Its unfortunate that skin color, as in race, has become a deciding vote factor for several members of the Shreveport City Council.
Such is the case with the proposed resolution to repeal the surety bond requirement for the recycling contract.
The city's senior risk manager testified before the council that he is strongly opposes the resolution. He believes a surety bond is critical to protect the interests of the city. Setting aside the surety bond issue, the economics of the contract just don't cut the mustard. In other words, the price bid is a losing proposition unless you have a pot of gold.
The recycling fee of $2.50 per water bill customer is the funding source for this contract. Republic Services previously had the recycling contract. Republic did not bid on a renewal.
Here is a summary of the Residential Recycling Agreement:
a. the contract term is five years;
b. the contractor must collect bi-weekly;
c. all city streets must be driven to empty the blue bins:
d. any missed pick-ups must be resolved in the scheduled pickup day;
e. commercial general liability insurance in the amount of $2.5 million per occurrence, commercial auto liability insurance in the amount of $3 million per occurrence, and worker's compensation and employer's liability insurance in the minimum amount of $1 million, all with the city names as an additional insured;
f. the pickup services for residential house, residences and authorized commercial establishments estimated to be 61,000 customers.
g. a monthly payment of $158,333 to be paid at the end of each month after collection of recycling materials.
The contract was awarded by the Shreveport City Council in Sept. of last year.
At the time of award and even today, Edwards does not own any recycling trucks or have a garage or business facility. Additionally Edwards did not have any CDL drivers lined up.
Pratt Industries at the Port is no longer in the recycling business. Thus Edwards must haul the recycling materials to Kilgore, which will substantially increase fuel and labor costs as well as truck maintenance.
Additionally inflation has increased the expected business costs for this contract, including truck rental or purchase, fuel, tires, etc. And the delivery of vehicle, especially heavy duty trucks, has been delayed by the computer chip shortage.
Several bright minds have studied the contract fee and the contract requirements. All have concluded the economics don't work; this assumes that money will be borrowed for the truck purchase or that the trucks will be rented.
The Shreveport City Council has a fiduciary duty to protect the interests of Shreveport taxpayers. This includes consideration of having a surety bond for this contract.
Going a step further, the Council should consider that it has a fiduciary obligation to city contractors and vendors. In other words, the Council should not approve contracts that will most likely if not inevitably cause economic harm and failure to contractors.
This is especially true of a new minority business contractor such as Edwards. In other words, instead of bending good government principles to award the contract, the Council should exercise prudent judgment to not put a minority contractor in a no win economic situation.
Economics are colorblind and do not change depending on the skin color of a city contractor.
The factual reality of Edwards is more the reason to maintain the requirement of a surety bond.