Sprint PCS Assets, L.L.C. Ex Rel. Sprint Telephony PCS, LP v. City of Palos Verdes EstatesSprint PCS Assets, L.L.C. Ex Rel. Sprint Telephony PCS, LP v. City of Palos Verdes Estates
The City of Palos Verdes Estates (“City”) appeals the grant of summary judgment in favor of Sprint PCS Assets, L.L.C. (“Sprint”). We must decide whether the district court erred in concluding that the City violated the Telecommunications Act of 1996 (“TCA”), Pub.L. No. 104-104, 110 Stat. 56 (codified as amended in various sections of U.S.C. titles 15, 18, and 47), when it denied Sprint permission to construct two wireless telecommunications facilities in the City’s public rights-of-way. Specifically, we must decide (1) whether the City’s denial is supported by substantial evidence, as required by
I. FACTUAL AND PROCEDURAL BACKGROUND
The City is a planned community, about a quarter of which consists of public rights-of-way that were designed not only to serve the City’s transportation needs, but also to contribute to its aesthetic appeal. In 2002 and 2003, Sprint applied for permits to construct wireless telecommunications facilities (“WCF”) in the City’s public rights-of-way. The City granted eight permit applications but denied two others, which are at issue in this appeal. One of the proposed WCFs would be constructed on Via Azalea, a narrow residential street, and the other would be con
A City ordinance (“Ordinance”) provides that WCF permit applications may be denied for “adverse aesthetic impacts arising from the proposed time, place, and manner of use of the public property.” Palos Verdes Estates, Cal., Ordinances ch. 18.55.040(B)(1). Under the Ordinance, the City’s Public Works Director (“Director”) denied Sprint’s WCF permit applications, concluding that the proposed WCFs were not in keeping with the City’s aesthetics. The City Planning Commission affirmed the Director’s decision in a unanimous vote.
Sprint appealed to the City Council (“Council”), which received into evidence a written staff report that detailed the potential aesthetic impact of the proposed WCFs and summarized the results of a “drive test,” which confirmed that cellular service from Sprint was already available in relevant locations in the City. The Council also heard public comments and a presentation from Sprint’s representatives. The Council issued a resolution affirming the denial of Sprint’s permit applications. It concluded that a WCF on Via Azalea would disrupt the residential ambiance of the neighborhood and that a WCF on Via Valmonte would detract from the natural beauty that was valued at that main entrance to the City.
Denied permits by the Director, the Commission, and the Council, Sprint took its case to federal court, seeking a declaration that the City’s decision violated various provisions of the TCA. The district court concluded that the City’s decision was not supported by substantial evidence and thus violated
II. JURISDICTION AND STANDARD OF REVIEW
The district court exercised jurisdiction pursuant to
III. DISCUSSION
The tension between technological advancement and community aesthetics is nothing new. In an 1889 book that would become a classic in city planning literature, Vienna’s Camillo Sitte lamented:
[Tjhere still remains the question as to whether it is really necessary to purchase these [technological] advantages at the tremendous price of abandoning all artistic beauty in the layout of cities.The innate conflict between the picturesque and the practical cannot be eliminated merely by talking about it; it will always be present as something intrinsic to the very nature of things.
Camillo Sitte, City Planning According to Artistic Principles 110 (Rudolph Wittkower ed., Random House 1965) (1889).
The TCA attempts to reconcile this “innate conflict.” On the one hand, the statute is intended to “encourage the rapid deployment of new telecommunications technologies.” Pub.L. No. 104-104, 110 Stat. 56. On the other hand, it seeks “to preserve the authority of State and local governments over zoning and land use matters.”
T-Mobile USA,
Tree.
v. City of Anacortes,
A.
One of the limitations that the TCA places upon local governments is that “[a]ny decision ... to deny a request to place, construct, or modify personal wireless service facilities shall be in writing and supported by substantial evidence contained in a written record.”
1. The City’s decision was authorized by local law.
“[W]e must take applicable state and local regulations as we find them and evaluate the City decision’s evidentiary support (or lack thereof) relative to those regulations.”
MetroPCS,
i. California’s Constitution
The California Constitution authorizes local governments to “make and enforce within [their] limits all local, police, sanitary, and other ordinances and regulations not in conflict with general laws.”
Thus, the threshold issue is not, as Sprint argues and the district court apparently believed, whether the PUC authorizes the City to consider aesthetics in deciding whether to grant a WCF permit application, but is instead whether the PUC divests the City of its constitutional power to do so.
3
Therefore, the question
ii PUC
The City’s consideration of aesthetics in denying Sprint’s WCF permit applications comports with PUC
The absence of a conflict between the City’s consideration of aesthetics and PUC
These urban planning principles are applied in the City, where the public rights-of-way are the visual fabric from which neighborhoods are made. For example, the City’s staff report explains that Via Valmonte, which is adorned with an historic stone wall and borders a park, is “cherished for its rural character, and valued for its natural, unspoiled appearance, rich with native vegetation.” Meanwhile, Via Azalea is described as “an attractive streetscape” that creates a residential ambiance. That the “public use” of these rights-of-way encompasses more than just transit is perhaps most apparent from residents’ letters to the Director, which explained that they “moved to Palos Verdes for its [ajesthetics” and that they “count on this city to protect [its] unique beauty with the abundance of trees, the absence of sidewalks, even the lack of street lighting.”
Thus, there is no conflict between the City’s consideration of aesthetics in deciding to deny a WCF permit application and PUC
iii PUC§ 7901.1
Nor does the City’s consideration of aesthetics conflict with PUC § 7901.1’s statement that “municipalities shall have the right to exercise reasonable control as to the time, place, and manner in which roads, highways, and waterways are accessed.”
Aesthetic regulations are “time, place, and manner” regulations,
5
and the Califor
Our interpretation of California law is consistent with the outcome in
City of Anacortes,
in which we rejected a
Sprint warns that this conclusion will allow municipalities to run roughshod over WCF permit applications simply by invoking aesthetic concerns. However, our decision in no way relieves municipalities of the constraints imposed upon them by the TCA. A city that invokes aesthetics as a basis for a WCF permit denial is required to produce substantial evidence to support its decision, and, even if it makes that showing, its decision is nevertheless invalid if it operates as a prohibition on the provision of wireless service in violation of
2. The City’s decision was supported by such relevant evidence that a reasonable mind might accept as adequate.
“[W]hile the term ‘substantial evidence’ is not statutorily defined in the Act, the legislative history of the TCA explicitly states, and courts have accordingly held, that this language is meant to trigger ‘the traditional standard used for judicial review of agency decisions.’ ”
MetroPCS,
The City’s finding that the proposed WCFs would adversely affect its aesthetic makeup easily satisfies this standard. The Council reviewed propagation maps and mock-ups of the proposed WCFs and a report that detailed the aesthetic values at stake. It had the benefit of public comments and an oral presentation from Sprint’s personnel. From the entirety of the evidence, one could reasonably determine, as the City did, that the Via Azalea WCF would detract from the residential character of the neighborhood and that the Via Valmonte WCF would not be in keeping with the appearance of that main entrance to the City. Consequently, we find that the City’s decision was supported by substantial evidence, and we reverse the district court.
B.
The TCA provides that a locality’s denial of a WCF permit application “shall not prohibit or have the effect of prohibiting the provision of personal wireless services.”
The district court’s legal conclusion that Sprint established the existence
1. Significance of the Gap
“ ‘[Significant gap’ determinations are extremely fact-specific inquiries that defy any bright-line legal rule.” Id. at 733. Yet Sprint and the district court take a bare-bones approach to this inquiry. The district court simply declared, as a matter of fact and fiat, that there was “a significant gap” in Sprint’s coverage in the City. Sprint defends this factual finding on appeal, arguing that its presentation of radio frequency propagation maps was sufficient to establish a “significant gap” in coverage. We disagree.
Sprint’s documentation stated that the proposed WCFs would provide “good coverage” for .2 to .4 miles in various directions. However, it remains far from clear whether these estimates were relative to the coverage available from existing WCFs or to the coverage that would be available if there were no WCFs at all (i.e., if the existing WCFs were removed). In any event, that there was a “gap” in coverage is certainly not sufficient to establish that there was a “significant gap” in coverage. See id. at 733 n. 10 (“[T]he relevant service gap must be truly ‘significant .... ’ ”); id. at 733 (“The TCA does not guarantee wireless service providers coverage free of small ‘dead spots.... ’ ”).
The district court found that there was a “gap” in Sprint’s coverage but failed to analyze its legal significance. District courts have considered a wide range of context-specific factors in assessing the significance of alleged gaps.
See, e.g., Cellular Tel. Co. v. Zoning Bd. of Adjustment of the Borough of Ho-Ho-Kus,
We need not decide whether the TCA’s anti-prohibition language even covers situations, like that presented here, in which a telecommunications service provider seeks to replace existing WCFs, as contrasted with the more typical situation in which the provider seeks to construct new WCFs. It is sufficient to note that the record does not establish the obsolescence of the old facilities as a matter of uncontested fact. Sprint’s representatives not only failed to explain why the existing facilities were no longer usable, but they actually undermined that position by pointing out that those facilities were currently serving some four thousand residents and acknowledging at the public hearing that Sprint service was generally available in the City. Residents’ comments at the public hearing and the drive test results contained in the staff report submitted to the Council further illustrate that Sprint’s existing network was, at the very least, functional. Consequently, we reverse the grant of summary judgment in Sprint’s favor on its
C.
The district court also concluded that the City’s ordinance was “preempted by the Supremacy Clause, insofar as it conflicts with
IV. CONCLUSION
Because the City’s decision to deny Sprint’s application for a permit to construct two new WCFs was supported by substantial evidence and because disputed issues of material fact preclude a finding that the decision constituted a prohibition on the provision of wireless service, we REVERSE and REMAND.
Notes
. The district court did not have the benefit of our decision in
MetroPCS
when it issued its order granting Sprint summary judgment on its claims under
. During the pendency of this appeal, pursuant to Cal. R. Ct. 8.548(a), we requested that the California Supreme Court decide whether PUC
. Sprint urges us to approach the question differently, relying on language from
"Western Union Tel. Co. v. Hopkins,
[i]t is universally recognized that the state in its sovereign capacity has the original right to control all public streets and highways, and that except in so far as that control is relinquished to municipalities by the state, either by provision of the state constitution or by legislative act not inconsistent with the Constitution, it remains with the state legislature.
Id.
at 562. The defect in Sprint’s argument is that it contemplates a relinquishment of state sovereignty through statute only, thus turning a blind eye to the constitutional grant of power contained in
. We cite the legislative history only to put the statute in its historical context; we do not rely upon it to discern the statute’s meaning.
. In the First Amendment context, California courts have recognized that governments' aesthetic-based regulations fall within the rubric of "time, place, and manner” regulations.
See, e.g., Showing Animals Respect & Kindness v. City of W. Hollywood,
. Our conclusion that the language of PUC
The public access policies of this article shall be implemented in a manner that takes into account the need to regulate the time, place, and manner of public access depending on the facts and circumstances in each case including, but not limited to ... [t]he need to provide for the management of access areas so as to protect ... the aesthetic values of the area by providing for the collection of litter.
. We focus on the “effective prohibition" clause because the City has not adopted a "general ban” on wireless services.
See MetroPCS,
. We have adopted the “multiple provider rule,” which focuses the "significant gap” inquiry on the issue of whether a particular provider is prevented from filling a significant gap in its own service coverage; the availability of wireless service from other providers in the area is irrelevant for purposes of this analysis.
MetroPCS,
. During oral argument, Sprint’s counsel was unable to explain satisfactorily on what basis the district court found that the gap was significant. He acknowledged that there was a dispute as to the significance of the gap in Sprint’s coverage within the City, and he even conceded that he had seen nothing in the