For City Council Meeting May 27, 2025
TO: Honorable Mayor and City Council
FROM: Tanya Williams, City Manager
AUTHOR: John Rossi, Interim Utilities Director
Toyasha Sebbag, Assistant to the City Manager
Title
Request City Council/Rialto Utility Authority Board Approve a Final Construction Work Authorization (FCWA) With Rialto Water Services, as Operated by Veolia West Operating Services, Inc. for Phase I - City Well 3A Groundwater Treatment Facility for an Amount Not to Exceed $328,098.
(ACTION)
Body
RECOMMENDATION
Staff recommends that the City Council/Rialto Utility Authority Board approve a Final Construction Work Authorization (FCWA) with Rialto Water Services, as operated by Veolia West Operating Services, Inc. for Phase I - City Well 3A Groundwater Treatment Facility for an amount not to exceed $328,098.
BACKGROUND
On March 27, 2012, the City Council and Rialto Utility Authority (RUA) approved a Concession Agreement (CA) with Rialto Water Services, LP (RWS), operated by Veolia West Operating Services, Inc. (Veolia). This public-private partnership transferred the operation and maintenance of the City’s water and wastewater utilities to RWS. Under Article XII of the CA, RWS is responsible for implementing designated utility capital projects, including those identified by the Rialto Utility Authority (RUA).
ANALYSIS/DISCUSSION
City Well 3A, was drilled in 2010. The well was not equipped and placed into service due to arsenic concentrations approaching the Department of Drinking Water’s (DDW) maximum contaminant level. The tested levels of arsenic in 2010 were 9.3 μg/L compared to the MCL of 10 μg/L. Although lower than the regulatory MCL, the arsenic levels exceed the Public Health Goal of 0.004 μg/L. To address this, the City Well 3A Groundwater Well Treatment Facility Project is being presented for approval under the Final Construction Work Authorization (FCWA) process outlined in the CA.
The project is divided into two phases. Under this FCWA, Phase I involves updated sampling of City Well 3A to determine the best arsenic treatment solution. RWS/Veolia received three bids, and the lowest, most responsive bidder was selected for the following tasks, with a cost of $273,415. As per the terms of the CA, capital improvement projects managed by RWS-Veolia are entitled to project management and construction management percent of contract costs of 20%, thereby bringing the total project not-to-exceed cost to $328,098 for the following tasks:
• Pump test
• Pre/post video inspection
• Bail and brush
• 60-hour pump development test
• Water quality sampling and testing
Phase II will require a separate FCWA for the design and construction of the treatment facility.
RWS/Veolia will manage the project, and payments will be made through the concession trust account, not directly by the City or RUA. As the City's Concession Agreement partner, RWS/Veolia is not required to complete a Disclosure Form.
The total estimated construction cost for the City Well 3A Groundwater Well Treatment Facility is $6.2 million, with $2 million funded by a U.S. Bureau of Reclamation (USBR) grant and $2.5 million from the REAP 2.0 grant. Both grants have been extended until June 30, 2026.
ENVIRONMENTAL IMPACT
The proposed action is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has the potential to result in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. According to Section 15378(b), a Project does not include (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
GENERAL PLAN CONSISTENCY
This action is consistent with Guiding Principle 3 in the General Plan:
Our City government will lead by example and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
LEGAL REVIEW
The City Attorney's Office has reviewed the staff report.
FINANCIAL IMPACT
Operating Budget Impact
There is no impact to RUA’s operating budget.
Capital Improvement Budget Impact
Phase I of the City Well 3A Groundwater Treatment Facility, which includes updated sampling to guide facility design, is not grant-reimbursable. The $328,098 required for this phase will be funded from the Rialto Trust Water Construction/Restricted Fund, which has an available balance of $2.7 million.
The total construction cost for the City Well 3A Groundwater Treatment Facility is estimated at $6.2 million, with $2 million from USBR grant funds and $2.5 million from REAP 2.0. The remaining $1.7 million will require City Council/RUA Board approval before awarding a construction contract.
Licensing
This action does not require a business license.