Construction Industry Force Account Council, Inc. v. Ross Valley Sanitary District

244 Cal. App. 4th 1303, 198 Cal. Rptr. 3d 627, 2016 Cal. App. LEXIS 126
CourtCalifornia Court of Appeal
DecidedJanuary 25, 2016
DocketA139069, A139550
StatusUnpublished

This text of 244 Cal. App. 4th 1303 (Construction Industry Force Account Council, Inc. v. Ross Valley Sanitary 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
Construction Industry Force Account Council, Inc. v. Ross Valley Sanitary District, 244 Cal. App. 4th 1303, 198 Cal. Rptr. 3d 627, 2016 Cal. App. LEXIS 126 (Cal. Ct. App. 2016).

Opinion

Opinion

JENKINS, J.

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 *1307 District (the District) lacked statutory authority under Public Contract 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” 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 $5,000 in value. In 1985, the statute was amended such that the dollar amount was increased to $10,000, and in 1998, pursuant to another amendment, this amount was increased to the current level of $15,000. 3 (Added by *1308 Stats. 1983, ch. 256, § 95, p. 778 and amended by Stats. 1985, ch. 472, § 2, p. 1799; Stats. 1998, ch. 142, § 8, p. 850.)

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, §§ 6400-6803.) Most of these sewer lines are “neighborhood” lines 10 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 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 at 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 *1309 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.

On June 19, 2013, plaintiff submitted for the court’s consideration a “[Proposed] Judgment Directing Issuance of Peremptory Writ of Mandate to Respondents Ross Valley Sanitary District and Ross Valley Sanitary District Board of Directors and a Peremptory Writ of Mandate.” The District objected on the ground that the writ of mandate entered May 10, 2013, constituted the judgment in this case, and that any further judgment would be “substantively improper.” The trial court overruled this objection and, on July 18, 2013, entered judgment directing issuance of a peremptory writ of mandate to the District.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Lockheed Information Management Services Co. v. City of Inglewood
948 P.2d 943 (California Supreme Court, 1998)
East Bay Garbage Co. v. Washington Township Sanitation Co.
344 P.2d 289 (California Supreme Court, 1959)
Brown v. Superior Court
691 P.2d 272 (California Supreme Court, 1984)
Steelgard, Inc. v. Jannsen
171 Cal. App. 3d 79 (California Court of Appeal, 1985)
San Diego Service Authority for Freeway Emergencies v. Superior Court
198 Cal. App. 3d 1466 (California Court of Appeal, 1988)
Construction Industry Force Account Council v. Delta Wetlands
2 Cal. App. 4th 1589 (California Court of Appeal, 1992)
Construction Industry Force Account Council v. Amador Water Agency
84 Cal. Rptr. 2d 139 (California Court of Appeal, 1999)
Cal-Air Conditioning, Inc. v. Auburn Union School District
21 Cal. App. 4th 655 (California Court of Appeal, 1993)
Souvannarath v. Hadden
116 Cal. Rptr. 2d 7 (California Court of Appeal, 2002)
Doe v. City of Los Angeles
169 P.3d 559 (California Supreme Court, 2007)
Smith v. Superior Court
137 P.3d 218 (California Supreme Court, 2006)
Boy Scouts of America National Foundation v. Superior Court
206 Cal. App. 4th 428 (California Court of Appeal, 2012)

Cite This Page — Counsel Stack

Bluebook (online)
244 Cal. App. 4th 1303, 198 Cal. Rptr. 3d 627, 2016 Cal. App. LEXIS 126, Counsel Stack Legal Research, https://law.counselstack.com/opinion/construction-industry-force-account-council-inc-v-ross-valley-sanitary-calctapp-2016.