Committee of Seven Thousand v. Superior Court

• Citation: 754 P.2d 708,247 Cal.Rptr. 362,45 Cal.3d 491
• Court: United States State Supreme Court (California)
• Decision Date: 31 May 1988
• Parties: , 754 P.2d 708 COMMITTEE OF SEVEN THOUSAND et al., Petitioners, v. The SUPERIOR COURT of Orange County, Respondent; CITY OF IRVINE et al., Real Parties in Interest. L.A. 32181.

Page 362

247 Cal.Rptr. 362

45 Cal.3d 491, 754 P.2d 708

COMMITTEE OF SEVEN THOUSAND et al., Petitioners, v. The SUPERIOR COURT of Orange County, Respondent;

CITY OF IRVINE et al., Real Parties in Interest.

L.A. 32181.

Supreme Court of California,

In Bank.

May 31, 1988.

Fredric D. Woocher, Lisa Foster, Carlyle W. Hall, Jr., Los Angeles, for petitioners.

Roger A. Grable, City Atty., for City of Irvine, Heather A. Mahood, Rutan & Tucker, Costa Mesa, Alvin S. Kaufer, Robert D. Thornton, Peter C. Hoffman, Nossaman, Guthner, Knox & Elliott, and James E. Erickson, Los Angeles, for real parties in interest.

Adrian Kuyper, County Counsel (Orange), Gene Axelrod, Deputy County Counsel, Don V. Collin, Parker & Covert, Clayton H. Parker, Santa Ana, Wendy H. Wiles, Newport Beach, Rourke & Woodruff, Kennard R. Smart, Jr., Lois E. Jeffrey, Thomas F. Nixon, Orange, Paone, Genovese, Callahan, McHolm & Winton and Tim Paone, as amici curiae on behalf of real parties in interest.

KAUFMAN, Justice.

We granted review in this case to consider whether Government Code section 66484.3 (all further statutory references are to this code unless otherwise stated), which permits city councils in Orange County to impose development fees to fund construction of major thoroughfares, renders invalid a proposed initiative measure which would prohibit Irvine's city council from imposing a new fee or tax to finance construction of any new transportation corridor, freeway, highway, or other road without first submitting the new fee or tax to a vote of the electorate. As we will explain, we have concluded that the initiative conflicts with section 66484.3. Because it addresses a matter of statewide concern, the statute prevails and the initiative is invalid. We will therefore affirm the judgment of the Court of Appeal. 194 Cal.App.3d 1076, 221 Cal.Rptr. 616.

I. FACTS AND PROCEDURAL HISTORY

In the late 1970's three new "transportation corridors" were proposed for construction in Orange County. Designated the San Joaquin Hills, Eastern, and Foothill corridors (hereafter the corridors), they would be high-speed, high-volume, controlled-access facilities, designed to meet minimum state and federal standards, and were planned for eventual incorporation into the state highway system. The cost of their construction has been estimated to be approximately $1 billion. As of 1985, however, no state or federal funds had been committed to these projects.

In April 1984, the Orange County Board of Supervisors requested the Orange County Transportation Commission to serve as a facilitator in efforts to have 11 Orange County cities join in a partnership to build the corridors. ¹ The Orange County Transportation Commission explored two methods for raising the needed funds. The first method, which would have provided funds for other transportation improvements as well as the corridors, called for increasing the sales tax by 1 percent for a period of 15 years (see Pub.Util.Code, § 130400 et seq.). The proposed sales tax increase was placed before the voters, as required by state law, as Proposition A on the June 1984 ballot. The measure was defeated by a wide margin.

Proponents of the corridors then focused their attention on the other proposed funding plan--the imposition of fees on new development--which had been under study for at least two years. Section 66484, a provision of the Subdivision Map Act, authorizes cities and counties to impose fees as a condition of subdivision map approval or building permit issuance, with the fees to be used to defray the cost of constructing major thoroughfares and bridges to service the new development. In January 1984, legislation had been introduced (Assem. Bill No. 2431 (1983-1984 Reg. Sess.)) to clarify and amend section 66484 so it could be used to provide funding for the corridors. In particular, the legislation would have expressly permitted a city to impose a development fee for facilities shown on its general plan but located outside the city. The proposed amendments to section 66484 drew opposition and were replaced by a proposed new provision, section 66484.3, which would apply only to Orange County and cities located therein. The new provision was duly enacted as an urgency measure and became law. (Stats.1984, ch. 708, § 1, p. 2619.)

Section 66484.3 authorizes both the County of Orange and the cities within the county to adopt major thoroughfare and bridge fee programs (hereafter MT & BF programs), and to enact ordinances imposing fees against new development in designated benefit areas in order to fund the construction of major highway projects in the county. (See also, § 50029.) Section 66484.3 establishes a procedure for enacting such ordinances, requires deposit of the collected fees in a special fund dedicated to the purposes for which the ordinance was passed, and provides methods for borrowing or spending from the general fund in expectation of the proceeds of such fees. The development fee program is based on the general principle that future development will benefit from construction of major highways and should pay for them in proportion to projected usage attributable to the development.

On October 3, 1984, the Orange County Board of Supervisors adopted a MT & BF program and established areas of benefit for the corridors in the unincorporated areas of the county. The county began collecting fees under its program in November 1984. The county also drafted joint powers agreements, under which construction of the corridors is to be administered by two joint powers agencies--the Foothill/Eastern Transportation Corridor Agency and the San Joaquin Hills Transportation Corridor Agency--consisting of those entities which have instituted fee programs. (See § 6500 et seq.) Each joint powers agency shall be formed when at least five public entities have adopted the fee program and have approved the agreement creating the agency.

Under the joint powers agreements, all fees collected under the MT & BF programs for the corridors are to be remitted to the joint powers agencies. The MT & BF programs have been designed to raise approximately 48 percent of the total cost of constructing the corridors, with the balance to be sought from existing state and federal programs.

The City of Irvine is a charter city within the County of Orange and was reportedly the fastest growing city in the state at the time of the litigation below. Each of the three corridors would pass through or be adjacent to Irvine, which is therefore eligible for membership in both joint powers agencies. Assuming that all eligible entities joined the agencies, it has been estimated that Irvine would contribute approximately 25 percent of the fees collected for the corridors (or roughly 12 percent of the total cost).

In September 1984, Irvine's city council adopted several policy statements supporting imposition of development fees to finance construction of the corridors, and in February 1985 it conditionally approved Irvine's participation in the MT & BF program. The mayor executed two memoranda of understanding stating that the corridors were "regional in nature and must be planned, financed, and constructed as a cooperative effort by cities, the County of Orange, [and] the state and federal governments...."

Committee of Seven Thousand, ² an unincorporated nonprofit association of residents and electors of the City of Irvine, was organized in July 1984 for the purpose of qualifying as an initiative a measure entitled The Citizens' Right-to-Vote Ordinance (hereafter the initiative). The initiative, if adopted, would prohibit the city council, on and after January 1, 1985, from imposing or collecting, or joining any agency for the purpose of imposing or collecting, "any new fee or tax which would finance or aid in the financing of: the San Joaquin Hills Transportation Corridor (Freeway); the Foothill Transportation Corridor (Freeway); the Eastern Transportation Corridor (Freeway); or any new corridor, freeway, highway, or other road of any designation" except "by passage of a ballot measure approved by a majority of the qualified electors of the City voting on the measure at a regular or special election." Expressly excluded from the initiative's vote requirement are "proceedings for the construction of City owned streets the cost of which, or any portion of which, is to be borne by special assessments upon real property" and also fees relating to the Irvine Business Complex.

On June 24, 1985, the initiative petition was filed with Irvine's city clerk, who thereafter certified to the city council that the petition contained the verified signatures of 8,701 registered voters (19 percent of the total), thus qualifying for the ballot. ³

On July 26, 1985, an action for writ of mandate was commenced to prohibit Irvine's city clerk and city council from placing the initiative on the ballot. (Munsell et al. v. City of Irvine (Super.Ct. Orange County, No. 46-47-20).) The petitioners in that action include two individuals who are residents and taxpayers of the City of Irvine. The other petitioners (all corporations with members who are companies and individuals paying taxes to and owning businesses in the City of Irvine) are the Building Industry Association of Southern California, Inc., Orange County Region; the Irvine Chamber of Commerce; the Industrial League of Orange County; and the Orange County Chamber of Commerce. These petitioners (hereafter collectively the initiative opponents or opponents) contend that the initiative is invalid and beyond the power of the electorate to enact because it would interfere with essential governmental functions by restricting the taxing and revenue-raising authority of the city, because it addresses a matter of statewide concern as to which the Legislature has delegated discretionary authority to the city council alone, because it attempts to be effective retroactively, and because it is ...