City of Rialto / IEUAWater Resources PartnershipPrinciples of AgreementCity of RialtoWater Subcommittee MeetingJanuary 26, 2022(Similar presentation was given to IEUA’s Engineering, Operations and Water Resources Committee on 1/12/22) • The Santa Ana River Multi Species Habitat Conservation Plan (SAR HCP) identified the benefit of removing flows from the City of Rialto wastewater treatment plant during the summer months due to the adverse impact to native species.• City of Rialto is interested in monetizing its recycled water as an annual revenue source.• Due to seasonality of recycled water supplies, IEUA needs to augment its recycled water supply during peak demand months between May and October.• IEUA and City of Rialto initiated water resources partnership discussions in 2019.2 Background
• IEUA to design, construct, and operate recycled water facilities with 7,000-acre-foot capacity (i.e., pipeline, pump station, interconnection)• IEUA to have exclusive rights to divert 3,500 acre-feet of Rialto’s recycled water into IEUA system• IEUA to purchase this amount at a rate of $275 per acre-feet annually between May and October for a period of 50 years. The annual rate to be adjusted at 2 percent or the CPI index, whichever is higher.• IEUA and its agencies have first right of purchase for the remaining six months or future expanded flows over the facilities’ capacity at a rate of $375-$400 per acre-feet3 Principles of Agreement
4 Proposed Infrastructure & Deal Points Summary•City of Rialto RW supply: 7 TAFY• Project considered under Upper SAR MSHCP •Project Components• 7 MGD for six months [May to October] | 3,500 AFY• (1) Pump station + pipeline • Up to $1M for supplemental well to meet HCPdischarge requirements Term[Years]Proposed Commodity Rate50$275/AFOption to purchase beyond 3,500 AFY$375 - $400/AF • January 12, 2022 – IEUA Engineering, Operations and Water Resources Committee• Completed – Supported by the Committee• January 26, 2022 – Rialto Water Subcommittee Meeting• January 27, 2022 – IEUA Regional Technical Committee presentation• February 3, 2022 – IEUA Regional Policy Committee presentation• February 16, 2022 – IEUA Board of Directors approval of the final Principles of Agreement• February 22, 2022 – Rialto City Council approval of the final Principles of Agreement5 Schedule
The City of Rialto Principles of Agreement mutually supports the City’s goal of monetizing the wastewater effluent, and IEUA's business goal of Water Reliability by implementing an integrated water resources management plan that provides the region with reliable and cost-effective water supply and promotes sustainable water use. • IEUA will begin Preliminary Design Report for the Pump Stations and Pipeline• Evaluate the need for a potential well to facilitate the May to October water diversions in conformance with the HCP• Advance the Principles of Agreement to a more detailed Term Sheet• Negotiation of Final Agreement, with approval in late Fall/ early Winter 2022• Continue to explore monetization of November to April effluent flows6 Next Steps After Approval of the Principles of Agreement 7Questions/Discussion