City of San Buenaventura v. United Water Conservation Dist.
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United Water Conservation District (“District”) manages the groundwater resources in Ventura County. City of San Buenaventura (“City)” pumps groundwater from the District’s territory and sells it to residential and commercial customers.
The District collects a fee from the city by applying a fixed ratio of rates for nonagricultural users, such as the City, who pump groundwater for municipal and industrial (M&I) uses. The District charged such users three times more than agricultural (also known as “Ag”) users in accordance with Water Code section 75594.
The City filed its complaint for determination of invalidity and declaratory relief and petition for writ of mandate. The City alleged section 75594 is facially unconstitutional because the groundwater extraction rates charged for the water year 2019-2020 were not allocated to the City and other M&I users in a manner that bears a reasonable relationship to the City’s burdens on or benefits from the District’s activities.
The Second Appellate District affirmed the trial court’s judgment and held that the groundwater extraction charge is invalid as to nonagricultural users and must be set aside and section 75594 violates the California Constitution and is therefore unconstitutional. The threshold issue concerned the applicable standard of review. The court held that District’s rates for the 2019-2020 Water Year do not comply with proposition 26. The court reasoned that the constitutional requirement of a ‘fair or reasonable relationship’ is not resolved by application of a rigid judicial standard nor by application of a deferential standard of substantial evidence.
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