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pe SUL 18 Reg
—,. Ss °
DEPARTMENT OF LAW
2614 FIRST NATIONAL BANK BUILDING
ATLANTA, GEORGIA 30303
ROBERT S. WIGGINS
July 16, 1969 MARTIN MCFARLAND
EDWIN L. STERNE
RALPH C. JENKINS
JOHN E. DOUGHERTY
HEHRY L. BOW! EN CHARLES M. LOKEY
CcITy ATTORN t¥ THOMAS F.CHOYCE
FERRIN Y. MATE tws JAMES 8. PILCHER
ASSISTANT CITY AT ORNEY ASSOCIATE CITY ATTORNEYS
HORACE T. WARD
DEPUTY CITY ATTORNEY
ROBERT A. HARRIS
HENRY M. MURFF
CLAIMS ATTORNEYS
JAMES B. HENDERSON
Mr, John } G Johnson Director SPECIAL ASSOCIATE CITY ATTORNEY
3
Model Cicries Program
676 Capi:ocl Avenue, S.W.
Atlanta, Georgia 30315
Dear Mr. Johnson:
I have ia hand your request for an opinion, dated July 14, 1969,
In addition, I have in hand the minutes of the Model Neighborhood
Executiye Board, dated July 1, 1969, It contains, among other
things, a request for an opinion from the City Attorney as to
whether or not a proposed resolution prepared by Mr. Clarence
Coleman is a "legal document",
Further, I have in hand a copy of the proposed resolution, as well
as a copy of Contract No. ME-10-001 which, hereinafter, shall be
referred to as the grant agreement.
It is important to know what a grant is from a legal standpoint.
A grant has been judicially defined as the bestowing or conferring
upon another of some thing, with or without compensation, particu-
larly in answer to the request of the other, In this instance, that
thing is money. One of the conditions of this grant is found in
Section 502 of the grant agreement above referred to. This section
reads as follows:
"SEC. 562. Opportunities for Residents -- In all
werk made possible by or resulting from this
rerecnent, the City and each employer will take
“firme sive action to ensure that residents of
Mr. Johnny C, Johnson, Director
Model Cities Program
Page 2
July 16, 1969
the model neighborhood are given maximum oppor-
tunities for training and employment and that
business concerns located in, or owned in sub-
stantial part by, residents of the model neigh-
borhocd are to the greatest extent feasible
awarded contvacts."
This type of ccctroetua’ cereement is authorized under Section 42 USCA
3303 fa) i :
Therefor2, {i ts ay opinion that a grant, such as we have here, may
be conditioned upon additional performance by the donee, the
recipient of the grant. This type of additional performance is
made manifest by the section of the grant agreement above referred
to,
The general requirements of law relating to competitive bidding
are set forth in McQuillan on Municipal Corporations, Vol 10,
at pp. 321, wherein, it states as follows:
"The provisions of statutes, charters and ordi-
nances requiring competitive bidding in the
letting of municipal contracts are for the
purpose of inviting competition, to guard
against favoritism, improvidence, extravagance,
fraud and corruption, and to secure the best
work or supplies at the lowest price practicable,
and they are enacted for the benefit of property
holders and taxpayers, and not for the benefit
or enrichment of bidders, and should be so con-
strued and administered as to accomplish such
nurpose fairly and reasonably with sole reference
uO tie public interest." (Emphasis added)
The prooe: .! .cselction must now be compared with the verbage of
the sectic. of * © teant agreement above referred to and with the
genera. : ..e% covilewing the resolution, I am of the opinion
that 4h. ui. D.Upesed resolution may be a “legal document",
monei’ ‘e's «7 , »sertiy worded, it is more restrictive than the
Mr, Johnny C. Johnson, Director
Model Cities Program
Page 2
July 16, 1969
section of the grant agreement above referred to in that it places
more of a burden on the donee than was originally envisaged in
the grant acreenent,
The next queskic. thal must be answered is whether or not the
language of tice Vcopcse' resolution is so restrictive that it does
not fvilfiit the gerc-u1 renuirements of law relating to competitive
bidd':3. Ten’ ~ainws., ik is too restrictive.
The reese for ‘s+ cpinien is that it is necessary for the donee,
the City ©. %.. 5... «is obtain the contracts at the lowest possible
price consosu1t wii. both the conditions of the grant agreement
and the general law. This objective, in all probability, cannot be
obtained under the language of the proposed resolution under con-
sideration,
Therefore, we would respectfully suggest that the proposed resolution
be modified along the lines of tha proposed resolution attached
hereto so that both the particular section of the grant agreement
(SEC. 502) and the general law can be satisfied,
Should you wish any additional: informa with respect to this
problem, please feel free to contact
Cify Attorney
HLB: cwh