Cave Creek unanimously approves $362,500 land conservation, food bank expansion, water meter modernization

Cave Creek Approves Land Conservation, Food Bank Deal, and Major Water Meter Overhaul Despite Aging Infrastructure Woes

The Town Council of Cave Creek, Arizona voted unanimously on December 15, 2022, to approve three significant infrastructure and land-use initiatives—a 30.6-acre conservation easement, a zero-cost ground-lease arrangement with Foothills Food Bank, and a $700,000 cooperative purchasing agreement to replace failing water meters. The meeting also highlighted troubling operational vulnerabilities: chronic meter inaccuracy, federal court constraints on the Maricopa County Sheriff's Office, and two fatal hiking incidents at Spur Cross Ranch in September.

Harmony Hollow and Spur Cross Conservation Preservation

The centerpiece of the evening was Resolution R2022-17, a joint purchase-sale agreement between the Town of Cave Creek, Maricopa County, and Desert Foothills Land Trust to acquire and permanently preserve 30.6 acres of the Harmony Hollow and Spur Cross conservation area. The town and county would each contribute $362,500—half of the $725,000 negotiated purchase price—with Desert Foothills Land Trust securing the property and placing a perpetual conservation easement on it before transferring ownership to the two public entities as co-owners.

Town Planner Luke Coutsman presented the transaction as the culmination of three years of negotiations that began in 2020 when the town and county commissioned appraisals of parcels in and around Spur Cross Ranch. Stephen Lori Greenberg, the owner of the 4-acre Harmony Hollow parcel, purchased the property in September 2021. The appraised value matched the negotiated purchase price, ensuring the town complied with Arizona law prohibiting acquisitions above fair-market value.

"It's not often that you get to do this." — Luke Coutsman, Town Planner

Coutsman noted that the property, currently zoned DR-190 (density residential, one unit per 190 acres), could have supported six homes had it been developed. The underlying zoning made conservation particularly urgent, and the land trust was "adamant about placing a conservation easement" to prevent future development. Councilmember Silva asked what would become of the underlying zoning once the town and county took possession; Coutsman indicated the town and county would "absolutely" consider amending the zoning to "open space" after acquisition.

Timeline

• Staff presentation: Coutsman outlined the three-year effort, crediting RJ Cardin (Maricopa County Parks) and Vicki Preston (Desert Foothills Land Trust) for "extraordinary effort to get this done."
• Public comment: One resident, David Phelps, praised the transaction and emphasized the importance of the conservation easement, noting that NGOs such as the Land Trust, Food Bank, and Kiwanis provide crucial protection.
• Council discussion: Council members praised the initiative as protecting Cave Creek's character. Kathryn Royer stated the preservation "is one step further to preserving that area from inappropriate development." Mayor Robert Morris highlighted that "very few things that we as a body can do are going to matter 100 years from now; this is one of them."
• Vote: 6-0 approval (Robert Morris, Kathryn Royer, Silva, Vice Mayor Smith, McGuire, and Mayor Bunch all voting "yes").

Opposition

None stated in transcript.

Support

Public comment: David Phelps, Cave Creek resident, spoke in favor, emphasizing the importance of the conservation easement and the role of local nonprofits.

Foothills Food Bank Facility Development

Resolution R2022-18 approved a ground lease and premises lease between the Town of Cave Creek and Foothills Food Bank for a new facility at the town's wastewater treatment plant site. Unlike the conservation deal, this transaction involved a zero-cost exchange: the Food Bank would construct a building on town property, with the town receiving dedicated office and laboratory space, and the Food Bank leasing the remainder at zero cost to the town.

Coutsman explained the genesis of the arrangement: in May, council approved a memorandum of understanding to explore the opportunity after Food Bank leadership approached him requesting suitable expansion locations. Instead of forcing the nonprofit to acquire and rezone commercial land, Coutsman proposed using the underutilized wastewater treatment plant site.

"I learned from my predecessor there's really no bad ideas until you work it through and see how far it takes you." — Luke Coutsman, Town Planner

The facility will be approximately 15,000 square feet total, with the town occupying just under 2,800 square feet for public works and utilities operations. The Food Bank plans to sublet office space to partner nonprofits such as Karen Core, a longtime collaborative partner, on a cost-sharing basis. The existing modular building at the wastewater plant—described as "substandard" for testing and laboratory work—will be auctioned off.

Timeline

• Applicant presentation: Coutsman outlined the zero-cost lease structure; Food Bank President Laurie Olson confirmed subletting arrangements with Karen Core and explained that the partnership provides "nothing to gain" financially for the Food Bank but furthers their mission.
• Public comment: David Phelps again spoke in favor, noting that the Food Bank "has been a tremendous asset to the community" and praising the "classic Kramer move" of landing a new building for the sewer plant's operations.
• Council discussion: Councilmembers highlighted the Food Bank's 30-year service record and the broader benefit to the town core. Coutsman clarified that subleasing was restricted to nonprofits (as the property was purchased from the state for public and community service) and that the Food Bank's existing building would be freed for commercial use.
• Vote: 6-0 approval (roll call: Robert Morris "yes," Ray "yes," Silva "yes," Vice Mayor Smith "yes," McGuire "yes," Monikino "yes," Mayor Bunch "yes").

Opposition

None stated in transcript.

Support

Public comment: David Phelps praised the energy and collaboration behind the initiative and expressed hope it would prove as successful as the effort required to complete it. Councilmember Monikino noted the Food Bank's work over decades and its role in helping vulnerable residents. Councilmember McGuire called the Food Bank "a tremendous asset to the community" and underscored the humanitarian importance of such organizations.

Water Meter Modernization Crisis and Cooperative Purchasing Agreement

The most technically complex item—Cooperative Purchasing Agreement with Core-Maine LP for Neptune water meters and equipment (up to $700,000)—revealed systemic infrastructure failures that have consumed excessive staff time and resulted in significant under-reporting of customer water usage.

Water Director Sean presented a detailed analysis of the town's aging metering infrastructure. The Cave Creek water system, purchased in 2007, contained approximately seven different meter types. A 2012 effort to convert to Neptune meters was completed in Desert Hills (approximately 1,900 meters) but was only partially implemented in Cave Creek. Currently, the Cave Creek system comprises a mix of older non-Neptune meters with Itron radio transmitters, most of which are 17 years old.

The Crisis in Numbers

Sean presented sobering diagnostic data:

• 30 of 106 tested non-Neptune meters (28%) under-reported usage by 5–18%, violating the town's own three-percent accuracy standard in town code.
• Itron radio transmitters are failing at 10–20 units per month; warranty expires after 10 years, and most devices installed are approaching or exceeding that threshold.
• Staff dedicate 2–3 days each month to meter reading in Cave Creek alone; subsequent re-reads due to failed radio signals consume an additional 2–3 days.
• 80–100 re-read requests per reading cycle indicate radios failing to transmit or meters malfunctioning.

The situation is more acute in Cave Creek than Desert Hills (where Neptune conversion is complete): Desert Hills requires a single staff member to read 1,900 meters in one day, whereas Cave Creek demands two days of driving with two different radio devices in the vehicle, followed by extensive re-reading.

The Proposed Solution

The cooperative purchasing agreement with Core-Maine LP (piggybacking on Goodyear's existing contract) aims to replace all non-Neptune meters in Cave Creek (approximately 2,600 accounts before Carefree's planned disconnection of 550 accounts). The town has budgeted $150,000 for fiscal year 2023 in the capital improvement program and identified $600,000 across the subsequent four years. Sean requested authority for up to $700,000 over four years, including $600,000 for meter replacement and an additional $100,000 for new meter purchases to maintain inventory for customer installations.

Neptune meters offer advantages beyond accuracy:

• Real-time data via an Advanced Metering Infrastructure (AMI) system that allows customers to monitor usage and alerts staff to anomalies (high or low usage) before bills arrive, enabling proactive customer communication.
• Unified radio and meter compatibility, eliminating the patchwork of Itron variants (40, 50, 60, and 100 series) in the current system.
• Eligibility for a $500,000 EPA WaterSense grant (application pending) to fund conversion to a full AMI system, which the town believes will support conservation goals.

One-inch meter costs have risen to $328 per unit (from $270 last year) due to supply-chain inflation and rising brass prices. Installation fees through contractor Metering Services amount to $75 per meter tested or $25 per meter for testing alone; the town anticipates batch installations at approximately $50–55 per meter once contracted work is aggregated.

Timeline

• Staff presentation: Sean outlined the meter failures, the budget constraints, and the benefits of Neptune conversion. He emphasized that the current situation forces reactive meter replacement as devices fail, whereas a capital program would enable proactive, systematic replacement.
• Council discussion: Councilmembers extensively questioned the economics, asking whether the $700,000 investment would yield a return. Vice Mayor Smith asked whether the $75 installation fee was included in the purchase price (it is not; it is a separate contractor cost). Councilmember Silva noted that 30% meter failure is "a little bit of a problem" and asked about the payback period.

Sean estimated a 10-year payback based on recaptured revenue from under-reported consumption, though he cautioned the figure was speculative given the variability in household water usage. However, he suggested the true payback might be 5–7 years when accounting for staff-time savings (eliminating 2–3 days monthly of re-reads and meter maintenance).

Robert Morris requested that the agreement be structured for annual reauthorization rather than a four-year lump-sum commitment, arguing that the town should gather economic data from the first year's implementation before committing to a multiyear program. Vice Mayor Smith and others pushed back, contending that requiring Sean to return annually would waste administrative resources; Robert Morris relented.

• Vote: The council initially debated whether to authorize the full $700,000 over four years or limit the first year to $150,000 (the budgeted amount). Sean clarified that the cooperative purchasing agreement grants authority to spend up to $700,000, but actual expenditure is limited by budget appropriation. The council approved the motion as stated—authorizing up to $700,000—with the understanding that Sean would pursue funding through the EPA grant and that subsequent years' funding would be allocated through the normal budget process.

Final vote: 6-0 approval (roll call: McGuire "yes," Monikino "yes," Robert Morris "yes," Ray "yes," Silva "yes," Vice Mayor Smith "yes," Mayor Bunch "yes").

Opposition

None formal; however, Robert Morris expressed skepticism about multiyear authorization without measurable outcomes, requesting year-one implementation before committing further.

Support

Councilmember Silva noted that water losses due to meter inaccuracy represent unaccounted-for-water in the town's annual reports to the Arizona Department of Water Resources and that improving meter accuracy is essential. Vice Mayor Smith supported moving forward with the full authorization, trusting Sean's administration. Councilmember Ray underscored that the meter replacement program is "not a bad deal" given the staff-time savings alone.

Project Details

• Case number: Not applicable (cooperative purchasing agreement with Core-Maine LP via Goodyear contract).
• Applicant / developer: Town of Cave Creek (water department).
• Attorney: Not stated in transcript.
• Location / address: Town of Cave Creek water system, primarily Cave Creek service area.
• Current system: Mix of seven meter types with 17-year-old Itron radio transmitters; approximately 2,600 accounts in Cave Creek system (pre-Carefree disconnection).
• Proposed system: Neptune T10 meters with R900 radio antenna; compatible with Advanced Metering Infrastructure (AMI) for real-time customer data.
• Density / units / square footage: Approximately 2,600 meter replacements planned over four years; estimate does not apply.
• Changes from previous version: First systematic capital replacement program; previously reactive ("ad hoc") replacement as meters failed.

Vote Breakdown

Resolution R2022-17 (Conservation):

• Final: 6-0
• Yes: Robert Morris, Kathryn Royer, Silva, Vice Mayor Smith, McGuire, Mayor Bunch
• Recusal: Councilmember McGuire (declared conflict due to service on Desert Foothills Land Trust board)

Wait—the transcript shows McGuire recused himself at the outset. The final vote listed six votes including McGuire. Individual votes were not named for this item in the vote tally; the transcript only confirms all six voted "yes."

Resolution R2022-18 (Food Bank):

• Final: 6-0
• Yes: Robert Morris, Ray, Silva, Vice Mayor Smith, McGuire, Monikino, Mayor Bunch (roll call)

Cooperative Purchasing Agreement (Water Meters):

• Final: 6-0
• Yes: McGuire, Monikino, Robert Morris, Ray, Silva, Vice Mayor Smith, Mayor Bunch (roll call)

Outcome & Next Steps

Conservation: Maricopa County Board of Supervisors will consider the same purchase-sale agreement at their next meeting (approximately November 16). Upon approval by both entities, Desert Foothills Land Trust will acquire the property, record the conservation easement, and transfer ownership to the town and county as co-owners. The town and county will subsequently consider rezoning the property from DR-190 to open space.

Food Bank: The Food Bank and town will finalize lease documents. Construction is anticipated to begin within 12–18 months. The existing modular building at the wastewater treatment plant will be auctioned. The town will occupy approximately 2,800 square feet of office and laboratory space at no cost; the Food Bank will occupy the remaining 12,200 square feet and may sublet to compatible nonprofits such as Karen Core.

Water Meters: The cooperative purchasing agreement with Core-Maine LP is now in effect. The town will initiate the first-year meter replacement program with the $150,000 appropriated in fiscal year 2023. Sean will present annual updates on progress, costs (which may increase as inflation and supply-chain pressures continue), and the status of the EPA WaterSense grant application. If the grant is awarded ($500,000), the town will pursue full conversion to an AMI system; if not, the council will be asked to fund the conversion through alternative means.

Controversies & Context

Federal Court Constraints on Sheriff Operations

Captain Ryan Varanos, Deputy Commander of the Maricopa County Sheriff's Office substation covering Cave Creek, briefed the council on law enforcement operations under a federal court order with a court monitor. The MCSO faces ongoing scrutiny related to Internal Affairs case processing times, with a recent contempt finding. The office operates with approximately 45–50 personnel in the substation (including administrative staff) but deploys only 5–6 deputies on patrol at any given time to cover Cave Creek, Carefree, Desert Hills, Anthem, Paradise Valley, and unincorporated county areas.

"We are able to deploy our resources according to what we are given by executive command downtown." — Captain Ryan Varanos, MCSO Deputy Commander

Varanos defended the service level, noting that the sheriff's office provides additional resources at no cost (bomb disposal, K-9, SWAT, helicopter) and that deployment is driven by contract obligations and call-for-service data. However, he acknowledged nationwide law enforcement recruitment and retention challenges, compounded by pension reform in Arizona that has reduced incentives for new officers.

Mayor Bunch expressed frustration with what he called "a ridiculous federal government" constraining the sheriff's office:

"I think it's ridiculous that law enforcement Maricopa County is constrained to the point they are by the federal court… we are absolutely being constrained by a ridiculous federal government." — Mayor Robert Bunch

Varanos clarified that the court order (under Judge Snow) requires investigation of all misconduct allegations and has shifted Internal Affairs investigations from substations to a centralized Professional Standards bureau, adding administrative burden. He cautioned that the federal oversight, while necessary to address historical abuses, creates operational friction that affects day-to-day patrol deployments.

Traffic enforcement and crime: Varanos reported that speeding citations in Cave Creek have increased markedly: 222 in 2020, 183 in 2021, and 302 so far in 2022, reflecting increased enforcement visibility. DUI arrests remain consistent (13 in 2020, 12 in 2021, 6 in 2022 year-to-date). Drug activity is "almost non-existent" in Cave Creek; homeless encampments are minimal. The town has no significant public safety concerns relative to surrounding Maricopa County communities.

Trail Safety and Hiking Fatalities

Two fatal hiking incidents occurred at Spur Cross Ranch in September 2022. Fire Chief Ford and Daisy Mountain Fire District Chief Tobin reported that both hikers left marked trails, became disoriented in the Sonoran Desert terrain, and were unable to self-rescue. The incidents resulted in helicopter deployment and extensive search operations.

Causes identified:

1. Overestimation of ability and underestimation of trail difficulty.
2. Cell phone battery depletion: Hikers' phones continued searching for signal coverage in remote areas, draining batteries before rescue.
3. Deviation from marked trails made location-finding difficult for responders.

Recommended mitigations:

• Improved trail signage to educate hikers on difficulty and to remind them to stay on marked trails, notify others of their plans, and manage cell phone battery via airplane mode.
• Grant application to Firehouse Subs Foundation for a four-wheel-drive off-road rescue unit with stretcher capacity, enabling ground-based medical evacuation without helicopter deployment.
• Partnership with Tonto National Forest and county parks to coordinate signage improvements.
• Educational messaging emphasizing that hikers should avoid hiking during excessive heat warnings, ensure others know their plans, and preserve cell phone battery for emergency use.

Chief Tobin noted that 9-1-1 call processing was investigated following resident complaints about delays during a trailer fire at a downtown Circle K. The investigation found no actual delay; rather, the sheriff's primary answering point (PSAP) received an extraordinary number of 911 calls from bystanders in a short window, which the system prioritized appropriately. Subsequent callers were queued because the initial call had already triggered emergency response.

Water System Challenges

Beyond meter failures, the quarterly utilities report (presented by Water Director Sean) revealed ongoing water-loss and infrastructure challenges:

1. Non-revenue water losses: The town delivers treated water but the billed revenue does not account for all delivered water, indicating losses from leaks, flushing, or measurement inaccuracy. The gap persists despite proactive leak detection efforts.

2. Recent distribution line breaks: A six-inch Cave Creek Road waterline break required careful excavation around existing utilities and emergency response; a separate six-inch line break south of Cave Creek Wash, 30 feet long and 12 feet deep, resulted in significant material removal. Both required contractor support and consumed substantial staff time. The town attributed failures to poor pipe bedding, age-related stress, and ground settlement.

3. Carefree water system disconnection: The Town of Carefree is gradually taking over water service to approximately 550 accounts in neighborhoods A, B, and C. The planned November 14 water shutdown will allow the final disconnect at Galloway Drive. The towns maintain metered interconnects at Bella Vista and (potentially) Cave Creek Road, with physical disconnects preventing unintended flow between systems.

4. Phoenix interconnect project: The town is advancing the $11+ million Phoenix water interconnect, currently at 50% design. The project will add a dual-zone booster station, one-million-gallon reservoir, and enhanced pressure management, reducing reliance on the aging wastewater treatment plant booster system and enabling system redundancy. The town applied for a $9.5 million WIFIA loan (Water Infrastructure Finance and Innovation Act) to fund the project; EPA WaterSense grant ($500,000) is also pending. Construction manager at risk selection is targeted for early January 2023.

9-1-1 Response and Communication

Vice Mayor Smith asked whether the town could better communicate to the public that 9-1-1 calls are not all handled instantaneously and that queuing is normal during emergencies. Chief Tobin acknowledged the challenge: callers have high-stress expectations ("9-1-1 should be instantaneous") but the system is under capacity strain due to attrition in dispatch centers. The solution is limited without hiring—a nationwide problem. Regular PSAs reminding the public to call only for true emergencies help, but real-time messaging that a call has been received is difficult to implement without human-dispatch resources.

Duration

• This meeting: Approximately 4 hours (with one 5-minute break).
• Major items discussed: Conservation (30 minutes), food bank (20 minutes), sheriff briefing (30 minutes), financial report (40 minutes), fire/EMS report (45 minutes), water meter purchasing (60 minutes), utilities report (45 minutes), plus public announcements and administrative items.

Other Notable Items

Financial Performance: The town received the Government Finance Officers Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting for the 10th consecutive year (fiscal year 2021) and the Distinguished Budget Presentation Award for the 3rd consecutive year (fiscal year 2023). Finance Director Shirley Fox, retiring in December, was honored for her clarity and accuracy in financial reporting; Accounting Manager Mitzi Callow will assume Fox's duties.

Tribute: Mayor Bunch announced the passing of former Council Member Susan Clancy, a multi-term school board member, and honored her public service.

Quarterly Financial Report Dashboard: The finance office introduced a new quarterly dashboard reporting system designed to improve transparency. General fund revenues are running 16.4% of annual budget at 25% through the year (sales tax lagging slightly due to collection timing). Enterprise funds (Wastewater, Cave Creek Water, Desert Hills Water) are all operating with revenues exceeding expenses. Town debt has fallen from $63 million to approximately $25.2 million, with most obligations to be repaid within five years.