BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Receive an Informational Update on the Draft Fiscal Year 2025-2029 Water Utility and Watersheds Operations and Maintenance and Asset Renewal Plans.
End
RECOMMENDATION:
Recommendation
A. Receive an informational update on the Draft Fiscal Year 2025-2029 (FY25-29) Water Utility and Watersheds Operations & Maintenance and Asset Renewal Plans.
Body
SUMMARY:
The Five-Year Water Utility and Watersheds Operations & Maintenance and Asset Renewal Plans (Plans) identify and document the resources needed for operations and maintenance activities and asset replacements and rehabilitations for the next five fiscal years, 2025 to 2029.
The Plans forecast the resources needed for operator labor, energy and supplies, preventive and corrective maintenance, and engineering and environmental staff support. Additionally, the Plans forecast asset renewal projects that involve the replacement or rehabilitation of equipment or systems to extend their service life. These projects are typically budgeted and executed as small capital improvement projects.
The Plans are updated annually and cover a rolling five-year period. The Draft Plans were prepared using long-term forecast data as of December 2023. The FY25 budget requests will be evaluated throughout the budget and groundwater charge-setting processes through May 2024. The Plans will be finalized following the Board's adoption of Valley Water's final budget and groundwater production charges for FY25. The Draft Plans are included as Attachments 2 and 3.
Water Utility Summary
The Draft Five-Year Water Utility Operations & Maintenance and Asset Renewal Plan (Water Utility Plan) summarizes the funded and unfunded resources needed for Raw Water and Treated Water Operations Divisions, as shown in the figure below.
The Raw and Treated Water Operations Divisions have identified funded resource needs of approximately $573.8 Million, and an additional unfunded need of approximately ...
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