OCEAN CITY – The Mayor and City Council officially approved a beach ball design for the new 1st Street Elevated Water Storage Tank.
A few weeks ago, the Mayor and City Council voted to alter the 1st Street Elevated Water Tank bid package that had already been sent out to add a cost estimate to paint the tower into a beach ball design.
The council’s vote was prompted by the interest of multiple parties, such as the Downtown Association and Jim Motsko of the White Marlin Open, to change the logo that is currently included in the bid package from the “standard logo” that reads “Welcome to Ocean City, Thank You for Visiting Ocean City.” The standard logo can be seen on the 64th Street and 136th Street water tanks.
The council wanted to investigate the current cost of a beach ball design. However, when the idea was first brought up by former Councilman Buck Mann about 20 years ago, the custom paint job alone would have cost the town at least $50,000 at that time.
The town received bids on the 1st Street Elevated Water Storage Tank project on June 23. The lowest responsible bid was tendered by Chicago Bridge and Iron, Inc (CBI). The first option of a paint scheme of the town’s standard logo came to a total cost of $4,919,330, and for option number two of the paint scheme depicting a beach ball was $4,929,330, which was a difference of $10,000.
Public Works Director Hal Adkins recommended to the Mayor and City Council to award the 1st Street Elevated Water Storage Tank project with option two of the beach ball paint scheme to CBI. Funding for the project will be obtained through the sale of Municipal Purpose Bonds this fall. The Mayor and City Council voted unanimously to approve the recommendation.
The construction of the new 1st Street water tank is one piece to a larger plan. Ocean City maintains elevated water towers at 15th Street and Worcester Street. The plan calls for the elimination of each of those towers, and replacing them with a new single water tower at a town-owned property on 1st Street and St. Louis Ave., improving operations and minimizing costs in maintenance.
The removal of the water tank on Worcester Street will provide the town a location for a new municipal parking lot. The removal of the water tank on 15th Street will provide space for the potential expansion of fire headquarters.
The town will execute a contract with CBI in the near future with demolition of Worcester Street tank and construction of the 1st Street tank starting in late August/early September.
In related news, later on the agenda on Monday evening a resolution declaring intent to reimburse expenditures with bond proceeds came before the Mayor and City Council for approval.
According to Finance Administrator Martha Bennett, in compliance with IRS regulations for tax-exempt debt, a resolution is needed to permit the town to be reimbursed from bond proceeds for expenses paid before the bonds are issued.
The town has water and wastewater capital projects totaling $18.2 million, which include the new 1st Street Elevated Water Storage Tank. Also included is about $5.6 million for a Wastewater 4th Secondary Clarifier, about $6.1 for wastewater mains and about $1.2 for wastewater treatment plan electrical service.
The council voted unanimously to approve the resolution.
In February, the Mayor and Council heard a report on the five-year water and wastewater plan. Bennett and Public Works Chief Deputy Director Jim Parsons presented the five-year water and wastewater rate study. The good news was the debt service for capital projects on the town’s water system has decreased, resulting in a reduction in rates for residential and commercial water customers over the next five years.
The bad news, an in-kind increase in the cost of the town’s wastewater system, due largely to the upcoming capital projects, will result in an increase in fees for sewer service over the next five years. The net result will be a slight increase in the overall fees for water and wastewater customers in the resort over the next five years, although Ocean City customers will still pay less than most of the neighbors in the county and around the region, according to the city.