Agenda packet — Water Subcommittee, March 26, 2026

Thursday, March 26, 2026
City of Rialto
Council Chambers
150 S. Palm Ave.

Rialto, CA 92376
Rialto City Hall, Council Chambers, 150 S. Palm Ave. Rialto CA 92376 Water Subcommittee
Mayor Joe Baca
Mayor Pro Tem Ed Scott
Regular Meeting - Final
REGULAR MEETING - 10:00 AM
Water Subcommittee Meeting
The City Council creates Subcommittees as needed to accomplish the work of the Council .

Subcommittees are categorized as either, Standing or Ad Hoc. Subcommittees do not replace the work or decision -making process of the City Council as a whole and are used to provide feedback to staff. Subcommittees enable City staff to obtain early feedback from representative members of the City Council on issues affecting public policy prior to their presentation, as necessary, to the full City Council.

Any discussion or feedback expressed or received at a Subcommittee meeting should not be construed or understood to be a decision by or for the City Council. Further, any feedback the Subcommittee may make to the City Council is based on information possessed by the Subcommittee at the time the feedback is made and may be revised or amended upon receipt by the Subcommittee of additional or newer information.
1 March 26, 2026Water Subcommittee Regular Meeting - Final HOW TO REVIEW THE AGENDA. ALL AGENDAS ARE POSTED IN THE CITY HALL ADMINISTRATION BUILDING (150 SOUTH PALM AVENUE, RIALTO) AT LEAST 72 HOURS IN ADVANCE OF THE MEETING. ALL WRITINGS THAT

RELATE TO AN OPEN SESSION AGENDA ITEM AT A REGULAR SUBCOMMITTEE MEETING DISTRIBUTED TO ALL OF THE SUBCOMMITTEE WILL BE MADE AVAILABLE AT THE SAME TIME BUT AT LEAST 72 HOURS BEFORE A REGULAR MEETING, FOR PUBLIC INSPECTION ON THE CITY ’S WEBSITE AT www .rialtoca.gov AND IN THE OFFICE OF THE CITY CLERK LOCATED AT 290 WEST RIALTO AVENUE, RIALTO, CALIFORNIA (909-820-2519) FROM 7:00 A.M. TO 6:00 P.M., MONDAY THROUGH THURSDAY. ANY PERSON HAVING A QUESTION CONCERNING ANY AGENDA ITEM MAY CALL ADMINISTRATION /UTILITIES DIVISION AT (909-820-2689) TO MAKE INQUIRY CONCERNING THE NATURE OF THE ITEM DESCRIBED ON THE AGENDA.

ITEMS ADDED TO THE AGENDA. CONSISTENT WITH THE RALPH M. BROWN ACT, ADDITIONAL ITEMS MAY BE

ADDED TO THE AGENDA AND ACTED UPON BY THE SUBCOMMITTEE ONLY IF IT IS CONSIDERED TO BE A “SUBSEQUENT NEED” OR “EMERGENCY” ITEM AND IS ADDED BY A MAJORITY VOTE. MATTERS RAISED

UNDER ORAL COMMUNICATIONS MAY NOT BE ACTED UPON AT THAT MEETING OTHER THAN AS PROVIDED ABOVE.

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SPECIAL ASSISTANCE TO PARTICIPATE IN THIS MEETING, PLEASE CONTACT THE PUBLIC WORKS DIRECTOR AT (909) 421-7279. NOTIFICATION 48 HOURS PRIOR TO THE MEETING WILL ENABLE THE CITY TO MAKE REASONABLE ARRANGEMENTS TO ENSURE ACCESSIBILITY TO THIS MEETING (28 CAR 35.102-35.104 ADA Title II).

HOW TO ATTEND THE MEETING.
(1) Members of the public may attend the meeting in person.

HOW TO MAKE A PUBLIC COMMENT.
(1) Appear at the meeting and speak during the public comment period. There is a 5-minute time limit. (2) You may submit a public comment in writing to the Rialto Utility Authority by email at [email protected].

Call to Order By:

ROLL CALL

ORAL COMMUNICATIONS/PUBLIC COMMENTS

APPROVAL OF MINUTES
WS-26-0192 Minutes from the January 29, 2026 Meeting
Minutes from the 01 29 2026 meetingAttachments:

PRESENTATIONS
WS-26-0193 Water Subcommittee Meeting - January 2026 Monthly Operations Report Presentation
WSC_Monthly Operations Report Presentation_March 2026Attachments:

REPORTS/DISCUSSION ITEMS

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2 March 26, 2026Water Subcommittee Regular Meeting - Final WS-26-0177 Staff requests that the Water Subcommittee provide feedback on Amendment No. 4 to the Professional Services Agreement with Rod LeMond, CPA, in the amount of $120,000, for continued independent financial advisory and accounting services to support the Rialto Utility Authority’s financial management, reporting, and compliance obligations. (ACTION).

Rod LeMond - Financial Advisory Proposal_2026-2027Attachments:

WS-26-0191 Staff Requests the Water Subcommittee Review and Provide Feedback on Amendment No. 3 to the Professional Services Agreement with Enplanners Inc ., in the amount of $11,155, for additional Environmental Survey Services Associated with the Dr. June Hayes and Deborah Roberston Habitat Nature Center, formally known as the Rialto Habitat Nature Center (RHNC) Project. (ACTION).

Enplanner_Lake Rialto Contract Proposal 3_Gnatchatcher Surveys Proposal_ 01-28-26Attachments:

WS-26-0194 Staff Request Water Subcommittee Provide Feedback on the Proposed 2024 - 2027 Labor Component Reset and Associated Staffing Adjustments under the Rialto Water Services Operations and Maintenance Subcontract. (ACTION)
Key Performance Indicator (KPI) Collection System Technicians.pdf Veolia’s Labor Reset Memorandum.pdf
Veolia’s Collection System Technicians Justification .pdf Veolia’s Laboratory Technician Justification.pdf

5. Capital Projects Coordinator Justification.pdf
Attachments:

WS-26-0185 Staff Request Water Subcommittee Provide Feedback on a Final Construction Work Authorization with Rialto Water Services, as Operated by Veolia North Operating Services, Inc. for the Sycamore Ave Sewer Trunk Line Project. (ACTION)
FCWA Write Up for Sycamore Ave Trunk Line Project - MARCH 2026 (DRAFT).docx PW Moratorium Map.pdf
Attachments:

WS-26-0182 Provide the Water Subcommittee with a Status Update on the River Ranch Sewer Force Main Relocation Project, which is Being Constructed in Coordination With the River Ranch Residential Development by Lennar Homes.

River Ranch Sewer Force Main Relocation Plans (Tract Map No. 20092)Attachments:

WS-26-0186 Staff Request Water Subcommittee Provide Feedback on Closed -Circuit Television Inspection Findings for the Wastewater Collection System . (ACTION)
Wastewater CCTV Action Plan FINAL 9-13-2025.pdfAttachments:

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3 March 26, 2026Water Subcommittee Regular Meeting - Final WS-26-0188 Staff Request Water Subcommittee Provide Feedback on Fontana Union Water Company Shares. (ACTION)
Rialto Share Data.pdfAttachments:

DIRECTOR OF UTILITIES
WS-26-0189 Director of Utilities Updates:

1. Veolia’s Monthly Operations Reports (MOR):
a. February 2026 (reporting period December 2025)
b. March 2026 (reporting period January 2026)

2. RUA Funding Awarded as of March 2026 and Project Funding List

3. RUA Federal & State Funding Priorities Flyer

4. Senior & Low-Income Utility Discount programs
Veolia Monthly Operations Report_Reporting Period December 2025_FEBRUARY REPORT Veolia Monthly Operations Report_Reporting Period_January 2026_MARCH REPORT RUA Funding Awarded as of March 2026 and Project Funding List RUA Federal & State Funding Priorities Flyer
Senior & Low-Income Utility Discount Programs
Attachments:

UPCOMING MEETING/FUTURE DISCUSSION ITEMS

ADJOURNMENT

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4 City of Rialto
Legislation Text
File #: WS-26-0192, Version: 1, Agenda #:

CITY OF RIALTO

SPECIAL MEETING OF THE WATER SUBCOMMITTEE
January 29, 2026 - 11:00 A.M.

MINUTES

The Special meeting of the Water Subcommittee of the City of Rialto was held in the Civic Center Council Chambers located at 150 S. Palm Avenue, Rialto, California 92376, on Thursday, January 29, 2026.

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CALL TO ORDER Call to order at 11:00 A.M.

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ROLL CALL Senior Administrative Analyst Nicole Hemmans took the roll call.

Subcommittee Members / City Staff:

Mayor Joe Baca
Mayor Pro Tem Ed Scott
Tanya Williams, City Manager
Eric Vail, City Attorney
Sachin Chawla, Director of Utilities
Paul Truffa, Firefighter/Paramedic
Toyasha Sebbag, Assistant to the City Manager
Nicole Hemmans, Senior Administrative Analyst

Additional Attendees:

Jason Pivovaroff, Dopudja & Wells Consulting, Inc.

Joey Soto, Soto Resources
John Schats, Legal Consultant
Peter Luchetti, RWS/Table Rock
Marlon Brosco, RWS/Veolia
Soheil Sadighi, RWS/Veolia
Chandrasekar Venkatraman, RWS/Veolia

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PUBLIC COMMENTS Public comment received on January 29, 2026:

♦ None.

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6 2

CLOSED SESSION The Water Subcommittee convened in Closed Session at 10:01 a.m. to discuss one closed session item. The Closed Session concluded at 10:25 a.m. No reportable action was taken.

APPROVAL OF MINUTES

WS-26-0044 – Approval of the October
30, 2025, meeting minutes.
(ACTION)

Mayor Baca asked if there were any comments pertaining to the minutes.

♦ None

o0o

NEW BUSINESS ITEMS

WS-26-0048 – Presentation from Soto
Resources Presentation and Request for
Feedback on Amendment 5.

Staff Request that the Water Subco mmittee receive a presentation from Soto Resources and provide feedback on amendment 5 to the professional service agreement.

Questions & Comments
♦ Mayor Pro Tem Scott inquired why the Septic-to-Sewer Project is classified as a pilot project and whether this designation was assigned by SAWPA?

o Ms. Sebbag explained it is called a Pilot Project because it represents a smaller -scale project than what was
originally identified and serves as a component of the overall funding request.

♦ Mayor Baca requested an update on the status of the Septic -to- Sewer Project.

o Ms. Sebbag reported that the agreement was presented
to the SAWPA Board in November 2025, at which time
the project was accepted. She further noted that the
agreement is currently being finalized with the State in order to include the project in Proposition 1, Round 2
large grant funding portfolio.

♦ Mayor Baca inquired whether the City has engaged in
discussions with its state legislative representatives regarding the Septic-to-Sewer Project?

o Ms. Sebbag stated that she will confirm whether SAWPA has presented the project to Senator Reyes.
♦ Mayor Baca emphasized that the City Council and City Manager should actively engage in lobbying efforts with state legislators to help advance these projects.
7 3

♦ Mayor Pro Tem inquired whether the Emergency Generator Project supports water or wastewater facilities and questioned the delay in its progress, noting that other agencies have already completed generator installations while the City has yet to advance the project despite prior discussions?

♦ Mayor Baca advised that some of the delays are due to 1) Changes in City Manger, and 2) Council Members have not been able to Lobby for funding.

♦ The Mayor Pro Tem inquired whether the Emergency Generator Project was included on the Project List submitted to DC in connection with FEMA funding?

o City Manager Williams confirmed that the generator
project was not included in last year’s submittal and that no submission has been made to DC this year.

♦ City Manager Williams requested that staff verify the cost for City Well 3A, noting her understanding that the project’s actual cost may have increased beyond the amount shown to be 4.5 million.

o Mr. Chawla confirmed that the funding allocation was
recently revised, resulting in a reduction in the grant funding.

♦ Mayor Baca suggested adding a column to the Funding Chart to indicate whether the funding source is federal or state.

The Water Subcommittee’s feedback was to move Soto Resources ’ Amendment No. 5 forward to the City Council for formal approval.

o0o

WS-26-0046 – Update on Capital
Improvement Projects.

Staff and RWS/Veolia provided an update to the Water Subcommittee on the Capital Improvement Projects.

Questions & Comments
♦ Mayor Pro Tem requested that a PowerPoint slide be included in future CIP updates.

♦ Due to the Urban Water Institute Conference being scheduled during the same week as the February Water Subcommittee meeting, the Water Subcommittee meeting originally set for February 26, 2026, will be canceled.

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♦ Staff was directed to send the Final Construction Work Authorization (FCWA) for the Sycamore Avenue Trunk Line Project and the PRV Project to Mayor Baca and Mayor Pro Tem for review before the items are presented to the City Council for approval.

♦ Mayor Pro Tem requested that staff provide an update at the next Water Subcommittee meeting on the River Ranch project,
including the relocation and force main issues, and how the project will support the upcoming residential in the same development.

o0o

WS-26-0740 – Director o f Utilities
Update.

Sachin Chawla provided the following update to the Water Subcommittee:

1. Veolia’s Monthly Operations Reports (MOR):
• November 2025 (reporting period September 2025)
• December 2025 (reporting period October 2025)
• January 2026 (reporting period November 2025)

Questions & Comments
♦ Mayor Baca requested that an Executive Summary be included in the Monthly Operations Report going forward.

♦ Mayor Pro Tem suggested that any projects experiencing delays be brought to the Water Subcommittee’s attention as soon as staff become aware of them.
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UPCOMING MEETINGS/OTHER

DISCUSSION ITEMS
The next Water Subcommittee meeting is scheduled for Thursday, March 26, 2026, at 10:00 a.m.

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ADJOURNMENT The meeting adjourned at 12:24 PM.

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10 City of Rialto
Legislation Text
File #: WS-26-0193, Version: 1, Agenda #:

For Water Subcommittee Meeting March 26, 2026
TO: Water Subcommittee Members
APPROVAL: Sachin Chawla, Director of Utilities
Water Subcommittee Meeting - January 2026 Monthly Operations Report Presentation City of Rialto Printed on 3/20/2026Page 1 of 1
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11 Water Subcommittee Meeting
January 2026 Monthly Operations Reports
March 26, 2026
12 Customer Service
Performance
● Service Level: 93% of Calls Answered within
30 seconds.
● Call Volume & Demand: 1,208 calls handled
in the month
● Billing Accuracy: 99.8% (Issues Identified &
Corrected)
● Digital Adoption: 57% (E-billing participation
increased 13% YOY)
● Water & Wastewater Revenue Collected:
$3.2 M
● Notices regarding the rate adjustment,
effective March 2026, were included in the
monthly bills distributed in February 2026
13 Water

EXECUTIVE SUMMARY
Highlights of this months Water O&M report
include the following:
• The water distribution network
achieved compliance with all permit
requirements.
• No sample anomalies that
require secondary sampling.
• No significant issues with water
availability. The purchasing of water
remained consistent and daily
equalization tanks levels remained at
anticipated volume for customer
availability.
• The Preventative Maintenance
Program, as well as Valve
Exercising, continues to identify
areas of focus for our Routine Repair
and Replace
Water
Operations
Performance
JANUARY 2026
Highlights of January 2026 Water Operations &
Maintence::
 EW-1 Well Out of Service due to pump failure
 The water distribution network achieved
compliance with all permit requirements
 No sample anomalies that required secondary
sampling
 No significant issues with water availability.
 The Preventative Maintenance Program, as
well as Valve Exercising, continues to identify
areas of focus for our Routine Repair and
Replacement.

Combined Remedy Treatment Plant
14 Water Operations
Performance
January 2026 Water Production by Source (AF)
Valve Turning Progress: On the basis of
information collected in 2019, Veolia now has a
baseline assessment of all valves and has initiated
a new cycle of valve exercising. Five valves were
exercised in the month of December.
15 Wastewater Operations Performance
● Major equipment out of service was Aeration Basin #3 and the Sludge Holding Tank.
● Collection System preventive and routine maintenance was performed. The system had no overflows.
● NPDES discharge compliance parameters were achieved
16 Wastewater Operations Performance

WA ST EWA T E R T RE A T MENT P L A NT MONT HL Y CHE MICA L CONSUMP T ION Chemical P urpose J anury 2026
(Gal)
December 2025
(Gal) Chang e (Gal)% Chang eT rend Impact Operational Insig ht S odium
Hypochlorite Disinfection 33,416 30,904 2,512 8.10% ↑ ? C ost Increase Increased disinfection demand (likely higher flows or seasonal impact)
S odium
Bisulfite Dechlorination 12,583 11,054 1,529 13.80% ↑ ? C ost Increase C orresponds with higher chlorine use; maintaining compliance
F errous
C hloride
Odor /
P hosphorus
C ontrol
3,709 4,070 -361 -8.90% ↓ C ost Decrease Possible improved influent quality or optimized dosing
Polymer
(G ravity B elt)
S ludge
T hickening 344 496 -152 -30.60% ↓ C ost Decrease R educed solids load or improved thickening efficiency
Polymer
(B elt Press) Dewatering 764 834 -70 -8.40% ↓ C ost Decrease S light reduction in sludge production or improved performance
Alum T ertiary
F iltration 0 1 -1 -100% ↓ ⚪ Operationally Neutral T ertiary treatment not required this month
17 Capital Project Performance
Solids Upgrade Project – A progress meeting was held on February 4, 2026, to address final design comments. AECOM submitted the 100% Issued for Construction (IFC) design on February 26, 2026, with potholing and mobilization to follow.

Timeline:

Design Completion: February 2026
Construction Start: Q2 2026
Estimated Completion: 2027
Advanced Metering Infrastructure Project (AMI) – Concord Services began the citywide meter audit on February 11, 2026. There are currently no outstanding RFIs.

Veolia is coordinating with the City on communications to support successful delivery and meet grant requirements.

Timeline:

Meter Audit: Q1-Q2
Installation Phase: Q2-Q4 2026
Project Completion: Early 2027
Sycamore Ave Sewer Trunk Line (Phase 2) – Bids were received on March 20, 2026.

Construction is anticipated to begin in May 2026, aligned with the Morgan Elementary summer recess.

Timeline:

Construction Start: May 2026
Substantial Completion: Late 2026
Final Completion: Early 2027
Projects are being strategically phased to align with funding, operational priorities, and systemwide coordination: (1) Etiwanda Ave Water Improvement Project; (2) Acacia Ave Trunk Line Project (Phase 3); and (3) City Well 3A 18 CWEA SARBS
Veolia Awarded Wastewater Medium Plant of the Year!
19 Questions ?
20 City of Rialto
Legislation Text
File #: WS-26-0177, Version: 1, Agenda #:

FOR: Water Subcommittee Meeting March 26, 2026
TO: Honorable Water Subcommittee Members
APPROVAL: Sachin Chawla, Director of Utilities
FROM: Nicole Hemmans, Senior Administrative Analyst
Staff requests that the Water Subcommittee provide feedback on Amendment No. 4 to the Professional Services Agreement with Rod LeMond, CPA, in the amount of $120,000, for continued independent financial advisory and accounting services to support the Rialto Utility Authority’s financial management, reporting, and compliance obligations. (ACTION).

RECOMMENDATION
Staff recommends that the Water Subcommittee provide feedback on Amendment No. 4 to the Professional Services Agreement with Rod LeMond, CPA, in the amount of $120,000, for continued independent financial advisory and accounting services to support the Rialto Utility Authority’s financial management, reporting, and compliance obligations.

BACKGROUND:

On February 4, 2025, the Rialto Utility Authority (RUA) entered into a Professional Services Agreement (PSA) with Rod LeMond, CPA, to provide specialized financial advisory services related to the Authority’sagreement with Rialto Water Services RWS) for the provision of contract water and wastewater services.

The Consultant was initially engaged through sole-source procurement due to his expertise in water and wastewater financial management and concession-style utility agreements. His original assessment focused on reviewing the terms and arrangements associated with the Concession Agreement and related Trust Agreements, including evaluation of the financial structure and flow of funds between the Authority and RWS.

Following the initial engagement, the Authority approved several amendments to the agreement to expand the scope of services and continue advisory support as additional financial management needs were identified:
v Original PSA (February 4, 2025): Not-to-exceed $25,000. v First Amendment (May 22, 2025): Increased total contract amount to $50,000 and expanded services to include review and documentation of Concession Agreement financial structures, internal reporting processes, and accounting matters associated with Combined Remedy. v Second Amendment: Increase total compensation to $75,000 City of Rialto Printed on 3/20/2026Page 1 of 4
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21 File #: WS-26-0177, Version: 1, Agenda #:
v Third Amendment: Increase total compensation to $100,000 During the course of this engagement, Mr. LeMond has assisted staff in evaluating accounting practices, refining financial reporting processes, supporting budget integration efforts, and providing advisory services related to the financial provisions of the Concession Agreement and associated trust account requirements. Mr. LeMond’sinvolvement also included assisting the team in recovering approximately $1 million in unpaid invoices related to the Combined Remedy efforts and is currently engaged in addressing outstanding issues among the four parties to the agreement.

Because Mr. LeMond was initially retained to analyze the financial terms and operational structure of the Concession Agreement, he has developed a strong understanding of the Authority’scontractual arrangements and financial reporting structure. This institutional knowledge has allowed him to provide effective guidance to staff on complex financial matters associated with the Concession Agreement and related trust accounts.

ANALYSIS/DISCUSSION:

The Utilities Department continues to manage a number of complex financial reporting, budgeting, and compliance responsibilities related to the Authority’swater and wastewater operations and its contractual relationship with Rialto Water Services. Based on the staff’sexperience working with Mr.

LeMond and the evolving financial management needs of the Utility, staff is proposing Amendment No. 4 to continue these advisory services.

Under the proposed Scope of Work, Mr. LeMond would continue to provide independent financial management and accounting advisory services, including:

Scope of Work:

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22 File #: WS-26-0177, Version: 1, Agenda #:

These services will help support staff improve financial reporting processes, ensure compliance with contractual and financial obligations, and strengthen financial oversight of utility operations.

ENVIRONMENTAL IMPACT
The requested action is not a “Project”as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a Project means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. According to Section 15378(b), a Project does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.

GENERAL PLAN CONSISTENCY
Approval of the proposed action also complies with the following City of Rialto Guiding Principles, General Plan Goals and Policies:

Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.

LEGAL REVIEW
The City Attorney’s Office has reviewed the staff report.

FINANCIAL IMPACT
Operating Budget Impact
The proposed amendment will increase the contract amount by $120,000 for a total not-to-exceed contract amount of $220,000. Sufficient funding of $48,000 is available in Fund 5680 Account No.

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23 File #: WS-26-0177, Version: 1, Agenda #:
contract amount of $220,000. Sufficient funding of $48,000 is available in Fund 5680 Account No. 56807960-52011. A new appropriation is needed in the amount of $72,000 in Fund 5680 Account No. 56807860-52011.

Capital Improvement Budget Impact
There is no impact on the capital improvement budget with this action.

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24 Rod LeMond Financial Consultant March 2, 2027 INDEPENDENT FINANCIAL MANAGEMENT AND ACCOUNTING ADVISORY SERVICES Engagement Term: April 1, 2026 – March 31, 2027 Rod LeMond Mr. Sachin Chawla Director of Utilities City of Rialto, CA Thank you for the opportunity to propose continued financial and accounting advisory services to the Utility. I. INTRODUCTION I have provided independent financial management and accounting advisory services to the Utility since February 2025. My initial engagement focused on understanding and documenting the financial terms and related compliance requirements of the Utility’s Concession Agreement and related Trust Agreements. As that work progressed, additional areas of financial management review and advisory support were identified. During the course of this engagement, my work has included: • Assessment of accounting processes and reporting routines at both the Concession and City levels, including payables, receivables, and financial reporting. • Development and refinement of structured reporting routines. • Advisory support related to Combined Remedy billing and related compliance matters. • Direction and assistance with Concession-level budget development and integration of Concession financial elements into the City’s broader budget framework. Much of this effort remains in process. Certain initiatives require continued refinement and implementation, while others involve ongoing coordination and reporting responsibilities. This proposal formalizes continuation of advisory services to support that ongoing work during the proposed engagement term, including anticipated related assignments as identified by management. 25 Rod LeMond Financial Consultant II. SCOPE OF SERVICES 1. Implementation of Accounting Function Improvements Continued refinement and implementation of previously identified accounting process improvements and reporting routines, including supporting staff as redesigned workflows are translated into operational practice. 2. Financial Reporting and Oversight Development Ongoing refinement of structured reporting routines, including: • Quarterly budget-to-actual reporting. • 680 Fund financial reporting. • Monthly trustee cash balance and transfer review. • Standardized report-out formats for management review. 3. Combined Remedy and Complex Arrangement Support Advisory support related to Combined Remedy billing, payables, and budgeting matters, including participation in discussions regarding invoicing practices and financial compliance. 4. Concession Agreement and Trust Accounting Advisory As-needed advisory support related to financial management and compliance matters arising under the Concession Agreement and related trust accounting activity. 5. Annual Budget Process Direction and Support Direction and assistance with Concession-level budget development and integration of Concession financial requirements into the City’s annual budget process. 6. Capital Financing Advisory Support Provide analytical support to the Utility Department in its evaluation of capital financing alternatives for water and wastewater infrastructure projects. Support may include review of financing options, analysis of financial implications, preparation of supporting financial information, and coordination of information required for financing evaluations 7. Additional Financial Management Matters Advisory support for related financial management matters identified during the engagement term, including ad hoc assignments and emerging issues as directed by the Utility Director or designated management. Such matters are expected to be consistent with the general advisory scope described above. III. CONTINUITY AND INSTITUTIONALIZATION Over the past year, I have provided advisory support to the Utility across multiple areas of financial management, including accounting process review, reporting refinement, 26 Rod LeMond Financial Consultant interpretation of Concession and Trust Agreement financial provisions, coordination related to Combined Remedy matters, and budget integration at both the Concession and City levels. Some of this work has involved structured assessment and process refinement, while other efforts have arisen in response to evolving operational and contractual circumstances. Many of these matters remain ongoing. Certain initiatives require continued refinement and implementation of improved practices, while others benefit from consistent interpretation of governing agreements and familiarity with established financial structures and reporting routines. Continuation of advisory support during this period promotes stability, informed decision-making, and efficient progression of work already underway. This engagement is intended to provide that continuity as the Utility advances its financial management responsibilities during the proposed term. IV. ENGAGEMENT STRUCTURE AND COMPENSATION Hourly Rate: $210 per hour. Anticipated Effort: Approximately 45–50 hours per month during the engagement term of April 1, 2026 through March 31, 2027. Total fees shall not exceed $120,000 during the engagement term without prior Board authorization. The anticipated level of effort and fee estimate are based on the scope of services described above and the reasonably expected continuation of related advisory matters. Should the nature or volume of services materially expand beyond what is presently contemplated, any adjustment to the not-to-exceed amount would require prior Board authorization. NATURE OF ENGAGEMENT Services provided under this engagement are advisory in nature. I will serve as an independent consultant and not as an employee, officer, or agent of the Utility. Responsibility for management decisions and policy determinations remains with management. I will rely upon information provided by management and will not be engaged to examine, audit, review, or independently verify such information unless specifically agreed to in writing. 27 Rod LeMond Financial Consultant TERMINATION This engagement may be terminated by either party, with or without cause, upon one week (7 calendar days) written notice. Compensation shall be due only for services performed through the effective date of termination. ACCEPTANCE Accepted and approved: __________________________________ Director of Utilities, City of Rialto, CA Date: _____________________________ __________________________________ Rod LeMond, CPA Independent Financial Consultant Date: _____________________________ 28 City of Rialto
Legislation Text
File #: WS-26-0191, Version: 1, Agenda #:

For Water Subcommittee Meeting March 26, 2026
TO: Water Subcommittee Members
APPROVAL: Sachin Chawla, Director of Utilities
FROM: Nicole Hemmans, Senior Administrative Analyst
Staff Requests the Water Subcommittee Review and Provide Feedback on Amendment No. 3 to the Professional Services Agreement with Enplanners Inc., in the amount of $11,155, for additional Environmental Survey Services Associated with the Dr. June Hayes and Deborah Roberston Habitat Nature Center, formally known as the Rialto Habitat Nature Center (RHNC) Project. (ACTION).

RECOMMNEDATION
Staff recommends that the Water Subcommittee Review and Provide Feedback on Amendment No. 3 to the Professional Services Agreement with Enplanners Inc., in the amount of $11,155, for additional Environmental Survey Services Associated with the Dr. June Hayes and Deborah Roberston Habitat Nature Center, formally known as the Rialto Habitat Nature Center (RHNC) Project.

BACKGROUND
On June 15, 2022, the Rialto Utility Authority (RUA) entered into a Professional Services Agreement (PSA) with Enplanners, Inc. to provide environmental consulting services related to the preparation of an Initial Study/Mitigated Negative Declaration (IS/MND) and supporting technical studies for the RHNC project. Following the initial engagement, the Authority approved to expand the scope of services to support additional needs identified:

Amendment No. 1 (September 12, 2023) expanded the scope of work to include additional CEQA Plus documentation, technical studies, and tribal consultation assistance associated with the RHNC Project.

Amendment No. 2 (April 28, 2025) authorized additional regulatory permitting and processing services required to obtain approvals from resource agencies necessary for implementation of the RHNC Project.

ANALYSIS/DISCUSSION
As the project progresses through environmental review and permitting, additional biological surveys are required. Amendment No. 3 authorizes Enplanners, Inc. through its subcontractor Carlson Strategic Land Solutions (CSLS), to conduct focused coastal California gnatcatcher (CAGN) surveys for the project area due to the presence of designated critical habitat within proximity to the project site.

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29 File #: WS-26-0191, Version: 1, Agenda #:

The scope of work includes:

1. Literature review of prior reports and databases.

2. Protocol breeding season surveys conducted between March 15 and June 30.

3. Preparation of a results report to be submitted to the U.S. Fish and Wildlife Service.

4. Project Management and Coordination with City Staff.

GENERAL PLAN CONSISTENCY
Approval of the proposed action also complies with the following City of Rialto Guiding Principles, General Plan Goals and Policies:

Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.

LEGAL REVIEW
The City Attorney’s Office has reviewed the staff report.

FINANCIAL IMPACT
Operating Budget Impact
The proposed amendment will increase the contract amount by $11,155 for a total not-to-exceed contract amount of $271,741. This will require a new appropriation in Fund 5680 Account No. 56807860-52011.

Capital Improvement Budget Impact
There is no impact on the capital improvement budget with this action.

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30 PO BOX 960 LAKE ARROWHEAD, CA 92352 (951) 289-5233 [email protected] WWW.ENPLANNERS.COM 1/28/26 (CIRIA2202 Lake Rialto Contract Amend 3 - 01-28-26.docx) January 28, 2026 [email protected] Sachin Chawla, Director of Utilities City of Rialto 150 S. Palm Avenue Rialto, CA 92376 Via email: [email protected] Via email: [email protected] Subject: Contract Amendment No. 3 for Professional Services Related to Focused Coastal California Gnatcatcher Surveys for the Rialto Habitat Nature Center Project (Project CIRIA2202) Dear Mr. Chawla: Enplanners submits this third contract amendment request for the Rialto Habitat Nature Center (RHNC) Project. This request involves focused coastal California gnatcatcher (CAGN) surveys for the Project. The tasks will be performed by our subconsultant Carlson Strategic Land Solutions (CSLS). Generally, the scope of work involves efforts related to a literature review, protocol breeding season surveys, and report preparation. The CSLS letter proposal provides a detailed scope of work and cost estimate, and is included as Attachment A. SCOPE OF WORK The tasks described in Attachment A will be performed in accordance with the “Proposal to Prepare an Initial Study/Mitigated Negative Declaration for the Lake Rialto Habitat Management and Community Open Space Project” dated May 19, 2022, authorized June 15, 2022. These tasks include: 1. Literature Review – this task includes a review of databases and prior reports in the area. 2. Protocol Breeding Season Surveys – all suitable habitats will be surveyed for CAGN. According to the CAGN protocol, six surveys must be conducted between March 15 and June 30, with each survey separated by one week. 3. Reporting – According to the protocol, a report of the results must be submitted to the USFWS within 45 days from the last survey. COST ESTIMATE The tasks described above will be performed on a time-and-materials basis and billed monthly not to exceed $11,055.00, in accordance with the “Proposal to Prepare an Initial Study/Mitigated 31 Contract Amendment No. 2 Rialto Habitat Nature Center Project 1/28/26 (CIRIA2202 Lake Rialto Contract Amend 3 - 01-28-26.docx) 2 Negative Declaration for the Lake Rialto Habitat Management and Community Open Space Project” dated May 19, 2022, authorized June 15, 2022. Total charges include $10,050.00 in CSLS’s charges plus $1,005.00 in Enplanners charges. The following table summarizes the cost estimate for each task. Task Cost Estimate Task 1: Literature Review and notification letter (CSLS) Task 2: Focused Surveys (CSLS) Task 3: Results Report (CSLS) Task 4: Project Management and Meetings with City (Enplanners) Total Subconsultant Fees $10,050.00 Total Enplanners Fees $1,105.00 Total Amendment No. 3 $11,155.00 Original Contract $68,075.00 Amendment No. 1 $119,586.00 Amendment No. 2 $72,925.00 Amendment No. 3 $11,155.00 Original contract plus Amendments 1, 2 and 3 Total $271,741.00 AUTHORIZATION Enplanners and CSLS can begin work upon your authorization. As noted by CSLS, the surveys should be scheduled as soon as possible and no later a start date of March 10th. Upon receipt of notice to proceed and subsequent change order, work will start immediately. If you have questions or need additional information, please feel free to contact me at (951) 289-5233 or [email protected]. Sincerely, Raymond V. Hussey, AICP President Attachment: Proposal for Focused coastal California gnatcatcher Surveys for the Rialto Habitat Nature Center Project, CSLS, January 27, 2026 32 CARLSON STRATEGIC LAND SOLUTIONS, INC.

Carlson Strategic Land Solutions | 27134A Paseo Espada, Suite 323, San Juan Capistrano, California 92675

January 27, 2026

Sachin Chawla
Toyasha Sebbag
City of Rialto
Transmitted via email

Subject: Proposal for Focused coastal California gnatcatcher Surveys for the Rialto Habitat Nature Center Project

Dear Sachin and Toyasha:

Thank you for providing Carlson Strategic Land Solutions (CSLS) the opportunity to submit this proposal for focused costal California Gnatcatcher (CAGN) surveys. Based on conversations with the US Fish and Wildlife Service, focused CAGN surveys are being requested due to the critical habitat occurring within 2 miles of the Project site. The focused CAGN surveys will be conducted by a USFWS permitted biologist.

The scope of work includes:

1. Literature Review – this task includes a review of databases and prior reports in the area.

2. Protocol Breeding Season Surveys – all suitable habitats will be surveyed for CAGN.

According to the CAGN protocol, six surveys must be conducted between March 15 and June 30, with each survey separated by one week.

3. Reporting – According to the protocol, a report of the results must be submitted to the USFWS within 45 days from the last survey.

Given the timing and demand for surveys, the surveys should be scheduled as soon as possible to hold a spot and work (literature review) must begin on March 10 th.

Below is our proposal to conduct those tasks.

Task Costs

1. Focused Protocol CAGN (6) Surveys
• Literature Review and notification letter
• Focused Surveys
• Results Report
$10,050

We bill monthly based on time and materials only for the hours worked with invoices due upon receipt, in accordance with the following billing rates.

• President - $245
• Project Manager - $175
• Field Biologist - $135

33 CAGN Scope Proposal
January 27, 2026

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Carlson Strategic Land Solutions | 27134A Paseo Espada, Suite 323, San Juan Capistrano, California 92675 If our hourly assumptions exceed actual time spent, our billing will only reflect the hours worked on the task. If our assumptions underestimate a task due to project changes, we will submit a change order prior to proceeding. We strive to work quickly a nd efficiently to create a successful project as cost effectively as possible.

Miscellaneous expenses, such as reprographics, Federal Express, photo processing, and postage are billed as reimbursable expenses for the actual cost. Thank you for the opportunity to submit this proposal and look forward to working with you. Please conta ct me at 949-289- 3625 with any questions.

Sincerely,

Peter K. Carlson
President

I hereby authorize and approve the proposal described above and authorize work to begin immediately.

______________________________________________ Date__________________________ Name and Title

34 City of Rialto
Legislation Text
File #: WS-26-0194, Version: 1, Agenda #:

For Water Subcommittee Meeting, March 26, 2026
TO: Water Subcommittee Members
APPROVAL: Sachin Chawla, Director of Utilities
FROM: Toyasha Sebbag, Assistant to the City Manager
Staff Request Water Subcommittee Provide Feedback on the Proposed 2024 - 2027 Labor Component Reset and Associated Staffing Adjustments under the Rialto Water Services Operations and Maintenance Subcontract. (ACTION)

RECOMMENDATION
Staff recommends that the Water Subcommittee provide feedback on the proposed 2024 - 2027 Labor Component Reset and associated staffing adjustments under the Rialto Water Services Operations and Maintenance Subcontract.

Articles VIII and XIV of the Concession Agreement establish the compensation framework for wastewater and water services, including the Labor Component. Sections 8.11 and 14.11 of the Agreement require that the Labor Component be recalculated every fourth (4th) Contract Year using the methodology defined in the Operations and Maintenance Subcontract.

Under the CA and Operations and Maintenance Subcontract (OMS), the Periodic Reset recalculates the Labor Component using a formula-based methodology that includes:

1. The average annual Labor Expense for the immediately preceding four (4) Contract Years, adjusted as provided in the CA;

2. An Additional Labor Adjustment reflecting reasonably anticipated changes in Labor Expense during the succeeding four (4) Contract Years due to operational needs, regulatory requirements, or system changes;

3. Application of the Contractor Charge to the adjusted Labor Expense to determine the updated Labor Component; and

4. Execution of a Contract Administrative Memorandum (CAM) showing all the scope and staffing changes and calculations to capture retroactive adjustments and labor compensation going forward.

The previous reset covered the period 2020-2023 and required RUA to review Veolia’s labor expenses and evaluate any requested staffing adjustments necessary to support contractual City of Rialto Printed on 3/20/2026Page 1 of 5
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35 File #: WS-26-0194, Version: 1, Agenda #:
expenses and evaluate any requested staffing adjustments necessary to support contractual obligations and operational requirements.

No additional positions were approved during the 2020-2023 reset period. As a result, several staffing requests accumulated and were included in the current 2024-2027 Labor Reset submission.

As part of the current submission, Veolia requested the addition of four (4) new positions to support operational, regulatory and capital improvement requirements across the wastewater collections system and laboratory functions.

ANALYSIS/DISCUSSION
Staff conducted a comprehensive review of Veolia’s Labor Reset submission, including:
· Historical labor expense data for 2020-2023
· Historical labor adjustments since the beginning of the concession and effectiveness of positions added and deleted
· Operational workload metrics
· Regulatory compliance requirements
· Position justification memoranda submitted by Veolia
· System growth and infrastructure changes
· Industry operational practices and safety standards
During the review process, staff also evaluated current wastewater system operations, including preventive maintenance activities, lift station inspections, CCTV inspections, emergency response activities, and regulatory laboratory compliance.

Overall system operations remain stable and compliant; however, staff confirmed that several operational areas are experiencing increasing workload demands, particularly due to system expansion, additional lift stations, and increased regulatory compliance requirements.

As part of the 2024 Labor Reset, Veolia requested approval of the following four (4) positions:

1. Two (2) Collection System Technicians

2. One (1) Laboratory Technician

3. One (1) Capital Projects Coordinator
Collection System Technicians
Veolia requested two additional Collection System Technicians citing:
· Increased system workload
· Additional lift stations added since 2020
· Expanded CCTV inspection requirements
· Increased DigAlert responses
· Sewer system growth due to development
· Safety requirements for two-person CCTV and jetting operations Attachment 1 summarizes the workload and operational capacity of the current four-person sewer collections team based on standard industry productivity assumptions. Each technician provides approximately 150 productive hours per month (1,800 hours annually), resulting in a total monthly City of Rialto Printed on 3/20/2026Page 2 of 5
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36 File #: WS-26-0194, Version: 1, Agenda #:
approximately 150 productive hours per month (1,800 hours annually), resulting in a total monthly capacity of approximately 600 labor hours.

Current operational activities including lift station inspections, sewer cleaning, CCTV inspections, DigAlert responses, emergency callouts, and asset inspections require approximately 800 labor hours per month, creating an estimated 200-hour monthly workload deficit under current staffing levels.

Adding two additional Collections Technicians would increase operational capacity to approximately 900 labor hours per month, allowing the City to expand preventive maintenance activities, improve DigAlert response times, and support additional workload associated with system growth and new lift stations. The additional staffing would significantly reduce the operational workload gap while improving system reliability and response readiness.

Laboratory Technician
Veolia requested the addition of one (1) Laboratory Technician due to new regulatory requirements associated with the 2016 TNI Standard adopted by California ELAP, which took place in 2024 and increases documentation, auditing, and quality control responsibilities for certified laboratories. These requirements include:
· Additional internal laboratory audits
· Secondary data validation requirements
· Expanded training and certification obligations
· Technical Manager coverage requirements
Staff determined that these regulatory requirements represent a credible Change in Law justification under the Concession Agreement and that the additional laboratory position is necessary to maintain laboratory certification and ensure continued compliance with state regulatory standards. The additional position will also allow the laboratory to perform more process-control testing in-house, providing operators with faster analytical results to support day-to-day wastewater treatment operations.

Capital Projects Coordinator
Veolia also requested approval of a Capital Projects Coordinator to assist with project planning, permitting coordination, and capital program management activities. The request was based on the increasing volume of capital improvement and development-related projects requiring coordination, regulatory review, and engineering documentation.

While staff acknowledges the increasing complexity of capital project coordination, the Periodic Reset provisions of the Concession Agreement (Sections 8.11 and 14.11) are intended to address labor expenses associated with the operation and maintenance of the Utility Facilities, rather than capital program management functions.

Activities such as capital project planning, engineering coordination, and permitting support are typically associated with capital improvement program delivery rather than routine operations and maintenance responsibilities under the OMS. Accordingly, staff determined that the requested City of Rialto Printed on 3/20/2026Page 3 of 5
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37 File #: WS-26-0194, Version: 1, Agenda #:
position does not fall within the scope of the Labor Component reset methodology.

Staff therefore recommends that the request for a Capital Projects Coordinator be evaluated separately through the appropriate contractual or administrative process, including potential consideration as part of capital program management support rather than the operations-based Labor Reset.

Staff Recommendation
After completing the review of Veolia’s Labor Reset submission, staff recommends approval of:
• Two (2) Collection System Technicians
· One (1) Laboratory Technician
Staff recommends rejecting the Capital Projects Coordinator position under the labor reset adjustment and having RWS/Veolia fund that position through the capital projects approval process as and when needed. Also, staff is in the process of checking the calculations for the labor reset and waiting for additional information from RWS/Veolia to complete the analysis. Once that is complete staff will bring the CAM back to the WSC for feedback or take it to the council for approval.

This determination is based on the findings documented in Attachment 2 Veolia’s Labor Reset Memorandum.

ENVIRONMENTAL IMPACT
The proposed action is not a “Project”as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project”means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. According to Section 15378(b), a Project does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.

GENERAL PLAN CONSISTENCY
Approval of the proposed action also complies with the following City of Rialto Guiding Principles, General Plan Goals and Policies: “OurCity government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.”

LEGAL REVIEW
The City Attorney's Office has reviewed the staff report.

FINANCIAL IMPACTS
Operating Budget Impact
The proposed 2024 Labor Component Reset adjusts the contractor labor baseline in accordance with the methodology established in the CA and OMS.

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38 File #: WS-26-0194, Version: 1, Agenda #:

Consistent with staff’srecommendation, approval of the three (3) positions (two Collection System Technicians and one Laboratory Technician) will result in an estimated ongoing annual increase of approximately $286,000, allocated to the wastewater utility. On average, each position represents a fully burdened cost of approximately $90,000 to $100,000 annually.

This increase represents a modest adjustment to the overall labor component (approximately 3-4% systemwide) and a targeted increase to wastewater operations of approximately 7%, reflecting that all positions are dedicated to wastewater services. The increase is primarily associated with regulatory compliance requirements and operational workload related to system growth and infrastructure expansion.

Detailed financial impacts, including retroactive adjustments and future year allocations, will be documented through a CAM following completion of the labor reset review.

Capital Improvement Budget Impact
There is no impact on the Capital Improvement Budget.

Licensing
This action does not require a business license.

ATTACHMENTS

1. Key Performance Indicator (KPI) Collection System Technicians

2. Veolia’s Labor Reset Memorandum

3. Veolia’s Collection System Technicians Justification

4. Veolia’s Laboratory Technician Justification

5. Capital Projects Coordinator Justification
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39 Collection Technician Time Allocation – Current vs Proposed Staffing Assumptions
1,800 annual hours per employee
150 hours/month available per technician
Current staffing: 4 technicians (600 hrs/month capacity) Proposed staffing: 6 technicians (900 hrs/month capacity) Activity Current Monthly
Workload Hours
Proposed Monthly
Workload Hours Justification
Lift Station Inspections 220 220
Industry practice requires daily inspection of critical lift stations. With 9 stations currently and additional stations planned, inspections consume significant staff time due to travel, inspection logs, and troubleshooting requirements.

Additional staff reduce per-technician workload and improve response readiness.

Sewer Cleaning (Jetting) 160 220
Utilities typically target 5–7 year preventive cleaning cycles for gravity sewer systems. Additional staff allow expanded preventive cleaning coverage, reducing blockages, odors, and sanitary sewer overflows (SSOs).

CCTV Inspections 80 140
Industry best practice recommends 5–10 year CCTV
inspection cycles depending on system condition. Dedicated CCTV crews require two operators (camera truck operator and safety/traffic control). Additional staff allow the camera van to operate more consistently and improve asset
condition monitoring.

DigAlert Responses 120 120
DigAlert response volumes of 150–200 tickets per month are consistent with growing urban systems. While the total
workload remains constant, additional staff improve
compliance with state response time requirements and
reduce delays in marking utilities.

Emergency Callouts 10 10
Emergency response events such as blockages or overflows occur intermittently. Additional staff do not necessarily reduce frequency but improve response readiness and
reduce after-hours overtime exposure.

Manhole / Asset Inspections 60 100
Industry practice recommends routine inspection of
manholes and critical assets. With additional staff, the City can expand inspections to improve preventive maintenance and reduce infrastructure failures.

System Growth / New Sewer Lines 40 60
System expansion increases asset inventory and maintenance obligations. While KPI data is limited, additional staffing supports increased infrastructure monitoring and
maintenance.

GIS / Infrastructure Tracking 30 40
Asset management and GIS updates are necessary to
maintain accurate system records and support capital
planning. Increased inspection activity generates additional documentation workload.

Complaints / Customer Service 30 30
Customer complaints and odor investigations occur
periodically. Additional staff primarily improve response time rather than reducing workload.

Training / Safety / Administrative Duties 50 50
Utilities must maintain required safety training, confined space certification, and operational documentation. These activities remain relatively constant regardless of staffing levels.

TOTAL 800 990
Worklaod Hours Current Capacity (4 staff) 600
Operational Surplus / (Deficit) (200)
Workload Hours Proposed Capacity (6 staff) 900
Operational Surplus / (Deficit) (90)
40 MEMORANDUM

DATE: October 9, 2019

TO: Rolf Ohlemutz, General Manager, Rialto Water Services (RWS)

FROM: Veolia Rialto Management Team

SUBJECT: Periodic Reset of Labor Component

I. Labor Reset Requirement in the Operations and Maintenance Subcontract

According to the Operations and Maintenance Subcontract (OMS, Section 8.11 & 14.11) and Concession Agreement (CA, Section 8.11 & 14.11) , the periodic reset of the labor component is required at the conclusion of every fourth Contract Year. The OMS states that the first Contract Year ended on December 31, 2012 and provides a mechanism for calculating the Labor Expense during the abbreviated first Contra ct Year. This in effect means that the labor reset was scheduled for January 1, 2016, and is overdue. Since almost four years have come and gone, Veolia is proposing that the 2016 and 2020 resets be combined. Thus, the combined resets shall commence January 1, 2020 and the next reset will be effective January 1, 202 4 based on Labor Expense for the 20 20 to 2023 Contract Years and anticipated changes for 2024 to 2027.

The purpose of the labor reset is to include flexibility in the long -term OMS and acknowledge labor cost variances based on the prior four and next four years of the operation. At the same time, the labor reset interval provides predictability and budgetary stability to the City for 4 -year periods. Through the CA, Veolia was provided staffing levels originally envisioned in the form of an organizational chart (Schedule L) and an initial fixed labor fee. The CA also provided Veolia with the autonomy to add staff for op erational necessity and service level expectations , follow Prudent Industry Practices and/or to be in conformance with a pplicable laws as required under OMS Sections 5.1(b) and 11.1(b) and CA Sections 5.1(b) and 11.1(b) . It is important to note that Schedule L was provided merely as a guideline and documentation of initial conditions as it was very necessary to ramp up staffing in order to achieve the desired service level.

The Sections of the OMS governing the reset are 8.11 (WW) and 14.11 (Water). For purposes of this memo, the Sections pertaining to Wastewater are referenced; however, the operative provisions of Wastewater and Water are the same.

Following the conclusion of every fourth (4 th) Contract Year, the Wastewater Labor Component shall be reset to an amount that is equal to the sum of the following: (i) the average annual Wastewater Labor Expense during the immediately preceding four (4) Contract Years, as adjusted in accordance with Section

8.7; plus (ii) an adjustment based on the anticipated changes in the Wastewater Labor Expense that Contractor reasonably believes are likely to be incurred during the succeeding four (4) Contract Years (“Wastewater Additional Labor Adjustment”); plus (iii) the Contractor Charge with respect to the subtotal of the foregoing clauses (i) and (ii).

The 2016 reset includes the averages for the preceding four Contract Years of Labor E xpense (2012-2015) and anticipated next four years (2016-2019) of labor expense as detailed in the contract language. The 2020 reset includes the averages for the preceding four Contract Years of Labor Expense (2016-2019) and anticipated next four years (2020- 2023). For purposes of computing the labor expense, the definition used in the OMS applies:
“Labor Expense” means all costs and expenses incurred by Contractor to provide labor consistent with the Staffing Plan that is associated with (i) the operation of the Utility Facilities, (ii) the performance of Maintenance, (iii) Repair Cost, (iv) Replacement Cost, (v) Operating Repair and Operating Replacement; 41 and (vi) any other Services except for that portion of Services related to design and construction as noted below. The term “Labor Expenses” includes costs and expenses associated with the recruitment, training, tuition reimbursement, continuing education, licensing of personnel, payment of salaries, wages and benefits (inclusive of all taxes, insurance, medical, disability and health benefits, pensions, retirement plan costs, contributions, assessments, sick tim e, vacation time, overtime, premium time, holidays, and continuing education), temporary labor, expense reimbursements, termination and severance payments, all of which are consistent with Contractor’s standard employment practices, any collective bargaini ng agreement or prevailing market rates in the water and wastewater treatment industry for Southern CA.

The labor reset not only includes the average annual Labor Expense during the preceding four years and an adjustment based on the anticipated changes in the Labor Expense in the next four years, but it also includes the Contractor Charge for overhead and profit fixed at 18%. According to the OMS, the definition of Contractor Charge states:

“Contractor Charge” means the portion of the Compensation to be paid to Contractor in the form of a mark-up that is applied to certain amounts due as Compensation (prior to application of the Contractor Charge) as expressly set forth in this O&M Subcontract in the total amount of eighteen percent (18%), that is compri sed of ten percent (10%) for costs associated with overhead and administration and eight percent (8%) for profit.

In short, each labor reset for both Water and Wastewater is the average of the past four years of Labor Expense, plus an adjustment based on the anticipated changes made to the Labor Expense in the next four years, plus an 18% charge applied to the total. The result is compared to the current fixed labor component received by Veolia per the contract. If the labor reset is higher than the Labor Component of Veolia’s fixed fee, then the fixed fee is increased.

II. Veolia Staffing Changes since the Start of the Concession Agreement

The staffing plan in Schedule L of the OMS and CA included 41 employees and is attached as Exhibit A. Once Veolia was on the job it was discovered that there was one (1) additional existing employee not represented in Schedule L . This existing position is a maintenance tech position at wastewater, which the employee has been working at the WWTP since 2005. It is assumed that the Fixed Fee for Labor included in the OMS was based on the existing actual labor costs.

Accordingly, the current contractual Labor Component can be assumed to cover the staffing level of 4 2 employees. For the analysis below, 42 employees will be considered the original staffing level.

As of the date of this memo, the staffing plan shows 51 employees, which Exhibit B contains the current organizational chart and its progression since Schedule L . For the purposes of this Labor Reset , five (5) positions have been removed and/or not included in the current organizational chart. They are : (1) a Water Operator who is assigned to the direct contract with the City to handle perchlorate O&M ; (2) the “CSR for IVR” , (both “Water Operator for p erchlorate O&M” and “CSR for IVR” have been removed from the org chart outright and are positions that will not be filled again), (3) & (4) the Capital Program Manager and Assistant positions are not included in the labor reset, and (5) the IPP Manager whi ch will be considered separately. There has been an increase of Significant Industrial Users in the MIPP program, effectively increasing the level of MIPP labor needed to support the program. MIPP labor is covered under a separate letter and proposal. Exhibit C is presented in response to Section 8.11 and 14.11 which states:

For purposes of establishing the amount of any Water and/or Wastewater Additional Labor Adjustment, Contractor shall provide to the Concessionaire reasonable substantiation with respect to the basis for the Water and/or Wastewater Additional Labor Adjustment that is based on Prudent Industry Practices.

Removing these positions from the labor reset reduces the staffing level to 51, i.e. an increase of 9 over the staffing level shown in Exhibit A.

A. Staffing Changes necessary for current service level

The positions outlined in this section are or were 100% dedicated to the Rialto project and play (and have played over the past 4-8 years) a vital role in providing the current service level to the City. Unlike the positions listed in Section III, 42 these positions are not considered part of the ten percent (10%) overhead and administration fee as outlined below (and in Exhibit C).

The Schedule L staffing level presented in the OMS contains a “Capital Program / Asset Manager”. Both capital projects and asset management ramped up to a very high level and a single position for both functions was clearly inadequate.

Asset Management was established with the help of Mel issa Demsky from Veolia, who was considered corporate assistance and does not show up in the organizational chart for the labor reset. Asset Management, after the initial set - up, requires full time assistance to maintain d atabases by entering new information and quality checking of existing entries. It also requires processing of the data to identify high priority capital projects. In the future, the maintenance of a GIS system is expected to be a major and continuous eff ort. These considerations make the Asset Manager the most likely permanent position regardless of the future level of capital improvements. Accordingly, Veolia is treating this position as the successor of the capital projects positions in Schedule L.

The capital projects duties are carried out by the Capital Program Manager and the Capital Program Assistant. The Capital Program Manager and Assistant are funded through the FIP and will in the future be funded as part of a continuing CIP process yet to be determined. For the purpose of this labor reset, the two capital program positions are not counted. Staffing level for the purpose of the labor reset is 51 instead of 53, which is an increase of 8 over the 2012 staffing level (that inadvertently did not include a wastewater maintenance tech position).

The list below includes positions not listed in Schedule L with high-level explanations on their purpose, status, and justifications of why they are absolutely needed. Exhibit C further elaborates on e ach of the added positions and provides in-depth reasonable substantiation . It should be noted that the justification of all of these positions is to a large extent based on the elevated level of activity in recent years due to FIP, ORR, and many operational and procedural improvements. The positions will be continuously re -evaluated and adjustments may be made as repetitive tasks become routine and operational and regulatory challenges become few and far between.

1. WW Maintenance Tech

This position alrea dy existed at the WWTP upon execution of the CA/OMS and was unintentionally missed when Schedule L was created. The employee filling this position has been working at the WWTP since 2005. Schedule L should have included this position, thus making the total staffing level at the onset of the CA/OMS 42, not 41.

2. 3. 4. & 5. Four (4) Water Operators

Upon taking over operations of the Water Department, Veolia inherited a severely undermanned division. In order to meet demands of operations and regulatory/contractual deliverables, Veolia hired all existing City employees and temps in full-time roles. This was a very challenging time and the initial hiring of four (4) additional water operators were vital in providing quality O&M services.
 In 2017, one (1) of these additional operators was assigned to the separate and direct contract with the City for perchlorate (Chino 2 & CR3) O&M services. This operator position was not and will not be backfilled , indicating that the initial high workload in the water division had abated somewhat.  In 2020, another one (1) of these additional operators will be assigned to the prospective separate and direct contract with the City to provide perchlorate (EW -1) O&M services. Upon being reassigned, this operator position will not be backfilled.

6. Water Administrative Assistant

Upon taking over operations of the Water Department, Veolia discovered that the WW Administrative Assistant w as fully utilized and could not take on additional responsibilit ies. With the customer service division splitting off from the water division, it was operationally necessary to hire a separate administrative assistant to provide support for the water and customer service divisions.
43 7. WWTP Lead Operator

This position was added as part of the negotiation with the International Operating Engineers union; however it was not included in the calculation of the union portion of the labor reset. The modifications to the service fee under the union portion only included the negotiated rates with the International Operating Engineers union in relation to the Collective Bargaining Agreement. This position was necessary to ensure that there is at least one (1) lead operator on -site during working hours at all times as well as to oversee certain field duties.

8. Purchasing Manager

This position was created to assist with managing all purchases across the Rialto project, which includes: services, materials, chemicals, parts and anything else that needs to be purchased. As a single point of contact for all purchases across the entire operation, this position has vastly improved the critical flow of transactions for daily operations, OR&R and FIP matters. This position may be reviewed as needed.

9. Customer Service Supervisor

In 2015, it had become apparent that the Customer Service Manager could not handle all reporting, customer complaints, database issues, and day-to-day issues.

10. & 11. Assistant General Manager & Accountant

These positions are necessary to cover the man y record-keeping, reporting and other various requirements inherent in the CA which did not exist prior to 2013. Further, the AGM has become an integral part of day -to-day operations (i.e. focusing on team management, development & implementation of SOPs, optimizing operations, addressing daily issues, assisting with compliance/regulatory matters, and ensuring all deliverables are met), which affords the General Manager to focus on City liaison, regulatory, and political issues.

These positions may be r eviewed as needed. As the CA changes from the initial set -up phase to more of a routine, the GM may be able to take back functions currently performed by the AGM. It is less likely for the Accountant to have a reduced workload because RWS is currently taking on more of an accounting role than anticipated in the CA.

More detail as to why these positions are absolutely needed and do not fall under the 10% overhead and administration fee can be found in Exhibit C.

III. Veolia Corporate Support and 10% Labor Overhead & Administration Fee

According to the definition in the OMS, the Contractor Charge means:

“the portion of the Compensation to be paid to Contractor in the form of a mark -up that is applied to certain amounts due as Compensation as expressly set forth in this O&M Subcontract in the total amount of eighteen percent (18%), that is comprised of ten percent (10%) for costs associated with overhead and administration and eight percent (8%) for profit.”

Overhead and Administration Fees cover multiple overhead items related to labor which are not included in the fixed fee for labor expenses. They include primarily : payroll, benefits administration, recruiting, relocation of personnel to project sites, legal s upport, safety support and training, among other administrational costs. Overhead costs include procurement support, technical support, as well as all other regional, national, and corporate support.

Veolia provides additional support to the Rialto proje ct without additional compensation in the form of assistance from various internal business units, including but not limited to:
 Director of Business Support
 Director of Asset Management
44  Director of Customer Service
 Director of Health & Safety
 Regional Manager of Health & Safety
 Director of Structuring
 four team members from the Technical Development Group (including multiple Directors)  Director of Procurement
 Regional Pretreatment Manager
 Compliance Managers
 Directors and Managers of Finance and Accounting
 InfoSend Managers
 Director of Communications
 Director of Human Resources as well as multiple HR Specialists such as recruiters, payroll, & benefits  Fully integrated IT support group

The support these positions provide is critical to the operation s and current level of service . While these positions are not included in the reset, it is important to state the vital role the y play in ensuring the Rialto projects are compliant with health, regulatory and safety standards, staffed adequately, and that a well-developed asset management program is in place.

Veolia’s commitment to the Rialto project goes well beyond the local onsite staffing level support and provides significant added value without itemized inclusion of charges in the labor expense calculations . This kind of support is above and beyond what would be present at most municipal operations. Experts from around the country assist with the successful advancement of the Rialto Facilities. During any given week, there are one to two Veolia corporate-level team members assisting with our water, wastewater and customer service objectives. The assistance from the above listed corporate staff membe rs ranges from process control management and facilities optimization support to onsite safety and compliance training such as confined space entry and AWWA certification classes. Overall, Veolia provides a wide range of behind the scenes support both on and off site. Another example includes Veolia’s state-of-the-art meter testing facilities, which has tested approximately 600 water meters for the City of Rialto at no charge to the City or RWS. This effort confirmed the financial impact of the meter replacement for Rialto specifically and was added to the body of data that will help other municipalities in their decision to replace aging water meters.

When considering the technical, asset manag ement, data management , financial, accounting, purchasing, safety, compliance, administrative, communications, customer service, and community involvement , Veolia supports RWS and the City with more than 5,200 hours a year in additional directly related labor hours, not including corporate support from the executi ve-level team and others. It should be noted that these services are provided on a n as-needed basis and are not withheld if they are found to exceed the Overhead part of the 10% Administration Fee and in effect reduce the 8% profit . In order to understan d and establish the amount of corporate support provided to the Rialto project, Veolia compiled and computed the sum of hours of corporate support provided on an annual basis . The value of this additional corporate support is greater than $1.0M a year, which is in excess of the 10% administration fee.

IV. Comparing Rialto Staffing Levels to other Cities
Veolia originally completed a review of the wastewater and water systems in the areas surrounding the City of Rialto, CA and learned that the Rialto project is understaffed in comparison. This analysis reviewed the budgets and staffing levels per MGD of the following cities: Redlands, San Bernardino, Modesto, Corona, and the Victorville area (Victor Valley). While it is difficult to make a side -by-side comparison, since MGDs (at design capacity) vary between locations, population, service area, and because many city operations throughout California include programs not covered in Rialto (and vice versa), two cities were very close in comparison to Rialto . Modesto and Victor Valley have similar average flows, population and service areas like Rialto and are staffed at approximately 5.33 and 2.91 FTEs per MGD, respectively. While these two communities have much newer wastewater facilities, they appear to be staffed quite a bit higher than the Rialto WWTP, which is staffed at a level of 1.88 FTEs per MGD (1.8 FTE = 22 total FTEs but I believe we have 21 so should be 1.79 now). On the water side, staff numbers fluctuated significantly over the last several 45 years. Prior to execution of the OMS, the water team was staffed by the City at 21 at its highest. Currently, the water team consists of 16 employees, which is comparable to surrounding cities. While the analysis concludes that Veolia is operating at a staffing level below that of surrounding communities, it is because of the streamlined operational practices, corporate support and effective procedures and systems in place that enables Veolia to continue to bring value to the City at a lower labor cost t han would have been realized before the Concession Agreement was in place . A second and separate analysis was recently performed in 2019, the results of which again concludes under service levels for FTEs/1,000 accounts that Veolia is operating the City’s wastewater, water and customer service divisions efficiently as compared to our local counterparts (see Exhibit D).

V. Anticipated Changes in Staffing Levels
There have been discussions about adding and removing positions in the next labor reset. Positions that may potentially be added are as follows:

1. Customer Account Field Auditing Position – This position would be a one to two year temporary position that would audit and verify the approximately 1,650 accounts that border the City of Rialto and may receive partial or full services from the City without providing payment. Scope of services would include planning, field verification, correction, account billing, and collection processes as identified. Currently these accounts are being addressed slowly as time allows and as identified through routine processes. If approximately 5% of the identified accounts are determined to receive services from Rialto, with two -years of back -billing, the position would be more than covered through these recovered revenues.

2. Water Conservation Specialist – Dependent upon future state conservation regulations, The City may be in need of a water conservation specialist, as Veolia has recommended to RWS and the City in prior years (this service is not currently include in scope).

3. GIS Technician – This position would assist by developing the City's existing ESRI geographic information system (GIS) that the City wishes to expand and better utilize. The GIS tech would help by making maps and customized applications in order to read and interpret said maps, manipulate and understand land data, and manage data entered into ESRI.

Any of these resources could be added to the labor reset projections or managed through a separate change in scope agreement. The cost of doi ng so under the reset for the City is equivalent to reimbursement of union wages paid and the cost of employee benefits plus the 18% Contractor Charge.

Potential future staff reductions include (in order of likelihood):

1. One Lab Technician may be removed in the next labor reset in 2024 which will be based on the results of the current costs savings initiative under contracted lab services

2. One and possibly two Water Operator(s) if there is a full AMI implementation

3. Upon successful completion and implementat ion of the Facility Improvement Project (FIP) S.1, one (1) WWTP Operator position will be reviewed during the next labor reset in 2024

4. The Purchasing Manager position will be reviewed during the next labor reset in 2024

5. The Assistant General Manager position will be reviewed during the next labor reset in 2024

VI. Labor Reset Calculation according to Concession Agreement

As specified in the OMS, the first step in the calculation of the Labor Reset is to compute the average labor expense for the prior four years , excluding the additional MIPP labor due to scope change . Included are the costs allowed by the OMS, i.e. salaries and wages, benefits, temp labor, recruiting, etc. These costs a re then valued in 2016 dollars (per Section 8.7) using the actu al escalation rates per the OMS for each year. Since this Labor Reset is combining the 2016 and 2020 resets, the same steps are completed for each separately. Thus, the costs in the 2020 Labor Reset Adjustment are valued in 2020 dollars (per Section 8.7) using the actual escalation rates per the OMS for each year.

46 For each Labor Reset calculation, the actual costs incurred each year are escalated based on the annual escalators.

Then, costs in 2016 and 2020 dollars respectively are summed and then averaged. The combined average for Water and Wastewater in 2016 is $4,078,172.77 and $5,522,672.94 in 2020, which fulfills the requirement of starting with the average of the prior four years of actual Labor Expenses.

To calculate the average of the next four years, Veolia applied actual data for 2016-2019 data and estimated data for 2020-2023. Veolia envisions that these two combined labor resets would take effect on January 1, 20 20 and would be reset again on January 1, 2024.

While the negotiated CBA increase of $390,019 has already been approved by the City Council and incorporated into Veolia’s fixed fee, an increase as calculated below that still requires ratification. The 2016 Labor Reset would have resulted in a decrease in the labor component fee, while the 2020 Labor Reset would have resulted in an increase in the labor component fee. The difference between these two amounts is the increase in which Veolia seeks approval for the combined labor resets.

In addition t o the approved CBA increase, an increase of $ 251,189.85 to the labor component is established based on the actual calculation to date. This increase is subject to the January 1st escalation resulting in $ 251,107.95 for 2021, $251,203.88 for 2022, and $ 254,557.31 for 2023. This calculation does not cover any increases in labor due to scope adjustments as necessary for the MIPP program , which is addressed in a separate memorandum. The numbers in the calculation are subject to change based on respective decision-makers rulings. In addition, the numbers in the calculation will change as the actual 2019 labor costs used are from October 2019, but the reset calls for end of year 2019 amounts. Thus, the increase amounts provided above are tentative and will be supplemented with end of year 2019 actual labor costs and re-calculated.

III. Conclusion

After calculating the periodic reset of the labor component per the terms of the OMS, Veolia has determined that an increase of $251,189.85 to the labor component , in addition to that already covered by the Union increase adjustment should be invoiced for 2020. Veolia looks forward to reviewing the labor reset calculation with you and appreciate your 47 recognition of the value that Veolia has provided to the project . This reset is based on reasonable calculation s with flexibility in the interpretation of the labor reset language, while remaining true to the original intent and spirit of the ability to reset costs such as labor for the best interest of the partnership. The proposed combination of the 2016 and 2020 labor resets into a single step has been reviewed by Art Griffith of FG Solutions, Stephen Dopudja of West Yost, and various high level staff of the City, RWS, and Veolia. The spreadsheet containing the labor reset calculations may be used for any future labor resets, whether for a single 4-year period or two.

48 Exhibit A – O&M Subcontract – Schedule L Staffing Plan

49 1 Four Water Operators – upon taking over operations of the water dept., Veolia inherited a severely undermanned division. In order to meet demands of operations and new regulatory requirements, Veolia hired one operator with higher certification due to DDW’s change in system rating, one operator to handle the valve exercising program as DDW’s sanitary survey in 2011 indicated Rialto was deficient, and two additional operators to address the backlog and current work. One of these operator positions was eliminated in 2017 (reassigned to provide perchlorate O&M to Chino 2 & CR3) and a second shall be eliminated in 2020 (will be reassigned to provide perchlorate O&M to EW-1). 2 Administrative Assistant – Veolia immediately discovered that the WW Administrative Assistant workload was completely full and could not take on additional responsibility. It was operationally necessary to hire a separate administrative assistant to provide support for the water and customer service divisions. This position handles office manager and receptionist functions, which is in addition to the general admin & clerical responsibilities. 3 Assistant General Manager – this position was created out of necessity due to the extreme and complex workload of the GM. In addition to all upper management employees reporting to the AGM, this position is vital as it handles all reporting, developing & implementing SOPs, assisting with regulatory/compliance matters, providing community support, handling dispute resolutions, addressing daily issues, financing/budgeting, union matters, and most importantly ensuring all deliverables are complete in a timely manner. 4 Accountant – this job function was previously provided by City’s Finance Team. The position is necessary to cover the many record-keeping, reporting, and other critical analytical support for Customer Service, OR&R, chemical reconciliation, & inner agency payments. 5 Purchasing Manager – this position was created to assist with managing all purchases across the Rialto project, which includes services, materials, chemicals, parts, etc. The position is valuable as it improves streamlining of processes & critical flow of transactions. 6 CS Supervisor – this position was created to increase the quality of service to both rate payers and the City. Some of the key responsibilities of this position to ensure customer satisfaction are: handle customer complaints, monitor CS agents recorded calls for coaching and improving agent’s communication skills, plan and set agent’s schedules to ensure all agents are available to handle inbound calls and walk in customers in peak hours, review, validate, & approve transactions and adjustments. 7 WWTP Operator Lead – this position was added as part of the negotiation with the union, but was not included in the union portion of the labor reset. This position ensures more effective field operations through proactive field transparency and accountability.

GENERAL MANAGER
ASST. GENERAL MANAGER3
Water Project
Manager
WW
Administrative
Assistant
Water Ops
Manager
Water Field
Supervisor
Operator Lead
Operator
Operator
Operator
Operator
Operator
Operator1 =
Perchlorate
Operator
Operator
Operator
Operator
Operator1
Operator1
Operator1
Capital Program
Manager*
Capital Program
Assistant (EIT)
Accountant4 Wastewater Plant
Manager
Water
Administrative
Assistant2
Wastewater Ops
Manager
Maintenance
Manager
Maintenance
Tech Lead
Maintenance
Tech
Maintenance
Tech
Planner /
Scheduler
Collection
System
Operator
Collection
System
Operator
Collection
System
Operator
Collection
System
Operator
WWTP Operator
Lead
WWTP Operator
Lead
WWTP Operator
Lead7
WWTP Operator
WWTP Operator
WWTP Operator
WWTP Operator
Laboratory
Manager
Laboratory Tech
IPP Manager
Asset Manager* Purchasing
Manager5
Customer Service
Manager
Customer Service
Supervisor6
CSR
CSR
CSR
CSR
CSR
CSR
CSR = IVR

Exhibit B
2012-2019 Rialto Organizational
Chart Progression
50 Exhibit C

This exhibit expands on why the new positions were added to the Rialto project and further elaborates on the high -level explanations outlined in the memo. This section further describes the purpose of each position, why it does not fall under the 10% overhead and administration fee, as well as the level of service each position affords the City of Rialto in administering their water and wastewater utilities. Further, an in -depth analysis is provided outlining the justification for each position based on reasonable sub stantiation. Each position was and still is absolutely necessary due to operational necessity, change in law/scope, and/or prudent industry standards.

1. WW Operator Lead
a. Department: Wastewater
b. Position added: 2016
c. Reasonable substantiation: It was determined that an additional Operations Lead position was necessary at the WWTP to oversee certain field duties, allowing the Project Manager and Operations Manager to focus effectively on big picture items i.e. compliance/regulatory oversight, employee managem ent, S1 project involvement, meetings with City, community leaders, etc.  This position ensures more effective field operations through proactive field transparency and accountability. This position requires a higher level of certification to better assist with process management as well as in-field team leadership.
 As construction of S1 nears, there is anticipation of additional needed coordination efforts with process controls during the major construction effort. This position directly assists with daily process adjustments necessary to maintain regulatory compliance throughout the design, study and implementation of the various OR&R/FIP/CIP projects.
 Directly responsible for effective utilization of the Work Order and PM system, including monit oring reorder reviews to ensure adequate chemical and inventory supply While this position was negotiated and added as part of the Union Labor Reset, it was not included in the calculation of the Union Labor Reset. All that was included in the Union Labor Reset portion was the negotiated rates with the International Operating Engineers union in relation to the Collective Bargaining Agreement. Thus, it has been included in the non-union labor reset portion.

This position is a boots on the ground position h andling day to day wastewater operator activities and responsibilities utilizing his/her wastewater certification. There is no relation to corporate support functions or any overlap.
d. Position’s tenure: Upon successful completion and implementation of the FIP S.1, one (1) WWTP operator position will be reviewed during the next labor reset in 2024 as a potential staff reduction.

2. Customer Service Supervisor
a. Department: Customer Service
b. Position added: 2015
c. Reasonable substantiation: Even prior to Concession Agreement, services provided to the rate payers had lot to be desired. Since Veolia took over the CS operations and move to the new CS building, many incremental actions were taken to increase the focus on customer services. Some of the actions were installation of new phone system, utilizing 3 rd party vendor for bill printing & mailing, online service portal, payment over the phone system and more. Aside from process improvement, customer service supervisor was required to ensure quality of service to both rate payers, RWS and the City. Here are some of key responsibilities and dues to ensure customer satisfaction.  Handle customer complaints and follow up with actions required.  Monitor CS agents recorded calls for coaching and improving agent’s communication skills. 51  Plan and set agent’s schedule and activates to ensure all agents are available to handle inbound calls and walk in customers in peak hours.
 Review, validate & approve transactions & adjustments.  Promote positive work environment, safety and morale for customer service agents who handle challenging phone calls.

Since the Supervisor positions have been implemented, customer service have continued to improve and also allow the customer service project manager to support and focus on City’s r equirements and improving customer service for the future.

This position is an on -site position handling day to day customer service supervisory activities and responsibilities and cannot be handled by corporate support as a majority of the work performed is in-person.

There is no relation to corporate support functions or any overlap. d. Position’s tenure: Due to the reasons stated above, this position is absolutely needed in perpetuity over the length of the CA/OMS, especially to continue providing the high level of service currently achieved.

3. Accountant
a. Department: Admin
b. Position added: 2015
c. Reasonable substantiation : Before execution of the OMS, this job function was provided by the City’s Finance Team. Upon execution of the OMS, Veolia quickly determined that a staff accountant was absolutely necessary to fulfill the financial tracking requirements of the OMS and as necessary under the CA.

For the first couple of years, Veolia hired a temp to handle the duties required of this position. However, after realizing the need for this position for the life of the contract, Veolia decided to hire a full -time employee as it was a much cheaper option for the City than utilizing temps.

Effectively, Veolia worked closely with John Maher, to define the job respon sibilities and determine that an in- house FTE accountant was necessary to perform these essential functions:
 Customer billing collections, payments, closure, reconciliation and GL postings, daily cash receipt deposits and recaps, bank reconciliations (daily & month end), revenue GL reconciliation (daily & month end), monthly trial balances, extra territorial and non-rate revenue billing; RWS/RUA financial dispute resolutions; development of transparent revenue reporting, including SOPs, procedures, contractual tracking, reporting and recordkeeping, financial records retention and departmental audits to identify inefficiencies in practices, policies and procedures.  This position provides critical analytical support for the Customer Service function and ORR – activities which have grown significantly in scope from the execution of the contract.  This position supports the increase in City directed customer service reporting activities (i.e. chemical reconciliation, inner agency agreement payments, other billing disputes, etc.).

This is a full-time position dedicated to the Rialto project, ensuring all financial stakeholders, from customers to RWS and the City are appropriately billed and paid. The position is predominantly focused on handling the City’s monies, tracking them, ensuring the City is always receiving their funds in the correct amount and is applied to the appropriate account. This positions function is predominantly for the benefit of the City and their finances.

The position provides value t o the City by complying with GASBI regulations and auditing requirements to ensure all parties are compliant. The duties and responsibilities performed by this position require a CPA level background and experience.
52 This position is 100% dedicated to the Rialto project and solely spends their time handling Rialto project accounting and reporting. All activities and responsibilities surrounding this position are for the benefit of the City and their finances. Veolia does not have a dedicated accountant for each project, but due to the complexity of the CA, the position is operationally necessary. There is no relation to corporate support functions or any overlap.
d. Position’s tenure: Due to the reasons stated above, this position is absolutely needed in per petuity over the length of the CA/OMS.

4. Purchasing Manager
a. Department: Admin
b. Position added: 2016
c. Reasonable substantiation: This position was created to assist with managing all purchases across the Rialto project.
 This position brings much value as it provides a single point of contact for all purchases for the entire operation. This improves the purchasing procedure by streamlining processes and critical flow of transactions including daily operations, OR&R and FIP.  This position ensures that purch asing procedures are adhered to and that negotiated purchasing agreements are utilized to ensure the lowest spend possible on both internally incurred and externally passed-through expenses.
 As maintenance and repair activities have increased, the need for quality vendor management and invoicing was of absolute need. This position manages the tracking paperwork for complete submittal packages to RWS. Additionally this position ensures that maintenance purchases are managed in the CMMS and properly allo cated to work orders and inventory management to feed the asset management budgeting process.

As outlined above, this is a full -time position dedicated to the Rialto project by establishing & managing vendor contracts, obtains competitive quotes for servic es, materials, chemicals and parts at a local level. The position provides value to the City by ensuring the best price for the most quality work. Further, the position ensures all deliverables are received exactly as purchased prior to providing payment , while maintaining and managing appropriate inventories.

This position is 100% dedicated to the Rialto project and solely spends their time handling Rialto project purchases. All activities and responsibilities surrounding this position are for the ben efit of the City as the purchasing manager is focused on cost savings. Veolia does not have a dedicated purchasing manager for each project, but due to the complexity of the CA (i.e. RRR, OR&R, Maintenance, Capital), the position is operationally necessary. There is no relation to corporate support functions or any overlap. d. Position’s tenure: The Purchasing Manager position will be reviewed during the next labor reset in 2024 as a potential staff reduction if the purchasing workload is significantly reduced.

5. Assistant General Manager (AGM)
a. Department: Admin
b. Position added: 2015
c. Reasonable substantiation : After several years of running the operations under a single GM , Veolia identified the clear operational need for an AGM to handle day-to-day activities. It was determined that the GM had to spend much of his time in liaison with the City, tracking regulatory and political developments, and coordinating with trade organizations and neighboring agencies/municipalities. An AGM was required to handle daily issues, which include but are not limited to: compliance/regulatory matters, permitting, 53 contract administration, providing team management & managerial oversight over the three divisions of water, wastewater and customer service, addressing daily issues, u nion matters, financing/accounting, attend meetings with City, vendors, community leaders, contractors and other daily activities.

Additional AGM duties and responsibilities include:
 This position provides management support for staff, Veolia, RWS and t he City, addresses stakeholder escalations, handles a majority of reporting, legal and insurance claims, leads financing/budgeting, manages contract initiatives, customer and client complaints and concerns, and most importantly ensures timely deliverables.
 This position optimizes processes, reporting, implements energy efficiency initiatives, and provides resolution and oversight of daily client and customer requests.  Implementation of this position has improved financial accountability between Veolia, RWS, and RUA and more timely and effective conflict resolution.
 In addition, this position provides a second knowledgeable high -level decision-making manager for emergencies, day -to-day matters including: union matters, HR matters, City ma tters, providing training to staff, providing health and safety guidance and oversight, and much more that the GM cannot attend to single-handedly.

Since the AGM position was added in late 2015, the service levels have improved exponentially.

This is a f ull-time position necessary for the successful day -to-day operations considering the extreme and complex workload for the General Manager. The position provides value to the City and RWS in multiple ways as listed above, but most importantly provides exce llent coverage over all Rialto matters from a day -to-day perspective including but not limited: community support, managing various stakeholder meetings and discussions, handling dispute resolutions, supporting education campaigns, developing and implement ing SOPs, assisting with regulatory compliance, and providing consistent support to respective managers and employees.

Again, all things the GM simply does not have the time to handle.

This position is a boots on the ground position that is 100% dedicated to the Rialto project and solely spends their time handling Rialto project matters. All activities and responsibilities surrounding this position are for the benefit of the City (i.e. improving finances, optimizing operations, meeting all deliverables an d finding new ways to improve service levels). Due to the sheer number of staff and multiple departments at the Rialto project as well as the complexity of the CA, an AGM position is operationally necessary. There is no relation to corporate support functions or any overlap as the AGM responsibilities differ greatly as outlined above. d. Position’s tenure: The Assistant General Manager position will be reviewed for further consideration during the next labor reset in 2024 as a potential staff reduction.

6. Water Administrative Assistant
a. Department: Water
b. Position added: 2012
c. Reasonable substantiation: Upon taking over operations of the Water Department, Veolia discovered that the WW Administrative Assistant workload was completely full and could not take on add itional responsibility. It was operationally necessary to hire a separate administrative assistant to provide support for the water and customer service divisions.

This position was created to assist with the administrative needs for Water and Customer Service operations.
54  Assists with purchasing needs for the Rialto project.  Assists with preparing the many monthly project reports.  Acting as a liaison with the City in coordinating RWS involvement with City sponsored events.  Provide other administrative support as needed to CS and Water Departments.  Assists with recordkeeping, filing and other organizational activities.  The position serves as the receptionist, answering telephone calls, screens calls and visitors, refers inquiries as appropriate.
 Sort, code, scan, and file correspondence, vouchers, forms, documents, and other materials by a predetermined classification.
 Prepare a variety of documents including letters, memorandums, or other materials from oral direction, rough draft, copy or notes.
 Process online purchases for the department upon approval including supplies.  Perform general clerical duties as assigned.

The Administrative Assistant position has been a key role in supporting the water and customer service departments. The position not only performs office manager and receptionist roles, but effectively has become the right hand to the Project Manager and Ops Manager as outlined above.

This position is an onsite position handling day to day administrative activities and responsibilities for wa ter and customer service departments. There is no relation to corporate support functions or any overlap. d. Position’s tenure: Due to the reasons stated above, this position is absolutely needed in perpetuity over the length of the CA/OMS.

7. Water Operator
a. Department: Water
b. Position added: 2012
c. Reasonable substantiation: This position was added due to a change in law. The position was needed to meet Division of Drinking Water (DDW) system regulatory requirements for a Water Treatment T3 certification. Upon taking over water operations, Veolia discovered the DDW regulatory change in law and quickly realized that current staff did not have the appropriate certifications. Thus, it was necessary to hire an operator with the appropriate certification.
 During the 2011 sanitary survey the system rating was changed from T2 to T3 due to the increased treatment technology at CR3.
 This position requires a higher level of certification to better assist with process management as well as in-field team leadership.

In addition, this position (like the other added water operator positions) was absolutely needed due to operational necessity and prudent industry standards to handle the backlog of work. For over a year prior to the execution of the CA, the water de partment was severely undermanned and was utilizing temps as a band -aide until a contractor could provide O&M services.

55 8. Water Operator
a. Department: Water
b. Position added: 2012
c. Reasonable substantiation: This position was needed for the Valve Exercising Program as identified by DDW in the 2011 sanitary survey as being deficient. This position was added due to operational necessit y and prudent industry standards as discussed below.
 This position ensures industry standards are met by routinely exercising the water system valves.

The program accurately records detail valve information, ensures valve reliability in the event of an emergency, allows staff the ability to immediately isolate water lines for main flushing and main breaks, which in turn results in less overtime. All of these benefits contribute to less water loss and maintain water quality.

In addition, this position (like the other added water operator positions) was absolutely needed due to operational necessity and prudent industry standards to handle the backlog of work. For over a year prior to the execution of the CA, the water department was severely undermanned and was utilizing temps as a band-aide until a contractor could provide O&M services.

This position is a boots on the ground position handling day to day water operator activities and responsibilities (i.e. mainly valve exercising) utilizing his/her water cert ifications. There is no relation to corporate support functions or any overlap.
d. Position’s tenure: Dependent on if there is a full AMI implementation, one and possibly two water operator positions may be reduced from the staffing level.

9. Water Operator
a. Department: Water
b. Position added: 2013
c. Reasonable substantiation: This position was absolutely needed due to operational necessity and prudent industry standards to handle the backlog of work. For over a year prior to the execution of the CA, th e water department was severely undermanned and was utilizing temps as a band -aide until a contractor could provide O&M services. After operating the water department for a number of months, Veolia realized there was still too much backlog and current wor k to get to with current staff at that time. Thus, instead of hiring a temp to assist, Veolia hired a full time operator, which was a cheaper option for the City.

Veolia does not envision this position being needed for the life of the CA, but did need the assistance for the first few years. Upon taking over the operations of EW-1 (perchlorate O&M services) in 2020, this position will be assigned to that separate agreement. Thereafter , Veolia will not backfill that position a nd the position will be eliminated from the staffing level.

This position is a boots on the ground position handling day to day water operator activities and responsibilities utilizing his/her water certifications. There is no relation to corporate support functions or any overlap.
d. Position’s tenure : Veolia will be eliminating this position upon taking over the operations of CR3. This position will be re-assigned to the CR3 separate O&M agreement and will not be backfilled.

10. Water Operator
a. Department: Water
b. Position added: 2013
c. Reasonable substantiation: This position was absolutely needed due to operational necessity and prudent industry standards to handle the backlog of work. For over a year prior to the execution of the CA, the 56 water department was severely undermanned and was utilizing temps as a band -aide until a contractor could provide O&M services. After operating the water department for a number of months, Veolia realized there was still too much backlog and current work to get to with current staff at that time. T hus, instead of hiring a temp to assist, Veolia hired a full time operator, which was a cheaper option for the City.

Veolia did not envision this position was needed for the life of the CA, but did need the assistance for the first few years. As discussed below, upon executing the direct contract with the City to provide perchlorate O&M, Veolia transitioned this water operator role to fulfill the newly created perchlorate operator role. Thereafter, Veolia did not backfill this position and has eliminated it from the current staffing level.

This position is a boots on the ground position handling day to day water operator activities and responsibilities utilizing his/her water certifications. There is no relation to corporate support functions or any overlap. d. Position’s tenure : Upon execution of the separate and direct contract with the City in 2017 to provide perchlorate (Chino 2 and CR3) O&M services, this position was not and will not be backfilled. Thus, this position’s labor costs only appear in the Labor Reset from 7/2013 through 6/2017. After that, the position has been eliminated from the staffing level.

57 Exhibit D – City Staffing Levels Comparison

58 Dear City of Rialto,
Veolia is writing to formally request the addition of two new staff members to the Collections team. We cite a significant increase in workload and growing project demands that are currently exceeding the capacity of our existing team.

Reasons for Justification:

Increased Project Volume:

Over the past several years the collections department has seen on average a 30% or more increase in their day-to-day workload. The additional workload consists of three new lift stations (Valley, El Rancho, and Frisbee) with a fourth new lift station proposed on the northeast corner of Pepper Ave. There has also been an unknown amount of new sewer main lines added to the City as a result of growth within the city limits mainly contributed by residential construction and commercial developments. With the decommissioning of plants 1-4, housekeeping is needed to ensure that there are no vector or odor complaints. All of these factors have created a significant impact on the staff's ability to focus on contractual deliverables.

Critical Gaps:

The additional staff members would address specific gaps in our teams, both on Veolia’s and the city side. Particularly oversight of finished underground constructions and the tracking of new sewer infrastructure to update the GIS in regards to the industry standards [staffing needed for operating the GapVax Vacuum/Jetter truck, CCTV Van, responding to DigAlerts, and station rounds for the nine current lift stations throughout the City of Rialto ].

Proposed Roles and Impact:

Collection Systems Tech:

Maintains the municipal wastewater collection system by cleaning sewer lines of grease, roots, and other debris with vacuum / jetter truck and other rodding equipment.

Performs sewer maintenance work of increasing difficulty and provides technical assistance, coordination, and training to entry-level and temporary staff as assigned.

Evaluates the need for repairs to sewer lines, pipes, pipe connections. 59 Operates the CCTV equipment to search for illegal sewer line usage and to check for overall conditions.

Monitors gas and oxygen levels in confined spaces. Performs routine maintenance to lift station pumps and all auxiliary equipment.

Financial Considerations:
● We have carefully analyzed the potential cost of adding these new positions and believe the increased revenue generated by improved efficiency and capacity will significantly outweigh the additional expense.

Conclusion:

Adding two new staff members to our team is essential to maintain our current service level while maintaining safety for our staff. This increase in staff will give us the opportunity to response to critical callouts during business hours to minimize negative environmental impacts, while preventing potential burnout among our existing staff.

Please let me know if you have any questions or require further details.

Sincerely,
Soheil Sadighi
General Manager
Veolia
60 Dear City of Rialto,
Veolia is writing to formally request the addition of a new staff member for our laboratory. We cite new regulatory requirements and process control needs.

Reasons for Justification
TNI Standard:

The laboratory is certified by CA ELAP which has adopted a new set of standards (2016 TNI Standard) the laboratory must adhere to starting 2024. The laboratory will be audited against this standard this year. In 2023, a third party auditor performed a gap assessment to identify necessary changes for compliance with the new standard. Based on the findings, the lab is required to perform additional internal audits and reviews on a regular schedule, implement new procedures for document review and equipment verifications, and provide additional training to staff. It is also strongly recommended for all laboratory data to undergo a secondary review by an experienced person. The time required for our Lab Supervisor to perform these functions will take away from time that is currently spent on laboratory analysis.

The TNI standard also mandates the lab to designate a Technical Manager to oversee laboratory operations and monitor quality control and validity of laboratory results. This person must meet specific educational and experience requirements.

Our Lab Supervisor is designated to fill this role, however “if [the Technical Manager is] absent for a period of time exceeding fifteen (15) consecutive calendar days shall designate another staff member meeting the qualifications of the technical manager(s) to temporarily perform this function” (2016 TNI Standard Rev. 2.1, Volume 1, Module 2, Section 4.1.7.2).

Process Control:

The laboratory is working to analyze more process control samples in-house that were previously sent to a sublab for analysis. The standard turnaround times for sublabs is 10 business days whereas in-house analysis allows for same day results.

This gives the operators real-time data to make informed decisions and allows them to take a more proactive approach handling wastewater operations. 61 Critical Gaps:

The additional staff member would fill the role as the primary analyst for the lab, allowing our Lab Supervisor sufficient time to ensure the new TNI requirements are met to maintain our certification. They will also be trained to serve as the back-up for the Technical Manager role.

The additional staff will also allow for cross-training with the IPP coordinator. This will allow the program to have an adequate transfer of knowledge and a back-up in place, which is currently not in place.

Proposed Role and Impact:

Laboratory Technician:

Performs routine and non-routine procedures, including analysis and sampling according to specified methodology as described in the SOP Follows QA/QC procedures as outlined in the Laboratory Quality Program Manual and performs corrective action when needed.

Performs monitoring, preventive maintenance, and calibration of on-line meters.

Serves as the Technical Manager for the lab in the absence of the Lab Supervisor (when designated)
Financial Considerations:
● We have carefully analyzed the potential cost of adding this position and believe the ability to maintain our laboratory certification and meet regulatory requirements without compromising on sample analysis will outweigh the additional expense.

Conclusion:

Adding a lab technician to our team will give us the labor needed to meet the new requirements of the TNI Standard while also performing process control analyses that help our operators make critical decisions for the plant. 62 Please let me know if you have any questions or require further details.

Sincerely,
Soheil L. Sadighi
General Manager
Veolia
63 Dear City of Rialto,
Veolia is writing to formally request the addition of one new Capital Projects Coordinator to our team. We cite significant ongoing needs to provide program management, project management, construction management, inspection services, estimating, and project scoping services.

Reasons for Justification:

We have identified a critical need for dedicated project coordination resources to support the City with providing extensive levels of pre-approval work required for capital projects in the early stages before a determination can be made about the feasibility of the project. Currently, this essential work is being handled by the CPM staff, who have not been compensated for the pre- approval work for a majority of the FIP and CIP projects to date.

The Capital Projects Coordinator would be responsible for:
● Project planning and pre-feasibility studies
● Regulatory compliance and support permit applications ● Stakeholder coordination and communication, including Veolia’s subject matter experts ● Reviews developer and contractor design documents for water/wastewater system compatibility
● Budget, schedule and finance use rate development and cost analysis ● Environmental assessments and documentation
● Engineering design review and approval processes
● Grant application support and management
It's important to note that this pre-approval work falls outside the scope of services and fees provided by the CPM team. The project markup fee covers the corresponding effort after projects have been approved and funded, focusing on the execution phase of capital improvements, but not for the pre-work. The extensive preliminary work required before project approval, including needs assessment, regulatory coordination, feasibility studies, and initial planning, is currently being managed by the onsite CPM team. This pre-approval phase is critical to project success, but represents a significant workload that our current O&M staff cannot adequately handle alongside their daily operational duties. Further, the O&M staff do not have the experience and technical expertise to take on the Capital Projects Coordinator responsibilities.

Historically, Veolia has absorbed significant costs for this pre-approval work. This is true for projects that do get completed, but even more impactful when projects do not move forward to construction. It is standard practice for cities to engage consulting firms that charge hourly rates for this type of project development work or retain a dedicated team member to support these activities, recognizing that specialized expertise and dedicated time are required for successful project planning. This position would ensure that capital projects move efficiently through the pre- approval phase, reducing delays and cost overruns while maintaining compliance with all regulatory requirements. The coordinator would serve as a single point of contact for all project stakeholders, improving communication and project outcomes. 64 By establishing this role, we can better serve Rialto Water Services' infrastructure needs while ensuring projects are properly planned, budgeted, and executed. This investment in project coordination will ultimately result in more successful capital improvements and better service to the community.

Conclusion:

Adding one Capital Projects Coordinator to our team is essential to maintain our current service level while supporting the City's growing infrastructure needs. This position will give us the opportunity to provide comprehensive project coordination services, maximize grant funding opportunities, and ensure proper integration of development projects with existing utility systems, while preventing potential burnout among our existing staff.

If approval for this dedicated position is not feasible, we respectfully request that Rialto Water Services allocate a budget to cover this essential pre-approval work on a time and materials (T&M) basis. All efforts would be properly tracked and billed accordingly to ensure transparency and fair compensation for services rendered.

Please let me know if you have any questions or require further details.

Sincerely,
Soheil Sadighi
General Manager
Veolia
65 City of Rialto
Legislation Text
File #: WS-26-0185, Version: 1, Agenda #:

For Water Subcommittee Meeting March 26, 2026
TO: Water Subcommittee Members
APPROVAL: Sachin Chawla, Director of Utilities
FROM: Toyasha Sebbag, Assistant to the City Manager
Staff Request Water Subcommittee Provide Feedback on a Final Construction Work Authorization with Rialto Water Services, as Operated by Veolia North Operating Services, Inc. for the Sycamore Ave Sewer Trunk Line Project. (ACTION)

RECOMMENDATION
Staff recommends that the Water Subcommittee provide feedback on a Final Construction Work Authorization (FCWA) with Rialto Water Services, as operated by Veolia North Operating Services, Inc. for the Sycamore Ave Sewer Trunk Line Project.

BACKGROUND
On March 27, 2012, the City Council and the Rialto Utility Authority (RUA) approved a Concession Agreement (CA) with Rialto Water Services, LP (RWS), operated by Veolia North America. The CA established a framework for capital project delivery, including both specific projects identified at the time of approval and future projects mutually initiated by RUA or RWS through the Final Construction Work Authorization (FCWA) process.

At the June 23, 2025, Water Subcommittee meeting, the Committee reviewed a staff request to post a Notice Inviting Bids (NIB) for the Sycamore Avenue Sewer Trunk Line Project, which had an engineer’sestimated cost of $5.52 million. The Water Subcommittee provided feedback supporting staff’s recommendation to proceed with bidding the project.

ANALYSIS/DISCUSSION
On February 20, 2026, RWS-Veolia issued a Request for Proposals (RFP) / Notice Inviting Bids (NIB) for the Sycamore Avenue Sewer Trunk Line Project utilizing a design-bid-build delivery method.

The project includes installation of approximately 5,200 linear feet of 15-inch sanitary sewer trunk line, 54 linear feet of 8-inch force main, installation of fourteen (14) sewer manholes, utility potholing, and pavement restoration along Sycamore Avenue from Baseline Road to the Sycamore Sewer Lift Station near the Interstate 210 Freeway.

Bids were received on March 20, 2026, with a total of twelve (12) bids submitted, reflecting strong contractor interest and a highly competitive procurement environment. The bids are currently undergoing detailed review by Veolia for responsiveness, contractor qualifications, and compliance with project requirements.

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Based on a preliminary review of the bid results, the apparent low bid inclusive of Veolia 20% fee is approximately $3.6 million. The next lowest bid is approximately $4.1 million, indicating a notable spread between the lowest and second-lowest bidders, and the top bid at $7.7 million, with an average bid of $5.1 million.

Figure 1: Sycamore Ave Sewer Trunk Line Project
The receipt of twelve bids and the spread between the lowest bidders support that the pricing is the result of a competitive bidding process. In addition, the apparent low bid is significantly below the engineer’sestimate of $5.52 million, further indicating favorable market conditions and cost efficiency for this project. The reduced cost is likely attributable to current contractor availability, competitive market conditions, and the defined project scope within an existing public right-of-way.

While this initial spread suggests a competitive low bid, the bid evaluation process is still ongoing. As such, the apparent low bidder is subject to change pending completion of Veolia’s full review, including verification of bid completeness, contractor responsibility, and any potential irregularities.

Staff is seeking Water Subcommittee feedback on advancing the project to the City Council meeting City of Rialto Printed on 3/20/2026Page 2 of 4
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67 File #: WS-26-0185, Version: 1, Agenda #:

Staff is seeking Water Subcommittee feedback on advancing the project to the City Council meeting scheduled for April 14, 2026, where the final bid results and recommended contractor will be presented for approval through FCWA.

Advancing the project on this timeline is important to maintain the proposed construction schedule.

The project includes work near Morgan Elementary School, and significant construction activities must occur during the summer recess window to minimize impacts on school operations and the surrounding neighborhood. Delaying authorization beyond the April Council meeting could jeopardize the ability to begin construction in time to meet this schedule.

ENVIRONMENTAL IMPACT
The proposed action is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302(c) - Replacement or Reconstruction, as the project consists of replacing and upgrading an existing sewer trunk line within an existing public right-of-way involving negligible expansion of capacity. Portions of the work occurring within the existing roadway are also exempt under Section 15301(b) - Existing Facilities.

LEGAL REVIEW
The City Attorney's Office has reviewed the staff report.

FINANCIAL IMPACTS
Operating Budget Impact
There is no impact on the Operating Budget.

Capital Improvement Budget Impact
The Sycamore Avenue Sewer Trunk Line Project is included in the City’s Wastewater Capital Improvement Program (CIP) and is reflected in the adopted Water and Wastewater Rate Model as an identified wastewater infrastructure project with an estimated cost of approximately $5.52 million.

Funding for the project will be provided through an appropriation from the Wastewater Enterprise Fund (Fund 660) reserves to support the capital construction costs associated with the project. The appropriation is consistent with the financial planning assumptions incorporated in the City’sadopted rate model and the long-term capital improvement program for the wastewater utility.

Licensing
This action does not require a business license.

ATTACHMENTS

1. Draft FCWA - Sycamore Ave Trunk Line Project

2. Final 2023 Rialto Pavement Management Plan
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FINAL CONSTRUCTION WORK AUTHORIZATION RIALTO SYCAMORE AVE SEWER TRUNK LINE PROJECT Project History ● 2020 - project need identified through Master Plan by West Yost due to growth in the City

and

hydraulic

modeling

evaluations.
● 2021 - Meetings with the City and the City’s consultant (Dopudja Wells) were held to discuss

flow

capacity

and

three

phased

approach

for

addressing

this

part

the

sewer

system.

○ Phase 1: Baseline Road Sewer Trunk Line Project (completed in 2024) - The scope

work

involved

potholing

for

utility

location,

the

installation

approximately

1,600

linear

feet

(LF)

new

15-inch

sewer

trunk

line,

the

construction

seven

(7)

manholes,

and

complete

pavement

restoration

within

the

project

limits.
○ Phase 2: Current Project (2026) - This phase will involve the installation of approximately

5,200

dedicated

15-inch

sewer

trunk

main

extending

south

from

the

Sycamore

Sewer

Lift

Station

down

Sycamore

Avenue

Baseline

Road,

where

will

connect

with

the

Phase

1 project.
○ Phase 3: Planned project - this future phase is planned to include the installation of

new,

dedicated

15-inch

sewer

pipe

along

Acacia

Avenue,

south

Victoria

Street,

maintain

pipe

size

consistency

with

the

15-inch

pipe

installed

during

Phase

1 and

Phase

2. ● 2023 - Baseline Rd & Sycamore Ave Sewer Trunk Line Project(s) design completed. ● 2024 - Baseline Rd Sewer Trunk Line Project construction completed (Phase 1). ● 2026 - Sycamore Ave Trunk Line (Phase 2) Request for Proposals issued through City’s Planet

Bids

website,

bids

evaluated,

Contractor

selected.

Project Goals and Objectives
The primary goal of this project is to upsize the City of Rialto's sewer main infrastructure along Sycamore

Avenue

between

Baseline

Road

and

the

Sycamore

Sewer

Lift

Station

accommodate

current

and

future

residential

development.

The

existing

8-inch

sewer

line

nearing

capacity

due

ongoing

construction

new

residential

developments

the

north,

necessitating

immediate

infrastructure

improvements

prevent

system

overload

and

ensure

adequate

wastewater

conveyance.

This

project

represents

Phase

2 of

comprehensive

three-phased

initiative

designed

systematically

upgrade

the

city's

sewer

trunk

line

system

and

maintain

consistent

pipe

sizing

throughout

the

network.

Bid Period
On February 20, 2026, Veolia requested sealed bids for the project through the City of Rialto’s Planet

Bids

portal.

12 bids

were

received

March

20,

2026.

Rialto Sycamore Ave Sewer Trunk Line Project
70 DRAFT

Bid Results from March 20, 2026:

Contractor Name Ferreira Construction $2,916,000.00 GRBCon, Inc. $3,283,851.00 Ramona Inc. $3,483,000.00 Valverde Construction $3,500,986.00 CP Construction $3,577,030.00 Stephen Doreck Equipment Rentals $3,589,225.00 Griffith Company $3,885,920.00 Riverside Construction $4,326,400.00 Leatherwood Construction $5,000,700.00 CEM Construction $5,188,250.00 Blois Construction $6,359,453.00 Mike Bubalo Construction $4,657,400.00 Comprehensive

bid

reviews

were

conducted

proposals

received

from

Contractors.

Veolia

recommends

the

selection

Ferreira

Construction

for

the

installation

the

sewer

trunk

line

Sycamore

Ave

they

were

the

lowest,

responsive

bidder.

Scope of Work
The project scope includes, but is not limited to the following:

1. Potholing existing utilities. 2. Installation of approximately 5,200 LF of 15-inch PVC sanitary sewer pipe within project limits. 3. Installation of approximately 54LF of 8-inch force main 4. Installation of (14) - 48-inch sewer manholes, 5. Dewatering, as needed. 6. Sheeting, shoring, and bracing. 7. Subcontractor shall complete and submit a post construction CCTV of the new sewer main, complete. This CCTV shall be from a NASSCO certified firm, with completed report and any recordings provided to Veolia. 8. Subcontractor shall be responsible for installing and maintaining temporary pavement (cold mix) during and after the work is complete . 9. Restoration and repair of existing pavement systems, and surface improvements affected

the

Work,

and

incidentals

for

complete

and

usable

sewer

system.

10. Replacement of traffic loops and restoration of striping, bike lanes, cross walks, and RRPM’s within the project limits, as necessary. 11. Subcontractor shall be responsible for preparing and obtaining approvals on engineered Traffic Control Plans, implementing traffic control throughout the duration of the work.

Rialto Sycamore Ave Sewer Trunk Line Project
71 DRAFT

12. Subcontractor shall be responsible for obtaining an encroachment permit from the City of Rialto. 13. Subcontractor shall be responsible to field fit pipes and appurtenances as required. 14. Subcontractor shall be responsible for pressure testing. 15. Subcontractor shall engage the services of a Geotechnical consultant to provide compaction testing of all backfill and pavement along with compression testing of concrete pours. 16. Contractor shall furnish a complete set of “as built” plans to Veolia at the completion of the Project. conditions discovered during construction.

Proposed Project Timeline & Schedule
● March 20, 2026 - Contractor bids received ● March 26, 2026 - Water Subcommittee approval ● April 14, 2026 - City Council approval ● May - Contractor mobilization and start of project. ● September 30, 2026 - Date for substantial & final completion **Subcontractor shall comply with the Project Schedule Requirement: Minimizing Disruption to Morgan

Elementary

School

detailed

within

the

Special

Conditions.

The

period

for

active

construction

near

the

school

campus

strictly

defined

June

2026

through

August

2026.

Attachments
Cost Estimate See Attachment 1 – Final Cost Sheet with total cost of $3,606,950 and breakdown costs. This includes

Veolia’s

20%

fee

for

design,

construction

management,

insurance,

O&M

(risk,

labor

and

compliance),

CPM

labor,

corporate

overhead

and

profit,

and

owner

held

contingency.

PROJECT COST FOR SYCAMORE AVE SEWER TRUNK LINE PROJECT Q Unit Description Price Total Price 1 Lumpsum Subcontractor cost - Ferreira Construction $2,916,000 $2,916,000 2 NTE Engineering Services During Construction $89,800 $89,800 Total 3rd Party Project Cost $3,005,8005 Veolia fee (20%) $601,160 TOTAL FCWA COST $3,606,960 Notice of Inviting Bids, Request for Proposal (RFP) and Clarifications See Attachment 2 Contractor Firm Proposals Received on March 20, 2026 See Attachment 3 Rialto Sycamore Ave Sewer Trunk Line Project
72 DRAFT

Approved By Rialto City Council/Rialto Utility Authority: Date: Tab Item No. _____ Issued by: Received by: Rialto Utility Authority Rialto Water Services, LLC By: ______________________ By: ______________________ Name:

____________________

Name:

___________________

Title:

_____________________

Title:

____________________

Date:

_____________________

Date:

_____________________

Rialto Sycamore Ave Sewer Trunk Line Project
73 DRAFT

ATTACHMENT 1 – Cost Breakdown Sheet
FCWA Breakdown attached

Rialto Sycamore Ave Sewer Trunk Line Project
74 DRAFT

ATTACHMENT 2 – Request for Bids Package

Rialto Sycamore Ave Sewer Trunk Line Project
75 DRAFT

ATTACHMENT 3 – Contractor’s Bids Received

Rialto Sycamore Ave Sewer Trunk Line Project
76 City of Rialto Page 4
2023 Citywide Pavement Management Program
Final Report – May 10, 2023 Section III

Figure 13 – 2023 Rialto PCI Map
77 City of Rialto
Legislation Text
File #: WS-26-0182, Version: 2, Agenda #:

For Water Subcommittee Meeting [Insert Date]
TO: Water Subcommittee Members
APPROVAL: Sachin Chawla, Director of Utilities
Provide the Water Subcommittee with a Status Update on the River Ranch Sewer Force Main Relocation Project, which is Being Constructed in Coordination With the River Ranch Residential Development by Lennar Homes.

RECOMMENDATION
Staff recommends that the Water Subcommittee receive and file the project update.

BACKGROUND
The River Ranch development (Tract Map No. 20092) includes construction of wastewater infrastructure necessary to serve the new residential community located generally east of Riverside Avenue and north of Highland Avenue.

As part of the project, a sewer lift station was constructed to convey wastewater flows from the development to the City’swastewater collection system. The existing force main currently discharges into a gravity sewer manhole along North Oakdale Avenue. Due to specific field conditions and as- built circumstances that conflicted with the original design intent, resulted in limited hydraulic capacity in the immediate downstream gravity sewer segment along Oakdale Avenue. Combined with the minimal pipe slope associated with existing ground elevations, this configuration resulted in operational constraints and periodic sewer backup concerns reported by residents in the area. Sewer system overflows at the original force main to manhole connection were also reported.

To address this issue, the developer is relocating the discharge point of the force main to a downstream manhole located along East Highland Avenue, where adequate hydraulic capacity is available. (Attached).

ANALYSIS/DISCUSSION
The River Ranch Force Main Relocation Project involves installing a new pressurized sewer pipeline to redirect flows from the River Ranch lift station to a downstream location within the Rialto Utility Authority’s (RUA’s) wastewater collection system.

Improvements include:
· Installation of approximately 600 linear feet of 6-inch sewer force main. · Construction of a new standard precast sewer manhole. · Installation of a 2-inch air/vacuum release valve assembly for proper operation of the force main system.

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78 File #: WS-26-0182, Version: 2, Agenda #:
· Installation of associated fittings and bends necessary to connect the new pipeline alignment. · Trench restoration and pavement repair.

The relocation shifts the force main discharge from the existing manhole on N. Oakdale Avenue to a manhole along E. Highland Avenue, thereby bypassing the flat gravity sewer segment that has constrained system performance.

Once completed, the improvement is expected to:
· Improve hydraulic performance within this portion of the wastewater collection system. · Reduce the likelihood of sewer backups affecting residents along North Oakdale Avenue. · Provide a more reliable discharge point for flows generated by the River Ranch development.

The improvement is being constructed by the developer as part of the subdivision infrastructure requirements and will ultimately be dedicated to the City upon completion and acceptance.

Project Schedule
According to the developer and project engineer:
· Pre-construction meeting: March 2, 2026
· Construction start: March 16, 2026
· Estimated construction duration: Approximately 5 weeks The project is scheduled to be completed by the end of April 2026. All construction activities will occur within the public right-of-way and will be coordinated with the City’s inspection staff and Veolia/RWS.

LEGAL REVIEW
The City Attorney's Office has reviewed the staff report.

FINANCIAL IMPACTS
Operating Budget Impact
Upon completion of construction and acceptance of the improvements, ownership and operational responsibility for the relocated sewer force main will be transferred to the City of Rialto and incorporated into RUA’swastewater collection system as operated by Rialto Water Services/Veolia under the Concession Agreement. The new infrastructure will require routine inspection, preventative City of Rialto Printed on 3/20/2026Page 2 of 3
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79 File #: WS-26-0182, Version: 2, Agenda #:
maintenance, and periodic repair consistent with RUA’s standard wastewater system operations.

Capital Improvement Budget Impact
There is no financial impact on RUA’sWastewater Enterprise Fund associated with this project. The sewer improvements are being constructed by the developer (Lennar Homes) as part of the River Ranch subdivision infrastructure obligations.

ATTACHMENTS
River Ranch Sewer Force Main Relocation Plans (Tract Map No. 20092) City of Rialto Printed on 3/20/2026Page 3 of 3
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80 Underground Service AlertCall: TOLL FREE1-800227-2600TWO WORKING DAYS BEFORE YOU DIGREVISIONS SHEET
FOR:

CITY OF RIALTOPREPARED UNDER THE SUPERVISION OF:DATESEAL-DESIGN ENGINEER DRAWN BY: L.C.DESIGN BY: S.U.CHECKED BY: R.R. OTTEMARK
DATEROBERT OTTE, RCE No. 44120 (Exp. 06/30/27)RECOMMENDED FOR APPROVAL BY ENGINEERING RESOURCES OF CALIFORNIA:DATEJOHN M. BRUDIN, RCE No. 41836APPROVED BY:DATE PLAN No.MATTHEW SCOTT BENNETT, CITY ENGINEER, RCE 65100OF 3 SHEETSBENCHMARK: CITY OF RIALTO No. 036-88DESCRIPTION: CITY OF RIALTO BRASS DISC SET IN PCC BASEElev: 1490.698FOR STREET LIGHT No. 2162617E 17' SOUTH OF CENTERLINEOF RIVERSIDE OUTER HIGHWAY 68' WEST OF CENTERLINE OFCACTUS AVENUE.04/01/1989 INIT.DEPT.

LENNARTRACT 20092
TRACT MAP No. 20092SEWER IMPROVEMENT PLAN© 2024 KIMLEY-HORN AND ASSOCIATES, INC.3801 UNIVERSITY AVENUE, SUITE 300, RIVERSIDE, CA 92501 WWW.KIMLEY-HORN.COMPHONE: (951) 543-9868 01/08/26 LF57SEWER CONSTRUCTION ITEMSQUANTITIES. . . . . . . . . . . . . . . . . . . . . . . . .EA3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1EA . . . . . . . . . . . . . . . . . . .378SF THE QUANTITIES SHOWN HEREON ARE PROVIDED ONLY FOR THE USE OF THE OWNER.PROSPECTIVE BIDDERS SHALL MAKE THEIR OWN DETERMINATION OF THE QUANTITIESREQUIRED, AND SHALL BASE THEIR BID ON THEIR OWN ESTIMATE.NOTE:
1 65INSTALL 6" C-900 PVC SEWER FORCE FITTING, ANGLE AS NOTED3 INSTALL 2" AIRVAC, APCO MODEL 400 OR APPROVED EQUALAND MANHOLE PER DETAIL 5 ON SHEET 3TRENCH PATCH AND PAVEMENT REPAIR PER CITY OF RIALTOSTANDARD NO. SC-231, SEE SHEET 3, AND REPLACE DAMAGED CURBTO THE SATISFACTION OF THE CITY ENGINEERCONSTRUCT STANDARD PRECAST IN-PLACE MANHOLE FORSEWER PER CITY OF RIALTO STANDARD NO. SS-202-0 INSTALL 6" C-900 PVC SEWER FORCE MAIN (RESTRAINALL JOINTS)INSTALL 6" CLASS 150, 10 GAUGE, STEEL FORCE MAIN(FULLY WELD ALL JOINTS)INSTALL OR FABRICATE 6" CLASS 150, 10 GAUGE, STEEL FORCEMAIN BEND, ANGLE AS NOTED24 LF591. . . . . . . . . . . . . . . . . . . . . . . . .EA2 . . . . . . . . . . . . . . . . .

TITLE SHEET1

NOTICE TO CONTRACTOR(S)
LIABILITY ARISING FROM THE SOLE NEGLIGENCE OF THE OWNER OR THE ENGINEER.THE ENGINEER HARMLESS FROM ANY AND ALL LIABILITY, REAL OR ALLEGED, INCONTRACTOR SHALL DEFEND, INDEMNIFY AND HOLD THE CITY, THE OWNER, ANDAPPLY CONTINUOUSLY AND NOT BE LIMITED TO NORMAL WORKING HOURS; THAT THEINCLUDING SAFETY OF ALL PERSONS AND PROPERTY; THAT THIS REQUIREMENT SHALLFOR JOB SITE CONDITIONS DURING THE COURSE OF CONSTRUCTION OF THIS PROJECT,CONTRACTOR AGREES THAT HE SHALL ASSUME SOLE AND COMPLETE RESPONSIBILITYNOT SHOWN ON THESE DRAWINGS.RESPONSIBILITY FOR THE UTILITY PIPES, CONDUITS OR STRUCTURES SHOWN ORTAKE ALL DUE PRECAUTIONARY MEASURES TO PROTECT THE UTILITY LINES SHOWNUTILITIES EXCEPT AS SHOWN ON THESE PLANS. THE CONTRACTOR IS REQUIRED TOAVAILABLE RECORDS. TO THE BEST OF OUR KNOWLEDGE, THERE ARE NO EXISTINGOR STRUCTURES SHOWN ON THESE PLANS WERE OBTAINED BY A SEARCH OF THETHE EXISTENCE AND LOCATION OF ANY UNDERGROUND UTILITY PIPES, CONDUITS

CONNECTION WITH THE PERFORMANCE OF WORK ON THIS PROJECT EXCEPTING FOR ON THESE DRAWINGS. THE CONTRACTOR FURTHER ASSUMES ALL LIABILITY AND ENGINEER (AUTHORIZED TO PRACTICE LAND SURVEYING), AND CORNER RECORDS SHALLIS COMPLETED, MONUMENTS SHALL BE SET AND CORNER RECORDS SHALL BE FILED WITHTHE COUNTY SURVEYOR SHOWING THE NEW MONUMENTS.REFERENCE POINTS FOR RESETTING OF THE SURVEY MONUMENT. WHEN CONSTRUCTIONCORNER RECORDS SHALL DESCRIBE THE MONUMENTS FOUND WITH TIE DISTANCES TOBE FILED WITH THE COUNTY SURVEYOR PRIOR TO THE START OF CONSTRUCTION. THESELOCATED AND REFERENCED OUT BY A LICENSED LAND SURVEYOR OR REGISTERED CIVILPOINTS THAT PROVIDE SURVEY CONTROL WITHIN THE CONSTRUCTION AREA, SHALL BESURVEY MONUMENTS THAT EXIST AS SHOWN ON RECORD MAPS, HIGHWAY MAPS, OR MONUMENT PRESERVATION NOTE SHEET INDEX TO SHEETS SHEET1 . . . . . . TITLE SHEET . . . . . . FORCE MAIN SEWER PLAN23SHEETWATERSEWER &(909) 875-1804RIALTO, CALIFORNIA 92377855 W. BASELINEWEST VALLEY WATER DISTRICTCITY OF RIALTO335 W. RIALTO AVENUERIALTO, CALIFORNIA 92376(909) 421-7229(909) 820-5617RIALTO, CALIFORNIA 92376300 N. PEPPER AVENUESOUTHERN CALIFORNIA EDISONELECTRIC (909) 845-0709BEAUMONT, CALIFORNIA 92223251 EAST FIRST STREET, SC8080THE GAS COMPANYGAS (714) 284-3498ANAHEIM, CALIFORNIA 92805100 S. ANAHEIM BOULEVARD, SUITE 320AT&TTELEPHONE(888) 683-1000REDLANDS, CALIFORNIA 923731971 W. REDLANDS BOULEVARD, "B"ADELPHIA CABLECABLE TV UTILITY PURVEYORS . . . . . . DETAILS
40880-M COUNTY CENTER DRIVETEMECULA, CALIFORNIA 92591CONTACT:SOILS ENGINEER (951) 600-9271MR. JIM LARWOOD, CEG
ALL WORK SHALL BE DONE IN ACCORDANCE WITH CITY OF RIALTO STANDARD DRAWINGS, STANDARD SPECIAL PROVISIONS, AND THE LATEST EDITION OF STANDARD SPECIFICATIONS FOR PUBLIC WORKS CONSTRUCTION, WITH SUPPLEMENTS, ANY VARIATION FROM OR EXCEPTION TO THE STANDARDS OR FOLLOWING GENERAL NOTES MUST BE APPROVED BY THE CITY.ALL MAINLINE SEWERS SHALL BE VCP BELL AND SPIGOT. RESIDENTIAL LATERALS SHALL BE 4" VCP BELL AND SPIGOT. COMMERCIAL LATERALS SHALL BE 6" MINIMUM VCP BELL AND SPIGOT. NO SUBSTITUTIONS ALLOWED.THE CONTRACTOR SHALL NOTIFY THE CITY OF RIALTO DEVELOPMENT SERVICES DEPARTMENT AT LEAST 48 HOURS PRIOR TO THE START OF ANY PHASE OF CONSTRUCTION AND 24 HOURS PRIOR TO THE NEED OF INSPECTION.EXCAVATION AND TRENCH WORK SHALL BE PERFORMED IN ACCORDANCE WITH APPLICABLE STATE CONSTRUCTION SAFETY ORDERS. THE CONTRACTOR SHALL BE REQUIRED TO SHOW THAT A PERMIT FROM THE DIVISION OF INDUSTRIAL SAFETY HAS BEEN OBTAINED BEFORE SEWER CONSTRUCTION PERMIT CAN BE ISSUED.MANHOLE COVERS SHALL BE LEFT AT LEAST 6" BELOW SUB GRADE AND BROUGHT TO FINAL GRADE UPON COMPLETION OF PAVING.FOUR-INCH (4") V.C.P. SEWER LATERAL CONNECTIONS SHALL BE LAID TO GRADE AS ESTABLISHED BY THE ENGINEER SO THAT THE 4" V.C.P. WILL HAVE A MINIMUM COVER OF FOUR (4') TO THE TOP OF PIPE AT PROPERTY LINE AND SHALL HAVE A MINIMUM GRADE OF 2%. ALL SEWER LATERALS SHALL BE LAID 90 DEGREES TO THE MAIN LINE. CONSTRUCTION SHALL BE PER CITY STANDARD DRAWING No. SS-209. NO LATERAL SHALL BE PLACED UNDER ANY DRIVEWAY APPROACH OR DRIVEWAY.ALL COMPACTION SHALL BE PERFORMED AS SHOWN ON CITY OF RIALTO STANDARD No. S-110 AND THE STANDARD SPECIFICATIONS FOR PUBLIC WORKS CONSTRUCTION, CURRENT EDITION AND ADDENDUMS.ALL VITRIFIED CLAY PIPE JOINTS TO BE TYPE D OR TYPE G AS SPECIFIED IN THE STANDARD SPECIFICATIONS FOR PUBLIC WORKS CONSTRUCTION, CURRENT EDITION.FINAL AIR TESTING FOR PIPELINE LEAKAGE SHALL BE MADE IN THE PRESENCE OF THE CITY INSPECTOR AFTER BACKFILL AND COMPACTION HAVE BEEN COMPLETED BY THE CONTRACTOR AND INSPECTED, APPROVED AND ACCEPTED BY THE CITY.ALL SEWER LINES TO BE BALLED IN THE PRESENCE OF THE CITY INSPECTOR AFTER FINAL TESTING AND MANHOLE COVERS HAVE BEEN BROUGHT TO GRADE UPON COMPLETION OF PAVING. BALLING MUST BE COMPLETED TO THE SATISFACTION OF THE CITY ENGINEER PRIOR TO OCCUPANCY RELEASES BEING ISSUED.DEVELOPER'S ENGINEER SHALL FURNISH A COMPLETE SET OF "AS-BUILT" PLANS ON ORIGINAL MYLARS TO THE CITY AT THE COMPLETION OF THE SEWER WORK AND PRIOR TO PAVING OF STREETS, SHOWING LOCATION OF WYES AND END OF HOUSE LATERALS AT THE PROPERTY LINE.SAND BEDDING SHALL BE S.E. MIN. 30, 4" UNDER THE PIPE, AND 12" OF COLORED SAND OVER THE TOP OF PIPE UNLESS OTHERWISE NOTED ON PLANS. COLOR TO BE APPROVED BY FIELD INSPECTOR PRIOR TO LAYING.THE CURB AND GUTTER SHALL BE "ETCHED" SHOWING LATERAL LOCATIONS: "S" FOR SEWER, "G" FOR GAS, "E" FOR ELECTRICAL; AND "W" FOR WATER.STATE LAW (SB3019) REQUIRES THE CONTRACTOR TO CONTACT UNDERGROUND SERVICE ALERT (USA) AND OBTAIN AN IDENTIFICATION NUMBER PRIOR TO THE ISSUANCE OF THE CITY'S ENCROACHMENT PERMIT. THE CONTRACTOR SHALL NOTIFY USA TWO FULL WORKING DAYS (48 HOURS MINIMUM) IN ADVANCE OF ANY CONSTRUCTION ACTIVITIES.PRIOR TO CONSTRUCTION, THE CONTRACTOR SHALL OBTAIN A PERMIT TO WORK WITHIN THE PUBLIC RIGHT OF WAY FROM THE CITY OF RIALTO DEVELOPMENT SERVICES DEPARTMENT.DRIVE APPROACH CENTERLINES SHALL BE STAKED WHEN SEWER LINES ARE STAKED.NO TRENCH BACKFILL SHALL TAKE PLACE WITHOUT PRIOR APPROVAL OF THE CITY'S INSPECTOR.STREET TRENCHING, BACKFILLING AND PAVEMENT REPAIRS SHALL BE IN ACCORDANCE WITH CITY OF RIALTO STANDARD DRAWING No. SC-231APPROVAL OF THESE PLANS BY THE CITY OR ITS AGENTS DOES NOT RELIEVE THE ENGINEER AND THE APPLICANT FROM THE RESPONSIBILITY FOR THE CORRECTION OF ERRORS OR OMISSIONS DISCOVERED DURING CONSTRUCTION. UPON REQUEST, THE APPROPRIATE PLAN REVISIONS SHALL BE PROMPTLY SUBMITTED TO THE CITY ENGINEER FOR REVIEW AND APPROVAL.ALL NEW SANITARY SEWERS SHALL BE VIDEOTAPED, WITH TAPE SUPPLIED TO CITY ENGINEER, PRIOR TO CITY'S ACCEPTANCE OF ANY NEW SEWER.ALL SANITARY SEWER APPURTENANCES SHALL BE ABANDONED, RELOCATED AND/OR UPGRADED PER THE DIRECTION OF THE CITY INSPECTOR, PER CITY OF RIALTO STANDARDS, REGARDLESS IF SHOWN ON PLANS OR NOT.CITY OF RIALTO CONSTRUCTION INSPECTION HOURS7:00A.M. TO 5:00P.M. - MONDAY THROUGH THURSDAY

1.2.3.4.5.6. 7.8.9.10.11.12.13.14.15.16.17.18.19.20.21.22.

SEWER GENERAL NOTES
LENNAR CORPORATIONBLAINE HUMBLES4140 TEMESCAL CANYON RD., SUITE 410CORONA, CA 92883DEVELOPER/OWNER

CLUB DRCOUNTRY

FOOTHILL FWYAVENUEOAKDALEEHIGHLAND

E EASTONW EASTON STREET

E BASELINE ROAD
AVENUE

N RIVERSIDE AVENUE

VICINITY MAPNOT TO SCALE

W BASE LINE ROAD

N RIVERSIDE AVENUE
CACTUS

PROJECT LOCATION
WATER
IN THE CITY OF RIALTO~ TRACT MAP No. 20092 ~SEWER IMPROVEMENT PLANSRIVER RANCH by LENNAR HOMES PETRA GEOSCIENCES, INC.(951) 339-0470

CENTER LINEPROPERTY LINE /RIGHT OF WAYEASEMENT LINE / SETBACK LINEAPPROXIMATE LIMIT OF WORK LINEEXISTING WATER LINEEXISTING SANITARY SEWER LINEEXISTING GAS LINEEXISTING ELECTRICAL LINEEXISTING TELECOMMUNICATIONS LINEPROPOSED WATER LINEPROPOSED FIRE WATER LINEPROPOSED SANITARY SEWER LINEPROPOSED SEWER FORCEMAIN LEGEND

SNOT TO SCALETYPICAL STREET SECTION
LCR/W R/W DECLARATION OF RESPONSIBLE CHARGE I, THE UNDERSIGNED ENGINEER, HEREBY DECLARE THAT I AM THE ENGINEER OFWORK FOR THIS PROJECT, THAT I HAVE EXERCISED RESPONSIBLE CHARGE OVERTHE DESIGN OF THE PROJECT AS DEFINED IN SECTION 6703 OF THE BUSINESS ANDPROFESSIONAL CODE, AND THAT THE DESIGN IS CONSISTENT WITH CURRENTSTANDARDS. I UNDERSTAND THAT THE CHECK OF PLANS AND SPECIFICATION BYTHE CITY OF RIALTO IS CONFINED TO REVIEW ONLY, AND DOES NOT RELIEVE ME ASENGINEER OF WORK OF MY RESPONSIBILITIES FOR THE PROJECT.01/08/26ROBERT OTTE, RCE 44120 DATE WORK TO BE DONE STATEMENTTRENCHING AND BACKFILL FOR INSTALLATION OF NEW SEWER FORCE MAIN,INCLUDING MANHOLES AND AIR VAC.

STATION 10+06 TO 13+00
7 . . . . . . . . . . . . . . . . . . . .1EA
1/29/26
2/3/26
S-TR-20092
1 81
Underground Service AlertCall: TOLL FREE1-800227-2600TWO WORKING DAYS BEFORE YOU DIGREVISIONS SHEET
FOR:

CITY OF RIALTOPREPARED UNDER THE SUPERVISION OF:DATESEAL-DESIGN ENGINEER DRAWN BY: L.C.DESIGN BY: S.U.CHECKED BY: R.R. OTTEMARK
DATE
PROFILE SCALEVERT.:1" =4'HORIZ.:1" =40'
ROBERT OTTE, RCE No. 44120 (Exp. 06/30/27)RECOMMENDED FOR APPROVAL BY ENGINEERING RESOURCES OF CALIFORNIA:DATEJOHN M. BRUDIN, RCE No. 41836APPROVED BY:DATE PLAN No.MATTHEW SCOTT BENNETT, CITY ENGINEER, RCE 65100OF 3 SHEETSBENCHMARK: CITY OF RIALTO No. 036-88DESCRIPTION: CITY OF RIALTO BRASS DISC SET IN PCC BASEElev: 1490.698FOR STREET LIGHT No. 2162617E 17' SOUTH OF CENTERLINEOF RIVERSIDE OUTER HIGHWAY 68' WEST OF CENTERLINE OFCACTUS AVENUE.04/01/1989 INIT.DEPT.

LENNARTRACT 20092
TRACT MAP No. 20092SEWER IMPROVEMENT PLAN© 2024 KIMLEY-HORN AND ASSOCIATES, INC.3801 UNIVERSITY AVENUE, SUITE 300, RIVERSIDE, CA 92501 WWW.KIMLEY-HORN.COMPHONE: (951) 543-9868 1/08/26 2FORCE MAIN SEWER 15 1613 1411 12
1390
1380
10 1400
1390
1380
1400 EXISTING UTILITY NOTEEXISTING UTILITY INFORMATION SHOWN BASED ONRECORD INFORMATION AND FIELD OBSERVATIONS.CONTRACTOR IS RESPONSIBLE FOR REPORTING ONDISCREPANCIES TO THE ENGINEER SEWER CONSTRUCTION ITEMS1
65INSTALL 6" C-900 PVC SEWER FORCE FITTING, ANGLE AS NOTED3 INSTALL 2" AIRVAC, APCO MODEL 400 OR APPROVED EQUALAND MANHOLE PER DETAIL 5 ON SHEET 3TRENCH PATCH AND PAVEMENT REPAIR PER CITY OF RIALTOSTANDARD NO. SC-231, SEE SHEET 3, & REPLACE DAMAGED CURBTO THE SATISFACTION OF THE CITY ENGINEER.CONSTRUCT STANDARD PRECAST IN-PLACE MANHOLE FORSEWER PER CITY OF RIALTO STANDARD NO. SS-202-0 INSTALL 6" C-900 PVC SEWER FORCE MAIN (RESTRAINALL JOINTS)INSTALL 6" CLASS 150, 10 GAUGE, STEEL FORCE MAIN(FULLY WELD ALL JOINTS)INSTALL OF FABRICATE 6" CLASS 150, 10 GAUGE, STEEL FORCEMAIN BEND, ANGLE AS NOTED24 1 1
1 1

LINE TABLE
7 1/29/26
2/3/26
S-TR-20092
1 82
Underground Service AlertCall: TOLL FREE1-800227-2600TWO WORKING DAYS BEFORE YOU DIGREVISIONS SHEET
FOR:

CITY OF RIALTOPREPARED UNDER THE SUPERVISION OF:DATESEAL-DESIGN ENGINEER DRAWN BY: L.C.DESIGN BY: S.U.CHECKED BY: R.R. OTTEMARK
DATEROBERT OTTE, RCE No. 44120 (Exp. 06/30/25)RECOMMENDED FOR APPROVAL BY ENGINEERING RESOURCES OF CALIFORNIA:DATEJOHN M. BRUDIN, RCE No. 41836APPROVED BY:DATE PLAN No.MATTHEW SCOTT BENNETT, CITY ENGINEER, RCE 65100OF 3 SHEETSBENCHMARK: CITY OF RIALTO No. 036-88DESCRIPTION: CITY OF RIALTO BRASS DISC SET IN PCC BASEElev: 1490.698FOR STREET LIGHT No. 2162617E 17' SOUTH OF CENTERLINEOF RIVERSIDE OUTER HIGHWAY 68' WEST OF CENTERLINE OFCACTUS AVENUE.04/01/1989 INIT.DEPT.

LENNARTRACT 20092
TRACT MAP No. 20092SEWER IMPROVEMENT PLAN© 2024 KIMLEY-HORN AND ASSOCIATES, INC.3801 UNIVERSITY AVENUE, SUITE 300, RIVERSIDE, CA 92501 WWW.KIMLEY-HORN.COMPHONE: (951) 543-986801/08/26 3DETAILS
SEWER FORCEMAIN AIRVAC AND MANHOLE DETAILNOT TO SCALE5
1/29/26
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S-TR-20092
1 83
City of Rialto
Legislation Text
File #: WS-26-0186, Version: 1, Agenda #:

For Water Subcommittee Meeting, March 26, 2026
TO: Water Subcommittee Members
APPROVAL: Sachin Chawla, Director of Utilities
FROM: Toyasha Sebbag, Assistant to the City Manager
Staff Request Water Subcommittee Provide Feedback on Closed-Circuit Television Inspection Findings for the Wastewater Collection System. (ACTION)

RECOMMENDATION
Staff recommends that the Water Subcommittee provide feedback on Closed-Circuit Television (CCTV) inspection findings for the wastewater collection system.

BACKGROUND
On March 27, 2012, the City Council and the Rialto Utility Authority (RUA) approved a Concession Agreement (CA) with Rialto Water Services, LP (RWS), operated by Veolia North America. Under the terms of the CA, the wastewater collection system is subject to ongoing inspection and condition assessment activities to ensure the reliable conveyance of wastewater and compliance with regulatory requirements.

One of the primary tools used to assess the structural and operational condition of the sewer system is CCTV inspection. CCTV inspections allow operators to visually evaluate underground sewer pipelines and identify structural defects, infiltration issues, blockages, and other conditions that may affect system performance.

RWS/Veolia performs CCTV monitoring on an ongoing basis to assess the condition of sewer pipelines and identify potential maintenance or capital improvement needs. These inspections help identify deficiencies that may require Routine Repair and Replacement (RRR), Operational Repair and Replacement (ORR), or Capital Improvement Program (CIP) activities.

In September 2025, RWS compiled a summary of CCTV inspection findings identifying locations within the wastewater collection system requiring repair or corrective action. The results of this assessment were transmitted to the City in a memorandum summarizing the findings and recommended corrective actions (Attachment 1).

ANALYSIS/DISCUSSION
RWS conducts ongoing CCTV inspections of the wastewater collection system to evaluate pipeline condition and identify potential repair needs. Recent inspections identified 29 locations requiring corrective action, including broken pipes, structural defects, and lateral intrusions that could potentially lead to blockages or sanitary sewer overflows if not addressed.

City of Rialto Printed on 3/20/2026Page 1 of 2
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84 File #: WS-26-0186, Version: 1, Agenda #:

The identified deficiencies were prioritized based on risk to system reliability and environmental impacts. The estimated cost to address 29 locations ranges from approximately $625,000 to $1,470,000 depending on site conditions.

Proactively addressing these issues will help maintain the reliability of the wastewater collection system, reduce the risk of sanitary sewer overflows, and support ongoing asset management of the City’s wastewater infrastructure.

Staff is requesting feedback from the Water Subcommittee on proceeding with a phased approach to address sewer defects identified through the CCTV inspection program, to be funded through the RRR and ORR budgets in the next fiscal year, and coordinated, where feasible, with planned wastewater CIP projects.

LEGAL REVIEW
The City Attorney's Office has reviewed the staff report.

FINANCIAL IMPACTS
Operating Budget Impact
There is no impact on the Operating Budget.

Capital Improvement Budget Impact
The estimated cost to complete the recommended repairs ranges from approximately $625,000 to $1,470,000, depending on field conditions and construction requirements. At this time, a specific funding source has not yet been determined. Staff will evaluate potential funding options within the Wastewater Enterprise Fund, including opportunities to incorporate repairs into Wastewater CIP where appropriate.

ATTACHMENTS
Memo Dated September 13, 2025: Resolution of CCTV Findings - Wastewater Collection System City of Rialto Printed on 3/20/2026Page 2 of 2
powered by Legistar™
85 Rialto Water Services, LLC
P.O. Box 920
Bolinas, CA 94924
415 710-0906
1 | P a g e

VIA EMAIL
September 13, 2025

Tanya Williams
City Manager
City of Rialto
150 S. Palm Avenue
Rialto, CA 92376

cc: John Rossi
Stephen Dopudja
Megan Matson
Soheil Sadighi
Marlon Brosco

Subject: Resolution of CCTV Findings – Wastewater Collection System

Dear Tanya,

As required by the Concession Agreement, RWS/Veolia continuously perform CCTV video monitoring of the wastewater collection system to assess its condition. This monitoring process identifies flaws, damage, and potential issues that may require RRR, ORR, or CIP activity.

Recently, RWS requested that Veolia compile a comprehensive summary of its CCTV findings. The attached log details 29 areas of concern within the wastewater collection system (see attached summary table and individual one-page summaries of the identified issues).

The estimated cost to address these issues ranges from $625,000 to $1,500,000.

Given the relatively modest cost compared to the significant risk of a larger SSO event—and the resulting potential liability to the City/RUA—RWS strongly recommends that the City/RUA authorize immediate repair of all 29 identified areas of concern.

In addition, many of these issues appear to stem from private construction or anomalies related to sewer system repairs (e.g., lateral replacements protruding into main lines or damage caused during construction). RWS therefore recommends that the City/RUA update its inspection protocols within the Building 86 Department; for example potentially utilizing the encroachment permit processes to make this identification. The goal would be to identify and address such issues at the time of construction, ensuring that responsibility and costs are properly assigned to the developers and contractors (i.e. plumbers) responsible for creating them. The CCTV pictures included in the 1-page summaries help explain this suggestion.

Sincerely,

Peter Luchetti, President
Rialto Water Services LLC

Attachment:

87 SUMMA R Y T A B L E R IA L T O WA ST E WA T E R SYST E M CCT V IDE NT IFIE D A R E A S OF CONCE R N 9-11-1025
Pag e Status T itle Number Description
Condition
Score
Crticality
Score Solution Cost E stimate
L ow Hig h
1 R E D S ycamore S t 267-1, 267-2 V oid in sewer Line 5 5 R eplace damaged section of sewer line
$25,000 $60,000
4 R E D R iverside A ve 234-45, 234-46 Broken S ection of pipe 5 5 R eplace damaged section of sewer line
$25,000 $60,000
5 R E D Lilac 233-29, 233-45 Broken S ection of pipe 5 5 R eplace damaged section of sewer line
$25,000 $60,000
7 R E D R andall A ve 314-65, 314-66 Broken S ection of pipe 5 5 R eplace damaged section of sewer line
$25,000 $60,000
8 R E D Cascade Dr. 202-43, 202-44 Broken S ection of pipe 5 5 R eplace damaged section of sewer line
$25,000 $60,000
10 R E D Holly S t #q 1730892967 Broken S ection of pipe 5 5 R eplace damaged section of sewer line
$25,000 $60,000
12 R E D 834 N. Orange S t. 173150022 Broken S ection of pipe 5 5 R eplace damaged section of sewer line
$25,000 $60,000
16 R E D Y ucca A ve 249-13, 249-14 01E 4CA section of sewer line is missing 7ft into the
sewer line
5 5 R eplace dmaged section of sewer
line
$25,000 $60,000
17 R E D A cacia A ve 251-47, 251-48 FB376Communicaiton line ran into the sewer line
214 feet downt he line
5 5 R eplace dmaged section of sewer
line
$25,000 $60,000
18 R E D E asement 345-20, 345-24 1E 173A section of sewer line is missing 250 feet
down the sewer line
5 5 R eplace dmaged section of sewer
line
$25,000 $60,000
19 R E D Walnut 186-29, 186-30 88356V idable break in sewer line between
manholes 186-29 and
186-30
5 5 R eplace dmaged section of sewer
line
$25,000 $60,000
23 R E D Lancewood A ve 311-8, 311-9 3DC1AV isable break in sewer line between
manholes 311-8 and
311-9 at 94.9 ft.
5 5 R eplace dmaged section of sewer
line
$25,000 $60,000
25 R E D S pruce A ve. 328-56, 328-58 FF705V isable hole in sewer line between
manholes 328-56 and
328-58 at 108.8 ft.
5 5 R eplace dmaged section of sewer
line
$25,000 $60,000
2 Y E LLOWLamcewood A ve 251-47, 251-48 Broken section of pipe 5 5 R eplace damaged section of sewer line
$25,000 $60,000
3 Y E LLOWV ista A ve 185-50, 201-8 Broken S ection of pipe 5 5 R eplace damaged section of sewer line
$25,000 $60,000
6 Y E LLOWLilac A ve #2 345-27, 345-28 Broken S ection of pipe 5 5 R eplace damaged section of sewer line
$25,000 $60,000
9 Y E LLOWHeather S t. 186-22, 186-23 Broken S ection of pipe 5 5 R eplace damaged section of sewer line
$25,000 $60,000
14 Y E LLOWK ing S t (4Ft from MH)267-27, 267-28 1260ELateral protruding into the sewer line
5 5 Use circualr cutter to trim excess
lateral
$10,000 $10,000
15 Y E LLOWMiallard A ve (375 ft)233-38, 233-48 938A 1Lateral protruding into the sewer line
5 5 Use circualr cutter to trim excess
lateral
$25,000 $60,000
20 Y E LLOWChestnut A ve. 188-5, 204-13 D V isable break in sewer line between
manholes 188-5 and
204-13 at 100.6 ft.
5 5 R eplace dmaged section of sewer
line
$25,000 $60,000
21 Y E LLOWV an K oevering S t. 234-33, 233-34 DA C32V isable break in sewer line between
manholes 234-33 and
234-34 at 150 ft
5 5 R eplace dmaged section of sewer
line
$25,000 $60,000
26 Y E LLOWR iverside A ve 250-63, 250-69 62534P rotruding lateral in the sewer line
between manholes 25-
-63 and 250-69 at 283
ft.
5 5 R eplace dmaged section of sewer
line
$5,000 $15,000
29 Y E LLOW236 e. HOME 1741912270 P rotruding lateral liner 5 5 Cut protruding liner $5,000 $15,000 Lateral protruding into
the sewer line
5 5 Use circualr cutter to trim excess
lateral
$10,000 $10,000
11 OR A NGEHolly S t. #2 (234 Ft.) 1730893256 Broken S ection of pipe 5 5 R eplace damaged section of sewer line
$25,000 $60,000
13 OR A NGES hamrock S t. 218-53, 219-6 0548FBroken S ection of pipe 5 5 Use circualr cutter to trim excess lateral
$10,000 $10,000
22 OR A NGEFillmore A ve 264-60, 264-61 DF087V isable break in sewer liine between
manholes 264-60,
264-61 at 32.1 ft.
5 5 R eplace dmaged section of sewer
line
$25,000 $60,000
24 OR A NGEBloomington A ve 328-77, 344-18 336E 7V isable hole in sewer line between
manholes 328-77 and
344-18 at 117.7 ft.
5 5 R eplace dmaged section of sewer
line
$25,000 $60,000
27 OR A NGE383 Mariposa 1755075880 P rotruding lateral liner 5 5 Cut protruding liner $5,000 $15,000 28 OR A NGE1356 N. Olive 1747913009 P rotruding lateral liner 5 5 Cut protruding liner $5,000 $15,000 $625,000 $1,470,000

88 Rialto, CA
Sewer Line Repair List

Priority Indicator
● Red= First to be addressed (pgs 2.5.6,8,9,11,13,17,18,19,20,24,26) ● Orange= Second to be addressed (pgs 12,14,23,25,28,29) ● Yellow= Third to be addressed (pgs 3,4,7,10,15,16,21,22,27)

● Priority has been determined using several factors; Impact on structure, environmental (soil), sso potential

89 Sycamore St

Project Number: 267-1_267-2
Problem or Opportunity: Void in the sewer line 55’ downstream Condition Score: 5
Criticality Score: 5
Recommended Solution: Replace the damaged section of the sewer line Measurable Benefits: Avoid potential SSO, prevent further line damage, prevent soil erosion and contamination, and eliminate
inflow & infiltration to the WWTP
Basis of Recommendation: Degradation of the sewer line and the surrounding soil Assumptions/Risks: Soil erosion and sinkhole possibility Primary Driver: Environmental and financial impacts (i.e., property), compliance, and proper conveyance of sewage
Cost Estimate: $25k - $60k depending on flow volume, depth, size, and placement of pipe
Method of Delivery: Subcontractor
90 Lancewood Ave

Project Number: 251-47_251-48
Problem or Opportunity: Broken section of pipe
Condition Score: 5
Criticality Score: 5
Recommended Solution: Replace the damaged section of the sewer line Measurable Benefits: Avoid potential SSO, prevent further line damage, prevent soil erosion and contamination, and eliminate
inflow & infiltration to the WWTP
Basis of Recommendation: Degradation of the sewer line and the surrounding soil Assumptions/Risks: Soil erosion and sinkhole possibility Primary Driver: Environmental and financial impacts (i.e., property), compliance, and proper conveyance of sewage
Cost Estimate: $25k - $60k depending on flow volume, depth, size, and placement of pipe
Method of Delivery: Subcontractor
91 Vista Ave

Project Number: 185-50_201-8
Problem or Opportunity: Broken section of pipe
Condition Score: 5
Criticality Score: 5
Recommended Solution: Replace the damaged section of the sewer line Measurable Benefits: Avoid potential SSO, prevent further line damage, prevent soil erosion and contamination, and eliminate
inflow & infiltration to the WWTP
Basis of Recommendation: Degradation of the sewer line and the surrounding soil Assumptions/Risks: Soil erosion and sinkhole possibility Primary Driver: Environmental and financial impacts (i.e., property), compliance, and proper conveyance of sewage
Cost Estimate: $25k - $60k depending on flow volume, depth, size, and placement of pipe
Method of Delivery: Subcontractor
92 Riverside Ave

Project Number: 234-45_234-46
Problem or Opportunity: Broken section of pipe
Condition Score: 5
Criticality Score: 5
Recommended Solution: Replace the damaged section of the sewer line Measurable Benefits: Avoid potential SSO, prevent further line damage, prevent soil erosion and contamination, and eliminate
inflow & infiltration to the WWTP
Basis of Recommendation: Degradation of the sewer line and the surrounding soil Assumptions/Risks: Soil erosion and sinkhole possibility Primary Driver: Environmental and financial impacts (i.e., property), compliance, and proper conveyance of sewage
Cost Estimate: $25k - $60k depending on flow volume, depth, size, and placement of pipe
Method of Delivery: Subcontractor
93 Lilac Ave

Project Number: 233-29_233-45
Problem or Opportunity: Broken section of pipe
Condition Score: 5
Criticality Score: 5
Recommended Solution: Replace the damaged section of the sewer line Measurable Benefits: Avoid potential SSO, prevent further line damage, prevent soil erosion and contamination, and eliminate
inflow & infiltration to the WWTP
Basis of Recommendation: Degradation of the sewer line and the surrounding soil Assumptions/Risks: Soil erosion and sinkhole possibility Primary Driver: Environmental and financial impacts (i.e., property), compliance, and proper conveyance of sewage
Cost Estimate: $25k - $60k depending on flow volume, depth, size, and placement of pipe
Method of Delivery: Subcontractor
94 Lilac Ave #2

Project Number: 345-27_345-28
Problem or Opportunity: Broken section of pipe
Condition Score: 5
Criticality Score: 5
Recommended Solution: Replace the damaged section of the sewer line Measurable Benefits: Avoid potential SSO, prevent further line damage, prevent soil erosion and contamination, and eliminate
inflow & infiltration to the WWTP
Basis of Recommendation: Degradation of the sewer line and the surrounding soil Assumptions/Risks: Soil erosion and sinkhole possibility Primary Driver: Environmental and financial impacts (i.e., property), compliance, and proper conveyance of sewage
Cost Estimate: $25k - $60k depending on flow volume, depth, size, and placement of pipe
Method of Delivery: Subcontractor
95 Randall Ave

Project Number: 314-65_314-66
Problem or Opportunity: Broken section of pipe
Condition Score: 5
Criticality Score: 5
Recommended Solution: Replace the damaged section of the sewer line Measurable Benefits: Avoid potential SSO, prevent further line damage, prevent soil erosion and contamination, and eliminate
inflow & infiltration to the WWTP
Basis of Recommendation: Degradation of the sewer line and the surrounding soil Assumptions/Risks: Soil erosion and sinkhole possibility Primary Driver: Environmental and financial impacts (i.e., property), compliance, and proper conveyance of sewage
Cost Estimate: $25k - $60k depending on flow volume, depth, size, and placement of pipe
Method of Delivery: Subcontractor
96 Cascade Dr

Project Number: 202-43_202-44
Problem or Opportunity: Broken section of pipe
Condition Score: 5
Criticality Score: 5
Recommended Solution: Replace the damaged section of the sewer line Measurable Benefits: Avoid potential SSO, prevent further line damage, prevent soil erosion and contamination, and eliminate
inflow & infiltration to the WWTP
Basis of Recommendation: Degradation of the sewer line and the surrounding soil Assumptions/Risks: Soil erosion and sinkhole possibility Primary Driver: Environmental and financial impacts (i.e., property), compliance, and proper conveyance of sewage
Cost Estimate: $25k - $60k depending on flow volume, depth, size, and placement of pipe
Method of Delivery: Subcontractor
97 Heather St

Project Number: 186-22_186-23
Problem or Opportunity: Broken section of pipe
Condition Score: 5
Criticality Score: 5
Recommended Solution: Replace the damaged section of the sewer line Measurable Benefits: Avoid potential SSO, prevent further line damage, prevent soil erosion and contamination, and eliminate
inflow & infiltration to the WWTP
Basis of Recommendation: Degradation of the sewer line and the surrounding soil Assumptions/Risks: Soil erosion and sinkhole possibility Primary Driver: Environmental and financial impacts (i.e., property), compliance, and proper conveyance of sewage
Cost Estimate: $25k - $60k depending on flow volume, depth, size, and placement of pipe
Method of Delivery: Subcontractor
98 Holly St #1

Project Number: 1730892967
Problem or Opportunity: A section of the sewer line is missing Condition Score: 5
Criticality Score: 5
Recommended Solution: Replace the damaged section of the sewer line Measurable Benefits: Avoid potential SSO, prevent further line damage, prevent soil erosion and contamination, and eliminate
inflow & infiltration to the WWTP
Basis of Recommendation: Degradation of the sewer line and the surrounding soil Assumptions/Risks: Soil corrosion and sinkhole possibility Primary Driver: Environmental and financial impacts (i.e., property), compliance, and proper conveyance of sewage
Cost Estimate: $25k - $60k depending on flow volume, depth, size, and placement of pipe
99 Method of Delivery: Subcontractor

Holly St #2 (234ft)

Project Number: 1730893256
Problem or Opportunity: Visible cracks and holes in the sewer line Condition Score: 5
Criticality Score: 5
Recommended Solution: Replace a section of the sewer line Measurable Benefits: Avoid potential SSO, prevent further line damage, prevent soil erosion and contamination, and eliminate
inflow & infiltration to the WWTP
Basis of Recommendation: Degradation of the sewer line and the surrounding soil Assumptions/Risks: Soil erosion and sinkhole possibility Primary Driver: Environmental and financial impacts (i.e., property), compliance, and proper conveyance of sewage
Cost Estimate: $25k - $60k depending on flow volume, depth, size, 100

and placement of pipe
Method of Delivery: Subcontractor

843 N Orange St

Project Number: 1731500522
Problem or Opportunity: Broken section of the sewer line Condition Score: 5
Criticality Score: 5
Recommended Solution: Replace a section of the sewer line Measurable Benefits: Avoid potential SSO, prevent further line damage, prevent soil erosion and contamination, and eliminate
inflow & infiltration to the WWTP
Basis of Recommendation: Degradation of the sewer line and the surrounding soil Assumptions/Risks: Soil erosion and sinkhole possibility Primary Driver: Environmental and financial impacts (i.e., property), compliance,and proper conveyance of sewage
Cost Estimate: $25k - $60k depending on flow volume, depth, size, 101

and placement of pipe
Method of Delivery: Subcontrator

Shamrock St

Project Number: 218-53_219-6_0548F
Problem or Opportunity: Lateral protruding into the sewer line Condition Score: 5
Criticality Score: 5
Recommended Solution: Use a circular cutter to trim the excessive lateral Measurable Benefits: Avoid potential SSO, prevent further line damage, prevent soil erosion and contamination, and eliminate
inflow & infiltration to the WWTP
Basis of Recommendation: Protruding laterals could collect rags and cause an SSO Assumptions/Risks: Soil erosion and sinkhole possibility Primary Driver: Environmental and financial impacts (i.e., property), compliance, and proper conveyance of sewage
Cost Estimate: $10k depending on flow volume, depth, size, and 102

placement of pipe
Method of Delivery: Subcontractor

King St (4ft from MH)

Project Number: 267-27_267-28_1260E
Problem or Opportunity: Lateral protruding into the sewer line Condition Score: 5
Criticality Score: 5
Recommended Solution: Use a circular cutter to trim the excessive lateral Measurable Benefits: Avoid potential SSO, prevent further line damage, prevent soil erosion and contamination, and eliminate
inflow & infiltration to the WWTP
Basis of Recommendation: Protruding laterals could collect rags and cause an SSO Assumptions/Risks: Soil erosion and sinkhole possibility Primary Driver: Environmental and financial impacts (i.e., property), compliance, and proper conveyance of sewage
Cost Estimate: $10k depending on flow volume, depth, size, and 103

placement of pipe
Method of Delivery: Subcontractor

Millard Ave (375ft)

Project Number: 233-38_233-48_938A1
Problem or Opportunity: Multiple fractures in the sewer line Condition Score: 5
Criticality Score: 5
Recommended Solution: Use a circular cutter to trim the excessive lateral Measurable Benefits: Avoid potential SSO, prevent further line damage, prevent soil erosion and contamination, and eliminate
inflow & infiltration to the WWTP
Basis of Recommendation: Multiple fractures can cause an SSO Assumptions/Risks: Soil erosion and sinkhole possibility Primary Driver: Environmental and financial impacts (i.e., property), compliance, and proper conveyance of sewage
Cost Estimate: $25k - $60k depending on flow volume, depth, size, 104

and placement of pipe
Method of Delivery: Subcontractor

Yucca Ave

Project Number: 249-13_249-14_01E4C
Problem or Opportunity: A section of the sewer line is missing at 7ft into the sewer line
Condition Score: 5
Criticality Score: 5
Recommended Solution: Replace the damaged section of the sewer line Measurable Benefits: Avoid potential SSO, prevent further line damage, prevent soil erosion and contamination, and eliminate
inflow & infiltration to the WWTP
Basis of Recommendation: Degradation of the sewer line and the surrounding soil Assumptions/Risks: Soil erosion and sinkhole possibility 105

Primary Driver: Environmental and financial impacts (i.e., property), compliance, and proper conveyance of sewage
Cost Estimate: $25k - $60k depending on flow volume, depth, size, and placement of pipe
Method of Delivery: Subcontractor

Acacia Ave

Project Number: 251-47_251-48_FB376
Problem or Opportunity: Communication lines ran through the sewer line at 214 feet into the sewer line
Condition Score: 5
Criticality Score: 5
Recommended Solution: Replace the damaged section of the sewer line Measurable Benefits: Avoid potential SSO, prevent further line damage, prevent soil erosion and contamination, and eliminate
inflow & infiltration to the WWTP
Basis of Recommendation: The conduit line broke the main and degraded the line Assumptions/Risks: Soil erosion and sinkhole possibility 106

Easement

Project Number: 345-20_345-24_1E173
Problem or Opportunity: A section of the sewer line is missing at 250 feet into the sewer line
Condition Score: 5
Criticality Score: 5
Recommended Solution: Replace the damaged section of the sewer line Measurable Benefits: Avoid potential SSO, prevent further line damage, prevent soil erosion and contamination, and eliminate
inflow & infiltration to the WWTP
Basis of Recommendation: Degradation of the sewer line and the surrounding soil Assumptions/Risks: Soil erosion and sinkhole possibility 107

Walnut

Project Number: 186-29_186-30_86356
Problem or Opportunity: Visible break in the sewer line between manholes 186- 29 and 186-30
Condition Score: 5
Criticality Score: 5
Recommended Solution: Replace a section of the sewer line Measurable Benefits: Avoid potential SSO, prevent further line damage, prevent soil erosion and contamination, and eliminate
inflow & infiltration to the WWTP
Basis of Recommendation: Degradation of the sewer line and the surrounding soil Assumptions/Risks: Soil erosion and sinkhole possibility 108

Chestnut Ave

Project Number: 188-5_204-13_D
Problem or Opportunity: Visible break in the sewer line between manholes 188-5 and 204-13 at 100.6 ft.

Condition Score: 5
Criticality Score: 5
Recommended Solution: Replace a section of the sewer line Measurable Benefits: Avoid potential SSO, prevent further line damage, prevent soil erosion and contamination, and eliminate
inflow & infiltration to the WWTP
Basis of Recommendation: Degradation of the sewer line and the surrounding soil Assumptions/Risks: Soil erosion and sinkhole possibility 109

Van Koevering St

Project Number: 234-33_234-34_DAC32
Problem or Opportunity: Visible break in the sewer line between manholes 234- 33 and 234-34 at 150 ft.

Fillmore Ave

Project Number: 264-60_264-61_DFO87
Problem or Opportunity: Visible break in the sewer line between manholes 264- 60 and 264-61 at 32.1 ft.

Assumptions/Risks: Soil erosion and sinkhole possibility Primary Driver: Environmental and financial impacts (i.e., property), compliance, and proper conveyance of sewage
Cost Estimate: $25k - $60k depending on flow volume, depth, size, and placement of pipe
Method of Delivery: Subcontractor

Lancewood Ave

Project Number: 311-8_311-9_3DC1A
Problem or Opportunity: Visible break in the sewer line between manholes 311-8 and 311-9 at 94.9 ft.

Bloomington Ave

Project Number: 328-77_344-18_336E7
Problem or Opportunity: Visible hole in the sewer line between manholes 328-77 and 344-18 at 117.7 ft.

Basis of Recommendation: Degradation of the sewer line and the surrounding soil Assumptions/Risks: Soil erosion and sinkhole possibility Primary Driver: Environmental and financial impacts (i.e., property), compliance, and proper conveyance of sewage
Cost Estimate: $25k - $60k depending on flow volume, depth, size, and placement of pipe
Method of Delivery: Subcontractor

Spruce Ave

Project Number: 328-56_328-58_FF705
Problem or Opportunity: Visible hole in the sewer line between manholes 328-56 and 328-58 at 108.8 ft.

Assumptions/Risks: Spruce Soil erosion and sinkhole possibility Primary Driver: Environmental and financial impacts (i.e., property), compliance, and proper conveyance of sewage
Cost Estimate: $25k - $60k depending on flow volume, depth, size, and placement of pipe
Method of Delivery: Subcontractor

Riverside Ave

Project Number: 250-63_250-69_62534
Problem or Opportunity: Protruding lateral in the sewer line between manholes 250-63 and 250-69 at 283 ft.

Basis of Recommendation: Degradation of the sewer line and the surrounding soil Assumptions/Risks: Soil erosion and sinkhole possibility Primary Driver: Environmental and financial impacts (i.e., property), compliance, and proper conveyance of sewage
Cost Estimate: $5k - $15k depending on flow volume, depth, size, and placement of pipe
Method of Delivery: Subcontractor

383 Mariposa

Project Number: 1755075880
Problem or Opportunity: Protruding Lateral liner
Condition Score: 5
Criticality Score: 5
Recommended Solution: Cut protruding liner.

Measurable Benefits: Avoid potential SSO, prevent further line damage, prevent soil erosion and contamination, and eliminate
inflow & infiltration to the WWTP
Basis of Recommendation: Degradation of the sewer line and the surrounding soil 116

Assumptions/Risks: Soil erosion and sinkhole possibility Primary Driver: Environmental and financial impacts (i.e., property), compliance, and proper conveyance of sewage
Cost Estimate: $5k - $15k depending on flow volume, depth, size, and placement of pipe
Method of Delivery: Subcontractor

1356 N. Olive

Project Number: 1747913009
Problem or Opportunity: Protruding Lateral liner
Condition Score: 5
Criticality Score: 5
Recommended Solution: Cut protruding liner.

Measurable Benefits: Avoid potential SSO, prevent further line damage, prevent soil erosion and contamination, and eliminate
inflow & infiltration to the WWTP
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Basis of Recommendation: Degradation of the sewer line and the surrounding soil Assumptions/Risks: Soil erosion and sinkhole possibility Primary Driver: Environmental and financial impacts (i.e., property), compliance, and proper conveyance of sewage
Cost Estimate: $5k - $15k depending on flow volume, depth, size, and placement of pipe
Method of Delivery: Subcontractor

236 E Home

Project Number: 1747912270
Problem or Opportunity: Protruding Lateral liner
Condition Score: 5
Criticality Score: 5
Recommended Solution: Cut protruding liner.

Assumptions/Risks: Soil erosion and sinkhole possibility Primary Driver: Environmental and financial impacts (i.e., property), compliance, and proper conveyance of sewage
Cost Estimate: $5k - $15k depending on flow volume, depth, size, and placement of pipe
Method of Delivery: Subcontractor

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City of Rialto
Legislation Text
File #: WS-26-0188, Version: 1, Agenda #:

RECOMMENDATION
Staff recommends that the Water Subcommittee provide feedback on Fontana Union Water Company Shares.

BACKGROUND
Fontana Union Water Company (FUWC) is a mutual water company located in Fontana, California, whose shareholders hold proportional ownership interests in the company and its associated water rights and infrastructure.

Unlike traditional corporate stock, shares in a mutual water company represent both voting rights and access to water supplies derived from the company’s groundwater and surface water sources.

Historical records show that the City of Rialto (City) acquired multiple FUWC share certificates between the late 1950s and mid-1960s, through purchases and transfers from private shareholders and corporate entities.

Examples documented in the share certificates include transfers from:
· Kaiser Land Company
· E.R. Sedlack Company
· private shareholders
Based on the compiled shareholder documentation, the City currently holds approximately 170.25 shares of FUWC stock (Attachment 1).

As a shareholder, the City is responsible for paying periodic assessments levied by FUWC to support the operation and maintenance of the water company’s facilities.

Assessment records indicate that the City has paid shareholder assessments from 1959 through 2026, totaling approximately $565,314.

ANALYSIS/DISCUSSION
The City/Rialto Utility Authority (RUA) periodically evaluates its water supply portfolio to ensure that City of Rialto Printed on 3/20/2026Page 1 of 5
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The City/Rialto Utility Authority (RUA) periodically evaluates its water supply portfolio to ensure that resources are aligned with current and future municipal water supply needs.

Historical records indicate that the City acquired shares in the Fontana Union Water Company (FUWC) during the 1950s and 1960s, when shares were periodically available for purchase or auction. The City currently holds 170.25 FUWC shares.

While prior summaries suggested that the City had not taken wet water deliveries, available system information confirms that the City does have an existing physical intertie connection with Fontana at the Linden Avenue and Baseline Road location. This intertie, constructed in the late 1970s to early 1980s, remains in place and is operational, although it is typically kept closed (valves off) and used for emergency or supplemental supply purposes.

State water system records also identify an active emergency intertie connection between Rialto and Fontana-area systems, supporting the existence of this infrastructure.

The existence and use of this interconnection is independent of the City’s ownership of FUWC shares. The intertie is maintained under mutual aid and emergency supply agreements and would remain available to the City regardless of whether the City retains or sells its FUWC shares.

Accordingly, the sale of FUWC shares would not impact the City’sability to obtain supplemental or emergency water through this connection, nor is staff proposing to abandon or modify the existing intertie infrastructure.

Figure 1: Location Map
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File #: WS-26-0188, Version: 1, Agenda #:

The City’srights to surface water originating from Lytle Creek are governed by the 1897 McKinley Decree and preserved under the 1924 Lytle Creek Basin Judgment, which established priorities for surface flow and pumping rights within the basin. The 1924 Judgment specifically provides that existing water rights established by prior court decrees remain protected and are not impaired by subsequent agreements or arrangements.

When the City acquired FUWC shares in the 1950s and 1960s, Inland Empire communities relied primarily on local groundwater and surface water sources to meet water demand. Mutual water companies such as FUWC were commonly used by cities and landowners to secure access to local water supplies and participate in regional water operations.

Regional water supply conditions changed significantly when the San Bernardino Valley Municipal Water District began delivering imported water from the State Water Project (SWP) to the Inland Empire in 1972. The availability of imported water, combined with the development of municipal groundwater infrastructure, reduced the need for Rialto to rely on mutual water company shares for operational water deliveries.

As a result, while the City has continued to hold FUWC shares acquired during that earlier period, the shares have functioned as a legacy asset from a time when local agencies were securing water rights prior to the availability of imported SWP supplies.

Based on information provided by Fontana Water Company, another FUWC shareholder reportedly sold shares at approximately $2,500 per share. Applying this transaction indicator to the City’s City of Rialto Printed on 3/20/2026Page 3 of 5
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sold shares at approximately $2,500 per share. Applying this transaction indicator to the City’s holdings of 170.25 shares, the estimated value of the City’sFUWC shares would be approximately $425,625.

Fontana Water Company also noted that there may be future financial considerations associated with FUWC share ownership, including potential demobilization and legal costs related to legacy power facilities. These costs could result in increased ongoing obligations, potentially raising annual operating costs by two to three times current levels.

Staff evaluated the City’scurrent water supply portfolio and determined that selling the City’sFUWC shares would not adversely impact the City’sability to meet current or projected water demands, as the City’swater supply reliability is supported by other groundwater, imported water, and adjudicated surface water rights.

Given that the City has not historically relied on FUWC for operational water deliveries and maintains sufficient groundwater, imported water, and adjudicated surface water rights to meet current and projected demands, the shares may represent an opportunity to monetize a legacy asset while maintaining the City’s overall water supply reliability.

Staff is requesting feedback from the Water Subcommittee regarding whether to proceed with advertising the sale of the City’s FUWC shares.

LEGAL REVIEW
The City Attorney's Office has reviewed the staff report.

FINANCIAL IMPACTS
Operating Budget Impact
There is no impact on the Operating Budget.

Capital Improvement Budget Impact
There is no impact on the Capital Improvement Budget associated with the Water Subcommittee providing feedback on the potential advertisement and sale of the City’s FUWC shares.

If the City Council ultimately authorizes the sale of the shares, the transaction would generate one- time revenue to the Water Enterprise Fund. Based on information provided by Fontana Water City of Rialto Printed on 3/20/2026Page 4 of 5
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time revenue to the Water Enterprise Fund. Based on information provided by Fontana Water Company indicating that another FUWC shareholder reportedly sold shares at approximately $2,500 per share, the City’s holdings of approximately 170.25 shares could have an estimated value of approximately $425,625, subject to market conditions and negotiation of the final sale price.

Any revenue generated from the sale would be deposited into the Water Enterprise Fund and could be used to support water system operations, capital improvements, or other water supply reliability initiatives, as determined by the City Council.

ATTACHMENTS
City of Rialto FUWC Share Data
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City of Rialto
Legislation Text
File #: WS-26-0189, Version: 1, Agenda #:

For Water Subcommittee Meeting March 26, 2026
TO: Water Subcommittee Members
APPROVAL: Sachin Chawla, Director of Utilities
Director of Utilities Updates:

1. Veolia’s Monthly Operations Reports (MOR):
a. February 2026 (reporting period December 2025)
b. March 2026 (reporting period January 2026)

2. RUA Funding Awarded as of March 2026 and Project Funding List

3. RUA Federal & State Funding Priorities Flyer

4. Senior & Low-Income Utility Discount programs
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RWS/Veolia
Monthly Operations Report
February 2026
Reporting period December 2025
138

RIALTO

CUSTOMER SERVICE & REVENUE

MONTHLY OPERATIONS REPORT

Reporting Period:

December 2025

Prepared for: Rialto Water Services
Prepared by: Veolia Water West Operating Services
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Table of Contents
I. CUSTOMER SERVICE SUMMARY............................................................................................. 3 II. CALL CENTER PERFORMANCE ................................................................................................. 3 III. AUTOMATED SERVICES ........................................................................................................... 3 IV. CONSUMPTION & BILLING ...................................................................................................... 4 A. Consumption .................................................................................................................... 4 B. Billing ................................................................................................................................ 4 V. REVENUE & AGING .................................................................................................................. 5 A. Revenue ........................................................................................................................... 5 B. Aging ................................................................................................................................ 6 C. Bad Debt........................................................................................................................... 6 VI. SERVICE ORDERS ..................................................................................................................... 7 VII. OTHER ACTIVITIES ................................................................................................................... 7 VIII. REVENUE REPORT ................................................................................................................... 7 A. Revenue Summary ........................................................................................................... 7 B. Non Rate Revenue - Extraterritorial Customers ............................................................. 7 C. Non-Rate Revenue – Other ............................................................................................. 8 D. Development Impact Fees ............................................................................................... 8 E. Rialto Basin Water Rights and Leasing ........................................................................... 8 F. Payment Collection Method – Fiscal Year to Date ....................................................... 10 G. Cash Collections on Behalf of the City of Rialto-Prior Year Comparison ..................... 10 H. Non-Rate Revenue + Utility Revenue Collections Prior Year Comparison .................. 10 I. Non-Rate Revenue + Utility Revenue Collected Fiscal Year-to-Date ........................... 11 J. Increase in Cash Collections and Fund Distribution—Prior Year Comparison ............ 11 K. Non-Rate and Extraterritorial Customer Accounts Receivable Aging ......................... 12

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3 I. CUSTOMER SERVICE SUMMARY
During this reporting month, the Customer Service team provided call service level of

88.7%. Out of 1,417 inbound calls answered 1,257 answered within the first 30 seconds.

Water consumption has decreased by 34.3% when compared against previous month.

When compared against last year, consumption has decreased by 14.3%.

Sewer revenue has decreased by 2.2% compared to the prior month and increased by 6.2% from last year.

II. CALL CENTER PERFORMANCE
During this reporting month, service level was 88.7% with 1,257 out of 1,417 being answered within the first 30 seconds. Overall average wait time was forty-seven (47) seconds.

III. AUTOMATED SERVICES
About 13,145 or 57.3 % of the rate payers have created log-ins to access their accounts online. Of these customers, with online access, 48.1% have chosen the e-bill option. This e-bill participation is 13.3% increase from December of the prior year.

86.8% 89.6% 88.8% 91.8% 89.1% 88.0% 85.0% 86.7%

80.1%

90.5% 87.8% 86.6% 88.7%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%
100.0%
0 200
400
600
800
1,000
1,200
1,400
1,600
Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Answer in 30 Sec 1,100 1,091 1,153 1,183 1,148 1,120 1,256 1,263 1,043 1,277 1,212 1,090 1,257 Calls Answered 1,267 1,218 1,308 1,288 1,287 1,272 1,479 1,456 1,294 1,411 1,379 1,258 1,417 Service Level 86.8% 89.6% 88.8% 91.8% 89.1% 88.0% 85.0% 86.7% 80.1% 90.5% 87.8% 86.6% 88.7% Call Center Performance
Answer in 30 Sec Calls Answered Service Level
Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-26 Number of Bills 22,575 22,587 22,604 22,657 22,694 22,705 22,770 22,792 22,838 22,864 22,875 22,927 22,913 Number of Bill Adjustments (during billing) 29 17 10 29 25 15 18 29 10 7 8 11 27 Automated Over the Phone Payments 2,436 2,509 2,040 2,509 2,454 2,276 2,578 2,596 2,344 2,531 2,560 2,089 2,404 Online Payment 10,320 9,747 7,676 9,912 9,798 8,434 9,800 10,260 8,691 11,224 10,369 7,614 10,432 E-bill Participants 5,959 5,997 6,031 6,069 5,969 6,000 6,074 6,134 6,185 6,233 6,290 6,332 6,372 Auto Pay Participants (New Portal) 4,367 4,420 4,467 4,536 4,554 4,630 4,696 4,728 4,776 4,834 4,881 4,923 4,978 PayNearMe 95 108 73 99 97 88 88 88 88 103 85 80 80
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4 IV. CONSUMPTION & BILLING
A. Consumption
Water consumption has decreased by 34.3% when compared against previous month.

When compared against last year, consumption has decreased 14.3%.

B. Billing
A total of 22,913 bills were mailed or sent out electronically in December. Billing accuracy was 99.9% with twenty-seven (27) requiring adjustments after bill generation.

January Feburary March April May June July August September October November December 2023 Water 228,173 155,716 166,787 182,460 204,254 261,868 356,836 339,778 378,728 282,726 276,127 306,012 2024 Water 206,431 180,655 200,494 182,612 212,666 337,500 324,399 361,294 446,508 312,312 360,721 253,250 2025 Water 259,394 284,167 203,166 212,580 316,422 285,524 323,411 430,678 345,305 310,177 330,460 217,069 0 50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
HCF
Billed Consumption Yearly Comparison Water
January February March April May June July August September October November December 2023 Sewer 58,591 49,302 49,159 63,252 52,718 57,019 65,743 60,617 68,539 65,798 63,762 66,131 2024 Sewer 55,865 50,136 60,877 55,837 54,976 64,339 64,897 68,143 79,931 67,254 73,871 63,136 2025 Sewer 58,347 65,403 51,489 50,598 58,461 59,483 56,496 69,265 66,908 62,147 69,061 61,468 0 10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
HCF (hundred cubic feet)
Billed Consumption Yearly Comparison Sewer
(Commercial Only)
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5 V. REVENUE & AGING
A. Revenue
Water revenue has decreased 21.9% when compared against the prior month and increased 4.3% when compared against previous year. Sewer revenue has decreased 2.2% compared to the prior month and increased by 6.2% from last year.

(Please consider the scale of the graph as doubled height does not mean double the amount)

January Feburary March April May June July August September October November December 2023 Water Sales $962,367.0 $787,207.0 $813,577.0 $841,086.0 $901,604.0 $1,044,220 $1,266,316 $1,227,744 $1,331,376 $1,098,822 $1,081,741 $1,155,329 2024 Water Sales $912,498.0 $852,016.0 $881,079.0 $864,955.0 $930,910.0 $1,229,951 $1,194,468 $1,291,723 $1,510,717 $1,170,740 $1,297,360 $1,038,617 2025 Water Sales $1,059,329. $1,249,252. $1,039,421. $1,064,341. $1,341,734. $1,257,370. $1,358,417. $1,622,939. $1,420,962. $1,330,008. $1,387,141. $1,083,202. $-
$200,000.00
$400,000.00
$600,000.00
$800,000.00
$1,000,000.00
$1,200,000.00
$1,400,000.00
$1,600,000.00
$1,800,000.00
Dollars ($)
Annual Water Sales Comparison
January Feburary March April May June July August September October November December 2023 Sewer Sales $2,184,085. $2,111,381. $2,110,125. $2,219,973. $2,142,863. $2,172,890. $2,243,741. $2,202,859. $2,264,521. $2,243,821. $2,233,990. $2,260,801. 2024 Sewer Sales $2,158,668. $2,147,783. $2,229,038. $2,190,195. $2,186,025. $2,260,077. $2,264,418. $2,288,863. $2,385,936. $2,295,859. $2,344,329. $2,264,375. 2025 Sewer Sales $2,227,202. $2,415,779. $2,331,147. $2,322,513. $2,384,586. $2,384,448. $2,367,499. $2,463,167. $2,440,356. $2,408,576. $2,460,034. $2,404,771. $1,900,000.00
$2,000,000.00
$2,100,000.00
$2,200,000.00
$2,300,000.00
$2,400,000.00
$2,500,000.00
Dollars ($)
Annual Sewer Sales
143

6 B. Aging
The total aging balance has decreased by 4.3%, see first table below. For balances >30-days only, water has increased 10.4% and wastewater has increased by 19.7%. Sewer balances are expected to continue rising until tax roll in year 2026.

C. Bad Debt
Fourteen (14) accounts were sent to collections for a total amount of $3,341.05. These bad debts arise from customers moving out or selling the property and not closing the account with final payments.
$0.00
$500,000.00
$1,000,000.00
$1,500,000.00
$2,000,000.00
$2,500,000.00
$3,000,000.00
$3,500,000.00
$4,000,000.00
Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Aging Balances in Dollars ($)
Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Water $1,354,212 $1,332,847 $1,419,698 $1,292,967 $1,111,102 $1,487,957 $1,432,711 $1,518,645 $2,039,090 $1,720,916 $1,542,853 $1,648,072 $1,430,158 Sewer $2,776,221 $2,648,132 $3,315,495 $3,196,836 $3,180,111 $3,719,707 $3,484,523 $2,007,183 $2,577,088 $2,513,640 $2,396,727 $2,706,744 $2,735,737 Historical Aging Totals
Water and Sewer
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Thousands
Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Water $570,310 $601,520 $396,891 $478,675 $359,409 $396,223 $485,523 $578,110 $683,117 $661,838 $642,879 $607,605 $670,880 Sewer $1,096,563 $1,180,220 $1,365,283 $1,421,880 $1,580,609 $1,793,227 $1,813,326 $538,015 $676,294 $793,637 $876,236 $943,678 $1,129,440 Aging Balances Over 30 Days Water and Sewer
(April 2021 forward contains both consumption and meter charges) 144

7 VI. SERVICE ORDERS
349 service orders were initiated by the customer service team during the reporting month. Of this total, 73 service orders or 21% were due to occupant changes. 214 service orders were initiated to accommodate water disconnection for non-payment and reconnection of water services when customer set up (or reinstate) a payment arrangement with down payment.

VII. OTHER ACTIVITIES
CS department is operating with full staff with no injuries reported.

Total numbers of 1,104 disconnections were performed during the year 2025. This number is posted on rialtowater.com to comply with the SB998 requirements.

VIII. REVENUE REPORT
A. Revenue Summary
Cash Revenue is compiled and reconciled to the merchant account on a daily basis. Cash receipts and deposits are made daily and internal controls are reviewed regularly to ensure safeguarding of assets and proper recording of all transactions. Total reve nue collected in December 2025 is $4,289,000 whereas Non-Rate Revenue is $ 547,000; Utility Revenue is $3,673,000 and Tax / Ambulance Revenue at $69,000.

RWS collects Utility User Taxes and Ambulance Fees on behalf of the City of Rialto. The Utility User Tax (UUT) rates are based on the total billed amount, therefore the collection fluctuates as billed amounts change. The total UUT charges collected in December 2025 and December 2024 are $64,000 and $269,000 respectively. The large variance in collection of UUT charges is due to the City exempting UUT charges to the Residential customers beginning January 2025 through December 2025. Ambulance Revenue is also collected on behalf of the City of Rialto totaling $5,000 in December 2025 and $5,000 in December 2024.

B. Non Rate Revenue - Extraterritorial Customers
RWS bills the City of Fontana $133,000 each month for extraterritorial sewer usage.

Colton Unified School District is in agreement with RWS to pay $5 ,000 monthly for sewage connections based on enrollment rates provided each school year.

An extraterritorial agreement to provide sewer service was executed between the City of Rialto and the County of San Bernardino —County Service Area 70, Zone BL (Bloo mington). 145

8 This housing development project generates extraterritorial sewer service revenue of $20,000 per month.

The City has an agreement with Social Science Services dba Cedar House Life Change Center to provide extraterritorial sewer service providing sewer revenue of about $5,000 each month.

C. Non-Rate Revenue – Other
Other revenue is generated by leasing space for cell towers to AT&T, which has two leases at $2,073 and $1,500. Sprint lease is at a currently contracted rate of $2,000 each month.

Vertical Bridge also provides $2,400 a month of cell tower generated Revenue.

Rialto Bioenergy Solutions subleased a City property for $10,750 a month.

The City and San Bernardino Valley Municipal Water District have entered into a Brine Line Capacity Agreem ent on December 23, 2021. This agreement pertains to the use of its interest in the SARI Line and discharge of certain brine waste to the SARI Line exclusively from the operation of Rialto Bioenergy Facilities within the City’s boundaries. The revenue generated in this agreement consists of quarterly rent of $37,500 along with the Fixed Pipeline Capacity Fee of $3,300 per month and Fixed Treatment Plant Capacity Fee of $3,300 per month. In addition, a variable fee of any discharge costs are also billed.

The San Bernardino Valley Water District (SBVWD) reimburses RWS for water conservation programs provided to customers. A quarterly bill is delivered directly by the City.

D. Development Impact Fees
Development Impact Fees (“DIF”) are paid to the City of Rialto as various developments are completed in the City. As such, the City of Rialto receives monies from the various developments, which is then distributed to RWS. There was no DIF payment received in December of 2025.

E. Rialto Basin Water Rights and Leasing
A Standby Water Lease Agreement between Fontana Union Water Company and City of Rialto is in effect. For the 202 4-2025 Water Year, RWS billed San Bernardino County the amount of $349,264 for the Standby Charges and Production Charge. The County paid and has no further Water Lease obligations in the current year.

In addition, the County is also billed annually for Rialto Well #3’s summertime electricity costs based on peak usage.
146

9 Cash Collections by Payment Method – Rialto Water Services

Transaction Counts for Carrier Deposits, Remote Deposits, UB Bill Conc Service (EBOX), and Lockbox Deposits reflect number of batches deposited to the bank. Transaction counts for credit card POS, IVR, and Pay-Near-Me transactions are per number of customer payments. IVR payments are received and process by Paymentus on the day the transactions are made.

General ledger are posted and accounted for the following day the payments are processed.

Payment Method Description
Transaction
Count DECEMBER 2025 %
Carrier Deposits Cash deposits prepared per day for transport to US Bank. 22 $ 142,623 0.03407052 Remote Deposits Scanned batches of checks payments made at the customer service counter 22 762,404 18.21% EBOX Batches of electronic customer payments posted
to customer accounts at US Bank. 22 341,059 8.15%

PAYMENTUS - IVR /
Paymentus / Walk-in
Credit Card payment
Customer payments by credit cards and ACH /
eCheck payments through an Interactive Voice
Response system using a touchtone
phone.Payments originated from Merchant online
service
13,881 2,080,662 49.70%
Lockbox Deposits Batches of customer payments mailed in to US Bank's lockbox 22 848,106 20.26% Pay Near Me
Cash payment service that allows customers to pay
at a local 7-Eleven, CVS, Walmart or Family Dollar
stores. 86 11,254 0.27% Total Revenue per Bank $ 4,186,107 100.00% Recon to RUA Recap:

Adj detailed in RUA 103,158
Prior mo. Correction
RUA increase in Cash $ 4,289,265
147
10 F. Payment Collection Method – Fiscal Year to Date

G. Cash Collections on Behalf of the City of Rialto-Prior Year Comparison

H. Non-Rate Revenue + Utility Revenue Collections Prior Year Comparison

Jul 2025 Aug 2025 SEPT 2025 OCT 2025 NOV 2025 DEC 2025 Total % Carrier Deposits 144,793$ 140,286$ 155,654$ 147,234$ 103,022$ 142,623$ 833,611$ 3.40% Remote Deposits 499,489 241,420 686,008 995,009 311,584 762,404 3,495,913$ 14.27% EBOX 407,888 286,741 367,169 378,253 237,351 341,059 2,018,462$ 8.24% Paymentus, IVR, Credit Cards 2,118,383 1,853,657 2,370,061 2,278,360 1,572,041 2,080,662 12,273,164$ 50.11% Lockbox Deposits 1,176,928 904,658 1,003,875 1,162,475 707,921 848,106 5,803,963$ 23.69% Pay Near Me 11,821 11,616 14,142 11,316 9,254 11,254 69,404$ 0.28% Total Revenue to Bank 4,359,302$ 3,438,377$ 4,596,910$ 4,972,646$ 2,941,173$ 4,186,107$ 24,494,516$ 100.00% NSF (10,757) (15,745) (17,442) (15,892) (14,628) (20,682) (95,146)$ Net deposits 4,348,546$ 3,422,632$ 4,579,468$ 4,956,754$ 2,926,545$ 4,165,425$ 24,399,370$ DEC 2025 DEC 2024 Variance
UUT Water 25,719$ 86,944$ (61,225)$
UUT Sewer 38,099 182,162 (144,063)
Ambulance 5,622 5,767 (146)
Total 69,440$ 274,874$ (205,433)$
DEC 2025 DEC 2024 Variance
Non-Rate / Extra Territorial
Revenue 547,200$ 143,345$ 403,855$
Utility Revenue 3,672,625$ 3,692,515$ (19,890)
Total 4,219,825$ 3,835,861$ 383,965$
148
11 I. Non-Rate Revenue + Utility Revenue Collected Fiscal Year-to-Date

J. Increase in Cash Collections and Fund Distribution—Prior Year Comparison

Jul 2025 Aug 2025 Sept 2025 Oct 2025 Nov 2025 Dec 2025 Total Non-Rate Revenue
Cell Tower Rent,Llease 21,485 17,154 15,080 53,897 13,580 14,324 135,520 Interest Income - - - - - - -

NRR-FOG - - - - - - - Municipal Water Sales - - - - - 349,264 349,264 Extra Terr- Sewage 169,483 6,711 107,820 583,011 35,551 174,217 1,076,793 Abatement of Expenses - - - - - - - Water Meter Lost/Damaged/Repl 22,650 17,176 13,295 16,075 14,366 1,557 85,120 Misc Fees - New Occ., Same Day Svc 10,815 7,182 7,522 9,355 6,949 7,834 49,657 Miscellaneous Revenue - Sewer - - - - - 5 5

NSF - - - - - - - Total Non-Rate Revenue 224,433$ 48,223$ 143,717$ 662,339$ 70,447$ 547,200$ 1,696,359 Utility Revenue
Water Penalty 30,460 33,752 31,754 37,988 34,640 29,186 197,780 Sewer Penalty 74,191 48,802 42,100 54,993 40,418 43,022 303,527 Turf Removal, Hi-Eff Rebate (100) - - - - - (100) Water Deposits Billed 16,142 15,863 16,027 17,938 13,085 7,527 86,582 Hydrant Deposits 315 158 161 68 - 197 899 Sewer Deposits Paid - - - - - - - Sewer Deposits Billed 16,204 16,667 15,480 15,055 12,065 9,677 85,147 Water 1,329,427 1,148,584 1,723,704 1,493,556 835,225 1,291,024 7,821,520 Sewer 2,760,649 1,949,745 2,492,623 2,526,711 1,594,009 2,385,765 13,709,502 Unapplied Credits 26,588 50,012 109,984 80,529 180,113 (93,772) 353,454 Bad Debt Sewer - - - - - - - Bad Debt Water - - - - - - - Tax Roll Sewer - - - - - - - Collection Agency - Water - - - - - - - Collection Agency - Sewer - - - - - - - Collection Agency - Misc Water - - - - - - - Total Utility Revenue 4,253,876$ 3,263,582$ 4,431,832$ 4,226,839$ 2,709,556$ 3,672,625$ 22,558,310$ Total Non-Rate + Utility Rev. 4,478,309 3,311,805 4,575,549 4,889,178 2,780,002 4,219,825 24,254,669 Increase to Cash
per Incode
Adjustments
Required to GL
Cash
Fund 660-Sewer Fund 670-Water Total Cash Per
GL
Adjustments To
Match RUA to Bank
Cash/CC/Cks
Deposit To Bank
Dec 2025 4,289,265 24,159 2,478,266 1,786,840 4,289,265 (103,158) 4,186,107 Dec 2024 4,110,734 20,884 2,702,902 1,386,948 4,110,734 257,925 4,368,659 149

12 K. Non-Rate and Extraterritorial Customer Accounts Receivable Aging

AT&T makes annual payment of one cell tower rent and monthly dues on the other.

Social Science Service (Cedar House) balance reflects current service fees.

City of Fontana is current with its obligations.

Colton Unified School District has no balance due.

County of San Bernardino is current with its obligations.

Rialto Bioenergy Solutions is current with its obligations.

Vertical Bridge Holdco, LLC and Sprint: Vertical Bridge and Sprint have been contacted for open Invoices as well.

San Bernardino County Waste System Division’s has no balance due.

Name
Total as of
12/31/2025 Current 31 to 60 days 61 to 90 days >90 days AT&T - Easton -$ - - - - Cedar House 8,561 8,561 - - - CITY OF FONTANA 131,182 131,182 - - - Colton Unified School District - - - - - County of San Bernardino-CSA 70 BL - - - - - Rialto BioEnergy Facilities 124,782 124,782 - - - Sprint-Nextel 5,530 - - - 5,530 San Bernardino Co Waste System Div - - - - - SB Valley Mun Water District - - - - - Vertical Bridge Holdco, LLC (CIG) 10,374 2,830 2,830 - 4,714 Grand Total 280,429$ 267,356$ 2,830$ -$ 10,243$ 150
1 RIALTO WATER

MONTHLY OPERATIONS REPORT

Reporting Period:

December 2025

Prepared for: Rialto Water Services
Prepared by: Veolia Water West Operating Services

151
2 RIALTO WATER

OPERATIONS AND MAINTENANCE REPORT

Contents
I. EXECUTIVE SUMMARY 3
A. Water Production Totals 4
B. Static Water Levels 6
II. REGULATORY 7
A. Regulatory Submittals 7
B. Sample Site Location Results 8
C. Violations 10
D. Source Water Total Dissolved Solids (TDS) 10
III. HEALTH AND SAFETY 10
A. Monthly Safety Program Overview 10
IV. CHEMICAL USE 10
V. ELECTRICAL USE 11
VI. WATER QUALITY COMPLAINTS 11
VII. OPERATIONS UPDATE 11
A. Operational Wells 12
B. Valve Activity 12
C. Hydrant Flushing 12
D. Sanitary Survey 13
VIII. ASSET MANAGEMENT 13
A. Main Breaks, Service Leaks, Adverse Water Quality and Health/Safety Issues 13 B. Major Equipment and/or Machinery Outages 14
IX. RAINFALL TOTALS 14

152
3 RIALTO WATER

MONTHLY OPERATIONS REPORT

I. EXECUTIVE SUMMARY
Highlights of this month’s Water O&M report include the following:
• The water distribution network achieved compliance with all permit requirements.
• No sample anomalies that require secondary sampling.
• No significant issues with water availability. The purchasing of water remained consistent and daily equalization tanks levels remained at anticipated volume for customer availability.
• The Preventative Maintenance Program, as well as Valve Exercising, continues to identify areas of focus for our Routine Repair and Replacement.

153
4 A. Water Production Totals
Total water delivered into the Rialto system this month was 732.69 acre-feet. 639.96 acre-feet was delivered into the system from the groundwater wells (City 4A production is included in the well total). 39.29 acre-feet was delivered via the BLF transmis sion system (City 4A production has been deducted). 53.44 acre-feet came from the OPRTP.

154
5 DECEMBER 2025 DAILY BOOSTER TOTALS IN ACRE FEET
DATE
Booster
1 Booster 2 Booster 3 Booster 4 Booster 5 Booster 6-9 Booster 10 Booster 11 12/1/25 0.00 0.00 5.79 0.00 4.38 0.00 0.00 0.00
12/2/25 0.00 0.00 7.16 0.00 3.71 4.20 0.17 0.00
12/3/25 0.00 0.00 2.27 0.00 0.00 5.07 0.00 0.00
12/4/25 0.00 0.00 5.32 0.00 1.13 3.58 0.00 0.00
12/5/25 0.00 0.00 2.81 0.00 0.00 1.79 0.00 0.00
12/6/25 0.00 0.00 2.75 0.00 5.40 3.39 0.00 0.00
12/7/25 0.00 0.00 7.66 0.00 0.00 6.12 0.00 0.00
12/8/25 0.00 0.00 0.71 0.00 3.33 2.82 0.00 0.00
12/9/25 0.00 0.00 4.77 0.00 0.00 8.31 0.00 0.00
12/10/25 0.00 0.00 5.91 0.00 0.00 4.49 0.00 0.00
12/11/25 0.00 0.00 3.07 0.00 0.00 4.84 0.00 0.00
12/12/25 0.00 0.00 9.30 0.00 1.58 5.23 0.00 0.00
12/13/25 0.00 0.00 1.46 0.00 0.00 1.51 0.00 0.00
12/14/25 0.00 0.00 1.88 0.00 0.68 0.98 0.00 0.00
12/15/25 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
12/16/25 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
12/17/25 0.00 0.00 3.21 0.00 2.57 0.00 0.00 0.00
12/18/25 0.00 0.00 2.90 0.00 0.00 0.00 0.00 0.00
12/19/25 0.00 0.00 3.13 0.00 0.00 3.58 0.00 0.00
12/20/25 0.00 0.00 0.00 0.00 7.47 0.87 0.00 0.00
12/21/25 0.00 0.00 0.86 0.00 2.54 0.00 0.00 0.00
12/22/25 0.00 0.00 2.73 0.00 4.17 4.31 0.00 0.00
12/23/25 0.00 0.00 7.28 0.00 0.02 7.59 0.00 0.00
12/24/25 0.00 0.00 7.48 0.00 0.00 10.39 0.00 0.00
12/25/25 0.00 0.00 6.02 0.00 0.00 6.54 0.00 0.00
12/26/25 0.00 0.00 0.14 0.00 3.56 0.80 0.00 0.00
12/27/25 0.00 0.00 8.59 0.00 3.55 4.82 0.00 0.00
12/28/25 0.00 0.00 2.47 0.00 2.72 2.36 0.00 0.00
12/29/25 0.00 0.00 4.47 0.00 4.65 4.93 0.00 0.00
12/30/25 0.00 0.00 9.05 0.00 0.00 4.87 0.00 0.00
12/31/25 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
TOTAL 0.00 0.00 149.25 0.00 40.11 108.97 0.06 0.00
MIN 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
MAX 0.00 0.00 17.79 0.00 6.98 9.82 0.04 0.00
AVE 0.00 0.00 4.98 0.00 1.29 3.52 0.00 0.00

155
6 B. Static Water Levels
All City of Rialto wells are sounded each month, both active and inactive well sites.

Depth-to-water is measured from the well head to the static water surface.

Increases in depth-to-water represent a decrease in static water level.

Well levels
Wells Depth to
Pump
Historical Maximum
Depth to Water Dec Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Chino # 1 (580 ft)
In-active well 429' 410' 412' 414' 414' 413' 413' 413' 411' 410' 410' 410' 411’ 411’ Chino # 2 (550 ft) 369' 342' 341' 335' 338' 335' 337' 334' 334' 333' 331' 333' 334’ 334’ City # 1 (260 ft) 392' 121' 126' 121' 122' 119' 117' 119' 121' 120' 120' 122' 122’ 117’ City # 2 (480 ft) 402' 147' 146' 128' 130' 128' 122' 129' 131' 125' 126' 126' 126’ 128’ City # 3 (525 ft)
Out of Service 505' 414' 414' 415' 416' 416' 414' 417' 418' 418' 417' 417’' 417’ 417’ City # 4A (528 ft) 406' 381' 374' 377' 375' 373' 362' 367' 370' 366' 360' 359' 363’ 362’ City # 5 (385 ft)
In-active well 364' 318' 318' 321' 318' 318' 316' 316' 316' 316' 317' 318' 319’ 317’ Rialto # 1 (650 ft)
In-active well 588' 561' 555' 571' 569' 565' 563' 564' 565' 562' 563' 566' 566’ 565’ Rialto # 2 (550 ft)
In-active well 502' 499' 501' 496' 495' 502' 496' 498' 498' 497' 496' 494' 496’ 495’ Rialto # 3 (509 ft) 478' 472' 473' 473' 472' 472' 470' 470' 472' 471' 471' 474' 474’ 474’ Rialto # 4 (450 ft)
In-active well 418' 413' 414' 415' 416' 415' 415' 414' 413' 414' 413' 412' 412’ 412’ Rialto # 5 (560 ft) 387' 385' 385' 384' 384' 386' 386' 387' 387' 387' 386' 386' 386’ 386’ Rialto Well # 7 In-
active well 362' 362' 360' 360' 359' 353' 356' 354' 356' 357' 357' 357' 359’ 359’ Miro # 3 (563 ft) 492' 484' 484' 484' 484' 483' 483' 481' 480' 479' 480' 480' 478’ 481’ EW-1 (780 ft) 480' 475' 474' 472' 475' 475' 474' 475' 460' 471' 467' 480' 477’ 478’

156
7 II. REGULATORY
All State of California and public health agency regulatory requirements were met.

A. Regulatory Submittals
• Monthly Summary of Distribution System Coliform Monitoring • NPDES Discharge Letter
• Conservation SAFER Report
Sample Test Result Standards
Type of Sampling Units of
Measure
Detectable Limit for
Reporting
Maximum Contaminant
Level
Total Coliform A -- --
E. Coli A -- --
Nitrate as N mg/L 0.20 10
Perchlorate (CLO4) μg/L 1.0 6.0
Total Dissolved Solids mg/L -- 500
P= Present
A= Absent
mg/L = parts per million
μg/L = parts per billion

Sample Date Sample Site Location Results
12/03/2025
Type of Sampling Chino
2 City
2 City
4A
Rialto
3 Rialto
5 Miro
3 EW-1

BLF
Cactus
BLF 6-
9 OPRT
P
Total Coliform A A A A A A OUT OF

SERVICE A A OUT OF

SERVICE
E. Coli A A A A A A A A
Nitrate as N 3.1
Perchlorate (CLO4) 1.2* 5.9* <1.0 7.8*
Total Dissolved Solids 220 180 290 210 190 190 290 320 *Sample is from the well head so it is before disinfection & treatment. Treatment is performed before it goes into the distribution system. Water going into the distribution system is <1.0 (non-detect).

157
8 B. Sample Site Location Results
Rialto Distribution Sample Results
December 2025
Sample Location Free Cl Res (Field) Total Coliform E. Coli Apparent Color Odor Threshold Turbidity CYCLE 1 - 12/02/25 mg/l P/A P/A Color Units TON NTU
335 W. Rialto 1.70 A A
1228 W. Merrill 1.50 A A
256 N. Fillmore 1.10 A A
987 W. Grove 1.10 A A
978 N. Driftwood 1.10 A A
1451 N. Linden 1.20 A A
469 W. Jackson 1.50 A A
935 E. Mariposa 1.10 A A
1000 N. Joyce 1.50 A A
766 N. Chestnut 1.20 A A
149 W. Victoria 1.00 A A
313 E. McKinley 1.10 A A
609 E. South 1.10 A A
273 E. Alru 1.40 A A
1161 S. Lilac 1.30 A A
101 E. Valley 1.50 A A
CYCLE 2 - 12/09/25 mg/l P/A P/A Color Units TON NTU
210 N. Park 0.90 A A <3.0 1 <0.10
101 S. Larch 0.90 A A <3.0 1 <0.10
320 N. Wisteria 0.90 A A <3.0 1 <0.10
861 W. Grove 0.90 A A <3.0 1 <0.10
1168 N. Glenwood 0.90 A A <3.0 1 <0.10
1320 N. Fitzgerald 0.80 A A <3.0 1 <0.10
860 N. Willow 1.10 A A <3.0 1 <0.10
209 E. Cornell 1.30 A A <3.0 1 <0.10
643 E. Margarita 1.30 A A <3.0 1 <0.10
1170 N. Terrace Rd. 1.10 A A <3.0 1 <0.10
681 E. Erwin 1.00 A A <3.0 1 <0.10
402 E. Merrill 1.20 A A <3.0 1 <0.10
261 W. Wilson 1.10 A A <3.0 1 <0.10
532 S. Iris 1.20 A A <3.0 1 <0.10
281 W. Hawthorne 1.20 A A <3.0 1 <0.10
379 W. Valley 1.10 A A <3.0 1 <0.10

158
9 Rialto Distribution Sample Results
October 2025
Sample Location
Free Cl Res
(Field)
Total
Coliform
E.

Coli
Apparent
Color
Odor
Threshold Turbidity
CYCLE 3 – 12/17/25 mg/l P/A P/A Color Units TON NTU
236 N. Willow 1.20 A A
775 E. Foothill 1.10 A A
878 N. Primrose 1.30 A A
369 E. Van Koevering 1.30 A A
274 W. Valencia 1.20 A A
1566 N. Fillmore 1.60 A A
932 N. Idyllwild 1.10 A A
644 N. Smoketree 1.10 A A
605 W. Rosewood 1.30 A A
1189 W. Second 1.20 A A
775 W. Rialto 1.20 A A
211 E. Wilson 1.20 A A
595 E. Huff 1.40 A A
1005 S. Riverside 1.20 A A
794 S. Verde 1.00 A A
1055 W. Bloomington 1.20 A A
CYCLE 4 - 12/23/25 mg/l P/A P/A Color Units TON NTU
375 S. Cactus 1.10 A A
101 S. Linden 1.00 A A
234 N. Larch 1.00 A A
575 N. Driftwood 0.90 A A
1355 W. Shamrock 0.90 A A
992 N. Yucca 1.30 A A
481 W. Cornell 1.20 A A
158. E. Shamrock 1.20 A A
749 E. Holly 1.30 A A
545 E. Victoria 1.30 A A
200 N. Sycamore 1.10 A A
407 E. Allen 1.10 A A
399 E. Montrose 1.20 A A
856 S. Orange 1.10 A A
911 S. Cactus 1.20 A A
220 W. Valley 1.20 A A
P/A + Present or
Absent

159
10 C. Violations
No violations were received during this reporting period.

D. Source Water Total Dissolved Solids (TDS)
Veolia has a goal of maintaining an acceptable blended TDS level between all its sources. This goal is achieved by shifting production to or from the lowest TDS wells or purchased low TDS water while adhering to the overall water supply strategy and meeting system demands. The TDS was 242 mg/L for the month of December as compared to 254 mg/L in November. The TDS levels are below the secondary maximum contaminant level requirements.

III. HEALTH AND SAFETY
A. Monthly Safety Program Overview
Category Monthly Statistic
Safety Training Topics LSR Q3
LSR Q4
Lost Time Incidents, count* 0
Recordable Incidents, count 0
Near Miss Incidents, count 3
Vehicle Incidents, count 0
*A lost time incident has not occurred in the past 4370 days.

IV. CHEMICAL USE
Sodium hypochlorite is the only chemical added to the water system. A total of 2314 gallons of sodium hypochlorite was used in December as compared to 2491 gallons used in November.
160
11 V. ELECTRICAL USE
Southern California Edison (SCE) data for December 2025. We will provide the data as it is received, thus will include yearly usage received to date.

SCE kWh
Year Month
Billed
Usage
2024 October 529,208
2024 November 266,378
2024 December 247,546
2025 January 360,398
2025 February 294,421
2025 March 223,709
2025 April 428,976
2025 May 505,764
2024 June 575,467
2025 July 842,561
2025 August 669,021
2025 September 752,171
2025 October 654,454
2025 November 734,743
2025 December 647,384

VI. WATER QUALITY COMPLAINTS
No complaints were received during this reporting period.

VII. OPERATIONS UPDATE
The overall operational strategy is to meet the daily water demand. The City of Rialto water system has six operational wells, one of which is owned by the County of San Bernardino and operated by Veolia; Oliver P. Roemer Treatment Plant (OPRTP), which is jointly owned by the City (25%) and West Valley Water District (WVWD); purchased water through the Baseline Feeder (BLF) system from San Bernardino Valley Municipal Water District (SBVMWD); and, if required to meet demand, additional water can be supplied by the City of San Bernardino (CSB) through the BLF for emergency supply only with no guarantee of actual delivery. Water produced from City Well 4A discharges into 161
12 the BLF and its production is included in deliveries from that shared transmission line when City Well 4A is in service.

The overall pumping strategy is based on adjudicated rights, well availability, remediation requirements, and quality of source, cost to operate, and varying weather conditions. TDS effluent concentrations for the City of Ria lto WWTP are taken into consideration when operating the facilities and water sources.

A. Operational Wells
EW-1 well was out of service due to pump issues. OPRTP meter was turned off in October.

B. Valve Activity
On the basis of information collected in 2019, Veolia now has a baseline assessment of all valves and has initiated a new cycle of valve exercising . Five valves were exercised in the month of December.

Valve Turning Progress
Valves
Turned
2020 530
2021 340
2022 463
2023 750
2024 379
2025 338
C. Hydrant Flushing
There are 63 hydrant/dead ends that are flushed annually to maintain water quality. All annual flushing were completed in December.

Hydrant/Dead End Flushing
Progress
2025
January 0
February 0
March 6
April 6
May 11
June 0
162
13 July 0
August 29
September 3
October 0
November 8
December 0
Total 63
Progress % (100)
D. Sanitary Survey
DDW performed field site visit s on May 22 and August 22, 2024. The results of the sanitary survey were received on September 19, 2024. All minor deficiencies have been corrected and submitted to DDW.

VIII. ASSET MANAGEMENT
The following work orders were completed by Water production staff for the month of December:
• Preventive Maintenance –268
• Corrective Maintenance –0
• Predictive Maintenance –0
502– PMs planned for January 2026
A. Main Breaks, Service Leaks, Adverse Water Quality and Health/Safety Issues
The following work orders were completed by Water distribution staff for the month of December:
• Main line – 0
• Service line – 10
• Hydrants - 0
• Angle Meter Stop – 15
• Meter Box & Lid Replacement – 23
163
14 • Meter Leaks/ Replacements - 23
B. Major Equipment and/or Machinery Outages
EW-1 well was out of service due to pump issues.

IX. RAINFALL TOTALS

164

RIALTO WASTEWATER

MONTHLY OPERATIONS REPORT

Reporting Period:

December 2025

Prepared for: - Rialto Water Services
Prepared by: - Veolia Water West Operating Services
165

RIALTO WASTEWATER

OPERATIONS AND MAINTENANCE REPORT

Contents

EXECUTIVE SUMMARY

1. Collection System / Customer Service Log
a. Collection System Activities
b. S.S.O. dates
c. Customer Service Call Outs

2. Wastewater Treatment Plant - Monthly Overview
a. Significant events during the month

3. Treatment Facility Performance / Laboratory Activities a. See attached Monthly Performance Summary
B. Summary of Notices and Laboratory Tests / Reports filed with government agencies c. Effluent Specifications Exceedance Discussion

4. Monthly Safety Program Overview

5. Biosolids, Chemicals, and Utilities
a. Monthly Biosolids Production
b. Monthly Chemical Consumption
c. Monthly Utilities Consumption

6. Odor Complaints / Actions Taken

7. Major Equipment and/or Machinery Outages

8. Outside Agency Activities during the Month
a. Government agency or property insurance inspections
b. Government agency environmental, health, or safety tests/monitoring c. Government agency notice of violation received
d. Government agency monitoring
e. Other matters of concern

9. Complaint Logs

TABLES

● Treatment Facility – Monthly Performance Summary
● Collection System- Monthly Pipe Cleaned
166

RIALTO WASTEWATER

MONTHLY OPERATIONS REPORT

EXECUTIVE SUMMARY

Highlights of this month’s Wastewater O&M report include the following:

● The treatment plant performed well and met all compliance parameters. ● There were three residential call-outs for sewer-related issues.

1. Collection System/Customer Service Log

a. Collections group activities this month:

Category Current Month
Statistics
Prior Month Statistics 2025 Year to Date
Statistics
Sanitary sewers are cleaned using the
conventional method, including feet, which
includes “Hot spot cleaning.”
22,274 22,805 257,555
Sanitary sewers assessed using the SL-RAT
method, feet 0 0 21,112
CCTV Inspection, miles (26 is the annual goal)* 2.11 2.09 27.91 Manhole Inspections 1 0 40
USA Dig Alert Markings, count 24 23 374
Residential call-outs 3 1 25
Sanitary Sewer Overflows 0 0 2

b. S.S.O. N/A
c. Customer Service Call Outs – See Item 9 for details.

2. Wastewater Treatment Plant – Monthly Overview
● NPDES discharge compliance parameters were achieved.

a. Significant events during the month were:

None

3. Treatment Facility Performance/Laboratory Activities

a. See the attached Table 1, Monthly Performance Summary.

b. Summary of Notices and Laboratory Tests/Reports filed with government agencies.

The monthly submittal of State/Federal discharge monitoring reports was completed promptly.

c. Effluent specification exceedance discussion
See Section 2 above. N/A

167

4. Monthly Safety Program Overview

Category Monthly Statistic
Safety Training Topics 0
Lost Time Incidents count* 0
Recordable Incidents, count 0
Near Miss Incidents, count 0
Vehicle Incidents, count 0

*A lost time incident has not occurred since 9-3-2020, totaling 1,944 days.

5. Biosolids, Chemicals, and Utilities

a. Monthly Biosolids Production

Biosolids Current Month
Statistics
Prior Month Statistics 2025 Year-to-Date
Statistics
Wet Tons Produced 1,620.2 1,074.56 14,096.76
10,245.84
b. Monthly Chemical Consumption

Chemical Current Month
Gallons Used
Prior Month
Gallons Used
Sodium Hypochlorite, Tertiary Disinfection 30,904 28,886 Sodium Bisulfite, Discharge Dechlorination 11,054 10,031 Ferrous Chloride, Digester Gas Conditioning 4,070 4,180 Polymer, Gravity Belt Thickener 496 454
Polymer, Belt Filter Press 834 722
Alum, Tertiary Filters 1 1

c. Monthly Utilities Consumption

Utility Prior Month Statistics
Electricity WWTP, KWH 460,600 377,336
Electricity Lilac LS, KWH 716 895
Electricity Sycamore LS, KWH 515 539
Electricity Ayala LS, KWH 8,376 8,561
Electricity Agua Mansa LS, KWH 2,547 2,867
Electricity Cactus LS, KWH 1,636 1,593
Electricity Ramrod LS, KWH 673 680
Frisbee Park LS, KWH 780 680
El Rancho Verde LS, KWH 2,188 2,085
Natural Gas WWTP, Therms 7,243 4,569
* LS is in bypass mode, pending CIP completion
** SCE has not updated this account.

6. Odor Complaints Received/Actions Taken
None

7. Major Equipment and/or Machinery Outages
● Sludge Holding Tank
● Aeration Basin #3 is currently offline.

168

8. Outside Agency Activities during the Month
a. Government agency or property insurance inspections
None

b. Government agency environmental, health, or safety tests/monitoring Permit testing was completed for this month

c. Government agency notices of violation received
None

d. Government agency monitoring
Routine monitoring reports were submitted.

e. Other matters of concern
None

9. Customer Service Callout Details Log

Date Address Comments Personnel Manhole To
Manhole
12/11/2025 993 N Primrose Resident called to report gurgling coming from their toilet. A collections member called the resident to inform them this was from sewer line cleaning.

BVO
12/11/2025 168 E Baseline The collections team responded to reports of SSO occurring behind Stater Bros. They spoke with a manager at the store and informed them that the grease
interceptor line needed to be cleaned. This required a
plumber. Containment was set up until the line was
cleared.

ET
12/22/2025 2562 W Vine A resident called regarding a sewage backup at the property: the main sewer line was checked and was clear.

The resident was instructed to have the plumber clean
the lateral to the main line, which is longer than 75 feet.

169

Table 1 Summary

170

171

Table 2 Summary

172

173

Table 3 Summary
*(Cyanide not available at time of report)

174

175

Monthly Sewer Line Cleaned

176

177
RWS/Veolia
Monthly Operations Report
Mar
ch 2026
Reporting perio d January 2026
178

RIALTO

CUSTOMER SERVICE & REVENUE

MONTHLY OPERATIONS REPORT

Reporting Period:

January 2026

Prepared for: Rialto Water Services
Prepared by: Veolia Water West Operating Services
179

180

3 I. CUSTOMER SERVICE SUMMARY
During this reporting month, the Customer Service team provided call service level of

93.0%. Out of 1,208 inbound calls answered 1,124 answered within the first 30 seconds.

Water consumption has increased by 16.9% when compared against previous month. This increase is in line with typical fluctuation from month to month. When compared against last year, consumption has decreased by 2.1%.

Sewer revenue has increased by less than 1% compared to the prior month and increased by 8.2% from last year.

II. CALL CENTER PERFORMANCE
During this reporting month, service level was 93.0% with 1,124 out of 1,208 being answered within the first 30 seconds. Overall average wait time was thirty-two (32) seconds.

III. AUTOMATED SERVICES
About 13,204 or 57.3 % of the rate payers have created log-ins to access their accounts online. Of these customers, with online access, 48.1% have chosen the e-bill option. This e-bill participation is 13.3% increase from January of the prior year.

89.6% 88.8% 91.8% 89.1% 88.0% 85.0% 86.7% 80.1%

90.5% 87.8% 86.6% 88.7% 93.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%
100.0%
0 200
400
600
800
1,000
1,200
1,400
1,600
Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Answer in 30 Sec 1,091 1,153 1,183 1,148 1,120 1,256 1,263 1,043 1,277 1,212 1,090 1,257 1,124 Calls Answered 1,218 1,308 1,288 1,287 1,272 1,479 1,456 1,294 1,411 1,379 1,258 1,417 1,208 Service Level 89.6% 88.8% 91.8% 89.1% 88.0% 85.0% 86.7% 80.1% 90.5% 87.8% 86.6% 88.7% 93.0% Call Center Performance
Answer in 30 Sec Calls Answered Service Level
Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Number of Bills 22,587 22,604 22,657 22,694 22,705 22,770 22,792 22,838 22,864 22,875 22,927 22,913 23,045 Number of Bill Adjustments (during billing) 17 10 29 25 15 18 29 10 7 8 11 27 47 Automated Over the Phone Payments 2,509 2,040 2,509 2,454 2,276 2,578 2,596 2,344 2,531 2,560 2,089 2,404 2,326 Online Payment 9,747 7,676 9,912 9,798 8,434 9,800 10,260 8,691 11,224 10,369 7,614 10,432 8,771 E-bill Participants 5,997 6,031 6,069 5,969 6,000 6,074 6,134 6,185 6,233 6,290 6,332 6,372 6,401 Auto Pay Participants (New Portal) 4,420 4,467 4,536 4,554 4,630 4,696 4,728 4,776 4,834 4,881 4,923 4,978 5,025 PayNearMe 108 73 99 97 88 88 88 88 103 85 80 80 60
181

4 IV. CONSUMPTION & BILLING
A. Consumption
Water consumption has increased by 16.9% when compared against previous month. .

This increase is in line with typical fluctuation from month to month. When compared against last year, consumption has decreased 2.1%.

B. Billing
A total of 23,045 bills were mailed or sent out electronically in January. Billing accuracy was 99.8% with forty-seven (47) requiring adjustments after bill generation. This number was higher than usual. The root cause analysis has been completed. The findings indicate that the increase in meter reading errors was due to the use of replacement meter r eaders during the holiday. Additional training was performed.

January Feburary March April May June July August September October November December 2024 Water 206,431 180,655 200,494 182,612 212,666 337,500 324,399 361,294 446,508 312,312 360,721 253,250 2025 Water 259,394 284,167 203,166 212,580 316,422 285,524 323,411 430,678 345,305 310,177 330,460 217,069 2026 Water 253,829
0 50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
HCF
Billed Consumption Yearly Comparison Water
January February March April May June July August September October November December 2024 Sewer 55,865 50,136 60,877 55,837 54,976 64,339 64,897 68,143 79,931 67,254 73,871 63,136 2025 Sewer 58,347 65,403 51,489 50,598 58,461 59,483 56,496 69,265 66,908 62,147 69,061 61,468 2026 Sewer 60,658
0 10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
HCF (hundred cubic feet)
Billed Consumption Yearly Comparison Sewer
(Commercial Only)
182

5 V. REVENUE & AGING
A. Revenue
Water revenue has increased 9.0% when compared against the prior month and increased

11.5% when compared against previous year. Sewer revenue has increased by less than

1.0% compared to the prior month and increased by 8.2% from last year. These increases are the result of the rate adjustment implemented in January 2025, which began to be reflected in the February 2025 billing cycle.

(Please consider the scale of the graph as doubled height does not mean double the amount)

January Feburary March April May June July August September October November December 2024 Water Sales $912,498. $852,016. $881,079. $864,955. $930,910. $1,229,95 $1,194,46 $1,291,72 $1,510,71 $1,170,74 $1,297,36 $1,038,61 2025 Water Sales $1,059,329 $1,249,252 $1,039,421 $1,064,341 $1,341,734 $1,257,370 $1,358,417 $1,622,939 $1,420,962 $1,330,008 $1,387,141 $1,083,202 2026 Water Sales $1,180,870
$-
$200,000.00
$400,000.00
$600,000.00
$800,000.00
$1,000,000.00
$1,200,000.00
$1,400,000.00
$1,600,000.00
$1,800,000.00
Dollars ($)
Annual Water Sales Comparison
January Feburary March April May June July August September October November December 2024 Sewer Sales $2,158,668 $2,147,783 $2,229,038 $2,190,195 $2,186,025 $2,260,077 $2,264,418 $2,288,863 $2,385,936 $2,295,859 $2,344,329 $2,264,375 2025 Sewer Sales $2,227,202 $2,415,779 $2,331,147 $2,322,513 $2,384,586 $2,384,448 $2,367,499 $2,463,167 $2,440,356 $2,408,576 $2,460,034 $2,404,771 2026 Sewer Sales $2,408,925
$1,950,000.00
$2,000,000.00
$2,050,000.00
$2,100,000.00
$2,150,000.00
$2,200,000.00
$2,250,000.00
$2,300,000.00
$2,350,000.00
$2,400,000.00
$2,450,000.00
$2,500,000.00
Dollars ($)
Annual Sewer Sales
183

6 B. Aging
The total aging balance has increased by 15.4%, see first table below. For balances >30- days only, water has increased 1.4% and wastewater has increased by 6.0%. Sewer balances are expected to continue rising until tax roll in 2nd half of year 2026.

C. Bad Debt
Thirty-three (33) accounts were sent to collections for a total amount of $9,037.81. These bad debts arise from customers moving out or selling the property and not closing the account with final payments.
$0.00
$500,000.00
$1,000,000.00
$1,500,000.00
$2,000,000.00
$2,500,000.00
$3,000,000.00
$3,500,000.00
$4,000,000.00
Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Aging Balances in Dollars ($)
Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Water $1,332,847. $1,419,698. $1,292,967. $1,111,102. $1,487,957. $1,432,711. $1,518,645. $2,039,090. $1,720,916. $1,542,853. $1,648,072. $1,430,158. $1,656,743.

Sewer $2,648,132. $3,315,495. $3,196,836. $3,180,111. $3,719,707. $3,484,523. $2,007,183. $2,577,088. $2,513,640. $2,396,727. $2,706,744. $2,735,737. $3,152,037.

Historical Aging Totals
Water and Sewer
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Thousands
Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Water $601,520 $396,891 $478,675 $359,409 $396,223 $485,523 $578,110 $683,117 $661,838 $642,879 $607,605 $670,880 $679,989 Sewer $1,180,220 $1,365,283 $1,421,880 $1,580,609 $1,793,227 $1,813,326 $538,015 $676,294 $793,637 $876,236 $943,678 $1,129,440 $1,197,669 Aging Balances Over 30 Days Water and Sewer
(April 2021 forward contains both consumption and meter charges) 184

7 VI. SERVICE ORDERS
329 service orders were initiated by the customer service team during the reporting month. Of this total, 76 service orders or 23% were due to occupant changes. 215 service orders were initiated to accommodate water disconnection for non-payment and reconnection of water services when customer set up (or reinstate) a payment arrangement with down payment.

VII. OTHER ACTIVITIES
CS department is operating with full staff with no injuries reported.

Notices regarding the rate increase, effective March 2026, will be included with the monthly bills distributed in February 2026.

VIII. REVENUE REPORT
A. Revenue Summary
Cash Revenue is compiled and reconciled to the merchant account on a daily basis. Cash receipts and deposits are made daily and internal controls are reviewed regularly to ensure safeguarding of assets and proper recording of all transactions. Total revenue collected in January 2026 is $ 3,397,000 whereas Non-Rate Revenue is $ 194,000; Utility Revenue is $3,146,000 and Tax / Ambulance Revenue at $57,000.

RWS collects Utility User Taxes and Ambulance Fees on behalf of the City of Rialto. The Utility User Tax (UUT) rates are based on the total billed amount, therefore the collection fluctuates as billed amounts change. The total UUT charges collected in January 2026 and January 2025 are $53,000 and $ 255,000 respectively. The large variance in collection of UUT charges is due to the City exempting UUT charges to the Residential customers beginning January 2025 through December 2025. Ambulance Revenue is also collected on behalf of the City of Rialto totaling $4,000 in January 2026 and $5,000 in January 2025.

B. Non Rate Revenue - Extraterritorial Customers
RWS bills the City of Fontana $133,000 each month for extraterritorial sewer usage.

Colton Unified School District is in agreement with RWS to pay $5 ,000 monthly for sewage connections based on enrollment rates provided each school year.

An extraterritorial agreement to provide sewer service was executed between the City of Rialto and the County of San Bern ardino—County Service Area 70, Zone BL (Bloomington). 185

8 This housing development project generates extraterritorial sewer service revenue of $20,000 per month.

The City has an agreement with Social Science Services dba Cedar House Life Change Center to prov ide extraterritorial sewer service providing sewer revenue of about $5,000 each month.

C. Non-Rate Revenue – Other
Other revenue is generated by leasing space for cell towers to AT&T for $2,073. Sprint lease is at a currently contracted rate of $2,000 each month. Vertical Bridge also provides $2,400 a month of cell tower generated Revenue.

Rialto Bioenergy Solutions subleased a City property for $10,750 a month.

The City and San Bernardino Valley Municipal Water District have entered into a Brine Line Capacity Agreement on January 23, 2021. This agreement pertains to the use of its interest in the SARI Line and discharge of certain brine waste to the SARI Line exclusively from the operation of Rialto Bioenergy Facilities within the City’s boundaries. The revenue generated in this agreement consists of quarterly rent of $37,500 along with the Fixed Pipeline Capacity Fee of $3,300 per month and Fixed Treatment Plant Capacity Fee of $3,300 per month. In addition, a variable fee of any discharge costs are also billed.

The San Bernardino Valley Water District (SBVWD) reimburses RWS for water conservation programs provided to customers. A quarterly bill is delivered directly by the City.

In addition, the County is also billed annually for Rialto Well #3’s summertime electricity costs based on peak usage.
186

9 Cash Collections by Payment Method – Rialto Water Services

General ledger are posted and accounted for the following day the payments are processed.

Payment Method Description
Transaction
Count JANUARY 2026 %
Carrier Deposits Cash deposits prepared per day for transport to US Bank. 20 $ 127,207 3.68% Remote Deposits Scanned batches of checks payments made at the customer service counter 20 510,265 14.76% EBOX Batches of electronic customer payments posted
to customer accounts at US Bank. 269,016 7.78%

PAYMENTUS - IVR /
Paymentus / Walk-in
Credit Card payment
Customer payments by credit cards and ACH /
eCheck payments through an Interactive Voice
Response system using a touchtone
phone.Payments originated from Merchant online
service 12,008 1,722,987 49.83% Lockbox Deposits Batches of customer payments mailed in to US Bank's lockbox 20 822,102 23.78% Pay Near Me
Cash payment service that allows customers to pay
at a local 7-Eleven, CVS, Walmart or Family Dollar
stores. 53 5,868 0.17% Total Revenue per Bank $ 3,457,446 100.00% Recon to RUA Recap:

Adj detailed in RUA (60,693)
Prior mo. Correction
RUA increase in Cash $ 3,396,754
187
10 F. Payment Collection Method – Fiscal Year to Date

G. Cash Collections on Behalf of the City of Rialto-Prior Year Comparison

H. Non-Rate Revenue + Utility Revenue Collections Prior Year Comparison

Jul 2025 Aug 2025 SEPT 2025 OCT 2025 NOV 2025 DEC 2025 JAN 2026 Total % Carrier Deposits 144,793$ 140,286$ 155,654$ 147,234$ 103,022$ 142,623$ 127,207$ 960,818$ 3.44% Remote Deposits 499,489 241,420 686,008 995,009 311,584 762,404 510,265 4,006,178$ 14.33% EBOX 407,888 286,741 367,169 378,253 237,351 341,059 269,016 2,287,478$ 8.18% Paymentus, IVR, Credit Cards 2,118,383 1,853,657 2,370,061 2,278,360 1,572,041 2,080,662 1,722,987 13,996,151$ 50.07% Lockbox Deposits 1,176,928 904,658 1,003,875 1,162,475 707,921 848,106 822,102 6,626,065$ 23.71% Pay Near Me 11,821 11,616 14,142 11,316 9,254 11,254 5,868 75,272$ 0.27% Total Revenue to Bank 4,359,302$ 3,438,377$ 4,596,910$ 4,972,646$ 2,941,173$ 4,186,107$ 3,457,446$ 27,951,962$ 100.00% NSF (10,757) (15,745) (17,442) (15,892) (14,628) (20,682) (31,415) (126,561)$ Net deposits 4,348,546$ 3,422,632$ 4,579,468$ 4,956,754$ 2,926,545$ 4,165,425$ 3,426,031$ 27,825,401$ JAN 2026 JAN 2025 Variance
UUT Water 15,324$ 77,444$ (62,120)$
UUT Sewer 38,023 177,715 (139,692)
Ambulance 4,064 5,319 (1,254)
Total 57,412$ 260,478$ (203,066)$
JAN 2026 JAN 2025 Variance
Non-Rate / Extra Territorial
Revenue 193,534$ 169,267$ 24,268$
Utility Revenue 3,145,808$ 3,850,632$ (704,825)
Total 3,339,342$ 4,019,899$ (680,557)$
188
11 I. Non-Rate Revenue + Utility Revenue Collected Fiscal Year-to-Date

J. Increase in Cash Collections and Fund Distribution—Prior Year Comparison

Jul 2025 Aug 2025 Sept 2025 Oct 2025 Nov 2025 Dec 2025 Jan 2026 Total Non-Rate Revenue
Cell Tower Rent,Llease 21,485 17,154 15,080 53,897 13,580 14,324 4,330 139,851 Interest Income - - - - - - - -

NRR-FOG - - - - - - - - Municipal Water Sales - - - - - 349,264 - 349,264 Extra Terr- Sewage 169,483 6,711 107,820 583,011 35,551 174,217 170,577 1,247,370 Non-Rate Misc Water - - - - - - 1,032 1,032 Abatement of Expenses - - - - - - - - Water Meter Lost/Damaged/Repl 22,650 17,176 13,295 16,075 14,366 1,557 10,659 95,778 Misc Fees - New Occ., Same Day Svc 10,815 7,182 7,522 9,355 6,949 7,834 6,896 56,552 Miscellaneous Revenue - Sewer - - - - - 5 - 5 NSF - - - - - - 40 40 Total Non-Rate Revenue 224,433$ 48,223$ 143,717$ 662,339$ 70,447$ 547,200$ 193,534$ 1,889,893 Utility Revenue
Water Penalty 30,460 33,752 31,754 37,988 34,640 29,186 27,933 225,713 Sewer Penalty 74,191 48,802 42,100 54,993 40,418 43,022 48,483 352,009 Turf Removal, Hi-Eff Rebate (100) - - - - - - (100) Water Deposits Billed 16,142 15,863 16,027 17,938 13,085 7,527 16,427 103,009 Hydrant Deposits 315 158 161 68 - 197 - 899 Sewer Deposits Paid - - - - - - - - Sewer Deposits Billed 16,204 16,667 15,480 15,055 12,065 9,677 12,804 97,951 Water 1,329,427 1,148,584 1,723,704 1,493,556 835,225 1,291,024 970,084 8,791,604 Sewer 2,760,649 1,949,745 2,492,623 2,526,711 1,594,009 2,385,765 2,006,500 15,716,001 Unapplied Credits 26,588 50,012 109,984 80,529 180,113 (93,772) 63,577 417,031 Bad Debt Sewer - - - - - - - - Bad Debt Water - - - - - - - - Tax Roll Sewer - - - - - - - - Collection Agency - Water - - - - - - - - Collection Agency - Sewer - - - - - - - - Collection Agency - Misc Water - - - - - - - - Total Utility Revenue 4,253,876$ 3,263,582$ 4,431,832$ 4,226,839$ 2,709,556$ 3,672,625$ 3,145,808$ 25,704,118$ Total Non-Rate + Utility Rev. 4,478,309 3,311,805 4,575,549 4,889,178 2,780,002 4,219,825 3,339,342 27,594,011 Increase to Cash
per Incode
Adjustments
Required to GL
Cash
Fund 660-Sewer Fund 670-Water Total Cash Per
GL
Adjustments To
Match RUA to Bank
Cash/CC/Cks
Deposit To Bank
Jan 2026 3,396,754 32,859 2,250,845 1,113,049 3,396,754 60,693 3,457,446 Jan 2025 4,280,377 9,792 3,157,640 1,112,945 4,280,377 (412,839) 3,867,538 189

12 K. Non-Rate and Extraterritorial Customer Accounts Receivable Aging

AT&T makes annual payment of cell tower.

Social Science Service (Cedar House) balance reflects current service fees.

City of Fontana is current with its obligations.

Colton Unified School District has no balance due.

County of San Bernardino is current with its obligations.

Rialto Bioenergy Solutions has made payment of past due balances in February.

Vertical Bridge Holdco, LLC and Sprint: Vertical Bridge and Sprint have been contacted for open Invoices as well.

San Bernardino County Waste System Division’s has no balance due.

Name
Total as of
1/31/2026 Current 31 to 60 days 61 to 90 days >90 days
AT&T - Easton -$ - - - - Cedar House 6,805 6,805 - - - CITY OF FONTANA 131,182 131,182 - - - Colton Unified School District - - - - - County of San Bernardino-CSA 70 BL 20,948 20,948 - - - Rialto BioEnergy Facilities 147,715 48,250 99,465 - - Sprint-Nextel 7,603 2,074 - - 5,530 San Bernardino Co Waste System Div - - - - - SB Valley Mun Water District - - - - - Vertical Bridge Holdco, LLC (CIG) 10,374 2,830 2,830 - 4,714 Grand Total 324,628$ 212,089$ 102,296$ -$ 10,243$ 190
1 RIALTO WATER

MONTHLY OPERATIONS REPORT

Reporting Period:

January 2026

Prepared for: Rialto Water Services
Prepared by: Veolia Water West Operating Services

191
2 RIALTO WATER

OPERATIONS AND MAINTENANCE REPORT

192
3 RIALTO WATER

MONTHLY OPERATIONS REPORT

193
4 A. Water Production Totals
Total water delivered into the Rialto system this month was 701.73 acre-feet. 590.07 acre-feet was delivered into the system from the groundwater wells (City 4A production is included in the well total). 40.52 acre-feet was delivered via the BLF transmis sion system (City 4A production has been deducted). 71.14 acre-feet came from the OPRTP.

194
5 JANUARY 2026 DAILY BOOSTER TOTALS IN ACRE FEET
DATE
Booster
1 Booster 2 Booster 3 Booster 4 Booster 5 Booster 6-9 Booster 10 Booster 11 1/1/26 0.00 0.00 2.46 0.00 7.17 3.01 0.00 0.00
1/2/26 0.00 0.00 0.00 0.00 4.05 0.00 0.00 0.00
1/3/26 0.00 0.00 2.32 0.00 7.17 2.41 0.00 0.00
1/4/26 0.00 0.00 6.09 0.00 0.00 8.54 0.00 0.00
1/5/26 0.00 0.00 6.28 0.00 0.00 6.91 0.00 0.00
1/6/26 0.00 0.00 6.49 0.00 0.00 6.75 0.00 0.00
1/7/26 0.00 0.00 6.75 0.00 0.00 7.12 0.00 0.00
1/8/26 0.00 0.00 3.12 0.00 0.00 2.27 0.00 0.00
1/9/26 0.00 0.00 3.71 0.00 1.37 2.41 0.00 0.00
1/10/26 0.00 0.00 0.49 0.00 5.90 0.78 0.00 0.00
1/11/26 0.00 0.00 7.01 0.00 6.35 2.13 0.00 0.00
1/12/26 0.00 0.00 6.00 0.00 0.00 5.39 0.00 0.00
1/13/26 0.00 0.00 4.76 0.00 0.00 6.38 0.00 0.00
1/14/26 0.00 0.00 0.02 0.00 4.35 0.55 0.00 0.00
1/15/26 0.00 0.00 0.79 0.00 2.46 2.11 0.00 0.00
1/16/26 0.00 0.00 1.27 0.00 4.07 3.17 0.00 0.00
1/17/26 0.00 0.00 3.59 0.00 2.57 6.61 0.00 0.00
1/18/26 0.00 0.00 0.00 0.00 2.16 5.60 0.00 0.00
1/19/26 0.00 0.00 13.98 0.00 0.00 0.00 0.00 0.00
1/20/26 0.00 0.00 3.38 0.00 0.00 11.41 0.00 0.00
1/21/26 0.00 0.00 5.34 0.00 0.00 8.01 0.00 0.00
1/22/26 0.00 0.00 3.35 0.00 0.89 5.58 0.00 0.00
1/23/26 0.00 0.00 0.00 0.00 2.73 3.47 0.00 0.00
1/24/26 0.00 0.00 2.52 0.00 2.64 4.34 0.00 0.00
1/25/26 0.00 0.00 5.40 0.00 0.00 9.57 0.00 0.00
1/26/26 0.00 0.00 4.52 0.00 0.00 5.14 0.00 0.00
1/27/26 0.00 0.00 0.00 0.00 0.00 2.07 0.00 0.00
1/28/26 0.00 0.00 0.00 0.00 0.00 2.46 0.00 0.00
1/29/26 0.00 0.00 0.00 0.00 0.00 1.06 0.00 0.00
1/30/26 0.00 0.00 0.00 0.00 1.19 3.12 0.00 0.00
1/31/26 0.00 0.00 0.00 0.00 1.47 4.94 0.00 0.00
TOTAL 0.00 0.00 149.25 0.00 40.11 108.97 0.06 0.00
MIN 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
MAX 0.00 0.00 17.79 0.00 6.98 9.82 0.04 0.00
AVE 0.00 0.00 4.98 0.00 1.29 3.52 0.00 0.00

195
6 B. Static Water Levels
All City of Rialto wells are sounded each month, both active and inactive well sites.

Depth-to-water is measured from the well head to the static water surface.

Increases in depth-to-water represent a decrease in static water level.

Well levels
Wells Depth to
Pump
Historical
Maximum Depth
to Water Dec Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Chino # 1 (580
ft) In-active
well 429' 410' 412' 414' 414' 413' 413' 413' 411' 410' 410' 410' 411’ 411’ 411’ Chino # 2 (493
ft) 369' 342' 341' 335' 338' 335' 337' 334' 334' 333' 331' 333' 334’ 334’ 321’ City # 1 (260 ft) 392' 121' 126' 121' 122' 119' 117' 119' 121' 120' 120' 122' 122’ 117’ 121’ City # 2 (500 ft) 402' 147' 146' 128' 130' 128' 122' 129' 131' 125' 126' 126' 126’ 128’ 130’ City # 3 (525 ft)
Out of Service 505' 414' 414' 415' 416' 416' 414' 417' 418' 418' 417' 417’' 417’ 417’ 420’ City # 4A (528
ft) 406' 381' 374' 377' 375' 373' 362' 367' 370' 366' 360' 359' 363’ 362’ 362’ City # 5 (385 ft)
In-active well 364' 318' 318' 321' 318' 318' 316' 316' 316' 316' 317' 318' 319’ 317’ 317’ Rialto # 1 (650
ft) In-active
well 588' 561' 555' 571' 569' 565' 563' 564' 565' 562' 563' 566' 566’ 565’ 566’ Rialto # 2 (550
ft) In-active
well 502' 499' 501' 496' 495' 502' 496' 498' 498' 497' 496' 494' 496’ 495’ 496’ Rialto # 3 (569
ft) 478' 472' 473' 473' 472' 472' 470' 470' 472' 471' 471' 474' 474’ 474’ 475’ Rialto # 4 (450
ft) In-active
well 418' 413' 414' 415' 416' 415' 415' 414' 413' 414' 413' 412' 412’ 412’ 411’ Rialto # 5 (560
ft) 387' 385' 385' 384' 384' 386' 386' 387' 387' 387' 386' 386' 386’ 386’ 385’ Rialto Well # 7
In-active well 362' 362' 360' 360' 359' 353' 356' 354' 356' 357' 357' 357' 359’ 359’ 359’ Miro # 3 (563 ft) 492' 484' 484' 484' 484' 483' 483' 481' 480' 479' 480' 480' 478’ 481’ 480’ EW-1 (650 ft) 480' 475' 474' 472' 475' 475' 474' 475' 460' 471' 467' 480' 477’ 478’ 479’

196
7 II. REGULATORY
All State of California and public health agency regulatory requirements were met.

Sample Date Sample Site Location Results
1/14/2026
Type of Sampling Chino
2 City
2 City
4A
Rialto
3 Rialto
5 Miro
3 EW-1

BLF
Cactus
BLF 6-
9 OPRT
P
Total Coliform A A A A A A OUT OF

SERVICE A A A
E. Coli A A A A A A A A A
Nitrate as N 3.2
Perchlorate (CLO4) <1.0* 5.6* <1.0 6.7*
Total Dissolved Solids 240 220 320 240 200 230 330 320 220 *Sample is from the well head so it is before disinfection & treatment. Treatment is performed before it goes into the distribution system. Water going into the distribution system is <1.0 (non-detect). 197
8 B. Sample Site Location Results
Rialto Distribution Sample Results
JANUARY 2026
Sample Location Free Cl Res (Field) Total Coliform E. Coli Apparent Color Odor Threshold Turbidity CYCLE 1 - 1/07/26 mg/l P/A P/A Color Units TON NTU
335 W. Rialto 1.10 A A
1228 W. Merrill 1.60 A A
256 N. Fillmore 1.50 A A
987 W. Grove 1.60 A A
978 N. Driftwood 1.20 A A
1451 N. Linden 1.00 A A
469 W. Jackson 1.20 A A
935 E. Mariposa 1.20 A A
1000 N. Joyce 1.30 A A
766 N. Chestnut 1.20 A A
149 W. Victoria 1.20 A A
313 E. McKinley 1.20 A A
609 E. South 1.20 A A
273 E. Alru 1.10 A A
1161 S. Lilac 1.20 A A
101 E. Valley 1.10 A A
CYCLE 2 - 1/13/26 mg/l P/A P/A Color Units TON NTU
210 N. Park 1.10 A A
101 S. Larch 1.20 A A
320 N. Wisteria 1.20 A A
861 W. Grove 1.00 A A
1168 N. Glenwood 1.10 A A
1320 N. Fitzgerald 1.10 A A
860 N. Willow 1.30 A A
209 E. Cornell 1.30 A A
643 E. Margarita 1.20 A A
1170 N. Terrace Rd. 1.30 A A
681 E. Erwin 1.30 A A
402 E. Merrill 1.20 A A
261 W. Wilson 1.10 A A
532 S. Iris 1.30 A A
281 W. Hawthorne 1.20 A A
379 W. Valley 1.20 A A

198
9 Rialto Distribution Sample Results
JANUARY 2026
Sample Location
Free Cl Res
(Field)
Total
Coliform
E.

Coli
Apparent
Color
Odor
Threshold Turbidity
CYCLE 3 – 1/21/26 mg/l P/A P/A Color Units TON NTU
236 N. Willow 1.30 A A <3.0 1 <0.10
775 E. Foothill 1.30 A A <3.0 1 <0.10
878 N. Primrose 1.70 A A <3.0 1 <0.10
369 E. Van Koevering 1.30 A A <3.0 1 <0.10
274 W. Valencia 1.60 A A <3.0 1 <0.10
1566 N. Fillmore 1.30 A A <3.0 1 <0.10
932 N. Idyllwild 1.30 A A <3.0 1 <0.10
644 N. Smoketree 1.30 A A <3.0 1 <0.10
605 W. Rosewood 1.30 A A <3.0 1 <0.10
1189 W. Second 1.40 A A <3.0 1 <0.10
775 W. Rialto 1.30 A A <3.0 1 <0.10
211 E. Wilson 1.20 A A <3.0 1 0.37
595 E. Huff 1.20 A A <3.0 1 <0.10
1005 S. Riverside 1.30 A A <3.0 1 <0.10
794 S. Verde 1.30 A A <3.0 1 <0.10
1055 W. Bloomington 1.30 A A <3.0 1 0.27
CYCLE 4 - 1/27/26 mg/l P/A P/A Color Units TON NTU
375 S. Cactus 1.40 A A
101 S. Linden 1.20 A A
234 N. Larch 1.40 A A
575 N. Driftwood 0.30 A A
1355 W. Shamrock 0.30 A A
992 N. Yucca 1.20 A A
481 W. Cornell 1.20 A A
158. E. Shamrock 1.30 A A
749 E. Holly 1.30 A A
545 E. Victoria 1.30 A A
200 N. Sycamore 1.30 A A
407 E. Allen 1.20 A A
399 E. Montrose 1.20 A A
856 S. Orange 1.30 A A
911 S. Cactus 1.30 A A
220 W. Valley 1.20 A A
P/A + Present or
Absent

199
10 C. Violations
No violations were received during this reporting period.

D. Source Water Total Dissolved Solids (TDS)
Veolia has a goal of maintaining an acceptable blended TDS level between all its sources. This goal is achieved by shifting production to or from the lowest TDS wells or purchased low TDS water while adhering to the overall water supply strategy and meeting system demands. The TDS was 267 mg/L for the month of January as compared to 242 mg/L in December. The TDS levels are below the secondary maximum contaminant level requirements.

IV. CHEMICAL USE
Sodium hypochlorite is the only chemical added to the water system. A total of 2,082 gallons of sodium hypochlorite was used in January as compared to 2314 gallons used in December.
200
11 V. ELECTRICAL USE
Southern California Edison (SCE) data for January 2026. We will provide the data as it is received, thus will include yearly usage received to date.

SCE kWh
Year Month
Billed
Usage
2025 January 360,398
2025 February 294,421
2025 March 223,709
2025 April 428,976
2025 May 505,764
2024 June 575,467
2025 July 842,561
2025 August 669,021
2025 September 752,171
2025 October 654,454
2025 November 734,743
2025 December 647,384
2026 January 592,795
VI. WATER QUALITY COMPLAINTS
No complaints were received during this reporting period.

VII. OPERATIONS UPDATE
The overall operational strategy is to meet the daily water demand. The City of Rialto water system has six operational wells, one of which is owned by the County of San Bernardino and operated by Veolia; Oliver P. Roemer Treatment Plant (OPRTP), which is jointly owned by the City (25%) and West Valley Water District (WVWD); purchased water through the Baseline Feeder (BLF) system from San Bernardino Valley Municipal Water District (SBVMWD); and, if required to meet demand, additional water can be supplied by the City of San Bernardino (CSB) through the BLF for emergency supply only with no guarantee of actual delivery. Water produced from City Well 4A discharges into the BLF and its production is included in deliveries from that shared transmission line when City Well 4A is in service.
201
12 The overall pumping strategy is based on adjudicated rights, well availability, remediation requirements, and quality of source, cost to operate, and varying weather conditions. TDS effluent concentrations for the City of Ria lto WWTP are taken into consideration when operating the facilities and water sources.

A. Operational Wells
EW-1 well was out of service due to pump issues.

Valve Activity
On the basis of information collected in 2019, Veolia now has a baseline assessment of all valves and has initiated a new cycle of valve exercising . Five valves were exercised in the month of December.

Valve Turning Progress
Valves
Turned
2020 530
2021 340
2022 463
2023 750
2024 379
2025 338
2026 67
B. Hydrant Flushing
There are 63 hydrant/dead ends that are flushed annually to maintain water quality. All annual flushing were completed in December.

Hydrant/Dead End Flushing
Progress
2026
January 0
February 0
March 0
April 0
May 0
June 0
July 0
August 0
September 0
202
13 October 0
November 0
December 0
Total 0
Progress % (100)
C. Sanitary Survey
DDW performed field site visit s on May 22 and August 22, 2024. The results of the sanitary survey were received on September 19, 2024. All minor deficiencies have been corrected and submitted to DDW.

VIII. ASSET MANAGEMENT
The following work orders were completed by Water production staff for the month of February:
• Preventive Maintenance –502
• Corrective Maintenance –0
• Predictive Maintenance –0
268 – PMs planned for February 2026
A. Main Breaks, Service Leaks, Adverse Water Quality and Health/Safety Issues
The following work orders were completed by Water distribution staff for the month of December:
• Main line – 0
• Service line – 3
• Hydrants – 6 replacements
• Angle Meter Stop – 15
• Meter Box & Lid Replacement – 14
• Meter Leaks/ Replacements - 22
203
14 B. Major Equipment and/or Machinery Outages
EW-1 well was out of service due to pump issues.

IX. RAINFALL TOTALS

204

RIALTO WASTEWATER

MONTHLY OPERATIONS REPORT

Reporting Period:

January 2026

Prepared for: Rialto Water Services
Prepared by: Veolia Water West Operating Services
205

RIALTO WASTEWATER

OPERATIONS AND MAINTENANCE REPORT

Contents

EXECUTIVE SUMMARY

1. Collection System / Customer Service Log
a. Collection System Activities
b. S.S.O. dates
c. Customer Service Call Outs

2. Wastewater Treatment Plant - Monthly Overview
a. Significant events during the month

3. Treatment Facility Performance / Laboratory Activities a. See attached Monthly Performance Summary
b. Summary of Notices and Laboratory Tests / Reports filed with government agencies c. Effluent Specifications Exceedance Discussion

4. Monthly Safety Program Overview

5. Biosolids, Chemicals, and Utilities
a. Monthly Biosolids Production
b. Monthly Chemical Consumption
c. Monthly Utilities Consumption

6. Odor Complaints / Actions Taken

7. Major Equipment and/or Machinery Outages

9. Complaint Logs

TABLES

● Treatment Facility – Monthly Performance Summary
● Collection System- Monthly Pipe Cleaned
206

RIALTO WASTEWATER

MONTHLY OPERATIONS REPORT

EXECUTIVE SUMMARY

Highlights of this month’s Wastewater O&M report include the following:

● The treatment plant performed well and met all compliance parameters. ● There were four residential call-outs for sewer collection issues.

1. Collection System/Customer Service Log

a. Collections group activities this month:

Category Current Month
Statistics
Prior Month Statistics 2026 Year to Date
Statistics
Sanitary sewers are cleaned using the
conventional method, including feet, which
includes “Hot spot cleaning.”
26,446.62 0 26,446.62
Sanitary sewers assessed using the SL-RAT
method, feet 0 0 0
CCTV Inspection, miles (26 is the annual goal)* 3.18 0 3.18 Manhole Inspections 0 0 0
USA Dig Alert Markings, count 24 0 24
Residential call-outs 4 0 4
Sanitary sewer overflows 0 0 0

b. S.S.O. dates:
c. Customer Service Call Outs – See Item 9 for details.

2. Wastewater Treatment Plant – Monthly Overview
● NPDES discharge compliance parameters were achieved.

a. Significant events during the month were: None.

3. Treatment Facility Performance/Laboratory Activities

a. See the attached Table 1, Monthly Performance Summary.

b. Summary of Notices and Laboratory Tests/Reports filed with government agencies.

The monthly submittal of State/Federal discharge monitoring reports was completed promptly.

c. Effluent specification exceedance discussion
See Section 2 above. N/A

207

4. Monthly Safety Program Overview

Category Monthly Statistic
Safety Training Topics 4
Lost Time Incidents count* 0
Recordable Incidents, count 0
Near Miss Incidents, count 0
Vehicle Incidents, count 0

*A lost time incident has not occurred since 9-3-2020, totaling 1,976 days.

5. Biosolids, Chemicals, and Utilities

a. Monthly Biosolids Production

Biosolids Current Month
Statistics
Prior Month Statistics
(2025)
2026 Year-to-Date
Statistics
Wet Tons Produced 1,676.37 1,620.2 1,676.37

b. Monthly Chemical Consumption

Chemical Current Month
Gallons Used
Prior Month (2025)
Gallons Used
Sodium Hypochlorite, Tertiary Disinfection 33,416 30,904 Sodium Bisulfite, Discharge Dechlorination 12,583 11,054 Ferrous Chloride, Digester Gas Conditioning 3,709 4,070 Polymer, Gravity Belt Thickener 344 496
Polymer, Belt Filter Press 764 834
Alum, Tertiary Filters 0 1

c. Monthly Utilities Consumption

Utility Current Month
Statistics
Prior Month Statistics
(2025)
Electricity WWTP, KWH 438159 460,600
Electricity Lilac LS, KWH 1038 716
Electricity Sycamore LS, KWH* 532 515
Electricity Ayala LS, KWH 8468 8,376
Electricity Agua Mansa LS, KWH 2404 2,547
Electricity Cactus LS, KWH 1961 1,636
Electricity Ramrod LS, KWH 704 673
Frisbee Park LS, KWH 732 780
El Rancho Verde LS, KWH 2449 2,188
Natural Gas WWTP, Therms 7363 7,243
* LS is in bypass mode, pending CIP completion

208

6. Odor Complaints Received/Actions Taken
No odor complaints were received this month.

7. Major Equipment and/or Machinery Outages
● Sludge Holding Tank
● Aeration Basin #1 is currently offline.

8. Outside Agency Activities during the Month
a. Government agency or property insurance inspections
San Bernardino Fire District Office of Fire Marshall Hazardous Materials Section Gloria Valdivia REHS ICC-UI

b. Government agency environmental, health, or safety tests/monitoring Permit testing was completed for this month

c. Government agency notices of violation received
No notices were received.

d. Government agency monitoring
Routine monitoring reports were submitted.

e. Other matters of concern
None

9. Customer Service Callout Details Log

Date Address Comments Personnel Manhole To
Manhole
1/9/2026 1032 N Marcella The resident called due to lateral backing up to the home.

Upon inspection, the main was flowing freely. Resident
was informed that the lateral flows through the
backyard, and they should have a plumber check.

ET
1/16/2026 419 E Merrill Reported sewer main backup, the main line was checked and is flowing freely. Resident advised to call a plumber.

ET
1/20/2026 539 McKinley The resident reported a sewer odor at the residence.

Surrounding manholes and sewer main lines checked.

The manholes were all corked, and the main lines were
running freely.

ET
1/27/2026 768 N Brierwood The resident reported a sewer backup. The main was checked and was flowing freely. The resident informed us there was a plumber on the way to check the lateral all the way to the mainline
BVO

209

Table 1 Summary

210

211

212

Table 2 Summary

213

214

Table 3 Summary

215

216

Monthly Sewer Line Cleaned

217

218
City of Rialto Project Name
Estimated Total
Project Capital Cost Funding Awarded
Funding
Type Funding Program Name
Remaining
Funding Needed Notes
$1,050,000 State California State Water Resources Control Board: 2022 Community Funded Projects
Funding received by Rialto in October 2025. Agreement
Secured.
$2,149,748 State
California Department of Water Resources (DWR)/Santa Ana Watershed Project Authority (SAWPA): Integrated Regional Water Management (IRWM) Implementation Grants
Agreement Secured.
$2,000,000 Federal
U.S. Environmental Protection Agency: 2023 Community Funded Projects
Agreement Pending Endangered Species Act (ESA).
$3,000,000 Federal U.S. Bureau of Reclamation: Environmental Water Resources Projects
Agreement Pending USBR Review Process.
$2,000,000 Federal U.S. Bureau of Reclamation: Water and Energy Efficiency Grant Agreement Secured. $6,000,000 State California Department of Water Resources: Urban Community Drought Relief Grant
Agreement Secured.

Well City 3A Groundwater Treatment System $7,637,760 $2,000,000 Federal U.S. Bureau of Reclamation: Drought Resiliency Projects $5,637,760 Agreement Secured.

Septic-to-Sewer Pilot Project $319,000 $319,000 State
California Department of Water Resources (DWR)/Santa Ana Watershed Project Authority (SAWPA): Integrated Regional Water Management (IRWM) Implementation Grants
$0 Agreement Pending DWR Review Process.

Resilient Power Infrastructure For Critical Water
Facilities-Generators $11,039,406 $0 Federal
California Office of Emergency Services (Cal OES)/U.S. Federal Emergency Management Agency (FEMA) Hazard Mitigation
Grant Program (HMGP)
$11,039,406
Grant application submitted to Cal OES 9/2025 requesting $8.3 million federal funding. Pending Cal OES and FEMA
review. Cal OES announcements for advancement to FEMA
review anticipated 4/2026.Septic-to-Sewer Disadvantaged Communities Planning Project
$625,000 $0 State California State Water Resources Control Board: Clean Water State Revolving Fund $625,000
On California Clean Water State Revolving Fund (CWSRF)
FY25/26 Fundable list. Agreement Pending CWSRF Application Review.

Total $18,518,748
RUA FEDERAL AND STATE GRANT AWARDS AS OF MARCH 2026
$0
$8,200,000Dr. June Hayes and Deborah Robertson Habitat
Nature Center (Nature Center) $252
Advanced Metering Infrastructure (AMI) $8,000,000
March 2026
219
RUA FUNDING PRIORITIES MARCH 2026
City of Rialto Project Name
Priority
Designation
Estimated Total
Project Capital
Cost
Grant
Target
(1)
Remaining
Funding Needed Notes
Well City 3A Project First Priority $7,637,760 100% $5,637,760 $2 million federal funding awarded to Rialto from U.S. Bureau of Reclamation.

Etiwanda Water Main First Priority $5,408,000 50% $2,704,000 4" S Oakdale & S Marcella Main Second Priority $4,211,491 50% $2,105,746 Service line: South Alice, South Palm, West Vodden,
Alru St. Third Priority $1,588,654 100% $1,588,654
Service line: Bonnie View (Acacia and Eucalyptus) Third Priority $3,239,608 50% $1,619,804 Resilient Power Infrastructure For Critical Water
Facilities-Generators First Priority $11,039,406 100% $11,039,406 Grant application requesting $8.3 million in federal funding submitted to the U.S.

Federal Emergency Management Agency (FEMA).

Sycamore Sewer Conveyance Improvements:

Upsizing Sewer: Sycamore First Priority $5,740,800 50% $2,870,400 Sycamore Sewer Conveyance Improvements:

Upsizing Sewer: Sycamore Ave (Huff to Randall) First Priority $2,024,755 100% $2,024,755 Pressure Relief Valve First Priority $648,960 100% $648,960 Total $30,239,485
Note:
(1) Grant Target reflects the estimated share of project costs staff intends to pursue through grants. Some grant programs require local matching funds and do not fund 100% of project costs; therefore, select projects are shown at 50% to reflect anticipated cost-share requirements and realistic award assumptions.

March 2026
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Sachin Cha wla | Dir ect or of Utilities | 150 S . P alm A v enue , Rialt o , CA 9 23 76 | Email: scha wla@rialt oca . g o v | Cell: 909-644-0 71 0 W ebsit e: www .Rialt oCa . g o v
5M
$41.

KEY PROJECTS FOR FEDERAL / STATE INVESTMENT
About the City of Rialto
The City of Rialto, California is a full-service municipal agency located in the Inland Empire of San Bernardino County, one of Southern California’s fastest-growing economic and logistics regions. Serving more than 100,000 residents, the City maintains essential water, wastewater, transportation, and public safety infrastructure that supports community health, economic activity, and regional growth.

Rialto continues to prioritize investments in infrastructure reliability, emergency preparedness, and water supply security to meet future demands and maintain high-quality public services. For more information about the City of Rialto, please visit www.RialtoCa.gov

I N F R A S T R U C T U R E P A R T N E R S H I P R E Q U E S T Etiwanda Transmission Infrastructure Renewal Project
Infrastructure Renewal | Water Efficiency | Public
Safety | Existing System Reliability — $5.408 M
Oakdale & Marcella Water Main Replacement &
Reliability Improvement
Aging Infrastructure Replacement | Existing System
Reliability | Public Health Protection — $4.211 M
Bonnie View Community Water Service Reliability
Safe Drinking Water Access | Public Health Protection Infrastructure Modernization — $3.239 M
Water System Pressure Management & Infrastructure
Protection
Existing System Reliability | Risk Reduction — $649 K Critical Water Facility Backup Power & Generator
Resilience
Grid Resilience | Critical Infrastructure Protection
Emergency Operations Continuity — $11 M
City Well 3A Arsenic Treatment Facility (2,750 AFY
Drinking Water Supply)
Water Independence | Drought Preparedness | Long-
Term Water Supply Security — $7.637 M
Sycamore Sewer Reliability & Overflow Prevention
Public Health Protection | Overflow Prevention
Existing System Reliability — $7.764 M
Neighborhood Watermain Replacement & Reliability
(South Alice / South Palm / West Vodden / Alru)
Safe Drinking Water Access | Public Health Protection
Infrastructure Modernization — $1.589 M
C o n s t r u c t i o n - r e a d y c r i t i c a l w a t e r i n f r a s t r u c t u r e p r o j e c t s t h a t p r o t e c t p u b l i c h e a l t h , e n s u r e e m e r g e n c y o p e r a t i o n s c o n t i n u i t y , a n d s t r e n g t h e n r e g i o n a l e c o n o m i c s e c u r i t y .

Why Invest?
• Protects Inland Empire freight & logistics corridor
• Supports 100,000+ residents
• Protects Santa Ana River groundwater basin
• Construction-ready; project environmental
review underway or complete
⭐ R I A L T O

CONTACT
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Water SubcommitteeMarch 26, 2026

Water Subcommittee
March 26, 2026