RICHARD PAUL RUTGARD, Plaintiff and Respondent, v. CITY OF LOS ANGELES, Defendant and Appellant.
B297655
IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA SECOND APPELLATE DISTRICT DIVISION TWO
7/30/20
CERTIFIED FOR PUBLICATION; Los Angeles County Super. Ct. No. BS170286
APPEAL from a judgment of the Superior Court of Los Angeles County, Mitchell L. Beckloff, Judge. Affirmed.
Michael N. Feuer, City Attorney, Kathleen A. Kenealy, Chief Assistant City Attorney, Scott Marcus, Chief, Civil Litigation Branch, Blithe S. Bock, Assistant City Attorney, Michael M. Walsh, Deputy City Attorney, for Defendant and Appellant.
Sullivan, Workman & Dee, Karyn A. M. Jakubowski, and Charles D. Cummings, for Plaintiff and Respondent.
* * *
California’s Eminent Domain Law (
This appeal presents four cascading questions:
First, does a public entity desiring to retain condemned property under
Second, and if there is such a 10-year deadline, which definition of “adoption” does
Third, which law governs the inquiry into whether a resolution has been finally adopted—the local law governing the public entity at issue, or a standardized definition imposed by
Lastly, when are resolutions finally adopted under the local law applicable here—namely, the city’s charter? We hold that a resolution is “finally adopted” once the city council has enacted the resolution and it has either been (1) approved by the mayor, or (2) vetoed by the mayor, but overridden by the city council.
Because the city in this case finally adopted its initial and reauthorization resolutions 19 days past the 10-year deadline,
FACTS AND PROCEDURAL BACKGROUND
I. Facts
A. Property at issue
This case concerns a two-story building with 8,300 square feet of commercial space (the Property). The Property is located on Figueroa Street in the Highland Park neighborhood of the City of Los Angeles (the City), and is registered as a City Historical Monument. In early 2007, the Property was owned by Richard Paul Rutgard (Rutgard).
B. 2007 Ordinance
On May 29, 2007, the Los Angeles City Council (the City Council) enacted an ordinance “authorizing the condemnation” of the Property (the 2007 Ordinance). The 2007 Ordinance constituted a Resolution of Necessity declaring that the Property was being “acquired for public purposes“—namely, to serve as a “constituent service center” for City residents. The 2007 Ordinance passed by a two-thirds majority of the City Council.
On June 8, 2007, the Mayor of the City of Los Angeles (the Mayor) “approved” the 2007 Ordinance.
C. The interregnum period
On October 16, 2007, the City filed an eminent domain lawsuit to condemn the Property. In November 2009, the City and Rutgard settled the lawsuit and the City agreed to pay $2.5 million for the Property.
Due to the “economic downturn in 2008,” the City never developed the Property into a constituent center.
D. 2017 Ordinance
On June 23, 2017, the City Council enacted an ordinance “reauthoriz[ing]” the “use of the Property for a constituent service center” (the 2017 Ordinance). The 2017 Ordinance passed by a two-thirds majority of the City Council.
On June 27, 2017, the Mayor “approved” the 2017 Ordinance.
The City calculated two different effective dates for the 2017 Ordinance. The City initially calculated the effective date to be August 7, 2017, based on a posting date of June 28, 2017, which would constitute publication 10 days later and would become effective 31 days after that. The very next day, however, the City re-calculated the effective date to be July 9, 2017, based (1) on a posting date of June 29, 2017, which would constitute publication 10 days later, and (2) on a finding that the ordinance should take “effect[] upon publication” under section 252 of the
city charter (thus bypassing the presumptive, 31-day waiting period).
II. Procedural Background
On July 24, 2017, Rutgard filed a verified petition for a writ of mandate alleging that the City had a “present legal duty” to “offer [him] a right of first refusal to purchase” the Property under
The trial court ruled that the City had a “clear, present, ministerial duty to offer [Rutgard] the right of first refusal to purchase the Property” under
clock begins running on the date of adoption, not . . . the effective date of the ordinance.” The court further found that
Following the entry of judgment and the issuance of a writ of mandate, the City filed this timely appeal.
DISCUSSION
The City argues that the trial court erred in granting Rutgard’s writ of mandate. A court may issue a writ of mandate only if the petitioner establishes (1) “‘“a clear, present . . . ministerial duty on the part of the respondent“’ [citations]“; (2) “a correlative ‘“clear, present and beneficial right in the petitioner to the performance of that duty“’ [citations]“; and (3) “no ‘plain, speedy, and adequate’ alternative remedy exists [citation].” (People v. Picklesimer (2010) 48 Cal.4th 330, 340 (Picklesimer); People ex rel. Younger v. County of El Dorado (1971) 5 Cal.3d 480, 490-491 (Younger); see generally
state’s Eminent Domain Law (e.g., Inglewood Redevelopment Agency v. Aklilu (2007) 153 Cal.App.4th 1095, 1114). In reviewing the trial court’s issuance of a writ of mandate in this case, we are reviewing its interpretation of the Eminent Domain Law and its application of that law to undisputed facts. Our review of each is de novo (Union of Medical Marijuana Patients, Inc. v. City of San Diego (2019) 7 Cal.5th 1171, 1183; Professional Engineers in California Government v. Kempton (2007) 40 Cal.4th 1016, 1032), and we are accordingly not bound by either the trial court’s ruling or its rationale (see Williams v. Superior Court (2013) 221 Cal.App.4th 1353, 1361).
Under our state’s Constitution, a public entity’s eminent domain power authorizes the condemnation of private property only if “the public interest and necessity” so “require” and the property’s owner is “just[ly] compensat[ed]” for the taking. (
To ensure that public entities do not use their eminent domain power to acquire a property and then hold or “bank[]” that property indefinitely without ever putting it to its intended public use, our Legislature in 2006 enacted
“Property acquired by a public entity . . . that is . . . not used for the public use stated in the [original] resolution of necessity within 10 years of the adoption of th[at] resolution . . . shall be sold in accordance with the terms of subdivision[] (f). . ., unless the
governing body adopts a resolution . . . reauthorizing the existing stated public use of the property by a vote of at least two-thirds of all members of the governing body of the public entity or a greater vote as required by statute, charter, or ordinance.”
(
“If the public entity fails to adopt . . . a reauthorization resolution . . ., and that property was not used for the public use stated in [the property’s original] resolution of necessity . . . between the time of its acquisition and the time of the public entity’s failure to adopt a [reauthorization] resolution . . ., the public entity shall offer the person or persons from whom the property was acquired the right of first refusal to purchase the property . . . [a]t the present market value.”
(
entity to adopt a reauthorization resolution within 10 years of adopting the original resolution, a resolution is “adopted” on the date it becomes effective, and here the effective dates of the 2007 Ordinance and 2017 Ordinance are less than 10 years apart.5
The City’s two main arguments ultimately break down into—and hence present—four questions: (1) Does
I. Does Section 1245.245’s 10-Year Deadline Apply To The Public Entity’s Duty To “Adopt” A Reauthorization Resolution?
The City argues that
Whether
City—namely, that
The City resists this conclusion with what boils down to three arguments. First, the City asserts its interpretation of
canons of construction must yield to that purpose; they certainly cannot be used to undermine it. (Roberts v. United Healthcare Services, Inc. (2016) 2 Cal.App.5th 132, 146 [“Where . . . [a] canon leads to a result at odds with the otherwise clearly expressed legislative intent, the canon necessarily yields to that intent.“].)
Second, the City cites to a passage from the legislative history of
fashioning such a “meet it if you feel like it” deadline—either from the text or legislative history of
Lastly, the City argues that there is no reason to construe
resolution of necessity to reacquire the property, this is true but ignores that this alternative process entails substantial transaction costs such as having to conduct a new valuation of property and to engage in negotiations with the owner. (See
II. How Does Section 1245.245 Define When Initial And Reauthorization Resolutions Are “Adopted“?
Because
date?, and (2) If
A. Adoption date versus effective date
As between the date that a public entity adopts a resolution and the date that resolution becomes effective,
proceeding],
The City makes two arguments in favor of its view that
contain the content required by state law]), and the two cases the City cites merely parrot definitions plucked from a dictionary and that are thus to be approached with “‘great caution’” (Stennett v. Miller (2019) 34 Cal.App.5th 284, 293, fn. 4; MacKinnon v. Truck Ins. Exchange (2003) 31 Cal.4th 635, 649). More to the point, the City’s proffered authority in no sense overrides the considerations we have found to be determinative with respect to
Second, the City argues that there are downsides to defining
is the potential for a public entity to manipulate that date by advancing or delaying the date of publication (even within the discretion legally granted to the entity under its governing law). Indeed, the City in this very case calculated the effective date of the 2017 Ordinance twice to select an effective date that it believed would satisfy
B. Initial adoption versus final adoption
As between the date that a public entity initially adopts a resolution and the date it finally adopts it,
Rutgard offers one argument in favor of its view that
ordinance is adopted: It requires a mayoral concurrence or, failing that, a three-fourths override vote of the City Council.
III. To What Law Does Section 1245.245 Look In Assessing Whether A Public Entity’s Resolutions Are Finally Adopted?
Because
First,
Second,
are subject to the general law of the state, cities with charters (and, to a lesser extent, counties with charters) have “‘home rule’” authority to opt out of the general law and follow their own law as to the “‘municipal affairs’” governed by their charters. (First Street Plaza Partners v. City of Los Angeles (1998) 65 Cal.App.4th 650, 660 (First Street); State Building & Construction Trades Council of California v. City of Vista (2012) 54 Cal.4th 547, 556;
IV. When Is A Resolution Finally Adopted Under The Los Angeles City Charter?
Because we have concluded that
The City is a charter city that has invoked its constitutional “home rule” authority over municipal affairs. (L.A.
City Charter (Charter), vol. I, art. I, § 101 [so declaring]; First Street, supra, 65 Cal.App.4th at p. 661 [so noting].)
The City’s charter “vests” the City Council with “[a]ll legislative power” to be “exercised by [enacting] ordinance[s],” but makes that power “subject to the power of veto by the Mayor.” (Charter, vol. I, art. II, § 240.) The Charter goes on to specify the resulting “[p]rocedure for [a]doption of [o]rdinances” in a section of the Charter so entitled. (Id., § 250.) The first step is for the City Council to “pass[]” an ordinance. (Id., § 250, subd. (a).) The next step is for the Mayor either (1) to “approv[e]” the ordinance, by signing it or by taking no action for 10 days after the ordinance is presented to him, or (2) to “veto” the ordinance. (Id., § 250, subd. (b).) If the Mayor vetoes the ordinance, the final step is for the City Council to override that veto with a greater vote (two-thirds if a majority was required to pass the ordinance, and three-fourths if two-thirds or more was required). (Id., § 250, subd. (c).) The Charter elsewhere explains that an ordinance that is “finally adopted” does not become “effective” until 31 days after it is “publi[shed]” or posted for 10 days unless the ordinance qualifies for immediate effectiveness. (Id., §§ 251-253; L.A. Admin. Code, § 2.13.)
Under the City’s charter, an ordinance is “finally adopted” once it has passed the City Council and either (1) been approved by the Mayor or (2) if not approved, passed by a second, override vote of the City Council. The Charter labels this entire process—not just the first step of City Council initially passing the ordinance—under the heading of “Procedure for Adoption of Ordinances” (Charter, vol. I, art. II, § 250), and this heading is entitled to “considerable weight.” (People v. Hull (1991) 1 Cal.4th 266, 272 [“‘“section headings“’” “‘are
weight’” “‘in determining legislative intent’” (citation omitted)].) What is more, an ordinance is finally adopted under the City’s charter before it becomes effective. Section 251 of the Charter explicitly distinguishes between the “final[] adopt[ion]” of an ordinance and when it “take[s] effect.” (Charter, vol. I, art. II, § 251.) Indeed, our Supreme Court recognized as much when interpreting a preceding version of the City’s charter that used identical language. (Solomon v. Alexander (1911) 161 Cal. 23, 26 [“‘finally adopted’ . . . does not mean taking effect of the ordinance by publication.“].) Nor is the distinction between an ordinance’s adoption and its effective date unique to the City’s charter: Even the general law applicable to non-charter cities (and that has no mayoral component) draws a similar distinction between adoption and effective date. (Compare
Rutgard argues that no matter what the Charter might say about when an ordinance is “adopted” or “finally adopted,” the City officials in this case treated the 2007 Ordinance as being “adopted” on May 29, 2007, and were otherwise sloppy in referring to when that ordinance was “passed,” “approved” or “adopted.” In support of this argument, Rutgard points to a May 2015 motion by one member of the City Council referring to the 2007 Ordinance as being “approved” on May 27, 2007 (a date that is, itself, off by two days); a subsequently prepared draft for the 2017 Ordinance refers to the 2007 Ordinance as being “approved” on that date as well. This is irrelevant. A single Council member does not purport to speak for the entire City (Myers v. Philip
Morris Companies, Inc. (2002) 28 Cal.4th 828, 845 [“single legislator” does not “reflect . . . the views . . of the Legislature as a whole“]), and even if he did, his misstatement or misapprehension regarding when an ordinance is “finally adopted” under the Charter does not somehow amend the Charter in this regard. Nor do his statements create any estoppel, as the City’s error was to its own detriment and Rutgard has accordingly failed to allege or substantiate any detrimental reliance. (Long Beach v. Mansell (1970) 3 Cal.3d 462, 494; Penn-Co v. Board of Supervisors (1984) 158 Cal.App.3d 1072, 1081.) The same is true for the imprecise language regarding the 2007 Ordinance that is littered throughout the administrative record.
V. Application
Under the law as we have construed it and the undisputed facts, the 2017 Ordinance is not timely under
DISPOSITION
The judgment is affirmed. Rutgard is entitled to his costs on appeal.
CERTIFIED FOR PUBLICATION.
HOFFSTADT, J.
We concur:
ASHMANN-GERST, Acting P. J.
CHAVEZ, J.
Notes
Although Rutgard’s petition sought relief against the City and the City Council, the City responded that the City Council is “not a separate legal entity from the City” and the trial court ultimately entered judgment against the City alone.
