2. Procedural Background
On November 6, 2008, California Water Service Company (Cal Water) filed this application seeking Commission authorization (1) to require the current or future owners of certain real estate property2 in Cal Water's Selma District to pay a $40,000 fee prior to receiving water service from Cal Water, and (2) for Cal Water to remit that amount to Dwight Nelson. Cal Water stated that pursuant to Ordering Paragraph 8 of Commission D.85-06-132, it was required to file an advice letter when developers of the specified property sought water service from Cal Water. Thus, Cal Water filed its Advice Letter 1843 seeking to impose the $40,000 fee on the prospective customers (namely, the current owners of the property, John and Lucretia Emmett), and to remit the collected amount to Nelson. The Emmetts protested Cal Water's Advice Letter. The Commission's Division of Water and Audits determined that the informal Advice Letter process was inappropriate for resolving the issues raised in the protest and directed Cal Water to file this application, which Cal Water did on November 6, 2008.
On December 11, 2008, the Emmetts protested this application, contending that the relief sought by Cal Water was contrary to prior Commission decisions, contained a material error, and was unjust and unreasonable.
On December 30, 2008, Dwight Nelson sought party status in this proceeding and stated that he was the real party-in-interest in the proceeding.
On March 10, 2009, the assigned Administrative Law Judge (ALJ) convened a prehearing conference, where the parties requested that a mediator be appointed to facilitate an effort to resolve this matter in a mutually agreeable manner. The Chief ALJ appointed another ALJ to serve as the mediator, as provided in the Commission's Alternative Dispute Resolution program.
The mediation was convened on April 23, 2009, with all three parties present. On June 5, 2009, Cal Water and the Emmetts filed their motion for approval of a proposed settlement agreement. Nelson contested the proposed settlement agreement on July 6, 2009, and asked that the Commission reject the settlement and grant the application. The Commission issued D.09-11-008 on November 24, 2009, which denied the motion to adopt the contested settlement and dismissed the application. That decision found that the moving parties did not make the required showing for proving that the settlement should be adopted by the Commission. Specifically, the settling parties failed to show that the proposed settlement agreement was reasonable in light of the record, consistent with the law, and in the public interest.
Nelson timely filed an application for rehearing. The Commission granted a rehearing to reopen the record on the application in D.11-01-029. That decision reversed and vacated the determination to dismiss the application. On April 25, 2011, Cal Water, Nelson, and the Emmetts (Moving Parties) filed this joint motion for adoption of an all-party settlement.
2 The original owner of the approximately 62 acre property was Trend Homes, Inc., and Decision (D.) 85-06-132 refers to John Bonadelle as acting on behalf of that corporation. John and Lucretia Emmett are the current owners of the property.
