PEMBAR, INC. v. Knapp

111 N.W.2d 476, 14 Wis. 2d 527, 1961 Wisc. LEXIS 297
CourtWisconsin Supreme Court
DecidedOctober 31, 1961
StatusPublished
Cited by5 cases

This text of 111 N.W.2d 476 (PEMBAR, INC. v. Knapp) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
PEMBAR, INC. v. Knapp, 111 N.W.2d 476, 14 Wis. 2d 527, 1961 Wisc. LEXIS 297 (Wis. 1961).

Opinions

Brown, J.

Both cases present these issues:

(1) Does the Milwaukee museum board have authority to execute public-improvement contracts for the erection and construction of a new city museum?

(2) If so, is the board required to let such contracts under competitive bidding?

(3) Once the board authorized advertising for bids is it bound to award the contract on the basis of such bids? The advertisement did not represent that the lowest responsible bidder would be awarded the contract.

In considering the question of the requirement for competitive bidding and the respective powers of the museum board and the city commissioner of public works to authorize such bidding, the following statutes and city ordinances are applicable.

Sec. 43.35, Stats, (sec. 18.01, Milwaukee city charter), authorizes the city to establish and maintain a public museum. Sec. 43.36, Stats, (sec. 18.02, Milwaukee city char[531]*531ter), provides for the appointment of a board of trustees to administer the museum. Sec. 43.39, Stats., provides for disbursement of museum funds and also requires that all moneys appropriated for museum purposes shall be paid to the city treasurer and credited to the museum fund.

Sec. 43.41 (1), Stats, (sec. 18.07, Milwaukee city charter), provides:

“Site, buildings, and equipment. (1) The board of trustees of each such institution shall erect, purchase, hire, or lease buildings, lots, rooms, and furniture for the use and accommodation of the institution, and shall enlarge, improve, and repair such buildings, rooms, and furniture; but shall not erect, purchase, lease, or enlarge any building or lot without express authority of an ordinance or resolution of the common council. All deeds of conveyance and leases shall run to the city.”

Further applicable sections will be cited in the discussion.

Appellants take the position that the museum board is without authority to enter into construction contracts for a city museum. Their theory is that such power resides only in the commissioner of public works, citing Koch v. Milwaukee (1895), 89 Wis. 220, 62 N. W. 918, in support of this contention. This case did hold that the Milwaukee common council is the only body with original power to erect and construct the public library-museum, though the council may ratify the unauthorized acts of others. However, the trial court held that the laws affecting the museum board have so changed since 1895 as to overturn the rationale of Koch with respect to the power of the museum board. Appellants point out that Koch was cited with approval in Ellerbe & Co. v. Hudson (1957), 1 Wis. (2d) 148, 83 N. W. (2d) 700, 85 N. W. (2d) 663. Our approval was limited to the Koch statement pertaining to ratification and was not on grounds applicable to this controversy.

[532]*532Respondents cite certain statutes passed after Koch v. Milwaukee, supra, such as ch. 41, Laws of 1895, and its later version, ch. 452, Laws of 1921. These statutes took the place of ch. 93, Laws of 1891, which governed the Koch Case. In the later statutes, the legislature vested a board of trustees of institutions with the power of erecting buildings for the use and accommodation of the institution. This is now sec. 43.41, Stats. Thus, the Koch Case is not applicable here.

Appellants also cite sec. 7.17 of the Milwaukee city-charter to support their contention that the commissioner of public works has authority to erect a public museum. As amended by ordinance 112, sec. 7.17 provides:

“Sec. 2. It shall be the duty of the commissioner of public works to take special charge and superintendence, subject to such ordinances as may be lawfully passed by the common council, of all streets, alleys, highways, sidewalks, crosswalks, bridges, walks, public grounds, engine houses, and of all other public buildings and grounds belonging to the city or any of the wards of such city, except such public grounds as under the laws of this state or the charter provisions or ordinances of the city of Milwaukee are otherwise under the care and supervision of other officers; of all sewers and the work pertaining thereto; and of all public works commenced or undertaken by such city, except as otherwise expressly provided by law. He shall have power to make contracts in the name and behalf of the city in the manner and under the limitations prescribed by the laws of this state or the charter of the city of Milwaukee having reference to the board of public works or the commissioner of public works. ITe shall perform all the duties prescribed by this charter ordinance, and such duties as are now executed by boards of public works in cities of the first class to which chapter 297 of the Laws of 1907 shall apply, and such other duties as the common council may from time to time require. It shall be his duty to supervise and control the collection, removal and disposal of garbage in the city, subject to such ordinances and resolutions as the common council may adopt.”

[533]*533This section does not support appellants’ position because thereby the commissioner is given authority only over those buildings not under the care and supervision of other officers. Sec. 43.37 (2), Stats., and sec. 18.03 (2) of the Milwaukee city charter give this power of “care and supervision” to the museum board of trustees.

Concluding, therefore, that the museum board had the power to enter into such a construction contract, the question remains whether it must let the contract by using a competitive-bidding system.

Unless appellants can show such authority, the museum board does not have to resort to competitive bidding. Cullen v. Rock County (1943), 244 Wis. 237, 240, 12 N. W. (2d) 38, held that, “ ‘In the absence of charter or statutory requirement, municipal contracts need not be let under competitive bidding.’ ” Also see 10 McQuillin, Mun. Corp. (3d ed.), pp. 272-274, sec. 29.31.

Appellants first cite sec. 7.29 of the Milwaukee city charter to support their contention that competitive bidding is required. This section provides all work and the purchase of supplies and equipment, chargeable to any city fund when the cost exceeds $500,’ must be done under competitive bidding. As the work here is over $500, appellants reason that there must be competitive bidding. The key phrase here is “chargeable to any city fund.”

Sec. 43.39, Stats., provides:

“LIBRARY AND MUSEUM FUNDS; EXPENDITURES. (1) Public library and public museum funds appropriated to said institutions by the common council shall not be used or appropriated, directly or indirectly, for any purpose other than the maintenance and increase, payment of the salaries of the librarian or custodian and employees, purchase of fuel, supplies, furniture and fixtures, or incidental repairs of said institutions, respectively.
“(2) All moneys appropriated for the purposes of said institutions shall be paid over to the city treasurer and [534]*534credited to said funds, respectively.

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PEMBAR, INC. v. Knapp
111 N.W.2d 476 (Wisconsin Supreme Court, 1961)

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Bluebook (online)
111 N.W.2d 476, 14 Wis. 2d 527, 1961 Wisc. LEXIS 297, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pembar-inc-v-knapp-wis-1961.