Water-Sewer District 5 Commissioners Ask for County Takeover Amid Recall, Conflict Issues

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The long-feuding commissioners in Onalaska’s Water-Sewer District 5 have finally agreed on one thing: it’s time for Lewis County to take over the troubled district.

“(District 5) Commissioners request that the Lewis County Commissioners join with us in negotiating the means acceptable to the District and to the County concerning a transition and the conditions under which the County would assume ownership and operation of Lewis County Water and Sewer District 5,” reads a resolution signed by commissioners Virgil Fox and Deborah Hilliard. 

Fox has long faced conflict-of-interest concerns over the more than $200,000 the district owes him. As the developer of the Birchfield community the district encompasses, he sold the district water infrastructure while also serving as commissioner. That issue led neighboring District 2 to revoke its agreement to provide sewer services for District 5, which in turn forced Lewis County to stop issuing building permits in the district. 

Hilliard, meanwhile, is facing a recall effort that claims she is behind an illegal “conspiracy” to strong-arm Fox out of office, charges she vigorously denies. The district’s third commissioner, April Toups, resigned abruptly earlier this year, after replacing another commissioner who also resigned abruptly. It’s unlikely Fox and Hilliard will agree on a replacement for Toups — if anyone even wants the job — as most of the two dozen or so voters in the tiny district have been embroiled in the long-running conflict on one side or another.

Lewis County officials attempted to broker a mediation between Districts 2 and 5, but concluded last month that conditions had deteriorated to the point that further outreach would be pointless. Civil deputy prosecutor Eric Eisenberg suggested the county refocus its efforts on exploring what would happen if the county were forced to take over the district, which led Hilliard to follow up on that suggestion.

“That was the first that I had ever heard of (a takeover), that we could do this without going bankrupt,” Hilliard said. 

Hilliard met with Eisenberg and county manager Erik Martin, who told her the county was still in the “early stages” of looking into the possibility. It would help, they said, if the district could produce a document showing that such an action would have the support of its commissioners.

“It’s something that I would be comfortable with, because then I would feel that the district was in neutral hands and that somebody would be operating the district,” Hilliard said. “I would feel comfortable it was being operated as a business, with the best interests of everyone in mind.”

At the district’s Feb. 27 meeting, Hilliard brought up the idea, and despite their ongoing differences on almost every other issue, Fox was on board as well.



“Commissioner Fox decided that was something he would be interested in pursuing further and seeing if that’s something that could be worked out,” Hilliard said. “I guess it’s in the county’s hands now to see how fast they can make that happen. It’s a very lengthy process, I understand. …. At least it’s a start, and I think it would be a resolution for the issues in our district. I’m hopeful.”

Eisenberg, when first bringing the issue before county commissioners last month, acknowledged that it could be an ordeal.

“Start in a serious way looking into what happens if no deal is reached and the county is asked either by the state government or the district themselves to take over for them,” he said. “Let’s investigate how it could be — or not — that the county could end up taking over the work of this and other water districts. … That’s going to take time to learn. It’s a big deal.”

Hilliard was scheduled to take part in a hearing Monday in Lewis County Superior Court to determine whether the charges filed against her in a recall petition were well-established enough to allow the recall to go before voters. The recall was brought by Dennis Eros, the candidate Hilliard defeated in the last election after their 11-11 tie was decided by a coin flip

That hearing was postponed, after Hilliard said she had failed to put together a written defense because Fox had refused to vote to allow the district fund her legal representation. A resolution passed by the district in 2017 entitles its commissioners to a legal defense for actions resulting from their duties, but District 5’s lawyer may be called as a witness in the case, so outside counsel was necessary.

According to Hilliard, Fox refused to authorize payment to an outside law firm, so she was left scrambling at the last minute to put together written materials to supplement her case. She asked for more time, and Judge James Lawler agreed that it would be helpful to have some materials to read up on before the hour-long hearing takes place.

“I’m inclined to allow some time, simply because I would like to have some response and have some clue as to what your position is,” he said. “It would be helpful to have a written response on this.”

Lawler postponed the hearing to 9 a.m. March 25, giving Hilliard until March 18 to submit a written response defending her position.