Maricopa County v. Maricopa County Mun. Water Conservation Dist. No. 1

Decision Date20 June 1991
Docket NumberNo. 1,CA-CV,1
Citation171 Ariz. 325,830 P.2d 846
PartiesMARICOPA COUNTY, a political subdivision, Plaintiff-Appellant, Cross-Appellee, v. MARICOPA COUNTY MUNICIPAL WATER CONSERVATION DISTRICT NO. 1, a municipal corporation, Defendant-Appellee, Cross-Appellant. 89-483.
CourtArizona Court of Appeals
OPINION

EUBANK, Judge.

This appeal arises from a dispute over a $2.00 entrance fee charged by Maricopa County (County), and then remitted to Maricopa County Municipal Water Conservation District No. 1 (MWD), for each vehicle entering Lake Pleasant Regional Park. In 1984, the parties entered into an agreement providing that the County would collect the $2.00 fee for MWD's benefit to help offset MWD's spiraling costs for the operation, maintenance and safety of Waddell Dam and Camp Dyer Diversion Dam. The agreement supplemented a 1969 contract authorizing the County to manage a regional park adjacent to Lake Pleasant until 1994.

In August 1988, the County sought a declaratory judgment in the superior court construing and determining the parties' rights under the 1984 agreement. The superior court, after both parties filed motions for summary judgment raising numerous arguments, ruled in MWD's favor on these issues. The superior court also awarded MWD attorneys' fees totalling $10,000.00, pursuant to A.R.S. § 12-348. The court refused to consider MWD's request for a fee award under A.R.S. § 12-341.01(A), finding that A.R.S. § 12-348 imposed a mandatory $10,000.00 limit on attorneys' fee awards against the County.

The County appealed addressing every issue raised in the superior court. MWD cross-appealed arguing that because the action arose from a contract, it was entitled to receive attorneys' fees under A.R.S. § 12-341.01(A), in addition to A.R.S. § 12-348. The amici curiae filed a brief directed at issues arising from the public trust doctrine and access to Lake Pleasant.

I

Between 1901 and 1918, MWD's predecessor, the Agua Fria Water and Land Company, obtained a federal right of way grant to all the land underlying Lake Pleasant and land lying within 50 feet of the water's edge. The right of way permits MWD to use the land as a reservoir for irrigation water and for other "purposes of a public nature."

MWD was organized in 1925 to provide irrigation water to lands west of Phoenix. MWD completed Waddell Dam and Camp Dyer Diversion Dam in 1928, impounding the Agua Fria River to create the reservoirs known as Lake Pleasant and Lower Lake Pleasant. MWD owns irrigation appropriation rights to the water stored in Lake Pleasant dating from the 1920s. In 1986, the Arizona Department of Water Resources (DWR) added domestic, stock watering, recreation and wildlife as other permitted appropriational uses.

MWD's facilities created extensive recreational opportunities. In 1956, after years of increasing public use, MWD approached the County regarding the establishment of a regional park at Lake Pleasant. Beginning in 1960, the County acquired by deeds, federal patents and state leases land surrounding and underlying Lake Pleasant. The County established Lake Pleasant Regional Park on this land. The documents conveying these interests to the County contain clauses recognizing existing rights of way; the County's interests are subject to MWD's federal grant. The County may continue to operate the park provided it does not interfere with MWD's right of way.

In 1969, the parties entered into a cooperative agreement recognizing the establishment of Lake Pleasant Regional Park and providing the County with "the exclusive right to use the surface of [Lake Pleasant] ... for recreational purposes." The County began to collect user fees to defray the park's operating costs.

In 1984, MWD requested that the 1969 agreement be amended, based on increased costs necessary to comply with federal and state dam safety requirements, to provide for a $2.00 fee for each vehicle entering the park to be collected by the County and remitted to MWD. 1 MWD thought that the park visitors should share the expense of maintaining and operating the dams because these facilities made public recreation possible.

The County initially disputed MWD's legal authority to request a $2.00 fee for public recreational use of Lake Pleasant, but agreed to collect the fee for MWD's benefit after soliciting the county attorney's advice. MWD agreed to pay the County's collection costs and to terminate the agreement when the federal government relieves MWD of responsibility for Waddell Dam. 2 For some undisclosed reason, the County became disenchanted with this arrangement and initiated the present action.

MWD claims the exclusive right to control public recreation and charge a $2.00 entrance fee to Lake Pleasant Regional Park based on federal grants and state water appropriations obtained for the construction and operation of Waddell Dam. 3 The County challenges MWD's right to collect and receive the $2.00 fee contending that its interests, obtained solely for the specific purpose of providing public recreation provide it with the exclusive right to receive fees associated with the park's use.

We believe that the validity of the agreement and the $2.00 fee hinges on each party's authority to enter into the agreement. As political subdivisions, both MWD and the County must be granted the power to establish, maintain and assess public recreation at Lake Pleasant. Absent such power, the contract would be void. We hold that each party possesses the power to perform these functions. Because we conclude that the agreement and the $2.00 fee are valid, we need not decide the other numerous issues raised in the parties' briefs and the amici curiae's brief regarding water rights and the public trust doctrine. 4 Additionally, we find the arguments addressing the affirmative defenses and standing to be without merit.

II
A

MWD's powers are controlled by statute and the Arizona Constitution. The legislature has declared that improvement districts such as MWD are municipal corporations. A.R.S. § 48-2901. The powers of a municipal corporation are those that are given it by the state. Town of Holbrook v. Nutting, 57 Ariz. 360, 362, 114 P.2d 226, 226-27 (1941); McClintock v. City of Phoenix, 24 Ariz. 155, 158, 207 P. 611, 612 (1922), cited in Local 266 v. Salt River Project Agricultural Improvement & Power District, 78 Ariz. 30, 38, 275 P.2d 393, 398 (1954). The general rule is that municipal corporations, as legislative creations, possess and exercise only such powers expressly granted, those necessarily or fairly implied by or incident to the powers expressly conferred, and those essential to the accomplishment of the corporation's declared objectives and purposes. City of Glendale v. White, 67 Ariz. 231, 234, 194 P.2d 435, 437 (1948) (quoting 37 Am.Jur. Municipal Corporations, § 112, p. 722); see also C. Rhyne, The Law of Local Government Operations, § 4.7, p. 64 (1980).

The people of Arizona, through the constitution, and the legislature, by statute, have granted powers to irrigation and water conservation districts comparable to those of municipalities and other political subdivisions of the state. Article 13, section 7 of the Arizona Constitution provides:

Irrigation, power, electrical, agricultural improvement, drainage, and flood control districts, and tax levying public improvement districts, now or hereafter organized pursuant to law, shall be political subdivisions of the State, and vested with all the rights, privileges and benefits, and entitled to the immunities and exemptions granted municipalities and political subdivisions under this Constitution or any law of the State or of the United States....

(Emphasis added.) Furthermore, A.R.S. § 48-2978(15) provides:

In order to accomplish the purposes of the district the board may:

* * * * * *

15. Provide the district with water, electricity and other public conveniences and necessities, and engage in any and all activities, enterprises and occupations within the powers and privileges of municipalities generally.

(Emphasis added.) These provisions allow water conservation districts, once legally established and acting pursuant to the purposes of the district, to engage in many of the activities generally performed by municipalities and other political subdivisions. See City of Scottsdale v. McDowell Mountain Irrigation and Drainage District, 107 Ariz. 117, 122-23, 483 P.2d 532, 537-38 (1971).

Municipalities derive their powers from charters or the legislature. City of Glendale v. White, 67 Ariz. 231, 234, 194 P.2d 435, 437 (1948). Express powers conferred on a municipality by statute carry with them all implied powers necessary to make them effective. Walton v. City of Phoenix, 69 Ariz. 26, 30, 208 P.2d 309, 311 (1949).

Municipalities in Arizona have for decades exercised their power to provide public parks to their citizens. A.R.S. § 9-494(A) states:

A city or town may establish and maintain public parks, and acquire, hold or improve real property for that purpose.

Additionally, A.R.S. § 9-276(A)(1) provides that the governing bodies of municipalities may:

Lay out and establish, regulate the use, open, vacate, alter, widen, extend, grade, pave, plant trees or otherwise improve streets, alleys, avenues, sidewalks, parks and public grounds.

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