FI FTH DI VI SI ON

REESE, P. J.

, M A RKLE and COLVI N, JJ.

N O T IC E : M otions for r e c ons i de r a tion m us t be

ph y sic a l ly r e ce iv ed i n our c le r k ’s offic e w ithin te n

da y s of the da te of de c is ion to be de e m ed tim e ly file d.

https ://w w w

. ga a ppe a ls .us /r ule s

D E A D LIN E S A R E N O LO N G E R TO LLE D IN T

H I S

C O U R T. A LL FILIN G S M U ST B E S U B M I TTE D WITH IN

TH E TIM E S S E T B Y

O U R C O U R T R U LE S

.

Febr uar y 26, 2021



# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A2 0 A1 93 2

. CITY OF SANDY SPRINGS v

. CITY OF ATLANTA.

R E E S E

, Pres i di n g J u d g e.

Th e Ci t y o f San d y Sp ri n g s su ed t h e Ci ty o f At l an ta, al leg i n g v i ol at i o n s o f t h e

Op en Reco rd s Act 1 an d t h e Serv i ce Del i v ery St rat eg y ( “ S D S”) Act

, 2 an d s eek i n g

i n ju n ct i v e rel i ef. Th e Su p eri o r Co u rt o f Fu lt o n Co u n t y d i s m is s ed Co u nt s 2 an d 3 o f

t h e s eco n d am en d ed co m

p l ai nt

, wh i ch al l eg ed v i o l at i o n s o f t h e SDS Act

, an d d en i ed

San d y S p ri n g s ’ s m o ti o n t o t ran s fer v en ue. San d y Sp ri n g s ap peal s

, arg ui n g t h at t h e

s u p eri o r co u rt erred i n fi n d i n g t h at San d y Sp ri n g s h ad t o be a p art y t o t h e c u rren t

s erv i ce d el i v ery s trat eg y i n o rd er to u s e OCGA § 3 6 -7 0 -2 8 (c), t h at t h e co u rt erred in

fi nd i ng t h at San d y Sp ri n g s w as req u i red t o en g ag e i n al t ern at i ve d i s p ut e res o l u t i o n

1 See OCGA § 5 0 -1 8 -7 0 et s eq

.

2 See OCGA § 3 6 -7 0 -2 0 et s eq

.b efo re u s i n g OCGA § 3 6 -7 0 -2 4

, an d th at t h e co u rt l ack ed ju ri s d i ct i o n

. Fo r t h e reas on s

s et fo rt h i n fra, we affi rm

.

Vi ewi n g as t r u e a l l w el l-p l ead ed m at eri al al leg at i on s

, 3 t h e seco n d am en d ed

co m p l ai n t (t h e “ Co m

pl ai n t ”) al l eg ed t h at i n Oct o b er 20 0 5

, a s erv i ce d el i v ery

ag reem en t d es i g n at e d t he Ci t y o f At l an t a as t h e d i rect ret ai l wat er s erv i ce p ro v i d er

fo r al l o f u n i n co rp o rat ed Fu l to n Co u n t y

, wh ich i n cl u ded t he area t h at was l at er

i n co rp o rat ed as t h e Ci t y o f San d y Sp ri n g s i n Decem b er 2 0 0 5

. C o un t 2 al l eg ed t h at

At l an t a m ai n t ai n ed an o u t s i d e ci t y wat er rat e t h a t w as 2 1 p ercen t h i gh er t h an t h e

i n s i d e wat er rat e, an d t h at t h i s rat e d i fferen t i al was arb i t rary

, i n v io l at i o n o f OCGA

§ 3 6-7 0-2 4 (2 ) (B).

Co u nt 3 o f th e Co m

p l ai n t al l eg ed t h at At l an t a’ s refu s al t o rev iew an d rev i s e t h e

wat er fees as s es s ed to San dy Sp ri n g s cu s t o m ers v io l at ed t h e SDS Act

, an d t h at San dy

Sp ri n g s was en t i t l ed t o al tern at i v e d i s p u t e res o l u t io n u n d er OCGA § 3 6 -7 0-2 8 (c),

an d s p eci fi cal l y t h at a ju d g e o u t s i d e t h e ci rcu it i n i t i at e m an d at o ry m ed i at i o n p u rs u an t

t o OCGA § 3 6 -7 0 -2 5 .1 (d ) (1 ). San d y Sp ri n g s fi l ed a m ot i o n t o t r a n s fer v en ue,

3 See At l a n t a Met r o Lea s i n g v. Ci t y o f At l a n t a

, 3 5 3 G a. A p p

. 7 8 5

, 7 8 6 (8 3 9

SE2 d 2 7 8) (2 0 2 0).

2req u es t i ng t ran s fer t o an ad jo i n in g ju d i ci al ci rcu i t s u p eri o r co urt p u rs u an t t o § 3 6 -7 0

-

2 5 .1 (d ) (1 ) (A).

Th e s u p eri o r co urt g ran t ed At l an t a’ s m o t i o n t o d i sm i s s Co u n t s 2 an d 3 an d

d en ied t h e m o ti on t o t ran s fer ven u e. Th e co u rt fo u n d t h at Co u n t 2 was p rem at u re

b ecau s e n o al t ern at i v e d i s p u te res o l u t i o n h ad o ccu rred

, as req u i red b y OCGA § 3 6

-

7 0 -2 4 (2 ) (B). Th e co u rt d i sm i s s ed Co u n t 3 an d d en i ed t h e t ran s fer m o t i on b ecau s e

San dy Sp ri ng s ad m it t ed i t was n o t a p art y to th e cu rren t s erv i ce d el i very s t rat eg y

, an d

t h erefo re co u l d n ot av ai l it s el f o f th e pr o c e d u re s et fo rt h i n OCGA § 3 6 -7 0-2 8 (c).

Th i s ap p eal fo l l o wed

.

In co n s i d eri n g d i s m i s s al u nd er OCGA § 9 -1 1 -1 2 (b ) (6 ) [fo r

fai l u re t o st at e a cl ai m u p o n wh i ch rel i ef can b e g ran t ed ]

, t he tri al co u rt

m u s t accep t as t ru e al l wel l -p l ed m at eri al al l eg at i o n s i n th e co m p l ai n t

an d m u s t res o l ve an y d ou b t s i n fav o r o f th e p l ai n ti ff. Th i s co urt rev i ews

a t ri al co u rt ’ s ru l i ng o n a m o ti o n t o d is m i ss d e n o v o

, v i ewi n g as t ru e al l

wel l -p l ead ed m at eri al al l eg at i o n s i n t h e co m p l ai n t. H o wev er, we are

u n d er n o o b l ig at i o n t o ad o p t a p art y ’ s l eg al co n cl u s i on s b as ed o n t hes e

fact s

. 4

4 At l a n t a Met r o Lea s i n g

, 3 5 3 Ga. Ap p

. at 7 8 6 (ci t at io n s an d pu n ct u at i o n

o m it t ed ).

3W i th th es e g u id in g p ri n ci pl es i n m i n d

, we t u rn n o w t o t h e cl ai m s o f erro r as sert ed by

San dy Sp ri n g s

.

1

. San d y Sp ri n g s arg u es t h at t h e t ri al co u rt erred b y h o l d i n g t h at San dy Sp ri ng s

was req u i red to b e a p art y t o t h e cu rren t serv i ce d el iv ery s t rat eg y b efo re i t co u ld

u t i l i z e s u b s ect i o n (c) o f OCGA § 36 -7 0 -2 8 (“ Sect i o n 2 8 ”). In Co u n t 3 o f t h e

Co m p l ai n t

, San d y Sp ri n gs al l eg ed t h at i t h ad req u es ted t h at At l an ta rev i ew an d rev i s e

i t s wat er fees p u rs u an t t o s u b s ect i o ns (b ) (2 ) an d (b ) (3 ) o f Sect i on 2 8

. 5

Un d er s u b s ect i o n (c) of Sect i o n 2 8

, “ [i ] n t h e ev en t t h at a co u n ty o r an affect ed

m u ni ci p al i ty l o cat ed wi t h in t h e co u n ty refu s es t o rev i ew an d rev is e, if n eces s ary

, a

s t rat eg y i n an acco rd an ce wi t h p arag rap h s (2 ) an d (3 ) of s u b s ect i on (b )[,] t hen an y o f

t h e p a rt i es m ay u s e t h e al t ern at i v e d i s p u t e res o l u t io n an d p ro ced u res s et fo rt h in

[OCGA § 3 6 -7 0 -2 5 .1 (d )] .” “ As u s ed i n [Sect i o n 2 8 ]

, t h e term ‘ affect ed m u ni ci p al i t y ’

m ean s each m

u n i c i pal i t y req u i red t o ad o p t a res o l u ti on ap p ro v i n g t he l o cal

5 Un d er OC GA § 3 6 -7 0 -2 8 (b ) (2 ) an d (3 ), “ [e] ach co u n t y an d affect ed

m u ni ci p al i ty s h al l rev i ew, an d rev is e i f n eces s ary

, t h e ap p ro v ed s trat eg y : [w] h en ev er

n eces s ary to ch an ge s erv i ce d el i very o r rev en u e d is t ri b u t i o n arran g em en t s ; [o r

w] h en ev er n eces s ary d u e t o ch an g es i n rev en u e d i s t ri b u t i o n arran g em en t s [.] ”

4g o v ern m en t serv i ce d el i v ery s t rat eg y p urs u an t t o su b sect i o n (b ) o f Co de Sect i o n 3 6

-

7 0 -2 5.” 6

Vi ewi n g as t ru e t h e wel l

- ple a de d m a t e r i al al leg at i on s i n t h e Co m p l ai n t

, Sect i o n

2 8 do es n o t ap p l y to t h e p a r t i e s ’ d i s p u t e. San dy Sp ri n g s was n o t i nco rp o rat ed u n t i l

Decem b er 2 0 0 5

, an d t hu s i s n o t an “ affect ed m u ni ci p al i t y ” as i t was n ot req u i red to

ad o pt a res o l ut i o n ap p ro v in g t h e s erv ice d el i v ery s t rat eg y b ecau s e th e s t ra t e g y was

al read y i n p l ace. 7

In s t ead

, t h e m ore sp eci fi c s t at u t e, OCGA § 36 -7 0 -2 4 (“ Sect i o n 2 4 ”), reg ard i n g

wat er rat e d i fferen t i al s , ap p l i es

. 8 Th at s ect i o n p ro v i d es i n rel ev an t p art :

If a g o v ern i n g au t ho ri t y d i s p u t es t he reas o n ab l en es s of wat er an d s ewer

rat e d i ffe r e n t i al s im

p o s ed w i t hi n i t s ju ri s d i ct io n by an o t h er g o v ern i n g

au t h ori t y

, t h at di s p u t i n g g o v ern i n g au t h o ri ty m ay h o l d a p u b li c h eari n g

fo r t h e p u rp o s e o f rev i ewi n g t h e ra t e d i fferen ti al

. Fo l l o wi n g th e

p rep ar at i o n o f a rat e s t u d y b y a q u al i fi ed en g i n eer, t h e g o v ern i n g

au t h ori t y m a y ch al l en ge t h e arb i t rary rat e d i fferen t i al s o n b eh al f o f i t s

6 OCGA § 3 6 -7 0-2 8 (a).

7 See OCGA § § 3 6 -7 0 -2 5 (b ); 3 6 -7 0 -2 8 (a).

8 See S o ut h s t a r En er

g y Svcs

. v. El li s on

, 28 6 Ga. 7 0 9

, 7 1 2 (1 ) (6 9 1 SE2 d 2 0 3 )

(2 0 1 0) (“ Fo r p u rp o s es o f s t at u to ry i n t erp ret at i o n, a s p eci fi c s tat u t e wi l l p rev ai l o v er

a gen eral s t at u t e, ab s en t an y i n d i cat i o n of a co n t rary leg i sl at iv e i n t en t .”) (ci t at i o n an d

p u n ct u at i o n o m it t ed ).

5res i d en ts in a co u rt o f co m p et en t ju ri s di ct i o n

. Pri o r t o s u ch ch al len g e,

t h e d i s p u te s h al l b e s u bm i t t ed t o so m e fo r m o f a l t ern at i v e d i s p ut e

res o lu t i o n [.] 9

Th u s

, u n d er t h e p l ai n l an g u ag e o f Sect i o n 2 4

, 1 0 i n o rd er to en g ag e in a d i s p u t e

reg ard i n g wat er rat es

, a g o v ern i n g au t h o ri t y m u s t co n du ct a p ub l ic h eari n g

, s ecu re a

rat e s t u d y

, an d p art i ci p at e i n s o m e fo rm o f al t ern at iv e d is p u te r e s o l u t i o n

. Th e t ri al

co u rt d i d n o t err i n fi n d i n g t h at San d y Sp ri n g s w as no t en t i t l ed t o av ai l i t sel f o f t h e

p ro ced ure s et fo rt h i n Sect io n 2 8 (c).

2

. San d y Sp ri n g s co n t en d s t h at t h e tri al co u rt erred i n fi n d in g t hat t h e l aws u i t

was p rem at u re u nd er Sect io n 2 4

, an d d id no t ad dres s San d y Sp ri n g s ’ s arg u m en t t h at

i t co u l d u s e m an d at o ry m ed i at io n u nd er OCGA § 3 6 -7 0 -2 5

. 1 ( d ) t o s at i s fy Sect i o n

2 4 ’ s req u i rem en t t h at t h e d i s p u t e b e s u b m i t ted t o “ ‘ s o m e fo rm ’ o f al t ern at i v e d i s p u t e

res o l ut i o n[.] ”

9 OCGA § 3 6 -7 0-2 4 (2 ) (B).

1 0 See Mi n n ix v. Dep t

. o

f Tr a n s p

. , 27 2 Ga. 5 6 6

, 5 7 1 (3 ) (5 3 3 SE2 d 7 5 ) (2 0 0 0 )

(“ W h ere

. . . t h e lan g u ag e o f a st at u t e is p l ai n o n i t s face, ju d i ci al co n s t ru ct i o n i s n ot

o n l y u n n eces s ary , b u t i s fo rb i d d en .”).

6A s w i t h S ect i o n 2 8, 1 1 OCGA § 3 6 -7 0-2 5 .1 (a) d efi n es t he t erm “ affect ed

m u ni ci p al i ty .” 1 2 T h u s

, un d er t h e p l ai n l an g u ag e 1 3 o f O CGA § 3 6 -7 0 -2 5 .1

, an d fo r t h e

s am e reas o n s s et fo rt h i n D i v i s i o n 1, San d y Sp ri ng s i s n o t an affect ed m u n i ci p al i t y

,

an d t h i s s ect i on ’ s d i s p u te res o l u t i o n p ro ced u res do no t ap p ly t o t h e w a t er rat e

d i fferen ti al d i s pu t e b et ween At l an t a an d San dy Sp ri n g s

. 1 4

3

. San d y Sp ri n g s arg u es t h at t h e t ri al co u rt l ack ed j u ri s d i ct i o n an d s h o u l d h av e

t ran s ferred t h e cas e p urs u an t to t h e m an d at e co n t ai n ed i n OCGA § 3 6 -7 0 -2 5 .1 (d ) (1 )

(A).

1 1 See Di v i s i o n 1 , s u p ra, d i s cu s s i n g OCGA § 3 6 -7 0 -2 8 (a).

1 2 S e e O C G A § § 3 6 -7 0 -2 5 .1 (a) (“ As u sed i n t h i s Co d e s ect i on

, t h e t erm

‘ affect ed m

u n ici p al i ty ’ m ean s each m u n i ci p al i t y r eq u ired t o ad o p t a res o l u t i o n

ap p ro v i n g t h e lo cal g o v ern m en t s erv i ce d el i v ery s t rat eg y p u rs u an t t o s u bs ect i o n (b )

o f C ode S e c t i o n 3 6 -7 0 -2 5 .”); 36 -7 0 -2 5 (b ) (“ Th e co u nt y an d each m u ni ci p al i t y wi t h in

t h e co u n t y s h al l p art i ci p at e in t h e d ev el o p m en t o f t h e [ s e r v i c e d el i v ery ] s t rat eg y

. Ap p ro v al o f t h e s trat eg y

s h al l b e acco m

p li s h ed b y ad o p ti o n o f a res o lu t i o n [.] ”).

1 3 See Mi nn i

x , 2 7 2 G a. at 5 7 1 (3 ).

1 4 See OCGA § 3 6 -7 0 -2 5 .1 (b ) (“ If a co u n t y an d t h e affect ed m u n i ci pal i t i es in

t h e co u n t y d o no t reach an ag reem en t o n a s erv i ce d el i v er y st rat eg y

, t h e p ro v i s i on s

o f t h i s Co d e Sect i o n s hal l b e fo l l o wed as t h e p ro ces s t o res o l v e t he d i s p ut e.”)

7As d i s cu s s ed ab ov e, b ecau s e San d y Sp ri n g s i s n o t a n “ a f fect ed m u n i ci p al i t y [,] ”

OCGA § 3 6 -7 0 -2 5 .1 (d ) (1 ) 1 5 d o es n o t ap p ly

.

Ju d g men t a f f i r m ed . Ma r

kl e a n d Co l vi n , JJ., co ncu r

.

1 5 OCGA § 3 6 -7 0 -2 5.1 (d ) p ro v i d es i n rel ev an t part : “ In t h e e v en t t h at t h e

co u nt y an d t h e affect ed m un i ci p al i t i es i n t h e co un t y fai l t o reach an ag reem en t aft er

t h e i m p o s i t i o n of s an ct i o ns p ro v i d ed i n Co d e Sect i o n 3 6-7 0 -2 7, t h en th e fo l l o wi n g

p ro ces s i s av ai l ab l e t o t h e p a rt i es : (1 ) (A) T h e co u n t y o r an y affect ed m u ni ci p al i t y

l o cat ed wi t h in t h e co u nt y m ay fi l e a p et i t i o n i n s u peri o r co u rt o f t h e co u nt y s eek i n g

m an d at o ry m e d i at i o n

. Su ch p et i t i o n s h al l be as s ig n ed t o a ju d g e, p u rs u an t t o Co d e

Sect i o n 1 5 -1 -9 .1 or 1 5 -6 -1 3

, wh o i s n o t a ju d g e i n t he ci rcu i t i n wh i ch t h e co u n t y i s

l o cat ed

. Th e ju d g e s el ect ed m ay al s o b e a s en io r ju d g e p urs u an t t o Co d e Sect i o n

1 5 -1 -9 .2 wh o res i d es i n an o t h er ci rcu it .”

8