Professional Documents
Culture Documents
The Case of Half Moon Bay Vs Its Neighbors
The Case of Half Moon Bay Vs Its Neighbors
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”Superior Court 0f California County 0f Santa Clara
Re: CITY OF HALF MOON BAY VS. GRANADA COMMUNITY SERVICES DISCTRICT
Dear Clerk:
Pursuant to the Order for Mandatory Transfer 0f Venue signed by Judge Richard H. DuBois filed on
September 27, 2017, enclosed herewith are all documents pertaining to the above mentioned case.
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Sincere]
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Mia Marlowe
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Original
. CIVIL UNLIMITED
CASE SUMMARY
CASE N0. 17-CIV-03092
CITY 0F HALF MOON BAY § Location: Civil Unlimited
CASEINFORMA'I‘ION 01 Q
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File Date 07/1 1/2017 Case Type: (37) Unlimited Other Contract
MONTARA WATER AND
CITY 0F HALF MOON SANITARY DISTRICT; GRANADA Case Flags: Answer/ Response l Denial -
I7-CIV~03092
Court Civil Unlimited
Date Assigned 07/1 1/2017
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PA R'I’Y INFORMATION ‘
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Lead A (Jamey:
Plaintiff CITY OF HALF MOON BAY CONDOTTI, ANTHONY P
Retained
83 l-440-7289(W)
CASE SUMMARY
CASE N0. 17-CIV-03092 650-348-5195(W)
Case Managem ent Conference (9:00 AM) (Judicial Officer: Case Management Conferences, -
11/03/2017
;Location: Courtroom 2J)
09/1 9/20 1 7
Motion to Transfer (9:00 AM) (Judicial Officer: DuBois, Richard
H ;Location: Courtroom 7A)
MOTION FOR MANDA TORY TRANSFER 0F VENUE
Events: 08/25/2017 Motion
09/19/20l7 r r
E Notice of Entry OfOrder
Filed by: Real Party In Interest SEWER AUTHORITY MlD-COASTSIDE
Complaint : 001 COMPLAINT
09/ 2/20 7
I I
/@ Request for Judicial Notice
IN SUPPORT OF MOTION FOR MANDA TORY TRANSFER 0F VENUE
Filed by: Cross Defendant CITY OF HALF MOON BAY
Complaint :001 COMPLAINT
SUlvm/IARY .
CASE N0. 17-CIV-03092
Mailing Date: 09/06/2017
Party Served: Anomey WIT‘TWER, JONATHAN; Anomey CONDO'ITI, ANTHONY P
Complaint 001 COMPLAINT :
09/06/20 7I
Statement
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09/06/20 l 7 /@ Joindcr
{N OPPOSITION TO PLAINTIFF’S MOTION FOR TRANSFER 0F VENUE. ETC.
SEWER AUTHORITY MID-COASTSIDE
Filed by: Real Party In Interest
Complaint : 00] COMPLAINT
09f06/2017
E Opposition
TO MOTION FOR MANADA TORY TRANSFER 0F VENUE
Filed by: Cross Complainant GRANADA COMMUNITY SERVICES DISTRICT
Complaint : 001 COMPLAINT
CASE SUMMARY
CASE NO. 17-CIV-03092
.
09/05/201 7 fl ProororScmce by OVERNIGHT DELIVERY of
ANSWER T0 CROSS COMPLAINTAND CROSS COMPLAINT
Mailing Dale: 09/05/2017
Party Served: Anomey FITZGERALD, CHRISTINE C; Attorney CONDOTTI,
ANTHONY P
Complaint 001 COMPLAINT
:
08/29/2017 /@ Notice
0F ERRA TA T0 CROSS-COMPLAINT
Filed by: Cross Complainant MONTARA WATER AND SANITARY DISTRICT
08/25/20 7 l
Proposed Order Received
GRANTING PLAINTIFF'S MOTION FOR MANDATORY TRANSFER 0F VENUE
From: Cross Defendant CITY OF HALF MOON BAY
Complaint : OOI COMPLAINT
08/25/2017 /@ Motion
FOR MANDA TORY TRANSFER 0F VENUE
Assessed lo: Cross Defendant CITY OF HALF MOON BAY
08/24/2017 L
/_ Answcr (No Fee)
Answer
Filed by: Cross Complainant MONTARA WATER AND SANITARY DISTRICT
Complaint : 001 COMPLAINT
08/24/20 7
1
Cause ot'Action Cross-Complaint (002-MONTARA WATER)
Filed By MONTARA WATER AND SANITARY DISTRICT
CASE SUMMARY .
CASE N0. 17-CIV-03092
Filed Against CITY OF HALF MOON BAY
Action Type Action
Filed
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NOTICE OF CASEFTJEB@%T CONFERENCE
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You are hereby given notice of your Case M2 n: gemeni Conference. The date, time and dep: rtment have beenwn tier) above.
l. ln accordance wiih applicable California Ruies ofthe Court end local Rules 2.3(d)1—4 and 2.3(m), you are hereby ordered
to: z ‘
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9.). ..Sgryé..a_1_i.n§_m§q_igangwts.2.9sii Ia ngofs. oisservice- on those defindams with me court \«.:1thin.eo.,days of filing
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the complaint (CRC 201. 7)
[21% b) Save a copy of Lhis notice, C: 5e Mannagemert Sta tement and ADR Informa-‘ion Sh: Eton EH named parties in ihis
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and serve completed Case Management Statement at 1“
cast 13-days before the Case Management
a c) File
'_ d) Meet and confer, in person or by te1ephone m consider each 0f the Issucs iden H
lied
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'In CRC 212(1) no 1amer Lh>n
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30—days before the date set for the Case Management Conference:
[\J .if IT,” fan L0 .ouo u Lha orders above, youa re 0rd: red to sancLioned. The Order snow cause why you should not be
~to Show Cause hearing will be at the sametime as the Ceca_
Conf er:nce hearing. Sanctions may Managemmt
include monetary, evidentiary 0r issue sanctions as well as striking pleadings and/or dhmisscl.
Continuances of Case Management Conferences are highly disfavored unkess good cause is shown
°arti=s may proceed to ah appropria te dispute resoiution process (”ADR”) by filing a Stipma ion ”m ADR and Pmposad
Order (see attached form). if plaintirf files a St lpuiation t0 ADR and Proposed Order eleating Lo proceed Lo judiciai
arbitration, the Case Management Conference will be taken off the court calendar and the case will be reIerrcd tlo
Lhe
arbitration Administrator. lf plaintiffs and defendants file a completed stipulation to another ADR proccss (e g,
ficdncuon) 10—3235 prior to the first scheduled Case Management Conference thn Case Manngncnt Confcrcnce wiH be
continued foi 90-days to allow parties time to comp1ete their ADR sessién. The court will notifii parties 0f Lhelr new Cass
Management Conference date.
if you have file d a default or a judgment hes been entered, your c: 5e is not automaticany taken cm" Case Management
Conference Calendar. If ”Does”, "Ross," etc. are named in your complaint, they must be dismissed 1n order Lo close the
case. If any party is in bankruptcy, the case is stayed on1y as tothat named party
You are further order: d to appear in person* (or thiough your attorney 0f record) at ihe Case Management Conferenca
noticed above You must be thoroughly
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a) Referring partiesto voluntary ADR and set ting an ADR completion date; l. ’{Ln u ,,.
I—phamc appearances at case management conferences ore ovoiIabfe by contacting CourrCoU, LLC, dn independent vendor at Inastfue busrness days pngr
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MICHAEL G. COLANTUONO,
MColantuono@chwlaw. us
State Bar N0. 143 5 5 1 0 FILED
BAN MATEO COUNTY
PAMELA K. GRAHAM, State Bar N0. 216309
PGraham@chwlaw.us
SEP 2 8 2017
EDUARDO JANSEN, State Bar NO. 302757
Elanscn@chwlaw.us
FAX
COLANTUONO, HIGHSM'ITH & WHATLEY, PC
420 Sierra College Drive, Suite 140
Grass Valley, California 95945-5091
BY Telephone: .(530) 432-7357
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Facsimile: (530) 432—7356
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Attorneys for Plaintifi
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FOR THE COUNTY 0F SAN MAng
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CITY 0F HALF MOON BAY, amunicipaj CASE NO.
Colantuono,
corporation, Unlimited Jurisdiction
420
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Plaintifi, (Case assigned to Hon. Robert Foiles)
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Cross«Complainant,
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and
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11 GRANADA COMMUNITY SERVICE Cross-Complaint Filed: September 5, 201 7
140 DISTRICT,
Whutley,
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SUITE
95945-7366
Cross—Complainant,
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CITY OF HALF MOON BAY,
College
Valley.
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Cross-Defendant,
Slalro
Glass
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Colantuofio.
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and
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SEWER AUTH ORITY MID—COASTLINE,
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Declaratory Relieffiled by Defendant Montam Water and Sanitary District (“Montara” or “Cross-
Complaint-for Declaratory Relief flied on August 29, 2017, by admitting, denying and/or alleging as
follows:
PC [I ("Authority") operates a secondary wastewater treatment and di3posal system which is comprised of
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Whaney. 12 a treatment plant, an ocean outfall pipeline, and a collection system. The City further admits that
SUITE
959A5-7356
8c 13 pursuant to the 1976 Joint Exercisc'bfPOWCrs Agreement (“IPA"), the Authority is empowored to
Dtlvo.
CA
'14 develop, construct, and owu ajoint waste collection, transmission, treatment disposal, and
HIghsml‘Ih
College
Valley. 15 management system for wéstewater‘ received fiom the ssparate sanitary sewer collection systems
Sleuo
Grass
16 owned by the City, Montarg, and Granada Community Services District (“Granada”). The City
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17 further admits thafthc Intertie Pipe System (“Intgrtie”) is a sewer force main and associated tanks,
18 pumfis, 'and mechanical and electrical components that conveys wastewater fiom Montara’s and
19 Granada’s sewer collection systems t0 thé Authority’s treatment plant in the City of Half Moon Bay.
20 Except as expressly adrnitfeda the City denies each and every allegation in Paragraph 5.
21, 6. In answering Paragraph 6, the City admits phat, upbn the formation of the Authority in
22 1976,'the plan for the secondary wastewater treatment and disposal system contained four
23' Ito
components, which were be built in two Phasm. The City admits that Secfion IV, para. (B)(1)(a)
26 capacity rights, constmction costs, and operation and maintenance expenses being
28 facilities, connecting the Momara and Granada systems to a new ocean outfall, .
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shared equally between Montara and Granada; (ii) An ocean outfall pipeline
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and attendant pumping facilities, discharging the combined treated efiluents from
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the three member agencics' tmahnent systems into the ocean adjacent to the
existing but presently inoperative Half Moon Bay outfall line, shared one-half
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(1/2) by Half Moon Bay, one-quarter (1/4) by Montara and one—quarter (1/4) by
secondarily treated emuent from the treatment plant at the Half Moon Bay site
south to the golf course and .adjacent agricultural and floricultural lands, and
The City fithher admits that the lntertie consists 0f approximately 7.3 miles of pipeline and four
PC ll pump stations to collect and tmnsmit the flow 0f wastewater created by Montara and Granada for
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12 treatment and di3posal. The City filrther avers that the IPA and its amendments, which define the
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95945~7356
a Pment Project and its co’mpofients and phases, are documents ihat Speak for themselves and arc the
Drive.
as.
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A
College
Volley.
15 remaining allegation in Paramph 6.
SIBrto
Grass
16 7. In rwponsg to Paragraph 7, the City admits that the IPA, as amended, outlines
Colahiuono.
18. secondary activated sludge Eéaupent plan loéated at the site of the existing Half Moon Bay
19 treatment plan facilities, and designed to treat the combined flows fi'om the individual collection
20 systems of the member agenciw”) or three sgparate treatment plants in the City, Montara, and
21 Granédg, as outlined in the JPA and its améndments. The City further admits that the member
22 agencies chose the first altemau've of a single plant. The City avers the IPA and its amendments are
23 documents that Speak for themselves and are the best evidence of their contents. Except as expressly
24 admitted! the City denies each and every remaining allegation in Paragaph 7.
25 8. In answ-ering Paragraph 8, the City admits that under the IPA, a member agency’s
26 share of the obligation to fiznd the Authority’s general fund is based on its share of flows to the
27 Authority’s plant. The City fiu'ther admits that the IPA provides thaf an annual Genera} Budget shall
28 be prepared by the Authofity and submitted to the governing bodies of the member agencies for
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PLAINTIFF CITY OF HALF MOON BAY'S ANSWER
TO DEFENDANT MONTARA WATER AND SANITARY DISTRICTS CROSS-COMPLAINT
18483”
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approval, and specifics that final approval by the Authority shall require the pn'or consent 0f all
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member agendas. The‘City-avers the IPA and its amendments, Specifically in how it defines a
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project budget, general budget, and allocation of expenditures, are documents that speak for
themselves and are the best evidence 0f their contents. The remainder of the allegations in
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Paragraph 8 consist entirely oflegal theory, conclusions, and argument requiring no response.
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However, to the extent that Paragaph 30 contains any factual allegations, the City denies each
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9. In answering Paragraph 9, the City admits that since the creation ofthe Authon'ty, the
City has funded many projects associated with the Authority, and that it has gone above and beyond
10 its legal obligations as a member of the Authority. The City avers the allegations in Paragaph 9
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11 consist entirely oergaI theory, conclusions, and argument requiring n0 response. Howcvér, to the
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Whafley‘ 12 czxtent that Paragraph 9 contains any factual allegations, the City denies each and every allegation in
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95945-7356
a 13 Paragraph 9.
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14 10. The City avers the allegations in Paragraph 10 consist entirely of legal theory,
College
Volley,
15 conclusions, and argument requin'ng no rqsponse. However, to the extent that Paragraph 10 contains
Slerm
Glass
16 any factual allegaiions, the City denieé-each and every allegation contained therein. The City further
Colantuona.
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17 avars the IPA, as a_mended, is a docmnent that speaks for itsélf'and is the best evidence ofits
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18 contents.
19 11. In answering Paragraph 11, the City admits that 0n June 12, 2017, the Authority,
20 Granada, and Montara approved th; General Budget as presented, but the City only approved a
21 portion ofthe General Budget, specifically declining t0 approve the pOrtion of the General Budget
22 chmctefized as the “Infiash'ucture Division.” The City avers that the Stipulation and Order
23 Regarding Expensw and Assessments of Sewer Authority Mid-Coastside, entered by the Court on
24 September 13, 2017, is a document that speaks for itselfand servw as the best evidence ofits
25 contents. The City avers the remaining allegations in Paragraph 11 consist entirely oflegal theory,
26 conclusions, 'and argument requiring no response. However, to the extent that Paragraph 11 contains
27 any addifional factual allegations, the City denies each and every allegation contained therein.
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PLAINTFP CITY OF HALF MOON BAY’S ANSWER
T0 DEFENDANT MONTARA WATER AND SANITARY DISTRICTS CROSS-COMPLADIT
134831.]
12. In answering Paragraph 12, the City admits that on June 12, 2017, the Authority,
Granada, and Montara approved the Genera] Budget as presented, but the City only approved a
portion of the General Budget, specifically declining to approve the portion 0f the thera] Budget.
characterized as the “Infiastmcture Division.” The City avers ihat the Stipulation and Order
Regarding Expenses and Assessments of Sewer Authority Mid-Coastside, entered by the Court on
September 13, 2017, is a document that speaks for itself and servw as the best evidence ofits
contents. The City avers the remaining allegations in Paragraph 12 consist entirely oflegal theory,
conclusions, and argument requin'ng no response. However, to the extent that Pafagraph 12 contains
any additional factual allegations, the City denies each and every allegation contained therein.
10 13. The City avers the allegations in Paragaph l3 consist enfirely of legal theory,
PC ll conclusions, and argument requiring no response. However, to the extent that Paragraph 13 contains
MO
Whulley.
12 any additional factual allegations, the City denies each and every allegation contained therein.
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95945-7356
a I3 14. The City avers the allegations in Paraggph 14 mnsist entirely of legal theory,
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Collage
Vollev.
15 any additional factual allegations, the City denies each and every allegation contained therein.
Slelra
Glues
16 ‘15. The City avers the allegations in Paragréph 15 consist entirely oflegal theory,
Colan1uono.
420
‘17 conclusions, and argument requin'ng no respOnse. However, to the extent that Paragraph 15 contains
18 any additional factual allegations, the City denies ea'ch and every allegation contained therein.
I9 16. The City avers the allegations in Paragraph 16 consist entirely oflegal theory,
20 conclusions, and argument requiring no response. However, to the extent that Paragraph 16 contains
21 any additional factual aflegafions,,the City denies each and every allegation coutained therein.
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AFFIRMATIVE DEFENSES
24 Without admitting any allegafions in the Cross-Complaint 0r assuming the burden ofproof
25 for any of the following claims, defenses, or issues, the City is informed and believes, and upon such
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PLAINTIFF CITY OF HALF MOON BAY’S ANSWER
T0 DEFENDANT MONTARA WATER AND SANITARY DISTRICTS CROSS-COIWPLADQT
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Complainant)
Whafley. 12 3. AS A FURTHER SEPARATE DEFENSE, the Cross-Complaint fails to set forth facts
SUIIE
an award of costs of suit against the City and 'm favdr of Cross-
95945-7356
nghsmlfh
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14 Complainant.
College
Valley.
15 FOURTH AFFIRMATWE DEFENSE
sierra
Grass
16 (Waiver! Estoppel)
Colonluono.
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l7 4. As A FURTHER SEPARATE DEFENSE, the Cross_comp1ainaut is haired by the
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l8 doctrine ofwaiver andlor by action of law or 'conduct frOm the claims élleged in the Cross-
19 Complaint
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any relief in equity because the balance of harms 'does not warrant equitable relief.
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25 (Unclean Hands)
27 equitable doctrine of unclean hands and any other applicable equitable doctrines.
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PLAINTIFF CITY OF HALF MOON BAY’S ANSWER ,
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7. The City has insuficient information and knowledge at present on which to form a
belief as to whether it may have additional, as yet unstated, defenses to this suit. The City reserves
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the right to assert additional defenses if finther investigation indicales such affiunative defenses
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would be appropriate.
2. That the Coun issue judgment fully in favor ofthe City on the Complaint;
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3. That the Cros's—Complaint be dismissed with prejudice and judgment entered in favor
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Whatley.
12 of the City;
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959454356
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‘13 4. That thé Court award the City its costs, attomey fees, and related expenses;
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14 5. That Cross—Complainant fake nothing by this action; and
College
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15 6. That the Court gent such‘other relief és the Court deems just and proper.
Slelra
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Colanluono.
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l7 DATED; September 28', 20'17 -
ANTHONY P. CONDOTTI
City Attorney, City ofHalf Moon Bay.
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COLANTUONO, HIGHSMITH &
l9 WHATLEY, PC
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MICHAEL G. COLANTUONO
22 PAMELA K. GRAHAM
EDUARDO JANSEN
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I am employed County ofNevada, State of California. I am over the age of 18 and not
in the
a party to the within action. My business address is 420 Sierra College Drive, Suite 1'40, Grass
Valley, California 95945-5091. On September 28, 2017, I served the document(s) described as
PLAWTIFF CITY OF HALF MOON BAY’S ANSWER T0 DEFENDANT MONTARA
WATER AND SANITARY DISTRICT’S CROSS-COMPLAINT FOR DECLARATORY
RELIEF on the interested partiw in this action addressed as follows:
Whutley.
12 deposited with the U.S. Postal Service on that same day with postage thereou fully prepaid at Grass
Valley, California, in the ordinary course of business. I am aware on motion ofthe party served,
SUIIE
that
95945-7356
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13 service is presumed invalid if the postal cancellation date or postage meter date is more than one day
Drive.
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I declare under penalty ofperjury undér the laws of the Stateof California that the abOVc is
Valley.
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true and conect.
Slena
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Grass
420
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Ashiey A. Lloyd
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PROOF 0F SERVICE
City ofHalfMoon Bay v. Granada Community Services District et a!
Whutley,
12
SUITE
?5945-7350
Chrisu'nc C. Fitzgerald RA. Nelson
Charles
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13 Fitzgerald Law Offices Maddow, Nelson & Judson
Bold, Polisner,
Dtlve,
345 Lorton Avenue, Suite 301 2125 Oak Grove Road, Suite 21 O
14
Highsmlth
CA
Burlingamc, CA 9401 0 Walnut Creek, CA 94598
College
Telephone: (650) 348-5 195 Telephone: (925) 933-7777
Valley.
15
Facsimile: (650) 23 9~1 207 Facsimile: (925) 933-7804
Slam:
Glass
16 Email: fitzgemldlaw@sbcgloba1.net Email: cnelson@bpnmj.oom
Colantuono.
Attorneysfor Defendant Email: tyan@bpmnj .com -
420
17 Montara Water and Sanitary District Email: cjudson@bpmnj.com
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Email: snagle@bpnmj.com
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Attorneysfor Real Party in Interest -
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SewerAurhority Mid— Coastline
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CltyofHalfMoon Bay -
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Atchison, B'ansone, Condotti & Kovacevxch t.
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134831.]
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STATE OF CALIFORNIA
COUNTY OF SAN MATEO
I Rndim M. Camlmo. Ihc Clerk ul'lhc Supeflm (hm ol'lhc above
ulead County. do hueby cmHy 11m: IMF rains La u flu! true
wdoonmwpyofthaoriginalonsfllekmyu
camfully mpamd mam
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Wmcu my hand md 5qu ofqu Superb: Com 4
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CARL P NELSON
A. cnclsonfiflbpmni .con )
(c SBN 1 1511 8
T1M0T_I{YJ. RYAN (u vanaabpmnj com)SBN83fi57 DCT—
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CRAIG L JUDSON c
(c iudsonQabpmni .com) SBN 114926
SHARON M NAGLE (snnuglcflbpmni. com) SBN ”glfiRK 0F THE COURT
Bold, Polisner, Maddow, Nelson & Judson R! 0R COURT OF C
TY $993M TADCUSI,
A Professional Corporation 63:9
2125 Oak Grove Road, Suite 21 0 ——~—w- Cb
Walnut Creek, CA 94598 By
(925) 933-7777 —, Telephone
OOOOHONLI‘IQUJNF‘
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SUPERIOR COURT 0F CALIFORNIA
SANITARY DISTRICT, )
Complaint Filed July 11, 2017
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(Assigned to Hon. Robert Foiles, D. 21 1
Defendants. 4
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NOTICE IS HERFBY GIVEN that on September 13, 2017 an Order Regarding Expenses
Nw ahd Assessments ofSewcr Authority Mid- Coa3131de was duly entcred m the form attached hereto
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N fh as Exhibit] 1
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m4 Daled;Septembcrl'5,2017 j
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w inx -BOLD,. POLISNER MADDOW NELSON &JUDSON
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arlPTA. Nelson, Attorneys for Real Party In Interest
Mu 1M mm ;
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1 NOTICE OF ENTRY OF ORDER
Regarding Expenses and Assessments ot Sewer Authority Mid Coastsidc
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PROOF 0F SERVICE
l, the undersigned, hereby declare that I am over the age 0f eighteen years and not a party
to the within action. My business address is 2125 Oak Grove Road, Suitc 210, Walnut Creek,
California, 94598.
Michael G. Colantuono/ Pamela K. Graham Attorneys for Plaintiff, City of Half Moon Bay
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Eduardo Jansen Tcl: 530-432-7357 / Fax: 530-432-7356
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David E. Schricker Attorney for Defendant Montara Water and
21 Law Office of David E. Schricker Sanitary District
563 S. Murphy Avenue Tel: 403-5 17-9923 / Fax: 408-900-8225
22 Sunnyvale, CA 94086 Email: dschricker@schrickerlaw.com
23
Christine C. Fitzgerald Attorney for Defendant Montara Water and
26
x By UNITED STATES MAIL, I enclosed the documents in a sealed envelope or package
27
addressed to the persons at the addresses listed above and placing the envelope for collection and
28 mailing, following our ordinary business practices. I am readily familiar with this business’s
PROOF OF SERVICE
practice for collecting the processing correspondence for mailing. On the samé day that
correspondence is placed for collection and ma‘iling, i1 is deposited in the ordinary course of
business with the United States Postal Service, in a sealed envelope with postage fully prepaid.
BY CM/ECF ELECTRONIC SERVICE, I electronically filed the foregoing with the Clerk
0f Court using the CM/ECF system which will automatically send email notification of such
filing t0 the email addresses listed above.
11
I declare under penalty ofperjury under the laws of the State of California that the
12
foregoing is true and correct, and that this declaration was executed on September 18, 201 7, at
13V
15
16
a %flflfl
Shanno’firiw‘fihh
W/Lfié
.17
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20
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2
PROOF OF SERVICE
Exhibit’l
ENDORSED FILED
_
SAN MATEO COUNTY
CARL RA. NELSON <cnclsongaszmnj.com) SBN 15118 1
r
CI ark 0f ”19
SHARON M. NAGLE (snagle@bpmnj.com) SBN 179124 B‘ Superlor Coun
Bold, Polisner, Maddow, Nelson & Judson y - ‘ I
P
[DE-P V
bmwv—n
Plaintlff,
) STIPULATION AND ORDER
) REGARDING EXPENSES
VS-
r ) AND ASSESSMENTS OF
) SEWER AUTHORITY MID-
GRANADA COMMUNITY SERVICES DISTRICT ) COASTSIDE
.._J and MON'I‘ARA WATER AND SANITARY
) ’
Z Defendants.
)
)
The
Dept.
on.
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¥
£2 and
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[Excm t'from
(Gov. Ode. §6103)
filing fees]
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o: MNr—Ab—t—nL—a
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declaration of the panies’ respective rights and obligations under thc February 3, I976
8, hereinafter called “the JEPA,” principally with respect to whether cenain activities (119., work
1 STIPULATION AND ORDER
Regarding SAM Expenses and Assessments
9- ¢-
related to the “intertic pipeline and attendant pumping facilities;’) are properly included within
“[t]he total expenses of operation and maintenance of all of the components 0f the Present
La.)
Project” to “be shared in a manner based on flows into the single consolidated treatment plant
facility” 0r separate “Proj ects” regarding which each Member Agency may Choose whether or
not “to be a participant.” (Terms in quotes are from the JEPA as amended.)
OQOOQO‘xUl-JL
2. Defendant GRANADA COMMUNITY SERVICES DISTRICT (“GCSD”) is and,
at all times relevant herein, was a local agency duly organized under the Sanitary District Law of
1923, and now is existing and authorized under the Community Services District Law, with its
13 Section 65 12.7, and now is existing and authorized as a Water and Sanitary District, with its
16 is and, at all times relevant herein, was a joint powers agency duly organized under the JEPA,
17 pursuant t0 the Joint Exercise 0f Powers Law, Government Code section 6500 er seq. SAM’S
21 approval by SAM shall require the prior consent of all Member Agencies. On June 12, 20] 7, the
22 SAM Board submitted t0 each Member Agency for approval a General Budget for Fiscal Year
23 2017-201 8. GCSD and MWSD approved the General Budget as presented, but CITY only
24 approved a portion 0f the General Budget, specifically declining to approve the portion ofthe
25 General Budget characterized as the “Infrastructure DivisiOn,” which includes the repair and
26 replacement 0f a segment of the Intertic Pipeline System (from Stations 51+50 to 73+50) and the
27 repair and replacement of a surge tan}; at the Portola Pump Station, as well as related costs for
Ix.)
STIPUIATTON AND ORDER
Regarding SAM Expenses and Assessmenls
x
. . ‘
5..
6. The JEPA requires unanimous Member Agency approval 0fthe General Budget,
N which did not occur. As a result, since the current fiscal year began on July l, 2017, pursuant to
'
L»)
Resolution 8-2017, SAM has been drawing down its Operating Reserves t0 continuc the
$ collection, transmission, treatment, and disposal 0f the wastewater generated within the
Ll}
territories 0f the Member Agencies. At the rate SAM has been drawing down its Operating
a Reserves it will need new funding by approximately August 18, 2017.
\J
7. SAM has no funding mechanism 6f its own Io continue operations other than
m drawing upon its Reserves and relying upon Member Agency payments 0f their respective
O issuc invoices to the Member Agencies to cover expenses associated with the collection,
H
h‘
transmission, treatment, and di3posal of the wastewater generated within the Member Agencies‘
.— M territories. Failure t0 continue SAM’S operations not only threatens t0, but will, seriously
H
DJ
endanger the public health, safety, and welfare.
.—n
L 8. The Parties desire that SAM continue the collection, transmission, treatment, and
—I (J‘I
diSposaI of the wastewater generated within the Member Agencies’ territories t0 protect the
.—.. O\
public health, safety, and welfare, and to enable this to continue, hereby stipulate as fgllows:
H 'Q a. SAM shall operate pursuant t0 its Fiscal Year 20] 7~2018 Genéral Budget
I—n 00
as approved by the SAM Board for submittal to each Member Agency for approval 0n
H \O June 12, 2017 in the form heretofore presented to the Member Agencies,
NO b. SAM shall issue monthly invoices to the Member Agencies based on the
N '—‘
Fiscal Year 201 7-201 8 General Budget, each invoice comprising one-twelflh of the
?\J DJ
c. By this stipulation CITY shall be deemed to have approved under protest
N LII
Division,” and shall pay any amount for the repair and replacement 0f a segment of the
M O\ Intertie Pipeline System (from 'Stations 51+SO to 73+50) and the repair and replacement
N \J of a surge tank at the Portola Pump Station, as well as related costs, including without
MW limitation those for the SAM Engineering & Construction Contracts Manager. The CITY
payment of t'hat portion shall be without prejudice to thé position of any party to this
litigation. In other words, no waiver, estoppel or other legal or equitable bar as to any
party shall arise from the CITY’S payment under protest pursuant to this stipulation 0r
\Doox-JONUIA
any order arising from it. Any claim of any party as to any portion ofIhe 2017-] 8
Genera} Budget as referenced in Paragraph S (including but not limited to any payment
under protest) may be resolved by further agreement 0f the parties, which may result
10 from the parties’ participation in “any mutually agreeable method of settlement” under
12 above—captioned litigation.
13 9. This stipulation is intended to enable SAM to continue its ongoing operations and
14 proceed with expenditures in accordance with the 2017-18 GerieraI Budget as referenced in
15 Paragraph 5, and no language herein is to be construed as a waiver 0f any claim, cause 0f action,
16 defense, objection to any procedural matter (including without limitation, objection t0 seeking an
17 alternative venue pursuant to section 394 of the Code of Civil Procedure), or otherwise to be
18 construed as a waiver of or consent to any matter not expressly contained herein, including but
l9 not limited to any right(s) of any party contained in the JEPA. Notwithstanding the foregoing,
20 the parties further agree that SAM may, without further action by its Board (other than such
21 action(s) required to award construction contracts and supporting service contracts), expend the
funds shown appropriated by the “Infrastructure Division” 0f the FY 201 7—201 8 General Budget
24 the Intertie Pipeline System (from Stations 51+50 t0 73+50) and the repair and replacement of a
25 surge tank at the Portola Pump Station, as well as related costs, including without limitation
26 those for the SAM Engineering & Construction Contracts Manager (collectively, “Infrastructufe
27 Division Costs”). The parties agree that expenditure of the Infrastructure Division Costs is
28 necessary 10 enable compliance with environmental and other laws governing SAM’s operations
and they therefore agree t0 cooperate in good faith to see that said FY 2017—201 8 Genera]
Budget is implemented expeditiously and without further delay arising from the dispute which
10. This stipulation shall be effective and binding upon the parties as ofthe date of
V
\DOOflONLhAbJMI—I
the last signature hereon. Nevertheless, thc parties jointly request the Court to order
1 l. The parties further agree that the public interest provides that [his stipulation may
be deemed to be SAM’S responsive pleading herein, which neither admits or denies the
allegations ofthe Complaint 0r any Cross-Complaint(s), and that SAM shall be among the
parties entitled to enforce the provisions of this stipulation in this action, and shall be a party
-—-
bound by the judgment rendered herein without the necessity to appear at conferences or trial,
provided that this stipulation is approved and ordered implemented by the Court.
WWW
'7
Dated: flag 74 £79 BOLD, POLISNER, MADDOW, NELSON & JUDsoN ,
mqamamw~o$mzmm3$5H5
By:.
David E. Schricker, Attorneys for Defendant
MONTARA WATER AND SANITARY DISTRICT
and they therefore agree to cooperate in good faith to sec that said FY 2017—2018 General
Budget is implemented expeditiously and without further delay arising from the dispute which
I
10. This stipulation shall be eficctivc and binding upon the parties as ofthe date of
the last signature hereon. Nevertheless, the parties jointly request the Court to order
\DOO-QQMLDJNH
11. The parties further agree that the public interest provides that this stipulation may
be deemed to be SAM’s r65ponsive pleading herein, which neither admits or denies the
allegations of the Complaint or any Cross-Complaint(s), and that SAM shall bc among the
parties entitled t0 enforce the provisions of this stipulation in this action, and shall be a party
bound by the judgment rendered herein without the n‘ecessity t0 appear at conferences or trial,
provided that this stipulation is approved and ordered implemented by the Court.
By:
Carl RA. Nelsen, Attorneys for Real Party In Interest
SEWER AUTHORITY MID-COAS’I‘SIDE
ooqcxmbuMi—oeoo-qoaGk—QSSZS
Dated:
Dated:
a 1/ [g 3
By; k
COLANTUONO, HIGHSMITH & WHATLEY, PC
By:
Jonathan Wittwer, Attorneys for Defendant
GRANADA COMMUNITY SERVICES DISTRICT
By: Md/MW
David E. Schricker, Attomcys‘dbr Defendant
MONTARA WATER AND SANITARY DISTRICT '
Budget is implemented expeditiously and without further delay arising from the dispute which
10. This stipulation shall be effective and binding upon the parties as 0f the date of
the last signature hereon. Nevertheless, the parties jointly request the Court t0 order
l 1. The parties further agree that the public interest provides that this stipulation may
be deemed to be SAM’S responsive pleading herein, which neither admits or denies the
allegations 0f the Complaint or any Cross-Complaint(s), and that SAM shall be among the
panies’entitled to enforce the provisions ofthis stipulation in this action, and shall be a party
bound by the judgment rendered herein without the necessity to appear at conferences or tfial,
provided that this stipulation is approved and ordered implemented by the Court.
By: V
Budget is implemented expeditiously and without further delay arising from the dispute which
10. This stipulation shall be effective and binding upon the parties as 0fthe date of
the last signature hereon. Nevertheless, 1he panics jointly request the Court to order
\DOOQQUI&DJNH
11. The partiés further agree that the public interest provides that this stipulation may
be deemed to be SAM’s responsive pleading herein, which neither admits or denies the
allegations ofthe Complaint or any Cross~Complaint(s), and Ihat SAM shall be among the
parties entitled to enforce the provisions 0f this stipulation in this action, and shall be a party
bound by the judgment rendered herein without the necessity to appear at conferences or trial,
provided that this stipulation is approved and ordered implemented by the Court.
By:
Carl PA. Nelson, Attorneys for R'ea! Party In Interest
SEWER AUTHORITY MID—COASTSIDE
By:
Michael G. Colantuono, Attorneys for Plaintiff
CITY OF HALF MOON BAY
NNNNNNMNNH
Jonathan. Wittwcr, Attorneys for Defendant
GRANADA COMMUNITY SERVICES DISTRICT
By: W¢¢W
David E. ‘Schricker, Attorneys "for Dpfendant
MONTARA WATER AND SANITARY DISTRICT
this week.
Having reviewed the foregoing Stipulation, and being informed by Counsel for Real
‘omQQm-PUJNH
Party In Interest Sewer Authority Mid-Coast that the governing bodies 0f each 0f the four local
public agencies that are party to the litigation met in closed session, approved the Stipulation,
and authorized their respective Counsel to sign the Stipulation on behalf of each agency,
The Court is ofthe opinion, and] so find, that the Partics’ joint request for 2m
implementing Court Order is an appropriate request for ancillary relief to maintain the status
quo, and thereby protect the Court’s jurisdiction, pending the outcome 0f this case. (See, e.g.,
People v. Black‘s Food Store (1 940) 16 Cal.2d 59, 62.) It is sufficiently related to the subject
matter of the action, as set forth in both the complaint and cross-complaints herein, and the terms
—-
and condjltions of the Stipulation, including those that seek t0 streamline andfor expedite the
litigation, appear to be fair and reasonable, and in the interests of the public served by the Parties.
mqampmm~oxooo35m3$gf35
Accordingly, and Good Cause Appearing, the foregoing Stipulation is hereby Approved
IT IS SO ORDERED
Q3. 3a NA a.
ANTHONY P. CONDOTI‘I, State Bar N0. 149886
-
ELED Exempt from Filing Fees
TCondotli@abc-law.com
AGflfeflxbment Code § 61 03
ATCHISON, BARISONE, CONDOTTI & KO ‘Z‘Hlégelcfi
333 Church Street
CLERK 0F THE co
Santa Cruz, California 95060
CsupsR coumogfgq
Telephonezz- (831) 423-8333 oum magma“;
Facsimile: (83]) 423-9401 BY 9
.
DEPUTY
Whalley.
12
CITY OF HALF MOON BAY
SUIIE
95945-2366
13
SUPERIOR COURT OF THE STATE OF CALIFORNIA
a Dylve.
14
FOR THE COUNTY 0F SAN MATEO
nghamlth
College
CA
‘15
17CU31692?
Volley.
Slana
Gross
16
CITY OF HALF MOON BAY, a municipal CASE NOTI'TCfVflBQQ-Z
Colan‘luonn.
corporation, Unlimited Jurisdiction
420
17
Plaintiff, (Case assigned to Hon. Robert Foiles)
18
20
GRANADA COMMUNITY SERVICES GRANADA COMMUNITY SERVICES
DISTRICT and MONTARA WATERAND DISTRICT’S CROSS—COMPLAINT FOR
21 SANITARY DISTRICT, DECLARATORY RELIEF
22 Defendants; Complaint Filed: July 11, 2017‘
”/3 g 23
and
24
SEWER AUTHORITY MJD-COASTSIDE,
25 f
17~cw-osogz
I
27
IIHII/IIHIWIMI/IIHHWH/I
28
Cross»CompIainant,
V.
and
10-
95945-7356
Cross-Complainant,
8£ 13
v.
Drlve.
CA
I4
HJghsmHh
CITY 0F HALF'MOON BAY,
College
Volley.
15 ‘
Cross-Defcndant,
Slant:
Gross
16
Colantuono.
420
and
17
18_
SEWER AUTHORITY MID-COASTLINE,
19 Rea] Party in Interest.
20
22
23
24
25
26
27
u
28
'
l 84332.4
z
[nu
.~
Plainfifi' City ofHalfMoon Bay (“City”) hereby answers the Cross—Complaint for
Declaratow Relief filed by Defendant Grafiada Communin Services District (“Granada” or “Cross-
I. The City avers the allegations in Paramph 1 consist cnfircly of legal theory,
conciusions, and argument requiring no response. However, to the extent that Paragraph 1 contains
any factual allegations, the City denies each and every allegation contained therein. The City further
avers the 197_6 Joint Exercise of Powers Agecment (“IPA”) referenced in Paragraph 1 is a document
I
10 (“Authority") is a public entity aeated by the IPA among the City, Montara Water and Sanitary
PC 11 Distn'ct (“Monlara), and Granada; that it is located in the County of San Mateo; and that it servas the
140
Wholley,
12 mid-coastside wastewater genefators in the HalfMoon Bay, El Granada, and Momma areas.‘Thc
SUHE
95945-7356
8‘
13 City admits the Authority is governed by a six—membcr board of directors comprised 0f two City
Drive.
nghsmlth
CA l4 councilmembers and two members of each ofMontara’s and Granada’s boards of directors. The City
Cohege
Volley.
15 further admits the Authority is a public entity separate from its member agencies and was crcaied
Slerra
Gloss
16 pursuant to Title 1, Difisiou 7, Chapter 5 of the Califomia Government Code (the “Joint Powers of
Colaniuono.
42D
17. Exercise Act”). The City further avers the IPA, as amended, is a document that Speaks for itself and
18 \is the best evidence ofits contents. Except as expressly admitted, the City denies each and every
19 allegation in Paragraph;
20 3. In answering Pamg‘aph 3, the City admim the Authority is a public entity crpated
21 pursuant to Tith 1, Division 7, Chapter S offhc California Government Code (the “Joint Powers 0f
-22 ExerciseAct”). The City further admits the City, Montara, and Granada entered into the IPA on
23 February 3, 1976, and that the JPA has been amended eight times to date. A tTue and correct copy of
24 the JPA and its eight amefidments are attached to the City’s Complaint in this action as ExhibitA,
25 with a compilation of those documents attached to the Complaint as Exhibit B. The City avers in
26 reSponsc to Paragraph 3 that the IPA and its amendments are documents that speak for themselves
27 and are the best evidence oftheir contents. The City avers the remaining allegations in Paragraph 3
28 consist entirely oflegal theory, conclusiom, and argument requiring no rmponse. To the extent
contained therein.
4. 1n answering Paragraph 4, the City admits the City, Montam, and Granada formed the
Authority pursuant to a 1976 IPA to deve10p, consmzct, and own a joint waste collection,
transmission, treaunent disposal, and management system for wastewater received from the separate
sanitary sewer collection systems owned by the City, Montara, and Granada. The City further admits
the Intertie Pipe System (“Intertie”) is a sewer force main and associated tanks, pumps, and
mechanical and electrical components 'that coaveys wastewater fiom Montara’s and Granada’s sewer
to‘
collection systems the Authority’s treatment plant in the City of Half Moon Bay. The City further
10 admits that Granada and Montara funded the portion of the Interfie’s consmlction costs not funded
PC 11 by state and federal grants. The City further avers in response to Paragraph 4 that the IPA, as
140
Whatlev.
l2 amended, is a document that speaks for itself and is the best evidence of its contents. Eiccpt as
SUHE
95945-7356
a 13 expressly admitted, the City denies each and every remaining allegation in Paragraph 4.
Drlvo,
nghsmlth
CA
14 5. The City avers the allegations in Paragraph 5 consist entirely 6flegal theory,
College
Valley.
15 conclusions, and argument requiring no response. However, to the extent that Paragraph 5 contains
Slam:
Gross
16 any factual allegations, the City denies each and every allegation contained therein. The City flirther
Colemuono.
420
17 avers the JPA, as amended, is a document that speaks for itsélf and is the best evidence o'fits
.
I
IS contents.
l9 6. The City avers the allegations in Paragraph 6 consist entirely of legal theory,
20' Paragaph 6
conclusions, a.nd argument requiring no response. However, to the extent that contains
21 any factual aUpgations, the City denieé each and every allegation contained therein. The City further fidh
22 avers the IPA, as amended, is a document that Speaks for itself and is the best evidence ofits
23 contents. The City funher avers that the Sfipfilation and Order Regarding Expenses and Assessments
24 of Sewer Authority Mid-Coastside, entered by this Coufi on September 13, 2017, is a document that
26 7. The City avers the allegafions in Pmag'aph 7 consist entirely of legal theory,
27 conclusions, and‘ argfiment requiring no rmpouse. However, to the extent that Paraguph 7 contains
28 any factual allegations, the City denim each and every allegafion contained therein. The City fin‘ther
2 '8‘-
.
TO DEFENDANT
1843324
v
avem the JPA, as amended, is a document that Speaks for itself and is the best evidence of its
contents.
8. The City avers the allegations in Paragraph 8 consist entirely of legal theory,
12. The City avers the allegations in Paragraph 12 consist entirely of legal theory,
[0 13. The City avers the allegations in Paragraph 13 consist entirely of legal theory,
pc 'n
conclusibns, and argument requiring no msponse.
140
Whatley.
12 14. The City aycm the allegations in Parag'aph I4 consist entirely oflegal theory;
SUITE
95945-7356
mghsmnh'ac
CA
14 15. The City avers the allegations in Paragaph 15 consist critirely of Iégal thepry,
College
.
Sleuc
Gloss
16 16. In rcspohse to Paragaph 16, the City admits that on February 3, 1976, the City,
Co‘lanmono.
420
I7 Montara, and Granada entered into the JPA to cr'eate the Authority. The City further admits that the
18 Authority is goyemed by a six—mefinber board .of directors comprised oftwo City councilmembers
19 and two members of each of Montaxa’s and Granada’s boards of directors. As to the remaining
20 allegations, the City avers the IPA, as amended, is a document that speaks for ifielf and is the best
.22 17. In response t'o Paragraph 17, ihe City avers the IPA and its amendments are
i3 documents that speak for themselves and are the best evidence of their contents. More specifically,
24 the City avers that the definition ofthe “Present Project," stated in the original IPA and thc June 21,
26 (Amendment One to the IPA) are documents that speak for themselves and are the best evidence of
27 their contents. The City funher avers the allegations in Paragaph 17 consist of legal theory,
28
3
PLAINTIFF CITY OF HALF MOON BAY‘S ANSWER
TO DEFENDANT GRANADA COWUNITY SERVICES DISTRICTS CROSS-COMPLAINT
[34831.4
-... .... . .
“1:5.
.4,
...
conclusions, and argument requiring no response. However, to the exter'lt that Paragraph 17 contains
H.
.......r....
any remaining factual allegations, the City denies each and every allegation contained therein.
13. In answering Paragraph 13, the City admits that, upon the 1'976 fomation ofthe
.w‘n.
2
Authority, plans for the secondary wastewater treatment and disposal system contained four
_:-_.u_l._..-.-
components, which were to be built in two Phases. The City admits that Section IV, para (B)(1)(a)
capacity righfs, consu'ucu'on costs, and operatjorl and maintenance expenses being
V
>
10 facilities, connecting the Montara and Granada systems Io é new ocean outfall,
.z...--....~..—._._..--t,
PC ll shared equally between Montara and Granada; (ii) An ocean outfall pipeline
140
Wholley,
and attendant pumping facilities, discharg‘ng the combined trmted efilucnts fiom
SUIIE
95945-7350
V 8. 13 the three member agcncies’ treafinent systems into the ocean adj aéent to the
Drive.
nghsmlih
CA
14 existing but presently inoperatiqualf Moon Bay outfall line, shar‘ed one—half
College
Volley.
15 (1/2) by Half M0011 Bay, one-qumtcr (1/4) by Montara and one~quarier (1/4) by
Slaua
Giuss
l6 Granada; (iii) A reclamation pipeline and attendant pumping facilities, to carry
Colantuono.
420
1'7 sccpndarily ueated efiluent fiom the treatinent plant at the Half Moon Bay'site
18 south to the golf course and adjacent agricultural and fioficxflfluél lands, and
20 The City further admits that the reclamation pipeline was never constructed. The City further admits
2] that the Intem'e consists of approximately 7.3 miles ofpipeline and four pump stations to collect and
22 transmit the flow ofwastewater created by Montarg and Granada for teatment and disposal. The City
23 further avers that the IPA and its amendments, which define the “Prweut Project” and its compon'ents
24 and phases, are documents that speak for themselves and are the best evidence of their contents.
254 Except as expressly admitted, the City denies each and every remaining allegation in Paragraph 18.
26 19. In r65ponsc to Paragraph 19, the City admits that the JPA, as amended, outlines
27 Phase 2 ofthc project, Which is presented as two alternatives — either a single plant (“one single
28 secondary activated sludge treatment plant located at the site 0f the em'sting Half Moon Bay
4
PLAINTIFF CITY OF HALF MOON BAY'S ANSWER
[84332.4
TO DEFENDANT GRANADA COWY
SERVICES DISTRICTS CROSS-COMPLAINT
'fififi'fi?"
Heatment plant facilities, and desigled to treat the combined flows fiom the individual collectiou
systems of the member agencies”), or three separate treatment plants in the City, Montara, and
u.
Granada, as outlined in the IPA and its amendments. The City further admits that the member
h:
’agencies chose the first alternative of a single plant. The City avers the JPA and its amendments are
14W.\_.‘_-—
documents that speak for themseres and aré the best evidence oftheir contents. Except as expressly
admitted, the City denies each and every remaining allegation i1] Paragmph 19.
20. The City avers the IPA and its amendments are documents that speak for themselves
and are the best evidence of their contents. Specifically, the City avers that the July 2, 1979
10 that speaks for itself and is the best evidence ofits contents. The City avem the remaining allegations
PC 11 in Paragraph 20 consist entirely of legal theory, conclusions, and argument requin'ng no prgnse.
140
WhoIley.
12 However, to the extent that Paragraph 20 contains-any factual allegations, the City denies each and
SUITE
95945-7356
nghsmflh
CA
l4 21 . The City avers the JPA and its amendments are documents that speak for themselves
Coilega
Valley.
15 and are the bwt evidence of their contents. The City avers the allegations in Paragraph 21 consist
i
Slano
Grass
16 entirely oflegal theory, conclusions, and argument requiring no responsé.
Caluntuono.
420
17 22. 1n answering Paragaph Zé, the Cify admits that, as of 2017, the flow aflocafions for
I
I8 member agencies consisted ofroughly 52 percent (City), 26 percent (Granada), and 22 percent
19 (Montara). The City further admits that the IPA provides {hat an annual General Budgtt shall be
20 prepared by the Authority and submitted to the govemjng bodies of the member agencim for
'21
approval, and specifias that final approval by the Authority shall require the prior consent of all
22 member agencies. The City further admits that, under the IPA, a member agency’s share ofthe
23 obligation to fund the Authority’s general fund is based 0n its share of flows to the Authon'ty’s plant.
24 The City further admits that the Authority operates sewer infi’astmcture under its control pursuant to
25 the IPA and direction 0fthe Authority’s board As to these and the remaining allegations, the City
26 further avers that the JPA and its amendments am documents that speak fo'r themselves and are the
27 best evidence 0ftheir contents. As'to any remaining factual allegafions, the City denies each and
5
PLAINTEF CITY OF HALF MOON BAY‘S ANSWER
TO DEFENDANT GRANADA COWUNTI‘Y SERVICES DISTRICTS CROSS-COMPLAINI‘
l 84831.4
23. The City avers the allegations in Paragraph 23 consist enn'rely of legal theory,
conclusi'ons, and argument requin’ng no response.- However, to the extent that Paragaph 23 contains
any factual allegations, the'City deniescach and every allegation contained therein.
24. The City avers that the JPA and its amendments, as well as the June 12, 2017 Staff
Report for the Authon'ty referenced in Paragraph 24, arc documents that speak for themselves and
are the best evidence oftheir cements. The City avers the remaining allegations in Paragaph 24
consist entireiy oflcga] theory, conclusions, and argument requiring no response. Howaver, t0 the
extent that Paragraph 24 contains guy factual allegations, the City denim each and every allegation
contained therein.
.
10 25. The City avérs that the JPA and its amendments, specifically including t‘he July 2,
PC
11 1979 Ageement Amending the Agreement Creating the Sewer Authority Mid—Coastside referenced
140
Whatley. 12 in Paragraph 25 arc documents that speak for themselves and arc the best evidence oftheir contents.
SUHE
95?45-7356
8:
13 The City avars the remaining allegations in Paragraph 25 consist enfirely of legal theory,
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CA
14 conclusions, and argument requiring no rwponse. Howgver, to the extent Paragaph 25 contains any
College
Volley.
15 factual allegations, the City denies each and ever allegation contained therein.
.
1’6
Slerro
Gross
26. In answering Paragraph 26, the City admits that since the creation of the Aufiuoritfy,
Colantuono.
420 ha‘s‘
1? the City funded many projects associated with the Authority, and that it has gone above and
18 beyond its legal obligations as a member of the Authority. The City avers the allegations in
19 Paragaph 26 consist entirely oflegal theory, conclusions, and argument requiring no response. The
20 City further avers the 2017—201 8 preposed General Budget, as well as the partics’ Stipulation and
21 Order Regarding Expenses and Assmsmenfis of Sewer Authority Mid—Cpastsi‘de entered by this Court
0n September 13, 201 7 are documents that spéak for themselvm and are the bést evidence oftheir
23 contents.
'
24 27. lg auswbring Paragraph 2’7, the City admits that the JPA requires SAM to prepare an
25 annual Genera] Budget and to submit it to the governing bodies of the member agencies for
26 approval, and Specifiw that final approval by the Authority requires the prior censent of all member
27 agencies. The City further avers that the IPA and its amendments, as they define the process of
28 submitting and obtaining approval ofthe General Budget, are documents that speak for themselves
6
PLAINTIFF CITY OF HALF MOON BAY’S ANSWER
TO DEFENDANT GRANADA COMMUNITY SERVICES DIS'I'RICT’S CROSS—COMPLAINT
1848314
and arc the best evidence of their contlen.ts. To the extent that Paragaph 27 contains any additional
factual allegations, the City denies each andcvery allegation centained therein.
28. In answering Paragraph 28, the City admits the allegations in the first and second
sentences of Paragraph 28. In response t0 the third and fourth sentenpes of Paragraph 28, the City
alleges the proposed General Budgets for fiscal years 2016—2017 and 20174018 are documents that
speak for themselves and are the best evidence of their contents. The City further aversthe
Stipulation and Order Regarding Expenses and Assessments of Sewer Authofity Mid~Coastside,
entered by this Court on September 13, 2017, is a document that speaks for itself and is the b&t
evidence of its contents. The City avers the remainder of the allegations in Paragraph 28 consist 0f
Pc
Il 29. The City admits that on June 12, 2017, the Authority Board submitted t0 each
140
wnuney,
[2 member agency for approval a General Budget for Fiscal Year 2017—201 8, that Granada and
SUFTE
95945-7366
a 13 Montara approved the Genera] Budget as presented, but the City only approved a portion of the
Dlive,
CA 14 General Budget, specifically declining to approve. the portion of the General Budget characterized as
ngriemnn
College
Volley.
15 the “Infiastructure Division.” The City avers that the Stipulation and Order Regarding Expenses and
Sleno
Gross
16 Asséssmcnts of Sewer Authofity Mid—Coastside, aufered by this Court on September 13, 201 7, is a
Colonruono.
19 30. The City avers the JPA and its amendments, specifically in how they define a “project
20 budget,” are documents that speak for themselves and are the bwt evidence’oftheir co'ntents. The
21 remainder ofthe allegations in Paragraph 30 consist entirely .of Iega} theory, conclusions, and
22 axgument requiring no re5ponse. Howevgr, to thepxtent that Paragaph 30 contains any factual
23 allegations, the City deniw each and every allegation contained therein.
24 31. The City avers the allegations in Paragraph 31 (consist entirely oflegal theory,
25 conclusions, and argumant reqfiin'ng no response. However, to the extent that Paragraph 31 contains
26 any factual allegations, the City denies each and every allegation contained therein. The City further
27 avers the JPA and its amendments axe documents that speak for Themselves and are the best evidence
28 of their contents.
,7
'
PLADITIFF CITYOFHALFMOONBAY’SANSWEK
TO DEFENDANT GRANADA COMMUNITY SERVICES DISTRICTS CROSS-COMPLANI‘
1 84832.4
32. The City avers the allegations in Paragraph 32 consist entirely oflegal theory,
33. lu answering Paragraph 33, the City admits the City, Montara, and Granada formed
the Authority pursuant to a 1976 IPA to develop, construct, and own a joint waste collection,
h‘ansmission, treatment disposal, and management system for wastewater received fiom the separate
sanitary sewer collection systems owned by the City, Montara, and Granada. The City avers the IPA
I
and its amendments, by which the Authority was established and its functions defined, are
documents that speak for themselves and are the best evidence of their contents.
34. 1n answering Paragraph 34, the City admits that the IPA, as aménded, outlines
Phases I and 2 ofthe project. The City avers that the JPA and its amendments are doauments that
PC
Speak for themselves and arc the best evidence oftheir contents.
240
Whoiley.
3S. In answering Paragaph 35, file City admits that the IPA, as amended, outlines
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95946-7356
a 13 Phases 1 and 2 of the project. The City avers that the IPA and its amendments are documents that
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nghsmllh
CA
14 Speak for themselves and am the best evidence of their contents. The City avers that the remaining
College
Volley.
15 allegations in Paragraph 35 consistpnfirely of legal theory, conclusions, and érgument requiring no
Sieua
Gloss
16 .rwponse. Howéver, to the extent that Paramph 35 contains any factual allegations, the Cify denies
Colaniuono.
420
17 each and every allegation contained therein.
18 36. The City avers the'allegations in Paragraph 36 consist entirely of legal theory,
'
19 conclusions, and argument requiring no response. However, to the extent that Paragraph 36 contains
20 any factual allegations, the City denies each and every allegation contained therein. The City further
21 avers the JPA, a_s amended, is a document that speaks. for itself and is the best evidence of its
‘
22 contents.
23. 37. In answering Paragraph 3'7, the City adm'its that, since the creation of the Authority,
24 the City has funded projects associated with the Authority, and that it has gone above and beyond its
25 legal obligations as a member _of the Authon'ty. The City avers the allegations in Paragraph 36
27 extent that Paragaph 37 contains any factual allegations, the City denies each and eyery allegadon
28 in Paragraph 37.
8
PLAINTIFF CITY OF HALF MOON BAY‘ S ANSWH
TO DEFENDANT GRANADA COMMUNITY SERVICES DISTRICT" S CROSS- COWLAINT
1848314
38. In answering Paragraph 38, the City admits thal, on J1me 12, 2017, the Authority,
Granada and Montara' approved the Genera] Budget as presented, but the City only approved a
portion of the General Budget, declining to approve the portion ofthe General Budget characterized
as the “Infi‘astrucmreDivision.” The City avers the Stipulation and Order Regarding Expenses and
Assessments 0f Sewar Authon'ty Mid-Coastsids, entered by the Court on September 13, 2017, is a
document that speaks for itself and is the best evidence of its contents. The City otherwise denies the
39. The City avers the allegations in Paragraph 39 consist entirely of legal theoxy,
conclusions, and argument requiring no response. However, to the extent that Paragraph 39 contains
10 any factual allegations, the City denies each and every allegation contained therein. The City fmther
PC I] aVers the IPA, as amended, is a document that speaks for itself and is the best evidence ofits
140
Whailay.
[2 contents.
SUITE
95945-7356
E:
l3 40. The City avers the allegations in Paragraph 40 consist entirely of legal theory,
Dlrve.
CA l4 conclusions, andl argument requiring n0 response. However, to the extent that Paragraph 40 contains
HIghsmllh
College
Volley.
15 any factual allegations, the City denies each and every allegation contained thereil}. The City fiJIflJer
Sleua
Gross
l6 avers the IPA, as amended, is a dociuncnt that speaks for itself and is the best evidence 0f its
Colamuono.
420
17 contents.
18
19 AFFIRMATIVE DEFENSES
20 Without admitting any aflégations in the Cross-Complaint or assuming the burden of proof
21 for any 0fthe following claims, defenses, Orlissues, the City is informed and believes? and upon such ~A§7
25 1. ‘
AS A SEPARATE DEFENSE, neither the Cross-Complaint nor any cause of action
26 in the Cross~Complaint states facts suflicient to constitute a cause of action 01' finding against the
27 City.
28
9
PLAINTIFF CITY OF HALF MOON BAY’S ANSWER
T0 DEFENDANT GRANADA COMMUNITY SERVICES DISTRJCI"S CROSS- COMPLATNT
1843314
SECOND AFFIRMATIVE DEFENSE
(Attorney Fees Not Recoverable by Cross-
Complainant)
that constitute a basis for an award of costs of suit against the City and in fivor of Cross-
Complainant.
PC
ll FOURTH AFFIRMATIVE-DEFENSE
140
CA 14 doctrine of waiver and/or by action of law 0r conduct fi'om the claims as alleged in the Cross-
nghsmlm
College
Volley.
I5 Complaint.
'16
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420
I7 ,(No Equimble Relief)
19 any relief in equity because the balance ofbarms does not wanant equitable relief.
23 equitable doctrine ofunclcan hands and any other applicable equitable doctrines.
24
25
26
’27
28
IQ
. PLAINTIFF CITY 0F HALF MOON BAY’S ANSWER
TO DEFENDANT GRANADA COMMUNITY SERVICES DISTRICTS CROSS-COMPLAINT
1848314
SEVENTH AFFIRMATIVE DEFENSE
(Additional Defenses)
7. The City has insufiicicnt information and knowledge at present on which to form a
belief as to whether it may have additional, as yet unstated, defenses to this suit. The City reserves
the right Io assart additioml defenses if fimher invesfigafion indicales such afiinnative defenses
would be appropriate.
2. That the Court issuejudgmeut fillly in favor of the City on the Complaint;
PC
3. That the Cross—Complaint be dismissed with prejudice and judgment entered in favor
140
wnollev.
of the City;
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95945-7356
an That the Court award'the City its costs, attorney fees, and related cxpensesa
DHve.
nghsmlth
CA That Cross-Complainant take nothing by this action; and
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Volley.
That the Court grant such other relief as the Court deems just and proper.
Sierra
Groas
Coldniuom.
420
17' DATED: September 28, 2017 ANTHONY P. CONDOTTI
City Attorney, City 0f Half Moon
'
Bay
18
COLANTUONO, HIGHSMITH &
l9 WHATLEY, PC
20
21
gwwo
MICHAEL G. COLANTUONO
A ca)
22 PAMELA K. GRAHAM
EDUARDO JANSEN
23
24
25
26
27
28
l 1
I am employed in the County ofNevada, State 0f California. I am over the age of 18 and not
a party to the within action. My business addrws is 420 Sierra College Drive, Suite 140, Grass
On September 28, 2017, I served the document(s) described as
Valley, California 95945-5091 .
140
practice of collection and processing correspondence for mailing. Under that practice it would be
Whofley. 12 deposited With the U. S. Postal Service on that same day with postage thereon fully prepaid at Grass
Valley, California, in tbs ordinary course of business. I am aware that on motion of the party served,
SUITE
959464356
8L 13 service is presumed invalid if the postal cancellation date or postage meter date ls more than one day
Drive.
College
I declare under penalty ofperjury under the laws of the State of California that the above 13
valley,
15
r
true and oon‘cct.
Slan‘o 16'
Grass
420
l7
18 fl/
AsmeyA Lloyd
19
fl
20
’21
22
24
25
25
27
28
PROOF OF SERVICE
134332.4-
PROOF 0F SERVICE
City ofHab'Moon Bay Granada Community Services District, e!
v. a1.
Whatley.
12
SUI‘IE
345 Lorton Avenue, Suite 301 2125 Oak Grove Road, Suite 21 0
14
nghsmllh
CA
Burlingame, CA 940] 0 Walnut Creek, CA 94598
College
Telephone: (65 0) 3 48-5195 Telephone: (925) 933-7777
Volley.
15
Facsimile: (650) 239-1207 Facsimile: (925) 933-7804
Slena
16 Email: fitzgeraldlaw@sbcglobal.net Email: cnelson@bprnnj.oom
Gloss
‘ "
Colonluono. Attorneysfor Defendant Email: tryan@bpmnj.com
420
17 Montara Water and Sanitary District Email: cjudson@bpmnj.com
Email: snagle@bpmnj.com
13
Attomcysfor Real Party in Interest
19
Sewer Authority Mid— Coastline
20
21
22
Atchison, Bansone Condom & Kovacevich
333 Church Sheet
" " . Mg ..
;
v_
26
City oqulfMgon _Bay
27
28
2
PROOF OF SERVICE
$48314
\\
LRndimMCamen.flIcCIukofflieSupu-lorfmmoflhonbow
entitled County. dnhcreby willylhmlhtf nlnglnuflxll.u-uc
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QR? YEENAL
ANTHONY P CONDOTTI, State Bar No. 149886 _ Exempt from Filing Fees
TCondotti@abc-law. com
__ Government Code § 6103
City Attorney, City of Half Moon Bay
ATCHISON, BARISONE, CONDOTTI& Eng
333 Church Street
Santa Cruz, California 95060
SCANNED
Telephone: (83 1) 423-8383
20:7 ctr -3 A Cr ub
Facsimile: (831) 423—9401
140
Whau'ey‘.
l3
a Dnve. SUPERIOR COURT OF THE STATE OF CALIFORNIA
l4
Highsmnh
CA
FOR THE COUNTY 0F SAN MATEO
College
Valley.
15 17CU316927
Corantuono.
Slerlo
Grass
16
CITY OF HALF MOON BAY, a municipal CASE NO. m092
420
corporation, Uhlimired Jurisdiction
19
V.
"
6’”)
[PW] ORDER GRANTING CITY
OF'HALF MOON BAY's MOTION FOR
20
GRANADA SANITARY bISTRICT,‘ ‘
Defendants
23
Healing Date: September 19, 2017
24 a
and Time: 9:00 am.
Dept: 16 (Law and Motion).
'25 SEWER AUTHORITYJMJD- COASTSIDE,
»
Trial Date: None set
26 Real Pa'rt'y In” Interest. 17— CIV- 03092
UAH
27 Order After Hearing
28
Fifim1unmuummnm
Cross-Complainant,
V.
and
10
95945-7356
Cross—Complainant,
13
& Drive,
v.
CA .14
nghsmnh
College
CITY OF HALF MOON BAY,
Valley.
15
Cro’ss—Defcndant,
Slerro
Grass
16
Colantuono.
£120
and
17
18
SEWER AUTHORITY MID—COASTLINE,
20
21
22
23
24
25
26
27
28
Mandatory Change of Venue pursuant to Code of Civil Procedure section 394 hereby submits this
On September 18, 2017, the Honorable Richard H. Dubois 0f Department 16, the Law and
Motion Department, of the above—referenced Court located at 400 County Center, Redwood City, CA
94063, issued a tentative ruling granting the City of Half Moon Bay’s Motion for Mandatory
Transfer of Venue (CCP § 394). The tentative ruling was uncontested by any 0f the parties; no party
appeared for oral argument on the Motion scheduled for hearing on September 19, 201 7. The Court
ordered the City to prepare, circulate, and submit a written order reflecting this Court’s ruling for the
PC
11 0n September 21, 2017, the City circulated by email and FedEx the proposed order to
140
Whatley.
12 counsel for Defendants Montara Water and Sanitary District (“Montara”) and Granada Community
SUITE
On
95945-7356
8k
l3 Services District (“Granada”), and Real Pany in Interest Sewer Authority Mid-Coastside.
Drlve,
nghsmllh
CA
14 September 25, 2017, the City sent an email to counsel for Montara and counsel for Granada
College
Volley.
15 confirming that Defendants had received the proposed order and that they had no objections or
Slerro
Gross
16 comments to its form.
Colantuono.
18 Granada received the proposed order and that it was approved. Also on September 26, 2017, counsel
19 for Montara, Ms. Christine Fitzgerald, confirmed that Montara had received the proposed order and
20 that it was approved. As 0f the daie of this filing, the City has received no other comments, and
21 hereby submits the [Proposed] Order for the Court’s review and signature.
26 fldmzpfl /fl7\19 W
MICHAEL G. COLANTUONO
27 PAMELA K. GRAHAM
EDUARDO JANSEN
28 Attorneys for Plaintiff
CITY OF. HALF MOON BAY
I
Venue (CCP § 394). I316 tenfaiive ruling was uncontested by any ofthe parties; fio party appeared
for oral argument on the Motion scheduled for hearing on September 19, 2017. Having considering
the papers and records filed by the City ofHalf Moon Bay, Defendants Montara Water and Sanitary
District (“Montara”) and Granada Community Services Dishict (“Granada”), and Real Party in
Whmley. 12 essentially have n0 dispute over whether this case should be heard before a neutral arbiter pursuant
SUITE
95945-7356
8s
13 to Code Civ. Proc. § 394. The appointnent of é neutral judge by the Judicial Council, as well as the
Drive,
nghsmllh
CA
14 special setting of any future hearings and trial will necessarily bring with it some amount of delay.
College
Volley,
15 With the exception of counsel for Real Party in Interest SEWER AUTHORITY, the parties’ counsel
Slerrc
Grass
16. are all located within the Bay Area, and it would appear that Santa Clara would be the most logical
Colamuono.
420
17 choice of venue.
18 IT IS SO ORDERED.
19
20
21
DATED: ?’ 27(29/7 6W MW“
Honorable Richard H. Dubois
22
23
24
25
26
27
28
2
[PROPOSED] ORDER GRANTING CITY OF HALF MOON BAY'S
MOTION FOR MANDATORY TRANSFER OF VENUE
1849602
PROOF OF SERVICE
City ofHalfMoon Bay v. Granada Community Services District, er a1.
I am employed in the County ofNevada, State of Califomia. lam over the age of 18 and not
a party to the within action. My business address is 420 Sierra College Drive, Suite 140, Grass
Valley, California 95945—5091. On September 27, 2017, I served the document(s) described as
ORDER GRANTING CITY OF HALF MOON BAY'S MOTION FOR
[PROPOSED]
MANDATORY TRANSFER 0F VENUE (CCP § 394) on the interested parties in this action
addressed as follows:
PC
ll
envelope was mailed with postage thereon fully prepaid. I am readily familiar With the firm’s
140
practice of collection and processing correspondence for mailing. Under that practice it would be
Whotley.
12 deposited with the U.S. Postal Service 0n that same day with postage thereon fully prepaid at Grass
Valley, California, in the ordinary course of business. I am aware that 0n motion of the parry served,
SUITE
95945-7356
8c 13 service is presumed invalid if the postal cancellation date or postage meter date is more Than one day
Dnve.
College
I declare under penalty of pexjury under the laws of the State of California that the above is
Volley,
15
true and correct.
16
WWK
Sierra
Gloss
Colantuono.
Executed on September 27, 2017, at Grass Valley, California.
420
17
18
19
20
21
22
23
24
25
26
27
28
3
[PROPOSED] ORDER GRANTING CITY OF HALF MOON BAY‘S
MOTION FOR MANDATORY TRANSFER OF VENUE
[34960.2
PROOF 0F SERVICE
City ofHaZfMoon Bay v. Granada Community Services District, et al.
Whatlev.
12
SUIIE
95945-7350
Chrisfine C. Fitzgerald CharlesRA. Nelson
8L 13 Fitzgerald Law Ofices Maddow, Nelson & Judson
Bold, Polisner,
Drive.
345 Lorton Avenue, Suite 301 2125 Oak Grove Road, Suite 210
l4
nghsmlth
CA
Burlingame, CA 94010 Walnut Creek, CA 94598
College
Telephone: (650) 348—5 1 95 Telephone: (925) 933—7777
VOHQY.
15
Facsimile: (650) 239—1207 Facsimile: (925) 933—7804 I
Sierra
Gross
Email: fitzgeraldlaw@sbcglobal.net Email: cnelson@bpmnj.com
Colantuono.
Attorneysfor Defendant Email: tryan@bpmnj .com
420
17 Montara Water and Sanitary District Email: cjudson@bpmnj .com
Email: snagle@bpmnj.com
18
Attorneysfor Real Party in Interest
19
Sewer Authority Mid-Coastline
20 I
Courtesy Copy; ,
21 Anthony P.Condom :ity Attorney
City of Half Moon Bay -
22
Atchison‘, Barisone, Condotti & Kovacevich
23
333 Church Street-r ‘
-
Aftorneysfor Plaintiff
26 _,..-.c .. ..... ... .,-. . . .."~
afHalfmoan
.
Gig)
. 4..
27
28
4
[PROPOSED] ORDER GRANTING CITY OF HALF MOON BAY‘S
MOTION FOR MANDATORY TRANSFER OF VENUE
1849602
‘
iyaa 83.. ,
.
.
_
awfully qgmpared same wiLh the ozynai. ‘ .
Bid Superior
Coy
‘
U, t ad
ty of San Mateo
r. ‘ Case Number: 17-CIV-03092
‘
MinuteOrder 1?CV31695’37
CITY OF HALF MOON BAY VS. GRANADA COMMUNITY SERVICES 17-CIV-03092
DISTRICT, et al
Minutes
Journals
-
No appearance by any parties herein or their counsel of record.
Plaintiff CITY OF HALF MOON BAY's Motion t0 Transfer Venue is GRANTED pursuant t0 Code Civ. Proc.
The parties essentially have no dispute over whether this case should be heard before a neutral arbiter
pursuant t0 Code Civ. Proc. 394. The appointment of a neutral judge by the Judicial Council, as welI as
the special setting 0f any future hearings and trial will necessarily bring with it some amount 0f delay.
With the exception 0f counsel for Real Party in Interest SEWER AUTHORITY, the parties' counsel are all
located within the Bay Area, and it would appear that Santa Clara would be the most logical choice 0f
venue.
If the tentative ruling is uncontested, it shall become the order of the Court, pursuant to CRC Rule
3.1308(a)(1), adopted by Local Rule 3.10. If the tentative ruling is uncontested, moving party is directed
to prepare, circulate, and submit a written orde’r reflecting this Court's ruling verbatim for the Court's
signature, consistent with the requirements of CRC Rule 3.1312. The proposed order is to be submitted
‘
Cqu’rtroom
'
2] -
Patrice
From:
Sent:
LODGED WHTH THE C1
Deang
_ {T
Cari Nelson
J
<cnelson@bpmnj.com>
-
Ms. Deang-
lam counsel for the Sewer Authority Mid—Coastside, Real Party in Interest in the above matter. When Iwas in Chambers
this afternoon, Judge Buchwald asked that | send an e—maiI t0 you confirming the representation that | had made t0 him
regarding approval of the stipulation by the governing bodies of each of the four local public entities that are
participating in this litigation. You will note that l have ”carbon copied" all counsel listed on the respective pleadings
filed herein.
This confirms that the City Council of Plai‘ntiff Half Moon Bay, and the respective Boards 0f Directors of Defendants
Granada Community Services District and the Montara Water 8: Sanitary District each approved the stipulation in closed
session, authorizing their respective counsel t0 sign the stipulation on behalf 0f each agency.
Similarly, the Board of Directors of Real Party in Interest'Sewer Authority Mid—Coastside (SAM) formally approved the
stipulation in open session and ratified my signature on the stipulation on behalf of SAM.
Thus, each governing body intended, as specified in Paragraph 8, that SAM operate pursuant to the Fiscal Year 2017-
2018 Budget and issue monthly invoices, which Plaintiff and Defendants shall pay, and that this Court would ”order
implementation of this stipulation” as specified in Paragraph 10.
Ca r|
Carl P. A. Nelson
'
-
1@E%VE Q
COUNTY
[:EMATE—O
DEPTolg
Jonathan Wittwer, SBN 058665
William P. Parkin, SBN 139718
Nicholas Whipps, SBN 306865
WITTWER PARKIN LLP ‘
13
CITY OF HALF MOON BAY, a municipal Case No.2 17CIV03 092
14 corporation, . Unlimited Jurisdiction
17
GRANADA COMMUNITY SERVICES
18 MONTARA WATER AND
DISTRICT and
SANITATION DISTRICT,
19
Defendants,
20
21
23
SEWER AUTHORITY MID-COASTSIDE,
G‘a’wl 0935)!
24
GRANADA COMMUNITY SERVICES '
4kg my
‘
39
4
DISTRICT, a 6M?”
25 .
g I
/ Ci tg I
26 Cross-Complainant,
/
27
VS.
28
‘Mfl LQ/
CITY OF HALF MOON BAY, a municipal
cbrporation,
Cross-Defendant,
INTRODUCTION
1. GCSD brings this cross-complaint seeking a declaration from this Court that the .
City of Half Moon Bay (“City”) remains bound to the terms 0f a contract into which it
operating in the County 0f San Mateo and serving the Mid—coastside wastewater generators in
ooqoxmpmhswoxooouoxmbwtura
the Half Moon Bay, El Granada and Montara areas. SAM operates one consolidated sewer, or
NMNNNNNMNHHH~HHH-~
wastewater, system: GCSD, Montara Water and Sanitary District (“MWSD”), and the City
3. The Member Agencies created SAM in 1976 under the Joint Exercise 0f POWers
Act, Govemment Code § 6500 et seq. On Februaly 3, 1976, the Member Agencies entered into
the first version ofthe Joint Exercise ofPowers Agreement (“‘JPA” 0r “Agreement”) in the spirit
4. SAM sought and obtained federal and state funding t0 construct, own and Operate
an interconnected wastewater system, comprised 0f the following componefits: the SAM Intertie
collection systems within their respective jurisdictions, and subsequently transmit this
wastewater t0 the SAM IPS collection and transmission system t0 be treated at the wastewater
treatment plant. Treated effluent is then discharged through the ocean outfall. As a single,
\JQM
consolidated wastewater system, all Member Agencies utilize and benefit from each system
component. The Member Agencies created SAM with this primary concept and goal in mind.
5. In June 2017, after nearly four decades of continual operation, the City decided
that work on segments of the SAM [PS component 0f the SAM Sewer System had transformed
into a “new project,” although the SAM IPS has not changed in shape, size, 0r capacity. In a
reversal of its decades-long practice and in violation 0f the binding terms of the JPA, the City has
now taken the position that it is n0 longer responsible t0 fund work performed on the SAM ES,
insisting that the other SAM Member Agencies must now shoulder the City’s portion 0f this
burden.
6. ‘
The City cemented its position to no longer fund SAM [PS work by refusing t0
approve the 2017—201 8 SAM General Budget as it was submitted t0 each Member Agency. This
created an unnecessary funding crisis. Contrary t0 the City’s current legal position, it remains
liable for and responsible t0 fund past, present and future work 0n the SAM IFS, a component 0f
the consolidated SAM Sewer System all Member Agencies successfully created, and have
collectively maintained for nearly four decades.
7. Although the City contends in its Complaint for Declaratory Relief that it seeks
this Court’s assistance in intetpreting the JPA, in truth the City now seeks t0 re—write this
foundational document in an attempt to avoid its binding terms. In this context, GCSD brings
suit t0 seek an affirmative ruling from this Court that the City continues t0 share responsibility
for the SAM IPS, as all Member Agencies agreed in choosing a consolidated SAM Sewer
System with federal and state funding rather than utilizing the then-existing three separate
treatment facilities 01‘ siting the consolidated SAM treatment plant in E1 Granada or Montara.
fonh herein.
public agency originally duly organized in 1958 under the Sanitary District Law 0f 1923, Health
and Safety Code section 6400, et. seq, and now existing as reorganized under the Community
Services District Law, Government Code section 61000 et seq, with its principal office in El
10. Cross—Defendant CITY OF HALF MOON BAY is a city located in the County of
San Mateo, California.
all relevant times herein, a joint powers authority organized under the Joint Exercise of Powers
Act, Government Code §6500 et seq, and created by its Member Agencies now known as the
revised by Amendments 1 thI-ough 8. The principal office 0f the SEWER AUTHORITY MID-
COASTSIDE is located in the CITY OF HALF MOON BAY, within the County 0f San Mateo,
California.
Procedure § 1060 er seq. because GCSD seeks a declaration from this Coun regarding the rights
and duties 0f the City and GCSD as Member Agencies t0 the JPA.
14. Venue for this action properly lies in the County 0f San Mateo Superior Coun
because the City, GCSD, MWSD and SAM are located in this County, and most, if not all acts
leading t0 this lawsuit occurred in this County.
.p 16. GCSD, MWSD and the City f01med SAM on February 3, 1976 by entering into
the JPA. The Member Agencies desired t0 form SAM t0 create “a single representative
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managing, operating and controlling facilities for the joint collection, transmission,
treatment and disposal of wastewater” within the Half Moon Bay water basin. (JPA preamble
10 see, Complaint in Exhibit A). The JPA created a SAM Board 0f Directors. Each Member
11 Agency has two seats on the SAM Board of Directors, with the City having two votes per séat
12 and GCSD and MWSD each having one vote per seat.
13 17. At the time 0f SAM’S inception, the Member Agencies were faced with two
14 options t0 proceed with the development 0f a joint wastewater collection, treatment, and
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16 wastewater treatment system” as shown in the February 3, 1976 IPA (Complaint Exhibit A).
19 form 0f“proposals for construction ofjoint collection systems, trunk and interceptor lines,
20 treatment pIan[t]s, and disposal systems.” (Complaint Exhibit A, JPA § IV(A)). This planning
21r focused 0n “the full consolidation 0f sewage treatment facilities,” which the February 3, 1976
22 JPA and all reievant subsequent amendments refer to as the “Present Project.”
23 18. SAM consfi’ucted the Present Project in two phases. Phase I 0f the system
24 consisted 0f three components with “capacity rights, construction costs and operation and
25 maintenance expenses being shared as specified” until these costs were reallocated as
26 contemplated in Phase II. (Complaint Exhibit B, JPA § [V(B)(1)(a)). These three Phase I
27 components were (i) the SAM IPS, with initial construction costs “shared equally between
28 [MWSD] and [GCSD]”; (ii) an ocean outfall pipeline, shared one-halfby the City, and one-
quarter by MWSD and GCSD, each, and (iii) a proposed, but never constructed, wastewater
reclamation pipeline, “solely assigned” to the City. (Complaint Exhibit B, JPA § IV(B)(1)(a)(i)-
\JQUW-Ihu.)
(iii)). The SAM [PS consists 0f approximately 7.3 miles ofpipeline and four pump stations t0
collect and transmit the flow of wastewatcr for treatment and diSposal.
19. Phase II of the Present Project consisted of the construction of the final
component 0f the SAM Sewér System, which contemplated one 0r more wastewater treatment
facilities. For Phase II, SAM considered constructing either a single plant t0 be located at the
site of the then-exist'mg Half Moon Bay treatment plant, 0r three separate plants, located in Half
Moon Bay, Montara and El Granada (which plants were already in existence). The Member
Agencies chose t0 construct a single consolidated treatment plant, t0 which SAM connected the
then—existing, SAM—owned SAM IFS.
20. Phase II Reallocation. Under the temls 0fthe IPA, as reflected in the July 2,
1979 JPA Amendment, and upon the SAM Board 0f Directors’ decision to construct a single,
consolidated wastewater treatment plant, the Member Agencies agreed t0 reallocate the costs
and expenses of the SAM Sewer System, thereby terminating the previous Phase I cost
allocations. (Complaint Exhibit B, IPA § IV(B)(4)). The Member Agencies agreed to share the
total expenses of operation and maintenance of all the components of the SAM Sewer System
“based 0n flows into the single consolidated treatment plant facility,” and that “capacity rights
consistentrwith the treatment plant facility allocations.” (Complaint Exhibit B, IPA § N(B)(4)).
I(d)). The California Coastal Commission determined the treatment plant facility allocations to
be 50% (City), 30% (GCSD),-and 20% (MWSD) based 0n the “service needs” of each Member
Agency, as reflectedjn the Local Coastal Program in effect in 1979 (“LCP Allocation”). Thus,
'
“Construction,” as referenced throughout this Cross-Complaint, includes repair and
replacement, as defined in the JPA.
the Phase II reallocation explicitly governs operations and maintenance, including construction
costs, for all of the completed SAM Sewer System components, including the SAM IPS, in the
General Budget. Similarly, in the event SAM incurs any liabilities, the Agreement sets Member
Agencies’ respective contributions t0 pay for these liabilities in proportion t0 each Member
Agency’s flows into the wastewater treatment plant. (Complaint Exhibit B, JPA § VIII(C)). In
reliance upon this reallocation of costs and expenses, GCSD and MWSD did not proceed with
constructing either a single consolidated wastewater treatment plant in El Granada 0r Montara, 01
21. SAM’S stated goal under the terms ofthe IPA was, “[i]n the event the single
treatment plant concept is selected as the fourth component under Phase II, it is the intent 0fthe
Authority tofurther consolidate sewerfunctions within the service areas 0fthe three member _
agencies, and t0 establish a uniform system ofsewer service charges, levied throughout the entire
jurisdiction ofrhe Authority, with which to pay expenses ofoperations and maintenance.”
22. SAM owns and operates all components 0f the SAM Sewer System, including the
?SAM TPS. SAM receives its revenue from JPA assessments paid by its member agencies.
Consistent with the terms of the Phase II reallocation, these assessments are calculated based 0n
each Member Agency’s percentages 0f wastewater flows into the SAM wastewater treatment
plant and the LCP Allocation. As of 2017, the flow allocations consisted of 52 percent (Half
23. In its Complaint, the City alleges that, according t0 the JPA, it is not responsible
for ongoing operations and maintenance 0f the SAM IPS because it does not “benefit” from the
SAM IPS. Contrary t0 the City’s allegations, the City directly and indirectly utilizes and benefits
from the SAM IFS. The SAM ES collects and transmits City wastewater to the SAM
wastewater treatment plant, and the City receives wastewater flow “priority” at the SAM
wastewater treatment plant. The City receives higher wet weather wastewater flow capacity due
t0 capacity limitations 0f the SAM LPS, which limits the flow 0f wastewater from GCSD and
MWSD to the wastewater treatment facility during wet weather events, to the benefit of the City.
7 1
24. Regardless of the “benefits” the City receives from the SAM IPS, as alleged,
supra, the JPA Phase II feallocation 0f SAM Sewer System costs and expenses does not rely on a
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“benefit” calculation, based 0n the relative benefit each Member Agency receives from the
various components of the SAM Sewer System. Instead, the Phase II allocations for SAM Sewex
System General Budget funding relies 0n each Member Agency’s proportion 0f wastewater
flows into the wastewater treatment plant and their LCP Allocations. The June 12, 2017 SAM
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Staff Report discussing the 2017-2018 General Budget correctly reasoned that “the total
expenses 0f operation and maihtenance (O & M) of all 0f the components 0f the [SAM Sewer
System] (intertie pipeline and attendant pump facilities, ocean outfall, treatment plant) shall be
11 25. From the time of the Phase II reallocation according to the terms 0f the July 2,
1979 IPA Amendment, until the City’s June 2017 refilsal t0 approve the 2017-201 8 SAM
13 General Budget, the City has continually funded the operation and maintenance, including
14 construction, 0n the SAM IPS, in accordance with the reallocation set and agreed t0 by the
15 Member Agencies in the JPA. In doing so, the City has fimded maintenance activities on the
16 SAM IPS, including the repair and replacement 0f pipe segments. All components 0f the SAM
17 Sewer System contain a mixture 0f older and newer pans, installed and maintained with the
18 effect and purpose 0f extending the service life of the SAM IPS and a1] other SAM Sewer
19 System components.
20 26. In past yeiars, the City has repeatedly and consistently paid its reallocated share,
I
21 including payments for large-scale SAM IPS maintenance activities involving construction by
22 repair and replacement 0f pipeline segments. Most recently, the City, as a SAM Member
23 Agency, approved SAM IPS repair and replacement work in 2014 (repairing and replacing 1,750
24 feet of the SAM IPS), and in 2016 (repairing and replacing 2,600 feet of the SAM IPS). The
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2017—201 8 SAM General Budget submitted t0 the Member Agencies included similar SAM [PS
26 repair and replacement work.
27 27. Under section V(A) of the JPA, the SAM General Budget is reviewed and
28 approved annually. Each year, SAM prepares a General Budget t0 fund, inter alia, the
the SAM Sewer System. SAM staffpresent the annual General Budget to the SAM Board 0f
LON
Directors for consideration. The Board 0f Directors then votes to approve submitting each year’s
General Budget to each SAM Member Agency for consideration and approval by each Member
Agency’s governing body. Once the governing body 0f each Member Agency has approved the
General Budget, the Budget is then returned to the SAM Board 0f Directors for final approval.
OO‘QQUI
The failure 0f even one Member Agency t0 approve the annual General Budget exactly as it was
presented t0 all Member Agencies results in the complete failure 0f the annual General Budget,
causing the elimination 0f funding for SAM unless and until the Member Agencies finally
10 unanimously approve an annual General Budget.
11 28. Between the months 0f March and June 2017, SAM prepared and the Board 0f
Directors considered the 2017-201 8 General Budget. On June 12, 2017, the SAM Board 0f
13 Directors, including its Half Moon Bay representatives, approved submitting the 20 17—2018
14 General Budget t0 SAM Member Agencies for approval. This budget includes $1 .5 million in
15 funding for SAM LPS infrastructure repair and replacement, an increase from the Member
17 work, which also included SAM IPS-related work. Since this increase was designed t0 repair
18 and replace certain preexisting ponions of the SAM—owned—and—operated SAM Sewer System, it
20 29. GCSD and MWSD approved the 2017—2018 General Budget as it was presented
21 to them. The City failed t0 d0 so, claiming the SAM IPS infrastructure work should not be
22 included in the General Budget, and, instead should be approved separately as a Proj ect Budget.
23 30. The JPA provides for “Project Budgets” separate from the General Budget. The
24 Project Budget procedures provide for the “initiation” of any new project that two or more of the
25 Member Agencies propose t0 fund. Under the plain reading 0f the JPA and the past practice 0f
26 the Member Agencies, the Project Budget provisions apply t0 new improvements not previously
27 existing. Because all three SAM Sewer System components, including the SAM IPS, have been
in existence and continual use and have been functioning for nearly four decades, the Proj ect
[Q General Budget did not envision expanding the SAM IPS or increasing its capacity, it only
proposed to implement a plan to repair and replace certain segments 0f the SAM IPS, in line with
similarly funded past repairs and replacements. The Member Agencies have regularly and
properly funded work on the existing SAM Sewer System, including the SAM IPS, through the
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General Budget.
31. GCSD now seeks an affirmative declaration from this Court that the City
continues to share r63ponsibility for its share of all costs and expenses related t0 the SAM IPS, as
reflected in the JPA, as well as an affirmative declaration that infrastructure work which does not
10 envision expanding the SAM IPS 0r increasing its capacity, but only proposes to implement a
11 plan to repair and replace certain segments of the SAM IPS pipeline does not require a Project
Budget.
13
16 33. SAM currently owns, operates, and maintains a fully consolidated SAM Sewer
17 System, consisting 0f(1) the SAM IPS, (2) the SAM wastewater treatment facility, and (3) the SAM
18 ocean outfall pipeline. SAM has been responsible for the continual operation and maintenance of the
19
consolidated SAM Sewer System since its inception.
20
34. The fully consolidated SAM Sewer System was constructed and/or incorporated in
two phases. Phase I included the construction and/or incorporation ofthe SAM IPS and the SAM
21
ocean outfall. Phase II constructed the SAM wastewater treatment plant.
22
35. Phase H reallocated the SAM Sewer System’s annual costs and expenses according to
23
each Member Agency’s wastewater flows into the wastewater treatment plant and the LCP
.24
Allocation. Reallocated costs and expenses as to the SAM IPS are thus fixed, and consist of
25
Operations and maintenance, including construction, and the requirement to cover SAM liabilities.
26
36. The JPA intentionally designed the Phase II reallocation to be independent of each
27
Member Agency’s perceived 0r realized “benefit” received from any given SAM Sewer System
28
. .
c6mp0nent, with the goal of creating a consolidated Mid-Coastside wastewater system. In agreeing
t0 construct the single fully consolidated SAM Sewer System with the SAM wastewater treatment
facility located in Half Moon Bay, GCSD and MWSD detrimentally relied on the fact that the City
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would continue t0 adhere t0 the Phase II reallocation cost formula. In any event, the City both
directly utilizes the SAM [PS t0 collect and transmit City wastewater to the SAM wastewater
treatment plant, and benefits fiom the SAM IPS in the form 0f the City’s ability t0 send a
I
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disprOportionately greater amount 0f wastewater t0 the wastewater treatment plant during wet
weather events so as t0 reduce the need for the City t0 construct wet weather storage facilities.
m
37. Since the inception 0f the IPA, SAM has regularly and properly funded SAM IPS
work, including pipeline replacement, through the General Budget. The City has long, and
repeatedly, approved General Budgets that include SAM [PS infrastructure work, such as repair and
r'eplacement.
~
38. On June 12, 2017, the SAM Board 0f Directors (including the SAM representatives
fiom the City) voted t0 submit the 2017—2018 General Budget t0 each Member Agency for approval.
The 2017-2018 General Budget included approximately $1 .5 million in repair and replacement work
t0 the SAM IPS. GCSD and MWSD approved the 2017-201 8 General Budget as it was submitted.
The City expressly declined t0 approve the 2017-2018 General Budget as it was submitted.
39. The SAM IPS infrastructure work was properly included in the 2017-201—8 General
Budget. The JPA reflects the Member Agencies’ agreement to include all ongoing SAM IPS
operations and maintenance, including construction, in the General Budget. The JPA further
provides that these costs and expenses shall be allocated according t0 each Member Agéncy’s flows
40. The SAM IPS is an integral component 0f SAM’S fully consolidated SAM Sewer
System. Because the SAM IPS is owned, operated and maintained by SAM, and is an existing
improvement, infrastructure work 0n the SAM IPS does not fall under the “Project Budget”
provisions of IPA section N(B). The SAM IPS infrastructure work in the 2017—2018 General
Budget would not alter, expand, 0r increase the service area or capacity 0f the SAM IPS as it
currently exists.
a. For a judicial declaration that SAM owns, operates and maintains the SAM Sewer
System, including the SAM IPS;
b. For a judicial declaration that the JPA Amendment dated July 2, 1979 established
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reallocated costs and expenses for fill SAM Sewer System components, including the SAM IFS,
based 0n each Member Agency’s flows into the wastewater treatment plant and the LCP Allocation;
c. For a judicial declaration that the City continues to share respousibility for costs and
OO
expenses related t0 the SAM IPS (including operations, maintenance, construction, and liabilities) .
and in proportion t0 the City’s wastewater flows into the wastewater treatment plant and its LCP
10
Allocation;
11
d. For ajudicial declaration that the City utilizes and benefits from the SAM IPS;
12
e. For a judicial declaration tha_t the SAM IPS infrastructure work was properly placed
13
in the 201 7-2018 SAM General Budget; I
14
f. For a judicial declaration that the SAM IPS infrastructure work proposed in the 2017-
15
201 8 SAM General Budget is not subject to the JPA Section V(B) “Project Budget” provisions and
16
procedures;
17
g. For costs 0f suit and attomeys’ fees and related expenses, pursuant to Califomia Code
18
of Civil Procedure § 1021.5; and
20
22
23
24 ?Hathan Wittwer
ttomeys for Defendant and Cross—
25 Complainant
GRANADA CONIMUNITY SERVICES
26 DISTRICT
27
28
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DAVID E. SCI-IRICKER, #3 6534
LAW OFFICE OF DAVID E. SCHRICKER
563 South Murphy Avenue
Sunnyvale, CA 94086
Telephone: (408) 517-9923
Facsimile: (408) 900-8225
dschrickerfizlschfickerlawsom'
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GRANADA COMMUNITY SERVICES
WATER AND
DISTRICT and MONTARA
SANITARY DISTRICT;
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Cross—Complainant,
Cross-Defendant,
and
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COMES NOW Cross Complainant Montara Water and Sanitary District, a public agency, and
alleges as follows:
GENERAL ALLEGATIONS
1. Cross Complainant MONTARA WATER AND SANITARY DISTRICT (“MWSD”) is
and was, at all times relevant herein, a local agency duly organized under the Sanitary District Law
of 1923, also exercising the powers of a county water district pursuant to Health and Safety Code
Section 65 12.7, and now is existing and authorized as a Water and Sanitary Disuict, with is
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3. Cross Defendant CITY OF HALF MOON BAY (“CITY”), is a general law city
organized under the Constitution and the laws of the State of California and located in the County of
San Mateo.
at all times relevant herein, a joint powers agency duly organized under the February 3, 1976
2
MONTARA WATER AND SANTITARY DISTRICT’S CROSS COMPLAM 17 CIV 03092
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hereinafier called "the JEPA," pursuant to the Joint Exercise ofPowers Law, Government Code
section 6500 et seq. SAM's Member Agencies are the CITY, GCSD and MWSD. SAM is a public
entity separate fiom its member agencies and located in San Mateo County and has the power to sue
and to be sued in its own name pursuant to the JPA and Government Code Section 6507.
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5. SAM owns and operates a secondary wastewater n'cattilent and disposal system which is
comprised of a treaunent plant, an ocean outfall pipeline and a collection system that collects
sewage fiom satellite collection systems serving the combined needs of the CITY, GCSD and
MWSD (“System”).
6. Upon formation of SAM in 1976, the System contained four (4) components, which
were built in two (2) Phases. The collection system was the first component of Phase I and was built
in 1979. Known as the Intertie Pipeline System (“IPS”), it consists of approximately eight (8) miles
of force mains and gravity interceptors and pump stations that convey raw sewage fi'om all Member
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Agencies to SAM’s treatment plant. The IPS was inifially constructed to connect the MWSD and
GCSD systems to a new ocean outfall located adjacent to the CITY’S then inoperable outfall line.
The cost of the initial installation of the IPS was shared equally between MWSD and GCSD, and the
cost of the new ocean outfall pipeline was shared between all three Member Agencies, to wit: 1/:
treatment plant facility at the site of the CITY’S then existing u'eatment plant, the goal of which was
to further consolidate the sewer functions of the Member Agencies. The plant was designed to treat
the combined flows fiom the individual collection systems of the Member Agencies, with the
capacity rights and construction costs that were previously allocated in Phase 1 re-allocated in
proportion to each Member Agency’s service needs ofthe WWTP. (CITY=50.5% MWSD=29.5%
GCSD=20%).
3
MONTARA WATER AND SANTITARY DISTRICT’S CROSS COMPLAINT l7 CIV 03092
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8. Pursuant to the Phase II re-allocation of costs, the total expenses of operating and
N maintaining SAM’s System pomponents were and are allocated based on each Member Agency’s
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flows to the treatment plant These costs are part of the “Operations and Maintenance" expenditures
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of SAM’s General Budget for which all Member Agencies contribute in accordance with their
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respective allocations and each fiscal year, SAM adopts a General Budget afier approval by each
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Member Agency} The JPA also requires the adoption of separate Project Budgets for specific
W projects afier approval by each Member Agency. The Project Budget expenditures are not bound to
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be shared in a manner based on each Member Agency’s flows to the treatment plant.
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9. Over the years, numerous repairs, rehabilitation and replacement of segments of the
pipeline and other [PS attendant facilities has consistently been interpreted as “maintenance” and
paid fi‘om the General Budget. The CITY has repeatedly conh-ibuted the cost of past operations and
maintenance of the ES. The most recent example is fi'om the 2015-16 General Budget where SAM
approved costs to rehabilitate the [PS pipeline by abandoning a failing segment ofpipe and
installing a new section alongside it, as well as replacing existing air valves along another segnent.
10. A11 Member Agencies utilize and benefit fi'om the IPS, including the CITY. For
example, the northern portion ofthe CITY is served by the [PS by and through GCSD’s collection
wuomnmn~owm333§55:3
system, which boundaries overlap with the CITY’S. "Rocket Fann‘s" and “Nurserymen’s
Exchange”, also located in the CITY, have direct connections to the IPS, either fi'om the CITY‘S
collection system or directly to the intertie within CITY'S service area. The CITY also receives
indirect use of the IPS when, in wet weather, the CITY'S discharge exceeds
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transmission capacity and MWSD's & GCSD's flows are stored in the IPS pipeline so the CITY’S
1
The JPA further provides that liabilities, debts and obligations incurred by SAM be shared
between the Member Agencies in proportion to their allocation shares in the System.
4
MONTARA WATER AND SANTITARY DISTRICT’S CROSS COMPLAINT I7 CIV 03092
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11.
-The present dispute arises fiom the CITY’S refusal to approve SAM’s 2017-18 General
Budget which includes expenditures for replacement of certain portions ofthe ES pipeline and
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repairs to the IPS attendant pumping facilities (“IPS Division Work”), which the CITY contends itis
not required to fund because it does not use or benefit fi‘om, or have capacity rights in the IPS and,
12. MWSD approved SAM’s 2017-18 General Budget and contends that the IPS Division
.
13. There is an urgent need to repair and replace segnen’rs of the IPS and other attendant
pumping facilities and MWSD desires and is entitled to a judicial declaration that the IPS Division
Work constitutes proper operation and maintenance expenditures under the General Budget.
14. An actual and present conuoversy has arisen and now exists between MWSD on the one
hand, and the CITY on the other. MWSD contends that the JPA obligates the CITY to pay its
allocated share of the cost ofthe IPS Division Work as a Geneml Budget expenditure.
15. Moreover, MWSD seeks declaration that CITY is responsible to contribute its allocated
SAM’s
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PRAYER
a. For a judicial declaration that the IPS Division Work is part ofthe operations and
maintenance of SAM’s facilities and required to be paid fiom the General Budget.
Budget and contribute its allocated share based on flows to the WWTP to pay for the
IPS Projects as part of the operation and maintenance of SAM’s facilities;
For a judicial declaration that the JPA requires that the IPS Division Work does not
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For ajudicial declarationthat IPS Division Work does not constitute a “projec
-
For a judicial declaration that JPA does not authorize the City to withhold its
approval ofthe IPS Division Work or to withdraw fiom said projects to avoid further
financial responsibility.
For a judicial declaration that the CITY is not authorized to withhold its approval of
the General Budget for fiJture repair, rehabilitation and replacement work related to
the IPS.
For a judicial declaration that the System, and its components, are owned by SAM
and that the CITY ‘is precluded fiom withholding its approval of the General Budget
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for all liabilities, debts and/or obligations arising fiom the System and its
componenfi.
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For a judicial declaration that the CITY utilizes and/or benefits fi'om the IPS.
For a judicial declaration that the JPA requires the CITY to be financially responsible
proportionate to its allocated share for all liabilities, debts and/or obligations related
to SAM’s System.
For costs of suit and attorneys fees pursuént to Code of Civil Procedure Section
1021 .5.
For such other and further relief as the Court deems proper.
6
MONTARA WATER AND SANTITARY DISTRICT’S CROSS COMPLAINT 17 CIV 03092
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7
MONTARA WATER AND SANTITARY DISTRICT’S CROSS COMPLANT 17 CIV 03092
I declare that I
L.
DECLARATORY RELIEF
Re: CITY 0F HALF MOON BAY v. GRANADA COMMUNITY SERVICES AND
DISTRICT AND MONTARA WATER AND SANITARY DISTRICT
San Mateo County Superior Court Case No. 1 7CIV03092
[X] (BY REGULAR MAIL) I caused a copy of said pleadings to be placed in a United States
Mail depository,
'
Anthony P. Condotti
Atchison, Barisone Condotti,& APC
P.O. Box 481
Santa Cruz, California 95061
Michael G. Colantuono
Pamela K. Graham
Eduardo Jansen
Colantuono, Highsmith Whatley, PC &
420 Sierra College Drive, Suite 140
Grass Valley, California 95945-5091
I declare under penalty of peljury under the laws of the Stale of California that the
[X] (BY REGULAR MAIL) I caused a copy of said pleadings to be placed in a United States
Mail depository, in a sealed envelope with postage fully prepaid to the below listed
addresses:
I declare under penalty of perjury under the laws of the State of California that the
Dated: September 6, 17 .
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COLLEEN C. FI E
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RECEIVED
§ SEP 082017
CivilDepartment‘“ P
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400 County Cente r, Redwgga tfiffigfl‘g‘é‘o‘
COUNTY
(550) 251 5100 _
“S SAN MATEO
www.sanmatepemw‘tgm -3 A ‘0‘
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THE cOURT V
AFFIDAVIT 0F FT“
Msw T 0c,
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Date: 9/13/2017
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BY
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In
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the Matterof: CITY
Case No.:
0F HALF MOON BAY vs. GRANADA COMM Nm’ SERVICES DISTRICT et aI
| declare under penalty of perjury that on the following date | deposited in the United States Post Office mall
box at Redwood City, a true copy of the attached document(s) STIPULATION AND ORDER RE: EXPENSES AND
ASSESSMENTS OF SEWER AUTHORITY MlD-COASTLINE, enclosed in an envelope, with proper and necessary
postage thereon, and addressed to the following:
By:
Deputy Clerk],
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Patrice D a ,
AflrdauumMamng
IN
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STATE O? CALTFORNTA
COUNTY OF SAN MATEO SS.
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CARL P.A. NELSON (cnelson@bpmnj.coml SBNII
TIMOTHY J. RYAN (tganngpmnjcom) SBN 83775 ,
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wamm Creek, CA 94598 BY
(925) 933-7777 —_ Telephone
(925) 933-7804 ~ Facsimile
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CITY OF HALF MOON BAY, a municipal corporation,) Case No. m1.
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M Plaintiff, STIPULATION AND ORDER
REGARDING EXPENSES
VS. AND ASSESSMENTS OF
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The 0n.
Defendants. .
Dept.
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IT IS HEREBY STIPULATED by and among Plaintiff CITY OF HALF MOON BAY,
1 Il | r
M to Defendants GRANADA COMMUNITY SERVICES DISTRICT and MONTARA WATER
[\J
Lu.) AND SANITARY DISTRICT, and Real Party In Interest SEWER AUTHORITY MID-
COASTSIDE, through their respective attorneys, as follows:
OF HALF MOON
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&
Order
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N ON BAY (“CITY”) against the defendants hereto and real party in interesf herein t0 obtain a judicial
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Sflpufaflun
M x] decimation of the parties’ respective rightg and obligations under the February 3, 1976
u SO
8, hereinafter called “the IEPA,” principally with respect to whether certain activities (126., work
1 STIPULATION AND ORDER
Regarding SAM Expenses and Assessments
related to the “intertie pipeline and attendant pumping facilities”) are properly included within
“[t]he total expenses of operation and maintenance of all of the components of the Present
facility” or separate “Projects” regarding which each Member Agency may choose whether or
OOONJONU‘n-bb-JNr—a
not “to be a participant.” (Terms in quotes are from the JEPA as amended.)
1923, and how is existing and authorized under the Community Services Diskict Law, with its
1923 also exercising the powers of a county water district pursuant to Health and Safety Code
Section 6512.7, afid now is existing and authorized as a Water and Sanitary District, with its
pursuant to the Joint Exercise of Powers Law, Government Code section 6500 et seq. SAM’s
WQQMAMMHODWQQMLWMHO
5. 'l;he JEPA provides that an annual General Budget shall be prepared by SAM and
submitted to-the governing bodies ofthe Member Agencies for approval, and specifies that final
approval by SAM shall require the prior consent of all Member Agencies. On June 12, 2017, the
SAM Board submitted to each Member Agency for approval a General Budget for Fiscal Year
201 7-201 8. GCSD and MWSD approved the General Budget as presented, but CITY only
approved a portion of the General Budget, specifically declining to approve the portion of the
General Budget characterized as the “Infrastructure Division,” which includes the repair and
replacement of a segment ofthe Intertie Pipeline System (fiom Stations 51+50 to 73+50) and the
repair and replacement of a surge tank at the Portola Pump Station, as well as related costs for
‘
which did not occur. As a result, since the current fiscal yearbegan on July 1, 2017, pursuant to
Resolution 8-2017, SAM has been drawing down its Operating Reserves to continue the
collection, transmission, treatment, and disposal of the wastewater generated within the
NOWNONUNALQNb—a
territories of the Member Agencies. At the rate SAM has been drawing down its Operating
Reserves it will need new funding by approximately August 18, 2017.
7. SAM has no funding mechanism 6f its own to continue operations other than
drawing upon its Reserves and relying upon Member Agency payments of their respective
budgeted obligations. Without an approved General Budget, SAM has no current authority to
issue invoices to the Member Agencies to cover expenses associated with the collection,
transmission, treatment, and disposal of the wastewater generated within the Member Agencies’
territories. Failure to continue SAM’S operations not only threatens to, but will, seriously
8. The-Parties desire that SAM continue the collection, transmission, treatment, and
disposal of the wastewater generated within the Member Agencics’ territories to protect the
public health, safety, and welfare, and to enable this to continue, hereby stipulate as follows:
a. SAM shall operate pursuant to its Fiscal Year 201 7-2018 General Budget
.
as approved by the SAM Board for submittal to wch Member Agency for approval 0n
MNNNNMNMMb—IHHHHHHHHW
June 12, 2017 in the form heretofore presented to the Member Agencies,
W‘JQMAMNHOWWQQMAWNHO
b. SAM shall issue monthly invoices to the Member Agencies based on the
Fiscal Year 2017-201 8 Genera] Budget, each invoice comprising one-twclfih of the
Division,” and shall pay any amount for the repair and replacement of a segment of the
Intertie Pipeline System (from Stations 5 1+50 to 73+50) and the repair and replacement
'
of a surge tank at the Portola Pump Station, as well as related costs, including without
limitation those fbr the SAM Engineering & Construction Contracts Manager. The CITY
days 0f receifit the invoices described in subparfigraph 8.b; provided, that as to any
portion thereof specified pursuant to subparagraph 8.0 to be paid under protest, the
payment of that portion shall be without prejudice t0 the position 0f any party to this
litigation. In other words, no waiver, estoppel or other legal or equitable bar as to any
\ODO‘JOxU‘I-DUJNH
party shall arise from the CITY’S payment under protest pursuant to this stipulation or
any order arising fiom it. Any claim of any party as to any portidn ofthe .2017-18
General Budget as referenced in Paragraph 5 (including but not limited to any payment
under protest) may be resolved by further agreement of the parties, whidh may result
from the parties’ participation in “any . . . mutually agreeable method of sefilefilent” under
the JEPA as amended, or by a final ruling(s) ofa court of competent jurisdiction in the
above-captioned litigation.
9. This stipulation is intended to enable SAM to continue its ongoing operations and
proceéd with expenditures in accordance with the 2017-18 General Budget as referenced in
Paragraph 5,. and no language herein is to be construed as a waiver of any claim, cause of action,
defense, objection to any procedural matter (including without limitation, obj ection to seeking an
alternative venue pursuant to section 394 of the Code of Civil Procedure), or otherwise to be
construed as a waiver of or consent to any matter nOt expressly évontained herein, including but
MNNNMNNMMn—tr—HHp—nw—afiHp—q
not limited to any right(s) 0f any party contained in the JEPA. NotWifllstanding the foregoing,
OOQOMAUJNHOOOOQQLh-waHO
the parties fithher agree that SAM may, without further agtion by its Board (other than‘ such
action(s) required to award construc-tion contracts and supporting service contracts), expend the
funds shown appropriated by the “Infrastructure Division” ofthe FY 2017—2018 General Budget
the Intertie Pipeline System (from Stations 5 1+50 to 73+50) and the repair and replacement of a
surge tank at the Portola Pump Station, as well as related costs, including without limitation
those for the SAM Engineering & Construction Contracts Manager (collectively, “Infiastructure
'
”Division Costs”). The panics agree that expenditure of the Infiastructurc Division Costs is
necessary t0 enable compliancewith environmental and other laws governing SAM’s operations
4 I
STIPULATION AND ORDER
Regarding SAM Expenses and Assessments
and they therefore agree to cooperate in good faith to see that said FY 2017—2018 General
Budget is implemented expeditiously and withéut further delay arising from the dispute which
10. This stipulation shall be effective and binding upon the parties as of the date of
DWNONLIIhUJM
the last signature hereon. Nevertheless, the parties jointly request the Court to order
1 1. The parties further agree that the public interest provides that this stipulation may
be deemed to bc'SAM’s responsive pleading herein, which neither admits or denies the
allegations of the Complaint or any Cross-Complaint(s), and that SAM shall be among the
10 parties entitled to enforce the provisions of this stipulation in this action, and shall be a party
11 bound by the judgment rendered herein without the necessity to appear at conferences or trial,
12 provided that this stipulation is approved and ordered implemented by the Court.
13 Dated: {$19 L! g
mw BOLD, POLISNER, MADDOW, NELSON & JUDSON
14
15
Byfiwmwm
Carl P.A. Nelson, Attorneys for Real Party In Interest
16
SEWER AUTHORITY MID-COASTSIDE
17 ‘
19 By
Michael G. Colantuono, Attorneys for Plaintiff
20 CITY 0F HALF MOON BAY.
21
Dated; WITTWER PARKIN, LLP
.22
23 By:
Jonathan Wit‘twer, Attorneys for Defendant
24 GRANADA COMMUNITY SERVICES DISTRICT
25
Dated: LAW OFFICES OF DAVID E. SCHRICKER, P.C.
26
27
David E. Schri cker, Attorneys for Defendant
23
MONTARA WATER AND SANITARY DISTRICT
Budget is implemented expeditiously and without further delay arising fi‘om the dispute which
10. This stipulation shall be effective and binding upon the parties as ofthe date of
\DmflOth-DUJNr—A
the last signature hereon. Nevertheless, the parties jointly request the Conn to order
11. The parties fufiher agree that the public interest provides that this stipulation may
be deemed to be SAM’S responsive pleading herein, Which neither admits or denies the
allegations of the Complaint or a’ny Cross-Complaint(s), and that SAM shall be among the
H parties entitled to enforce the provisions of this stipulation in this apfion, and shall be a party
H
bound by the judgment rendered herein without the fiecmsity t0 appear at conferences or trial,
.—o
provided that this stipulation is approved and ordered implemented by the Court.
Dated:
b—I
r—a
By:
Caxl RA, Nelson, Attorneys for Real Party 1n Interest
H
SEWER AUTHORITY MID-COASTSIDB
r—i
H By:
W‘JOSUI#WNHO‘OOQ\JQM#UJNHO
Anomeys
Miéhael G. Colanruono, for Plaintiff
M CITY OF HALF MOON BAY
Ix.)
M BY.
Jonathan Wittwcr, Attorneys for Defendant
GRANADA COMMUNITY SERVICES DISTRICT
WW
N~N
N By:
David E. Schricker, Attorneys for Defendant
N MONTARA WATER AND SANITARY DISTRICT
Budget is implemented expeditiously and without further delay arising from the dispute which
' .
'
This stipulation shall be effective and binding upon the parties as ofthe date of
'
10.
the last signature hereon. Nevertheless, the parties jointly request the Court to order
.
I
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“
11. The parties further agree that the‘pubiic' interest provides that this stipulatioh rfiay'
be deemed to be SAM’s responsive inleading herein, which neither admits or denies the
allegations ofthe Complaint or’any Cross-Complaint(s), and that SAM shall be among the
parties entitled- to enforce the provisions 0f thisstipulation in this action, and shall bc a party
bound by the judgment rendered herein without the necessity to appear at conferences 0r trial,
provided that this stipulation is approved and ofdered implemented by the Court.
By:"
Carl RA. Nelson, Attorneys for Real Party In Interest
SEWER AUTHORITY MlD-COASTSIDE
mQQMAmMr—‘oxoooqmm-bmm'fio
BY. I
Dated:?[u[£w7 WITTWERPARKINJQLP
By:
‘
By:
David E. Schricker, Attorneys for Defendant
MONTARA WATER AND SANITARY DISTRICT
'
Budget is implemented expeditiously and without further delay an'sing from the dispute which
10. This stipulation shall be effective and binding upon the parties as ofthe date of
the last signature hereon. Nevertheless, the parties jointiy request the Court to order
OOOO‘JQU'IAUJN
11. The parties fiu‘ther agree that the public interest provides that this stipulation may
be deemed to be SAM’s responsive pleading herein, which neither admits or denies the
allegations of the Complaint or any Cross-Complaint(s), and that SAM shall be among the
parties entitled to enforce the provisions of this stipulation in this action, and shali be a party
bound by the judgment rendered herein without the necessity to appear at conferences or trial,
provided that this stipulation is approved and ordered implemented by the Court.
By:
Carl PA. Nelson, Attorneys for Real Party In Interest
NNNNNNNHwHHr—r—aw—fip—au—ah.
SEWER AUTHORITY MTD-COASTS‘IDE‘
By:
Michael G. Colantuono, Attorneys for Plaintifi‘
CITY OF HALF MOON BAY
27
David E. Schricker, Attorneys for Defendant
MONTARA WATER ANDSANITARY DISTRICT
‘..', I
I.
This Application came before the Court on the Law & Motion Ex Parte Calendar earlier
this week.
Having reviewed the foregoing Stipulation, and being informed by Counsel for Real
kooo-QONLAALANH
Party In Interest Sewer Authority Mid-Coast that the governing bodies of each of the four local
public agencies that are party to the litigation met in closed session, approved the Stipulation,
and authorized their respective Counsel to sign the Stipulation on behalf of each agency,
The Court is ofthe opinion, and I so find, that the Parties’ joint request for an
implementing Court Order is an appropriate request for ancillary reliefto maintain the status
quo, and thereby protect the Court’sjurisdiction, pending the outcome ofthis case. (See, e.g.,
People v. Black’s Food Store (1940) 16 Cal.2d 59, 62.) It is sufficiently related to the subject
matter of the action, as set forth in both the complaint and cross—complaints herein, and the terms
and conditions ofthc Stipulation, including those that seek to streamline andfor expedite the
litigation, appear to be fair and reasonable, and in the interests ofthe public served by the Parties.
(Hg.
“ hereby Approved
NNNNNNNNMHHHHHHp—nu—AHH
Accordlfigly, and Good Cause Appearing, the foregoing Stipulation ls
OONIO‘tUI-AUJNHOKOOO‘JQUI#WNHO
9
‘ '
GERALD J.BUCHWALD
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JUDGE 0F THE SUPERIOR COURT
By W
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DeputyCLErk
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Defendants,
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21 SEWER AUTHORITY MID-COASTSIDE,
22
Real Party in Interest.
23
24
GRANADA COMMUNITY SERVICES
25 DISTRICT,
26 Cross-Complainant,
27
VS.
28
1
7
Cross-Defendant,
The motion of Plaintiff CITY 0F HALF MOOM BAY for Mandatory Transfer 0f
10 Venue came on regularly for hearing before this Cofirt on September 19, 20 17, in Law and
12
After full consideration of all papers filed in connection with said motion and oral
13
argument and evidence as was submitted and presented at hearing, and good cause appearing,
14
the Court finds that appointment of a disinterested judge from a neutral county in lieu of
15
16
transferring the proceeding to another county as provided in Section 394 0f the Code of Civil
17 Procedure is appropriate because the claims upon which the action is based are ones in which a
18 not ofright.
jury is
19
IT IS THEREFORE ORDERED that Plaintiff’s motion for an order transférring the
20
proceeding to a neutral county is DENIED;
21
IT IS FURTHER ORDERED that Defendants request is granted t0 have this Court
22
23 request the chairperson ofthe Judicial Council t0 assign a disinterested judge from a neutral
24 county t0 hear the action and all proceedings in connection therewith in San Mateo County
25
Superior Court.
26
27
28
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Attorneys For Defendant and Cross Complamant 2 7
MONTARA WATER AND SANITARY DISTRICT
SUPERIOR COURT OF THE STATE OF CALIFORNIA
DefendantS,
and
SCANNED
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SEWER AUTHORITY MID-COASTSIDE, Fig“;
‘
17!?!
MONTARA WATER AND SANITARY
DISTRICT, a public agency
Cross—Complainant,
17 CIV 03092
1
PROOF OF SERVICE
V.
and
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OO\JO\UIAUJN#-IO\OOO\]O\M-5LANHO
17 CIV 03092
2
PROOF OF SERVICE
PROOF F SERVICE
I declare that l am employed in the County of San Mateo, Califomia. I am over the age of
eighteen years and not a party to this action. My business address is 345 Lorton Avenue, Suite
[
']
(BY FEDERAL EXPRESS MAIL) caused I a copy of said pleading(s) to be sent
via Federal Express Mail to the panics listed below:
|le (BY REGULAR MAIL) I caused a copy of said pleadings to be placed in a United States
Mail depository, in a sealed envelope with postage fully prepaid to the below listed
addresses:
I declare under penalty of perjury under the laws of the State of California that the
Dated: SeptemberG. I7
Comm 1x, (1 ”’flj-Qjac/ULQQ
COLLEENC. FITZGERAI’. d
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m0
UAW
nwhipps@wittwerparkin. com
17—
a
CW — 03092
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17 POREU
GRANADA COMMUNITY SERVICES Progosed Order Received
18
19
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DISTRICT and MONTARA WATER AND
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Defendants,
20
23
24
GRANADA COMMUNITY SERVICES
25 DISTRICT,
26 Cross-Complainant,
27
VS.
28
Cross-Defendant,
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Real Party in Interest.
The motion of Plaintiff CITY OF HALF MOON BAY for Mandatory Transfer of Venue
came on regularly for hearing before this Coufi on September 19, 2017, in Law and Motion
After full consideration 0f all papers filed in connection with said motion and oral
argument and evidence as was submitted and presented at hearing, and good cause appearing,
above—entitled Court shall be transferred for all purposes t0 the Superior Court in and for the
County of Santa Clara pursuant to Section 394 of the Code of Civil Procedure in that this is a
IT IS FURTHER ORDERED that transfer 0f said action will be without transfer fees
Section 6103;
under Section 394, subdivision (a), 0fthe Code 0fCivil Procedure and said costs shall be
\OOO-QQU'I-h-UJNH
NNNNNNNNN—n—tu—np—H—on—a—an—Ir—nr—n
ooflONLh-PUJN—‘OKDOOQGU‘IAWNHO
E‘E‘L‘ED FILED
SAN
Jonathan Witrwer,SBN 058665 ‘
Ns‘gio CZEUNTY
William SBN 13971 8
P. Parkin,
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Nicholas Whipps, SBN 306865 2W 0m _
3 A 10 us 17
wparkin@wittwerparkin.com
nwhipps@wittwerparkin.com lfllllfllfimi EWIHEHIIW
Defendants,
Cross-Complainant,
VS.
Cross-Defendant,
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2016 COurt Statistics Repon, Judicial Council ofCalifomja (201 6) (Attached hereto as
Exhibit A).
By: @IWW
nathan Wittwer
Attorneys for Defendant and Closs—
Complainant
GRANADA COMMUNITY SERVICES
DISTRICT
EXHIBIT A
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JUDICIAL COUNCIL
OF CALIFORNIA
2016 COURT STATISTICS REPORT
. ., , JUDICIAL COUNCIL
-~
v 0F CALIFORNIA
» . x
Glenn
_,'_
m _ M m_4g'0_
9.0M
2.3
M
_ _1o.9v
5g}?
2.4
’
22,463
13,6675:
10,113
_‘
2,496
3,156,.
4,397
__48_
37
8
__ ____
’
23,897
133,206
10.227
_ 2_,1g:gw___fl
2.545
4.210
32§
5
Humboldt 8.0 8.7 26,747 3,343 29 25,671 2,942 24
Imperial 11.3 11.7 68,803 6.089 1 69,694 5,972 1
1‘
___é.g' _
2.6io_ ___":33;
‘
”9.5,
24,512 2,536 .
46 _ >
24.650
Mann 12.7 11.8 42,853 3,374 28 41.753 3.549 11
'Modoc . _ r _ .
2‘3 2.3 2.239 9]; 5§ _ x W
2,133 I
_9_1_5 _v H51».
fSan Benito v ‘
2.3 2.6 V»__7»,928_ ___gl4flw 24‘ _ \
7,5757 2.9.572 _23'
Column Key:
(A) commissioners and referees in addition to the number ofjudges authorized for the court. The 50
Judicial positions inctude court
newjudgeshlps authorized by Assembly Bill 159. effective January 2008, are still unfunded and are included in the statewide
total but not shown in individual courts like in previous versions of the Court Statistics Report.
(B) Reflects authorized judiciaI positions adjusted for vacancies. assistance rendered by the court to other coums. and assistance
received by the court from assigned judges, Iemporaryjudges. commissioners. and referees.
(D) C/A
(G) F/B
Notes:
(i) lncompleie data; reports were submitted for less than a full year.
00r— The court reported that no cases occurred or the coun did not submit a report in this category. Ranks not computed for courts with
missing or incomplete data.
“El D_9_rapo 7 7
69_% “82:73 _ w _8_83A3 75% 90% g5% _
3_0% 48% F
11% 18% _
w
r _
—
V
'Fresno
_
— 7
— — — — —_ _— A
-—
Glenn 78% 91% 95% 90% 99% 99% 61% 82% 73% 84%
Humboidt 74% 82% 88% 88% 95% 98% 46% 68% 70% 78%
Imperial 64% 72% 77% 85% 91% 93% 49% 65% 68% 74%
_|ij9 79% 87_°/9
_ 93% 8_1% 90% 932% 4879 _70‘V9 _ _ _58_% _
74%-
Kern _7_6% 89% 94% - — — — — — —
Kings 52% 68% 77% 81% 90% 93% 37% 63% 46% 60%
Lake 78% 85% 90% 84% 94% 98% 38% 60% 65% 75%
Lassen 87% 92% 94% 86% 95% 96% 60% 79% 58% 70%
Los Angeles 53% '
74% 89% 1
81% 92% 97% 47%__ _
_72% a
45°{o
a 75%
TMadeya _ 14% _35°/_or >
90% _
88% 93% 97% 46% 63% 70% 19%.“
Marin 69% 82% 89% 82% 93% 96% 37% 49% 67% 79%
Mariposa 55% 65% 77% 80% 87% 90% 42% 58% 82% 95%
Mendocino —
~
— — —- — — — -— — —
Merced 64% 75%} 85_% 77% 85% 92% 61 %_ _
81 f/o
_
74% 8_1 %
:ModEc 37% 87% 90% 94% 100% v
100% 50% 67% 79% _35% I
Mono 58% 66% 75% 81% 93% 93% 64% 73% 20% 44%
Monterey 68% 80% 86% 80% 95% 98% 59% 78% 83% 88%
Napa 77% 89% 96% 83% 90% 93% 51 % 67% 64% 78%
Nevada 83% 9_4% 97% 94% 97% 98% 39% _59_%_ 69% 78%
?Orange 69% 86% 94% 79% 94% 98% 56% 26% 49% _ 74%
Placer a — — — — — -— — — —
Plumes 84% 91% 95% 94% 97% 99% 36% 62% 57% 84%
Riverside 74% 87% 93% 85% 97% 98% 55% 75% 60% 72%
Sac[a_mentow 57% 69% 82% 94% 96% 97% r
100% 100_% 56% 637g
TSan Benito 84% 95% 95% 90% 94% 96% 57% J 75%“ 77% 82%
San Bernardino 62% 79% 88% 92% 98% 99% 58% 82% 64% 78%
San Diego 79% 90% 95% 56% 81% 90% 45% 69% 21% 26%
San Francisco 48% 74% 87% 81% 92% 95% 37% 59% 67% 74%
San Joaqgin 68% 79% 8_6%‘ a
“77% _
84% 88% I _ ,_4§°_A,__« _ 63:%_ ~ __12°/_o_ > 16%
F§§n_L_qI;s‘ Opjspo_ __ _m__7§°/q ‘8_6°@ __ _ 91% _
80% _ 93% 97% 54% , 71%? 68% 74% _
San Mateo 56% 77% 87% 69% 83% 90% 49% 64% 59% 73%
Santa Barbara 75% 89% 94% 86% 93% 96% 53% 72% 76% 86%
Santa Clara 68% 81% 89% 78% 88% 94% 65% 79% 53% 64%
Santa Cruz 79% 90% 95% 82% 96% ‘
99% 48% 65% 59% _
73%
Shasja _ _ 30% _37'_% 41% ‘
93% 99% 109% A
58% V .1635 u _ _
64% ‘
74%
STATEWIDE 64% 76% 83% 83% 91% 94% 51% 70% 58% T1 %
Sierra —- — v
— — — _
— # — 50% 75%
Siskiyou 83% 92% 94% 83% 88% 93% 42% 63% 53% 64%
Solano 71% 85% 93% 72% 85% 87% 38% 52% 55% 65%
Sonqma 76% 88% 92% ‘
86% 95% 99% 65% 81% 64% 75%
§tanislaus _
61% 75% 83% 79% 93% 95% 14% 34% 35% 60%
Sulter 73% 82% 89% 79% 86% 92% 63% 81% 79% 90%
Tehama 72% 87% 91% 83% 91% 95% 55% 69% 52% 65%
Trinity 84% 88% 92% 92% 97% 97% 41% 73% 60% 77%
Tula[e_ _ _
79% 90% 95% 82% 91% 94% 70% 88% '
21% 24%
Tuolumne a1 % 9g%_ 95% 957% 95% 98% 583/9 _ _ 763/9‘ 52% 62%
Ventura 73% 88% 94% 86% 94% 96% 55% 75% 70% 78%
Yolo 69% 80% 88% 80% 96% 99% 55% 69% 17% 22%
Yuba 74% 82% 88% 85% 94% 95% 57% 72% 81 % 93%
Column Key:
(G) —(H) Inc1udes limited unlawful delainers only.
Note:
— The court did not submit a repori in [his category.
(SN
‘. xv
U1
147 S.
Santa Cruz,
River Street, Suite 221
CA
95060
Telephone: (831) 429-4055
Facsimile: (83]) 429-4057
D . .
onathan@w1ttwerpark1n.com
flfi
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OPP
Opposition
CLERK OFT
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ONOOOQQ
Attorneys for Cross Complainant
SCANNED
GRANADA COMMUNITY SERVICES Exemptfrom Filing Fees Pursuant to
DISTRICT Government Code Section 6103
l3
CITY OF HALF MOON BAY, a municipal Case No.2 W992—
14 corporation, Unlimited Jurisdiction
Defendants,
20
BY FM
21 SEWER AUTHORITY MlD-COASTSIDE,
22
Real Party in Interest.
23
24
GRANADA COMMUNITY SERVICES
25 DISTRICT,
26 Cross—Complainant,
27
VS.
28
Cross—Defendant,
(JI-P-DJN
o'xooo-qo-x
I. Introduction
Plaintiff City 0f Half Moon Bay’s Alotionfor Mandatory Transfer 0f Venue (CCP 394);
11
Memorandum in Support, filed August 29, 2017 (“Motion”) under California Code 0f Civil
12
Procedure section 394. Defendant Would prefer t0 retain this action in the County 0f San
13
Mateo. However, ifthis Court chooses to transfer this action, Defendant request transfer to
14
Santa Clara, Contra Costa or Alameda. Defendant strongly opposes Plaintiff” s proposal to
15
transfer this aétion to Sacramento, which is not convenient for Defendant and would create
16
Plaintiff filed its Complaint for Declaratory Relief (“Complaint”) against Defendants
19
and Real Party in Interest Sewer Authority Mid—Coastside (“SAM”) 0n July 11, 2017.
20
Defendant Montara Water and Sanitary District filed its Answer and Cross-Complaint on
21
Thursday, August 24, 2017, and Defendant Granada Community Services District filed its
22
Answer and Cross-Complaint on Tuesday, September 5, 201 7.
23
In their respective Cross-Complaints, Defendants seek declaratory relief regarding
24
Plaintiffs unwarranted attempt to avoid its contractual responsibilities, inter alia, t0 fund $1 .5
25
26
million in maintenance 0fthe SAM Intertie Pipeline System (“SAM IPS”). (Granada
27
Community Services District Cross—Complaint 1129). The SAM [PS is a component 0f the
28
single, consolidated SAM Sewer System, which also consists of a SAM wastewater treatment
Half Moon Bay is routed to and then transmitted by the SAM IPS to the SAM wastewater
treatment plant before finally being discharged through the SAM ocean outfall pipeline.
Plaintiff erroneously alleges that Defendants and Plaintiff, as Member Agencies to the
‘OOOflQM-IKWNt—A
SAM Joint Powers Agreement (“JPA”), agreed to bear the cost to maintain each Sewer System
component “in proportion to their respective benefit” from each-Scwer System component.
(Motion, p. 2:23). Plaintiff ignores that the JPA requires Plaintiff t0 pay its allocated share of
SAM IPS maintenance costs (including repair and replacement). (Granada Community
Services District Cross-Complaint 1120). Further, Plaintiffutilizes the SAM IFS, both by
pumping wastewater through it and by benefitting in the form of increased wet weather
The SAM IPS maintenance proposed in the 2017-2018 SAM General Budget is
analogous to maintenance conducted in prior years and consistently approved by Plaintiff. Like
all public works projects, the SAM IPS was constructed t0 remain in service until such a time as
it is decommissioned. The SAM IPS remains in full use today: it continues t0 be maintained,
and there are no plans t0 decommission it. The JPA does not condition Plaintiff’s continued
NMMNNNNMNHHHH—d—ns—nh—nu—Iu—d
responsibility to fund SAM IPS maintenance costs (including repair and replacement) on the
“useful life” 0f the SAM IPS, as Plaintiff contends. Further, the service life ofthe SAM IPS
and all other Sewer System components is constantly being extended, as parts are continually
OO‘JQLII-PDJNHONDOOQO‘M-KWN—‘O
Plaintiff attempts to rewrite the IPA in'its efforts to avoid its continuing contractual
reSponsibility t0 fund the SAM IPS. The City remains responsible for its share of SAM IPS
costs and expenses, as was the intent 0f all Member Agencies in signing the JPA and choosing
Defendant prefers t0 try this action in the County of San Mateo before ajudge from this
County. However, if this Court determines that Section 394 precludes this, Defendant requests
The primary purpose 0f Section 394 is to prevent the appearance 0f prejudice, as well as
actual prejudice or bias, in recognition 0f the pressures that local judges may face from matters
involving disputes between local public entities. (San Francisco Foundation v. Superior Court
(1984) 37 Ca]. 3d 285, 299 (citation omitted». prarties arc dissatisfied with a proposal t0
transfer the action t0 another county, “the inconveniences 0f transfer can, in a proper case, be
avoided by the expedient 0f appointing a judge from a neutral county t0 hear the case.” (County
ofSan Bernardino v. Superior Court (1 994) 30 Cal.App.4th 378, 389). Section 394 permits
Judicial Council appointment 0f an out-of-county judge “[w]hen the action or proceeding is one
in which a jury is not 0f right.” This is an alternative remedy expressly and equally provided by
Section 394 in lieu of transferring the case t0 the Superior Court of an outside county. (See
Here, appointing a judge from a neutral county is proper. Defendants and Plaintiff
unanimously seek equitable declaratory relief, in the form 0f determining the rights and
responsibilities of the Member Agencies t0 the JPA. A jury trial is not “0f right” in an equitable
declaratory relief action. (Shaw v. Superior Court (2017) 2 Cal. 5th 983, 995; Interactive
Mulrfmedia Artists, Inc. v. Superior Court (1998) 62 Cal.App.4th 1546, 1551). Appointing an
out-of-countyjudge is appropriate where, as here, a jury trial is not of right. (Cal. Code Civ.
Proc. § 394(3)).
In its Motion, Plaintiff objects t0 the assignment 0f a neutral judge on four (4) separate
grounds. (Motion, page 6, line 6 through page 7, line 5)‘ Although Plaintiff concedes that
“there ié little difference between transferring a case t0 a neutral county and having a neutral
judge assigned by the Judicial Council,” Plaintiff nevertheless contends that the circumstances
0f the instant action weigh in favor of transfer to a neutral county as opposed to the appointment
'
References t0 page and line numbers hereinafter shall be in the following format: “pagefline
number”.
weigh heavily in favor 0f appointment 0f a neutral judge from another county t0 hear the case in
San Mateo County as the proper remedy, as more fully set fonh below.
UI-‘DUJM
A. The Urgent Circumstances Forming the Basis of Plaintiff’s Complaint Have Been
Mitigated
Plaintiff first contends that there is an immediate need t0 resolve the merits 0f the case
so that the alleged “uncertainty” and “likely delay” associated with the assignment of a neutral
QWNJON
judge warrants against providing such a remedy. (Motion, 6: 17-1 8). According to the City, this
matter involves the treatment and conveyance 0f sewage and “time is of the essence due t0
public hgalth, safety, and environmental issues ...”. (Motion, 6:15—17). The City’s Complaint
10
concerns a dispute between the parties over a 201 7-1 8 General Budget item 0f $1 .5 million t0
11
12
repair and replace portions 0f SAM IPS. The relief sought by the City is “that the most critical
replacements be funded promptly to ensure safe and lawful operation 0f the Authority’s
13
regional collection and treatment systems and to protect public health, safety and the
14
Defendant first disagrees with Plaintiff‘s speculative concerns regarding the efficiency
16
0f appointing a judge from a neutral county. Defendant believes that the Judicial Council can
17
provide such an appointment in a timely manner. Further, while the immediate funding of the
18
19
SAM IFS maintenance and repairs was a matter 0f paramount urgency at the time the
Complaint was filed, sirice the filing ofthe Complaint, the parties have entered into a
20
Stipulation whereby all member agencies have agreed to pay the invoices authorized by the
21
22
2017-18 General Budget (with Plaintiff agreeing “under protest”), including SAM making the
23
expenditures for the SAM IPS maintenance and repair in dispute. (See Exhibit B, Stipulation
25
Therefore, the critical work t0 the SAM IPS will promptly proceed, and the threat t0 public
health and safety 0r the environment is n0 longer the dominant concern.
26
Defendant is convinced the Judicial Council will act expeditiously on the Parties’
27
request for the appointment 0f an out-of-county judge. Regardless, Plaintiff s stated need for
28
not appropriate, Plaintiff assumes that an out-of-county judge will be unfamiliar with the local
\JO
rules of San Mateo County and, further, that such an appointment will result in an extra Burden
on court staff to specially manage the proceeding. (Motion, 6:22-24). Aside from the
speculative nature of these assumptions, in essence Plaintiff argues that the appointment of a
neutral out-of—county judge is impractical and infeasible in every instanceuthis attacks the very
10
foundation 0fthe remedy provided in Section 394. Presumably, the State Legislature intended
11
12
the remedy t0 be a feasible and equal alternative to transferring an action to a neutral County;
otherwise, such an alternative would be ineffective and defeat the purpose of the statute. (See
13
Imperial Merchant Services, Inc. v. Brandy G. Hunt (2009) 47 Cal. 4th 381, 386 (“[There is a]
14
presumption that the Legislature intends reasonable results consistent with the apparent purpose
15
0f the legislation. [Citation omitted]. Thus, our task is to select the construction that comports
16
most closely with the Legislature's apparent intent, with a view to promoting rather than
17
defeating the statutes’ general purpose, and t0 avoid a construction that would lead t0
18
246)”). Defendant believes that an out-of-county Judge will be well equipped to hear this non-
20
21
jury matter effectively and efficiently, as has occurred under this alternative 0n many prior
occasions.
22
23
C. Sacramento is not a Convenient Forum
appointment of a neutral out-of—countyjudge t0 hear the case in San Mateo County and will
26
27
highly benefit the parties, and the ratepayers/taxpayers who support them. There can be no
question that assigning such a neutral judge involves the least expense and least inconvenience.
28
County 0f San Mateo, and at least one 0f the Defendants’ counsel maintains an office here.
Moreover, and contrary to Plaintiff‘s assertion, it is very likely that testimonial evidence will be
.3)
required regarding the pr0per interpretation of the JPA, as well as related evidentiary matters.
Finally, while a Sacramento court presumably has the resources to resolve this suit, so,
too, would an appointed out—of—countyjudgc. Thus, this consideration does not weigh in favor
OOOO‘JON'JI
In light 0f all the factors described above, the pro tem assignment 0f a neutral courity
judge both accomplishes the purpose of section 394 and provides for a more convenient
alternative than that which Plainfiff proposes. Defendant respectfully requests that a neutral
If the Court declines t0 obtain appointment 0f a neutral judge, Defendant requests that the
14
case be transferred t0 a county located in the Bay Area, rather than to Sacramento County as
15
20 County ofSonoma [(1929)] 97 Cal. App. 588, section 394 does not entitle the
plaintiffto select any county it likes. By requiring venue t0 be laid in one ofthe
21 counties Specified under the other venue statutes, we permit the trial court to
exercise its discretion not only in choosing a neutral county in light 0f all factors,
22
including the convenience 0f both sides, but also with respect t0 the option 0f
24 Therefore, in exercising its discretion t0 choose a transferee county, this Court may
25 consider other venue statutes for guidance. Indeed, CCP section 398(3) governs the designation
26 0f a transferee county where the parties do not agree and mandates that it be transferred t0 the
27
28
County, located next to San Mateo County, is both the nearest and most accessible court.
Santa Clara would be a suitable venue. Santa Clara judges have relatively smaller caseloads
than do judges in Sacramento or other nearby counties, and, on average, cases are disposed of
OkOOONONlJi-bUJN—I
more quickly in Santa Clara than are cases that are tried in Sacramento. (2016 Court Statistics
Report, Request for Judicial Notice (“RJN”), Exhibit A). By contrast, Sacramento judges are
burdened with some of the highest caseloads in the state. (RJN Exhibit A).
Moreover, Santa Clara County is convenient not t0 just one party, but t0 all parties in
u—t
this action, as the Court acknowledges in County ofSan Bernardino v. Superior Court, supra,
r—t
H 30 Cal.App.4th 378, 389:
v—t
N [Section 394] encourages transfer t0 a neutral ground, but it is obvious that such
transfers—although often necessary, 0r at least desirable, to secure an impartial
DJ
H
trier 0f fact—can also involve extra expense and inconvenience to the parties.
p—I
~P~
Thus, the cases construing section 394 as a removal statute permit the action t0
be brought in a county which is convenient to one of the parties (the
at least
—- LII
defendant) and in which, in most cases, evidence and documentation are to be
found.
C\
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Alterhatively, Contra Costa and Alameda counties are the next nearest and most
accessible. As with Santa Clara, both of these counties have relatively smaller caseloads when
v—I
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compared to Sacramento Courts, and they report faster case dispositions. (RIN Exhibit A).
NO
move this action to the County 0f Sacramento, a venue to which Defendant does not consent.
NN
Section 394(a) provides:
N DJ
the additional costs 0fthe nonconsenting party occasioned by the transfer of the
N -P
cause, including living and traveling expenses of the nonconsenting party and
N LI'I
material witnesses . . . shall be assessed by the court hearing the cause against the
party requesting the transfer.
N O\
If this action is transferred out of the County of San Mateo, Defendant now reserves its
N ‘J
right to request reimbursement for any and all additional expenses they face as a result of a
N 00
Lb-JM
\JQUI
DATED: September 6, 2017
By:
WI
wmathan Wittwer
W
WER PARKIN LLP
5:85
Pa per from
responsiblu somms
EXHIBIT B
CARL PA. NELSON (cnclsonflbpmni.com) SBN 115118
TIMOTHY J. RYAN (gynnflbgmnixom) SBN 83775
ix)
CRAIG L. JUDSON (ciudsonfzfibgmni.com) SBN 114926
SHARON M. NAGLE (snaglcfibbgnmixom) SBN 179124
Bold, Polisncr, Maddow, Nelson & Judson
A Professional Corporation
LJ’I-PLN 2125 Oak Grove Road, Suite 210
Walnut Creek, CA 94598
(925) 933-7777 — Telephone
(925) 933~7804 — Facsimile
OOOOflQ
ll CITY OF HALF MOON BAY, a municipal c01’p0rati0n,) Case N0. l7 CIV 03092
. . )
Plamuff,
) STIPULATION AND ORDER
) REGARDING EXPENSES
13 VS-
) AND ASSESSMENTS OF
)
SEWER AUTHORITY MID—
14 GRANADA COMMUNITY SERVICES DISTRICT ) COASTSIDE
and MONTARA WATER AND SANITARY
)
15 DISTRICT: Assigned for all purposes t0
)
)
The Hon.
:6 Defendants. Dept.
)
19
Real ‘Party In Interest
g
20 )
21
IT IS HEREBY STLPULATED by and among PlaintiffCITY OF HALF MOON BAY,
27 declaration of the parties’ respective rights and ofiligations under Lhc February 3, I976
8, hereinafier called “the JEPA,” principally with respect to whether certain activities (126., work
l
’
STIPULATiON AND ORDER
Regarding SAM Expenses and Assessments
related to the “intertie pipeline and attendant pumping facilities") are properly included within
“[t]he total expenses ofopel‘ation and maintenance ofall ofthe components ofthe Present
Project” t0 “be shared in a manner based on flows into the single consolidated treatment plant
facility" 01' separate “Projects" regarding which each Member Agency may choose whether 01‘
not “t0 be a participant.” (Terms in quotes are from the JEPA as amended.)
OOOOMOU‘IAUJMfl
at all times relevant herein, was a local agency duly organized under the Sanitary District Law ol'
1923, and now is existing and authorized under the Community Services Dism'ct Law. with its
at all times relevant herein, was a local agency duly organized under the Sanitary District Law 0f
1923 also exercising the powers of a county water distn'ct pursuant t0 Health and Safety Code
Section 65 l 2.7, and now is existing and authorized as a Water and Sanitary District, with its
\OWNJOLn-QUJNH
4. The Real Pany In Interest, SEWER AUTHORITY MID-COASTSIDE (“SAM"),
is and, at all times relevant herein, was ajoint powers agency duly organized under the JEPA,
pursuant to the Joint Exercise ofPowers Law, Govcmment Code section 6500 er seq. SAM‘S
20, submitted to the governing bodies ofthe Member Agencies for approval, and specifies that final
approval by SAM shall require the prior consent 0f all Member Agencies. On June 12, 2017, the
SAM Board submitted to each Member Agency for approval a General Budget for Fiscal Year
2017-2018. GCSD and MWSD approved the General Budget as presented, but CITY only
approved a portion ofthe General Budget, specifically declining t0 approve the ponion ofthc
General Budget characterized as the “Infrastructure Division," which includes the repair and
replacement ofa segment 0f the Intertie Pipeline System (from Stations 51+50 to 73-1-50) and the
repair and replacement of a surge tank at the Pomola Pump Station, as well as related costs for
which did noI occur. As a result, since the cumznt fiscal ycar began on July l, 20l7, pursuant to
L»)
Resolution 8-20I7, SAM has bccn drawing down its Operating Reserves lo continue the
collection, transmission, treatment, and disposal ofthe wastewater generated within the
LII
territories Ofthe Member Agencies, At the rate SAM has been drawing down its Operating
NJ
7. SAM has no funding mechanism ofits own I0 continue operations other than
drawing upon its Reserves and relying upon Member Agency payments OfIheir respccrivc
budgeted obligations. Without an approved Genera] Budget. SAM has no current authomy to
issue invoices to the Member Agencies t0 cover expenses associated with the collection,
transmission, treatment, and disposal 0fthe wastewatcr generated within thc Member Agencies’
tcn'itm'ics. Failure to continue SAM‘S operations not only threatens t0, but will. seriously
8. The Panies desire that SAM continue the collection, transmission, treanncnt, and
disposal 0fthe wastewater generated within the Member Agencies’ Ierriton'es to protect the
16 public health, safety, and welfare, and to enable this to continue, hereby stipulate as follows:
a. SAM shall Operate pursuant t0 its Fiscal Year 20I7-20 l 8 General Budget
as approved by the SAM Board for submittul t0 each Member Agency for approval on
June 12, 2017 in the fonn heretofore presented to the Member Agencies,
b. SAM shall issue monthly invoices t0 the Member Agencies based on the
Fiscal Year 2017-2018 Genera] Budget, each invoice comprising onc-twelfih ofthe
Division," and shall pay any amount for the repair and replacement of a segment 0f the
Intenie Pipeline System (from Stations 5 1+50 to 73+50) and the repair and replacement
ofa surge tank at the Portola Pump Station, as well as related costs, including without
limitation those for the SAM Engineering 8: Construction Contracts Manager. The CITY
Ix)
days ofreceipt the invoices described in Subpamgraph 8b; provided, that as to any
payment ofthat portion shall bc without prejudice t0 the position ofany party to this
litigation. In other words, no waiver, estoppei 0r other legal 0r equitable bar as t0 any
party shall arise fi'om the CITY’S payment under protest pursuant t0 this stipulation or
OKDC/JMOUIJBUJ
any order arising from it. Any claim 0f any party as t0 any portion of the 201 7- 8 l
General Budget as referenced in Paragraph 5 (including but 1101 limited [0 any payment
under protest) may be resolved by funher agreement Ofthc panics, which may result
.-
from thc panics‘ participation in “any mutually agreeable method ofsettlement" umlcr
.—
-—-
.—-
li nbove-captioned litigation,
._. U)
9. This stipulation is intended t0 enable SAM to continue its ongoing Operations and
._
J‘—
proceed with expenditures ill accordance with the 2017-1 8 General Budget as referenced in
U1
_.
Paragraph S, and no language herein is to be construed as a waiver of'any claim, cause ofactiom
O defense, objection t0 any procedural hatter (including without limitation, objection to seeking an
_.
—‘ \J
altemative venue pursuant t0 section 394 0fthe Code 0fCivi] Procedure). or otherwise to be
-—-
W construed as a waiver 0f 0r consent t0 any matter not expressly contained herein, including but
—-
0 not limited to any 1‘ight(s) ofany party contained in the JEPA. Notwithstanding the foregoing,
[\J
O the parties further agree that SAM may, without funher action by its Board (other than such
2] actiou(s) required t0 award censtmction contracts and supporting service contracts): expend [he
fimds shown apgropn'ated by the “Infrastructure Division" Ofthe FY 2017-20] 8 General Budget
as referenced in Paragraph 5 specifically related to the repair and replacement ofa segment 01'
the Intenic Pipeline System (from Stations 5 l +50 t0 73+SO) and the repair and replacement ofa
surge tank at the Portola Pump Station, a3 well as relatéd cosm, including without limitation
those for the SAM Engineering & Construction Contracts Manager (collectiVely, “Infrastructure
Division Costs"). The panics agree that expenditure OfIhe Int‘rastmct‘ure Division Costs is
necessary t0 enable: compliance with environmental and other laws governing SAM’S operations
Budget is implemented expeditiously and without further delay arising from the dispute which
10. This stipulation shall be effective and binding upon the parties as 0f the date of
the last signature hereon. Nevertheless, the parties jointly request the Court to order
NOOONJONU‘I-DWNH
11. The panics further agree that the public interest provides that this stipulation may
be deemed to be SAM’s reSponsive pleading herein, which neither admits or denies the
allegations 0f the Complaint 0r any Cross-Complaint(s), and that SAM shall be among the
H O parties entitled t0 enforce the provisions of this stipulation in this action, and shall be a party
>—«
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bound by the judgment rendered herein without the necessity to appear at conferences or trial,
h—a
N provided that this stipulation is approved and ordered implemented by the Court.
& JUDSON
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A
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ON
By:
Carl
WM Mm
RA. Nelson, Atlomeys for Rca! Party In Interest
SEWER AUTHORITY MID-COA’STSIDE
a—t “-4
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c By:
Michael G. Colantuono, Attorneys for Plaintiff
NO CITY OF HALF MOON BAY
N_
Dated: WITTWER PARKIN, LLP
N [\J
N U.)
By:
Jonathan Wittwer, Attorneys for Defendant
Mh GRANADA COMMUNITY SERVICES DISTRICT
N LII
[‘3 ‘4
Budget is implemented expeditiously and without further delay arising fi'om the dispute which
10. This stipulation shall be effective and binding upon the parties as of the date of
\DOO-JQU‘I-bwm.‘
the last signature hereon. Nevertheless, the parties jointly request the Court to order
11. The parties fin-ther agree that the public interest provides that this stipulation may
be deemed to be SAM’s reSponsivc pleading herein, which neither admits or denies the
allegations of the Complaint or any Cross—Complaint(s), and that SAM shall be among the
parties entitled to enforce the provisions of this stipulation in this action, and shall be a pany
bound by the judgment rendered herein without the necessity to appear at conferences or trial,
provided that this stipulation is approved and ordered implemented by the Court.
By:
Carl RA. Nelson, Attorneys for Real Party In Interest
SEWER AUTHORITY MID-COASTSIDE
NNNNMMNMNp—AHHHHh—tr—Au—IHH
Dated: COLANTUONO, HIGHSMITH & WHATLBY, PC
By:
Michael G. Colantuono, Attorneys for Plaintifi
Och-JGUI-DWNHOCWQONUI#WNHO
CITY OF HALF MOON BAY
By:
Jonathan Wittwer, Attorneys for Defendant
GRANADA COMMUNITY SERVICES DISTRICT
By: flfiMM/W
David E. Schn‘cker, Attorneys for Defendant
MONTARA WATER AND SANITARY DISTRICT
Budget is implemented expeditiously and without further delay arising from the dispute which
10. This stipulation shall be effective 21nd binding upon the patties as 0fthe date 0f
the last signature hereon. chcnhelcss, the panics jointly request the Court to order
l l. The parties further agree that the public interest provides that this stipulation may
be deemed t0 be SAM'S responsive pleading herein, which neither admits 0r denies the
allegations 0fthc Complaint or any Cross—Complainfls)‘ and that SAM shall be among the
parties entitled 10 enforce the provisions ofthis stipulation in this action, and shall be a party
bound by the judgment rendered herein without the necessity t0 appear at conferences 0r trial,
provided that this stipulation is approved and ordered implemented by the Court.
By:
Carl ?.A. Nelson, Attorneys for Real Party In Interest
SEWER AUTHORITY MID—COASTSIDE
By:
Michael G. Colantuono, Attorneys for Plaintiff
CITY OF HALF MOON BAY
By:
J athan Wittwer, Attomeys for Defendant
ANADA COMMUNITY SERVICES DISTRICT
Budget is implemented expeditiously and withom fimher delay mismg from tbs dispute which
10. This stipulation shall be effective and binding upon the parties as ofthc date of
the last signatum hereon. Neverthelesg the partiesjointly mquest the Court to order
\oooqoxtnuhwto
11. The parfiés finiher ages that the public interest provides that this stiplflation may
allegationsofthe Complaint or any Cross~Complaint(s), and 1113; SAM shall be among the
panic; entitled to enforce flw‘provisions of this sfipugation in this action, and shall be a palty
bound by the judgment rendercd herein without the necessity to appear at conferences or rial,
provided that this stipulation is approved and ordered implemented by the Com.
Dated: BOLD, POLISNER, MADDOW, NELSON & JUDSON
By:
Carl PA. Nelson, Attorneys for Real Party 111 Interest
SEWER AUTHORITY MID-COASTSIDE
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LAW OFFICES 0F DAVID E. SCHRICKER, P.C.
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GRANADA COMMUNITY SERVICES
18 MONTARA WATER AND
DISTRICT and
SANITATION DISTRICT,
19
BY FAX
Defendants,
20
23
24
GRANADA COMMUNITY SERVICES
25 DISTRICT,
26 Cross-Complainant,
27
VS.
28
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Cross-Defendant,
Lh-hbJN
ONOOOQQ
PROOF OF SERVICE
11 I am over the age of 18, and not a party t0 this action. My business address is I47 S.
River Street, Suite 221, Santa Cruz, CA 95060, which is located in Santa Cruz County.
12
13
On September 6, 201 7, I caused the following document(s) entitled:
14
l. GRANADA COMMUNITY SERVICES DISTRICT’S OPPOSITION TO
15 MOTION FOR MANDATORY CHANGE OF VENUE (CCP § 394)
16
2. REQUEST FOR JUDICIAL NOTICE IN SUPPORT OF OPPOSITION TO
17
MOTION FOR TRANSFER OF VENUE
21 t0 be served on the party(ies) or its (their) attomey(s) of record 1n this action listed below by the
following means:
22
23 BY MAIL. By placing each enve10pe (with postage affixed thereto) in the U.S. Mail
at the law offices of WITTWER PARKFN LLP, 147 S. River Street, Suite 221, Santa
24 X Cruz, California, addressed as shown below. I am familiar with this firm’s practice
for collection and processing of correSpondcnce for mailing with the U.S. Postal
25
Service, and in the ordinary course of business, correspondence would be deposited
26 with the U. S. Postal Service the same day it was placed for collection and
processing.
27
BY HAND-DELIVERY. By causing a true COpy thereof, enclosed in a sealed
28 envelope, to be delivered by hand to the address(es) shown below.
BY OVERNIGHT DELIVERY. By placing with the U.S. Postal Service for
overnight delivery a true copy thereof, enclosed in a sealed envelope, with delivery
charges paid by WITTWER PARKIN LLP, addressed as shown below.
I certify and declare under penalty of perjury under the laws of the State 0f California
that the foregoing is true and correct.
NMIQ/
§ 6103
ATCHISON, BARISONE, CONDOTTI & KOVACEflcfl
333 Church Street l
ET--3 A 10‘» HS
Santa Cruz, California 95060
Telephone: (831) 423—8383 SgLEEfiO‘fiFCTgLERC‘gURg
Facsimile: (831) 423-9401 COUNQE'OF SANTA CLARA
E
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E}FE EA
MICHAEL G. COLANTUONO, State Bar N0. 143551
MColantuono@chwlaw.us
.
420 140
Sierra College Drive, Suite _ H
Grass Valley, California 95945—5091 ‘;7_G,;,_G’;0;
Telephone: {530) 432-7357 Hm
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Facsimile: (530) 432—7356 ‘“ “‘1'“!
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CITY 0F HALF MOON BAY I
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SUPERIOR COURT OF THE STATE 0F CALIFORNIA
& Drive.
Valley.
15
1 7 C v 3 1 6 9 2 7 .n
CITY OF HALF MOON BAY, a municipal CASE NOA-EIGW
Colantuono.
Slenc
Gloss
16
corporation, Unlimited Jurisdiction
a
420
17
Plaintifi‘, (Case assigned to Hon Roben Foiles / Dept 21)
18 h
v. ‘
CITY 0F HALF MOON BAY’s
19 ‘
REQUEST FOR JUDICIAL NOTICE IN
.20
GRANADA COMMUNITY SERVICES SUPPORT OF MOTION FOR
MONTARA WATER AND
DISTRICT and MANDATORY TRANSFER 0F VENUE
21 SANITARY DISTRICT,
'
.
Complaint Filed: July 11, 2017
Defendants.
Hean'ng Date: September 19, 2017
‘
23
and Time: 9:00 am.
Dept: 16 (Law and Motion)
24
SEWER AUTHORITY MID-COASTSIDE,
25
Real Paxty In Interest
26
27
28
requests this Court take judicial notice pursuant t0 Evidence Code sections 452 and 453 of the
California Water Board Complaint for Administrative Civil Liability (August 21, 201 7). A true and
correct copy 0f the Administrative Complaint and Attachment t0 the Administrative Complaint is
This Court may judicially notice file Water Board’s Admixfistrative Complaint and
Code section 452, subdivisions (c), (g), and (h). The Court may judicially notice Exhibit A under
Evidence Code section 452 (Smith v. Workers' Compensation Appeals Bd. (2002) 116 Cal.Rpu'.2d
10 728, 732 & fi1. 3 [Conn oprpea] granted judicial notice 0f reéords from proceedings before the
PC
lI Workers' Compensation Appeals Board and other information available fiom the Contractors State
MO
thtley. 12 License Board, both California state agencies.]; Citizensfiv Jobs and the Economy v. County 0f
SUIIE
95945-7356
a 13 Orange (App. 4 Dist. 2002) IIS Ca1.Rptr.2d 90, 94 [Court gamed a request for judicial notice of
Olive.
nghsmlth
CA l4 planning documents regarding aixports created by the state agency showing that 34 California
CoIIege
Volley,
15 counties do not have airport service, which supported argument that an airport is not an essential
Sleno
Gross
16 governmental service.].) Additionally, the Water Board’s Administrative Complaint and Attachment
.
Colantuono.
420
I7 t0 the Administrative Complaint in Exhibit A 0fthis request is a public ddcument not reasonably
18 subject to d15pute, and is therefore capable of immediate determination of accuracy by resort to
19 sources of reasonably indisputable accuracy. (Evid. Code, § 452, subd. (11).) The Administrative
20 Complaint and Attachment A to the Administrative Complaint is available t0 the public on the
21 oflicial website of the California Water Board.
24 Exhibit A is relevant because it supports City’s argument that time is of the essence in this
25 matter due to the public health, safety, and environmental issua involved in sewage conveyance and
26 treatment. (Mangim' v. RJ. Reynolds Tobacco Co. (1 994) 7 Ca1.4th 1057, 1063 [relevant evidence
27 has “any tendency in reason to prove or disprove any disputed fact that is of consequence to the
28
2
CITY OF HALF MOON BAY'S
REQUEST FOR JUDICIAL NOTICE ISO MOTION FOR CHANGE OF VENUE
184373.]
determination 0f the action.”] [ovemlled 0n unrelated grounds in 1n re Tobacco Cases II (2007) 41
For the foregoing reasons, the City reSpectfqlly requests this Court take judicial notice of
PC
MO
11 491W 567d
MICHAEL COLANTUONO
G.
//?1\l
Whotley,
12 PAMELA GRAHAM
K.
SUITE
959467356
EDUARDO JANSEN
& 13 Attorneys for Plaintiff
Drlve.
College
Volley.
15
Slelro
Gloss
16
Colonruono.
420
17
18
19
20
2]
22
23
25
26
27
28
3
CITY OF HALF MOON BAY’S
REQUEST FOR JUDICIAL NOTICE ISO MOTION FOR CHANGE OF VENUE
184373J
EXHIBIT A
CALIFORNIA REGIONAL WATER QUALITY CONTROL BOARD
SAN FRANCISCO BAY REGION
Discharge Prohibition III.E ofthe SAM Pennit prohibits any sanitary sewer
overflow that results in a discharge of unheated or partiaUy-h-eated wastewater to
waters of the United States.
011 Febmary 28, 2017, thmugh Mamh 3, 2017, due to a failure 0f the Gianada force
main, appmximately 357,000 gallons ofunUeatcd sewage discharged finm the
Discharger’s collection system as a sanitary sewer overflow (SSO) into an unnamed
creek located in the City of Half Moon Bay, and ultimately tQ the Pacific Ocean.
The Discharger recovered approximately 13,000 gallons of the untreated sewage
and returned it to its collection system. The Granada force main failure was likely
caused by internal cavitation, with the sewerpipe’s age and abrasive wear due to
grit oonII‘ibuting to the failure.
Water Code section 13385, subdivision (a)(Z) provides that a person who violates a
waste discharge requirement permit issued pursuant to Chapter 5.5 or any water
quality certification issued pursuant to scctjon 13 160 shall be liable civilly in
accordance With section 13385.
8. On or about February 28, 2017, through March 3, 2017, and for four days, the
Discharger violated SAM Permit Discharge Prohibition HLE by discharging
approximately 344,000 gallons ofuntreated sewage t0 waters of the United States,
and is thereby subject to civil liability under Water Code section 13385, subdivision
(8X?)
The details of this violation are set forth in full in the accompanying Administrative
Civil Liability Factors (Attachment A), which is incorporated herein by this
reference as if set forth in full.
MAXHVIUM LIABILITY
10. Water Code section 13385, subdivision (c) provides that any person who violates a
waste discharge mquirement issued pumuant to Water Code Chapter 5.5 is subject
t0 administrative fiabilities ofup to $10,000 per day of violation, and up t0 $10 per
gallon for each gallon discharged but not cleaned up over 1,000 gallons. The SSO
took place over a four—day period. Accordingly, the maximum potential civil
liability for the Discharger’s Februaxy 28, 2017 through March 3, 2017, SSO is
$40,000 for the four days of violation, plus $3,430,000 for the 344,000 gallons
discharged, but not cleaned up, less the 1,000 gallon as required by statute, for a
total maximum adminisrmtive civil liability 0f $3,470,000.
Complaint No. R2-2017—1024 3 August 21, 2017
Sewer Authority Mid-Coastside
Granada Force Main SSO
MINIMUM LIABILITY
11. Water Code section 13385, subdivision (e) requires, at a minimum, that an
administrative civil liability be imposed that will capture the economic benefit to
the violator fiom the violation. In this case, the Disoharger realized an economic
benefit of approximately $1 79,000 form ofcost savings for delaying the
in the
construction and replacement of the failed force main for nine years. The State
Water Resources Control Board’s Water Quality Enforcement Policy (Enforcement
Policy) recommends the Regional Water Board assess liability at least 10 percent
higher than the economic benefit so that liabilities are not construed as the cost of
doing business and that the assessed liability provides a meaningfill deten‘ent to
future violations. Accordingly, the minimum administrative civil liability for the
Discharger’s SSO is $196,469. See Attachment A for the full economic benefit
analysis.
PROPOSED LIABILITY
factors contained in Water Code section 13385, subdivision (e) and the
Enforcement Policy, which specifies the factors that the Regional Water Board
shall take into account in establishing the amount of discretionary liability for the
alleged violations. '1”th factoi—s include the nature, circumstance, extent, and
gravity of the violations; the Discharger’s ability to pay, ability to continue in
business, prior history of violation, degree of culpability, and ecommic benefit or
savings, if any, multing from the violations; and other matters as justice may
require.
13. Based 0n the penalty calculation methodology set forth in section VI of the
Enforcement Policy, the Regional Water Board Pmsecution Tm
recommends that
the Regional Water Board should impose administrative civil liability against the
Discharger in the amount of $522,700 for the discharge ofuntreated sewage to the
Pacific Ocean on February 28 through March 3, 2017.
(3‘3“ MSW
Dyan C. Whyte
Assistant Executive Officer
Factors in Determining
Administrative Civil Liability
The State Water Resources Control Board Water Quality Enforcement Policy (Enforcement
Policy) establishae a methodology for assessing administmtive civil liability. Use of the
methodology addresses the factors required by Water Code sections 13327 and 13385,
subdivision (e). Each factor in the Enforcement Policy and its corresponding category,
adjustment, and amount for the alleged violation, is presented below. The Enforcement Policy is
at:
ALLEGED VIOLATION
sanitaly sewer overflow (SSO) that discharged a total of 357,000 gallons (gal) of unheated
sewage to the Pacific Ocean due to a force main failure, resulting in a violation of Discharge
Prohibition E 0f Older No. R2-2012—0061, National Pollution Discharge Eliminatioa System
(NPDES) No. CA0038598 (SAM Permit).' Of the 357,000 gal, the Discharger recovered 13,000
gallons and returned it system? The SSO discharged to an unnamed creek
to i13 collection
located in HalfMoOn Bay and ultimately into the Pacific Ocean, a water of the United States.
Discharge Prohibition III.E of the SAM Permit prohibits any SSO that results in a discharge of
untreated or partially treated wastewater lo waters of the United States.
In its April 14, 2017, SSO Technical Report, the Discharger stated the failure in the “Granada”
force main was most likely caused by internal cavitation as well as the age of the sewer pipe and
abrasive wear due t0 grit
For the above violation, the Discharger is subject to administrative civil liabilities pumuant t0
Water Code section 13385, subdivision (a)(2).
In an August 10, 2017, email, the Discharger provided its 357,000 gallon SSO volume mlculation bascd on flows
'
fi’om the Portola and San Pablo Pump Stations, mcasurcd flow fi-om Frenchman’s Creek, and treatment plant
influent flow.
3
California Integrated Water Quality System certified SSO repon for Event 1D 833531.
Page A1 ofS
9s
6.:
PENALTY ASSESS
DISCUSSION
FACTOR MENT
Harm 01’
'
Uss for obscrvcd or likely subsmmial, temporary restrictions on beneficial uses [c.g._ 12$
Discharge than five days]..."). The San Francisco Bay Water Quality Control Plan dwignatx
Violations the following beneficial uses ofthc Pacific Ocean: industrial service supply (IND),
commercial and Sport fishing (COMM). shell harvesting (SHELL), marine habital
(MAR), fish mig‘ation (MIGR), preservation ofrarc and endangered species
(RARE), fish spawning (SPWN), wildlife habitat (WILD), water contact recreation
(RECI), noncontacl water recreation [R.ECZ), and navigation (NAV). The discharge
of untreated wasiewater caused a three—day beach closure, which was a temporary
restriction of‘the RECI beneficial um} At a minimum the thrcc-day beach closure
was a four-day restriction on ths waler contact recreation beneficial use, meeting the
definition for an above modcmtc factor.
Physim], 3 Degree of Toxicity — Above Moderate
Chemical, An “above modems” dame of toxicity is selected because the sewage discharged
Biological. or was not treated, potentially toxic to aquatic organisms, and contained bacteria at
Thermal lcvcls cxcmding human health standards. Therefore, the discharge posed an above
Characieristics moderate risk to polemial reccpmrs.
(chee of
Toxicity)
Susceptibility to 1 Susceptibility to Cleanup — N0
Cleanup or Less than 50 percent ofthe SSO was amenable 1o cleanup or containmcnt because,
Abatement once i1 discharged lo the ocean. the ocean current prevented cleaning up or
containing the untreated sewage.
Per Gallon 0.60 Deviation from Requirement — Major
Factor for Discharge Prohibition E ofthc SAM Permit prohihfls discharge of untreated sewage
Discharge to waters oflhe United StaIcS. By discharging to watcrs ofthe United States. the
Violations discharge rendered this prohibition ineffective in its essential fimctions. This
represents a “major” deviation fi‘om the requirement based on Table 2 ofthc
Enforcement Policy.
Adjustment for $2/ga] The Enforcement Policy allows for an adjustment of liability fi-om $10 per gallon for
High Volume high volume discharges, provided the adjuslmcm ”mdom not result in an
Discharges inappropriately small penalty." The Enforcement Policy recognizes sewage Spills can
be very large and recommends an amount of$2 per gallon for large scmgc spills.
'I'he discharge totaled 344,000 gallons, which is a high volume. Application of an
adjusted liability of$2 per gallon is appropriate for thc SSO because the volume of
the SSO was high and it does notresult in an inappropriately small penalty.
—
.
Statutory Max $1 0,000 The statutory maximum per—day liability is $10,000 pcr Water Code section 13385,
Pcr Day subdivision (c)(l ).
3
San Mateo County Environmental Hcaith July I3, 2017, email.
Page A2 of5
SAM February 28 to March 3, 2017, SSO
Auachment A -
Administrativc Civil Liability Factors
PENALTY ASSESS
DISCUSSION
FACTOR NIENT
=
Initial $435,600 The initial liability is determincd as follows: Initial Liability [(per gallon factor) x
(per gallon liability) x (gallons discharged to surface water minus 1,000 gallonsfl +
Liability
[(per day factor) x (maximum per day liability) x (days ofSSO duration)] = [(0.6) x
($2/gallon) x (343,000 gallons” + [(0,6) x ($10,000/day) x (4 days)].
Cleanup and 1 A neutral cleanup and coopemtion factor is appropriate because the Discharger
Cooperation cooperated during investigations, timely reported the SSO, and timcly submitted the
required SSO Technical Report.
History of 1 A neutral history of violations factor is appropriate bemuse the Regional Water
Violations Board has not previously taken formal enforcement againsl the Discharger for SSOs.
Total Base $522,720 Each fictor relating Io the Diseharger’s conduct is multiplied by the initial liability
three member agencies and remaining revenue comes from direct service fees and
miscellaneous revenue. Based on the overall budget and sources ofrcvenue for the
Discharger, the Dischargcr has the abiliiy to pay the preposed liability amount and
stay in business.
Economic $179,000 Parsuant to Water Code section 13385, subdivision (e), civil liability, at a minimum,
Benefit must be assessed at a level that recovers [he economic benefiL if any, derived from
the acts that constitute a violation. As documented in this complaint, the Discharger’s
failure to address structural Sufi
in the Granada force main is likely to have
contributed to the pipe failure resulting in the SSO. The BEN financial model
provided by the U.S. Environmental Protection Agency was used t0 compute the
total economic benefit of noncompliance.’ Cost mfimale and other assumptions are
detailed in the attached Table 1. The general assumptions used to determine the
economic benefit are summarized below.
The SSO identified in this complaint is likely the rmlt ofsignificant internal
deterioration ofthe force main, a condition the Dischargcr has been aware of since a1
last November 2009, as documented in the SAM Intertie Pipeline System Review
and Evaluation Report that SRT Consultants prepared for 1he Discharger in
December 2009. In the repon, SRT Consultants describes the cause of a force main
failure resulting in a SSO on November 1, 2009, as “an internal degradation
mechanism, most iikely [from] sediment impingement or scouring.” The 14—inch—
diameter ductile iron force main was installed in 1979, with an estimated service life
‘
Discharger's April 14. 2017, SSO Techniwt Report
5
Dccembar 2009 SRT Consultants SAM Imertie Pipeline System Review and Evaluation Report
°
http'J/samcleanswa1er.org/documems
7
U.S. EPA's Economic Benefit Model (BEN) calculates a dischaxgcr‘s economic benefit of noncompliance from delaying or
avoiding compliance with environmental regulations, Sec humllwwwxpa.eov/cnfomementlpcnaltv-and-financial-modcls for
additional infom'ation.
Page A3 of5
SAM February 28 Io March 3, 2017, SSO
Attachmcnt A - Administrative Civil Liability Factors
PENALTY ASSESS—
DISCUSSION
FACTOR MENT
of25 years Therefore, the force main had already exceeded its service life al the
time ofthc 2009 SSO.
The cos! ofrcplacing 7,100 Iinmr feet ofthe Granada force main wili exceed
$771,000 (with an stimated completion date ofOctobcr 2018, nearly 9 yws aficr
the November 2009 SSO identified structural deficiencies and 14 years beyond the
force main’s estimated service 1ifc).3 By delaying construction and replacement, the
Dischargcr has enjoyed an economic benefit. Using the penalty payment date as thc
dale ofthc hearing ofNovember 8, 2017, the total economic benefit ofdelayed
action was approximately $ 179,000. Chang$ to the payment date, or the compliance
Maximum $3.47 M Water Oodc section 13385, subdivision (c) allows up to $10,000 for each day in
Liability which the violation occurs, and $10 for each gallon exceeding 1,000 gallons that is
discharged and n01 cleaned up. The maximum liability is based on 344,000 gallons
and four days ofviolation.
Minimum $196,469 Water Code section 13385, subdivision (e) mquircs that, a1 a minimum, the
Liability economic benefit received as a result of the violation be recovered. The Enforcement
PolicyIp. 21) states that thc total liability must be at least 10 percent higher than the
economic benefit, “so that liabilities are not construed as the cost of doing businc$
and the med liability provides meaningful deterrent to future violan'ons.”
Therefore the minimum total liability associated with the economic benefit was
determined to be $196,469.
Final $522,700 The final liability amount is the total base liability afier appropriate adjustments for
ability to pay, economic benefit, other factors as justics may require, maximum
Liability (rounded)
liability, and minimum liability. 1n this case, the final liability is the same as the total
base liability.
3
December 2009 SRT Consultants SAM lnlcrtic Pipeline System Review and Evaluation Report
Page A4 of S
SAM February 28 to March 3, 2017, SSO
Attachment A - Administrative Civil Liability Factors
Table 1
— Economic Benefit Analysis
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Page A5 ofS
PROOF OF SERVICE
City ofHalfMoon Bay v. Granada Community Services District, er a1.
I am employed in the County ofNevada, State of Califomja I am over the age of 18 and not
a pany to the within action. My business addracs is 420 Sierra College Drive, Suite 140, Grass
Valley, California 95945-5091. On September 12, 2017, I served the document(s) described as
CITY 0F HALF MOON BAY’S REQUEST FOR JUDICIAL NOTICE 1N SUPPORT 0F
MOTION FOR MANDATORY TRANSFER 0F VENUE on the interested parties in this action
addressed as follows:
95945v?356
8L
Drive.
13
K BY E-MAIL OR ELECTRONIC TRANSMISSION: Based 0n a court order or an
agreemen 0f the parties t0 accept service by e—mail or electronic transmission, by causing the
14
HIghsmHh
documents to be sent to the persons at the e—mail addresses listed on the service list on
September 2017 from e-maiI address: PGraham@chwlaw.us. No electronic message or other
College
VoHey.CA
15 12.
indication 'that the transmission was unsuccessful was received within a'reasonable time afler the
Slerro
16 transmissi0n.
Glen
CoIanIuono.
420
I declare under penalty ofperjury under the laws ofthe State of California that the above is
true and correct.
18
Executed on September 12, 2017, at Grass Valley, California.
19
20 " '
'
AshleyA. Lloy
26
27
28
PROOF 0F SERVICE
City OfHaU'Moon Bay v. Granada Community Services District, et a1.
Ix.)
140
Whafley.
12
SUITE
95945-7356
Christine C. Fitzgerald CharlesRA. Nelson
& 13 Fitzgerald Law Ofiices Maddow, Nelson & Judson
Bold, Polisner,
Drlve.
345 Lorton Avenue, Suite 301 2125 Oak Grove Road, Suite 210
14
nghsrnlth
CA
Burlingame, CA 940 1 0 WainutCreek, CA 94598
Conage
Telephone: (650) 348-51 95 Telephone: (925) 933-7777
Volley,
15
Facsimile: (650) 239-1207 Facsimile: (925) 933-7804
Sleno
Glass
16 Email: fitzgeraldlaw@sbcglobal.net Email: cnclson@bpmnj.com
Colantuono.
Attorneysfor Defendant Atlorneysfor Real Party in Interest
£20
17 Montara Water and Sanitary District Sewer Authorizy Mid—Coastline
13
19
Courtesy Capy via Email:
Anthony P. Condotti, City Attomey
20 City of Half Moon Bay
Atchison, Barisone, Condotti & Kovacevich
21 333 Church Street
Santa Cruz, CA 95060
22
Telephone: (83 1) 423—83 83
Facsimile: (831) 423—9401
23
Email: TCondotti@abc-Iaw.com
24 Attorneysfor Plaintiff
City ofHalfMoon Bay
25
26
2]
28
2
CITY OF HALF MOON BAY’S
REQUEST FOR JUDICIAL NOTICE ISO MOTION FOR CHANGE OF VENUE
1843711
magma“
ANTHONY P. CONDOTTI, State Bar No. 149886 Nb mpt from Filing Fees
5COWOWIWC‘LAW'COM fl:
i emment Code § 6103
ATCHISON, BARISONE, CONDOTTI & KOVACEVICH
,
333 Church Street
Santa Cm,Califomia 95060 29W OCT “3 A '3 “5
Telephone: (831) 423-8383
0F TOHE
Facsimile: (831) 423—9401 3%LEFEFI‘3KC flc‘gléfica
SCANNED PAMELAKGRAHAM,StateBarNo.216309
‘-
¢ SEP I 2 2017
'
PGmham@chwlaw.us
Q
EDUARDO JANSEN, State Bar No. 302757
Elansen@chwlaw.us
COLANTUONO, HIGHSMITH & WHATLEY, PC
420 Sierra College Drive, Suite 140
Grass Valley, California 95945- 5091
b
:JTP—AE‘IV—
03092
PC 11 l
Whalley.
MO
12
CITY 0F HALF MOON BAY { Ill EV E m ”WEE HR'N Hf!
i
SUITE
95945-7356
13
SUPERIOR COURT OF THE STATE 0F CALIFORNIA
8c
Drlve.
Volley,
15
v.
19
REPLY IN SUPPORT OF MOTION“
20
GRANADA COMMUNITY SERVICES FOR MANDATORY TRANSFER 0F
DISTRICT and MONTARA WATERAND VENUE (CCP § 394)
2 I SANITARY DISTRICT,
Complaint Filed: July 11, 201 7
22 Defendants.
23.
Hearing Date: September 19, 2017
and Time: 9:00 am.
24
Dept: 16 (Law and Motion)
SEWER AUTHORITY MID-COASTSIDE,
25
Rea] Party In Interest.
26
27
28
10
PC
11
MD
Whatlev.
12
SUIIE
95945-7356
13
& Drive.
CA
14
nghsmnh
College
Volley.
15
Sieuo
Gross
16
Colanfuono.
420
I7
'18
19
20
21
22
23
24
25
26
27
28
Page(s)
Cases
Statutes
l40
Whatley.
12
SUITE
05946-7356
13
& Drlve.
nghsmlih
CA 14
Collega
Volley.
15
Sleua
Gmas
16
Colaniuono.
420
17
13
19
20
21
22
23
24
25
26
27
23
2
CITY OF HALF MOON BAY’S REPLY
IN SUPPORT OF MOTION FOR MANDATORY TRANSFER OF VENUE
1842214 _
-<‘:
M E M ORA N D U M
IQ
l. INTRODUCTION
By its Motion, Plaintifi‘ City of Half Moon Bay (“City”) seeks transfer to a neutral county
pursuant to Code of Civil Procedure section 394, which provides for a mandatory change of venue in
litigation between public cntitim. (Code Civ. Proc., § 394(a).) Defendants Montara Water and
Sanitary District (“Montara”) and Granada Community-Scrvices District (“Granada”), and Rea]
Palty in Interest Sewer Authority Mid-Coastside (“Authority”) d0 not dispute that section 394
mandates such Hansfer t0 a neutral venue in this politically sensitive action t0 guard against even the
potential for local prejudices. (County ofSan Bernardino v. Superior Court (1994) 3O Cal.App.4th
10 378, 386 (“San Bemardino”); Granada Opp’n at pp. 4, 7‘.) There is, thus, no doubt this case should
PC-
11 be sent to a neutral venue with capacity to efiiciently resolve it.
MU
WhaHeY. 12 Rather, opposing parties’ only gounds for challenging the Motion is t0 either have the action
SUIYE
95945-7356
& 13 u'ansferred to a difierent venue than Sacramento County, as suggested by the City, 0r to have the
Dllve,
nghsmlfh
CA
14 Judicial Council appoint an out-of—town judge fi’om a neutral county to try this case in San Mateo.
College
Volley.
15 The first point is a non-issue —- while the City maintains that Sacramento is the best Option because
Slerlu
Grass
16 ofits abundant resources and convenience to the parties, the City agrew there may be alternative
Colanluono,
420
17 venue that meet thwe criteria. Specifically, the City has n0 objection to the opposing parties’
18 suggestion of Santa Clara County, so long as it too can resolve this case quickly and efficiently.
19 On the second point, opposing parties’ request to keep this case in San Mateo County before
20 a Judicial Council—appointed neutral judge would not serve section 394’s legislative purpose nor the
21 unique circumstances ofthis case. Not all cases are suiéble for this alternative option ~ and this is a
22 case in point. Time is of the essence here due to the public health, safety, and enviromnental issues
23 involved in sewage conveyance and treatment. The parties need Swift adjudication of their funding
24 dispute, as evidenced by Montara’s and Granada’s recent filing of cross—complaints on these very
25
26
27
I
While only Granada has filed a substantive opposition, the others have joined in Granada’s brief,
and thus all three parties are referenced hereinafier as the opposing parties. The City will not engage
28 Granada’s premature cfi‘ort to litigate the merits of the underlying dispute, as that is not before the
Court on this procedural Motion to transfer venue.
. l
issues, to guide their impending next steps. Any risk ofde}ay in the Judicial Council’s assiglment
and special setting of future hearings and tn'al with a neutral judge — which will require continued
taxing of San Mateo’s limited stafl‘and rwourcmc even with a neutral judge — is unmerited and
._._______._..-.._._L._.~__L
and foremost, the City is entitled to transfer to neutral ground to ensure swifi adjudication before an
impartial court. (See San Bernardino, supra, 30 Cal. App. 4th at pp. 386—387 [purpose 0f
10 section 394 “to guard against local prejudices which semetimes exist and t0 secure to both parties
PC
11 to a suit a trial upon neutral ground”]; City ofAlameda v. Superior Com (1 974) 42 Cal. App. 3d
ldo
Whafley.
12 3 12, 3 1 6.) As defendants and real-party—in-interest concede, transfer is mandatory and the only real
SUITE
95945-7356
8:
13 question is where to send this case.
Drive,
CA 14 While section 394 ofl‘ers an altemative remedy ofhaving this case remain in San Mateo
HIghsmIIh
College
Volley,
15 County before a Judicial Council appointed—judge, thjs is not a viable alternative here.
Slerra
Gross
I6
Colanfuono.
420
I7
A. The Urgency ofAdjudicating this Matter Favors Transfer
18 Swifi and impafiial resolution of the parties’ funding obligations is needed t6 ensure the
19 continued safe and lawfifl operation of the agencies’ sewer systems and to protect public health,
20 safety, and the environment. This can be accomplished by transferring this action now to a court with
21 the resources to immediately begin adjudicating this case. On the other hand, there is a needless risk
22 of delay in requesting that the Judicial Council initiate the probess of finding and appointing an out-
of-tovm judge to try this case in San Mateo, confinning the appointment against possible efforts to
24 disqualify the assignment, and specially setting each and every step of this proceeding.
25 The facts belie the Opposing pam'fi’ contention there is no longer any urgency in this action
27 First, Even though the pam'es entered into a tempomxy stipulation agreement concerning
28 near—term funding for the Authority, there is still geat urgency to determine the parties’ ongoing
2
CITY OF HALF MOON BAY’S
REPLY
IN SUPPORT OF MOTION FOR MANDATORY TRANSFER 0F VENUE
1842214
financial obligations. The pafiiw’ stipulation is simply a temporary fix? “intended t0 enable [the
Authority] t0 continue its ongoing operations and proceed with expenditures in accordance with the
Expenses and Asswsments of Sewer Authority Mid-Coastside], '[I 9.) However, the Authority is
currently unable to fully plan, design, and build the necessary capital projects to replace portions of
the Intertie until it is determined which member agencies will pay for the replacement 0f the Intertie.
It is expected thal several factors impacting file cost ofrcplacing the Intertie — including the scope
and schedule ofthe replacement — will change based on how many member agencies fund the
capital project.
10 Second, Intertie replacement projects built pursuant to the partics’ temporary stipulation may
PC
ll result in an interim windfall to Defendants in the form of an interest-fiee loan. By the temporary
140
Whofley. 12 stipulation, the City has ageed to pay under protest for the repair and replacement of segments of
SUITE
8s
95945-7356
13 the Intertie — the very funding at issue in the Complaint — to enable the Authority to continue its
Drive.
CA
l4 ongoing operations. (Ibid) If the City is found not liable for a share ofthe estimated $4.4 million
HIghsmIfh
College
Volley.
15 cost to replace portions of the Intertie, which it believes will be the case, the City’s financial
Slena
Glass
16 participation in Intertie projects built pursuant to the pam'es’ temporary stipulation will mean the
Colanluonp.
420
17 City provided Defendants an interest-free loan. While a great deal for Defendants, the City 1's
not in
13 the position nor in the business of providing interest flee capital. These financial obligations need to
l9 be adjudged now.
20 Third, protracting this case will disu-act the Authon'ty fi—orfi getting its environmental house
in order. The Authority and Intertie are facing significant environmental concerns that must be
22 immediately addressed For example, fiom about February 28, 2017 through March 3, 2017, a
23 failure in an Intenie force main caused approximately 344,000 gallons ofuntreated raw sewage t0 be
24 discharged into a creek located in the City. (Request for Judicial Notice ISO Reply Brief, Exh. A
25 [Cabfornia Water Board ComplaintforAdministrarive Civil Liability, August 21, 2017].) Staff fi'om
26 the California Regional Water Quality Control Board (“Water Board”) has recommended the State
27 Water Board impose an administrative civil liability against the Authority of $522,700 for the
28
3
CITY 0F HALF MOON BAY’S REPLY
IN SUPPORT OF MOTION FOR MANDATORY TRANSFER OF VENUE
18427.14
discharge. (Ibid) The sooner this case is resolved, the sooner the Authority and member agencies
can focus on addressing the Authon'ty’s and Intertie’s environmental issues and moving forward.
Fourth, prolonging this litigation will increase litigation expenses for all member agencies.
The Authority’s participation in this case will needlessly increase litigation expenses for member
agencies, who are the Authority’s only funding source. For example, the Authority’s joinder in
Defendants’ Opposition to the City’s Motion to Change Venue is conceming t0 the City. The
Authority’s litigation expensm will likely be funded fiom the Authority’s general budget. Given that
under the parties’ Joint Powers Agreement the City is responsible for roughly half of the Authority’s
general budget, the City may be asked to pay approximately half of the Authority’s legal expenses in
10 this case. Yet, under the partiw’ stipulation, the Authority was ensured near-term funding, relieving
PC
11 the Authority of the need to actively participate in this present litigation. Despite the City’s bat
140
Whailey.
12 efforts t0 minimize litigation costs, the Authority filed a joinder. Ensun'ng a quick resolution 0f this
SUITE
95945-7356
8x
13 case in an appr0pn'ate neutml forum will limit litigation expensme as much as possible.
Dtlve.
CA
l4
nghémnh
Coliege
VOIIGV. 15
B. An Out-of-County Judge Will Further Burden This Court’s Resources
Slelrc
Grass
16 Trying this case in San Mateo with an ouI—of—county judge appointed by the Judicial Council
Colaniuono.
420
17 will also further burden this Court’s resources and stafi”. Even if an impartial judge is brought in to
18 try this matter, he or she will still rely on San Mateo’s taxed stafi and rmources. The Judicial
19 Council’s statistics reinforce the City’s contention that San Mateo’s resources are over—burdened —~
San Mateo has the state’s second largest caseload. (Gmnada’s Request for Judicial Notice ISO
21 Opp’n, Exh. A.) In fiscal year 2014-201 5, for example, the last year for which Judicial Council data v47.
22 is available, courts in California had an average of 3,150 dispositions per judicial equivalent
‘23 position. San Mateo had 4,720 — nearly 1,600 or 50% more dispositions per judicial equivalent
24 positon than the average California court. (Ibid) Appointing an out-of—county judge unfamiliar with
25 San Mateo’s local rules and procedures, and forcing court staff to specially set each and every
26 hean‘ng for this case and oversee procedural issues, will further burden the stafiand the limited
27 resources of this Comt, delay the present litigation, and increase litigation costs.
28
4
CITY OF HALF MOON BAY'S REPLY
IN SUPPORT OF MOTION FOR MANDATORY TRANSFER OF VENUE
1342214 _
Ill. THE CITY SEEKS TRANSFERTO AVENUE WITH THE CAPACITY TO
PROMPTLYAND EFFICIENTLY RESOLVE THIS MATTER
The City requests this Court transfer this case to a neutral venue with the capacity to
this Court. The City proposw Sacramento as a dcsirabIe venue for the following reasons. First,
Sacramento has the resources to resolve this action 0n a regularly scheduled calendar quickly and
eficiently. As indicated by the Judicial Council, Sacramento has a smaller caseload than San Mateo
and the average California court. In fiscal year 2014-201 5, for example, Sacramento had 2,844 court
dispositions per judicial equivalent position. That same year, San Mateo had 4,720 and the average
Califomia court had 3,] 50. Sacramento had roughly 1900 fewer dispositions per judicial equivalent
PC 11
position than San Mateo a- roughly 300 fewer than the average California court. (Ibid)
140
thtley.
12
SUIIE
Second, sitting in the state’s capital, Sacramento tries many cases testing the ICSpective
95945-7356
13
& Dlive.
authority and obligations of contesting government agencies. Benefiting fiom experience, V
CA
14
nghsmlih
Sacramento’s judges and court stafihave great expertise trying cases between public entities, which
College
Valley.
15
also will serve to expedite adjudication ofthis case.
Slena
16
Gloss
Lastly, Sacramento is a convenient forum for all partiw. Though no counsel for the four
Colantuono.
d20
17
parties maintains an ofiicc in Sacramento County, they are all located within reasonable distance,
18
fiom Grass Valley to Santa Cruz. This action will not require partiw to tmtify or otherwise attend
19
numerous court proceedings — it can be expected to be tn'ed on documents as it turns on the
20
consn‘uction 0f an integated contract and few witnesses remain fiom its 1976 negotiation.
21
Alternatively, the City has no objection to the opposing pam'es’ suggestion of Santa Clara
22
County as a neutral venue, so long as it, too, can resolve this case quickly and efficiently.
23
24
25
26
27
28
5
CITY OF HALF MOON BAY'S REPLY
IN SUPPORT OF MOTION FOR MANDATORY TRANSFER OF VENUE
1842214
IV. CONCLUSION
For all ofthe reasons discussed here and in the Motion papers, the City respectfillly requests
this Court transfer this case to a neutral venue with the capacity to efficiently resolve it —
Sacramento County or another neutral venue detennined by this Court.
PC 11 'QPUA-P-DQ 244496?“
I40
12
MICHAEL G. COLANTUONO
PAMELA K. GRAHAM
Whailey.
SUIIE
95945-7356
13
EDUARDO JANSEN
& Drlve.
Attorneys for Plaintiff
14
CITY OF HALF MOON BAY
nghsrnlfh
CA
College
Vo1ley,
15
Slelrc
Gross
16
Colan1uono.
420
l7
18
l9
20
21
22
23
24
25
26
27
28
6
CITY OF HALF MOON BAY’S REPLY
l'N SUPPORT OF MOTION FOR MANDATORY TRANSFER OF VENUE
1842214
PROOF OF SERVICE
City ofHangoon Bay v. Granada Community Sewices District, et a1.
I am employed in the County ofNevada, State of California. I am over the age of 18 and not
a party to the within action. My business addrws is 420 Sierra College Drive, Suite 140, Grass
Valley, California 95945-5091. On September 12, 2017, 1 served the document(s) described as
CITY 0F HALF MOON BAY’S REPLY 1N SUPPORT OF MOTION FOR MANDATORY
TRANSFER 0F VENUE 0n the interested parties in this action addressed as follows:
95946-7356
Based on a court order or an
13
8n
Drive,
agreement 0f the parties to accept service by e-mail or electronic transmission, by causing the
documents to be sent to the persons at the e—mail addresses listed 0n the service list on
CA l4
nghsmnh
September 12 2017 fiom e—mai] address: PGraham@chwlaw.us No electronic message 0r other
College
Volley.
15 indication that the transmission was unsuccessful was received within a reasonable time after the
transmission
Sierra
Gloss
16 I declare under penalty of peljufy under the laws ofthe State 0f California that the above is
Colaniuono,
true and correct.
420
17
>19
\V \
20 Ashley A. Lloyd
21
U /
22
23
24
26
27
28
.mp1».
PROOF 0F SERVICE
City ofHaIfMoon Bay v. Granada Community Services District, e! al.
MO
Whauey. 12
SUITE
95945-7356
Christine C. Fitzgerald Charles RA. Nelson
8t
Dllve.
13 Fingerald Law Ofices Bold, Polisner, Maddow, Nelson & Judson
345 Lorton Avenue, Suite 301 2125 Oak Grove Road, Suite 210
14
nghsmllh
CA
Burlingamc, CA 9401 0 Walnut Creek, _CA 94598
College
Telephone: (650) 348-5 195 Telephone: (925) 933—7777
Va1ley.
15
Facsimile: (650) 239—1207 Facsimile: (925) 933—7804
Slerra
Gross
l6 Email: fitzgeraldlaw@sbcglobal.net Email: cnelson@bpmnj .com
Colantuono. Attorneysfor Defendant Attorneysfor Real Party in Interest
420
17 Montara Water and Sanitary District Sewer Authority Mid—Coastline
18
19
Courtesy Copy via Email:
Anthony P. Condotti, City Attorney
20 City 0f HalfMoon Bay
Atchison, Barisone, Condotti & Kovacevich
21 333 Church Street
Santa Cruz, CA 95060
22
Telephone: (83 1) 423-8383
23
Facsimile: (83 1) 423—9401
Email: TCondotti@abc-Iaw.com
24 Attorneysfor Plainttfi"
City ofHalfMoon Bay
25
26
27
28
2
REPLY IN SUPPORT 0F MOTION FOR MANDATORY TRANSFER OF VENUE
l 84127.4
C“q~
LM
pa
CARL PA. NELSON (cnélsofiiagbpmni.cum) SEN]7%515;
EW
EL EQN MATLEU COUN
"x "w;
._
"
SEP 0 6 2017
SHARON M. NAGLE (snagicc(aszmni; com1) SBN YEW] ZEI— —3 A
LU
Bold, Polisner, Maddow, Nelson & Judson [0 us
,
_S ,
ECO”
43
A Professional Corporation
2125 Oak Grove Road, Suite 210
5
CLEPK 0F THE C Tb .
i i7“;
m-
O SUPERlOR COURT '-
Io
-
'7".
'
Q95
‘9. /
Wm“ UEPUTTY
Ch
/ _ CW _ 03m
Attorneys for Real Party In Interest Sewer Authority Mid—Coastside E1
\J
Juinder
J
697457
OO
VD
SUPERIOR COURT 0F CALIFORNIA ‘ IEE?EHEHELEllfilfllmflmfiéIllEH
C:
F“
bJ
CITY OF HALF
corporation,
' I
FOR THE COUNTY OF SAN MATEO
MOON BAY, a municipal )
)
Case N0. mm
PARTIAL JOINDER IN
Plamtlff,
) OPPOSITION T0 PLAINTIFF
mo
)
HALF MOON BAY’S MOTION
VS-
) FOR TRANSFER 0F VENUE
J)
) FILED BY DEFENDANT
GRANADA COMMUNITY SERVICES ) GRANADA COMMUNITY
SCANNED Ln DISTRICT and MONTARA WATER AND SERVICES DISTRICT
)
SANITARY DISTRICT, )
Ch
)
Complaint Filed July 11, 2017
Defendants- (Asmgned t0 Hon. Robert Foiles, D. 21 5
\J )
VD
SEWER AUTHORITY MlD-COASTSIDE )
Dept. 16 (Law & Mtn.)
)
CD
Real P my In Interest )
[Exempt from filing fees]
(Gov. Code. §6103)
)
hi
the Opposition to the Plaintiff‘s Motion for Transfer of Venue, to the gxtent that it saeks, in lieu
b0
of transfer, that this case be tried in this County by a disinterested judge assigned from a neutral
4k
county, or that it be sent to be sent t0 Contra Costa County rather than Sacramento County.
kil
(MM
NJ
00 (Mm
Carl P.A. Nelson, Attorneys for Real Party In' Interest
SEWER AUTHORITY MID-COASTSIDE
l PARTIAL JOINDER TN OPPOSITION
To Plaintiff‘s Motion to Change an'uc
PROOF OF SERVICE
I, the undersigned, hereby declare that I am over the age of eighteen years and not a party
ALAN to the within action. My business address i5 2125 Oak Grove Road, Suite 210, Walnut Creek,
California, 94598.
DISTRICT
12
Michael G. Colantuono/ Pamela K. Graham Attorneys for of Half Moon Bay
Plaintiff, City
Eduardo Jansen A
Tel: 530-432-7357 / Fax: 530-432-7356
13
Colantuono, Highsmith & Whatley, PC Email: MColantuono@chwlaw.us
14 420 Sierra Vollege Drive, Suite 140 Email: PGraham@chwlaw.us
Grass Valley, CA 95945-5091 Email: EJanscn@chwlaw.us
15
16
Jonathan Wittwer/ William Parkin Attorney for Defendant Granada Community
20
24
x By UNITED STATES MAIL, I enclosed the documents in a scaled envelope or package
addressed to the persons at the addresses listed above and placing thc envelope for collection and
25 mailing, following our ordinary business practices. I am readily familiar with this business’s
practice for collecting the processing correspondence for mailing. On the same day that
26 correspondence is placed for collection and mailing, it is deposited in the ordinary course of
business with the United States Postal Service, in a sealed envelope with postage fully prepaid.
27*
PROOF OF SERVICE
above. I am readily familiar with this business’s practice for collecting the processing
correspondence for overnight delivery. And, on the same day I placed the enveIOpe 0r package for
collection and overnight delivery a1 an office or a regularly utilized drop box of the overnight
delivery carrier.
BY CM/ECF ELECTRONIC SERVICE, I electronically filed the foregoing with the Clerk
0f Court using the CM/ECF system which will automatically send email notification of such
filing to the email addresses listed above.
\DOOQONUI-fiww—
V
X By ELECTRONIC TRANSMISSION I transmitted a PDF version of this document by
Electronic mail to the paws) idefidfied above.
I declare under penalty of perjury under the laws of the State of California that the
foregoing is true and correct, and that this declaration was executed on September 6, 2017, at
ABMWWMV‘Q
Shanfion Wurth
MNH—u—nu—nt—np—np—Iu—t—ov—I
HOOOO‘JO‘M-hUJNHO
22
23
24
25
26
27
28
2
PROOF OF SERVICE
DAVID SCHRICKER, #36534
FI LEE
FMATEO COUNTY
LAW
E.
OFFICE OF DAVID E. SCHRICKER EEEEBAN SEP 0 6 207
563 South Murphy Avenue
Sunnyvale,CA 94036 20!? {JCT -3
Telephone: (408) 517-9923
A [memo 13, s fiorCourt
CL'ER
Facsimile: (408) 900-8225
HCOUW
HE
"upsmoa cow;
dschficker@schrickerlaw.com O
oFsmrigfiav 311 8 92 7
CHRISTINE C. FITZGERALD #l3 531 17— cw oaugzDVT
OGOOQQLh-bmmfl
3mm
A PROFESSIONAL CORPORATION 697472
SANITARY DISTRICT;
Defendants, BY FAX
and
Cross-Complainant,
and
GRANADA—COMMUNITY SERVICES
DISTRICT; SEWER AUTHORITY MID—
\OOONJONMAUJNp—n
COASTSIDE,
Defendant and Cross-COmpJainant Montara Water and Sanitary District hereby joins in
5—-
O
Defendant and Cross—Complainant Granada Community Services District’s (“GCSD”) Opposition to
v—t '—‘
Plaintiff’s Motion to Transfer Venue and incorporaies by reference all factual evidence and legal
>—-
N
L»)
arguments put forth by GCSD in this matter.
»—-
DATEnglé g2 .
(Z 2017 FITZGERALD LAW OFFICES
1—-
g ,
A Professional Corporation
r—n
9'1
v_- C\
H
x]
. ._. ,4,
t_- DO
Attorneys for D (omplainant
Montara Water & Sanitary District
h—n
w
NO
N P—‘
NN
N UJ
N J2-
N U'I
N‘
Q
N *4
N 00
[X] (BY REGULAR MAIL) I caused a copy of said pleadings to be placed in a United States
Mail depository, in a sealed envelope with postage fully prepaid to the below listed
addresses:
I declare under penalty of perjury under the laws of the State of California that the
Dated: September 6, 17
00mm kmmm 09
COLLEEN c FIszERM D
Jonathan Wittwer,
William
SBN 058665
SBN 139718
P. Parkin,
EELED
Nicholas Whipps, SBN 306865
SAN MATEO coum’y
WITTWER PARKIN LLP 2817 0C1 -3 A 10: 32
147 S. River Street, Suite 221
Santa Cruz, CA
95060
Telephone: (83 1) 429-4055
Facsimile: (831) 429-4057
jonathan@wittwerparkin.com
\DOOQON‘JI-h
wparkin@wittwerparkin.com
nwhipps@wittwerparkin.com
1'70V316927
Attorneys for Cross Complainant
GRANADA COMMUNITY SERVICES Exemptfrom Filing Fees Pursuant t0
DISTRICT Government Code Section 61 03
10
SUPERIOR COURT OF THE STATE OF CALIFORNIA
11
IN AND FOR THE COUNTY OF SAN MATEO
12
13
14
CITY OF HALF
corporation,
MOON BAY, a municipal Case Nam
Unlimited Jurisdiction
17
GRANADA COMMUNITY SERVICES
18 MONTARA WATER AND
DISTRICT and
SANITATION DISTRICT,
19
Defendants,
20
23
24
SCANNED GRANADA COMMUNITY SERVICES
25 DISTRICT,
,
26 Cross-Complainant,
27
VS.
23
CITY OF HALF MOON BAY? a municipal
corporation,
N
Cross—Defendant,
\OOO‘QONUI-bw
PROOF OF SERVICE
11 I am over the age 0f 18, and not a party to this action. My business address is 147 S.
River Street, Suite 221 Santa Cruz,
,
CA 95060, which is located in Santa Cruz County.
12
13
On September 5, 2017, I caused the following document(s) entitled:
14
1. GRANADA COMMUNITY SERVICES DISTRICT’S ANSWER TO
15 COMPLAINT
16
2. GRANADA COMMUNITY SERVICES DISTRICT’S CROSS—
COMPLAINT
17
18 t0 be served on the party(ies) or its (their) attomey(s) of record in this action listed below by the
following means:
19
‘
20 BY MAIL. By placing each envelope (with postage affixed thereto) in the U.S. Mail
at the law offices 0f WITTWER PARKIN LLP, 147 S. River Street, Suite 221, Santa
21 X Cruz, California, addressed as shown below. I am familiar with this firm’s practice
for collection and processing 0f correspondence for mailing with the U.S. Postal
22 would be deposited
Service, and in the ordinary course 0f business, correspondence
with the U. S. Postal Service the same day it was placed for collection and
23
processing.
24
BY HAND-DELIVERY. By causing a true copy thereof, enclosed in a sealed
000-40
11
Michael G. Colantuono Christine C. Fitzgerald
Pamela K. Graham Fitzgerald Law Offices
12
Eduardo Jansen 345 Lorton Avenue, Suite 301
13 Colantuono, Highsmith & Whatley Burlingame, CA 94010
420 Sierra College Drive, Suite 140 fitzgeraldlaw@sbcglobal.net
14 Grass Valley, CA 95945-509]
MColantuono@chwlaw.us Carl Nelson
15
PGraham@chwlaw.us Bold, Polisner, Maddow, Nelson & Judson
18
19
I and declare under penalty 0f perjury under the laws 0fthe State ofCalifomia
certify
that the foregoing is hue and correct.
21
22
Dated: September 6, 201 7
23 Debbie Downing
24
26
27
28
EFiEIEJEEEEZE
Jonathan Wittwer, SBN 058665
William P. Parkin, SBN 139718 20H [JCT -3 A [0: 14L!
Defendants,
.GENNVOS
r1" “39;. ‘1‘
wha;
Cross—Complainant,
VS.
CITY OF HALF MOON BAY, a municipal
corporation,
Cross-Defendant,
LIIhUJN
\10
PROOF OF SERVICE
11 I am over the age of 18, and not a party t0 this action. My business address is 147 S.
River Street, Suite 221, Santa Cruz, CA 95060, which is located in Santa Cruz County.
12
13
On September 5, 2017, I caused the following document(s) entitled:
14 -
18
t0 be served 0n the party(ies) 0r its (their) attorney(s) ofrecord in this action listed below by the
following means:
19
20 BY MAIL. By placing each envelope (with postage affixed thereto) in the U.S. Mail
at the law offices of WITTWER PARKIN LLP, 147 S. River Street, Suite 221, Santa
21 X Cruz, California, addressed as shown below. I am familiar with this firm’s practice
for collectionand processing of correspondence for mailing with the U.S. Postal
22 Service, and in the ordinary course of business, correspondence would be deposited
with the U. S. Postal Service the same day it was placed for collection and
23
processing.
24
BY HAND-DELIVERY. By causing a true copy thereof, enclosed in a sealed
‘
28
BY FACSIMILE TRANSMISSION. By transmitting a true COpy thereof by.
facsimile transmission from facsimile number (83 l) 429-4057 to the interested
below.
I certify and declare‘mlder penalty ofpeljury under the laws ofthe State of California
that the foregoing is true and correct.
D ebbie Downing \
Jonathan Wittwer, SBN 058665
William P. Parkin, SBN 139718
Nicholas Whipps, SBN 306865 1m? DU 3 A \g uu FELED
emmeo comm
WITTWER PARKIN LLP THE comm
43mm
147 S. River Street, Suite 221 Stiggflcou SEP — 5 2017
‘th
Santa Cruz, CA 95060 pow, TY f
J‘i‘.’
cfemoflh 9 I
9'19" Court
Telephone: (831) 429—4055 BY
Facsimile: (83 1) 429-4057
jor1athan@wittwerparkin.com
wparkin@wittwerparkin.com
WWNONUI
nwhipps@wittwerparkin.com
13
14
CITY OF HALF
corporation,
MOON BAY, a municipal Case No.: WQ—
Unlimited Jurisdicrion
17
GRANADA COMMUNITY SERVICES IY FAX
18 DISTRICT and MONTARA WATER AND
SANITATION DISTRICT,
19
Defendants,
20
24
GRANADA COMMUNITY SERVICES
25 DISTRICT,
26 Cross-Complainant,
27
V5.
28
#DJ
Cross—Defendant,
\DOO‘QON
Defendant Granada Community Services District (“GCSD”) answers the Complaint for
10
Declaratory Relief (“Complaint”), filed on July ll, 2017, and acknowledged to be served on
11
August 3, 2017, by the City of HalfMoon Bay (“City”) as follows:
12
13
CONTROVERTING MATTERS
14
1. Answering paragraph 1, GCSD admits and affirmatively alleges that the City,
15
GCSD and Montara Water and Sanitary District (“MWSD”) formed the Sewer Authority Mid-
16
Coastside (the “Authority” or “SAM”) pursuant to a Joint Exercise of Powers Agreement
17
(“IPA”) in 1976 t0 construct, own and operate a regional wastewater collection, transmission,
18
treatment, and disposal system. Except as expressly admitted, GCSD denies, generally and
19
specifically, each and every allegation in paragraph 1.
20
2. Answering paragraphs 2 through 5, GCSD denies, generally and specifically, each
~
21
and every allegation stated therein.
22
3. Answering paragraph 6, the allegations stated therein are legal contentions for
23
which no response is required. Answering any purported allegations 0f fact, GCSD denies,
24
generally and specifically, each and every allegation therein.
25
4. Answering paragraphs 7 through 8, GCSD alleges that it lacks sufficient
26
information or belief as to the matters stated therein sufficient to answer the allegations and,
27
basing its denial on that ground, denies, generally and specifically, each and every allegation
28
5. Answering paragraph 9, GCSD denies, generally and specifically, each and every
allegation stated therein, including, but not limited to the allegation that it was known as the
Granada Sanitary “Agency” when the JPA was executed in 1976, and affirmatively alleges that
\DOOQOKUI¥UJNp—t
GCSD was known as the Granada Sanitary District when the JPA was executed in 1976, and
was reorganized effective October 1, 2014 into the Granada Community Services District, a
local agency operating under the Community Services District Law, Government Code section
61 000 et seq.
6. Answering paragraph 10, GCSD admits that SAM is a public entity created by the
JPA among the City, MWSD and GCSD. GCSD further admits SAM was created pursuant t0
the Joint Exercise ofPowers Act. Except as expressly admitted, GCSD denies, generally and
7. Answering paragraph 11, the allegations stated therein are legal contentions for
which no response is required. Answering any purported allegations 0f fact in paragraph 11,
GCSD denies, generally and specifically, each and every allegation stated therein.
8. Answering paragraph 12, GCSD admits that GCSD is situated in the County of
San Mateo. Except as expressly admitted, GCSD alleges that it lacks sufficient infomation or
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belief as to the allegations stated in paragraph 12 to answer the allegations and, basing its denial
on that ground, denies, generally and specifically, each and every allegation in paragraph 12.
”\lo‘hL/‘IbbJN—‘OKOW‘JCXLJIfiLDNHO
9. Answering paragraph 13, the allegations stated therein are legal contentions for
which no reSponse is required. Answering any purported allegations of fact in paragraph 13,
GCSD denies, generally and specifically, each and every allegation stated therein.
10. Answering paragraph 14, GCSD admits the City, MWSD and GCSD entered into
the JPA to create the Authority (SAM) on 0r about February 3, 1976. Except as expressly
admitted, GCSD denies, generally and specifically, each and every allegation in paragraph 14.
11. Answering paragraphs 15 through 18, GCSD denies, generally and Specifically,
each and every allegation stated therein, including, but not limited to, the argumentative
JPA, a Member Agency’s share of the Authority's General Budget (as Opposed t0 “general fund”
as that term is used in paragraph 19) for maintenance and repair is based on its share 0f flows to
Ln-hLQN
the Authority's plant (Complaint, Exhibit B, Section IV, para. (B)(4)), and that based on its
flows, the City is rBSponsiblc for slightly more than half of the Authority's General Budget
(again, as opposed to “general fund” as that term is used in paragraph 19). Except as expressly
admitted and affirmatively alleged, GCSD denies, generally and specifically, each and every
\OOOQON
13. Answering paragraph 20, GCSD denies, generally and Specifically, each and
10 every allegation stated therein, including, but not limited to, the unnumbered heading.
11 I4. Answering paragraph 21, the allegations in paragraph 21 seek to characterize the
12 contents of the JPA by argumentative emphasis and are legal contentions, for which no rCSponse
13 is required. The JPA speaks for itself. Answering any purponed allegations of fact in paragraph
14 21, GCSD denies, generally and specifically, each and every allegation.
15 15. Answering paragraph 22, the allegations in paragfaph 22 seek to characterize the
16 contents 0f the JPA by argumentative emphasis and are legal contentions, for which n0 response
17 is required. The JPA speaks for itself. Answering any purported allegations of fact in paragraph
19 16. Answering paragraph 23, the allegations stated therein are legal contentions for
20 which no response is required. Answering any purported allegations of fact in paragraph 23,
21 GCSD denies, generally and specifically, each and every allegation stated therein.
22 17. Answering paragraph 24, the allegations stated therein are legal contentions for
23 which no reSponse is required. Answering any purported allegations of fact in paragraph 24,
24 GCSD denies, generally and specifically, each and every allegation stated therein.
25 18. Answering paragraph 25, the allegations stated therein are legal contentions for
26 which no reSponse is required. Answering any purported allegations of fact in paragraph 25,
27 GCSD denies, generally and Specifically, each and every allegation stated therein.
28 I9. Answering paragraph 26, the allegations stated therein are legal contentions for
GCSD denies, generally and specifically, each and every allegation stated therein, including, but
20. Answering paragraph 27, the allegations stated therein are legal contentions for
which no response is required. Answering any purported allegations of fact in paragraph 27,
GCSD denies, generally and specifically, each and every allegation stated therein.
\ooosqampme
22. Answering paragraph 29, GCSD denies, generally and specifically, each and
23. Answering paragraph 30, GCSD denies, generally and specifically, each and
24. Answering paragraph 31, the allegations in paragraph 31 seek to characterize the
contents of public records, which speak for themselves. Answering any purported allegations of
fact in paragraph 31, GCSD denies, generally and specifically, each and every allegation.
25. Answering paragraph 32, the allegations in paragraph 32 seek to characterize the
contents 0f public records, which Speak for themselves. Answering any purported allegations of
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fact in paragraph 32, GCSD denies, generally and specifically, each and every allegation.
GCSD denies,
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27. Answering paragraphs 34 through 35, the allegations stated therein are legal
contentions for which n0 response is required. Answering any purported allegations 0f fact in
paragraph 34, GCSD denies, generally and specifically, each and every allegation stated therein.
AFFIRMATIVE DEFENSES
First Affirmative Defense
the Complaint, in its entirety, and any purported cause of action set forth therein, fails to state
ix)‘
3. that the Cour‘t award GCSD costs, attorneys’ fees, and related expenses; and
L»)
4. that the Court grant such other such relief as the Court dccmsjust and proper.
.5.
L11
DATED: September S, 2017 WITTWER PARKIN LLP
O\
\J
Bytfl’WWJ/m/O—x‘
00 Jonathan Wittwer
'
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HOROOONJOKJIJLUJN—
jonathan@wittwcrparkin.com
Wparkin@wittwerparkin.c0m
nwhipps@wittwerparkin.com
Defendants,
CW s: r,
:2.
6“ A ,
{5
VS.
Jhww
Cross-Dcfendant,
\DOONJONUI
12
13 INTRODUCTION
14 1. GCSD brings this cross—complaint seeking a declaration from this Court that the
18 operating in the County 0f San Mateo and serving the Mid-coastside wastewater generators in
19 the Half Moon Bay, E1 Granada and Montara areas. SAM operates one consolidated sewer, 0r
20 wastewater, system. GCSD, Montara Water and Sanitary District (“MWSD”), and the City
22 3. The Member Agencies created SAM in 1976 under the Joint Exercise 0f Powers
23 Act, Government Code § 6500 et seq. On February 3, 1976, the Member Agencies entered into
24 the first version 0f the Joint Exercise of Powers Agreement (“JPA” or “Agreement”) in the spirit
27 4. SAM sought and obtained federal and state funding t0 construct, own and operate
28 an interconnected wastewater system, comprised of the following components: the SAM Intertie
Pipeline System (“SAM IPS”) serving the Member Agencies; the SAM wastewater treatment
plant; and an associated SAM ocean outfall pipeline for the SAM wastewater treatment plant
#UJN
(collectively, “SAM Sewer System”). All Member Agencies are responsible for the wastewater
collection systems within their respective jurisdictions, and subsequently transmit this
wastewater t0 the SAM IPS collection and transmission system t0 be treated at the wastewater
treatment plant. Treated effluent is then discharged through the ocean outfall. As a single,
\DOO‘leLh
consolidated wastewater system, all Member Agencies utilize and benefit from each system
component. The Member Agencies created SAM with this primary concept and goal in mind.
5. In June 2017, after nearly four decades 0f continual operation, the City decided
10 that work on segments of the SAM IPS component 0f the SAM Sewer System had transformed
11 into a “new project,” although the SAM IPS has not changed in shape, size, or capacity. In a
12 reversal 0f its decades—long practice and in violation 0fthe binding terms 0fthe IPA, the City has
13 now taken the position that it is no longer responsible to fund work performed op the SAM IPS,
14 insisting that the other SAM Member Agencies must now shoulder the City’s portion of this
I
15 burden.
16 6. The City cemented its position to no longer fund SAM IPS work by refusing to
17 approve the 2017-2018 SAM General Budget as it was submitted to each Member Agency. This
18 created an unnecessary funding crisis. Contrary to the City’s current legal position, it remains
19 liable for and responsible to fund past, present and future work on the SAM [P8, a component of
20 the consolidated SAM Sewer System a1] Member Agencies successfully created, and have
21 collectively maintained for nearly four decades.
22 7. Although the City contends in its Complaint for Declaratory Relief that it seeks
23 this Court’s assistance in interpreting the IPA, in truth the City now seeks to re-write this
24 foundational document in an attempt to avoid its binding terms. In this context, GCSD brings
25 suit to seek an affirmative ruling from this Court that the City continues to share responsibility
26 for the SAM IPS, as all Member Agencies agreed in choosing a consolidated SAM Sewer
27 System with federal and state funding rather than utilizing the then—existing three separate
28 treatment facilities 0r siting the consolidated SAM treatment plant in E1 Granada or Montara.
forth herein.
and Safety Code section 6400, et. seq., and now existing as reorganized under the Community
OWOO‘QO
Services District Law, Government Code section 61000 et seq., with its principal office in E1
10. Cross—Defendant CITY OF HALF MOON BAY is a city located in the County of
I4 Act, Government Code §6500 er seq., and created by its Member Agencies now known as the
17 revised by Amendments 1 through 8. The principal office of the SEWER AUTHORITY MID-
18 COASTSDDE is located in the CITY OF HALF MOON BAY, within the County of San Mateo,
19 California.
20
24 Procedure § 1060 et seq. because GCSD seeks a declaration from this Court regarding the rights
25 and duties of the City and GCSD as Member Agencies to the IPA.
26 14. Venue for this action properly lies in the County of San Mateo Superior Court
27 because the City, GCSD, MWSD and SAM arc located in this County, and most, if not all acts
28 leading to this lawsuit occurred in this County.
16. GCSD, MWSD and the City formed SAM on February 3, 1976 by entering into
the JPA. The Member Agencies desired to form SAM to create “a single representative
organization” tasked with “developing a joint waste collection, transmission, treatment[,]
OWOONONUI
disposal and management plan . . . capable of acquiring, constructing, maintaining,
managing, operating and controlling facilities for the joint collection, transmission,
treatment and disposal 0f wastewater” within the HalfMoon Bay water basin. (IPA preamble
see, Complaint in Exhibit A). The JPA created a SAM Board of Directors. Each Member
11 Agency has two seats on the SAM Board of Directors, with the City having two votes per seat
12 and GCSD and MWSD each having one vote per seat.
13 17. At the time of SAM’s inception, the Member Agencies were faced with two
14 options t0 proceed with the development of a joint wastewater collection, treatment, and
16 wastewater treatment system” as shown in the February 3, 1976 IPA (Complaint Exhibit A).
19 form of “proposals for construction ofjoint collection systems, trunk and interceptor lines,
20 treatment plan[t]s, and disposal systems.” (Complaint Exhibit A, JPA § IV(A)). This planning
21 focused on “the full consolidation of sewage treatment facilities,” which the February 3, 1976
22 JPA and all relevant subsequent amendments refer to as the “Present Project.”
23 18. SAM constructed the Present Project in two phases. Phase I of the system
24 consisted 0f three components with “capacity rights, construction costs and operation and
25 maintenance expenses being shared as specified” until these costs were reallocated as
26 contemplated in Phase II. (Complaint Exhibit B, JPA § IV(B)(1)(a)). These three Phase I
27 components were (i) the SAM [P8, with initial construction costs “shared equally between
28 [MWSD] and [GCSD]”; (ii) an ocean outfall pipeline, shared one-half by the City, and onc-
reclamation pipeline, “solely assigned” to the City. (Complaint Exhibit B, JPA § IV(B)(1)(a)(i)—
(iii)). The SAM IPS consists 0f approximately 7.3 miles ofpipeline and four pump stations to
collect and transmit the flow 0f wastewatcr for treatment and diSposal.
\OOOQO‘x
19. Phase II 0f the Present Project consisted ofthc construction 0f the final
component 0f the SAM Sewer System, which contemplated one 0r more wastewater treatment
facilities. For Phase II, SAM considered constructing either a single plant to be located at the
10 site of the then-existing Half Moon Bay treatment plant, or three separate plants, located in Half
11 Moon Bay, Montara and El Granada (which plants were already in existence). The Member
12 Agencies chose to construct a single consolidated treatment plant, to which SAM connected the
13 then-existing, SAM-owned SAM IPS.
14 20. Phase II Reallocation. Under the terms of the IPA, as reflected in the July 2,
15 1979 JPA Amendment, and upon the SAM Board of Directors’ decision t0 construct a single,
16 consolidated wastewater treatment plant, the Member Agencies agreed to reallocate the costs
17 and expehses of the SAM Sewer System, thereby terminating the previous Phase I cosf
18 allocations. (Complaint Exhibit B, IPA The Member Agencies agreed to sharé the
§ IV(B)(4)).
19 total expenses of operation and maintenance of all the components 0f the SAM Sewer System
20 “based on flows into the single consolidated treatment plant facility,” and that “capacity rights
22 consistent with the treatment plant facility allocations.” (Complaint Exhibit B, IPA § IV(B)(4)).
25 The California Coastal Commission determined the treatment plant facility allocations t0
I(d)).
26 be 50% 30% (GCSD), and 20% (MWSD) based 0n the “service needs” 0f each Member
(City),
27 Agency, as reflected in the Local Coastal Program in effect in 1979 (“LCP Allocation”). Thus,
28
'
“Construction,” as referenced throughout this Cross-Complaint, includes repair and
replacement, as defined in the IPA.
the Phase II reallocation explicitly governs operations and maintenance, including construction
costs, for all of the completed SAM Sewer System components, including the SAM IFS, in the
General Budget. Similarly, in the event SAM incurs any liabilities, the Agreement sets Member
Agencies’ respective contributions to pay for these liabilities in proportion t0 each Member
Agency’s flows into the wastewater treatment plant. (Complaint Exhibit B, IPA § VIII(C)). In
\OOONJQUI-PWNH
reliance upon this reallocation of costs and expenses, GCSD and MWSD did not proceed with
constructing either a single consolidated wastewater treatment plant in E1 Granada or Montara, or
21. SAM’s stated goal under the terms of the IPA was, “[i]n the event the single
treatment plant concept is selected as the fourth component under Phase II, it is the intent 0fthe
Authority tofurther consolidate sewerfimctions within the service areas 0fthe three member
agencies, and t0 establish a uniform system ofsewer service charges, levied throughout the entire
jurisdiction ofthe Authority, with which t0 pay expenses 0f operations and maintenance.”
22. SAM owns and operates all components 0f the SAM Sewer System, including the
SAM IFS. SAM receives its revenue from JPA assessments paid by its member agencies.
Consistent with the terms of the Phase II reallocation, these assessments are calculated based 0n
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each Member Agency’s percentages of wastewater flows into the SAM wastewater treatment
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plant and the LCP Allocation. As of 2017, the flow allocations consisted 0f 52 percent (Half
23. In its Complaint, the City alleges that, according to the JPA, it is not responsible
for ongoing operations and maintenance of the SAM IPS because it does not “benefit” from the
SAM IPS. Contrary t0 the City’s allegations, the City directly and indirectly utilizes and benefits
from the SAM IPS. The SAM IPS collects and transmits City wastewater to the SAM
wastewatcr treatment plant, and the City receives wastewater flow “priority” at the SAM
wastewater treatment plant. The City receives higher wet weather wastewatcr flow capacity due
to capacity limitations 0f the SAM IPS, which limits the flow of wastewater from GCSD and
MWSD t0 the wastewater treatment facility during wet weather events, t0 the benefit 0f the City.
various components of the SAM Sewer System. Instead, the Phase II allocations for SAM Sewer
0n each Member Agency’s proportion 0f wastewater
mflOxm-DLAN
flows into the wastewater treatment plant and their LCP Allocations. The June 12, 2017 SAM
Staff Report discussing the 2017-201 8 General Budget correctly reasoned that “the total
expenses of operation and maintenance (O & M) 0f all of the components 0f the [SAM Sewer
\D System] (intertie pipeline and attendant pump facilities, ocean outfall, treatment plant) shall be
11 25. From the time of the Phase II reallocation according to the terms of the July 2,
12 1979 IPA Amendment, until the City’s June 2017 refusal t0 approve the 2017-2018 SAM
13 General Budget, the City has continually funded the operation and maintenance, including
14 construction, on the SAM IPS, in accordance with the reallocation set and agreed t0 by the
15 Member Agencies in the JPA. In doing so, the City has funded maintenance activities 0n the
16 SAM IPS, including the repair and replacement of pipe segments. All components 0f the SAM
17 Sewer System contain a mixture of older and newer parts, installed and maintained with the
18 effect and purpose 0f extending the service life of the SAM IPS and all other SAM Sewer
19 System components.
20 26. In past years, the City has repeatedly and consistently paid its reallocated share,
21 including payments for large-scale SAM IPS maintenance activities involving construction by
22 repair and replacement 0f pipeline segments. Most recently, the City, as a SAM Member
23 Agency, approved SAM [PS repair and replacement work in 2014 (repairing and replacing 1,750
24 feet ofthe SAM IFS), and in 201 6 (repairing and replacing 2,600 feet of the SAM IPS). The
25 2017—20i 8 SAM General Budget submitted to theMember Agencies included similar SAM IPS
26 repair and replacement work.
27 27. Under section V(A) of the IPA, the SAM General Budget is reviewed and
28 approved annually. Each year, SAM prepares a General Budget to fund, inter alia, the
LAAWN
General Budget t0 each SAM Member Agency for consideration and approval by each Member
Agency’s governing body. Once the governing body 0f each Member Agency has approved the
General Budget, the Budget is then returned to the SAM Board of Directors for final approval.
The failure of even one Member Agency t0 approve the annual General Budget exactly as it was
ROOO‘JQ
presented to all Member Agencies results in the complete failure of the annual General Budget,
causing the elimination of funding for SAM unless and until the Member Agencies finally
10 unanimously approve an annual General Budget.
11 28. Between the months of March and June 2017, SAM prepared and the Board 0f
12 Directors considered the 2017-201 8 General Budget. On June 12, 2017, the SAM Board of
13 Directors, including its Half Moon Bay representatives, approved submitting the 2017—201 8
l4 General Budget to SAM Member Agencies for approval. This budget includes $1.5 million in
15 funding for SAM IPS infrastructure repair and replacement, an incre‘ase from the Member
16 Agency-approved 201 6-2017 budget, which contained $746,000 in funding for Infrastructure
17 work, which also included SAM IPS-relatcd work. Since this increase was designed to repair
18 and replace certain preexisting portions 0f the SAM-owned-and-operated' SAM Sewer System, it
20 29. GCSD and MWSD approved the 2017-2018 General Budget as it was presented
21 t0 them. The City failed to do so, claiming the SAM IPS infrastructure work should not be
22 included in the General Budget, and, instead should be approved separately as a Project Budget.
23 30. The JPA provides for “Project Budgets” separate from the General Budget. The
24 Project Budget procedures provide for the “initiation” of any new project that two or more of the
25 Member Agencies pr0pose to fund. Under the plain reading 0fthe JPA and the past practice 0f
26 the Member Agencies, the Project Budget provisions apply t0 new improvements not previously
27 existing. Because all three SAM Sewer System components, including the SAM IPS, have been
28 in existence and continual use and have been functioning for nearly four decades, the Project
General Budget did not envision expanding the SAM IPS or increasing its capacity, it only
proposed to implement a plan to repair and replace certain segments of the SAM IPS, in line with
similarly funded past repairs and replacements. The Member Agencies have regularly and
\DOONJOU’I#UJI\Jt—~
properly funded work 0n the existing SAM Sewer System, including the SAM IPS, through the
General Budget.
31. GCSD now seeks an affirmative declaration from this Court that the City
continues to share r65ponsibility for its share of all costs and expenses related to the SAM IPS, as
reflected in the JPA, as well as an affirmative declaration that infrastructure work which does not
envision expanding the SAM IPS or increasing its capacity, but only proposes t0 implement a
plan t0 repair and replace certain segments of the SAM IPS pipeline does not require a Project
Budget.
33. SAM currently owns, operates, and maintains a fiJlly consolidated SAM Sewer
System, consisting of (1) the SAM IPS, (2) the SAM wastewater treatment facility, and (3) the SAM
NNNNNNNNNHIHHHHHH—nb—IH
ocean outfall pipeline. SAM has been responsible for the continual operation and maintenance of the
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34. The fully consolidated SAM Sewer System was constructed and/or incorporated in
two phases. PhaseI included the construction and/or incorporation of the SAM IPS and the SAM
ocean outfall. Phase [I constructed the SAM wastewater treatment plant.
35. Phase II reallocated the SAM Sewer System’s annual costs and expenses according t0
each Member Agency’s wastewater flows into the wastewater treatment plant and the LCP
Allocation. Reallocated costs and expenses as to the SAM IPS are thus fixed, and consist of
operations and maintenance, including construction, and the requirement to cover SAM liabilities.
36. The JPA intentionally designed the Phase II reallocation t0 be independent 0f each
Member Agency’s perceived or realized “benefit” received from any given SAM Sewer System
to constfuct the single fully consolidated SAM Sewer System with the SAM wastewatcr treatment
#UJN facility located in HalfMoon Bay, GCSD and MWSD detrimentally relied on the fact that the City
would continue t0 adhere t0 the Phase II reallocation cost formula. In any event, the City both
directly utilizes the SAM IPS to collect and transmit City wastewater to the SAM wastewater
treatment plant, and benefits from the SAM IPS in the form 0f the City’s ability to send a
disproportionately greater amount 0f wastewater t0 the wastewater treatment plant during wet
\Oooqoxm
weather events so as to reduce the need for the City to construct wet weather storage facilities.
37. Since the inception 0f the IPA, SAM has regularly and properly funded SAM IPS
work, including pipeline replacement, through the General Budget. The City has long, and
10
repeatedly, approved General Budgets that include SAM IPS infrastructure work, such as repair and
11
replacement.
12
38. On June 12, 2017, the SAM Board of Directors (including the SAM representatives
13
from the City) voted t0 submit the 2017-201 8 General Budget to each Member Agency for approval.
14
The 2017-201 8 General Budgetincluded approximately $1 .5 million in repair and replacement work
15
to the SAM IPS. GCSD and MWSD approved the 2017-2018 General Budget as it was submitted.
16
'
The City expressly declined to approve the 2017—2018 General Budget as it was submitted.
17
39. The SAM IPS infrastructure work was properly included in the 2017—2018 General
18
Budget. The IPA reflects the Member Agencies’ agreement to include all ongoing SAM IFS
19 operations and maintenance, including construction, in the General Budget. The IPA further
20 provides that these costs and expenses shall be allocated according to each Member Agency’s flows
21 into the wastewater treatment plant and the LCP Allocation.
22 40. The SAM IPS is an integral component of SAM’S fully consolidated SAM Sewer
23 System. Because the SAM IPS is owned, operated and maintained by SAM, and is an existing
24 improvement, infrastructure work 0n the SAM IPS does not fall under the “Project Budget”
25 provisions ofJPA section IV(B). The SAM IPS infrastructure work in the 2017-201 8 General
26 Budget would not alter, expand, or increase the service area or capacity of the SAM IPS as it
27 currently exists.
28
b) a. Fora judicial declaration that SAM owns, Operates a'nd maintains the SAM sewer
.m System, including the SAM IPS;
b. For a judicial declaration that the.JPA Amendment dated July 2, 1979 established
reallocated Costs an'd 'ex‘p‘éns‘és for a1] SAM Sewer System components, including the'SAM IPS,
o‘oumug
based on’ each Member Agency’s flows into the Wastewater treatment plant and the LCPAIIoca’tion;
c. 'For avjudicial declaration that the City.continues to share’ responsibility for Costs and
expenses related to the SAM IPS (including operations, maintenance, construction,-a’nd_ liabjilitiie's)
b
'and in pr‘opoi‘tionfto the City’s wastewater flows into the wastewater treatment plant and it_s LCP
Allocation;
d. For a jiudicial declaration that the City utilizes and benefits from the SAM IPS;
e. For a judicial declaration that the; SAM IPS. infrastructure work Was pro‘p'erfl'blaced
in .the 20 l 7-20 1 8' SAM General Budget;
f. For arjudicial' declaration that the SAM IPS infrastlucture work proposed i'n
the 2017-
201 8 SAM General Budget is not subject t0 the JPA Section V_(B) “Project Budget" provisionsr‘and
procedures;
g: For costs ofsuit “and attomeys’ fees .a’ndIelated expenses, pursuant to CalifOITliaCOde
By:
?athan Wittwer
ttomcys for Defendant and Cross—
r
.
Complainant
GRANADA .COMMUNITY‘SERVICES
DISTRICT
(Soxmflggigzzm
Crggsmgflogfslaim
(CITACION JUDICIAL-CONTHADEMAEEELEE)
NOTICE To cnoss-DEFENDANT:
(A wsoAL com.a-DEAMNDADO): uu SF
Numo comm,
_3 A
Wd-0U
P:
City of Half Moon Bay and Sewer Authority
THE gorge.“
AUG 2 "
Coastside, Real Party in Interest ()LERK 0F
R
You ARE BEING SUED BY cnoss-COMPLAINANT: sUFgRKOR :LARQIe
COUhTf 0F "
(Lo ESTA DEMANDANDO EL CONTRADEMANDANTE); @383“
BY”“"' 0%
_
You hHVe 30 CALENDAR DAYS after this summons and legal papers are served 5n you to file a wrinen response at thls court and have a
copy served on the cross-cornplainant. A letter or phone call wIII nut protect you. Your mitten response must be In proper legal form if you
want the court to hear your case. There may be a court iorrn that you can use for your response. You can find these court forms and more
Information at the California Couns Online Self-Heip Center (mw.courflnfa.ca.gav/sellhelp), yuur county law library. or the courthouse
nearest you. If you cannot pay the filing tee, ask the noun clerk for a fee waiver form. you do not fiIe your response on lime. you may
II'
SCANNED
lose the case by default, and your wages, money. and property may be taken without [unher warning from the court.
There are other legal requirements. You may want to call an attorney right away. u you do no! know an attorney, you may to call an mm
attorney referral service. If you cannot afford an attorney, you may he eligible for tree legal servicw from a nonprofit legal services
program. You can locate these nonprofit groups at the California Legal Services Web site (mwnlawhelpmlifomla.org). the California
Coutts Online Self-Help Center (vnvwsourfinfa.m.gov/selfhelp), or by contacting your local court or county bar associallon. NOTE: The
court has a stmutory lien for waived 19w and costs on any settlement or arbitration award uf $10,000 or more In a civil case. The court's
lien must be paid before the court will dismiss the case.
Tiene 30 DIAS DE CALENDAHIO despue's de que le entmguen 2318 citacldn y papeles Iegales para presentar una respuesta por esquro
en esla c0118 y hacer qua se entregue una copia a! comrademandante. Una wrta o una Iiamada relefénlca no Ia protegen. Su respuesfa
par escn'ro liens que estar en formats Iega! camera s! desea que pmwsen su case en Ia code. Es paslbfe qua haya un formularia qua
Listed pueda umrpara su respuesla. Puede encontrar estos formulan‘os de la carts y més lnformacién en el Centm da Ayuda da [as
Cortes de Califomls (vmwauconacagov), en Ia bibllaleca de {eyes de su condada o en Ia aorta que le quede més cerca. Si no puede
pagar (a cyata de pmntadén, pida at secremdo de Ia corte que Ie de' un formulan'o de exencidn dc pago de cuaras. SI na pracenra su
respuesm a tfempa, puede perder e1 caso por Incumplimiento y Ia carze [e podni qultar su sueldo, dlnero y Manes sin ma‘s advertencla.
Hay aims requisites Iegales. Es recomendabre qua llama a un abogado lnmedlamflrenre. Si no conoce a un abogado, puede flamer a un
servlclo de remisio‘n a ubogados. Si no puede pegs! a un abogado, es posible que cumpla con [as requisites para obfener serviclos legales
gmtuitos de un pmgmma de servicios Iegales sin {Ines de lucro. Puede encantrar estos grupos sin fines de lucro an el smo Web d2
California Legal Services, (mv.!awhelpcalifornia.org). en e! Centrv de Ayuda de I35 Canesde California (www.suconecagov), o
oniéndose en contacts con Ia code o e! coleglo da abogadas locales. AVISO: Por fey, ta corte Ilene derecho a reclamar [as cuatas y los
castes creates par Impaner un gravamen sabre cualquier recuperaclo'n d9 S! 0,000 6 més d9 valor reclbida mediante un acusrdo o una
conmién d9 arbiuaje en un casa de derecho civil. Tiene que pagar e! gtavamen de la cone antac de que Ia cone pueda desechar e! caso.
The name and address of the court i5: SHORT
.
NAME OF CASE (born Wm: (Nam do G150}:
-
7 C U 31 5 9 2 7
-
400 County center, Redwood city, CA 94063 1
The name, address. and telephone number of cross-complainant's anomcy, or cross-compiainant without an attorney. is:
(El nombre, Ia a7reccién y e! m‘nrnero d9 reléfono del abogado del conlrademandanre, o del contrademandante qua no tiene
abogfido. 95): Christine C. Fitzgerald, 345 Lorton Ave., Buriingam 4010' 650-348-5195
DATE;
(Fecha)
AUG '2 9 2017
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under: CCP 416.10
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H DAVID E. SCHRICKER, #36534 _
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SCANNED
A PROFESSIONAL CORPORATION
345 Lorton’ Av’enue, Suite 301
Burlingame, CA 94010
Telephone; (65 0) 348—5 1 95
Facsimile: (650) 239-1207
.fitzgeraldlaw@sbcglobaLnet
Exempt From Filing Fees Pursuant
O To Government Co‘de Section 6103
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corporation,
HALF MOON BAY, a municipal Case Nam
MONTARA WATER AND SANITARY_
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Plaintiff, DISTRICT’S AMENDMENT TO CROSS _
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GRANADA COMMUNITY SERVICES BY FAX
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MONTARA WATER AND SANTITARY DISTRICT‘S AMENDMENT T0 CROSS COMPLAINT
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SEWER AUTHORITY MID-COASTSIDE;
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Real Party in Interest.
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COMES NOWCIOSsComplajnant Montara Water and éanitary District, a public égen’éy, and
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hereby amends >its Cross Compiafnrfor Declaratbly Réh‘éfin the following particulars:
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1. At page 3, lin‘es 26-27, replace the ,words “(CITY=50.5% MWSD=29.5%
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2. At page 5, line 2, replace the word “DECLARATION” with the word
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3. At page 6,‘ line 3, replace the words “IPS Projects” with the wbrds “IPS Division WOrk”.
ON
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DATED: August 29, 2017 FITZGERALD LAW OFFICES
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MONTARA WATER AND SANTITARY DISTRICT s AMENDMENT To CROSS COMPLAINT
PROOF OF SERVICE
l declare thatl am employed in the County 0f San Mateo, California. I am over the age 0f
eighteen years and not a pany to this action. My business address is 345 Lorton Avenue, Suite
301, Burlingame, Califo’mia, 94010; On August 29, 17,1 served the within:
l'
]
(BY FEDERAL EXPRESS MAIL) l caused a copy of said pleading(s) to be sent
via Federal Express Mail to the parties listed below:
[X] (BY REGULAR MAIL) Caused a Copy of‘said pleadings to be'placed in a United States
I
Anthony P. Condotli
Atchison, Barisone &
COndotti, APC
P.O. Box 481
Santa Cruz, California 95061
Michael G. Colantuono
Pamela K. Graham
Eduardo Jansen
Colantuono, Highsmith &
Whatley, PC
420 Sierra College Drive, Suite 140
Grass Valley, California 95945 5091
I declare under penalty of perjury under the laws of the'State 0f Calimeia that the
l ANTHONY P. CONDOTTI, State Bar No. 149886 Exempt from Filing Fees
ACONDOTTI@ABC—LAW.COM
Government Code § 6103
/\
m 2 ATCHISON, BARISONE, CONDOTTI & KOVACEVICH
333 Church Street
€\ 3
Santa Cruz, California 95060
V Telephone: (83 1) 423-8383
4
Facsimile: (831) 423-9401
5
MICHAEL G. COLANTUONO, State Bar No. 143551
MColantuono@chwlaw.us
6
D PAMELA K. GRAHAM, State Bar No. 216309
LZU PGraham@chwiaw.us
7 :3}
EDUAgDhOlJANSEN, State Bar NO. 302757
g EJansen c w aw.us
“55”
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57% COLANTUONO, HIGHSMITH Neg? £433,
9
420 Sierra College Drive, Suite 140 MATEO COUN
8AM Ta
Grass Valley, California 95945-5091 i
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13
SUPERIOR COURT 0F THE STATE 0F CALIFORNIA
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FOR THE COUNTY 0F SAN MATEO
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CITY 0F HALF MOON BAY, a municipal CASE No.
5 corporation, Unlimited Jurisdiction
3 g
ES 17
;7—g$v—03092
27 UH
Proposed Order Received
739344
28
l UH!”llllllllllllllllll'l/llfl
section 394 filed by Plaintifi‘ City of Half Moon Bay (“City”) to transfer venue from the San Mateo
Superior Court to a neutral venue came on for hearing in Department I6, the Law and Motion
Department, on September 19, 2017(Having considered the Notice, Memorandum of Points and
Authorities in support thereof, the records and files in this action, and having heard argument by
D Pursuant to California Code of Civil Procedure section 394, Plaintifi’s Motion for
10
Mandatory Change ofVenue is GRANTED. This action is ORDERED transferred
PC 11
95946-7356
13
& Drive.
CA
l4
nghsmlth
College
D Pursuant to California Code of Civil Procedure section 394, Plainfifi’s Motion for
Volley. 15
Mandatory Change of Venue is GRANTED. This action is ORDERED transferred
Sleua
Gross
I6
Coiantuono.
t0 the County Superior Court.
420
l7
18
19 IT IS SO ORDERED.
20
21 DATED: By:
Superior Court Judge
22
23
24
25
26
27
28
and not a party to the within action. My business address is 790 E. Colorado Boulevard, Suite 850,
Pasadena, California 91 101.
On August 25, 2017,, I served the document(s) described as: [PROPOSED] ORDER
GRANTING PLAINTIFF’S MOTION FOR MANDATORY TRANSFER OF VENUE
(CCP § 394)on the interested parties in this action as follows:
By placing D the original E a true copy thereof enclosed in a sealed envelope addressed
as follows:
10
U BY MAIL: The envelope was mailed with pcstage thereon fully prepaid. I am readily
familiar with the firm’s practice 0f collection and processing correspondence for mailing.
PC
I]
Under thal practice it would be deposited with the U.S. postal service 011 thaI same day with
postage thereon fully prepaid at Pasadena, California in the ordinary course ofbusiness. I am
140
Whafley.
l2
aware that on motion of the patty served, service is presumed invalid if the postal cancellation
SUITE date or postage meter date is more than one day after service of deposit for mailing in
95945-509]
13
afidavit.
BL
Dtive.
I4
U BY OVERNIGHT DELIVERY: I placed such document(s) listed above in a sealed
CA
nghsmnh
envelope, for deposit in the desiglatcd box or other facility regularly maintained by FEDERAL
College
15
EXPRESS (FEDEx) and/or GOLDEN STATE DELIVERY (GSO) for overnight delivery, caused
Valley.
such envelope to be delivered to the ofice of the addressee(s) on the attached service list via
Sierra
l6 ?vemight delivery pursuant to C.C.P. §1013(c), with delivery fees fillly prepaid or provided
Gloss
or.
Colanluono.
420
17
U BY E-MAIL OR ELECTRONIC TRANSMISSION: Based on a court order or an
18
agreement of the parties to accept service by e-mail or electronic transmission, I caused the
documents t0 be sent to the persons at the e-mail addresses listed above. I did not receive
within a reasonable time afier the transmission, any electronic message or other indication
19
that the transmission was unsuccessful.
20
E PERSONAL SERVICE: I caused such envelope t0 be delivered by hand to the addressee(s).
21
22 I declare under penalty of perjury under the laws of the State of California that the above is
25 LQQMa/Pmamwb
ela aramillo
26
27
28
Jonathan Wittwer
WHTWER PARKIN LLP
147 S. River Street, Suite 221
Santa Cruz, CA 95060
Tel: 83 1429-4055
Fax: 83 1-429-4057
E: jonathan@wittwerparkin.com
1'0
David E. Schricker
LAW OFFICE 0F DAVID E. SCHRICKER
563 Murphy Avenue
'
PC
S.
11
140
Sunnyvale, CA 94086
Tel: 408-5 1 7-9923
Whailey.
12
SUITE
Fax: 408-900-8225
95945-5091
E: dschricker@schrickerlaw.com
13
& Drlve.
14
nghsmith CA
College
Counsel for Defen dant SewerAut/zoritv Mid-Coastside
Volley. 15
Carl Nelson
Sierra
16
Colonruono,
Gross
BOLD, POLISNER, MADDOW, NELSON & JUDSON
420
2125 Oak Grove Road, Suite 210
I7
Walnut Crack, CA 94598
Tel: 925-933-7777
Fax: 925-933-7804
E: cnelson@bpgmnj.com
19
20
21
22
23
24
25
26
27
28
ii
K ___
. .
SCANNED
COLANTUONO, HIGHSMITH & WHATLEY, PC
420 Sierra College Drive, Suite 140
M:
Grass Valley, California 95945-5091
DEE
Telephone: (530) 432~7357 g;
Facsimile: (530) 432—7356 >€ ,
PC 11
Attorneys for Plaintiff
MO
Whatley.
12
CITY 0F HALF MOON BAY
SUHE
95945-7356
13
SUPERIOR COURT 0F TEE STATE 0F CALIFORNIA
a Dtlve,
CA
14
FOR THE COUNTY 0F SAN MATEO
Highsmlm
College
Valley.
15 1?Cv316927
Sierra
Gross
16
CITY OF HALF MOON BAY, a municipal CASE NO. 11611103092.
Columuono,
corporation, Unlimited Jurisdiction
420
I7
Plaintiff, (Case assigned to Hon. Robert Foiles l Dept 21)
18
V_ 1. MOTION
PLAINTIFF’S NOTICE 0F
19
AND MOTION FOR MANDATORY
20
GRANADA COMMUNITY SERVICES TRANSFER 0F VENUE (CCP § 394);
DISTRICT and MONTARA WATER AND
21 SANITARY DISTRICT, 2. MEMORANDUM IN SUPPORT
22 Defendants. [Proposed Order filed concurrently herewith]
,x/fi
23
and Complaint Fued: July 11, 2017
24
km
SEWER AUTHORITY MJD-COASTSIDB, Hearing Date: September 19, 201 7
25 Time: 9:00 am.
I
Real Party In Interest. Dept; 16 (Law‘and Motion)
26
r———
117—CW —03092
27
MUTE
Motion
28
iviiimmuuwmmmuwnu
PLEASE TAKE NOTICE that 0n September l9, 2017, at 9:00 a.m., or as soon thereafter as
counsel can be heard in Depaxtnent I6, the Law and Motion Department of the above-referenced
Court Iooated at 400 County Center, Redwood City, CA 94063, Plaintifi‘ City of Half Moon Bay
(“City”) will and hereby does move this Court for an order transfem'ng this action to a neutral venue,
specifically to the Sacramento County Superior Court or such other neutral venue with the capacity
to quickly and efficiently resolve the present action as this Court may determine. The City brings
this Motion pursuant to California Code of Civil Procedure section 394, which provides for a
mandatory transfer of venue to a neutral county when requested by a plaintiff city who is suing
10 another city or public agency. Transfer of venue pursuant to sccfion 394(a) is mandatory —a
Pc 11 tansfcr of venue once made, must be granted (City ofAlameda v. Superior Court (1974) 42
140
Whatle'y.
12 Ca1.App.3d 312, 316; County ofSan Bernardino v. Superior Court (1994) 30 Cal.App.4th 378, 384-
SUII'E
95945-7366
81 13 389; Arntz Builders v. Superior Cour! (2004) I22 Ca1.App.4th 1195, 1203.)
Dllve.
CA
l4 This Motion is based upon this Notice; the attached Memorandum; the records and files in
Htghsmnh
College
Volley. 15 this action; and such arguments the City may present at 0r before the hearing.
Slelrc
Gross
16
oolontuono.
420
17 DATED: August 25, 2017 ATCHISON, BARISONE, CONDOTTI &
KOVACEVICH
l8
ANTHONY P. CONDOTTI
I9
22
MTCHAEL G. COLANTUONO
23 PAMELA K. GRAHAM
EDUARDO JANSEN
24 Attorneys for Plaintiff
CITY OF HALF MOON BAY
25
26
'27
28
B.
Replacing the Intertie Pursuant t0 the J'PA3
Proper Original Venue .............................................................................................. 4
3
95945-7356
13
& Drive.
CA
14
nghsmlm
College
Volley.
15
Sierra
Gloss
l6
Colomuono.
420
I7
18
l9
20
21
22
23
24
25
26
27
28
TABLE OF AUTHORITIES
1837103
TABLE OF AUTHORITIES
Page(s)
California Cases
PC
10
Golden Gate Bridge, Highway and Transportation Dist
125 Cal “App 4th 177..
11
I40
30 Ca1.App.4th 444 ...................................................................................................................... 2, 5
Whoilev.
12
SUITE
Westinghouse Electric Uorp. a. Superior Court (1 976)
959115-1356
CA 14 California Statutes
Highsmlth
College
Volley.
15
Code Civ. Proc.
Slerra
16
§ 4 ..................................................................................................................................................... 6
Grass
Coloniuono.
§ 394 ....................................................................................................................................... passim
420
17 § 394(a) ........................................................................................................................................ 1, 4
18 Gov. Code
§ 6500 ............................................................................................................................................... 3
19
20
2]
22
23
24
25
26
27
28
ii
TABLE OF AUTHORITIES
1837103
MEMORANDUM
l. INTRODUCTION
Plaintifi City of Half Moon Bay (“City”) moves to Hansfer this action t0 a neutral county
pursuant to Code of Civil Procedure section 394, which provides for a mandatory transfer of venue
in litigation between public entities. The rationale for mandatory transfer is clear — neutral venue
guards against any risk of local prejudices, and local judges are not forced “in the position of
appearing to choose between possibly conflicting loyalties or interests, especially where [the
judge’s] eiection to the bench depends upon the attitude of all the voters in the entire county.” (City
ofAIameda v. Superior Court (1974) 42 Cal.App.3d 3 12, 3 16 (“Alameda”).) “[T]here is n0 need for
10
a party t0 demonstrate an actual danger of prejudice; the statute ‘is designed to obviate the
PC ]1
appearance 0f prejudice as well as actual prejudice or bias.’” (County ofSan Bernardino v. Superior
MO
Whatley,
12
SUITE
Court (1994) 30 Cal.App.4th 378, 384 (“San Bernardino”).) “Under section 394, [I prejudice is
95945-7356
13
& Dllve.
presumed and the granting of the motion is mandatory. .. .” (Ohio Casually Ins. Group v. Superior
CA 14
HIghsrnlth
Court (1994) 30 Cal.App.4th 444, 452 (“Ohio Casualty”).)
College
Valley.
IS
Neutral venue is imperative here, because this lawsuit will decide the exigent and politically
Sierra
16
Gross
sensitive issue 0f which 0f the City, defendant Montara Water and Sanitary District (“Montara”), and
Colonluono.
420
I7
defendant Granada Community Services District (“Granada”) must fund the $4.4 million cost to
18
replace portions 0f the Intet’tic Pipe System (“Intertie”) —- a sewer force main and associated tanks,
19
pumps, and mechanical and electrical equipment that convey wastewater from Montara’s and
20
Granada’s sewer collection systems to a treatment plant operated by Sewer Authority Mid-Coastside
21
(“Authority”). (Petition (“Pet”), 1H] 1—2.) A11 parties are public agencies located in and serving San
Mateo County, and the Intertie’s funding dispute is at the forefront of local headlines. Swift and
23
impartial resolution of the parties’ funding obligations is needed to ensure the continued safe and
24
lawful operation 0f the agencies’ sewer systems and to protect public health, safety, and the
25
envirorunent.
26
The City files this Motion following a failed efi‘ort to negotiate a stipulated transfer of venue
27
with Montara, Granada, and the Authority. The City proposes the County of Sacramento as an
28
2
CITY OF HALF MOON BAY’S MOTION TO TRANSFER VENUE
1837103
appropriate venue, a venue that is convenient to all parties and is a convenient court With ample
expen’ence and resources for the efficient adjudication of writs, declaratory relief actions and related
claims as t0 the authority of government entities. The city is open to assignment t0 any court with
and Real Party in Interest Authority to resolve a dispute between the City, on the one hand, and
Montana and Granada, on the other. (Petition (“Pet”), 11 1.) The dispute between the City and
10 Defendants is to Whether the City must share in the cost 0f a $4.4 million capital project t0 replace
Pc 11 portions of the InterLie owned and operaled by the Authority, named as a real party here. (Ibidj the
140
Whaney. 12 Authority is named as a real parry, but has no position in the dispute and cannot achieve one as the
suns
95945-7356
& l3 dispute between its member agencies produces deadlock on its even-numbered board;
Olive,
CA 14
ngnsmnn
College
Volley.
15
A. Replacing the lntertie Pursuant to the jPA
Sleno
Gloss
16 The City, Montara, and Granada formed the Authority pursuant t0 a 1976 Joint Exercise of
Colantuono,
420
I7 Powers Agreement (“JPA”) under the Joint Exercise of Powers Law, Government Code Section 6500
18 et seq., to construct, own, and operate regional wastewater treatment facilities to meet the high cost
19 of upgrading those facilities t0 then—new federal standards. (Pet, fl 1.) The Authority’s treatment
20 facilities receive wastewater from separate sanitary sewer collection systems owned by the City,
21 Montarg and Granada — three communities on the northern San Mateo County coast. (Ibid.) The
22 JPA obliges the City, Montara, and Granada to bear the cost t0 fund capital improvements and
23 replacements 0f facilities that benefit them in proportion to their respective benefit, and protects each
24 member agency fi'om any duty to fund the deve10pment, upgrade, and replacement of facilities it
26 The Intertie was constructed shortly aficr the Authority was formed in 1976. (Pet, 1] 2.),
27 Granada and Montaré funded construction of the Intertie without the City’s financial participation.
28 (Ibid) The City was assigned n0 benefit from the Intertie, and no burden to fund it. (Ibid) The City-
3
CITY OF HALF MOON BAY‘S MOTION TO TRANSFER VENUE
1837103
owned collection system does not drain to the Intertie, and the Intertie has no capacity to
accommodate wastewater generated in the City’s sewer service area. (Ibid) (Part ofthe City is in the
Like all public works projects, the Intertie was constructed to be operated and maintained for
its useful life. (Pet, 1] 3.) As the JPA acknowledged, even with appropriate operation and
maintenance, the Intertie would eventually need t0 be replaced. (Ibid) That time has come.
Granada and Montara contend the City must pay 52% of the cost to replace the Intertie. (Pet,
11 5.) That contradicts the language and intent of the IPA. (Ibid) The City cannot contribute to a $4.4
million capital project it is not legally obligated to fund and from which its ratepayers derive no
10 benefit without contravem'ng its fiduciary duties to its own tax- and rate—payers. (Ibid)
PC II
140
Whollev.
12
B. Proper Original Venue
SUITE
95945-735b
8c
13 Plaintiff City is a general law city located in the County of San Mateo. (Pct, 1] 7.) Defendants
Drive,
nghsmifh
CA
14 Montara and Granada are independent special districts, and therefore public agencies, located in the
College
Valley.
15 County of San Mateo. (Id, 111i 8—9.) The Authority is also a public agency located in the County of
Slerra
Glass
16 San Mateo. (Id, 1[ 10.) The City filed this action in San Mateo County, where all four parties are
Colaniuono.
420
17 located and where venue was originally proper. (1d,, ‘fl IO; County ofSan Bernardino v. Superior
19
20
III. TRANSFER OFVENUE TO A NEUTRAL COUNTY IS MANDATORY
21 A. Change ofVenue under CCP 394 is Mandatory
22 Clause one of Code of Civil section 394 provides that “[a]n action or proceeding against [] a
23 local agency [] may be tried in the county [] in which the 1] local agency is situated, unless the action
25 county [] in which the city or local agency is not situated.” (Code Civ. Proc. § 394(a).) An unbroken
26 line of appellate cases interpret this clause to establish a mandatory duty to transfer to a neutral
27 county an action between public entities in the same county upon the request of any of them. (San
28 Bernardino, supra, 30 Cal.App.4th at pp. 384—389; Alameda, supra, 42 CaLApp.3d ai p. 3 16; Amtz
4
CITY 0F HALF MOON BAY’s MOTION To TRANSFER VENUE
1837103
Builders v. Superior Court (2004) 122 Cal.AppAth 1195, 1203 (“Arntz ").) “The use of the word
‘may’ as noted does not necessarily mean that a transfer is discretionary ...”. (Alameda, supra, 42
Ca1App.3d at p. 3 16.) Rather, that “transfer is required [] and the proceeding May be transferred to
any other neutral county”. (15121.)
Once a motion for change of venue is made, transfer must be granted. (San Bernardino,
supra, 30 Cal.App.4th at p. 389; Alameda, supra, 42 Ca1.App.3d at p. 3 I 6.) Because Code 0f Civil
Procedure section 394 is a mandatory removal statute, it “takes precedence over general venue
provisions” — requiring a transfer even where venue is otherwise proper. (Golden Gate Bridge,
Highway and Transportation Dist. v, Superior Court (2004) 125 Ca1.App.4th I77, 182.) “As the
10 statute is remedial in its purpose, it should receive a liberal construction which will promote rather
PC 11 than frustrate the policy behind the law.” (Westinghouse Electric Corp. v. Superior Court (1976) 17
MO
95945-7356
13
& Dilve.
l4
B. Prejudice is Presumed and Change ofVenue Must be Granted
nghsmtfh
CA
College
Volley.
15 The pmpose of section 394 is “t0 guard against local prejudices which sometimes exist
Siam]
Gross
16 and to secure to both parties to a suit a trial upon neutral ground.” (San Bernardino, supra, 30
Colanfuono,
420
l7 Ca1.App.4th at p. 386.) “[T]here is no need for a party to demonskate an actual danger ofprejudice
.”
18 (Ibid) Section 394 “is designed to obviate the appearance of prejudice as well as actual
19 prejudice or bias.” (Alameda, supra, 42 Cal.App.3d at p. 3 17.) “If either party is concerned about the
20 impartiality 0f the venue, transfer on application is mandatory and Clause One covers this
21 situation.” (San Bernardino, supra, 3O CaLApp.4th at p. 389.) “Under section 394, [] prejudice is
.”
22 presumed and the granting 0fthe motion is mandatory .. . (Ohio Casualty, supra, 30 Ca1.App.4th
23 aI p. 452.)
24 Here, the politically sensitive issue of which among the member agencies must pay the $4.4
25 million cost t0 replace portions of the [ntertie need not force a local judge “in the position 0f
appearing to choose between possibly conflicting loyalties or interests.” Originally filed in the
27 proper court, the City now has the mandatory right t0 and moves this Court t0 transfer the present
28 action to a neutral venue under Code of Civil Procedure section 394. The City further requests this
5
CITY OF HALF MOON BAY’S MOTION TO TRANSFER VENUE
1837103
case be transferred to Sacramento County because of the convenience of that forum to the parties
and because that Court has the resources and experience to efi‘lciently handle inter-govemmenta]
disputes of this type. The City is open to any other neutral venue that has the resources to efiiciently
C. The City Objects toTrying the Case in San Mateo Before an Out-of-
County judge
Code of Civil Procedure section 394 also authorizes this Court, in an action where a jury is
not of right or waived, to request that the California Judicial Council appoint ajudge fi‘om a neutral
10 county to try this case in San Mateo. The City opposes that alternative for four reasons.
PC
II First, the provisions 0f the Code of Civil Procedure arc to be construed to “promote justice”
140
thney. 12 (Code Civ. Proc. § 4; see also County ofSan Bernardino v Superior Court, supra, 30 Cal App 4th at
SUIYE
95946-7350
8x
13 pp. 386—3 87 [§ 394 should be liberally construed to promote its purposes].) In most actions not
Drive,
nghsmlth
CA 14 involving juries, there is little difference between transferring a case to a neutral county and having a
College
Volley.
15 neutral judge assigned by the Judicial Council. The present action, however, is unique. Because time
Slerra
Grass
16 is of the essence due to the public health, safety, and environmental issues involved with sewage
Cotamuono.
420
17 conveyance and treatment, the City urges this Court to hedge the uncertainty and likely delay
13 associated with the Judicial Council appointing a neutral judge to try this case in San Mateo. There is
19 a risk that finding and appointing a qualifiedjudge from a neutral county will delay the litigation,
20 and, once assigned, one of the parties will Hy to disqualify the assignment. Moreover, there is risk
21 that specially setting each and every step of this proceeding will delay this action.
22 Second, an appointed judge unfamiliar with San Mateo’s local rules and procedures and
23 having court staff specially set each step of this proceeding will be a burden on the stafi‘ and the
25 Third, Sacramento is a convenient forum for all parties. No counsel for the four parties
25 maintains an office in San Mateo County. Additionally, this action will not require parties to tesfify
28 the construction of an integrated contract and few witnesses remain from its 1976 negotiation.
6
CITY OF HALF MOON BAY’S MOTION TO TRANSFER VENUE
1837103
Located in reasonable distance of counsel and the parties, who range fiom Grass Valley to Santa
Cruz, Sacramento is an appropriate venue that tries many cases testing the respective authority and
Lastly, and most importantly, Sacramento has the resources t0 resolve this action on a
IV. CONCLUSION
The City requests this Court transfer this case t0 a neutral venue with the capacity to
efiiciently resolve it
—- Sacramento County or another neutral venue determined by this Court.
10
DATED: August 25, 2017 ATCHISON, BARISONE, CONDOTTI &
pc
11 KOVACEVICH
I40
a'Whaney.
12 ANTHONY P. CONDOTTI
SUIIE
95945-1356
I3
Drrve.
College
Valley,
15
Slam:
Grass
l6 MICHAEL G. COLANTUONO
Colantuono. PAMELA K. GRAHAM
420
17 EDUARDO JANSEN
Attorneys for Plaintiff
18 CITY 0F HALF MOON BAY
19
20
21
22
23
24
25
26
27
28
7
CITY OF HALF MOON BAY’S MOTION TO TRANSFER VENUE
1837103
PROOF OF SERVICE
I am employed in the County of Los Angeles, State of California. I am over the age of 18
and not a party within action.
to the My business address is 790 E. Colorado Boulevard, Suite 850,
Pasadena, California 91101.
By placing D the original E a true copy thereof enclosed in a sealed envelope addressed
as follows:
10
D BY MAIL: The envelope was mailed with postage thereon fully prepaid. I am readily
PC 11 familiar with the firm’s practice of collection and processing correspondence for mailing.
140
Under that practice it would be deposited with the U.S. postal service on that same day with
Wharley.
12 postage thereon fully prepaid at Pasadena, California in the ordinary course of business. [am
SUITE
aware that 0n motion of the party served, service is presumed invalid if the postal cancellation
95945-5091
13 date or postage meter date is more than one day after service of deposit for mailing in
8c
Dr1ve,
afidavit.
14
nghsmlth CA
D BY OVERNIGHT DELIVERY: I placed such document(s) listed above in a sealed
envelope, for deposit in the designated box or other facility regularly maintained by FEDERAL
College
vaney.
15
EXPRESS (FEDEX) and/or GOLDEN STATE DELIVERY (GSO) for overnight delivery, caused
Sierra
16 such envelope t0 be delivered to the ofiice of the addressee(s) on the attached service list via
Gross
Coluntuono.
overnight delivery pursuant to C.C.P. §1013(c), with delivery fees fully prepaid 0r provided
420
17 for.
22
I declare under penalty of perjury under the laws 0f the State 0f California that the above is
23 true and correct.
24
Executed on August 25, 2017, at Pasadena, California.
25
\thwmflfl
'
Pamcl Jammiuo
27
28
Jonathan Wittwer
WITTWER PARKIN LLP
147 S. River Street, Suite 221
Santa Cruz, CA 95060
Tel: 83 l 429—405 S
Fax: 83 I 429-4057
E: jonathan@wittwerparkin.com
David E. Schn'cker
10
LAW OFFICE 0F DAVID E. SCHRICKER
PC
563 S. Murphy Avenue
11
Sunnyvale, CA 94086
140
Te]: 408-517—9923
wnafley. l2
SUITE
Fax: 408—900—8225
959456091
E: dschricker@schrickerlaw.com
8: l3
Drlve.
14
nghsmlth CA
College
Counsel for Defendant SewerAuthoritv Mid-Coastsfide
Volley.
15
Carl Nelson
Slerro
16
Glass
BOLD, POLISNER, MADDOW, NELSON & JUDSON
2125 Oak Grove Road, Suite 21 0
Coluntuono.
420
17
Walnut Creek, CA 94598
Tel: 925-933—7777
18
Fax: 925-933-7804
E: cnelson@bpgmnj.com
19
20
2]
22
23
24
25
26
27
28
ii
.._s
\DWQO'NKJ‘ILLAM
BY FAX
OOQQMAWNP—‘OWOONJONL/‘IhWN—‘O
Defendants,
17—CIV-03092
COMP
an d '
Cross Complaint
Cross-Complainant,
and
OMHONMALHNv—a
COMES NOW Cross Complainant Montara Water and Sanitary District, a public agency, and
alleges as follows:
GENERAL ALLEGATIONS
of 1923, also exercising the powers of a county water district pursuant to Health and Safety Code
Section 65 12.7, and now is existing and authorized as a Water and Sanitary District, with is
relevant herein, was a local agency duly organized under the Sanitary Dism’ct Law of 1923, and now
OOQOxm-bWNHONOOOQQM-bm.N—'O
is existing and authorized under the Community Services District Law, with its principal place of
3. Cross Defendant CITY OF HALF MOON BAY (“CITY”), is a general law city
organized under the Constitution and the laws of the State ofCalifomia and located in the County of
San Mateo.
at all iimes relevant herein, a joint powers agency duly organized under the February 3, 1976
2
MONTARA WATER AND SANTITARY DISTRICT’S CROSS COMPLAINT l7 CIV 03092
hereinafter called "the JEPA," pixrsuant to the Joint Exercise of Powers Law, Government Code
section 6500- et seq. SAM'S Member Agencies are the CITY, GCSD and MWSD. SAM is a public
entity separate from its member agencies and located in San Mateo County and has the power to sue
\OWSJQU’IALoJNa—n
and to be sued in its own name pursuant to the IPA and Government Code Section 6507.
5. SAM owns and operates a secondary wastewater treatment and disposal system which is
comprised of a treatment plant, an ocean outfall pipeline and a collection system that collects
sewage fi'om satellite collection systems serving the combined needs of the CITY, GCSD and
MWSD (“System”).
6. Upon formation of SAM in 1976, the System contained four (4) components, which
were built in two (2) Phases. The collection system was the first component ofPhascI and was built
in 1979. Known as the Intertie Pipeline System (“[PS”), it consists of approximately eight (8) miles
of force mains and gravity interceptors and pump stations that convey raw sewage fiom all Member
Agencies to SAM’s treatment plant. The IPS was initially constructed to connect the MWSD and
GCSD systems to a new ocean outfall located adjacent to the CITY’S then inoperable outfall line.
The cost of the initial installation of the [PS was shared equally between MWSD and GCSD, and the
NNNNNNNNNHI—lv—dh—ab—Ip—np—sp—IHH
cost 0f the new ocean outfall pipeline was shared between all three Member Agencies, to wit: ‘/2
OOQQUIkNNHOWOO‘JO‘Lh-AUJNHO
treatment plant facility at the site of the CITY‘S then existing treatment plant, the goal of which was
to further consolidate the sewer functions of the Member Agencies. The plant was designed to treat
the combined flows from the individual collection systems 0f the Member Agencies, with the
capacity rights and construction costs that were previously allocated in Phase 1 re—allocared in
proportion to each Member Agency’s service needs 0f the WWTP. (CITY=50.5% MWSD=29.5%
GCSD=20%).
maintaining SAM’s System pomponents were and are allocated based on each Member Agency’s
flows to the treatment plant. These costs are part of the “Operations and Maintenance” expenditures
of SAM’s Genera] Budget for which all Member Agencies contribute in accordance with their
WWQQM$WNH
respective allocations and each fiscal year, SAM adopts a General Budget afier approval by each
Member Agency.‘ The IPA also requires the adoption of separate Project Budgets for specific
projects afier approval by each Member Agency. The Project Budget expenditures arc not bound to
be shared in a manner based on each Member Agency’s flows to the treatment plant.
9. Over the years, numerous répairs, rehabilitation and replacement of segments ofthe
pipeline and other lPS attendant facilities has consistently been interpreted as “maintenance" and
paid from the General Budget. The CITY has repeatedly contributed the cost of past operations and
maintenance of the IPS. The most recent example is fi'om the 2015-16 Genera] Budget where SAM
approved costs t0 rehabilitate the IPS pipeline by abandoning a failing segment of pipe and
installing a new section alongside it, as well as replacing existing air valves along another segment.
NNNNNNNNNu—IHr—II—ny—au—JH—n—Ih—I
10. All Member Agencies utilize and benefit fi'om the IPS, including the CITY. For
WQaM-fiWNHoomqam-fiWNF—‘o
example, the northern ponion of the CITY is served by the IPS by and through GCSD’s collection
system, which boundaries overlap with the CITY’S. "Rocket Farm's" and “Nurserymen’s
Exchange”, also located in the CITY, have direct connections to the IPS, either fi'om the CITY’S
collection system or directly to the intertie within CITY'S service area. The CITY also receives
indirect use of the IPS when, in wet weather, the CITY‘S discharge exceeds its collection and
transmission capacity and MWSD's & GCSD‘s flows are stored in the IPS pipeline so the CITY’S
I
The IPA further provides that liabilities, debts and obligations incurred by SAM be shared
between the Member Agencies in proponion to their allocation shares in the System.
4
MONTARA WATER AND SANTITARY DlSTRlCT’S CROSS COMPLAINT l7 CIV 03092
flow can be conveyed to the treatment plant.
11.
-The present dispute arises fiom the CITY’S refiJsal to approve SAM’s 2017-18 General
Budget which includfi expenditures for replacement 0f certain portions of the IPS pipeline and
OOOQQU'IAUJNt—g
repairs to the IPS attendant pumping facilities (“IPS Division Work”), which the CITY contends it is
not required to fund because it does not use or benefit fiom, or have capacity rights in the IPS and,
12. MWSD approved SAM’s 2017-18 General Budget and contends that the IPS Division
Work constitutes pmper operation and maintenance expenditures.
13. There is an urgent need to repair and replace segments of the IPS and other attendant
pumping facilities and MWSD desires and is entitled to ajudicial declaration that the IPS Division
Work constitutes proper operation and maintenance expenditures under the General Budget.
14. An actual and present controversy has arisen and now exists between MWSD on the one
hand, and the CITY 0n the other. MWSD contends that the IPA obligates the CITY to pay its
allocated share of the cost of the IPS Division Work as a General Budget expenditure.
15. Moreover, MWSD seeks declaration that CITY is responsible to connibute its allocated
NNNNNNNNN———nu—-HHHHHH
WHQMhWNflocm~JQM$WNHO
a. For ajudicial declaration that the IPS Division Work is part of the operations and
maintenance of SAM’s facilities and required to be paid from the General Budget.
Budget and contribute its allocated share based on flows to the WWTP to pay for the
IPS Projects as part ofthe operation and maintenance of SAM’s facilities;
For a judicial declaration that the IPA requires that the IPS Division Work does not
\OOOQQU'akaNu—n
For ajudicial declaration that IPS Division Work does not constitute a “project”
For a judicial declaration that IPA does not authorize the City to withhold its
approval of the IPS Division Work or to withdraw from said projects to avoid further
financial responsibility.
For a judicial declaration that the CITY is not authorized to withhold its approval 0f
the General Budget for fiJture repair, rehabilitation and replacement work related to
the IPS.
For a judicial declaration that the System, and its components, are owned by SAM
and that the CITY is precluded fi'om withholding its approval of the General Budget
NNNNNNNNNn—nr—IWp—ap—au—on—ar—IHH
for all liabilities, debts and/or obligations arising fiom the System and its
components.
W‘JON‘J'I-bUJN—‘OVOW‘JQMAUJNHO
For ajudicia] declaration that the CITY utilizes and/or benefits fiom the IPS.
For a judicial declaration that the JPA requires the CITY to be financially responsible
proportionate to its allocated share for all liabilities, debts and/or obligations related
to SAM’s System.
For costs of suit and attorneys fees pursuant to Code of Civil Procedure Section
1021.5.
For such other and further relief as the Court deems proper.
6
MONTARA WATER AND SANTITARY DISTRICT'S CROSS COMPLAINT 17 CIV 03092
DATED: August 24, 2017
'
oxoooqmmgmw._.
Attorneys for Cross Comp!
NNNNNNMNNHHb—IHHHHHfiH
OO‘JQM-h-WNHOWWMQM-PUJNH
PR 0F 0F 913R ICE
I declare that I am employed in the County of San Mateo, California. I am over the age of
eighteen years and not a party to this action. My business address is 345 Lorton Avenue, Suite
301, Burlingame, California, 94010. On August 24, I7, I sewed the within:
[X] (BY REGULAR MAIL) caused a copy of said pleadings to be placed in a United States
I
'
Mail depository, in a sealed envelope with postage fully prepaid to the below listed
addresses:
Anthony P. Condotti
Atchison, Barisone &
Condotti, APC
P.O. Box 481
Santa Cruz, Califomia 95061
Michael G. Colantuono
Pamela K. Graham
Eduardo Jansen
Colantuono, Highsmith Wlmtley, PC&
420 Sierra College Drive, Suite I40
Grass Valley, California 95945—5091
I declare under penalty of perjury under the laws of the State of California that the
0 o Q. "firm @fikckpgg
COLLEEN c. F1TZ¢ER
‘1
P"
Sunnyvale, CA
94086 00
ERK 0F THE 0
Telephone: (408) 517—9923 SCULPE 0R 050 RT 05A
Facsimile: (408) 900-8225
dschrickcréflschrickerlaw.c0m
COUN .j, £qu .
EE
SCANNED OWCOx-IQU'I-DUJNy—a
1 7C V 31 6 92 '2!
pg;
SEWER AUTHORITY MID-COASTSIDE, ll:
1‘.
"I1i M 1m N
I :I 1
’1
w
Isl HI“
I
v'
COMES NOW Defendant Montara Water and Sanitary District, a public agency (hereinafter
"Defendant” 0r “MWSD”) and answers the City OFHalfMoon Bay’s (“PlaintifP’ 0r “City”)
Defendant alleges that it has no infomation or belief on these matters sufficient to answer the
allegations and, basing its denial on that ground, denies generally and Specifically, all and singular,
\OOO~JO\M#wN-—n
2. Answering the allegations ofParagraphs 1, 2, 3, 4, 5, 6, 10, 14, 15, 17, l9, 20, 21, 22,
23, 24, 25, 26, 27, 29, the Answering Defendant admits the following portions and denies generally
and specifically, all and singular, each and every remaining portion: that Real Party in Interest,
SEWER AUTHORITY MID-COASTSIDE (“SAM”), is and was, at all times relevant herein, a joint
powers agency duly organized by SAM's member agencies, i.e., Plaintiff, MWSD and Defendant
Granada Community Services District (“Parties”), under the February 3. 1976 Agreement Creating
pursuant to the Joint Exercise of Powers Law, Government Code sections 6500. el. seq.; and that the
JEPA defines the rights and obligations of the Parties as well as identifies the Intertie pipeline that is
OO-QGLIIAUJNHOWOOQQthLHNb-‘O
MWSD is and was, at all times relevant herein, a local agency duly organized under the Sanitary
District Law of 1923, also exercising the powers of a county water district pursuant to Health and
Safety Code Section 6512.7, and now is existing and authorized as a Water and Sanitary District,
4. Answering the allegations ofParagraphs 13, l6, 34, 3S ofthe Complaint, the
answering Defendant denies generally and specifically, all and singular, each and every allegation
contained therein.
5. Answering the allegations ofParagraphs 18, 29, 30, 3 1, 32, 33, the Answering
2
MONTARA WATER AND SANTITARY DISTRICT'S ANSWER TO COMPLAINT l7 CIV 03092
Defendant admits all portions that are a matter of public record and denies generally and
specifically, ail and singular, each and every remaining portion contained therein.
Paragraphs 1
H 6 above as though fully set forth herein.
OWOOVQLh-RWNu—n
In addition, without admitting any allegations contgined in the Complaint, Defendant asserts
Defendant hereby incorporates each and every allegation contained in its Cross-Complaint in
The Complaint is barred under the equitable doctrine of unclean hands and other applicable
NNNNNNNNNu—np—au—np—Ar—AHt—Ip—uu—np—o
equitable doctrines.
OO‘JQMhWNHOOOOQQM#WN#
The Complaint is barred because the action is premature, is not ripe and no actual controversy
Plaintiff is not entitled to the relief requested on the ground. that it would compel Defendant to
OOOQQWQUJNn—o
exercise its discretionary and/or legislative power in a particular manner.
The Complaint fails to join as parties, persons or entities who have or may have substantial
vested rights which may be impaired or lost entirely by virtue of this action and who, accordingly,
are indispensible parties within the meaning ofCode of Civil Procedure §389.
Plaintiff is required to arbitrate any dispute which is the subject matter of the Complaint.
NNNNNNNNNp—nn—HHu—au—‘r—AHHn—n
FOURTEENTH AFFIRMATIVE DEFENSE
Defendant reserves the right to amend this Answer to assert additional affirmative defenses
and to supplement, alter or change the Answer and defenses upon revelation of more definitive facts,
OO‘JO\M&WN_O\OOO\JO\M#WNHO
1. That Plaintiff’s Complaint for Declaratory Relief be dismissed with prejudice and
4
MONTARA WATER AND SANTITARY DISTRICT'S ANSWER TO COMPLAINT l7 CIV 03092
4. For Defendant’s cost 0f shit herein, including reasonable litigation expenses, and
5. For such other and further relief as the Court shall findjust and proper.
DATED: AugLst 24 ,
2017 FITZGERALD LAW OFFICES
A Professional Corporation
\OOO‘dmm-D-DJNH
flkw‘LLTIL/DL
E/Christine C. Fitzgerald
Attorneys for Defendantfl
'—'
DJ
«b
U"!
O\
‘xl
00
KO
'—-
UJ
$-
Ui
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-~J
00
E
I declare that I am employed in the County 0f San Mateo, Califomia. I am over the age 0f
eighteen years and not a party to this action. My business address is 345 Lorton Avenue. Suite
[
‘]
(BY FACSIMILE) I caused a copy of said pleading(s) to be sent via facsimile
transmission to the interested parties at:
[
'J
(BY FEDERAL EXPRESS MAIL) caused I a copy of said pleading(s) to be sent
[X] (BY REGULAR MAIL) I caused a copy of said pleadings to be placed in a United States
Mail depository, in a sealed envelope with postage fully prepaid to the below listed
addresses:
Anthony P. Condotti
Atchison, Barisone Condotti, & APC
P.O. Box 481
Santa Cruz, California 95061
Michael G. Colantuono
Pamela K. Graham
Eduardo Jansen
Colantuono, Highsmith Whatlcy, PC &
420 Sierra College Drive, Suite 140
Grass Valley, California 95945-5091
I declare under penalty of perjmy under the laws of the State of California that the
4r
('
Ammmomm; Plaintiff CITY 0F HALF Mb’o‘fi BAY
SUPERIOR COURT OF CALIFORNIA, COUNTY OF SAN MRTEO tefb
//4943
muncmpaesm ~
.93;
PLAINI'IFFIPEI'mONER: .
I u“;
-3_:
DEFENDANT/RESPONDENT:
GRANADA COMMUNITY SERVICES DISTRICT, et a1. ’EVCv318927
TO {insert name
NOTICE AND ACKNOWLEDGMENT OF RECEIPT—CIVIL
NOTICE
.The summons and other documents Identified below are being served pursuant to section 415.30 0f1he CalIfomla Code of 0M!
Procedure. Your failure to complete this form and return it within 20 days from lhe dale of mailing shown below may subJect you
(or the party on whosa be’hatf you are belng served) to liability for the payment of any expenses lnwrred In serving a summons
on you in any other manner perrnltted by law.
lfyou are being served on behalf of a corporation, an unincorporated association (induding a partnership). or other entity. lhls
form must be signed by you in the name 0f such entity or by a person authorized to receive service of process on behalf ofsuch
entity. In all other cases. this form must be signed by you personally Or by a person authorized by you to acknowiedge recelpi of
summons. lf you retu‘m this form to tha sender. service of a summons Is deemed complete on the day you sign the
eplmowledgment of receip1 below.
‘
PAMELA
[TYPE
K.
DR PRINTNAME]
smmm b kalbm
(SIGNATUREOF SWR—MUSTNDTBEAPMTYW‘D‘DSGASE)
ACKNOWLEDGMENT OF RECEIPT
17— CIV- 03092
Thls acknowiedges receipt of (to be completed by sender before mailing): NAB
Nance & Acknowledgment
1. A copy of the summons and of [he complalnt. o! Receipt o!
651839
2. Other: (specify):
(To be completed
WWW
by recipient):
Date this form is signed; 07' fl. r//7
pad r'
X E. §ahm2 ker‘ p
("TYPE OR PRINT YOUR NAMEAND HNJEOF ENTITY. [F ANY. (SIGNATERE 0F PERSON ACMOWLEDOINB REBEFT.W|'I'H TITLE 1F
0N WHOSE BEHALF THIS FORM IS SIGNED) ACKNOWLEDGMENT IS MOE 0N BEHALF O-F ANO'IHER PERSON DR ENTITY)
Page 1 n!’ 1
Wm WW '°‘ “W‘M U" NOTICE AND ACKNOWLEDGMENT OF RECEIPT — CIVIL WWW" Procefiuro
JMIdad Courdlof Cufllfcmio
W15 [Rat January I. zoos] 0%“
Ffis
5541530. 417.10
I PROOF OF SERVICE
2 I am employed in the County of Los Angeles, State of California. I am over the age of 18
and not a party to the within action. My business address is 790 E. Colorado Boulevard, Suite 850,
3 Pasadena, California 91101.
8
SEE PROOF 0F SERVICE LIST
9
'0
E BY MAIL: The envelope was mailed with postage thereon fillly prepaid. I am readily
familiar with the firm’s practice of collection and processing correspondence for mailing.
2 n Under that practice it would be deposited with the U.S. postal service on that same day with
postage thereon fully prepaid at Pasadena, California in the ordinary course of business. Iam
3
>1
g Z g aware that on motion of the party served, service is presumed invalid ifthe postal cancellation
12
g g g date or postage meter date is more than one day after service of deposit for mailing in
3 "j
g 13
affidavit.
d w o
5:;
5
: 14
U BY OVERNIGHT DELIVERY: I placed such document(s) listed above in a sealed
o envelope, for deposit in the designated box or other facility regularly maintained by FEDERAL
2 §
g:
g
3'
15
EXPRESS (FEDEX) andfor GOLDEN STATE DELIVERY (GSO) for overnight delivery, caused
“E 0 such envelope to be delivered to the oflice of the addresscc(s) on the attached service list via
g
overnight delivery pursuant to C.C.P. §1013(c), with delivery fees fully prepaid or provided
g g 3 16
for.
g g g I
I
Q I7
:2)
U BY E-MAIL OR ELECTRONIC TRANSMISSION: Based on a coun order or an
18
agreement of the parties to accept service by c—mail or electronic transmission, I caused the
documents to be sent to the persozns at the e-mail addresses listed above. I did not receive,
19
within a reasonable time after the transmission, any electronic message or other indication
that the transmission was unsuccessful.
20
D PERSONAL SERVICE: I caused such envelope to be delivered by hand to the addressee(s).
21
22 I declare under penalty of perjury under the laws of the State of California that the above is
25 .
aha r&fi g?
Janet Beggs
26
27
28
Jonathan Wittwer
WITTWER PARKIN LLP
147 S. River Street, Suite 221
Santa Cruz, CA 95060
Tel: 83 I 429-4055
Fax: 83 I 429-4057
E: jonathan@wittwerparkin.com
David E. Schricker
10
LAW OFFICE 0F DAVID E. SCHRICKER
PC
563 S. Murphy Avenue
II
Sunnyvale, CA 94086
140
Tel: 408-5 17-9923
Whotley.
12
SUITE
Fax: 408-900-8225
95945-509]
E: dschricker@schrickerlaw.com
Sc
13
Dllve.
14
nghsmlth CA
Carl Nelson
16
Slena
Grass
BOLD, POLISNER, MADDow, NELSON & JUDSON
2125 Oak Grove Road, Suite 210
Coluntuono.
420
ii
“
__
EELED POS-O15
FOR COURTUSE ONLY
AflOthE‘l 0R PARTY WTmOUT MTORN‘EY (Nona S'Iara Birmbon mdoddmsd:
Michael o. Colantuno LSBN 143551.); Pamela K. Gcahalfl‘vsfialfi%)
A yuu “
DEFENDANTIRESPONDENT:
GRANADA COMMUNITY SERVICES DISTRICT, et a1. i?cv316927
GAE NUMBER:
NOTICE AND ACWOMEDGMENT 0F REOEIPT—GIVIL
NOTICE
The summonaand other documents Identified below are be1ng served pursuant to section 415.30 of1he Calrfornla Code of Clvn
Procedure. Your {allure lo complete this town and return ltwlthln 20 days from lhe date of malilng shown below may subject you
(or th‘e party on whose behalf youara balng served) to IIabnfly'for lhe payment of any expenses Incurred ln‘senfing a summons
on you in any other manner permuted by law.
Ifyou are being served on behalf of a corporation. an unInoorporated association (Including a partnership). or other entity, this
fo‘rm must be slgned by you in the name of such entity or by a persqn aulhorized to receive service of processon behalf ofalch
entity. In all other cases. this feTmmust be ngned by you personally or by a person duihorized by you to acknowledge receipt 01‘
summons. H you return thls fonn‘to the sender. service ofa summons ls deemed complete on the day yOu sign the
acknowledgmenk 01 raceIpt below.
PAMELA K GRAHAM
{M’s om: HINT NAME)
. p
[SLOMWRE 0F SEEER—MUST NOT BE A FWD! m OSE)
ACKNOWLEDGMENT OF RECEIPT
This acknowledges receipt of (to be completed bysenderbefore mailing):
1. A copy ofthe summons and ofih‘e complalnl. 17— DlV-U3092
-
‘
l? l ll Iflll
(To be complegedby reclpf n ; I
_ CIVIL com:
Baum1w:
'
3°
POS-OiSlRDVJcmnry l. 2005] (fag
PROOF OF SERVICE
I am employed in the County of Los Angelcs, State of California. I am over the age of 18
and not a party to the within action. My business address is 790 B. Colorado Boulevard, Suite 850, ’
10
BY MAIL: The envelope was mailed with postage thereon fully prepaid. I am readily
familiar with the firm’s practice of collection and processing correspondence for mailing.
PC
ll
Under that practice it would be deposited with the U.S. postal service on that same day with
postage thereon fully prepaid at Pasadena, California in the ordinary course of business. I am
140
thtley. [2
aware that on motion of the party served, service is presumed invalid if the postal cancellation
SUITE or postage meter date is more than one day after service of deposit for mailing in
95945-5091
ggtyd
1 avit.
8c
13
Drlue.
I4
U BY OVERNIGHT DELIVERY: I placed such document(s) listed above in a sealed
CA
nghsmnh
envelope, fer deposit in the designated box or other facility regularly maintained by FEDERAL
College
Valtey.
15
EXPRESS (FEDEX) and/or GOLDEN STATE DELIVERY (GSO) for overnight delivery, caused
such envelope to be delivered to the office of the addressce(s) on the attached service List via
Starla
l6 ?vemight delivery pursuant to C.C.P. §1013(c), with delivery fees fully prepaid or provided
Gross
or.
Colamuono.
420
17
El BY E-MAIL 0R ELECTRONIC TRANSMISSION: Based on a court order or mi
18
agreement of the parties to accept service by c-mail or elccu'onic transmission, I caused the
documents to be sent to the persons at the e-mail addresses listed above. I did not receive,
within a reasonable time afier the transmission, any electronic message or other indication
l9
that the transmission was unsuccessful.
20
D PERSONAL SERVICE: I caused such envelope to be delivered by hand to the addressee(s).
21
22 I declare Under penalty of peljury under the laws of the State of California that the above is
25
26 C7 aA/éc
5%“
am
Janet Beggs
x
27
28
Jonathan Wittwer
WI'ITWER PARKIN LLI’
147 S. River Street, Suite 221
Santa Cruz, CA 95060
Tel: 831-429- 4055
Fax: 831—429- 4057
'
E: jonathan@wittwerparkin.com
David E. Schricker
10
LAW OFFICE 0F DAVID E. SCHRICKER
PC
563 S. Murphy Avenue
II
Sunnyvale, CA 94086
140
Tel: 408-517-9923 _~ I
Whailey.
12
SUITE
Fax: 408—900-8225
95945-5091
E: dsch:icker@schrickerlaw.com
a Dtlve.
nghsmlih CA
College
Counsel for Defendant SewerAut/zoritv Mtd-Coastside
Vaney,
Sierra
Carl Nelson
Gzasa
I
BOLD, POLISNER, MADDow, NELSON & JUDSON
2125 Oak Grove Road, Suite 210
Colonluono.
420
27
23
ii
Gilli}. Dmx
6(5):;- lfllrifansfil v_Cn 11;:an r'nnqmunimflpnnfpi‘ nh‘h‘ifl PP f1] BRO 0F OF SERVICE
San Maeteo County Superior Case No. 17CIV03092
18201“
LRMIMMWMWUflkowaSUMmCau-MHMW
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140
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95945-7356
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13
& Drive. SUPERIOR COURT OF THE STATE OF CALIFORNIA
14
nghsmlth
CA
FOR THE COUNTY OF SAN MATEO
College
15
l?cvalsezy
Volley.
Slerra
16
Colontuono,
Grass
24
25
26
27
28
17CN03092
‘l. At the time ofservice Iwos at least 18 yea}: ofbge and no’t dpbfty to £th action.
3. a. Pargfserved: SEWERAUTHORITY'MlD-COASTSID'E.
-b.‘
Person served:- GEGRGE EVANS;ACCT.‘I‘EC.
4. Addrus Where the‘p'q'rty wa'sserv‘ect' 1000 CABRILLO HiGHWAY N.. HALF MDij'BAYrCA 9401 9
Rememblercbstfkerecpjoawamxal
6‘ Person Who Served Paper:
a. Edgar Mendez (201 5-0001 328 SF Coumy) d. wefF'eefo'rISeh/Ig'e wag? $
b. FIRST LEGAL NETWORK e. l'amm Régi'stered Califo'rnla Procé‘ss. Server
7.- ! declare under penalty ofperjury tinder the Iawsofthesmtérof California Hid} theforegvlhgi: true and‘corr'ect.
. .-;...s......
E By placing D the original a true copy thereof enclosed in a sealed envelope addressed
as follows:
10
[E BY MAIL: The enveIOpe was mailed with postage thereon filliy prepaid. I am readily
familiar with the firm’s practice of collection and processing correspondence for mailing.
PC 11
Under that practice it would be deposited with the U.S. postal service on that same day with
postage thereon fully prepaid a1 Pasadena, California in the ordinary course of business. I am
140
Whalley,
12
aware that on motion of the party served, service is presumed invalid if the postal cancellation
SUITE date or postage meter date is more than one day afier service 0f deposit for mailing in
95945-5091
afiidavit.
I3
& Dlive.
14
U BY OVERNIGHT DELIVERY: I placed such document(s) listed above in a sealed
nghsmlth CA
envelope, for deposit m
the designaxed box or other facility regularly maintainedu by FEDERAL
College
15
EXPRESS (FEDEx) and/or GOLDEN STATE DELIVERY (GSO) for overnight delivcxy, caused
Volley.
such envelope to be delivered to the ofiice of the addressce(s) on the attached service list via
overnight delivery pursuant to C.C.P. §1013(c), with delivery fees fiJIly prepaid or provided
Sleuo
16
Grass
for.
Colamuono.
420
l7
U BY E-MAIL OR ELECTRONIC TRANSMISSION: Based on a court order 0r an
18
agreement of the parties to accept service by e- mail or electronic transmission, I caused the
documents to be sent to the persons at the e-mail addresses listed above. I did not receive,
within a reasonable time after the transmission, any electronic message or other indication
l9
that the transmission was unsuccessful
20
U PERSONAL SERVICE: Icaused such envelope to be delivered by hand to the addressee(s).
21
22 I declare under penalty of pexjury under the laws of the State of California that the above is
25
26
OQ £33558“
27
28
Jonathan Wittwer
WITrWER PARKIN LLP
147 S. River Street, Suite 221
Santa Cruz, CA 95060
Tel: 83 1-429-4055
Fax: 83 1—429-4057
E: jonathan@wittwerparkin.com
David E. Schricker
10
LAW OFFICE 0F DAVID E. SCHRICKER
PC
563 S. Murphy Avenue
ll
140
Sunnyvale, CA 94086
Tel: 408-5 I 7-9923
Whailey.
I2
SUITE
Fax: 408-900-8225
95945-6091
E: dscluicker@schrickerlaw.com
8: 13
Dfive.
14
nghsmlth CA
College
Counsel for Defendant SewerAuthoritv Mid—Caastside
Volley. 15
Carl Nelson
Slerro
16
Gross
BOLD, POLISNER, MADDow, NELSON & JUDSON
2125 Oak Grove Road, Suite 210
Colcntuono.
420
[7
Walnut Creek, CA 94598
Tel: 925—933—7777
18
Fax: 925-933-7804
E: cnelson@bpgmnj .com
19
20
2}
22
23
24
25
26
27.
28
ii
C53}: annlfiMgn‘n Rm; v {?r/mndn pnmmunih! garlic?“ Diftrift Pt (2] PROOEOF SERVICE
San Mame?) County s’uperior Case No. 17CN03092
1820ll.1
lznn hue 10 p u: 613
SUMMONS SUM‘W"
(CITA CION JUDICIA L) (50L?§:&“5§o”§§3‘€5m
NOTICE To DEFENDANT:
(Awso AL DEMANDADO): g XE EEg y E Ed E L
GRANADA COMMUNITY SERVICES DISTRICT and {AN MATEO COUNT"
MONTARA WATER AND SANITARY DISTRICT am] 0m _ ,
.
court may decide against you without your being heard un1ess you tespond withiWays. Read the information
below.
You have 30 CALENDAR DAYS afier this summons and legal papers are served on you to flle a written response a is court and have a copy
served on the plaintiff. A Keller or phone cal] will not protect you. Your written response must be in proper legal form If you want the court to hear your
case. There may be a court form [hat you can use for your response. You can find these court forms and more lnfonnatlon a! the California Couns
Online Self-Hefp Center (wmmourfinfo.ca.gov/se!flzelp), your county law fibrary, or the couflhouse nearest you. If you cannot pay the ffiing fee. ask
the court clerk for a fee waiver form. If you do not file your response on time. you may rose the case by default. and your wages. money. and property
may be taken without further warning from the court.
There are other legal requirements. You may want lo call an attorney right away. If you do not know an attorney. you may want lo call an attorney
SCANNED referral service. If you cannot afford an afiorney, you may be eligible for free legal services from a nonprofit legal services program. You can locate
these nonprofit groups at the California Legal Services Web site (wmv.lawhelpcalifomla.org). the Cafifomia Courts Onllne SeIf—Help Center
(mvwxourflnfocagov/selflrelp). 0r by contacting your local court or county bar association. NOTE: The court has a statutory Hen for waived fees and
costs on any settlement or albitration award of $1 0.000 or more in a civil case. The court's lien must be paid before the courtwil! dismiss the case.
1A V1801 Lg han demandado. Si no responde dem‘ro d9 30 dies, Ia cone puede decidir en su contra sin escuchar su versr'én. Lea Ia informacfén a
conflnuaci n
"nene 30 DIAS DE CALENDARIO después de qua (e enfreguen esra citacién y papeles legales para presenter una respuesta par escriro en esta
corfe y haoar que se entregue una copia a1 demandante. Una cane o una lfamada telefénfca no lo pmlegen. Su respuesfa por escn'ro liens que estar
en formafo legal correcto sl dasea que procesen su caso en Ia corte. Es posible que haya un formulario que usied pueda usar paw su respuesra.
Puede encontrar estos fonnularios d9 la code ymés Informacldn en a} Centro d9 Ayuda de las Cortes de Caflfomla Mww.sucor1eca.gov), en Ia
biblioreca de [eyes de su condado o en la carts qua le quede mas cerca Si no puede pager Ia cuota d9 presentaclén, pida e! secretario de la code
que le dé un formuIan'o d9 exencldn de pago de cuofas. SI no presents su respuesfa a tlempo, puede pelder e! caso porincumpfimiento y Ia cone Ie
podré quitar su suefdo, dinem y bienes sin més advedancial
Hay arms requisiros legales. Es recomendable que Hams a un abogado inmedfatemente. 81' no conoce a un abogado, puede flamers un semicio de
mmlsidn e abogados. S! no puede pagara un abogado, es posible que cumpla oon Ios requisites para obtener servicios legales gratuitos d9 un
programa de serviclos fegafes sin fines de Iucro. Pueda encontrar estos grupos sfn fines de lucm en e! sifio web de California Legal Services,
(www.lavmelpcalifomia.org), en el Centm de Ayuda d9 Ias Cortes de California, (www.suco rte.ca.gov) o poniéndose en contado con Ia code o e]
oolegio de abogados locales. A VISO: Porfey, Ia code Ilene derecho a reclamar Ias cuofas y los oosfos exentos por imponer un gravamen sabre
cualquier recuperaclén de $10,000 é més de valor mcibida mediante un acuerdo o una concesldn d9 arbitraje gn un caso de derecho civil Tiene que
pager el gravamen de la oorfe antes de que Ia oon‘e pueda desechar el caso.
he name and address ofthe court Is: CASE NUMBER:
(El nombre y direccién d9 Ia code es): (Namero dc! Caso):
3. D on behalfof (specify):
w,
D
under.
C]
CCP 416.10
CCP 416.20
(corporation) D
a CCP 416.60
CCP 416.70
(minor)
D CCP 416.40
(defunct corporation)
(associatjon or partnership) D CCP 416.90
(conservatee)
(authorized person)
Judicial
sumac
Cmndl oi
me
Cafi‘om’a
2009]
80%.?
(Rev. 1.
Q1 P
«I
i?\ ll
2
ANTHONY P. CONDOTTI, State Bar
acon dotti@abc—!aw. com
ATCHISON, BARISONE & CONDOTTI, APC
NOMED Exempt from Filing Fees
Government Code § 6103
Q P..OBox 481 79W UCT--3 A l0:
.
113
3
Santa Cruz,CA95061
9%
'
5
MICHAEL G. COLANTUONO, State BamMBS
MColantuono@chwlaw. us
PAMELA K. GRAHAM, State Bar N0. 216309
PGraham@chwlaw. us
EDUARDO JANSEN, State Bar No. 302757 ~
-_I
EJansen@cthaw.us '
1l J3_"l
n
Telephone. y(530) 432-7357 :4
10
Facsimile: (530) 432—7356 ‘t‘rh
Hg,
~
PC [I
Attorneys for Plaintiff
140
1 7 C v 31 8 9 2 7
Whotley,
12
sung
95945-5091
I3
SUPERIOR COURT OF THE STATE OF CALIFORNIA
a DRIVE.
CA 14
FOR THE COUNTY OF SAN MATEO
nghsmlih
COLLEGE
15
-
VALLEY.
1
l 6
CITY OF HALF MOON BAY, a municipal CASE NO.
SIERRA
GRASS
corporation, Unlimited Jurisdiction
Colantuono.
420 17
Plaintifi, (Case assigned to Hon. )
18
22 Defendants.
23
and
24
25
SEWER AUTHORITY IvflD-COASTSIDE,
H IE
'27 3
film‘w ii
N“ ‘
28 \g ..
WNW“
1‘
‘ h
Petitioner City of Half Moon Bay (“City”) by this Complaint for Declaratory Relief
INTRODUCTION
1. The City of HaIfMoon Bay, Montara Water and Sanitary District (“Montara”), and
Granada Community Services District (“Granada”) formed the Sewer Authority Mid-Coastside
(“Authority”) pursuant t0 a 1976 Joint Exercise 0f Powers Agreement (“IPA”) to construct, own, and
operate regional wastewater treatment facilities to meet the very high cost of upgrading those
facilities to then-new federal standards. The Authority’s treatment facilities receive wastewater from
10 separate sanitary sewer collection systems owned by the City, Montara, and Granada — three
PC ll communities on the “Coastsidc” of northern San Mateo County. The IPA obliges the City, Montara,
140
Whailey.
SUIIE
12 and Gianada t0 bear the cost to fund capital improvements and replacements of facilities that benefit
95945609]
& DRIVE.
l3 them in proportion to their respective benefit, and protects each fiom any duty to fimd upgrades and
nghsmlth
CA 14 replacements of facilities it does not use. A dispute has arisen between the City, on the one hand, and
COLLEGE
VALLEY.
15 Montara and Granada, 0n the other, as to whether the City must share in the cost of $4.4 million in
SIERRA
GRASS
16 capital projects to replace portions 0f the Intertic Pipe System (“Intertie”) — a sewer force main and
Colaniuono.
420 l7 associated tanks, pumps, and mechanical and electrical components that convey wastewater from
18 Montara’s and Granada’s sewer collection systems to the Authority’s treatment plant in the City of
19 Half Moon Bay. The City brings this action t0 clarify its financial obligations pursuant t0 the IPA. A
20 true'and correct copy of the IPA and its eight amendments to date arc attached to the Complaint as
21 Exhibit A and a compilation bf thoée doéuments is attached to the Complaint as Exhibit B and both
22 are incorporated here by reference.‘
23 2. The Intertie was constructed shortly after the Authority was formed in 1976. Granada
24 and Montara funded the portion of the Intertig’s construction costs not funded by state and federal
25
26
Exhibit A, as attached to the Complaint, includes the original 1976 JPA, as well as all eight
1
27 amendments td the JPA to date. Exhibit B, as attached to the Complaint, is a consolidation of the JPA
and its amendments prepared by the Authority’s stafi‘, which accurately reflects the amended
28 agreement, but that has never been approved and executed by the City, Granada, and Montara It thus
bears the relation to the adepted JPA and its amendments that the West‘s or Deering’s Codes bear to
session laws —
they are reliable evidence of the law, but they are not law in and of themselves.
1
City-owned collection system does not drain to the Intenie, and in fact the Intertie has no capacity to
accommodate wastewater generated in the City’s sewer service area. Granada and its collection
system serve part of the City, thus the City distinguishes its entire area from its sewer—service area.
3. Like ali public work projects, the Intertie was constructed t0 be operated and
maintained for its useful life. Even with appropriate operation and maintenance, the Intertic would
eventually need to be replaced, as the JPA acknowledged. That time has come. Afler four decades 0f
use, significant portions of the Intertic are failing and must be replaced. The Authority has estimated
a cost of $4.4 million to replace the portions of the Intertie it designated as most critically in need of
IO replacement This sum will not fund replacement of the entire Intertie. It is imperative that the most
PC
11 critical replacements be funded promptly to ensure safe and lawful operation of the Authority’s
140
&.Wha1ley.
SUITE
regional collection and treatment systems and f0 protect public health, safety and the environment
95946-5091
13 4. The JPA anticipaied this need to replace the Intertie, and obligates the agencies that
DRIVE
Highsmlth
CA l4 benefit from it to pay for its replacement — Granada and Montara The IPA does not obligate the
COLLEGE
VALLEY.
IS City t0 fund any portion of the Intertie since the City derives no capacity rights 0r other benefits
SIERRA
GRASS
I6 from it
Colontuono,
420 I7 5. Gmnada and Montara have ncverthciess taken the position the City must contribute to
IS the cost to replace the Intertic. That position contradicts the language and intent of the JPA. Since the
19 creation 0f the Authority, the City has funded many capital projects. Going above and beyond its
20 legal obligations, as a member 0f the Authority, the City has been a responsible partner and
21 environmental steward, protecting the infrastructure needs of the coastal community and ifs
22 treasured landscape. The City, however, also has a fiduciary duty to act in the best interests of its
23 own ratepayers — interests contemplated and protected by the IPA. The City cannot contribute t0
24 $4.4 million in capital projects it is not legally obligated to fund and from which its ratepayers derive
25 no benefit
26 6. While the City is hopeful the parties to this suit will continue to seek to resolve their
27 difierences so that the critically needed Intenie replacements can proceed promptly, the City seeks
23
2
COMPLAINT FOR DECLARATORY RELIEF
1819511
rs,
this Court’s assistance in interpreting the JPA and declaring the City’s, Granada’s, and Montaxa’s
PARTIES
7. Plaintifi‘ City is a general law city organized under the Constitution and laws of the
8. Defendant Montara is a public agency organized and existing under the laws of the
State 0f California and located in County of San Mateo. Montara was known as the Montara
Sanitary Agency when the IPA was executed in 1976. Afier special legislation conferred the powers
10 0f a county water district upon Montara in 1992, it changed its name t0 the Montara Water and
PC ll Sanitary District.
140
Whatley,
SUITE
12 9. Defendant Granada is a public agency organized and existing under the laws of the
95945-5091
8c DRIVE.
I3 State of Califomia and located in County of San Mateo. Granada was known as the Granada
nghsmlth
CA 14 Sanitary Agency when the IPA was executed in 1976, but was reorganized as the Granada
COLLEGE
VALLEY.
15 Community Services Disuict in 2014.
SIERRA
16 10. Real Party in Interest Authority is a public entity created by the IPA among the City,
GRASS
Colantuono.
420 l7 Montara, and Granada. The Authority is governed by a six-member board of directors comprised of
18 two City councilmembers and two members each of Montara’s and Granada’s boards ofdirectors.
I9 Under the JPA, most Authority decisions arc by majority vote, with each City representativa having
20 two votes and each of the Montara and Granada representatives having one. As a result, many
21 Authority decisions fail on a 4-4 tie vote, when City representatives oppose Granada and Montara
22 representatives on an issue. A public entity separate fiom its member agencies, the Authority was
23 created pursuant t0 Title 1, Division 7, Chapter 5 of the California Government Code (the “Joint
24 Exercise of Powers Act”). Located in the County of San Mateo County, the Authority has the power
25 to sue and to be sued in its own name pursuant to Section II, paragraph C, subparagraph (7) of the
26 IPA and Government Code section 6507. (Exhibit B, Section II, para. (C)(7).)
27
28
3
COMPLAINT FOR DECLARATORY RELIEF
[31953.1
jURISDICTlON AND VENUE
11. The Court has jurisdiction over this matter under Code of Civil Procedure section
1060 er seq. because the City desires a declaration 0f its rights and duties with respect to the JPA and
Defendants.
12. Venue is proper in this Court pursuant to California Code 0f Civil Procedure
section 394 because all Defendants arc situated in San Mateo County.
13. The City is also entitled to a transfer 0fthis action to a neutral venue under California
Code of Civil Procedure section 394, subdivision (a) because the City brings this action against other
local agencies.
10
PC
140
11 GENERAL ALLEGATIONS
Whailey.
12
SUITE
14. On February 3, 1976, the City, Montara, and Granada entered into the JPA to create
95945-509]
8c 13
DRIVE.
the Authority for the planning, acquisition, construction, reconstruction, alteration, replacement,
CA l4
nghsmlth
repair, maintenance, operation, and control 0f sewer infrastructure for the San Mateo coast.
COLLEGE
VALLEY.
15
(Exhibit B, Section II, para. (3).) The Authority has since operated and maintained existing sewer
16
Colamuono,
SIERRA
GRASS
infiasn'ucture and funded and developed new sewer infrastructure pursuant to the IPA. (Ibid) The
420 17
City, Montaxa, Granada, and the Authority continue t0 rely on the IPA to “jointly exercise
18
common power [to treat and dispose 0f sewer] in the manner set forth [by the JPA ”.
(Ibid)
19
The Intertie — Construction, Useful Life_, and Proposed Replacement
20
15. The Authority constructed the Intertie under Phase I of the JPA, shortly after the JPA’s
21
1976 execution. The Intertie’s construction, net of state and federal grants, was funded only by
22
Granada and Montara, with the City assigned n0 benefit from, and thus no burden to fimd, it.
23
25 Phase I of the system is composed 0f the following three components, with capacity
26 rights, construction costs, and operation and maintenance expenses being shared as
28
4
COMPLAINT FOR DECLARATORY RELIEF
18l953.1
connecting the Montara and Granada systems to a new ocean outfall, shared equally
I6. The City’s sewer collection system does not drain to the Intertie, and the Intertie has
no capacity to accommodate wastewater generated in the City’s sewer-service area. Indeed, the
Intertie cannot accommodate wastewater from the Montara and Granada collection systems without
the use 0f a storage tank for each of the agencies to equalize peak flows into the Intertic.
17. Like all public works projects, the Intertie was constructed to be operated and
maintained for its useful life. (Exhibit B, Section IV, para. (B)(1)(d)(iii).) While the JPA does not
10 specify that useful life, the parties to the JPA foresaw that, even with appropriate operation and
Pc 11 maintenance, the Intertie would eventually require replacement Thus, the JPA provides, “each
14o
Whatley.
12 member agency hereby agrees t0 utilize the Phase I components as said components are completed
sung
?5945-5091
a DRIVE.
I3 and available for use, and to ensure the proper operation and maintenance of same in accordance
CA 14 with the requirements of the Regional Water Quality Control Board for the useful life thereof.”
Highsmllh
COLLEGE
VALLEY.
15 (Ibid. [emphasis added].) Afier four decades of use, critical portions of the Intertie must now be
GRASS
16 replaced.
31mm
Colcnruono.
420 l7 18. The Authority estimates it will cost approximately $4.4 million to replace these most
18 critical components ofthe Intertie. The Authority’s staff included that cost in the Authority’s
l9 proposed 2017—2018 General Budget That proposed budget, if approved and implemented, would
20 purport to obligate the City to bear approximately half the cost to replace critical portions of the
2] InterLie. However, the City does not use, benefit from, or Have any capacity rights in the Intenie.
22 (Exhibit B, Section IV, para. (B)(1)(a)(i).) Thus, adoption of the 2017—2018 General Budget as
23 proposed would purport to obligate City ratepayers to fund half the cost of a $4.4 million capital
24 project the City has no use for, £10 right to use, and no obligation to fund — contrary to the JPA.
25 19. Under the JPA, a member agency’s share of the Authority’s general fund is based on
26 its share offlows to the Authority’s plant. (Exhibit B, Section IV, para. (B)(4).) Based on its flows,
27 the City is responsible for a bit more than half of the Authority’s general fimd. By contrast, only
28
S
COMPLAINT FOR DECLARATORY RELIEF
1819531
member agencies participating in a particular capital project contribute to its budget (Exhibit B,
20. The JPA distinguishes capital proj cots —— to be funded by project budgets from
general maintenance, operation, and administration costs — to be funded by the general budget. The
$4.4 million capita! replacement 0f the Intertie is a capital project for which MontaIa and Granada
must approve a proj ect budget, as those entities alone will benefit from, and therefore must fund it.
21. The IPA provides the Authority‘s general budget is “the approved budget applicable
t0 the expenses of administration of the Authority and operation and maintenance of the facilities.”
PC ll
mo (1) the general administrative expenses of the Authority ...; (2) the expenses of operating and
12
Whatley,
SUITE maintaining any improvements ...; (3) all revenues accruing t0 the Authority, including the
95945-5091
13
& DRIVE. assessments allocated among the members agencies to cover the general administrative, operating
nghsmith
CA [4
and maintenance expenditures ...”. (Exhibit B, Section V, para (A)(1) — (3) [emphasis added].)
COLLEGE
VALLEY.
15 “the approved budget applicable t0 a
22. By contrast, the IPA defines a project budget as
SIERRA
GRASS
16
particular study, plan or faciiity.” (Exhibit B, Section I, para. (m).) A project “may include a study, a
Colcmuono,
420 I7
plan, or a facility.” (Exhibit B, Section I, para. (1).) A “[p]roject budget may include the following:
18 expenses allocated to the project; (2) the costs 0f studies and
(1) the Authority’s administrative
I9 planning for the project; of engineering and construction of the project; (4) the
(3) the cost
20 allocation among the participating member agencies of the total project costs including but not
21 necessafily limited to admirfistration, planning, design, construction and operation and maintenance;
22 to the Authority for the proj ect fiom whatever source.” (Exhibit B, Section
(S) any revenues accruing
23
V, para (B)(1) — (5) [emphasis added].)
24 23. “Construction” and “maintenance and operation” have independent meanings in the
25 IPA and in common usage. The JPA consistently distinguishes the two. (Exhibit B, Section I,
28 the Authority]; Section VII, para. (A) [before “construction of any project,” Board must determine if
6
COMPLAINT FOR DECLARATORY RELIEF
1819531
Authority will “maintain andfor operate such facilities”].) Section IX also distinguishes among
system.” (Exhibit B, Section 1X.) Similarly, the JPA’S statement of purpose separately lists the
Authority’s purposes as: construction, reconstruction, and maintenance and operation. (Exhibit B,
Section II, para. (B) [“Puxpose of the Agreement The parties hereto have in common the power to
plan for, acquire, construct, reconstruct, alter, enlarge, replace, repair, maintain, manage, operate and
control facilities for the collection, transmission, treatment and disposal of wastewater .”]; see
24. The use of these terms in series shows each has independent meaning and
10 “maintenance and operation" do not include “construction” or “rcconsimction.” Otherwise, oniy one
PC ll would be stated. (McCarther v. Pacific Telesis Group (2010) 48 Cal.4th 104, 110 [“A construction
140
Whafley.
sune
12 making some words surplusage is t0 be avoided.”]; cf. Manufactw'ers Life Ins. C0. v. Superior Cour!
95945-509]
8c
l3 (1995) 10 Cal.4th 257, 274 [“Well-established canons of statutory construction preclude a
DRIVE
nghsmlth
CA 14 construction which renders a part of a statute meaningless or inoperative.”].)
COLLEGE
VALLEY.
15 25. Many factors support the City’s position — the age of the Intertie and its finite useful
SIERRA
GRASS
16 life, the replacement nature of that project is now in dispute, the significant cost of that proj cct, the
Colamuono.
420 17 nature of the costs t0 be incurred, the City’s lack of benefit from the Intertie, and the JPA’S
18 distinction 0f “construction” fiom “maintenance and operation.” The $4.4 million capital
19 replacement of the most critical Intertie components must be funded pursuant t0 a capital project
20 budget and not the general budget. A $4.4 million project to replace infi-astructure that has reached
21 its useful life is not “the expenses of operating and maintaining improvements” or “geheral
22 administrative expenses.” Instead, the Intertie replacement projects disputed here require planning,
25
The City, Granada and Montara Can Withdraw From Projects
26 — Including the lntertie
27
26. Under the IPA, any 0f the City, Montara, or Granada may withhold its approval of
7
COMPLAINT FOR DECLARATORY RELIEF
I8l953.1
J xv
benefit fiom, and are therefore obliged t0 fund, the associated projects. (Exhibit B, Section III,
para. (F)(3) &Section V, para. (B).) A project cannot begin “without consent of every participating
member agency.” (Exhibit B, Section HI, para. (F)(4).) Ifthe City withdraws from a project, it is not
obligated to contribute to that project’s budget nor may it benefit fiom that project. (Exhibit B,
27. Accordingly, the City can withhold its approval of the Intertie proj ect budget. If so,
the City will not be obligated to pay for the Intertie and will not be entitled to any benefits from the
10
FIRST CAUSE OF ACTION
PC
11
DECLARATORY RELIEF
140
Whoney.
SUITE
12 (AgainstAll Defendants)
95945—509]
8: 13 28. The City realleges paragraphs 1 through 27 above as though set forth fully here.
DRIVE
nghsmh‘h
CA 29. An actual and present conuovcrsy has arisen and now exists between the City, on the
COLLEGE
VALLEY.
15 one hand, and Defendants on the other. The City contends the IPA does not oblige the City to fund
SIERRA
GRASS
16 any part of the $4.4 millibn Intertie capital replacement projects disputed here — projects to replace
Colunluono,
420 l7 portions of the Intertie that the City has not used and will not use, benefit from, nor possess capacity
18 rights in. Defendants, on the other hand, contend that replacing portions of the Intertie constitutes
19 “operation and maintenance” and is therefore a general budget expenditure for which the City must
21 30. The JPA requires the Authority’s annual general budget be presented to its Board no
22 later than the “March meeting 0f the Board.” (Exhibit B, Section V, para (A).) The Authority’s
23 proposed 2017—2018 General Budget “was discussed at the March 27, 2017 board meeting and was
24 submitted to the member agencies on March 28, 201 7, for feedback.” (Exhibit C, Authority’s June
25 26, 2017 Board Meeting, Agenda Item N0: 8A, Staff Report, pp. 1
— 2.) Since then, the member
26 agencies have negotiated regarding the proposed 2017—2018 General Budget which — as presented
27 by Authority stafi to its Board — included the $4.4 million Intertie Replacement projects. Authority
28
8
‘
contends is required.
3 1. At the Authority’s June 12, 2017 meeting, the City’s representatives on the
Authority’s Board stated they would approve the Authority’s 2017—201 8 General Budget on
condition the $4.4 million Intertie replacement proj cots were excluded fi'om the general budget and
made the subj ect of as separate project budget to be fimded by Granada and Montara. Granada’s and
Montara’s representatives on the Authority’s Board took the position the $4.4 million Intertie
replacement projects should be included in the general budget. Video of that meeting appears on the
Authority’s website at
IO <https://www.youtube.com/watch?v=h1niUxSquc&1isFPLFUunuheJOZUtAyryiM4MOg9xSu3CT9
PC
11 JW&index=2> (as of July 7, 2017).
140
Whatley.
SUITE
12 32. The Authority’s Board again discussed the proposed General Budget at its June 26,
95945-509]
a DRIVE.
l3 2017 meeting. A true and correct copy of the Authority’s June 26, 2017 board meeting agenda is
nghsmlih
CA I4 auached to the Complaint as Exhibit D and video of that meeting appears on the Authority’s website at
COLLEGE
VALLEY,
15 <https://www.youtube.com/watch?v=WdeNnVi5wQ&list=PLFUunuheJOZUtAyryiM4MOg9xSu3
SIERRA
GRASS
I6 CT9IW&index=1> (as ofJuly 7, 2017). After significant negotiations, the City and Defendants have
Colaniuono.
420 I7 not reached an agreement concerning, and the Authority‘s Board has not approved, a general budget
20. problems for the Authority and its member agencies —-— the City, Montara, and Granada. First, the
21 Authority lacks a budget and spending authority for the current fiscal year until a general budget is
22 approved. Second, failure t0 adopt a general budget threatens the continued existence of the
24 34. The City desires and is entitled to a judicial declaralion that capital projects such as
25 large-scale pipe replacement do not constitute “operation and maintenance” and the IPA therefore
26 does not oblige the City to contribute to the cost ofthe $4.4 million in Intertie capital replacement
28 35. Therefore, the City prays for declaratory relief as specified more fully below.
9
COMPLAiNT FOR DECLARATORY RELIEF
[81953.1
PRAYER
WHEREFORE, the Plaintiff City 0f Half Moon Bay prays for relief as follows:
36. For a judicial declaration that the proposed $4.4 million Intertie capital replacement
37. For a judicial declaration that the JPA authorizes the City to withhold its approval 0f
project budgets and to withdraw from a project to avoid further financial responsibility for that
project.
38. For ajudicial declaration that the JPA authorizes the City to withhold its approval 0f
PC [I 39. -
For a judicial declaration that the City has not benefitted and does not benefit from
140
Whofley.
SUITE
12 the Intertie and therefore need not contribute to funding its replacement and reconstruction.
95945-5091
& DRIVE.
13 40. For ajudicial declaration that the JPA obligates only Montara and Granada to fund
COLLEGE
VALLEY.
15 41. For costs of suit incurred herein and attorney fees pursuant t0 Code of Civil
SIERRA
GRASS
16 Procedure 1021 .5.
Colontuono.
420 17 42. For such other and further relief as the Court deems proper.
18
23
P&Wkfiwfi’wfl
MICHAEL G. COLANTUONO
24
PAMELA K. GRAHAM
25 EDUARDO JANSEN
26
27
28
10
COMPLAINT FOR DECLARATORY RELIEF
\819511
EXHIBIT A
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agreement; and‘
gs
WHEREAS, Title l, Divigion 7, Chapter 5 of the Government .
them:
NOW, THEREFORE, in consideration of the mutual terms,
covenants and cenditions herein contained, the parties hereto agree
as follows:
I . QEFINITIONS
construction.
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herein.'
~
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Powers of the Authority. The Authority shall haVe
(C?
the power, in its own name, to do any or all of the following:'
‘(13 to make and enter into contracts;
(2) to‘contract for the services of engineers,
attorneys, planners, financial consultants, and separate
ang apart therefrom to employ such other persons as it
V ‘
degms neéessary;
(3) to make plans and conduct studies;
(5) to acquire, construct, reconstruct, alter,
enlarge, replace, repair, maintain, manage, operate and
coptrol any bqéldings, works or improvements;
45% Egg
Section 6540 .
(b) Chapter 6, Title 5, Division 2 of the
California Government Code, commencing with
Section 54300.
(c) Chapter 5, Part 3, Division S of the
CalifcyniawHealth and.Safety Code, commencing
with Section 4950.
The above powers are subject to the restrictions, upon the
manner ofi exercising said powars, set forth in the Sanitary District
Adt of 1923, as amended, being Sections 6400 et seq. of the
California Health and Safety Code.
(D) Boundaries. The boundary of the Authority shall be the
consolidated boundaries of the member agencies. Said boundaries
shall be set forth and depicted on Exhibit "A" as amended or supple-
mented from time to time, attached hereto and by this reference made
a part hereof. In the‘event of withdraWal from this Agreement by a
’
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necognize that certain lands are within the boundaries of £he City
9f Half'Moon Bay as.we;1 as, at the same time, within the boundaries
éf the Granada Sanitary District, and vice versa. To the extent that
fiuture sewer service is provided to all or any portion of said landm-
éy any member agency electing and empowered to do so, that member.
§gency shall provide said service from its own facilities or from
ita own share of capacity of any jointly owned facilities, without
in ahy way demanding that said provision of service shall diminish
ghe share of capacity owned by any other member agencyo
III . ORGANIZATION
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accountant or public accountants to make an annual audit of the
accounts and records of the Authority: In each case the minimum
requirements of the audit shall be those prescribed by the State
Controller for special districts under Section 26909 of the
Government Code and.shall conform to generally accepted auditing
standards. The records and accounts of the Authority shall be
audited'annually, and a report thereof shail be filed as a public
record with the‘Authority and with each of its member agencies
and the San Mateo County Auditor, not later than six (6} months
following the end of the fiscal year under examination. Any
cost; of the audit, including contracts with or employment of, a
certified public accountant or public accountants shall be borne
by the Authority and shall be charged against its general fund.
(M) Access to Property. The manager and treasurer are
hereby‘designated as the persons who have charge of, handle, and
have access to the property of the Authority. Each such person
shall file with the Authority an official bond in an‘amount to be
fixed by the Board. Cost of said bond shall be paid by the Authority. i
IV. PLANNING
3‘
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Planning Policx.
(A) In keeping with‘the purpose of this
:;‘ngeement, the member agencies hereby authorize and direct the Board
to undertake sfich étudges and planning relative to the combined
service areas of the member agencies as may be necessary, to provide
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expenditures;
At the time of its preparation a general budget
(4) 5
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(3) the cost of the engineering and construction
of the project;
(4) the allocation among the participating member
agencies of the total project costs including but not
necassarily limited to administration, planning, design,
construction and operation and maintenance:
(5) any revenues accruing t0 the Authority for
the project from whatever source.
After the preparation of a Project Budget, it shall be
j
submitted immediately to each member agency proposed by the Board
to be a participant and to be obligated for the payment of any amount
thereUnder. The Authority shall not ificur any expense for the project
until the Project Budget has been approved by the governing body of
each of the proposed participating member agencies. Consent of the
participating membér agencies shall be required within a reasonable
léngth of time, said time to be determined by the Board when the
Project Budget is, prepared. Upon approval by all of the participating
member agencies, the Board shall adopt the Prdject Budget and file
a copy of same with each of the participating member agencies.
(C) Effect of Failure of Approval of Budgets.
General Budget. If a general budget fails to
(1)
attain the approval requiréd by Section (A) hereof, the'
dfirector(s) of consenting member agencies may treat the
refusal of a dissenting member agency to approve the.
budget as a request for withdrawal from the Authority
'and the remaining members may thereafter, uppn giving.the
non—consenting member agency thirty (30) days notice,
proceed with the adoption of a revised budget and the
non-consenting member agency shall not~be obligated for
future Hebts of phe Authority nor shall it receive any
benefits therefrom.
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Pertaining to past debt obligations, hdwever, the
non-consenting member égency shall continue to be obligated
for_the operation and maintenance costs, under the *
that:
g contributions from a member agency's treasury
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X. MISCELLANEOUS PROVISIONS
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JOINT LETTER 0F UNDERSTANDING
BETWEEN THE CITY 0F HALF MOON BAY r
DETERMINATIONS
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3. An alternative project to that described in l.
above, known as the "bare boned" version of Plan A
(paréial consolidation) of the'Supplemental Project
Report — Phasg I / Final Project Report submitted
to the state onihugust l3, 1975, must be pursued
simultaneously with the alternative set forth in l.
above in the eventuality that full funding of this
total consolidation alternative is not forthcoming
and has to be abandoned.
COURSES 0P ACTION
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Amendment 1
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AGREEMENT
and entered into by and between the City of Half Moon Bay, herein—
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WHEREAS, Half Moon Bay, Montara, and Granada have hereto—
Agreement;
follows:
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Amendment 2
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into by and between the City of Half Moon Bay, hereinafter referred
to as "Half Moon Bay", the Montara Sanitary District, hereinafter
referred to as "Montara", and the Granada Sanitary District, herein—
after referred to as'"Granada";
ELIE£§§§IE'
WHEREAS, Half Moon Bay,‘ Montara, and Granada have, on February 3,
1976, entered into an agreement entitled ”An Agreement Creating the
Sewer Authority Mid-Coastside", and said parties‘have,'by Agreement
dated June 21, 1976, amended said Agreement; and
WHEREAS,-said parties desire'hereby to further amend said
Agreement; .
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Bay outfall line, shared one——ha1f (é) by Half Moon Bay, one-
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same, the Authority shall immediately process an applicatipn
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with the California Coastal Commission, Central Coast Regional -\
Commission. for amendment of Coastal Development Permit No.
P—79—93. Any modification of said component, pursuant to the
cost—effectiveness study mentioned hereinafter or otherwisg, .
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(THIRD AMENDMENT)
entered into by and between the City of Half Moon Bay, hereinafter
referred to as "Half Moon Bay", the Granada Sanitary District,
hereinafter referred to a3 "Granada", and the Montara Sanitary
District, hereinafter referred to as “Montara”:
Elz§§§§§$$
WHEREAS, Half Moon Bay, Granada, and Montata have heretofore
entered into an agreement entitled "An Agreement.Creating the Sewer
Authority Mid—Coastside", dated February 3, 1976;
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2. The Secretary of the Authority shall file with the
Secretary of State a notice in accordance with Government Code
Section 6503.5. and shall file notices. as appropriate, in
accordance with Government Code Section 53051.
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Attest,
BY 1/37;;€:;;I£>//<%§é;/
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(seal) (geal)
President
Attest:
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(seal)
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IPA
Amendment 3
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AGREEMENT
AMENDING AN AGREEMENT CREATING
THE SEWER AUTHORITY MID-COASTSIDE
(THIRD AMENDMENT)
entered into by and between the City of Half Moon Bay, hereinafter
referred to as "Half Moon Bay", the Granada Sanitary District,
hereinafter referred to as “Gxanada", and the Montara Sanitary
District, hereinafter referred to as "Montara":
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WHEREAS, Half Moon Bay, Granada, and Montara have heretofore
entered into an agreement entitled "An Agreement Creating the Sewer
Authority M1d*Coastside”, dated February 3, 1976:
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2. The Secretary of the Authority shall file with the
Secretary of State a notice in accordance with Government Code
Section 6503.5. and shall file notices, a3 appropriate, in
accordance with Government Code‘Section 53051.
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Mayor -
President
Attest:
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Attest:
(seal) (geal)
President
Attest:
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Secretary (Acting)
(seal)
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IPA
Amendment 4
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AGREEMENT
AMENDING AN AGREEMENT CREATING
THE SEWER AUTHORITY MID-COASTSIDE
(FOURTH AMENDMENT)
entered into by and between the City of Half Moon Bay, hereinafter
referred to as "Half Moon Bay", the Granada Sanitary District,
hereinafter referred to as "Granada”. and the Montara Sanitary
District, hereinafter referred to as "Mentara":
W I T N E S S E T H:
Agreement;
NOW, THEREFORE, in consideration of the mutual terms,
covenants_and conditions herein contained, the,parties hereto agree
to amend said Agreement as follows:
By '
By
Brian Beer, Mayor res ent
Attest: Attest:
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By //L//'Aadx Q5 ecretary
Cl
RalphenacR. %ues te~r
(SEAL) (SEAL)
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President
Attest:
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IPA
Amendment 5
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AGREEMENT kn
AMENDING AN AGREEMENT CREATING
THE SEWER AUTHORITY MID—COASTSIDE
(FIFTH AMENDMENT)
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Each member agency hereby agrees to adopt wastewater
treatment standards and regulations consistent with
wastewater treatment standards and regulations adopted by
the Authority.
3005000/26
IN WITNESS WHEREOF, the parties hereto have caused these
presents to be executed 0n the day and year first above written._
By%m0
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Mayor
Patz‘idge
President
Attest:
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Ralphena R. Guest
By Jm 146%
Secretary
3095000/26
IPA
Amendment 6
AGREEMENT
AMENDING AN AGREEMENT CREATING
THE SEWER AUTHORITY MID—COASTSIDE
(SIXTH AMENDMENT)
THIS AGREEMENT, dated June 23, 2003, is made énd entered into by and between
the
City ofHalf Moon Bay, hcreinafier referred to as “HalfMoon Bay,” the Granada
Sanitary
District, hereinafter referred to as “Granada,” and the Montara Sanitaxy District, hcrcinaficr
referred to as “Montara”;
flllflflfififlifi
WHEREAS, Half Moon Bay, Granada, and Montara. have en}ercd into an agreement
entitled “An Agreement Creating the Sewer Authority Mid—Coastside,” dated February 3, 1976
(the “Agreement”), the Sewer Authority M&Coastside bcing herein referred to as the
“Authority”;
WHEREAS, the panics have on five prior occasions amended the Agreement;
WI-EREAS, the Agreement provides that the officcfs ofthe Authority shall hold ofiicc
fora. period of one year, commencing July 1 of each year, and
WHEREAS, the member agencies dwire to further amend the Ageement in order to
provide that the one yea: period for holding office commence on January l of each year,
NOW, THEREFORE, the paniw agree that Article II], Section (H) of the Agreement 1's
“(H) Officers
The Authority shall have three officers: Chairman, Vice Chairman and Secretary.
The directorsof the Board shall select fiom the Board these three officers who shall hold
ofice for a period of one year, commencing January l ofeach year, provided, however,
that the current oficcrs shall hold office until December 3 l, 2003, and provided further
that, in the event that a member agency removes fiom the Board a director serving as an
officer, the Board shall appoint another director to fill the vacant office for the remainder
of that ycar.
(1) The Chairman shall preside at the meetings ofthe Board. The
Chainnan’s dutiw shall be to call meetings to order, adjourn meetings, announce the
business before the Board in the order in which it is to be acted upon, recognize directors
and non-directors entitled to the floor, put to vote all questions moved gnd secoaded,
announce Iwults ofvotw, maintain the rules of order, execute documents on behalf ofthc
Board when duly approved for action, and can'y out the other duties set forth in the
bylaivs. The Chairman shall be entitled to‘ exercise his full voting rights on all questions
before the Board and need not relinquish the chair to discuss a question before the Board
WI 132211.594 30050/u’30050f00000
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(2) A
Vice Chairman shall be selected and hold office in the same
manner
Chairman and in the absence ofthc Chairman shall preside and hold
as the
the same
powers as if he were the Chairman.
(3) A Secretary shall also be selected fi'om the Board by its directors.”
IN WITNESS WI-BRBOF, the parties have caused time prments to be executed as of the
day and year first above Written.
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City‘Clerk
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By
Attest:
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President
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Secretary
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JPA
Amendment 7
AMENDMENT TO AGREEMENT CREATING
THE SEWER AUTHORITY MID-COASTSIDB
(SEVENTH AMENDMENT)
THIS AMENDMENT, dated as oprn'l 1, 2010, is made and entered into by and
‘
between the City ofHaIfMoon Bay, hereinafter referred to as “HalfMoon Bay,” the Granada
Sanitary District, hereinafier referred to as “Granada,” and the Montara Water and Sanitary
District (formerly the Montara Sanitaxy District), hereinafier referred to_ as “Momma”;
WHEREAS, HalfMoon Bay, Granada, and Montara have entered into an agecmcnt
entitled “An Agreement Creating the Sewer Authority Mid-Coastside'f' dated February 3, 1976
(the “Agreement” ,
the Sewer Authority Mid-Coastside being herein referred t0 as the
“Authority”;
WHEREAS, the parties have on six prior occasions amended the Agreement;
WHEREAS, the Agreement provides that the Authority shall have three officers
(Chairman, Vice Chairman, and Secretary), and requires that one 0f those officers be appointed
Treasurer, and
WHEREAS, the member agenciw desire to further amend the Agreement in order to
provide that the Authority shall have four officers, and that one ofits directors shall be appointed
Treasurer;
“(H) omccrs
The Authority shall have four omcers: Chaiman, Vice Chaimlan, Secretary and
Treasurer. The directors ofthe Board shall select fi'om the Board these four officers who
shall hold office for a period of one year, commencing January 1 of each year; provided
that, in the event that a member agency removes fi'om the Board a director serving as an
ofiiccr, the Board shall appoint another director to fill the vacant office for the remainder
of that year.
(1) The Chairman shall preside at the meetings of the Board. The
Chairman’s duties shall be to call meetings to order, adjourn meetings, announce the ,
business before the Board in the order in which itjs to be acted upon, recognize directors
and non-direotors entitled to the floor, put to vote all questions moved and seconded,
announce results ofvotes, maintain the rules of order, execute docummts on behalf of the
Board when duly approved for action, and carry out the other duties set forth in the
bylaws. The Chairman shall be cnu'tled to exercise his full voting rights on all questions
before the Board and need not relinquish the chair to discuss a question before the Board.
(2) A Vice Chairman shall be selected and hold office in the same manner
as Chairman and in the absence of the Chairman
L’ne shall preside and hold the same
powers as ifhe were the Chairman.
2. Article III, Section (I), Subséction (2) ofthe Agreement is amended to read as
follows:
“(2) Treasurer. The Treasm'er shall be the depositary and have custody of all
money of the Authority from whateVer source.
(a) Receive and receipt for all money of the Authority and place it in the
treasury of the Treasurer to the credit of the Authority.
Pay any other sums due fiom the Authority fi'om Authority money, or
(d)
any portion thereof only upon checks drawn against the Authority, duly authorized by the
Board and executed by two directors or by one director and the manager.
3. The Secretary of the Authority shall file with the Secretary of State a notice in
accordande with Government Code Section 6503.5, and a copy of the filll text ofthe Agreement,
and any amendments thereto, with the State Controller in accordance with Government Code
Section 6503.6. The Secretary ofthe Authority shall also file with the Secretary of State and the
San Mateo County Clerk notices, as appropriate, in accordance With Government Code Section
53051.
IN WITNESS WHEREOF, the parties have caused these presents to be executed as of the
day and yea: first above wn'ucn.
B
‘
Mayor
u
::-,:V
Qiégt
fy/V’
z»
Wm fa
CF/q
/
[a
By
President
t‘ ®Q\?fl'z"x
Angst; Attest:
I,
’
Bfibmahavw By
VVV\
City Clerk Seer tary
GRANAD/Arlszwrrlf
’[DISTRICT
‘_
'
President
Attest:
By
x
/
@1/ WW
Secretary
(EIGHTH AMENDMENT)
THIS AMENDMENT, dated as ofFebriJary 1, 2011, is made and entered into by and
between the City of Half Moon Bay, hereinafier referred to as “Half Moon Bay,” the Granada
Sanitary Districthereinafier referred t0 as “Granada,” and the Montara Water and Sanitary
District (formerly theMontara Sanitary District), hereinafter referred toas “Méntara‘”;
WHEREAS, HaIfMoon Bay, Granada, and Montar'a have entered into an. agreement
entitled “An Agrcément Creating the Sewer Authority MideCoastside,” dated February 3, I976
(the *‘Agreemenl’d, the Sewer Authority Mid-Coasts‘ide being herein referred to as the
“Authority”; .
WHEREAS, the parties have On seven prior occasions amended the Agreement; and
“III. ORGANIZATION
(I) each director from Half Moon Bay shall be Entitled to two
votes; each directbr fiom Montara and Granada shall be entitled to one
Vote;
(3) .
final approval’of anyr'general budget or project budget shall
require the’ consent of every member agency or participating member
agency as provided m Section (G) hereof, and Article V, Sections (A) (B),
and (C), thereof;
'
(1) The Chair shall preside at the meetings of the Board. The
Chair’s duties shall be to call meetings‘to order, adjourn meetings,
announce the business before the Board in the order in which it is to be
acted upbn, recognize directors and nou-directors entitled to the floor, put
to vote all questions moved and sec'o‘nded, announce results of votes,
maintain the rules of order, execute documents on‘behalf of the Board
when duly approved for action, and carry out the other dutiw set forth in
the bylaws. The Chair shall be enfitled t0 exercise his Other full voting
rights on all questions before the Board and need not relinquish the chair
to discuss a question before the Board.
(2.)_ AVice Chair shall be selected and hold ofiice in the same
manner as the Chair and in the absence of‘the' Chair shall preside and hold
the same powers as ifhe or she were the Chair.
directors. _
The Chair may not serve in two officer posifiofis simultaneously. Any
director 'o'ther‘ than the Chair may serve in two officer positions simultaneously.
(I) m
the Authority shall initially
Ganeral stafffimotions to s.srve‘thc administrative needs of
be provided by employees of thcmcmber agencies,
and credited towards said respective member agencies’ financial contributions or
obligaiions as provided in Article V, Section (D) below. The étaffposftions shall
‘
be as follows:
.'
Manage]: The authority shall employ or contmct for the
(1)
services bf amanager Who may or may not be a staffmembcr'of one of the
member agencies. The manager shall answer to the‘Board and be
responsible for‘all administrative needs ofthe Authority. The manager
shall also b6 respdnsiblc for the genera] echution of all Authority policies
as set by the Board.
(d) Pay any other sums due from the Authority fi‘om
Authority money, qr any portion th'ereof; only upon checks drawn
against the Authon'ty, duly authOri'zed by the‘ Board and executed
by two directors or by dne director and the manager.
r
each of the member agencies, the amount ofmoney the Treasurer
holds for the Authofity, the amount ofreceipts since the last report,
and the amount paid out sinca the last r‘epofi.
(3) Others. The Board may employ 0r contract for the services
of individuals .or Other staffpositions
as ncpmsqry to assist in the
administration and execution ofthe functions Qf'the Authon’ty;
Charges for Services. Charges for the services 0fthe manager, the
treasurer, and. other administrative or Operating personnel supplied by any
member agency shall be jointly agreed upon with the member agency or member
agencies finfnis’hing the services in advance ofreccipt ofsaid ségviccs.
agency. The appointment _or employment by the Board of such a person shall
constitute a determination that the two positions are compatible. Notwithstanding
the above, the Manager and the Treasurer, shall not be employefi of the same
member agency without the unanimous consent of t'hq complete Board of
Directors.
A11 privilegac and immunities Eon] liability, all exemptions from laws,
ordinances and rules, and all pension, relief, disability, workers’ compensation,
and other benefits which apply to the activities ofofficer‘s, agents, or employees
(O) The Board may adopt fi‘om time to time such rules and regulations
Rules.
for the conduct ofits affairs as m_ay be required. Parliamentary rules and procedurgs shall
be those prescribed in Robert’s Rules of Order Any documents required to be executed
by the Authority s_hall be signed by the Chair and countersigned by the-Secretary, except
that the Board may, by resolution, authorize other offiCBrs or employee's to sign on behalf
of the Authority.”
2. The Secretary’ofthe Authority shall file with the Secretary of State a notice in
accordance with Government Code Section 6503.5, and a copy of the filll text of the Agreement,
and any amendments thereto, with the State Controller in accordance with Government Code
_
IN WITNESS WHEREOF, the parties have caused these presents t0 be executed as ofthe
day and year first above written.
/
MOON BAY MONTARA WATER AND SANITARY
CITY OF HALF
DISTRICT
L
By k/x/L’Jiwo
"
/ 5‘ 2444/7
Mayor / ‘
By I
Premdent
-
Attest:
By
City Clerk
i
By?
///
WM;
Countersigned:
By @z/
fl
W
President
Secreiary
AN AGREEMENT CREATING a
THE SEWER AUTHORITY MID—COASTSIDE
'
consolidated and updated as of October 10, 2011 {includes revisions resulting fiom amendments 1 through 8 to the
original agreement)
AN AGREEMENT CREATING
THE SEWER AUTHORITY MID—COASTSIDE
TABLE OF CONTENTS
Page
A. Membefshjp ........................................................................ 4
B.
‘
Designation of Directors .......................................................................................... 4
C. Principal Office ...................... .....................
. ..... .......................................... 5
.
D. Meetmgs ....................................................................... 5
I. Staff .......................................................................................................................... 6
1. Manager ....................................................................................................... 6
2. Treasurer .......................................................................... ........ 6
3. Others ........................................................................................................... 7
J. Charges for Services ..... ............... . ................................................ . ................. 7
K. Officers, Employess and Agents .............................................................................. 7
L. Accounting and Audits ............................................................... ................... 7
‘
a. Components ..................................................................................... 8
b. Possible Modification 0f Intertie Pipeline Component... .........9
2. Phase II ....................................................................................................... 10
a. Alternate Treatment Facilities........................: ............................... 10
b. Determination of Phase II Treatment Facilities ............................. 11
c. Implementation ofPhase II of Present Project .............................. 11
'
A. Duration ................................................................................................................. 1 8
B. Rescigsion and Termination ................................................................................... 18
C. Wlthdrawal ........................ 18
ii
iii
AN AGREEMENT CREATING
. .
THE SEWER AUTHORITY MID-COASTSIDE
THIS AGREEMENT, dated February 3, 1976, is made and entered into by and between
the City of Half Moon Bay, hereinafter referred to as “Half Moon Bay”, and the Montara
Sanitary DisU‘ict, hcreinafier referred t0 as“‘MontaIa”, and the Granada Sanitary District,
hereinafier referred to as “Granada”;
WITNESSETH:
WHEREAS, the parties hereto have in common the power t0 plan for, acquire, construct,
manage, operate and control facilities for the
reconstruct, alter, enlarge, replace, repair, maintain,
collection, transmission, treatment and disposal of wastewater for the benefit of the lands and
inhabitants within their respective boundaries; and
WHEREAS, it would be in the best interest of each of the parties hereto, each 0f which is
located within the Half Moon Bay Basin, and the lands and inhabitants within the boundaries of
said parties, for a single representative organization t0 be established, composed 0f elected
officials from said panics, which would be capable of developing a joint waste collection,
transmission, chatmentflisposal and management plan (hérein “Wastewater plan”) for the Half
Moon Bay Basin, ahd capable of acquiring, oonstmcting, maintaining, managing, operating and
controlling facilities for the joint collection, transmission, treatment and disposal of wastewater
Within said basin; and
WHEREAS, it has been determined thaI an areawide wastewater plan for said basin and
the providing of facilities for joint collection, uansmission, treatment and disposal of wastewater
within said basin may best be undertaken and achieved by cooperative action of the parties
hereto and in the manner provided for in this agreement; and
I. DEFINITIONS
Unless the context otherwise r'equircs, for the purposes of this agreement, the following
words shall have the following meanings:
(a) “The Authority” 0r “SAM" means the Authority fonned pursuant to this
agreement.
'
consolidated and updated as of October 10, 2011 (includes revisions resulting from amehdments 1 through 8 to the
original agreement)
(c) “Board” or “Board of Directors" means the governing body of the Authority.
(g) “Fiécal Year” means July lst t0 and including the following June 30th.
.(B) “General Budget” means the approved budget applicable to the expenses of
administration of the Authority and operation and maintenance of the facilities.
(i)“Half M0011 Bay Basin” means hydrographio sub~unit #9 as defined in the ABAG
Employment and Land Use Projections, San Francisco Bay Region,
report entitled “Population,
1970—2000”; generally the lands between Tunitas Creek and Devil’s Slide bounded on the
~
(j)
“Member Agency" or “Party” means either Half Moon Bay, Granada or Montara.
“Member Agencies” or “Parties” means Half Mooa Bay, GIanada and Montara.
(1)
‘Troject” may include a study, a plan, or a facility.
(m) “Project Budget” means the approved budget applicable to a particular study, plan
0r facility.
(A) Authorig: Created: There is hereby created a public entity to be known as the
“SEWER AUTHORITY MID-COASTSIDE”. The Authority
formed by this Agreement
is
pursuant to the provisions of Titlevl, Division 7, Chapter 5 of the Government Code of the State
of California The Authority shall be a public entity separate from the parties hereto.
(B) Purgose of the Aggeement. The parties hereto have in common the power t0 plan
for, acquire, construct, reconstruct, alter, enlarge, replace, repair, maintain, manage, operate and
control facilities for the collection, transmission, treatment and disposal ofwastewater for the
benefit of the lands and inhabitants within their respective-bomdafies. The purpose of the
Agreement is to jointly exercise the forgoing common power in the manner set forth herein.
(C) Powers of the Authorigx. The Authority shall have the power, in its own name, to
do any or all of the following:
(8) to apply for and accept grants, advances and contributions under any
federal, state, or local programs for assistance in developing any of its projects;
(9) T0 establish rates, tolls, fees, rentals, or other charges in connection with
‘
(11) The Authority shall have the additional power and authority to issue
revenue bonds in accordance with the following laws:
The above powers are subject to the rcstflctions, upon the manner of exercising said
powers, set forth in the Sanitary District Act of 1923, as amended, being Sections 6400 et seq. of
the California Health and Safety Code.
(D) Boundaries. The boundary of the Authority shall be the consolidated boundaries
of the member agencies. In conjunction with the consolidated San Mateo County mid-coastside
wastewater treatment and disposal system (Plan F), being the project authorized to be undertaken
by this Authority, the service area boundaries are defined as the current corporate City limits of
the City and all lands within the Districts not zoned RM (Resource Management). Said
boundaries shall be set forth and depicted 0n Exhibit “A” as amended or supplemented from time
to time, attached hereto and by this reference made a part hereof. Ln the event of withdrawal
fi‘om Agreement by a member agency, the boundaries shall be revised to exclude the area
this
under sole jurisdiction of said withdrawing member agency.
III. ORGANIZATION
(A) Membership. The members of the Authority shall be each public entity which has
executed Agreement, or any addenda, amendment or supplement thereto, and which has not,
this
pursuant t0 the provisions hereof, withdrawn therefi'om. A list of the members shall‘be available
to each member.
(B) Desiggation of Directors. Within fifteen (15) days afier execution of this
Agreement, the member
agencies shall designate and appoint, by resolution of their respective
govemjng bodies, representatives to act as their directors on the Board. Each member agency
shall appoint two representaiives to SAM, and these six representatives shall constitute the
Authority’s full Board of Directors. Each member agency shall also appoint one alternate
director whose name shall be on file with the Board and who may assume all rights and duties of
an absent director representing the appointing member agency. Each director and alternate shall
hold office fiom the first meeting of the Board after his 0r her appointment by the governing
body which he or,she represents until a successor is selected. Directors and alternates shall serve
at the pleasure of the govprning body of the appointing member agency and may be removed at
any time, with or without cause at the sole discretion of said member agency‘s governing body.
A director or alternate must be a member of the governing body of the appointing member
agency.
(C) Principal Office. The principal ofiice of the Authority shail initially be the Half
Moon Bay City Hall. The Board is hereby granted full power and authority to change said
principal oflice from one location to another‘within its boundary. Any change shallbe noted by
the Secretary under this Section but shall not be considered an amendment t0 this Agreement.
(D) Meetings. The Board shall meet at the principal office of the Authority or at such
other place as be designated by the Board The time and place of regular meetings of the
may
Board shall be determined by resolution adopted by the Board. A
copy of such resolution shall
be fumished each party hergto. Regular, adjourned and special meetings shall be called and
to
held in the manner as provided in Chapter 9, Part 1, Division 2, Title 5 0f the Government Code
of the State of California (Section S4950 et seq).
(B) Quorum. That number of Board members representing a simple majority of the
votes on the Board shall conStitute a quorum for the transaction of business, except that less than
a quorum may adjourn fiom time to time.
(F) Powers of the Board and Limitations Thereon. All Aof the powers and authority 0f
SAM shall be exercised by the Board subject to the following conditions and limitations:
(1) eaEh directo; from Half Moon Bay shall be entitled to two ?otes; each
director from Montara and Granada shall be entitled t0 one vote;
directors may, by five (5) affinnative votes, adopt any motion and take any other action
they deem appropriate to carry forward the objectives of the Authority. Passage of any
resolution shall require six (6) affirmative votes;
final approval of any general budget or project budget shall require the
(3)
consent of every member agency or participating member agency as provided in
Section (G) hereof, and Article V, Sections (A), (B), and (C), thereof;
(G) Consent bf Members. In any matter prescribed herein t0 require the consent of
member agencies, said consent shall be evidenced by a cezfificd copy of the resolution of the
governing body of such member agency filed with the Authority.
(H) Officers. The Authority have four oificers; Chair, Vice Chair, Secretary
shall .
and Treasurer. The directors of 1116 Board from the Board these four officers who
shall select
-shaIl hold ofiice for a period of one year, commencing January 1 of each year; provided that, in
the everit that a mémber agency removes from the Board a director serving as an officer, the
Board shall appoint another director to fill the vacant office for the remainder of that year.
(1) The Chair shall preside at the meetings of-the Board. The Chair’s duties
shall be to call meetings to order, adjourn meetings, announce the business before the
Board in the order in which it is 10 be acted upon, recognize directors and npn—directors
entitled to the floor, put t0 vote all questions moved and seconded, announce results O_f
5
SFI ”6273315 30050/0
Ir
votes, maintain the rules 0f order, execute documents on behalf of the Board when duly
approved for action, and carry out the other duties set forth in the bylaws. The Chair
shali be entitled to exercise his' or her full voting rights on all questions before the Board
'
and need not relinquish the chair to discuss a question before the Board.
(2) A Vice Chair shall be selected and hold office m the same manner as the
Chair and in the absence of the Chair shall preside and hold the same powers as if he or
she were the Chair.
(3)
‘
'A Secretary shall be selected fiom the Board by its directors.
(I) m.
General staff functions to serve the administrative needs of the Authority
be provided by employees of the member agencies, 'and credited towards said
shall initially
respectiVe member agencies‘ financial contxibutions 0r obligations as provided in Article V,
Section (D) below. The" Etaffpositions shall be as follows:
(1) Manager. The authority shall employ or contract for the services 0f a
manager who may or may not be a staff member of one of the member agencies. The
manager shall answer to the Board and be responsible for all administrative needs of the
Authority. The manager shall also be responsible for the general executiorx of all
Authority policies as set by the Board.
(2) Treasurer. The Treasurer shall be the depositary and have custody of a1]
(a) Receive and receipt for all money of the Authority and place it in
the treasury of the Treasurer to the credit of the Authority.
(b) Be responsible upon his o'r her official bond for the safekeeping
and disbursement 0f all Authority money so held by the Treasurer.
(c) Pay, when due, out of money of the Authority so held by the
Treasurer, all sums payable on outstanding bonds and coupons of the Authority.
(d) Pay any other sums due from the Authority from Authority money,
or any portion thereof, only upon checks drawn against the Authority, duly
authon'zed by the Board and executed by two directors or by one director and the
manager.
(e) Verify and report in writing on the first day of July, October,
January and April of each year, to the Authority, and to each 0f the member
{3) Others. The Board may employ or contract for the services of individuals
or other staff positions as necessary t0 assist in the administration and execution 0f the
‘
(J)Charges for Services. Charges for the services of the manager, the treasurer, and
other administrative 0r operating personnel supplied by any member agency shall be jointly
agreed upon with the member agency 0r member agencies furnishing the services in advance of
'
Officers, Employees and Agents. Any officer, employee or agent of the Authority
(K)
may also be an officer, employee, or agent of any member agency. The appointment or
employment by the Board of such a person shall constitute a determination that the two positions
are compatible. Notwithstanding the above, the Manager and the Treasurer, shall not. be
employees of the same gember agency without the unanimous consent of the complete Boaxd of
Directors.
A11 privileges and immunities from liability, all exemptions fromlaws, ordinanc'es and
rules, and pension, relief, disability, workers’ compensation, and other benefits which apply
all
to the activities of officers, agents, 0r employ'ees of a member agency when performing their
respective functions shall apply to them to the same degree and extent while engaged in the
performance of any of the functions and other duties under this agreement.
None of the officers, agents, or employees directly employed by the Authority shall be
deemed by reason of their employment by the Authority, to be employed by any member agency
or to be subject to any of the requirements of any member agency.
(L) Accounting and Audits. There shall be a strict accountability 6f all Authority
funds and report of all receipts and disbursements in compliance with Article I, Chapter 5,
Division 7, Titlel of the Government Code (Section 6500 et seq.). The Board, acting as
controller, shall centract with a certified public accountant or public accountants to make an
annual audit of the accounts and records of the Authority. In each case the minimum
requirements of the audit shall be those prescribed by the State Controller for special districts
under Section 26909 of the Government Qode and shall conform to generally accepted auditing
standards. The records and accounts of the Authority shall be audited annually,.and a report
thereof shall be filed as a public record with the Authority and with each of its member agencies
and the San MaIeo County Auditor, not later than six (6) months following the end of the fiscal
year under examination. Any costs 0f the audit, including contracts with or employment of, a
certified public accountant or public accountants shall be bome by the Authority and shall be
charged against its general fund.
(M) Access to Propefl. The manager and treasuIer are hereby designated as the
persons who have charge 0f, handle, and have access to the property of-the Authority. Each such
(N) Minutes. The secretary of the Authority shall cause to be kept minutes of regular,
adjourned regular and special meetings 0f the Board, and shall cause a copy 0f the minutes to be
forwarded to each director and to each of the member agencies hereto within a reasonable time
which shall be fixed by the Board.
(O) Eggs. The Board may adopt from time to time such rules and regulations for the
conduct of afi‘airs as may be required. Parliamentary rules and procedures shall be those
its
prescribed in Robert’s Rules of Order. Any documents required t0 be executed by the Authority
shall be signed by the Chair and countersigned by the Secretary, except that the Board may, by
resolution, authorize other ofiicers or employees t0 sign 0n behalf of the Authority.
(A) Planning Policy. ln keeping with the purpose of this Agreement, the member
agencies hereby authorize and direct the Board to undertake such studies and planning relative to
the combined service 0f the member agencies as may be necessary, to provide for the joint
ar'e'as
collection, transmission, treatment, and disposal of sewage 0f each of the member agencies, The
specific objective of such studies shall be to deve10p regional solutions to the wastewatcr
treahnent and management problems which will be in accordance with all applicable federal,
state and regional water quality control requirements, consistent with demographic studies
applicable within the jurisdiction of Authority, and planned so as not t0 result in unreasonable
financial burdens 0n the member agencies whatever course future development of the area might
take. It is understood by the parties that this agreement shall not affect the rights 0r pOWers 0f
The studies may include proposals .for Construction ofjoint coliection systems, trunk and
interceptor lines, tr’eatment plans (sic), and disposal systems. The studies may also include
proposals to be used in coujunction with facilities not within the Authority’s jurisdiction. Any
of planning, design, construction, maintenance and operation 0f
studies shall consider all phases
facilities proposed by the Authority, and allocation to benefited member agencies of capital,
(B) Present Project. The Present Project shall be a secondary wastewater Ireatment
and disposal system, divided into four components, to service the combined needs of the member
agencies to the year 2000.
(l) Phase I
'
(ii) An
ocean outfall pipeline and attendant pumping facilities,
discharging the combined treated efiluents fi'om the three member
agencies’ treamlent systems into the ocean adjacent to the existing but
presently inoperative Half Moon Bay outfall line, shared one-half (1/2) by
Haif Moon Bay, one-quarter (V4) by Montara and one-quafier (1/4) by
Granada. - -
Carry secondarily treated effluent from the treatment plant at the Half
Moon Bay site south to the golf course and adjacent agricuItuIal and
floricultural lands, and being solely assigned to Half Moon Bay.
(2) Phase II
10
SFI 1562788v5 30050/0
(b) Determination of Phase II Treatment Facilities. The determination
0f the Phase II treatment facilities and their capacity, together with the allocation
of said capacity and all conSIIuction costs and operation and maintenance
expenses pertaining thereto, shall be made within the time schedule established in
the aforementioned preliminary injunction, or as said injunction may be amended
or modified, and aficr consideration 0f the following:
(ii) The Land Use Plan portions of the Local Coastal Programs
applicable to the respective member agencies and an analysis of the
member agencies’ respective sewer service needs pertinent thereto, in
relation t0 the objectives of the Present Project.
(3) Funding.
Only those components, referred to above, which are fundable under the
Clean Water Grant Program, shall be constructed by the Authority.
11
SF] 156273815 30050/0
shalloccur with respect to the reclamatibn component. The expenses of operation
and maintenance of the various components of the Present Project under the
separate treatment plant concept shall be borne solely by those member agencies
using said components and shall be shared in a manner based on flows into the
components.
In the 4cvent the single treatment plant concept is selected as the fourth
component under Phase II, it is the intent of the Authority t0 further consolidate
sewer functions within the service areas of the three member agencies, and t0
'
establish a uniform system of sewer service charges, levied throughout the entire
jurisdiction of the Authority, with which to pay expenses of operations and
maintenance.
any mcmBer agency for any of said agency’s facilities so integrated. The credit is
to be the lesser of the member agency’s actual local costs, or replacement cost,
less straight—line depreciation. For purposes hereof, replacement cost means the
total replacement cost as distinguished from the total replacement cost less any
gant which~may be Such credit shall be added to the total
available therefor.
local share cost of the applicable component into which the existing facilities are
integrated, before allocation of local share cbmponcnt costs is made to reSpcctive
member agencies.
The member agencies agree t0 complete the Present Project n0 lalcr than
July 1, 1983, in accordance with the requirements of The Clean Water Grant
Program, in a manner that meets the stated objectivesof the Present Project, and
in a mannerfihat makes maximum utilization of the immediately available funding
opportunities under the Program.
12
SF! 1562788v5 30050/0
L/
The industrial waste standards and regulations shall authorize the issuance
of industrial waste discharge permits thereunder and provide that such permits
will be issued by the Authority, shall authorize field inspectors or other
employees of the Authority t0 act as enforcement agents of the member agency
with the power t0 inspect and issue notices for Violations of the standards and
regulations, and shall confer upon, and empower the Authority to seek civil
injunctive relief or criminal prosecution, 0r both, for noncompliance with, or
violation 0f, such standards and regulations by any discharger.
(A) General Budget. Within sixty (60) days after the first meeting of the Board, a
general budget shall be prepared for the balance of the fiscal year. Thereafter at or prior to each
March meeting of the Bliard, a general budget shall be prepared for the ensuing fiscal year. The
initial budget and each succeeding general budget shall include the following:
(3) all revenues accruing to the Authority, including the assessments allocated
among the member agencies to cover the general administrative, operating and
maintenance expenditures; -
consent of all'membcr agencies. Final approval shall be made by the Board, within thirty
(30) days after preparation of the initial general budget and by July Ist following
preparation of each succeeding budget. A copy of the genéral budget shall be filed with
éach member agency.
(5) Each member agency hereby agrees to include in each annual budget
approved by the governing body of such member agency amounts estimated t0 be
sufi'lcient to pay all such charges and to pay to the Authority within thirty days of receipt
of a statement 0f the member
agency’s allocated share of the actual general budget
expenses for the billing period as determined by the Board. The Authority is hereby
‘ 13
sn 156mm; zooso/o
authorized to take any 0r actions necessary and permitted by law to enforce the
all legal
collection of such charges or any other compliance with this agreement, including, but
not limited to, actions or proceedings in mandamus to require each member agency to
include the amounts estimated to be necessary in each such estimated annual budget, 0r
to collect such charges from the taxpayers, landowners, 0r users of any of the facilities of
the Authority.
(B) Project Budgets. In addition to the General Budget, the Board shall, prior to its
initiation of a project, approve the project in concept and have a project budget prepared. Bach
Project Budget may include the following: _
(4) the allocation among the participating member agencies 0f the total project.
costs including but. not necessarily limited to administration planning, design,
construction and aperation and maintenance,
(5) any revenues accruing to the Authority for the project from whatever
source. ‘
Project Budget has been approved by the governing body of each of the proposed participating
member agencies. Consent of the participating member agencies shall be required within a
reasonable length of time, said time to be determined by the Board when the Project Budget is
prepared. Upon approval by all of the participating member agencies, the Board shall adopt the
Project Budget and file a copy of same with each of the participating member agencies.
'
(1) General Budget. If a general budget fails to attain the approval required
by Section (A) hereof, the director(s) of consenting member agencies may treat the
refilsalnfiadissenfingmembeg agency t0 approve the budget as a request for withdrawal
from the Authority and the remaining members may thereafier upon giving the non~
consenting member agency thirty (30) days notice, proceed with the adoption of a revised
budget and the non-consenting member agency shall not be obligated for future debts of
the Authority nor shall it receive any benefits therefrom.
member agency
Pertaining to past debt obligations, however, the non-consenting
shall continue to be obligated for the operation and maintenance costs, under the original
allocation fonnula, of any project in which it continues to derive benefits.
l4
SFI 1562788v5 30050/0
(2) Project Budget. If a Project Budget fails to attain the approval required by
Section (B) hereof, the director(s) of consenting participating member agencies may treat
the refusal of a dissenting member agency t0 approve the budget as a request for
withdrawal from the project concerned, but not from the Authority, and the remaining
participating member agencies may thereafier, upon giving the non-consenting member
agency thirty (30) days notice, proceed with the adoption of a revised budget and the non-
conscnting member agency shall not be obligated for future debts of the project
concerned nor shall it receive any benefits therefrom. The cost of preparing the Project
Budget shall be divided among the proposed participating member agencies in proportion
to allocation of costs to said members 1n the current general budget.
(I) contributions from a member agency’s treasury may {ac made for the
puxpose set forth in the Agreement;
(2) payments of public funds 0f a member agency may be made to defray the
cost of such purpgse;
(3) each 0f the member agencies may make advances 0f public funds, to be
repaid as set forth in the Agreement;
(5) the member agencies may exchange services Without payment of any
consideration other than such services.
(E) Expenditures for the Approved Budgfl. A11 expenditures within the designations
and limitations of approved general and pfoject budgets shall be made on the authorization of a
majority of the directors present at a meeting during which budget expenditures are approved.
No expenditures in excess of those budgeted shall be made without the unanimous consent and
approval of all of the directors representing the member agencies aflected by the budget under
consideration
Afier completion of the purpose for which funds were provided to the Authon‘ty
by a member agency, any surplus money shall be returned to that member agency in proportion
to the funds (excluding interest) so provided.
15
SF] |562783v5 3005M
(G) Reimbursement of Funds. Grant 'funds receiVed by the Authority from any
federal, state or local agency to pay for budgeted expenditures for which the Authority has
received monies from a member agency shall be remitted to that member based upon the ratio 0f
the member agency’s advance to the total cost of the project for which the Authority has receiVed
the grant.
(A) Project Members. The directors representing those members determined by the
Board to be participating members of a project shall, upon consent to the proposed project by the
participating members, constitute a subcommittee of the Board referred t0 as the “
Project Committee.” All actions by a project committee shall be deemed actions of the Authority
and shall be taken in the namelof the Authority; hOWever, only the participating members of a
project shall have rights and obligations in said project as herein provided.
by the Authority.
(A) Maintenance and Operation of Facilities. The Board shall determine, prior to the
construction of any project, whether 0r not the Authority shall maintain and/or operate such
facilities. If the Authority is t0 maintain and/or Operate such facilities, it shall d0 so in an
efiicient and economical manner, and in a manner not detrimental to the member agencies. It is
the intent of the parties that any project may be maintained and operated in the name of the
Authority. 1f it is determined that one 0r more of the member agencies shall maintain and/or
operate said facilities, said member agencies shall by written agreement consent thereto prior to
the construction thereof.
16
SF! [562788v‘5 3005M
0
with the consolidated San Mateo County mid-coastside wastewater treatment and disposal
system (Plan F), being, the project authorized to be undertaken by this Authority, .3 mgd
treatment plant capacity shall be reserved, for the first ten years 0f the twenty—year design 0f said
project, for recreational flows. In addition to flows from public recreational fabilities such as
parks, beaches, marinas, and marine reserves, the term ‘recreational’ includes recreationally
related pommerciaj facilities such as restaurants, motels, golf courses, and stables. Said
recreational capacity shall be allocated t0 the member agencies as they may determine.
(B) DistributiOn of Assets and TerminatiOn of the Authorig. To the extent that any
funds (or property in lieu of funds) received fi'om any member agency are used for the
constmction of facilities, the same shali be allocated annually on the books of the Authority to
the credit of said contributing member agency. Upon termination 0r dissolution of the Authority
herein created, the facilities, and any fiJnds, in possession of the Authority at such time shall be
or sold, and the proceeds thereof distributed to the member agencies at the
distributed in kind
time oftermination and in proportion as their interests appear on the books of the Authority.
(C) Liabilities. Any liability incurred by the Authority during the course of its
existence shall be discharged by payments hereby agreed t0 be made to the Authon'ty by each of
the parfies hereto in preportion. to their contribution or approved participation in facilities of the
Authority for which the liability is attributable. Except as hereinabove provided, the debts,
and obligations of the Authority shall be the debts, liabilities or obligations of the
liabilities,
17
SFI 1562788‘5 3005010
l)
the Board who are representatives of the member Agency or Agencies who are in violation of the
discharge requirements) may elect to do either one or both of the following:
(a) Have undertaken at the cost and expense 0f the violating member
agency or agencies the construction of such additional treatment facilities as are
necessary to meet said discharge requirements.
Nothing in this Section shall preclude one or more agencies fiom providing additional
levels of treatment to insure meeting waste discharge requirements in the combined effluent. In
the event that one or more member agencies are obligated to provide additional levels of
treatment to meet waste discharge requirements for the combined effluent, all member agencies
requin'ng the additional levels 0f treatment shall participate in the costs of such treatment based
on their relative contribution of waste characteristics to be treated and the costs 0f providing such
'
treafinent.
Should any diSputc or controversy arise ~in connection with the books, records or accounts
of any party to this Agreement or in connection with the acquisition, construction, maintenance,
operation, repair, reconstruction or enlargement of the Joint System or in connection with any of
the affairs or operation thereof, or the execution of the'term of this Agreement, the gOVerning
bodies 9f the parties to this Agreement may elect to arbitrate the dispute or contoversy in
accordance with the rules of the American Arbitration Association or by any other mutually
~
X. MISCELLANEOUS PROVISIONS
(A) Duration. The Authority shall continue until this Agreement is rescinded as
herein provided.
(B) Rescission and Termihation. This Agreement may be rescinded and the Authority
terminated by written agreement'of all member agencies. Upon termination of the Authority, its
assets and liabilities shall be divided among the then member agencies in proportion to their then
ownership interests.
(C) Withdrawal. Any member agency may withdraw from the Authority at any time
upon giving each of the other member agencies one hundred and twenty (120) days written
notice prior to the end of the fiscal year; provided, however, in the event. the withdrawing
member agency has any rights in any facility of the Authority or obligations to the Authority,
said member agency cannot sell, lease or transfer said rights or be relieved of its obligations,
without the execution of a written agreement executed by it and another member agency. The
term “obligations” as used herein shall include, but not be limited to, bonded indebtedness and
18
SF] l562788v5 3005M
42
capital replacement costs. Upon termination, a withdrawn member agency will be treated like ail
the other member agencies in regard t0 the provisions 0f Article VIII (B) hereof.
(F) Filing with the SecretarLof State.The Secretary of the Authority shall file with
the Secretary of State a notice in accordance with Government Code Section 6503.5, and shall
file notices, as appmpriate, in accordance With Government Code Section 5305 1 .
19
SF! |S62188v5 JOOSDID
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1N WITNESS WHEREOF, the parties hereto have caused these presents to be executed
on the day and year first above written.
By 5/ Lloyd 'I‘.
Cardoni
Mayor
Attest:
By s/ Barbara K. Driscoll
Deputy City Clerk
seal)
V
By s/ L. Paul Leger
President Pro Temp)
Attest:
By s/ Susan C. Muth
Secretary Pro Temp)
seal)
By s/ William L. Sawrcv
President
Attest:
By s/ Latrv Pollard
Secretary
seal)
20
SFl 1562788v5 3005010
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Staff Report
SUBJECT: Authorize the General Manager to Expend Funds from the SAM
Operating Reserve to Continue Operating SAM Until the JPA
General Budget for FY 2017/18 is Approved by the SAM Board of
Directors
Staff Recommendation
Staff recommends that me Board of Directors authorize the General Manager to expend
funds from the SAM Operating Reserve to continue operating SAM until the JPA
General Budget for FY 2017/18 is approved by the SAM Board of Directors.
Fiscal lmgact
The monthly cost of operating SAM is $434,045, which is allocated as follows: $224,050
Operations, and Maintenance “The goals are no spills, safety, environmental protection,
"
reliabiliru and long—term cost effectiveness.
the Budget be prepared and presented to the Board no later than the March meeting of
the Board. The draft General Budget for FY 2017/18 was discussed at the March 2T,
2017, Board meeting and was submitted to the member agencies on March 28, 2017.
for feedback.
The proposed General Budget for FY 2017MB was presented to the Board at the April
10, 201 7, Board meeting for authorization t0 submit it to the member agencies. Based
on Board direction, the budget was split into two separate budgets (JPA and COS) and
submitted to the member agencies on April 1 3, 2017. After receiving feedback from the
member agency managers, the Board directed staff to meet with the member agency
managers and reduce the budgets and impacts on member agency assessments. Staff
discussed the budgets with the member agency managers on May 18. May 19, and
June 1, 201 7.
The revised budgets were presented to the Board on June 12, 2017, and the Board
authorized the General Manager to submit them member agencies for review and
to the
approval. The JEPA requires that the Budget be approved by the member agencies
before the Board makes final approval. The final approval of the Budget is to occur no
later than July 15‘ of each year. On June 15, 2017, the GCSD Board approved both
budgets Has
presented. As of June 22, the Half Moon Bay City Council and the MWSD
Board had not discussed the revised budgets.
It is necessary for SAM to continue operating until such time that the member agencies
and the Board approve the Budget. SAM has no revenues to pay for daily operations
aside from the monthly member agency assessments. Resolution 2-2013 established
the SAM Reserve The objective of the Operating Reserve is to “ensure that
Policy.
adequate cash is available when needed to pay SAM's normal and recurring operating
costs." The target amount of the Operating Reserve is an "operating and cash flow
reserve equal to two months of the fiscal year budgeted operating expenses.” Two
months of the adopted operating expenses for FY 201 6/1 7 is $700,696.
Staff asks that the Board authorize me General Manager to expend funds from the SAM
Operating Reserve and to continue operating SAM until the JPA General Budget for FY
2017/18 is approved by the SAM Board of Directors.
Suggorting Documents
Attachment A: Resolution 8-2017
Attachment B: Resolution 2-2013 SAM Reserve Policy
The Joint Exercise of Powers Agreement (JEPA) describes the process and
requirements for adopting the annual general budget.
The JEPA requires that the general budget be prepared and presented to the
Board no later than the March meeting ofthe Board. The General Budget for FY
2017/18 (Budget) was presented to the Board at the March 27', 201 7. meeting. At the
April 10, 2017. meeting the Board authorized the General Manager to submit the
Budget to the member agencies for their approval.
At the May 8 and May 22, 2017. meetings, the Board directed the General
Manager to discuss the Budget with the member agency managers and engineers to
come to an agreement on the Budget, specifically the infrastructure division.
The revised Budgetwas prepared based on feedback from the member agency
managers and engineers and was presented to the Board at the June 12, 2017,
meeting. The Board authorized the General Manager to submit the revised Budget to
the member agencies for their approval.
It is necessary for SAM to continue operating until such time that the member
agencies and the Board approve the Budget. SAM has no revenues to pay for daily
69
.I
5‘ '_
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Therefore. the Board of Directors for the Sewer Authority Mid-Coastside, San
Mateo County, authorizes the General Manager to expend funds from the Sewer
Authority Mid-Coastside Operating Reserve and to continue operating SAM until the
JPA General Budget for FY 2017/1 8 is approved by the SAM Board of Directors.
**********
I CERTIFY that this resolution was duly adopted by the Board of Directors of the
Sewer Authority Mid—Coastside, San Mateo County, California. at a regular meeting held
on the 26th day of June 2017, by the following vote:
AYES:
NOES:
ABSENT:
70
EXHIBITD
Board of Directors Meeting Agenda
Regular Board Meeting 7:00 PM, Monday, June 26, 201 7
SAM Administration Building. 1000 N. Cabrillo Highway. Half Moon Bay, CA 94019
CALL T0 ORDER
A. Roll Call
CONVENE IN CLOSED SESSION (Items discussed in Closed Session comply with the
Ralph M. Brown Act.)
(Consent items are considered routine and will be approved oradopted by one vote
unless a request for removal for discussion or explanation is received from the public or
Board.)
C. Receive Monthly Financial Report for Period Ending May 31, 2017 (Attachment)
OLD BUSINESS (The Board will discuss, seek public input, and possibly take action on
B. Discuss Day and Time of Regular Board Meetings as Required by Resolution 10-2016
and Adopt Appropriate Resolution (Attachment)
D. Discuss and Consider Adopting the Proposed Media Relations Policy (Attachment)
NEW BUSINESS (The Bo’ard will discuss, seek public input, and possibiy take action on
the following items.)
w) l]
A. Adopt a Resolution Authorizing the General Manager to Expend Funds from the SAM
Operating Reserve to Continue Operating SAM Until the JPA General Budget for FY
201 7/18 is Approved by the SAM Board of Directors (Attachment)
Collection Services (CCS) to all Three Member Agencies at the 2016/1 7 Service
Levels and Bill Said Agencies Based on the Adopted 201 6/17 CCS Budget Fee
Schedule Until the Proposed Revised CCS Budget for FY 201 7/1 8 is Approved by the
SAM Bdard of Directors (Attachment)
1 0. ATTORNEY’S REPORTS
13. ADJOURNMENT
o Upcoming Board Meetings: July 10 and July 24, 2017
The meeting wilt end by 9:00 pm. unless extended by board vote.
This agenda contains a brief description of each item to be considered. Those wishing to
address the Board on any matter not listed on the Agenda. but within the jurisdiction of the
Board, may do so during the Public Comment section ofthe Agenda and will have a maximum
of three minutes to discuss their item. Those wishing to speak on a matter listed on the
Agenda will be called forward at the appropriate time.
Any writing that is a public record and relates to an agenda item for an open session of a
regular meeting. that is distributed to the Board less than 72 hours prior to the meeting, is
available for public inspection, during normal business hours. at the District address, listed
above.
Board meetings are accessible to people with disabilities. Upon request, this agenda will be
made available in appropriate alternative formats to persons with a disability. [n compliance
with the Americans with Disabilities Act, specie! assistance for participation in this meeting can
be obtained by contacting Kathy Matthews at (650) 726-0124. Request for a disability-related
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CM 01a .
A'rroRNEY 0R PARTY wanUTAITORNEY (Name szamsarmnba: ended ass) FOR coum' USE ONLY
MICHAEL G. COLANTUONO (SEN. 143551)
PAMELA K. GRAHAM (SBN 216309
Cofantuono, Highsmith 8: Whafley.P
420 Sierra College Drive, Suite 140
Grass
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95945-5091
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(530) 432~7357 m: um (530) 43 g3};
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supauon count 0? CAUFORN cou 0F an ateo w co M ‘3
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Filed with first
(Cal.
appearance by defendant
Rules «Court, rule 3.402)
Items 1-6 below mus! be completed (see instrucfl'cns on page
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2),
9 2 P’
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1. Check one box below for the case type that best describes this use: ®
Complex
Auto Tort
E Auto (22) D
Contract
--
V
E
E construction defect (1o)
regulation (03)
U
[j
Asbesios (04)
fiabmmzn
Insurance coverage
omercomract (37)
(’18)
-
E
C3
Mass tort (4o)
Securities litigation (28)
Enforcement of Judgment
provisionally comp1ex
D
a
Businefi ton/unfair business
D
D moo (27)
Other complain: (norspea‘rred above) (42)
E tmeuectua:
Professlonai negiigence (25)
[j Other non-PHPD/WD
Judicial
C] Asset
Review
E Miscellaneous Clvil Petition
E
Employment
Wrongful termman‘on [36)
tort (35)
E]
m wm
forfsiture (05)
of mandate (oz)
award (1 1) D Pattnershlp and oorporalg governance (21)
Omar pefifion (no: specified above) (4a)
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.
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2. This case is is not comprex under mle 3.400 oftha Caiifornia Rules of Court. If the case is complex, markthe .
facto
a.
b.‘
U
requiring exceptional judicial
Large number of separately represented parties
Extensive motion practice raising difficult or novel
management
d.
e.
D
E]
Large number ofwitnesses
‘Coordlnation withyelated actions pending in one or more courts
a federal com
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D EE
in in
.
3.
c Substantial amount of documentary evidence
Remedies sought (check all that apply): a. monetary b
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CI
Substanllal posfludgment jutficiaf supervision
nonmonemry; declaratory or injunctrve relief c. D punitrve
5. This
.6 If
case
there are any
E - ls
knovm related
is not a C?ass action suit.
@593. me and serve a notice of retated case (You may use form CM—O15 )
Date: July 11 2017
MICHAEL G COLANTUONO (SEN. 143551) OWEN /AN§Et\\
{TYPE OR PRJHTNAME] (SIGNATURE 0F Pm OR ATFOW FOR PARTY]
NOTICE
. Plaintiff cover sheet with the first paper filed'm the action or proceeding (except small claims oases or cases filed
mustfile this
under the Probate Code, Family Code. or Welfare and Institutions Code). (Cal Rules of Court. rule 3. 220. } Faflure to file may result
in sanctions.
. Furs this cover sheet In addition to any cover sheet required by low! court rule
. lf this case ls complex under rule 3. 400 et seq. ofthe Canomia Rules of Court. you must serve a copy of this cover sheet on all
other parties to tha action or proceeding.
be used
or a complex case. this cover sheet
rgb—purposes Pan‘—
,
o Unlws this'[s a collections case under rule 3. 740 will forstatistical on1y1
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191 North Firstsr., San Jose’, CA 95113
PLAINTIFF (the person suing): Within 60 days after filing the lawsuit, you must serve each Defendant with the Complaint,
Summons, an Alternative Dispute Resolution (ADR) Information Sheer, and a copy of this Civii Lawsuit Notice, and you must file
written proof of such service.
DEFENDANT (The person sued): You must do each of the following to protect your rights:
1. You must file a written response to the Complaint, using the proper legal form or format, in the Clerk's Office of the
Court, within 30 days of the date you were served with the Summons and Complaint;
2. You must serve by mail a copy of your written response 0n the Plaintiff‘s attorney 0r 0n the Plaintiff if Plaintiff has n0
attorney (to “serve by mail" means to have an adult other than yourself mail a copy); and
3. You must attend the first Case Management Conference.
Warning: lf you, as the Defendant, do not follow these instructions, you may automatically lose this case.
RULES AND FORMS: You must follow the California Rules 0f Court and the Superior Court of California, County of Santa Clara
Local Civil RuIes and use proper forms. You can obtain legal information, view the rules and receive foms, free of charge, from
the Self—Help Center at 201 North First Street, San José (408-882-2900 x-2926).
-
State Rules and Judicial Council Forms: www.courts.ca.qov/forms.htm and www.courts.ca.qov/rules.htm
I Local Rules and Forms: www.scscourt.org
CASE MANAGEMENT CONFERENCE {CMC}: You must meet with the other patties and discuss the case, in person or by
telephone, at least 30 calendar days before the CMC. You must also fill out, file and serve a Case Management Statement
(Judicial Council form CM-1 10) at least 15 caiendar days before the CMC.
You or your attorney must appear at the CMC. You may ask to appear by telephone - see Local Civil Rule 8.
The next CMC is scheduled for: (Completed by party if the 15‘ CMC was continued or has passed)
ALTERNATIVE DISPUTE RESOLUTION (ADR): If all parties ADR Stipulation Form (local
have appeared and filed a completed
form CV-5008) at least 15 days before the CMC, the Court will cancel the CMC and mail notice of an ADR Status Conference.
Visit the Court’s website at www.scscourt.org or call the ADR Administrator (408-882-2100 x-2530} for a fist of ADR providers and
WARNING: Sanctions may be imposed If you do not follow the California Rules of Court or the Local Rules of Cburt.