San Marcos Water District v. San Marcos Unified School District

We consider this case on remand from the Supreme Court following its decision at 42 Cal.3d 154 [ 228 Cal.Rptr. 47 , 720 P.2d 935 ]. In that decision, the court held that a “capacity fee” assessed by the San Marcos Water District (Water District) against all users of it sewer system, including the San Marcos Unified School District (School District) constituted a special assessment from which governmental entities were impliedly exempt. We are now direct ed to consider whether the School District is entitled to a refund of the capacity fees it paid to the Water District between 1971 and 1980.

We need not repeat the detailed statement of facts found in the Supreme Court opinion. For our purposes, it is sufficient to note that between October of 1971 and December of 1979, the School District paid $59,750 in capacity fees to the Water District. Beginning in March of 1981 the School District stopped paying the capacity fees. In late 1983, the two districts agreed to submit their dispute for judicial determination pursuant to the provisions of Code of Civil Procedure section 1138. An “agreed case” was filed on November 15,1983, with the Water District nominally listed as…