Construction Ind. Force Acct. Council v. Ross Valley Sanitation

CourtCalifornia Court of Appeal
DecidedFebruary 19, 2016
DocketA139069
StatusPublished

This text of Construction Ind. Force Acct. Council v. Ross Valley Sanitation (Construction Ind. Force Acct. Council v. Ross Valley Sanitation) 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
Construction Ind. Force Acct. Council v. Ross Valley Sanitation, (Cal. Ct. App. 2016).

Opinion

Filed 1/25/16; pub. order 2/18/16 (see end of opn.)

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FIRST APPELLATE DISTRICT

DIVISION THREE

CONSTRUCTION INDUSTRY FORCE ACCOUNT COUNCIL, INC., Plaintiff and Respondent, v. A139069, A139550 ROSS VALLEY SANITARY DISTRICT et al., (Marin County Super. Ct. No. CIV1202540) Defendants and Appellants.

This is an action for mandamus and declaratory relief brought by plaintiff Construction Industry Force Account Council, Inc., a trade association whose membership includes unions, contractors’ associations and contractors throughout California. Following discovery and a contested hearing, the trial court ruled that defendant Ross Valley Sanitary District (the District) lacked statutory authority under Public Contact Code section 20803 to engage its own work force to complete a sewer system improvement project costing over $15,000 without putting the project out for competitive bid and contract.1 The trial court thereafter granted a peremptory writ of mandate commanding the District to, inter alia, cease and desist from taking further action with respect to about 139 miles of its small diameter sewer pipe with force account

1 The District’s Board of Directors is also a named defendant in these proceedings. For purposes of this appeal, the District and its Board of Directors are collectively referred to as “the District.”

1 workers, and to conduct all future replacement of this pipe through competitive bid and contract. The District has appealed this decision, challenging both the trial court’s interpretation of Public Contract Code section 20803, as well as certain factual findings underlying its conclusion that the District undertook a “district project,” within the meaning of the statute, costing in excess of the $15,000 statutory threshold. For reasons set forth below, we reverse. FACTUAL AND PROCEDURAL BACKGROUND Section 20803 of the Public Contract Code was enacted in its original form in 1983 as part of Article 52, the provisions of which “shall apply to contracts by sanitary districts as provided in the Sanitary District Act of 1923 pursuant to Division 6 (commencing with Section 6400) of the Health and Safety Code.”2 (§ 20800.) Section 20803, in particular, provides: “When the expenditure required for a district project exceeds fifteen thousand dollars ($15,000), it shall be contracted for and let to the lowest responsible bidder after notice, subject to Section 20805.” “District project,” in turn, is defined for purposes of Article 52 as “any construction, reconstruction, alteration, enlargement, renewal, or replacement of sewer facilities which the district is authorized to do, including, but not limited to, the furnishing of supplies or materials for any such work.” (§ 20801.) In its original form, the statute applied to sanitary district projects exceeding five thousand dollars ($5,000) in value. In 1985, the statute was amended such that the dollar amount was increased to ten thousand dollars ($10,000), and in 1998, pursuant to another amendment, this amount was increased to the current level of fifteen thousand dollars ($15,000).3 (Added Stats 1983 ch 256 § 95; Amended Stats 1985 ch 472 § 2; Stats 1998 ch 142 § 8 (SB 1860).)

2 Unless otherwise stated, all statutory references herein are to the Public Contract Code. 3 Historically, section 20805 derived from former Health and Safety Code section 6515.1, enacted in 1961 and amended in 1967 and 1975. (Former Health & Saf. Code,

2 The District, as a local sanitary district charged with operating and maintaining approximately 200 miles of collection sewer lines and 20 pumping stations in Marin County, is governed by Article 52. (See Health & Saf. Code, §§ 6400 to 6803.) Most of these sewer lines are “neighborhood” lines ten inches or less in diameter (referred to herein as small diameter sewer pipe). The District has long recognized the need to eventually replace about 139 miles of this small diameter sewer pipe, which has become old and dilapidated in many locations. Historically, the District’s work on its aging sewer lines has been accomplished by performing “spot repairs” on problematic sections of pipe. This work, as well as manhole rehabilitation or replacement, was performed by the District’s in-house construction and maintenance personnel, which is comprised of varying numbers of full-time District employees, as well as by private contractors. However, in recent years, a more modern technique known as “pipebursting” has become the preferred method for addressing problem areas along the District’s sewer lines. In 2010, the District began experimenting with this new technique, which allows it to replace sections of sewer line by digging two holes about 350 feet apart, and then using a hydraulic pump to pull a torpedo-like device through the old pipe, bursting the old pipe and leaving a new pipe in its wake. With pipebursting, the District can replace 350-foot sections of pipe in about three days and without trenching, rather than engaging in weeks of work-intensive spot repairs. In 2011, the District’s Board authorized the hiring of a team of new employees capable of doing pipebursting work, as well as more traditional maintenance work, to address problem sections within the approximately 139 miles of small diameter sewer lines. Public meetings were held at which the Board discussed this plan. Plaintiff, in

§ 6515.1, as added Stats 1961 ch 1445 § 3, amended Stats 1967 ch 1017 § 1, Stats 1975 ch 367 § 3.) In 1983, former Health and Safety Code section 6515.1 was recodified as section 20803 when, as part of an omnibus reorganization, all contract-related requirements for public agencies were moved into newly-enacted Article 52 of the Public Contract Code. (Stats. 1983, ch 256, § 95.) Section 20800, in turn, was added as part of this statutory reorganization. (Ibid.)

3 attendance at these meetings, objected orally and in writing on the ground that the Public Contract Code required the District to put out to competitive bid any of its pipebursting work. The District, however, rejected plaintiff’s position. Thereafter, in 2011 and 2012, the District used in-house workers to perform pipebursting work on several roads in Marin County. On June 1, 2012, plaintiff filed its petition for a writ of mandate in Marin Superior Court, seeking a peremptory writ pursuant to Code of Civil Procedure section 1085 to compel the District to put out to competitive bid its “Capital Pipe Bursting Project” (hereinafter, Project). In this petition, plaintiff alleged that the Project exceeded $15,000 in cost, and had already been implemented using in-house workers on sewer lines at San Francisco Boulevard and Los Angeles Boulevard in San Anselmo, and at Bothin Road in Fairfax. The petition further alleged the District was proceeding in violation of section 20803 by refusing to comply with the statute’s competitive bidding requirements with respect to the Project. Finally, the petition alleged plaintiff and its members would suffer irreparable harm if the District were permitted to continue violating the Public Contract Code’s competitive bidding procedures. After discovery and a contested hearing, the trial court entered a “Writ of Mandate” on May 10, 2013. This writ set forth the trial court’s findings that section 20803 is a “force account limit” statute, and that the District’s decision to hire and train a new “Capital Pipe Bursting Crew” was primarily for the purpose of replacing its aging pipes and, thus, constituted a “district project” under section 20801.

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Bluebook (online)
Construction Ind. Force Acct. Council v. Ross Valley Sanitation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/construction-ind-force-acct-council-v-ross-valley-sanitation-calctapp-2016.