Bradbury & Stamm Construction v. Board of County Commissioners of Bernalillo County

2001 NMCA 106, 35 P.3d 298, 131 N.M. 293
CourtNew Mexico Court of Appeals
DecidedJuly 10, 2001
Docket21,052
StatusPublished
Cited by3 cases

This text of 2001 NMCA 106 (Bradbury & Stamm Construction v. Board of County Commissioners of Bernalillo County) is published on Counsel Stack Legal Research, covering New Mexico Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bradbury & Stamm Construction v. Board of County Commissioners of Bernalillo County, 2001 NMCA 106, 35 P.3d 298, 131 N.M. 293 (N.M. Ct. App. 2001).

Opinion

OPINION

BOSSON, Chief Judge.

{1} Bernalillo County (the County) appeals the district court’s decision that it must grant a preference to New Mexico contractors (the “resident preference”) in selecting the low bidder for the County’s new jail project. See NMSA 1978, § 13-4-2(E) (1997). The County argues that the New Mexico legislature granted the County sole discretion to determine when it is “practicable” to apply the resident preference, and in this case, the County decided that it was not. See NMSA 1978, § 13-4-1 (1984). The County also contends that the district court should not have addressed the resident preference issue because the resident contractor waived its right to appeal by failing to comply with administrative procedures regarding bid protests. We disagree with the County and hold that the resident preference formula set forth in Section 13-4-2(E) applies to all bids for public works contracts. Because Plaintiff Bradbury & Stamm substantially complied with administrative procedures, we affirm the decision of the district court.

BACKGROUND

{2} Faced with a federal court order to reduce inmate overcrowding at the Bernalillo County Detention Center, the County decided to build a new jail. To save money, the County decided not to grant a resident preference to New Mexico contractors who bid on the project. According to statute, that preference would have given New Mexico contractors a bidding advantage by multiplying their bids by a factor of .95 before comparing them to the bids from out-of-state contractors. Section 13-4-2(E). Thus, a New Mexico contractor could have won the contract over an out-of-state contractor with the low bid, if the resident contractor’s bid was within 5 percent of the low bid.

{3} The County’s reasons for bypassing the resident preference were twofold. First, the resident preference would cost too much. The County felt it was in “grave danger” of exceeding the appropriated budget for the project, which was over $31 million. Second, the County estimated that the 5 percent resident preference would cost taxpayers over $1.5 million in extra expense if applied to a contract of that size. The County also reasoned that the resident preference would decrease the number of out-of-state contractors bidding on the project which, in turn, would decrease the incentive to bid competitively.

{4} When the bids were opened on October 4, 1999, the County determined that an Arizona company had entered the low bid. The Arizona company bid $25,032,000, and Bradbury & Stamm, a resident contractor, bid $25,232,134. Both bids were over $5 million below what the County had appropriated for the project. Because the percentage difference between the bids was much less than 5 percent, Bradbury & Stamm would have won the contract if the resident preference had been applied.

{5} After a protest, the district court decided that the resident preference was mandatory for public works contracts and that the County did not have discretionary authority to waive the rule. The district court remanded the case to the County with instructions to apply the resident preference to the bids before awarding the contract.

{6} Instead of applying the resident preference to the bids, the County investigated and ruled on a second, unrelated protest against the Arizona contractor. The County determined that the second protest was meritorious, and disqualified the Arizona contractor which meant that the bid went to Bradbury & Stamm. The County then appealed the district court’s decision, which we treated as a petition for writ of certiorari and granted. Cf. Hyden v. N.M. Human Servs. Dep’t, 2000-NMCA-002, ¶¶ 11-13, 128 N.M. 423, 993 P.2d 740.

DISCUSSION

{7} Resolution of this appeal requires deciding questions of mootness, statutory construction, and administrative procedure. We begin our discussion by addressing an outstanding appellate motion filed by Bradbury & Stamm, requesting that we dismiss the appeal on the ground of mootness.

Mootness

{8} Although Bradbury & Stamm successfully litigated the resident preference issue in the district court, the County ignored the court order and awarded the contract to Bradbury & Stamm on the basis of the second protest. Thus, the resident preference was ultimately not an actual factor in awarding the contract, and we agree that there no longer appears to be an actual controversy between the parties regarding the resident preference statute. See Snodgrass v. Tularosa Bd. of Educ., 74 N.M. 93, 95, 391 P.2d 323, 324 (1964) (declining to accept jurisdiction when deciding the case “would be academic and would determine no issues between the parties”).

{9} The County admits that no specific controversy now exists regarding the jail contract, but argues that the outstanding order of the district court, entered while an actual controversy did exist, could have a preclusive effect on the County when faced with similar situations arising in future public works contracts. See State ex rel. Blanchard v. City Comm’rs, 106 N.M. 769, 770, 750 P.2d 469, 470 (Ct.App.1988); see also Atchison, Topeka & Santa Fe Ry. Co. v. State Corp. Comm’n, 79 N.M. 793, 794, 450 P.2d 431, 432 (1969) (observing if an “order appealed from has any vitality and may be given implementation, even temporarily, the case is not moot and is entitled to consideration”). The County also suggests that we vacate the district court’s outstanding order to avoid any future effect upon the County. We decline the County’s invitation to do so. As the above cases demonstrate, New Mexico courts are inclined to resolve viable, outstanding orders on their merits, rather than dismiss a case as moot and vacate a lower court order.

{10} The County also asserts that the issues before us are of substantial public importance and, as such, should be excepted from the doctrine of mootness. See City of Las Cruces v. El Paso Elec. Co., 1998-NMSC-006, ¶ 18, 124 N.M. 640, 954 P.2d 72 (observing that the Court will make an exception to the mootness rule if “an issue of substantial public interest is presented”); Riesenecker v. Arkansas Best Freight Sys., 110 N.M. 451, 453, 796 P.2d 1147, 1149 (Ct. App.1990) (“[E]ven when events have mooted the dispute between the parties, New Mexico courts possess discretion whether to proceed to decide appellate issues that are matters of substantial public interest.”).

{11} We note that this dispute is not unique to the County. It involves all governmental entities and their competing legal obligations to resident New Mexico contractors and to the public at large. Thus, this dispute potentially has a far-ranging impact on public finance and public administration. See Mowrer v. Rusk, 95 N.M. 48, 51, 618 P.2d 886, 889 (1980) (listing criteria to consider in determining “ ‘he requisite degree of public interest’ ” (quoting People v. Ldbrenz, 411 Ill.

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Bluebook (online)
2001 NMCA 106, 35 P.3d 298, 131 N.M. 293, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bradbury-stamm-construction-v-board-of-county-commissioners-of-nmctapp-2001.