General manager outlines capital priorities: generators, Blacker Canal, insurance and pond treatment

General Manager provided a multi-part operations and capital update to the Reclamation District 900 board on April 16, reporting on year-to-date finances, grant and IT consultant activity, insurance-cost increases, planned pond treatment, pump-station backup-generator needs, and uncertainty over federal mitigation funding for the Blacker Canal project.

On finances the general manager said year-to-date revenue was about $3,900,000 and expenditures about $1,300,000, with approximately $12,900,000 held in the district treasury through Yolo County as of February 2025. He reported that an IT consultant engaged under the district's grant program had begun on-site work and would be helping district systems and recommendations over an anticipated three-year engagement.

On insurance, the general manager said the district's policy renewed April 1 with a roughly 14% premium increase to $137,000, driven by updated replacement valuations for pump stations and new coverage items including cybersecurity insurance. He also said the district carries roughly $18 million in pump-station coverage and that replacement-cost estimates have risen in recent months.

The board discussed pond maintenance: the district plans to treat a duckweed infestation but cannot apply the chemical until groundwater levels and pond conditions stabilize because treatment requires the chemical to remain in the pond for 45 days. The general manager said pumps were recently turned off and groundwater had risen by several feet, so pumps must be restarted and water stabilized before treatment can proceed.

On backup power, the general manager described priorities for two critical pump stations: a permanent generator for the Causeway Pump Station and a portable/trailer-mounted generator for the Racetrack pump station. Cost estimates presented in the meeting ranged from about $500,000 to $1 million for a permanent generator and about $250,000 for a generator sized for Racetrack; the board discussed California air-quality and permitting costs that increase installation prices. The district currently has an older trailer-mounted generator deemed too small for the largest pump station but usable for smaller stations in emergencies; the general manager said the district pays fees for emergency-use of that unit to the California Air Resources Board.

Regarding federal mitigation grants, the general manager reported Cal OES informed districts that many BRIC and related hazard-mitigation funding streams were temporarily paused and that FEMA coordination remained uncertain; as a result the district may need to decide whether to award construction contracts without guaranteed reimbursement. On Blacker Canal, staff have submitted updated materials to Cal OES for FEMA consideration; engineers are finalizing a less-expensive design and the district may proceed if it can cover costs without FEMA reimbursement, though staff said they prefer FEMA approval before awarding work.

The general manager also reported the Army Corps of Engineers will begin a levee inspection April 29 focused on the district's southern cross levees and that the Yolo Bypass East levee north project is advancing with a new pump station and generator but with equipment delays. Trustees asked about potential federal grant opportunities and questioned insurance carriage; the general manager said the district obtains insurance through an industry broker and that it may be time to solicit price comparisons after the premium increase.

No formal board action was taken on the updates; trustees thanked staff and asked staff to return with cost estimates and options for generator purchases, Blacker Canal timing, and grant-application status.