MEMORANDUM DECISION

Petitioner SWVA, Inc. (SWVA), an industrial customer of Respondent Huntington Sanitary Board (Sanitary Board), objected to the process by which the Sanitary Board sought a rate increase in December 2016. Just prior to approval of the ordinance implementing the rate increase by Respondent City Council of the City of Huntington (City Council) in December 2016, SWVA sought a writ of mandamus and injunctive relief from the Circuit Court of Cabell County claiming that the Sanitary Board did not comply with statutory notice requirements. The circuit court denied the relief sought on the grounds that SWVA has an administrative remedy with the Public Service Commission (PSC) for challenging the Sanitary Board’s alleged noncompliance.¹

Because this case does not present a new or significant issue of law, and we find no prejudicial error, we find that this case satisfies the “limited circumstances” requirements under Rule 21(d) of the West Virginia Rules of Appellate Procedure, and a memorandum decision under that rule is, accordingly, appropriate.

I. Factual and Procedural Background

The operative facts in this case are undisputed by the parties and involve a series of meetings conducted by the Sanitary Board and the City Council in December 2016. First, the Sanitary Board met to consider proposed rate increases to fund fifteen itemized projects in the total amount of $75 million. During this meeting on December 5, 2016, discussion turned to a new statutory provision requiring the Sanitary Board to provide prior public notice of construction projects that are not in the ordinary course of business. Concerns raised included whether the ordinance implementing the rate increase could be presented for approval by City Council prior to new City Council members taking office at the beginning of 2017. Ultimately, the Sanitary Board adjourned without taking action; a second meeting was scheduled for December 7, 2016.

When the Sanitary Board convened on December 7, 2016, it considered “An Ordinance Established and Fixing Rates, Fees and Charges of the Municipal Sewer System of Huntington, West Virginia” (Ordinance). The Ordinance proposed a three-step increase in rates charged by the Sanitary Board in order to fund $7.5 million in construction projects (reduced from the $75 million in projects proposed in the prior meeting). The Sanitary Board approved the Ordinance for consideration by City Council.

After a first reading, the City Council referred the Ordinance to its Finance Committee. During a meeting conducted on December 14, 2016, detailed presentations regarding the rate increases and the nine (reduced from fifteen) construction projects to be funded were made. During the public comment period of the meeting, SWVA representatives John O’Connor and Elizabeth Grille presented opposition to the proposal. By unanimous vote, the Finance Committee sent the Ordinance back to City Council with a positive recommendation.

On December 15 and 22, 2016, the Sanitary Board and City Council caused to be published in the Herald Dispatch newspaper a notice that the Council intended to take up consideration of the proposed Ordinance. The notice included the full text of the proposed Ordinance and stated that the hearing would be held on December 27, 2016, at 7:30, if interested parties wanted the opportunity to address the matter. A second notice was published on December 16 and 23, 2016, again providing the date and time of the hearing, and also informing the public that a copy of the Ordinance could be obtained from the Huntington City Clerk’s office.

SWVA contends that it “was concerned about the effect the proposed rates increases would have on its operations,” but was unable “to obtain, never mind digest, specifics about the Ordinance within the compressed timeframe.” For that reason, on December 27, 2016 – the same day as the hearing – SWVA filed a complaint and petition for writ of mandamus and injunctive relief against the Sanitary Board and City Council. As relief, SWVA sought (1) a declaration that the nine proposed projects were not in the ordinary course of business and, thus, the Sanitary Board and the City Council were required to give public notice compliant with West Virginia Code § 24-2-11(l) (2015)²; (2) a mandate that the Sanitary Board and City Council comply with the notice requirements set forth in that section; and (3) an order preventing a vote on the proposed Ordinance until the notice requirements were met. SWVA filed a motion for a preliminary injunction and a temporary restraining order seeking to compel or enjoin noncompliance with the notice requirements, prohibit further consideration of the Ordinance, and to annul any decision made relating to the Ordinance if made in violation of West Virginia Code § 24-2-11(l).

That evening, the City Council convened its hearing to consider the proposed Ordinance. After debate and public comment, the City Council approved the Ordinance by a 7-3 vote. The next day, a hearing on SWVA’s motions was noticed for January 10, 2017. At that hearing before the circuit court, the Sanitary Board argued that the majority of the injunctive relief requested by SWVA was now moot. Further, the Sanitary Board argued that SWVA was not entitled to any of the remaining requested relief because (1) the improvements approved by the City Council in the Ordinance were in the “ordinary course of business” for which no notice is required under West Virginia Code § 24-2-11(l); and (2) SWVA had not exhausted its administrative remedies available through the PSC.

Following the hearing, the circuit court denied SWVA’s motions, and dismissed its complaint with prejudice. In doing so, the circuit court found that the improvements adopted in the Ordinance were in the “ordinary course of business” and, therefore, did not require notice under W. Va. Code § 24-2-11(l). The circuit court also determined that the statutes governing the PSC provided an adequate remedy at law, and that SWVA was required to exhaust that specific administrative remedy. Specifically, the circuit court referenced West Virginia Code §§ 24-2-1(b)(6) and (7) (2015) as providing an adequate remedy for SWVA, because those sections grant the PSC jurisdiction “over large municipal utilities, such as [the Sanitary Board], with regard to the investigation and resolution of disputes involving their ‘rates, fees and charges,’ and . . . provides that customers of those large municipal utilities may bring complaints before the commission regarding those rates [sic] fees and charges.”

SWVA appeals to this Court and argues that the circuit court erroneously characterized its challenge to the Ordinance as a complaint regarding the rates, fees and charges raised in the Ordinance when, in fact, it was challenging the Sanitary Board’s and City Council’s failure to comply with the notice requirements of West Virginia Code § 24-2-11(l). As a result of that mischaracterization, SWVA argues that the circuit court erroneously concluded it had a remedy under West Virginia Code § 24-2-1(b)(6) and (7). SWVA further argues that the circuit court erred in determining that the projects considered in the proposed Ordinance were “in the ordinary course of business” such that the notice requirements under § 24-2-11(l) were inapplicable.

II. Standard of Review

As we have established, “[a] de novo standard of review applies to a circuit court’s decision to grant or deny a writ of mandamus.”³ We are likewise governed by a de novo standard of review in determining the scope of the PSC’s statutorily granted jurisdiction: “‘[w]here the issue on an appeal from the circuit court is clearly a question of law or involving an interpretation of a statute, we apply a de novo standard of review.’ Syl. Pt. 1,

Chrystal R.M. v. Charlie A.L., 194 W.Va. 138, 459 S.E.2d 415 (1995).”⁴ With these standards in mind, we turn to the parties’ arguments.

III. Discussion

Central to the circuit court’s denial of SWVA’s writ of mandamus was SWVA’s failure to meet the third element of our oft-repeated standard relating to when mandamus may be appropriate: “‘To invoke mandamus the relator must show (1) a clear right to the relief sought; (2) a legal duty on the part of the respondent to do the thing relator seeks; and (3) the absence of another adequate remedy.’ Syl. Pt. 2,

Myers v. Barte, 167 W.Va. 194, 279 S.E.2d 406 (1981).”⁵ As we have discussed, “‘the burden of proof as to all the elements necessary to obtain mandamus is upon the party seeking the relief[,] . . . a failure to meet any one of them is fatal.’”⁶ Accordingly, the circuit court denied the writ of mandamus having determined that SWVA had an adequate remedy before the PSC to challenge the rates, fees and charges in the Ordinance. The circuit court concluded that redress was available to SWVA under West Virginia Code §§ 24-2-1(b)(6) and (7), which provide:

The jurisdiction of [the PSC] over political subdivisions of this state providing separate or combined services and having at least four thousand five hundred customers and annual combined gross revenue of $3 million or more that are political subdivisions of the state is limited to⁷: . . .

(6) Investigation and resolution of disputes involving political subdivisions of the state regarding inter-utility agreements, rates, fees and charges, service areas and contested utility combinations.

(7) Customers of water and sewer utilities operated by a political subdivision of the state and customers of stormwater utilities operated by a public service district may bring formal or informal complaints regarding the commission’s exercise of the powers

enumerated in this section and the commission shall resolve these complaints.⁸

SWVA contends that it does not have a remedy under these provisions because the challenge it raised to the Ordinance does not involve the rate, fees and charges, but rather the failure of the Sanitary Board and the City Council to comply with the notice provisions required under West Virginia Code § 24-2-11(l) prior to consideration of the Ordinance.⁹ More

specifically, SWVA argues that it challenges the Ordinance because the notices published in the Herald Dispatch did not adequately notify the public or customers as required under the notice provision and thus, § 24-2-1(b)(6) and (7) do not apply to grant the PSC jurisdiction over its challenge to the Ordinance. Even accepting SWVA’s argument that it challenges the Ordinance based on the lack or insufficiency of the notice as opposed to the rates, fees and charges the Ordinance imposes, we find that SWVA has an available remedy through the PSC under §24-2-1(b)(2) (2015).¹⁰

West Virginia Code § 24-2-1(b)(2) grants the PSC jurisdiction over “[r]egulation of measurements, practices, acts or services, as granted and described in section seven of this article[.]”¹¹ Section seven, in turn, provides, in relevant part:

Whenever, under the provisions of this chapter, the commission shall find any regulations, measurements, practices, acts or service to be unjust, unreasonable, insufficient or unjustly discriminatory, or otherwise in violation of any provisions of this chapter, or shall find that any service is inadequate, or that any service which is demanded cannot be reasonably obtained, the commission shall determine and declare, and by order fix reasonable measurement, regulations, acts, practices or services, to be furnished, imposed, observed and followed in the state in lieu of those found to be unjust, unreasonable, insufficient or unjustly

fees and charges may be inspected by the public. A reasonable number of copies of the proposal shall be kept at the place or places and be made available for public inspection. The notice shall also advise that interested parties may appear at the public hearing before the political subdivision and be heard with respect to the proposed construction and the proposed rates, fees and charges.

discriminatory, inadequate or otherwise in violation of this chapter, and shall make such other order respecting the same as shall be just and reasonable.¹²

SWVA alleges that the public notices provided by the Sanitary Board and the City Council were either insufficient or were in violation of the notice provisions, codified in § 24-2-11(l) – one such “provision of this chapter.” When § 24-2-1(b)(2), the jurisdictional provision, is reviewed in conjunction with § 24-7-2(a), it is apparent that jurisdiction with regard to challenges to the notice provisions of chapter 24 is clearly and unambiguously granted to the PSC. This Court has long held that “[w]hen a statute is clear and unambiguous and the legislative intent is plain, the statute should not be interpreted by the courts, and in such case it is the duty of the courts not to construe but to apply the statute.”¹³ Applying the statute to these circumstances, the PSC has jurisdiction over SWVA’s challenge to the Ordinance for failure to fully comply with the notice provisions set forth in § 24-2-11(l).

In addition to SWVA’s failure to meet the third element required for mandamus to issue, we have also discussed that “[t]he general rule is that where an administrative remedy is provided by statute or by rules and regulations having the force and effect of law, relief must be sought from the administrative body, and such remedy must be exhausted before the courts will act.”¹⁴ Further, we have explained that “[p]roceedings in equity for injunctions cannot be maintained where there is an administrative remedy provided by statute which is adequate and will furnish proper remedy.”¹⁵ Thus, the circuit court did not err in denying the writ of mandamus or in denying injunctive relief on the grounds that SWVA had another remedy at law that had not been exhausted.

SWVA next raises as error the circuit court’s determination that the projects were “in the ordinary course of business” and therefore the forms of notice provided for under West Virginia Code § 24-2-11(l) were not required.¹⁶ For the same reasons set forth above, however, the

circuit court did not have jurisdiction to determine whether the notice provisions were applicable, and therefore should not have ruled on the merits of whether the projects were or were not “in the ordinary course of business” so as to trigger the notice requirements. As we have discussed, insufficiency of or noncompliance with public notice required under West Virginia Code § 24-2-11 is within the jurisdiction of the PSC, not the circuit court.

For the foregoing reasons, we affirm the result reached by the circuit court in denying the writ of mandamus and injunctive relief for failure to exhaust an available administrative remedy.

Affirmed.

ISSUED: November 14, 2017

CONCURRED IN BY:

Chief Justice Allen H. Loughry II

Justice Robin Jean Davis

Justice Margaret L. Workman

Justice Menis E. Ketchum

Justice Elizabeth D. Walker