Planning & Design Solutions v. City of Santa Fe

885 P.2d 628, 118 N.M. 707
CourtNew Mexico Supreme Court
DecidedOctober 25, 1994
Docket21387
StatusPublished
Cited by35 cases

This text of 885 P.2d 628 (Planning & Design Solutions v. City of Santa Fe) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Planning & Design Solutions v. City of Santa Fe, 885 P.2d 628, 118 N.M. 707 (N.M. 1994).

Opinion

OPINION

FROST, Justice.

The City of Santa Fe (City) 1 solicited bids for a proposed-development. After the bids had been opened, the City introduced new criteria in evaluating the bids, then awarded the bid to the fourth-ranked bidder, and then rejected all bids. Planning Design Solutions (PDS), the top-ranked bidder, sued the City, alleging violations of the New Mexico Procurement Code and the City’s own purchasing regulations. The trial court ruled that PDS was entitled to damages for costs incurred in preparing the bid. We affirm.

I. FACTS

On April 15, 1992 the City published a “Request for Proposal” to solicit bids for the professional services necessary for developing a mixed-use community. See City of Santa Fe, Request for Proposal[:] Master Plan Development — Tierra Contenta Site (April 15, 1992) [hereinafter Request ]. The Request listed and weighted four factors the City would use in evaluating the proposals: 25% for project approach, 10% for project schedule, 30% for the experience and expertise of the firm, and 35% for the experience and expertise of the assigned personnel. There was no suggestion in the Request that locality would be a factor — that preference would be given to proposals that included the use of people and resources from New Mexico.

The City received eleven proposals. These were evaluated by a selection committee which determined that PDS, a California corporation, submitted the proposal “most advantageous to the City.” Santa Fe, N.M., Purchasing Manual § 23.14.4 (May 25, 1988) [hereinafter Purchasing Manual]. The bid submitted by Mazria and Associates, a New Mexico firm, was ranked fourth. Contract negotiations ensued between PDS and the purchasing agent of the City. On June 29, 1992 a proposed contract between PDS and the City was approved unanimously by the City of Santa Fe Finance Committee. However, the approval of the Santa Fe City Council was necessary before the contract could be ratified. On July 8, 1992 the proposed contract between PDS and the City was presented to the City Council. The Council rejected the recommendations of the selection committee and the Finance Committee and voted unanimously to award the contract to Mazria, “the highest local firm on the list.” Minutes of the Regular Meeting of the Governing Body [of Santa Fe, New Mexico] 9, 20 (July 8, 1992, afternoon session) [hereinafter Council Minutes ] (statement of Councilor Deborah Jaramillo).

PDS filed a bid protest against the City on July 16, 1992. On petition from PDS, the district court on July 20, 1992 preliminarily enjoined the City from awarding the contract to any business other than PDS. On July 29, 1992 the Council rescinded the contract award to Mazria and voted to reject all eleven proposals. They further decided to reissue the Request with a change in the eváluation criteria to include locality. The City filed a motion for summary judgment. The district court denied the motion in part stating that the City had violated its own Purchasing Manual and ruled that PDS should be awarded its costs in preparing the bid; and it granted the motion in part stating that the City did not have a binding contract with PDS and could not be held liable for breach of contract.

II. STANDARD OF REVIEW

We presume that municipal officers have acted in good faith and for the public good. Regional Scaffolding & Hoisting Co. v. City of Philadelphia, 593 F.Supp. 529, 535 (E.D.Pa.1984) (quoting Weber v. City of Philadelphia, 437 Pa. 179, 262 A.2d 297, 299 (1970)). When rules and statutes grant discretion to municipalities in performing specific acts, we will not question those acts absent proof of fraud, illegality, collusion, bad faith, arbitrary action, or abuse of power. In other words, we will not substitute judicial discretion for municipal administrative discretion. 10A Eugene McQuillin, The Law of Municipal Corporations § 29.123, at 160 (3d ed. 1990); see Regional Scaffolding, 593 F.Supp. at 535 (quoting Weber, 262 A.2d at 299). This deference is grounded in “judicial respect for the doctrine of separation of powers in government.” Regional Scaffolding, 593 F.Supp. at 535 (quoting Weber, 262 A.2d at 299).

However, when statutes and regulations define the rules of competitive bidding, these statutes and regulations will be strictly construed against the government entity that solicited the bids. K.L. Conwell Corp. v. City of Albuquerque, 111 N.M. 125, 129, 802 P.2d 634, 638 (1990). Also, public works contracts involving a municipality will be interpreted under the same rules that govern contracts involving private citizens. Id. at 129, 802 P.2d at 638.

III. THE CITY VIOLATED THE PROCUREMENT CODE AND ITS OWN PURCHASING MANUAL

A. The procurement process

Purchasing by public entities in New Mexico is governed by the Procurement Code, NMSA 1978, §§ 13-1-28 to -199 (Repl.Pamp.1992 & Cum.Supp.1994) [hereinafter Code]. As required by Section 13-1-117.1, the City of Santa Fe has also adopted its own procurement regulations which are published in the Purchasing Manual. The Code applies to all nonfederal expenditures “by state agencies and local public bodies for the procurement of items of tangible personal property, services and construction.” Section 13-1-30. In resolving this matter we must compare the City’s conduct with the strictures of the Code and the Purchasing Manual.

“The purposes of the Procurement Code are to provide for the fair and equitable treatment of all persons involved in public procurement, to maximize the purchasing value of public funds and to provide safeguards for maintaining a procurement system of quality and integrity.” Section 13-1-29(C). Of all the interests involved in competitive bidding, the public interest is the most important. State ex rel. Educational Assessments Sys., Inc. v. Cooperative Educ. Servs, of N.M., Inc., 115 N.M. 196, 201, 848 P.2d 1123, 1128 (Ct.App.1993). An economical and efficient system of procurement directly benefits taxpayers. See Id. at 201, 848 P.2d at 1128. Through competitive bidding the municipality hopes to obtain the best product at the best price. See John J. Brennan Constr. Corp. v. City of Shelton, 187 Conn. 695, 448 A.2d 180, 184 (1982). Thus the Code protects against the evils of favoritism, nepotism, patronage, collusion, fraud, and corruption in the award of public contracts. Id. It is certainly in the public interest that the City abide by the procurement rules it has set for itself.

Through the initial stages of the procurement process the City complied with the requirements of the Code and the Purchasing Manual. The City’s Request was issued in accordance with Section 13-1-112(A) of the Code:

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Cite This Page — Counsel Stack

Bluebook (online)
885 P.2d 628, 118 N.M. 707, Counsel Stack Legal Research, https://law.counselstack.com/opinion/planning-design-solutions-v-city-of-santa-fe-nm-1994.