AGO IAL 040208b.
Case Date | April 02, 2008 |
Court | New Mexico |
New Mexico Attorney Gen eral Opinions
2008.
AGO IAL 040208b.
April 2, 2008040208bThe Honorable Stuart Ingle
New Mexico
State Senator
2106 West University Drive
Portales,
NM 88130 Re:
Opinion Request - Procurement Code Applicability to Municipal Solid
Waste ContractsDear Senator Ingle:
You requested our advice regarding the applicability of the
Procurement Code, NMSA 1978, §§ 13-1-28 to -199 (1984, as amended
through 2007), to municipal contracts for solid waste collection and hauling.
According to your request and accompanying documentation, municipalities in the
state are entering into multiple-year, exclusive contracts with private
businesses for the provision of solid waste collection and disposal services.
The contracts are awarded without following the provisions of the Procurement
Code, including competitive bidding requirements and limitations on multi-term
contracts. As discussed in more detail below, we believe that, except for home
rule municipalities, municipal contracts with private businesses for solid
waste collection and hauling are subject to the Procurement Code.
"Except as otherwise provided in the Procurement Code," the Code
applies "to every expenditure by state agencies and local public bodies for the
procurement of tangible personal property, services and construction." NMSA
1978, § 13-1-30. In pertinent part, "procurement" means "purchasing,
renting, leasing, lease purchasing or otherwise acquiring items of tangible
personal property, services or construction." Id.§ 13-1-74(A). Accordingly, the Procurement Code applies to a
municipality's purchase of solid waste collection and hauling services, unless
the Code provides otherwise.
Of the exceptions listed in the Procurement Code, two might apply
to a municipality's purchase of solid waste collection and hauling. First, the
Code does not apply to "municipalities having adopted home rule charters and
having enacted their own purchasing ordinances." NMSA 1978, § 13-1-98(K).
Under this exception, a home rule municipality's contract for solid waste
collection and hauling services would not be covered by the Procurement Code,
provided the municipality had adopted a purchasing ordinance under which it
procured the services.
The second applicable exception covers "purchases of publicly
provided or publicly regulated gas, electricity, water, sewer and refuse
collection...
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