Title
Resolution to Authorize a Contract with Margolis Companies, Inc. for the Purchase, Delivery and Planting of Trees along City Street Rights-of-Way ($321,550.00; Bid No. ITB-4578)
Memorandum
Attached for your approval is a resolution to authorize a contract with Margolis Companies, Inc. (Margolis) in the amount of $321,550.00 for the planting of trees along City street rights-of-way.
ITB-4578, Street Tree Planting, was issued on BidNet for the purchase, delivery, and planting of 1,000 trees along City street rights-of-way. Three bids were received and opened on April 24, 2019. Margolis was the lowest responsible bidder.
The street trees to be planted as part of this project will be planted in areas identified in the FY2020 Street Tree Planting Plan. The Street Tree Planting Plan, which was included as part of ITB-4578, is attached. Trees provide many environmental, social and economic benefits to the city including, decreasing the quantity of stormwater runoff and improving the quality of the run-off that reaches local lakes and streams.
Sustainability Framework: The work completed through this contract will help to achieve tree canopy targets identified in the Urban and Community Forest Management Plan, adopted by City Council in June 2014 (R-14-0696). In addition, it will help further goals in the City’s Sustainability Framework, including Sustainable Systems, Clean Air and Water and Healthy Ecosystem.
Budget/Fiscal Impact: City of Ann Arbor street tree planting has been identified as an eligible project for funding through the Michigan Department of Environmental Quality’s State Revolving Fund (SRF) loan program. The Washtenaw County Water Resources Commissioner (WCWRC) has secured this low-interest loan on behalf of the City, which will reimburse the City’s Stormwater Fund for its share of the project. This project may be eligible for loan forgiveness. The WCWRC will be assessing the City over a maximum of 20 years with annual installments not to exceed $22,500.00. The first payment is included in the approved FY20 Stormwater Fund Operations and Maintenance Budget and will be included in ensuing annual Stormwater Fund Operations and Maintenance Budgets, if so approved by City Council.
The resolution also includes a request for a 5% contingency in the amount of $16,077.50 to cover potential change orders to be approved by the City Administrator.
Staff
Prepared by: Tiffany Giacobazzi, Urban Forest & Natural Resource Planner, Public Works
Reviewed by: Craig Hupy, Public Services Area Administrator
Approved by: Howard S. Lazarus, City Administrator
Body
Whereas, Ann Arbor’s urban and community forest is a defining and valued characteristic of the city, which residents call “Tree Town;”
Whereas, The City’s Urban and Community Forest Management Plan has identified tree planting as an important component in maintaining a sustainable urban forest;
Whereas, Trees provide environmental, social and economic benefits to the city, including decreasing the quantity, and increasing the quality, of stormwater runoff;
Whereas, The City received tree-planting bids on April 24, 2019 and Margolis Companies, Inc. (Margolis) was the lowest responsible bidder at $321,550.00;
Whereas, Margolis complies with the City’s non-discrimination and Living Wage Ordinances;
Whereas, A low-interest SRF loan, which may include loan forgiveness, has been secured through the Washtenaw County Water Resources Commissioner for the project;
Whereas, Proceeds from the SRF loan will reimburse the City’s Stormwater Fund; and
Whereas, The SRF debt payment estimated at $22,500.00 annually is included in the approved Stormwater Operations and Maintenance Budget, if so approved by City Council;
RESOLVED, That a contract in the amount of $321,550.00 be awarded to Margolis for the purchase, delivery and planting of trees along City street rights-of-way (Bid No. ITB-4578);
RESOLVED, That a contract contingency in the amount of $16,077.50 (5%) be established and the City Administrator be authorized to approve change orders to the contract with Margolis to satisfactorily complete this project;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute said contract after approval as to form by the City Attorney and approval as to substance by the City Administrator;
RESOLVED, That funding for the contract and contingency amount be available for the life of the project until expended without regard to fiscal year; and
RESOLVED, That the City Administrator be authorized to take the necessary administrative actions to implement this resolution.