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Sacramento Suburban Water District, which serves residents in Arden Arcade and North Highlands, is looking to purchase a well maintenance company, saying the move would save money in the long term.
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The district wants to purchase Rancho Cordova-based Kirby’s Pump and Mechanical for $4.1 million, according to a staff report. The deal would include a $2.4 million payment at closing, $750,000 after the first year and $850,000 after the second year.
The payback period, when projected savings would exceed the purchase price, is about three years and five months, including the cost of adding staff.
Sacramento Suburban Water District and the maintenance company entered into an exclusive agreement in 2023 to rehabilitate wells, which General Manager Dan York said has been valuable given the limited number of well maintenance companies in the region.
“A lot of them (well maintenance companies) spend so much time in the Central Valley with the farmers,” York said.
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Beyond well maintenance, the company performs concrete work, pipe fitting, plumbing and electrical work, according to the staff report. The six-person team, including the current owner, consists of three certified welders, two commercial drivers and a certified crane operator.
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If the deal is completed, Kirby’s Pump and Mechanical employees would become district employees.
The Rancho Cordova-based company would move to the water district’s Auburn Yard facility, according to the staff report. The site has space for a machine shop, storage, vehicles and office operations.
If the acquisition goes through, York said the new team would help other agencies during emergencies but would not pursue long-term projects for outside agencies.
“When you open the well up and start going down, you have no idea what you’re going to find,” York said. “You can be there for a week … two months, so we don’t want to tie them up for that long.”
A draft agreement is expected to go before the water district’s board Monday, according to York.
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