• The district approved the $4.1 million acquisition of Kirby's Pump and Mechanical (KPM), a Rancho Cordova-based groundwater pump-service contractor.
• The purchase followed several years of collaboration, during which KPM helped the utility restore pumping capacity, rehabilitate aging wells and make improvements to its groundwater infrastructure.

According to SSWD, the contractor's work restored approximately 100,000 gallons per minute (gpm) of pumping capacity throughout the district's system and included the rehabilitation of 19 wells. Those results, combined with an independent financial analysis, convinced district officials that purchasing the business could make more sense than continuing to pay for its services under a long-term contract.

The acquisition also raises an interesting question for the groundwater industry: As experienced pump technicians become harder to find, could specialized contracting businesses become attractive acquisition targets for the utilities they serve?

A Working Relationship That Started in 2023

SSWD's relationship with Kirby's Pump and Mechanical began in 2023, when the district signed an exclusive five-year agreement with the contractor to maintain and repair more than 70 groundwater wells. The arrangement gave the utility reliable access to an experienced crew for everything from routine maintenance to major well rehabilitation projects.

Over the next three years, KPM handled pump repairs, motor replacements, electrical upgrades and well rehabilitation. According to the district, the work helped restore approximately 100,000 gpm of pumping capacity across its system, improving the performance of existing wells without increasing permitted groundwater withdrawals.

As the partnership continued, district officials began considering whether purchasing KPM would make more sense than continuing the contract. The company already knew the utility's infrastructure and had the employees, equipment and experience needed to maintain it. Rather than build an in-house operation from scratch, SSWD decided to acquire the business.

Why Buy a Contractor Instead of Hiring One?

Maintaining more than 70 groundwater wells isn't cheap, and repairs aren't always predictable. 

Pumps wear out, motors break down and older wells sometimes need major work to keep producing enough water. Fixing those problems requires experienced technicians and specialized equipment, which is why many utilities rely on outside contractors.

The downside is that contractors have other customers, too. When a well breaks down, a utility might have to wait for a crew to become available. By purchasing KPM, SSWD will have its own team ready to handle repairs and maintenance, including workers who already know the district's wells and equipment.

The purchase could also save money. According to the district, an independent analysis found that the acquisition could pay for itself in less than three and a half years and save roughly $7 million over the next decade compared with continuing to hire KPM as an outside contractor.

Those savings aren't guaranteed, but the district believes having its own maintenance crew will be more affordable in the long run. It also gives SSWD more control over when and how repairs get done, rather than depending on a contractor's schedule.

What Happens to Kirby's Pump and Mechanical?

The acquisition means a significant change for Kirby's Pump and Mechanical, which had operated as an independent contractor before becoming part of the district's operations.

According to reporting by The Sacramento Bee, the $4.1 million purchase agreement included payments spread over several years, beginning with approximately $2.4 million at closing. The company had a six-person team, including its owner, with experience extending beyond groundwater pump maintenance.

Its employees brought a range of skills to the business, including welding, crane operation, commercial driving, pipe fitting, plumbing, concrete work and electrical repairs. Those capabilities are useful for more than pulling and replacing well pumps. They also allow crews to handle some of the related mechanical and infrastructure work that comes with operating a municipal water system.

Under the acquisition plan, KPM employees would become district employees, with the company's operations moving to SSWD's Auburn Yard facility. The location provides space for equipment, vehicles, storage and workshop activities, allowing the district to incorporate the contractor's existing resources into its maintenance operations.

The utility has also indicated that the team could assist neighboring water agencies during emergencies, although its primary responsibility would remain maintaining SSWD's infrastructure. The district does not intend to operate KPM as a separate contracting business serving outside customers on a long-term basis.

For the company's former owners and employees, the purchase marks a shift from operating an independent service business to working directly within a public utility. For SSWD, it means gaining an established maintenance team without having to recruit and train an entirely new workforce.

What the Acquisition Could Mean for the Industry

SSWD's purchase of KPM highlights the value of experienced workers in an industry where specialized skills aren't always easy to find. Maintaining groundwater wells requires trained technicians who can handle everything from pump repairs and electrical problems to major well rehabilitation projects.

Still, buying a contractor won't make sense for every utility. The upfront costs can be substantial, and bringing maintenance in-house means taking responsibility for employees, equipment and ongoing operating expenses. SSWD had an advantage because it had already worked closely with KPM for several years and understood what the company could offer.

The deal also shows how valuable an established pump-service business can become, particularly when it has experienced employees, specialized equipment and a strong track record.

Whether other utilities follow a similar path remains to be seen. For SSWD, the purchase is expected to reduce long-term costs while giving the district more control over maintaining its groundwater system.