Title
Deferred Maintenance Update and Fiscal Year 2024-25 Year-End Financial Results
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FileID
File ID: 2025-00423
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Location
Location: Citywide
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Recommendation
Recommendation: Review and comment.
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Contact
Contact: Dalia Fadl, Director of Utilities, (916) 808-3765, dfadl@cityofsacramento.org; Sherill Huun, Engineering Manager, (916) 808-1455, shuun@cityofsacramento.org; Jordan Bird, Administrative Analyst, (916) 808-1778, jbird@cityofsacramento.org; Department of Utilities
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Presenter
Presenter: Sherill Huun, Engineering Manager, (916) 808-1455, shuun@cityofsacramento.org; Kelly Sherfey, Supervising Financial Analyst, (916) 808-1466, ksherfey@cityofsacramento.org; Department of Utilities
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Attachments
Attachments:
1-Description/Analysis
2-Exhibit 1 - FY25 Deferred Asset Investment Expenditures
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Description/Analysis
IssueDetail
Issue Detail: Staff will present overviews of the Fiscal Year (FY) 2024-25 financial results and of the Department of Utilities’ deferred maintenance needs for infrastructure investment and the progress made during the year. The deferred asset investment backlog represents vital repairs and upgrades that have been postponed over time, and it continues to grow as the demands on our systems increase and existing infrastructure ages. Addressing this issue requires a concerted effort to find the necessary funding and prioritize infrastructure investments.
Exhibit 1, FY25 Deferred Asset Investment Expenditures, provides detailed project lists of the FY 2024-25 expenditures for deferred maintenance for system rehabilitation and replacement (R&R) to correct deficiencies and failures including new infrastructure addressing capacity deficiencies, changing industry standards and new regulatory requirements.
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PolicyConsiderations
Policy Considerations: Not applicable.
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EconomicImpacts
Economic Impacts: Not applicable.
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EnvironmentalConsiderations
Environmental Considerations: California Environmental Quality Act (CEQA): This action is not a project that is subject to CEQA because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines §15378(b)(5)).
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Sustainability
Sustainability: Not applicable.
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Commission/Committee Action
Commission/Committee Action: Not applicable.
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RationaleforRecommendation
Rationale for Recommendation: The presentation addresses the progress that DOU is making toward achieving infrastructure maintenance goals. It contributes to DOU’s ongoing mission of informing the Utilities Rate Advisory Commission (URAC), which supports the commission’s duty to make future utility rate recommendations to the City Council.
FinancialConsiderations
Financial Considerations: Not applicable.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
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