For Water Subcommittee Meeting July 24, 2025
TO: Water Subcommittee Members
APPROVAL: John Rossi, Interim Utilities Director
AUTHOR: Toyasha Sebbag, Assistant to the City Manager
Title
Staff Request that the Water Subcommittee Provide Feedback on a Contract Amendment with Soto Resources in the Amount of $62,100 for the Preparation of the Cal OES Hazard Mitigation Grant Program (HMGP).
(ACTION)
Body
RECOMMENDATION
Staff recommends that the Water Subcommittee provide feedback on a contract amendment with Soto Resources in the amount of $62,100 for the preparation of the Cal OES Hazard Mitigation Grant Program (HMGP).
BACKGROUND
On May 13, 2025, the City Council/Rialto Utility Authority (RUA) Board authorized staff to submit a Notice of Interest (NOI) and full 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. As a result, the City/RUA was formally invited to submit a full sub-application for funding consideration by 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.
Staff is seeking feedback from the Water Subcommittee on a proposed contract amendment with Soto Resources in the amount 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.
Capital Improvement Budget Impact
There is no impact on the Capital Improvement Budget.
ATTACHMENT(S)
Soto Resources Proposal for RUA Cal OES Sub-application