Brydon

Appellants are customers of respondent East Bay Municipal Utility District (the District) who seek to invalidate the water rate structure design enactéd by the District in April 1991 as part of a comprehensive drought management program. Appellants petitioned for writ of mandate and sought declaratory and injunctive relief. The petition alleged: (1) the inclining block rate structure at issue constitutes an invalid “special tax” in violation of article XIII A, section 4, of the California Constitution; (2) the adoption of the rate structure was arbitrary, capricious and not rationally related to any legitimate legislative or administrative objective; and, (3) the rate structure unreasonably discriminates against customers “residing in the hot climate areas east of the Berkeley-Oakland hills.”

Appellants claim on appeal that the trial court erred in denying the petition and issued an inadequate statement of decision.

Factual and Procedural Background

The District is a public agency created pursuant to the Municipal Utility Act (Pub. Util. Code, § 11501 et seq.) and governed by an elected board of directors. The board determines all questions of policy, including the…