Flying W Ranch claims Colorado Springs City Council biased in controversial water tank lawsuit

COLORADO SPRINGS, Colo. (KRDO) - Flying W Ranch has filed a lawsuit against the City of Colorado Springs, claiming the city council wasn’t impartial when voting on a controversial CSU water tank.

That Colorado Springs Utilities water tank, located on Wilson Road in the Mountain Shadows neighborhood, was approved by the city back in June 2022 to be 45 feet tall, slightly taller than the existing water tank next to it.

However, residents soon noticed it was built taller than what was approved and notified the city. The city issued a stop work order but the tank was practically finished, standing 60 feet tall. CSU then filed a major modification to keep the tank at 60 feet. That modification was denied by the planning commission but then appealed to the Colorado Springs City Council. On November 14, the city council overturned the planning commission’s decision and allowed CSU to keep the tank at 60 feet.

“Do you know if you and I built something 45% outside of what we were given the ability to do, you would be taking it down the next day,” said Leigh Ann Wolfe, the owner of the Flying W Ranch. “But that's not what Utilities wants to do. They just want what they want. They don't care about the neighbors. They don't care about the Flying W Ranch.”

Flying W Ranch, a western event venue near the Mountain Shadows neighborhood, and Larry Starr, who lives right next to the water tank, sued the city, stating the council shouldn't have voted on the appeal due to a conflict of interest.

“They're here to have an old West event, and this is the first thing that they see,” Wolfe said, pointing to the water tank. “It's not even that. It's just that our rights as citizens have been so taken away. They just don't count for anything.”

In a brief filed on April 17, attorneys for Flying W Ranch explained city council members also sit on CSU’s board of directors, “ resulting in violation of the Fourteenth Amendment’s constitutional due process rights of the Plaintiffs and other interested parties.”

“Massive conflict of interest,” Wolfe said. “They have to vote in favor of Utilities. There is a mandate that says that the city council has to act in the best interests of Utilities.”

The city’s code of ordinances states that the council in its role at the CSU board “must govern Colorado Springs Utilities in accord with sound business principles, in a manner that supports the long-term sustainability of the enterprise and maximizes value to citizens.”

According to the lawsuit documents, the city council and CSU adopted an “Excellence in Governance Policy Manual,” which was most recently updated in February. It states, “The Utilities Board must fulfill fiduciary duties by acting in the best interest of the organization and owners and comply with statutory and regulatory duties.”

Flying W Ranch said a closed-door meeting was held the day before the council’s vote on the water tank. According to court documents, the city’s attorney, which represents both the city and CSU, and Travas Deal, the CEO of CSU, were at the meeting to discuss the conflict of interest issue.

“The problem, of course, is compounded by the fact that both the City Council and CSU are and were represented by attorneys from the same City Attorney’s Office,” the brief said.

Attorneys for Flying W Ranch go on to quote the City’s Code of Ethics, which states the city “should strive to avoid any conduct creating the appearance of impropriety.”

The city declined an interview due to pending litigation. However, court documents in response to the lawsuit said the city council “did not exceed its jurisdiction or abuse its discretion” and “City Council members are entitled to a presumption of integrity, honesty and
impartiality when acting in a quasi-judicial capacity.”

The city must file its argument by May 28. If a judge sides with Flying W Ranch, the city council’s vote won’t count. Instead, the planning commission’s vote to deny the 60-foot modification would stand. However, CSU could then appeal to the District Court.

“I feel like the citizens of Colorado Springs should care about this,” Wolfe said. “They should care that Utilities just does what they want because they have the backing of the city council. They're all in it together.”