Hylton v. Mayor and City Council of Baltimore

300 A.2d 656, 268 Md. 266, 1972 Md. LEXIS 649
CourtCourt of Appeals of Maryland
DecidedFebruary 26, 1973
Docket[No. 298, September Term, 1972.]
StatusPublished
Cited by15 cases

This text of 300 A.2d 656 (Hylton v. Mayor and City Council of Baltimore) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hylton v. Mayor and City Council of Baltimore, 300 A.2d 656, 268 Md. 266, 1972 Md. LEXIS 649 (Md. 1973).

Opinion

Murphy, C. J.,

delivered the opinion of the Court.

This appeal presents the question whether a contract between the Mayor and City Council of Baltimore (the City) and Monsanto Enviro-Chem Systems, Inc. (EnviroChem) for the construction of a resource recovery solid waste disposal system was concluded in violation of the competitive bidding requirements contained in § 4 of Article VI of the City’s Charter. The lower court (Ross, J.) determined that there was no such violation, as claimed by appellants, taxpayers and residents of Baltimore City. The appeal to us is from the court’s decree declaring the contract valid and binding upon the parties, notwithstanding the fact that it had been negotiated and executed without competitive bidding. 1

By the terms of the contract, Enviro-Chem agreed, for $14,742,000, to construct a resource recovery solid waste disposal plant for the City utilizing its “Landgard” non-patented proprietary process for disposing of one thou *269 sand tons per day of garbage and trash by pyrolysis 2 and recovering saleable by-products therefrom (resource recovery), viz., usable steam, glassy aggregate and ferrous metals. The agreement specified that $6,000,000 of the contract price would be paid by the City from grant funds which it would receive from the Environmental Protection Agency (EPA) of the United States; that $4,000,000 would be paid from funds received by the City through the Maryland Environmental Service (MES), an agency of the State of Maryland; and that the remainder of the contract price would be paid by the City from its own resources.

The contract, which was finalized on December 8, 1972, was executed against this factual background: In an effort to find a satisfactory solution to its problem of disposing annually of approximately 540,000 tons of garbage and trash, the City initiated an in-depth study in early 1970 of all available technology in the field of solid waste disposal; the study included on-site investigations of operational facilities throughout the nation. As a result, the City prepared specifications and sought competitive bids in 1970 for a seventeen-year service contract for a one thousand ton per day solid waste disposal system, operational within State pollution control requirements. The five bids received by the City failed to comply with the specifications set forth in the bidding documents and all bids were rejected. The City thereafter explored the possibility that under the Solid Waste Disposal Act of 1965, as amended by the Resource Recovery Act of 1970, 42 U.S.C. §§ 3251, et seq. (1970), it could obtain a grant of funds from the federal government to assist it in constructing its own solid waste disposal system. By those enactments, the Congress of the *270 United States recognized that the problem of solid waste disposal was a matter of national concern necessitating federal action through financial and technical assistance to municipalities “in the development, demonstration, and application of new and improved methods and processes to reduce the amount of waste and unsalvageable materials and to provide for proper and economical solid-waste disposal practices.” 42 U.S.C. § 3251(a) (6). Acting through EPA the federal government was empowered to make grants to selected municipalities for the demonstration of .resource recovery solid waste disposal systems, the grants being limited in amount to 75% of project cost, including costs of design, construction, operation and maintenance. 42 U.S.C. § 3254b. The grants were in furtherance of the congressional purpose “to promote the demonstration, construction, and application of solid waste management and resource recovery systems which preserve and enhance the quality of air, water, and land resources.” 42 U.S.C. § 3251(b) (1). In addition to conditions imposed by the provisions of 42 U.S.C. § 3254b (b) (1) and 40 C.F.R. §§ 30.100, et seq. (1972), proposals to be submitted by municipalities applying for grants were to be judged on requirements and criteria specified in an EPA document entitled “Instructions for Submitting a Pre-application for a Resource Recovery Systems Demonstration Grant” (the EPA Instructions). Under EPA standards, the proposed project could not duplicate a resource recovery system that had already been developed and operated at full scale; however, it could not be an untested system because the EPA Instructions provided that:

“The feasibility of the unit processes of the proposed system must have been satisfactorily demonstrated in a pilot plant application at a sufficient rate to enable a reliable projection of the technical and economic performance of the proposed systems to be made. The operation must have been documented in a formal technical report.”

*271 The EPA Instructions further provided that a minimum of 60% (by dry weight) of the solid waste input must be converted to useable energy or recovered as saleable materials; that purchase commitments, in the form of contractually binding purchase agreements or letters of intent, for at least 50% of the saleable materials must be included with the grant application; and that a market analysis defining markets for saleable products, particularly those for which no purchase commitments were included in the proposal, should be presented.

The action taken by the City to obtain an EPA demonstration grant was thoroughly documented by F. Pierce Linaweaver, the City’s Director of Public Works, who, in an affidavit included in the record before us, stated: 3

“It then became necessary for us to choose a system upon which to base our application. At that point in time we reviewed all of the proposed solutions to Baltimore’s solid waste disposal problem in search of the one system that we felt was able to solve the problem and at the same time be eligible for Federal funding. In order to determine the system that best suited our situation, certain criteria were used. The system which we were going to choose had to convince us that a scale-up from a prototype to 1,000 tons per day could be achieved. Another factor that was to be considered in the scale-up was that the system at 1,000 tons per day was economically justifiable when compared to other scale-up magnitudes. It was absolutely necessary that the system meet all pollution control standards of the State. The system’s resource recovery would have to be at a maximum and produce by-products which could be marketed. In addition, it cannot be overlooked *272

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Bluebook (online)
300 A.2d 656, 268 Md. 266, 1972 Md. LEXIS 649, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hylton-v-mayor-and-city-council-of-baltimore-md-1973.