20 Apr 2012
In The Press Permalink

SacAngel Mentoring and Networking Pays Off

April 20, 2012

SacAngel Mentoring and Networking Pays Off For Founder in Electro Scan

By aAngel, on April 20th, 2012

On this website we often mention the work we do in the community helping entrepreneurs and startups in ways other than purely putting up hard dollars – e.g., our Angels on Campus and Angel In Action programs, and being advisors in the VentureStart program. Most of that “community” work is done in the background and seldom are the results obvious or transparent – usually we’re just one of many helping hands contributing to any one success.

However, Bob Shallit of the Sacramento Bee wrote about Electro Scan this week and that struck a cord with us about the background story which he did not cover. In April 2011, a local Rescue, CA entrepreneur, Rob Harris, with a company and technology for finding leaks in sewer lines applied to the VentureStart program since (and we quote) they were “not familiar with the processes of seeking capital for establishing a business. We are seeking advice on the most appropriate methods to obtain capital, the best structure to setup to attract such capital and the type of deal that we can expect”.

They were reviewed and screened under the auspices of VentureStart by a set of advisors, including several from the SacAngels. Roger Akers, one of the founders of the SacAngels and General Partner of local VC company, Akers Capital, stepped up and took the company on as a mentoring assignment.

The end result of that assignment was not a SacAngel group investment, rather it was the networking that went on in the local Angel community and the subsequent investment by Chuck Hansen in Electro Scan (Chuck, incidentally is a member of the SacAngels). Rob Harris is now the CTO of the company and excited at the possibilities for strong growth.

It is nice to know that all the work that our members do has impact and, in this case, a direct outcome. And it let us all know that that our volunteer work does pay dividends for our startup community.

Recent Post at SacAngels.com.

17 Apr 2012
In The Press Permalink

Capital-area Investor Looks for Wealth Underfoot

April 17, 2012

Capital-area Investor Looks for Wealth Underfoot

 

Talk about your undergroundeconomy.

Local business exec Chuck Hansen, who sold his last company for a reported $100 million, is looking to make millions more with a new technology for detecting leaks in sewer pipes.

Hansen, who retired after selling Hansen Information Technologies in 2007, learned last year of a system that sends electronic current through pipes to spot leaks instead of the decades-old practice of running tiny closed-circuit TV cameras through the lines.

“It was love at first sight,” Hansen says of a system he says is much more reliable than the camera method.

He quickly acquired a majority stake in the technology and started up Electro Scan Inc.out of his Arden area offices that serve also as the “Track Shack” recording studio.

He has 16 employees now, is looking to double that number by the end of this year and reports international interest.

He’s projecting sales of $1 million the first year, much more later on.

“I think we might have something bigger than my last company,” he says.

Electro Scan has two products, both manufactured locally. One, priced at $15,000, is sold to plumbers and detects leaks in the “lateral” lines that run from a house to a sewer main.

A larger system, going for $75,000, is offered to municipal utilities for finding leaks in main lines.

As he’s always done, Hansen is finding a way to mix business with pleasure – specifically, with his love of playing saxophone. He traveled recently to Europe to drum up business for Electro Scan – and ended up performing with Tower of Power, the legendary R&B band, during a gig at La Cigale in Paris.

Read more here:
Bob Shallit’s Column

23 Jan 2012
In The Press Permalink

WEF Industry News

January 23, 2012

Date : 01-23-2012

Industry News – Electro Scan Inc. Announces New Products to Overhaul Sewer Pipeline Evaluation Market

Electro Scan Inc. today announced the availability of the ES-38TM for Sewer Laterals. The ES-38TM is the first in a series of next generation sewer evaluation products for plumbers and sewer utilities to identify and quantify pipe defects that cause leaks. The ES-38TM is designed for sewer laterals from 3″ to 8″ in diameter. The company also announced its companion Smartphone app and Critical SewersTM cloud computing application.

23 Jan 2012
Company News Permalink

New Products to Overhaul Sewer Evaluation Market

January 23, 2012

Electro Scan Inc. Announces Products to Overhaul Sewer Evaluation Market

New ES-38TM Finds All Defects That Cause Leaks in Sewers; Electro Scan Technology 3-5x More Effective Than CCTV

SACRAMENTO, Calif., January 23, 2012 – Electro Scan Inc. today announced the availability of the ES-38TM for Sewer Laterals.  The ES-38TM is the first in a series of next generation sewer evaluation products for plumbers and sewer utilities to identify and quantify pipe defects that cause leaks.  The ES-38TM is designed for sewer laterals from 3” to 8” in diameter.  The company also announced its companion Smartphone app and Critical SewersTM cloud computing Software as a Service (SaaS) application.

The first automated solution that finds all defects that cause leaks, supported by Smartphone and Cloud Computing apps.

“I’m delighted to introduce such an innovative technology,” states Chuck Hansen, CEO of Electro Scan Inc. “Plumbers and sewer utilities have traditionally used closed-circuit television (CCTV) cameras to inspect sewers.  Unfortunately, CCTV relies on subjective visual observations which are unreliable in finding leaks. In contrast, Electro Scan Inc.’s proprietary technology automatically finds leaks by measuring the variation of electricity passing through a pipe’s wall to locate cracks, fractures, defective joints, and faulty taps.  If a pipe leaks water, it leaks electricity, too!”

Electro Scan Inc. products uniquely identify all pipe defects that leak.  As a result, sewer utilities and plumbers can accurately locate all defects that cause leaks, certify that relined pipes and repairs are leak-free, and help eliminate costly upgrades to trunk line, storage, and treatment plants.

Key features of the ES-38™ for Sewer Laterals include:

  • Push Rod– Only needs access to a sewer clean out
  • One-Man Operation – A straight forward operation
  • Intelligent Data – Eliminates data interpretation or judgment, i.e., no visual observations required
  • Minimal Set-Up & Operation – Takes about 30 minutes to electro scan 100 feet of sewer lateral
  • Automated Reporting – Displays on smartphone or outputs to ruggedized printer via Bluetooth®
  • Transmits Data to the Cloud – Critical SewersTM allows office personnel to review up-to-the-minute scan results from the field to bid repairs

“We were delighted that the recently conducted U.S. EPA-sponsored field demonstration showed that sewer electro scan technology is more effective than CCTV at finding and quantifying defects that leak,” stated Rob Harris, Electro Scan Inc.’s Chief Scientist.  “We have designed our products to comply with the Society for Testing and Materials (ASTM) Standard F2550-06 and are proud to begin offering products and services that will spearhead the next generation in sewer leak detection.”

Currently, the State of California requires all residential properties and commercial businesses be properly connected to a sewer main, prior to the close of escrow.  Some utilities test a seller’s sewer lateral by using air or water pressure tests to determine whether a property owner’s sewer lateral has leaks. In the case of a ‘failed’ test result, utilities have been unable to tell property owners and realtors the exact location and severity of leaks.

Electro Scan Inc. provides a detailed analysis of a sewer lateral helping plumbers and property owners determine whether all or part of a sewer pipe needs replacement or repair; a difference of several thousand dollars.

The ES-38TM for Sewer Laterals has a retail price of $9,750, including the ES-38TM Air Push Rod.

“I apologize for the disruption that Electro Scan will likely cause,” stated Chuck Hansen. “Overhauling and replacing outdated support systems is always a difficult task.  But, we’ve worked hard to prepare a seamless roadmap to help make a successful transition.  Make sure you visit our website to download a copy of various case studies and published papers that feature electro scan technology, including a copy of the EPA Field Demonstration Report, that show electro scan technologies to be 3 to 5 times more effective than CCTV inspection.  You may never buy another CCTV camera again.”

About Electro Scan Inc.
Electro Scan Inc. designs, manufactures, and markets products utilizing sewer electro scan technologies and intelligent data solutions that identify and prioritize sewer defects that can leak.  Currently, the Company offers the ES-38TM to enable plumbers and sewer utilities to reliably and accurately identify all defects in sewer laterals that leak. The company also offers its smartphone app and ruggedized field printer, in addition to its Critical SewersTM cloud computing Software as a Service (SaaS) hosted application.  Electro Scan Inc. is a privately held company headquartered in Sacramento, California.  For more information visit https://www.electroscan.com.

Contact
Janine Mullinix
Telephone: 916-779-0660
Email: info@electroscan.com

01 Jan 2012
In The Press Permalink

Calif. Assemby Bill 741 Takes Effect January 1st 2012

January 1, 2012

AB-741 ‘The Huffman Bill’ Takes Effect Today to Help Prevent Groundwater Contamination

New Law Gives California Sewer Utilities More Financial Control Over Repair and Replacement of Sewer Laterals

SACRAMENTO, CA – Signed into law on July 26, 2011 by Governor Jerry Brown, authored by Assembly member Jared Huffman (D-San Rafael), AB-741 goes into effect today to prevent sewage spills and protect surface and groundwater from contamination.

AB 741 provides new flexibility to wastewater agencies and options for willing property owners to finance sewer improvements, which if left unrepaired, would lead to groundwater contamination and result in abatement orders for the agencies to clean up. The legislation authorizes public agencies to offer voluntary liens to property owners to finance septic and sewer improvements.

The conversions of septic systems to community sewer systems and the replacement or repair of damaged sewer laterals are needed to protect water quality and public health and safety. But the financial responsibility is on the property owner, and the costs can be exorbitant, discouraging property owners from making the investment.

However, the cost of not making these repairs is even greater for taxpayers. When aged and leaking sewage lines and septic tanks do not get fixed, the pressure mounts on our municipal sewage systems, increasing the risk of sewage overflows and groundwater contamination.

“This law provides an option to help property owners make needed onsite septic and sewer improvements, which will alleviate the need to spend public dollars cleaning up sewage overflows and contaminated groundwater,” said Assembly member Huffman. “It will also provide public benefits to water quality management, increase property values for private property owners, and create jobs.”

AB 741 was co-sponsored by Irvine Ranch Water District (IRWD) and North Bay Watershed Association.

“The Irvine Ranch Water District applauds Assembly member Huffman’s leadership on this issue,” said Steve LaMar, IRWD Board President. “As a co-sponsor of AB 741, we continually strive to find ways to further protect public health, water quality and the environment. AB 741 does just this and will be a valuable tool as communities within our service area and throughout the state consider converting from septic tanks to community sewer systems.”

The bill goes into effect Jan. 1, 2012.

CONTACT: Meda Freeman 707-591-6925   Meda.Freeman@asm.ca.gov

01 Dec 2011
Company News Permalink

Electro Scan Inc. Adopts Cloud to Run Back Office

December 1, 2011

Electro Scan Inc. Selects Cloud Vendors Intacct, Rackspace, and Salesforce.com for Back Office

SACRAMENTO, Calif., December 1, 2011 – Chuck Hansen announced today the selection of a suite of cloud computing Software as a Service (SaaS) hosted solutions to support his new company’s back office data processing.

Electro Scan Inc., a leader in Software as a Service (SaaS) computing platforms for the public sector, made it a high priority to equip its business on similar platforms as those offered by the company.  “SaaS represents the new standard to deliver and support critical IT applications for the public sector, and we wanted to adopt the applications that that were on par with those that we are deploying,” stated Chuck Hansen, Chairman & CEO of Electro Scan Inc.  “Vendors that rely on client/server or ASP applications for their back office tend to deliver the same legacy-styled applications for their customers. We don’t.”

Cloud-based solutions providers, selected by the company include Intacct Corporation for financials, Rackspace for hosting, and Salesforce.com for sales administration.

About Intacct Corporation
Intacct, a leading provider of cloud financial management and accounting software, and is the preferred financial applications for AICPA business solutions. The Intacct accounting system is designed for companies that need more than an entry-level PC-based accounting package but want an alternative to complex, IT-intensive client/server solutions. In addition to its core accounting functionality, the Intacct accounting system also includes Intacct Audit, co-developed with Deloitte & Touche. Intacct got a hold of $15M in venture money in April of 2008.   Intacct applications are used by thousands of organizations from start-ups to public companies and are designed to improve company performance and make finance more productive.  In 2010, the company was recipient of Lead 411 “Hottest Silicon Valley Companies” award. Founded in 1999, Intacct is headquartered in San Jose, California, with over 30,000 users across more than 3,000 customers, including Electro Scan Inc. Intacct’s applications provides a comprehensive accounting solutions, including sales invoice integration with Salesforce.com, sales tax management, and revenue recognition accounting.

About Rackspace Hosting
Rackspace Hosting is the service leader in cloud computing.  Headquartered in San Antonio, Texas, the company was founded in 1998. Founder Graham Weston and a partner provided the original capital after a business idea was pitched by three Trinity University students. Today the company is traded on the New York Stock Exchange (Symbol: RAX) and is positioned in the Leaders Quadrant by Gartner Inc. in the “2010 Magic Quadrant for Cloud Infrastructure as a Service and Web Hosting.”  Serving more than 161,000 customers, including Electro Scan Inc., Rackspace will supply 24×7 access to the company’s cloud computing-based Software as a Service (SaaS) hosted solution for Plumbers and Sewer Utilities.

About Salesforce.com
Salesforce.com is a global enterprise software company, best known for its Customer Relationship Management (CRM) product.  Through acquisitions, Salesforce.com has expanded into the “social enterprise arena,” and ranked number 52 in Fortune’s 100 Best Companies to Work For in 2011.  Listed on the New York Stock Exchange, under the stock symbol CRM.  Salesforce.com is an enterprise cloud computing company that is leading the shift to the social enterprise.  Social enterprises leverage social, mobile and open cloud technologies to put customers at the heart of their business. Based on salesforce.com’s real-time, multi-tenant architecture, the company’s platform and application services Founded in 1999, its annual conference, Dreamforce, draws 45,000 registrants and 300 exhibitors from 60+ countries.  Headquartered in San Francisco, California, Salesforce.com has over 104,000 customers, including Electro Scan Inc. Salesforce products will support the company’s worldwide sales administration functions, territory management, sales quotes, and support management, and seamless integration to the Intacct financial accounting solution.

About Electro Scan Inc.
Electro Scan Inc., incorporated in the State of Delaware, is headquartered in Sacramento, California, was founded October 31 2011, through purchase of certain assets from Leak Busters, Inc. and PDQ Scan, Inc., including all electro scanning intellectual property, sewer data management, and reporting solutions.  For more information visit https://www.electroscan.com.

Contact
Janine Mullinix
Tel: 916-779-0660
Email: info@electroscan.com
 

18 Nov 2011
Company News Permalink

Chuck Hansen Buys Majority Stake in Electro Scan Inc.

November 18, 2011

Chuck Hansen Acquires Majority Stake in Electro Scan Inc.; Purchases Assets of Leak Busters, Inc. and PDQ Scan, Inc.

Company to Provide Next Generation Leak Detection Technology Challenging Legacy CCTV Cameras to Evaluate Sewer Mains, Laterals, and Service Connections

SACRAMENTO, Calif., November 18, 2011– Chuck Hansen announced today that he has acquired a majority stake in Electro Scan Inc., leaders in providing next generation technologies for detecting leaks in sewer mains, laterals, and service connections.  Mr. Hansen’s investment in Electro Scan Inc. represents his first transaction since starting his public sector information technology business in August 2011, and will operate the business as a standalone company, headquartered in Sacramento, California.

“I’m delighted to be a part of a company that will forever change the way that sewer mains and laterals are inspected and evaluated,” stated Chuck Hansen, Chairman and CEO of Electro Scan Inc. “Utilities and contractors may question ever having to purchase another closed circuit television (CCTV) camera, again.”

In contrast to traditional CCTV, electro scan automatically measures the passage of electricity through the inside wall of a pipe.  Instead of relying on operators to visually interpret and catalog pipe defects, electro scan technology locates, identifies, and scientifically quantifies the severity of cracks, fractures, defective joints, and faulty service connections to determine the water tightness of a pipe and its associated structures.

Electro Scan Establishes New Standard for Condition Assessment
Sewer electro-scanning automatically identifies and measures the amount of electric current that flows through cracks in a pipe.  With sewer mains or laterals filled with water, Electro Scan’s probe identifies defect locations with pinpoint accuracy, showing specific defect locations by their electric amplitude.  Results are transmitted from Elector Scan’s probe to an operator’s Smartphone or Apple iPhone via Bluetooth®, where the company’s proprietary software and data algorithms display results along the pipe.  Reports can either be printed to a ruggedized printer or automatically transmitted to Electro Scan’s cloud-based server.  Side-by-side comparison to existing CCTV inspections, uploaded from customer’s existing asset management system to our web-based Critical Sewers System, is also available.

Selected utilities that have utilized the electro-scanning process, include American Water Works, Inc., Louisville and Jefferson County Metropolitan Sewer District, City of Pasadena (Texas), City of Redding (California), and Sacramento County.

“CCTV cameras offer terrific high resolution video logs of sewer pipes,” stated Rob Harris, chief scientist of Electro Scan Inc. “Cameras can pan, tilt, zoom, and even deploy smaller cameras to crawl up sewer laterals.  What they cannot do, is tell you where a leak is located and its severity.”  A member of the American Society for Testing and Materials (ASTM), Underground Utilities Standards Committee, Mr. Harris was instrumental in establishing ASTM Standard F2550-06 “Standard Practice for Locating Leaks in Sewer Pipes Using Electro-Scan — the Variation of Electric Current Flow through the Pipe Wall www.astm.org.

About Electro Scan Inc.
Electro Scan Inc., was incorporated in the State of Delaware on October 31, 2011 for the purpose of accquiing certain assets from Leak Busters, Inc. and PDQ Scan, Inc., including all electro scanning intellectual property, sewer data management, and reporting solutions. Printed circuit board operations are currently located in Arizona, with product manufacturing facilities in South Carolina.

Electro Scan Inc. specializes in the design, manufacture, and support of proprietary electronics, and associated software, to identify and quantify the severity of cracks, fractures, defective joints, and faulty taps, in sewer pipes.  Plans to possible move their printed circuit board design and manufacturing operations from Arizona or the manufacturing operations in South Carolina, were not disclosed.

About Chuck Hansen
Mr. Hansen is a pioneer in public sector information technology and the former Chairman and Chief Executive Officer of Hansen Information Technologies, a company he found with his father and brother in 1983 and sold in 2007 to Infor Global.  Chuck was instrumental in delivering and deploying the first citywide automated solution for the City of Houston’s SSES Project in 1989 and played a leadership role benchmarking key performance indicators (KPIs) for Sewer Work Orders, Activity-Based Costing, Manhole Inspection, Smoke Testing, Dye Flood Testing, and CCTV Inspections.  For more information visit http://www.chuckhansen.co and follow Chuck on Facebook.

Contact
Janine Mullinix Email: info@electroscan.com
Local: 916-779-0660
Email: info@electroscan.com
Copyright© 2011. All other company names, trademarks, or trade names are properties of their respective owners. All Rights Reserved.

 

 

14 Nov 2011
In The Press Permalink

Roto-Rooter Accused of Billing for Unneeded Work

November 14, 2011

Roto-Rooter accused of billing for unneeded work

Article by: NICOLE NORFLEET | Updated: November 14, 2011 – 9:34 PM

Suit comes amid scrutiny of plumbing giant’s practices.

A Crystal woman and a Minneapolis couple are suing plumbing giant Roto-Rooter, accusing the company of pressuring customers into paying for unnecessary repairs.

In the complaint, filed Monday in Hennepin County, the plaintiffs ask to be reimbursed for repair work that they argue was not needed, and for Roto-Rooter to stop its alleged “deceptive and misleading practices.”

Said Roto-Rooter spokesman Paul Omodt: “We do not comment on pending litigation other than through official statements filed as part of the legal process,” he said. “We do, however, reiterate our ongoing commitment to address any service inquiries customers may have.”

The company and its sales practices have come under scrutiny in Minneapolis, first by licensing officials and now police fraud investigators.

Last month, police searched the Plymouth office of Roto-Rooter and seized DVDs of drain lines, customer files, a personnel file of a Roto-Rooter employee and correspondence between the company and a subcontractor.

The company has said it stands by its work.

Plaintiff Dawn Mills, of Crystal, called Roto-Rooter last December after her sewer backed up, leaving her without water service. According to the lawsuit, a company representative said it couldn’t completely unclog her line. After a camera was used to assess the problem, she was told her line was broken and would need $8,750 worth of repairs.

When a city inspector reviewed the repair, Mills was told that she overpaid. After watching the DVD of the camera inspection, another professional drain cleaner was unable to find any indication that the pipe was broken, the lawsuit said.

In February, plaintiff LuAnn Cosgrove of Minneapolis had a similar experience, according to the complaint. She and her husband, Michael, were charged $5,235 for a repair that a city inspector later said wasn’t needed, the suit said.

“The case is about getting people the money back that they paid for repairs that were unnecessary,” said Gordon Rudd, the attorney representing the homeowners.

Plaintiffs have asked for class-action status for the suit.

Nicole Norfleet • 612-673-4495
http://www.startribune.com/local/minneapolis/133851313.html

01 Oct 2011
In The Press Permalink

Ofwat Transfers UK Sewer Laterals to Water Cos.

October 1, 2011

Ofwat Transfers Ownership of All Public & Private Sewer Laterals to Water Companies of England & Wales

SACRAMENTO, Calif., October 1, 2011 – Beginning today ownership of all UK private sewers and lateral drains were transferred to water companies pursuant to the Water Services Regulation Authority (Ofwat) 2011 Water Industry Regulations, Schemes for Adoption of Private Sewers, which came into effect on July 1, 2011.  Ofwat is the body responsible for economic regulation of the privatized water and sewerage industry in England and Wales, and for setting limits on the prices charged for water and sewerage services, taking into account proposed capital investment schemes (such as building new wastewater treatment works) and expected operational efficiency gains.

The transfer of ownership of private laterals, effective October, 1 2011, represents the government’s aim to improve the sewerage system in England and Wales. The regulations seek to address two concerns: first, the perceived unfairness to private sewer owners who pay sewerage charges, but yet are also responsible, often without realising, for the maintenance of private sewers, and second, the financial burden and uncertainty or inability to maintain private pipelines underneath or below third-party owned property.

The regulations apply to all private sewers and lateral drains which drain to the public sewerage system of England and Wales.

Sewers are those which drain sanitary effluent and surface water from more than one building, or buildings within the same service area or curtilage. A lateral drain is that part of a drain which takes sanitary effluent and surface water away from an individual property and which lies outside the curtilage of that property.

From today, all private sewers and lateral drains which drain to a public sewer before July 1, 2011 will be transferred to the regulated sewerage companies. Water companies now own and are responsible for sewers and lateral drains, including those which may not been constructed or maintained to an adoptable standard. The sewerage companies will have no bond or other security to call upon to pay the costs of bringing the sewers and drains up to standard.

It is considered that the change in responsibility will impact on about half of all properties in England and Wales. There are also concerns that water companies will increase bills in response as the transfer of private sewers into company ownership will see the companies take on new responsibilities and costs. There is a fear that there will be an increase in customers’ bills to pay for this extra work.

Harbinder Babra, a spokeswoman from Ofwat is reported as stating that “from 1 October, the companies will have work to assess the state of the sewers. We will not allow any [price] increases until companies are able to provide us with robust evidence on the cost impacts. We will then challenge and scrutinize a company’s proposal to ensure customers get a fair deal and bill increases are kept as low as possible for customers.”

However, Babra also stated that “Companies need to have robust evidence if they are seeking bill increases. They need to plan and understand both the costs and the impact that any change to bills will have on their customers.”

According to information on the website for Consumer Council for Water, the exact effect on bills will be uncertain until the sewerage companies have assessed how many private sewers and lateral drains they are taking on. They will then be able to calculate exact costs and inform their customers of the increases that may be applied to bills.