City Contract Change Could Save Dunwoody $3 million over 4 Years

The City of Dunwoody could save more than $3 million over the next four years by adopting new city contacts, according to a recommendation that will be brought to the city council Monday night.

Thursday, a committee made up of four city staff members and three city council members recommended assigning several contracts, for city services to new vendors. The move, the committee concluded, would save the city $3.1 million over four years (the contracts are for three years each, with an option for another year).

“The end result is that we can pave more streets or hire more police officer or spend more money on parks,” said Councilman Robert Wittenstein, a member of the committee.

The city’s contracts with vendors for community development, finance and administration and public works will run out in December.

Earlier this year, the city issued a request for proposals for contractors under a split service model – meaning contracts are bid by department, not the entirety of city services. The process was developed by the city when it was initially created in 2008.

Wittenstein the possible cost savings are proof that the method works.

“For me, this is an absolute model of the value of the model,” he said. “The idea that you have competitive bidding and you have renewals so that once someone wins the business, they still have to compete – it’s the combination of getting good prices and getting good service through the fact if you want to keep the service, you have to re up.”

The major changes recommended include awarding the Public Works and Parks contracts to Clark, Patterson and Lee, who will take the reigns from Lowe Engineers.

“All of us have been very happy with Lowe,” Wittenstein said. “They scored well on our evaluations. The real reason we are switching is the cost savings. Clark Patterson Lee offered the same level of service for a lot less.”

The committee also recommends pulling marketing and information technology out of the larger administrative services contract and awarding each separately.

That, Wittenstein said, takes those services out of the hands of generalized administrative firm and into the hands of firms that specialize in marketing and IT.

Marketing and public relations would be given to Jacobs and IT would be contracted to InterDev.

Wittenstein said that going with a more specialized company gives the city better service. With the marketing firm, for example, Wittenstein said that not only will the contracted vendor employee, but it will also get a handful of hours a week from one of the managing partners in the firm.

“It allows us to get a higher level of service in those two areas,” he said.

The last change recommended isn’t a big overhaul, just a change in places. Currently, two firms are partnered in providing administrative services – JAT and Calvin Giordono. Currently, Giordono is the prime contractor and JAT is the subcontractor. The two companies would switch places under the recommended contract. 

Overall, City Councilmember Doug Thompson, another member of the committee, said this is a win-win.

"The City will receive an increase in service level with a decrease in price," he said. "There are only positives in the awarding of these new contracts."

For vendor employees who have served the city on contracts that aren’t being renewed, the city is urging the new vendors to consider those employees to be considered for the new contracts.

"It is my hope that the new vendors will retain the existing City staff," Thompson said. "The City has wonderful employees and I expect that most will remain with the City."

The contract recommendations will be brought to the city council on Monday night.

The committee was made up of city councilmen Wittenstein, Thompson and Danny Ross, as well as city staff – City Manager Warren Hutmacher, City Clerk Sharon Lowery, Police Chief Billy Grogan and City Finance Director Chris Pike.

The committee has been working on the recommendation since May, setting up a rating system and writing up RFPs.

“This was really a Herculean task on the three council members and also on staff,” Wittenstein said. “I think we were very thorough.”