Jarvis v. Janney

876 F. Supp. 2d 1204, 2012 U.S. Dist. LEXIS 89239, 2012 WL 2466569
CourtDistrict Court, E.D. Washington
DecidedJune 27, 2012
DocketNo. 11-CV-0321-TOR
StatusPublished

This text of 876 F. Supp. 2d 1204 (Jarvis v. Janney) is published on Counsel Stack Legal Research, covering District Court, E.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jarvis v. Janney, 876 F. Supp. 2d 1204, 2012 U.S. Dist. LEXIS 89239, 2012 WL 2466569 (E.D. Wash. 2012).

Opinion

ORDER GRANTING PARTIAL SUMMARY JUDGMENT

THOMAS 0. RICE, District Judge.

BEFORE THE COURT are Plaintiffs’ Motion for Summary Judgment (ECF No. 61), Defendant John Janney’s Motion for Summary Judgment (ECF No. 82), and Defendant Chelan County Public Utility Dist. No. l’s Motion for Summary Judgment (ECF No. 91). These motions were heard with oral argument on June 20, 2012. Steven C. Lacy appeared on behalf of the Plaintiffs. Portia R. Moore and Jeffrey B. Youmans appeared on behalf of the Defendants. The Court has reviewed the motions, the responses, the replies, and the record herein and is fully informed.

BACKGROUND

This is a wrongful termination lawsuit filed by two former employees of Chelan County Public Utility District No. 1. Plaintiffs have sued Defendants for violating their rights to substantive and procedural due process under 42 U.S.C. § 1983, and for the tort of breach of a promise of specific treatment in a specific circumstance under Washington common law. [1208]*1208The parties have filed cross-motions for summary judgment on Plaintiffs’ § 1983 claims, and Defendant PUD has moved for summary judgment on Plaintiffs’ state law claims. Plaintiffs concede that their substantive due process claims should be dismissed, but maintain that summary judgment is appropriate as to their procedural due process claims. Plaintiffs also oppose summary judgment on their state law claims.

FACTS

Chelan County Public Utility District No. 1 (“the PUD”) provides utility services to residents of Chelan County, Washington. Beginning in approximately the year 2000, the PUD began an ambitious campaign to build a county-wide fiber-optic data network for use by its business , and residential customers. From the beginning, the PUD planned to , extend this network to as many areas of Chelan County as possible — including its more rural areas.

Recognizing that the project would require an extensive amount of planning, the PUD assigned several of its employees to a so-called “fiber group” tasked with designing the network and budgeting for its construction. This group was led by Plaintiffs Joe Jarvis (“Jarvis”) and John Smith (“Smith”). In their capacities as Executive Manager of Operations, and Managing Director of Engineering and Technology, respectively, Jarvis and Smith were the two highest-level managers directly assigned to the build-out project. Jarvis and Smith both reported to Defendant John Janney (“Janney”), the PUD’s General Manager and highest appointed official.

By 2009, the PUD had invested more than $100 million in the fiber project. Despite this sizeable investment, however, the network had only been extended to about 75% of the private residences in Chelan County. The PUD estimated that extending the network to the remaining 25% of residences — many of which were located in rural areas — would cost an additional $60 million. Knowing that it could not afford this additional cost without raising utility rates, the PUD sought input from its customers about whether the network should be extended to the remaining 25% of the county. Those surveyed overwhelmingly rejected a rate increase to finance the $60 million build-out. ECF No. 85 at 344.

In September of 2009, the PUD learned of a federal grant program created by the American Recovery and Reinvestment Act of 2009 known as the Rural Utilities Service Broadband Initiatives Program (“RUS”). In early 2010, the PUD decided to pursue an RUS grant as an alternative means of financing the build-out to the county’s more rural areas; The PUD assigned Jarvis and Smith to oversee the application process.

On March 27, 2010, the PUD submitted a formal application for an RUS grant. In its application, the PUD explained,

With access now extended to approximately three-fourths of Chelan County, CCPUD hopes to complete the system to reach at least 98 percent of county residents.
* * *
With RUS funding, CCPUD would extend its [fiber-optic] infrastructure to serve the remaining 6,811 rural premises that are still without access to broadband.
An additional ... $33 million ($3665) per premises will allow CCPUD to provide high-speed access to remaining rural [1209]*1209end-users to cover approximately 98 percent of the county.

ECF No. 85 at 321-23.

On August 4, 2010, the PUD was informed that it would be awarded an RUS grant — provided that it agreed to contribute $8 million of its own funds toward the $33 million overall cost. Shortly thereafter, the PUD surveyed its customers once again to determine whether they were willing to fund the $8 million contribution through rate increases. In this survey, the PUD asked,

The Chelan County PUD has installed broadband fiber optic internet service in approximately 85% of the. county, at a cost of about $100 million dollars. That means about 15% of county residents still do not have access to broadband fiber optic internet service.
The PUD applied for, and has been offered, a $25 million dollar grant from the federal government under the stimulus bill. If the grant money is accepted, the PUD would need to provide about $8 million of its own money to complete the build-out over the next three years in mostly rural areas of Chelan County. If the PUD accepts this grant, electric rates may need to increase up to 3% for the average residential customer, in order to complete the broadband system build-out county-wide. Now, knowing that to cover costs of completing the build-out, residential rates may increase up to 3% — or about $1.50 extra per-month for the average customer based on current estimates — do you think the remaining 15% should be completed or should not be completed?

ECF No. 85 at 358. Sixty-one percent of respondents answered that they were in favor of increasing rates to fund the PUD’s share of the build-out cost. ECF No. 85 at 358.

On August 24, 2010, the PUD hosted a public meeting to discuss whether the RUS grant should be accepted. At this meeting, the PUD gave a presentation outlining the terms of the grant and discussing the advantages and disadvantages to accepting the funding. This presentation informed the public, inter alia, that (1) the “[t]otal amount to complete build-out is $33 [million];” (2) that the PUD would be responsible for contributing $8 million to the project; (3) approximately 6,800 premises would be reached by the build-out; and (3) approximately 64% of customers surveyed were in favor of increasing rates to fund the PUD’s $8 million contribution. ECF No. 85 at 367-68, 375. At the conclusion of the meeting, the PUD invited members of the public to comment on whether the grant funds should be accepted- The PUD’s Board of Commissioners voted to accept the RUS grant and to increase utility rates 2-3% the following day.

On January 18, 2011, the PUD held a meeting of the “Fiber Strategic Planning Subcommittee” to discuss the status of the fiber build-out. At this meeting, Jarvis and Smith presented the following information concerning the network-access status of the private residences in Chelan County (in substantially the following format):

Networks Premises Status as of 1/H./2011

Pending _Premises_Orders

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Bluebook (online)
876 F. Supp. 2d 1204, 2012 U.S. Dist. LEXIS 89239, 2012 WL 2466569, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jarvis-v-janney-waed-2012.