Item #08 Approval of Contract with Forest Environamental Solutions LLC be C of Good z
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AGENDA ITEM COVER SHEET
Meeting Date: December 4, 2012
Item #
Reviewed By:
Contact Name: Craig Shadrix, Assistant Department Director: ._..
City Manager &— --
Contact Number: (407) 905 -3111 City Manager:
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, Gary Hood
Background Summary:
As a result of recent evaluation of City -owned properties in the Crown Point Property area (see attached map),
staff determined that not only do some of the properties pose potential issues during the dry season (where we
are at an increased risk from wildfires), but some contain potentially valuable timber. On October 19, 2012,
professional forester Joe Gocsik of Forest Environmental Solutions, LLC conducted a brief review of these
lands at the staff's request and recommended their viability for harvest. 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 Toads 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
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 $25,000.
Type of Item: (please mark with an 'x')
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 N/A
Reviewed by Finance Dept. N/A
Reviewed by 0 N/A
2
CITY OF OCOEE LATITUDE: 28 °36'3.44 "N SECTIONS 1 & 12, TOWNSHIP 22 SOUTH,
PINE STAND MAP LONGITUDE: 81 °33'38.249 "W RANGE 27 EAST, SECTIONS 6 & 7,
APPROXIMATELY 154.21 ACRES TOWNSHIP 22 SOUTH, RANGE 28 EAST,
OCTOBER 31, 2012 ORANGE COUNTY, FLORIDA
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DISCLAIMER:
FOREST ENVIRONMENTAL SOLUTIONS, LLC THIS MAP IS NOT ASURYEY
P.O. Box 145 ANY DERIVED ACREAGE NUMBERS
ON THIS MAP OR ACCOMPANYING REPORT
DARE CITY FL 33526 0145 ARE APPROXIMATE AND SHOULD ONLY BE
PHONE: 352-206-8776 USED FOR PLANNING AND MANAGEMENT PURPOSES
EMAIL JOEQFESFL COM THIS MAP IS NOT SUITABLE FOR ENGINEERING DESIGN
N OR CONSTRUCTION. ANY USE OF ASSOCIA ED ACREAGE
NUMBERS FOR SALES OR NEGOTIATIONS IS ENTIRELY AT THE
RISK OF SAID PERSON(S) UTILIZING THE NUMBERS AS SUCH
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1,000 500 0 1,000 Feet
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FOREST ENVIRONMENTAL SOLUTIONS, LLC
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 154 acres of land located within Sections 1 & 12, Township 22 South, Range
27 East, and Sections 6 & 7, Township 22 South, Range 28 East, Orange County, Florida. This
agreement includes the following parcel(s) identified by the Orange County Property Appraiser's
Parcel Identification Number(s):
07- 22 -28- 0000 -00 -003: 12.28 acres
06- 22 -28- 0000 -00 -056: 17.96 acres
06- 22 -28- 0000 -00 -055: 6.98 acres
06- 22 -28- 0000 -00 -054: 47.48 acres
01- 22 -27- 0000 -00 -012: 221.71 acres
06- 22 -28- 0000 -00 -005: 13.51 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:
1. 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.
3. Develop a market for the timber to be harvested.
4. Assist potential buyer in all tract reconnaissance.
5. Solicit bids from potential timber buyers.
6. Advise Owner as to the acceptability of the bids.
P.O. Box 145 Phone: (352) 206 - 8776
Dade City, FL 33526 -0145 Fax: (866) 410- 8776
WWW.FESFL.COM
City of Ocoee
FES -12 -115
Timber Sale Assistance
October 31, 2012
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 -12 -115
Timber Sale Assistance
October 31, 2012
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 marks and 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 "Scope of Services" section
below.
REQUESTED MEETINGS
The extent and number of meetings outside the above "Duties of FES" are not known 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 $0.555 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 JOE @FESFL.com
SCOPE OF 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 $0.555 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 not described in the Scope of Services will only be undertaken after being approved by the
Owner. Reimbursable expenses including overnight or courier delivery services, out of office
reproductions, etc. will be billed to the Owner at cost. Mileage will be billed at $0.555 per mile. Any
fi work performed and billed on this project which remains unpaid after 60 days from initial billing shall
City of Ocoee
FES -12 -115
Timber Sale Assistance
October 31, 2012
Page 14
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.
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.
VENUE
In the event legal proceedings are initiated by either party concerning this agreement, venue of the
proceedings shall be in Pasco County, Florida.
Project Forester
Forest Environmental Solutions, LLC
!V�
Date: October 31, 2012 By:
Joseph M. Gocsik
Managing Member
Owner
City of Ocoee
Date: By:
Print Name: