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 Over the last 15 years, it has proven advantageous to have a contract with a dedicated water tank maintenance company that conducts regular inspections by skilled professionals and performs essential maintenance on these vital assets. Key components and benefits of continuing the proposed multi-year maintenance contracts are: • Interior and exterior paint warranties during the life of the contract. Standalone contractor paint warranties generally only cover one year and require experienced and costly project oversight. • Emergency service and graffiti removal during the life of the contract. Without a maintenance contract,the City would have to contract out this work at unknown costs and response times. • Significant City staff and project management savings. Utility Service provides all engineering and contactor services to maintain the tank during the life of the contract. • Ensure quality protection of the steel tank from corrosion through regular painting and inspections. • Ensure the tank and City logo maintain a high quality appearance. • Ensure the water stored in the tank is of highest possible quality. The total cost for the 6-year cost extension for both tanks is$858,053.37 broken down yearly as follows: YEAR Division Tank Garfield Tank Yearly Totals 2023 $54,194.17 $76,226.10 $132,443.27 2024 $54,669.60 $76,894.76 $133,588.36 2025 $56,719.71 $79,778.31 $138,523.02 2026 $62,870.04 $88,428.96 $153,325.00 2027 $62,870.04 $88,428.96 $153,326.00 2028 $65,227.67 $91,745.05 $159,000.72 Total Contract $356,551.23 $501,502.14 $858,053.37 Amount LEGAL REVIEW: Legal approved the original maintenance contracts in 2008. PRIOR COUNCIL ACTION: November 3,2008-Council approved a maintenance contract with Utility Service Co.,Inc. (USC)for the Garfield Avenue Elevated Water Tank at a cost of$858,490.00 December 15,2008-Council approved a maintenance contract with Utility Service Co.,Inc. (USC)for the Division Street Elevated Water Tank at a cost of$665,787.00 June 7,2021 -Council approved a maintenance contract with Utility Service Co.,Inc. (USC)for the Franklin Street Elevated Water Tank at a cost of$735,699.00 POTENTIAL OBJECTIONS: None STAFF REFERENCE: Matt Newell,Public Works Director,Randy Miller,Water Services Manager.Randy and Matt will be in attendance to answer any questions. BUDGET/TIME IMPLICATIONS: The proposed 6-year extensions to the Water Tank Maintenance Contracts for the Division Street and Garfield Avenue elevated water tanks with Utility Service Co.,Inc.are for a fee of$858,053.37. Funding for the 2023 expenditure is budgeted in the FY 2023 Budget and will be planned for future budget years. https:Hdecatur.novusagenda.com/agendaweb/CoverSheet.aspx?ItemID=4245 2/3