Carachure

INTRODUCTION

Carlos and Ana Carachure filed this action for a writ of mandate against the City of Azusa, alleging the City violated article XIII D of the California Constitution by charging sewer and trash franchise fees that exceeded the cost of providing those services and by using the fees collected to fund general city services. The City argued the Carachures failed to exhaust their administrative remedies because they did not follow the statutory procedures for a refund, which require them to pay the fees under protest and file a claim for a refund. The trial court agreed with the City and entered judgment in its favor. Because the Carachures’ constitutional challenge to the City’s collection and use of franchise fees seeks relief outside the scope of the statutory claims procedure for refunds, we reverse.

FACTUAL AND PROCEDURAL BACKGROUND

A. The City Collects Franchise Fees for Sewer and Trash Services The City provides water, sewer, and trash services to its residents.1 The City provides sewer services through the Azusa Public Works Department (a “standalone enterprise,” according to the City’s expert) and contracts with a private waste hauler for

The parties…