Regents of University of California v. City of Los Angeles

The issue presented is whether as a matter of law the City of Los Angeles (city) can impose a sewer service charge on the Regents of the University of California (Regents) when the charge is used to finance capital improvements to the local sewer system. We conclude that they may not.

The Los Angeles Municipal Code section 64.102 was amended effective 1980 so as to increase the city’s sewer service charge. The amendment also earmarked a portion of the charge for the financing of capital improvements to the local sewer system. In pertinent part, the new ordinance reads:

The part of the charge to be used for capital improvements was paid by the Regents under protest. In September 1981, the Regents filed a declaratory relief action and an injunction for reimbursement of monies paid. They stopped paying the charge. The city cross-complained, seeking a declaration that the Regents are required to pay the charges. The city also asked for unpaid charges.

The Regents’ motion for summary adjudication was granted. The basis for the judgment was an earlier case between the parties, Regents of University of California v. City of Los Angeles (1979) 100 Cal.App.3d 547 [ 160…