Consideration and Approval of Grant Agreement:  Water Conservation Grant Fund Agreement with Water Infrastructure Finance Authority

1. Approve the Grant Agreement with the Water Infrastructure Finance Authority (WIFA) Water Conservation Grant Program for the City's Nonrevenue Water Auditing Program for $136,000.00 (75% WIFA Share), with a minimum $45,500.00 (25% Non-Federal Share) match requirement; and
2. Direct the City Manager to execute the necessary documents.

This grant from the Water Infrastructure Finance Authority's (WIFA) Water Conservation Grant Fund will provide $136,000 in funding for Water Services to continue its Nonrevenue Water Auditing Program. Nonrevenue water auditing is a best practice of the American Water Works Association as a comprehensive analysis of a water provider's system to determine where water losses are occurring. The audit will result in a prioritized list of system improvements based on return on investment in water and/or production cost savings. Examples of losses include leaks in the distribution system, metering errors, water theft, and so on. Auditing the water system in this fashion is an essential component of water system best management practices and can contribute to water conservation and utility efficiency goals. 

This grant is a 75/25 match. The City of Flagstaff Water Conservation Program will contribute $45,500 over the grant period to match the $136,000 from WIFA. The grant must be fully expended by December of 2026, and the funds will be disbursed during FY2023-24, FY2024-25, and FY2025-26. While this grant wasn't budgeted for in FY2023-24, there is budget appropriation to cover this grant and this grant will be budgeted for in FY2024-25 and FY2025-26.

Priority Based Budget Key Community Priorities and Objectives

• Maintain the organization’s fiscal stability through strong financial policies and best practices
• Promote, protect, and enhance a healthy, sustainable environment and its natural resources

Carbon Neutrality Plan

• Improve water infrastructure and expand water reuse.
• Continue to support water conservation efforts across the Flagstaff community.
• Improve the resilience of public infrastructure and City facilities.

Regional Plan

• Goal WR.2. Manage a coordinated system of water, wastewater, and reclaimed water utility service facilities and resources at the City level and identify funding to pay for new resources.
• Goal WR.3. Satisfy current and future human water demands and the needs of the natural environment through sustainable and renewable water resources and strategic conservation measures.

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