116 Cal.Rptr.2d 526
Cal.App. 1 Dist.,2002.
Jan. 31, 2002.
Court of Appeal, First
District, Division 4, California.
NOT ABOUT WATER
COMMITTEE et al., Plaintiffs and Appellants,
v.
Solano County BOARD OF
SUPERVISORS et al., Defendants and Respondents.
No. A092383.
Jan. 31, 2002.
SEPULVEDA, J.
This mandamus proceeding, brought by several owners of real property lying
north of the city of Vacaville in rural Solano County, challenges as
constitutionally flawed the formation of an assessment district and subsequent
levy of an assessment on the real property encompassed within it--including the
parcels owned by petitioners--by respondent Rural North Vacaville Water
District. Petitioners, including Not About Water Committee, an unincorporated
association, present an array of challenges to the validity of the assessment
district. First, they contend the manner in which property owners were
permitted to vote for or against the district's formation--the use of
"weighted" voting proportional to the assessment to be imposed on
each affected parcel--violates the due process clause of the Fifth Amendment to
the federal Constitution as applied to California through the Fourteenth
Amendment. Next, petitioners challenge the district's determination that their
properties would be specially benefited by the formation of the assessment
district, above and beyond the benefits common to the general public. Third,
petitioners allege the formation of the assessment district violated provisions
of the California Environmental Quality Act (CEQA) (Pub. Resources Code, §
21000 et seq.). Last, they contend asserted irregularities attending the
formation of both the antecedent water district and the assessment district
itself were so palpably unfair as to compel judicial intervention and relief.
As we explain, although cast as a suit in mandamus by petitioners, as a matter
of law, this is a special statutory action known as a validation proceeding.
The scope of our power of judicial review in such a proceeding is circumscribed
in two significant ways, one substantive, the other procedural. Substantively,
our review is limited by the principle that the formation of public improvement
districts, like the assessment district challenged here, is a legislative
act. Procedurally, our review is limited by the Legislature's determination
that legal challenges to the formation of local public improvement districts
must be heard in a single, exclusive form of action, the validation proceeding.
In combination, these two principles limit the scope of our review of
challenges to respondents' determinations that petitioners' real property will
receive a special benefit, proportional to the assessments levied, as a result
of the formation of the assessment district. We review de novo, as questions of
law, both petitioners' constitutional challenge to the use of weighted voting
in the assessment balloting and the claimed CEQA violation, and review the
petitioners' remaining contentions under the substantial evidence rule.
We conclude the use of weighted voting under these circumstances did not deny
petitioners due process of law within the meaning of the Fifth Amendment.
Moreover, the use of such a weighted balloting scheme in the assessment
district referendum was required by recently enacted provisions of the
California Constitution. We also decide the record made before the water
district board demonstrates that the assessment district will provide
petitioners with the required "special benefit"--in the form of fire
protection services--one that is not disproportional to the assessments to be
levied against their properties, and that petitioners' CEQA claim lacks merit.
Last, we conclude petitioners' claims of a civil conspiracy involving the
county board of supervisors, the water district board, members of the county
planning staff, and certain unnamed real property owners within the water
district are not supported by evidence in either of the records made before the
water district board and the superior court. We will therefore affirm the
judgment of the trial court.
FACTUAL BACKGROUND
The scene is English Hills, rolling country north of
Vacaville, lying roughly midway between Sacramento to the north and Silicon
Valley to the southwest. Petitioners tell us that location, coupled with other
factors, recently has fueled changes in the area, including the inexorable
conversion of historically agricultural lands into rural residential enclaves.
And, petitioners assert, it has long been understood by area residents that
this process of land use conversion might proceed even more implacably if a
shortage of potable water, a condition endemic to much but not all of the area,
could be overcome by a modern water delivery system. Beginning some 13 years
ago, in 1989, county officials and interested residents with parcels adjacent
to English Hills began to explore the possibility of building such a system
through the agency of a water district. Following a series of public meetings
and an engineering study, the formation of such a water district was endorsed
by the county board of supervisors and presented to area residents at a
referendum conducted on June 25, 1996.
The record before us shows that the outline of the water district, as
configured by civil engineers retained by the county, follows a somewhat crazy-
quilt pattern, excluding from its perimeter those parcels with water wells, an
exclusion explained in an engineer's report and by the board as being prompted
by the recognition that, since these parcels did not need a water delivery
system, they would not be assessed for the cost of one. Not being impacted by
the project's cost, these "water well owners" were not provided with
ballots for the referendum on the formation of the proposed water district. In
due course, such a referendum on the fate of the proposed water district was
conducted by the county, with each owner of real property lying within the
proposed district having one vote, that is, under a one-parcel, one-vote or per
capita balloting scheme. As certified by the board, the pro-water district
forces won the referendum handily: Formation of the water district was approved
by a vote of 285 to 40.
The formation of a water district--denominated the Rural North Vacaville Water
District (RNVWD)--having been approved by a majority of the included landowners
and established by supervisorial resolutions, county officials next had to
determine the scope of the contemplated water system and a means of financing
its construction. Over the next two to three years, following another series of
engineering studies and public hearings, the board voted unanimously to
establish a "benefit assessment district," comprised of two zones, to
fund construction of a water delivery system. Zone one consisted of those
properties lying within the RNVWD formed following the 1996 referendum.
Lots within zone one would receive water hookups at a per parcel connection
cost of approximately $20,000; a second zone, zone two, was comprised of all
those parcels lying in zone one and those parcels (some 233 of them)
lying outside the water district. These latter parcels were included
within the proposed assessment district under statutes authorizing such
"extraterritorial" reach under specified circumstances. A subclass of
zone two parcels, composed of those property owners with land outside the
original water district boundaries, would receive fire protection services from
the assessment district, at an average parcel cost of about $2,400.
Unlike the per capita balloting scheme employed at the antecedent water
district referendum, balloting on the formation of the proposed assessment
district was by weighted vote, that is, votes were allotted in
proportion to the financial obligations to be imposed on landowners within the
proposed assessment district, assuming it passed. As a result of this wrinkle,
zone one residents exercised, on average, on the order of eight times the
voting power of that subclass of zone two residents who stood to gain only fire
protection services if formation of the assessment district was approved. [FN1]
It is clear from the record that the idea of forming an assessment district--
particularly one with extraterritorial reach beyond the perimeter of the water
district--met with immediate and active opposition from some area residents.
For the most part, it appears from the record, these opponents were comprised
of residents whose property lay outside the perimeter of the existing water
district and who had adequate water supplies from wells on their parcels. These
owners were, of course, roughly the same group of water well owners who,
because their parcels were not included in the original water district, had not
been provided ballots in the 1996 referendum. As the day for balloting on the
proposed assessment district approached, opposition leaders-- for convenience,
we will refer to them as the English Hills owners [FN2]-- circulated a
petition, signed by more than 50 residents, calling on the board to delay the
assessment district referendum.
FN1. Or, as respondents put it
in their brief, a property owner with a water connection for domestic water at
a cost of $18,404 and fire suppression water at a cost of $2,880, would have
almost eight times the weight of the vote of a property owner outside the water
district having only a fire suppression water assessment of $2,880.
FN2. We use the term English
Hills as shorthand for a cluster of small areas lying within the assessment
district, including Steiger Hills, Gibson Canyon, and Browns Valley, in all of
which, it appears, some parcels have active water wells.
Because the petition conveys the sentiment among this rump group, we quote part
of it: "We the undersigned hereby petition the Rural North Vacaville Water
District to delay the upcoming vote and re-evaluate the Fire Protection portion
of the proposed district. .... We ... believe there has been a concerted effort
to include as many parcels into the district as possible via the strategic
location of 'fire hydrants.' This is especially disconcerting as we feel there
is at least a moral, if not legal, obligation to leave all parcels out of the
district who want to stay out as was promised during the district formation
vote in 1996.... Those of us left out of the vote were told we would be left
out of the district...." District officials declined to postpone the
voting, the referendum went forward as planned, and the proposed assessment
district carried the day by a vote of 79.1 percent to 20.9 percent.
The upshot of these machinations, petitioners assert, has been to give a
minority of property owners--those with parcels lying within the water
district--substantially greater voting power than those residing outside water
district boundaries. In response to these events, petitioners, as dissident
water well owners, filed this suit in mandate, asserting the voting scheme
employed by the water district in the assessment referendum denied them due
process of law under the Fifth Amendment to the federal Constitution and was,
moreover, the product of a civil conspiracy among members of the county board
of supervisors, the county planning commission, the water district, and a
handful of local residents. Defending, the county relied on federal judicial
precedents upholding weighted voting under comparable circumstances against
Fifth Amendment challenge. Moreover, the county argued, voter approval of
Proposition 218, amending article XIII of the California Constitution in 1996,
required the use of a weighted voting scheme, proportional to the contemplated
financial impact of the assessment. Following a hearing, the superior court
granted judgment for the county and water district. This appeal by the
petitioning property owners was timely perfected.
ANALYSIS
I.
INTRODUCTION.
Before assessing the legal and
evidential merit of their claims, a description of the case for relief
petitioners attempt to make out on this appeal will prove useful. In substance,
the petitioning property owners allege the existence of a lengthy conspiracy
among county planning officials, members of the county's board of supervisors,
and owners of real property lying within the original 1996 water district. The
ultimate object of this scheme, petitioners assert, was to further the
northward "rural residential" expansion of development in Solano
County and, as a byproduct of that process, enrich property owners and swell the
county's tax base. Aware of substantial opposition among property owners in the
rural English Hills area to suburbanizing trends, petitioners allege
respondents conspired with others to neutralize the voting strength of the
water district opposition by employing a two-step process.
First, county officials gerrymandered the configuration of the proposed water
district in a manner that would exclude those property owners with water wells
on their parcels. Not needing a reliable water
delivery service, some of these residents--a majority, had they been
furnished ballots, according to petitioners--were not likely to support the
creation of a water district, or so petitioners' argument runs. And, being
excluded, these outlying residents were not provided ballots for the water
district referendum. The proposal to form a water district, the balloting for
which was controlled by the exclusion of those likely to be opposed to it,
having won by a substantial margin, respondents allegedly then took the second
step in their scheme to neutralize opposition, petitioners assert.
This step, according to petitioners, consisted of the proposed formation of a
beneficial assessment district to finance construction and operation of the
water district's delivery system, an assessment district with extraterritorial
reach, that is, one encompassing not only the water district, but adjacent
areas outside its boundaries, the residents of which would receive fire
protection services from the water district. Moreover, petitioners allege, in
order to insure the success of the proposed assessment district, county
officials allocated votes to affected property owners according to a weighted
system, that is, voting power was proportional to the contemplated financial
impact on the property owner in the event formation of the assessment district
was approved. The effect of this maneuver, according to petitioners, was to
give those parcel owners residing within the perimeter of the water district a
multiple of the voting power given those owners residing in the
extraterritorial area of the proposed assessment district. And, petitioners
add, had the principle of one person, one vote been adhered to, the
anti-assessment district forces would have defeated the formation proposal. As
events unfolded, respondents successfully implemented the alleged scheme:
Formation of the proposed beneficial assessment district was approved by
affected property owners by a vote--expressed in terms of the proposed
financial impact of the assessment district--of $6,951,764 "for" to
$1,839,809 "against."
In sum, as petitioners put their case in the opening brief, "Respondents
... have combined to impose an assessment of [petitioners'] properties for 15%
of the cost of Water District's proposed $10.5 million water system after
deliberately excluding [them] from the vote for the [water] District's creation
and thereafter setting up a weighted voting system for assessing [petitioners']
properties outside the District under which [petitioners'] negative
votes could not possibly prevail." (Italics added.)
II.
AN OVERVIEW: FINANCING MUNICIPAL IMPROVEMENTS THROUGH BENEFICIAL
ASSESSMENT
DISTRICTS, THE EVENTS LEADING TO THE FORMATION OF ASSESSMENT
DISTRICT
NO. 1, AND THE STANDARD OF JUDICIAL REVIEW.
We digress to provide a summary of the law governing the use
of assessment and similar districts to finance municipal improvements in
California, to give an account of events leading up to the formation of the
assessment district challenged by petitioners, and to identify the applicable
standard of judicial review. The use of the special or beneficial assessment
district as a device for financing the cost of public improvements has a long
pedigree in the history of public finance in the United States. (See, e.g., 14
McQuillin, The Law of Municipal Corporations (3d rev. ed.1998 rev.) Special
Taxation and Local Assessments §§ 38.01-38.338.) As one law review article on
the use of benefit assessment districts has noted, in the nineteenth century,
"local jurisdictions levied benefit assessments on property owners to
finance street improvements abutting the owners' property. Although the
community at large benefited from street improvements in the city, those
property owners along the new or improved streets received special benefits
that enhanced their property values and thus justified payment of benefit
assessments.... As the need for public improvements at the local level
increased, local governments expanded the application of benefit assessments to
other types of improvements." (Comment, New Financing Strategy for
Rapid Transit: Model Legislation Authorizing the Use of Benefit Assessments to
Fund the Los Angeles Metro Rail (1988) 35 UCLA L.Rev. 519, 524-525, fns.
omitted.)
Our high court has said of the assessment device that it is "[a]nalogous
to but differing in important respects from the power of taxation, the
essential feature of the special assessment is that the public improvement
financed through it confers a special benefit on the property assessed beyond
that conferred generally." (Southern Cal. Rapid Transit Dist. v. Bolen
(1992) 1 Cal.4th 654, 661, 3 Cal.Rptr.2d 843, 822 P.2d 875 (Bolen ).)
Elsewhere, the court has described such districts as a " '
"compulsory charge placed by the state upon real property within a
pre-determined district, made under express legislative authority for defraying
in whole or in part the expense of a public improvement therein...." '
" (San Marcos Water Dist. v. San Marcos Unified School Dist. (1986)
42 Cal.3d 154, 161, 228 Cal.Rptr. 47, 720 P.2d 935.)
Following voter approval and formation of the RNVWD, the district's board took
steps to form a beneficial assessment district under the provisions of the
Municipal Improvement Act of 1913, for the purpose of financing construction of
a water delivery system. (Sts. & Hy.Code, § 10000 et seq., (the 1913 Act).)
In line with the procedural mechanics required under the 1913 Act, the
district's board began the formation process in June 1999, certifying the final
environmental impact report for the water system project, adopting a resolution
of intention to form assessment district No. 1 (see Sts. & Hy.Code, §
10200), and referring the matter to a civil engineering firm engaged for
preparation of the required engineer's report. (Id., §§ 10203 & 10204.)
Also in June 1999, the district filed a notice of determination for its water
project as required by CEQA. After submission and review of the engineer's
report, the board designated October 12, 1999, as the date for protests on the
proposed assessment district and mailed ballots to the owners of record of
property within the proposed district.
In the interim, the Solano County Board of Supervisors approved the water
district's proposal to levy extraterritorial assessments, an act required by
sections 10103 and 10104 of the Streets and Highways Code. On October 12, 1999,
a protest hearing was held before the water district board. Ballots were
weighted and tabulated by the amount of the proposed assessment to be imposed
on the parcel for which the ballot was submitted. Under this weighted scheme,
the votes cast in favor of the formation of the proposed assessment district
No. 1 totaled 79 percent of the total votes cast. At the conclusion of the
protest hearing, the district board adopted two resolutions, one declaring the
assessment ballot results, and the other confirming and levying the
assessments. (See Sts. & Hy.Code, § 10312.) Petitioners filed this action
in mandamus on November 10, 1999, attacking the two resolutions adopted by the
district board at the conclusion of the October 12 protest hearing. (Id., §
10400 [30 day limitations statute].)
As noted, judicial review of challenges to public improvement determinations
made by a local governmental agency is circumscribed both by the legislative
character of such municipal proceedings and the exclusivity of a special
statutory proceeding--codified as Code of Civil Procedure sections 860 et
seq.--as the sole procedure available "to determine [its] validity."
(Code Civ. Proc., § 863.) The limitations on the scope of judicial review of
such determinations was discussed by the California Supreme Court in Dawson
v. Town of Los Altos Hills (1976) 16 Cal.3d 676, 129 Cal.Rptr. 97, 547 P.2d
1377 (Dawson ). The Town of Los Altos Hills formed an assessment
district for sanitation purposes and imposed assessments on the real property
lying within it. Some landowners within the district sued for injunctive relief
on the ground that the resolutions adopted by the town in connection with the
formation of the district were tainted by fraud and thus void. Characterizing
the plaintiffs' proceeding, the Supreme Court said that its "essential
object ... is a declaration that the [assessment] district ... is without legal
existence, and that all obligations and duties arising as a result of its
formation are likewise of no legal effect. It is therefore an 'action or
proceeding' contesting 'the validity of an assessment' [citations] and as such
differs in no essential respect from other civil actions or special proceedings
brought to test the validity of a special assessment. [FN3]" (Id.
at p. 682, 129 Cal.Rptr. 97, 547 P.2d 1377.) The court's opinion continues:
FN3. [Citations.]
"The standard of judicial review which is applicable in such proceedings
flows from the nature of the action being reviewed. A special assessment
district ... is not a legal entity with officers and corporate rights and
duties. Rather such a district, in the words of the Municipal Improvement Act
of 1913 ... is merely 'the district of land to be benefited by the improvement
and to be specially assessed to pay the costs and expenses of the improvement
and the damages caused by the improvement.' [Citation.].... [¶] As is manifest
from this brief review, the establishment of a special assessment district
takes place as a result of a peculiarly legislative process grounded in the
taxing power of the sovereign. This was clearly recognized in early decisions
of this court.... [Citations.] The scope of judicial review of such actions is
accordingly quite narrow.... '[T]he court will not declare the assessment void
unless it can plainly see from the face of the record, or from facts judicially
known, that the assessment ... is not proportional to the benefits, or that no
benefits could accrue to the property assessed.' [Citations.]" (Dawson,
supra, 16 Cal.3d 676 at pp. 682-684, 129 Cal.Rptr. 97, 547 P.2d 1377, fn.
omitted.)
The continuing vitality of Dawson, supra, 16 Cal.3d 676, 129 Cal.Rptr.
97, 547 P.2d 1377, and the limitations announced therein governing judicial
review of the formation of public improvement districts were reaffirmed by the
California Supreme Court in Knox v. City of Orland (1992) 4 Cal.4th 132,
14 Cal.Rptr.2d 159, 841 P.2d 144 (Knox ). There, our high court
expressly rejected a request that it "reevaluate the standard of review
announced in Dawson " in light of subsequent decisions. (Id.
at p. 146, 14 Cal.Rptr.2d 159, 841 P.2d 144.) It declined to do so. "We
are not persuaded," the Knox court wrote, "to deviate from the
traditional standard of review which we reaffirmed in Dawson ...."
(Id. at p. 147, 14 Cal.Rptr.2d 159, 841 P.2d 144.) Applying the Dawson
standard of review to the record before it, the court concluded that
"[b]ased on this record, we see no basis for invalidating the city's
determination of benefit under Dawson .... The record contains no
evidence contradicting the city's benefit determination, and no facts that
otherwise tend to show nonproportionality or absence of benefit to the assessed
properties." (Id. at p. 148, 14 Cal.Rptr.2d 159, 841 P.2d 144.)
"Under Dawson," the Knox court concluded, "the
city's determination of benefit, as set forth in its resolution approving the
engineer's report, must be deemed conclusive in the absence of any
contradictory evidence in the record." (Id. at p. 149, 14
Cal.Rptr.2d 159, 841 P.2d 144, fn. omitted.)
Notwithstanding Knox, supra, 4
Cal.4th 132, 14 Cal.Rptr.2d 159, 841 P.2d 144, recent events appear to have
worked a modification of the Dawson/ Knox standard of review. As noted ante,
at page 530, California voters approved the adoption of Proposition 218 at the
general election held on November 5, 1996. Among other changes, Proposition
218, now codified as articles III C and III D of the California Constitution,
provides that "[i]n any legal action contesting the validity of any
assessment, the burden shall be on the agency to demonstrate that the property
or properties in question receive a special benefit over and above the benefits
conferred on the public at large." (Cal. Const., art. XIII D, § 4, subd. (f).)
We are thus required by this provision, and its modification in the allocation
of the burden of proving a special benefit, to restate the standard announced
in Dawson, supra, 16 Cal.3d at pages 683-684, 129 Cal.Rptr. 97, 547 P.2d
1377, and reaffirmed by the court in Knox, supra, 4 Cal.4th 132, 14
Cal.Rptr.2d 159, 841 P.2d 144. We do so by adopting the following amended
formulation (new material in brackets): A court "will not declare the
assessment void unless it can plainly see from the face of the record, or from
facts judicially known, [that the agency has failed to discharge its burden of
proving that] the assessment ... is not proportional to the benefits, or that
no benefits could accrue to the property assessed."
III.
APPLICATION
OF THE GOVERNING STANDARD TO THE RECORD IN THIS CASE.
Applying that modified standard to the record here, we
conclude the water district has met its burden of proof. Although it bears the
burden of proving the existence of a special benefit, we agree with the water
district that the legislative character of assessment proceedings continues to
impose restraints on the scope of judicial review of such proceedings.
Specifically, we conclude that case law decided prior to passage of Proposition
218, under which legislative-like determinations by public improvement agencies
are reviewed under an abuse of discretion standard, continues to apply in the
post- Proposition 218 legal environment. We think this follows from the
recognition that such a standard is implicit in the Dawson/Knox scope of
review discussed above. From the inception of the use of such entities as a
means of financing public improvements, California courts, recognizing the
imperfect and sometimes inherently imprecise nature of legislative
determinations, have granted improvement agencies latitude in making them. That
latitude, implicit in the Dawson formulation, and the reasons supporting
it, are "instinct" with discretion, to borrow Justice Cardozo's word.
(Wood v. Duff-Gordon (1917) 222 N.Y. 88, 91, 118 N.E. 214.)
In its discussion of the origin and nature of the limited judicial review
applicable to assessment issues, the Dawson court observed that such
districts are established "as a result of a peculiarly legislative process
**535 grounded in the taxing
power of the sovereign." (Id. at p. 683, 129 Cal.Rptr. 97, 547 P.2d
1377.) The court went on to say that the " 'board of supervisors is the
ultimate authority which is empowered to finally determine what lands are
benefited and what amount of benefits shall be assessed against the several
parcels benefited.... This determination is made after a full hearing accorded
to all persons interested to make such objection as they see fit.' " (Id.
at p. 684, 129 Cal.Rptr. 97, 547 P.2d 1377.) It was in light of these observations
that the Dawson court endorsed a standard of judicial review under which
courts "will not declare the assessment void unless it can plainly see
from the face of the record, or from facts judicially known, that the
assessment so finally confirmed is not proportional to the benefits, or that no
benefits could accrue to the property assessed." (Ibid., italics
added.)
Although we conclude the italicized portion of the Dawson standard
quoted above has since been altered by enactment of section 4, subdivision (e)
of article XIII D of the state constitution, we think there are sound reasons
to continue to apply the remainder of the Dawson formulation. The
legislative character of such determinations has not been altered by passage of
Proposition 218 and we think that, in examining the record to determine if the
agency has met the burden of proof imposed by section 4, subdivision (e),
courts ought to do so with an awareness of that "peculiarly legislative
process." (Dawson, supra, 16 Cal.3d at p. 683, 129 Cal.Rptr. 97,
547 P.2d 1377.)
That said, we look to the record made
before the water district to determine if it met its burden of proving the
existence of a special benefit flowing to petitioners' properties by the
formation of assessment district No. 1. A newsletter prepared by the water
district for distribution to its customers and made a part of the
administrative record, identifies some of these special benefits, including (1)
potential increases in property values from the presence of a reliable public
water supply for fire suppression
purposes; (2) a potential reduction in fire insurance rates from the
positioning of fire hydrants; and (3) not least, enhanced security and safety
from the ability to suppress building, grass, and brush fires.
A public information packet developed by the water district describes
additional special fire protection benefits flowing to assessment district
residents. These include the assessment district's location "in one of the
most sensitive fire-prone areas in the [county]. Much of the terrain is steep,
there is an abundance of brush and grass, plus many homes and related
structures. In addition, the potential for devastating, fast-moving fires such
as have occurred in the past is an ever-present danger." The past fire history
of the area, the report continued, made the provision of a fire protection
system as part of the water district necessary to provide "a reliable
water supply for fire protection throughout the district ... benefit[ing]
homeowners and ... reduc[ing] the turn around time necessary to resupply water
for the fire district's water tenders during fire emergencies."
The report goes on to note the current fire suppression practice, using water
tenders to truck water to fire sites and noting that "once the imported
supply of water is exhausted, each engine or water tender must leave the fire
and go to the closest reliable water source (such as the industrial park in the
area of Midway Road or the SID fill at Pamela Lane and Gibson Canyon), refill,
and return to the scene of the fire. This length of time is estimated to be at
least 45 minutes. In this length of time, a fire can easily spread from one
location to another, increasing the potential loss of more homes and property.
The value of having strategically placed hydrants throughout the district with
a fixed, reliable water supply close to road easements improves the district's
ability to suppress fires more quickly, and limits the number of units needed
to suppress grassland or structure fires."
And, in answer to this question, put by a theoretical water well
owner--"There are several property owners that have 2000 gallon water
storage tanks and would therefore derive no benefit from a fire hydrant. Why is
this not being taken into consideration?"--the district's information
packet answered: "There are a number of properties that have on-site water
storage tanks for fire protection purposes, which the property owner is
responsible for maintaining. The fire district cannot rely on these water
storage tanks as a definitive source of water since in some cases the onsite
tanks have not been maintained or kept supplied with water. The fire protection
system of fire hydrants is designed to provide the fire district with a
reliable supply of water and a volume
greater than that which can be supplied by individual property owner onsite
storage tanks." [FN4]
FN4. For the historical record,
we quote one additional question-and- answer in the district's handout:
"What was the damage caused by the fires in the English Hills area during
the fire storms known as 'black Sunday' and 'black Tuesday'? [¶] The fires of
the 60's were devastating but the Black Thursday fire was the worst in the area
in many years. The Black Thursday fire started on September 16, 1965 at
approximately 12:30 p.m., in the north English Hills area. The fire was blown
by winds at 50 to 60 mph and a temperature of 92 degrees. The Fire loss
included 15 homes, 45 other structures and numerous losses of livestock. The
Fire was contained at East Monte Vista Avenue and burned approximately 8,500
acres. Mutual Aid was requested immediately with 100 pieces of equipment and
over 200 to 300 firefighters on the fire lines."
While we might go on with excerpts from the record made before the water
district, we think the evidence summarized above is sufficient to discharge the
district's burden of proof to show the existence of a special benefit, beyond
that conferred on the general public.
IV.
CONSTITUTIONALITY
OF WEIGHTED VOTING UNDER THE DUE PROCESS CLAUSE OF THE FIFTH
AMENDMENT.
As noted, petitioners' central constitutional challenge to
the formation of the assessment district at issue in this suit rests on the due
process clause of the Fifth Amendment. Specifically, they contend the
district's use of a weighted voting scheme, with its substantial dilutive
effect on the voting power of petitioners, offends the constitutional
requirement of "one man, one vote" announced in the landmark federal
decisions of Reynolds v. Sims (1964) 377 U.S. 533, 84 S.Ct. 1362, 12
L.Ed.2d 506, and Baker v. Carr (1962) 369 U.S. 186, 82 S.Ct. 691, 7
L.Ed.2d 663. [FN5] As respondents point out, however, established exceptions to
the principle of one person, one vote have been long recognized by the United
States Supreme Court and by our own high court. The California Supreme Court
canvassed these precedents and the doctrinal exception that has emerged from
them in the Bolen case.
FN5. Although petitioners'
briefing raises the claim that the asserted gerrymandering of the antecedent
water district boundaries to exclude them from participating in the voting
violated constitutional due process requirements, no legal authority is cited
in support of that proposition; in light of the omission, we conclude
petitioners have abandoned that contention.
The Bolen litigation arose out of the formation of assessment districts
at the locations of rapid transit passenger stations in the Los Angeles area in
connection with the construction of that city's Metro Rail system. In an effort
to capture some of the "windfall" appreciation of commercial property
surrounding such stations, the transit authority embarked on a program of
forming beneficial assessment districts at major Metro Rail stations. (Bolen,
supra, 1 Cal.4th 654 at pp. 661-662, 3 Cal.Rptr.2d 843, 822 P.2d 875.) The
assessment program was challenged by interveners in a validation proceeding,
chiefly on the ground that the voting scheme employed in referenda on the
proposed assessments districts--under which voting was limited to owners of
commercial property subject to assessment in the event of approval--violated
the equal protection clause of the Fourteenth Amendment. Reversing the Court of
Appeal invalidation of the voting scheme, the California Supreme Court, in a
five-to-two decision, upheld the property-based qualification to vote. (Id.
at p. 659, 3 Cal.Rptr.2d 843, 822 P.2d 875.)
As the court's Bolen opinion points out, the solution to the
constitutional problem presented by statutory classifications that discriminate
among voters lies in a handful of United States Supreme Court cases decided in
the wake of Reynolds v. Sims, supra, 377 U.S. 533, 84 S.Ct. 1362, 12
L.Ed.2d 506. (Bolen, supra, 1 Cal.4th at p. 665, 3 Cal.Rptr.2d 843, 822
P.2d 875.) Prominent among these is Avery v. Midland County (1968) 390
U.S. 474, 88 S.Ct. 1114, 20 L.Ed.2d 45, where the court ruled that the right
protected by Reynolds--equality at the ballot box--"is not
fundamental under limited circumstances. As the court formulated the exception
in Avery, ... these circumstances consist of 'a special-purpose unit of
government assigned the performance of functions affecting definable groups of
constituents more than other[s]....' " (Bolen, supra, 1 Cal.4th at
p. 665, 3 Cal.Rptr.2d 843, 822 P.2d 875, fn. omitted, quoting Avery, supra,
390 U.S. at pp. 483-484, 88 S.Ct. 1114.) Where the prescribed conditions occur,
according to the Bolen court, "the strict demands of Reynolds,
supra, 377 U.S. 533, 84 S.Ct. 1362, 12 L.Ed.2d 506, do not apply and voting
power 'may be apportioned in ways which give greater influence to the citizens
most affected by the organization's functions' ... without violating the
guarantee of equal protection provided ... the resulting classification is
reasonably related to the statutory objective." (Bolen, supra, 1
Cal.4th at p. 665, 3 Cal.Rptr.2d 843, 822 P.2d 875, quoting Avery, supra,
390 U.S. at p. 484, 88 S.Ct. 1114.)
Applying these constitutional criteria to the circumstances before it in the Bolen
case, the high court wrote that the Metro Rail benefit districts at issue
"are not invested with and do not exercise powers remotely similar to the
'general governmental powers' to which the principle of Reynolds, supra,
377 U.S. 533, 84 S.Ct. 1362, 12 L.Ed.2d 506, presumptively applies." (Bolen,
supra, 1 Cal.4th at p. 669, 3 Cal.Rptr.2d 843, 822 P.2d 875.) The court
went on to describe the characteristics of the Metro Rail benefit districts,
using language aptly descriptive of assessment district No. 1: "the
benefit assessment districts lack virtually any of the incidents of government.
In fact, they are little more than formalistic, geographically defined
perimeters whose raison d'ętre is to serve as the conceptual medium for
the recognition of economic benefits conferred and the imposition of a
corresponding fiscal burden." (Ibid.) Tellingly, the Bolen
opinion cites as authority for this last proposition language from the high
court's opinion in Dawson, supra, 16 Cal.3d at p. 683, 129 Cal.Rptr. 97,
547 P.2d 1377, where the court, writing of the special assessment district at
issue there, said it "is not a legal entity with officers and corporate
rights and duties. Rather, such a district, in the words of the Municipal
Improvement Act of 1913 (under which the Town council here proceeded), is
merely 'the district of land to be benefited by the improvement and to be
specially assessed to pay the costs and expenses of the improvement and the
damages caused by the improvement. [Citation.]' " (Dawson, supra,
16 Cal.3d at p. 683, 129 Cal.Rptr. 97, 547 P.2d 1377.)
We think this case authority--from Avery, supra, 390 U.S. 474, 88 S.Ct.
1114, 20 L.Ed.2d 45, through Dawson, supra, 16 Cal.3d 676, 129 Cal.Rptr.
97, 547 P.2d 1377, to Bolen, supra, 1 Cal.4th 654, 3 Cal.Rptr.2d 843,
822 P.2d 875--is sufficiently on point to make it clear that a special benefit
assessment district having the characteristics of assessment district No. 1 is
not in any meaningful sense a "governmental" entity. The term refers
instead to a " 'district of land to be benefited' " (Dawson,
supra, 16 Cal.3d at p. 683, 129 Cal.Rptr. 97, 547 P.2d 1377), or to
"geographically defined perimeters [which] ... serve as the conceptual
medium for the recognition of economic benefits." (Bolen, supra, 1
Cal.4th at p. 669, 3 Cal.Rptr.2d 843, 822 P.2d 875.) Like the benefit
assessment districts at issue in Bolen, supra, 1 Cal.4th 654, 3
Cal.Rptr.2d 843, 822 P.2d 875, the "organizing principle" behind the
limited-purpose assessment district No. 1 is "the recoupment" of some
of the additional economic value (and the associated costs) conferred on real
property by the establishment of water delivery and fire protection services.
Thus, to paraphrase Bolen, the narrow purpose for which the district was
established "is reflected in the voting scheme that limits the franchise to
those who will directly and primarily enjoy the benefits ... and shoulder the
reciprocal burden of assessments"--owners of real property lying within
the assessment district. Like the Bolen court, "we are satisfied
that the governmental unit[ ] at issue lack[s] the indicia of 'general
governmental powers' and ... qualif[ies] as the sort of 'special- purpose unit[
] of government' that [is] not subject to the strict requirements of Reynolds,
supra, 377 U.S. 533, 84 S.Ct. 1362, 12 L.Ed.2d 506." (Bolen, supra,
1 Cal.4th at p. 670, 3 Cal.Rptr.2d 843, 822 P.2d 875.)
Our final inquiry under this heading is the determination whether
discrimination among those enfranchised in terms of voting power--that
is, the use of a weighted system of voting proportional to the financial impact
of the assessments to be imposed--violates constitutional requirements. The
high court precedents relied on by the Bolen court point the way to the
answer. The decisive result to be drawn from the conclusion that the strictures
of Reynolds v. Sims, supra, 377 U.S. 533, 84 S.Ct. 1362, 12 L.Ed.2d 506,
do not apply in these circumstances is that the governing constitutional test
becomes whether the allocation of voting power in a manner that is proportional
to the financial impact of the assessment is not " 'wholly irrelevant to
achievement of the [provision's] objectives.' " (Salyer Land Co. v.
Tulare Water District (1973) 410 U.S. 719, 730, 93 S.Ct. 1224, 35 L.Ed.2d
659 (Salyer ), quoting Kotch
v. River Port Pilot Comm'rs (1947) 330 U.S. 552, 556, 67 S.Ct. 910, 91
L.Ed. 1093.) That is, absent the application of the Reynolds standard,
the controlling test is the constitutional "rational basis" standard.
(Salyer, supra, at p. 732, 93 S.Ct. 1224 ["in the type of special
district we now have before us, the question ... is not whether ... we would
have lumped [all potential voters] together had we been enacting the statute in
question, but instead whether 'if any state of facts reasonably may be
conceived to justify' California's decision to deny the franchise to lessees
while granting it to landowners."].)
That lenient standard is met here for reasons that are obvious. To quote the
court's opinion in Ball v. James (1981) 451 U.S. 355, 101 S.Ct. 1811, 68
L.Ed.2d 150, relying on Salyer, supra, 410 U.S. 719, 93 S.Ct. 1224, 35
L.Ed.2d 659, in upholding a weighted balloting scheme tying voting power to
acreage ownership, the state "could rationally make the weight of ...
vote[s] dependent upon the number of acres ... own[ed], since that number reasonably
reflects the relative risks ... incurred as landowners and the distribution of
the benefits and the burdens of the District's water operations." (Ball,
supra, 451 U.S. at p. 371, 101 S.Ct. 1811.) A like analysis applies here.
It is not irrational to allocate voting power in a special district referendum
in proportion to the financial impact of the assessments to be imposed. Such an
allotment scheme reasonably reflects the benefits and burdens to property
owners of the district's operation. Moreover, application of the per capita
voting scheme--the "one person, one vote" formula petitioners contend
is required by the Fifth Amendment--in these circumstances, would have produced
an anomalous disproportionality under which, for example, a property owner
assessed for fire protection services in the sum of approximately $3,000 would
exercise the same voting power as a property owner assessed approximately
$20,000 for multiple water service and fire suppression services. Given the
substantial disproportionality in benefits conferred and burdens imposed on
these two classes, it is hardly irrational to adopt a weighted voting scheme.
V.
Weighted voting under articles XIII C and XIII D of the California
Constitution.
As we have seen, because the use of voting tied proportionally to
property ownership or comparable economic factors passes federal constitutional
muster under limited circumstances, it follows that the Fourteenth Amendment is
not an impediment to the voting scheme employed by district officials in the formation
of assessment district No. 1. It follows as well that no objection to such a
scheme is imposed by the California Constitution. But this is so, not
because of the effect of state constitutional
provisions comparable to the Fifth Amendment; rather, it follows from
the fact that the state's voters approved Proposition 218 at the general
election of November 1996. That provision, now codified as articles XIII C and
XIII D of the California Constitution, requires, as a matter of state
constitutional law, the use of weighted voting schemes in all referenda on
proposed assessments, defined to include "special assessments" and
"benefit assessment," among others. (Cal. Const., art. XIII D, § 2,
subd. (b).) That is, section 4, subdivision (e) of article XIII D expressly
requires that "[i]n tabulating the ballots [for or against the proposed
assessment], the ballots shall be weighted according to the proportional
financial obligation of the affected property." The text of that provision
being unambiguous and not running afoul of the Fourteenth Amendment, we
conclude the use of such a weighted voting scheme in the balloting on
assessment district No. 1 was compelled by article XIII D, section 4,
subdivision (e) of the California Constitution.
VI.
PETITIONERS'
ADDITIONAL CLAIMS OF INVALIDITY.
Having concluded the use of a weighted voting scheme in the
balloting on the formation of the assessment district did not run afoul of the
federal Constitution and is required by the California Constitution, we
consider next petitioners' remaining claims of invalidity.
A. Claimed violation of CEQA.
Petitioners contend the formation of assessment district No. 1 violated
provisions of CEQA. (Pub. Resources Code, § 21000 et seq.) We agree with the
water district that this challenge lacks merit. Our conclusion follows from the
peculiarly formal character of an assessment district, as the court explained
in Kaufman & Broad-South Bay, Inc. v. Morgan Hill Unified School Dist.
(1992) 9 Cal.App.4th 464, 11 Cal.Rptr.2d 792. There, a school district had
formed a community facilities district in anticipation of using the revenues
"in the future to acquire sites for the construction of schools, to lease
or purchase portable classrooms and buses, and to rehabilitate future
facilities." (Id. at p. 468, 11 Cal.Rptr.2d 792.) A developer with
property lying within the community services district filed suit to enjoin
establishment of the district on the ground that its formation violated
provisions of CEQA. The court of appeal disagreed, holding that formation of
the facilities district was not a "project" within the meaning of
CEQA. That conclusion followed, the court of appeal reasoned, from the nature
of the facilities district itself. "In our case," the court said,
"the causal link between the action (formation of [community facilities
district] ) and the alleged environmental impact (construction of new schools)
is missing. Unlike the formation of a new school district ..., the formation of
the facilities district here will not create a need for new schools. Nor is the
construction of new school facilities entirely dependent upon the formation of
[the community facilities district].... [¶] The only foreseeable impact from
the formation of [the community facilities district] is that when the District
does determine sometime in the future to acquire sites for the construction of
schools, to lease or purchase portable classrooms and buses, and to
rehabilitate future facilities, it will have some of the funds necessary to do
so." (Id. at p. 474, 11 Cal.Rptr.2d 792.)
By a kind of reverse parity of reasoning, we think a comparable analysis
applies here. The antecedent formation of the RNVWD--the water district
itself--may have qualified as a "project" within the meaning of CEQA,
but the subsequent formation of assessment district No. 1, in itself, had no
impact on the environment for, as we have explained, it is no more than a
"formalistic, geographically defined perimeters whose raison d'ętre
is to serve as the conceptual medium for the recognition of economic benefits
conferred and the imposition of a corresponding fiscal burden" (Bolen,
supra, 1 Cal.4th at p. 669, 3 Cal.Rptr.2d 843, 822 P.2d 875) and "not
a legal entity with officers and corporate rights and duties ... [but] 'the
district of land to be benefited by the improvement and to be specially
assessed to pay the costs and expenses of the improvement and the damages
caused by the improvement' " (Dawson, supra, 16 Cal.3d at p. 683,
129 Cal.Rptr. 97, 547 P.2d 1377). It is for that reason, we conclude, that
formation of assessment district No. 1 was not a "project" within the
meaning of CEQA. [FN6]
FN6. To the extent petitioners'
CEQA challenge applied to the antecedent formation of the water
district, it is time-barred. Under CEQA, once a local agency approves a
project, it must file a notice of determination, identifying the project and
summarizing the agency's environmental conclusions. (Pub. Resources Code, §
21152.) The filing of the notice of determination triggers a 30 day limitations
statute requiring prompt legal challenges to the adequacy of the agency's
environmental review process. (Id., subd. (b) & (c).) Here, the
water district filed a notice of determination for the water system project on
June 22, 1999. Petitioners, however, did not file this lawsuit until November
10, 1999, a filing that was timely under statutes governing
challenges to the formation of
assessment districts. (Sts. & Hy.Code, § 10400.) The lawsuit was not
timely, however, as it related to CEQA issues that may have been raised by the
formation of the water district.
B. Petitioners' civil conspiracy claims.
Last, we dispose of what we have
characterized as petitioners' "civil conspiracy" claims, the
allegations that respondents and others manipulated the statutory public improvement
and assessment schemes in such a way to exclude petitioners from participation
in the balloting for the creation of the water district, only to subsequently
extend its operative effect extraterritorially to encompass and assess
petitioners and others whose land lies outside the water district's boundaries.
Although petitioners' allegations may raise a specter of unfairness, we are
compelled by the state of the record before us to conclude the evidence is
insufficient to sustain such a conclusion. In support of these claims,
petitioners chose to rely on the " legislative" record made before
the water district; they did not pursue discovery on their civil conspiracy and
fraud claims in the trial court. It is no answer to say petitioners' proof has failed
because they were confined to the legislative record made before the district
board for they were not. We read both Dawson, supra, 16 Cal.3d 676, 129
Cal.Rptr. 97, 547 P.2d 1377, and Knox, supra, 4 Cal.4th 132, 14
Cal.Rptr.2d 159, 841 P.2d 144, as standing for the proposition that the
legislative character of public improvement districts and the text of the
validation statute combine to limit judicial review to the face of the record for
the purpose of determining the existence of a special benefit. It does not
follow, however (nor in our view could it follow, constitutionally), that
judicial review of fact-based challenges to the formation of an assessment
district are similarly limited to the face of the record made before the public
improvement agency. Indeed, because the legislative character of the municipal
proceedings leading to the formation of an assessment district precludes
adjudicative-like challenges and the making of a factual record, we do not see
how such a limitation could be applied effectively. The only available
litigative forum for the development of petitioners' fraud and conspiracy
claims, then, lay in the trial court. It was there they were required to pursue
evidence supporting those claims if, indeed, such evidence existed.
As it is, however, petitioners in substance have placed before us a lengthy
legislative record running some 2,000 pages, elected not to supplement it with
any discovery conducted in this mandamus proceeding in the trial court,
overlaid it with charges of conspiracy and a species of fraud linked to
politically sensitive environmental and developmental concerns, and asked us to
reverse. We cannot. Not only is the underlying constitutional challenge to the
validity of the weighted voting scheme without merit, but also the record is
bare of evidence to substantiate petitioners' conspiracy charges. It is all
very well to make allegations of a conspiracy on the part of respondents and
unnamed landowners to enrich themselves at the expense of petitioners by
trampling their voting rights. The fatal difficulty in granting relief on that
score is the absence of evidence supporting those accusations.
On the record before us, we find there is not only sufficient evidence
supporting the district's resolutions confirming the formation of assessment
district No. 1, but there is little or no evidence (as opposed to allegations
of wrongdoing) to support petitioners' allegations of a species of protracted
municipal fraud practiced on the part of district officials and a minority of
landowners over the course of some 13 years. We recognize that excluding
petitioners from voting on the formation of the water district, while
permitting them to cast weighted ballots in the subsequent assessment district
voting (with a reduced voting power) may smack of an inherently unfair way of
administering the financing of local public improvements. On the record made
below, however, we discern no illegality in respondents' actions.
CONCLUSION
The judgment of the superior court is affirmed.
We concur: REARDON, Acting P.J., and KAY, J.