For City Council Meeting May 12, 2026
TO: Honorable Mayor and City Council
FROM: Tanya Williams, City Manager
AUTHOR: Nicole Hemmans, Senior Administrative Analyst
Title
Request City Council to: (1) Adopt Resolution No. 8501 and RUA Resolution No. 26-04 Amending its 2025-2026 Wastewater Fiscal Year Budget for an Amount of $3,091,098; (2) Authorize a Final Construction Work Authorization with Rialto Water Services, Operated by Veolia North Operating Services, Inc., for the Sycamore Avenue Sewer Trunk Line Project, in an Amount Not to Exceed $3,091,098; (3) Authorize the City Manager/Executive Director or Their Designee to Execute all Related Documents. (ACTION)
Body
RECOMMENDATION
Staff recommends that the City Council:
1) Adopt resolutions amending its 2025-2026 Wastewater Fiscal Year Budget for an amount of $3,091,098;
2) Authorize a Final Construction Work Authorization with Rialto Water Services, operated by Veolia North Operating Services, Inc., for the Sycamore Avenue Sewer Trunk Line Project, in an amount not to exceed $3,091,098; and
3) Authorize the City Manager/Executive Director or Their Designee to execute all related documents.
BACKGROUND
On March 27, 2012, the City Council and the Rialto Utility Authority (RUA) approved a Concession Agreement (CA) with Rialto Water Services, LP, operated by Veolia North America (RWS-Veolia). 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 of the project.
ANALYSIS/DISCUSSION
On February 20, 2026, RWS-Veolia issued an NIB for the Sycamore Avenue Sewer Trunk Line Project through the City’s PlanetBids procurement portal, utilizing a design-bid-build delivery method. A total of twelve (12) bids were received on March 20, 2026. Following a comprehensive evaluation, Veolia determined that Ferreira Construction was the lowest responsive and responsible bidder and recommended award based on Bid Option 2 (Grind and Overlay pavement restoration).
This project represents Phase 2 of a broader three-phase sewer system improvement program identified through RUA’s sewer master planning efforts and hydraulic modeling analysis to address capacity constraints and support planned development. Phase 1 (Baseline Road Sewer Trunk Line) was completed in 2024, and Phase 3 (Acacia Avenue extension) is planned to maintain system continuity and capacity across the wastewater system.
The need for this project is driven by the existing 8-inch sewer main along Sycamore Avenue approaching capacity, primarily due to ongoing residential growth north of the project area. Upsizing to a 15-inch trunk line is necessary to ensure adequate conveyance, reduce the risk of system surcharging, and maintain long-term reliability of the wastewater system.
The project scope includes installation of approximately 5,200 linear feet of 15-inch sanitary sewer trunk line, 54 linear feet of 8-inch force main, fourteen (14) sewer manholes, utility potholing, traffic control, dewatering, and full pavement restoration, including striping and roadway improvements. The work also includes post-construction CCTV inspection, geotechnical testing, and preparation of as-built records to ensure compliance with City standards and long-term asset management requirements.
The total project cost is $3,091,098, which includes:
• $2,514,140 for construction (Ferreira Construction - lowest responsive bid)
• $37,000 for construction support cost
• $510,228 for Veolia’s 20% fee covering project management, construction oversight, insurance, and corporate overhead
• $29,730 for design and insurance services previously financed (2023)
The project schedule anticipates RUA Board approval on May 12, 2026, with contractor mobilization beginning in May 2026 and substantial completion by September 30, 2026. Construction activities adjacent to Morgan Elementary School are specifically constrained to occur between June 8, 2026, and August 7, 2026, to minimize impacts during the school year. The FCWA is included as Attachment 1.
Figure 1: Sycamore Ave Sewer Trunk Line Project
On April 30, 2026, the Water Subcommittee reviewed this item and provided feedback that the item be moved forward to the City Council/RUA Board for consideration.
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
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 proposed appropriation is consistent with the financial planning assumptions incorporated in RUA’s adopted rate model and the long-term Capital Improvement Program for the wastewater utility. Approval of this action authorizes the allocation of funds for this specific project in accordance with RUA’s established capital planning and budgeting process.
Licensing
This action does not require a business license.
ATTACHMENTS
1. FCWA
2. Resolution Authorizing a New Appropriation of $3,091,098
3. RUA Resolution Authorizing a New Appropriation of $3,091,098