Irelan v. Portland

179 P. 286, 91 Or. 471, 1919 Ore. LEXIS 60
Oregon Supreme Court·Decided March 18, 1919·Published·Cited by 3 cases

Opinion

BEAN, J.

1. The first contention made by counsel for plaintiffs is that the time stipulated in the contract [476] for the completion of the work had expired and the work not being finished, the contract ceased to have any validity. The first question is, had the contract expired? It provides that the work shall be performed in accordance with the plans and specifications therefor, and completed by the first day of November, 1911; the contract also provides for damages as provided for in Ordinance No. 19,745 for any delay beyond the first day of November, 1911. This ordinance which was made a part of the contract also provides that:

“The Executive Board may further for unnecessary delay or delinquency on the part of the contractor declare a forfeiture of any such contract, and provide for the completion of the same by the City at the expense of the contractor.”

It is alleged on the part of the city that the contract required the work to be done on or before the first day of November, 1911, unless delays were occasioned by certain things in the contract mentioned in which case the contractor should have as many days additional time as were lost by such delays, and unless the executive board should grant an extension of time to the contractor. The matter of the rescission of the contract was referred to the city attorney. That official was informed by the city engineer as follows:

“I notified the contractor that this office would not permit the improvement until the proper underground work was installed, nor would I allow them to tear up the street by grading during the'winter season, for the reason that Milwaukie Street is the only road leading to Sellwood, Milwaukie and the southeast district, and the grading of the street during the winter would leave the people south of Holgate Street without means of getting into the city.”

The contract contains no provision making time of the essence of the contract, or creating an automatic [477] forfeiture for a failure to complete the work at the appointed time. Section 397 of the Charter discloses inter alia that:

“No delays, mistakes, errors or irregularities in any act or proceeding in the improvement of a street or the construction of a sewer or drain shall prejudice or invalidate any final assessment, but the same may be remedied by subsequent and amended acts or proceedings. ’ ’

2. The council refused to rescind the contract and thereafter extended the time for the completion of the work as stated above. It does not appear that the time for the completion of the work, according to all the stipulations of the contract, had expired when such time was extended. The city would not be justified in forfeiting the contract when the delays in the execution thereof were by the request of the city official in charge of the work. It appears that the work was postponed on account of laying water-mains, gas-mains and sewer-pipes, and also by reason of winter weather, and delayed on account of the traffic and also paving between the double street railway tracks, and that thereafter the executive board extended the time for the completion of the work. It is not shown that the contract was illegal: Ritchie v. City of Topeka, 91 Kan. 615 (138 Pac. 618); Hellar v. Tacoma, 44 Wash. 250 (87 Pac. 130); Washington Paving Co. v. Tacoma, 78 Wash. 282 (138 Pac. 870); Mayor and City Council of Baltimore v. Raymo, 68 Md. 569 (13 Atl. 383). After notice to the property owners and an opportunity to be heard thereon, the executive board had jurisdiction to determine whether the contractor substantially performed the obligations of his contract. The board did not lose jurisdiction to accept the improvement because the same was not completed on the date first appointed in [478] the contract: Cormack v. Cormack, 82 Or. 108 (160 Pac. 380); Lawrence v. City of Portland, 85 Or. 586 (167 Pac. 587).

3. It is suggested by counsel for plaintiffs that the services of the city engineer and his assistants in performing the engineering work pertaining to the street should not be taxed as a part of the cost of the improvement for the reason that these officials were paid regular monthly salaries by the city. The rule that services rendered by municipal officers who are compensated by regular salaries should not be considered as a part of the cost of a municipal improvement was formerly based upon the fact that the law authorizing the improvement did not provide that such incidental expenses should be charged against the property benefited: Smith v. City of Portland, 25 Or. 297 (35 Pac. 665); Board of Commissioners v. Fullen, 118 Ind. 158 (20 N. E. 771). By Section 394 of the Charter of Portland, it is specifically enacted that:

“The contract price based upon the estimate of the City Engineer, the costs of rights of way and expenses of condemning land, and a sum not to exceed five per cent of the contract price as the cost of advertising, engineering, and superintendence, shall be deemed to be the cost of every sewer or street improvement.”

Under this Section it is proper for the City of Portland to tax a sum not exceeding 5 per cent of the contract price, as the cost of advertising, engineering and superintendence to be paid by the owners of the property benefited, although city officers who were paid a regular salary did the engineering and superintending of the construction: Hamilton on Special Assessments, § 525; People v. City of Kingston, 39 App. Div. 80 (56 N. Y. Supp. 606); Burns v. Duluth, 96 Minn. 104 (104 N. W. 714). The actual cost of the engineering [479] work for the improvement, the plans and specifications and the superintendence of the construction of the pavement are legitimate parts of the cost of the improvement.

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Irelan v. Portland, 179 P. 286, 91 Or. 471, 1919 Ore. LEXIS 60 (Or. 1919).

179 P. 286 (Irelan v. Portland) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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