For Water Subcommittee Meeting, March 26, 2026
TO: Water Subcommittee Members
APPROVAL: Sachin Chawla, Director of Utilities
FROM: Toyasha Sebbag, Assistant to the City Manager
Title
Staff Request Water Subcommittee Provide Feedback on Fontana Union Water Company Shares. (ACTION)
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RECOMMENDATION
Staff recommends that the Water Subcommittee provide feedback on Fontana Union Water Company Shares.
BACKGROUND
Fontana Union Water Company (FUWC) is a mutual water company located in Fontana, California, whose shareholders hold proportional ownership interests in the company and its associated water rights and infrastructure.
Unlike traditional corporate stock, shares in a mutual water company represent both voting rights and access to water supplies derived from the company's groundwater and surface water sources.
Historical records show that the City of Rialto (City) acquired multiple FUWC share certificates between the late 1950s and mid-1960s, through purchases and transfers from private shareholders and corporate entities.
Examples documented in the share certificates include transfers from:
* Kaiser Land Company
* E.R. Sedlack Company
* private shareholders
Based on the compiled shareholder documentation, the City currently holds approximately 170.25 shares of FUWC stock (Attachment 1).
As a shareholder, the City is responsible for paying periodic assessments levied by FUWC to support the operation and maintenance of the water company's facilities.
Assessment records indicate that the City has paid shareholder assessments from 1959 through 2026, totaling approximately $565,314.
ANALYSIS/DISCUSSION
The City/Rialto Utility Authority (RUA) periodically evaluates its water supply portfolio to ensure that resources are aligned with current and future municipal water supply needs.
Historical records indicate that the City acquired shares in the Fontana Union Water Company (FUWC) during the 1950s and 1960s, when shares were periodically available fo...
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