For City Council Meeting [August 12, 2025]
TO: Honorable Mayor and City Council
FROM: Tanya Williams, City Manager
AUTHOR: Nicole Hemmans, Senior Administrative Analyst
Title
Request City Council/Rialto Utility Authority Board to: (1) Authorize Professional Service Agreement Amendment No. 4 with Soto Resources in the amount of $62,100 for the Preparation and submittal of the Cal OES Hazard Mitigation Grant Program (HMGP); and (2) Authorize the City Manager/Executive Director to Execute all Related Documents.
Body
RECOMMENDATION
Staff recommends that the City Council/Rialto Utility Authority Board:
1) Authorize Professional Service Agreement Amendment No. 4 with Soto Resources in the amount of $62,100 for the preparation and submittal of the Cal OES Hazard Mitigation Grant Program (HMGP); and,
2) Authorize the City Manager/Executive Director to execute all related documents.
BACKGROUND
On May 13, 2025, the City Council/Rialto Utility Authority (RUA) Board authorized staff to submit a Notice of Interest (NOI) and a complete application to the California Governor’s Office of Emergency Services (Cal OES) for up to $7 million in federal funding through the Hazard Mitigation Grant Program (HMGP) to support the Resilient Power Infrastructure for Critical Water Facilities Project.
On June 16, 2025, staff was notified by Cal OES that RUA’s NOI was accepted and deemed an eligible HMGP activity. Consequently, the City/RUA was formally invited to submit a full sub-application for funding consideration by the September 15, 2025, deadline.
ANALYSIS/DISCUSSION
Staff requested a proposal from Soto Resources, RUA’s grant consultant, who assisted with the preparation of the NOI and has secured over $21 million in funding for RUA over the past five years, to prepare the full sub-application.
The proposed project for the sub-application of the Resilient Power Infrastructure for Critical Water Facilities Project would install permanent backup generators at seven critical water system sites. This would ensure uninterrupted potable water service during emergency power outages, extended Public Safety Power Shutoff (PSPS) events, and wildfire-related disruptions. The targeted locations are:
1. City Well 2
2. Chino Well 2
3. Rialto Well 3
4. Booster Pump 1 Treatment Plant
5. Cactus Reservoir Booster Pump 5
6. City Well 4A
7. City 4A Booster 3A-1
The full HMGP application process is complex and may take up to three years before grant funds are obligated. Projects selected for funding will be subject to a 48-month period of performance, including construction and closeout.
Soto Resources would coordinate with staff and technical consultants to complete the sub-application, which includes:
• A detailed project description and scope of work
• Cost estimates for each of the seven generator sites
• Environmental and Historic Preservation (EHP) documentation
• A Benefit-Cost Analysis (BCA) demonstrating cost-effectiveness
• Letters of commitment for local match and long-term maintenance
The total estimated project cost is approximately $9.9 million (in 2030 dollars). The HMGP program will cover up to 75% of eligible project costs. RUA is responsible for the 25% local match, which is anticipated to be funded through state grants or existing capital improvement funds.
On July 22, 2025, staff requested feedback from the Water Subcommittee on the proposed contract Amendment 4 with Soto Resources. The Water Subcommittee’s response was to proceed with presenting this item to the City Council for approval of $62,100 to prepare and submit the full sub-application by the September 15, 2025, deadline.
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: 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 has reviewed the staff report.
FINANCIAL IMPACT
Operating Budget Impact
Funds are available in the Concession Agreement Contract Services Account’s 56807860-52011 and 56807960-52011.
The total compensation, including this 4th amendment to the original PSA, including reimbursement for actual expenses, the RUA will pay Consultant pursuant to the Agreement as amended by the Fourth Amendment, shall not exceed $462,600.00
Capital Improvement Budget Impact
There is no impact on the Capital Improvement Budget.
Licensing
Soto Resources is a current vendor and has an active business license.
ATTACHMENT(S)
Soto Resources Proposal for RUA Cal OES Sub-application
Notice of Intent Approved_Cal OES Email Notification (6/16/2025)
Resilient Power Infrastructure Benefits
Soto Resources Proposed Amendment 4
Soto Resources Executed Amendment 3
Soto Resources Executed Amendment 2
Soto Resources Executed Amendment 1
Soto Resources Executed Original PSA
Conflict of Interest Disclosure