The city of Shreveport needs new garbage trucks, like in yesterday or, really, last year.
Currently, the city is leasing 10 garbage trucks for $700 per month per truck.
The rental price of the trucks is expected to increase next year to $760 per month. And the city will need to rent 20 trucks per month versus 10.
The city has had on order 18 trucks since last year.
The price quoted in response to an Invitation For Bid (IFB) was $163,000 per truck. These funds have been budgeted.
Delivery of the trucks is expected this year, contingent on no more major supply chain issues.
Now the company assembling the trucks has advised that the cost per truck will be $17,000 to $18,000 more per truck.
The company also has said if the city does not agree to pay the increase, the trucks will be sold to another municipality willing to pay the extra expense.
To make matters worse, getting back in line to get new trucks will result in a delay of perhaps a year and a price increase to at least $182,000 per truck.
Councilman John Nickelson expressed outrage over what he correctly classifies as "extortion" by a city vendor.
Public Works Director Gary Norman identified the city's options as limited, and not good ones at that.
The city can pay more and get the trucks.
The city can refuse to pay the price increase and, barring a change of position by the vendor, not get the trucks.
The city can sue to attempt to make the company deliver the trucks at the agreed price and/or for damages.
To complicate the matter, the Louisiana Public Bid Law may prohibit the city paying the additional moneys after accepting the bid.
Simply put, it’s a complicated legal, financial and business need situation.
Representatives of the garbage truck vendor are expected at the council's next work session or the regular meeting on Tuesday, April 26.
The Shreveport city attorney's advice to the council should be carefully considered, since generally it has been somewhat suspect under the current city attorney.
Critical evaluation of legal issues and practical determinations are often ignored and replaced with litigation. Last year, the city attorney's office expended more than $1 million in fees for outside attorneys.