Bernau v. Iowa Dept. of Transp.

• Decision Date: 01 July 1998
• Docket Number: No. 96-1593,96-1593
• Citation: 580 N.W.2d 757
• Parties: James BERNAU, Mary Bernau, Carlisle Beekman, Lorraine Beekman, Richard Laube, Judy Laube, Merlin Stock, Cheryl Stock, Gary Bernau, Patricia Bernau, David Bernau, and Jolene Bernau, Appellants, v. IOWA DEPARTMENT OF TRANSPORTATION, The Iowa Transportation Commission, Catherine Dunn, Chairperson, Lloyd E. Clark, Commissioner, Janice Johnson, Commissioner, Richard Pellet, Commissioner, Bonnie Vetter, Commissioner, Marlin Volz, Jr., Commissioner, and Daniel Wiedemeier, Commissioner, Appellees.
• Court: Iowa Supreme Court

Page 757

580 N.W.2d 757

James BERNAU, Mary Bernau, Carlisle Beekman, Lorraine Beekman, Richard Laube, Judy Laube, Merlin Stock, Cheryl Stock, Gary Bernau, Patricia Bernau, David Bernau, and Jolene Bernau, Appellants, v. IOWA DEPARTMENT OF TRANSPORTATION, The Iowa Transportation Commission, Catherine Dunn, Chairperson, Lloyd E. Clark, Commissioner, Janice Johnson, Commissioner, Richard Pellet, Commissioner, Bonnie Vetter, Commissioner, Marlin Volz, Jr., Commissioner, and Daniel Wiedemeier, Commissioner, Appellees.

No. 96-1593.

Supreme Court of Iowa.

July 1, 1998.

Richard A. Pundt and David J. Smith of Pundt Law Offices, Cedar Rapids, for appellants.

Thomas J. Miller, Attorney General, David Ferree, Special Assistant Attorney General, and Mark Hunacek, Assistant Attorney General, for appellees.

Considered by McGIVERIN, C.J., and LARSON, LAVORATO, ANDREASEN, and TERNUS, JJ.

LAVORATO, Justice.

In this judicial review proceeding, affected property owners and renters appeal from a district court ruling that affirmed a decision of the Iowa Transportation Commission (commission) to select a certain route for the U.S. Highway 218 Charles City bypass. The property owners and renters contend that the commission decision violates Iowa Code section 306.9 (1993). They also challenge the Iowa Department of Transportation's (IDOT) refusal to hold a contested case hearing, promulgate an administrative rule, and conduct a corridor hearing. We affirm.

I. Facts.

The appellants own or rent farmland in Floyd County, Iowa. The commission's bypass decision affects their property. The Charles City bypass is part of the Avenue of the Saints project from St. Louis, Missouri to St. Paul, Minnesota. The Saints project involves the construction of a four-lane divided roadway corridor from Waterloo, Iowa to Mason City, Iowa.

The proposed bypass project provides for the relocation of U.S. Highway 218 in Floyd County. The bypass begins near the intersection of County Road B-59 and existing U.S. Highway 218 southeast of Charles City and extends northwest to the C.P. rail system, bypassing Charles City to the south and west.

The appellants do not dispute the entire length of the bypass. What they do dispute is the segment that runs from the intersection of U.S. Highway 218 and County Road B-59 to the intersection of U.S. Highway 218 and County Road T-64. This segment is commonly referred to as the "south tie-in."

Notwithstanding the present dispute, local residents of Charles City generally support the bypass proposal. Many consider the speedy construction of the bypass essential for relieving an economic blight that has settled over the area since the departure of a farm implement plant. The record shows that currently a number of businesses plan to locate to the area once they know the location of the bypass.

Uncertainty has surrounded the location of the bypass since the project's inception more than eight years ago. In October 1990 the commission conducted a location public hearing on the bypass.

Following the hearing, the commission approved a survey alignment for the south tie-in. The alignment began on existing U.S. Highway 218 and followed the highway north before curving into an east-west run along property lines.

Although the bypass project itself received public support, the east-west segment of the bypass generated considerable public debate. The debate prompted the IDOT to initiate additional studies to examine a suggested alignment located one-half mile farther south of the one the commission approved following the October 1990 hearing.

The IDOT presented a report of its studies to the commission in another public hearing in Charles City in December 1990. In February 1991 the commission convened a third public hearing at which the commission agreed with local residents to shift the proposed location of the bypass to the south. The commission ordered the IDOT to survey and prepare designs to complete the bypass.

During the design phase the IDOT staff encountered a number of problems. First, the original alignment encroached on a quarry and landfill site, posing construction difficulties and environmental concerns. Second, the original alignment traversed the Bloody Creek area at such an angle that traffic staging and property access became troublesome and a longer, more expensive bridge would be needed. Last, there was some concern that the bypass location would adversely affect an area of some historical significance.

These problems prompted the IDOT to explore other alternatives. One alternative located the bypass east of the original alignment, and one located it further west. An engineering consultant study discussing the various alternatives uses the phrase "Alternate D" to refer to the west bypass. At some point one of the alternatives was discarded and "Alternate D" became "Alternate C."

The consultant study recommended "Alternate C"--the bypass west of the original alignment. They did so for the following reasons: Alternate C would save more than $2 million in construction costs, eliminate the need to acquire several residences, and eliminate encroachment on an historical site.

In December 1992 IDOT held an informal public informational hearing to discuss the various bypass alternatives. A number of people attended this meeting including James Bernau, one of the appellants. Previously, IDOT had given him and several other appellants notice of the hearing. The IDOT included in the notice a map of the new alignment alternatives.

In February 1993 the commission met and considered the bypass alternatives. The commission considered the pros and cons of each alternative. Consideration of Alternate C stirred up considerable public objection, principally from affected landowners. Despite the objections, the commission favored additional study of Alternate C and voted accordingly.

Before taking irreversible action on the matter, the commission held another public hearing in January 1994. Several of the appellants were among a number of people who attended this hearing.

In May 1994 the IDOT held a project review meeting. The IDOT staff approved the project for presentation to the commission. The commission took up the matter the following month in a public hearing. James Bernau was present and spoke in opposition to Alternate C. The commission heard the previous pros and cons of the various alternatives and in the end voted not to approve Alternate C. One commission member, however, noted that the project would be brought back to the commission.

Three weeks later, following a public hearing, the commission reversed itself and approved Alternate C. James Bernau was also at this hearing and again addressed the commission. In reaching its decision, the commission again considered the pros and cons of the various alternatives.

II. Proceedings.

The commission's decision approving Alternate C prompted James Bernau and the other appellants to seek judicial review in the district court. The petition for judicial review alleged that the commission's decision violated the command of Iowa Code section 306.9.

At the same time, the appellants filed petitions with the IDOT. They petitioned the agency to, among other things, (1) promulgate a rule to implement Iowa Code section 306.9, (2) grant them a contested case hearing, and (3) grant them a "proper corridor" hearing. The agency denied the petitions.

The district court ruled the IDOT correctly denied the petitions. The court also ruled that the commission did not violate Iowa Code section 306.9. The court acknowledged that this code provision placed substantive burdens on the commission's decision making. It concluded, however, the commission correctly exercised its discretion given all the factors militating against the other alternatives.

III. Highway Placement and Iowa Code Section 306.9.

A. Highway placement. Generally speaking, the decision where to locate a highway rests solely within the discretion of the legislative body, or its delegated administrative agency. 39 Am.Jur.2d Highways, Streets, and Bridges § 49, at 438 (1968). Thus, the power to determine the location of a highway is a legislative, and not a judicial, function. Id. In the absence of fraud, corruption, oppression, or gross injustice, courts are not to interfere with that function. Id.

All of this is true in Iowa. See Harvey v. Iowa State Highway Comm'n, 256 Iowa 1229, 1231, 130 N.W.2d 725, 727 (1964). The legislature has empowered the Highway Division of IDOT to make initial recommendations regarding location of highways and has empowered the commission to make decisions regarding which of the alternatives proposed should be adopted. Iowa Code §§ 307.10, 307A.2(12); Pundt Agric. Inc. v. Iowa Dep't of Transp., 291 N.W.2d 340, 345 (Iowa 1980).

B. Iowa Code section 306.9. The legislature, however, has circumscribed the commission's discretion with respect to road relocation by passing Iowa Code section 306.9. Section 306.9 provides in relevant part:

It is the policy of the state of Iowa that relocation of primary highways through cultivated land shall be avoided to the maximum extent possible. When the volume of traffic for which the road is designed or other conditions, including designation as part of the network of commercial and industrial highways, require relocation, diagonal routes shall be avoided if feasible and prudent alternatives consistent with efficient movement of traffic exist.

The improvement of two-lane roads shall utilize the existing right-of-way unless alignment or other conditions, including designation as part of the network of commercial and industrial highways, make changes imperative, and when a two-lane road is expanded to a four-lane road, the normal procedure shall be that the additional right-of-way be contiguous to the existing right-of-way unless relocated for compelling reasons, including the need to provide efficient movement of traffic on the network...