City of Rialto / IEUA
Water Resources Partnership
Principles of Agreement
City of Rialto
City Council Meeting
March 8, 2022
(Similar presentation was given to IEUA’s Board of Directors Meeting on 2/16/22) • 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
3 IEUA Recycled Water Supplies
vs Demands
Flows from Rialto (May to October)
3,500 AFY at $275/AF
Option to purchase beyond 3,500
AFY at $375 - $400/AF
• 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-feet 4 Principles of Agreement
5 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 HCP
discharge requirements
Term
[Years]
Proposed
Commodity Rate
50 $275/AF
Option 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 • March 8, 2022 – Rialto City Council approval of the final Principles of Agreement 6 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 is anticipated in September 2022 • Continue to explore monetization of November to April effluent flows 7 Next Steps After Approval of the
Principles of Agreement
8 Questions/Discussion