Fiscal Note
The Parks Division is budgeted to purchase trees costing a total of approximately $350,000 during 2007. The majority of these trees will be reimbursed through special assessments, with the remainder paid for through the property tax or financed with borrowing.
Title
AMENDED SUBSTITUTE - Authorizing the Forestry Section of the Parks Division to purchase trees on a sole or dual source contract to be effective indefinitely until January 1, 2017 from either or both of two Wisconsin nurseries, McKay Nursery and Johnson Nursery.
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Preamble:
The Forestry Section of the Parks Division for the City of Madison plants approximately 2800 trees per year in new subdivisions and to replace trees that were removed. In the past, when tree orders were competitively bid, the stock quality varied and had a higher mortality rate resulting in removals, replantings and additional inspections by Forestry staff. Furthermore, to prevent the introduction of insect infestations, such as the Emerald Ash Borer, in neighboring states it is preferable to order trees grown in Wisconsin.
The Forestry Section is requesting that they be allowed to purchase trees on a sole or dual source contract from two Wisconsin nurseries that have consistently provided high quality trees with good survival rates. Those Wisconsin nurseries are McKay Nursery and Johnson Nursery.
If it is necessary to purchase these trees through a competitive bid process it will limit availability of trees in the size and species that are needed. There are not sufficient staff nor is there sufficient time for staff to determine the quantities to be ordered far enough in advance to allow sufficient time to go through a competitive bid process and have the orders placed for the following spring (April) planting since Forestry staff is working on fall plantings during that time period.
The Forestry Section has determined that McKay Nursery has the Bareroot (BR) stock available in the sizes and quantities it needs and there is limited availability of some sizes and species. It is necessary to reserve some species early regardless of price in order to have them for planting the following season. Madison competes for tree availably with other large municipalities such as the City of Chicago.
Johnson Nursery has become the preferred source of B&B (Balled and Burlapped) because they have more tightly wrapped balls, which make trees easier to handle. This is an important consideration when crews unload, load, unload again and ultimately plant 500-600 B&B trees that weigh over 200 pounds a tree. Johnson's has proved to supply successful transplanted trees with good form and excellent survivability. The City of Madison self guarantees the tree plantings to keep prices lower. Past failures with other nurseries have led to this arrangement.
Ordering from either a sole source or dual source also provides a delivery cost savings. The charge is $400-$550 a delivery, whether it is a partial semi load or a full semi load. Furthermore, the Forestry Section does not want to receive partial loads from several different nurseries. It would pay more for shipping and there would be more time lost from a worker standpoint because Forestry crews unload and store the trees as they are received until the actual planting begins.
The tree order is extremely complex and time sensitive. More than 2000 trees are delivered within a 4-week timeframe. This includes six semi-loads of B&B and four loads of BR that the Forestry crews unload and store.
WHEREAS, the Forestry Section of the Parks Division has determined it is cost effective to switch to sole/dual source vendors for its tree plantings; and
WHEREAS, the Forestry Section has had an excellent success rate with two Wisconsin nurseries who have supplied trees in the past, and
WHEREAS, the funding for the purchase of these trees comes from multiple sources. The majority of the funding comes from the assessable tree account paid for by homeowners, the city pays for replacement trees through the general operating budget, and some are paid for through specific engineering street reconstruction accounts. Funding is also received from MG&E to replace trees removed under wires with utility friendly trees.
NOW THEREFORE BE IT RESOLVED that the Forestry Section of the Parks Division is authorized to purchase trees on a sole/dual source contract from McKay Nursery and/or Johnson Nursery.
BE IT FURTHER RESOLVED that this sole/dual source contract authorization be effective indefinitely until January 1, 2017.