Could Slidell extend one garbage collection and disposal contract to 25 years?

Plain-English summary

In 2013, the Louisiana Attorney General told Slidell that its combined garbage contract could not simply be extended to 25 years for every service. The statutory ceiling was ten years for collection and transportation, and 25 years for disposal. Putting those services into one agreement did not erase the different limits.

The AG also said the City had to count the existing contract term when calculating an extension. Its example was a ten-year disposal agreement that could be extended for only fifteen more years. The answer addressed contract length under the law at the time; it did not decide whether any particular extension was otherwise valid.

Currency note

This opinion was issued in 2013. 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 a single contract covering collection and disposal qualify for a 25-year term?

No. The AG applied separate statutory limits to the services within the same agreement: ten years for collection and transportation, 25 years for disposal.

Did an extension start a new 25-year clock?

No. The AG said the existing contract term had to be included in the total. In its example, a disposal contract already set for ten years could add only fifteen years.

Did the opinion resolve whether the contract needed public bidding?

It mentioned the office's prior view that garbage contracts not structured as exclusive franchises could generally be negotiated, subject to statutory term limits. Its answer to Slidell focused on how long the collection, transportation, and disposal portions could run.

Background and statutory framework

Slidell asked about extending an existing residential solid-waste contract awarded after a request for proposals. The AG read the separate time limits in La. R.S. 33:4169.1 (A)(3) according to their terms, invoking La. C.C. art. 9 on clear statutory language. It quoted an earlier AG opinion applying the separate limits and describing that opinion's contract as "in the nature of a disposal contract."

Citations

• La. R.S. 33:4169.1 (A)(3) (separate contract-term limits).
• La. C.C. art. 9 (application of clear statutory text).

Source

• Landing page: https://www.ag.state.la.us/Opinions
• Original PDF: https://www.ag.state.la.us/Opinion/Download/13-0184

Original opinion text

~tat.e .of IIIouisiana
DEPARTMENT OF JUSTICE
P.O. BOX 94005
BATON ROUGE
70804-9005
JAMES D. "BUDDY" CALDWELL
ATTORNEY GENERAL

NOV 2 5 2013
OPINION 13-0184

90-A-1 PUBLIC FUNDS & CONTRACTS
Mr. Bryan D. Haggerty
La. R.S. 33:4169.1
Office of the Slidell City Attorney
Pursuant to La. R.S. 33:4169.1 (A)(3), the City may only
Post Office Box 828
extend to a total twenty-five year term the portion of the
contract which governs services for disposal of garbage or
Slidell, Louisiana 70459-0828
trash. Services relating to collecting and transportation of
garbage or trash are limited to a ten year maximum contract term. The term of the current contract must be included with the contract extension term when calculating the total contract
Dear Mr. Haggerty: term.

You have requested an opinion of this office regarding whether the City of Slidell ("City") can extend an existing contract for the collection, transportation and disposal of garbage to a total term of twenty-five years.

The current contract was awarded after the City issued a request for proposals. The scope of the services "covered by this contract are for the collection. transportation and disposal of residential solid waste, including green waste, and separated recyclable materials for residential units, in the corporate limits of the City." The contract further provides that "[t]he Contractor shall be the sole and exclusive agent to provide residential solid waste collection and disposal and recycling services as set forth herein for and on behalf of the City. This agreement shall not constitute a franchise or exclusive right to collect from commercial units within the City."

Your request specifically mentions La. Atty. Gen. Op. No. 03-0374, which stated, t'The contract you describe appears to be in the nature of collection, transportation and . disposal of garbage which would be limited to a 25 year term." Your request states that it is unclear whether a contract for the collection, transportation and disposal of garbage could have a twenty-five year contract term.

La. R.S. 33:4169.1 (A) grants the governing authority of every parish or municipality the following powers with regard to the collection and disposal of garbage and trash:

(1) To engage in the collection and disposal of garbage and trash within its jurisdiction in cooperation with, or to the exclusion of, other garbage and trash collectors.

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Bryan D. Haggerty
Opinion 13-0184
Page -2­

(2) To grant permits, licenses, exclusive or nonexclusive franchises, or any combination thereof to garbage and trash collectors and disposers.
Any exclusive franchise shall be granted only after advertising for bids, reception of bids, and awarding of the contract or contracts in accordance with the public bid laws of the state and other provisions of law.

(3) To enter into time contracts for the collection and transportation of garbage or trash for a term of up to ten years, and for disposal of garbage or trash for a term of up to twenty-five years. 1

Paragraph (A)(3) of the above cited statute sets forth two different time limits for contracts entered into under the authority of this statute: ten year terms for contracts for the collection and transportation of garbage or trash and up to twenty-five year terms for contracts for the disposal of garbage or trash. In our view, the legislature has chosen to distinguish between these types of contracts by listing them separately and by providing a different maximum time limit for each type of contract. We find the plain language of this statue to be clear and unambiguous. When a law is clear and unambiguous and its application does not lead to absurd consequences, the law shall be applied as written and no further interpretation may be made in search of the intent of the legislature. La. C.C. art. 9.

La. Atty. Gen. Gp. No. 96-130 addressed whether the Iberia Parish Council could negotiate an operating contact for solid waste collection and disposal and whether such a contract could be extended to a twenty year term. With regard to the length of the contract, the opinion provided:

As set forth in R.S. 33:4169.1A(3) contracts for the collection and transportation of garbage and trash may not exceed 10 years in term, while contracts for the disposal of garbage and trash may be for up to twenty-five years in term. The contract which you describe appears to be in the nature of a disposal contract which would be limited to a 25 year term.

As you can see, even if collection, transportation, and disposal of garbage are all services covered under the same contract, the plain language of La. R.S. 33:4169.1 still sets forth different maximum terms for contracts for the collecting and transportation of

1 We point out that our office has interpreted or otherwise referenced La. R.S. 33:4169.1 on a number of prior occasions. See generally La. Atty. Gen. Op. Nos. 11-0059, 09-0087, 03-0374, 97-239, 97-205 and 96-130. In general terms, it has consistently been our opinion that unless such garbage contracts are structured as exclusive franchises, they may be awarded by negotiation rather than by a public bid process, subject to the limits on the maximum term of such contracts as set forth in La. Rev. Stat. 33:4169.1.

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Bryan D. Haggerty
Opinion 13-0184
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garbage or trash (10 year maximum term) and for disposal of garbage or trash (25 year maximum term).

Therefore, it is our opinion that pursuant to La. R.S. 33:4169.1 (A)(3), the City may only extend to a total twenty-five year term the portion of the contract which governs services for disposal of garbage or trash. Services relating to collecting and transportation of garbage or trash are limited to a ten year maximum contract term. Please note that the term of the current contract that you wish to extend must be included when calculating the total length of the contract. In other words, if the current contract for garbage or trash disposal is for a ten year term, the contract can only be extended ~nother fifteen years, thereby resulting in a total contract term of twenty-five years.

We trust this adequately responds to your request. However, if our office can be of further assistance, please do not hesitate to contact us.

Yours very truly,

JAMES D. "BUDDY" CALDWELL
Attorney General

By: ~U~-h-
Lindsey K. HUflter
Assistant Attorney General
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