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HomeMy WebLinkAbout10 Leak Correlation study Agenda Item # 10 FFV 41 Public Utility District ACTION To: Board of Directors From: Neil Kaufman Date: June 18, 2008 Subject: Award of a Contract to Perform a Leak Detection and Correlation Study 1. WHY THIS MATTER IS BEFORE THE BOARD Board action is required for expenditures in excess of $15,000. 2. HISTORY In 2005 and 2006, the Water Department reported to the Board regarding the condition of existing water pipelines and the need to pursue a pipeline replacement program. The District subsequently issued a COP in 2006 and dedicated a portion of those funds for the pipeline replacement program. Pipeline construction projects have been undertaken during 2006, 2007 and 2008 as part of this program. Previous presentations by the Water Department have grouped pipelines into three categories regarding replacement needs (Priority 1, Priority 2 & Priority 3). There is about $6 million in funds remaining from the COP issue for pipeline replacement work to be performed in 2009 and 2010. With those funds, all of the Priority 1 work can be completed along with a portion of the Priority 2 pipelines. 3. NEW INFORMATION The General Manager directed the Water Department to retain an outside firm to perform a leak detection and correlation study. The study will cover about 100 miles of water pipe, which includes all of the water pipe constructed prior to 1985 that has not already been replaced. The purpose of the study is to confirm that the remaining Priority 1 pipelines previously identified and presented to the Board are actually the pipelines experiencing the most leakage. The study will also allow the Water Department to assess and re-categorize the Priority 2 and Priority 3 pipelines. The Water Department then prepared a RFP that was approved by the General Manager and issued on May 20, 2008. Copies of the RFP were requested by six firms. Four proposals were received in response to the RFP from: • American Leak Detection • HD Utility Services Group New York Leak Detection Water Systems Optimization A staff committee of three members was selected, and the proposals were evaluated based on the following criteria: Project Approach Experience and qualifications of the firm with similar work Experience and qualifications of the project personnel Past work performance and references • Cost The final scoring of the firms, including technical, cost, and total scores are as follows: Firm Technical Score Cost Score Total Score American Leak Detection 64 5 70 HD Utility Services Group_ 80 15 95 New York Leak Detection 76 12 88 Water Systems O timization 74 1 5 1 79 Considering that HD Utility Services Group was the highest ranked firm on both a technical and cost basis, it is recommended that it be awarded the contract. The price quotation from HD Utility Services is $197.80 per mile for the leak survey work, along with a mobilization charge of $300 for a total of $20,080. 4. FISCAL IMPACT The anticipated cost of the study is $20,080. The cost per mile given above assumes a certain level of leak correlation is performed. However, the Water Department is concerned that additional time and effort may be required to locate all of the leaks in areas that are known to be in poor condition. Therefore, authorization for expenditure of up to $24,000 is requested in order to provide some contingency. The proposed funding source for this study is the Water Department 2006 COP. 5. RECOMMENDATION 1) Award a contract for a leak detection and correlation study in an amount not to exceed $24,000. 2) Authorize the transfer of up to $24,000 from COP funds to the Water Department General Fund to cover the cost of the contract. Ed Taylor Michael D. Holley Water Utility Manager General Manager