Millview Cnty. Water Dist. v. State Water Res. Control Bd., A146605

• Decision Date: 22 February 2019
• Docket Number: A146605
• Citation: 244 Cal.Rptr.3d 44,32 Cal.App.5th 585
• Court: California Court of Appeals Court of Appeals
• Parties: MILLVIEW COUNTY WATER DISTRICT, Plaintiff and Respondent, v. STATE WATER RESOURCES CONTROL BOARD, Defendant and Appellant; Sonoma County Water Agency, Real Party in Interest and Respondent.

32 Cal.App.5th 585

244 Cal.Rptr.3d 44

MILLVIEW COUNTY WATER DISTRICT, Plaintiff and Respondent,

v. STATE WATER RESOURCES CONTROL BOARD, Defendant and Appellant;Sonoma County Water Agency, Real Party in Interest and Respondent.

A146605

Court of Appeal, First District, Division 1, California.

Filed February 22, 2019

As Modified on Denial of Rehearing March 25, 2019

Kamala D. Harris, Attorney General, Robert W. Byrne, Assistant Attorney General, Annadel A. Almendras, William Jenkins and J. Kyle Nast, Deputy Attorneys General for Defendant and Appellant State Water Resources Control Board.

Neary and O’Brien and Christopher J. Neary, Willits, for Plaintiff and Respondent Millview County Water District.

Bartkiewicz, Kronick & Shanahan, Alan B. Lilly, Sacramento, Andrew J. Ramos, Walnut Creek; Bruce Goldstein, County Counsel and Cory W. O’Donnell, Deputy County Counsel for Real Party in Interest and Respondent Sonoma County Water Agency.

MARGULIES, Acting P. J.

The State Water Resources Control Board (Board) seeks review of the judgment entered following the issuance of a peremptory writ of mandate directing the Board to vacate and set aside its Order No. WR 2014-0021. The Board asserts the petition filed by Millview County Water District (Millview) was untimely, the Board’s hearing procedures were fair and in compliance with applicable law, and the trial court erred by not remanding the matter to the Board for further proceedings. We conclude Millview’s petition was time-barred and, accordingly, reverse the judgment.

I. BACKGROUND

In June 2006, Millview acquired ownership of License 5763 from Masonite Corporation. License 5763 authorized the direct diversion of water from the Russian River, at a maximum direct diversion rate of 5.9 cubic feet per second for industrial use within a designated area of Yokayo Rancho.

In May 2008, the Board’s Division of Water Rights issued a notice of proposed revocation to Millview regarding the water rights in License 5763. Shortly thereafter, Millview timely requested a hearing on the proposed license revocation. On April 2, 2013, the Board held a hearing to receive evidence as to whether License 5763 should be revoked. Millview appeared at the hearing through its counsel. It presented evidence, examined witnesses, and otherwise participated at the hearing. Millview also filed a closing brief following the hearing.

On April 22, 2014, the Board issued a draft order revoking License 5763. The cover letter stated the draft order "is tentatively scheduled to be considered for adoption by the [Board] during its May 20, 2014 meeting." After receiving written comments on the draft order, including written comments from Millview, the Board issued a notice of correction to one footnote in the draft order.

On May 20, 2014, the Board conducted a public meeting for which consideration of the draft order was an agenda item. Millview attended the meeting and gave an oral statement. At the conclusion of the public meeting, the Board found the water at issue had not been put to beneficial use for a period of five years or more and formally adopted the draft proposed order, along with the single correction previously circulated to the parties, as Order No. WR 2014-0021 (Order).

On May 30, 2014, Ernest Mona, an employee with the Board’s hearings and special programs section, e-mailed a copy of the Order to the various hearing participants, including Millview. The cover letter stated the Order was adopted by the Board on May 20, 2014 and the statute of limitations for seeking reconsideration began to run from that date. Neither party identifies any differences between the Order and the draft order and change sheet circulated prior to the public hearing.

On June 2, 2014, Mona e-mailed a "Corrected Version" of the Order (Corrected Order) to the various hearing participants, including Millview. The transmittal e-mail stated: "Order WR 2014-0021 attached to my May 30, 2014 email, has been ‘Corrected’ at page 18 of the order, to reflect that State Water Board Chair Marcus was absent during the Board’s adoption of the order." The cover letter stated: "Enclosed is corrected Order WR 2014-0021, which was adopted by the [Board] on May 20, 2014.... [¶] No later than 30 days after adoption of the corrected order, any interested person may petition the State Water Board for reconsideration ...." Neither party identifies any additional changes made to the Order.

On June 30, 2014, Millview filed a petition for writ of administrative mandamus (petition). The petition raised various allegations regarding the adequacy of the public hearing and the Corrected Order and requested the court issue a writ ordering the Board to set aside Order WR 2014-0021.¹ In response, the Board filed a demurrer asserting Millview failed to file the petition within the applicable 30-day statute of limitations, as set forth in Water Code² section 1126, subdivision (b) ( section 1126(b) ).

Millview subsequently filed an amended petition for writ of administrative mandamus (amended petition). The amended petition asserted the "final action" of the Board was taken on June 2, 2014, when it transmitted the Corrected Order to Millview. The Board again demurred to the amended petition as time-barred.

The trial court overruled the demurrer. The court concluded Millview adequately pled compliance with the 30-day statute of limitations. It noted a "final action" by the Board does not necessarily require a hearing but may arise from " ‘any decision or order.’ " The court concluded, "it is clear from the pleadings and records presently before the court that the June 2, 2014 decision is the ‘final’ decision of the board, from which the limitations period begins to run." The court did state, however, the Board could assert a statute of limitations defense. And the Board did so in its answer to the amended petition.

In its opposition brief to the amended petition, the Board again argued the petition was time-barred under section 1126(b). Millview’s closing brief argued otherwise. The trial court again rejected the Board’s argument and found Millview filed the petition within the applicable limitations period. In its judgment granting the peremptory writ of mandate, the trial court concluded the Corrected Order "constitute[d] a ‘final action’ insofar as it qualifies under the expansive language of § 1126 as ‘any decision or order.’ " The Board timely appealed.

II. DISCUSSION

A. Statute of Limitations

Both parties agree Millview’s petition is subject to the 30-day statute of limitations set forth in section 1126(b). Section 1126(b) states in relevant part: "Any party aggrieved by any decision or order may, not later than 30 days from the date of final action by the board, file a petition for a writ of mandate for review of the decision or order." The parties disagree as to what event constitutes the "final action by the board." The Board contends the "final action" occurred when the Board adopted the proposed order on May 20, 2014 because that adoption "completed and finalized the decisionmaking process." The Board further argues the subsequent conduct by the clerk of the Board—providing notice of the Order on May 30, 2014 and issuing the Corrected Order on June 2, 2014—were merely ministerial tasks. Millview, conversely, asserts the "final action" by the Board was its issuance of the Corrected Order or, alternatively, service of the Order. We address each argument in turn.

1. Whether the Corrected Order Constitutes a "Final Action"

Neither party has cited any authority interpreting "final action" as used in section 1126(b). Nor are we aware of any such authority. "Our fundamental task in interpreting a statute is to determine the Legislature’s intent so as to effectuate the law’s purpose." ( Coalition of Concerned Communities, Inc. v. City of Los Angeles (2004) 34 Cal.4th 733, 737, 21 Cal.Rptr.3d 676, 101 P.3d 563.) We begin by examining the statutory language, giving the words their usual, ordinary meanings and giving each word and phrase significance. ( Curle v. Superior Court (2001) 24 Cal.4th 1057, 1063, 103 Cal.Rptr.2d 751, 16 P.3d 166.) We consider such language " ‘in the context of the statutory framework as a whole in order to determine its scope and purpose and to harmonize the various parts of the enactment.’ " ( Sierra Club v. Superior Court (2013) 57 Cal.4th 157, 165, 158 Cal.Rptr.3d 639, 302 P.3d 1026.) " ‘If there is no ambiguity in the language, we presume the Legislature meant what it said, and the plain meaning of the statute governs.’ " ( Curle , at p. 1063, 103 Cal.Rptr.2d 751, 16 P.3d 166.) Only "[i]f the statutory language permits more than one reasonable interpretation" do we "consider other aids, such as the statute’s purpose, legislative history, and public policy." ( Coalition of Concerned Communities , at p. 737, 21 Cal.Rptr.3d 676, 101 P.3d 563.) Statutory construction is a question of law we decide de novo. ( People ex rel. Lockyer v. Shamrock Foods Co . (2000) 24 Cal.4th 415, 432, 101 Cal.Rptr.2d 200, 11 P.3d 956.)

a. The Statutory Framework

While neither section 1126(b) nor any corresponding provisions define "final action," we first look to the statutory framework for guidance as to the Legislature’s intent. In this instance, section 1122, which pertains to reconsideration, aids our interpretation. Section 1122 provides in relevant part: "the board may order reconsideration of all or part of a decision or order on the board’s own motion or on the filing of a petition of any interested person or entity." A petition for reconsideration "shall be filed not later than 30 days from the date the board adopts a decision or order ." (§ 1122, italics added.) The Board must either grant or deny a petition for reconsideration within "90 days from the date the board adopts the decision or order ." (Ibid. , italics added.) Section 1126(b) provides, in turn, any party aggrieved by any decision or order may, "not later than 30 days from the date of final action...