EVERETT — The city of Lake Stevens appealed on Monday a Snohomish County Superior Court ruling regarding its assumption of the Lake Stevens Sewer District.
In June, a judge ruled that the city cannot assume the sewer district eight years earlier than originally planned. On July 15, the Lake Stevens City Council voted unanimously to appeal the decision. The lawsuit will now head to state Court of Appeals.
“After much consideration, the decision to appeal was not made lightly,” a city press release read. “A successful appeal will allow the City to fulfill its obligations to plan for the long-term infrastructure and governance needs of our rapidly growing community. While the legal process continues, the City remains focused on the delivery of high-quality and efficient services for all residents.”
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.
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.
The city expects the appeal process to take six to nine months and cost about $50,000, Gailey said in an interview Wednesday.
But the sewer district expects the appeal to take more than a year and cost rate payers hundreds of thousands of additional dollars, the sewer district posted on its website Friday.
“This legal dispute has now spanned five years and cost both the city and the sewer district over $1 million in combined legal fees,” sewer district commission President Andrea Wright said in a statement to the City Council in June. “Judge Appel’s ruling brings closure to a long, costly and unproductive chapter for both sides. During this time, valuable staff resources that could have been dedicated to critical infrastructure and community-serving projects were instead diverted to litigation.”
In response to concerns about legal costs, Gailey emphasized that the sewer district began the lawsuit.
“They could stop the spending at any time they want by stopping the lawsuit,” he said. “This is their lawsuit. It’s not the city’s lawsuit. I think people are missing that part of it.”
After the judge’s ruling in June, sewer district General Manager Mariah Low said the district was committed to following the assumption process outlined in the 2005 agreement.
“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 at the time. “We have a contract, and contracts mean something.”
Assuming the sewer district would cut down on the “inefficient costs” that come from having separate operational expenses, Gailey said. It would also streamline the permitting process for residents, he said.
“The city needs to be able to control its destiny,” Gailey said, “and one of the places you control your destiny is in sewer.”
Jenna Peterson: 425-339-3486; jenna.peterson@heraldnet.com; X: @jennarpetersonn.
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