City of Philadelphia v. Rendell

888 A.2d 922, 2005 Pa. Commw. LEXIS 747
CourtCommonwealth Court of Pennsylvania
DecidedDecember 20, 2005
StatusPublished
Cited by8 cases

This text of 888 A.2d 922 (City of Philadelphia v. Rendell) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Philadelphia v. Rendell, 888 A.2d 922, 2005 Pa. Commw. LEXIS 747 (Pa. Ct. App. 2005).

Opinions

OPINION BY

Judge LEAVITT.

Before this Court, in our original jurisdiction, are preliminary objections of Governor Edward G. Rendell and the Philadelphia Parking Authority (Authority) to a complaint filed by the City of Philadelphia and the Mayor of Philadelphia, John F. Street (collectively, City), challenging a recent amendment to what is commonly called the Parking Authority Law, 53 Pa. [925]*925C.S. §§ 5501-5517.1 The core of the City’s challenge to this statutory amendment is that it interferes with the City’s home rule powers. It has already been determined by our Supreme Court that the Parking Authority Law is legislation extrinsic to the City’s home rule powers and, thus, its amendment to transfer control of the Authority from the City to the Governor did not infringe upon the City’s home rule powers. In this case, we consider whether another amendment to the Parking Authority Law, which extends the Authority’s administration of on-street parking in Philadelphia for ten years, requires a different conclusion.2 Deciding that it does not, we sustain the preliminary objections.

LEGISLATIVE BACKGROUND

1. The Parking Authority Law.

Although the legislative background of the Parking Authority Law has been aptly summarized in earlier cases,3 a brief historical review is material to understanding the issues in the present case. The General Assembly enacted the Parking Authority Law in 1947 in response to the growing demand for off-street parking in the urban areas of the Commonwealth following World War II, a phenomenon viewed as a statewide problem impacting those residing inside and outside the affected cities. The Parking Authority Law enabled cities, boroughs, and first class townships to create parking authorities in order to provide, administer, and collect revenue from various types of parking facilities.4 Any parking authority created under this enabling act is not considered a municipal instrumentality but, instead, constitutes a “public body corporate and politic, exercising public powers of the Commonwealth as an agency thereof.'” 53 Pa.C.S. § 5505. Among the benefits flowing from a parking authority’s designation as a state agency was the ability to finance construction projects free from the debt limits applicable to local governments5 and the right to engage in proprietary or business-type operations from which local governments might otherwise be precluded. See generally Southeastern Pennsylvania Transportation Authority v. Union Switch & Signal, Inc., 161 Pa.Cmwlth. 400, 637 A.2d 662, 664-65 (1994).

The Philadelphia Parking Authority (Authority) was created in 1950 by City ordi[926]*926nance adopted pursuant to the Parking Authority Law. Initially, the Authority only operated off-street parking garages. These operations continue to the present, and are carried out through leases with the City.6

The Parking Authority Law was amended in 1982 to allow cities to delegate certain on-street parking functions to parking authorities. Some of these functions, such as issuing parking tickets and collecting money from parking meters, are revenue-producing. This revenue is required to be distributed back to the municipality as provided by ordinance or resolution.7 Consistent with this amendment to the Parking Authority Law, the City, in 1988, enacted an ordinance' delegating to the Authority much of the City’s on-street parking services, which previously had been handled by multiple departments of the City.8 The City and the Authority executed an “Agreement of Cooperation” under which the Authority administers the City’s system of on-street parking.9 The net revenues collected by the Authority from on-street parking have been used by the City for its operations.

Throughout its existence, the Authority has issued numerous tax-exempt long-term bonds, some of which are outstanding, to finance parking-related development projects within the City and at the Airport. The City has served as guarantor on the bonds in the event of a default by the Authority. The City made this guarantee knowing that it would have revenue from the parking service contract; the bondholders were also made aware of this revenue stream, to the City. When the guarantee was made and the service contracts were executed, the City was in a position to control the' risks presented by these contractual relationships because, in effect, the City controlled the Authority. Until recently, the Authority’s five-member governing board was appointed by the Mayor. At issue in the present action are three amendments ■ to the Parking Authority Law, Act 22 and Acts 8 and 9, which changed the extent of the City’s control over the Authority.

2. Act 22.

The Act of June 19, 2001, P.L. 287, No.2001-22 (Act 22) was signed into law by then-Governor Thomas Ridge.10 Act 22 added a provision to the Parking Authority Law — applicable only to cities of the first [927]*927class — supplanting the mayor’s power to appoint the Authority’s governing board by placing that appointment authority in the governor.11 Act 22 also required the Authority to transfer up to $45 million of its retained earnings to the Philadelphia School District and to make similar subsequent annual transfers based upon the availability of earnings. 53 Pa.C.S. § 5508.1(q).12

The City filed a complaint in this Court’s original jurisdiction against then-Governor Mark Sehweiker seeking a declaration that Act 22 unconstitutionally infringed upon Philadelphia’s Home Rule Charter and violated certain “statutory pledges” that the City would retain control over the Authority until all bonds were fully met and discharged.13 Governor Sehweiker and the Authority filed preliminary objections in the nature of a demurrer to all counts of the City’s complaint. This Court sustained the preliminary objections, and the Pennsylvania Supreme Court affirmed. City of Philadelphia v. Schweiker, 817 A.2d 1217 (Pa.Cmwlth.2003), aff'd, 579 Pa. 591, 858 A.2d 75 (2004). While the Supreme Court appeal was pending, the City notified the Authority of its intent to terminate the Agreement of Cooperation as of March 31, 2004, and to reassume responsibility for all on-street parking functions.

2. Acts 8 and 9.

Following the City’s announcement that it intended to terminate the Agreement of Cooperation, the General Assembly passed two statutes further amending the Parking Authority Law. The first, the Act of February 9, 2004, P.L. 65, No.2004-8 (Act 8),14 required the City to continue to use the Authority to handle on-street parking and to transfer to the School District,' on an annual basis, the maximum portion of on-street parking revenues deemed available by the Authority’s Board. Act 8 made no provision for the expenses of the Authority, including the need to make interest payments to bondholders.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

R. Vasquez v. Berks County
Commonwealth Court of Pennsylvania, 2022
J. Weeks v. DHS of the Com. of PA
Commonwealth Court of Pennsylvania, 2021
Phantom Fireworks Showrooms, LLC v. Tom Wolf, Governor of the Comwlth of PA
198 A.3d 1205 (Commonwealth Court of Pennsylvania, 2018)
In Re City of Harrisburg, Pa
465 B.R. 744 (M.D. Pennsylvania, 2011)
Brendley v. Pennsylvania Department of Labor & Industry
926 A.2d 1276 (Commonwealth Court of Pennsylvania, 2007)
City of Philadelphia v. Rendell
888 A.2d 922 (Commonwealth Court of Pennsylvania, 2005)

Cite This Page — Counsel Stack

Bluebook (online)
888 A.2d 922, 2005 Pa. Commw. LEXIS 747, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-philadelphia-v-rendell-pacommwct-2005.