Southeast Bullitt Fire Protection District v. Southeast Bullitt Fire & Rescue Department

537 S.W.3d 828
CourtCourt of Appeals of Kentucky
DecidedMay 5, 2017
DocketNO. 2016-CA-000030-MR
StatusPublished
Cited by2 cases

This text of 537 S.W.3d 828 (Southeast Bullitt Fire Protection District v. Southeast Bullitt Fire & Rescue Department) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Southeast Bullitt Fire Protection District v. Southeast Bullitt Fire & Rescue Department, 537 S.W.3d 828 (Ky. Ct. App. 2017).

Opinion

OPINION

STUMBO, JUDGE:

Southeast Bullitt Fire Protection District (hereinafter referred to as the District) appeals from an order of the Bullitt Circuit Court which found that a contract between the District and Southeast Bullitt Fire and Rescue Department (hereinafter referred to as the Fire Department) was enforceable. The District claimed the contract was void because it was not entered into after a public bidding process. The court found that the contract did not violate the Kentucky Constitution or Kentucky Revised Statutes. We find no error and affirm.

The District is á fire protection district created by Kentucky Revised Statute (KRS) Chapter 75 for the purpose of providing fire protection services to the citizens in its district. The Fire Department was incorporated in 1979 as a non-profit entity pursuant to KRS Chapter 273 and created to provide fire protection services to the fire protection district at issue. The District entered into a contract with the Fire Department in 1979 to provide fire protection services. The contract required, among other, things, that the Fire Department furnish fire protection, services for the area and the District would pay the net proceeds of the Fire Protection Tax revenue collected to the Fire Department. The Fire Department would use these funds to provide the required fire protection services.

The Fire Department has continuously provided fire protection services to the District since 1979. The contract has undergone minor revisions over the years and the contract was last renewed in 2013. The contract allows either party to terminate the agreement, but only after written notice. Once the written notice is received, the contract will terminate ten years after the notification date. In early January of 2015, the District’s board held a special meeting in order to declare the contract void. The District’s main issue with the contract is that it was not entered into after a public bidding process. The District claims the contract violates KRS 424.260 and Kentucky Constitution (Ky. Const.) §§ 157(b). and 164.

On January 23, 2015, the Fire Department filed the instant underlying action and sought a declaratory judgment finding the contract enforceable. On December 29, 2015, the trial court found the contract valid and enjoined the District from declaring it unenforceable. This appeal followed.

The District’s first argument on appeal is that the contract is void because it violated the public bidding provision in KRS 424,260. KRS 424.260 states in relevant part:

(1) Except where a statute- specifically fixes a larger sum as the minimum for a requirement of advertisement for bids, no city, county, or district, or board or [831]*831commission of a city or county, or sheriff or county clerk, may make a contract, lease, or other agreement for materials, supplies except perishable meat, fish, and vegetables, equipment, or for contractual services other than professional, involving an expenditure of more than twenty thousand dollars ($20,000) without first making newspaper advertisement for bids.

The District is correct that the fire protection contract was not publically advertised; however, the Fire Department argues that it provides a “professional service” and no public bidding was required. The trial court held that the Eire Department provided professional services and we agree with that conclusion.

Professional services have been defined as those services requiring “scientific knowledge or professional skill”. Jeffersontown v. Cassin, 267 Ky. 568, 102 S.W.2d 1001, 1005 (1937) (citation and quotation marks omitted). There is limited case law on this issue, but what is available provides some examples of professional services. Jeffersontown stated that an engineer, doctor, lawyer, artist, court stenographer, architect, or superintendent to supervise work being done under competitive bidding are considered professional services. Id. In McCloud v. City of Cadiz, 548 S.W.2d 158 (Ky. App. 1977), banking and insurance activities were deemed professional services which did not require public advertisement for bids. Id. at 162.

We believe that the Fire Department provides professional services; therefore, advertisements for public bidding were not required. Evidence in the record, in the form of a letter from the Kentucky Fire Commission, shows that the Fire Department is recognized by the Kentucky Fire Commission as a legitimate fire department. The Kentucky Fire Commission promulgates “administrative. regulations ... to create a program for, recognition and annual certification of volunteer fire departments.” KRS 75.410(1). “In order to be recognized and certified, a -volunteer fire department shall be organized pursuant to KRS 75.010, KRS 67.083, KRS Chapter 95, or KRS Chapter 273.” KRS 75.410(2).

The parties stipulated that the Fire Department was organized pursuant to KRS 273. In addition, the record contains information regarding the training the firefighters must undergo to become certified. Every volunteer firefighter must compléte a minimum of 20 hours of training before he or she can participate in an “emergency response activity.” Further, volunteer firefighters must achieve 150 hours of training within the first two years and 20 hours additional training annually.'

The trial court stated:

Firefighters require extensive training and expertise in order to fight fires. Firefighters must pass extensive physical and intellectual testing. Furthermore, there are numerous certifications required in order .to become a certified fire department in compliance with state statutes. The job requires more than menial repetition and requires significant skill and training. The District could not just pick a random person off the street and expect them to be able to fight a fire.

We agree that fighting fires requires professional skill; therefore, we believe the trial court was correct in finding that the contract for fire protection services did not require advertisements for public bidding pursuant to KRS 424.260(1).

The District’s next argument is that the contract at issue violates Ky. Const. § 157b.

Prior to each fiscal year, the legislative body of each city, county, and taxing district shall adopt a budget showing [832]*832total expected revenues and expenditures for the fiscal year.

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Bluebook (online)
537 S.W.3d 828, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southeast-bullitt-fire-protection-district-v-southeast-bullitt-fire-kyctapp-2017.