By: @Kristin Withrow, Senior Communications Specialist, CSDA
When the Sacramento Suburban Water District found itself confronting a shrinking pool of specialized contractors and a growing backlog of maintenance work threatening water operations, the district found a solution by moving upstream into the well servicing supply chain.
As of this writing, the district is in the process of purchasing the assets of a local well-maintenance company and bringing its employees on staff — a move expected to pay for itself within three years while strengthening the district’s ability to provide reliable water service.
Sacramento Suburban Water District serves roughly 200,000 people across about 37 square miles in the Sacramento region. The district has a robust conjunctive use program utilizing surface water entitlements, when available. However, groundwater is the district’s main water supply. The district operates 82 wells, some producing up to 3,500 gallons per minute. That scale creates a constant need for specialized experience to keep pumps online and maintain pressure in the system
As with many things, the challenge was amplified by the pandemic. In late 2021, the district had 25 wells offline at the same time. A side effect of the pandemic was the tightening of contractor availability as companies closed or became overrun with demand
“There were only three well pump maintenance companies in the region with more than 20 water districts in the Sacramento region,” York explained. “The soonest we could even get one of our wells looked at was about six months.”
For a district heading into peak summer demand, that delay carried real risk. In the service area’s history, there is a fearful memory from 1999 when a widespread power outage across the west coast resulted in water availability coming offline. That nightmare scenario is something the board of directors is keenly attuned to preventing from ever happening again.
The critical situation prompted staff to explore ways to find more reliable well service alternatives. A district superintendent suggested approaching Kirby Pump & Mechanical, a small regional well-maintenance company, with a five-year exclusive service agreement that included an option to purchase the company’s assets after the first year. It turned out the company owner, J Hannum, was also ready to transform his post-pandemic demanding travel schedule for a stable space to utilize his experience and land his staff in a new ‘home.’
The results were immediate. Hannum and his team, now contracting exclusively for the district, began prioritizing the backlog of well maintenance, tackling the most urgent repairs first. Within the first year, ten wells had been brought back online, allowing the district to meet peak summer demand
The arrangement revealed more welcome efficiencies
Originally hired for specialized “down-hole” pump work, the company’s team proved capable of handling nearly every aspect of well site maintenance — from valves to control systems. That eliminated the need for multiple outside contractors such as electricians and welders
“They do everything related to a well site — the valves, SCADA system, electrical, everything,” York said. “And now we’ve been able to move into proactive maintenance rather than solely reactive maintenance.”
After evaluating labor costs, employee benefits and equipment valuation, the district determined the investment in the well company’s assets, including converting their entire team into district staff, would reach a break-even point in just three years compared with continued contracting
Under the plan now moving forward, the district will purchase the company’s equipment and assets while hiring Hannum and his original employees as district staff. Hannum will add his experience to the district as a superintendent overseeing well maintenance operations
“Historically KPM has provided specialized maintenance services on many of SSWD’s 80 wells. As competing demand for their services increased, staff suggested purchasing KPM to ensure their availability,” said SSWD Board President Craig Locke. “Bringing KPM in house brings certainty that the district’s wells will be well maintained and consistency for KPM’s employees. It is a true win – win situation.”
Sacramento Suburban Water District’s approach appears to be unique among California water agencies. While some cities or counties operate general maintenance crews, the district had not encountered another public agency that had acquired a private groundwater well-maintenance operation
In some ways, the idea emerged from necessity. But it also reflects a broader lesson for public agencies managing critical infrastructure: when traditional procurement models stop working, innovation sometimes means rethinking the structure entirely
For Sacramento Suburban Water District, that shift may not only stabilize operations — it also creates a new model for maintaining the infrastructure to keep water flowing, 24/7.
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