Morse Bros. Prestress, Inc. v. City of Lake Oswego

640 P.2d 645, 55 Or. App. 886, 1982 Ore. App. LEXIS 2301
CourtCourt of Appeals of Oregon
DecidedFebruary 8, 1982
DocketNo. A20049
StatusPublished

This text of 640 P.2d 645 (Morse Bros. Prestress, Inc. v. City of Lake Oswego) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Morse Bros. Prestress, Inc. v. City of Lake Oswego, 640 P.2d 645, 55 Or. App. 886, 1982 Ore. App. LEXIS 2301 (Or. Ct. App. 1982).

Opinion

RICHARDSON, P. J.

This is an original proceeding pursuant to ORS 183.400 in which we are asked to determine the validity of regulations adopted by the Lake Oswego Local Contract Review Board. The threshold issue is whether we have jurisdiction under ORS 183.400 to review regulations adopted by a local government agency. We conclude that we have jurisdiction and uphold the challenged regulations.

The facts giving rise to this proceeding may be briefly stated. ORS 279.0551 authorizes a local governmental unit to create its governing body as a local contract review board and grants a local board all the powers given to the state Public Contract Review Board in ORS 279.011 through 279.056. Those statutes relate generally to award of public contracts for goods and services, the specifications in such contracts, provisions for competitive bidding and exemptions from the competitive bidding requirements. They provide that contract review boards, both state and local, may exempt certain classes of contracts from competitive bidding upon finding the existence of certain conditions specified in the statute and may exempt certain products from the specification requirements. ORS 279.015; 279.017.

The City Council of the City of Lake Oswego, acting pursuant to ORS 279.055, designated itself as the local contract review board by ordinance in 1976. The ordinance also empowered the city council, as the local contract review board, to adopt regulations, by resolution, concerning the city’s public contracts. Pursuant to this ordinance, in December, 1980, the city council adopted, by resolution, administrative regulations for public contracts. The regulations cover all procedures for the City’s contracts for goods and services, including competitive bidding, [889]*889purchase of goods, and exemptions from competitive bidding. Although the regulations do not by express reference incorporate ORS 279.015 and 279.017, they do establish procedures that are similar to those statutes’ policies and exemption requirements.

Petitioner filed a petition in this court to test the validity of certain regulations of the city contract review board which relate to exemptions from the competitive bidding and purchase of goods procedures. Petitioner argues that we have jurisdiction under ORS 279.019:

“(1) Exemptions granted [by the ‘board’] pursuant to subsection (2) of ORS 279.015 or subsection (2) of ORS 279.017 constitute rulemaking and not contested cases under ORS 183.310 to 183.500.
“(2) Any person except the public contracting agency or anyone representing it may bring a petition for a declaratory judgment to test the validity of any rule adopted under ORS 279.015 and 279.017 in the manner provided in ORS 183.400.”

The city moved to dismiss the petition, contending this court lacked jurisdiction to review local regulations. The city argues that the Administrative Procedures Act (APA) specifically applies only to state agencies and not to local agencies. The city reads ORS 279.019(2) to mean that only action taken by the state contract review board may be reviewed in an original proceeding under ORS 183.400. Petitioner, on the other hand, contends that because the Public Contract Law (ORS 279.011 to 279.056) makes no distinction between state and local boards, the reference to boards in ORS 279.019 makes the actions of local boards subject to the APA, including the review procedure of ORS 183.400.

Although either reading of ORS 279.019, in conjunction with the APA, makes some sense, we conclude the legislature intended to allow review of local board regulations pursuant to the procedure specified in ORS 183.400. The apparent ambiguity in the statutory scheme for public contracting in relation to the APA is explained in part by the legislative history. The public contract law was amended in 1975. The vehicle for amendment was HB 2339. As originally proposed, HB 2339 would have created a state [890]*890public contract review board, but would have authorized the existence of comparable local boards only until 1977. Upon expiration of the local boards, the state board would assume jurisdiction of all contract matters pending before local boards and would administer all public contracts for state and local governments. The original bill defined “board” to mean only the State Public Contract Review Board, which would have been empowered to promulgate regulations that would apply to all public contracts. The bill, in the provision which ultimately became ORS 279.019, also confirmed the right of any person to test the validity of the state board’s rules under ORS 183.400.

Prior to its adoption, HB 2339 was amended at the request of the Association of Oregon Counties. The provision for expiration of the local boards was deleted and the term “board” was redefined to include local contract review boards. The wording of what was to become ORS 279.019 was unchanged. Local boards were given the same powers as the state board. In explaining the amendments, Attorney General Johnson said to the House Judiciary Committee that the amendments to HB 2339 were a recognition of the cities’ and counties’ home rule authority. Minutes, Judiciary Committee hearing, April 14, 1975.

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Bluebook (online)
640 P.2d 645, 55 Or. App. 886, 1982 Ore. App. LEXIS 2301, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morse-bros-prestress-inc-v-city-of-lake-oswego-orctapp-1982.