GENERAL COMMITTEE-COMMUNITY SERVICES AND ENVIRONMENT

 

 

 

 

 

TO:

Mayor and Members of Council

 

 

 

 

FROM:

Jerry Klaus, General Manager, Waterworks

 

 

 

 

PREPARED BY:

Karen Dennison, P. Eng., Manager System Engineering

 

 

 

 

DATE OF MEETING:

November 7, 2005

 

 

 

 

SUBJECT:

Implementation of Sector Management Areas (SMA) and District Management Areas (DMA) across the Water System

 

 

 


 

RECOMMENDATION:

 

THAT the report entitled “Implementation of Sector Management Areas (SMA) and District Management Areas (DMA) across the Water System” be received;

 

AND THAT the project be approved as described in the report “Implementation of Sector Management Areas (SMA) and District Management Areas (DMA) across the Water System”, for Waterworks to undertake in a staged approach;

 

AND THAT Veritech Consulting Inc. be approved as a single source for provision of consulting services for the pilot project component of the overall project entitled “Implementation of Sector Management Areas (SMA) and District Management Areas (DMA) across the Water System” in the amount of $53,160, exclusive of GST;

 

AND THAT a separate blanket purchase order be issued for contingency in the amount of $8,000, exclusive of GST, the use of which will be governed by the Expenditure Control Policy;

 

AND THAT the pilot project component be funded from Waterworks 2005 Capital Account 53-6150-6781-005 (DMA) District Management Area Pilot Project in the total amount of $61,160, exclusive of GST (including contingencies);

 

AND FURTHER THAT the pilot project be documented in a report to Council in 2006.

 

 

PURPOSE:

 

The purpose of this report is to inform Council regarding the strategic direction, purpose, and benefit of the overall “Implementation of Sector Management Areas (SMA) and District Management Areas (DMA) across the Water System” project.

 

To seek approval to proceed with a pilot project component. To obtain approval to hire Veritech Consulting Inc. as a single source in the pilot project to provide expert consulting services.

 

BACKGROUND:

 

In 1994, Waterworks was one of the first water systems which undertook a comprehensive system water audit with Heath consultants. The backbone of this water audit was temporary DMA’s.

 

In 1998, one of the segments of the Region of York’s “Water for Tomorrow” project was a water audit. The water audit strategy was partially based on Markham’s 1994 water audit and temporary DMA experience. Veritech Consulting Inc. provided the consulting services for the “Water for Tomorrow” project. During this project, Veritech’s staff gained familiarity with the Town of Markham’s distribution system and completed temporary district area management for leakage detection in Markham in October 2004. This project provided some early insights into reconciliation of purchased water versus consumed water as well as uncovering some valving issues, service and hydrant leaks.

 

However, experience from these previous water audit projects has shown that long term leak elimination and savings can not be realized through temporary DMA’s. Permanent sectors and districts must be established with continual monitoring in order to be able to see and respond to emerging system changes. 

 

The April 2003 Waterworks Audit Report by Delcan Corporation suggested a number of recommendations for Markham Waterworks which support undertaking and implementing a SMA and DMA project.

 

 

DISCUSSION:

 

GENERAL:

 

An emerging tool in optimizing operation of water distribution systems is the use of permanent SMA and DMA’s. The distribution network is permanently segmented into discrete sectors and districts where all water inputs and outputs are continuously monitored in order to obtain net volumetric input and net daily demand profiles. The main purpose and benefit is that Waterworks can more readily take charge of the system and identify areas of concern in a more proactive and focused manner. Significant improvements in net revenues and system operation have been reported by other municipalities after implementing sector style management. Revenue improvements have been achieved by identifying and reducing both leakage and unauthorized water usage.

 

The basic concept of this tool is to segment the distribution system into isolated management areas enabling focus on a specific discrete area. Through monitoring and data analysis of a specific management area, optimized operation as well as early recognition of any developing problems can be realized. These management areas can also be isolated quickly in emergency situations.

 

The Town of Markham operates a distribution system which is supplied via the Region of York system with water from Toronto treatment plants and trunk mains. The Town of Markham receives water from metered connections from either the Region of York (ROY) or the City of Toronto system. This project will enable Waterworks to investigate purchase issues (such as bulk meter verification, purchase and sales reconciliation) as well as system distribution issues (such as water balance, leakage, system management).

 

The establishment of system wide SMA and DMAs in Markham will be accomplished by applying emerging industry standards and best practices. Experiences gained through the pilot project will be used to improve Waterworks operations, safety and efficiencies.

 

Sector Management Areas (SMA’s): will be used to address revenue issues.

 

SMAs are permanent, larger management areas (following pressure zone delineations) and having between 5,000 and 15,000 service connections. SMAs are created without closing system valves therefore with minimal impact. A SMA is instrumented with meters and monitoring equipment through system chambers. This instrumentation will allow collection of specific system data. The primary parameters measured within a SMA are flow rate and pressure. Various water quality parameters may also be monitored. Sectors will be utilized in proactively managing the water distribution system on a larger scale to:

 

 

o              Enable verification of ROY and City of Toronto bulk water meters. Monitoring of sector flows will allow the assessment of bulk meters for accuracy. Volumetric data obtained can be directly compared to the bulk supply meters used for billing by the Region of York. Losses can be quantified and recovery initiated. Critical meters based on Markham revenue losses will be identified for replacement or re-calibration.

 

o              Facilitate lost revenue recovery through reconciliation of water purchase

(invoiced from Region of York) and sales (invoiced through Powerstream).

 

o              Ensure water quality through monitoring and optimized system operation.

 

o              Provide an early warning detection system for emerging leaks /system problems.

 

o              Provide capability to efficiently isolate discrete areas of the Town as part of

emergency preparedness (for example a spill or backflow situation).

 

o              Collection of valuable calibration and demand allocation data for updating of the

system hydraulic model.

 

o              Detection of system anomalies (closed valves, excessive demands, low pressure

areas, etc.).

 

o              Focus water conservation initiatives. With sector monitoring the diurnal usage pattern of both residential and commercial, users can be established. With this pattern, Waterworks can identify usage components such as irrigation, outdoor usage, and excessive ICI water usage. This information is extremely useful for water conservation efforts dealing with peak day demands, ICI water use reduction and public education. By monitoring sectors and identifying sector with high usage, conservation efforts and campaigns can be targeted to high use areas (similarly to targeting water loss and leak detection efforts in sectors with high night flows).

 

 

 

District Management Areas (DMAs): will be used to address system distribution issues. 

 

The permanent DMAs enable very focused management of the distribution system. DMAs are smaller sized management areas with typically 1,000 to 5,000 connections. They are designed to facilitate water balance, leak detection, hydraulic model calibration, and demand allocation. In order to measure flow and other parameters and to minimize the number of meters, some boundary valves will be required to be closed. Valve closures would be optimized so that system security, supply, and quality would not be compromised. This will be accomplished through comprehensive analysis of the impact of specific valve closures with the system hydraulic model and close interaction with the Fire Department. Districts will be utilized in proactively managing the water distribution system on a smaller scale to:

 

o              Enhance water quality assurance. Water movement in the distribution system can be optimized in order to reduce travel time and possibly enhance water quality in poor DMA’s. This will optimize current flushing programs by either reducing the number of flushing locations or reducing the amount of time for flushing.

 

o              Focused leakage management within DMA’s. Undertaking four leakage management activities as depicted in the following diagram to minimize annual real water loss.  This will result in improved revenues since each 1% reduction in water will save $425,000 annually.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proactive Leak Detection – through continual monitoring of DMA’s for leak properties (water loss, velocity change, pressure difference, diurnal changes etc.) along with reported leaks, locate and repair system leakage.

 

Improved Leak Repair Time - Enhanced awareness of system leakage within a specific DMA will reduce both main and service leak awareness, locating and repair time.

 

Pressure Management – DMA pressure modulation and flow monitoring will help to establish the benefit of a pressure management scheme for sustainable control of real water loss. Pressure modulation reduces the level of background leakage (small weeping leaks) and has potential to extend infrastructure life due to less system stress.

 

Infrastructure Management – the data obtained in the management areas will support prioritized capital programs and system operating decisions.

 

Revenue Meter Enhancement - Waterworks is planning to pilot a fixed area network Automated Meter Reading (AMR) program to evaluate the benefit of enhanced customer water meter reading. The AMR pilot will provide consumption profile information on an account by account basis. The use of DMAs will enhance this program by being able to directly compare total water flow into a sector with actual billed consumption on a daily and night time basis. This will help to identify high water users or users that may have constant demands.

 

 

Benchmarking Tool: SMA data collected along with calculations of system performance indicators will be used to establish leakage management benchmarking for Markham. The Town will be able to measure and compare its operation both over time and with performance of world class systems.

 

Simply reporting percentage losses for a system is misleading and lacks tools (components) to reduce the leakage. The model accepted internationally by the International Water Association includes the calculation of the Water Audit Infrastructure Leakage Index (ILI) and associated Economic Level of Leakage (ELL). Some water systems in Canada and the USA, as well as world leading utilities are now calculating and publishing these indicators.

 

Sector water audits and data inconsistencies revealed through monitoring of night flows will be investigated to minimize unaccounted for water. The difference between net water entering a sector and that sold is called non-revenue water. The following diagram indicates the water balance in a distribution system and identifies the losses that can be minimized more effectively using the sector management style approach.

 

 

 

 

 

 

Text Box: Annual

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Source:  International Water Association

 

 

SMA and DMA PILOT PROJECT:

 

In order to properly address implementation of a system wide segmentation of the Town into SMAs and DMAs with instrumentation for data collection, Waterworks has suggested a pilot project to commence this year (2005). The development of strategies, an initial system wide segmentation plan, and testing of the processes in four pilot areas will take place.

 

Four pilot DMA candidate areas have been selected by Town Waterworks staff for potential pilot management area locations. ATTACHMENT “A” shows an initial system wide segmentation of the Town into management areas as well as the location of pilot areas. ATTACHMENT “B” shows the overall system wide project’s timeline.

 

The pilot project would be operated for 8 months in order to get both summer and rest of year water use profiles. The overall SMA and DMA implementation strategy will be revised according to the pilot experience for system wide application.

 

The Goals of the Pilot Project are:

 

Ø             To develop an initial strategy and best practices approach for permanent sector style system management including suggested parameters to monitor.

 

 

 

Ø             To provide recommendations and determine cost effectiveness of the implementation and operation of a system wide SMA and DMA.

 

Ø             To review the selected pilot areas for:

o              Impact on fire fighting capability.

·               SMA’s will have no impact as no valves will be closed and no dead ends created.

·               DMA’s have potential for impact but will be investigated thoroughly with the hydraulic model and the fire department before implementation to prevent adverse impacts.

 

Ø             To test the accuracy and appropriateness of instrumentation types. Recommendations of appropriate meters (accuracies, costs) to satisfy both low flow (leak detection) and high flow (billing reconciliation) issues.

 

Ø             To test SCADA and remote data acquisition capability.  

 

Ø             To verify City of Toronto and Region of York bulk billing meters and investigate cost recovery objectives.

 

Ø             To collect SMA data that will be used to calibrate and determine demand allocation for Markham’s hydraulic model.

 

Ø             To share data and to interface with other concurrent pilot projects.

o              Markham’s AMR (automated meter reading) project.

o              The City of Toronto (pilot leak detection) project. We intend to partner and share our knowledge with the City of Toronto and vice-versa. The City is currently undertaking a similar pilot project with emphasis on leak detection and pressure modulation utilizing Veritech Consulting Inc. Toronto pilot project experience and recommendations will be reviewed and utilized in Markham’s strategic implementation plan. Toronto will be reviewing and incorporating as appropriate Markham’s  pilot project recommendations.

 

Ø             To document the pilot project and report to council in 2006.

 

 

SYSTEM WIDE (FULL) PROJECT:

 

The pilot project will provide the strategy, methodology, equipment and cost projections to implement a system wide SMA & DMA program. Best practices and pilot project experience as well as recommendations including City of Toronto pilot pressure modulation experience will be utilized in implementing the SMA and DMA approach over the entire Town. The full project is expected to be implemented over 2 to 3 years (see ATTACHMENT “B”).

 

The Town will be segmented into SMA’s and DMA’s and instrumented as required. We expect SMA’s to follow pressure district boundaries. DMA’s will be established based on system needs and data requirements without impact on system capacity.

 

During the development process, new areas should be designed with SMA and DMA requirements in place. Chamber(s) should be installed to facilitate management of new areas at the onset in order to minimize the cost of service impact on customers at a later date. The impact on the development industry is expected to be minimal as many valve chambers can be substituted for DMA boundary chambers.

 

Once fully implemented, the Town of Markham will join world class utilities in leakage management and have the capabilty to remotely collect system data and to isolate discrete areas of the Town in an emergency situation. The following benefits would be in place for Markham:

o              At the forefront of the water industry utilizing best practice techniques specifically designed for Markham

o              Benchmarking indicators established for measuring system improvement

o              Revenue reconcilliation

o              Distribution issues managed such as leakage, pressures, water quality parameters, optimum system flushing frequency, unauthorized water use etc.

o              Continuous system monitoring capablity of various parameters for trouble shooting, operation efficiencies and for an early warning detection system.

 

CONSULTING SERVICES:

 

 

A consultant will be engaged to provide expertise during the pilot project by providing a best practices and industry standards evaluation to guide this project. The consultant will review  the pilot design and assist with analysis of the data. Recommendations will be made on strategy and implementation of the system wide sectorization project.

 

We are recommending single sourcing the consulting services for the pilot project to Veritech Consulting Inc. Consultant costs including contingencies will be within $62,000. Assistance of an expert consultant at this early stage for professional advice is critical for the success of the overall project.  Veritech Consulting Inc. is considered to be expert in this field (well known and featured at International Conferences). Veritech Consulting also knows Markham’s water system from previous work in Markham including DMA work and the Region of York “Water for Tomorrow” leak detection work. The City of Toronto went through an RFP process earlier this year and selected Veritech Consulting Inc., determining that Veritech Consulting was by far the most qualified for their pilot project. We are coordinating our pilot project with parallel work at the City of Toronto. Sharing of resources, project information and utilizing the same consultant (with associated experts from across the world on the project team), will benefit Markham.

 

FINANCIAL CONSIDERATIONS:

This pilot project has been approved in the 2005 Waterworks capital budget. Funding is available to draw from in account 53-6150-6781-005 (DMA) District Management Area Pilot Project in the amount of $100,000.00. Financing for Phase II, system wide application has been submitted for consideration in the 2006 Budget estimated at $250,000.00. The benefits of this project include enhanced operation and pro-active water loss management which will have a positive contribution toward Waterworks net revenue as the system wide project is implemented in a prioritized staged fashion across 2006 to 2008.

 

The quantum of the positive contribution toward the Waterworks Net Revenue cannot be identified at this time.  However, as leaks in the Town’s water system are identified and corrected in a timely and accurate fashion, savings in terms of lower water losses will be achieved.

 

ENGAGE 21st CONSIDERATIONS:

Alignment to Corporate Goals

Environmental Focus

Financial Focus

 

BUSINESS UNITS CONSULTED AND AFFECTED:

 

The Fire and Emergency Services Department was consulted during the preparation of this report. Their comments and recommendations will be incorporated into the SMA and DMA design and application. The Fire staff will be consulted during the project as appropriate. 

 

The Finance Department was consulted and their comments have been incorporated into this report.

 

 

ATTACHMENTS:

 

Attachment “A” – Initial Management Area Location Plan & Pilot Area Location Plan

Attachment “B” – Multi-Year Project Timeline

 

 

 

 

 

 

 

 

 

 

Jerry Klaus, C.E.T., C.M.M.

General Manager, Waterworks

 

 

 Peter Loukes, P. Eng.

Director, Operations and Asset Management

 

 

 

 

 

___________________________________

Jim Sales

Commissioner, Community and Fire

Services

 

Q:\Commission Share\Operations and Asset Management\Reports\2005\Waterworks\Implementation of SMA & DMA Report - Oct 2005.doc