CO Code § 32-1-1001 (2021)
2021 Colorado Code|Title 32 - Special Districts|Article 1 - Special District Provisions|Part 10 - General Powers|§ 32-1-1001. Common Powers - Definitions

  For and on behalf of the special district the board has the following powers:   To have perpetual existence;    To have and use a corporate seal;    To sue and be sued and to be a party to suits, actions, and proceedings;      To enter into contracts and agreements affecting the affairs of the special district except as otherwise provided in this part 10, including contracts with the United States and any of its agencies or instrumentalities. Except in cases in which a special district will receive aid from a governmental agency or purchase through the state purchasing program, a notice shall be published for bids on all construction contracts for work or material, or both, involving an expense of sixty thousand dollars or more of public moneys. The special district may reject any and all bids, and, if it appears that the special district can perform the work or secure material for less than the lowest bid, it may proceed to do so. (d) (I) To enter into contracts and agreements affecting the affairs of the special district except as otherwise provided in this part 10, including contracts with the United States and any of its agencies or instrumentalities. Except in cases in which a special district will receive aid from a governmental agency or purchase through the state purchasing program, a notice shall be published for bids on all construction contracts for work or material, or both, involving an expense of sixty thousand dollars or more of public moneys. The special district may reject any and all bids, and, if it appears that the special district can perform the work or secure material for less than the lowest bid, it may proceed to do so.    No contract for work or material including a contract for services, regardless of the amount, shall be entered into between the special district and a member of the board or between the special district and the owner of twenty-five percent or more of the territory within the special district unless a notice has been published for bids and such member or owner submits the lowest responsible and responsive bid.       To borrow money and incur indebtedness and evidence the same by certificates, notes, or debentures, and to issue bonds, including revenue bonds, in accordance with the provisions of part 11 of this article, and to invest any moneys of the special district in accordance with part 6 of article 75 of title 24, C.R.S.;    To acquire, dispose of, and encumber real and personal property including, without limitation, rights and interests in property, leases, and easements necessary to the functions or the operation of the special district; except that the board shall not pay more than fair market value and reasonable settlement costs for any interest in real property and shall not pay for any interest in real property which must otherwise be dedicated for public use or the special district's use in accordance with any governmental ordinance, regulation, or law;    To refund any bonded indebtedness as provided in part 13 of this article or article 54 or 56 of title 11, C.R.S.;    To have the management, control, and supervision of all the business and affairs of the special district as defined in this article and all construction, installation, operation, and maintenance of special district improvements;    To appoint, hire, and retain agents, employees, engineers, and attorneys;      To fix and from time to time to increase or decrease fees, rates, tolls, penalties, or charges for services, programs, or facilities furnished by the special district; except that fire protection districts may only fix fees and charges as provided in section 32-1-1002 (1)(e). The board may pledge such revenue for the payment of any indebtedness of the special district. Until paid, all such fees, rates, tolls, penalties, or charges shall constitute a perpetual lien on and against the property served, and any such lien may be foreclosed in the same manner as provided by the laws of this state for the foreclosure of mechanics' liens. (j) (I) To fix and from time to time to increase or decrease fees, rates, tolls, penalties, or charges for services, programs, or facilities furnished by the special district; except that fire protection districts may only fix fees and charges as provided in section 32-1-1002 (1)(e). The board may pledge such revenue for the payment of any indebtedness of the special district. Until paid, all such fees, rates, tolls, penalties, or charges shall constitute a perpetual lien on and against the property served, and any such lien may be foreclosed in the same manner as provided by the laws of this state for the foreclosure of mechanics' liens.    Notwithstanding any other provision to the contrary, the board may waive or amortize all or part of the tap fees and connection fees or extend the time period for paying all or part of such fees for property within the district in order to facilitate the construction, ownership, and operation of affordable housing on such property, as such affordable housing is defined by resolution adopted by the board. However, the board shall have the authority to condition such waiver, amortization, or extension upon the recordation against the property of a deed restriction, lien, or other lawful instrument requiring the payment of such fees in the event that the property's use as affordable housing is discontinued or no longer meets the definition of affordable housing as established by the board.       To furnish services and facilities without the boundaries of the special district and to establish fees, rates, tolls, penalties, or charges for such services and facilities;    To accept, on behalf of the special district, real or personal property for the use of the special district and to accept gifts and conveyances made to the special district upon such terms or conditions as the board may approve;    To adopt, amend, and enforce bylaws and rules and regulations not in conflict with the constitution and laws of this state for carrying on the business, objects, and affairs of the board and of the special district;    To have and exercise all rights and powers necessary or incidental to or implied from the specific powers granted to special districts by this article. Such specific powers shall not be considered as a limitation upon any power necessary or appropriate to carry out the purposes and intent of this article.    To authorize the use of electronic records or signatures and adopt rules, standards, policies, and procedures for use of electronic records or signatures pursuant to article 71.3 of title 24, C.R.S.         The governing body of any special district furnishing domestic water or sanitary sewer services directly to residents and property owners within or outside the district may fix or increase fees, rates, tolls, penalties, or charges for domestic water or sanitary sewer services only after consideration of the action at a public meeting held at least thirty days after providing notice stating that the action is being considered and stating the date, time, and place of the meeting at which the action is being considered. Notice must be provided to the customers receiving the domestic water or sanitary sewer services of the district in one or more of the following ways:   Mailing the notice separately to each customer of the service on the billing rolls of the district;    Including the notice as a prominent part of a newsletter, annual report, billing insert, billing statement, letter, or other notice of action, or other informational mailing sent by the special district to the customers of the district;    Posting the information on the official website of the special district if there is a link to the district's website on the official website of the division; or    For any district that is a member of a statewide association of special districts formed pursuant to section 29-1-401, C.R.S., by mailing or electronically transmitting the notice to the statewide association of special districts, which association shall post the notice on a publicly accessible section of the association's website.       The power to fix or increase fees, rates, tolls, penalties, or charges for domestic water or sanitary sewer services is a legislative power of the district board and is not changed by the provisions of this section.    No action to fix or increase fees, rates, tolls, penalties, or charges for domestic water or sanitary sewer services may be invalidated on the grounds that a person did not receive the notice required by this section if the district acted in good faith in providing the notice. Good faith is presumed if the district provided the notice in one or more of the ways listed in paragraph (a) of this subsection (2).       The governing body of a special district may conduct or participate in forest health projects, as defined in section 37-95-103 (4.9), within and outside the district boundaries that benefit district property or improvements. The governing body of any special district that provides fire protection services may also conduct or participate in such forest health projects within and outside the district boundaries that reduce the risk of wildfire within the district. To secure and protect an adequate supply of water, the governing body of any special district that provides water services may also conduct or participate in such forest health projects within and outside the district boundaries that reduce the risk of wildfire within the watersheds within which the district collects, transports, or stores its water supply.     History. Source: L. 81: Entire article R&RE, p. 1589, § 1, effective July 1. L. 89: (1)(e) amended, p. 1117, § 34, effective July 1. L. 91: (1)(d) and (1)(f) amended, p. 789, § 18, effective June 4. L. 99: (1)(o) added, p. 1348, § 8, effective July 1; (1)(j) amended, p. 555, § 1, effective August 4. L. 2002: (1)(o) amended, p. 858, § 9, effective May 30. L. 2006: (1)(d)(I) amended, p. 345, § 1, effective August 7. L. 2013: (2) added,(HB 13-1186), ch. 102, p. 323, § 1, effective August 7. L. 2021: (3) added,(HB 21-1008), ch. 159, p. 906, § 6, effective May 20.    Editor's note:   The provisions of this section are similar to provisions of several former sections as they existed prior to 1981. For a detailed comparison, see the comparative tables located in the back of the index.   Cross references:   For foreclosure of mechanics' liens, as provided in subsection (1)(j), see article 22 of title 38; for composition or adjustment of indebtedness, see part 14 of this article.   ANNOTATION   The statutory provision authorizing special districts to set their own fees for services is not an unconstitutional delegation of legislative authority. Statutory scheme, in conjunction with a special district's rules and regulations, is sufficient to prevent unnecessary and uncontrolled exercise of discretionary power by the special district. Krupp v. Breckenridge Sanitation Dist., 1 P.3d 178 (Colo. App. 1999).   A special district may assign its right to receive revenue from development fees to a private party. Such an assignment falls within a special district's statutory authority to dispose of property under subsection (1)(f). SDI, Inc. v. Pivotal Parker Commercial, LLC, 2014 CO 80, 339 P.3d 672.   Underlying purpose of this section is to protect property holders and taxpayers. The advantage to be derived by individual bidders is merely incidental. Intermountain Sys. v. Gore Valley/Big Horn Water Dists., 654 P.2d 872 (Colo. App. 1982).   If taxes have been improperly imposed against property owned by a park and recreation district, it is entitled to pursue a remedy therefor to the same extent as any other owner. S. Suburban Park & Recreation Dist. v. Bd. of Assessment Appeals, 894 P.2d 771 (Colo. App. 1994).   A special district has the power to enter into contracts and agreements affecting its affairs, however, if a contract is beyond the scope of the special district's constitutional or statutory powers, the contract is ultra vires and consequently void. Black v. First Fed. Sav. and Loan, 830 P.2d 1103 (Colo. App. 1992).   Liability for emergency services. A water and sanitation district can be held liable for additional services performed, valued at more than $5,000, although no competitive bids are obtained, when an emergency situation exists which demands immediate attention, and which threatens the public health and safety of a community. Martin Excavating, Inc. v. Tyrollean Terrace Water & San. Dist., 671 P.2d 1329 (Colo. 1983) (decided under former § 32-4-113 ).   Action to challenge propriety of award limited. This section creates a cause of action to challenge the propriety of an award only in taxpayers and property owners within the geographic limits of the contracting governmental body, and not in the unsuccessful bidder. Intermountain Sys. v. Gore Valley/Big Horn Water Dists., 654 P.2d 872 (Colo. App. 1982).   Lowest bidder cannot compel contract. The lowest bidder cannot compel the issue of a writ of mandamus to force the officers of a municipality to enter into a contract with him. Intermountain Sys. v. Gore Valley/Big Horn Water Dists., 654 P.2d 872 (Colo. App. 1982).   Special district, as a political subdivision of the state, possesses only those powers that are expressly conferred upon it by the constitution and by statute and such incidental implied powers as are reasonably necessary to carry out the express powers so conferred. Romer v. Fountain Sanitation Dist., 898 P.2d 37 (Colo. 1995).   Power to “sue and be sued” granted in subsection (1)(c) is not a grant of authority to file a civil action against the state for declaratory relief. Romer v. Fountain Sanitation Dist., 898 P.2d 37 (Colo. 1995).   This section authorizes a special district to collect tolls for the use of public roads which it is obligated to maintain. Wick v. Pueblo W. Metro. Dist., 789 P.2d 457 (Colo. App. 1989).   Although a special district has the power to enter into contracts, if the contract is beyond the scope of its constitutional or statutory powers, the contract is ultra vires and void. Black v. First Fed. Sav. & Loan, 830 P.2d 1103 (Colo. App. 1992).   Under this section, a special district may enter into a master lease. But, where the lease does not provide for cancellation by the special district during the term of the lease, the lease violates the constitutional prohibition against governmental debt by loan and is therefore ultra vires and void. Black v. First Fed. Sav. & Loan, 830 P.2d 1103 (Colo. App. 1992).   Where a special district was also a limited partner, it was entitled to contract with itself. However, where the master lease entered into by the special district amounted to an unconstitutional governmental debt by loan, the special district's master lease was ultra vires and void. Black v. First Fed. Sav. & Loan, 830 P.2d 1103 (Colo. App. 1992).   Special district has authority under subsection (1)(f) to regulate the use of and access to property it owns. A special district's authority to regulate use of its property and thereby exercise rights as a property owner is implied by the powers to acquire, own, and dispose of that property. Aspen Springs Metro. Dist. v. Keno, 2015 COA 97 , 369 P.3d 716.   The broad, general powers set forth in this section are sufficient to constitute general authorization for a special district to file a chapter 9 petition in bankruptcy. In re Villages at Castle Rock Metro. Dist. No. 4, 145 B.R. 76 (Bankr. D. Colo. 1990 ).   Language in this section authorizing special districts to charge fees for services furnished by the district implicitly requires that those fees be reasonable in light of the services actually furnished by the district. Krupp v. Breckenridge Sanitation Dist., 1 P.3d 178 (Colo. App. 1999).   Statutory lien held by sanitation district that attached to debtors' real property pursuant to subsection (1)(j) survived debtors' bankruptcy proceedings. The question whether the district's lien was extinguished by the bankruptcy proceedings is governed by 11 U.S.C. § 1141 (c), which provides an exception to the general rule that liens pass through bankruptcy unaffected. Because the debtors' plan of reorganization made no provision for the district's lien, the lien was not extinguished pursuant to § 1141 (c) upon confirmation of the plan. 250 Gregory LLC v. Black Hawk/Central City Sanitation Dist., 77 P.3d 841 (Colo. App. 2003).   Applied in Groditsky v. Pinckney, 661 P.2d 279 (Colo. 1983); Valley Hous. & Dev. Corp. v. Ridges Metro. Dist., 753 P.2d 801 (Colo. App. 1988).