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FIRST AMENDED
 
COMPLAINT - 1G
ROEN
S
TEPHENS
& K
LINGE
LLP11100 NE 8th Street, Suite 750Bellevue, WA 98004(425) 453-6206
SUPERIOR COURT OF WASHINGTONFOR KITSAP COUNTYBAINBRIDGE RATEPAYERS ALLIANCE, anon-profit corporation,Plaintiff,vs.CITY OF BAINBRIDGE ISLAND, a municipalcorporation,Defendants,))))))))))))No. 09-2-01023-6
FIRST AMENDED COMPLAINT
Plaintiff alleges as follows:1. The City of Bainbridge Island offers water, sewer, and stormwatermanagement utilities, collectively referred to as the waterworks utilities (BIMC Sec. 3.44),through its Department of Public Works. The City water and sewer services are available toonly a small portion (approximately 25%) of the island. Despite the requirement that utilityfunds only be used for their intended purpose; that the individual funds and their capitalimprovements be segregated; and that fund monies not be commingled, the City has a recordof commingling all cash from all sources belonging to all its tax-supported and proprietary
 
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FIRST AMENDED
 
COMPLAINT - 2G
ROEN
S
TEPHENS
& K
LINGE
LLP11100 NE 8th Street, Suite 750Bellevue, WA 98004(425) 453-6206
funds. Recently, the City has sought financing through Bond Anticipation Notes and Revenueor Limited Tax General Obligation (LTGO) Bonds in an amount that is almost 50% greaterthan that required to finance completion of the Waste Water Treatment Plant (WWTP) capitalimprovement for which the financing is purportedly sought. This lawsuit seeks declaratoryand injunctive relief holding the financing proposal in excess of the amount necessary tocomplete the WWTP project as unauthorized, and thus an illegal, tax and enjoining the Cityfrom implementing these financing proposals or using any funds secured thereby for anyproject other than completion of the WWTP.
PARTIES, JURISDICTION AND VENUE
2. Plaintiff Bainbridge Ratepayers Alliance is a non-profit organizationincorporated under the laws of the State of Washington. The Alliance’s members includeBainbridge Island citizens who pay utility charges imposed by the City and who areconcerned about the City’s utility rates, taxes, and municipal finances.3. Defendant City of Bainbridge Island is a municipal corporation of the State of Washington located in Kitsap County. The City’s jurisdiction encompasses the entirety of theisland.4. The Court has jurisdiction over this matter under RCW 2.08.010 becausePlaintiff is challenging the legality of a tax and jurisdiction has not been vested exclusively bylaw in some other court.5. Venue is proper in this Court under RCW 4.12.025 because Defendant City of Bainbridge Island is a municipal corporation located in Kitsap County.
 
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FIRST AMENDED
 
COMPLAINT - 3G
ROEN
S
TEPHENS
& K
LINGE
LLP11100 NE 8th Street, Suite 750Bellevue, WA 98004(425) 453-6206
FACTS
6. The Bainbridge Island Public Works Department manages sewage collectionand treatment in the Winslow area of the City.7. The Winslow sewer service area encompasses only a small portion of theCity’s jurisdiction.8. The City has proposed completion of the improvements to the Winslow servicearea Wastewater Treatment Plant.9. The City has proposed to finance improvement completion by issuing LTGOor revenue bonds that substantially exceed the cost of financing such completion of theWWTP. The estimated cost of completion ranges from $4.2 million to $4.6 million, whilefinancing is being sought for $6 million.10. These LTGO or revenue bonds will be paid for by increased utility fees leviedon Winslow sewer service area utility customers.11. The City has made this proposal without having first released a utility ratestudy that shows the projected impact on the ratepayer of the proposed financing; withoutevidence that current and future ratepayers can afford proposed rate increases; withoutproviding currently available information on the financial impact of other capitalimprovements that might be required for the affected utility to be in compliance withapplicable local, state, and federal laws; without disclosing why the proposed financing isexcessive; and without receiving advisory recommendations from the Utility AdvisoryCommittee as required by Bainbridge Island Municipal Code chapter 2.33.12. Plaintiff contends that the City has violated and is in violation of the laws asspecified below. The City denies it has violated or is violating these laws. Therefore, there
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