Northwest Line Constructors v. Pud

17 P.3d 1251
CourtCourt of Appeals of Washington
DecidedFebruary 12, 2001
Docket45961-9-I
StatusPublished

This text of 17 P.3d 1251 (Northwest Line Constructors v. Pud) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Northwest Line Constructors v. Pud, 17 P.3d 1251 (Wash. Ct. App. 2001).

Opinion

17 P.3d 1251 (2001)

NORTHWEST LINE CONSTRUCTORS CHAPTER OF THE NATIONAL ELECTRICAL CONTRACTORS ASSOCIATION, a foreign corporation; Cascade Chapter of the National Electrical Contractors Association, a Washington corporation; Puget Sound Chapter of the National Electrical Contractors Association, a Washington corporation, Southwest Washington Chapter of the National Electrical Contractors Association, a Washington corporation; Inland Empire Chapter of the National Electrical Contractors Association, a Washington corporation, Appellants,
v.
SNOHOMISH COUNTY PUBLIC UTILITY DISTRICT NO. 1, Respondent.

No. 45961-9-I.

Court of Appeals of Washington, Division 1.

February 12, 2001.

*1253 H. Lee Cook, Stewart, Sokol & Gray, Llc, Portland, Or., for Appellants.

Henry Scott Holte, Anderson, Hunter, Dewell, Baker & Collins, Ps, Mukilteo; Bardell D. Miller, Public Utility Dist. # 1 of Snohomish County, Everett; J. Robert Leach, Anderson Hunter Law Firm, Everett, for Respondent.

*1252 KENNEDY, J.

The National Electrical Contractors Association, Northwest Line Constructors Chapter (NECA) brought this action for declaratory judgment and injunctive relief, alleging in its complaint that Snohomish County Public Utility District No. 1 (the PUD) had in the past and still was "purchasing more than $50,000 worth of individual items of equipment and installing these items using its own forces without public competitive bidding required by RCW 54.04.070[,]"[1] a public utility competitive bidding statute. The complaint also alleged that PUD was "splitting" its contracts in violation of RCW 54.04.070 and other bidding statutes.[2] The trial court granted the PUD's motion for summary judgment dismissing NECA's complaint, and we affirm.

RCW 54.04.070 allows a public utility district to split electrical substation projects into site preparation work and electrical installation work, and to have its own regularly employed personnel perform the electrical installation work, rather than calling for bids, where such is an accepted industry practice under prudent utility management. That same statute defines "prudent utility management" to mean "performing work with regularly employed personnel utilizing material of a worth not exceeding fifty thousand dollars in value" with the further proviso that "such limit on the value of material being utilized in work being performed by regularly employed personnel shall not include the value of individual items of equipment purchased or acquired and used as one unit of a project."[3]

NECA failed to allege in its complaint that PUD's conduct fell outside accepted industry practice under prudent utility management, but nevertheless argued at summary judgment that (1) splitting a substation project between site work and electrical work is not an accepted industry practice and that (2) the PUD failed to contract out electrical work in which the value of the material used, exclusive of equipment, exceeded $50,000. The trial court gave NECA leave to amend its complaint to allege that the PUD's practices fell outside accepted industry practice under prudent utility management but NECA failed to do so. The trial court then dismissed the complaint with prejudice because it failed to state a claim under the bidding statute. But the court also ruled that NECA could file a new action properly raising the claim if the facts warranted it, and the PUD agrees for purposes of this appeal that if NECA does so, it will not contend that the action is barred by preclusion doctrine.[4]

DISCUSSION

Summary judgment is available only if the pleadings, depositions, answers to interrogatories, admissions on file, and any affidavits show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law. CR 56(c). In reviewing a summary judgment order, this court conducts the same inquiry as the trial court. Mountain Park Homeowners Ass'n, Inc. v. Tydings, 125 Wash.2d 337, 341, 883 P.2d 1383 (1994). We review questions of law de novo. Id.

NECA argues that the PUD's practice of splitting projects between site preparation work and electrical installation work violates RCW 54.04.070 because that statute does not permit contract splitting. This issue involves statutory construction, a question *1254 of law reviewed de novo. State v. Ammons, 136 Wash.2d 453, 456, 963 P.2d 812 (1998) (citations omitted). Where a statute is plain, unambiguous, and clear on its face, there is no room for construction. National Elec. Contractors Ass'n v. City of Bellevue, 1 Wash.App. 81, 83, 459 P.2d 420 (1969) (citing King County v. City of Seattle, 70 Wash.2d 988, 425 P.2d 887 (1967)).

The portion of RCW 54.04.070[5] relevant to this case states:

Any work ordered by a district commission, the estimated cost of which is in excess of ten thousand dollars exclusive of sales tax, shall be by contract, except that a district commission may have its own regularly employed personnel perform work which is an accepted industry practice under prudent utility management without a contract. Prudent utility management means performing work with regularly employed personnel utilizing material of a worth not exceeding fifty thousand dollars in value without a contract: PROVIDED, That such limit on the value of material being utilized in work being performed by regularly employed personnel shall not include the value of individual items of equipment purchased or acquired and used as one unit of a project.

(Emphasis in original). Under the plain terms of this statute, unless an exception applies, work ordered by a public utility district must be by contract if the estimated cost of the work is in excess of $10,000. Under the only relevant exception here, a district may have its own regularly employed personnel perform work without calling for competitive bids where such is an accepted industry practice under prudent utility management. "Prudent utility management means performing work with regularly employed personnel utilizing material of a worth not exceeding fifty thousand dollars in value" but "such limit on the value of material being utilized in work being performed by regularly employed personnel shall not include the value of individual items of equipment purchased or acquired and used as one unit of a project." RCW 54.04.070.

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Related

Williams v. Western Surety Co.
492 P.2d 596 (Court of Appeals of Washington, 1972)
Lewis v. Bell
724 P.2d 425 (Court of Appeals of Washington, 1986)
King County v. City of Seattle
425 P.2d 887 (Washington Supreme Court, 1967)
State v. Ammons
963 P.2d 812 (Washington Supreme Court, 1998)
Mt. Park Homeowners Ass'n, Inc. v. Tydings
883 P.2d 1383 (Washington Supreme Court, 1994)
Lightner v. Balow
370 P.2d 982 (Washington Supreme Court, 1962)
Molloy v. City of Bellevue
859 P.2d 613 (Court of Appeals of Washington, 1993)
State v. Ammons
136 Wash. 2d 453 (Washington Supreme Court, 1998)
National Electrical Contractors Ass'n v. City of Bellevue
459 P.2d 420 (Court of Appeals of Washington, 1969)
Dewey v. Tacoma School District No. 10
974 P.2d 847 (Court of Appeals of Washington, 1999)

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Bluebook (online)
17 P.3d 1251, Counsel Stack Legal Research, https://law.counselstack.com/opinion/northwest-line-constructors-v-pud-washctapp-2001.