TC Res. No. 1983-03RESOLUTION NO.#83=3
SERIES OF 1983
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;
WHEREAS, the potential for treble damage awards and
the substantial expense of defending antitrust litigation,
even if 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;
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;
WHEREAS, the cost to the taxpayers of one Colorado
municipality in defending one of thesellawsuits, which was
settled prior to trial, exceeded $250,000;
WHEREAS, municipalities differ from private
enterprise in that private enterprise is not charged with
protecting the public health, safety and welfare;
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 requirements, 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;
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;
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;
WHEREAS, federal legislation could eliminate
damages from the antitrust 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 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 TOWN OF AVON
that the Congress of the United States should act as quickly
as possible to provide appropriate exemptions for municipalities
from federal antitrust liability.
ADOPTED this 11th day of January, 1983.
TOWN COUNCIL
TOWN OF AVON
B r--
Allan R. Nottingh , Mayor