EVERETT — The city of Lake Stevens cannot assume the Lake Stevens Sewer District eight years earlier than originally planned, a Snohomish County Superior Court judge ruled Tuesday.
The yearslong legal battle stems from a 2005 agreement between the two parties that stated the city would assume the district no sooner than 2033.
But in 2020, the Lake Stevens City Council passed an ordinance to assume the district early, citing a state law that gives the city the power to do so if 60% of the district falls within city limits. At the time, Lake Stevens Mayor Brett Gailey said the move could save taxpayers money and enhance economic development.
In 2021, the sewer district sued the city, accusing it of breaching the 2005 agreement. The assumption has been on hold since.
A 2020 study by a city-hired consulting firm estimated Lake Stevens could pay between $450,000 and $1 million in legal fees.
“It’s unfortunate for the taxpayers of Lake Stevens that it took 5 years and all that money to have a judge say the same thing we’ve been saying all along,” sewer district commissioner Kevin Kosche said in a press release Wednesday. “We have a contract, and contracts mean something.”
The 2020 study also found Lake Stevens could save up to $595,000 over three years by taking over the district, eliminating “duplicate expenses” such as engineering and administrative costs.
Last year, district general manager Mariah Low told The Daily Herald the assumption would only save ratepayers about $1 per month.
Gailey said assuming the district could have streamlined difficulties that come from having two separate organizations, such as permitting issues.
“It was a great opportunity as a city to have less government in the city and to have the efficiency of combined organizations, we missed that by that ruling,” Gailey said.
In the district’s press release, Low said the district is committed to following the process outlined in the 2005 agreement.
“We’re ready to move forward with our City partners and continue focusing on our mission of protecting the environment and providing quality service to our community,” sewer district commission President Andrea Wright said in the release.
Jenna Peterson: 425-339-3486; jenna.peterson@heraldnet.com; X: @jennarpetersonn.
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