Resolution Adopting New Water Rates Not Subject to Referendum

After complying with the procedural requirements of California Constitution article XIII D, section 6 (commonly referred to as Proposition 218), the Amador Water Agency adopted a resolution approving new water rates. In the resolution, the Agency Board of Directors concluded that the rate changes were necessary to cover ongoing and increasing costs of providing water service, including Agency operations and maintenance costs. Citizens submitted a referendum petition challenging the resolution. The Agency’s clerk rejected the referendum petition and refused to place it on an election ballot on the grounds that the petition was confusing and the rate changes, while subject to challenge by initiative under Prop. 218, are not subject to referendum. The Association challenged the clerk’s actions. The trial court concluded that the resolution was not subject to the referendum power and could only be challenged by initiative. The Third District Court of Appeal also determined that the resolution was not subject to referendum, but on different grounds.