The city’s move last week to rebid the demolition of the Holly Street Power Plant is another in a long list of setbacks for a site that has long posed an environmental and political burr for city officials. The latest action, relayed in a Jan. 20 memo to City Council from Assistant City Manager Rudy Garza, came a week after council postponed hiring a firm to disassemble the power plant and followed weeks of protests and challenges from other companies questioning staff’s recommendation of a firm whose bid was $6.1 million more than its closest competitor.
While Garza’s memo concedes “there should have been a greater emphasis on the scoring matrix for the total cost of the project,” he says the selection process overall was “fair and equitable.” It’s anticipated that city staff will return to council by May 26 with a stronger proposal that more fully addresses the costs associated with disassembling a power plant in a densely populated neighborhood (see “One More Detour on Holly Street,” Jan. 21). The 50-year-old plant on the north shore of Lady Bird Lake was shuttered in 2007 after decades of opposition from its East Austin neighbors.
Until Jan. 13, when council postponed approving the Holly deal, TRC Environmental Corp. had been in line to get a $24.9 million contract to take down the power plant. But the city quickly distanced itself from TRC and did not officially notify the company of its decision until Monday, four days after Garza’s memo to council. In any case, TRC said it intends to resubmit a bid proposal for the job once the city releases its revised bid requirements. Another competitor, CST Environmental LP, applauded the city’s move to wipe the slate clean and welcomed the opportunity for a second shot at the project. CST was the low bidder, yet drew a last-place ranking from staff; the company subsequently requested a hearing to challenge the rejection and then moved to the courts with a lawsuit, which was dismissed because a decision on the contract was still pending. Dixie Demolition, the city’s second choice, is also expected to throw its hat back in the ring. Like CST, Dixie was denied a protest hearing to challenge staff’s selection of TRC.
This article appears in January 28 • 2011.
