Fairhope council approves $4.1 million cast‑iron replacement; contract amendment for inspections draws criticism

The Fairhope City Council voted to award a $4,107,412 contract for a cast‑iron pipe replacement project and separately approved an amendment to the engineering/inspection contract tied to that project.

Council action matters because the work responds to a federal mandate to replace cast‑iron distribution pipe in Fairhope’s system and involves multi‑million‑dollar spending that will occur over multiple phases.

Councilmembers voted to award the construction contract to GMC Underground for Fairhope Cast Iron Replacement Phase 2, and then approved amendment No. 3 to the city’s engineering/inspection agreement with Magnolia River Services Inc. The amendment adds inspection services for Phase 1 with a not‑to‑exceed amount of $175,832.35, bringing that contract’s new not‑to‑exceed total to $1,890,598.85, as presented to the council.

The two items were discussed together in tonight’s meeting because the inspection work and the construction contract are components of the same multi‑phase infrastructure program. Council members and staff described the overall replacement program as multiyear and long planned; one councilmember said the mandate has been on the city’s horizon for decades.

The inspection amendment was the more contested item. Several councilmembers said they had carefully reviewed time and billing records and raised concerns about how inspection hours were charged on Phase 1. One resident who spoke during public participation urged the council to refuse future bids from the inspection firm, saying, “They lowballed us, and then they gigged us.” Council members said they had audited the invoices “down to the hour” and that staff had met with the firm to clarify expectations going forward.

City staff told the council the inspection firm will be involved in Phase 2 inspections and that the city will competitively bid subsequent phases; there is no contractual guarantee that the firm will perform future phases. Staff also said they would not approve change orders for Phase 2 without clear justification and that any price or scope increases above 10% of a bid amount would require additional bidding.

The council approved both the construction award and the contract amendment. The meeting record shows votes were called and the motions carried; several councilmembers expressed reluctance but ultimately supported the measures so the city can meet the federal replacement schedule.

Implementation details: the construction award covers Phase 2 replacement work with the contractor’s bid not to exceed $4,107,412. The inspection amendment covers services already performed and close‑out activities for Phase 1 and inspection services necessary to proceed into Phase 2; the amendment’s added not‑to‑exceed amount is $175,832.35. Staff said the full cast‑iron program will be multiyear and involve additional phases that will be competitively bid.

Council members and members of the public emphasized two themes: the statutory/mandated nature of the replacement and the need for stronger oversight of inspection and billing practices. The council directed staff to monitor inspection invoices closely and to limit scope or price changes that would exceed statutory or procurement thresholds without rebidding.

The council’s action allows the city to proceed with replacement work this construction season while flagging oversight and procurement controls as follow‑up items for staff and the council.