Untitled Texas Attorney General Opinion

Honorable Henry Wade Opinion No. C-156 District Attorney Dallas County Re: Whether the County of Dallas may Dallas',Texas hire professionalservices with- out advertisingfor bids and re- Dear Hr. Wade: lated questions. You have requested an opinion from this office upon the following questions: "1* May the County of Dallas hire professional services without advertisingfor bids? "2. May Dallas County contract for three years for a professionalservice contract? “3* Can the Commissioners'Court ratify the action of the individualmembers and then assume the A( obllgatian of paying for the services rendered and to :' be rendered as they come due in the future? “4.0 If No. 3 is answered in the negative, can Dallas County pay on quantum meruit for the services , rendered?” These questions have arisen in connection with a series of events which were set forth in your letter as follows: "In January~of this year, a public,spirited benefactor contacted orally one or more members of the Commissioners8Court .individually, and in conver- satlon with said members agreed to beautify oertain .countyowned property by planting and maintaining numerous trees on same. This individualundertook this task on the erroneous assumption that the County of Dallas had officiallyagreed to the planting of the trees and that .theCounty had assumed the obligation of maiptaining same with a landscape.architectto be agreed'uponby the parties. l'Immediatelythereafter,said trees were planted, and the landscape architect commenced performing his duties, under the assumptionthat he had a three year -755- . . Hon. Henry Wade,:,page2 (C-156) contract in the sum of $2,000.00 per year, with the County of Dallas, for his services. These professionalservices include spraying, trimming, replacing dead trees, watering and maintaining the beauty of the location. He has now submitted a statement for professionalservices rendered to date." In regard to your first question concerningwhether the County of Dallas may hire professionalservices without advertisingfor bids, the provisionsof Section 2 of Article 2368a, Vernon's Civil Statutes, should be noted, and the perti- nent portions are set forth es follows: "No county, acting through its Commissioners court * e 0 shell hereafter make any contract cell- ing for or re uiring the expenditureor payment of Two Thousand s$2,000.00)Dollars or more'out of any fundorfunds a e a without first submittingsuch proposed contract to competitivebids. Pro- vided. that in case of Dublic celamitv .'.*.'this provision shall not eppiy; and provided further, that it shall not be aDDlied to contracts for ner- sonal or urofessionelserviceq. . . .'I(Emphasis added). In Attorney General's Opinion No. R-2315 (19511, this office had before it the validity of a contract.forengineering services releting~to county roads which was let by the Commis- sioners' Court without competitivebids, and in such opinion it is stated that: 1, o even before Article 2368 was superseded by Article 2368e, which expressly provides that the bidder requirements 'shallnot be applied to contracts for personal or professionalservices,'it was held that contracts involving special skill and experience were not within the contemplationof the statute re- quiring competitivebids. o 0 q 'I*0 e the engineeringcompany has contracted to perform services requiring technical skill and experi-,I ence, - 'professionalservices.' We agree with the opinion a 0 o that the contract in.questioncells for professionalservices requiring technical skill and experience,that it does not fell within the competi- tive bid provisions of the law, and that, es such, it is expressly excepted from the competitivebid require- ments of Article 2368e." -756- E . Hon. Henry Wade, page 3 (C-156) -See.@so, .Gulf Bitulit&c Co. v. Nueces County, 11 S.W.2d 305 (Tex.Comm.App.192S);~hunterv. Whiteakey,.230 S.W. 1096 $;e;.Civ.App. 1921, error ref.): ~- W.2d 67 1971): McC~. I 122 Tex.‘i48,-32-S. Middleton,‘ "S.W. 563 (Tex.Comm. The first two cases pertain to persona.1services requiring special skill and experience and the last three cases pertain to professional architecturalservices. The services to be performed in the posed situation, if they are not to be considered professionalservices certainly personal services requiring special skill anA t?peri- ence, and consequentlywould be the type of services exempted from the competitivebid provisionsof Article 2368a. In connectionwith your second question concerning whether Dallas County may enter into a three year contract for professional services,~attentionshould be called to certain provisions contained in Section 7 of Article XI of the Consti- tution of Texas which provide that: et . . . no,debt for any purpose shell ever be incurred in any manner by any city or county unless provision is made, et the time of creating the same, for levying and collecting a sufficient.taxto pay the interest thereoa.andprovide at least two per cent (2%) as a sinking fund; . . .I1 The term "debt" as used In the above quoted con&i-. tutional provision has been uniformly held by the courts of this State to mean any pecuniary obligation imposed by contract, except such as were, at the date of the contract, within the lawful and reasonable contemplationof the parties, to be satis- fied out of the current revenues for the year, or out of some fund then within the Immediate control of the city or count See, Stevenson v. Blake, 131 Tex. 103, 113 S.W.2d 525 (19387;~ Bexar Counts v. Hatley 1 g ;::I 254, 150 S.W.2d 980 (1941); McNeil1 v. Citv of Waci i 3, 33 S.W. 322 (1895); Foerd County v. Sendifer 105'Tex. 420 151 S.W. 523 (1912); Attorney General's Opinion ho. TV-1556(1942). In the case of Stevenson v. Blake 88 S.W.2d 773 (Tex.Civ.App.1935), affirmed in Stevenson v: Blake, 131 Tex. 103, 113 S.W.2d 525 (1938), the 'Commissioners'Court had en- tered into'e contract with certain attorneys and pursuant to such contract the attorneys were to perform certain duties for which they were to be compensated$3,000.00. This sum was to -757- . . Hon. Henry Wade, page 4 (C-156) be paid In three Installments. The first installmentof $l,OOO.OO was due shortly after the making of the contract in July of 1935* the second installmentof $l,OOO.OO was due in February of 1936; and the balance upon completion of the contemplatedlitigation. The court in Stevenson v. Blake, 88 S.W.2d 733 (Tex. Civ.App. 19351, in ‘holdinnthe contract lnv,alldas being in -~__~~~~” contraventionof the constitutionalrestrictionfound in Sec- tion 7 of Article XI of the Constitutionof Texas stated thatt 1, the validity of such contract is de- termi&bb;e’bythe good-faithintention o? the parties, at the time of contracting,as to whether _ the county’s obligation is, upon the one hand, to be paid out of unappropriatedrevenues then in hand or to be collected during the year of the contract, and lawfully available for the purpose, or, upon the other hand, out of revenues to be collected af- ter the terminationof that fiscal year. In the first case, thencontract does not contravene the constitution.ellimitation;in the second, it does,.” As the.contract in the Instant situation calls for anuual payment&ver a period of ~threeyears, and would not be payable solely out of current revenues, we are of the opinion that such e contract would be invalid unless the constitutional restrictionsfound In~Section7 of~ArticleXI of the Constitu- tion had first been c~ompliedwith. In regard to your question concerningwhether the Com- missioners’Court can ratify the action of the individualmem- bers and then assume the obligationof paying for the services rendered landto be re’nderedas they become due in the future, tkets stated in 15 Tex.Jur.2d,Countieg, Section 96, page 322, : ‘IAcontract the commissioners’court has au- thority to make may be binding by virtue of subse- quent acts of the court, although the agent making it had no authority to enter ‘intoit.. Thus where ‘. the commissioners’court, with knowledge of the lack of authority of an agent to enter into a contract, elects to accept its benefits, it thereby ratifies the contract and the county is estopped to deny its validity. . . .” See also, Gussett v. Nueces County 235 S.W. 857 (Tex.Com.App. 1921); Morrison v. Kohler, 207 S.Wl2d 951 (Tex.Civ.App.1948,. error ref. n.r.e.1. -758- . . Hon. H,?nryWade, page 5 (C-156) In view of the foregoing authority, we are of the opinion that the Commissioners* Court could ratify the action of individualmembers of the Commissioners'Court if the con- tract so ratified Is one which the Commissioners'Court had authority to make and which was not in excess of the powers of the CoutmissionerstCourt. Your third question being answered in the affirmative, it becomes unnecessary to answer your fourth question. The County of Dallas may hire professional services without advertisingfor bids. The com- petitive bid provisions of Article 2368a, Vernon's Civil Statutes, exempt professionaland personal services requiring technical skill and experienoe. A professional service contract extending over a period of three years and not payable out of current revenues would be invalid unless the provisions of Section 7 of Article XI of the Con- stitution of Texas were first complied with. The CommissionersCourt may ratify the action cf the individual members of the Commissioners' Court if the contract so ratified is one which the C.ommissionerslCourt had authority to make and which was not in excess of the powers of the Com- missionerst Court. Yours very truly, WAGGONER CARR PB:wb APPROVED: OPINION COMMITTEE W. V. Geppert, Chairman Faul Phy William Allen H. Gr:ldyChandler APPRO'IBDFOR THB ATTORNEY GENERAL EY: :;tantonStone -759-