v. Bd. of Cty. Commr's for Boulder Cty , 2020 COA 28 ( 2020 )


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  •      The summaries of the Colorado Court of Appeals published opinions
    constitute no part of the opinion of the division but have been prepared by
    the division for the convenience of the reader. The summaries may not be
    cited or relied upon as they are not the official language of the division.
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    SUMMARY
    February 13, 2020
    2020COA28
    No. 18CA2454, Hajek v. Bd. of Cty. Commr’s for Boulder Cty. —
    Government — Local Government Regulation of Land Use —
    Adequate Water Supply for Development
    Section 29-20-303, C.R.S. 2019, requires that when a local
    government is considering a development permit it must review the
    adequacy of the proposed water supply if the development includes
    “new water use,” as used in section 29-20-103(1)(b), C.R.S. 2019, in
    an amount exceeding a defined threshold. In a matter of first
    impression, a division of the court of appeals concludes that the
    phrase “new water use” encompasses a change in either the
    quantity of the water used or the purpose for which the water is
    used.
    COLORADO COURT OF APPEALS                                        2020COA28
    Court of Appeals No. 18CA2454
    Boulder County District Court No. 18CV30183
    Honorable Thomas F. Mulvahill, Judge
    Sara Susie Hajek,
    Plaintiff-Appellant,
    v.
    Board of County Commissioners for Boulder County, Colorado; Fair Farm, LLC,
    a Colorado limited liability company; and Walter F. Pounds,
    Defendants-Appellees.
    JUDGMENT REVERSED AND CASE
    REMANDED WITH DIRECTIONS
    Division II
    Opinion by JUDGE TOW
    Webb and Terry, JJ., concur
    Announced February 13, 2020
    Spencer Fane LLP, Jacob F. Hollars, Gilbert F. McNeish, Denver, Colorado, for
    Plaintiff-Appellant
    Ben Perlman, County Attorney, David Hughes, Deputy County Attorney,
    Katherine A. Burke, Senior Assistant County Attorney, Boulder, Colorado, for
    Defendant-Appellee Board of County Commissioners for Boulder County,
    Colorado
    Lyons Gaddis Kahn Hall Jeffers Dworak & Grant, P.C., Timothy J. O’Neill,
    Longmont, Colorado, for Defendant-Appellees Fair Farm, LLC and Walter F.
    Pounds
    ¶1    State law requires that before a local government approves a
    development permit involving a significant “new water use,” the
    local government must consider the adequacy of the development’s
    proposed water supply. § 29-20-103(1)(b), C.R.S. 2019. In this
    C.R.C.P. 106(a)(4) action, we must determine, as a matter of first
    impression, whether the term “new water use” encompasses only
    the use of additional water, or also includes water put to a different
    purpose. We conclude that the legislature intended the term to
    have the latter definition. In so doing, we conclude that the Board
    of County Commissioners for Boulder County (Board) abused its
    discretion by granting conditional approval of the application by
    Walter F. Pounds and Fair Farm, LLC (collectively, Fair Farm) for
    Site Plan Review (SPR) without considering the adequacy of the
    proposed water supply. As a result, we reverse and remand with
    directions.
    I.   Background
    ¶2    Fair Farm sought to transition the use of its property from
    primarily grazing and hay production to an organic farm that would
    include “laying hens in mobile houses in rotation with vegetable
    production.” Because Fair Farm’s proposed operation required
    1
    building new structures on vacant land subject to a protective
    conservation easement owned by Boulder County, the construction
    was subject to SPR under the Boulder County Land Use Code.
    Accordingly, Fair Farm submitted an application for SPR to the
    Boulder County Land Use Department (Department).
    ¶3      In its application and accompanying narrative, Fair Farm
    proposed building twelve mobile chicken houses, four greenhouses,
    and structures for processing and storing eggs and harvested crops.
    When Fair Farm later submitted the Fair Farm Operating Plan &
    Best Management Practices (Operating Plan), it reported that each
    chicken house would contain approximately four hundred hens. 1
    While Fair Farm had originally listed the Little Thompson Water
    District as its proposed water supply for the operation, the
    Operating Plan specified that Fair Farm would instead use a thirty
    acre-foot water right from the Hessler Slough, though it never
    identified how much water the operation would require.
    ¶4      The Director of the Department conditionally approved Fair
    Farm’s application, opening a fourteen-day public comment period
    1   Thus, the operation would house approximately 4800 hens.
    2
    during which members of the community, including the appellant,
    Sara Hajek (the owner of a parcel adjacent to the proposed
    operation), submitted written comments voicing concerns over air
    and water quality, odors, increased traffic, attraction of natural
    predators to the area, and the adequacy of the water supply. The
    Director then referred the application to the Board to determine
    whether a public hearing would be required. The Board determined
    that a hearing was not necessary and, in doing so, finalized the
    Director’s conditional approval of Fair Farm’s application.
    ¶5    Hajek challenged the Board’s decision under C.R.C.P. 106.
    The district court affirmed the Board’s decision. Hajek now
    appeals.
    II.   Standard of Review
    ¶6    “Review of a governmental body’s decision pursuant to Rule
    106(a)(4) requires an appellate court to review the decision of the
    governmental body itself rather than the district court’s
    determination regarding the governmental body’s decision.” Bd. of
    Cty. Comm’rs v. O’Dell, 
    920 P.2d 48
    , 50 (Colo. 1996). Our review is
    limited to deciding whether the governmental body’s decision was
    an abuse of discretion, based on the evidence in the record before
    3
    it, or was made in excess of its jurisdiction. C.R.C.P. 106(a)(4)(I);
    Whitelaw v. Denver City Council, 
    2017 COA 47
    , ¶ 7.
    ¶7    A governmental body abuses its discretion if it misinterprets or
    misapplies the law or if no competent record evidence supports its
    decision. Alpenhof, LLC v. City of Ouray, 
    2013 COA 9
    , ¶ 9; Berger v.
    City of Boulder, 
    195 P.3d 1138
    , 1139 (Colo. App. 2008). There is no
    competent evidence in the record if “the governmental body’s
    decision is ‘so devoid of evidentiary support that it can only be
    explained as an arbitrary and capricious exercise of authority.’”
    
    O’Dell, 920 P.2d at 50
    (quoting Ross v. Fire & Police Pension Ass’n,
    
    713 P.2d 1304
    , 1309 (Colo. 1986)). Thus, we will reverse the
    Board’s decision if we determine that it erroneously interpreted the
    law or made a decision that is unsupported by the record. Nixon v.
    City & Cty. of Denver, 
    2014 COA 172
    , ¶ 12.
    ¶8    Whether the Board abused its discretion in this instance turns
    on the interpretation of several Colorado statutes, which we review
    de novo. Friends of the Black Forest Pres. Plan, Inc. v. Bd. of Cty.
    Comm’rs, 
    2016 COA 54
    , ¶ 15.
    4
    III.   Discussion
    A.   The Phrase “New Water Use” Includes Water Put to a Different
    Purpose
    ¶9     Hajek contends that the Board failed to comply with section
    29-20-303(1), C.R.S. 2019, which provides in pertinent part:
    A local government shall not approve an
    application for a development permit unless it
    determines in its sole discretion, after
    considering the application and all of the
    information provided, that the applicant has
    satisfactorily demonstrated that the proposed
    water supply will be adequate.
    As relevant here, section 29-20-103(1)(b), C.R.S. 2019, limits the
    definition of “[d]evelopment permit” to
    an application regarding a specific project that
    includes new water use in an amount more
    than that used by fifty single-family
    equivalents, or fewer as determined by the
    local government.
    ¶ 10   The Board and Fair Farm respond that the statute does not
    apply to Fair Farm’s application because the proposed laying hen
    operation did not involve a “new water use.” Therefore, they
    contend, the Board’s SPR was not the approval of a “development
    permit.”
    5
    ¶ 11   To resolve this threshold issue, we must consider the meaning
    of “new water use” as it is used in section 29-20-103(1)(b). When
    interpreting a statute, our goal is to “ascertain and give effect to the
    legislature’s intent.” Roup v. Commercial Research, LLC, 
    2015 CO 38
    , ¶ 8. To do so, we look first to the language of the statute and
    give words their plain and ordinary meaning. 
    Id. Unless the
    statutory language is ambiguous, we presume the General
    Assembly meant what it said. United Airlines, Inc. v. Indus. Claim
    Appeals Office, 
    993 P.2d 1152
    , 1157 (Colo. 2000). In addition, we
    construe the statute as a whole to give consistent, harmonious, and
    sensible effect to all its parts, and we presume that the legislature
    intended the entire statute to be effective. People v. Buerge, 
    240 P.3d 363
    , 367 (Colo. App. 2009). We also avoid interpretations that
    would render any words or phrases superfluous or would lead to
    illogical or absurd results. People v. Null, 
    233 P.3d 670
    , 679 (Colo.
    2010).
    ¶ 12   Our inquiry centers on the meaning of the word “new” in this
    context. In our view, it can be understood in two ways. “New” can
    be interpreted here as meaning “additional” — as in an additional
    6
    quantity of water — and as meaning “different” — as in a different
    purpose for which water is used.
    ¶ 13   While the word “new” can be defined in a number of ways
    depending on the context, the applicable dictionary definitions here
    are “having originated or occurred lately,” “being other than the
    former or old,” and “different or distinguished from a person, place,
    or thing of the same kind or name that has longer or previously
    existed.” Webster’s Third New International Dictionary 1522 (2002).
    Under any of these definitions, the word “new” does not exclusively
    mean additional. Rather, “new” is broad enough to also include a
    use that differs from prior use. Thus, giving the word “new” its
    plain and ordinary meaning, we construe the phrase “new water
    use” to encompass both the use of additional quantities of water
    and the use of water for a different purpose.
    ¶ 14   Notably, when sections 29-20-303(1) and 29-20-103(1)(b) were
    enacted, the General Assembly also added language defining an
    “[a]dequate” water supply as one that “will be sufficient for
    build-out of the proposed development in terms of quality, quantity,
    dependability, and availability to provide a supply of water for the
    type of development proposed . . . .” § 29-20-302(1), C.R.S. 2019.
    7
    Thus, in determining if a water supply is adequate for a proposed
    development under section 29-20-303(1), a local government is
    required to consider not only the quantity of the water to be used,
    but the quality as well. 
    Id. Because water
    quality is only relevant
    in the context of the purpose for which it is used, we draw two
    conclusions.
    ¶ 15   First, considering the quality of a water supply would not be
    necessary if the General Assembly had been solely concerned about
    development involving additional, as opposed to different, water
    use. But “quality” in this context indicates the General Assembly
    was also interested in the purpose for which water is used. Thus, a
    development’s use of water for a different purpose is a sufficient
    “new water use” to trigger section 29-20-303(1) oversight.
    ¶ 16   Second, if the General Assembly had intended section 29-20-
    303(1) to apply only where additional quantities of water are used
    and not where water is merely used for a different purpose, the
    reference to water quality would be unnecessary. Because we must
    avoid interpretations that render words or phrases superfluous, we
    cannot construe “new water use” to exclude instances where the
    8
    same quantity of water is used for a different purpose. 
    Null, 233 P.3d at 679
    .
    ¶ 17        Therefore, we conclude that the phrase “new water use” in
    section 29-20-103(1)(b) refers to the use of additional quantities of
    water as well as the use of a similar quantity of water for a different
    purpose. Thus, a “development permit” as referenced in section 29-
    20-303(1) includes approval of an application for a specific project
    where either (1) an additional use of water is required in the
    threshold amount set forth in section 29-20-103(b)(1) or (2) an
    amount of water exceeding the threshold set forth in section 29-20-
    103(b)(1) is to be used for a different purpose.2
    B.    The Fair Farm Application Implicated Section 29-20-303(1)
    ¶ 18        We next turn to whether the approval of the Fair Farm
    application was a “development permit” within the meaning of
    section 29-20-103(1)(b) and thus triggered section 29-20-303(1).
    ¶ 19        The Board and Fair Farm argue that Fair Farm’s SPR
    application was strictly limited to seeking approval to build the
    2We note that “new water use” is not specifically defined in any
    Colorado statute. However, in several other Colorado statutes,
    “water use” implies purpose and not volume. See, e.g., § 37-75-
    105(3)(a), C.R.S. 2019; § 37-97-103(5), C.R.S. 2019.
    9
    structures associated with the proposed operation, not for the
    operation itself. Indeed, as the Board and Fair Farm also point out,
    based on how the property is zoned, Fair Farm is already permitted
    by right to use the land for the envisioned laying hen operation
    without any special review or authorization. See Boulder County
    Land Use Code 4-502(D), Use Table 4-502.
    ¶ 20   Even so, because the proposed structures are intended to
    facilitate the operation, which includes water use, building the new
    structures necessarily implicates any “new water use” associated
    with the operation. Moreover, the Department conditioned approval
    in part on implementing prescribed management practices related
    to potential wildlife interactions with the hens and obtaining a
    permit for producing eggs, which indicates that the Department was
    also reviewing the operation as a whole in addition to the
    construction of the structures. For these reasons, we conclude that
    the approval of Fair Farm’s application for SPR is within the scope
    of a development permit. § 29-20-103(1).
    ¶ 21   However, as noted, such a development permit only falls
    within the ambit of section 29-20-303(1) if the operation “includes
    new water use in an amount more than that used by fifty
    10
    single-family equivalents.”3 § 29-20-103(1)(b). Although neither the
    statute nor any regulation referenced by the parties establishes how
    much water would be used by fifty single-family equivalents, Hajek
    alleged in her complaint that “[a] single family equivalent is typically
    in the range of 0.4 to 0.6 acre-feet . . . [t]hus ‘fifty single-family
    equivalents would require between 20 acre-feet and 30 acre-feet of
    water.” She also alleged that Fair Farm’s operation would require
    more than thirty acre-feet of water. On appeal, neither the Board
    nor Fair Farm argues that the amount of water required would be
    below this threshold.
    ¶ 22   In sum, because Fair Farm’s operation includes “new water
    use,” the statute required the Board to consider whether the
    amount of water used exceeded the threshold, and thus whether
    the Board had to review the application as a development permit
    under section 29-20-303(1). Because the Board did not do so, it
    3 While section 29-20-103(1)(b), C.R.S. 2019, allows a local
    government to set the standard at fewer than fifty single-family
    equivalents, Boulder County has not done so. Accordingly, the fifty
    single-family equivalent threshold provided in section 29-20-
    103(1)(b) applies.
    11
    abused its discretion by approving Fair Farm’s application. 4 See
    
    O’Dell, 920 P.2d at 50
    .
    C.     The Record Does Not Demonstrate Adequate Water Supply
    ¶ 23        The Board and Fair Farm argue that, even if the statute
    applies to Fair Farm’s application, reversal is not required because
    the record evidence demonstrates that the proposed water supply is
    adequate. We disagree.
    ¶ 24        First, while the Fair Farm application and Operating Plan
    alluded to two possible sources of water, nowhere did the
    application or other material Fair Farm submitted to the
    Department or Board indicate how much water the operation would
    require. In fact, the only indication in the record of the amount of
    water necessary for the operation is public comments submitted
    about the possible inadequacy of the supply. Without any estimate
    of how much water Fair Farm’s operation will require, the Board
    could not have considered whether the proposed water supply
    4 We note that, in addition to considering the adequacy of the
    proposed water supply, the statute required the Board to consider
    the documentation outlined in section 29-20-304, C.R.S. 2019,
    which Fair Farm never submitted. § 29-20-305(a), C.R.S. 2019.
    12
    would be adequate.5 Similarly, if the record does not reflect how
    much water will be required by the operation, it cannot possibly
    contain sufficient evidence for us to conclude that the proposed
    water supply is adequate.
    ¶ 25   Moreover, as we have noted, a consideration of the adequacy
    of the water supply includes exploring the quality as well as the
    quantity of the water available. Yet the record contains no
    information regarding whether the new operation will require water
    of a different quality than that required for the simple irrigation that
    has been occurring.
    ¶ 26   The Board and Fair Farm also essentially contend that the
    Board need only consider whether the applicant has proposed a
    water supply, and that it does not matter whether the applicant
    presently has the rights to that water. While the latter half of this
    argument is correct, it only goes so far.
    5 Indeed, in the Board’s answer to Hajek’s complaint in the district
    court, its response to the allegations regarding the volume of water
    the operation would require was that the Board was “without
    knowledge and information sufficient to form a belief as to the truth
    of the allegations.” The Board’s earlier disavowal of any knowledge
    regarding the amount of water involved cannot be reconciled with
    its assertion on appeal that the record reflects an adequate water
    supply.
    13
    ¶ 27   True, the statute provides that the applicant does not have to
    “own or have acquired the proposed water supply or constructed
    the related infrastructure at the time of the application.” § 29-20-
    303(2). This means precisely what it says: the Board cannot reject
    a development permit solely because the applicant has not yet
    obtained the rights to the water it proposes to use. But the Board
    must still consider whether, assuming the rights are obtained, the
    proposed water supply is adequate. Here, Fair Farm’s proposed
    water supply was a “thirty acre-foot water right.” Yet, as noted, the
    Board did not consider, and cannot say now, that this source would
    be adequate in terms of either quality or quantity.
    ¶ 28   Finally, the Board points out that “all determinations required
    under the enumerated provisions are made in the County’s ‘sole
    discretion’” and notes that it can delay addressing the adequacy of
    the water supply to a later date “if it became a relevant issue in the
    future.” First, we reject any implication that a local government’s
    decisions regarding the adequacy of a development’s water supply
    are unreviewable by a court merely because such decisions are
    entrusted to the local government’s “sole discretion.” The district
    and appellate courts are clearly empowered to review such
    14
    decisions for an abuse of that discretion. See C.R.C.P. 106(a).
    Second, the Board’s claim that it can consider the adequacy of the
    water supply whenever it deems it appropriate is contrary to the
    unequivocal statutory mandate that this consideration occur before
    any development permit is approved. § 29-20-303(1).
    IV.   Conclusion
    ¶ 29   The judgment is reversed, and the case is remanded to the
    trial court with directions to vacate the Board’s conditional approval
    and remand the case to the Board to determine whether the
    development’s water requirements exceed fifty single-family
    equivalents, and, if so, whether the applicant’s proposed water
    supply is adequate.
    JUDGE WEBB and JUDGE TERRY concur.
    15