City of Ceres v. City of Modesto

• Decision Date: 01 July 1969
• Citation: 79 Cal.Rptr. 168,274 Cal.App.2d 545
• Court: California Court of Appeals Court of Appeals
• Parties: CITY OF CERES et al., Plaintiffs and Appellants, v. CITY OF MODESTO et al., Defendants and Respondents. Civ. 1103.

Page 168

79 Cal.Rptr. 168

274 Cal.App.2d 545

CITY OF CERES et al., Plaintiffs and Appellants, v. CITY OF MODESTO et al., Defendants and Respondents.

Civ. 1103.

Court of Appeal, Fifth District, California.

July 1, 1969.

Rushing & Clark and Albert G. Clark, Jr., Modesto, for appellants.

Elwyn L. Johnson, City Atty. for City of Modesto, Frank C. Damrell, Jr., Asst. City Atty. for City of Modesto, Modesto, for respondents.

GARGANO, Associate Justice.

This litigation is the culmination of a long-standing dispute between two cities over the future annexation of certain contiguous unincorporated territory. The background facts, as gleaned from the record, are these: The dispute between the City of Modesto and the City of Ceres as to which city should eventually annex the unincorporated area of Stanislaus County that lies between the southern boundary of Modesto and the northern boundary of Ceres, was apparently brought to a head when 60 residents petitioned Ceres to annex the territory to that city. The disagreement was then presented to the Local Agency Formation Commission of Stanislaus County to resolve. ¹ Subsequently, the commission adopted a resolution establishing 'the tentative future boundaries' for the feuding cities in a manner that gave the 'no man's land' to the City of Ceres. A few months later Modesto commenced to prepare plans for the installation of a sewage disposal system. Under these plans the proposed sewer trunk lines will extend throughout the entire city and into the adjoining disputed unincorporated area. In the meanwhile, Ceres extended its own sewer lines to within 2,000 feet of the disputed area. It also made extensive studies on the feasibility of extending the lines into that area. Thus, when Ceres learned of Modesto's plans, it brought this action for injunctive relief. It was joined in the action by Thomas Lacey, a taxpayer of the City of Modesto. Modesto demurred to the complaint on the ground that neither plaintiff had stated a cause of action. The demurrer was sustained without leave to amend, and appellants have appealed from the judgment of dismissal.

On the one hand, Ceres contends that the resolution which the Local Area Formation Commission adopted legally fixed the future boundaries for the two disgruntled cities, and hence gave Ceres the sole right to annex the unincorporated territory that lies between them. It also contends that the proposed installation of sewer trunk lines by Modesto into the disputed area is a 'wrongful and unlawful encroachment' into territory designated by the Local Agency Formation Commission 'to be within the sphere of influence of the City of Ceres.' On the other hand, Thomas Lacey asserts that the construction of sewer lines by Modesto in an unincorporated area which it can never annex, and at an expenditure of almost twice what it would have cost Ceres to construct similar sewer lines in the same area, is an illegal expenditure of Modesto's tax funds. Thus, both appellants vigorously assert that the court below erred when it sustained Modesto's demurrer without leave to amend.

It is of course true that a city may not annex territory unless the proposal to annex the territory is first submitted to and approved by the local agency formation commission of the county in which the city is located (Gov.Code, §§ 35002 and 54791). In this connection, Government Code, section 35002 provides:

'No petition seeking the annexation or transfer of territory to a city shall be circulated or filed, nor shall any public officer accept any such petition for filing, nor shall any legislative body initiate proceedings to annex or transfer on its own motion, until approval of the local agency formation commission is first obtained * * *.'

However, appellants do not allege in their complaint, nor do they presently contend, that the City of Modesto has instituted proceedings to annex the disputed unincorporated territory or that it is about to do so without first securing the approval of the Local Agency Formation Commission of Stanislaus County. Consequently, as to the City of Ceres, the crucial question is whether the Local Agency Formation Commission of Stanislaus County had the power to establish future boundaries for the two adjoining cities, and if so, whether its action foreclosed Modesto from making any further attempts to induce annexation proposals contrary to the tentative boundaries established by the commission. Stated in general terms, the question posed by Ceres is: Does a local agency formation commission have the power to decide which of two cities shall be entitled to annex certain unincorporated areas at sometime in the future, and if so, does its action also deprive one of the cities of the right to extend city services into that territory during the interim?

A local agency formation commission, commonly referred to as LAFCO, is a creature of the Legislature and has only those express (or necessarily implied) powers which are specifically granted to it by statute. In short, LAFCO is a public entity created by legislative fiat, and like similarly constituted public entities is a body of special and limited jurisdiction (Conover v. Board of Equalization, 44 Cal.App.2d 283, 112 P.2d 341). Thus, we must look to Chapter 6.6 of Division 2 of Title 5 of the Government Code (the enabling act under which LAFCO was formed) for the answer to our questions. The pertinent sections of this chapter and division are sections 54774, 54775, 54790, 54791, 54792, 54796 and 54799.

Section 54774 reads in pertinent part:

'Among the purposes of a local agency formation commission are the discouragement of urban sprawl and the encouragement of the orderly formation and development of local governmental agencies based upon local conditions and circumstances. One of the objects of the local agency formation commission is to make studies and to obtain and furnish information which will contribute to the logical and reasonable development of local governments in each county and to shape the development of local governmental agencies so as to advantageously provide for the present and future needs of each county and its communities.

'In addition to its other powers the local agency formation commission may initiate and make studies of existing governmental agencies. Such studies may include but shall not be limited to inventorying such agencies and determining their maximum service area and service capacities. If such studies are made, the commission may ask for land use information, studies, and plans of cities, counties and districts. Cities, counties, and districts shall comply with the request of the commission for such information and the commission shall make its studies available to cities, counties, and districts. In making these studies, the commission may cooperate with the county planning commissions.

'Such information and studies shall be used by the commission as the basis for regular decisions on proposals over which it has jurisdiction. The commission may recommend governmental reorganizations to particular agencies in the county, using the above information as the basis for such recommendations. Such recommendations shall be made available, upon request, to other governmental agencies or to the public.'

Section 54775 reads in pertinent part:

'* * * 54

'(e) 'Local agency' means a city or a special district.

'* * *oca

'(g) 'Proceedings' means the procedure authorized the required by any law for the inforporation of a new city, the formation of a special district, the annexation of territory to a local agency or the exclusion of territory from a city, or the disincorporation of a city.'

Section 54790 reads in pertinent part:

'The commission shall have the following powers and duties, subject to the limitations upon its jurisdiction herein set forth:

(a) To review and approve or disapprove with or without amendment, wholly, partially or conditionally proposals for:

(1) The incorporation of cities;

(2) The formation of special districts, and

(3) The annexation of territory to local agencies, * * *

(4) The exclusion of territory from a city.

(5) The disincorporation of a city.

Section 54791 reads in pertinent part:

'Proceedings shall not be initiated until application is made to the executive officer and approval is given by the commission of the principal county. * * *'

Section 54792 reads in pertinent part:

'Each application shall be in such form as the commission may prescribe and shall contain:

'(a) A statement of the nature of each proposal and the name or names of the districts or cities which would be affected thereby;

(b) A description of the houndaries of the territory proposed to be incorporated into a new city, to be formed into a special district, to be annexed to a local agency or to be excluded from a city;

* * *'esc

Section 54796 reads:

'Factors to be considered in the review of a proposal shall include but not be limited to:

(a) Population, population density; land area and land use; per capita assessed valuation, topography, natural boundaries, and drainage basins; proximity to other populated areas; the likelihood of significant growth in the area, and in adjacent incorporated and unincorporated areas, during the next 10 years.

(b) Need for organized community services; the present cost and adequacy of governmental services and controls in the area; probable future needs for such services and controls; probable effect of the proposed incorporation formation, annexation, or exclusion and of alternative courses of action on the cost and adequacy of services and controls in the area and adjacent areas.

(c) The effect of the proposed action and of alternative actions, on adjacent areas, on mutual social and economic interests and on the local governmental structure of the county.

(d) The definiteness and certainty of the boundaries of the territory, the nonconformance of proposed boundaries with lines of assessment or...