FOR: City Council and Rialto Utility Authority Meeting [August 22, 2023]
TO: Honorable Mayor and City Council
APPROVAL: Henry Garcia, Interim City Manager
FROM: Thomas J. Crowley, P.E., Utilities Manager
Toyasha Sebbag, Assistant to the City Manager
...Title
Request that the City Council/Rialto Utility Authority Authorize Staff to proceed with the Preparation of Phase 2: Water and Wastewater Rate Study
(ACTION)
...Body
BACKGROUND:
In 2012, the City Council/Rialto Utility Authority adopted resolutions approving a Concession Agreement with Rialto Water Services (RWS). The Concession Agreement outsourced the operations and maintenance of the City's Water and Wastewater enterprise to a private contractor for a term of thirty years.
Per the Concession Agreement, the City maintains ownership of all assets and the authority and responsibility for setting utility rates subject to contractual obligations and financial performance standards.
In 2012, the City adopted a five-year rate schedule through the Proposition 218 process. The water and wastewater rates were last adjusted on January 1, 2018. The multi-year rate adjustments approved in 2012 allowed for the financing and implementation of $41 million in improvements and repairs that improved system reliability and efficiencies for both the water and wastewater systems.
ANALYSIS/DISCUSSION
On April 11, 2023, the City Council authorized a sole source Professional Services Agreement Contract with F.G. Solutions, LLC to complete Phase 1: Water/Wastewater Revenue Analysis of the Water and Wastewater Rate Study. Staff presented the results of the Revenue Analysis to the Water Subcommittee on June 28, 2023, and again on July 26, 2023, to provide answers to questions from the June meeting.
Water and Wastewater Rate Study Timeline
Staff was directed to present the results of the Revenue Analysis to the City Council for direction on whether Phase 2 of the Water and Wastewater Rate Study should be completed. The Rev...
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