A&K Precision Management RFP# 24-25-02 February 5th, 2025 CONFIDENTIAL Page 1
CITY OF VISALIA REQUEST FOR PROPOSAL RFP# 24-25-02 Purchasing Division 707 W. Acequia Avenue Visalia, CA 93291 Proposal For Farm Management Services A&K Precision Management 11945 Avenue 274, Unit B Visalia, CA 93277 (559) 707-5286 [email protected] [email protected]
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A&K Precision Management 11945 Avenue 274, Unit B, Visalia CA 93277 February 5th, 2025 Re: RFP#24-25-02 Farm Management Services To Whom It May Concern: We are pleased to offer herewith our proposal for the following farm management services contract for the City of Visalia: 100 acres of established pecans (2013) 156 acres of established pecans (2014) 189 acres of established pecans (2015) Total farmed acres: 445 acres A&K Precision Management, under the direction of Jeb Headrick Farming (A&K), has had the privilege of providing custom farm management services for the City of Visalia at the above properties since March 2019. In the five years that we have been managing the properties, we have overseen a transition from sub-optimal to currently thriving and healthy acreage. We hope to be able to continue our relationship with the City of Visalia and continue this positive track record going forward. A&K Precision Management is owned and operated by Mr. Kevin Rost and Mr. Abel Arroyo, who are active in the day-to-day management of the Company’s operations and collectively have 30 years’ experience farming permanent crops in the Visalia area. You will be working directly with the owners of the Company. Attached is our proposal to continue to farm the City of Visalia’s pecan acreage as A&K transitions into a consultative role. We are excited to provide this proposal to the City and look forward to the opportunity to continue our partnership with the City of Visalia. For questions and discussion regarding our proposal, please contact either of us via email or phone (559) 707-5286. We look forward to further discussions at your convenience. Regards Mr. Kevin Rost Mr. Abel Arroyo Owner-Operator Owner Operator A&K Precision Management RFP# 24-25-02 February 5th, 2025 CONFIDENTIAL Page 3
TABLE OF CONTENTS A
General Information Page 4 B Proposed Project Approach 6 C Staff Qualifications & Related Experience 14 D Proposed Fee Structure & Schedules 16 E Conflicts of Interest 22 F Permits, Licenses & Insurance - Business Tax Certificate - Professional Licenses - Permits - Insurance Certificates - 23 G Attachments - Addendum #1 - Non-Collusion Affidavit - Workers Compensation Insurance Certificate - EEOC Certificate - Statement on Previous Contracts Subject to EEOC - ADA Compliance Certificate - Ownership Disclosure & Levine Act - Drug-Free Workplace Certification - Iran Contracting Act - Budgets - Pathway to profitability - Proposed Management Structure Fee 24 A&K Precision Management RFP# 24-25-02 February 5th, 2025 CONFIDENTIAL Page 4
(A) GENERAL INFORMATION Firm Name Address Telephone Number Email Address A&K Precision Management 11945 Avenue 274, Unit B Visalia, CA 93277 (559) 707-5286 [email protected] [email protected] Account Representatives For questions regarding this proposal: A&K Precision Management 11945 Avenue 274, Unit B Visalia, CA 93277 (559) 707-5286 [email protected] [email protected] For billing, pricing and other account information: A&K Precision Management 11945 Avenue 274, Unit B Visalia, CA 93277 (559) 707-5286 [email protected] [email protected] Type of Organization General Partnership Federal Tax ID # 85-3883391 Ownership Disclosure Form 100% owned and operated by Rost Management LLC (50%) and Arroyo Ag Advising (50%). Rost Management is 100% owned by Mr. Kevin Rost; Arroyo Ag Advising is 100% owned by Mr. Abel Arroyo.
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Personnel A&K employs a full-time, year-round staff of approximately 2 personnel, increasing at various times to between 40 and 70 personnel, based on the seasonal needs of our clients throughout the year, through long-standing relationships with subject-matter experts depending on the tasks required. See Section C: Staff Qualifications and Related Experience. References & Referrals Jeb Headrick Farming Campesinos Farm Labor Inc. Wilbur Ellis Apollo Ag Technology Faith Farms Services See Also Section C: References & Referrals Surety Information: General & Automotive Liability Workers Compensation General Liability See Section F: Permits, Licenses & Insurance
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(B) PROPOSED PROJECT APPROACH A&K will exercise good faith and utilize best judgment, in consultation with the City, to undertake on its behalf the duties and responsibilities to manage the property. We will use our best efforts to not incur excessive costs or expenses. We propose continuing the same approach to farming as to that provided by Jeb Headrick Farming since assuming the farm management role for these properties in March 2019. As we have been working with Jeb Headrick Farming on the subject property for the last 5 years, we are intimately familiar with the property’s characteristics and farming efforts required. Such continuity in farm practices will eliminate any surprises (cultural, financial) and maximize tree and soil health. Specifically, we would assume responsibility for and provide everything necessary to facilitate the successful management of the 445 acres of and pecans, including the following key areas and activities: We will continue to farm the property in a good, farmer-like manner in accordance with the usual standards of good farming and husbandry required. Specifically: 1. Water Management & Irrigation a. A&K will maintain and repair of all irrigation systems, sprinklers, pumps, reservoirs and the application of any chemicals required. b. Irrigation management will be based on orchard needs and include the following strategy: i. Water scheduling based on orchard needs; ii. Ensure micro-irrigation system is function at design specifications; iii. Irrigation scheduling based on stress-testing with pressure bombs. iv. Chemical shock treatments and hose chemical treatments for improved water quality in reservoirs and irrigation systems. v. Usage of technology such as, but not limited to, moisture probe software. 2. Pruning & Tree Maintenance a. A&K will maintain a tree management program to include: i. Pruning towers (machine), manual and electric pruning; ii. Hedging; iii. Stacking; iv. Chipping; v. Shredding brush; vi. Tying; vii. Installing and removing tree protectors viii. Suckering; ix. Removing excess tree weight: x. Installing and removing tree stakes as required; xi. Budding / grafting.
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3. Pest Control Management, Fertilizer and Chemical Application a. A&K will provide and apply all chemicals and fertilizers as required throughout the year. b. Spray strategy as follows: i. Engine-driven sprayers for maximum coverage to ensure control of targeted pests. ii. Pecans: 300 gallons / acre @ 2 mph. c. Weed strategy as follows: i. Spray weeds with boom sprayers to maximize herbicide efficacy. ii. Surgical spraying using new technology to target specific weeds that is expected reduce chemical expenses over a 5-year period by up to 50% (not reflected in year 1 budget). d. Mr. Jeb Headrick, as advisor to A&K, has long-standing and well-maintained relationships with senior administration officials at the local charter school which is in the vicinity of the subject property, Sycamore Valley Academy, so that spray applications are always performed with the utmost safety considerations in mind. 4. Harvest a. A&K will oversee the harvesting of pecans, including: i. Pre-harvest preparations; ii. Actual harvest, including arranging crews and equipment as required; iii. Daily on-site harvest supervision; iv. Transportation of harvested product to nut processors as agreed with the City of Visalia; v. Post-harvest clean-up and other related tasks. b. The costs associated with all harvest activities are not included in this proposal. A&K is happy to consult with the City of Visalia to review partner and cost options, and oversee all harvest activities once logistical decisions have been made by the City. 5. Farm Labor Management a. A&K will provide crews for all day-to-day farming tasks throughout the year including weeding, replanting, repairs, pest control, and all tasks required for the proper management and maintenance of the orchards. 6. Equipment a. A&K will provide all the equipment required to perform the farm management services, including mowing, discing, spraying, tractors, ATV’s, and trucks.
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b. A&K does not own any of its own cultural equipment. This allows us maximum flexibility in tailoring equipment specific to the needs of the orchard: the City of Visalia can be assured that only the most suitable equipment will be utilized. A&K’s ability to customize farm equipment and cross-utilize row-crop implements gives us an advantage over users of conventional orchard equipment given the wide tree spacing (35 feet) of the City of Visalia’s pecans to help control costs. 7. Regulatory Filings a. A&K will prepare and file all regulatory filings on behalf of the City of Visalia, including the Nitrogen Management Plan [the fees associated with NMP submissions are not included in the budget and are the direct responsibility of the City of Visalia). 8. Stewardship a. A&K will implement best practices regarding sustainability and ecology for the long-term health of the land under our farm management through water conservation and adoption of materials such as bio pesticides that are less impactful. b. A&K proposes partnering with the City of Visalia, always in the context of economic sensibilities, to promote positive, regenerative farming techniques and eliminate any negative perceptions around farming through education and bridging the gap between farm science and public perception. c. Mr. Kevin Rost and Mr. Abel Arroyo, as owner-operators of A&K will personally manage the Company’s activities, on-site, to ensure that the City of Visalia’s needs are met, and goals are achieved to the highest degree of quality and results. The following imagery shows the number of times the owners of A&K were on-site in 2024:
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9. Technology (Examples) a. A&K will be using electrostatic sprayers for maximum spray efficacy and reduced chemical costs. This technology improves the efficacy – and lowers the cost – of services provided, not only to increase productivity but also to offset the rising cost of inputs such as labor and chemicals. b. Water management software. c. Weather station technology. d. Soil mapping technology. e. Digital reporting.
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Before: Broken limbs, heavy weeds
After: Robust tree health; heavy crop set and yields
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Services Included in Proposal The following services and activities are included in this proposal and specifically the budget in Section D: - The application of pesticides, rodenticides, herbicides, fungicides, and other chemicals as needed. - Operation of the City of Visalia’s irrigation system on the subject properties. - Irrigation of the subject properties, including coordination with the Wastewater Plant and/or Water District. - General upkeep of the subject properties. - Harvesting, dehydrating of the crops. - Coordinating and ordering of new trees. - Planting of new trees, young tree training, budding, tipping, and tying mature tree pruning, stacking and disposing of brush, dead tree removal and replanting. - Regular fertilizing and application of nutritional sprays and soil amendments. - Assisting the City of Visalia with general decisions about the property. - Other duties as generally required to manage the farming operations. Affiliated Entities A&K may engage in the services of two affiliated entities to fulfill the services under this proposal. Both entities are owned 100% by the owners of A&K, and provide services to unrelated third parties under custom farming agreements: Rost Management LLC Owned 100% by Mr. Kevin Rost. Provides farm management, irrigation management and compliance services to commercial clients. Arroyo Ag Advisors Owned 100% by Mr. Abel Arroyo. Provides Pest Control Advisory (PCA), Agronomy and Farm Business Development services to commercial clients. No Financial or Beneficial Interest in Crop A&K confirms, by submission of this proposal, that it retains no financial or beneficial interest in the crop produced on the subject properties, and that all revenue received from the sale of the crops shall be payable directly to the City of Visalia.
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Services Excluded from Proposal The following services and activities are not included in this proposal, the costs for which are assumed to be the responsibility of the City of Visalia. A&K is willing to discuss whether or not it is appropriate for the City of Visalia to transfer responsibility for these activities to A&K, but for clarity’s sake, the cost for the provision of these activities is not included in this proposal: - Access to, and usage of, affluent water from the City of Visalia Wastewater Treatment Plant. - Access to, and usage of, water wells and various booster pumps on site (A&K and the City of Visalia shall determine the number of wells available for use based on the acres in production). - Payment of water assessments. - Payment for water, including district water costs, well pumping costs, booster pumping costs, including the provision of electric or power generators, if required. - Payment of electric bills for water pumps (well and booster). - Payment of property taxes. - Payment for trees to establish new or replacement plantings, if required. - Regulatory fees associated with Nitrogen Management Plan (NMP) and other regulatory filings. - Sale of crops (A&K will consult with City of Visalia to identify post-harvest handlers to market and sell the City of Visalia’s crops, proceeds for which will be remitted directly to the City of Visalia). Client Meetings A&K will host regularly scheduled meetings with the City of Visalia’s designated representative, on a monthly basis (or as frequent as the City chooses) to review: - Orchard Maintenance - Tree Health - Harvest and Post-Harvest Strategies - Crop Returns & Profitability - Tree Replacement & Planting Strategies - Budget and Projected Costs - Pecan Market Updates - Trends and Developments in Overall Agricultural Industry.
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Harvest & Post-Harvest Recommended Activities A&K and the City of Visalia’s representative will discuss harvest and post-harvest strategies for the pecan crops. A&K understands that the pecan crop is being handled by HNH Nut Company (31881 Road 160, Visalia CA 93292). Based on past performance, but dependent on review and cost considerations, discussion with and approval from the City of Visalia, A&K recommends HNH Nut Company to continue for the contract period as handler for the City of Visalia’s pecan crops harvested from the subject acreage. A&K maintains positive relationships with other potential buyers in case the City’s relationship with HNH Nut Company deteriorates or fails to meet the City’s and A&K’s mutual expectations.
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(C) STAFF QUALIFICATIONS & RELATED EXPERIENCE A&K manages over 2,000 acres of permanent crops in the Visalia area. The owners of A&K Precision Management are: Mr. Kevin Rost • Born in Hanford, CA • Resident of Visalia, CA • PCA License # 145507 QAL#135389 • Senior Partner, Crop Production Manager, Irrigation Consultant, Business Advisor • MBA with an emphasis on Regenerative Agriculture and Sustainability • BS – Regenerative Agriculture and Sustainability • AS – Plant Science and Precision Agricultural • 15 years’ experience as a Farm Manager, Crop Consultant, Irrigation Consultant, Business Advisor, Community Development Ambassador, and Urban Agriculture Business Consultant. Mr. Abel Arroyo, Pest Control Advisor - Born in Hanford, CA - Resident of Coalinga, CA - Agronomist, CCA CDFA # 215727,PCA # 142468,Categories ABCDEF - Senior Partner/Crop Production Manager - CSU Fresno B.S Crop Production Management - WHC Coalinga A.S Agricultural Sciences & Technology - WHC Coalinga A.S Agricultural Plant Sciences - Cal Polytechnic Advance Irrigation & Design BREA Certified - ESRI Global Advance Geospatial Certified - Class A License with all endorsements - 19 years’ experience Specialty Crop Advisor on Horticultural Environment, Ag Crop Sciences, Ag Production Sciences, Ag Production Systems. As owner-operators, Mr. Rost and Mr. Arroyo will be responsible for all day-to-day activities on the subject properties, and will be the City’s primary points of contact on all matters. A&K will be contracting certain labor activities through Jeb Headrick Farming – a strategic decision to provide key cultural continuity on the subject properties. For example, all irrigation and fertilizer applications will be overseen, under Mr. Rost and Mr. Arroyo’s direction, by Mr. Esteban Negrete, who has been the lead irrigator on the subject properties since 2019.
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REFERENCES & REFERRALS A&K provides the following references for whom it currently provides custom farming services on over 2,000 acres, including: Steve Ozuna Harris Farms 17,000 acres of Pistachios, Almonds, Row Crops Illume Agriculture 10,000 acres of Almonds, Grapes Don Headrick Self 1,000 acres of Pistachios, Almonds and Forage City of Visalia City of Visalia 445 acres of Walnuts & Pecans David Soults 300 acres of Pistachios Doug Anderson Self 250 acres of Pistachios West Hills College 230 acres of Pistachios & Row Crops Mario Semios MS3 – Dairy 75 acres of Pistachios Additional references include the following: Blake Houston Owner of HNH Nut Company Telephone numbers will be made available upon request. “Over the last two years, the City of Visalia’s pecans have been the highest quality product out of all 79 growers for whom we market.” - Blake Houston, Owner HNH Nut Company RELATED EXPERIENCE As aforementioned, A&K Precision Management has been contracted by Jeb Headrick Farming for the farm management and crop production of the subject properties since March 2019 and under Mr. Headrick’s direction provides Farm Management Services on behalf of JHF to the City of Visalia.
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(D) PROPOSED FEE STRUCTURE & SCHEDULES A&K Precision Management proposes an annual budget for services and responsibilities outlined under this proposal of $1,351,296, including harvesting costs, as follows:
This budget assumes the responsibilities as outlined in Section B. If the City of Visalia and A&K determine that it is necessary to amend the scope of services for which A&K will be responsible for, then the above budget will be amended to mutually-agreed levels. The budget is intended to be a guideline for the City of Visalia and not a ‘Not-to-Exceed’ number. For example, from time to time, A&K may identify needed but unbudgeted activities (for example, additional sprays in response to higher than expected pest pressure) that will result in additional costs. In such events, A&K will discuss the costs and risks with the City of Visalia’s representative before proceeding with the activity following the City of Visalia’s approval. Such activities may (or may not) result in an overall ‘budget variance’. Further budget variances may arise due to the volatility of input costs for such items as diesel, chemicals and fertilizer. Harvesting, hulling and processing costs will be variable based on the size of the crop harvested. The amounts included in the project budget are based on projected yields; actual yields (and therefore costs) will vary.
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2025 Management Fees A&K’s bid includes the following management fees for 2025, as follows: Per Acre Per Month Total Per Acre Total $ Management Fee $16.50 $198 $88,110 PCA Consulting Fee $2.00 $24 $10,680 TOTAL $18.50 $225 $98,790 To offset inflationary costs, A&K proposes an annual increase on the engagement anniversary, equal to the lesser of (a) 3.00% or (b) the annual cost of living increase as per the Bureau of Labor Statistics for West Urban Region B/C. Labor Rates The annual budget includes the following hourly costs for labor provided: General Farm Labor $25.50/ hour Machine Hedging $240/ hour Manual Pruning $28.75/ hour Electric Pruning $36.22/ hour (includes cost of pruning tool) Farm labor will be provided by Campesinos Farm Labor Contracting, Inc. Section F (Permits, Licenses and Insurance) includes documentation relating to Campesinos for the City’s review. Rates are inclusive of regulatory taxes and insurance. The City of Visalia can be assured that A&K will pass labor costs through at cost, without markup.
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Equipment Rates The above budget includes the following general services and equipment rates, including labor. Items marked with an asterisk (*) do not include labor, which will be billed separately based on actual hours worked. We intend to bill work in line with the category calendar budget attached. Activities Charged by the Acre (if needed): Activity Rate Per Discing – 1 pass Discing – 2 passes Float – 1 pass Mower – 2 passes Mower – 1 pass Mulcher Ripping – 1 pass Ripping – 2 passes Round Harrow Spring tooth (Kubota) – 1 pass Spring tooth (Kubota) – 2 passes Weed Spraying w/ Boom Sprayer (Kubota) Planter (Cover Crop) Dry Fertilizer/Amendment Application $21 $37 $22 $27 $16 $22 $22 $33 $19 $19 $33 $27 $22 $22 Acre Acre Acre Acre Acre Acre Acre Acre Acre Acre Acre Acre Acre Acre Activities Charged by the Hour (if needed):
The City of Visalia will be billed based on actual hours or acres worked at the above rates.
Activity Rate Per 105 w/ tractor-trailer to drop stakes Backhoe Backpack Sprayer* Bubble tank Chainsaw* Checking Sprinklers w/ van or truck Flat Roller Forklift Gophers Loader w/ Spade Quad / ATV / RTV Scraping Driver Delivery – Equipment Trailer Driver Delivery - Pickup Tractor 105 Kubota Tractor 105 Kubota + Batch Mixer or Bubble Tank Truck + Batch Mixer or Bubble Tank Water Truck Weed Spraying (spot) – Small Tractor (blue) Foreman Oversight (day or nightwatch) $82 $82 $11 $22 $16 $27 $27 $38 $22 $109 $27 $65 $60 $60 $82 $82 $60 $82 $67 $55 Hour Hour Hour Hour Hour Hour Hour Hour Hour Hour Hour Hour Hour Hour Hour Hour Hour Hour Hour Hour A&K Precision Management RFP# 24-25-02 February 5th, 2025 CONFIDENTIAL Page 19
Chemical Applications A&K’s proposed budget includes the following costs for fertilizer, nutrient sprays, soil amendments and chemical (pesticide, herbicide, fungicides and rodenticides) applications: Per Acre Fertilizer, Nutrient Sprays & Soil Amendments Chemicals & Application Equipment Cost Pecans $488 $902 The budget includes the cost of material and application. Included in this section is A&K’s proposed schedule, which outlines by month each application and its budgeted cost. Changes in the acquisition cost of materials (up or down) will result in budget variances, which A&K cannot predict at this time. A&K will not markup the cost of chemicals to the City of Visalia. Canopy Orchard Spraying Per acre rates for canopy orchard spraying (insecticides and nutrients) will be as follows:
Harvesting and Dehydrating A&K’s proposed budget includes the following costs for harvest and post-harvest handling of walnuts and pecans. This is provided for guidance only: A&K will provide guidance and recommendations to the City of Visalia as to harvest strategy. Per Acre Pecans Harvest / Post-Harvest $726 / acre The budget assumes 2,000 lbs/acre of pecans. Actual costs will vary based on actual volume harvested and the number of picks required. The budget assumes 1 pick for pecans. 100 200 250 300 400
MPH
2.00 53.00$ 55.00$ 60.00$ 65.00$ 70.00$
2.50 45.00$ 50.00$ 55.00$ 60.00$ 65.00$
3.00 39.00$ 48.00$ 53.00$ 58.00$ 63.00$ Subtract $2.00 for every increase of 0.5 mph
Add $1.00/acre for sonar sprayer
Application Rate (Gallons per Acre)
Price per Acre
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Billing and Payment A&K proposes billing the City of Visalia based on the following schedule: Date Amount Due 01/01/25 1/12th of Approved Budget 01/31/25 02/01/25 2/12th of Approved Budget Plus Additional Amount Due / (Credit) from Prior Months’ Under / (Over) Billing; Less Amounts Previously Paid 02/28/25 03/01/25 3/12th of Approved Budget Plus Additional Amount Due / (Credit) from Prior Months’ Under / (Over) Billing; Less Amounts Previously Paid 03/31/25 04/01/25 4/12th of Approved Budget Plus Additional Amount Due / (Credit) from Prior Months’ Under / (Over) Billing; Less Amounts Previously Paid 04/30/25 05/01/25 5/12th of Approved Budget Plus Additional Amount Due / (Credit) from Prior Months’ Under / (Over) Billing; Less Amounts Previously Paid 05/31/25 06/01/25 6/12th of Approved Budget Plus Additional Amount Due / (Credit) from Prior Months’ Under / (Over) Billing; Less Amounts Previously Paid 06/30/25 07/01/25 7/12th of Approved Budget Plus Additional Amount Due / (Credit) from Prior Months’ Under / (Over) Billing; Less Amounts Previously Paid 07/31/25 08/01/25 8/12th of Approved Budget Plus Additional Amount Due / (Credit) from Prior Months’ Under / (Over) Billing; Less Amounts Previously Paid 08/31/25 09/01/25 9/12th of Approved Budget Plus Additional Amount Due / (Credit) from Prior Months’ Under / (Over) Billing; Less Amounts Previously Paid 09/30/25 10/01/25 10/12th of Approved Budget Plus Additional Amount Due / (Credit) from Prior Months’ Under / (Over) Billing; Less Amounts Previously Paid 10/31/25 11/01/25 11/12th of Approved Budget Plus Additional Amount Due / (Credit) from Prior Months’ Under / (Over) Billing; Less Amounts Previously Paid 11/30/25 12/01/25 12/12th of Approved Budget Plus Additional Amount Due / (Credit) from Prior Months’ Under / (Over) Billing; Less Amounts Previously Paid 12/31/25
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Payment Terms will be Net 30. Invoices will be accompanied by backup documentation supporting all itemized charges. If the City and A&K agree to modify the approved budget, A&K will modify the monthly invoices accordingly. All invoices will be payable to A&K Precision Management. Reporting On a quarterly basis (following June 1st, September 1st, and December 1st), A&K will provide the City of Visalia with a detailed report comparing actual costs incurred to-date against budget, together with projected costs yet to be incurred over the remainder of the contract period (year), in order to determine whether it will be necessary to adjust the budget for the remainder of the contract period (year). Mr. Rost & Mr. Arroyo will meet with the City of Visalia’s representative, at least once a quarter, to review these progress reports for decision-making purposes. Any adjustment to the budget will be subject to review and approval by the City of Visalia before formal adoption. Following the harvesting of the crops and as soon as practical following the sale of the crops by the post-harvest marketers, A&K will provide the City of Visalia with a profit and loss report for the pecan crop, by block. To assist in these efforts, the City of Visalia will authorize the post-harvest marketers to provide the necessary sales information to A&K, where required.
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(E) CONFLICTS OF INTEREST A&K Precision Management, as a Company, and Mr. Kevin Rost and Mr. Abel Arroyo, individually, hereby do certify that: 1) They do not have any financial, business, or other relationship with the City or any member of City staff that may have an impact on the outcome of the project. 2) They do not have any current clients who has a financial interest in the outcome of the project.
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(F) PERMITS, LICENSES & INSURANCE Insurance certificates for A&K Precision Management will be provided upon successful award.
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(G) ATTACHMENTS: - Pesticide Budget Monthly - Amendment and Fertilizer Budget Monthly - Pathway to profitability A&K Precision Management RFP# 24-25-02 February 5th, 2025 CONFIDENTIAL Page 36
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PROPOSED MANAGEMENT FEE STRUCTURE Provided to City of Visalia From A&K Precision Management Per Acre Per Month (445 acres) Per Acre, 2025 Total Annual $ Farm Management $16.50 $198 $88,110 PCA Consulting Fee $2.00 $24.00 $10,680 TOTAL $18.50 $225 $98,790 The above rates are effective January 1st, 2025. Fees for 2026 and beyond are subject to change based on the lesser of (a) 3.00% and (b) the annual cost of living increase as per the Bureau of Labor Statistics for West Urban Region B/C. Mr. Kevin Rost Mr. Abel Arroyo Owner-Operator Owner-Operator