Subject:
Title
Site License Agreement with Reworld Metals LLC for ferrous metals cleaning operation at the Solid Waste campus.
label
Recommended Action:
Recommended Action
Approval and execution by the County Administrator of the Site License Agreement with Reworld Metals LLC (Reworld) for ferrous metals cleaning operation at the Solid Waste campus.
• Approval provides Reworld a location on the Solid Campus to operate a ferrous metals cleaning process.
• The Contractor shall pay the Solid Waste Department a Host Fee of $3.75 per ton processed through the operation or a minimum annual payment of $200,000.00, whichever is greater. This is a reduction of approximately $2.00 per ton based on the reduction of cost previously incurred for hauling of recovered metals and resultant ash.
• Reworld has been operating this on-site process since June 2022. In 2023, approximately 55,000 tons were processed.
• The contractual vehicle for Reworld to process on-site was part of the Waste-To-Energy (WTE) facility operator service agreement, which expires December 31, 2024. The Board approved a one-year extension for Reworld to operate the WTE facility while a new operator procurement can be completed.
• The one year Reworld extension for the WTE requires we have a standalone ferrous metals processing operation site license agreement.
• The initial term of the agreement is five years from January 1, 2025.
• Revenue generated under this agreement will be receipted to the Solid Waste Revenue and Operating Fund. Revenue from Scrap Sales is budgeted in the Fiscal Year 2025 Adopted Budget in the Fund Revenues Cost Center, and Scrap Sales - Solid Waste Account, in the amount of $860,850.00.
Strategic Plan:
Practice Superior Environmental Stewardship
3.4 Reduce/reuse/recycle resources including energy, water, and solid waste
Summary:
Site License Agreement approval provides Reworld to operate a ferrous metals cleaning process on-site. The operation supports several regional WTE facilities but offers a specific benefit to the Pinellas facility. The Pinellas facility is the largest in the region and generates the most ash from the incineration process. Ferrous metals recovered from the ash are transported to the on-site cleaning operation where residual ash is removed from the ferrous metals. This cleaning process significantly increases the market value of the recovered metals. Additionally, the cost to transport metals from the WTE facility to the on-site process is very low when compared to metals being transported elsewhere in the region.
Before June 2022, Reworld operated the cleaning process at the Pasco County WTE facility site. Pinellas was paying a premium to transport metals to Pasco and for the residual ash to be returned to Pinellas. With the operation on-site, transportation costs are reduced, as are the costs to recover metals and sell on the market.
Background Information:
The purpose of the Recovery Operation is to remove Ash from separated ferrous metals to improve ferrous metal quality. To ensure regulatory compliance with the residue limitations, Reworld has implemented a ferrous metals cleaning process to remove residue and non-recyclable materials from the recovered ferrous metals.
The perimeter of the Recovery Operation is delineated with concrete blocks approximately two-foot square by six feet long and stacked three high. Material bunkers are also constructed of the same type of block also stacked three high. The final cleaned ferrous metals will be combined and stored in a separate bunker for load out to the ferrous metals market.
The final separated ferrous metal bunker uses a thick steel plate as a bunker liner or bottom. This plate prevents re-entrainment of Ash into the clean ferrous metals when being scooped by the front-end loader while loading the transfer vehicle for hauling to the ferrous metals scrap market.
The incoming metals are weighed by the County's certified scales as part of the tracking system for calculating the net metals from each source including the weighing of the outgoing Ash. All "clean" ferrous metals leaving the site are weighed by the County's scales as part of reconciling monthly tonnages. The net clean metals from each source are calculated as follows:
Incoming Recovered Metals - Associated Separated Residue = Net recovered metals
Fiscal Impact:
Annual revenue from the Site License Agreement is estimated to be approximately $210,000, but a minimum $200,000 Host Fee is required to be paid by the Contractor so long as the procession equipment is in use and recovered metals are being delivered. This is based upon two previous years of processed tonnage data and a new host fee rate of $3.75 per ton.
Revenue generated under this agreement will be receipted to the Solid Waste Revenue and Operating Fund. Revenue from Scrap Sales is budgeted in the FY25 Adopted Budget in the Fund Revenues Cost Center, and Scrap Sales - Solid Waste Account, in the amount of $860,850.00. Scrap metals are collected outside of the Waste-to-Energy Facility and sold to other vendors, accounting for the additional revenues budgeted outside of this agreement.
Delegated Authority:
Authority for the County Administrator to sign this Site License Agreement is granted under Code Section 2-62 (a)(5).
Staff Member Responsible:
Paul Sacco, Director, Solid Waste
Partners:
N/A
Attachments:
Site License Agreement
Solid Waste Campus map delineating the Metals Cleaning Operation