R2014-86 AUTHORIZING EXECUTION OF WATER DISTRIBUTION SYSTEM LEAK DETECTION SURVEY

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DEPARTMENT OF WATER MANAGEMENT Memorandum No. 2014-16 July 23, 2014 TO: Honorable Mayor Michael T. McElroy and City Council FROM: Ryan P. McCrady, City Manager Keith D. Alexander, Director of Water Management SUBJECT: Water Distribution System Leak Detection Survey Professional Services Agreement with ADS LLC SUMMARY RECOMMENDATION: City Council adopt the attached Resolution authorizing a Professional Services Agreement with ADS LLC for a cost not to exceed $98,649.27. BACKGROUND: ADS LLC has provided the City with cost effective leak detection survey services since 2008. As reported to the City Council last fall, the 2011 through 2013 survey results were: Cost of Survey $86,353 Cost to Repair Leaks $53,290 Annual Water Savings Value $733,539 Return on Investment (ROI) 525% Annual savings per each $1 spent on survey and repairs $5.25 The City realized $733,539 in annual savings based on our current cost to purify 309,155,000 gallons of water per year that is no longer leaking. The survey and leak repairs enabled the City to reduce the amount of water purified annually at the South Water Treatment Plant by 4%. Due to the overwhelming operational and financial success of the previous six years of surveys, and the fact that new leaks can develop at any time, City staff recommends that another three year survey be undertaken beginning this year. Since ADS staff is only in Decatur for a few weeks each year to perform the survey, the agreement also includes up to 9 emergency leak call-outs for ADS staff to travel to Decatur to find difficult to locate new leaks that inevitably occur when they are not in Decatur. Examples include deeply buried water main, severely frozen soil conditions and water mains adjacent to or in waterways.