Loading...
HomeMy WebLinkAboutItem 04 Approval to Enter into a Contract with Forest Environmental Solutions, LLC to Oversee, Manage, and Broker the Harvest and Sale of Select Timber on the Crown Point Propertyt l ocoee florid. AGENDA ITEM COVER SHEET Meeting Date: October 6, 2020 Item #: 0 Contact Name: Craig Shadrix, Assistant City Manager Contact Number: Ext. 1018 Reviewed By: Department Director: City Manager: Robert Subject: Authorization to enter into a contract with Forest Environmental Solutions, LLC to oversee, manage, and broker the harvest and sale of select timber on the Crown Point Property. Commission District 1. Larry Brinson. Sr. Background Summary: Back in December of 2012, Forest Environmental Solutions, LLC, facilitated a thinning of timber on City land within the Crown Point property on around 116 acres. In June of 2020, City Staff asked professional forester Joe Gocsik of Forest Environmental Solutions, LLC to conducted a brief review of these same lands still under City ownership for their viability for a follow upharvest. In June of 2020, professional forester Joe Gocsik of Forest Environmental Solutions, LLC conducted a brief review of these lands at the staff's request and recommended 62 acres for their viability for harvesting (see attached map). Staff is bringing forward a contract as was done in 2012, to have the timber harvested, and due to the active hurricane season, requesting to bypass the City's purchasing procedures due to timing. The proposed contract provides that Forest Environmental Solutions, LLC will manage and supervise the identification, harvest, and sales of timber from these properties at the direction of the City Commission. The contract provides that Forest Environmental Solutions will be compensated 10% of the gross revenue generated by the timber harvest. Staff is seeking direction from the City Commission on the level of harvest desired based on aesthetics of the area; for example, select harvesting would leave some canopy of trees while thinning out the area versus clear cut harvesting which would remove all viable timber. Both methods result in reduction of fuel loads that provide some wildfire mitigation value. The estimated commission for the contractor is well below the $25,000 limit approvable by the City Manager and cannot be determined ahead of time due to the dynamic nature of the market and the direction chosen by the City Commission on what type of harvest will be undertaken. Issue: Should the City Commission authorize execution of a contract with Forest Environmental Solutions, LLC to oversee. manage, and broker the harvest and sale of select timber on select City -owned properties? Recommendations: Staff recommends that the City Commission authorize the execution of the attached contract with Forest Environmental Solutions, LLC with a motion that waives the City's purchasing procedures. Attachments: Timber Map of Selected Properties Contract Timber Sales Assistance Agreement Financial Impact: The contract will generate revenue from which the commission will be paid to the contractor and is anticipated to be in excess of $17,000. Type of Item: (please mark with an 'Y) ❑ Public Hearing For Clerk's Dept Use: ❑ Ordinance First Reading ❑ Consent Agenda ❑ Ordinance Second Reading ❑ Public Hearing ❑ Resolution ❑ Regular Agenda ® Commission Approval ❑ Discussion & Direction ❑ Original Document/Contract Attached for Execution by City Clerk ❑ Original Document/Contract Held by Department for Execution Reviewed by City Attorney Reviewed by Finance Dept. Reviewed by 2 CITY OF OCOEE LATITUDE: 28°363.44"N SECTIONS 1 & 12, TOWNSHIP 22 SOUTH, PROPOSED TIMBER SALE MAP LONGITUDE: 8103338.249"W RANGE 27 EAST, SECTIONS 6 & 7, APPROXIMATELY 62 ACRES TOWNSHIP 22 SOUTH, RANGE 28 EAST, AUGUST 20, 2020 ORANGE COUNTY, FLORIDA DISCWME": FOREST ENVIRONMENTAL SOLUTIONS, LLC N THIS MAP IS NOT FU SURVEY. P.O. BOX 145 ANT DERIVEDAC REALE NUMBERACCOMPANYING ON THIS MN 09RACCOMHOULDG REPORT DARE CITY, FL 33526-0145 ARE APP 0.0%IMATEAND SHOULD ONLY BE PHONE: 352-206-8776 W E USED FOR PLANNING AND MANAGEMENT PURPOSES. EMAIL:JOE@FESFL.COM THIS MAPIS NOT SUITABLE FOR ENGINEERING DESIGN OR CONSTRUCTION. ANTUSF OF ASSOCIATED ACREAGE NUMBERS FOR SALES OR NEGOTIATIONS IS ENTIRELY AT 5 RISE OF SAID PERSONS) UTILIZING THE NUMBERS AS SU LEGEND CITY OF OCOEE TIMBER SALE AREA 600 300 600 Feet Forest Environmental Solutions, LLC: File # FES -20-088 TIMBER SALE CONTRACT Pay -As -Cut THIS INDENTURE, made and entered into in triplicate by and between City of Ocoee, C/o Mr. Craig Shadrix, whose Federal Tax Identification number is , and whose address is 150 N. Lakeshore Drive, Ocoee, Florida 34761-2223 party of the first part hereinafter referred to as "OWNER", and Flatwoods Forest Products, Inc. whose address is 240 West Highway 44, Leesburg, FL 34748, party of the second part hereinafter referred to as "PURCHASER". WITNESSETH: That subject to the terms, conditions and limitations hereinafter set forth, OWNER, in consideration of the sum of Ten Dollars ($10.00), and other valuable considerations this day in hand paid by PURCHASER, the receipt of which is hereby acknowledged, and in consideration of the further sums herein agreed to be paid, does by these presents grant, bargain, sell and convey to PURCHASER the exclusive license and right to cut, haul, and remove (also referred to as harvest or harvesting) such merchantable trees (also referred to collectively as timber) as described herein now growing and hereafter to grow during the term hereof upon the following described land in Orange County, Florida, to wit: Approximately 60.2 acres of land located within Sections 6 & 7, Township 22 South, Range 28 East, Orange County, Florida. This contract is for the parcels identified by the Orange County Property Appraiser's Office with the following Parcel Identification Numbers: 06-22-28-0000-00-004:6.81 acres 06-22-28-0000-00-005: 13.51 acres 06-22-28-0000-00-055: 6.98 acres 06-22-28-0000-00-056:17.96 acres 06-22-28-0000-00-082:2.67 acres 07-22-28-0000-00-003:12.30 acres Upon the following terms and conditions: 1. OWNER'S FORESTER: Forest Environmental Solutions, LLC, is hereby designated as OWNER'S FORESTER and is designated as OWNER'S representative for purposes of enforcement of the provisions of this Contract regarding harvest operations and settlement. PURCHASER agrees to recognize Forest Environmental Solutions, LLC as OWNER'S FORESTER and to cooperate fully with Forest Environmental Solutions, LLC in complying with the terms and provisions of this Contract. PURCHASER shall report the commencement, any interruption, recommencement, or completion of harvesting operations by telephone to the OWNER'S FORESTER at least twenty four (24) hours prior to such. 2. SPECIE OF TIMBER: All unmarked and otherwise designated timber Page 1 3. TERM: The term of this Timber Cutting Contract shall be six (6) months from the date hereof subject to a six month extension due to weather circumstances. DEFINITIONS: a) All timber shall be measured in tons (one ton equals 2,000 pounds). b) PURCHASER shall harvest and fully utilize where practical all trees conveyed in the Contract and which meet the following specifications: Pine Topwood any non tree -length wood generated through the harvesting and merchandising of higher timber products Pine Pulpwood/Mulchwood any merchantable pine trees with a minimum length of 16 feet to a 3 -inch top diameter inside bark (DIB) which are not suitable for any other products. Pine Barn Poles Any merchantable pine tree of suitable quality with minimum measurements of 32.0 feet in clear defect free to -len h to a 5 -inch DIB top and a 10" DBH. Pine Sawtimber any merchantable pine trees of suitable quality with minimum measurements of a 12.0 -inch DBH and 32 feet in length to an 8.0 -inch DIB top. 5. PRICE: For all such trees suitable for cutting the price shall be as follows: Pine Topwood $ 2.00 per ton Pine Pulpwood/Mulchwood $ 8.00 per ton Pine Sawtimber $12.00 per ton Pine Barn Poles $25.00 per ton 6. PAYMENT: PURCHASER shall, on a weekly basis, account for all timber harvested by the close of business of the second week following that week's harvest. PURCHASER shall produce a weekly production payment and summary, with copies of all scale tickets attached with their corresponding load tickets, and the same shall be mailed to the OWNER'S FORESTER at its address set forth below. Forest Environmental Solutions, LLC P.O. Box 145 Dade City, FL 33526-0145 7. LOAD TICKETS: OWNER'S FORESTER shall provided pre -numbered and consecutively numbered load tickets which shall be used by PURCHASER, to provide security for the timber harvested under the terms of this Contract. Load tickets will consist of three parts. PURCHASER shall use load tickets for each and every load of timber harvested under the terms of this Contract following the instructions set forth below concerning the use of each part of the load ticket: Page 2 SCALE TICKET COPY PURCHASER shall complete requested information on (Pink Copy) SCALE TICKET COPY and attach to scale ticket at the mill when the timber is weighed. This part shall be returned to OWNER'S FORESTER, attached to the scale ticket, along with weekly summary and payment for timber in accordance with Section 6. LOAD COPY PURCHASER shall attach LOAD COPY to loaded timber (Green Copy) before the timber is removed from OWNER'S property. This part shall be attached to timber on the driver's side near the front of the trailer in such a manner as to be readily visible for inspection. OWNER'S COPY PURCHASER shall complete requested information on (White Copy) OWNER'S COPY and deposit it in a lock box, mail box, or other receptacle which shall be designated and provided by OWNER'S FORESTER. PURCHASER'S COPY PURCHASER shall keep PURCHASER'S COPY for his own (Yellow Copy) records. If PURCHASER fails to produce a scale ticket, load ticket, and correct payment corresponding to each and every load ticket, and ifPURCHASER cannot otherwise remedy such discrepancies to the satisfaction of OWNER'S FORESTER within ten (10) working days from the notification of such discrepancy by OWNER'S FORESTER to PURCHASER, PURCHASER shall pay to OWNER the greater of One Thousand Dollars ($1,000.00) or the estimated value of the load, as determined by OWNER'S FORESTER, for each missing ticket. PURCHASER shall return to OWNER'S FORESTER all unused load tickets at the completion of the sale. 8. DAMAGE DEPOSIT: Upon execution of this Contract, PURCHASER shall deposit One Thousand Dollars ($1,000) with OWNER'S FORESTER, which amount shall'be held by OWNER'S FORESTER as a damage and performance deposit to assure fulfillment by PURCHASER of PURCHASER'S obligations hereunder. The deposit check shall be made payable to "Forest Environmental Solutions, LLC." In the event, PURCHASER fails to comply with any of the terms of this Contract, OWNER'S FORESTER shall release to OWNER from such escrow funds the amounts necessary to reimburse OWNER for its actual loss or damage on account of such failure by PURCHASER. In the event, OWNER'S actual loss or damage exceeds the balance of such funds, PURCHASER agrees to reimburse OWNER within ten (10) working days for the difference, and nothing in this provision shall limit in any way OWNER'S right to pursue its appropriate remedies in law or equity. All funds not applied by OWNER'S FORESTER as specified above shall be returned to the PURCHASER upon satisfactory completion of all PURCHASER'S obligations hereunder. 9. CUTTING OPERATIONS AND REPORTS: a) PURCHASER will report on or before Friday of each week set forth above while cutting operations are being conducted upon the land to OWNER'S FORESTER, Forest Environmental Solutions, LLC, P.O. Box 145, Dade City, FL 33526, who is designated as OWNER'S representative to receive such information, the number of truckloads of timber removed from the land during the preceding week, together with Page 3 such other information as OWNER may reasonably request. Payment in full for said timber shall accompany the weekly report, and report and payment shall be considered delinquent if not received within fourteen (14) days of the end of each weekly period. PURCHASER shall pay OWNER for all timber removed from the premises by PURCHASER'S producers, whether such timber reaches its intended destination or not. b) PURCHASER shall keep records of all timber cut and removed under the provisions of this Timber Cutting Contract and OWNER shall be privileged, through such agents as OWNER shall select, during reasonable office howl, to examine PURCHASER'S records pertaining to the volume of timber cut and removed hereunder. C) In the event of intentional or repeated cutting of trees designated not to be cut, OWNER shall have the right to terminate this Contract and PURCHASER'S right to out any further trees hereunder. In such event, PURCHASER shall promptly remove the timber previously cut from the land and PURCHASER will indemnify and hold OWNER and OWNER'S FORESTER harmless from and against any liability resulting from such cutting. 10. TITLE TO TIMBER: Title of the timber shall pass from OWNER to PURCHASER when, and only when, the tree has been severed from the stump. In the event any tree is damaged by fire, insect infestation, disease, windstorm, or any other casualty before it has been severed from the stump, the loss shall fall upon OWNER. 11. PERMITS, REGULATIONS, AND ENDANGERED SPECIES: a) OWNER, warrants that it has obtained any and all necessary tree removal permits and other authorizations from any governmental agency having jurisdiction in the removal of the trees conveyed in this Contract. OWNER also warrants that it has no knowledge of the presence of threatened, endangered, and protected species on the area on which the timber is located or over which PURCHASER must transport the timber, or OWNER warrants that it has indicated to PURCHASER the presence and location of said species to the best of OWNER'S knowledge. OWNER does not warrant that such threatened, endangered, or protected species are not present, and PURCHASER is advised that nothing in this Contract relieves PURCHASER of its responsibility to act within the law should the presence of such threatened, endangered, or protected species become known to PURCHASER or to any other patty who advises PURCHASER of the presence of such species. b) PURCHASER agrees that it shall conduct timber harvesting and hauling operations in accordance with Best Management Practices as prescribed by the State of Florida. PURCHASER agrees that should the unanticipated crossing of streams, creeks, drains, or other environmentally sensitive areas be required for hat -vest and hauling, then PURCHASER shall notify OWNER'S FORESTER who may approve or deny such operations. In any event, should such unanticipated actions of PURCHASER require additional permits from any governmental agency, operations requiring such permits may not proceed until PURCHASER has provided evidence of such permits to OWNER'S FORESTER. PURCHASER shall obtain all such permits at PURCHASER'S expense. 12. GENERAL CONDITIONS: Page 4 a) OWNER hereby grants unto PURCHASER, the right to enter upon said land durin daylight hours only during the term hereof, with tools, wagons, calls, trucks, men and equipment and all other conveyances that may be necessary or convenient for the preservation, care, cutting and removal of said trees and timber, together with the right to operate roads and roadways upon, over and across said land, and all other necessary rights of ingress and egress. PURCHASER while not in default shall have, and is hereby granted, the right during daylight hours only during the term hereof, and for thirty (30) days thereafter, to remove any and all machinery, equipment and other property of PURCHASER, whether or not so fixed on the land as to be regarded in law as part of the land. b) OWNER hereby fully warrants the title to the land herein described, and to the timber to be cut therefrom, and will defend the same against the lawful claims of all persons whomsoever. OWNER expressly represents and warrants that there are no mortgages, liens, tax liens, leases, deeds to secure debts, or other encumbrances against said timber. C) In cutting and removing said trees, PURCHASER shall follow good and accepted harvesting practices. Without limiting the generality of the foregoing, PURCHASER shall keep all drainage ditches, fire lines, well defined roads and bridges free of tops and limbs and maintain the same in as good condition as the same now are; PURCHASER shall promptly repair any damage to the fences, gates and other improvements of OWNER resulting from PURCHASER'S operations. PURCHASER shall cut trees at the ground line or as close as practicable but in no case shall stumps exceed six inches above ground line in height. PURCHASER shall not set any fire on the land and PURCHASER, its agents and employees, while engaged in cutting and removing said timber, shall without charge to OWNER, assist OWNER in fighting and suppressing any and all fires upon or threatening the land upon which cutting operations are then being conducted. Seedlings and trees not to be cut shall be protected from unnecessary injury. d) PURCHASER shall prevent damage to any of OWNER'S trees and timber not subject to this Contract. If PURCHASER cuts or seriously damages such trees, PURCHASER shall pay OWNER three times the value of the cut or damaged trees as determined by OWNER'S FORESTER. e) PURCHASER hereby accepts roads in their present condition and accepts responsibility and expenses for any improvements in roads necessary to cut, haul, and remove said timber. During the timber harvesting operations PURCHASER shall maintain all roads in a usable condition, suitable for the vehicular traffic to which the road is normally subjected. f) PURCHASER shall indemnify and hold OWNER harmless from all liability for injury or damage to persons and their property resulting or to result from any negligent act by PURCHASER or its agents or employees, in the conduct of PURCHASER'S operations on the land or OWNER described herein. 13. INSURANCE: PURCHASER represents and guarantees that all employees, agents, servants or representatives of the PURCHASER, and all independent contractors contracting with PURCHASER for the performance of any part of the timber cutting operation contemplated by this Contract, and its or their agents, servants, employees or representatives are covered by workers' compensation insurance. PURCHASER agrees to furnish OWNER, through OWNER'S FORESTER, at the time of execution of this instrument, certificates of insurance, Page 5 naming OWNER as certificate holder, providing evidence that PURCHASER has in full force and effect the following minimum insurance with insurers authorized to do business in the State of Florida. a) workers' compensation insurance $100,000 each occurrence as required above; b) motor vehicle liability insurance with limits of not less than $500,000 combined single limit which insurance shall be applicable to any and all vehicles utilized by PURCHASER in removing timber from the timber cutting area and across the adjacent land or lands owned by OWNER; C) commercial general liability insurance and contractual liability insurance for all operations directly or indirectly connected with performance of this Contract by PURCHASER with a minimum of $1,000,000 personal and advertising injury and $1,000,000 general aggregate. Such certificates shall show that said policies provide that they shall not be cancelled or materially changed until at least ten (10) days prior written notice has been given to OWNER, through OWNER'S FORESTER, by the insurance carrier. 14. TAXES: It is an obligation of OWNER to pay before delinquent all ad valorem taxes against the land and timber and to pay before delinquent any and all liens against the land and timber. It is the obligation of PURCHASER to pay the documentary taxes, and/or sales tax, if any, required for the sale and purchase of timber conveyed by this Contract. PURCHASER shall pay the cost of recording a Notice of Timber Sale Contract should PURCHASER desire to record. Said Notice of Timber Sale Contract shall not state the price of the timber conveyed. 15. DEFAULT: a) Should PURCHASER default in the performance of any obligation on its part to be performed, and should such default continue and be not remedied to the reasonable satisfaction of OWNER within forty-eight (48) hours after constructive notice of default has been given to PURCHASER, or in the event of repeated defaults, then OWNER may, at its option, suspend PURCHASER'S right to cut and remove any timber from the land described herein until such default has been remedied to the reasonable satisfaction of OWNER or OWNER'S FORESTER. Constructive notice may include oral, telephone, or written communication of such default by OWNER or OWNER'S FORESTER. In the event PURCHASER'S right to cut and remove any timber from the land described herein is suspended, OWNER may serve written notice of default upon PURCHASER at the address shown on page one hereof that unless default has been remedied to OWNER'S reasonable satisfaction within fourteen (14) days, then this Contract shall be terminated. In the event this Contract is terminated, PURCHASER shall promptly remove all trees which have been theretofore cut. OWNER in no way waives the right to take any action to recover actual damages, which exceed PURCHASER'S deposit. Payment of all moneys becoming due hereunder by the PURCHASER is a condition precedent to the performance by the OWNER of the covenants and conditions of this Contract to be kept and performed by the OWNER. b) In the event the PURCHASER shall fail to pay any sums due in this Contract for a period of fourteen days (14) after such payments become due, then the OWNER may suspend PURCHASER'S right to cut and remove any timber from the land described Page 6 herein until full payment is made, or OWNER may terminate this Contract. The rights and remedies provided OWNER hereunder are cumulative and in addition to those provided by law. 17. PARAGRAPH TITLES: Paragraph titles are used merely for convenience and do not necessarily indicate the contents of the paragraph. 18. GENDER: Where context so requires or permits, the masculine shall include the feminine, the neuter, and the singular the plural. 19. ASSIGNMENT: This Contract shall be binding upon and shall inure to the benefit of the heirs, legal representatives, successors and assigns of the parties hereto. PURCHASER may assign this Contract to forest product companies and lending institutions as collateral for advance against the subject timber, but shall not be released from any and all liability under this Contract. 20. ARBITRATION LAW: In the event there is any disagreement or misunderstanding as to the terms of this AGREEMENT or full compliance with any obligation by either the PURCHASER or the OWNER, then the parties mutually agree that such dispute shall be arbitrated by each appointing one (1) arbitrator, and the two (2) arbitrators so appointed shall appoint a third arbitrator, and the OWNER and the PURCHASER each agree to be bound by the findings of such board of arbitrators under the statutes of the State of Florida. Each such arbiter shall be an attorney licensed to practice law in the State of Florida and shall have at least five (5) years experience in matters involving forestry and/or timber contracts. Any time consumed in awaiting the award of the arbitrator shall be added to the initial term of this AGREEMENT, not to exceed sixty (60) days in which event the contract shall be terminated. The prevailing party in any arbitration proceeding shall be entitled to recover their reasonable attorney fees. 21. GOVERNING LAW: This Contract shall be construed according to the law of the State of Florida, is to be performed in the State of Florida and any action brought thereon shall be brought within the State of Florida. 22. ENTIRETY: This Contract represents the entire agreement and understanding between PURCHASER and OWNER with respect to the subject matters addressed hereby. Any amendment to this Contract shall be in writing executed by both PURCHASER and OWNER. IN WITNESS HEREOF, the parties have executed this instrument, in triplicate this 101x' day of June, 2020, each copy to be considered any original, as of the day and year first aforesaid. Page 7 Signed and delivered in our presence as witness: Witness As to Owner Witness Name Printed or Typed Witness As to Owner Witness Name Printed or Typed OWNER City of Ocoee City of Ocoee Print Signed and delivered in our presence as witness: PURCHASER Flatwoods Forest Products, Inc. Witness As to Purchaser Witness Name Printed or Typed Witness As to Purchaser Witness Name Printed or Typed for Flatwoods Forest Products, Inc. 1.3 As its: Page 8 TIMBER SALE ASSISTANCE AGREEMENT THIS AGREEMENT is made between Forest Environmental Solutions, LLC, P.O. Box 145, Dade City, FL 33526-0145, hereinafter referred to as "FES", and City of Ocoee, C/o Mr. Craig Shadrix, 150 N. Lakeshore Drive, Ocoee, Florida 34761-2223, hereinafter referred to as "Owner", for the purpose of defining the professional forestry services to be provided by FES, on approximately 60.2 acres of land located within Sections 6 & 7, Township 22 South, Range 28 East, Orange County, Florida. This agreement includes the following parcels identified by the Orange County Property Appraiser's Parcel Identification Numbers: 06-22-28-0000-00-004:6.81 acres 06-22-28-0000-00-005:13.51 acres 06-22-28-0000-00-055:6.98 acres 06-22-28-0000-00-056:17.96 acres 06-22-28-0000-00-082: 2.67 acres 07-22-28-0000-00-003:12.30 acres DUTIES OF FES: For a period of six (6) months from the date of this agreement, with mutually agreeable provisions for an extension, Owner retains and grants to FES, the exclusive right to provide the following forestry services: Design, implement, and coordinate a harvest strategy with the Owner to ensure the proper amount and type of trees are left as necessary for natural regeneration and to accomplish the desired stand conditions. 2. Mark timber sale boundaries utilizing GPS/GIS technology. Develop a market for the timber to be harvested. 4. Assist potential buyer in all tract reconnaissance. Solicit bids from potential timber buyers. 6. Advise Owner as to the acceptability of the bids. P.O. BOX 145 DADE CITY, FL 33526-0145 WWW.FESFL.COM PHONE: (352) 206-8776 FAX: (866) 410-8776 City of Ocoee FES -20-088 Timber Sale Assistance June 10, 2020 Page 12 7. Correspond with County regarding timber harvest and obtain all necessary permits, if any are required. 8. Ensure that FES is compliant with all requirements set forth by the County. 9. Submit a sample timber sale contract to Owner for review and assist in the development of a satisfactory timber cutting agreement between buyer and seller. 10. Obtain Purchaser's certificates of insurance providing evidence of general liability, workers' comp, and auto liability for all purchases of timber from Owner. 11. Monitor all harvest activities to insure: a. Only specified timber is removed. b. All specified timber is removed. C. Damage is minimized to the residual stand. d. Payment is made of all timber under contract. e. All timber harvested is delivered to buyer's mill. f. Mill scale tickets are in agreement with timber removals and payments made by the buyer. FES will employ a ticket security system to assist in tracking load payments. g. Detection of insect and disease activity that may occur and provisions made for salvage if practical and possible. 12. Cruise Owner's timber to obtain an estimate of its volume and value.* * Estimate of volumes and value made by FES in the course of performance under the terms of this agreement are the result of statistical samplings made in accordance with industry standards and with a variety of confidence levels depending upon what is agreed to between Owner and FES. Due to the variances and accuracy level inherent in sampling techniques, any volumes or values stated by FES are only estimates, based upon FES'S sampling, and are expressly declared by FES not to be precise statements and expected outcomes. Therefore Owner expressly agrees and understands that any volumes and values stated by FES may or may not be the volumes or values actually obtained through the performance of this Agreement by the parties hereto. DUTIES OF OWNER 1. Owner agrees to pay FES a fee of ten (10%) percent of the gross revenue generated from the sale of timber in consideration of FES' services. 2. All ordinary expenses incurred by FES including mileage, paint, aerial photographs, flagging, equipment, maps, time spent on the project are included in this fee. 3. Said fee is due and payable monthly upon receipt by Owner of payment for the timber and presentation of invoice by FES. This agreement shall terminate upon completion of City of Ocoee FES -20-088 Timber Sale Assistance June 10, 2020 Page 13 timber harvesting, fulfillment of all obligations by timber buyer under terms of contact for sale of timber, and payment of all fees due FES. 4. If FES inventories the timber, and Owner does not utilize FES to manage the harvesting of their timber, FES will be compensated for all time in preparing the timber sale at the hourly/mileage rates detailed in the "Additional Services" section below. The extent and number of meetings outside the above "Duties of FES" are not (mown and none are proposed. Additional meetings not related to the timber sale assistance services being provided that are requested by Owner, Owner's legal counsel, Owner's surveyor, or by regulatory agencies will be considered outside the above work scope and will require a separate agreement, or they will be invoiced on a time -and -material (T/M) basis per the current rate schedule. The current hourly rate for FES foresters is $70.00 per hour and the current IRS Standard Mileage Rate equals $0.575 per mile driven. FES does not consider verbal requests as authorization to provide additional services. In order to protect both FES and the Owner, written authorization from the Owner is required. Written requests/authorization can be sent to the following address: Forest Environmental Solutions, LLC P.O. Box 145 Dade City, FL 33526-0145 Or electronically to: JOELUESFL.com ADDITIONAL SERVICES Requested studies and/or work items outside of and/or not related to the above-described timber sale assistance services being provided will be considered additional work and will require a separate agreement, or will be invoiced on a time -and -material (T/M) basis per the current rate schedule. The current hourly rate for FES foresters is $70.00 per hour and the current IRS Standard Mileage Rate equals $0.575 per mile driven. FES does not consider verbal requests as authorization to provide additional services. In order to protect both FES and the Owner, written authorization from the Owner is required. BILLING Any work performed and billed on this project which remains unpaid after 60 days from initial billing shall be charged 1.5% interest per month. Any balance remaining unpaid after 90 days from the date of the initial billing shall be deemed in default with reasonable collection and attorney's fees due and payable. City of Ocoee FES -20-088 Timber Sale Assistance June 10, 2020 Page 14 ATTORNEY FEES In the event any disputes arise between the parties concerning the enforcement of this Agreement, the prevailing party in any resulting litigation is entitled to recover their reasonable attorney fees. In the event legal proceedings are initiated by either party concerning this agreement, venue of the proceedings shall be in Orange County, Florida. Date: June 10, 2020 By: Date: Forest Environmental Solutions, LLC Joseph M. Gocsik Managing Member Owner City of Ocoee Print Name: