A water connection fee charged by a special district is a development fee not subject to the constraints of Proposition 218, the Third District Court of Appeal has ruled. However, a "fire suppression" assessment levied by the same district is subject to Proposition 218 and required two-thirds voter approval.
In 1994, the Shasta Community Services District, in the foothills west of Redding, approved a water service and connection fee of $2,000 for new users. The fee included a $400 fire suppression charge. In 1997, the district raised the connection fee to $3,176 based on the estimated cost of providing new capacity and the number of projected users. The district board also decided to continue levying the $400 fire suppression fee.
Subdivision developers within the district filed a lawsuit, arguing that both charges were subject to Proposition 218, the Right to Vote on Taxes Act of 1996. Shasta County Superior Court Judge Richard McEachen ruled for the district. A unanimous three-judge panel of the Third District overturned part of McEachen's ruling.
The court held that the connection fee clearly fell outside the boundaries of Proposition 218, which expressly excluded development fees. "[T]he distinguishing feature between a tax or assessment and a development fee is the voluntariness of the latter," Justice Harry Hull wrote for the court. "A property owner is not compelled to pay a development fee unless and until he or she elects to develop the property. Considered as a whole, Proposition 218 was not intended to reach such fees."
To meet the requirements of Proposition 218, the district would have to identify the parcels for which water service would ultimately be requested, and then conduct an election. But, Hull wrote, it would be impossible for the district to identify those parcels. Thus, the proposition could not apply to the connection charge.
The fire suppression fee, however, was different. The charge was an assessment for general government services, and all such fees — even existing fees — had to comply with the election mandate of Proposition 218 by July 1, 1997, the court held. The special district never conducted an election of the fire suppression fee, so it is illegal.
The Case:
Jerry Richmond v. Shasta Community Services District, No. C034239, 02 C.D.O.S. 1187, 2002 DJDAR 1427. Filed February 5, 2002.
The Lawyers:
For Richmond: Walter McNeill, (530) 222-8992.
For the district: David L. Edwards, (530) 221-0694.
The controversial formation an assessment district that includes territory outside the water district that will receive the money has been upheld by the First District Court of Appeal. The court rejected arguments that Solano County manipulated the formation and election processes to circumvent residents who objected to the county's plans.
A public agency's proposed water treatment plant is subject to local zoning and building ordinances, the Sixth District Court of Appeal has ruled. The court held that the Government Code exemption to local zoning for "facilities for the production, generation, storage or transmission of water" did not extend to a water treatment plant.
A city resolution restricting parking on certain residential streets to residents with parking permits was categorically exempt from environmental review, the Second District Court of Appeal has ruled.
An exemption to the California Environmental Quality Act for construction of a sea wall below two houses has been upheld by the Fourth District Court of Appeal. The court ruled that the potential collapse of a bluff could threaten public safety and qualified for an emergency exemption under CEQA.
In a case that touched on redevelopment law, the California Environmental Quality Act and general plan compatibility, an appellate court has upheld San Francisco's handling of a project on the site of the historic Emporium department store.
The City of Los Angeles was correct to treat as one project a builder's various proposals for 21 new houses on existing parcels on two streets, the Second District Court of Appeal has ruled. The court rejected the builder's contention that the city could not demand an environmental impact report on the 21 houses, five of which have already been built.
Opponents of a proposed recycling center were too late in filing a lawsuit regarding a city's failure to prepare an environmental study on the city's sale of land to the recycling company, the Fourth District Court of Appeal has ruled.
The owner of appropriative water rights to a creek cannot exercise those rights in violation of state regulations intended to protect fish and wildlife, the Third District Court of Appeal has decided.
When a public agency acquires a property via eminent domain, only a trial court judge -- and not a jury -- can decide whether a business should receive compensation for loss of goodwill, a state appellate court has ruled.
The California Coastal Commission's decision to allow Malibu property owners who are building new houses to exchange existing public view corridors on their property for dedication of an off-site public access to the beach has been upheld by the Second District Court of Appeal.
The City of Rancho Palos Verdes does have the authority to regulate placement of radio antennas, but the city cannot deny a use permit for an antenna solely because the antenna would be used for commercial purposes, the Second District Court of Appeal has ruled.
A doughnut shop owner who remained in his place of business for six years after the city acquired the property for redevelopment still qualified for relocation benefits as a "displaced person," the Second District Court of Appeal has ruled.