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Approval of Contract with Alaska Scrap & Recycling, LLC for Scrap Barge & Recycling Services in the Amount of $750,000
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SUBMITTED BY: Nathan Duval, Assistant City Manager / Capital Facilities Director
FISCAL NOTES:
Expenditure Required: $750,000
Unencumbered Balance: $880,400
Funding Source: 350-0600-55000 - Nuisance Abatement Reserve
RECOMMENDATION:
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Approve of contract with Alaska Scrap & Recycling, LLC for Scrap Barge & Recycling Services in the amount of $750,000
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SUMMARY STATEMENT:
In July 2024 the City solicited proposals for scrap metal removal services. Alaska Scrap and Recycling, LLC (ASR) was selected to provide this service for the City out of the four proposals received. Over the winter ASR worked with staff to understand the need and work through options for scrap removal and recycling. The current plan is to collect scrap metals from around town, aggregate scrap at the landfill at which point ASR will come to town with their equipment and process the metals and generate bales that will ultimately be loaded onto a barge for recycling in the fall of 2025.
Alaska Scrap will procure and train baler staff on a car processing rack that will be used in the future to drain fluids and prep vehicles for crushing and recycling.
The City will pay Alaska Scrap for the tonnage as it is processed. ASR will coordinate resale and schedule the barge and be responsible for barge loadout. Net proceeds from the sale will be split with ASR and the City. Net proceeds to the City will be returned to the program to offset future phases. ASR will work with the City to determine the market value of the scrap and make the most advantageous decision as to when to load out the scrap for resale.
Marketing for the program will begin in May and continue throughout the summer with the goal of voluntary compliance for most scrap metal contributors. Nuisance Abatement will also work with known scrap owners to collect as many recyclable materials...
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