Item Number: 19
City Council / Board of Directors
Written Communications
Meeting of: April 7, 2026
Submitted By:
Doug Mathews, Director of Public Works and Water
Subject:
Amendment No. 1 to the Consultant/Professional Services Provider Agreement with Utilis, Inc. DBA Asterra for Leak Detection Analysis
Recommendation:
That the Honorable Victorville Water District Board of Directors (Board) approve Amendment No. 1 to the Consultant/Professional Services Provider Agreement with Utilis, Inc. DBA Asterra, Project ESC25-070.
Fiscal Impact:
Acting in accordance with the staff recommendation will result in a fiscal impact of $172,615. No additional appropriation is required. Funds have been budgeted in the following account codes as part of the FY25/26 annual budget:
Account Description Account Code Amount
Water Efficiency Leak
Detection Software
4100525 – 52300 – 74652 $84,000
Field Services Leak
Detection Software
4100535 – 52300 – 74652 $84,000
TOTAL $168,000
The contract costs are shared between the Field Services and Water Efficiency divisions as both utilize the leak detection software for their operations. A total of $168,000 has been allocated for Fiscal Year 2025–2026, which will cover expenses through the end of the current fiscal year. Beginning July 1, 2026, an additional $174,000 will be available upon approval of the new budget.
Strategic Plan Goal:
This item aligns with Goal E: Invest in Infrastructure. By investing in a Leak Detection Analysis Service, the District can proactively identify and address leaks within the water 4 6
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distribution system. Early detection helps reduce water loss, prevent costly repairs, and support more efficient system maintenance. This investment helps ensure reliable water service and supports the District’s commitment to providing a healthy and livable community for all residents.
Background:
On January 21, 2025, the Board approved a Consultant/Professional Services Provider Standard Agreement with Utilis, Inc., doing business as Asterra, to perform leak detection analysis in an amount not to exceed $166,615. At that time, the Board also determined that the services provided by the company were proprietary in nature, thereby meeting the requirements for a sole source vendor in accordance with VMC 2.28.100(b)(2).
As part of its ongoing water loss management efforts, the District is required by the State of California, through the State Water Resources Control Board (SWRCB), to annually submit a validated water loss audit in accordance with American Water Works Association (AWWA) standards, as established under California Water Code Section 10608.34. This audit provides a comprehensive assessment of water losses within the distribution system, including losses resulting from leaks, main breaks, and metering inaccuracies.
By systematically quantifying and analyzing these losses, the audit serves as a critical tool for identifying inefficiencies, prioritizing infrastructure repair and replacement, and improving overall system performance. Compliance with this requirement ensures alignment with state mandates while supporting broader water conservation and sustainability objectives.
In response to increasing state-mandated water conservation requirements and the ongoing challenges associated with aging infrastructure, the District identified the need for more advanced and data-driven tools to effectively manage water loss. While proactive pipeline rehabilitation and targeted polyethylene (PE) service line replacement programs have significantly improved system reliability, these efforts alone are not sufficient to fully address non-surface and hard-to-detect leaks. Enhanced leak detection remains a critical component of the District’s overall strategy to reduce water loss, improve operational efficiency, and meet regulatory performance standards.
To complement these efforts, the District utilized the services of Asterra, a satellite-based leak detection provider operated by Utilis, Inc., during the prior year. These services combined advanced satellite radar imaging and proprietary algorithms with approximately 40 days of on-the-ground acoustic leak detection to validate and refine identified results.
Through biannual surveys of the District’s approximately 700-mile water distribution system, Asterra identified up to 125 Points of Interest (POIs) where leaks were likely to be present. These POIs were subsequently integrated into the District’s Geographic Information System (GIS), enabling clear visualization and prioritization of leak-prone areas.
The 2025 satellite-based leak detection effort for the Victorville service area included two flyovers covering the full system, followed by 40 days of field inspections conducted in May and August. During this effort, 141 leaks were confirmed across 51 miles of pipeline, 4 6
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yielding a performance rate of 3.5 leaks per day and 2.8 leaks per mile inspected. Of these, 48 leaks were identified on the utility side of the meter and directly contributed to non-revenue water loss, while 93 occurred on the customer side, including 9 that also contributed to system losses.
Overall, the program identified approximately 561 acre-feet (183 million gallons) of real water loss per year, equivalent to the annual water use of more than 1,600 households, with an estimated water loss rate of 500,688 gallons per day and a total yearly estimated value of $102,341. These results underscore the effectiveness of Asterra technology in supporting water conservation goals and advancing statewide efficiency and drought resilience objectives. The table below provides a summary of the estimated real water losses identified through this effort.
AWWA REAL WATER LOSS IDENTIFIED BY LEAK TYPE
Leak Type Number Flow Rate (GPM) Total Flow (GPM)
Main Pipe 11 17.6 194
Service Connection 14 9 125.7
Hydrant 12 1 12
Valve 1 2 2
Service Meter 10 1 10
Service Pipe 2 2 4
Other 7 N/A N/A
Total 57 347.7
This data-driven and field-verified approach allowed staff to strategically deploy resources to investigate high-probability leak locations, resulting in more efficient use of staff time and funding, improved leak detection and repair response times, and enhanced overall water loss management performance.
Discussion:
During the renewal process, a revised cost proposal was submitted to the District, reflecting an increase of $6,000 to the contract amount. The updated proposal totals $172,615 and includes two (2) satellite scans and analyses, 320 hours of subcontracted acoustic leak detection for the initial field deployment, four (4) user subscriptions for a one-year period, and preparation of a final program report summarizing the project results. This Amendment is also exercising Option 1 of 4, extending the term through January 23, 2027.
Water loss from pipelines and service lines contributes to non-revenue water, which directly impacts operational efficiency and creates a financial burden for the District and its ratepayers. Asterra supports the District’s efforts to reduce water loss by improving leak detection and accelerating repair timelines, helping to ensure compliance with state- mandated efficiency standards. In addition to identifying leaks within the District’s 4 6
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distribution system, the technology has also identified potential leaks on customer-side service lines. Early identification of these leaks allows customers to take timely corrective action, reducing unnecessary water consumption and avoiding prolonged, undetected increases in water bills.
By reducing system-wide losses, these services help mitigate avoidable production, treatment, and pumping costs associated with non-revenue water. Separately, identification of customer-side leaks provides a direct customer benefit by limiting excessive billed consumption and promoting responsible water use. Together, these outcomes support the District’s obligation under Proposition 218 to operate efficiently and align with AWWA best practices for water loss control. Continued utilization of these services strengthens the District’s ability to meet regulatory performance standards, improve operational efficiency, and provide measurable value to customers while promoting long-term water resource sustainability.
Therefore, staff recommends that the Board approve Amendment No. 1 (Attachment A) to the Consultant/Professional Services Provider Agreement with Utilis, Inc., operating as Asterra, increasing the total compensation by $6,000 for a revised not to exceed amount of $172,615, and exercising option 1 of 4, extending the term through January 23, 2027.
Staff is available for any questions the Board may have.
Prepared By:
Alejandra Garcia, Management Technician
Attachments: A. Amendment No. 1