Ag nda
TO:
FROM:
Honorable Mayor and City Council
Water and Power Department
May 8, 2023
SUBJECT: CONTRACT AWARD TO JYD INDUSTRIES INCORPORATED, DBA
AARON INDUSTRIAL RECYCLING TO PURCHASE AND REMOVE
SCRAP METAL FOR A TOTAL ESTIMATED REVENUE OF $1,225,625
FOR THE WATER AND POWER DEPARTMENT
RECOMMENDATION:
It is recommended that the City Council:
1. Find thatthe proposed action is not considered a "project" per Section 21065 of the California Environmental Quality Act ("CEQA") and is therefore not subject to CEQA review pursuant to Sections 15060(c)(2), 15060(c)(3), and 15378 of the CEQA Guidelines; as such, no environmental document pursuant to CEQA is required for the project;
2. Accept the bid dated January 11, 2023, submitted by JYD Industries Incorporated, OBA Aaron Industrial Recycling, in response to the Bid Specifications for Scrap Metals Purchase and Removal for the Water and Power Department ("PWP 11 ), reject
all other bids, and authorize the City Manager to enter into a contract for a total estimated revenue of $1,225,625, which includes a three-year initial contract term and two optional one-year extensions, subject to the approval of the City Manager.
BACKGROUND:
Scrap metals from job sites are regularly delivered to the City Yards. These are discarded into roll-off bins which are labeled by the metal types. Metal types include copper wires, aluminum wires, brass, steel, lead, and ductile iron. PWP warehouse manages the disposal of these materials and as such needs the items to be picked up and recycled.
The PWP warehouse coordinates with a vendor to load, remove and transport metals to a certified weighmaster. This includes labor, materials, equipment, tools and transportation. Proceeds are based on a percentage of the price per pound (or per ton) as quoted for Los Angeles County region in the American Metals Market ("AMM") Index. _,__ For .each load, the vendor is required to pay the City of Pasa~ena the m~re,entage of the MEETING OF ____ 0 5/0B/ 2023 AGENDA ITEM NO. __ J __ _
Authorization to Enter into a Contract with JYD Industries Jnc.
May 8, 2023
price per pound (or per ton) for the specific metal on the day the scrap metal is removed from the warehouse.
On December 15, 2022, the Notice Inviting Bids (2022-IFB-LM-186) for scrap metal purchase and removal was posted online through OpenGov Procurement. On December 22, 2022, the solicitation announcement was published in the Pasadena Press and Pasadena/San Gabriel Valley Journal News. The posting generated notices to all vendors who previously registered with the City for this particular commodity class.
A totar of eight vendors downloaded the specification, none of which were local. There are no known rocal vendors for this type of service. Additionally, a mandatory pre-bid meeting was conducted on January 4, 2023. Three vendors attended the pre-bid meeting, and three bids were received by the due date.
On January 11, 2023, bids were electronically received, opened, and evaluated using the AMM index as of December 1, 2022, along with the metal types and estimated weights shown in Table 1 below. Vendors bid on the amount of proceeds paid to the City of Pasadena for each metal type by indicating their markup percentage, shown in Table 2 below.
T bl 1 E r a e - s ,mate nnua e1g s an n ex as o ec ' dA I W . ht d AMM I d f D 1 2022 Unit of AMM Index as Total AMM Index by
Metal Type Weight Measure , of Dec 1, 2022 Weight
Insulated Aluminum 20.000 Pounds $.40 $ 8,000
Steel 88 Tons $140.00 $ 12,320
Insulated Copper 80,000 Pounds $2.96 $ 236,800
Cast Iron 18 Tons $140.00 $ 2,520
Lead Cable 10,000 Pounds $2.95 $ 29,500
Water Meters - Brass 20,000 Pounds $2.18 $ 43,600
$ 332,740
T bl 2 S a e - crap ea I esu s: M t I B'd R It
TotalAMM Vendor's Share of Bid .Amount/Pasadena's
Vendor Name Proceed Value Proceeds Share of Proceeds
JYD Industries Incorporated DBA,
Aaron Industrial Recycling - $332,740 $87,615 $245,125
CSC Auto Salvage Dismantling
fncorporated $332,740 $162,469 $170,271
Mchael's Metals $332,740 $186,175 . $146,565
Authorization to Enter into a Contract with JYD Industries Inc.
May 8, 2023
JYD Industries Incorporated; OBA Aaron Industrial Recycling was the highest bidder, offering the highest proceeds with the lowest ~ost to the City of Pasadena. The bid was responsive, responsible, and compliant with the requirements of the specification.
Therefore, staff recommends that the City Council award a contract to JYD Industries Incorporated, DBAAaron Industrial Recycling, to purchase and remove scrap metals for the Pasadena Water and Power Warehouse for estimated annual revenue of up to $245,125 for three years with two optional one .. year extensions, subject to the approval of the City Manager.
COUNCIL POLICY CONSIDERATION:
The proposed Material Recovery contract is consistent with the City Council's goal of increasing conservation and sustainability. 1t also supports the United Nations Urban Environmental Accords of 2005 Action 4 of achieving zero waste to landfills and incinerators by 2040. Additionally, it supports Open Space and. Conservation Element of the General PJan by increasing the diversion of waste material~ from landfills through the reduction, reuse, and recycling of wastes to the highest and best use.
ENVIRONMENTAL ANALYSIS:
The action proposed herein is not a project subject to CEQA in accordance with Section 21065 of CEQA and State CEQA Guidelines Sections 15060 ( c)(2), 15060 ( c)(3), and 15378. The authorization of a contract to retrieve and recycle scrap metal from the City Yards within the PWP service territory is an administrative and maintenance activity.
The authorization of the proposed purchase order contract would not commit the City to undertaking or approving any actual or specific physical construction activities or any other actions that involve physical changes to the environment. Therefore! the proposed action is not a "project" subject to CEQA, as defined in Section 21065 of CEQA and Section 15378 of the State CEQA Guidelines. Since the action is not a project subject to CEQA, no environmental document is required.
r
Authorization to Enter into a Contract with JYD Industries Inc.
May 8, 2023
FISCAL IMPACT:
The total estimated revenue for this contract is $1,225,625, including a three-year initial contract term and two optional one-year extensions. Estimated revenues of up to $245,125 will be incurred each fiscal year beginning in FY 2024 and will be addressed in the future annual budget in Power Operating Fund 401 (42400001-701800) and Water Operating Fund 402 (42400002-701800). Indirect and support costs are not anticipated.
arehouse Manager
Approved by:
iv\. -_J) ~
MIG~MAROLJEZ
City Manager
Respectfully submitted,
~-4/~zoz.7
SIDNEY.· SON
General Manager
Water and Power Department