Council hears plan to lease CO2 tank after vaporizer fire; full replacement estimated at $233,667

City staff told council they found external fire damage on the wastewater plantCO2 vaporizer but that the six‑ton CO2 tank is maintaining pressure and the plant can continue operating. Corey (staff member) said vendors told staff the tank is old and likely should be replaced rather than refurbished.

Tyler (staff member) presented options: a temporary retrofit that replaces the vaporizer and pressure‑relief valves (estimated at $35,480) or leasing a smaller tank from Central MacGallen for about $400–$425 per month on a seven‑year lease. A full tank replacement was estimated at $233,667. Staff said Central MacGallen could deliver and have a lease tank installed as soon as the following week and would perform yearly inspections and maintenance as part of the agreement.

Brad (staff member) said the city has filed a claim with EMC insurance and staff will check whether the event is covered. Council members asked about contract terms, including a provision allowing annual price increases (a clause staff read that caps increases at about 4% per year after the first 12 months) and whether lease arrangements convert to rent‑to‑own; staff said they will confirm the detailed contract language.

Several council members favored the lease option to ensure uninterrupted service while the city builds a replacement reserve and continues capital planning. Tyler said staff will confirm contract details, insurance coverage, and vendor references and return with recommended next steps for formal approval.

The council did not take a final vote at the meeting; staff will follow up with full lease documents and contract terms for council consideration.