R2011-40 AUTHORIZING THE EXECUTION OF A WATER DISTRIBUTION SYSTEM LEAK DETECTION SURVEY AGREEMENT

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DEPARTMENT OF WATER MANAGEMENT Memqj�wdum No. 2011-04 March 28, 2011 TO: Honorable Mayor Michael T. McElroy and City Council FROM: Ryan P. McCrady, City Manager Keith D. Alexander, Director of Water Management kA SUBJECT: Water Distribution System Leak Detection Survey Agreement for Professional Services with ADS LLC SUMMARY RECOMMENDATION: Council adopt the attached Resolution authorizing an Agreement for Professional Services with ADS LLC for a lump sum fee of$102,302.38. BACKGROUND: In 2008 Council authorized ADS LLC to perform a leak detection survey of our entire water distribution system for the three year period from 2008 to 2010. As reported to Council last fall, the results of the survey were: Cost of Survey $80,323 Cost to Repair Leaks $70,309 First Year Cost Savings (based on water no longer leaking) $824,867 First Year Return on Investment (ROI) 548% Annual Cost Savings $975,499 The City realized $975,499 in annual savings based on our current cost to purify 1,162,000 gallons of water per day that is no longer leaking. The survey and resulting leak repairs enabled the City to reduce the amount of water purified daily at the South Water Treatment Plant by 5.8%. Due to the overwhelming operational and financial success of the previous survey, and the fact that new leaks can develop at any time, City staff recommends that another three year survey be undertaken beginning this year. Similar proactive multiyear schedules are common in the water g g Y utility industry. An important addition to the proposed survey is the accuracy testing of the South Water Treatment Plant water meters and the six largest water meters supplying the Archer Daniels Midland Company and Tate & Lyle North America. This testing is periodically required to ensure that the meters are accurately measuring the amount of water that is 1) leaving the treatment plant, and 2)being billed to our two largest water customers.