A new scrap metal contract was awarded by the Bedford County Solid Waste Authority after the previous contract had to be voided due to plummeting metal prices.

 

The low bid was from South East Recovery Group at 65 percent of the average of the first and third Friday's price of metal on the New York Stock Exchange, but it will not be awarded until there is a satisfactory inspection of the facility.

 

The authority had a special called meeting recently to discuss the county metal recycling contract, which had been with Middle Tennessee Metal Recovery at the rate of $85 per ton. But the contract with the firm was been suspended as of Nov. 30 after the company fell behind on payments to the county in October and November.

 

The county had been happy earlier in the year with the contract. As metal prices began to drop due to the economic downturn, however, owner Bob Hennings began to experience difficulties.

 

Hennings' business was getting about 47 tons of scrap a month from the county. Hennings told the authority at the meeting he had been receiving about $170 per ton and then after expenses, was getting $45 a ton.

 

But prices dropped in July, August and September, resulting in a substantial loss with Hennings getting only $50 per ton. Hennings once had five employees, now he only has two, he told the authority. The county had accounted for 80 percent of his business, Hennings said.

 

Hennings said he wanted a new contract, perhaps at a percentage of the stock market value, but the authority told him it would have to be an open bid process.

The winner of the bid will pay a percentage of the average of the first and third Friday's price of metal on the New York Stock Exchange. Bid price will include electronic disposal in compliance with the Tennessee Department of Environment and Conservation, (TDEC) and payment will be due on the 10th of each month. The contract will run from Dec. 15, 2008 to Dec. 31, 2009.

 

One member of the authority took issue with the action, saying he would like for the contract to be honored. Bill Lewis said there should be a penalty cause in the contracts and it was not fair for Hennings to get off the hook for defaulting on the contract.

But authority chairman Venson Hawkins said that "times like this are not pleasant" and that metal prices have crashed. Had the authority kept the contract, it would be likely that the county wouldn't get anything, Hawkins said.

 

County mayor Eugene Ray added that it was both the authority and Hennings that agreed to void the contract.

 

Competing bidders also took issue with the selection of Hennings' business, saying that the facility was not equipped to handle the county's large trucks, which led to the inspection stipulation in the contract.

 

In other business, the authority welcomed new member Jean Harris, who replaced the late Fred Harrison. Ray said he was "sure she will be a great asset." (Source: Times Gazette)