FOR: City Council and Rialto Utility Authority Meeting [February 27, 2024]
TO: Honorable Mayor and City Council
APPROVAL: David N. Carmany, City Manager
FROM: Stephen Dopoudja, P.E., Interim Utilities Manager
Toyasha Sebbag, Assistant to the City Manager
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Conduct Public Hearing as Required Under Proposition 218; 2) Approve Resolution No. 8189 Approving the Proposed Adjustments for Water and Wastewater Services as supported by the FG Solutions Financial Planning Analysis Report; and 3) Adopt RUA Resolution No. 08-28 Approving the Proposed Adjustments for Water and Wastewater Services as supported by the FG Solutions Financial Planning Analysis Report.
(ACTION) POWERPOINT
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BACKGROUND:
The City of Rialto operates a water and wastewater utility system. In California, rates for water and wastewater services must be designed to cover the costs reasonably borne in providing those services. This principle is often referred to as "cost-of-service" regulation. It means that utility rates should be set at a level that allows the utility to cover its expenses associated with providing water and wastewater services, including operation, maintenance, infrastructure investment, and any other relevant costs, while also ensuring that rates are fair and reasonable for customers. This report concerns the setting of utility rates to ensure compliance with these principles.
California Proposition 218, also known as the "Right to Vote on Taxes Act," (Prop 218) was approved by voters in 1996. It amended the California Constitution to establish requirements for local governments when imposing or increasing taxes, assessments, and fees. The proposition establishes procedures for local governments to follow when imposing or increasing fees for services.
In 2012, the City Council/Rialto Utility Authority (RUA) adopted resolutions approving a concession agreement with Rialto Water Services (RWS). The concession agreement outsourc...
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