1 CITY OF RIALTO
REGULAR MEETING OF THE WATER SUBCOMMITTEE
July 26, 2023 - 10:00 A.M.
MINUTES
The Regular meeting of the Water Subcommittee of the City of Rialto was held in the Civic Center Council Chambers located at 150 S. Palm Avenue, Rialto, California 92376, on Wednesday, July 26, 2023.
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CALL TO ORDER Call to order at 10:01 A.M.
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ROLL CALL The roll call was taken by Senior Executive Analyst, Nicole Hemmans.
Subcommittee Members / City Staff/Interns:
Mayor Deborah Robertson
Council Member Ed Scott
Arron Brown, Acting City Manager
Robert Messinger, Assistant City Attorney
Tom Crowley, Utilities Manager
Toyasha Sebbag, Assistant to the CM
Nicole Hemmans, Senior Administration Analyst
Katherine Stevens, Director of Finance
Genesis Ibrahim-Balogun, Intern to the Mayor
Other Attendees
Steve Dopudja, DWC Consultant
Ray Hussey, Enplanners CEQA Consultant
Noah Ridlon, Enplanners CEQA Consultant
Peter Lucetti, RWS/Table Rock
Rolf Ohlemutz, Rialto Water Services
Art Griffith, FG Solutions
Dr. June Hayes, Public
Even Kominsky, Ullico
Zoom Attendees
Debbi Fortin, FG Solutions
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PUBLIC COMMENTS None.
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APPROVAL OF MINUTES-
Regular Meeting of June 28, 2023
June 28, 2023 - Minutes Approved.
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NEW BUSINESS ITEMS
WS-23-686 – CEQA Update on the
“Rialto Habitat Nature Center”
(formally named “Lake Rialto”)
Enplanners consultants, Ray Hussey and Noah Ridlon presented a PowerPoint Update on CEQA Study for the Rialto Habitat Nature Center (RHNC).
Questions & Comments
♦ Councilmember Ed Scott inquired if the Nesting Bir ds Survey Mitigation will include the “Burrowing Owls”?
o Per Noah, Based on the analysis there is no habitat for the burrowing owl identified on-site. If identified, the contractor or developer will need to protect the species.
♦ Resident, Dr. June Hayes, asked if the Santa Ana Sucker fish are impacted by the RHNC project?
o Per Noah, the Santa Ana Sucker fish are not impacted by this project. The Santa Ana Suckers are in a location downstream from the RHNC. The RHNC project is creating a lake that will maintain the existing flows that already go into the stream to project the Santa Ana Suckers.
♦ Dr. Hays asked if there were any Kangaroo Rats (k-rats) impacted? o Per Noah, no, k-rats are not impacted by this project.
♦ Mayor Robertson asked to preview the list of agencies that are receiving the CEQA Plus IS/MND for public review to make sure we are requesting review from more agencies than just the standard group.
♦ Councilmember Scott expressed his concern with the picture with the birds. Do we know what kind of birds RHNC will attract? o Stephen Dopudja will provide this information.
♦ Councilmember Scott asked if there is a wildfire, does the fire agency have the right to extract the water out of the habitat? o Per Noah, if water is available it is his assumption that they would use it in the event of an emergency.
o Mayor Robertson reminded everyone that Senator Norma
Torres liked the idea of the RHNC (formerly Lake Rialt o) because of the body of water available to be extracted for the foothills area in the event of a fire.
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WS-23-687 – Revenue Analysis –
present additional scenarios of
Phase 1.
Toyasha Sebbag , along with FG Solutions Consultant, Art Griffith , provided a PowerPoint presenting additional scenarios of Phase 1 – Revenue Analysis.
Questions & Comments
♦ Stephen Dopudja asked Art at what year did he apply the IEUA water sales revenue in the scenarios being presented?
o Per Art, h is scenarios ha s revenue from IEUA starting in FY25/26.
o Dopudja recommended Art modify the sc enario to show
revenue starting in FY26/27. The Chino Basin program is set to be online in FY27/28 , and will start receiving water in FY26/27.
o Dopudja also mentioned, per the terms and conditions for the sales of recycled water from the City of Rialto to IEUA , the City will soon be receiving a small portion of revenue as a reservation/deposit fee.
o Councilmember Scott asked where will the IEUA revenue go when it was received?
o Tom confirmed that the revenue is considered a pre-
payment, and will be applied to the wastewater fund when revenue is received.
o Nicole Hemmans confirmed the invoice to IEUA is for the amount of $128,333 for fiscal year 22/23, prorated for the period of November 2022 thru June 2023.
o Dr. Hayes shared in the meeting that the City of Rialto also received a check from San Bernardino Valley M unicipal
Water District for the Demand Management I ncentive water savings program for saving water in 2022.
♦ Councilmember Scott asked can the Wastewater fund loan money to the Water fund?
o Per Art, the wastewater fund already has loaned money to the water fund. There is a current inter fund loan from the wastewater to water.
o Councilmember Scott asked how much is the loan and when was it created?
o Per Art, the loan is for $ 3M, does not have a repayment schedule, and was created a long time ago.
o Toyasha will confirm the amount and date of the loan.
♦ Mayor Robertson asked if the $25M repayment to Wastewater was invested in an interest-bearing account, what could be generate that would add additional revenue?
4 o Mayor Robertson requested a follow-up response.
♦ Dr. June Hayes expressed her concern regarding the loan payment to the Water fund from the Waste fund because loan documentation was not tracked very well when that transaction transpired. o Arron Brown confirmed that everything the City does is properly tracked and the days of not tracking properly is long gone.
♦ Katherine Stevens, Director of Finance, confirmed that the RUA’s first payment in the lease payment structure was made in May 1, 2001. o Peter Luchetti, with RWS/Table Rock , confirmed this information and advised that he has documentation that
can be provided to anyone who requests it.
♦ Tom Crowley, Utilities Manager, provided an update to his meeting with the San Bernardino County (SBC) in reference to the County installing sewer lines in the City of Rialto for the City to maintain. The County is aware that although the City of Rialto supports the new sewer lines, this issue resides with the maintenance of non- connected sewer lines. SBC has decided to use the funds towards other projects in their organization.
o Mayor Robertson would like the discussion between the City and San Bernardino County memorialized and
requested that a Letter of Understanding be sent to San Bernardino County, acknowledging the shared position
of both parties in not proceeding with the proposed
project.
♦ Art Griffith advised the Water Subcommittee that the Microgri d project will incur additional expenses for debt services and Operations & Main tenance. However, there will also be savings on electricity. Griffith inquired of the mayor and Council member Scott’s direction on whether he should include the microgrid in his study from a rates perspective.
o Councilmember Scott replied to Griffith, stating, “We will not proceed without verifying the information provided”.
He then turned to the Staff and inquired, “Where are we with the verifications?”.
o Tom Crowley advised that another proposal was
received from Terra Verde. A meeting will be scheduled with Councilmember Scott to discuss moving along with
the process. This will be a two-month process.
o Councilmember Scott asked, “Where are we with the
issue on the batteries?”
o Tom Crowley replied, “ When we initiated the FCWA in
February, the intention was to place a deposit on the
batteries. To continue with the batteries and switch gear equipment, additional deposits are required. While RWS
is requesting more funds to expedite the process, this all 5 hinges on whether we pursue the microgrid project. This is being moved along today to insure we retain the $1.5 million SIGP grant. The available $1.5 million stems from advancing the battery and switchgear components.”
o Councilmember Scott asked what is the total cost of the batteries?
o Peter Luchetti stated the total cost stands at $5,152,000.
Of that, the approved cost to spend is $1,333,000. Peter clarified for everyone’s understanding that authorization was only authorized on expenditures that were crucial to buy time for the review to be completed to the City’s
satisfaction. Peter went on the state that time has
elapsed, and the review remains incomplete, w ith an
anticipation completion of several months from now.
Given the current situation, if the City wishes to secure procurement, an add itional $3.8M is now due. The
added delay has increased the financial commitment. If
we don’t allocate the $3.8M we risk losing the
procurement, our agreed price, and position in the
queue. Moreover, if this isn’t resolved by the 3rd week of September, we’ll likely forfeit the Self-Generate
Incentive Program (SGIP) grant.
o Councilmember Scott asked if the $5 .2M include the
SGIP grant.
o Per Tom Crowley, it does not include the SGIP grant.
o Stephen D opudja asked Luchetti if Terra Verde’s
question was answered pertaining to how many
extensions have been exhausted on the SGIP grant?
o Per Luchetti, 2 of 4 extensions have been requested and granted. He also stated that he doesn’t want everyone
to lose sight of the unverified potent ial monthly savings on the wastewater bill, which would result in funding the entire capital program for wastewater with some
additional savings.
o Crowley requested Peter to initiate another extension on the SGIP grant.
o Both Mayor and Councilmember Scott asked how would
an extension effect the pricing?
o Per Crowley, the $3.8M would go up in value.
o Councilmember Scott asked will the consultant, Terra
Verde, be able to keep to the target schedule and what
is needed to proceed?
o Per Crowley, yes, The Consultants seems to be
approaching its target. To move f orward, a Notice to
Proceed will be required from the Assistant City
Manager who has the authority to execute.
6 ♦ Councilmember Scott stated that it is obvious we are going to need a rate increase on water now to put in place by January 1st..
♦ Mayor suggested packaging it and presenting it for review.
♦ Toyasha Sebbag requested direction on if we should consider initiating a CIP Reserve fund to account for depreciation. o Councilmember Scott provided his consent to proceed.
o Mayor Robertson requests more information and
discussion on this item , as it is important to be more informative to our residents.
♦ Toyasha requested authorization to move forward with th e request of Phase 2 at the August 22nd City Council meeting.
♦ Councilmember Scott granted authorization to move forward with her request.
♦ Mayor Robertson and Councilmember Scott both suggested more outreach to the community.
♦ Peter Luchetti advised that city staff a re contacting iBank without legal representation involved.
o Councilmember Scott asked staff who has been in
conversation with iBank?
o Toyasha Sebbag advised that she has been in
contact with iBank regarding the State Revolving
Fund.
o Councilmember Scott asked Toyasha if she is
documenting her discussions and who is included
on those discussions and emails?
o Toyasha stated she documents her discussions and
includes only herself and anyone else whom she
may have forwarded to email to.
o Tom Crowley stated he is included on some of her
emails as well as Peter Luchetti.
o Councilmember Scott instructed Sebbag to include
Tom Crowley, Arron Brown, Tanya Williams , and
legal representation on all communications with
iBank.
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♦ Toyasha Sebbag confirmed the due date of January 2024 for the WIFIA loan.
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7 UTILITIES MANAGER’S UPDATES
WS-23-688 – Utilities Manager Update
Utilities Manager update by Tom Crowley.
Discussion items:
a) Conservation Projects/Rebates
Questions & Comments:
Conservation project:
♦ Toyasha Sebbag provided an update on the WaterSmart project representing a collaborative effort between city staff from multiple departments and City interns: Mike Orona, Vincente Giron, Siri Champion, Cynthia Alvarado, Owen Knapper,
Micaiah Harris, and Genesis Ibrahim-Balogun
Rebates:
♦ Staff was ins tructed to refrain from proceedin g with the Turf Replacement project on Riverside Ave in the Las Colinas are a, replacing landscape turf with decomposed granite.
♦ Councilmember Scott suggested staff to consider how the residents of the area may feel about decomposed granite landscape.
♦ Councilmember Scott inquired whether the funds are exclusively designated for commercial use & City parks, or can it be used towards residential?
o Toyasha advised that the funds could be used towards residential.
o Councilmember Scott commented that he would much
rather see us utilize funds towards assisting residents with turf replacement projects like the resident on Lilac between Merrill and Orchard.
♦ Mayor Robinson recommended we utilize the funds showing residents what they can do by creating a demonstration on the city campus of what they can do.
♦ Councilmember Scott inquired whether we are being required to do the turf replacement?
o Per Tom Crowley , this project is not a requirement , but instead a funding opportunity.
♦ Mayor Robinson inquired on who is responsible for updating our Landscape & Design ordinance?
o Arron Brown advised staff would find out this information.
8 ♦ Mayor Robinson recommended when staff is providing an update on events to please acknowledge the names of all who
participated in collaborating on the efforts.
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b) Orangewood Mobile Home Park Agreement
Questions & Comments:
♦ Councilmember Scott provided the direction to finalize the agreement and present it to City Council
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UPCOMING MEETINGS/OTHER
DISCUSSION ITEMS None.
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ADJOURNMENT
Meeting adjourned at 12:24 p.m.
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