Ventenbergs v. City of Seattle

178 P.3d 960
Washington Supreme Court·Decided February 21, 2008·No. 76954-1·Published·Cited by 8 cases

Opinion

178 P.3d 960 (2008)

Josef VENTENBERGS, Kendall Trucking, Inc., a Washington Corporation, Ronald Haider, and Haider Construction, Inc., a Washington Corporation, Petitioners,
v.
The CITY OF SEATTLE, a Municipal Corporation, Seattle Public Utilities, and Chuck Clarke, in his official capacity as Director of Seattle Public Utilities, Waste Management of Washington, Inc., d/b/a Waste Management of Seattle, a Delaware Corporation, and Rabanco, Ltd., a Washington Corporation, Respondents.

No. 76954-1.

Supreme Court of Washington, En Banc.

Argued March 22, 2007.
Decided February 21, 2008.

*962 William R. Maurer, Michael E. Bindas, Institute for Justice/WA State Chapter, Seattle, WA, for Petitioners.

Gregory Colin Narver, City Hall, William Howard Patton, Foster Pepper PLLC, Suzanne Lieberman Smith, Seattle City Attorneys Office, Jessica L. Goldman, Polly L. McNeill, Summit Law Group PLLC, Andrew Michael Kenefick, Waste Management Inc./Legal Dept., David Welles Wiley, Attorney at Law, Dana Andrew Ferestien, Williams Kastner & Gibbs, Seattle, WA, for Respondents.

James K. Sells, Ryan Sells Uptegraft Inc. PS, Silverdale, WA, Amicus Curiae on behalf of Washington Refuse and Recycle Corporation.

Timothy M. Harris, Olympia, WA, Amicus Curiae on behalf of Building Industry Association of Washington.

BRIDGE, J.P.T.[*]

¶ 1 Since 1961, the Washington Utilities and Transportation Commission (WUTC) has regulated solid waste collection. However, pursuant to statute, the WUTC's jurisdiction over a solid waste collection company ends when that company contracts directly with a city. In the early 1990s the City of Seattle (City) decided to contract with solid waste handlers directly, thus ending WUTC's jurisdiction over the companies with which the City contracted. When the City decided to enter into direct contracts, only Rabanco and Waste Management were legally operating (i.e., they were in compliance with existing WUTC regulations) within the City. However, smaller companies, including Kendall Trucking (owned by petitioner Josef Ventenbergs and utilized by petitioner Ronald Haider), were providing collection services for construction, demolition, and land clearing waste (CDL), a specific type of solid waste. The City chose to contract with Rabanco and Waste Management to provide collection of "City's Waste" and CDL within Seattle. When the City learned that other collection companies were operating illegally, it enacted an ordinance establishing that CDL falls within the definition of "City's Waste," and thus could be collected only by Rabanco or Waste Management. We must now decide whether the City's code provisions restricting CDL collection to Rabanco and Waste Management impermissibly infringe upon the rights of Ventenbergs and Haider. We find that they do not and affirm the Court of Appeals.

I

Facts and Procedural History

¶ 2 Since 1961, the WUTC has regulated solid waste collection.[1] A company wishing to haul solid waste for profit must either obtain a certificate of necessity and convenience from the WUTC or enter into a contract with a municipality to provide waste collection services for that municipality. RCW 81.77.040 states, in relevant part, that

[n]o solid waste collection company shall hereafter operate for the hauling of solid waste for compensation without first having obtained from the commission a certificate declaring that public convenience and necessity require such operation.

RCW 81.77.020 exempts from this requirement any company operating under a contract with a city or town. It states:

No person, his lessees, receivers, or trustees, shall engage in the business of operating as a solid waste collection company in this state, except in accordance with the *963 provisions of this chapter: PROVIDED, That the provisions of this chapter shall not apply to the operations of any solid waste collection company under a contract of solid waste disposal with any city or town, nor to any city or town which itself undertakes the disposal of solid waste.

RCW 81.77.040 grandfathered in all currently operating solid waste collection companies, granting them certificates without requiring compliance with the provisions of the chapter. When the WUTC scheme was enacted in 1961, 10 solid waste collection companies were operating in the City. Over the course of the next 40 years, due to a series of acquisitions and consolidations, Rabanco and Waste Management gained the exclusive rights to collect commercial waste within Seattle. Only these two companies possessed the requisite certificates of public convenience and necessity from the WUTC. However, due perhaps to a lack of enforcement of the WUTC regulations, numerous other small waste-collection businesses operated within the City at this time.

¶ 3 Upon the closure of its two landfills in the 1980s (and their declaration as superfund sites), the City decided to confront its solid waste problem by emphasizing recycling and environmental responsibility. To that end, in 1989 the City entered into residential solid waste collection contracts that provided for separate recycling collection and separate yard waste collection. To address the problem of the remaining solid waste, the City sought to enter a long-haul contract with a company that would transport waste to arid eastern Washington or Oregon. Seattle required that the landfills to which the waste would be taken comply with the more strict requirements of landfills in "wet weather" areas, thus providing greater environmental protection. In 1991, the City entered into such a contract with Waste Management, which took all of Seattle's solid waste to a landfill in Gillam County, Oregon.

¶ 4 Then in 1992, the City began considering entering into contracts for commercial solid waste collection for the purposes of (1) reducing rates to commercial generators of solid waste and (2) promoting recycling in the commercial sector. When the United States Supreme Court issued its decision in C & A Carbone, Inc. v. Town of Clarkstown, 511 U.S. 383, 114 S.Ct. 1677, 128 L.Ed.2d 399 (1994), a third objective arose: ensuring that the City could continue to dispose of its waste at the environmentally sound Gillam County landfill. In Carbone, the Court held that where a city did not have a municipal system of garbage collection but instead relied on private companies operating under individual contracts with customers, the city could not insist upon the collection companies taking the waste to its own transfer stations. See Carbone, 511 U.S. at 386, 114 S.Ct. 1677 (finding that by requiring solid waste to be processed at a designated transfer station before leaving the city, the city violated the commerce clause); see also id. at 394, 114 S.Ct. 1677 ("State and local governments may not use their regulatory power to favor local enterprise by prohibiting patronage of out-of-state competitors or their facilities."). Thus, the City was concerned that if Waste Management decided to take the waste to a different disposal site, the City would have no recourse.

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Ventenbergs v. City of Seattle, 178 P.3d 960 (Wash. 2008).

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