Nebraska Supreme Court Ruling: 1/13/06

THE NEBRASKA SUPREME COURT AFFIRMS (UPHOLDS) J-LAKE SID FORMATION Updated 1/16/06

A nine-page opinion was received on January 13, 2006, upholding the formation of the Johnson Lake SID in every aspect and rejected all claims made by those that appealed the case. The court's summary is:

This court has reviewed de novo the record, and we conclude that the district court did not err in finding that it had personal jurisdiction, the petitioners satisfied the statutory requirements to form an SID, and the SID would be conductive to the public health, convenience, or welfare. Therefore, we affirm the district court's establishment of SID No. 1 of Gosper County (and Dawson County), Nebraska. The complete opinion can be read here.

Johnson Lake gets OK for sanitary district
BY RICK RUGGLES, WORLD-HERALD STAFF WRITER, Published Saturday, January 14, 2006

Property owners around Johnson Lake in south-central Nebraska may create a sanitary and improvement district to deal with wastewater disposal problems, the Nebraska Supreme Court ruled this week. In an order released Friday, the Supreme Court wrote that proponents of the district, commonly called an SID, had devised the district legally.

SIDs typically are created at the inception of a subdivision or community. In this case, the Johnson Lake community long has been in existence, but the SID was set up to better deal with wastewater problems.

Similarly, Green Meadows, a 50-year-old neighborhood northwest of 135th and Blondo Streets in Omaha, was authorized by a judge in late 2004 to move ahead with an SID. Bob Huck, the attorney representing proponents of both the Green Meadows and Johnson Lake SIDs, said there are many lake communities considering the SID alternative to upgrade sewage treatment and other infrastructure.

Opposing property owners made various arguments against the Johnson Lake SID, claiming voting was tallied incorrectly to show a majority of property owners in support of the SID, and that it is only speculation that an SID would be conducive to the public good. The Supreme Court, affirming a ruling made in Gosper County District Court, found in favor of the proponents.

According to the Supreme Court's ruling, the Johnson Lake community comprises 920 residential lots, 28 businesses and two recreation areas, the majority of which sit on land owned by the Central Nebraska Public Power and Irrigation District. Some septic systems have failed, contributing to excessive levels of fecal bacteria in Johnson Lake, according to the Nebraska Department of Environmental Quality. Concerned residents and the public power and irrigation district decided to create an SID to develop a centralized wastewater system.

The SID will make special assessments and annually tax property owners for construction of a $10 million to $15 million wastewater collection and treatment system, said Huck of Omaha.

Supreme Court clears way for SID
By HARRY G. PERKINS , Hub Regional Correspondent Published Saturday, January 14, 2006

JOHNSON LAKE — The Nebraska Supreme Court on Friday upheld formation of a sanitary sewer system at Johnson Lake. “We conclude that the district court did not err in finding that it had personal jurisdiction, the petitioners satisfied the statutory requirements to form the SID (sanitary improvement district), and the SID would be conducive to the public health, convenience, or welfare,” the court ruled. There was no dissenting opinion.

Larry Ossenkop, clerk of the SID’s board of trustees, said the state’s Department of Environmental Quality confirmed Friday that a loan totaling $4 million will be available for the current fiscal year for construction. The interest rate on those funds will be 2.75 percent in addition to a 1-percent service fee. Other loans will be made as the construction unfolds.

The total of loans through DEQ may be sufficient to nearly cover the total cost of the project, which has been estimated at $16 million. The SID’s engineers have been sighting elevations and planning routes for the system. It will use a gravity system supported by lift stations where required. It is planned that the initial bid will be let this spring, covering construction of the system’s lagoon at a site as yet undetermined.

Payment of the eventual [assessment] cost of the system by property owners may not begin until property taxes are due in 2008, Ossenkop said. A portion of the cost will be charged equally to property owners, and a portion will be based on the assessed value of individual properties.

The court’s opinion noted that a study in 2002 revealed that 920 residential lots, 28 active businesses and two recreational areas maintained by the state Game and Parks Commission made up the Johnson Lake community.

The opinion said DEQ and Nebraska Health and Human Services said more than 50 percent of the septic systems then in use were out of conformance with the state’s setback requirements.

DEQ had found evidence of fecal coliform in the lake as the result of testing between 2001 and 2003. DEQ designated the lake an impaired water body. An engineering study in 2002 concluded that septic systems could no longer be relied upon and recommended a centralized collection and treatment system.

The petition requesting formation of the SID was filed Sept. 18, 2003. Nearly 100 property owners fought formation of the SID in Gosper County District Court. That number dwindled to fewer than 20 after an appeal to the state appellate court was filed. Subsequently, the high court took jurisdiction of the case and heard arguments early in November 2005.

Attempts to reach Steve Windrum of Gothenburg, attorney for the opponents to the SID, were unsuccessful. Windrum was not in his office Friday afternoon.