Alabama Attorney General Opinion 1979-0154

! . CHARLES A. A. GRADDICMd ATTORNEY GENERAL STATE OF ALABAMA AUG 22 09 ADMIN. IVE EUILOING GA NORTH UNION STREET MONTGOMERY. ALABAMA 36130 AREA 12051.636-5,50 OFFICE OF THE ATTORNEY GENERAL ;Na; 're 00 '54 LEE L. HALE DEPUTY ATTORNEY GENERAL WILLIAM M. BEKURS. JR . EXECUTIVE ASSISTANT WALTER S. TURNER CHIEF ASSISTANT ATTORNEY GENERAL JANIE NOBLES AOMINISTRATIVE ASSISTANT Honorable G. William Noble Mayor City of Gardendale P. 0. Box 38 Gardendale, Alabama 35071 Bid Law - MUnicipalities - Energy Crisis Absent an escalation clause there is no authority for an increase in the contract price of a garbage collection service due to the current energy\crisis. Dear Sir: In a recent letter addressed to this office, you requested an opinion regarding the applicability of the Alabama Competitive Bid Law which is contained in Code of Alabama 1975, Section 41-16-50 through Section 41-16-63. Your request reads, in pertinent part, as follows: "The City of Gardendale entered into a contract with a private garbage collector through the competitive bid procedure . . . The private collector, however, is experiencing extreme difficulties due to the tremendous unexpected increase in gasoline prices . . In view of this would you please render an opinion to me to the following question: May the city increase the payment to the private collector without inviting or soliciting new bids through the competitive bid procedure? . I know of no legal authority for a municipality to increase the payments under a contract let pursuant to competitive bids. If the garbage collector who now has the garbage collection contract with the City of Gardendale defaults on that contract, then the contract mist be re-let pursuant to the competitive bid law. It is my suggestion that any new contract II Honorable G. William Noble - 2 Gardendale, Alabamm, for garbage collection services contain an escalation clause tied to the price of gasoline. For your convenience, I have attached a copy of an opinion which discusses escalation clauses which was addressed to the Honorable Bettye Frink, State Auditor, dated April 26, 1979. If I may be of any further assistance to you regarding this matter, please do not hesitate to contact me. Very truly yours, CHARLES A. GRADDICK Attorney General By - 412-64_ -1 044-4-Cr\_) PATRICK L. ROBINSON Assistant Attorney General PLR/dc Attachment