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HomeMy WebLinkAboutAGMT - Municipal Water District of Orange County (MWDOC) (Water Loss Control)WATER LOSS CONTROL SHARED SERVICES AGREEMENT This Water L ss Control Shared Services Agreement ("Agreement") is made and entered into as of 2019, by and between the Municipal Water District of Orange County ("MW OC") and City of Seal Beach ("Participating Agency"). MWDOC and Participating Agency may be collectively referred to as "Parties" and individually as a "Party." RECITALS A. MWDOC offers its member agencies ("Member Agencies") the benefits of certain programs called choice services, which are services that MWDOC makes available to Member Agencies that they may elect to participate in or not ("Choice Services"). B. If Member Agencies elect to receive certain Choice Services, they execute an agreement with MWDOC that sets forth the terms and conditions for such Choice Services. C. Through these agreements MWDOC offers cost sharing and shared services components that allow Member Agencies to obtain economies of scale and save money on such Choice Services. D. With input from its Member Agencies, MWDOC prepared a Water Loss Control Shared Services Business Plan, which proposed five water loss control shared services that would be provided to Member Agencies by MWDOC staff and, as necessary and as determined by MWDOC, third party vendors/contractors ("Contractor or Contractors"). E. Participating Member Agencies may elect which of the shared services, if any, they wish to receive from MWDOC by completing an initial election form with this Agreement. The initial election form is attached as Exhibit A to this Agreement. F. At the end of each year, the Participating Agency may change the shared services that it elects to receive for the following year by completing an annual election addendum to this Agreement. G. Annual election addendums may also be used to tailor the types and amounts of shared services that each participating Member Agency will receive, as well as the costs. H. The Parties desire to enter into this Agreement whereby MWDOC will provide the water loss control shared services that the Participating Agency elects to receive on the terms and conditions described in this Agreement. TERMS 1. Scope of Services. MWDOC will provide to Participating Agency the water loss control services that are identified in the initial election form attached as Exhibit A and, unless otherwise provided in Exhibit A, that are consistent with the description in the Water Loss Control Shared Services Business Plan attached as Exhibit B ("Services"). The actual scheduling of Services shall be done only upon request of the Participating Agency. The Parties agree that MWDOC may provide the Services by utilizing MWDOC staff or Contractors as determined by MWDOC. 2. Term of Agreement. The term of this Agreement shall be from July 1, 2019 to June 30, 2024. The term will automatically renew for another five years unless either of the Parties terminate the Agreement pursuant to Section 6. 3. Annual Election Addendums. Prior to July 1 of each year of the Agreement and consistent with the requirements of this Section, Participating Agency may change the shared services that it elects to receive for the following fiscal year (July 1 — June 30) by completing an annual election addendum, which will replace and become a new Exhibit A to this Agreement ("Election Addendum"). The Election Addendum with the elections for the following fiscal year must be submitted to MWDOC prior to the end of the third quarter of the previous fiscal year. The Election Addendum must be executed by the Parties prior to the start of the next fiscal year for it to take effect. The Election Addendum may contain terms that are different than those in the initial election form, including adjustments to the types of services and the addition of new shared services as they become available. 4. Pricing and Payment. Participating Agency shall pay MWDOC for the Services performed pursuant to this Agreement in the unit cost amounts for each type of elected shared service as set forth in Exhibit A. The unit cost amounts in Exhibit A may be adjusted each year by MWDOC in MWDOC's discretion. MWDOC will provide notice to Participating Agency of any changes to the unit cost amounts for the next fiscal year by March 1 of the previous fiscal year, and such adjusted costs shall be reflected in the Election Addendum. With respect to Services that are provided by Contractors who are under contract with MWDOC, MWDOC reserves the right to change the unit cost for such Services if there is a change in unit cost by the Contractor, provided, however, that MWDOC gives the Participating Agency no less than sixty (60) days notice of such change, during which period the Participating Agency may elect to terminate such Services from the Election Addendum. In addition, Participating Agency is not obligated to request any Services and is only required to pay for Services performed by MWDOC at the request of Participating Agency. 5. Billing Procedure and Payment. Within thirty (30) days of receiving the Exhibit A, MWDOC shall invoice Participating Agency for the full unit cost of the Services that have been chosen by the Participating Agency for the upcoming fiscal year. Participating Agency shall pay MWDOC within thirty (30) days of receipt of the invoice. In the event that there is a subsequent change in the scope of the Services that were elected in Exhibit A, MWDOC will provide a revised invoice for such change and in the event that the change results in a credit to the Participating Agency, then the Participating Agency will have the option to apply the credit to the annual invoice for the next fiscal year or to be issued a refund. 6. Termination. Either Party may terminate this Agreement upon thirty (30) days written notice to the other. In such an event, the Parties shall be responsible to each other for any obligations that have already been incurred prior to the termination date. 7. Qualifications. MWDOC represents and warrants to Participating Agency that MWDOC and its Contractors have the qualifications, experience, equipment, and licenses, necessary to properly perform the Services in a competent and professional manner. MWDOC will cooperate with each Participating Agency to enforce any warranty or other contractual claims arising out of the failure of a Contractor to perform Services in accordance with the terms of this Agreement. 8. Standard of Care. MWDOC's services will be performed in accordance with generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised to perform the Services. MWDOC will require that all Contractors provide the same level of professional qualification and skill. 9. Accounting. MWDOC shall, for a reasonable time, keep accurate and detailed records of the Services performed and the financial details in connection with such Services, including all accounting books and records related to any payments to Contractors (collectively, the "Records"). Any and all Records must be maintained in accordance with generally accepted accounting principles that are applicable to local government agencies in the State of California and must be sufficiently complete and detailed so as to permit an accurate evaluation of the Services provided by MWDOC under this Agreement. MWDOC shall give Participating Agency, during normal business hours, reasonable access to such Records. 10. Indemnification. MWDOC agrees to indemnify and hold harmless Participating Agency, its Board, members of the Board, employees, and authorized volunteers from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death (collectively, "Claims"), in any manner arising out of any negligent acts or willful misconduct of MWDOC, its agents and employees in connection with the provision of Services. MWDOC further agrees that it will cause all Contractors to indemnify and hold harmless Participating Agency from any and all Claims arising out of the negligent acts or willful misconduct of the Contractor, its agents and employees, and Participating Agency agrees that it will look solely to the Contractor for such Claims, provided, however, that MWDOC will act as the agent of the Participating Agency to enforce the terms of the indemnity with Contractor and make any related insurance claims with respect to the insurance coverage provided by Contractor. If MWDOC fails to obtain a contractual indemnity and insurance coverage from a Contractor, then MWDOC will be responsible to indemnify and hold harmless the Participating Agency for any Claims. Participating Agency agrees and acknowledges that MWDOC is not responsible for the maintenance and quality of any of Participating Agency's facilities, and Participating Agency is responsible for any costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, arising from such. 11. Insurance. MWDOC agrees to procure and maintain, at MWDOC's expense, insurance in amounts as described in Exhibit C. MWDOC shall require any third party Contractors to carry the same policies and limits of insurance that MWDOC is required to maintain pursuant to this Agreement, unless otherwise approved in writing by Participating Agency. 12. Independent Contractor. MWDOC shall act as an independent contractor in the performance of the Services provided for in this Agreement and shall furnish such Services in MWDOC's own manner and method, and in no respect shall MWDOC or any of its agents be considered an agent or employee of Participating Agency. No provisions of this Agreement shall be intended to create a partnership or joint venture between MWDOC or any of its agents and Participating Agency, and neither Party shall have the power to bind or obligate the other Party, except as expressly set forth in this Agreement. 13. Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose. MWDOC: Robert J. Hunter, General Manager Municipal Water District of Orange County 18700 Ward St. P.O. Box 20895 Fountain Valley, CA 92728 Participating Agency: Seal Beach City Clerk City of Seal Beach 211 8th Street Seal Beach, CA 90740 Such notice shall be deemed made when personally delivered or sent via commerical overnight courier and shall be effective upon receipt. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. 14. Jurisdiction and Venue. In all matters concerning the validity, interpretation, performance, or effect of this Agreement, the laws of the State of California shall govern and be applicable. The Parties hereby agree and consent to the exclusive jurisdiction of the courts of the State of California and that venue of any action brought hereunder shall be in Orange County, California. 15. Counterparts and Facsimile. This Agreement may be executed by the Parties in counterparts, which counterparts shall be construed together and have the same effect as if all the Parties had executed the same instrument. Counterpart signatures may be transmitted by facsimile, email, or other electronic means and have the same force and effect as if they were original signatures. All parties have participated in the drafting of this Agreement. 16. Severability. If any provision of this Agreement shall be held illegal, invalid, or unenforceable, in whole or in part, the legality, validity, and enforceability of the remaining provisions shall not be affected thereby. 17. Entire Agreement. This Agreement contains the entire agreement of the Parties relating to the subject matter hereof; and the Parties have made no agreements, representations, or warranties, either written or oral, relating to the subject matter hereof that are not set forth herein. Except as provided herein, this Agreement may not be modified or altered without prior written approval from both parties. 18. Authority to Execute. Each Party represents and warrants to the other Party that all necessary action has been taken by such Party to authorize the undersigned to execute this Agreement and to bind it to the performance of its obligations hereunder. 19. Incorporation of Recitals. The Recitals and section titles set forth herein are incorporated herein and are an operative part of this Agreement. IN WITNESS WHEREOF, the Parties have hereunto affixed their names as of the day and year thereinafter written, which shall be and is the effective date of This Agreement. MWDOC: in Robert J. HunVm�Gerye�iGanager Municipal Water Dis nct of Orange County Date: Approved as to Form By: Joseph Byrne, General Counsel Date: Participating Agency: By: Name: Jit I Title: Agency: City of Seal Beach Approved as to For By: Name: Craig A. Steele City Attorney, City of Seal Beach Date: June 25, 2019 EXHIBIT A Municipal Water District of Orange County Water Loss Control Shared Services Initial Election Form Fiscal Year 2019-20 Year 1 Water Loss Control Shared Services Agency: 01 (+L4 C1 Se J 3C�4 Contact Person: I SI (T� Contact E-mail: C'V Contact Phone: ex 13.3 Task 1: 1 Water Audit Validation Water audit validation will be conducted at Level 1, according to the methodology established in Water Research Foundation project 4369: Level 1 Water Audit Validation Guidance Manual. Water audit validation aims to identify and appropriately correct for inaccuracies in water audit data and application of methodology. Furthermore, validation also evaluates and communicates the uncertainty inherent in water audit data. To accomplish these goals, MWDOC's validation shared service will follow the steps published in the Water Research Foundation Level 1 Water Audit Validation Guidance Manual. The process will include: • Review the water audit and supporting documentation. • Review performance indicators for evidence of inaccuracy. • Review audit inputs and data validity grades and confirm correct application of methodology in a Level 1 validation interview. Adjust inputs and data validity grades, if necessary. • Review performance indicators again for evidence of persisting inaccuracy. • Document results. MWDOC's validation shared service will also employ the California -specific additional guidance developed by the California Water Loss Technical Assistance Program and subsequently taught in the Water Audit Validator (WAV) certificate course. Validation results will be documented in a format acceptable to the Department of Water Resources. Templates for this format have been published by the California - Nevada section of the American Water Works Association on their WAV Certification webpage. Deliverables include: • Level 1 Validation Summary Notes • Certified Validation Report (signed by validator) Water Audit Validation is a Core service provided by MWDOC to its $0.00 member agencies at no cost. The Cities of Anaheim, Fullerton, and Santa Ana may access MWDOC's Water Audit Validation service for a fee of $991 per validation. Task 2: 1 Meter Accuracy Testing Customer meter accuracy testing enables an agency to measure a retail meter's performance and, consequently, the throughput that the meter fails to register. By measuring a meter's inaccuracy, an agency can understand financial loss due to meter inaccuracy and can develop a plan to manage the meter performance within their system. Customer meter tests will be conducted in accordance with the methodology set forth in American Water Works Association manual M6, Water Meters — Selection, Installation, Testing, and Maintenance. The stipulations in manual M6 include: • Specific low, medium, and high flow rates for each meter type and size • Minimum test volume by flow rate and meter size • Generally acceptable accuracy limits for new and repaired meters M6 also enumerates test procedures for laboratory tests and field tests that MWDOC staff and/or contractors will be required to follow. Agencies can choose between two customer meter accuracy testing service providers: McCall's Meters, Inc. or Westerly Meter Service Company. These meter accuracy testing firms were selected through a Request for Proposals process conducted by MWDOC. This RFP process utilized a review panel, including member agency staff, who recommended that both meter accuracy service providers be available for agencies to choose from. The review panel concluded that both companies were capable of providing the desired services, had similar proposed costs and, together, could complete the work in a timelier manner. The Meter Accuracy Testing (MAT) Worksheet at the end of this document summarizes the fees for each meter accuracy testing service provider. Note that the fees are slightly different between providers. As a result, each service provider has its own MAT Worksheet. Agencies will need to: • Select the meter accuracy testing company of their choice, • Identify the number and sizes of meters to be tested (green data entry cells), and • Estimate the number of meetings (McCall's) or hours and mileage (Westerly) for meetings with the selected company. This worksheet should be used to calculate the total cost for meter accuracy test services for your agency. The cost estimate calculated in the MAT Worksheet should be entered into the shaded cell immediately below. Water Systems Optimization, Inc. (WSO) is available to assist agencies in quantifying the number and sizes of meters to be tested as part of Task 3: Component Analysis of Apparent Losses. Small meter (5/8 — 2 inch) testing will require agencies to pull the meters from the field and deliver them to the selected meter testing company. Meter testing company locations are provided below. Large meters (3 inch and larger) will be tested in-situ. McCall's Meters, Inc. 1498 Mesa View Street Hemet, CA. 92543 (951) 654-3799 Deliverables include: • Meter accuracy testing results • Warehousing of test results data Westerly Meter Company 403 East Carlin Street Compton, CA. 90222 (310) 637-9000 $346 MWDOC Administrative Fee = $346 $ Input the total dollar amount calculated in the MAT Worksheet. $ Task 2 Total Task 3a: I Distribution System Leak Detection Leak detection will be conducted using a comprehensive acoustic survey, meaning that leak detection technicians will sound all available appurtenances regardless of spacing distances. The following protocols will be adopted for leak detection: • Sounding points: Physical contact and sonic leak sound amplification will occur for each hydrant, available valve, and customer service connection. • Sonic ground listening (hard cover): When normal contact points are not available or cannot be created within a reasonable distance, sonic ground listening devices will be used by making ground contact directly over the pipe at intervals no greater than six (6) feet when ground cover is pavement, concrete, or a similar hard surface. If excessive ambient noise precludes the effectiveness of the ground listening device in an area during daytime hours, then survey will be considered during nighttime hours. Such situations will be pre -approved with retail agency staff before any night surveying is undertaken. • Sonic ground listening (soft cover): When normal ground contact points are not available and ground cover is not a hard surface, probe rods will be used at 10 -foot intervals. A sound amplifier will be used on probe rods. Probe rods will be driven into the ground a minimum of six (6) inches directly over the pipe where ground conditions allow. • Verification: All indications of leaks found during initial survey will be verified a second time, after which the leak will be pinpointed with a computer-based leak sound correlator whenever possible. Pinpointing leak locations through interpretation of sound intensity, whether by ear, decibel metering, or comparable methods, will not be used when contact points are available for access with a computer-based leak sound correlator. MWDOC staff will perform distribution system leak detection at a cost of $278 per mile of distribution main surveyed. Deliverables include: • Distribution System Leak Detection Plan • Weekly progress reporting and leak verification $ D Task 3a total = miles X $278 Task 3b: Suspected Leak Survey MWDOC staff will perform a suspected leak survey at a cost of $347 per leak investigation. The methodology to detect suspected leaks will employ the same process described in Task 3a. Deliverables include: • Suspected leak consultation • Field leak investigation • Written report and pinpointed leak location $ (� Task 3b Total = number of suspected leaks X $347 Task 4: 1 Distribution System Pressure Survey The methodology used for pressure surveying depends on the survey goal of: 1) Average zonal and system pressure survey, or 2) Pressure transient survey using high frequency logger. Methodology must be agreed upon with each agency before surveying begins. The methodology to be determined includes: • Logger settings (e.g. sampling and recording frequencies) • Logger deployment locations • Logger deployment durations • Analysis of data after logger retrieval 1) Average Zonal and System Pressure Survey Pressure loggers can be deployed to evaluate the range of pressures in a system or zone, which can then be used to estimate average system or zonal pressure. The survey methodology outlined below provides a template with which to begin planning a pressure survey that evaluates pressure ranges and averages (a "standard survey"). Please note that this methodology serves as a starting point that must be customized to the specific infrastructure being studied. Logger Settings Logger settings for a standard survey must balance data collection and storage frequency with the duration of the desired logging period. Since there is a trade-off between survey length and recording interval, longer pressure surveys must be programmed with a less -frequent recording interval. Because near -instantaneous pressure fluctuations are not the primary focus of a standard survey, pressure loggers can be programmed to sample and record less frequently than in a transient survey. The Global Water PL200-H Hydrant Loggers that MWDOC owns can record more than 81,000 pressure readings. Therefore, for a survey length of one week, a maximum of 8 readings per minute can be recorded without exceeding the logger's capacity. As a conservative starting point, pressure loggers will be programmed according to the specifications below. If survey requirements dictate a different sampling and recording frequency, it can easily be accommodated by adjusting these settings. • Sampling frequency: 0.5 seconds • Recording frequency. 10.0 seconds Logger Deployment Locations In a standard survey, loggers must be deployed across the full range of elevations in the zone being studied, to the extent possible given hydrant locations and the number of loggers available for the survey. Pressure loggers should be deployed at the following sites, in this order of preference: • As close to the downstream outlets of pressure sources as possible (e.g., after a pressure -reducing valves outlet) • As close to the upstream inlets of pressure -altering infrastructure as possible (e.g., before a pump intake at the bottom of a zone) • Distributed across the zonal elevation profile, as equally spaced across the anticipated HGL as possible given possible hydrant locations Loggers must be installed on standard 2 '/-inch NST (NH) fire hydrant ports. If 2 '/- inch ports are not available, adaptive connectors must be purchased. Loggers must also be locked to hydrants using the provided security equipment. Logger Deployment Durations Loggers should be deployed for at least 24 hours to capture a full diurnal pressure cycle. As a starting point for planning, logger deployment should be planned to capture a full seven days, in case weekend use patterns and alternating -day irrigation schedules affect pressure dynamics. Analysis of Pressure Data Pressure loggers record time series data. Standard time series analyses could be considered, depending on survey goals. Pressure patterns should be assessed first by logging location and then across the full logged zone. Possible treatments and analyses include: By logging location • Data cleaning to identify unusual values (e.g. outliers, negative pressures) • Minimum, maximum, and average pressures • Diurnal and/or weekly pressure patterns • Pressure regulating infrastructure functionality By zone • Pressure change propagation across a zone • Pressure patterns compared to leak records • Average zonal pressure (the average of each location average, assuming loggers are reasonably distributed across the full elevation and corresponding pressure profile) • Potential excess and/or inadequate pressure • Hydraulic model verification 2) Pressure Transient Survey A pressure transient survey identifies instantaneous, damaging swings in pressure introduced by infrastructure malfunction, sudden and significant changes in demand, or rapid hydrant operation. Pressure transients move quickly and can only be identified with a high sampling frequency. Logger Settings To identify transients, loggers must sample a data point at least every 0.25 seconds. The Global Water PL200-H Hydrant Loggers that MWDOC owns can sample every 0.1 seconds. As a starting point, pressure loggers used for transient identification will be programmed according to the specifications below. • Sampling frequency: 0.1 seconds • Recording frequency. 5.0 seconds These specifications allow for approximately 4.5 days of recording. Logger Deployment Locations At minimum, loggers should be deployed immediately upstream and downstream of pressure regulating infrastructure suspected of transient production. Loggers may also be deployed at a distance from the downstream outlet of pressure regulating infrastructure to assess the distance of transient propagation. If a leak cluster has been observed, loggers may be deployed near the leak cluster epicenter and encircling the leak cluster to study whether pressure transients are contributing to infrastructure failure. Logger Deployment Durations Loggers must be deployed for a period that captures the full range of pressure regulating infrastructure operation. For example, if a tank is filled once a week, then pressure loggers should be deployed for at least a week. For surveys lasting longer than 4.5 days, the logger recording interval will need to be longer than 5.0 seconds to ensure adequate storage throughout the recording period. Analysis of Pressure Data Pressure data loggers record time series data. Standard time series analyses could be considered, depending on survey goals. Possible treatments and analyses include all the treatments and analyses suggested previously for a standard survey. Additional transient -specific analyses are: • Transient identification using a relative or absolute amplitude threshold o Absolute: transient amplitude o Relative: ratio of transient amplitude to average location pressure • Temporal transient alignment to study the direction and speed of transient propagation MWDOC staff will perform a distribution system pressure survey at a cost of $4,141 er 8 to er survey. $ 6 Task 4 Total = number of 8 logger surveys X $4,141. Task 5: I Distribution System Flushing (NO -DES) Flushing with a Neutral Output Discharge Elimination System (NO -DES) unit will consist of the following steps: • Deploy: Mobilize and set-up NO -DES truck at flushing location, between two fire hydrants. • Connect: Connect a hose from the filtering system's inlet point to one hydrant; then, connect a second hose from the filtering system's outlet point to the other, hydrant. • Create a loop: Open both fire hydrants, allowing the hoses and filters to be filled. This will create a temporary above -ground loop in the water distribution system. • Circulate: A large pump on the NO -DES unit circulates water through the loop at the desired flushing velocity, scouring the water main to remove debris. • Filter and purify: Contaminants and biofilms are removed by the NO -DES filters. If needed, a small amount of chlorine may be added to increase chlorine residual during the process. • Shut down: When the entire section of water main in the targeted flush zone has been filtered and all turbidity meters are below 1 NTU, shut down the system, close hydrants, and remove hoses. For more detailed information regarding NO -DES Standard Operating Procedures, follow this link: _haps://www.mwdoc.com/wp-content/uploads/2019/04/NO DES SOP 2019.pdf Agencies can choose between two Distribution System Flushing service providers. - Reliable Water Solutions, LLC. or ValveTek Utility Services, Inc. These service providers were selected through a Request for Proposal Process conducted by MWDOC. This RFP process utilized a review panel, including member agency staff, who recommended that both flushing service providers be available for agencies to choose from. Both contractors are offering identical pricing for flushing services as shown in the worksheet. The Distribution System Flushing (DSF) Worksheet provided at the end of this document summarizes the fees for each flushing service provider. Agencies will need to select the flushing service provider of their choice and identify the number of days of flushing services they need (green data entry cells). This Worksheet should be used to calculate the total cost for distribution flushing services for your agency. The cost estimate calculated in DSF Worksheet should be entered into the shaded cell immediately below. Reliable Water Solutions, LLC. Ohm Kongtang, Managing Director 22421 Barton Road, No. 526 Grand Terrace, CA. 92313 (909) 645-6441 Deliverables will include: • Flush Plan and Schedule ValveTek Utility Services, Inc. Jeff Favina, President 16 Interhaven, Avenue North Plainfield, NJ. 07060 (347) 739-4674 • System Flushing • Weekly water quality and progress reporting $1,373 MWDOC Administrative Fee = $1,373 $ Flushing Services $ Total Date: ' � � j� Date: By. By. DA V T -2 - 2 -- General General Manag Title: b6o'4e- MunicipalWater District of Orange County Agency: &�—1 �c� EXHIBIT B MUNICIPAL WATER DISTRICT OF ORANGE COUNTY Water loss Control Shared Services Business Plan Staff Contact: Joseph M. Berg Director of Water Use Efficiency ibera@mwdoc.com (714) 593-5008 Contents ExecutiveSummary .......................................................................................................................................6 Background...............................................................................................................................................6 RetailAgency Support ............................................................................................................................... 6 ProposedServices and Pricing..................................................................................................................6 ProposedStaffing......................................................................................................................................8 Partnerships.............................................................................................................................................. 9 Contracting................................................................................................................................................ 9 Water Loss Control Shared Services Opportunity......................................................................................11 SharedServices Introduction..................................................................................................................11 Factors Driving MWDOC's Water Loss Control Shared Services.............................................................11 MWDOC's Current Technical Assistance Program......................................................................................11 WaterLoss Control Work Group.............................................................................................................12 One -on -One Technical Assistance..........................................................................................................12 Development of a Water Loss Control Shared Services Business Plan...................................................13 Needs Assessment (Gap Analysis)..............................................................................................................14 Annual Water Balance Validation...........................................................................................................14 Customer Meter Accuracy Testing..........................................................................................................15 Distribution System Leak Detection........................................................................................................16 Distribution System Pressure Surveys....................................................................................................18 DistributionSystem Flushing..................................................................................................................18 Summary.................................................................................................................................................19 Solution — Shared Water Loss Control Services.......................................................................................... 21 Opportunity No. 1: Water Balance Validation........................................................................................21 Description.......................................................................................................................................... 21 Context................................................................................................................................................ 21 Methodology....................................................................................................................................... 22 EquipmentRequirements...................................................................................................................22 StaffRequirements.............................................................................................................................22 Opportunity No. 2: Meter Accuracy Testing...........................................................................................23 Description.......................................................................................................................................... 23 Context................................................................................................................................................ 23 Methodology....................................................................................................................................... 25 EquipmentRequirements...................................................................................................................25 StaffRequirements.............................................................................................................................26 FundingMechanism............................................................................................................................27 Opportunity No. 3: Distribution System Leak Detection........................................................................ 27 Description.......................................................................................................................................... 27 Context................................................................................................................................................ 27 Methodology....................................................................................................................................... 28 EquipmentRequirements...................................................................................................................29 StaffRequirements.............................................................................................................................30 FundingMechanism............................................................................................................................30 Opportunity No. 4: Distribution System Pressure Surveys.....................................................................30 Description.......................................................................................................................................... 30 Context................................................................................................................................................ 31 Methodology....................................................................................................................................... 31 EquipmentRequirements...................................................................................................................32 Staff Requirements FundingMechanism............................................................................................................................33 Opportunity No. 5: Distribution System Flushing..................................................................................33 Description.......................................................................................................................................... 33 Context................................................................................................................................................ 33 Methodology....................................................................................................................................... 34 EquipmentRequirements...................................................................................................................34 StaffRequirements............................................................................................................................. 35 Summaryof Solutions.............................................................................................................................36 Private Sector and MWDOC Cost Comparisons..........................................................................................36 WaterBalance Validation.......................................................................................................................37 Distribution System Leak Detection........................................................................................................37 Distribution System Pressure Survey......................................................................................................38 Conclusions............................................................................................................................................. 39 Executionand Implementation...................................................................................................................39 TargetMarket......................................................................................................................................... 39 4 Core and Choice Funded Shared Services...............................................................................................40 In -House Staff and Contractor -Provided Shared Services......................................................................40 Staffing Plan and Organizational Structure.............................................................................................41 StaffingPlan........................................................................................................................................41 Organizational Structure.....................................................................................................................43 PhysicalLocation.....................................................................................................................................43 Equipmentand Training..........................................................................................................................43 InitialEquipment Needs......................................................................................................................43 Ongoing Equipment or Staff -Related Costs........................................................................................44 SharedServices Pricing...........................................................................................................................44 Promotion...............................................................................................................................................45 Water Loss Control Shared Services Agreement....................................................................................45 Timeline................................................................................................................................................... 46 Technical Advisory Committee...................................................................................................................46 StrategicAlliances.......................................................................................................................................47 State Agencies and Policy Development.................................................................................................47 WaterSystems Optimization..................................................................................................................47 Private Sector Service Providers.............................................................................................................47 NeighboringAgencies.............................................................................................................................48 GrantFunding.........................................................................................................................................49 ExitStrategy................................................................................................................................................ 49 Appendix 1: Retail Agency Shared Services Survey....................................................................................50 Appendix 2: Shared Services Survey Responses.........................................................................................56 Appendix3: Job Descriptions......................................................................................................................73 Appendix 4: Shared Services Agreement....................................................... Errorl Bookmark not defined. Executive Summary Background In February 2018, the MWDOC Board authorized staff to explore offering water loss control shared services directly from MWDOC to Orange County retail agencies. MWDOC staff have developed this Water Loss Control Shared Services Business Plan for review by both the retail agencies and the Board. MWDOC's shared services would provide retail agencies flexible and cost effective access to specific water loss control technologies and expertise to improve water loss within their systems under a partnership with MWDOC, the retail agencies, and the Water Loss Control Work Group. Demand for services beyond what MWDOC is able to provide could be supplied by the private sector with MWDOC's facilitation to reduce costs through an economy of scale. MWDOC could tailor shared services to specifically meet the needs of retail agencies both large and small, with sharing of services and equipment to minimize the potential for stranded assets. Water loss control shared services are particularly timely and appropriate because: • Senate Bill 555 (2015) requires annual validated water loss reporting and the enforcement of water loss targets that will be established in 2020. • Senate Bill 606 and Assembly Bill 1668 require that agencies live within an annual water supply budget that includes distribution system water loss. • MWDOC has facilitated a Water Loss Control Work Group since 2015, and the Work Group has requested the provision of water loss control shared services. • Through grant funding, MWDOC has recently acquired leak detection and pressure surveying equipment, and having water loss control staff would improve the effectiveness of this equipment's application. • The Water Loss Control Work Group has provided valuable information for MWDOC staff to utilize in providing feedback to the State Water Resources Control Board to help guide compliance requirements. Retail Agency Support To gauge retail agency support for water loss control shared services, MWDOC staff distributed a survey asking for anticipated participation. The survey captured broad support for a variety of water loss control shared services. At least half of MWDOC's retail agencies reported that they would be "likely" or "highly likely" to access each of the proposed shared services. Proposed Services and Pricing MWDOC staff propose five shared services, initially priced as listed in the Table 1. Each of these costs is between half to two-thirds of the cost of the same service provided by the private sector. Table 1: Initial shared services pricing Shared Service Provider Unit Cost Water audit validation MWDOC staff $840 per validation Customer meter testing Outside vendor $168 administrative fee * Distribution system leak detection MWDOC staff $207 per mile Suspected leak survey MWDOC staff $259 per suspected leak Pressure survey MWDOC staff $3,360 per survey NO -DES flushing Outside vendor $840 administrative fee * * Unit costs for meter testing and system flushing only include administrative costs for MWDOC staff to facilitate contractor -provided shared services. MWDOC staff also propose that shared services be implemented in two phases to ensure that the volume of services and investment are proportional to retail agency demand. The implementation plan is mapped out in Table 2. Depending on demand for the service, MWDOC staff may evaluate the potential for customer meter testing and NO -DES distribution system flushing to be brought in-house. Should staff determine that bringing these services in-house is feasible, a full analysis will be completed and presented to the Board for consideration. Table 2: Five-year shared services implementation plan Shared Service Year I FY 2019-20 Year II FY 2020-21 Year III FY 2021-22 Year IV FY 2022-23 Year V FY 2023-24 Water Audit MWDOC Staff MWDOC Staff MWDOC Staff MWDOC Staff MWDOC Staff Distribution System MWDOC Staff MWDOC Staff MWDOC Staff MWDOC Staff MWDOC Staff Validation MWDOC Staff MWDOC Staff MWDOC Staff MWDOC Staff MWDOC Staff Pressure Surveying Outside Vendor - Customer Meter Outside Outside Outside Outside Vendor - Outside Vendor Flushing Select Vendor Vendor Vendor Consider or MWDOC Staff Accuracy Testing Vendor Vendor Vendor MWDOC Staff or MWDOC Staff MWDOC Staff Distribution System Leak Detection MWDOC Staff MWDOC Staff MWDOC Staff MWDOC Staff MWDOC Staff Distribution System MWDOC Staff MWDOC Staff MWDOC Staff MWDOC Staff MWDOC Staff Pressure Surveying Distribution System RFP Process to Outside Outside Outside Vendor - Outside Vendor Flushing Select Vendor Vendor Vendor Consider or MWDOC Staff MWDOC Staff 7 Proposed Staffing To provide these five shared services to meet demand reported by retail agencies in the shared services survey, MWDOC staff propose to hire two additional staff members as defined in Table 3. Staff responsibilities and estimated time allocations are highlighted in the table on the following page. When policy support and overhead are considered, 1.81 to 2.26 full-time equivalent (FTE) employees are supported. Table 3: Proposed water loss control shared services staffing Position and Responsibilities Funding Mechanism Staffing Need (Low) Staffing Need (High) Water Loss Control Programs Supervisor 1.03 1.19 Level 1 water audit validation Core 0.10 0.14 Customer meter accuracy testing Choice 0.09 0.09 Distribution system pressure surveys Choice 0.32 0.44 Distribution system flushing Choice 0.22 0.22 Water loss policy development Core 0.20 0.20 Overhead (holiday, sick & vacation time) Core 0.10 0.10 Leak Detection Technician * 0.78 1.07 Distribution system leak detection Choice 0.68 0.97 Overhead (holiday, sick & vacation) Core 0.10 0.10 Total 1.81 2.26 * excludes suspected leak investigations. The proposed Water Loss Control Program Supervisor and Leak Detection Technician would report to the Director of Water Use Efficiency, as shown in Figure 1. 8 0 Water Use Efficiency Water Use Efficincy Intern Intern 0 M Figure 1: Water loss control shared services organizational structure Partnerships To support MWDOC's water loss control shared services program, partnerships with subject matter experts, state agencies, and potential funders would be developed, including: • California Department of Water Resources • California State Water Resources Control Board • United States Bureau of Reclamation • Water Systems Optimization, Inc. • Private sector service providers • Neighboring agencies Contracting Agencies choosing to access MWDOC's water loss control shared services will be required to sign a master shared services agreement and annual shared services election exhibits. This agreement will initially have a ten-year term. Annual exhibits to the shared services agreement will be used to define what shared services will be accessed each year for each agency. Exhibits will allow for annual adjustments to the types of services to be accessed, fees to be charged for services, and the addition of new shared services as they become available. This same agreement and exhibit structure have been used effectively for the last three years for MWDOC's water loss control technical assistance program. Agencies will be asked to make their annual shared services elections in the third quarter of each fiscal year. This will allow agencies time to budget for the services within their normal budget cycle and will Z allow MWDOC staff time to schedule and manage workloads in the coming year. Agencies may need to supplement their election of services partway through the year, which can be accommodated by submitting an additional exhibit defining the additional services. Supplemental exhibits will be accepted as staffing and contract services availability permit. 10 Water Loss Control Shared Services Opportunity Shared Services Introduction A shared service is the provision of a service by one part of an organization or group, where that service has previously been provided, by more than one part of the organization or group. The funding and resourcing of the service are shared, and the original supplying department effectively becomes an internal service provider. The key here is the idea of 'sharing' within an organization or group. Shared services are more than just centralization or consolidation of similar activities in one location. Shared services can mean running these service activities like a business and delivering services to internal or external customers at a cost, quality, and timeliness that is competitive with alternatives. The Water Loss Control Shared Services being considered by the Municipal Water District of Orange County would be a joint initiative model for shared services between MWDOC and our agencies to set up and operate shared services. The focus of this Water Loss Control Shared Services Business Plan is for MWDOC to provide shared services to retail water agencies throughout Orange County. Retail agencies would have easy and timely access to shared services to improve water loss within their systems under a shared services partnership with MWDOC. Shared services would be scaled to the needs of both large and small agencies. The sharing of services and equipment will minimize the potential for stranded assets. Demand for services beyond what MWDOC could provide would be facilitated by MWDOC from the private sector. Factors Driving MWDOC's Water Loss Control Shared Services Water loss requirements for urban water suppliers began in 2014 when the Governor signed Senate Bill 1420. The bill required urban water suppliers to quantify and report on distribution system water loss in urban water management plans, beginning in 2015. Distribution system water loss must be quantified for the most recent 12 -month period available, and the water loss report must be based on the water balance methodology endorsed by the American Water Works Association. In 2015, the Governor signed Senate Bill 555, increasing the requirements for annual water loss reporting and establishing a standard for water loss. This bill requires each urban retail water supplier, beginning October 1, 2017, to submit a completed and validated water loss audit report annually to the California Department of Water Resources (DWR). The bill also requires DWR to post all validated water loss audit reports on its website in a manner that allows for public access to water loss audits and performance comparison across water suppliers. The bill further requires the State Water Resources Control Board to adopt rules no later than July 1, 2020 that require urban retail water suppliers to meet performance standards for the volume of water losses. MWDOC's Current Technical Assistance Program In October 2015, the MWDOC Board authorized staff to begin a water loss control technical assistance program. The program included two components: a standing water loss control work group and one-on- one technical assistance provided by a consultant, Water Systems Optimization, Inc. (WSO). This effort 11 grew out of the legislative requirements of Senate Bill 1420 (2014) and Senate Bill 555 (2015) described above. Water Loss Control Work Group The Water Loss Control Work Group (Work Group) component of the MWDOC water loss control technical assistance program includes all retail water agencies in the county and meets every other month. The Work Group provides a forum for knowledge and capacity building among water agency staff on water loss control for retail water agency distribution systems. The every -other -month Work Group meeting agendas typically include: • Regulatory updates • Member agency information sharing o Meter accuracy testing and results o Advanced metering infrastructure o Leak detection o Revenue loss and theft recovery • Guest speakers, including SWRCB staff • Seminar topics • Technical assistance updates • Networking Work Group meetings are well attended by all retail agencies in the county. The average participation at each meeting over the last year was 25 to 30 staff members representing 18 to 25 agencies, and a representative from all agencies has attended at least one meeting during the duration of the program to date. One -on -One Technical Assistance Over the last three years, MWDOC established a comprehensive water loss control technical assistance program for water agencies throughout Orange County. The one-on-one technical assistance links retail water agency staff to a consultant, Water Systems Optimization, Inc. (WSO), specializing in water loss control. The technical assistance includes water balance compilation, component analysis of water loss volumes, distribution system leak detection, and reporting that contains recommendations for further actions to improve an agency's understanding of water loss control opportunities within their system. This program has evolved over time with the addition of sales and production meter accuracy testing in 2016, water audit validation in 2017, and the establishment of a distribution system leak detection equipment lending library in 2018. With the exception of the equipment lending library, these services are accessed by retail agencies through the "choice" program framework; on an approximately annual basis, agencies choose the services they desire and then pay for access to those services. Since these efforts started in 2015, the level of interest from water agencies throughout Orange County for these and other water loss control services has grown. Because of its success, the MWDOC water loss control program model is being replicated by the Bay Area Water Supply & Conservation Agency on behalf of their 24 member agencies. 12 Development of a Water Loss Control Shared Services Business Plan In February 2018 the MWDOC Board authorized staff to explore offering water loss control shared services directly from MWDOC to retail agencies. MWDOC staff have developed this Water Loss Control Shared Services Business Plan for review by both the Orange County retail agencies and the Board. Before any shared services are provided (beyond MWDOC's current offering), the Business Plan must be approved by the MWDOC Board. Staff are planning to present the draft Business Plan to the Board in late 2018 and will continue to engage with agencies along the way to ensure that shared services planning attends to actual agency needs. In support of this goal, MWDOC staff developed a survey to gauge retail agency interest in shared services and expectations of funding structures. The survey results are the basis of the services and staffing plan presented in this business plan. The water loss control shared services to be explored in this survey and possibly in the business plan include the following: • Annual level 1 water audit validation • Sales water meter accuracy testing (large and small sales meters) • Distribution system leak detection • Distribution system pressure surveys • Distribution system flushing The following are basic tenets of MWDOC's water loss control shared services: • Offer shared services at a competitive or lower cost than the same services provided by the private sector • Provide quality shared services on par with or better than the same services provided by the private sector • Realize economies of scale for these services by providing services at a regional level that cannot be justified at many local levels • Continue collaboration and shared learning among all agencies throughout this process • Phase implementation of new shared services over time, starting with the services that have the highest level of interest or demand by water agencies • Integrate program administration and data management to share results and customize program offerings to the unique conditions of each member agency The shared services will be offered using MWDOC's established "core" and "choice" funding framework, with "core" activities funded through the MWDOC general fund and available to all agencies and "choice" activities funded by retail agencies at the level of service of their choosing. These services will be accessed through an extended -term shared services agreement. The agreement would outline the basic roles and responsibilities of MWDOC and the retail agencies. Annually, each agency would complete a shared services participation exhibit. The exhibit would identify which shared services an agency would like to access and at what level of service (e.g., the number of meters to be tested or miles of main to be surveyed for leaks). Agencies will have the choice to opt in or out of shared services annually. 13 Needs Assessment (Gap Analysis) To better understand retail agency needs for water loss control shared services, staff surveyed agencies to see what shared services they would consider accessing if offered by MWDOC.' The survey asked agencies if they were highly likely, likely, or unlikely to access potential shared services, including: • Annual level 1 water audit validation • Sales water meter accuracy testing (large and small sales meters) • Distribution system leak detection • Distribution system pressure surveys • Distribution system flushing The survey also asked agencies if each of these services should be funded as a core or choice -based activity and gave agencies an opportunity to pose questions and express any specific support for or concern about these services. The survey was released to retail agencies on May 24, 2018 and was scheduled to close on June 7, 2018. Due to conference and vacation schedules, the survey was held open for two additional weeks to allow for broader agency participation. The final tally of survey participants totaled 28, including MWDOC member agencies and the cities of Anaheim, Fullerton and Santa Ana. The results of the survey are provided below. Note that the survey results below regarding how shared services should be funded exclude the cities of Anaheim, Fullerton and Santa Ana, as they are not subject to MWDOC's core/choice framework and would be charged directly for access to all shared services. The water loss control shared services business plan member agency survey is provided as Appendix 1. Annual Water Balance Validation Survey Question If MWDOC provided annual Water Audit Validation Services, as required by SB 555, would your agency participate? If MWDOC provided annual water audit validation services, as required by SB 555, would your agency participate? ■ highly likely ■ likely 0% 20% 40% 60% 8090 100% ■ unlikely Figure 2: Survey response to water audit validation shared service 1 Survey responses from agencies regarding Choice or Core services and Questions or concerns regarding each shared service is provided in Appendix 2. 14 Figure 2 shows that 71% of agencies responded that they are highly likely to participate, and the remaining 29% of agencies indicated that they are likely to participate, indicating broad support for water audit validation as a shared service. No agencies indicated that they are unlikely to access this shared service. Furthermore, survey results in Figure 3 show 36% of agencies indicating water audit validation should be core -funded and 64% of agencies indicating it should be choice -funded. Should water audit validation be core- or choice funded? 36% 64% ■ core ■ choice 056 20% 40% 60% 800/0 100% Figure 3: Survey response to funding water audit validation Because Senate Bill 555 requires all agencies to submit a level 1 validated water audit to the California Department of Water Recourses annually, MWDOC staff recommend that water balance validation be offered as a core MWDOC shared service utilizing in-house staff. Annually, staff will evaluate this core or choice service. When appropriate, it will be shifted to a Choice service. If an agency requests a level 2 or level 3 validation that requires more staff time than a level 1 validation, MWDOC staff recommend that additional time be a choice activity funded by the agency. Customer Meter Accuracy Testing Survey Question If MWDOC provided customer meter testing services for the following purpose, would your agency participate? • Independent verification in response to a customer claim of inaccuracy • Testing for new meters • Statistically -based testing across all meter sizes The survey results suggested broad support for MWDOC to provide customer water meter testing for the trio of purposes, with statistically -based testing across all meter sizes garnering the most support (see below). 15 If MWDOC provided customer meter testing services for the following purpose, would your agency participate? independent verification in response to a 46% customer claim of inaccuracy testing for new meters 57% statistically -based testing across all meter sizes 29% 0% 20% 40% 60% 80% 100% ■ highly likely v likely unlikely Figure 4: Survey response to meter accuracy testing shared service In terms of funding, survey results showed 7% of agencies indicating it should be core -funded and 93% of agencies indicating it should be choice -funded. Should customer meter accuracy testing be core- or choice - funded? 7% core ■ choice 0% 20% 40% 60°% 800/c 100% Figure 5: Survey response to funding meter accuracy testing The survey then queried agencies about how many meters they would have tested per year on average if MWDOC provided meter accuracy testing. A total of 18 agencies provided an annual count of meters to be tested that collectively ranged from 3,100 meters per year to 4,300 meters per year. There is support for meter accuracy testing among many of MWDOC's retail agencies. Because of the high capital cost of purchasing and warehousing small meter test equipment, MWDOC staff recommend customer meter testing services be provided as an out -sourced, contracted shared service as is currently being done with McCall's Meters and Westerly Meter Service Company. MWDOC staff also recommend that meter accuracy testing be funded as a choice activity by agencies choosing to have meters tested. Distribution System i_eak Detection Survey Question If MWDOC provided distribution system leak detection services for the following purpose, would your agency participate? • Partial -system or full -system leak detection services for distribution infrastructure (proactive) M • Distribution system leak detection to check for a suspected leak (reactive) If MWDOC provided distribution system leak detection services for the following purpose, would your agency participate? proactive leak detection 46% reactive leak detection 43% 0% 20% 40% 60% 80% 100% ■ highly likely e likely unlikely Figure 6: Survey response to leak detection shared service The survey captured broad support for MWDOC to provide distribution system leak detection shared services, with 21% of the agencies indicating they are highly likely to participate, 32% of the agencies indicating that they are likely to participate and the remaining 46% of agencies indicating they are unlikely to participate. Agencies indicated slightly higher interest for leak detection for suspected leaks in their distribution systems than for partial -system or full -system proactive leak detection. Most agencies (89%) prefer that distribution system leak detection be choice -funded. Should distribution system leak detection be core- or choice - funded? 11% core m choice 0% 2046 40% 60°% 80% 100% Figure 7: Survey response to funding meter accuracy testing The survey also asked agencies for the miles of distribution system main they anticipate surveying if MWDOC were to provide the service. Total annual leak detection anticipated by the 15 responding agencies ranged from 510 to 560 miles per year. There is support for distribution system leak detection among many water agencies. Because of the high mileage of distribution main to be surveyed and the fact that the required equipment has already been purchased, MWDOC staff recommend that leak detection be provided as an in-house shared service. MWDOC staff also recommend that distribution system leak detection be funded as a choice activity by agencies choosing to have their systems surveyed. 17 Distribution System Pressure Surveys Survey Question If MWDOC provided distribution system pressure surveys (either system -wide or for a pressure zone), would your agency participate? If MWDOC provided distribution sytem pressure surveys (either system -wide or for a pressure zone), would your agency participate? ■ highly likely 53% ra likely 09% 20% 40% 60% 80% 100% unlikely Figure 8: Survey response to distribution system pressure survey shared service There is support for MWDOC to provide distribution system pressure survey shared services with 4% of the agencies indicating that they are highly likely to participate, 43% of the agencies indicating that they are likely to participate, and the remaining 53% of agencies indicating they are unlikely to participate. In terms of funding, results showed 7% of agencies indicating pressure surveying should be core -funded and 93% of agencies indicating pressure surveying should be choice -funded. Should distribution system pressure surveying be core- or choice funded? 796. core 71 choice 0% 20% 40% 60% 80% 100% Figure 9: Survey response to funding distribution system pressure survey There is support for distribution system pressure surveys among many water agencies. Because of the limited number of surveys and the fact that the required equipment has already been purchased, MWDOC staff recommend that pressure surveys be provided as an in-house shared service. MWDOC staff also recommend that distribution system pressure surveys be funded as a choice activity by agencies choosing to have their systems surveyed. Distr hution System Flushing Survey Question If MWDOC provided distribution system flushing shared services, would your agency participate? 18 If MWDOC provided distribution sytem flushing shared services, would your agency participate? ■ highly likely 47% likely unlikely 0A 20% 40% 6010 80% 100% Figure 10: Survey response to distribution system pressure survey shared service The survey reported support for MWDOC to provide distribution system flushing shared services, with 14% of the agencies indicating that they are highly likely to participate, 39% of the agencies indicating that they are likely to participate, and the remaining 47% of agencies indicating they are unlikely to participate. Should distribution system flushing be core- or choice funded? 7% core choice 0% 20% 40°0 60% 80% 100% Figure 11: Survey response to funding distribution system flushing In terms of funding, survey results showed 7% of agencies indicated it should be core -funded and 93% of agencies indicated it should be choice -funded. The survey then queried agencies about how many miles of distribution main they would flush per year on average if MWDOC provided distribution system flushing services. A total of 13 agencies indicated they would likely use shared services for flushing a total of 1,900 miles per year. There is support for distribution system flushing among many water agencies. Because of the high capital cost of purchasing and warehousing flushing equipment, MWDOC staff recommend that this service be provide as a contract shared service using a third party. MWDOC staff also recommend that system flushing be funded as a choice activity by agencies choosing to access this service. Summary In summary, the survey captured broad support for a variety of water loss control -related shared services. Most services would be funded through choice elections by participating agencies. It is important to note that participation by all agencies is not necessary to justify offering a particular shared service. Furthermore, MWDOC's retail agencies would have the opportunity to cost-effectively reduce water loss through the shared services program. To date, most MWDOC retail agencies have compiled three 19 consecutive water audits to estimate and value distribution system water loss. Three years of water audit results are displayed in Tables 4 and 5 below. Though some agencies' audits present unrealistic results and not all water loss is recoverable, as a group, the audits capture significant volumes of water loss that could be recovered through proactive intervention. At approximately $1,200 per acre-foot, the current cost of imported water is sufficiently high to justify investments to evaluate and possibly implement systematic and economically viable water loss control programs, beginning with shared services. Table 4: Three years of apparent loss estimation* Year 1 Apparent Loss Year 2 Apparent Loss Year 3 Apparent Loss (AF) (AF) (AF) Total 7,314 7,416 8,056 * Apparent loss are the nonphysical losses that occur when water is successfully delivered to the customer but, for various reasons, is not measured or recorded accurately. Types of apparent loss are meter inaccuracy and billing errors. Table 5: Three years of real loss estimation* Year 1 Real Loss Year 2 Real Loss Year 3 Real Loss (AF) (AF) (AF) Total 20,814 20,362 14,790 * Real losses are the physical losses from the distribution system, most often leakage and tank overflows. 20 Solution — Shared Water Loss Control Services The following provides a description of the methodology to be used to provide each shared service, as well as the equipment and staff necessary for successful shared service execution. Opportunity No. 1: Water Balance Validation Description Level 1 water audit validation is the third -party review of a water audit through an interview and supporting documentation review. Level 1 validation aims to: • Confirm the correct application of general American Water Works Association water audit methodology to a utility's unique distribution system • Identify errors in water audit compilation and data validity grade selection and correct errors when possible Additional information on the process and outcomes of level 1 water audit validation can be found in Water Research Foundation project 4639A, Level 1 Water Audit Validation Guidance Manual (2017). Context Potential Annual water audit compilation and validation is a best practice for all water utilities. As a result, there is the potential for all MWDOC member agencies and the three cities to annually validate their individual water audits through shared services. Regulatory Requirements Level 1 water audit validation is an annual requirement for all California retail urban water suppliers.' Senate Bill 555, passed in October of 2015, directed the Department of Water Resources to collect level 1 validated water audits annually and publish a database of level 1 validated water audits online. Level 1 validated water audits are due by October 1 each year, and validation must be performed by a professional who was uninvolved in the compilation of the water audit and holds a level 1 water audit validation certificate issued by the California -Nevada section of the American Water Works Association. Value Beyond Compliance Level 1 water audit validation meets the requirements of Senate Bill 555, but beyond supporting compliance, level 1 water audit validation can improve the accuracy and reliability of a water audit. By engaging with a qualified level 1 validator to confirm the data sources, analysis, and methods used to compile their water audits, MWDOC's retail agencies can more confidently use the water audits' estimates of water loss to build water loss control programs. Furthermore, the level 1 validator may objectively 2 Retail urban water suppliers are defined as systems that supply more than 3,000 acre-feet of potable water a year or serve more than 3,000 service connections. Most MWDOC member agencies qualify as retail urban water suppliers, with the current exception of Serrano Water District and Emerald Bay Community Services District. 21 suggest practices for improved data management and instrument maintenance to support MWDOC retail agencies in employing best practices. Methodology Water audit validation will be conducted at level 1, according to the methodology established in Water Research Foundation project 4369: Level 1 Water Audit Validation Guidance Manual. Water audit validation aims to identify and appropriately correct for inaccuracies in water audit data and application of methodology. Furthermore, validation also evaluates and communicates the uncertainty inherent in water audit data. To accomplish these goals, MWDOC's validation shared service will follow the steps published in the Water Research Foundation Level 1 Water Audit Validation Guidance Manual. 1. Receive and review the water audit and supporting documentation. 2. Review performance indicators for evidence of inaccuracy. 3. Review audit inputs and data validity grades and confirm correct application of methodology in a level 1 validation interview. Adjust inputs and data validity grades if necessary. 4. Review performance indicators again for evidence of persisting inaccuracy. 5. Document results. MWDOC's validation shared service will also employ the California -specific additional guidance developed by the California Water Loss Technical Assistance Program and subsequently taught in the Water Audit Validator (WAV) certificate course. Validation results will be documented in a format acceptable to the Department of Water Resources. Templates for this format have been published by the California -Nevada section of the American Water Works Association on their WAV Certification webpage. Equipment Requirements Level 1 water audit validation does not require any specialized equipment. Staff will need: • Computers equipped with Microsoft Office Suite software • Email access • Phone access • Work stations from which to review supporting documentation and conduct level 1 water audit validation St ff Requirerrent Up to 30 level 1 water audit validations will be conducted annually, in perpetuity. The time needed to accomplish a level 1 water audit validation for a utility depends on the preparation and consistency of the water audit and supporting documentation. At minimum, coordination and scheduling requires an hour, supporting document review requires two hours, the validation interview requires two hours, and validation documentation compilation after the interview requires two hours, for a total of seven hours. For agencies whose supporting documentation and water audits require significant analysis, correction, or revision, the process may take up to ten hours per agency. Therefore, to forecast staff time demands, Table 6 shows an average level 1 validation is assumed to take seven to ten hours or 196 to 290 hours for all agencies. 22 Table 4: Staff time required for annual level 1 water audit validation Annual Validations Time per Validation Total Time per Year 28 to 29 7 -10 hours 196 to 290 hours (0.10 to 0.14 FTE) The staff member(s) who performs level 1 water audit validation must hold a level 1 water audit validation certificate issued by the California -Nevada section of the American Water Works Association. To earn a certificate, the MWDOC staff member(s) must attend the California -Nevada section's two-day level 1 water audit validation class and pass the test proctored at the end of the course. Course registration is currently $2,000 per participant. The course is taught at an advanced level and assumes fluency in water audit compilation methodology as a pre -requisite. In summary, to be qualified to level 1 validate water audits, the MWDOC staff that perform level 1 water audit validation must be fluent in water audit compilation methods and pass the level 1 water audit validation certificate test proctored by the California -Nevada section of the American Water Works Association. Opportunity No. 2: Meter Accuracy Testing Description Customer meter accuracy testing enables an agency to measure a retail meter's performance and consequently the throughput that the meter fails to register. By measuring a meter's inaccuracy, an agency can understand financial loss due to meter inaccuracy and can develop a plan to manage the meter performance within their system. Small customer meters, typically defined as meters two inches and smaller, are usually sampled from a population for testing. Test results are then extrapolated using statistical methods to represent the accuracy of the entire small customer meter stock. Large customer meters are treated as individual assets. Large customer meters are typically tested on a fixed schedule that an agency determines based on the financial consequences of meter inaccuracy. In such a large customer meter testing program, the meters responsible for generating the most income will be tested most frequently. Context Potential At the most recent count, Table 7 shows MWDOC retail agencies maintain 728,074 small customer meters (5/8 inches to 2 % inches) and 8,117 large customer meters (3 inches to 12 inches). It is recommended that most large meters that see significant volumes of throughput be tested on a regular schedule. Small customer meter testing schedules depend on an agency's meter accuracy statistics, meter age, revenue analysis and other factors described further below. 23 Table 7: 2017 orange county retail meter counts by size App S/6' 3/4' S/8' & 3/4' 1' 1-1/2' 2' 2-1/2' 3' 4' 6' B' 10' 12' Sub Total Brea 3,051 126 8,297 126 813 78 140 200 1S4 30 2 13,017 Buena Park 14,788 2,461 506 764 149 49 7 4 2 18,730 EI Toro WD 2,379 4,871 447 691 1,260 0 0 0 0 0 9,648 EOCWD 10 865 293 30 11 3 0 0 0 0 1,212 Fountain Valley 6,136 9,454 724 256 449 44 42 6 10 2 17,123 Garden Grove 28,635 3,250 847 656 55 115 44 0 0 0 33,602 Golden State WC 32,870 1,090 6,920 685 1,687 395 54 38 7 0 43,746 Huntington Beach 1 40,817 8,443 1,492 2,053 136 83 24 17 4 53,070 ovine Ranch WD 74,779 11,901 14,594 5,642 8,319 333 216 42 24 8 115,858 La Habra 8,297 368 3,195 327 507 278 11 11 5 0 12,999 La Palma 4,155 24 48 31 78 10 0 1 0 0 4,347 Laguna Beach CWD 0 6,835 LOW 254 159 s0 49 28 5 2 8,382 Mesa WD 17,095 2,156 2,164 930 1,163 55 35 16 8 0 23,622 Moulton Niguel WD 36,166 114 11,861 809 3,634 s0 60 7 5 1 52,707 Newport Beach 16,751 4 7,251 531 1,442 42 76 32 14 1 2 26,146 Orange 0 27,529 5,922 622 1,969 61 48 16 9 2 36,178 San Clemente 0 0 16,118 354 943 32 20 12 1 17,480 San luan Capistrano 0 6,768 3,184 568 697 7 20 9 0 0 11,253 Santa Margarita WD 0 41,047 8,098 786 2,117 42 is 2 6 0 52,113 Seal Beach 460 3,789 804 116 199 17 39 21 19 17 2 5,483 Serrano WO 1,734 329 147 6 s0 0 0 1 0 0 2,267 South Coast WD 0 8,095 2,846 631 198 270 18 5 0 0 12,063 Trabuco Canyon WD 2,650 873 257 39 132 6 3 2 0 0 3,962 Tustin 0 10,111 2,979 365 594 0 51 60 0 0 14,160 Westminster 15,448 2,398 1,346 322 574 72 123 114 41 5 1 20,444 Yorba Unda WD 28 5,611 17,404 576 1,074 1 6 4 1 0 0 1 24,704 MWDOCToW 250,645 171,546 31,667 127,650 17,351 30,941 0 2,251 1,200 655 329 74 7 634,316 Anaheim 39,406 15,841 2,663 3,158 170 197 726 794 469 118 24,136 Futlerton 14806 1 14998 887 1052 112 223 141 229 63 2 32514 Santa Am 31606 14'!4413 1422 1771 329 156 42 45225 Tonal 3 Cities Ton 46,412 ,46 57 0 35,252 4,972 SA51 170 638 11105 977 69t 16 1 2 301,875 Orsstge County Total 257,057 177,0331 31,667 162,902 22,323 36,922 170 2,6W 2,305 1,632 1,027 2S5 5 736,191 Regulatory Requirements There are no regulations that currently mandate customer meter testing. However, the water loss regulations that will be developed through the Senate Bill 555 process assume that retail water agencies have insight into apparent loss performance, which typically requires customer meter testing. Value Beyond Compliance Customer meter testing equips a utility to manage its customer meter stock. By understanding the accuracy of its customer meters, a water utility will be better positioned to: • Evaluate meter replacement cycles and study the factors affecting meter accuracy for effective meter management • Maintain revenue generation efficiency, particularly for key large meters that register significant consumption • Determine whether a meter technology upgrade could result in increased revenue in order to determine appropriate investment in new metering technology • Verify the performance of newly purchased meters Customer meter test results can also inform the estimate of apparent losses in an agency's annual water audit. By understanding customer meter performance, a utility is able determine the portion of water loss attributable to apparent loss and, therefore, the portion of water loss attributable to leakage. As a result, customer meter tests enable a utility to more accurately measure and, therefore manage, both apparent loss and real loss. 24 Methodology Customer meter tests will be conducted in accordance with the methodology set forth in American Water Works Association manual M6, Water Meters — Selection, Installation, Testing, and Maintenance. The stipulations in manual M6 include: • Specific low, medium, and high flow rates for each meter type and size • Minimum test volume by flow rate and meter size • Generally acceptable accuracy limits for new and repaired meters M6 also enumerates test procedures for laboratory tests and field tests that MWDOC staff and/or contractors will be required to follow. Fquigment Requirements Comprehensive customer meter testing is capital intensive. Meters two inches and smaller are often removed from service and tested on a test bench. Small meter test benches are typically stationary and housed in permanent facilities. In contrast, meters three inches and larger are tested in situ with mobile testing rigs. As a result, each size group (small or large) requires specific testing equipment. To confirm demand for customer meter testing services and acquire the most suitable equipment to serve retail agencies, customer meter testing will be conducted in two phases: first by local private companies and then by MWDOC staff using MWDOC-owned equipment, if determined to be reasonable after additional feasibility analysis. Phase One: Contracting with Private Companies MWDOC currently contracts with McCall's Meters (Hemet) and Westerly Meter Service (Compton) to test customer meters. Both companies were selected through a competitive bid with input by members of MWDOC's water loss control working group and approved by the MWDOC Board of Directors. Over the past three years, ten MWDOC retail agencies have tested a substantial number of customer meters. Eight retail agencies have contracted with McCall's or Westerly, while the other two agencies have tested customer meters in-house. McCall's and Westerly have met the needs of the eight retail agencies they have served, but appear to be nearing capacity. Should additional agencies choose to have meters tested, it may be necessary to contract with a third meter testing company. Phase Two: In -House Testing Should more MWDOC retail agencies wish to continue with periodic testing of customer meters, during the second phase of customer meter testing, MWDOC could invest in: • A small customer meter test bench • A portable large customer meter tester • A facility to house testing equipment, including the small customer meter test bench Staff will monitor demand for customer meter testing over the next few years. If demand for meter testing increases, staff will evaluate other options for this shared service including bringing meter testing in- house. 25 Staff Requirements Customer meter testing will be offered in two phases, as explained previously. In phase one, testing will be contracted with outside companies. In phase two, the costs and benefits of bringing customer meter testing in-house will be evaluated to determine whether doing so is attractive and feasible. Phase One: Contracting with Private Companies During the first phase, MWDOC will continue its contract with two local private meter testing companies. Retail agencies can contract a specified number of meter tests from the companies MWDOC has retained (to date, McCall's Meters and Westerly Meter Service). Each MWDOC retail agency will then individually coordinate testing, including meter delivery and the testing timeline, with the contracted testing provider. MWDOC staff will be involved in ensuring ease of contracting and tracking overall participation and results. MWDOC staff will also warehouse results to build a database and periodically analyze results to track performance and identify any observable trends. During phase one (contracted testing service), it is estimated that MWDOC staff will spend 2 hours per retail agency promoting customer meter testing and processing the funding exhibit and 8 hours facilitating meter testing, obtaining test data, building a test database, and interpreting test results. Therefore, as shown in Table 7, a total of 10 hours of MWDOC staff time per agency has been assumed for phase one or 190 hours for 19 participating agencies. Table 5: Staff time required for phase 1 of customer meter testing Participating Agencies Time per Agency Total Time per Year 19 10 hours 190 hours (0.09 FTE) Phase Two: In -House Testing During the second phase, MWDOC can weigh the costs and benefits of building the capacity to test customer meters in-house. Testing customer meters in-house would allow MWDOC retail agencies to receive tailored service and collaborate with regional peers on customer meter test data analysis and application. Furthermore, as the focus on customer meter testing intensifies over the next five years, demand for customer meter testing expertise is expected to greatly outpace service availability in both Orange County and the greater Los Angeles metropolitan area. MWDOC retail agencies' compliance with regulatory requirements and ability to manage customer meters would be supported by access to high- quality, convenient customer meter testing. To address MWDOC retail agency needs for customer meter testing in phase 2, MWDOC could hire staff to conduct customer meter testing. Staff could retrieve small customer meters from retail agencies, test customer meters on a test bench, and record and transmit test results. Customer meter testing staff should be able to: • Comfortably lift at least 50 lbs • Possess a driver's license 26 • Easily record data in Microsoft Excel • Accurately attend to details like meter serial numbers and meter test bench conditions • Operate simple mechanical equipment, like a mobile large customer meter testing rig However, developing customer meter testing capacity in-house would require initial capital investment to obtain testing equipment, including a customer meter test bench and/or mobile large customer meter testing rig. MWDOC staff will monitor customer meter testing to determine whether bringing customer meter testing in-house is attractive, in which case a comprehensive analysis will be completed and presented to the Board for consideration. Funding Mechanism Customer meter accuracy testing would be funded by each agency per test. Test prices would align with meter sizes, with tests of larger meter costing more than smaller meter tests. Testing funding would therefore be choice -funded based on the number and sizes of meters an agency elects to test. The acquisition of test equipment could be funded in part or in whole through grant funds. Possible grant funding sources include: • The United States Bureau of Reclamation • The Metropolitan Water District of Southern California • The Department of Water Resources Integrated Water Management Program Opportunity No. I Distribution System Leak Detection Description To identify and repair leaks, a utility must conduct distribution system leak detection. Distribution system leak detection can be performed in response to a specific suspected leak or as a proactive measure to discover hidden leaks. A range of technologies can be harnessed for leak detection, ranging from established acoustic equipment to experimental satellite monitoring. Most utilities are familiar with acoustic leak detection in which a microphone and amplification device are touched to accessible infrastructure so that a technician can listen for leak noise. Effective leak detection depends on the skill of the leak detection technicians and the applicability of the leak detection technology to infrastructure and local conditions. Acoustic methods are generally cost- effective and successful for utilities who survey infrequently or have never performed proactive leak detection before. However, acoustic leak detection is more effective on metallic pipe than plastic pipe. Utilities with rigorous, frequent proactive leak detection programs may benefit from more advanced interventions, though cost-effectiveness varies and the rates of success of advanced technologies are not agreed upon. Context Potential According to the water audit data validated in 2017, retail water agencies in Orange County maintain more than 10,000 miles of distribution main in their systems. All main pipe is susceptible to leakage, and 27 proactive leak detection may enable distribution system managers to reduce water loss and extend asset life. Regulatory Requirements Retail urban water suppliers will be required to demonstrate water loss improvement and achieve water loss performance objectives by 2027. Senate Bill 555 water loss performance standards will contribute to the water supply budget framework designed pursuant to Executive Order B-37-16. Most MWDOC retail agencies do not currently perform proactive leak detection. Proactive leak detection will support agencies in demonstrating improvement in reducing their leakage volumes. By achieving sustainable, compliant leakage volumes, MWDOC retail agencies will meet the standards of Senate Bill 555 and more easily live within their water budgets. Value Beyond Compliance In addition to complying with water loss targets, proactive leak detection and repair can also reduce a utility's expenditures. Leak identification and repair avoids continued water lost to leakage, thereby saving on water purchase, treatment, pumping costs, embedded energy, and emissions. Additionally, proactively pursuing leakage can uncover leaks early in their development. Early leak discovery reduces the risk of catastrophic failure and corresponding repair costs that tend to increase with time. Leak detection, whether reactive or proactive, also informs asset management. By engaging with infrastructure through acoustic surveying, leak noise logger deployment, or other leak detection technologies, a utility can confirm the accuracy of recorded infrastructure information. Furthermore, a leak detection survey empowers a utility to map the distribution of leakage, study leak patterns, and more effectively prioritize pipeline replacement. Lastly, proactive leak detection demonstrates stewardship to ratepayers and stakeholders and engenders positive public perception. By showing care for supply-side infrastructure and distribution efficiency, a utility can more confidently request customer conservation during times of supply scarcity and solicit approval for capitally intensive projects. Methodology Leak detection will be conducted using a comprehensive acoustic survey, meaning that leak detection technicians will sound all available appurtenances regardless of spacing distances. The following protocols will be adopted for leak detection: Sounding points: physical contact and sonic leak sound amplification will occur for each hydrant, available valve, and customer service connection. Sonic ground listening (hard cover): when normal contact points are not available or cannot be created within a reasonable distance, sonic ground listening devices will be used by making ground contact directly over the pipe at intervals no greater than 6 feet when ground cover is pavement, concrete, or a similar hard surface. If excessive ambient noise precludes the effectiveness of the ground listening device in an area during daytime hours, then survey will be considered during nighttime hours. Such situations will be pre -approved with retail agency staff before any night surveying is undertaken. 28 • Sonic ground listening (soft cover): when normal ground contact points are not available and ground cover is not a hard surface, probe rods will be used at 10 -foot intervals. A sound amplifier will be used on probe rods. Probe rods will be driven into the ground a minimum of 6 inches directly over the pipe where ground conditions allow. • Verification: all indications of leaks found during initial survey will be verified a second time, after which the leak will be pinpointed with a computer-based leak sound correlator whenever possible. Pinpointing leak locations through interpretation of sound intensity, whether by ear, decibel metering, or comparable methods, will not be used when contact points are available for access with a computer-based leak sound correlator. • Situations requiring valve or appurtenance operation: the survey equipment that will be used typically does not require valve operation during surveying and pinpointing. However, on occasion, services or valves may require operation to eliminate service connection draw noise or to change velocity noise for the purposes of leak verification. If required, any valve or appurtenance operation will need to be performed by retail agency personnel only, not by MWDOC staff. • Procedure for valve or appurtenance operation: on a weekly basis, MWDOC staff will prepare a list of appurtenances that need to be operated by retail agency staff for leak verification or pinpointing. The following week, retail agency staff and MWDOC leak detection specialists will arrange for and operate valves or appurtenances for leak validation. • Correlator equipment: the correlator equipment will prompt the operator to input relevant data when different pipe sizes and/or materials are encountered during a survey segment. Correlators will be capable of correlating up to at least four pipe sizes and types at once in a given span. Equipment Requirements At minimum, each acoustic leak detection technician will require: • A sounding rod • Aground microphone Each crew will need: • A vehicle to access leak detection sites and routes • Safety and traffic control equipment (e.g. cones and reflective, brightly colored clothing) Additional equipment that would allow for more comprehensive and accurate leak detection includes: • Leak noise correlators • Leak noise loggers • Pipe locator MWDOC has already acquired standard leak detection equipment with financial support from the Bureau of Reclamation. The equipment MWDOC purchased is listed in Table 8. MWDOC has not yet purchased a vehicle for leak detection, traffic control equipment, or a pipe locator. 29 Table 8: MWDOC leak detection equipment Item N. Device Accessorles Quantkv Unit Cost Total comments: 1 Subsurface LD -18 Digital Water Leak Detector 4 $ 5,355.00 Sensor w/ Magnet & Cable 4 $ 745.00 40 in. Extension Rod 2 $ 69.30 60 in. Extension Rod 2 $ 87.30 2 Zcorr Digital Correlating Logger w/8 Pods 3 $15,500.00 Sidt Requirements $ 21,420.00 5 -year Manufacturer Warranty $ 2,980.00 $ 138.60 $ 174.60 $ 46,500.00 15 -year Manufacturer Warranty A leak detection technician can typically accomplish 2.5 miles of leak detection per day in a residential setting. In high traffic settings, leak detection is often most successful when two technicians operate in parallel to support one another for safety and accessing infrastructure and confirming leak noise. Two technicians working together can conservatively accomplish 5.0 miles per day, though faster paces may be possible. As shown in Table 9, accomplishing 336 to 486 miles of leak detection survey would require 1,410 to 2,010 hours. Table 9: Staff time required for acoustic leak detection Annual Miles Miles per Day (one person) Total Time per Year 336 to 486 miles 10 miles per week 1,410 to 2,010 hours (0.68 to 0.97 FTE) F i.inding Mechanism Leak detection would be contracted as a choice service at a per -mile rate. Equipment has already been purchased using MWDOC and Bureau of Reclamation grant funds. Opportunity No. 4: Distribution System Pressure Surveys Description Pressure is necessary to provide high-quality service and react to emergencies, but over -pressurization can result in unnecessary leakage. Managing pressure for optimal service and minimal leakage requires thorough knowledge of the distribution system's pressure profile, but many utilities only have incomplete or dated pressure data. Typically, pressure data is available only at critical points like pressure -regulating infrastructure and the highest elevation in the distribution system. This form of pressure data, though useful for identifying service failures, does not provide complete insight into pressure dynamics across a system. To remedy this incomplete insight, it is recommended that utilities log pressure at fire hydrants throughout the distribution system. Dispersed pressure logging is particularly useful when high -frequency instruments are deployed, since high -frequency logging can identify pressure transients propagating through the distribution system. 30 Context Potential The number of pressure zones in Orange County has not been determined. However, many agencies serve between 3 and 10 pressure zones (if not more), each of which has unique pressure dynamics. Furthermore, all MWDOC retail agencies operate pressure -regulating infrastructure, including pumps and pressure regulating valves. Each piece of pressure -regulating infrastructure has the potential to malfunction, and not all malfunctions are easy to detect without pressure monitoring equipment. Therefore, logging system pressures to determine normal operations and deviations from normal can benefit all retail agencies. Regulatory Requirements Senate Bill 555 mandates periodic improvements to water audit data and water loss management, and Senate Bill 555 and Executive Order B-37-16 both require the achievement of specific performance. Pressure logging supports compliance with both regulations through the acquisition of more specific insight into the factors affecting water loss and water loss remediation strategies. Value Beyond Compliance Beyond enabling MWDOC retail agencies to comply with water audit and water loss regulations, pressure logging allows a utility to more accurately quantify average zonal and system pressures. When a utility refines its average pressure estimate using field data, water loss performance indicators that involve system pressure become more reliable. Additionally, adding pressure data to zonal management plans (for example, district metered area management) can highlight opportunities for pressure reduction or modulation that maintain service, but reduce leak frequencies and flow rates. Targeted pressure reduction not only saves water, but also saves energy consumption and corresponding emissions. Furthermore, by logging pressure at a high frequency (four or more pressure samples per second), a utility can identify pressure transients. Pressure transients, instantaneous and damaging swings in pressure that propagate through a pipe network, can cause infrastructure damage, but are difficult to identify in the absence of high -frequency pressure data. When a utility notices frequent infrastructure failure in a certain area or installs new pressure -regulating infrastructure, high -frequency pressure logging can highlight transients that a utility may be able to eliminate with operational changes. Methodology The methodology used for pressure surveying depends on the survey goal. Methodology must be agreed upon with each agency before surveying begins. The methodology to be determined includes: • Logger settings (e.g. sampling and recording frequencies) • Logger deployment locations • Logger deployment durations • Analysis of data after logger retrieval 31 Equipment Requiremelits Pressure data is typically collected with loggers attached to fire hydrants. Loggers can be categorized as standard (fewer than one pressure read every 250 milliseconds) or high -frequency (more than one pressure read every 250 milliseconds). Recording pressure in multiple locations simultaneously can allow pressure patterns and transient propagation to be observed, so a set of loggers than include high - frequency instruments provides more useful information than a single rotating logger. As a result, high - frequency loggers are more expensive. Therefore, it is recommended that MWDOC acquires: • 4 or more high -frequency pressure loggers • 4 or more standard pressure loggers • 8 or more lockboxes to prevent pressure logger theft Staff Requirements To conduct a pressure survey, six steps must be accomplished: 1. Choose survey locations based on planning and coordination with agency 2. Deploy loggers 3. Allow the logging period to pass 4. Retrieve loggers 5. Harvest data 6. Analyze data and communicate results Planning and data retrieval and analysis vary in the time required, depending on survey complexity and analytic rigor. Planning and analysis can happen concurrently with logging at the next round of sites to maintain efficiency (see Figure 12). Deploying loggers typically takes one day, assuming that logger locations are close enough that total driving time does not stretch longer than a half a day. Similarly, retrieving loggers also takes a day. Planning Deployment Logging Retrieval Analysis Planning Deployment logging Retrieval Analysis Figure 12: Pressure survey phases of work Therefore, Table 10 shows 15 to 21 surveys will be performed. Each survey will require 44 hours for a total of 660 to 924 hours. Table 10: Staff time required for pressure logging and analysis Annual Surveys Time per Survey Total Time per Year 15 to 21 44 hours 660 to 924 hours (0.32 to 0.44 FTE) 32 Funding Mechanism MWDOC has acquired pressure loggers through a Bureau of Reclamation grant and match funds from MWDOC. Additional investment in a vehicle for pressure logger deployment and retrieval will be necessary, and it's likely that the vehicle would be used for other water loss control services too (for example, large customer meter testing site visits). Pressure surveying would be funded through choice election by agencies who contract this service. The scope of each survey, including the rigor of analysis required, would dictate an appropriate survey budget. Opportunity No. 5. Distribution System Flushing Descriptor) Distribution system flushing is sometimes necessary to maintain water quality and exercise system infrastructure. Traditionally, distribution system flushing has been conducted unidirectional by opening a fire hydrant near the area of the system to be flushed and directing hydrant discharge into a storm drain. However, this method of system flushing wastes water treated to potable standards and tends to invite public criticism. To mitigate water waste and poor public perception resulting from system flushing, a utility can flush distribution pipe using a neutral output discharge elimination system (NO -DES). A NO -DES unit connects to two fire hydrants to create a loop. Water is then pumped from one fire hydrant to the other through the NO -DES unit, which filters sediment and biofilm stirred up during flushing to remove these contaminants from the water before the water is reintroduced to the distribution system. If needed, a NO -DES unit can also add disinfectant during the filtration process to further improve water quality. Cr) r,jt(xt Potential According to the water audit data validated in 2017, retail water agencies in Orange County maintain more than 10,000 miles of distribution main in their systems. Regulatory Requirements The Safe Drinking Water Act and California Health and Safety Code require compliance with drinking water quality standards to ensure a reliable and safe drinking water supply. Often, to comply with standards set by the EPA and the state, utilities make regular, planned discharges (flushing) from their distribution system. These discharges are regulated by Section 402 of the Clean Water Act that requires that a discharge of any pollutant or combination of pollutants to surface waters be regulated by a National Pollutant Discharge Elimination System (NPDES) permit. 33 Value Beyond Compliance In addition to complying with federal and state regulations, a NO -DES unit allows a utility to more efficiently use its water. NO -DES decreases the volume of water going to waste during the flushing process, resulting in cost savings for purchasing, treating, and power to distribute or pump the water. Further, hydrant flushing to waste is not perceived favorably by customers. Using a NO -DES unit would decrease public scrutiny, especially during drought periods when the utility is asking customers to use less water. By efficiently maintaining and operating their distribution system, the utility would demonstrate stewardship of this limited resource, gaining positive public perception. Methodology Flushing with a NO -DES unit will consist of the following steps, whether conducted by a third -party contractor (phase one) or in-house staff (potential phase two): 1. Deploy: Mobilize and set-up NO -DES truck at flushing location, between two fire hydrants. 2. Connect: Connect a hose from the filtering system's inlet point to one hydrant; then, connect a second hose from the filtering system's outlet point to the other hydrant. 3. Create a loop: Open both fire hydrants, allowing the hoses and filters to be filled. This will create a temporary above -ground loop in the water distribution system. 4. Circulate: A large pump on the NO -DES unit circulates water through the loop at the desired flushing velocity, scouring the water main to remove debris. 5. Filter and purify: Contaminants and biofilms are removed by the NO -DES filters. If needed, a small amount of chlorine may be added to increase chlorine residual during the process. 6. Shut down: When the entire section of water main in the targeted flush zone has been filtered and all turbidity meters are below 1 NTU, shut down the system, close hydrants, and remove hoses. To ensure that this flushing methodology is compliant and reduce the administrative burden on retail agencies, MWDOC would pursue regional flushing permits from the Santa Ana Regional Water Quality Board and the San Diego Regional Water Quality Board. A regional permit has not been pursued and secured before. However, streamlined operation of a standard flushing methodology across the county is attractive for ease of permitting for MWDOC, MWDOC's retail agencies, and the regional water quality boards. Equipment Requirements NO -DES flushing will initially be offered as a shared service contracted with a third party. Depending on interest and cost viability, MWDOC can consider a second phase in which NO -DES flushing is operated in- house. Phase 1: Contracting with Private Companies For the first phase of NO -DES flushing, MWDOC will contract with a third party. A competitive bid process will allow MWDOC to select the service provider that best meets retail agency needs. 34 Phase 2: Offering NO -DES Flushing In -House Staff will monitor demand for NO -DES flushing over the next few years. If demand for NO -DES flushing increases, staff will evaluate other options for this shared service, including bringing the flushing in-house. If MWDOC determines that offering NO -DES flushing using MWDOC staff and equipment is cost -justified, MWDOC will have to purchase a NO -DES unit. A NO -DES unit (truck or trailer) is required to flush mains between 2" and 12". For mains larger than 12", two NO -DES units may be used in parallel. The NO -DES has two separate filter housings that must be replaced regularly. The first filter has an approximate life of 1 to 3 weeks, while the second filter has an approximate life of 3 to 6 weeks, depending on the condition of the distribution system. Ylaff Renmrements Phase One: Contracting with Private Companies In phase one, MWDOC will contract with a third party to accomplish system flushing. MWDOC staff time will be spent in developing and running the bid process, ensuring ease of contracting, and tracking program results. To accomplish these administrative tasks, Table 11 shows a total of 450 hours would be required for 15 agencies at 30 hours per agency. Table 11: Staff time required for phase 1 of distribution system flushing Agencies Participating Time per Agency Total Time per Year 15 30 hours 450 hours (0.22 FTE) Phase Two: Offering NO -DES Flushing In -House Should staff determine that bringing NO -DES Flushing in-house is feasible, a complete analysis will be completed and presented to the Board for consideration. A NO -DES unit requires at least two technicians to operate, but three technicians are typically recommended. A two -person crew would consist of a lead worker and a maintenance worker with the following responsibilities: Lead Worker: • Is responsible for overall NO -DES operation • Plans flushing routes and maps • Calculates flow rates, pressures, and chlorine dosing • Logs data • Retrieves water quality samples Maintenance Worker A: • Operates hose burro • Operates hydrants and valves 35 Maintenance Work B (optional): • Sets up hose ramps to allow traffic to pass over hose, if necessary • Controls traffic Two trained technicians working together can conservatively accomplish approximately 0.75 miles per day, though faster paces may be possible. At each location, it takes approximately 1 hour to deploy the truck and 1 hour to break down the truck, with flush times ranging from 10 minutes to 2 hours. The economics of operating NO -DES flushing in-house, including staffing, will be evaluated at a later date if MWDOC staff and board choose to do so. Summary of Solutions In summary, it is proposed that MWDOC will offer five shared services to its retail agencies: • Level 1 water audit validation (MWDOC staff) • Customer meter testing (third -party contractor for initial phase) • Distribution system leak detection (MWDOC staff) • Distribution system pressure surveying (MWDOC staff) • NO -DES flushing (third -party contractor for initial phase) These services will enable MWDOC retail agencies to comply with new water loss regulations and employ best management practices in ensuring infrastructure longevity and system efficiency. Private Sector and MWDOC Cost Comparisons To evaluate the efficiency of shared services provision, MWDOC staff have surveyed the price points of private -sector service providers for each of the shared services that MWDOC staff recommend be operated in-house by MWDOC staff. These include Level I Water Balance Validation, Distribution System Leak Detection, and Distribution System Pressure Surveys. These services require minimal capital expenditures, of which some have already been purchased including the leak detection equipment and distribution system pressure loggers. MWDOC staff recommends that customer meter accuracy testing and distribution system flushing be contracted externally with the private sector because of the significant expenses to purchase, warehouse, operate, and maintain required equipment. To get started at a minimal level, meter accuracy testing and distribution system flushing equipment combined could cost more than $1.5 million. As such, no cost comparisons between MWDOC and private sector providers for these two services are necessary at this time. However, MWDOC staff will monitor retail agency subscription to these services. When feasible and valuable, MWDOC staff will return to the Board to discuss the costs and benefits of bringing these services in-house. MWDOC's costs are based on limited administrative time to coordinate and plan shared services and the estimated amount of time necessary to perform the shared service. An overhead factor of 1.693 is multiplied by the hourly rate of staff members performing the work. This factor includes expenses such as employee benefits, insurance, office maintenance, office supplies, telecommunications, computers and computer maintenance, software and software support, staff training, conference expenses, travel, and accommodations. 36 Water Balance Validation MWDOC obtained cost estimates, as shown in Table 12, from five companies to provide the level 1 validation services required by Senate Bill 555. Employees of these companies have been certified by the California -Nevada section of the American Water Works Association to conduct level 1 water audit validations that meet the requirements of Senate Bill 555. The cost range across private sector providers was $2,000 to $3,000 per level 1 validation, summarized in the table below. MWDOC's cost estimate assumes this service would be performed by the Water Loss Control Programs Supervisor and the complete validation would require a total of 10 hours to complete. The time to complete level 1 validation includes administration, data review, two-hour agency consultation, and reporting. Based on this, MWDOC's cost estimate is $840 per validation. Table 12: Level 1 water audit validation pricing Company Cost of Service MWDOC $840 Water Systems Optimization, Inc. $2,000 to $2,500 Woodard & Curran $3,000 M.E. Simpson Company, Inc. $2,200 to $2,500 CiviITEC Engineering $3,000 Distribution System Leak Detection Two levels of distribution system leak detection are under consideration: a systematic survey of large portions of the distribution system (up to the entire system) and/or a localized survey for a suspected leak. Leak detection shared services would be structured to allow agencies to access either approach. Cost estimates for distribution system leak surveying were obtained from three companies. To allow for cost comparisons, prices were normalized to a survey mile, with technical approach and leak detection methodology specified. The technical approach involves acoustic listening using ground microphones and sounding rods, while the methodology is to "sound" the distribution system at all possible locations including services, meters, valves, and hydrants. Some companies provided pricing based on pipe material (metallic vs. PVC), while others provided pricing for a standard range of pipe materials. These costs also include documentation, leak validation, and reporting. Costs ranged from $275 to $400 per mile. MWDOC's cost estimate is $207 per mile. A summary of these price points is provided in Table 13. 37 Table 13: Leak detection pricing Company Cost of Service Notes MWDOC $207 Per mile Irvine Ranch Water District $170 Per mile $400 Per mile for miles 1-50 Water Systems Optimization, Inc. $350 Per mile for miles 51-100 $300 Per mile for miles 101+ $280 Per mile for 75% PVC and 25% metallic + $149/day mobilization Utility Services Associates $203 Per mile for metallic pipe + $149/day for mobilization $305 Per mile for PVC pipe + $149/day for mobilization MatchPoint Water Asset $275 Per mile for 75% PVC and 25% metallic Management, Inc. $1500 Per day (two -person crew, 2 to 5 miles per day) One company, Utility Services Associates (USA), also provided a cost estimate for a suspected leak investigation. A suspected leak investigation is a localized survey for a suspected leak. This investigation will utilize the same technical approach and methodology used in the system survey. Table 14 summarizes the USA and MWDOC cost estimate for a suspected leak investigation. Table 14: Suspected leak investigation pricing Company Cost of Service Notes MWDOC $259 Per investigation plus mileage Utility Services Associates $500 Per investigation plus mileage Distribution System Pressure Survey Cost estimates for a distribution system pressure survey were obtained from one company. The pressure survey includes planning the survey with the retail agency, deploying and retrieving data loggers, and analyzing and reporting results. Table 15 summarizes the private sector and MWDOC cost estimate for a system pressure survey. Table 15: Pressure survey pricing Company Cost of Service Notes MWDOC $3,360 For an 8 -logger survey Water Systems Optimization, Inc. $6,600 For an 8 -logger survey 38 Conclusions Based on this analysis, MWDOC can provide all three shared services at a lower cost than the private sector and ease the administrative burden for our agencies in securing these services. MWDOC can provide water balance validation and pressure survey shared services at about half the cost of the private sector and leak detection shared services at about two-thirds the cost of the private sector. Should retail agencies request more services than can be provided by MWDOC staff, private sector consultants and contractors will be made available to the agencies when necessary. These consultants and contractors will act as an overflow work force to meet the demands in a timely manner. Execution and Implementation Target Market As shown in Figure 13, the target market for water loss control shared services includes all 32 retail water agencies within Orange County, including all MWDOC member agencies and the cities of Anaheim, Fullerton, and Santa Ana. MWDOC has a well-established working relationship with all 32 retail water agencies. Figure 13: Shared services target market 39 Core and Choice Funded Shared Services MWDOC staff are proposing to implement shared services using a combination of core and choice funding as summarized in Table 6. Core shared services would be provided to all retail agencies and would be funded by MWDOC through the general fund. Choice shared services would be funded by participating retail agencies who choose to access the shared service. Because Senate Bill 555 requires all urban water suppliers to submit validated water audits annually to the California Department of Water Resources by October 1, staff is proposing that water audit validation be a core shared service. However, it should be noted that the time available to complete 30 validations the first year will be compressed to three months from July 1, 2019, when shared services are initiated, to October 1, 2019, when validations are submitted to DWR. As a result, contractor assistance may be needed the first year for validations to be completed on time. It is anticipated that staff at some agencies will pursue Water Audit Validator (WAV) certification through the American Water Works Association, which will enable them to validate the water balance for their agency. However, water audit validation must be performed by a certified validator who is not involved in compiling the water balance. Currently, few agencies have the staff necessary to both compile and validate a water audit. Should enough agencies establish sufficient resources to both complete a water audit and then independently validate it, staff will reevaluate providing validation as a core service. The remaining shared services are not mandated and would therefore be choice funded by agencies choosing to access the shared service. This ensures that agencies only pay for the shared services they choose to access. Table 16: Shared service implementation funding and contracting structure Shared Service Funding Mechanism Water audit validation Core Customer meter testing Choice Leak detection Choice Pressure surveying Choice NO -DES flushing Choice n -House Staff and Contractor -Provided Shared Services Staff propose to use a combination of in-house staff and outside contractors to provide shared services as shown in Table 17. Water audit validation, leak detection and system pressure surveying will be implemented utilizing in-house staff. These shared services do not require significant capital investments for equipment and require minimal office space for staff and equipment storage. Leak detection and pressure surveying equipment has already been purchased using MWDOC and USBR grant funds. This equipment is stored in MWDOC's on-site storage vault and is secured nightly. 40 Customer Meter Accuracy Testing and Distribution System Flushing services require significant capital investment in equipment and warehousing. As a result, these shared services will be implemented with outside contractors. McCall's Meters, Inc. and Westerly Meter Service Company have been providing customer meter accuracy testing for the past three years. This arrangement will be continued for another two years before another competitive selection process is completed to maintain adherence to MWDOC's Administrative Code. In order to provide distribution system flushing services, staff will conduct a Request for Proposals (RFP) process to select a contractor(s). The RFP will clearly define the scope of work desired by retail agencies planning to access this shared service and specify best practices that the contractor(s) must employ. It is anticipated the RFP process, including Board authorization, will be initiated at the beginning of the 2019-20 fiscal year and conclude by fall 2019. During the first 12 to 24 months of shared service implementation, staff will evaluate the feasibility of transitioning contractor -provided services for meter testing and system flushing to in-house provided services. The biggest challenge to overcome in making this transition is the significant capital investment for equipment, alongside with warehouse and utility yard -style facilities to house equipment. Phased implementation will allow for an evolving understanding of retail agency demand for these services without making significant capital expenditures that could be stranded if not utilized. Tabie 17. Shared service provision in phase one Shared Service Phase One Provider Water audit validation In-house (MWDOC) Customer meter testing Contractor(s) Leak detection In-house (MWDOC) Pressure surveying In-house (MWDOC) NO -DES flushing Contractor(s) Sla'fir{, Plan and Organizational Structure Staffing Plan Water loss control shared services will be offered through a combination of in-house staff and contracted services. Shared services implemented with in-house staff will initially be level 1 water audit validation, distribution system leak detection, and distribution system pressure surveying. Due to the significant capital investment needed to purchase and warehouse meter accuracy testing and system flushing equipment, these services will be contracted in the first phase of shared service implementation. If at a later date MWDOC determines that customer meter testing and/or NO -DES system flushing would be appropriate to offer as an in-house service, staff will return to the Board to request authorization. Staff completed an analysis of in-house staff needs to provide water audit validation, distribution system leak detection, and distribution system pressure surveys. Additional time is included to capture the administrative time necessary to facilitate both in-house and contractor -provided shared services. Table 18 shows that 1.81 full-time equivalent (FTE) staff are needed for a "low" level of shared services and 2.26 41 FTE staff are needed for a "high" level of shared services. Using the results of the Shared Services Survey, the "low" level of participation assumes that 100% of agencies designating "highly likely" and 50% of agencies designating "likely" will participate. The "high" level of participation assumes that 100% of "highly likely" and "likely" agencies will participate. This staffing analysis also includes time for the Supervisor to assist the Director of Water Use Efficiency with technical support for water loss control policy development and competitive selection processes necessary for contractor -provided shared services (meter accuracy testing and distribution system flushing). Knowing that the State Water Resources Control Board has a deadline to establish a water loss standard by July of 2020, the amount of time needed for policy support will be significant. Together, these activities are estimated to require an additional 0.20 FTE for the Supervisor position. And finally, this analysis includes 0.10 FTE (per FTE) for holiday, vacation and sick time. Table 18: Proposed water loss control shared services staffing Position and Responsibilities Funding Mechanism Staffing Need (Low) Staffing Need (High) Water Loss Control Programs Supervisor 0.97 1.03 1.19 Level 1 water audit validation Core 0.10 0.14 Customer meter accuracy testing Choice 0.09 0.09 Distribution system pressure surveys Choice 0.32 0.44 Distribution system flushing Choice 0.22 0.22 Water loss policy development Core 0.20 0.20 Overhead (holiday, sick & vacation time) Core 0.10 0.10 Leak Detection Technician * 0.78 1.07 Distribution system leak detection Choice 0.68 0.97 Overhead (holiday, sick & vacation) Core 0.10 0.10 Total 1.81 2.26 * excludes suspected leak investigations. Staff is recommending two full-time equivalent employees be hired to provide water loss control shared services — one Water Loss Control Program Supervisor and one Leak Detection Technician. The primary responsibilities of the Water Loss Control Program Supervisor would be overall program supervision and administration, scheduling of services, policy development, water audit validation, pressure surveys, and water loss control work group planning, coordination, and implementation The primary responsibilities of the Leak Detection Technician would be leak detection and assistance with pressure survey equipment deployment and recovery (when available). Draft job descriptions for both positions are provided as Appendix 3. 42 Organizational Structure The proposed Water Loss Control Shared Services will be housed within MWDOC's Water Use Efficiency Department and would be the responsibility of the Director of Water Use Efficiency as shown in Figure 14. The Water Loss Control Programs Supervisor will report to and be supervised by the Director of Water Use Efficiency and would be located at the vacant work station in the accounting department. The Water Loss Control Programs Supervisor would manage the day-to-day operations of water loss control shared services, including the Leak Detection Technician. The Leak Detection Technician is primarily a field-based employee however, any time spent working in the office would be floating at any open work station. Water Use Efficiency Water loss Control Programs Supervisor Programs Supervisor Leak Detection Water Use Efficiency Water Use Efficiency Analyst 11 Analyst I JAME Water Use Efficiency Intern Figure 14: Water Loss Control Shared Services Organizational Structure Physical Location Both staff and water loss control equipment will be located at MWDOC's current Fountain Valley offices. There is currently one vacant work station in the MWDOC Accounting office area. The Water Loss Control Programs Supervisor will be assigned to this work station. The Leak Detection Technician is primarily a field-based position; therefore, limited office space would be needed, usually on Fridays. Leak detection equipment will continue to be stored in the secure vault location adjacent to the copy room. Equipmentano Training Initial Equipment Needs The equipment needs for shared services staff include vehicles, vehicle accessories, and safety equipment. In the past few months, Yorba Linda Water District and Irvine Ranch Water District obtained bids for the 43 purchase of vehicles designed to meet the needs of MWDOC's field staff. These bids ranged from $29,000 to $29,500 per truck from Chevrolet and Ford, respectively. Vehicle accessories such as cab guards, corner strobes, traffic directors, and tool boxes ranged from $1,700 to $2,000 per vehicle. Therefore, the cost for purchasing two vehicles including accessories is approximately $62,400. Safety equipment for staff includes work gloves, rubber gloves, safety glasses, spray paint, pipe locators, traffic cones, hard hats, and ANSI Class III safety vests. In addition, two computer work stations and one laptop for field work will be needed. The initial cost for this equipment is approximately $10,400, with the pipe locators composing the majority of this expense. Staff training will be required for level 1 water audit validation and general field operations safety. The California -Nevada section of the American Water Works Association administers the Level 1 Water Audit Validation (WAV) certificate program. Trainings are offered a few times each year. In 2018, the training and certification exam fee was $2,000 per individual. In addition, general field staff safety training will also be an important requirement for MWDOC field staff. The cost for safety training is estimated to be $2,000. The total training expense is therefore estimated to be $4,000. Onp,ninp FaMiptiient or Staff Related Costs Ongoing costs are anticipated to include cell phone service, auto insurance, boot allowances, uniforms, vehicle fuel, and maintenance. Some of these costs will be incurred monthly while others will be incurred annually. The annual cost for these expenses is approximately $8,600 per year. In summary, initial vehicle, equipment, and safety costs are estimated to be $76,800, and ongoing costs are estimated to be $8,600 per year. Shared Services Pricing In the private sector cost comparison section above, staff estimated the cost for MWDOC to provide each in-house shared service. These fixed unit cost estimates, provided in Table 9, will be charged by MWDOC to agencies accessing shared services. Cost estimates for level 1 water audit validation, distribution system leak detection, and distribution system pressure surveys include both administrative time to facilitate the service and time to perform the service. Cost estimates for customer meter accuracy testing and distribution system flushing only include administrative time for MWDOC staff to facilitate the contractor - provided shared services. These costs will be refined annually based on actual costs incurred. This approach will provide agencies with certainty of costs to be incurred and allow agencies to budget in advance of accessing the shared service. MWDOC will fund remaining costs not covered by participating agencies, and these costs will not be included in the OCWD groundwater customer charge. 44 Table 19: MWDOC shared services pricing Shared Service Unit Cost Water audit validation $840 per validation Customer meter testing $168 administrative fee * Distribution system leak detection $207 per mile Suspected leak survey $259 per suspected leak Pressure survey $3,360 per survey NO -DES flushing $840 administrative fee * * Unit costs for meter testing and system flushing only include administrative costs for MWDOC staff to facilitate contractor -provided shared services. Promotion MWDOC's Water Loss Control Shared Services will be promoted on an ongoing basis through a combination of core and choice services. Core services will be funded by MWDOC and will be available to all agencies. Choice services will be funded by participating retail agencies and will only be charged to those who elect to use those services at a rate proportional to the service quantity accessed. Agencies will be asked to identify the services they plan to use during the coming fiscal year. This will be conducted in coordination with the annual budgeting process to allow time for MWDOC to plan staffing and scheduling of services and for agencies to budget for the services they plan to access. Annual shared services exhibits added to the master water loss control shared services agreement will formalize each agency's participation. Should an agency not complete an annual shared services exhibit but decide mid -year to access shared services, they will be considered on a case-by-case basis as shared services resources are available. If shared services resources are not available that year, this agency will be scheduled for services on a first come -first served basis at the beginning of the following year. Water Loss Control Shared Services Agreement Agencies choosing to access MWDOC water loss control shared services will be required to sign a shared services agreement. A draft of this agreement is provided as Appendix 4. This agreement will initially have a five-year term. Annual addendums to the shared services agreement will be used to define what shared services will be accessed each year for each agency. Addendums will allow for annual adjustments to the types of services to be accessed, fees to be charged for services, and the addition of new shared services as they become available. This same agreement and addendum structures have been used effectively for the last three years for MWDOC's water loss control technical assistance program. Agencies will be asked to make their annual shared services elections in the third quarter of each fiscal year. This will allow agencies time to budget for the services within their normal budget cycle and will allow MWDOC staff time to schedule and manage workloads in the coming year. Agencies may need to supplement their election of services partway through the year, which can be accommodated by submitting an additional addendum defining the additional services. Supplemental addendums will be accepted as staffing and contract services availability permit. 45 Timelir?P Should the Board authorize implementation of the Water Loss Control Shared Services Business Plan, staff will initiate a five-year implementation plan as scheduled in Table 20. This process will begin by incorporating costs into the fiscal year 2019-20 (FY19-20) budget. As the new fiscal year draws near, staff will begin the recruitment process for the two new positions, with the goal of having the new staff start in July or August of 2019. This will allow staff to begin offering shared services at the beginning of FY19- 20 with level 1 water audit validation, leak detection, customer meter accuracy testing, and pressure surveys offered first. NO -DES distribution system flushing will require a Request for Proposals process to select contractors to provide the service. MWDOC staff anticipate this process will be complete by the end of the calendar year to allow flushing services to begin in early 2020. Over time, staff will monitor the type and volumes of shared services accessed by each agency. Monitoring will include documentation of actual costs so that the shared services charges to agencies are refined each year. In year -three (or sooner, as possible), staff will evaluate the feasibility of transitioning the meter accuracy testing and system flushing to in-house provided services. Ultimately, if this transition is found to be feasible, Board authorization will be required. Table 20: Five-year shared services implementation plan Shared Service Year I Year II Year III Year IV Year V FY 2019-20 IFY 2020-21 FY 2021-22 IFY 2022-23 FY 2023-24 Water Audit Validation MWDOC Staff MWDOC Staff MWDOC Staff MWDOC Staff MWDOC Staff Customer Meter Outside Outside Outside Vendor - Outside Vendor Outside Vendor consider MWDOC Accuracy Testing Vendor Vendor or MWDOC Staff Distribution System Leak Detection MWDOC Staff MWDOC Staff MWDOC Staff MWDOC Staff MWDOC Staff Distribution System MWDOC Staff MWDOC Staff MWDOC Staff MWDOC Staff MWDOC Staff Pressure Surveying Distribution System RFP Process to Outside Outside Outside Vendor - Outside Vendor Flushing Select Vendor Vendor Vendor considert MWDOC or MWDOC Staff Technical Advisory Committee The Water Loss Control Work Group (Work Group), comprised of MWDOC and retail water agency staff, has been actively engaged in water loss control activities since 2015. The Work Group meets every other month and has an extensive knowledge of water loss control practices and retail water agency needs. The Work Group has been instrumental in shaping the direction of water loss control, both in Orange County and across California. Moving forward, staff will utilize the Work Group as a technical advisory committee to identify, develop, and recommend water loss control shared services. Recommendations will be presented to the MWDOC Board for consideration. 46 Strategic Alliances MWDOC's water loss control shared services can foster strategic partnerships with state agencies, neighboring retailers, and private -sector experts. These partnerships could inform state and regional policy, regional collaboration and research, and funding acquisition. State Agencies and Policy Development The California State Water Resources Control Board is currently establishing water loss standards that will meet Senate Bill 555 requirements. The water loss standards will then be folded into the water budget framework under development in accordance with Executive Order B-37-16, "Making Water Conservation a California Way of Life." State Water Resources Control Board staff have solicited MWDOC's water loss analysis results to date to inform the standards setting process. However, a lack of data on the relationship between investment in water loss control and the return on that investment is hampering efforts to develop a cost -justified regulatory framework. Therefore, MWDOC is well-positioned to support retail agencies in cost-effective water loss recovery and then use the results of its program to drive the statewide conversation on water loss objectives. Water Systems Optimization Since 2016, Water Systems Optimization (WSO) has provided water loss technical assistance to MWDOC retail agencies. WSO has also supported MWDOC in developing shared services and equipment for its retail agencies, including contracted customer meter testing, a leak detection and pressure monitoring equipment lending library, and the possible future water loss control services described in this business plan. WSO could be kept under contract to support MWDOC's water loss control shared services implementation by: • Analyzing and tracking key performance indicators and return on investment • Communicating shared services results to other key stakeholders (e.g. the Department of Water Resources and State Water Resources Control Board) • Evaluating the technical merits of expended shared services • Integrating MWDOC's water loss control shared services with other water loss control analysis and intervention (e.g. water audit compilation, source meter testing) • Providing technical expertise in water loss control best practices Private Sector Service Providers MWDOC can partner with private sector service providers to meet short-term gaps in shared service availability, particularly if demand exceeds MWDOC staff's initial conservative forecasts. Additionally, private sector service providers can be contracted to provide capitally -intensive services like NO -DES flushing and customer meter testing, as previously described. Such partnerships would serve the dual purposes of supporting local private sector service providers while enabling MWDOC agencies to more quickly engage with water loss analysis and reduction. 47 Private sector service providers that MWDOC has worked with on water loss control to date include: Westerly Meter Testing (Compton) McCall's Meter Service (Hemet) Neighboring Agencies The MWDOC work group has facilitated knowledge transfer between Orange County agencies and neighboring agencies like the Metropolitan Water District of Southern California, the San Diego County Water Authority, and the City of Long Beach Water Department. Working relationships with neighboring agencies have allowed MWDOC to access additional data (e.g. customer meter test results) and service and product recommendations (e.g. Advanced Metering Infrastructure service providers). Financial Plan Staff propose that MWDOC fund all initial and ongoing equipment costs using MWDOC's general fund as a core contribution and that agencies pay for staff time associated with the shared services they access as choice services. Staff also recommend that MWDOC's core contribution be excluded from the OCWD Groundwater Customer Charge, since OCWD is not a candidate for water loss control shared services. Initial costs (for example, vehicles, equipment, and training) are required to initiate shared services. These costs include $62,400 for vehicles and accessories, $10,400 for office and safety equipment, and $4,000 for staff training. On-going costs of $10,400 per year are anticipated for cell phones, uniforms, footwear allowances, auto insurance, and vehicle fuel. Participating agencies will then fund shared services they access on a per-unit basis, as proposed in Table 21. These unit costs include salary and wages, employee benefits and other overhead costs such as office supplies, computer maintenance, software and support, telecommunication, etc. Table 21: MWDOC shared services pricing Shared Service Unit Cost Water audit validation $840 per validation Customer meter testing $168 administrative fee * Distribution system leak detection $207 per mile Suspected leak survey $259 per suspected leak Pressure survey $3,360 per survey NO -DES flushing $840 administrative fee * * Unit costs for meter testing and system flushing only include administrative costs for MWDOC staff to facilitate contractor -provided shared services. Should the initial retail agency subscriptions for shared services not fully fund the two proposed staff members, MWDOC will fund remaining costs as core activities. During this time, staff will actively promote shared services to minimize the draw of staff time on the general fund. 48 Grant Funding As is done with MWDOC's Water Use Efficiency Program, every effort will be made to access grant funding to assist with implementation of water loss control shared services. Grant funds could be used for a variety of activities, including the purchase of equipment, funding shared services, and/or conducting water loss related research. Funding opportunities include local, state and federal sources such as Metropolitan Water District of Southern California, California Department of Water Resources, California State Water Resources Control Board, and the US Bureau of Reclamation Field Services or Water Smart opportunities. To date, MWDOC staff have acquired funding for water loss control from the Bureau of Reclamation and the Metropolitan Water District of Southern California for leak detection equipment and leak detection research, respectively. The cohesion and reach of MWDOC's water loss control offerings to its retail agencies make funding more attractive to funders looking for impact, efficacy, and industry leadership. Exit Strategy If MWDOC embarked on offering shared services as described above and any of these services were no longer desired by retail agencies, staff would implement an exit strategy. The exit strategy will limit losses and will consider the following: • It is more likely that an individual shared service will be discontinued rather than all shared services. • Every effort will be made to transition in-house staff to another agency needing that individual's expertise. • Shared services equipment will be sold, if appropriate, especially to MWDOC retail agencies. • MWDOC will include a termination clause in professional services agreements between MWDOC and the contract service provider(s). 49 Appendix 1: Retail Agency Shared Services Survey Water Loss Control Shared Services Business Plan Member Agency Survey Survey Background Over the last three years, MWDOC established a comprehensive water loss control technical assistance program for water agencies throughout Orange County. This effort grew out of the legislative requirements of Senate Bill 1420 (2014) and Senate Bill 555 (2015). The program began with technical assistance, provided by Water Systems Optimization, Inc. (WSO), and included water balance compilation, component analysis, distribution system leak detection, and reporting that contains recommendations for further actions to improve an agency's understanding of water loss control opportunities within their system. This program has evolved over time with the addition of sales and production meter accuracy testing in 2016, water audit validation in 2017, and the establishment of a distribution system leak detection equipment lending library in 2018. With the exception of the equipment lending library, these services are accessed by member agencies through the "Choice" program framework; on an annual basis, agencies choose the services they desire and then pay for access to those services. During this same time, MWDOC also facilitated bi-monthly Water Loss Control Work Group meetings, open to all agencies, with the intent of furthering collaboration and understanding of broader water loss control opportunities. Since these efforts started in 2015, the level of interest from water agencies throughout Orange County for these and other water loss control services has grown. As a result, in February 2018 the MWDOC Board authorized staff to explore offering Water Loss Control Shared Services directly from MWDOC to member agencies. MWDOC staff will be developing a Water Loss Control Shared Services Business Plan (Business Plan) for review by both the member agencies and the Board. Before any shared services are provided (beyond our current offering), the Business Plan must be approved by the MWDOC Board. Staff is planning to present the draft Business Plan to the Board later this year and will continue to engage with agencies along the way. The purpose of this survey is to help MWDOC staff understand what shared services member agencies are interested in and how they should be funded. The results of this survey will be used to establish preliminary participation assumptions that will be used in developing the Business Plan, though responses to the survey are not binding. The potential water loss control shared services to be explored in this survey and possibly in the Business Plan include the following: • Annual Water Balance Validation • Water Meter Accuracy Testing (large and small sales meters) 50 • Distribution System Leak Detection • Distribution System Pressure Surveys • Distribution System Flushing The shared services could be offered using our well established "Core" and "Choice" funding framework, with "Core" activities available to all agencies funded through the MWDOC general fund and "Choice" activities funded by member agencies at the level of service of their choosing. These services could be accessed through an extended term Shared Services Agreement. The Agreement would outline the basic roles and responsibilities of MWDOC and the member agencies. Annually, each agency would complete a Shared Services Participation Exhibit. This Exhibit would identify which shared services they would like to access and at what level of service (e.g., the number of meters to be tested or miles of main to be surveyed for leaks). Agencies will have the choice to opt in or out of shared services annually/periodically. The following are basic tenets of MWDOC's Water Loss Control Shared Services: • Offer shared services at a competitive or lower cost than the same services provided by the private sector • Provide quality shared services on par with or better than the same services provided by the private sector • Realize economies of scale for these services by providing services at a regional level that cannot be justified at many local levels • Continue collaboration and shared learning among all agencies throughout this process • Phase implementation of new shared services over time, starting with the services that have the highest level of interest or demand by water agencies • Integrate program administration and data management to share results and customize program offerings to the unique conditions of each member agency As you are completing the survey, keep in mind that we do not have answers to all the questions that may come to mind at this time. We believe you will want to know the cost of these services prior to committing to such a program. The Business Plan will have estimated costs, but we do not have the costs outlined at this time. It is important that we fully understand all concerns you may have; therefore, we have provided space in the survey for you to ask questions or to express concerns. Please use these sections of the survey to bring this information to our attention. Participating in this survey is completely voluntary. However, we strongly encourage all agencies to participate in order to provide us the clearest understanding of your collective views. Additionally, taking the survey does not commit your agency to any shared service. 51 The following provides a brief description of each shared service we are exploring within the Business Plan, along with specific questions for each shared service. Water Audit Validation Shared Service Senate Bill 555 (2015) requires urban water suppliers to conduct an annual water loss audit in accordance with the method adopted by the American Water Works Association Water Audit and Loss Control Program Manual M36 using the Free Water Audit Software. The Bill also requires those audits to be independently validated by a company or individual that did not contribute to compiling the audit. Furthermore, the validator must hold a Level 1 Water Audit Validator certificate issued by the California - Nevada section of the American Water Works Association. MWDOC could provide annual Level 1 Water Audit Validation services by a certified validator for water suppliers throughout Orange County. If MWDOC provided annual Water Audit Validation services, as required by SB 555, would your agency participate? a. Highly Likely b. Likely c. Unlikely 2. Should annual Water Audit Validation be a Core or Choice funded activity? a. Core b. Choice c. Please share why you prefer this as a Core or Choice activity. 3. Please share any questions or concerns you may have regarding proposed annual Water Audit Validation shared services: Sales Meter Accuracy Testing Shared Service Sales meter accuracy testing can assess the accuracy of an agency's customer meters in order to distinguish between apparent loss and real loss in the annual water audit. Sales meter testing can also be harnessed to refine customer meter replacement schedules and confirm the performance of newly purchased meters. Large customer meter tests, particularly on high -consumption accounts, can verify accurate revenue generation on key accounts. Furthermore, some customer meter testing may be required in the future if Assembly Bill 3206 passes, though the details of such required testing have not yet solidified. 1. If MWDOC provided statistically -based Water Meter Accuracy Testing services across all customer meter sizes, would your agency access these services? a. Highly Likely b. Likely c. Unlikely 52 2. If MWDOC provided Water Meter Accuracy Testing services for new meters, would your agency access these services? a. Highly Likely b. Likely c. Unlikely 3. If MWDOC provided independent verification of meter accuracy in response to a customer claim of inaccuracy, would your agency access these services? a. Highly Likely b. Likely c. Unlikely 4. If MWDOC provided meter accuracy testing services, how many meters do you anticipate testing per year, on average? 5. Should Meter Accuracy Testing be a Core or Choice funded activity? a. Core b. Choice c. Please share why you prefer this as a Core or Choice activity. 6. Please share any questions or concerns you may have regarding proposed meter accuracy testing shared services: Distribution System Leak Detection Shared Service Acoustic leak detection identifies unsurfaced leaks using listening equipment and leak correlations. By proactively finding and repairing unsurfaced leaks, an agency can reduce real loss, avoid catastrophic infrastructure failure, minimize contaminant potential, and extend asset life. Additionally, proactive leak detection will be recognized by state regulatory agencies as a form of water loss management improvement required by Senate Bill 555. Lastly, all agencies will be required to meet water loss standards that will be published in July 2020, so proactive leak detection may be necessary to maintain compliance with impending water loss regulation. 1. If MWDOC provided partial- or full -system leak detection services for distribution infrastructure, would your agency participate? a. Highly Likely b. Likely c. Unlikely 2. If MWDOC provided partial- or full -system leak detection services, how many miles of distribution main do you anticipate surveying per year, on average? 53 3. If MWDOC provided distribution system leak detection services to check for a suspected leak, would your agency participate? a. Highly Likely b. Likely c. Unlikely 4. Should distribution system leak detection be a Core or Choice funded activity? a. Core b. Choice c. Please share why you prefer this as a Core or Choice activity. 5. Please share any questions or concerns you may have regarding proposed distribution system leak detection shared services: Distribution System Pressure Survey Shared Service Distribution system pressures can be logged for a variety of reasons: transient identification and mitigation, district metered area design, data collection that informs pressure optimization, and water audit pressure estimation, to name a few. Pressures are recorded at fire hydrants using high -frequency loggers that log data over a period of days to weeks and can identify pressure transients (also known as water hammers or pressure surges). 1. If MWDOC provided distribution system pressure surveys (system -wide or pressure zone), would your agency participate? a. Highly Likely b. Likely c. Unlikely 2. Should distribution system pressure surveys be a Core or Choice funded activity? a. Core b. Choice c. Please share why you prefer this as a Core or Choice activity. 3. Please share any questions or concerns you may have regarding proposed distribution system pressure survey shared services: Distribution System Flushing Shared Service Distribution system flushing is required to maintain water quality within the distribution system. System flushing is generally accomplished by attaching a diffuser to a fire hydrant and flushing water out of the system to convey sediment that impacts water quality. A new method of system flushing has emerged using a No -DES flushing vehicle. This vehicle not only flushes the distribution system effectively, but flush water 54 is filtered and recovered back into the distribution system, resulting in saved water and avoiding negative public perception by flushing into the street. To learn more about this system, go to: https://www.youtube.com/watch?v=k3KHPg6vmzk The City of Huntington Beach recently purchase a No-DES Truck that went operational on May 1 St, and the City of La Habra contracted to have their system flushed in 2017 using this technology. If MWDOC provided distribution system flushing services, would your agency participate? a. Highly Likely b. Likely c. Unlikely 2. If MWDOC provided distribution system flushing services, how many miles of distribution main do you anticipate flushing per year, on average? 3. Should distribution system flushing be a Core or Choice funded activity? a. Core b. Choice c. Please share why you prefer this as a Core or Choice activity. 4. Please share any questions or concerns you may have regarding proposed distribution system flushing shared services: 55 Appendix 2: Shared Services Survey Responses Water Audit Validation Shared Service If MWDOC Should Please share why you prefer this Please share any provided annual annual Water as a Core or Choice activity. questions or concerns Water Audit Audit you may have regarding Validation Validation be proposed annual Water Services, as a Core or Audit Validation Shared required by SS Choice Services. 555, would your funded agency activity? participate? City of Anaheim Likely Choice The Core and Choice funding do not None. apply to Anaheim. Anaheim funding will be per Master Agreement between MWDOC and Anaheim. City of Brea Highly Likely Core requirement of the state none City of Buena Highly Likely Choice Agency should have the choice to use none Park this service. City of Fountain Highly Likely Core It should be a Core activity since it is none Valley required of all agencies and cost sharing through MWDOC is the most beneficial method to all agencies. City of Fullerton Highly Likely Choice We would most likely participate, but if Would this be done by a something were to change, either MWDOC employee or a third internally here or at the state level, we party like WSO? would like the chance to opt out. City of Garden Likely Choice It just makes sense. None Grove City of Highly Likely Choice If an agency does not wish to none at this time Huntington participate, they should not be forced Beach to subsidize other agencies who are. City of La Habra Highly Likely Choice I like the freedom of choice and am I don't have any questions. I willing to pay for those services that appreciate the shared are utilized. I understand that not all services and view them as a agencies have the capacity to perform highly qualified extension of these additional responsibilities our workforcel without additional personnel or impacting current responsibilities. City of La Palma Highly Likely Choice Though some agencies may choose to None at this time. have an agency representative get certified to perform in-house validation, La Palma given its staffing level would continue to enlist the aid of MWDOC and WSO for the compilation of its water loss audit and ultimate validation. City of Newport Highly Likely Choice I think member agencies should have No concerns Beach the opportunity to opt in or out of the service depending on if they have someone in-house to provide these services for them. The cost of the program should not be put on those agencies opting out of the service. City of Orange Highly Likely Choice We would like to have the flexibility of Cost selecting the activities that fit our specific needs. City of San Highly Likely Core At least for this coming year it seems I hope to see an economy of Clemente almost all agencies would benefit from scale in the pricing of validation services and thus the cost I validation services through a 56 57 could be shared across all of MWDOC. MWDOC staff or contracted However, in future years, as agencies validator - along with invest in getting their staff validated, it streamlined contracting, it might be better served as a Choice will help justify the cost activity. compared to us getting an individual contractor on board at the City to do this for us. City of San Juan Likely Choice A central common auditor would The auditor needs to stick to Capistrano streamline the process. the strict criteria of the audit requirements, and not make an extended project out of it. City of Santa Ana Highly Likely Choice It seems the best fit for Santa Ana - This year we are using WSO MWDOC relationship. to perform and validate our FY 2017/18 audit. We anticipate using consultant services to fill this need moving forward. City of Seal Highly Likely Core Since every agency/district must NA Beach perform this activity, it seems natural to include this work as a part of MWDOC's services to all agencies/districts City of Tustin Likely Choice Allows for equitable cost sharing and done allows agencies to opt out of services they do not wish to use. City of Highly Likely Core Westminster has minimal staff. With Westminster would Westminster only one analyst to fill out the water absolutely use this service audit, there is no second person readily and all aspects of the shared available in-house to validate. We service are of interest to would be required to become Westminster. validators which is a large burden for a small agency. East Orange Highly Likely Choice Better opportunities for cost control I don't understand the scope County W.D. and efficiency of the water audit services and how or if the size of the agency affects the cost/level of effort. EI Toro W.D. Highly Likely Choice Individual agencies are making choices How much time would whether or not to participate in the MWDOC need to complete service. The cost should not be shared the validation? When would by agencies not choosing to benefit the Water Audit need to be from the service. submitted to MWDOC to provide enough time to complete the validation such that the agencies can meet the Water Audit submittal deadline? Irvine Ranch Highly Likely Core There is currently a limited number of Inclusion of this as either a W.D. certified and experienced data core or choice option should validators. be reviewed annually as the pool and pricing for data validators grows. Laguna Beach Likely Choice Some agencies may choose to handle With the wide variation in County W.D. this audit differently. complexity, it may be difficult to determine the work involved. Mesa W. D. Highly Likely Choice Some agencies may have an in-house Oh, I think this is a great certified validator. idea. With MWDOC providing the validation, OC agencies will have consistency in data validation scores and our 57 58 relative scores will reflect relative data validity. Moulton Niguel Likely Core The annual water audit validation is Service must be W.D. now a state-wide requirement. offered at competitive or lower cost than found elsewhere. Santa Margarita Likely Choice While SMWD is pursuing certification Only concern is that SMWD W.D. for validation, we would prefer having anticipates doing more in - a 3rd party validation. That being said, depth validations some other agencies might prefer to periodically on our own. have the option to validate themselves or have another vendor perform the function. Serrano W.D. Likely Choice I think that you are more likely to get no concerns the program support from agencies if it is Choice. South Coast Highly Likely Core State mandated. WSO has clarified all W.D. concerns to date. Trabuco Canyon Highly Likely Core Required by regulations None W.D. Yorba Linda Highly Likely Core Core, because of the difficulty If shared services for Audit W.D. becoming a certified validator. Validation take away a lot of money from other potential services, we may want to opt -out of this particular item. 58 Sales Meter Accuracy Testing Shared Service If MWDOC If If MWDOC If MWDOC Should Please share why Please share provided MWDOC provided provided Meter you prefer this any questions statistically- provided independent Meter Accuracy as a Core or or concerns based Water verification Accuracy Testing Choice activity. you may have Water Meter of meter Testing be a regarding Meter Accuracy accuracyin Services, Core or proposed Accuracy Testing response to how many Choice Meter Testing Services a customer meters do funded Accuracy Services for new claim of you activity? Testing across all meters, inaccuracy, anticipate Shared customer would would your testing per Services. meter sizes, your agency year, on would your agency access these average? agency access services? access these these services? services? City of Likely Likely Likely 300-400 Choice The Core and None. Anaheim Choice funding do not apply to Anaheim. Anaheim funding will be per Master Agreement between MWDOC and Anaheim. City of Brea Unlikely Unlikely Unlikely 0 Choice we do in house none City of Unlikely Unlikely Unlikely Unsure Choice Agencies should none Buena Park choose City of Likely Unlikely Likely 350 Choice It should be a none Fountain Choice activity Valley because only select agencies would participate in this. City of Likely Unlikely Likely Cost Choice We have our own N/A Fullerton dependant meter testing bench for smaller meters and meter testing truck for larger meters. The only reason we don't use them as much as we could is because we don't have the staff. City of Likely Likely Likely 500 to Choice It just makes sense. None Garden 1000 Grove City of Unlikely Unlikely Unlikely 0 Choice If an agency does None at this Huntington not wish to time Beach participate, they should not be forced to subsidize those who do. City of La Highly Highly Highly 100 Choice I don't have staff or No problems. Habra Likely Likely Likely equipment to I've participated conduct testing in the past and whereas other benefitted from agencies might, so I a scale of think it reasonable economy rate. that this activity is 59 60 offered as a choice Happy with the rather than a core results. function. City of La Highly Likely Likely 25 to 50 Choice Some agencies may None at this Palma Likely already perform time. this service in- house and may not find this necessary as a Core MWDOC activity. Given its staffing level La Palma would not perform this service in-house but would benefit from the economies of scale for this annual testing service. City of Likely Likely Likely 200 Choice Same answer as No concerns. Newport before. some Beach agencies may have their own agreements in place for this service. City of Likely Likely Likely Around Choice Our annual budget None at this Orange 200 may not allow us to ll time. participate in all activities. City of San Unlikely Unlikely Unlikely 0 Choice Choice, because Our agency has Clemente many agencies a long-standing already have meter individual testing programs contract with a that they may meter testing prefer to maintain company and it rather than going meets our through MWDOC needs entirely with a new while giving us contractor/process. direct access to testing professionals for efficient and quick services..... so we would not be terribly interested in the choice program for this item. City of San Likely Likely Unlikely 100 Choice To have a None. Juan choice. Capistrano City of Santa Likely Unlikely Unlikely 100 Choice It seems the best fit We are Ana for Santa Ana - currently more MWDOC likely to utilize relationship. meter testing services to focus on our large meter inventory rather than trying to establish a statistical 60 61 baseline for the city. City of Seal Highly Highly Unlikely 50 Core Again, if all NA Beach Likely Likely agencies must perform this activity per state law, why not consolidate these services in one area (MWDOCi at a lower cost than doing agency by agency City of Likely Unlikely Unlikely 100 Choice same as last z none Tustin City of Highly Likely Unlikely 200 Core Economy of scale. This could be a Westminster Likely We believe all function that is agencies will rolled out eventually be eventually. If required to do this, this starts as a and a core function choice function, will lower cost on a and moves to county-wide scale. core, we would wait to add on as this is not currently urgent. East Orange Likely Likely Likely 25-40 Choice Better I think MWDOC County W.D. opportunities for should contract cost control out for this service and not hire this type of specialized service in-house EI Toro W.D. Unlikely Unlikely Likely Minimal. Choice Individual agencies Meter testing are making choices in responsed whether or not to to customer participate in the claims of service. The cost None inaccuracy should not be are expected shared by agencies to be very not choosing to Infrequent. benefit from the service. Irvine Ranch Unlikely Unlikely Unlikely 0 Choice IRWD conducts its This is a good W.D. own meter testing. service for agencies that do not otherwise have a means to test meters. The costs should be covered by the agencies that use the service not all MWDOC member agencies Laguna Unlikely Unlikely Unlikely None Choice Since, we would None Beach not use this service County W.D. we would prefer it be choice. Mesa Water Highly Highly Highly 300 Choice Some agencies No concerns. District Likely Likely Likely have in house This is a great meter test idea. benches. 61 Moulton Unlikely Unlikely Unlikely 0 Choice Moulton Niguel has N/A Niguel W.D. Its own meter test bench and trained technicians. Santa Highly Unlikely Unlikely Unknown Choice Some agencies The statistically - Margarita Likely won't be interested based portion W.D. and/or have their of the water own test benches. meter accuracy testing is what's interesting to me. Based off the data validity grades provided in the AWWA spreadsheet, having the testing be statistically - validated will be incredibly helpful. One of the requirements that SMWD would have is that we want to perform in-line testing so that customers are not inconvenienced. Serrano Highly Unlikely Highly 30 Choice Same reason as None W.D. Likely Likely abpove South Coast Highly Unlikely Likely 50 meters Choice So it is an option. None at this W.D. Likely time. Trabuco Highly Unlikely Likely 45 Choice some agencies None Canyon Likely have their own test W.D. benches and would not utilize the service Yorba Linda Highly Likely Highly 500 to Choice Choice, so agencies The same W.D. Likely Likely 1,000 can op -out. concern as the one listed in response to item number five. 62 Distribution System Leak Detection Shared Service> If MWDOC If MWDOC If MWDOC Should Please share why Please share provided provided provided Distribution you prefer this as any questions partial- or full- Distribution partial or full System Leak a Core or Choice or concerns system Leak System Leak system Leak Detection activity. you may have Detection Detection Detection be a Core or regarding Services for Services to Services, how Choice proposed distribution check for a many miles of funded Distribution infrastructure, suspected distribution activity? System Leak would your leak, would main do you Detection agency your agency anticipate Shared participate? participate? surveying per Services. year, on average? City of Likely Likely 50 Choice The Core and Choice None. Anaheim funding do not apply to Anaheim. Anaheim funding will be per Master Agreement between MWDOC and Anaheim. City of Brea Likely Likely 100 Choice unsure If we would none need the service offered City of Buena Likely Likely 3-5 Choice Agencies should none Park choose City of Likely Likely 20 Choice It should be a none Fountain Choice activity Valley because only select agencies would participate in this. City of Unlikely Unlikely 0 Choice At the moment, we Come back to us Fullerton have to many main with this breaks to take care question in 5-10 of before we really years. Hopefully start leak detection. we'll have gotten some of the main breaks under control by then. City of Likely Likely At least 1 mile Core Because we have None Garden aged distribution Grove system. City of Unlikely Unlikely 0 Choice If an agency does None at this Huntington not wish to time Beach participate, they should not be forced to subsidize those who do. City of La Likely Unlikely 50 Choice Same reasons as Good service. Habra previous two Large scale of services. inspections completed in a short period of time. City of La Highly Likely Highly Likely 2 to 5 Choice La Palma would None at this Palma certainly benefit time. from the economies of scale for such services but unsure 63 64 of this as a Core MWDOC function. City Of Unlikely Unlikely 0 Choice Same as before No concerns Newport Beach City Of Unlikely Unlikely Not sure Choice Up to now, the cost While the leak Orange per mile of leak detection result detection seems is definitely pretty high. useful to water Hopefully with agencies, the higher participation restrained budget rate from agencies, may prevent us the cost would be from completely somewhat more repair all the affordable. found leaks. City of San Unlikely Unlikely 50 Choice Our agency has Concerns include Clemente somewhat cost/cost- distinctive leak effectiveness, detection needs response time that are better (would still need served by our own to rely on own leak detection staff for time - program. Paying for sensitive leak a core program that detection tasks), has somewhat how different primary comprehensive objectives (i.e. the service is and water loss control what type of leak versus slope detection protection and risk methods are management) may involved, and the be helpful but may reliability of the also be redundant work - performed for some agencies in by MWDOC staff? our situatiob. contractor? with Choice programs what training? give agencies the opportunity to opt in/out depending on their own individual cost/benefit analysis and current spending and resources. City of San Likely Likely 10 Choice The need for the The methodology Juan service is not clearly of the leak Capistrano defined in San Juan. detection is unspecified. We havefound acoustic testing lacking in clear benefits; and prefer correlative leak detection methods. City Of Santa Unlikely Unlikely 0 Choice It seems the best fit We are currently Ana for Santa Ana - pursuing an AMI MWDOC project and relationship. anticipate incorporating leak detection capabilities into the future AMI system. 64 City of Seal Highly Likely Highly Likely 10 Core Same as previous NA Beach answers. Since all agencies would have to perform these services, why not consolidate into one agency (MWDOQ performing this services for all agencies at a probably lower cost than performing these services alone City of Tustin Likely Likely 10 Choice same as other ? none City of Unlikely Likely 20 Choice Our system Is Westminster is Westminster currently tight. Not not entirely a needed function convinced of at this point. the technology. Having some interaction with new technology may help. East Orange Highly Likely Highley Likely 0-40 Choice Better opportunity Contract for this County W.D. for cost control service/provide cost savings through combined purchasing power - this is evolving technology and effectiveness can be highly variable depending upon pipe type and operator skill EI Toro W.D. Unlikely Unlikely 0 Choice Individual agencies None are making choices whether or not to participate in the service. The cost should not be shared by agencies not choosing to benefit from the service. Irvine Ranch Unlikely Unlikely 0 Choice IRWD implements This is a good W.D. its own leak service for detection program. agencies that do not otherwise have leak detection programs. The costs should be covered by the agencies that use the service not all MWDOC member agencies Laguna Unlikely Unlikely None Choice We would not None Beach utilize this service. County W.D. 65 Mesa Water Likely Likely To meet SB Choice Some agencies may I think its a good District 555 already have an choice option. requirement effective in house leak detection program. Also, I think we would only do leak detection if it is required by SB 555. Moulton Unlikely Unlikely 0 Choice Moulton Niguel will N/A Niguel W.D. perform this activity in-house. Santa Unlikely Unlikely 0 Choice SMWD wouldn't Our component Margarita want to analysis shows W.D. participate in this that it would for several years. not be cost- effective to perform leak detection for quite some time. Serrano W.D. Highly Likely Highly Likely 5 Choice More likely None support South Coast Highly Likely Highly Likely 180 miles Choice It should be an None at this W.D. option. time. Trabuco Unlikely Likely Unknown Choice Not all agencies Expensive and Canyon W.D. would need this may not be service funded Yorba Linda Highly Likely Highly Likely TBD Core Core, because YLWD The same W.D. desires to complete concern as the leak detection one listed in within the entire response to item District within number five. approximately 18 - months. 66 Distribution System Pressure Surveys If MWDOC Should Please share why you prefer Please share any provided Distribution this as a Core or Choice activity. questions or concerns Distribution system you may have regarding System Pressure Pressure proposed Distribution Surveys (system- Surveys be a System Pressure Survey wide or pressure Core or Choice Shared Services. zone), would your funded agency activity? participate? City of Anaheim Likely Choice The Core and Choice funding do not None. apply to Anaheim. Anaheim funding will be per Master Agreement between MWDOC and Anaheim. City of Brea Unlikely Choice we manage internally none City of Buena Unlikely Choice Agencies should choose none Park City of Fountain Likely Choice This should be a Choice activity none Valley because only select agencies would participate in this. City of Fullerton Unlikely Choice I'm not sure what this is. Is this like N/A Surge Detection? If yes, then we would like to participate in it. City of Garden Likely Core Because we have aged distribution None Grove system. City of Unlikely Choice If an agency does not wish to None at this time Huntington participate, they should not be Beach forced to subsidize those who do. City of La Habra Likely Choice For the same reasons as noted with I don't know enough on this previous activities. topic and the scope of the services. We are deploying battery -powered loggers in our system that provide real-time data to a cloud based server. City of La Palma Likely Choice La Palma would certainly benefit None at this time. from the economies of scale for such services but unsure of this as a Core MWDOC function. City of Newport Unlikely Choice Same as before. No Concerns Beach City of Orange Likely Choice Flexibility None City of San Unlikely Choice Similar to our opinion on other Cost, and possible Clemente shared services, the unique redundancy with what challenges (topography) of our agency's service area means we we already manage would prefer to be able to opt out and monitor. of a shared services that works for many agencies, but does not add as much value for us. We already monitor pressure at many turnouts and pump stations throughout our hilly service area so we might be better off using the potential cost of this shared service to work with a consultant to refine our pressure management through modeling. City of San Juan Unlikely Choice We do not see an immediate value None. Capistrano in this in that we know what our Pare, and cannot lower 67 68 them without loosing service in the higher elevations of any particular pressure zone. City of Santa Ana Unlikely Choice It seems the best fit for Santa Ana - City is considering AMI MWDOC relationship. systems which may be able to incorporate pressure monitoring/survey. City of Seal Highly Likely Core same answers as before. If it is a My City has only one Beach new requirement of the state as a pressure zone, so I am not part of the water loss control audit, completely sure how this then perform it for all agencies as a service will affect/help my part of the Core program. city. However, if it is a core program, then we will be a part of it. City of Tustin Unlikely Choice same as other ? none City of Unlikely Choice Not needed at this point in time. Westminster does not Westminster believe it has pressure problems. East Orange Unlikely Choice Better cost control opportunity We do this in-house County W.D. EI Toro W.D. Unlikely Choice Individual agencies are making None choices whether or not to participate in the service. The cost should not be shared by agencies not choosing to benefit from the service. Irvine Ranch Unlikely Choice IRWD currently monitors system The costs should be covered W.D. pressure. by the agencies that use the service not all MWDOC member agencies Laguna Beach Unlikely Choice This would not be helpful for our None. County W.D. system. Mesa Water Likely Choice Some agencies have established It would need to be done to District pressure monitoring. a standard that we could the pressure data to calibrate our hydraulic model, and maybe even provide the data to developers for fire sprinkler calcs. Moulton Niguel Likely Choice Ability to opt in or out is desired. Does this shared service W.D. only provide the equipment, or would technical support also be included? What would be the frequency of testing? What would be the next steps if and when transients are identified? Santa Margarita Likely Choice Some utilities may not want to This is an intriguing option W.D. participate. that SMWD would be interested in. We don't have the available bandwidth to go install the loggers, collect the loggers, and combine the data. In addition, we have too many pressure zones to get an accurate picture with our available pressure loggers. ano W.D. Likely Choice More likely support None th Coast Fsw� Likely Choice Like options. None. . 68 Trabuco Canyon Likely Choice Not needed by all Agencies This is a valuable service if it W.D. can be funded by the Agency. Yorba Linda Unlikely Choice Choice, because we only The same concern as the W.D. occasionally need to monitor one listed in response to pressures and we have an in-house item number five. monitoring program. 69 Distribution System Flushing Shared Services If MWDOC If MWDOC Should Please share why Please share any provided provided Distribution you prefer this as a questions or Distribution Distribution System System Flushing Core or Choice concerns you System Flushing Services, Services be a Core activity. may have Flushing how many miles of or Choice funded regarding Services, distribution main activity? proposed would your do you anticipate Distribution agency flushing per year, System Flushing participate? on average? Shared Services. City of Likely 20 Choice The Core and Choice None. Anaheim funding do not apply to Anaheim. Anaheim funding will be per Master Agreement between MWDOC and Anaheim. City of Brea Likely 30 Choice we have a loop none system City of Buena Likely Unknown Choice Agencies should none Park choose City of Likely 202 Choice It should be a Choice none Fountain Valley activity because only select agencies would participate in this. City of Unlikely 0 Choice Our maintenance N/A Fullerton crews currently perform their own hydrant flushing program. City of Garden Unlikely Don't know Choice It just makes sense. None Grove City of Unlikely 0 Choice If an agency does not None at this Huntington wish to participate, time Beach they should not be forced to subsidize those who do. City of La Highly Likely 25 Choice Prefer as a choice Great ideal I would Habra activity considering like to get on a current staffing levels regular cycle of and the time flushing and constraints for this outsourcing this type of work. type of work is a viable way to get it done. City of La Highly Likely 42 dead ends and Choice La Palma would Nome at this Palma approximately 10 certainly benefit from time. miles of mains to the economies of scale for such services begin with but unsure of this as a Core MWDOC function. City of Unlikely 0 Choice Same as before NO concerns Newport Beach City of Orange Likely Unsure Choice Flexibility Will it be uni- directional flushing? City of San Unlikely 100 Choice the level of service Cost, level of Clemente may not be enough to service, training to cover our entire use the equipment system at the rate at (assuming we 70 71 which we need to would provide the flush, so this activity operator?). We would best serve us also have 303 dead as a supplement to ends in addition to traditional flushing all of our hydrants that we could opt in that we already to on an annual basis, invest a lot of time but be able to opt out and money into of in years when managing with coordinating between traditional flushing, two types of flushing so using this service activities is too would require cumbersome and/or some operational costly. adjustments in staffing, scheduling, etc. City of San Likely 50 Choice We have a contract None. Juan flushing program in Capistrano place. City of Santa Likely Not yet Choice It seems the best fit None. Ana determined for Santa Ana - MWDOC relationship. City of Seal Likely 10 Core Same answers as Seal Beach provides Beach before only about 1 mile of flushing every couple of years (not counting dead ends we flush City of Tustin Likely 1 Choice we would only use none this service as needed. City of Likely 63 Core It's a needed function This also depends Westminster that we haven't done on drought because of the conditions. drought. If we could incorporate the NO- DES truck, we'd be interested. East Orange Highly Likely 20 Choice Better opportunity for Do this via contract County W.D. cost control service or assist with grant purchase opportunity - don't hire in-house EI Toro W.D. Unlikely 0 Choice Individual agencies None are making choices whether or not to participate in the service. The cost should not be shared by agencies not choosing to benefit from the service. Irvine Ranch Unlikely 0 Choice IRWD implements its The costs should be W.D. own programs. covered by the agencies that use the service not all MWDOC member agencies Laguna Beach Unlikely None Choice We would not utilize None County W.D. this service. Mesa Water Likely 10? Choice Cost No-Dez may be District cost prohibitive 71 72 compared to traditional flushing. Moulton Unlikely 0 Choice Ability to opt in or out It is our Niguel W.D. is desired. understanding that this type of flushing Is mainly used to remove sediment, which our distribution system does not typically have to deal with. Our system does not have large particulates, turbidity, or residual problems. When our system requires flushing, we don't want to put the water back Into the system. Santa Unlikely 0 Choice Choice given that this Unless the cost was Margarita W.D. has been significantly significantly lower more expensive than than what we've just flushing seen, SMWD would traditionally. probably not be interested. Serrano W.D. Unlikely 0 Choice Likely support none South Coast Unlikely N/A Choice Should be an None. W.D. option. Trabuco Unlikely Unknown Choice TCWD internal staff I believe there is Canyon W.D. would perform this more value to the Agency to perform this service themselves. Yorba Linda Highly Likely Approx. 75 -miles. Choice Choice, so other The same concern W.D.agencies can as the one listed in participate or opt- response to item out. I number five. 72 Appendix 3: Job Descriptions MUNICIPAL WATER DISTRICT OF ORANGE COUNTY JOB TITLE: WATER LOSS CONTROL PROGRAMS SUPERVISOR DEPARTMENT: WATER USE EFFICIENCY SUPERVISOR: DIRECTOR OF WUE STATUS: NON-EXEMPT SALARY GRADE: TBD Position Summary: Under general supervision, the Water Loss Control Programs Supervisor is responsible for overseeing implementation of Water Loss Control Services including Water Audit Validation, Distribution System Leak Detection, Distribution System Pressure Surveys, and Distribution System Flushing. These services will be provided by the District to its retail water agencies throughout Orange County. Duties and Responsibilities (Essential Functions): • Supervise the overall implementation of Water Loss Control Services Program including supervision and evaluation of subordinate staff, consultants and other service providers. • Schedule and coordinate shared services with up to 32 retail water agencies. • Conduct Water Balance Validations for up to 32 retail water agencies in accordance with SB 555 requirements. • Present progress, findings, and available services at bi-monthly District water loss control work group meetings. • Ensure compliance with all District policies. • Conduct performance management review of employees. • Provide reports or updates on implementation and impact of services to management, accounting and retail agency staff. • Prepare Request for Proposals and make recommendations to management and the Board for contract services as needed to perform shared services. • Ensure that proper use and maintenance of District vehicles are adhered to while performing job duties and any District related duties. Qualifications (Knowledge, Skills and Abilities): Knowledge of: Water loss control strategies and implementation plans, including: • water audit compilation and validation methodology • pressure management • proactive leak detection • customer meter accuracy testing and management 73 • distribution system flushing • progress tracking mechanisms • water loss and conservation regulations in California Ability to: • Effectively communicate both orally and in writing. • Operate in a Microsoft Office Suite software environment, with specific proficiency in Microsoft Excel. • Communicate effectively with all levels including management, office/field employees, member agencies and retail customers, and outside contractors/vendors. • Represent the District in a professional manner when dealing with member agencies and retail customers, outside contractors and agency officials. • Advise and provide interpretation to others on how to apply policies, procedures and standards to specific situations. • Establish and maintain effective working relationships with all those encountered in the course of work. • Use good personal judgement and discretion in performing all job functions. • Exercise independent judgement when making decisions involving specific job functions, shutdowns and most efficient utilization of staff and equipment in absence of Supervisor. • Calculate water formulas and interpret application tables and charts; knowledge of algebra and basic statistics. • Practice safe work methods in the course of work. Education and Experience: Graduation from high school or G.E.D. equivalent. An Associate degree in water and/or wastewater treatment environmental studies, mechanical or electrical engineering is preferred. Five (5) years of increasingly responsible experience in the operation, maintenance, and repair of operation of underground water utilities. The qualification guidelines generally describe the knowledge and ability required to enter the job in order to successfully perform the assigned duties. Any combination of education, experience and training that would provide the required knowledge, skills and abilities will be considered. Other Requirements: 1) Possess and maintain or ability to acquire a valid Cal-Nev American Water Works Association Water Audit Validator Certification, 2) possess and maintain a California State Water Resources Control Board Grade 2 Water Distribution Certificate, or the ability to obtain within one year of hire date and 3) possess and maintain a valid California driver's license 74 All District employees are Disaster Service Workers by CA state law and are expected to participate in emergency response initiatives. This could include contributing to the emergency planning process, participating in disaster exercises and training, as well as potentially responding to support actual emergency events. Working Conditions and Physical Activities: Environment: The employee works in a shop and field environment where the noise level is typically moderate. The employee works in outdoor weather conditions; extreme heat or cold; wet humid conditions; precarious places; on uneven or slippery surfaces; near moving mechanical parts; near moving equipment; and near heavy traffic. The employee is occasionally exposed to loud or prolonged noise and equipment with heavy vibrations. The employee may be exposed to environmental factors. Physical Demands: While performing the duties of this job, the employee is regularly required to walk and stand; talk and hear; use hands to finger, handle, feel or operate objects, tools or controls; balance on ladders or stairs; stoop, kneel, bend at the waist, crouch or crawl; and smell. The employee will be required to lift up to 50 pounds and may be required to lift up to 100 pounds with assistance. The employee must walk frequently. Visual ability (which may be corrected) to read handheld meter reading device screens, small print, including good peripheral vision and depth perception. Specific vision abilities required by this job include close vision, distance vision, and peripheral. MUNICIPAL WATER DISTRICT OF ORANGE COUNTY JOB TITLE: WATER LOSS CONTROL PROGRAMS TECHNICIAN - LEAK DETECTION DEPARTMENT: WATER USE EFFICIENCY SUPERVISOR: WATER LOSS CONTROL PROGRAMS SUPERVISOR STATUS: NON-EXEMPT SALARY GRADE: TBD Position Summary: Under direct supervision, provide Distribution System Leak Detection services to up to 32 retail water agencies throughout Orange County. Assists the Water Loss Control Programs Supervisor in day-to-day operations of meter accuracy testing activities. Candidate will also periodically participate in distribution system pressure surveys of retail systems. Operate a District vehicle and utilize and operate required machinery essential to perform the job. Duties and Responsibilities (Essential Functions): The duties listed below are intended only as illustrations of the various types of work that may be performed. The omission of specific statements of duties does not exclude them from the position if the work is similar, related or a logical assignment to this class. 75 • Ability to walk frequently during the course of the workday locating underground water leaks using a variety of tools, including but not limited to acoustic leak sounding rods, ground microphones, and leak correlators. • Determine the source of leak and who is responsible for repair (retail agency or other agency.) • Document suspected leaks and confirmed leaks thoroughly, according to District documentation standards and using District documentation forms. • Drive, operate and maintain equipment, tools, and vehicles. • Routinely required to work in the roadway and provide traffic control, according to District safety standards. • Read and interpret blueprints, maps, atlases, and specifications. • Deploy and recover distribution system pressure loggers on retail water agency distribution systems throughout Orange County. • Develop and maintain positive working relationships with District and member agency staff and members of the public. • Ability to communicate effectively with retail water agency staff and all individuals who the position interacts with while representing the District. • Provide equipment and maintenance support to member agency/retail staff. • Comply with applicable retail agency procedures. • Ensure job site is left safe and clean. • Responsible for keeping accurate journals and work assignments. • Comply with safety work-related practices and attend relevant safety training. Qualifications: • High school graduation or equivalent. • 1-3 years of experience in water maintenance work or related field. • Familiarity with hand and power tools. • Familiarity with Windows based computerized environment and Preventive Maintenance database programs is highly desirable. • Knowledgeable in the maintenance and operation of water distributions systems. Knowledge of: • Methods and procedures used in pulling and repairing large water meters and other equipment. • Traffic control practices and requirements. • Safety policies, procedures and safe work practices applicable to assignment including OSHA regulations. • Principles and practices of sound business communication; correct English usage, including spelling, grammar and punctuation. • Records management, recordkeeping, filing and basic purchasing practices and procedures. 76 • Use and operation of computers, and preventive maintenance database programs. Ability to: • Effectively communicate both orally and in writing, with all levels of staff, including retail water agency staff, customers, office/field employees, management and vendors. • Represent the District in a professional manner when dealing with retail water agency staff, customers, outside contractors and agency officials. • Advise and provide interpretation to others on how to apply policies, procedures and standards to specific situations. • Calculate water formulas and interpret applicable tables and chart; knowledge of algebra. • Establish and maintain effective working relationships with all those encountered in the course of work. • Use good personal judgement and discretion in performing all job functions. • Exercise independent judgment when making decisions involving specific job functions, shutdowns and most efficient utilization of staff and equipment in absence of Supervisor. • Fully and accurately document suspected and confirmed leaks, including location and degree of certainty. • Practice safe work methods in the course of work. Education and Experience: Graduation from high school or GED equivalent and 1-3 years of experience reading meters and testing or replacing/repairing or calibrating meters (5/8" through 36") in either the field or shop settings. Other Requirements: 1) Possess and maintain or ability to acquire a valid Cal-Nev American Water Works Association Water Audit Validator Certification, 2) possess and maintain a California State Water Resources Control Board Grade 2 Water Distribution Certificate, or the ability to obtain within one year of hire date and 3) possess and maintain a valid California driver's license and automobile insurance under the terms of the District's Vehicle Insurance Policy. All District employees are Disaster Service Workers by CA state law and are expected to participate in emergency response initiatives. This could include contributing to the emergency planning process, participating in disaster exercises and training, as well as potentially responding to support actual emergency events. Working Conditions and Physical Activities: Environment: The employee works in a shop and field environment where the noise level is typically moderate. The employee works in outdoor weather conditions; extreme heat or cold; wet humid conditions; precarious places; on uneven or slippery surfaces; near moving mechanical parts; near 77 moving equipment; and near heavy traffic. The employee is occasionally exposed to loud or prolonged noise and equipment with heavy vibrations. The employee may be exposed to environmental factors. Physical Demands: While performing the duties of this job, the employee is regularly required to walk and stand; talk and hear; use hands to finger, handle, feel or operate objects, tools or controls; balance on ladders or stairs; stoop, kneel, bend at the waist, crouch or crawl; and smell. The employee may be required to lift up to 50 pounds; and may be required to lift up to 100 pounds with assistance. The employee must walk frequently. Visual ability (which may be corrected) to read handheld meter reading device screens, small print, including good peripheral vision and depth perception. Specific vision abilities required by this job include close vision, distance vision, and peripheral. 78 EXHIBIT C Insurance Requirements MWDOC shall obtain prior to commencing work and maintain in force and effect throughout the term of this AGREEMENT, all insurance set forth below. MWDOC insurance is provided through the Association of California Water Agencies Joint Powers Insurance Authority and such other insurers as MWDOC may determine from time to time. A. Workers' Compensation Insurance MWDOC will keep workers' compensation insurance for its employees in effect during all work covered by this AGREEMENT in accordance with applicable law. MWDOC will provide an ACORD certificate of insurance or other certificate of insurance satisfactory to PARTICIPATING AGENCY, evidencing such coverage. B. Liability and Other Insurance MWDOC will maintain during the term of this AGREEMENT general liability coverage of not less than $1,000,000 per occurrence for bodily injury, personal injury and property damage; automobile liability (owned, scheduled, non -owned or hired) of at least $1,000,000 for bodily injury and property damage each accident limit; workers' compensation (statutory limits) and employer's liability ($1,000,000) (if applicable); requiring 30 days (10 days for non payment of premium) notice of cancellation to PARTICIPATING AGENCY. MWDOC's insurance coverage shall be primary insurance as respects PARTICIPATING AGENCY, its directors, officers, agents, employees, attorneys, and authorized volunteers for all liability arising out of the activities performed by or on behalf of the PARTICIPATING AGENCY. Any insurance pool coverage, or self-insurance maintained by PARTICIPATING AGENCY, and its directors, officers, agents, employees, attorneys, or authorized volunteers shall be excess of MWDOC's insurance and shall not contribute to it. C. Contractor Insurance Coverage. In the event that the MWDOC employs Contractors as part of the work covered by the AGREEMENT, it shall be the MWDOC's responsibility to require and confirm that each Contractor meets the minimum insurance requirements specified herein. All Contractor insurance shall be placed with a carrier with an A.M. Best rating of no less than A: VII, or equivalent. Contractor will provide a certificate of insurance to MWDOC which names MWDOC and all PARTICIPATING AGENCIES as additional insureds. D. Expiration of Coverage If any of the required coverages expire during the term of the AGREEMENT, MWDOC and its Contractors, as applicable, shall deliver the renewal certificate(s) including the general liability additional insured endorsement to DISTRICT at least ten (10) days prior to the expiration date. WATER LOSS CONTROL SHARED SERVICES AGREEMENT This Water Loss Control Shared Services Agreement ("Agreement") is made and entered into as of 2019, by and between the Municipal Water District of Orange County ("MWDOC") and City of Seal Beach ("Participating Agency"). MWDOC and Participating Agency may be collectively referred to as "Parties" and individually as a "Party." RECITALS A. MWDOC offers its member agencies ("Member Agencies") the benefits of certain programs called choice services, which are services that MWDOC makes available to Member Agencies that they may elect to participate in or not ("Choice Services"). B. If Member Agencies elect to receive certain Choice Services, they execute an agreement with MWDOC that sets forth the terms and conditions for such Choice Services. C. Through these agreements MWDOC offers cost sharing and shared services components that allow Member Agencies to obtain economies of scale and save money on such Choice Services. D. With input from its Member Agencies, MWDOC prepared a Water Loss Control Shared Services Business Plan, which proposed five water loss control shared services that would be provided to Member Agencies by MWDOC staff and, as necessary and as determined by MWDOC, third party vendors/contractors ("Contractor or Contractors"). E. Participating Member Agencies may elect which of the shared services, if any, they wish to receive from MWDOC by completing an initial election form with this Agreement. The initial election form is attached as Exhibit A to this Agreement. F. At the end of each year, the Participating Agency may change the shared services that it elects to receive for the following year by completing an annual election addendum to this Agreement. G. Annual election addendums may also be used to tailor the types and amounts of shared services that each participating Member Agency will receive, as well as the costs. H. The Parties desire to enter into this Agreement whereby MWDOC will provide the water loss control shared services that the Participating Agency elects to receive on the terms and conditions described in this Agreement. TERMS 1. Scope of Services. MWDOC will provide to Participating Agency the water loss control services that are identified in the initial election form attached as Exhibit A and, unless otherwise provided in Exhibit A, that are consistent with the description in the Water Loss Control Shared Services Business Plan attached as Exhibit B ("Services"). The actual scheduling of Services shall be done only upon request of the Participating Agency. The Parties agree that MWDOC may provide the Services by utilizing MWDOC staff or Contractors as determined by MWDOC. 2. Term of Agreement. The term of this Agreement shall be from July 1, 2019 to June 30, 2024. The term will automatically renew for another five years unless either of the Parties terminate the Agreement pursuant to Section 6. 3. Annual Election Addendums. Prior to July 1 of each year of the Agreement and consistent with the requirements of this Section, Participating Agency may change the shared services that it elects to receive for the following fiscal year (July 1 — June 30) by completing an annual election addendum, which will replace and become a new Exhibit A to this Agreement ("Election Addendum"). The Election Addendum with the elections for the following fiscal year must be submitted to MWDOC prior to the end of the third quarter of the previous fiscal year. The Election Addendum must be executed by the Parties prior to the start of the next fiscal year for it to take effect. The Election Addendum may contain terms that are different than those in the initial election form, including adjustments to the types of services and the addition of new shared services as they become available. 4. Pricing and Payment. Participating Agency shall pay MWDOC for the Services performed pursuant to this Agreement in the unit cost amounts for each type of elected shared service as set forth in Exhibit A. The unit cost amounts in Exhibit A may be adjusted each year by MWDOC in MWDOC's discretion. MWDOC will provide notice to Participating Agency of any changes to the unit cost amounts for the next fiscal year by March 1 of the previous fiscal year, and such adjusted costs shall be reflected in the Election Addendum. With respect to Services that are provided by Contractors who are under contract with MWDOC, MWDOC reserves the right to change the unit cost for such Services if there is a change in unit cost by the Contractor, provided, however, that MWDOC gives the Participating Agency no less than sixty (60) days notice of such change, during which period the Participating Agency may elect to terminate such Services from the Election Addendum. In addition, Participating Agency is not obligated to request any Services and is only required to pay for Services performed by MWDOC at the request of Participating Agency. 5. Billing Procedure and Payment. Within thirty (30) days of receiving the Exhibit A, MWDOC shall invoice Participating Agency for the full unit cost of the Services that have been chosen by the Participating Agency for the upcoming fiscal year. Participating Agency shall pay MWDOC within thirty (30) days of receipt of the invoice. In the event that there is a subsequent change in the scope of the Services that were elected in Exhibit A, MWDOC will provide a revised invoice for such change and in the event that the change results in a credit to the Participating Agency, then the Participating Agency will have the option to apply the credit to the annual invoice for the next fiscal year or to be issued a refund. 6. Termination. Either Party may terminate this Agreement upon thirty (30) days written notice to the other. In such an event, the Parties shall be responsible to each other for any obligations that have already been incurred prior to the termination date. 7. Qualifications. MWDOC represents and warrants to Participating Agency that MWDOC and its Contractors have the qualifications, experience, equipment, and licenses, necessary to properly perform the Services in a competent and professional manner. MWDOC will cooperate with each Participating Agency to enforce any warranty or other contractual claims arising out of the failure of a Contractor to perform Services in accordance with the terms of this Agreement. 8. Standard of Care. MWDOC's services will be performed in accordance with generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised to perform the Services. MWDOC will require that all Contractors provide the same level of professional qualification and skill. 9. Accounting. MWDOC shall, for a reasonable time, keep accurate and detailed records of the Services performed and the financial details in connection with such Services, including all accounting books and records related to any payments to Contractors (collectively, the "Records"). Any and all Records must be maintained in accordance with generally accepted accounting principles that are applicable to local government agencies in the State of California and must be sufficiently complete and detailed so as to permit an accurate evaluation of the Services provided by MWDOC under this Agreement. MWDOC shall give Participating Agency, during normal business hours, reasonable access to such Records. 10. Indemnification. MWDOC agrees to indemnify and hold harmless Participating Agency, its Board, members of the Board, employees, and authorized volunteers from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death (collectively, "Claims"), in any manner arising out of any negligent acts or willful misconduct of MWDOC, its agents and employees in connection with the provision of Services. MWDOC further agrees that it will cause all Contractors to indemnify and hold harmless Participating Agency from any and all Claims arising out of the negligent acts or willful misconduct of the Contractor, its agents and employees, and Participating Agency agrees that it will look solely to the Contractor for such Claims, provided, however, that MWDOC will act as the agent of the Participating Agency to enforce the terms of the indemnity with Contractor and make any related insurance claims with respect to the insurance coverage provided by Contractor. If MWDOC fails to obtain a contractual indemnity and insurance coverage from a Contractor, then MWDOC will be responsible to indemnify and hold harmless the Participating Agency for any Claims. Participating Agency agrees and acknowledges that MWDOC is not responsible for the maintenance and quality of any of Participating Agency's facilities, and Participating Agency is responsible for any costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, arising from such. 11. Insurance. MWDOC agrees to procure and maintain, at MWDOC's expense, insurance in amounts as described in Exhibit C. MWDOC shall require any third party Contractors to carry the same policies and limits of insurance that MWDOC is required to maintain pursuant to this Agreement, unless otherwise approved in writing by Participating Agency. 12. Independent Contractor. MWDOC shall act as an independent contractor in the performance of the Services provided for in this Agreement and shall furnish such Services in MWDOC's own manner and method, and in no respect shall MWDOC or any of its agents be considered an agent or employee of Participating Agency. No provisions of this Agreement shall be intended to create a partnership or joint venture between MWDOC or any of its agents and Participating Agency, and neither Party shall have the power to bind or obligate the other Party, except as expressly set forth in this Agreement. 13. Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose. MWDOC: Robert J. Hunter, General Manager Municipal Water District of Orange County 18700 Ward St. P.O. Box 20895 Fountain Valley, CA 92728 Participating Agency: Seal Beach City Clerk City of Seal Beach 211 8th Street Seal Beach, CA 90740 Such notice shall be deemed made when personally delivered or sent via commerical overnight courier and shall be effective upon receipt. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. 14. Jurisdiction and Venue. In all matters concerning the validity, interpretation, performance, or effect of this Agreement, the laws of the State of California shall govern and be applicable. The Parties hereby agree and consent to the exclusive jurisdiction of the courts of the State of California and that venue of any action brought hereunder shall be in Orange County, California. 15. Counterparts and Facsimile. This Agreement may be executed by the Parties in counterparts, which counterparts shall be construed together and have the same effect as if all the Parties had executed the same instrument. Counterpart signatures may be transmitted by facsimile, email, or other electronic means and have the same force and effect as if they were original signatures. All parties have participated in the drafting of this Agreement. 16. Severability. If any provision of this Agreement shall be held illegal, invalid, or unenforceable, in whole or in part, the legality, validity, and enforceability of the remaining provisions shall not be affected thereby. 17. Entire Agreement. This Agreement contains the entire agreement of the Parties relating to the subject matter hereof; and the Parties have made no agreements, representations, or warranties, either written or oral, relating to the subject matter hereof that are not set forth herein. Except as provided herein, this Agreement may not be modified or altered without prior written approval from both parties. 18. Authority to Execute. Each Party represents and warrants to the other Party that all necessary action has been taken by such Party to authorize the undersigned to execute this Agreement and to bind it to the performance of its obligations hereunder. 19. Incorporation of Recitals. The Recitals and section titles set forth herein are incorporated herein and are an operative part of this Agreement. IN WITNESS WHEREOF, the Parties have hereunto affixed their names as of the day and year thereinafter written, which shall be and is the effective date of This Agreement. MWDOC: in Robert J. Hunter, General Manager Municipal Water District of Orange County Date: Approved as to Form NO Joseph Byrne, General Counsel Date: Participating Agency: By: 5�4w— Name:n 2`1 I Title: MA .� Agency: City of Seal Beach Approved as to Forrrn By: Name: Craiq A. Steele City Attorney, City of Seal Beach Date: June 25, 2019 EXHIBIT A Municipal Water District of Orange County Water Loss Control Shared Services Initial Election Form Fiscal Year 2019-20 Year 1 Water Loss Control Shared Services Agency: City of Seal Beach Contact Person: Contact E-mail: Contact Phone: Task 1: 1 Water Audit Validation Water audit validation will be conducted at Level 1, according to the methodology established in Water Research Foundation project 4369: Level 1 Water Audit Validation Guidance Manual. Water audit validation aims to identify and appropriately correct for inaccuracies in water audit data and application of methodology. Furthermore, validation also evaluates and communicates the uncertainty inherent in water audit data. To accomplish these goals, MWDOC's validation shared service will follow the steps published in the Water Research Foundation Level 1 WaterAudit Validation Guidance Manual. The process will include: • Review the water audit and supporting documentation. • Review performance indicators for evidence of inaccuracy. • Review audit inputs and data validity grades and confirm correct application of methodology in a Level 1 validation interview. Adjust inputs and data validity grades, if necessary. • Review performance indicators again for evidence of persisting inaccuracy. • Document results. MWDOC's validation shared service will also employ the California -specific additional guidance developed by the California Water Loss Technical Assistance Program and subsequently taught in the Water Audit Validator (WAV) certificate course. Validation results will be documented in a format acceptable to the Department of Water Resources. Templates for this format have been published by the California - Nevada section of the American Water Works Association on their WAV Certification webpage. Deliverables include: • Level 1 Validation Summary Notes • Certified Validation Report (signed by validator) Water Balance Validation is a Core service provided by MWDOC to Yes its member agencies at no cost. MWDOC member agencies are No requested to check the box to the left indicating their choice to have MWDOC validate their annual water balance. $ The Cities of Anaheim, Fullerton, and Santa Ana may access MWDOC's Water Audit Validation service for a fee of $991 per validation. Task 2: 1 Meter Accuracy Testing Customer meter accuracy testing enables an agency to measure a retail meter's performance and, consequently, the throughput that the meter fails to register. By measuring a meter's inaccuracy, an agency can understand financial loss due to meter inaccuracy and can develop a plan to manage the meter performance within their system. Customer meter tests will be conducted in accordance with the methodology set forth in American Water Works Association manual M6, Water Meters — Selection, Installation, Testing, and Maintenance. The stipulations in manual M6 include: • Specific low, medium, and high flow rates for each meter type and size • Minimum test volume by flow rate and meter size • Generally acceptable accuracy limits for new and repaired meters M6 also enumerates test procedures for laboratory tests and field tests that MWDOC staff and/or contractors will be required to follow. Agencies can choose between two customer meter accuracy testing service providers: McCall's Meters, Inc. or Westerly Meter Service Company. These meter accuracy testing firms were selected through a Request for Proposals process conducted by MWDOC. This RFP process utilized a review panel, including member agency staff, who recommended that both meter accuracy service providers be available for agencies to choose from. The review panel concluded that both companies were capable of providing the desired services, had similar proposed costs and, together, could complete the work in a timelier manner. The Meter Accuracy Testing (MAT) Worksheet at the end of this document summarizes the fees for each meter accuracy testing service provider. Note that the fees are slightly different between providers. As a result, each service provider has its own MAT Worksheet. Agencies will need to: • Select the meter accuracy testing company of their choice, • Identify the number and sizes of meters to be tested (green data entry cells), and • Estimate the number of meetings (McCall's) or hours and mileage (Westerly) for meetings with the selected company. This worksheet should be used to calculate the total cost for meter accuracy testing services for your agency. The cost estimate calculated in the MAT Worksheet should be entered into the shaded cell immediately below. Water Systems Optimization, Inc. (WSO) is available to assist agencies in quantifying the number and sizes of meters to be tested as part of Task 3: Component Analysis of Apparent Losses. Small meter (5/8 — 2 inch) testing will require agencies to pull the meters from the field and deliver them to the selected meter testing company. Meter testing company locations are provided below. Large meters (3 inch and larger) will be tested in-situ. McCall's Meters, Inc. 1498 Mesa View Street Hemet, CA. 92543 (951) 654-3799 Deliverables include: • Meter accuracy testing results • Warehousing of test results data Westerly Meter Company 403 East Carlin Street Compton, CA. 90222 (310) 637-9000 $346 MWDOC Administrative Fee = $346 $ Input the total dollar amount calculated in the MAT Worksheet. $ Task 2 Total Task 3a: I Distribution System Leak Detection Leak detection will be conducted using a comprehensive acoustic survey, meaning that leak detection technicians will sound all available appurtenances regardless of spacing distances. The following protocols will be adopted for leak detection: • Sounding points: Physical contact and sonic leak sound amplification will occur for each hydrant, available valve, and customer service connection. • Sonic ground listening (hard cover): When normal contact points are not available or cannot be created within a reasonable distance, sonic ground listening devices will be used by making ground contact directly over the pipe at intervals no greater than six (6) feet when ground cover is pavement, concrete, or a similar hard surface. If excessive ambient noise precludes the effectiveness of the ground listening device in an area during daytime hours, then survey will be considered during nighttime hours. Such situations will be pre -approved with retail agency staff before any night surveying is undertaken. • Sonic ground listening (soft cover): When normal ground contact points are not available and ground cover is not a hard surface, probe rods will be used at 10 -foot intervals. A sound amplifier will be used on probe rods. Probe rods will be driven into the ground a minimum of six (6) inches directly over the pipe where ground conditions allow. • Verification: All indications of leaks found during initial survey will be verified a second time, after which the leak will be pinpointed with a computer-based leak sound correlator whenever possible. Pinpointing leak locations through interpretation of sound intensity, whether by ear, decibel metering, or comparable methods, will not be used when contact points are available for access with a computer-based leak sound correlator. MWDOC staff will perform distribution system leak detection at a cost of $278 per mile of distribution main surveyed. Deliverables include: • Distribution System Leak Detection Plan • Weekly progress reporting and leak verification $ Task 3a total = miles X $278 Task 3b: I Suspected Leak Survey MWDOC staff will perform a suspected leak survey at a cost of $347 per leak investigation. The methodology to detect suspected leaks will employ the same process described in Task 3a. Deliverables include: • Suspected leak consultation • Field leak investigation • Written report and pinpointed leak location $ Task 3b Total = number of suspected leaks X $347 Task 4: 1 Distribution System Pressure Survey The methodology used for pressure surveying depends on the survey goal of: 1) Average zonal and system pressure survey, or 2) Pressure transient survey using high frequency logger. Methodology must be agreed upon with each agency before surveying begins. The methodology to be determined includes: • Logger settings (e.g. sampling and recording frequencies) • Logger deployment locations • Logger deployment durations • Analysis of data after logger retrieval 1) Average Zonal and System Pressure Survey Pressure loggers can be deployed to evaluate the range of pressures in a system or zone, which can then be used to estimate average system or zonal pressure. The survey methodology outlined below provides a template with which to begin planning a pressure survey that evaluates pressure ranges and averages (a "standard survey"). Please note that this methodology serves as a starting point that must be customized to the specific infrastructure being studied. Logger Settings Logger settings for a standard survey must balance data collection and storage frequency with the duration of the desired logging period. Since there is a trade-off between survey length and recording interval, longer pressure surveys must be programmed with a less -frequent recording interval. Because near -instantaneous pressure fluctuations are not the primary focus of a standard survey, pressure loggers can be programmed to sample and record less frequently than in a transient survey. The Global Water PL200-H Hydrant Loggers that MWDOC owns can record more than 81,000 pressure readings. Therefore, for a survey length of one week, a maximum of 8 readings per minute can be recorded without exceeding the logger's capacity. As a conservative starting point, pressure loggers will be programmed according to the specifications below. If survey requirements dictate a different sampling and recording frequency, it can easily be accommodated by adjusting these settings. • Sampling frequency: 0.5 seconds • Recording frequency: 10.0 seconds Logger Deployment Locations In a standard survey, loggers must be deployed across the full range of elevations in the zone being studied, to the extent possible given hydrant locations and the number of loggers available for the survey. Pressure loggers should be deployed at the following sites, in this order of preference: • As close to the downstream outlets of pressure sources as possible (e.g., after a pressure -reducing valves outlet) • As close to the upstream inlets of pressure -altering infrastructure as possible (e.g., before a pump intake at the bottom of a zone) • Distributed across the zonal elevation profile, as equally spaced across the anticipated HGL as possible given possible hydrant locations Loggers must be installed on standard 2 '/2 -inch NST (NH) fire hydrant ports. If 2 '/2- inch ports are not available, adaptive connectors must be purchased. Loggers must also be locked to hydrants using the provided security equipment. Logger Deployment Durations Loggers should be deployed for at least 24 hours to capture a full diurnal pressure cycle. As a starting point for planning, logger deployment should be planned to capture a full seven days, in case weekend use patterns and alternating -day irrigation schedules affect pressure dynamics. Analysis of Pressure Data Pressure loggers record time series data. Standard time series analyses could be considered, depending on survey goals. Pressure patterns should be assessed first by logging location and then across the full logged zone. Possible treatments and analyses include: By logging location • Data cleaning to identify unusual values (e.g. outliers, negative pressures) • Minimum, maximum, and average pressures Diurnal and/or weekly pressure • Pressure regulating infrastructure functionality By zone • Pressure change propagation across a zone • Pressure patterns compared to leak records • Average zonal pressure (the average of each location average, assuming loggers are reasonably distributed across the full elevation and corresponding pressure profile) • Potential excess and/or inadequate pressure • Hydraulic model verification 2) Pressure Transient Survey A pressure transient survey identifies instantaneous, damaging swings in pressure introduced by infrastructure malfunction, sudden and significant changes in demand, or rapid hydrant operation. Pressure transients move quickly and can only be identified with a high sampling frequency. Logger Settings To identify transients, loggers must sample a data point at least every 0.25 seconds. The Global Water PL200-H Hydrant Loggers that MWDOC owns can sample every 0.1 seconds. As a starting point, pressure loggers used for transient identification will be programmed according to the specifications below. • Sampling frequency: 0.1 seconds • Recording frequency. 5.0 seconds These specifications allow for approximately 4.5 days of recording. Logger Deployment Locations At minimum, loggers should be deployed immediately upstream and downstream of pressure regulating infrastructure suspected of transient production. Loggers may also be deployed at a distance from the downstream outlet of pressure regulating infrastructure to assess the distance of transient propagation. If a leak cluster has been observed, loggers may be deployed near the leak cluster epicenter and encircling the leak cluster to study whether pressure transients are contributing to infrastructure failure. Logger Deployment Durations Loggers must be deployed for a period that captures the full range of pressure regulating infrastructure operation. For example, if a tank is filled once a week, then pressure loggers should be deployed for at least a week. For surveys lasting longer than 4.5 days, the logger recording interval will need to be longer than 5.0 seconds to ensure adequate storage throughout the recording period. Analysis of Pressure Data Pressure data loggers record time series data. Standard time series analyses could be considered, depending on survey goals. Possible treatments and analyses include all the treatments and analyses suggested previously for a standard survey. Additional transient -specific analyses are: • Transient identification using a relative or absolute amplitude threshold o Absolute: transient amplitude o Relative: ratio of transient amplitude to average location pressure • Temporal transient alignment to study the direction and speed of transient propagation MWDOC staff will perform a distribution system pressure survey at a cost of $4,141 Der 8 loaaer survev. $ Task 4 Total = number of 8 logger surveys X $4,141. Task 5: 1 Distribution System Flushing (NO -DES) Flushing with a Neutral Output Discharge Elimination System (NO -DES) unit will consist of the following steps: • Deploy: Mobilize and set-up NO -DES truck at flushing location, between two fire hydrants. • Connect: Connect a hose from the filtering system's inlet point to one hydrant; then, connect a second hose from the filtering system's outlet point to the other hydrant. • Create a loop: Open both fire hydrants, allowing the hoses and filters to be filled. This will create a temporary above -ground loop in the water distribution system. • Circulate: A large pump on the NO -DES unit circulates water through the loop at the desired flushing velocity, scouring the water main to remove debris. • Filter and purify: Contaminants and biofilms are removed by the NO -DES filters. If needed, a small amount of chlorine may be added to increase chlorine residual during the process. • Shut down: When the entire section of water main in the targeted flush zone has been filtered and all turbidity meters are below 1 NTU, shut down the system, close hydrants, and remove hoses. For more detailed information regarding NO -DES Standard Operating Procedures, follow this link: htti)s://www.mwdoc.com/wo-content/uploads/2019/04/NO-DES-SOP- 2019.gdf Agencies can choose between two Distribution System Flushing service providers: Reliable Water Solutions, LLC. or ValveTek Utility Services, Inc. These service providers were selected through a Request for Proposal Process conducted by MWDOC. This RFP process utilized a review panel, including member agency staff, who recommended that both flushing service providers be available for agencies to choose from. Both contractors are offering identical pricing for flushing services as shown in the worksheet. The Distribution System Flushing (DSF) Worksheet provided at the end of this document summarizes the fees for each flushing service provider. Agencies will need to select the flushing service provider of their choice and identify the number of days of flushing services they need (green data entry cells). This Worksheet should be used to calculate the total cost for distribution flushing services for your agency. The cost estimate calculated in DSF Worksheet should be entered into the shaded cell immediately below. Reliable Water Solutions, LLC. Ohm Kongtang, Managing Director 22421 Barton Road, No. 526 Grand Terrace, CA. 92313 (909) 645-6441 Deliverables will include: • Flush Plan and Schedule ValveTek Utility Services, Inc. Jeff Favina, President 16 Interhaven, Avenue North Plainfield, NJ. 07060 (347) 739-4674 • System Flushing • Weekly water quality and progress reporting $1,373 MWDOC Administrative Fee = $1,373 $ Flushing Services $ Total Summary of Shared Services Elections: (transfer total for each Shared Service above to this summary table) Date: By: By: Task 1: Water Audit Validation Yes No $ (3 Cities only) Task 2: Meter Accuracy Testing $ Task 3a: Distribution System Leak Detection $ Task 3b: Suspected Leak Survey Task 4: Distribution System Pressure Survey $ Task 5: Distribution System Flushing (NO -DES) $ Grand Total: $ Date: Date: By: By: General Manager Title: Municipal Water District of Orange County Agency: City of Seal Beach Meter Accuracy Testing (MAT) Worksheet McCall's Meters, Inc. McCall's Meters, Inc. Meter Accuracy Testing Fee Worksheet Participating Agency: Contact Person: Phone & E-mail: (1) McCall's Requires a minimum of 4 meter large tests per day; If less than 4 tests, a portal to portal fee of $125 will be charged. (2) McCall's will charge a flat rate of $100 per day for attending meetings. McCall's Meters, Inc. Rate Quantity Total Small Meter Testing 5/8 - 1 inch Meters 11/2 - 2 inch Non -Turbine Meters 11/2 - 2 inch Turbine Meters 3 in. Turbine Meters $ $ $ $ 35.00 50.00 55.00 70.00 $ $ $ $ _ Large Meter Testing (1) 3 inch and Larger Meters $ 250.00 $ Rates for Pick or Delivery of Meters $500 $ Rates for attending meetings (2) $ 100.00 $ Total: $ _ (1) McCall's Requires a minimum of 4 meter large tests per day; If less than 4 tests, a portal to portal fee of $125 will be charged. (2) McCall's will charge a flat rate of $100 per day for attending meetings. Meter Accuracy Testing (MAT) Worksheet Westerly Meter Service Company Westerly Meter Service Company Meter Accuracy Testing Fee Worksheet Participating Agency: Contact Person: Phone & E-mail: (1) Westerly will charge $125 per hour plus mileage. Westerly Meter Service Company Rate Quantity Total Small Meter Testing 5/8 - 1 in. 11/2 to 2 inch Non -Turbine Meters 11/2 to 2 inch Turbine Meters $ $ $ 30.00 65.00 65.00 $ $ $ Large Meter Testing 3 to 10 inch $ 175.00 $ - Rates for attending meetings (1) Mileage $ $ 125.00 0.54 $ - $ - Total: 1 $ - (1) Westerly will charge $125 per hour plus mileage. Distribution System Flushing (DSF) Worksheet Distribution System Flushing Fee Worksheet Participating Agency: Contact Person: Phone & E-mail: Selected Flushing Service Provider: Reliable Water Solutions, LLC. ValveTek Utility Services, Inc. Components of Flushing Service: Rate: Quantity: Total: Notes: Equipment Mobilization: $500 X 1 = $500 One-time fee per agency. FlushingRate da per Y $3,700 X - Based on an 8 hour work day; includes equipment and labor. Filter Bags (each): $15.00 X = Quantity is dependent on volume of materials flushed from the system. Flushing System Disinfection: $1,500 X = One-time fee to disinfect flushing system before flushing is initiated. (Optional) Total: Note: Reliable Water Solutions, LLC. and ValveTek Utility Services, Inc. are offering identical fee structures. EXHIBIT B lesoe MUNICIPAL WATER DISTRICT OF ORANGE COUNTY Water loss Control Shared Services Business Plan Staff Contact: Joseph M. Berg Director of Water Use Efficiency iberA0mwdoc.com (714) 593-5008 Contents ExecutiveSummary .......................................................................................................................................6 Background............................................................................................................................................... 6 RetailAgency Support ...............................................................................................................................6 ProposedServices and Pricing..................................................................................................................6 ProposedStaffing......................................................................................................................................8 Partnerships.............................................................................................................................................. 9 Contracting................................................................................................................................................ 9 Water Loss Control Shared Services Opportunity......................................................................................11 Shared Services Introduction..................................................................................................................11 Factors Driving MWDOC's Water Loss Control Shared Services.............................................................11 MWDOC's Current Technical Assistance Program......................................................................................11 WaterLoss Control Work Group.............................................................................................................12 One -on -One Technical Assistance..........................................................................................................12 Development of a Water Loss Control Shared Services Business Plan...................................................13 Needs Assessment (Gap Analysis)..............................................................................................................14 Annual Water Balance Validation...........................................................................................................14 CustomerMeter Accuracy Testing..........................................................................................................15 Distribution System Leak Detection........................................................................................................16 Distribution System Pressure Surveys....................................................................................................18 DistributionSystem Flushing..................................................................................................................18 Summary.................................................................................................................................................19 Solution —Shared Water Loss Control Services.......................................................................................... 21 Opportunity No. 1: Water Balance Validation........................................................................................21 Description.......................................................................................................................................... 21 Context................................................................................................................................................ 21 Methodology....................................................................................................................................... 22 EquipmentRequirements...................................................................................................................22 StaffRequirements.............................................................................................................................22 Opportunity No. 2: Meter Accuracy Testing...........................................................................................23 Description.......................................................................................................................................... 23 3 Context................................................................................................................................................ 23 Methodology....................................................................................................................................... 25 EquipmentRequirements...................................................................................................................25 StaffRequirements.............................................................................................................................26 FundingMechanism............................................................................................................................27 Opportunity No. 3: Distribution System Leak Detection........................................................................27 Description.......................................................................................................................................... 27 Context................................................................................................................................................ 27 Methodology....................................................................................................................................... 28 Equipment Requirements...................................................................................................................29 StaffRequirements.............................................................................................................................30 FundingMechanism............................................................................................................................30 Opportunity No. 4: Distribution System Pressure Surveys.....................................................................30 Description.......................................................................................................................................... 30 Context................................................................................................................................................ 31 Methodology....................................................................................................................................... 31 EquipmentRequirements...................................................................................................................32 StaffRequirements.......................................................:.....................................................................32 FundingMechanism............................................................................................................................33 Opportunity No. 5: Distribution System Flushing..................................................................................33 Description.......................................................................................................................................... 33 Context................................................................................................................................................ 33 Methodology....................................................................................................................................... 34 EquipmentRequirements...................................................................................................................34 StaffRequirements............................................................................................................................. 35 Summaryof Solutions.............................................................................................................................36 Private Sector and MWDOC Cost Comparisons..........................................................................................36 WaterBalance Validation.......................................................................................................................37 Distribution System Leak Detection........................................................................................................37 Distribution System Pressure Survey......................................................................................................38 Conclusions............................................................................................................................................. 39 Executionand Implementation...................................................................................................................39 TargetMarket......................................................................................................................................... 39 4 Core and Choice Funded Shared Services...............................................................................................40 In -House Staff and Contractor -Provided Shared Services......................................................................40 Staffing Plan and Organizational Structure.............................................................................................41 StaffingPlan........................................................................................................................................41 OrganizationalStructure.....................................................................................................................43 PhysicalLocation.....................................................................................................................................43 Equipmentand Training..........................................................................................................................43 InitialEquipment Needs......................................................................................................................43 Ongoing Equipment or Staff -Related Costs........................................................................................44 SharedServices Pricing...........................................................................................................................44 Promotion...............................................................................................................................................45 Water Loss Control Shared Services Agreement....................................................................................45 Timeline................................................................................................................................................... 46 TechnicalAdvisory Committee...................................................................................................................46 StrategicAlliances.......................................................................................................................................47 State Agencies and Policy Development.................................................................................................47 WaterSystems Optimization..................................................................................................................47 Private Sector Service Providers.............................................................................................................47 NeighboringAgencies.............................................................................................................................48 GrantFunding.........................................................................................................................................49 ExitStrategy................................................................................................................................................ 49 Appendix 1: Retail Agency Shared Services Survey....................................................................................50 Appendix 2: Shared Services Survey Responses.........................................................................................56 Appendix3: Job Descriptions......................................................................................................................73 Appendix 4: Shared Services Agreement....................................................... Error! Bookmark not defined. 5 Executive Summary Background In February 2018, the MWDOC Board authorized staff to explore offering water loss control shared services directly from MWDOC to Orange County retail agencies. MWDOC staff have developed this Water Loss Control Shared Services Business Plan for review by both the retail agencies and the Board. MWDOC's shared services would provide retail agencies flexible and cost effective access to specific water loss control technologies and expertise to improve water loss within their systems under a partnership with MWDOC, the retail agencies, and the Water Loss Control Work Group. Demand for services beyond what MWDOC is able to provide could be supplied by the private sector with MWDOC's facilitation to reduce costs through an economy of scale. MWDOC could tailor shared services to specifically meet the needs of retail agencies both large and small, with sharing of services and equipment to minimize the potential for stranded assets. Water loss control shared services are particularly timely and appropriate because: • Senate Bill 555 (2015) requires annual validated water loss reporting and the enforcement of water loss targets that will be established in 2020. • Senate Bill 606 and Assembly Bill 1668 require that agencies live within an annual water supply budget that includes distribution system water loss. • MWDOC has facilitated a Water Loss Control Work Group since 2015, and the Work Group has requested the provision of water loss control shared services. • Through grant funding, MWDOC has recently acquired leak detection and pressure surveying equipment, and having water loss control staff would improve the effectiveness of this equipment's application. • The Water Loss Control Work Group has provided valuable information for MWDOC staff to utilize in providing feedback to the State Water Resources Control Board to help guide compliance requirements. Retail Agency Support To gauge retail agency support for water loss control shared services, MWDOC staff distributed a survey asking for anticipated participation. The survey captured broad support for a variety of water loss control shared services. At least half of MWDOC's retail agencies reported that they would be "likely" or "highly likely" to access each of the proposed shared services. Proposed Services and Pricing MWDOC staff propose five shared services, initially priced as listed in the Table 1. Each of these costs is between half to two-thirds of the cost of the same service provided by the private sector. 6 Table 1: Initial shared services pricing Shared Service Provider Unit Cost Water audit validation MWDOC staff $840 per validation Customer meter testing Outside vendor $168 administrative fee * Distribution system leak detection MWDOC staff $207 per mile Suspected leak survey MWDOC staff $259 per suspected leak Pressure survey MWDOC staff $3,360 per survey NO -DES flushing Outside vendor $840 administrative fee * * Unit costs for meter testing and system flushing only include administrative costs for MWDOC staff to facilitate contractor -provided shared services. MWDOC staff also propose that shared services be implemented in two phases to ensure that the volume of services and investment are proportional to retail agency demand. The implementation plan is mapped out in Table 2. Depending on demand for the service, MWDOC staff may evaluate the potential for customer meter testing and NO -DES distribution system flushing to be brought in-house. Should staff determine that bringing these services in-house is feasible, a full analysis will be completed and presented to the Board for consideration. Table 2: Five-year shared services implementation plan Shared Service Year I Year 11 Year III Year IV Year V FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 Water Audit MWDOC Staff MWDOC Staff MWDOC Staff MWDOC Staff MWDOC Staff Validation Customer Meter Accuracy Testing Distribution System Leak Detection Distribution System Pressure Surveying Distribution System Flushing Outside Outside Vendor Vendor Outside Outside Vendor - Vendor Consider MWDOC Staff MWDOC Staff MWDOC Staff MWDOC Staff MWDOC Staff MWDOC Staff MWDOC Staff MWDOC Staff MWDOC Staff RFP Process to Outside Outside Outside Vendor - Select Vendor Vendor Vendor Consider MWDOC Staff 7 Outside Vendor or MWDOC Staff MWDOC Staff MWDOC Staff Outside Vendor or MWDOC Staff Proposed Staffing To provide these five shared services to meet demand reported by retail agencies in the shared services survey, MWDOC staff propose to hire two additional staff members as defined in Table 3. Staff responsibilities and estimated time allocations are highlighted in the table on the following page. When policy support and overhead are considered, 1.81 to 2.26 full-time equivalent (FTE) employees are supported. Table 3: Proposed water loss control shared services staffing Position and Responsibilities Funding Mechanism Staffing Need (Low) Staffing Need (High) Water Loss Control Programs Supervisor 1.03 1.19 Level 1 water audit validation Core 0.10 0.14 Customer meter accuracy testing Choice 0.09 0.09 Distribution system pressure surveys Choice 0.32 0.44 Distribution system flushing Choice 0.22 0.22 Water loss policy development Core 0.20 0.20 Overhead (holiday, sick & vacation time) Core 0.10 0.10 Leak Detection Technician * 0.78 1.07 Distribution system leak detection Choice 0.68 0.97 Overhead (holiday, sick & vacation) Core 0.10 0.10 Total 1.81 2.26 * excludes suspected leak investigations. The proposed Water Loss Control Program Supervisor and Leak Detection Technician would report to the Director of Water Use Efficiency, as shown in Figure 1. 8 Water Use Efficiency Intern Figure 1: Water loss control shared services organizational structure Partnerships To support MWDOC's water loss control shared services program, partnerships with subject matter experts, state agencies, and potential funders would be developed, including: • California Department of Water Resources • California State Water Resources Control Board • United States Bureau of Reclamation • Water Systems Optimization, Inc. • Private sector service providers • Neighboring agencies Contracting Agencies choosing to access MWDOC's water loss control shared services will be required to sign a master shared services agreement and annual shared services election exhibits. This agreement will initially have a ten-year term. Annual exhibits to the shared services agreement will be used to define what shared services will be accessed each year for each agency. Exhibits will allow for annual adjustments to the types of services to be accessed, fees to be charged for services, and the addition of new shared services as they become available. This same agreement and exhibit structure have been used effectively for the last three years for MWDOC's water loss control technical assistance program. Agencies will be asked to make their annual shared services elections in the third quarter of each fiscal year. This will allow agencies time to budget for the services within their normal budget cycle and will Z allow MWDOC staff time to schedule and manage workloads in the coming year. Agencies may need to supplement their election of services partway through the year, which can be accommodated by submitting an additional exhibit defining the additional services. Supplemental exhibits will be accepted as staffing and contract services availability permit. 10 Water Loss Control Shared Services Opportunity Shared Services Introduction A shared service is the provision of a service by one part of an organization or group, where that service has previously been provided, by more than one part of the organization or group. The funding and resourcing of the service are shared, and the original supplying department effectively becomes an internal service provider. The key here is the idea of 'sharing' within an organization or group. Shared services are more than just centralization or consolidation of similar activities in one location. Shared services can mean running these service activities like a business and delivering services to internal or external customers at a cost, quality, and timeliness that is competitive with alternatives. The Water Loss Control Shared Services being considered by the Municipal Water District of Orange County would be a joint initiative model for shared services between MWDOC and our agencies to set up and operate shared services. The focus of this Water Loss Control Shared Services Business Plan is for MWDOC to provide shared services to retail water agencies throughout Orange County. Retail agencies would have easy and timely access to shared services to improve water loss within their systems under a shared services partnership with MWDOC. Shared services would be scaled to the needs of both large and small agencies. The sharing of services and equipment will minimize the potential for stranded assets. Demand for services beyond what MWDOC could provide would be facilitated by MWDOC from the private sector. Factors Driving MWDOC's Water Loss Control Shared Services Water loss requirements for urban water suppliers began in 2014 when the Governor signed Senate Bill 1420. The bill required urban water suppliers to quantify and report on distribution system water loss in urban water management plans, beginning in 2015. Distribution system water loss must be quantified for the most recent 12 -month period available, and the water loss report must be based on the water balance methodology endorsed by the American Water Works Association. In 2015, the Governor signed Senate Bill 555, increasing the requirements for annual water loss reporting and establishing a standard for water loss. This bill requires each urban retail water supplier, beginning October 1, 2017, to submit a completed and validated water loss audit report annually to the California Department of Water Resources (DWR). The bill also requires DWR to post all validated water loss audit reports on its website in a manner that allows for public access to water loss audits and performance comparison across water suppliers. The bill further requires the State Water Resources Control Board to adopt rules no later than July 1, 2020 that require urban retail water suppliers to meet performance standards for the volume of water losses. MWDOC's Current Technical Assistance Program In October 2015, the MWDOC Board authorized staff to begin a water loss control technical assistance program. The program included two components: a standing water loss control work group and one-on- one technical assistance provided by a consultant, Water Systems Optimization, Inc. (WSO). This effort 11 grew out of the legislative requirements of Senate Bill 1420 (2014) and Senate Bill 555 (2015) described above. Water Loss Control Work Group The Water Loss Control Work Group (Work Group) component of the MWDOC water loss control technical assistance program includes all retail water agencies in the county and meets every other month. The Work Group provides a forum for knowledge and capacity building among water agency staff on water loss control for retail water agency distribution systems. The every -other -month Work Group meeting agendas typically include: • Regulatory updates • Member agency information sharing o Meter accuracy testing and results o Advanced metering infrastructure o Leak detection o Revenue loss and theft recovery • Guest speakers, including SWRCB staff • Seminar topics • Technical assistance updates • Networking Work Group meetings are well attended by all retail agencies in the county. The average participation at each meeting over the last year was 25 to 30 staff members representing 18 to 25 agencies, and a representative from all agencies has attended at least one meeting during the duration of the program to date. One -on -One Technical Assistance Over the last three years, MWDOC established a comprehensive water loss control technical assistance program for water agencies throughout Orange County. The one-on-one technical assistance links retail water agency staff to a consultant, Water Systems Optimization, Inc. (WSO), specializing in water loss control. The technical assistance includes water balance compilation, component analysis of water loss volumes, distribution system leak detection, and reporting that contains recommendations for further actions to improve an agency's understanding of water loss control opportunities within their system. This program has evolved over time with the addition of sales and production meter accuracy testing in 2016, water audit validation in 2017, and the establishment of a distribution system leak detection equipment lending library in 2018. With the exception of the equipment lending library, these services are accessed by retail agencies through the "choice" program framework; on an approximately annual basis, agencies choose the services they desire and then pay for access to those services. Since these efforts started in 2015, the level of interest from water agencies throughout Orange County for these and other water loss control services has grown. Because of its success, the MWDOC water loss control program model is being replicated by the Bay Area Water Supply & Conservation Agency on behalf of their 24 member agencies. 12 Development of a Water Loss Control Shared Services Business Plan In February 2018 the MWDOC Board authorized staff to explore offering water loss control shared services directly from MWDOC to retail agencies. MWDOC staff have developed this Water Loss Control Shared Services Business Plan for review by both the Orange County retail agencies and the Board. Before any shared services are provided (beyond MWDOC's current offering), the Business Plan must be approved by the MWDOC Board. Staff are planning to present the draft Business Plan to the Board in late 2018 and will continue to engage with agencies along the way to ensure that shared services planning attends to actual agency needs. In support of this goal, MWDOC staff developed a survey to gauge retail agency interest in shared services and expectations of funding structures. The survey results are the basis of the services and staffing plan presented in this business plan. The water loss control shared services to be explored in this survey and possibly in the business plan include the following: • Annual level 1 water audit validation • Sales water meter accuracy testing (large and small sales meters) • Distribution system leak detection • Distribution system pressure surveys • Distribution system flushing The following are basic tenets of MWDOC's water loss control shared services: • Offer shared services at a competitive or lower cost than the same services provided by the private sector • Provide quality shared services on par with or better than the same services provided by the private sector • Realize economies of scale for these services by providing services at a regional level that cannot be justified at many local levels • Continue collaboration and shared learning among all agencies throughout this process • Phase implementation of new shared services over time, starting with the services that have the highest level of interest or demand by water agencies • Integrate program administration and data management to share results and customize program offerings to the unique conditions of each member agency The shared services will be offered using MWDOC's established "core" and "choice" funding framework, with "core" activities funded through the MWDOC general fund and available to all agencies and "choice" activities funded by retail agencies at the level of service of their choosing. These services will be accessed through an extended -term shared services agreement. The agreement would outline the basic roles and responsibilities of MWDOC and the retail agencies. Annually, each agency would complete a shared services participation exhibit. The exhibit would identify which shared services an agency would like to access and at what level of service (e.g., the number of meters to be tested or miles of main to be surveyed for leaks). Agencies will have the choice to opt in or out of shared services annually. 13 Needs Assessment (Gap Analysis) To better understand retail agency needs for water loss control shared services, staff surveyed agencies to see what shared services they would consider accessing if offered by MWDOC.' The survey asked agencies if they were highly likely, likely, or unlikely to access potential shared services, including: • Annual level 1 water audit validation • Sales water meter accuracy testing (large and small sales meters) • Distribution system leak detection • Distribution system pressure surveys • Distribution system flushing The survey also asked agencies if each of these services should be funded as a core or choice -based activity and gave agencies an opportunity to pose questions and express any specific support for or concern about these services. The survey was released to retail agencies on May 24, 2018 and was scheduled to close on June 7, 2018. Due to conference and vacation schedules, the survey was held open for two additional weeks to allow for broader agency participation. The final tally of survey participants totaled 28, including MWDOC member agencies and the cities of Anaheim, Fullerton and Santa Ana. The results of the survey are provided below. Note that the survey results below regarding how shared services should be funded exclude the cities of Anaheim, Fullerton and Santa Ana, as they are not subject to MWDOC's core/choice framework and would be charged directly for access to all shared services. The water loss control shared services business plan member agency survey is provided as Appendix 1. Annual Water Balance Validation Survey Question If MWDOC provided annual Water Audit Validation Services, as required by SB 555, would your agency participate? If MWDOC provided annual water audit validation services, as required by SB 555, would your agency participate? ■ highly likely a likely 0% 20% 40% 6 M 80% 100% unlikely Figure 2: Survey response to water audit validation shared service 1 Survey responses from agencies regarding Choice or Core services and Questions or concerns regarding each shared service is provided in Appendix 2. 14 Figure 2 shows that 71% of agencies responded that they are highly likely to participate, and the remaining 29% of agencies indicated that they are likely to participate, indicating broad support for water audit validation as a shared service. No agencies indicated that they are unlikely to access this shared service. Furthermore, survey results in Figure 3 show 36% of agencies indicating water audit validation should be core -funded and 64% of agencies indicating it should be choice -funded. Should water audit validation be core- or choice -funded? 36% 64% ■ core ■ choice 0% 20% 40°i% 60°% 80% 100% Figure 3: Survey response to funding water audit validation Because Senate Bill 555 requires all agencies to submit a level 1 validated water audit to the California Department of Water Recourses annually, MWDOC staff recommend that water balance validation be offered as a core MWDOC shared service utilizing in-house staff. Annually, staff will evaluate this core or choice service. When appropriate, it will be shifted to a Choice service. If an agency requests a level 2 or level 3 validation that requires more staff time than a level 1 validation, MWDOC staff recommend that additional time be a choice activity funded by the agency. Customer Meter Accuracy Testing Survey Question If MWDOC provided customer meter testing services for the following purpose, would your agency participate? • Independent verification in response to a customer claim of inaccuracy • Testing for new meters • Statistically -based testing across all meter sizes The survey results suggested broad support for MWDOC to provide customer water meter testing for the trio of purposes, with statistically -based testing across all meter sizes garnering the most support (see below). 15 If MWDOC provided customer meter testing services for the following purpose, would your agency participate? independent verification in response to a - customer claim of inaccuracy 46% testing for new meters 57% statistically -based testing across all meter sizes 29% 0% 20% 40% 60% 80% 100% ■ highly likely a likely unlikely Figure 4: Survey response to meter accuracy testing shared service In terms of funding, survey results showed 7% of agencies indicating it should be core -funded and 93% of agencies indicating it should be choice -funded. Should customer meter accuracy testing be core- or choice - funded? 7% core ■ choice 0% 20% 40% 60% 80410 100% Figure 5: Survey response to funding meter accuracy testing The survey then queried agencies about how many meters they would have tested per year on average if MWDOC provided meter accuracy testing. A total of 18 agencies provided an annual count of meters to be tested that collectively ranged from 3,100 meters per year to 4,300 meters per year. There is support for meter accuracy testing among many of MWDOC's retail agencies. Because of the high capital cost of purchasing and warehousing small meter test equipment, MWDOC staff recommend customer meter testing services be provided as an out -sourced, contracted shared service as is currently being done with McCall's Meters and Westerly Meter Service Company. MWDOC staff also recommend that meter accuracy testing be funded as a choice activity by agencies choosing to have meters tested. Distribution System Leak Detection Survey Question If MWDOC provided distribution system leak detection services for the following purpose, would your agency participate? • Partial -system or full -system leak detection services for distribution infrastructure (proactive) 16 • Distribution system leak detection to check for a suspected leak (reactive) If MWDOC provided distribution system leak detection services for the following purpose, would your agency participate? proactive leak detection 46% reactive leak detection 43% 0% 20% 40% 60% 80% 100% ■ highly likely 3= likely unlikely Figure 6: Survey response to leak detection shared service The survey captured broad support for MWDOC to provide distribution system leak detection shared services, with 21% of the agencies indicating they are highly likely to participate, 32% of the agencies indicating that they are likely to participate and the remaining 46% of agencies indicating they are unlikely to participate. Agencies indicated slightly higher interest for leak detection for suspected leaks in their distribution systems than for partial -system or full -system proactive leak detection. Most agencies (89%) prefer that distribution system leak detection be choice -funded. Should distribution system leak detection be core- or choice - funded? 11% core choice 090 20% 40% 60°/a 80% 100% Figure 7: Survey response to funding meter accuracy testing The survey also asked agencies for the miles of distribution system main they anticipate surveying if MWDOC were to provide the service. Total annual leak detection anticipated by the 15 responding agencies ranged from 510 to 560 miles per year. There is support for distribution system leak detection among many water agencies. Because of the high mileage of distribution main to be surveyed and the fact that the required equipment has already been purchased, MWDOC staff recommend that leak detection be provided as an in-house shared service. MWDOC staff also recommend that distribution system leak detection be funded as a choice activity by agencies choosing to have their systems surveyed. 17 Distribution System Pressure Surveys Survey Question If MWDOC provided distribution system pressure surveys (either system -wide or for a pressure zone), would your agency participate? If MWDOC provided distribution sytem pressure surveys (either system -wide or for a pressure zone), would your agency participate? ■ highly likely 43% 53% 9 likely 00/0 20% 40% 60% 80% 100% unlikely Figure 8: Survey response to distribution system pressure survey shared service There is support for MWDOC to provide distribution system pressure survey shared services with 4% of the agencies indicating that they are highly likely to participate, 43% of the agencies indicating that they are likely to participate, and the remaining 53% of agencies indicating they are unlikely to participate. In terms of funding, results showed 7% of agencies indicating pressure surveying should be core -funded and 93% of agencies indicating pressure surveying should be choice -funded. Should distribution system pressure surveying be core- or choice funded? 7% core choice 0% 20% 40% 60"/a 80% 100% Figure 9: Survey response to funding distribution system pressure survey There is support for distribution system pressure surveys among many water agencies. Because of the limited number of surveys and the fact that the required equipment has already been purchased, MWDOC staff recommend that pressure surveys be provided as an in-house shared service. MWDOC staff also recommend that distribution system pressure surveys be funded as a choice activity by agencies choosing to have their systems surveyed. Distribution System Flushing Survey Question If MWDOC provided distribution system flushing shared services, would your agency participate? 18 If MWDOC provided distribution sytem flushing shared services, would your agency participate? ■ highly likely 47% tF likely unlikely 0% 20°% 40% 60% 80% 100% Figure 10: Survey response to distribution system pressure survey shared service I he survey reported support for MWDOC to provide distribution system flushing shared services, with 14% of the agencies indicating that they are highly likely to participate, 39% of the agencies indicating that they are likely to participate, and the remaining 47% of agencies indicating they are unlikely to participate. Should distribution system flushing be core- or choice -funded? 796 core choice 0% 20% 40% 60% 80% 100% Figure 11: Survey response to funding distribution system flushing In terms of funding, survey results showed 7% of agencies indicated it should be core -funded and 93% of agencies indicated it should be choice -funded. The survey then queried agencies about how many miles of distribution main they would flush per year on average if MWDOC provided distribution system flushing services. A total of 13 agencies indicated they would likely use shared services for flushing a total of 1,900 miles per year. There is support for distribution system flushing among many water agencies. Because of the high capital cost of purchasing and warehousing flushing equipment, MWDOC staff recommend that this service be provide as a contract shared service using a third party. MWDOC staff also recommend that system flushing be funded as a choice activity by agencies choosing to access this service. Summary In summary, the survey captured broad support for a variety of water loss control -related shared services. Most services would be funded through choice elections by participating agencies. It is important to note that participation by all agencies is not necessary to justify offering a particular shared service. Furthermore, MWDOC's retail agencies would have the opportunity to cost-effectively reduce water loss through the shared services program. To date, most MWDOC retail agencies have compiled three 19 consecutive water audits to estimate and value distribution system water loss. Three years of water audit results are displayed in Tables 4 and 5 below. Though some agencies' audits present unrealistic results and not all water loss is recoverable, as a group, the audits capture significant volumes of water loss that could be recovered through proactive intervention. At approximately $1,200 per acre-foot, the current cost of imported water is sufficiently high to justify investments to evaluate and possibly implement systematic and economically viable water loss control programs, beginning with shared services. Table 4: Three years of apparent loss estimation* Year 1 Apparent Loss Year 2 Apparent Loss Year 3 Apparent Loss (AF) (AF) (AF) Total 7,314 7,416 8,056 * Apparent loss are the nonphysical losses that occur when water is successfully delivered to the customer but, for various reasons, is not measured or recorded accurately. Types of apparent loss are meter inaccuracy and billing errors. Table 5: Three years of real loss estimation * Year 1 Real Loss Year 2 Real Loss Year 3 Real Loss (AF) (AF) (AF) Total 20,814 20,362 14,790 * Real losses are the physical losses from the distribution system, most often leakage and tank overflows. 20 Solution —Shared Water Loss Control Services The following provides a description of the methodology to be used to provide each shared service, as well as the equipment and staff necessary for successful shared service execution. Opportunity No. 1: Water Balance Validation Description Level 1 water audit validation is the third -party review of a water audit through an interview and supporting documentation review. Level 1 validation aims to: • Confirm the correct application of general American Water Works Association water audit methodology to a utility's unique distribution system • Identify errors in water audit compilation and data validity grade selection and correct errors when possible Additional information on the process and outcomes of level 1 water audit validation can be found in Water Research Foundation project 4639A, Level 1 Water Audit Validation Guidance Manual (2017). Context Potential Annual water audit compilation and validation is a best practice for all water utilities. As a result, there is the potential for all MWDOC member agencies and the three cities to annually validate their individual water audits through shared services. Regulatory Requirements Level 1 water audit validation is an annual requirement for all California retail urban water suppliers.2 Senate Bill 555, passed in October of 2015, directed the Department of Water Resources to collect level 1 validated water audits annually and publish a database of level 1 validated water audits online. Level 1 validated water audits are due by October 1 each year, and validation must be performed by a professional who was uninvolved in the compilation of the water audit and holds a level 1 water audit validation certificate issued by the California -Nevada section of the American Water Works Association. Value Beyond Compliance Level 1 water audit validation meets the requirements of Senate Bill 555, but beyond supporting compliance, level 1 water audit validation can improve the accuracy and reliability of a water audit. By engaging with a qualified level 1 validator to confirm the data sources, analysis, and methods used to compile their water audits, MWDOC's retail agencies can more confidently use the water audits' estimates of water loss to build water loss control programs. Furthermore, the level 1 validator may objectively 2 Retail urban water suppliers are defined as systems that supply more than 3,000 acre-feet of potable water a year or serve more than 3,000 service connections. Most MWDOC member agencies qualify as retail urban water suppliers, with the current exception of Serrano Water District and Emerald Bay Community Services District. 21 suggest practices for improved data management and instrument maintenance to support MWDOC retail agencies in employing best practices. Methodology Water audit validation will be conducted at level 1, according to the methodology established in Water Research Foundation project 4369: Level 1 Water Audit Validation Guidance Manual. Water audit validation aims to identify and appropriately correct for inaccuracies in water audit data and application of methodology. Furthermore, validation also evaluates and communicates the uncertainty inherent in water audit data. To accomplish these goals, MWDOC's validation shared service will follow the steps published in the Water Research Foundation Level 1 Water Audit Validation Guidance Manual. 1. Receive and review the water audit and supporting documentation. 2. Review performance indicators for evidence of inaccuracy. 3. Review audit inputs and data validity grades and confirm correct application of methodology in a level 1 validation interview. Adjust inputs and data validity grades if necessary. 4. Review performance indicators again for evidence of persisting inaccuracy. 5. Document results. MWDOC's validation shared service will also employ the California -specific additional guidance developed by the California Water Loss Technical Assistance Program and subsequently taught in the Water Audit Validator (WAV) certificate course. Validation results will be documented in a format acceptable to the Department of Water Resources. Templates for this format have been published by the California -Nevada section of the American Water Works Association on their WAV Certification webpage. Fquipment Requirements Level 1 water audit validation does not require any specialized equipment. Staff will need: • Computers equipped with Microsoft Office Suite software • Email access • Phone access • Work stations from which to review supporting documentation and conduct level 1 water audit validation S1 3tf Reglalrerr?ents Up to 30 level 1 water audit validations will be conducted annually, in perpetuity. The time needed to accomplish a level 1 water audit validation for a utility depends on the preparation and consistency of the water audit and supporting documentation. At minimum, coordination and scheduling requires an hour, supporting document review requires two hours, the validation interview requires two hours, and validation documentation compilation after the interview requires two hours, for a total of seven hours. For agencies whose supporting documentation and water audits require significant analysis, correction, or revision, the process may take up to ten hours per agency. Therefore, to forecast staff time demands, Table 6 shows an average level 1 validation is assumed to take seven to ten hours or 196 to 290 hours for all agencies. 22 Table 4: Staff time required for annual level 1 water audit validation Annual Validations Time per Validation Total Time per Year 28 to 29 7 -10 hours 196 to 290 hours (0.10 to 0.14 FTE) The staff member(s) who performs level 1 water audit validation must hold a level 1 water audit validation certificate issued by the California -Nevada section of the American Water Works Association. To earn a certificate, the MWDOC staff member(s) must attend the California -Nevada section's two-day level 1 water audit validation class and pass the test proctored at the end of the course. Course registration is currently $2,000 per participant. The course is taught at an advanced level and assumes fluency in water audit compilation methodology as a pre -requisite. In summary, to be qualified to level 1 validate water audits, the MWDOC staff that perform level 1 water audit validation must be fluent in water audit compilation methods and pass the level 1 water audit validation certificate test proctored by the California -Nevada section of the American Water Works Association. Opportunity No. 2: Meter Accuracy Testing Description Customer meter accuracy testing enables an agency to measure a retail meter's performance and consequently the throughput that the meter fails to register. By measuring a meter's inaccuracy, an agency can understand financial loss due to meter inaccuracy and can develop a plan to manage the meter performance within their system. Small customer meters, typically defined as meters two inches and smaller, are usually sampled from a population for testing. Test results are then extrapolated using statistical methods to represent the accuracy of the entire small customer meter stock. Large customer meters are treated as individual assets. Large customer meters are typically tested on a fixed schedule that an agency determines based on the financial consequences of meter inaccuracy. in such a large customer meter testing program, the meters responsible for generating the most income will be tested most frequently. Context Potential At the most recent count, Table 7 shows MWDOC retail agencies maintain 728,074 small customer meters (5/8 inches to 2'/: inches) and 8,117 large customer meters (3 inches to 12 inches). It is recommended that most large meters that see significant volumes of throughput be tested on a regular schedule. Small customer meter testing schedules depend on an agency's meter accuracy statistics, meter age, revenue analysis and other factors described further below. 23 Table 7: 2017 orange county retail meter counts by size Agenry 5/8" 3/4" S/8' i 3/4' 1" 1-1/2' 2" 2-1/2' 3' 4" 6" 8' 30' 12" 1 Sub Total Brea 3,051 126 8,297 126 813 78 140 200 154 30 2 13,017 Buena Park 14,788 2,461 506 764 149 49 7 4 2 18,730 EI Toro WD 2,379 4,871 447 691 1,260 0 0 0 0 0 9,648 EOCWD 10 865 293 30 11 3 0 0 0 0 1,212 Fountain Valley 6,136 9,454 724 256 449 44 42 6 10 2 17,123 Garden Grove 28,635 3,250 847 656 55 115 44 0 0 0 33,602 Golden State WC 32,870 1,090 6,920 685 1,687 395 54 38 7 0 43,746 Huntington Beach 1 40,817 8,443 1,492 2,053 136 83 24 17 4 53,070 Irvine Ranch WD 74,779 11,901 14,594 5,642 8,319 333 216 42 24 8 115,858 La Habra 8,297 368 3,195 327 507 278 11 11 5 0 12,999 La Palma 4,155 24 48 31 78 10 0 1 0 0 4,347 Laguna Beach CWD 0 6,835 1,000 254 159 50 49 28 5 2 8,382 Mesa WD 17,095 2,156 2,164 930 1,163 55 35 16 8 0 23,622 Moulton Niguel WD 36,166 114 11,861 809 3,634 50 60 7 5 1 52,707 Newport Beach 16,751 4 7,251 531 1,442 42 76 32 14 1 2 26,146 Orange 0 27,529 5,922 622 1,969 61 48 16 9 2 36,178 San Clemente 0 0 16,118 354 943 32 20 12 1 17,480 San Juan Capistrano 0 6,768 3,184 568 697 7 20 9 0 0 11,253 Santa Margarita WD 0 41,047 8,098 786 2,117 42 15 2 6 0 52,113 Seal Beach 460 3,789 804 116 199 17 39 21 19 17 2 5,483 Serrano WD 1,734 329 147 6 50 0 0 1 0 0 2,267 South Coast WD 0 8,095 2,846 631 198 270 18 5 0 0 12,063 Trabuco Canyon WD 2,650 873 257 39 132 6 3 2 0 0 3,962 Tustin 0 10,111 2,979 365 594 0 51 60 0 0 14,160 Westminster 15,448 2,398 1,346 322 574 72 123 114 41 5 1 20,444 Yorba Linda WD 28 5,611 17,404 576 1,074 6 4 1 0 0 1 24,704 MWDOC Total 250,64SI 171,546 31,667 127,650 17,351 30,941 0 2,251 1,200 655 329 74 7 634,316 Anaheim 39,406 15,841 2,663 3,158 170 197 726 794 469 "124,136 Fullerton 14806 1 14998 867 1052 112 223 141 229 63 2 32514 Seita An 31606 5486 4413 1422 1771 329 156 42 45225 3 Chin Total 46,412 SA87 0 F 35,252 4,972 5,981 170 638 1,105 977 698 1812 101,875 Oren, County Total 297,57 177,033 31,667 162,902 22,323 36,922 170 2AN 2,305 1,632 1,27 255 9 736,191 Regulatory Requirements There are no regulations that currently mandate customer meter testing. However, the water loss regulations that will be developed through the Senate Bill 555 process assume that retail water agencies have insight into apparent loss performance, which typically requires customer meter testing. Value Beyond Compliance Customer meter testing equips a utility to manage its customer meter stock. By understanding the accuracy of its customer meters, a water utility will be better positioned to: • Evaluate meter replacement cycles and study the factors affecting meter accuracy for effective meter management • Maintain revenue generation efficiency, particularly for key large meters that register significant consumption • Determine whether a meter technology upgrade could result in increased revenue in order to determine appropriate investment in new metering technology • Verify the performance of newly purchased meters Customer meter test results can also inform the estimate of apparent losses in an agency's annual water audit. By understanding customer meter performance, a utility is able determine the portion of water loss attributable to apparent loss and, therefore, the portion of water loss attributable to leakage. As a result, customer meter tests enable a utility to more accurately measure and, therefore manage, both apparent loss and real loss. 24 Methodology Customer meter tests will be conducted in accordance with the methodology set forth in American Water Works Association manual M6, Water Meters — Selection, Installation, Testing, and Maintenance. The stipulations in manual M6 include: • Specific low, medium, and high flow rates for each meter type and size • Minimum test volume by flow rate and meter size • Generally acceptable accuracy limits for new and repaired meters M6 also enumerates test procedures for laboratory tests and field tests that MWDOC staff and/or contractors will be required to follow. Equipment Requirements Comprehensive customer meter testing is capital intensive. Meters two inches and smaller are often removed from service and tested on a test bench. Small meter test benches are typically stationary and housed in permanent facilities. In contrast, meters three inches and larger are tested in situ with mobile testing rigs. As a result, each size group (small or large) requires specific testing equipment. To confirm demand for customer meter testing services and acquire the most suitable equipment to serve retail agencies, customer meter testing will be conducted in two phases: first by local private companies and then by MWDOC staff using MWDOC-owned equipment, if determined to be reasonable after additional feasibility analysis. Phase One: Contracting with Private Companies MWDOC currently contracts with McCall's Meters (Hemet) and Westerly Meter Service (Compton) to test customer meters. Both companies were selected through a competitive bid with input by members of MWDOC's water loss control working group and approved by the MWDOC Board of Directors. Over the past three years, ten MWDOC retail agencies have tested a substantial number of customer meters. Eight retail agencies have contracted with McCall's or Westerly, while the other two agencies have tested customer meters in-house. McCall's and Westerly have met the needs of the eight retail agencies they have served, but appear to be nearing capacity. Should additional agencies choose to have meters tested, it may be necessary to contract with a third meter testing company. Phase Two: In -House Testing Should more MWDOC retail agencies wish to continue with periodic testing of customer meters, during the second phase of customer meter testing, MWDOC could invest in: • A small customer meter test bench • A portable large customer meter tester • A facility to house testing equipment, including the small customer meter test bench Staff will monitor demand for customer meter testing over the next few years. If demand for meter testing increases, staff will evaluate other options for this shared service including bringing meter testing in- house. 25 Staff Requirements Customer meter testing will be offered in two phases, as explained previously. In phase one, testing will be contracted with outside companies. In phase two, the costs and benefits of bringing customer meter testing in-house will be evaluated to determine whether doing so is attractive and feasible. Phase One: Contracting with Private Companies During the first phase, MWDOC will continue its contract with two local private meter testing companies. Retail agencies can contract a specified number of meter tests from the companies MWDOC has retained (to date, McCall's Meters and Westerly Meter Service). Each MWDOC retail agency will then individually coordinate testing, including meter delivery and the testing timeline, with the contracted testing provider. MWDOC staff will be involved in ensuring ease of contracting and tracking overall participation and results. MWDOC staff will also warehouse results to build a database and periodically analyze results to track performance and identify any observable trends. During phase one (contracted testing service), it is estimated that MWDOC staff will spend 2 hours per retail agency promoting customer meter testing and processing the funding exhibit and 8 hours facilitating meter testing, obtaining test data, building a test database, and interpreting test results. Therefore, as shown in Table 7, a total of 10 hours of MWDOC staff time per agency has been assumed for phase one or 190 hours for 19 participating agencies. Table S: Staff time required for phase 1 of customer meter testing Participating Agencies Time per Agency Total Time per Year 19 10 hours 190 hours (0.09 FTE) Phase Two: In -House Testing During the second phase, MWDOC can weigh the costs and benefits of building the capacity to test customer meters in-house. Testing customer meters in-house would allow MWDOC retail agencies to receive tailored service and collaborate with regional peers on customer meter test data analysis and application. Furthermore, as the focus on customer meter testing intensifies over the next five years, demand for customer meter testing expertise is expected to greatly outpace service availability in both Orange County and the greater Los Angeles metropolitan area. MWDOC retail agencies' compliance with regulatory requirements and ability to manage customer meters would be supported by access to high- quality, convenient customer meter testing. To address MWDOC retail agency needs for customer meter testing in phase 2, MWDOC could hire staff to conduct customer meter testing. Staff could retrieve small customer meters from retail agencies, test customer meters on a test bench, and record and transmit test results. Customer meter testing staff should be able to: • Comfortably lift at least 50 lbs • Possess a driver's license 26 • Easily record data in Microsoft Excel • Accurately attend to details like meter serial numbers and meter test bench conditions • Operate simple mechanical equipment, like a mobile large customer meter testing rig However, developing customer meter testing capacity in-house would require initial capital investment to obtain testing equipment, including a customer meter test bench and/or mobile large customer meter testing rig. MWDOC staff will monitor customer meter testing to determine whether bringing customer meter testing in-house is attractive, in which case a comprehensive analysis will be completed and presented to the Board for consideration. Funding Mechanism Customer meter accuracy testing would be funded by each agency per test. Test prices would align with meter sizes, with tests of larger meter costing more than smaller meter tests. Testing funding would therefore be choice -funded based on the number and sizes of meters an agency elects to test. The acquisition of test equipment could be funded in part or in whole through grant funds. Possible grant funding sources include: • The United States Bureau of Reclamation • The Metropolitan Water District of Southern California • The Department of Water Resources Integrated Water Management Program Opportunity No. I Distribution System Leak Detection Descri nti on To identify and repair leaks, a utility must conduct distribution system leak detection. Distribution system leak detection can be performed in response to a specific suspected leak or as a proactive measure to discover hidden leaks. A range of technologies can be harnessed for leak detection, ranging from established acoustic equipment to experimental satellite monitoring. Most utilities are familiar with acoustic leak detection in which a microphone and amplification device are touched to accessible infrastructure so that a technician can listen for leak noise. Effective leak detection depends on the skill of the leak detection technicians and the applicability of the leak detection technology to infrastructure and local conditions. Acoustic methods are generally cost- effective and successful for utilities who survey infrequently or have never performed proactive leak detection before. However, acoustic leak detection is more effective on metallic pipe than plastic pipe. Utilities with rigorous, frequent proactive leak detection programs may benefit from more advanced interventions, though cost-effectiveness varies and the rates of success of advanced technologies are not agreed upon. Context Potential According to the water audit data validated in 2017, retail water agencies in Orange County maintain more than 10,000 miles of distribution main in their systems. All main pipe is susceptible to leakage, and 27 proactive leak detection may enable distribution system managers to reduce water loss and extend asset life. Regulatory Requirements Retail urban water suppliers will be required to demonstrate water loss improvement and achieve water loss performance objectives by 2027. Senate Bill 555 water loss performance standards will contribute to the water supply budget framework designed pursuant to Executive Order B-37-16. Most MWDOC retail agencies do not currently perform proactive leak detection. Proactive leak detection will support agencies in demonstrating improvement in reducing their leakage volumes. By achieving sustainable, compliant leakage volumes, MWDOC retail agencies will meet the standards of Senate Bill 555 and more easily live within their water budgets. Value Beyond Compliance In addition to complying with water loss targets, proactive leak detection and repair can also reduce a utility's expenditures. Leak identification and repair avoids continued water lost to leakage, thereby saving on water purchase, treatment, pumping costs, embedded energy, and emissions. Additionally, proactively pursuing leakage can uncover leaks early in their development. Early leak discovery reduces the risk of catastrophic failure and corresponding repair costs that tend to increase with time. Leak detection, whether reactive or proactive, also informs asset management. By engaging with infrastructure through acoustic surveying, leak noise logger deployment, or other leak detection technologies, a utility can confirm the accuracy of recorded infrastructure information. Furthermore, a leak detection survey empowers a utility to map the distribution of leakage, study leak patterns, and more effectively prioritize pipeline replacement. Lastly, proactive leak detection demonstrates stewardship to ratepayers and stakeholders and engenders positive public perception. By showing care for supply-side infrastructure and distribution efficiency, a utility can more confidently request customer conservation during times of supply scarcity and solicit approval for capitally intensive projects. Mothod ology Leak detection will be conducted using a comprehensive acoustic survey, meaning that leak detection technicians will sound all available appurtenances regardless of spacing distances. The following protocols will be adopted for leak detection: • Sounding points: physical contact and sonic leak sound amplification will occur for each hydrant, available valve, and customer service connection. • Sonic ground listening (hard cover): when normal contact points are not available or cannot be created within a reasonable distance, sonic ground listening devices will be used by making ground contact directly over the pipe at intervals no greater than 6 feet when ground cover is pavement, concrete, or a similar hard surface. If excessive ambient noise precludes the effectiveness of the ground listening device in an area during daytime hours, then survey will be considered during nighttime hours. Such situations will be pre -approved with retail agency staff before any night surveying is undertaken. 28 • Sonic ground listening (soft cover): when normal ground contact points are not available and ground cover is not a hard surface, probe rods will be used at 10 -foot intervals. A sound amplifier will be used on probe rods. Probe rods will be driven into the ground a minimum of 6 inches directly over the pipe where ground conditions allow. • Verification: all indications of leaks found during initial survey will be verified a second time, after which the leak will be pinpointed with a computer-based leak sound correlator whenever possible. Pinpointing leak locations through interpretation of sound intensity, whether by ear, decibel metering, or comparable methods, will not be used when contact points are available for access with a computer-based leak sound correlator. • Situations requiring valve or appurtenance operation: the survey equipment that will be used typically does not require valve operation during surveying and pinpointing. However, on occasion, services or valves may require operation to eliminate service connection draw noise or to change velocity noise for the purposes of leak verification. If required, any valve or appurtenance operation will need to be performed by retail agency personnel only, not by MWDOC staff. • Procedure for valve or appurtenance operation: on a weekly basis, MWDOC staff will prepare a list of appurtenances that need to be operated by retail agency staff for leak verification or pinpointing. The following week, retail agency staff and MWDOC leak detection specialists will arrange for and operate valves or appurtenances for leak validation. • Correlator equipment: the correlator equipment will prompt the operator to input relevant data when different pipe sizes and/or materials are encountered during a survey segment. Correlators will be capable of correlating up to at least four pipe sizes and types at once in a given span. Equipment Requirements At minimum, each acoustic leak detection technician will require: • A sounding rod • Aground microphone Each crew will need: • A vehicle to access leak detection sites and routes • Safety and traffic control equipment (e.g. cones and reflective, brightly colored clothing) Additional equipment that would allow for more comprehensive and accurate leak detection includes: • Leak noise correlators • Leak noise loggers • Pipe locator MWDOC has already acquired standard leak detection equipment with financial support from the Bureau of Reclamation. The equipment MWDOC purchased is listed in Table 8. MWDOC has not yet purchased a vehicle for leak detection, traffic control equipment, or a pipe locator. 29 Table 8: MWDOC leak detection equipment Item No. Device Accessories Quantity Unit Cost Total Comments: 1 Subsurface LD -18 Digital Water Leak Detector 4 $ 5,355.00 Sensor w/ Magnet & Cable 4 $ 745.00 40 in. Extension Rod 2 $ 69.30 60 in. Extension Rod 2 $ 87.30 2 Zcorr Digital Correlating Logger w/8 Pods 3 $15,500.00 Sta3 f Requiremer)ts $ 21,420.00 15 -year Manufacturer Warranty $ 2,980.00 $ 138.60 $ 174.60 $ 46,500.00 15 -year Manufacturer Warranty A leak detection technician can typically accomplish 2.5 miles of leak detection per day in a residential setting. In high traffic settings, leak detection is often most successful when two technicians operate in parallel to support one another for safety and accessing infrastructure and confirming leak noise. Two technicians working together can conservatively accomplish 5.0 miles per day, though faster paces may be possible. As shown in Table 9, accomplishing 336 to 486 miles of leak detection survey would require 1,410 to 2,010 hours. Table 9: Staff time required for acoustic leak detection Annual Miles Miles per Day (one person) Total Time per Year 336 to 486 miles 10 miles per week 1,410 to 2,010 hours (0.68 to 0.97 FTE) Funding Mechamism Leak detection would be contracted as a choice service at a per -mile rate. Equipment has already been purchased using MWDOC and Bureau of Reclamation grant funds. Opportunity No. 4: Distribution System Pressure Surveys F)escription Pressure is necessary to provide high-quality service and react to emergencies, but over -pressurization can result in unnecessary leakage. Managing pressure for optimal service and minimal leakage requires thorough knowledge of the distribution system's pressure profile, but many utilities only have incomplete or dated pressure data. Typically, pressure data is available only at critical points like pressure -regulating infrastructure and the highest elevation in the distribution system. This form of pressure data, though useful for identifying service failures, does not provide complete insight into pressure dynamics across a system. To remedy this incomplete insight, it is recommended that utilities log pressure at fire hydrants throughout the distribution system. Dispersed pressure logging is particularly useful when high -frequency instruments are deployed, since high -frequency logging can identify pressure transients propagating through the distribution system. 30 Context Potential The number of pressure zones in Orange County has not been determined. However, many agencies serve between 3 and 10 pressure zones (if not more), each of which has unique pressure dynamics. Furthermore, all MWDOC retail agencies operate pressure -regulating infrastructure, including pumps and pressure regulating valves. Each piece of pressure -regulating infrastructure has the potential to malfunction, and not all malfunctions are easy to detect without pressure monitoring equipment. Therefore, logging system pressures to determine normal operations and deviations from normal can benefit all retail agencies. Regulatory Requirements Senate Bill 555 mandates periodic improvements to water audit data and water loss management, and Senate Bill 555 and Executive Order B-37-16 both require the achievement of specific performance. Pressure logging supports compliance with both regulations through the acquisition of more specific insight into the factors affecting water loss and water loss remediation strategies. Value Beyond Compliance Beyond enabling MWDOC retail agencies to comply with water audit and water loss regulations, pressure logging allows a utility to more accurately quantify average zonal and system pressures. When a utility refines its average pressure estimate using field data, water loss performance indicators that involve system pressure become more reliable. Additionally, adding pressure data to zonal management plans (for example, district metered area management) can highlight opportunities for pressure reduction or modulation that maintain service, but reduce leak frequencies and flow rates. Targeted pressure reduction not only saves water, but also saves energy consumption and corresponding emissions. Furthermore, by logging pressure at a high frequency (four or more pressure samples per second), a utility can identify pressure transients. Pressure transients, instantaneous and damaging swings in pressure that propagate through a pipe network, can cause infrastructure damage, but are difficult to identify in the absence of high -frequency pressure data. When a utility notices frequent infrastructure failure in a certain area or installs new pressure -regulating infrastructure, high -frequency pressure logging can highlight transients that a utility may be able to eliminate with operational changes. Methodology The methodology used for pressure surveying depends on the survey goal. Methodology must be agreed upon with each agency before surveying begins. The methodology to be determined includes: • Logger settings (e.g. sampling and recording frequencies) • Logger deployment locations • Logger deployment durations • Analysis of data after logger retrieval 31 Equipment Requirements Pressure data is typically collected with loggers attached to fire hydrants. Loggers can be categorized as standard (fewer than one pressure read every 250 milliseconds) or high -frequency (more than one pressure read every 250 milliseconds). Recording pressure in multiple locations simultaneously can allow pressure patterns and transient propagation to be observed, so a set of loggers than include high - frequency instruments provides more useful information than a single rotating logger. As a result, high - frequency loggers are more expensive. Therefore, it is recommended that MWDOC acquires: • 4 or more high -frequency pressure loggers • 4 or more standard pressure loggers • 8 or more lockboxes to prevent pressure logger theft Staff Requirements To conduct a pressure survey, six steps must be accomplished: 1. Choose survey locations based on planning and coordination with agency 2. Deploy loggers 3. Allow the logging period to pass 4. Retrieve loggers 5. Harvest data 6. Analyze data and communicate results Planning and data retrieval and analysis vary in the time required, depending on survey complexity and analytic rigor. Planning and analysis can happen concurrently with logging at the next round of sites to maintain efficiency (see Figure 12). Deploying loggers typically takes one day, assuming that logger locations are close enough that total driving time does not stretch longer than a half a day. Similarly, retrieving loggers also takes a day. Planning Deployment Logging Retrieval Analysis Planning Deployment Logging Retrieval Analysis Figure 12: Pressure survey phases of work Therefore, Table 10 shows 15 to 21 surveys will be performed. Each survey will require 44 hours for a total of 660 to 924 hours. Table 10: Staff time required for pressure logging and analysis Annual Surveys Time per Survey Total Time per Year 15 to 21 44 hours 660 to 924 hours (0.32 to 0.44 FTE) MA Funding Mechanism MWDOC has acquired pressure loggers through a Bureau of Reclamation grant and match funds from MWDOC. Additional investment in a vehicle for pressure logger deployment and retrieval will be necessary, and it's likely that the vehicle would be used for other water loss control services too (for example, large customer meter testing site visits). Pressure surveying would be funded through choice election by agencies who contract this service. The scope of each survey, including the rigor of analysis required, would dictate an appropriate survey budget. Opportunity No. 5. Distribution System Flushing Description Distribution system flushing is sometimes necessary to maintain water quality and exercise system infrastructure. Traditionally, distribution system flushing has been conducted unidirectional by opening a fire hydrant near the area of the system to be flushed and directing hydrant discharge into a storm drain. However, this method of system flushing wastes water treated to potable standards and tends to invite public criticism. To mitigate water waste and poor public perception resulting from system flushing, a utility can flush distribution pipe using a neutral output discharge elimination system (NO -DES). A NO -DES unit connects to two fire hydrants to create a loop. Water is then pumped from one fire hydrant to the other through the NO -DES unit, which filters sediment and biofilm stirred up during flushing to remove these contaminants from the water before the water is reintroduced to the distribution system. If needed, a NO -DES unit can also add disinfectant during the filtration process to further improve water quality. contoxt Potential According to the water audit data validated in 2017, retail water agencies in Orange County maintain more than 10,000 miles of distribution main in their systems. Regulatory Requirements The Safe Drinking Water Act and California Health and Safety Code require compliance with drinking water quality standards to ensure a reliable and safe drinking water supply. Often, to comply with standards set by the EPA and the state, utilities make regular, planned discharges (flushing) from their distribution system. These discharges are regulated by Section 402 of the Clean Water Act that requires that a discharge of any pollutant or combination of pollutants to surface waters be regulated by a National Pollutant Discharge Elimination System (NPDES) permit. 33 Value Beyond Compliance In addition to complying with federal and state regulations, a NO -DES unit allows a utility to more efficiently use its water. NO -DES decreases the volume of water going to waste during the flushing process, resulting in cost savings for purchasing, treating, and power to distribute or pump the water. Further, hydrant flushing to waste is not perceived favorably by customers. Using a NO -DES unit would decrease public scrutiny, especially during drought periods when the utility is asking customers to use less water. By efficiently maintaining and operating their distribution system, the utility would demonstrate stewardship of this limited resource, gaining positive public perception. Methodology Flushing with a NO -DES unit will consist of the following steps, whether conducted by a third -party contractor (phase one) or in-house staff (potential phase two): 1. Deploy: Mobilize and set-up NO -DES truck at flushing location, between two fire hydrants. 2. Connect: Connect a hose from the filtering system's inlet point to one hydrant; then, connect a second hose from the filtering system's outlet point to the other hydrant. 3. Create a loop: Open both fire hydrants, allowing the hoses and filters to be filled. This will create a temporary above -ground loop in the water distribution system. 4. Circulate: A large pump on the NO -DES unit circulates water through the loop at the desired flushing velocity, scouring the water main to remove debris. S. Filter and purify: Contaminants and biofilms are removed by the NO -DES filters. If needed, a small amount of chlorine may be added to increase chlorine residual during the process. 6. Shut down: When the entire section of water main in the targeted flush zone has been filtered and all turbidity meters are below 1 NTU, shut down the system, close hydrants, and remove hoses. To ensure that this flushing methodology is compliant and reduce the administrative burden on retail agencies, MWDOC would pursue regional flushing permits from the Santa Ana Regional Water Quality Board and the San Diego Regional Water Quality Board. A regional permit has not been pursued and secured before. However, streamlined operation of a standard flushing methodology across the county is attractive for ease of permitting for MWDOC, MWDOC's retail agencies, and the regional water quality boards. Equipment Requirements NO -DES flushing will initially be offered as a shared service contracted with a third party. Depending on interest and cost viability, MWDOC can consider a second phase in which NO -DES flushing is operated in- house. Phase 1: Contracting with Private Companies For the first phase of NO -DES flushing, MWDOC will contract with a third party. A competitive bid process will allow MWDOC to select the service provider that best meets retail agency needs. 34 Phase 2: Offering NO -DES Flushing In -House Staff will monitor demand for NO -DES flushing over the next few years. If demand for NO -DES flushing increases, staff will evaluate other options for this shared service, including bringing the flushing in-house. If MWDOC determines that offering NO -DES flushing using MWDOC staff and equipment is cost -justified, MWDOC will have to purchase a NO -DES unit. A NO -DES unit (truck or trailer) is required to flush mains between 2" and 12". For mains larger than 12", two NO -DES units may be used in parallel. The NO -DES has two separate filter housings that must be replaced regularly. The first filter has an approximate life of 1 to 3 weeks, while the second filter has an approximate life of 3 to 6 weeks, depending on the condition of the distribution system. Y.aif Req;Wremenis Phase One: Contracting with Private Companies In phase one, MWDOC will contract with a third party to accomplish system flushing. MWDOC staff time will be spent in developing and running the bid process, ensuring ease of contracting, and tracking program results. To accomplish these administrative tasks, Table 11 shows a total of 450 hours would be required for 15 agencies at 30 hours per agency. Table 11: Staff time required for phase 1 of distribution system flushing Agencies Participating Time per Agency Total Time per Year 15 30 hours 450 hours (0.22 FTE) Phase Two: Offering NO -DES Flushing In -House Should staff determine that bringing NO -DES Flushing in-house is feasible, a complete analysis will be completed and presented to the Board for consideration. A NO -DES unit requires at least two technicians to operate, but three technicians are typically recommended. A two -person crew would consist of a lead worker and a maintenance worker with the following responsibilities: Lead Worker: • Is responsible for overall NO -DES operation • Plans flushing routes and maps • Calculates flow rates, pressures, and chlorine dosing • Logs data • Retrieves water quality samples Maintenance Worker A: • Operates hose burro • Operates hydrants and valves 35 Maintenance Work B (optional): • Sets up hose ramps to allow traffic to pass over hose, if necessary • Controls traffic Two trained technicians working together can conservatively accomplish approximately 0.75 miles per day, though faster paces may be possible. At each location, it takes approximately 1 hour to deploy the truck and 1 hour to break down the truck, with flush times ranging from 10 minutes to 2 hours. The economics of operating NO -DES flushing in-house, including staffing, will be evaluated at a later date if MWDOC staff and board choose to do so. Summary of Solutions In summary, it is proposed that MWDOC will offer five shared services to its retail agencies: • Level 1 water audit validation (MWDOC staff) • Customer meter testing (third -party contractor for initial phase) • Distribution system leak detection (MWDOC staff) • Distribution system pressure surveying (MWDOC staff) • NO -DES flushing (third -party contractor for initial phase) These services will enable MWDOC retail agencies to comply with new water loss regulations and employ best management practices in ensuring infrastructure longevity and system efficiency. Private Sector and MWDOC Cost Comparisons To evaluate the efficiency of shared services provision, MWDOC staff have surveyed the price points of private -sector service providers for each of the shared services that MWDOC staff recommend be operated in-house by MWDOC staff. These include Level I Water Balance Validation, Distribution System Leak Detection, and Distribution System Pressure Surveys. These services require minimal capital expenditures, of which some have already been purchased including the leak detection equipment and distribution system pressure loggers. MWDOC staff recommends that customer meter accuracy testing and distribution system flushing be contracted externally with the private sector because of the significant expenses to purchase, warehouse, operate, and maintain required equipment. To get started at a minimal level, meter accuracy testing and distribution system flushing equipment combined could cost more than $1.5 million. As such, no cost comparisons between MWDOC and private sector providers for these two services are necessary at this time. However, MWDOC staff will monitor retail agency subscription to these services. When feasible and valuable, MWDOC staff will return to the Board to discuss the costs and benefits of bringing these services in-house. MWDOC's costs are based on limited administrative time to coordinate and plan shared services and the estimated amount of time necessary to perform the shared service. An overhead factor of 1.693 is multiplied by the hourly rate of staff members performing the work. This factor includes expenses such as employee benefits, insurance, office maintenance, office supplies, telecommunications, computers and computer maintenance, software and software support, staff training, conference expenses, travel, and accommodations. 36 Wager Balance Validation MWDOC obtained cost estimates, as shown in Table 12, from five companies to provide the level 1 validation services required by Senate Bill 555. Employees of these companies have been certified by the California -Nevada section of the American Water Works Association to conduct level 1 water audit validations that meet the requirements of Senate Bill 555. The cost range across private sector providers was $2,000 to $3,000 per level 1 validation, summarized in the table below. MWDOC's cost estimate assumes this service would be performed by the Water Loss Control Programs Supervisor and the complete validation would require a total of 10 hours to complete. The time to complete level 1 validation includes administration, data review, two-hour agency consultation, and reporting. Based on this, MWDOC's cost estimate is $840 per validation. Table 12: Level 1 water audit validation pricing Company Cost of Service M W DOC $840 Water Systems Optimization, Inc. $2,000 to $2,500 Woodard & Curran $3,000 M.E. Simpson Company, Inc. $2,200 to $2,500 CiviITEC Engineering $3,000 Distribution System Leak Detection Two levels of distribution system leak detection are under consideration: a systematic survey of large portions of the distribution system (up to the entire system) and/or a localized survey for a suspected leak. Leak detection shared services would be structured to allow agencies to access either approach. Cost estimates for distribution system leak surveying were obtained from three companies. To allow for cost comparisons, prices were normalized to a survey mile, with technical approach and leak detection methodology specified. The technical approach involves acoustic listening using ground microphones and sounding rods, while the methodology is to "sound" the distribution system at all possible locations including services, meters, valves, and hydrants. Some companies provided pricing based on pipe material (metallic vs. PVC), while others provided pricing for a standard range of pipe materials. These costs also include documentation, leak validation, and reporting. Costs ranged from $275 to $400 per mile. MWDOC's cost estimate is $207 per mile. A summary of these price points is provided in Table 13. 37 Table 13: Leak detection pricing Company Cost of Service Notes MWDOC $207 Per mile Irvine Ranch Water District $170 Per mile $400 Per mile for miles 1-50 Water Systems Optimization, Inc. $350 Per mile for miles 51-100 $300 Per mile for miles 101+ $280 Per mile for 75% PVC and 25% metallic + $149/day mobilization Utility Services Associates $203 Per mile for metallic pipe + $149/day for mobilization $305 Per mile for PVC pipe + $149/day for mobilization MatchPoint Water Asset $275 Per mile for 75% PVC and 25% metallic Management, Inc. $1500 Per day (two -person crew, 2 to 5 miles per day) One company, Utility Services Associates (USA), also provided a cost estimate for a suspected leak investigation. A suspected leak investigation is a localized survey for a suspected leak. This investigation will utilize the same technical approach and methodology used in the system survey. Table 14 summarizes the USA and MWDOC cost estimate for a suspected leak investigation. Table 14: Suspected leak investigation pricing Company Cost of Service Notes MWDOC $259 Per investigation plus mileage Utility Services Associates $500 Per investigation plus mileage Distribution System Pressure Survey Cost estimates for a distribution system pressure survey were obtained from one company. The pressure survey includes planning the survey with the retail agency, deploying and retrieving data loggers, and analyzing and reporting results. Table 15 summarizes the private sector and MWDOC cost estimate for a system pressure survey. Table 15: Pressure survey pricing Company Cost of Service Notes MWDOC $3,360 For an 8 -logger survey Water Systems Optimization, Inc. $6,600 For an 8 -logger survey 38 Conclusions Based on this analysis, MWDOC can provide all three shared services at a lower cost than the private sector and ease the administrative burden for our agencies in securing these services. MWDOC can provide water balance validation and pressure survey shared services at about half the cost of the private sector and leak detection shared services at about two-thirds the cost of the private sector. Should retail agencies request more services than can be provided by MWDOC staff, private sector consultants and contractors will be made available to the agencies when necessary. These consultants and contractors will act as an overflow work force to meet the demands in a timely manner. Execution and Implementation Target Market As shown in Figure 13, the target market for water loss control shared services includes all 32 retail water agencies within Orange County, including all MWDOC member agencies and the cities of Anaheim, Fullerton, and Santa Ana. MWDOC has a well-established working relationship with all 32 retail water agencies. Figure 13: Shared services target market IWI] Core and Choice Funded Shared Services MWDOC staff are proposing to implement shared services using a combination of core and choice funding as summarized in Table 6. Core shared services would be provided to all retail agencies and would be funded by MWDOC through the general fund. Choice shared services would be funded by participating retail agencies who choose to access the shared service. Because Senate Bill 555 requires all urban water suppliers to submit validated water audits annually to the California Department of Water Resources by October 1, staff is proposing that water audit validation be a core shared service. However, it should be noted that the time available to complete 30 validations the first year will be compressed to three months from July 1, 2019, when shared services are initiated, to October 1, 2019, when validations are submitted to DWR. As a result, contractor assistance may be needed the first year for validations to be completed on time. It is anticipated that staff at some agencies will pursue Water Audit Validator (WAV) certification through the American Water Works Association, which will enable them to validate the water balance for their agency. However, water audit validation must be performed by a certified validator who is not involved in compiling the water balance. Currently, few agencies have the staff necessary to both compile and validate a water audit. Should enough agencies establish sufficient resources to both complete a water audit and then independently validate it, staff will reevaluate providing validation as a core service. The remaining shared services are not mandated and would therefore be choice funded by agencies choosing to access the shared service. This ensures that agencies only pay for the shared services they choose to access. Table 16: Shared service implementation funding and contracting structure Shared Service Funding Mechanism Water audit validation Core Customer meter testing Choice Leak detection Choice Pressure surveying Choice NO -DES flushing Choice In -House Staff and Contractor- Provided Shared Services Staff propose to use a combination of in-house staff and outside contractors to provide shared services as shown in Table 17. Water audit validation, leak detection and system pressure surveying will be implemented utilizing in-house staff. These shared services do not require significant capital investments for equipment and require minimal office space for staff and equipment storage. Leak detection and pressure surveying equipment has already been purchased using MWDOC and USBR grant funds. This equipment is stored in MWDOC's on-site storage vault and is secured nightly. 40 Customer Meter Accuracy Testing and Distribution System Flushing services require significant capital investment in equipment and warehousing. As a result, these shared services will be implemented with outside contractors. McCall's Meters, Inc. and Westerly Meter Service Company have been providing customer meter accuracy testing for the past three years. This arrangement will be continued for another two years before another competitive selection process is completed to maintain adherence to MWDOC's Administrative Code. In order to provide distribution system flushing services, staff will conduct a Request for Proposals (RFP) process to select a contractor(s). The RFP will clearly define the scope of work desired by retail agencies planning to access this shared service and specify best practices that the contractor(s) must employ. It is anticipated the RFP process, including Board authorization, will be initiated at the beginning of the 2019-20 fiscal year and conclude by fall 2019. During the first 12 to 24 months of shared service implementation, staff will evaluate the feasibility of transitioning contractor -provided services for meter testing and system flushing to in-house provided services. The biggest challenge to overcome in making this transition is the significant capital investment for equipment, alongside with warehouse and utility yard -style facilities to house equipment. Phased implementation will allow for an evolving understanding of retail agency demand for these services without making significant capital expenditures that could be stranded if not utilized. Table 17. Shared service provision in phase one Shared Service Phase One Provider Water audit validation In-house (MWDOC) Customer meter testing Leak detection Pressure surveying NO -DES flushing Contractor(s) In-house (MWDOC) In-house (MWDOC) Contractor(s) S,.,i finr; Plan )nd Organizational Structure Staffing; P!an Water loss control shared services will be offered through a combination of in-house staff and contracted services. Shared services implemented with in-house staff will initially be level 1 water audit validation, distribution system leak detection, and distribution system pressure surveying. Due to the significant capital investment needed to purchase and warehouse meter accuracy testing and system flushing equipment, these services will be contracted in the first phase of shared service implementation. If at a later date MWDOC determines that customer meter testing and/or NO -DES system flushing would be appropriate to offer as an in-house service, staff will return to the Board to request authorization. Staff completed an analysis of in-house staff needs to provide water audit validation, distribution system leak detection, and distribution system pressure surveys. Additional time is included to capture the administrative time necessary to facilitate both in-house and contractor -provided shared services. Table 18 shows that 1.81 full-time equivalent (FTE) staff are needed for a "low" level of shared services and 2.26 41 FTE staff are needed for a "high" level of shared services. Using the results of the Shared Services Survey, the "low" level of participation assumes that 100% of agencies designating "highly likely" and 50% of agencies designating "likely" will participate. The "high" level of participation assumes that 100% of "highly likely" and "likely" agencies will participate. This staffing analysis also includes time for the Supervisor to assist the Director of Water Use Efficiency with technical support for water loss control policy development and competitive selection processes necessary for contractor -provided shared services (meter accuracy testing and distribution system flushing). Knowing that the State Water Resources Control Board has a deadline to establish a water loss standard by July of 2020, the amount of time needed for policy support will be significant. Together, these activities are estimated to require an additional 0.20 FTE for the Supervisor position. And finally, this analysis includes 0.10 FTE (per FTE) for holiday, vacation and sick time. Table 18: Proposed water loss control shared services staffing Position and Responsibilities Funding Mechanism Staffing Need (Low) Staffing Need (High) Water Loss Control Programs Supervisor 0.97 1.03 1.19 Level 1 water audit validation Core 0.10 0.14 Customer meter accuracy testing Choice 0.09 0.09 Distribution system pressure surveys Choice 0.32 0.44 Distribution system flushing Choice 0.22 0.22 Water loss policy development Core 0.20 0.20 Overhead (holiday, sick & vacation time) Core 0.10 0.10 Leak Detection Technician * 0.78 1.07 Distribution system leak detection Choice 0.68 0.97 Overhead (holiday, sick & vacation) Core 0.10 0.10 Total 1.81 2.26 * excludes suspected leak investigations. Staff is recommending two full-time equivalent employees be hired to provide water loss control shared services — one Water Loss Control Program Supervisor and one Leak Detection Technician. The primary responsibilities of the Water Loss Control Program Supervisor would be overall program supervision and administration, scheduling of services, policy development, water audit validation, pressure surveys, and water loss control work group planning, coordination, and implementation The primary responsibilities of the Leak Detection Technician would be leak detection and assistance with pressure survey equipment deployment and recovery (when available). Draft job descriptions for both positions are provided as Appendix 3. 42 Organizational Structure The proposed Water Loss Control Shared Services will be housed within MWDOC's Water Use Efficiency Department and would be the responsibility of the Director of Water Use Efficiency as shown in Figure 14. The Water Loss Control Programs Supervisor will report to and be supervised by the Director of Water Use Efficiency and would be located at the vacant work station in the accounting department. The Water Loss Control Programs Supervisor would manage the day-to-day operations of water loss control shared services, including the Leak Detection Technician. The Leak Detection Technician is primarily a field-based employee however, any time spent working in the office would be floating at any open work station. Water Use Efficiency Programs Supervisor Figure 14: Water Loss Control Shared Services Organizational Structure Physical Location Both staff and water loss control equipment will be located at MWDOC's current Fountain Valley offices. There is currently one vacant work station in the MWDOC Accounting office area. The Water Loss Control Programs Supervisor will be assigned to this work station. The Leak Detection Technician is primarily a field-based position; therefore, limited office space would be needed, usually on Fridays. Leak detection equipment will continue to be stored in the secure vault location adjacent to the copy room. Lqulpment and Training Initial Equipment Needs The equipment needs for shared services staff include vehicles, vehicle accessories, and safety equipment. In the past few months, Yorba Linda Water District and Irvine Ranch Water District obtained bids for the 43 purchase of vehicles designed to meet the needs of MWDOC's field staff. These bids ranged from $29,000 to $29,500 per truck from Chevrolet and Ford, respectively. Vehicle accessories such as cab guards, corner strobes, traffic directors, and tool boxes ranged from $1,700 to $2,000 per vehicle. Therefore, the cost for purchasing two vehicles including accessories is approximately $62,400. Safety equipment for staff includes work gloves, rubber gloves, safety glasses, spray paint, pipe locators, traffic cones, hard hats, and ANSI Class III safety vests. In addition, two computer work stations and one laptop for field work will be needed. The initial cost for this equipment is approximately $10,400, with the pipe locators composing the majority of this expense. Staff training will be required for level 1 water audit validation and general field operations safety. The California-Nevada section of the American Water Works Association administers the Level 1 Water Audit Validation (WAV) certificate program. Trainings are offered a few times each year. In 2018, the training and certification exam fee was $2,000 per individual. In addition, general field staff safety training will also be an important requirement for MWDOC field staff. The cost for safety training is estimated to be $2,000. The total training expense is therefore estimated to be $4,000. Ongoing Fclulpmenl or Staff Related Costs Ongoing costs are anticipated to include cell phone service, auto insurance, boot allowances, uniforms, vehicle fuel, and maintenance. Some of these costs will be incurred monthly while others will be incurred annually. The annual cost for these expenses is approximately $8,600 per year. In summary, initial vehicle, equipment, and safety costs are estimated to be $76,800, and ongoing costs are estimated to be $8,600 per year. Shared Services Pricing In the private sector cost comparison section above, staff estimated the cost for MWDOC to provide each in-house shared service. These fixed unit cost estimates, provided in Table 9, will be charged by MWDOC to agencies accessing shared services. Cost estimates for level 1 water audit validation, distribution system leak detection, and distribution system pressure surveys include both administrative time to facilitate the service and time to perform the service. Cost estimates for customer meter accuracy testing and distribution system flushing only include administrative time for MWDOC staff to facilitate the contractor- provided shared services. These costs will be refined annually based on actual costs incurred. This approach will provide agencies with certainty of costs to be incurred and allow agencies to budget in advance of accessing the shared service. MWDOC will fund remaining costs not covered by participating agencies, and these costs will not be included in the OCWD groundwater customer charge. 44 Table 19: MWDOC shared services pricing Shared Service Unit Cost Water audit validation $840 per validation Customer meter testing Distribution system leak detection Suspected leak survey Pressure survey NO -DES flushing $168 administrative fee * $207 per mile $259 per suspected leak $3,360 per survey $840 administrative fee * * Unit costs for meter testing and system flushing only include administrative costs for MWDOC staff to facilitate contractor -provided shared services. Promotion MWDOC's Water Loss Control Shared Services will be promoted on an ongoing basis through a combination of core and choice services. Core services will be funded by MWDOC and will be available to all agencies. Choice services will be funded by participating retail agencies and will only be charged to those who elect to use those services at a rate proportional to the service quantity accessed. Agencies will be asked to identify the services they plan to use during the coming fiscal year. This will be conducted in coordination with the annual budgeting process to allow time for MWDOC to plan staffing and scheduling of services and for agencies to budget for the services they plan to access. Annual shared services exhibits added to the master water loss control shared services agreement will formalize each agency's participation. Should an agency not complete an annual shared services exhibit but decide mid -year to access shared services, they will be considered on a case-by-case basis as shared services resources are available. If shared services resources are not available that year, this agency will be scheduled for services on a first come -first served basis at the beginning of the following year. Water Loss Control Shared Services Agreement Agencies choosing to access MWDOC water loss control shared services will be required to sign a shared services agreement. A draft of this agreement is provided as Appendix 4. This agreement will initially have a five-year term. Annual addendums to the shared services agreement will be used to define what shared services will be accessed each year for each agency. Addendums will allow for annual adjustments to the types of services to be accessed, fees to be charged for services, and the addition of new shared services as they become available. This same agreement and addendum structures have been used effectively for the last three years for MWDOC's water loss control technical assistance program. Agencies will be asked to make their annual shared services elections in the third quarter of each fiscal year. This will allow agencies time to budget for the services within their normal budget cycle and will allow MWDOC staff time to schedule and manage workloads in the coming year. Agencies may need to supplement their election of services partway through the year, which can be accommodated by submitting an additional addendum defining the additional services. Supplemental addendums will be accepted as staffing and contract services availability permit. 45 Timeline Should the Board authorize implementation of the Water Loss Control Shared Services Business Plan, staff will initiate a five-year implementation plan as scheduled in Table 20. This process will begin by incorporating costs into the fiscal year 2019-20 (FY19-20) budget. As the new fiscal year draws near, staff will begin the recruitment process for the two new positions, with the goal of having the new staff start in July or August of 2019. This will allow staff to begin offering shared services at the beginning of FY19- 20 with level 1 water audit validation, leak detection, customer meter accuracy testing, and pressure surveys offered first. NO -DES distribution system flushing will require a Request for Proposals process to select contractors to provide the service. MWDOC staff anticipate this process will be complete by the end of the calendar year to allow flushing services to begin in early 2020. Over time, staff will monitor the type and volumes of shared services accessed by each agency. Monitoring will include documentation of actual costs so that the shared services charges to agencies are refined each year. In year -three (or sooner, as possible), staff will evaluate the feasibility of transitioning the meter accuracy testing and system flushing to in-house provided services. Ultimately, if this transition is found to be feasible, Board authorization will be required. Table 20: Five-year shared services implementation plan Shared Service Year I Year II Year 111 Year IV Year V FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 Water Audit MWDOC Staff MWDOC Staff MWDOC Staff MWDOC Staff MWDOC Staff Validation Outside Vendor - Customer Meter Outside Outside Outside Vendor Outside Vendor consider MWDOC Accuracy Testing Vendor Vendor or MWDOC Staff Distribution System MWDOC Staff MWDOC Staff MWDOC Staff MWDOC Staff MWDOC Staff Leak Detection Distribution System MWDOC Staff MWDOC Staff MWDOC Staff MWDOC Staff MWDOC Staff Pressure Surveying Distribution System RFP Process to Outside Outside Outside Vendor - Outside Vendor Flushing Select Vendor Vendor Vendor consider DOC or MWDOC Staff St Technical Advisory Committee The Water Loss Control Work Group (Work Group), comprised of MWDOC and retail water agency staff, has been actively engaged in water loss control activities since 2015. The Work Group meets every other month and has an extensive knowledge of water loss control practices and retail water agency needs. The Work Group has been instrumental in shaping the direction of water loss control, both in Orange County and across California. Moving forward, staff will utilize the Work Group as a technical advisory committee to identify, develop, and recommend water loss control shared services. Recommendations will be presented to the MWDOC Board for consideration. 46 Strategic Alliances MWDOC's water loss control shared services can foster strategic partnerships with state agencies, neighboring retailers, and private -sector experts. These partnerships could inform state and regional policy, regional collaboration and research, and funding acquisition. State Agencies and Policy Development The California State Water Resources Control Board is currently establishing water loss standards that will meet Senate Bill 555 requirements. The water loss standards will then be folded into the water budget framework under development in accordance with Executive Order B-37-16, "Making Water Conservation a California Way of Life." State Water Resources Control Board staff have solicited MWDOC's water loss analysis results to date to inform the standards setting process. However, a lack of data on the relationship between investment in water loss control and the return on that investment is hampering efforts to develop a cost -justified regulatory framework. Therefore, MWDOC is well-positioned to support retail agencies in cost-effective water loss recovery and then use the results of its program to drive the statewide conversation on water loss objectives. Water Systems Optimization Since 2016, Water Systems Optimization (WSO) has provided water loss technical assistance to MWDOC retail agencies. WSO has also supported MWDOC in developing shared services and equipment for its retail agencies, including contracted customer meter testing, a leak detection and pressure monitoring equipment lending library, and the possible future water loss control services described in this business plan. WSO could be kept under contract to support MWDOC's water loss control shared services implementation by: • Analyzing and tracking key performance indicators and return on investment • Communicating shared services results to other key stakeholders (e.g. the Department of Water Resources and State Water Resources Control Board) • Evaluating the technical merits of expended shared services • Integrating MWDOC's water loss control shared services with other water loss control analysis and intervention (e.g. water audit compilation, source meter testing) • Providing technical expertise in water loss control best practices Private Sector Service Providers MWDOC can partner with private sector service providers to meet short-term gaps in shared service availability, particularly if demand exceeds MWDOC staff's initial conservative forecasts. Additionally, private sector service providers can be contracted to provide capitally -intensive services like NO -DES flushing and customer meter testing, as previously described. Such partnerships would serve the dual purposes of supporting local private sector service providers while enabling MWDOC agencies to more quickly engage with water loss analysis and reduction. 47 Private sector service providers that MWDOC has worked with on water loss control to date include: • Westerly Meter Testing (Compton) • McCall's Meter Service (Hemet) Neighboring Agencies The MWDOC work group has facilitated knowledge transfer between Orange County agencies and neighboring agencies like the Metropolitan Water District of Southern California, the San Diego County Water Authority, and the City of Long Beach Water Department. Working relationships with neighboring agencies have allowed MWDOC to access additional data (e.g. customer meter test results) and service and product recommendations (e.g. Advanced Metering Infrastructure service providers). Financial Plan Staff propose that MWDOC fund all initial and ongoing equipment costs using MWDOC's general fund as a core contribution and that agencies pay for staff time associated with the shared services they access as choice services. Staff also recommend that MWDOC's core contribution be excluded from the OCWD Groundwater Customer Charge, since OCWD is not a candidate for water loss control shared services. Initial costs (for example, vehicles, equipment, and training) are required to initiate shared services. These costs include $62,400 for vehicles and accessories, $10,400 for office and safety equipment, and $4,000 for staff training. On-going costs of $10,400 per year are anticipated for cell phones, uniforms, footwear allowances, auto insurance, and vehicle fuel. Participating agencies will then fund shared services they access on a per-unit basis, as proposed in Table 21. These unit costs include salary and wages, employee benefits and other overhead costs such as office supplies, computer maintenance, software and support, telecommunication, etc. Table 21: MWDOC shared services pricing Shared Service Unit Cost Water audit validation $840 per validation Customer meter testing Distribution system leak detection Suspected leak survey Pressure survey NO -DES flushing $168 administrative fee * $207 per mile $259 per suspected leak $3,360 per survey $840 administrative fee * * Unit costs for meter testing and system flushing only include administrative costs for MWDOC staff to facilitate contractor -provided shared services. Should the initial retail agency subscriptions for shared services not fully fund the two proposed staff members, MWDOC will fund remaining costs as core activities. During this time, staff will actively promote shared services to minimize the draw of staff time on the general fund. 48 Grant Funding As is done with MWDOC's Water Use Efficiency Program, every effort will be made to access grant funding to assist with implementation of water loss control shared services. Grant funds could be used for a variety of activities, including the purchase of equipment, funding shared services, and/or conducting water loss related research. Funding opportunities include local, state and federal sources such as Metropolitan Water District of Southern California, California Department of Water Resources, California State Water Resources Control Board, and the US Bureau of Reclamation Field Services or Water Smart opportunities. To date, MWDOC staff have acquired funding for water loss control from the Bureau of Reclamation and the Metropolitan Water District of Southern California for leak detection equipment and leak detection research, respectively. The cohesion and reach of MWDOC's water loss control offerings to its retail agencies make funding more attractive to funders looking for impact, efficacy, and industry leadership. Exit Strategy If MWDOC embarked on offering shared services as described above and any of these services were no longer desired by retail agencies, staff would implement an exit strategy. The exit strategy will limit losses and will consider the following: • It is more likely that an individual shared service will be discontinued rather than all shared services. • Every effort will be made to transition in-house staff to another agency needing that individual's expertise. • Shared services equipment will be sold, if appropriate, especially to MWDOC retail agencies. • MWDOC will include a termination clause in professional services agreements between MWDOC and the contract service provider(s). 49 Appendix 1: Retail Agency Shared Services Survey Water Loss Control Shared Services Business Plan Member Agency Survey Survey Background Over the last three years, MWDOC established a comprehensive water loss control technical assistance program for water agencies throughout Orange County. This effort grew out of the legislative requirements of Senate Bill 1420 (2014) and Senate Bill 555 (2015). The program began with technical assistance, provided by Water Systems Optimization, Inc. (WSO), and included water balance compilation, component analysis, distribution system leak detection, and reporting that contains recommendations for further actions to improve an agency's understanding of water loss control opportunities within their system. This program has evolved over time with the addition of sales and production meter accuracy testing in 2016, water audit validation in 2017, and the establishment of a distribution system leak detection equipment lending library in 2018. With the exception of the equipment lending library, these services are accessed by member agencies through the "Choice" program framework; on an annual basis, agencies choose the services they desire and then pay for access to those services. During this same time, MWDOC also facilitated bi-monthly Water Loss Control Work Group meetings, open to all agencies, with the intent of furthering collaboration and understanding of broader water loss control opportunities. Since these efforts started in 2015, the level of interest from water agencies throughout Orange County for these and other water loss control services has grown. As a result, in February 2018 the MWDOC Board authorized staff to explore offering Water Loss Control Shared Services directly from MWDOC to member agencies. MWDOC staff will be developing a Water Loss Control Shared Services Business Plan (Business Plan) for review by both the member agencies and the Board. Before any shared services are provided (beyond our current offering), the Business Plan must be approved by the MWDOC Board. Staff is planning to present the draft Business Plan to the Board later this year and will continue to engage with agencies along the way. The purpose of this survey is to help MWDOC staff understand what shared services member agencies are interested in and how they should be funded. The results of this survey will be used to establish preliminary participation assumptions that will be used in developing the Business Plan, though responses to the survey are not binding. The potential water loss control shared services to be explored in this survey and possibly in the Business Plan include the following: a Annual Water Balance Validation • Water Meter Accuracy Testing (large and small sales meters) 50 • Distribution System Leak Detection • Distribution System Pressure Surveys • Distribution System Flushing The shared services could be offered using our well established "Core" and "Choice" funding framework, with "Core" activities available to all agencies funded through the MWDOC general fund and "Choice" activities funded by member agencies at the level of service of their choosing. These services could be accessed through an extended term Shared Services Agreement. The Agreement would outline the basic roles and responsibilities of MWDOC and the member agencies. Annually, each agency would complete a Shared Services Participation Exhibit. This Exhibit would identify which shared services they would like to access and at what level of service (e.g., the number of meters to be tested or miles of main to be surveyed for leaks). Agencies will have the choice to opt in or out of shared services annually/periodically. The following are basic tenets of MWDOC's Water Loss Control Shared Services: • Offer shared services at a competitive or lower cost than the same services provided by the private sector • Provide quality shared services on par with or better than the same services provided by the private sector • Realize economies of scale for these services by providing services at a regional level that cannot be justified at many local levels • Continue collaboration and shared learning among all agencies throughout this process • Phase implementation of new shared services over time, starting with the services that have the highest level of interest or demand by water agencies • Integrate program administration and data management to share results and customize program offerings to the unique conditions of each member agency As you are completing the survey, keep in mind that we do not have answers to all the questions that may come to mind at this time. We believe you will want to know the cost of these services prior to committing to such a program. The Business Plan will have estimated costs, but we do not have the costs outlined at this time. It is important that we fully understand all concerns you may have; therefore, we have provided space in the survey for you to ask questions or to express concerns. Please use these sections of the survey to bring this information to our attention. Participating in this survey is completely voluntary. However, we strongly encourage all agencies to participate in order to provide us the clearest understanding of your collective views. Additionally, taking the survey does not commit your agency to any shared service. 51 The following provides a brief description of each shared service we are exploring within the Business Plan, along with specific questions for each shared service. Water Audit Validation Shared Service Senate Bill 555 (2015) requires urban water suppliers to conduct an annual water loss audit in accordance with the method adopted by the American Water Works Association Water Audit and Loss Control Program Manual M36 using the Free Water Audit Software. The Bill also requires those audits to be independently validated by a company or individual that did not contribute to compiling the audit. Furthermore, the validator must hold a Level 1 Water Audit Validator certificate issued by the California - Nevada section of the American Water Works Association. MWDOC could provide annual Level 1 Water Audit Validation services by a certified validator for water suppliers throughout Orange County. 1. If MWDOC provided annual Water Audit Validation services, as required by SB 555, would your agency participate? a. Highly Likely b. Likely c. Unlikely 2. Should annual Water Audit Validation be a Core or Choice funded activity? a. Core b. Choice c. Please share why you prefer this as a Core or Choice activity. 3. Please share any questions or concerns you may have regarding proposed annual Water Audit Validation shared services: Sales Meter Accuracy Testing Shared Service Sales meter accuracy testing can assess the accuracy of an agency's customer meters in order to distinguish between apparent loss and real loss in the annual water audit. Sales meter testing can also be harnessed to refine customer meter replacement schedules and confirm the performance of newly purchased meters. Large customer meter tests, particularly on high -consumption accounts, can verify accurate revenue generation on key accounts. Furthermore, some customer meter testing may be required in the future if Assembly Bill 3206 passes, though the details of such required testing have not yet solidified. If MWDOC provided statistically -based Water Meter Accuracy Testing services across all customer meter sizes, would your agency access these services? a. Highly Likely b. Likely c. Unlikely 52 2. If MWDOC provided Water Meter Accuracy Testing services for new meters, would your agency access these services? a. Highly Likely b. Likely c. Unlikely 3. If MWDOC provided independent verification of meter accuracy in response to a customer claim of inaccuracy, would your agency access these services? a. Highly Likely b. Likely c. Unlikely 4. If MWDOC provided meter accuracy testing services, how many meters do you anticipate testing per year, on average? 5. Should Meter Accuracy Testing be a Core or Choice funded activity? a. Core b. Choice c. Please share why you prefer this as a Core or Choice activity. 6. Please share any questions or concerns you may have regarding proposed meter accuracy testing shared services: Distribution System Leak Detection Shared Service Acoustic leak detection identifies unsurfaced leaks using listening equipment and leak correlations. By proactively finding and repairing unsurfaced leaks, an agency can reduce real loss, avoid catastrophic infrastructure failure, minimize contaminant potential, and extend asset life. Additionally, proactive leak detection will be recognized by state regulatory agencies as a form of water loss management improvement required by Senate Bill 555. Lastly, all agencies will be required to meet water loss standards that will be published in July 2020, so proactive leak detection may be necessary to maintain compliance with impending water loss regulation. If MWDOC provided partial- or full -system leak detection services for distribution infrastructure, would your agency participate? a. Highly Likely b. Likely c. Unlikely 2. If MWDOC provided partial- or full -system leak detection services, how many miles of distribution main do you anticipate surveying per year, on average? 53 3. If MWDOC provided distribution system leak detection services to check for a suspected leak, would your agency participate? a. Highly Likely b. Likely c. Unlikely 4. Should distribution system leak detection be a Core or Choice funded activity? a. Core b. Choice c. Please share why you prefer this as a Core or Choice activity. 5. Please share any questions or concerns you may have regarding proposed distribution system leak detection shared services: Distribution System Pressure Survey Shared Service Distribution system pressures can be logged for a variety of reasons: transient identification and mitigation, district metered area design, data collection that informs pressure optimization, and water audit pressure estimation, to name a few. Pressures are recorded at fire hydrants using high -frequency loggers that log data over a period of days to weeks and can identify pressure transients (also known as water hammers or pressure surges). If MWDOC provided distribution system pressure surveys (system -wide or pressure zone), would your agency participate? a. Highly Likely b. Likely c. Unlikely 2. Should distribution system pressure surveys be a Core or Choice funded activity? a. Core b. Choice c. Please share why you prefer this as a Core or Choice activity. 3. Please share any questions or concerns you may have regarding proposed distribution system pressure survey shared services: Distribution System Flushing Shared Service Distribution system flushing is required to maintain water quality within the distribution system. System flushing is generally accomplished by attaching a diffuser to a fire hydrant and flushing water out of the system to convey sediment that impacts water quality. A new method of system flushing has emerged using a No -DES flushing vehicle. This vehicle not only flushes the distribution system effectively, but flush water 54 is filtered and recovered back into the distribution system, resulting in saved water and avoiding negative public perception by flushing into the street. To learn more about this system, go to: https://www.youtube.com/watch?v=k3KHPg6vmzk The City of Huntington Beach recently purchase a No-DES Truck that went operational on May 1 St, and the City of La Habra contracted to have their system flushed in 2017 using this technology. 1. If MWDOC provided distribution system flushing services, would your agency participate? a. Highly Likely b. Likely c. Unlikely 2. If MWDOC provided distribution system flushing services, how many miles of distribution main do you anticipate flushing per year, on average? 3. Should distribution system flushing be a Core or Choice funded activity? a. Core b. Choice c. Please share why you prefer this as a Core or Choice activity. 4. Please share any questions or concerns you may have regarding proposed distribution system flushing shared services: 55 Appendix 2: Shared Services Survey Responses Water Audit Validation Shared Service If MWDOC Should Please share why you prefer this Please share any provided annual annual Water as a Core or Choice activity. questions or concerns Water Audit Audit you may have regarding Validation Validation be proposed annual Water Services, as a Core or Audit Validation Shared required by SB Choice Services. 555, would your funded agency activity? participate? City of Anaheim Likely Choice The Core and Choice funding do not None. apply to Anaheim. Anaheim funding will be per Master Agreement between MWDOC and Anaheim. City of Brea Highly Likely Core requirement of the state none City of Buena Highly Likely Choice Agency should have the choice to use none Park this service. City of Fountain Highly Likely Core It should be a Core activity since it is none Valley required of all agencies and cost sharing through MWDOC is the most beneficial method to all agencies. City of Fullerton Highly Likely Choice We would most likely participate, but if Would this be done by a something were to change, either MWDOC employee or a third internally here or at the state level, we party like WSO? would like the chance to opt out. City of Garden Likely Choice It just makes sense. None Grove City of Highly Likely Choice If an agency does not wish to none at this time Huntington participate, they should not be forced Beach to subsidize other agencies who are. City of La Habra Highly Likely Choice I like the freedom of choice and am I don't have any questions. I willing to pay for those services that appreciate the shared are utilized. I understand that not all services and view them as a agencies have the capacity to perform highly qualified extension of these additional responsibilities our workforce[ without additional personnel or impacting current responsibilities. City of La Palma Highly Likely Choice Though some agencies may choose to None at this time. have an agency representative get certified to perform in-house validation, La Palma given its staffing level would continue to enlist the aid of MWDOC and WSO for the compilation of its water loss audit and ultimate validation. City of Newport Highly Likely Choice I think member agencies should have No concerns Beach the opportunity to opt in or out of the service depending on if they have someone in-house to provide these services for them. The cost of the program should not be put on those agencies opting out of the service. City of Orange Highly Likely Choice We would like to have the flexibility of Cost selecting the activities that fit our specific needs. City of San Highly Likely Core At least for this coming year it seems I hope to see an economy of Clemente almost all agencies would benefit from scale in the pricing of validation services and thus the cost I validation services through a 56 57 could be shared across all of MWDOC. MWDOC staff or contracted However, in future years, as agencies validator - along with invest in getting their staff validated, it streamlined contracting, it might be better served as a Choice will help justify the cost activity. compared to us getting an individual contractor on board at the City to do this for us. City of San Juan Likely Choice A central common auditor would The auditor needs to stick to Capistrano streamline the process. the strict criteria of the audit requirements, and not make an extended project out of it. City of Santa Ana Highly Likely Choice It seems the best fit for Santa Ana - This year we are using WSO MWDOC relationship. to perform and validate our FY 2017/18 audit. We anticipate using consultant services to fill this need moving forward. City of Seal Highly Likely Core Since every agency/district must NA Beach perform this activity, it seems natural to include this work as a part of MWDOC's services to all agencies/districts City of Tustin Likely Choice Allows for equitable cost sharing and none allows agencies to opt out of services they do not wish to use. City Of Highly Likely Core Westminster has minimal staff. With Westminster would Westminster only one analyst to fill out the water absolutely use this service audit, there is no second person readily and all aspects of the shared available in-house to validate. We service are of interest to would be required to become Westminster. validators which is a large burden for a small agency. East Orange Highly Likely Choice Better opportunities for cost control I don't understand the scope County W.D. and efficiency of the water audit services and how or if the size of the agency affects the cost/level of effort. EI Toro W.D. Highly Likely Choice Individual agencies are making choices How much time would whether or not to participate in the MWDOC need to complete service. The cost should not be shared the validation? When would by agencies not choosing to benefit the Water Audit need to be from the service. submitted to MWDOC to provide enough time to complete the validation such that the agencies can meet the Water Audit submittal deadline? Irvine Ranch Highly Likely Core There is currently a limited number of Inclusion of this as either a W.D. certified and experienced data core or choice option should validators. be reviewed annually as the pool and pricing for data validators grows. Laguna Beach Likely Choice Some agencies may choose to handle With the wide variation in County W.D. this audit differently. complexity, it may be difficult to determine the work involved. Mesa W. D. Highly Likely Choice Some agencies may have an in-house Oh, I think this is a great certified validator. idea. With MWDOC providing the validation, OC agencies will have consistency in data validation scores and our 57 58 relative scores will reflect relative data validity. Moulton Niguel Likely Core The annual water audit validation is Service must be W.D. now a state-wide requirement. offered at competitive or lower cost than found elsewhere. Santa Margarita Likely Choice While SMWD is pursuing certification Only concern is that SMWD W.D. for validation, we would prefer having anticipates doing more in - a 3rd party validation. That being said, depth validations some other agencies might prefer to periodically on our own. have the option to validate themselves or have another vendor perform the function. Serrano W.D. Likely Choice I think that you are more likely to get no concerns the program support from agencies if it is Choice. South Coast Highly Likely Core State mandated. WSO has clarified all W.D. concerns to date. Trabuco Canyon Highly Likely Core Required by regulations None W.D. Yorba Linda Highly Likely Core Core, because of the difficulty If shared services for Audit W.D. becoming a certified validator. Validation take away a lot of money from other potential services, we may want to opt -out of this particular item. 58 Sales Meter Accuracy Testing Shared Sem4ce If MWDOC If If MWDOC If MWDOC Should Please share why Please share provided MWDOC provided provided Meter you prefer this any questions statistically- provided independent Meter Accuracy as a Core or or concerns based Water verification Accuracy Testing Choice activity. you may have Water Meter of meter Testing be a regarding Meter Accuracy accuracyin Services, Core or proposed Accuracy Testing response to how many Choice Meter Testing Services a customer meters do funded Accuracy Services for new claim of you activity? Testing across all meters, inaccuracy, anticipate Shared customer would would your testing per Services. meter sizes, your agency year, on would your agency access these average? agency access services? access these these services? services? City of Likely Likely Likely 300-400 Choice The core and None. Anaheim Choice funding do not apply to Anaheim. Anaheim funding will be per Master Agreement between MWDOC and Anaheim. City of Brea Unlikely Unlikely Unlikely 0 Choice we do in house none City of Unlikely Unlikely Unlikely Unsure Choice Agencies should none Buena Park choose City of Likely Unlikely Likely 350 Choice It should be a none Fountain Choice activity Valley because only select agencies would participate in this. City of Likely Unlikely Likely Cost Choice We have our own N/A Fullerton dependant meter testing bench for smaller meters and meter testing truck for larger meters. The only reason we don't use them as much as we could is because we don't have the staff. City of Likely Likely Likely 500 to Choice It just makes sense. None Garden 1000 Grove City of Unlikely Unlikely Unlikely 0 Choice If an agency does None at this Huntington not wish to time Beach participate, they should not be forced to subsidize those who do. City of La Highly Highly Highly 100 Choice I don't have staff or No problems. Habra Likely Likely Likely equipment to I've participated conduct testing in the past and whereas other benefitted from agencies might, so I a scale of think it reasonable economy rate. that this activity is 59 60 offered as a choice Happy with the rather than a core results. function. City of La Highly Likely Likely 25 to 50 Choice some agencies may None at this Palma Likely already perform time. this service in- house and may not find this necessary as a Core MWDOC activity. Given its staffing level La Palma would not perform this service in-house but would benefit from the economies of scale for this annual testing service. City of Likely Likely Likely 200 Choice Same answer as No concerns. Newport before. some Beach agencies may have their own agreements in place for this service. City of Likely Likely Likely Around Choice Our annual budget None at this Orange 200 may not allow us to time. participate in all activities. City of San Unlikely Unlikely Unlikely 0 Choice Choice, because Our agency has Clemente many agencies a long-standing already have meter individual testing programs contract with a that they may meter testing prefer to maintain company and it rather than going meets our through MWDOC needs entirely with a new while giving us contractor/process. direct access to testing professionals for efficient and quick services ..... so we would not be terribly interested in the choice program for this item. City of San Likely Likely Unlikely 100 Choice To have a None. Juan choice. Capistrano City of Santa Likely Unlikely Unlikely 100 Choice It seems the best fit We are Ana for Santa Ana - currently more MWDOC likely to utilize relationship. meter testing services to focus on our large meter inventory rather than trying to establish a statistical 60 61 baseline for the City. City of Seal Highly Highly Unlikely 50 Core Again, if all NA Beach Likely Likely agencies must perform this activity per state law, why not consolidate these services in one area (MWDOC) at a lower cost than doing agency by agency City of Likely Unlikely Unlikely 100 Choice same as last 7 none Tustin City of Highly Likely Unlikely 200 Core Economy of scale. This could be a Westminster Likely We believe all function that is agencies will rolled out eventually be eventually. If required to do this, this starts as a and a core function choice function, will lower cost on a and moves to county -wide scale. core, we would wait to add on as this is not currently urgent. East Orange Likely Likely Likely 25-40 Choice Better I think MWDOC County W.D. opportunities for should contract cost control out for this service and not hire this type of specialized service in-house EI Toro W.D. Unlikely Unlikely Likely Minimal. Choice Individual agencies Meter testing are making choices in responsed whether or not to to customer participate in the claims of service. The cost None inaccuracy should not be are expected shared by agencies to be very not choosing to Infrequent. benefit from the service. Irvine Ranch Unlikely Unlikely Unlikely 0 Choice IRWD conducts its This is a good W.D. own meter testing. service for agencies that do not otherwise have a means to test meters. The costs should be covered by the agencies that use the service not all MWDOC member agencies Laguna Unlikely Unlikely Unlikely None Choice Since, we would None Beach not use this service County W.D. we would prefer it be choice. Mesa Water Highly Highly Highly 300 Choice Some agencies No concerns. District Likely Likely Likely have in house This is a great meter test idea. benches. 61 Moulton Unlikely Unlikely Unlikely 0 Choice Moulton Niguel has N/A Niguel W.D. its own meter test bench and trained technicians. Santa Highly Unlikely Unlikely Unknown Choice Some agencies The statistically - Margarita Likely won't be interested based portion and/or have their of the water W.D. own test benches. meter accuracy testing is what's interesting to me. Based off the data validity grades provided in the AWWA spreadsheet, having the testing be statistically - validated will be incredibly helpful. One of the requirements that SMWD would have is that we want to perform in-line testing so that customers are not inconvenienced. Serrano Highly Unlikely Highly 30 Choice Same reason as None W.D. Likely Likely abpove South Coast Highly Unlikely Likely 50 meters Choice So it is an option. None at this W.D. Likely time. Trabuco Highly Unlikely Likely 45 Choice Some agencies None Canyon Likely have their own test benches and would W.D. not utilize the service Yorba Linda Highly Likely Highly 500 to Choice Choice, so agencies The same W.D. Likely Likely 1,000 can op -out. concern as the one listed in response to item number five. 62 Distribution System leak Detection Shared Semlice, If MWDOC If MWDOC If MWDOC Should Please share why Please share provided provided provided Distribution you prefer this as any questions partial- or full- Distribution partial or full System Leak a Core or Choice or concerns system Leak System Leak system Leak Detection activity. you may have Detection Detection Detection be a Core or regarding Services for Services to Services, how Choice proposed distribution check for a many miles of funded Distribution infrastructure, suspected distribution activity? System Leak would your leak, would main do you Detection agency your agency anticipate Shared participate? participate? surveying per Services. year, on average? City Of Likely Likely 50 Choice The Core and Choice None. Anaheim funding do not apply to Anaheim. Anaheim funding will be per Master Agreement between MWDOC and Anaheim. City of Brea Likely Likely 100 Choice unsure if we would none need the service offered City of Buena Likely Likely 3-5 Choice Agencies should none Park choose City of Likely Likely 20 Choice It should be a none Fountain Choice activity Valley because only select agencies would participate in this. City of Unlikely Unlikely 0 Choice At the moment, we Come back to us Fullerton have to many main with this breaks to take care question in 5-10 of before we really years. Hopefully start leak detection. we'll have gotten some of the main breaks under control by then. City of Likely Likely At least 1 mile Core Because we have None Garden aged distribution Grove system. City Of Unlikely Unlikely 0 Choice If an agency does None at this Huntington not wish to time Beach participate, they should not be forced to subsidize those who do. City Of La Likely Unlikely 50 Choice Same reasons as Good service. Habra previous two Large scale of services. inspections completed in a short period of time. City of La Highly Likely Highly Likely 2 to 5 Choice La Palma would None at this Palma certainly benefit time. from the economies of scale for such services but unsure 63 64 of this as a Core MWDOC function. City of Unlikely Unlikely 0 Choice Same as before No concerns Newport Beach City of Unlikely Unlikely Not sure Choice Up to now, the cost While the leak Orange per mile of leak detection result detection seems is definitely pretty high. useful to water Hopefully with agencies, the higher participation restrained budget rate from agencies, may prevent us the cost would be from completely somewhat more repair all the affordable. found leaks. City of San Unlikely Unlikely 50 Choice Our agency has Concerns include Clemente somewhat cost/cost- distinctive leak effectiveness, detection needs response time that are better (would still need served by our own to rely on own leak detection staff for time - program. Paying for sensitive leak a core program that detection tasks), has somewhat how different primary comprehensive objectives (i.e. the service is and water loss control what type of leak versus slope detection protection and risk methods are management) may involved, and the be helpful but may reliability of the also be redundant work - performed for some agencies in by MWDOC staff? our situatiob. contractor? with Choice programs what training? give agencies the opportunity to opt in/out depending on their own individual cost/benefit analysis and current spending and resources. City of San Likely Likely 10 Choice The need for the The methodology Juan service is not clearly of the leak Capistrano defined in San Juan. detection is unspecified. We havefound acoustic testing lacking in clear benefits; and prefer correlative leak detection methods. City of Santa Unlikely Unlikely 0 Choice It seems the best fit We are currently Ana for Santa Ana - pursuing an AMI MWDOC project and relationship. anticipate incorporating leak detection capabilities into the future AMI system. 64 City of Seal Highly Likely Highly Likely 10 Core Same as previous NA Beach answers. Since all agencies would have to perform these services, why not consolidate into one agency (MWDOC) performing this services for all agencies at a probably lower cost than performing these services alone City of Tustin Likely Likely 10 Choice same as other ? none City of Unlikely Likely 20 Choice Our system is Westminster is currently tight. Not not entirely Y a needed function convinced of at this point. the technology. Having some interaction with new technology may help. East Orange Highly Likely Highley Likely 0-40 Choice Better opportunity Contract for this County W.D. for cost control service/provide cost savings through combined purchasing power - this is evolving technology and effectiveness can be highly variable depending upon pipe type and operator skill EI Toro W.D. Unlikely Unlikely 0 Choice Individual agencies None are making choices whether or not to participate in the service. The cost should not be shared by agencies not choosing to benefit from the service. Irvine Ranch Unlikely Unlikely 0 Choice IRWD implements This is a good W.D. its own leak service for detection program. agencies that do not otherwise have leak detection programs. The costs should be covered by the agencies that use the service not all MWDOC member agencies Laguna Unlikely Unlikely None Choice We would not None Beach utilize this service. County W.D. 65 Mesa Water Likely Likely To meet SB Choice Some agencies may I think its a good District 555 already have an choice option. requirement effective in house leak detection program. Also, I think we would only do leak detection if it is required by SB 555. Moulton Unlikely Unlikely 0 Choice Moulton Niguel will N/A Niguel W.D. perform this activity in-house. Santa Unlikely Unlikely 0 Choice SMWD wouldn't Our component Margarita want to analysis shows W.D. participate in this that it would for several years. not be cost- effective to perform leak detection for quite some time. Serrano W.D. Highly Likely Highly Likely 5 Choice More likely None support South Coast Highly Likely Highly Likely 180 miles Choice It should be an None at this W.D. option. time. Trabuco Unlikely Likely Unknown Choice Not all agencies Expensive and Canyon W.D. would need this may not be service funded Yorba Linda Highly Likely Highly Likely TBD Core Core, because YLWD The same W.D. desires to complete concern as the leak detection one listed in within the entire response to item District within number five. approximately 18 - months. 66 Distribution System Pressure Surveys If MWDOC Should Please share why you prefer Please share any provided Distribution this as a Core or Choice activity. questions or concerns Distribution system you may have regarding System Pressure Pressure proposed Distribution Surveys (system- Surveys be a System Pressure Survey wide or pressure Core or Choice Shared Services. zone), would your funded agency activity? participate? City of Anaheim Likely Choice The Core and Choice funding do not None. apply to Anaheim. Anaheim funding will be per Master Agreement between MWDOC and Anaheim. City of Brea Unlikely Choice we manage internally none City of Buena Unlikely Choice Agencies should choose none Park City of Fountain Likely Choice This should be a Choice activity none Valley because only select agencies would participate in this. City of Fullerton Unlikely Choice I'm not sure what this is. Is this like N/A Surge Detection? If yes, then we would like to participate in it. City of Garden Likely Core Because we have aged distribution None Grove system. City of Unlikely Choice If an agency does not wish to None at this time Huntington participate, they should not be Beach forced to subsidize those who do. City of La Habra Likely Choice For the same reasons as noted with I don't know enough on this previous activities. topic and the scope of the services. We are deploying battery -powered loggers in our system that provide real-time data to a cloud based server. City of La Palma Likely Choice La Palma would certainly benefit None at this time. from the economies of scale for such services but unsure of this as a Core MWDOC function. City of Newport Unlikely Choice Same as before. No Concerns Beach City of Orange Likely Choice Flexibility None City of San Unlikely Choice Similar to our opinion on other Cost, and possible Clemente shared services, the unique redundancy with what challenges (topography) of our we already manage agency's service area means we would prefer to be able to opt out and monitor. of a shared services that works for many agencies, but does not add as much value for us. We already monitor pressure at many turnouts and pump stations throughout our hilly service area so we might be better off using the potential cost of this shared service to work with a consultant to refine our pressure management through modeling. City of San Juan Unlikely Choice We do not see an immediate value None. Capistrano in this in that we know what our pressures are, and cannot lower 67 68 them without loosing service in the higher elevations of any particular pressure zone. City of Santa Ana Unlikely Choice It seems the best fit for Santa Ana - City is considering AMI MWDOC relationship. systems which may be able to incorporate pressure monitor!ng/survey. City of Seal Highly Likely Core same answers as before. If it is a My City has only one Beach new requirement of the state as a pressure zone, so I am not part of the water loss control audit, completely sure how this then perform it for all agencies as a service will affect/help my part of the Core program. city. However, if It is a core program, then we will be a part of it. City of Tustin Unlikely Choice same as other ? none City of Unlikely Choice Not needed at this point in time. Westminster does not Westminster believe it has pressure problems. East Orange Unlikely Choice Better cost control opportunity We do this in-house County W.D. EI Toro W.D. Unlikely Choice Individual agencies are making None choices whether or not to participate in the service. The cost should not be shared by agencies not choosing to benefit from the service. Irvine Ranch Unlikely Choice IRWD currently monitors system The costs should be covered W.D. pressure. by the agencies that use the service not all MWDOC member agencies Laguna Beach Unlikely Choice This would not be helpful for our None. County W.D. system. Mesa Water Likely Choice Some agencies have established It would need to be done to District pressure monitoring. a standard that we could the pressure data to calibrate our hydraulic model, and maybe even provide the data to developers for fire sprinkler calcs. Moulton Niguel Likely Choice Ability to opt in or out is desired. Does this shared service W.D. only provide the equipment, or would technical support also be included? What would be the frequency of testing? What would be the next steps if and when transients are identified? Santa Margarita Likely Choice Some utilities may not want to This is an intriguing option W.D. participate. that SMWD would be interested in. We don't have the available bandwidth to go install the loggers, collect the loggers, and combine the data. In addition, we have too many pressure zones to get an accurate picture with our available pressure loggers. Serrano W.D. Likely I Choice More likely support None South Coast Likely Choice like options. None. W.D. 68 Trabuco Canyon Likely Choice Not needed by all Agencies This is a valuable service if it W.D. can be funded by the Agency. Yorba Linda Unlikely Choice Choice, because we only The same concern as the W.D. occasionally need to monitor one listed in response to pressures and we have an in-house item number five. monitoring program. 69 Distribution System Flushing Shared Services If MWDOC If MWDOC Should Please share why Please share any provided provided Distribution you prefer this as a questions or Distribution Distribution System System Flushing Core or Choice concerns you System Flushing Services, Services be a Core activity. may have Flushing how many miles of or Choice funded regarding Services, distribution main activity? proposed would your do you anticipate Distribution agency flushing per year, System Flushing participate? on average? Shared Services. City of Likely 20 Choice The Core and Choice None. Anaheim funding do not apply to Anaheim. Anaheim funding will be per Master Agreement between MWDOC and Anaheim. City of Brea Likely 30 Choice we have a loop none system City of Buena Likely Unknown Choice Agencies should none Park choose City of Likely 202 Choice It should be a Choice none Fountain Valley activity because only select agencies would participate in this. City of Unlikely 0 Choice Our maintenance N/A Fullerton crews currently perform their own hydrant flushing program. City of Garden Unlikely Don't know Choice It just makes sense. None Grove City of Unlikely 0 Choice If an agency does not None at this Huntington wish to participate, time Beach they should not be forced to subsidize those who do. City of La Highly Likely 25 Choice Prefer as a choice Great ideal I would Habra activity considering like to get on a current staffing levels regular cycle of and the time flushing and constraints for this outsourcing this type of work. type of work is a viable way to get it done. City of La Highly Likely 42 dead ends and Choice La Palma would Nome at this Palma approximately 10 certainly benefit from time. miles of mains to the economies of scale for such services begin with but unsure of this as a Core MWDOC function. City of Unlikely 0 Choice same as before NO concerns Newport Beach City of Orange Likely Unsure Choice Flexibility Will it be uni- directional flushing? City of San Unlikely 100 Choice the level of service Cost, level of Clemente may not be enough to service, training to cover our entire use the equipment system at the rate at (assuming we 70 71 which we need to would provide the flush, so this activity operator?). We would best serve us also have 303 dead as a supplement to ends in addition to traditional flushing all of our hydrants that we could opt in that we already to on an annual basis, invest a lot of time but be able to opt out and money into of in years when managing with coordinating between traditional flushing, two types of flushing so using this service activities is too would require cumbersome and/or some operational costly. adjustments in staffing, scheduling, etc. City of San Likely 50 Choice We have a contract None. Juan flushing program in Capistrano place. City of Santa Likely Not yet Choice It seems the best fit None. Ana determined for Santa Ana - MWDOC relationship. City Of Seal Likely 10 Core Same answers as Seal Beach provides Beach before only about 1 mile of flushing every couple of years (not counting dead ends we flush City of Tustin Likely 1 Choice we would only use none this service as needed. City Of Likely 63 Core It's a needed function This also depends Westminster that we haven't done on drought because of the conditions. drought. If we could incorporate the NO- DES truck, we'd be interested. East Orange Highly Likely 20 Choice Better opportunity for Do this via contract County W.D. cost control service or assist with grant purchase opportunity - don't hire in-house EI Toro W.D. Unlikely 0 Choice Individual agencies None are making choices whether or not to participate in the service. The cost should not be shared by agencies not choosing to benefit from the service. Irvine Ranch Unlikely 0 Choice IRWD implements its The costs should be W.D. own programs. covered by the agencies that use the service not all MWDOC member agencies Laguna Beach Unlikely None Choice We would not utilize None County W.D. this service. Mesa Water Likely 10? Choice Cost No-Dez may be District cost prohibitive 71 72 compared to traditional flushing. Moulton Unlikely 0 Choice Ability to opt in or out It is our Niguel W.D. is desired. understanding that this type of flushing is mainly used to remove sediment, which our distribution system does not typically have to deal with. Our system does not have large particulates, turbidity, or residual problems. When our system requires flushing, we don't want to put the water back into the system. Santa Unlikely 0 Choice Choice given that this Unless the cost was Margarita W.D. has been significantly significantly lower more expensive than than what we've just flushing seen, SMWD would traditionally. probably not be interested. Serrano W.D. Unlikely 0 Choice Likely support none South Coast Unlikely N/A Choice Should be an None. W.D. option. Trabuco Unlikely Unknown Choice TCWD internal staff I believe there is Canyon W.D. would perform this more value to the Agency to perform this service themselves. Yorba Linda Highly Likely Approx. 75 -miles. Choice Choice, so other The same concern W.D. agencies can as the one listed in participate or opt- response to item out. number five. 72 Appendix 3: Job Descriptions MUNICIPAL WATER DISTRICT OF ORANGE COUNTY JOB TITLE: WATER LOSS CONTROL PROGRAMS SUPERVISOR DEPARTMENT: WATER USE EFFICIENCY SUPERVISOR: DIRECTOR OF WUE STATUS: NON-EXEMPT SALARY GRADE: TBD Position Summary: Under general supervision, the Water Loss Control Programs Supervisor is responsible for overseeing implementation of Water Loss Control Services including Water Audit Validation, Distribution System Leak Detection, Distribution System Pressure Surveys, and Distribution System Flushing. These services will be provided by the District to its retail water agencies throughout Orange County. Duties and Responsibilities (Essential Functions): • Supervise the overall implementation of Water Loss Control Services Program including supervision and evaluation of subordinate staff, consultants and other service providers. • Schedule and coordinate shared services with up to 32 retail water agencies. • Conduct Water Balance Validations for up to 32 retail water agencies in accordance with SB 555 requirements. • Present progress, findings, and available services at bi-monthly District water loss control work group meetings. • Ensure compliance with all District policies. • Conduct performance management review of employees. • Provide reports or updates on implementation and impact of services to management, accounting and retail agency staff. • Prepare Request for Proposals and make recommendations to management and the Board for contract services as needed to perform shared services. • Ensure that proper use and maintenance of District vehicles are adhered to while performing job duties and any District related duties. Qualifications (Knowledge, Skills and Abilities): Knowledge of: Water loss control strategies and implementation plans, including: • water audit compilation and validation methodology • pressure management • proactive leak detection • customer meter accuracy testing and management 73 • distribution system flushing • progress tracking mechanisms • water loss and conservation regulations in California Ability to: • Effectively communicate both orally and in writing. • Operate in a Microsoft Office Suite software environment, with specific proficiency in Microsoft Excel. • Communicate effectively with all levels including management, office/field employees, member agencies and retail customers, and outside contractors/vendors. • Represent the District in a professional manner when dealing with member agencies and retail customers, outside contractors and agency officials. • Advise and provide interpretation to others on how to apply policies, procedures and standards to specific situations. • Establish and maintain effective working relationships with all those encountered in the course of work. • Use good personal judgement and discretion in performing all job functions. • Exercise independent judgement when making decisions involving specific job functions, shutdowns and most efficient utilization of staff and equipment in absence of Supervisor. • Calculate water formulas and interpret application tables and charts; knowledge of algebra and basic statistics. • Practice safe work methods in the course of work. Education and Experience: Graduation from high school or G.E.D. equivalent. An Associate degree in water and/or wastewater treatment environmental studies, mechanical or electrical engineering is preferred. Five (5) years of increasingly responsible experience in the operation, maintenance, and repair of operation of underground water utilities. The qualification guidelines generally describe the knowledge and ability required to enter the job in order to successfully perform the assigned duties. Any combination of education, experience and training that would provide the required knowledge, skills and abilities will be considered. Other Requirements: 1) Possess and maintain or ability to acquire a valid Cal-Nev American Water Works Association Water Audit Validator Certification, 2) possess and maintain a California State Water Resources Control Board Grade 2 Water Distribution Certificate, or the ability to obtain within one year of hire date and 3) possess and maintain a valid California driver's license 74 All District employees are Disaster Service Workers by CA state law and are expected to participate in emergency response initiatives. This could include contributing to the emergency planning process, participating in disaster exercises and training, as well as potentially responding to support actual emergency events. Working Conditions and Physical Activities: Environment: The employee works in a shop and field environment where the noise level is typically moderate. The employee works in outdoor weather conditions; extreme heat or cold; wet humid conditions; precarious places; on uneven or slippery surfaces; near moving mechanical parts; near moving equipment; and near heavy traffic. The employee is occasionally exposed to loud or prolonged noise and equipment with heavy vibrations. The employee may be exposed to environmental factors. Physical Demands: While performing the duties of this job, the employee is regularly required to walk and stand; talk and hear; use hands to finger, handle, feel or operate objects, tools or controls; balance on ladders or stairs; stoop, kneel, bend at the waist, crouch or crawl; and smell. The employee will be required to lift up to 50 pounds and may be required to lift up to 100 pounds with assistance. The employee must walk frequently. Visual ability (which may be corrected) to read handheld meter reading device screens, small print, including good peripheral vision and depth perception. Specific vision abilities required by this job include close vision, distance vision, and peripheral. MUNICIPAL WATER DISTRICT OF ORANGE COUNTY JOB TITLE: WATER LOSS CONTROL PROGRAMS TECHNICIAN - LEAK DETECTION DEPARTMENT: WATER USE EFFICIENCY SUPERVISOR: WATER LOSS CONTROL PROGRAMS SUPERVISOR STATUS: NON-EXEMPT SALARY GRADE: TBD Position Summary: Under direct supervision, provide Distribution System Leak Detection services to up to 32 retail water agencies throughout Orange County. Assists the Water Loss Control Programs Supervisor in day-to-day operations of meter accuracy testing activities. Candidate will also periodically participate in distribution system pressure surveys of retail systems. Operate a District vehicle and utilize and operate required machinery essential to perform the job. Duties and Responsibilities (Essential Functions): The duties listed below are intended only as illustrations of the various types of work that may be performed. The omission of specific statements of duties does not exclude them from the position if the work is similar, related or a logical assignment to this class. 75 • Ability to walk frequently during the course of the work day locating underground water leaks using a variety of tools, including but not limited to acoustic leak sounding rods, ground microphones, and leak correlators. • Determine the source of leak and who is responsible for repair (retail agency or other agency.) • Document suspected leaks and confirmed leaks thoroughly, according to District documentation standards and using District documentation forms. • Drive, operate and maintain equipment, tools, and vehicles. • Routinely required to work in the roadway and provide traffic control, according to District safety standards. • Read and interpret blueprints, maps, atlases, and specifications. • Deploy and recover distribution system pressure loggers on retail water agency distribution systems throughout Orange County. • Develop and maintain positive working relationships with District and member agency staff and members of the public. • Ability to communicate effectively with retail water agency staff and all individuals who the position interacts with while representing the District. • Provide equipment and maintenance support to member agency/retail staff. • Comply with applicable retail agency procedures. • Ensure job site is left safe and clean. • Responsible for keeping accurate journals and work assignments. • Comply with safety work-related practices and attend relevant safety training. Qualifications: • High school graduation or equivalent. • 1-3 years of experience in water maintenance work or related field. • Familiarity with hand and power tools. • Familiarity with Windows based computerized environment and Preventive Maintenance database programs is highly desirable. • Knowledgeable in the maintenance and operation of water distributions systems. Knowledge of: • Methods and procedures used in pulling and repairing large water meters and other equipment. • Traffic control practices and requirements. • Safety policies, procedures and safe work practices applicable to assignment including OSHA regulations. • Principles and practices of sound business communication; correct English usage, including spelling, grammar and punctuation. • Records management, recordkeeping, filing and basic purchasing practices and procedures. 76 • Use and operation of computers, and preventive maintenance database programs. Ability to: • Effectively communicate both orally and in writing, with all levels of staff, including retail water agency staff, customers, office/field employees, management and vendors. • Represent the District in a professional manner when dealing with retail water agency staff, customers, outside contractors and agency officials. • Advise and provide interpretation to others on how to apply policies, procedures and standards to specific situations. • Calculate water formulas and interpret applicable tables and chart; knowledge of algebra. • Establish and maintain effective working relationships with all those encountered in the course of work. • Use good personal judgement and discretion in performing all job functions. • Exercise independent judgment when making decisions involving specific job functions, shutdowns and most efficient utilization of staff and equipment in absence of Supervisor. • Fully and accurately document suspected and confirmed leaks, including location and degree of certainty. • Practice safe work methods in the course of work. Education and Experience: Graduation from high school or GED equivalent and 1-3 years of experience reading meters and testing or replacing/repairing or calibrating meters (5/8" through 36") in either the field or shop settings. Other Requirements: 1) Possess and maintain or ability to acquire a valid Cal-Nev American Water Works Association Water Audit Validator Certification, 2) possess and maintain a California State Water Resources Control Board Grade 2 Water Distribution Certificate, or the ability to obtain within one year of hire date and 3) possess and maintain a valid California driver's license and automobile insurance under the terms of the District's Vehicle Insurance Policy. All District employees are Disaster Service Workers by CA state law and are expected to participate in emergency response initiatives. This could include contributing to the emergency planning process, participating in disaster exercises and training, as well as potentially responding to support actual emergency events. Working Conditions and Physical Activities: Environment: The employee works in a shop and field environment where the noise level is typically moderate. The employee works in outdoor weather conditions; extreme heat or cold; wet humid conditions; precarious places; on uneven or slippery surfaces; near moving mechanical parts; near 77 moving equipment; and near heavy traffic. The employee is occasionally exposed to loud or prolonged noise and equipment with heavy vibrations. The employee may be exposed to environmental factors. Physical Demands: While performing the duties of this job, the employee is regularly required to walk and stand; talk and hear; use hands to finger, handle, feel or operate objects, tools or controls; balance on ladders or stairs; stoop, kneel, bend at the waist, crouch or crawl; and smell. The employee may be required to lift up to 50 pounds; and may be required to lift up to 100 pounds with assistance. The employee must walk frequently. Visual ability (which may be corrected) to read handheld meter reading device screens, small print, including good peripheral vision and depth perception. Specific vision abilities required by this job include close vision, distance vision, and peripheral. 78 EXHIBIT C Insurance Requirements MWDOC shall obtain prior to commencing work and maintain in force and effect throughout the term of this AGREEMENT, all insurance set forth below. MWDOC insurance is provided through the Association of California Water Agencies Joint Powers Insurance Authority and such other insurers as MWDOC may determine from time to time. A. Workers' Compensation Insurance MWDOC will keep workers' compensation insurance for its employees in effect during all work covered by this AGREEMENT in accordance with applicable law. MWDOC will provide an ACORD certificate of insurance or other certificate of insurance satisfactory to PARTICIPATING AGENCY, evidencing such coverage. B. Liability and Other Insurance MWDOC will maintain during the term of this AGREEMENT general liability coverage of not less than $1,000,000 per occurrence for bodily injury, personal injury and property damage; automobile liability (owned, scheduled, non -owned or hired) of at least $1,000,000 for bodily injury and property damage each accident limit; workers' compensation (statutory limits) and employer's liability ($1,000,000) (if applicable); requiring 30 days (10 days for non payment of premium) notice of cancellation to PARTICIPATING AGENCY. MWDOC's insurance coverage shall be primary insurance as respects PARTICIPATING AGENCY, its directors, officers, agents, employees, attorneys, and authorized volunteers for all liability arising out of the activities performed by or on behalf of the PARTICIPATING AGENCY. Any insurance pool coverage, or self-insurance maintained by PARTICIPATING AGENCY, and its directors, officers, agents, employees, attorneys, or authorized volunteers shall be excess of MWDOC's insurance and shall not contribute to it. C. Contractor Insurance Coverage. In the event that the MWDOC employs Contractors as part of the work covered by the AGREEMENT, it shall be the MWDOC's responsibility to require and confirm that each Contractor meets the minimum insurance requirements specified herein. All Contractor insurance shall be placed with a carrier with an A.M. Best rating of no less than A: VII, or equivalent. Contractor will provide a certificate of insurance to MWDOC which names MWDOC and all PARTICIPATING AGENCIES as additional insureds. D. Expiration of Coverage If any of the required coverages expire during the term of the AGREEMENT, MWDOC and its Contractors, as applicable, shall deliver the renewal certificate(s) including the general liability additional insured endorsement to DISTRICT at least ten (10) days prior to the expiration date.