FOR: City Council and Rialto Utility Authority Meeting July 23, 2024
TO: Honorable Mayor and City Council
APPROVAL: G. Michael Milhiser, Interim City Manager
FROM: Toyasha Sebbag, Assistant to the City Manager
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Request the City Council and Rialto Utility Authority Board to Continue a Public Hearing, as Required Under Proposition 218, to Consider and Approve Resolution No. 8254 and RUA Resolution No. 08-37 Approving the Proposed Adjustments for Water and Wastewater Services as supported by the May 2024 FG Solutions Financial Planning Analysis Report.
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RECOMMENDATION:
Request the City Council and Rialto Utility Authority Board to Conduct a Public Hearing, as Required Under Proposition 218, to Consider and Approve Resolution No. 8254 and RUA Resolution No. 08-37 Approving the Proposed Adjustments for Water and Wastewater Services as supported by the May 2024 FG Solutions Financial Planning Analysis Report.
BACKGROUND:
In 2012, the City Council/Rialto Utility Authority (RUA) adopted resolutions approving a Concession Agreement with Rialto Water Services (RWS). The Concession Agreement outsourced the operations and maintenance of the City's Water and Wastewater enterprise to a private contractor for a term of thirty years.
Per the Concession Agreement, the City maintains ownership of all assets and the authority and responsibility for setting utility rates subject to contractual obligations and financial performance standards.
In 2012, the City adopted a five-year rate schedule through the Proposition 218 (Prop. 218) process. From the rate schedule developed in 2012, the water and wastewater rates were last adjusted on January 1, 2018. The multi-year rate adjustments approved in 2012 allowed for the financing and implementation of $41 million in improvements and repairs that improved system reliability and efficiencies for both the water and wastewater systems.
ANALYSIS/DISCUSSION
On April 11, 2023, the City Council...
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