Alabama Attorney General Opinion 1979-0033

4 # THE ATTORNEY GENERAL STATE OF ALABAMA · MONTGOMERY, ALABAMA 3 [LOGO] File #29 79-00033 January 23, 1979 CHARLES A. GRADDICK ATTORNEY GENERAL Hon. John C. Bailey, Jr. Chairman The Water Works Board Post Office Box 1631 Auburn, Alabama 36830 DO NOT CITE -- See opinion issued to W. Frank Langner, Treasurer and Office Manager of the Oneonta Utilities Board, dated 1-8-1985, A.G. No. 85-00163. Utility Boards - Municipalities Water Works Board may not join Chamber of Commerce, but may, under certain conditions, con- tract with Chamber of Commerce. Dear Mr. Bailey: This office has received your opinion request of January 16, 1979 asking whether the Water Works Board of the City of Auburn, a public corporation, organized under Code of Alabama 1975, §§ 11-50-230 through 11-50-241, may join the Auburn Chamber of Com- merce by paying a membership fee. Your question is to be answered in the negative. Code of Alabama 1975, §11-50-235 sets forth the powers of the Water Works Board. None of these enumerated powers can be construed to permit the Water Works Board to expend funds to pay a membership fee to the Auburn Chamber of Commerce. Therefore, it is the opinion of this office that the Water Works Board of the City of Auburn may not join the Auburn Chamber of Commerce. You also ask whether the Water Works Board may enter into a service contract with the Auburn Chamber of Commerce to provide data and service for a fixed annual compensation. Without more information it is impossible to determine whether the purchase of "data and service" constitutes a legitimate expenditure of the funds of the Water Works Board. However, it is the opinion of this office that the Water Works Board of the City of Auburn may enter into a contract with the Auburn Chamber of Commerce under which, for an adequate consideration, the Chamber of Commerce will perform services for which Board funds may be expended. It should be noted that if upon further examination the purchase of "data and service" is a legitimate expenditure, but not covered by an Hon. John C. Bailey, Jr. January 23, 1979 Page Two exception to the Competitive Bid Law, it will be necessary for the Water Works Board to comply with the provisions of the Com- petitive Bid Law before awarding a contract to the Auburn Cham- ber of Commerce. I do hope that this fully answers your question. If, how- ever, we may be of further assistance, please do not hesitate to call on us. Very truly yours, CHARLES A. GRADDICK Attorney General By- Carol Jean Smith CAROL JEAN SMITH Assistant Attorney General CJS/dwm