To: Members of the Castle Rock Water Commission
From: Mark Marlowe, P.E., Director of Castle Rock Water
David Van Dellen, P.E., Assistant Director
Roy Gallea, P.E., Engineering Manager
Title
Artificial Intelligence (AI) Leak Detection, Equipment and Services Acquisition Agreement with Digital Underground Solutions
Town Council Agenda Date: 2025
Body
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Executive Summary
The purpose of this memo is to request Town Manager’s approval of an equipment and services agreement (Attachment A) with Digital Water Solutions for leak detection technology using acoustical loggers installed on fire hydrants. The technology uses the data from the acoustical loggers to identify and locate water leaks in the distribution system. The initial implementation of this technology will be used as a pilot study in the Cobblestone Ranch subdivision. The cost for the initial phase of this project is $89,444 including 79,705 for eight permanent loggers for fire hydrants and $9,739 for software and training Staff also requests a town managed contingency of $8,900.
Discussion
Castle Rock Water (CRW) is looking to evaluate the potential to use AI technology for leak detection. Staff met with several vendors to evaluate their leak detection technology. Each vendor provided a demonstration of the capabilities of their technology. Staff determined that the Digital Water Solutions' solution was the best fit for CRW's goals. The technology uses pressure/acoustic sensors installed on hydrants within the distribution system. These sensors listen for the acoustic signature of leaks in the distribution system. Using multiple sensors, the AI technology can identify the magnitude and location of the leak within tens of feet. These leaks can be identified before they surface and repaired. This technology will also allow us to incorporate our advanced metering infrastructure (AMI) and supervisory control and data acquisition (SCADA) data to create district meter zones to track water balances and use within specific areas of the distribution system.
The goal of this software is to help reduce real water loss seen within the distribution system and ultimately capture lost revenue of produced water from these losses. CRW’s annual real losses from leaks in our distribution system range from 133.3 million gallons or 409.3 AF to 240.0 million gallons or 736.8 AF over the last five years. The value of this water is $410,770 to $643,070 based on an average sales price of $3.08 per thousand gallons. Reducing these water losses also helps to reduce the amount of water supply CRW has to develop to meet future demands. A rough cost for development of renewable water supplies is $50,000 per acre foot (AF) over and above the lost revenue. This project will allow CRW to evaluate the potential of this technology for use across the whole distribution system to save water supplies, ensure revenues for all water produced, use the supplies more efficiently, and reduce future water supply purchases.
Staff Recommendation
Staff recommends approval of a services agreement with Digital Water Solutions for AI hydrant leak detection. The cost for the first phase of the project is $89,444, plus a 10% Town managed contingency of $8,900 for a total authorization of $98,344. Funds will be authorized from the 2024 Distribution System Upgrades Account, 210-4275-442-75-38.
Attachments
Attachment A: Services Agreement