HomeMy WebLinkAbout01 - Supplemental ItemsSTEVEN G. POLIN, ESQ.
Attorney At Law
"RECEIVED AFTER AGENDA
PRINTED:" I I
SENT VIA ELECTRONIC MEAN
David Hunt, Esquire
City Attorney
City of Newport Beach
3300 Newport Blvd.
Newport Beach, CA 92663
Dear Mr. Hunt,
I -11-amb
November 27, 2009
3034 TENNnoN ST. N.W.
WASHINGTON, D.C. 20015
TEL (202) 331 -5848
FAx (202) 537 -2986
SPOLIN2@E maiKK.NEr
Re: Appeal of Yellowstone Women's First Step House, Inc.
RA 09- 004 -007
On November 25, 2009 (the night before Thanksgiving), counsel for Yellowstone
Women's First Step House, Inc.(hereinafter "Yellowstone ") was served with the City of Newport
Beach's staff report to the City Council in reference to the appeal mentioned above. Catherine
Wolcott of your staff emailed me at approximately 7:46 p.m. (e.s.t.) to advise me that the reports
and attachments were available for downloading at the City of Newport Beach's website.
Please be advised that Yellowstone is hereby amending its request for a reasonable
accommodation as follows:
0 Yellowstone is requesting areasonable accommodation that will allow it to maintain
a maximum occupancy of 12 residents at 1561 Indus Street, 1621 Indus Street; 1571 Pegasus Street;
20172 Redlands Drive, plus a live in manager for 1621 Indus Street and 20172 Redlands Drive.
1561 Indus and 1571 Pegasus are chartered as Oxford Houses and in accordance with the Oxford
House model, the house is democratically run, financially self - supported, and immediately expels
any resident that relapse. The democratic aspect of an Oxford House prohibits the use of a house
manager as the residents make all the decisions relating to the household, including the filling of
vacancies.
• Yellowstone is requesting as a reasonable accommodation that the City will treat each
of houses of its as a "single housekeeping unit" by waiving the requirement that all of the residents
be on a single lease as required in the definition of that term in NBMC §20.03.030.
• Yellowstone is requesting that the City apply all building, zoning, fire and life safety
codes to each of houses (other than those codes that are applicable to state licensed six and under
residential treatment facilities) in the same mannerthose code provisions are applied to either "single
David Hunt, Esquire Page 2
November 27, 2009
housekeeping units" or "single family uses." In addition, Yellowstone is requesting that the City
grandfather in the fire clearances Yellowstone received from Orange County for its houses prior to
the City's annexation of the Santa Ana heights in January, 2008.
• Yellowstone requests waiver ofthe occupancy limitation oftwo persons per bedroom
plus one staff member to determination maximum occupancy per house.'
Yellowstone offers its residents fellowship and the existence of a structured setting where
zero tolerance of alcohol and drug use is enforced. Moreover, residence at Yellowstone offers the
residents the sense of community with similarly situated persons in recovery and the opportunity to
reside in a stable alcohol and drug free environment. In addition, Yellowstone offers its residents a
self -paced recovery option and which gives each resident sufficient time for personal psychological
growth while avoiding the use of alcohol and other mood altering substances. Yellowstone differ
from other recovery programs because it allows each resident to gain stability in their lives, and
sufficient time for change and personal growth at their pace as long as they follow the rules of
residency. Residency in at Yellowstone gives the recovering alcoholic and drug addict an
opportunity to become a responsible, productive member of society, which is a goal the City should
embrace. Those not stricken with the disease of alcoholism or drug addiction often do not
understand the need to be around others who are striving for the same thing, learning to live on life's
terms without the need to use alcohol or drugs. "Little things" most members of society take for
granted are often new or relearned behavior for persons in recovery. These "little things" often
include learning that getting up every morning and going to work on time every day will result in
getting a pay check at the end of the week. This new or relearned behavior is embraced as a
cornerstone of the residents' recovery. Without a housing program such as that offered by
Yellowstone it is highly doubtful that its residents could live independently without relapsing into
active alcoholism and drug addiction.
Oxford House, Inc. assists in the establishment of housing for recovering addicts and
alcoholics that is financially self-supported, democratically run, and immediately expels anyone who
uses drugs or alcohol, inside or outside the house. There is no paid staff, counseling, therapy, or
house manager involved in the operation of the house. In an Oxford House the group behaves like
any family and makes group decision based on democratic procedures. Oxford House is nothing
more than a single family residence.
Oxford House residents are encouraged to rent single family dwellings located in good
neighborhoods. This means Oxford Houses are usually located in areas zoned for single family
dwellings.
'Such a limitation is a violation of the Fair Housing Act since this occupancy requirement
is not applied to related persons. City of Edmonds v.Oxford House, Inc. 514 U.S. 725(1995)
David Hunt, Esquire Page 3
November 27, 2009
Oxford Houses are not substance abuse centers, halfway houses, shelters nor community care
facilities. There is not treatment, counseling, therapy, or any type of health care service provided.
Oxford Houses are not licensed by the State of California nor are they required to be licensed. In
an Oxford House, as opposed to a halfway house, residents live there by choice. There is no house
manager, paid staff or other type of institutional personnel involved in the supervision or
management of the house. All decisions relating to the functioning of an Oxford House are made
democratically. An Oxford House manages its own finances and has its own bank account. There
is no testing for alcohol or drug use, nor are there any rules relating to curfews. Oxford Houses are
not halfway houses, nor are they a substitute for halfway houses.
Oxford Houses are neither rooming nor boarding houses. The residents of Oxford House -
Keystone Manor (1561 Indus) and Oxford House - Pegasus (1571 Pegasus) rent the entire premises .
rather than a single room. They have access to the entire house and all of the household facilities,
and live in the house as any other group of unrelated persons functioning as a single housekeeping
unit. The residents of the hous share all household responsibilities, including financial responsibility
for the rent and utilities, which they pay out of a single household checking account. They also share
in the cooking, shopping, cleaning and general care of the premises. The residents live together
purposefully to create a "family" atmosphere, where all aspects of domestic life are shared by the
residents. There are no special locks on the doors of the bedrooms. There is not staff, paid or
otherwise, living in the house or overseeing the house, and no treatment or professional services
provided at the premises.
Physically, the house is no different from any other single family house in the neighborhood.
It is simply a single family dwelling that is being rented by a group of individuals. The lease is
between the landlord and the residents of Oxford House. Oxford House - Keystone Manor and
Oxford House - Pegasus is in effect, an unincorporated association composed of the residents who
reside each Oxford House. Thus, there is a direct landlord- tenant relationship between the actual
residents of the premises and the landlord.
More important, there is no third party making any decision regarding the way these houses
operate, who resides in the house or how the houses are to be run. On the contrary, it is the residents
themselves who are making all of these decisions. Moreover, is there not an owner or operator at
the premises who makes decision regarding who lives in premises and how the premises would
function. Further, all of the household expenses, including rent, utilities and basic household
supplies, are paid for by only the residents. The payments are all equal, regardless of the size of the
room, since each resident is leasing the entire house, not just a room. The landlord is paid one
monthly check for rent, which reflects the rent for the entire house. Finally, if there is a vacancy, the
residents decide if they wish to fill it, and if so, the identity of the new occupant.
As should be obvious, not only is there no "operator" making decision regarding the running
of the premises but rather the owner has absolutely nothing to do with the identity of the new
individuals residing at the house, or how long the individuals stay at the house (other than simply
David Hunt, Esquire Page 4
November 27, 2009
establishing the lease for the entire property). All of these decisions are made exclusively by the
tenants who are renting the premises.
In sum, for the same reasons asserted, we submit that the use of Oxford House - Keystone
Manor and Oxford House - Pegasus, (which is based on the same model of self -run, self- supported
shared living as an intentional "family ") is likewise not a community care center, rooming or
boarding house, group home or halfway -house under any applicable definition. See Oxford House -
Evergreen v. City of Plainfield, 769 F. Supp. 1329 (D. N.J. 1991)(Oxford House is not a halfway
house. Residents share more than "household responsibilities" and meals. The residents make all
house decisions in a democratic fashion. But even more important, the support they lend each other
is therapeutic, in the same manner as that of a well - functioning family. The relationship is not
analogous to that between residents of a boarding house).' Oxford House, Inc. has a charter which
certifies that the house is conducting itself according to these principles.
Oxford House residents are considered to be the "functional equivalent' of a family for
several reasons. First, all the residents have access to the entire house. Second, all the residents
participate equally in the housekeeping functions of the house, i.e.. house chores, house finances.
Each resident, however, is responsible for his own food and cooking. Third is the quality of the
relationship among the residents. The emotional and mutual support and bonding given each Oxford
House resident in support of his/her recovery from drug addiction and alcoholism is the equivalent
of the type of love and support received in a traditional family. Finally, the living arrangement is not
based upon a profit motive. It is necessary that each of the Oxford Houses to be able to have a
'Also, See Oxford House, Inc., et al. v. Township of Cherry Hill, 799 F. Supp. 450, 452
(D.N.J. 1992), wherein the Court stated:
Oxford Houses are not health care facilities, rehabilitation centers, or supervised halfway
houses. They are simply residential dwellings rented by a group of individuals who are
recovering from alcoholism and drug addiction ... No professional treatment, therapy, or
paid staff is provided. Unlike a boarding house, where a proprietor is responsible to run
and operate the premises, at Oxford House, the residents are responsible for their own
food and care as well as for running the home. Because the house must be self -
supporting, each of the residents needs a source of income to pay his or her fair share of
the expenses.
See, United States v. Borough ofAudubon, 797 F. Supp 353, aff'd 968 F.2d 14 (3d Cir.
1992)(Oxford Houses are not health care facilities, rehabilitation centers, or supervised halfway
houses. Unlike those facilities, no professional treatment or paid staff are provided. Instead,
such houses are simply residential dwellings that are rented by a group of individuals who are
recovering from alcoholism or drug addiction.). The Court also held that Oxford House residents
are handicapped under the Federal Fair Housing Act, and that the residents drug and/or alcohol
addictions did substantially impair one or more of their major life activities.
David Hunt, Esquire Page 5
November 27, 2949
maximum of twelve residents in order for the residents to ameliorate the effects of the diseases of
alcoholism and drug addiction.
In addition, residents live in an Oxford House by choice. The choice is usually motivated
by the individual's desire not to relapse into drug and/or alcohol use again after that individual has
bottomed out, i&. lost jobs, home or family. It is also motivated by the desire that one must change
their lifestyle, the manner in which the conduct their affairs, and the need to become a responsible,
productive member of society. The final factor in determining that Oxford House residents are the
"functional equivalent" of a family is the fact that there are no limits as to how long a resident can
stay in Oxford House. Conceivably, an individual can stay in Oxford House a lifetime ifhe/she does
not relapse into drug and/or alcohol use, pay his/her rent on time, and does not engage in disruptive
behavior.
The requested accommodations are necessary so that this particular, group of recovering
alcoholics and drug addicts may have an equal opportunity to use and enjoy the dwelling of their
choice. As the court in Smith & Lee Associates, Inc. v. City of Taylor pointed out, equal opportunity
under the FHA in the zoning context is defined "as giving handicapped individuals the right to
choose to live in single - family neighborhoods." 142 F.3d 781, 794-95 (6th Cir.1996). Here, there
is substantial evidence that the requested accommodation is necessary to achieve an opportunity for
the disabled residents of the Orange Avenue properties to live in a residential area of the City of
Newport Beach. Absent the sober house setting, the individual residents of Yellowstone would not
be able to live in a supportive environment in a residential area, let alone a single - family residential
area. See also Oconomowoc Residential Prog., 300 F.3d at 784 ("When a zoning authority refitses
to reasonably accommodate these small group living facilities, it denies disabled persons an equal
opportunity to live in the community of their choice. "); Shanpvisions, Inc. v. Borough ofPlmn, 475
F. Supp. 2d 514, 526 (W.D. Pa. 2007) (holding that request for accommodation to definition of
"family" was necessary for a resident "to enjoy the housing of his or her choice").
Yellowstone' requested accommodations, to allow 12 residents plus a live in manager at the
two non Oxford Houses and 12 at the Oxford Houses, is necessary to afford the disabled residents
of the Yellowstone houses the equal opportunity to use and enjoy a dwelling. It has been found that
individuals who decide to live in sober housing programs, such as that offered by Yellowstone, are
allowed to engage in the process ofre overy from alcoholism and substance abuse, at their own pace
that the effects of the disease of alcoholism and drug addiction are alleviated. By living with other
persons who are in recovery, the residents do not have to face an alcoholic's or addict's deadliest
enemy: loneliness.' The requested accommodations are necessary since it will enhance the residents'
'Congress has also endorsed group homes as a tool in the fight against addiction.
Specifically, the federal government gives the states block grants to fight substance abuse. The
statute regulating states' use of this federal money expressly allows them to use their grants to
"establish and maintain the ongoing operation of a revolving fiord ... to support group homes for
recovering substance abusers[.]" 42 U.S.C. § 300x- 25(a).(loans for sober housing based on the
David Hunt, Esquire Page 6
November 27, 2009
recovery from alcoholism and drug addiction. See Wisconsin Cmty. Servs., Inc. v. City of Milwaukee,
465 F.3d 737,749 (7th Cir. 2006) (en bane) ( "[T]he statute requires only accommodations necessary
to ameliorate the effect of the plaintiffs disability so that she may compete equally with the
non - disabled in the housing market. ");Lapid - Laurel, L.L.C. v. Zoning Bd. ofAdjustmentofTwp. of
Scotch Plains, 284 F.3d 442, 460 (3d Cir. 2002) ( "[I]f the proposed accommodation provides no
direct amelioration of a disability's effect, it cannot be said to be necessary. ") (quotation marks
omitted); Forest City Daly Hous., Inc. v. Town off. Hempstead, 175 F.3d 144,152 (2d Cir. 1999)
(explaining that the relevant inquiry is whether "the non - complying features of the proposed
residence are necessary' inlightofthedisabi litiesofproposedresidents "); Oconomowoc Residential
Programs, Inc. v. City of Milwaukee, 300 F.3d 775, 784 (7th Cir. Wis. 2002)(An accommodation
is "necessary" if it will "affirmatively enhance a disabled plaintiffs quality of life by ameliorating
the effects of the disability. ") See also, Developmental Servs. ofNeb. v. City of Lincoln, 504 F. Supp.
2d 714, 723 (D. Neb. 2007) and New Hope Fellowship, Inc. v. City of Omaha, 2005 U.S. Dist.
LEXIS 39174 (D. Neb. 2005). Without the required accommodation residents of Yellowstone will
be denied the equal opportunity to live in a residential neighborhood." Oconomowoc Residential
Programs, Inc. v. City of Milwaukee, 300 F.3d at 784 (citations omitted).
In addition, a minimum oftwelve residents per address is necessary so that Yellowstone may
be economically viable. Yellowstone is required to make mortgage payments, pay property taxes,
insurance, utilities as well as expenses related to maintenance and upkeep on the properties. The
cost ofthe Yellowstoneprogram also includes providing "scholarships" for some residents who need
a safe and sober residence but can not afford the rent, absorbing the costs of bad checks or failures
to pay rent. Any household is entitled to bring in sufficient income to cover its living expenses. In
addition, Yellowstone as a provider of housing and services to recovering substance abusers is also
entitled to generate enough income to pay its business expenses. Even if there is a "commercial
nature" to the operation of the Yellowstone houses, this is not a basis for denying its request for a
reasonable accommodation. (The nature of group home living for the handicapped often requires
alternative living arrangements to effectuate the purpose of the FHA. The disabled are not able to
live safely and independently without organized, and sometimes commercial group homes. Groome
Resources Ltd V. Parish ofJe, fJerson °, 234 F.3d 192, 206 (5th Cir. 2000). The fact that the Glendora
Oxford House concept). "The purpose of the fund is to make loans for the costs of establishing
programs for the provision of housing in which individuals recovering from alcohol or drug
abuse may reside in groups of not less than 6 individuals," and these group homes must operate
under rules similar to the rules each resident agrees as a condition of living at Yellowstone Id. §
300x- 25(a)(1). Schwarz v. City of Treasure Island, 544 F.3d 1201, 1227 n. 16 (1 ith Cir. Fla.
2008)
°The Groome Court also held: "In addition to the commercial aspect of purchasing the
home, it must be noted that the granting of reasonable accommodations to Alzheimer's group
homes and other homes for disabled individuals also affects the commercial viability of care
organizations like Groome Resources. The district court found that the zoning ordinance, with its
David Hunt, Esquire Page 7
November 27, 2009
home is a business should not be the basis for denying an accommodation when reasonable and
necessary. Avalon Residential Care Homes, Inc. v. City of Dallas, 130 F. Supp. 2d 833, 841 (N.D.
Tex. 2000))5. Yellowstone' requests for a reasonable accommodation is reasonable and necessary
based on its need to pay normal household expenses as well as its business and operational expenses.
For the reasons stated above, it is requested that the City Council find that there does not
exist substantial evidence to support the findings of the hearing officer. It is further requested that
the City Council approve Yellowstone's modified requests for a reasonable accommodation.
cc: Christopher Brancart
Yellowstone Properties, LLC
Patrick Bobko
Dana Mulhauser
Paul E. Smith
limitation on four unrelated persons, "will make it economically unfeasible for plaintiff to
operate the proposed home." The court recognized that the economic viability of this care facility
was impeded by the refusal to grant an accommodation" Groome Resources, Ltd v. Parish of
Jefferson, 234 F.3d 192, 206 (5th Cir. La. 2000)
'Other circuits have also recognized that commercial group homes may be the only way
for disabled individuals to live in a residential community. See Hovsons, Inc. v. Township of
Brick, 89 F.3d l 096, 1105 (3d Cir. 1996); Smith & Lee Assocs., Inc. v City of Taylor, Mich., 13
F.3d 920, 931 (6th Cir. 1993).
"RECEIVY AFTER AGENDA
?R :.SE11:"
CITY OF NEWPORT BEACH
MEMORANDUM
TO: Mayor and Members of the City Council .
FROM: Catherine Wolcott, Deputy City Attom y
Kit Bobko, Special Counsel
DATE: December 2, 2009
RE: Yellowstone Women's First Step House, Inc. Appeal — November 27, 2009
Amendments to Reasonable Accommodation Requests
1561 Indus Street: RA No. 2009 -004 (PA2008 -105)
1621 Indus Street: RA No. 2009 -005 (PA2008 -106)
1571 Pegasus Street: RA No. 2009 -006 (PA2008 -107)
20172 Redlands Drive: RA No. 2009 -007 (PA2008 -108)
Preliminary Staff Analysis of Amended and New Requests and
Related Procedural Matters
This memorandum is prepared in response to a letter sent to the Office of the City Attorney on
November 27, 2009 ( "the November 27 letter") by counsel for Yellowstone Women's First Step
House, Inc. ( "Yellowstone ").
On February 20, 2009 and March 12, 2009, the Hearing Officer considered the following
requests and applications made by Yellowstone:
• Use Permits — Yellowstone applied for use permits to continue operation at their current
locations at their current capacities — 12 residents at 1561 Indus, 18 residents at 1621
Indus, 18 residents at 1571 Pegasus and 17 residents at 20172 Redlands (65 residents
total). The Hearing Officer denied Yellowstone's use permit applications.
• Reasonable Accommodation No. 1 — Yellowstone requested that each of its facilities
be treated as a single housekeeping unit. In January 2009 correspondence and at
March 12, 2009 public hearing, Yellowstone argued that they also operated as a single
housekeeping unit.
• Reasonable Accommodation No. 2 - Yellowstone asked for a waiver of the use permit
occupancy limits of two residents per bedroom plus one additional resident.
• Reasonable Accommodation No. 3 — Yellowstone asked for a waiver of use permit
fees due to financial hardship.
City Hall • 3300 Newport Boulevard • Post Office Box 1768 • Newport Beach, California 92659 -1768
Yellowstone Women's First Step House, Inc. - Amended RA Requests
December 2, 2009
Page 2
The November 27 letter states that it amends Yellowstone's reasonable accommodation
requests as follows:
• Yellowstone requests reasonable accommodation to continue to house 12 residents at
each of its four facilities (48 residents total.) (This request is generally related to
Yellowstone's overall goal of continuing operation at its four facilities in some
configuration, and is substantially similar to Yellowstone's requests for the granting of
use permits. Staff does not consider this to be a new request.)
• Yellowstone requests as a reasonable accommodation that the City treat each of its
houses as a single housekeeping unit, by waiving the requirement that all of the
residents be on a single written lease as required in the definition of single housekeeping
unit in Newport Beach Municipal Code ( "NBMC") section 20.03.030. (Staff considers
this a restatement of a previous request.)
Yellowstone requests the City grandfather the fire clearances it claims to have received
from the Orange County Fire Authority prior to the City's annexation of Santa Ana
Heights in January 2008. (This is a new request, but will not be further analyzed in this
memorandum. Staff has previously informed Yellowstone it will accept any fire
clearances granted by the Orange County Fire Authority prior to January 1, 2008, but
Yellowstone must provide evidence that such fire clearances were, in fact, granted. To
date, Yellowstone has provided evidence of only one completed fire clearance.)
Yellowstone requests that the City apply all building, zoning, fire and life safety codes to
each of its houses in the same manner as those code provisions are applied to single
housekeeping units or single family uses. (The request to apply zoning code provisions
as if the Yellowstone facilities were a single housekeeping unit is a restatement of
Yellowstone's previous request to be treated as a single housekeeping unit. The
remainder of the request is a new request, which was not raised before the Hearing
Officer.)
• Yellowstone requests waiver of the occupancy limitation of two per bedroom plus one
staff member to determine maximum occupancy per house.' (Staff considers this a
restatement of a previous request.)
As noted above, some of the requests listed in the November 27 letter are new requests rather
than amendments. Some are restatements of previous requests. Staff believes the issue of
Yellowstone's fire clearances from the Orange County Fire Authority is properly characterized
as a factual dispute rather than an accommodation request. The first request (to be granted an
accommodation to remain in operation with 12 residents per facility), however, could arguably
be considered an amendment of a previous request because it reflects Yellowstone's general
intent to request an accommodation that would allow it to continue operation at its current
locations.
'The NBMC operational standards for use permits set forth in Section 20.81A.050 require a maximum of
two residents per bedroom plus one additional resident. Staff is not considered under the NBMC.
Yellowstone Women's First Step House, Inc. — Amended RA Requests
December 2, 2009
Page 3
ISSUES:
On appeal of a decision of a Hearing Officer, can the City Council hear and consider
new or amended requests when the specific request was not submitted to the Hearing
Officer, but evidence was presented at the evidentiary hearing that (1) raises the issue
addressed in the request, and (2) would allow the City Council to determine whether
findings could have been made to grant or deny the request?
• On appeal of a decision of a Hearing Officer, should the City Council hear and consider
new or amended requests when the specific request was not submitted to the Hearing
Officer, and there was no evidence presented at the evidentiary hearing that raised the
issue addressed in the request?
RECOMMENDATIONS:
The NBMC states that on appeal from a reasonable accommodation request or use permit, the
City Council "shall determine whether the findings made by the Hearing Officer are supported by
substantial evidence presented during the evidentiary hearing," and may °sustain, reverse or
modify the decision of the Hearing Officer," or remand the matter to the Hearing Officer for
further consideration, which remand shall include specific Issues to be considered or direction
for a de novo hearing. See NBMC §§ 20.98.025A and 20.91A.040.
Staff recommends the City Council:
Review the administrative record, including material submitted by the applicant and the
public, analysis in the staff reports for the public hearings, the Hearing Officer's
resolutions, and the transcripts of the hearings in light of the new and amended
requests; and
2. Consider whether substantial evidence presented during the evidentiary hearing before
the Hearing Officer supports a determination that findings required to grant a reasonable
accommodation for any or all of the Yellowstone facilities to continue operation at their
current locations can be made;
3. Consider whether substantial evidence presented during the evidentiary hearing before
the Hearing Officer supports a determination that findings required to grant a reasonable
accommodation applying all building, zoning, fire and life safety codes in the same
manner as the City would apply those codes to single housekeeping units can be made;
4. For restated prior requests on which the Hearing Officer has already made a
determination, including the appellant's restated requests to treat Yellowstone facilities
as single housekeeping units and to waive the use permit operational condition limiting
residential care facilities to two residents per bedroom plus one additional resident, deny
the appeals filed by Yellowstone, and uphold and affirm the Hearing Officer's decisions
to deny Reasonable Accommodation No.'s 2009 -004, 2009 -005, 2009 -006 and 2009-
007.
DISCUSSION:
Yellowstone Women's First Step House, Inc. — Amended RA Requests
December 2, 2009
Page 4
1. The City Council May Consider All Evidence Presented During the Evidentiary
Hearing and Sustain, Reverse, or Modify the Hearing Officer's Decision.
The City Council does not have jurisdiction over the Hearing Officer's decision until he has
rendered a final decision on either a use permit or reasonable accommodation request. In the
context of an administrative hearing, a "final decision" is one that completely disposes of all
issues between the parties, and the Hearing Officer contemplates no further action on the
subject matter of his ruling. (See e.g., Griset v. FPPC (2001) 25 CalAth 688, 700 (when court's
ruling disposed of all causes of action framed by the pleadings, there remained no further
substantive issues for future determination).)
On appeal, the City Council's review of the Hearing Officer's final decision is limited to evidence
(i.e., facts) contained in the administrative record. The NBMC does not allow for the admission
of extra - record evidence on appeal, nor may the City Council undertake a de novo review of the
facts presented at that hearing. (See NBMC §§ 20.98.025A and 20.91A.040.) As a practical
matter, if the evidence does not appear In the administrative record, it does not exist for
purposes of the appeal. (See e.g., Eureka Citizens for Responsible Gov't v. City of Eureka,
(2007) 147 Cal.AppAth 357, 367 (finding extra -record evidence allowed only if unavailable at
trial or improperly excluded).) Moreover, the Council may only "sustain, reverse or modify" the
Hearing Officer's decisions; the Municipal Code does not permit the Council to decide issues for
the first time on appeal.
The Council may neither substitute its views for those of the Hearing Officer, nor reweigh
conflicting evidence presented to him. The, Hearing Officer's decisions are given substantial
deference on appeal. (See Sierra Club v. County of Napa (2004) 121 Cal.AppAth 1490, 1497.)
Accordingly, to the extent the November 27 letter addresses claims or theories raised below that
are based on evidence presented at the evidentiary hearing, the City Council may "sustain,
reverse or modify' the Hearing Officer's decision regarding those claims or theories. (See e.g.,
Hoffman -Haag v. Transamerica Ins. Co. (1991) 1 Cal.App.4th 10, 15 (noting on appeal a party
may change the legal theory he relied upon at trial, so long as the new theory presents a
question of law to be applied to undisputed facts in the record).)
Alternatively, to the extent the November 27 letter raises novel claims or theories based on facts
not presented at the evidentiary hearing, the Municipal Code gives the Council no authority to
admit the new facts, or to decide new claims. This follows the general rule that a party on
appeal must stick with the case it tried. (See e.g., Cable Connection, Inc. v. DIRECTV, Inc.
(2008) 44 CalAth 1334, 1350 n.8 ( "The rule is well settled that the theory upon which a case is
tried must be adhered to on appeal. A party is not permitted to change his position and adopt a
new and different theory on appeal. To permit him to do so would not only be unfair to the trial
court, but manifestly unjust to the opposing litigant.") (Internal citations omitted).
It is however, within the Council's discretion to remand the matter to the Hearing Officer for
further consideration or to obtain additional evidence on an issue. (See NBMC §§ 20.98.025A
and 20.91A.040.)
Yellowstone Women's First Step House, Inc. — Amended RA Requests
December 2, 2009
Page 5
There is Substantial Evidence in the Administrative Record that Supports the
Hearing Officer's Decision to Deny the Reasonable Accomodation Request to
Treat Yellowstone's Clients as a "Single Housekeeping Unit"
Under the substantial evidence test, the Council shall determine whether the Hearing Officer's
findings are supported by substantial evidence, and may "sustain, reverse or modify" that
decision? The Council may also remand the matter for further consideration, which remand
shall include specific issues to be considered or a direction for a de novo hearing. See NBMC
§§20.98.025(A) and 20.91A.040.
The party seeking review (in this case, Yellowstone) bears the burden of showing that the
Hearing Officer's decisions are not supported by substantial evidence in the record and the City
Council "must resolve reasonable doubts in favor of the administrative findings and
determination .0 (See Siena Club v. County of Napa (2004) 121 Cal.AppAth 1490, 1497.)
Yellowstone contends the findings required for granting the requested accommodations could
have been made. The November 27 letter notes that two of the Yellowstone facilities hold
Oxford House charters, and argues extensively about how Oxford Houses in general function as
single housekeeping units.
The issue of whether Yellowstone residents actually resided as a single housekeeping unit was
discussed in the February 20 and March 12 staff reports, and at the March 12, 2009 public
hearing. Some of the arguments contained in the November 27 letter cite facts inconsistent with
evidence in the administrative record, including Yellowstone's own written and verbal
statements to staff. The Hearing Offices had an opportunity to review the applicant's
sometimes- conflicting submissions and testimony, weigh the evidence, and make a
determination of whether Yellowstone's residents actually resided as a single housekeeping
unit. The evidence before the Hearing Officer included evidence that two of the Yellowstone
facilities held Oxford House charters at the time of the hearing. (HR, YS 00170, 00666, 00715Y
The Hearing Officer also had an opportunity to review the evidence in the record and submitted
upon direct testimony, and determine whether treating Yellowstone's residents as a single
housekeeping unit was reasonable and necessary. As shown in the Resolutions of Denial of
Yellowstone's Request No. 1, the Hearing Officer determined that it was not.
Ill. Substantial Evidence in the Administrative Record Supports a Determination to
Deny a Reasonable Accommodation Granting an Exemption from the Use Permit
Occupancy Limits of Two Residents per Bedroom Plus One Additional Resident
The Hearing Officer did not make a determination on this issue, because the occupancy limit
was a use permit requirement. As Yellowstone's use permit applications were denied, the
occupancy limit was considered a moot issue at the reasonable accommodation public hearing
2 "Substantial evidence" means evidence of a "ponderable legal significance ... reasonable in
nature, credible, of solid value, and relevant evidence that a reasonable mind might accept as
adequate to support a conclusion." Young v. Gannon (2002) 97 Cal.App.4th 209, 221.
3 Each page of the Hearing Record is numbered consecutively, beginning with HR. YS 00001..
This means "Hearing Record, Yellowstone, Bates No. 00001.0
Yellowstone Women's First Step House, Inc. — Amended RA Requests
December 2, 2009
page 6
on March 12, 2009, and the Hearing Officer did not made a determination or resolution in
relation to it.
In relation to Yellowstone's November 271h request for an accommodation that allows it to
continue operating its four facilities with 12 residents in each home, and an accommodation
waiving application of the NBMC's use permit occupancy limit of two residents per bedroom plus
one additional resident, a waiver of the use permit occupancy limit is not necessary for three of
the facilities to operate at the population level requested. The November 27 letter requests a
population of 12 residents at each facility. With the exception of the five- bedroom 1561 Indus,
all Yellowstone facilities have six bedrooms. (HR, YS 00022, 00290, 00561, 00838) This allows
three of the facilities to house more than the requested number of residents without exceeding
the occupancy limits required for use permits issued under NBMC Section 20.91A.050.
IV. The Hearing Officer Effectively Considered the Issue of Whether Yellowstone
Required a Reasonable Accommodation to Continue Operations at Its Current
Facilities
Although Yellowstone did not specifically request a reasonable accommodation that allowed it to
remain in operation at its current locations, it did request use permits to continue its current
operations. Within the context of the evidentiary hearing on Yellowstone's use permit
applications, the Hearing Officer considered evidence relevant to this request.
Staff recommends the City Council review staffs February 20 recommendations and findings in
the four February 20, 2009 use permit staff reports. In the February 20, 2009 use permit staff
reports, prepared prior to the City's discovery that the Yellowstone facilities were not legally
established, staff stated findings could be made to grant use permits to two of Yellowstone's
facilities, with a reduced population at each facility and operating conditions placed on each to
mitigate negative secondary impacts on neighboring properties. In the February 20, 2009 staff
report, staff recommended the use permits be granted to 1621 Indus and 20172 Redlands
because those two facilities were the farthest apart of the four facilities, and therefore created
the greatest dispersal.
IV. Yellowstone Raised the Fire Code and Life - safety Issues at the Evidentiary
Hearing, but There Is No Evidence in the Record to Support a Finding That an
Accommodation Can be Granted Allowing Its Facilities to be Treated as Single
Housekeeping Units for Building Code purposes
During the application process and at public hearings, Yellowstone addressed Building Code,
fire, and life safety issues only in the context of asserting that they held valid fire clearances
from the Orange County Fire Authority. At no time did Yellowstone assert in the administrative
record that fire clearances should be waived, or that California Building Code requirements for
single - family uses should be applied to its residential care uses.
Therefore, Yellowstone did raise issues regarding Building Code, and fire and fife- safety at the
evidentiary hearing, but failed to adduce sufficient evidence to support the new reasonable
accommodation request. Regarding fire clearances, Yellowstone was unable to produce valid
documentation. from the Orange County Fire Authority for any of its facilities other than 1571
Yellowstone Women's First Step House, Inc. — Amended RA Requests
December 2, 2009
Page 7
Pegasus. There is no evidence in the record that the City should apply Building Code
requirements to Yellowstone as if its residents were a single housekeeping unit.
CONCLUSIONS:
Staff concludes that the City Council may properly review the evidence in the record and
"sustain, reverse or modify" the Hearing Officer's decision regarding the question of whether a
reasonable accommodation is both necessary and reasonable to allow all or any of the
Yellowstone facilities to continue operation at their current location, with 12 resident clients per
facility.
Staff concludes Yellowstone failed to adduce sufficient facts at the evidentiary hearing to
support its claim on appeal that the City should grant a reasonable accommodation applying the
California Building Code requirements for single - family occupancies to its facilities. Staff
submits this issue was raised below, but there are no facts in the record that would support the
Council's action to "sustain, reverse or modify' the Hearing Officer's decision on appeal.
Staff recommends that, as to the restated requests to treat Yellowstone facilities as single
housekeeping units and to waive the use permit occupancy limit, the City Council deny the
appeals submitted by Yellowstone, sustaining and affirming the Hearing Officer's decisions, and
direct staff to prepare resolutions for adoption at the next City Council meeting.
If the City Council identifies evidence in the administrative record that allows it to make a finding
in favor of an accommodation that permits Yellowstone to remain in operation at all or any of Its
facilities, staff recommends that the City Council direct staff to prepare resolutions reflecting its
findings for adoption at the next City Council meeting.