For Water Subcommittee Meeting January 29, 2025
TO: Honorable Water Subcommittee Members
APPROVAL: John Rossi, Interim Utilities Director
FROM: Toyasha Sebbag, Assistant to the City Manager
...Title
Staff request that the Water Subcommittee provide feedback on the Automatic Meter Infrastructure Project Update. (ACTION)
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RECOMMENDATION
Staff recommends that the Water Subcommittee provide feedback on the Automatic Meter Infrastructure Project Update.
BACKGROUND
On March 27, 2012, the City Council and Rialto Utility Authority (RUA) took several actions related to the approval of a Concession Agreement (CA) with Rialto Water Services, LP, (RWS), as operated by Veolia West Operating Services, Inc. (Veolia). This public-private partnership assigned the operation and maintenance of the City’s water and sewer/wastewater utilities to RWS. Pursuant to Article XII “Water Facility Improvements and Capital Projects” of the CA, certain capital projects were identified by the CA for implementation by RWS. Alternatively, the CA laid out a process for City/RUA-initiated capital improvement projects.
ANALYSIS/DISCUSSION
The City of Rialto (City) and Rialto Utility Authority (RUA) have secured $8 million in grant funds to implement the Advanced Metering Infrastructure (AMI) Project: $6 million from the Department of Water Resources Urban Community Drought (DWR) Relief Grant and $2 million was secured from the U.S. Department of Interior, Bureau of Reclamation (USBR).
Staff requested an extension from the granting agencies. Those grant extensions were recently confirmed to November 1, 2026 for DWR and to December 31, 2026 for USBR.
RWS and City Utility staff worked throughout 2024 to procure bids for the AMI work. The following table details the bid amounts:
NOTE: * Best And Final Offer (BFOA).
Staff is working with procurement and negotiating with the lowest responsive bidder, USG, to award the contract as a city-initiated project within the grant funding timeframe. Staff is also coordinating to utilize internal City resources to assist with inspections during construction. Additionally, staff is analyzing additional resources to be added for customer communications, traffic control, billing software updates, etc.
ENVIRONMENTAL IMPACT
Section 21084 of the California Public Resources Code requires Guidelines for the 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. The replacement of existing water meters is considered a Class 1 project and is categorically exempt from CEQA.
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 IMPACT
Operating Budget Impact
By implementing an AMI meter system, it is anticipated that there will be a reduction in Veolia’s field service staff due to significantly reduced field visits. The exact reduction will be calculated during the 2024-2027 Labor Reset of the Concession Agreement for Water and Wastewater with Rialto Water Services.
Capital Improvement Budget Impact
The Project will be fully funded through $8 million in grant funds to implement the Advanced Metering Infrastructure (AMI): Department of Water Resources Urban Community Drought Relief Grant Funds for $6,000,000 and the U.S. Department of Interior, Bureau of Reclamation Grant Funds for $2,000,000.
The grants will go before the City Council for acceptance of the grant monies at the same time that the contract is awarded to a vendor for the AMI project.