VBG Board Agenda Database
Authorization to Waive Bids and Award Contract: 2012 Part 2 Tree Growing Contract
|Recommendation of Action
Staff recommends approval of a bid waiver and authorization to enter into a contract with Eugene A. de St. Aubin & Bros., Inc. in an amount not to exceed $561,000 to provide up to 3,300 parkway trees. A waiver of bids is requested to lock in 2012 pricing for this planting cohort and in response to the EAB epidemic.
|Fund / Account
To be funded from the revolving line of credit.
As previously reported to the Village Board, staff anticipates that the prices for parkway trees will escalate as the Emerald Ash Borer (EAB) epidemic peaks in the next few years. It is recommended that the Village lock in pricing for Ash tree replacements at this time. The best option available to lock in pricing is to work with a private nursery to grow trees for the Village under contract. The Village will have a need for 7000 replacement trees between 2014 and 2019 as a result of EAB infestation.
Eugene A. de St. Aubin & Bro. Inc. (St. Aubin's), the Village's current provider for parkway tree replacements, was previously awarded a growing contract for 1,000 trees in the Spring of 2012.
With the goal of replacing removed Ash trees within one year, Staff is projecting that a batch of 3,300 trees can be planted in the Spring of 2013 for harvest in the Fall 2015-Fall 2016 time period.
The trees would be mature enough for delivery to the Village in 2015-2016 after care and cultivation by the St. Aubin's staff through three to four growing seasons.
At a total contract cost of $561,000.00, the cost would be at best $170/tree (100% survival) or at worst $188/tree (90% survival). These prices would be very favorable when compared to the Village's current pricing for parkway trees and compared to current pricing seen from other long term growing contracts such as the Suburban Tree Consortium. Given that pricing is expected to rise in coming years, staff believes that this will be the most cost effective solution for trees available as soon as fall of 2015.
A bid waiver is recommended given 1) the Village's past positive experience with St. Aubin's; 2) the Village's current contract with St. Aubin's for tree growing; and 3) the favorable pricing comparisons.
On the last batch of 1,000 trees, the Village was able to secure a Performance and Payment Bond from the contractor. Due to the size and cost of this second batch, the Village has been informed that 1) St. Aubin would not be able to get a bond in excess of $500,000 without substantial collateral; 2) the bond markets would require a one year annually renewable bond form to be used; and 3) the cost would be in excess of $15,000 per year. Therefore, the Village will be looking to insure this contract through IRMA or through our own insurance policy, such as crop insurance.
Staff recommends a waiver of bids and authorization for the Village Manager to enter into a contract with Eugene A. de St. Aubin & Bro. Inc in the amount not-to-exceed $561,000.
Approximately 2,000 trees will be still be needed to be planted given the EAB infestation. Given the timeline, these trees will need to be purchased, rather than grown, in 2013-2014.
Authorization to Waive Bids and to Purchase - 2012 Parkway Tree Growing Contract (June 4, 2012)
Anticipated Future Board Actions
If a bond, contract insurance, or crop insurance is more than $15,000, authorization will be requested of the Board at a later meeting.
|Monday, September 10, 2012
||New Business - Item : 13-D
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Data Source: Village of Buffalo Grove - Board Meeting Agendas Database