Title
Declare Scrap Metals Surplus and Authorize Contract for the Sale of Scrap Metals (B)
Staff recommends award of a contract to Trademark Metals Recycling, LLC 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 Contractor is required to provide roll-off containers and transportation of the containers to and from GRU as needed for each metal category. The amount payable to GRU is based upon indices published by the American Metal Market (AMM), London Metal Exchange (LME) or Commodity Exchange (COMEX), depending upon the particular type of metal. The scrap metals recovered are separated into six categories as follows:
Scrap Steel (galvanized and non-galvanized (AMM)
Street Lights (AMM)
Scrap Iron (mixed ductile and cast iron) (AMM)
Aluminum Wire and Cable (LME)
Bare Copper Wire and Cable (COMEX)
Insulated Copper Wire and Cable (COMEX)
The amount of funds recovered each year varies based on the actual amount of scrap returned to the warehouse and over the last two years the average amount received annually was $100,000.
An Invitation to Bid for the sale of scrap metals was sent to twenty-one prospective scrap metal dealers, with two companies responding. A tabulation of the evaluation is attached for your information.
Fiscal Note
This contract will allow for recovery of funds for those metals designated as scrap for FY 2014 through FY 2016.
Recommendation:
The City Commission: 1) declare scrap metals that become available as surplus; and 2) authorize the General Manager, or his designee, to negotiate and execute a three-year contract with Trademark Metals Recycling, LLC for the sale of surplus metals beginning October 1, 2013, subject to the approval of the City Attorney as to form and legality.