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Agenda - Council - 04/22/2008
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Agenda - Council - 04/22/2008
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Council
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04/22/2008
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381 N.W.2d 842 <br />(Cite as: 381 N.W.2d 842) <br />scoreboard agreement executed by the Commission <br />and American Sign violated the public bidding <br />statute and accordingly declared the agreement <br />void. American Sign appealed to the United States <br />Court of Appeals for the Eighth Circuit, contending <br />that the district court erred in ruling that the <br />agreement violated the state public bidding statute. <br />*846 Hubbard cross- appealed, arguing that the <br />district court improperly dismissed its first <br />amendment, equal protection and unlawful <br />delegation claims. The Eighth Circuit Court then <br />certified the two questions mentioned above to this <br />court. <br />1. Whether the Scoreboard System Agreement is a <br />contract for supplies, materials or equipment within <br />the meaning of the public bidding statutes, <br />Minn.Stat.Ann. §§ 471.345, 473.556, and, if so, <br />whether the Scoreboard System Agreement is <br />nonetheless not subject to the public bidding <br />requirement because it falls within the exception <br />provided in Minn.Stat.Ann. § 473.556(7). <br />The powers of the Metropolitan Sports Facilities <br />Commission are enumerated in the 1977 Act <br />establishing the public commission, Minn.Stat. § <br />473.551 -.595 (1984). Exclusive of the specific <br />powers defined in the statute, the legislature granted <br />the Commission "all powers necessary or <br />convenient to discharge the duties imposed by law, <br />including but not limited to those specified in this <br />section." Minn.Stat. § 473.556, subd. 1 (1984). <br />Subdivision 7 of section 473.556 provides, in part: <br />"The commission may contract for materials, <br />supplies, and equipment in accordance with section <br />471.345 [the public . bidding statute] * * *." The <br />Commission and American Sign argue that the <br />scoreboard system agreement is not a contract for <br />materials, supplies or equipment within the meaning <br />of that provision. Thus, they conclude, the <br />Commission was not required to follow the public <br />bidding procedures of Minn.Stat. § 471.345. <br />[1] It appears that the Legislature did limit the <br />applicability of the public bidding statute to <br />contracts that the Commission executed for <br />materials, supplies or equipment. In section <br />473.556, the legislature listed the specific powers of <br />the Commission, powers that include the ability to <br />© 2006 Thomson/West. No Claim to Orig. U.S. Govt. Works. <br />Page 6 of 8 <br />381 N.W.2d 842 Page 5 <br />accept gifts and grants, the ability to execute <br />contracts for services and the ability to enter into <br />use agreements. Only in subdivision 7 of the <br />section, entitled "contracts," wherein the legislature <br />discusses the ability of the Commission to contract <br />for materials, supplies and equipment, does a <br />reference to the public bidding statute appear. <br />Therefore, the Commission was required to follow <br />the public bidding procedure only in executing <br />contracts for materials, supplies . or equipment for <br />the Metrodome. <br />[2] The scoreboard system agreement entered into <br />by the Commission and American Sign is more than <br />a contract for merely materials, supplies or <br />equipment. Although the agreement states that the <br />purpose of the contract is to "supply a Scoreboard <br />System for the use of the Commission," under the <br />agreement the Commission grants more rights and <br />takes on more responsibilities than those required in <br />typical contracts for materials or equipment. The <br />agreement gives American Sign "the right to sell <br />and contract for advertising which is to be exhibited <br />on the Scoreboard System." In the agreement the <br />Commission specifically retains the right to review <br />the advertising and to control the dates and times it <br />is displayed. American Sign has title to the system <br />itself for 15 years and is responsible, for 10 years, <br />for alI the maintenance and the electricity the <br />system uses. The Commission agrees to "use its <br />best efforts to cause" the concessionaire at the <br />Metrodome to stock the products being advertised <br />on the scoreboard system. The allocation of the <br />revenue generated from the advertisements <br />appearing on the scoreboard system is also <br />determined with specificity in the agreement. <br />Many of the features of the agreement are simply <br />beyond any fair meaning of "contracts for materials, <br />supplies and equipment" within the statute. <br />We have recognized that public bidding provisions <br />are to be construed narrowly. In R.E. Short Co. v. <br />Minneapolis, 269 N.W.2d 331, 342 n. 11 <br />(Minn.1978), we noted that the public bidding <br />statute is restrictive and should not be extended to <br />contracts not envisioned by the legislature. In <br />Griswold v. Ramsey County, 242 Minn. 529, 534, <br />65 N.W.2d 647, 651 (1954), we stated: <br />*847 In the absence of a controlling constitutional, <br />_1 7 $ 1111ps:// web2. westlaw. com/ print/printstream.aspx ?prft=HTMLE &destination= atp &sv= Split... 9/27/2006 <br />
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