City of Saratoga v. Huff (24 Cal. App. 3d 978, 1972)

Opinion

SIMS, J.

On petition of the City of Saratoga an alternative writ of mandate was issued directed to the city clerk of that city to show cause why a peremptory writ of mandate should not issue directing him to give notice of the sale of $2,000,000 of special assessment bonds to be issued under the provisions of the Improvement Act of 1911 for an assessment for improvements to be undertaken under the Municipal Improvement Act of 1913 on certain lands of the West Valley Joint Community College District which are situated within the city. The assessment is to be secured by those lands and is to be payable over a 10-year period by the levy of a special tax pursuant to the provisions of section 6468 of the Streets and Highways Code. Respondent clerk contends that the proceedings are void for each and all of the following reasons: (1) that the community college district may not circumvent the debt limitation provision of section 40 of article XIII of the state Constitution by prevailing upon another public entity to create an assessment district, composed solely of property of the college district, for improvements to be constructed solely upon that property and to be owned, controlled and regulated by the district; (2) that the community college district may not so circumvent the maximum tax rate restriction imposed by sections 20751 and 20803 of the Education Code; and (3) that the city cannot construct improvements under section 5101 of the Streets and Highways Code on property in which it has no greater interest than that it obtained by the arrangements with the college district.

It is concluded that under the circumstances of this case the assessment violates the constitutional provision in that it creates a fixed $2,000,000 obligation incurred for the direct benefit of, not the city, but the college district, and payable over a 10-year period out of ad valorem taxes to be levied against all property within the college district; that dlthough under proper circumstances the Legislature may provide for ad valorem taxes at rates in excess of limitations which it has itself fixed, such taxes may not be imposed to pay an obligation which violates the constitutional restriction; and that since the proposed assessment is invalid, it is unnecessary to determine to what extent improvements may be constructed on land of another public entity in which the governing body ordering the improvements has merely an easement for construction. The alternative writ must be discharged, and the petition for a peremptory writ denied.

I

West Valley Joint Community College District is a community college district which embraces what is alleged to be 230 square miles of land, and includes within its boundaries the City of Saratoga, and all or a portion of seven other cities and some incorporated area, all within the County of Santa Clara. The college district owns a 143-acre parcel of real property within the City of Saratoga on which it has constructed and is operating a community college campus.

On February 18, 1971 the governing board of the college district unanimously adopted a resolution authorizing its chairman and secretary to execute a petition to the City of Saratoga for acquisitions and improvements under the heading “Saratoga Campus Recreational Facilities Assessment District.” Although, as pointed out by the city, such a petition is only an informal and nonstatutory request, without express authorization under the provisions of the Education Code or the relevant provisions of the Streets and Highways Code, it may be referred to because it demonstrates that the proceedings were taken by the city at the request of the college district, and because it sets forth succinctly the subsequent legal proceedings taken by the city council, alone, and as a contracting party with the college district.

The petition addressed to the city council reads, “The West Valley Community College District respectfully petitions the City Council of the City of Saratoga as follows: [í|] 1. That you take proceedings under the Municipal Improvement Act of 1913 and issue bonds to represent the unpaid assessments pursuant to Chapter 4.5, commencing with Section 6468, of Part 5 of Division 7 of the Streets and Highways Code, the Improvement Act of 1911, for financing the costs of the following acquisitions and improvements: . . .” There follows references to “A” the improving of four parcels on the campus as offstreet parking lots by grading and the construction thereon of pavement, curbs, gutters, storm drainage facilities, planting and landscaping facilities complete with automatic sprinkler irrigation systems, and lighting facilities, and the construction of, “B” through “M” inclusive, an athletic recreation field, a running track, a baseball field, tennis courts, handball courts, a challenge course, field game areas, a golf area, an archery field, swimming pool bleachers, a chain link fence and a pathway system. Finally “N Auxiliary” reads “The acquisition of all lands and easements and the construction of all work auxiliary to any of the above and necessary to complete the same.”

The petition continues: “2. That you assess the cost of said acquisitions and improvements, together with the incidental expenses of said proceedings, upon the lands of the West Valley Community College District [in the City of Saratoga] .... [U] 3. That said proceedings provide for the levy of an assessment against the properties of said College District, being the area benefited by said improvements and that bonds to represent said assessment be issued as provided in Section 1 hereof, in order that the amount of said College District assessment may be paid over a period of ten (10) years in the manner provided by law. [