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Cave Creek adopts Amendment No.2 to water agreement with Phoenix, extends IGA to August
Summary
The Town of Cave Creek voted 7‑0 on Feb. 3 to adopt Resolution 2026‑03 (Amendment No.2) to extend its water infrastructure intergovernmental agreement with the City of Phoenix until August to allow completion of remaining pipeline and interconnect work; town staff said the town will not bear additional Phoenix costs.
The Town of Cave Creek council unanimously adopted Resolution 2026‑03 on Feb. 3, approving Amendment No.2 to the water infrastructure intergovernmental agreement (IGA) with the City of Phoenix and extending the agreement through August to allow final construction work to conclude.
Town staff described the IGA's history: the original agreement was executed in January 2019 to allow Phoenix to provide domestic and fire water service south of Carefree Highway and to build interconnect infrastructure. An earlier amendment extended deadlines; staff said most major work is complete, including about a mile of 16‑inch main on Cave Creek Road, and that Phoenix's Zone 10 booster station upgrade should be finished in roughly six weeks.
The presenter identified a remaining delay on the Lone Mountain Road segment, a mile of 16‑inch line that runs through Maricopa County and required a redesign after encountering other utilities in the corridor. The presenter said Phoenix expects redesign work to be done by June but requested an extension to August so the town would not need another amendment if Phoenix's schedule slips.
“...we're asking that council agree to this 1 and move forward,” the presenter said, summarizing the request for additional time and the rationale that construction is already underway. The presenter added that Phoenix believes the Lone Mountain work should be done by June and that the extension provides breathing room.
Councilmembers asked whether the town would be liable for any additional Phoenix costs. The presenter responded that the town would not assume additional costs and that the town will likely issue an amendment to its construction manager‑at‑risk (MGC) guaranteed maximum price (GMP) only if necessary. “No,” the presenter said in response to the cost question, adding that MGC had indicated it would not ask for more funds on the project.
The presenter also described where Phoenix must perform three 8‑inch disconnects at Carefree Highway, swap six water meters, and tie into the town's existing 16‑inch pipeline. He said an air gap currently separates the two systems with two closed valves about 10 feet apart and that once Phoenix finishes the remaining items the interconnect site can be started.
The mayor moved to adopt Resolution 2026‑03; the motion was seconded and carried 7‑0. Council members characterized the relationship with Phoenix as key to the town’s future water supply and said the extension helps ensure coordination rather than repeated amendments.
Next steps: staff will track Phoenix's completion of the Lone Mountain redesign and, if necessary, bring contract amendments or updates to council regarding MGC's GMP.
