Newsham v. Board of Permit Appeals
Newsham v. Board of Permit Appeals
Opinion of the Court
Brad Newsham, United Taxicab Workers, Michael K. Sealey, Cab Driver Association of San Francisco, and Bob Westermeyer (collectively, appellants) appeal from the trial court’s judgment denying their petition for a writ of mandate to prevent the Board of Permit Appeals and the Police Commission of the City and County of San Francisco (respectively, the Board and the Police Commission) from issuing 50 new taxicab permits. Appellants contend that the trial court should have granted their petition because the municipal code ordinance that authorized the Board to overrule the Police Commission’s decision to deny additional permits conflicts with both an initiative ordinance and the city charter.
I. The Pertinent Regulatory Framework
In the June 1978 primary election, the San Francisco electorate adopted Proposition K, entitled “Ordinance Providing for the Regulation of Taxicabs and Other Motor Vehicles for Hire.”
Under Proposition K, an applicant for a taxicab permit must apply to the Police Commission for its declaration of “public convenience and necessity.” (Prop. K, § 2, subd. (a).) At the hearing on the application, “the burden of proof shall be upon the applicant to establish by clear and convincing evidence which shall satisfy the Police Commission, that public convenience and necessity require the operation of the vehicle or vehicles for which permit application has been made, and that such application in all other respects should be granted.” (Ibid.) Proposition K further provides that “[t]he Police Commission, in determining whether or not public convenience and necessity exist for the issuance of a permit, may consider such facts as it deems pertinent, but must consider whether: [f| (a) The applicant is financially responsible and will maintain proper financial records. [] (b) The public will not be adequately or properly served unless the application is granted. [1] (c) The applicant has complied with all provisions of the Municipal Code, including pertinent motor vehicle laws. [*10 (d) The applicant will be a full-time driver, within the meaning of. . . this Ordinance, of the taxicab or other motor vehicle for hire.” (Prop. K, § 3, subds. (a)-(d).)
Subdivision (d) of section 1079 provides that, subject to the provisions of subdivision (e), “hearings on applications for declaration of public convenience and necessity shall be held at least once each calendar year for each type, kind or class of permit for which one or more applications are pending.” Subdivision (e) of section 1079, entitled “Consolidation of Hearings Permitted,” provides that “[t]he Police Commission may consolidate for hearing and determination of public convenience and necessity all applications for a given type, kind or class of permit. Any declaration of public convenience and necessity made by the Police Commission pursuant to such a consolidated hearing shall be valid and binding as to the total number of permits authorized for a particular type, kind or class of permit and as to each application included for hearing in said consolidated hearing and shall have continuing force and effect until the next subsequent Police Commission hearing on public convenience and necessity as to that particular type, kind or class of permit. Any applicant whose application is called for hearing at a consolidated hearing may rely upon the testimony and evidence adduced before the Police Commission by other pending convenience and necessity [sic], in the sole discretion and judgment of the individual applicant; provided, however, that the burden of proof in establishing public convenience and necessity shall remain on each applicant.” Under subdivision (f) of section 1079, “[a] declaration of public convenience and necessity made at or as a result of a consolidated hearing . . . may be appealed to the Board of Permit Appeals as set forth in Section 3.651 of the Charter of the City and County of San Francisco.”
Following the consolidated hearing described in subdivision (e) of section 1079, “. . . every applicant for a permit to operate a motor vehicle for hire
II. Factual and Procedural Background
On September 3, 1992, at a consolidated annual hearing, the Police Commission appointed a hearing officer to conduct a fact-finding hearing on the issue of public convenience and necessity. At the time of the hearing, there were 811 authorized taxicab permits in San Francisco and 987 outstanding applications for permits. At the conclusion of the factfinding hearing, which was held over the course of several days, the hearing officer found that the applicants had failed to meet their burden of establishing that public convenience and necessity required the issuance of additional taxicab permits. Accordingly, the hearing officer recommended that the Police Commission deny the applicants’ request for the issuance of additional permits. At a public hearing on May 5, 1993, the Police Commission adopted the hearing officer’s recommendation.
On June 2, 1993, one of the applicants for a taxicab permit, Yossedek Desta (Desta), appealed the Police Commission’s decision to the Board. On September 22, 1993, after hearing additional oral testimony, the Board voted to overrule the Police Commission’s decision and to issue 189 additional
On February 28, 1994, appellants filed a petition for a writ of mandate in the trial court seeking to prevent the Board and the Police Commission from issuing the 50 additional taxicab permits. On May 13, 1994, the trial court granted Joseph Barsse, Cab Drivers for Fifty More Cabs, and George Fanourgiakis (collectively, Barsse) leave to intervene in the action. The trial court denied appellants’ petition for a writ of mandate in a written decision dated October 31,1994, and later entered judgment in favor of the Board and the Police Commission. Appellants have filed a timely notice of appeal.
III. Discussion
A. Challenges to Section 1079
Appellants argue that section 1079 is void because it conflicts with the provisions of Proposition K. (See Rossi v. Brown (1995) 9 Cal.4th 688, 714-715 [38 Cal.Rptr.2d 363, 889 P.2d 557] [initiative measure may be amended or repealed only by the electorate].) Appellants’ argument, which
The premise underlying appellants’ argument—that section 1079 requires the Police Commission to utilize a consolidated hearing procedure—is simply mistaken. The pertinent subdivision of section 1079 is entitled “Consolidation of Hearings Permitted’ and provides that “[t]he Police Commission may consolidate for hearing and determination of public convenience and necessity all applications for a given type, kind or class of permit.” (§ 1079, subd. (e), ante, p. 933, italics added.) In other words, the Police Commission has the discretion to utilize a consolidated hearing procedure. It is not required to do so.
As a practical matter, consolidation often makes eminent sense. One of the key factors in the public convenience and necessity determination, whether “[t]he public will not be adequately or properly served unless the application is granted” (Prop. K, § 3, subd. (b), ante, p. 932), is usually best evaluated with reference to the applicant pool as a whole. It is senseless to require the Police Commission to rule on the question of individual eligibility for literally hundreds of permit applicants when all or most of the outstanding applications are likely to be denied on the basis of the public service factor alone. Appellants concede as much in their opening brief, where they note that “[a]t the level of the Police Commission, appellants have no specific objection to consolidating the hearings for individuals on the subject of whether new taxicabs are needed, when to do so is useful and efficient.”
Appellants’ real objection seems to be to the appellate review conducted by the Board. According to appellants, the language of Proposition K, its legislative history, and the legislative history of the attempts to amend or repeal it, all demonstrate that the electorate intended the Police Commission, not the Board, to have the final say as to whether the taxicab fleet should be expanded. (See, e.g., Prop. K, § 2, subd. (a), ante, p. 932 [applicant must “satisfy the Police Commission” on the issue of public convenience and necessity].) We cannot agree.
Throughout their briefing, appellants attempt to characterize the Police Commission’s decision at the consolidated public convenience and necessity hearing as a “preliminary regulatory finding” and the appeal therefrom as “an impermissible interlocutory appeal.” Appellants claim that the Police Commission’s decision is not final because even if the Police Commission decides not to expand the taxicab fleet, applicants receive permits “all the time” when existing permits are surrendered.
Appellants also contend that section 1079 conflicts with section 3.651 of the Charter of the City and County of San Francisco by allowing “class action litigation on the propriety of regulatory decisions within City government.” Appellants’ characterization of the Board’s role is mistaken. If the Police Commission elects to follow the consolidated hearing procedure set
In short, since section 1079 is consistent with both Proposition K and section 3.651 of the Charter of the City and County of San Francisco, the consolidated hearing procedure used in this case was valid.
B., C.
IV. Disposition
The judgment is affirmed, with costs to the Police Commission, the Board, and Barsse.
Strankman, P. J., and Stein, J., concurred.
A petition for a rehearing was denied July 17, 1996, and appellants’ petition for review by the Supreme Court was denied September 18, 1996.
Appellants raise two additional contentions, which we reject in the unpublished portion of this opinion.
The provisions of Proposition K are codified as appendix F to the Charter of the City and County of San Francisco.
Section 3.651 of the Charter of the City and County of San Francisco provides, in pertinent part, as follows: “Any applicant for a permit or license who is denied such permit or license by the department authorized to issue same, or whose license or permit is ordered revoked by any department, or any person who deems that his interests or property or that the general public interest will be adversely affected as the result of operations authorized by or under any permit or license granted or issued by any department, may appeal to the board of permit appeals. Such board shall hear the applicant, the permit-holder, or other interested parties, as well as the head or representative of the department issuing or refusing to issue such license or permit, or ordering the revocation of same. After such hearing and such further investigation as the board may deem necessary, it may concur in the action of the department authorized to issue such license or permit, or, by the vote of four members, may
Section 1081 of the San Francisco Police Code requires the Police Commission to consider the factors set forth in section 3, subdivisions (a), (c), and (d), of Proposition K (see, ante, at p. 932) in determining individual eligibility.
The issuance of 189 additional taxicab permits would have brought the total number of authorized permits to 1,000, the same number proposed in Proposition Y, an initiative slated for the then upcoming November 2, 1993, election. Proposition Y was ultimately defeated at the polls.
In his respondent’s brief, Barsse contends that we should dismiss this appeal as moot. In support of this contention, Barsse requests that we take judicial notice of the Police Commission’s May 1995 decision to continue with 861 taxicab permits, the 811 permits outstanding at the time of the Police Commission’s May 1993 decision plus the 50 additional permits that the Board ordered the Police Commission to issue. Barsse claims that the 1995 decision supplants the decision at issue here.
We deny Barsse’s request for judicial notice and decline to dismiss the appeal as moot. The Police Commission’s 1995 decision demonstrates nothing more than that the Police Commission complied with the Board’s order to issue 50 additional permits, something that it was legally required to do. The decision does not demonstrate that the Police Commission somehow ratified or approved of the Board’s order. Indeed, in correspondence with appellants’ counsel, the city attorney has conceded that the issuance of the 50 additional permits does not render this appeal moot or preclude relief.
Prior to the enactment of Proposition K, taxicab permits were transferable and were exchanged between private parties for consideration. Proposition K compelled all existing permit holders to surrender their permits in exchange for new permits which were “nontransferable and non-assignable either expressly or by operation of law.” (Prop. K, § 4, subd. (b); see generally, O’Connor v. Superior Court (1979) 90 Cal.App.3d 107, 110-111 [153 Cal.Rptr. 306].)
See footnote, ante, page 930.
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