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).
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Date |
Revenue |
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*June 12, 2024 - December 31, 2026 |
$28,956 |
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January 1, 2027 - December 31, 2027 |
$9,696 |
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January 1, 2028 - December 31, 2028 |
$10,084 |
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January 1, 2029 - December 31, 2029 |
$10,488 |
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January 1, 2030 - December 31, 2030 |
$10,907 |
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January 1, 2031 - December 31, 2031 |
$11,343 |
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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.
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Summary of License Terms |
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Licensee: |
Rialto Bioenergy Solutions, LLC, a wholly owned subsidiary of Sevana Holdings, LLC |
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Location: |
503 East Santa Ana Avenue in Rialto (Assessor’s Parcel Number 0258-151-13-0000) running parallel to the Rialto Channel |
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Size: |
Approximately 2,394 lineal feet |
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Term: |
Five years from January 1, 2027 through December 31, 2031 |
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Options: |
Three five-year extension options |
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License Fee: |
Monthly: $808 |
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Annual: $9,696 *High-range for comparable facilities in the Rialto area per the competitive set analysis on file with RESD |
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Annual Inspection Fee |
Licensee shall pay the annual inspection fee established by FCD's applicable fee ordinance. |
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Security Deposit: |
$5,000, subject to adjustment in accordance with the License. |
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Annual Increases: |
4% annually |
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Improvement Costs: |
Licensee Responsibility |
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Custodial: |
None |
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Maintenance: |
Licensee responsibility |
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Utilities: |
Licensee responsibility |
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Insurance: |
The Certificate of Liability Insurance, as required by the License, is on file with RESD |
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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 |
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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 |
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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)