R2008-232 AUTHORIZING THE EXECUTION OF AN AGREEMENT

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DEPARTMENT OF WATER MANAGEMENT Memorandum No. 2008 - 32 December 5, 2008 TO: Honorable Mayor Carrigan and City Co ncil FROM: Ryan P. McCrady, City Manager John A. Smith, Assistant City Manager for Public Services Keith D. Alexander, Director of Water Management jr d �\ SUBJECT: Division Street Water Tank Maintenance Contract SUMMARY RECOMMENDATION: Council adopt the attached Resolution authorizing a Water Tank Maintenance Contract for the Division Street Water Tank with Utility Service Co., Inc. for a fee of $110,007 for the first 5 years of the Contract and $38,584 for years 6 through 8. The Contract can be renewed annually. The total fee for 8 years is $665,787. BACKGROUND: On November 3 Council approved a similar contact for the Garfield Ave. Water Tank. The City owns two large elevated steel water tanks at E. Garfield Ave. and W. Division St. that were constructed in the mid 1950s. Steel tanks require periodic maintenance to keep rust to a minimum and ensure a long service life. The interior and exterior of both tanks were sandblasted and repainted in 1990. In our climate, tank paint typically performs well for 15 to 20 years. A 2007 engineering inspection reported that both tanks are in fair condition and need to be repainted soon to avoid having them sandblasted again before repainting. The benefits of , repainting soon are to: ➢ Ensure the highest quality protection of the steel tanks from corrosion. ' ➢ Ensure that the water stored in the tanks is of the highest possible quality. ➢ Ensure that the substantial additional expense of sandblasting before repainting is avoided. ➢ Ensure that the tanks and logos (currently an outline of the Transfer House) maintain a high quality visual appearance. The tanks also require annual inspections and tri-annual interior cleanings to further protect the quality of the drinking water stored in them. Therefore, in order to consolidate all of the periodic maintenance activities that the tanks require, City staff contacted Utility Service Co. (USC) a firm that has offered water tank maintenance contracts for 23 years, to submit contracts for consideration. USC is the nation's largest water tank service provider, with just under 5,000 tanks currently under contract.