COMMUNITY YOUTH ATHLETIC CENTER, Plaintiff and Appellant, v. CITY OF NATIONAL CITY et al., Defendants and Appellants; ROBERT LEIF et al., Defendants and Respondents.
Nos. D060001, D061141
Fourth Dist., Div. One
Oct. 30, 2013
220 Cal. App. 4th 1385
COUNSEL
Pillsbury Winthrop Shaw Pittman, Richard M. Segal, Brian D. Martin, Nathaniel R. Smith; Institute for Justice, Dana Berliner and Jeff Rowes for Plaintiff and Appellant.
Claudia G. Silva, City Attorney; Best Best & Krieger, Bruce W. Beach, Rebecca J. Andrews and Ellen P. Head for Defendants and Appellants.
Thorsnes Bartolotta McGuire, Vincent J. Bartolotta, Jr., and Karen R. Frostrom for Defendants and Respondents.
OPINION
HUFFMAN, J.—In 2007, defendants and appellants, the City of National City and its community development commission (the Commission or CDC; together, the City), approved an amendment to its 1995 redevelopment plan, ordinance No. 2007-2295 (Amendment), that extended the time period authorized by the plan for the use of eminent domain powers within a 300-acre area, based on certain designations of physical and economic blight. (
When their opposition to the City‘s approval of the Amendment was unsuccessful, CYAC brought this reverse validation action in superior court (
After a bench trial, the superior court issued a statement of decision and judgment in favor of CYAC, the Interested Parties and the interested public. In the reverse validation proceedings, the trial court examined the administrative record and set aside the Amendment to the redevelopment plan, by issuing declaratory relief based on its findings of several violations of the CRL: (1) contrary to the provisions of
In an underlying finding, the trial court concluded that the administrative record nevertheless contained “substantial evidence” of a condition of economic blight (by using crime statistics citywide). However, since the record failed to contain “substantial evidence of at least one condition of physical
Additionally, the trial court issued declaratory relief on the ground that the City had violated the PRA, by failing to produce at the request of CYAC certain documents about the same two types of underlying raw data relied upon in the RTC (field surveys of blight conditions, and property-by-property crime data), which the City had used to justify its blight claims.
Further, the court determined that the federal procedural due process rights of CYAC and the public had not been adequately protected by the City during the amendment process, due to the City‘s failure to comply with CRL statutory requirements or to grant a continuance of the hearing. The court issued declaratory relief finding federal due process violations and awarded nominal damages ($1). (
After trial, the court ordered the City to pay substantial attorney fees to CYAC ($1,906,516.75) and to the Interested Parties ($84,652.50). The court had initially determined that their requests were untimely filed, but that discretionary relief from default should be granted to entertain the fee motion. (Cal. Rules of Court, rule 3.1702; all further rule references are to the California Rules of Court;
The City appeals the judgment and in the consolidated appeal (D061141), the fee orders. CYAC has filed a cross-appeal of a portion of the underlying findings on the reverse validation decision (to challenge the trial court‘s ruling regarding economic blight, that citywide crime data was correctly considered by the City, rather than just projectwide data). (
CYAC has also cross-appealed on a timeliness issue regarding its attorney fee request, since the trial court granted CYAC and the Interested Parties discretionary relief from the untimely filing, then awarded fees. However, CYAC contends there was no late filing in the first place that gave rise to any such need for such relief. (Rule 3.1702;
On the merits of the appeal and cross-appeal, first, our review of the administrative record persuades us that the trial court‘s reverse validation order is well supported by the facts and the law concerning the CRL violations of sections 33352 and 33457.1 (map requirement and description of specific, quantifiable evidence supporting the blight findings). Although the Legislature abolished redevelopment agencies through its 2011 legislation, the issues regarding the invalidity of this Amendment have not become moot by the passage of time or the subsequent legislative action, particularly as to the attorney fee awards. (
Next, on the trial record of the PRA issues, which includes both the administrative record and the trial exhibits and testimony, we uphold the judgment of the trial court issuing declaratory relief in favor of CYAC. Although we disagree with some of the reasoning set forth in the statement of decision, the particular theory of the trial court is not controlling, and it reached the correct result. (
However, the judgment must be reversed in part with respect to the trial court‘s erroneous determination that as a matter of law the City‘s proven statutory violations of the CRL additionally amounted to an actionable deprivation of federal due process protections, under the appropriate legal test. (Mathews, supra, 424 U.S. 319.)4 Although CYAC properly pursued its remedy in the reverse validation action to challenge such a blight designation amendment within the statutory limitations period (only 90 days;
Accordingly, we affirm the judgment in part but reverse the grant of declaratory relief on the due process theory, with directions to enter a different order. On the attorney fee issues, we find the trial court appropriately granted CYAC and the Interested Parties discretionary relief from any applicable filing deadlines for their fee request, but we reverse the orders awarding such fees and costs to the extent that they incorrectly relied upon title
BACKGROUND FACTS AND PROCEDURE
A. Ordinance and Complaint; Prior Appeal on Publication
In broad outline, with more specialized facts to be added in the discussion portion of this opinion, the City‘s 1995 redevelopment plan and its amendments (the plan) authorized the use of eminent domain in the area where the CYAC and Interested Parties’ properties are located, based on designations of blight. (
As proposed, the 2007 Amendment reduced the area subject to eminent domain, restricted its use on residential properties, and focused on two business corridors (Civic Center Drive and National City Boulevard) and the harbor district area, where some environmental contamination existed due to
In preparation for amending the plan, the Commission hired the consulting firm RSG, an independent contractor, to prepare reports required under the CRL. RSG assisted the Commission (sometimes designated the agency) in preparing and publishing the initial notice of the public hearings on the Amendment, both through mail notice to taxing agencies and through newspaper publication. From February 2007 to June 2007, RSG was in the process of drafting its report to the council (the RTC) on the need for the Amendment. RSG‘s contract with the Commission provided that this agency would have the property rights to the memoranda, reports, maps, drawings, plans, specifications and other documents prepared by RSG for the project, and all of these would be turned over to the agency upon completion of the project.
On April 17, 2007, a hearing was held by the city council to adopt a resolution to authorize circulation and public review of the Amendment, and to set a public hearing for June 19, 2007, to consider adoption of the Amendment. The council‘s agenda statement attached a map indicating the boundary around the parcels that would be subject to the Amendment (the boundary parcel map).
In May 2007, notice of the June hearing was mailed to all affected tax agencies, and to all affected property owners, businesses and residents. The same boundary parcel map that was attached to the April 17, 2007, council agenda statement was also provided with the May 11, 2007 mailing.
In May 2007, CYAC retained expert witnesses to oppose the Amendment and began the process of requesting numerous documents that related in any way to the proposed amendment for the project area, which included CYAC. On May 23, it sought “Any and all blight studies that have been performed that specifically deal with National City Boulevard and its surrounding areas or any other blight studies that have been performed for National City since 2000. Please include any documents that show the actual areas the City or CDC included in conducting the blight study. [[] Any and all blight studies the CDC or City will rely on in support of the redevelopment plan or eminent
City staff members responded to CYAC that such a “blight study” was also called the RTC, and that the City planned to make it and other reports available approximately three days before the public hearing, pursuant to the standards of the
In June 2007, the City published three weekly notices in local newspapers to give notice of the upcoming June 19, 2007 public hearing. On June 14, 2007, three business days before the hearing, the City released to the public for review its 37-page RTC recommending adoption of the Amendment. The RTC detailed in writing different types of blight conditions that it found were remaining in the Amendment area, and stated it had relied on six major sources in that analysis and assessment, including “the April 2007 field survey by RSG,” and “Information from the National City police department.” The RTC concluded that such blight could not be eliminated without the use of eminent domain.
The RTC referred in passing to 2005 findings by the United States Environmental Protection Agency (the Brownfields Studies) about environmental contamination existing in part of the Amendment area. (See fn. 3, ante.) No map was attached to the RTC made available to the public to show where in the project any particular blighting conditions existed. (See fns. 1, 2, ante, text of CRL statutes requiring such a map.)
On June 15, 2007, CYAC sent three PRA requests to the City, referencing the same boundary parcel map that had been attached to the April 17, 2007 council agenda and the City‘s notice of hearing. On June 17, 2007, CYAC, represented by a law firm, the Institute for Justice, sent a letter to the City objecting to the Amendment on various statutory and constitutional grounds.
At the June 19, 2007 public hearing, the city council heard opposition from CYAC and the Interested Parties and other citizens to the adoption of the Amendment. CYAC filed 34 pages of written objections to the Amendment. CYAC obtained permission from the City to file its six-volume appendix in opposition to the plan. The City denied CYAC‘s request for a continuance of the hearing, but allowed its additional written objections to be received after the hearing.
On July 10, 2007, the City provided to the public four maps of the Amendment area showing the different types of blighting conditions on which it relied as justification for the Amendment (i.e., structural obsolescence, incompatible adjacent uses, deterioration and dilapidation, or defective design without parking). (
After several more PRA requests and much further communication, discussion, clarification, and objections taking place between June and August 2007, the City supplied at least three additional sets of informational documents to CYAC. (See pts. II, III, post.)
In September 2007, CYAC brought this action seeking a judicial declaration that the Amendment was invalid on a number of specific grounds, including noncompliance with the procedures of the CRL. In particular, its first, fifth, and sixth causes of action alleged that the City failed to release or complete its reports or maps on the matter in a timely fashion, thus preventing the public from preparing any effective objections to the proposed Amendment, or from obtaining documents related to the required substantial evidence of existing blight and alleviation of blight through the proposed redevelopment.
In its second cause of action alleging violations of federal constitutional protections, CYAC contended it was deprived of procedural due process of law affecting the proposed use of its property (
As explained in two prior opinions issued by this court, CYAC obtained a court order through noticed ex parte proceedings for the publication of the summons, which was directed toward the City and to “‘All Persons Interested in the Matter of the Amendment to National City‘s Redevelopment Plan as Adopted by [the ordinance].‘” (Community Youth Athletic Center v. City of National City (2009) 170 Cal.App.4th 416, 420 [87 Cal.Rptr.3d 903] (our prior opinion); Community Youth Athletic Center v. Superior Court (Feb. 18, 2009, D052630) [nonpub. opn.] [reversing the judgment on the separate PRA petition; some facts stated here have been adapted from those opinions].) CYAC encountered difficulties with the publication process in English and Spanish newspapers when one of the newspapers unexpectedly changed its publication schedule, and ultimately, the summons that was published after some delay retained an incorrect date for responses by any interested parties (i.e., the published summons contained the date for response as originally anticipated, thus advancing the allowable response period following publication, from Monday, Nov. 19 to Friday, Nov. 16, 2007). (
The City then moved for judgment on the pleadings on all causes of action, claiming defective publication. The trial court ruled in favor of the City, and CYAC appealed. We reversed, allowing republication and further notice proceedings.
B. Renewed Litigation After 2009 Prior Appeal
Back on track, the parties negotiated the contents of the administrative record, for purposes of litigating the reverse validation issues. The administrative record was lodged with the trial court in February 2011. The Interested Parties were granted leave to appear and respond, pleading similar theories.8
Extensive motion practice continued, in which CYAC pursued a motion for summary adjudication on the PRA claims, opposed by the City. The court denied the motion, ruling that there were remaining disputed material facts about whether the raw data regarding the blight studies created by the private consultant, RSG, constituted public records subject to disclosure.
Discovery disputes ensued, followed by motions to compel production of records or quash subpoenas. The City pursued a summary adjudication
In preparation for trial, the City sought to sever the PRA issues, but the court denied the motion. It had become known that the City‘s consultant, RSG, had routinely purged its records after completing the RTC, and had not retained copies of the raw data in the form of its field survey spreadsheets that were compiled by staff persons who walked the area to be covered by the Amendment, as they investigated physical blighting conditions.
Back in May 2007, the City police department‘s crime analyst sent RSG a chart containing three years of crime data (the three-year chart) which RSG used to prepare a table of crime rates from 2006 for the RTC. However, the raw data used by the City‘s analyst to prepare the three-year chart was no longer available.
CYAC brought a motion seeking an order for sanctions for alleged spoliation of both kinds of that “critical evidence.” The City filed opposition. The court denied the motions, ruling there was no evidence from which the court could reasonably infer intentional or willful conduct by City agents or employees to destroy either the raw data used by the consultant (field surveys) or any background data compiled by the City police department (crime statistics).
Trial briefs and motions in limine were filed, as well as motions for judicial notice. In limine, the court ruled that with respect to the reverse validation claims, review was limited to the administrative record.9 However, on the PRA and constitutional issues, testimony and trial exhibits going
C. 2011 Statement of Decision and Judgment; Attorney Fee Awards
In its April 20, 2011 statement of decision, the trial court found on the reverse validation claims that the City‘s lack of compliance with CRL requirements resulted in a lack of support for the Amendment due to the failure to include the required map attachment in the RTC. (
On the PRA, the trial court‘s key findings were (a) both forms of raw data relied on by the RTC and the City, the property-by-property field surveys conducted by RSG and the property-by-property crime data for three years before the PRA request was made, constituted public records; (b) CYAC‘S various PRA requests were not unduly broad or vague, and thus (c) the City did not undertake a reasonable search for the requested information, or carry its burden of showing that it justifiably withheld public records that were in the possession of its consultant, RSG, or in the possession of its police department when the requests were made. Specifically, “The Court holds that a reasonable search requires the agency to: (1) ask the known custodian of records for (2) the documents requested in the PRA request.” (Italics added.) Thus, the court impliedly found that the City should have conveyed to the consultant the same request language that CYAC sent to the City. Although the court stated the City staff members had demonstrated evident neglect of their duties, the court was “not convinced that the violations of the PRA were intentional or that the City refused to attempt to obtain documents from its consultant.” The court issued declaratory relief finding such violations of the PRA, but denied any injunctive relief, on the basis there was no showing of any need for prospective relief.
Regarding federal due process, the trial court made a series of rulings. First, the City was found to have violated “CYAC‘s right to procedural due process under the Fourteenth Amendment with respect to its failure to timely provide the maps with the RTC, which were required by statute.” (Italics added.) The trial court determined that the “City‘s decision to provide CYAC with the RTC only three business days before the public hearing, and at that time its failure to provide any underlying data and without the required maps, created an unreasonable risk of erroneous deprivation,” denying CYAC its procedural due process rights. The trial court also concluded, “at a minimum, a continuance of the public hearing upon request was required.”
In its federal due process findings, the trial court continued: “The evidence in this case presents a troubling picture where the [City] appears to have intentionally provided notices and scheduled all of the public hearings so as to provide as little time as possible to meaningfully prepare any opposition. The RTC itself was vaguely written.” The City had compounded this process by failing to provide the statutorily required maps with the RTC, by failing to respond promptly to PRA requests for crime data and property survey information, by unjustifiably claiming the survey data were not public records, and by failing to secure that information during litigation to prevent it from being destroyed. (
However, to the extent that CYAC seemed to be making a constitutional challenge to
The court thus declined to make a broad finding that any particular number of weeks or months of access to the RTC must have been provided to the public by the City, pursuant to the terms of
Following requests for prevailing party attorney fees and costs by CYAC and the Interested Parties, the trial court granted them relief from default for late filing pursuant to
DISCUSSION
I
OVERVIEW AND INTRODUCTORY REMARKS
We will set forth the respective standards of review and statutory schemes as we discuss, in turn, the grant of declaratory relief on the reverse validation issues about CRL procedural protections for such a redevelopment plan amendment, and the application of the PRA standards in this factual and legal context. (Pts. II, III, post.) We can then address the propriety of the declaratory relief issued on the federal due process issues, as well as the attorney fee issues, both on the appeal and cross-appeal. (Pts. IV, V, post.)
In all of our analyses, we are mindful that in its 2011 legislation (
We are required to review the existing ordinances and redevelopment actions in the timeframe in which they were conducted, in this case, 2007.
Our review of the judgment is conducted in view of the trial court‘s issuance of a detailed statement of decision that addressed each of the above described substantive areas. When reviewing a judgment based on such a statement of decision, “any conflict in the evidence or reasonable inferences to be drawn from the facts will be resolved in support of the determination of the trial court decision.” (In re Marriage of Hoffmeister (1987) 191 Cal.App.3d 351, 358.) The ultimate facts found in the court‘s statement of decision necessarily include findings on the intermediate evidentiary facts that sustain them. (Muzquiz v. City of Emeryville (2000) 79 Cal.App.4th 1106, 1125.)
Although the statement of decision reveals the basis for the judgment, all of its reasoning is not treated as binding on an appellate court. (D‘Amico, supra, 11 Cal.3d 1, 18–19.) To the extent the record presents an undisputed or established set of facts, the interpretation and application of a statutory scheme to those facts are treated as questions of law and are subject to de novo review on appeal. (Blue v. City of Los Angeles (2006) 137 Cal.App.4th 1131, 1140 (Blue).) With regard to validation proceedings, the undisputed set of facts is to be measured against the standards set by those statutes. (Katz v. Campbell Union High School Dist. (2006) 144 Cal.App.4th 1024, 1031 (Katz).) This appellate court is not bound by the trial court‘s statutory interpretations. (Blue, supra, at p. 1140; California Teachers Assn. v. San Diego Community College Dist. (1981) 28 Cal.3d 692, 699.)
Essentially, these parties do not dispute that the trial court correctly stated each of the statutory standards for deciding the claims under the CRL and PRA regulatory schemes, but they each challenge portions of the trial court‘s interpretation and application of those standards to the facts as established by the evidence, and they also argue the sufficiency of that evidence. (Glendora, supra, 185 Cal.App.4th 817, 835–836 [administrative record must contain* the power of eminent domain.” (Neilson v. City of California City (2007) 146 Cal.App.4th 633, 642; see Evans v. City of San Jose (2005) 128 Cal.App.4th 1123, 1131].)
II
REVERSE VALIDATION DECLARATORY RELIEF
A. Validation Law and CRL
Under
“‘The scope of judicial review of an agency‘s decision to adopt a redevelopment plan is quite limited. Both the trial court and this court review the administrative record to determine whether the findings and decision of the legislative body are supported by substantial evidence.’ [Citations.] Appellate ‘review is done independent of any determinations made by the superior court.’ [Citations.] [¶] In examining the administrative record, we resolve all ‘“reasonable doubts“’ and ‘accept all reasonable inferences supporting the administrative findings.’ [Citation.] ‘The fact that different inferences or conclusions could be drawn, or that different methods of gathering and compiling statistics could have been employed, is not determinative in a substantial evidence review.‘” (Glendora, supra, 185 Cal.App.4th 817, 835–836.)
On appeal, this court independently “‘determine[s] the law applicable to the facts in the administrative record’ in assessing whether the statutory requirements have been met. [Citations.]” (Glendora, supra, 185 Cal.App.4th 817, 836.) We review de novo the legal issues involving the interpretation
To review the sufficiency of the evidence supporting the trial court‘s conclusions invalidating the Amendment, we are guided by the CRL sections outlining the characteristics of blighted areas that give rise to a need for redevelopment. “[A]n area is blighted, and hence eligible for redevelopment, if it is predominantly urban and if it is adversely affected by economic and physical conditions too serious to be cured by private or governmental enterprise, thus necessitating redevelopment.” (County of Riverside v. City of Murrieta (1998) 65 Cal.App.4th 616, 624–625 (Riverside).)
In 2006, the Legislature made important, applicable changes in the redevelopment law, imposing more restrictions on the definitions and proof of blighting conditions. (Glendora, supra, 185 Cal.App.4th at p. 832.)
B. CRL Rulings
Many of the topics in the trial court‘s detailed analysis of the various blight showings regarding CYAC‘s reverse validation claims (first, fifth and sixth causes of action) are not directly discussed or attacked in this appeal and cross-appeal. We focus on the two major defects that prevented enforceability of the Amendment, and that are challenged on appeal: (1) the RTC omitted maps showing the location of blighting conditions that should have been made available before the time of the June 2007 public hearing under sections
Even though the trial court determined that the administrative record contained “substantial evidence” of one condition of economic blight (by regarding the conditions of blight. (Historical and Statutory Notes, 41 West‘s Ann. Health & Saf. Code (2010 ed.) foll.
In its cross-appeal, CYAC attacks the ruling there was some evidence of economic blight, claiming it was error for the trial court to use crime statistics citywide. (
C. Analysis: Appeal
1. Defects in Notice of Hearing and Issuance of RTC
Under
In its related due process ruling, the trial court determined that the publication of the RTC only three business days before the public hearing, and the failure by the City to provide any underlying data or the required maps at that time, “created an unreasonable risk of erroneous deprivation” of CYAC‘s procedural due process rights. In any case, the trial court said that with respect to the validation claims, even if the late-filed maps were considered, they still did not contain any substantial evidence “that there is a substantial amount of this blight or that this blight cannot be eliminated without the use of eminent domain.” (
We reject the City‘s positions that it substantially complied with the CRL requirements, or that overall, the administrative record supports the Amendment. First, under
With respect to the map requirement for the RTC,
The City relies on Blue, supra, 137 Cal.App.4th at page 1145, to argue that even though the map was not timely provided nor a continuance granted, CYAC was able to prepare extensive opposition and objections, it could have conducted more of its own investigation, and thus it should not be deemed to have suffered any prejudice in preparing its opposition. However, the court could reasonably have concluded, and impliedly did, that a more focused investigation would have been possible if the statutory compliance had been forthcoming, with the use of a map identifying the location of the blighting conditions being relied upon in the RTC. We agree with the findings of the trial court that this sequence of events in the processing of the Amendment did not qualify as excusable error that would permit validation of the Amendment, and it also did not constitute such “error, irregularity, or omission which does not affect the substantial rights of the parties,” that accordingly could properly be “disregard[ed]” by the court hearing the action. (
We are supported in this conclusion by the legislative history of the 2006 amendments to the CRL showing, in relevant part, that more-stringent definitions and quantifiable factual support for alleged conditions of economic and physical blight are now required, so that interested members of the public are kept informed of potential redevelopment changes affecting them. (Glendora, supra, 185 Cal.App.4th at p. 832; Historical and Statutory Notes, 41 West‘s Ann. Health & Saf. Code (2010 ed.) foll.
2. Defects in Data Provided Under CRL Definitions of Blight
The trial court ruled the administrative record did not contain any substantial “specific, quantifiable evidence about the location and prevalence of the alleged blighting conditions,” under the definitions of
In its statement of decision, the court exhaustively analyzed the types of blighting physical conditions set forth in the RTC and administrative record, under
