Puget Sound Energy, Inc., App/cross-resp v. East Bellevue Community Council, Et Ano., Resp/cross-app

Court of Appeals of Washington·Decided January 30, 2017·No. 74464-0·Unpublished

Opinion

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

PUGET SOUND ENERGY, INC., No. 74464-0-1 (consolidated with

Appellant/ No. 74465-8-1) CO

O

Cross Respondent,

DIVISION ONE

EAST BELLEVUE COMMUNITY COUNCIL, a community municipal corporation,

Respondent/ UNPUBLISHED Cross Appellant,

FILED: January 30. 2017

CITY OF BELLEVUE, a first class city organized pursuant to Washington law,

Respondent.

Cox, J. — The primary issue in this Land Use Petition Act (LUPA) appeal is whether Puget Sound Energy Inc. (PSE) meets its burden to show that the EBCC's disapproval within its area of the city of Bellevue's approval of a conditional use permit was improper. Another issue is whether the EBCC lacks authority to review the shoreline conditional use permit approved by the city of Bellevue.

We hold that RCW 35.14.040(3) does not give the EBCC authority to review shoreline conditional use permits approved by Bellevue. We affirm the trial court decision in this respect.

We also hold that PSE meets its burden under RCW 36.70C.130 to show that the EBCC's disapproval within its area of Bellevue's approval of PSE's conditional use permit was improper. Accordingly, we reverse the trial court's decision in this respect.

PSE seeks to improve electrical service reliability in Bellevue by looping an overhead transmission line in its Lake Hills substation with its Phantom Lake substation. PSE applied to Bellevue for a conditional use permit and a shoreline conditional use permit to construct a 2.89 mile, 115kV transmission line connecting these two substations. The proposed line is to run along N.E. 8th Street, 148th Avenue N.E. and S.E., S.E. 16th Street, and 156th Avenue S.E. This is partially within the EBCC's area.

The EBCC is a community council, established in 1969 when Bellevue annexed the EBCC area. The northern boundary of this area is N.E. 8th Street. This area also includes 148th Avenue S.E. The service areas for the two respective substations to be linked by the project are only partially within the EBCC's area.

By virtue of Bellevue's annexation of the EBCC area, RCW 35.14.040 provides the EBCC authority to affect whether land use ordinances approved by Bellevue become effective within the EBCC area. We discuss this statute and its application more fully later in this opinion.

In October 2014, Bellevue's Development Services Department recommended approval, subject to conditions, of PSE's application for a conditional use permit and a shoreline conditional use permit. This followed review of the applications under Washington's State Environmental Policy Act (SEPA) and the issuance of a Mitigated Determination of Non-Significance (MDNS). No appeal followed the MDNS, which stated that PSE's project "does not have a probable significant adverse impact upon the environment."

Thereafter, a hearing examiner conducted a public hearing and recommended that the Bellevue City Council approve PSE's application for both permits. The council approved both permits by its Ordinance No. 6226.

In June 2015, the EBCC passed its Resolution No. 550. It did so after conducting its own hearings. The resolution includes 16 numbered paragraphs of "findings and conclusions" in support of the resolution. In its resolution, the EBCC disapproved within its area Bellevue's Ordinance No. 6226.1 In July 2015, PSE commenced this LUPA action to challenge the EBCC's disapproval within its area of Bellevue's ordinance. The trial court concluded that PSE failed to meet the standards set forth in RCW 36.70C.130 to overturn the EBCC's resolution. The trial court also determined that the EBCC lacks jurisdiction to review Bellevue's approval of the shoreline conditional use permit.

PSE appeals, and the EBCC cross appeals.

1 Administrative Record 3016-21; Clerk's Papers at 20-25.

LUPA

PSE argues that the trial court improperly upheld the EBCC's disapproval of the ordinance. We agree.

LUPA governs judicial review of land use decisions.2 A "land use decision" is "a final determination by a local jurisdiction's body or officer with the highest level of authority to make the determination, including those with authority to hear appeals . . . ."3 Under LUPA, we sit in the same position as the superior court and apply the standards provided in RCW 36.70C. 130(1) to the administrative record.4 These standards permit us to grant relief from a land use decision only if the party seeking relief establishes that one of the six standards under RCW 36.700130(1 )(a) through (f) has been met.5

2 Durland v. San Juan County, 182 Wn.2d 55, 63, 340 P.3d 191 (2014).

3 RCW 36.700020(2).

4 Dep't of Transp. v. City of Seattle. 192 Wn. App. 824, 836, 368 P.3d 251 (2016).

5 Id.

Based on the parties' briefing, the only standards at issue in this case are subsections (c)-(e), which state:

(c) The land use decision is not supported by evidence that is substantial when viewed in light of the whole record before the court;

(d) The land use decision is a clearly erroneous application of the law to the facts;

(e) The land use decision is outside the authority or jurisdiction of the body or officer making the decision.161

Decision Not Supported By Substantial Evidence PSE argues that substantial evidence does not support the EBCC's Resolution No. 550. We agree.

Under RCW 36.70C.130(1)(c), we must determine whether substantial evidence supports the land use decision "when viewed in light of the whole record before the court." Thus, we must determine "whether a fair-minded person would be persuaded by the evidence of the truth of the challenged findings."7 PSE argues that its project is consistent with Bellevue's comprehensive plan, which reflects Bellevue's effort to balance the city's needs with its appearance and character. PSE's opening brief focuses on paragraphs 3, 5, 9, 10, 11, 12, 13, 15, and 16 of the EBCC's findings and conclusions. The EBCC

6 RCW 36.700130(1).

7 Lauer v. Pierce County. 173 Wn.2d 242, 252-53, 267 P.3d 988 (2011).

responds by discussing paragraphs 3, 5, 6, 9, 10, 11, 12, 13, 14, and 16. Thus, there are only eight paragraphs—3, 5, 9, 10, 11, 12, 13, and 16—that have been briefed by both parties. Accordingly, we focus on these paragraphs to determine whether PSE has met its burden under LUPA to overturn the EBCC's resolution.

Paragraph No. 3

PSE argues that this paragraph is not supported by substantial evidence in the record. We agree.

This paragraph of the EBCC's findings and conclusions states:

The Hearing Examiner's Findings of Fact, Conclusions of Law and Recommendation that the decision criteria for a Conditional Use Permit (CUP) set forth in Land Use Code (LUC) 20.30B.140 have been met is not supported by material and substantial evidence.

Specifically, the conditional use is not consistent with the Comprehensive Plan. LUC 20.30B.140.A (Hearing Examiner Record at 149C, 180C).'8]

This paragraph states that no "material and substantial evidence" supports the hearing examiner's decision. The citation in this paragraph to LUC 20.30B.140(A) shows that the focus of this paragraph is on the hearing examiner's conclusion that the conditional use is consistent with the

comprehensive plan as required by the land use code.9 Turning to the hearing examiner's decision, we conclude that it is

supported by substantial evidence in the record. Specifically, it cites Bellevue's detailed staff report as well as attachment E to the report, which is a detailed

8 Administrative Record at 3018.

9 Administrative Record at 2179; Clerk's Papers at 61.

comprehensive plan policy analysis. The hearing examiner's conclusion is further supported by other specific evidence in the record.

Paragraph 3 of the EBCC's resolution fails to explain why this evidence, cited by the hearing examiner to support his conclusion that the permit is consistent with Bellevue's comprehensive plan, is not substantial. It is unpersuasive to state in conclusory fashion that no substantial evidence supports the hearing examiner's decision without explaining why this is so.

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Puget Sound Energy, Inc., App/cross-resp v. East Bellevue Community Council, Et Ano., Resp/cross-app, (Wash. Ct. App. 2017).

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