City of Sacramento v. Citizens Utilities Co.

GOOD, J. pro tem.* This appeal raises the question, hereinafter stated, that was expressly reserved from decision in an earlier appeal entitled City of North Sacramento v. Citizens Utilities Co., 218 Cal.App.2d 178 [32 Cal.Rptr. 308], [110]arising out of the same condemnation proceeding. The facts preexisting the present record are stated at length at pages 181 through 184 of volume 218. However, a brief recapitulation is necessary herein.

In December 1956 the City of North Sacramento (now a part of the City of Sacramento and hereinafter referred to as the “city”) pursuant to Public Utilities Code section 1401 et seq. instituted condemnation proceedings to acquire the water system owned by Citizens Utilities Company of California. After extended hearings the Public Utilities Commission in 1958 fixed the just compensation, evaluated as of December 3, 1956, at $2,206,000. In November 1959 an interlocutory judgment was entered in the trial court for that amount “subject to modification by reason of such increase or decrease as may hereafter be certified to this Court by the Public Utilities Commission. ...” This clause was mandatory under section 1416 of the Public Utilities Code. Pursuant to section 1417 of said code the utility petitioned the commission for an increase of said award by reason of expenditures made to preserve and improve the water system after said date of evaluation. The city likewise petitioned to decrease the award by reason of depreciation, loss or destruction of the properties. After selling its bonds, the city deposited into court the original “just compensation” award and assumed possession of the water system on May 25, 1962, pursuant to a “final” order of condemnation entered May 17, 1962. The appeal hereinabove referred to was taken from this order. As was explained in the decision therein (218 Cal.App.2d, fn. 1, p. 180) quotation marks were and are used herein because said “final” order and the amount of just compensation therein designated ($2,206,000) were still expressly subject to modification if increase or decrease was ordered by the commission at the conclusion of the proceedings still pending before it. (Cf. 218 Cal.App.2d, at pp. 180, 183, 192-193.)

On February 4, 1964, the commission filed its findings and decision on the pending betterments and depreciation petitions. Both parties had stipulated that hearing thereon should be continued and the matters determined as of the date of change of possession. The commission found that the just compensation theretofore fixed at $2,206,000 should be increased by $232,000. After the utility’s petitions for rehearing by the commission and for a writ of review by the Supreme Court were denied, on August 4, 1964, it moved the