Tuesday, February 26, 2013

MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA): Legal Argument that The County is Ineligible for Membership in the Authority According to California Government Code §1099, Agency Act, Attorney General Opinion 10-903 & MPWMD Act, § 118-203

ABSTRACT:  In the context of an anticipated California Attorney General Opinion in about one year regarding the legal issue of Incompatible Offices and the Monterey Peninsula Regional Water Authority’s appointment of Supervisor Dave Potter to the Mayor’s Water Authority Board of Directors and Governance Committee, a legal argument is presented arguing that The County is Ineligible for Membership in the Authority and Specific Disqualification of Supervisor Potter.  Supporting documents, namely Government Code §1099 is reproduced, the Monterey County Water Resources Agency Act, Water Code Appendix, Chapter 52 (the Agency Act) (Agency Act §52-71), Attorney General Opinion 10-903 and West's ANNOTATED CALIFORNIA CODES WATER CODE-APPENDIX Sections 108-1 to End (MPWMD Act, § 118-203) documents, are embedded. 

LEGAL ARGUMENT FOR INCOMPATIBLE OFFICES

The County is Ineligible for Membership in the Authority

Next, even under the best of intentions, the County is not eligible to join the Authority under the JPA. Supervisor Potter, himself, is specifically ineligible to serve on the Authority board as a representative of the County on independent grounds. These findings are based upon Government Code §1099, related conflict of interest considerations and the MPWMD Law.

The JPA envisions a future water regime that would include the Authority working with agencies such as MPWMD, the Monterey County Water Resources Agency (MCWRA), the County and others, under a comprehensive water management plan. Ultimately such an integrated county-wide water management system represents the only conceivable solution to the water crisis. But the Authority must establish itself first under the terms of its own Agreement. Its members must make several fundamental decisions specifically requiring only their own consensus. It is not until then that the Authority can effectively engage with outside agencies and private interests.

Consequently, no member of the Board of Supervisors may serve on the Authority. Again, Government Code § 1099 applies. However, more specifically, the County is conflicted out of Authority membership based upon the Board of Supervisor's role as a supernumerary to MCWRA under the Monterey County Water Resources Agency Act, Water Code Appendix, Chapter 52 (the Agency Act). In particular, Agency Act §52-71, provides:

Sec. 71. Duties of Supervisors concerning litigation.
(a) The Board of Supervisors are [sic] responsible for the initiation and the conduct of any litigation by the Agency and for the settlement of any litigation.

Consequently, the Board of Supervisors would be directly involved in litigation and settlement activities if any action were to arise between the Authority and MCWRA' In anyone's reasonable estimation, such an action must be considered fairly likely. This, under an Attorney General Opinion 10-903 analysis and general conflict of interest principles, clearly precludes the County's direct participation in Authority activities.

The JPA foresees the County as ultimately an essential ally. By its terms it provides a very effective alternative to direct County membership. Paragraph 4.20 of Article 4 states that the Authority has the power:

To organize and/or participate with local agencies to form a water management group to develop and implement an Integrated Water Management Plan pursuant to Water Code sections 10530 et seq.

This is the basis for future county-wide cooperation, which is not only desirable, but ultimately essential, to resolution of the water crisis. The JPA provides a strong basis for the success of such a program, with the mayors taking the initiative on behalf of municipal water users.

Specific Disqualification of Supervisor Potter

On narrower grounds, Supervisor Potter is prima facie ineligible to serve on the Authority board. This is because, unlike Mayor Pendergrass, Mr. Potter may not forfeit his MPWMD seat.  His unique role under the MPWMD Law is that he, or his successor, is the only supervisor eligible to serve on the MPWMD board. [MPWMD Act, § 118-203] It is impossible for him to leave the MPWMD board without removal from office as a member of the Board of Supervisors.

Source: Letter to Donald G. Freeman from THE THOMPSON LAW OFFICE, Richard Glenn, Re: Monterey Peninsula Regional Water Authority (Authority) Issues, October 11, 2012.

GOVERNMENT CODE SECTION 1099 
1099.  (a)  A public officer, including, but not limited to, an appointed or elected member of a governmental board, commission, committee, or other body, shall not simultaneously hold two public offices that are incompatible. Offices are incompatible when any of the following circumstances are present, unless simultaneous holding of the particular offices is compelled or expressly authorized by law:
   (1) Either of the offices may audit, overrule, remove members of, dismiss employees of, or exercise supervisory powers over the other office or body.
   (2)  Based on the powers and jurisdiction of the offices, there is a possibility of a significant clash of duties or loyalties between the offices.
   (3) Public policy considerations make it improper for one person to hold both offices.
   (b) When two public offices are incompatible, a public officer shall be deemed to have forfeited the first office upon acceding to the second. This provision is enforceable pursuant to Section 803 of the Code of Civil Procedure.
   (c) This section does not apply to a position of employment, including a civil service position.
   (d) This section shall not apply to a governmental body that has only advisory powers.
   (e) For purposes of paragraph (1) of subdivision (a), a member of a multimember body holds an office that may audit, overrule, remove members of, dismiss employees of, or exercise supervisory powers over another office when the body has any of these powers over the other office or over a multimember body that includes that other office.
   (f) This section codifies the common law rule prohibiting an individual from holding incompatible public offices.

AGENCY ACT
 

Monterey County Water Resources Agency Act, Water Code Appendix, Chapter 52 (the Agency Act) (Agency Act §52-71)
 52-71 Duties of Supervisors concerning litigation
Sec. 71.  Duties of Supervisors concerning litigation.
     (a) The Board of Supervisors are responsible for the initiation and the conduct of any
litigation by the Agency and for the settlement of any litigation.
     (b) The Directors or general manager shall refer all matters with respect to which litigation is  likely to the Board of Supervisors.
     (c) The chairperson of the Directors, or his or her designee, may be present during a closed  session held by the Board of Supervisors to consider matters pertaining to litigation affecting the  Agency.


ATTORNEY GENERAL OPINION NO. 10-903
 

Attorney General Opinion No. 10-903


WEST'S ANNOTATED CALIFORNIA CODES WATER CODE APPENDIX Sections 108-1 to End
 

West's ANNOTATED CALIFORNIA CODES WATER CODE-APPENDIX Sections 108-1 to End (MPWMD Act, § 118-203)

ADDENDUM:
State of California Department of Justice
Office of the Attorney General

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