State Ex Rel. City of Fostoria v. King

94 N.E.2d 697, 154 Ohio St. 213, 154 Ohio St. (N.S.) 213, 43 Ohio Op. 1, 1950 Ohio LEXIS 412
CourtOhio Supreme Court
DecidedOctober 25, 1950
Docket32385 and 32387
StatusPublished
Cited by38 cases

This text of 94 N.E.2d 697 (State Ex Rel. City of Fostoria v. King) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Ex Rel. City of Fostoria v. King, 94 N.E.2d 697, 154 Ohio St. 213, 154 Ohio St. (N.S.) 213, 43 Ohio Op. 1, 1950 Ohio LEXIS 412 (Ohio 1950).

Opinion

Tart, J.

Case No. 32387 is an action in mandamus originating in this court and was heard on a demurrer to the petition.

So far as material to consideration of the question presented, the petition alleges that the city of Fostoria, a noncharter city, had “constructed and tor many years # * * operated and is now operating as a public utility sewers and appurtenant facilities for the collection and disposal of sanitary sewage in said city, the service of which was and is furnished by said city generally to all properties therein without discrimination, within the limits of the capacity of the system”; that, on June 20, 1950, the city council passed ordinance 2132 which established rates to be charged for the use of its sewage system; and that, on the same day, the council passed ordinance 2133 which provided for the issuance of mortgage revenue bonds in the amount of $750,000.

It appears, from the provisions of ordinance 2133, a copy of which is attached to the petition and made a part thereof, that the proceeds of the bond issue, provided for by that ordinance, are to be used to finance the enlargement of the sewage collection and disposal system “by construction of a new intercepting sewer and installation and reconstruction of pumps, tanks, *215 piping and other structures for enlarging the capacity of the sewage disposal plant.”

The petition alleges further that, • within 30 days after the passage of the foregoing ordinances, a petition, demanding a referendum on ordinance 2132 and signed by more than 10% of the electors of the municipality, was filed with the auditor of the municipality, and a similar petition was likewise filed demanding a referendum on ordinance 2133; and that the city council has refused to submit either of the two ordinances to a referendum.

The question for determination in this case is whether either of these two ordinances is subject to referendum by reason of the provisions of Section 5 of Article XVIII of the Constitution, which reads:

“Any municipality proceeding to acquire, construct, own, lease or operate a public utility, or to contract with any person or company therefor, shall act by ordinance and no such ordinance shall take effect until after thirty days from its passage. If within said thirty days a petition signed by ten per centum of (he electors of the municipality shall be filed with the executive authority thereof demanding a referendum on such ordinance it shall not take effect until submitted to the electors and approved by a majority of those voting thereon. The submission of any such question shall be governed by all the provisions of section 8 of this article as to the submission of the question of choosing a charter commission.” (Emphasis added.)

It may be inferred from the allegations of the petition that the city has heretofore been furnishing the services of its sewers and appurtenant facilities without charge. Ordinance 2132, which is attached to the petition and made a part thereof, provides for the establishment and collection of charges upon all premises served by or having connections with that municipal *216 sewage system and for the use of monies collected in that way for the payment of the cost and expense of the operation, maintenance, repair and management, of the system and for the payment of debt charges on bonds issued for extensions and improvements of the system. It is apparently the contention of relator that, in so doing, the municipality is, within the words of the constitutional provision, “proceeding to 43 * 35 operate a public utility. ’ ’ In our opinion, such a contention is inconsistent with the decision of this court in Shryock, a Taxpayer, v. City of Zanesville, 92 Ohio St., 375, 110 N. E., 937.

As pointed out by Nichols, C. J., on page 378 in the court’s opinion in that case:

“If every repair, addition or improvement to any utility is to be regarded in the same light as the construction of an entire system, the constitutional provision would be impracticable and cumbersome. Evidently no such result was contemplated, and such a construction is not required. Had it been the purpose of the Constitution framers to require every repair and improvement to come within the terms of Sections 4 and 5 of Article XVIII, it is reasonable to believe that they would have said so.

“It is quite evident that these provisions of the Constitution were to have no reference to utilities municipally owned and already in operation * * V

Likewise, if, by every step taken in the operation of a public utility, a municipality was regarded as ‘ ‘ proceeding to * * * operate a public utility,” within the meaning of those constitutional provisions, such provisions would be impracticable and cumbersome.

Relator’s contention might be sound if Section 5 of Article XVIII of the Constitution read, “Any municipality acquiring, constructing, owning, leasing or operating * * * or contracting * * The words “pro *217 ceeding to” were apparently intended to be given a narrow meaning so as to indicate that tbe section was to apply only when a municipality was beginning “to acquire, construct, own, lease or operate * * * or to contract * * The decisions of this court certainly lead inevitably to that conclusion. Shryock, a Taxpayer, v. City of Zanesville, supra; State, ex rel. Didelius, City Solicitor, v. Commission of City of Sandusky, 131 Ohio St., 356, 2 N. E. (2d), 862; State, ex rel. Nicholl, a Taxpayer, v. Miller, Village Clerk, 127 Ohio St., 103, 187 N. E., 75; State, ex rel. Schell, v. Abbott, 132 Ohio St, 160, 5 N. E. (2d), 408: City of Middletown v. City Commission of Middletown, 138 Ohio St.., 596, 605, 37 N. E. (2d), 609.

Relator contends further that such a substantial improvement. of the sewage disposal system as involved in the instant case amounts, in fact, to ‘ ‘ acquiring ’ ’ a public utility. In support of this contention, relator refers to some of the language of Chief Justice Nichols on page 379 in the opinion in the Shryock case, where he pointed out that there was in that case no attempt, “under the guise of repairing or improving a public utility, * * * to substantially reconstruct a utility” or “no suggestion or intimation of altering or rebuilding the plant already existent.”

In State, ex rel., v. Miller, supra, it was held that an ordinance, providing “for an addition to an existing public utility and not for the acquisition or construction of a public utility, ” was not subject to referendum under Section 5 of Article XVIII of the Constitution.

In State, ex rel. Schell, v. Abbott, 54 Ohio App., 510, 23 Ohio Law Abs., 510, 8 N. E. (2d), 254, it was held that an ordinance, providing for “the alteration, repairing, improvement, enlarging and extending” of a municipal utility, was not subject to referendum under the provisions of Section 5 of Article XVIII of the

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Bluebook (online)
94 N.E.2d 697, 154 Ohio St. 213, 154 Ohio St. (N.S.) 213, 43 Ohio Op. 1, 1950 Ohio LEXIS 412, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-city-of-fostoria-v-king-ohio-1950.