Mullenix-St. Charles Properties, L.P. v. City of St. Charles
| Decision Date | 20 October 1998 |
| Docket Number | No. 73134,73134 |
| Citation | 983 S.W.2d 550 |
| Parties | MULLENIX - ST. CHARLES PROPERTIES, L.P., Village Of Bogey Hills Inc., and Ivan L. Mullenix, Plaintiffs/Appellants, v. CITY OF ST. CHARLES, Defendant/Respondent. |
| Court | Missouri Court of Appeals |
Daniel P. Card, II, Paule, Camazine & Blumenthal, P.C., St. Louis, for appellants.
Mary M. Bonacorsi, Matthew J. Fairless, Pamela J. Meanes, Thompson Coburn, St. Louis, for respondent.
Plaintiffs, owners of multi-unit apartment complexes located in the City of St. Charles, brought an action against defendant, the City of St. Charles (the City), seeking a declaratory judgment, injunction, and other relief on their claim that the City's water and sewer rates were improper and invalid. The issues before the trial court were 1) whether the City complied with all applicable provisions of the City Code and ordinances in properly adopting and applying rates, charges and billing policies for the combined waterworks and sewerage system; 2) whether the City's master meter billing policy violated plaintiffs' rights to equal protection of the law; and 3) whether the City violated plaintiffs' rights under the Hancock Amendment in failing to submit its September, 1993 and July, 1994 sewer and water rate increases for voter approval. Plaintiffs appeal from the trial court's judgment in the City's favor. We affirm.
Under the authority of state statutes, the City furnishes its residents with both water and sewer service. Its combined water and sewer system is operated and managed by its Board of Public Works which sets rates for water and sewer service subject to approval by the City Council, as set out in the City Code.
In 1961, the Board of Public Works adopted a "master meter" or "per unit" billing policy for multi-unit buildings served by one meter. The City requires a separate water meter for each building. Under the "master meter" billing policy, the City bases its user and volume charges for apartment and condominium buildings upon the number of units served by each meter. The volume charge is computed by dividing the total water usage of the building by the number of units served by the meter and applying the applicable rate to the volume per unit. Each unit is then charged its portion of the volume charge as well as the user fee. The user fee As a result of ongoing operating losses, the City periodically increased its water and sewer rates. This appeal involves rate increases proposed by the Board of Public Works and approved by the City Council in September, 1993 and July, 1994.
has been $2.00 per month since March, 1980, with one two-year exception.
As of July 1, 1994 City water bills contained four distinct charges: (1) a "gallonage charge" applied to water services; (2) a "gallonage charge" applied to sewer services; (3) a "minimum charge"; and (4) a "user charge." The July 1, 1994 charges illustrate the City's water and sewer rate structure:
July 1, 1994 Water and Sewer Rates
Water: First 10,000 gal. $1.40 / 1000 gal
Next 30,000 gal. $1.29 / 1000 gal
Next 60,000 gal. $1.14 / 1000 gal
All Over 100,000 gal. $1.07 / 1000 gal
Minimum Charge: $7.00 for two months
User Charge: $4.00 for two months
(Daily rate of $0.0667 = $4.00 / 60 days)
Sewer: All Usage $1.57 / 1000 gal
Minimum Charge: $7.00 for two months
User Charge: $4.00 for two months
(Daily rate of $0.0667 = $4.00 / 60 days)
The "gallonage charge" applied to water service is applied on a declining block rate schedule. When a customer has used all the water in the first rate block, that customer moves into the next rate block and is charged a lower rate for that water usage. The "gallonage charge" for sewer service is based on the metered water used by a customer and is charged at a flat rate. The "user charge" (also called a "service availability" or "base charge") is a charge paid by a customer regardless of whether the customer uses any water or sewer service. User charges are common components of water and sewer utility rates and are designed to cover the costs associated with customer billing, waterworks system availability, system maintenance, system repair, depreciation, and debt servicing. The "minimum charge" is the minimum bi-monthly charge a customer would pay for water and sewer service.
Plaintiff Mullenix - St. Charles Properties (Mullenix) is a limited partnership formed on February 14, 1994. Plaintiffs Ivan L. Mullenix and the Village of Bogey Hills, Inc., are the two general partners of Mullenix. Mullenix owns, operates and manages two residential apartment complexes in the City of St. Charles: the Time Centre Apartments and the Village of Bogey Hills Apartments. The Bogey Hills apartment complex was constructed on or prior to January 1, 1986. Plaintiff, Village of Bogey Hills Inc., owned the Bogey Hills apartments and transferred all its right, title and interest in Bogey Hills to Mullenix on February 17, 1994. The Time Centre apartment complex was constructed in two stages. Phase I was fully constructed and completed on or prior to January 1, 1987. Plaintiff Ivan L. Mullenix owned Phase I of Time Centre and transferred all his right, title and interest in Phase I on February 17, 1994. Phase II commenced in 1995 and was completed in 1996.
The two apartment complexes have a combined total of 40 buildings and 1058 apartment units. Each of the 40 buildings in these complexes are served by a single "master" water meter. There are no separate water meters measuring water consumed by individual apartment units at either complex. The two complexes are billed under the "master meter" billing policy. Mullenix passes the cost of water and sewer service to its tenants.
In 1994 plaintiffs paid the complexes' sewer and water bills under protest and then filed this action challenging the rates and the policy. They appeal from the trial court's judgment in the City's favor. On appeal they challenge the trial court's verbatim adoption of the City's proposed findings of fact and conclusions of law, the evidentiary support for one finding, the omission of facts from the findings, the admission of an exhibit, and compliance with the City Code. They also assert that the rates deny equal protection and violate the Hancock Amendment.
On review of a court-tried case, we sustain the judgment of the trial court unless there is no substantial evidence to support it, it is against the weight of the evidence, it erroneously declares the law, or it erroneously applies the law. Murphy v. Carron, 536 S.W.2d 30, 32 (Mo. banc 1976). As an appellate court we are admonished to exercise the power to set aside a judgment on the ground that it is against the weight of the evidence with caution and with a firm belief that the judgment is wrong. Id. See also Gilmartin Bros., Inc. v. Kern, 916 S.W.2d 324, 328 (Mo.App.1995); Jun v. Murphy, 763 S.W.2d 290, 295-96 (Mo.App.1988). We do not review de novo, Murphy v. Carron, 536 S.W.2d at 32, or reweigh the evidence, Serafin v. Med 90, Inc., 963 S.W.2d 362, 362 (Mo.App.1998). Rather, we accept the evidence and inferences favorable to the prevailing party and disregard all contrary evidence. Harris v. Lynch, 940 S.W.2d 42, 45 (Mo.App.1997). We defer to the factual findings of the trial judge, who is in a superior position to assess credibility. Id. However, we independently evaluate the trial court's conclusions of law. Lake Cable Inc. v. Trittler, 914 S.W.2d 431, 434 (Mo.App.1996).
For their first point plaintiffs assert that the trial court erred in adopting verbatim the City's proposed findings of fact, conclusions of law and judgment. Plaintiffs contend that, in so adopting the City's proposal, the trial court abdicated its judicial responsibility and violated plaintiffs' due process rights under the United States Constitution's Fourteenth Amendment and Article I, Section 10 of the Missouri Constitution. Plaintiffs further argue that the trial court's adoption of the City's proposed findings of fact and conclusions of law without modification renders unconstitutional any presumption of correctness normally afforded the trial court's findings of fact under Murphy v. Carron, 536 S.W.2d at 32. We disagree.
Both plaintiffs and defendants requested that the trial court enter written findings and conclusions. Thirty-four days after the three-day trial in this case, both sides submitted proposed findings of fact, conclusions of law and post-trial briefs. Fifteen days thereafter the trial court entered its findings of fact, conclusions of law and judgment. The trial court's findings and conclusions were identical to those proposed by defendants.
Plaintiffs' contention the trial court's action deprived them of due process was addressed and rejected by the Missouri Supreme Court in State v. White, 873 S.W.2d 590, 599-600 (Mo. banc 1994). In White, the court held:
Adopting all or part of a party's proposed findings, or adopting by reference the wording of a party's motion, has become a common practice among lawyers and judges in both criminal and civil cases. Courts frequently request both parties to draft findings of fact and conclusions of law that conform to how the court intends to resolve the issues in dispute. The court then takes the parties' recommendations under advisement and either drafts its own findings of fact and conclusions of law or adopts one of the parties' findings in whole or in part. As long as the court thoughtfully and carefully considers the parties' proposed findings and...
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