City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: OCTOBER 20, 2026 FROM: PUBLIC UTILITIES DEPARTMENT WARDS: ALL
SUBJECT: APPROVE ASSIGNMENT AND ASSUMPTION AGREEMENTS FOR REQUEST FOR PROPOSALS WITH RESOURCE INNOVATIONS, INC., FORMERLY RICHARD HEATH & ASSOCIATES, INC., OF FRESNO, CALIFORNIA FOR REQUEST FOR PROPOSAL NO. 2137 FOR THE OUTDOOR LIGHTING PROGRAM IN THE AMOUNT OF $5,000,000 FOR A TERM FROM JANUARY 13, 2023, TO JANUARY 13, 2027; AND REQUEST FOR PROPOSAL NO. 2139 FOR THE SMALL BUSINESS DIRECT INSTALLATION PROGRAM IN THE AMOUNT OF $5,000,000 FOR A TERM FROM JANUARY 23, 2023, TO JANUARY 23, 2027 ISSUES:
Approve the Assignment and Assumption Agreements with Resource Innovations, Inc., formerly Richard Heath and Associates, Inc., of Fresno, California for Request for Proposal No. 2137 for the Outdoor Lighting Program in the amount of $5,000,000 for a term from January 13, 2023, to January 13, 2027, and Request for Proposal No. 2139 for the Small Business Direct Installation Program in the amount of $5,000,000 for a term from January 23, 2023, to January 23, 2027 RECOMMENDATIONS:
That the City Council:
Approve the Assignment and Assumption Agreement for Request for Proposal No. 2137 for the Outdoor Lighting Program to Resource Innovations, Inc., formerly Richard Heath & Associates, Inc., in the amount of $5,000,000 for a term effective January 13, 2023, to January 13, 2027; Approve the Assignment and Assumption Agreement for Request for Proposal No. 2139 for the Small Business Direct Installation Program to Resource Innovations, Inc., formerly Richard Heath & Associates, Inc., in the amount of $5,000,000 for a term effective January 23, 2023, to January 23, 2027; and Authorize the City Manager, or designee, to execute the Assignment and Assumption Agreements with Resource Innovations, Inc., including making minor and non-substantive changes.
BOARD RECOMMENDATION:
On September 28, 2026, the Board of Public Utilities with all board members present, voted unanimously to recommend that the City Council approve the Assignment and Assumption Agreements with Resource Innovations, Inc., formerly Richard Heath and Associates, Inc., of Fresno, California for Request for Proposal No. 2137 for the Outdoor Lighting Program in the amount of $5,000,000 for a term from January 13, 2023, to January 13, 2027, and Request for Proposal No. 2139 for the Small Business Direct Installation Program in the amount of $5,000,000 for a term from January 23, 2023, to January 23, 2027.
LEGISLATIVE HISTORY:
Assembly Bill (AB) 1890 (Brulte, 1996) required that 2.85% of electric revenue be utilized to fund public benefits programming in at least one of four areas: demand side management (energy efficiency), renewable energy, low-income assistance, or research, development, and demonstration.
Senate Bill (SB) 1037 (Kehoe, 2005) was a comprehensive package that set ambitious energy conservation policies and goals. SB 1037 required publicly owned utilities (POU’s) when procuring energy to serve their customer load, to “first acquire all available energy efficiency and demand reduction resources that are cost effective, reliable, and feasible” and to report kilowatt hour (kWh) savings to the California Energy Commission annually. This Senate bill also requires POU’s to demand reduction programs.
AB 2021 (Levine, 2006) required POU’s to identify, target and achieve all potentially cost-effective electric savings and establish 10-year energy efficiency targets.
SB 350 (De Leon, 2015) establishes annual targets for statewide energy efficiency savings and demand reduction that will achieve a cumulative doubling of statewide energy efficiency savings in electricity and natural gas by January 1, 2030. The bill required local POU’s to establish annual targets for energy efficiency savings and demand reduction consistent with this goal.
BACKGROUND:
In 2023, Riverside Public Utilities (RPU) sought proposals from contractors to provide two commercial direct install programs: the commercial Outdoor Lighting Program and the Small Business Direct Installation Program. Both of these programs have provided cost effective energy savings to RPU’s business customers.
On January 10, 2023, the City Council approved two Professional Consultant Services Agreements with Richard Heath and Associates, Inc. (RHA, Inc.). Request for Proposal No. 2137 established the commercial Outdoor Lighting Program and the second Request for Proposal No. 2139 established the Small Business Direct Installation Program.
Outdoor Lighting Program
On November 19, 2024, City Council approved a First Amendment to Professional Consultant Services Agreement with RHA, Inc. for the Outdoor Lighting Program, to increase program funds by an additional $1,250,000.
On March 3, 2026, City Council approved a Third Amendment to Professional Consultant Services Agreement with RHA, Inc. to increase the Outdoor Lighting program funding for a total contract amount of $5,000,000.
Small Business Direct Install Program
On November 28, 2023, City Council approved a First Amendment to Professional Consultant Services Agreement with RHA, Inc. for the Small Business Direct Install Program, to increase program funds by an additional $2,500,000.
DISCUSSION:
On January 26, 2026, Richard Heath & Associates, Inc. advised staff that the business had been acquired by Resource Innovations, Inc., and as part of the acquisition, RHA Inc. intended to assign existing agreements to Resource Innovations, Inc. So that both agreements are properly executed with Resource Innovations, Inc., Assignment and Assumption Agreements have been created to allow the programs to continue under the new company. Once formalized, Resource Innovations Inc. will assume responsibility for the performance of RHA Inc.’s obligations as established under the original agreements, where all terms and conditions remain in effect.
The Purchasing Manager concurs that the recommended actions comply with Purchasing Resolution No. 24421.
FISCAL IMPACT:
There is no fiscal impact associated with this report, as it pertains to the assumption of the agreements with Richard Heath Associates, Inc., by Resource Innovations, Inc.
Prepared by: Tracy Sato, Utilities Assistant General Manager/Strategic Innovations Approved by: David A. Garcia, Utilities General Manager Certified as to
availability of funds: Julie Nemes, Finance Director Approved by: Gilbert Hernandez, Assistant City Manager Approved as to form: James Johnson, City Attorney
Attachments:
Assignment and Assumption Agreement RFP No. 2137
Assignment and Assumption Agreement RFP No. 2139
Presentation
Assignment and Assumption Agreement with Resource Innovations, Inc.