R2023-31 Resolution Authorizing a Water Tank Maintenance Cost Extension with Utility Service Company, Inc., for the Division Street Elevated Water Tank

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2/17/23,8:22 AM Item Coversheet in Public Works DATE: 2/10/2023 MEMO: 2023-17 TO: Honorable Mayor Julie Moore Wolfe and City Council Members FROM: Jon Kindseth,Deputy City Manager Matt Newell,Public Works Director Randy Miller,Water Services Manager SUBJECT: Resolution Authorizing A Water Tank Maintenance Cost Extension with Utility Service Company,Inc.,for the Division Street Elevated Water Tank SUMMARY RECOMMENDATION: Staff recommends that the City Council approve the following: 1.Resolution authorizing a 6-year cost extension of the Water Tank Maintenance Contract for the Division Street Elevated Water Tank with Utility Service Co.,Inc.,a subsidiary of Veolia North America,through December 31,2028. The total fee is $356,551.23. 2.Resolution authorizing a 6-year cost extension of the Water Tank Maintenance Contract for the Garfield Avenue Elevated Water Tank with Utility Service Co.,Inc.,a subsidiary of Veolia North America,through December 31,2028.The total fee is $501,502.14. BACKGROUND: The City owns three elevated steel water tanks: East Garfield Avenue(1,500,000 gallons),West Division Street(1,000,000 gallons),and a composite steel/concrete elevated tank on South Franklin Street Road(1,000,000 gallons). These tanks contain millions of gallons of potable water and are necessary components of the water distribution system for maintaining water pressure, needed water volume during peak water demand and for emergencies such as firefighting water demand. Garfield and Division Water Tanks In 2008,the City entered into long term maintenance agreements with USC for the Garfield and Division elevated water tanks. USC is the nationwide leader of water asset maintenance programs,including water tanks. These agreements with water tank maintenance experts have been very beneficial in improving the overall condition of the City's vital water tank assets. Over the past 13 years,the exterior on both tanks have been painted twice and the interior in each tank have been painted once. Both tanks are inspected every year and the interior of the tanks are chemically cleaned and inspected every 3 years. Back in 2008,both tanks needed significant maintenance and had not been painted since 1990. Water Management staff contacted Utility Service Co.,to submit maintenance contracts for consideration.At the time,Utility Service Co.was the largest water tank service provider in the United States,with approximately 5,000 tanks under contract. City staff contacted several Utility Service Co.customers,all of which reported high satisfaction with their maintenance contracts. The City has greatly benefited by having its elevated water tanks under regular maintenance contracts for all the periodic maintenance and inspection activities that these water tanks require. Franklin Street Water Tank In 2021,the City entered into long term maintenance agreement with USC for the Franklin Street Water Tank.The Franklin Street Elevated Water Tank was constructed in 2011 and is the newest water tank asset in the City's water utility. It was constructed to maintain reliable water pressure to the City's water customers south of Lake Decatur and to add more water storage to the City's water system. The area south of the Lake is in a separate pressure zone than the rest of the City. The Franklin Tank is a critical component of the south water pressure zone which includes Mt.Zion customers and the Fuyao Glass Plant on Elwin Road. The Franklin Street Tank has been in service for 12 years and is still in good condition. https://decatur.novusagenda.com/agendaweb/CoverSheet.aspx?ItemID=4245 1/3