Council to consider $3.8 million tank maintenance contract; staff touts perpetual warranty and TCEQ compliance

City staff presented a proposal on Jan. 7 for a professional services agreement with Viking Industrial Painting and its affiliate VIP Engineering to provide comprehensive asset management for Killeen’s water storage tanks.

Public Works Director Jeff Reynolds (presenting staff) said Viking assessed all 10 tanks and proposed an ongoing maintenance program that would cover inspections, repairs, repainting and engineering. Viking’s representative, Jason Decker, told the council the company would assume responsibility for future maintenance under an annual fee model: "You pay an annual fee, and for that annual fee, we assume complete responsibility of all the future maintenance of these water tanks," he said. Viking staff described a “perpetual warranty” mechanism in which the company would return to renovate coating failures at no additional cost during the covered service life.

Staff emphasized three points: compliance with Texas Commission on Environmental Quality (TCEQ) and OSHA standards; improved financial planning by shifting predictable work from capital to an operational budget; and protection of roughly $30 million in water‑storage assets the city owns. Reynolds said the first five years reflect higher renovation costs and then drop to a base fee for ongoing maintenance.

Council members asked about operational impacts during work and funding. Reynolds said the city can take tanks offline and reroute water during maintenance and that funds are available in the current budget to cover year‑one and planned future years. Council members praised the presentation and the proactive approach to asset preservation.

Staff recommended the council authorize the city manager to execute a professional services agreement with Viking Industrial Painting for the asset‑management program covering all city water storage tanks, authorizing change orders as allowed by state and local law.