Pelliccio v. Axelrod

129 A.D.2d 76, 516 N.Y.S.2d 940, 1987 N.Y. App. Div. LEXIS 43663
Appellate Division of the Supreme Court of the State of New York·Decided June 15, 1987·Published·Cited by 2 cases

Opinion

OPINION OF THE COURT

Weinstein, J.

The instant appeal calls upon us to resolve a challenge to the rules and regulations governing solid refuse disposal in Westchester County. The respective plaintiffs who assert standing as taxpayers and private carters, directly attack the enabling legislation (Local Laws, 1986, No. 34 of County of Westchester)* as an unlawful delegation of authority in contravention of County Law § 266 and seek a judgment declaring invalid the financing mechanism devised thereunder.

For many years, the Croton Sanitary Landfill located at Croton Point in the Village of Croton-on-Hudson provided the only site within Westchester County for the disposal of solid waste by its municipalities. The useful life of the facility was limited and it was estimated that it would reach capacity by December 1985. Prior thereto, a complaint had been filed by the United States Attorney for the Southern District of New York alleging that the county was violating Federal law by permitting refuse and leachate containing deleterious substances, to enter the Hudson River. As a result of the Federal suit, the Croton Sanitary Landfill was ordered closed by 1985. That deadline was later extended to June 30, 1986, on which date the county actually closed the site.

In anticipation of this closure, the County Board of Legislators passed a resolution authorizing the construction of a solid waste disposal, resource recovery and electric generating facility (hereinafter the facility) at Charles Point in Peekskill (Resolution No. 28-1979). To insure that the facility’s financing and operation would be feasible, in 1979 the county entered [79] into intermunicipal agreements with 35 municipalities located within the county, whereby the county agreed to accept and dispose of a certain maximum tonnage of municipally collected solid waste at the facility and the municipalities agreed to deliver certain percentages of the refuse they collected. The agreements set a maximum tipping fee of $17 per ton through 1989. These agreements contemplated the establishment of a refuse disposal district and the collection of ad valorem taxes in order to subsidize the cost of operating the facility. In Resolution No. 227-1981, the Board of Legislators authorized the creation of the Westchester Refuse Disposal District No. 1 (hereinafter the district) and the imposition of ad valorem taxes.

Operation of the facility commenced in 1984. It was soon discovered that the facility had the capacity to process approximately 100,000 more tons of refuse per year than the municipalities were providing pursuant to the intermunicipal agreements. Thus, the county began negotiating with private carters to permit them access to the facility. By Local Laws, 1985, No. 31 of the County of Westchester, the Board of Legislators authorized the county to enter an agreement with the Intercounty Solid Waste Cooperative, Inc., a group of private carters, to permit them to utilize the facility to dispose of the solid waste they collected. Although the agreement was never formally approved by the county, the parties began performing under it as though it had been fully authorized.

In the interim, the New York State Attorney-General reviewed the proposed agreement, and indicated that there were problems with its anticompetitive nature. For almost a year, the Attorney-General endeavored to persuade the county to discontinue operating under the proposed agreements. These efforts proved fruitless. Consequently, the Attorney-General suggested, by letter dated June 9, 1986, that the county voluntarily abandon the agreement immediately and impose market value tipping fees on all private carters using the facility and the county transfer stations, and advised that failure to do so would result in the commencement of litigation against the county and the district.

In response, the Board of Legislators adopted Local Laws, 1986, No. 34 of the County of Westchester, which repealed Local Laws, 1985, No. 31 of the County of Westchester, and gave the administrative head of the district, the defendant Calvin Weber, the authority to develop a recommended rate and term of service for the disposal of solid waste which was [80] not collected by municipalities and to enter into short-term agreements with private carters until such time as the Board of Legislators approved a recommended rate and term of service. The tipping fee imposed under these short-term agreements was to be established by Weber at the market rate per ton. The agreements devised by Weber, which were to be effective from July 1, 1986 through August 31, 1986, set the interim tipping fee at $43.75 per ton.

Subsequently, two separate actions were commenced, inter alia, for judgments declaring Local Laws, 1986, No. 34 of the County of Westchester, and the agreements promulgated thereunder null and void. By order and judgment dated December 4, 1986, the Supreme Court, inter alia, determined both actions. The order and judgment denied the county defendants’ motions to dismiss, and, upon the plaintiffs’ cross motions for summary judgment, searched the record and awarded the county defendants partial summary judgment and declared that neither the defendant County of Westchester nor the district is required to collect or accept for disposal all refuse generated within the county or the district, and that the determination to impose and collect both ad valorem taxes and user fees to finance the operations of the district is lawful (134 Misc 2d 45). The plaintiffs now appeal and the county defendants cross-appeal from stated portions of that order and judgment.

The court did not err in rejecting the county defendants’ argument in their motions to dismiss that the plaintiffs lacked standing to maintain these actions. The plaintiffs in action No. 1, Pelliccio and Frank, are trustees of a carpenters’ apprentice fund which owns a building and rents land within the district and which hires a private carter to collect and dispose of its solid waste. Under a lease, the fund pays real estate taxes on the property it rents, which apparently include both an ad valorem tax and a user fee imposed to finance the operations of the district. Inasmuch as abuse of the procedural safeguards contained in County Law article 5-A may cause the fund injury by way of increased carting fees and the fund is within the zone of interest sought to be protected by those safeguards, the fund has standing to maintain this action (see, Matter of District Attorney of Suffolk County, 58 NY2d 436; Glen Head—Glenwood Landing Civic Council v Town of Oyster Bay, 88 AD2d 484). The plaintiffs in action No. 2, Industrial Refuse Systems, Inc., and Nello Carting Corp., are private carters whose business is directly affected by the rules [81] and regulations governing solid refuse disposal in Westchester County. Thus, they clearly have standing to assert the subject claims.

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Pelliccio v. Axelrod, 129 A.D.2d 76, 516 N.Y.S.2d 940, 1987 N.Y. App. Div. LEXIS 43663 (N.Y. Ct. App. 1987).

129 A.D.2d 76 (Pelliccio v. Axelrod) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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