Did a Louisiana mayor need a new council vote to sign a contract for an approved budget project?

Plain-English summary

Scott's mayor asked whether a project contract had to return to the town council after the council approved the budget, and whether the council had to award a bid for a budgeted project. The Attorney General said the approved budget could serve as the council's authorization for a Lawrason Act mayor to sign a contract for the budgeted project.

For bid projects, the opinion said the public entity could designate an official or employee to receive and open bids and could authorize a purchasing director, finance director, mayor, or other designee to identify the lowest responsible bidder. Municipal procurement policies could define those roles, as long as they did not conflict with the Public Bid Law. The syllabus stated that a mayor could select the bidder alone when authorized by ordinance or procurement policy.

Currency note

This opinion was issued in 2001. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Common questions

Did the engineer's contract need another council vote after the project was budgeted?
The AG said a budget approved by the council and containing the project authorized the mayor to sign the contract for that project as budgeted.

Did the council have to open every bid itself?
No. The opinion said the public body could designate an official or employee to receive, open, and read bids.

Could the mayor identify the lowest responsible bidder?
The opinion said the public entity could authorize the mayor or another designee to make that identification. Its syllabus tied the mayor's selection authority to an ordinance or municipal procurement policy.

Background and statutory framework

R.S. 39:1311 described the spending authority created by an adopted budget. The AG read it together with R.S. 33:404's mayoral contract power and the council's initial authorization role. For competitive bidding, the opinion quoted R.S. 38:2214A and discussed how a public entity could designate bid-opening and bidder-selection duties.

Citations and references

• R.S. 39:1311
• R.S. 33:404
• R.S. 38:2214A

Source

• Landing page: https://www.ag.state.la.us/Opinions
• Original PDF: https://www.ag.state.la.us/Opinion/Download/01-0014

Original opinion text

March 19, 2001
OPINION 01-14

Ms. Hazel D. Myers, Mayor
P.O. Box 517
Scott, LA 70583

Dear Mayor Myers:

This office is in receipt of your request for an opinion of the Attorney General in regard to approval needed for contracts included in the budget. With respect to this matter you ask the following:

1) When a project is budgeted and Council approved, does agreement with the engineer for that project have to go back in front of Council for approval or can the Mayor sign?

2) When a project is budgeted and Council approved, bids are advertised and we follow the bid law, does it have to be brought in front of Council to award the bid?

R.S. 39:1311, "Budgetary authority and control", sets forth in Paragraph (C) as follows:

The adopted budget and any duly authorized amendments required by this Section shall constitute the authority of the chief executive or administrative officers of the political subdivision to incur liabilities and authorize expenditures from the respective budgeted funds during the fiscal year.

A mayor of a Lawrason Act municipality has the power to sign all contracts on behalf of the municipality under R.S. 33:404, but the town council must initially authorize such action which can be by adoption of the annual budget or an amendment of the budget. Atty. Gen. Op 91-516. Therefore, after a budget is approved that includes the project, in accordance with R.S. 39:1311, we find the Mayor has the authority to sign a contract for that project as budgeted.

With regard to a budgeted project that is subject to bid, we must look to R.S. 38:2214A, which provides:

The public entity desiring to let a public contract shall, in its resolution

Page 2

Mayor Hazel D. Myers
OPINION 01-14
Page 2

providing for the contract or purchase and for the advertisement for bids, designate the time and place that the bids will be received and shall at that time and place publicly open the bids and read them aloud. * * * *

We have previously found that such a bid opening need not be in a meeting of the public body, but that the public body may designate an appointed official or employee to receive, open and read the bids received. Atty. Gen. Op. 91-123. It also appears to be within the purview of this provision for the public entity to authorize the purchasing director, director of finance, mayor or other designee to identify the lowest responsible bidder. That having been done, the mayor would then be authorized to contract, as indicated above, for expenditures which have been budgeted. Political subdivisions may, by home rule charter or ordinance, adopt their own procurement policies, not inconsistent with the Public Bid Law, which delineates lines of authority and responsibility in the procurement process. While it may be reasonable for the governing body of a smaller public entity to review the selection of every low bidder and award every contract, such practice would be extremely burdensome for a large entity which may award hundreds or even thousands of contracts each month.

We hope this sufficiently answers your inquiry, but if we can be of further assistance, do not hesitate to contact us.

Sincerely yours.

RICHARD P. IEYOUB
Attorney General

BY:_______
BARBARA B. RUTLEDGE
Assistant Attorney General

RPI/bbr

Page 3

Mayor Hazel D. Myers
OPINION 01-14
Page 3

OPINION 01-14

71 - Municipalities
77 - Officers, Local & Municipal
R.S. 39:1311

A mayor of a Lawrason Act municipality
has the power to sign all contracts on
behalf of the municipality that the town
council has adopted in the budget. The
Mayor alone can select the lowest
responsible bidder for a contract when
so authorized by ordinance or municipal
procurement policy.

Ms. Hazel D. Myers, Mayor
P.O. Box 517
Scott, LA 70583

Date Received: Jan. 11, 2001
Date Released: March 19, 2001

BARBARA B. RUTLEDGE
Assistant Attorney General