monino, and one additional councilmember.

Water Advisory Committee Presentation: No formal vote was called. Council directed staff to develop a specific plan with priorities and return it to the council at a future meeting.

Outcome & Next Steps

The council took no immediate action on the water advisory committee's recommendations. Instead, Robert Morris and the council directed staff to:

1. Develop a specific, prioritized plan addressing the identified water system issues.
2. Consider the recruitment of an assistant utility engineer as part of the next budget cycle.
3. Evaluate the feasibility of outsourcing certain repairs (such as backwash recovery system installation) to accelerate timelines and free up internal staff.
4. Investigate the Liberty Utilities proposal to purchase wastewater treatment capacity.
5. Plan for dry sewer activation, with particular attention to age-related conversion and community impact.

Finance Director Peter and Town Manager David Princihorn did not commit to a specific return date for a detailed proposal or to interim measures. The budget cycle and departmental priority-setting process were ongoing. One council member (Vice Mayor Tran) requested that staff bring a resolution or staffing proposal to the council within weeks; others (particularly Councilman Spitzer) called for near-term deliverables and outsourcing of specific projects. However, no formal timeline or action items were formally voted on.

The meeting ended without resolution of the fundamental tension: the water advisory committee had identified a systemic crisis requiring immediate intervention and technical staffing; the finance director had stated that no budget authority existed for immediate hiring and that reallocating maintenance funds to personnel would exacerbate existing deferred-maintenance problems; and council members were divided between those seeking immediate action and those cautious about micromanaging the budget and staffing process.

Controversies & Context

Systemic Deferred Maintenance: The water advisory committee identified failures that had been "neglected for many years" (per Finance Director Peter's own acknowledgment) and "ignored for such a long time" (per Councilman Monino). The backwash recovery system bypass had persisted for six years despite being a design flaw introduced at the system's original construction. Catastrophic pump failures were attributed to equipment never being inspected over an extended period. One citizen (Robert Morris, the water board member) emphasized:

"These problems are really management problems. They are not a problem with the employees, the field employees, or the staff, other than the management. And as the engineering staff was until just recently, our engineering staffing level in the town is lower than when these kinds of problems were created, and they are not going to get fixed without a program and a process, a systematic method of determining where the problems are, checking the design, training the employees on how to run pumps [and] operate pumps correctly." — Robert Morris, water advisory board member

Opportunity Cost and Budget Constraints: The council faces competing demands. Vice Mayor Tran referenced sidewalks, town art, and street restriping as other priorities. One citizen, speaking as a private citizen (Dr. Allen himself), argued that priorities should reflect the existential importance of water:

"I think it's time for dramatic direction from the council to get the resources, to identify those resources, and get them allocated to getting the easy parts of this problem solved now. There's a series on now where the winter is coming. We had a code red last summer. We're in jeopardy right now at the lift station because of lack of maintenance and breaks. The second point: these are all symptoms. The problem is management. All problems ultimately come down to management. The priorities ought to be high. The management accountability should be high to match the priority and the jeopardy that the town is in, and finally, urgency: the critical parts need urgent action." — Dr. Bill Allen, speaking as a citizen

Finance Director Peter countered that roads, planning projects, and other infrastructure also needed funding and that reallocating maintenance and capital funds to personnel would leave the town vulnerable to other failures.

Water Supply Vulnerability: Dr. Allen opened his remarks with historical context—Cave Creek Stream was perennial until the 1950s–1960s drought—and modern context: the potential for CAP (Central Arizona Project) water supplies to diminish as early as 2017. A citizen at the end of the meeting invoked the collapse of the Hohokam civilization, which had thrived in the region from 900 to 1200 but vanished, possibly due to water depletion:

"What is suspected is the water ran out." — Mayor Robert Morris, summarizing citizen comment

This historical framing underscored the advisory committee's argument that water conservation and system efficiency are not luxuries but existential concerns.

Political Recall and Service Commitment: The recall election against Vice Mayor Tran was live during the meeting. Tran used the opportunity to defend both his service record and his commitment to the community, noting that he was spending more time on council business than his day job. The recall challenge (brought by Councilman Lipsky and others) may have added urgency to certain council members' calls for action, as the recall election would be resolved within weeks.

Duration

• This item (Water Advisory Committee): Approximately 60 minutes of presentation and council discussion.
• Total meeting: Approximately 120–150 minutes (not fully transcribed; assumes 15–20 minutes for museum item, 5–10 minutes for consent/procedural items, 60+ minutes for water discussion and public comment).

Controversies Highlighted by Citizens

A final citizen, also speaking as a private resident, echoed Dr. Allen's theme:

"The most obvious prior to all of us getting here there was quite an advanced Native American Indian civilization of [Hohokam] that did terraced farming in that aquifer, and they thrived here in many ways from 900 to 1200. And then one day in 1200 they were here, and then they weren't here. No one quite knows why, but what is suspected is the water ran out." — Mayor Robert Morris, summarizing citizen comment

The implication—that Cave Creek, like the Hohokam civilization centuries ago, could face collapse if water is wasted or depleted—hung over the meeting's conclusion.