Opinion ID: 1805246
Heading Depth: 1
Heading Rank: 4

Heading: Whether the Board Acted Illegally or Capriciously by Violating the Bidding Protocols.

Text: As a final matter, we consider the board's challenge to the district court's conclusion that it acted illegally or arbitrarily and capriciously by violating the bidding protocols. Specifically, the district court found that such a violation occurred when the board negotiated with only one of the unsuccessful bidders rather than reopening the bidding to all bidders under a new protocol. The district court's conclusions were predicated on the language of the motion that the board passed in rejecting the four initial bids submitted prior to its May meeting. That motion purports to reject all bids, including Citadel's initial bid. This motion was followed by another motion conditionally accepting Citadel's subsequent $14 million cash bid. Although the form of the board's motions can be interpreted as action on a new bid that was independent of Citadel's previous bid and thus outside the bidding protocol, we believe that such an interpretation would exalt form over substance. In Article V of the bidding protocols, the board reserved the right to continue negotiations with any of the bidders after the initial bids were submitted. We believe that action by the board or its president to advise Citadel to submit any new offer in writing and to consider that offer at the meeting that had been scheduled to review all bids was a form of further negotiation with respect to Citadel's bid. In conclusion, we note that petitioners, in an effort to sustain the judgment of the district court, have lodged several arguments that suggest that the sale of WOI-TV is not in the best interests of Iowa State University or the State of Iowa. We do not address these conclusions because we have determined that the board of regents possessed the ultimate authority to pass on that issue of long-range educational policy and to implement that policy by acting to sell WOI-TV. Although petitioners' arguments on the merits of the board's policy decision are not without substance, they do not provide a ground for overturning the policy choice of an administrative agency within its scope of authority. After due consideration of the issues presented, we conclude that the judgment of the district court must be reversed. REVERSED.