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HomeMy WebLinkAbout2021CV30425 - Save The Poudre And No Pipe Dream Coporation V. Northern Colorado Water Conservancy District, Northern Integrated Supply Project Water Activity Enterprise, The City Of Fort Collins - 016 - First Amended Complaint Larimer County District Court 201 La Porte Ave, Suite 100 Fort Collins, CO 80521 SAVE THE POUDRE, and NO PIPE DREAM CORPORATION Plaintiffs v. NORTHERN COLORADO WATER CONSERVANCY DISTRICT, NORTHERN INTEGRATED SUPPLY PROJECT WATER ACTIVITY ENTERPRISE, THE CITY OF FORT COLLINS, a Colorado home rule city and municipal corporation, Defendants. COURT USE ONLY John M. Barth, Attorney at Law P.O. Box 409 Hygiene, CO 80533 (303) 774-8868 (fax and phone) barthlawoffice@gmail.com Counsel for Save the Poudre and No Pipe Dream Corp. Case Number: 21CV30425 Courtroom: 5B FIRST AMENDED COMPLAINT Plaintiffs Save the Poudre and No Pipe Dream Corporation bring this First Amended Complaint for declaratory relief pursuant to Colo.R.Civ.Pro. 57 and the Colorado Uniform Declaratory Judgments Law; and, in the alternative, for relief under Colo.R.Civ.Pro. 106(a)(4). DATE FILED: August 31, 2021 10:40 AM FILING ID: 631C0FDA58B55 CASE NUMBER: 2021CV30425 2 INTRODUCTION 1. This is a Complaint under Colo.R.Civ.Pro. 57 and the Colorado Uniform Declaratory Judgments Law seeking declaratory rulings and vacating the August 12, 2021 actions and adoption of Resolution D-1367-08-21 (“Resolution”) by the Northern Colorado Water Conservancy District (“District”) overturning the City of Fort Collins’ (“City”) denial of Northern Integrated Supply Project Water Activity Enterprise’s (“Enterprise”) Site Plan Advisory Review (“SPAR”) land use application for aspects of the Northern Integrated Supply Project (“NISP”). Exhibit 1 hereto (Resolution D-1367- 08-21 “Resolution”). In the alternative, Plaintiffs challenge the District’s August 12, 2021 actions and adoption of the Resolution pursuant to Colo.R.Civ.Pro. 106(a)(4) and likewise seek a ruling vacating the District’s actions. JURISDICTION AND VENUE 2. This Court has subject matter jurisdiction in this action as provided in Colo.R.Civ.Pro. 57 and the Uniform Declaratory Judgment Law, C.R.S. §13-51-101 et seq. Alternatively, this Court has subject matter jurisdiction pursuant to Colo.R.Civ.Pro. 106(a)(4). 3. Venue is proper before this Court pursuant to Colo.R.Civ.Pro. § 98(a) because this is an action affecting real property in Larimer County, Colorado. 4. Plaintiffs’ members live and own properties in close proximity to the City of Fort Collins’ owned Natural Areas that will be adversely affected by the District’s August 12, 2021 actions and Resolution. Plaintiffs’ members pay taxes and fees to the City of Fort Collins that help to fund the purchase, construction, and maintenance of the Natural Areas. 3 5. Plaintiffs’ members recreate in and along the Cache la Poudre River and in the City of Fort Collins Natural Areas that would be adversely impacted by the Resolution. 6. Plaintiffs’ members are taxpayers and/or ratepayers to the City of Fort Collins. Fort Collins taxpayers have invested tens of millions of dollars to conserve unmatched ecological resources running through the heart of the City, including the Natural Areas that would be damaged by the Resolution. Exhibit 2, p. 1. Fort Collins taxpayers, including Plaintiffs’ members, believed that the Natural Areas would be protected in perpetuity. Exhibit 2, p. 1. 7. The City of Fort Collins’ own Land Conservation and Stewardship Board, within the City of Fort Collins Natural Areas Department, found on June 10, 2020 that NISP’s removal of water from the river, through the Poudre River Intake, would further drain and degrade the immediate and downstream Natural Areas. Exhibit 2, p. 1. Hundred-year old trees will dry up, understory plants will shift to more drought tolerant species, biodiversity will decrease, and forests and wetland dependent animals will disappear. Exhibit 2, p. 1. 8. NISP would adversely impact the Plaintiffs’ members by imposing unwanted noise, traffic, dust, reduced recreational use and enjoyment of the Natural Areas, loss of ecological value of the Natural Areas, increased flooding on Natural Areas, aesthetic injury, and waste of taxpayer invested money. 9. Plaintiffs have standing to bring these claims because Plaintiffs and/or their members will be adversely impacted by the Resolution including but not limited to: noise, air pollution, traffic, water pollution, City property damage, adverse possession of 4 City property, diminution of City property value, loss of recreational use, environmental interests, and enjoyment thereof, and waste of City of Fort Collins tax dollars paid by Plaintiffs’ members. Plaintiffs and their members also assert procedural standing by seeking a ruling the District’s August 12, 20021 hearing violated their due process rights to a fair administrative proceeding because there was no procedural rules or substantive standards or criteria governing the District’s actions. Exhibit 3 (comment letter). 10. The injuries complained of by Plaintiffs can be remedied by an order from this Court declaring that the Resolution and the District’s August 12, 2021 actions were illegal, in excess of its jurisdiction and authority, and unconstitutional; and, vacating said actions. THE PARTIES 11. Northern Colorado Water Conservancy District is a water conservancy district organized pursuant to C.R.S. §§ 37-45-101 et seq. The District owns the Defendant Enterprise business. Exhibit 1, p. 1. 12. Defendant Northern Integrated Supply Project Water Activity Enterprise is a business owned by the District, is an “enterprise” within the meaning of Article X, Section 20(2)(d) of the Colorado Constitution, and is the SPAR land use permit applicant. Exhibit 4 (SPAR application). 13. Defendant City of Fort Collins is a home rule city and municipal corporation that denied the Enterprise’s SPAR land use application on June 30, 2021. Exhibit 5. As per Colo.R.Civ.Pro. 57(j), the City is a party with an interest affected by the declaration. 14. Plaintiff Save the Poudre (“STP”) is a Colorado Non Profit membership 5 corporation based in Larimer County, Colorado. STP’s mission is to protect and restore the Cache la Poudre River of Northern Colorado. 15. Plaintiff No Pipe Dream Corporation (“NPD”) is a Colorado Non Profit membership corporation based in Larimer County, Colorado. NPD’s purpose is to protect citizens from the intense adverse impacts of multiple proposed water pipelines and reservoir projects in Larimer County, including but not limited to NISP. STATEMENT OF FACTS 16. NISP is a raw water development and pipeline project proposed by the Enterprise through its SPAR land use application to the City. Exhibit 4. 17. NISP is a municipal water project involving, inter alia, the construction and perpetual operation of a new river diversion structure, known as the Poudre River Intake, on the Cache la Poudre River that would be located on parcels in the City of Fort Collins owned Homestead Natural Area. NISP also involves, inter alia, the construction and perpetual operation of a related raw water pipeline to be located on parcels in part in the City of Fort Collins’ owned Riverbend Ponds Natural Area. The Poudre River Intake and the above-referenced water pipeline would both be constructed on land within the City of Fort Collins. Exhibit 6, p. 1. 18. The proposed Poudre River Intake would be located near the intersection of South Lemay Avenue and East Mulberry Street, Fort Collins, in the active river channel and the associated riparian zone in the City of Fort Collins Homestead Natural Area property. Exhibit 7, p. 5. 19. The Homestead Natural Area was created and funded, at least in part, by City of Fort Collins taxpayers. Exhibit 2. 6 20. The Homestead Natural Area is sensitive to disturbance and is an important public use area with established access paths. Exhibit 7, p. 5. 21. The purpose of the Poudre River Intake is to divert water from the Cache la Poudre River and eventually funnel the water to the water pipeline for transport to treatment and distribution facilities east of I-25. Exhibit 7, p. 3. 22. When operational, the Poudre River Intake would divert a significant percentage of the flows in the Cache la Poudre River, thus reducing downstream flows. Exhibit 7, p. 3. 23. Northern does not own or operate the parcels or property upon which the Poudre River Intake would be located. Exhibit 8. 24. On April 16, 2020 the Fort Collins City Manager informed the Fort Collins City Council of “Northern Water’s need to acquire real property rights on City- owned land and in the City right-of-way near the intersection of Lemay Avenue and Mulberry Street, where Northern Water would redivert NISP water from the Cache la Poudre River.” Exhibit 9, p. 4. As of that date “[t]he City and Northern Water have not yet begun those discussions.” Id. “Any acquisition of real property rights for NISP on City-owned land would require City Council approval.” Id. 25. Under City of Fort Collins Land Use Code (“LUC” or “Code”) Section 2.1.3(E)(1), the SPAR land use process only applies to “parcels owned or operated” by the appropriate permit applicant. Exhibit 10. 26. As of August 12, 2021, neither the District nor the Enterprise owned or operated the parcels of property upon which the Poudre River Intake would be located. 7 27. The District/Enterprise also propose to construct a portion of the NISP water pipeline in the City of Fort Collins’ owned Riverbend Ponds Natural Area. 28. Riverbend Ponds Natural Area is located downstream of the proposed Poudre River Intake. Exhibit 11. 29. Riverbend Ponds Natural Area was created and funded, at least in part, by City of Fort Collins taxpayers. Exhibit 2. 30. The City’s June 10, 2011 Cache la Poudre River Natural Areas Management Plan Update (“Management Plan”) includes the Riverbend Ponds Natural Area. The Management Plan includes policies that “provide adequate instream flows to maintain the ecological functionality, recreational, and scenic values of the Cache la Poudre River through Fort Collins” (Policy ENV 24.5). The Management Plan also includes a policy to maintain natural area protection buffers “of three hundred (300) feet wide” along both banks of the Poudre River to protect natural features and scenic qualities…” (Policy ENV 24.3). Exhibit 12, p. 3 (Cache la Poudre River Natural Areas Management Plan Update). 31. Under LUC Section 2.1.3(E)(1), the SPAR land use process only applies to “parcels owned or operated” by the appropriate permit applicant. Exhibit 10. 32. As of August 12. 2021, neither the District nor the Enterprise owned or operated the parcels of property in the Riverbend Ponds Natural Area where the proposed water pipeline would be located. 33. The Fort Collins City Council must approve any transfer of City of Fort Collins parcels, land, or property rights for construction of the Poudre River Intake and/or water pipeline. Exhibit 9, p. 4. 8 34. To date, the Fort Collins City Council has not approved any transfer of any of its property or property rights that would be required for construction and operation of the Poudre River Intake or water pipeline in the Natural Areas. 35. The Fort Collins City Council could deny any voluntary transfer of property or property rights needed for the construction and operation of the Poudre River Intake or the water pipeline in the Natural Areas. 36. The proposed Poudre River Intake and water pipeline would be entirely new structures and are not improvements to any existing public building or structure. 37. On or about May 5, 2021, the Enterprise applied to the City for a Site Plan Advisory Review land use approval for portions of NISP known as the Poudre River Intake and Pipeline. Exhibit 4. 38. On June 30, 2021, the City Planning and Zoning Commission denied the Enterprise’s SPAR land use application. Exhibit 5. 39. On August 12, 2021, the District’s Board of Directors held a hearing at which it adopted Resolution D-1367-08-21 purportedly overturning the City’s denial of the Enterprise’s SPAR land use application pursuant to C.R.S. § 31-23-209. 40. The Resolution purportedly approves “a site specific development plan” pursuant to C.R.S. § 24-68-101 et seq. Exhibit 1, p. 2, ¶ 4. 41. C.R.S. § 31-23-209 does not grant jurisdiction or authority to the District to approve a “site specific development plan” to its own government-owned Enterprise business. 9 42. C.R.S. § 24-68-101 et seq. does not grant jurisdiction or authority to the District to approve a “site specific development plan” to its own government-owned Enterprise business. 43. C.R.S. § 24-68-101 et seq.is known as the Vested Rights Act. 44. The Vested Rights Act allows a local government to grant a vested right to a developer associated with an approved site specific development plan following notice and public hearing. C.R.S. §24-68-103(1)(c). 45. The Resolution purports to grant a vested right, “as provided in C.R.S. 24- 68-101, et seq.,” to the Enterprise for “construction of the Poudre River Intake and Pipeline…” Exhibit 1, p. 2, ¶¶ 3 & 4. 46. The City has not approved a site specific development plan for the projects proposed in the Enterprise’s SPAR application. 47. The City denied the Enterprise’s SPAR application. 48. C.R.S. § 24-68-101 et seq, does not grant jurisdiction or authority allowing the District to approve a “vested right” to its own government-owned Enterprise business. 49. C.R.S. § 31-23-209 does not grant jurisdiction or authority allowing the District to approve a “vested right” to its own government-owned Enterprise business. 50. Prior to the August 12, 2021 hearing, the District had not promulgated or adopted any generally applicable administrative procedures that would govern the hearing. 10 51. Prior to the August 12, 2021 hearing, the District had not promulgated or adopted any generally applicable administrative standards or criteria that would govern the Board’s substantive action in overturning the SPAR permit denial by the City. 52. C.R.S. § 31-23-209 states “the planning commission’s disapproval may be overruled by said governmental body by a vote of not less than two-thirds of its membership.” 53. C.R.S. § 31-23-209 does not contain administrative procedural requirements governing a vote to overturn a planning commission’s SPAR disapproval. 54. C.R.S. § 31-23-209 does not contain administrative standards or criteria governing to a vote to overturn a planning commission’s SPAR disapproval. 55. C.R.S. § 31-23-209 requires that the SPAR application “submission to the commission shall be by the governmental body….” 56. The District is the governmental body with authorization or financing of NISP. 57. The District did not submit the SPAR application to the City and the Planning & Zoning Commission. The Enterprise submitted the SPAR application to the City and Planning and Zoning Commission. Exhibit 4. CLAIM FOR RELIEF 1 (Request for Declaratory and Injunctive Relief Under Rule 57) 58. The Plaintiffs incorporate all of the foregoing allegations as if set forth herein. 59. A controversy exists between the parties as to whether the District may overturn the City’s disapproval of the Enterprise’s SPAR land use application because: a) a controversy exists as to whether the District had the legal authority and 11 jurisdiction under C.R.S. § 31-23-209 to overturn the City’s disapproval of the Enterprise’s SPAR land application; b) a controversy exists as to whether the District, as a “governmental body,” must make the SPAR permit application “submission to the commission,” rather than its business “Enterprise” as required by C.R.S. § 31-23-209. c) a controversy exists as to whether the District has the legal authority under C.R.S. § 31-23-209, or C.R.S. § 24-68-101 et seq, to approve “a site specific development plan” for the Enterprise, as purportedly occurred in the Resolution and the District’s actions of August 12, 2021. Exhibit 1, p. 2, ¶ 3 (Resolution). d) a controversy exists as to whether the District has the legal authority under C.R.S. § 31-23-209, or C.R.S. § 24-68-101 et seq, to approve the “construction of the Poudre River Intake and Pipeline” by the Enterprise as purportedly occurred by the Resolution and the District’s actions of August 12, 2021. Exhibit 1, p. 2, ¶ 4 (Resolution). e) a controversy exists as to whether the District has the legal authority to grant its Enterprise a “vested right” pursuant to “C.R.S. § 24-68-101 et seq.” (“Vested Rights Act”), or C.R.S. § 31-23-209, to construct the Poudre River Intake and/or Pipeline as purportedly occurred by the Resolution and the District’s actions on August 12, 2021. Exhibit 1, p. 2, ¶ 3 (Resolution). f) a controversy exists regarding whether the District and/or the Enterprise are entitled to proceed under SPAR and/or C.R.S. § 31-23-209 because they did not “own or operate” the parcels upon which the construction of the Poudre River Intake and/or Pipeline would occur as required by the City Code Section 2.1.3(E)(1); 12 g) a controversy exists because each and every Board member of the District had an unconstitutional conflict of interest when they voted to approve the Resolution because the Enterprise is a “business” owned by the District itself. Exhibit 1, p. 1. Tumey v. Ohio, 273 U.S. 510, 523 (2000); Caperton v. A.T. Massey Coal Co., Inc., 556 U.S. 868, 887 (2009); In re Murchison, 349 U.S. 133, 135 (1955)(the Due Process Clause prohibits a judge from acting as “a judge in his own case”); City of Manassa v. Ruff, 235 P.3d 1051, 1056-57 (Colo. 2010); and, Colorado Constitution, Article XXIX(1)(c). h) a controversy exists as to whether the District committed an “as applied” violation of Plaintiffs’ and/or their members’ due process rights guaranteed by the Colorado Constitution when it approved the Resolution without previously adopting any procedural regulations governing the proceedings and without previously adopting any standards or criteria governing a decision to overturn the City’s disapproval of the Enterprise’s SPAR land use application. People v. Maxwell, 401 P.3d 518, 520 (Colo.App. 2017); Sherman v. Colorado Springs Planning Commission, 763 P.2d 292 (1988). i) a controversy exists as to whether C.R.S. § 31-23-209 is facially unconstitutional and/or void for vagueness because it fails to prescribe any due process procedures, standards, or criteria to be applied in an SPAR overturn proceeding and thus violates the Colorado Constitution by allowing the District to make arbitrary, subjective, and uneven treatment of due process rights. People v. Nissen, 650 P.2d 547 (Colo. 1982). 60. For the reasons stated herein, Plaintiffs request a declaration from this Court vacating the Resolution and the District’s actions on August 12, 2021; declaring that the Resolution and District actions were illegal and/or in excess of authority and/or 13 jurisdiction; and/or declaring the actions unconstitutional as applied. Plaintiffs also request a declaration that C.R.S. § 31-23-209 is facially unconstitutional by virtue of the statute being void for vagueness by lacking any procedures, standards, or criteria upon which to judge the Resolution and/or District’s August 12, 2021 actions. 61. A judgment or decree by the Court, if rendered or entered on these Rule 57 issues, would end the uncertainty, insecurity, and controversy with respect to the rights, status, or other legal relations between the parties and the issues identified in the paragraphs above. 62. Plaintiffs, and/or their members have suffered and will continue to suffer harm as a result of the Resolution and District’s August 12, 2021 actions because construction and operation of the Poudre River Intake and pipeline will adversely affect the recreational, ecological, and taxpayer interests identifies above. 63. Plaintiffs have no other plain, speedy, or adequate remedy provided by law. CLAIM FOR RELIEF 2 (Alternative Claim for Relief Under Rule 106(a)(4)) 64. The Plaintiffs incorporate all of the foregoing allegations as if set forth herein. 65. Plaintiffs do not believe Colo.R.Civ.Pro. 106(a)(4) is the proper procedure for challenging the Resolution or the District’s August 12, 2021 actions because the proceeding did not meet the legal requirements of a “quasi-judicial” administrative process. Nevertheless, Plaintiffs’ assert an alternative claim under Colo.R.Civ.Pro. 106(a)(4) in the event the Court determines that the District’s August 12, 2021 actions were “quasi-judicial” in nature and that jurisdiction exists under Rule 106(a)(4). 14 66. Plaintiffs request that the Court find, pursuant to Colo.R.Civ.Pro. 106(a)(4)(I), that the Resolution and actions of August 12, 2021 exceeded the jurisdiction of the District and that the District abused its discretion because: a) the District did not have the legal authority and jurisdiction under C.R.S. § 31- 23-209 to overturn the City’s disapproval of the Enterprise’s SPAR land application; b) the District, as a “governmental body,” failed to make the SPAR permit application “submission to the commission” as is required by C.R.S. § 31-23-209. c) the District did not have the legal authority under C.R.S. § 31-23-209, or C.R.S. § 24-68-101 et seq, to approve “a site specific development plan” for the Enterprise, as purportedly occurred in the Resolution and the District’s actions of August 12, 2021. Exhibit 1, p. 2, ¶ 3 (Resolution). d) the District did not have the legal authority under C.R.S. § 31-23-209, or C.R.S. § 24-68-101 et seq, to approve the “construction of the Poudre River Intake and Pipeline” by the Enterprise as purportedly occurred by the Resolution and the District’s actions of August 12, 2021. Exhibit 1, p. 2, ¶ 4 (Resolution). e) the District did not have the legal authority to grant its Enterprise a “vested right” pursuant to “C.R.S. § 24-68-101 et seq.” (“Vested Rights Act”), or C.R.S. § 31-23- 209, to construct the Poudre River Intake and/or Pipeline as purportedly occurred by the Resolution and the District’s actions on August 12, 2021. Exhibit 1, p. 2, ¶ 3 (Resolution). f) the District and/or the Enterprise did not qualify for SPAR and/or C.R.S. § 31- 23-209 because they did not “own or operate” the parcels upon which the construction of the Poudre River Intake and/or Pipeline would occur as required by the City Code 15 Section 2.1.3(E)(1); g) the District and each Board member violated Plaintiffs’ and/or their members’ procedural due process rights and had an unconstitutional conflict of interest when they voted to approve the Resolution because the Enterprise is a “business” owned by the District itself. Exhibit 1, p. 1. Tumey v. Ohio, 273 U.S. 510, 523 (2000); Caperton v. A.T. Massey Coal Co., Inc., 556 U.S. 868, 887 (2009); In re Murchison, 349 U.S. 133, 135 (1955)(the Due Process Clause prohibits a judge from acting as “a judge in his own case”); City of Manassa v. Ruff, 235 P.3d 1051, 1056-57 (Colo. 2010); and, Colorado Constitution, Article XXIX(1)(c). h) the District committed an “as applied” violation of Plaintiffs’ and/or their members’ due process rights guaranteed by the Colorado Constitution when it approved the Resolution without previously adopting any procedural regulations governing the proceedings and without previously adopting any standards or criteria governing a decision to overturn the City’s disapproval of the Enterprise’s SPAR land use application. People v. Maxwell, 401 P.3d 518, 520 (Colo.App. 2017); Sherman v. Colorado Springs Planning Commission, 763 P.2d 292 (1988). 67. Plaintiffs have no other plain, speedy, or adequate remedy provided by law. WHEREFORE, Plaintiffs respectfully request that this Court enter the declarations requested herein and vacate the Resolution and the District’s actions of August 12, 2021, and grant such other and further relief as the Court deems just and proper. Respectfully submitted this 31st day of August 2021. 16 /s/ John M. Barth John M. Barth Attorney at Law P.O. Box 409 Hygiene, CO 80533 barthlawoffice@gmail.com 303-774-8868 telephone and fax Counsel for Save the Poudre and No Pipe Dream LIST OF EXHIBITS Exhibit 1- Resolution D-1367-08-21 Exhibit 2- City of Fort Collins Natural Areas NISO Letter Exhibit 3- Save the Poudre August 11, 2021 Comment Letter Exhibit 4- Enterprise’s May 5, 2021 SPAR permit application cover letter Exhibit 5- City of Fort Collins SPAR Denial Letter Exhibit 6- Technical Memo Exhibit 7- NISP Alternative Analysis Exhibit 8- Parcel Ownership Map Exhibit 9- City of Fort Collins April 16, 2020 Memo Exhibit 10- City Code (excerpt) Exhibit 11- NISP Pipeline Map Exhibit 12- Poudre River Management Plan CERTIFICATE OF DELIVERY I hereby certify that on this 31st day of August 2021, a true and correct copy of the foregoing FIRST AMENDED COMPLAINT and all Exhibits thereto were filed via Colorado Courts E-filing System. The First Amended Complaint, all exhibits thereto, summons, and Motion to Prepare and Certify Administrative Record are being personally served on Defendant Northern Colorado Water Conservancy District on or about September 1, 2021. A return of service will be filed. As per Colo.R.Civ.Pro. 57 (j) and Colo.R.Civ.Pro. 5(b), this First Amended Complaint was also served by Certified Mail/Return Receipt Requested on the State of Colorado, Office of the Attorney General, 1300 Broadway, 10th Floor, Denver, CO 80203. /s/ John M. Barth John M. Barth