Valley View sewer commissioners resign; system placed in receivership

FARMINGTON -- Three commissioners overseeing Valley View subdivision's sewer system resigned and a receiver was appointed to take possession of the troubled system and bring it into compliance with state laws and regulations.

Joe Stewart, Jennifer Stewart and John Lipsmeyer served on the Board of Commissioners for Washington County Property Owners Improvement District No. 5, which provides sewer service to residents of Valley View Estates subdivision near Farmington. They stepped down April 21.

Valley View Golf, which managed the sewer system for the district, agreed to a receiver being appointed to take over the system.

Washington County Circuit Judge John Threet issued a restraining order against the Improvement District on April 11 and appointed Jerry Kopke of Communities Unlimited as the receiver.

Kopke didn't know how long the temporary receivership would last, saying it could be six to 12 months. When his work is finished, the receivership will be dissolved and the sewer system returned to the improvement district with new commissioners.

The actions relate to a lawsuit filed in March by Washington County, Farmington and Prairie Grove, Rausch Coleman Valley View and Valley View Estates Subdivision Property Owners Association against the Improvement District and the commissioners.

Don Kendall, an attorney for the commissioners, said they disputed factual allegations in the lawsuit but agreed to consent to a receiver to move forward. They also agreed to cooperate fully with a receiver.

The county's lawsuit, in Washington County Circuit Court, asked for a temporary restraining order against the district, temporary and permanent injunctions and appointment of a receiver to take over the system.

The lawsuit also asked for commissioner offices be declared vacant and the contract between the district and Valley View Golf for sewer services be declared null and void. No action was taken on those motions.

Complaints from residents about the sewer system go back to 2011. Numerous inspections by the Arkansas Department of Environmental Quality found untreated wastewater overflowed from the system's aerator holding pond.

The county's lawsuit asked for the receivership to protect the health and safety of residents in the subdivision and the environment.

Communities Unlimited will post a $10,000 bond and must submit its first report within 90 days. The court authorized the company to employ engineers and other professionals as needed.

Steve Zega, Washington County's attorney, said the resolution was a "good response for the folks at Valley View and in the county's and cities' best interest. We think the number one issue has been resolved today and that's a change in leadership."

Kopke said the first things he'll do is review ADEQ inspection reports and tour the physical plant with representatives of the agency.

An ADEQ lawsuit is pending against the Improvement District. The complaint seeks $420,000 in civil penalties and asks the court to require the Improvement District to meet the terms of an emergency order issued in April 2015, to require remedial measures for wastewater overflows.

NW News on 04/28/2016

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