BOARD AGENDA MEMORANDUM
SUBJECT:Title
Denial of December 30, 2021 Claim by Great Oaks Water Company (Great Oaks) Against the Santa Clara Valley Water District (Valley Water) for Refund of Groundwater Production Charges.
End
RECOMMENDATION:Recommendation
Deny the Great Oaks’ Claim.
Body
SUMMARY:
Great Oaks presented a written claim (Attachment 1) on December 30, 2021 demanding from Valley Water a refund of groundwater production charges paid from July 1, 2021 through June 30, 2022, plus interest. The claim does not specifically identify the amount Great Oaks seeks to be refunded.
We recommend that Valley Water reject Great Oaks’ claim in its entirety.
This claim is the most recent in a line of similar claims seeking a refund of groundwater production charges that Great Oaks has submitted each year since 2005. Valley Water has denied all of Great Oaks’ previous claims, and Great Oaks has filed a lawsuit following each claim denial from 2005 through 2018. There are currently fourteen pending lawsuits in which Great Oaks seeks a refund of paid groundwater charges.
Great Oaks’ most recent claim is in line with allegations contained in its previous claims, and asserts:
a. To the extent any the groundwater production charges paid by Great Oaks are assessments on real property, Great Oaks is entitled to a refund of those charges because they were not adopted by Valley Water in compliance with the procedural and substantive requirements of the California Constitution governing assessments.
b. To the extent any the groundwater production charges paid by Great Oaks are considered taxes, Great Oaks is entitled to a refund of those charges because they were not adopted by Valley Water in compliance with the procedural and substantive requirements of the California Constitution governing taxes.
c. That the groundwater production charges are governed by Proposition 26 (Article XIII C of the California Constitution) and that Valley Water failed to comply with the procedural and substantive requirements of Proposition 26 in regard to the charges.
d. That Valley Water has violated the its District Act by collecting groundwater production charges to fund activities that the District Act allegedly does not authorize Valley Water to fund using such charges or that was more than necessary to cover the reasonable costs of the activities for which the charges were levied.
Great Oaks’ previous lawsuits against Valley Water were stayed while the first or “lead” case filed by Great Oaks, challenging Valley Water’s 2005-06 groundwater production charges, was litigated. That first case led to a decision by the Sixth District Court of Appeal in favor of Valley Water that became final on February 20, 2019, after the California Supreme Court denied Great Oaks’ latest petition for review.
Consistent with this history, it is our position that Valley Water’s groundwater production charges are not property-related fees, assessments, or taxes; that the groundwater production charges were adopted in compliance with the requirements of the California Constitution and the District Act; and that Valley Water has not used revenue from its groundwater production charges in a manner that violates the California Constitution or District Act. It is therefore recommended that Valley Water reject Great Oaks’ latest claim.
ENVIRONMENTAL JUSTICE IMPACT:
There is no Environmental Justice impact associated with this item.
FINANCIAL IMPACT:
There is no financial impact associated with this item.
CEQA:
The recommended action does not constitute a project under CEQA because it does not have a potential for resulting in direct or indirect physical change in the environment.
ATTACHMENTS:
Attachment 1: Claim
UNCLASSIFIED MANAGER:Manager
Anthony Fulcher, 408-630-2792