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R-96-03-14-10C - 3/13/1996Mayor Charles Culpepper Mayor Pro -tem Earl Palmer Council Members Robert Stlaka Rod Morgan Rlek Stewart Marsha haves Jimmy Joseph CIty Manager Robert L. Bennett, !r. City Attorney Stephan L. Sheets CITY OF ROUND ROCK April 22, 1996 James B. Smith, President JBS Associates, Inc. 4715 Strack Road Suite 100 Houston, TX 77069 Dear Mr. Smith: Please find enclosed the Addendum to Professional Services Proposal Water Distribution System Audit for your files. This addendum is regarding Resolution No. R- 96- 03- 14 -10C which was approved by the Round Rock City Council on March 14, 1996. If you have any questions, please do not hesitate to call. Sincerely, e. c',ect/nol. oanne Land Assistant City Manager/ City Secretary Enclosure Fax: 512-218-7097 1- 800-735.2989 TDD 1-800-735-2988 Voice 221 East Main Street Round Rock, Texas 78664 512-218-5400 Mayor Charles Culpepper Mayor Pro-tem Earl Palmer Coundl Members Robert St(aka Rod Morgan Rick Stewart Martha Chavez Jimmy Joseph City Manager Robert L Bennett Jr. City Attorney Stephan L Sheets CITY OF ROUND ROCK April 10, 1996 James B. Smith, President JBS Associates, Inc. 4715 Strack Road Suite 100 Houston, TX 77069 Dear Mr. Smith: Resolution No. R- 96- 03- 14 -10C was approved by the Round Rock City Council on March 14, 1996. Enclosed is a copy of the resolution and agreement for your files. If you have any questions, please do not hesitate to call. Sincerely, t AtAwb o anne Land Assistant City Manager/ City Secretary Enclosure(s) Fax: 512- 218 -7097 1- 800 - 735- 29891DD 221 East Main Street Round Rock. Texas 78664 512- 218 -5400 • 1-800-735-2988 Voice Professional Services Proposal Water Distribution System Audit - • City of Round Rock, Texas January 1996 Co; :d3 -) / . JBS Associates, Inc. A. Present Situation Preliminary data furnished by the Public Works Department indicates the total percentage of unaccounted and /or unbilled -for water appears to be at a moderate percentage of the total supply for the year of 1995. B. Cost Analysis Executive Summary The actual cost of each unit of water lost because of underground leaks and other non - billable causes is composed of the direct costs to purchase, process, and distribute that incremental unit of water. Based on the preliminary information furnished us by the city, the direct cost of water lost through underground leaks and other non - billable causes is estimated at $0.20 per one thousand gallons (energy and chemical costs- actual costs for 1995 including operational costs for each pumping station was not available at the time of the proposal preparation). The value of each unit of water lost as a result of problems associated with meter- ing, billing, and other billable and recoverable causes is determined by the water and wastewater "retail" rates applicable to that unit of water. Therefore, losses in the category of metering, billing or associated problems have a potential recovery value of approximately $3.49 per one thousand gallons , which is the nominal sum of the commodity charges for water and wastewater services (Water = $1.76/1000 gallons, and Sewer = $1.73/1000 gallons). It is important to acknowledge that presently a unit volume of water lost because of a metering or billing inefficiencies in Round Rock has at least a 17 tunes value as the same volume of water lost through underground leaks. This analysis does not take into consideration intangible situations such as water conservation concerns, water shortages etc. It compares only the retail rate of water against the estimated base production costs of water. In other systems we have analyzed, we frequently have determined that about 70 to 80 percent of the unaccounted -for volume loss resulted from underground leaks (non - billable), while about 20 to 30 percent of the volume loss resulted from problems relating to metering, billing, theft and other causes, all of which are billa- ble and recoverable at the "retail" rate. 3 4,Qxu )0,4-yuca 04A-i / 9 . JBS Associates, Inc. Round Rock, Texas Prior to conducting an actual audit of the Round Rock distribution system, it is very difficult to speculate as to where the distribution system losses are occuring and the resultant loss in revenue to the City. Granted, it is neither practical nor cost - effective to seek recovery of all water loss in a distribution system. However, considering the percentage of loss in the Round Rock system, there is indeed opportunity for meaningful recovery. Even a modest recovery of water loss could repay the city for the cost of the audit in a relatively short period. The audit will be of value to the city in continuing its efforts to: 1. Maximize earned revenues while minimizing the need for periodic utility rate increases. 2 Minimize water purchase and distribution costs. 3. Reduce maintenance costs and protect capital investment by minimizing wear on distribution components. 4. Improve system efficiency. 5. Conserve the water resource, thereby protecting and extending its useful life. 4 JBS Associates, Inc. Round Rock, Texas Table of Contents Transmittal Letter and Executive Summary Page I. Water Distribution System Audit - Scope of Work Task 1 - Analysis of Water Production Data Task 2 - Comprehensive Analysis of Metered Accounts Task 3 - Investigation of Water Loss through Unmetered Uses Task 4 - Analysis of Line Breaks and Leaks Task 5 - Evaluation of Underground Leakage Potential Task 6 - Final Report of Audit Fee for professional services A. Resumes of Principals B. Professional References 6 7 9 9 9 9 10 14 18 5 1 1 1 1 1 1 1 1 1 1 1 1 1 i 1 1 1 1 1 1 JBS Associates, Inc. Round Rock, Texas Professional Services Proposal Water Distribution System Audit City of Round Rock, Texas January, 1996 I. Water Distribution System Audit - Scope of Work Task 1 - Analysis of Water Production Data The first essential step in evaluating the water system will be the verification of available data indicating the volume of water produced for distribution. We will review the methods used to report and to record the amount of source water produced. Documents reflecting source water volume for the most recent three years will be reviewed, if available, and a physical inspection will be made of all source meters to confirm that the meter type, size, installation, and application are appropriate. The analysis of water production data will include: • Identification of possible meter installation problems that may adversely affect accuracy, longevity or reliability. • Confirmation of appropriate meter sizing and application. • Verification of water production records. • Establishing consistent format for future use. • Testing for accuracy select production meters. The analysis of existing water production data can confirm that the production volume data used in determining the quantities and percentages of water loss are correct. The quantity of water sold , the other part of the sales /production equation, will be verified in the Analysis of Metered Accounts which follows. 6 JBS Associates, Inc. Round Rock, Texas Task 2 - Comprehensive Analysis of Metered Accounts This task is most vital to the study, in part because of the high potential value of unaccounted -for water recoverable at applicable retail water and waste- water rates, and its importance in determining just how existing and proposed water and wastewater rate structures affect the utility enterprise. • We will have the city extract from its utility billing system computer files specific data for each water customer account for the most recently available 12 - month period and provide that data to us on diskette(s) in ASCII format. • We will confirm and compare summary metered sales volume with mea- sured production and analyze them on both monthly and year -to -date bases. • All 13,000 plus metered accounts will be reviewed. No -use, low -use, and high -use accounts will be tagged to facilitate further investigation and follow -up. • JBS Associates will calculate the Meter Utilization Index (MUI) for each active water account. Metered accounts will be sorted by MITI so that those meters having the greatest potential for accuracy, application or sizing problems may receive prioritized attention. • In order to help fine -tune operations within the system, this task will include analyses of metered revenues, meter sizes, meter routes, and meter age as they relate to meter reading, billing, meter replacement and maintenance. • City policies and procedures that either directly or indirectly affect the unaccounted -for water situation will be reviewed, and recommendations submitted where indicated. A complete distribution of sales analysis will be performed, listing each 1000 gallon unit of sales, and the number of accounts that fall into each category as shown in the example below. 7 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 JBS Associates, Inc. Round Rock, Texas i DISTRIBUTION OF SALES 1000 GALLON UNITS 1400 Percent 100 100 90 1260 1120 IN - 8 840 - -- , I �� N ': 40 280 0 �I ' �� d Main. �,....,,__... t? t0 0 0 2 4 6 8 10 2 14 16 18 20 22 24 >26 1000 Gallon Units IDS Accounts -.Cum Accounts . -Cum Sales I JBS Associates, Inc. The above graph shows that approximately two percent of the total customers generate nearly 25 percent of the total sales. Because the potential exists for large meters to lose significant amounts of revenue, all compound meter and turbine meter installations will be physically inspected. • We will perform an inspection report for each of the larger meter installations and photograph any significant deficiencies. The reports will be compiled as a basis for subsequent analysis and recommendations. We will report observed totalizer readings, indicated rate(s) of flow, the existence of open or closed bypass lines, and instances of apparent meter malfunction and impaired register readability. On compound -type meters we will report the indicated total for each of the multiple chambers and calculate the ratio of recorded volume between the high- and low -flow chambers. • JBS Associates will compile the findings of the field investigations to indicate those meters that are candidates for further investigation, testing, repair, resizing, or replacement by the Water Department. Installations deemed inadequate and meters considered inappropriate for their application will be reported. 8 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 JBS Associates, Inc. Round Rock, Texas 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 JBS Associates. Inc. Round Rock. Texas • A cost benefit analysis will be prepared for each meter where action is recommended. • Meter replacement and payback periods will be determined for each meter size, based on actual usage. Task 3 - Investigation of Water Losses through Unmetered Uses JBS Associates will review existing ordinances, policies, procedures, records and incident reports relative to service theft and unauthorized use and submit its findings and recommendations to the water department staff. JBS will review reporting procedures concerning areas of non - revenue water usage such as flushing, street and sewer maintenance, fire fighting and training, and other city activities. Task 4 - Field Measurements to Determine Underground Leakage Potential Field measurements will be made in the early morning hours for the purpose of determining how much of the total volume of water loss might be attributable to underground leaks. By taking observed flow measurements, population, system statistics and observed night -time consumption into consideration, an estimated flow rate due to under- ground leakage may be developed. This information may be taken into account in determining if and where a physical leak detection survey might be cost - effective before committing to such a project. Task 5 - Analysis of Line Breaks and Leaks We will collect and compile existing records of line breaks and leaks reported, or work orders completed. The data be analyzed for possible correlation that may help establish priorities for the anticipate replacement of water distribution lines and service lines. Task 6 - Final Report of Water Distribution System Study All relevant data collected during the course of the study will be compiled, analyzed, with conclusions and prioritized recommendations presented in a written report. In order to facilitate understanding of critical and key points, the report will include charts or other suitable graphics. 9 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 JBS Associates. Inc. Round Rock. Texas JBS Associates, Inca Round Rock, Texas The final report will be presented in person to allow staff the opportunity to ask questions about the results and recommendations presented. Fees for Professional Services Based on information furnished to date by the City of Round Rock, JBS Associ- ates, Inc. will perform the Water Distribution System Audit as described for an aggregate fee to not exceed $33,500. At a loss of $1 million annually (39 percent unaccounted -for water), each percent of water loss equates to about $25,600, and a recovery of less than two percent of the total unaccounted -for water would pay for the audit. This proposal is offered subject to acceptance within 90 calendar days. IN WITNESS THEREOF, the City of Round Rock, Texas and JBS Associates, Inc., a Texas Corporation hereby execute this agreement by their duly authorized officers. CLIENT: CONSULTANT: City of '. ound Rock, Texas JBS Associates, Inc Housto Texas B Title: MhYORd Date: I I — i Attest: By.. 1 l.I Tit City Secretary Date: y- m-9(O 10 droo i ■/I.� .r Title:P I -sident ' / By: Date: 3 Attest: By: y Title: -oc.Je9 Date: 62, 19S(0 ADDENDUM TO PROFESSIONAL SERVICES PROPOSAL WATER DISTRIBUTION SYSTEM AUDIT CITY OF ROUND ROCK, TEXAS JANUARY, 1996 The following provisions are incorporated into the Professional Services Proposal for the Water System Distribution Audit Agreement between JBS Associates, Inc. (hereinafter "JBS ") and the City of Round Rock, Texas (hereinafter "City "). 1. This agreement is entered into on the /'! day of v ' el-L- 0 , 1996. 2. City owns and operates a water utility system. City agrees to engage JBS to perform services as outlined in the Professional Services Proposal and this Addendum thereto. JBS agrees to perform such services under the terms and condition set forth in the Professional Services Proposal and this Addendum thereto. 3. The engagement of the JBS shall begin on the 1 day of IYICIAL-A--/ , 1996, and shall remain in full force and effect until the services are fully performed by JBS, or until terminated as provided for elsewhere in this Addendum. 4. The parties intend that JBS, in performing the specified services, shall act as an independent contractor and shall have control of the work and the manner in which it is to be performed. JBS shall be free to contract for similar services to be performed with other entities while JBS in under contract with City. JBS is not to be considered an agent or employee of the City and is not entitled to participate in any retirement plans, health insurance plans, or other benefits that the City provides for its employees. 5. JBS agrees to and shall indemnify and hold harmless City, its officers, agents, and employees, from and against any and all claims, losses, damages, causes of action, suits and liability of every kind, including all expenses of litigation, court costs, and attomey's fees, for injury to or death of any person, or for damage to any property, arising out of any negligent, wilful, or intentional act or omission of JBS, its officers, employees, and agents, or in connection with the work done by JBS under this agreement. 6. This agreement shall be binding upon and inure to the benefit of the parties hereto and other entities which might follow that would qualify at law as a successor in interest, and to executors, administrators, legal representatives and assigns. However, this agreement may not be assigned except as agreed upon in writing by both parties. R. \JRSWATLR.WPD /clb 1 ' 7. In rendering performance herein, JBS shall comply with the requirements of applicable federal, state, and local laws and regulations. In the event of a conflict between such laws and regulations and terms and conditions of this agreement, precedence shall be given to the most restrictive provisions of such laws, regulations, terms and conditions, as determined by the City. 8. There shall be no waiver. The failure or delay in the enforcement of the rights at law here inscribed to the City shall not constitute a waiver of said rights to be considered as a basis for estoppel. The City may exercise its rights despite said delay or failure to enforce said rights. 9. This agreement is subject to Texas law. Any and all obligations and services are performable in Round Rock, Texas, and the venue for any legal action relating to this agreement shall be in Round Rock, Williamson County, Texas. 10. If any provision herein is, for any reason, held in violation of any applicable law, and so much of said agreement is held to be unenforceable, then the invalidity of such a specific provision shall not be held to invalidate any other provisions, which other provisions shall remain in full force and effect unless removal of invalid parts destroys the legitimate purposes of this agreement. In the latter case, as determined by the City, this agreement shall be canceled. 11. JBS shall purchase and maintain such comprehensive general liability insurance as is deemed necessary by the City. JBS shall provide the City with a Certificate of Insurance evidencing the above, and said Certificate shall contain a provision that the coverage afforded will not be canceled, materially changed or renewal refused until at least thirty (30) days prior written notice has been given to the City by certified mail. 12. Either party may terminate this agreement if the other party fails to cure a material breach which substantially impairs the value of the contract as a whole to the non - breaching party within ten (10) days of the receipt of written notice being given by the non - breaching party. In the event such default or breach is not cured within the specified time, the contract may be terminated upon written notification to the breaching party. 13. The City may cancel this Agreement for convenience and without cause upon thirty (30) days written notice to JBS. 14. Any notice required or permitted to be given under this Agreement shall be sufficient if written and hand- delivered or sent by registered mail, retum receipt requested, as follows: If to the City: City Manager City of Round Rock 221 East Main Street Round Rock, Texas 78664 . JBS ASSOCIATES, INC.: NA TITL With a copy to: Stephan L. Sheets, City Attorney City of Round Rock 309 East Main Street Round Rock, Texas 78664 If to JBS Associates, Inc.: James B. Smith, President JBS Associates 4715 Strack Road, Suite 100 Houston, Texas 77069 (713) 580-4200 (713) 440 -3826 Fax or at any other address that may be given by any party to the other party by notice in writing. Signed, accepted and agreed to this / 9 1€h) day of / , 1996b); the undersigned parties, who execute this legal document within the autho ities granted to them by their respective entities. : T ti--44 a p 22 rid en/ r trr+ ATTEST: �C�. 5 ATTEST: CITY OF ROUND ROCK, TEXAS: CHARLIE U EPPER, MAYOR I Ala/E0 NAME: k P/ / 4111 / 1 JOANNE LAND, ASST. CITY MANAGER TITLE: 3 p3. I PRODUCER KILN, ROGAL AND HAMILTON 14825 ST MARY'S LE #100 HOUSTON TX 77079-2997 ,.. ,,,.,„.. , THIS CERTIFICATE Itl 6 R F INFOH A ION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOED NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. -. COMPANIES AFFORDING COVERAGE coo..I A DURLINGTON INSURANCE % MCCLELLAND LETTER SOMPAArt a LETTER INSURED I 13 S ASSOCIATES, INC. 4715 STRACK RD. SUITE 0. iOUSTON, TX 77069 COMPANY C 0 • LETTER t =HOLM/ 0 LErts COMPANY E #.9YRIA9,R.rii, , M.giakikS, k W.at'SVXMVX4ibk. g a . e.i':::V 7 . 0, k ,, h ,1447:4?4, Ael itiikAsk = 1.. w .aimagg.gt"Si*V.,i,A-.4.2:f3::,...:::Aii.:1Zi 1/4 4 , tragwag rr WINFORgt BAN? wc e§,... . ligin4,3 61 Wiliam siiSVAZMEBEEN RnlYilloWAPE i TERMS. 'O TIPS OF INSURANCE tauormumacri POuen' rxrconys I lift NUAinAm rainy OrtArtArto“ OATE (IALUDO" I HITS h MURAL LIABILITY MERCI.M. GENERAL LDWIL/IY Me MADE [joceu A 00/4PACTOSS KM $260 DEDUCTIBLE 0179G400415R1 • 07/05/95 1/05/96 1 . — 'WV'. ''''''''' 1 . 600 00C ._,.... PRODUCTS COMP/OP AGO. 9 PEQNAL6AOH,WJRY A 300 000 EAOFICGOVERENOS $ 300,00C ONUS {Am em EH) • 50,00c 4 1,nnr M ED.RNP. (my .. F.,...) AUTOMOBILE ....■ -- -- LIABILITY ART ALEO ALL ovolED AUTOS SCHEDULED AUTOS Hanco AUTGes -oWNEo AUTOS O MWIIUAUIUTY : . • _; °WARNED OINOLL U MIT I 8001Y INJUF11 No:4mm A S�ZB.VIMJI.IIW Pal AcHstrm B B MCMBOflflSMW a Erczat IJAMITY MENALLA NAM OTHER THAN USIORZI.LA FORM .. l' EAUMOLSAJMNSIVA A s AGGREGATE WORKER'S COMPENSATION AND EMPLOYERS' HAMMY • , I GTATuTORT umrts , . :.; ,.,..,t I EACH AtCEICKF OISEASE-FOLICY UNIT s DIEESEIE-.EACSI EMPUJTEE OTHER • OnesuPTIOS OF ODERATiOREA.00ATIONINEHICLEOMPECIAL ITEMS tetrrin71,k,Y.: ." ' :•q' ''' ''..'M''' .” ... ,: cANceLtA TY :10.- ; ' : °' . "n r ,i ' .,,. SHOULD ANY OF THE ABOVE 0 ESCsi BEI) POLICIES BE CANCELLED BEFORE THE •i EXPIRATION DATE THEREOF. THE ISSUING COMPANY WILLgRO.Mujetypx CITY OF ROUND ROCK . MAIL 30 OAYB WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE 2008 ENTERPRI SE • LEFT. ROUND ROCK TX 78664 : MMI010 r - AUTHORIZED REI;REWATIV . fie'.e'e' ( i a . ' " . ." .I' A''';..• ..104,IIIt! riVi••• ' I ,POR PORATION 1810 I 04 10:-54AM PROM NAIA . / PO1 JBS Associates, Inc. Round Rock. Texas A. General Information III. Organization JBS Associates is a consulting firm incorporated in the state of Texas and headquartered in Houston. The firm provides water loss reduction consultation services to assist client water utility enterprises better manage their financial and water resources. The firm is headed by its founder and president, James B. Smith, who has been engaged in the water loss reduction field for 18 years. 11 JBS Associates, Inc. Round Rock, Texas James B. Smith President, JBS Associates Mr. Smith has extensive experience in water distribution and wastewater collection system studies, including water audits, meter audits, leakage surveys, infiltration and inflow studies, groundwater development and investigations. His diverse professional experience, in addition to that in the private sector includes employment with both state and local government agencies. He has been actively involved in water system accountability and water conservation programs spanning a total of 17 years, while working on three continents. He has progressively developed and modified programs dealing with water and meter auditing concepts. He has presented training programs to over 8,000 people in the United States, Canada, Southeast Asia, Central and South America. From his experience in working with several hundred utilities, Mr. Smith understands the changing internal dynamics of individual systems. Smith has developed several fresh approaches to water conservation needs and to the reduction of unaccounted -for water losses. These techniques are the result of years of diverse hands -on experience. Prior to the establishment of JBS Associates in 1988, Mr. Smith served as National Marketing Director and Western States Manager for the Pitometer Associates. He joined that firm in 1985 when his prior firm, Water Resource Associates merged with the Pitometer Associates. International Assignments • In 1984, Smith served as the Water Loss Advisor to Manila, Philippines on an Asian Development Bank Project through Camp Dresser & McKee, Inc. and continued in that capacity through 1989. • Responsibilities included establishing a system wide regional metering scheme for leakage control, a large meter sizing and application including meter testing, maintenance and replacement. • In 1986, Mr. Smith worked as Meter Application and Sizing Training Consultant for Medellin, Columbia, through Greeley and Hanson Engineers. In addition to meter application, a complete water loss reduction training program was implemented, which included leakage control, zone monitoring, and leak detection equipment and methodology review. • In 1987 and 1988, he served as Training Advisor to San Pedro Sula, Honduras, through the Pitometer Associates. Included was leakage control and meter application and sizing. Meter maintenance, testing and replacement frequencies were established. 12 JBS Associates, Inc. Round Rock, Texas • In 1988, Smith worked as the Meter Sizing Consultant for San Juan, Puerto Rico. The work included a review of production metering, testing for accuracy, installation recommendations and sizing. • In 1992 he was selected to review water loss problems and large meter applications for Wessex Water Plc in the UK. • In 1993 was selected by the Asian Development Bank as a consultant to review the water meter program at Manila Water and Sewerage System (MWSS) , and determine its overall impact on NRW. • In 1994 was selected by Manila Water and Sewerage System as a meter management and NRW consultant. The terms of reference called for a one year assignment with major emphasis on organizational layout and large meter management program including a complete review of all large meters, resizing, testing, installation, and the development of new meter specifications. In addition to large meters, a complete management program was to be set up for small meters, supply meters, and district meters. Also NRW reduction programs were to be set up in each of the new sector offices. • In 1995, selected by International City Managers Association (ICMA) to be part of initial fact finding group for a NRW training project in Bulgaria. • In 1995 was selected by the German Bank KFW to analyze the unaccounted -for Water problems of 14 provincial water systems in the Philippines. Training Seminars • 1981 -1989 - American Water Works Association "Water Loss Reduction" Developed and instructed for AWWA over 100 - one day seminars designed to help water system managers understand water loss reduction techniques and the relative cost - effectiveness of water loss reduction programs. Nine major areas of water loss were covered. • 1985 -1989 - American Water Works Association "Meter Application and Sizing" As a sequel to the Water Loss Reduction program, this seminar discussed in greater detail that portion of unaccounted -for water losses associated with metering. Aspects of meter sizing, installation, testing, and applications of source (production), commercial, indus- trial, and residential meters were presented. • 1988 -1989 - World Bank Seminars (University of North Carolina) Instructed World Bank engineers in the principles of water auditing, water conservation, and distribution system efficiency as they pertain to systems in developing nations. • 1989 - Massachusetts Water Resources Authority This expansion of the AWWA course on water auditing included actual hands -on field training relating to water loss reduction. A series of two -day courses were taught across the Commonwealth. • 1987 -1992 - University of Wisconsin (Water Distribution Course) Presented two -day courses of instruction on water system accountability for engineers and system managers. The program was expanded by the University of Wisconsin and offered in several regional locations across the United States.. 13 JBS Associates, Inc. Round Rock, Texas • 1991 -1993 - Casper College, Wyoming A series of two -day courses on water system accountability, funded by the Environmental Protection Agency (EPA). • 1991 -1993 - Texas Water Development Board (Training in Water Loss Reduction) Was selected by the Texas Water Development Board to Develop and instruct a series of two -day courses of instruction on water loss reduction techniques at 15 selected locations across the state. Additional organizations sponsoring water auditing and meter auditing programs include: the American Water Works Association and numerous state associations, National Rural Water Association and numerous state associations, Illinois Society of Certified Opera- tors, Indiana Society of Certified Operators, U S Army Corps of Engineers, American Society of Civil Engineers, Harris- Galveston Coastal Subsidence District. Papers • 1986 - AWWA -DSS "Leak Detection and Reduction of Unaccounted for Water ". • 1987 - AWWA -DSS "Reducing Unaccounted -For Water and Increasing Revenue" - Also published in Puerto Rico and North Carolina in 1988 as a part of their respective annual meetings. • 1988 - University of Wisconsin - "Importance of Metering in Controlling Non - Revenue Water • 1989 - University of North Carolina World Bank Seminar - "Developing an Effective Water Loss Reduction Program ". • 1990 - Texas Rural Water Association - "The Metered Ratio - The Great Hoax ?" • 1991 - AWWA - National Conference, Philadelphia - "The Water Audit - Cost-Effective Direction? • 1992 - AWWA - National Conference, Vancouver, B.C. - "Establishing An Effective Water Loss Reduction Program" • 1993 - AWWA Research Foundation - San Jose, Ca - "Leakage Control System" - Part of a cooperative research report between the AWWA Research Foundation and the Japan Water Works Association. • 1994 - Philippine Pipeline - "Which Small Meter is Best for MWSS - Class B or Class C? 14 1 1 1 1 1 1 1 1 1 JBS Associates. Inc. Round Rock. Tex JAMES A. SCHIELE Vice President Over 20 years' water industry experience in North and South America, and Europe. Employed in both the consultant and manufacturing areas, has provided consulting services, training, technical support and sales activities related to water loss analysis, flow measurement, subsurface pipeline surveys, leak detection instruments and pipe /cable locating instruments. Responsibilities have included project management, water account- ability studies, planning and conducting leak detection surveys, coordination and execu- tion of professional training programs for utility and contractor personnel, product devel- opment and testing as well as demonstration and sales of microprocessor -based leak correlators and instrumentation. Prior to joining JBS Associates, Inc. in 1993, Mr Schiele was employed by Fluid Conser- vation Systems (FCS) of Austin, Texas From 1982 to 1993. The company benefitted from his substantial experience in the field of leak detection and water loss recovery. He has conducted programs for FCS products and services throughout the U.S., Canada, Mexico and Brazil including product development, product demonstrations, personnel training, and supervision and coordination of FCS Leak Survey Services. Papers In 1985 and 1987 he presented the following papers at the AWWA Annual Conference and Exposition: • June 26, 1985 The Value of High Technology Solutions in Control and Maintenance of Water Distribution Systems • June 16, 1987 New Technologies for Operation and Maintenance of Water Distribution Systems Professional Background: 1993 - Present Mr. Schiele is Vice President and Projects Director at JBS Associates, Inc., of Houston, Texas. This organization specializes in offering consult- ing services for water agencies in the areas of water loss analysis, consumption analysis, flow measurement and leak detection. 1991 to 1993 Technical Services Manager for Fluid Conservation Systems Inc. (FCS) of Austin, Texas. Responsible for organization and function of new Techni- cal Services Department Services provided by this group included: o On -Site Customer Training Programs o Water Accountability Studies o Leak Detection Survey and Map Updating Services o Customer Service and Technical Support 15 1 1 1 1 1 1 1 1 1 JBS Associates. Inc. Round Rock. Tex 1 1 1 1 1 JBS Associates, Inc. Round Rock, Tex o Product Development and Testing o Repair Lab. Operations o Manuals and Documentation (including Spanish translations) 1986 to 1990 Regional Manager at FCS, Austin. Responsible for demonstrations, sales and product support of microprocessor -based leak correlators to munici- pal, state and private water agencies as well as consultants. Due to interna- tional background was also responsible for export sales of these products. Worked closely with R & D engineers at Tracor Inc. Austin in product development of new correlator systems. 1981 to 1985 Marketing Representative at FCS, Austin. Developed promotional programs to address water agencies in mid- western states. Programs included on -site presentations and field demonstrations and training programs. Successful establishment of market in this region led to opening of a regional office in the Chicago area in 1985. Also developed leak survey services for FCS customers as option to implementation of in -house programs. Proposed, managed and/or conducted FCS leak surveys throughout the U.S. (1982 -85). 1979 to 1981 Project Manager for Hydrotronic Corporation of America, posted to Lima, Peru, to supervise the leak detection survey undertaken for the Empresa de Saneamiento de Lima (ESAL) on approximately 2,200 Km. of the city's water distribution system. Successful completion of this survey project and training of local personnel, under extreme field conditions, resulted in the setting up of a permanent in -house leak detection program for the client. 1974 - 1979 Began training in leak detection systems with Hydrotronic (Jersey) Ltd., a U.K. based company, in 1974. For 3 years worked as Field Engineer on numerous leak detection surveys with a wide variety of water systems in Europe, gaining experience in the use of spectrum analysis techniques for detecting and pinpointing leaks, pipe and cable location, map correction, on -site equipment maintenance and training new personnel. Privileged to work side by side with the highly skilled leak detection team of one of Europe's top water utilities (Azienda Acquedotto Municipale, Turin, Italy) for over a year. Some of the European water agencies for whom Mr Schiele conducted loss surveys include: o Azienda Acquedotto Municipale, Turin, Italy o Azienda Municipale Gas e Acqua, Ravenna, Italy o Azienda Acquedotto Municipale, Florence, Italy o Azienda Acquedotto Romano, Rome, Italy o Azienda Acquedotto Municipale, Brescia, Italy o Azienda Municipale, Milan, Italy 16 1 1 1 1 1 JBS Associates, Inc. Round Rock, Tex JBS Associates, Inc. Round Rock. Texas o Azienda Municipale Gas e Acqua, Pinerolo, Italy o Azienda Acquedotto Municipale, Palermo, Italy o Canal Isabel II, Madrid, Spain o Canal de Santillana, Madrid, Spain Leak Detection and Correlator Instruction: Mr. Schiele has prepared and conducted thousands of hours of professional training courses for industry personnel as summarized below: Customers for whom Mr. Schiele has conducted leak detection training include: • Contra Costa Water District, Concord, CA • Los Angeles Department of Water & Power, CA • East Bay M.U.D.,Oakland, CA • City of Santa Rosa, CA • Denver Board of Water Commissioners, CO • City of Colorado Springs, CO • South Central Connecticut Regional Water Authority, Newhaven, CT • City of Chicago Bureau of Water, IL • New Jersey American Water Co., NJ • New York City, Bureau of Water Supply, NY • Pennsylvania American Water Co., PA • Pittsburgh Water Authority, PA • City of Philadelphia, PA • Dallas Water Utilties, TX • City of Houston, TX • San Antonio Water System, TX • Sistema de Agua Potable y Alcantarillado, Leon, MEXICO • Companhia de Saneamento de Minas Gerais, Belo Horizonte, BRAZIL • Companhia de Saneamento Basico do Estado de Sao Paulo, Sao Paulo, BRAZIL Educational Background: Majored in Languages at Walbrook College, London, 1968 -70, and subsequently completed professional studies in Computer Technology at Control Data Institute, London. Computer and electronics skills proved invaluable for the utilization of advanced leakage control technology. Mr. Schiele's knowledge of water distribution systems, and specifically in the area of water loss recovery, has been acquired through 20 years of practical studies, including 8 years' daily field experience in a wide variety of water systems. Learned to speak Spanish fluently in Argentina during student years. Further enhanced knowledge of the language and water industry related terminology in Spain, Peru, Mexico and Panama. 17 JBS Associates, Inc. Round Rock, Texas Additional details and references are available upon request. Professional References Bill Riley, Superintendent 409 - 764 -3657 Bart Hines, Manager 210- 972 -7000 Lucy Hernandez 210 - 982 -6100 1 Ivan Langford, Manager 713 - 337 -1576 Ed Cross, Superintendent 704- 866 -6827 Dennis Harmon, Superintendent 501- 855 -3746 Chuck Overbeck, Director 903- 984 -5081 Chuck Lawrance, P.E., V.P. 805 -564 -2441 College Station, TX McAllen, TX Brownsville, TX Galveston WCID No. Gastonia, NC Bella Vista, AR Kilgore, TX LFM Engineers, Santa Barbara, CA Pennsylvania- American Bill Luta Water Company Rogers, AR Tom McAlister, Director Seabrook, TX Gary Jones, Director Texas Water Development Board Bill Hoffman University of Wisconsin Dr. Roy Holub at Madison Marshall, TX Cecil Forrester, Director 18 717 - 531 -3307 501- 621 -1142 713 - 474 -4802 512- 445 -1469 608- 262 -2061 903 - 935 -4485 ATTEST: RESOLUTION NO. R 96 03 14 - 10C WHEREAS, the City is in need of professional services for the water distribution audit t for the Public Works Department, and WHEREAS, 385 OJ DCkOLtJ Q J t r kJ • has submitted a proposal to provide said professional services, and (� WHEREAS, the Council wishes to accept the proposal of J 13S 0.26X6 max/ J ( w• , Now Therefore BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS, That the Mayor is hereby authorized and directed to execute on behalf of the City an agreement with J ANNE LAND, City Secretary C \WPOOCS \R850LVT2 \R860314C Wm/kg • ,4 144 *Ii to provide the needed professional services for the water distribution audit for the Public Works Department, a copy of said agreement being attached hereto for all purposes. RESOLVED this 13th day of March, 1996. CHARLES CU ER, Mayor City of Round Rock, Texas JBS Associates, Inc. A. Present Situation B. Cost Analysis Executive Summary Preliminary data furnished by the Public Works Department indicates the total percentage of unaccounted and /or unbilled -for water appears to be at a moderate percentage of the total supply for the year of 1995. The actual cost of each unit of water lost because of underground leaks and other non - billable causes is composed of the direct costs to purchase, process, and distribute that incremental unit of water. Based on the preliminary information furnished us by the city, the direct cost of water lost through underground leaks and other non - billable causes is estimated at $0.20 per one thousand gallons (energy and chemical costs- actual costs for 1995 including operational costs for each pumping station was not available at the time of the proposal preparation). The value of each unit of water lost as a result of problems associated with meter- ing, billing, and other billable and recoverable causes is determined by the water and wastewater "retail" rates applicable to that unit of water. Therefore, losses in the category of metering, billing or associated problems have a potential recovery value of approximately $3.49 per one thousand gallons , which is the nominal sum of the commodity charges for water and wastewater services (Water = $1.76/1000 gallons, and Sewer = $1.73/1000 gallons). It is important to acknowledge that presently a unit volume of water lost becauise of a metering or billing inefficiencies in Round Rock has at least a 17 times value as the same volume of water lost through underground leaks. This analysis does not take into consideration intangible situations such as water conservation concems, water shortages etc. It compares only the retail rate of water against the estimated base production costs of water. In other systems we have analyzed, we frequently have determined that about 70 to 80 percent of the unaccounted -for volume loss resulted from underground leaks (non - billable), while about 20 to 30 percent of the volume loss resulted from problems relating to metering, billing, theft and other causes, all of which are billa- ble and recoverable at the "retail" rate. 3 IBS Associates, Inc. Round Rock, Texas Prior to conducting an actual audit of the Round Rock distribution system, it is very difficult to speculate as to where the distribution system losses are occuring and the resultant loss in revenue to the City. Granted, it is neither practical nor cost - effective to seek recovery of all water loss in a distribution system. However, considering the percentage of loss in the Round Rock system, there is indeed opportunity for meaningful recovery. Even a modest recovery of water loss could repay the city for the cost of the audit in a relatively short period. The audit will be of value to the city in continuing its efforts to: 1. Maximize earned revenues while minimizing the need for periodic utility rate increases. 2. Minimize water purchase and distribution costs. 3. Reduce maintenance costs and protect capital investment by minimizing wear on distribution components. 4. Improve system efficiency. 5. Conserve the water resource, thereby protecting and extending its useful life. 4 IBS Associates, Inc. Round Rock, Texas Transmittal Letter and Executive Summary I. Water Distribution System Audit - Scope of Work Task 1 - Analysis of Water Production Data 6 Task 2 - Comprehensive Analysis of Metered Accounts 7 Task 3 - Investigation of Water Loss through Unmetered Uses 9 Task 4 - Analysis of Line Breaks and Leaks 9 Task 5 - Evaluation of Underground Leakage Potential 9 Task 6 - Final Report of Audit 9 Fee for professional services 10 A. Resumes of Principals 14 B. Professional References 18 Table of Contents 5 Page JBS Associates, Inc. Round Rock, Texas Professional Services Proposal Water Distribution System Audit City of Round Rock, Texas January, 1996 I. Water Distribution System Audit - Scope of Work Task 1 - Analysis of Water Production Data The first essential step in evaluating the water system will be the verification of available data indicating the volume of water produced for distribution. We will review the methods used to report and to record the amount of source water produced. Documents reflecting source water volume for the most recent three years will be reviewed, if available, and a physical inspection will be made of all source meters to confirm that the meter type, size, installation, and application are appropriate. The analysis of water production data will include: • Identification of possible meter installation problems that may adversely affect accuracy, longevity or reliability. • Confirmation of appropriate meter sizing and application. • Verification of water production records. • Establishing consistent format for future use. • Testing for accuracy select production meters. The analysis of existing water production data can confum that the production volume data used in determining the quantities and percentages of water loss are correct. The quantity of water sold , the other part of the sales /production equation, will be verified in the Analysis of Metered Accounts which follows. 6 JBS Associates, Inc. Round Rock, Texas Task 2 - Comprehensive Analysis of Metered Accounts This task is most vital to the study, in part because of the high potential value of unaccounted -for water recoverable at applicable retail water and waste- water rates, and its importance in determining just how existing and proposed water and wastewater rate structures affect the utility enterprise. • We will have the city extract from its utility billing system computer files specific data for each water customer account for the most recently available 12 -month period and provide that data to us on diskette(s) in ASCII format. • We will confirm and compare summary metered sales volume with mea- sured production and analyze them on both monthly and year -to -date bases. • All 13,000 plus metered accounts will be reviewed. No -use, low -use, and high -use accounts will be tagged to facilitate further investigation and follow -up. • JBS Associates will calculate the Meter Utilization Index (MUI) for each active water account. Metered accounts will be sorted by MUI so that those meters having the greatest potential for accuracy, application or sizing problems may receive prioritized attention. • In order to help fine -tune operations within the system, this task will include analyses of metered revenues, meter sizes, meter routes, and meter age as they relate to meter reading, billing, meter replacement and maintenance.; • City policies and procedures that either directly or indirectly affect the unaccounted -for water situation will be reviewed, and recommendations submitted where indicated. A complete distribution of sales analysis will be performed, listing each 1000 gallon unit of sales, and the number of accounts that fall into each category as shown in the example below. 7 i JBS Associates, Inc. Round Rock, Texas DISTRIBUTION OF SALES 1000 GALLON UNITS 1400 Accounts Percent 100 1260 90 1120 \ � 8 980 I�I;� 70 840 III 60 IN I> .\ so ao 44200 IIIII� 1 I ao zeo 61 1 I,' 1 140 l illl lll Q a o o 0 2 4 6 8 10 12 14 16 18 20 22 24 >28 1000 Gallon Units I ®# Accounts *Cum Accounts *Cum Sales JBS Associates, Inc. The above graph shows that approximately two percent of the total customers generate nearly 25 percent of the total sales. Because the potential exists for large meters to lose significant amounts of revenue, all compound meter and turbine meter installations will be physically inspected. • We will perform an inspection report for each of the larger meter installations and photograph any significant deficiencies. The reports will be compiled as a basis for subsequent analysis and recommendations. We will report observed totalizer readings, indicated rate(s) of flow, the existence;of open or closed bypass lines, and instances of apparent meter malfunction and impaired register readability. On compound -type meters we will report the indicated total for each of the multiple chambers and calculate the ratio of recorded volume between the high- and low -flow chambers. • JBS Associates will compile the findings of the field investigations to indicate those meters that are candidates for further investigation, testing, repair, resizing, or replacement by the Water Department. Installations deemed inadequate and meters considered inappropriate for their application will be reported. 8 JBS Associates, Inc. Round Rock, Texas • A cost benefit analysis will be prepared for each meter where action is recommended. • Meter replacement and payback periods will be determined for each meter size, based on actual usage. Task 3 - Investigation of Water Losses through Unmetered Uses JBS Associates will review existing ordinances, policies, procedures, records and incident reports relative to service theft and unauthorized use and submit its findings and recommendations to the water department staff. JBS will review reporting procedures concerning areas of non - revenue water usage such as flushing, street and sewer maintenance, fire fighting and training, and other city activities. Task 4 - Field Measurements to Determine Underground Leakage Potential Field measurements will be made in the early morning hours for the purpose of determining how much of the total volume of water loss might be attributable to underground leaks. By taking observed flow measurements, population, system statistics and observed night -time consumption into consideration, an estimated flow rate due to under- ground leakage may be developed. This information may be taken into account in determining if and where a physical leak detection survey might be cost - effective before committing to such a project. Task 5 - Analysis of Line Breaks and Leaks We will collect and compile existing records of line breaks and leaks reported, or work orders completed. The data be analyzed for possible correlation that may help establish priorities for the anticipate replacement of water distribution lines and service lines. Task 6 - Final Report of Water Distribution System Study All relevant data collected during the course of the study will be compiled, analyzed, with conclusions and prioritized recommendations presented in a written report. In order to facilitate understanding of critical and key points, the report will include charts or other suitable graphics. 9 JBS Associates, Inc. Round Rock. Texas The final report will be presented in person to allow staff the opportunity to ask questions about the results and recommendations presented. Fees for Professional Services Based on information furnished to date by the City of Round Rock, JBS Associ- ates, Inc. will perform the Water Distribution System Audit as described for an aggregate fee to not exceed $33,500. At a loss of $1 million annually (39 percent unaccounted -for water), each percent of water loss equates to about $25,600, and a recovery of less than two percent of the total unaccounted -for water would pay for the audit. This proposal is offered subject to acceptance within 90 calendar days. IN WITNESS THEREOF, the City of Round Rock, Texas and JBS Associates, Inc., a Texas Corporation hereby execute this agreement by their duly authorized officers. CLIENT City of Round Rock, Texas By: Title: 177 R YOR../ Date: 3-/g-940 Tit City Secretary Date: 10 CONSULTANT: JBS Associates, Inc Housto . . Texas /./ ' Title:P I sident By: Date: 3 — O —9 C Attest: By: Title: w cP Date: , / S9(� U JBS Associates, Inc. Round Rock, Texas A. General Information III. Organization JBS Associates is a consulting firm incorporated in the state of Texas and headquartered in Houston. The firm provides water loss reduction consultation services to assist client water utility enterprises better manage their financial and water resources. The firm is headed by its founder and president, James B. Smith, who has been engaged in the water loss reduction field for 18 years. 11 1 JBS Associates, Inc. Round Rock, Texas James B. Smith President, IBS Associates Mr. Smith has extensive experience in water distribution and wastewater collection system studies, including water audits, meter audits, leakage surveys, infiltration and inflow studies, groundwater development and investigations. His diverse professional experience, in addition to that in the private sector includes employment with both state and local government agencies. He has been actively involved in water system accountability and water conservation programs spanning a total of 17 years, while working on three continents. He has progressively developed and modified programs dealing with water and meter auditing concepts. He has presented training programs to over 8,000 people in the United States, Canada, Southeast Asia, Central and South America. From his experience in working with several hundred utilities, Mr. Smith understands the changing internal dynamics of individual systems. Smith has developed several fresh approaches to water conservation needs and to the reduction of unaccounted -for water losses. These techniques are the result of years of diverse hands -on experience. Prior to the establishment of JBS Associates in 1988, Mr. Smith served as National Marketing Director and Western States Manager for the Pitometer Associates. He joined that firm in 1985 when his prior firm, Water Resource Associates merged with the Pitometer Associates. International Assignments • In 1984, Smith served as the Water Loss Advisor to Manila, Philippines on an Asian Development Bank Project through Camp Dresser & McKee, Inc. and continued in that capacity through 1989. • Responsibilities included establishing a system wide regional metering scheme for leakage control, a large meter sizing and application including meter testing, maintenance and replacement. • In 1986, Mr. Smith worked as Meter Application and Sizing Training Consultant for Medellin, Columbia, through Greeley and Hanson Engineers. In addition to meter application, a complete water loss reduction training program was implemented, which included leakage control, zone monitoring, and leak detection equipment and methodology review. • In 1987 and 1988, he served as Training Advisor to San Pedro Sula, Honduras, through the Pitometer Associates. Included was leakage control and meter application and sizing. Meter maintenance, testing and replacement frequencies were established. 12 JBS Associates, Inc. Round Rock. Texas • In 1988, Smith worked as the Meter Sizing Consultant for San Juan, Puerto Rico. The work included a review of production metering, testing for accuracy, installation recommendations and sizing. • In 1992 he was selected to review water loss problems and large meter applications for Wessex Water Plc in the UK. • In 1993 was selected by the Asian Development Bank as a consultant to review the water meter program at Manila Water and Sewerage System (MWSS) , and determine its overall impact on NRW. • In 1994 was selected by Manila Water and Sewerage System as a meter management and NRW consultant. The terms of reference called for a one year assignment with major emphasis on organizational layout and large meter management program including a complete review of all large meters, resizing, testing, installation, and the development of new meter specifications. In addition to large meters, a complete management program was to be set up for small meters, supply meters, and district meters. Also NRW reduction programs were to be set up in each of the new sector offices. • In 1995, selected by International City Managers Association (ICMA) to be part of initial fact finding group for a NRW training project in Bulgaria. • In 1995 was selected by the German Bank KFW to analyze the unaccounted -for Water problems of 14 provincial water systems in the Philippines. Training Seminars • 1981 -1989 - American Water Works Association "Water Loss Reduction" Developed and instructed for AWWA over 100 - one day seminars designed to help water system managers understand water loss reduction techniques and the relative cost - effectiveness of water loss reduction programs. Nine major areas of water loss were covered. • 1985 -1989 - American Water Works Association "Meter Application and Sizing" As a sequel to the Water Loss Reduction program, this seminar discussed in greater detail that portion of unaccounted -for water losses associated with metering. Aspects of meter sizing, installation, testing, and applications of source (production), commercial, indus- trial, and residential meters were presented. • 1988 -1989 - World Bank Seminars (University of North Carolina) Instructed World Bank engineers in the principles of water auditing, water conservation, and distribution system efficiency as they pertain to systems in developing nations. • 1989 - Massachusetts Water Resources Authority This expansion of the AWWA course on water auditing included actual hands -on field training relating to water loss reduction. A series of two -day courses were taught across the Commonwealth. • 1987 -1992 - University of Wisconsin (Water Distribution Course) Presented two -day courses of instruction on water system accountability for engineers and system managers. The program was expanded by the University of Wisconsin and offered in several regional locations across the United States.. 13 ssociates. Inc. Round Rock. Texas • 1991 -1993 - Casper College, Wyoming A series of two -day courses on water system accountability, funded by the Environmental Protection Agency (EPA). • 1991 -1993 - Texas Water Development Board (Training in Water Loss Reduction) Was selected by the Texas Water Development Board to Develop and instruct a series of two -day courses of instruction on water loss reduction techniques at 15 selected locations across the state. Additional organizations sponsoring water auditing and meter auditing programs include: the American Water Works Association and numerous state associations, National Rural Water Association and numerous state associations, Illinois Society of Certified Opera- tors, Indiana Society of Certified Operators, U S Army Corps of Engineers, American Society of Civil Engineers, Harris - Galveston Coastal Subsidence District. Papers • 1986 - AWWA -DSS "Leak Detection and Reduction of Unaccounted for Water ". • 1987 - AWWA -DSS "Reducing Unaccounted -For Water and Increasing Revenue" - Also published in Puerto Rico and North Carolina in 1988 as a part of their respective annual meetings. • 1988 - University of Wisconsin - "Importance of Metering in Controlling Non - Revenue Water • 1989 - University of North Carolina World Bank Seminar - "Developing an Effective Water Loss Reduction Program ". • 1990 - Texas Rural Water Association - "The Metered Ratio - The Great Hoax ?" • 1991- AWWA - National Conference, Philadelphia - "The Water Audit - Cost-Effective Direction? • 1992 - AWWA - National Conference, Vancouver, B.C. - "Establishing An Effective Water Loss Reduction Program" t • 1993 - AWWA Research Foundation - San Jose, Ca - "Leakage Control System" - Part of a cooperative research report between the AWWA Research Foundation and the Japan Water Works Association. • 1994 - Philippine Pipeline - "Which Small Meter is Best for MWSS - Class B or Class C? i 14 ssociates. Inc. Round Rock. Texas JBS Associates. Inc. Round Rock. Tex JAMES A. SCHIELE Vice President Over 20 years' water industry experience in North and South America, and Europe. Employed in both the consultant and manufacturing areas, has provided consulting services, training, technical support and sales activities related to water loss analysis, flow measurement, subsurface pipeline surveys, leak detection instruments and pipe /cable locating instruments. Responsibilities have included project management, water account- ability studies, planning and conducting leak detection surveys, coordination and execu- tion of professional training programs for utility and contractor personnel, product devel- opment and testing as well as demonstration and sales of microprocessor -based leak correlators and instrumentation. Prior to joining JBS Associates, Inc. in 1993, Mr Schiele was employed by Fluid Conser- vation Systems (FCS) of Austin, Texas From 1982 to 1993. The company benefitted from his substantial experience in the field of leak detection and water loss recovery. He has conducted programs for FCS products and services throughout the U.S., Canada, Mexico and Brazil including product development, product demonstrations, personnel training, and supervision and coordination of FCS Leak Survey Services. Papers 1 In 1985 and 1987 he presented the following papers at the AWWA Annual Conference and Exposition: • June 26, 1985 The Value of High Technology Solutions in Control and Maintenance of Water Distribution Systems • June 16, 1987 New Technologies for Operation and Maintenance of Water Distribution Systems � ■ Professional Background: 1993 - Present Mr. Schiele is Vice President and Projects Director at JBS Associates, Inc., of Houston, Texas. This organization specializes in offering consult- ing services for water agencies in the areas of water loss analysis, consumption analysis, flow measurement and leak detection. 1991 to 1993 Technical Services Manager for Fluid Conservation Systems Inc. (FCS) of Austin, Texas. Responsible for organization and function of new Techni- cal Services Department Services provided by this group included: o On -Site Customer Training Programs o Water Accountability Studies o Leak Detection Survey and Map Updating Services o Customer Service and Technical Support 15 JBS Associates. Inc. Round Rock. Tex JBS Associates, Inc. Round Rock, Texas o Product Development and Testing o' Repair Lab. Operations o Manuals and Documentation (including Spanish translations) 1986 to 1990 Regional Manager at FCS, Austin. Responsible for demonstrations, sales and product support of microprocessor -based leak correlators to munici- pal, state and private water agencies as well as consultants. Due to interna- tional background was also responsible for export sales of these products. Worked closely with R & D engineers at Tracor Inc. Austin in product development of new correlator systems. 1981 to 1985 Marketing Representative at FCS, Austin. Developed promotional programs to address water agencies in mid- western states. Programs included on -site presentations and field demonstrations and training programs. Successful establishment of market in this region led to opening of a regional office in the Chicago area in 1985. Also developed leak survey services for FCS customers as option to implementation of in -house programs. Proposed, managed and/or conducted FCS leak surveys throughout the U.S. (1982 -85). 1979 to 1981 Project Manager for Hydrotronic Corporation of America, posted to Lima, Peru, to supervise the leak detection survey undertaken for the Empresa de Saneamiento de Lima (ESAL) on approximately 2,200 Km. of the , city's water distribution system. Successful completion of this survey project and training of local personnel, under extreme field conditions, resulted in the setting up of a permanent in -house leak detection program for the client. 1974 - 1979 Began training in leak detection systems with Hydrotronic (Jersey) Ltd., a U.K. based company, in 1974. For 3 years worked as Field Engineer on numerous leak detection surveys with a wide variety of water systems in Europe, gaining experience in the use of spectrum analysis techniques for detecting and pinpointing leaks, pipe and cable location, map correction, on -site equipment maintenance and training new personnel. Privileged to work side by side with the highly skilled leak detection team of one of Europe's top water utilities (Azienda Acquedotto Municipale, Turin, Italy) for over a year. Some of the European water agencies for whom Mr Schiele conducted loss surveys include: o Azienda Acquedotto Municipale, Turin, Italy o Azienda Municipale Gas e Acqua, Ravenna, Italy o Azienda Acquedotto Municipale, Florence, Italy o Azienda Acquedotto Romano, Rome, Italy o Azienda Acquedotto Municipale, Brescia, Italy o Azienda Municipale, Milan, Italy 16 JBS Associates, Inc. Round Rock. Texas Leak Detection and Correlator Instruction: Mr. Schiele has prepared and conducted thousands of hours of professional training courses for industry personnel as summarized below: Customers for whom Mr. Schiele has conducted leak detection training include: • Contra Costa Water District, Concord, CA • Los Angeles Department of Water & Power, CA • East Bay M.U.D.,Oakland, CA • City of Santa Rosa, CA • Denver Board of Water Commissioners, CO • City of Colorado Springs, CO • South Central Connecticut Regional Water Authority, Newhaven, CT • City of Chicago Bureau of Water, IL • New Jersey American Water Co., NJ • New York City, Bureau of Water Supply, NY • Pennsylvania American Water Co., PA • Pittsburgh Water Authority, PA • City of Philadelphia, PA • Dallas Water Utilties, TX • City of Houston, TX • San Antonio Water System, TX • Sistema de Agua Potable y Alcantarillado, Leon, MEXICO • Companhia de Saneamento de Minas Gerais, Belo Horizonte, BRAZIL • Companhia de Saneamento Basico do Estado de Sao Paulo, Sao Paulo, BRAZIL Educational Background: o Azienda Municipale Gas e Acqua, Pinerolo, Italy o Azienda Acquedotto Municipale, Palermo, Italy o Canal Isabel II, Madrid, Spain o Canal de Santillana, Madrid, Spain Majored in Languages at Walbrook College, London, 1968 -70, and subsequently completed professional studies "in Computer Technology at Control Data Institute, London. Computer and electronics skills proved invaluable for the utilization of advanced leakage control technology. Mr. Schiele's knowledge of water distribution systems, and specifically in the area of water loss recovery, has been acquired through 20 years of practical studies, including 8 years' daily field experience in a wide variety of water systems. Learned to speak Spanish fluently in Argentina during student years. Further enhanced knowledge of the language and water industry related terminology in Spain, Peru, Mexico and Panama. 17 zna • JBS Associates, Inc. Round Rock. Texas Additional details and references are available upon request. Professional References College Station, TX McAllen, TX Brownsville, TX Galveston WCID No. Gastonia, NC Bella Vista, AR Kilgore, TX LFM Engineers, Santa Barbara, CA Pennsylvania- American Bill Luta Water Company Rogers, AR Tom McAlister, Director Seabrook, TX Gary Jones, Director Texas Water Development Board Bill Hoffman University of Wisconsin Dr. Roy Holub at Madison Marshall, TX Cecil Forrester, Director Bill Riley, Superintendent 409 - 764 -3657 Bart Hines, Manager 210- 972 -7000 Lucy Hernandez 210- 982 -6100 1 Ivan Langford, Manager 713- 337 -1576 Ed Cross, Superintendent 704- 866 -6827 Dennis Harmon, Superintendent 501- 855 -3746 Chuck Overbeck, Director 903- 984 -5081 Chuck Lawrance, P.E., V.P. 805 -564 -2441 18 717 -531 -3307 501- 621 -1142 713- 474 -4802 512- 445 -1469 608 - 262 -2061 903 - 935 -4485 DATE: March 11, 1996 SUBJECT: City Council Meeting, March 14, 1996 ITEM: 10C. Consider a resolution authorizing the Mayor to enter into water distribution audit agreement. STAFF RESOURCE PERSON: Jim Nuse STAFF RECOMMENDATION: Water and wastewater rates are established on system operation and debt service costs divided by the billable product. In order to maintain proper rates, regular audits of the water system are recommended. This work will help both the water and sewer system. A presentation was made at the last meeting. An agreement with JBS Assoc., Inc. is attached. Staff recommends JBS Assoc., Inc. for the water distribution audit.