BY LISA STAYTON
MOUNTAIN CITIZEN

INEZ — The Martin County Water District (MCWD) filed a lawsuit Thursday against the Big Sandy Area Development District (BSADD). The water district is seeking more than $1 million in damages over what it describes as years of mismanagement on a long-delayed infrastructure project.

The complaint, filed in Martin Circuit Court, centers on BSADD’s role in administering and managing a raw water intake and treatment plant rehabilitation project. The project that dates back to 2018 was to provide new pumps, a rehabilitated water treatment facility, and improved reliability for a system historically plagued by disinfection byproducts, discolored water and service disruptions.

According to MCWD’s lawsuit, the project remains incomplete more than three years after construction began in October 2021.

“As a direct and proximate result of BSADD’s actions, inactions, errors, omissions, mismanagement, negligence and ineptitude, the MCWD Project remains incomplete and unusable for MCWD and its customers,” the complaint states.

On Thursday, MCWD Board Chairman Tim Thoma made a brief comment on the lawsuit.

“MCWD looks forward to resolving our complaint to recover monies spent to keep water in the Crum Reservoir,” Thoma said.

The complaint alleges that BSADD failed to enforce deadlines or contractual standards, issued change orders that increased the construction cost beyond the original $3.47 million, and ultimately failed to deliver a usable system. It adds that BSADD negligently administered and managed the project, acquiesced in incomplete work and overlooked design flaws. The result, MCWD states, is a project that does not function and continues to cost MCWD and its customers.

BSADD entered into a contract Nov. 15, 2018, with Bell Engineering to design the project and prepare construction plans and specifications. In August 2019, it contracted with Xylem Dewatering Solutions to supply two raw water intake pumps: a 600-horsepower unit and a 400-horsepower standby unit. In September 2021, BSADD signed a $3.47 million agreement with Pace Contracting LLC to serve as the project’s general contractor. The agreement required Pace to furnish a performance bond and name MCWD as an additional insured.

Although the water district was not a direct party to any of the contracts, the lawsuit argues that the project was clearly intended to benefit MCWD. Project documents repeatedly refer to MCWD as the “Owner,” and the performance bond and insurance provisions name the district.

A central issue in the complaint is BSADD’s decision to allow Xylem to substitute a 300-horsepower pump for the specified 400-horsepower backup unit. The pump’s job is to move water from the Tug Fork River to the Crum Reservoir on Turkey Creek Road. That pump ultimately failed to perform adequately, rendering the system inoperable. MCWD estimates it will cost $350,000 or more to correct the issue.

Since November 2023, the district has spent over $700,000 to rent and fuel temporary pumps to maintain water levels in the reservoir. It expects to incur additional costs as it undertakes the completion of parts of the project itself.

The suit further claims BSADD failed to hold contractors accountable or ensure work progressed according to agreed-upon timelines. A notice to proceed issued by Bell Engineering on Sept. 22, 2021 required Pace to achieve completion by July 31, 2022. That deadline passed two years ago.

Despite the project’s incomplete status, the complaint states that BSADD relieved Pace and its bonding company of their obligations under the performance bond.

MCWD says it notified BSADD in writing on multiple occasions about the project’s deficiencies and ongoing costs, but BSADD failed to take corrective action.

The complaint also notes that BSADD received both state and federal funds for the project, giving it a pecuniary interest and an obligation to communicate accurate information. MCWD claims BSADD breached that duty, misrepresented the project’s progress and compliance with contract terms, and failed to exercise reasonable care or competence.

The lawsuit seeks damages for costs already incurred, anticipated future expenses and legal fees.

Widespread brown water

The lawsuit comes amid mounting frustration from residents reporting widespread discolored water throughout Martin County. Alliance Water Resources, the contractor managing daily operations for MCWD, attributed the discoloration last week to scale in the distribution system brought on by low water levels and resulting warmer water temperatures in the Crum Reservoir — the same reservoir affected by the incomplete pump project at the center of the lawsuit.

Residents have shared striking images of the impact. Mary Young of Big Branch in Pilgrim described a muddy film that the water left in her bathtub.

“After it drains there’s a brown film like mud on the bottom of the tub,” she said.

In Inez, Gayle Howell showed a white towel streaked with brown after washing it with bleach.

“This water leaves brown streaks on anything white,” she said.

Others echoed similar frustrations. Markitta Maynard reported a $307 water bill and brown bathwater.

“As if we don’t struggle enough,” Maynard said. “I’m so upset.”

Brittany Nicole Preece said she could not even bathe her child, calling the water “the worst it’s been.”

Denise Martin Bowen, who uses a triple under-sink filtration system, displayed a photo of a darkened filter after just weeks of use.

“All three filters were snow white when we put them in,” she said. “This one was brown.”

Attorney William G. Geisen of Stites & Harbison in Covington is representing MCWD.

As of Thursday, BSADD, headquartered in Prestonsburg, had not filed a formal response to the complaint.