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B-226503 1 (1987-09-24)

handle is hein.gao/gaobadmvw0001 and id is 1 raw text is: 


V.         The Comptroller General
           of the United States
           Washington, D.C. 20548
           Decision


                      Department of Education--Payment for Sewer

           Matter o   Services

           File:      B-226503

           Date:      September 24, 1987


           DIGEST

           While the Department of Education (Department) may not pay a
           tax bill levied by the Town of Seneca Falls, New York for
           sewer services provided in 1986 to property owned by the
           Department, it must pay the Town the reasonable value of the
           services on a quantum meruit basis. The services would have
           constituted a permissible procurement, the government
           received and accepted the services, and the Town acted in
           good faith. The GAO offers a formula to assist the
           Department in calculating the dollar value of the benefits
           received.

           DECISION

           As discussed below, GAO finds that the Department of
           Education (Department) is not authorized to pay a 1986 tax
           bill levied by the Town of Seneca Falls (Town) for sewer
           services rendered to a defunct college which the Department
           acquired by foreclosure in 1985. Under well-established
           principles of constitutional law, a state may not impose an
           involuntary exaction on the federal government or its
           activities. For the same reason, Seneca Falls cannot
           enforce an oral compromise agreement against the Department
           to pay a lesser sum than the amount billed since the charges
           were not based on the actual amount of water and sewer
           services received and accepted by the Department. However,
           the GAO finds that Seneca Falls is entitled to be paid for
           the reasonable value of the sewer services it rendered to
           the Department on a quantum meruit basis. The GAO offers a
           formula to assist the Department in determining the amount
           of this payment.

           BACKGROUND

           In the late 1970s, Eisenhower College, located in Seneca
           Falls, New York, began to default on a numoer of housing and

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