Brutsche v. Coon Rapids

272 N.W. 624, 223 Iowa 487
CourtSupreme Court of Iowa
DecidedApril 6, 1937
DocketNo. 43865.
StatusPublished
Cited by7 cases

This text of 272 N.W. 624 (Brutsche v. Coon Rapids) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brutsche v. Coon Rapids, 272 N.W. 624, 223 Iowa 487 (iowa 1937).

Opinion

Mitchell, J.

Three citizens of Coon Rapids, Iowa, users of electric energy in their respective homes, purchasing same from the manufacturer thereof at a rate fixed by the town of Coon Rapids, commenced this action in equity for themselves and all others similarly situated, to enjoin the construction of a complete municipal electric light plant by the incorporated town of Coon Rapids, pursuant to the provisions of the Simmer law. Fairbanks, Morse & Company filed a petition of intervention. After a hearing the trial court dismissed plaintiffs’ petition and held that they had not shown themselves entitled to the relief prayed. Plaintiffs have appealed to this court.

Coon Rapids has no generating or distributing facilities but is served by the Iowa Electric Light and Power Company, which has both in that town. On the 15th day of February, 1934, there was submitted to the qualified electors of Coon Rapids the question of the construction of a municipal light and power plant. “Shall the town of Coon Rapids, Iowa, Carroll County, erect and construct a municipal light plant, at a cost of not to exceed the sum of $114,000, to be paid out of the future earnings of the plant?” A majority of the duly qualified electors voted in favor of constructing a municipal light and power plant. Thereafter a contract was let to Fairbanks, Morse Construction Company, which contract was held void by this court in a cause entitled,." Brutsche et al. vs. Town of Coon Rapids et al., " and reported in 220 Iowa 1295, 264 N. W. 696.

On March 25, 1936, the specifications calling for bids for the furnishing of a complete municipal light and power plant for the town of Coon Rapids were filed in the office of the city clerk. They were introduced at the trial of this cause as Exhibit C and will hereafter be thus referred to. Within the time and as required by law there was published a notice, stating that a meeting would be held on the 28th day of April, 1936, at 2 p. m. in the town hall, at which time and place objections would be heard and bids received, all in accordance with sections 6134-dl to *489 6134-d7 of the Code of Iowa for 1935, otherwise known as the “Simmer” law.

Pursuant to the notice published, there were duly filed objections to any offer, proposal or bid submitted at the meeting of the city council on April 28, 1936, which objections were signed by approximately two hundred of the taxpayers, citizens, water and electric users of the town of Coon Rapids.

At the meeting these objections were read and counsel representing the objectors were given permission orally to object. The city council thereafter overruled the objections and passed a resolution, adopting the plans and specifications as filed. There were several bids on file. All of them were opened and considered. By resolution of the city council the bid of Fairbanks, Morse & Company was accepted and contract awarded to that company, and all other bids and proposals were rejected. This action to enjoin the city counsel having been commenced before the letting of the contract, the contract was not then executed.

The appellants argue that the lower court erred in not holding that the specifications were so indefinite, sketchy and lacking in detail as to furnish no common basis for the submission of competitive bids; that Coon Rapids was without power to make any contract under the proceedings had, because, among other things, there was no determination by the council, in advance of the advertisement, of the kind of materials to be used in the proposed work; that one of the respects in which the specifications were not precise and definite, was in respect to the materials of which the engine was to be made; that due to the failure to specify the kinds of material or the standard to be used, there could not be competitive bidding. Appellants complain bitterly because the specifications do not name the materials out of which are to be made the various parts of the Diesel engines to be used in the light plant. It is their contention that before you can have competitive bidding it is necessary that the engineer employed by the municipality require that the materials used, the workmanship and efficiency of the engines, auxiliary equipment, machinery and appliances used, shall conform to the minimum standards prescribed by various national codes ; that when that is done there is a common basis and a fixed standard to which all bidders are required to respond, and any bidders whose engines, auxiliary equipment, generators, accessories and switchboard do not equal the minimum standards *490 fixed by these codes, is not entitled to have his bid considered.

The necessity for competitive bidding is so settled now that it cannot be questioned. Under the Simmer law this court has repeatedly held that competitive bidding is required. In what is known as the Grand Junction case (Iowa Electric Light & Power Co. v. Incorporated Town of Grand Junction), 216 Iowa 1301, on page 1303, 250 N. W. 136, 137, this court said:

“This statute was undoubtedly enacted for the purpose of obtaining competitive bidding and to enable municipal corporations to secure the best bargain for the least money. Such a statute clearly required competitive bidding.”

And continues on this same page:

“In our opinion, for every purpose of genuine competition between bidders there is and can be no such thing as too great particularity in the description of the subject concerning which competition is invited. In order that, bidders may really compete, they must have in mind precisely the same thing.”

The legislature may overrule the result reached in the Grand Junction case (altho some of us dissented), but this court ' does not recede from the statements of the law therein contained concerning competitive bidding. The necessity for competitive bidding is too apparent to leave room for argument, and in order to have competitive bidding the respective parties desiring to bid must know upon what they are bidding-.

With these rules in mind let us look at the record before us.

The specifications known in the record.as Exhibit C and set out in the abstract, cover sixty-three printed pages. The notice was published in the Coon Rapids Enterprise and the Des Moines Register, and there appears to be no question that the proper notice was given. These specifications and the accompanying plans, Exhibit C-l, call for bids on the complete furnishing of the light and power system of Coon Rapids, consisting of:

(a) Power plant building, described in section 1 of Exhibit C, comprising eight and a half pages;

(b) Diesel engine units, described in section 2 of Exhibit C, comprising eleven pages;

(c) Switchboard and power wiring, described in section 3 of Exhibit C, comprising ten pages;

*491 (d) Electric distribution system, described in section 4 of Exhibit C, comprising nine pages;

(e) Building site, described in specifications under “Instructions to Bidders” as: The south one-half of lots 1, 2, and 3, block 21, Milwaukee Land Company addition to the town of Coon Rapids, upon which the town had an option to purchase at a price of $1,000.

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Bluebook (online)
272 N.W. 624, 223 Iowa 487, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brutsche-v-coon-rapids-iowa-1937.