Smith v. City of Riverside

The City of Riverside is a charter city which operates its own water and electrical utility systems. Pursuant to a charter provision permitting the city council to except projects for the extension or development of city-operated public utilities from a general charter requirement of public bidding, the city council elected to use city employees rather than private contractors to effect construction and installation of certain types of city electrical and water facilities. This is an action for declaratory relief and injunction challenging the validity of the city’s action on the principal ground it constitutes a violation of Government Code section 37901 et seq. requiring work on a “public project” to be contracted for and let to the lowest responsible bidder when the expenditure exceeds $3,500.

Plaintiff Smith brought the action as a city taxpayer and as an officer and member of Laborers’ International Union of North America, Local No. 1184. The complaint alleges the city constructed water mains and laterals into and within a private shopping center and into and within a private subdivision without complying with Government Code section 37901 et seq.;…