Nashville's Town Council agreed last week to cancel its water tower maintenance contracts and instead bid the work as needed.
In a memo to council members, Town Manager Randy Lansing said the town has contracts with Utility Service Company, LLC. for annual cleanings, inspections and routine maintenance on its two water towers. The contracts also include repainting the outside of the towers every seven years and the insides once every 15 years. Currently, the contracts go indefinitely but can be cancelled by the town by notifying the company by October 30.
"The contract price is locked in for five-year increments and then is subject to an adjustment "to reflect the current cost of service" but the adjustment is limited to a maximum of 15 percent up or down," Lansing said. "For FY 19-20, the contract's cost is $25,836."
Lansing said with the contracts, it's hard to know if the town is getting a good price on painting or not. Plus, the town is paying for money ahead for future paintings and if the company were to go out of business, the town would be out a substantial amount of money.
"We can put money away each year in the Capital Reserve Fund for the towers' paintings and earn the interest on that money ourselves," Lansing said in the memo. "Also bidding the painting of the towers when needed will ensure we are not paying too much for the water tower painting."
Council members unanimously agreed to Lansing's recommendation to terminate the contracts effective January 7, 2020 and request proposals for annual tank cleanings, inspections and routine maintenance. In addition, council agreed to establish a water tower reserve fund for painting the towers and large dollar amount repairs.