For City Council Meeting May 28, 2024
TO: Honorable Mayor and City Council
APPROVAL: Michael Milhiser, Interim City Manager
FROM: Toyasha Sebbag, Assistant to the City Manager
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Request that the City Council and Rialto Utility Authority Board: 1) Authorize Professional Service Agreement Amendment No. 3 with Soto Resources in the amount of $100,000 to provide additional as-needed grant writing assistance; and 2) Authorize the City Manager/Executive Director to Execute all Related Documents.
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RECOMMENDATION
Staff recommends that the City Council and Rialto Utility Authority Board: 1) Authorize Professional Service Agreement Amendment No. 3 with Soto Resources in the amount of $100,000 to provide additional as-needed grant writing assistance; and 2) Authorize the City Manager/Executive Director to Execute all Related Documents.
BACKGROUND
Soto Resources was awarded a Professional Services Agreement (PSA) on July 13, 2021, for $50,250 to provide funding research and strategy reports for the Rialto Habitat Nature Center (RHNC) and as-needed grant writing assistance to the City’s Utilities Division. A First Amendment of the PSA was executed on October 26, 2021, for $150,250, and a Second Amendment on December 13, 2022, for $100,000.
ANALYSIS/DISCUSSION
Since July 2021, Soto Resources has brought in $17.7 million in grant funding for the following projects (ATTACHMENT 1):
1. FY2022 Community Funded Projects - Rialto Habitat Nature Center (Lake Rialto).
Awarded $1.05 Million.
2. FY2023 Community Funded Projects - Rialto Habitat Nature Center (Lake Rialto).
Awarded $2.0 Million.
3. Santa Ana Watershed Project Authority (SAWPA) One Water One Watershed (OWOW) Prop 1 Round 2 - Rialto Habitat Nature Center (Lake Rialto).
Awarded $2.15 Million.
4. United States Bureau of Reclamation (USBR) Water and Energy Efficiency Grant - AMI Project.
Awarded $2.0 Million.
5. Department of Water Resources (DWR) Urban Community Drought Relief Grant - AMI Project.
Awarded $6.0 Million.
6. United States Bureau of Reclamation (USBR) Drought Resiliency Projects - Well 3A Groundwater Treatment Facility.
Awarded $2.0 Million.
7. Southern California Association of Governments (SCAG) REAP 2.0 Regional Utilities Supporting Housing - Well 3A Groundwater Treatment Facility.
Awarded $2.5 Million; however, funding paused due to the state budget.
Part of their successful management style includes weekly meetings with staff to discuss anticipated and potential capital improvement projects and to identify new funding opportunities. In addition, internal and external action items including meetings with state and federal grant staff, grant management of approved grants, and to-do items are tracked meticulously to ensure the City/Rialto Utility Authority (RUA) does not miss upcoming funding opportunities such as:
• Rialto Habitat Nature Center Project/Coastal Conservancy (Santa Ana River Conservancy).
• Septic-to-Sewer Disadvantaged Communities Project/CWSRF Construction and Connection Funding.
• Lead and Copper Rule Revisions Residential Change Out Programs.
• Area-Wide Security Assessment.
Grant opportunities are regularly announced by the state and federal governments. The City of Rialto/Rialto Utility Authority currently has two (2) applications totaling $5.425 million in potential grant funding pending.
On March 27, 2024, the Water Subcommittee reviewed this item and provided feedback that the item be moved forward to the Utilities Commission.
On April 16, 2024, the Utilities Commission heard this item and recommended that the City Council approve Professional Service Agreement Amendment No. 3 with Soto Resources in the amount of $100,000 to provide additional as-needed grant writing assistance.
ENVIRONMENTAL IMPACT
This request 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
This action is consistent with Guiding Principle 3 in the General Plan:
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 and supports the staff report and the PSA Amendment with Soto Resources.
FINANCIAL IMPACT
Operating Budget Impact
Funds are available in Contract Services’ Account No. 56807860-52011, which has an available balance of $375,834.
Capital Improvement Budget Impact
There is no Capital Improvement Budget impact with the proposed action.
Licensing
Soto Resources shall pay an additional Business License tax amount of $100, as well as Administration and State fees that might be required.