For Water Subcommittee Meeting August 27, 2026
TO: Water Subcommittee Members
APPROVAL: Yazdan Emrani P.E., Director of Public Works
FROM: Nicole Hemmans, Senior Administrative Analyst
Title
Staff Request Water Subcommittee Receive an Overview of the Labor Reset Process and Result, and Provide Feedback on the 2020 - 2023 Labor Component Reset and Associated Staffing Adjustments Under the Rialto Water Services Operations and Maintenance Subcontract.
RECOMMENDATION
Staff recommends that the Water Subcommittee receive an overview of the Labor Reset process and result, and provide feedback on the 2020 - 2023 Labor Component Reset and associated staffing adjustments under the Rialto Water Services Operations and Maintenance Subcontract.
Body
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 (Veolia). Articles VIII and XIV of the Concession Agreement establish the compensation framework for wastewater and water services, including the Labor Component.
Sections 8.11 and 14.11 of the Agreement require that the Labor Component be recalculated every fourth (4th) Contract Year using the methodology defined in the Operations and Maintenance Subcontract (OMS).
On March 26, 2026, Staff presented the proposed 2020-2023 Labor Component Reset and associated staffing adjustments to the Water Subcommittee for review and feedback.
Staff have worked with RWS to finalize the calculations to confirm the Fixed Labor Service Fees for the next four-year period 2024 to 2027. The Water Subcommittee at a previous meeting concurred with the hiring of the Lab Tech position. Both staff and RWS are in agreement with these labor-related fees and the three additional positions as proposed by RWS.
ANALYSIS/DISCUSSION
The Labor Component Reset remains under review by Staff and Veolia. An update to the Labor Reset will be presented to the...
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