Title
Authorize the City Manager to finalize and execute Change Order No. 2 to Bid No. 2019-112, Annual Grinding of Brush, with GWG Wood Group, Inc., for an increase in the contract amount of $30,973.32
Body
On October 21, 2019, the City Council approved Bid No. 2019-112, Annual Grinding of Brush, with GWG Wood Group, Inc., in the amount of $247,786.56. Solid Waste exercised the first renewal for this contract on October 21, 2020. On March 31, 2021 the City Manager authorized Change Order No. 1 in the amount of $30,973.32 due to a fuel surcharge requested by the contractor. Change Order No. 2 will allow us to continue to accept and process incoming brush under the existing contract.
The brush grinding performed in this contract converts the brush waste received at the Mesquite Compost Facility into compost and mulch. While this material is available to Mesquite residents at no charge, it is also sold commercially which provides a source of revenue for the City. An overall increase in Municipal Solid Waste, amplified by the pandemic, has put the City on pace for another record year for brush accepted and revenue generated. In Fiscal Year 2021, the compost facility has generated over $450,000.00 of revenue with expectations of exceeding $600,000.00 for the year.
Financial Implications
Change Order No. 2 in the amount of $30,973.32 will allow the City to continue accepting brush and generate an estimated $160,000.00 in additional revenue.
Recommended/Desired Action
Staff recommends approval of Change Order No. 2.
Drafter
Kimberly Baker
Head of Department
Curt J. Cassidy, P.E., CFM