REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF THE SAN BERNARDINO COUNTY FLOOD CONTROL DISTRICT
AND RECORD OF ACTION
June 22, 2021
FROM
BRENDON BIGGS, Chief Flood Control Engineer, Flood Control District
TERRY W. THOMPSON, Director, Real Estate Services Department
SUBJECT
Title
Revenue License Agreement with Rialto Bioenergy Facility, LLC for Use of San Bernardino County Flood Control District Land in Rialto
End
RECOMMENDATION(S)
Recommendation
Acting as the governing body of the San Bernardino County Flood Control District (District):
1. Find that, pursuant to California Government Section 25526.6, a five-year license agreement, with three five-year options to extend the term of the license, with Rialto Bioenergy Facility, LLC, commencing on July 1, 2021 and ending on June 30, 2026, for the use of approximately 2,394 lineal feet of District land located on the west side of and running parallel to District’s Rialto Channel, south of Santa Ana Avenue in Rialto to operate and maintain an underground six-inch PVC water pipeline is in the public interest and that the license agreement will not substantially conflict or interfere with the District’s use of the property.
2. Approve a five-year revenue license agreement, with three five-year options to extend the term of the license, with Rialto Bioenergy Facility, LLC, commencing on July 1, 2021 and ending on June 30, 2026 for the use of approximately 2,394 lineal feet of District land located on the west side of and running parallel to District’s Rialto Channel, south of Santa Ana Avenue in Rialto to operate and maintain an underground six-inch PVC water pipeline for total revenue in the minimum amount of $53,688.
(Presenter: Terry W. Thompson, Director, 387-5000)
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COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). The District is funded by property taxes, fee revenue, and other local, state, and federal funding. The total revenue to be received by the District during this five-year license agreement is a minimum amount of $53,688, which includes $4,327 in retroactive fees for unlicensed use for the period of December 8, 2020 through June 30, 2021, and $49,361 in license fees, including the Annual Inspection Fee for the five-year period from July 1, 2021 through June 30, 2026. Revenue will be deposited in the District’s Zone 2 Fund (1920002522). Total revenue is as follows:
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Unlicensed Period |
Retroactive Fee |
Annual Inspection Fee |
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December 8, 2020 - June 30, 2021 |
$4,327 |
$0.00 |
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License Period |
License Fee |
Annual Inspection Fee |
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July 1, 2021 - June 30, 2022 |
$ 7,972 |
$1,236* |
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July 1, 2022 - June 30, 2023 |
$ 8,291 |
$1,236* |
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July 1, 2023 - June 30, 2024 |
$ 8,623 |
$1,236* |
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July 1, 2024 - June 30, 2025 |
$ 8,968 |
$1,236* |
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July 1, 2025 - June 30, 2026 |
$ 9,327 |
$1,236* |
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$43,181 |
$6,180 |
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Total Revenue: |
$47,508 |
$6,180 |
*As per District’s Annual Schedule of Fees Ordinance in effect on the anniversary date, currently Ordinance No. FCD 20-01.
BACKGROUND INFORMATION
The recommended action will provide for a five-year revenue license agreement, with three five-year options to extend the term of the license, with Rialto Bioenergy Facility, LLC (RBF), commencing on July 1, 2021 and ending on June 30, 2026, for the use of approximately 2,394 lineal feet of District land located on the west side of and running parallel to District’s Rialto Channel, south of Santa Ana Avenue in Rialto to operate and maintain an existing underground six-inch PVC water pipeline.
On December 8, 2020, the District approved a permit for RBF to utilize the pipeline for an organics recycling discharge line to facilitate community reclaimed water uses. Following RBF’s approval for a District permit, the District requested the Real Estate Services Department (RESD) negotiate a license agreement with RBF for the use of District land. Even though a license agreement had not been executed between the District and RBF, RBF began using the pipeline at the premises. As a result, this new revenue license includes collection of retroactive fees for the unlicensed period of December 8, 2020 through June 30, 2021. This new revenue license agreement with RBF also provides for a new five-year agreement, with three five-year options to extend the term of the license, for the period of July 1, 2021 through June 30, 2026 with the payment of annual use fees and District’s annual inspection fees during the new five-year term for RBF’s use of approximately 2,394 lineal feet of District land located on the west side of and running parallel to District’s Rialto Channel, south of Santa Ana Avenue in Rialto to operate and maintain an existing underground six-inch PVC water pipeline.
Staff has reviewed the recommended action pursuant to the California Environmental Quality Act (CEQA) and has determined that it does not constitute a project. Accordingly, no further action is required under CEQA.
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Summary of License Terms |
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Licensee: |
Rialto Bioenergy Facility, LLC (Yaniv Scherson, Managing Member) |
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Location: |
District land located on the west side of and running parallel to the Rialto Channel, south of Santa Ana Avenue in Rialto. |
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Size: |
Approximately 2,394 lineal feet of District land |
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Term: |
Five years commencing on July 1, 2021 and ending on June 30, 2026 |
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Options: |
Three five-year options to extend |
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Revenue: |
Annual: $7,972* |
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*High-range for comparable facilities in the Rialto area per the competitive set analysis on file with RESD; Licensee is also required to pay the annual District inspection fee. |
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Annual Increases: |
4% |
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Improvement Costs: |
None |
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Maintenance: |
Provided by Licensee |
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Utilities: |
Provided by Licensee |
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Insurance: |
The Certificate of Liability Insurance, as required by the license, is on file with RESD |
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Right to Terminate: |
Both the District and the Licensee have the right to terminate with 120-days’ prior written notice |
PROCUREMENT
Pursuant to California Government Code Section 25526.6, the Board of Supervisors (Board) may grant licenses for use of any District-owned property to a public benefit entity in the manner and upon the terms and conditions as the Board determines, upon a finding by the Board, that the license is in the public interest and that the license will not substantially conflict or interfere with the District’s use of the property.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Agnes Cheng, Deputy County Counsel and Sophie Akins, Deputy County Counsel, 387-5455) on June 1, 2021; Flood Control District (Grant Mann, Deputy Director, 387-8186) on June 1, 2021; Finance (Jessica Trillo, Administrative Analyst, 387-4222 and Carl Lofton, Administrative Analyst, 387-5404) on June 7, 2021; and County Finance and Administration (Matthew Erickson, County Chief Financial Officer, 387-5423) on June 7, 2021
(PN: 677-8321)