THE SCHOOL BOARD OF MIAMI-DADE COUNTY, FLORIDA v. THE CITY OF MIAMI BEACH, FLORIDA ( 2021 )


Menu:
  •        Third District Court of Appeal
    State of Florida
    Opinion filed February 24, 2021.
    Not final until disposition of timely filed motion for rehearing.
    ________________
    No. 3D20-1128
    Lower Tribunal No. 17-672
    ________________
    The School Board of Miami-Dade County, Florida,
    Appellant,
    vs.
    The City of Miami Beach, Florida,
    Appellee.
    An Appeal from a non-final order from the Circuit Court for Miami-Dade
    County, David C. Miller, Judge.
    Walter J. Harvey, School Board Attorney; Brett Little P.A., and Susan
    M. Seigle (Gainesville), for appellant.
    Johnson, Anselmo, Murdoch, Burke, Piper & Hochman, P.A., and
    Michael T. Burke (Fort Lauderdale), for appellee.
    Before LOGUE, LOBREE, and BOKOR, JJ.
    LOGUE, J.
    In the underlying case, the City of Miami Beach sued the School Board
    of Miami-Dade County to demand the School Board pay municipal
    stormwater utility fees. The School Board moved to dismiss on the basis that
    sovereign immunity barred the City’s claim. The trial court denied the motion
    to dismiss and the School Board now appeals that nonfinal order. We
    conclude that this case is governed by our prior precedent of City of Key
    West v. Florida Keys Community College, 
    81 So. 3d 494
     (Fla. 3d DCA 2012),
    in which we held that a community college is protected by sovereign
    immunity from paying municipal stormwater utility fees because Chapters
    180 and 403, the current expressions of the Legislature’s authorizations for
    municipalities to levy such fees, did not waive sovereign immunity.
    Accordingly, we reverse.
    FACTS AND PROCEDURAL HISTORY
    Like other municipalities in Florida, the City of Miami Beach is
    empowered to create a stormwater utility program and to collect stormwater
    utility fees. As the Supreme Court explained:
    Stormwater runoff may cause flooding and threatens water
    quality in urban areas. Therefore, stormwater must be collected,
    conveyed, treated, and disposed of. Florida law requires local
    governments to establish stormwater management programs. To
    fund such programs, local governments may “[c]reate one or
    more stormwater utilities and adopt stormwater utility fees
    sufficient to plan, construct, operate, and maintain stormwater
    2
    management systems set out in the local program required
    pursuant to [section] 403.0891(3).”
    City of Gainesville v. State, 
    863 So. 2d 138
    , 141 (Fla. 2003) (internal citations
    omitted). Chapter 403 contains an express authorization in this regard that
    includes the power to fund
    a stormwater management program by assessing the cost of the
    program to the beneficiaries based on their relative contribution
    to its need. It is operated as a typical utility which bills services
    regularly, similar to water and wastewater services.
    § 403.031(17), Fla. Stat. (2020).
    In 1996, pursuant to sections 403.0891 and 403.0893, Florida
    Statutes, the City created its stormwater management system funded by
    stormwater utility fees assessed on owners of developed property within the
    City. The City’s stormwater management system collects stormwater runoff
    drained from developed properties. The stormwater is then transported
    through a network of pipes and eventually discarded into Biscayne Bay.
    The School Board owns ten developed properties which operate as
    public schools in the City. The School Board uses the City’s stormwater
    management system to drain stormwater runoff from its ten properties. There
    is no written contract or agreement between the City and the School Board
    for the payment of stormwater utility fees. Nevertheless, the School Board
    had paid stormwater utility fees assessed by the City for many years.
    3
    In May 2012, the School Board stopped paying the City stormwater
    fees after this Court issued its decision in Florida Keys Community College,
    which held that a community college, a state entity, enjoyed sovereign
    immunity from suit for non-payment of the City of Key West’s stormwater
    utility fees whether the municipality claimed Chapter 180 or Chapter 403 as
    the basis of its authority to charge a stormwater utility fee. 
    81 So. 3d at
    497–
    98.
    The City then sued the School Board to collect the stormwater utility
    fees. As mentioned above, the School Board moved to dismiss on the
    grounds of sovereign immunity. The trial court denied the motion and
    specifically found the School Board “is not entitled to sovereign immunity as
    a matter of law pursuant to Section 166.042, Florida Statutes and Section
    167.01, Florida Statutes (1971).” The School Board timely appealed.
    ANALYSIS
    We have jurisdiction to review appeals of nonfinal orders that “deny a
    motion that . . . asserts entitlement to sovereign immunity.” Fla. R. App. P.
    9.130(a)(3)(F)(iii). Based on the newly amended rule, “our jurisdictional
    inquiry now focuses not on the challenged order, but rather on the motion
    that the order adjudicates.” City of Sweetwater v. Pichardo, 45 Fla. L. Weekly
    D2756 (Fla. 3d DCA Dec. 9, 2020).
    4
    Although a stormwater utility fee is not a tax, but is instead a user fee
    that a party can avoid by declining to use the service that the fee funds, City
    of Key West v. Key West Golf Club Homeowners, 
    228 So. 3d 1150
    , 1155
    (Fla. 3d DCA 2017), the district courts have uniformly held that State entities
    that use a municipal stormwater utility infrastructure to manage their
    stormwater runoff have sovereign immunity from being charged stormwater
    utility fees and such immunity has not been waived by either Chapter 180 or
    Chapter 403, the current legislative expressions of the municipal authority to
    charge stormwater utility fees.
    In Florida Keys Community College, for example, this Court rejected
    the City of Key West’s argument that the Legislature had waived sovereign
    immunity in Chapters 403 and 180 “with respect to imposition of stormwater
    fees.” 
    81 So. 3d at 497
    . This Court reasoned “the waiver of sovereign
    immunity as to certain enumerated utilities in section 180.13 cannot and does
    not by inference apply to the City’s stormwater utility fees.” 
    Id.
     at 498–99.
    And accordingly, because “Chapter 403, which specifically relates to
    stormwater utility fees, does not expressly waive sovereign immunity for
    stormwater utility fees, it is clear that the State has not waived sovereign
    immunity in Chapter 403.” 
    Id. at 498
    .
    5
    In doing so, this Court cited City of Gainesville v. State Department of
    Transportation, 
    920 So. 2d 53
     (Fla. 1st DCA 2005), review denied, 
    935 So. 2d 1219
     (Fla. 2006). In Gainesville, the First District affirmed a trial court’s
    dismissal of the City of Gainesville’s action to collect stormwater utility fees
    from the Florida Department of Transportation. Like here, there was no
    written contract between the parties to collect stormwater utility fees
    authorized under Chapter 403. After rejecting the argument that “since DOT
    is a person within the meaning of chapter 180, Florida Statutes, sovereign
    immunity is waived, and the City [of Gainesville] does not need a contract to
    collect stormwater utility fees,” the First District held:
    Statutes purporting to waive sovereign immunity are strictly
    construed in favor of the State, and must be clear and
    unequivocal. Waiver of sovereign immunity will not be implied.
    Here, the City refuses to accept that chapter 180 has a very
    specific listing of the municipal services included within its scope.
    One municipal service not included in that list is stormwater
    runoff. The Legislature, for whatever reason, decided not to
    include stormwater runoff within the scope of chapter 180. We
    are unable to rewrite the chapter to provide the relief sought by
    the City. Because chapter 180 does not provide a waiver of
    sovereign immunity for utilities authorized pursuant to chapter
    403, the parties’ circumstances have not changed since the first
    appeal.
    Consequently, although the stormwater fee may be a valid
    utility fee, consistent with our previous opinion, before the City
    can sue to collect the fee, it must have a written
    contract. See City of Gainesville v. Fla. Dep’t of Transp., 
    778 So.2d 519
    , 530 (Fla. 1st DCA 2001). Since the City
    6
    acknowledges it does not have a written contract, the trial court
    properly dismissed the City’s complaint with prejudice.
    
    Id.
     at 53–54 (internal citations omitted). Gainesville has been cited with
    approval to reject similar attempts by municipalities to collect stormwater
    utility fees by the Second District 1 and the Fourth District. 2
    The City attempts to avoid these cases by going back in time and citing
    section 167.01, Florida Statutes (1971), as the basis for its authority to
    charge stormwater utility fees. The City contends section 167.01 constituted
    an express, clear, and unequivocal waiver of sovereign immunity as it relates
    to every person (and governmental entity) that uses a municipality’s
    stormwater management system and receives a benefit from such use.
    Section 167.01 read:
    The city or town council may . . . construct drains and
    sewers . . . and charge upon those benefited such reasonable
    assessments as may be agreed upon by said council and the
    1
    The Second District issued a per curiam affirmance citing Gainesville in an
    appeal by the City of Clearwater regarding stormwater utility fees assessed
    against a school board. See City of Clearwater v. Sch. Bd. of Pinellas Cnty.,
    
    17 So. 3d 1287
     (Fla. 2d DCA 2009).
    2
    Citing Gainesville and Florida Keys Community College, the Fourth District
    issued a per curiam affirmance in its review of a trial court’s entry of final
    judgment, which found the School Board of Palm Beach County enjoys
    sovereign immunity from suit by the City of West Palm Beach for non-
    payment of stormwater utility fees. City of West Palm Beach v. Sch. Bd. of
    Palm Beach Cnty., 
    264 So. 3d 195
     (Fla. 4th DCA 2019); Sch. Bd. of Palm
    Beach Cnty. v. City of West Palm Beach, No. 50-2013-CA-010144, 
    2018 WL 1946699
     (Fla. Cir. Ct. 2018).
    7
    said party or parties . . . and every person who enters his
    particular drain into the main drain, or common sewer, and
    receives a benefit therefrom draining his land, shall pay to the
    city or town his proportional part of making or repairing the same.
    § 167.01, Fla. Stat. (1971). This statute, however, was repealed by the
    Municipal Home Rule Powers Act in 1973. Nevertheless, the City cites to the
    following existing statutory language indicating that the repeal of section
    167.01 was not intended to prevent it from exercising powers it had
    authorized:
    It is the legislative intent that the repeal by chapter 73-129,
    Laws of Florida, of chapters 167 . . . of Florida Statutes shall not
    be interpreted to limit or restrict the powers of municipal officials,
    but shall be interpreted as a recognition of constitutional powers
    . . . . It is, further, the legislative intent that municipalities shall
    continue to exercise all powers heretofore conferred on
    municipalities by the chapters enumerated above . . . .
    § 166.042(1), Fla. Stat. (2020).
    Without delving too deeply into this novel argument, we decline to
    accept that a repealed statute provides the clear and unequivocal legislative
    expression of intent needed to waive sovereign immunity, American Home
    Assurance Co. v. National Railroad Passenger Corp., 
    908 So. 2d 459
    , 471
    (Fla. 2005), in light of the district court cases uniformly holding the
    Legislature did not waive sovereign immunity in Chapters 180 and 403, the
    current statements of municipal authority to charge stormwater utility fees.
    Reversed and remanded.
    8