Price v. City of Fargo

139 N.W. 1054, 24 N.D. 440, 1913 N.D. LEXIS 13
CourtNorth Dakota Supreme Court
DecidedFebruary 1, 1913
StatusPublished
Cited by6 cases

This text of 139 N.W. 1054 (Price v. City of Fargo) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Price v. City of Fargo, 139 N.W. 1054, 24 N.D. 440, 1913 N.D. LEXIS 13 (N.D. 1913).

Opinion

Beuce, J.

(after stating the facts as above). It is well established that, in the absence of charter or-statutory requirement, municipal contracts need not he let under competitive bidding. In such cases the corporate authorities are only required to act in good faith and to the best interests of the municipality. McQuillin, Mun. Corp. § 1186, p. 2634; Elliott v. Minneapolis, 59 Minn. 111, 60 N. W. 1081; Middle Valley Trap Rock & Min. Co. v. Morris County, 70 N. J. L. 625, 57 Atl. 258, affirmed in 71 N. 7. L. 333, 60 Atl. 358; Yarnold v. Lawrence, 15 Kan. 126; Augusta v. McKibben, 22 Ky. L. Rep. 1224, 60 S. W. 291; Dillingham v. Spartanburg, 75 S. C. 549, 8 L.R.A.(N.S.) 412, 117 Am. St. Rep. 917, 56 S. E. 381, 9 Ann. Cas. 829; State, Schefbauer, Prosecutor, v. Kearney Twp. 57 N. J. L. 588, 31 Atl. 454; Fitzgerald v. Walker, 55 Ark. 148, 17 S. W. 702. In the case at bar [456]*456there is no proof or serious allegation of any fraud or lack of good faith on the part of the municipal authorities. The proof, too, is conclusive that the filtration plant in question is a matter of great public utility, and one which is seriously and urgently needed. Where bids are requested, but there is no law requiring competitive bidding, nor that the contract shall be let to the'lowest bidder, such contract need not be let to the lowest bidder, and where it is awarded to a higher bidder, a taxpayer cannot have the contract set aside where there is no proof of’ fraud. McQuillin, Mun. Corp. ¶ 1228, p. 2691; Reihl v. San Jose, 101 Cal. 442, 35 Pac. 1013.

The all-important question for discussion, then, is whether article 18 of chapter 62 of the Laws of 1905 (art. 18, chapter 30, of the Political Code of 1905), has any application whatever to municipal improvements of the nature of that under consideration; that is to-say, of municipal improvements which are of general use and utility, and which are maintained for the general purposes of government, ox* of preserving and protecting the public health and safety, which are not of any particular benefit to any particular property or any particular persons, as distinguished from the public as a whole, and which therefore can and should be paid for out of the public revenues and the public taxes levied upon the people as a whole, and not merely out of the funds which may be derived from assessments based upon special benefits conferred. We think it is quite clear that the provisions of the article in question have no such application. The title of the act. is “An. Act for the Organization and Government of Cities, and to-Provide for the Limitation of Actions to Vacate Special Assessments' heretofore Made.” It re-enacts, it is true, the general provisions of the-prior statute which relate to the general powers of cities, but it is quite clear that its main and special purpose is to provide for a more complete and comprehensive scheme in regard to what are generally known as- special or local improvements, the expenses of which are met by special assessments upon the property benefited. In addition to the-general powers, which are usually given to cities and in regard to which the act, in the main, merely re-enacts the provisions of chapter 28 of the Code of 1899, the power is given to make many other improvements, by means of what are commonly termed special assessments. That is to say, to construct pavements, sewers, sidewalks, and other improvements [457]*457which, though in a measure of public value, are also of a special value to the owners of the adjacent property, and in such case to provide for the payment of the expenses of such by levying an assessment upon the persons benefited thereby. The act nowhere makes any provision for the erection and construction of filtration plants and other similar buildings by special assessments. It does, it is true, provide in § 163 of article 18 for the payment of one fifth of the cost “of any work here-inbefore provided for other than sidewalks and opening=~and widening-of streets by general taxation of all taxable property in said city.” Such clause, however, clearly relates to the improvements mentioned in article 18, in which § 163 is contained, namely, sewers, paving, and water mains; for not merely is this to us made clear by the context,, but there is nowhere in the act any provision for the erection or construction of general pumping stations, jails, courthouses, or filtration, plants, and which, as we have before said, are general, and not special,, in the benefits which they eonfei’, by special assessments or by any other means than by general taxation. It is to be noticed, indeed, that §■ 149 contained in art. 18, which article by the terms of its title, relates to sewers, paving, and water mains alone, and which, with article 17, are the only articles which relate to special assessments and to what may be termed local improvements, expressly provides that “each contract so entered into shall state the time on or before which such work must be completed, and must state from what fund the amount to be paid thereon by the city is to be paid, and that the consideration of such contract is payable only in warrants drawn on such fund, and that such city assumes and incurs no general liability under such contract.” Such provision and such article must clearly and solely relate to what are generally known as local or special improvements. For nowhere else is there any limitation on a city from contracting generally for its buildings and improvements, and assuming a general liability therefor, provided that the indebtedness therein created is within its constitutional debt limit, and, in case bonds are issued, a proper sinking fund and tax levy is provided for. We are clearly, therefore, of the opinion that § 142 of article 18, and which provides as a prerequisite to the construction or the letting of a contract, that the city engineer shall file plans and specifications for such construction work, together with details of the work to be done, and an estimate of its. [458]*458probable cost, relates merely to the “construction or operation of sewers, to the opening, widening, and extending, paving, repaving, macadamizing, or curbing of any street, avenue, lane, highway, or other public grounds within the city limits, or to extending, relaying, and replacing any water mains, as such are the only improvements specified in the paragraph,” or, as a matter of fact, in the article itself. The same, we believe, is also true of §§ 145, 146, 147, 148, and 149, which relate to the advertising for bids, the nature of the bids themselves, the bonds required to be given, and the contracts to be made thereunder. We are, !n fact, led to the irresistible conclusion that art. 18 of chapter 62 of the Laws of 1905 relates merely, as it expressly states in its subtitle, to sewers, paving, and water mains, or, at any rate, to those improvements which are generally made and can be made by means of special assessments.

Another persuasive reason for holding that the provisions of article 18 of chapter 62 of the Laws of 1905, and the provisions for competitive bidding therein contained, relate merely to contracts for sewers, paving, and water mains, that is to say, to the local improvements provided for and treated of in such article, is to be found in the fact that the legislature of 1907 amended by paragraph 7 of chapter 46 of the Laws of 1907, § 148 of such article, that is to say, § 2783 of the Laws of 1905, in various particulars, and in such amendment used the word “article,” and not “act.” “The city council,” the amended section reads, “shall have the right to reject any and all bids for work to be done under this article,” etc.

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Bluebook (online)
139 N.W. 1054, 24 N.D. 440, 1913 N.D. LEXIS 13, Counsel Stack Legal Research, https://law.counselstack.com/opinion/price-v-city-of-fargo-nd-1913.