FINAL CONSTRUCTION WORK AUTHORIZATION (“FCWA”)
RIALTO BIOSOLIDS HANDLING UPGRADE PROJECT
The City of Rialto and Rialto Utility Authority hereby authorizes work to commence on the upgrade of solids handling equipment at the Rialto Wastewater Treatment Plant (the “Project”), pursuant to the attached Guaranteed Maximum Price (GMP) and associated package.
Scope of Work
The existing biosolids handling equipment is over 30 years old and well beyond its useful life. The scope of the Project includes:
Replacing the existing two gravity belt thickeners with new rotary drum thickeners Replacing the existing belt filter presses with new centrifuges Replacing the existing digester covers with new inflatable covers Performing associated site work, including mechanical, plumbing, electrical, pump, and piping improvements The Project aims to achieve redundancy in the sludge and biosolids processing equipment to improve operational reliability, enhance digester gas production, and potentially reduce sludge hauling costs by producing a drier cake. The newly installed equipment will be integrated with SCADA to provide additional operational and control data, enabling future use of AI and other digital tools for process and energy optimization.
The scope of work for the Project is to execute the upgrades to biosolids handling equipment as detailed in the GMP package attached hereto.
Project History
The need for the biosolids handling equipment upgrades was identified in 2012 and included in the Facilities Improvement Plan (FIP) portfolio of projects under Project S1 at the start of the Concession Agreement. It was subsequently eliminated from the S1 project based on priority.
In November 2020, after Rialto City Council (“City Council”) approval of a 2019 Feasibility Study, Veolia competitively solicited price proposals from multiple design-build firms and selected AECOM-WM Lyles as the preferred bidder. In February 2021, the City approved the progressive design-build delivery by AECOM-WM Lyles.
In March 2022, the City authorized the Rialto Biosolids Upgrade Study to evaluate existing thickening, digesters, sludge storage, and the dewatering system to further define the full scope of the required upgrades. The study focused on identifying improvements to the digester system, controls, and gas storage optimization. In addition, thickening equipment, dewatering equipment, and transfer pumping/piping were assessed. A technical memorandum and condition assessment were completed and accepted by the City in November 2022.
In February 2023, the City authorized continuation of the progressive design-build project delivery through 30% design and GMP preparation.
In February 2024, AECOM-WM Lyles submitted the 30% design and cost estimate for review and approval. Subsequent to the page-turn review and City approval in April 2024, AECOM-WM Lyles was authorized to proceed with the 60% design, GMP development, and procurement of shop drawings for long-lead equipment.
The 60% design and GMP were submitted to the City in October 2024, and the GMP was re-validated in December 2024.
Arup, the Independent Engineer for the RWS bondholders, conducted a full review of the 60% design and GMP and issued a memorandum of findings in January 2025.
After April 7, 2025, the GMP was refreshed after detailed discussions among City staff, the City’s consultant, and RWS.
The GMP validity period was extended to August 27, 2025 to provide the City time to engage Jacobs Engineering for further review.
Current Status
At this time, only one belt filter press remains operational (installed in the 1970s). The second belt press is undersized and has been non-operational for approximately 10 years. As of January 2025, there is only one gravity belt thickener in operation, as the second thickener – installed in the 1980s – has failed and cannot be repaired due to equipment obsolescence and lack of available parts.
This FCWA will be presented to the Water Sub Committee on July 24, 2025, and subsequently to Rialto City Council for approval on August 12, 2025 before the GMP expires on August 27, 2025.
Cost Estimate
See Attachment 1 – Final Cost Sheet with total cost of and breakdown costs. Requested approval amount is $35,598,387, which is in addition to the previously approved amounts outlined in Attachment 1. The costs quoted herein are valid until August 27, 2025.
See Attachment 1 for GMP Details– Final FCWA Cost amount $35,598,387.
Total Project Cost is $36,799,987 and includes design fees incurred in the development of this FCWA.
Schedule
Veolia will execute a subcontract with the subcontractor immediately upon receipt of a signed FCWA from the City of Rialto. This project is expected to be completed by Q3 of 2027. A Baseline Schedule will be developed and submitted after project approval.
Insurance and Bonding Requirement
See Attachment _4 – Will be provided upon award of contract by subcontractor.
Major Assumptions
See Exhibit 1B – Project Price Clarifications.
Employment Impact
30-40 construction jobs throughout the course of the project are anticipated.
FINAL CONSTRUCTION WORK AUTHORIZATION
Project Title:
Rialto Biosolids Handling Upgrades Project
Approved By Rialto City Council/Rialto Utility Authority:
Date:______________ Tab Item No. _____
Amended By Rialto City Council/Rialto Utility Authority:
N/A
Amendment Issued on Behalf of Rialto Utility Authority by:
By: ____________________________________________________________ Name & Title: ___________________________________________________ Date: ____________________________________________________________ Received by:
Rialto Water Services, LLC
By: ____________________________________________________________ Name & Title: ___________________________________________________ Date: ___________________________________________________________ ATTACHMENT 1 – Cost Breakdown Sheet
COST BREAKDOWN SHEET - CONSTRUCTION
Sr.
Description
Amount ($)
1 Sitework
$521,696
2 Site Piping
$441,619
3 Primary Sludge Screening
$1,511,235
4 Thickening Process Area
$2,426,537
5 Dewatering Process Area
$4,533,946
6 Anaerobic Digester No. 2 Upgrade
$630,987
7 Anaerobic Digester No. 1 Upgrade
$647,763
8 Retrofit existing Sludge Storage Tank
$3,377,632
9 Electrical & Instrumentation
$5,905,919
10 Permits and Procurement Cost
$125,000
11 Construction Phase Services, Commissioning, Acceptance Test, Warranty, As-Builts, Closeout $1,711,950
12 General conditions
$2,025,114
13 Cost Escalation
$699,096
14 Contractor Contingency (4.2% of Construction)
$1,273,398
15 Design Builder Fee (11.95% of Construction)
$3,576,555
16 Indirect Costs - Bonds & Insurance (1.75% of Construction) $526,388
17 Final Engineering
$816,385
18 Engineering Services during Construction
$863,688
Total Construction Cost
$31,614,908
Veolia Insurance Cost (1.2%)
$379,379
Veolia Soft Costs (11.4%)
$3,604,100
Total FCWA Amount
$35,598,387
Optional Page for staff consideration:
RECONCILIATION OF PREVIOUS FCWA’S
Sr.
Description
Amount ($)
1 Biosolids FCWA July 2025
$35,598,387
5 Unused Related Scope Authorizations previously approved (See table below) ($1,835,953)
Net FCWA Adjusted
$33,762,434
Unused FCWA Amounts Previously Approved
Sr.
Description
Amount ($)
1 (Offset) Previously approved amounts for early Procurement of Long Lead Equipment approved via FCWA in February 2023 and work scope added to Biosolids Upgrades project.
The project line items in the FCWA approved in February 2023 will be billed in full when the procurement POs are issued for Centrifuge and RDTs ($632,000)
2 (Offset) For Digester 1 Rehabilitation Project previously authorized via FCWA in May 2022, and work scope added to Biosolids Upgrades project This project line item in the FCWA approved in May 2023 will be billed in full when the procurement POs are issued for Digester Covers ($1,503,953)
3 (Add - Allowance) Pump sludge from Digesters 1 & 2 to headworks, Clean Digesters 1 & 2 $300,000
Total Authorizations previously approved - Scope transferred to Biosolids Upgrades Project ($1,835,953)
ATTACHMENT 2 – Risk Register
ATTACHMENT 3 – 60% Design Drawings & Specifications
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