Agenda Item Wording:
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Award a Contract for Walnut Orchard Demolition and Removal and Appropriation of Funds - Award a contract to JFS Enterprises for Walnut Orchard Demolition and Removal in the amount of $495,000 to demolish and remove 130 acres of Walnut Orchards surrounding the Water Reclamation Facility (WRF), and appropriate $550,000 from the Wastewater Fund.
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Deadline for Action: 11/18/2024
Submitting Department: Public Works
Contact Name and Phone Number: Nick Bartsch 559-713-4428 ; Ben Litwack 559-713-4671 ; Rehana Cale 559-713-4176
Department Recommendation:
Staff recommends that the Council authorize staff to enter into a contract with JFS Enterprises in the amount of $495,000 for the demolition and removal of the 130 Acres of Walnut Orchards surrounding the Water Reclamation Facility (WRF) in accordance with RFB-24-25-18; and appropriate $550,000 from the Wastewater Fund (431).
Background Discussion:
Based on the health and condition of the walnut orchards, historical and projected crop production, and associated uncertainties related to groundwater sustainability regulations, the City Council directed City staff to stop farming the 130 acres of Walnuts in December 2023. This direction also included the removal of the walnut orchard and the exploration of long-term lease options that would be compatible with the Wastewater Treatment Plant operations.
Request for Bids RFB-24-25-18: Walnut Orchard Demolition & Removal was advertised in the Visalia Times Delta on September 25th and October 1st, 2024. Notices were sent to 57 agricultural contractors, 24 tree service contractors and posted on BidNetDirect online. A pre-bid meeting was held on October 8, 2024 and several Contractors attended. Based on the pricing recently experienced for similar work on the City’s East Side Orchard Removal Project, staff estimated these costs to be $975,000. On October 22, 2024, the City received eight (8) bids, with JFS Enterprises being the lowest bid.
Bid Summary:
1. JFS Enterprises Fresno, CA $ 495,000
2. Kroeker Fresno, CA $ 595,000
3. Nates Tree Service Sonora, CA $ 605,000
4. Ares Engineering Tollhouse, CA $ 795,250
5. HD Mathews Demo and Excavation Fresno, CA $ 860,323.12
6. Ag Industrial Enterprises Earlimart, CA $ 886,396.20
7. DSB Ag Services Williams, CA $ 961,940
8. Katch Environmental Fresno, CA $ 1,415,000
Staff has reviewed JFS Enterprises’ qualifications and their provided references and found them to be properly licensed with a positive work history. Additionally, JFS Enterprises is the current contractor on the East Side Orchard Removal project, which is underway and progressing satisfactorily.
Fiscal Impact:
The farmland surrounding the Water Reclamation Facility (WRF) is owned by the Wastewater Fund (431) and operated under the Farming Division (4344). Therefore, costs associated with the operation, and the subject tree removal, are paid by the Wastewater Fund (431). Staff is requesting the appropriation of $550,000 to cover the cost of the removal contract and provide a contingency to address any unforeseen conditions that may be encountered.
Based on the prior direction from City Council to take these walnuts out of production, Staff recently submitted a proposal to the Greater Kaweah Ground Water Sustainability Agency (GKGSA) to fallow this land, under their 2024-2025 Fallowing Program. The program is offered to Growers within the GKGSA’s jurisdictional boundaries in an effort to reduce demand on the groundwater resources of the GKGSA, thus reducing impacts to domestic and irrigation wells, and move toward groundwater sustainability. Subject to Council’s acceptance and approval of a land-fallowing agreement with the GKGSA, under this program, the land shall remain fallowed from October 1, 2024 through September 30, 2025. In turn, the City would receive $500 per field acre that is fallowed. Therefore, if accepted, this would equate to approximately $60,435 in revenue that could ultimately be used to offset the impact of these one-time expenses of removal.
Prior Council Action: - December 18, 2023 - City Council was presented an update to the city-owned farmland and farming operations and provided direction to cease farming operations of the 130 acres of walnuts. - February 16, 2021 - City Council was presented an update to the city-owned farmland and farming operations. - February 19, 2019 - City Council entered into a contract with Jeb Headrick Farming for an annual not to exceed amount of $1,000,000.
Other: N/A
Alternatives: N/A
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to authorize staff to enter into a contract with JFS Enterprises in the amount of $495,000 for the demolition and removal of the 130 Acres of Walnut Orchards surrounding the Water Reclamation Facility in accordance with RFB-24-25-18; and appropriate $550,000 from the Wastewater Fund (431).
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Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments: Attachment #1 - Orchard Removal Map