Title
Declare Scrap Metals Surplus and Authorize Contract for the Sale of Scrap Metals (B)
Staff recommends award of a contract to Ocala Recycling for the sale of surplus scrap metals.
Explanation
In accordance with GRU's Investment Recovery Guidelines, Utilities Stores staff aggregates scrap metals that are returned to the warehouse in order to recover part of the initial cost of the materials. The scrap metals recovered are separated into categories listed in the "American Metal Market" newspaper. This market publication is used to determine the present value of the scrap metals and the amount the dealer will pay to GRU. The scrap metals are separated into the following eight categories:
Aluminum Wire and Cable
Insulated Copper Wire and Cable
Bare Copper Wire and Cable
Scrap Steel (galvanized and non-galvanized)
Scrap Iron (mixed ductile and cast iron)
Brass and Bronze
Street Lights
Stainless Steel
An Invitation to Bid for the sale of scrap metals was sent to the only two (2) prospective scrap metal dealers in our area with both responding. A tabulation of the evaluation is attached for your information.
Recommendations
The City Commission: 1) declare scrap materials that become available as surplus; and 2) authorize the General Manager, or his designee, to negotiate and execute a three-year contract with Ocala Recycling for the period beginning October 1, 2008 and ending September 30, 2011, subject to the approval of the City Attorney as to form and legality.
Fiscal Note
This contract will allow for recovery of funds for those metals designated as scrap for FY 2009 through FY 2011.
Drafter
Prepared by: Steve Stagliano Administrative Services Director
Submitted by: Robert E. Hunzinger, General Manager