Water-meter analysis plan tabled by Fort Smith Board

The Fort Smith Board of Directors on Tuesday (July 22) tabled a measure to move forward on the first phase of what could be a multi-million dollar effort to eventually replace all city water meters.

Several directors pushed back on the need to hire Framingham, Mass.-based Ameresco to conduct an “investment grade audit” to analyze the city’s water meter information, meter consumption, and sizes and types of meters. The first phase, according to Water Utilities Director Lance McAvoy, would cost the city $125,000.

The board on June 24 agreed to allow city staff to work with Ameresco to develop options to modernize the city’s water meter system, which could help the city reduce an estimated non revenue water loss of around 35%.

Ameresco executive Chad Nobles said during the June 24 meeting the cost to replace meters could range between $500 and $1,200 a meter, which would be a total cost range in Fort Smith between $20 million and $48 million. Fort Smith had 39,372 water meters as of late June.

Director Christina Catsavis said Tuesday she is concerned that the company auditing the system will benefit if the city decides to install all new meters.

“To me, that’s more like a sales pitch, that’s not a true audit. It’s like if you hire someone to come and, you know, a roofer to come and audit your roof, I bet he’s going to find it needs repair,” she said.

Director Kevin Settle said he would rather use the $125,000 to buy new, modern meters, use them in new developments, and use the new meters as a test for the larger system. Settle also said he would also like to see a plan to add 3,000 to 4,000 meters a year until all meters are replaced.

“I appreciate this (effort to replace meters), but I think we are going the wrong way on this,” Settle said,

McAvoy and Acting City Administrator Jeff Dingman said the city needs a complete systemwide analysis that only a professional services firm can provide. For example, McAvoy noted that in 2024 the city had to write off more than $1 million in leakage adjustments. In response to questioning from Director Lee Kemp, McAvoy said he is 99% confident a complete audit will result in a modern meter system that could reduce errors, reduce losses, raise revenue and help avoid or delay future water rate increases.

Chad Nobles, an executive with Ameresco, said the company will not share in any revenue gained from using more accurate meters, and the company does not sell meters, so it will not benefit from the city buying new meters. He said Ameresco will benefit only from the construction related to installing meters, meter boxes, and ancillary equipment.

Nobles also said Ameresco sends water meter data to an independent “third-party lab” to help provide analysis the city will use to determine next steps. Nobles suggested one option for a next step could include a smaller pilot program. He also said Ameresco sees Fort Smith as being a project that will produce a big positive impact because so many of the meters in use are old and mechanical.

Settle was not convinced and moved that the issue be tabled until the second regular meeting in August. For that meeting, Settle asked McAvoy and Nobles to provide a “one-pager” that best summarizes the process and the benefits of new meters.

Voting to table the water meter plan was Directors Christina Catsavis, George Catsavis, Neal Martin, and Settle. Voting against tabling the measure were Directors André Good, Kemp, and Jarred Rego.