City of Bremerton v. Kitsap County Sewer District

430 P.2d 956, 71 Wash. 2d 689, 1967 Wash. LEXIS 1004
CourtWashington Supreme Court
DecidedJuly 27, 1967
Docket38801
StatusPublished
Cited by8 cases

This text of 430 P.2d 956 (City of Bremerton v. Kitsap County Sewer District) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Bremerton v. Kitsap County Sewer District, 430 P.2d 956, 71 Wash. 2d 689, 1967 Wash. LEXIS 1004 (Wash. 1967).

Opinion

Barnett, J.

In the 1940’s the Washington State Pollution Commission required the respondent city of Bremerton (hereinafter referred to as “the city”), to build a sewage treatment plant and make other improvements to its sewage system. The ultimate cost of these improvements, as far as this case is concerned, was $1,214,735.41. Of this sum the state of Washington provided in matching funds the amount of $466,350.35; the United States Navy provided $100,000.31; and Local Improvement District No. 229 added $14,319.82. The remainder of the cost, $634,064.93, was the obligation of the city to provide. The city issued water and sewage revenue bonds and made other appropriations as their part in the financing arrangement.

On February 15, 1950, the city and appellant Kitsap County Sewer District No. 1 (hereinafter referred to as *691 “the district”), contracted with each other for the stated objective of “eliminating pollution of the waters of Sinclair Inlet and Puget Sound.” The objective was to be attained by an “adequate disposal of sewage” by the two municipal corporations. To this end it was agreed that the city would build a sewage disposal plant for the parties’ joint use.

The text of the contract will be quoted in its entirety since this appeal raises as an issue its proper interpretation.

Agreement
This Agreement, Made and entered into this 15th day of February, 1950, by and between the City of Bremerton, a municipal corporation of the first class of the State of Washington, hereinafter called “City,” and Kitsap County Sewer District No. 1, hereinafter called “District,” Witnesseth:
Whereas, the City is presently engaged in the construction of the West Side Sewer and Disposal Unit and the District owns and operates a sewer system situated in an area known and described as Navy Yard City and does not own or maintain a sewage disposal plant, and both parties to this agreement are desirous of eliminating pollution of the waters of Sinclair Inlet and Puget Sound by adequate disposal of sewage, and in order to attain the joint objective the parties hereto do hereby Agree as follows:
1. That the City shall construct a sewage disposal plant for the joint use of the City and the District and in connection therewith shall erect two pumping stations known and described as Pumping Stations 8 and 9, which pumping stations shall be located near and connected with the outfalls and comminutors of the District at Webster and Nebraska Avenues in the Plat of Navy Yard City. The City shall construct at its own cost, the necessary pumping plants, together with the pipe, pipeline, and necessary equipment, and thereafter, at its own cost, shall maintain, operate, repair and replace the said pumping stations and necessary equipment therein or used in connection with the operation thereof, for the joint use of the parties hereto.
2. The District agrees to give such easements as it may have power to do for the purpose of connecting the lines of the District to the pumping plants and the sewage disposal line owned by the City and shall, when able *692 or permitted, convey to the City the comminutors now owned by the District which, until their conveyance to the City of Bremerton, shall be maintained and operated by the City.
3. It is understood and agreed that the proportion of the cost which should be assigned to the District for the erection of said pumping plant and the sewage disposal system, is 9.38% thereof, and that in order to pay such costs of the construction and thereafter the maintenance, operation, replacement and repair of the system, each water and sewer user located within Kitsap County Sewer District No. 1 shall pay the sum of fifty cents (50$) per month which shall be added to the water charge made by the City to each resident within the District, and which shall be billed as a part of the monthly water rate to each user, during the time that the Revenue Bonds for the construction of such system are outstanding and unpaid. In addition thereto, the District agrees to collect and pay to the City the sum of fifty cents (50$) per month from each user connected to and using its sewer lines and to certify to the City Treasurer of the City each month the number of users so connected to the lines of the District. Remittance for the monthly charge shall be made by the District to the City at the time of collection thereof in accordance with the regular billing and collection period established by the District. The District shall guarantee the collection of the fifty cent (50$) charge from each of its users by the use of all collection procedures provided by law therefor to said District.
4. This agreement for the collection of monthly charges by the District shall continue for a period of two (2) years from the date of the connection of the lines of the Sewer District to the pumping plants and sewage disposal system, and thereafter, while the City’s Revenue Bonds for the construction of said plant are outstanding and unpaid, until the District shall close its collection office. On the date of these which shall sooner occur, the City and the District shall make other equitable arrangements for the collection of the fifty cents (50$) per month charged to the users of the District lines. The period of two (2) years mentioned herein is.upon the understanding that the District expects to pay off its indebtedness within that period and will thereafter close its present collection office, and that after the closing of *693 the collection office the District and the City will enter into an equitable arrangement and agreement so that collection maybe [sic] made by and through the City.
5. In the event of the annexation of the area embraced within the District by the City, this agreement shall terminate. It is further agreed and understood that under the present financing of the Sewage Disposal System by the City that the period of twenty-four (24) years will be required for its liquidation and the payment of bonds issued for its construction, and this agreement shall continue for the full time necessary to pay off all indebtedness of the system unless prior to that time the area Within the District shall be annexed by the City or the District shall dissolve.
6. It is understood and agreed that the District has heretofore pledged the revenues of the District’s sewer system to guarantee the payment of Sewer Revenue Bonds sold for the cost of acquisition of said system and that said revenue bonds constitute a first and paramount lien against said sewer system and the revenues thereof and that all payments and charges provided for herein are inferior and subject to said revenue bonds. And that so long as any of said revenue bonds are outstanding and unpaid, the District shall not be required to malee any payments to the City or to take any action whatsoever in the collection of the charges provided for herein, which would in any manner impair or reduce the security of the revenue bonds heretofore issued by said District.

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Bluebook (online)
430 P.2d 956, 71 Wash. 2d 689, 1967 Wash. LEXIS 1004, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-bremerton-v-kitsap-county-sewer-district-wash-1967.