For City Council Meeting January 27, 2026
TO: Honorable Mayor and City Council
FROM: Tanya Williams, City Manager
AUTHOR: Sachin Chawla, Director of Utilities
Title
Request City Council/Rialto Utility Authority to Approve a Second Amendment to the Professional Services Agreement With Water Resources Economics in an Amount of $20,000 for a Total Agreement Compensation Not to Exceed $120,000.00 and Authorize the City Manager or Their Designee to Execute all Related Documents.
Body
RECOMMENDATION
Staff recommends that the City Council/Rialto Utility Authority Board approve a second amendment to the professional services agreement with Water Resources Economics in the amount of $20,000 for a total agreement compensation not to exceed $120,000 and authorize the City Manager or their designee to execute all related documents.
BACKGROUND
On June 12, 2025, the City of Rialto/Rialto Utility Authority retained a contract with Water Resources Economics in the amount of $95,455 to prepare a comprehensive rate study to support proposed adjustments to the water and wastewater rates. The contract was later increased to $100,000 to support additional costs relating to the January 13th Public Hearing.
On January 13, 2026, City Council/RUA Board conducted and continued a Public Hearing pertaining to the Water and Wastewater Rates. Subsequently, the City Council/RUA Board directed staff to return at a subsequent date to answer questions related to the proposed rate adjustment.
ANALYSIS/DISCUSSION
Following City Council direction, staff coordinated with Water Resources Economics to begin preparing additional work regarding the water and wastewater rate study. Due to the compressed timeline and the expanded scope of work, the consultant requires additional funding to complete their analyses and finalize materials for public presentation.
ENVIRONMENTAL IMPACT
The 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 a potential for resulting 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
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.”
Approval of this action also complies with the City of Rialto General Plan Goal and Policy:
Goal 3-6: Require that all developed areas within Rialto are adequately served with essential public services and infrastructure.
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 the staff report.
FINANCIAL IMPACTS
Operating Budget Impact
The proposed Water Resources Economics amendment will increase the contract amount by $20,000, bringing the total not-to-exceed amount to $120,000.
The additional funding of $20,000 is available in:
1) Fund 660 Wastewater Contract Services, Account No. 56607860-52011, for $12,000; and
2) Fund 670 Water Contract Services, Account No. 56707960-52011, for $8,000
Capital Improvement Budget Impact
There is no impact on the Capital Improvement Budget.
Licensing
Water Resources Economics maintains a current City of Rialto business licenses.
ATTACHMENTS
1. Water Resource Economics - Professional Services Agreement
2. Water Resource Economics - Second Amendment
3. Conflict of Interest
4. Business License