Section 8.21 Contracts for Public Improvements

• Library: Local Government Deskbook (2017 Ed.)

D. (§8.21) Contracts for Public Improvements

Most public improvements are accomplished by contract between the municipality and private persons. For contracts between municipalities, see Chapter 11 of this deskbook. A strict body of law has grown up around municipal contracts, largely to protect the public from liability for agreements not properly authorized and solemnized.

Section 432.070, RSMo 2016, provides that no city can enter into a contract unless it is within the scope of its powers or expressly authorized by law and unless it is in writing and based on future consideration. The provisions of this statute are mandatory. Needles v. Kansas City, 371 S.W.2d 300 (Mo. 1963). Contracts must be authorized by ordinance of the municipality’s legislative body. See:

· Openchain-Boyer Co. v. Vill. of Mercer, 17 S.W.2d 376 (Mo. App. W.D. 1929)

· Homebuilders Ass’n of Greater Kansas City v. Kansas City, 431 S.W.2d 111 (Mo. banc 1968), subsequent appeals, 464 S.W.2d 5 (Mo. banc 1971), 509 S.W.2d 134 (Mo. banc 1974)

Persons dealing with municipalities are charged with notice of the legal restrictions on the power of municipal officials to contract on behalf of the city. Needles, 371 S.W.2d 300. A city is not bound by a contract entered into by the mayor under a vague and uncertain council journal entry. State ex rel. Prichard v. Ward, 305 S.W.2d 900 (Mo. App. W.D. 1957). The doctrine of estoppel does not validate void contracts signed by municipal officers. Eureka Fire Hose Mfg. Co. v. City of Portageville, 106 S.W.2d 513 (Mo. App. S.D. 1937). That the municipality has received benefit of contract does not make the municipality liable on theories of ratification, estoppel, or implied contract. Layne v. City of Windsor, 442 S.W.2d 497 (Mo. 1969); Duckett Creek Sewer Dist. of St. Charles Cnty. v. Golden Triangle Dev. Corp., 32 S.W.3d 178 (Mo. App. E.D. 2000). A person is not denied due process or equal protection of the laws when the city refuses to pay for goods delivered to the city without a contract in writing, awarded after public bids, and certified as within budget appropriations sufficient to pay for the goods. Donovan v. Kansas City, 175 S.W.2d 874 (Mo. banc 1943), appealed modified, 179 S.W.2d 108 (Mo. banc 1944), appeal dismissed, 322 U.S. 707 (1944).

On the other hand, if a purported contract is within the general power of the municipality to make, the city may not recover payments made under an invalid contract. Grand River Tp., De Kalb Cnty....