For City Council and Rialto Utility Authority Meeting [December 14, 2021]
TO: Honorable Mayor and City Council
APPROVAL: Marcus Fuller, City Manager
FROM: Thomas J. Crowley, P.E., Utilities Manager
Title
Request City Council/Rialto Utility Authority Board to: (1) Receive a Presentation on the Rialto Utility Authority Financial Analysis, and (2) Adopt Resolution No. 7819 Amending the 2021-2022 Fiscal Year Budget Authorizing a Transfer of $4,873,105 from the American Rescue Plan Act Fund (Fund 232) to the Rialto Utility Authority Water Enterprise Fund (Fund 670).
(ACTION)
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 in portions of Fontana and Bloomington. The City's water service area is generally located within the central portion of the City between Baseline Road and I-10.
In 2012, the City Council/RUA 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 a Proposition 218 rate setting majority protest process. The water and wastewater rates were last adjusted on January 1, 2018. The 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/D...
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