Agenda Item No: P.2
AGENDA REPORT
DATE: June 17, 2025
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2025-110 PW Water Enterprise Capital Budget Adjustment
Authorizing an Update to the Fiscal Year 2024-2025 Water Enterprise Capital Budget for the Distribution Systems Metering and Monitoring Project and the Water Service Replacement Program Project
Funding Source: $1,700,000; Water Enterprise Fund
Contact: Michael J. Hether, (707) 428-7493
RECOMMENDED ACTION
Adopt resolution.
STATEMENT OF ISSUE
City staff are seeking an update to the fiscal year (FY) 2024-2025 Water Enterprise Capital Fund Budget for two Capital Improvement Projects: Water Service Replacement Program Project (CPW090071) and Distribution Systems Metering and Monitoring Project (CPW090058).
DISCUSSION
Fairfield Municipal Utilities serves over 30,000 customers who consume water from its system.
To ensure the continued reliable operation of the water system, various capital maintenance projects must occur over time. Recently, two capital maintenance projects were the replacement of water meter registers and the installation of cathodic protection.
Accurate water metering equipment is critical for measuring customer consumption and ensuring precise billing and revenue collection. A significant number of water meter registers had begun to fail due to age and other factors. To maintain the integrity of the billing process and support ongoing revenue collection, City staff are working to replace these failing registers throughout the system.
Implementing technologies to prevent or minimize breaks and failures of water service lines is a vital aspect of maintaining a reliable water system. In several areas of Fairfield, highly reactive soil conditions exist and lead to premature failure of underground utilities. The modern method to mitigate this issue is the installation of cathodic protection anodes , which redirect the corrosive reactions away from the pipes an d toward the anodes instead. To address this issue , City s taff ha ve installed a significant number of cathodic protection anodes in these high-risk areas to protect underground water service lines.
The expenses associated with replacing water meter registers and installing cathodic protection are consistent with the requirements for capital improvements . City s taff are seeking to reallocate the expenses related to the water meter equipment and cathodic protection to the Water Enterprise Capital Fund (Fund 462). Reallocation would require increases to the two Water Enterprise Capital Projects.
FINANCIAL IMPACT
The total budget adjustment for this FY 2024-2025 budget adjustment is $1,700,000, which will be allocated from the Water Enterprise Fund Balance (Fund 461) to the Water Enterprise Capital Fund ( Fund 462) . The distribution of the se funds to Fund 462 is as follows: $200,000 will be allocated to CPW090058, and $1,500,000 will be allocated to CPW090071.
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A
ALTERNATIVE ACTION
The City Council may delay approval of the adjustment so that the staff can address any council concerns.
COORDINATED WITH
Finance Department
STAFF CONTACT
Nigel Browne, Senior Management Analyst
(707) 437-5265
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution