For Water Subcommittee Meeting March 26, 2026
TO: Water Subcommittee Members
APPROVAL: Sachin Chawla, Director of Utilities
FROM: Toyasha Sebbag, Assistant to the City Manager
Title
Staff Request Water Subcommittee Provide Feedback on a Final Construction Work Authorization with Rialto Water Services, as Operated by Veolia North Operating Services, Inc. for the Sycamore Ave Sewer Trunk Line Project. (ACTION)
Body
RECOMMENDATION
Staff recommends that the Water Subcommittee provide feedback on a Final Construction Work Authorization (FCWA) with Rialto Water Services, as operated by Veolia North Operating Services, Inc. for the Sycamore Ave Sewer Trunk Line Project.
BACKGROUND
On March 27, 2012, the City Council and the Rialto Utility Authority (RUA) approved a Concession Agreement (CA) with Rialto Water Services, LP (RWS), operated by Veolia North America. The CA established a framework for capital project delivery, including both specific projects identified at the time of approval and future projects mutually initiated by RUA or RWS through the Final Construction Work Authorization (FCWA) process.
At the June 23, 2025, Water Subcommittee meeting, the Committee reviewed a staff request to post a Notice Inviting Bids (NIB) for the Sycamore Avenue Sewer Trunk Line Project, which had an engineer’s estimated cost of $5.52 million. The Water Subcommittee provided feedback supporting staff’s recommendation to proceed with bidding the project.
ANALYSIS/DISCUSSION
On February 20, 2026, RWS-Veolia issued a Request for Proposals (RFP) / Notice Inviting Bids (NIB) for the Sycamore Avenue Sewer Trunk Line Project utilizing a design-bid-build delivery method.
The project includes installation of approximately 5,200 linear feet of 15-inch sanitary sewer trunk line, 54 linear feet of 8-inch force main, installation of fourteen (14) sewer manholes, utility potholing, and pavement restoration along Sycamore Avenue from Baseline Road to the Sycamore Sewer Lift Station near the Interstate 210 Freeway.
Bids were received on March 20, 2026, with a total of twelve (12) bids submitted, reflecting strong contractor interest and a highly competitive procurement environment. The bids are currently undergoing detailed review by Veolia for responsiveness, contractor qualifications, and compliance with project requirements.
Based on a preliminary review of the bid results, the apparent low bid inclusive of Veolia 20% fee is approximately $3.6 million. The next lowest bid is approximately $4.1 million, indicating a notable spread between the lowest and second-lowest bidders, and the top bid at $7.7 million, with an average bid of $5.1 million.
Figure 1: Sycamore Ave Sewer Trunk Line Project
The receipt of twelve bids and the spread between the lowest bidders support that the pricing is the result of a competitive bidding process. In addition, the apparent low bid is significantly below the engineer’s estimate of $5.52 million, further indicating favorable market conditions and cost efficiency for this project. The reduced cost is likely attributable to current contractor availability, competitive market conditions, and the defined project scope within an existing public right-of-way.
While this initial spread suggests a competitive low bid, the bid evaluation process is still ongoing. As such, the apparent low bidder is subject to change pending completion of Veolia’s full review, including verification of bid completeness, contractor responsibility, and any potential irregularities.
Staff is seeking Water Subcommittee feedback on advancing the project to the City Council meeting scheduled for April 14, 2026, where the final bid results and recommended contractor will be presented for approval through FCWA.
Advancing the project on this timeline is important to maintain the proposed construction schedule. The project includes work near Morgan Elementary School, and significant construction activities must occur during the summer recess window to minimize impacts on school operations and the surrounding neighborhood. Delaying authorization beyond the April Council meeting could jeopardize the ability to begin construction in time to meet this schedule.
ENVIRONMENTAL IMPACT
The proposed action is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302(c) - Replacement or Reconstruction, as the project consists of replacing and upgrading an existing sewer trunk line within an existing public right-of-way involving negligible expansion of capacity. Portions of the work occurring within the existing roadway are also exempt under Section 15301(b) - Existing Facilities.
GENERAL PLAN CONSISTENCY
Approval of the proposed action also complies with the following City of Rialto Guiding Principles, General Plan Goals and Policies: “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 IMPACTS
Operating Budget Impact
There is no impact on the Operating Budget.
Capital Improvement Budget Impact
The Sycamore Avenue Sewer Trunk Line Project is included in the City’s Wastewater Capital Improvement Program (CIP) and is reflected in the adopted Water and Wastewater Rate Model as an identified wastewater infrastructure project with an estimated cost of approximately $5.52 million.
Funding for the project will be provided through an appropriation from the Wastewater Enterprise Fund (Fund 660) reserves to support the capital construction costs associated with the project. The appropriation is consistent with the financial planning assumptions incorporated in the City’s adopted rate model and the long-term capital improvement program for the wastewater utility.
Licensing
This action does not require a business license.
ATTACHMENTS
1. Draft FCWA - Sycamore Ave Trunk Line Project
2. Final 2023 Rialto Pavement Management Plan