N.E.R.I. Corporation v. New Jersey Highway Authority
Case Date: 12/31/1996
Docket No: SYLLABUS
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(This syllabus is not part of the opinion of the Court. It has been prepared by the Office of the Clerk for the
convenience of the reader. It has been neither reviewed nor approved by the Supreme Court. Please note that,
in the interests of brevity, portions of any opinion may not have been summarized).
Argued September 9, 1996 -- Decided December 31, 1996
Garibaldi, J., writing for a majority Court.
The issue in this appeal is whether the New Jersey Highway Authority Act, N.J.S.A. 27:12B-l to -26 (the
Act), requires the New Jersey Public Highway Authority to publicly bid its towing and storage contracts for the
Garden State Parkway.
The New Jersey Highway Authority (Authority) contracts with private entities to provide towing and
roadside services to Parkway motorists. The Authority regulates the maximum chargeable fees that a tower may
charge for roadside assistance and towing services. In addition, if a vehicle requires repair, fees for parts and
labor are set in accordance with the current edition of Chilton's Labor Guide and Parts Manual.
Prior to 1990, the Authority automatically renewed towing contracts absent any complaints filed with the
Authority or the State Police regarding the current towing service provider. After N.E.R.I.'s action was
commenced in 1989, however, the Authority instituted an informal rating system, the Mooney System, designed
to assist the Authority in selecting towing service providers. Under that system, interested towers submitted
information to the Authority in a formal application. The Authority employee who devised the system then
evaluated the applications and numerically ranked each prospective tower according to certain criteria. The
applicant accumulating the greatest number of points was awarded the towing contract. New applicants were not
investigated. Under both systems of selection, the Executive Director of the Authority ultimately approved and
signed all contracts.
In 1994, the Mooney System was refined. When towing contracts expire, the Authority now publishes
a notice of the Request for Proposal (RFP) , announcing that the Authority is accepting sealed proposals for
towing services. A six-member committee then reviews, evaluates and rates all submitted proposals applying
various criteria. The contractor accumulating the most points and meeting the Authority's qualifications is
recommended to the Executive Director for selection.
Sevell's Auto Body Co., Inc. (Sevell), has exclusively provided all roadside and towing services between
mile posts l32 and l45.6 since the Parkway's opening forty years ago. Because the Authority had first-hand
knowledge of Sevell's performance, its contracts were renewed in l986 and l99l without formal application. In
l984, Joseph Neri, the majority stockholder of N.E.R.I. Corporation, a provider of towing, storage and auto repair
services, submitted a formal application to the Authority seeking the award of a l986 towing contract covering the
same mile posts Sevell had been servicing. Neri's application, however, was rejected in favor of renewing
Sevell's existing contract.
In l989, Neri filed an action against the authority and the Parkway, seeking to prohibit the authority from
awarding towing licenses without public bidding; to void Sevell's towing contract; to grant the contract to Neri
and to recover attorney's fees. Thereafter, in l99l, Sevell's towing contract was again renewed for a five-year
period and the contract remains in effect. In l993, Neri filed an amended complaint requesting that the court
declare the contract between the Authority and Sevell void; to order the Authority to require public bidding for
towing contracts; to direct the authority to permit Neri to submit a bid for the contract; and to place a one or
three-year limit on all towing contracts.
The trial court granted Neri's motion for summary judgment, finding that under N.J.S.A. 27:12B-5.2
(Section 5.2) all Parkway towing and storage contracts are subject to public bidding. Because the contract
between the Authority and Sevell did not comport with the statute's formal bidding requirements, it was
declared void.
The Appellate Division reversed, holding that Section 5.2 does not require the Authority to publicly bid
towing and storage contracts as such agreement fall within the statute's public convenience exception. The
Appellate Division, however, ordered the Authority to accept and evaluate proposals from competing contractors
and to establish relevant objective criteria for the evaluation of applicants for new contracts.
The Supreme Court granted Neri's petition for certification and the Authority's cross-petition for
certification.
HELD: N.J.S.A. 27:12B-5.2 requires public bidding for all Garden State Parkway towing and storage contracts.
1. The award of towing contracts do not fall within N.J.S.A. 27:l2B-14, which is narrow in scope and applies only
to projects that require acquisition of an interest in Authority property, such as by easement, license or lease.
(pp.8-9)
2. The Legislature intended N.J.S.A. 27:12B-5.2 to govern the Authority's power to contract in areas separate
from those governed by section 14 and applies to different types of services, such as towing and storage . (pp. 9-11)
3. Even though a private contractor supplies the emergency roadside service that the Authority is required to
provide motorists, that the cost of the service is passed directly to the consumer and not paid out of the state
treasury does not remove the service from the application of section 5.2. (pp. 11-14)
4. Public bidding statutes exist for the primary benefit of the taxpayer and must be construed with sole reference
to the public good and rigidly adhered to by courts to guard against favoritism, improvidence, extravagance, and
corruption. (pp. 15-16)
5. Towing and storage contracts do not fall within Section 5.2's exemption of professional services. (pp. 16-18)
6. Statutory exceptions to public bidding requirements should be strictly construed so as not to dilute public
policy or permit a public body to avoid legislative enactments. To read the public convenience exception
broadly to exclude towing contracts from the application of Section 5.2 would substantially impair the public good
safeguarded by competitive public bidding. (pp. 18-22)
7. The Legislature addressed the safety concerns of stranded motorists by providing in Section 5.2 that contracts
be awarded to the lowest responsible bidder. There are many factors bearing on the responsibility of the
towing contract bidder. (pp. 23-25)
8. That the Legislature explicitly exempted towing contracts from public bidding in the local contracts law statute
does not mean that the Legislature inteded to exempt towing contracts from Section 5.2. Had the Legisilature so
intended, it would have explicitly done so, as it did in N.J.S.A. 40A:11-5(1)(u). (pp. 26-27)
9. Because of the disruption that would be caused if all current towing contracts were immediately declared void,
the public bidding requirements will only be applied to all new towing contracts as they terminate or that have
been stayed pursuant to the Court's Order. (p. 28)
Judgment of the Appellate Division is REVERSED.
JUSTICE STEIN filed a dissenting opinion in which he considered the Court's reading of the
Authority's bidding statute to be unduly literal. In addition, Justice Stein found that the willingness on the part
of the Legislature to exempt municipal and county towing contracts from mandatory competitive public bidding
strongly suggested that a parallel exemption for the Authority's towing contracts would be consistent with the
Legislature's objective.
CHIEF JUSTICE PORITZ and JUSTICES HANDLER, POLLOCK, O'HERN, GARIBALDI and
COLEMAN join in this opinion. JUSTICE STEIN filed a separate dissenting opinion.
SUPREME COURT OF NEW JERSEY
N.E.R.I. CORPORATION, and
Plaintiffs-Appellants,
v.
NEW JERSEY HIGHWAY AUTHORITY,
Defendant-Respondent and
and
SEVELL'S AUTO BODY CO., INC.,
Defendant-Respondent.
Argued September 9, l996 -- Decided December 31, 1996
On certification to the Superior Court, Appellate
Division, whose opinion is reported at
282 N.J.
Super. 460 (l995).
Harvey Fruchter and Carrie Ferraro argued the
cause for appellants and cross-respondents.
William Harla argued the cause for respondent
cross-appellant (DeCotiis, Fitzpatrick &
Gluck, attorneys).
William J. Pollinger argued the cause for
respondent.
The opinion of the Court was delivered by
GARIBALDI, J.
The sole issue presented by this appeal is whether the New
Jersey Highway Authority Act, N.J.S.A. 27:12B-1 to -26 (the Act),
requires the New Jersey Public Highway Authority (Authority) to
publicly bid its towing and storage contracts for the Garden
State Parkway (Parkway). In 1952, the New Jersey Legislature created the Authority and vested it with the power to build, operate, and maintain a safe and modern highway system. N.J.S.A. 27:12B-4. Specifically, the Authority is vested with the power to operate the Parkway. N.J.S.A. 27:12B-20. The Legislature also granted the Authority certain enumerated powers. N.J.S.A. 27:12B-5. One of those powers is "[t]o make and enter into all contracts and agreements necessary or incidental to the performance of its [the Authority's] duties and execution of its powers under this act." N.J.S.A. 27:12B-5(o). Section 14 of the Act enables the Authority to contract with parties "desiring the use of any part" of an Authority project. N.J.S.A. 27:12B-14. In 1968, the Legislature amended the Act to require public bidding on all contracts. N.J.S.A. 27:l2B-5.2. The Legislature declared that the Act, "being necessary for the welfare of the State and its inhabitants, shall be liberally construed to effect the purposes thereof." N.J.S.A. 27:12B-24.
Most of the facts have been stipulated. The Authority contracts with private entities to provide towing and roadside services to Parkway motorists. Each towing contractor is granted the exclusive right to service one of the Parkway's fifteen "zones" for a five-year period. In return, the Authority acquires a fixed percentage of the tower's fees that are received from motorists. The Authority's most recent Request for Proposal (RFP) entitles the Authority to the following percentages of the tower's gross receipts: under $12,000.00 -- 3%
$12,000.00 to $16,000.00 -- 4%
Over $16,000.00 -- 5%
The Authority regulates the maximum chargeable fees that a
tower may charge for roadside assistance and towing services.
N.J.A.C. l9:8-2.12. If a vehicle requires repair, however, fees
for parts and labor are set in accordance with the current
edition of Chilton's Labor Guide and Parts Manual. Ibid.
automatically renewed towing contracts absent any complaints
filed with the Authority or the State Police regarding the
current towing service provider.
In 1994, the "Mooney System" was refined. When towing
contracts expire, the Authority now publishes a notice of the
"RFP" in three newspapers announcing that the Authority is
accepting sealed proposals for towing services. A six-member
committee reviews, evaluates, and rates all submitted proposals.
Selection criteria include, but are not limited to, the
following: reliability, experience, response time, acceptance of
credit cards, adequate equipment and personnel to safely handle a
variety of traffic and weather conditions, location of storage
and repair facilities, security of vehicles towed and stored, and
maintenance of adequate liability insurance.
awarded to incumbents and two were awarded to new towing
contractors.
In 1990, while the Authority was determining the renewal of
Sevell's towing contract, it considered but again rejected Neri's
1984 application. Although the 1984 application did not contain
current information, Ms. Mooney never contacted Neri for updated
data. In 1991, Sevell's towing contract was renewed for a five-year period and the contract remains in effect.
the personal safety of motorists justifies application of the
"public convenience" exception. The first question that requires resolution is whether N.J.S.A. 27:12B-14 (Section 14) or N.J.S.A. 27:12B-5.2 (Section 5.2) controls. The Authority contends that towing contracts fall within section 14, and therefore, section 5.2's public-bidding requirement is inapplicable. Both lower courts disagreed, the Appellate Division finding that section 14 applies only to "projects which require acquisition of an interest in Authority property, such as by easement, license or lease." N.E.R.I., supra, 282 N.J. Super. at 464. We agree. In relevant part, section 14 provides:
The Authority is hereby authorized to fix, revise,
charge and collect tolls and charges for the use of
each project and the different parts or sections
thereof, and to contract with any person, partnership,
association or corporation desiring the use of any part
thereof, including the right-of-way adjoining a paved
portion, for placing thereon telephone, telegraph,
electric light or power lines, gas stations, garages,
stores, hotels, and restaurants, or for any other
purpose except for tracks for railroad or railway use,
and to fix the terms, conditions, rents and rates of
charges for such use; provided, that a sufficient
number of gas stations may be authorized to be
established in each service area along any project to
permit reasonable competition by private business in
the public interest .... Section 14 was adopted as part of the original legislation creating the Authority in 1952. L. 1952, c.16, §14. It is narrow in scope and only applies to an enumerated list of projects or for other purposes requiring an acquisition of an interest in Authority property. See Yacenda Food Mgmt. Corp. v. New Jersey Highway Auth., 203 N.J. Super. 264, 274 (App. Div. 1985) (holding section 14 authorizes Authority to enter into restaurant service contracts); Walter Reade Inc., v. Jennis Tp., 36 N.J. 435, 438 (1962) (stating section 14 authorizes Authority to "place on the [Parkway] project" physical entities such as gas stations and restaurants). Section 5.2 provides: The New Jersey Highway Authority, in the exercise of its authority to make and enter into contracts and agreements necessary or incidental to the performance of its duties and the execution of its powers, shall adopt standing operating rules and procedures providing that, except as hereinafter provided, no contract on behalf of the authority shall be entered into for the
doing of any work, or for the hiring of equipment or
vehicles, where the sum to be expended exceeds the sum
of $7,500.00 or, after June 30, 1985, the amount
determined pursuant to subsection b. of this section,
unless the authority shall first publicly advertise for
bids therefor, and shall award the contract to the
lowest responsible bidder; provided, however, that such
advertising shall not be required where the contract to
be entered into is one for the furnishing or performing
services of a professional nature or for the supplying
of any product or the rendering of any service by a
public utility subject to the jurisdiction of the Board
of Public Utilities of this State, and tariffs and
schedules of the charges made, charged, or exacted by
the public utility for any such products to be supplied
or services to be rendered are filed with the said
board.
The plain language of the sections demonstrates that the Legislature intended section 5.2 to govern the Authority's power to contract in areas separate and distinct from those governed by section 14. Section 14 authorizes the Authority to contract with those seeking use of Parkway property for limited purposes, such as installing telephone and electricity lines, or building gas stations and hotels. Conversely, section 5.2 applies to different types of services, such as towing and storage, that do
not require an acquisition of an interest in Authority property
and are not specifically governed by section 14. We now examine section 5.2 to determine if it applies to towing contracts. First, we reject the Authority's argument that section 5.2 does not apply because the Authority is not required to expend funds in awarding towing contracts. Thus, the Authority maintains that the risks against which bidding laws tend to protect, such as favoritism and corruption, do not exist. This same argument was rejected in McKim v. Village of South Orange, 133 N.J.L. 470 (Sup. Ct. 1945). In McKim, the court set aside a municipal ordinance that authorized a municipality to contract with a garbage collector. Id. at 474. Although the garbage collector obtained payment from municipal homeowners, and not the municipality, the court ruled that public bidding was required. Id. at 473-74. The court reasoned: Splitting the total cost among the property-users by a system that leaves to them no choice but to incur and pay the expense does not alter the fact that in essence an award of public work at a price of many thousands of dollars is being made to a private contractor without competition in bidding.
That rationale has been repeatedly applied by courts interpreting public bidding requirements in the area of municipal contracts. See Pied Piper Ice Cream, Inc. v. Essex County Park Comm'n, 132 N.J. Super. 480, 485-86 (App. Div. 1975) (holding
that park commission was bound by compulsory bidding provision
for ice cream supply contract); Schnell v. Township of Millburn,
127 N.J. Super. 155, 159 (App. Div.), aff'd,
66 N.J. 137 (1974)
(requiring municipality to publicly bid contracts for supply of
burglar alarm panels); Kurman v. City of Newark,
124 N.J. Super. 89, 93-94 (App. Div.), certif. denied,
63 N.J. 563 (1973)
(holding towing and storage contract was subject to public
bidding requirement).
needed to pay the towing bill; any excess proceeds would become
the property of Newark. Id. at 91-92. The court found that the
public bidding requirement applied to Newark even though Newark
expended no public funds, reasoning:
The panel concluded: "Statutes calling for public bidding are for
the benefit of the taxpayers and not the bidders [and] should be
construed with sole reference to the public good and rigidly
adhered to by the court to guard against favoritism,
improvidence, extravagance and corruption." Id. at 94 (citation
omitted).
construed in a common sense manner to accomplish the legislative
purpose." State v. Pescatore,
213 N.J. Super. 22, 28 (App. Div
1986), aff'd,
105 N.J. 441 (1987) (citing In re Barnert Memorial
Hospital,
92 N.J. 31 (1983)). The practice of public bidding is
universally recognized and deeply embedded in the public policy
of this State. See, e.g., Hillside Tp. v. Sternin,
25 N.J. 317,
322 (1957) (citing Waszen v. City of Atlantic City,
1 N.J. 272,
283 (1949); Tice v. Long Branch,
98 N.J.L. 214 (E. & A. 1922)).
Public bidding statutes exist for the primary benefit of the
taxpayer not the bidder; and must be construed with "sole
reference" to the public good and rigidly adhered to by courts to
guard against favoritism, improvidence, extravagance, and
corruption. See Kurman, supra, 124 N.J. Super. at 94 (citing
Hillside, supra, 25 N.J. at 322). Thus, it is incumbent on this
Court to apply and construct section 5.2 in a manner that
furthers, not frustrates, the legislative goals in establishing
competitive bidding. See Young v. West Orange Redev. Agency,
125 N.J. Super. 440, 443 (App. Div. 1973) ("[w]hile the statutory
regulations of bidding are to be strictly observed, the
application and construction of the statute should be such as to
further, not frustrate, the legislative goals in establishing
competitive bidding").
associated with a lack of public bidding in such instances. We
also acknowledge the important public interests at stake. "[T]he
citizenry as a whole suffers from providing the opportunity for
dishonest or unthinking officials to betray their public trust."
Signacon Controls Inc. v. Mulroy,
298 N.E.2d 670, 673 (N.Y.
1973). We also reject the Authority's contention that the towing contract falls within Section 5.2's exemption of "services of a professional nature." The term "professional services," is not defined in the Act. The Authority insists that towing and storage services fall within that exception because towing services require "special skill or training." The Appellate Division properly rejected the Authority's argument. It relied on the definition of professional services in the Local Public Contracts Law, N.J.S.A. 40A:11-2, which provides: Professional services means services rendered or performed by a person authorized by law to practice a recognized profession, whose practice is regulated by law, and the performance of which services requires knowledge of an advanced type in a field of learning acquired by a prolonged formal course of specialized instruction and study as distinguished from general academic instruction or apprenticeship and training. Professional services may also mean services rendered in the performance of work that is original and creative in character in a recognized field of artistic endeavor.
Other jurisdictions have embraced a similar definition of
the term "profession" in similar contexts. See, e.g., Maryland
Casualty Co. v. Crazy Water Co.,
160 S.W.2d 102, 104 (Tex. Civ.
App. 1942) (stating labor and skill "involved is predominantly
mental or intellectual, rather than physical or manual"); Abbott
v. U.S.,
151 F.Supp. 929, 932 (Ct. Cl. 1957) (finding profession
requires more than an acquired skill); State Bar of Arizona v.
Arizona Land Title & Trust Co.,
366 P.2d 1, 6 (Ariz. 1961)
(defining profession as a "calling in which one professes to have
acquired some special knowledge used by way either of instruction
or advising others or of servicing them in some art"). An examination of section 5.2 and this Court's analysis in Autotote Ltd. v. New Jersey Sports & Expo. Auth., 85 N.J. 363 (1981), discloses that the "public convenience" exception also does not apply. The "public convenience" exception is not
defined in the Act and has not been interpreted in any published
opinion other than that of the Appellate Division in this case.
However, analogies to other statutory "public convenience"
provisions are helpful.
developing this new system and installed demonstration machines
in one of the betting divisions at the racetrack.
1979 racing season." Ibid. The Court observed that the TIM 300
was sophisticated, efficient, cost-effective, and "the best
system available" to the Sports Authority. Ibid.
In Autotote, supra, we observed that statutory exceptions to
public bidding requirements should be "strictly construed so as
not to dilute this policy or permit a public body to avoid
legislative enactments." 85 N.J. at 370 (emphasis added).
Reading the public convenience exception in a broad manner "would
substantially impair the public good safeguarded by competitive
public bidding." Id. at 381 (Schreiber, J., dissenting). The
Appellate Division's approach is unnecessarily broad. The
reliability of any contractor to perform nearly any service on
the Parkway is always very important for the safety of Parkway
patrons. We agree with the trial court's observation that the
likelihood of vehicles stalling on the Parkway is predictable:
The Legislature addressed the safety concerns of stranded
motorists by providing in section 5.2 that the towing contract be
awarded to the "lowest responsible bidder." The term
"responsible" refers to the bidder's quality, fitness, and
capacity to satisfactorily perform the proposed work. See Arthur
Venneri Co. v. Housing Auth. of Patterson,
29 N.J. 392, 403
(1959) (defining "responsibility" within meaning of a statute
requiring award of municipal contract to lowest responsible
bidder as involving experience, financial ability, facilities
necessary to perform contract and moral integrity of bidder); see
also Meadowbrook Carting Co. v. Island Heights Borough,
138 N.J. 307, 313 (1994) (stating "contract must be awarded not simply to
the lowest bidder, but rather to the lowest bidder that complies
with the substantive and procedural requirements in the bid
advertisements and specifications"); Stano v. Soldo Constr. Co.,
187 N.J. Super. 524, 535 (App. Div. 1983) (finding sufficient
evidence to cause fair minded and reasonable person to believe
that it was not in best interests of municipality to award
contract to bidder and therefore sufficient to reject bid on
grounds that bidder was not a "responsible bidder" under N.J.S.A.
40A:11-16). Angeles County Civic Center Auth. v. Superior Court, 500 P.2d 601, 604 (Cal. 1972) (defining term "responsible" as trustworthiness, quality, fitness, and capacity of low bidder to satisfactorily perform proposed work). Most jurisdictions adopt a similar construction of the term "responsible" in the public bidding context. See, e.g., Appeal of Associated Sign & Post, 485 N.E.2d 917, 924 (Ind. Ct. App. 1985) (enumerating relevant factors in determining lowest responsible bidder: financial responsibility, capital, character and reputation, competency and efficiency, energy, experience, facilities, faithfulness and fidelity, fraud or unfairness in previous conduct, honesty, judgment, promptness, quality of previous work, and suitability to particular task); Flynn Constr. Co. v. Leininger, 257 P. 374, 378 (Okla. 1927) (defining responsible as "[s]kill, responsibility, shortest possible period of time, other things being equal, are the things purchased, paid for with the people's money, and the fewer the dollars with which the same things may be purchased the better the bargain"); accord Richland Sch. Dist. v. Central Transp., 560 A.2d 885, 888 (Pa. Commw. Ct. 1989), appeal denied, 581 A.2d 574 (Pa. 1990); Rollings Constr. v. Tulsa Metro. Water, 745 P.2d 1176, 1178-79 (Okla. 1987); G.A. Branch, Associated Gen. Contractors, Inc. v. City of Atlanta, 321 S.E.2d 325, 327 (Ga. 1984). Other pertinent considerations include the bidder's record for reliability and performance, the bidder's efficiency, and the quality of the bidder's past performance of
other contracts and services. See City of Inglewood, supra, 500
P.
2d at 605 n.5.
protects the public from unconscionable rates. This is not to
say, however, that a tower is precluded from submitting a bid
that offers a lower rate than the maximum permitted by N.J.A.C.
l9:8-2.l2. Such a reduction of rates will benefit motorists. The Authority and dissent assert that public bidding is not required for Parkway towing contracts because of the explicit exclusion of towing contracts set forth in the Local Public Contracts Law, N.J.S.A. 40A:11-1 to -49. That the Legislature explicitly exempted towing contracts from public bidding in the local contracts law statute does not mean that the Legislature intended to exempt towing contracts from section 5.2. In view of the plain language of section 5.2 and the different statutory language of N.J.S.A. 40A:ll-5(l)(u), we find no legal support for that position. Indeed, one could reasonably conclude otherwise; had the Legislature intended to exempt towing contracts from public bidding in section 5.2, it would have explicitly done so, as it did in N.J.S.A. 40A:11-5(1)(u).
If the Legislature determines that section 5.2 should
provide the exemption set forth in N.J.S.A. 40A:ll-5(l)(u) or
contain bidding conditions similar to those in N.J.S.A. 5:l0-2l.l
(bids for the New Jersey Sports and Exposition Authority "shall
be awarded to that responsible bidder whose bid . . . is most
advantageous to the Authority . . . upon consideration of price
and other factors") it can so provide. However, the Legislature
has in section 5.2 chosen specifically to exempt certain
contracts from public bidding and has refrained from providing an
explicit statutory exemption for towing contracts. New Jersey has a long-standing policy of requiring competitive bidding for public contracts. The Authority is required, pursuant to section 5.2, to publicly bid contracts for towing and storage services. That section explicitly requires public bidding for all contracts and does not exempt towing contracts. Section 5.2's exceptions for professional services and public convenience do not apply to preclude that requirement. Although the Authority's present selection process is better than its past procedures, control of the bidding process remains in the hands of the Authority and is, of course, subject to change by the Authority. For example, the Authority still refuses to disclose the weighted value it will give to each criterion. The new system, like the old, does not satisfy the strong public
policy that underlies the public bidding requirements of section
5.2.
N.E.R.I. CORPORATION, and
Plaintiffs-Appellants,
v.
NEW JERSEY HIGHWAY AUTHORITY,
Defendant-Respondent and
and
SEVELL'S AUTO BODY CO., INC.,
Defendant-Respondent.
STEIN, J., dissenting.
In a class with motherhood and apple pie, the mandate that governmental contracts be subject to public bidding is almost sacrosanct. Its purpose is "to secure competition and to guard against favoritism, improvidence, extravagance and corruption." Hillside Township v. Sternin, 25 N.J. 317, 322 (1957). Statutes mandating public bidding should be "construed with sole reference to the public good . . . [and] should be rigidly adhered to by the courts." Ibid. But on occasion, insistence on competitive
public bidding can be impractical, formalistic, and inconsistent
with the public interest.
protective of the motoring public. I suspect that the Authority
will promptly solicit legislative intervention to permit the
selection of towers by a competitive process that focuses on
competence rather than price.
As the majority opinion demonstrates, the facts pertinent to
our disposition of this appeal have changed radically since suit
was initiated. Prior to 1990, the Authority did not advertise
for bids or publicly solicit applications for towing contracts.
Towing companies that previously had been awarded contracts for
towing services could anticipate renewal of their contracts
unless complaints concerning the quality of their service induced
the Authority to seek a replacement. Charges for towing services
have been regulated by the Authority since 1975. The facts
stipulated before the Law Division indicate that companies
providing Authority towing services prior to 1990 paid the
Authority a percentage of their revenues.
evaluating each applicant. The Authority employee recommended
that the contract be awarded to the tower with the highest point
score, but her supervisor could make adjustments in the
evaluations and the Authority's Executive Director approved all
contracts.
The motorist whose car breaks down on
the Garden State Parkway is vulnerable,
especially in the late evening or early
morning hours. The Parkway is a limited
access highway and the motorist is cut off
from help except for the assistance provided
by the Authority. The motorist is required
to depend on the services of a contractor
imposed on him or her by the Authority. In
those circumstances the opportunity for
overreaching and exploitation by the
contractor is substantial. Moreover, there
is a legitimate concern for the personal
security of the stranded motorist. This is a
particularly important factor in the
selection process because the contractor not
only removes the vehicle from the Parkway,
either to the nearest exit or to the
contractor's garage, but may transport the
motorist as well. Under those circumstances,
character and integrity are critical elements
in the Authority's selection of a towing
contractor.
The Authority's current Request for Proposal form eliminates
any variable concerning compensation to the Authority. The form
stipulates that each towing company awarded a contract will pay
to the Authority the following percentage of its gross receipts:
Guide and Parts Manual. The Court's decision mandates that those
regulated towing charges must be subjected to competitive
bidding, at rates not to exceed the regulated rate.
A fundamental tenet of statutory construction is that "every
effort should be made to harmonize the law relating to the same
subject matter. Statutes in pari materia are to be construed
together when helpful in resolving doubts or uncertainties and
the ascertainment of legislative intent." State v. Green,
62 N.J. 547, 554-55 (1973). We have often observed that "statutes
[that] deal with the same matter or subject . . . and which seek
to achieve the same overall legislative purpose . . . should and
must be read in pari materia." Mimkon v. Ford,
66 N.J. 426, 433
(1975). Although that principle applies most forcefully when the
statutes were enacted at the same time, "it may appropriately be
applied even when the statutes were adopted at different times
and make no reference to each other." Id. at 434.
concludes that the Legislature did not intend that the exemption
permitting local governments to award towing contracts without
competitive bidding on towing rates should also apply to the
Authority. Ante at ___ (slip op. at 26-27). |