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Committee advances citywide scrap-metal revenue contract using market-share model
Summary
The committee advanced a contract amendment to make a scrap-metal removal and sale arrangement citywide; contractor will return 55% to 85% of market proceeds to the city depending on commodity pricing.
The committee moved to send to formal session a revenue amendment that expands a scrap-metal removal and sale contract citywide. The contractor will remit a percentage of proceeds to the city based on American Metal Market commodity pricing, with the city's share estimated between 55% and 85% depending on the material and market.
Alex Weatherup, assistant director of general services, told the committee this contract does not include a fixed dollar amount; instead, the city provides scrap materials to an intermediary firm, which sells the material and remits a percentage back to the city. "This type of contract does not have a dollar amount associated with it in a traditional sense," Weatherup said. The amendment expands the contract's geographic scope from departmental usage to citywide.
Councilmember Frederick A. Young and others asked clarifying questions about the market-based percentage; Weatherup confirmed the share is tied to market value. The item was advanced to formal session with a recommendation to approve after members heard from contracting staff and the Office of Contracting and Procurement representative Kelly Trammell.
The amendment was described as a revenue contract (no guaranteed minimum) that converts city scrap into resale proceeds, with the contractor keeping an agreed portion and returning the remainder to the city per market pricing at the time of sale.
