Legislation Details

File #: 15161   
Type: Consent Status: Agenda Ready
File created: 11/4/2026 Department: San Bernardino County Flood Control District
On agenda: 11/17/2026 Final action:
Subject: Revenue License Agreement with Rialto Bioenergy Solutions, LLC, a wholly owned subsidiary of Sevana Holdings, LLC, for the Non-Exclusive Use of Flood Control District Land in Rialto
Attachments: 1. ADD-COV-FCD-RESD-1111726-Revenue License w Rialto Bioenergy Solutions LLC.pdf, 2. ADD-CON-FCD-RESD-111726- Revenue License w Rialto Bioenergy Solutions LLC.pdf
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REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS

OF SAN BERNARDINO COUNTY FLOOD CONTROL DISTRICT

AND RECORD OF ACTION

 

November 17, 2026

 

FROM

NOEL CASTILLO, Chief Flood Control Engineer, Flood Control District

TERRY W. THOMPSON, Director, Real Estate Services Department

         

SUBJECT                      

Title                     

Revenue License Agreement with Rialto Bioenergy Solutions, LLC, a wholly owned subsidiary of Sevana Holdings, LLC, for the Non-Exclusive Use of Flood Control District Land in Rialto

End

 

RECOMMENDATION(S)

Recommendation

Acting as the governing body of the San Bernardino County Flood Control District:

1.                     Find that approval of the Revenue License Agreement with Rialto Bioenergy Solutions, LLC, a wholly owned subsidiary of Sevana Holdings, LLC, for the continued non-exclusive use of Flood Control District land, is categorically exempt from the California Environmental Quality Act Guidelines, Sections 15301 - Existing Facilities (Class 1) and 15304 - Minor Alterations to Land (Class 4).

2.                     Find that, pursuant to California Government Code section 25526.6, a five-year license agreement, with three five-year options to extend the term of the license, with Rialto Bioenergy Solutions, LLC, a wholly owned subsidiary of Sevana Holdings, LLC, commencing on January 1, 2027, and ending on December 31, 2031, for the continued non-exclusive use of approximately 2,394 lineal feet of Flood Control District land along the Rialto Channel at 503 East Santa Ana Avenue in Rialto (Assessor’s Parcel Number 0258-151-13-0000), is in the public interest and that the license agreement will not substantially conflict or interfere with the San Bernardino County Flood Control District’s use of the property.

3.                     Approve Revenue License Agreement with Rialto Bioenergy Solutions, LLC, a wholly owned subsidiary of Sevana Holdings, LLC, for the continued non-exclusive use of approximately 2,394 lineal feet of San Bernardino County Flood Control District land along the Rialto Channel at 503 E Santa Ana Ave in Rialto (Assessor’s Parcel Number 0258-151-13-0000), with the following terms:

a.                     A five-year term from January 1, 2027 through December 31, 2031, with three five-year options to extend.

b.                     License fees totaling $52,518 during the initial five-year term.

c.                     A separate, one-time payment of $28,956 for prior license and holdover fees through December 31, 2026, consisting of $21,961 in license and inspection fees and $6,995 in holdover fees.

d.                     The total amount associated with the Revenue License Agreement, including the initial-term license fees and the retroactive payment, is $81,474.

4.                     Approve the termination of License Agreement No. 21-523, including any continued month-to-month use under that agreement, effective December 31, 2026.

5.                     Direct the Real Estate Services Department to file the Notice of Exemption in accordance with the California Environmental Quality Act.

(Presenter: Terry W. Thompson, Director, 387-5000)

Body

 

COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES

Promote and Fulfill the Countywide Vision.

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).  Total revenue associated with approval of the Revenue License Agreement (License) with Rialto Bioenergy Solutions, LLC (Bioenergy) is $81,474, consisting of $52,518 in license fees during the five-year term and $28,956 in retroactive license, inspection, and holdover fees attributable to periods through December 31, 2026.  This amount excludes future annual inspection fees, which will be assessed in accordance with the San Bernardino County Flood Control District's (FCD) applicable fee ordinance, and the $5,000 refundable security deposit required under the License.  Revenue received will be deposited in FCD Zone 2 fund (1920002522).

 

Date

Revenue

*June 12, 2024 - December 31, 2026

$28,956

January 1, 2027 - December 31, 2027

$9,696

January 1, 2028 - December 31, 2028

$10,084

January 1, 2029 - December 31, 2029

$10,488

January 1, 2030 - December 31, 2030

$10,907

January 1, 2031 - December 31, 2031

$11,343

Total

$81,474

                                                               *Permitted holdover period

 

BACKGROUND INFORMATION

On June 22, 2021 (Item No. 118), the Board of Supervisors (Board) approved Revenue License Agreement No. 21-523 (Prior License) with Rialto Bioenergy Facility, LLC (RBF) for an initial five-year term, from July 1, 2021 through June 30, 2026, with three five-year options to extend, for non-exclusive use of FCD land located at 503 East Santa Ana Avenue in Rialto (Assessor’s Parcel Number 0258-151-13-0000), running parallel to the Rialto Channel (Premises), to operate and maintain an existing underground six-inch PVC water pipeline for an organics recycling discharge line to facilitate community reclaimed water uses.

 

RBF, the predecessor licensee, filed for Chapter 11 bankruptcy.  On June 12, 2024, RBF closed the sale of substantially all of its assets to Bioenergy, following the assignment by Sevana Holdings, LLC of its rights under the asset purchase agreement and bill of sale to Bioenergy. Following the acquisition, Bioenergy continued use of the Premises.  Due to RBF’s bankruptcy, rents totaling $9,859 for the period of July 1, 2023 through June 11, 2024, were determined to be uncollectible.  Bioenergy has agreed to pay $28,956 for its use of the Premises from June 12, 2024 through December 31, 2026, consisting of $21,961 in license and inspection fees and $6,995 in holdover fees.

 

Bioenergy agreed to the new License for a term of January 1, 2027 through December 31, 2031, including three five-year extension options.  The License permits the FCD to terminate upon 365 days’ written notice, subject to the limitations in Paragraph 21, and the Licensee to terminate upon 120 days’ written notice.  All other terms have standard language provisions.

 

The project to approve the License was reviewed pursuant to the California Environmental Quality Act (CEQA) and determined to be categorically exempt under Section 15301 - Existing Facilities and Section 15304 - Minor Alterations to Land (Class 1) because the License provides for the continued operation and maintenance of an existing underground pipeline and related improvements, with negligible or no expansion of the existing use.  Accordingly, no further action is required under CEQA.

 

Summary of License Terms

 

Licensee: 

Rialto Bioenergy Solutions, LLC, a wholly owned subsidiary of Sevana Holdings, LLC

 

 

Location:

503 East Santa Ana Avenue in Rialto (Assessor’s Parcel Number 0258-151-13-0000) running parallel to the Rialto Channel 

 

 

Size:

Approximately 2,394 lineal feet

 

 

Term:

Five years from January 1, 2027 through December 31, 2031

 

 

Options:

Three five-year extension options

 

 

License Fee:

Monthly: $808

 

Annual: $9,696 *High-range for comparable facilities in the Rialto area per the competitive set analysis on file with RESD

 

 

Annual Inspection Fee

Licensee shall pay the annual inspection fee established by FCD's applicable fee ordinance.

 

 

Security Deposit:

$5,000, subject to adjustment in accordance with the License.

 

 

Annual Increases:

4% annually

 

 

Improvement Costs:

Licensee Responsibility

 

 

Custodial:

None

 

 

Maintenance:

Licensee responsibility

 

 

Utilities:

Licensee responsibility

 

 

Insurance:

The Certificate of Liability Insurance, as required by the License, is on file with RESD

 

 

Holdover:

Upon the expiration of the term, if permitted by Licensor, the License shall continue on a month-to-month term upon the same terms and conditions which existed at the time of expiration

 

 

Right to Terminate:

FCD may terminate upon 365 days’ written notice, subject to the limitations in Paragraph 21 of the License; Licensee may terminate upon 120 days’ written notice

 

 

Parking:

None

 

PROCUREMENT

Pursuant to California Government Code section 25526.6, the 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 (John Tubbs II, Deputy County Counsel, 387-5455) on November 9, 2026; Flood Control District (Noel Castillo, Chief Flood Control Engineer, 387-7906) on October 15, 2026; Purchasing (Ariel Gill, Supervising Buyer, 387-2070) on October 15, 2026; and County Finance and Administration (Scott Bruckner, 387-4020, and Eduardo Mora, 387-4376, Administrative Analysts) on October 29, 2026.

 

(CM: 840-266-0977)