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Sunday, July 11, 2004

Sewer lawsuit rested solidly on public-finance safeguards

New River Forum

In March a group of concerned Blacksburg residents decided to sue the town to prevent construction of a gravity sewer in the Toms Creek Basin. Town staff had already selected three construction companies to build Phase 1 of this sewer and were planning to award these construction contracts on April 13. Our suit contended that the procedures used to authorize construction of the sewer either ignored or violated the laws of Virginia and of Blacksburg.

On April 9, we asked Judge Robert Turk for a temporary injunction to prevent the town from awarding contracts for construction of the sewer. The judge postponed his decision until April 13. On April 12, before the judge could issue an injunction, the town voluntarily agreed not to execute a bond agreement or award any construction contracts until the case was heard on May 13.

After the town council election on May 4, when two supporters of the Toms Creek Basin gravity sewer were defeated, the town decided to postpone all sewer decisions until after the newly elected council took office. The town also proposed to ask the judge to dismiss the case since the relief requested by the plaintiffs would be granted at the next council meeting. We agreed, and Turk subsequently declared the case to be moot.

We would like to present some of the legal points that made our case so strong, and which probably influenced the town's decisions. The Public Finance Act allows a town to issue bonds passed by a simple majority, which is 4 votes to 3 votes in Blacksburg. It does not amend or repeal any part of a town charter, town code or Virginia law. It applies only to the issuance of bonds. Both Virginia code and the Blacksburg town charter and code require a two-thirds vote when levying taxes. Blacksburg's code also requires a vote of five council members for adoption of a budget and for any "ordinance or resolution appropriating money exceeding $500."

Our lawsuit challenged the town's amendment of the current budget by a vote of 4 to 3. The council needed to amend the 2003-2004 budget in order to include the cost of Phase 1 of the sewer, which was to be paid for by proceeds of the bond. The town planned on signing sewer construction contracts by mid-April.

As noted above, passing the budget requires five votes, according to the town charter. Further, under Virginia Code 15.2-1427(D), "Any ordinance may be amended or repealed in the same manner, or by the same procedure, in which, or by which, ordinances are adopted." It is clear that since it took five votes to pass the budget, it would take five votes to amend it.

The lawsuit also challenged the passage of the resolution authorizing the condemnation of property for the purpose of acquiring easements for the sewer line. The cost of the easements would have been in the neighborhood of $100,000, far more than the $500 limit that needed only a simple majority. That resolution required a five-vote majority.

Of interest is the lawsuit's allegation that no vote was ever taken to authorize the sewer. When seeking to condemn property under eminent domain, it is necessary to provide a copy of the resolution or ordinance authorizing the project for which condemnation is required. The town could cite only the amendments to the comprehensive plan as the authority for the sewer. The comprehensive plan is not law. It is not a resolution or an ordinance. It seems unlikely that all the senior officials, who should be knowledgable about these procedures, would have been unaware of the necessity to pass such a resolution. It seems more likely that this matter was never brought up for a vote since, needing a five-vote majority, it would not have passed.

There is little doubt that the four town council members who favored a gravity sewer through the Toms Creek Basin were trying to get sewer construction started prior to July 1. The main benefit of the lawsuit was that it stopped the town from awarding $7.6 million in construction contracts and prevented the start of sewer construction. Our suit made it clear that Virginia state law both protects and supports town charters and codes, which should be followed when decisions concerning the sewer, or in fact, any decisions are made.

We now have a new council that has respect for both our laws and resident input. Isn't democracy wonderful?

Rogol is a retired business owner. Cooper has a doctorate in biology. Both are Blacksburg residents and were the plaintiffs in a lawsuit that challenged Blacksburg Town Council's procedures concerning the Toms Creek Basin sewer project.

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