Austin double-pays for recycling

Austin double-pays for recycling

By Editorial Staff, Resource Recycling

Austin, Texas pays two firms to handle the city's recycling. However, one of them is being paid significantly more to process less material.

According to a report in the Austin-American Statesman, in the first two months of two 20-year deals, the city paid Balcones Resources $83,548 to process 5,387 tons of recyclables, while paying Texas Disposal Systems (TDS) $135,733 to process 3,669 tons of recyclables. This pencils out to TDS getting twice the amount per ton as Balcones.

The paper reports that the rates were worked out in 2011, when the city was looking to split the recycling work between plants operated by the two companies. Balcones owns a recycling plant in Northeast Austin, while TDS has a facility south of the city.

According to the paper, the city wanted to split the work geographically to reduce fuel and other transportation costs. The paper reports that the city had no numbers on how much it was saving by sending recyclables to different locations at press time.

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