Spokane County v. Eastern Washington Growth Management Hearing Board ( 2013 )


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  •                                                                        FILED
    SEPT. 10, 2013
    In the Office of the Clerk of Court
    W A State Court of Appeals, Division III
    IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON
    DIVISION THREE
    SPOKANE COUNTY, a political                )         No. 30725-5-111
    subdivision of the State of Washington,    )
    Appellant,            )
    )
    V.                            )
    )
    EASTERN WASHINGTON GROWTH                  )         PUBLISHED OPINION
    MANAGEMENT HEARINGS BOARD, a               )
    statutory entity, and                      )
    KASI HARVEY-JARVIS, DAN                    )
    HENDERSON, LARRY KUNZ,                     )
    McGLADES, INC., NEIL MEMBREY, and          )
    NEIGHBORHOOD ALLIANCE OF                   )
    SPOKANE,                                   )
    )
    Respondents.           )
    )
    BROWN, J. - Spokane County appeals for the second time an Eastern
    Washington Growth Management Hearings Board decision that invalidated the County's
    planning actions in amendment 07-CPA-05. See Spokane County v. E. Wash. Growth
    Mgmt. Hr'gs Bd. (Spokane County I), 
    160 Wn. App. 274
    , 
    250 P.3d 1050
    , review denied,
    
    171 Wn.2d 1034
     (2011) (holding the hearings board had subject matter jurisdiction to
    review amendment 07-CPA-05). The hearings board decided the County had failed to
    comply with the Growth Management Act (GMA), chapter 36.70A RCW, and the State
    No. 30725-5-111
    Spokane County v. E. Wash. Growth Mgmt. Hr'gs Bd.
    Environmental Policy Act (SEPA), chapter 43.21 C RCW, when it adopted amendment
    07-CPA-05. The superior court affirmed on remand from Spokane County I.
    Although Spokane County I explained the hearings board's jurisdiction extended
    to both the comprehensive plan amendment and the concurrent rezone, the County
    asserts the hearings board lacks jurisdiction over the rezone. Specifically, the County
    contends the hearings board lacked authority to review the rezone because it is a site-
    specific land use decision within the superior court's exclusive jurisdiction under the
    Land Use Petition Act (LUPA), chapter 36.70C RCW. We again reject this contention
    because the rezone was not authorized by the then-existing comprehensive plan, but
    rather implements the comprehensive plan amendment, over which the hearings board
    had jurisdiction. Additionally, we reject the County's contentions that the hearings
    board's decision fails to accord proper deference, lacks substantial evidence,
    erroneously interprets and applies the law, and is arbitrary and capricious. Accordingly,
    we affirm.
    FACTS
    In December 2004, McGlades LLC purchased a 4.2 acre land parcel in Spokane
    County, on which the prior owners had operated a produce store that did not conform to
    the property's Urban Reserve zone designation. In June 2005, McGlades obtained
    building and restaurant permits, and expanded its nonconforming use into a market and
    bistro. McGlades soon applied unsuccessfully for a conditional use permit, requesting
    further expansion to include an asphalt driveway and drive-through espresso service,
    asphalt parking lot with spaces for 39 vehicles, outdoor dining and entertainment with
    2
    No. 30725-5-111
    Spokane County v. E. Wash. Growth Mgmt. Hr'gs Bd.
    seating for 64 patrons, and on-site alcohol consumption. McGlades then proposed
    amendments to the County's comprehensive plan map and zoning map that would
    change the property's comprehensive plan category and zone designation to Limited
    Development Area (Commercial). In July 2006, while the County contemplated the
    proposal, McGlades obtained a temporary use permit and presumably began
    expansion. But McGlades soon closed its business when the temporary use permit
    expired in January 2007. McGlades does not participate in this second appeal. The
    facts are unchanged from Spokane County I, 160 Wn. App. at 278-80.
    In September 2007, the County issued a SEPA environmental checklist and
    corresponding determination of nonsignificance for McGlades's proposal and seven
    others. The County concluded SEPA did not require environmental impact statements
    because the proposals presented "no probable significant adverse impacts."
    Administrative Record (AR) at 59, 63. Specifically, the County characterized the
    proposals as nonproject actions, leaving much of the required environmental analysis
    "[t]O be determined if site specific developments are proposed." AR at 43. Neighboring
    landowners Dan Henderson, Larry Kunz, and Neil Membrey unsuccessfully appealed
    the County's threshold determination to the County Hearing Examiner.
    On December 21, 2007, the Board of County Commissioners passed Resolution
    07-1096, adopting McGlades's proposal along with seven others during the annual
    comprehensive plan amendment cycle. The resolution incorporated McGlades's
    proposal as amendment 07 -CPA-05. Neighboring landowners Kasi Harvey-Jarvis, Dan
    Henderson, Larry Kunz, and Neil Membrey. along with the Neighborhood Alliance of
    3
    No. 30725-5-111
    Spokane County v. E. Wash. Growth Mgmt. Hr'gs Bd.
    Spokane (collectively the Neighbors), successfully appealed the resolution to the
    hearings board. The hearings board decided (1) amendment 07-CPA-05 designated a
    new Limited Area of More Intensive Rural Development (LAMIRD) without observing
    applicable GMA requirements, (2) the environmental checklist was inadequate under
    SEPA because it did not fully disclose or carefully consider amendment 07-CPA-05's
    probable long-term effects, and (3) amendment 07-CPA-05 is invalid because its
    continued validity would substantially interfere with fulfilling the GMA's goals of
    promoting urban growth, reducing sprawl, and protecting the environment.
    The superior court reversed the hearings board's decision upon the County's
    appeal and this court reversed the superior court's decision upon the Neighbors' appeal.
    Spokane County 1,
    160 Wn. App. 274
    . On remand, the superior court affirmed the
    hearings board's decision. The County again appealed to this court.
    REVIEW STANDARD
    We review a hearings board decision under the Administrative Procedure Act
    (APA) , chapter 34.05 RCW. Feil v. E. Wash. Growth Mgmt. Hr'gs Bd., 
    172 Wn.2d 367
    ,
    376,
    259 P.3d 227
     (2011); see RCW 34.05.510. We apply APA standards directly to
    the hearings board record, performing the same function as the superior court. City of
    Redmond v. Cent. Puget Sound Growth Mgmt. Hr'gs Bd., 
    136 Wn.2d 38
    , 45,
    959 P.2d 1091
     (1998); see RCW 34.05.526. The party challenging the hearings board decision
    (here the County) bears the burden of proving it is invalid. RCW 34.05.570(1)(a). The
    decision is invalid if it suffers from at least one of nine enumerated infirmities. RCW
    34.05.570(3). We must grant relief from the decision if, as relevant here:
    4
    No. 30725-5-111
    Spokane County v. E. Wash. Growth Mgmt. Hr'gs Bd.
    (b) The order is outside the statutory authority or jurisdiction of the
    agency conferred by any provision of law;
    (c) The agency has engaged in unlawful procedure or decision-making
    process, or has failed to follow a prescribed procedure;
    (d) The agency has erroneously interpreted or applied the law;
    (e) The order is not supported by evidence that is substantial when
    viewed in light of the whole record ... ; [or]
    (0 The order is arbitrary or capricious.
    RCW 34.05.570(3)(b)-(e), (i).
    Our review is de novo under RCW 34.05.570(3)(b) through (d), determining
    whether the decision contains a legal error. Kittitas County v. E. Wash. Growth Mgmt.
    Hr'gs Bd., 
    172 Wn.2d 144
    , 155,
    256 P.3d 1193
     (2011). We accord a hearings board's
    interpretation of the GMA "substantial weight." King County v. Cent. Puget Sound
    Growth Mgmt. Hr'gs Bd., 
    142 Wn.2d 543
    , 553,
    14 P.3d 133
     (2000). But the
    interpretation does not bind us. City of Redmond, 136 Wn.2d at 46.
    We apply the substantial evidence review standard to challenges under RCW
    34.05.570(3)(e), determining whether there exists '''a sufficient quantity of evidence to
    persuade a fair-minded person of the truth or correctness of the order.'" City of
    Redmond, 136 Wn.2d at 46 (quoting Callecod v. Wash. State Patrol, 
    84 Wn. App. 663
    ,
    673,
    929 P.2d 510
     (1997». We view the evidence "in the light most favorable to ... 'the
    party who prevailed in the highest forum that exercised fact-finding authority. '" City of
    Univ. Place v. McGuire, 
    144 Wn.2d 640
    , 652,
    30 P.3d 453
     (2001) (quoting State ex reI.
    Uge & Wm. B. Dickson Co. v. County of Pierce, 
    65 Wn. App. 614
    , 618,
    829 P.2d 217
    (1992». Doing so "'necessarily entails accept[ing] the factfinder's views regarding the
    5
    No. 30725-5-111
    Spokane County v. E. Wash. Growth Mgmt. Hr'gs Bd.
    credibility of witnesses and the weight to be given reasonable but competing
    inferences.'" 
    Id.
     (quoting Lige & Wm. B. Dickson Co., 65 Wn. App. at 618).
    We apply the arbitrary and capricious review standard to challenges under RCW
    34.05.570(3)(i), determining whether the decision constitutes '''willful and unreasoning
    action, taken without regard to or consideration of the facts and circumstances
    surrounding the action.'" City of Redmond, 136 Wn.2d at 46-47 (quoting Kendall v.
    Douglas, Grant, Lincoln & Okanogan Counties Pub. Hosp. Dist. No.6, 
    118 Wn.2d 1
    , 14,
    
    820 P.2d 497
     (1991». '''Where there is room for two opinions, an action taken after due
    consideration is not arbitrary and capricious even though a reviewing court may believe
    it to be erroneous.'" Id. at 47 (quoting Kendall, 
    118 Wn.2d at 14
    ).
    ANALYSIS
    A. law of the Case
    The Neighbors argue Spokane County I precludes the County's contention that
    the hearings board lacked subject matter jurisdiction over the rezone. The County
    responds Spokane County I solely decided the hearings board had jurisdiction over the
    comprehensive plan amendment. We agree with the Neighbors but, as explained
    below, we choose to clarify the principles we established in Spokane County I.
    "The law of the case doctrine provides that once there is an appellate court
    ruling, its holding must be followed in all of the subsequent stages of the same
    litigation." State v. Schwab, 
    163 Wn.2d 664
    ,672, 
    185 P.3d 1151
     (2008) (citing
    Roberson v. Perez, 
    156 Wn.2d 33
    , 41, 
    123 P.3d 844
     (2005». Thus, '''questions
    determined on appeal, or which might have been determined had they been presented,
    6
    No. 30725-5-111
    Spokane County v. E. Wash. Growth Mgmt. Hr'gs Bd.
    will not again be considered on a subsequent appeal jf there is no substantial change in
    the evidence. '" Folsom v. County of Spokane, 
    111 Wn.2d 256
    , 263, 
    759 P.2d 1196
    (1988) (quoting Adamson v. Traylor, 
    66 Wn.2d 338
    , 339,
    402 P.2d 499
     (1965». We
    retain discretion on whether to apply the doctrine:
    The appellate court may at the instance of a party review the propriety of
    an earlier decision of the appellate court in the same case and, where
    justice would best be served, decide the case on the basis of the appellate
    court's opinion of the law at the time of the later review.
    RAP 2.5(c)(2).
    In Spokane County I, the superior court ruled the hearings board lacked
    jurisdiction to review the comprehensive plan amendment and concurrent rezone
    because they together constituted a site-specific land use decision within the superior
    court's exclusive jurisdiction under LUPA. 160 Wn. App. at 280. "The Neighbors sought
    this court's relief, contending "the change here, site specific or not, amounted to an
    amendment of the County's comprehensive plan and therefore review was properly with
    the Hearings Board" under the GMA. Id. McGlades responded "this was a site-specific
    rezone over which the Hearings Board had no jurisdiction." Id. The County deferred to
    McGlades's argument on this issue. Resp't Spokane County's Resp. Br. at 5, Spokane
    County I, 
    160 Wn. App. 274
     (No. 28350-0-111). We reversed the superior court and
    affirmed the hearings board, reasoning:
    Growth management hearings boards have exclusive authority to rule
    on challenges alleging that a governmental agency is not in compliance
    with the requirements of the GMA. The hearings boards have jurisdiction
    to review petitions challenging whether a county's comprehensive plan,
    development regulations, and permanent amendments to the plan comply
    with the GMA. A hearings board does "not have jurisdiction to decide
    7
    No. 30725-5-111
    Spokane County v. E. Wash. Growth Mgmt. Hrgs Bd.
    challenges to site-specific land use decisions because site-specific land
    use decisions do not qualify as comprehensive plans or development
    regulations...
    Site-specific rezones authorized by an existing comprehensive plan
    are treated differently from amendments to comprehensive plans or
    development regulations. [LUPA1 governs site-specific land use decisions
    and the superior court has exclusive jurisdiction over petitions that
    challenge site-specific land use decisions. However, "[t1he superior court
    may decide only whether a site-specific land use decision complies with a
    comprehensive plan and/or development regulation," not whether the
    rezone complies with the GMA. LUPA does not apply to local land use
    decisions "that are subject to review by a quasi-judicial body created by
    state law, such as ... the growth management hearings board."
    The GMA does not make a distinction between site-specific and
    general comprehensive plan map amendments. Nor does the GMA
    recognize a single reclassification approach of "site specific
    Comprehensive Plan Maps," urged by McGlades. The Hearings Board
    had jurisdiction to review the petition.
    We ... reverse the decision of the superior court ruling that the
    Eastern Washington Growth Management Hearings Board did not have
    jurisdiction over the comprehensive plan amendment.
    
    Id. at 280-81, 283, 286
     (second alteration and first omission in original) (emphasis
    added) (citations omitted).
    In sum, Spokane County I held the hearings board had GMA authority to
    consider the Neighbors' petition. Because the Neighbors' petition alleged "Spokane
    County unlawfully amend[ed1 the Spokane County Comprehensive Plan and County
    Zoning map," AR at 1 (emphasis added), the Spokane County I court explained the
    hearings board had subject matter jurisdiction to review both the comprehensive plan
    amendment and concurrent rezone under the GMA, thereby rejecting McGlades's site-
    specific rezone arguments. Contrary to law of the case principles, the County again
    contends, as did McGlades in Spokane County I, that the hearings board lacked
    8
    No. 30725-5-111
    Spokane County v. E. Wash. Growth Mgmt. Hrgs Bd.
    jurisdiction to review the rezone because it is a site-specific land use decision within the
    superior court's exclusive jurisdiction under LUPA. Even so, we exercise our discretion
    to further clarify the rule we established in Spokane County I.
    B. Jurisdiction
    The issue is whether the hearings board had subject matter jurisdiction to review
    amendment 07-CPA-05's rezone under the GMA. The County contends the rezone is
    within the superior court's exclusive jurisdiction under LUPA. We review the hearings
    board's assertion of jurisdiction de novo. RCW 34.05.570(3)(b); Kittitas County, 172
    Wn.2d at 155.
    Certain local governments like Spokane County must "adopt a comprehensive
    plan under [the GMA] and development regulations that are consistent with and
    implement the comprehensive plan." RCW 36.70A.040(3)(d), (4)(d), (5)(d). If a county
    amends its comprehensive plan, it must concurrently adopt or amend consistent
    implementing development regulations. WAC 365-196-805(1). A comprehensive plan
    is a county's "generalized coordinated land use policy statement." RCW 36.70A.030(4).
    Development regulations are a county's "controls placed on development or land use
    activities ... , including ... zoning ordinances." RCW 36.70A.030(7). But a "decision
    to approve a project permit application" is not a development regulation, even if it
    appears in a legislative resolution or ordinance. Id. Instead, a project permit approval is
    a "land use decision" under LUPA. RCW 36.70C.020(2)(a). Project permit applications
    include proposals for "site-specific rezones authorized by a comprehensive plan" but
    9
    No. 30725-5-111
    Spokane County v. E. Wash. Growth Mgmt. Hr'gs Bd.
    exclude proposals for "the adoption or amendment of a comprehensive plan. .. or
    development regulations." RCW 36.70B.020(4).
    Regional hearings boards have exclusive jurisdiction to review petitions alleging
    a county did not comply with the GMA in adopting or amending its comprehensive plan.
    or development regulations. 1 Former RCW 36.70A.280(1)(a) (2003); former RCW
    36.70A.290(2) (1995); Somers v. Snohomish County, 
    105 Wn. App. 937
    , 945,
    21 P.3d 1165
     (2001). Additionally, hearings boards may review petitions alleging a county did
    not comply with SEPA in adopting or amending its comprehensive plan or development
    regulations. Former RCW 36.70A.280(1)(a), .290(2). But hearings boards "do not have
    jurisdiction to decide challenges to site-specific land use decisions because [those]
    decisions do not qualify as comprehensive plans or development regulations." Woods
    v. Kittitas County, 
    162 Wn.2d 597
    , 610,
    174 P.3d 25
     (2007); see RCW 36.70A.030(4),
    (7); RCW 36.70B.020(4); RCW 36.70C.020(2){a). Instead, the superior court has
    exclusive jurisdiction under LUPA to review site-specific land use decisions not subject
    to review by quasi-judicial agencies like hearings boards. Former RCW
    36.70C.030(1)(a)(ii) (2003); Woods, 
    162 Wn.2d at 610
    .
    Here, whether the hearings board had subject matter jurisdiction to review
    amendment 07-CPA-05's rezone depends on whether it is an amendment to a
    development regulation under the GMA or a project permit approval under LUPA.
    Woods, 
    162 Wn.2d at 610
    ; see RCW 36.70A.030(7); RCW 36.70B.020(4). The rezone
    1 The Eastern Washington Growth Management Hearings Board has jurisdiction
    over such petitions arising from counties "east of the crest of the Cascade Mountains,"
    including Spokane County. Former RCW 36.70A.250(1){a) (1994).
    10
    No. 30725-5-111
    Spokane County v. E. Wash. Growth Mgmt. Hr'gs Bd.
    was certainly site specific. See Woods, 
    162 Wn.2d at
    611 n.7 (stating a site-specific
    rezone is a change in the zone designation of a "'specific tract'" at the request of
    '''specific parties'" (quoting Cathcarl-Maltby-Clearview Cmty. Council v. Snohomish
    County, 
    96 Wn.2d 201
    ,212,
    634 P.2d 853
     (1981))). But the parties dispute whether the
    rezone was or needed to be "authorized by a comprehensive plan." RCW
    36.70B.020(4).2
    Under RCW 36.70B.020(4), a site-specific rezone is a project permit approval
    solely if "authorized by a comprehensive plan"; otherwise, it is "the adoption or
    amendment of a ... development regulation[]." We must interpret this language so as
    to give it meaning, significance, and effect. See In re Parentage ofJ.M.K., 
    155 Wn.2d 374
    ,393, 
    119 P.3d 840
     (2005) (stating a court must not "simply ignore" express terms
    when interpreting a statute); State ex rei. Baisden v. Preston, 
    151 Wash. 175
    , 177,
    275 P. 81
     (1929) (stating a court must interpret a statute as a whole so that, if possible, '''no
    clause, sentence, or word shall be superfluous, void, or insignificant'" (quoting Wash.
    Mkt. Co. v. Hoffman, 
    101 U.S. 112
    , 115-16,
    25 L. Ed. 782
     (1879))); Murray v. Dep't of
    Labor & Indus., 
    151 Wash. 95
    , 102, 
    275 P. 66
     (1929) (a court must, if possible, interpret
    a statute so as to give every word or phrase "meaning" as well as "significance and
    effect" (internal quotation marks omitted)). As we noted in Spokane County I, to be
    "authorized by a comprehensive plan" within the meaning of RCW 36.70B.020(4), the
    rezone had to be "allowed by an existing comprehensive plan." 160 Wn. App. at 281-83
    2 We address the same dispute in a similar case with consistent reasoning. See
    Kittitas County v. Kittitas County Conservation Coal., No. 30728-0-111 (Wash. Ct. App.
    Aug. 13, 2013).
    11
    No. 30725-5-111
    Spokane County v. E. Wash. Growth Mgmt. Hr'gs Bd.
    (emphasis added); see also Woods, 
    162 Wn.2d at
    612 n.7, 613; Wenatchee Sportsmen
    Ass'n v. Chelan County, 
    141 Wn.2d 169
    , 179-80,
    4 P.3d 123
     (2000).
    The County argues it initially sought a site-specific rezone of McGlades's
    property but, under local zoning codes, the rezone was not possible without changing
    the property's existing comprehensive plan category from Urban Reserve to Limited
    Development Area (Commercial). The County explains it made the necessary change
    by amending the comprehensive plan and concurrently rezoning the property.
    Nonetheless, the County contends the rezone was "separate and distinct" from the
    comprehensive plan amendment. Appellant Spokane County's Opening Br. at 11. We
    disagree. Notably, the County concedes the rezone required a comprehensive plan
    amendment to take effect. This inexorably intertwined the rezone and the
    comprehensive plan amendment, making them interdependent and putting them in the
    same basket for hearings board review. In other words, the rezone was premised on
    and carried out the comprehensive plan amendment. Therefore, the rezone is not a
    project permit approval under LUPA because the then-existing comprehensive plan did
    not authorize it. Instead the rezone is an amendment to a development regulation
    under the GMA because it implements the comprehensive plan amendment. Thus, the
    hearings board's decision is within its statutory authority. See RCW 34.05.570(3)(b).
    Dictum in Coffey v. City of Walla Walla, 
    145 Wn. App. 435
    ,
    187 P.3d 272
     (2008),
    does not require a different conclusion. There, the city amended its comprehensive
    plan but did not rezone the property. Id. at 438. The Coffey court held the superior
    court lacked subject matter jurisdiction to review the comprehensive plan amendment
    12
    No. 30725-5-111
    Spokane County v. E. Wash. Growth Mgmt. Hr'gs Bd.
    under LUPA because the hearings board had exclusive jurisdiction to do so under the
    GMA. 	 Id. at 441. The Coffey court continued,
    It is not uncommon for those hoping to develop property to seek both a
    comprehensive plan amendment and a rezone of property in the same
    proceeding. Anyone seeking to challenge both aspects of a ruling
    granting both requests would by statute have to appeal to two entities: the
    [hearings board] for the comprehensive plan amendment and superior
    court for the rezone.
    Id. at 442. This statement was unnecessary to the Coffey court's holding because the
    city amended its comprehensive plan but did not rezone the property. Additionally, this
    statement is true solely if a rezone is site specific and authorized by a then-existing
    comprehensive plan. In making this statement, the Coffey court did not consider
    whether a rezone that implements a comprehensive plan amendment can be an
    amendment to a development regulation.
    Considering all, we hold a site-specific rezone is a project permit approval under
    LUPA if it is authorized by a then-existing comprehensive plan and, by contrast, is an
    amendment to a development regulation under the GMA if it implements a
    comprehensive plan amendment. In sum, the hearings board had subject matter
    jurisdiction to review amendment 07 -CPA-05's rezone for· compliance with both the
    GMA and SEPA. See former RCW 36.70A.280(1)(a), .290(2).
    C. Hearings Board Decisions
    The issue is whether the hearings board erred by invalidating amendment 07­
    CPA-05 on grounds the County did not comply with the GMA or SEPA in adopting it.
    We review the hearings board's factual findings for substantial evidence, legal
    13
    No. 30725-5-111
    Spokane County v. E. Wash. Growth Mgmt. Hr'gs Bd.
    conclusions de novo, and order for arbitrariness or capriciousness. RCW
    34.05.570(3)(d)-(e), (i); Kittitas County, 172 Wn.2d at 155; City of Redmond, 136 Wn.2d
    at 46-47.
    A hearings board may decide a petition alleging a county did not comply with the
    GMA or SEPA in adopting or amending its comprehensive plan or development
    regulations. Former RCW 36.70A.280(1)(a), .290(2). The petitioner (here the
    Neighbors) bears the burden of proving noncompliance. RCW 36.70A.320(2). But a
    county has "broad discretion in adapting the requirements of the GMA to local realities."
    Quadrant Corp. v. Cent. Puget Sound Growth Mgmt. Hr'gs Bd., 
    154 Wn.2d 224
    , 236,
    
    110 P.3d 1132
     (2005); see former RCW 37.70A.320(1) (1997). Thus, a hearings board
    must presume validity and find compliance unless the county's planning action is
    "clearly erroneous in view of the entire record before the board and in light of the goals
    and requirements of [the GMA]." RCW 36.70A.320(1), (3). A county's planning action
    is clearly erroneous if it leaves a hearings board with a "'firm and definite conviction that
    a mistake has been committed.'" King County, 142 Wn.2d at 552 (quoting Dep't of
    Ecology v. Pub. Util. Dist. No.1, 
    121 Wn.2d 179
    ,201,
    849 P.2d 646
     (1993)).
    Where a hearings board finds noncompliance with the GMA or SEPA, it may
    wholly or partially invalidate the county's planning action if "continued validity ... would
    substantially interfere with the fulfillment of the goals of [the GMA]." Former RCW
    36.70A.302(1) (1997). The GMA's goals include, as relevant here:
    (1) Urban growth. Encourage development in urban areas where
    adequate public facilities and services exist or can be provided in an
    efficient manner.
    14
    No. 30725-5-111
    Spokane County v. E. Wash. Growth Mgmt. Hr'gs Bd.
    (2) Reduce sprawl. Reduce the inappropriate conversion of
    undeveloped land into sprawling, low-density development.
    (10) Environment. Protect the environment and enhance the state's
    high quality of life, including air and water quality, and the availability of
    water. ...
    RCW 36.70A020(1)-(2), (10). On appropriate facts, SEPA noncompliance may
    substantially interfere with fulfilling the GMA's environmental protection goal. Davidson
    SerIes & Assocs. v. Cent. Puget Sound Growth Mgmt. Hr'gs Bd., 
    159 Wn. App. 148
    ,
    158,
    244 P.3d 1003
     (2010); see WASH. STATE DEP'T OF ECOLOGY, STATE ENVIRONMENTAL
    POLICY ACT HANDBOOK § 7, at 75 (1998 & Supp. 2003).
    We begin with GMA noncompliance. The County challenges the hearings
    board's decision that amendment 07-CPA-05 designated a new LAMIRD without
    observing applicable GMA requirements. A comprehensive plan amendment must
    "conform to [the GMA]." RCW 36.70A130(1)(d). But "the GMA is not to be liberally
    construed." Woods, 
    162 Wn.2d at
    612 & n.8, 614 (citing Skagit Surveyors & Eng'rs,
    LLC v. Friends of Skagit County, 
    135 Wn.2d 542
    , 565, 
    958 P.2d 962
     (1998». Thus, a
    comprehensive plan must obey the GMA's clear mandates. See Thurston County v. W
    Wash. Growth Mgmt. Hr'gs Bd., 
    164 Wn.2d 329
    , 341-42,
    190 P.3d 38
     (2008). A newly
    adopted or amended development regulation must be "consistent with and implement
    the comprehensive plan." RCW 36.70A040(3)(d), (4)(d), (5)(d); RCW
    36.70A130(1)(d); see WAC 365-196-805(1). But "a comprehensive plan is a 'guide' or
    'blueprint' to be used when making land use decisions." Citizens for Mount Vernon v.
    City of Mount Vernon, 
    133 Wn.2d 861
    , 873, 
    947 P.2d 1208
     (1997) (quoting Barrie v.
    15
    No. 30725-5-111
    Spokane County v. E. Wash. Growth Mgmt. Hr'gs Bd.
    Kitsap County, 
    93 Wn.2d 843
    ,849,
    613 P.2d 1148
     (1980)). Thus, a development
    regulation need not strictly adhere but must "generally conform" to the comprehensive
    plan. 
    Id.
     (quoting Barrie, 
    93 Wn.2d at 849
    ).
    A county's comprehensive plan must contain "a rural element including lands that
    are not designated for urban growth." RCW 36.70A070(5); see WAC 365-196-425.
    This rural element "may allow for limited areas of more intensive rural development,
    including necessary public facilities and public services." RCW 36.70A070(5)(d); see
    WAC 365-196-425(6). A county must "minimize and contain the existing areas or uses
    of more intensive rural development" by adopting measures providing they "shall not
    extend beyond the[ir] logical outer boundary ... , thereby allowing a new pattern of low-
    density sprawl." RCW 36.70A070(5)(d)(iv); see WAC 365-196-425(6)(c)(i)(B)-(E).
    Existing areas "are clearly identifiable and contained [within] ... a logical boundary
    delineated predominately by the built environment." RCW 36.70A070(5)(d){iv); WAC
    365-196-425(6)(c){i)(C). In fixing a LAMIRD's logical outer boundary, the county must
    address "the need to preserve the character. of existing natural neighborhoods and
    communities," "physical boundaries, such as ... streets and highways, and land forms
    and contours," and "the prevention of abnormally irregular boundaries." RCW
    36.70A070(5)(d)(iv)(A)-(C); see WAC 365-196-425(6){c)(i)(D)(I)-(III).
    Consistent with these rules, the County's rural element allows for LAMIRDs in
    Policy RL.5.2:
    The intensification and infill of commercial ... areas shall be allowed in
    rural areas consistent with the following guidelines:
    16
    No. 3072S-S-I11
    Spokane County v. E. Wash. Growth Mgmt. Hr'gs Bd.
    a) The area is clearly identified and contained by logical
    boundaries, outside of which development shall not occur.
    These areas shall be deSignated and mapped within the Limited
    Rural Development category of the Comprehensive Plan map.
    b) The character of neighborhoods and communities is maintained.
    d) The intensification is limited to expansion of existing uses or infill
    or new uses within the deSignated area ....
    SPOKANE COUNTY COMPREHENSIVE PLAN (SCCP): RURAL LAND USE Policy RL.S.2(a)-(b).
    (d). The County designed this policy to advance Goal RL.Sa: "Provide for ...
    commercial uses in rural areas that serve the needs of rural residents and are
    consistent with maintaining rural character." SCCP: RURAL LAND USE Goal RL.Sa.
    Here, the hearings board decided the comprehensive plan amendment did not
    conform to RCW 36.70A070(S)(d)(iv)(A) through (C), while the concurrent rezone was
    not consistent with and did not implement Goal RL.Sa or Policy RL.S.2(a) through (b)
    and (d). The County raises four arguments in opposition.
    First, the County argues the hearings board erroneously found amendment 07­
    CPA-OS noncompliant with the GMA because it is based on the pre-amendment
    comprehensive plan and development regulations, which complied with the GMA
    However, an amendment's GMA compliance is independent from that of a pre-
    amendment planning document. See RCW 36.70A040(3)(d), (4)(d), (S)(d); RCW
    36.70A070; RCW 36.70A.130(1)(d). Notably, the hearings board found amendment
    07-CPA-OS failed to minimize and contain the intensification and infill of commercial use
    within the logical outer boundary the comprehensive plan originally fixed in 2001. This
    finding is a verity on appeal because the County did not assign error to it. See RAP
    17
    No. 30725-5-111
    Spokane County v. E. Wash. Growth Mgmt. Hr'gs Bd.
    10.3(g)-(h); Hilltop Terrace Homeowner's Ass'n v. Island County, 
    126 Wn.2d 22
    ,30,
    
    891 P.2d 29
     (1995). Indeed, a staff report to the county commissioners supports this
    finding, stating,
    The requested change from Urban Reserve to Limited Development Area
    (Commercial) is generally not consistent with Policy RL.5.2 [and, thus, the
    GMA].
    The Limited Development Area ... Commercial was designated south of
    Day Mt Spokane Road and adjacent to both side [sic] of Highway 2 based
    on existing land uses, zones, comprehensive planning policies and the
    public process that resulted in the adoption of the original GMA County
    Comprehensive Plan in November of 2001. If approved the Limited
    Development Area Commercial would be extended to the north side of
    Day Mt. Spokane Road and to property which is not fronting or adjacent to
    Limited Development Areas with actual 'frontage of Highway 2.
    AR at 553. Accordingly, the County's argument fails.
    Second, the County argues the hearings board erroneously interpreted GoaJ
    RL.5a and Policy RL.5.2 as requiring public necessity for McGlades's market and bistro
    because the GMA does not require such need and the comprehensive plan is a mere
    guide. But the GMA provides LAMIRDs may contain "necessary public facilities and
    public services." RCW 36.70A.070(5)(d). And, amendment 07-CPA-05 would not
    generally conform to the comprehensive plan if it provided commercial uses in rural
    areas regardless of local need. The County cannot escape its obligation to observe
    Goal RL.5a and Policy RL.5.2 by characterizing them as a mere guide.
    Third, the County argues the hearings board erroneously found no demonstrated
    public necessity for McGlades's market and bistro, considering the full-service
    restaurants existing nearby, because the community gave widespread support for the
    18
    No. 3072S-S-111
    Spokane County v. E. Wash. Growth Mgmt. Hr'gs Bd.
    business. But desires are different than needs. The County does not identify any
    evidence demonstrating public need. Instead, the County suggests public desire is
    enough because the GMA offers flexibility, ensuring community-oriented planning
    responsive to local circumstances. We do not reweigh the evidence. Even if we
    disagreed with the hearings board, it is a verity that amendment 07-CPA-OS established
    an improper outer LAMIRD boundary.
    Finally, the County argues the hearings board erroneously found McGlades's
    market and bistro disrupted the neighborhood's rural character because the business
    assimilated well in an increasingly urban area. But the County does not dispute the
    hearings board's assessment of increased traffic, noise, and lighting. Again, we do not
    reweigh the evidence. And again, even if we disagreed with the hearings board, it is a
    verity that amendment 07-CPA-OS established an improper outer LAMIRD boundary.
    In sum, the record shows the comprehensive plan amendment does not conform
    to the GMA, while the concurrent rezone is not consistent with and does not implement
    the comprehensive plan. A sufficient quantity of evidence exists to persuade a fair-
    minded person the County did not comply with the GMA in adopting amendment 07­
    CPA-OS. In reaching this decision, the hearings board correctly interpreted and applied
    the law upon thorough reasoning with due consideration for the facts. Therefore, the
    hearings board did not err in finding GMA noncompliance.
    We turn now to SEPA noncompliance. The County challenges the hearings
    board's decision that the environmental checklist was inadequate under SEPA because
    it did not fully disclose or carefully consider amendment 07-CPA-OS's probable long­
    19
    No. 30725-5-111
    Spokane County v. E. Wash. Growth Mgmt. Hr'gs Bd.
    term effects. Under SEPA, a county must include an environmental impact statement
    with any proposal the lead agency's responsible official decides would "significantly
    affect[] the quality of the environment." RCW 43.21C.030(2)(c); WAC 197-11-330(1).
    An agency must make this threshold determination where, as here, the proposal is an
    "action,,3 and is not "categorically exempt.,,4 Former WAC 197-11-310(1) (2003). The
    agency must use an environmental checklist to assist its analysis and must document
    its conclusion in a determination of significance or nonsignificance. Former WAC 197­
    11-315(1) (1995); WAC 197-11-340(1), -360(1).
    The agency must base its threshold determination on "information reasonably
    sufficient to evaluate the environmental impact of a proposaL" WAC 197-11-335. In
    GMA planning, the agency should tailor the "scope and level of detail of environmental
    review" to fit the proposal's specifics. WAC 197-11-228(2)(a). Thus, for a nonproject
    action, such as a comprehensive plan amendment or rezone, the agency must address
    the probable impacts of any future project action the proposal would allow. WASH.
    STATE DEP'T OF ECOLOGY, supra, § 4.1, at 66; see WAC 197-11-060(4)(c)-(d). The
    purpose of these rules is to ensure an agency fully discloses and carefully considers a
    proposal's environmental impacts before adopting it and "at the earliest possible stage."
    3 See WAC 197-11-704(2)(b)(ii). Specifically, amendment 07-CPA-05 is a
    nonproject action because it involves "[t]he adoption or amendment of comprehensive
    land use plans or zoning ordinances." Id.
    4 See RCW43.21C.229, .450; WAC 197-11-305, -800; SPOKANE COUNTY CODE
    11.10.070-.075, .180. Additionally, while a county may forego SEPA analysis if its
    comprehensive plan and development regulations "provide adequate analysis of and
    mitigation for the specific adverse environmental impacts of the project action," this
    exception does not apply to amendment 07 -CPA-05 because it is a nonproject action.
    RCW 43.21C.240(1); see also RCW 43.21C.240(2); WAC 197-11-158.
    20
    No. 30725-5-111
    Spokane County v. E. Wash. Growth Mgmt. Hr'gs Bd.
    King County v. Wash. State Boundary Review Bd., 
    122 Wn.2d 648
    , 663-64, 666,
    860 P.2d 1024
     (1993); see WAC 197-11-060(4)(c)-(d). An agency may not postpone
    environmentC,lI analysis to a later implementation stage if the proposal would affect the
    environment without subsequent implementing action. RICHARD L. SElTLE, THE
    WASHINGTON STATE ENVIRONMENTAL POLICY ACT § 13.01[1], at 13-15 to -16 (1987 &
    Supp. 2010); see WAC 197-11-060(5)(d){i)-{ii).
    Here, the hearings board found the County's checklist ignored the probable
    impacts of any future commercial development amendment 07 -CPA-05 would allow and
    improperly postponed environmental analysis to the project review stage. The County
    raises two arguments in opposition.
    First, the County argues the hearings board contradicted its later statement that
    future commercial development is speculative given the property's existing growth. This
    claimed inconsistency makes no difference because McGlades clearly intended to
    reopen and expand its market and bistro under the proposal. 5 And, the proposal would
    allow McGlades or its successors to replace the business with a variety of other
    commercial uses. 6 Either result could significantly affect environmental quality, as
    5   McGlades's application for a conditional use permit requested expansion to
    include an asphalt driveway and drive-through espresso service, asphalt parking lot with
    spaces for 39 vehicles, outdoor dining and entertainment with seating for 64 patrons,
    and on-site alcohol consumption. The hearing examiner noted this expansion "is likely if
    the site is rezoned." AR at 178. The hearing examiner clarified, "McGlades ... seeks
    to reopen the business, and to expand it under the [Limited Development Area
    (Commercial)] zone." AR at 172.
    6 The Limited Development Area (Commercial) zone designation allows taverns
    and pubs, theaters and performing arts centers, circuses, storage facilities, business
    complexes, financial institutions, vehicle repair shops, mortuary service centers, medical
    21
    No. 3072S-S-111
    Spokane County v. E. Wash. Growth Mgmt. Hrgs Bd.
    discussed below. Regardless, the hearings board properly recognized the checklist
    could not postpone environmental analysis to the project review stage because
    amendment 07-CPA-OS approved the property's existing nonconforming use, thereby
    affecting the environment even if McGlades or its successors never pursue subsequent
    project action.
    Second, the County argues the hearings board undervalued the checklist's
    thorough contents. But the checklist failed to adequately address the proposal. Apart
    from reciting it in a background section with seven other comprehensive plan
    amendments and concurrent rezones, the checklist did not mention amendment 07­
    CPA-OS. Assuming this omission was a scrivener's error, the checklist still lacked
    required particularity. Though amendment 07-CPA-OS varied greatly from the other
    seven proposals, the checklist attempted to address them all with broad generalizations.
    The checklist did not tailor its scope or level of detail to address the probable impacts
    on, for example, water quality, resulting from amendment 07-CPA-OS specifically. While
    the property is near potable water wells in a Critical Aquifer Recharge Area with high
    susceptibility, the proposal could "allow an on-site [wastewater disposal] system that will
    fail thus resulting in the degradation of the local environment." AR at S62. Despite
    these concerns, the checklist repeated formulaic language postponing environmental
    analysis to the project review stage and assuming compliance with applicable
    standards. Thus, the checklist lacked information reasonably sufficient to evaluate the
    proposal's environmental impacts.
    service centers, and scientific research facilities. SPOKANE COUNTY ZONING CODE
    22
    No. 30725-5-111
    Spokane County v. E. Wash. Growth Mgmt. Hr'gs Bd.
    In sum, the record shows the County failed to fully disclose or carefully consider
    amendment 07-CPA-05's environmental impacts before adopting it and at the earliest
    possible stage. This is a sufficient quantity of evidence to persuade a fair-minded
    person the County did not comply with SEPA in adopting the proposal. In reaching this
    decision, the hearings board correctly interpreted and applied the law upon thorough
    reasoning with due consideration for the facts. Therefore, the hearings board did not err
    in finding SEPA noncompliance.
    We turn now to invalidity based on GMA and SEPA noncompliance. The County
    challenges the hearings board's determination that amendment 07-CPA-05 is invalid
    because its continued validity would substantially interfere with fulfilling the GMA's
    environmental protection goal. To fulfill this goal, the GMA requires a county to
    designate critical areas and adopt development regulations protecting them. RCW
    36.70A060(2), .070(5)(c)(iv), .170(1)(d); WAC 365-196-485(2), (3)(a), (c)-(d). Critical
    areas include "areas with a critical recharging effect on aquifers used for potable water."
    RCW 36.70A030(5)(b); WAC 365-196-200(5)(b). A county must use "the best available
    science in developing policies and development regulations to protect the functions and
    values of critical areas." RCW 36.70A172(1); WAC 365-196-485(1)(b), (3)(d).
    Here, the hearings board found by failing to comply with SEPA in adopting
    amendment 07-CPA-05, the County threatened a Critical Aquifer Recharge Area with
    high susceptibility and diSused the best available science for mitigating probable
    environmental impacts. This, the hearings board concluded, substantially interfered
    14.612.220.
    23
    No. 30725-5-111
    Spokane County v. E. Wash. Growth Mgmt. Hr'gs Bd.
    with fulfilling the GMA's environmental protection goal. The County argues the hearings
    board ignored the permit review McGlades's market and bistro underwent at each
    expansion in the years preceding the comprehensive plan amendment and concurrent
    rezone. But the County failed to adopt any such environmental analysis, incorporate it
    by reference, or include it by addendum. See WAC 197-11-600, -625 to -635. The
    mere existence of additional supporting documents cannot excuse the County's failure
    to include them in the planning process.
    The record shows the County's SEPA noncompliance threatened a Critical
    Aquifer Recharge Area with high susceptibility and disused the best available science
    for mitigating probable environmental impacts. This is a sufficient quantity of evidence
    to persuade a fair-minded person amendment 07-CPA-05's continued validity would
    substantially interfere with fulfilling the GMA's environmental protection goal. In
    reaching this decision, the hearings board correctly interpreted and applied the law
    upon thorough reasoning with due consideration for the facts. Therefore, the hearings
    board did not err in determining invalidity on SEPA grounds.
    Moreover, we note the hearings board additionally determined invalidity on GMA
    grounds, specifying that amendment 07-CPA-05's continued validity would substantially
    interfere with fulfilling the GMA's urban growth promotion and sprawl reduction goals.
    The County vaguely assigned error to this determination then abandoned the error
    claim by failing to argue it. See RAP 10.3(a)(6), (g)-(h); Howell v. Spokane & Inland
    Empire Blood Bank, 
    117 Wn.2d 619
    , 624,
    818 P.2d 1056
     (1991). Thus, the hearings
    board did not err in determining invalidity on GMA grounds.
    24
    No. 30725-5-111
    Spokane County v. E. Wash. Growth Mgmt. Hr'gs Bd.
    Considering a", the hearings board's decision is supported by substantial
    evidence in light of the whole record, does not erroneously interpret or apply the law,
    and is not arbitrary or capricious. See RCW 34.05.570(3)(d)-(e), (i). Therefore, we
    conclude the hearings board did not err by invalidating amendment 07-CPA-05.
    D. Deference
    The issue is whether the hearings board erred by failing to accord the County's
    planning actions proper deference. The County contends the hearings board engaged
    in an unlawful procedure or decision-making process, or failed to follow a prescribed
    procedure, by withholding such deference. We review the hearings board's procedures
    and decision-making processes de novo. RCW 34.05.570(3)(c); Kittitas County, 172
    Wn.2d at 155.
    A hearings board must defer to a county's planning action if it is consistent with
    the GMA's goals and requirements. Former RCW 36.70A.3201 (1997); Quadrant Corp.,
    
    154 Wn.2d at 238
    . GMA deference to county planning actions supersedes APA
    deference to administrative adjudications. Quadrant Corp., 
    154 Wn.2d at 238
    . Thus,
    we will not defer to a hearings board if it fails to accord a county the required deference.
    
    Id.
     But a hearings board accords a county the required deference by properly applying
    the GMA's clearly erroneous review standard. 
    Id.
    Here, the hearings board initially presumed the County's comprehensive plan
    amendment and concurrent rezone were valid but ultimately found them clearly
    erroneous in light of the entire record and the GMA's goals and requirements. Again,
    the hearings board's decision is supported by substantial evidence in light of the whole
    25
    No. 30725-5-111
    Spokane County v. E. Wash. Growth Mgmt. Hr'gs Bd.
    record, does not erroneously interpret or apply the law, and is not arbitrary or
    capricious. Thus, the hearings board properly applied the GMA's clearly erroneous
    review standard. See RCW 36:70A.320(1), (3); King County, 142 Wn.2d at 552. By
    doing so, the hearings board accorded the County's planning actions the required
    deference. See Quadrant Corp., 
    154 Wn.2d at 238
    . In sum, the hearings board did not
    engage in an unlawful procedure or decision-making process, or fail to follow a
    prescribed procedure. See RCW 34.05.570(3)(c).
    E. Attorney Fees and Costs
    The Neighbors request an award of attorney fees and costs, citing chapter 4.84
    RCW. The Regulatory Reform Act, RCW 4.84.370, does not authorize an award
    because it does not apply to the County's comprehensive plan amendment or
    concurrent rezone, and the Neighbors did not prevail before the county commissioners
    or hearing examiner. See Heller Bldg., LLC v. City of Bellevue, 
    147 Wn. App. 46
    , 64,
    
    194 P.3d 264
     (2008); Tugwell v. Kittitas County, 
    90 Wn. App. 1
    , 15,
    951 P.2d 272
    (1997). Likewise, the Equal Access to Justice Act, RCW 4.84.340 through .360, does
    not authorize an award because it does not apply against the hearings board. See
    Duwamish Valley Neighborhood Pres. Coal. v. Cent. Puget Sound Growth Mgmt. Hr'gs
    Bd., 
    97 Wn. App. 98
    , 100-01, 
    982 P.2d 668
     (1999). Therefore, we deny the Neighbors'
    request.
    26
    No. 30725-5-111
    Spokane County v. E. Wash. Growth Mgmt. Hr'gs Bd.
    Affirmed.
    WE CONCUR:
    Kulik, J.
    27
    

Document Info

Docket Number: 30725-5

Filed Date: 9/10/2013

Precedential Status: Precedential

Modified Date: 3/3/2016

Authorities (36)

Market Co. v. Hoffman , 25 L. Ed. 782 ( 1879 )

Woods v. Kittitas County , 162 Wash. 2d 597 ( 2007 )

Thurston County v. Western Washington Growth Management ... , 164 Wash. 2d 329 ( 2008 )

Feil v. Eastern Washington Growth Management Hearings Board , 172 Wash. 2d 367 ( 2011 )

Citizens for Mount Vernon v. City of Mount Vernon , 133 Wash. 2d 861 ( 1997 )

City of University Place v. McGuire , 144 Wash. 2d 640 ( 2001 )

Quadrant Corp. v. Central Puget Sound Growth Management ... , 154 Wash. 2d 224 ( 2005 )

Department of Ecology v. Public Utility District No. 1 , 121 Wash. 2d 179 ( 1993 )

Folsom v. County of Spokane , 111 Wash. 2d 256 ( 1988 )

Howell v. Spokane & Inland Empire Blood Bank , 117 Wash. 2d 619 ( 1991 )

Woods v. Kittitas County , 174 P.3d 25 ( 2007 )

Roberson v. Perez , 123 P.3d 844 ( 2005 )

State Ex Rel. Baisden v. Preston , 151 Wash. 175 ( 1929 )

Adamson v. Traylor , 66 Wash. 2d 338 ( 1965 )

Citizens for Mount Vernon v. Mount Vernon , 947 P.2d 1208 ( 1997 )

Barrie v. Kitsap County , 93 Wash. 2d 843 ( 1980 )

Hilltop Terrace Homeowner's Ass'n v. Island County , 126 Wash. 2d 22 ( 1995 )

Cathcart-Maltby-Clearview Community Council v. Snohomish ... , 96 Wash. 2d 201 ( 1981 )

Feil v. E. WASHINGTON GROWTH MGMT. HEARINGS , 259 P.3d 227 ( 2011 )

King County v. Central Puget Sound , 14 P.3d 133 ( 2000 )

View All Authorities »