Burrey v. Embarcadero Municipal Improvement District

488 P.2d 395, 5 Cal. 3d 671, 97 Cal. Rptr. 203, 1971 Cal. LEXIS 278
CourtCalifornia Supreme Court
DecidedSeptember 13, 1971
DocketL.A. 29837
StatusPublished
Cited by19 cases

This text of 488 P.2d 395 (Burrey v. Embarcadero Municipal Improvement District) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Burrey v. Embarcadero Municipal Improvement District, 488 P.2d 395, 5 Cal. 3d 671, 97 Cal. Rptr. 203, 1971 Cal. LEXIS 278 (Cal. 1971).

Opinion

Opinion

PETERS, J.

In this mandamus proceeding,. petitioners, residents of the Embarcadero Municipal Improvement District (EMID), challenge the voting provisions governing election- of the board of directors of the district on the ground that these provisions violate the one person, one vote rule *673 required by the equal protection clause of the Fourteenth Amendment. We conclude, for reasons discussed below, that in the absence of a legislative provision transferring the voting power from the landowner-developer to the residents of the district, the voting scheme set forth in sections 20 and 64 of the Embarcadero Municipal Improvement District Act (EMID Act) violates the Fourteenth Amendment for two reasons: first, it accords extraordinarily more voting strength to some of the district’s voters than to others, and, second, it precludes nonlandowning residents from voting at all.

The EMID was created by the Legislature in 1960 under authorization of the EMID Act (Stats. 1961, First Ex. Sess. 1960, ch. 81, p. 441), 1 and has jurisdiction over approximately 1,250 acres of land located in Santa Barbara County. The EMID and the Estero Municipal Improvement District, a sister district located in the San Francisco Bay Area (Stats. 1961, First Ex. Sess. 1960, ch. 82, p. 459), were established by virtually identical statutes at the instance of land developers to enable them, through the use of the districts’ bonding power, to raise the necessary risk capital to develop the properties as subdivisions. (See Willoughby, The Quiet Alliance (1965) 38 So.Cal.L.Rev. 72.)

The Estero District gave rise to Foster City, while the EMID languished for five years in or near bankruptcy, assertedly as a result of various misrepresentations and misappropriations by the land speculators who became its first directors. (See Willoughby, supra, 38 So.Cal.L.Rev. 72, 73, fn. 5; People v. Steele (1965) 235 Cal.App.2d 798 [45 Cal.Rptr. 601].) 2 Although the receiver in bankruptcy finally managed to sell the land to new developers, the district suffered a further setback when it was unable to dispose of sewage as originally planned because a law passed in the interim made the planned system financially unfeasible. Now, with the sewer problem resolved, landowners are able to acquire building permits and development can proceed at a more rapid pace.

Most of the land in the EMID continues to be held by nonresident landowners. Intervener Wallover, Inc. alone owns more than 65 percent of the real property in the district as of the last equalized assessment roll. Despite its troubles, however, the EMID has managed to acquire approximately 200 residents, 47 of whom join as petitioners in this action, and it can be *674 anticipated that in the future it will progress toward its maximum projected population of 4,550.

The Legislature’s stated purpose in passing the act was to bring otherwise “impossible” municipal improvements to an uninhabited area of the state and to facilitate the development of a private small craft harbor, thus conserving available moneys for public harbors. (§215.) To achieve this goal it invested the district with virtually all the powers of a city except the power to zone.

Thus, the act states that the EMID may provide the major services and utilities cities normally supply their residents. It may, for example, construct and maintain street lighting and facilities for sewage and garbage disposal, drainage, reclamation, and water treatment and distribution. (§ 77.) It may maintain a fire department and police force. (§79.) It has the power to create parks and recreational facilities (§ 77), including a small craft harbor. (§ 78.) It may pass regulations concerning utilities, fire and police services, violation of which constitutes a misdemeanor (§ 97), compel residents to use sewer and garbage services (§ 98), and charge residents for all facilities and services furnished by it (§ 99).

The EMID also has the same powers to fund and carry out its operations as cities do: It has the same right and power of eminent domain as is conferred on the legislative body of a city (§81) and the power to acquire, hold and dispose of “property of every kind” within or without the district. (§ 80.) It may incur bonded indebtedness. (§ 87.) 3 It also has the power to collect a tax on both the taxable real and personal property within the district. (§162.)

Unlike a city, however, the district was to be created from an uninhabited tract of undeveloped land. In order to promote the development of the land, the Legislature created a system for selecting the governing board of the district which vests long-term and virtually total control of the district in the hands of the developing landowner. That system, which petitioners, challenge by this proceeding, is as follows:

Under the EMID Act as amended in 1969 (Stats. 1969, ch. 174), the, governing board of the district, charged with the extensive power and responsibilities set forth above, consists of five members, who are, along with a secretary, the officers of the district, (§ 26.) The board is elected by the *675 district’s voters. The act defines voter as the owner of land, including a corporation owning land (as shown in the last equalized county assessment roll) or its representative. (§§ 19, 20.) In addition, not every voter has the same number of votes; rather each voter has “one vote for each one dollar ($1) in assessed valuation of land owned by him as shown in the last equalized assessment roll.” (§ 64.) Thus, intervener Wallover, Inc., which owns more than 65 percent of the assessed valuation of land within the EMID can guarantee that its candidates for the EMID board will win. Similarly, Wallover, Inc. can guarantee that the EMID will issue general obligation bonds if Wallover, Inó. so desires.

I

In election cases, where, as here, the issues are of great public importance and must be resolved promptly, we will exercise our original jurisdiction in mandamus proceedings. (Westbrook v. Mihaly, 2 Cal.3d 765 [87 Cal.Rptr. 839, 471 P.2d 847] [vacated on other grounds (1971) 403 U.S. 915 (29 L.Ed.2d 692, 91 S.Ct. 2224)]; Farley v. Healey, 67 Cal.2d 325, 326-327 [62 Cal.Rptr. 26, 431 P.2d 650]; Miller v. Greiner, 60 Cal.2d 827, 830 [36 Cal.Rptr. 737, 389 P.2d 129], and cases cited therein; Perry v. Jordan, 34 Cal.2d 87, 90-91 [207 P.2d 47].) The issues are important because they concern the impairment of the right to vote; their resolution is urgent because an election, at which two or three of the five board seats are to be filled for a four-year term, is scheduled for early November 1971.

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Bluebook (online)
488 P.2d 395, 5 Cal. 3d 671, 97 Cal. Rptr. 203, 1971 Cal. LEXIS 278, Counsel Stack Legal Research, https://law.counselstack.com/opinion/burrey-v-embarcadero-municipal-improvement-district-cal-1971.