Item Coversheet

AGENDA MEMO
BUSINESS OF THE CITY COUNCIL
CITY OF FULSHEAR, TEXAS


AGENDA OF:

5/21/2024
 
ITEMS:

IX.C.
DATE SUBMITTED:

4/3/2024
DEPARTMENT:

Public Works
PREPARED BY:
Sharon Valiante, Public Works Director
PRESENTER:
Sharon Valiante, Public Works Director, FNI - Eric Englelskirchen
SUBJECT:   CONSIDERATION AND POSSIBLE ACTION TO APPROVE A PURCHASE FOR HYDRO-PNEUMATIC TANK RENTALS FROM I.K.STOLTZFUS SERVICE CORPORATION WITH A PROJECT BUDGET OF $200,000

Expenditure Required:  Expected FY 24: $110,200 & FY 25: $75,600; combined total $185,800

Amount Budgeted:  Maximum amount within Utility Fund budget $110,200 FY 24 and $75,600 expected FY 25

Funding Account:  500-100-5513-00; 500-100-5511-00 FY 24 & FY 25

Additional Appropriation Required:  $14,200 - Contingency

Funding Account:  500-100-5511-00

EXECUTIVE SUMMARY


City staff utilized FNI to monitor and model the City's water system pressures to assist staff with targeting the area(s) of the City that would benefit from an interim booster using hydro-pneumatic tanks to help preserve the public health and safety of the general public and to help mitigate fluctuations in water pressures during high demand times.  This measure is being recommended to be used while the City's water improvement projects are currently in construction.  

 

FNI presented their findings late March and recommends the City invest in a rental of a hydro-pneumatic tank system that can be temporarily placed at a location near the City's water distribution system, and then connected via a fire hydrant.  

 

Research indicates rental units of water storage tanks with NSF (National Sanitation Foundation) approved coatings, seemingly are only available from a sole vendor, I.K. Stoltzfus Service Corp.  We understand other vendors do not rent tanks of this size and quality.  These tanks are intended for and only used for water storage with NSF approved coatings, while others use refurbished propane tanks that are not recommended for water storage.. (vendor's letter is attached)

There is a menu of set-ups available to the City to consider. 

1 - 25K tank gallon tank

First month $50,000 (set up)

Months 2 –12 =  $4,500 per month ($49,500)

12 month set up & rental = $99,500

 

2. 25K gallon & 1 10K gallon tank

First month = $85,000 set up

Months 2-12 = $6,300 rental ($69,300)

12 month set up & rental = $154,300

 

3. 2 each 10K gallon tanks

First month $70,000
Months 2 – 12 =  $3,600 per month ($39,600)

12 month set up and rental = $109,600

Other items of note:

1. First month cost includes transportation and set up costs and rental.

2. Rental is month to month

3. No lead time for notice to remove

 

At this time, the recommendation by FNI is to purchase menu item No. 2 to begin the installation in May and rented for the rest of FY 24 and possibly all of FY 25.

 

Legal and the City Engineer have reviewed the Agreement presented for consideration. 


RECOMMENDATION


City Council authorize the City Manager to execute an Agreement with I.K. Stoltzfus Service Corp to purchase the installation and rental of hydropneumatic tank(s) with a project budget of $200,000. 

ATTACHMENTS:
DescriptionUpload DateType
Rental Agreemenet5/15/2024Exhibit
Exhibit A Quote5/15/2024Exhibit
Exhibit B Letter5/15/2024Backup Material
TxCert of Filing5/7/2024Backup Material