Opinion ID: 1752738
Heading Depth: 3
Heading Rank: 2

Heading: Whether the Decision Is Arbitrary

Text: Next, Bentonville argues that the decision is arbitrary because ASWCC altered Centerton's project without the knowledge or consent of anyone, the selection of the Two-Ton regional water system to provide the water is arbitrary, and permanently limiting Bentonville to serving only its currently existing customers is arbitrary. Administrative action may be regarded as arbitrary and capricious where it is not supportable on any rational basis. To have an administrative action set aside as arbitrary and capricious, the party challenging the action must prove that it was willful and unreasoning action, without consideration and with a disregard of the facts or circumstances of the case. We have stated that the requirement that administrative action not be arbitrary and capricious is less demanding than the requirement that it be supported by substantial evidence.... [O]nce substantial evidence is found, it automatically follows that a decision cannot be classified as unreasonable or arbitrary. Arkansas Professional Bail Bondsman v. Oudin, 348 Ark. at 55, 69 S.W.3d at 860 (quoting Arkansas Cont. Lic. Bd. v. Pegasus Renovation Co., 347 Ark. 320, 64 S.W.3d 241 (2001)). As we have already concluded, ASWCC did not materially alter the project by excluding any area annexed by Bentonville prior to March 15, 2001. Furthermore, the selection of the Two-Ton regional water system, as specified in the original PER, is not an arbitrary decision of the Commission. In fact, ASWCC's order does not prohibit the use of water from other sources so long as the variance is approved by ASWCC. Moreover, the ASWCC order does not limit Bentonville to serving only its current customers; rather, the decision permits the Centerton water project to service customers located in an area that Bentonville may or may not at some future time annex or include in a future water project application. ASWCC rules anticipate that water projects may overlap. See ASWCC Rule 601.1(G) (defining project to include [p]rojects that would serve areas that are being served by other entities or projects that would serve areas on which other projects have, or have applied for, water plan certification). In any event, the ASWCC order specifically provides that Bentonville and Centerton, with ASWCC approval, may negotiate a modification in the responsibility to provide service to residents in the area or share water lines where the two cities determine it to be economical and beneficial. We conclude that Bentonville's arguments on this point are without merit.