East Bay Mununicipal Utility District v. Richmond Redevelopment Agency

Opinion

CHRISTIAN, J. East Bay Municipal Utility District (hereinafter EBMUD) appeals from a judgment denying recovery from respondent Richmond Redevelopment Agency of the cost of relocating certain water mains in streets of the City of Richmond.

The Richmond Redevelopment Agency was created under the Community Redevelopment Law. (Health & Saf. Code, § 33000 et seq.); its powers are those conferred by statute. (See Health & Saf. Code, § 33122.) EBMUD is a municipal utility district created as authorized by the Municipal Utility District Act (Pub. Util. Code, § 11501 et seq.); it exercises a statutory franchise to locate in the streets of the City of [792]Richmond lines for the supply and distribution of water. (See Pub. Util. Code, § 12808.)

In 1966, the redevelopment agency devised an urban renewal plan for downtown Richmond. Among the improvements planned was the widening of Barrett Avenue, between 6th and 14th Streets. The redevelopment agency simultaneously entered into a grant in aid and cooperation agreement with the City of Richmond. One provision of the agreement was that the city would provide plans and specifications and pay costs incurred for the redevelopment project. Barrett Avenue, between 6th and' 14th Streets, was within the redevelopment area. Among the functions the city agreed to undertake were “the installation, construction, or reconstruction within the project area of streets, utilities, parks, playgrounds and other necessary improvements . . .” The city also agreed to “accomplish or cause to be accomplished the vacating of all streets, roads, alleys and other public ways, to be eliminated in preparing the project area for its new uses, as shown in the urban renewal plan . . .” The city desired, independent of the agency’s project, to widen Barrett Avenue in order to improve traffic flow.

McGuire and Hester contracted to perform the improvements on Barrett Avenue. Kister, Savio and Rei,. Inc. was employed by the redevelopment agency as project engineers. In 1966, plans submitted by the engineers indicated that EBMUD’s existing water mains in Barrett Avenue would have to be relocated in order to accommodate the street improvements. The City of Richmond took no action to compel relocation of the water main. EBMUD decided to abandon its existing 6-inch main along the project area and substituted an 8-inch main so located as to be compatible with the street project; expenses totaling $44,727.87 were incurred by EBMUD, but no right of compensation was asserted.