The complaint also names Lakewood, Puyallup, Bonney Lake and Ruston, although those communities have paid Tacoma or have agreed to do so, Gleason said. They account for almost 89 fire hydrants, or $54,000.

Reimbursement wasn't an issue before the state Supreme Court issued a decision out of King County last October. The court ruled that Lake Forest Park, the city receiving the water, was responsible for installing fire hydrants, not its water provider, the City of Seattle.

The Supreme Court reaffirmed a trial court decision that found "providing fire hydrants is a government responsibility for which a government must pay," out of its general fund, according to the published opinion.

Jim Doherty, legal consultant for Seattle-based Municipal Research and Services Center of Washington, says the decision left governments across the state with questions about who should pay whom.

Tacoma is asking $700,000 a year from Pierce County for more than 2,500 hydrants. Al Rose, Pierce County's executive director for justice services, said he agrees with Tacoma that the responsibility of providing hydrants falls on local governments.

But the Supreme Court decision didn't answer whether indemnity clauses in franchise agreements would shield the outlying governments from having to pay. Pierce County, University Place and other local governments have such clauses in their contracts with Tacoma Water.

The court needs to also decide whether Tacoma's methodology of calculating the bill is accurate, he said.

"They're just looking for more guidance from the court," Rose said.

Tacoma's complaint also states that if local governments are protected by indemnity clauses, it will increase the water rates for that community's customers.

It was scheduled to increase rates to outlying customers by 8 percent this year and 6 percent by 2010.

But in the wake of the Supreme Court decision, it lowered the increase to 4 percent this year and 3 percent next year. If the Pierce County judge doesn't allow Tacoma to recoup its expenses from its outlying communities, the utility will likely raise rates back up to 8 percent and 6 percent.

Gleason said it's a matter of fairness.

"Yes, if the organizations that haven't paid us are covered by indemnity clauses, then we will ask for a rate adjustment specific to those organizations to get that money back," she said. "That way we don't have City of Tacoma customers pay for the fire hydrants in Federal Way."

Doherty put it this way: "Ultimately, it's the residents who pay the tab. It's just a matter of what pocket it comes out of."

"If you pay for hydrants through the water company, it's a rate increase," he added. "If you pay through the general fund, it's a tax increase."

A hearing is scheduled for October in Pierce County Superior Court.

Brent Champaco: 253-597-8653

brent.champaco@thenewstribune.com

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