California-American Water Co. v. Marina Coast Water District

address Monterey County’s water needs, two public agencies and a water company entered into five interrelated agreements to collaborate on a water desalination project. After it was revealed that a board member of one of the public agencies had a potential conflict of interest, the water company took the position that the agreements were void under Government Code section 1090. In this action for declaratory relief, the trial court agreed that four of the five agreements were void. On appeal, appellant Marina Coast Water District (Marina or district) argues that the claims challenging the parties’ agreements were time-barred and that the trial court lacked jurisdiction to consider the parties’ dispute. We disagree with both contentions and affirm. In the published portion of our decision, we hold that a public agency is not bound by the 60-day limitation period that governs validation actions when it seeks a judicial determination of the validity of a contract under section 1090.

I.

Factual and Procedural Background

A. The Parties Agree to Collaborate on a Desalination Project.

Marina is a public agency formed to provide water for the City of Marina and neighboring…