Lake Mohave Boat Owners Association v. National Park Service Alan O'Neill Stanley T. Albright Seven Resorts Inc. Bruce Babbitt

138 F.3d 759, 28 Envtl. L. Rep. (Envtl. Law Inst.) 21016, 98 Daily Journal DAR 2234, 98 Cal. Daily Op. Serv. 1607, 1998 U.S. App. LEXIS 3879, 1998 WL 95260
CourtCourt of Appeals for the Ninth Circuit
DecidedMarch 6, 1998
Docket97-55400
StatusPublished
Cited by6 cases

This text of 138 F.3d 759 (Lake Mohave Boat Owners Association v. National Park Service Alan O'Neill Stanley T. Albright Seven Resorts Inc. Bruce Babbitt) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lake Mohave Boat Owners Association v. National Park Service Alan O'Neill Stanley T. Albright Seven Resorts Inc. Bruce Babbitt, 138 F.3d 759, 28 Envtl. L. Rep. (Envtl. Law Inst.) 21016, 98 Daily Journal DAR 2234, 98 Cal. Daily Op. Serv. 1607, 1998 U.S. App. LEXIS 3879, 1998 WL 95260 (9th Cir. 1998).

Opinion

WALLACE, Circuit Judge:

In this case, we are asked to review an agency’s approval of rates charged by a private concessioner operating a marina in a national park. The district court exercised jurisdiction under the Administrative Procedure Act, 5 U.S.C. §§ 551-559, and 28 U.S.C. § 1331. We have jurisdiction over this timely filed appeal pursuant to 28 U.S.C. § 1291, and we affirm the district court’s summary judgment.

I

The National Park System Concessions Policy Act (Act), 16 U.S.C. §§ 20, 20a-g, authorizes the Secretary of the Interior (Secretary) to contract with private concessioners to provide services and facilities in national parks under the supervision of the National Park Service (Service). The Secretary is charged with regulating the rates charged by concessioners so as to provide them with a reasonable opportunity for profit. 16 U.S.C. § 20b(b).

In determining whether a concessioner’s rates and charges are reasonable, the Secretary is to compare them “with those current for facilities and services of comparable character under similar conditions, with due consideration for length of season, provision for peakloads, average percentage of occupancy, accessibility, availability and costs of labor and materials, type of patronage, and other factors deemed significant by the Secretary.” 16 U.S.C. § 20b(e).

Concessioner Seven Resorts, Inc. (Resort) contracted with the Service to provide services and facilities at Lake Mohave, which is part of the Lake Mead National Recreation Area. The facility at issue is the Resort’s marina, which provides docking slips for houseboats and recreational boats. The Resort charges individual boat owners monthly docking fees based on the length of the boat or of the slip, whichever is longer.

On December 11, 1987, the Resort sought the Secretary’s approval to raise the docking fees from $4.00 per foot to $5.50 per foot. The Secretary approved the rate increase in January 1988. Lake Mohave Boat Owners Association (Association), representing certain boat owners (Owners), opposed the rate increase on the ground that the Secretary’s calculation of reasonable rates was procedurally and substantively flawed. Despite the Association’s opposition, the Secretary refused a rate rollback in July 1989.

On October 10, 1990, the Resort requested a rate increase from $5.50 per foot to $6.00 per foot, which the Secretary approved in December 1990. The Resort requested another rate increase in 1992, to $6.25 per foot, but the Secretary denied that request.

As a result of a March 1994 preseason evaluation, the Secretary informed the Resort that the marina dock needed maintenance work, as there were loose nuts and separations between boards. By June of that year, the Resort had addressed these concerns and the Secretary approved its request for a rate increase to $6.25 per foot.

The Association filed this action in federal court in March 1990 on behalf of its members, seeking a rollback of rates to those of January 1,1988, and restitution of all monies paid in excess of those rates. The district court, among other decisions, declared the rate increases invalid on the ground that the Secretary’s failure to publish the Service’s internal guidelines in the Federal Register violated the Owners’ procedural due process *762 rights. The court granted the Association damages and restitution.

On appeal, we held that the Association could sue for prospective relief on behalf of its members, but lacked standing to bring a claim for restitution on their behalf. We also held that the Service was not required to publish its guidelines. We reversed and remanded for a determination of whether the Secretary acted arbitrarily or capriciously in approving the rate increases. Lake Mohave Boat Owners Ass’n v. National Park Service, 78 F.3d 1360, 1367 (9th Cir.1995). On remand, no order substituting or adding the Owners was entered. Rather, the Association filed a Third Amended Complaint in which the Owners were ostensibly treated as plaintiffs, an amendment unopposed and not subsequently objected to by the Service. The district court dismissed the Association, and entered summary judgment against the Owners, holding that there was no triable issue of fact that the Secretary had acted arbitrarily or capriciously.

II

We review the district court’s summary judgment de novo, which in this ease means “that we view the case from the same position as' the district court.” Marathon Oil Co. v. United States, 807 F.2d 759, 765 (9th Cir.1986). We will uphold the Secretary’s decision “unless it is determined to be arbitrary, capricious, an abuse .of discretion, or contrary to law.” Id., citing 5 U.S.C. § 706(2)(A). With this deferential .standard of review in mind, we turn to the Owners’ arguments.

The Owners first contend that, in approving the Resort’s 1988, 1990, and 1994 rate increase requests, the Secretary acted arbitrarily and capriciously in violating four separate internal procedures: (1) changing the list of marinas in 1988 that it used against which to compare the Resort; (2) faffing to index the rate increases in 1988; (3) converting “per slip” fees into “per foot” prices; - and (4) abandoning the use of the “averaging” methodology. As to these issues, there is no material fact in dispute.

A.

The Owners argue that in 1988 the Secretary disregarded marinas that had been deemed comparable the previous year. From 1978 to 1987, the Secretary relied on a 1978 survey of regional marina facilities for comparison purposes.' By 1988, when the Resort requested a rate increase, the Secretary concluded that the 1978 survey had to be updated because a number of the marinas in that survey were no longer comparable to the Resort. There was no clear error of judgment on the part of the Secretary in disregarding marinas that are deemed no longer comparable. Therefore, we hold that the decision to disregard marinas that had been used previously but were no longer comparable was neither arbitrary nor capricious.

B.

The Owners next contend that the Secretary’s decision not to use “indexing” was arbitrary and capricious. The Service’s manual (NPS-48) describes indexing as “an easily-implemented procedure for approving or adjusting concessioner prices on an interim basis.” Contrary to the Owners’ assertion, indexing was not the only method available to the Secretary in 1988.

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138 F.3d 759, 28 Envtl. L. Rep. (Envtl. Law Inst.) 21016, 98 Daily Journal DAR 2234, 98 Cal. Daily Op. Serv. 1607, 1998 U.S. App. LEXIS 3879, 1998 WL 95260, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lake-mohave-boat-owners-association-v-national-park-service-alan-oneill-ca9-1998.