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Council OKs $1.5M amendment to T4 ground storage tank contract; funding to be reallocated from bonds
Summary
Kennedale council approved Amendment No. 1 to a storage tank contract, increasing the project to roughly $1.5 million to add turnkey work; council was told the increase is covered by ARPA/2023 bond funds and project timeline remains on track.
The Kennedale City Council unanimously approved Amendment No. 1 March 7 to expand the T4 ground-storage water tank contract into a turnkey package, raising the project cost from the previously quoted manufacturing-only price to about $1.5 million.
Staff said the original bid was for manufacturing only (approximately $996,000) and did not include piping, foundation work, testing and inspection. The single contractor that responded with a competitively lower total price required an amendment to include the construction turnkey scope. Staff told the council that other tank manufacturers had returned higher total estimates nearing $2 million and that pricing for separate foundation and piping contracts would have pushed the total above the amended turnkey price.
Council members questioned whether the higher price reflected a communications breakdown during the original procurement; staff said the contractor bid manufacturing only, expecting the city to manage installation, and later proposed the turnkey amendment when separate bids for piping and foundation were higher.
Finance staff said the additional $560,896 will be covered by existing capital funding: staff proposed moving projects between the city’s 2023 and 2024 bond allocations and using available ARPA funds so the 2024 bond’s language restrictions are respected. Council was told the tank is already in manufacture and approval of the amendment should not delay the expected summer timeline for the tank to be online; staff said construction should take roughly 40–45 days after shipment.
Council approved the amendment unanimously; staff indicated they would share the final contract and provide continuing updates on schedule and warranty terms. Staff said the manufacturing warranty on the tank is long-term (company cited a 25-year manufacturing warranty) while other components carry shorter warranties.
