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Three-day notice is for pay or vacate. If the lease has already expired and the Tenant does not intend to renew the lease, then you just need to send a regular notice to pay pursuant to the lease with copies of ALL the bills paid for the Tenant and ask for reimbursement. You should also mention in the notice that this amount would be taken from the Tenant's Security Deposit if the Tenant ignores your notice, if the Tenant gave you/property management a deposit prior to moving in.
lease will eapire 11/18/15. tenants want to stay , but don't want to pay water bill. her argument is those bills are many month old.
Is there a law we can not ask reimbursement because we pay first ?
No, there is no such law. Your right to ask for reimbursement is not waived because the property management paid for the bills. The Tenant's obligation to pay is not released by the property management's action.
You can send the Tenant three-day notice to pay the bills or vacate the premises. If the Tenant refuses to pay, but still decides to stay, then you would need to initiate unlawful detainer action in Court in order to remove the Tenant from the premises.
For California eviction process, click on the link below: