1/28/1997 - Laserfiche WebLink

Home Browse Search

Due to the young age of the Roseland elevated tank, the staff has analyzed and adjusted the maintenance cost of both the historical and proposed, to be the same as the Kings Highway elevated tank. This assumption is based on the similarity of the two elevated tanks (same manufacture, size, physical, operating, and environmental characteristics). With the adjusted cost considered for the Roseland tank and the present method of performing tank maintenance, the adjusted historical yearly average for each tank is as follows: GIFFORD KINGS HIGHWAY ROSELAND TOTAL $19,930.00 / YR $13,009.00 / YR $13009.00 / YR $45,948.00 / YR Under the present method of in-house tank maintenance an escalating cost trend is occuring. This is best seen in the Gifford elevated water storage tank by looking at both the time period between major repairs and the yearly average costs. TIME PERIOD BETWEEN YEARS TOTAL COST DURING YEARLY MAJOR REPAIRS TIME PERIOD AVG COST 1987-1992 1993-1997 6YRS $92,252.00 5 YRS $105,156.00 $15,373.00 $21,031.00 As can be seen by the Gifford elevated tank's data, the time period between major repairs is decreasing while the cost of maintaining the Gifford elevated tank is increasing. To address this trend the staff has put these costs into perspective. The staff has analyzed the ongoing and projected maintenance costs by evaluating the elevated storage tanks over a six year maintenance cycle. With this methodology the proposed average yearly cost for maintaining each of the three tanks would be as follows: GIFFORD $12,578.00 / YR KINGS HIGHWAY $23,855.00 / YR ROSELAND $23.855.00/ YR TOTAL $60,288.00 / YR As shown on each of the three Tank Maintenance Analysis Worksheets, a cost savings to Indian River County could be realized if the proposed six year maintenance cycle were to be contracted out, as is the staff's intention. The average yearly cost for each of the County's three elevated tanks would be as follows: GIFFORD KINGS HIGHWAY ROSELAND TOTAL $11,236.00 / YR $15,275.00/ YR $15275.00/ YR $41,786.00/ YR This would result in an average yearly cost savings of $18,502.00. (60,288.00 minus 41,786.00 = 18,502.00) There are many benefits to using this type of system for tank maintenance. The staff of the Department of Utility Services seeks approval of the three maintenance contracts for the County's three elevated water storage tanks, and approval of the fourth contract for immediate tank repairs to the Gifford tank at a cost of $85,873.00, as was included in the original RFP as a direct price quote. The staff of the Department of Utility Services recommends that the Board of County Commissioners approve and execute the attached contracts with Utility Service Company, Inc. as presented. 55 JANUARY 28, 1997 A