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HomeMy WebLinkAbout14- M.E. Simpson Co. PSA • 44 • ie :8 1PF 4v, rr� Co.fo PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT is made and entered into this 6`h 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. Scone 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 Renresentations: 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 Professional Services Agreement for Survey-Audit Project for the City of Bozeman,Department of Public Works FY 2015 Page I of 10 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. Indemnitv/Waiver of Claims/Insurance: For other than professional services Professional Services Agreement for Survey-Audit Project for the City of Bozeman,Department of Public Works FY 2015 Page 2 of 10 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 Professional Services Agreement for Survey-Audit Project for the City of Bozeman,Department of Public Works FY 2015 Page 3 of 10 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 anprove all insurance coverage and endorsements prior to the Contractor commencing work. Professional Services Agreement for Survey-Audit Project for the City of Bozeman,Department of Public Works FY 2015 Page 4 of 10 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 Citv'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. Professional Services Agreement for Survey-Audit Project for the City of Bozeman,Department of Public Works FY 2015 Page 5 of 10 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 I3(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 Assertine 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. Citv'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 Professional Services Agreement for Survey-Audit Project for the City of Bozeman,Department of Public Works FY 2015 Page 6 of 10 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. Professional Services Agreement for Survey-Audit Project for the City of Bozeman,Department of Public Works FY 2015 Page 7 of 10 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 Assisnability: 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. Renorts/Accountabilitv/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 Professional Services Agreement for Survey-Audit Project for the City of Bozeman, Department of Public Works FY 2015 Page 8 of 10 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. Professional Services Agreement for Survey-Audit Project for the City of Bozeman.Department of Public Works FY 2015 Page 9 of 10 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. '\ CONT ' • I ' B is y _ - . Chris Kukulski, City Manager Mich ID. Si pson, CEO APPROVED AS TO FORM: By Greg S van, Bozeman City Attorney Professional Services Agreement for Survey-Audit Project for the City of Bozeman, Department of Public Works FY 2015 Page 10 of 10 ATTACHMENT A Scone of Services ME Simpson Co., Inc.,Utility Water Loss Control Survey-Audit Proiect 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. 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 Innuts 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). 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. • 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 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. Task Five: AWWA Water Audit Sareadsheet 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. 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: Renorts 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.