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DEC 1 <br />BOOK. 75 PAGE • 82 <br />COUNTY GROVE FRUIT SALES - BIDS <br />The Board reviewed the following memo dated 12/3/88: <br />DATE: DECEMBER 1, 1988 <br />TO: <br />THRU• <br />FROM: <br />WILLIAM G. COLLINS, II <br />ACTING COUNTY ADMINISTRATOR <br />TERRANCE G. PIN <br />DIRECTOR OF UTILITV'SERVICES <br />JOHN F: LANG dr _' <br />ENVIRONMENT S ECIALIST <br />DEPARTMENT OF UTILITY SERVICES <br />SUBJECT: COUNTY GROVE FRUIT SALES - BIDS <br />BACKGROUND: <br />The Department of Utility Services has a 60 -acre grove located at <br />the West Subregional Wastewater Treatment Plant site. The fruit <br />bids received to date for our red and white grapefruit crop have <br />been slightly more than half of previous offerings. The crop sale <br />has been bid out twice. The last bid generated a single response <br />and that response was from Golden Gem Growers for a bulk price of <br />$34,238.00. The second bidding preempted the first, resulting in a <br />lowering of projected sales revenues. <br />ANALYSIS: <br />The,grove has approximately 12,000 boxes of fruit on the trees this <br />year. The fruit in our grove this season is maturing late. This <br />has affected our bids and has resulted in bids based upon immature <br />fruit as well as the fact that we have included freeze protection <br />clauses in our bids. = =_ <br />The traditional method of sales from a grower to a buyer (either a <br />packer or processor) has been for the grower to assume <br />responsibility for freezes and high winds. There are three possible <br />courses of action, with two options, at this time. They are: <br />1. Accept the $34,238.00 bid from Golden Gem Growers which hasn't <br />any harvest deadline, which may affect next year's crop. <br />2. Rebid - utilizing either Option #1 or Option #2 below. <br />3. Negotiate directly with Golden Gem, utilizing either Option <br />or Option #2. <br />OPTION #1: <br />OPTION #2: <br />#1 <br />Base the sale of the fruit on a per variety, per <br />box basis on the tree, cash, net 30 days, with a <br />harvest deadline and a minimum cash price. <br />Base the sale of the fruit on a per variety, per box <br />basis on the tree with a 50% price rise share for the <br />grower, cash, net 30 days, with a harvest deadline, <br />with or without a guaranteed price. <br />RECOMMENDATION: <br />The Department of Utility Services has bid out the sale of fruit <br />twice. Golden Gem Growers has participated in this process twice <br />and they are the only firm to do so. The staff of the Utilities <br />Department recommends that the Board of County Commissioners <br />authorize direct negotiation with this firm, utilizing Option #2. <br />