For City Council Meeting and Rialto Utility Authority [September 10, 2019]
TO: Honorable Mayor and City Council
APPROVAL: Rod Foster, City Administrator
FROM: Thomas J. Crowley, P.E., Utilities Manager
Title
Request City Council/Rialto Utility Authority to Set a Public Hearing for November 12, 2019 Required Under Proposition 218 to Consider the Proposed Consumer Price Index Rate Adjustments for Water and Wastewater Utility Services as supported by the FG Solutions Financial Planning Analysis Report.
Body
BACKGROUND
The City of Rialto (City) provides water and wastewater services to residences and businesses within City limits. The City provides these services through the Rialto Utility Authority (RUA). The approximate wastewater service area is comprised of the entire City limits with additional service outside the City limits from portions of Fontana and Bloomington. The water service area is generally the central portion of the City.
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.
As a result of years of declining revenues, the City deferred much of the utility-related maintenance projects to avoid utility customer rate adjustments. Analysis done prior to the Concession Agreement, outlined projects and maintenance work that needed to be done to ensure continued operations and system reliability. A financial analysis was also completed and rate adjustments to both water and wastewater rates was recommended. In 2012, the City adopted a five-year rate schedule through a Proposition 218 ...
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