The Arkansas Natural Resources Commission on Wednesday delayed a decision on whether to approve funding for a pipeline and pump station for the troubled wastewater-treatment system in Bethel Heights during an annexation drive by residents who want to merge with neighboring Springdale.
Commissioners voted to table the proposal until their next meeting, in spite of the recommendation from a Natural Resources Division official who urged them to ignore local politics and approve the loan.
The $11.6 million loan proposal would fund the construction of a pipeline and pump station connecting the Bethel Heights wastewater system to the Northwest Arkansas Conservation Authority near Bentonville.
Residents in Bethel Heights and Springdale recently submitted petitions in their respective cities calling for a special election to decide whether to consolidate.
The signatures of Springdale voters have been certified, City Attorney Ernest Cate said. The City Council will decide during its meeting Tuesday on a resolution calling for a public vote in August.
Cate said he did not know if Bethel Heights has verified its residents on the petitions. Neither Bethel Heights Mayor Cynthia Black nor Robert Rhoads, an attorney hired by the city, returned phone messages and emails Wednesday.
During the videoconference meeting, Natural Resources Division Director Bruce Holland said the commission and the Department of Agriculture "don't get involved in the local politics up there -- whether this is indeed what the city needs to do or doesn't need to do, we don't get into that part of the political argument."
"The city came to us with an application for funding," Holland continued. "We told them what we would require for that funding. The city and the City Council has agreed to that and want us to move forward."
When asked what would happen to the loan debt if Springdale annexes Bethel Heights, Ryan Benefield, deputy director of the Natural Resources Division, said that based on discussions with Springdale, the larger city would begin accepting the wastewater into its system and not complete the pipeline to the Northwest Arkansas Conservation Authority.
If that annexation happens in the near-term, such as this summer, no state dollars would have been spent, Benefield said. If the annexation were to happen 2½ years from now with construction already underway, the debt would become the obligation of the combined cities, he said.
Benefield also seemed to echo Holland on the annexation question.
"We're not able to predict when or if an annexation were to occur, and it's been our practice in the past not to engage in discussions on annexations, even though we've had a lot in our past come before us as a potential issue," Benefield said.
When asked by Commissioner Fred Fowlkes about the best solution in terms of engineering and economics, Benefield acknowledged that "the cheapest option for this project is a connection to the city of Springdale."
"However," he added, "the city of Springdale has said unequivocally that they will not allow connection from an outside city into their treatment plant in this circumstance."
Because their agency does not require entities to annex into another city as part of their loan and grant process, that option is "not on the table," Benefield said.
Springdale Water Utilities continues to operate under a moratorium on new water connections for sewer customers linked to the Bethel Heights' system, said Heath Ward, executive director of the municipal utility. "And we will until somebody from the [Division of Environmental Quality] tells us that they are in compliance"
The department asked the utility June 4 to stop connections because the Bethel Heights' wastewater system was not following the conditions in its operating permit.
The problem with waiting to see what happens with annexation, Benefield explained, is that Bethel Heights is under a consent order from the Arkansas Division of Environmental Quality to move forward with the current proposal.
Delay comes at great cost to Bethel Heights as the city hauls wastewater to the Northwest Arkansas Conservation Authority by trucks, Benefield said.
A city report to the Environmental Quality Division said it pumped 605,000 gallons of excess wastewater from its plant between April 7 and May 5. The water was taken to the conservation authority in Bentonville and a wastewater treatment plant in Huntsville. The city was billed $54,547 for this service.
The city and department signed an agreement in October that ordered officials to develop a plan to close it current wastewater system and develop an alternative plan to remove and treat its wastewater until the plant is closed.
The Environmental Quality Division in August fined the city $101,000 on nine counts of operating its wastewater plants outside of compliance, failing to report test results and falsifying reports.
The department forgave 80% of those fines in November after city officials signed an agreement to continue repairs and renovation of its treatment system until they are operating in compliance with state law.
City officials also agreed to eventually close its current system. The city hired engineers to develop plans for closing the plant, but also upgrade the current system and operate it while the new infrastructure was built.
The state filed a complaint in March in Benton County Circuit Court asking the city to pay the suspended $81,200 in fines, plus attorney fees, for not following the conditions set in the October agreement. The state's complaint also requested a court order for Bethel Heights to take all necessary steps to stop wastewater from pooling on the surface of the treatment site.
Commissioner Roy Reaves recommended putting the proposal on hold until the next meeting. He suggested that when a city is put on notice for not following guidelines, the commission "would be derelict in our duties and [irresponsible] not to consider that as a factor."
"They've been hauling sewage for some time," Reaves said. "So, haul it for another two months. This is not a life-or-death situation. This is something that they should've planned for quite some time ago if it's that critical."
Commissioner Ann Cash and Vice Chairman Bruce Leggitt agreed with Reaves.
"I just feel like we need to give the residents up there a chance to make up their mind whether or not they want this loan and pay these hundred-dollar water bills, sewer bills, or if they want to go the consolidation route," Leggitt said.
The investigation of the wastewater system started in February 2019 after resident Lawrence Bowen filed a complaint with the state about untreated wastewater flowing onto his family's property, which sits immediately east of the treatment plant on Lincoln Street.
