Memorandum 13-101 Added Funding for Water Treatment Plant Redwood Tank Removal

M E M O R A N D U M  13-101

TO:   Walt Wrede, City Manager
FROM:  Carey Meyer, Public Works Director
DATE:   July 16, 2013
SUBJECT:  Water Treatment Plant Redwood Tank Removal Additional Demolition     Funding Authorization

In April of this year, the City Council authorized the expenditure of $45,000 (Ordinance 13-10(S)) for the demolition of the old redwood tank at the City’s water treatment plant using Water Reserve funds.

The design/bid document preparation for the demolition project is funded through an EPA grant (with City match); authorized by the Council (Resolution 12-062).

During the design of this project it was determined that the roof contains asbestos. The cost of removing and disposing of this hazardous material is estimated to be $60,000. The engineer’s estimate to complete the demolition of this tank is now $114,000.

Public Works has re-evaluated the need to remove this tank, especially in light of the fact that a new satellite fire station is planned near this facility and water storage is needed to fill the tanker that will be stationed at the new fire station. Discussions with the Fire Chief resulted in the determination that the tanker volume is only 2000 gallons and a 500,000 gallon tank would not be needed; maintenance costs would be high. Public Works concludes that this tank is a liability and needs to be removed, even though the cost will be higher than originally anticipated.

Recommendations:  The City Council pass an ordinance amending the 2013 operating budget authorizing additional funding for demolition of the redwood tank using Water Reserve Fund monies in the amount of $69,000 (for a total of $114,000).

Fiscal Note:  256-378 (Water Reserve Fund)