Court appoints receivership of Island Park Water Company

Marc Lutz//September 19, 2023

Island Park Water Company

Court appoints receivership of Island Park Water Company

Marc Lutz//September 19, 2023

A court-appointed receiver has been named for the Island Park Water Company in northeast Idaho.

On Sept. 15, Big Springs Water Company, LLC, was appointed as the receiver of Island Park Water Company, taking on operations until the company is dissolved.

Earlier this year, the Department of Environmental Quality (DEQ) filed a civil complaint in the Bonneville County District Court after the presence of E. coli bacteria was found in several of Island Park’s seven public water systems within Fremont County.

According to a release issued by the DEQ, the complaint was filed against Island Park and its owner, Dorothy McCarty, “for failing to correct significant deficiencies and health hazards, failing to provide accurate and timely public notification, failing to address low or lack of pressure, failing to take required drinking water samples, and failing to identify a responsible charge operator.”

In July, the court ordered that an appointed custodian ― or receiver ― would oversee operations of the water company until it was sold or dissolved. Big Springs was named to the receivership on Sept. 15.

During that time, Big Springs will be under the oversight of DEQ, the Public Utilities Commission and the court, and will be responsible for “dissolving the Island Park Water Company and ensuring (its) seven public drinking water systems are operating properly,” a release stated. “Big Springs is also required to notify all known customers of the court order within seven days.”

The Island Park Water Company serves the Valley View subdivision, Aspen Ridge subdivision, Shotgun North, Shotgun Cherokee subdivision 5, Shotgun Kickapoo subdivision 6, Shotgun South Stevens Lane and Goose Bay Estates.

According to the release, Big Springs will ensure the safe and reliable delivery of water to the customers; respond to audit and discovery requests issued by commission staff; file necessary reports; and respond to both formal and informal complaints.

Big Springs will also “be responsible for managing the day-to-day operation of the systems. This includes routine compliance sampling, operation and maintenance, issuing public notifications, resolving complaints, and other operational and administrative duties. Additionally, Big Springs will work to address the systems’ health hazards.”

Big Springs will also work to transfer the ownership of Island Park Water Company’s systems to another entity for long-term operations, ensuring there is no interruption in service for users.