Council approves increase to WCA deal

Council approves increase to WCA deal

Bay City Council approved a 2.26 percent increase to the Waste Corporation of Texas (WCA) contract during Tuesday’s council meeting with council member Bill Cornman voting against the measure.

According to Bay City Finance Director Scotty Jones, that would bring the total adjustment for this year for WCA to a 4.76 percent increase.

“We are real close to our budget target numbers with this increase,” Jones said. “During the budget process, I budgeted for a 4.48 percent increase for WCA.”

Cornman expressed displeasure with this second rate increase for WCA.

“For the record, I think they do a very good job for the city and I think they deserve some consideration here,” Cornman said. “In think the 2.5 percent increase is in their contract and we agreed to do it and that was an inflationary deal. Truth of the matter is that inflation is less than that so they benefited about a half of a percent a year since I’ve been here.

“This CPI calculation is for performance and is totally at our discretion of what we want to give,” Cornman said. “We started this calculation in 2017 and that was not a good year for WCA or was 2018. These numbers stop in April of 2019. The performance was lousy. I think it ought to be 1.6 percent and reward them for the performance that has been good.”

Cornman credited WCA for the job they have done during the past year.

“They are doing a good job for the city right now,” Cornman said. “But in 2017 and 2018, their performance was pretty poor. My recommendation would be for a 1.6 percent increase to be consistent and then get this on a yearly basis and look at it each year and saying yes or no. And that puts us under our budget number.”

Motion for 2.62 percent increase with Cornman voting against the measure.

The current contract with Waste Corporation of Texas (WCA) requires the contractor to attend the June Council meeting of each year to update the City Council on garbage collection issues and present Consumer Price Index (CPI) data explaining the calculation of any fee increase proposed to be effective Nov. 1 of same year.

Per contract, the contractor may add 2.5 percent to the calculated CPI adjustment in Year 2 only of the Extension contact.

On June 27, Bay City Council discussed the performance issues with WCA.

City Council approved 2.5 percent only as stated in contact, but asked that staff return at end of 2019 with a recommendation for the CPI increase.

The financial impact to the City will be based on the CPI calculation plus the 2.5% already provided by contract. Total increase of 4.76% (2.5% + 2.26% CPI) or approximately $85,000.

The City budgeted 4.48% or $80,000.

Council approved a bid for construction roof replacement for the USO Building. Originally, council approved the bid to Ultimate Roofing but due to the work history of this vendor, the city decided to re-bid this project using a different roofing system.

Council approved a bid of $143,756 to Sea Breeze Roofing, Inc.

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