Fallbrook Sanitary District v. San Diego Local Agency Formation Commission

Factual Summary

On December 15, 1986, the Fallbrook Public Utilities District (FPUD), pursuant to the Cortese/Knox Local Government Reorganization Act of 1985 (Gov. Code, § 56000 et seq.), applied to the San Diego County Local Agency Formation Commission (LAFCO) for approval of a plan to incorporate the new city of Fallbrook.

The proposal FPUD made to LAFCO included dissolution of a number of county service areas and the partial detachment of one such service area. Under FPUD’s proposal the service areas would be replaced with city improvement districts and park and recreation services provided by the new city. The boundaries of the new city encompassed entirely the territories of FPUD and the Fallbrook Sanitary District (FSD).

On December 9, 1987, LAFCO held a hearing on FPUD’s proposal. At the hearing LAFCO approved the proposal but added to it a provision which would reorganize FSD and FPUD. Under the provision added by LAFCO, FSD and FPUD would have been transformed from independent special districts to subsidiary districts of the new city. As subsidiary districts they would be governed by the Fallbrook City Council rather than their own independently elected board…