Title
Consider a memorandum/resolution approving a professional services agreement with Viking Industrial Painting to provide engineering, renovation and on-going annual maintenance on the City of Killeen’s ten water storage tanks, in the approximate amount of $3,800,000 over five years.
Body
DATE: January 7, 2025
TO: Kent Cagle, City Manager
FROM: Jeffery Reynolds, Executive Director Public Works
SUBJECT: Professional Water Tank Maintenance Program with Viking Industrial Painting to provide engineering, renovation and on-going annual maintenance on ten (10) water tanks
BACKGROUND AND FINDINGS:
On June 13th, 2024, Staff solicited proposals from multiple water tower painting companies for the exterior painting of 4 of the City’s elevated water storage tanks (Airport, Southeast, Bundrandt, and Rodeo).
One of the respondents, Viking Industrial Painting, contacted staff requesting to visit each tank site and look at each tank independently prior to submitting a price. Subsequently, Viking climbed the four tanks and presented a tank assessment report to Public Works and Water & Sewer leadership, detailing the exterior coating conditions, as well as the interior coating and steel condition.
Per request of Staff, Viking followed up the visual assessments with ROV (Remote Operated Vehicle) inspections on the four tanks listed above, as well as all the other water storage tanks in the City’s inventory. Condition reports for each tank were presented to staff in September 2024. Viking also presented an estimate for the exterior painting of the 4 tanks, as was originally requested, at that time.
In addition to the proposal for exterior painting, Viking also presented a multi-stage, multi-year plan addressing all maintenance needs for all 10 storage tanks, which included the exterior painting, interior coatings, and many safety and structural repairs that were revealed to be required as a result of the inspections, including TCEQ requirements.
Over several months, through multiple on-site and virtual meetings, Viking consulted with Public Works Staff to design a comprehensive maintenance program that addressed the specific needs of each water tank in a responsible timeline. Through this process, Viking has continually demonstrated their professionalism, experience, and abilities to design and execute on our annual water tank maintenance needs.
Viking Industrial Painting, through their affiliate VIP Engineering, is a licensed Professional Services Company in the State of Texas. They offer a full asset management program for water storage tanks, which includes annual TCEQ inspections and detailed condition reporting, interior and exterior coating renovations, steel repair as needed, as well as any required engineering to secure mandated permitting through the TCEQ office for each individual project.
Viking’s sole business focus is on municipal water storage tank renovation and on-going maintenance. Viking provides Professional Service/Asset Management of water storage tanks across the United States and has over 300 water tanks under their care.
Viking’s ownership and leadership are active on American Water Works Association (AWWA) Committees dedicated to water tower maintenance standardization and have over 100 years of experience in water tank maintenance, several NACE Certificated Inspection Professionals, lead certifications, certified welders, and a professional engineer.
Viking has provided inspection reports of all Killeen tanks, complete with detailed list of recommended repairs and supporting photo documentation and have consulted with PW Staff on multiple occasions to design a maintenance program that addresses the specific needs of each tank in a responsible timeline.
Current replacement value of assets to be under the care and protection of the Maintenance Program is estimated at $30,000,000.
THE ALTERNATIVES CONSIDERED:
(1) Continue the current approach, deferring maintenance and performing annual TCEQ inspection requirements, leading to reactionary repairs.
(2) Enter a tank maintenance program with Viking Industrial Painting to proactively care for our water storage tanks in the amount of $3,800,000 over five (5) years.
Which alternative is recommended? Why?
Alternative two (2) is recommended to meet the department’s mission to proactively care for the City’s water tanks to reduce overall long-term cost, improve aesthetics, and ensure our stored water continues to be clean and sanitary for the citizens and visitors of Killeen.
CONFORMITY TO CITY POLICY:
Pursuant to Texas Local Government Code (TLGC), section 252.022(a)(4), this item is exempt from the competitive bidding requirements, as it is an agreement for the procurement of processional services.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
$720,194 for fiscal year 2025, and $3,719,110 over the next 5 years.
Is this a one-time or recurring revenue/expenditure?
Recurring
Is this revenue/expenditure budgeted?
Yes, the expenditure is budgeted.
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
Yes, sufficient funding is available in Water & Sewer Fund Capital Outlay/Infrastructure account 350-56415-900-400-925011.
RECOMMENDATION:
Authorize the City Manager, or designee, to execute the Professional Service Water Storage Tank Asset Management agreement with Viking Industrial Painting for all water storage tanks and authorize the City Manager, or designee, to execute any and all change orders allowed by state and local law.
DEPARTMENTAL CLEARANCES:
Public Works
Legal
Finance
ATTACHED SUPPORTING DOCUMENTS:
Agreement
Contract Verification
Certificate of Insurance
Certificate of Interested Parties
Presentation