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    fiLE

    SUPERIOR COURT OF CALIFORNIA

    COUNTY

    OF

    MONT R Y

    M R 17 2 15

    Monterey Peninsula Taxpayers' Association,

    a California corporation, Ronald J Pasquinelli,

    Thomas

    J

    Rowley Jr. and Richards

    J

    Heuer, III,

    Petitioners/Plaintiffs

    Board

    of

    Directors

    of

    the Monterey Peninsula

    Water Management District and the Monterey

    Peninsula Water Management District

    Respondents/Defendants

    TERI8A

    A

    1 1 1 ~ 1

    CLERK OF THE SUPERIOR COURT

    K Ha DEPUTY

    • ILSOPl

    Case No. M123512

    Intended Decision

    This matter came on for court trial on February 23, 2015. Margaret

    L

    Thurn appeared on

    behalf

    of

    Petitioners/Plaintiffs. Michael

    G

    Colantuono and David

    J

    Rudderman appeared

    on

    behalf

    of

    Respondents/Defendants. The matter was argued and taken under submission. This

    intended decision shall suffice as a statement of decision as to all matters contained herein. (Cal.

    Rules

    of

    Court, rule 3.1590(c)(l).)

    Petitioners/Plaintiffs Monterey Peninsula Taxpayers' Association, Ronald J Pasquinelli,

    Thomas

    J

    Rowley Jr. and Richards J Heuer, III ( Petitioners ) brought this case against

    Respondents the Board

    of

    Directors

    of

    the Monterey Peninsula Water Management District and

    the Monterey Peninsula Water Management District ( Respondents and/or the District )

    to

    challenge actions related to the District's passage

    of

    Ordinance No. 152 (the Ordinance. ) The

    Ordinance imposes an annual charge on certain property within the District to support the

    District's water supply projects (the Charge. ) Petitioners objected to the Ordinance prior

    to

    its

    passage. However, the public failed to submit sufficient protest ballots to block the Ordinance

    under the procedures set forth in Proposition 218. Consequently, Petitioners circulated a petition

    RECEIVED M R

    17

    Z 15

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    seeking placement of a referendum to repeal Section Four of the Ordinance (the Petition. )

    Respondents refused to place the proposed referendum (the Referendum ) on the ballot,

    alleging that the Peti tion and Referendum suffered from fatal deficiencies. Petitioners now seek

    a writ of mandate and declaratory relief 1) that Respondents refusal to place the Referendum on

    the ballot exceeded their powers; 2) that Ordinance No. 152 violates the Dist rict' s enabling law;

    and 3) that Ordinance No. 152 violates the California Constitution.

    ackground

    The District is a public agency created by special law in 1977 to conserve[ e] and

    augment[] the supplies of water by integrated management

    of

    ground and surface water supplies,

    for control and conservation

    of

    storm and wastewater, and for promotion of the reuse and

    reclamation

    of

    water. (Wat. Code. Appen. § 118-2.) The Legislature observed that water

    service in the area is principally supplied by California American Water Company ( CAW ), a

    privately owned water supplier which does not have the facilities nor the ability to perform

    functions which are normally performed by public agencies Ibid.) Thus, the District was

    created to carry out such functions which can only be effectively performed by government,

    including, but not l imited to, management and regulation of the use, reuse, reclamation,

    conservation

    of water

    and

    bond financing of public works projects. Ibid.)

    For nearly 20 years, the District's primary revenue source was obtained via a user fee

    imposed by the District and collected by CAW on its customer bills. In 2011, the California

    Public Utilities Commission ( CPUC ) suspended CAW s collection

    of

    the user fee. (Pet. Ex.

    Y, at P418, § 3.) To make up the resulting revenue shortfall, the District developed the Charge.

    The Charge is imposed on all parcels connected to

    CAW s

    water distribution system. Subareas

    of

    the district not connected to the CAW system, such as the Bishop, Hidden Hills, Ambler, and

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    On July 26, 2012, the signed Petition was delivered to the District. (Pet. Ex. CB.) On

    August 30, 2012, the Monterey County Registrar

    of

    Voters certified the Petition, verifying all

    signatures in their entirety, and finding that the Petition contained 4,136 valid signatures, of

    which only 3,824 were necessary to qualify the Referendum for the ballot. (Pet. Ex. CE.)

    On September

    17

    2012, at a meeting

    of

    the Board, Respondents' General Manager David

    Stoldt reported that the Petition had received enough signatures to qualify the Referendum for

    the ballot. Mr. Stoldt listed five options he believed Respondents had as to how to address the

    Petition and proposed Referendum. Mr. Stoldt also offered five legal arguments, provided

    by

    outside counsel, against the validity of both the Petition and the Referendum. The Board

    concluded that both the Petition and the Referendum were invalid and that, accordingly, it was

    not under a duty to place the Referendum on the ballot. (Pet. Ex. CG.)

    On June 13, 2013, Petitioners filed a Verified Petition for Writ of Mandate seeking a writ

    compelling the District to submit the Referendum to voters. On May 23, 2014, Petitioners

    amended the Petition to add a cause

    of

    action seeking declaratory relief that the Ordinance

    exceeds the District 's authority. Petitioners now seek a writ compelling the District to submit the

    Referendum to the voters, or, alternatively, declaratory relief that the Ordinance is invalid.

    vidence Submitted

    Requests

    for

    Judicial Notice

    As to Petitioners' requests for judicial notice, the court declines to take Judicial Notice

    of

    pages 1-17 22-26 29 37 41-43 59 and 69-78 ofPetitioners' Exhibit A to Petitioners'

    5

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    44 (as to the last paragraph only), 50, 59, 61, 64 (as to the first paragraph only), and 65.

    4

    Petitioners' remaining evidentiary objections are overruled.

    Respondents' evidentiary objections are sustained as to numbers: 2, 6,

    10, 21, 27, 30, 32,

    38 and 41.

    5

    Respondents' remaining evidentiary objections are overruled.

    Legal Standards Governing Traditional Mandamus nd eclaratory Relief

    Petitioners seek issuance

    of

    a traditional writ of mandate under Code of Civil Procedure

    section 1085. Code

    of

    Civil Procedure section 1085, subdivision (a) provides, inter alia, that

    [a] writ

    of

    mandate

    may

    be issued by any court to any inferior tribunal, corporation, board, or

    person, to compel the performance of an act which the law specially enjoins, as a duty

    resulting from an office, trust, or station . To obtain a writ

    of

    mandate, Petitioners must

    show (1) no 'plain, speedy, and adequate ' alternative remedy exists (Code Civ. Proc., § 1086);

    (2) a clear, present, ... ministerial duty on the part of the respondent'; and (3) a correlative

    'clear, present, and beneficial right in the petitioner to the performance of that duty.' [Citations.]

    A ministerial duty is an obligation to perform a specific act in a manner prescribed by law

    whenever a given state of facts exists, without regard to any personal judgment as to the

    propriety ofthe act. [Citation.] People v Picklesimer (2010) 48 Cal.4th 330, 339-340.) t is

    4

    Petitioners' objections are granted on the following bases: Objections

    5 18:

    Secondary

    evidence. Objections 28, 34, 36, 44: Speculation, lack

    of

    foundation. Objections 42, 50:

    Improper lay opinion. Objection 4: Lack

    of

    personal knowledge, lack of foundation, and

    hearsay. Objection 10: Improper lay opinion, speculation, and secondary evidence. Objection

    35: Improper lay opinion, lack of foundation. Objection 59: Lack of personal knowledge,

    improper lay opinion, and hearsay. Objection 61: Lack offoundation. Objection 64: Lack of

    foundation, hearsay. Objection 65: Lack of authentication.

    5

    Respondents' objections are granted on the following bases: Objections 2, 6, 10, 38:

    Secondary evidence. Objections 27, 30,

    32,41:

    Lack of personal knowledge, improper lay

    opinion. Objection 21: Lack of authentication.

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      well settled that a writ of mandate is available to compel placement of a referendum on the

    ballot. (Geiger

    v

    Board o Supervisors (1957) 48 Cal.2d 832, 835.)

    Petitioners also seek declaratory relief that the Ordinance is invalid under both the

    District's enabling law and the California Constitution. A declaratory judgment action requires

    an actual controversy relating to the legal rights and duties of the respective partie.s. (Code

    Civ. Proc., § 1060.) [The] controversy must be of a character

    which

    admits of specific and

    conclusive relief

    by judgment

    within the field of udicial determination, as distinguished from an

    advisory opinion upon a particular or hypothetical state of facts. (Monahan v Department o

    Water Power (1941) 48

    Cal.App.2d

    746, 751.) And, while ordinances

    are

    inherently proper

    subjects of declaratory relief, yet a declaratory judgment may

    not

    be rendered in respect to them

    in disregard of the customary limitations upon the granting of such relief. ( d.) Here, there is

    no dispute that an actual controversy exists regarding an ordinance already in effect.

    Accordingly, the standards for obtaining declaratory relief

    have

    been satisfied.

    Discussion

    I. The District May Only Refuse to Place a Referendum on the Ballot

    if

    the Petition

    Violates Technical Requirements; it Lacks Authority to do so on Substantive

    Grounds

    Petitioners argue that the Referendum qualified for the bal lot and otherwise satisfied the

    statutory requirements of Elections Code section 914

    7

    Consequently, Petitioners reason, the

    District was under a legal obligation under Elections Code sec tions 9144 and 9145 to either

    repeal the Ordinance or submit the Referendum to voters.

    The right of referendum is one of the most precious rights of our democratic process.

    [Citation.] (Citizens

    or

    Responsible Behavior

    v

    Superior Court (1991) 1 Cal.App.4th 1013,

    1022.) Nevertheless,

    if the

    court is convinced, at any time, that a measure is fatally flawed

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    no purpose

    is

    served by submitting it to the voters.

    ( d.

    at pp. 1022-1023.) Respect for the right

    o

    referendum does not require the useless expenditure

    o

    money and creation

    o

    emotional

    community divisions concerning a measure which is for any reason legally invalid.

    (Id.

    at

    p.

    1023.)

    Respondents argue that the Referendum and Petition are invalid on four grounds:

    1

    that

    the Referendum would exceed the referendum power; 2) that Proposition 218 does not change

    this;

    3

    that the Petition would mislead voters; and 4); that the Referendum would violate the

    rights

    o

    District contractors.

    t

    is possible that one or more

    o

    these arguments may suffice

    to

    invalidate either the Petition or the Referendum. However, i t is clear that the District only had

    the authority

    to

    make a unilateral determination as to the technical, not substantive, validity

    o

    the Referendum and Petition.

    The courts have uniformly condemned local governments when these legislative bodies

    have refused to place duly qualified initiatives on the ballot. [Citations.]

    Save Stanislaus Area

    Farm Economy

    v.

    Board o Supervisors

    (1993) 13 Cal.App.4th 141, 148.) Indeed, [g]iven

    compliance with the formal requirements for submitting an initiative, the registrar must place it

    on the ballot unless he is directed to do otherwise by a court on a compelling showing that a

    proper case has been established for interfering with the initiative

    power.

    Farley v Healey

    (1967) 67 Cal.2d 325, 327.) The same analysis has been applied to referenda:

    t is not [a city clerk's] function to determine whether a proposed [referendum]

    will be valid i enacted These questions may involve difficult legal issues

    that only a court can determine. The right to propose [referendum] measures

    cannot properly be impeded by a decision

    o

    a ministerial officer, even

    i

    supported by the advice o the city attorney, that the subject is not appropriate for

    submission to the voters. Yost v. Thomas (1984) 36 Cal.3d 561, 564, fn.2

    quoting Farley, supra, 67

    Cal.2d at p. 327).)

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    In response, the District argues that it has a duty to examine referenda before placing

    them before voters, citing to, inter alia, deBottari

    v

    City Council (1985)

    171

    Cal.App.3d 1204,

    1213. The district's selective reading ignores the plain language

    of deBottari,

    which

    distinguished preelection nonjudicial review from preelection judicial review, and concluded that

    the relevant governmental entity had a mandatory duty either to repeal the challenged

    ordinances or to submit the ordinance to referendum unless 'directed to do otherwise by a court

    on a compelling showing that a proper case has been established for interfering with the

    [referendum] power. ' ( d. at p. 1204 (quoting Farley, supra, 67 Cal.2d at

    p

    327).) A local

    government is not empowered to refuse to place a duly certified initiative on the ballot.

    What should a local government do

    if

    it believes an initiative measure is unlawful and should not

    be presented

    to

    the voters? A governmental body, or any person or entity with standing, may file

    a petition for writ of mandate, seeking a court order removing the initiative measure from the

    ballot. [Citation.] But such entity or person may not unilaterally decide to prevent a duly

    qualified initiative from being presented to the electorate.

    (Save Stanislaus, supra,

    13

    Cal.App.4th at

    p

    49l

    However, this analysis does not apply to technical deficiencies in a referendum petition,

    which

    do

    not require an elections official to make quasi-judicial evaluations

    of

    a petition's

    validity. (Lin v City o Pleasanton (2009) 176 Cal.App.4th 408, 420.) In certifying a

    referendum petition, a clerk's duty is limited to the ministerial function of determining whether

    the procedural requirements have been met. [Citation.]

    (Ibid.)

    Thus,

    if

    Respondents can show

    6

    Even an improper refusal may be retroactively validated by a judicial declaration that

    the measure should not be submitted to the voters. (Citizens for Responsible Behavior

    v

    Superior Court

    (1991) 1 Cal.App.4th 1013, 1021.)

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    that the Petition failed to meet procedural requirements, such would be a valid ground for

    refusing

    to

    place the Referendum on the ballot.

    t

    is to this question that we now turn.

    II The Referendum Petition Violated the Elections Code

    The ministerial duty to examine a petition for technical deficiencies includes

    a

    determination

    of

    whether the petition includes the

    'text'

    of

    the ordinance challenged.

    [Citation.]

    I

    d. Technical deficiencies in referendum petitions do not invalidate those petitions

    so

    long as they are in 'substantial compliance' with statutory and constitutional requirements.

    [Citation.]

    (Assembly v Deukmejian

    (1982) 30 Cal.3d 638, 652.) However, where a petition

    fails to furnish the information required by the statute, i.e., the text or language

    of

    the

    challenged law, that petition is not in substantial compliance with statutory or constitutional

    requirements.

    (Billig v Voges

    (1990) 223 Cal.App.3d 962, 968.)

    Elections Code section 9147, subdivision (b) provides that [e]ach section

    of

    the

    referendum petition shall contain the title and text

    of

    the ordinance or the portion

    of

    the

    ordinance which is the subject

    of

    the referendum. The purpose

    of

    this requirement is to

    provide sufficient information

    so

    that registered voters can intelligently evaluate whether

    to

    sign

    the petition and to avoid confusion.

    (Mervyn s v Reyes

    (1998) 69 Cal.App.4th 93,

    99;

    Billig, supra,

    223 Cal.App.3d at

    p

    967 [the requirement stems from the need to fully inform[]

    [the prospective signor]

    of

    the substance

    of

    the challenged measure. ]) Critically, the text

    of

    the ordinance includes the words

    of

    the ordinance itself and documents that are physically

    attached as exhibits or incorporated by reference.

    (Lin, supra,

    176 Cal.App.4th at p. 417.)

    Thus, in

    Chase v Brooks

    (1986) 187 Cal.App.3d 657, a city council enacted a zoning

    ordinance which reclassified property described in an attached exhibit. The referendum petition

    at issue failed to include the exhibit, which described the property affected by the ordinance. The

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    court concluded that the failure to include the exhibit as part of the referendum petition was fatal

    because the petition was required to contain the entire text of the ordinance or the portion

    thereof which is the subject of the referendum. ( d. at pp . 662-663.) Similarly, in

    Billig, supra,

    223 Cal.App.3d at p. 964, the court upheld the rejection of a referendum petition which omitted a

    portion

    of

    the text of the ordinance and two exhibits which comprise[d] the major portion of the

    ordinance. And, in Nelson v. Carlson (1993)

    17

    Cal.App.4th 732, 739-740, the court found that

    a referendum petition challenging a land use plan violated the text requirement because it failed

    to include a copy of the general plan that was both attached to the resolution and expressly

    incorporated by reference.

    Here, Respondents concede that it is possible to referend part of a law, but argue that

    Petitioners' attempt to referend only Section Four amounts to a referendum on the entire

    Ordinance. Consequently, the fact that the Petition failed to provide the text

    of

    the entire

    Ordinance to voters meant that voters were not adequately informed

    as

    to the effects

    of

    the

    Referendum. In addition, Respondents argue that, at minimum, the Petition should have

    included the text of Section Five and District Law section 326, subdivision (g), both expressly

    referred to in Section Four. Petitioners respond that the Petition met all legal requirements by

    including the title and text of Section Four, the only challenged portion of the Ordinance.

    Petitioners are incorrect. The text

    of

    an ordinance has consistently been held to include

    documents expressly incorporated by reference into a challenged ordinance.

    Lin, supra,

    176

    Cal.App.4th at p 420;

    Billig, supra,

    223 Cal.App.3d at p 962.) This rule properly limits the

    function

    of

    an elections official to the ministerial function

    of

    determining whether the

    procedural requirements have been met which should consist only

    of

    'the straightforward

    comparison of the submitted petition with the statutory requirements for petitions' that is

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    authorized by law. (/d. at p. 421 (quoting

    lliance for a Better Downtown Millbrae

    v

    Wade

    (2003) 108 Cal.App.4th 123, 133).)

    Petitioners challenge only one section of the Ordinance, but that section explicitly

    incorporates another section, Section Five, as well as District

    Law

    section 326, subdivision (g).

    Section Four specifically provides that the amount

    of

    the Charge shal l be calculated as set forth

    in Section 5 of this ordinance. Petitioners argue both that Section Five is irrelevant and that

    Respondents fail to explain why Section Five would make the Referendum clearer to voters.

    These arguments are meritless; Section Five is relevant because it is incorporated by reference

    into Section Four. Moreover, Section Five's contents are critical to a

    voter's

    decision whether to

    sign the Petition. The amount of the Charge and the method by which the Charge is calculated

    are key pieces of information that a voter would need to determine the effect the Charge would

    have upon that voter. The same is true

    of

    District Law section 326, subdivision (g), cited in

    Section Four, both as authority for the District's ability to set penalties for nonpayment of the

    Charge, and for the authorized rate of any such penalty. At minimum, then, Petitioners were

    required to include the text of Section Five and District

    Law

    section 326, subdivision (g), both

    expressly incorporated into Section Four, to satisfy Elections Code section 9147, subdivision (b).

    Further, the court agrees that the Petition mislead voters more generally. There is no

    dispute that a portion

    of

    an ordinance can

    be

    referended. (Elec.

    Code§

    9147, subd. (b).)

    Nevertheless, where an ordinance clearly pertains to a single subject, failing to provide voters

    with the context in which the portion of the ordinance to be referended exists will often deceive

    voters. Here, the Ordinance's sole purpose was to impose the Charge. Every other section in the

    Ordinance besides Section Four provides key information which either clarifies or affects the

    Charge. The Ordinance includes 22 findings of fact, explains the District's purpose in enacting

    3

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    the Ordinance, provides a formula for calculating the Charge, establishes an administrative

    review and appeal procedure, authorizes a Citizen's Oversight Panel, and declares both an

    effective and sunset date. (Resp. Ex. 144.) All ofthis information would be integral to a voter's

    decision whether to sign a petition to referend Section Four of the Ordinance.

     

    Finally, we disagree with Respondents that material included with the petition referring

    to the Charge as a water tax violated Elections Code section 18600. That law applies when

    there are uncontested, objectively verifiable evidence ofuntruth[s].

    San Francisco Forty-

    Niners

    v

    Nishioka

    (1999) 75 Cal.App.4th 637, 649.) The question ofwhetherthe Charge is a tax

    or a charge is far from simple. t requires significant analysis; an opinion on this issue cannot

    fairly be likened to uncontested, objectively verifiable evidence ofuntruth[s]. Ibid.)

    III. The Water Supply Charge is uthorized by the Enabling Law

    Petitioners argue next that the Ordinance violates the District's enabling law, both

    because that law does not authorize the Charge, and because the Ordinance pays for projects for

    which voter approval was required but never obtained. Both inquiries require this Court to

    interpret the District's enabling law.

    The fundamental task in construing a statute is to ascertain the Legislature's intent so

    as to effectuate the purpose ofthe statute. Smith

    v

    Superior Court (2006) 39 Cal.4th 77, 83.)

    The first step in accomplishing this task is to examine the statutory language and give it a plain

    and commonsense meaning. People v Verduzco (2012) 210 Cal.App.4th 1406, 1414.) That

    reasonable and common sense interpretation must be consistent with the apparent purpose

    and intention

    of

    the Legislature. f possible, [the court] will give significance to the plain

    The issue is not, as Petitioners frame it, that Petitioners were required to inform signers of

    the impact of the Referendum, but rather, that Petitioners were prohibited from

    misleading

    signers as to the impact of the Referendum.

    4

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    meaning of every word, phrase, and sentence

    of

    a statute in pursuance of the legislative purpose,

    harmonizing the various parts

    of

    an enactment by considering each particular clause or section in

    the context of the statutory framework

    as

    a whole while considering the context, object, and

    history

    ofthe

    legislation, as well as public policy and contemporaneous construction in [an]

    attempt to arrive at a construction that

    is

    practical rather than technical in nature. [Citations.]

    In re Rochelle B

    (1996) 49 Cal.App.4th 1212, 1216.)

    f

    course, [t]he literal meaning

    ofthe

    words

    of

    a statute may be disregarded to avoid absurd results or to give effect to manifest

    purposes that, in the light

    of

    the statute's legislative history, appear from its provisions

    considered

    as

    a whole.

    Silver v Brown

    (1966)

    63

    Cal.2d 841, 845.)

    Moreover, both the statute and its statutory scheme must be construed as a whole.

    The meaning of a statute may not be determined from a single word or sentence

    Lakin v.

    Watkins Associated Industries

    (1993) 6 Cal.4th 644, 649.) [T]he words of a statute [must

    be

    construed] in context, harmoniz[ing] the various parts

    of

    an enactment by considering the

    provision at issue in the context of the statutory framework as a whole.

    Cummins, Inc. v

    Superior Court

    (2005) 36 Cal.4th 478, 487.)] Statutory interpretation requires the court

    to

    harmonize its various parts

    if

    possible, reconciling them in the manner that best carries out the

    overriding purpose of the legislation. [Citation.]

    Elsner v Uveges

    (2004) 34 Cal.4th 915, 933.)

    Additionally, statements

    of

    the intent

    of

    the enacting body contained in a preamble, while not

    conclusive, are entitled to consideration. [Citations.]

    People

    v

    Canty

    (2004) 32 Cal.4th 1266,

    1280.)

    Only when the language of a statute generates more than one reasonable interpretation

    and neither the plain language

    of

    a statute nor canons

    of

    construction resolve the matter, may the

    court look to extrinsic aids such

    as

    legislative history and public policy.

    People v. Woodhead

    5

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    (1987) 43 Cal.3d 1002, 1007, citations omitted.) Finally, if neither the plain language nor the

    legislative history reveals the meaning

    of

    the statute, the court must apply reason, practicality,

    and common sense to the language at hand with the goal of making the text

    of

    the statute

    workable and reasonable, and with consideration of the consequences flowing from a given

    statutory interpretation. ( d., citations omitted).

    A.

    The Enabling Law Authorizes the Charge

    The Legislature created the District to address what it believed to be a need for

    integrated management

    of

    water supply in the Monterey Peninsula, finding that:

    The major water supply for this area is derived from the Carmel River basin and

    the major uses lie outside that basin. The adopted central coast basin plan divides

    the management

    of

    the several basins, resulting in division, waste, and shortage

    of

    water resources The water service is principally supplied by [CAW]

    which does not have the facilities nor the ability to perform functions which are

    normally performed by public agencies, including the ability to raise sufficient

    capital for necessary public works, contract with, or provide necessary assurances

    to, federal and state agencies for financing of water projects and supplying of

    water, and the regulation

    of

    the distribution

    of

    water developed within or brought

    into such service area. (Wat. Code. Appen. § 118-2.)

    Consequently, the Legislature created the District to carry out such functions which only can be

    effectively performed by government, including, but not limited to, management and regulation

    of the use, reuse, reclamation, conservation

    of

    water and bond financing

    of

    public works

    projects.

    ( d.) ore

    generally, the District was created to serve the people

    of

    the Monterey

    Peninsula efficiently, to prevent waste or unreasonable use

    of

    water supplies, to promote the

    control and treatment of storm water and wastewater, and to conserve and foster the scenic

    values, environmental quality, and native vegetation and fish and wildlife and recreation in the

    Monterey Peninsula and the Carmel River basin

    ( d.)

    To accomplish its purposes, the District may exercise the powers which are expressly

    granted by [the enabling] law, together with such powers as are reasonably implied from such

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    express powers and necessary and proper to carry out the objects and purposes of the district.

    I

    .

    at

    §

    118-30 1.) The District is empowered to by resolution or ordinance fix and collect

    rates and charges for the providing or the availability of any service it is authorized to provide or

    make available or for the sale, lease, or other disposition ofwater or other product of its works or

    operations.

    Id.

    at § 118-308.) The District is also authorized to fix, revise, and collect rates

    and charges for the services, facilities, or water furnished by it. (/d. at § 118-326, subd. (b).)

    More generally, the District shall have the power as limited in [the enabling] law to do any and

    every lawful act necessary in order that sufficient water may be available for any present or

    future beneficial use or

    uses

    of

    the lands

    or

    inhabitants within the district

    Id.

    at

    §

    118-

    325.)

    Petitioners argue that these powers do not authorize the District to implement the Charge.

    Petitioners argue that 1) the District may only impose a charge for water or service furnished by

    it; 2) water and water service are furnished by CAW, not the District; and 3) that the District's

    services benefit CAW rather than taxpayers. None of these arguments are persuasive.

    8

    B

    The District Provides Water Service

    Petitioners repeatedly argue that the District does not supply water service because it

    does not actually deliver water, instead wholesaling water to

    CAW

    which ultimately furnishes

    8

    Petitioners also argue that that the enabling law does not authorize fees or charges to

    pay for general operating expenses. Petitioners provide no authority for this assertion. In

    fact, this claim is directly contradicted by the enabling law, which provides that the District

    shall have the power as limited in [the enabling] law to do any and every lawful act

    necessary in order that sufficient water may be available for any present

    or

    future beneficial

    use or uses of the lands or inhabitants within the district ( d.

    at§

    118-325.) In any

    event, the Charge does not fund general operating expenses. The Ordinance expressly

    provides that [p ]roceeds of the charge imposed by this Ordinance may only be used to fund

    District water supply activities. (Pet. Ex

    BX

    at P0810, italics added.)

    17

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    the water to its customers. This narrow definition

    of

    water service is not supported by relevant

    authority, however.

    In Griffith

    v.

    Pajaro Valley Water Management Agency (2013) 220 Cal.App.4th 586,

    595, the court addressed the validity

    of

    a groundwater augmentation charge imposed by the

    Pajaro Valley Water Management Agency to cover the costs

    of

    purchasing supplemental water

    and

    of

    providing supplemental water service, a service which included the planning, design,

    construction, and operation

    of

    facilities designed to provide supplemental water. The Griffith

    court affirmed this charge, finding that, the entity that produces, stores, supplies, treats, or

    distributes water necessarily provides water service. ld.)

    The District is such an entity. The mere fact that the water the District provides is

    ultimately delivered by CAW does not affect the District's status as either a supplier

    of

    water or

    as

    a water service. Indeed, the Legislature's purpose in establishing the District was to address

    the limitations of a system in which a privately owned water supplier does not have the

    facilities nor the ability to perform functions which are normally performed by public agencies

    . . (Wat. Code. Appen.

    §

    118-2.) The Legislature therefore found it necessary to create the

    District

    to

    serve these governmental functions, effecting a clear and explicit division of labor

    between CAW and the District. Ibid.)

    Moreover, the Legislature plainly intended the District to protect the continued viability

    of

    the area's water supply. Thus, the District was granted the power as limited in [the enabling]

    law to do any and every lawful act necessary in order that sufficient water may be available for

    any present or future beneficial use or uses

    of

    the lands

    or

    inhabitants within the district

    ( d. at§ 118-325.) The projects funded by the Charge are specifically intended to ensure the

    availability of sufficient water to the District inhabitants. Further, the District's powers include

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    fixing and collecting rates and charges for the providing or the availability

    of

    any service it

    is

    authorized to provide or make available or for the sale, lease, or other disposition

    of

    water or

    other product

    of

    its works or operations

    ( d.

    at§

    118-306.)

    f

    by service, the Legislature

    did not mean water service, it is difficult to imagine what service the District could possibly

    be intended to provide. Indeed, legislative history shows that [a] principal objective

    of

    the

    district would be to wholesale water supplies developed by the district to the existing private

    water purveyor. (Resp. Request for Judicial Notice, Ex.

    1

    at p. LIS

    - 5.)

    [T]he words

    of

    a statute [must be construed] in context, harmoniz[ing] the various

    parts

    of

    an enactment by considering the provision at issue in the context

    of

    the statutory

    framework as a whole.

    Cummins, Inc., supra,

    36 Ca1.4th at

    p

    487.) Statutory interpretation

    must be directed at ensuring that the overriding purpose

    of

    the legislation is carried out.

    Elsner, supra,

    34 Ca1.4th at

    p

    933, internal citation omitted.) Petitioners ' logic,

    if

    accepted,

    would violate these canons by undermining the very purpose

    of

    the District, rendering it

    incapable

    of

    achieving the very goals for which it was created. Such a construction

    of

    the

    enabling law defies legislative intent, and hence, must be rejected.

    C. The District was Not Required to Obtain Voter Approval for Projects That

    Benefit the District as a Whole

    The enabling law authorizes the District to use the revenue from any authorized rates and

    charges to pursue works and projects. The term works is defined expansively

    to

    include,

    without limitation, dams and damsites, reservoirs and reservoir sites, and all conduits and other

    facilities useful in the control, collection, conservation, storage, reclamation, treatment, disposal,

    diversion, and transmission

    of

    water, the collection, treatment, reclamation, or disposal

    of

    sewage, waste, or storm waters, and all land, property, franchises, easements, rights-of-way, and

    privileges necessary or useful to operate, maintain, repair, or replace any

    ofthe

    foregoing. ( d.

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    at § 118-14.) The term projects is not defined by the law, but it can reasonably be inferred that

    projects include, at minimum, programs to construct, operate, and maintain these works.

    The enabling law provides that the District must determine which works or projects

    to

    carry out and must determine whether a work or project is

    1

    [f]or the common benefit

    of

    the

    district as a whole; 2 [f]or the benefit ofparticipating zones ; or 3) [f]or the benefit

    of

    a single

    zone.

    ( d.

    at § 118-452.) The term zone is defined as any area designated within the district

    created in order to finance, construct, acquire, reconstruct, maintain, operate, extend, repair or

    otherwise improve any work or improvement of common benefit to such area

    The enabling law prescribes a detailed set

    of

    procedures by which certain works and

    projects may be evaluated and voted upon by the public. As to these works or projects, the

    enabling law requires the District to adopt a resolution fixing a time and place for a public

    hearing

    ( d.

    t§ 118-453), to reject works or projects that either receive a majority protest from

    affected property owners or are defeated in an election

    ( d. t§§

    118-455, 118-74), and provides

    mandatory ballot language for use in such an election.

    ( d.

    at § 118-4 73.)

    However, the above process only applies to works or projects for single zones, and joint

    works or projects for participating zones

    ( d.

    t§ 118-453.) The projects funded by

    revenue from the Charge are for the benefit

    of

    the District as a whole. (Pet. Ex. BJ at P0721,

    ~ 2 1 .

    Accordingly, Respondents argue that no voter approval was required to institute these

    projects. Respondents reason that the public hearing, protest, and voting requirements were

    intended to protect individual zones from being saddled with potentially expensive projects

    without being consulted. By contrast, as to projects that benefit the District as a whole,

    Respondents argue, the Legislature trusted the District to proceed without the need for voter

    oversight. Petitioners argue that voter intent was

    to

    require a districtwide vote on any project the

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    District sought to implement, and that the way to effectuate this intent is to consider the District

    as a whole to

    be

    a single zone, the largest possible zone within the District. Neither point has

    merit.

    9

    1. The Plain Language of the Enabling Law Provides That Elections

    are Only Required to Approve Projects That Benefit a Portion

    of

    the District Rather Than the District as a Whole

    The enabling law requires the District to determine which works or projects to carry out

    and to label each such work or project as being: 1 [f]or the common benefit ofthe district as a

    whole; 2 [f]or the benefit of participating zones ; or 3 [f]or the benefit of a single zone. Jd.

    at§

    118-452.) The very next section, however, authorizes the District's board to institute works

    or projects for single zones, and joint works or projects for participating zones, for the financing,

    construction, maintaining, operating, extending, repairing, or otherwise improving any work or

    improvement of common benefit to the zone or participating zones.

    ( d.

    at § 118-453.) Similar

    language is employed in other related sections. For example, the law provides that a work or

    project shall be terminated whenever, prior to the conclusion of the hearing, a written protest

    is filed with the board against the proposed work or project which is signed by a majority in

    number of the holders of title to real property within such zone or within any o he

    participating zones for which such work or project was initiated, or by the holders of title to a

    majority ofthe assessed valuation

    ofthe

    real property

    ( d.

    at§

    118-455, italics added.)

    9

    The resolution

    of

    this issue does not control whether the Ordinance violates the enabling

    law. Petitioners' challenge is not to the projects funded by the Charge but to the validity

    of

    the

    Ordinance itself. The Ordinance does not stand or fall on whether the projects funded by the

    revenue derived from the Charge comply with the District's enabling law. And, while ASR and

    GWR are specifically identified by the District as projects funded by the Charge, the District

    identifies other projects funded by the Charge, such as a desalinization plant, which Petitioners

    do not allege violate the enabling law. Thus, even if ASR and WR were held to violate the

    enabling law, the Ordinance itself would be unaffected. Because declaratory relief is requested,

    however, and because the validity of the projects is arguably relevant to Petitioners'

    constitutional claim, the court will address this issue.

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    Correspondingly, the election must be held in the zone or participating zones on the question

    of

    proceeding with the work or project Only registered voters

    within the zone or participating

    zones

    shall

    be

    entitled to vote at such election.

    ( d.

    at§ 118-471, italics added.) Finally, the

    ballot for any such election must ask: Shall the proposed work or project for Zones No.

    in the Monterey Peninsula Water Management District be approved?

    ( d. at§

    118-473.)

    The enabling law's provision regarding votes for emergency projects not only does not

    undermine this reading, it supports it. That provision calls for the same procedure described

    above for notifying the public and holding an election, except that the election shall be

    conducted in

    the entire portion o he district

    benefited by the emergency improvement.

    ( d.

    at

    § 118-333, italics added.) In other words, an emergency justifies forgoing the establishment

    of

    zones for a particular project or work to expedite that project or work being completed, but

    voting itself remains restricted to the portion

    of

    the district that would benefit by the

    improvement. Even in the case of an emergency, then, an election

    is

    only required when a

    project affects less than the entire District.

    In sum, the enabling

    law s

    text belies Petitioners' contention that elections are required

    for projects which benefit the entire District. And, because the enabling law is unambiguous on

    this point, it

    is

    unnecessary to look to legislative history for further guidance.

    Woodland, supra,

    225 Cal.App.4th at pp. 1007-1008.)

    11

    The District

    as

    a Whole is not a Subdivision of the District

    Petitioners also argue that the enabling law only expressly empowers the District's Board

    to institute projects for single zones or participating zones. Accordingly, Petitioners reason,

    either the law does not authorize the District to institute projects that benefit the District as a

    whole or the entire District may be considered a zone. The court is not persuaded.

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    Petitioners' argument is predicated on the conclusion that the District's power to

    implement projects is exclusively authorized by section 453

    of

    the enabling law. This is not the

    case. That authority is conferred

    by

    section 325

    of

    the enabling law, which authorizes the

    District "as limited in [the enabling] law

    to

    do any and every lawful act necessary in order that

    sufficient water may be available for any present or future beneficial use or uses of

    ( d.

    at

    § 118-325, italics added.) The purpose

    of

    section 453 is not to confer power on the District to

    institute projects, but rather, to provide specific limitations on the District's authority, which, by

    their terms, apply only to projects the District seeks to implement for the benefit of less than the

    entire District. For any such project, the District must adopt the necessary resolution, hold a

    public hearing, terminate such a project

    if

    sufficient written protest ofproperty owners is

    presented, and hold an election in the zone(s) affected by the particular work or project.

    ( d.

    at

    §§ 118-453, 118-455, 118-473, 118-474.) No such limitations apply to the District's power to

    carry out projects for the District

    as a whole;

    such projects are expressly contemplated by the

    enabling law.

    ( d.

    at

    §

    118-452.)

    Second, there is no merit to the suggestion that the entire District is a zone. The

    enabling law defines a zone as any area within the district created in order to finance, construct .

    . . or otherwise improve any work or improvement

    of

    common benefit to such area

    ( d. at

    § 118-18.) This definition plainly distinguishes the entirety ofthe District from a portion of the

    District. If the Legislature intended the District as a whole to constitute a zone, it could have

    added language such as

    or

    the entire District after within the district or omitted the within

    the district language entirely. The Legislature could also have expressly stated that projects

    benefitting the entire District were subject to the public hearing, protest, and elections procedures

    set forth in the enabling law. The enabling law does not contain such language and, indeed,

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    expressly distinguishes projects [f]or the common benefit of the district as a whole from

    projects for the benefit

    of

    less than the entire District. (Id

    118-452.)

    Further, Respondents are correct that Petitioners' interpretation would frustrate the

    District's legislative mandate for integrated management

    of

    Monterey Peninsula water supplies.

    (Id

    118-2.) The enabling law authorizes the city council of any city including territory in a

    proposed zone to exercise a veto power over such territory. (Id

    118-433.) Thus,

    ifthe

    District were a zone, any city in the District could opt-out

    of

    District-wide projects, precluding

    the District from fulfilling its legislative mandate.

    In short, adopting Petitioners' suggested construction would require this Court to read

    language into the statute which would not conform

    to

    either that statute or to the intent of the

    statutory scheme as a whole. The court declines the invitation to so revise the enabling law.

    1

    IV. The Water Supply harge Does not Violate the alifornia onstitution

    Finally, Petitioners argue that the Ordinance violates article XIII D, section 6

    subdivisions (b) and (c)

    of

    the California Constitution, passed in 1996 as Proposition 218.

    Proposition 218 was passed to plug certain perceived loopholes in Proposition 13.

    [Citations.] Specifically,

    by

    increasing assessments, fees, and charges, local governments tried

    to raise revenues without triggering the voter approval requirements in Proposition 13.

    (Silicon

    Valley Taxpayers Assn. v. Garner (2013) 216 Cal.App.4th 402, 405-406].) Proposition 218

    was designed to: constrain local governments' ability to impose assessments; place extensive

    1

    Because the court concludes that the District

    as

    a whole

    is

    not a zone, the court rejects

    Petitioners argument that reimbursement of pre-project costs with Ordinance 152 before a

    project is approved

    by

    the voters violates District Law section 118-434. That section

    concerns the conditions under which the District's board may advance general funds

    of

    the

    district to accomplish

    the purposes

    of

    zone formed in accordance with Section 431 or 476 .

    . . . ( d. at § 118-434, italics added.) Since the projects at issue concern the District as a

    whole rather than one

    or

    more zones, section 434 is inapplicable.

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    requirements on local governments charging assessments; shift the burden o demonstrating

    assessments' legality to local government; make it easier for taxpayers to win lawsuits; and limit

    the methods by which local governments exact revenue from taxpayers without their consent.

    Silicon Valley Taxpayers Ass

    n,

    Inc. v. Santa Clara County Open Space Authority

    (2008)

    44

    Cal.4th 431, 448.) Proposition 218 placed numerous restraints on the ability

    o

    public agencies

    to

    impose assessments, fees, and charges. The constitutional amendments resulting from

    passage

    o

    Proposition 218 shall

    be

    liberally construed to effectuate [Proposition 218'

    s]

    purposes

    o

    limiting local government revenue and enhancing taxpayer consent. (Jd. at p 438

    (citation omitted).)

    t

    is the District's burden to demonstrate compliance with Proposition 218.

    (Cal. Const., art. XIII D,

    §

    6, subd. (b)(5).)

    Article XIII D, subdivision (b) sets specific requirements for the imposition

    o

    a fee or

    charge. Petitioners contend that the Ordinance violates several

    o

    these provisions. Before

    addressing these substantive arguments, however, the court must address the argument that

    Petitioners' constitutional arguments are waived for failure to exhaust administrative remedies.

    A

    Petitioners' Claims are Not Barred by the Exhaustion Doctrine

    Respondents are correct that Petitioners never raised their Proposition 218 arguments

    below. Nevertheless, all

    o

    the Proposition 218 arguments at issue were both raised by

    community members and considered by the District below. (See, e.g., Pet. Ex. 91 at D980-

    D990.) There would be little to be gained by requiring the exact members

    o

    the public who

    raised Proposition 218 objections to be the same parties bringing this action. (Cf. State Water

    Resources Control Bd. Cases

    (2006) 136 Cal.App.4th 674, 791-791 (in the CEQA context, the

    exhaustion requirement is satisfied

    i

    the alleged grounds were presented by any person

    during the public comment period ) Because public, as opposed to private, concerns are

    at

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    issue, the exhaustion requirement is satisfied by the relevant issues being both raised and

    considered below.

    B. The Ordinance Satisfies the California Constitution

    The Court now turns to the substance

    of

    Petitioners' claim that the Ordinance violates

    several provisions

    of

    article XIII

    D

    subdivisions (b) and (c). The provisions invoked include:

    that revenues derived from the Charge shall not exceed the funds required to provide the

    property related service (subd. (b)(l)); that the amount of the Charge imposed on a parcel as an

    incident

    of

    property ownership shall not exceed the proportional cost

    of

    the service attributable

    to

    the parcel (subd. (b)(3)); that the Charge may only be imposed for a service actually used

    by, or immediately available to, the owner ofth property in question (subd. (b)(4)); and that no

    charge may

    be

    imposed for general governmental services where the service is available

    to

    the public at large in substantially the same manner as it is

    to

    property owners. (subd. (b)(5).)

    Finally, article XIII D, subdivision (c) requires voter approval for any property related fee or

    charge with the exception of charges imposed for sewer, water, and refuse collection services .

    . . . Petitioners contend that the Ordinance violates all of these provisions. The court will

    address each provision in turn.

    (a) Subdivision (b)(l)

    Petitioners argue that the Ordinance generates revenues which exceed the funds required

    to provide the property related service since it authorizes the use of proceeds from the Charge for

    water supply services, project capital costs, up to 15% for general unallocated administrative

    overhead, and to fund a reserve to meet the cash-flow needs of the District. (Pet. Ex.

    BX

    at

    P0810.) Petitioners argue that the fact that the charge may pay for more than

    just

    a 'service'

    indicates the charge exceeds the cost to provide that service. Additionally, Petitioners claim

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    that the reserve funded by the Charge may be used for any cash-flow need o the District because

    the Ordinance does not place any restrictions on the expenditure o these excess funds.

    Petitioners' arguments lack merit. Subdivision (b)(l) requires only that the revenues

    derived from the fee or charge not exceed the funds required to provide the property related

    service. The property related service here is water supply service. Contrary to Petitioners'

    narrow construction, water supply service is not limited to discrete events. Instead, the term

    contemplates consistent, reliable service. Hence, the funds required to provide this service

    necessarily include overhead, capital acquisition costs, and the availability o a reserve fund for

    unexpected events. The District does not generate water supply from thin air. The costs

    o

    generating that water supply necessarily include personnel costs and the facilities required to

    support that personnel. Correspondingly, capital acquisition and operational costs are direct

    costs necessary for both ASR and GWR. (Pet. Ex BX at

    P081

    0); Howard Jarvis Taxpayers

    Assn. v City ofRoseville (2002) 97 Cal.App.4th 637, 647-648) [The cost

    o

    providing a service

    includes all the required costs o providing service, short-term and long-term, including

    operation, maintenance, financial, and capital expenditures. The key is that the revenues derived

    from the fee or charge are required to provide the service, and may be used only for the

    service. ]) Similarly, maintenance

    o

    a reserve fund ensures the continued operation o the

    District's water supply projects, and hence, o water service.

    As to the reserve fund in particular, the plain language

    o

    the Ordinance refutes

    Petitioners' claim that the Ordinance does not place any restrictions on the expenditure o these

    funds. The Ordinance expressly provides that [p ]roceeds o the charge imposed by this

    Ordinance may only be used to fund District water supply activities. (Pet. Ex BX at P081 0

    italics added.) Further, Petitioners' note that the Ordinance authorizes the use o the reserve to

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    meet the cash-flow needs of the District but omit the remainder of the quote, which

    contextualizes this phrase. The full phrase reads that proceeds of the charge may be used for

    reserves to meet the cash-flow needs of the District and to otherwise provide or the cost to

    provide services

    or

    which the charge

    is

    imposed."

    ( d.,

    italics added.) No fair reading of this

    passage supports Petitioners' claim that the proposed reserve may be used for general, as

    opposed to water-supply related, purposes.

    In sum, water supply activities necessarily include the items described in Section Three

    of the Ordinance, including administrative overhead and a reserve fund. Thus, the revenue

    derived from the Charge does not exceed the funds required to provide the property related

    service, and the Ordinance satisfies subdivision (b) 1 ).

    (b) Subdivision (b )(3)

    Petitioners next argue that the amount

    ofthe

    Charge exceeds the proportional cost of the

    service attributable to each affected parcel, in violation of subdivision (b )(3). Petitioners note

    that, although the Charge does not apply to the Bishop, Hidden Hills, Ambler and Toro sub

    units, the Charge will pay for projects which benefit both the entire District and water users

    outside the district such as the City of Seaside, which will benefit by the increased water levels in

    its aquifer that SR and GWR will generate. This argument is specious. There is nothing in

    subdivision (b )(3) which prevents third parties from benefitting from projects paid for by the

    revenues derived from the Charge. That subdivision only requires that parcels that are charged

    not pay more than the cost to serve them. (Cf. Dahms v Downtown Pomona Property (2009)

    174 Cal.App.4th 708, 719.)

    Moreover, the Charge is calculated based on a hybrid fee structure which accounts both

    for the water consumption used by each affected parcel (to account for use) and by the size of the

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    meter (to account for costs which exist irrespective ofuse). (Resp. Ex. 58 at D815, Pet. Ex. BX

    at P0811-P0812.) Petitioners have failed to show that the District's calculation methodology is

    either unreasonable or inconsistent with subdivision (b)(3). And, while this formula does not

    result in an exact match between usage and the charge, such exactness is not required,

    [a]pportionment is not a determination that lends itself to precise calculation. [Citation.]

    Grifjith, supra,

    220 Cal.App.4th at p. 601.) Proposition 218 proportionality

    'is

    measured

    collectively, considering all rate payors' [Citation] ; a parcel-by-parcel proportionality

    analysis is not required. Ibid.) The Charge therefore satisfies subdivision (b)(3).

    (c) Subdivision (b)( 4)

    Petitioners further argue that the Charge violates article XIII D, section 6, subdivision

    (b)(4), which provides that [n]o fee or charge may be imposed for a service unless that service

    is actually used by, or immediately available to, the owner

    of

    the property in question. Fees or

    charges based on potential or future use of a service are not permitted Petitioners claim

    that the District has not provided any service

    t

    the parcel subject to the [Charge] and that a

    property owner has no ability to terminate the services provided in exchange for the [Charge].

    However, Petitioners fail to provide authority for the proposition that either condition is a

    prerequisite

    of

    the Charge. Instead, Petitioners repeatedly argue that the District does not supply

    water service because it does not actually deliver water, but instead, wholesales water to

    CAW, which ultimately delivers that water to consumers. As discussed,

    supra,

    the definition

    of

    water service is not as narrow as Petitioners insist. Indeed, it is even broader in the context

    of

    Proposition 218.

    Government Code section 53750, contained in the Proposition 218 Omnibus

    Implementation Act, contains definitions to be applied [f]or purposes

    of

    Article XIII C and

    9

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    Article XIII D The definition of water, i.e. any system of public improvements

    intended to provide for the production, storage, supply, treatment,

    or

    distribution of water from

    any source, applies to the District. (Govt. Code § 53750, subd. (m).)

    Thus,

    the entity that

    produces, stores, supplies, treats,

    or

    distributes water necessarily provides water service.

    Griffith, supra, 220 Cal.App.4th at p. 595.)

    The Distr ict 's projects are intended to provide supplemental water supply. The mere

    fact that the water provided is ultimately delivered by CAW does not affect the District's status

    as a water supplier. The purpose

    of

    the District was to address the limitations of CAW, a

    privately owned water supplier which does not have the facilities

    nor

    the ability to perform

    functions which are normally performed by public agencies (Wat. Code. Appen. § 118-2.)

    The Legislature plainly intended a division oflabor between

    CAW

    and the District. Ibid.) In

    light of the water problems in the Monterey Peninsula area, the development

    of

    supplemental

    water supply is especially urgent.

    Ibid.)

    In Griffith, the Pajaro Valley Water Management Agency imposed a groundwater

    augmentation charge to cover the costs of both purchasing supplemental water and providing

    supplemental water service, a service which included the planning, design, construction, and

    operation of facilities designed to provide supplemental water. Griffith, supra, 220 Cal.App.4th

    at p 595.) The Griffith court affirmed this charge, finding that the costs of purchasing,

    capturing, storing, and distribution supplemental water did not violate subdivision (b)(4).

    Since one cannot rationally purchase supplemental water without identifying and determining

    one's needs, identifying and determining future supplemental water projects is part of

    defendant's present-day water service. ( d. at p. 602.)

    30

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    ~ i m i l a r l y the District's efforts to provide supplemental water supply are aimed at

    ensuring a consistent, reliable water service for those within its jurisdiction, a task which CAW

    is incapable o accomplishing, and one which the District was expressly created to achieve.

    (Wat. Code. Appen. § 118-325.) Accordingly, the Ordinance satisfies subdivision (b)(4).

    (d) Subdivision (b )(5)

    Subdivision (b)(5) prohibits charges for general governmental services including, but

    not limited to police, fire, ambulance or library services, where the service is available to the

    public at large in substantially the same manner as it is to property owners. The Ordinance does

    not violate this subdivision. The Charge is imposed only on those who receive the water service

    funded by its revenues; sub-units not connected to the water system are explicitly excluded from

    the Charge. (Pet. Ex. BX P0810.) And, because the Charge is only imposed on [t]he owner o

    each parcel o real property connected to the main CAW water distribution system, many

    members o the public, such as owners

    o

    property not connected to that system, property

    lessees, and community visitors, are not subject to the Charge. Ibid.) In short, the services

    funded by the Charge are not general governmental services akin to police, fire, ambulance or

    library services, and accordingly, the Ordinance does not violate subdivision (b)(5).

    (e) Subdivision (c)

    Finally, subdivision (c) requires voter approval for property related fees or charges unless

    those fees or charges are for sewer, water, and refuse collection services. Here, Petitioners

    repeat the argument that water service necessarily entails the delivery or production o water.

    3

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    As explained, supra both statutory and decisional authority refutes this claim and hence, the

    District was not required to obtain voter approval to impose the Charge.

    Disposition

    Petitioners' requested relief is denied. Respondents' counsel is to prepare an

    appropriate order consistent with this ruling, present it

    to

    opposing counsel for approval as

    to

    form, and return it to this court for signature.

    Dated: March 17, 2015

    EFREN N IGLESI

    EFREN N. IGLESIA

    Judge

    o

    the Superior Court

    11

    Because the court concludes that the Ordinance does not violate either the District's

    enabling law or the state Constitution, it is unnecessary to address Respondents' laches

    argument. Nevertheless, the evidence supporting this argument is strong. A writ was

    available to Petitioners as soon as Respondents announced the decision not to place the

    Referendum on the ballot. Yet Petitioners failed to act for nine months. Respondents

    reasonably and detrimentally relied on Petitioners' failure to timely bring suit, waiting seven

    months after rejecting Petitioners ' referendum to obtain the 4 million Rabobank loan, and

    committed significant additional funds with expected charge revenue in the months

    thereafter. Even i Petitioners had been successful on the merits then, laches would bar their

    claims. (See

    San Bernardino Valley Audubon Society v City o.fMoreno Valley

    (1996)

    44

    Cal.App.4th 593, 605.) Moreover, because the Referendum Petition was improper, the

    contracts that Petitioners entered into, such as the Rabobank loan, were valid. Invalidating

    the ordinance at this late stage would abrogate these agreements, effectively eviscerating

    third parties' contract rights in violation

    o

    article

    I

    section 9

    o

    the California Constitution.

    32

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    CERTIFICATE OF MAILING

    (Code

    o

    Civil Procedure Section 1013a)

    I do hereby .certify that I am employed in the County of Monterey. I am over the age of

    eighteen years and not a party to the within stated cause. I placed true and correct

    copies of the

    Intended Decision

    for collection and mailing this date following our

    ordinary business practices. I am readily familiar with the Court s practices for collection

    and processing correspondence for mailing. On the same day that correspondence is

    placed for collection and mailing, it is deposited

    in

    the ordinary course of business with

    the United States Postal Services in Salinas, California, in a sealed envelope with

    postage fully prepaid. The names and addresses o each person to whom notice was

    mailed

    is

    as follows:

    Margaret Thurn

    PO Box 99

    Pebble Beach, CA. 93953

    David Ruderman

    11364 Pleasant Valley Rd.

    Penn Valley, CA. 95946-9000

    David Laredo

    Delay Laredo

    606 Forest Ave.

    Pacific Grove, CA.

    9395

    Date: March 17 2015

    TERESA A RISI, Clerk

    o

    the Superior Court,

    _dr t ,  < q  L/ _ _ _ ,

    Deputy Clerk