For City Council Meeting November 25, 2025
TO: Honorable Mayor and City Council
FROM: Tanya Williams, City Manager
Title
Request City Council/Rialto Utility Authority to: (1) Approve an Agreement Between the City of Rialto and the County of San Bernardino for an Additional Three-Year Term (January 1, 2026 - September 30, 2028) to Allow Continued use of 1,600 acre-feet of Standby Water Lease Within the Rialto/Colton Groundwater Basin, and (2) Authorize the City Manager to Execute all Related Documents.
Body
RECOMMENDATION
Staff recommends that the City Council/Rialto Utility Authority:
1) Approve an agreement between the City of Rialto and the County of San Bernardino for an additional three-year Term (January 1, 2026 - September 30, 2028) to allow continued use of 1,600 acre-feet of Standby Water Lease within the Rialto/Colton Groundwater Basin; and
2) Authorize the City Manager to execute all related documents.
BACKGROUND
The City of Rialto (Rialto) and County of San Bernardino (County) first entered into Agreement No. 00-289 on May 20, 2000, authorizing the County to use up to 1,600 acre-feet per year of Rialto's groundwater rights leased to the Fontana Union Water Company (FUWC) for compliance with Regional Water Quality Control Board Order No. 99-86 (Cleanup and Abatement Order No. 98-96).
In February 2019, the Standby Water Lease between Rialto and FUWC was extended for another 20 years. Both parties agreed to pursue a Consumer Price Index (CPI)-based rate adjustment of up to 5 percent annually, applied to the County's payment obligations.
The original agreement with the County expired in May 2020, after which the County obtained a two-year extension (through December 31, 2022) approved by the City Council on September 14, 2021. A subsequent Amendment No. 1 extended the agreement through December 31, 2025, allowing continued County use of up to 1,600 acre-feet of standby water and corresponding reimbursements to Rialto.
The adjustments are base...
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