For Water Subcommittee Meeting July 24, 2025
TO: Water Subcommittee Members
FROM: John Rossi, Interim Utilities Director
AUTHOR: Toyasha Sebbag, Assistant to the City Manager
Title
Staff request that the Water Subcommittee provide feedback on the proposed Water and Wastewater/Sewer Rate Study Schedule.
(ACTION)
Body
RECOMMENDATION
Staff recommends that the Water Subcommittee provide feedback on the proposed Water and Wastewater/Sewer Rate Study Schedule.
BACKGROUND
On July 23, 2024, the City Council/Rialto Utility Authority (RUA) Board adopted a one-year rate adjustment, effective January 1, 2025, for water and wastewater/sewer services. The one-year rate was based on a five-year financial projection. Staff was directed to return in 2025 with an updated rate analysis for Council/RUA Board reevaluation.
ANALYSIS/DISCUSSION
On April 7, 2025, staff released RFP No. 25-039 for Financial Consulting Services for a Water and Wastewater/Sewer Rate Analysis. Three proposals were received: Bartele, Raftelis, and Water Resources Economics.
An evaluation committee consisting of John Rossi, Interim Utilities Director; Toyasha Sebbag, Assistant to the City Manager; and Rod LeMond, CPA, RUA Financial Consultant, reviewed the proposals and ranked Water Resources Economics (WRE) as the most qualified firm to conduct the analysis.
A tentative schedule for implementation of a new rate structure, effective January 1, 2026, is as follows:
1. Kick-off Meeting with staff and RWS/Veolia - July 2, 2025
2. Presentation to Water Subcommittee - August 28, 2025
3. Presentation to Utility Commission - September 16, 2025
4. City Council Presentation (includes Technical Memorandum) - September 23, 2025
5. Proposition 218 Mailing - September 26, 2025
6. Public Hearing - November 18, 2025
7. Rates Effective - January 1, 2026
To meet the above schedule, WRE recommends a two-phase approach: Phase I - Update Financial Plan Only; Phase II - Cost of Service & Rate Design.
Phase I will ...
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