MUD OKs water meter replacement

DUANE CROSS
MCO Publisher • Editor

During the Metro Utility Department (MUD) Board meeting on Tuesday, April 8, officials unanimously approved the next step in a sweeping project to replace all Zenner water meters in the local system with Kamstrup smart meters – an initiative estimated to cost more than $1 million.

Voting for the project were Greg Guinn, Charles "Boo" Johnston, Barry Posluszny, Darrell Richards, and Glen Thomas.

The decision marks the second time in less than five years that the department has replaced its meters to battle ongoing water loss. Nashville-based Core & Main, the exclusive Kamstrup provider in the state, is expected to be the likely contractor.

The move follows continued concerns about significant non-revenue water – commonly referred to as water loss – which averaged 44% in 2024, according to MUD. For a system that processes roughly 25 million gallons per month, that represents a staggering loss of treated, unbilled water, costing thousands of dollars each month in revenue.

Water loss occurs when water is treated and delivered into the system but never billed due to issues like faulty meters, physical leaks, billing errors, or even theft. State law requires utility systems to be self-sufficient, meaning that lost revenue must eventually be made up by higher rates to customers.

Even more concerning, Tennessee Code Annotated § 7-82-702 defines any system with more than 40% water loss as “excessive,” a designation that can lead to state oversight or takeover if not corrected.

The current meters in the system – Zenner models installed in 2020 – were initially expected to solve previous water loss issues. That project, which cost $765,000, replaced 2,500 meters and was funded through a contract with Government Capital. But soon after installation, water loss levels remained unacceptably high.

By early 2025, MUD began looking into a full system replacement again, this time turning to Kamstrup meters, which had received high marks from engineers and industry experts. The decision was bolstered by reports from municipalities nationwide experiencing issues with Zenner meters, including battery failures, signal problems, and error codes.

Kamstrup meters use advanced AMI (Advanced Metering Infrastructure) technology, allowing for real-time data transmission. This allows utilities to remotely monitor water usage, detect abnormal consumption, and identify leaks faster than older models. They also feature ultrasonic sensors that can detect even the smallest flows, which Zenner meters cannot.

“We never once heard anything about testing reliability, and then the ‘low flow’ came up,” MUD Chair Posluszny said. “ ‘Oh, our meters don’t do low flow.’ I mean, how anybody in their right mind would put that into the ground to begin with … because once bitten, twice shy.

“Once you put ink on the paper and you sign a contract, you’re pretty much stuck,” he added. “And we are still stuck. We have these meters and a system that we’re still going to be paying for. I just want to make sure we don’t fall into that same trap again.”

Core & Main spokesman Kevin Winter assured the Board that extensive testing is performed on the Kamstrup meters, and ensured that low flow is captured.

In April 2024, MUD conducted a trial with 30 Kamstrup meters. The positive results led the Board to reconsider its four-year phased replacement plan and move toward a complete, system-wide replacement instead.

There will still be limitations in areas like the Charity community, where the lack of internet and cellular coverage prevents real-time transmission. For those 26 meters, MUD personnel will continue monthly drive-by readings using AMR (Automated Meter Reading) technology.

While MUD will need to continue honoring its existing Zenner meter contract, officials believe that the upfront investment in Kamstrup meters will ultimately pay for itself through recovered revenue from reduced water loss.

The project’s next steps hinge on the formal bid process, but if awarded soon, full replacement will begin later this year.

Engineer’s Report

Bryant Griffin provided an engineering cost estimate and project overview for a proposed expansion of the local water treatment plant. His report covered three main components: transmission lines, plant upgrades, and property acquisition.

Regarding the land needed for the plant expansion, MUD Chair Barry Posluszny said, “Sure as God made little green apples, this is going to come up somewhere. We may not be sitting here; it may not be us, but I don't think there’s any problem with trying to negotiate land. That way, we know they’ll sell it to us, number one. Number two, can we put it there, because why buy it if we can’t put it there? Which means we would have to move.”

Transmission Lines

• Raw Water Line: A 16-inch diameter line stretching 24,500 feet from Tanyard Hill down Bakertown Road, Good Branch Road, a portion of Highway 55, to the water treatment plant.
• Finished Water Line: A 12-inch diameter line running from an existing 12-inch line on Highway 55 down Main Street to the Dickey tank.
• Estimated Cost: $5.845 million, based on recent bids using ductile iron (more durable but 30% more expensive than PVC).

Water Treatment Plant Upgrades

• Equipment Costs: Plate settlers, flocculation, and sludge removal using existing basins total over $400,000.
• Plant Expansion: Increase capacity from 1.15 MGD to 1.725 MGD, requiring:
  • Clearwell expansion
  • Replacement of high-service pumps
  • Replacement of raw water intake pumps
  • Electrical upgrades at the intake site
• Estimated Cost: $3.45 million for the plant upgrades

Additional Costs

• • $600,000 for new raw water pumps
  • $35,000 for additional property
  • $200,000 for mobilization, insurance, and bonds

Total Project Cost

• Construction Cost Estimate: $10.153 million
• Contingency (10%): $1.015 million
• Soft Costs (engineering, etc.): $1.2 million
• Total Estimated Cost: $11.3 million

Comparison to Buying Water from Winchester

• Estimated cost: $12.5 million (including 10% contingency)
• Additional long-term costs: Winchester may charge $4 to $5 per 1,000 gallons under a likely 20-to 30-year contract.
• Producing water in-house would cost significantly less: approx. $1.25 to $1.50 per 1,000 gallons.

Land Acquisition Concerns

• The biggest hurdle is acquiring an acre of land near the existing plant.
• This land is necessary for clearwell and lagoon expansion.
• If acquisition is denied, alternative property will be needed – possibly requiring a more complex layout.
• Exercising eminent domain powers is a legal option but politically sensitive.

“The water treatment plant should have been built on top of the hill where you have your intake right now,” Griffin said. “In the ’90s, they looked at doing that, and it was so cost-prohibitive. They expanded your existing plant, and once they expanded it there, you were stuck, and it was expanded again in 2005.”

Griffin noted that plant upgrades would reduce usage from 80% to 50%, offering long-term capacity for growth.

Manager’s Report

MUD Utility Manager Ronnie Cunningham said a developer in Knoxville has inquired about water service to 18 acres behind the EMS building at the corner of Highway 50 and Main Street. The developer contends there is an easement that would allow for water lines to be run to the property.

If the property were approved for residential homes, a lift station would be necessary to move wastewater from lower elevations to a higher elevation where gravity flow is not sufficient.