SUBJECT
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Consideration to authorize the City Manager to negotiate and execute contract RFP 2026-032 to bidder AX Recycling Trading, Inc., Laredo, TX in an annual amount not to exceed $400,000.00 and for the total contract value of $2,800,000.00. The term of this contract shall be for a period of five (5) years beginning as of the date of its execution and may be extended for two (2) additional one-year periods, contingent upon appropriated funds and mutual agreement of both parties. They will be operating, maintaining and managing the City-owned Recycling Materials Recovery Facility (MRF) at the Solid Waste Department. Funding is available in the Solid Waste Fund.
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VIVA LAREDO PLAN ALIGNMENT
Alignment Rating: Strong
Supporting goal(s)/policy(ies): Policy 6.4.15
Summary of alignment: Plan for adequate and sustainable solid waste management practices such as city-wide composting, landfill gas harvesting and expanding of recycling capacity.
PREVIOUS COUNCIL ACTION
N/A
BACKGROUND
This contract is established to operate, maintain and manage the City-owned Recycling Materials Recovery Facility (MRF). The objective is to protect the city from operational inefficiencies, align incentives toward maximizing commodity recovery and restore the facility to optimal performance. They shall ensure efficient material recovery, regulatory compliance, high quality bale production and cost control. The City-owned MRF serves residential and commercial recycling programs.
Contract will be for five (5) years with the option to renew for two (2) additional one-year extension, contingent upon appropriated funds and mutual agreement of both parties. This contract shall be the responsibility of and administered by the vendor and the City of Laredo Environmental and Solid Waste Services Department.
COMMITTEE RECOMMENDATION
None
STAFF RECOMMENDATION
recommendation
It is recommended that this contract be awarded.
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Fiscal Impact
Fiscal Year: 2026
Budgeted Y/N?: Yes
Source of Funds: Solid Waste Fund
Account #: 556-2515-533-5501
Change Order: Exceeds 25% Y/N: N/A
FINANCIAL IMPACT:
The contract is based on a revenue-sharing model in which the City does not incur a fixed cost to operate the recycling center. Instead, operations are funded through the sale of commodities generated by the facility. AX Recycling Trading, Inc. generates revenue only when the recycling center operates profitably, after which a revenue sharing structure with the City is applied.