HomeMy WebLinkAbout1982-175-12/07/1982-SUPPORTING APPROPRIATE EXEMPTION FOR MUNICIPALITIES FROM ANTI-TRUST LIABILITY RESOLUTION 82- 175
OF THE COUNCIL OF THE CITY OF FORT COLLINS
SUPPORTING APPROPRIATE EXEMPTION FOR
MUNICIPALITIES FROM ANTI-TRUST LIABILITY
WHEREAS, the exposure of municipalities in Colorado and throughout
the country to federal antitrust lawsuits has been greatly expanded as a
result of recent decisions of the United States Supreme Court, and
WHEREAS, the potential for treble damage awards and the substantial
expense of defending antitrust litigation, even is successful , may inhibit
municipalities from enacting or enforcing regulations which are intended to
protect the public health, safety and welfare, but which also may be deemed
to restrict competition, and
WHEREAS, at least four Colorado municipalities already have been
sued under the federal antitrust laws for various regulatory activities,
with claimed damages, when trebled, exceeding $100 million, and
WHEREAS, the cost to the taxpayers of one Colorado municipality in
defending one of these lawsuits, which was settled prior to trial , exceeded
$250,000, and
WHEREAS, municipalities differ from private entreprise in that private
enterprise is not charged with protecting the public health, safety
and welfare, and
WHEREAS, numerous protections from municipal regulations, other
than treble damages under the federal antitrust laws, are available such
as, public notice, public hearing, public meeting and public record re-
quirements, court review of actions, periodic elections and the rights of
initiated referendum and recall , and the continuing authority of the state
General Assembly or the people of Colorado to modify the statutory and
constitutional authority of Colorado' s municipalities, and
WHEREAS, state legislation does not provide any certain solution to
the problem, and years of litigation will be necessary to decide whether
any state legislation meets the test established by the U S Supreme Court
for local government antitrust immunity, and
WHEREAS, federal legislation can address the problem directly by
seeking a specific exemption from the federal antitrust laws for local
governments and all or some of their activities, and
WHEREAS, federal legislation could eliminate damages from the anti-
trust remedies available against local governments and their taxpayers,
and
WHEREAS, local governments should not be imperiled when engaging
in traditional local government regulatory activities such as zoning,
enacting and enforcing building and fire codes, regulating the use of
public rights-of-way, licensing, franchising and the myriad of other
regulatory activities traditionally engaged in by local governments
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that the City Council urges the Congress of the United States to
act as quickly as possible to provide appropriate exemptions for munici-
palities from federal antitrust liability
Passed and adopted at a regular meeting of the Council of the City of
Fort Collins this 7th day of December , 1982
Mayor
ATTEST
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