For City Council Meeting April 23, 2024
TO: Honorable Mayor and City Council
APROVAL: Tanya Willliams, Acting City Manager
FROM: Stephen Dopudja, P.E., Interim Utilities Manager
Toyasha Sebbag, Assistant to the City Manager
...Title
Request City Council to Set a Public Hearing for June 25, 2024, regarding Water and Wastewater Utility Services Rate Adjustments. It is recommended that the City Council and Rialto Utility Authority Board adopt Resolution No. 8204 and RUA Resolution No. 08-31.
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RECOMMENDATION
It is recommended that the City Council and Rialto Utility Authority Board adopt Resolution No. 8204 and RUA Resolution No. 08-31 to set a Public Hearing for June 25, 2024, as Required Under Proposition 218 to Consider the Proposed Water and Wastewater Utility Services Rate Adjustments as supported by the FG Solutions, LLC Financial Rate Analysis.
BACKGROUND
In 2012, the City Council/Rialto Utility Authority (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 the Proposition 218 (Prop. 218) process. From the rate schedule developed in 2012, 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/RUA authorized a sole source Professional Services Agreement Contract with F.G. Solutions, LL...
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