Holmes Harbor Sewer District v. Holmes Harbor Home Building, L.L.C.

155 Wash. 2d 858
CourtWashington Supreme Court
DecidedNovember 23, 2005
DocketNo. 76062-4
StatusPublished
Cited by7 cases

This text of 155 Wash. 2d 858 (Holmes Harbor Sewer District v. Holmes Harbor Home Building, L.L.C.) 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
Holmes Harbor Sewer District v. Holmes Harbor Home Building, L.L.C., 155 Wash. 2d 858 (Wash. 2005).

Opinion

¶[1 C. Johnson, J.

This case requires us to determine whether, under chapter 57.08 RCW, a local sewer district may impose monthly charges against unimproved lots that are not connected to the system. We conclude on the facts of this case that under RCW 57.08.081(1), the unimproved lots are not properties to which sewer service is available. Accordingly, we hold that the charges at issue are not statutorily authorized and reverse the Court of Appeals.

[860]*860FACTS

¶2 The Holmes Harbor Golf and Yacht Club subdivision, platted in the 1960s on Whidbey Island, contains approximately 500 lots and a golf course. By the late 1970s, individuals had improved only 30 of the lots because the local soils would not support on-site septic systems. Clerk’s Papers (CP) at 123-24. The Holmes Harbor Sewer District (District) was formed to provide sewer service to the subdivision.

¶3 In 1990, the District formed a utility local improvement district (ULID) to finance the sewer system through bonds and special assessments levied against property within the ULID. The District hired an appraiser to determine the specific benefit each parcel would receive from sewer service, and pursuant to the appraiser’s findings, the District charged a special assessment to the property owners. The District constructed sewer lines throughout the subdivision in the right of way adjacent to each lot, with a stub to each property line. The sewer system requires each property to have an on-site septic tank that pumps the wastewater from the individual tanks to the treatment plant for processing.

¶4 In June 1995, following completion of the sewer system, the District adopted Resolution 264. CP at 409-19. This resolution governs the use of the system by regulating property connections and locations of on-site sewer facilities. Under this resolution, the District may compel property owners to connect to the sewer when a dwelling or other structure used by humans is situated on any lot within the District and the District gives notice that the property must connect to the system. Property owners are required, at their own expense and in accordance with the District’s resolutions, to install on-site facilities on their property before connecting to the sewer system. Before the District approves the connection to the system, property owners must submit a wastewater system hookup application and pay charges and fees, including an application fee, a sewer service connection fee, a system connection charge, delinquent ULID installments, if any, and engineering [861]*861review and inspection fees. Under this resolution, no guaranteed right to connect to the sewer system is created.1

¶5 In September 1995, the District adopted Resolution 266, which imposed initial monthly fees of $25 for connected properties and $15 for unconnected properties. CP at 459-61. Subsequent resolutions have raised the rates but have retained the $10 differential. In August 2002, the monthly rates were $58.33 for connected properties and $48.33 for unconnected properties. CP at 523. In 2002, fewer than half of the properties in the subdivision were connected to the sewer system.

¶6 Petitioner Holmes Harbor Home Building, L.L.C., (Home Building) owns approximately 80 unimproved lots and 9 tracts that are subject to the charge. These properties generate no sewage and are not connected to the sewer. Home Building refused to pay the monthly charge imposed on each lot. The District instituted an action to enforce the lien against properties owned by Home Building. Both parties moved for summary judgment, seeking a declaratory judgment on the validity of the charges. The trial court deemed the facts to be essentially undisputed. The court held the charges were authorized by RCW 57.08.081(1) but found they were property taxes under Samis Land Co. v. City of Soap Lake, 143 Wn.2d 798, 23 P.3d 477 (2001), and thus unconstitutional because they lacked proportionality. The Court of Appeals affirmed the statutory issue but reversed the trial court and concluded the charges were permissible regulatory fees. We granted review to determine the validity of the monthly charges.

ANALYSIS

¶7 The parties contend the validity of the charges turns on whether they are permissible regulatory fees or unconstitutional taxes. However, we initially address [862]*862whether the statute authorizing water-sewer districts to charge rates for sewer service and facilities, RCW 57-.08.081(1), allows the District to assess charges on the properties at issue. In construing the application of this statute to the facts of this case, we also examine subsections of RCW 57.08.005 setting forth the general powers of the districts and subsections of RCW 57.08.081 detailing the charges. We adhere to the principle that when we can resolve a case on statutory grounds, we need not, necessarily, reach the constitutional issue. See Isla Verde Int’l Holdings, Inc. v. City of Camas, 146 Wn.2d 740, 752, 49 P.3d 867 (2002).

Statutory Authority for Availability Charges

¶8 RCW 57.08.081(1) states, in relevant part,

[T]he commissioners of any district shall provide for revenues by fixing rates and charges for furnishing sewer and drainage service and facilities to those to whom service is available. . . .

(Emphasis added.) To determine whether the District may charge the properties, we look to the text of the statute establishing the District’s authority. To impose rates and charges, the language of the statute requires districts to furnish some level of sewer and drainage service and facilities. The next question is when that service furnished by the districts is available.

¶9 In 1959, the legislature amended this statute’s predecessor by changing the phrase “to those receiving such service” to read “to those to whom such service is available.”2 Laws of 1959, ch. 103, § 11. The Court of Appeals analyzed this amendment when a property owner challenged the validity of sewer service charges on vacant dwellings physically connected to sewer collection and [863]*863treatment facilities. Lake Stevens Sewer Dist. v. Vill. Homes, Inc., 18 Wn. App. 165, 566 P.2d 1256 (1977). The property owner argued the dwellings were not furnished with sewer service until they were occupied and actual use began. The court properly rejected this argument, recognizing the amendment to the statute makes the availability of the sewer, not actual use, the basis for imposing charges.

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

Related

In Re The Welfare Of T.P.
Court of Appeals of Washington, 2020
Boles v. Town of Oak Island
830 S.E.2d 878 (Court of Appeals of North Carolina, 2019)
Tukwila School Dist. No. 406 v. City of Tukwila
167 P.3d 1167 (Court of Appeals of Washington, 2007)
Tukwila School District No. 406 v. City of Tukwila
140 Wash. App. 735 (Court of Appeals of Washington, 2007)
Holmes Harbor Sewer Dist. v. HOLMES HARBOR HOME BLDG. LLC
123 P.3d 823 (Washington Supreme Court, 2005)

Cite This Page — Counsel Stack

Bluebook (online)
155 Wash. 2d 858, Counsel Stack Legal Research, https://law.counselstack.com/opinion/holmes-harbor-sewer-district-v-holmes-harbor-home-building-llc-wash-2005.