PPT Item # 4 - Balcones Recycling Agreement

Powerpoint Balcones Recycling Agreement

1. PUBLIC WORKS
Presented by:
Frank Orta
Public Works Director
RECYCLING SERVICES AGREEMENTWITH
BALCONES RECYCLING
ITEM # 4
September 23, 2024

2. BACKGROUND
Agreement with Balcones Recycling for recycling services
Accepting collected materials, sorting & processing
New recycling-only facility in SW San AntonioTransition from current vendor Waste Management (WM)
Contract agreement was up for renewal; San Antonio processing
plant relocating to New Braunfels
Estimated cost savings with Balcones
Resident education efforts in Fall 2024

3. BACKGROUND
City has contracted with Waste Management to accept recycling
materials collected by City crews & process materials
Existing contract expired, tipping fees increasing & San Antonio facility
relocating to New Braunfels within 2 yearsBalcones Recycling opened new state-of-the-art facility in 2024 in
SW San Antonio
Recycling-only facility/company
Awarded City of San Antonio recycling contract beginning August 2024
Firm headquartered in Texas since 1994 and has been processing City
of Austin recycling for 10+ years

4. BACKGROUND
Balcones agreement to provide recycling services
Accepting collected materials and sorting &
processing
Contract
term of 5 years, with five, 2-year renewals,
for up to a 15-year term
No changes to the currently accepted materials:
paper, cardboard, plastic bottles, aluminum cans, tin
containers & cans, & glass bottles

5. BACKGROUND
City to partner with
Balcones on residential
recycling awareness &
education efforts in Fall
2024

6. POLICY ANALYSIS
This action is consistent with City policy in negotiating
professional services contracts
This action is consistent with the City’s interest in
having professional recycling and processing services
partnered with the City’s Public Works Department to
meet residential and commercial needs

7. COORDINATION
Balcones Recycling Inc.
City Attorney
City Manager

8. FISCAL IMPACT
Balcones Recycling agreement projected cost based on $90
per ton flat rate, offset by 65% revenue share for
processed materials
Fee to vary based on market performance
If current market performance, fee about $35 per ton
If 8-year average performance, fee about $47 per ton
Projected $56.30 per ton under the previous WM agreement
Funds in amount of $55,000 available in Public Works FY
2024-25 Budget
Overall contract is projected to stay within total budget