City of Quincy v. Massachusetts Water Resources Authority

2 Mass. L. Rptr. 540
CourtMassachusetts Superior Court
DecidedAugust 10, 1994
DocketNo. 93-4151
StatusPublished

This text of 2 Mass. L. Rptr. 540 (City of Quincy v. Massachusetts Water Resources Authority) is published on Counsel Stack Legal Research, covering Massachusetts Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Quincy v. Massachusetts Water Resources Authority, 2 Mass. L. Rptr. 540 (Mass. Ct. App. 1994).

Opinion

Doerfer, J.

Plaintiffs, the City of Quincy (“Quincy”) and the Boston Water and Sewer Commission (“Commission”) commenced this declaratory judgment action to obtain a ruling that the defendant, Massachusetts Water Resources Authority (“MWRA”) used unlawful procedures to allocate water and sewer charges. The case came before the court on June 29, 1994 for hearing on plaintiffs’ motions for partial summary judgment. For reasons stated below, plaintiffs’ motions are denied.

BACKGROUND

The pleadings, affidavits, answers to interrogatories, and requests for admissions in this case reveal the following undisputed facts. In 1984, the legislature enacted St. 1984, c. 372, §1 creating the MWRA, a body which was to operate, regulate, finance, and improve the system of water delivery and sewer collection, treatment, and disposal for forty-three cities and towns (“local bodies”) in .the Metropolitan Boston area.2 The MWRA assumed the responsibilities of its predecessor, the Metropolitan District Commission (“MDC”). The MWRA sewage collection system consists of approximately 230 miles of interceptor sewers which collect wastewater flows from 5400 miles of local sewers.

Quincy owns approximately 240 miles of sewers which connect to the MWRA system. Over the past decade, Quincy has spent approximately $2,125,000 on programs to reduce the amount of infiltration of groundwater into sewers caused by defective pipes and inflow of stormwater into its local sewers, and on programs to conserve water. Quincy has spent approximately $8,180,000 on upgrading and improving its sewer system.

In 1992, Quincy received the third highest assessment for MWRA sewer services, or $9,303,672, equal-ling approximately four percent of the total amount which the MWRA had assessed. The 1993 assessment totaled $10,605,978. The 1994 charges increased by approximately fourteen percent.

The Commission owns and operates approximately 1200 miles of water distribution pipes and 850 miles of local sewers connecting to the MWRA’s water and sewer systems. The Commission alleges that it has spent over $300 million to improve,, rehabilitate, and modernize its water and sewer systems. It has begun programs to reduce or eliminate infiltration of groundwater and inflow of stormwater and to reduce the strength and volume of flows into its system.

The Commission has historically received the highest assessment for water and sewer services. In 1992, the MWRA Board of Directors allocated $26,592,615 (approximately forty-four percent of the total water charges) to the Commission. In 1993, the Commission’s rates equalled $28,607,493, or forty-five percent of the total charges. In 1992, the Commission owed $69,183,441 (thirty percent of the total) for sewer charges, and in 1993, the amount due rose to $72,722,280. The 1994 amounts increased by $2,014,878 for water use and by $3,538,839 for sewer use.

From 1985 to 1994, MWRA used the same multi-tiered process to allocate annual sewer charges3 among the local bodies as had been used by the MDC.4 First, the MWRA calculated the total charges to be collected for that fiscal year, dividing the costs between operation and management (“O&M”) expenses and capital costs.5 Then, looking to census reports, submissions from the local bodies and industrial users, and measurements from treatment plants, the MWRA utilized the “population and population equivalent” (“P&PE”) method to assess a portion of the total charges upon each local body.

The P&PE methodology allocated the costs to be assessed according to volume (the typical flow to [541]*541treatment plants), capacity (the incremental system size required to handle peak flow), and suspended solids (the solid materials carried in the wastewater stream). The underlying assumption of the P&PE method was “that the relative contribution of wastewa-ter flow and loadings from a community is approximately proportional to the community’s relative population." Plaintiffs Joint Document Appendix for Their Motions for Partial Summary Judgment, Exh. 28 (“Joint Appendix”). Under the P&PE method, the O&M expenses were allocated according to (i) the proportion that each local body’s contributing population6 bore to the total population within the MWRA system and (ii) the proportion that the local body’s contributing “population equivalents”7 for large industrial users bore to the “population equivalents” of all large industrial users in the MWRA system. The capital or debt service costs were apportioned to each local body according to the ratio which that body’s census population and population equivalents bore to the MWRA system’s total population and population equivalents.

The MWRA admitted in 1988 through its Acting Director of Engineering that the P&PE method did not identify actual flows generated by each local body or provide incentives for local bodies to reduce their wastewater flows or to promote conservation. Defendant Massachusetts Water Resources Authority’s Response to Plaintiff Boston Water and Sewer Commission’s First Set of Requests for Admissions, Nos. 3, 8. The methodology did not give account to local bodies’ differing rates of infiltration and inflow. Id., No. 7. The MWRA also admitted that it never determined whether the plaintiffs’ historic investments in their sewer systems were disproportionate to the investments of other local bodies. Id., Nos. 27, 28.

In 1985, the MWRA began to discuss alternative methods of allocating charges for sewer and water use. The MWRA published a “Request of Qualifications/Proposals for the Preparation of a Comprehensive Study of the Environmental, Social, and Economic Impacts of Authority Charges and an Analysis of Potential Rate Methodologies” seeking consultants to “d. determine 5-10 year expenditures by community for: 1) capital outlay for facilities and lines, and 2) operation and maintenance; . . . g. determine which, if any, member communities employ a system of rate charges that promote conservation; i. determine which communities are expending significant revenue to eliminate water loss and/or to prevent inflow infiltration or overflow in their sewer system . . . ; and j. develop guidance for the [MWRA] on how to encourage retail rate structures which conform to applicable law and MWRA policies.” Joint Appendix, Exh. 9, at 2.

The MWRA engaged several consulting firms, including KMG Main Hurdman, Black & Veatch, and Peat, Marwick, Mitchell & Co. (“Peat, Marwick”) to examine alternative methodologies. In its agreement with Peat, Marwick, for example, the MWRA requested a study “to enable the [MWRA] to implement wholesale water and sewer rate methodologies . . . which are consistent with the purpose of its enabling legislation.” More specifically, the MWRA assigned the task of determining the impacts of alternative methodologies, which were to be described “using at least the following measures: a. wholesale cost, b. ratio of wholesale cost to retail total rate revenue, c. ratio of wholesale cost to retail full budgetary (cash) cost, d. incentives encouraging prospective reduction of water use, e. incentives encouraging prospective community investments in their water and sewer systems, f. incentives encouraging water protection, augmentation and/or reclamation of local water supply sources, g. incidence of relative cost changes on groups of communities having similar socio-economic characteristics.” Joint Appendix, Exh. 20, Attachment A.

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2 Mass. L. Rptr. 540, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-quincy-v-massachusetts-water-resources-authority-masssuperct-1994.