Opinion
TAYLOR, P. J.
The California Coastal Zone Conservation Commission and Central Coast Regional Commission (Commission) appeal
from a judgment in two proceedings granting the petition of Billings et al. (owners) for a peremptory writ of mandate (Code Civ. Proc., § 1094.5).
As to one proceeding, the court concluded that the owners had a vested right to exemption from the permit requirements of the California Coastal Act of 1976 (1976 Coastal Act); as to the other, the court concluded that the Commission’s action in denying the owners a permit for their minor subdivision was not supported by law, and directed issuance of the permit. For the reasons set forth below, we have concluded that the owners were not exempt but are entitled to a permit.
We turn first to the exemption proceeding. The pertinent facts, as found by the trial court, are as follows: In 1976, petitioners Billings acquired 118 acres of land in San Mateo County. The property is not adjacent to the beach or to the ocean, but is located on Stage Road, two or three miles inland from the coast, about one mile north of Pescadero and four miles south of San Gregorio. The property is rolling hill land with a rural character.
In 1976, the San Mateo County Planning Department approved a minor land division to create three parcels of 25, 26 and 67 acres, respectively, on the property in question.
A written permit was issued on
December 30, 1976, subject to four conditions; final approval was granted without material change in May 1977, after the conditions had been duly completed. The conditions were purely routine and ministerial and approval of the minor division was substantially completed when the initial permit issued in 1976. County authorities recognized that this permit constituted the final discretionary approval which the county had to give.
The 1976 Coastal Act became effective on January 1, 1977. Public Resources Code section 30608 states, so far as pertinent: “(a) No person who has obtained a vested right
in a
development[
] prior to the effective date of this division ....” (Italics added.)
The above statutory exemption is written in broader language than its predecessor, Public Resources Code section 27404, set forth below.
The question presented is whether, by virtue of the county’s tentative approval of the subdivision map on December 30, 1976, the owners acquired a vested right to subdivide their land.
As Code of Civil Procedure section 1094.5 applies and a fundamental vested right of the owners was involved, the trial court was required to exercise its independent judgment on the evidence
(Strumsky
v.
San Diego County Employees Retirement Assn.
(1974) 11 Cal.3d 28, 32 [112 Cal.Rptr. 805, 520 P.2d 29];
Stanson
v.
San Diego Coast Regional Com.
(1980) 101 Cal.App.3d 38, 48-50 [161 Cal.Rptr. 392]). As in reviewing the Commission’s action on the exemption the court below exercised its independent judgment, we determine, as a matter of law, whether the findings and conclusions of the trial court lack support in the record
(Board of Education
v.
Jack M.
(1977) 19 Cal.3d 691, 700 [139 Cal.Rptr. 700, 566 P.2d 602]). We can overturn its factual findings only if the evidence received by the trial court, including the record
of the administrative proceeding, is insufficient, as a matter of law, to sustain the finding
(Patterson
v.
Central Coast Regional Com.
(1976) 58 Cal.App.3d 833, 842-843 [130 Cal.Rptr. 169]).
The doctrine of vested rights protects property owners from changes in zoning or other land use regulations which occur before the completion of the owner’s development project.
(Russian Hill Improvement Assn.
v.
Board of Permit Appeals
(1967) 66 Cal.2d 34, 39 [56 Cal.Rptr. 672, 423 P.2d 824]). A vested right to complete the project arises only after the property owner has performed substantial work, incurred substantial liability and shown good faith reliance upon a governmental permit
(Avco Community Developers, Inc.
v.
South Coast Regional Com.
(1976) 17 Cal.3d 785 [132 Cal.Rptr. 386, 553 P.2d 546]). The vested rights rule is neither a common law rule nor a constitutional principle, but a manifestation of equitable estoppel
(Raley
v.
California Tahoe Regional Planning Agency
(1977) 68 Cal.App.3d 965 [137 Cal.Rptr. 699]). “Where an owner of property, in good faith reliance upon a governmental representation that construction is fully approved, has suffered substantial detriment by proceeding with development, the government is estopped from prohibiting the project by a subsequent change in law. [Citations.] ‘Where no such permit has been issued, it is difficult to conceive of any basis for such estoppel.’ [Citations.] ‘[UJnless the owner possesses
all
the necessary permits, the mere expenditure of funds or commencement of construction does not vest any rights in the development.’ [Citation]; italics added.)
“It may be true that ‘[although the cases speak of vested rights in terms of reliance upon a
building permit
[citations omitted] ... a building permit may no longer be a
sine qua non
of a vested right.... [U]nder modern land development practices various governmental approvals are required before the issuance of a building permit, each approval pertaining to different aspects of the project, and ... a vested right might arise before the issuance of a building permit if the preliminary permits approve a specific project and contain all final discretionary approvals required for completion of the project.’ [Citations.]” (Pat
terson
v.
Central Coast Regional Com., supra,
58 Cal.App.3d, p. 844.)
The record here indicates no “good faith reliance” by the owners on the tentative permit issued on December 30, 1976. Prior to the permit, they spent about $520 for the cost of the survey; all other expenses relating to the subdivision were incurred after the January 1,
1977, effective date of the 1976 Coastal Act. These facts distinguish the instant matter from
Pardee Construction Co.
v.
California Coastal Com.
(1979) 95 Cal.App.3d 471, 481 [157 Cal.Rptr. 184].
Further, the trial court here relied on the “final discretionary approval test,” as it concluded that the final approval was ministerial
(Youngblood
v.
Board of Supervisors
(1978) 22 Cal.3d 644, 648 [150 Cal.Rptr. 242, 586 P.2d 556];
Great Western Sav. & Loan Assn.
v.
City of Los Angeles
(1973) 31 Cal.App.3d 403 [107 Cal.Rptr. 359]). The uncontroverted evidence here indicated that the four conditions had not been met.
This court (Div. Four) recently again rejected the use of this test in a substantially identical situation
(Tosh
v.
California Coastal Com.
(1979) 99 Cal.App.3d 388, 394 [160 Cal.Rptr. 170]), and held that final map approval is required in subdivision developments before a right to complete the subdivision vests (cf.
Oceanic California, Inc.
v.
North Central Coast Regional Com.
(1976) 63 Cal.App.3d 57, 70-74 [133 Cal.Rptr. 664]).
We conclude that the trial court erred as a matter of law in concluding that the owners had acquired a vested right to subdivide before the effective date of the 1976 Coastal Act.
We turn, therefore, to the permit proceeding, in which the trial court was limited to the substantial evidence. Our function is identical to that of the trial court and we review the administrative record to determine whether the Commission’s denial of the permit was supported by substantial evidence
(Bixby
v.
Pierno
(1971) 4 Cal.3d 130, 143, fn. 22, p. 149 [93 Cal.Rptr. 234, 481 P.2d 242]).
As indicated above, the property here in issue was of marginal agricultural quality. All of the owners are natural persons and none is a real estate developer. In addition to the existing barn and farmhouse on the 67-acre parcel, the owners want to build one farmhouse and one barn on each of the two smaller parcels. The owners have offered to execute binding covenants running with the land to guarantee that this will be the limit of their “development” and that there will be no further division of the land. They will not convert the land to nonagricultural purposes, but will maintain the maximum feasible amount of prime and
nonprime land in agricultural use. They have developed a workable plan to farm most of the land in common, as a unit, in a manner which would cover their costs and yield a moderate profit. This plan would put as much of the land as is feasible into productive agricultural use.
The major contentions on appeal pertain to the interpretation of Public Resources Code section 30250, subdivision (a), which reads as follows: “New...development, except as otherwise provided in this division,
shall be located
within, contiguous with, or in close proximity to, existing developed areas able to accommodate it
or, where such areas are not able to accommodate it, in other areas with adequate public services and where it will not have significant adverse effects,
either
individually or cumulatively,
on coastal resources. In addition,
land divisions,
other than leases for agricultural uses,
outside existing developed areas shall be permitted only where 50 percent of the usable parcels in the area have been developed and the created parcels would be no smaller than the average size of surrounding
parcels” (italics added).
Also pertinent are Public Resources Code sections 30241 and 30242, which are set forth below.
As each of the above provisions is a new one added by the 1976 Coastal Act, a brief look at its legislative history is useful. In attempting to divine the legislative purpose of the 1976 Coastal Act, a wide variety of factors may illuminate the legislative design, including the history of the times and of legislation on the same subject
(In re Marriage of Bouquet
(1976) 16 Cal.3d 583, 587 [128 Cal.Rptr. 427, 546 P.2d 1371]).
The predecessor of the 1976 Coastal Act, the California Coastal Zone Conservation Act of 1972 (Pub. Resources Code, § 27000 et seq.) specifically directed the preparation of a comprehensive, coordinated and enforceable plan for the coast (Coastal Plan) (Pub. Resources Code, § 27001, subd. (b)). The Coastal Plan was completed in December 1975, sent to the Governor, and a bill enacting its provisions introduced by Senator Beilenson (Sen. Bill No. 1579).
The Legislature, however, rejected the Beilenson bill after many amendments
and subsequently enacted Senate Bill No. 1277 (Stats. 1976, ch. 1330). As to the Coastal Plan, the Legislature did not incorporate it by reference but found and declared that some of the plan’s recommendations are appropriate for immediate implementation as provided for in the 1976 Coastal Act, while others require additional review (Pub. Resources Code, § 30002).
Particularly helpful is an August 6, 1976, letter
the Speaker of the Assembly sent to all members of that body prior to the final vote on Senate Bill No. 1277 in that house. As the letter summarizes the Legislature’s discussion and events prior to the final passage of the 1976 Coastal Act, we may properly consider it as part of the legislative history (
In re Marriage of Bouquet,
supra, 16 Cal.3d at pp. 589-590;
Rich
v.
State Board of Optometry
(1965) 235 Cal.App.2d 591, 603 [45 Cal.Rptr. 512]). The Speaker’s letter indicated that Senate Bill No. 1277 incorporated the major provisions of the Beilenson bill, referred to the many revisions, negotiations and compromises that led to the final version, detailed the final 22 major revisions, of which only two are pertinent here: “1. Amendments to make it clear the bill does
not
incorporate by reference the Coastal Plan and that the policies set forth in the bill constitute California’s coastal program. (Asked for by most opponents.)”
“8. Added language to balance social and economic needs of the people with the need to protect coastal resources. Modified many policies that were absolute by adding terms such as ‘where feasible’. (CCEEB; developers; labor; utilities; oil companies; and others.)”
The letter concluded that “A balance has been achieved... between the need to protect essential coastal resources ... and the need to assure continued economic growth and properly sited development in California’s Coastal Zone.”
This concern with balance is reflected in the basic goals of the 1976 Coastal Act, set forth below,
and represents a departure from the 1972 Coastal Act.
Thus, the Legislature expressly recognized that conflicts may arise between the different policies of the legislation and specified that
“such conflicts be resolved
in a manner which
on balance
is most protective of
significant coastal
resources” (Pub. Resources Code, § 30007.5; italics added).
In light of the above, we turn to the Commission’s specific findings.
The Commission found that the owners’ proposed development would not be consistent with Public Resources Code sections 30241 and 30242
“which require that the maximum amount of prime and non-prime agricultural lands remain agriculturally productive.” This finding is an inaccurate summary of the two sections quoted above at footnote 7 on page 737. Section 30241 requires
only
that prime agricultural land (defined by § 30113) be maintained in agricultural production.
We note that one of the rejected provisions of the Beilenson bill, proposed section 30215 (to effect policies 30c, 33a (2) and 36 of the Coastal Plan) required that
both
prime and nonprime land be maintained in agricultural use. As only 10-15 percent of the owners’ land is “prime agricultural land,” the pertinent provision is section 30242, which provides that other lands suitable for agriculture
shall not be converted
to nonagricultural use
unless such conversion would concentrate development
consistent with section 30250.
This language is substantially different from the rejected portions of the Beilenson bill: proposed section 30218 provided that nonprime agricultural land should not be converted from agricultural use, even in part, if that would “increase tax assessments on
nearby
agricultural parcels”; proposed section 30220 which stated that land divisions “shall not be permitted to reduce agricultural parcels to a size that could be uneconomic or impractical for continued agricultural production on the parcels in question
or on adjoining
parcels”; and proposed section 30221 which would not have allowed land
adjacent
to agricultural land to be divided if that would “have an adverse economic effect on the longterm preservation of agricultural lands” (italics added).
The Legislature in rejecting the above provisions and adopting section 30242 chose the more limited approach of permitting the conversion of nonprime agricultural land to nonagricultural use where such conversion would
concentrate development consistent with section 30250.
Hére, in view of the owners’ affidavits indicating that they would dedicate the land to agricultural use, there is no evidence of any conversion of the land to a nonagricultural use.
Section 30250, quoted so far as pertinent above at page 737, first requires that a new development shall not be located in a pre
viously undeveloped area
unless there are adequate public services and the development “will not have
significant adverse effects, either individually or cumulatively,
on coastal resources.”
The Commission did not find that the owners’ minor subdivision would have a
significant adverse effect.
Rather, the Commission’s finding as to sections 30241, 30242 and 30250 focused on its future adverse effect, as it “would encourage similar divisions of other large parcels” and threaten the continued viability of the mainly low intensive agriculture economy of the area. The Commission thus erroneously relied on the precedential impact of the owners’ proposed minor subdivision and the difficulty of rejecting other future requests for similar minor subdivisions. Further, the Commission could not base its refusal of the permit on such a speculative future contingency. The Commission clearly has the authority to prohibit any future development whose cumulative effect is both significant and adverse.
The Commission urges that its reference to “significant effect” is sufficient, and points to its reliance on section 21083,
a part of the California Environmental Quality Act (CEQA). We note that the particular language of this CEQA provision has been construed to include favorable as well as unfavorable effects on the environment
(Wildlife Alive
v.
Chickering
(1976) 18 Cal.3d 190, 206 [132 Cal.Rptr. 377, 553 P.2d 537]). As the Legislature did not repeat CEQA’s elaborate definition of cumulatively in section 30250, and specifically used the narrower term
“significant adverse
effect,” we do not think “probable future projects” can or should be read into the term “cumulatively,” as used in section 30250. Thus, the term should be given its everyday common sense definition. We conclude that the Commission erred in considering the precedential effect of the owners’ minor subdivision.
The evidence does not and cannot support a finding of a significant adverse effect. The addition of two residences and two barns on the two
smaller parcels, the increase in water use and additional traffic, while it may be significant, is not adverse. The Commission’s finding is not supported by the evidence and does not meet the statutory requirement.
We turn next to the second requirement of section 30250, namely, that land divisions shall be permitted only where 50 percent of the usable parcels in the area have been developed
and
uthe created parcels would be no smaller than the average size of surrounding par
cels” (italics added).
To ascertain the “surrounding parcels,” the Commission applied its interpretative guideline of the parcels within one-fourth of a mile of the property; thus, the Commission considered eight parcels. As these 8 parcels range in size from 5 to 750 acres, arid 5 are over 100 acres, the average (mean) size is 286 acres. While the use of the one-fourth mile guideline may not be unreasonable, per se, or in other cases, we think the Commission’s use of this guideline in the instant case was arbitrary. The record indicates that at the Regional Commission proceedings, the Regional Commission and the owners had agreed that the “surrounding area” was comprised of the 32 parcels along Stage Road between Pescadero and San Gregorio. This area has a distinctive rural and agricultural character, and is similar to the owners’ property. Of these 32 parcels, 22 have already been developed; 10 have not. Fifteen of the 32 parcels are under 16 acres in size;
4 are about 40 acres or more
and 13 are over 100 acres or more.
The record indicates that the Commission also determined that “average” meant the arithmetic mean, computed by adding the total acreage of the eight parcels within the quarter-mile radius and dividing this figure by the number of parcels. The result was the mean of 286 acres, which the Commission then determined made the proposed new parcels of 25 and 26 acres smaller than 50 percent of the “average” in the surrounding area. The Commission also reasoned that it was required to use an arithmetic definition of average in order to have an objective standard and to carry out the legislative intent of preventing “leap frog” development. The Commission’s approach ignores the fact that since
some of the surrounding parcels are so large, the arithmetic mean is necessarily “skewed,” even when properly computed on the basis of 32 parcels. Using this mean figure of 137, over % of the parcels (22 of 32) are “below average” and 40 percent of the parcels (13 of 32) are about 1/10 as large as the “average,” an absurd result.
The owners urge that if an arithmetic figure is appropriate, the arithmetic median (half above and half below) is more appropriate as it produces an average of 40 acres, the average (mean) size of the three new parcels to be created by their proposed minor subdivision.
The Legislature’s use of the term “average,” of course, is ambiguous. In an arithmetic sense, the term could describe either the mean, the median or the mode (the most frequently met figure).
While we can understand the Commission’s search for a readily ascertainable and objective arithmetic standard, both in terms of the one-quarter mile guideline, and the arithmetic mean, we do not think that the Legislature intended such a standard. As no particular definition for “average” was provided, we can only conclude that the Legislature used “average” in its everyday sense of the term, to mean typical or representative. Applying this definition to the 32 parcels in the surrounding area, the record indicates that the 25- and 26-acre size of the 2 parcels to be created is no smaller than the average size of the 32 surrounding parcels.
We conclude that the Commission also abused its discretion and acted arbitrarily in applying its one-quarter mile guideline and construing “average” as the arithmetic mean. It follows that the record does not support the Commission’s finding that the owners’ proposed minor subdivision was contrary to section 30250.
The Commission also found that because of the increase in traffic on Highway 1 and in water use, the owners’ proposed minor subdivision was prohibited by section 30254, set forth below.
The record indicates that this finding also was predicated on the precedential nature of the development and future traffic and water problems rather than the additional burden of the two additional residences and related farm buildings.
Specifically, the Commission found that as the instant subdivision could not be distinguished from many similar parcels, it would conflict with the requirement that
limited public services be reserved for coastal-dependent and visitor serving uses.
Section 30254, however, requires that the new development, because of its effect on limited existing services, would
preclude
coastal dependent and other preferred uses. No evidence in the record in the instant case supports such a conclusion. There is no indication of the location of the owners’ proposed minor subdivision in relation to existing preferred uses. Thus, the Commission’s finding was not supported by the record and provides no basis for the denial of the permit to the owners.
Finally, the Commission found that approval of the owners’ minor subdivision would prejudice the ability of local agencies to prepare an appropriate local coastal plan pursuant to section 30604, set forth, so far as pertinent below.
This finding also was based, in part, on the precedential nature of the instant minor subdivision and the result that “a pattern of land division would be committed.” The Commission’s finding also referred to the conflict between San Mateo’s innovative RM zoning and certain policies of the act, and the necessity for smoothly meshing the coastal planning of adjacent Santa Cruz County, which was “attempting” to implement a policy of keeping large parcels of land intact. The statute requires that new development not
prejudice the ability
of a local government to prepare a local program.
We do not think, however, that the Legislature intended the local coastal programs to require a moratorium on all developments until each local program is completed. As indicated in our above summary of the legislative history and purposes of the 1976 Coastal Act (as distinct from its predecessor), the Legislature was concerned with balancing protection of coastal resources with development.
The proceeding in question indicates that the Commission was not sufficiently aware of its admittedly difficult and complex case-by-case balancing responsibilities. We note that the instant case, unlike most, involves landowners in good faith seeking a minor subdivision three miles from the coast. No significant natural or scenic coastal resources or other areas designated for special protection, preservation or restoration are threatened. We conclude that the instant record does not support the Commission’s denial of the permit. However, the matter must be remanded to the Commission to permit the exercise of its proper discretion in imposing reasonable and appropriate conditions
(Jacobs
v.
State Bd. of Optometry
(1978) 81 Cal.App.3d 1022, 1034 [147 Cal.Rptr. 225];
Bank of America
v.
State Water Resources Control Bd.
(1974) 42 Cal.App.3d 198, 214 [116 Cal.Rptr. 770];
Larson
v.
City of Redondo Beach
(1972) 27 Cal.App.3d 332, 338 [103 Cal.Rptr. 592]).
The judgment is affirmed, and the cause remanded to the Commission to proceed in accordance with this opinion.
Rouse, J., and Miller, J., concurred.
A petition for a rehearing was denied April 24, 1980, and appellants’ petition for a hearing by the Supreme Court was denied June 4, 1980. Bird, C. J., and Newman, J., were of the opinion that the petition should be granted.