For City Council Meeting August 12, 2025
TO: Honorable Mayor and City Council
FROM: Tanya Williams, City Manager
AUTHOR: Nicole Hemmans, Senior Administrative Analyst
Title
Staff 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 the Rialto Biosolids Handling Upgrades Project at the Wastewater Treatment Plant for an Amount Not to Exceed $35,598,387.
(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 the Rialto Biosolids Handling Upgrades Project at the Wastewater Treatment Plant for an amount not to exceed $35,598,387.
BACKGROUND
On March 8, 2022, the City Council (City)/Rialto Utility Authority (RUA) Board approved the Final Construction Work Authorization (FCWA) which included, among other projects, for Rialto Water Services (RWS) to complete a Rialto Biosolids Upgrade Study.
On February 14, 2023, the City/RUA Board approved the FCWA for RWS to complete the 30% design, and 60% design and preparation of a guaranteed maximum price (GMP) for Biosolids Handling Equipment.
The GMP is good until August 27, 2025. The City contracted Jacobs Engineering to review the costs for the project as proposed and to determine if replacing the equipment that needs rehabilitation would be less expensive. Jacobs concluded that replacing and rehabilitating the existing equipment would provide some upfront capital savings. However, the proposed project provides newer, more efficient technology that would result in long-term life cycle savings versus the repair and replacement approach.
ANALYSIS/DISCUSSION
The existing biosolids handling equipment, including sludge thickeners and dewatering systems is over 30 years old, beyond its useful life, and in need of replacement. This equipment processes sludge from the aeration basins and primary clarifier, feeds it to the anaerobic digesters, and then dewaters the digested sludge for drying and off-site disposal.
The proposed scope of work includes:
(1) Replacing two gravity belt thickeners with rotary drum thickeners;
(2) Replacing existing belt filter presses with centrifuges;
(3) Performing associated site, mechanical, plumbing, and electrical work, including replacing the digester covers with new inflatable covers; and
(4) Modifying pumps and piping to support the new equipment.
This Biosolids Handling Upgrades Project would enhance operational reliability, provide redundancy, increase digester gas production, and improve sludge dewatering, which would potentially reduce hauling costs.
Below is a detailed cost breakdown of the requested Final Construction Work Authorization (FCWA) amount of $35,598,387:
It is to be noted that there is the potential for a reduction of funds needed of $1,835,953 associated with this project. Staff is currently researching how previously unused funds may be applied to reduce the overall cost.
Staff provided an update on the Biosolids Project to the Water Subcommittee on July 22, 2025, which included the Final Construction Work Authorization (FCWA), costs, fees, and
schedules. The Water Subcommittee’s feedback on their review of the project was to move forward with presenting this item to the City Council for recommendation at the FCWA amount of $35,598,387.
ENVIRONMENTAL IMPACT
Section 21084 of the California Public Resources Code requires Guidelines for Implementation of the California Environmental Quality Act (CEQA). The Guidelines are required to include a list of classes of projects which have been determined not to have a significant effect on the environment and which are exempt from the provisions of CEQA. In response to that mandate, the Secretary for Resources identified classes of projects that do not have a significant effect on the environment, and are declared categorically exempt from the requirement for the preparation of environmental documents. In accordance with Section 15301 “Existing Facilities”, of the CEQA Guidelines, a Class 1 project consists of the operation, repair, maintenance, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency’s determination. This replacement is considered Clas 1 and would be categorically exempt.
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.”
Goal 3-8: Promote affordable and quality water service capable of adequately meeting normal and emergency water demands to all areas in Rialto.
Policy 3-8.4: Advocate regular evaluation of the entire water supply and distribution system to ensure its continued adequacy, reliability, and safety.
LEGAL REVIEW
The City Attorney’s Office has reviewed and supports the staff report.
FINANCIAL IMPACT
Operating Budget Impact
Biosolids Handling Upgrades Project is expected to have a positive impact on the Rialto Utility Authority’s (RUA) Wastewater Operating Budget by significantly reducing sludge hauling and disposal costs over the long term. Upgraded dewatering technology, improved system automation, and more efficient equipment will enhance operational reliability and optimize performance, resulting in cost savings.
Capital Improvement Budget Impact
The Capital Improvement Program (CIP) Cash Flow Model below confirms $46.1 million in available sources in FY2026, with scheduled allocations for "Solids Handling" in both FY2026 ($6 million) and FY2027 ($12.36 million):
Based on the Wastewater Capital Improvement Program (CIP) Cash Flow Model, adequate funds are available to fully support this project through FY2027. Furthermore, staff is evaluating the potential use of $1.84 million in unspent funds from prior projects to reduce the overall funding need for this FCWA.
Licensing
Prior to execution of the Professional Service Agreement/Purchase Order/Construction Contract, the vendor shall submit a business license application and pay a Business License tax, as well as Administration and State fees.