Consideration and Approval of Contract:  Contract for Professional Services with Cavanaugh & Assoc., PA in the amount of $181,333 for a Nonrevenue Water Auditing Program.
 

1. Approve the Contract for Professional Services with Cavanaugh & Associates, PA in the amount of $181,333 for the City's Nonrevenue Water Auditing Program; and
2. Authorize the City Manager to execute the necessary documents.

The City received a grant of $136,000 from the Arizona Water Infrastructure Finance Authority (WIFA) to conduct a Nonrevenue Water Auditing Program. The Contract with Cavanaugh & Associates, PA (Cavanaugh) is for a total of $181,333 where the City will match the additional cost of the Contract over the $136,000 WIFA grant. 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.

Project Name: Nonrevenue Water Auditing Program
Total Project cost $181,333
Account Number Budgeted: 202-08-304-6390-0-4290
FY Budgeted Amount: $178,500 in 202-08-304-6390-0-4290 with budget authority from 202-08-304-1062-0-4290
Grant Funded: $136,000
Match: $42,500 in program 6390 and $2,833 in program 1062
Funding Source:  The City of Flagstaff Water Conservation Program will contribute $45,333 over the grant period to match the $136,000 from WIFA. The grant must be fully expended by June of 2026, and the funds will be disbursed during FY25, and FY26.

Flagstaff City Council signed the grant agreement to accept the funds for this project from WIFA on March 5, 2024.

None.

In 2021, the City of Flagstaff Water Conservation Program (WCP) funded Phase I of a five-phase Nonrevenue Water Management Program as specified in the American Water Works Association M36 Program. The Program scope was proposed to be completed in phases due to the unique standalone characteristics of each program element. Phase I completed an AWWA M36 Top-Down Water Audit with Level 1 Validation in 2022. This Contract with Cavanaugh will support phases II-IV through the WIFA Water Conservation Grant Program. Phase II will complete a Level 2 Validation of Water Balance with Uncertainty Analysis. Phase III is a Non-Revenue Water Economic Analysis. Phase IV establishes a Non-Revenue Water Program Design. And Phase V (not funded) will provide a plan for Non-Revenue Water Program Implementations.

The City procured these services with Cavanaugh through a sole source justification approved by the City's Purchasing Director, and the granting agency.

PBB Priorities and Objectives: 

• Deliver outstanding services to residents through a healthy, well-maintained infrastructure system
• Promote, protect, and enhance a healthy, sustainable environment and its natural resources
• Maintain the organization’s fiscal stability through strong financial policies and best practices

Regional Plan:

• Goal E&C.2. Reduce greenhouse gas emissions.
• Goal E&C.4. Integrate available science into policies governing the use and conservation of Flagstaff ’s natural 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.

Carbon Neutrality:

• Ensure all mitigation actions improve Flagstaff’s ability to adapt to the future. 
• Improve water infrastructure and expand water reuse. 
• Continue to support water conservation efforts across the Flagstaff community.

Housing:

• Prioritize Capital Improvement Projects that facilitate affordable housing.

Contributes to the 2020 Water Conservation Strategic Plan as well as the Water Resources Master Plan.