Item 003 - Central Business District Collection Services RCA — original pdf

Backup

CITY OF AUSTIN RECOMMENDATION FOR COUNCIL ACTION CONTRACTOR: TEXAS DISPOSAL SYSTEMS, INC D/B/A TEXAS DISPOSAL SYSTEMS COUNCIL DATE: 03/26/2026 SUBJECT: Authorize a contract for Central Business District Collection Services for Austin Resource Recovery (ARR) with Texas Disposal Systems, Inc d/b/a Texas Disposal Systems, for an initial term of 3 years with up to two 1-year extension options in an amount not to exceed $20,000,000. Funding: $2,333,333 is available in the Operating Budget of Austin Resource Recovery. Funding for the remaining contract term is contingent upon available funding in future budgets. LEAD DEPARTMENT: Austin Financial Services CLIENT DEPARTMENT(S): Austin Resource Recovery FISCAL NOTE: Funding in the amount of $2,333,333 is available in the Fiscal Year 2025-2026 Operating Budget of Austin Resource Recovery. Funding for the remaining contract term is contingent upon available funding in future budgets. PURCHASING: Austin Financial Services issued an Invitation for Bids solicitation IFB 1500 RGW1030 for these services. The solicitation was published on October 13, 2025, and closed on December 02, 2025. Of the two offers received, the bid submitted by the recommended contractor was the lowest responsive bid received. A complete solicitation package, including a tabulation of the bids received, is available for viewing on the City’s website. This information can currently be found at https://financeonline.austintexas.gov/afo/account_services/solicitation/solicitation_details.cfm?sid=142394 MBE/WBE: This solicitation was reviewed for subcontracting opportunities in accordance with City Code Chapter 2-9B (Minority-Owned and Women-Owned Business Enterprise Procurement Program). For the services required for this solicitation, there were insufficient subcontracting opportunities and an insufficient number of certified M/WBEs; therefore, no subcontracting goals were established. PRIOR COUNCIL ACTION: FOR MORE INFORMATION CONTACT: Direct questions regarding this Recommendation for Council Action to Austin Financial Services – Central Procurement at: FSDCentralProcurementRCAs@austintexas.gov or 512-974-2500. Respondents to the solicitation and their Agents should direct all questions to the Authorized Contact Person identified in the solicitation. BOARD AND COMMISSION ACTION: February 11, 2026 - To be reviewed by the Zero Waste Advisory Commission ADDITIONAL BACKUP INFORMATION (RCA BODY) The Austin City Council, under City Code section 15-16-4, requires that the City shall contract with a private collection company to provide solid waste services for the downtown contract service area. The contract will provide services which include daily collection, transporting, processing, and disposal of trash, recycling, compost, and daily litter cleanups within the Downtown Central Business District ("CBD") of Austin, Texas. This recommendation is in accordance with Local Government Code 271.905 and Resolution Number 20140807-113 to invoke local preference. This local bidder is offering the best combination of contract price and additional economic development opportunities for the City created by the contract award, including the employment of residents and increased tax revenues. The contract will replace an existing contract that will expire on April 14, 2026. Requested authorization is based on departmental estimates, historical spend and forecasted usage. The recommended contractor is the current provider for these services. If the City is unable to secure a contract, ARR will experience severe disruptions, delays or suspensions of mandated collection services and cause an unnecessary risk to public health and safety within the City of Austin. Contract Details: Contract Term Length of Term Contract Authorization Revised 4/2025 1 CITY OF AUSTIN RECOMMENDATION FOR COUNCIL ACTION CONTRACTOR: TEXAS DISPOSAL SYSTEMS, INC D/B/A TEXAS DISPOSAL SYSTEMS Initial Term Optional Extension 1 Optional Extension 2 Total $12,000,000 $4,000,000 $4,000,000 $20,000,000 3 years 1 year 1 year 5 years COUNCIL DATE: 03/26/2026 Note: Contract Authorization amounts are based on the City’s estimated annual usage. Revised 4/2025 2 CENTRAL BUSINESS DISTRICT COLLECTION SERVICES SOLICITATION (IFB 1500 RGW1030) ZWAC: 02/11/2026 Council: 03/26/2026 OVERVIEW 1. Requested Contract Term, Authorization, and Current Budget Length of contract and total authorization: Contract has an initial term of three years with two renewal options for one-year each for a total of five years and a contract not-to-exceed amount of $20,000,000. ARR current fiscal year budget: Funding in the amount of $2,333,333 is available in the Fiscal Year 2025-2026 Operating Budget of Austin Resource Recovery. Funding for the remaining contract term is contingent upon available funding in future budgets. 2. Solicitation Information Solicitation No: IFB 1500 RGW1030 # of bids received: 2 # of non-responsive bids received: 0 Length of time solicitation was out on the street: 3 weeks Was the time extended? No Issued date: 10/13/2025 Closed date: 11/04/2025 Major Scope Change(s): The addition of compost services 3. Previous Contract Information Previous contract: Yes Contract number: MA 1500 NA200000153 Contract length and authorization: three years with two, 12-month extension options, authorization $8,300,000.00 Contract actual spend: $6,505,341.28 Current status: Active, new contract needed due to current contract expiring Contract execution date: 06/19/2020 Contract expiration date: 04/14/2026 4. Notes/Other The Aus(cid:415)n City Council, under City Code sec(cid:415)on 15-16-4, requires that the City shall contract with a private collec(cid:415)on company to provide solid waste services for the downtown contracted service area. The contract will provide services which include daily collec(cid:415)on, transpor(cid:415)ng, processing, and disposal of trash, recycling, compost, and daily li(cid:425)er cleanups within the Downtown Central Business District of Aus(cid:415)n, Texas. This recommendation is in accordance with Local Government Code 271.905 and Resolution Number 20140807-113 to invoke local preference. This local bidder is offering the best combination of contract price and additional economic development opportunities for the City created by the contract award, including the employment of residents and increased tax revenues. The contract will replace an exis(cid:415)ng contract that will expire on April 14, 2026. Requested authoriza(cid:415)on is based on departmental es(cid:415)mates, historical spend, and forecasted usage. The recommended contractor is the current provider for these services. If the City is unable to secure a contract, ARR will experience severe disrup(cid:415)ons, delays or suspensions of mandated collec(cid:415)on services and cause an unnecessary risk to public health and safety within the City of Aus(cid:415)n. REVIEWED AND APPROVED FOR ZWAC Name Date Reviewed By: Victoria Rieger End-user/Contract Manager: Samuel Gilbert February 3, 2026 February 3, 2026