ASHLAND — City officials are considering making some improvements to Ashland’s water treatment and distribution system aimed at reducing costs and increasing efficiency.

On Thursday the Ashland Board of City Commissioners heard a presentation from representatives of Johnson Controls, Inc. Building Efficiency, which conducted a preliminary study of Ashland’s water distribution system, water treatment and sewer plants in April.

Among some of its key findings, said John Anderson, a senior account executive, is the percentage of unaccounted for water Ashland produces each day. According to the company’s analysis, 25 to 30 percent of the water that leaves Ashland’s plant is never billed.

Ashland produces between 11 and 12 million gallons of water a day.

The loss can be equated to a 30-cent loss for every dollar Ashland spends treating water, Anderson said, adding an average city has an 18 percent unaccounted water rate.

Rick Smith, public sector manager, said the loss is not surprising considering the age of Ashland’s infrastructure.

City manager Steve Corbitt said he was aware of the unaccounted for water prior to the analysis, but the city is limited in its ability to determine where that water is going.

According to Corbitt and Anderson, Ashland’s approximately 14,500 water meters, which are all between seven and 20 years old, are believed to be a major culprit, in addition to leaky water lines.

Water theft is also a culprit in the unaccounted water as is hydrant flushing. Some of the water may also be going to unmetered city facilities. There is also the possibility there is an unmetered major tie-in to city water lines from an area industry.

To help remedy the problem, Anderson suggested the city upgrade all residential and industrial meters and install a computerized method of meter reading for an estimated cost of $5 to $6 million. The new meters would not only more accurately measure the flow of water to individual households and industry but would, in the process, help to detect leaks.

“If they put in all these new meters we could tell where the water was going,” Corbitt said. “The computer can tell you what should be going out and also could tell you if there is disparity between points due to pressure of flows. You could isolate areas that might have leaks or undetected users.”

The upgrade would also reduce the number of water meter readers the city employs, saving not only salaries but money on vehicles and fuel.

Corbitt said those jobs typically have a high turnover rate as well as high workman’s compensation rates. A computerized system would also increase customer service capabilities such as more accurate and timely water bills, he said.

Ashland would pay for the upgrades with the savings generated under a decade-old state law that allows performance contracting for projects that increase the efficiency of infrastructure.

Funds for the project would be borrowed and require regular payments, but Johnson Controls would guarantee the cost savings of the projects, meaning they would make up any difference between their projected savings and actual savings. All projects are expected to pay for themselves within 10 years.

Anderson and Smith also suggested numerous other upgrades the city could make at the remaining facilities but did not give an estimated cost for those projects, which include replacing motors at the waste water facility, moving from a chlorine water treatment system to ultraviolet light system, and installing power factor capacitors.

Commissioners took no action Thursday, but Corbitt said he expects the issue to resurface when the city hires a new Director of Engineering Services and Utilities. The city is currently interviewing for the position.

CARRIE KIRSCHNER can be reached at ckirschner@dailyindependent.com or (606) 326-2653.