New alliance may run Rialto’s water system

If the agreement has remained unchanged then there are still BIG problems in Rialto.

On the surface the BIG problems with the private agreement are:

guaranteed profits by 30% a year for 30 years.
Contract is for 30 years.
Lack of oversight on runaway rate increases.
Big development like Lewis Properties, Wal-Mart and Lytle Creek Project taking advantage of people who live here and are left to pick up the pieces.
Price it costs the City to get out of the deal if the contractor isnt performing as promised.

These are just a few of the issues on tap and that should draw us to a pause. We need to wait after the election and we have new council members sitting at the dias that will preside on the cares of the people not pander to their own political agenda.

Yes they are saying what we want to hear now but remember its an election year. It wont be the same this time next year if we don’t make major changes it will be more of the same.

Below is the article from the SB SUN writer Jim Stienberg who could care less what the community has to say he just regurgitates what the city feeds him. He seems to like their Cool-Aide.

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Jim Steinberg, Staff Writersbsun.com Posted:

07/11/2012 06:24:41 PM PDT

RIALTO – About two years ago, the West Valley Water District was looking to help the city of Rialto manage millions of dollars in upgrades to its aging water system. But it ended up walking away from the challenge, because raising that kind of money was beyond its capabilities, said Anthony “Butch” Araiza, district general manager.

Now West Valley – which already supplies water to half of Rialto’s residents – is taking another look at helping out.

But this time around, the financing aspect is not an issue.

The city of Rialto solved that problem by establishing a contract with San Francisco-based Table Rock Capitol, which is providing the financial backing for a 30-year concession agreement to outsource Rialto’s water and sewerage operations.

Table Rock, doing business as Rialto Water Services LP, has replaced New Jersey-based American Water Works Co. Inc. as the operator, and is talking with West Valley and Veolia North American about running the city’s wastewater plant.

West Valley’s staff members and its attorneys are reviewing the 1,600-page concession agreement “to make sure we feel comfortable,” Araiza said in an interview on Wednesday.

“We want to help, but we want to make sure this is not bad for West Valley Water District,” Araiza said.

Officials from Table Rock could not be reached for comment Tuesday or Wednesday.

In a prepared statement, Mike Story, Rialto’s city administrator, said on Tuesday that the concession agreement “stands unchanged.” Necessary improvements to both the water and wastewater systems will proceed as planned, he said.

The agreement “additionally enables the city to fill a damaging financial gap left by the closure of the redevelopment agency,” Story wrote.

Even though American Water is out of the picture, the planned rate increases will continue, as a Proposition 218 protest vote last month failed to muster the numbers needed to block the nearly 115 percent increase in water and sewer rates by 2016.

Contact Jim via email or by phone at 909-386-3855.