Coastal Recycling, Inc. v. Connors

Summary

The Rhode Island Supreme Court held that the Johnston Town Council had authority under the town charter and state law to reject the purchasing officer’s selection of Coastal Recycling’s bid for a municipal refuse-collection contract. The council acted within its discretion in rejecting Coastal’s bid because it failed to satisfy material bid-security requirements. However, after rejecting the bid, the council could not award the contract to the second-lowest bidder and was required to order a new solicitation.

Holdings

1. Chapter 55 of title 45 did not preempt Johnston's ordinance and home-rule charter provisions allowing the Town Council to review and reject a purchasing officer's bid decision.
2. The Town Council acted within its sound discretion in rejecting the purchasing officer's decision to award the contract to Coastal.
3. After rejecting Coastal's bid, the Town Council was required to order a re-solicitation of bids and lacked authority to recommend that Rambone be awarded the contract directly.

Questions Presented

1. Whether Rhode Island's municipal-contracting statute preempted Johnston's ordinance and home-rule charter provisions permitting the Town Council to review or reject a purchasing officer's bid decision.
2. Whether the Town Council acted within its discretion in rejecting the purchasing officer's award to Coastal based on Coastal's failure to satisfy the bid-security requirement and other bid specifications.
3. Whether, after rejecting Coastal's bid, the Town Council had authority to recommend awarding the contract directly to Rambone or instead was required to order a re-solicitation of bids.

Disposition

reversed_and_remanded