Bay City Tribune

A municipal garbage-collection system is among the options that city council will consider as it looks to replace Allied Trash as the citys contractor in the next few months.

Council began discussing the possibilities at a special called meeting Monday afternoon to approve an employee benefit trust as part of the citys new health-insurance contract with Aetna effective Wednesday, Oct. 1.

While the refuse-collection contract with Allied Trash runs through the end of 2009, the city is in a position to consider alternatives before then, Mayor Richard Knapik and City Attorney J.L. Ziegenhals agreed Monday.

Both indicated that if the city found a new contractor, Allied wouldnt hold the city to the existing pact nor would it renew it because it was getting more expensive for the company to dispose of its refuse.

Allied recently lost its contract with El Campo to Alvin-based, waste-collection service IESI and, with it, its garbage truck-staging area for operations in Wharton and Matagorda counties.

Since then, Allied found local property it could lease to place its trucks, but was awaiting council to decide if it would continue the contract.

When council learned that IESI was taking over in El Campo a few weeks ago, there was some thought that council could have that firm take over trash collecting here.

But Knapik told council members Monday night that after talking with IESI, he learned that a transition wouldnt be so smooth for Bay City, including a possible rate hike of about $3, no fee breaks for senior citizens and the expense of new software for a new collection contractor.

Were going to pull the trigger on the lease, Knapik said. That means Allied will lease the site and continue to collect Bay City refuse until council decides on a new waste disposal contract.

The mayor said city staff will do due diligence on options that include putting waste-collection operations into a city department, as well as consider another private disposal service.

I think council is relieved not to jump into another contract, council member Joe Enoch said.

This should be a collective effort, agreed council member Clarence Fenner one where several officials and agencies develop strategy to hear all variables.

Knapik was clear that the citys ties with Allied are short-term. I dont want this to drag on. I dont want the phone calls.

He told council Monday night that another Allied truck broke down on the north side of Bay City assuring more delays in trash collections.

Its important to make a good decision, the mayor added.

With a new health insurance carrier, the citys insurance consultant, Sugar Land-based City-County Benefit Services (C-CBS), recommended council set up an employee benefits trust to administer the program, as opposed to the group plan the city was under with Cigna.

The trust arrangement would save the city about 1.79 percent in program costs, said Burke Sunday, a life and health insurance councelor with C-CBS.

The trust system, with council members designated as trustees, is set up so the citys health insurance contract will be administered and monitored the same as all other municipal operations.