Claim Ransdell, MaryIN THE IOWA DISTRICT COURT IN AND FOR DUBUQUE COUNTY
MARY RANSDELL, )
)
Plaintiff, )
)
'VS. )
)
CITY OF DUBUQUE, )
)
Defendant. )
01311 No.
ORIGINAL NOTICE
TO THE ABOVE NAMED DEFENDANT: CITY OF DUBUQUE
youarenotifiedthatapefitionhasbeenfiledonthe ~ 7 dayof ~J'~?n ~,~yt~,
2003, in the Office of the Clerk of this Court, naming you as the Defendant in this action. A c6py
of the petition (and any documents filed with it) is attached to this notice. The attorney for the
Plaintiff is Jermifer A. Clcmens-Conlon, Reynolds & Kenline, L.L.P., whose address is 222 Fischer
Building, P.O. Box 239, Dubuque, IA 52004-0239. That attorney's phone number 563-556-8000;
facsimile number 563-556-8009.
You must serve a motion or answer within 20 days after service of this Original
Notice upon you, and, within a reasonable time thereafter, file your motion or answer, with the Clerk
of Court for Dubuque County, at the County Courthouse in Dubuque, Iowa. If you do not, judgment
by default may be rendered against you for the relief demanded in the Petition.
If you require the assistance of auxiliary aids or services to participate in court
because of a disability, immediately call your ADA coordinator at (563) 589-4448. (If you are
headngimpaired, call Relay Iowa TTY at 1-800-735-2942:)'7,,~z~~
CLERK OF COURT
Dubuque County Courthouse
Dubuque, IA 52001
(SEAL)
IMPORTANT: YOU ARE ADVISED TO SEEK LEGAL ADVICE AT ONCE TO PROTECT
YOUR INTERESTS.
S:\WPXJOAN~Ransdell-JACkPetition for Declaratory Judgment.wpd
IN THE IOWA DISTRICT COURT IN AND FOR DUBUQUE COUNTY
MARY RANSDELL, )
)
Plaintiff, )
vs. ) 01311 No.
Defendant. )
PETITION FOR DECLARATORY JUDGMENT
· COMES NOW Plaintiff and hereby petitions the Court for a declaratory judgment a~nd~, in
support thereof, state to the Court as follows:
Plaintiff Mary Ransdell is a resident of Dubuque, Dubuque County, Iowa, residing at 583
West 7th Street, Dubuque, Iowa 52001, and has been at all times relevant hereto.
2. The City of Dubuque is a municipality located in Dubuque County, Iowa.
The real estate located at 583 West 7th Street, Dubuque, Iowa, has been reassessed numerous
times during the previous years. In January, 1989, a large garage was added to the property.
In December, 1989, an additional wood deck and shed were added. In October, 1990, an
open porch and other major renovations were added to the property and in February, 1992,
the house was reroofed. All of these modifications and changes were recorded with the
Dubuque City Assessor's Office. The property was reassessed in 1989, 1990, 1991, 1993,
1995, 1997, and 2001, with each year an increase in value of the property being reported.
The assessed value applicable at the time of the September, October and November, 2001
time period was $63,730, according to the official records of the Dubuque City Assessor's
Office.
The subject property has a fully functioning and self-contained sewer system that does not
require or necessitate City hookup.
5. Dubuque City Ordinance 44-14 provides as follows:
"The owner of any house, building, or property used for human occupancy,
employment, recreation or other purposes, situated within the City and abutting on
any street, alley, right of way or easement in which there is now located, or may in
the future be located, within two hundred feet (200') of the nearest property line
thereo f, a public sanitary sewer of the City, is hereby required at the owner's expense
P~elof5P~es
7.
to connect such facilities directly with the proper public sewer, in accordance with
City standards as adopted by the City Manager and the provisions of Chapter 37 of
this Code requiting the making of connections with sanitary sewers and providing
for the manner of making such connections."
A policy was adopted by the Dubuque City Council for the Dubuque City Engineering
Deparm~ent on November 4, 1996, to assist in the interpretation, application and enforcement
of City Ordinance 44-14, which policy was designed to prevent hardship caused by requiring
sewer hookups.
"The City of Dubuque, as part of this policy, will limit the cost to the property owner
of connecting a lateral to the City's sanitary sewer. After the property owner or City
secures a minimum of two bids for the complete installation of a lateral, the City will
limit the property o~vner's cost for the lateral connection to 15% of the current
assessed taxable value of the property as shown on the records of Dubuque
County. [emphasis added]
When deficiencies exceed the 15%, the City will reduce the connection charge, if
any. After that, the City will contribute up to an additional 10% of the assessed
current valuation of the house to defray any cost beyond the 15% plus the connection
charge. After the 15% property owner's cost of the installation, and any connection
charge is waived and 10% of City participation is exhausted, the City will, on a case
by case basis, determine whether the connection to the public sewer is justified.
In such cases, the City Manager ~vill determine whether to require the property owner
to replace the septic system in lieu of connection to the City sanitary sewer."
[emphasis added]
The November 4, 1996 policy limited the cost to the homeowner of 15% of the current
assessed taxable value of the property as shown on the records of Dubuque County and
further provided that if the cost exceeded 25%, the City could protect itself against an
unnecessary expense and being required to contribute more than 10% of the then assessed
value by determining that the cost of connecting the sewer was "not justified" and that the
then existing septic system could continue to be used and maintained.
On September 11, 2000, the Health Services Department contacted Mary Ransdelt at 583
West 7th Street, Dubuque, Iowa 52001, and advised her that, as the property is within 200
feet of an existing sanitary sewer, she was required to connect to the sewer within 365 days,
in accordance with Section 44-55 of the City Code of Ordinances. Further, Ms. Ransdell was
notified in writing that within five days, she would receive contact from Housing Services
Department Rehabilitation Activity regarding a program designed to assist her with the sewer
connection project. Further, enclosed in that correspondence was information explaining the
Sewer Connection Financial Assistance Program through the City Engineering Department,
Page 2 of 5 Pages
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which pro~'am specifically "does not require any tow/moderate income eligibility
guidelines."
The enclosure outlining the Sewer Connection Financial Assistance Program, as established
by the November 4, 1996 policy, provided:
"A homeowner's costs to connect to the City sanitary sewer is limited to 15% of the
assessed value of the home as determined by the City Assessor."
No call was received by Mary Ransdall from the Housing Services Department
Rehabilitation Activity within five days of the September 11, 2000 correspondence.
Mary Ransdell left a phone message for Gus Psihoyos, the Assistant City Enginem', on
February 7, 2001. No response was received.
On September 29, 2001, City employee Tim Link met with Mary Ransdell and verbally
informed her that an extension to the deadline indicated in the September 11, 2000
correspondence was to be granted.
On October 1, 2001, written correspondence was forwarded to Mary Ransdell by the Health
Services Department, granting her an extension of 30 days.
Mary Ransdell then, within 30 days, at City direction, obtained three bids for the sewer
extension and submitted them to Gus Psihoyos, Assistant City Engineer.
Mary Ransdell attempted to contact Gus Psihoyos on two different occasions in attempts to
finalize arrangements for a sewer hookup and received no return calls.
Within the 3 O-day extension period, Gus Psihoyos determined, and verbally reported to Mary
Ransdell, that because o£the distance of the home from the City line and as a result of the
estimated rock which must be cut through in order to complete a hookup, the connection
cost at low bid was $27,000 and, therefore, the City determined the connection was "not
justified."
Mary Ransdell contacted Gus Psihoyos, Assistant City Engineer, by written correspondence
dated November 13, 2001, confirming her willingness to proceed with the project in
accordance with the November 4, 1996 policy and calculating her contribution as follows:
the then assessed City value for the property, $63,790, multiplied by 15% = a homeowner's
contribution of $9,559. (Please note a slight over-calculation due to a scrivener's error in the
assessed property value.)
During consideration of the connection fee for the subject property, the City Engineering
Department and the City Health Department claim they came to the opinion that the property
Page 3 of 5 Pages
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was under-assessed by the City of Dubuque Assessor's Office and that the November, 1996
policy for implementing Dubuque City Ordinance 44-14 needed to be revised to address a
situation wherein a property was allegedly significantly under-assessed.
Gus Psihoyos, Assistant City Engineer, submitted a Memorandum to Michael C. Van
Milligan, City Manager, on December 11, 2001, proposing changes to the policy for
interpretation, application and enforcement of City Ordinance 44-14.
On December 13, 2001, Gus Psihoyos sent written correspondence to Mary Ransdell,
indicating that the Engineering Department "is in the process of reviewing the policy. It is
our intent to submit a revised policy for City Council consideration at its December 17, 2001
meeting. A copy of the proposed revised policy is attached .... The low estimate you
submitted for your sewer work was $27,000 which exceeds the policy guidelines. Therefore,
you are not eligible under the current policy for assistance.
We would, however, like to meet with you within the next sixty (60) days to review your
situation under the new policy and to initiate the bidding process."
A new policy for enforcement of Section 44-14 was issued by the City Engineering
Department. A Memorandum was issued to the Mayor and City Comacil members, dated
December 13,2001, recommending changes to the policy which, in part, provide as follows:
"Some properties are under-assessed and thus, for purposes of the 15% limit, it is
recommended that the policy be revised to allow the Engineering Division to hire an
appraiser to determine the value of the property."
The City has requested Mary Ransdell's consent to have the property appraised by a City-
employed appraiser, despite the fact that within the last six months, an agent of the City
Assessor's Office conducted an inspection of the property for reassessment purposes.
Since December, 1995, 104 properties within 200 feet of the City's existing sanitary sewer
system have connected to the public system in accordance with the November 4, 1996
policy. Approximately 70 additional properties were to be given notice to connect during
the next four to five years. It does not appear that any properties, other than the Mary
Ransdell property, were notified to connect under the November 4, 1996 policy and then
declined participation in the program until adoption of the revised policy in December, 2001.
The Dubuque City Engineer's Office determined that using the then existing policy
(November, 1996) to calculate the cost ofcormecfing the Ransdell home to City sewer was
too expensive for the City of Dubuque and, as such, proposed selective legislation designed
for the purposes of decreasing the financial obligation of the City and increasing the financial
obligation of Mary Ransdell.
Page 4 of 5 Pages
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The rewriting of the policy and applying it to a homeowner who had previously been
assessed for the necessity of connecting to City sewer based on the old policy is arbitrary,
capricious and unfair. The policy, as amended, should apply proactively only and should not
be applied retroactively to those parties who had previously been assessed.
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A determination that connecting a property to the City sewer is "not justified" because of the
financial hardship that it caused the City under the original policy is determinative of the
issue as to whether it is "not justified' as a financial hardship on the homeowner to hook up
to the City sewer..
WHEREFORE, Mary Ransdell seeks a declaratory judgment of the Court in addressing the
following four issues:
Whether or not Mary Ransdell established a vested right to have the sewer connection
assessment administered in accordance with the November 4, 1996 policy for interpretation,
application and enforcement of Dubuque City Ordinance 44-14.
Whether or not it is arbitrary, capricious and unfair to assess a property for sewer hookup
under the November 4, 1996 policy for interpretation, application and enforcement of
Dubuque City Ordinance 44-14, determine that the findings are unfavorable to the City and
proceed with rewriting the policy in a way which will shift the financial burden fi:om the City
to Mary Ransdell.
Whether or not the cost of connecting the subject property to the City sewer is justified when
incurred by the homeowner when it was deemed by the City to not be justified when the cost
was to be incurred by the City.
Whether or not the City is entitled to appraise the subject property again for sewer
assessment purposes despite the official records of the Dubuque City Assessor's Office
showing current and updated asses~ property.
~,~/e~oh~- #00001 ~06
REYNgLDy & KENL1NE, L.L.P.
222 F~che/~uilding
P.O ox -
Dul~uque, IA 52004-0239
Tel: (563) 556-8000
Fax: (563) 556-8009
S:\WP~JOANkRansdell-JAC~Pefition for Declaratory Judgment.wpd
Page 5 of 5 Pages