6 (D) If the Board is not able to maintain a quorum after the scheduling of two consecutive meetings to perform the duties set forth in this chapter, the duties shall be performed by the Planning and Housing Commission established pursuant to Chapter 2.37.
2.38.050 Stipend.
Each member of the Board shall receive $50 for each regular meeting attended, not to exceed $100 per month.
2.38.060 Duties.
The Board shall have the following powers and duties:
(A) To perform the duties and functions prescribed by Chapter 17.63. (B) To perform any other powers and duties prescribed by the City Council that are not inconsistent with any state or local law.
7 EXHIBIT “B”
CHAPTER 17.63
HISTORIC RESOURCES
Sections:
17.63.010 Purpose.
17.63.020 Definitions.
17.63.030 Applicability.
17.63.040 Corona Register – Establishment.
17.63.050 Corona Register – Landmark listing criteria.
17.63.060 Corona Register – Historic district listing criteria.
17.63.065 Corona Register – Structure of merit listing criteria.
17.63.070 Corona Register – Historic marker listing criteria.
17.63.080 Corona Heritage Inventory.
17.63.090 Corona Heritage Inventory – Heritage property listing criteria.
17.63.100 Listing or expanded listing – Application and procedures.
17.63.110 Deleted or reduced listing – Application and procedures.
17.63.120 Alteration, relocation or demolition of historic resources - Plan review and approval required.
17.63.130 Appeals.
17.63.140 Other duties of Historic Preservation Board.
17.63.150 Heritage Librarian.
17.63.160 Corona Historic Preservation Society.
17.63.170 Preservation incentives.
17.63.180 Historic property preservation agreements.
17.63.190 State Historic Building Code.
17.63.200 Unsafe or dangerous conditions.
17.63.210 Public projects and improvements.
17.63.220 Duty to maintain and repair historic resources.
17.63.230 Violations and enforcement.
17.63.010 Purpose.
It is the purpose of this chapter to promote the recognition, preservation and continued viability of historic resources in the City of Corona in the interest of prosperity, social and cultural enrichment and the general welfare of the people of Corona, through the following principles:
(A) Encouraging knowledge and civic pride in the character of Corona’s heritage and its many historic resources, in accordance with the declaration of intent and purpose in the city’s General Plan;
(B) Providing a process and register for the public identification and official recognition of Corona’s many historic resources;
(C) Establishing processes for the thoughtful review of plans for future projects and developments that could affect the management and preservation of Corona’s historic resources;
8 (D) Encouraging and assisting Corona’s private property owners with the management and preservation of their own historic resources and properties; (E) Promoting the management and preservation of Corona’s historic resources, including historic districts, that reflect the city’s diverse cultural, social, artistic, economic, engineering, political and architectural heritage;
(F) Enhancing Corona’s cultural heritage as a general attraction to residents, tourists, businesses, industries and development enterprises, thereby strengthening Corona’s general economy around its core heritage areas;
(G) Promoting the use of Corona’s historic resources and districts for the education, enjoyment and welfare of the people of the city.
17.63.020 Definitions.
Whenever the following words or terms are used in this chapter, they shall have the meaning established by this section.
(A) "Alteration" means any change or modification, through public or private action, of an historic resource, including, but not limited to: exterior changes to or modifications of an improvement or site or any of its architectural details or visual characteristics, including paint color and surface texture, grading, surface paving, new structures, renovation or rehabilitation of structures, additions to structures or the removal of mature trees or other natural features; disturbances of archaeological or paleontological sites or areas; the placement or removal of any improvements or natural features such as signs, plaques, light fixtures, street furniture, walls, fences, steps, plantings or landscape accessories that affect the historic qualities of the property. (B) "Archaeological or paleontological site" means an area containing the remains or evidence of prehistoric humans or prehistoric human activities or an area containing fossilized or preserved remains of plants or animals that generally predates the emergence of humans on the earth.
(C) “California Historical Landmarks” means buildings, structures, sites, or places that have been determined to have statewide historical significance by meeting at least one of the following criteria: 1) the first, last, only, or most significant of its type in the state or within a large geographic region (Northern, Central, or Southern California), 2) associated with an individual or group having a profound influence on the history of California, or 3) a prototype of, or an outstanding example of, a period, style, architectural movement or construction or is one of the more notable works or the best surviving work in a region of a pioneer architect, designer or master builder. (D) "California Register" means the California Register of Historic Resources as defined in Cal. Public Resources Code § 5020.1.
(E) "Contributing historic resource” means a site, improvement or natural feature within a designated historic district, which adds to the historic qualities of the area, has a special character or aesthetic interest or value and has been identified on the Corona Register for that reason.
9 Contributing historic resources include landmarks, heritage properties or historic resources listed on the California Register or National Register.
(F) "Corona Heritage Inventory" means the official listing of heritage properties and historic artifacts as adopted by the Historic Preservation Board pursuant to this chapter. (G) "Corona Register" means the official list of landmarks, historic districts and all contributing historic resources within historic districts, and historic artifacts as adopted by the City Council pursuant to this chapter, and shall be officially known as the Corona Register of Historic Resources.
(H) "Design guidelines" means the principles contained in a document approved by the city which describe and/or illustrate appropriate methods of rehabilitation, alteration or construction affecting historic resources. These guidelines are in addition to any other applicable design guidelines adopted by the city, whether by ordinance or by resolution, and the Secretary of the Interior’s Standards for Rehabilitation Projects.
(I) "Exterior architectural feature” means the architectural style, design, general arrangement, components and natural features and all the outer surfaces of an improvement, including, but not limited to, the type and texture of the building materials, the type and style of windows, doors, lights, signs, walls, fences and other fixtures appurtenant to the improvement. (J) “Historic Artifact” means monuments, murals, markers or other such artifact that are part of Corona’s heritage and listed on the Corona Register.
(K) "Heritage property" means a site, historic artifact, improvement or natural feature listed on the Corona Heritage Inventory in accordance with the listing criteria set forth in § 17.63.090. (L) "Historic District" means a defined geographic area and all contributing historic resources within the area, listed on the Corona Register in accordance with the listing criteria set forth in § 17.63.060.
(M) "Historic marker" means a sign, plaque, monument or other symbol, placed by either the City of Corona, the Corona Historic Preservation Society, Corona History Association, State office of Historic Preservation or National Park Service, for the purpose of recognizing one or more of the following:
(1) Events that have made a significant contribution to the history of Corona, the region, the state or the nation;
(2) Persons significant in Corona’s past;
(3) Examples of distinctive characteristics of a style, type, period or method of construction or a valuable example of the use of materials or craftsmanship; (4) Special elements of the city’s cultural, social, economic, political, aesthetic, engineering, architectural or natural history;
(5) The work of a notable builder, designer or architect; (6) Outstanding elements of architectural design, detail, materials or craftsmanship of a particular historic period;
10 (7) A unique location or physical characteristic representing an established and familiar visual feature of a neighborhood;
(8) An archeological or paleontological site; or
(9) A natural setting or feature that strongly contributes to the well being of the people of the city. The actual site, improvement or natural feature that is designated by the historic marker may or may not be listed, or may or may not be eligible for listing, on the Corona Register or the Corona Heritage Inventory.
(N) “Historic Preservation Board” means the Historic Preservation Board of the City of Corona established pursuant to Chapter 2.38
(O) "Historic resource" means any structure of merit, landmark, historic district or contributing historic resource listed on the Corona Register, any heritage property listed on the Corona Heritage Inventory or any site, improvement or natural feature listed on the California Register or the National Register.
(P) "Improvement" means any building, structure, structural work of art, parking facility, fence, gate, wall or other object constituting a physical betterment of real property or any part of such betterment.
(Q) "Landmark" means a site, improvement or natural feature listed on the Corona Register in accordance with the listing criteria set forth in § 17.63.050. (R) "Major alteration" means any alteration of an historic resource, which is not otherwise classified as a minor alteration.
(S) "Minor alteration" means the alteration of an historic resource that does not conflict with the integrity of the historic resource and does not involve the addition of square footage or modification of an existing improvement or site exceeding 30% of the improvement or site area.
Minor alterations include ordinary maintenance and repair, painting and re-roofing which are consistent with the architecture style and period of the historic resource. (T) "National Register" means the official federal list of historic resources as authorized by the National Historic Preservation Act of 1966, maintained by National Park Service under the United States Department of Interior and commonly known as the National Register of Historic Places.
(U) "Natural feature" means any physical or ecological characteristic of a site, including any landscaping, plant life, natural object or scenic condition. (V) "Ordinary maintenance" means any cleaning, painting and/or other restoration which does not result in the alteration of an improvement or landmark. (W) "Person" means any individual, association, partnership, firm, corporation, public agency or political subdivision.
(X) "Planning and Housing Commission" means the Planning and Housing Commission of the City of Corona established pursuant to Chapter 2.37. (Y) "Planning Director" means the Planning Director of the City of Corona.
11 (Z) "Secretary of the Interior’s Standards for Rehabilitation" means the Secretary of the Interior’s Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings by the U.S. Department of the Interior or the National Park Service. (AA) "Site" means any parcel or portion of real property, or any combination thereof, or any archaeological or paleontological site.
(BB) “Structure of Merit” means a heritage property that does not meet the listing criteria for a landmark but represents Corona's heritage by having historic, cultural or architectural value worthy of preservation and is listed on the Corona Register in accordance with the listing criteria set forth in § 17.63.065.
(CC) "Survey" means the individual documentation of a site, improvement or natural feature for potential listing on the Corona Register or the Corona Heritage Inventory in accordance with the historic documentation standards of the State of California.
17.63.030 Applicability.
This chapter shall apply to all historic resources listed on the Corona Register of Historic Resources, the Corona Heritage Inventory, the California Register and the National Register.
17.63.040 Corona Register – Establishment.
(A) The City Council shall establish the Corona Register of Historic Resources. The intent of this section is to provide a local register comparable with the California Register and National Register, with similar criteria, definitions and considerations. (B) The Corona Register shall include structures of merit, historic artifacts, landmarks, historic markers and historic districts, and the contributing historic resources within such historic districts, as listed by the City Council in accordance with this chapter. Sites, improvements and natural features within the city’s boundaries that are listed on the California Register, the National Register or the California Historical Landmarks shall automatically be deemed listed on the Corona Register.
(C) Historic resources listed on the Corona Register shall be eligible to apply for financial and other incentives established by the City Council that promote historic resource management and preservation in the city.
17.63.050 Corona Register – Landmark listing criteria.
(A) Landmarks are those physical elements of Corona’s historical development that exhibit exceptional historical, archeological, cultural, architectural, or artistic heritage that provide the community with its own unique civic identity and character. A site, improvement or natural feature shall be eligible for listing on the Corona Register as a landmark if the City Council finds that all of the following criteria are satisfied:
12 (1) It has been in existence prior to 1950, or if in existence after 1950 is of exceptional historical importance to the community;
(2) It has significant historic, cultural or architectural value and its designation as a landmark is reasonable, appropriate and necessary to promote, preserve and further the purposes and intent of this chapter;
(3) It exhibits one or more of the following characteristics:
(a) It is associated with events that have made a significant contribution to the history of Corona, the region, the state or the nation;
(b) It is associated with the lives of persons significant in Corona’s past; (c) It embodies distinctive characteristics of a style, type, period or method of construction or a valuable example of the use of materials or craftsmanship; (d) It exemplifies or reflects special elements of the city’s cultural, social, economic, political, aesthetic, engineering, architectural or natural history; (e) It is representative of the work of a notable builder, designer or architect; (f) It exemplifies one of the best remaining architectural styles or types in a neighborhood or contains outstanding elements of architectural design, detail, materials or craftsmanship of a particular historic period;
(g) It is in a unique location or contains physical characteristics representing an established and familiar visual feature of a neighborhood;
(h) It is a potential source of archeological or paleontological interest; (i) It is or contains a natural setting or feature that strongly contributes to the well being of the people of the city;
(4) It has integrity of location, design, setting, materials, workmanship, feeling and association;
(a) Integrity is the authenticity of an historic resource’s physical identity, as evidenced by the survival of characteristics that existed during the historic resource’s period of significance, to be recognizable and to convey the reasons for its significance; (b) A site, improvement or natural feature that has diminished historic character or appearance may still have sufficient integrity for the Corona Register if it retains the potential to yield significant scientific or historical information or specific data or retains sufficient character to convey the reasons for its significance. Thus, it is possible that a site, improvement or natural feature may not retain sufficient integrity to meet the criteria for listing on the California Register or National Register, but it may still be eligible for listing on the Corona Register; (c) Integrity shall be judged with reference to the particular criterion or criteria which provide its eligibility. An improvement removed from its original location shall be eligible if it is significant primarily for its architectural value or it is the surviving structure most importantly associated with an historic person or event.
13 (B) A reconstructed improvement shall be eligible if the reconstruction is historically accurate, the improvement is presented in a dignified manner as part of a restoration master plan and no other original improvement survives that has the same association. (C) A site, improvement or natural feature that is intended to be primarily commemorative shall be eligible if its design, age, tradition or symbolic value creates its own historic significance.
Examples include, but are not limited to, public statuary, murals, monuments, sculptures, graves and birthplaces. These sites or improvements may be identified by the placement of an historic marker.
17.63.060 Corona Register – Historic district listing criteria. (A) An historic district is a geographically defined area possessing a concentration of contributing historic resources that relate to each other and are unified by physical development or historical context.
(B) A defined area shall be eligible for listing on the Corona Register as an historic district if the City Council finds that all the following criteria are satisfied:
(1) The defined area is a unified geographical area with precisely defined boundaries; (2) The defined area contains a significant concentration of individually recognized contributing historic resources united in character by an historic plan, physical development, cultural heritage, past events, an historic period or prehistory era, aesthetics design or architectural traditions;
(3) At least 75% of the contributing historic resources in the defined area are 50 years of age or older and retain their original architectural character; (4) The civic and historic value of the contributing historic resources is greater as a collective whole than as individual historic resources;
(5) The defined area has significant historic, cultural or architectural value and its designation as an historic district promotes, preserves and furthers the purposes and intent of this chapter. (C) Upon the listing of an historic district on the Corona Register, all identified contributing historic resources in the historic district shall be individually listed on the Corona Register, along with notation of the historic district’s noncontributing resources.
17.63.065 Corona Register – Structures of merit listing criteria. (A) A structure of merit is a heritage property that does not meet the criteria identified for a landmark but includes physical elements that contribute to Corona’s heritage and are worthy of preservation.
(B) Heritage properties shall be eligible for listing on the Corona Register as a structure of merit if the City Council finds that one or more of the following criteria are satisfied:
14 (1) It is an example of a type of building or structure that was once common in Corona’s heritage but is now rare with most of the identifying features of the building or structure from the era preserved.
(2) It is connected with a business or use that was once common in Corona’s heritage but is now rare.
(3) It is a cultural resource that does not meet all the criteria for a landmark listing yet retains sufficient integrity to satisfy one or more criteria of a landmark listed in §17.63.050. (4) It yields information or is likely to yield information important to Corona’s history or prehistory.
17.63.070 Corona Register – Historic marker listing criteria.
An historic marker, as defined by this chapter, may be listed on the Corona Register by resolution of the City Council.
17.63.080 Corona Heritage Inventory.
The Corona Heritage Inventory shall include only heritage properties listed in accordance with this chapter and approved by the Historic Preservation Board..
17.63.090 Corona Heritage Inventory – Heritage property listing criteria.
A site, historic artifact, improvement or natural feature shall be eligible for listing on the Corona Heritage Inventory as a heritage property if the Historic Preservation Board finds that all the following criteria are satisfied:
(A) An official survey describing the features, merits and quality of the site, historic artifact, improvement or natural feature has been prepared;
(B) The site, historic artifact, improvement or natural feature is identified as a potential resource to be conserved because of its age, and either its context in the neighborhood, its association with an historic event or period or its significance to the architectural, engineering, scientific, economic, agricultural, educational, cultural, social, artistic, political or military history of Corona.
17.63.100 Listing or expanded listing – Application and procedures. (A) General. An application to list or to expand the listing of a structure of merit, landmark, historic district or heritage property may be initiated by the City Council, the Historic Preservation Board, city officials, local entities or a member of the public. An application "to expand the listing" is a request to enlarge, add to or otherwise augment the size, scale, scope, boundaries, characteristics, protections or definitions applicable to an existing structure of merit, landmark, historic district or heritage property.
15 (B) Contents. Applications shall be submitted to the Planning Department on forms prescribed by the Planning Director. The application shall include, but is not limited to, the following:
(1) The location or address of the proposed or expanded structure of merit, landmark, historic district or heritage property;
(2) The Assessor’s parcel number(s) of all properties on which the structure of merit, landmark, or heritage property is located, or if application is for an historic district, then the Assessor’s parcel number for all property within the boundaries of the proposed or expanded historic district;
(3) If the application is for a structure of merit, landmark, or historic district, then a legal description of all properties for which an Assessor’s parcel number is required; (4) The name and address of the owner(s) of all property for which an Assessor’s parcel number is required, as shown on the latest assessment roll; (5) A full description of the proposed or expanded structure of merit, landmark, historic district or heritage property;
(6) Any other information deemed necessary by the Planning Director. (C) Additional information. Applications shall identify in sufficient detail how the proposed or expanded historic resource meets the applicable eligibility criteria set forth in this chapter:
§ 17.63.050 for landmarks, § 17.63.060 for historic districts, § 17.63.065 for structure of merit or § 17.63.080 for heritage properties. The application shall also be accompanied by an official survey describing the features, merits and quality of the proposed or expanded historic resource. (D) Property owner consent required.
(1) If the application is for a landmark or structure of merit, then written and signed consent shall be obtained from all owner(s) of property on which the proposed or expanded landmark is located, as shown on the latest assessment roll;
(2) If the application is for an historic district, then any written protest received must constitute less than 49% of the owner(s) of property located within the boundaries of the proposed or expanded historic district, as shown on the latest assessment roll. For purposes of determining a majority protest, each property is allocated one representative to register either consent or nonconsent to the inclusion of their property within the proposed or expanded historic district.
Multiple owners of a property are collectively entitled one representative. Multiple adjacent parcels under common ownership are considered one property. (3) The applicant is responsible for all costs associated with the notification to the respective property owners of the opportunity to register their concurrence or protest of the proposed district. (E) Completed application. The Planning Director, or his or her designee, shall determine if an application is complete or incomplete within 30 days of receipt of the application. No permit, entitlement or other approval that would alter, relocate, demolish or otherwise negatively impact a proposed or expanded structure of merit, landmark, historic district or heritage property shall be issued while the application is pending.
16 (F) Application notice and review.
(1) The Planning Director shall distribute copies of completed applications for review and comment to the Heritage Librarian, the Corona Historic Preservation Society and any other city department or outside agency that may be affected by a proposed listing or expansion. (2) The owner(s) of property on which the proposed or expanded structure of merit, landmark, or heritage property is located, as shown on the latest assessment roll, shall be provided notice and a copy of the completed application.
(3) If application is for an historic district, then the owner(s) of property within the boundaries of the proposed or expanded historic district, as shown on the latest assessment roll, shall be provided notice and an explanation of the applicable protest procedures, in addition to a copy of the completed application.
(4) The notice shall establish a period of no less than 30 days for review and comment on the application and any written comments or protests received within the review period shall be transmitted to the Historic Preservation Board as part of the staff report. (G) Public hearing. Upon expiration of the review period, a public hearing shall be scheduled before the Historic Preservation Board, in accordance with the city’s standard procedures. Notice of the time, date, place and propose of the hearing shall be mailed to all persons who received notice of the application under § 17.63.090(F) and published in a local newspaper of general circulation no less than ten days prior to the hearing. (H) Structure of merit, landmarks and historic districts – listing procedure. If an application is to list or expand the listing of a structure or merit, landmark or historic district on the Corona Register, then the following procedures shall apply:
(1) After reviewing the submitted materials and receiving any public comments on the application at the public hearing, the Historic Preservation Board shall consider and recommend approval or disapproval of the application to the City Council, based on the eligibility criteria set forth in either § 17.63.050 for landmarks, § 17.63.060 for historic districts and § 17.63.065 for structure of merit;
(2) The City Council shall hold a public hearing to consider the Historic Preservation Board’s recommendation and by resolution may approve or disapprove the application based on the eligibility criteria set forth in either § 17.63.050 for landmarks, § 17.63.060 for historic districts and § 17.63.065 for structure of merit;
(3) Within 14 days of the City Council’s adoption of the resolution, the City Clerk shall mail notice of the decision and a copy of the resolution to all persons who received notice of the application under § 17.63.100(F). A copy of the resolution shall also be transmitted to all city departments;
(4) If the City Council approves the application, the resolution shall be recorded with the Riverside County Recorder on all property on which the approved or expanded landmark is located, structure of merit, or if the application is for an historic district, then all property within the boundaries of the approved or expanded historic district.
17 (I) Heritage Inventory – listing procedure. If an application is to list or expand the listing of a heritage property on the Corona Heritage Inventory, then the following procedures shall apply:
(1) After reviewing the submitted materials and receiving any public comments on the application at the public hearing, the Historic Preservation Board by resolution may approve or disapprove the application, based on the eligibility criteria set forth in § 17.63.090; (2) Within 14 days of the Historic Preservation Board’s adoption of the resolution, the Historic Preservation Board Secretary shall mail notice of the decision and a copy of the resolution to all persons who received notice of the application under § 17.63.100(F). A copy of the resolution shall also be transmitted to all city departments.
17.63.110 Deleted or reduced listing – Application and procedures. (A) An application to delete or to reduce the listing of a structure of merit, landmark, historic district or heritage property may be initiated by the City Council, the Historic Preservation Board, city officials, local entities or a member of the public. An application "to reduce the listing" is a request to narrow, decrease or otherwise diminish the size, scale, scope, boundaries, characteristics, protections or definitions applicable to an existing structure of merit, landmark, historic district or heritage property. No application to delete or reduce the listing of an historic resource that is also listed on the California Register or National Register shall be accepted. (B) Applications shall be submitted to the Planning Department on forms prescribed by the Planning Director. The application shall include the same information as required under § 17.63.100(B), and the application shall identify in sufficient detail how the structure of merit, landmark, historic district or heritage property proposed for deletion or reduction meets the criteria set forth in this section. The Planning Department shall process, notice and review the application in accordance with the procedures set forth in §§ 17.63.100(D) through 17.63.100(G). (C) If the application requests to delete or reduce the listing of a structure of merit, landmark or historic district, then the Historic Preservation Board shall consider and recommend, and the City Council shall approve or disapprove the application, in accordance with the procedures set forth in § 17.63.100(H), based on the criteria set forth in this section. (D) If the application requests to delete or reduce the listing of a property on the Heritage Inventory, then the Historic Preservation Board shall consider and approve or disapprove the application in accordance with the procedures set forth in § 17.63.100(I), based on the criteria set forth in this section.
(E) The listing of a structure of merit, landmark or historic district on the Corona Register, or the listing of a heritage property on Corona Heritage Inventory, may be deleted or reduced only if one of the following findings is made. The Planning Department shall require the applicant to provide information justifying the request for deleting or reducing the listing of a historical resource.
(1) The structure of merit, landmark or heritage property has been destroyed or demolished by natural means, or has been determined to be an unsafe structure by the Building Official;
18 (2) New information or analysis demonstrates the structure of merit, landmark, historic district or heritage property no longer conforms to any of the applicable eligibility criteria set forth in this chapter;
(3) There is clear and convincing evidence that the historic significance or value of the structure of merit, landmark, historic district or heritage property has significantly diminished. (F) Within 14 days of the City Council’s or Historic Preservation Board’s adoption of the resolution, notice of the decision and a copy of the resolution shall be mailed to all persons who received notice of the application under this section. A copy of the resolution shall also be transmitted to all city departments.
(G) If an application to delete or reduce the listing of a structure of merit, landmark or historic district is approved, then a copy of the resolution shall be recorded with the Riverside County Recorder on all property on which the deleted or reduced structure of merit or landmark is located, or if an historic district is deleted or reduced, then all property within the boundaries of the deleted or reduced historic district.
17.63.120 Alteration, relocation or demolition of historic resources – Plan review and approval required.
(A) Prohibition. No person shall alter, relocate or demolish any historic resource, and no permit, entitlement or approval therefor shall be issued, without first submitting a plan for review and obtaining approval as set forth in this section. The required information and contents for the plan shall be established by the Planning Director.
(B) Environmental review. Any plan that may cause a potentially adverse change to an historic resource listed on the Corona Register shall be reviewed in accordance with the city’s Local Guidelines for Implementing the California Environmental Quality Act (CEQA).
Alterations, repairs, restoration and reconstruction consistent with the Secretary of Interior’s Standards for Rehabilitation are categorically exempt from CEQA pursuant to the state CEQA guidelines.
(C) General guidelines. Any plan involving the alteration of an historic resource shall be reviewed and approved, to the extent practical, in accordance with the City’s Design Guidelines for Historic Structures, or in the absence of such guidelines, the Secretary of the Interior’s Standards for Rehabilitation. The following principles shall be adhered to in the review and approval of such plans:
(1) The distinguishing original qualities or character of the historic resource shall not be compromised. The removal or alteration of any historic material or distinctive architectural features should be avoided when possible;
(2) The colors, textures, materials, fenestration, decorative features and details, height, scale, massing and methods of construction proposed shall be consistent with the historic period and character-defining elements of the historic resource and compatible with adjacent structures.
19 (D) Structure of merit, landmarks, historic districts and other historic resources listed on the Corona Register.
(1) Any plan involving a major alteration to an historic resource listed on the Corona Register shall require review and approval by the Historic Preservation Board. The Historic Preservation Board may impose such conditions or restrictions as it deems necessary or appropriate to achieve the purposes of this chapter.
(2) Any plan involving a minor alteration to an historic resource listed on the Corona Register shall require review and approval by the Planning Director. The Planning Director may impose such conditions or restrictions as the Planning Director deems necessary or appropriate to achieve the purposes of this chapter.
(3) Any plan involving a major alteration to a commercial, industrial, quasi-public, mixed use or multi-family development within the Downtown Revitalization Specific Plan (SP-98-01) that is listed on the Corona Register, shall require preliminary review by the Historic Preservation Board and shall require a Precise Plan application for review and approval by the Planning and Housing Commission, pursuant to the provisions of SP-98-01;
(4) Any plan involving the relocation or demolition of a landmark, or an historic resource listed on both the Corona Register and the California Register or National Register, shall require a public hearing, review and recommendation by the Historic Preservation Board to the City Council in accordance with the procedures set forth in § 17.63.100(H), except that any decision shall be based on the criteria set forth in § 17.63.110; (5) Any plan involving the relocation or demolition of an historic resource listed on the Corona Register other than those set forth in the preceding subsection shall require public hearing, review and approval by the Historic Preservation Board in accordance with the procedures set forth in § 17.63.100(I), except that any decision shall be based on the criteria set forth in § 17.63.110; (6) Any plan involving the relocation or demolition of an historic resource listed on the Corona Register shall not be approved unless one of the following findings is made. The Planning Department shall require the applicant to provide information justifying the request for relocating or demolishing a historical resource listed on the Corona Register. (a) The criteria required to delete the historic resource from the Corona Register set forth in § 17.63.110(E) are satisfied;
(b) The historic resource has deteriorated or been modified to the extent that it is no longer representative as an historic resource to be preserved; (c) Denial of the requested relocation or demolition of the historic resource will deprive the owner of all economically viable use of the site;
(d) Relocation or demolition of the historic resource will not have a significant effect on the achievement of the purposes of this chapter and appropriate mitigation measures will be undertaken to substantially reduce or eliminate the loss or diminishment of the historic resource; (e) The historic resource is determined to be unsafe or dangerous by the Building Official and reasonable efforts to correct the situation are economically or physically infeasible.
20 (E) Heritage properties.
(1) Any plan involving a major or minor alteration to a heritage property shall require review and approval by the Planning Director. The Planning Director may impose such conditions or restrictions as the Planning Director deems necessary or appropriate to achieve the purposes of this chapter.
(2) Any plan involving a major alteration to a commercial, industrial, quasi-public, mixed use or multi-family development within the Downtown Revitalization Specific Plan (SP-98-01) that is listed on the Corona Heritage Inventory shall require preliminary review by the Historic Preservation Board and shall require a Precise Plan application for review and approval by the Planning and Housing Commission, pursuant to the provisions of SP-98-01. (3) Any plan involving the relocation or demolition of a heritage property shall require review and approval by the Historic Preservation Board. Upon receipt of the plan for relocation or demolition, the Planning Director shall notify the Corona Historic Preservation Society of the plan and provide a minimum 30 day waiting period from the date of the notice before action is taken by the Historic Preservation Board to approve or disapprove the plan. (4) Any plan involving the relocation or demolition of a heritage property shall not be approved unless one of the following findings is made. The Planning Department shall require the applicant to provide information justifying the request for relocating or demolishing a heritage property.
(a) The heritage property is not a good example of an historic period or architectural style; (b) The heritage property has deteriorated or been modified to the extent that it is no longer representative as an historic resource to be preserved; (c) Denial of the requested relocation or demolition of the heritage property will deprive the owner of all economically viable use of the site;
(d) Relocation or demolition or removal will not have a significant effect on the achievement of the purposes of this chapter;
(e) The heritage property is determined to be unsafe or dangerous by the Building Official and reasonable efforts to correct the situation are infeasible; (f) The heritage property is inconsistent with the zoning designation for the site and adaptive re-use of the heritage property to achieve consistency is not economically viable.
17.63.130 Appeals.
(A) Any decision made by the Historic Preservation Board, under the authority delegated to the Historic Preservation Board in this chapter, may be appealed pursuant to the limitations and procedures set forth in Chapter 17.93 of the code.
21 (B) Any decision made by the Planning Director, under the authority delegated to the Planning Director in this chapter, may be appealed pursuant to the limitations and procedures set forth in Chapter 17.95 of the code.
(C) All appeals brought under this section shall be accompanied by a filing fee established by the City Council.
17.63.140 Other duties of Historic Preservation Board.
(A) The Historic Preservation Board shall consider and recommend to the Planning and Housing Commission approval or disapproval of any proposed amendment to the Historic Resources Element of the General Plan or any other proposed amendment to the General Plan that could affect any historic resource listed on the Corona Register or the Corona Heritage Inventory. (B) The Historic Preservation Board may consider and recommend to the City Council programs for the comprehensive survey of potential historic resources, including potential landmarks and historic districts, for possible listing on the Corona Register or Corona Heritage Inventory and may recommend to the City Council programs to update annually, or as appropriate, the survey of historic resources in the city.
(C) The Historic Preservation Board may consider and recommend to the City Council programs to encourage public outreach, public appreciation and education regarding the management and preservation of historic resources.
(D) The Historic Preservation Board shall consider and make a recommendation to the City Council on any other matter which the City Council deems important to the management and preservation of historic resources in the city.
17.63.150 Heritage Librarian.
(A) The Heritage Librarian, or appointed designee, shall maintain records concerning all historic resources as listed on the Corona Register or Corona Heritage Inventory, information regarding any potential historic resources that are pending listing on the Corona Register or Corona Heritage Inventory and other available records, reports or studies concerning existing or demolished historic sites, improvements and natural features. (B) The Heritage Librarian, or appointed designee, shall act in an advisory capacity to the Planning Director in regard to any pending listing of an historic resource on the Corona Register or Corona Heritage Inventory and any application for the expansion, deletion, reduction, alteration, modification or demolition of an historic resource listed on the Corona Register or Corona Heritage Inventory.
22 17.63.160 Corona Historic Preservation Society.
(A) The Corona Historic Preservation Society (Society) shall receive timely notice of applications submitted for the listing or deletion of historic resources on either the Corona Register or the Heritage Inventory. The Society may, at its discretion, provide comments to the Planning Department regarding such applications or otherwise act in a voluntary advisory capacity. (B) The Society’s program for the identification and placement of historic markers shall not be subject to the provisions of this chapter.
17.63.170 Preservation incentives.
The City Council may establish preservation incentives to encourage owners to designate, maintain, preserve and improve historic resources. The incentives may include, but are not limited to, those set forth in the historic resources element of the General Plan. Only historic resources listed on the Corona Register shall be eligible to apply for preservation incentives.
17.63.180 Historic property preservation agreements.
Pursuant to Cal. Gov’t Code, Article 12, § 50280 (known as the Mills Act), the City Council may enter into a contractual agreement with the owner(s) of an historic property listed on the Corona Register, or the State or National Register of Historic Places, for the purpose of the preservation, rehabilitation and maintenance of a designated historic resource. The terms of a Historic Property Preservation Agreement allow the owner to receive a reduction in property taxes in exchange for the property owner’s commitment to specific restoration improvements and satisfactory maintenance of the Register property. The agreement shall include, but not be limited to, the contract provisions as required under state law and shall extend for a minimum period of ten years, renewed annually, until and unless a notice of non-renewal or cancellation is filed. The application process, review procedures and required contract provisions for Preservation Agreements shall be established by separate resolution of the City Council.
17.63.190 State Historical Building Code.
Pursuant to the State of California Health and Safety Code, the Building Official shall apply the State Historical Building Code in issuing any permit, entitlement or approval for any alteration of an historic resource for the purpose of preserving, rehabilitating, relocating or continuing use of the historic resource. The State Historic Building Code shall be applied as provided in this section to the extent it does not result in an unsafe condition, as determined by the Building Official.
17.63.200 Unsafe or dangerous conditions.
(A) Nothing in this chapter shall prevent the construction, alteration, repair, restoration, stabilization or demolition of an historic structure if the Building Official has determined the
23 historic resource creates an unsafe or dangerous condition that is an immediate threat to public health or safety and the proposed action is necessary to mitigate the unsafe or dangerous condition. (B) Prior to issuing a permit for any action authorized under this section, the Building Official shall make all reasonable efforts to consult with the Planning Director and Code Compliance Division to determine if there are feasible alternatives to the proposed action that will adequately protect the public health and safety.
(C) Nothing in this chapter shall prevent the trimming, alteration or removal of heritage trees listed in either the Corona Register or Heritage Inventory, if the city’s Landscape Resources Manager has determined that the preservation of the tree(s) will create an unsafe or dangerous condition that is a threat to public health or safety.
17.63.210 Public projects and improvements.
(A) Whenever any project, action or approval by the city may alter, relocate or demolish a landmark, historic district, heritage property or any other historic resource, the department responsible for the project, action or approval shall consult with the Planning Director as early in the process as possible to ensure conformance with the provisions and objectives of this chapter. (B) Whenever a public project or improvement involves a resource or district listed on the Corona Register or Heritage Inventory, the improvement, repair or replacement shall be performed in such a manner as to be consistent with the historic context of the site and surrounding area. The improvements include, but are not limited to: the installation, repair and replacement of sidewalks, curb and gutter, street trees, streetlights, walls and fencing and any other such physical elements which are visible to the general public and can be considered a contributing resource to an historic property or district.
17.63.220 Duty to maintain and repair historic resources.
The owner(s) of property listed on the Corona Register or Corona Heritage Inventory, the owner(s) of property on which an historic resource is located or the owner(s) of property within an historic district shall maintain and keep in good repair and shall prevent deterioration and decay of the historic resource or any portion of the site, improvements or natural features that contribute to the characteristic of the historic resource. The owner(s) of such property, or any other person responsible for the maintenance or repair of the property, shall avoid actions that create adverse impacts to adjacent properties and shall comply with all applicable codes, laws and regulations governing the maintenance and repair of property in the city, including those established by this chapter.
17.63.230 Violations and enforcement.
(A) Any person who violates this chapter, or who fails to comply with a condition of permit, entitlement or approval issued in accordance with this chapter, shall be guilty of a misdemeanor.
24 (B) Any person who alters, relocates or demolishes an historic resource in violation of this chapter shall be guilty of a misdemeanor and shall be required, at that person’s sole cost and expense, to restore the historic resource and any site, improvement, natural feature or portion thereof that contributes to the characteristics of the historic resource to its condition prior to such alteration, relocation or demolition.
25 SUMMARY
On October 16, 2024, the Corona City Council will consider amending Chapter 17.63 (Historical Resources) of the Corona Municipal Code and adding Chapter 2.38 (Historic Preservation Board) to the Corona Municipal Code. A certified copy of the full text of this proposed ordinance amendment is posted at the City Clerk’s Office.
The City Council meets at 6:30 p.m. in the Council Chambers in the Corona City Hall located at 400 South Vicentia Avenue. The City Clerk is located in Suite 115 of the City Hall near the north entrance.
JAMIER\05000.20000\10288996.2
CHAPTER 2.38
HISTORIC PRESERVATION BOARD
Sections
2.38.010 Establishment.
2.38.020 Members - Qualifications.
2.38.030 Terms of office.
2.38.040 Organization.
2.38.050 Stipend.
2.38.060 Duties.
2.38.010 Establishment.
There is established a Historic Preservation Board for the City of Corona.
2.38.020 Members – Composition and qualifications.
(A) The Historic Preservation Board shall consist of five members selected and appointed by City Councilmembers pursuant to state and local law. (B) Board members shall be residents of the city at the time of their appointment, and continuously during their incumbency.
(C) Board members shall demonstrate competence, interest, or knowledge of historic preservation.
2.38.030 Terms of office.
(A) Board members shall be appointed for a term of four years. (B) The term of office for each Board member is subject to the provisions of Chapter
2.35. (C) The City Council may, by majority vote, remove any Board member at any time without cause.
2.38.040 Organization.
(A) The Board shall hold at least one meeting annually. (B) The Board shall appoint the Chair from among its members annually and appoint a Vice-Chair to preside in the absence of the Chair.
JAMIER\05000.20000\10288996.2
(C) The Board may adopt all necessary by-laws, rules and regulations for the conduct of its meetings.
(D) If the Board is not able to maintain a quorum after the scheduling of two consecutive meetings to perform the duties set forth in this chapter, the duties shall be performed by the Planning and Housing Commission established pursuant to Chapter
2.37. 2.38.050 Stipend.
Each member of the Board shall receive $50 for each regular meeting attended, not to exceed $100 per month.
2.38.060 Duties.
The Board shall have the following powers and duties:
(A) To perform the duties and functions prescribed by Chapter 17.63., (B) To perform any other powers and duties prescribed by the City Council that are not inconsistent with any state or local law.
JAMIER\05000.20000\10288915.2
CHAPTER 17.63
HISTORIC RESOURCES
17.63.010 Purpose.
17.63.020 Definitions.
17.63.030 Applicability.
17.63.040 Corona Register – Establishment.
17.63.050 Corona Register – Landmark listing criteria.
17.63.060 Corona Register – Historic District listing criteria.
17.63.065 Corona Register – Structure of Merit listing criteria.
17.63.070 Corona Register – Historic marker listing criteria.
17.63.080 Corona Heritage Inventory – Establishment.
17.63.090 Corona Heritage Inventory – Heritage property listing criteria.
17.63.100 Listing or expanded listing – Application and procedures.
17.63.110 Deleted or reduced listing – Application and procedures.
17.63.120 Alteration, relocation or demolition of historic resources - Plan review and approval required.
17.63.130 Appeals.
17.63.140 Other duties of Planning CommissionHistoric Preservation Board.
17.63.150 Heritage Librarian.
17.63.160 Corona Historic Preservation Society.
17.63.170 Preservation incentives.
17.63.180 Historic property preservation agreements.
17.63.190 State Historic Building Code.
17.63.200 Unsafe or dangerous conditions.
17.63.210 Public projects and improvements.
17.63.220 Duty to maintain and repair historic resources.
17.63.230 Violations and Enforcement.
JAMIER\05000.20000\10288915.2
17.63.010 Purpose.
It is the purpose of this chapter to promote the recognition, preservation and continued viability of historic resources in the City of Corona in the interest of prosperity, social and cultural enrichment and the general welfare of the people of Corona, through the following principles:
(A) Encouraging knowledge and civic pride in the character of Corona’s heritage and its many historic resources, in accordance with the declaration of intent and purpose in the city’s General Plan;
(B) Providing a process and register for the public identification and official recognition of Corona’s many historic resources;
(C) Establishing processes for the thoughtful review of plans for future projects and developments that could affect the management and preservation of Corona’s historic resources;
(D) Encouraging and assisting Corona’s private property owners with the management and preservation of their own historic resources and properties; (E) Promoting the management and preservation of Corona’s historic resources, including historic districts, that reflect the city’s diverse cultural, social, artistic, economic, engineering, political and architectural heritage; (F) Enhancing Corona’s cultural heritage as a general attraction to residents, tourists, businesses, industries and development enterprises, thereby strengthening Corona’s general economy around its core heritage areas; (G) Promoting the use of Corona’s historic resources and districts for the education, enjoyment and welfare of the people of the city.
17.63.020 Definitions.
Whenever the following words or terms are used in this chapter, they shall have the meaning established by this section.
(A) "Alteration" means any change or modification, through public or private action, of an historic resource, including, but not limited to: exterior changes to or modifications of an improvement or site or any of its architectural details or visual characteristics, including paint color and surface texture, grading, surface paving, new structures, renovation or rehabilitation of structures, additions to structures or the removal of mature trees or other natural features; disturbances of archaeological or paleontological sites or areas; the placement or removal of any improvements or natural features such as signs, plaques, light fixtures, street furniture, walls, fences, steps, plantings or landscape accessories that affect the historic qualities of the property. (B) "Archaeological or paleontological site" means an area containing the remains or evidence of prehistoric humans or prehistoric human activities or an area containing
JAMIER\05000.20000\10288915.2
fossilized or preserved remains of plants or animals that generally predates the emergence of humans on the earth.
(C ) “California Historical Landmarks” means buildings, structures, sites, or places that have been determined to have statewide historical significance by meeting at least one of the following criteria: 1) the first, last, only, or most significant of its type in the state or within a large geographic region (Northern, Central, or Southern California), 2) associated with an individual or group having a profound influence on the history of California, or 3) a prototype of, or an outstanding example of, a period, style, architectural movement or construction or is one of the more notable works or the best surviving work in a region of a pioneer architect, designer or master builder. (CD) "California Register" means the California Register of Historic Resources as defined in Cal. Public Resources Code § 5020.1.
(DE) "Contributing historic resource” means a site, improvement or natural feature within a designated historic district, which adds to the historic qualities of the area, has a special character or aesthetic interest or value and has been identified on the Corona Register for that reason. Contributing historic resources include landmarks, heritage properties or historic resources listed on the California Register or National Register. (EF) "Corona Heritage Inventory" means the official listing of heritage properties and historic artifacts as adopted by the Planning CommissionHistoric Preservation Board pursuant to this chapter.
(FG) "Corona Register" means the official list of landmarks, and historic districts and all contributing historic resources within historic districts, and historic artifacts as adopted by the City Council pursuant to this chapter, and shall be officially known as the Corona Register of Historic Resources.
(GH) "Design guidelines" means the principles contained in a document approved by the city which describe and/or illustrate appropriate methods of rehabilitation, alteration or construction affecting historic resources. These guidelines are in addition to any other applicable design guidelines adopted by the city, whether by ordinance or by resolution, and the Secretary of the Interior’s Standards for Rehabilitation Projects. (HI) "Exterior architectural feature” means the architectural style, design, general arrangement, components and natural features and all the outer surfaces of an improvement, including, but not limited to, the type and texture of the building materials, the type and style of windows, doors, lights, signs, walls, fences and other fixtures appurtenant to the improvement.
(J) “Historic Artifact” means monuments, murals, markers or other such artifact that are part of Corona’s heritage and listed on the Corona Register. (IK) "Heritage property" means a site, historic artifact, improvement or natural feature listed on the Corona Heritage Inventory in accordance with the listing criteria set forth in § 17.63.090.
JAMIER\05000.20000\10288915.2
(JL) "Historic District" means a defined geographic area and all contributing historic resources within the area, listed on the Corona Register in accordance with the listing criteria set forth in § 17.63.060.
(KM) "Historic marker" means a sign, plaque, monument or other symbol, placed by either the City of Corona, the Corona Historic Preservation Society, Corona History Association, State office of Historic Preservation or National Park Service, for the purpose of recognizing one or more of the following:
(1) Events that have made a significant contribution to the history of Corona, the region, the state or the nation;
(2) Persons significant in Corona’s past;
(3) Examples of distinctive characteristics of a style, type, period or method of construction or a valuable example of the use of materials or craftsmanship; (4) Special elements of the city’s cultural, social, economic, political, aesthetic, engineering, architectural or natural history;
(5) The work of a notable builder, designer or architect; (6) Outstanding elements of architectural design, detail, materials or craftsmanship of a particular historic period;
(7) A unique location or physical characteristic representing an established and familiar visual feature of a neighborhood;
(8) An archeological or paleontological site; or
(9) A natural setting or feature that strongly contributes to the well being of the people of the city. The actual site, improvement or natural feature that is designated by the historic marker may or may not be listed, or may or may not be eligible for listing, on the Corona Register or the Corona Heritage Inventory.
(N) “Historic Preservation Board” means the Historic Preservation Board of the City of Corona established pursuant to Chapter 2.38
(LO) "Historic resource" means any structure of merit, landmark, historic district or contributing historic resource listed on the Corona Register, any heritage property listed on the Corona Heritage Inventory or any site, improvement or natural feature listed on the California Register or the National Register.
(MP) "Improvement" means any building, structure, structural work of art, parking facility, fence, gate, wall or other object constituting a physical betterment of real property or any part of such betterment.
(NQ) "Landmark" means a site, improvement or natural feature listed on the Corona Register in accordance with the listing criteria set forth in § 17.63.050. (OR) "Major alteration" means any alteration of an historic resource, which is not otherwise classified as a minor alteration.
JAMIER\05000.20000\10288915.2
(PS) "Minor alteration" means the alteration of an historic resource that does not conflict with the integrity of the historic resource and does not involve the addition of square footage or modification of an existing improvement or site exceeding 30% of the improvement or site area. Minor alterations include ordinary maintenance and repair, painting and re-roofing which are consistent with the architecture style and period of the historic resource.
(QT) "National Register" means the official federal list of historic resources as authorized by the National Historic Preservation Act of 1966, maintained by National Park Service under the United States Department of Interior and commonly known as the National Register of Historic Places.
(RU) "Natural feature" means any physical or ecological characteristic of a site, including any landscaping, plant life, natural object or scenic condition. (SV) "Ordinary maintenance" means any cleaning, painting and/or other restoration which does not result in the alteration of an improvement or landmark. (TW) "Person" means any individual, association, partnership, firm, corporation, public agency or political subdivision.
(UX) "Planning and Housing Commission" means the Planning and Housing Commission of the City of Corona established pursuant to Chapter 2.37. .
(VY) "Planning Director" means the Planning Director of the City of Corona. (WZ) "Secretary of the Interior’s Standards for Rehabilitation" means the Secretary of the Interior’s Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings by the U.S. Department of the Interior or the National Park Service. (XAA) "Site" means any parcel or portion of real property, or any combination thereof, or any archaeological or paleontological site. (BB) “Structure of Merit” means a heritage property that does not meet the listing criteria for a landmark but represents Corona's heritage by having historic, cultural or architectural value worthy of preservation and is listed on the Corona Register in accordance with the listing criteria set forth in § 17.63.065. (YCC) "Survey" means the individual documentation of a site, improvement or natural feature for potential listing on the Corona Register or the Corona Heritage Inventory in accordance with the historic documentation standards of the State of California.
17.63.030 Applicability.
This chapter shall apply to all historic resources listed on the Corona Register of Historic Resources, the Corona Heritage Inventory, the California Register and the National Register.
JAMIER\05000.20000\10288915.2
17.63.040 Corona Register – Establishment.
(A) The City Council shall establish the Corona Register of Historic Resources. The intent of this section is to provide a local register comparable with the California Register and National Register, with similar criteria, definitions and considerations. (B) The Corona Register shall include structures of merit, historic artifacts, landmarks, historic markers and historic districts, and the contributing historic resources within such historic districts, as listed by the City Council in accordance with this chapter. Sites, improvements and natural features within the city’s boundaries that are listed on the California Register or the National Register or the California Historical Landmarks shall automatically be deemed listed on the Corona Register. (C) Historic resources listed on the Corona Register shall be eligible to apply for financial and other incentives established by the City Council that promote historic resource management and preservation in the city.
17.63.050 Corona Register – Landmark listing criteria.
(A) Landmarks are those physical elements of Corona’s historical development that exhibit exceptional historical, archeological, cultural, architectural, or artistic heritage that provide the community with its own unique civic identity and character. A site, improvement or natural feature shall be eligible for listing on the Corona Register as a landmark if the City Council finds that all of the following criteria are satisfied:
(1) It has been in existence for a period of at least 50 years prior to 1950, or if in existence after 1950 less than 50 years old, is of exceptional historical importance to the community;
(2) It has significant historic, cultural or architectural value and its designation as a landmark is reasonable, appropriate and necessary to promote, preserve and further the purposes and intent of this chapter;
(3) It exhibits one or more of the following characteristics:
(a) It is associated with events that have made a significant contribution to the history of Corona, the region, the state or the nation; (b) It is associated with the lives of persons significant in Corona’s past; (c) It embodies distinctive characteristics of a style, type, period or method of construction or a valuable example of the use of materials or craftsmanship; (d) It exemplifies or reflects special elements of the city’s cultural, social, economic, political, aesthetic, engineering, architectural or natural history; (e) It is representative of the work of a notable builder, designer or architect;
JAMIER\05000.20000\10288915.2
(f) It exemplifies one of the best remaining architectural styles or types in a neighborhood or contains outstanding elements of architectural design, detail, materials or craftsmanship of a particular historic period;
(g) It is in a unique location or contains physical characteristics representing an established and familiar visual feature of a neighborhood; (h) It is a potential source of archeological or paleontological interest; (i) It is or contains a natural setting or feature that strongly contributes to the well being of the people of the city;
(4) It has integrity of location, design, setting, materials, workmanship, feeling and association;
(a) Integrity is the authenticity of an historic resource’s physical identity, as evidenced by the survival of characteristics that existed during the historic resource’s period of significance, to be recognizable and to convey the reasons for its significance; (b) A site, improvement or natural feature that has diminished historic character or appearance may still have sufficient integrity for the Corona Register if it retains the potential to yield significant scientific or historical information or specific data or retains sufficient character to convey the reasons for its significance. Thus, it is possible that a site, improvement or natural feature may not retain sufficient integrity to meet the criteria for listing on the California Register or National Register, but it may still be eligible for listing on the Corona Register;
(c) Integrity shall be judged with reference to the particular criterion or criteria which provide its eligibility. An improvement removed from its original location shall be eligible if it is significant primarily for its architectural value or it is the surviving structure most importantly associated with an historic person or event. (CB) A reconstructed improvement shall be eligible if the reconstruction is historically accurate, the improvement is presented in a dignified manner as part of a restoration master plan and no other original improvement survives that has the same association. (DC) A site, improvement or natural feature that is intended to be primarily commemorative shall be eligible if its design, age, tradition or symbolic value creates its own historic significance. Examples include, but are not limited to, public statuary, murals, monuments, sculptures, graves and birthplaces. These sites or improvements may be identified by the placement of an historic marker.
17.63.060 Corona Register – Historic District listing criteria. (A) An historic district is a geographically defined area possessing a concentration of contributing historic resources that relate to each other and are unified by physical development or historical context.
(B) A defined area shall be eligible for listing on the Corona Register as an historic district if the City Council finds that all the following criteria are satisfied:
JAMIER\05000.20000\10288915.2
(1) The defined area is a unified geographical area with precisely defined boundaries;
(2) The defined area contains a significant concentration of individually recognized contributing historic resources united in character by an historic plan, physical development, cultural heritage, past events, an historic period or prehistory era, aesthetics design or architectural traditions;
(3) At least 75% of the contributing historic resources in the defined area are 50 years of age or older and retain their original architectural character; (4) The civic and historic value of the contributing historic resources is greater as a collective whole than as individual historic resources; (5) The defined area has significant historic, cultural or architectural value and its designation as an historic district promotes, preserves and furthers the purposes and intent of this chapter.
(C) Upon the listing of an historic district on the Corona Register, all identified contributing historic resources in the historic district shall be individually listed on the Corona Register, along with notation of the historic district’s noncontributing resources.
17.63.065 Corona Register – Structures of Merit listing criteria. (A) A structure of merit is a heritage property that does not meet the criteria identified for a landmark but includes physical elements that contribute to Corona’s heritage and are worthy of preservation.
(B) Heritage properties shall be eligible for listing on the Corona Register as a structure of merit if the City Council finds that one or more of the following criteria are satisfied:
(1) It is an example of a type of building or structure that was once common in Corona’s heritage but is now rare with most of the identifying features of the building or structure from the era preserved.
(2) It is connected with a business or use that was once common in Corona’s heritage but is now rare.
(3) It is a cultural resource that does not meet all the criteria for a landmark listing yet retains sufficient integrity to satisfy one or more criteria of a landmark listed in §17.63.050.
(4) It yields information or is likely to yield information important to Corona’s history or prehistory.
17.63.070 Corona Register – Historic marker listing criteria.
An historic marker, as defined by this chapter, may be listed on the Corona Register by resolution of the City Council.
JAMIER\05000.20000\10288915.2
17.63.080 Corona Heritage Inventory – Establishment.
The Planning Commission shall establish the Corona Heritage Inventory. The Corona Heritage Inventory shall include only heritage properties listed by the Planning Commission in accordance with this chapter and approved by the Historic Preservation Board. Heritage properties listed on the Corona Heritage Inventory may or may not be eligible for listing on the Corona Register.
17.63.090 Corona Heritage Inventory – Heritage property listing criteria.
A site, historic artifact, improvement or natural feature shall be eligible for listing on the Corona Heritage Inventory as a heritage property if the Planning CommissionHistoric Preservation Board finds that all the following criteria are satisfied:
(A) An official survey describing the features, merits and quality of the site, historic artifact, improvement or natural feature has been prepared; (B) The site, historic artifact, improvement or natural feature is identified as a potential resource to be conserved because of its age, and either its context in the neighborhood, its association with an historic event or period or its significance to the architectural, engineering, scientific, economic, agricultural, educational, cultural, social, artistic, political or military history of Corona.
17.63.100 Listing or expanded listing – Application and procedures. (A) General. An application to list or to expand the listing of a structure of merit, landmark,, historic district or heritage property may be initiated by the City Council, the Planning CommissionHistoric Preservation Board, city officials, local entities or a member of the public. An application "to expand the listing" is a request to enlarge, add to or otherwise augment the size, scale, scope, boundaries, characteristics, protections or definitions applicable to an existing structure of merit, landmark, historic district or heritage property.
(B) Contents. Applications shall be submitted to the Planning Department on forms prescribed by the Planning Director. The application shall include, but is not limited to, the following:
(1) The location or address of the proposed or expanded structure of merit, landmark, historic district or heritage property;
(2) The Assessor’s parcel number(s) of all properties on which the structure of merit, landmark, or heritage property is located, or if application is for an historic district, then the Assessor’s parcel number for all property within the boundaries of the proposed or expanded historic district;
(3) If the application is for a structure of merit, landmark, or historic district, then a legal description of all properties for which an Assessor’s parcel number is required;
JAMIER\05000.20000\10288915.2
(4) The name and address of the owner(s) of all property for which an Assessor’s parcel number is required, as shown on the latest assessment roll; (5) A full description of the proposed or expanded structure of merit, landmark, historic district or heritage property;
(6) Any other information deemed necessary by the Planning Director. (C) Additional information. Applications shall identify in sufficient detail how the proposed or expanded historic resource meets the applicable eligibility criteria set forth in this chapter: § 17.63.050 for landmarks, § 17.63.060 for historic districts, § 17.63.065 for structure of merit or § 17.63.080 for heritage properties. The application shall also be accompanied by an official survey describing the features, merits and quality of the proposed or expanded historic resource.
(D) Property owner consent required.
(1) If the application is for a landmark or structure of merit, then written and signed consent shall be obtained from all owner(s) of property on which the proposed or expanded landmark is located, as shown on the latest assessment roll; (2) If the application is for an historic district, then any written protest received must constitute less than 49% of the owner(s) of property located within the boundaries of the proposed or expanded historic district, as shown on the latest assessment roll. For purposes of determining a majority protest, each property is allocated one representative to register either consent or nonconsent to the inclusion of their property within the proposed or expanded historic district. Multiple owners of a property are collectively entitled one representative. Multiple adjacent parcels under common ownership are considered one property.
(3) The applicant is responsible for all costs associated with the notification to the respective property owners of the opportunity to register their concurrence or protest of the proposed district.
(E) Completed application. The Planning Director, or his or her designee, shall determine if an application is complete or incomplete within 30 days of receipt of the application. No permit, entitlement or other approval that would alter, relocate, demolish or otherwise negatively impact a proposed or expanded structure of merit, landmark, historic district or heritage property shall be issued while the application is pending. (F) Application notice and review.
(1) The Planning Director shall distribute copies of completed applications for review and comment to the Heritage Librarian, the Corona Historic Preservation Society and any other city department or outside agency that may be affected by a proposed listing or expansion.
(2) The owner(s) of property on which the proposed or expanded structure of merit, landmark, or heritage property is located, as shown on the latest assessment roll, shall be provided notice and a copy of the completed application.
JAMIER\05000.20000\10288915.2
(3) If application is for an historic district, then the owner(s) of property within the boundaries of the proposed or expanded historic district, as shown on the latest assessment roll, shall be provided notice and an explanation of the applicable protest procedures, in addition to a copy of the completed application. (4) The notice shall establish a period of no less than 30 days for review and comment on the application and any written comments or protests received within the review period shall be transmitted to the Planning CommissionHistoric Preservation Board as part of the staff report.
(G) Public hearing. Upon expiration of the review period, a public hearing shall be scheduled before the Planning CommissionHistoric Preservation Board, in accordance with the city’s standard procedures. Notice of the time, date, place and propose of the hearing shall be mailed to all persons who received notice of the application under § 17.63.090(F) and published in a local newspaper of general circulation no less than ten days prior to the hearing.
(H) Structure of merit, Llandmarks and historic districts – listing procedure. If an application is to list or expand the listing of a structure or merit, landmark or historic district on the Corona Register, then the following procedures shall apply:
(1) After reviewing the submitted materials and receiving any public comments on the application at the public hearing, the Planning CommissionHistoric Preservation Board shall consider and recommend approval or disapproval of the application to the City Council, based on the eligibility criteria set forth in either § 17.63.050 for landmarks, or § 17.63.060 for historic districts and § 17.63.065 for structure of merit; (2) The City Council shall hold a public hearing to consider the Planning CommissionHistoric Preservation Board’s recommendation and by resolution may approve or disapprove the application based on the eligibility criteria set forth in either § 17.63.050 for landmarks, or § 17.63.060 for historic districts and § 17.63.065 for structure of merit;
(3) Within 14 days of the City Council’s adoption of the resolution, the City Clerk shall mail notice of the decision and a copy of the resolution to all persons who received notice of the application under § 17.63.100(F). A copy of the resolution shall also be transmitted to all city departments;
(4) If the City Council approves the application, the resolution shall be recorded with the Riverside County Recorder on all property on which the approved or expanded landmark is located, structure of merit, or if the application is for an historic district, then all property within the boundaries of the approved or expanded historic district. (I) Heritage Inventory – listing procedure. If an application is to list or expand the listing of a heritage property on the Corona Heritage Inventory, then the following procedures shall apply:
(1) After reviewing the submitted materials and receiving any public comments on the application at the public hearing, the Planning CommissionHistoric Preservation
JAMIER\05000.20000\10288915.2
Board by resolution may approve or disapprove the application, based on the eligibility criteria set forth in § 17.63.090;
(2) Within 14 days of the Planning CommissionHistoric Preservation Board’s adoption of the resolution, the Planning CommissionHistoric Preservation Board Secretary shall mail notice of the decision and a copy of the resolution to all persons who received notice of the application under § 17.63.100(F). A copy of the resolution shall also be transmitted to all city departments.
17.63.110 Deleted or reduced listing – Application and procedures. (A) An application to delete or to reduce the listing of a structure of merit, landmark, historic district or heritage property may be initiated by the City Council, the Planning CommissionHistoric Preservation Board, city officials, local entities or a member of the public. An application "to reduce the listing" is a request to narrow, decrease or otherwise diminish the size, scale, scope, boundaries, characteristics, protections or definitions applicable to an existing structure of merit, landmark, historic district or heritage property. No application to delete or reduce the listing of an historic resource that is also listed on the California Register or National Register shall be accepted. (B) Applications shall be submitted to the Planning Department on forms prescribed by the Planning Director. The application shall include the same information as required under § 17.63.100(B), and the application shall identify in sufficient detail how the structure of merit, landmark, historic district or heritage property proposed for deletion or reduction meets the criteria set forth in this section. The Planning Department shall process, notice and review the application in accordance with the procedures set forth in §§ 17.63.100(D) through 17.63.100(G).
(C) If the application requests to delete or reduce the listing of a structure of merit, landmark or historic district, then the Planning CommissionHistoric Preservation Board shall consider and recommend, and the City Council shall approve or disapprove the application, in accordance with the procedures set forth in § 17.63.100(H), based on the criteria set forth in this section.
(D) If the application requests to delete or reduce the listing of a property on the Heritage Inventory, then the Planning CommissionHistoric Preservation Board shall consider and approve or disapprove the application in accordance with the procedures set forth in § 17.63.100(I), based on the criteria set forth in this section. (E) The listing of a structure of merit, landmark or historic district on the Corona Register, or the listing of a heritage property on Corona Heritage Inventory, may be deleted or reduced only if one of the following findings is made:. The Planning Department shall require the applicant to provide information justifying the request for deleting or reducing the listing of a historical resource. (1) The structure of merit, landmark or heritage property has been destroyed or demolished by natural means, or has been determined to be an unsafe structure by the Building Official;
JAMIER\05000.20000\10288915.2
(2) New information or analysis demonstrates the structure of merit, landmark, historic district or heritage property no longer conforms to any of the applicable eligibility criteria set forth in this chapter;
(3) There is clear and convincing evidence that the historic significance or value of the structure of merit, landmark, historic district or heritage property has significantly diminished.
(F) Within 14 days of the City Council’s or Planning CommissionHistoric Preservation Board’s adoption of the resolution, notice of the decision and a copy of the resolution shall be mailed to all persons who received notice of the application under this section.
A copy of the resolution shall also be transmitted to all city departments. (G) If an application to delete or reduce the listing of a structure of merit, landmark or historic district is approved, then a copy of the resolution shall be recorded with the Riverside County Recorder on all property on which the deleted or reduced structure of merit or landmark is located, or if an historic district is deleted or reduced, then all property within the boundaries of the deleted or reduced historic district.
17.63.120 Alteration, relocation or demolition of historic resources – Plan review and approval required.
(A) Prohibition. No person shall alter, relocate or demolish any historic resource, and no permit, entitlement or approval therefor shall be issued, without first submitting a plan for review and obtaining approval as set forth in this section. The required information and contents for the plan shall be established by the Planning Director. (B) Environmental review. Any plan that may cause a potentially adverse change to an historic resource listed on the Corona Register shall be reviewed in accordance with the city’s Local Guidelines for Implementing the California Environmental Quality Act (CEQA). Alterations, repairs, restoration and reconstruction consistent with the Secretary of Interior’s Standards for Rehabilitation are categorically exempt from CEQA pursuant to the state CEQA guidelines.
(C) General guidelines. Any plan involving the alteration of an historic resource shall be reviewed and approved, to the extent practical, in accordance with the cCity’s dDesign gGuidelines for hHistoric sStructures, or in the absence of such guidelines, the Secretary of the Interior’s Standards for Rehabilitation. The following principles shall be adhered to in the review and approval of such plans:
(1) The distinguishing original qualities or character of the historic resource shall not be compromised. The removal or alteration of any historic material or distinctive architectural features should be avoided when possible; (2) The colors, textures, materials, fenestration, decorative features and details, height, scale, massing and methods of construction proposed shall be consistent with the historic period and character-defining elements of the historic resource and compatible with adjacent structures.
JAMIER\05000.20000\10288915.2
(D) Structure of merit, Llandmarks, historic districts and other historic resources listed on the Corona Register.
(1) Any plan involving a major alteration to an historic resource listed on the Corona Register shall require review and approval by the Planning CommissionHistoric Preservation Board. The Planning CommissionHistoric Preservation Board may impose such conditions or restrictions as it deems necessary or appropriate to achieve the purposes of this chapter.
(2) Any plan involving a minor alteration to an historic resource listed on the Corona Register shall require review and approval by the Planning Director. The Planning Director may impose such conditions or restrictions as the Planning Director deems necessary or appropriate to achieve the purposes of this chapter. (3) Any plan involving a major alteration to a commercial, industrial, quasi-public, mixed use or multi-family development within the Downtown Revitalization Specific Plan (SP-98-01) that is listed on the Corona Register, shall require preliminary review by the Historic Preservation Board and shall require a Precise Plan application for review and approval by the Planning and Housing Commission, in accordance withpursuant to the provisions of SP-98-01;
(4) Any plan involving the relocation or demolition of a landmark, or an historic resource listed on both the Corona Register and the California Register or National Register, shall require a public hearing, review and approval recommendation by the Historic Preservation Board to the City Council by the City Council in accordance with the procedures set forth in § 17.63.100(H), except that any decision shall be based on the criteria set forth in § 17.63.110;
(5) Any plan involving the relocation or demolition of an historic resource listed on the Corona Register other than those set forth in the preceding subsection shall require public hearing, review and approval by the Planning CommissionHistoric Preservation Board in accordance with the procedures set forth in § 17.63.100(I), except that any decision shall be based on the criteria set forth in § 17.63.110; (6) Any plan involving the relocation or demolition of an historic resource listed on the Corona Register shall not be approved unless one of the following findings is made:.
The Planning Department shall require the applicant to provide information justifying the request for relocating or demolishing a historical resource listed on the Corona Register. (a) The criteria required to delete the historic resource from the Corona Register set forth in § 17.63.110(E) are satisfied;
(b) The historic resource has deteriorated or been modified to the extent that it is no longer representative as an historic resource to be preserved; (c) Denial of the requested relocation or demolition of the historic resource will deprive the owner of all economically viable use of the site; (d) Relocation or demolition of the historic resource will not have a significant effect on the achievement of the purposes of this chapter and appropriate mitigation
JAMIER\05000.20000\10288915.2
measures will be undertaken to substantially reduce or eliminate the loss or diminishment of the historic resource;
(e) The historic resource is determined to be unsafe or dangerous by the Building Official and reasonable efforts to correct the situation are economically or physically infeasible.
(E) Heritage properties.
(1) Any plan involving a major or minor alteration to a heritage property shall require review and approval by the Planning Director. The Planning Director may impose such conditions or restrictions as the Planning Director deems necessary or appropriate to achieve the purposes of this chapter.
(2) Any plan involving a major alteration to a commercial, industrial, quasi-public, mixed use or multi-family development within the Downtown Revitalization Specific Plan (SP-98-01) that is listed on the Corona Heritage Inventory shall require preliminary review by the Historic Preservation Board and shall require a Precise Plan application for review and approval by the Planning and Housing Commission, in accordance withpursuant to the provisions of SP-98-01.
(3) Any plan involving the relocation or demolition of a heritage property shall require review and approval by the Planning Director Historic Preservation Board. Upon receipt of the plan for relocation or demolition, the Planning Director shall notify the Corona Historic Preservation Society of the plan and provide a minimum 30 day waiting period from the date of the notice before taking action is taken by the Historic Preservation Board to approve or disapprove the plan.
(4) Any plan involving the relocation or demolition of a heritage property shall not be approved unless one of the following findings is made:. The Planning Department shall require the applicant to provide information justifying the request for relocating or demolishing a heritage property.
(a) The heritage property is not a good example of an historic period or architectural style;
(b) The heritage property has deteriorated or been modified to the extent that it is no longer representative as an historic resource to be preserved; (c) Denial of the requested relocation or demolition of the heritage property will deprive the owner of all economically viable use of the site; (d) Relocation or demolition or removal will not have a significant effect on the achievement of the purposes of this chapter;
(e) The heritage property is determined to be unsafe or dangerous by the Building Official and reasonable efforts to correct the situation are infeasible; (f) The heritage property is inconsistent with the zoning designation for the site and adaptive re-use of the heritage property to achieve consistency is not economically viable.
JAMIER\05000.20000\10288915.2
17.63.130 Appeals.
(A) Any decision made by the Planning CommissionHistoric Preservation Board, under the authority delegated to the Planning CommissionHistoric Preservation Board in this chapter, may be appealed pursuant to the limitations and procedures set forth in Chapter 17.93 of the code.
(B) Any decision made by the Planning Director, under the authority delegated to the Planning Director in this chapter, may be appealed pursuant to the limitations and procedures set forth in Chapter 17.95 of the code.
(C) All appeals brought under this section shall be accompanied by a filing fee established by the City Council.
17.63.140 Other duties of Planning CommissionHistoric Preservation Board. (A) The Planning CommissionHistoric Preservation Board shall consider and recommend to the Planning and Housing Commission City Council approval or disapproval of any proposed amendment to the Historic Resources Element of the General Plan or any other proposed amendment to the General Plan that could affect any historic resource listed on the Corona Register or the Corona Heritage Inventory. (B) The Planning CommissionHistoric Preservation Board may consider and recommend to the City Council programs for the comprehensive survey of potential historic resources, including potential landmarks and historic districts, for possible listing on the Corona Register or Corona Heritage Inventory and may recommend to the City Council programs to update annually, or as appropriate, the survey of historic resources in the city.
(C) The Planning CommissionHistoric Preservation Board may consider and recommend to the City Council programs to encourage public outreach, public appreciation and education regarding the management and preservation of historic resources.
(D) The Planning CommissionHistoric Preservation Board shall consider and make a recommendation to the City Council on any other matter which the City Council deems important to the management and preservation of historic resources in the city.
17.63.150 Heritage Librarian.
(A) The Heritage Librarian, or appointed designee, shall maintain records concerning all historic resources as listed on the Corona Register or Corona Heritage Inventory, information regarding any potential historic resources that are pending listing on the Corona Register or Corona Heritage Inventory and other available records, reports or studies concerning existing or demolished historic sites, improvements and natural features.
JAMIER\05000.20000\10288915.2
(B) The Heritage Librarian, or appointed designee, shall act in an advisory capacity to the Planning Director in regard to any pending listing of an historic resource on the Corona Register or Corona Heritage Inventory and any application for the expansion, deletion, reduction, alteration, modification or demolition of an historic resource listed on the Corona Register or Corona Heritage Inventory.
17.63.160 Corona Historic Preservation Society.
(A) The Corona Historic Preservation Society (Society) shall receive timely notice of applications submitted for the listing or deletion of historic resources on either the Corona Register or the Heritage Inventory. The Society may, at its discretion, provide comments to the Planning Department regarding such applications or otherwise act in a voluntary advisory capacity.
(B) The Society’s program for the identification and placement of historic markers shall not be subject to the provisions of this chapter.
17.63.170 Preservation incentives.
The City Council may establish preservation incentives to encourage owners to designate, maintain, preserve and improve historic resources. The incentives may include, but are not limited to, those set forth in the historic resources element of the General Plan. Only historic resources listed on the Corona Register shall be eligible to apply for preservation incentives.
17.63.180 Historic property preservation agreements.
Pursuant to Cal. Gov’t Code, Article 12, § 50280 (known as the Mills Act), the City Council may enter into a contractual agreement with the owner(s) of an historic property listed on the Corona Register, or the State or National Register of Historic Places, for the purpose of the preservation, rehabilitation and maintenance of a designated historic resource. The terms of a Historic Property Preservation Agreement allow the owner to receive a reduction in property taxes in exchange for the property owner’s commitment to specific restoration improvements and satisfactory maintenance of the Register property. The agreement shall include, but not be limited to, the contract provisions as required under state law and shall extend for a minimum period of ten years, renewed annually, until and unless a notice of non-renewal or cancellation is filed. The application process, review procedures and required contract provisions for Preservation Agreements shall be established by separate resolution of the City Council.
17.63.190 State Historical Building Code.
JAMIER\05000.20000\10288915.2
Pursuant to the State of California Health and Safety Code, the Building Official shall apply the State Historical Building Code in issuing any permit, entitlement or approval for any alteration of an historic resource for the purpose of preserving, rehabilitating, relocating or continuing use of the historic resource. The State Historic Building Code shall be applied as provided in this section to the extent it does not result in an unsafe condition, as determined by the Building Official.
17.63.200 Unsafe or dangerous conditions.
(A) Nothing in this chapter shall prevent the construction, alteration, repair, restoration, stabilization or demolition of an historic structure if the Building Official has determined the historic resource creates an unsafe or dangerous condition that is an immediate threat to public health or safety and the proposed action is necessary to mitigate the unsafe or dangerous condition.
(B) Prior to issuing a permit for any action authorized under this section, the Building Official shall make all reasonable efforts to consult with the Planning Director and Code Enforcement Compliance Division to determine if there are feasible alternatives to the proposed action that will adequately protect the public health and safety. (C) Nothing in this chapter shall prevent the trimming, alteration or removal of heritage trees listed in either the Corona Register or Heritage Inventory, if the city’s Landscape Resources Manager has determined that the preservation of the tree(s) will create an unsafe or dangerous condition that is a threat to public health or safety.
17.63.210 Public projects and improvements.
(A) Whenever any project, action or approval by the city may alter, relocate or demolish a landmark, historic district, heritage property or any other historic resource, the department responsible for the project, action or approval shall consult with the Planning Director as early in the process as possible to ensure conformance with the provisions and objectives of this chapter.
(B) Whenever a public project or improvement involves a resource or district listed on the Corona Register or Heritage Inventory, the improvement, repair or replacement shall be performed in such a manner as to be consistent with the historic context of the site and surrounding area. The improvements include, but are not limited to: the installation, repair and replacement of sidewalks, curb and gutter, street trees, streetlights, walls and fencing and any other such physical elements which are visible to the general public and can be considered a contributing resource to an historic property or district.
17.63.220 Duty to maintain and repair historic resources.
The owner(s) of property listed on the Corona Register or Corona Heritage Inventory, the owner(s) of property on which an historic resource is located or the owner(s) of
JAMIER\05000.20000\10288915.2
property within an historic district shall maintain and keep in good repair and shall prevent deterioration and decay of the historic resource or any portion of the site, improvements or natural features that contribute to the characteristic of the historic resource. The owner(s) of such property, or any other person responsible for the maintenance or repair of the property, shall avoid actions that create adverse impacts to adjacent properties and shall comply with all applicable codes, laws and regulations governing the maintenance and repair of property in the city, including those established by this chapter.
17.63.230 Violations and enforcement.
(A) Any person who violates this chapter, or who fails to comply with a condition of permit, entitlement or approval issued in accordance with this chapter, shall be guilty of a misdemeanor.
(B) Any person who alters, relocates or demolishes an historic resource in violation of this chapter shall be guilty of a misdemeanor and shall be required, at that person’s sole cost and expense, to restore the historic resource and any site, improvement, natural feature or portion thereof that contributes to the characteristics of the historic resource to its condition prior to such alteration, relocation or demolition.
DATE: 09/09/2024
TO: Honorable Chair and Commissioners
FROM: Planning and Development Department
2024-10
APPLICATION REQUEST:
ZTA2024-0003: Zone text amendment to Title 17 of the Corona Municipal Code amending Chapter 17.63, Historical Resources. (Applicant: City of Corona, 400 S. Vicentia Avenue, Corona, CA 92882)
RECOMMENDED ACTION:
That the Planning and Housing Commission recommend APPROVAL of ZTA2024-0003 to the City Council, based on the findings contained in the staff report.
BACKGROUND
Chapter 17.63 of the Corona Municipal Code (CMC) governs historic resources in the city.
The Historic Resources ordinance was adopted in 2001 and establishes definitions, criteria for listing properties on the city’s heritage inventory and local landmark register, criteria for deleting or reducing a listing on the heritage inventory or local landmark register, and criteria for the alteration, relocation or demolition of historic resources. The ordinance also covers other miscellaneous requirements associated with historic resources.
The City Council at its study session meeting on April 19, 2023, and March 20, 2024, discussed certain amendments to the Historic Resources ordinance which included adding a new historic resource category for a structure of merit and replacing the responsibilities delegated to the Planning Commission to a Historic Preservation Board. Most of the City Council agreed to the proposed changes and directed staff to prepare the appropriate amendment to the ordinance, which is the reason for ZTA2024-0003.
PROPOSED AMENDMENT
ZTA2024-0003 amends several sections of Chapter 17.63. The redline changes are shown in its entirety in Exhibit 1.
Noteworthy changes to the Historic Resources ordinance are described below. Section 17.63.020 Definitions. Definitions for California Historical Landmarks, Historic Artifacts, Historic Preservation Board and Structure of Merit were added.
Other definitions were also amended to commensurate with the changes being made to the ordinance.
Section 17.63.050 Corona Register – Landmark Listing Criteria. For a landmark to be listed on the local register, one of the criteria is for the age of the historic resource to be in existence for a period of 50 years. Rather than stipulating the number of years for a historic resource, this is being amended to identify an era. The amendment changes a property to be in existence before 1950, or if in existence after 1950, is of exceptional historical importance to the community. Section 17.63.065 Corona Register – Structures of Merit Listing Criteria. This is a new section being added to the Historic Resources ordinance. The structure of merit category is below the listing of a landmark but is worthy of being nominated to the local register because it includes physical elements that contribute to the city’s heritage and are worthy of preservation. A property identified as a structure of merit would be eligible for a Mills Act contract, which would allow the property owner to receive a reduced property tax in exchange for the maintenance and preservation of the property as a historic resource.
Historic Preservation Board. The ordinance delegates authority to the Planning Commission when it comes to reviewing local landmark nominations, adding or removing properties from the Heritage Inventory or Corona Register, and reviewing major alterations, relocation, or demolition of a historic resource on the Corona Register. Other duties of the Planning Commission include the review of any amendment to the Historic Resources Element of the General Plan, a recommendation to survey potential historic resources to be listed on the Corona Register or Heritage Inventory, and public outreach programs regarding the management and preservation of historic resources. The amendment is proposing a Historic Preservation Board to oversee these responsibilities instead of the Planning Commission. Title 2 of the CMC is being amended to add Chapter 2.38 establishing the Historic Preservation Board. This proposed chapter will be reviewed concurrently with ZTA2024-0003 by the City Council. Proposed Chapter 2.38 is provided as Exhibit 2 for reference but is not subject to review by ZTA2024-0003.
ENVIRONMENTAL ANALYSIS:
Per Section 15061(b)(3) of the State Guidelines for Implementing the California Environmental Quality Act (CEQA) and Section 3.06 of the City’s Local CEQA Guidelines, a Notice of Exemption has been prepared for the project because a project is exempt from CEQA if the activity is covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. The proposed amendment involves text revisions to the Historic Resources Ordinance in Chapter 17.63 of the CMC and will have no significant effect on the environment.
FISCAL IMPACT
ZTA2024-0003 is an application initiated by the city. Therefore, no application fees are associated with this request.
PUBLIC NOTICE AND COMMENTS
A 10-day public notice was advertised in the Sentinel Weekly News and posted on the city’s website. As of the preparation of this staff report, no comments have been submitted to the city.
STAFF ANALYSIS
ZTA2024-0003 updates the city’s Historic Resources ordinance and provides an additional avenue through the proposed structure of merit listing to encourage the preservation of historic resources. The amendment also adds new definitions and replaces the Planning Commission with a Historic Preservation Board that will focus on landmark nominations, and major alterations to historic landmarks, including the demolition of historic resources.
FINDINGS FOR APPROVAL OF ZTA2024-0003
1. Per Section 15061(b)(3) of the State Guidelines for Implementing the California Environmental Quality Act (CEQA) and Section 3.06 of the City’s Local CEQA Guidelines, a Notice of Exemption has been prepared for the project because a project is exempt from CEQA if the activity is covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. The proposed amendment involves text revisions to the Historic Resources Ordinance in Chapter
17.63 of the CMC and will have no significant effect on the environment.
2. ZTA2024-0003 is consistent with the General Plan for the following reason:
a. The Historic Resources Element of the General Plan has goals and policies related to the management of historical resources to help preserve historic structures and retain Corona’s heritage, which is the purpose of ZTA2024-0003.
3. ZTA2024-0003 is consistent with the intent of Title 17 of the Corona Municipal Code for the following reason:
a. Title 17 governs the development standards of land uses within the city and establishes other regulatory procedures described in the Zoning Code, which is consistent with ZTA2024-0003 because it will provide updated regulations and application processes for historic resources regulated by Chapter 17.63.
4. The proposed amendment will provide for the public health, safety, and welfare for the following reason:
a. ZTA2024-0003 establishes regulations for historic resources to promote the recognition, preservation and continued viability of historic resources in the city which supports cultural enhancement and the general welfare of the public.
PREPARED BY: JOANNE COLETTA, PLANNING AND DEVELOPMENT DIRECTOR Exhibits:
1. Proposed CMC Chapter 17.63 Redlined.
2. Proposed Chapter 2.38, Historic Preservation Board.
3. Environmental Documentation.
CHAPTER 17.63
HISTORIC RESOURCES
17.63.010 Purpose.
17.63.020 Definitions.
17.63.030 Applicability.
17.63.040 Corona Register – Establishment.
17.63.050 Corona Register – Landmark listing criteria.
17.63.060 Corona Register – Historic District listing criteria.
17.63.065 Corona Register – Structure of Merit listing criteria.
17.63.070 Corona Register – Historic marker listing criteria.
17.63.080 Corona Heritage Inventory – Establishment.
17.63.090 Corona Heritage Inventory – Heritage property listing criteria.
17.63.100 Listing or expanded listing – Application and procedures.
17.63.110 Deleted or reduced listing – Application and procedures.
17.63.120 Alteration, relocation or demolition of historic resources - Plan review and approval required.
17.63.130 Appeals.
17.63.140 Other duties of Planning CommissionHistoric Preservation Board.
17.63.150 Heritage Librarian.
17.63.160 Corona Historic Preservation Society.
17.63.170 Preservation incentives.
17.63.180 Historic property preservation agreements.
17.63.190 State Historic Building Code.
17.63.200 Unsafe or dangerous conditions.
17.63.210 Public projects and improvements.
17.63.220 Duty to maintain and repair historic resources.
17.63.230 Violations and Enforcement.
17.63.010 Purpose.
It is the purpose of this chapter to promote the recognition, preservation and continued viability of historic resources in the City of Corona in the interest of prosperity, social and cultural enrichment and the general welfare of the people of Corona, through the following principles:
(A) Encouraging knowledge and civic pride in the character of Corona’s heritage and its many historic resources, in accordance with the declaration of intent and purpose in the city’s General Plan;
(B) Providing a process and register for the public identification and official recognition of Corona’s many historic resources;
(C) Establishing processes for the thoughtful review of plans for future projects and developments that could affect the management and preservation of Corona’s historic resources;
(D) Encouraging and assisting Corona’s private property owners with the management and preservation of their own historic resources and properties; (E) Promoting the management and preservation of Corona’s historic resources, including historic districts, that reflect the city’s diverse cultural, social, artistic, economic, engineering, political and architectural heritage; (F) Enhancing Corona’s cultural heritage as a general attraction to residents, tourists, businesses, industries and development enterprises, thereby strengthening Corona’s general economy around its core heritage areas; (G) Promoting the use of Corona’s historic resources and districts for the education, enjoyment and welfare of the people of the city.
17.63.020 Definitions.
Whenever the following words or terms are used in this chapter, they shall have the meaning established by this section.
(A) "Alteration" means any change or modification, through public or private action, of an historic resource, including, but not limited to: exterior changes to or modifications of an improvement or site or any of its architectural details or visual characteristics, including paint color and surface texture, grading, surface paving, new structures, renovation or rehabilitation of structures, additions to structures or the removal of mature trees or other natural features; disturbances of archaeological or paleontological sites or areas; the placement or removal of any improvements or natural features such as signs, plaques, light fixtures, street furniture, walls, fences, steps, plantings or landscape accessories that affect the historic qualities of the property. (B) "Archaeological or paleontological site" means an area containing the remains or evidence of prehistoric humans or prehistoric human activities or an area containing
fossilized or preserved remains of plants or animals that generally predates the emergence of humans on the earth.
(C ) “California Historical Landmarks” means buildings, structures, sites, or places that have been determined to have statewide historical significance by meeting at least one of the following criteria: 1) the first, last, only, or most significant of its type in the state or within a large geographic region (Northern, Central, or Southern California), 2) associated with an individual or group having a profound influence on the history of California, or 3) a prototype of, or an outstanding example of, a period, style, architectural movement or construction or is one of the more notable works or the best surviving work in a region of a pioneer architect, designer or master builder. (CD) "California Register" means the California Register of Historic Resources as defined in Cal. Public Resources Code § 5020.1.
(DE) "Contributing historic resource” means a site, improvement or natural feature within a designated historic district, which adds to the historic qualities of the area, has a special character or aesthetic interest or value and has been identified on the Corona Register for that reason. Contributing historic resources include landmarks, heritage properties or historic resources listed on the California Register or National Register. (EF) "Corona Heritage Inventory" means the official listing of heritage properties and historic artifacts as adopted by the Planning CommissionHistoric Preservation Board pursuant to this chapter.
(FG) "Corona Register" means the official list of landmarks, and historic districts and all contributing historic resources within historic districts, and historic artifacts as adopted by the City Council pursuant to this chapter, and shall be officially known as the Corona Register of Historic Resources.
(GH) "Design guidelines" means the principles contained in a document approved by the city which describe and/or illustrate appropriate methods of rehabilitation, alteration or construction affecting historic resources. These guidelines are in addition to any other applicable design guidelines adopted by the city, whether by ordinance or by resolution, and the Secretary of the Interior’s Standards for Rehabilitation Projects. (HI) "Exterior architectural feature” means the architectural style, design, general arrangement, components and natural features and all the outer surfaces of an improvement, including, but not limited to, the type and texture of the building materials, the type and style of windows, doors, lights, signs, walls, fences and other fixtures appurtenant to the improvement.
(J) “Historic Artifact” means monuments, murals, markers or other such artifact that are part of Corona’s heritage and listed on the Corona Register. (IK) "Heritage property" means a site, historic artifact, improvement or natural feature listed on the Corona Heritage Inventory in accordance with the listing criteria set forth in § 17.63.090.
(JL) "Historic District" means a defined geographic area and all contributing historic resources within the area, listed on the Corona Register in accordance with the listing criteria set forth in § 17.63.060.
(KM) "Historic marker" means a sign, plaque, monument or other symbol, placed by either the City of Corona, the Corona Historic Preservation Society, Corona History Association, State office of Historic Preservation or National Park Service, for the purpose of recognizing one or more of the following:
(1) Events that have made a significant contribution to the history of Corona, the region, the state or the nation;
(2) Persons significant in Corona’s past;
(3) Examples of distinctive characteristics of a style, type, period or method of construction or a valuable example of the use of materials or craftsmanship; (4) Special elements of the city’s cultural, social, economic, political, aesthetic, engineering, architectural or natural history;
(5) The work of a notable builder, designer or architect; (6) Outstanding elements of architectural design, detail, materials or craftsmanship of a particular historic period;
(7) A unique location or physical characteristic representing an established and familiar visual feature of a neighborhood;
(8) An archeological or paleontological site; or
(9) A natural setting or feature that strongly contributes to the well being of the people of the city. The actual site, improvement or natural feature that is designated by the historic marker may or may not be listed, or may or may not be eligible for listing, on the Corona Register or the Corona Heritage Inventory.
(N) “Historic Preservation Board” means the Historic Preservation Board of the City of Corona established pursuant to Chapter 2.38
(LO) "Historic resource" means any structure of merit, landmark, historic district or contributing historic resource listed on the Corona Register, any heritage property listed on the Corona Heritage Inventory or any site, improvement or natural feature listed on the California Register or the National Register.
(MP) "Improvement" means any building, structure, structural work of art, parking facility, fence, gate, wall or other object constituting a physical betterment of real property or any part of such betterment.
(NQ) "Landmark" means a site, improvement or natural feature listed on the Corona Register in accordance with the listing criteria set forth in § 17.63.050. (OR) "Major alteration" means any alteration of an historic resource, which is not otherwise classified as a minor alteration.
(PS) "Minor alteration" means the alteration of an historic resource that does not conflict with the integrity of the historic resource and does not involve the addition of square footage or modification of an existing improvement or site exceeding 30% of the improvement or site area. Minor alterations include ordinary maintenance and repair, painting and re-roofing which are consistent with the architecture style and period of the historic resource.
(QT) "National Register" means the official federal list of historic resources as authorized by the National Historic Preservation Act of 1966, maintained by National Park Service under the United States Department of Interior and commonly known as the National Register of Historic Places.
(RU) "Natural feature" means any physical or ecological characteristic of a site, including any landscaping, plant life, natural object or scenic condition. (SV) "Ordinary maintenance" means any cleaning, painting and/or other restoration which does not result in the alteration of an improvement or landmark. (TW) "Person" means any individual, association, partnership, firm, corporation, public agency or political subdivision.
(UX) "Planning Commission" means the Planning Commission of the City of Corona established pursuant to Chapter 2.37.
.
(VY) "Planning Director" means the Planning Director of the City of Corona. (WZ) "Secretary of the Interior’s Standards for Rehabilitation" means the Secretary of the Interior’s Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings by the U.S. Department of the Interior or the National Park Service. (XAA) "Site" means any parcel or portion of real property, or any combination thereof, or any archaeological or paleontological site. (BB) “Structure of Merit” means a heritage property that does not meet the listing criteria for a landmark but represents Corona's heritage by having historic, cultural or architectural value worthy of preservation and is listed on the Corona Register in accordance with the listing criteria set forth in § 17.63.065. (YCC) "Survey" means the individual documentation of a site, improvement or natural feature for potential listing on the Corona Register or the Corona Heritage Inventory in accordance with the historic documentation standards of the State of California.
17.63.030 Applicability.
This chapter shall apply to all historic resources listed on the Corona Register of Historic Resources, the Corona Heritage Inventory, the California Register and the National Register.
17.63.040 Corona Register – Establishment.
(A) The City Council shall establish the Corona Register of Historic Resources. The intent of this section is to provide a local register comparable with the California Register and National Register, with similar criteria, definitions and considerations. (B) The Corona Register shall include structures of merit, historic artifacts, landmarks, historic markers and historic districts, and the contributing historic resources within such historic districts, as listed by the City Council in accordance with this chapter. Sites, improvements and natural features within the city’s boundaries that are listed on the California Register or the National Register or the California Historical Landmarks shall automatically be deemed listed on the Corona Register. (C) Historic resources listed on the Corona Register shall be eligible to apply for financial and other incentives established by the City Council that promote historic resource management and preservation in the city.
17.63.050 Corona Register – Landmark listing criteria.
(A) Landmarks are those physical elements of Corona’s historical development that exhibit exceptional historical, archeological, cultural, architectural, or artistic heritage that provide the community with its own unique civic identity and character. A site, improvement or natural feature shall be eligible for listing on the Corona Register as a landmark if the City Council finds that all of the following criteria are satisfied:
(1) It has been in existence for a period of at least 50 years prior to 1950, or if in existence after 1950 less than 50 years old, is of exceptional historical importance to the community;
(2) It has significant historic, cultural or architectural value and its designation as a landmark is reasonable, appropriate and necessary to promote, preserve and further the purposes and intent of this chapter;
(3) It exhibits one or more of the following characteristics:
(a) It is associated with events that have made a significant contribution to the history of Corona, the region, the state or the nation; (b) It is associated with the lives of persons significant in Corona’s past; (c) It embodies distinctive characteristics of a style, type, period or method of construction or a valuable example of the use of materials or craftsmanship; (d) It exemplifies or reflects special elements of the city’s cultural, social, economic, political, aesthetic, engineering, architectural or natural history; (e) It is representative of the work of a notable builder, designer or architect;
(f) It exemplifies one of the best remaining architectural styles or types in a neighborhood or contains outstanding elements of architectural design, detail, materials or craftsmanship of a particular historic period;
(g) It is in a unique location or contains physical characteristics representing an established and familiar visual feature of a neighborhood; (h) It is a potential source of archeological or paleontological interest; (i) It is or contains a natural setting or feature that strongly contributes to the well being of the people of the city;
(4) It has integrity of location, design, setting, materials, workmanship, feeling and association;
(a) Integrity is the authenticity of an historic resource’s physical identity, as evidenced by the survival of characteristics that existed during the historic resource’s period of significance, to be recognizable and to convey the reasons for its significance; (b) A site, improvement or natural feature that has diminished historic character or appearance may still have sufficient integrity for the Corona Register if it retains the potential to yield significant scientific or historical information or specific data or retains sufficient character to convey the reasons for its significance. Thus, it is possible that a site, improvement or natural feature may not retain sufficient integrity to meet the criteria for listing on the California Register or National Register, but it may still be eligible for listing on the Corona Register;
(c) Integrity shall be judged with reference to the particular criterion or criteria which provide its eligibility. An improvement removed from its original location shall be eligible if it is significant primarily for its architectural value or it is the surviving structure most importantly associated with an historic person or event. (CB) A reconstructed improvement shall be eligible if the reconstruction is historically accurate, the improvement is presented in a dignified manner as part of a restoration master plan and no other original improvement survives that has the same association. (DC) A site, improvement or natural feature that is intended to be primarily commemorative shall be eligible if its design, age, tradition or symbolic value creates its own historic significance. Examples include, but are not limited to, public statuary, murals, monuments, sculptures, graves and birthplaces. These sites or improvements may be identified by the placement of an historic marker.
17.63.060 Corona Register – Historic District listing criteria. (A) An historic district is a geographically defined area possessing a concentration of contributing historic resources that relate to each other and are unified by physical development or historical context.
(B) A defined area shall be eligible for listing on the Corona Register as an historic district if the City Council finds that all the following criteria are satisfied:
(1) The defined area is a unified geographical area with precisely defined boundaries;
(2) The defined area contains a significant concentration of individually recognized contributing historic resources united in character by an historic plan, physical development, cultural heritage, past events, an historic period or prehistory era, aesthetics design or architectural traditions;
(3) At least 75% of the contributing historic resources in the defined area are 50 years of age or older and retain their original architectural character; (4) The civic and historic value of the contributing historic resources is greater as a collective whole than as individual historic resources; (5) The defined area has significant historic, cultural or architectural value and its designation as an historic district promotes, preserves and furthers the purposes and intent of this chapter.
(C) Upon the listing of an historic district on the Corona Register, all identified contributing historic resources in the historic district shall be individually listed on the Corona Register, along with notation of the historic district’s noncontributing resources.
17.63.065 Corona Register – Structures of Merit listing criteria. (A) A structure of merit is a heritage property that does not meet the criteria identified for a landmark but includes physical elements that contribute to Corona’s heritage and are worthy of preservation.
(B) Heritage properties shall be eligible for listing on the Corona Register as a structure of merit if the City Council finds that one or more of the following criteria are satisfied:
(1) It is an example of a type of building or structure that was once common in Corona’s heritage but is now rare with most of the identifying features of the building or structure from the era preserved.
(2) It is connected with a business or use that was once common in Corona’s heritage but is now rare.
(3) It is a cultural resource that does not meet all the criteria for a landmark listing yet retains sufficient integrity to satisfy one or more criteria of a landmark listed in §17.63.050.
(4) It yields information or is likely to yield information important to Corona’s history or prehistory.
17.63.070 Corona Register – Historic marker listing criteria.
An historic marker, as defined by this chapter, may be listed on the Corona Register by resolution of the City Council.
17.63.080 Corona Heritage Inventory – Establishment.
The Planning Commission shall establish the Corona Heritage Inventory. The Corona Heritage Inventory shall include only heritage properties listed by the Planning Commission in accordance with this chapter and approved by the Historic Preservation Board. Heritage properties listed on the Corona Heritage Inventory may or may not be eligible for listing on the Corona Register.
17.63.090 Corona Heritage Inventory – Heritage property listing criteria.
A site, historic artifact, improvement or natural feature shall be eligible for listing on the Corona Heritage Inventory as a heritage property if the Planning CommissionHistoric Preservation Board finds that all the following criteria are satisfied:
(A) An official survey describing the features, merits and quality of the site, historic artifact, improvement or natural feature has been prepared; (B) The site, historic artifact, improvement or natural feature is identified as a potential resource to be conserved because of its age, and either its context in the neighborhood, its association with an historic event or period or its significance to the architectural, engineering, scientific, economic, agricultural, educational, cultural, social, artistic, political or military history of Corona.
17.63.100 Listing or expanded listing – Application and procedures. (A) General. An application to list or to expand the listing of a structure of merit, landmark,, historic district or heritage property may be initiated by the City Council, the Planning CommissionHistoric Preservation Board, city officials, local entities or a member of the public. An application "to expand the listing" is a request to enlarge, add to or otherwise augment the size, scale, scope, boundaries, characteristics, protections or definitions applicable to an existing structure of merit, landmark, historic district or heritage property.
(B) Contents. Applications shall be submitted to the Planning Department on forms prescribed by the Planning Director. The application shall include, but is not limited to, the following:
(1) The location or address of the proposed or expanded structure of merit, landmark, historic district or heritage property;
(2) The Assessor’s parcel number(s) of all properties on which the structure of merit, landmark, or heritage property is located, or if application is for an historic district, then the Assessor’s parcel number for all property within the boundaries of the proposed or expanded historic district;
(3) If the application is for a structure of merit, landmark, or historic district, then a legal description of all properties for which an Assessor’s parcel number is required;
(4) The name and address of the owner(s) of all property for which an Assessor’s parcel number is required, as shown on the latest assessment roll; (5) A full description of the proposed or expanded structure of merit, landmark, historic district or heritage property;
(6) Any other information deemed necessary by the Planning Director. (C) Additional information. Applications shall identify in sufficient detail how the proposed or expanded historic resource meets the applicable eligibility criteria set forth in this chapter: § 17.63.050 for landmarks, § 17.63.060 for historic districts, § 17.63.065 for structure of merit or § 17.63.080 for heritage properties. The application shall also be accompanied by an official survey describing the features, merits and quality of the proposed or expanded historic resource.
(D) Property owner consent required.
(1) If the application is for a landmark or structure of merit, then written and signed consent shall be obtained from all owner(s) of property on which the proposed or expanded landmark is located, as shown on the latest assessment roll; (2) If the application is for an historic district, then any written protest received must constitute less than 49% of the owner(s) of property located within the boundaries of the proposed or expanded historic district, as shown on the latest assessment roll. For purposes of determining a majority protest, each property is allocated one representative to register either consent or nonconsent to the inclusion of their property within the proposed or expanded historic district. Multiple owners of a property are collectively entitled one representative. Multiple adjacent parcels under common ownership are considered one property.
(3) The applicant is responsible for all costs associated with the notification to the respective property owners of the opportunity to register their concurrence or protest of the proposed district.
(E) Completed application. The Planning Director, or his or her designee, shall determine if an application is complete or incomplete within 30 days of receipt of the application. No permit, entitlement or other approval that would alter, relocate, demolish or otherwise negatively impact a proposed or expanded structure of merit, landmark, historic district or heritage property shall be issued while the application is pending. (F) Application notice and review.
(1) The Planning Director shall distribute copies of completed applications for review and comment to the Heritage Librarian, the Corona Historic Preservation Society and any other city department or outside agency that may be affected by a proposed listing or expansion.
(2) The owner(s) of property on which the proposed or expanded structure of merit, landmark, or heritage property is located, as shown on the latest assessment roll, shall be provided notice and a copy of the completed application.
(3) If application is for an historic district, then the owner(s) of property within the boundaries of the proposed or expanded historic district, as shown on the latest assessment roll, shall be provided notice and an explanation of the applicable protest procedures, in addition to a copy of the completed application. (4) The notice shall establish a period of no less than 30 days for review and comment on the application and any written comments or protests received within the review period shall be transmitted to the Planning CommissionHistoric Preservation Board as part of the staff report.
(G) Public hearing. Upon expiration of the review period, a public hearing shall be scheduled before the Planning CommissionHistoric Preservation Board, in accordance with the city’s standard procedures. Notice of the time, date, place and propose of the hearing shall be mailed to all persons who received notice of the application under § 17.63.090(F) and published in a local newspaper of general circulation no less than ten days prior to the hearing.
(H) Structure of merit, Llandmarks and historic districts – listing procedure. If an application is to list or expand the listing of a structure or merit, landmark or historic district on the Corona Register, then the following procedures shall apply:
(1) After reviewing the submitted materials and receiving any public comments on the application at the public hearing, the Planning CommissionHistoric Preservation Board shall consider and recommend approval or disapproval of the application to the City Council, based on the eligibility criteria set forth in either § 17.63.050 for landmarks, or § 17.63.060 for historic districts and § 17.63.065 for structure of merit; (2) The City Council shall hold a public hearing to consider the Planning CommissionHistoric Preservation Board’s recommendation and by resolution may approve or disapprove the application based on the eligibility criteria set forth in either § 17.63.050 for landmarks, or § 17.63.060 for historic districts and § 17.63.065 for structure of merit;
(3) Within 14 days of the City Council’s adoption of the resolution, the City Clerk shall mail notice of the decision and a copy of the resolution to all persons who received notice of the application under § 17.63.100(F). A copy of the resolution shall also be transmitted to all city departments;
(4) If the City Council approves the application, the resolution shall be recorded with the Riverside County Recorder on all property on which the approved or expanded landmark is located, structure of merit, or if the application is for an historic district, then all property within the boundaries of the approved or expanded historic district. (I) Heritage Inventory – listing procedure. If an application is to list or expand the listing of a heritage property on the Corona Heritage Inventory, then the following procedures shall apply:
(1) After reviewing the submitted materials and receiving any public comments on the application at the public hearing, the Planning CommissionHistoric Preservation
Board by resolution may approve or disapprove the application, based on the eligibility criteria set forth in § 17.63.090;
(2) Within 14 days of the Planning CommissionHistoric Preservation Board’s adoption of the resolution, the Planning CommissionHistoric Preservation Board Secretary shall mail notice of the decision and a copy of the resolution to all persons who received notice of the application under § 17.63.100(F). A copy of the resolution shall also be transmitted to all city departments.
17.63.110 Deleted or reduced listing – Application and procedures. (A) An application to delete or to reduce the listing of a structure of merit, landmark, historic district or heritage property may be initiated by the City Council, the Planning CommissionHistoric Preservation Board, city officials, local entities or a member of the public. An application "to reduce the listing" is a request to narrow, decrease or otherwise diminish the size, scale, scope, boundaries, characteristics, protections or definitions applicable to an existing structure of merit, landmark, historic district or heritage property. No application to delete or reduce the listing of an historic resource that is also listed on the California Register or National Register shall be accepted. (B) Applications shall be submitted to the Planning Department on forms prescribed by the Planning Director. The application shall include the same information as required under § 17.63.100(B), and the application shall identify in sufficient detail how the structure of merit, landmark, historic district or heritage property proposed for deletion or reduction meets the criteria set forth in this section. The Planning Department shall process, notice and review the application in accordance with the procedures set forth in §§ 17.63.100(D) through 17.63.100(G).
(C) If the application requests to delete or reduce the listing of a structure of merit, landmark or historic district, then the Planning CommissionHistoric Preservation Board shall consider and recommend, and the City Council shall approve or disapprove the application, in accordance with the procedures set forth in § 17.63.100(H), based on the criteria set forth in this section.
(D) If the application requests to delete or reduce the listing of a property on the Heritage Inventory, then the Planning CommissionHistoric Preservation Board shall consider and approve or disapprove the application in accordance with the procedures set forth in § 17.63.100(I), based on the criteria set forth in this section. (E) The listing of a structure of merit, landmark or historic district on the Corona Register, or the listing of a heritage property on Corona Heritage Inventory, may be deleted or reduced only if one of the following findings is made:. The Planning Department shall require the applicant to provide information justifying the request for deleting or reducing the listing of a historical resource. (1) The structure of merit, landmark or heritage property has been destroyed or demolished by natural means, or has been determined to be an unsafe structure by the Building Official;
(2) New information or analysis demonstrates the structure of merit, landmark, historic district or heritage property no longer conforms to any of the applicable eligibility criteria set forth in this chapter;
(3) There is clear and convincing evidence that the historic significance or value of the structure of merit, landmark, historic district or heritage property has significantly diminished.
(F) Within 14 days of the City Council’s or Planning CommissionHistoric Preservation Board’s adoption of the resolution, notice of the decision and a copy of the resolution shall be mailed to all persons who received notice of the application under this section.
A copy of the resolution shall also be transmitted to all city departments. (G) If an application to delete or reduce the listing of a structure of merit, landmark or historic district is approved, then a copy of the resolution shall be recorded with the Riverside County Recorder on all property on which the deleted or reduced structure of merit or landmark is located, or if an historic district is deleted or reduced, then all property within the boundaries of the deleted or reduced historic district.
17.63.120 Alteration, relocation or demolition of historic resources – Plan review and approval required.
(A) Prohibition. No person shall alter, relocate or demolish any historic resource, and no permit, entitlement or approval therefor shall be issued, without first submitting a plan for review and obtaining approval as set forth in this section. The required information and contents for the plan shall be established by the Planning Director. (B) Environmental review. Any plan that may cause a potentially adverse change to an historic resource listed on the Corona Register shall be reviewed in accordance with the city’s Local Guidelines for Implementing the California Environmental Quality Act (CEQA). Alterations, repairs, restoration and reconstruction consistent with the Secretary of Interior’s Standards for Rehabilitation are categorically exempt from CEQA pursuant to the state CEQA guidelines.
(C) General guidelines. Any plan involving the alteration of an historic resource shall be reviewed and approved, to the extent practical, in accordance with the cCity’s dDesign gGuidelines for hHistoric sStructures, or in the absence of such guidelines, the Secretary of the Interior’s Standards for Rehabilitation. The following principles shall be adhered to in the review and approval of such plans:
(1) The distinguishing original qualities or character of the historic resource shall not be compromised. The removal or alteration of any historic material or distinctive architectural features should be avoided when possible; (2) The colors, textures, materials, fenestration, decorative features and details, height, scale, massing and methods of construction proposed shall be consistent with the historic period and character-defining elements of the historic resource and compatible with adjacent structures.
(D) Structure of merit, Llandmarks, historic districts and other historic resources listed on the Corona Register.
(1) Any plan involving a major alteration to an historic resource listed on the Corona Register shall require review and approval by the Planning CommissionHistoric Preservation Board. The Planning CommissionHistoric Preservation Board may impose such conditions or restrictions as it deems necessary or appropriate to achieve the purposes of this chapter.
(2) Any plan involving a minor alteration to an historic resource listed on the Corona Register shall require review and approval by the Planning Director. The Planning Director may impose such conditions or restrictions as the Planning Director deems necessary or appropriate to achieve the purposes of this chapter. (3) Any plan involving a major alteration to a commercial, industrial, quasi-public, mixed use or multi-family development within the Downtown Revitalization Specific Plan (SP-98-01) that is listed on the Corona Register, shall require preliminary review by the Historic Preservation Board and shall require a Precise Plan application for review and approval by the Planning Commission, in accordance withpursuant to the provisions of SP-98-01;
(4) Any plan involving the relocation or demolition of a landmark, or an historic resource listed on both the Corona Register and the California Register or National Register, shall require a public hearing, review and approval recommendation by the Historic Preservation Board to the City Council by the City Council in accordance with the procedures set forth in § 17.63.100(H), except that any decision shall be based on the criteria set forth in § 17.63.110;
(5) Any plan involving the relocation or demolition of an historic resource listed on the Corona Register other than those set forth in the preceding subsection shall require public hearing, review and approval by the Planning CommissionHistoric Preservation Board in accordance with the procedures set forth in § 17.63.100(I), except that any decision shall be based on the criteria set forth in § 17.63.110; (6) Any plan involving the relocation or demolition of an historic resource listed on the Corona Register shall not be approved unless one of the following findings is made:.
The Planning Department shall require the applicant to provide information justifying the request for relocating or demolishing a historical resource listed on the Corona Register. (a) The criteria required to delete the historic resource from the Corona Register set forth in § 17.63.110(E) are satisfied;
(b) The historic resource has deteriorated or been modified to the extent that it is no longer representative as an historic resource to be preserved; (c) Denial of the requested relocation or demolition of the historic resource will deprive the owner of all economically viable use of the site; (d) Relocation or demolition of the historic resource will not have a significant effect on the achievement of the purposes of this chapter and appropriate mitigation
measures will be undertaken to substantially reduce or eliminate the loss or diminishment of the historic resource;
(e) The historic resource is determined to be unsafe or dangerous by the Building Official and reasonable efforts to correct the situation are economically or physically infeasible.
(E) Heritage properties.
(1) Any plan involving a major or minor alteration to a heritage property shall require review and approval by the Planning Director. The Planning Director may impose such conditions or restrictions as the Planning Director deems necessary or appropriate to achieve the purposes of this chapter.
(2) Any plan involving a major alteration to a commercial, industrial, quasi-public, mixed use or multi-family development within the Downtown Revitalization Specific Plan (SP-98-01) that is listed on the Corona Heritage Inventory shall require preliminary review by the Historic Preservation Board and shall require a Precise Plan application for review and approval by the Planning Commission, in accordance withpursuant to the provisions of SP-98-01.
(3) Any plan involving the relocation or demolition of a heritage property shall require review and approval by the Planning Director Historic Preservation Board. Upon receipt of the plan for relocation or demolition, the Planning Director shall notify the Corona Historic Preservation Society of the plan and provide a minimum 30 day waiting period from the date of the notice before taking action is taken by the Historic Preservation Board to approve or disapprove the plan.
(4) Any plan involving the relocation or demolition of a heritage property shall not be approved unless one of the following findings is made:. The Planning Department shall require the applicant to provide information justifying the request for relocating or demolishing a heritage property.
(a) The heritage property is not a good example of an historic period or architectural style;
(b) The heritage property has deteriorated or been modified to the extent that it is no longer representative as an historic resource to be preserved; (c) Denial of the requested relocation or demolition of the heritage property will deprive the owner of all economically viable use of the site; (d) Relocation or demolition or removal will not have a significant effect on the achievement of the purposes of this chapter;
(e) The heritage property is determined to be unsafe or dangerous by the Building Official and reasonable efforts to correct the situation are infeasible; (f) The heritage property is inconsistent with the zoning designation for the site and adaptive re-use of the heritage property to achieve consistency is not economically viable.
17.63.130 Appeals.
(A) Any decision made by the Planning CommissionHistoric Preservation Board, under the authority delegated to the Planning CommissionHistoric Preservation Board in this chapter, may be appealed pursuant to the limitations and procedures set forth in Chapter 17.93 of the code.
(B) Any decision made by the Planning Director, under the authority delegated to the Planning Director in this chapter, may be appealed pursuant to the limitations and procedures set forth in Chapter 17.95 of the code.
(C) All appeals brought under this section shall be accompanied by a filing fee established by the City Council.
17.63.140 Other duties of Planning CommissionHistoric Preservation Board. (A) The Planning CommissionHistoric Preservation Board shall consider and recommend to the Planning Commission City Council approval or disapproval of any proposed amendment to the Historic Resources Element of the General Plan or any other proposed amendment to the General Plan that could affect any historic resource listed on the Corona Register or the Corona Heritage Inventory. (B) The Planning CommissionHistoric Preservation Board may consider and recommend to the City Council programs for the comprehensive survey of potential historic resources, including potential landmarks and historic districts, for possible listing on the Corona Register or Corona Heritage Inventory and may recommend to the City Council programs to update annually, or as appropriate, the survey of historic resources in the city.
(C) The Planning CommissionHistoric Preservation Board may consider and recommend to the City Council programs to encourage public outreach, public appreciation and education regarding the management and preservation of historic resources.
(D) The Planning CommissionHistoric Preservation Board shall consider and make a recommendation to the City Council on any other matter which the City Council deems important to the management and preservation of historic resources in the city.
17.63.150 Heritage Librarian.
(A) The Heritage Librarian, or appointed designee, shall maintain records concerning all historic resources as listed on the Corona Register or Corona Heritage Inventory, information regarding any potential historic resources that are pending listing on the Corona Register or Corona Heritage Inventory and other available records, reports or studies concerning existing or demolished historic sites, improvements and natural features.
(B) The Heritage Librarian, or appointed designee, shall act in an advisory capacity to the Planning Director in regard to any pending listing of an historic resource on the Corona Register or Corona Heritage Inventory and any application for the expansion, deletion, reduction, alteration, modification or demolition of an historic resource listed on the Corona Register or Corona Heritage Inventory.
17.63.160 Corona Historic Preservation Society.
(A) The Corona Historic Preservation Society (Society) shall receive timely notice of applications submitted for the listing or deletion of historic resources on either the Corona Register or the Heritage Inventory. The Society may, at its discretion, provide comments to the Planning Department regarding such applications or otherwise act in a voluntary advisory capacity.
(B) The Society’s program for the identification and placement of historic markers shall not be subject to the provisions of this chapter.
17.63.170 Preservation incentives.
The City Council may establish preservation incentives to encourage owners to designate, maintain, preserve and improve historic resources. The incentives may include, but are not limited to, those set forth in the historic resources element of the General Plan. Only historic resources listed on the Corona Register shall be eligible to apply for preservation incentives.
17.63.180 Historic property preservation agreements.
Pursuant to Cal. Gov’t Code, Article 12, § 50280 (known as the Mills Act), the City Council may enter into a contractual agreement with the owner(s) of an historic property listed on the Corona Register, or the State or National Register of Historic Places, for the purpose of the preservation, rehabilitation and maintenance of a designated historic resource. The terms of a Historic Property Preservation Agreement allow the owner to receive a reduction in property taxes in exchange for the property owner’s commitment to specific restoration improvements and satisfactory maintenance of the Register property. The agreement shall include, but not be limited to, the contract provisions as required under state law and shall extend for a minimum period of ten years, renewed annually, until and unless a notice of non-renewal or cancellation is filed. The application process, review procedures and required contract provisions for Preservation Agreements shall be established by separate resolution of the City Council.
17.63.190 State Historical Building Code.
Pursuant to the State of California Health and Safety Code, the Building Official shall apply the State Historical Building Code in issuing any permit, entitlement or approval for any alteration of an historic resource for the purpose of preserving, rehabilitating, relocating or continuing use of the historic resource. The State Historic Building Code shall be applied as provided in this section to the extent it does not result in an unsafe condition, as determined by the Building Official.
17.63.200 Unsafe or dangerous conditions.
(A) Nothing in this chapter shall prevent the construction, alteration, repair, restoration, stabilization or demolition of an historic structure if the Building Official has determined the historic resource creates an unsafe or dangerous condition that is an immediate threat to public health or safety and the proposed action is necessary to mitigate the unsafe or dangerous condition.
(B) Prior to issuing a permit for any action authorized under this section, the Building Official shall make all reasonable efforts to consult with the Planning Director and Code Enforcement Compliance Division to determine if there are feasible alternatives to the proposed action that will adequately protect the public health and safety. (C) Nothing in this chapter shall prevent the trimming, alteration or removal of heritage trees listed in either the Corona Register or Heritage Inventory, if the city’s Landscape Resources Manager has determined that the preservation of the tree(s) will create an unsafe or dangerous condition that is a threat to public health or safety.
17.63.210 Public projects and improvements.
(A) Whenever any project, action or approval by the city may alter, relocate or demolish a landmark, historic district, heritage property or any other historic resource, the department responsible for the project, action or approval shall consult with the Planning Director as early in the process as possible to ensure conformance with the provisions and objectives of this chapter.
(B) Whenever a public project or improvement involves a resource or district listed on the Corona Register or Heritage Inventory, the improvement, repair or replacement shall be performed in such a manner as to be consistent with the historic context of the site and surrounding area. The improvements include, but are not limited to: the installation, repair and replacement of sidewalks, curb and gutter, street trees, streetlights, walls and fencing and any other such physical elements which are visible to the general public and can be considered a contributing resource to an historic property or district.
17.63.220 Duty to maintain and repair historic resources.
The owner(s) of property listed on the Corona Register or Corona Heritage Inventory, the owner(s) of property on which an historic resource is located or the owner(s) of
property within an historic district shall maintain and keep in good repair and shall prevent deterioration and decay of the historic resource or any portion of the site, improvements or natural features that contribute to the characteristic of the historic resource. The owner(s) of such property, or any other person responsible for the maintenance or repair of the property, shall avoid actions that create adverse impacts to adjacent properties and shall comply with all applicable codes, laws and regulations governing the maintenance and repair of property in the city, including those established by this chapter.
17.63.230 Violations and enforcement.
(A) Any person who violates this chapter, or who fails to comply with a condition of permit, entitlement or approval issued in accordance with this chapter, shall be guilty of a misdemeanor.
(B) Any person who alters, relocates or demolishes an historic resource in violation of this chapter shall be guilty of a misdemeanor and shall be required, at that person’s sole cost and expense, to restore the historic resource and any site, improvement, natural feature or portion thereof that contributes to the characteristics of the historic resource to its condition prior to such alteration, relocation or demolition.
CHAPTER 2.38
HISTORIC PRESERVATION BOARD
Sections
2.38.010 Establishment.
2.38.020 Members - Qualifications.
2.38.030 Terms of office.
2.38.040 Organization.
2.38.050 Stipend.
2.38.060 Duties.
2.38.010 Establishment.
There is established a Historic Preservation Board for the City of Corona.
2.38.020 Members – Composition and qualifications.
(A) The Historic Preservation Board shall consist of five members selected and appointed by City Councilmembers pursuant to state and local law. (B) Board members shall be residents of the city at the time of their appointment, and continuously during their incumbency.
(C) Board members shall demonstrate competence, interest, or knowledge of historic preservation.
2.38.030 Terms of office.
(A) Board members shall be appointed for a term of four years. (B) The term of office for each Board member is subject to the provisions of Chapter
2.35. (C) The City Council may, by majority vote, remove any Board member at any time without cause.
2.38.040 Organization.
(A) The Board shall hold at least one meeting annually. (B) The Board shall appoint the Chair from among its members annually and appoint a Vice-Chair to preside in the absence of the Chair.
(C) The Board may adopt all necessary by-laws, rules and regulations for the conduct of its meetings.
(D) If the Board is not able to maintain a quorum after the scheduling of two consecutive meetings to perform the duties set forth in this chapter, the duties shall be performed by the Planning Commission.
2.38.050 Stipend.
Each member of the Board shall receive $50 for each regular meeting attended, not to exceed $100 per month.
2.38.060 Duties.
The Board shall have the following powers and duties:
(A) To perform the duties and functions prescribed by Chapter 17.63., (B) To perform any other powers and duties prescribed by the City Council that are not inconsistent with any state or local law.
Notice of Exemption FORM “A”
NOTICE OF EXEMPTION
TO:
☒ Office of Planning and Research
P. O. Box 3044, Room 113
Sacramento, CA 95812-3044
(Sent via [email protected])
FROM:
(Public
Agency)
Name: City of Corona, Planning &
Development Department
Address: 400 S. Vicentia Ave., Suite
120, Corona, CA 92882
Telephone: 951-736-2434
☒ Clerk of the Board of Supervisors
or
County Clerk (Include County name)
Address: 4080 Lemon Street, Riverside, CA
92501
1. Project Title: ZTA2024-0003
2. Project Applicant: City of Corona
3. Project Location – Identify street address and cross streets or attach a map showing project site
(preferably a USGS 15’ or 7 1/2’ topographical map
identified by quadrangle name):
City wide
4. (a) Project Location – City: Corona (b) Project Location – County: Riverside
5. Description of nature, purpose, and beneficiaries of Project:
Amendment to Chapter 17.63 of the Corona Municipal
Code amending certain regulations associated with
historic resources.
6. Name of Public Agency approving project: City of Corona
7. Name of Person or Agency undertaking the project,
including any person undertaking an activity that
receives financial assistance from the Public Agency
as part of the activity or the person receiving a lease, permit, license, certificate, or other entitlement of use from the Public Agency as part of the activity:
City of Corona
8. Exempt status: (check one)
(a) ☐ Ministerial project. (Pub. Resources Code § 21080(b)(1); State CEQA Guidelines § 15268)
(b) ☐ Not a project.
(c) ☐ Emergency Project. (Pub. Resources Code § 21080(b)(4); State CEQA Guidelines § 15269(b),(c))
Notice of Exemption FORM “A”
(d) ☐ Categorical Exemption.
State type and section number:
(e) ☐ Declared Emergency. (Pub. Resources Code § 21080(b)(3); State CEQA Guidelines § 15269(a))
(f) ☐ Statutory Exemption.
State Code section number:
(g) ☒ Other. Explanation: (Public Resources Code § 21080 (a); State CEQA Guidelines §15061(b)(3))
9. Reason why project was exempt: This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from
CEQA if the activity is covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. The proposed amendment involves text revisions to Chapter
17.63 of the CMC regarding certain regulations associated with historic resources and will have no significant effect on the environment.
10. Lead Agency Contact Person:
Telephone:
Joanne Coletta, Director
951-736-2434
11. If filed by applicant: Attach Preliminary Exemption Assessment (Form “A”) before filing.
12. Has a Notice of Exemption been filed by the public agency approving the project? Yes ☒ No ☐
13. Was a public hearing held by the Lead Agency to consider the exemption? Yes ☒ No ☐ If yes, the date of the public hearing was: Click to enter date ________________________________
Signature Date: Click to enter date
Sylvia Edwards
Name Title: City Clerk
☒ Signed by Lead Agency ☐ Signed by Applicant
Date Received for Filing: Click to enter date
(Clerk Stamp Here)
Authority cited: Sections 21083 and 21110, Public Resources Code.
Reference: Sections 21108, 21152, and 21152.1, Public Resources Code.
1 City of Corona
Planning & Housing Commission Minutes
Draft
Monday, September 9, 2024, 6:00 p.m.
Council Chambers
400 S. Vicentia Avenue
Corona, CA 92882
Commission Present: Matt Woody, Marie Vernon, Craig Siqueland, Sarah Longwell, Karen Alexander
_____________________________________________________________________
1. PLEDGE OF ALLEGIANCE
Commissioner Siqueland led the Pledge of Allegiance.
2. CALL TO ORDER
Chair Woody called the meeting to order.
3. MEETING MINUTES
3.1 MINUTES - August 26, 2024
A motion was made by Commissioner Longwell, seconded by Commissioner Siqueland, that these Minutes be approved, with a noted correction by Commissioner Longwell.
Moved by: Sarah Longwell
Seconded by: Craig Siqueland
Aye (4): Matt Woody, Marie Vernon, Craig Siqueland, and Sarah Longwell Abstain (1): Karen Alexander
Motion APPROVED (4 to 0)
4. CONSENT CALENDAR
None.
5. COMMUNICATIONS FROM THE PUBLIC
Dale Plouns, resident, addressed the Commission regarding the Planning Commission meeting of August 26, 2024. He also mentioned the lack of available parking spaces near the Council Chambers.
6. PUBLIC HEARINGS
2 6.1 ZTA2024-0003
Joanne Coletta, Planning and Development Director, presented the staff report and exhibits for ZTA2024-0003.
Commissioners had questions regarding the Mills Act Contract and the proposed changes to the Historic Resources Ordinance, including details of a new Structure of Merit Listing and the creation of a new Historic Preservation Board and its responsibilities. Ms. Coletta provided clarification.
Chair Woody opened the Public Hearing.
Richard Winn, member of the Corona Historic Preservation Society, addressed the Commission to thank Ms. Coletta and to speak in favor of the proposed amendment.
Joe Morgan, resident, had a question about future items that would be reviewed by a new board; and he spoke in favor of this amendment.
Chair Woody closed the public hearing.
A majority of the commissioners expressed support for the structure of a new Historic Preservation Board. Commissioner Longwell expressed reservations for needing a new historic board.
Moved by: Karen Alexander
Seconded by: Marie Vernon
That the Planning and Housing Commission recommend APPROVAL of ZTA2024-0003 to the City Council, based on the findings contained in the staff report.
Aye (4): Matt Woody, Marie Vernon, Craig Siqueland, and Karen Alexander Nay (1): Sarah Longwell
Motion APPROVED (4 to 1)
7. WRITTEN COMMUNICATIONS
None.
8. ADMINISTRATIVE REPORTS
Ms. Coletta mentioned that a Specific Plan Amendment previously reviewed by the Planning Commission was approved without further review by the City Council on September 4, 2024.
9. COMMISSIONERS' REPORTS AND COMMENTS
None.
10. FUTURE AGENDA ITEMS
3 Future agenda items are scheduled for the Planning and Housing Commission meeting of September 23, 2024.
11. ADJOURNMENT
Chair Woody adjourned the meeting at 7:00 p.m. to the Planning and Housing Commission meeting of Monday, September 23, 2024, commencing at 6:00 p.m. in the City Hall Council Chambers.
DATE: 10/02/2024
TO: Honorable Mayor and City Council Members
Honorable President and Board Members
FROM: Utilities Department
2024-73
REQUEST FOR CITY COUNCIL AND
CORONA UTILITY AUTHORITY ACTION
SUBJECT:
RECEIVE AND FILE THE UTILITIES RATE STUDY ADMINISTRATIVE REPORT AS PREPARED BY ROBERT D. NIEHAUS, INC.
EXECUTIVE SUMMARY:
This staff report asks the City Council to receive and file the Utilities Rate Study administrative report as prepared by Robert D. Niehaus, Inc.
RECOMMENDED ACTION:
That the City Council receive and file the Utilities Rate Study administrative report.
That the Corona Utility Authority review, ratify, and to the extent necessary, direct that the City Council take the above actions.
BACKGROUND & HISTORY:
On April 3, 2024, City Council awarded Request for Proposals No. 24-051AS Utility Rate Study Project to Robert D. Niehaus, Inc. (RDN). On May 1, 2024, City Council received a presentation from RDN to clarify the policy objectives of City Council in preparing the Utilities Rate Study. On June 5, 2024, City Council received a presentation regarding the financial plans for the water, sewer, reclaimed water, and greenfield electric utilities and the anticipated shortfall in revenues over the next five years. On July 3, 2024, City Council received a presentation outlining options for rates for water, sewer, reclaimed water, and
greenfield electric. On August 21, 2024, City Council received a presentation by staff that provided responses to prior City Council requests and questions.
ANALYSIS:
RDN has prepared the Utilities Rate Study Administrative Report including water, sewer, and reclaimed water, as well as greenfield electric. The rates provided in the Administrative Report have been previously presented to City Council for review. This staff report asks the City Council to receive and file this report as the administrative record on file to support the rate adjustments outlined in the report.
The Utilities Department will be mailing the Proposition 218 notice to all property owners and customers in the Utilities Department’s service area with the legally required information regarding the proposed rates and opportunities to provide feedback and protests.
The rates, as outlined in the Administrative Report, will be considered at a Public Hearing at the November 20, 2024, City Council meeting.
FINANCIAL IMPACT:
Approval of the recommended action will have no financial impact as it is merely a receive and file report.
ENVIRONMENTAL ANALYSIS:
This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the common sense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This action involves the receipt and file of an administrative report and there is no possibility this action will have a significant effect on the environment. Therefore, no environmental analysis is required.
PREPARED BY: KATIE HOCKETT, ASSISTANT DIRECTOR OF UTILITIES REVIEWED BY: TOM MOODY, DIRECTOR OF UTILITIES
ATTACHMENTS:
1. Exhibit 1 - Presentation
2. Exhibit 2 - 2024 Water, Reclaimed Water, and Sewer Rate Study
3. Exhibit 3 - 2024 Electric Greenfield Utility Rate Study
4. Exhibit 4 - Proposition 218 notice
Katie Hockett
Assistant Director of Utilities
2 City Council receive and file
Utilities Rate Study
Administrative Report as
prepared by RDN
• Council Workshop 1 (policy objectives) – May 1, 2024
• Council Workshop 2 (financial plan presentation) – June 5, 2024 • Council Workshop 3 (rate structure options) – July 3, 2024 • Council Workshop 4 (recommendations) – August 21, 2024 • Council Meeting to Receive Report – October 2, 2024
• Rate Hearing – November 20, 2024
• Second Reading – December 4, 2024
• Rate Implementation – January 1, 2025
4 Meter Size
Current
Rate FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
5/8" $27.09 $32.79 $35.75 $38.96 $42.47 $46.29
3/4" $36.46 $42.94 $46.80 $51.02 $55.61 $60.61
1" $55.18 $63.23 $68.92 $75.12 $81.88 $89.25
1 1/2" $101.98 $113.94 $124.20 $135.38 $147.56 $160.84
2" $158.13 $174.81 $190.54 $207.69 $226.38 $246.75
3" $335.95 $367.54 $400.62 $436.67 $475.97 $518.81
4" $598.02 $651.56 $710.20 $774.12 $843.79 $919.74
6" $1,505.89 $1,635.51 $1,782.70 $1,943.15 $2,118.03 $2,308.65 8" $2,629.02 $2,852.76 $3,109.51 $3,389.36 $3,694.40 $4,026.90 10" $3,939.33 $4,272.88 $4,567.44 $5,076.61 $5,533.51 $6,031.52 Tier
Current
Rate FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Tier 1 $1.93 $1.96 $2.13 $2.32 $2.53 $2.76
Tier 2 $2.77 $3.31 $3.60 $3.93 $4.28 $4.67
Tier 3 $5.48 $4.38 $4.77 $5.20 $5.67 $6.18
Tier 4 $9.12 $5.22 $5.69 $6.20 $6.76 $7.36
Tier 5 $13.59
Meter
Size
Current
Rate FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
5/8" $8.60 $12.64 $13.78 $15.02 $16.37 $17.84
3/4" $8.60 $12.64 $13.78 $15.02 $16.37 $17.84
1" $8.60 $12.64 $13.78 $15.02 $16.37 $17.84
1 1/2" $8.60 $13.33 $14.53 $15.84 $17.27 $18.82
2" $9.74 $14.91 $16.25 $17.71 $19.31 $21.05
3" $10.81 $17.63 $19.21 $20.94 $22.83 $24.88
4" $16.76 $27.38 $29.84 $32.53 $35.46 $38.65
6" $32.74 $44.20 $48.18 $52.51 $57.24 $62.39
8" $60.29 $69.50 $75.76 $82.57 $90.01 $98.11
10" $101.72 $104.57 $113.98 $124.24 $135.42 $147.61
Note: Hydrant and fireline consumption billed at Tier 4 variable
5 Meter Size
Current
Rate FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
5/8" $23.52 $26.64 $27.70 $28.81 $29.96 $31.16
3/4" $30.81 $35.95 $37.38 $38.88 $40.43 $42.05
1" $45.39 $54.57 $56.75 $59.02 $61.38 $63.84
1 1/2" $81.84 $101.12 $105.16 $109.37 $113.75 $118.30
2" $125.59 $156.98 $163.26 $169.79 $176.58 $183.65
3" $264.13 $333.88 $347.24 $361.13 $375.57 $390.60
4" $468.28 $594.58 $618.36 $643.10 $668.82 $695.57
6" $1,175.53 $1,497.70 $1,557.61 $1,619.91 $1,684.71 $1,752.10 8" $2,050.48 $2,614.96 $2,719.56 $2,828.34 $2,941.48 $3,059.14 10" $3,071.25 $3,918.44 $4,075.17 $4,238.18 $4,407.71 $4,584.02 Tier
Current
Rate FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Tier 1 $2.14 $2.37 $2.46 $2.56 $2.66 $2.77
Tier 2 $3.21 $2.60 $2.71 $2.82 $2.93 $3.05
Tier 3 $4.27
Tier 4 $6.41
6 Current
Residential FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Base charge
(All Connections) $45.60 $45.46 $50.01 $55.01 $60.51 $66.56 Variable charge
(non-residential >8 HCF) N/A $5.50 $6.05 $6.66 $7.32 $8.05
7 Current
Rate FY2025 FY2026 FY2027 FY2028 FY2029
Fixed Charge, $/month
Single Family:
$0.88
Multi-Family:
$0.67
$15.90 $16.54 $17.20 $17.89 $18.61
Energy $/kWh Tier 1 Baseline $0.11808 $0.10100 $0.10504 $0.10924 $0.11361 $0.11815 Energy $/kWh Tier 2 101-130% Baseline $0.13741 $0.11100 $0.11544 $0.12006 $0.12486 $0.12985 Energy $/kWh Tier 3 131-200% Baseline $0.22696
$0.21000 $0.21840 $0.22714 $0.23623 $0.24568
Energy $/kWh Tier 4 over 200% Baseline $0.32337
Public Benefits Charge $/kWh Incl. in rates $0.00378 $0.00405 $0.00419 $0.00433 $0.00448
8 •Proposition 218 notice mailed to all
property owners and customers •Protest letters accepted by mail or email [email protected]
•Rate information available online at
www.CoronaCA.gov/rates
•Community meetings •Rate Adoption Public Hearing
–
November 20, 2024
9 Date Time Location
Thursday, October 24th 6:30 p.m. Staybridge Suites @ Dos Lagos Saturday, November 2nd 2:00 p.m. Council Chambers @ City Hall Thursday, November 7th 11:00 a.m. Council Chambers @ City Hall Thursday November 7th 6:30 p.m. Council Chambers @ City Hall
• Council Workshop 1 (policy objectives) – May 1, 2024
• Council Workshop 2 (financial plan presentation) – June 5, 2024 • Council Workshop 3 (rate structure options) – July 3, 2024 • Council Workshop 4 (recommendations) – August 21, 2024 • Council Meeting to Receive Report – October 2, 2024
• Rate Hearing – November 20, 2024
• Second Reading – December 4, 2024
• Rate Implementation – January 1, 2025
11 City Council receive and file
Utilities Rate Study
Administrative Report as
prepared by RDN
CITY OF CORONA
2024 Water, Reclaimed Water, and
Sewer Rate Study
Final Report September 26, 2024
CITY OF CORONA
2024 WATER, RECLAIMED WATER, AND SEWER RATE
STUDY
DRAFT REPORT
Prepared for:
City of Corona
400 South Vicentia Avenue
Corona, CA 92882
Prepared by:
ROBERT D. NIEHAUS, INC.
140 East Carrillo Street
Santa Barbara, CA 93101
(805) 962-0611
RDN Project Number 366
September 26, 2024
Tom Moody
Director of Utilities
City of Corona
400 South Vicentia Ave.
Corona, CA 92882
Subject: 2024 Water, Reclaimed Water, and Sewer Rate Study Dear Mr. Moody,
Robert D. Niehaus, Inc. is pleased to provide this Financial Planning, Revenue Requirements, Cost of Service, and Rate Setting Analysis report to the City of Corona for its Water, Reclaimed Water, and Sewer services. This rate study includes a financial plan to determine the revenue requirements for the next five years and a comprehensive review of the City’s current rates based on the cost of service principles. This report outlines the approach, methodology, findings, and recommendations of the study. Each of the components of this study has enhanced the equitability of the rates we propose.
The proposed rates were developed utilizing the City’s customer usage data, billing records, accounting, operating and management records, capital plans, and reserve policies. Based on the Cityprovided data, key assumptions were made for the study using appropriate resources and our econometric and financial expertise. We are confident that the rates proposed in this report are costbased and are fully compliant with Proposition 218 and other legal requirements.
It has been an absolute pleasure and honor to work with your city. We thank you, Ms. Hockett, and all additional staff who helped complete this report.
Respectfully submitted,
Robert D. Niehaus, Ph.D. Sanjay Gaur M.S., M.P.A.
Managing Director/Principal Economist - RDN Project Manager - Water Resources Economics
i
City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study
TABLE OF CONTENTS
TABLE OF CONTENTS.............................................................................................................................. i LIST OF TABLES.......................................................................................................................................iv LIST OF FIGURES.....................................................................................................................................ix EXECUTIVE SUMMARY.............................................................................................................................1
1.1 Background...............................................................................................................................................1
1.2 Purpose of Study .....................................................................................................................................3
1.3 Rate Recommendations and Proposed Rates....................................................................................3 METHODOLOGY ......................................................................................................................................11
2.1 General Methodology........................................................................................................................... 11
2.2 Legal Considerations............................................................................................................................ 12
2.3 Key Assumptions .................................................................................................................................. 16 Escalation Factors ........................................................................................................................................ 16 Customer Growth.......................................................................................................................................... 18 Reserve Policy .............................................................................................................................................. 21 Equivalent Meter Size .................................................................................................................................. 22 Debt Service Coverage Ratios ................................................................................................................... 22 WATER UTILITY .......................................................................................................................................24
3.1 Financial Plan........................................................................................................................................ 24 Demand Projections ..................................................................................................................................... 24 Revenues ....................................................................................................................................................... 25 Operating and Maintenance (O&M) Expense .......................................................................................... 26 Other Obligations.......................................................................................................................................... 26 Capital Improvement Projects..................................................................................................................... 26 Debt Service and Coverage Ratios............................................................................................................ 27 Reserves ........................................................................................................................................................ 29 Financial Plan................................................................................................................................................ 31 Revenue Requirements ............................................................................................................................... 33
3.2 Cost of Service Analysis ...................................................................................................................... 34 Functionalization of Costs ........................................................................................................................... 34 Allocation to Units ......................................................................................................................................... 42 Allocation to Customer Classes.................................................................................................................. 45
3.3 Water Rate Design ............................................................................................................................... 47
ii
City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study Monthly Fixed Charge.................................................................................................................................. 48 Monthly Fire Fixed Charge.......................................................................................................................... 49 Variable Water Rates ................................................................................................................................... 51
3.4 Bill Impact Analysis............................................................................................................................... 56 RECLAIMED WATER UTILITY ................................................................................................................57
4.1 Financial Plan........................................................................................................................................ 57 Demand Projections ..................................................................................................................................... 57 Revenues ....................................................................................................................................................... 58 Operating and Maintenance (O&M) Expense .......................................................................................... 59 Other Obligations.......................................................................................................................................... 59 Capital Improvement Projects..................................................................................................................... 59 Debt Service and Coverage Ratios............................................................................................................ 60 Reserves ........................................................................................................................................................ 61 Financial Plan................................................................................................................................................ 63 Revenue Requirements ............................................................................................................................... 65
4.2 Cost of Service Analysis ...................................................................................................................... 66 Functionalization of Costs ........................................................................................................................... 66 Allocation to Units ......................................................................................................................................... 74 Allocation to Customer Classes.................................................................................................................. 76
4.3 Reclaimed Water Rate Design ........................................................................................................... 78 Monthly Fixed Charge.................................................................................................................................. 79 Variable Reclaimed Water Rates ............................................................................................................... 80
4.4 Bill Impact Analysis............................................................................................................................... 82 SEWER UTILITY .......................................................................................................................................84
5.1 Financial Plan........................................................................................................................................ 84 Revenues ....................................................................................................................................................... 84 Operating and Maintenance (O&M) Expense .......................................................................................... 85 Other Obligations.......................................................................................................................................... 86 Capital Improvement Projects..................................................................................................................... 86 Debt Service and Coverage Ratios............................................................................................................ 87 Reserves ........................................................................................................................................................ 88 Financial Plan................................................................................................................................................ 90 Revenue Requirements ............................................................................................................................... 92
5.2 Cost of Service Analysis ...................................................................................................................... 93
iii
City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study Functionalization of Costs ........................................................................................................................... 93 Allocation to Units ......................................................................................................................................... 96
5.3 Rate Design........................................................................................................................................... 99 Sewer Rates .................................................................................................................................................. 99 CONCLUSION.........................................................................................................................................100
6.1 Summary of Recommendations and Financial Results................................................................ 100
6.2 Rate Impacts and Comparison ......................................................................................................... 117 APPENDIX...............................................................................................................................................121
iv
City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study
LIST OF TABLES
Table 1. Current Fixed Charges for All Retail Customers and Fire Protection Service Customers by Meter Size ............................................................................................................................................................................4 Table 2. Current Variable Water Rates for Residential and Non-Residential Customers by Tier.....................5 Table 3. Proposed Revenue Adjustments FY 2025 to FY 2029 ...............................................................................5 Table 4. Proposed Fixed Charges for All Retail Customers and Fire Protection Service Customers by Meter Size, FY 2025 to FY 2029.............................................................................................................................6 Table 5. Proposed Variable Water Rates for Residential and Non-Residential Customers by Tier, FY 2025 to FY 2029.................................................................................................................................................................6 Table 6. Current Reclaimed Water Fixed Rates .........................................................................................................7 Table 7. Current Reclaimed Water Variable Rates ....................................................................................................7 Table 8. Proposed Reclaimed Water Proposed Revenue Adjustments FY 2025 to FY 2029 .............................8 Table 9. Proposed Reclaimed Water Fixed Charges by Meter Size for FY 2025 to FY 2029 ..............................8 Table 10. Proposed Reclaimed Water Variable Rates by Tier for FY 2025 to FY 2029........................................8 Table 11. Current Sewer Fixed Charges......................................................................................................................9 Table 12. Proposed Revenue Adjustments FY 2025 to FY 2029 .............................................................................9 Table 13. Proposed Sewer Rates FY 2025 to FY 2029 ............................................................................................10 Table 14. Expense Escalation Factors ......................................................................................................................18 Table 15. Annual Meter and Fire Service Line Count FY 2024 to FY 2029 ..........................................................19 Table 16. Annual Meter Counts, FY 2024 to FY 2029 ..............................................................................................20 Table 17. Annual Sewer Customer Counts, FY 2024 to FY 2029...........................................................................21 Table 18. Water Reserve Policies and FY 2025 target ............................................................................................21 Table 19. Reclaimed Water Reserve Policies and FY 2025 target ........................................................................21 Table 20. Sewer Reserve Policies and FY 2025 target............................................................................................22 Table 21. AWWA Equivalent Meter and Fire Flow Ratios.......................................................................................22 Table 22. Annual Water Use by Customer Class in hcf, FY 2024 to FY 2029 .....................................................25
v
City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study Table 23. Annual Non-Operating Revenue by Source, FY 2024 to FY 2029........................................................25 Table 24. Water Utility Operating Forecast, FY 2024 to FY 2029 ..........................................................................26 Table 25. Operating Expenses by Expense Category, FY 2024 to FY 2029 ........................................................26 Table 26. Rate Study CIP Expenses by Expense Type, FY 2024 to FY 2029 ......................................................27 Table 27. Water Fund Debt Service Payments, FY 2024 to FY 2029.....................................................................28 Table 28. Water Debt Service Coverage Ratio Calculation, FY 2024 to FY 2029................................................28 Table 29. Water Reserve Target, FY 2024 to FY 2029 .............................................................................................29 Table 30. Status Quo Financial Pro Forma for City of Corona Water System, FY 2024 to FY 2029 ...............31 Table 31. Proposed Financial Pro Forma for City of Corona Water System, FY 2024 to FY 2029 ..................32 Table 32. Revenue Requirements for City of Corona Water Utility, FY 2024 ......................................................33 Table 33. Percentage of Operating Costs Allocated to Standard Functions ......................................................35 Table 34. Percentage of Non-operating Costs Allocated to Standard Functions..............................................35 Table 35. System-Wide Peaking Factors...................................................................................................................37 Table 36. Percent of Operating Function Categories Allocated to Cost Components .....................................38 Table 37. Total of Operating Functional Categories Allocated to Cost Components .......................................38 Table 38. Percent of Non-Operating Function Categories Allocated to Cost Components.............................38 Table 39. Total of Non-Operating Functional Categories Allocated to Cost Components ..............................39 Table 40. Operating and Non-Operating Cost Allocation to Cost Components ................................................39 Table 41. Rate Revenue Requirements for Test Year, FY 2024.............................................................................40 Table 42. Allocation of Fire Costs ..............................................................................................................................40 Table 43. Final Cost of Service Allocations with all Adjustments ........................................................................41 Table 44. Total Equivalent Meters Used for Cost Allocation .................................................................................42 Table 45. Total Use and Peak Values used for Cost Allocation ............................................................................43 Table 46. Tier Use and Peak Values used for Cost Allocation ..............................................................................43 Table 47. Estimated Fire Flow by Customer Class..................................................................................................44 Table 48. Cost of Service Units...................................................................................................................................44 Table 49. Rate Revenue Requirements Divided by the Corresponding Units....................................................45
vi
City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study Table 50. Unit of Service by Customer Class...........................................................................................................46 Table 51. Cost of Service by Customer Class..........................................................................................................46 Table 52. Allocation of Fixed and Variable Costs....................................................................................................48 Table 53. Fixed Cost Components Divided by Number of Units...........................................................................48 Table 54. Monthly Water Service Fixed Charge Calculation..................................................................................49 Table 55. Proposed 5-year Fixed Charge Schedule ................................................................................................49 Table 56. Fixed Cost Components Divided by Number of Units...........................................................................50 Table 57. Monthly Water Service Fixed Charge Calculation..................................................................................50 Table 58. Proposed 5-year Fixed Charge Schedule ................................................................................................51 Table 59. Available Water Supply and Costs............................................................................................................51 Table 60. Tier Width Allocations by Customer Class .............................................................................................54 Table 61. Water Source Unit Cost by Customer Class and Tier and Proposed Revenue Offset ....................54 Table 62. Variable Rate Costs and Components as Allocated to each Tier........................................................55 Table 63. Variable Rate Calculation ...........................................................................................................................55 Table 64. Proposed 5-Year Variable Rate Schedule................................................................................................56 Table 65. Annual Reclaimed Water Use by Customer Class in hcf, FY 2024 to FY 2029 .................................58 Table 66. Annual Non-Operating Revenue by Source, FY 2024 to FY 2029........................................................58 Table 67. Reclaimed Water Utility Operating Revenue Forecast, FY 2024 to FY 2029......................................58 Table 68. Operating Expenses by Expense Category, FY 2024 to FY 2029 ........................................................59 Table 69. Rate Study CIP Expenses by Expense Type, FY 2024 to FY 2029 ......................................................60 Table 70. Reclaimed Water Fund Debt Service Payments, FY 2024 to FY 2029.................................................60 Table 71. Reclaimed Water Debt Service Coverage Ratio Calculation, FY 2024 to FY 2029............................61 Table 72. Reclaimed Water Reserve Target, FY 2024 to FY 2029 .........................................................................62 Table 73. Status Quo Financial Pro Forma for City of Corona Reclaimed Water System, FY 2024 to FY 2029 ..................................................................................................................................................................................63 Table 74. Proposed Financial Pro Forma for City of Corona Reclaimed Water System, FY 2024 to FY 2029 ..................................................................................................................................................................................64
vii
City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study Table 75. Revenue Requirements for City of Corona Reclaimed Water Utility, FY 2024 ..................................65 Table 76. Percentage of Operating Costs Allocated to Standard Functions ......................................................67 Table 77. Percentage of Non-operating Costs Allocated to Standard Functions..............................................67 Table 78. System-Wide Peaking Factors...................................................................................................................68 Table 79. Percent of Operating Function Categories Allocated to Cost Components .....................................70 Table 80. Total of Operating Functional Categories Allocated to Cost Components .......................................70 Table 81. Percent of Non-Operating Function Categories Allocated to Cost Components.............................70 Table 82. Total of Non-Operating Functional Categories Allocated to Cost Components ..............................71 Table 83. Operating and Non-Operating Cost Allocation to Cost Components ................................................71 Table 84. Rate Revenue Requirements for Test Year, FY 2024.............................................................................72 Table 85. Final Cost of Service Allocations with all Adjustments ........................................................................73 Table 86. Total Equivalent Meters Used for Cost Allocation .................................................................................74 Table 87. Total Use and Peak Values used for Cost Allocation ............................................................................75 Table 88. Total Use and Peak Values used for Cost Allocation to Tiers by Percent.........................................75 Table 89. Cost of Service Units...................................................................................................................................75 Table 90. Rate Revenue Requirements Divided by the Corresponding Units....................................................76 Table 91. Unit of Service by Customer Class...........................................................................................................77 Table 92. Cost of Service by Customer Class..........................................................................................................77 Table 93. Allocation of Fixed and Variable Costs....................................................................................................78 Table 94. Fixed Cost Components Divided by Number of Units...........................................................................79 Table 95. Monthly Reclaimed Water Service Fixed Charge Calculation..............................................................79 Table 96. Proposed 5-year Fixed Charge Schedule ................................................................................................80 Table 97. Current and Proposed Reclaimed Water Tier Width Allocations ........................................................81 Table 98. Variable Rate Costs and Components as Allocated to each Tier........................................................82 Table 99. Variable Rate Calculation ...........................................................................................................................82 Table 100. Proposed 5-Year Variable Rate Schedule..............................................................................................82 Table 101. Sewer Customer Growth, FY 2024 to FY 2029 ......................................................................................84
viii
City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study Table 102. Annual Non-Operating Revenue by Source, FY 2024 to FY 2029......................................................85 Table 103. Sewer System Revenue Forecast, FY 2024 to FY 2029.......................................................................85 Table 104. Sewer System O&M Expense Forecast, FY 2024 to FY 2029 .............................................................85 Table 105. Rate Study Sewer CIP Expenses by Expense Type, FY 2024 to FY 2029 ........................................86 Table 106. Sewer Fund Debt Service Payments, FY 2024 to FY 2029..................................................................87 Table 107. Sewer Debt Service Coverage Ratio Calculation, FY 2024 to FY 2029.............................................87 Table 108. Sewer Reserve Target, FY 2024 to FY 2029...........................................................................................88 Table 109. Status Quo Financial Pro Forma for City of Corona Sewer System, FY 2024 to FY 2029.............90 Table 110. Proposed Financial Pro Forma for City of Corona Sewer System, FY 2024 to FY 2029 ...............91 Table 111. Revenue Requirements for City of Corona Sewer Utility, FY 2024 ...................................................92 Table 112. Percent of O&M Functional Categories Allocated ...............................................................................94 Table 113. Percent of O&M Functional Categories Allocated to Cost Components .........................................94 Table 114. Total of Operating Functional Categories Allocated to Cost Components.....................................95 Table 115. Percent of Asset Value Functional Categories Allocated...................................................................95 Table 116. Percent of Non-operating Functional Categories Allocated to Cost Components ........................95 Table 117. Total of Non-operating Functional Categories Allocated to Cost Components.............................95 Table 118. Revenue Requirement Cost Allocation by Cost Component.............................................................96 Table 119. Total Plant Sewer Flows ...........................................................................................................................96 Table 120. Residential Indoor Water Use Under Current Water Rates and Proposed Water Rates ...............97 Table 121. Cost of Service Units of Service .............................................................................................................97 Table 122. Cost of Service Unit Cost .........................................................................................................................98 Table 123. Average Residential Indoor Water Use ..................................................................................................98 Table 124. Sewer Rate Calculation.............................................................................................................................99 Table 125. Proposed Variable Sewer Rates FY 2025 to FY 2029...........................................................................99 Table 126. Proposed Potable Fixed Rates for FY 2025 to FY 2029.....................................................................105 Table 127. Proposed Potable Variable Rates for FY 2025 to FY 2029................................................................105 Table 128. Proposed Reclaimed Water Fixed Rates for FY 2025 to FY 2029....................................................110
ix
City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study Table 129. Proposed Reclaimed Water Variable Rates for FY 2025 to FY 2029 ...............................................111 Table 130. Proposed Sewer Rates Based on the Proposed Revenue Adjustment..........................................115
LIST OF FIGURES
Figure 1. City of Corona Boundary ..............................................................................................................................2 Figure 2. Water, Reclaimed Water, and Sewer Rate Study Process ....................................................................11 Figure 3. Annual Water Customer Growth FY 2024 to FY 2034 ............................................................................19 Figure 4. Annual Reclaimed Water Customer Growth FY 2024 to FY 2034 ........................................................20 Figure 5. Annual Aggregate Water Use, FY 2024 to FY 2034.................................................................................24 Figure 6. Rate Study CIP Expenses by Funding Source, FY 2024 to FY 2029....................................................27 Figure 7. Debt Service Coverage Ratio Under Current Rates, FY 2024 to FY 2029 ...........................................29 Figure 8. Water Cash Balances and Reserve Target with Current Rates, FY 2024 to FY 2029 .......................30 Figure 9. A Typical Flow for Cost of Service Analysis Process............................................................................34 Figure 10. Single Family Customer Impact by Usage for ¾” Meter .....................................................................56 Figure 11. Annual Aggregate Reclaimed Water Use in hcf, FY 2024 to FY 2034 ...............................................57 Figure 12. Rate Study CIP Expenses by Funding Source, FY 2024 to FY 2029 .................................................60 Figure 13. Debt Service Coverage Ratio Under Current Rates, FY 2024 to FY 2029.........................................61 Figure 14. Reclaimed Water Cash Balances and Reserve Target with Current Rates, FY 2024 to FY 2029 .62 Figure 15. A Typical Flow for Cost of Service Analysis Process .........................................................................66 Figure 16. Reclaimed Water Customer Impact by Usage for 1 1/2” Meter..........................................................83 Figure 17. Rate Study Sewer CIP Expenses by Funding Source, FY 2024 to FY 2029 .....................................86 Figure 18. Debt Service Coverage Ratio Under Current Rates, FY 2024 to FY 2029.........................................88 Figure 19. Sewer Cash Balances and Reserve Target With Current Rates, FY 2024 to FY 2029 ....................89 Figure 20. A Typical Flow for Cost of Service Analysis Process .........................................................................93 Figure 21. Rate Study Water Status Quo Financial Plan ......................................................................................101
x
City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study Figure 22. Ending Water Cash Balances with No Revenue Adjustment ...........................................................102 Figure 23. Recommended Water Revenue Adjustment........................................................................................103 Figure 24. Recommended Rate Study Adjusted Water Financial Plan..............................................................104 Figure 25. Recommended Ending Water Cash Balances with Revenue Adjustment .....................................106 Figure 26. Rate Study Reclaimed Water Status Quo Financial Plan..................................................................107 Figure 27 Ending Reclaimed Water Cash Balances with No Revenue Adjustment ........................................108 Figure 28. Recommended Reclaimed Water Revenue Adjustment....................................................................109 Figure 29. Recommended Rate Study Adjusted Reclaimed Water Financial Plan..........................................110 Figure 30. Recommended Ending Reclaimed Water Cash Balances with Revenue Adjustment .................111 Figure 31. Rate Study Sewer Status Quo Financial Plan .....................................................................................112 Figure 32. Ending Sewer Cash Balances with No Revenue Adjustment...........................................................113 Figure 33. Recommended Sewer Revenue Adjustment.......................................................................................114 Figure 34. Rate Study Adjusted Sewer Financial Plan .........................................................................................115 Figure 35. Recommended Ending Sewer Cash Balances with Revenue Adjustment.....................................116 Figure 36. Single Family Residential Combined Impacts for Water and Sewer...............................................117 Figure 37. Multi-Family Residential Combined Impacts for Water and Sewer (Four Units)...........................118 Figure 38. Non-Residential (Commercial) Combined Impacts for Water and Sewer (2” Meter)....................119 Figure 39. Neighboring Agencies Combined Bill Comparison ...........................................................................120
1 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study
EXECUTIVE SUMMARY
1.1 Background
The Water Division of the City of Corona (City) was founded in 1964 and subsequently became the Utilities Department (Department). The Department serves potable and reclaimed water to roughly 45,000 connections in its service area. The population served by the Department is approximately 165,000 residents over a service area covering 45 square miles. The City acquires its water supply from several sources, including local groundwater, regional desalted groundwater, imported water via Western Municipal Water District (WMWD), and reclaimed water produced at City-owned water reclamation facilities. The Department operates and maintains four water treatment facilities, 21 wells, 20 booster stations, and a distribution network consisting of 813 miles of water mains. On average, the City treats and serves approximately 30,000 acre-feet (AF) of water annually. The sewer system is made up of 448 sewer mains and treats approximately 11.5 million gallons of sewer per day. Figure 1 presents the limits of the City of Corona as well as the sphere of influence.
2 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study Figure 1. City of Corona Boundary
3 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study
1.2 Purpose of Study
The purpose of this analysis is to conduct a rate study which evaluates the City’s current utility rates and financial data and propose new rates for its Water, Reclaimed Water, and Sewer services, if necessary, to meet the City’s financial and strategic goals.
The primary objectives of this Study include:
• Projecting revenues and expenses for a ten-year study period • Proposing five-year revenue adjustments to fund the City’s projected financial needs • Proposing rates that aim to minimize the impact on customers • Producing an administrative record which effectively summarizes all findings • Supporting the City through the Proposition 218 process
1.3 Rate Recommendations and Proposed Rates
Water
• Adjusting rates annually by the recommended revenue adjustments of 9.0 percent per year • Increasing the proportion of revenue collected from fixed rates • Reducing the indoor allocation for residential customers from 55 gallons per capita per day (gpcd) to 47 gpcd
• Reducing the number of tiers for all customers by one Reclaimed Water
• Adjusting rates annually by the recommended revenue adjustments of 4.0 percent per year • Reducing the number of tiers for all customers to two Sewer
• Adjusting rates annually by the recommended revenue adjustments of 10.0 percent per year • Changing the rate structure to bill the same fixed charge for all customers • Introducing a variable charge for non-residential units for all water use over 8 hundred cubic feet (hcf) in a billing period
• Implementing a variance program for commercial customers whose water use does not equal their sewer flow
4 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study Current Water Rates
Currently, the City’s water customers pay a monthly fixed charge based on the customer’s meter size.
Additionally, customers with a dedicated private fire connection pay a monthly fee for their fire connection.
Customers also pay variable charges based on water use, which is billed per hundred cubic feet (hcf).
Residential (single family and muti-family residential) customers currently have a five-tiered rate design where higher use level categories are billed at a higher rate based on the increasing cost of water from different water sources. All other customers (non-residential) are billed variable charges based on a fourtier rate structure. The current rates as described are displayed in Table 1 and Table 2. Every customer with a variable charge has a unique water budget allocation. Water budget rates are designed to reflect efficient water use as determined by the State of California. The first tier for residential customers is based on efficient indoor use, currently set at 55 gallons per capita per day (gpcd). The default number of residents per household is four for single-family homes and two for multi-family homes. Residential tier 2 use is determined based on irrigable area and parcel size, and both tier 1 and tier 2 allocations are included in the total water budget. Non-residential tier 1 use is determined by a three-year average of each customer’s historical use patterns, which defines their water budget. Water use above each customer's water budget are billed at higher rates at an increment of 50 percent of the total budget. There are three tiers above each budget, where the highest tier accounts for all water use which exceeds 100 percent of the total water budget.
Table 1. Current Fixed Charges for All Retail Customers and Fire Protection Service Customers by Meter Size
Meter Size Retail Customers Fire Customers
5/8" $27.09 $8.60
3/4" $36.46 $8.60
1" $55.18 $8.60
1 1/2" $101.98 $8.60
2" $158.13 $9.74
3" $335.95 $10.81
4" $598.02 $16.76
6" $1,505.89 $32.74
8" $2,629.02 $60.29
10" $3,939.33 $101.72
Fixed Charges
5 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study Table 2. Current Variable Water Rates for Residential and Non-Residential Customers by Tier Customer Class Tier - Width Unit Cost
Residential Tier 1 - Indoor $1.93
Tier 2 - Outdoor $2.77
Tier 3 - 1%-50% Over Budget $5.48
Tier 4 - 51%-100% Over Budget $9.12
Tier 5 - All Additional hcf $13.59
Non-Residential Tier 1 - Efficient Water Use $2.77
Tier 2 - 1%-50% Over Budget $5.48
Tier 3 - 51%-100% Over Budget $9.12
Tier 4 - All Additional hcf $13.59
Variable Charges
Proposed Water Rates
RDN proposes the following rate and revenue adjustments to accomplish the City’s financial goals of capital and reserve funding as well as maintaining debt service coverage ratios. To achieve the proposed financial plan, RDN recommends that the City raise water revenues by 9.0 percent each year of the rate setting period which includes FY 2025 through FY 2029.
Table 3. Proposed Revenue Adjustments FY 2025 to FY 2029 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Recommended Adjustment 9.0% 9.0% 9.0% 9.0% 9.0%
Additionally, the City should implement a four-tiered rate structure for all residential customers. Tier widths for each residential customer should be updated to reflect upcoming changes to State legislation, which reduce the indoor water allocations of water budgets from 55 gpcd to 47 gpcd. RDN also recommends reducing the number of non-residential customer tiers from four to three. These adjustments will create a more equitable rate structure based on the actual cost of providing service to each customer while simplifying the overall rate design.
Costs were allocated equitably between all customers during the cost of service analysis. The rates for each meter size represent an equitable portion of the total cost of service for each class allocated the respective meter based on the calculations shown in the Cost of Service Analysis. The City will implement each fiscal year rate adjustments on January 1
st of the fiscal year. The proposed rates which result from these adjustments are shown in Table 4 and Table 5.
6 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study Table 4. Proposed Fixed Charges for All Retail Customers and Fire Protection Service Customers by Meter Size, FY 2025 to FY 2029
Customer Class FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Domestic
5/8" $32.79 $35.75 $38.96 $42.47 $46.29
3/4" $42.94 $46.80 $51.02 $55.61 $60.61
1" $63.23 $68.92 $75.12 $81.88 $89.25
1 1/2" $113.94 $124.20 $135.38 $147.56 $160.84
2" $174.81 $190.54 $207.69 $226.38 $246.75
3" $367.54 $400.62 $436.67 $475.97 $518.81
4" $651.56 $710.20 $774.12 $843.79 $919.74
6" $1,635.51 $1,782.70 $1,943.15 $2,118.03 $2,308.65
8" $2,852.76 $3,109.51 $3,389.36 $3,694.40 $4,026.90
10" $4,272.88 $4,657.44 $5,076.61 $5,533.51 $6,031.52
Fire Protection
5/8" $12.64 $13.78 $15.02 $16.37 $17.84
3/4" $12.64 $13.78 $15.02 $16.37 $17.84
1" $12.64 $13.78 $15.02 $16.37 $17.84
1 1/2" $13.33 $14.53 $15.84 $17.27 $18.82
2" $14.91 $16.25 $17.71 $19.31 $21.05
3" $17.63 $19.21 $20.94 $22.83 $24.88
4" $27.38 $29.84 $32.53 $35.46 $38.65
6" $44.20 $48.18 $52.51 $57.24 $62.39
8" $69.50 $75.76 $82.57 $90.01 $98.11
10" $104.57 $113.98 $124.24 $135.42 $147.61
Fixed Charges
Table 5. Proposed Variable Water Rates for Residential and Non-Residential Customers by Tier, FY 2025 to FY 2029
Note: that fire hydrant and private fire rates reflect the peaking and source water cost of peak water use, residential tier 4 Tier FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Residential
Tier 1 $1.96 $2.13 $2.32 $2.53 $2.76
Tier 2 $3.31 $3.60 $3.93 $4.28 $4.67
Tier 3 $4.38 $4.77 $5.20 $5.67 $6.18
Tier 4 $5.22 $5.69 $6.20 $6.76 $7.36
Non-Residential
Tier 1 $3.31 $3.60 $3.93 $4.28 $4.67
Tier 2 $4.38 $4.77 $5.20 $5.67 $6.18
Tier 3 $5.22 $5.69 $6.20 $6.76 $7.36
Variable Charges
7 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study Current Reclaimed Water Rates
Reclaimed water customers currently have the same basic rate structure as potable water customers, a fixed monthly charge and variable rates based on usage levels. Table 6 and Table 7 show the current rates for reclaimed water customers. Reclaimed water tiers were determined based on the water budget allocation methodology as described in the previous section.
Table 6. Current Reclaimed Water Fixed Rates
Meter Size Reclaimed
5/8" $23.52
3/4" $30.81
1" $45.39
1 1/2" $81.84
2" $125.59
3" $264.13
4" $468.28
6" $1,175.53
8" $2,050.48
10" $3,071.25
Fixed Charges
Table 7. Current Reclaimed Water Variable Rates
Customer Class Tier-Width Unit Cost
Reclaimed Tier 1 - Efficient Water Use $2.14
Tier 2 - 1%-50% Over Budget $3.21
Tier 3 - 51%-100% Over Budget $4.27
Tier 4 - All Additional hcf $6.41
Variable Charges
Proposed Reclaimed Water Rates
RDN proposes the following revenue adjustments to accomplish the City’s financial goals of capital and reserve funding as well as maintaining debt service coverage ratios. To maintain the proposed financial plan, the City should raise reclaimed water revenues by 4.0 percent each year of the study period. Table 8 shows the proposed reclaimed water variable rates for FY 2025 through FY 2029. Based on the cost of service analysis, it was determined that the City should reduce the number of variable rate tiers for reclaimed water customers from four to two. The first tier will be based on a customer’s outdoor water budget, and all use beyond that tier will be billed at the tier 2 rate. Reducing the number of tiers allows for better alignment of costs to each use level. Table 9 and Table 10 show the proposed reclaimed rates, with the annual revenue adjustments applied.
8 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study Table 8. Proposed Reclaimed Water Proposed Revenue Adjustments FY 2025 to FY 2029 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Revenue Adjustment 4.0% 4.0% 4.0% 4.0% 4.0%
Table 9. Proposed Reclaimed Water Fixed Charges by Meter Size for FY 2025 to FY 2029 Customer Class FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Reclaimed Water
5/8" $26.64 $27.70 $28.81 $29.96 $31.16
3/4" $35.95 $37.38 $38.88 $40.43 $42.05
1" $54.57 $56.75 $59.02 $61.38 $63.84
1 1/2" $101.12 $105.16 $109.37 $113.75 $118.30
2" $156.98 $163.26 $169.79 $176.58 $183.65
3" $333.88 $347.24 $361.13 $375.57 $390.60
4" $594.58 $618.36 $643.10 $668.82 $695.57
6" $1,497.70 $1,557.61 $1,619.91 $1,684.71 $1,752.10
8" $2,614.96 $2,719.56 $2,828.34 $2,941.48 $3,059.14
10" $3,918.44 $4,075.17 $4,238.18 $4,407.71 $4,584.02
Fixed Charges
Table 10. Proposed Reclaimed Water Variable Rates by Tier for FY 2025 to FY 2029 Tier FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Reclaimed Water
Tier 1 $2.37 $2.46 $2.56 $2.66 $2.77
Tier 2 $2.60 $2.71 $2.82 $2.93 $3.05
Variable Charges
Current Sewer Rates
Currently, the City’s sewer customers pay a fixed charge monthly based on their customer class. Each customer class pays a different fixed charge per billing type. Fixed charges generally increase for each meter size of commercial customer; however, some customers, such as special (restaurants, supermarkets, mortuaries, bakeries), hotels, and laundromats have their own unique fixed charges based on the estimated demand they place on the system (Table 11).
9 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study Table 11. Current Sewer Fixed Charges
Customer Class Monthly Fee
Inside Standard Sewer $45.60
Inside Commercial 5/8" $45.60
Inside Commercial 3/4" $72.02
Inside Commercial 1" $103.48
Inside Commercial 1 1/2" $186.06
Inside Commercial 2" $291.55
Inside Commercial 3" $537.41
Inside Commercial 4" $875.43
Inside Commercial 6" $1,753.50
Inside Commercial 8" $2,820.52
Special - Less than or equal to 1" Meter $163.28
Special - Larger than 1" Meter $266.34
Motels & Hotels $45.60
Laundries $24.20
Fixed Charges
Proposed Sewer Rates
The recommended sewer rates provide a revenue adjustment schedule designed to contribute to the City’s reserves, fund considerable capital expenditure needs, and allow the City to meet debt service coverage ratios. RDN, working with City staff, determined that an annual increase of 10.0 percent through the study period was necessary to maintain sewer fund balances. The proposed rates also revise the rate structure. Instead of a unique fixed charge based on customer class and water meter size, which ignores potential differences within a customer type, all customers will be billed the same fixed charge based on 8 hcf of water use in a billing period. Non-residential customers will incur a variable charge for sewer for water use above 8 hcf. The process used to determine equitable sewer rates is thoroughly described in the cost of service and rate design sections of this report. The proposed revenue adjustment and the proposed rates for FY 2025 – FY 2029 are shown in Table 12 and Table 13 respectively.
Table 12. Proposed Revenue Adjustments FY 2025 to FY 2029 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Recommended Adjustment 10.0% 10.0% 10.0% 10.0% 10.0% Page 321 of 633 10 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study Table 13. Proposed Sewer Rates FY 2025 to FY 2029
Base Charge FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
All Connections $45.46 $50.01 $55.01 $60.51 $66.56
Per hcf FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Non-Residential >8 hcf $5.50 $6.05 $6.66 $7.32 $8.05
Variable Charges
Fixed Charges
11 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study
METHODOLOGY
2.1 General Methodology
The water, reclaimed water, and sewer rates were developed using principles set forth by the American Water Works Association (AWWA) and the Water Environment Federation (WEF). RDN rate-making practices incorporate methods described in the AWWA Manual 1 (M1)1for Water Systems and the WEF Financing and Charges for Sewer Systems2 wherever possible. Figure 2 presents the steps taken to develop the City’s proposed rates.
Figure 2. Water, Reclaimed Water, and Sewer Rate Study Process • Growth Projection: project customer growth for the ten-year study period, FY 2025 through FY 2034, using the City’s historical customer growth data. Forecast revenues for the study period based on the projected customer growth.
• Financial Planning and Revenue Requirements: develop a ten-year financial plan based on the projected revenues and annual costs which include operating, debt service, and capital expenses.
The City’s target reserve level should also be considered as part of the financial planning. Based on the financial planning, revenue requirements are determined for each year of the study period. • Cost of Service: evaluate the customer classifications and allocate costs based on their service requirements.
• Rate Design: design rates to equitably recover the rate revenue requirements from each customer. 1 Principles of Water Rates, Fees, and Charges, Seventh Edition, Manual of Water Supply Practices, American Water Works Association
2 Financing and Charges for Sewer Systems, WEF Manual of Practice Number 27, Water Environment Federation Growth Projection
Financial Planning
and Revenue
Requirements
Cost of Service Rate Design
12 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study
2.2 Legal Considerations
This section describes the legal framework considered in the development of the recommended rates to ensure that the calculated cost of service rates provide a fair and equitable allocation of costs to each customer class.
California Constitution‐Article XIII C (Proposition 26) California voters approved Proposition 26 on November 2, 2010. Proposition 26 amended Article XIII C of the State Constitution to expand the definition of “tax” to include “any levy, charge, or exaction of any kind imposed by a local government” with listed exceptions. By means of these exceptions, Article XIII C classifies several types of charges, in addition to property-related charges, that are not taxes, such as charges for specific services or benefits, regulatory charges and penalties.
Article XIII C’s definition of “tax” lists the following exceptions: (1) a charge imposed for a specific benefit conferred or privilege granted directly to the payer that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege; (2) a charge imposed for a specific government service or product provided directly to the payer that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product; (3) a charge imposed for the reasonable regulatory costs to a local government for issuing licenses and permits, performing investigations, inspections, and audits, enforcing agricultural marketing orders, and the administrative enforcement and adjudication thereof; (4) a charge imposed for entrance to or use of local government property, or the purchase, rental, or lease of local government property; (5) a fine, penalty, or other monetary charge imposed by the judicial branch of government or a local government, as a result of a violation of law; (6) a charge imposed as a condition of property development; and (7) assessments and property-related fees imposed in accordance with the provisions of Article XIII D.
Proposition 26 also provides that the local government bears the burden of proving by a preponderance of the evidence that a levy, charge, or other exaction is not a tax, that the amount is no more than necessary to cover the reasonable costs of the governmental activity, and that the manner in which those costs are allocated to a payer bear a fair or reasonable relationship to the payer’s burdens on, or benefits received from, the governmental activity. Like the proportionality requirements of Article XIII D, assessment of rates under these requirements, if applicable, would be supported by the cost of service approach.
13 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study California Constitution‐Article XIII D, Section 6 (Proposition 218) In November 1996, California voters passed Proposition 218, the “Right to Vote on Taxes Act.” This constitutional amendment protects taxpayers by limiting the methods by which local governments can create or increase taxes, fees and charges without taxpayer consent. Between 2002 and 2017, California courts have ruled that fees associated with providing water services are “property-related” and thus under the jurisdiction of Prop 218. The principal requirements for fairness of the fees, as they relate to public water service, are as follows: Revenues derived from the fee or charge shall not exceed the funds required to provide the property related service. Revenues derived by the fee or charge shall not be used for any other purpose other than that for which the charge was imposed. The amount of the fee or charge imposed upon any parcel shall not exceed the proportional cost of service attributable to the parcel.
Reliance by an agency on any parcel map, including, but not limited to, an assessor’s parcel map, may be considered a significant factor in determining whether a fee or charge is imposed as an incident of property ownership for purposes of this article.
The rates developed in this report use a methodology to establish an equitable system of charges that recovers the cost of providing service and fairly apportions costs to each customer as required by Proposition 218.
California Constitution‐Article X, Section 2
Article X, Section 2 of the California Constitution (established in 1976) provides as follows:
“It is hereby declared that because of the conditions prevailing in this State the general welfare requires that the water resources of the State be put to beneficial use to the fullest extent of which they are capable, and that the waste or unreasonable use or unreasonable method of use of water be prevented, and that the conservation of such waters is to be exercised with a view to the reasonable and beneficial use thereof in the interest of the people and for the public welfare.” As such, public agencies are constitutionally mandated to maximize the beneficial use of water, prevent waste, and encourage efficiency which this Study achieves.
Assembly Bill-AB 2882
In 2008, the California Legislature adopted AB 2882, establishing a body of law entitled “Allocation‐Based Conservation Water Pricing.” AB 2882 is consistent with the above referenced constitutional provisions.
Water Code Section 370 provides in part as follows:
“The Legislature hereby finds and declares all of the following:
14 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study a. The use of allocation‐based conservation water pricing by public entities that sell and distribute water is one effective means by which waste or unreasonable use of water can be prevented and water can be saved in the interest of the people and for the public welfare, within the contemplation of Section 2 of Article X of the California Constitution. b. It is in the best interest of the people of California to encourage public entities to voluntarily use allocation‐based conservation water pricing, tailored to local needs and conditions, as a means of increasing efficient uses of water, and further discouraging wasteful or unreasonable use of water under both normal and dry‐year hydrologic conditions.” Water Code Section 372 provides as follows:
a. “A public entity may employ allocation‐based conservation water pricing that meets all of the following criteria.
(1) Billing is based on metered water use.
(2) A basic use allocation is established for each customer account that provides a reasonable amount of water for the customer’s needs and property characteristics. Factors used to determine the basic use allocation may include, but are not limited to the number of occupants, the type or classification of use, the size of lot or irrigated area, and the local climate data for the billing period. Nothing in this chapter prohibits a customer of the public entity from challenging whether the basic use allocation established for that customer’s account is reasonable under the circumstances. Nothing in this chapter is intended to permit public entities to limit the use of property through the establishment of a basic use allocation. (3) A basic charge is imposed for all water used within the customer’s basic use allocation, except that at the option of the public entity, a lower rate may be applied to any portion of the basic use allocation that the public entity has determined to represent superior or more than reasonable conservation efforts.
(4) A conservation charge shall be imposed on all increments of water use in excess of the basic use allocation. The increments may be fixed or may be determined on a percentage or any other basis, without limitation on the number of increments, or any requirement that the increments or conservation charges be sized, or ascend uniformly, or in a specified relationship. The volumetric prices for the lowest through the highest priced increments shall be established in an ascending relationship that is economically structured to encourage conservation and reduce the inefficient use of water, consistent with Section 2 of Article X of the California Constitution.
15 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study (1) Except as specified in subdivision
(a) The design of an allocation‐based conservation pricing rate structure shall be determined in the discretion of the public entity.
(2) The public entity may impose meter charges or other fixed charges to recover fixed costs of water service in addition to the allocation‐based conservation pricing rate structure. b. A public entity may use one or more allocation‐based conservation water pricing structures for any class of municipal or other service that the public entity provides.” Assembly Bill-AB 1668 and Senate Bill-SB 606
In 2018, the California Legislature adopted AB 1668 and SB 606, establishing a standard for indoor water use, long-term standards for efficient water use of commercial, industrial, and institutional customers, and penalties for customers who don’t comply with use restrictions. The bill establishes “55 gallons per capita daily as the standard for indoor residential water use” until January 1, 2025, “52.5 gallons per capita daily or a standard recommended by the department and the board as the standard for indoor residential water use” until January 1, 2030, and establishes “the greater of 50 gallons per capita daily or a standard recommended by the department and the board as the standard for indoor residential water use” thereafter. The bill also establishes principles for determining efficient outdoor water use. “’Principles of the model water efficient landscape ordinance’ means those provisions of the model water efficient landscape ordinance applicable to the establishment or determination of the amount of water necessary to efficiently irrigate both new and existing landscapes.
These provisions include, but are not limited to, all of the following:
(a) Evapotranspiration adjustment factors, as applicable. (b) Landscape area.
(c) Maximum applied water allowance.
(d) Reference evapotranspiration.
(e) Special landscape areas, including provisions governing evapotranspiration adjustment factors for different types of water used for irrigating the landscape.” “For landscape irrigated through dedicated or residential meters or connections, water efficiency equivalent to the standards of the Model Water Efficient Landscape Ordinance set forth in Chapter 2.7 (commencing with Section 490) of Division 2 of Title 23 of the California Code of Regulations, as in effect the later of the year of the landscape’s installation or 1992. An urban retail water supplier using the
16 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study approach specified in this subparagraph shall use satellite imagery, site visits, or other best available technology to develop an accurate estimate of landscaped areas.” As noted in the referenced statutes, an “Allocation‐Based Conservation Water Pricing Rate Structure” is a form of an increasing block rate structure where the amount of water within the first block or blocks is based on the estimated, efficient water needs of the individual customer, currently 55 gallons per day per person. Since it was originally introduced, the State has amended the language of the water budget statute to reduce indoor water budget targets from 52.5 gpcd to 47 gpcd3, the guideline used in this study.
This rate study, in conjunction with the City‘s findings and determinations for individual customers, establishes a water budget for each customer. Each water budget defines how much water is considered efficient. Customers who use water in excess of their water budget pay a higher rate for their “inefficient or wasteful” usage due to the fact that water use in excess of budgeted amounts incurs higher costs to the City.
2.3 Key Assumptions
A test year, FY 2024, was selected for which costs are to be analyzed and rates to be established for this study. The financial plan was built for the next ten years, including the five-year study period FY 2025 through FY 2029 with a detailed revenue adjustment plan. The cost of service rates are adjusted each year by the determined revenue adjustments based on the financial plan. The City’s fiscal year starts on July 1 and ends on June 30.
Escalation Factors
The financial plan was built based on an assumption in the projected escalation of revenues and expenses associated with both operations and maintenance (O&M) and capital improvement projects (CIPs). Bureau of Labor Statistics (BLS) Los Angeles-Long Beach-Anaheim Consumer Price Index (CPI), Federal Reserve Bank of St. Louis (FRED) Economic Research Division, Quarterly Census of Employment and Wages (QCEW), and Engineering News Record (ENR) Building Cost Index (BCI).
Escalation factors used in this study are shown in Table 14. The Los Angeles-Long Beach-Anaheim geography was chosen over the Riverside-San Bernardino-Ontario because of the longer timeframe of extant data. The Riverside-San Bernardino-Ontario data has only been published by the BLS since 2017 which makes a more volatile index because of the recent high level of inflation since 2020. The Los Angeles-Long Beach-Anaheim data, which previously included areas east of Los Angeles County, has many decades of data available and was determined to be more representative of the long-term inflation 3 Results of the Indoor Residential Water Use Study. A Report to the Legislature Prepared pursuant to Water Code Section 10609.4(b). August 2021. Department of Water Resources.
17 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study in the area. The overall escalation factor is derived solely from the All Items series of the BLS Los Angeles-Long Beach-Anaheim CPI. The All Items series represents a broad measure of the average change in prices over time for a wide array of goods and services. The market basket includes categories such as food and beverage, housing, apparel, transportation, medical, and other goods and services.
The Utilities escalation factor is derived from the Fuels and utilities and Energy series of the BLS Los Angeles-Long Beach-Anaheim CPI. RDN takes a weighted average of the Energy and Fuels and Utilities data sets to form a combined utilities inflation factor. This escalation factor accurately captures the costs associated with energy consumption and utility service.
The payroll escalation factor was provided by City Staff based on historical actual costs and unknown impacts of current employee bargaining unit negotiations.
The fuels and automobile escalation factor is derived from the Private Transportation, Fuels and Utilities, and Motor Fuel series of the BLS Los Angeles-Long Beach-Anaheim CPI. RDN takes a weighted average of the Private Transportation, Fuels and utilities, and Motor Fuel data sets to form a combined Fuels and Automobile inflation factor.
water purchase inflation is based on an average of published increases for the Western Municipal Water District.
The Construction escalation factor is derived using ENR’s BCI for the selected geography. ENR publishes a building cost index for Los Angeles, San Francisco, California, and the National level. RDN analyzed all four indices and, in coordination with staff, ultimately selected the index which best represents the building cost environment in the Agency, the Los Angeles BCI.
The property tax escalation factor is derived solely from the Housing series of the BLS Los Angeles-Long Beach-Anaheim CPI.
The insurance escalation factor is derived solely from the Federal Reserve Bank of St. Louis’ Producer Price Index for Premiums for Commercial Insurance. This index tracks the insurance costs for both liability and property coverage for businesses in the United States.
18 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study Table 14. Expense Escalation Factors
Category FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Payroll 8.0% 8.0% 8.0% 4.0% 4.0%
Other Employee 3.2% 3.2% 3.2% 3.2% 3.2%
Utilities 3.4% 3.4% 3.4% 3.4% 3.4%
Chemicals 5.3% 5.3% 5.3% 5.3% 5.3%
Water Treatment 5.0% 5.0% 5.0% 5.0% 5.0%
Fuel/Automobile 3.6% 3.6% 3.6% 3.6% 3.6%
Construction 5.9% 5.9% 5.9% 5.9% 4.0%
Insurance 3.4% 3.4% 3.4% 3.4% 3.4%
Overall 3.5% 3.5% 2.7% 2.7% 2.7%
Property Tax 4.9% 4.9% 4.9% 4.9% 4.9%
Water Purchase 7.6% 7.6% 7.6% 7.6% 7.6%
Customer Growth
All analyses assumed that there will be approximately 0.5 percent annual customer growth based on historical growth reported by City staff. Additionally, it was assumed that per account water use would remain stable over the study period.
Water
There are currently approximately 45,408 water meters connected to the City’s water system. In ten years, 47,712 meters are projected. A total of 1,136 new Water Service connections are projected to join the water system during the 5-year rate setting period, approximately 227 per year. Figure 3 shows the annual water customer growth for the study period. Table 15 shows the projected number of meters and fire service lines for all customer classes during the rate setting period.
19 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study Figure 3. Annual Water Customer Growth FY 2024 to FY 2034 45,408 45,631 45,856 46,085 46,314 46,544 46,776 47,009 47,242 47,476 47,712 -
10,000
20,000
30,000
40,000
50,000
60,000
FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 5/8" 3/4" 1" 1 1/2" 2" 3" 4" 6" 8" 10"
Table 15. Annual Meter and Fire Service Line Count FY 2024 to FY 2029 Meter Size FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 5/8" 5,534 5,561 5,589 5,618 5,647 5,676
3/4" 28,847 28,990 29,134 29,280 29,426 29,573
1" 7,106 7,141 7,176 7,211 7,247 7,283
1 1/2" 1,293 1,299 1,305 1,311 1,317 1,323
2" 1,247 1,253 1,259 1,265 1,271 1,277
3" 111 110 109 109 108 107
4" 161 162 163 164 165 166
6" 506 509 512 515 518 521
8" 492 494 496 498 500 502
10" 111 112 113 114 115 116
Total 45,408 45,631 45,856 46,085 46,314 46,544
Reclaimed Water
During the rate setting period, a total of 4 new reclaimed water meters are expected. Growth was projected for reclaimed water customers based on the 0.5 percent overall annual growth projected for
20 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study reclaimed water customer connections. Figure 4 shows reclaimed water customer growth between FY 2024 and FY 2034. Table 16 shows the projected number of meters during the rate setting period.
Figure 4. Annual Reclaimed Water Customer Growth FY 2024 to FY 2034 387 387 388 389 390 391 392 393 394 395 396
-
50 100
150
200
250
300
350
400
450
FY
2024
FY
2025
FY
2026
FY
2027
FY
2028
FY
2029
FY
2030
FY
2031
FY
2032
FY
2033
FY
2034
3/4" 1" 1 1/2" 2" 3" 4" 6" 8" 10"
Table 16. Annual Meter Counts, FY 2024 to FY 2029
Meter Size FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 5/8" - - - - - -
3/4" 16 16 16 16 16 16
1" 81 81 81 81 81 81
1 1/2" 169 169 170 171 172 173
2" 87 87 87 87 87 87
3" 12 12 12 12 12 12
4" 14 14 14 14 14 14
6" 6 6 6 6 6 6
8" 1 1 1 1 1 1
10" 1 1 1 1 1 1
Total 387 387 388 389 390 391
Sewer
During the 5-year study period, a total of 1,381 new sewer customer connections are expected. Growth was projected for sewer customers based on the 0.5 percent overall annual growth projected for sewer
21 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study customer connections. Table 17 shows the projected number of billing units from each customer class during the rate setting period.
Table 17. Annual Sewer Customer Counts, FY 2024 to FY 2029 Account Type FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Inside Standard Sewer 49,327 49,574 49,822 50,071 50,321 50,573 Inside Commercial
Commercial - 5/8" 142 143 144 145 146 147
Commercial - 3/4" 176 177 178 179 180 181
Commercial - 1" 566 569 572 575 578 581
Commercial - 1 1/2" 502 505 508 511 514 517
Commercial - 2" 536 539 542 545 548 551
Commercial - 3" 25 25 25 25 25 25
Commercial - 4" 10 10 10 10 10 10
Commercial - 6" 4 4 4 4 4 4
Commercial - 8" - - - - - -
Special
Special - Less than or equal to 1" 50 50 50 50 50 50
Special - Larger than 1" 94 94 94 94 94 94
Motels and Hotels
Motels and Hotels Accounts 24 24 24 24 24 24
Motels and Hotels Units 3,137 3,153 3,169 3,185 3,201 3,217 Laundries
Laundries Accounts 6 6 6 6 6 6
Laundries Machines 200 200 200 200 200 200
Reserve Policy
The City’s reserve policy includes reserves for each utility. The total water fund reserve target for FY 2025 is $23.1 million. The total reclaimed water fund reserve target is $1.7 million for FY 2025. The total sewer fund reserve target for FY 2025 is $13.2 million. Table 18, Table 19, and Table 20 show the reserve targets for the water, reclaimed water, and sewer utilities for FY 2025, respectively, as well as the reserve policy for each individual reserve.
Table 18. Water Reserve Policies and FY 2025 target
Reserve Policy FY 2025 Target
Operating Fund 3 Months Operating + Annual Depreciation $23,063,042 Table 19. Reclaimed Water Reserve Policies and FY 2025 target Reserve Policy FY 2025 Target
Operating Fund 3 Months Operating + Annual Depreciation $1,748,445 Page 333 of 633 22 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study Table 20. Sewer Reserve Policies and FY 2025 target
Reserve Policy FY 2025 Target
Operating Fund 3 Months Operating + Annual Depreciation $13,192,588 Equivalent Meter Size
When designing fixed monthly water service charges, the potential demand or capacity requirements placed on the water system can be measured by the size of installed meters which receive services from the system. The safe operating flow (or capacity) of a particular size of the meter is essentially the limiting factor in terms of the demand that can be exerted on the water system through the meter. The ratio of the safe operating capacity of various sizes of meters relative to the capacity of a base meter may be used to determine appropriate charges for the larger meter sizes4. The City considers 5/8” meters as the base meter capacity. Fire flow ratios are based on the size of the fire line running to those meters and potential fire flow through the line. The capacity ratio is calculated using the meter capacities in gallons per minute (gpm) provided in the AWWA M1 for meters larger than 5/8 inch. Table 21 shows the equivalent meter ratios used in this study for standard and fire flow meters.
Table 21. AWWA Equivalent Meter and Fire Flow Ratios
Meter Size Meter Ratio Fire Flow
5/8" 1.00 1.00
3/4" 1.50 1.00
1" 2.50 1.00
1 1/2" 5.00 2.90
2" 8.00 6.19
3" 17.50 17.98
4" 31.50 38.32
6" 80.00 111.31
8" 140.00 237.21
10" 210.00 426.58
12" 265.00 689.04
Debt Service Coverage Ratios
The City’s debt covenants require a certain ratio of net revenue in excess of operating expenses. Debt service coverage ratios are one of the main financial plan drivers of the revenue adjustments. When calculating debt service coverage requirements, the City must maintain a net revenue of 125 percent, or a 1.25 debt service coverage ratio (DSCR) to avoid facing technical default. For the purpose of this study, 4 From “Principles of Water Rates, Fees, and Charges” by American Water Works Association, 2017, Seventh Edition, Appendix B, p. 385.
23 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study leases were not included in the DSCR calculations as they have no specific coverage requirement but are shown as outstanding balances.
24 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study
WATER UTILITY
3.1 Financial Plan
RDN built a 10-year financial model for the water utility to meet the City’s long-term financial goals.
Demand Projections
Using historical billing records, RDN first derived aggregate usage levels to project water demand. Next, we calculated per account water usage for each customer by dividing the aggregate usage by the number of accounts. RDN assumed constant per account usage over the study period. This assumption was introduced to ensure that forecasted deviation in the wake of the Covid-19 pandemic is conservative.
Finally, the forecast number of accounts and per-account usage were multiplied to estimate aggregate use by customer class. Figure 5 shows the City’s total water demand projected for the next ten years.
Figure 5. Annual Aggregate Water Use, FY 2024 to FY 2034
11.48 11.54 11.59 11.65 11.70 11.76 11.82 11.87 11.93 11.99 12.04
0.00 2.00
4.00 6.00
8.00 10.00
12.00 14.00
FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 Million HCF Residential Single Family Residential Multi-Family Commercial Governmental Industrial Landscape
25 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study Table 22 shows the annual water use projection by customer class for the rate setting period.
Table 22. Annual Water Use by Customer Class in hcf, FY 2024 to FY 20295 Customer Class FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Residential Single Family 7,496,177 7,533,472 7,570,970 7,608,874 7,646,980 7,685,289 Residential Multi-Family 1,167,370 1,173,134 1,179,201 1,185,572 1,191,943 1,198,313 Commercial 1,048,820 1,054,265 1,059,710 1,065,155 1,070,600 1,076,045 Governmental 173,504 173,504 173,504 173,504 173,504 173,504 Industrial 368,250 369,960 371,670 373,380 375,091 376,801 Landscape 1,227,109 1,231,741 1,236,374 1,241,008 1,245,643 1,250,278 Total 11,481,230 11,536,076 11,591,430 11,647,493 11,703,759 11,760,229 Revenues
Based on the account growth and water demand projections, RDN forecasted revenues generated from customer rates using the current water rates for the study period, which total approximately $58.0 to $60.0 million annually. Other operating income and non-operating revenue are estimated to provide supplemental revenue each year. Table 23 shows the projected non-operating revenue for the water utility by source for FY 2024 to FY 2029.
Table 23. Annual Non-Operating Revenue by Source, FY 2024 to FY 2029 Non-Operating Revenue FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Interest On Investments $731,547 $746,178 $761,101 $776,324 $791,850 $807,687 Other Interest Income $137,455 $140,204 $143,008 $145,868 $148,785 $151,761 Services To Other Funds $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 Mwd-Local Resource Project $902,416 $0 $0 $0 $0 $0
Premium On Sale Of Bond $36,714 $0 $0 $0 $0 $0
Total $1,833,132 $911,382 $929,109 $947,191 $965,635 $984,448 The system’s total revenue for the study period is estimated to be approximately $62.0 to $62.9 million annually under the current rates. Table 24 shows the projected revenue flow for the study period (FY 2024 – FY 2029) without any revenue adjustments, projections are based on water use and customer growth projections as well as other operating and non-operating revenue estimates provided by City staff. 5 Use projections derived from historical monthly customer billing records provided by the City and trends in water use
26 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study Table 24. Water Utility Operating Forecast, FY 2024 to FY 2029 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Revenue from Rates
Fixed Charges $23,700,000 $24,192,076 $24,310,227 $24,429,579 $24,549,594 $24,670,046 Variable Charges $34,260,000 $34,280,275 $34,443,404 $34,608,493 $34,774,143 $34,940,353 Rate Revenue Total $57,960,000 $58,472,351 $58,753,631 $59,038,072 $59,323,736 $59,610,399 Other Operating Revenues $2,209,480 $2,235,687 $2,260,130 $2,285,423 $2,306,122 $2,327,389 Non-operating Revenues $1,833,132 $911,382 $929,109 $947,191 $965,635 $984,448 Total $62,002,612 $61,619,419 $61,942,870 $62,270,687 $62,595,493 $62,922,237 Operating and Maintenance (O&M) Expense
The water utility’s budget includes $55.0 million in operating expenses for FY 2024. Total operating expenses are expected to increase approximately 5.7 percent per year based on the application of specific inflation factors to each budget line item. By the end of the five-year rate setting period, total operating expenses are expected to reach $72.4 million. Table 25 shows projected operating expenses for the rate setting period by budget category.
Table 25. Operating Expenses by Expense Category, FY 2024 to FY 20296 Expense Category FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Development Service/Permitting $82,652 $91,417 $97,803 $104,669 $108,691 $112,868 Capital Improvements $878,921 $1,107,485 $1,180,980 $1,259,543 $1,307,247 $1,356,774 General Service $7,679,283 $8,068,523 $8,376,345 $8,647,193 $8,899,373 $9,159,024 Regulatory Compliance $1,069,313 $1,123,346 $1,168,350 $1,208,250 $1,243,655 $1,280,107 Operations $34,630,050 $37,038,990 $39,357,671 $41,809,170 $44,299,541 $46,954,434 Infrastructure Maintenance $3,912,150 $4,172,515 $4,368,113 $4,557,851 $4,718,324 $4,873,139 Facilities Maintenance $3,677,978 $4,000,803 $4,212,486 $4,426,305 $4,605,210 $4,766,733 Conservation $567,994 $637,951 $676,824 $717,551 $743,707 $770,811 Customer Care $2,513,710 $2,727,545 $2,853,388 $2,973,380 $3,068,087 $3,165,328 Total Operating $55,012,051 $58,968,574 $62,291,959 $65,703,913 $68,993,835 $72,439,218 Other Obligations
Other obligations included in the financial plan are capital improvement projects funded by rates known as PAYGO (Pay As You Go), debt service payments, and reserve contributions made from rates.
Capital Improvement Projects
The City plans to spend an average of $18.2 million a year on capital projects during the rate setting period. $3.2 million on average of the total expenditures per year will be funded by capacity fees and grants. During the 5-year rate setting period, City staff indicated the City is in the process of conducting 6 City staff provided current year operating expenses by category; projections are based on individual line-item inflationary factors shown in Table 14
27 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study a capacity fee study, so capacity fee funded CIP is not included in the rate analysis. Table 26 shows the City’s scheduled capital improvement projects for the next five years by funding source. Figure 6 graphically shows the capital plan by funding source, only PAYGO funded expenditure will impact customer rates.
Table 26. Rate Study CIP Expenses by Expense Type, FY 2024 to FY 20297 CIP Funding Source FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Rate Funded $10,000,000 $11,489,919 $16,045,506 $16,805,125 $17,213,900 $17,430,600 Capacity Fee $2,332,638 $150,000 $14,500,000 $0 $0 $0
Grant Funded $2,273,708 $0 $0 $0 $0 $0
Total CIP $14,606,347 $11,639,919 $30,545,506 $16,805,125 $17,213,900 $17,430,600 Figure 6. Rate Study CIP Expenses by Funding Source, FY 2024 to FY 2029 $0
$5
$10
$15
$20
$25
$30
$35
FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Millions
Rate Funded Capacity Fee (Developer) Grant Funded
Debt Service and Coverage Ratios
The City’s debt service schedule totals between $5.3 million and $5.6 million a year during the study period. Current debt obligations include rate refunded debt as well as capital leases. Table 27 shows the annual debt service payments which are allocated to the water fund. 7 City’s 10-year CIP budget as well as input from staff was used for project cost, project type, and funding source
28 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study Table 27. Water Fund Debt Service Payments, FY 2024 to FY 20298 Description FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Principal $2,585,736 $2,569,292 $2,700,067 $2,817,926 $2,946,626 $2,991,499 Interest $3,011,505 $3,067,405 $2,878,945 $2,690,018 $2,502,877 $2,309,703 Total Debt Service $5,597,241 $5,636,697 $5,579,011 $5,507,945 $5,449,503 $5,301,202 Table 28 shows the DSCR under the current finances detailed in the previous tables. Capital leases were removed from the DSCR calculation because they do not include a coverage requirement. To derive the DSCR, net revenue is divided by the total rate repaying debt service in each year.
Table 28. Water Debt Service Coverage Ratio Calculation, FY 2024 to FY 2029 Description FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Total Revenue $62,002,612 $61,619,419 $61,942,870 $62,270,687 $62,595,493 $62,922,237 Total Operating Expense $55,012,051 $58,968,574 $62,291,959 $65,703,913 $68,993,835 $72,439,218 Net Revenue $6,990,561 $2,650,845 ($349,089) ($3,433,226) ($6,398,341) ($9,516,981) Total Non-Lease Debt Service $3,398,915 $3,479,107 $3,542,931 $3,587,317 $3,634,265 $3,590,670 Debt Service Coverage Ratio 2.06 0.76 -0.10 -0.96 -1.76 -2.65 Under the current rates, the City will be in technical default beginning in FY 2025 as net revenues are not 125 percent greater than debt service payments. Figure 7 graphically shows the projected debt service coverage ratios based on the current financial plan.
8 City staff provided details of all current and planned debt service obligations
29 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study Figure 7. Debt Service Coverage Ratio Under Current Rates, FY 2024 to FY 2029 -3.00
-2.00
-1.00
0.00 1.00
2.00 3.00
FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Debt Service Coverage Ratio DSCR Requirement
Reserves
The City must maintain an appropriate reserve balance to ensure the day-to-day operation will continue during emergencies and guarantee the future stability of the system. The City’s financial goal is to build an appropriate level of cash reserves for each reserve fund included in the financial plan of this Study.
The reserve target for the water utility is described below:
• Operating Reserve: three months of operating expenses plus annual depreciation The reserve target at the end of the study period reaches $26.4 million. Table 29 shows the City’s reserve targets for FY 2024 through FY 2029 based on the current reserve policy. Figure 8 displays the resulting cash balances versus the reserve target under the current rates. Reserve targets based on reserve policy shown in Table 18 and operating, capital, and debt service totals shown in Tables 25, 26, and 27, respectively.
Table 29. Water Reserve Target, FY 2024 to FY 2029
Reserve Fund FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Operating Reserve $22,073,911 $23,063,042 $23,893,888 $24,746,876 $25,569,357 $26,430,703 Page 341 of 633 30 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study Figure 8. Water Cash Balances and Reserve Target with Current Rates, FY 2024 to FY 2029
31 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study Financial Plan
Based on the projected total revenue and necessary costs to be recovered during the study period, RDN built a financial plan that will generate sufficient revenues for the day-to-day operation and annual PAYGO and make appropriate contributions to reserves. The City currently has a projected ending cash balance of $34.4 million in FY 2024. Table 30 shows the status quo water pro forma with no revenue adjustments and the resulting ending balances based on the revenues and expenses outlined in this section.
Table 30. Status Quo Financial Pro Forma for City of Corona Water System, FY 2024 to FY 2029 Rate Increase 0.0% 0.0% 0.0% 0.0% 0.0%
Rate Month Implemented
FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Cash Position Opening Balance $ 43,004,670 $ 34,397,989 $ 19,922,218 $ (2,051,388) $ (27,797,684) $ (56,859,428) Revenues
Water Rate Revenue $ 57,960,000 $ 58,472,351 $ 58,753,631 $ 59,038,072 $ 59,323,736 $ 59,610,399 Adjusted Water Rate Revenue $ - $ - $ - $ - $ - $ -
Other Operating Revenue $ 2,209,480 $ 2,235,687 $ 2,260,130 $ 2,285,423 $ 2,306,122 $ 2,327,389 Non-Operating Revenue $ 1,833,132 $ 911,382 $ 929,109 $ 947,191 $ 965,635 $ 984,448 Total Revenues $ 62,002,612 $ 61,619,419 $ 61,942,870 $ 62,270,687 $ 62,595,493 $ 62,922,237 Operating Expenses $ 55,012,051 $ 58,968,574 $ 62,291,959 $ 65,703,913 $ 68,993,835 $ 72,439,218 Net Operating Revenues $ 6,990,561 $ 2,650,845 $ (349,089) $ (3,433,226) $ (6,398,341) $ (9,516,981) Current Rate Funded Debt Service $ 5,597,241 $ 5,636,697 $ 5,579,011 $ 5,507,945 $ 5,449,503 $ 5,301,202 New Debt Service $ - $ - $ - $ - $ - $ -
Total Rate Funded Debt Service $ 5,597,241 $ 5,636,697 $ 5,579,011 $ 5,507,945 $ 5,449,503 $ 5,301,202 Total Operating and Debt Service $ 60,609,292 $ 64,605,271 $ 67,870,971 $ 71,211,857 $ 74,443,337 $ 77,740,420 Total Operating and Debt Net Revenues $ 1,393,319 $ (2,985,852) $ (5,928,100) $ (8,941,170) $ (11,847,844) $ (14,818,184) Capital Expenditure $ 14,606,347 $ 11,639,919 $ 30,545,506 $ 16,805,125 $ 17,213,900 $ 17,430,600 Debt Proceeds Proposed $ - $ - $ - $ - $ - $ -
Debt Proceeds New $ - $ - $ - $ - $ - $ -
Capacity Fee $ 2,332,638 $ 150,000 $ 14,500,000 $ - $ - $ - Grants $ 2,273,708 $ - $ - $ - $ - $ -
Cash $ 10,000,000 $ 11,489,919 $ 16,045,506 $ 16,805,125 $ 17,213,900 $ 17,430,600 Net Income $ (8,606,681) $ (14,475,771) $ (21,973,606) $ (25,746,296) $ (29,061,744) $ (32,248,784) Ending Balance $ 34,397,989 $ 19,922,218 ($2,051,388) ($27,797,684) ($56,859,428) ($89,108,211)
32 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study Table 31 shows the proposed water pro forma for the study period with the recommended revenue adjustments per year. All revenue adjustments will occur in January of the Fiscal Year. The proposed financial plan also includes a $50 million debt issuance in FY 2026 which will allow the City to accomplish their long-term capital plan. This debt issuance has additional debt service payments and coverage requirements, which were included in the revenue adjustments.
Table 31. Proposed Financial Pro Forma for City of Corona Water System, FY 2024 to FY 2029 Rate Increase 9.0% 9.0% 9.0% 9.0% 9.0%
Rate Month Implemented 1-Jan 1-Jan 1-Jan 1-Jan 1-Jan
FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Cash Position Opening Balance $ 43,004,670 $ 34,397,989 $ 22,553,474 $ 58,749,560 $ 44,012,195 $ 32,657,270 Revenues
Water Rate Revenue $ 57,960,000 $ 58,472,351 $ 58,753,631 $ 59,038,072 $ 59,323,736 $ 59,610,399 Adjusted Water Rate Revenue $ - $ 2,631,256 $ 8,169,692 $ 14,261,502 $ 20,959,391 $ 28,321,067 Other Operating Revenue $ 2,209,480 $ 2,235,687 $ 2,260,130 $ 2,285,423 $ 2,306,122 $ 2,327,389 Non-Operating Revenue $ 1,833,132 $ 911,382 $ 929,109 $ 947,191 $ 965,635 $ 984,448 Total Revenues $ 62,002,612 $ 64,250,675 $ 70,112,563 $ 76,532,189 $ 83,554,884 $ 91,243,303 Operating Expenses $ 55,012,051 $ 58,968,574 $ 62,291,959 $ 65,703,913 $ 68,993,835 $ 72,439,218 Net Operating Revenues $ 6,990,561 $ 5,282,101 $ 7,820,603 $ 10,828,277 $ 14,561,050 $ 18,804,085 Current Rate Funded Debt Service $ 5,597,241 $ 5,636,697 $ 5,579,011 $ 5,507,945 $ 5,449,503 $ 5,301,202 New Debt Service $ - $ - $ - $ 3,252,572 $ 3,252,572 $ 3,252,572 Total Debt Service $ 5,597,241 $ 5,636,697 $ 5,579,011 $ 8,760,516 $ 8,702,075 $ 8,553,774 Total Operating and Debt Service $ 60,609,292 $ 64,605,271 $ 67,870,971 $ 74,464,429 $ 77,695,909 $ 80,992,992 Net Revenues $ 1,393,319 $ (354,596) $ 2,241,592 $ 2,067,760 $ 5,858,975 $ 10,250,311 Capital Expenditure $ 14,606,347 $ 11,639,919 $ 30,545,506 $ 16,805,125 $ 17,213,900 $ 17,430,600 Debt Proceeds Proposed $ - $ - $ - $ - $ - $ -
Debt Proceeds New $ - $ - $ 50,000,000 $ - $ - $ -
Capacity Fee $ 2,332,638 $ 150,000 $ 14,500,000 $ - $ - $ - Grants $ 2,273,708 $ - $ - $ - $ - $ -
Cash $ 10,000,000 $ 11,489,919 $ (33,954,494) $ 16,805,125 $ 17,213,900 $ 17,430,600 Net Income $ (8,606,681) $ (11,844,515) $ 36,196,086 $ (14,737,365) $ (11,354,925) $ (7,180,289) Ending Balance $ 34,397,989 $22,553,474 $ 58,749,560 $44,012,195 $32,657,270 $25,476,981
33 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study Revenue Requirements
Table 32 displays the water utility’s revenue requirements for FY 2024. In the rate design section, the proposed revenue adjustments will be applied to the cost of service-based rates which were designed considering the FY 2024 expenses. The total expense for each year is offset by other operating revenues and non-operating revenues to compute a pure portion of revenue requirements that need to be recovered from customers’ rates. RDN proposes annual revenue adjustments of 9.0 percent FY 2025 through FY 2029 to reach the financial goals set by the City.
Table 32. Revenue Requirements for City of Corona Water Utility, FY 2024 Revenue Requirements FY 2024
O&M Expenses $55,012,051
Debt Service $5,597,241
Capital Expenditures $10,000,000
Other Operating Revenue ($2,209,480)
Non-Operating Revenue ($1,833,132)
Net Balance From Operations ($8,606,681)
Rate Revenue Requirement $57,960,000
34 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study
3.2 Cost of Service Analysis
The purpose of a Cost of Service (COS) analysis is to allocate costs among customers commensurate with their service requirements. RDN employed the “base-extra capacity” cost-of-service method promulgated in AWWA’s M1, whereby costs are first allocated to individual functions, which are typical industry standard activities, then the costs of each function are distributed to appropriate cost causative components, which are defined by the cost driving elements. The results of the COS form a reasonable, equitable basis for designing rates. Figure 9 displays a typical process for the COS analysis.
Figure 9. A Typical Flow for Cost of Service Analysis Process Functionalization of Costs
Operating and capital costs are functionalized based on operating categories used in the City’s budget and input from City staff with expertise on the system and utility industry knowledge. The functionalization of capital expenses is based on total water asset values, which represents a better overall estimate of systemwide needs versus just one year of capital expenditure. The functions of the water system for both operating and capital expenses include:
• Water Supply – costs associated with water procurement and purchases • Pumping – costs associated with general pumping and energy use • Storage – costs associated with water storage for distribution • Treatment – costs associated with treating water
• Transmission and Distribution – costs associated with transmitting and distributing water to customers
• Hydrants – costs associated with the maintenance of fire hydrants • Customer – costs associated with customer service and billing related tasks Functionalization
The revenue requirement is
assigned to various industry
standard activities on a line-by -
line basis.
Allocation to Cost Causative
Components
The functional categories are
allocated to base, Max Day
Demand, Peak Hourly Demand,
customer billing and meter costs.
Reallocation to Customers via
Rates
Each cost component is tied to
fixed and volumetric rate
components.
35 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study • Meters – costs associated with the reading and maintenance of meters • Conservation – costs associated with the City’s conservation programs • Administrative and General – costs associated with administrative and general functions Costs and assets were functionalized based on industry standard budget determinations and input from staff. Table 33 shows the amount and percentage of test year operating expenses allocated to each function. Table 34 shows the amount and percentage of the City’s fixed assets allocated to each function.
Total assets were used as a proxy for the allocation of non-operating expenses because they represent the long-term investment in the system made by the City. A single year of non-operating expenses typically does not reflect an adequate ratio of overall system values.
Table 33. Percentage of Operating Costs Allocated to Standard Functions9 Category Allocation Percent
Total O&M $55,012,051 100.0%
Water Supply $19,940,381 36.2%
Transmission and Distribution $3,912,150 7.1%
Pumping $6,219,610 11.3%
Treatment $3,704,500 6.7%
Customer $2,513,710 4.6%
Conservation $567,994 1.0%
Administrative and General $18,153,706 33.0%
O&M Expense
Table 34. Percentage of Non-operating Costs Allocated to Standard Functions Category Allocation Percent
Total Assets $368,110,138 100.0%
Water Supply $3,949,211 1.1%
Groundwater $25,439,237 6.9%
Storage $35,010,321 9.5%
Transmission and Distribution $185,777,068 50.5%
Pumping $72,736,794 19.8%
Treatment $33,288,900 9.0%
Meters $2,510,674 0.7%
Hydrants $104,643 0.0%
Administrative and General $9,293,290 2.5%
Non-Operating Expense
A COS analysis considers both the average quantity of water consumed (base costs) and the peak rate at which it is consumed (peaking or capacity costs as identified by maximum day and maximum hour demands). Peaking costs are costs that are incurred during peak times of consumption. Title 22 of the 9 City staff provided allocations for all expenses and assets based on the standard categories shown
36 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study California Code of Regulations (CCR) requires the City of Corona to have enough source capacity to meet the Maximum Day Demand (MDD) at all times. There are additional costs associated with designing, constructing, operating, and maintaining facilities to meet peak demands. All current and future water facilities, including water mains, pump stations, reservoirs, wells, and treatment plants, are designed and constructed to meet peak demands. If deficiencies are found, the existing facilities get upsized, or a secondary line or pump is installed to meet the peaking demands. These peak demand costs should be allocated to those customers whose water usage patterns generate additional costs for the utility. In other words, not all customer classes and not all customers share the same responsibility for peaking related costs. For the system to provide adequate service to its customers at all times, it must be capable of meeting not only the annual volume requirements, but also the peak demand - the maximum rate at which water is consumed. Therefore, the capacities of the various facilities must meet the maximum coincidental demand of all customers.
Each water service facility within the system has an underlying average demand, exerted by the customers for whom the base cost component applies. For those facilities designed solely to meet average daily demand, 100% of the cost should go to the base cost component. Extra capacity requirements associated with demand in excess of average use consist of Max Day Demand and Peak Hourly Demand (PHD). Base demand and MDD demand were calculated based on historical customer usage for the most recent year that data was fully available, FY 2023. Base demand was calculated as the total demand divided by the number of days in a year. MDD was calculated by taking the highest use month, September, and dividing that by the number of days in the month, 30. Based on the MDD factor, RDN estimated the average hourly flow during the max day by multiplying it by a peaking factor of 1.5 (the lowest factor recommended by the State Board’s Division of Drinking Water10) to compute a PHD factor. Functions that require capacity to perform at base and MDD levels were allocated based on the ratio of base demand compared to MDD, or 72.4 percent and 27.6 percent, respectively. Additionally, the costs associated with the functions which require extra capacity service requirements were distributed to the base, MDD, and PHD cost components at 58.6 percent, 22.3 percent, and 19.1 percent, respectively.
Table 35 shows the systemwide peaking factors based on customer use patterns as described. 10 California Public Utilities Commission. Standard Practice for Determination of Water Supply Requirements, Standard Practice U-22. San Francisco. 2000
37 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study Table 35. System-Wide Peaking Factors
Factor Base Max Day Max Hour
Use 31,606 43,648 70,525
Base 1.00 100.0% 0.0% 0.0%
Max Day 1.38 72.4% 27.6% 0.0%
Max Hour 2.23 44.8% 17.1% 38.1%
Average Max Day/Max Hour 58.6% 22.3% 19.1%
The cost causative components include:
• Source of Supply – water purchase costs, groundwater procurement, pumping costs, etc. • Base – delivering water to customers under average demand conditions • Maximum Day Demand (MDD) – the costs of delivering water to customers on the day with the highest demand
• Peaking Hourly Demand (PHD) – the costs of delivering water to customers on the hour with the highest demand on highest day
• Meters – the costs of servicing and reading meters
• Fire Protection Service – the costs of providing water service for public and private fire protection services
• Customer Service – billing and other customer service-related costs • Conservation – the cost to administer the City’s conservation program Water supply costs are allocated 100 percent to the Supply component as they relate to purchasing water from other agencies as well as groundwater. Storage costs are proportionally allocated between Base and Max Day based on the maximum day allocation.
Transmission and distribution and Pumping costs are proportionally allocated between Base, Max Day, and Peak Hour based on the Average Max Day/Peak Hour costs. These costs are allocated based on the average maximum day and maximum hour because transmission infrastructure is constructed to meet maximum day demand and distribution pipelines are constructed to meet maximum hour demand plus fire flow.
Treatment-related costs are allocated to source of supply as treatment costs are incurred based on the available water supply. Administrative and general costs are allocated to cost components based on the percentage of the functions allocated to the other cost categories.
Table 36 through Table 39 show the percent and total value of functionalized operating costs and assets allocated to the cost causative components. Meter, fire protection, customer service, and conservation costs were allocated directly to their respective component.
38 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study Table 36. Percent of Operating Function Categories Allocated to Cost Components Category Total
Allocation
Source of
Supply Base MDD PHD Meters Fire Protection
Customer
Service Conservation
Water Supply $19,940,381 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Transmission and Distribution $3,912,150 0.0% 58.6% 22.3% 19.1% 0.0% 0.0% 0.0% 0.0% Pumping $6,219,610 0.0% 58.6% 22.3% 19.1% 0.0% 0.0% 0.0% 0.0% Treatment $3,704,500 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Customer $2,513,710 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% Conservation $567,994 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Administrative and General $18,153,706 0.0% 39.2% 14.9% 12.7% 0.0% 0.0% 27.0% 6.1% O&M Expense
Table 37. Total of Operating Functional Categories Allocated to Cost Components Category Total
Allocation
Source of
Supply Base MDD PHD Meters Fire
Protection
Customer
Service Conservation
Water Supply $19,940,381 $19,940,381 $0 $0 $0 $0 $0 $0 $0 Transmission and Distribution $3,912,150 $0 $2,293,009 $873,675 $745,466 $0 $0 $0 $0 Pumping $6,219,610 $0 $3,645,468 $1,388,985 $1,185,156 $0 $0 $0 $0 Treatment $3,704,500 $3,704,500 $0 $0 $0 $0 $0 $0 $0
Customer $2,513,710 $0 $0 $0 $0 $0 $0 $2,513,710 $0
Conservation $567,994 $0 $0 $0 $0 $0 $0 $0 $567,994
Administrative and General $18,153,706 $0 $7,114,990 $2,710,932 $2,313,112 $0 $0 $4,906,097 $1,108,574 Percent of Total 100.0% 43.0% 23.7% 9.0% 7.7% 0.0% 0.0% 13.5% 3.0% O&M Expense
Table 38. Percent of Non-Operating Function Categories Allocated to Cost Components Category Total
Allocation
Source of
Supply Base MDD PHD Meters Fire Protection
Customer
Service Conservation
Water Supply $3,949,211 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Groundwater $25,439,237 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Storage $35,010,321 0.0% 72.4% 27.6% 0.0% 0.0% 0.0% 0.0% 0.0% Transmission and Distribution $185,777,068 0.0% 58.6% 22.3% 19.1% 0.0% 0.0% 0.0% 0.0% Pumping $72,736,794 0.0% 58.6% 22.3% 19.1% 0.0% 0.0% 0.0% 0.0% Treatment $33,288,900 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Meters $2,510,674 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% Hydrants $104,643 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% Administrative and General $9,293,290 0.0% 61.6% 23.5% 12.6% 2.3% 0.1% 0.0% 0.0% Non-Operating Expense
39 City of Corona – 2024 Water, Reclaimed Water, and Sewer Rate Study Table 39. Total of Non-Operating Functional Categories Allocated to Cost Components Category Total
Allocation
Source of
Supply Base MDD PHD Meters Fire
Protection
Customer
Service Conservation
Water Supply $3,949,211 $3,949,211 $0 $0 $0 $0 $0 $0 $0 Groundwater $25,439,237 $25,439,237 $0 $0 $0 $0 $0 $0 $0 Storage $35,010,321 $0 $25,351,115 $9,659,206 $0 $0 $0 $0 $0 Transmission and Distribution $185,777,068 $0 $108,888,565 $41,488,396 $35,400,107 $0 $0 $0 $0 Pumping $72,736,794 $0 $42,632,846 $16,243,840 $13,860,108 $0 $0 $0 $0 Treatment $33,288,900 $33,288,900 $0 $0 $0 $0 $0 $0 $0
Meters $2,510,674 $0 $0 $0 $0 $2,510,674 $0 $0 $0
Hydrants $104,643 $0 $0 $0 $0 $0 $104,643 $0 $0
Administrative and General $9,293,290 $0 $5,724,726 $2,181,218 $1,167,118 $211,416 $8,812 $0 $0 Percent of Total 100.0% 17.0% 49.6% 18.9% 13.7% 0.7% 0.03% 0.0% 0.0% Non-Operating Expense
The non-operating expenses for the test year are made up of debt service payments and capital expenditures totaling approximately $15.6 million. Those costs are distributed to the cost components based on the final percentages shown in Table 39, above, which are based on the total asset values of water assets owned by the City. Water asset values represent the long-term investment in the City’s water system and are proxy value for how a single year of non-operating expenses should be allocated. Asset values do not significantly fluctuate year over year as annual capital expenditures do, which ensures that cost categories are accurately represented. Operating allocations are based on the projected test year expenses and the total for each cost component reflect the percentages in Table 37. Table 40 shows the projected test year expenses allocated to each cost component based on the percentages in Table 37 and Table 39.
Table 40. Operating and Non-Operating Cost Allocation to Cost Components Cost Component Operating
Percentage
Operating
Costs
Non-Operating
Percentage
Non-Operating
Costs
Total 100.0% $55,012,051 100.0% $15,597,241
Source of Supply 43.0% $23,644,881 17.0% $2,655,710
Base 23.7% $13,053,467 49.6% $7,736,851
MDD 9.0% $4,973,593 18.9% $2,947,872
PHD 7.7% $4,243,734 13.7% $2,136,663
Meters 0.0% $0 0.7% $115,338
Fire Protection 0.0% $0 0.03% $4,807
Customer Service 13.5% $7,419,807 0.0% $0
Conservation 3.0% $1,676,568 0.0% $0