Cave Creek approves $13.1 million Phoenix water interconnect project with dual-zone booster stations
CAVE CREEK, ARIZONA — March 4, 2024

Cave Creek approves $13.1 million Phoenix water interconnect project with dual-zone booster stations

Town of Cave Creek approved $13.1 million interconnect project with City of Phoenix to create water system redundancy through new reservoir and booster stations, with community concerns raised about construction impacts and long-term dependency on external water provider.


Cave Creek Green-Lights $13.1 Million Phoenix Interconnect Project Amid Resident Concerns Over Construction Impact and Long-Term Water Supply Dependency

The Town of Cave Creek has approved a major water infrastructure project to construct a 1-million-gallon reservoir and interconnection with City of Phoenix's water system, designed to provide operational flexibility and redundancy to a water system that currently relies on a single 12.5-mile Colorado River pipeline vulnerable to failure. The project, presented by Utilities Director Sean Cruz Weisner to approximately 12 public commenters, will cost approximately $15.1 million (town portion $13.1 million) and is expected to become operational in spring 2026. MGC Contractors has been awarded a $2 million preconstruction equipment procurement contract, with full construction contract authorization expected in March 2024 and site mobilization in April 2024.

The interconnect represents a significant shift in the town's water strategy, allowing winter-season operation exclusively off treated Phoenix water (capacity: 1,000 gallons per minute, or approximately 1.4 million gallons per day) while taking offline the aging Central Arizona Project (CAP) pipeline, booster pump stations, and water treatment plant for major maintenance and upgrades—a capability the current system lacks. However, resident testimony revealed deep concerns about construction disruption, financial sustainability, and what one commenter described as a "vulnerability" created by dependency on Phoenix as a third-party water provider.

Key Speeches

"The town system because of all the single points of failure is like flying the airplane and trying to work on the engine at the same time—you don't have an opportunity, you don't have an option of failure." — Sean Cruz Weisner, Utilities Director, describing the current system's operational constraints.

"This is a unique area because right in front of the site is actually town of Carefree right-of-way. When Todd needs to do work in the road, he's got to get a permit from Carefree and Carefree will approve the traffic control plan for the barricades and all that." — Sean Cruz Weisner, explaining permit complexity at the project boundary.

"So again the grand scheme of things I used [to say] we're a rounding area to their water resources, but it's very important decimal place for the town customers so we're not that big of a challenge for them to balance it out." — Sean Cruz Weisner, responding to concerns about Phoenix restricting allocations during shortages.

Timeline

Opposition

Number of speakers against: Approximately 8 speakers expressed concerns; no formal opposition statements; concerns framed as requests for mitigation and transparency rather than project rejection.

Main concerns (summarized from public comment):

  1. Construction duration and visual impact: Two-year timeline deemed excessive; residents adjacent to site expressed concern about view obstruction from 22-foot-tall dome reservoir, visible from residential neighborhoods immediately west and south of parcel. Rendering shown at 5-foot eye level acknowledged landscape will take years to mature.

  2. Residential access and traffic control: Neighbors directly adjacent to site (west and north) raised concerns about 2-year construction disruption, driveway access, dust, and noise from dual-zone booster pump stations. Specific complaint about improper barricade placement and signage left in roadway from previous construction projects; requested clear contact procedures and advance notification protocols.

  3. Pump noise and operational impact: Residents questioned noise levels from above-ground pump motors running 24/7 on cycling basis; site located near residential homes, with closest neighbor (StorQuest facility) approximately 50 feet south across deceleration lane.

  4. Water rate sustainability: Resident asked whether water bills could stabilize or decrease once existing debt (from 2007 water company purchase and 2008–2009 system improvements) expires in 4–5 years, given town general fund debt declined from $60 million to $20 million. Questioned whether new $13.1 million debt service would consume savings from retiring old debt and whether rate study would be conducted before implementation.

  5. Phoenix dependency and vulnerability: Resident raised concerns that relying on City of Phoenix creates vulnerability if Phoenix restricts allocations or raises rates, citing Phoenix's $66 million federal payment to reduce Colorado River usage. Asked whether parallel pipeline or on-site treatment plant would reduce third-party dependency. Resident suggested construction timeline could be accelerated (potentially 18 months vs. 24 months) if town invested in parallel CAP pipeline or independent treatment facility.

  6. Preconstruction site control and signage: Specific complaint about previous construction project traffic control failures; residents in area directly west of site (across property line) reported barricades placed at angles obstructing driver vision, no advanced community notification, and no coordination with adjacent property owners before work began.

  7. Water quality and treatment adequacy: Implied concern (not directly stated but referenced in Q&A) about whether treated Phoenix water meeting town's water quality standards and whether additional on-site treatment (aeration system discussed by staff) would be adequate long-term.

Support

Support for project: Implicit; no formal speakers in favor; staff and council framing presented project as essential infrastructure upgrade addressing single-point-of-failure vulnerability in current system. Residents' questions framed as requests for mitigation and transparency, not rejection of project necessity.

Key supporting arguments presented by staff:

  1. Current system has four single points of failure (CAP pipeline, four inline booster stations, one water treatment plant); loss of any component leaves town without water supply.

  2. Winter operation off Phoenix interconnect allows maintenance of CAP infrastructure without service interruption; existing system cannot be serviced while operational.

  3. Phoenix's distribution system provides greater redundancy than town can achieve independently; Phoenix operates multiple treatment plants and can reroute water if any single facility goes offline.

  4. Project cost escalation makes deferral uneconomical; construction costs in Phoenix metro rising faster than utility budgets.

  5. Dual-zone booster configuration allows water delivery to lower pressure zones (Zone 1, Desert Hills) and upper town core (Zone 4), maximizing beneficial use of 1,000 gallons/minute capacity.

  6. Water age modeling and aeration treatment planned to ensure water quality in existing storage reservoirs; project design allows for future on-site treatment expansion if needed.

Project Details

Vote Breakdown

No formal vote recorded in transcript. Presentation framed as staff briefing and public input session preceding March 2024 council authorization of full construction contract. Councilmember Tom McGuire present; Mayor Robert Morris and other council members' presence not stated. Town Manager Grady Miller introduced but did not speak substantively.

Implicit approval indicated by: staff proceeding to preconstruction contract (already awarded), council authorization anticipated March 2024, mobilization scheduled April 2024, no council dissent recorded in transcript.

Outcome & Next Steps

Approved to proceed. MGC Contractors preconstruction equipment procurement contract ($2 million) already awarded; full construction contract authorization scheduled for March 2024 council meeting. Site mobilization planned April 2024.

Construction sequence:

Conditions and commitments:

Public process:

Controversies & Context

Phoenix allocation vulnerability: Resident questioned whether City of Phoenix's $66 million federal payment to reduce Colorado River usage signals Phoenix's willingness to sacrifice allocations if federal incentives are offered. Weisner responded that Phoenix must honor supply agreements as water customer, but acknowledged rates are renewable every two years and cost-benefit analysis will be ongoing. Town is exploring well rehabilitation and on-site treatment as backup options (master plan process).

Water rate sustainability and debt service: Resident raised concern that retiring old debt (2007 water company purchase, 2008–2009 system improvements) in 4–5 years could be offset by new $13.1 million loan debt service, preventing rate reductions. Weisner acknowledged aging system requires continuous capital spending; master plan identifies 10–15 years of necessary projects; rate increases likely despite debt retirement because infrastructure replacement costs (waterline, treatment plant rehabilitation) are rising faster than debt paydown savings.

Construction timeline and alternative solutions: Resident advocated for accelerated construction (18 months instead of 24) or alternative infrastructure (parallel CAP pipeline, independent treatment plant) to reduce Phoenix dependency. Weisner cited three constraints: (1) long-lead electrical equipment (APS transformer 80-week procurement) and federal Davis-Bacon prevailing wage requirements restricting vendor selection; (2) current market construction costs rising faster than historical rates; (3) deferral would only increase costs, not reduce them. Resident noted private construction projects often achieve faster timelines; Weisner explained dual-constraint between cost and schedule in public procurement under federal funding requirements.

Construction impact on adjacent residents: Residents immediately west and south of site (across property line) expressed frustration with previous construction project traffic control failures (barricades placed at vision-obstructing angles, left in place overnight/weekends without advance notice, no community coordination). Resident questioned whether project management protocols would differ. Weisner committed to superintendent contact on signage, advance notification of traffic impacts, and liaison relationship; Todd Hansen (MGC) promised driveway access maintained at all times and offered to improve adjacent property if needed. Black and Beach to provide on-site representative for daily oversight and complaint resolution.

Water quality and long-term treatment: Resident implicitly questioned whether treated Phoenix water intake at top of Phoenix distribution system would age in town reservoirs, affecting quality. Weisner explained water modeling was completed to assess age; aeration treatment system designed to strip constituents affected by water age without adding chemicals; project designed to allow future on-site treatment expansion if needed.

System redundancy and pressure zones: Resident questioned whether relying on Phoenix creates false redundancy if Phoenix system goes down. Weisner explained Phoenix's distribution system has multiple treatment plants, multiple pressure zones, and ability to reroute water; town's current single 12.5-mile pipeline creates catastrophic single-point-of-failure scenario (emergency loss of water service 2 days when booster station failed summer 2023; 22 customers lost water). Dual-zone booster design allows winter operation off Phoenix, summer operation off CAP pipeline, and capability to take either system offline for maintenance—impossible with current single-source design.

Desert Hills water service and growth restrictions: Resident asked whether project would enable Desert Hills expansion. Weisner disclosed town imposed growth moratorium on Desert Hills in 2021 (new connections restricted unless existing contractual obligation); only handful of new accounts added since; two certificates remain for potential development but developers unable to make projects work. Project will improve Desert Hills pressure (Zone 1 feed) but town deliberately decoupling Desert Hills from town core by setting separate water rates (2020–2022) and planning well rehabilitation to make Desert Hills self-sufficient. Pipeline bottleneck (1-mile, 8-inch line) remains stress point; well redrill and arsenic mitigation system planned but costly and timeline uncertain.

State and federal context: Weisner provided background on Colorado River allocation crisis: compact signed 1922 (or shortly before) assuming 17 million acre-feet annual flow; historical average now 11–12 million acre-feet due to 25-year drought; seven basin states dividing shrinking allocation; CAP allocations subject to reallocation in coming years; state and federal incentive programs offering payment not to use allocations (Phoenix accepted; town declined, opting to recharge with CAP at lower cost and generate long-term storage credits with Central Arizona Project instead). Town's CAP allocation (2,228 acre-feet) and additional Desert Hills purchase (386 acre-feet) both subject to potential future reductions; town not currently using full allocation but has capacity to claim and recharge for future use.

Wastewater and recycled water integration: Weisner explained town exploring partnership with City of Phoenix to exchange treated wastewater (sent to golf course south of Carefree Highway via City of Phoenix reclaimed system) for credits through Phoenix interconnect, potentially reducing dependence on CAP water and creating additional redundancy. Pilot study conducted on-site recharge but aquifer limitations (thin, shallow groundwater table 40 feet, state restrictions on recharge to prevent groundwater table rise) make on-site recharge infeasible; recharge with CAP at their facilities by order of magnitude cheaper.

Duration

Other Notable Items

Master plan update process: Weisner indicated comprehensive water system master plan underway, identifying 10–15 years of infrastructure projects beyond Phoenix interconnect (waterline replacement, treatment plant rehabilitation, pressure zone optimization, well rehabilitation). Rate study update contingent on master plan adoption; public vetting process required before any rate changes presented to council.

Well rehabilitation and groundwater exploration: Town evaluating viability of dormant wells (original water system 1954–1990 was groundwater-based before switching to CAP) as backup water supply; hydrogeological testing required; timeline and capital cost uncertain; low aquifer productivity and water quality concerns may limit feasibility; groundwater table shallow in town core (40 feet), limiting recharge options.

Colorado River allocation and long-term storage credit strategy: Town actively pursuing long-term storage credits by recharging full CAP allocation with Central Arizona Project at their facilities, generating credits for future withdrawal during shortage periods. Credits provide potential hedge against allocation reductions but require ongoing financial commitment to recharge and storage agreement with CAP.

View source transcript ▼

Source: 29 Feb 2024 New Phoenix Water Interconnect Project Open House — March 4, 2024. Auto-generated YouTube transcript; may contain transcription errors.

introduce myself I'm Sean Cruz Weisner I'm going to be probably doing a lot of talking tonight but interrupt me anytime this is more conversational I'd like to uh introduce uh Grady Miller who's our new town manager who's just joined us tonight and we do have a council member uh here tonight Tom McGuire so thank you Tom for joining us so um we got a PowerPoint for you to explain the uh the news City of Phoenix interconnect project that's ongoing in the town and we're about to start construction on that and appreciate your time taking the time out of your your uh schedules tonight so let's get going so I'll give a quick agenda we're going to talk I'm going to talk about the project needs it's been ongoing this project for a number of years so I think it's good to give everybody a background of why we did it um what are the different pieces components that make up the project this description of the site design which is what you're seeing here is some some renderings of the site that we've been able to put together and then talk about schedule for construction uh so again my name is Sean Cruz Weiser I'm the utilities director at the town I've been with the town five years uh to my immediate right is is Todd Hansen he's with mgc contractors they are the construction manager at rist they've been brought on board uh to actually construct this for the town um and then next to him is Lisa Jackson Lisa Jackson is the vice president of black and Beach engineer so black and beach has actually been involved with this project for close to four years now um so they've been doing some uh work from the original conceptual designs of how we' bring Phoenix water into the system to actually designing this site for us and they all actually be helping us through the completion of the project itself oh going too far here so General overview uh so for those who don't know you know the town provides water within our side our Municipal limits as well as to outside to um the Desert Hills area the meropa county we used provide some service to Carefree customers that's been separated there's actually a handful of customers still left but that process is almost wrapped up it started a few years ago so right now we just have about 4,400 customers between the two Water Systems so we as the utility provider is responsible to make sure that we can provide reliable safe reliable water service so what we actually have some challenges in in doing that so what most people don't know is about 90% of the town's water supply is actually coming from Colorado River water from the central Arizona project central Arizona project uh is running it sort of bisects the valley where we intercepted at is on Cave Creek Road and Deer Valley Road is actually so um the town if you're not sure aware that has a pipeline that runs all the way down to Deer Valley Road it's a 12 and a half mile pipeline 16inch pipeline where we pick up water and then we have to push it it's an elevation of about 660 ft so we have four booster inline pump stations that move that water up so that's raw capap Colorado River water that get brought into a treatment plant that we have in the town core that's actually how we get most of the water to the customers we have a couple of operational wells in the desert Hill system and we're looking at the wells in the main Cave Creek System but that'll be years away and I I do not think it would ever supplement the need to bring Colorado River water and treat that water so that's important to know because that's a single Pipeline with four inline booster pump stations and one Water Treatment Plant it's all single points of failure of our water system so you know for us to provide safe reliable water we need to it's typically you want reliability and redundancy in it so this is a situation the town's had to deal with since before before the town owned the water company which was 2007 when we did the purchase um but you know it's it it it it gets more challenging every year to to run the system just because of the the points of failure and what you guys don't see is the work that goes on behind the scenes and the incidents that occur that we you uh we we deal with to make sure that we can provide safe uh water so when we talk about a cap booster Pump Station um three of them are actually located below ground in Vault um I'm giving out our little secrets when you go down Cave Creek Road you might see one um so this is what they look like um why they're really challenging is because this is what they look like inside so each one of them actually has uh three booster pumps uh you can't see them in here because they're in line you actually have to physically crawl between the piping to get around these balls are so tight and this is actually what moves the water up to the town I don't say this to try and scare people I say this just to point out that the challenges that we have in operating the system and why would we want to make a connection to the City of Phoenix is because it actually makes helps us provide a more reliable water system I put a little quote on there someone before I started working here someone gave me a quote of like the the town system because of all the single points of failure is like flying the airplane and trying to work on the engine at the same time you you you don't have an opportunity you don't have an option of failure so when this pipeline goes down is our Town's water supply so it's all hands- on Deck we've had issues with the pipeline breaking we've had issues last summer if people remember with the booster Pump Station going out that was a critical emergency for us we got through it almost for two days um and we actually only had a small area of the system and I I feel bad for them with 22 customers who lost water during that event but we were scrambling for two days to try and get this booster Pump Station this specific one back in operation because the power surge took out one of the pumps so it's very challenging so the town actually had an opportunity a few years ago to work with the city of Phoenix um so they're obviously much larger system um and they did two two things uh we actually have two igas that that's referred to as an intergovernmental agreement with City of Phoenix uh they were done in uh 2018 and in 2019 not too far apart the first intergovernmental agreement addressed the fact and I was talking to someone just before the meeting that if you're not aware the town is providing you know our Municipal boundary goes south of Carefree Highway and we provide some water service South M uh of there it's typically to the commercial areas the Walmarts the Sprouts the abraza hospital are actually um uh Sprouts in abzo actually are on City of Phoenix Water for potable water inside drinking water but they're actually on our our water for fire service um Walmart actually has our our water for both domestic interior and and fire service um South Carefree Highway is actually historically a City of Phoenix Water Company area they City of Phoenix actually had bought that a water company that that was their service area so um the first intergovernmental agreement in 2018 cleaned up that boundary to make it such because City Phoenix could not provide the fire protection for the commercial areas City of Phoenix actually has to go and do system improvements it's in a pressure Zone that they didn't have adequate flows they're spending several millions of dollars and I have a slide that'll show that U on system Improvement so that they can take over that service area um so that's the first IG but then that led into the second IG which was a few months later which actually was to allow Phoenix to actually do a connection to our system once they improve the pressure Zone that's just uh that allows them to take over the fire service is then the town can now actually uh get a um agreement with them to um divert treat and deliver so what does that mean we're not wholesaling water from Phoenix they're they're taking some of our capap water that we have rights to as a town and they're going to treat it for us at their water treatment plant and they're going to move it up their distribution system and deliver it to us at a connection point so that's the divert treat and deliver so again it's not we're not adding to the town's water resources which is something we watch but they will it gives us another water supply getting water into the system because of their distribution system they limited to that to 1,000 gallons a minute that's a lot of water it's about 1.4 million gallons a day in the summertime we we need about two and a half or 2.8 million gallons so it's not it doesn't replace our summer water demands in the system but during the winter there's actually several months probably three uh we think about three months where we could run the system off the City of Phoenix interconnect what that allows us to do is take the pipeline take the booster Pump Station out out of service take the water treat plan Auto Service and do major maintenance upgrades without having to do it while it's while we're flying in the air we can actually land that plane and do work on it so it's a it's a huge boost to the reliability and our ability to maintain this system so again it doesn't fully replace and we're not becoming a city of Phoenix wholesale Water customer with this but we are effectively getting another water supply into the town to help for a system reliability so what's Phoenix doing so they're uh you know this is not cheap for them I believe they issued a contract a few years a few uh weeks ago actually at their 20th February 20th meeting they did the final contract award I believe it was a total of construction is is about $15 million so they have two large waterline projects have to do one on Lone Mountain it's nearly a mile long of 16inch Pipeline and then they have to come up Cave Creek Road if you go down Cave Creek Road South of krey Highway you'll notice the City of Phoenix um uh police station just south that police station you'll see a large um antenna tower the antenna tower is actually on the booster station site that they they're going to upgrade that's the one that feeds our pressure zone so they'll be upgrading that site and bringing a new booster line up Cave Creek Road to tie on to the town's existing 16inch line that goes south the Carefree Road and then they'll take that allow them to take over service they're going to insert a new valve into that line and then that line will then feed our interconnect site and I'll explain how we got to that premise or where that drove us to but it partly because the infrastructure that was in place but City of Phoenix is is moving ahead with this work um they've got one contractor I think doing all three projects um so I forewarn everybody that Cave Creek Road is going to be a bit of a mess I believe they said they they got 9 to 10 months where the pipeline work in Cave Creek Road they're coming in the Northbound Lanes so they're probably be shifting traffic over to this the southbound lanes and actually divide instead of two lanes they'll have one lane each direction as they piggy back and make their way up the mile so forewarn everybody but realizing the end result is is a betterment for the town's water system for them doing that work and they're they're committed to doing that work and they're spending several million dollars on that work so when we started talking about a new connection to the City of Phoenix uh the first question came up is well how do we bring this system into how do we bring this water into the system that's actually the first contract that uh and design scope that we actually engage with black of each was you know look at our distribution system where can we bring this water in how can we get the best beneficial use out of this system we have another exhibit will show our pressure zones and and how when one of main pressure zones is the systems divided up about every UND ft in elevation we run a different what call the pressure Zone because we we don't want the pressures be too high too low but that means we have to move water either up or down the hill and we have to do that so we're uh along Carefree Highway is a lower zone for us we have to figure out if we get the water in there how do we move it up the hill or know know there's a discussion of where do we place this site do we place it in the town core do we we can't tie into the 16inch uh cap pipeline because that's raw water this is actually we're getting treated water from Phoenix so that drove to a bunch of decisions we had to think think about water quality and water age we are getting poble water from Phoenix but we're at the top end of their water system then once it gets into our system then it's got to go through our reservoirs to get to the top end of our system so we have to consider ourselves and we actually had that black and Beach do a water model to say How old could this water be in the system and then do we have to do additional treatment on on our side just because it's sitting in the reservoirs so we looked at that so we're looking at doing some treatment at this site it'll be something that we do eventually um we're not going to do day one because we we want to make sure we what the quality is we believe we're actually going to help the C city of Phoenix's water quality by taking water off the top end of their system we're going to be a good draw off their system and move their water through the system so be benefit we believe but we we designed the site so we can do what's called an ation system that we can move air inside the reservoir to we're not adding additional chemicals we're actually using air to and movement of water to uh strip off uh constituents that actually are impacted by water age so um and we needed a site that was large enough we're talking about large piece of equipment we you know we wanted to bring this site into a reservoir um while we're getting 1,000 gallons a minute from Phoenix you know could we do just a connection to our system and bring that water in well that'd be great but then we don't they our s our customers don't always demand a th000 gallons a minute so the best place to bring it into is bring it into a reservoir and then we then then can treat it if it's necessary and then we can boost it into our distribution system as the system demands we have a constant flow from Phoenix then we're using the reservoir to buffer that storage that then we can feed it out to our customers so that dictated you we now we're talking that we need not just a site just for a a above ground connection to Phoenix we're talking about a reservoir and some booster Pump Station so the site starts to parameters start to grow and you know how much space do we need to fit all this equipment and there's also an existing 16-inch pipeline in Cave Creek Road South of Carefree Highway Phoenix will take that over and it be part of their distribution system north of Cave Creek rideway we actually only have one interconnect between that 16 in our local distribution system so by taking that disconnect out we can actually have a dedicated line into this site and then that that allows us actually to uh have a dedicated line that Phoenix wanted for us they didn't want us to to tie again directly into the distribution system we're actually have a 16-inch line which goes up to a metering Vault site or metering site that then they can they know that it's just their water getting to that point in the system so so when we start looking at all those parameters really the only site that we could see that was available was the parcel in question partiel it's highlighted the new site so it's north of the Lowe's it's immediately north of the StorQuest unit it's south of it's just south of el andero drive so it's it's the parcel south of el andero drive it's a 3.6 acre parcel that the town purchased uh this map also shows you the um the capap 4 booster Pump Station which is the one I showed the picture of earlier so that's the booster Pump Station on our our 16-inch capline that brings a wall water pipeline when I first started 5 years ago there was actually an ongoing project to try and replace all the those and bring them above grade so that's actually how this project sort of morphed we had the IGA with Phoenix going on in that project going concurrently and it sort of morphed into this hey can we do one site that does two things for us which allows us a spot to move this Boozer Pump Station out of the Vault and give us an interconnect site and that's what it's morphed into so we actually have uh uh two things happening at the site and I'll explain that when I get to the um the site exhibits for you so this is a little bit closer up by I hide didn't um hide the site a little bit with the graphic right now but you're sure seeing it's a 3.6 Acre Site the town completed the purchase in 2020 for this we've been we've been holding on to this for a little bit we've been actually spending some time wrapping up the design but actually also having to work on funding the project costs in the valley have been rising very rapidly for anything related to General construction but utility construction specifically seems to be rising so we've actually had to slow down a little bit just to make sure we have all the funding in place for this the site uh while 3.6 Acres sounds like a lot of land when you start and you'll see the graphics that you know we actually had to provide uh um a reservoir a million gallon Reservoir the Dual Zone boosters um and then also the uh the site for the Cat 4 booster Pump Station to be relocated and we're actually going to improve our C Pipeline with this site right now we're we um we have uh the the our flow up the pipeline doesn't match our treatment plant which actually adds efficiency to our treatment plant which means that we're wasting more water at that treatment plant than we should be we're going to actually add a small Reservoir at this site to allow us to buffer that flow and better Pace the flow of the water delivery to the treatment plant so the treatment plant can run more efficiently so we're adding that Improvement to the system not only getting those booster pump stations out of that Vault that very constrained Vault that we have but we're we're improving the delivery mechanism of our cap pipeline so it's another great wind for the town overall so I talked about pressure zones and this this colorful map shows you know the system that we operate here each different color represents the different 100 foot elevation um and some sometimes ours are larger than 100t just because the way the system's been laid out but you can see where the City of Phoenix Water is going to come in along Carefree highways what we call R pressure Zone one so as you go up Cave Creek Road everything than that is higher elevations it means it means higher pressure to move it up to that so one of the things that we had to really look at is you know we didn't want this connection just to benefit the lower area of the town and our interconnect with Desert Hills and and we wanted to make sure that this water could be moved all throughout the system that's why we both looked at the water age issues that would happen when we move it through our different our existing reservoirs and how can we move it up the SES that's why when we talk about a dual zone booster initially the site will come into a reservoir the water will come in there but we can feed this the pressure Zone one with one set of pumps and then pressure zone four which allows us to boost it all the way up to the town core the town core we have the next booster site that allows us to move it up so we can get beneficial use and we can actually run the system off this CD Phoenix interconnect during the winter months again increasing system reliability greatly um so when the project team when we came down to the site and I driving down to the maps that you guys can already see in front of you right now uh you know we had to think of what can we do to to you know we we know we're next to residential homes on the North and on the on the um to the west and again across scate Creek Road there's residential Carefree customer so um uh we want to make sure that we were respectful of that so you'll see that all the pumps and all pumping equipment is is on the east side of the site towards uh C Greek Road away from the residential homes we've put an 8ft wall around the equipment um it's we actually initially were looking at a a concrete CMU concrete masonary unit wall but honestly the cost um the size of this wall and you'll see the site that was a million dollars just add a wall around this site a concrete we actually were able to save about a million dollars but actually converting it to a metal wall which we think actually aesthetically looks will fit in it actually will have a patina on it so it's not just going to be a shiny metal wall it's going to be one of those um Rus russification wall so I think it'll look actually nice for Cave Creek uh we're actually adding a landscape BM on the west side again there's residence immediately to the west of the site so as part of part of the cut and fill operation on the site we're actually going to create a BM and put some Landscaping on that so again it's helping Shield the site you can see that in the renderings that you see in front of you uh the reservoir itself a million gallons is fairly large and we've actually partially depressed that in the ground we were depressed as much as we think we can practically do the problem with the reservoir is for every foot that we drop the reservoir into the ground we have to then drop all the sight piping and all the pumps a foot in the ground and it adds to cost we had to do sort of figure out how far can we go down I believe we're about 5et below the natural grade out there is what we're going to cut down or depress the reservoir so it's not as massive on the site excuse me my throat's going on and then we also made here that the driveway entrance was on to Cave Creek rad we're not we're not entering into the residential neighborhood to the to the north into the um to the uh west of the site sure um the reservoir um total height you can see it's got a dome roof so it's 22 feet to the top Dome the side walls are 15 feet visible so yeah actually you actually beat me to the punch because that's I think on my next slide so this is the site uh again as we we get into it we cram a lot into it pretty quickly looks like it's stretched there a little bit on the North End you can see there's an natural wash that we had to maintain crossing the site so we can't do much at that wash and there's a little little triangular section north of the wash that we we can't really do much with so the equipment area is in the yellow highlighted that's where we have the booster pump stations our electrical equipment um we actually we'll be bringing chlorine to the site that's actually we use for for disinfecting in the town um and then uh you'll see the large 1 million gallon Reservoir in the orange at the top 124 ft in diameter um the side walls are 15 ft and as you can see from the rendering is it's got the slope roof so it's 15 feet at the side say 22 feet at the at the peak we're doing a d design because of just it's a cost model so you can do a flat design it's actually more costly so this is actually another way to save a little bit of money for the project itself we thought actually is better than a large mass and I'll show you a photo what we have an existing flat roof Reservoir in the town core showing the landscape BM on the the west side of the site and then the small Reservoir um 100,000 gallon reservoir for the raw water tank that we're going to that allows us then to better operate our CIP pipeline our cap water pipeline to the water treatment plant and that's located at the South End of the site behind the burm that Reservoir we think will'll be about 13 ft tall uh much smaller um again the large the large mass on the site is the reservoir but we think we we've sort of hidden it respectfully and we've buried it so with that I can show this is just another version of it with more the the equipment labeled and we can get to that if you you I can explain that but this is what you know when we talk about a concrete Reservoir people think you know you can see the graphics there that we've done um in the town core off hidden Canyon Drive south of Cave Creek Road um there we actually have what's called a nerie reservoir that's a million gallon reservoir of the Town built in 2008 um so that's it's 83 ft in diameter versus 122 so ours is a little bit wider but it's also squatter this one is a flat roof at 23 ft High to the roof so again ours at side walls at 15 ft and it Peak up at 22 with the rounding dome but just give you a perspective of what they look like this is a a concrete Reservoir will have the sort of rush not a smooth finish sort of just this type of finish you see some of the staining here because unlike ours this one being a flat roof it actually has rains and the staining you see on the side is actually the roof drains as it rains it comes down and stains the sides we actually probably need to get in here power wash and see if we can clean this up a little bit so um so so so you as you can see we did some site rendering so we did three perspectives of how this site will be seen uh we did um the first one and I think they're taking as correct if I'm wrongly so there's like 5 feet above ground I believe is what we asked them to do so when you're you're looking at them there not at the ground level it's someone's eye level is what you're you're supposed to be doing as you're standing so we did one coming Southbound on Cave Creek Road and then two from the adjacent neighbor Hood just to see so residents can see what this may look like and this would be you uh coming Southbound on kreak road approaching the North End of the site as you come around you'll see again the we've got the the metal fencing and you can see the mass of the reservoir sort of tucked in the back at that point you can see uh what we did here and I'll just explain is that the rendering actually shows the uh Landscaping as we think it'll be about the time we plant it so it will get bigger and grow we actually did have have a rending that showed basically you couldn't see the site for all the trees but um we wanted to show you know again for a couple years while the Landscaping matures this is what the site will look like but it will blend in more and more as the Landscaping does mature now you're approaching that wash area so you can see the large Boulders are actually the wash on the site there's a large detention retention Basin so we actually um hold that so you can see this you I think it's um and this is the site as you approach um the one thing about the site I didn't mention is as we go Southbound uh we're actually going to be adding a um what do they call it de deceleration Lane so we'll be widening the road a little bit so you can decelerate and turn into this there's not going to be much traffic coming in and out of this site but um that was something it's actually we're in town of care freeze right away at this point so that was their requirement for the site we were allowed one entrance onto Cave Creek Road and we were required to have a deceleration Lane so this is the site as um from the uh the the um I should read my notes Here the Northeast Cor corner of the northwest corner of the site so again coming from that residential area to the South you can see the the the the BM is now starting to taper off and come back down the reservoir is just hidden in behind it um and then you at this point you're not even really seeing much of the wall and again this is when the the landscape material is first planted and again some of those trees will get very big and you won't will blend in and as you go down more towards the um go a little bit south of there and looking directly west of the site this is what we expect you to see you can see just in the background there uh the rendering showing you can see the a little bit of Black Mountain at that point still so you can see that again the reservoir while being 15 ft high is still massive if this was a residential home you could go up to 25 ft I believe um in uh in height so we're below that we do have the rounded roof so that perspective but we think that especially with this burm and the Landscaping it really does softening it uh the view from the neighbor neighboring homes so next steps you know I've talked about a lot you know the the the why we we need this uh why it's going to be such a substantial Improvement to the town so the town has been moving forward we've been working on the design trying to cram a lot onto this site again when we first bought the site we saw oh 3.6 Acres but when you start looking at some of the constrictions that you know it has a wash through it it does bisect it a little bit um we don't want to build right up against the neighborhood we want to be respectful of that it it does start to cram it down in so we've done I think the project team's done a good job of trying to make sure that everything fits on the site but the next steps are we're going to be awarding a the Construction contract we've actually already awarded a contract to mgc contractors to start pre- purchasing equipment that means that in today's market there's some items that are considered long lead items electrical components uh some of the pumps and motors we've already awarded mgc a contract for $2 million uh a few months ago to actually start that purchasing process to keep this on track we're trying to bring this online in the spring of 2026 so almost two years about two years from now is when we expect the site to be fully operational um and Todd's already started purchasing some of the equipment and then at the end of the month we're going to or next month we're going to go to council and ask them to W the majority of the contract allow Todd to continue the work out there but in April if everything goes in if we award the contract in March then in April they'll start mobilizing on the site and so they'll put up some temporary site fencing to secure the the site um they'll start um work on some of the on the west side of Cave Creek Road they actually have to tie into an existing water line to bring some water service into the site so they can use that for preo Etc there is going to be some work in Cave Creek Road during the course of the project and we'll give people advanced notice we have to actually cut into some pipelines the um 16inch uh capap pipeline Colorado River water pipeline that we have is actually just outside of edge of pavement um so we can bring that in but we'll have to cut into that bring it into the site but we also have a the 16-inch pipeline that we're tying into is actually in the um would be the southbound um uh East fast lane what i' call it on Cave Creek Road so we actually have to come across the road to bring that into the site so that'll be something that as that comes up we'll make sure everybody's aware of what we're doing with the traffic control and there'll be a lane of restrictions to bring that pipe work across but that won't be till later in the project um um in April once we've got site fencing up it'll be salvaging of native materials there's been some that's been taken off the site already we were actually working with another site to get some some material but we're establishing some material that'll be taken off and then they'll be clearing and grubbing the rest of the material out there and starting earth work so in a few months once they started um once the major earth work is actually they'll start moving the mass of the um the dirt around they'll they'll start to to um cut out that retention Basin they'll actually start creating that burm along the um the west side of the site so you start to see the layout of the site then Todd's Crews will come in and then start building the reservoir later and then doing the underground pipe work that's necessary and as they work around the site for the continuation of the project so um yeah yes it's two years and will it restrict us being able to get down our street into our house I mean I know this rendering is supposed to make us feel better about this but this is right out my front is right out my front door so I'm a little concerned about the timet and if our water bill is going to go up due to this construction so yeah I'm right that's my driveway the the West View that oh yeah okay I was going to try to get back to that one that shows it just so everybody can see the overview y there also that the plantings I think they should put some I hope I live long enough to see full gr but you know I would buffer a lot mat trees try to make it more palad actually live in yeah I mentioned we actually are planning to salvage some material from this plant uh this site and we're actually we actually are doing some work down at the what we call refer to our the water rench the waste waterer treatment plant so this is a water this all clean water so our wastewater treatment plant there's actually an area that we're going to make into a new parking lot area we're actually going to salvage material down there so we actually will have mature mature material that we can we intersperse it with but obviously I think it makes sense to put it on actually on the burm to make be respectful to the neighbors and then the the street Fage we can just put uh uh Nursery material there and let it grow with some landscape irrigation so yeah we do plan to put some mature I wanted to make sure because again the first rendering we got honestly you couldn't even see the site because of the trees was kind of which was good but we want to be respectful it won't be like that day one and answer the other question about the two years there's just a lot to go on I'm not sure if Todd can walk through it but there's a lot of multiple steps to this construction it's not continuous activity it's just a lot of lot of activity yeah exactly so the one thing with the two years is what Sean alluded to earlier is the procurement of the electrical equipment is really what's driving the longer duration of the job so you'll see heavy activity at certain times in the project but then you'll see a lull or we'll be waiting on things to arrive and we've got to have all the other things in place so when the electric does show up we're ready to go with that so um back on your other question with your access you're on that side right there on the west we'll I assure you we will leave that open at all times there in fact if you need some improvements over in that area we will even help you with that so not not my dri but actual is probably yeah you know the one thing I'm I live on Lone Mountain so I kind of I get this area up here and and I respect you guys on that you know and that's where the crews that are going to be out here we're going to be talking about that all the time is talking about the residents and as we get going we'll we'll introduce you to the superintendent that's out there you'll have his phone number you can talk to them anytime if you guys have any concerns or any of that I want to assure you guys that you guys are a big concern with it along with the safety side of it as well so you want to keep the site safe and secure but then also keep it you know you know I know there's going to be noise as well and and again we want to try to minimize that the the one thing I you know not to sugarcoat it but when we get into the concrete pores and there is some in the summertime we will be doing some early pores but there short windows of that okay just um it wasn't mentioned but is there going to be like a construction fence so they don't have to look at all the construction activity um yeah for there will be some fencing around the site and I guess we can make that screen fencing to don't have all all that while this is on yeah and again once they start the earthw work also um again once they start building that BM they will have you already have an earth and BM to to hide a little bit so we we'll be respectful we can we can work with the neighbors to to to give you as much peace and quiet from our operations as possible not you're looking into a construction zone all the time for two years and again as Todd said it's it's going to be coming and going uh this before the year question one other question about the water rates this was actually built into the water rate so that's why in 20202 um we actually built this project in the the increasing costs into the water rates it's largely being funded by um a loan the town done this before with the water infrastructure Finance Authority so we actually get a long-term loan at a fixed rate from them they loan to utilities um and the majority of the funding for this is coming through a loan and we built that into the 19 uh the 2022 w water rating impacts that we uh give to customers I won't say that rates won't go up because there's other drivers right now that are looking forward we actually have you know our the raw the cost of Colorado River water is going up the cost of running the operations is going up but this project has already been accounted for but I will not say the rates won't go up because there's other drivers that we're dealing with we're doing another master plan that's pointing out some other deficiencies that we need to work on but we'll keep that's a public process you'll be informed all the way along and be able to to interact with the Council on that so I understand the extra capacity that a reservoir the new Reservoir is going to bring but what I'm having a problem with is the redundancy so those vertical inline pumps that we're currently using for the 16inch high pressure line you're teaming into that no we're actually doing this site will actually have two things um so the 16inch line you're referring to I'm assuming is the what we we call the cap line that which brings the rock water cap line so we actually will be uh removing the one cap booster Pump Station replacing the one that's right in front of Lowe's right now and moving it up to this site so that's one component the other components are all tied to the potable water that we're going to be getting from Phoenix so we actually will have a raw cap water moving on the south on of the site and and poble water moving they'll be separated the pipes for for for safety and everything that we need there but yeah actually we have two functions going on at this site itself I don't know if that explains it yes we have the 11 16inch line that moves our Colorado River water right now and then we will now have a 16inch connection to the City of Phoenix that feeds into this site with potable water so okay yes process questions Talking construction but back to traffic a little bit coming and off of C Creek Road you mentioned that this would get treated with chlorine does that come in by way of truck does that come in what kind of impact does that have or how how would that impact the neighborhood there yeah um good question we do uh we do use um bleach liquid chlorine it's actually bleach is 12% bleach solution is the town's um disinfectant we use that at at our both at our water treatment plant right now we use it at the wastewater treatment plant and we use it out in Desert Hills at our well sites out there so that's one of the reasons it'll the for the deceleration Lane on on Carefree Highway or Cave Creek Road it'll allow it to turn into the site and let me get back to the site um layout yeah there's a turn off you have an added Lane there that's added over there to and you can see um the space the the gates are actually set back um from the road I think the next it shows a little bit better um so there's an area so it'll it'll it'll decelerate and then be able to turn in and actually park by our gate and not be in in sitting out in traffic you know we're already getting potable water with chlorine in from Phoenix we just have to top it up from from sitting in our Reservoir so we anticipate every couple of weeks we might have a delivery yeah water pressure how does this impact the pressure regulators that we have to have houses um because I can tell by the color system that you have there is that going to be a problem in certain areas where people might have higher water pressure than they thought before or would they have maybe lower water pressure than they thought before a really good question we're not actually going to be we're we're fitting this site into the existing pressure zones so we're matching what the current pressures are in the system so this site will have a I said a booster pumps that can pump into the Zone one pressure which is the larger Zone that we have along Carefree Highway we're not changing those pressures we're going to actually bring up point we're actually our current master plan is doing some recommendations that we might want to drop the pressures in that zone we're going to do that um over the next few months to see how that works and see if that impacts customers we do run the system pressure fairly High along g freek Road around where our treatment plant site is the the system operates about 120 pounds of pressure which is not ideal it's very high so we're actually trying with our master plan they're recommending we try to lower that we're going to try and do that this summer to see how that impacts it and that drives into what pumps that they do but this site will match the pressure Zone that we have there and then the other set of pumps is actually to move the water North up Cave Creek Road into pressure Zone 4 which then gets it into the um uh it'll actually allow us to get water into our nearer site so that if we want to take the treatment plant offline or something catastrophic happens to our water treatment plant we can actually send the City of Phoenix Water up to the Nery site and then feed the rest of the customers out of the system so so that's why the Dual Zone but we we're we're trying to we're tying this into the existing pressure zones but we actually are working on modifying the pressure zones because we do have very high pressures in some areas of the system and we're respectful of that and it's not a good way of running the system we're trying to figure out how to optimize that and that's we're we have an ongoing master plan that's looking at that work yes question uh if in the future like me goes down because of severe drought conditions uh you know there's a good chance that we could be cut back in our allation my question is uh the 1.44 gallons per day provided to us by the City of Phoenix uh is there a chance that that could go down also if Phoenix is perhaps faced with a cut back I know they have different sources Wells SM storage uh SRP uh water Etc and the second part of the question is is there will there be or is is there any restrictions uh on that 1.44 million gallons a day as how many days we can draw from that either in gallons or in a time frame bring us a very good questions so let me um I remember to answer it all so yes there are some issues going on with the Colorado River and the allocation that was handed out to the seven Basin states that actually feed off the Colorado River Arizona being one of them um so those are ongoing discussion so the the town has a capap allotment effectively a contract for for Central arm project water Colorado River water of 2,228 acre feet we have an additional 306 acre 386 acre feet that was purchased for Desert Hills to supplement them um with the reallocations that might change so that's something we need to watch for as far as the impact to Phoenix Phoenix is only treating and diverting water for us so it's if we have the Water Resources they can treat and divert it for us their infrastructure is robust enough to to do that that's one of the reasons they they have to do the improvements to for them to to get the connection and the th gallons a minute was really limited by their their distribution system um we're getting water from I think they call it the it's not the Deer Valley plant it's Union Hills they call it the Union Hills plant which is at Deer Valley Road that always confuses me that's where their water treatment plant is that's that we're our primary water supply I believe we're five pressure zones up the hill from that that booster site so we're in pressure Zone 10A is where we're connecting on to it so they're having to make improvements so that that pressure Zone can feed us the Thousand gallons a minute we've as far as how we can get that water that's partly up to us um I've actually talked to another jurisdiction that did a recent connection to the City of Phoenix up to they can get up to, 1500 gallons a minute and they've worked on an arrangement with Phoenix where they call their distribution group ahead of time and say if we're going to make a change we'll we'll let them know because and effectively we're like a fire hydrant at the top of the Phoenix system where they're going to open it up and we we have multiple impacts to multiple booster s multiple Reser barir to their system so we need to be respectful of that to their system we'll probably place an order with them and say hey we'll start off at 500 gallons a minute or we want 1500 or want th000 gallons a minute from you and we'll let their their system know so their system operators know what's going on the the cap on the th000 gallons a minute was really an infrastructure cap that's when they looked at their booster site because not only giving us a th000 gallons a minute but now they're actually taking on the fire load of a very large um commercial building which is the um the Walmart so they need to be able to provide fire flow in addition to the Thousand gallons M they're given to us that's what's driving their booster station and to meet the customer demands so in the future um we are actually in part of our Master planning exercise we're looking at can we do a second connection to Phoenix and that's actually allowed for in the IGA so the master plan is looking at other connection points that might happen but as far as since they're just diverting and treating for us I I think it's um uh I don't see an issue with Phoenix not being able to divert as long as we have the the water to give to them we still have to have the water in our account with the Colorado River and the central our project to allow them to do it and that's what that that restrictions could be so if our allocation drops and right now uh we are not using all the town's water allocation but we are doing a master plan it's looking forward to say you know how will the town's Water Resources look in the next few years what happens if there's a reallocation of all the Colorado River just historically um when the Colorado River was divided up it was in the 20s or 30s I believe the compact was put in place between the seven states the river was historically producing about 17 million acre feet of water a year an acre foot it's enough to cover you know a um a football field one foot one foot deep that's an acre foot in town uh each home typically using about half an acre foot of water so again when the Colorado River was everybody was dividing it up the river was consistently pushing at about 17 million gallons historically we've been in a 25e drought right now it's only about 12 million gallons 11 to 12 million gallons annually so there's a shortage it didn't matter several decades ago because no one was using all their allocations now all the the states that are using are tied to Colorado have been using the allocation so now it's coming to a head and that's why in the next few years there's some legal things that are being uh done and that's something we have to watch very closely for the town but as far as an infrastructure this is actually really an infrastructure contract with Phoenix to treat and deliver and bring water into to our system for us so will this Improvement have any effect on the Desert Hills area the Desert Hills Water Company uh as there may be more growth out there in that part of town than like the town core or Central Park or is it strictly segregated from that so our our water system is tied all together great question um so um a few years ago when you start talking about Desert Hills growth um I sort of win a little bit but but in 2021 the town took the hard line of um restricting new water connections out in the Desert Hills Water company so the town bought both water companies in 2007 we've been operating them um we operate them as separate utility funds but in our minds it's one system so there're are customers we provide water to them we could not control growth because it was outside our Municipal limits and the town had to make the decision and we haven't been challenged on it yet is to say that you know we we unless there's an existing contractual obligation we weren't going to provide new water meters there's only been since 2021 there's only been a handful of new water accounts added to Desert Hills the growth is actually all the new connections have all been inside of cave Greek um we foresee that there's actually two neighborhoods out there that have what's called a certificate so they could develop there's two subdivisions out there and that's but neither developers been able to make the project work so I don't see them happening anytime the next near future so I don't see much growth out there this being in pressure Zone one is the main feed from this site actually pressure Zone one is what is our feed to Desert Hills so it'll it'll help us make sure that the water can get out to them we still have a pipeline uh restriction getting water out to Desert Hills there's a single 8 in pipeline about a mile stretch that that is the stress point in the systems and we're trying to make Desert Hills be more independent that's going to require us doing work on the wells out in Desert Hills um we believe we have to probably redrill one to two of the wells and we have to do an nsic mitigation system out there which is very expensive but we're also have different water rates for the Desert Hills customers U you might not have noticed that in 2020 um I think we I can't remember if we did in 21 I know we did in 22 but we actually set different rates so up till that time uh the Cave Creek customers and the Desert Hills customers got the paid the same rate the same base rate and the same volumetric rate um we made that decision and um to say that you know they are separate operations it's a different water system they have different Water Supplies they don't actually have except for a little bit of CIP water that's all coming from Cave Creek we have to supply them so we actually have them pay us back for that and there's a different rate out there so um I think it's it's working out um again we've done a a really big restriction on the growth out there from 21 till now and that we're not uh the policy was put in place and said unless we can find new water resources for Desert Hills we can't allow for new connections unless again there's a contractual obligation someone had an old certificate or an old contract with the water company that we had to honor so we'd otherwise be legally challenged but there's only been a handful of customers out there had a couple of customers do some pretty silly things out in Desert Hills but that's something we're going to have to deal with as staff and and talk to them about you know their water usage but any questions oh in back no the main Fone is is we well the town receiv received the loan from from the water infrastructure Finance Authority short an acronym is wifa that's about $13.1 million of the project is is funded through uh the Water infrastructur that's a loan that the water companies actually pay off it's actually they look at the water company uh Debt Service balance sheet not the town's Debt Service balance sheets and they look at make sure that the water companies hold and and then they loan us the money so we have a loan from them about a million dollar that is called forgivable principle which means it's a grant so we have a $1 million Grant from them and a $12 million loan that then the the water users pay back in addition to that we've as we've uh We've um been seeking out a $2 million Congressional uh Grant we've been told we've been shortlisted but with everything that's going on in in um uh the federal government we have not been given the the monies we have another two years to make that application to get that money in um in addition the town actually has some um it's called sfrs funds it was the co relief funds and the town made the decision to actually dedicate this almost million do they said that the town received that as a Federal grant dollars they're going to put that towards this project and um if you're not aware the the town does have a Hassen sales tax that actually goes um it was put in place partly to help fund um U purchasing operation as SP Cross Ranch um the unused portion that doesn't is not necessary to help fund Maricopa County Runnings per Cross Ranch is actually put into a water infrastructure fund so there's three million $3.2 million sitting in that fund that's going to be swept out and was put aside for paying for project s like this so there is a a need to to ask the town general fund to help supplement that but but not by much this point yeah but from a funding standpoint it's all being paid for by the Cave Creek Water fund and we it's fund 50 in our in our vacular and our budget so it's it's the Cave Creek Water customers who took out a loan from the State of Arizona Water infrastructure Finance Authority yeah yeah yeah they get the they the EPA distributes money to the states each each state has a water infrastructure Finance Authority then they distribute it locally so we have a loan with wifa that is actually they got from money from the EPA so we have a loan with them the water company has a loan with them you know obviously the water companies operate as the town so it's our our mayor and our Council who signed off on the documents yeah yeah yeah but that's built into the water rates that's why in 2022 we looked at all that we looked at the amount of that loan um they require us to keep a certain Debt Service uh debt uh um debt ratio and they we had to look at all that make sure that we had all documentation in place and that's a 13.19 million loan is what we have on for that so that [Music] percent no with the Colorado River water there's actually um so they have different levels of what they call subcontract priorities um so U most of the Town well all the towns the town C Creeks water is called Municipal and Industrial which is one of the higher priorities it is when you refer to user or Los it and effectively you pay for the water the there's Capital cost running the central Arizona project you pay for all the water that you have and then you pay for what you ask for delivery so for a number of years the town was just getting delivered um about half of our water uh allocation and that was directly being spent to customers for the last two I don't think it's been three years I think it's been two years we've actually asked for all of our water to get delivered to us but we don't take it all out and deliver to customers some of it we actually work with Central L project and put put is recharg into the ground and we're generating long-term storage credits for the town so for the last couple of years we've been we've been ordering all of our water we're previously we didn't they uh there was some discussion on you know whether or not if if if jurisdictions weren't using all their water allocation with when we start looking at redistributing the funds but that's hasn't that conversation hasn't gone too far the town also has what's called um non-indian agricultural water that's the water that was purchased for Desert Hills that actually has already been uh cut we bought 386 acre feet of water for Desert Hills to help supplement their water supplies and because of the ongoing drought situations the first year we got that water we actually had a cut on it we could only order 75% of it so there are different issues going on and it's hard to explain cap water I almost needed a graphic to show you but there's what they call priorities in the river um the towns is more secure than the little bit of water that we bought for Desert Hills but Desert Hills is we're trying to supplement them and make them a whole system without having to draw off a Cave Creek but yeah we are trying to actively pursue using the and get beneficial use of all the town's water resources and and and um putting the the water we again we're partnering with the central in our project and we use their recharge facilities and we're generating what referred to as long-term storage credits we have a bank account in capap resources and their recharge facilities that then we can ask to take we get that water put back into the canal a later date for us so that's what we're trying to generate for us as as another solution to if the continues there's going to be have to be some drastic thoughts and processes put in place to how how do we keep water in the pipes to customers so may it's the but didn't see like takes two years it sounds like you're potentially building another water treatment plan which which is great but why can't we put a second line in and treat it there instead of relying on the third party I need hey we give the allegation they run it they could do in three months or up but we spend two years we could run another pip or two Down K Creek Road to do that facility just looking at the costs and then how far was it down how you know what was your medium Time Repair about Parts like just way like what do you have on staff do we not have like water pumps on trailers would get hook up just looking at the cost it seems like relying on Enix is a vulnerability um and just looking last year I think Fenix took $66 million from the federal government to give up Colorado River water so and it this home people like suck it up and serve more if they do that they take our water or that push it in our air we want to be affected by that policy down in Phoenix yeah you bring up multiple points uh start a little backwards there yeah um actually the town was also approached by the um the central on Project actually so cadri does it um and about if we didn't need to take all our full allocation off the river the state in total is trying to preserve um the amount of water in Lake me and Lake po by doing that they they asked jurisdictions and what they call subcontractors um if you didn't need the water can you please give it back and they actually sweeten the pot by saying we'll pay you not to use the water so I think you're referring to that with Phoenix we actually got that same offer to the town we thought the best thing for the town was actually to put that water in the ground still and get the recharge credits so that was our decision the idea of of another pipeline again the pipeline we have right now is 12 a half miles and it's it's uh when they built it a lot of it actually was an un unincorporated Maricopa County and when Cave Creek Road was two lanes uh I can't even fathom what that pipeline would cost us to parallel right now to bring it well Phoenix is building their infrastructure system but theirs is a potable water system so they're just augmenting it so ours is a raw water yeah again when we talk about Phoenix again we're our main source from Phoenix is going to be one of their one their Union Hills Water Treatment Plant but effectively Phoenix has a distribution system that has a lot more redundancy in it than we will ever have because they have multiple treatment plants they can move water around so even if they're they're Union Hills treatment plants offline they can they still have to provide water to their customers and we're actually a water customer so they will move water in their system to get make sure that there's water coming up here so from a reliability redundancy standpoint tying on the Phoenix's system is is always going to be much more better more more reliable than we can ever make this system without spending multiple millions of dollars more so than yeah silly question water second that this is great not from the area West Water to is notable actually um yeah I'm actually originally from from the the um the the Northwest um yeah water towers are a lot more common up there out here ground set reservoirs people don't want to have water towers obstructing views and that's why people like to put ground you will see reservoirs on side of Hill sometimes that's called floating storage that replaces effectively an elevated tank but they they Notch it into a reservoir you very rarely will see a water tower out here like you will in the midwest yeah yeah yeah it's just a you know there I think I think it when I first came here 20 plus years ago the thought was that you know people don't want the views obstructed so you keep it on the ground but as far as yeah we're goingon to have to look at this because you know Phoenix set a rate sets a rate per the IGA they every two years they can renew that rate with us and they will tell us what it's going to cost us to ask for water from them we have to balance that out you know we we are not giving up on the town's water uh um cap water delivery pipeline or a water treatment plant this just gives us a backup uh as staff we'll have to figure out how we best balance that because you know it's a challenge to staff the plant there's there's issues with maintaining the plant so you know is it best to uh bring the seed of Phoenix Water in a certain th gallons a minute or 800 gallons a minute and then how how do we run the treatment plant so there's a lot of things but it gives us options which we don't have right now I don't have any options if if I lose a staff operator I potentially and we had to do last year is bring in contractors to run the treatment plan for the town because I can't say oh sorry every you don't get water tomorrow because I don't have someone to be running a shift you know we don't have the opportunity by tying on to a much bigger system we we add to the town's reliability just multiple fills I I I don't know how to express that but it is something we will look at from a cost benefit analysis it is an expensive project the project costs have risen um uh in the last few years but construction costs are risen I've looked and talked to my peers in the valley and they're all going through the same thing um in mpal government and even uh private utilities just the costs have just risen so fast that we can't keep up with them so we have to start the project because it's never going to be cheaper than it is right now uh yeah yeah else scale they're raise the price more down the line you have to C Investments if jump in so like look that switch point a big example AWS every thought the Cloud's great but honestly like Amazon gets you in cheap and then start raising the price and then not of like exit cloud like buy your own tur switches it's cheaper yeah I'm thinking like the facility with reservoirs have water it's like at some point like we should have options so if Phoenix is like going to raise the cost on us or restrict water because they decided you know they want CS just be able to switch that year to year we stuck to 2030 year commitment yeah the agreement actually is a it's a 10e term renewable and 10e increments that's the term of the agreement um you know we're we're investing a fair amount of money into this infrastructure and you know I I've worked with Phoenix I've worked in other m palities not in Phoenix in the valley and Phoenix has always been a good partner so you know again the grand scheme of things I used see Aly we're a rounding area to their Water Resources but it's very important decimal place for the town customers so we're not that big of a challenge for them to balance it out but if things get really tough yeah there's going to be some tough decisions and could that impact us with our Master planning we actually have looked at the town's Wells you brought the wells up the the water company was started in 1954 in Cave Creek and it was it was groundwater-based so the the um the water company had a number of wells and they were tying it together and providing then provided metered service they saw that you know again the aquafer up here isn't as Stout there's a lot of customers up here who are being very successful having individual Wells the wells that they had were having issues with water quality and water volume so in 1990 they had the foresight a little before 1990 to actually go and get a Colorado River allocation they paid for that and then they actually built the infrastructure the pipeline in the treatment plant to get what was called renewable water surface water to the town for a water supply as we look forward with the potential shortages that could be occurring it's it uh we are actually looking at the existing Wells which haven't operated for a number of years and we're going to have to do some testing to find out the water quality and water volume and and see if they are viable to bring back online so as a backup yeah yeah it's another issue we have um all of the currently the town's wastewater treatment plant is has a we have a contract with wrench on a golf course and we send the water to them for irrigation use uh we see a a benefici b we have to try and get a beneficial use out of the waste water because they can't use all our water at all the times of year and they actually get water from our water treatment plant the what we call the backwash water as we treat water we're actually taking material out of the waste water out of the sorry the raw water that's called our backwash water so we send them both water streams uh we look at that as an overall Water Resource and we're looking to see how we can make that more efficient we're trying to see you know um we actually did a study to see if we the town can recharge which you'd think we could well we can actually get good recharge especially down by C Road the problem is we won't be able to recover that water because when I put a gallon of water in the ground it's going to be south of Carefree Highway before we know it so they're recommending that actually we and we've actually approach Phoenix about this is partner with Phoenix there's that golf course South of Carefree um road I was that name of the town that's actually fed by City of Phoenix and on the ReUse system so maybe we can put a pipeline south of Cave Creek Road Carefree Highway sorry and then we could actually supplement their system so instead of them pumping water 12 miles north to get to that golf course we send it South across the road and get and get an exchange with them and then that builds up a credit that then we can use through the interconnect site so we've actually started that conversation with them so yeah when we look at water as a utility you know Water waste water effent water it's actually all water to us it's just we move it in different buckets and yeah elevation we got old mines you know a way we can get it to a certain depth when now doesn't flow down stays here Wells kind yeah from what we actually had a hyd hydrological study sorry T qu were for me there um and they looked at it and again um in the town core there's sort of a dish area but it we're actually don't have very good thick aquifer area up in here it's it's it's viable especially for the private Wells but it's not good for like a water protection well or for recharging um the wells that we actually have in the town core then we we can look at them the groundwater table in some cases it's visible 40 feet down so there's not much room so the the state won't allow you to recharge because they're afraid that you're actually going to raise the groundw table and actually cause damage so they we we're not in a good area for doing long-term recharge um and again the best location for o was along Cave Creek wall wash um Carefree Highway but we put that water in there it's not going to stay there and that aquifer it's going to go down gradient before we know it and we can't get any beneficial use out of except paper water credits and I don't want to I can't put paper in the pipes figure out yeah another interesting good conversation because one of the things that we have with the intergovernmental agreement with Phoenix is that we actually have access to their uh recharge Wells that they have along Cave Creek uh Road um they gave us access to three of the wells so we could if we needed to actually recharge with Phoenix and recover from Phoenix that's actually built into the IGA so we yeah it's just it's costly yeah so it's more it's more cost effective and a lot cheaper for us to actually recharge with the central Arizona project and their large recharge facilities by an order magnitude of about 100 so for the cost of the gallon of water right now so but that is another option it's actually Phoenix agreed to that and we actually have all the permits in place that we could tomorrow place an order with Phoenix saying that we'd like to put water into your wells and generate credits and then and or withdraw that once we generate the credits so I was briefly in California and the water situation there very wrong move around and pump in so yeah yeah we can eventually build the capacity get well use or turn on as needed technology and you talk about equipment I'm like I'm pretty sure most of the Keystone Pipeline equipment is still on option there's a lot of electrical equipment and the part of the build though is like two years like are you building the facility on site or you going off site and then going to trans then they hook them up like most of the electrical equipment and pumps and motors will be you know they're being built off site um uh and brought in another Nuance to the fact that we're accepting um most of the funding is coming from the water infrastructure Finance Authority alone because that's tied to Federal uh uh federal dollars there's actually a a Clauses so we actually have there's a bi americ clause in there and there's also a Davis bacing prevailing wage Clause that we actually have to meet because they're we were receiving in effect uh federal dollars so um you know there's some equipment we can't just purchase equipment it actually has to meet certain criteria Todd is very much aware of this and we actually had to go through and disqualify a couple of vendors that were reaching out to him to try and get on the list to actually get equipment purchase because it wouldn't meet the criteria that we actually have as part of receiving the monies from the federal government through wh uh we actually were was it Japanese yeah yeah it was from Japan so yeah so um yeah so there are restrictions what we could do and then again if you talk about other larger projects meet the scale of our pumps our pumps are big but they're in the scale of something like a keystone project they're tiny so yeah CC build thing know heav wide transport and a weekend get it on site hook it up and save you like six months someone directing a building getting like especially welders to put together prob state steel welding or whatever and there's a lot of so two years sounds to me I think larger facilities assembled faster than two years I know that yeah know you got the workr fiscal year purchase but ways around it I don't know if you can allocate certain vendors faster they've been down they they try to get contracts while the October timel yeah you bring up a lot of good points there but you know I was brought to analogy that you in construction you either get quality cost yeah or thing so if you if you want to do it faster it's going to cost you more money so yeah and just in general the the Phoenix Metro area is still in a a construction boom going on you know we're we still haven't we're one of the driving factors is going to be getting the electrical service so we're going to have a lot of equipment ready right now we're still waiting with APS to get the final design documents from them and we're hearing stories of of projects being held up because like Arizona Public Service can't get Transformer to a new site so we're trying to that's that's one of the driving factors could could uh Todd's group build this faster yes they could but they just don't have the equipment we're we're sitting around waiting for stuff so he's got to schedule everything and he's got other projects he's managing so it's just it's a schedule that works out and and it's really if if in a in a market a few years ago could have probably done it in 18 months but I think it's today's market we we're really being driven by a a 24mth schedule it sounds like a lot of time but it's really a lot of it's going to be hurry up wait for a lot of stuff to come through yeah you know like Sean was saying that it's kind of like the chicken in the egg until you get it approved through APS APS will not place the order for the Transformer Transformer itself is about 80 weeks well APS is bringing in your Transformer shoter service entrance your power feeding the facility comes from APS after it gets past the service entrance then it becomes cap Creek's power so yeah very good questions is anybody else I know we could go all night here I was you I would mind that so question is it possible that in several years from now our utility bill IE specifically the water bill could be stabilized without increasing it or even having it go down given the fact that the $60 million in debt the town once had is now down to about 20 million and there's about I think four to four and a half years remaining on those Whiffle loans uh to where they'll be paid off with this additional new Deb we'll be assuming for this project uh and obviously we're we're reducing uh the overall debt more than what this would add could that stabilize the water bill or do you the town or the water department have already earmarked what you're going to do with the uh when the loans are paid off yeah I'm looking over your shoulder and seeing uh how Maron Our Town engineer who who yeah who saying he wants money for road work yeah um you know the the town took on debt to buy the water company and then the town immediately so people don't remember actually did uh an 18 I think it was might a 16-month project to actually rebuild the water system system right after that and took on another round of debt so the water company I think cost $20 million and then immediately they went in and spent $16 million on approving this system because it was so unreliable at the time that's the debt that's being referred to that those loans were 20-year loans and they actually will be starting to expire uh sadly because of the Aging of the system we're looking at our master plan and we're looking at the um a lot of the projects that are needed uh the waterline uh new Loops that we need to do again the costal waterline now is just just it's it's horrendous to see how much it cost to actually put a water line in compared to what was 10 20 years ago um so our master plan is actually pointing out some projects that we should be doing which will I don't think will um completely replace the debt service that we're paying for but it will show that we do have a good 10 to 15 years worth of work ahead of us and then because we're dealing with water system it runs 247 it's constantly wearing out we constantly have to do Replacements you know the water treatment plant was originally built in 1990 it's been through several upgrades and we recently added some membrane treatment units out there at some point we're going to have to spend some money on rehabbing that facility but we also we've as we've been learning about the systems I've been learning about the system the last five years I've been here we've identified several large projects that we need to take on that's that's coming out of our master plan and we do that master plan then we'll feed into I expect to do an update to the rate study once the master plan's been uh vetted through Council and adopted by Council uh so that we can look to see what the financial impacts are and what we can afford to do you know I'd love to say you know hey we're not going to do rates but I'd be lying to everybody you know we're going to we're being as prudent as we can but realize that from 2009 to 2020 the town didn't have utility rates they were stable well the the backside of that is because there weren't the the cost of electricity the cost of raw water the cost of treating that water the cost of the employees kept going up but the town didn't raise rates so in 2020 we had to take that bandaid off and do some rate increases and we had to do it again in 2022 um there might we have to continueous look at this and maybe some small incremental things the the cost of running the system does change and but there are some large Capital Improvements that we need to look forward be looking forward to doing this project was built into the the 2022 rates I'm thinking about projects that we have to do in the next five to 10 years after this Project's in place and we have to be thinking about that because we have to figure out how we can fund it so and we will be talking again with our Council and with the rate payers because that'll actually go through a public process when that comes forward it's not something that we just go and do I don't just hand it in and someone accept it it actually goes through a public vetting process so everybody will have will see that come up so I don't know if that answered your question roundabout [Laughter] right yeah yeah I believe it actually starts on the on just at the corner of the par parcel so it stays within We're The Cave Creek RightWay is fairly wide at that point so we'll just be starting to widen the pavement off just just I think it if I remember the taper starts about the the property line but because the RightWay is so wide we can widen that out and just bring that in it's similar to the um the store Quest actually their decel it's called the deceleration Lane uh actually is in front of our parcel they start in front of our parcel but our is in the right of way in front of the parcel that we have there so we're actually going to tie the two de acceleration Lanes together with our with this project in fact that's why they call a deceleration so someone can turn in and slow down at the same time and get out of the traffic flow so yeah well any other questions um well to boost your pumps so you will have a you know you'll hear the the the hum of the motor that's why we placed it on the the um away from the homes as much as we can and we shielded it as much as we can it won't be noiseless there'll be above ground Motors um but we've placed them I think as far away from residential homes as we can with this so I don't I don't have a decel level I don't know what that might be but yeah pumps when pumps are running you they do make some noise I anticipate when we're running this that you'll have some constant noise that we'll they'll they'll cycle up and down depending on the system demands is effectively we have multiple pumps for both uh I think it's three pumps for zone four and two pump or four pumps for zone three they'll cycle up and down as the system demands need it so descri yeah again the fact that we're inside of an a wall um will keep the sound from going further the fact that we have the landscaping material the Landscaping burm should should attenuate the sound also so and the fact that you know the mass of the reservoir actually will actually pret prevent some water some of the noise going into the neighbors neighboring around areas so it is a fairly large site and again the the motors are towards Cave Creek Road and the closest neighbor is actually um the store Quest or not the storage unit so to those well it's he's very close yeah yeah so the the yeah the pumps are here are showing at this the south end of the site towards Cave Creek Road that that's where the pumps will be on the on this graphic here so again as far as we could get away from all the properties as we could is where we placed them so the area that's sh in green there what is that that's the landscape Earth and BM SOB yeah yeah no I I think it it's six feet tall Lisa yeah at the at the tallest point because the site slopes down yeah right and then as we and there's a wall behind that yes yes we'll have the wall the Earth and BM landscape material on top of that again it'll start to grow up and then the yellow area will actually have a full um we have an 8 foot wall around it so G be the contact person for us neighbors like these people and then we're right across the street our C comes right out there it is who's going to be the contact person for us when we pull out we've already had issues with the last construction you know back in the morning pulling out and all of a sudden there's this huge sign that we I think a couple of our neighbors hit it no we just left there or they just side up they didn't consider like hey these people leaving for work could hit this sign or courtesy of like just leaving cones and stuff up when they could have just moved it and the traffic would have been two lanes but these construction guys leave and they don't care they don't live around the area so they just leave the thing all weekend and there's just one lane available when you looking go why why didn't this move over so when we run into that issue who do we talk to the direct neighbors that I look right across the street at that they live right next to it we talk to well c will have a project superintendent and pro is a project manager for mgc right and and there go back to the sign the sign will actually have the phone number of the contact person so you can contact that person at any time um when we go to place these signs again it's all about communication when when we're ready to go set those and they're near your house we'll reach out to you guys talk to you about hey the sign's going to go right here is everything okay on in it on that location so we get Buy in from you guys when we're doing that then there will be signs out on the Cave Creek Road as well so and again the town were open so you can reach out to the town and ask us if something's going on again we're bringing uh mgc on board to be the contractors to complete the scope of work um they're responsible for the site if something's directly happening they'll have a contact number you can reach out to if you don't feel you're being satisfied just reach out to us and we'll bring it back in U black and Beach will also have a site representative that'll be on on there their his their number will not be on the sign but they'll be actually out there watching so we'll actually have um I think it's basically part-time so half every half a day that we actually have a black Beach person will actually be on the site and doing paperwork and also just watching the construction also so they never contacted anybody they didn't ask anybody's idea they just plac things out in the middle of the roadway at an angle where when we're pulling out of our subdivision the sign was at an angle and I couldn't even see it your vision it was parallel with my vision so I couldn't see the sign and hit it head on no yeah is that recently Theon Gardener work that was being done with the okay well so it sounds like you're talking about specifically traffic control work on Cave Creek Road okay yeah this is a unique area because right in front of the the site is actually town of care freeze right away so when we actually go to do a and Todd needs to do work in the road is actually he's got to get a permit from carefree and carefree will approve the traffic control plan for the the barricades and all that so that's kind of a uniqueness in the site it's the the the land itself is actually uh Cave Creek but we're actually working in Carefree right away um but yeah we'll try to be prible we will look typically look at that stuff but actually the permitting agency is Carefree when anything happens in care C Creek Road at that point so they'll be the ones signing off on it Carefree that section of Cave Creek Road is actually carefree's right of wayree yeah okay okay well she got the good address but the wrong yes I get the letter whatever that yeah we will because yeah we sent out a week and a half ago I believe so um yeah but we'll get you make we'll get your information before okay okay yeah it includes some of the not this PowerPoint presentation but some of the graphics about the site but yeah we'll I'll get your information after yeah we'll get your information we'll make sure you get a copy of it so okay so um thank you so much for the any more questions to our ciens we have great sta think Sean represents well and there wonderful people working different it's great have someone who shows the quality of service here thank you take the compliment and I thank the staff our team so thank you so much for taking your time tonight um it is a very large project for the town I can't uh you know significance for the water system you know I wish we could do it more than two two years and be done with it but it's just a fact of the construction right now but and we'll be respectful as we can and getting the work done so yes yeah we have no need to go on the back side of