Water District No. 1 v. Robb

318 P.2d 387, 182 Kan. 2, 1957 Kan. LEXIS 458
Supreme Court of Kansas·Decided November 21, 1957·No. 40,997·Published·Cited by 25 cases

Opinion

The opinion of the court was delivered by

Schroeder, J.:

Appellee, Water District No. 1 of Johnson County, Kansas, filed an application for a writ of mandamus in the district court of Shawnee County, Kansas, to require the appellant, State Auditor, to register $20,000,000 principal amount of water revenue bonds of Water District No. 1 of Johnson County, Kansas, and interest coupons attached thereto.

The appellee Water District was organized, created and established under and in compliance with the provisions of Laws of 1951, Ch. 240, as amended by Laws of 1953, Ch. 159 (G. S. 1955 Supp., 19-3501 to 19-3521, incl.), said statute having been further amended by Laws of 1957, Ch. 192.

A five-member governing body for appellee Water District was duly elected on December 15, 1953. Thereafter, appellee’s water district board appointed a survey commission to make an investigation of and report on all public improvements necessary to secure and insure an adequate water supply and distribution system. The survey commission made such report to the water district board on or about February 17, 1956, whereupon the water district board prepared a plan which it deemed the most practical and economical for an adequate water distribution system and supply of water for the appellee District. This plan, approved by the appellee’s board on or about August 6,1956, provided for the acquisition by purchase, condemnation or otherwise of the water supply and distribution system situated in the District owned by Kansas City Suburban Water Company, Inc., and improving, extending and enlarging said system, all at an estimate aggregate cost of $20,000,000. The plan further provided for the issuance of water revenue bonds of the appellee District not in excess of said amount to pay such cost.

The above plan was submitted to the voters in tire District on November 17, 1956, for their approval. The exact proposition submitted to the voters at said election was as follows:

“Water District No. 1 of Johnson County, shall be authorized to obtain by construction, purchase, condemnation or otherwise, a water supply and dis *5 tribution system at an estimated aggregate cost to the Water District of Twenty Million Dollars ($20,000,000), and to issue revenue bonds not in excess of such amount in payment of the same.
Yes ._
No __”

Notice of the foregoing election was duly given as required by said statutes, the election was duly held on Nevember 17, 1956, and the proposition submitted was approved by a majority of the qualified electors of the appellee District voting on the proposition, the vote being 8,813 ballots for said proposition to 1,750 ballots against said proposition.

Pursuant to Laws of 1957, Ch. 192, § 1, the board of county commissioners of Johnson County, Kansas, on or about April 22, 1957, adopted a resolution fixing May 17, 1957, at 10:00 o’clock a. m., at the public hearing room in the Courthouse in Olathe, Kansas, as the time and place for a public hearing as to whether or not the appellee Water District is of public utility. Notice of such hearing was duly given as required by said statute and such hearing was duly held on May 17, 1957, at the hour and place specified in said notice. After hearing all persons desiring to be heard, the county commissioners adopted a resolution finding and determining that the creation and establishment of the District will be of public utility, and ratified and confirmed the creation and establishment of the appellee District.

Thereafter, appellee’s board negotiated and entered into an agreement with Kansas City Suburban Water Company, Inc., dated July 17, 1957, to purchase, subject to the approval of the voters of the appellee District, the water supply and distribution system of the Company situated in the District, the base purchase price of such system being $14,531,279.46 as of December 31, 1956, plus additional adjustments to be determined as of the close of business on the date of closing. After notice was duly given, a special election was held in the District on September 7, 1957, to ratify the purchase of the water supply and distribution system owned by Kansas City Suburban Water Company, Inc., in accordance with said negotiated agreement and at an estimated aggregate cost to the Water District of $15,250,000. The exact proposition submitted to the voters at said election was as follows:

“Water District No. 1 of Johnson County, shall be authorized to acquire by purchase, in accordance with the terms of the negotiated agreement published in connection with the notice of this election, the water supply and distribution *6 system of Kansas City Suburban Water Company, Inc., at an estimated aggregate cost to the water district of Fifteen Million Two Hundred Fifty Thousand Dollars ($15,250,000).
Yes _
No _”

The proposition submitted was duly approved by a majority of the qualified electors of the appellee District voting on the proposition, the vote having been 4,998 ballots for said proposition to 88 ballots against said proposition.

Thereupon appellee’s board adopted a resolution authorizing the issuance of $20,000,000 principal amount of Water Revenue Bonds, Series of 1957, as approved in the election held on Nevember 17, 1956. A resolution setting forth all of the terms and provisions of said revenue bonds, together with the provisions relating to the collection, segregation and application of the revenues of the water supply and distribution system of the District, is fully set forth in the record, the details of which are immaterial to relate herein.

The appellee thereupon prepared a complete transcript of the proceedings leading up to the issuance of said Water Revenue Bonds, Series of 1957, of the appellee Water District, and said transcript, properly certified, was presented to the appellant State Auditor together with the original executed bond No. 1 of said issue. The ■ appellee District requested the appellant as State Auditor to register said bonds and the interest coupons attached .thereto. The appellant, however, upon advice of the Attorney 'General, has refused to register said bonds on the ground that Laws of 1951, Ch. 240, as amended by Laws of 1953, Ch. 159, being G. S. 1955 Supp., 19-3501 to 19-3521, inch, and further amended by Laws ■of 1957, Ch. 192, were unconstitutional, illegal and invalid and that the water revenue bonds of the appellee District were likewise .invalid. This action was filed to compel the registration of such bonds.

The appellee Water District is located in the northeast corner of the state in an area- of Johnson County, adjoining Kansas City, Missouri, on the east and Kansas City, Kansas, and its immediate .suburbs on the north. The area of the Water District is urban in ■character being thickly populated throughout with large residential ■developments and substantial retail business districts included therein. The District has a population between 85,000 and 90,000, ..and includes substantially ¿11 of Mission Township and about half *7

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Water District No. 1 v. Robb, 318 P.2d 387, 182 Kan. 2, 1957 Kan. LEXIS 458 (kan 1957).

318 P.2d 387 (Water District No. 1 v. Robb) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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