Request By:
Mr. R. Michael Amyx
Executive Director
Kentucky Municipal League
Suite 201, Bradley Hall
University of Kentucky
Lexington, Kentucky 40506
Opinion
Opinion By: Robert F. Stephens, Attorney General; Walter C. Herdman, Assistant Deputy Attorney General
This is in answer to your letter of June 21 in which you raise the following question:
"Several cities of the second class have recently contacted the League to seek an interpretation as to the effect of HB 33, as passed by the 1978 General Assembly, on the second class city purchasing statute KRS 89.590.
As you know, one provision of HB 33 increased the maximum dollar amount from $2,500 to $5,000 by amending KRS 424.260. Does this statute supersede the provisions found in KRS 89.590 for cities of the second class?
We believe that the provisions of KRS 424.260 as amended by the 1978 legislature supersedes and impliedly repeals the limitation on purchases by a second class city [or any other class as far as that is concerned] where the amount is less than $5,000; as for example that found under the provisions of KRS 89.590 relating to cities operating under the city manager form of government.
The provisions of KRS 424.260 [which was enacted as part of the publication act in 1958] provides that except where a statute specifically fixes a larger sum as a minimum expenditure for requiring bids, no city may contract for materials, supplies, etc., involving an expenditure of more than $5,000 [per 1978 act] without first making newspaper advertisements for bids. In the case of Lyon v. County of Warren, 325 S.W.2d 302 (1959). The Court declared and we quote:
"We are of the opinion that the terms and conditions prescribed by the 1958 act, KRS 424.110 et seq., supersedes and effectively repeals all other conflicting statutory provisions."
See also the case of Vincent v. City of Bowling Green, Ky., 349 S.W.2d 694 (1961).
Though we are convinced that it was the legislature's intent that the bidding requirements found under KRS 424.260 control purchases of all cities regardless of their classification or type of government, we do find where, in the case of City of Owensboro v. Evansvivlle and Ohio Valley Transit Company, Ky., 448 S.W.2d 375 (1969), the Court declared that the provisions of KRS 89.590(2) requiring the advertisement for bids for any contract calling for the expenditure of more than $1,000 were effective for a city operating under the city manager form of government. However, there was no mention in this case of the publication act which was also in effect at the same time though the provisions of KRS 424.260 at that time also had the same $1,000 limitation. In 1972 both statutes were amended to raise the amount to $2,500, however, in 1978, only the provisions of KRS 424.260 were altered to read $5,000.
Thus, in spite of the implication of the City of Owensboro case, we believe, that based on the obvious intent of the legislature as expressed in the case of Lyons v. Warren County, supra, the $5,000 purchase limitation found in KRS 424.260 will govern rather than the $2,500 limitation found in KRS 89.590(2).