City of Northwood, Ohio v. Wood County Regional Water and Sewer District, 98-LW-0355
| Decision Date | 30 January 1998 |
| Docket Number | 98-LW-0355,WD-97-010 |
| Parties | City of Northwood, Ohio, Appellant\Cross-Appellee v. Wood County Regional water and Sewer District, Appellee\Cross-Appellant Court of Appeals |
| Court | Ohio Court of Appeals |
John F Birath and Brain J. Ballenger, for Appellant/cross-appellee.
Orla E. Collier, Rex A. Littrell and Daniel Spitler, for appellee/cross-appellant.
This is an appeal from judgments of the Wood County Court of Common Pleas in three cases consolidated for appeal involving water and sewer facilities located within the boundaries of appellant/cross-appellee, city of Northwood,[1] ("Northwood"), and owned by appellee/cross-appellant, Wood County Regional Water and Sewer District, ("district"). For the reasons discussed herein, this court affirms, in part, and reverses, in part, the judgments of the Wood County Court of Common Pleas.
The following facts are relevant to this appeal. On April 8, 1965, pursuant to R.C. 6117.03, Northwood requested that the easterly one-half of Northwood become part of the Wood County Sewer District. The Wood County Commissioners ("commissioners") issued a resolution to include the easterly one-half of Northwood in the Wood County Sewer District on June 29, 1965. On November 18, 1965, pursuant to R.C. 6117.03, Northwood requested that the westerly one-half of Northwood become part of the Wood County Sewer District. The commissioners issued a resolution to include the westerly one-half of Northwood in the Wood County Sewer District on December 6, 1965. On February 24, 1966, by resolution, Northwood requested the commissioners to include it in the Wood County Sewer District for purposes of providing water service to it. The resolution stated:
"NOW, THEREFORE, be it resolved that the Village of Northwood does hereby petition and request the Wood County Board of Commissioners to include all of the Village of Northwood within the Wood County Main Sewer District for purposes of planning and eventual establishment of water service to and for said Village of Northwood, to the extent the same may be served by water supplied by the City of Toledo or, as hereafter negotiated, from the City of Oregon."
In 1967 and 1968, Wood County ("county") constructed main water and sewer transmission lines through Northwood. In addition to requesting inclusion within the system, Northwood specifically approved the plans for construction of these main transmission lines and trunk sewer lines. On February 25, 1971, by resolution, Northwood requested the county to proceed with construction of sewer lines in Northwood. On November 25, 1980, the commissioners approved plans for construction of a major sewer trunk component, the Tracy Road interceptor, sewer line no. 100, to serve Northwood and extending through it.
The district has thirty-six sewer lines and twenty-seven water lines within the geographic boundaries of Northwood. The district listed the total original cost and estimated the total reproduction cost of the water lines as follows:
ORIGINAL COST: $2,827,396; REPRODUCTION COST: $8,539,933.
The district listed the total original cost and estimated the total reproduction cost of the sewer lines as follows:
On December 9, 1991, pursuant to R.C. Chapter 6119, the commissioners, the city of Rossford, the villages of Custar, Cignet, Jerry City, Pemberville, Millbury and Walbridge and the townships of Perrysburg, Lake, Plain, Troy, Milton, Liberty, Portage, Bloom, Freedom, Center, Henry, Washington and Middleton petitioned the Wood County Court of Common Pleas for the organization of a regional water and sewer district. The
facilities to be included in the district included water and sewer facilities located within Northwood. The city of Rossford and the village of Cygnet filed objections to the plan of operation and were ultimately excluded from the district. Northwood filed no objection to the plan of operation. The water and sewer agreements with Toledo by which the county had served Northwood were specifically discussed. Also discussed in regard to the sewer agreement with Toledo was the Tracy Road sewer line, which Northwood by resolution on February 25, 1971, had requested the county to construct in Northwood.
On May 18, 1992, the Wood County Court of Common Pleas established the district. On September 28, 1993, the Wood County Court of Common Pleas approved the plan of operation. The plan of operation detailed that the county convey all water and sewer facilities owned by the county to the district and that the district assume the liability (including debt) on such facilities. The conveyance was made pursuant to an agreement dated December 28, 1993. A quit claim deed dated December 28, 1993 conveyed all real property associated with the water and sewer facilities from the county to the district, including a section in Northwood. On May 11, 1993, the district adopted a "Policy Governing the Extension and Control of Water Services and Sewer Connections" ("policy"). The policy provides the rules and regulations for the provision of water and sewer service and was approved by the Wood County Court of Common Pleas as part of the plan of operations.
On August 1, 1995, the district filed a complaint for declaratory judgment and injunctive relief against Northwood (case No. 95-CV-306). In this complaint, the district alleged that Northwood and Alcoa Automotive Structures, Inc. ("Alcoa") had authorized construction of water and sewer lines ("lines") to serve land Alcoa had purchased within Northwood without plan approval by the district as well as plan approval by the Ohio Environmental Protection Agency and the county engineer; the district also alleged that Northwood and Alcoa intended to connect these lines to the district lines without a developer agreement as required by the district's policy. The district alleged that Northwood's and Alcoa's actions were in violation of the policy which required a customer to discharge only liquid waste of normal "quality" which did not exceed established limits and that the district would suffer harm if Northwood and Alcoa were allowed to tap into the district's lines without an agreement for payment for usage. The district sought a declaration that: 1) the installation and construction of lines within the area served by the district without plan approval were contrary to law; 2) the district was the exclusive supplier of water and sewage treatment to Alcoa's land based upon the district's contracts with the city of Toledo; and 3) Northwood and Alcoa were subject to and must comply with the district's policy before connecting to the district's lines. The district sought to enjoin construction and connection of any lines without plan approval and compliance with the district's policy. On August 1, 1995, the trial court issued a temporary restraining
order enjoining Northwood and Alcoa from proceeding with the construction and installation of lines without on site inspection by the district and approval by the necessary authorities; and enjoining Northwood and Alcoa from tapping into the district's lines without compliance with the district's policy. On August 15, 1995, the trial court, in its judgment entry, noted that the parties reached a settlement agreement which resulted in dissolving the temporary restraining order issued on August 1, 1995, and allowing Northwood to tap into the district's lines.
On September 11, 1995, Northwood filed an answer and counterclaim in case No. 95-CV-306. In its counterclaim, Northwood alleged that the district wrongfully asserted control over Northwood's sovereign right to develop and provide water and sewer services within its city limits and, thus, had interfered with Northwood's municipal and private operations and had harmed the economic development of Northwood.
On October 20, 1995, the district filed a complaint for declaratory judgment and injunctive relief against Northwood (case No. 95-CV-436). In this complaint, the district alleged that, after Northwood had made an offer to purchase the district's facilities within the boundaries of Northwood, Northwood passed an ordinance declaring its intention to acquire through eminent domain the district's facilities within the boundaries of Northwood. The district sought a declaration that Northwood's actions in authorizing the appropriation of the district's facilities violated the Ohio Constitution. The district sought to enjoin Northwood from commencing an eminent domain action to appropriate the district's facilities.
On December 28, 1995, Northwood filed a complaint for appropriation of property against the district (case No. 95-CV-516). Northwood cited Article XVIII, Section 4 of the Ohio Constitution for its authority to appropriate, as well as R.C. 163.01 through 163.22 and R.C. 715.01 and 719.01.
These three cases were not consolidated at the trial court level. On September 20, 1996, in each of the three cases, the trial court issued an order directing that the parties file motions for summary judgment. The parties filed cross-motions for summary judgment in case No. 95-CV-516 and in case No 95-CV-306. In case No. 95-CV-436, the district filed a motion for summary judgment and Northwood filed a motion for partial summary judgment regarding ownership of...
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