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-2 - <br /> Southern Iowa Rural Water Association (36 tanks). The tanks at Palos Park and Watseka were <br /> also inspected on site by City staff. <br /> Since the Garfield tank is the more important of Decatur's two tanks, a maintenance plan for it <br /> was developed first. Attached is a table prepared by City staff that compares USC's contract <br /> with what the City would do if it undertook all of the Garfield tank maintenance and painting <br /> tasks with separate consulting engineers and contractors. Over the course of the 8 year contract, <br /> USC's present value total cost would be $63,605 higher. However, using a more appropriate <br /> financial analysis, the net present value total cost, USC's contract is only $181 higher, which is <br /> virtually identical to the City's 8 year plan for the tank without a maintenance contract. <br /> It is important to understand what the extra $181 over the course of 8 years would provide to the <br /> City, which is: <br /> ➢ Interior and exterior paint warranties during the life of the contract. Standard contractor <br /> paint warranties only cover one year. <br /> ➢ Emergency and graffiti removal services during the life of the contract. Without a <br /> maintenance contract, the City would have to contract out this work at unknown costs <br /> and response times. <br /> ➢ Significant City staff time and project management savings. USC provides all <br /> engineering and contractor services to maintain the tank during the life of the contract. <br /> Therefore, City staff recommends approval of this water tank maintenance contract with Utility <br /> Service Co., Inc. A separate contract for the Division Street tank is anticipated to be presented to <br /> Council in the near future. <br /> POTENTIAL OBJECTION: <br /> None foreseen. <br /> STAFF REFERENCE: <br /> Keith Alexander, Director of Water Management, phone 424-2863 <br /> email kalexander@decaturil.gov <br /> BUDGET/TIME IMPLICATIONS: <br /> The first year's invoice for the plan will not be due until after the initial renovation and <br /> repainting services are completed by USC, which would be scheduled for mid 2009. Therefore, <br /> the budget for this plan would be included in the FY 2010 Water Services Division operating <br /> budget and the seven fiscal years thereafter. <br />� Attachments , <br />� cc: Bill Murfree, Utilit Service Co., Inc. <br /> Y <br /> Randy Miller, Water Services Manager <br /> Richard Berard, Civil Engineer I <br />� <br />