City of Patterson v. Turlock Irrigation District

227 Cal. App. 4th 484, 173 Cal. Rptr. 3d 651, 2014 WL 2885394, 2014 Cal. App. LEXIS 563
CourtCalifornia Court of Appeal
DecidedJune 25, 2014
DocketF067629
StatusPublished
Cited by4 cases

This text of 227 Cal. App. 4th 484 (City of Patterson v. Turlock Irrigation District) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Patterson v. Turlock Irrigation District, 227 Cal. App. 4th 484, 173 Cal. Rptr. 3d 651, 2014 WL 2885394, 2014 Cal. App. LEXIS 563 (Cal. Ct. App. 2014).

Opinion

*487 Opinion

SARKISIAN, J. *

This appeal echoes a familiar cry from the American Revolution—“No taxation without representation!” Here, a surcharge, not a tax, is the source of discontent. The surcharge, is imposed by defendant Turlock Irrigation District (TID) on electrical rates collected from customers in a service area outside TID’s boundaries. These outsiders are not eligible to vote in TID’s elections or to sit on its board of directors and, therefore, are not represented in the ratesetting process.

Plaintiff City of Patterson (City or Patterson) sought to obtain voting rights for the disenfranchised customers by requesting that the Stanislaus Local Agency Formation Commission (Stanislaus LAFCO) approve an expansion of TID’s boundaries through an annexation of the electrical service area. TID opposed City’s request and, in accordance with procedures set forth in Government Code section 56857, 1 submitted a resolution to Stanislaus LAFCO requesting the annexation proceedings be terminated.

City responded by filing this lawsuit to challenge the validity of TID’s resolution. City alleged that TID’s resolution did not meet the requirements of section 56857. In particular, City argued that the water-related financial and service concerns described in TID’s resolution were not legitimate because the application for the annexation of territory was limited to retail electrical service and would not expand TID’s obligations to provide irrigation water. The trial court denied all of City’s challenges and entered judgment in favor of TID.

Our review of the statutory provisions that govern City’s application for TID’s annexation of the territory where it provides electrical service leads us to conclude that City’s application must include a plan for providing services to the annexed territory and that plan must describe the services to be extended to the affected territory. (§ 56653.) Here, City’s application did not include such a plan and did not seek to extend any services to the affected territory. Therefore, the application failed to comply with the statutory requirements in section 56653. Because City’s application is not a type of application authorized by statute, it cannot succeed. Therefore, it would be meaningless to allow. City to challenge the validity of TID’s. resolution requesting termination of the annexation proceedings.

In short, the purported evil that City’s application seeks to redress—an irrigation district imposing charges for electrical services on customers who *488 cannot vote in district elections because they reside outside the district’s boundaries—has not been identified by the Legislature as a problem that the annexation of territory is intended to redress. The statutory scheme as presently enacted does not authorize the expansion of a district’s territorial boundaries for the sole purpose of granting voting rights to consumers of the district’s electrical services.

We therefore affirm the judgment in favor of TID.

FACTS AND PROCEEDINGS

TID’s expansion of electrical service

In January 2002, Pacific Gas and Electric Company (PG&E) filed an application with California’s Public Utilities Commission (PUC) for authorization to sell to TID certain electric distribution and transmission facilities in a portion of western Stanislaus County. Because the service area was outside TID’s boundaries, the application to the PUC included a request that TID be allowed to provide extraterritorial service pursuant to Public Utilities Code section 9608.

In April 2003, the PUC approved PG&E’s application and the proposed transaction. In accordance with the relevant agreements and the PUC’s approval, TID was to operate the electric distribution system in an area that included City and adjacent rural areas and contained approximately 225 square miles (Westside area) with 5,450 existing accounts. One reason the PUC approved the application was California’s policy of favoring service area agreements between electric corporations and districts that avoid duplication of facilities and service and the corresponding inefficient allocation of resources. In furtherance of this policy, PG&E and TID agreed not to serve retail electric customers in each other’s service areas and not to build or operate transmission or distribution facilities in each other’s service areas.

When TID acquired the electrical service facilities in the Westside area, it made no attempt to annex the new service area or to expand its sphere of influence.

City’s annexation application

Over eight years after the PUC’s approval, Patterson’s city council passed a resolution authorizing the city manager to file an application with Stanislaus LAFCO to change TID’s boundaries to include the Westside area. The change of boundaries would allow residents of that area to be represented on TID’s board of directors and to vote in future TID elections.

*489 In August 2011, City filed an application for sphere of influence amendment, reorganization, and annexation to TDD. The application stated: “Pursuant to Government Code §56654, the City of Patterson is seeking annexation/sphere of influence reorganization for only retail electrical service to Turlock Irrigation District for [the Westside area].” City’s reason for the proposal was to provide residents of the Westside area “the right to be represented concerning their retail electrical charges.” The application stated that residents of the Westside area were “subject to a surcharge imposed only on [Westside area] customers . . . .” The application asserted, in effect, that voting rights were important for these customers because the PUC “cannot regulate retail electrical utilities owned by a public entity, such as TID.”

Stanislaus LAFCO accepted the application, placed the proposal on the agenda for its next meeting (for informational purposes only), sent a copy of the application to TID, and sent a letter to City about the application. The letter (1) listed additional items needed for the application, (2) identified items that needed clarification, and (3) stated that City would have to bear the expense of the municipal service review that section 56425 requires before a district’s sphere of influence may be modified. The letter requested “clarification regarding a proposal affecting ‘only retail electric service,’ as this would suggest a divestiture of power for [TDD] in the subject area, as defined under Government Code §56037.2. Should a proposal for a change of organization involve a divestiture of power, it shall only be initiated by the legislative body of that special district (§56654b).” 2 The letter also indicated that TID had acted appropriately when it decided not to apply for a change of its boundaries: “Stanislaus LAFCO has determined that changes to [TID’s] electric service area do not require the application for change of organization or reorganization with LAFCO (see also: Water Code §22120).”

TID’s resolution requesting termination

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Bluebook (online)
227 Cal. App. 4th 484, 173 Cal. Rptr. 3d 651, 2014 WL 2885394, 2014 Cal. App. LEXIS 563, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-patterson-v-turlock-irrigation-district-calctapp-2014.