Wolstoncroft v. Cnty. of Yolo
| Decision Date | 30 August 2021 |
| Docket Number | C091399 |
| Citation | 68 Cal.App.5th 327,283 Cal.Rptr.3d 561 |
| Court | California Court of Appeals Court of Appeals |
| Parties | Bonnie WOLSTONCROFT et al., Plaintiffs and Appellants, v. COUNTY OF YOLO, Defendant and Respondent. |
Benink & Slavens and Eric J. Benink for Plaintiffs and Appellants.
Philip J. Pogledich, County Counsel, and Eric May, Senior Deputy County Counsel; Colantuono, Highsmith & Whatley, Michael G. Colantuono and John Lorenzo Jones II for Defendant and Respondent.
This reverse validation action was brought by Bonnie Wolstoncroft, William C. Unkel, and Michael Wilkes (collectively petitioners) against the County of Yolo (County)1 to challenge the County's plan to continue water service to 95 residences within the North Davis Meadows County Service Area (County Service Area) by replacing two aging groundwater wells with the City of Davis's (City) water supply. Under this plan, North Davis Meadows residents would pay substantially higher water rates to pay for the project.
The County considered the increased water rates to be property-related fees and noticed a Proposition 218 () hearing.
Under Proposition 218, different procedural requirements apply depending on whether the levy is an assessment or property-related fee. (Compare Cal. Const., art. XIII D, § 4 [assessments] with § 6 [property-related fees].)2 Assessments require majority approval of property owners while property-related fees can be defeated by majority protest of property owners. ( Bighorn-Desert View Water Agency v. Verjil (2006) 39 Cal.4th 205, 215, 46 Cal.Rptr.3d 73, 138 P.3d 220 ( Bighorn ).) After conducting a public hearing, the Board of Supervisors adopted resolution No. 18-28 to approve an increase in water service fees to fund the project to extend the water service from the City's water supply to North Davis Meadows. The parties subsequently executed two tolling agreements to extend the deadline for petitioners to file a reverse validation action.
More than five months after the County adopted its resolution, but before the deadline contemplated by the parties’ tolling agreement, petitioners filed their action in superior court. The trial court rejected petitioners’ argument that the increased levy constituted an assessment for which majority approval is required by Proposition 218. The trial court also rejected petitioners’ contentions that the County wrongfully rejected protest votes it claimed not to have received or received in an untimely manner.
On appeal, petitioners contend (1) the levy constitutes an assessment under Proposition 218 because it is not a property-related fee, (2) even if a property-related fee, the exaction still violates article XIII D, section 6, subdivision (b)(4), because it does not provide water service that is "immediately available," and (3) the trial court erroneously refused to consider evidence of three valid protests. On our own motion, we directed the parties to address the issue of whether this case must be dismissed for lack of jurisdiction because the action was filed by petitioners more than 60 days after the Board of Supervisors adopted the resolution to approve the increased water service fee. (See Code Civ. Proc., § 863 ; Gov. Code, § 25210.6.)
We have received and considered supplemental letter briefs from petitioners and the County. We conclude that petitioners timely filed their reverse validation action in compliance with the parties’ tolling agreements. On the merits of petitioners’ claims, we conclude that the trial court correctly determined that the levy constitutes a property-related fee under Proposition 218. The fee authorized by resolution No. 18-28 provides existing customers with continued water service. The fact that maintaining adequate water supply requires switching water sources does not turn the fee into an assessment. Thus, the County properly employed the majority protest procedure under article XIII D, section 6. We further conclude that even if the trial court erred in denying petitioners’ motion to augment the record with declarations regarding two mailed protest votes, petitioners’ evidence would not prove timely compliance with the protest procedure. Without the protest votes for which only evidence of mailing was tendered, the protest lacked a majority. Accordingly, we affirm the judgment.
North Davis Meadows draws upon two water wells that are approaching the end of their estimated useful lives. Well No. 1 relies on electrical equipment and controls that need to be replaced, and the well draws sand. In 2009, the nitrate level in well No. 1 water exceeded the maximum contaminate level and required users to be notified of the unsafe water condition. In 2016, the water drawn from well No. 2 was subject to a compliance order due to excessive nitrate, aluminum, and iron levels. Well No. 2 – like the other well – has "issues with subsidence." These water wells serve 95 residences within North Davis Meadows, an unincorporated subdivision in the County.
Since 2010, the County has been working to address the water quality and supply problems relating to its two wells. Numerous discussions between the County, City, and North Davis Meadows residents have explored consolidating North Davis Meadows with the City's water supply. Alternate proposals such as drilling new wells and a "dual-connection system" including existing wells and City water have been explored. In 2014, the City joined with the City of Woodland and UC Davis to create a surface water supply project that significantly changed the City's water supply. North Davis Meadows was not included in the surface water project. In 2015, North Davis Meadows residents expressed a preference for a dual-connection system. A dual-connection system, however, did not appear sufficient to meet North Davis Meadows's fire protection needs.
A 2017 survey of North Davis Meadows residents found that the option of connecting to the City's supply for all of the County Service Area's water had been gaining support. The County amended its agreement with its engineering consultant to pursue this option and noticed a Proposition 218 hearing on increasing water rates to fund the project. The engineer's report estimated the cost of consolidation with the City's water supply at $8.25 million. The project was anticipated to increase the annual water bill for each North Davis Meadows resident from $2,118 to $6,021. Even so, the plan to rely entirely on the City's water supply appeared to be the least expensive of the options considered.
In early 2018, notice of a Proposition 218 hearing was mailed to all North Davis Meadows property owners. On March 20, 2018, the Board of Supervisors held a public hearing on the proposal to connect North Davis Meadows to the City's water supply. Prior to the public hearing, the County received 46 protest votes – two protest votes fewer than required to block the fee under California Constitution article XIII D, section 6, subdivision (a)(2). During the public portion of the hearing, members of the public commented on the project. One additional protest vote was received after the close of the public portion of the hearing and deemed untimely. In the absence of sufficient protest votes to block the project, the Board of Supervisors adopted resolution No. 18-28 to approve the property-related water service fee.
On October 4, 2018, petitioners filed a petition for writ of mandate and complaint for reverse validation ( Code Civ. Proc., § 863 ) and declaratory relief. The County opposed the petition and complaint. A bench trial culminated in a judgment for the County. The trial court stated its reasons as follows:
The trial court entered judgment on January 16, 2020, and petitioners filed a timely notice of appeal.
In response to our request for supplemental briefs, petitioners argue that their action was timely under tolling agreements signed by the parties. The County agrees that the parties intended to toll the filing deadline for the reverse validation action but notes that we must nonetheless address the issue of jurisdiction. We conclude that the reverse validation statutes are subject to a statute of limitations that may be extended by agreement of the parties.
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