ITEM TITLE:
Approval of Contract Amendment #1 with Alaska Scrap & Recycling, LLC in the Amount of $700,000 for the 2026 Scrap Metal Processing Project
SUBMITTED BY: Bart Hinkle, Interim Public Works Director
FISCAL NOTES:
Expenditure Required: $700,000
Unencumbered Balance: $809,301
Funding Source: 350-0600-55000
RECOMMENDATION:
Approve contract amendment #1 with Alaska Scrap & Recycling, LLC in the amount of $700,000 for the 2026 scrap metal processing project
SUMMARY STATEMENT:
In 2025 Alaska Scrap & Recycling, LLC (ASR) processed approximately 2000 tons of scrap metal but was unable to ship out on the fall ammo barge back-haul.
A dedicated barge will arrive in Valdez approximately August 10th and ASR will mobilize to Valdez in July to process the remaining and newly collected scrap metal to fill the barge (assumed additional 1500-2000 tons). All on site junk vehicles will be processed, and baler staff will be trained to be able to process future intakes of junk vehicles.
Following barge load out, ASR will work with Code Enforcement to address nuisance properties to remove scrap metal and junk vehicles to stage for future processing.
The terms of the contract are unit price with a not to exceed amount. Remaining funds will be deployed to address nuisance properties. If additional clean-up work is desired, Staff may seek additional funds from Council.
The results of the 2026 work will begin the process of the next phase and future scrap barge load outs.