Drainage Dist. No. 119, Clay County v. Incorporated City of Spencer, 119

• Citation: 268 N.W.2d 493
• Decision Date: 28 June 1978
• Docket Number: No. 60839,A,No. 119,119,60839
• Parties: DRAINAGE DISTRICT NO. 119, CLAY COUNTY, Iowa, and the Board of Supervisors of Clay County, acting on behalf of said Drainage Districtppellant, v. The INCORPORATED CITY OF SPENCER, Iowa, and the Iowa Department of Transportation, Appellees.
• Court: United States State Supreme Court of Iowa

Page 493

268 N.W.2d 493

DRAINAGE DISTRICT NO. 119, CLAY COUNTY, Iowa, and the Board of Supervisors of Clay County, acting on behalf of said Drainage District No. 119, Appellant, v. The INCORPORATED CITY OF SPENCER, Iowa, and the Iowa Department of Transportation, Appellees.

No. 60839.

Supreme Court of Iowa.

June 28, 1978.

Greer, Hoover, Nelson, Montgomery & Barry, Spencer, for appellant.

Mack, Hansen & Gadd, Storm Lake, for appellee City of Spencer.

Asher E. Schroeder, Sp. Asst. Atty. Gen., Ames, for appellee Iowa Dept. of Transp.

Considered by MOORE, C. J., and MASON, ^* RAWLINGS, UHLENHOPP and REYNOLDSON, JJ.

MASON, Justice (Serving by special assignment).

Plaintiff, Drainage District No. 119 of Clay County and the Board of Supervisors of Clay County acting on behalf of said Drainage District No. 119, appeals from the trial court's ruling sustaining defendants' motion for summary judgment on the ground plaintiff was not entitled to any relief as a matter of law.

Plaintiff instituted an action seeking declaratory relief against the City of Spencer (City) and the Iowa Department of Transportation (DOT). Plaintiff had alleged that defendants had each refused to pay the assessments incurred for the construction of a culvert crossing at Fourth Avenue West in the vicinity of 30th Street North and a culvert crossing at North Grand Avenue, also known as U.S. Highways 18 and 71, all within the city limits of Spencer and for the area assessments incurred at these crossings.

Plaintiff asked the court to determine the obligations and duties of the City and DOT to pay for the construction of the culvert crossings and area assessments.

After plaintiff's petition, defendants' answers, and plaintiff's amendment to its petition and reply to defendants' answers had been filed, the parties entered into a stipulation of facts which plaintiff attached to its motion for summary judgment. Prior to entry of a ruling on this motion the parties amended the stipulation. After the motion was dismissed by Judge Andreasen, defendants filed motion for summary judgment. Judge Underwood sustained the motion and dismissed plaintiff's petition. Plaintiff's appeal is from Judge Underwood's sustention of the motion and dismissal of its petition.

The underlying facts here are included in the stipulation entered into by the parties. This stipulation was as follows:

"COME NOW all of the parties in the above entitled case and hereby do stipulate and agree that the following is a true and accurate set of facts which has occurred in the above entitled case to be submitted to the Court in lieu of taking testimony in the same:

"On November 9, 1970 the Board of Supervisors of Clay County, Iowa accepted a Petition for the establishment of Drainage District No. 119 and appointed an engineer to make a preliminary survey and report (Exhibit 1). The engineer filed his report on March 21, 1972 recommending establishment of said District (Exhibit 2). April 27, 1972 at 2:30 o'clock P.M. was set as a time for an informal hearing and discussion on the proposed establishment of Drainage District No. 119 (Exhibit 3). At the informal hearing the Board of Supervisors set July 10, 1972 and 10:00 o'clock A.M. as the time for formal hearing on establishment of Drainage District No. 119. All appropriate parties were duly notified of said hearing for the establishment of the District. The Iowa State Highway Commission filed an objection to assessments against primary Highway No. 71 of the Drainage District (Exhibit 4). The City of Spencer did not file an objection. On November 6, 1973 the Iowa State Highway Commission withdrew its objection to the establishment of the Drainage District stating that the construction was within the City of Spencer and therefore the Highway Commission would not be involved and therefore, did not object (Exhibit 5).

"The July 10, 1972 hearing was held and continued after a lengthy discussion. At this meeting there were two officials of the City of Spencer present, Harold M. Sunday, Director of Public Works, and C. E. Page, Mayor (Exhibit 6). After several additional continuations of the hearing the Drainage District No. 119 of Clay County was duly organized and formally established on February 8, 1974 (Exhibit 7).

"The Drainage District consists of approximately 1,060 acres and the southern portion of said District which is the area where the assessments are in question is within the City limits of Spencer. Drainage facilities which were installed in said District in the area within the city limits of Spencer include a bridge or large culvert under Highway No. 71 at which point Highway No. 71 and 18 are within the corporate limits of the City of Spencer and crossing of Fourth Avenue and 30th Street. The City of Spencer annexed this area in 1967. The area where the tile drain crosses under Highways No. 71 and 18 is approximately one mile south of the north corporate limits of the City of Spencer.

"On September 19, 1974 the City of Spencer accepted service of a notice to construct culverts and right-of-way improvements under Highway No. 71 and 18 and Fourth Avenue West on North 30th Street (Exhibit 8). The Iowa State Highway Commission was also served notice of the improvements and acceptance of service was on September 20, 1974 (Exhibit 9).

"On September 24, 1974 the Iowa State Highway Commission sent a letter to Mr. Sackett, Drainage District Attorney, enclosing the acceptance of service but reaffirming its position that it was not involved (Exhibit 10).

"On October 15, 1974 the Clay County Auditor sent both the City of Spencer and the Iowa Highway Commission a notice that bids were to be received on the construction and improvement of Drainage District No. 119 on October 29, 1974 (Exhibits 11 & 12). Said bids were let on October 29, 1974 pursuant to the notice sent to both parties.

"On October 28, 1974 the Iowa State Highway Commission sent a letter to the Auditor reaffirming its position that it was not participating in the same as the area in question was not under its jurisdiction (Exhibit 13).

"On January 30, 1975 hearing on report of the classification commission for Drainage District No. 119 was held. At that time there were two objections, one of which was from the Highway Commission (Exhibit 14). Said objection claimed the State had no jurisdiction of the property as opposed to an objection to the assessment schedule in terms of units assessed to the land in question. The Mayor of the City of Spencer was present at the hearing. He raised no objections to the assessment schedule, nor were any objections filed on behalf of the City of Spencer in regard to units assessed to the City. Said hearing was continued to consider the objection of Mr. and Mrs. Walter Kabrick which was considered to have merit.

"On February 18, 1975 the Drainage District hearing was resumed at which time all objections to the classification schedule were overruled and the classification was accepted (Exhibit 15). After acceptance of same it was ordered by the Trustees that there be a levy of assessment fixed upon the land within the District in accordance with the classification schedule of 1.5845 cents per unit.

"Notice to the State of Iowa was sent on April 7, 1975 for $377.23 for an area assessment (Exhibit 16). Notice to the City of Spencer was sent on April 7, 1975 for $323.34 for an area assessment (Exhibit 17). This assessment was paid on April 9, 1975. Notice of assessment for the Fourth Avenue and Highway No. 71 and 18 crossings was sent to the City of Spencer for the amount of $26,857.00 (Exhibit 18).

"The City of Spencer has not filed any objections during the entire proceedings of Drainage District No. 119, nor has it filed any appeals to any of the determinations of the Commissioners for Drainage District No. 119.

"The Iowa State Highway Commission has continually filed objections, but has not filed any appeal to the Commissioners' overruling said objections.

"Both parties have refused to pay said assessments, the Iowa Highway Commission claiming that they have no jurisdiction over said property and therefore have no authority to make payment for the same. The City of Spencer claiming that Highway No. 71 and 18 is under the jurisdiction of the State and said payment should be made by the Iowa Highway Commission.

"The cost of construction of said street crossing and the area assessments for the said Drainage District were as follows:

                Fourth Avenue West Culvert
                Crossing                     -  $ 4,521.00
                Area assessment for Fourth
                Avenue West                  -      324.34 (paid)
                North Grand Avenue and/or
                Highway 71 & 18 Culvert
                Crossing                     -   22,360.00
                Area assessment for North
                Grand Avenue and/or Highway
                71 & 18                      -      377.23
                

The total cost of construction of said culverts and area assessments all located in Drainage District No. 119 is $27,582.53.

"Right-of-way occupied by primary highway extensions 71 and 18 in the City of Spencer was acquired by easement by the State of Iowa. Neither the State nor the City of Spencer claim ownership of the underlying fee.

"It is acknowledged that the assessment is specifically under Section 455.118 for costs of construction and the assessment for area benefits are not at issue in this case."

The amendment to the stipulation added the following:

"1. The Defendant Iowa Department of Transportation, formerly the Iowa State Highway Commission, had no objection to the establishment of Drainage District No. 119 nor to the construction of the drainage facility across and through 4th Avenue West and North Grand Avenue and/or Highways 71 and 18. (See Exhibit 5). The only request the Commission had was that the construction be done so as to maintain the traffic flow upon the primary extension and the drainage district did work within the district engineer from Sioux City in this regard. (See Exhibit 10).

"2. The parties hereby stipulate that all...