East San Bernardino County Water District v. City of San Bernardino

This is an appeal from a judgment of the superior court which determined there were no arbitrable issues in an arbitration proceeding sought by the East San Bernardino County Water District (“District”) concerning a Joint Powers Agreement with the City of San Bernardino (“City”).

The District provides water and sewer services for approximately 35,000 people in an area lying generally outside the eastern boundary of the City. In the 1950’s, the City was considering the construction of a second sewer treatment plant to serve the eastern area of the City as well as lands lying to the east thereof. At the same time, the District was planning construction of a treatment plant and a main line sewer system. Both entities were seeking federal funds for their proposed construction, which would, in part, duplicate each other.

The City employed Currie Engineering Company (“Currie”) to make a report on the project. The City furnished the District with a copy of the Currie Report which was the only formal engineering study presented to both parties. The Currie Report, among other matters, made projections serving to show sufficient income could be generated from a $1 monthly sewer…