Appendix — City of Colorado Springs v. Board of County Commissioners

Supreme Court brief1995

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(n) Supreme Court, U.S. :

FILED

O5 42850 5-195

No.

oe OF -FHE-CLERK

In The

Supreme Court of the United States

October Term, 1995

+

CITY OF COLORADO SPRINGS AND CITY OF

AURORA, COLORADO, MUNICIPAL CORPORATIONS,

Petitioners,

THE BOARD OF COUNTY COMMISSIONERS OF THE

COUNTY OF EAGLE, STATE OF COLORADO, et al.,

Respondents.

+

Petition For A Writ Of Certiorari To The

Colorado Court Of Appeals

&

APPENDIX TO PETITION FOR

WRIT OF CERTIORARI,

VOLUME II, Pages 157a to 319a

¢

Mark T. PIFHER*

JoHN M. D1ncess

DUNCAN, OSTRANDER,

VARNELL & Dincess, P.C.

7800 East Union Avenue

Suite 200

Denver, CO 80237

Grecory L. JOHNSON

Assistant City Attorney,

Utilities

30 S. Nevada, Suite 601

Colorado Springs, CO

80903

JONATHAN C. DEHMLOW

ANDERSON, GIANUNZIO,

Dupe, PIFHER & LEBEL, P.C.

104 S. Cascade Avenue

Suite 204

Colorado Springs, CO

80903

(719) 632-3545

*Counsel of Record

COCKLE LAW BRIEF PRINTING CO., (800) 225-6964

OR CALL COLLECT (402) 342-2831

Appendix A:

Appendix B:

Appendix C:

Appendix D:

Appendix E:

Appendix F:

Appendix G:

App. i

INDEX TO APPENDICES

VOLUME I

The decision of the Colorado Court of

Appeals reported at 895 P.2d 1105 (1994).

App. 1a-33a.

Relevant Portions of the FLPMA permit

issued for the Homestake Water Project

(“Project”) by the United States Forest

Service. App. 34a-107a.

Relevant portions of the Section 404 per-

mit issued for the Project by the U.S.

Army Corps of Engineers. App.

108a-134a.

The decision of the Colorado Water Qual-

ity Control Division certifying that the

Project met all applicable state water

quality requirements. App. 135a-14la.

The resolution of the Eagle County Board

of County Commissioners (“County”),

dated February 22, 1988, denying the

local land use permits for the Project.

App. 142a-156a.

VOLUME II

The resolution of the Eagle County Board

of County Commissioners (“County”),

dated December 17, 1991, denying the

local land use permits for the Project.

App. 157a-16la.

The order of the Eagle County District

Court dated July 22, 1988, dismissing for

lack of standing the claims of the cities

brought under the Fifth and Fourteenth

Appendix

Appendix

Appendix

Appendix

Appendix

Appendix

Appendix

App. ii

Amendments to the United States Consti-

tution. App. 162a-167a.

The order of the Eagle County District

Court dated July 22, 1988, dismissing for

lack of standing the claims of the cities

brought under the Fifth and Fourteenth

Amendments to the United States Consti-

tution. App. 168a-172a.

The initial decision of the Eagle County

District Court remanding the case to the

Board of County Commissioners. App.

173a-191a.

The decision of the Eagle County District

Court finding that the County had denied

the cities’ due process and acted in an

arbitrary and capricious manner in deny-

ing the requested permits. App.

192a-206a.

The order of the Eagle County District

Court vacating that portion of its prior

decision which had required the County

to issue the permits. App. 207a-212a.

The Colorado Court of Appeals decision

denying the cities Petition for Rehearing.

App. 213a.

The Colorado Supreme Court decision

denying the cities’ Petition for Writ of

Certiorari. App. 214a-216a.

Relevant portions of the pleadings and

briefs below indicating the manner in

which the federal questions were raised

App. 217a-269a.

Appendix O:

Appendix P:

Appendix Q:

Appendix R:

Appendix S:

Appendix T:

Appendix U:

Appendix V:

Appendix W:

App. ili

Relevant provisions of the Colorado Land

Use Act, C.R.S. §§ 24-65.1-101-502 (1988)

are attached as App. 270a-279a.

Relevant provisions of the Eagle County

land use regulations promulgated pur-

suant to C.R.S. § 24-65.1-101-502 (1988)

are attached as App. 280a-295a.

Relevant provisions of the Federal Land

Policy Management Act, 43 U.S.C.

§ 1700-1784 (1986), are attached as App.

296a-300a.

Relevant provisions of the National Forest

Management Act, 16 U.S.C. §§ 472a, 476

note, 500, 513, 515, 516, 518, 521b, 528

note, 576b, 581h, 594-2 note, 1600 note,

1600-1614 (1985), are attached as App.

301a-303a.

Relevant provisions of the Organic Act of

1897, 16 U.S.C. §§ 475-481 (1985), are

attached as App. 304a-305a.

Relevant provisions of the Multiple Use

and Sustained Yield Act, 16 U.S.C.

§§ 528-531 (1985), are attached as App.

306a-307a.

The text of the Property Clause of the

United States Constitution, art. IV, § 3, cl.

2, is set forth at App. 308a.

The text of the Fifth and Fourteenth

Amendments to the United States Consti-

tution are attached as App. 309a-311a.

The text of the Supremacy Clause of the

United States Constitution, art. VI, cl. 2, is

set forth at App. 312a.

Appendix X:

Appendix Y:

Appendix Z:

App. iv

Relevant portions of P.L. 96-560, 94 Stat.

3266 (1980) are attached as App. 313a.

Relevant portions of the Code of Federal

Regulations, 1983 edition, governing the

use of federal lands, 36 C.F.R. Part 200

through 299, are set forth at App.

314a-318a.

Map of Homestake Delivery System is

attached as App. 319a.

157a

APPENDIX F

Commissioner GUSTAFSON moved adoption of

the following Resolution:

BOARD OF COUNTY COMMISSIONERS

COUNTY OF EAGLE, STATE OF COLORADO

RESOLUTION NO. 91-104

REGARDING THE ORDER REMANDING PERMIT

APPLICATION CONSIDERATION

HOMESTAKE WATER DIVERSION PROJECT, PHASE II

WHEREAS, the Cities of Colorado Springs and

Aurora (hereinafter the “Cities” or the “Applicant”) sub-

mitted a consolidated application for the construction of

the second of four phases of a water diversion project

commonly referred to as the Homestake Water Diversion

Project; and

WHEREAS, after public hearing, said consolidated

application was denied by the Eagle County Board of

County Commissioners (the “Board”) pursuant Resolu-

tion 88-15; and

WHEREAS, said denial is the subject of an appeal

under C.R.C.P. 106 to the Eagle County District Court,

Case No. 88 CV 142; and

WHEREAS, the Court received cross motions for

Summary Judgment; and

WHEREAS, on July 2, 1991, the Eagle County District

Court, among other rulings, ordered the applications for

a Permit for a Major Extension of a Water Project, for a

Permit for Efficient Utilization of Municipal Water Pro-

ject, and for the Special Use Permit, remanded to the

158a

Eagle County Board of Commissioners for reconsidera-

tion in conformance with the Court’s written order of that

date; and

WHEREAS, the Court determined that any reliance

upon certain findings of fact made by the Board under

6.04.15.1.p, 6.04.15.1.1, 6.04.15.1.b, 6.05.15.1.b of the Eagle

County administrative regulations, was improper; and

WHEREAS, with regard to the application for a Spe-

cial Use Permit, the Court determined that any reliance

upon certain findings of fact made by the Board under

the Special Use Permit criteria 2.09.02.13.f, 2.09.04.1.a,

and 2.09.04.1.b, was improper; and

WHEREAS, upon proper notice, the Board held hear-

ings pursuant to said remand on October 21, 1991 and

November 25, 1991; and

WHEREAS, the Cities moved for the submission of

and inclusion of certain federal agency documents into

the record of the decision; and

WHEREAS, the Board allowed and received legal

arguments by the parties regarding whether the criteria

for approval, as limited by the Court’s July 2, 1991 order,

were satisfactorily met by the evidence and testimony

presented with the application; and

WHEREAS, the Board deliberated upon the issue of

whether the criteria for approval, as limited by the

Court’s July 2, 1991, order, were satisfactorily met by the

evidence and testimony presented with the application.

NOW, THEREFORE, BE IT RESOLVED BY THE

BOARD OF COUNTY COMMISSIONERS OF THE

COUNTY OF EAGLE, STATE OF COLORADO:

Ota 6 a ONG Ny ely Nn 9 till Db Rs COA att D Ortop lw ding se el

159a

THAT, the record of testimony and evidence used in

the consideration of the application is closed and shall

not be reopened.

THAT, the Cities’ motion for the submission of and

inclusion of certain federal agency documents be denied.

THAT, with regard to the application for a Permit for

a Major Extension of a Water Project, Section 6.04.15.2 of

Eagle County’s administrative regulation entitled “Major

Extensions of Existing Domestic Water and Sewage Treat-

ment Systems” states that “(t)he permit shall be denied if

the applicant fails to satisfy all the criteria outlined in

Subsection 6.04.15.1.”

THAT, with regard to the application for a Permit for

Efficient Utilization of Municipal Water Project, Section

6.05.15.2 states that “(t)he permit shall be denied if the

applicant fails to satisfy all the criteria outlined [within

6.05.15.1].”

THAT, in light of the requirements of Sections

6.04.15.2 and 6.05.15.2 of the administrative regulations,

and the remaining finding of fact within Sections I and II

of the Findings of Fact in the Resolution 88-15, the Board

hereby reaffirms its denial of the application of the Cities

for the following designated activities of state interest:

A. Major extension of an existing water collection

system (Section 6.04); and

B. Efficient utilization of a municipal water project

(Section 6.05).

THAT, there remain certain critical findings listed

within Section III of the Findings of Fact in the Resolution

88-15, specifically:

160a

“3. (2.09.02.13.e) The Project may adversely affect

fish, wildlife or migratory ranges.

4. (2.09.02.13.e) Evidence presented at the hearing

failed to demonstrate that the adverse effects on fish,

wildlife or migratory ranges can be adequately miti-

gated.”

THAT, in light of the remaining critical findings of

fact within Section III of the Findings of Fact in the

Resolution 88-15, the Board hereby reaffirms its deter-

mination that the Applicant has failed to satisfy the crite-

ria of Section 2.09 and therefore reaffirms its denial of the

application of the Cities for a Special Use Permit.

THAT, this resolution and the related deliberations

have been undertaken, notwithstanding any objections

the Board may have to the Court’s ruling as to the author-

ity of the Board to consider, regulate, and deny this

application, in an effort to comply with the remand of the

Court. The Board reserves all rights of appeal and shall

not be estopped by the passage of this resolution from

arguing on appeal its authority in excess of the limits

placed upon it under the remand.

The Board finds, determines and declares that this

Resolution is in the best interests of the health, safety and

welfare of the County of Eagle, State of Colorado.

MOVED, READ AND ADOPTED by the Board of

County Commissioners of the County of Eagle, State of

Colorado, at its regular meeting held the 17th day of

December 1991.

16la

[seal] COUNTY OF EAGLE,

/s/ Johnette Phillips STATE OF COLORADO,

Clerk to the Board By and Through Its

BOARD OF COUNTY

COMMISSIONERS

of County

Commissioners

By: /s/ George A. Gates

George A. Gates,

Chairman

/s/ Richard L

Gustafson

Richard L.

| Gustafson,

| Commissioner

:

:

/s/ Donald H. Welch

. Donald H. Welch,

Commissioner

Commissioner ___ seconded adoption of the forego-

| ing resolution. The roll having been called, the vote was

| as follows:

Commissioner George A. Gates ane

; Commissioner Richard L. Gustafson eas

Commissioner Donald H. Welch Oh

This Resolution passed by __ vote of the Board of

County Commissioners of the County of Eagle, State of

Colorado.

162a

APPENDIX G

DISTRICT COURT, COUNTY OF EAGLE, STATE OF

COLORADO

Civil Action No. 88 CV 142

ORDER

CITY OF COLORADO SPRINGS and CITY OF AURORA,

Colorado Municipal Corporations,

Plaintiffs,

vs.

1. THE BOARD OF COUNTY COMMISSIONERS OF

THE COUNTY OF EAGLE, STATE OF COLORADO;

2. GEORGE A. GATES, DONALD H. WELCH, RICH-

ARD L. GUSTAFSON, in their official capacities as

individual members of said Board;

3. THE BOARD OF COUNTY COMMISSIONERS OF

THE COUNTY OF EAGLE, STATE OF COLORADO,

in its capacity as the permitting authority under

Section 24-65.1-101, et seq., C.R.S.;

4. THE EAGLE COUNTY PLANNING COMMISSION;

5. CHARLES RIDGWAY, DAVID SLEMON, DENNIS

GELVIN, DONALD PRICE, in their official capacities

as individual members of said Commission;

THE COUNTY OF EAGLE, STATE OF COLORADO;

AVON METROPOLITAN DISTRICT;

TOWN OF AVON, COLORADO;

COLORADO COUNCIL OF TROUT UNLIMITED;

0. COLORADO RIVER OUTFITTERS ASSOCIATION;

ae

42.

12.

13.

14.

15.

16.

17.

18.

19.

20.

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24.

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163a

DIVISION OF WILDLIFE, STATE OF COLORADO;

EAGLE COUNTY SHERIFF, in his official capacity;

HOLY CROSS WILDERNESS DEFENSE FUND;

JAMES FRANKLIN LAMONT;

RED CLIFF WATER AND SANITATION DISTRICT;

TOWN OF EAGLE, COLORADO;

TOWN OF GYPSUM, COLORADO’

TOWN OF MINTURN, COLORADO;

TOWN OF RED CLIFF, COLORADO;

TOWN OF VAIL, COLORADO;

UPPER EAGLE REGIONAL WATER AUTHORITY;

UPPER EAGLE VALLEY SANITATION DISTRICT;

VAIL VALLEY CONSOLIDATED WATER DISTRICT;

VAIL ASSOCIATES, INC.; and

EAGLE COUNTY HISTORICAL SOCIETY,

Defendants.

THE COURT, having considered the Motion to Dis-

miss Plaintiffs’ Sixth, Twelfth and Thirteenth claims filed

by Defendants Board of County Commissioners of the

County of Eagle; George A. Gates, Donald H. Welch, and

Richard L. Gustafson, in their official capacities as indi-

vidual members of said Board; The Board of County

Commissioners of the County of Eagle, in its capacity as

the permitting authority under Section 24-65.1-101 et seq.,

C.R.S.; The Eagle County Planning Commission; Charles

Ridgway, David Slemon, Dennis Gelvin, and Donald

164a

Price, in their official capacities as individual members of

said Commission; and The County of Eagle, hereinafter

collectively referred to as “Eagle County” or “Defen-

dants”, and the Response and Reply thereto, along with

the pleadings and exhibits appended to these documents,

AND BEING fully advised in the premises, enters the

following findings and Order:

1. Defendants move the Court to dismiss Plaintiffs’

(the Cities’) Sixth, Twelfth and Thirteenth claims for relief

wherein Plaintiffs, municipal corporations of the State of

Colorado, allege that they have been denied due process

by Eagle County in contravention of the Fifth and Four-

teenth amendments of the United States Constitution.

Eagle County argues the following:

a. Plaintiffs lack standing to assert their Sixth and

Twelfth clams [sic] for relief because municipalities are

not afforded due process protection under the United

States Constitution; and

b. Plaintiffs lack standing to assert their Thirteenth

claim for relief because municipalities are not afforded

statutory protection under 42 U.S.C. 1983.

2. Plaintiffs respond arguing that:

a. Plaintiffs have standing to assert their Sixth and

Twelfth claims as home rule municipalities in their capac-

ity as owners of certain decreed conditional water rights;

b. The “per se” exclusionary rule on standing, as

developed by the federal courts, should not apply, and

does not apply to Colorado home rule municipalities;

165a

c. Colorado courts have found standing to exist

under the United States and Colorado Constitutions

when considering procedural due process issues;

d. Plaintiffs have standing in their proprietary

capacity;

e. There exists a basis for Plaintiffs’ Sixth Claim

outside of the Federal and State Constitutions; and

f. Plaintiffs have standing to assert their Thirteenth

Claim under 42 USC 1983.

3. Defendants reply they are not moving to dismiss

all of Plaintiffs’ claims, and agree the Cities have standing

to bring their action under Rule 106(a)(4) or Rule 57.

Defendants argue the Colorado Supreme Court's recent

decision in Orchard City v. Delta County Commissioners,

751 P.2d 1003 (Colo. 1988) is dispositive of the issues

raised, and the governmental/proprietary distinction has

never been recognized in the context of Fourteenth

Amendment rights. See City of Trenton v. State of New

Jersey, 262 U.S. 182 (1923).

4. Plaintiffs’ Sixth, Twelfth and Thirteenth Claims

for Relief are summarized as follows:

a. Sixth Claim - Seeks a declaratory judgment that

the regulations adopted by the Board of County Commis-

sioners are legally insufficient and vague as to deny

Plaintiffs due process under the Fifth and Fourteenth

Amendments of the U.S. Constitution and Article II, Sec-

tion 25 of the Colorado Constitution;

b. Twelfth Claim - Seeks a declaratory judgment

that the findings and conclusions as set forth in the

Board’s Resolution No. 88-15 are without factual support

166a

in the record; that Plaintiffs were not afforded the right of

cross examination and rebuttal as to all evidence consid-

ered by the Board; that the Board was impermissibly

biased against Plaintiffs and the project; and that the

Board applied an unduly oppressive criteria to the per-

mitting of the project, all of which denied Plaintiffs due

process in the hearing process; and

c. Thirteenth Claim - Seeks an injunction due to

Defendants’ arbitrary denial of Plaintiffs application

enjoining Defendants from depriving Plaintiffs of their

constitutionally protected property rights of developing

their water rights pursuant to 42 USC 1983.

5. The Court finds that the Plaintiffs, City of Colo-

rado Springs and City of Aurora, are municipal corpora-

tions and, as such, are not citizens within the meaning of

the Fourteenth Amendment. As the State Supreme Court

held in Orchard City v. Delia County Commissioners, 751

P.2d 1003, 1006 (Colo. 1988), “being but creatures of the

State, municipal corporations have no standing . . . to

invoke the provisions of the Fourteenth Amendment of

the Constitution in opposition to the will of their cre-

ator. .. . [T]he Fourteenth Amendment simply does not

prescribe guidelines and impose restrictions upon one

political subdivision vis-a-vis another political subdivi-

sion.” Orchard City, at 1006, fn.3; South Macomb Disposal v.

Township of Washington, 790 F.2d 500, 503 (6th Cir. 1986).

6. The Cities therefore have no standing to assert

purported constitutionally protected property rights in a

42 USC 1983 claim.

7. The Court further finds a political subdivision of

a state cannot challenge the constitutionality of another

167a

political subdivision’s ordinance on due process grounds.

The Fourteenth Amendment does not prescribe guide-

lines or impose restrictions upon one political subdivi-

sion of a state vis-a-vis another political subdivision of

the state; and the relationship between the entities is a

matter of state concern. The Fourteenth Amendment pro-

tections and limitations do not apply in this instance

either. South Macomb, supra., at 505.

8. The Court therefore grants Defendants’ Motion in

part and properly dismisses Plaintiffs’ Sixth and Thir-

teenth Claims for Relief but denies Defendants’ Motion as

to the Twelfth Claim.

DONE AND SIGNED this 22nd day of July, 1988.

BY THE COURT:

/s/ Wm L Jones

Wm. L. Jones, Chief Judge

District Court

168a

APPENDIX H

DISTRICT COURT, COUNTY OF EAGLE, STATE OF

COLORADO

Civil Action No. 88 CV 142

ORDER

CITY OF COLORADO SPRINGS and CITY OF AURORA,

Colorado Municipal Corporations,

Plaintiffs, |

VS.

1. THE BOARD OF COUNTY COMMISSIONERS OF

THE COUNTY OF EAGLE, STATE OF COLORADO;

2. GEORGE A. GATES, DONALD H. WELCH, RICH-

ARD L. GUSTAFSON, in their official capacities as |

individual members of said Board;

3. THE BOARD OF COUNTY COMMISSIONERS OF

THE COUNTY OF EAGLE, STATE OF COLORADO,

in its capacity as the permitting authority under

Section 24-65.1-101, et seqg., C.R.S.;

THE EAGLE COUNTY PLANNING COMMISSION;

CHARLES RIDGWAY, DAVID SLEMON, DENNIS

GELVIN, DONALD PRICE, in their official capacities

as individual members of said Commission;

THE COUNTY OF EAGLE, STATE OF COLORADO;

AVON METROPOLITAN DISTRICT;

TOWN OF AVON, COLORADO;

COLORADO COUNCIL OF TROUT UNLIMITED;

0. COLORADO RIVER OUTFITTERS ASSOCIATION;

>

wer

169a

11. DIVISION OF WILDLIFE, STATE OF COLORADO;

12. EAGLE COUNTY SHERIFF, in his official capacity;

13. HOLY CROSS WILDERNESS DEFENSE FUND;

14. JAMES FRANKLIN LAMONT;

15. RED CLIFF WATER AND SANITATION DISTRICT;

16. TOWN OF EAGLE, COLORADO;

17. TOWN OF GYPSUM, COLORADO’

18. TOWN OF MINTURN, COLORADO;

19. TOWN OF RED CLIFF, COLORADO;

20. TOWN OF VAIL, COLORADO;

21. UPPER EAGLE REGIONAL WATER AUTHORITY;

22. UPPER EAGLE VALLEY SANITATION DISTRICT;

23. VAIL VALLEY CONSOLIDATED WATER DISTRICT;

24. VAIL ASSOCIATES, INC.; and

25. EAGLE COUNTY HISTORICAL SOCIETY,

Defendants.

THE COURT, having considered the Plaintiffs Motion

to Amend Complaint, the Response and Reply thereto,

along with the pleadings and exhibits appended thereto,

AND BEING fully advised in the premises, enters the

following findings and Order:

1. Plaintiffs (Cities) move the Court for leave to

amend their Complaint filed March 18, 1988, such amend-

ment proposing the addition of a Fourteenth and Fif-

teenth Claim for Relief.

170a

2. The Fourteenth Claim is a demand for repayment

to Plaintiffs of an application “fee” which Plaintiffs’

allegedly paid to Eagle County in the amount of

$191,478.44 under protest. Plaintiffs claim the application

“fee” assessed pursuant to Eagle County Land Use Regu-

lation Section 6.01.23 and C.R.S. 24-65.1-501(1)(a)

includes amounts not contemplated by C.R.S.

24-65.1-501(1)(a) and was not set within the required ten

days of the County’s receipt of Plaintiffs’ application to

develop water rights it owns within the county. Plaintiffs

further claim in their motion to amend that the County

was given notice on March 16, 1988 by Plaintiffs that the

payment was made under protest, it was improperly

assessed and they demanded return with interest. Plain-

tiffs also claim no response has been received from the

County regarding their demand.

3. The Eagle County Defendants (captioned above

as Defendants 1. through 6.) respond that the proposed

Fourteenth Claim seeking declaratory relief is an entirely

new Ciaim and is untimely even if it seeks a declaratory

judgment since it was not brought within the 30 day

limitation contained in Rule 106(b). Citing Greyhound Rac-

ing Association v. Colorado Racing Commission, 589 P.2d 70

(Colo. App. 1978).

4. The Court notes the Eagle County Defendants

argument that failure to appeal within the applicable 30

day time limit is a jurisdictional defect, and that a Plain-

tiff cannot circumvent these time limitations by attempt-

ing to obtain declaratory relief. See Trinen v. City and

County of Denver, 725 P.2d 65 (Colo.App. 1986); Snyder v.

City of Lakewood, 542 P.2d 371, 376 (Colo. 1975); and

17la

Greyhound Racing Association of Southern Colorado, Inc. v.

Colorado Racing Commission, 589 P.2d 70 (Colo.App. 1978).

5. However, the Court finds when a petition for

review under Rule 106(a)(4) is timely filed, the Court of

Appeals has followed a different line of cases than Trinen,

Greyhound and Snyder. When a petition for review is

timely filed under the rule, public policy requires the

joinder of all claims for relief in one action. See Powers v.

Board of County Commissioners, 651 P.2d 463, 464

(Colo.App. 1982), distinguishing Snyder; Norby v. City of

Boulder, 577 P.2d 277 (1978); and Wilson v. Town of Avon,

749 P.2d 990, 992 (Colo.App. 1987). And a trial court

errors by deyning [sic] leave to amend a Rule 106(a)(4)

petition adding a claim for declaratory relief on a money

demand issue which was not heard nor within the juris-

diction of the inferior tribunal. See Wilson, supra. at 992.

6. The Court thus grants Plaintiffs’ Motion to

Amend adding the Fourteenth Claim for Relief.

7. The Court next addresses the Plaintiffs proposed

Fifteenth Claim. The Court finds the Cities proposed

Fifteenth Claim alleges the deprivation of a constitu-

tionally protected property interest of the Cities and

seeks just compensation which is similar to the issues

presently before the Court in the Eagle County Defen-

dants’ Motion to Dismiss Plaintiffs Sixth, Twelfth and

Thirteenth Claims for Relief. The Court concludes, as it

has on even date herewith in its Order dismissing Plain-

tiffs originally filed Six and Thirteenth claims, that

municipal corporations are creatures of the State and

172a

have no standing to invoke the protections of the Four-

teenth or Fifth Amendments to the Constitution in oppo-

sition to the will of their creator. In other words, the

Fourteenth and Fifth Amendments simply do not pre-

scribe guidelires and impose restrictions upon one politi-

cal subdivision vis-a-vis another political subdivision.

Orchard City v. Delta County Commissioners, 751 P.2d 1003,

1006 (Colo. 1988); Village of Arlington Heights v. Regional

Transportation Authority, 653 F.2d 1149 (1981); and See

Generally, 16A Am.Jur.2d Constitutional Law, Section 744.

8. The Court thus denies Plaintiffs’ Motion to

Amend which proposes the addition of Plaintiffs’ Fif-

teenth Claim because the Court has found that municipal

corporations have no standing to bring constitutional

claims against the state or another of the state’s political

subdivisions. Arlington, supra. at 1153.

DONE AND SIGNED this 22nd day of July, 1988.

BY THE COURT:

/s/ Wm L Jones

Wm. L. Jones, Chief Judge

District Court

173a

APPENDIX I

DISTRICT COURT, EAGLE COUNTY, COLORADO

Case No. 88 CV 142

ORDER REMANDING PERMIT APPLICATION CONSID-

ERATION TO THE BOARD OF COUNTY COMMISSION-

ERS

CITY OF COLORADO SPRINGS AND CITY OF

AURORA,

Colorado municipal corporations,

Plaintiffs,

Vv.

THE BOARD OF COUNTY COMMISSIONERS OF THE

COUNTY OF EAGLE, STATE OF COLORADO; et al.

Defendants.

THIS MATTER comes before the Court on cross

motions for Summary Judgment in this Rule 106 action.

The Court has reviewed the motions, responses, replies

and exhibits, and being fully advised, makes the follow-

ing findings of fact:

Factual Background

The Cities of Colorado Springs and Aurora (“Cities”)

are owners of decreed water rights in Eagle County.

Cities are home-rule municipalities with charter provi-

sions allowing extra-territorial construction, mainte-

nance, and operation of waterworks. A portion of such

water rights were developed through Phase I of the

174a

Homestake Project, completed in 1966. Phase I of the

Homestake Project was designed to accommodate addi-

tional flows to be developed at a later date.

The diversion sites for Phase II of the Homestake

Project (“Project”) are located entirely on United States

Forest Service lands. These lands were designated by

Congress in 1980 as the Holy Cross Wilderness. At the

time of the designation as a wilderness, the Cities

received a comprehensive statutory exemption allowing

for the development of their previously existing water

rights.

In the course of developing the Project, the Cities

proceeded through a review process under the National

Environmental Policy Act (“NEPA”). Eagle County partic-

ipated in the NEPA proceedings. As part of the NEPA

procedures, an Environmental Impact Statement (“EIS”)

was prepared.

The Cities 2!sc sought a land use permit from the

U.S. Forest Service under the provisions of the Federal

Land Policy Management Act (“FLPMA”). The FLPMA

permit was granted with conditions addressing environ-

mental and land use concerns.

The Cities were also granted a section 404 permit

from the Army Corps of Engineers pursuant to the fed-

eral Clean Water Act. The 404 permit for dredge and iil

activities contained conditions to mitigate environmental

damage.

On May 20, 1985, the Cities applied to the Eagle

County Board of County Commissioners (“Board”) for

approval of the Project as a major extension of an existing

175a

water project, efficient utilization of an existing water

systems, location approval pursuant to CRS 30-28-110,

and a Certificate of Designation pursuant to 30-20-101 et

seq. (“Application”).

The Application was reviewed for completeness by

the Eagle County Planning Department. On July 23, 1985,

the Planning Department found the Application incom-

plete. The Cities resubmitted the Application with sup-

plemental materials on January 2, 1986. The Planning

Department found the Application complete on March 11,

1987, pending receipt of additional information, subse-

quently provided.

Public hearings were held on the Application on.

April 20-April 24, 1987, May 14-May 16, 1987, May 18-

May 20, 1987 and September 9, 1987.

The Eagle County Planning Commission, in Resolu-

tion No. 88-15, recommended approval of the Application

subject to compliance with certain conditions. The Cities

stipulated that they did not want the Board of County

Commissioners to consider any alternatives, except that

presented in the Application. On February 22, 1988, the

Eagle County Board of County Commissioners unani-

mously voted to deny the Cities’ Application.

Procedural Background

A complaint was filed in this action by the Cities on

March 18, 1988. The original complaint contained twelve

claims for relief; an amended complaint filed June 22,

1988 asserted two additional claims.

176a

By Order dated July 22, 1988, the Court, pursuant to

defendant County of Eagle (“County”) motion, dismissed

plaintiffs’ Sixth and Thirteenth Claims and disallowed

the amendment adding the Fourteenth Claim. Conse-

quently, there are eleven remaining claims in this action.

The following original defendants have been dis-

missed from this action: Colorado Council of Trout

Unlimited; Division of Wildlife, State of Colorado; James

Franklin Lamont; Town of Vail, Colorado; Upper Eagle

Regional Water Authority; Upper Eagle Valley Sanitation

District; and Vail Associates, Inc.

The following original defendants have filed a Dis-

claimer in this action: Town of Minturn, Colorado; and

Eagle County Historical Society.

The following original defendants have indicated, by

letters to the Court, that they do not wish to participate in

this action: Red Cliff Water and Sanitation District; and

Town of Red Cliff, Colorado.

The following original defendants have filed no

answer to the complaint; Colorado River Outfitters Asso-

ciation; Eagle County Sheriff, in his official capacity; and

the Town of Gypsum, Colorado.

The remaining claims are as follows:

First Claim: Sections 24-65.1-101 et seq. are uncon-

stitutional insofar as they attempt to vest counties with

authority to regulate or deny construction of waterworks

by home rule municipalities.

177a

Second Claim: Construction of the Project is a local,

municipal concern and the Charters of the Cities super-

sede the statutes and regulations relied upon by the

Board in denying their permits.

Third Claim: CRS Sec. 24-65, 1-101 et seq. constitutes

an unlawful delegation of authority over municipal

waterworks to county commissions.

Fourth Claim: The provisions of CRS Sec. 24-65.1-101

et seq. and CRS 30-20-103 are each void as an impermissi-

ble delegation of authority of matters of state-wide con-

cern to local governments.

Fifth Claim: Plaintiffs are acting as a public utility,

and as such are exempt from the provisions of Sec.

24-65.1-101 et seq.

Sixth Claim: Dismissed.

Seventh Claim: Plaintiffs are acting as a public utility

in the construction of the project under CRS 30-28-110

and the provisions of that statute supersede any regula-

tory authority over the Project bestowed upon Eagle

County by CRS Sec. 24-65.1-101 et seq.

Eighth Claim: The Board has exceeded its jurisdiction

in attempting to regulate the Project.

Ninth Claim: The Board acted in an arbitrary and

capricious fashion and abused its discretion by specific

actions in denying the Permits.

Tenth Claim: The Board acted in an arbitrary and

capricious fashion and abused its discretion by denying

plaintiffs’ permits in the face of a complete and accurate

178a

Application, supplemented with hearing testimony and

exhibits, which all met lawful criteria.

Eleventh Claim: By virtue of its attempt to regulate

the Project and deny permits, the Board has acted outside

the scope of its jurisdiction and in violation of the provi-

sions of CRS 31-35-402(1).

Twelfth Claim: Plaintiffs have been denied due pro-

cess under the United States and Colorado Constitutions

by specific acts of the Board.

CONCLUSIONS OF LAW

The Court makes the following Conclusions of Law:

Issues raised in plaintiff’s first, second, third, fourth,

fifth and seventh claims have been addressed by the

Colorado Supreme Court in City and County of Denver v.

Board of County Commissioners of Grand County. 782 P.2d

753_(Colo. 1989) (“Grand County”). In Grand County, a

municipality brought an action seeking a declaration that

it need not obtain permits from Grand and Eagle Coun-

ties to construct and operate water collection and diver-

sion facilities in Grand and Eagle Counties. In affirming

summary judgments entered in favor of the Counties, the

Supreme Court discussed the following issues, which

effectively dispose of many of plaintiffs’ claims:

Plaintiffs’ First Claim

Plaintiffs’ first claim contends that certain provisions

of CRS 24-65-101 et seg. (“Land Use Act”) constitute

unconstitutional regulation of the powers of a home rule

municipality. The court in Grand County held the Land

179a

Use Act does not infringe on the exercise of a home-rule

municipalities powers in violation of Article XX of the

Colorado constitution, 782 P.2d at 761, 762.

Therefore, the Court concludes that plaintiff’s first claim

for relief is without merit as a matter of law.

Plaintiffs’ Second Claim

Plaintiffs’ second claim contends that construction of

the Homestake II Project (“Project”) is a local, municipal

concern of the City of Colorado Springs and the City of

Aurora under the state constitution, which supersedes

conflicting state law. Article XX, Section 6 of the Colorado

Constitution provides, in part,:

The people of each city or town of this state,

having a population of two thousand .. . are

hereby vested with, and they shall always have,

power to make, amend, add to or replace the

charter of said city or town, which shall be its

organic law and extend to all its local and

municipal matters.

Such charter and the ordinances made pursuant

thereto in such matters shall supersede within

the territorial limits and other jurisdiction of the

city or town any law of the state in conflict

therewith.

Construction of a municipal water project outside the

territorial limits of the municipality is a matter of mixed

state and local concern. Grand County at 763. The Court

concludes that the Homestake II Project is a municipal

water project to be constructed outside the territorial

limits of the plaintiff municipalities. The powers of a

180a

home-rule municipality in constructing an extra-terri-

torial water project do not supersede applicable state law.

Id. Consequently, the Court concludes that plaintiffs’ sec-

ond claim is without legal merit.

Plaintiffs’ Third Claim

Plaintiff’s third claim contends that the Land Use Act

constitutes an unlawful delegation of authority over

municipal matters to counties. The grant of power con-

cerning regulation of activities of state interest in the

Land Use Act does not unconstitutionally delegate legis-

lative authority to local governments. Grand County at

760. The Court has previously concluded that the Home-

stake II Project is an activity of mixed state and local

concern. Therefore, the Court concludes that plaintiffs’

third claim is legally without merit.

Plaintiffs’ Fourth Claim

Plaintiffs’ fourth claim contends that CRS 24-65.1-101

of the Land Use Act and CRS 30-20-103, which requires a

county permit for a solid waste disposal project, repre-

sent an unconstitutional delegation of matters of state-

wide concern to local entities. In matters of statewide

concern, enactments of the General Assembly take prece-

dence over enactments of home-rule cities. Grand County

at 762. The legislature, acting in the interest of the state,

has developed a detailed statutory scheme in areas and

activities of state interest which has been held to apply to

the construction of extra-territorial municipal water pro-

jects. As such, the Land Use Act prescribes the procedure

by which construction of municipal water projects located

18la

outside of the territorial limits of the municipality are

regulated. The procedures established in the Land Use

Act prevent uncontrolled exercises of discretionary

power by local governments. Grand County at 760. There-

fore, the Court concludes that the Land Use Act does not

result in an unconstitutional delegation of the state’s

powers to the counties.

CRS 30-20-103 provides, in pertinent part,:

Any person desiring to operate a solid wastes

disposal site and facility within the unincorpo-

rated portion of any county shall make applica-

tion to the board of county commissioners of the

county in which such site or facility is or is

proposed to be located for a certificate of desig-

nation. ...

The statute further provides that approval will be

based on criteria established by the state board of health,

the water quality control commission and air quality

control commission. Other sections of the Solid Wastes

Act provide detailed procedures and criteria for the

board to use in determining whether to grant a permit.

The Solid wastes Act delegation procedures do not vio-

late the Colorado constitution. City and County of Denver

v. Eggert, 647 P.2d 216, 226-227 (Colo. 1982).

Therefore, the Court concludes that neither the Land

Use Act nor the Solid Wastes Act constitute an uncon-

stitutional delegation of matters of statewide concern to

local entities. Hence, plaintiffs’ fourth claim is without

legal merit.

182a

Plaintiffs’ Fifth Claim

Plaintiffs’ fifth claim contends that activities of Public

Utilities are exempt from county regulation under the

Land Use Act, specifically CRS 24-65.1-105. The relevant

portions of 24-65.1-105 provide:

(1) With regard to public utilities, nothing in

this article shall be construed as enhancing or

diminishing the rights or the power and author-

ity of municipalities, counties, or the public util-

ities commission . . .

(2) Nothing in this article shall be construed as

enhancing or diminishing the rights and pro-

cedures with respect to the power of a public

utility to acquire property and rights-of-way by

eminent domain to serve public need in the

most economical and expedient manner.

Extraterritorial water services of a municipality are

exempt from regulation of the rates, fees, tolls or charges

for such services. Board of County Commissioners v. Denver

Board of Water Commissioners, 718 P.2d 235, 245 (Colo.

1986) (“Tri Counties”). However, the court in Grand

County expressly stated that Tri Counties did not hold that

a municipality’s construction and operation of water pro-

jects enjoyed a general immunity from regulation. Grand

County at 764. Rather, the Grand County court held that

municipalities were subject to the regulation contem-

plated in the Land Use Act. Id. Therefore, the court con-

cludes that plaintiffs’ fifth claim must fail as a matter of

law.

183a

Plaintiffs’ Seventh Claim

Plaintiffs’ seventh claim contends that CRS

30-28-110(1)(c) supersedes Eagle County’s authority

under the Land Use Act. CRS 30-28-110 provides, in part,:

(1)(a) Whenever any county planning commis-

sion has adopted a master plan of the county or

any part thereof, no road, park or any public

way, ground or space, . . . shall be constructed

or authorized in the unincorporated territory of

the county until or unless the proposed location

and extent thereof has been submitted to and

approved by such county or regional planning

commission.

* * +

(c) If the public way, ground, space, build-

ing, structure or utility is one the authorization

or financing of which does not, under the law

governing the same, fall within the province of

the board of county commissioners or the

county officials or board, the submission to the

commission shall be by the body or official hav-

ing such jurisdiction, and the commission’s dis-

approval may be overruled by said body by a

vote of not less than a majority of its entire

membership or by said official... .

Section 30-28-110 and the Land Use Act are not

facially inconsistent. Grand County at 766. Any arguable

power granted to a home-rule city in subsection

30-28-110(1)(c) to overrule planning commission disap-

proval of a project does not give the city unrestricted

authority to ignore regulations adopted pursuant to the

Land Use Act. Grand County at 766. Therefore, the Court

concludes that 30-28-110 does not supersede the Land

184a

Use Act. Consequently, plaintiffs’ seventh claim is with-

out legal merit.

Federal Preemption

Many of the criteria upon which the Board based its

denials of permits for the Homestake II Project are not

areas the County Commissioners have authority to regu-

late. The Proposed project is located entirely on federal

Forest Service land. Generally, comprehensive federal

laws preclude a county or state from prohibiting a speci- .

fic land use on federal land. Brubaker v. Board of County

Commissioners, El Paso County, 652 P.2d 1050 (Colo. 1982).

However, a state or county may regulate local environ-

mental conditions on federal lands. Granite Rock Company

v. California Coastal Commission, 480 U.S. 677 (1987).

The Court concludes that federal law preempts any

authority under which the county could arguably regu-

late land use on federal forest service land. Generally,

where congressional legislation either explicitly or

implicitly reflects an intent to occupy an entire field, state

legislation dealing with the same area is precluded. Bru-

baker at 1055. The scheme of federal regulation may be so

pervasive as to make reasonable the inference that Con-

gress left no room for the states to supplement it. Id.,

citing Rice v. Santa Fe Elevator Co., 331 U.S. 218, 230 (1947).

Section 1712(f) of the Federal Land Policy and Man-

agement Act (“FLPMA”) provides:

(f) The Secretary [of Interior] shall allow an

opportunity for public involvement and by reg-

ulation shall establish procedures, including

185a

public hearings where appropriate, to give Fed-

eral, State, and local governments and the pub-

lic, adequate notice and opportunity to

comment upon and participate in the formula-

tion of plans and programs relating to the man-

agement of public Jands.

43 U.S.C. Sec. 1712.

Section 1604(d) of the National Forest Management

Act (“NFMA”) provides:

The Secretary [of Agriculture] shall prov.de for

public participation in the development, review,

and revision of land management plans includ-

ing, but not limited to, making the plans or

revisions available to the public at convenient

locations in the vicinity of the affected unit for a

period of at least three months before final

adoption, during which period the Secretary

shall publicize and hold public meetings or

comparable processes at locations that foster

public participation in the review of such plans

or revisions.

16 U.S.C. Sec. 1604.

The Court concludes that requiring the federal man-

aging agencies to allow a party to participate in formulat-

ing plans for the management of federal public lands

implies that the same party may not separately regulate

the same activities on the same public lands. Therefore,

the combined scheme of federal regulation provided for

in FLPMA and NFMA occupies the field of land use

planning on National Forest lands. Here, the County

participated in public hearings on the Project which were

held pursuant to FLPMA and NFMA. Therefore, County

186a

regulation of the land use aspects of the Project is pre-

empted by federal law.

The Court has previously found that the Cities stipu-

lated that they did not wish the Board to consider alterna-

tives to the submitted Application. Therefore, the Board

did not determine that a permit for the Project would be

denied under any circumstances. Consequently, the ques-

tion of whether the Board has authority to deny the

Permits categorically is not before the Court. However,

the preemption doctrine has been held to preclude zoning

officials from denying a special use permit for drilling on

federal land, notwithstanding the proposed activities

were inconsistent with the county’s long range land use

planning. Brubaker, 652 P.2d at 1053.

Here, the Board based its permit denials, in part, on

land use planning criteria. As a result, the Court con-

cludes that any of the findings of fact relied upon by the

Board in denying the permits which relate to land use

were improper (Findings I5, I(10), 1(19), 1(14), I1(15),

III(A)(1), TI(A)(2), 11(B)(1), M1(B)(2), TV(1) and IV(2)).

State Preemption

In addition, state law preempts county regulation in

some areas of environmental concern. Water quality and

water rights are two areas in which the state has stat-

utorily determined it is the final authority. Water quality

is exclusively regulated by the Water Quality Control

Commission through the Water Quality Control Division.

CRS Sec. 25-8-102(4) (“This article and the agencies

authorized under this article shall be the final authority

on the administration of water pollution prevention,

187a

abatement and control.”). Plaintiff Cities have obtained

the necessary permits and approvals by the Water Quality

Control Commission. Therefore, the Board may not deny

plaintiffs’ permits based on concerns about water quality

(Findings 1(4), 1(5), 1(8), 1(9), 1(11), M(6) and II(7)).

Regulation of water rights is within the exclusive

jurisdiction of the State Engineer. CRS Sec. 37-92-301(1);

State ex rel Danielson v. Vickroy, 627 P.2d 752 (1981). Mini-

mum in-stream flows and diversion conditions have been

set by the State Engineer for the Homestake II Project.

Therefore, the Court concludes that findings of fact relied

on by the Board in denying plaintiffs’ permits which

concerned water quantity, including impacts on rafting

businesses, were improper (Findings I(4), 1(5), 1(6), I(7),

I1(4) and II(5)).

Permit for a Major Extension of an Existing

Water Collection System

In reviewing the Board’s findings of fact, the only

criteria on which the Board could properly rely in deny-

ing Cities’ Permit for a Major Extension of an Existing

Water Collection System (Part I of the Board Resolution)

were those relating to wetlands, aquatic habitat, and pos-

sibly the nuisance factors which may effect the environ-

ment of Eagle County. Since this results in only six of the

twenty findings of fact being relevant to permit denial, it

is not possible to determine with any certainty what the

result of the Board’s decision would have been in absence

of consideration of the majority of the findings.

188a

Permit for Efficient Utilization of a

State Water Project

The second permit denied by the Board was for Effi-

cient Utilization of a State Water Project (Part II of the

Board’s Resolution). Again, the Board is precluded from

basing its denial on land use considerations when the

project is to be located entirely on federal lands. There-

fore, the Court concludes that the findings based on

environmental damage to wetlands and aquatic habitats

are the only findings on which the Board could properly

base its permitting decision. In absence of the findings

relied on by the Board in denying the Cities’ second

permit which were not areas allowed to be regulated by

the County, it is not possible to determine what the

outcome of the permit decision would be.

Special Use Permit

Section III of the Board’s Resolution was a denial of a

Special Use Permit. As stated above, the County does not

have the authority to deny a land use on federal land

which has been approved by the federal agencies with

responsibility for regulating the federal land in question.

Of the findings relief on by the Board in denying plain-

tiffs Special Use Permit, all but two are related to land

use planning. Finding III(A)(3) states that “The Project

may adversely effect fish, wildlife or migratory ranges.”

Finding III(A)(4) states that “Evidence presented at the

hearing failed to demonstrate that the adverse effect on

fish, wildlife or migratory ranges can be adequately miti-

gated.” The Board may regulate activities which cause

environmental impacts, but not completely prohibit a

189a

federally approved land use. Therefore, the Court con-

cludes that it cannot determine what the Board’s decision

would be in absence of reliance on the irrelevant findings

of fact.

Certificate of Designation

CRS Sec. 30-20-104 lists the factors to be considered

in reviewing an application for a certificate to operate a

solids wastes disposal site. CRS 30-20-104 provides, in

part,:

(1) In considering an application for a certifi-

cate of designation, the board of county com-

missioners shall take into account:

(a) The effect that the solid wastes dis-

posal site and facility will have on the surround-

ing property, taking into consideration the types

of processing to be used, surrounding property

uses and values, and wind and climatic condi-

tions;

(b) The convenience and accessibility of

the solid wastes disposal site and facility to

potential users;

(c) The ability of the applicant to comply

with the health standards and operating pro-

cedures provided for in this part 1 and such

rules and regulations as may be prescribed by

the department;

(d) Recommendations by local health

departments.

Apparently, the Board denied the permit due to con-

sideration of subsection (1)(a), concerning the effect the

site would have on surrounding property. The Board had

190a

earlier found that the “neighborhood” to be considered

included the land surrounding the federal forest land.

The Court concludes that federal agencies administering

such lands are the proper authority to determine land

uses within the national forest.

Two of the findings of the Board would arguably

justify denial of the Certificate of Designation. Unfor-

tunately, these findings, that the Project did not conform

with the Eagle County Master Plan and was not compati-

ble with surrounding property, are not areas in which the

County has any authority to regulate. Therefore, the

Court concludes these findings are irrelevant.

Consequently, the Court concludes that the Board, in

finding all other considerations mitigated in favor of

approval of the Certificate of Designation, and having no

authority to dictate land use planning on federal lands,

effectively approved the Certificate of Designation.

The Court notes that due process violations and

abuse of discretion claims have been made concerning the

permitting process. The Court concludes that no due

process violations occurred. However, the Court does not

reach the abuse of discretion claim, finding that the

Board’s decision was insufficient as a matter of law.

The Court defers ruling on the claim that the permit

fee was illegal until the Board has reconsidered its permit

decisions.

THEREFORE, THE COURT ORDERS:

Plaintiff’s First, Second, Third, Fourth, Fifth and Sev-

enth Claims are dismissed.

RO ee Oa eye Te

Le ee ee ee ee ee ee ae ey

ee te ee

oo

191a

The applications for a Permit for A Major Extension

of a Water Project, Permit for Efficient Utilization of

Municipal Water Project and the Special Use Permit are

hereby remanded to the Eagle County Board of Commis-

sioners for reconsideration in conformance with this

Order. The Court defers ruling on the propriety of the

Permit fees charged until after the Board’s reconsidera-

tion, at which time an evidentiary hearing will be held,

on that issue only.

DONE THIS 2nd DAY OF JULY, 1991.

BY THE COURT:

/s/ Wm. Jones

DISTRICT JUDGE

192a

APPENDIX J

DISTRICT COURT, EAGLE COUNTY, COLORADO

Case No. 88 CV 142

ORDER SETTING ASIDE DECISION OF COUNTY COM-

MISSIONERS

CITY OF COLORADO SPRINGS AND CITY OF

AURORA, Colorado municipal corporations,

Plaintiffs,

vs.

1._THE BOARD OF COUNTY COMMISSIONERS OF

THE COUNTY OF EAGLE, STATE OF COLORADO;

2. GEORGE A. GATES, DONALD H. WELCH, RICH-

ARD L. GUSTAFSON, in their official capacities as indi-

vidual members of said Board;

3. THE BOARD OF COUNTY COMMISSIONERS OF

THE COUNTY OF EAGLE, STATE OF COLORADO, in its

capacity as the permitting authority under Sec.

24-65.1-101, et seq., C.R.S.

4. THE EAGLE COUNTY PLANNING COMMISSION;

5. CHARLES RIDGWAY, DAVID SLEMON, DENNIS

GELVIN, DONALD PRICE, in their official capacities as

individual members of said Commission;

6. THE COUNTY OF EAGLE, STATE OF COLORADO;

7. AVON METROPOLITAN DISTRICT;

8. TOWN OF AVON, COLORADO;

10. COLORADO RIVER OUTFITTERS ASSOCIATION;

12. EAGLE COUNTY SHERIFF, in his official capacity;

13. HOLY CROSS WILDERNESS DEFENSE FUND;

15. RED CLIFF WATER AND SANITATION DISTRICT;

16. TOWN OF EAGLE, COLORADO;

17. TOWN OF GYPSUM, COLORADO;

193a

18. TOWN OF MINTURN, COLORADO;

19. TOWN OF REDCLIFF, COLORADO;

23. VAIL VALLEY CONSOLIDATED WATER DISTRICT;

25. EAGLE COUNTY HISTORICAL SOCIETY,

Defendants.

THIS MATTER comes before the Court on appeal

from a decision by defendant Board of County Commis-

sioners of Eagle County (“Board”). The Court has re-read

the cross motions for Summary Judgment, Responses and

Replies and Responses and Replies to the Decision on

Remand. The Court has reviewed Board Resolution

91-104, the transcript of the hearings, and exhibits. Being

fully advised, the Court makes the following Findings of

Fact:

The Cities of Colorado Springs and Aurora (“Cities”)

are owners of decreed water rights in Eagle County. A

portion of such water rights were developed through

Phase I of the Homestake Project, completed in 1966.

Phase I of the Homestake project was designed to accom-

modate additional flows to be developed at a later date.

The Cities now seek to develop Phase II of the project.

The diversion sites for Phase II are located entirely

on United States Forest Service lands. These lands were

designated by Congress in 1980 as the Holy Cross Wilder-

ness. At the time of the designation as wilderness, the

Cities received a comprehensive statutory exemption

allowing for the development, of their water rights. The

area in dispute is zoned R, for resource development by

the county.

194a

The Cities have received approval for the project

from the federal agencies which have jurisdiction over its

various aspects, specifically a 404 permit from the Army

Corps of Engineers, and a permit from the U.S. Forest

Service. On May 20, 1986, the Cities applied to Eagle

County for permits for Major Extension of an Existing

Water Project, Efficient Utilization of an Existing Water

System, Approval pursuant to C.R.S. 30-28-110, and a

Certificate of Designation pursuant to C.R.S. 30-20-101.

The Eagle County Planning Commission recom-

mended approval of the Application subject to compli-

ance with certain conditions. One of the 52 conditions

imposed by the Planning Commission requires that any

reductions in sales taxes directly attributable to a

decrease in recreational visitor days caused by the project

be assessed to the Cities and placed in an escrow account.

There is no specific taxing authority over water projects

granted to counties, and Eagle County has not passed a

resolution applicable to this situation.

Public hearings were held, and on February 22, 1988,

the Eagle County Board of County Commissioners unani-

mously denied the Cities’ application for permits. This

action was commenced on March 18, 1988. The following

defendants have filed a Disclaimer in this action: Town of

Minturn, Colorado; and Eagle County Historical Society.

The following defendants have indicated, by letters to the

Court, that they do not wish to participate in this action:

Red Cliff Water and Sanitation District; and the Town of

Red Cliff, Colorado. The following original defendants

have filed no answer to the complaint: Colorado River

Outfitters Association; Eagle County Sheriff, in his offi-

cial capacity; and the Town of Gypsum, Colorado.

195a

At the time this matter was first briefed, there were

eleven remaining claims. By Order dated July 22, 1988,

the Court dismissed plaintiff’s Sixth and Thirteenth

claims. In an order dated July 2, 1991, the Court ordered

plaintiff’s First, Second, Third, Fourth, Fifth and Seventh

Claims dismissed. In the July 2 Order, the Court also

determined that the Board had effectively granted the

Cities’ application for a Certificate of Designation.

In the July 2 Order, the Court determined that the

Board had based its permit denial substantially on factors

over which the county had no jurisdiction. The matter

was remanded to the Board so it could consider whether

the remaining valid factors were sufficient to support

denial of the Cities’ application for the remaining three

permits. On remand, the Board affirmed the denial of the

permits based on the following facts:

1. APPLICATION FOR A PERMIT TO CON-

DUCT A DESIGNATED ACTIVITY OF

STATE INTEREST: A MAJOR EXTENSION

OF AN EXISTING WATER COLLECTION

SYSTEM:

1. The evidence shows that the proposed

development will significantly deteriorate

marshlands or wetlands.

2. The Applicant has failed to show that

the proposed development will not signifi-

cantly deteriorate aquatic habitats.

3. Evidence presented at the hearing failed

to demonstrate that the significant deterio-

ration of the wetlands can be adequately

mitigated.

Il.

196a

13. There may be a negative effect on the

aquatic environment because of increases in

water temperature which cause fish to be

subject to disease.

14. Evidence presented at the hearing

failed to demonstrate that the negative

effect on the aquatic environment can be

adequately mitigated.

15. The proposed development will cause

nuisance factors such as increased traffic,

dust, fire hazards, and dangers from haz-

ardous chemical contamination, explosives

and fuels. The mitigating measures pro-

posed by the Cities fail to adequately satisfy

this criterion.

APPLICATION FOR A PERMIT TO CON-

DUCT THE FOLLOWING DESIGNATED

ACTIVITY OF STATE INTEREST: EFFI-

CIENT UTILIZATION OF A MUNICIPAL

WATER PROJECT:

1. The evidence shows that the proposed

development will significantly deteriorate

marshlands or wetlands.

2. The Applicant has failed to show that

the proposed development will not signifi-

cantly deteriorate aquatic habitats.

3. Evidence presented at the hearing failed

to demonstrate that the significant deterio-

ration of wetlands can be adequately miti-

gated.

8. There may be a negative effect on the

aquatic environment because of increases in

197a

water temperature which cause fish to be

subject to disease.

9. Evidence presented at the hearing failed

to demonstrate that the negative effect on

the aquatic environment can be adequately

mitigated.

Ill. SPECIAL USE PERMIT:

3. The project may adversely affect fish,

wildlife or migratory ranges.

4. Evidence presented at the hearing failed

to demonstrate that the adverse effect on

fish, wildlife or migratory ranges can be

adequately mitigated.

Both the Eagle County Planning Commission and the

Board found that a wetland species shift would constitute

a significant deterioration of wetlands. The Board failed

to indicate what additional mitigation measures, over and

above those tendered by the Cities, were necessary to

mitigate alleged nuisance factors, or why the Cities ten-

dered mitigation was inadequate.

A federal permit granted to the City by the Army

Corps of Engineers states that the Cities have to devise a

plan to “prevent loss of wetlands.” The Corps permit also

states that any mitigation utilized in conjunction with the

Cities’ wetland plan “shall not cause more than minimal

visual intrusion to the wilderness area, and shall not have

significant environmental impacts.”

The only evidence in the record on aquatic habitats is

found in the Base Line Report submitted by the Cities.

There was no evidence presented on aquatic habitats by

198a

any other parties refuting the Cities’ Base Line Report.

Furthermore, there was no testimony on the record that

the project “may adversely affect fish, wildlife or migra-

tory ranges.”

ARGUMENTS

Cities argue that the Board’s actions in denial of the

three applications violated their due process rights, as

evidenced by the Buard’s refusal to take official notice of

the mitigation plans approved by the EPA and U.S. Forest

Service. Furthermore, the Cities argue that the Board’s

decision was arbitrary and capricious and an abuse of

discretion.

On remand, the Cities made a motion to the Board to

submit federal agency documents. The motion requested

that the Board take administrative notice of final federal

decisions which were rendered after the close of the

Board’s administrative record and after the Board’s initial

decision. The Cities argue that they did not wish to

reopen the record to add evidence, but believed that the

Board would want to consider, in its analysis, the content

of the final federal approvals as they regard monitoring

and mitigation of potential environmental impacts.

The federal documents submitted with the motion

identify the federally imposed conditions which must be

met by the Cities in the construction and operation of the

project. The defendants, including Eagle County and

Holy Cross Wilderness Defense Fund (“HCWDF”), par-

ticipated in the federal process which resulted in the final

federal permitting. In addition, a federal suit challenging,

199a

among other things, the federal procedure in promulgat-

ing the federal documents, was dismissed.

The Board denied the motion to take administrative

notice of the documents. The Cities contend that the

federal documents they sought to admit to the record

were for the purpose of establishing the conditions

imposed by the federal agencies relative to monitoring

and mitigation requirements, not for the purpose of

establishing the propriety of the conditions, or the data

upon which they are based.

Conversely, HCWDF contends that the doctrine of

taking official notice is inapplicable. HCWDF distin-

guishes the cases cited by the Cities by stating that these

cases related to taking notice during the original proceed-

ing, not taking notice on remand. Further, HCWDF dis-

putes that efficacy and scientific basis of the “proposals”

for mitigation and states that if the record were to be

reopened, it could put on relevant rebuttal evidence. As

noted above, HCWDF had the opportunity to rebut the

evidence at the federal level. Finally, HCWDF contends

that reopening the record on remand would have violated

HCWDF’s and other parties’ due process rights.

The Cities also seek a determination that the County

did not comply with the Court's order on remand by

failing to examine and rebalance the facts in the record

over which they had jurisdiction, but rather limited the

parties to legal argument regarding whether the criteria

for approval were satisfactorily met.

The Cities additionally argue that the Board does not

have the power to deny a project built by a home-rule

200a

municipality, which is to be built on federal lands and has

received federal approval.

Finally, the Cities have alleged bias on the part of two

commissioners. Specifically, the Cities’ pertinent allega-

tions are: 1) Commissioner Gustafson was present on

behalf of the Western Alliance to Encourage Respon-

sibility (“W.A.T.E.R.”) at a federal environmental assess-

ment meeting urging adoption of a position against the

project; 2) Commissioners Gustafson and Welch are sig-

natories to a petition circulated prior to October 1984

demanding that federal, state and local officials protect

the Holy Cross Wilderness by denying permits for the

project at issue; 3) Gustafson testified before a Congres-

sional subcommittee meeting against the Homestake II

project; 4) Newspaper articles on the campaigns of Welch

and Gustafson show that both ran on platforms of oppo-

sition to the Homestake II project; 5) The denial by the

Board was despite the recommendation for approval by

both the Director of the County Community Develop-

ment Department and the Eagle County Planning Com-

mission.

The County asserts that in the wake of the Court’s

preemption rulings there remained sufficient grounds to

affirm the Board’s previous decision. The Board contends

that its action in denying the Cities’ applications in its

original 1988 decision was not predicated on federal per-

mitting actions, and any subsequent federal actions are of

no effect on the county permitting process.

The Cities have responded by stating that the Board

took administrative notice of an EPA letter from Gene

Reetz to Dave Stark (“EPA letter”), which was not a final

201a

agency decision at an earlier proceeding. The EPA letter

was submitted and admitted after the close of the hear-

ing, but prior to deliberation on the original decision. The

Board had indicated during the original hearings, that it

would take notice of final agency decisions. After the

admission of the EPA letter on November 3, 1987, the

Board did not permit the filing of responsive documents

by the parties, nor did it allow cross examination of the

author.

The Cities also claim that the Board lacked the power

of denial. The Cities contend that, although the laws

pertaining to federal permits require compliance with

applicable state laws, any preempted state or local law is

not an “applicable law.” Furthermore, the holdings in

California Coastal Commission v. Granite Rock, 480 U.S. 572,

107 S.Ct. 1419, 94 L.Ed.2d 577 (1988) and Columbia Basin

Land Protection Assn. v. Schlessinger, 643 F.2d 585 (9th Cir.

1981) support their contention that a county may not

deny a permit to operate a federally approved project on

federal land.

THE COURT makes the following Conclusions of

Law:

The Court adopts the findings and conclusions in the

Court’s previous orders, dismissing plaintiff’s First, Sec-

ond, Third, Fourth, Fifth, Sixth, Seventh and Thirteenth

Claims.

When this Court remanded the decision, it asked that

the Board determine whether it would still deny the

permits if the 14 invalid findings, out of 20 total, were

taken away. This implies a re-evaluation of the facts

202a

supporting the remaining findings. This was not done by

the Board.

DENIAL OF DUE PROCESS RIGHTS

After reviewing the transcripts of the proceedings

before the Board in this matter, and the resolutions result-

ing from the hearings, the Court has no choice but to

conclude that the Board denied the Cities due process.

Specifically, the Board concluded that environmental

impacts either would or “may” occur and the Cities failed

to prove adequate mitigation. However, the Board

refused to take official, or administrative, notice of the

federally approved environmental mitigation plans.

Although the Court is sympathetic to the Board’s

dilemma in “cutting off” what zoula be an endless flow

of evidence, the fact is that the federally approved mitiga-

tion plans were the most relevant evidence on the very

topic on which the permit denials were based.

To meet due process standards, all parties must be

given, among other things, the opportunity to offer evi-

dence in explanation or rebuttal. Nesbit v. Industrial Com-

mission, 607 P.2d 1024, 43 Colo.App. 398 (1979), cert. den.

Here, the Board made its decision based on failure of the

Cities’ mitigation plans, without considering federally

required mitigation, and did not allow the Cities to offer

what is arguably the most competent evidence of mitiga-

tion. The reason given for refusal to take notice of the

federally approved pians was violation of the other par-

ties’ due process rights. However, the Board had earlier

taken notice of a letter written by an EPA employee, not a

final agency decision, to which the Cities were not given

203a

a chance to rebut the conclusions contained therein or

cross-examine the author. The Board cannot admit evi-

dence, deny an opportunity for rebuttal and then close

the door on any evidence from the Cities. Denial of the

Cities’ motion to take official notice of the federal docu-

ments was a violation of due process.

A decision maker is not disqualified on due process

grounds simply for having taken a position, even in

public, on policy issues related to a dispute, if there is no

showing that the decision maker is incapable of judging

particular controversy fairly on the basis of its own cir-

cumstances. Mountain States Tel. and Tel. Co. v. Public

Utilities Com’n of State of Colo., 763 P.2d 1020 (1988). Here,

two of the commissioners took public positions against a

general policy of transmountain diversions of water. In

addition, there is evidence that these commissioners pub-

licly indicated a predetermined outcome on this particu-

lar case. However, it is equally probable that the

commissioners were stating their position on the federal

permit decisions, which they later refused to recognize.

Given the lack of direct evidence of bias, the Court

declines to find the actions of the two commissioners to

be a violation of the Cities’ rights on the basis of bias.

ABUSE OF DISCRETION

Although administrative hearings need not comply

with strict rules of evidence, evidence possessing proba-

tive value commonly accepted by reasonable and prudent

persons in the conduct of their affairs should be admit-

ted. Fueston v. City of Colorado Springs, 713 P.2d 1323

(Colo.App. 1985). The Court concludes that making the

204a

decision to deny the permits, in absence of the most

relevant evidence for the Applicant, was an abuse of

discretion.

ARBITRARY AND CAPRICIOUS

In order for a court to set aside a decision by an

administrative body on the ground that it is arbitrary and

capricious, the court must find that the decision is unsup-

ported by any competent evidence. Board of County Com-

missioners of Jefferson County v. Simmons, 494 P.2d 85, 177

Colo. 347 (Colo. 1972). Here, the Board’s decision was

based on deterioration of aquatic habitats, deterioration

of wetlands, changes to the aquatic environment, and

possible effect on fish, wildlife or migratory ranges, and

the Cities failure to demonstrate adequate mitigation.

However, the only evidence in the record concerning

aquatic habitats is found in evidence supplied by the

Cities. Furthermore, there is no evidence in the record

concerning the effect on fish., wildlife or migratory

ranges. Finally, evidence of federally required mitigation

of the deterioration of wetlands was not allowed in the

record.

The final fact found by the Board concerning nui-

sance factors relates only to the building of the project,

and not to its operation. Although the County argues that

it views the Homestake II project differently than other

development within the county because it will be com-

pleted in a wilderness area, this argument is refuted by

the fact that when the Holy Cross Wilderness was cre-

ated, and exemption allowing the development of the

Cities’ previously decreed water rights was part of the

, iii ie sim a

a oP ale al Ra i in tala 3 hae a ve

205a

wilderness designation. Therefore, the area is not desig-

nated as wilderness by the federal government for pur-

poses of the Homestake II project. Furthermore, the

county zoning designation of the area in question is not a

wilderness designation. Consequently, the argument by

the County that the nuisance factors have a greater

impact due to the wilderness status of the land surround-

ing the project is without merit.

In light of the fact that the Board approves other

projects in the county which create the same nuisance

factors, it is hard to say permit denial based legally only

on this factor is supported by competent evidence. Courts

are not to stand idly by and permit the arbitrary and

unjustified exercise of discretion. Colorado State Bd. of

Nurse Examiners v. Hehu, 268 P.2d 401, 129 Colo. 125

(Colo. 1954). The Court concludes that the decision of the

Board is not supported by competent evidence and is

therefore arbitrary and capricious.

OTHER ISSUES

The Cities contend that one of the conditions

imposed by the Planning Commission, that they compen-

sate the county for lost tax revenues, constitutes an illegal

tax. First, there is no evidence that there will be lost

revenues. Second, there is no procedure by which such

“lost” revenues can be determined and, therefore, the

basis of this tax is speculative. Furthermore, it is an

illegal tax, as the county has no authority to tax this

water project.

Finally, the Cities contend the permit application fee

charged is excessive. On the face of it, there appears to be

206a

merit to this assertion. The Court will address that issue

in a separate hearing.

THEREFORE, THE COURT ORDERS:

The Cities’ due process rights were violated in the

course of the denial of their permit applications. The

action of the Board was arbitrary and capricious and an

abuse of discretion. Consequently, the decision denying

the Cities’ permit applications is vacated and remanded

to the Board with directions to approve the three permits

in question, subject to the federally imposed conditions.

The Cities will set a hearing to determine the propri-

ety of the fees charged for the application.

DONE THIS 14 DAY OF July, 1992.

BY THE COURT:

/s/ Wm. Jones

DISTRICT JUDGE

207a

APPENDIX K

DISTRICT COURT, EAGLE COUNTY, COLORADO

Case No. 88 CV 142

ORDER ON RECONSIDERATION

CITY OF COLORADO SPRINGS AND CITY OF

AURORA,

Colorado municipal corporations,

Plaintiffs,

vs.

1. THE BOARD OF COUNTY COMMISSIONERS OF

THE COUNTY OF EAGLE, STATE OF COLORADO;

2. GEORGE A. GATES, DONALD H. WELCH, RICH-

ARD L. GUSTAFSON, in their official capacities as indi-

vidual members of said Board;

3. THE BOARD OF COUNTY COMMISSIONERS OF

THE COUNTY OF EAGLE, STATE OF COLORADO, in its

capacity as the permitting authority under

Sec.24-65.1-101, et seq., C.R.S.

4. THE EAGLE COUNTY PLANNING COMMISSION;

5. CHARLES RIDGWAY, DAVID SLEMON, DENNIS

GELVIN, DONALD PRICE, in their official capacities as

individual members of said Commission;

6. THE COUNTY OF EAGLE, STATE OF COLORADO;

7. AVON METROPOLITAN DISTRICT;

8. TOWN OF AVON, COLORADO;

10. COLORADO RIVER OUTFITTERS ASSOCIATION;

12. EAGLE COUNTY SHERIFF, in his official capacity;

13. HOLY CROSS WILDERNESS DEFENSE FUND;

15. RED CLIFF WATER AND SANITATION DISTRICT;

16. TOWN OF EAGLE, COLORADO;

17. TOWN OF GYPSUM, COLORADO;

18. TOWN OF MINTURN, COLORADO;

208a

19. TOWN OF REDCLIFF, COLORADO;

23. VAIL VALLEY CONSOLIDATED WATER DISTRICT;

25. EAGLE COUNTY HISTORICAL SOCIETY,

Defendants.

THIS MATTER comes before the Court on the Board

of County Commissioners of the County of Eagle’s (the

“County” or the “Board”) motion for reconsideration, or

in the alternative for entry of partial final judgment pur-

suant to Rule 54(b). Defendants Holy Cross Wilderness

Defense Fund (“HCWDF”) and Vail Valley Consolidated

Water District have also filed motions for reconsideration.

Collectively, the Court will refer to HCWDF, the County,

the Board and Vail Valley Consolidated Water District as

“Defendants.” The Court has read the Motion, Responses

and Replies, and being fully advised, makes the following

findings of fact:

The Defendants request that the Court reconsider its

order of July 14, 1992 (“Order”). In the Order, the Court

determined that the City of Colorado Springs and the

City of Aurora’s (“Cities”) due process rights were vio-

lated in the course of the Board’s denial of their permit

applications. In addition, the Court determined the action

of the Board was arbitrary and capricious and an abuse of

discretion. This Court further ordered the Board to issue

the three permits in question, subject to the conditions

imposed by the federal permitting agencies.

The Board argues that the Court’s Order deprived the

parties, other than the Cities, their due process rights by

denying the other parties an opportunity to rebut the

findings in the Cities’ revised wetlands mitigation plan.

209a

The Board argues that reopening the record was required

in order for it to consider the revised wetlands mitigation

plan; that it was not a legitimate alternative to take offi-

cial notice of the plan, without a chance for the other

parties to respond.

The Board argues that even if it erred in deciding not

to evaluate the Cities’ revised mitigation plan, the rem-

edy ordered by this Court, of directing the Board to issue

the permits, is inappropriate. The Board contends that

judicial review of an inferior tribunal’s discretionary

decision-making is limited to an analysis of whether that

tribunal exceeded its jurisdiction or abused its discretion,

and the court cannot fashion a remedy to cure a pro-

cedural defect. The Board contends that the proper rem-

edy here would be a remand for further proceedings.

Conversely, the Cities argue that the Court was cor-

rect in its rulings contained in the Order. Specifically, the

Cities contend that they were not asking the Board to

reopen the hearing record to take further evidence of

mitigation, but they wished the Board to take notice of

requirements imposed on the Cities by federal agencies

for mitigating wetlands injury. Furthermore, the Cities

contend that the Court was within its discretion in order-

ing the County to issue the disputed permits.

THE COURT makes the following Conclusions of

Law:

Although the Board attempts to rationalize its refusal

to consider the mitigation requirements mandated by

federal agencies as a move to protect due process rights,

this Court is not convinced. The Court did not expect the

210a

Board to reopen the hearing record concerning the speci-

fics of the mitigation plan, but rather assumed the Board

would balance its finding of inadequate mitigation

against the newly required mitigation measures. The

Court is of the opinion that the Board may take official

notice of federal requirements without reopening the

record as to the propriety of the specifics of the mitiga-

tion plan, especially since the other defendants who

object to such a procedure were participants in the fed-

eral agency process that led to the plan. The only issue up

for argument would be the requirements themselves,

which should be easy to discern from federal documents.

Therefore, the Court will not modify its findings of arbi-

trary and capricious or abuse of discretion.

A court may direct a government body to take a

specific action, such as issuing a license, when the Court

determines it would be futile to remand for re-determina-

tion. See Buddy and Lloyd’s Store No. 1, Inc. v. City Council,

337 P.2d 389 (Colo. 1959). The wide discretion which is

vested in a permitting authority in granting or denying

permits is not to be construed as authority to establish a

local public policy, either by express resolution or by

secret agreement, contrary to state and federal law. Id. at

391-392.

However, in this case the Court concludes it is a

better procedure to remand the decision to the Board for

proceedings in conformance with this Court’s orders.

Relief under C.R.C.P. 106(a)(4) is limited to a determina-

tion of whether the Board exceeded its jurisdiction or

abused its discretion. Beaver Meadows v. Board of County

Commissioners, 709 P.2d 928 (Colo. 1985).

2ila

THEREFORE, THE COURT ORDERS:

On reconsideration, the Court vacates that portion of its

previous Order requiring the Board to issue the Cities the

permits. The permitting decision is remanded to the Board

with directions to take official notice of the mitigation

requirements imposed on the Cities by federal agencies. This

Court’s previous Order stands in all other respects and is a

final judgment as defined in Rule 54(b), C.R.C-P.

DONE THIS 27 DAY OF JANUARY, 1993.

BY THE COURT:

/s/ Wm L Jones

DISTRICT JUDGE

CERTIFICATE OF MAILING

HENRY W. IPSEN

ATTORNEY AT LAW

1700 LINCOLN,

SUITE 4100

DENVER, CO 80203

JAMES R. FRITZE

ATTORNEY AT LAW

P.O. BOX 850

EAGLE, CO 81631

GREGORY L. JOHNSON

MARK T. PIFHER

ATTORNEYS AT LAW

104 S. CASCADE AVENUE,

#204

P.O. BOX 240

COLORADO SPRINGS, CO

80901-0240

JOHN W. DUNN

ATTORNEY AT LAW

108 SOUTH FRONTAGE

ROAD WEST

SUITE 204

P.O. BOX 2299

VAIL, CO 81658

WAYNE B. SCHROEDER

T. SHAUN SULLIVAN

ATTORNEYS AT LAW

1700 LINCOLN,

SUITE 3800

DENVER, CO 80203

LORI POTTER

SIERRA CLUB LEGAL

DEFENSE FUND

1631 GLENARM PLACE,

SUITE 300

DENVER, CO 80202

212a

FRANCES M. GREEN JOHN M. DINGESS )

ATTORNEY AT LAW ATTORNEY AT LAW |

1405 ARAPAHOE, #200 7800 EAST UNION

BOULDER, CO 80302 AVENUE

SUITE 200

EDWARD P. SANDS

ATTORNEY AT LAW

MOUNTAIN PLAZA,

SUITE 201

201 WEST THIRD STREET

RIFLE, CO 81650

DENVER, CO 80237

The foregoing order was placed in the U.S. Mail,

postage prepaid and affixed, addressed to the above par-

ties on January 27, 1993.

/s/ Carol S. Martin

213a

APPENDIX L

THE COURT OF APPEALS OF THE

STATE OF COLORADO

Case Number 93CA0386

ORDER

CITY OF COLORADO SPRINGS ET AL V EAGLE

COUNTY ET AL

Upon consideration of the Petition for Rehearing filed by

the Appellant Cross Appellee herein, the Petition is

hereby DENIED. It is ordered that issuance of the Man-

date is stayed to and including January 17, 1995 provided

that if a Petition for Writ of Certiorari is timely filed with

the Supreme Court of the State of Colorado, the stay shall

remain in effect until disposition of the cause by the

Supreme Court.

BY THE COURT:

Davidson, J.

Jones, J.

Rothenberg, J.

DATED: December 15, 1994

214a

APPENDIX M

SUPREME COURT, STATE OF COLORADO

CASE NO. 94SC765

CERTIORARI TO THE COLORADO COURT OF

APPEALS, 93CA0386 & 93CA0412

DISTRICT COURT, EAGLE COUNTY, 88CV142

ORDER OF COURT

(Filed June 6, 1995)

CITY OF COLORADO SPRINGS AND CITY OF

AURORA, COLORADO, municipal corporations,

Petitioners,

V.

THE BOARD OF COUNTY COMMISSIONERS OF THE

COUNTY OF EAGLE, STATE OF COLORADO; GEORGE

A. GATES, JOHNETTE PHILLIPS, JAMES E. JOHNSON,

JR., in their offical [sic] capacities as individual members

of said Board; THE BOARD OF COUNTY COMMISSION-

ERS OF THE COUNTY OF EAGLE, in its capacity as the

permitting authority under § 24-65-101 et seqg., C.R.S.;

THE EAGLE COUNTY PLANNING COMMISSION;

MARK DONALDSON, ROBERT TETHER, ARLENE

QUENON, ROBERT MORRIS, DONALD PRICE, in their

offical [sic] capacities as individual members of said com-

mission; THE COUNTY OF EAGLE, STATE OF COLO-

RADO; HOLY CROSS WILDERNESS DEFENSE FUND;

and VAIL VALLEY CONSOLIDATED WATER DISTRICT,

Respondents.

Upon consideration of the Petition for Writ of Cer-

tiorari to the Colorado Court of Appeals, and after review

rer a

215a

of the record, the briefs, and the judgment of said Court

of Appeals,

IT IS THIS DAY ORDERED that said Petition for Writ

of Certiorari shall be, and same hereby is, DENIED.

BY THE COURT, EN BANC, JUNE 5, 1995.

CHIEF JUSTICE ROVIRA and JUSTICE MUL-

LARKEY would grant as to the following issues:

Whether the court of appeals erred in allowing a

county, under the Colorado Land Use Act, § 24-65.1-101 et

seq., 10B C.R.S. (1988 & 1994 Supp.) (H.B. 1041), to veto a

municipal water project located on federal lands.

Whether the court of appeals erred in finding that the

county did not act arbitrarily and capriciously in denying

the municipalities their requested land use permits.

(Seal)

Whether the court of appeals erred in ruling that

Colorado home rule municipalities do not have standing

to pursue a claim for the regulatory taking of property

without just compensation.

cc: Mark T. Pifher

ANDERSON, GIANUNZIO, DUDE,

PIFHER & LEBEL, P.C.

104 S. Cascade Avenue, #204

P. O. Box 240

Colorado Springs, CO 80901-0240

Lori Potter

Munir Meghjee

SIERRA CLUB LEGAL DEFENSE FUND

1631 Glenarm Place, Suite 300

Denver, CO 80202

216a

James R. Fritze, Esq.

Eagle County Attorney

P.O. Box 850

Eagle, Colorado 81631

John M. Dingess, Esq.

Duncan, Ostrander, Varnell & Dingess, P.C.

7800 East Union Avenue, #200

Denver, CO 80237

Henry W. Ipsen, Esq.

Holme, Roberts & Owen

1700 Lincoln, Suite 4100

Denver, Colorado 80203

Frances M. Green, Esq.

2260 Baseline, Suite 200

Boulder, Colorado 80302

Wayne B. Schroeder, Esq.

Grimshaw & Harring

One United Bank Center, #3800

1700 Lincoln Street

Denver, Colorado 80203

Honorable William L. Jones

Eagle County District Court

Eagle County Courthouse

605 East Chambers Road

P.O. Box 597

Clerk of the District Court

Eagle County District Court

Eagle County Courthouse

605 East Chambers Road

P.O. Box 597

Eagle, CO 81631

Patrick H. Stanford, Clerk

Colorado Court of Appeals

217a

APPENDIX N

DISTRICT COURT, COUNTY OF EAGLE, STATE OF

COLORADO

Civil Action No. 88CV142

MEMORANDUM BRIEF IN SUPPORT OF PLAINTIFFS’

MOTION FOR SUMMARY JUDGMENT

CITY OF COLORADO SPRINGS AND

CITY OF AURORA,

Colorado municipal corporations,

Plaintiffs,

VS.

1.

N

o PND

THE BOARD OF COUNTY COMMISSIONERS OF

THE COUNTY OF EAGLE, STATE OF COLORADO;

GEORGE A. GATES, DONALD H. WELCH, RICH-

ARD L. GUSTAFSON, in their official capacities as

individual members of said Board;

THE BOARD OF COUNTY COMMISSIONERS OF

THE COUNTY OF EAGLE, STATE OF COLORADO,

in its capacity as the permitting authority under

§ 24-65.1-101, et seq., C.R.S.;

THE EAGLE COUNTY PLANNING COMMISSION;

CHARLES RIDGWAY, DAVID SLEMON, DENNIS

GELVIN, DONALD PRICE, in their official capacities

as individual members of said Commission;

THE COUNTY OF EAGLE, STATE OF COLORADO;

AVON METROPOLITAN DISTRICT;

TOWN OF AVON, COLORADO;

COLORADO COUNCIL OF TROUT UNLIMITED;

218a

10. COLORADO RIVER OUTFITTERS ASSOCIATION;

11. DIVISION OF WILDLIFE, STATE OF COLORADO;

12. EAGLE COUNTY SHERIFF, in his official capacity;

13. HOLY CROSS WILDERNESS DEFENSE FUND;

14. JAMES FRANKLIN LAMONT;

15. RED CLIFF WATER AND SANITATION DISTRICT;

16. TOWN OF EAGLE, COLORADO;

17. TOWN OF GYPSUM, COLORADO;

18. TOWN OF MINTURN, COLORADO;

19. TOWN OF REDCLIFF, COLORADO;

20. TOWN OF VAIL, COLORADO;

21. UPPER EAGLE REGIONAL WATER AUTHORITY;

22. UPPER EAGLE VALLEY SANITATION DISTRICT;

23. VAIL VALLEY CONSOLIDATED WATER DISTRICT;

24. VAIL ASSOCIATES, INC.; and

25. EAGLE COUNTY HISTORICAL SOCIETY,

Defendants.

* * *

C. THE BOARD HAS ATTEMPTED TO REGU-

LATE AREAS PRE-EMPTED BY FEDERAL

LAW.

Eagle County cannot apply its 1041 regulations to

this permitting process because it is pre-empted from so

doing by virtue of federal law. As previously indicated,

the Cities’ project is to be located entirely upon federal

ne ee eee en en ie eee

a RENE NTE

‘4

:

ee .

Yi :

*

219a

Forest Service lands. The Forest Service Management

Plan (Record, Vol. I, Exh. A-11) specifically states that the

White River National rest is for multiple use. This is

consistent with the language of the Federal Land Policy

Management Act (FLPMA) 43 U.S.C.A. § 1701, § 1732 and

the language of the National Forest Management Act, 16

U.S.C.A. § 1600, et seq., (West 1985) both of which encour-

age multiple use, including water resource development.

Pursuant to federal requirements under the National

Environmental Policy Act (NEPA), 42 U.S.C.A. § 4321, et

seq., (West 1977) the Forest Service performed an environ-

mental analysis which lead to a number of public hear-

ings, the submission of numerous written comments, and

the eventual issuance of a Final Environmental Impact

Statement (FEIS). (Record, Vol. I, Exh. A-l.) Eagle County

took a very active roll [sic] in this environmental review

process (Appendix J, pp. 14-17, Record, Vol. I, Exh. A-l),

and had numerous opportunities to place its concerns of

record and have them addressed by the federal agencies.

The Cities also obtained a FLPMA permit (Appendix C),

which permit provided the Cities with the necessary For-

est Service easement. As previously stated, this permit

contained numerous mitigation measures designed to

ensure that the project was constructed and operated in

an environmentally sound fashion. In addition, the Cities

received a Section 404 Permit from the U.S. Corps of

Engineers (Appendix D), which permit also embodied

numerous conditions addressing various environmental

issues including aesthetics, water quality, and wetlands

preservation. As to the latter concern, the Corps’ permit

specifically stated that the Cities had to devise a plan to

“prevent the loss of wetlands”. (Appendix D, p. 5.) Any

— ee ee ae

220a

mitigation utilized in conjunction with such plan “shall

not cause more than minimal visual intrusion to the wil-

derness area, and shall not have significant environmen-

tal impacts”. (Appendix D, p. 3.) It should also be noted

that the Corps found the alternative being permitted to

be consistent with §§ 101, 401, and 404 of the Clean Water

Act, NEPA, the Endangered Species Act, the Fish and

Wildlife Coordination Act, policies concerning scenic and

recreational values, and policies concerning energy con-

servation. (Appendix D, pp. 4-5.) Nevertheless, despite

the above federal approvals, the numerous protective

conditions contained in such approvals, Eagle County’s

participation in the federal process, and the location of

the project on federal lands, the Board made a contrary

finding as to the acceptability of the project and denied the

requested local land use.

The federal pre-emption doctrine has been succinctly

stated by the court in California Coastal Commission v.

Granite Rock Company, 480 U.S. 572, 107 S.Ct. 1419, 94

L.Ed.2d 577, 592 (1987):

State law can be pre-empted in either of two

general ways. If Congress evidences an intent to

occupy a given field, any state law falling within

that field is pre-empted. [Citations deleted.] If

Congress has not entirely displaced state regula-

tion over the matter in question, state law is still

pre-empted to the extent it actually conflicts

with federal law, that is, when it is impossible to

comply with both state and federal law, [citation

deleted] or where the state law stands as an

obstacle to the accomplishment of the full pur-

poses and objectives of Congress. [Citations

deleted. |]

221a

This is the same analysis employed by the Colorado

Supreme Court in Brubaker v. Board of County Commission-

ers, 652 P.2d 1050, 1055 (Colo.1982). Both of these deci-

sions inexorably lead to the conclusion that the Board

could not deny the permits being sought by the Cities.

In Brubaker, plaintiff sought from the Board of

County Commissioners a special use permit for purposes

of conducting certain mining operations which had

received federal approval. The Board denied the permit

application on the grounds that the activity was inconsis-

tent with the long-range plans of the County and incom-

patible with uses on surrounding properties. However,

the Colorado Supreme Court held that such a denial was

pre-empted by federal law as it stood as an “obstacle to

the accomplishment and execution of the full purposes

and objectives of Congress”. Brubaker v. Board of County

Commissioners, 652 P.2d at 1055.

This activity has been subjected to the necessary

federal review and approvals, but the Board

asserts that it may now deny the appellants

their right to use the land in this manner. The

Board seeks not merely to supplement the fed-

eral scheme, but to prohibit the very activities

contemplated and authorized by federal law.

Such a veto power is not consistent with the

Supremacy Clause.

Brubaker v. Board of County Commissioners, 652 P.2d at

1056. Though acknowledging that it may be possible to

impose “reasonable” environmental conditions upon

such an activity, the Court chastised the County for

attempting not to regulate, but to “prohibit” federally

222a

authorized activities. Brubaker v. Board of County Commis-

sioners, 652 P.2d at 1059.

In so holding, the Brubaker court cited with approval

the decision of the Ninth Circuit in Ventura County v. Gulf

Oil Corp., 601 F.2d 1080 (9th Cir. 1979) aff’d mem. 445 U.S.

947 (1980), wherein Gulf sought to secure from the county

an open space permit prior to undertaking its mineral

exploration activities on federal lands within the county.

In holding that the governing federal legislation pre-

empted such county regulation, as there existed an

impermissible conflict between the two bodies of law, the

court stated:

Despite this extensive federal scheme reflecting

concern for the local environment as well as

development of the nation’s resources, Ventura

demands a right of final approval. Ventura seeks

to prohibit further activity by Gulf until it

secures an Open Space Use Permit which may

be issued on whatever conditions Ventura deter-

mines appropriate, or which may never be

issued at all. The federal Government has autho-

rized a specific use of federal lands, and Ventura

cannot prohibit that use, either temporarily or

permanently, in an attempt to substitute its

judgment for that of Congress.

Ventura County v. Gulf Oil Corp., 601 F.2d at 1084. See also:

Federal Power Commission v. Oregon, 349 U.S. 435 (1955).

The Ventura court then continued:

Finally, we are reassured in the correctness of

our decision by policy considerations implicitly

reflected in the structure and operation of the

Mineral Lands Leasing Act of 1920 and the

National Environmental Policy Act of 1969 (42

nD RU URMie a Fabh haatir og tages eas

223a

U.S.C. §§ 4321, et seq.). As Ventura recognized in

filing its second amended complaint, the

National Environmental Protection Act (NEPA)

and the guidelines, regulations, and executive

orders issued in pursuance of that act, mandate

extensive federal consideration and federal-local

cooperation concerning the local, environmental

impact of federal action under the Mineral

Lands Leasing Act. If federal officials fail to

comply with these requirements, Ventura has a

remedy against those officials.

Ventura County v. Gulf Oil Corp., 601 F.2d at 1086. Sim-

ilarly, in the present instance, the County seeks to pro-

hibit the federally authorized activity, having denied the

requested permits. It does so even though the NEPA

process has been invoked and the County has partici-

pated therein.1¢ Such conduct is contrary to the holdings

in both Brubaker, 652 P.2d 1050 (Colo.1982) and Ventura

County, 601 F.2d 1080 (9th Cir. 1979) aff’d mem. 445 U.S.

947 (1980).

The recent decision by the United States Supreme

Court in California Coastal Commission v. Granite Rock, 480

U.S. 572, 107 S.Ct. 1419, 94 L.Ed.2d 577, is consistent with

the above holdings. Although the sharply divided Court

ruled that reasonable state environmental regulations

covering forest service land were not per se pre-empted

by federal law, the five to four majority described this

16 The Board did note an indication of “deficiencies in the

Environmenta! Impact Statement,” (Appendix F, p. 7, Finding

No. 12) withou’ tying their finding to any local criteria. If the

Board was dissatisfied with the EIS process, it could have

sought review thereof. Instead, it sat on its hands.

224a

holding as a “narrow” rejection of a “purely facial chal-

lenge.” Granite Rock, L.Ed.2d at 591, 599. In Granite Rock,

the State had not participated in the Federal permit pro-

cess. Moreover, Granite Rock had not even applied for a

State permit, arguing that there was no possible set of

conditions that the State could place on its permit that

would not conflict with federal law. It therefore had

“ ... lost the possibility of making this argument [prohi-

bition] in this litigation”. Granite Rock, L.Ed.2d at 596.

Significantly, the majority decision assumed without

deciding, an assumption deemed “correct” in the dissent

by Justices White and Scalia and consistent with the

decision in Ventura County, that “the combination of the

NFMA and the FLPMA pre-empt the extension of state

land use plans .. . in national forest lands”. Granite Rock,

L.Ed.2d at 594. The Court went on to stress that the State

was not asking Granite Rock to comply with a local land

use plan or zoning ordinance, but rather with the regula-

tions of a State Commission concerned with “compliance

with the environmental criteria in the Coastal Act itself”.

Granite Rock, L.Ed.2d at 595 n.2. The Court accepted the

State’s assertion that it did not seek to prohibit the activ-

ity [mining], but only to regulate the environmental

aspects of the activity. Granite Rock, L.Ed.2d at 595. The

Court placed emphasis on the State’s assertion that the

federal legislation did not pre-empt state environmental

regulation of federal land “unless the regulation prohibits

mining altogether” (Court’s emphasis) and cautioned that

there could be “state environmental regulation so severe

that a particular land use would become commercially

impracticable”. Granite Rock, L.Ed.2d at 595. However,

since Granite Rock had not applied for the state permit, it

ee

iy ated

———

ee ee NY eee Pe ee ee Oe Tee OD eae ee ee a

225a

was unable to show the conditions which the State would

have placed upon its permit. Given the “as yet uniden-

tified conflicts with the federal scheme” and the “barren

record,” the Court cautiously accepted the possibility that

the State might impose reasonable environmental regula-

tions. Granite Rock, L.Ed.2d at 600.

The facts of the instant case are clearly different than

those presented in Granite Rock, and are indeed on point

with those in the Brubaker, 652 P.2d 1050 (Colo.1982)

decision. In the present case, the County actively partici-

pated in the federal process. To the extent the County is

now seeking to raise environmental concerns they were

specifically addressed in that process.!” Further, unlike

17 Even environmental concerns, assuming they can be

addressed by the local entity, cannot be of a general or generic

character or they will run a-foul of the pre-emption doctrine.

Without deciding to what extent the City might

impose additional environmental restrictions on the

facility in exercising its traditional land use authority,

I find the denial of the permit based on generalized

environmental or health and safety concerns, where

the EPA has already found the health, safety, and

environmental risk to be acceptable, is impermissible

under the doctrine of federal pre-emption. Allowing

local governments to impose a permit requirement

and then to deny the permit on unspecified environ-

mental grounds, without articulating specific health

or safety concerns or setting forth particular environ-

mental requirements which the facility must meet,

surely frustrates congressional intent behind the

whole research, development, and demonstration

program.

Ogden Environmental Services v. City of San Diego, 687 F.Supp.

1436, 1448 (S.D. CA 1988). Just such inadequate articulation is in

evidence in this case.

226a

Granite Rock, the Cities applied for the local permit, and

there is now a record showing the reasons for rejection by

the local authority, i.e. a record establishing the irrecon-

cilable conflict. Indeed, this Court is now faced with a

local entity attempting to enforce what has been deter-

mined by the Tenth Circuit to be local regulations, City

and County of Denver v. Bergland, 695 F.2d 465, 485 (10th

Cir. 1982), and to either absolutely prohibit the activity, in

the case of the Board, or to impose conditions so severe as

to make the Project commercially impracticable, in the

case of the Planning Commission. Thus, not only is the

state regulatory scheme required by Granite Rock absent,

but even if regulations in question were being imposed

by the state, they would not pass the “reasonableness”

test.

In addition, the County is in fact attempting to

impose “land use regulations,” not environmental regula-

tions. This includes those regulations adopted under

§ 24-65.1-101, et seq., 10B C.R.S. (1988), which have been

characterized by the legislature as “land use planning”

tools and codified as part of the land use planning stat-

utes.!8 See § 24-65.1-101(1)(c), 10BC.R.S. (1988). The “situ-

ation in the present case is the very result feared by the

dissenting opinion in Granite Rock, i.e. “duplicative” pro-

cesses wherein a local regulator has given itself final

18 In City and County of Denver v. Bergland, 517 F.Supp. 155,

174 n.18 (D.C. CO 1981), even Grand County seemingly admit-

ted that its 1041 regulations fell within the category of “police

power regulations involving land use, construction permits and

zoning,” i.e. land use regulation.

227a

authority to determine how federal lands are to be used.

Granite Rock, L.Ed.2d at 602.

Indeed, J. Scalia ends his opinion with the following

observation:

If environmental control is, as California now

assures us, its limited objective in this case, then

it must simply achieve that objective by means other

than a land use control scheme. If and when it does

so, we may have occasion to decide (as we need

not today) whether state environmental controls

are also pre-empted. More likely, however, the

question will not arise in the future, as it has not

arisen in the past, because of the Federal Gov-

ernments voluntary accommodation of state

environmental concerns — an accommodation

that could not occur here only because Califor-

nia neglected to participate in the proceedings.

Not only has the above-referenced “accommodation”

occurred in this instance, but the County persists in its

attempt to impose its own controls through its local land

use plan. This Court cannot allow such an outcome. Bru-

baker v. Board of County Commissioners, supra, is the con-

trolling law in Colorado and its analysis dictates the

result in this litigation. Federal pre-emption must be

found to exist.

228a

DISTRICT COURT, COUNTY OF EAGLE, STATE OF

COLORADO

Civil Action No. 88CV142

MEMORANDUM BRIEF IN RESPONSE TO EAGLE

COUNTY’S MOTION TO DISMISS

CITY OF COLORADO SPRINGS AND

CITY OF AURORA,

Colorado municipal corporations,

Plaintiffs,

VS.

1.

o oN

THE BOARD OF COUNTY COMMISSIONERS OF

THE COUNTY OF EAGLE, STATE OF COLORADO;

GEORGE A. GATES, DONALD H. WELCH, RICH-

ARD L. GUSTAFSON, in their official capacities as

individual members of said Board;

THE BOARD OF COUNTY COMMISSIONERS OF

THE COUNTY OF EAGLE, STATE OF COLORADO,

in its capacity as the permitting authority under

§ 24-65.1-101, et seq., C.R.S.;

THE EAGLE COUNTY PLANNING COMMISSION;

CHARLES RIDGWAY, DAVID SLEMON, DENNIS

GELVIN, DONALD PRICE, in their official capacities

as individual members of said Commission;

THE COUNTY OF EAGLE, STATE OF COLORADO;

AVON METROPOLITAN DISTRICT;

TOWN OF AVON, COLORADO;

COLORADO COUNCIL OF TROUT UNLIMITED;

LAA FMP 4 5h trranginreyrceds

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a er Gy

“Na

10.

11.

12.

13.

14.

15.

16.

17.

18.

19.

20.

21.

22.

23.

24.

25.

229a

COLORADO RIVER OUTFITTERS ASSOCIATION;

DIVISION OF WILDLIFE, STATE OF COLORADO;

EAGLE COUNTY SHERIFF, in his official capacity;

HOLY CROSS WILDERNESS DEFENSE FUND;

JAMES FRANKLIN LAMONT;

RED CLIFF WATER AND SANITATION DISTRICT;

TOWN OF EAGLE, COLORADO;

TOWN OF GYPSUM, COLORADO;

TOWN OF MINTURN, COLORADO;

TOWN OF REDCLIFF, COLORADO;

TOWN OF VAIL, COLORADO;

UPPER EAGLE REGIONAL WATER AUTHORITY;

UPPER EAGLE VALLEY SANITATION DISTRICT;

VAIL VALLEY CONSOLIDATED WATER DISTRICT;

VAIL ASSOCIATES, INC.; and

EAGLE COUNTY HISTORICAL SOCIETY,

Defendants.

230a

I. PLAINTIFFS HAVE STANDING TO ASSERT

THEIR SIXTH AND TWELFTH CLAIMS FOR

RELIEF AS HOME RULE MUNICIPALITIES IN

THEIR CAPACITY AS OWNERS OF CERTAIN

DECREED CONDITIONAL WATER RIGHTS.

A. The “per se” exclusionary rule on standing, as

developed by the federal courts, should not

apply.

Defendants assert that Plaintiffs have no standing to

bring the Sixth and Twelfth Claims. Defendants’ assertion

is not based upon the standing test announced in Wimb-

erly v. Ettenberg, 194 Colo. 163, 470 P.2d 535 (1979), i.e.

“(t]he proper inquiry on standing is whether the plaintiff

has suffered injury in fact to a legally protected interest

as contemplated by statutory or constitutional provi-

sions.” Wimberly, supra at 168. Rather, Defendants assert

that the mere identity of Plaintiifs is an absolute bar to

standing. That is to say, Plaintiffs are precluded “per se”

from bringing such claims.

Defendants rely entirely on a line of cases which,

they claim, hold that a municipality can never have

standing to sue the state of which it is a creature or the

political subdivisions of that state. Defendants then assert

that the Colorado Supreme Court has recently adopted

this position in a footnote (dicta) to Town of Orchard City

v. Board of County Commissioners of Delta County, 751 P.2d

1003 (Colo. 1988). However, a close examination of both

the applicable federal and Colorado cases upon the subv-

ject inexorably lead to a different conclusion.

One must start such an examination with a review of

Justice White’s dissent from the denial of certiorari in

23l1a

City of Lake Tahoe v. California Tahoe Regional Planning

Agency, 449 U.S. 1039, 66 L.Ed.2d 502, 101 S.Ct. 619 (1980)

which is also cited by the Colorado Supreme Court in the

Orchard City footnote quoted by Defendants. In that dis-

sent, Justice White was critical of what he termed the

“per se rule” of no standing as cited by Defendants

herein, finding it to be inconsistent with the decision in

Board of Education v. Allen, 392 U.S. 236 (1968). In addi-

tion, he referenced Rogers v. Brockette, 588 F.2d 1057 (5th

Cir. 1979), upon which a conflicting line of cases has

developed.

The Rogers court held that while some of the lan-

guage in the opinions cited by Defendants is indeed

broad enough to seemingly support Defendants’ argu-

ment, said decisions, properly interpreted, do not sup-

port the conclusions advocated by Defendants. Rogers v.

Brockette, 588 F.2d at 1067-1071. As explained by the

Rogers court, the line of cases relied upon by the Defen-

dants are the descendants of Trustees of Dartmouth College

v. Woodward, 17 U.S. (4 Wheat.) 518, 4 L.Ed 629 (1919)

wherein New Hampshire was prohibited from modifying

a charter that the colonial government had issued to

Dartmouth College by virtue of the contract clause to the

U.S. Constitution. In the famous dicta to that decision,

Chief Justice Marshall sought to avoid a situation

wherein citizens of the state could claim they had a

“contract” with the state, because such an interpretation

would bar the state from impairing any such contract.

This would leave a state practically unable to legislate or

allocate political power within its subdivisions. Justice

Marshall’s solution was to enunciate the principle that

certain guarantees of the U.S. Constitution should not be

232a

interpreted to interfere with a state’s control over the

allocation of its political powers.!

In Rogers, Judge Goldberg also described Trenton v.

New Jersey, 262 U.S. 182, 43 S.Ct. 534, 67 L.Ed 937 (1923),

which is cited by Defendants, as “typical” of the series of

cases following Dartmouth. Rogers v. Brockette, 588 F.2d at

1067. In that case, the state modified a charter that it had

previously given to the municipality. In holding that the

municipality had no standing, the Court extensively

quoted from Hunter v. Pittsburgh, 207 U.S. 161, 178, 179,

52 L.Ed. 151, 159, 160, 28 S.Ct. 40 (1907), which is “usually

considered the leading example.” Rogers v. Brockette, 588

F.2d at 1067.2 However, when these cases were decided,

1 The line of cases that followed Dartmouth were faithful to

Justice Marshall’s holding that the Constitution does not inter-

fere with the internal political organization of states. In each

case the Court reviewed the merits of the claim, and determined

that the municipality had no right under the particular constitu-

tional provisions it invoked. Although these decisions were

framed in terms of standing, the decisions are actually substan-

tive interpretations of the constitutional provisions involved in

those cases. Rogers v. Brockette, 588 F.2d at 1070.

2 The Hunter case, which involved a consolidation of the

cities of Allegheny and Pittsburgh, contains a classic description

of the unlimited power of states over municipalities. Its ratio-

nale is that municipal corporations, as “creatures of the state,”

exist by virtue of legislative enactments and can at any time be

terminated by the State. Other decisions in this line of cases

speak of a theoretical unity of interests, intrawiural disputes

between political subdivisions charged with the same statewide

goal, and the incongruity of a subordinate local agency suing its

administrative and supervisory superior over the state alloca-

tion of political power. The logic of these decisions is that the

boundaries of a municipality were given by the State and a

municipality has no property right to those boundaries as

233a

“standing” meant something different from what it

means today. Rogers v. Brockette, 588 F.2d at 1070. The old

legal standing test went to the merits of the case. Associa-

tion of Data Processing Service Organizations v. Camp, 397

U.S. 150, 153 (1970). However, by resolving these substan-

tive issues under the rubric of standing principles, these

decisions have been misinterpreted as a broad denial of

access to the courts. As a result, substantive issues have

become distorted and parties have been deprived of the

full consideration they deserved. Municipal Corporation

Standing To Sue The State: Rogers v. Brockette, 93

Harv.L.Rev. 586 at 590, 591 (1980).3 Plaintiffs submit that

the Supreme Court implicitly acknowledged, in Hunter v.

Pittsburgh, that a municipality can raise the claim that its

“private” contract and property rights have been

against its creator. Cf: Township of River Vale v. Town of Orange-

town, 403 F.2d 684 (2nd Cir. 1968) (municipality is a person

within meaning of Fourteenth Amendment); City of Santa Clara

v. Andrus, 572 F.2d 660 (9th Cir. 1978).

3 The existing degree of confusion is illustrated by the fact

that Rogers v. Brockette is confirmed by the same line of cases

cited by Defendants. As Judge Goldberg points out, the Hunter

court said:

It will be observed that, in describing the absolute

power of the state over the property of municipal

corporations, we have not extended it beyond property

held or used for governmental purposes. Such corpora-

tions are sometimes authorized to hold and do hold

property for the same purposes that property is held by

private corporations or individuals . . . it has been held

that, as to the latter class of property, the legislature is

not omnipotent. (emphasis added) 28 S.Ct. at 47.

Rogers v. Brockette, 588 F.2d at 1069.

234a

impaired. Such is explicitly stated by Justice Goldberg in

Rogers v. Brockette, 588 F.2d at 1069, 1070.

The Supreme Court subsequently discussed its prior

decisions in this area in Gomillion v. Lightfoot, 364 U.S.

339, 5 L.Ed. 110, 81 S.Ct. 125 (1960). While recognizing

that the numerous decisions dealing with the creation of

municipalities and with taxation clearly state that the

Due Process Clause affords no immunity against “mere

inequalities in tax burdens. . . as an indirect consequence

of a State’s exercise of its political powers”, the Court

noted that the Hunter opinion itself “intimates that a state

legislature may not be omnipotent even as to the disposi-

tion of some types of property owned by municipal cor-

porations.” Gomillion, supra, 5 L.Ed. at 114 and 115. The

Court warned that “exalting” the State’s political power

to an absolute would “misconceive the reach and rule” of

Hunter and related cases relied upon by Defendants and

stated:

. a correct reading of this seemingly uncon-

fined dicta of Hunter and kindred cases is not

that the State has plenary power to manipulate

in every conceivable way, for every conceivable

purpose, the affairs of its municipal corpora-

tions, but rather that the State’s authority is

unrestrained by the particular prohibitions of

the Constitution considered in those cases.

Gomillion v. Lightfoot, 5 L.Ed.2d at 114-115.

Thus, as noted above, a number of courts have called

the “per se rule” into question. This includes one of the

cases cited by Defendants, U.S. v. State of Alabama, 791

F.2d 1450 (4th Cir. 1986). The court in U.S. State of Ala-

bama held that the per se rule did not apply in that circuit,

235a

but went on to hold that “[i]n the instant case, .. .

ASU ... may not raise a Fourteenth Amendment

claim... .” (emphasis added). In that case, Alabama State

University was attempting to realign itself as a plaintiff in

a case against the State Board of Education. Nevertheless,

it is significant that the U.S. v. Alabama court upheld the

rights of individual intervenors to maintain the action

against the Board of Education. This is essentially the

position taken by the Colorado Supreme Court in the

Orchard City case cited above, where individual citizens

were allowed to pursue the tax dispute against the

county.

Unless this Court wishes to add individual citizens of

Colorado Springs and Aurora as Plaintiffs to this action,

the present Plaintiffs are arguably the only parties that

may present the constitutional issues which are correctly

invoked in the present case. If defendants succeed in

advancing their distorted view of standing, the Defen-

dants would be insulated from scrutiny. However, a care-

ful review of the issues in the instant case reveals that the

cases cited by Defendants are not dispositive of this

dispute, as a “per se” rule should not apply, and, in fact,

has never been applied by the Colorado courts.

* * *

C. Plaintiffs have standing in their proprietary

capacity.

Further, in the Sixth and Twelfth Claims for Relief,

Plaintiffs are before this Court in a dual capacity, i.e. in

their governmental capacity and in their proprietary

capacity as the owners of decreed conditional water

236a

rights. Defendants’ argument improperly concentrates

exclusively on the first capacity. However,

. it is well settled that a city in operating a

water works system acts in its proprietary or

business, and not in its political or govern-

mental capacity, and in so acting is governed by

the same rules that apply to a private corpora-

tion.

County of Larimer v. City of Fort Collins, 68 Colo. 364, 367,

189 P. 929, 930 (1920). Although the distinction between

“governmental” and “proprietary” capacity has been crit-

icized and/or abolished for liability purposes, Clark v.

Town of Estes Park, 686 P.2d 777 (Colo. 1984), the Colorado

Supreme Court (en banc) has reaffirmed the distinction in

municipal water supply cases as recently as 1985. Denver

v. Colorado River Water Conservation District, 696 P.2d 730

(Colo. 1985).

The “per se” rule only makes sense where the cases

deal with deliberate allocations of political authority

between the state and its political subdivisions. None of

the rationale about “creatures of the state” is relevant

where, as here, the municipality is acting in a proprietary

capacity in the clearest sense of that distinction.®

5 It cannot be forgotten that Plaintiffs are acting as water

utilities in the development of those water rights for which

county permits are being sought. It is generally recognized that

public utilities possess constitutional due process rights. See:

Long Island Lighting Co. v. Cuomo, 666 F.Supp. 370 (N.D. N.Y.

1987); Potomac Elec. Power v. Dist. of Columbia Gov., 651 F.Supp.

907 (D. D.C. 1986).

237a

D. The “per se” exclusionary rule on standing

does not apply to Colorado home rule munici-

palities.

In addition, the “creature of the state” rationale can

never apply to home rule municipalities in the State of

Colorado. The home rule provisions of the Colorado Con-

stitution provide that Plaintiffs are no longer creatures of

the state legislature but derive their powers directly from

the Colorado Constitution.

The very essence of a “Home Rule City” is

embodied in the constitutional mandate that in

its local and municipal affairs the City has full,

complete and exclusive authority. The legisla-

ture is powerless to change this essential con-

cept of home rule.

Four-County Metropolitan Capital Improvement District v.

Board of County Commissioners, 149 Colo. 284, 304, 369 P.2d

67 (1962). The language found in Hunter and Trenton

allowing the state “at its pleasure” to “modify or with-

draw all such powers”, to “take without compensation

such property”, “repeal the charter, and destroy the cor-

poration” is simply not relevant.

In fact, the Colorado Supreme Court has recently

ruled that home rule cities have standing to challenge the

validity of state statutes under certain circumstances. In

Denver Urban Renewal Authority v. Byrne, 618 P.2d 1374

(Colo. 1980), the Court reviewed the rationale of the per

se rule, noting a number of cases which held that political

subdivisions of the state exist only “for the convenient

administration of the state government, created to carry

out the will of the state.” The Court harmonized this rule

with the standing rule in Wimberly v. Ettenberg supra, by

238a

reasoning that while political subdivisions of the state

may have suffered an injury, the “difficult question is

whether a legally protected interest is implicated.” Denver

Urban Renewal Authority v. Byrne, 618 P.2d at 1380. The

Court ruled that the Colorado Constitution confers a

legally protected interest in local concerns upon a home

rule city which is not inferior to the General Assembly.

Denver Urban Renewal Authority v. Byrne, 618 P.2d at 1381.

In so holding, the Court quoted Four-County, supra:

In numerous opinions handed down by this

court extended over a period of fifty years, it

has been made perfectly clear that when the

people adopted Article XX they conferred every

power theretofore possessed by the legislature to

authorize municipalities to function in local and

municipal affairs. (emphasis in original.) 360

P.2d at 72.

The result does not change when the issue is one of

statewide concern. Although Plaintiffs maintain in their

Second and Third Claims for Relief that the activities in

issue are matters of local concern, Plaintiffs would still

have standing if the issue was held to be one of statewide

concern. In City of Colorado Springs v. State of Colorado, 626

P.2d 1122 (Colo. 1981), the City was found to have stand-

ing to argue constitutional violations, the Court holding

that a matter of statewide concern (establishment of fire-

men’s pension plans) was a local matter to the extent to

which a home rule city must budget, assess and collect

taxes to provide financial support for the plan. “To hold

that no injury in fact would result to the city’s constitu-

tionally protected interests . . . would be to ignore real-

ities of local government.” City of Colorado Springs v. State,

626 P.2d at 1127. Similarly, in the present instance, the

239a

development and use of the Cities water rights involves

the exercise of purely local prerogatives which must be

respected.

240a

COURT OF APPEALS, STATE OF COLORADO

Case No. __

NOTICE OF APPEAL

DISTRICT COURT, COUNTY OF EAGLE,

STATE OF COLORADO Civil Action No. 88CV142,

Judge William L. Jones

CITY OF COLORADO SPRINGS

AND CITY OF AURORA,

Colorado municipal corporations,

Plaintiffs-Appellees,

1. THE BOARD OF COUNTY COMMISSIONERS OF

THE COUNTY OF EAGLE, STATE OF COLORADO;

2. GEORGE A. GATES, DONALD H. WELCH, RICH-

ARD L. GUSTAFSON, in their official capacities as

individual members of said Board;

3. THE BOARD OF COUNTY COMMISSIONERS OF

THE COUNTY OF EAGLE, STATE OF COLORADO,

in its capacity as the permitting authority under

§ 24-65.1-101 et seqg., C.R.S.;

THE EAGLE COUNTY PLANNING COMMISSION;

CHARLES RIDGWAY, DAVID SLEMON, DENNIS

GELVIN, DONALD PRICE, in their official capacities

as individual members of said Commission;

THE COUNTY OF EAGLE, STATE OF COLORADO;

AVON METROPOLITAN DISTRICT;

TOWN OF AVON, COLORADO;

i >

OND

24la

COLORADO COUNCIL OF TROUT UNLIMITED;

COLORADO RIVER OUTFITTERS ASSOCIATION;

EAGLE COUNTY SHERIFF; in his official capacity;

HOLY CROSS WILDERNESS DEFENSE FUND;

RED CLIFF WATER AND SANITATION DISTRICT;

TOWN OF EAGLE, COLORADO;

TOWN OF GYPSUM, COLORADO;

TOWN OF MINTURN, COLORADO;

TOWN OF REDCLIFF, COLORADO;

TOWN OF VAIL, COLORADO;

UPPER EAGLE REGIONAL WATER AUTHORITY;

UPPER EAGLE VALLEY SANITATION DISTRICT;

VAIL VALLEY CONSOLIDATED WATER DISTRICT;

VAIL ASSOCIATES, INC.; and

EAGLE COUNTY HISTORICAL SOCIETY,

Defendants-Appellants.

* + *

5. Whether the Board is prohibited on federal pre-

emption grounds from regulating federally-approved

activities on U.S. Forest Service lands in order to mitigate

or reduce their environmental impacts, and whether the

Court’s invalidation of the Board’s findings numbered

(6, 10, 19), 11(14, 15), III(A) (1,2), I1(B)(1, 2), IV(1, 2) on

that basis was proper.

* * *

242a

COURT OF APPEALS, STATE OF COLORADO

Case No. 93CA386

NOTICE OF CROSS-APPEAL

CITY OF COLORADO SPRINGS

AND CITY OF AURORA,

Colorado municipal corporations,

Plaintiffs-Appellees /Cross-Appellants,

1. THE BOARD OF COUNTY COMMISSIONERS OF

THE COUNTY OF EAGLE, STATE OF COLORADO;

2. GEORGE A. GATES, DONALD H. WELCH, RICH-

ARD L. GUSTAFSON, in their official capacities as

individual members of said Board;

3. THE BOARD OF COUNTY COMMISSIONERS OF

THE COUNTY OF EAGLE, STATE OF COLORADO,

in its capacity as the permitting authority under

§ 24-65.1-101 et seq., C.R.S.;

THE EAGLE COUNTY PLANNING COMMISSION;

CHARLES RIDGWAY, DAVID SLEMON, DENNIS

GELVIN, DONALD PRICE, in their official capacities

as individual members of said Commission;

THE COUNTY OF EAGLE, STATE OF COLORADO;

AVON METROPOLITAN DISTRICT;

TOWN OF AVON, COLORADO;

COLORADO COUNCIL OF TROUT UNLIMITED;

COLORADO RIVER OUTFITTERS ASSOCIATION;

EAGLE COUNTY SHERIFF, in his official capacity;

i >

Se CPN

— ©

243a

12. HOLY CROSS WILDERNESS DEFENSE FUND;

13. RED CLIFF WATER AND SANITATION DISTRICT;

14. TOWN OF EAGLE, COLORADO;

15. TOWN OF GYPSUM, COLORADO;

16. TOWN OF MINTURN, COLORADO;

17. TOWN OF REDCLIFF, COLORADO;

18. TOWN OF VAIL, COLORADO;

19. UPPER EAGLE REGIONAL WATER AUTHORITY;

20. UPPER EAGLE VALLEY SANITATION DISTRICT;

21. VAIL VALLEY CONSOLIDATED WATER DISTRICT;

22. VAIL ASSOCIATES, INC.; and

23. EAGLE COUNTY HISTORICAL SOCIETY,

Defendants-Appellants.

This cross-appeal is initiated by Plaintiffs-Appellees /

Cross-Appellants, City of Colorado Springs and City of

Aurora, Colorado home rule municipal corporations.

* + *

Il. ISSUES TO BE RAISED ON APPEAL

1. Are the Cities “citizens” for purposes of the Fifth

and Fourteenth Amendments of the U.S. Constitution,

with standing to pursue alleged due process violations,

including the taking of property without just compensa-

tion?

244a

COLORADO COURT OF APPEALS Tr. Ct. No. 88CV142

Case No. 93 CA 386 and 93 CA 412

COMBINED ANSWER AND REPLY BRIEF OF PLAIN-

TIFF-APPELLANTS, CROSS-APPELLANTS, THE

CITIES OF AURORA AND COLORADO SPRINGS

CITY OF COLORADO SPRINGS AND

CITY OF AURORA,

Colorado municipal corporations,

Plaintiffs-Appellants-Cross-Appellees,

v.

THE BOARD OF COUNTY COMMISSIONERS OF THE

COUNTY OF EAGLE, STATE OF COLORADO; GEORGE

A. GATES, JOHNETTE PHILLIPS, JAMES E. JOHNSON,

JR., in their official capacities as individual members of

said Board; THE BOARD OF COUNTY COMMISSION-

ERS OF THE COUNTY EAGLE, STATE OF COLORADO,

in its capacity as the permitting authority under

§24-65.1-101 et seq., C.R.S.; THE EAGLE COUNTY PLAN-

NING COMMISSION; MARK DONALDSON, ROBERT

TETHER, ARLENE QUENON, ROBERT MORRIS,

DONALD PRICE, in their official capacities as individual

members of said Commission; THE COUNTY OF EAGLE,

STATE OF COLORADO; HOLY CROSS WILDERNESS

DEFENSE FUND; and VAIL VALLEY CONSOLIDATED

WATER DISTRICT.

Defendants-Appellees-Cross-Appellants.

245a

ANDERSON, JOHNSON &

GIANUNZIO, P.C.

Mark T. Pifher, #12629

Jonathan C. Dehmlow, #23454

Stephen J. Lebel, #8367

104 S. Cascade Ave., Suite 204

Colo. Spgs., CO 80903

(719) 632-3545

ATTORNEYS FOR PLAINTIFFS-

APPELLANTS/CROSS-APPELLEES,

CITY OF COLORADO SPRINGS AND

CITY OF AURORA

+ * +

B. THE COUNTY REGULATIONS WERE PRE-

EMPTED UNDER STATE AND FEDERAL

LAW.

1. The County Land Use Controls Were Pre-

Empted Under Federal Law.

The District Court, relying upon the decisions in

Brubaker v. Board of County Comm'rs, El Paso County, 652

P.2d 1050 (Colo. 1982) and California Coastal Comm'n v.

Granite Rock Co., 480 U.S. 572 (1987), correctly concluded

that the County could not impose land use regulations

upon this project, which is located entirely on federal

lands.!? In arguing to the contrary, defendants once again

misconstrue both the operative facts and the law.

12 Though Defendants attempt to characterize many of the

local regulations as “environmental” in nature, they are in fact

land use determinations. The “quality and quantity of the river

rafting experience” is a land use decision, i.e., will the County

have water diversions or aquatic playgrounds. Similarly, regu-

lation of the area as a “wilderness” is a land use choice. Though

246a

Typical of the Fund’s outright misrepresentation of

the facts is its assertion on page 15 of its Brief that the

federal permits obtained by the Cities indicated that a

local 1041 permit was required. The permit actually pro-

vides:

Eagle County and other Counties advise the

Forest Service that various permits are needed.

These permits would include:

(2) Permits pursuant to Eagle County’s or

other Counties H.B.-1041 process.

Hence, the Forest Service merely acknowledged that it

had been “advised” by the County that, in the opinion of

the County, a 1041 permit was necessary. This certainly

falls far short of a federal requirement that such a local

permit be obtained.

Defendants also conveniently choose to ignore certain

significant facts. As previously indicated, the City’s pro-

ject is to be located entirely upon federal Forest Service

lands. The Forest Service Management Plan (Record Vol-

ume I, Exhibit A-11) specifically states that the White

River Nat.onal Forest is for multiple use. This is consistent

water quality can be characterized as an environmental concern,

water rights are an individual property interest in Colorado,

and protection thereof from alleged degradation is thus more

akin to land use control. Further, the “nuisance factors” refer-

enced in the Board’s findings have been historically charac-

terized as matters within the ambit of the local “zoning”

authority. See Robinson Brick Co. v. Luthi, 115 Colo. 106, 111, 169

P.2d 171 (1946); C&M Sand and Gravel v. Board of County Comm’rs,

673 P.2d 1013, 1017 (Colo. App. 1983). See also Finding III(A)(1),

(B)(1), Addendum 14 at p. 169, 170.

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247a

with the language of the Federal Land Policy Manage-

ment Act (“FLPMA”), 43 U.S.C. §1701, 1732 (1986), the

National Forest Management Act, 16 U.S.C. §1600 (1985),

et seq., the Organic Act of 1897, 16 U.S.C. §481 (1985), and

the Multiple Use Sustained Yield Act, 16 U.S.C. §528

(1985), et seg. Included within the uses encouraged by

each of these Acts is water resource development. For

example, the Organic Act specifically provides:

All waters within the boundaries of national

forests may be used for domestic, mining, mill-

ing, or irrigation purposes, under the laws of

the state wherein such national forests are situ-

ated or under the laws of the United States and

the rules and regulations established there-

under.

16 U.S.C. §481.13

Further, pursuant to federal requirements under the

National Environmental Policy Act (“NEPA”), 42 U.S.C.

§4321 (1977 and 1993 Supp.), et seq., the Forest Service

performed an environmental analysis which lead to a

number of public hearings, the submission of numerous

written comments, and the eventual issuance of a final

environmental impact statement (FEIS). (Record Volume

13 As noted in United States v. City and County of Denver, 656

P.2d 1, 23 (Colo. 1982):

The Supreme Court in United States v. New Mexico,

supra, emphasized that Congress intended to provide

large quantities of water for the economic develop-

ment of the West when it passed the Organic Act of

1897.

See also U.S. v. Jesse, 744 P.2d 491, 502 (Colo. 1987) (Organic Act

provides for and contemplates the diversion of water by private

parties within the national forests in accordance with state law).

248a

I, Exhibit A-1.) Eagle County and the other defendants

took an active role in this environmental review process,

Addendum 35, pp. 393-395; Record Volume I, Exhibit

A-1), and had numerous opportunities to place their con-

cerns of record in order to have them addressed by the

federal agencies. 4

Defendants also ignore the fact that the Cities

obtained a FLPMA permit (Addendum 11) which sets

forth numerous mitigation measures designed to ensure

that the project was constructed and operated in an envi-

ronmentally sound fashion. In addition, the Cities

applied for and received a §404 permit (33 U.S.C. §1344

(1986)) from the Corps of Engineers. Addendum 12. This

permit embodied conditions addressing various environ-

mental issues including aesthetics, water quality, and

wetlands preservation. Supplementing the “no loss” of

wetlands provision, was a requirement that any mitiga-

tion utilized in conjunction with the wetlands mitigation

plan “shall not cause more than minimal visual intrusion

to the wilderness area, and shall not have significant

environmental impacts.” Addendum 12, p. 127. The

14 The County did note an indication of “deficiencies in the

Environmental Impact Statement,” (Addendum 14, p.168), with-

out tying this finding to any local criteria. If the County was

dissatisfied with the EIS process, it could have sought review

thereof. It failed to do so. Further, to the extent the County and

the remaining defendants claim that the federal agencies used

different standards than applied by the County, the only appli-

cable county criteria references “no significant deterioration of

wetlands.” To argue that the Forest Service and Corps of Engi-

neers did not address this basic issue under their extensive

federal regulatory requirements is patently ridiculous. See, e.g.,

33 C.F.R. Part 320, 40 C.F.R. Part 230.

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249a

Corps specifically found the permitted alternative to be

consistent with §§101, 401 and 404 of the Clean Water

Act, NEPA, the Endangered Species Act, the Fish and

Wildlife Coordination Act, policies concerning scenic and

recreational values, and policies concerning energy con-

servation. Addendum 12, pp. 133-134.

Nevertheless, despite the above approvals and the

numerous protective conditions contained therein,

despite defendants’ participation in the federal process,

and despite the location of the project on federal lands,

the requested local land use permits were denied.'° With

the above factual background in mind, a closer analysis

of the decisions in Brubaker and Granite Rock, supra, is

required.

(a) The district court correctly relied upon

the Brubaker decision.

In Brubaker, plaintiffs sought from the County Board

a special use permit for purposes of conducting certain

mining operations which had previously received federal

approval. The County denied the application. The Colo-

rado Supreme Court held that such a denial was pre-

15 Regulations adopted under C.R.S. §24-65.1-101, et seq.

(1990), have been characterized by the legislature as “land use

planning” tools and codified as part of the land use planning

statutes. See C.R.S. §24-65.1-101(1)(c) (1990). In City and County

of Denver v. Bergland, 517 F.Supp. 155, 174, n. 18 (D. Colo. 1981),

even the County seemingly admitted that its 1041 regulations

fell within the category of “police power regulations involving

land use, construction permits and zoning,” i.e., land use regu-

lation.

250a

empted by federal law, as it stood as an “obstacle to the

accomplishment and execution of the full purposes and

objectives of Congress.” Brubaker, 652 P.2d at 1055. Simply

stated, “[S]uch a veto power is not consistent with the

Supremacy Clause.” (Emphasis added.) Id. at 1056. In so

holding, the Brubaker court cited with approval the deci-

sion of the Ninth Circuit in Ventura County v. Gulf Oil

Corp., 601 F.2d 1080 (9th Cir. 1979) aff’d mem 445 U.S. 947

(1980), wherein Gulf sought to secure from the County an

open space permit prior to undertaking its mineral explo-

ration activities on federal lands within the County. Id. at

1056. In holding that the governing federal legislation

pre-empted such County regulation due to an impermis-

sible conflict between the two bodies of law, the Ninth

Circuit observed:

Despite this extensive federal scheme reflecting

concern for the local environment as well as

development of the nation’s resources, Ventura

demands a right of final approval. Ventura seeks

to prohibit further activity by Gulf until it

secures an Open Space Use Permit which may

be issued on whatever conditions Ventura deter-

mines appropriate, or which may never be

issued at all. The federal Government has autho-

rized a specific use of federal lands, and Ventura

cannot prohibit that use, either temporarily or

permanently, in an attempt to substitute its

judgment for that of Congress.

Ventura County, 601 F.2d at 1084. See also: Federal Power

Comm'n v. Oregon, 349 U.S. 435 (1955).16

16 The Ventura court further noted:

As Ventura recognized in filing its second amended

complaint, the National Environmental Protection

25la

Similarly, in the present instance, the County seeks to

prohibit the federally authorized activity. Just as the test

drilling in Brubaker was essential to establishing the min-

ing claims in question therein, so too is the Cities’ con-

struction of its diversion facilities essential to the exercise

of its federal easement rights and its decreed water

rights.

Finally, the County simply misstates the facts in Bru-

baker when it alleges that “El Paso County attempted to

categorically prohibit any drilling activity on federal

land.” Co. Br. at p. 27.

The appellants then applied to the Board for a

special use permit authorizing drilling of the

proposed test holes in El Paso County. El Paso

County considered the permit necessary

because the appellant’s mining claims in the

County are located within an A-2 Agricultural

zoning district, and “mineral and natural

resources extraction” is a permitted use only: if

such a permit is obtained. (Emphasis added.)

Brubaker, 652 P.2d at 1053. In further explanation of its

decision, the Brubaker court subsequently stated:

BAAS SIT ERI PANS RUG ION IS Blas we sa ot ay aes BIS ate een

In the present case, we are not presented with a

challenge to the facial validity of the El Paso

Act (“NEPA”) and the guidelines, regulations and

Executive Orders issued in pursuance of that Act,

mandate extensive federal consideration and federal-

local cooperation concerning the local, environmental

impact of federal action under the Mineral Lands

Leasing Act. If federal officials fail to comply with

these requirements, Ventura has a remedy against

those officials.

Id. at 1086.

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252a

zoning ordinances or with the question of

whether the appellants could be required to

apply for a permit under those ordinances.

Rather, we are faced with the issue reserved by

the Court in State ex rel Andrus v. Click, supra.

That is, we consider a specific application of the

local regulations so as to prohibit activities autho-

rized by federal legislation. (Emphasis added.)

Id. at 1059.17 Thus, there was no “blanket” prohibition in

Brubaker, but rather a fact specific prohibition evidenced

by a permit denial.

(b) Granite Rock Supports a Finding of Pre-

Emption.

The United States Supreme Court decision in Califor-

nia Coastal Commission v. Granite Rock, 480 U.S. 572 (1987)

is consistent with the above observations, and defen-

dants’ reliance thereon is misplaced. Although the

sharply divided court ruled that reasonable state environ-

mental regulations covering Forest Service land were not

per se pre-empted by federal law, the five-to-four major-

ity described this holding as a “narrow” rejection of a

“purely facial challenge.” Id. at 580, 593. Granite Rock

had not even applied for a state permit, arguing that

there was no possible set of conditions that the state

could place on its permit which would not conflict with

federal law. It therefore had “ . . . lost the possibility of

17 The issue reserved in Andrus v. Click, 97 Id 791, 554 P.2d

969 (1976), as described by the Brubaker court, involved “ . . . the

question of whether the state could deny such a permit” for

activities on federal land. Id. at 1059.

PAIL EE SIAR TAN SRS NDI ANEE SAR FEY. G5

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253a

making this argument [prohibition] in this litigation.” Id.

at 588.1 The Court stressed that the state was not asking

Granite Rock to comply with a local land use plan or

zoning ordinance, but rather with the regulations of a

state commission concerned over “compliance with the

environmental criteria in the Coastal Act itself.” (Emphasis

added.) Id. at 585, n. 2.

Further, the Granite Rock Court accepted the state’s

assertion that it did not seek to prohibit the activity, but

only to regulate the environmental aspects thereof. Id. at

587. However, since Granite Rock had not applied for the

state permit, it was unable to show the conditions which

the state would have placed upon its permit. Given the

“as yet unidentifiable conflicts with the federal scheme”

and the “barren record,” the court cautiously accepted

the possibility that the state might impose reasonable envi-

ronmental controls. (Emphasis added.) Id. at 594.19

18 Significantly, the majority decision assumed without

deciding, an assumption deemed “correct” in the dissent by

Justices White and Scalia and consistent with the decision in

Ventura County, that “the combination of the NFMA and the

FLPMA pre-empt the extension of state land use plans .. . in

national forest lands.” Granite Rock, 480 U.S. at 585, 612.

19 Even environmental concerns, assuming they can be

addressed by the local entity, cannot be of a general or generic

character or they will run afoul of the pre-emption doctrine. As

stated in Ogden Environmental Services v. City of San Diego, 687

F.Supp. 1436, 1448 (S.D. Ca. 1988):

Allowing the local governments to impose a permit

requirement and then to deny the permit on

unspecified environmental grounds, without articu-

lating specific health or safety concerns or setting

forth particular environmental requirements which

the facility must meet, surely frustrates congressional

254a

Nevertheless, the Court cautioned that there could be

“state environmental regulation so severe that a particu-

lar land use would become commercially impractica-

ble.”29 Id. at 587.

The facts of the present case are distinguishable from

those found in Granite Rock, and are on point with those

in Brubaker. The County does seek to prohibit the activity

in question. Unlike Granite Rock, the Cities applied for a

local permit and are not making a facial challenge. There

is now a record demonstrating the reasons for rejection

by the local authority, i.e., a record establishing an irrec-

oncilable conflict. Further, this court is now faced with a

situation wherein a local entity is attempting to enforce

what has been determined by the Tenth Circuit to be local

regulations. City and County of Denver v. Bergland, 695 F.2d

465, 485 (10th Cir. 1982).21 Thus, the state regulatory

intent behind the whole research, development, and

demonstration program.

Just such an inadequate articulation is in evidence in this case.

See also Ogden Environmental Services v. City of San Diego, 692

F.Supp. 1222 (S.D. Ca. 1988).

20 To the extent the County and the Fund now argue that

the federal mitigation plan was inadequate, despite its opera-

tional flow release option, there is, in the minds of these defen-

dants, no reasonable environmental regulation available for this

project configuration. That is to say, any regulation would be so

severe as to amount to a prohibition, the very exception to

allowable environmental regulation noted in Granite Rock, 480

U.S. at 587.

21 In reaching its conclusion that H.B. 1041 requirements were

“local” in nature, the Tenth Circuit cited with approval the Ninth

Circuit decision in Columbia Basin Land Protection Association v. Schle-

singer, 643 F.2d 585 (9th Cir. 1981), wherein the Court found that

nN ———

255a

scheme required by Granite Rock is absent. Granite Rock,

480 U.S. at 583. Finally, even if the regulations in question

were being imposed by the state, they would not pass the

“reasonableness” test enunciated in Granite Rock. The

identification of any shift in wetland species composition ~

as an unacceptable “significant deterioration” was clearly

unreasonable, as were any findings of nuisance or

adverse impacts on aquatic life. See pp. 39-40, infra.?2

The situation in the present case is the very result

feared by the dissenting opinion in Granite Rock, i.e.,

“duplicative” processes wherein a local regulator has

given itself final authority to determine how federal

lands are to be used. Id. at 605. Indeed, Justice Scalia ends

his opinion with the following observation:

If environmental control is, as California now

assures us, its limited objective in this case, then

it must simply achieve that objective by means other

than a land use control scheme. If and when it does

sO, we may have occasion to decide (as we need

not today) whether state environmental controls

are also pre-empted. More likely, however, the

question will not arise in the future, as it has not

arisen in the past, because the federal govern-

ment’s voluntary accommodation of state environ-

mental concerns — an accommodation that could not

occur here only because California neglected to par-

ticipate in the proceedings. (Emphasis added.)

“state” standards do not include “local” requirements. See also Citi-

zens for a Better Henderson v. Hodel, 768 F.2d 1051, 1055 (9th Cir. 1985).

22 It should also be noted that in Granite Rock the regulating

authority had not participated in the federal permit process.

256a

Id. at 614. Despite the fact that the above-referenced

“accommodation” occurred in this instance through the

federal permitting processes, the County persists in its

attempt to impose its own controls through its local land

use plan. That attempt cannot be sustained.

* * +

E. THE CITIES HAVE STANDING TO ASSERT

DUE PROCESS RIGHTS.

The Cities were required to apply to the County for

permits in the same manner as any property owner

because the Cities are expressly defined as “persons”

within the meaning of the enabling legislation. C.R.S.

§§24-65.1-102(6) and 24-65.1-501(1)(a) (1990). Grand

County, 782 P.2d at 764. As such “persons,” the Cities

are entitled to the same legislative assurance that their

23 The County also misstates the holding of the Court in

Friends of the Earth v. U.S. Navy, 841 F.2d 927, 936 (9th Cir. 1988),

when it argues that “the Court rejected the Navy’s argument,

finding that the state act’s combination of land use and environ-

mental regulations did not mandate any particular use of the

land . . . and was therefore not pre-empted.” Co. Br. at 29.

Rather, the court rejected application of that portion of the regu-

lation dealing with land use, finding that it indeed was pre-

empted and merely allowed the application of “environmental

regulations.” Id. at 936.

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257a

property rights will be protected. C.R.S.

§24-65.1-106(1)(a) (1990) provides “[nJothing in this arti-

cle shall be construed as . . . diminishing the rights of

owners of property as provided by the state Constitution

or the Constitution of the United States.” The constitu-

tional rights of owners include the rights to just compen-

sation when land use regulations are used to accomplish

a “taking” of property. Keysione Bituminous Coal Associa-

tion v. DeBenedictis 94 L.Ed.2d 472, 107 S.Ct. 1232 (1987).

Nevertheless, the County now comes full circle and

argues that the Cities are not entitled to their Fifth or

Fourteenth Amendment rights because they are not “per-

sons.”

The Defendants again rely upon a line of cases which

are designed to keep the courts out of intermural dis-

putes between political subdivisions of the same state.

Most of the cases cited by Defendants in support of the

“per se” rule involve some sort of taxation issue; all of the

cases involve disputes over the state allocation of politi-

cal power. However, the instant case does not involve an

internal dispute. It concerns, instead, the regulatory tak-

ing of the property interests of these statutory “persons”.

Defendants ignore blackletter law cited at pages 28

and 29 of the Cities’ Opening Brief concerning a munici-

pality’s right to just compensation, claiming that said

6° The gravamen of the Cities’ Sixth and Twelfth Causes of

Action is that the Cities, as owners of decreed water rights, have

been deprived of those rights by a regulatory taking. The water

rights in question were not allocated to the Cities by the State.

Rather, these property rights were purchased by the Plaintiffs as

home rule cities.

258a

authority applies only to “formal condemnation cases.”

However, if municipalities are absolutely barred from

asserting substantive due process or regulatory taking

claims as the Defendants contend, there would be no

reason for any state to institute such “formal condemna-

tion” proceedings. The state could simply create regula-

tions which accomplish the same goal. The Supreme

Court has held that even

Congress could not, without making provision

for payment of compensation, pass a law

depriving a State of land vested in it by the

Constitution. Such a law . . . would constitute a

taking of the State’s property without just com-

pensation, in violation of the Fifth Amendment.

Block v. North Dakota, 461 U.S. 273, 291, 856 (1983).

The absurdity of the “per se” rule has gradually lead

to the more rational line of cases cited at pp. 21-23 of

Plaintiffs’ Brief. The Defendants have attempted to mis-

characterize these decisions, but the referenced opinions

continue to be offered as authority that “judicial support

for this [per se] rule may be waning with time.” Amato v.

Wilents, 952 F.2d 742, 754-755 (3rd Cir. 1991).

Defendants fall back on City of Trenton v. New Jersey,

262 U.S. 182 (1923), claiming that the facts of Trenton are

“very similar” to the instant case. Co. Br. at 41, n. 15.

However, Trenton—involved disputed taxation issues

rather than a regulatory taking. Moreover, Trenton is

based upon a “creature of the state” rationale. As a result,

it did not apply when another New Jersey municipality

was allowed to use the Fourteenth Amendment to chal-

lenge the zoning of an adjoining New York municipality.

EEE EE

259a

Town of River Vale v. Town of Orangetown, 403 F.2d 684 (2nd

Cir. 1968).

The Colorado Supreme Court cited the River Vale case

in Board of County Comm'rs v. City of Thornton, 629 P.2d

605, 611 (1981), where the Court held that Thornton, as a

home rule city and as the owner of property adjacent to

the zoned property, had standing to challenge an Adams

County zoning plan. The Court specifically held that “we

find no reason in policy to deny the landowner City the

same right to challenge illegal zoning as we have

accorded private landowners.” Id. at 610, citing River Vale

in recognition of “a due process dimension.” Id. at 611.

Further, the Supreme Court has cautioned that the

line of cases relied upon by Defendants are limited to

their facts. Gomillion v. Lightfoot, 364 U.S. 339, 343 (1960).

The Court warned that a “correct reading of the seem-

ingly unconfined dicta” of these cases does not allow the

state “plenary power to manipulate in every conceivable

way, for every conceivable purpose, the affairs of its

municipal corporations” and that “a state legislature may

not be omnipotent even as to the disposition of some

types of property owned by municipal corporations.” Id.

at 343 and 344.

Defendants also place a great deal of reliance upon a

footnote to Orchard City v. Delta County Comm'rs, 751 P.2d

1003, 1006 (Colo. 1988), another taxation case. Orchard

City, however, serves to illustrate the need to focus the

standing question upon the circumstances of the case,

rather than resorting to the rubric of a “per se” rule. First,

Orchard City addressed the distribution of tax revenues

260a

rather than a City’s right to protect its purchased prop-

erty rights. Second, Orchard City is not identified as a

home rule municipality. Contra: Board of County Comm’rs

v. City of Thornton, supra. Finally, since it was not neces-

sary for the court to address the equal protection argu-

ment, this footnote is clearly dicta.

The Cities are not asking the court to apply a

mechanical standing argument, but rather seek the same

standing as any property owner, consistent with their.

statutory designation as “persons.” The County cannot

deprive these statutory persons of their property rights

by irrelevant criticism of the proprietary /governmental

distinction. The County’s reliance on the sweeping state-

ments in Trenton clearly go beyond the scope of the

taxation issues in that case. See Gomillion, supra.

The County also vainly argues that the Cities are not

“persons” under 42 U.S.C. §1983, ignoring the more

recent decision in Santiago Collazo v. Franqui Acosta, 721

F.Supp. 385 (D. Puerto Rico 1989) and relying upon City of

Safety Harbor v. Birchfield, 529 F.2d 1251 (5th Cir. 1976).

However, as the Santiago court explains, Safety Harbor

relied upon Monroe v. Pape, 365 U.S. 167, (1961), which

was overruled in Monell v. Department of Social Services,

66 Defendants attempt to avoid standing for home rule cities by

citing Village of Arlington Heights v. Regional Transportation Auth., 653

F.2d 1149 (7th Cir. 1981). However, home rule municipalities estab-

lished under the Colorado Constitution stand on a different footing.

They have standing even in cases involving taxation issues. Denver

Urban Renewal Auth. v. Byrne, 618 P.2d 1374 (Colo. 1980). The state

Supreme Court recently reiterated this home rule distinction. Mesa

Verde Co. v. Montazuma County, 831 P.2d 482, 485 (Colo. 1992).

261la

436 U.S. 658, 690 (1978). Monroe had held that munici-

palities were not “persons” liable under §1983. However,

once Monroe was overruled, it became a strained analysis

to hold that a municipal corporation was a “person”

within one clause of §1983 (1981 and 1993 Supp.), but not

a “person” within another clause of the same statute.

South Macomb Disposal Auth. v. Township of Washington,

790 F.2d 500, 503 (6th Cir. 1986).

It is just as strained an analysis for the trial court to

hold that the Cities are defined as “persons” by the

statute (and therefore are not entitled to the exemptions

ordinarily provided to home rule municipalities), while

simultaneously depriving the Cities of the rights which

they would clearly enjoy as “persons”, if they were

treated as private property owners rather than munici-

palities. Since the enabling legislation describes the Cities

as “persons” and requires the Cities to apply for a permit,

the Cities must be afforded the same rights expressly

granted to all property owners affected by this statute.

C.R.S. §24-65.1-501(1)(a) (1990).

+ * *

262a

COLORADO COURT OF APPEALS

No. 93CA0386

No. 93CA0412

PETITION FOR REHEARING

OF PLAINTIFFS-APPELLANTS

City of Colorado Springs and City of Aurora, Colorado,

municipal corporations,

Plaintiffs-Appellants and Cross-Appellees,

Vv.

The Board of County Commissioners of the County of

Eagle, State of Colorado; George A. Gates, Johnette Phil-

lips, James E. Johnson, Jr., in their official capacities as

individual members of said Board; The Board of County

Commissioners of the County of Eagle, in its capacity as

the permitting authority under §24-65-101 et seq., C.R.S.;

The Eagle County Planning Commission; Mark Donald-

son, Robert Tether, Arlene Quenon, Robert Morris,

Donald Price, in their official capacities as individual

members of said commission; The County of Eagle, State

of Colorado; Holy Cross Wilderness Defense Fund; and

Vail Valley Consolidated Water District,

Defendants-Appellees and Cross-Appellants.

263a

Appeal from the District Court of Eagle County

Honorable William L. Jones, Judge

No. 88CV142

Division III JUDGMENT AFFIRMED

Opinion by JUDGE DAVIDSON _IN PART, REVERSED

IN PART, AND CAUSE

Jones, and Rothenberg,

JJ., concur REMANDED WITH DIRECTIONS

Anderson, Gianunzio, Dude, Pifher & Lebel, P.C., Mark T.

Pifher, William Kelly Dude, Colorado Springs, Colorado,

for Plaintiffs-Appellants and Cross-Appellees

James R. Fritz, County Attorney, Eagle, Colorado; Holme

Roberts & Owen, L.L.C., Dennis J. Herman, Henry W.

Ipsen, Mary H. Stuart, Denver, Colorado for Defendants-

Appellees and Cross-Appellants The Board of County

Commissioners of the County of Eagle, State of Colorado;

George A. Gates, Johnette Phillips, James E. Johnson, Jr.;

The Board of County Commissioners of the County of

Eagle, State of Colorado; The Eagle County Planning

Commission; Mark Donaldson, Robert Tether, Arlene

Quenon, Robert Morris, Donald Price; The County of

Eagle, State of Colorado

Sierra Club Legal Defense Fund, Lori J. Potter, Denver,

Colorado; Land and Water Fund of the Rockies, Frances

M. Green, Boulder, Colorado.

* * *

3. The Court’s decision not to address the preemp-

tion cases (page 7) is inappropriate even under the

Court’s strained interpretation of state law. Even assum-

ing that the permit could be denied to a home rule

municipality under the terms of the state statute, the

preemption case law as cited in the briefs indicates that

though local entities may “regulate” environmental

264a

impacts, this is not a basis upon which to veto or deny

permits for federally approved projects located entirely

on federal lands. See Pl. Opening Br. at P. 10, Answer Br.

at pp. 14-20, 36; See e.g. Brubaker v. Board of County

Commissioners, 652 P.2d 1050, 1059 (Colo. 1982) citing

Andrus v Click, 97 Id. 791, 554 P.2d 969 (1976) (permit

denial constitutes prohibition of federally authorized

activity). Finally, the cities have asserted that the “nui-

sance” regulations are “land use” concerns and thus pre-

empted.

+ * *

17. With reference to the standing/due process

claims (pp. 28-32), the Court overlooks the fact that con-

stitutionally created home rule powers control over

enactments of the General Assembly even in matters of

statewide concern. See e.g. Denver v. Grand County, 782

P.2d at 762; City of Thornton, 194 Colo. at 535. Further, the

Court erroneously concludes that home rule munici-

palities are “creatures of the state.” The Supreme Court

has stated that “as a home rule city with its own constitu-

tional underpinning, Denver was not a political subdivi-

sion of the state. ... ” Mesa Verde County v. Montezuma

County, 831 P.2d 482, 485 (Colo. 1992). See also Pl. Open-

ing Br. at p. 25. The Court ignores black letter law that

municipalities are entitled to just compensation in such

circumstances. See Pl. Opening Br. at pp. 28-29 citing

Nichols on Eminent Domain and ALR.3d; See also 91

L.Ed.2d 582; Metagorda County v. Russell Law, 19 F.3d 215,

223 (5th Cir. 1994) (though the takings clause is couched

in terms of “private property,” it is recognized that the

clause also applies to “independently held and controlled

property of a state or of a local subdivision.”) The Cities

OO

265a

purchased these water rights in the free market, and they

cannot subsequently be taken without compensation. See

Worcester v. Worcester Consol. Street R. Co., 196 US. 539,

551 (1905). Finally, the Cities did not argue that the dicta

in Town of Orchard City was “eroded” by a case decided

seven years before (page 31), only that the City of Mon-

trose decision indicated state Supreme Court acceptance

of municipal use of the Fourteenth Amendment outside

of the “taxation” context.

7 * .

266a

SUPREME COURT, STATE OF COLORADO

CASE NO. 94 SC 765

COLORADO COURT OF APPEALS, CASE NOS.

93CA0386, 93CA0412 EAGLE COUNTY DISTRICT

COURT, CASE NO. 88CV142

PETITION FOR WRIT OF CERTIORARI

City of Colorado Springs and City of Aurora, Colorado,

municipal corporations,

Petitioners,

V.

The Board of County Commissioners of the County of

Eagle, State of Colorado; George A. Gates, Johnette Phil-

lips, James E. Johnson, Jr., in their official capacities as

individual members of said Board; The Board of County

Commissioners of the County of Eagle, in its capacity as

the permitting authority under §24-65101 et seq., C.R.S.;

The Eagle County Planning Commission; Mark Donald-

son, Robert Tether, Arlene Quenon, Robert Morris,

Donald Price, in their official capacities as individual

members of said commission; The County of Eagle, State

of Colorado; Holy Cross Wilderness Defense Fund; and

Vail Valley Consolidated Water District,

Respondents.

ANDERSON, GIANUNZIO,

DUDE, PIFHER & LEBEL, P.C.

Mark T. Pifher

104 South Cascade Avenue

Suite 204

Colorado Springs, CO 80903

(719) 632-3545

Attorneys for Petitioners

cava ee eee ae

267a

ISSUES PRESENTED FOR REVIEW

1. Did the Court of Appeals err in allowing a

county, under the Colorado Land Use Act, § 24-65.1-101 et

seq. 10B C.R.S. (1988 & Supp. 1994) (H.B. 1041), to veto a

municipal water project located on federal lands?

* + *

3. Did the Court of Appeals err in ruling that Colo-

rado home rule municipalities do not have standing to

pursue a claim for the regulatory taking of property

without just compensation?

* * *

Finally, even assuming that the actions of the county

did not run afoul of Article XX, Section 1, the doctrine of

federal preemption does not allow the county to veto a

permit of a federally approved project located entirely on

federal lands. See Brubaker v. Board of County Comm'rs, 652

P.2d 1050, 1059 (Colo. 1982), citing Andrus v. Click, 97

Colo. 791, 554 P.2d 969 (1976); California Coastal Comm'n v.

Granite Rock Co., 480 U.S. 572 (1987). The Court of

Appeals refused to even reach this

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Appendix — City of Colorado Springs v. Board of County Commissioners · 516 U.S. 1008 | Frix