Untitled California Attorney General Opinion

California Attorney General Reports·Decided April 24, 2018·No. 17-902·Published

Opinion

TO BE PUBLISHED IN THE OFFICIAL REPORTS

OFFICE OF THE ATTORNEY GENERAL State of California

XAVIER BECERRA Attorney General

_________________________

: OPINION : No. 17-902 : of : April 24, 2018 : XAVIER BECERRA : Attorney General : : LAWRENCE M. DANIELS : Deputy Attorney General : :

________________________________________________________________________

Proposed relator THE CITY OF HUNTINGTON PARK has requested leave to sue proposed defendant JOHN OSKOUI in quo warranto to remove him from the Board of Directors of the Central Basin Municipal Water District. Proposed relator contends that the water district improperly excluded proposed relator’s nominee from consideration for appointment as a director of the district by incorrectly concluding that the nominee was not “a representative of a city” within the meaning of Water Code section 71267, subdivision (f)(2).

CONCLUSION

Whether proposed relator’s nominee was “a representative of a city” and was therefore improperly excluded from consideration for appointment—thereby requiring proposed defendant’s removal from office so that a new appointment process may be conducted—presents substantial questions of law and fact warranting judicial resolution. Further, allowing the action to proceed would serve the public interest. Therefore, leave to sue in quo warranto is GRANTED.

1 17-902 ANALYSIS

Introduction

Water Code section 71267, subdivision (f)(2) provides that “[t]he term of a director” appointed on behalf of cities who are water purveyors of the Central Basin Municipal Water District (District) “is terminated if the appointed director no longer is employed by or a representative of a city.”1 In its application to sue proposed defendant John Oskoui (Defendant) in quo warranto, proposed relator the City of Huntington Park (City) seeks to remove Defendant from his office as an appointed District director, so that the City’s own nominee for that office, Dr. Michael Gomez, may be considered for appointment. The City claims that the District wrongly excluded Dr. Gomez from consideration for appointment based on an incorrect determination that he was not a “representative of a city.” The City argues that, consistent with the ordinary meaning of “representative,” it selected Dr. Gomez to speak and act for it by nominating him. For the reasons that follow, we believe that the City’s claim warrants a judicial resolution.

Background

The District is a municipal water district organized in 1952 under the Municipal Water District Law of 1911 to help mitigate groundwater over pumping in southeast Los Angeles County.2 The District purchases imported water from the Metropolitan Water District of Southern California and sells the water within the District’s boundaries to water purveyors—municipal water companies, investor-owned utilities, private companies, and other water districts—which then retail the water to residents and businesses.3 The City is a water purveyor of the District and provides water to residents of the City.4

1 Wat. Code, § 71267, subd. (f)(2). 2 Wat. Code, § 71000 et seq.; Central Basin Mun. Wat. Dist. v. Wat. Replenishment Dist. of Southern Cal. (2012) 211 Cal.App.4th 943, 946; 80 Ops.Cal.Atty.Gen. 242, 242 (1997); https://www.centralbasin.org/about-us. 3 City of Vernon v. Central Basin Mun. Wat. Dist. (1999) 69 Cal.App.4th 508, 510, 512. A “water purveyor” is defined elsewhere as “any person who furnishes water service to another person.” (Wat. Code, § 512.) 4 https://www.centralbasin.org/water-supplies/retail-water-providers. The City is organized as a general law city, not as a charter city. (See https://www.cacities.org/Reso urces-Documents/Resources-Section/Charter-Cities/Charter_Cities-List.)

2 17-902 The District’s board of directors was formerly composed of five members, each elected by the voters of one of the District’s five geographical divisions to represent that division.5 In December 2015, an audit by the California State Auditor reported that, among other things, the District engaged in improper contracting practices, spent public funds unrelated to its mission, and failed to provide appropriate leadership.6 In response, the Legislature enacted Assembly Bill Number 1794, adding Water Code sections 71265 through 71267, effective January 1, 2017.7 These sections implemented one of the audit’s recommendations: to improve the District’s governance by expanding the membership of the board of directors to include appointees of different categories of water purveyors.8 The Legislature’s purpose in enacting this legislation was to increase the board’s technical expertise and to make it more representative and accountable to a greater range of stakeholders.9

Specifically, this legislation reduced the number of elected directors from five to four, and created three appointee-positions to the board, for a total of seven directors.10 In this new scheme, one appointed position is to be selected by each of the following: (1) all large water purveyors of the District from the nominees of large water purveyors; (2) all cities that are water purveyors of the District from the nominees of cities; and (3) all water purveyors of the District from any nominee.11 The nominee of each of these three water-

5 Wat. Code, §§ 71250, 71501, 71502, 71540. 6 Sen. Rules Com., Off. of Sen. Floor Analyses, 3d reading analysis of Assem. Bill No. 1794 (2015-2016 Reg. Sess.) as amended Aug. 15, 2016, p. 4. For a more detailed account, see the auditor’s report at https://www.auditor.ca.gov/pdfs/reports/2015-102.pdf. 7 Stats. 2016, ch. 401, § 1, eff. Jan. 1, 2017. 8 Sen. Rules Com., Off. of Sen. Floor Analyses, 3d reading analysis of Assem. Bill No. 1794 (2015-2016 Reg. Sess.) as amended Aug. 15, 2016, p. 5. 9 Sen. Rules Com., Off. of Sen. Floor Analyses, 3d reading analysis of Assem. Bill No. 1794 (2015-2016 Reg. Sess.) as amended Aug. 15, 2016, pp. 6-7; Assem., Conc. in Sen. Amend. of Assem. Bill No. 1794 (2015-2016 Reg. Sess.) as amended Aug. 15, 2016, pp. 9-10. 10 Wat. Code, § 71266, subd. (a). The board will retain the five elected directors until the election of November 8, 2022, at which point there will be four geographical divisions, each of whose voters will elect a director. (Wat. Code, §§ 71266, subds. (c), (d), 71540.) 11 Wat. Code, § 71267, subd. (c)(1). A “large water purveyor” is defined as “a public system that is one of the top five purveyors of water as measured by the total purchase of potable and recycled water from the district for the three prior fiscal years.” (Wat. Code, § 71265, subd. (b).) The City is not a large water purveyor under this definition because it is the District’s sixth largest purchaser of water. (https://www.centralbasin.org/sites/defa

3 17-902 purveyor categories who receives the highest number of votes from the specified water purveyors is appointed as director for that category.12

The category at issue in this matter is all cities that are water purveyors of the District (the city category). For appointment to the city category, a nominee must “demonstrate eligibility and relevant technical expertise.”13 An appointed director in the city category must live or work within the District,14 hold no elective office,15 and own no more than 0.5 percent of a company regulated by the Public Utilities Commission.16 In addition, “[t]he term of a director [in the city category] is terminated if the appointed director no longer is employed by or a representative of a city.”17

We are informed that in January 2017, the City nominated Dr. Michael Gomez as its nominee for cities and as its nominee for all water purveyors. The general manager of the District permitted Dr.

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