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Reprinted
with the permission of LexisNexis. 114 Cal. App. 4th 689; 7 Cal. Rptr.
3d 868; 2003 Cal. App. LEXIS 1879; 2003 Cal. Daily Op. Service 10997; 2003
Daily Journal DAR 13864 SANTA TERESA
CITIZEN ACTION GROUP et al., Plaintiffs and Appellants, v. CITY OF SAN JOSE et al., Defendants and Respondents; SANTA CLARA
VALLEY WATER DISTRICT et al., Real Parties in Interest and Respondents. H024841 COURT OF APPEAL,
SIXTH DISTRICT, CALIFORNIA December 18, 2003,
Filed COUNSEL: Stephan C. Volker and Gretchen E. Dent for Plaintiffs
and Appellants. Richard Doyle, City Attorney, George Rios, Assistant City Attorney,
Joseph P. Diciuccio and Brian C. Hopper, Deputy City
Attorneys, for Defendants and Respondents. Roger Beers, Anthony Bennetti and Emily J. Cote
for Real Party in Interest and Respondent Santa Clara Valley Water District. William M. Chamberlain, Richard C. Ratliff and Kerry
Willis for California Energy Commission as Amicus Curiae on behalf of
Defendants and Respondents. Stoel
Rives, Anne E. Mudge, Christine W. Griffith,
Christian L. Marsh; Realty Law, Joan R. Gallo and Joseph Karnes for Real Party
in Interest and Respondent Calpine Corporation. OPINION PREMO, J.--Great
Oaks Water Company (Great Oaks) and Santa Teresa Citizen Action Group (collectively
petitioners) appeal from an adverse judgment on their petition for writ of
mandate and complaint for declaratory and injunctive relief. Petitioners
challenge a decision by respondents, City of San Jose and the City Council of
the City of San Jose (collectively, City) approving the extension of an
existing water recycling program to North Coyote Valley. Petitioners argue that
in approving the extension, City violated the California Environmental Quality
Act (CEQA). (Pub. Resources Code, § 21000 et seq.) n1
Petitioners also argue that extension of the recycled water program is
inconsistent with City's general plan, threatens to be a nuisance, and offends
the public trust doctrine. We conclude that City's action was consistent with CEQA's requirements. We shall reject petitioners'
additional contentions and affirm the judgment. I. Facts A. The Recycled Water Program The impetus to develop a recycled water program came
from the San Francisco Bay Regional Water Quality Control Board (RWQCB). By the
late 1980's, freshwater discharge from City's sewage treatment facilities was
destroying the saltwater habitat of endangered species along the edge of San
Francisco Bay. RWQCB ordered City to reduce its discharge of fresh water. In response City
participated in the creation of the San Jose Nonpotable
Reclamation Project, now known as the South Bay Water Recycling Program (the
Project). Instead of discharging wastewater into the bay, the Project proposed
to treat some of it and use it for irrigation and other appropriate purposes. n2 The Project contemplated a waste treatment facility and
pipeline system within what is known as the "Golden Triangle," an
area encompassing parts of the cities of San Jose, Milpitas, and Santa Clara.
Future expansion beyond the Golden Triangle was part of the plan. City
certified a final environmental impact report for the Project in 1993 (the
FEIR). The one concern relating to the use of nonpotable water that is central to petitioners' appeal is
the concern that substances in the water that make it unfit to drink could find
their way into the drinking water supplies. The FEIR addresses that concern.
The FEIR evaluates the Golden Triangle portion of the Project at "project
level" and the future expansion of the Project at "program
level." (See
Guidelines, § 15168.) n3 The program portion of the FEIR describes the groundwater
aquifers within the entire program area. In the central portion of the
groundwater basin where the Golden Triangle is located, the
upper and lower aquifers are separated by a nearly impermeable layer referred
to as the aquitard. The aquitard
helps prevent water on the surface from seeping down and getting into the lower
aquifer, which is the aquifer used for drinking water. Around the edge of the
groundwater basin the aquitard is discontinuous.
Without the protection of an aquitard, surface water
passes more easily into the groundwater. The FEIR recognizes that infiltration
of recycled water in the Golden Triangle area is particularly unlikely because
the aquifer in that area is protected by the aquitard
and also because the Golden Triangle has low rates of
groundwater infiltration generally. Referring to the areas into which the
Project was to be expanded, the FEIR recognizes that
in some of those areas the aquifer is unconfined by an aquitard
and is thus more vulnerable to degradation from surface water. To mitigate the Project's potential impact on the
aquifer the FEIR requires recycled water quality and use to conform to all
standards and guidelines set by the pertinent federal, state, and local
agencies. Title 22 of the California Code of Regulations contains Department of
Health Services (DHS) guidelines for the design, operation, and monitoring of
recycled water programs. (Cal. Code Regs., tit. 22, § 60301
et seq.) RWQCB establishes general guidelines for irrigating with recycled
water. (Cal. Code Regs., tit. 23, § 490 et
seq.) Real party in interest, Santa Clara Valley Water District (SCVWD)
establishes standards for irrigation rates and timing within the program area,
conducts baseline groundwater quality studies, and monitors groundwater
quality. City and SCVWD are jointly responsible for mitigation. All use of
recycled water is subject to review and approval by City and DHS. City and DHS
review customers' plans for recycled water on a case-by-case basis. Any
particular use is allowed only upon completion of
these reviews and issuance of a permit. If degradation were
ever detected, use of the recycled water would be modified. The FEIR goes on to explain that groundwater impacts
in the expansion areas would be "similar to construction and operation of
the project in the Golden Triangle area and vicinity. Although the lower
aquifer in portions of the expansion area is unconfined, expected reclaimed water
quality and application rates would still afford adequate groundwater
protection." DHS guidelines pertaining to the quality and use of recycled
water "establish a conservative approach to protect groundwater in areas
where shallow, unconfined aquifers could be affected by excessive infiltration
of reclaimed water." The FEIR concludes: "Given the required level of
treatment for reclaimed
water, the operational safeguards required by the [DHS] and
RWQCB, and the physical characteristics of the aquifer in the project area neither
the proposed project nor other future nonpotable
reclamation projects would be expected to contribute significantly to
groundwater degradation ... . However, groundwater impacts of any future
reclamation project would need to be evaluated to determine if groundwater
degradation would result." (Italics added.) B. Calpine's Application to
Build a Power Plant In 1999, real party in interest Calpine
Corporation (Calpine) applied to the California
Energy Commission (CEC) for approval to build a 600-megawatt natural-gas-fired
electric generating facility in North Coyote Valley, south of the Golden
Triangle. The proposed Metcalf Energy Center (MEC) was the subject of a lengthy
and contentious public debate. The CEC ultimately issued a license for its
construction. n4 One of the conditions of that license
is that MEC use recycled water rather
than potable water in its closed cooling system. The CEC's
environmental assessment analyzed the impact of using recycled water for that
purpose and concluded that it presented no significant environmental impacts. At the time the CEC approved the MEC project, City's
Municipal Water System Division was the only retailer of recycled water in the
area. Great Oaks had been willing to build a pipeline to deliver recycled water
to serve MEC, but it did not have the licenses and other approvals in place to
do so. n5 City was eventually identified as the
primary supplier of recycled water for MEC. C. City's
Approval of the Silver Creek Alignment The Project was designed at
the outset to be expanded in phases. Phase 1 was primarily a build-out of the
Golden Triangle project. Phase 2 planned to extend the Project in several
directions. Of interest here is the Via del Oro
extension that would have extended the Project into the southernmost portion of
the original program area and somewhat beyond, terminating around the site
proposed for MEC in North Coyote Valley. An initial study for the phase 2 expansion was completed in May 2000. This study presumed that recycled
water would be used for landscape and agricultural
irrigation in the expansion areas. The study determined that the impact of such
use upon the groundwater was not significant in light of a specified mitigation
and monitoring plan. The study stressed that additional
monitoring would be conducted in areas with unconfined aquifers. The phase 2
initial study resulted in a negative declaration adopted on July 12, 2000. City considered the delivery of recycled water to MEC
at three city council meetings in 2001. At the two meetings held in June, City
discussed using the Via del Oro route and debated
about the size of the pipeline. An alternate route, the Silver Creek alignment,
was proposed in July
2001. The new route ran parallel to and just east of the Via del Oro route. The proposal was to build approximately nine
miles of 30-inch pipe along the new route. Thirty-inch pipe has a capacity of
15 million gallons per day (mgd). Since MEC's peak usage was expected to be no more than 5 mgd,
the new pipeline could carry 10 mgd
that could be used by then unidentified new customers along the Silver Creek
route and further south. The initial study evaluating the new route was conducted in August 2001. This study recognized that the
FEIR and the phase 2 initial study had evaluated the environmental impact of
irrigating with recycled water in North Coyote Valley. The study pointed out
that the use of water for irrigation along the Silver Creek alignment would
comply with previously identified mitigation measures, including the
requirement that a groundwater monitoring and
mitigation plan be developed specifically for the phase 2 area. The initial
study found that implementation of those mitigation measures would reduce the
groundwater impact to less than significant. City adopted the 2001 initial study by an addendum to
the FEIR dated September 5, 2001, noting, "[a] subsequent EIR will not be
prepared because the project described in this addendum does not involve new
significant environmental effects or a substantial increase in the severity of
previously identified significant effects." City then entered into an
agreement with Calpine to build the new pipeline. II. Procedural Background City filed a notice of determination on November 13,
2001, stating that City had approved an agreement between it and Calpine "to allow a 30-pipeline pipeline [sic]
in the Silver Creek Alignment" and a financing plan for "the South
Bay Water Recycling Silver Creek Alignment to provide recycled water to Metcalf
Energy Center and other potential users along the new alignment." Petitioners filed a timely petition for writ of
mandate and complaint for declaratory and injunctive relief. The lawsuit sought
to set aside City's action as a violation of CEQA and
as an abuse of discretion outside the CEQA context. Petitioners also sought an
injunction under theories of public nuisance and violation of the public trust
doctrine. Petitioners submitted a declaration from Great Oaks Chairman, John
Roeder, in which he expressed his concern that the Project's extension to North
Coyote Valley would degrade the underlying aquifer. He said that he had
privately obtained a test of the Project's recycled water and that the results
showed levels of NDMA and THM in excess of drinking water standards. n6 City and real parties in interest (collectively,
respondents) objected to the Roeder declaration on the
grounds that it was hearsay and that it was outside the administrative
record. (Western States Petroleum Assn. v. Superior Court (1995)
9 Cal.4th 559 [38 Cal. Rptr. 2d 139, 888 P.2d 1268] (Western
States).) Respondents submitted their own expert declarations
contradicting Roeder. Petitioners' reply
included another Roeder declaration, the declaration of Robert Curry, Ph.D.,
and other declarations controverting the assertions
contained in respondents' declarations. Respondents objected again, arguing
that the new declarations raised new issues to which they should
be permitted to reply. Just days before the matter was to be heard in the trial court, petitioners served a
motion to disqualify all respondents' attorneys and to strike all respondents'
submissions. Petitioners claimed that
attorney Joan Gallo, who was then representing Calpine,
had previously represented Great Oaks in a related matter. Since all counsel
had collaborated in the defense of the lawsuit, petitioners argued that they should all be disqualified. Prior to a decision on the
motion, petitioners dismissed it as to all counsel except the two attorneys
representing Calpine-Gallo and Anne Mudge. The motion was heard along
with trial of the matter on June 20, 2002. Counsel argued the issues and
submitted on the papers that had been filed. The trial
court denied the disqualification motion without making express findings. The
judgment, which states that the court reviewed "the Administrative Record
in this matter, the briefs submitted by counsel, and
argument of counsel" implies that the court sustained respondents'
objections to petitioners' declarations. The court denied the petition for writ
of mandate and entered judgment for defendants, respondents, and real parties
in interest. This appeal followed. III. Jurisdiction Before we proceed to a discussion of the issues, we
should clarify that which we are asked to review.
Petitioners' lawsuit seeks to set aside City's
approval of the Silver Creek alignment. As such, the matter could
be understood as an attempt to halt construction of the entire pipeline.
Citing the Warren-Alquist State Energy Resources
Conservation and Development Act (§
25000 et seq.), respondents argue that this court lacks jurisdiction to
halt construction of the pipeline or to pass upon City's approval of the Silver
Creek alignment to the extent it involves the delivery of recycled water to
MEC. According to respondents and amicus curiae only the Supreme Court of
California may review an issue that was or could have been
determined by the CEC. n7 Petitioners evidently concede the point because they
do not ask us to review City's decision to provide recycled water to MEC. They challenge only City's action permitting the
extension of the Project to "other potential users along the new
alignment." Our review shall be limited accordingly. n8 IV. Issues 1. Did City violate CEQA in
approving the Silver Creek alignment? 2. Is the Silver Creek alignment
consistent with City's general plan? 3. Must the
Silver Creek alignment be enjoined
as a threatened nuisance? 4. Does the Silver Creek
alignment violate the public trust doctrine? 5. Did the trial court err in
denying petitioners' disqualification motion? V. Discussion A. CEQA Petitioners' entire appeal focuses upon two factual allegations: (1) that the aquifer
beneath North Coyote Valley lacks the protection of an aquitard
and the low rates of groundwater infiltration that are present in the Golden
Triangle; and (2) that City's recycled water contains concentrations of toxic
substances, including NDMA and THM, in excess of drinking water standards.
Petitioners' general contention is that City did not take
these concerns into account when it approved the Silver Creek alignment. 1. Exhaustion of Remedies Respondents point out that Great Oaks did not object
to the Silver Creek alignment during the CEQA process and no one raised
petitioners' specific concerns about groundwater contamination. According to
respondents, the CEQA cause of action is barred for
failure to exhaust administrative remedies. In order to attack a decision that is subject to
CEQA, the alleged grounds for noncompliance must have been
presented to the public agency, and the person attacking the decision
must have raised some objection during the administrative proceedings. (§ 21177, subds. (a), (b).) These
restrictions do not
apply to "any alleged grounds for noncompliance with [CEQA] for which
there was no public hearing or other opportunity for members of the public to
raise those objections orally or in writing prior to the approval of the
project, ... ." (§
21177, subd. (e).) This
subdivision codifies the rule that unless there is a clearly defined administrative
procedure for resolving complaints, the exhaustion doctrine is inapplicable. (Rosenfield v. Malcolm (1967)
65 Cal.2d 559, 566 [55 Cal. Rptr. 505, 421 P.2d
697].) The Silver Creek alignment was not
proposed until July 2001. City prepared an initial study in August 2001;
adopted the initial study in September 2001 through an addendum to the FEIR;
and approved the pipeline agreement with Calpine at a
city council meeting on October 16, 2001. Thus, by the time the public received
notice of the new alignment in connection with the October city council
meeting, environmental review was effectively complete. This procedure was not inconsistent with CEQA. City was not required to give
notice that an initial study was being prepared, nor was City required to circulate
the addendum for public comment. (Guidelines, § §
15063, 15164, subds. (a), (c).) Nevertheless, the result is that there was no
clearly defined administrative procedure for petitioners to resolve their
concerns about the project as it was finally configured, which means that the
exhaustion requirement of section 21177 does not apply. (See Azusa
Land Reclamation Co. v. Main San Gabriel Basin Watermaster
(1997) 52 Cal.App.4th 1165, 1210 [61 Cal. Rptr.
2d 447] (Azusa).) 2. The Need for an SEIR Petitioners claim that the 2001 initial study was
inadequate because it relied upon the FEIR, which they say did not consider the
geologic differences between the Golden Triangle and North Coyote Valley or the
presence of certain toxic substances in the recycled water. Petitioners contend
that these two considerations make the Silver Creek alignment so significantly
different from the original Project that City should have prepared a subsequent
or supplemental EIR (SEIR). n9 We begin with the standard of review. When an agency
has already prepared an EIR, its decision not to prepare an SEIR for a later
project is reviewed under the deferential substantial
evidence standard. (Bowman v. City of Petaluma (1986)
185 Cal. App. 3d 1065, 1073-1075 [230 Cal. Rptr. 413].)
Petitioners argue that the stricter "fair argument" rule should
apply. We disagree. In all actions challenging a public agency's decision
under CEQA other than those subject to section 21168, n10 "the inquiry
shall extend only to whether there was a prejudicial abuse of discretion. Abuse
of discretion is established if the agency has not proceeded in a manner
required by law or if the determination or decision is not supported by
substantial evidence." (§ 21168.5.) Review under this standard
differs depending upon whether the agency is considering a new project or an
extension or modification of an existing project. In the first instance, an
agency must prepare an EIR "whenever it can be fairly argued on the basis
of substantial evidence that the project may have significant environmental
impact." (No Oil, Inc. v. City of Los Angeles
(1974) 13 Cal.3d 68, 75 [118 Cal. Rptr. 34, 529 P.2d
66].) This test establishes a low threshold for initial preparation of
an EIR, which reflects a preference for resolving doubts in favor of
environmental review. (Sierra Club v. County of Sonoma (1992)
6 Cal.App.4th 1307, 1316-1317 [8 Cal. Rptr. 2d 473] (Sierra
Club).) When the public agency has already prepared an EIR,
no SEIR is required unless there are substantial changes in the project or the
circumstances surrounding the project, or if new information becomes available.
(§ 21166.) The reviewing court upholds an agency's
decision not to require an SEIR if the administrative record as a whole
contains substantial evidence to support the determination that the changes in
the project or its circumstances were not so substantial as to require major
modifications of the EIR. (Sierra Club, supra,
6 Cal.App.4th at p. 1318.) This deferential standard is a reflection of
the fact that in-depth review has already occurred. (Bowman
v. City of Petaluma, supra, 185 Cal. App. 3d at pp. 1073-1075.) Petitioners rely upon Sierra Club as support
for their view that the Silver Creek alignment represents such a substantial
change in the original Project that it should be treated
as if it was a new project. In Sierra Club the county had certified a
program EIR for a resource management plan that regulated mining. The plan
specified lands available for future mining and provided for preservation of
identified agricultural lands. (Sierra Club, supra,
6 Cal.App.4th at pp. 1313-1314.) Years later, a mining company proposed
to amend the EIR to designate for mining a large parcel that had
been identified as agricultural in the EIR. (Id.
at p. 1314.) The appellate court held that the deferential review
provided by section 21166 did not apply because the proposed project was not
"either the same as or within the scope of" the program described in
the EIR, which had expressly exempted the agricultural land from future mining.
(Sierra Club, supra, 6 Cal.App.4th at p. 1321.)
In the present case, the most recent project is the
same as that described in the FEIR.
Petitioners' contention that it differs ignores the program portion of
the FEIR and the phase 2 initial study. The Silver Creek alignment will use
recycled water in the same way and in the same general location evaluated by
the previous studies. Accordingly, section 21166 and the deferential
substantial evidence standard govern our review. The standard applies to both
the trial and appellate courts. We independently review the administrative record. (River Valley Preservation Project v. Metropolitan Transit
Development Bd. (1995) 37 Cal.App.4th 154, 168 [43 Cal. Rptr.
2d 501].) We resolve reasonable doubts in favor of the administrative
decision. (Topanga Assn. for a Scenic Community v. County
of Los Angeles (1974) 11 Cal.3d 506, 514 [113 Cal. Rptr.
836, 522 P.2d 12].) "We do not judge the wisdom of the agency's
action in approving the Project or pass upon the correctness of the EIR's environmental conclusions. (Fund
for Environmental Defense v. County of Orange (1988) 204 Cal. App. 3d 1538
at p. 1545 [252 Cal. Rptr. 79]; City of Fremont v.
San Francisco Bay Area Rapid Transit Dist. (1995) 34 Cal.App.4th 1780 [41
Cal. Rptr. 2d 157].) Our function is simply to determine whether
the agency followed proper procedures and whether there is substantial evidence
supporting the agency's determination that the changes in the Project (or its
circumstances) were not substantial enough to require an SEIR." (River Valley Preservation Project v. Metropolitan Transit
Development Bd., supra, 37 Cal.App.4th at p. 168.) n11 We cannot discern any significant change in the
Project or its circumstances arising from the Silver Creek alignment. The
location of the Silver Creek alignment is not significantly different from the
Via del Oro alignment that was
fully evaluated and subject to public review and comment in connection
with the phase 2 initial study and negative declaration. Both routes extend
into North Coyote Valley, and both routes terminate at or near the MEC site.
Petitioners do not explain, nor does the record shed any light upon how, if at
all, the Silver Creek route poses a different or greater threat to the aquifer
than that posed by the Via del Oro route. Both the FEIR and the phase 2 initial study
determined that degradation of the groundwater was a potentially significant
impact of a recycled water project but that the impact was reduced to
insignificant by the implementation of various mitigation measures. The program
portion of the FEIR recognized the greater risk to the groundwater in
areas where the aquifer was unconfined. The phase 2 study evaluated the issue
in North Coyote Valley specifically, and acknowledged that the aquifer in this
area was unconfined and that the ground was more permeable there. To the extent any previously unidentified toxic
substances may occur in the recycled water, their presence does not give rise
to a different or substantially more severe impact than that already considered
by the FEIR and the phase 2 initial study. The recycled water produced by the
Project is nonpotable--it is not
intended to be drunk. The concern about contaminating the groundwater implicitly acknowledges
that nonpotable water contains substances that are
not safe for drinking. All of the environmental documents pertaining to the
Project recognize that fact. In sum, the record contains substantial evidence
supporting the conclusion that the environmental impact of the Silver Creek
alignment upon the groundwater in North Coyote Valley was not substantially
different from or greater than the impacts considered in the previous studies. Petitioners go on to contend that the initial study
failed to consider that approval of the Silver Creek alignment would conflict
with the groundwater policies in City's general plan. The argument again
ignores the record. The FEIR and the phase 2 initial study both determined that
the Project was consistent with City's general plan policies. Since the Silver Creek alignment does not
pose a new or substantially greater threat to the groundwater than that
previously considered, the initial study was not required to reevaluate its
consistency with the general plan. Petitioners also argue that City should not have
relied upon the FEIR's "vague and
unspecified" mitigation measures in determining that the Silver Creek
alignment posed no significant environmental impact. Petitioners' reliance upon
Azusa, supra, 52 Cal.App.4th at page 1210 as support for this
argument is misplaced. In Azusa the Court of Appeal held that the public
agency erred in declaring a project exempt from CEQA without having evaluated
the proposed mitigation under standards for a mitigated negative declaration. The
agency's own evaluation of the project determined that even with the proposed
mitigation measures the potential impact of the project could be significant,
but it nevertheless decided that the project was
exempt from CEQA. (Id. at p. 1188.) The
appellate court set aside the agency's decision because, among other things,
there had been no full evaluation of the environment effects of the project. (Id. at p. 1201.)
That is, an EIR had never been prepared. In the present case, the environmental effects of the
Project and the efficacy of the mitigation measures were
evaluated in detail in the FEIR and the phase 2 initial study. Unlike
the situation in Azusa, there has been a full environmental evaluation
of the existing Project. City's conclusion that the Silver Creek alignment does
not amount to a significant departure from the Project as previously evaluated
means that City was not required to revisit the
mitigation measures prescribed. Indeed, absent a significant change in the
Project, the certified FEIR is conclusively presumed
to be valid. (§
21167.2.) n12 3. Extra-record Evidence Petitioners argue that an SEIR was
necessitated by new information. But the new information upon which
petitioners rest their argument is the alleged presence of NDMA and THM in the
recycled water--information that petitioners collected privately after City
approved the Silver Creek alignment. The question of whether there is substantial evidence
to support the agency's decision concerns the evidence in the record.
This is a question of law. The existence of evidence outside the record, such a petitioners'
extra-record evidence here, is irrelevant to that question and is inadmissible
for that reason. (Western States, supra, 9
Cal.4th at pp. 572-573.) In some cases the extra-record evidence
might be admissible to prove that the agency did not proceed as required by
law, as when petitioners raise issues such as "standing ...
, the accuracy of the administrative record, ... procedural unfairness,
and ... agency misconduct." (Id. at pp. 575-576,
fn. 5.) Petitioners do not address the admissibility of the
evidence in their opening brief. Petitioners' reply suggests that the
extra-record evidence concerning the presence of NDMA and THM shows that City
ignored important public health issues or, in effect, that City failed to
proceed in the manner required by law. The evidence they have submitted,
however, does not support this contention. The substance of petitioners' concern is contained in
the Curry declaration. Curry opined: "The question is whether use of these
recycled waters for irrigation and landscaping may significantly degrade the
quality of Great Oaks' drinking water supply through contamination by NDMA and
other toxic chemical [sic]: The answer is clearly yes: it may do so, ..."
That the Project may pose a threat to the groundwater is a possibility
that is acknowledged throughout the administrative
record. Petitioners are simply incorrect when they state that City failed to
address this concern. As our Supreme Court has stated: "Were we to
hold that courts could freely consider extra-record evidence in these
circumstances, we would in effect transform the highly deferential substantial
evidence standard of review in Public Resources Code section 21168.5 into a de
novo standard, and under that standard the issue would be not whether the
administrative decision was rational in light of the evidence before the agency
but whether it was the wisest decision given all the available scientific data.
The propriety or impropriety of a particular legislative decision is a matter
for the Legislature and the administrative agencies to which it has lawfully
delegated quasi-legislative authority; such matters are not appropriate for the
judiciary." (Western States, supra, 9
Cal.4th at p. 572.) Petitioners' extra-record evidence is inadmissible
to support the writ petition. B. Consistency with the General Plan Petitioners also sought a writ of mandate outside the
CEQA context. (Code Civ. Proc., § 1085.) The gist of petitioners
argument is that City's approval of the Silver Creek alignment is inconsistent
with its general plan policies relating to protection of the groundwater
supply. On appeal from the denial of a writ of mandate we
must determine whether City's decision was arbitrary, capricious, entirely
lacking in evidentiary support, or procedurally unfair. (Associated
Builders & Contractors, Inc. v. San Francisco Airports Com.
(1999) 21 Cal.4th 352, 361 [87 Cal. Rptr. 2d 654, 981
P.2d 499].) Consistency with the general plan can be a measure of
whether City abused its discretion in approving the challenged project. (See Mira Development Corp. v. City of San Diego (1988) 205
Cal. App. 3d 1201, 1214-1215 [252 Cal. Rptr. 825].)
Here, it is the only factor that petitioners assert to
challenge City's action as an abuse of discretion. In light of our conclusion that the Silver Creek
alignment poses no threat to the groundwater that was not addressed in the
prior documents, and given that the prior
environmental reviews determined that the Project was consistent with
City's general plan policies, City's approval of the new alignment cannot be
deemed arbitrary, capricious, unsupported or unfair. The trial court did not
err in denying the writ. C. Nuisance Petitioners next argue that City's approval of the
Silver Creek alignment threatens to create a nuisance pursuant to Civil Code
sections 3479 and 3493, Water Code section 13350, and Fish and Game Code
section 5650. Petitioners presume as they have all along that expanding the use
of recycled water to
new users in North Coyote Valley will inevitably contaminate the aquifer.
Respondents argue the issue is not ripe for review. We agree with respondents. "[A] basic prerequisite to judicial review of
administrative acts is the existence of a ripe controversy." (Pacific Legal Foundation v. California Coastal Com. (1982)
33 Cal.3d 158, 169 [188 Cal. Rptr. 104, 655 P.2d
306].) The ripeness doctrine is based upon the
recognition that judicial decisions are best made in the context of an actual
set of facts so that the issues will be framed with sufficient definiteness to
enable the court to make a decree finally disposing of the controversy. (Id. at p. 170.) " 'The
controversy must be definite and concrete, touching the legal relations of
parties having adverse legal interests. [Citation.] It
must be a real and substantial controversy admitting of specific relief through
a decree of a conclusive character, as distinguished from an opinion advising
what the law would be upon a hypothetical state of facts.' "
(Id. at pp. 170-171.) " 'A controversy is "ripe"
when it has reached, but has not passed, the point that the facts have
sufficiently congealed to permit an intelligent and useful decision to be
made.' " (Id. at p. 171, quoting California
Water & Telephone Co. v. County of Los Angeles (1967) 253 Cal. App. 2d
16, 22 [61 Cal. Rptr. 618].) Courts will not be drawn into disputes that depend for their
immediacy on speculative future events. (Id. at p.
173.) The instant case is similar to a case seeking review
of administrative regulations prior to their application. In those cases, it
has been stated: "[The] basic rationale [of the ripeness doctrine] is to
prevent the courts, through avoidance of premature adjudication, from
entangling themselves in abstract disagreements over administrative policies,
and also to protect the agencies from judicial interference until an
administrative decision has been formalized and its effects felt in a concrete
way by the challenging parties. The problem is best seen in a twofold aspect,
requiring us to evaluate both the fitness of the issues for judicial decision
and the hardship to the parties of withholding court consideration." (Abbott Laboratories v. Gardner (1967) 387 U.S. 136, 148-149
[18 L. Ed. 2d 681, 87 S. Ct. 1507].) Applying these principles to the case at hand, we
conclude that petitioners' nuisance claim lacks the urgency and definiteness
necessary to make it ripe for adjudication. It is true that petitioners seek to
entirely prevent the use of recycled water in North Coyote Valley and that
respondents have an interest in finding new recycled water users in that
location. To that extent, the parties' interests are adverse. However, the real
issue is whether the use of the water would threaten the groundwater supply. The
record does not support petitioners' suggestion that any use of the
water will inevitably contaminate the aquifer. And no use other than MEC's has yet been approved. Absent approval of some specific use, we have no facts upon
which to evaluate whether a particular use might constitute a nuisance. The hardship to the parties of withholding court
consideration does not demand the matter be resolved now. Any hardship inherent
in delaying adjudication may never arise. Petitioners' alleged injury depends
upon the assumption that City will approve uses for recycled water that pose a
significant risk to the aquifer from which petitioners obtain their drinking
water. Although it is fairly certain that new recycled
water users will eventually be brought on line, the likelihood that City will
permit new uses without regard to the risks is speculative at best. This is not to say that petitioners must permit the
groundwater to become contaminated before the issue
will be justiciable. We merely hold that in order to rule
upon the issue, the threatened nuisance must be more definite than it is here. D. Public Trust Petitioners contend that the Silver Creek alignment
will violate the public trust doctrine. Under the public trust doctrine, the
state has title as trustee to all tidelands and navigable lakes and streams and
is charged with preserving these waterways for navigation, commerce, and
fishing, as well as for scientific study, recreation, and as open space and
habitat for birds and marine life. (National Audubon
Society v. Superior Court (1983) 33 Cal.3d 419, 434-435 [189 Cal. Rptr. 346, 658 P.2d 709].) As respondents point out,
the doctrine has no direct application to groundwater sources. To the extent it
applies to Coyote Creek itself, there is no evidence in the record from which
we may conclude that the potential irrigation of the surrounding area threatens
the public's interest in this waterway. Furthermore, as is the case with the
nuisance cause of action,
the issue is not ripe for decision. E. Disqualification of Counsel Petitioners finally argue that the trial court erred
in denying their motion to disqualify Calpine's
attorneys Gallo and Mudge. They claim that
disqualification was required because Gallo had formerly represented Great Oaks
in a related matter and that Mudge should
also be disqualified because, even though the two attorneys belonged to
different law firms, they worked closely together on this case. Gallo's former representation of Great Oaks was
short-lived. Great Oaks had sought Gallo's assistance in a dispute with City
over who would be permitted to expand water services into currently unserved areas in the Coyote Valley. Gallo met with Roeder
and other Great Oaks employees on March 20, 2001. Gallo recalls that they
discussed "how we would explain to [City] the nature of Great Oaks
investment in potable water infrastructure in the unserved
territory." Since Gallo was also representing City at the time, she
informed Roeder that she would not take any position adverse to City and she
sought Roeder's written consent to waive the potential conflict. Gallo intended
to limit her representation of Great Oaks to advocating Great Oaks' position on
the service area issue. She went so far as to register with City as a lobbyist
for that purpose. She soon decided that it would not be possible to work around
the potential conflict and withdrew from the Great Oaks representation in a
letter dated April 26, 2001. Although her firm billed Great Oaks for three
hours (two hours for the March 20 meeting and one hour for reading documents),
Gallo forgave the bill. Gallo began advising Calpine
in or around May 2001. She has been identified as representing Calpine
in this litigation since at least January 2002. Roeder states that he retained Gallo "in
connection with [Great Oaks'] objection to the potential extension of potable
and non-potable water services by [City] into areas adjacent to or within the
service area of [Great Oaks]." Roeder describes the March 20, 2001 meeting
as one in which he educated Gallo about Great Oaks' "efforts to provide
high quality drinking water ... and [Great Oaks'] current and future interest
in maintaining and expanding its delivery of high quality drinking water to
this area." Roeder goes on to say that Great Oaks "divulged highly
confidential and sensitive information with regard to [Great Oaks'] operations,
financial condition, future service plans, and concerns about threats to [Great
Oaks'] water supply and delivery capacity. In particular, we discussed at
length [Great Oaks'] concerns with regard to the threatened extension of
potable and non-potable water services from [City] into [Great Oaks'] current
and planned future service areas." Roeder claimed he did not learn of
Gallo's representation of Calpine in this case until
June 10, 2002, 10 days before the trial. We review the trial court's decision under the
familiar abuse of discretion standard. (People ex rel. Dept. of Corporations v. SpeeDee
Oil Change Systems, Inc. (1999) 20 Cal.4th 1135, 1143-1144 [86 Cal. Rptr. 2d 816, 980 P.2d 371].) "If the trial
court resolved disputed factual issues, the reviewing court should not
substitute its judgment for the trial court's express or implied findings
supported by substantial evidence. [Citations.]"
(Id. at p. 1143) Where there are no material disputed factual issues, we
review the trial court's determination as a question of law. (Id.
at p. 1144.) An attorney is required to avoid the representation
of adverse interests. The attorney cannot, "without the informed written
consent of the client or former client, accept employment adverse to the client
or former client
where, by reason of the representation of the client or former client, the
member has obtained confidential information material to the employment."
(Rules Prof. Conduct, rule 3-310(E).) Whether or not disqualification is
required in successive representation cases depends upon two variables:
"(1) the relationship between the legal problem involved in the former
representation and the legal problem involved in the current representation,
and (2) the relationship between the attorney and the former client with
respect to the legal problem involved in the former representation." (Jessen v. Hartford Casualty
Ins. Co., (2003) 111 Cal.App.4th 698, 709 [3 Cal. Rptr.
3d 877].) Where, as here, the attorney had direct contact with the
former client, disqualification will usually be determined by the first
variable. (See Ibid.) The fact of a prior representation itself does not
preclude an attorney from accepting a subsequent representation adverse to the
former client if the matter is not substantially related
to the previous employment. Nor is the attorney precluded from accepting a
representation in the same general matter where his employment is not adverse
to his former client. The attorney is only precluded
from a subsequent representation that is adverse to the former client and that
involves a matter that is substantially related to the previous employment. (Grove v. Grove Valve & Regulator Co. (1963) 213 Cal.
App. 2d 646, 651-652 [29 Cal. Rptr. 150].)
Therefore, even where the two representations involve the same general subject,
disqualification is not required if the nature of the factual and legal
questions posed are
not similar. (H. F. Ahmanson & Co. v.
Salomon Brothers, Inc. (1991) 229 Cal. App. 3d 1445, 1456-1457 [280
Cal. Rptr. 614].) We must also recognize that disqualification motions are commonly used for purely strategic purposes to delay the
litigation, harass the opposing party or pressure for a more favorable settlement.
(H.F. Ahmanson & Co. v. Salomon Brothers, Inc.,
supra, 229 Cal. App. 3d at p. 1454.) As our
Supreme Court has noted: "A motion to disqualify a party's counsel may
implicate several important interests. Consequently, judges must examine
these motions carefully to ensure that literalism does not deny the parties
substantial justice. [Citation.] Depending on the
circumstances, a disqualification motion may involve such considerations as a
client's right to chosen counsel, an attorney's interest in representing a
client, the financial burden on a client to replace disqualified counsel, and
the possibility that tactical abuse underlies the disqualification
motion." (People ex rel.
Dept. of Corporations v. SpeeDee Oil Change Systems,
Inc., supra, 20 Cal.4th at pp. 1144-1145.) In this case the declarations are materially
undisputed. Great Oaks hired Gallo to help protect its plans to expand its
water services. Arguably, Gallo's representation of Calpine
is not adverse to Great Oaks in that Calpine's
interest is in the construction of its power plant. To the extent that Calpine's position in support of City's action
is adverse to Great Oaks, the factual and legal issues involved are not
substantially similar to those involved in the prior representation. The sole
basis for this lawsuit is petitioners' concern about the safety of using
recycled water for irrigation in North Coyote Valley. Petitioners cite four
theoretical legal impediments to that use, lack of compliance with CEQA,
inconsistency with City's general plan, threat of nuisance, and violation of
the public trust. Assuming that Roeder shared with Gallo confidential business
plans and strategies, we cannot see how that information is material the issues
raised in this case. Resolution of the instant dispute requires resort to the
facts set forth in the administrative record. These are undisputed facts to
which we apply settled rules of law. Great Oaks' business plans have no bearing
upon those issues. Although Great Oaks contends that it hired Gallo at
"the initial stages of the present action" that cannot be so. In
March 2001, when Great Oaks first retained Gallo, the Silver Creek alignment had not yet been proposed. City did not begin studying the
Silver Creek alignment until August 2001, four months after
Gallo withdrew from her representation of Great Oaks. Since this lawsuit
challenges only the environmental effects of the Silver Creek alignment, Great
Oaks could not have hired Gallo at the initial stages of this action. It is also evident that granting
the disqualification motion on the eve of trial would have resulted in
substantial prejudice to the defense. Calpine would have been deprived of its choice of counsel and a
substantial continuance would have been required in order to allow it to find new
counsel and prepare for trial a second time. We conclude that since the legal issues involved in
the successive representations were entirely separate and considering that
petitioners waited until the eleventh hour to file
their disqualification motion, the trial court did not abuse its discretion in
denying the motion. VI.
Disposition The judgment is
affirmed. Rushing, P. J., and Mihara, J., concurred. A petition for a rehearing was denied January 13, 2004. FOOTNOTES n1 All further undesignated statutory references are to
the Public Resources Code. n2 Since the Project was first proposed the Legislature
has declared that it is in the public interest to encourage the development of
facilities to recycle water to supplement existing surface and underground
water supplies. (Water Code, § 13510.) n3 References to Guidelines are to the administrative
guidelines for implementation of CEQA. (Cal. Code Regs., tit. 14, § 15000 et seq.) Guidelines section 15168, subdivision (a) permits the
use of a program environmental impact report (EIR) when a project consists of
"a series of actions that can be characterized as one large project"
and are related either: "(1) Geographically, [P] (2) As logical parts in
the chain of contemplatedactions, [P] (3) In
connection with issuance of rules, regulations, plans, or other general
criteria to govern the conduct of a continuing program, or [P] (4) As
individual activities carried out under the same authorizing statutory or
regulatory authority and having generally similar environmental effects which
can be mitigated in similar ways." n4 Both petitioners objected to MEC and unsuccessfully
appealed the CEC's decision. (See Santa
Teresa Citizen Action Group v. State Energy Resources Conservation &
Development Com. (2003) 105 Cal.App.4th 1441 [130 Cal. Rptr.
2d 392].) n5 In order to serve MEC with recycled water Great
Oaks would have had to obtain permission from the Public Utilities Commission
to extend its service area to the MEC site, obtain a license to sell recycled
water, and reach an agreement with the Project to buy recycled water, since
Great Oaks had no facilities of its own to produce it. n6 THM stands for trihalomethane
and NDMA is short for N-nitrosodimethylamine. n7 With respect to power plants like MEC, the CEC has
"the exclusive power to certify all sites and related facilities in the
state." (§ 25500.)
"[N]o court in this state [other than the Supreme Court] has jurisdiction
to hear or determine any case or controversy concerning any matter which was,
or could have been, determined in a proceeding before the [CEC], or to stop or
delay the construction or operation of any thermal powerplant."
(§ 25531, subd. (c); see Santa Teresa Citizen Action Group v.
State Energy Resources Conservation & Development Com., supra,
105 Cal.App.4th 1441.) n8 It is unclear whether this court would be acting in
excess of its jurisdiction if it were to rule upon City's approval of the size
or location of the pipeline. If such a ruling would stop or delay the
construction of MEC, section 25531, subdivision (c) appears to prohibit it.
Because we reject petitioners' challenge to City's approval of the Silver Creek
alignment, we need not reach the issue. n9 Since it is not necessary here to distinguish
between a subsequent EIR and a supplemental EIR, we shall use "SEIR"
to refer to either or both types of EIR's. n10 Section 21168 applies to decisions made in a case
where the agency is required to hold hearings and take evidence. n11 Petitioners analyze the adequacy of the initial study
separately from the question of whether City should have prepared an SEIR. The
analyses are interrelated. When a project falls within the scope of a previous
EIR, the initial study is used to decide whether there
are new impacts that were not discussed in the prior EIR and to focus
upon whether those new impacts warrant further environmental review. (§ 21094, subd. (c); Guidelines, § 15063, subd.
(b)(1)(C).) Since the question of whether the agency
should have prepared an SEIR is really the ultimate issue, we shall focus our
discussion upon it. n12 Some of the mitigation measures are necessarily
nonspecific. The requirement that the quality and use of recycled water conform
to all public health and safety regulations is an example. This requirement
means that the Project must address water quality issues as they arise and
adjust specific mitigation measures as harmful substances are
identified and as reliable techniques are developed to test for them. Document URL: http://ceres.ca.gov/ceqa/cases/2003/Santa_Teresa_Citizen_Action_Group-114_Cal._App._4th_689.htm Copyright © 1998-2003 California Resources Agency. All rights reserved. |