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Commission approves organics processing contracts with Organics by Gosh, Texas Disposal Systems
Summary
The commission approved contracts to process curbside composting materials with two vendors under a three-year agreement (with extension options) not to exceed $10 million; commissioners also approved minutes and named a representative to a joint sustainability commission.
At a meeting of the CWAC commission, commissioners approved contracts to process the city's curbside compost materials with Nursery Enterprises Limited (doing business as Organics by Gosh) and Texas Disposal Systems Landfill Incorporated (doing business as Texas Disposal Systems Incorporated). The contracts have an initial three-year term with up to two additional one-year extension options and a combined not-to-exceed total of $10,000,000.
The contracts, presented by Richard Herrera, operations division manager for Austin Resource Recovery, cover complete processing, sorting and composting of organics including yard waste, food scraps, compostable paper and related materials. Herrera said the contractors will also provide marketing services and detailed data reporting to support the city's residential curbside compost collection service. "We respectfully ask for your approval," Herrera said.
Why it matters: the agreements set the vendor structure and budget limits that will determine where and how curbside organics are processed for the next several years. Austin Resource Recovery staff said $333,333 is currently available in the department's operating budget; funding for the remaining contract term is contingent on future budget appropriations.
Contract details and implementation: Herrera told commissioners the solicitation was structured with a 60/40 split between the two contractors, modeled on the department's recycling contract. Staff estimated annual costs of about $2,000,000 per year, split between the two vendors, and indicated the contract is expected to begin in 2026. The contract language in the packet calls for an initial three-year term with up to two one-year extension options and a combined cap "not to exceed $10,000,000 divided amongst the contractors." Funding beyond the current fiscal year will require appropriation in future budgets.
Commission action and turnout: Amanda moved to approve the contract; Michael seconded the motion. With no further discussion, commissioners voted in favor; the commission chair noted the vote was unanimous with one commissioner off the dais.
Votes at a glance - Approval of minutes (CWAC meeting of May 14): Motion to approve moved by Michael and seconded by Iris; outcome: approved (Melissa recorded an abstention). - Appointment to joint sustainability commission: Motion to appoint Iris as the commission's representative moved by Michael and seconded by Ali; outcome: approved unanimously. - Organics processing contracts (Organics by Gosh; Texas Disposal Systems Inc.): Motion to approve moved by Amanda and seconded by Michael; outcome: approved (unanimous with one commissioner off the dais).
Other agenda items referenced: staff gave a safety-program presentation and presented proposed administrative rule amendments for drop-off facilities, including updated resident verification procedures at Hornsby Bend, a 6-cubic-yard volume limit, and new language to reflect on-demand collection and other operational changes. Staff said the rule amendments will be posted for 30 days of public comment on the Speak Up Austin page (material live on Aug. 15) and that an online information session will be held Aug. 28; staff will review comments and return to the commission for further consideration.
Closing: commissioners moved to adjourn after a brief period of staff presentations and discussion about data requests; staff agreed to provide safety data and follow-up information on root-cause analysis at a future meeting.
