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Statham staff present value-engineered low bid for Oak Springs spring house replacement
Summary
City staff reported receiving three bids for the Oak Springs spring house project and described $153,528 in value-engineering reductions that produced a revised low bid (staff cited roughly $860,646) and a packet that includes a notice of award and resolution for contract execution.
Statham City staff told the council they received three bids for the Oak Springs spring house replacement after an earlier round drew no responses, and that value engineering reduced the low bid to a revised figure contained in the meeting packet.
"So we have finally procured the bids, for the project," said Greg Bennett, the city's principal engineer with AMI, who summarized the procurement history and said the low bids initially ranged "just over $1,000,000 all the way up to 1,500,000." Bennett said staff worked with the low bidder and the city's engineers to remove or change items that were not central to the project's intent and to avoid contractor markups on specific equipment.
Bennett outlined examples of the value engineering: contracting out tree removal was moved in-house (he cited a $35,000 estimate saved), some fencing was shortened, a loop driveway was simplified to a straight driveway, a generator was deferred for later purchase, and pumps and meters will be purchased directly by the city. He said those changes reduced the cost by about $153,528 and that the revised low bid is shown in the packet submitted to the council.
Staff said the packet also includes an updated budget and a notice of award for the contractor; the notice of award and a resolution to authorize execution of the agreement were cited as the documents that would be signed to provide the contractor with the contract price. The meeting record shows discussion of these items but does not include a verbatim motion awarding the contract on the record in the excerpts provided.
City staff framed the changes as preserving the project's intent while trimming avoidable costs; they did not describe changes that would reduce the treatment or monitoring standards required by regulators. Next steps described by staff included finalizing the notice of award and preparing the contract for signature.
Sources: presentation by Greg Bennett (principal engineer, AMI) at the special called Statham City Council meeting.
