HomeMy WebLinkAbout12. PSA ME Simpson
Commission Memorandum
Report To: Honorable Mayor and City Commission
From: Lain Leoniak, Water Conservation Specialist John Alston, Superintendent, Water and Sewer Department
Brian Heaston, Project Engineer
Craig Woolard, Director of Public Works
Subject: Authorize the City Manager to sign a Professional Services Agreement with M.E. Simpson Co., Inc to conduct a Utility Water Loss Control Survey-Audit pursuant to the AWWA
Manual of Water Supply Practices M36 Third Edition for the City of Bozeman, Department of
Public Works.
Meeting Date: October 6, 2014
Agenda Item Type: Consent Item
Recommendation: Authorize the City Manager to sign a Professional Services Agreement with M.E. Simpson Co., Inc to conduct a Utility Water Loss Control Survey-Audit pursuant to the AWWA Manual of Water Supply Practices M36 Third Edition for the City of Bozeman,
Department of Public Works.
Background: The City requires an engineering and consulting firm with expertise in conducting a water loss control survey-audit to evaluate water losses in the city’s water utility. The evaluation includes but is not limited to validation of existing water loss data compiled by
the City staff which enables the City to conduct future annual water loss control audits in
subsequent years. The water loss audit advances utility management objectives of the Water
Conservation Program. The information obtained from this survey-audit will be used to identify the amount of overall
losses within the water utility and to make recommendations as to the means in which to control
water loss.
Four quotes were obtained from qualified firms and after staff review, M.E. Simpson Co. was selected due to the fact that they have extensive expertise in conducting water loss control audit-
surveys in a variety of metropolitan areas nationwide. M.E. Simpson Co., Inc., is also able to
facilitate the necessary skills transfer during this audit process to allow City staff to conduct
water loss control audits annually hereafter.
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A detailed project scope is provided as an attachment to the Professional Services Agreement.
Alternatives: As suggested by the Commission.
Fiscal Effects: Total project costs to the Water Conservation Program shall not exceed $17,900.
Attachments: Professional Services Agreement and Scope of Services
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PROFESSIONAL SERVICES AGREEMENT
THIS AGREEMENT is made and entered into this ____ day of October, 2014, by and
between the CITY OF BOZEMAN, MONTANA, a self governing municipal corporation
organized and existing under its Charter and the laws of the State of Montana, 121 North Rouse
Street, Bozeman, Montana, with a mailing address of PO Box 1230, Bozeman, MT 59771,
hereinafter referred to as “City,” and, M.E. Simpson Co., Inc., 3406 Enterprise Ave. Valpraiso,
Indiana 46383, hereinafter referred to as “Contractor.”
In consideration of the mutual covenants and agreements herein contained, the receipt and
sufficiency whereof being hereby acknowledged, the parties hereto agree as follows:
1. Purpose: City agrees to enter this Agreement with Contractor to perform for City
services described in the Scope of Services attached hereto as Attachment “A” and by this reference
made a part hereof.
2. Term/Effective Date: This Agreement is effective upon the date of its execution
and will terminate on the 31st day of December, 2014.
3. Scope of Work: Contractor will perform the work and provide the services in
accordance with the requirements of the Scope of Services. For conflicts between this Agreement
and the Scope of Services, unless specifically provided otherwise, the Agreement governs.
4. Payment: City agrees to pay Contractor the amount specified in the Scope of
Services set forth in Attachment A incorporated herein by this reference. Any alteration or
deviation from the described services that involves additional costs above the Agreement amount
will be performed by Contractor after written request by the City, and will become an additional
charge over and above the amount listed in the Scope of Services. The City must agree in writing
upon any additional charges.
5. Contractor’s Representations: To induce City to enter into this Agreement,
Contractor makes the following representations:
a. Contractor has familiarized itself with the nature and extent of this Agreement, the
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Scope of Services, and with all local conditions and federal, state and local laws, ordinances, rules,
and regulations that in any manner may affect cost, progress or performance of the Scope of
Services.
b. Contractor represents and warrants to City that it has the experience and ability to
perform the services required by this Agreement; that it will perform said services in a professional,
competent and timely manner and with diligence and skill; that it has the power to enter into and
perform this Agreement and grant the rights granted in it; and that its performance of this
Agreement shall not infringe upon or violate the rights of any third party, whether rights of
copyright, trademark, privacy, publicity, libel, slander or any other rights of any nature whatsoever,
or violate any federal, state and municipal laws. The City will not determine or exercise control as
to general procedures or formats necessary to have these services meet this warranty.
c. Contractor represents and warrants it has the organizational capacity to keep
information regarding the City’s water customers confidential as required by Section 17.
6. Independent Contractor Status/Labor Relations: The parties agree that
Contractor is an independent contractor for purposes of this Agreement and is not to be considered
an employee of the City for any purpose. Contractor is not subject to the terms and provisions of
the City’s personnel policies handbook and may not be considered a City employee for workers’
compensation or any other purpose. Contractor is not authorized to represent the City or otherwise
bind the City in any dealings between Contractor and any third parties.
Contractor shall comply with the applicable requirements of the Workers’ Compensation
Act, Title 39, Chapter 71, MCA, and the Occupational Disease Act of Montana, Title 39, Chapter
71, MCA. Contractor shall maintain workers’ compensation coverage for all members and
employees of Contractor’s business, except for those members who are exempted by law.
Contractor shall furnish the City with copies showing one of the following: (1) a binder for
workers’ compensation coverage by an insurer licensed and authorized to provide workers’
compensation insurance in the State of Montana; or (2) proof of exemption from workers’
compensation granted by law for independent contractors.
Contractor shall indemnify, defend, and hold the City harmless from any and all claims,
demands, costs, expenses, damages, and liabilities arising out of, resulting from, or occurring in
connection with any labor problems or disputes or any delays or stoppages of work associated with
such problems or disputes.
7. Indemnity/Waiver of Claims/Insurance: For other than professional services
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rendered, to the fullest extent permitted by law, Contractor agrees to release, defend, indemnify, and
hold harmless the City, its agents, representatives, employees, and officers (collectively referred to
for purposes of this Section as the City) from and against any and all claims, demands, actions, fees
and costs (including attorney’s fees and the costs and fees of and expert witness and consultants),
losses, expenses, liabilities (including liability where activity is inherently or intrinsically
dangerous) or damages of whatever kind or nature connected therewith and without limit and
without regard to the cause or causes thereof or the negligence of any party or parties that may be
asserted against, recovered from or suffered by the City occasioned by, growing or arising out of or
resulting from or in any way related to: (i) the negligent, reckless, or intentional misconduct of the
Contractor; (ii) any negligent, reckless, or intentional misconduct of any of the Contractor’s agents;
or (iii) the negligent, reckless, or intentional misconduct of any other third party.
For the professional services rendered, to the fullest extent permitted by law, Contractor
agrees to indemnify and hold the City harmless against claims, demands, suits, damages, losses, and
expenses, including reasonable defense attorney fees, to the extent caused by the negligence or
willful misconduct of the Contractor or Contractor’s agents or employees.
Such obligations shall not be construed to negate, abridge, or reduce other rights or
obligations of indemnity that would otherwise exist. The indemnification obligations of this Section
must not be construed to negate, abridge, or reduce any common-law or statutory rights of the
indemnitee(s) which would otherwise exist as to such indemnitee(s).
Contractor’s indemnity under this Section shall be without regard to and without any right to
contribution from any insurance maintained by City.
Should any indemnitee described herein be required to bring an action against the Contractor
to assert its right to defense or indemnification under this Agreement or under the Contractor’s
applicable insurance policies required below the indemnitee shall be entitled to recover reasonable
costs and attorney fees incurred in asserting its right to indemnification or defense but only if a
court of competent jurisdiction determines the Contractor was obligated to defend the claim(s) or
was obligated to indemnify the indemnitee for a claim(s) or any portion(s) thereof.
In the event of an action filed against City resulting from the City’s performance under this
Agreement, the City may elect to represent itself and incur all costs and expenses of suit.
Contractor also waives any and all claims and recourse against the City or its officers, agents
or employees, including the right of contribution for loss or damage to person or property arising
from, growing out of, or in any way connected with or incident to the performance of this
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Agreement except “responsibility for his own fraud, for willful injury to the person or property of
another, or for violation of law, whether willful or negligent” as per 28-2-702, MCA.
These obligations shall survive termination of this Agreement and the services performed
hereunder.
In addition to and independent from the above, Contractor shall at Contractor’s expense
secure insurance coverage through an insurance company or companies duly licensed and
authorized to conduct insurance business in Montana which insures the liabilities and obligations
specifically assumed by the Contractor in this Section. The insurance coverage shall not contain any
exclusion for liabilities specifically assumed by the Contractor in subsection (a) of this Section.
The insurance shall cover and apply to all claims, demands, suits, damages, losses, and
expenses that may be asserted or claimed against, recovered from, or suffered by the City without
limit and without regard to the cause therefore and which is acceptable to the City and Contractor
shall furnish to the City an accompanying certificate of insurance and accompanying endorsements
in amounts not less than as follows:
• Workers’ Compensation – statutory;
• Employers’ Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate;
• Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual
aggregate;
• Automobile Liability - $1,000,000 property damage/bodily injury; $2,000,000
annual aggregate; and
• Professional Liability - $1,000,000 per claim; $2,000,000 annual aggregate.
The above amounts shall be exclusive of defense costs. The City of Bozeman, its officers,
agents, and employees, shall be endorsed as an additional or named insured on a primary non-
contributory basis on both the Commercial General and Automobile Liability policies. The
insurance and required endorsements must be in a form suitable to City and shall include no less
than a sixty (60) day notice of cancellation or non-renewal. The City must approve all insurance
coverage and endorsements prior to the Contractor commencing work. Contractor shall notify City
within two (2) business days of Contractor’s receipt of notice that any required insurance coverage
will be terminated or Contractor’s decision to terminate any required insurance coverage for any
reason.
The City must approve all insurance coverage and endorsements prior to the
Contractor commencing work.
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8. Termination for Contractor’s Fault:
a. If Contractor refuses or fails to timely do the work, or any part thereof, or
fails to perform any of its obligations under this Agreement, or otherwise breaches any terms
or conditions of this Agreement, the City may, by written notice, terminate this Agreement
and the Contractor’s right to proceed with all or any part of the work (“Termination Notice
Due to Contractor’s Fault”). The City may then take over the work and complete it, either
with its own resources or by re-letting the contract to any other third party.
b. In the event of a termination pursuant to this Section 8, Contractor shall be
entitled to payment only for those services Contractor actually rendered.
c. Any termination provided for by this Section 8 shall be in addition to any
other remedies to which the City may be entitled under the law or at equity.
d. In the event of termination under this Section 8, Contractor shall, under no
circumstances, be entitled to claim or recover consequential, special, punitive, lost business
opportunity, lost productivity, field office overhead, general conditions costs, or lost profits
damages of any nature arising, or claimed to have arisen, as a result of the termination.
9. Termination for City’s Convenience:
a. Should conditions arise which, in the sole opinion and discretion of the City,
make it advisable to the City to cease performance under this Agreement City may terminate
this Agreement by written notice to Contractor (“Notice of Termination for City’s
Convenience”). The termination shall be effective in the manner specified in the Notice of
Termination for City’s Convenience and shall be without prejudice to any claims that the
City may otherwise have against Contractor.
b. Upon receipt of the Notice of Termination for City’s Convenience, unless
otherwise directed in the Notice, the Contractor shall immediately cease performance under
this Agreement and make every reasonable effort to refrain from continuing work, incurring
additional expenses or costs under this Agreement and shall immediately cancel all existing
orders or contracts upon terms satisfactory to the City. Contractor shall do only such work
as may be necessary to preserve, protect, and maintain work already completed or
immediately in progress.
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c. In the event of a termination pursuant to this Section 13, Contractor is
entitled to payment only for those services Contractor actually rendered on or before the
receipt of the Notice of Termination for City’s Convenience.
d. The compensation described in Section 13(c) is the sole compensation due to
Contractor for its performance of this Agreement. Contractor shall, under no circumstances,
be entitled to claim or recover consequential, special, punitive, lost business opportunity,
lost productivity, field office overhead, general conditions costs, or lost profits damages of
any nature arising, or claimed to have arisen, as a result of the termination.
10. Limitation on Contractor’s Damages; Time for Asserting Claim:
a. In the event of a claim for damages by Contractor under this Agreement,
Contractor’s damages shall be limited to contract damages and Contractor hereby expressly
waives any right to claim or recover consequential, special, punitive, lost business
opportunity, lost productivity, field office overhead, general conditions costs, or lost profits
damages of any nature or kind.
b. In the event Contractor wants to assert a claim for damages of any kind or
nature, Contractor shall provide City with written notice of its claim, the facts and
circumstances surrounding and giving rise to the claim, and the total amount of damages
sought by the claim, within ten (10) days of the facts and circumstances giving rise to the
claim. In the event Contractor fails to provide such notice, Contractor shall waive all rights
to assert such claim.
11. Representatives:
a. City’s Representative: The City’s Representative for the purpose of this
Agreement shall be Lain Leoniak, (Water Conservation Specialist) or such other individual
as City shall designate in writing. Whenever approval or authorization from or
communication or submission to City is required by this Agreement, such communication or
submission shall be directed to Lain Leoniak as the City’s Representative and approvals or
authorizations shall be issued only by such Representative; provided, however, that in
exigent circumstances when City’s Representative is not available, Contractor may direct its
communication or submission to other designated City personnel or agents as listed above
and may receive approvals or authorization from such persons.
b. Contractor’s Representative: The Contractor’s Representative for the
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purpose of this Agreement shall be Michael Simpson (Chief Executive Officer) or such
other individual as Contractor shall designate in writing. Whenever direction to or
communication with Contractor is required by this Agreement, such direction or
communication shall be directed to Contractor’s Representative; provided, however, that in
exigent circumstances when Contractor’s Representative is not available, City may direct its
direction or communication to other designated Contractor personnel or agents.
12. Permits: Contractor shall provide all notices, comply with all applicable laws,
ordinances, rules, and regulations, obtain all necessary permits, licenses, including a City of
Bozeman business license, and inspections from applicable governmental authorities, and pay all
fees and charges in connection therewith.
13 Laws and Regulations: Contractor shall comply fully with all applicable state and
federal laws, regulations, and municipal ordinances including, but not limited to, all workers’
compensation laws, all environmental laws including, but not limited to, the generation and disposal
of hazardous waste, the Occupational Safety and Health Act (OSHA), the safety rules, codes, and
provisions of the Montana Safety Act in Title 50, Chapter 71, MCA, all applicable City, County,
and State building and electrical codes, the Americans with Disabilities Act, and all non-
discrimination, affirmative action, and utilization of minority and small business statutes and
regulations.
14. Nondiscrimination: The Contractor will have a policy to provide equal
employment opportunity in accordance with all applicable state and federal anti-discrimination
laws, regulations, and contracts. The Contractor will not refuse employment to a person, bar a
person from employment, or discriminate against a person in compensation or in a term, condition,
or privilege of employment because of race, color, religion, creed, political ideas, sex, age, marital
status, national origin, actual or perceived sexual orientation, gender identity, physical or mental
disability, except when the reasonable demands of the position require an age, physical or mental
disability, marital status or sex distinction. The Contractor shall be subject to and comply with Title
VI of the Civil Rights Act of 1964; Section 140, Title 2, United States Code, and all regulations
promulgated thereunder. The Contractor shall require these nondiscrimination terms of its sub-
Contractors providing services under this agreement.
15. Intoxicants; DOT Drug and Alcohol Regulations/Safety and Training:
Contractor shall not permit or suffer the introduction or use of any intoxicants, including alcohol or
illegal drugs, by any employee or agent engaged in services to the City under this Agreement while
on City property or in the performance of any activities under this Agreement. Contractor
acknowledges it is aware of and shall comply with its responsibilities and obligations under the U.S.
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Department of Transportation (DOT) regulations governing anti-drug and alcohol misuse
prevention plans and related testing. City shall have the right to request proof of such compliance
and Contractor shall be obligated to furnish such proof.
The Contractor shall be responsible for instructing and training the Contractor's employees
and agents in proper and specified work methods and procedures. The Contractor shall provide
continuous inspection and supervision of the work performed. The Contractor is responsible for
instructing his employees and agents in safe work practices.
16. Modification and Assignability: This Agreement may not be enlarged, modified or
altered except by written agreement signed by both parties hereto. The Contractor may not
subcontract or assign Contractor’s rights, including the right to compensation or duties arising
hereunder, without the prior written consent of City. Any subcontractor or assignee will be bound
by all of the terms and conditions of this Agreement.
17. Reports/Accountability/Public Information/Confidentiality: Contractor agrees to
develop and/or provide documentation as requested by the City demonstrating Contractor’s
compliance with the requirements of this Agreement. Contractor shall allow the City, its auditors,
and other persons authorized by the City to inspect and copy its books and records for the purpose
of verifying that the reimbursement of monies distributed to Contractor pursuant to this Agreement
was used in compliance with this Agreement and all applicable provisions of federal, state, and
local law. The Contractor shall not issue any statements, releases or information for public
dissemination without prior approval of the City.
Contractor shall not share, sell, transmit or use for any purpose other than as authorized in
this Agreement any information related to City’s rate payer including but not limited to names,
phone numbers, address, water usage, etc, shall comply with the provisions of Sect. 2-6-109, MCA,
and shall keep all such information confidential except as to the City. In addition, Contractor shall
not disseminate or use for its own purposes the results of the survey.
18. Non-Waiver: A waiver by either party any default or breach by the other party of
any terms or conditions of this Agreement does not limit the other party’s right to enforce such term
or conditions or to pursue any available legal or equitable rights in the event of any subsequent
default or breach.
19. Attorney’s Fees and Costs: That in the event it becomes necessary for either Party
of this Agreement to retain an attorney to enforce any of the terms or conditions of this Agreement
or to give any notice required herein, then the prevailing Party or the Party giving notice shall be
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entitled to reasonable attorney's fees and costs, including fees, salary, and costs of in-house counsel
to include City Attorney.
20. Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all
appropriate employee withholdings.
21. Dispute Resolution:
a. Any claim, controversy, or dispute between the parties, their agents,
employees, or representatives shall be resolved first by negotiation between senior-level
personnel from each party duly authorized to execute settlement agreements. Upon mutual
agreement of the parties, the parties may invite an independent, disinterested mediator to
assist in the negotiated settlement discussions.
b. If the parties are unable to resolve the dispute within thirty (30) days from the
date the dispute was first raised, then such dispute may only be resolved in a court of
competent jurisdiction in compliance with the Applicable Law provisions of this Agreement.
22. Survival: Contractor’s indemnification shall survive the termination or expiration of
this Agreement for the maximum period allowed under applicable law.
23. Headings: The headings used in this Agreement are for convenience only and are
not be construed as a part of the Agreement or as a limitation on the scope of the particular
paragraphs to which they refer.
24. Severability: If any portion of this Agreement is held to be void or unenforceable,
the balance thereof shall continue in effect.
25. Applicable Law: The parties agree that this Agreement is governed in all respects
by the laws of the State of Montana.
26. Binding Effect: This Agreement is binding upon and inures to the benefit of the
heirs, legal representatives, successors, and assigns of the parties.
27. No Third-Party Beneficiary: This Agreement is for the exclusive benefit of the
parties, does not constitute a third-party beneficiary agreement, and may not be relied upon or
enforced by a third party.
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28. Counterparts: This Agreement may be executed in counterparts, which together
constitute one instrument.
29. Integration: This Agreement and all Exhibits attached hereto constitute the entire
agreement of the parties. Covenants or representations not contained therein or made a part thereof
by reference, are not binding upon the parties. There are no understandings between the parties
other than as set forth in this Agreement. All communications, either verbal or written, made prior
to the date of this Agreement are hereby abrogated and withdrawn unless specifically made a part of
this Agreement by reference.
IN WITNESS WHEREOF, the parties hereto have executed this instrument the day and
year first above written.
CITY OF BOZEMAN, MONTANA M.E. Simpson Co., Inc.
CONTRACTOR
By________________________________ By__________________________________
Chris Kukulski, City Manager Michael D. Simpson, CEO
APPROVED AS TO FORM:
By_______________________________
Greg Sullivan, Bozeman City Attorney
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ATTACHMENT A
Scope of Services
ME Simpson Co., Inc., Utility Water Loss Control Survey-Audit Project
I. Introduction
This document outlines the tasks to be completed by ME Simpson Co., Inc.,
(hereinafter “Contractor”) for the Utility Water Loss Control Survey-Audit Project for
the City of Bozeman, Department of Public Works (hereinafter “City”), 20 East Olive
Street Bozeman, Montana 59715.
II. Description
The City requires an engineering and consulting firm with expertise in conducting a
water loss control survey-audit in order to develop a robust water loss control
program for the City (hereinafter “audit”) which includes but is not limited to
validation of the City’s data to enable the City to conduct annual water loss control
audits in subsequent years using available software and component analysis modeling
programs.
The information obtained from this survey-audit will be utilized to identify the
amount of overall losses within the water distribution system, where those losses are
occurring and make recommendations as to the means in which to control system
water loss.
The project comprises multiple phases that include a combination of services
designed to assist the City in improving water accountability and optimizing the
City’s distribution system’s operational performance.
Once a Professional Services Agreement is in place, the City, at its discretion, will authorize
individual tasks and/or sub-tasks. The Contractor shall prepare a Work Plan and schedule for
each task or sub-task which will be submitted to the City prior to beginning work.
III. Scope of Services
The scope of services is intended to provide important information regarding the City
of Bozeman’s water distribution system.
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The survey-audit project is to be of such a quality that the same data and processes
developed and applied in this project can be used in subsequent years to enable the
City to track utility water losses.
Any information provided to Contractor and Contractor’s agents shall not be sold,
transmitted or used for any purpose by Contractor or Contractor’s agents other than
for the purpose of conducting the survey-audit project.
The survey-audit project shall be completed prior to December 31, 2014.
All raw data generated as a result of the survey shall be provided to the City and in
electronic format that allows for the City’s future use and distribution.
Contractor’s analysis of the survey-audit results shall be provided in the form of a
report that allows for future use and distribution.
There will be a minimum of three site visits by Contractor at key points throughout the
project. These site visits are to be coordinated between City and Contractor.
Total project costs shall not exceed: $17,900.00
Task One: Determine Survey Inputs
The first phase of the water loss control survey-audit is to evaluate the City’s water
production through the master water meters to insure the input into the system has been accurately documented.
A. Record Review
All master meter production data for the selected audit period will be reviewed along with an examination of any past master meter test results. This may include any
reports periodically submitted to the state’s regulatory agencies or regional water
authorities. Total pumpage amounts for the audit period will need to be determined
along with the marginal costs of water production.
B. Master Meter Evaluation
Part of the first task includes evaluations of the City’s master water meters to insure
all the meters are in compliance with AWWA standards for water meters. All master
meters would be evaluated in accordance with American Water Works Association standards (reference AWWA M6 and M33 Manuals).
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C. Evaluations
The Project Team will assess all master meter sites. The settings will be analyzed to
determine meter layout. This site assessment will be done prior to any data review so that factors possibly affecting meter accuracy can be determined.
• Schedule evaluations with the City during normal working hours. Exceptions to
evaluation times will be made on a case-by-case basis, depending on accessibility
to the meter.
• Past meter test flow data will be examined, if available.
• Production data for at least 12 months will be trended, and if available, the last 36
months as well.
Task Two: Determine Authorized Consumption
All studies and reports on previous water loss for the utility will be reviewed with the
goal of refining and updating previous techniques. The Project Team will also carry
out a detailed review of current water loss practices to identify cost effective loss
reduction strategies. A brief review of the accounting and billing system is also imperative for this phase of the program the following items must be thoroughly researched and quantified for the 12 month audit period:
• Billed Metered Water
• Billed Unmetered Water
• Unbilled Metered Water
• Unbilled Unmetered Water
A. Billed Metered Water
The meter accounting and billing evaluation may help locate inconsistencies within the
accounting, meter reading and billing cycles, identify problems resulting from inaccurate
reading or recording of the individual accounts of metered water and to identify possible
potential meter accuracy problems. The evaluation will allow the development of cost effective recommendations for the correction of the problems located.
Select information for various meter accounts and the historical consumption for at
least 12 months of time (typical audit period of one year) will be requested from the City’s utility database. This information will be imported to the Project Team’s program for review and evaluation. The type of information maintained in the City’s
utility database will determine the depth of our evaluation.
The following consumption evaluation will be performed on the data that is available.
• Perform analysis of pumped finished water versus billed water
• Review of your account billing cycles, procedures and practices.
• Review of your account meter reading cycles.
• Review of you account meter reading procedures and practices.
• Consumption patterns and trends are developed to locate decreasing or erratic
historical use.
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• Usage patterns of meters by sizes are reviewed.
• An evaluation of revenue is performed. B. Billed Unmetered Water
All account information regarding unmetered water that is billed such as possible bulk
sales, estimated consumptions, fire service water used, etc., will be evaluated.
C. Unbilled Metered Water
Water used by municipal buildings or departments that is metered but for some reason is
not billed such as park departments, pools, schools, government buildings, etc., will be
evaluated. This water may very well be tracked as far as consumption is concerned but no
revenue is generated from its use. Hence, this would be termed as a part of “Non-
Revenue Water”.
D. Unbilled Unmetered Water
Water use in this area is usually hard to predict and sometimes tough to estimate. It could be used for seasonal hydrant flushing, fire system flushing, street cleaning, and fire
suppression. Theft of water, however, is not part of this. It is covered under unauthorized
consumption. Unbilled Unmetered Water is part of “Non- Revenue Water” and the utility
is not gaining an income from it. The account review can sometimes uncover accounts
not being billed properly.
Once the Authorized Consumption has been totaled, it can be subtracted from Water
Supplied to yield the water loss totals. The water loss total can be split into Apparent
Losses and Real Losses.
Task Three: Determine Apparent Losses
Apparent losses will be calculated by gathering data from the utility on unauthorized use,
calculating meter inaccuracies, and identification of potential data handling errors for the
above task of record review. Unauthorized use is a tough area to determine and requires
some estimates to be made. However, reviewing customer service requests and reporting
of open hydrants, et al will help validate this information. The use of the City’s GIS system (if available) will contribute greatly to helping accomplish this task.
A. Commercial–Industrial Meter Accuracy Levels
In order to validate corrected consumption for the audit, the large commercial/industrial meter accuracies need to be verified. Since the majority of water use occurs through these
meters, this is a necessary task. Statistically significant random sampling (95 %
confidence) can be used to select meters by age, size and types for review. The Project
Team will evaluate through the billing and accounting processes, the 1-1/2” and larger
commercial / industrial water meters for right sizing, performance and accountability. We will review accounting, billing and reading practices with the goal of increasing revenues
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and improving accountability. Meters that may have been tested for accuracy in the field
will have the test results evaluated and the weighted results of the tests can be applied to
the Apparent Losses. 12 months of totalized meter data will be needed for the audit
period.
B. Small Commercial/Residential Meter Accuracy Levels
In order to validate corrected consumption for the audit, the small commercial –
residential meter accuracies need to be verified. While these meters may not individually be a big cause of water loss, cumulatively they can be. Therefore, it is a necessary
activity. Statistically significant random sampling (95 % confidence) can be used to
select meters by age, size and types for review. The Project Team will evaluate selected
information for 5/8” through 1” water meters for performance and accountability.
Contractor will review accounting, billing and reading practices with the goal of increasing revenues and improving accountability. Meters that may have been tested for
accuracy in the field will have the test results evaluated and the weighted results of the
tests will be applied to the Apparent Losses.
In order to complete Task Three, the City shall furnish to Contractor:
• All records necessary to properly conduct the evaluation program.
• Customer records such as the 12 month consumption history, meter sizes, meter
types or any additional information that would make the meter evaluation easier to perform. This information shall be regarded as confidential and will not be shared with anyone outside of the City without consent of the City.
• On a reasonable but periodic basis, certain City personnel with a working
knowledge of the water system who may be helpful in the identification of
particular issues and for general information about the water system. This person(s) will not need to assist the Project Team on a full time basis, but only on
an “as needed” basis.
Systematic data handling issues will also be looked at from the previous evaluation of the
billing and accounting processes. It may be prudent to trace particular accounts through
the reading process to the billing process to locate potential points of data failure. Once the above tasks have been completed, the total Apparent Losses will be calculated.
Task Four : Determine Real Losses:
Once the Authorized Consumption has been determined and validated, the calculated Apparent losses derived, and then Real losses can be calculated. This will be done by subtracting the Apparent Losses from the Total Losses to yield Real Losses. The Real
loses can be validated as well by conducting an evaluation and review of the current leak
detection methods employed by the Utility. Real losses are defined as water lost to actual
leakage.
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Task Five: AWWA Water Audit Spreadsheet
The last task is to prepare a Water Audit using the AWWA Water Audit Software.
Contractor inputs the information and data gathered in tasks 1-4 into the AWWA spreadsheet-based water audit tool. This software is design to help quantify and track water losses associated with water distribution systems and the areas for improved
efficiency and cost recovery.
Non-Revenue Water
Non-Revenue water will be calculated indicating the amounts of water not generating
revenue. Non-Revenue water can be calculated by adding the total water loss to unbilled
metered water plus the unbilled unmetered water.
Performance Indicators
Certain cost data will be gathered from the City to help calculate the Performance
Indicators. These indicators are made up of Financial Indicators and Operational
Efficiency Indicators. The financial indicators will indicate how much revenue is lost due to Apparent losses
(metering, billing, accounting issues) and Real losses (leakage in the system). By
categorizing these losses, the amount of potential recovery for each area is identified to
help plan for particular remediation techniques. An important aspect of the Real loss calculation will be the Unavoidable Real Losses.
These are losses that occur even in the best run water systems. The calculation of
Unavoidable Losses is done by applying a theoretical formula comprised of total water
main lengths, lengths of service connections, number of service connections and system pressure. By dividing the Current Annual Real Losses by the Unavoidable Real Losses, the ILI, or Infrastructure Leakage Index is calculated. This ratio performance indicator is
used for comparison of one water system to another. This ILI level will help the Utility
and Project Team decide on a strategy of where and how much money may need to be
spent for remediation. ILI ratios are based on the current conditions of the water system and reflect the characteristics of the system and relate water resources to financial considerations as related to operational considerations.
Other indicators such as the Apparent losses per connection per day, Real losses per mile
of pipe per day, Real losses per service connection per day, and Real losses per meter (head) pressure per day, will be calculated.
While the Audit Spreadsheet is being filled out, validity scores will be assigned to
segments of the data. This is done to provide a basis of understanding of how robust the
data from the utility is. The data validity score is a useful tool in helping determine areas of remediation in record keeping for a water utility. It also acts as a tool for “self-evaluation” to insure data integrity.
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Task Six: Recommendations for Economically Viable Water Loss Intervention
Programs The AWWA Spreadsheet has “built in” generalized suggestions of system improvements
based on the scoring system (“ILI” or Infrastructure Leakage Indicator and confidence
level of data used) that can help direct long term programs. However, following the
completion of the Water Audit Spreadsheet and the results of the previous tasks, the Contractor’s Project Team will develop a detailed prioritized set of recommendations on
cost effective ways to continue to identify and remediate Apparent and Real Losses.
Each suggested task for water loss reduction may encompass details as to length of time
to implement, cost to the City, expected return on investment (ROI), frequency of suggested maintenance and/or replacement programs such as leak surveys, and meter
testing/repair/replacements. Major CIP programs may be identified as well such as main
replacements, implementation of an AMR system, or any other long term program that
may be considered.
Task Seven: Review and Recommend Data for WRF/EPA Model
Contractor shall assist the City in its attempt to use/insert the information gathered and
evaluated by the Water Loss Control Software into the WRF/EPA Model which will help the City expand their information and detail of their water loss control and conservation
programs City wide.
Task Eight: Reports
At the conclusion of the water audit a final report will be prepared detailing the step by step process involved with each segment of the audit. In addition, there will be a written
discussion of the results with the proposed remediation steps suggested. There will be a
printed and electronic copy of the Audit Spreadsheet along with the Water Balance
detailing the breakdown of each analyzed component. For each segment of the audit where a validity score was input, there will be a short discussion of each individual score. This will be useful in terms of short term and long term planning.
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