ROBERT T. WILLIAMS, OWEN HONEYSUCKLE, ROSE WHITE, WAYNE NUNNERLY, LELA BURNS, AND BARBARA MITCHELL HICKS APPELLANTS
CITY OF SHERWOOD, ARKANSAS; AND CHARLES HARMON, KENNETH KEPLINGER, KEVIN LILLY, MARINA BROOKS, MARY JO HEYE, MIKE SANDERS, TIM MCMINN, AND TONI BUTLER, IN THEIR OFFICIAL CAPACITIES AS ALDERMEN OF THE CITY OF SHERWOOD, ARKANSAS APPELLEES
FROM THE PULASKI COUNTY CIRCUIT COURT, THIRD DIVISION [NO.
60CV-14-4864] HONORABLE CATHLEEN V. COMPTON, JUDGE
F. Lane, P.A., by: James F. Lane, for appellants.
Stephen Cobb, Sherwood City Attorney, for appellee.
WAYMOND M. BROWN, JUDGE
case is the latest in a series of challenges to issues
addressed in and related to the Pulaski County Circuit
Court's order entered in October 2005 in which Central
Arkansas Water ("CAW") was appointed as receiver
for Brushy Island Public Water Authority. In the instant
appeal, appellants argue that the circuit court erred in
denying their petition for declaratory judgment and granting
summary judgment in favor of appellees City of Sherwood et
al. Finding no justiciable controversy, we affirm.
Brushy Island community was annexed into the City of Sherwood
as a result of the 1974 and 1982 general elections. Water
service was provided to Brushy Island residents exclusively
from the Brushy Island Water Association, Inc., a nonprofit
corporation. On July 15, 2003, during an annual membership
meeting, Brushy Island Water Association, Inc. was converted
to a public water authority known as Brushy Island Public
Water Authority ("Authority") pursuant to and in
accordance with Arkansas Code Annotated section 4-35-202
(Supp. 2003). Some residents of the Brushy Island community
challenged the conversion vote; however, on October 18, 2005,
the Pulaski County Circuit Court entered an order denying the
challenge, granting the Authority's motion for
appointment of a receiver, and appointing CAW as receiver for
on evidence indicating the state of disrepair of the
Authority's water-system facilities, CAW was ordered to,
within six months of the date of the order, contract for and
begin construction on the improvements necessary to bring the
system up to the standards of other water systems operated by
CAW. Specifically, CAW was ordered to install improvements,
detailed in the order as follows:
The Improvements consist of the installation of approximately
4400 Linear Feet (LF) of 24-inch Ductile Iron (DI) pipe, 4900
LF of 12-inch DI pipe, 4900 LF of 8-inch DI pipe, 4300 LF of
3-inch PVC pipe, and 5900 LF of 2-inch PVC pipe and
appurtenances. The Improvements will also include the
installation of 10 new Fire Hydrants, 320 new service meters
and Pressure Regulators, as well as repair and/or replacement
of existing service lines as required.
financing for the improvements to the water system was
addressed in the order as follows:
37. CAW has estimated that the costs for construction and
completion of the Improvements will be approximately $1, 949,
100 (the "Project Costs").
38. CAW shall contribute approximately $165, 690 toward
payment of the Project Costs.
39. The City of Jacksonville, Arkansas has agreed to pay CAW,
for the use and benefit of Brushy Island, the sum of
approximately $554, 703 as a contribution toward payment of
the Project Costs.
40. The City of Sherwood, Arkansas has agreed to pay CAW, for
the use and benefit of Brushy Island, the sum of $170, 000 as
a contribution toward payment of the Project Costs.
41. Brushy Island is currently indebted to Arkansas Natural
Resources Commission in the approximate amount of $100, 000
(the "Old Debt"). Arkansas Natural Resources
Commission shall forgive all late fees and other default
charges due on the Old Debt and refinance the outstanding
amount of the Old Debt in the new financing as provided in
paragraph 42 hereof.
42. Within sixty (60) days of the date of this Order,
Arkansas Natural Resources Commission shall enter into an
agreement with CAW, as receiver for Brushy Island, to loan
Brushy Island the remaining balance of the Project Costs,
including any costs overruns, and the refinancing of the Old
Debt, after crediting the contributions referred to in
paragraphs 38, 39 and 40 hereof, provided such amount does
not exceed $1, 353, 600 (the "New Debt"), in
accordance with the terms set forth on the term sheet
attached hereto as Exhibit "C" and such
other terms and conditions as are usual and customary in
Arkansas Natural Resources Commission ...