IN THE SUPREME COURT OF THE STATE OF IDAHO
Docket No. 34513
BLACK LABRADOR INVESTING, LLC, )
)
Petitioner-Respondent, ) Boise, June 2008 Term
)
v. ) 2009 Opinion No. 42
)
KUNA CITY COUNCIL and the CITY OF ) Filed: April 2, 2009
KUNA, IDAHO, a political subdivision of the )
State of Idaho, ) Stephen Kenyon, Clerk
)
Respondents-Appellants. )
Appeal from the District Court of the Fourth Judicial District of the State of
Idaho, Ada County. Honorable D. Duff McKee, District Judge.
The decision of the district court is vacated and the case is remanded with
directions to dismiss the petition for judicial review.
Grove Legal Services, Nampa, for appellants. Randall Grove argued.
Real Estate Law Group, Eagle, for respondent. Eric Clark argued.
_______________________________________________
HORTON, Justice
This appeal arises from a petition for judicial review from a city council‟s denial of an
application for annexation. The Kuna City Council (the Council) denied an application for
annexation by Respondent Black Labrador Investing, LLC (Black Labrador). Appellant City of
Kuna (the City) appeals the district court‟s decision reversing and remanding the case to the
Council for further proceedings. We hold that no statute authorizes judicial review in the instant
case. Accordingly, we vacate the district court‟s order and remand to the district court for
dismissal of the petition for judicial review.
I. FACTUAL AND PROCEDURAL BACKGROUND
Black Labrador owns a 1.79-acre lot adjacent to the City in Ada County. Black Labrador
initially planned to subdivide the property into two separate .89-acre lots and build a single-
family home on each lot. Black Labrador sought permission from the City to annex and
subdivide the property. Although the property had access to City water service, sewer lines were
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located about a mile away. At the time of Black Labrador‟s application, the parties anticipated
that City sewer service would be available to the property in about two years.
In lieu of connecting the two homes to the City‟s sewer service, Black Labrador planned
to use an existing septic system and install an additional nitrate reducing septic system. Black
Labrador also sought to enter into a development agreement with the City whereby Black
Labrador would fit each home with “dry lines” to connect to the City sewer system once that
service was available. The homeowners would then abandon the septic systems after connecting
to City sewer.
The City Planning and Zoning Commission found that the annexation and lot split
complied with the City Code, the City Comprehensive Plan, and I.C. § 50-222. On October 24,
2006, after a public hearing, the Planning and Zoning Commission recommended that the
Council approve the annexation. On November 22, 2006, Black Labrador amended the
development proposal to subdivide and develop the property into three lots of approximately .65
acre each. Black Labrador planned to install an additional nitrate reducing septic system to
accommodate the third home. Black Labrador did not submit the amended development plan to
the Planning and Zoning Commission for comment and recommendation.
The Council scheduled Black Labrador‟s annexation application for consideration on
November 21, 2006. The Planning and Zoning Commission, however, asked that the Council
table the matter until the December 5, 2006 meeting. During the November 21, 2006 meeting,
Diane Sanders, the Planning and Zoning Director, and the Council discussed two proposed
annexations that were similar to Black Labrador‟s application. Sanders indicated that the owners
of properties near Meadow View and Ash streets, where City water service was available but
City sewer service was not, had asked to install septic tanks on half-acre lots that would
subsequently be annexed into the City. The property owners would install “dry lines” in the
subdivisions for use when sewer service became available. Sanders asked the Council for its
position regarding septic tanks on property the City would subsequently annex. The Council
indicated that it did not want new developments installing septic tanks for use within City limits.
On December 1, 2006, the Central District Health Department (Health Department) sent
the Council an opinion letter. The Health Department indicated that it was possible to put a
septic system on a half-acre lot without a water well. Additionally, the Health Department
indicated that a subdivision near Black Labrador‟s property conducted a nutrient pathogen study
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a number of years ago under criteria that was more lenient than the standards in effect at the time
of the instant controversy. That study resulted in a requirement for a minimum lot size of one
acre due to the level of nitrates in the septic effluent. The Health District does not require a
nutrient pathogen study unless a subdivision will discharge more than 600 gallons of effluent per
day. Black Labrador‟s subdivision would not meet this threshold.
At the December 5, 2006 Council meeting, the Council indicated that it was concerned
with the level of nitrates and phosphates Black Labrador‟s septic tanks would discharge. Steve
Rule, a distributor of the AdvanTex septic systems Black Labrador hoped to install, addressed
the Council at the meeting. Rule indicated that the AdvanTex septic systems could reduce nitrate
discharge to acceptable levels. However, Rule indicated the system could not reduce the level of
phosphates discharged from the septic systems.
The Council also indicated that the City was attempting to build a $30 million wastewater
treatment facility in order to reduce its wastewater nitrate and phosphate footprints. The Council
was wary of approving Black Labrador‟s application while also asking its citizens connected to
the sewer system to pay for a treatment plant that would reduce waste levels below that of the
AdvanTex septic systems. The Council was also wary of the fact that Black Labrador would use
an existing septic tank on the property that would not reduce nitrates or phosphates. Based on
this discussion, the Council voted unanimously to deny Black Labrador‟s proposed annexation.
The Council subsequently released its findings of fact and conclusions of law denying the
application. The Council found that annexation without connection to the City sewer system was
not in the public interest pursuant to Kuna City Code (KCC) 6-4-2-H. On December 7, 2006,
Black Labrador filed a petition for judicial review asking the district court to set aside the
decision of the Council and issue an order approving the annexation and lot split. On July 10,
2007, the district court issued its written decision reversing the Council‟s denial and remanding
the case to the Council for further consideration. The district court ordered the Council to
provide Black Labrador with a new hearing on its application, reconsider the application, and
issue written findings of fact and conclusions of law based upon the record. The City timely
appealed to this Court.
II. STANDARD OF REVIEW
In an appeal from a district court‟s decision where the district court was acting in its
appellate capacity under the Idaho Administrative Procedure Act (APA), this Court reviews the
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agency record independently of the district court‟s decision. Castenada v. Brighton Corp., 130
Idaho 923, 926, 950 P.2d 1262, 1265 (1998). This Court will defer to the agency‟s findings of
fact unless those findings are clearly erroneous. Id. When supported by evidence in the record,
the agency‟s factual determinations are binding on the reviewing court even when there is
conflicting evidence before the agency. Id.
III. ANALYSIS
In order to obtain judicial review of the City‟s decision regarding annexation, there must
be a statute granting the right of judicial review. Highlands Dev. Corp. v. City of Boise, 145
Idaho 958, 960-61, 188 P.3d 900, 902-03 (2008) (citing Gibson v. Ada County Sheriff’s Dep’t.,
139 Idaho 5, 8, 72 P.3d 845, 848 (2003)). Black Labrador argues that the APA, KCC, and the
Local Land Use Planning Act (LLUPA) authorize judicial review of the City‟s denial of its
annexation application. We disagree.
A. There is no statutory right of judicial review of the City’s denial of Black
Labrador’s application for annexation under the APA.
The APA generally does not authorize judicial review of decisions made by counties or
cities. Highlands, 145 Idaho at 960, 188 P.3d at 902; Petersen v. Franklin County, 130 Idaho
176, 182, 938 P.2d 1214, 1220 (1997). The judicial review standards found within the APA only
apply to agency actions. Gibson, 139 Idaho at 7, 72 P.3d at 847. “„Counties and city
governments are considered local governing bodies rather than agencies for purposes of the
[APA].‟” Giltner Dairy, LLC v. Jerome County, 145 Idaho 630, 632, 181 P.3d 1238, 1240
(2008) (quoting Gibson, 139 Idaho at 7, 72 P.3d at 847); see also Idaho Historic Preservation
Council, Inc. v. City Council of City of Boise, 134 Idaho 651, 653, 8 P.3d 646, 648 (2000)
(stating “[t]he language of the [APA] indicates that it is intended to govern the judicial review of
decisions made by state administrative agencies, and not local governing bodies.” (emphasis in
original)).
Historically, this Court has characterized annexation decisions as legislative decisions by
cities and therefore not subject to judicial review. See Crane Creek Country Club v. City of
Boise, 121 Idaho 485, 487, 826 P.2d 446, 448 (1990) (holding that annexation is a legislative act
of city government accomplished by the enactment of an ordinance and therefore not subject to
writ of prohibition); Burt v. City of Idaho Falls, 105 Idaho 65, 68, 665 P.2d 1075, 1078 (1983).
Idaho Rule of Civil Procedure 84(a)(1) provides, in pertinent part, that “[a]ctions of state
agencies or officers or actions of a local government, its officers or its units are not subject to
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judicial review unless expressly authorized by statute.” Thus, we must determine whether there
is express statutory authorization for a party to obtain judicial review of a city‟s decision to deny
a request for annexation.
1. Idaho Code § 50-222 does not authorize judicial review of the denial of Black
Labrador‟s application for annexation.
The legislature has specifically authorized judicial review under the APA of a city
council‟s annexation decision under certain circumstances. I.C. § 50-222(6). Idaho Code § 50-
222 divides annexations into three categories: category A, B, and C.1 Category A annexations
are defined as follows:
Category A: Annexations wherein all private landowners raise no
objection to annexation, or annexations of any residential enclaved lands of less
[than] one hundred (100) privately-owned parcels, irrespective of surface area,
which are surrounded on all sides by land within a city or which are bounded on
all sides by lands within a city and by lands for which owner approval must be
given pursuant to subsection (5)(b)(v) of this section, or which are bounded on all
sides by lands within a city and by the boundary of the city‟s area of city impact.
I.C. § 50-222(3)(a) (emphasis added).2 Category B annexations involve lands that contain less
than one hundred separate private ownerships where not all landowners consent to annexation, or
lands that contain more than one hundred separate private ownerships where landowners owning
more than fifty percent of the area of the lands consent to annexation, or lands that are subject to
a development moratorium or a water or sewer connection restriction imposed by state or local
health or environmental agencies. I.C. § 50-222(3)(b). Category C annexations involve lands
that contain more than one hundred separate private ownerships where landowners owning more
than fifty percent of the area of the lands have not consented to annexation. I.C. § 50-222(3)(c).
Idaho Code § 50-222(6) authorizes judicial review under the APA of a city council‟s
decision to annex lands in category B and C annexations only. Idaho Code § 50-222(6) provides
in relevant part:
The decision of a city council to annex and zone lands as a category B or
category C annexation shall be subject to judicial review in accordance with the
1
The legislature made minor changes to these categories during the 2008 legislative session. 2008 S.L. ch.
118, § 1, p. 327. The changes reflect technical changes to provide for better organization of the statute and to
eliminate implied consent annexations after July 1, 2008. Statement of Purpose, 2008 S.L. ch. 118, § 1.
2
The version of I.C. § 50-222(3)(a) in effect at the time of the filing of this case contained a typographical
error, and the word “that” was included in the place of the word “than.”
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procedures provided in chapter 52, title 67, Idaho Code, and pursuant to the
standards set forth in section 67-5279, Idaho Code.
I.C. § 50-222(6) (emphasis added). Idaho Code § 50-222(6) also contains a broad grant of
judicial review that applies to all annexations authorized by a city council: “All cases in which
there may arise a question of the validity of any annexation under this section shall be advanced
as a matter of immediate public interest and concern, and shall be heard by the district court at
the earliest practicable time.” I.C. § 50-222(6).
If the City had annexed Black Labrador‟s property, the action would have been a
category A annexation as Black Labrador, the only private landowner involved, did not raise an
objection to annexation. However, I.C. § 50-222(6) does not authorize judicial review of a
category A annexation under the APA. The structure of I.C. § 50-222(6) clearly reflects that the
right of judicial review is dependent upon an affirmative decision to annex property; the
legislature did not provide for judicial review when a city has decided not to annex property.
Based upon its interpretation of the legislative intent behind I.C. § 50-222, Black
Labrador argues that I.C. § 50-222 permits judicial review in cases involving a landowner that
has initiated an annexation application as opposed to a city. We do not find it necessary to
address Black Labrador‟s interpretation of the legislative intent behind I.C. § 50-222. Our
inquiry begins and ends with the plain language of the statute. When this Court interprets a
statute, it begins with the literal words of the statute, giving those words their plain, usual, and
ordinary meaning. McLean v. Maverik Country Stores, Inc., 142 Idaho 810, 813, 135 P.3d 756,
759 (2006). Additionally, this court must construe the statute as a whole. Id. The plain
language of I.C. § 50-222 does not distinguish between annexations initiated by a city or a
landowner. Therefore, it is improper for this Court to read this distinction into the statute.
Black Labrador also argues that the last sentence of I.C. § 50-222(6) authorizes judicial
review of an annexation decision when there is a dispute concerning the annexation. That
sentence provides: “All cases in which there may arise a question of the validity of any
annexation under this section shall be advanced as a matter of immediate public interest and
concern, and shall be heard by the district court at the earliest practicable time.” I.C. § 50-
222(6). However, judicial review under that sentence requires an affirmative decision by a city
to annex property. The instant case does not involve an affirmative decision by the City to annex
property. Therefore, we conclude that I.C. § 50-222(6) does not expressly authorize judicial
review in the instant case.
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2. The Kuna City Code does not create a right of judicial review of Black Labrador‟s
application for annexation.
Black Labrador argues that KCC 5-1A-7 authorizes judicial review in accordance with
I.R.C.P. 84(a)(1). Kuna City Code 5-1A-7, subsection E provides in relevant part: “The council
shall provide the applicant written findings of fact and conclusions of law in accord with Idaho
Code sections 67-6519 and 67-6535 stating the reasons for the decision.” Idaho Code § 67-6519,
in turn, provides in relevant part: “An applicant denied a permit or aggrieved by a decision may
within twenty-eight (28) days after all remedies have been exhausted under local ordinance seek
judicial review under the procedures provided by [the APA].”
Black Labrador‟s implicit assertion that a city ordinance can authorize judicial review is
incorrect. This Court decided whether a county ordinance may authorize judicial review
pursuant to the APA in Gibson v. Ada County Sheriff’s Department. In Gibson, we determined
the answer to this question depended on whether the county was empowered to enact a law
providing for judicial review under the Idaho State Constitution. 139 Idaho at 8, 72 P.3d at 848.
We determined that a county‟s power to enact such a law was outside the scope of local
police regulations delegated to counties under Article XII, § 2 of the Idaho State Constitution.
Consequently, the county ordinance providing judicial review under the APA conflicted with the
general laws of this State. Id. Article XII, § 2 of the Idaho State Constitution provides: “Any
county or incorporated city or town may make and enforce, within its limits, all such local
police, sanitary and other regulations as are not in conflict with its charter or with the general
laws.” Because Article XII, § 2 applies to both cities and counties, our reasoning in Gibson
applies to the instant case. Consequently, to the extent that the Kuna City Code may be
interpreted as purporting to authorize judicial review under the APA, it conflicts with the general
laws of this State, as did the county ordinance in Gibson. Accordingly, we conclude that KCC 5-
1A-7 is not a basis for judicial review of the City‟s annexation decision.
3. LLUPA does not authorize judicial review of the City‟s denial of Black Labrador‟s
application for annexation.
Black Labrador argues that the City‟s decision denying annexation did not satisfy the
requirements of the Local Land Use Planning Act, I.C. § 67-6501 et seq. Specifically, Black
Labrador asserts that the City‟s decision was inconsistent with the requirements of I.C. § 67-
6535, which provides in relevant part:
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(a) The approval or denial of any application provided for in this chapter
shall be based upon standards and criteria which shall be set forth in the
comprehensive plan, zoning ordinance or other appropriate ordinance or
regulation of the city or county.
(b) The approval or denial of any application provided for in this chapter
shall be in writing and accompanied by a reasoned statement that explains the
criteria and standards considered relevant, states the relevant contested facts relied
upon, and explains the rationale for the decision based on the applicable
provisions of the comprehensive plan, relevant ordinance and statutory
provisions, pertinent constitutional principles and factual information contained in
the record.
Black Labrador argues that its application for annexation complied with the City‟s
comprehensive plan, and all zoning ordinances, and therefore it was an abuse of discretion for
the Council to deny the application. Additionally, Black Labrador argues that the City did not
provide a reasoned statement explaining the rationale for the decision based on the applicable
provisions of the comprehensive plan, relevant ordinances and statutory provisions, pertinent
constitutional principles, and facts contained in the record.
Before we can address the merits of Black Labrador‟s claim, we must first consider
whether LLUPA authorizes judicial review in this case. LLUPA authorizes judicial review in
cases where a person has applied for and been denied a permit that is required or authorized
under LLUPA. Highlands, 145 Idaho at 961, 188 P.3d at 903; I.C. § 67-6519. LLUPA
specifically mentions special use permits, I.C. § 67-6512; subdivision permits, I.C. § 67-6513;
planned unit development permits, I.C. § 67-6515; variance permits, I.C. § 67-6516; and
building permits, I.C. § 67-6517. Giltner Dairy, 145 Idaho at 633, 181 P.3d at 1241. LLUPA
also authorizes judicial review in cases where a person‟s interest in real property may be
adversely affected by the issuance or denial of a permit authorizing development. I.C. § 67-
6521. LLUPA does not mention any permit that relates to the annexation of land by a city.
Black Labrador does not argue that the City denied it any permit required or authorized under
LLUPA. Accordingly, we conclude that LLUPA does not authorize judicial review in the instant
case.
B. Black Labrador is not entitled to an award of attorney fees incurred on appeal.
Black Labrador seeks an award of attorney fees on appeal pursuant to I.C. § 12-117.
Since Black Labrador has not prevailed in this appeal, it is not entitled to attorney fees under I.C.
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§ 12-117. Neighbors for a Healthy Gold Fork v. Valley County, 145 Idaho 121, 138, 176 P.3d
126, 143 (2007).
IV. CONCLUSION
We hold that no statute authorizes judicial review in the instant case. We vacate the
district court‟s order and remand the matter to the district court with directions to dismiss the
petition for judicial review.
Chief Justice EISMANN and Justices BURDICK, J. JONES and W. JONES CONCUR.
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