(i) The certifier must not attempt to rebut presumed economic disadvantage as a matter of course and it must avoid imposing unnecessary burdens on individual owners or disproportionately impose them on members of a particular group.
(ii) The certifier must proceed as provided in § 26.87. (2) Economic disadvantage in fact.
(i) To rebut the presumption, the certifier must prove that a reasonable person would not consider the individual economically disadvantaged. The certifier may consider assets and income, free use of them or ready access to their benefits, and any other trappings of wealth that the certifier considers relevant. There are no assets (including retirement assets), income, equity, or other exclusions and no limitations on inclusions. A broad and general analysis suffices in most cases: the owner has, or enjoys the benefits of, income of X; two homes worth approximately Y; substantial interests in outside businesses Q, R, and S; four rental properties of aggregate value Z; etc. The certifier need only demonstrate “ballpark” values based on available evidence. The reasonable person is not party to detailed financial information. S/he considers the owner's overall circumstances and lifestyle.
(ii) The certifier must proceed as provided in § 26.87. (d) Non-presumptive disadvantage. An owner who is not presumed to be SED under paragraph (a) of this section may demonstrate that he is SED based on his own experiences and circumstances that occurred within American society.
(1) To attempt to prove individual SED, the owner provides the certifier a Personal Narrative (PN) that describes in detail specific acts or omissions by others, which impeded his progress or success in education, employment, and/or business, including obtaining financing on terms available to similarly situated, non-disadvantaged persons.
(2) The PN must identify at least one objective basis for the detrimental discrimination. The basis may be any identifiable status or condition. The PN must describe this objective distinguishing feature(s) (ODF) in sufficient detail to justify the owner's conclusion that it prompted the prejudicial acts or omissions.
(3) The PN must state how and to what extent the discrimination caused the owner harm, including a full description of type and magnitude.
(4) The owner must establish that he is economically disadvantaged in fact and that he is economically disadvantaged relative to similarly situated non-disadvantaged individuals. (5) The owner must attach to the PN a current PNW statement and any other financial information he considers relevant.
(6) This rule does not prescribe how the owner must satisfy his burden of proving disadvantage. He need not, for example, have filed any formal complaint, or prove discrimination under a particular statute.
Example 1 to paragraph (d): A White male claiming to have experienced employment discrimination must provide evidence that his employment status and/or limited opportunities to earn income result from specific prejudicial acts directed at him personally because of an ODF, and not, e.g., an economic recession that caused widespread unemployment.
49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.67(c)(1)(i)
49 CFR 26.67(d) “Example 1 to paragraph (d)” (enhanced display) page 39 of 69
[89 FR 24970, Apr. 9, 2024; 89 FR 55089, July 3, 2024]
§ 26.68 Personal net worth.
(a) General. An owner whose PNW exceeds $2,047,000 is not presumed economically disadvantaged. The Department will adjust the PNW cap pursuant to paragraph (d) of this section. (b) Required documents. Each owner on whom the firm relies for certification must submit a DOE and a corroborating personal net worth (PNW) statement, including required attachments. The owner must report PNW on the form, available at https://www.Transportation.gov/DBEFORMS. A certifier may require an owner to provide additional information on a case-by-case basis to verify the accuracy and completeness of the PNW statement. The certifier must have a legitimate and demonstrable need for the additional information.
(c) Reporting. The following rules apply without regard to State community property, equitable distribution, or similar rules. The owner reports assets and liabilities that she owns or is deemed to own. Ownership tracks title to the asset or obligor status on the liability except where otherwise provided or when the transaction results in evasion or abuse.
(1) The owner excludes her ownership interest in the applicant or DBE. (2) The owner excludes her share of the equity in her primary residence. There is no exclusion when the SEDO does not own the home.
Example 1 to paragraph (c)(2): The owner and her spouse hold joint title to their primary residence, for which they paid $300,000 and are coequal debtors on a bank mortgage and a home equity line of credit with current combined balances of $150,000. The owner may exclude her $75,000 share of the $150,000 of total equity.
(3) The owner includes the full value of the contents of her primary residence unless she cohabits with a spouse or domestic partner, in which case she excludes only 50 percent of those assets. (4) The owner includes the value of all motor vehicles, including watercraft and ATVs, titled in her name or of which she is the principal operator.
(5) The owner excludes the liabilities of any other party and those contingent on a future event or of undetermined value as of the date of the PNW Statement. (6) The owner includes her proportional share of the balance of a debt on which she shares joint and severable liability with other primary debtors.
Example 2 to paragraph (c)(6): When the owner co-signs a debt instrument with two other individuals, the rule considers her liable for one-third of the current loan balance. (7) The owner includes assets transferred to relatives or related entities within the two years preceding any UCA or DOE, when the assets so transferred during the period have an aggregate value of more than $20,000. Relatives include the owner's spouse or domestic partner, children (whether biological, adopted or stepchildren), siblings (including stepsiblings and those of the spouse or domestic partner), and parents (including stepparents and those of the spouse or domestic partner). Related entities include for-profit privately held companies of which any relative is an owner, officer, director, or equivalent; and family or other trusts of which the owner or any relative is grantor, trustee, or beneficiary, except when the transfer is irrevocable.
49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.68
49 CFR 26.68(c)(7) (enhanced display) page 40 of 69
Formula 1 to Paragraph (d)
[89 FR 24971, Apr. 9, 2024; 89 FR 55089, July 3, 2024]
§ 26.69 Ownership.
(8) The owner excludes direct payments, on behalf of immediate family members or their children, to unrelated providers of healthcare, education, or legal services. (9) The owner excludes direct payments to providers of goods and services directly related to a celebration of an immediate family member's or that family member's child's significant, normally non-recurring life event.
(10) The owner excludes from net worth all assets in qualified retirement accounts but must report those accounts, the value of assets in them, and any significant terms and restrictions concerning the assets' use, to the certifier.
(d) Regulatory adjustments.
(1) The Department will adjust the PNW cap by May 9, 2027 by multiplying $1,600,000 by the growth in total household net worth since 2019 as described by “Financial Accounts of the United States:
Balance Sheet of Households (Supplementary Table B.101.h)” produced by the Board of Governors of the Federal Reserve (https://www.federalreserve.gov/releases/z1/), and normalized by the total number of households as collected by the Census in “Families and Living Arrangements” (https://www.census.gov/topics/families/families-and-households.html) to account for population growth. The Department will adjust the PNW cap every 3 years on the anniversary of the adjustment date described in this section. The Department will post the adjustments on the Departmental Office of Civil Rights' web page, available at https://www.Transportation.gov/DBEPNW. Each such adjustment will become the currently applicable PNW limit for purposes of this regulation. (2) The Department will use formula 1 to this paragraph (d)(2) to adjust the PNW limit:
(e) Confidentiality. Notwithstanding any provision of Federal or State law, a certifier must not release an individual's PNW statement nor any documents pertaining to it to any third party without the written consent of the submitter. Provided, that you must transmit this information to DOT in any certification appeal proceeding under § 26.89 or to any other State to which the individual's firm has applied for certification under § 26.85.
(a) General rule. A SEDO must own at least 51 percent of each class of ownership of the firm. Each SEDO whose ownership is necessary to the firm's eligibility must demonstrate that her ownership satisfies the requirements of this section. If not, the firm is ineligible. 49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.68(c)(8)
49 CFR 26.69(a) (enhanced display) page 41 of 69
(b) Overall Requirements. A SEDO's acquisition and maintenance of an ownership interest meets the requirements of this section only if the SEDO demonstrates the following:
(1) Acquisition. The SEDO acquires ownership at fair value and by one or more “investments,” as defined in paragraph (c) of this section.
(2) Proportion. No owner derives benefits or bears burdens that are clearly disproportionate to their ownership shares.
(3) Maintenance. This section's requirements continue to apply after the SEDO's acquisition and the firm's certification. That is, the SEDO must maintain her investment and its proportion relative to those of other owners.
(i) The SEDO may not withdraw or revoke her investment. (ii) When an existing co-owner contributes significant, additional, post-acquisition cash or property to the firm, the SEDO must increase her own investment to a level not clearly disproportionate to the non-SEDO's investment.
(A) Example 1 to paragraph (b)(3)(ii). SEDO and non-SEDO own DBE 60/40. Their respective investments are approximately $600,000 and $400,000. The DBE has operated its business under this ownership and with this capitalization for 2 years. In Year 3, the nonSEDO contributes a $2 million asset to the business. The SEDO, as a result, owns 60 percent of a $2 million asset without any additional outlay. Her ownership interest, assuming no other pertinent facts, is worth $1.2 million more than it was before. Unless the SEDO increases her investment significantly, it is clearly disproportionate to the nonSEDO's investment and to her nominal 60 percent ownership. She has not maintained her investment.
(B) Example 2 to paragraph (b)(3)(ii). Same facts except that the DBE purchases the asset with a combination of 30 percent operating income and 70 percent proceeds of a bank loan.
The SEDO maintains her investment because it remains in proportion to the non-SEDO's investment and to the value of her 60 percent ownership interest. (C) Example 3 to paragraph (b)(3)(ii). Same facts except that the non-SEDO, not a bank, is the DBE's creditor. The SEDO has not maintained her investment because the benefits and burdens of her ownership are clearly disproportionate to those of the non-SEDO. The transaction may also raise § 26.71 concerns.
(iii) An organic increase in the value of the business does not affect maintenance because the value of the owners' investments remains proportional. In Example 2 above, the SEDO and the non-SEDO own the new asset at 60 percent and 40 percent of its net value of $60,000. (c) Investments. A SEDO may acquire ownership by purchase, capital contribution, or gift. Subject to the other requirements of this section, each is considered an “investment” in the firm, as are additional purchases, contributions, and qualifying gifts.
(1) Investments are unconditional and at full risk of loss. (2) Investments include a significant outlay of the SEDO's own money. (3) For purposes of this part, title determines ownership of assets used for investments and of ownership interests themselves. This rule applies regardless of contrary community property, equitable distribution, banking, contract, or similar laws, rules, or principles. 49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.69(b)
49 CFR 26.69(c)(3) (enhanced display) page 42 of 69
(i) The person who has title to the asset owns it in proportion to her share of title. (ii) However, the title rule is deemed not to apply when it produces a certification result that is manifestly unjust.
(4) If the SEDO jointly (50/50) owns an investment of cash or property, the SEDO may claim at least a 51 percent ownership interest only if the other joint owner formally transfers to the SEDO enough of his ownership in the invested asset(s) to bring the SEDO's investment to at least 51 percent of all investments in the firm. Such transfers may be gifts described in paragraph (e) of this section. (d) Purchases and capital contributions.
(1) A purchase of an ownership interest is an investment when the consideration is entirely monetary and not a trade of property or services.
(2) Capital that the SEDO contributes directly to the company is an investment when the contribution is all cash or a combination of cash and tangible property and/or realty. (3) Contributions of time, labor, services, and the like are not investments or components of investments.
(4) Loans are not investments. The proceeds of loans may be investments to the extent that they finance the SEDO's qualifying purchase or capital contribution. (5) Debt-financed purchases or capital contributions are investments when they comply with the rules in this section and in § 26.70.
(6) Guarantees are not investments.
(7) The firm's purchases or sales of property, including ownership in itself or other companies, are not the SEDO's investments.
(8) Other persons' or entities' purchases or capital contributions are not the SEDO's investments. (e) Gifts. A gift to the SEDO is an investment when it meets the requirements of this section. The gift rules apply to partial gifts, bequests, inheritances, trust distributions, and transfers for inadequate consideration. They apply to gifts of ownership interests and to gifts of cash or property that the SEDO invests. The following requirements apply to gifts on which the SEDO relies for her investment. (1) The transferor/donor is or immediately becomes uninvolved with the firm in any capacity and in any other business that contracts with the firm other than as a lessor or provider of standard support services;
(2) The transferor does not derive undue benefit; and
(3) A writing documents the gift. When the SEDO cannot reasonably produce better evidence, a receipt, cancelled check, or transfer confirmation suffices, if the writing identifies transferor, transferee, amount or value, and date.
(f) Curative measures. The rules of this section do not prohibit transactions that further the objectives of, and compliance with, the provisions of this part. A SEDO or firm may enter into legitimate transactions, alter the terms of ownership, make additional investments, or bolster underlying documentation in a good faith effort to remove, surmount, or correct defects in eligibility, as long as the actions are consistent with this part.
49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.69(c)(3)(i)
49 CFR 26.69(f) (enhanced display) page 43 of 69
[89 FR 24972, Apr. 9, 2024]
§ 26.70 Debt-financed investments.
(1) The certifier may notify the firm of eligibility concerns and give the firm time, if the firm wishes, to attempt to remedy impediments to certification.
(2) The firm may, of its own volition, take curative action up to the time of the certifier's decision.
However, it must present evidence of curation before the certifier's decision. (3) The certifier may provide general assistance and guidance but not professional (legal, accounting, valuation, etc.) advice or opinions.
(4) While the certifier may not affirmatively impede attempts to cure, it may maintain its decision timeline and make its decision based on available evidence. (5) The certifier must deny or remove certification when the firm's efforts or submissions violate the rules in paragraph (g) of this section.
(g) Anti-abuse rules.
(1) The substance and not the form of transactions drives the eligibility determination. (2) The certifier must deny applications based on sham transactions or false representations, and it must decertify DBEs that engage in or make them. Transactions or representations designed to evade or materially mislead subject the firm to the same consequences. (3) Fraud renders the firm ineligible and subjects it to sanctions, suspension, debarment, criminal prosecution, civil litigation, and any other consequence or recourse not proscribed in this part.
Example 1 to paragraph (g)(3): SEDO claims an investment consisting of a contribution of equipment and a significant amount of her own cash. She shows that she transferred title to the equipment and wrote a check from an account she alone owns. She does not disclose that her brother-in-law lent her the money and she must repay him. The firm is ineligible under paragraphs (g)(1) and (2) of this section.
(a) Subject to the other provisions of this subpart, a SEDO may borrow money to finance a § 26.69(c) investment entirely or partially if the SEDO has paid, on a net basis, at least 15 percent of the total value of the investment by the time the firm applies for certification.
Example 1 to paragraph (a) introductory text: A SEDO who borrows $9,000 of her $10,000 cash investment in Applicant, Inc., must have repaid, from her own funds, at least $500 of the loan's principal by the time Applicant, Inc. applies for certification.
Example 2 to paragraph (a) introductory text: A SEDO who finances $8,000 of a $10,000 investment in Applicant may apply for Applicant's certification at any time.
Example 3 to paragraph (a) introductory text: A SEDO who contributes to the Applicant equipment worth $40,000, which she purchased with $10,000 of her own money and $30,000 of seller financing may apply for Applicant's certification at any time.
(1) The SEDO pays the net 15 percent portion of the investment to Seller or Applicant (as the case may be) from her own, not borrowed, money.
(2) Money that the SEDO receives as a § 26.69(e) gift is her own money. 49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.69(f)(1)
49 CFR 26.70(a) “Example 3 to paragraph (a) introductory text” (2) (enhanced display) page 44 of 69
[89 FR 24973, Apr. 9, 2024]
§ 26.71 Control.
(3) The firm, whether Applicant or DBE, does not finance any part of the investment, directly or indirectly.
(b) The loan is real, enforceable, not in default, not offset by another agreement, and on standard commercial, arm's length terms. The following conditions also apply. (1) The SEDO is the sole debtor.
(2) The firm is not party to the loan in any capacity, including as a guarantor. (3) The SEDO does not rely on the company's credit or other resources to repay any part of the debt or otherwise to finance any part of her investment.
(4) The loan agreement requires level, regularly recurring payments of principal and interest, according to a standard amortization schedule, at least until the SEDO satisfies requirements in paragraph (a) of this section.
(5) The loan agreement permits prepayments, including by refinancing. (c) If the creditor forgives or cancels all or part of the debt, or the SEDO defaults, the entire debt-financed portion of the SEDO's purchase or capital contribution is no longer an investment.
Example 4 to paragraph (c): SEDO finances $40,000 of a $50,000 investment, and the firm becomes certified. When the SEDO has repaid half of the loan's principal and associated interest, the creditor forgives the remaining $20,000 debt. The SEDO's investment is now $10,000. (d) Paragraph (c) of the section does not prohibit refinancing with debt that meets the requirements of this section or preclude prompt curation under § 26.69(f).
(a) General rules.
(1) One or more SEDOs of the firm must control it.
(2) Control determinations must consider all pertinent facts, viewed together and in context. (3) A firm must have operations in the business for which it seeks certification at the time it applies.
Certifiers do not certify plans or intentions, or issue contingent or conditional certifications. (b) SEDO as final decision maker. A SEDO must be the ultimate decision maker in fact, regardless of operational, policy, or delegation arrangements.
(c) Governance. Governance provisions may not require that any SEDO obtain concurrence or consent from a non-SEDO to transact business on behalf of the firm.
(1) Highest officer position. A SEDO must hold the highest officer position in the company (e.g., chief executive officer or president).
(2) Board of directors. Except as detailed in paragraph (c)(4) of this section, a SEDO must have present control of the firm's board of directors, or other governing body, through the number of eligible votes. (i) Quorum requirements. Provisions for the establishment of a quorum must not block the SEDO from calling a meeting to vote and transact business on behalf of the firm. 49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.70(a) “Example 3 to paragraph (a) introductory text” (3)
49 CFR 26.71(c)(2)(i) (enhanced display) page 45 of 69
(ii) Shareholder actions. A SEDO's authority to change the firm's composition via shareholder action does not prove control within the meaning of paragraph (c) of this section. (3) Partnerships. In a partnership, at least one SEDO must serve as a general partner, with control over all partnership decisions.
(4) Exception. Bylaws or other governing provisions that require non-SEDO consent for extraordinary actions generally do not contravene the rules in paragraph (c) of this section. Non-exclusive examples are a sale of the company or substantially all of its assets, mergers, and a sudden, wholesale change of type of business.
(d) Expertise. At least one SEDO must have an overall understanding of the business and its essential operations sufficient to make sound managerial decisions not primarily of an administrative nature. The requirements of this paragraph (d) vary with type of business, degree of technological complexity, and scale.
(e) SEDO decisions. The firm must show that the SEDO critically analyzes information provided by non-SEDOs and uses that analysis to make independent decisions.
(f) Delegation. A SEDO may delegate administrative activities or operational oversight to a non-SED individual as long as at least one SEDO retains unilateral power to fire the delegate(s), and the chain of command is evident to all participants in the company and to all persons and entities with whom the firm conducts business.
(1) No non-SED participant may have power equal to or greater than that of a SEDO, considering all the circumstances. Aggregate magnitude and significance govern; a numerical tally does not. (2) Non-SED participants may not make non-routine purchases or disbursements, enter into substantial contracts, or make decisions that affect company viability without the SEDO's consent. (3) Written provisions or policies that specify the terms under which non-SED participants may sign or act on the SEDO's behalf with respect to recurring matters generally do not violate this paragraph (f), as long as they are consistent with the SEDO having ultimate responsibility for the action. (g) Independent business.
(1) If the firm receives from or shares personnel, facilities, equipment, financial support, or other essential resources, with another business (whether a DBE or non-DBE firm) or individual on other than commercially reasonable terms, the firm must prove that it would be viable as a going concern without the arrangement.
(2) The firm must not regularly use another firm's business-critical vehicles, equipment, machinery, or facilities to provide a product or service under contract to the same firm or one in a substantially similar business.
(i) Exception 1. Paragraphs (g)(1) and (2) of this section do not preclude the firm from providing services to a single customer or to a small number of them, provided that the firm is not merely a conduit, captive, or unnecessary third party acting on behalf of another firm or individual.
Similarly, providing a volume discount to such a customer does not impair viability unless the firm repeatedly provides the service at a significant and unsustainable loss. (ii) Exception 2. A firm may share essential resources and deal exclusively with another firm that a SEDO controls and of which the SEDO owns at least 51 percent ownership. 49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.71(c)(2)(ii)
49 CFR 26.71(g)(2)(ii) (enhanced display) page 46 of 69
[89 FR 24973, Apr. 9, 2024]
§ 26.73 NAICS codes.
[89 FR 24974, Apr. 9, 2024]
Subpart E—Certification Procedures
(h) Franchise and license agreements. A business operating under a franchise or license agreement may be certified if it meets the standards in this subpart and the franchiser or licenser is not affiliated with the franchisee or licensee. In determining whether affiliation exists, the certifier should generally not consider the restraints relating to standardized quality, advertising, accounting format, and other provisions imposed on the franchisee or licensee by the franchise agreement or license, if the franchisee or licensee has the right to profit from its efforts and bears the risk of loss commensurate with ownership.
Alternatively, even though a franchisee or licensee may not be controlled by virtue of such provisions in the franchise agreement or license, affiliation could arise through other means, such as common management or excessive restrictions on the sale or transfer of the franchise interest or license. (a) A certifier must grant certification to a firm only for specific types of work that the SEDO controls. To become certified in an additional type of work, the firm must demonstrate to the certifier only that its SEDO controls the firm with respect to that type of work. The certifier must not require that the firm be recertified or submit a new application for certification but must verify the SEDO's control of the firm in the additional type of work.
(1) A correct NAICS code is the one that describes, as specifically as possible, the principal goods or services which the firm would provide to DOT recipients. Multiple NAICS codes may be assigned where appropriate. Program participants must rely on, and not depart from, the plain meaning of NAICS code descriptions in determining the scope of a firm's certification. (2) If there is not a NAICS code that fully, clearly, or sufficiently narrowly describes the type(s) of work for which the firm seeks certification, the certifier must supplement or limit the assigned NAICS code(s) with a clear, specific, and concise narrative description of the type of work in which the firm is certified. A vague, general, or confusing description is insufficient. (3) Firms and certifiers must check carefully to make sure that the NAICS codes cited in a certification are kept up-to-date and accurately reflect work which the UCP has determined the firm's owners can control. The firm bears the burden of providing detailed company information the certifying agency needs to make an appropriate NAICS code designation.
(4) A certifier may change a certification classification or description if there is a factual basis in the record, in which case it must notify the firm 30 days before making the change. Certifiers may not apply such changes retroactively.
(5) In addition to applying the appropriate NAICS code, the certifier may apply a descriptor from a classification scheme of equivalent detail and specificity. Such a descriptor (e.g., a “work code”) does not supersede or limit the types of work for which a DBE is eligible under an appropriate NAICS code.
(b) [Reserved]
49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.71(h)
49 CFR 26.73(b) (enhanced display) page 47 of 69
§ 26.81 Unified Certification Programs.
(a) You and all other DOT recipients in your state must participate in a Unified Certification Program (UCP). (1) All recipients in the same jurisdiction (normally a State) must sign an agreement establishing a UCP and submit the agreement to the Secretary for approval. (2) The agreement must provide for the establishment of a UCP meeting all the requirements of this section. The agreement must specify that the UCP will follow all certification procedures and standards of this part, on the same basis as recipients; that the UCP shall cooperate fully with oversight, review, and monitoring activities of DOT and its operating administrations; and that the UCP shall implement DOT directives and guidance concerning certification matters. The agreement shall also commit recipients to ensuring that the UCP has sufficient resources and expertise to carry out the requirements of this part. The agreement shall include an implementation schedule ensuring that the UCP is fully operational no later than 18 months following the approval of the agreement by the Secretary.
(3) Subject to approval by the Secretary, the UCP in each state may take any form acceptable to the recipients in that state.
(4) The Secretary shall review the UCP and approve it, disapprove it, or remand it to the recipients in the state for revisions. A complete agreement which is not disapproved or remanded within 180 days of its receipt is deemed to be accepted.
(b) The UCP shall make all certification decisions on behalf of all DOT recipients in the state with respect to participation in the DOT DBE Program.
(1) Certification decisions by the UCP shall be binding on all DOT recipients within the state. (2) The UCP shall provide “one-stop shopping” to applicants for certification, such that an applicant is required to apply only once for a DBE certification that will be honored by all recipients in the state. (3) All obligations of recipients with respect to certification and nondiscrimination must be carried out by UCPs, and recipients may use only UCPs that comply with the certification and nondiscrimination requirements of this part.
(c) All certifications by UCPs shall be pre-certifications; i.e., certifications that have been made final before the due date for bids or offers on a contract on which a firm seeks to participate as a DBE. (d) A UCP is not required to process an application for certification from a firm having its principal place of business outside the state if the firm is not certified by the UCP in the state in which it maintains its principal place of business. The Jurisdiction of Original Certification UCP shall share its information and documents concerning the firm with other UCPs that are considering the firm's application. (e) Subject to DOT approval as provided in this section, recipients in two or more states may form a regional UCP. UCPs may also enter into written reciprocity agreements with other UCPs. Such an agreement shall outline the specific responsibilities of each participant. A UCP may accept the certification of any other UCP or DOT recipient.
(f) Pending the establishment of UCPs meeting the requirements of this section, you may enter into agreements with other recipients, on a regional or inter-jurisdictional basis, to perform certification functions required by this part. You may also grant reciprocity to other recipient's certification decisions. 49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.81
49 CFR 26.81(f) (enhanced display) page 48 of 69
[64 FR 5126, Feb. 2, 1999, as amended at 76 FR 5100, Jan. 28, 2011; 89 FR 24974, Apr. 9, 2024; 89 FR 55089, July 3, 2024] § 26.83 What procedures do certifiers follow in making certification decisions? (g) Each UCP must maintain a unified DBE directory containing, for all firms certified by the UCP (including those from other States certified under the provisions of this part), the information required by § 26.31.
The UCP must make the directory available to the public electronically, on the internet. The UCP must update the electronic version of the directory by including additions, deletions, and other changes as soon as they are made.
(h) Except as otherwise specified in this section, all provisions of this subpart and subpart D of this part pertaining to recipients also apply to UCPs.
(a) You must ensure that only firms certified as eligible DBEs under this section participate as DBEs in your program.
(b) You must determine the eligibility of firms as DBEs consistent with the standards of subpart D of this part.
When a UCP is formed, the UCP must meet all the requirements of subpart D of this part and this subpart that recipients are required to meet.
(c)
(1) You must take all the following steps in determining whether a DBE firm meets the standards of subpart D of this part:
(i) A certifier must visit the firm's principal place of business, virtually or in person, and interview the SEDO, officers, and key personnel. The certifier must review those persons' résumés and/or work histories. The certifier must maintain a complete audio recording of the interview. The certifier must also visit one or more active job sites (if there is one). These activities comprise the “on-site review” (OSR), a written report of which the certifier must keep in its files. (ii) Analyze documentation related to the legal structure, ownership, and control of the applicant firm. This includes, but is not limited to, Articles of Incorporation/Organization; corporate bylaws or operating agreements; organizational, annual and board/member meeting records; stock ledgers and certificates; and State-issued Certificates of Good Standing (iii) Analyze the bonding and financial capacity of the firm; lease and loan agreements; bank account signature cards;
(iv) Determine the work history of the firm, including contracts it has received, work it has completed; and payroll records;
(v) Obtain a statement from the firm of the type of work it prefers to perform as part of the DBE program and its preferred locations for performing the work, if any. (vi) Obtain or compile a list of the equipment owned by or available to the firm and the licenses the firm and its key personnel possess to perform the work it seeks to do as part of the DBE program;
(vii) Obtain complete Federal income tax returns (or requests for extensions) filed by the firm, its affiliates, and the socially and economically disadvantaged owners for the last 3 years. A complete return includes all forms, schedules, and statements filed with the Internal Revenue Service.
49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.81(g)
49 CFR 26.83(c)(1)(vii) (enhanced display) page 49 of 69
(viii) Require potential DBEs to complete and submit an appropriate application form, except as otherwise provided in § 26.85 of this part.
(2) You must use the application form available at https://transportation.gov/DBEFORMS without change or revision. However, you may provide in your DBE program, with the written approval of the concerned operating administration, for supplementing the form by requesting specified additional information not inconsistent with this part.
(3) The certifier must ensure that the SEDO signs the Declaration of Eligibility (DOE) at the end of the Uniform Certification Application (UCA), subscribed to as true under penalty of perjury that all information provided is current, accurate, and complete. (4) You must review all information on the form prior to making a decision about the eligibility of the firm. You may request clarification of information contained in the application at any time in the application process.
(d) When another certifier, in connection with its consideration of the eligibility of a firm, makes a written request for certification information you have obtained about that firm (e.g., including application materials or the report of a site visit, if you have made one to the firm), you must promptly make the information available to the other certifier.
(e) [Reserved]
(f) Subject to the approval of the concerned operating administration as part of your DBE program, you may impose a reasonable application fee for certification. Fee waivers shall be made in appropriate cases. (g) You must safeguard from disclosure to unauthorized persons information gathered as part of the certification process that may reasonably be regarded as proprietary or other confidential business information, consistent with applicable Federal, state, and local law. (h)
(1) Once a certifier has certified a firm, the firm remains certified unless and/or until the certifier removes certification, in whole or in part (i.e., NAICS code removal), through the procedures of §
26.87. (2) The certifier may not require a DBE to reapply for certification, renew its certification, undergo a recertification, or impose any functionally equivalent requirement. The certifier may, however, conduct a certification review at any reasonable time and/or at regular intervals of at least two years. The certification review may, at the certifier's discretion, include a new OSR. The certifier may also make an unannounced visit to the DBE's offices and/or job site. The certifier may also rely on another certifier's report of its OSR of the DBE.
(i) If you are a DBE, you must inform the certifier or UCP in writing of any change in circumstances affecting your ability to meet size, disadvantaged status, ownership, or control requirements of this part or any material change in the information provided in your application form. (1) Changes in management responsibility among members of a limited liability company are covered by this requirement.
(2) You must attach supporting documentation describing in detail the nature of such changes. 49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.83(c)(1)(viii)
49 CFR 26.83(i)(2) (enhanced display) page 50 of 69
(3) The DBE must notify the certifier of a material change in its circumstances that affects its continued eligibility within 30 days of its occurrence, explain the change fully, and include a duly executed DOE with the notice. The DBE's non-compliance is a § 26.109(c) failure to cooperate. (j) A DBE must provide its certifier(s), every year on the anniversary of its original certification, a new DOE along with the specified documentation in § 26.65(a), including gross receipts for its most recently completed fiscal year, calculated on a cash basis regardless of the DBE's overall accounting method. The sufficiency of documentation (and its probative value) may vary by business type, size, history, resources, and overall circumstances. However, the following documents may generally be considered “safe harbors,” provided that they include all reportable receipts, properly calculated, for the full reporting period: audited financial statements, a CPA's signed attestation of correctness and completeness, or all income-related portions of one or more (when there are affiliates) signed Federal income tax returns as filed. Non-compliance, whether full or partial, is a § 26.109(c) failure to cooperate. (k) The certifier must advise each applicant within 30 days of filing whether the application is complete and suitable for evaluation and, if not, what additional information or action is required. (l)
(1) The certifier must render a final eligibility decision within 90 days of receiving all information required from the applicant under this part. The certifier may extend this time period once, for no more than an additional 30 days, upon written notice to the firm, explaining fully and specifically the reasons for the extension. On a case-by-case basis, the concerned OA may give the certifier one deadline extension if it approves a written request explaining why the certifier needs more time. The certifier's failure to issue a compliant decision by the applicable deadline is a constructive denial of the application, appealable to DOT under § 26.89. In this case, the certifier may be subject to enforcement actions described in §§ 26.103 and 26.105.
(2) [Reserved]
(m)
(1) A certifier may notify the applicant about ineligibility concerns and allow the firm to rectify deficiencies within the period in paragraph (l) of this section. (2) If a firm takes curative measures before the certifier renders a decision, the certifier must consider any evidence it submits of having taken such measures. The certifier must not automatically construe curative measures as successful or abusive.
(i) Example 1 to paragraph (m)(2). The firm may obtain proof of an investment, transaction, or other fact on which its eligibility depends.
(ii) Example 2 to paragraph (m)(2). An owner or related party may create a legally enforceable document of irrevocable transfer to the SEDO.
(iii) Example 3 to paragraph (m)(2). The firm may amend an operating agreement, bylaw provision, or other governance document, provided that the amendment accurately reflects the parties' relationships, powers, responsibilities, and other pertinent circumstances. 49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.83(i)(3)
49 CFR 26.83(m)(2)(iii) (enhanced display) page 51 of 69
[64 FR 5126, Feb. 2, 1999, as amended at 68 FR 35555, June 16, 2003; 76 FR 5100, Jan. 28, 2011; 79 FR 59598, Oct. 2, 2014; 89 FR 24974, Apr. 9, 2024; 89 FR 55090, July 3, 2024]
§ 26.85 Interstate certification.
(n) Except as otherwise provided in this paragraph (n), if an applicant for DBE certification withdraws its application before the certifier issues a decision, the applicant can resubmit the application at any time.
However, the certifier may place the reapplication at the “end of the line,” behind other applications that have been made since the firm's previous application was withdrawn. The certifier may apply the §
26.86(c) waiting period to a firm that has established a pattern of withdrawing applications before its decision.
(a) Applicability. This section applies to a DBE certified in any UCP. (b) General rule. When a DBE applies to another UCP for certification, the new UCP must accept the DBE's certification from its jurisdiction of original certification (JOC). The JOC is the State in which the firm maintains its principal place of business at the time of application unless and until the firm loses certification in that jurisdiction.
(c) Application procedure. To obtain certification by an additional UCP, the DBE must provide:
(1) A cover letter that specifies that the DBE is applying for interstate certification, identifies all UCPs in which the DBE is certified (including the UCP that originally certified it) (2) An electronic image of the UCP directory of the original UCP that shows the DBE certification; and (3) A new DOE.
(d) Confirmation of eligibility. Within 10 business days of receiving the documents required under paragraph (c) of this section, the additional UCP must confirm the certification of the DBE preferably by reference to the UCP directory of the JOC.
(e) Certification. If the DBE fulfills the requirements of paragraph (c) of this section and the UCP confirms the DBE's certification per paragraph (d) of this section, the UCP must certify the DBE immediately without undergoing further procedures and provide the DBE with a letter documenting its certification. (f) Noncompliance. Failure of the additional UCP to comply with paragraphs (d) and (e) of this section is considered non-compliance with this part.
(g) Post-interstate certification proceedings.
(1) After the additional UCP certifies the DBE, the UCP may request a fully unredacted copy of all, or a portion of, the DBE's certification file from any other UCP in which the DBE is certified. (2) A UCP must provide a complete unredacted copy of the DBE's certification materials to the additional UCP within 30 days of receiving the request. Confidentiality requirements of §§ 26.83(d) and
26.109(b) do not apply.
(3) Once the new UCP certifies, then it must treat the DBE as it treats other DBEs, for all purposes. (4) The DBE must provide an annual DOE with documentation of gross receipts, under § 26.83(j), to certifying UCPs on the anniversary date of the DBE's original certification by its JOC. (h) Decertifications.
49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.83(n)
49 CFR 26.85(h) (enhanced display) page 52 of 69
[89 FR 24975, Apr. 9, 2024; 89 FR 55090, July 3, 2024]
§ 26.86 Decision letters.
(1) If any UCP has reasonable cause to remove a DBE's certification, in whole or in part (i.e., NAICS code removal), it must notify the other UCPs in which the DBE is certified (“other jurisdictions”) via email.
The notice must explain the UCP's reasons for believing the DBE's certification should be removed. (2) Within 30 days of receiving the notice, the other jurisdictions must email the UCP contemplating decertification a concurrence or non-concurrence with the proposed action. The other jurisdictions' responses may provide written arguments and evidence and may propose additional reasons to remove certification. A jurisdiction's failure to timely respond to the reasonable cause notice will be deemed to be a concurrence.
(3) After a UCP receives all timely responses, it must make an independent decision whether to issue a NOI and what grounds to include.
(4) Other UCPs may, before the hearing, submit written arguments and evidence concerning whether the firms should remain certified, but may not participate in the hearing. (5) If the UCP finds the firm ineligible the firm immediately loses certification in all jurisdictions in which it is certified. The NOD must include appeal instructions provided on the Departmental Office of Civil Rights' web page, available at https://www.transportation.gov/dbeappeal. The UCP must email a copy of its decision to the other jurisdictions within 3 business days. (6) The rules of paragraph (h) do not apply to attempts to decertify based upon a DBE's actions or inactions pertaining to §§ 26.83(j) (Declaration of Eligibility) and 26.109(c) (failure to cooperate). (7) Decertifications under this paragraph (h) must provide due process to DBEs. (i) If a UCP decides not to issue a NOD removing the DBE's certification, no jurisdiction may initiate decertification proceedings, within one year, on the same or similar grounds and underlying facts.
(ii) If a DBE believes a UCP unfairly targets it with repeated decertification attempts, the DBE may file a complaint to the appropriate OA.
(8) The Department's appeal decisions are binding on all UCPs unless stated otherwise. (a) When a certifier denies a firm's request for certification or decertifies the firm, the certifier must provide the firm a NOD explaining the reasons for the adverse decision, specifically referencing the evidence in the record that supports each reason. A certifier must also include, verbatim, the instructions found on the Departmental Office of Civil Rights' web page, available at https://www.transportation.gov/dbeappeal. (b) The certifier must promptly provide the applicant copies of all documents and other information on which it based the denial if the applicant requests them.
(c) The certifier must establish a waiting period for reapplication of no more than 12 months. That period begins to run the day after the date of the decision letter is emailed. After the waiting period expires, the denied firm may reapply to any member of the UCP that denied the application. The certifier must inform the applicant of that right, and specify the date the waiting period ends, in its decision letter. (d) An appeal does not extend the waiting period.
49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.85(h)(1)
49 CFR 26.86(d) (enhanced display) page 53 of 69
[89 FR 24976, Apr. 9, 2024]
§ 26.87 Decertification.
(a) Burden of proof. To decertify a DBE, the certifier bears the burden of proving, by a preponderance of the evidence, that the DBE does not meet the certification standards of this part. (b) Initiation of decertification proceedings.
(1) A certifier may determine on its own that it has reasonable cause to decertify a DBE. (2) If an OA determines that there is reasonable cause to believe that a DBE does not meet the eligibility criteria of this part, the OA may direct the certifier to initiate a proceeding to remove the DBE's certification.
(i) The OA must provide the certifier and the DBE written notice describing the reasons for the directive, including any relevant documentation or other information. (ii) The certifier must immediately commence a proceeding to decertify as provided by paragraph (e) of this section.
(3) Any person may file a complaint explaining, with specificity, why the certifier should decertify a DBE.
The certifier need not act on a general allegation or an anonymous complaint. The certifier must keep complainants' identities confidential as provided in § 26.109(b). (i) The certifier must review its records concerning the DBE, any material the DBE and/or complainant provides, and any other available information. The certifier may request additional information from the DBE or conduct any other investigation that it deems necessary. (ii) If the certifier determines that there is reasonable cause to decertify the DBE, it initiates a decertification proceeding. If it determines that there is not such reasonable cause, it notifies the complainant and the DBE in writing of its decisions and the reasons for it. (c) Notice of intent (NOI). A certifier's first step in any decertification proceeding must be to email a notice of intent (NOI) to the DBE.
(1) The NOI must clearly and succinctly state each reason for the proposed action, and specifically identify the supporting evidence for each reason.
(2) The NOI must notify the DBE of its right to respond in writing, at an informal hearing, or both. (3) The NOI must inform the DBE of the hearing scheduled on a date no fewer than 30 days and no more than 45 days from the date of the NOI.
(4) If the ground for decertification is that the DBE has been suspended or debarred for conduct related to the DBE program, the certifier issues a NOD decertifying the DBE. In this case, there is no NOI or opportunity for a hearing or written response.
(d) Response to NOI.
(1) If the DBE wants a hearing, it must email the certifier saying so within 10 days of the NOI. If the DBE does not do so, it loses its opportunity for a hearing. (2) The certifier and DBE may negotiate a different hearing date from that stated in the NOI. Parties must not engage in dilatory tactics.
49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.87
49 CFR 26.87(d)(2) (enhanced display) page 54 of 69
(3) If the DBE does not want a hearing, or does not give timely notice to the certifier that it wants one, the DBE may still provide written information and arguments to the certifier rebutting the reasons for decertification stated in the NOI.
(e) Hearings.
(1) The purpose of the hearing is for the certifier to present its case and for the DBE to rebut the certifier's allegations.
(2) The hearing is an informal proceeding with rules set by the hearing officer. The SEDO's attorney, a non-SEDO, or other individuals involved with the DBE may attend the hearing and answer questions related to their own experience or more generally about the DBE's ownership, structure and operations.
(3) The certifier must maintain a complete record of the hearing, either in writing, video or audio. If the DBE appeals to DOT under § 26.89, the certifier must provide that record to DOT and to the DBE. (f) Separation of functions. The certifier must ensure that the decision in a decertification case is made by an individual who did not take part in actions leading to or seeking to implement the proposal to decertify the DBE and is not subject, with respect to the matter, to direction from the office or personnel who did take part in these actions.
(1) The certifier's method of implementing this requirement must be made part of its DBE program and approved by the appropriate OA.
(2) The decisionmaker must be an individual who is knowledgeable about the certification requirements of this part.
(g) Notice of decision. The certifier must send the firm a NOD no later than 30 days of the informal hearing and/or receiving written arguments/evidence from the firm in response to the NOI. (1) The NOD must describe with particularity the reason(s) for the certifier's decision, including specific references to the evidence in the record that supports each reason. The NOD must also inform the firm of the consequences of the decision under paragraph (i) of this section and of its appeal rights under § 26.89.
(2) The certifier must send copies of the NOD to the complainant in an ineligibility complaint or to the OA that directed the certifier to initiate the proceeding. (3) When sending a copy of an NOD to a complainant other than an OA, the certifier must not include information reasonably construed as confidential business information, unless the certifier has the written consent of the firm that submitted the information. (4) The certifier must make an entry in DOCR's Online Portal within 5 days of the action. The certifier must enter the name of the firm, names(s) of the firm's owner(s), date of decision, and the reason(s) for its decision.
(h) Status of firm during proceeding. A DBE remains certified until the certifier issues a NOD. (i) [Reserved]
(j) Consequences. Decertification has the following effects on contract and overall goals and DBE participation:
49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.87(d)(3)
49 CFR 26.87(j) (enhanced display) page 55 of 69
[89 FR 24976, Apr. 9, 2024; 89 FR 55090, July 3, 2024]
§ 26.88 Summary suspension of certification.
(1) When a prime contractor has made a commitment to use a DBE, but a subcontract has not been executed before the certifier issues the NOD as provided for in paragraph (g) of this section, the committed firm does not count toward the contract goal. The recipient must direct the prime contractor to meet the contract goal with an eligible DBE or demonstrate to the recipient that it has made good faith efforts to do so.
(2) When the recipient has made a commitment to using a DBE prime contractor, but a contract has not been executed before the certifier issues the NOD, the decertified firm does not count toward the recipient's overall DBE goal.
(3) If a prime contractor has executed a subcontract with a DBE before the certifier issues the NOD, the prime contractor may continue to receive credit toward the contract goal for the firm's work. In this case, however, the prime contractor may not extend or add work to the contract without prior written consent from the recipient.
(4) If a prime contractor has executed a subcontract with a DBE before the certifier issues the NOD, the prime contractor may continue to receive credit toward the contract goal as set forth in paragraph (j)(3) of this section; however, the portion of the decertified firm's continued performance of the contract must not count toward the recipient's overall goal. (5) If the recipient executed a prime contract with a DBE that was later decertified, the portion of the decertified firm's performance of the contract remaining after the certifier issued the NOD must not count toward an overall goal, but the DBE's performance of the contract may continue to count toward satisfying any contract goal.
(6) The following exceptions apply to this paragraph (j):
(i) If a certifier decertifies a firm solely because it exceeds the business size standard during the performance of the contract, the recipient may continue to count the portion of the decertified firm's performance of the contract remaining after the certifier issued the NOD toward the recipient's overall goal as well as toward the contract goal. (ii) If the certifier decertifies the DBE because it was acquired by or merged with a non-DBE, the recipient may not continue to count the portion of the decertified firm's performance on the contract remaining, after the certifier issued a NOD, toward either the contract goal or the overall goal, even if a prime contractor has executed a subcontract with the firm or the recipient has executed a prime contract with the DBE that was later decertified. In this case, if eliminating the credit of the decertified firm will affect the prime contractor's ability to meet the contract goal, the recipient must direct the prime contractor to subcontract to an eligible DBE to the extent needed to meet the contract goal or demonstrate to the recipient that it has made good faith efforts to do so.
(a) Definition. Summary suspension is an extraordinary remedy for lapses in compliance that cannot reasonably or adequately be resolved in a timely manner by other means. (1) A firm's certification is suspended under this part as soon as the certifier transmits electronic notice to its owner at the last known email address.
49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.87(j)(1)
49 CFR 26.88(a)(1) (enhanced display) page 56 of 69
(2) During the suspension period, the DBE may not be considered to meet a contract or participation goal on contracts executed during the suspension period. (b) Mandatory and elective suspensions —
(1) Mandatory. The certifier must summarily suspend a DBE's certification when:
(i) The certifier has clear and credible evidence of the DBE's or its SEDO's involvement in fraud or other serious criminal activity.
(ii) The OA with oversight so directs.
(2) Elective.
(i) The certifier has discretion to suspend summarily if it has clear and credible evidence that the DBE's continued certification poses a substantial threat to program integrity. (ii) An owner upon whom the firm relies for eligibility does not timely file the declaration and gross receipts documentation that § 26.83(j) requires.
(c) Coordination with other remedies. In most cases, a simple information request or a § 26.87 NOI is a sufficient response to events described in paragraphs (b)(1) and (2) of this section. The certifier should consider the burden to the DBE and to itself in determining whether summary suspension is a more prudent and proportionate, effective response. The certifier may elect to suspend the same DBE just once in any 12-month period.
(d) Procedures —
(1) Notice. The certifier must notify the firm, by email, of its summary suspension notice (SSN) on a business day during regular business hours. The SSN must explain the action, the reason for it, the consequences, and the evidence on which the certifier relies. (i) Elective SSNs may not cite more than one reason for the action. (ii) Mandatory SSNs may state multiple reasons.
(iii) The SSN, regardless of type, must demand that the DBE show cause why it should remain certified and provide the time and date of a virtual show-cause hearing at which the firm may present information and arguments concerning why the certifier should lift the suspension. The SSN must also advise that the DBE may provide written information and arguments in lieu of or in addition to attending the hearing.
(2) Hearing. The hearing date must be a business day that is at least 15 but not more than 25 days after the date of the notice. The DBE may respond in writing in lieu of or in addition to attending the hearing; however, it will have waived its right to a hearing if it does not confirm its attendance within 10 days of the notice and will have forfeited its certification if it does not acknowledge the notice within 15 days. The show-cause hearing must be conducted as a video conference on a standard commercial platform that the DBE may readily access at no cost. (3) Response. The DBE may provide information and arguments concerning its continuing eligibility until the 15th day following the suspension notice or the day of the hearing, if any, whichever is later. The DBE must email any written response it provides. Email submissions correctly addressed are effective when sent. The certifier may permit additional submissions after the hearing, as long as the extension ends on a business day that is not more than 30 days after the notice. 49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.88(a)(2)
49 CFR 26.88(d)(3) (enhanced display) page 57 of 69
[89 FR 24977, Apr. 9, 2024; 89 FR 55090, July 3, 2024]
(4) Scope and burdens.
(i) Suspension proceedings are limited to the suspension ground specified in the notice. (ii) The certifier may not amend its reason(s) for summarily suspending certification, nor may it electively suspend the firm again during the 12-month period following the notice. (iii) The DBE has the burden of producing information and/or making arguments concerning its continued eligibility, but it need only contest the reason cited. (iv) The certifier has the burden of proving its case by a preponderance of the evidence. It must issue an NOD within 30 days of the suspension notice or lift the suspension. Any NOD must rely only on the reason given in the summary suspension notice. (v) The DBE's failure to provide information contesting the suspension does not impair the certifier's ability to prove its case. That is, the uncontested evidence upon which the certifier relies in its notice, if substantial, will constitute a preponderance of the evidence for purposes of the NOD.
(5) Duration. The DBE remains suspended during the proceedings described in this section but in no case for more than 30 days. If the certifier has not lifted the suspension or provided a rule-compliant NOD by 4:30 p.m. on the 30th day, then it must lift the suspension and amend applicable DBE lists and databases by 12 p.m. the following business day.
(e) Recourse —
(1) Appeal. The DBE may appeal a final decision under paragraph (d)(4)(iv) of this section, as provided in § 26.89(a), but may not appeal the suspension itself, unless paragraph (e)(2) of this section applies. (2) Enforcement.
(i) The DBE may immediately petition the Department for an order to vacate a certifier's action if:
(A) The certifier sends a second elective SSN within 12 months, or (B) Cites multiple reasons in an elective SSN contrary to paragraph (d)(1)(i) of this section. (ii) The DBE may also petition to the Department for an order to compel if the certifier fails to act within the time specified in paragraph (d)(5) of this section. (3) In either case, the DBE must:
(i) Email the request under the subject line, “REQUEST FOR ENFORCEMENT ORDER” in all caps; (ii) Limit the request to a one-page explanation that includes:
(A) The certifier's name and the suspension dates;
(B) Contact information for the certifier, the DBE, and the DBE's SEDO(s); and (C) The general nature and date of the firm's response, if any, to the second suspension notice; and
(D) The suspension notice(s).
49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.88(d)(4)
49 CFR 26.88(e)(3)(ii)(D) (enhanced display) page 58 of 69
§ 26.89 Appeals to the Department.
(a)
(1) Applicants and decertified firms may appeal adverse NODs to the Department. (2) An ineligibility complainant or applicable Operating Administration (the latter by the terms of §
26.87(c)) may appeal to the Department if the certifier does not find reasonable cause to issue an NOI to decertify or affirmatively determines that the DBE remains eligible. (3) Appellants must email appeals as directed in the certifier's decision letter within 45 days of the date of the letter. The appeal must at a minimum include a narrative that explains fully and specifically why the firm believes the decision is in error, what outcome-determinative facts the certifier did not consider, and/or what part 26 provisions the certifier misapplied. (4) The certifier's decision remains in effect until the Department resolves the appeal or the certifier reverses itself.
(b) When it receives an appeal, the Department requests a copy of the certifier's complete administrative record including a video, audio, or transcript of any hearing, which the certifier must provide within 20 days of the Department's request. The Department may extend this time period when the certifier demonstrates good cause. The certifier must ensure that the administrative record is well organized, indexed, and paginated and the certifier must provide the appellant a copy of any supplemental information it provides to DOT.
(c)
(1) The Department may accept an untimely or incomplete appeal if it determines, in its sole discretion, that doing so is in the interest of justice.
(2) The Department may dismiss non-compliant or frivolous appeals without further proceedings. (d) The Department will avail itself of whatever remedies for noncompliance it considers appropriate. (e) The Department decides only the issue(s) presented on appeal. It does not conduct a de novo review of the matter, assess all eligibility requirements, or hold hearings. It considers the administrative record and any additional information that it considers relevant.
(f)
(1) The Department affirms the certifier's decision if it determines that the decision is consistent with applicable rules and supported by substantial evidence. (2) The Department reverses decisions that do not meet the standard in paragraph (f)(1) of this section. (3) The Department need not reverse if an error or omission did not result in fundamental unfairness or undue prejudice.
(4) The Department may remand the case with instructions for further action. When the Department specifies further actions, the certifier must take them without delay. (5) The Department generally does not uphold the certifier's decision based on grounds not specified in its decision.
(6) The Department resolves appeals on the basis of facts demonstrated, and evidence presented, at the time of the certifier's decision.
49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.89
49 CFR 26.89(f)(6) (enhanced display) page 59 of 69
[89 FR 24978, Apr. 9, 2024]
§ 26.91 What actions do certifiers take following DOT certification appeal decisions? [64 FR 5126, Feb. 2, 1999, as amended at 89 FR 24979, Apr. 9, 2024] Subpart F—Compliance and Enforcement
(7) The Department may summarily dismiss an appeal. Reasons for doing so include, but are not limited to, non-compliance, abuse of process, appellant or certifier request, and failure to state a claim upon which relief can be granted.
(g) The Department does not issue advisory opinions.
(h) All decisions described in paragraph (f) of this section are administratively final unless they say otherwise. (i) DOCR posts final decisions to its website, available at https://www.transportation.gov/DBEDecisions. (a) If you are the certifier from whose action an appeal under § 26.89 is taken, the decision is binding. It is not binding on other certifiers.
(b) If you are a certifier to which a DOT determination under § 26.89 is applicable, you must take the following action:
(1) If the Department determines that you erroneously certified a firm, you must remove the firm's eligibility on receipt of the determination, without further proceedings on your part. Effective on the date of your receipt of the Department's determination, the consequences of a removal of eligibility set forth in § 26.87(j) take effect.
(2) If the Department determines that you erroneously failed to find reasonable cause to remove the firm's eligibility, you must expeditiously commence a proceeding to determine whether the firm's eligibility should be removed, as provided in § 26.87.
(3) If the Department determines that you erroneously declined to certify or removed the eligibility of the firm, you must certify the firm, effective on the date of your receipt of the written notice of Department's determination.
(4) If the Department determines that you erroneously determined that the presumption of social and economic disadvantage either should or should not be deemed rebutted, you must take appropriate corrective action as determined by the Department.
(5) If the Department affirms your determination, no further action is necessary. (c) Where DOT has upheld your denial of certification to or removal of eligibility from a firm, or directed the removal of a firm's eligibility, other certifiers with whom the firm is certified may commence a proceeding to remove the firm's eligibility under § 26.87. Such certifiers must not remove the firm's eligibility absent such a proceeding. Where DOT has reversed your denial of certification to or removal of eligibility from a firm, other certifiers must take the DOT action into account in any certification action involving the firm.
However, other certifiers are not required to certify the firm based on the DOT decision. 49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.89(f)(7)
49 CFR 26.91(c) (enhanced display) page 60 of 69
§ 26.101 What compliance procedures apply to recipients? § 26.103 What enforcement actions apply in FHWA and FTA programs? The provisions of this section apply to enforcement actions under FHWA and FTA programs:
(a) If you fail to comply with any requirement of this part, you may be subject to formal enforcement action under § 26.103 or § 26.105 or appropriate program sanctions by the concerned operating administration, such as the suspension or termination of Federal funds, or refusal to approve projects, grants or contracts until deficiencies are remedied. Program sanctions may include, in the case of the FHWA program, actions provided for under 23 CFR 1.36; in the case of the FAA program, actions consistent with 49 U.S.C. 47106(d), 47111(d), and 47122; and in the case of the FTA program, any actions permitted under 49 U.S.C. chapter 53 or applicable FTA program requirements. (b) As provided in statute, you will not be subject to compliance actions or sanctions for failing to carry out any requirement of this part because you have been prevented from complying because a Federal court has issued a final order in which the court found that the requirement is unconstitutional. (a) Noncompliance complaints. Any person who believes that a recipient has failed to comply with its obligations under this part may file a written complaint with the concerned operating administration's Office of Civil Rights. If you want to file a complaint, you must do so no later than 180 days after the date of the alleged violation or the date on which you learned of a continuing course of conduct in violation of this part. In response to your written request, the Office of Civil Rights may extend the time for filing in the interest of justice, specifying in writing the reason for so doing. The Office of Civil Rights may protect the confidentiality of your identity as provided in § 26.109(b). Complaints under this part are limited to allegations of violation of the provisions of this part. (b) Compliance reviews. The concerned operating administration may review the recipient's compliance with this part at any time, including reviews of paperwork and on-site reviews, as appropriate. The Office of Civil Rights may direct the operating administration to initiate a compliance review based on complaints received.
(c) Reasonable cause notice. If it appears, from the investigation of a complaint or the results of a compliance review, that you, as a recipient, are in noncompliance with this part, the appropriate DOT office promptly sends you, return receipt requested, a written notice advising you that there is reasonable cause to find you in noncompliance. The notice states the reasons for this finding and directs you to reply within 30 days concerning whether you wish to begin conciliation. (d) Conciliation.
(1) If you request conciliation, the appropriate DOT office shall pursue conciliation for at least 30, but not more than 120, days from the date of your request. The appropriate DOT office may extend the conciliation period for up to 30 days for good cause, consistent with applicable statutes. (2) If you and the appropriate DOT office sign a conciliation agreement, then the matter is regarded as closed and you are regarded as complying. The conciliation agreement sets forth the measures you have taken or will take to ensure compliance. While a conciliation agreement is in effect, you remain eligible for FHWA or FTA financial assistance.
(3) The concerned operating administration shall monitor your implementation of the conciliation agreement and ensure that its terms are complied with. If you fail to carry out the terms of a conciliation agreement, you are in noncompliance.
49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.101
49 CFR 26.103(d)(3) (enhanced display) page 61 of 69
[64 FR 5126, Feb. 2, 1999, as amended at 89 FR 24979, Apr. 9, 2024] § 26.105 What enforcement actions apply in FAA programs? § 26.107 What enforcement actions apply to firms participating in the DBE program? [64 FR 5126, Feb. 2, 1999, as amended at 76 FR 5101, Jan. 28, 2011] (4) If you do not request conciliation, or a conciliation agreement is not signed within the time provided in paragraph (d)(1) of this section, then enforcement proceedings begin. (e) Enforcement actions.
(1) Enforcement actions are taken as provided in this subpart. (2) Applicable findings in enforcement proceedings are binding on all DOT offices. (a) Compliance with all requirements of this part by airport sponsors and other recipients of FAA financial assistance is enforced through the procedures of Title 49 of the United States Code, including 49 U.S.C. 47106(d), 47111(d), and 47122, and regulations implementing them. (b) The provisions of § 26.103(b) and this section apply to enforcement actions in FAA programs. (c) Any person who knows of a violation of this part by a recipient of FAA funds may file a complaint under 14 CFR part 16 with the Federal Aviation Administration Office of Chief Counsel. (a) If you are a firm that does not meet the eligibility criteria of subpart D of this part and that attempts to participate in a DOT-assisted program as a DBE on the basis of false, fraudulent, or deceitful statements or representations or under circumstances indicating a serious lack of business integrity or honesty, the Department may initiate suspension or debarment proceedings against you under 2 CFR parts 180 and 1200.
(b) If you are a firm that, in order to meet DBE contract goals or other DBE program requirements, uses or attempts to use, on the basis of false, fraudulent or deceitful statements or representations or under circumstances indicating a serious lack of business integrity or honesty, another firm that does not meet the eligibility criteria of subpart D of this part, the Department may initiate suspension or debarment proceedings against you under 2 CFR parts 180 and 1200. (c) In a suspension or debarment proceeding brought under paragraph (a) or (b) of this section, the concerned operating administration may consider the fact that a purported DBE has been certified by a recipient. Such certification does not preclude the Department from determining that the purported DBE, or another firm that has used or attempted to use it to meet DBE goals, should be suspended or debarred. (d) The Department may take enforcement action under 49 CFR Part 31, Program Fraud and Civil Remedies, against any participant in the DBE program whose conduct is subject to such action under 49 CFR part
31. (e) The Department may refer to the Department of Justice, for prosecution under 18 U.S.C. 1001 or other applicable provisions of law, any person who makes a false or fraudulent statement in connection with participation of a DBE in any DOT-assisted program or otherwise violates applicable Federal statutes. 49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.103(d)(4)
49 CFR 26.107(e) (enhanced display) page 62 of 69
§ 26.109 What are the rules governing information, confidentiality, cooperation, and intimidation or retaliation?
[64 FR 5126, Feb. 2, 1999, as amended at 68 FR 35556, June 16, 2003; 76 FR 5101, Jan. 28, 2011] Appendix A to Part 26—Guidance Concerning Good Faith Efforts (a) Availability of records.
(1) In responding to requests for information concerning any aspect of the DBE program, the Department complies with provisions of the Federal Freedom of Information and Privacy Acts (5 U.S.C. 552 and 552a). The Department may make available to the public any information concerning the DBE program release of which is not prohibited by Federal law. (2) Notwithstanding any provision of Federal or state law, you must not release any information that may reasonably be construed as confidential business information to any third party without the written consent of the firm that submitted the information. This includes applications for DBE certification and supporting information. However, you must transmit this information to DOT in any certification appeal proceeding under § 26.89 of this part or to any other state to which the individual's firm has applied for certification under § 26.85 of this part.
(b) Confidentiality of information on complainants. Notwithstanding the provisions of paragraph (a) of this section, the identity of complainants shall be kept confidential, at their election. If such confidentiality will hinder the investigation, proceeding or hearing, or result in a denial of appropriate administrative due process to other parties, the complainant must be advised for the purpose of waiving the privilege.
Complainants are advised that, in some circumstances, failure to waive the privilege may result in the closure of the investigation or dismissal of the proceeding or hearing. FAA follows the procedures of 14 CFR part 16 with respect to confidentiality of information in complaints. (c) Cooperation. All participants in the Department's DBE program (including, but not limited to, recipients, DBE firms and applicants for DBE certification, complainants and appellants, and contractors using DBE firms to meet contract goals) are required to cooperate fully and promptly with DOT and recipient compliance reviews, certification reviews, investigations, and other requests for information. Failure to do so shall be a ground for appropriate action against the party involved (e.g., with respect to recipients, a finding of noncompliance; with respect to DBE firms, denial of certification or removal of eligibility and/or suspension and debarment; with respect to a complainant or appellant, dismissal of the complaint or appeal; with respect to a contractor which uses DBE firms to meet goals, findings of non-responsibility for future contracts and/or suspension and debarment).
(d) Intimidation and retaliation. If you are a recipient, contractor, or any other participant in the program, you must not intimidate, threaten, coerce, or discriminate against any individual or firm for the purpose of interfering with any right or privilege secured by this part or because the individual or firm has made a complaint, testified, assisted, or participated in any manner in an investigation, proceeding, or hearing under this part. If you violate this prohibition, you are in noncompliance with this part.
I. When, as a recipient, you establish a contract goal on a DOT-assisted contract for procuring construction, equipment, services, or any other purpose, a bidder must, in order to be responsible and/or responsive, make sufficient good faith efforts to meet the goal. The bidder can meet this requirement in either of two ways. First, the bidder can meet the goal, documenting commitments for participation by DBE firms sufficient for this purpose. Second, even if it doesn't meet the goal, the bidder can document adequate good faith efforts. This means that the bidder must show that it took all necessary and reasonable steps 49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR 26.109
49 CFR Appendix-A-to-Part-26 I. (enhanced display) page 63 of 69
to achieve a DBE goal or other requirement of this part which, by their scope, intensity, and appropriateness to the objective, could reasonably be expected to obtain sufficient DBE participation, even if they were not fully successful.
II. In any situation in which you have established a contract goal, Part 26 requires you to use the good faith efforts mechanism of this part. As a recipient, you have the responsibility to make a fair and reasonable judgment whether a bidder that did not meet the goal made adequate good faith efforts. It is important for you to consider the quality, quantity, and intensity of the different kinds of efforts that the bidder has made, based on the regulations and the guidance in this Appendix.
The efforts employed by the bidder should be those that one could reasonably expect a bidder to take if the bidder were actively and aggressively trying to obtain DBE participation sufficient to meet the DBE contract goal. Mere pro forma efforts are not good faith efforts to meet the DBE contract requirements.
We emphasize, however, that your determination concerning the sufficiency of the firm's good faith efforts is a judgment call. Determinations should not be made using quantitative formulas.
III. The Department also strongly cautions you against requiring that a bidder meet a contract goal (i.e., obtain a specified amount of DBE participation) in order to be awarded a contract, even though the bidder makes an adequate good faith efforts showing. This rule specifically prohibits you from ignoring bona fide good faith efforts.
IV. The following is a list of types of actions which you should consider as part of the bidder's good faith efforts to obtain DBE participation. It is not intended to be a mandatory checklist, nor is it intended to be exclusive or exhaustive. Other factors or types of efforts may be relevant in appropriate cases.
A.
(1) Conducting market research to identify small business contractors and suppliers and soliciting through all reasonable and available means the interest of all certified DBEs that have the capability to perform the work of the contract. This may include attendance at pre-bid and business matchmaking meetings and events, advertising and/or written notices, posting of Notices of Sources Sought and/or Requests for Proposals, written notices or emails to all DBEs listed in the State's directory of transportation firms that specialize in the areas of work desired (as noted in the DBE directory) and which are located in the area or surrounding areas of the project.
(2) The bidder should solicit this interest as early in the acquisition process as practicable to allow the DBEs to respond to the solicitation and submit a timely offer for the subcontract. The bidder should determine with certainty if the DBEs are interested by taking appropriate steps to follow up initial solicitations.
B. Selecting portions of the work to be performed by DBEs in order to increase the likelihood that the DBE goals will be achieved. This includes, where appropriate, breaking out contract work items into economically feasible units (for example, smaller tasks or quantities) to facilitate DBE participation, even when the prime contractor might otherwise prefer to perform these work items with its own forces. This may include, where possible, establishing flexible timeframes for performance and delivery schedules in a manner that encourages and facilitates DBE participation.
C. Providing interested DBEs with adequate information about the plans, specifications, and requirements of the contract in a timely manner to assist them in responding to a solicitation with their offer for the subcontract.
49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR Appendix-A-to-Part-26 II.
49 CFR Appendix-A-to-Part-26 IV.C. (enhanced display) page 64 of 69
D.
(1) Negotiating in good faith with interested DBEs. It is the bidder's responsibility to make a portion of the work available to DBE subcontractors and suppliers and to select those portions of the work or material needs consistent with the available DBE subcontractors and suppliers, so as to facilitate DBE participation. Evidence of such negotiation includes the names, addresses, and telephone numbers of DBEs that were considered; a description of the information provided regarding the plans and specifications for the work selected for subcontracting; and evidence as to why additional Agreements could not be reached for DBEs to perform the work. (2) A bidder using good business judgment would consider a number of factors in negotiating with subcontractors, including DBE subcontractors, and would take a firm's price and capabilities as well as contract goals into consideration. However, the fact that there may be some additional costs involved in finding and using DBEs is not in itself sufficient reason for a bidder's failure to meet the contract DBE goal, as long as such costs are reasonable. Also, the ability or desire of a prime contractor to perform the work of a contract with its own organization does not relieve the bidder of the responsibility to make good faith efforts. Prime contractors are not, however, required to accept higher quotes from DBEs if the price difference is excessive or unreasonable.
E.
(1) Not rejecting DBEs as being unqualified without sound reasons based on a thorough investigation of their capabilities. The contractor's standing within its industry, membership in specific groups, organizations, or associations and political or social affiliations (for example union vs. non-union status) are not legitimate causes for the rejection or non-solicitation of bids in the contractor's efforts to meet the project goal. Another practice considered an insufficient good faith effort is the rejection of the DBE because its quotation for the work was not the lowest received. However, nothing in this paragraph shall be construed to require the bidder or prime contractor to accept unreasonable quotes in order to satisfy contract goals. (2) A prime contractor's inability to find a replacement DBE at the original price is not alone sufficient to support a finding that good faith efforts have been made to replace the original DBE. The fact that the contractor has the ability and/or desire to perform the contract work with its own forces does not relieve the contractor of the obligation to make good faith efforts to find a replacement DBE, and it is not a sound basis for rejecting a prospective replacement DBE's reasonable quote.
F. Making efforts to assist interested DBEs in obtaining bonding, lines of credit, or insurance as required by the recipient or contractor.
G. Making efforts to assist interested DBEs in obtaining necessary equipment, supplies, materials, or related assistance or services.
H. Effectively using the services of available minority/women community organizations; minority/ women contractors' groups; local, State, and Federal minority/women business assistance offices; and other organizations as allowed on a case-by-case basis to provide assistance in the recruitment and placement of DBEs.
V. In determining whether a bidder has made good faith efforts, it is essential to scrutinize its documented efforts. At a minimum, you must review the performance of other bidders in meeting the contract goal.
For example, when the apparent successful bidder fails to meet the contract goal, but others meet it, you 49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR Appendix-A-to-Part-26 IV.D.
49 CFR Appendix-A-to-Part-26 V. (enhanced display) page 65 of 69
[79 FR 59600, Oct. 2, 2014, as amended at 89 FR 24979, Apr. 9, 2024] Appendix B to Part 26 [Reserved]
Appendix C to Part 26—DBE Business Development Program Guidelines The purpose of this program element is to further the development of DBEs, including but not limited to assisting them to move into non-traditional areas of work and/or compete in the marketplace outside the DBE program, via the provision of training and assistance from the recipient. may reasonably raise the question of whether, with additional efforts, the apparent successful bidder could have met the goal. If the apparent successful bidder fails to meet the goal, but meets or exceeds the average DBE participation obtained by other bidders, you may view this, in conjunction with other factors, as evidence of the apparent successful bidder having made good faith efforts. As provided in §
26.53(b)(2)((vi), you must also require the contractor to submit copies of each DBE and non-DBE subcontractor quote submitted to the bidder when a non-DBE subcontractor was selected over a DBE for work on the contract to review whether DBE prices were substantially higher; and contact the DBEs listed on a contractor's solicitation to inquire as to whether they were contacted by the prime. Pro forma mailings to DBEs requesting bids are not alone sufficient to satisfy good faith efforts under the rule.
VI. A promise to use DBEs after contract award is not considered to be responsive to the contract solicitation or to constitute good faith efforts except in design-build procurement. (A) Each firm that participates in a recipient's business development program (BDP) program is subject to a program term determined by the recipient. The term should consist of two stages; a developmental stage and a transitional stage.
(B) In order for a firm to remain eligible for program participation, it must continue to meet all eligibility criteria contained in part 26.
(C) By no later than 6 months of program entry, the participant should develop and submit to the recipient a comprehensive business plan setting forth the participant's business targets, objectives and goals. The participant will not be eligible for program benefits until such business plan is submitted and approved by the recipient. The approved business plan will constitute the participant's short and long term goals and the strategy for developmental growth to the point of economic viability in non-traditional areas of work and/or work outside the DBE program.
(D) The business plan should contain at least the following:
(1) An analysis of market potential, competitive environment and other business analyses estimating the program participant's prospects for profitable operation during the term of program participation and after graduation from the program.
(2) An analysis of the firm's strengths and weaknesses, with particular attention paid to the means of correcting any financial, managerial, technical, or labor conditions which could impede the participant from receiving contracts other than those in traditional areas of DBE participation. (3) Specific targets, objectives, and goals for the business development of the participant during the next two years, utilizing the results of the analysis conducted pursuant to paragraphs (C) and (D)(1) of this appendix;
49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR Appendix-A-to-Part-26 VI.
49 CFR Appendix-C-to-Part-26(D)(3) (enhanced display) page 66 of 69
(4) Estimates of contract awards from the DBE program and from other sources which are needed to meet the objectives and goals for the years covered by the business plan; and (5) Such other information as the recipient may require. (E) Each participant should annually review its currently approved business plan with the recipient and modify the plan as may be appropriate to account for any changes in the firm's structure and redefined needs.
The currently approved plan should be considered the applicable plan for all program purposes until the recipient approves in writing a modified plan. The recipient should establish an anniversary date for review of the participant's business plan and contract forecasts. (F) Each participant should annually forecast in writing its need for contract awards for the next program year and the succeeding program year during the review of its business plan conducted under paragraph (E) of this appendix. Such forecast should be included in the participant's business plan. The forecast should include:
(1) The aggregate dollar value of contracts to be sought under the DBE program, reflecting compliance with the business plan;
(2) The aggregate dollar value of contracts to be sought in areas other than traditional areas of DBE participation;
(3) The types of contract opportunities being sought, based on the firm's primary line of business; and (4) Such other information as may be requested by the recipient to aid in providing effective business development assistance to the participant.
(G) Program participation is divided into two stages;
(1) a developmental stage and
(2) a transitional stage. The developmental stage is designed to assist participants to overcome their social and economic disadvantage by providing such assistance as may be necessary and appropriate to enable them to access relevant markets and strengthen their financial and managerial skills. The transitional stage of program participation follows the developmental stage and is designed to assist participants to overcome, insofar as practical, their social and economic disadvantage and to prepare the participant for leaving the program. (H) The length of service in the program term should not be a pre-set time frame for either the developmental or transitional stages but should be figured on the number of years considered necessary in normal progression of achieving the firm's established goals and objectives. The setting of such time could be factored on such items as, but not limited to, the number of contracts, aggregate amount of the contract received, years in business, growth potential, etc.
(I) Beginning in the first year of the transitional stage of program participation, each participant should annually submit for inclusion in its business plan a transition management plan outlining specific steps to promote profitable business operations in areas other than traditional areas of DBE participation after graduation from the program. The transition management plan should be submitted to the recipient at the same time other modifications are submitted pursuant to the annual review under paragraph (E) of this section. The plan should set forth the same information as required under paragraph (F) of steps the participant will take to continue its business development after the expiration of its program term. 49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR Appendix-C-to-Part-26(D)(4)
49 CFR Appendix-C-to-Part-26(I) (enhanced display) page 67 of 69
Appendix D to Part 26—Mentor-Protégé Program Guidelines (J) When a participant is recognized as successfully completing the program by substantially achieving the targets, objectives and goals set forth in its program term, and has demonstrated the ability to compete in the marketplace, its further participation within the program may be determined by the recipient. (K) In determining whether a concern has substantially achieved the goals and objectives of its business plan, the following factors, among others, should be considered by the recipient:
(1) Profitability;
(2) Sales, including improved ratio of non-traditional contracts to traditional-type contracts; (3) Net worth, financial ratios, working capital, capitalization, access to credit and capital; (4) Ability to obtain bonding;
(5) A positive comparison of the DBE's business and financial profile with profiles of non-DBE businesses in the same area or similar business category; and (6) Good management capacity and capability.
(L) Upon determination by the recipient that the participant should be graduated from the developmental program, the recipient should notify the participant in writing of its intent to graduate the firm in a letter of notification. The letter of notification should set forth findings, based on the facts, for every material issue relating to the basis of the program graduation with specific reasons for each finding. The letter of notification should also provide the participant 45 days from the date of service of the letter to submit in writing information that would explain why the proposed basis of graduation is not warranted. (M) Participation of a DBE firm in the program may be discontinued by the recipient prior to expiration of the firm's program term for good cause due to the failure of the firm to engage in business practices that will promote its competitiveness within a reasonable period of time as evidenced by, among other indicators, a pattern of inadequate performance or unjustified delinquent performance. Also, the recipient can discontinue the participation of a firm that does not actively pursue and bid on contracts, and a firm that, without justification, regularly fails to respond to solicitations in the type of work it is qualified for and in the geographical areas where it has indicated availability under its approved business plan. The recipient should take such action if over a 2-year period a DBE firm exhibits such a pattern. (A) The purpose of this program element is to further the development of DBEs, including but not limited to assisting them to move into non-traditional areas of work and/or compete in the marketplace outside the DBE program, via the provision of training and assistance from other firms. To operate a mentor-protégé program, a recipient must obtain the approval of the concerned operating administration. (B)
(1) Any mentor-protégé relationship shall be based on a written development plan, approved by the recipient, which clearly sets forth the objectives of the parties and their respective roles, the duration of the arrangement and the services and resources to be provided by the mentor to the protégé. The formal mentor-protégé agreement may set a fee schedule to cover the direct and indirect cost for such services rendered by the mentor for specific training and assistance to the protégé through the life of the agreement. Services provided by the mentor may be reimbursable under the FTA, FHWA, and FAA programs.
49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR Appendix-C-to-Part-26(J)
49 CFR Appendix-D-to-Part-26(B)(1) (enhanced display) page 68 of 69
(2) To be eligible for reimbursement, the mentor's services provided and associated costs must be directly attributable and properly allowable to specific individual contracts. The recipient may establish a line item for the mentor to quote the portion of the fee schedule expected to be provided during the life of the contract. The amount claimed shall be verified by the recipient and paid on an incremental basis representing the time the protégé is working on the contract. The total individual contract figures accumulated over the life of the agreement shall not exceed the amount stipulated in the original mentor/protégé agreement.
(C) DBEs involved in a mentor-protégé agreement must be independent business entities which meet the requirements for certification as defined in subpart D of this part. A protégé firm must be certified before it begins participation in a mentor-protégé arrangement. If the recipient chooses to recognize mentor/ protégé agreements, it should establish formal general program guidelines. These guidelines must be submitted to the operating administration for approval prior to the recipient executing an individual contractor/ subcontractor mentor-protégé agreement.
49 CFR Part 26 (up to date as of 4/21/2025)
Participation by Disadvantaged Business Enterprises in Department of... 49 CFR Appendix-D-to-Part-26(B)(2)
49 CFR Appendix-D-to-Part-26(C) (enhanced display) page 69 of 69
City of Corona Disadvantaged Business Enterprise Program Updated May 2025 Page 31 of 31 Attachment F – Roster of Certifying Agencies
UC
P
CALIFORNIA UNIFIED
CERTIFICATION PROGRAM (CUCP)
Roster of Certifying Agencies
UNIFIED CERTIFICATION PROGRAM
Note: If you received this information as a hard copy, the Uniform DBE/ACDBE Certification Application form and Personal Net Worth Statement are available at:
https://www.transportation.gov/civil-rights/disadvantaged-business-enterprise/readyapply If the firm has its principal place of business in another state and is currently certified in that state, please contact the California Department of Transportation.
Area Counties DBE Certifying Agencies
Riverside,
Imperial
&
San Diego (RIS)
Imperial
Riverside San
Diego
SUBMIT APPLICATION PACKAGE TO:
CITY OF LOS ANGELES*
LOS ANGELES COUNTY METROPOLITAN
TRANSPORTATION AUTHORITY
OR
CALIFORNIA DEPARTMENT OF
TRANSPORTATION
SEE CONTACT INFORMATION BELOW
Los Angeles
Area
Kern
Los Angeles
Orange
San Bernardino San
Luis Obispo Santa
Barbara Ventura
CITY OF LOS ANGELES
Bureau of Contract
Admin. Centralized
Certification Section 1149
S. Broadway, Ste 300
Los Angeles, CA
90015 Phone: (213)
847-2684
Fax: (213)847-2777
Email:
[email protected]
http://bca.lacity.org
*Please note: Only firms
located within City of Los
Angeles may apply
LOS ANGELES COUNTY
METROPOLITAN
TRANSPORTATION AUTHORITY
(METRO)
Diversity and Economic
Opportunity Department
One Gateway Plaza, MS 99-
8-4 Los Angeles, CA 90012
Phone: (213) 922-2600
Fax: (213) 922-7660
Email:
[email protected]
Please Note: Metro only
accepts online applications.
Please use link below to apply:
https://metro.gob2g.com/
Note: List of agencies subject to change Rev 04/23/2024
AREA COUNTIES DBE CERTIFYING AGENCIES
Bay Area/
Central
Valley
Alameda
Amador
Calaveras
Contra Costa
Fresno Kings
Madera Marin
Mariposa
Merced
Monterey Napa
San Benito San
Francisco San
Joaquin San
Mateo Santa
Clara Santa Cruz
Solano Sonoma
Stanislaus Tulare
Tuolumne
S.F. BAY AREA RAPID
TRANSIT DISTRICT (BART)
Office of Civil
Rights 300
Lakeside Drive
16th Floor
Oakland, CA 94612
Phone: (510) 464-6100
Fax: (510) 464-7587
www.bart.gov
CITY OF FRESNO
Finance Department,
Purchasing Division, DBE
Program
2600 Fresno Street, Room
2156
Fresno, CA 93721-3622
Phone: (559) 621-1163
Fax: (559) 488-1069
www.fresno.gov
SANTA CLARA VALLEY
TRANSPORTATION
AUTHORITY (VTA)
Business Diversity
Programs 3331 North First
Street, Bldg. B
San Jose, CA 95134-1906
Phone: (408) 321-5962
https://www.vta.org/busin
ess-center/businessdiversity-programs
[email protected]
SAN FRANCISCO
MUNICIPAL
TRANSPORTATION
AGENCY (SFMTA)
Contract Compliance Office
One S. Van Ness Avenue, 6th
Flr San Francisco, CA 94103
Phone: (415) 701-4436
Fax: (415) 701-4347
www.sfmuni.com
SAN MATEO COUNTY
TRANSIT DISTRICT
(SAMTRANS)/ PENINSULA
CORRIDOR JOINT
POWERS BOARD (JPB)
DBE Office
1250 San Carlos Avenue
San Carlos, CA 94070
Phone: (650) 508-7939
Fax: (650) 508-7738
www.samtrans.com
Northern
California
Alpine Butte
Colusa
Del Norte
El Dorado
Glenn
Humboldt
Inyo
Lake
Lassen
Mendocino
Modoc
Mono
Nevada
Placer
Plumas
Sacramento
Shasta
Sierra
Siskiyou
Sutter
Tehama
Trinity Yolo
Yuba
CALIFORNIA DEPARTMENT OF
TRANSPORTATION
(CALTRANS)
Office of Civil Rights
P.O. Box 942874, MS 79
Sacramento, CA 954274-0001
Phone: (916) 324-1700 or
Fax: (916) 324-1862
www.dot.ca.gov
Revised 04/23/2024
ACDBE CERTIFYING AGENCIES
CALIFORNIA DEPARTMENT OF TRANSPORTATION (CALTRANS)
Office of Civil Rights
P.O. Box 942874, MS 79
Sacramento, CA 954274-0001
Phone: (916) 324-1700 ** Fax: (916) 324-1862
www.dot.ca.gov
FOR LOS ANGELES WORLD AIRPORTS PLEASE CONTACT: CITY OF LOS
ANGELES
Office of Contract Compliance
1149 S. Broadway Street, Suite 300
Los Angeles, CA 90015
Phone (213) 847-2684 ** Fax: (213) 847-2777
http://bca.lacity.org
SAN DIEGO COUNTY REGIONAL AIRPORT AUTHORITY (SDCRAA)
Small Business Development Department
P.O. Box 82776
San Diego, CA 92138-2776
Phone: (619) 400-2568 ** Fax: (619) 400-2566
www.san.org
(San Diego Concessions Only)
SAN FRANCISCO INTERNATIONAL AIRPORT
Small Business Affairs Office
P.O. Box 8097
San Francisco, CA 94128
Phone: (650) 821-5021 ** Fax: (650) 821-5146
www.flysfo.com
(SFO Concessions Only)
SAN FRANCISCO MUNICIPAL TRANSPORTATION AGENCY (SFMTA)
Contract Compliance Office
One S. Van Ness Avenue, 6th Floor
San Francisco, CA 94103
Phone: (415) 701-4436 ** Fax: (415) 701-4347
www.sfmuni.com
Revised 04/23/2024
1 April 9, 2024
Disadvantaged Business Enterprise (DBE) and Airport Concession DBE (ACDBE) Final Rule : 49 CFR Parts 23 and 26
TOPIC SUMMARY OF KEY REVISIONS
Expands recipient reporting requirements
to USDOT to gain greater knowledge of
DBE/ACDBE characteristics,
bidding/solicitation practices and
utilization and overall program impact
• Annual DBE Directory Report to USDOT (“MAP-21” Report) would collect additional information such as DBE application rates and characteristics in statewide directories (e.g., ethnicity, number of certifications, suspension, and decertification status).
• Uniform Report would collect additional information such as names of DBE contractors that performed work and the work categories/trades performed, dollar value of contracts, number of firms that were listed at commitment but replaced (as well as an explanation for the replacement), and number of firms decertified during the reporting period.
• DBE Bidders List—recipients would enter into an online USDOT system of data about companies bidding on contracts or subcontracts, such as company name, DBE or non-DBE status, fields of work bid and related NAICS codes, etc. • ACDBE Active Participant List—requires recipients to create a list that would include all firms that have participated or attempted to participate in airport concession programs in previous years. This would give a glimpse of the universe of ACDBE and non-ACDBEs who seek concession opportunities for use in helping recipients set overall goals for car rentals and concessions other than car rental.
Adds and clarifies DBE program
definitions
• Disadvantaged Business Enterprise
• Personal net worth
• Principal place of business
• Transit vehicle manufacturer
• Unsworn declaration
2 April 9, 2024
TOPIC SUMMARY OF KEY REVISIONS
Adds, clarifies, and aligns ACDBE program
definitions with DBE program definitions
• Affiliation
• Airport Concession Disadvantaged Business Enterprise (ACDBE) • Alaska Native
• Assets
• Concession
• Contingent liability
• Days
• Liabilities
• Operating administration or OA
• Personal net worth
• Recipient
• Socially and economically disadvantaged individual
• Sub-concession
• Sublease
Administrative rules will ease burdens
and create firm opportunities
• Reduces administrative requirements for smaller FTA recipients receiving planning, capital and/or operating assistance between $250,000 and $670,000. • Removes the documents for the Uniform Report, Uniform Certification Application, and Personal Net Worth Statement from the regulation so that USDOT can easily amend them in the future.
• Expands existing DBE directories to enable prime contractors to identify a DBE’s location, lines of work (NAICS codes), and website.
• Streamlined interstate certification will reduce unnecessary burdens for both DBEs and certifiers (see page 3)
Replicates the DBE program’s small
business element requirements for the
ACDBE program
• Requires airports to take steps to eliminate obstacles for participation by smaller ACDBEs. Steps include unbundling contracts and submitting a plan to the FAA that includes race-neutral strategies to support greater participation by small ACDBEs.
• Requires airports to submit annual reports on their small business elements.
Adds a DBE performance plan
requirement for design-build projects
• Requires primes responding to a Request for Proposal on a design-build procurement to submit an open-ended DBE Performance Plan (DPP) with the proposal.
• DPPs are to detail the types of work the prime will solicit DBEs to perform and a projected timeframe in which actual subcontracts will come to fruition. • Recipients monitor the prime’s adherence to the plan throughout the life of the contract to evaluate good faith efforts, and parties may agree to make written DPP revisions throughout life of project.
Updates rules for counting participation
by DBE material suppliers and clarifies
terminology
• Adds “distributor” as a new subset of DBE suppliers. Distributors are permitted to drop-ship from manufacturers if the firm has a distributorship agreement or assumes all responsibility for the materials after point of origin, allowing 40% credit for the cost of materials.
• Requires recipients to establish pre-award procedures to determine whether a DBE supplier submitted by the contractor/bidder as a regular dealer or distributor has demonstrated the ability and intent to perform as a regular dealer or distributor during the contract, allowing 60% or 40%, respectively, of the cost of materials to count toward goal. This will ensure preliminary counting determinations and contract goal attainment decisions are based on the DBE’s ability and intent to comply with the rule’s commercially useful function (CUF) requirements.
• Clarifies definition of “manufacturer” – a DBE that makes minor material modifications is not a manufacturer for goal attainment purposes.
3 April 9, 2024
TOPIC SUMMARY OF KEY REVISIONS
Strengthens monitoring and prompt
payment requirements
• Rule clarifies that (1) a CUF review is necessary for every DBE that performs for credit toward a recipient’s overall goal and a contract goal, (2) DBEs used raceneutrally must be monitored, and (3) recipients must keep an accounting of each contractor’s progress in attaining a contract goal through progressive payments to the committed DBEs. This running tally requirement is essential so recipients can intervene in real-time if they observe a prime contractor falling short of a contract goal.
• Clarifies that every recipient’s DBE program must include mechanisms it will use for proactive monitoring and oversight of prime contractors’ compliance with subcontract prompt payment and return of retainage requirements. Reliance on complaints or notifications from subcontractors about a contractor’s failure to comply with prompt payment and retainage requirements is insufficient. • Specifies the prompt payment requirements flow down to all lower tier subcontractors.
Adds flexibilities to conserve certification
agency resources
• Formalizes COVID-19 guidance to allow virtual on-site interviews, virtual certification and decertification hearings, and alternative notarization methods.
Increases the personal net worth (PNW)
cap for owners to be eligible for the
programs; and simplifies the calculation
• Raises the PNW cap (last adjusted in 2011) from $1.32 to $2.047 million. • Excludes retirement assets from the calculation.
• Removes state marital laws or community property rules from the calculation. • Includes “household contents” of primary residence, but if owner lives with spouse or domestic partner the owner may exclude half.
• Motor vehicles of any type belong to the person who is the primary operator. • USDOT will regularly adjust the PNW cap in the future without rulemaking using Federal Reserve data.
Improves initial certification process
• Requires a firm to have operations in the type of business it seeks to perform before it applies for certification. This relieves certifiers from evaluating firms that have no ability to bid. (Not applicable to ACDBEs). • Disallows the certification of a firm as an ACDBE if the applicant intends to perform activities exclusively related to the renovation, repair, or construction of a concession facility (sometimes referenced as the “build-out”) for which participation cannot be counted toward an ACDBE goal.
• Codifies current “ability to cure” guidance regarding a firm’s legitimate efforts to correct certification impediments are not necessarily evasive. • Reduces the time a certifier can extend a certification review from 60 to 30 days.
Expedites interstate certification process
through less burdensome procedures
• A DBE would no longer have to provide additional UCPs a copy of the entire application package it submitted to the original jurisdiction of certification (OJC).
It must only request certification in writing, provide evidence of certification, and submit a declaration of eligibility.
• If the additional UCP confirms the DBE has certification, it must certify the firm within 10 business days.
• After certifying the DBE, the additional UCP may conduct its own certification review and initiate decertification procedures if it finds there is reasonable cause for determining that the firm is ineligible for certification. • Additional UCP must notify the other UCPs in which the firm is certified, explain why it found reasonable cause. The other UCPs must provide their concurrence or non-concurrence (including any written explanation) within 30 days. • After receiving all responses from other UCPs, the UCP initiating decertification independently determines whether to issue a notice of intent (NOI) to decertify the DBE and notice of decision (NOD).
4 April 9, 2024
TOPIC SUMMARY OF KEY REVISIONS
Amends ownership requirements for
certification eligibility
• Clarifies that ownership investment include purchases, capital infusions, gifts, and additional investments after initial ownership.
• Removes the marital property provision in the ownership rule. • Establishes special rules for when an individual borrows money to finance an investment to acquire ownership.
• Permits only 1 tier of ownership above a subsidiary DBE.
Amends control requirements for
certification eligibility
• General requirements--the disadvantaged majority owner(s) must “run the show,” be the ultimate decision maker, have present control of the board of directors, have an overall understanding of the firm’s operations to the extent necessary to make managerial decisions, and demonstrate a chain of command within the company.
• Decision-making power—the disadvantaged majority owner(s) must independently make major decisions that affect the firm’s prospects after receiving information from non-decision makers and critically analyzing it based on the owner’s knowledge.
• Independence–the firm must prove that it is independently viable, notwithstanding a relationship with another firm from which it receives or shares essential resources. A pattern of regular dealings with a single or small number of firms does not necessarily compromise a firm’s independence. • Removes provisions regarding family businesses, licenses, and equipment, outside employment, and disadvantaged owner’s remuneration.
Rebutting the presumption of economic
disadvantage
Reworks Appendix E criteria for
individualized determinations of social
and economic disadvantage
• Replaces ability to accumulate substantial wealth in favor of a reasonable person standard.
• Provides less prescriptive rules so certifiers can more accurately make individualized determinations of social and economic disadvantage and applicants have more discretion about what evidence to provide.
Amends rules for gross receipts
calculations
• Aligns rule text with law that makes permanent the 5-year average calculation of gross receipts to determine business size for individual NAICS codes. • Requires ACDBEs that are parties to a joint venture to include the proportionate share of joint venture receipts in its gross receipt calculation.
Amends rules for appealing adverse
certification decisions to USDOT
• Reduces time a firm may appeal a NOD from 90 to 45 days. • Changes the clock for the waiting period for reapplication from the date applicant receives the denial to the date the certifier sends the decision. • Allows USDOT, at its discretion, to summarily dismiss an appeal.
Balances procedural protections for DBEs
with certifier needs in decertification
actions
• Changes the requirement for recipients to offer an informal hearing –imposes a 45-day deadline by which decertification hearings must occur but ends delays caused by firm and recipient changing dates of the hearing. • Clarifies what members representing the DBE may attend and answer questions during the informal hearing.
• Imposes a 30-day deadline for a firm to render a notice of decision following a hearing or receiving written information from the DBE.
Clarifies how to count DBE participation
after decertification or other loss of
ineligibility
• Counting after decertification—(1) prime contractors may add work or extend a completed subcontract with a decertified firm only if it obtains prior, written consent from the recipient, and (2) continued credit toward a contract goal is disallowed if the DBE’s ineligibility after the subcontract is signed is the result of a purchase by, or merger with, a non-DBE firm (in which case the prime contractor would be required to use good faith efforts to replace the DBE if additional credit is needed to meet the contract goal).
5 April 9, 2024
TOPIC SUMMARY OF KEY REVISIONS
• Requires ongoing monitoring of ACDBEs that lose certification due to exceeding size or personal net worth criteria. ACDBEs must continue to submit declarations as a condition of continued counting.
Establishes procedures for counting
ACDBE participation for firms that are
decertified during the contract
performance period because of exceeding
the business size standard or the
disadvantaged owner exceeding the
personal net worth limit
• Requires decertified firms to report changes regarding their ownership and control requirements by submitting a declaration of eligibility to recipients, as a condition to continue counting their participation.
• Requires recipients rather than UCPs, to actively monitor firms decertified after contract award for ownership and control to determine the eligibility of their participation for continued counting.
Amends summary suspension rules
• Certifiers may only rely on a single reason if the summary suspension is based on an elective reason and limits elective suspension to once every 12 months. • Adds procedural protections and processes to the rule (e.g., requires notice of reasons for a recipient action, the evidence, the DBE’s response options, and consequences).
• Requirement for recipients to email DBEs the suspension notice. • Mandatory suspension when clear and credible evidence of the DBE’s involvement in fraud or other serious criminal activity or when OA so directs. • A rule-compliant suspension decision will be a NOD appealable to USDOT.
Enhances ACDBE goal setting and
reporting requirements
• Requires recipients to investigate the full extent of services provided by SEDO financial institutions and to encourage their use amongst primes. • Removes consultation requirement when no new concession opportunities exist. • Clarifies when and how concession specific goals may be set on purchases by concessions from ACDBE suppliers.
• Changes due date for airports to submit ACDBE shortfall analyses to 30 days after submission of the related Uniform Report.
Modifies bounds of long-term exclusive
lease (LTE) agreements in the ACDBE
program
• Extends the long-term definition from 5 to 10 years.
• Defines “exclusive agreement.”
• Closes regulatory oversight gaps within the provision with regard to LTE agreements that result from direct negotiated procurements and holdover tenancies.
• Streamlines the information and documentation requirements for LTE agreements subject to FAA approval.
This summary is not a comprehensive description of the final rule. ###
DATE: 05/21/2025
TO: Honorable Mayor and City Council Members
FROM: Planning and Development Department
2025-207
REQUEST FOR CITY COUNCIL ACTION
SUBJECT:
RELEASE OF IMPROVEMENT SECURITIES POSTED BY THE NEW HOME COMPANY SOUTHERN CALIFORNIA LLC FOR TRACT MAP 37644 LOCATED SOUTH OF EAGLE GLEN PARKWAY AND WEST OF INTERSTATE 15
EXECUTIVE SUMMARY:
This staff report asks the City Council to accept the public improvements and release the appropriate public improvement securities associated with Tract Map 37644. The developer has completed the improvements associated with the residential construction for Tract Map 37644 and is requesting the release of the posted public improvement securities.
RECOMMENDED ACTION:
That the City Council:
a. Accept the public improvements associated with Lots 12-23 and 30-37, and Lots X-Right, Z-Left, AA and BB of Tract Map 37644.
b. Retain twenty-five percent (25%) of the Faithful Performance Security for one year beyond the acceptance of the improvements as security for repair and replacement of any improvements that fail to meet City standards at the end of the one-year period. (Bond Nos. PB02497501367, PB02497501364, PB02497501365, PB02497501366, PB02497501368, PB02497501369, PB02497501358,
PB02497501359, PB02497501360, PB02497501370, PB02497501371, PB02497501363, PB02497501361, and PB02497501362)
c. Retain the Labor and Material Security for six months beyond the acceptance of the improvements and automatically release the security unless claims are filed. (Bond (Bond Nos. PB02497501367, PB02497501364, PB02497501365, PB02497501366, PB02497501368, PB02497501369, PB02497501358, PB02497501359, PB02497501360, PB02497501370, PB02497501371, PB02497501363, PB02497501361, and PB02497501362)
BACKGROUND & HISTORY:
Tract Map 37644 is a subdivision of approximately 51 acres into 45 lots for condominium purposes and is the second development phase of the Arantine Hills Specific Plan. The City Council approved the second development phase on August 21, 2019. The map facilitates the construction of 490 residential units, which includes 88 single-family detached condominiums, 66 detached units in clusters of 6, 72 triplex units, 78 paired units in clusters of 8, and 186 townhomes. The project also includes open space areas, trails, and an active park and recreational facility.
The New Home Company purchased a portion of the lots within the subdivision, and on June 15, 2022, entered into Public Improvement Agreements with the city for the improvements to Lots 12 through 23, 30 through 37, and Lots X-Right, Z-Left, AA and BB for the construction of 144 detached townhomes.
ANALYSIS:
The improvements secured by these agreements have been completed and inspected to ensure conformity with City specifications.
Twenty-five percent (25%) of the Faithful Performance Security for the public improvements will be retained for a period of one year to guarantee repair or replacement of any improvements that fail before the end of the one-year period. Any written claims against the performance security must be made before the one-year guarantee period, which is set to expire on May 21, 2026. City staff will release the Faithful Performance Security one year after acceptance of the improvements by the City Council, pursuant to California Government Code Section 66499.9(c).
It is necessary to retain the Labor and Material Security for a period of six months, in accordance with the State Subdivision Map Act.
The following is a summary of the securities:
Security Security No. Faithful
Performance Security No. Labor & Materials
Lot 18
PB0249750136
7 $113,600 PB0249750136
7 $56,800
Lots 12 & 13
PB0249750136
4 $239,600 PB0249750136
4 $119,800
Lots 14 & 15
PB0249750136
5 $226,600 PB0249750136
5 $113,300
Lots 16 & 17
PB0249750136
6 $208,000 PB0249750136
6 $104,000
Lots 19 & 20
PB0249750136
8 $208,000 PB0249750136
8 $104,000
Lot 21, 22 &
23 PB0249750136
9 $353,600 PB0249750136
9 $176,800
Lot 30 & 34
PB0249750135
8 $759,200 PB0249750135
8 $379,600
Lot 31, 32, 35,
36 & 37
PB0249750135
9 $546,400 PB0249750135
9 $273,200
Lot 33
PB0249750136
0 $143,800 PB0249750136
0 $71,900
Lot X Right
Pomelo Drive
Parkway
Landscape
PB0249750137
0 $45,400 PB0249750137
0 $22,700
Lot Z Left
Shada Lane
Parkway
Landscaping
PB0249750137
1 $50,600 PB0249750137
1 $25,300
Lot AA
Summer Way
Parkway
Landscaping
PB0249750136
3 $127,000 PB0249750136
3 $63,500
Lot BB Spring
Lane Street
Improvement
PB0249750136
1 $1,292,000 PB0249750136
1 $646,000
Lot BB Spring
Lane Parkway
Landscaping
PB0249750136
2 $112,200 PB0249750136
2 $56,100
FINANCIAL IMPACT:
All applicable fees have been paid by the developer.
ENVIRONMENTAL ANALYSIS:
The project was previously evaluated by an Environmental Impact Report that was certified pursuant to CEQA Sections 15162 and 15163 of the State Guidelines for Implementing the California Environmental Quality Act in 2012, and the Supplemental Environmental Impact Report adopted in 2016. Therefore, no further environmental analysis is required to reduce the amount of the project’s posted securities.
PREPARED BY: JESSICA KANG, ASSOCIATE ENGINEER
REVIEWED BY: JOANNE COLETTA, PLANNING AND DEVELOPMENT DIRECTOR ATTACHMENTS:
1. Exhibit 1 – Location Map
DATE: 05/21/2025
TO: Honorable Mayor and City Council Members
FROM: City Manager’s Office – City Clerk
2025-171
REQUEST FOR CITY COUNCIL ACTION
SUBJECT:
RESOLUTION NO. 2025-037, AUTHORIZING THE ANNUAL DESTRUCTION OF
CERTAIN OBSOLETE CITY RECORDS
EXECUTIVE SUMMARY:
This staff report asks the City Council to authorize the annual destruction and disposal of certain City records. The records proposed for destruction are obsolete and past the obligatory retention period and are no longer required. Therefore, staff recommends that the City Council approve the destruction of the records.
RECOMMENDED ACTION:
That the City Council adopt Resolution No. 2025-037, authorizing the annual destruction and disposal of certain City records.
BACKGROUND & HISTORY:
The California Government Code section 34090 authorizes the destruction of certain City records upon approval of the City's legislative body and the written consent of the City Attorney, provided that said records do not fall within certain specified categories.
On August 21, 2024, the City Council adopted Resolution No. 2024-072, approving the city-wide records retention schedule. The retention schedules were collaboratively developed with active participation from representatives of all Departments.
ANALYSIS:
Each year, each City department compiles an inventory of obsolete records, then submits it to the City Clerk for review. The City Clerk then forwards the list to the City Attorney for final review and approval. Once the list has completed the approval process, staff presents the inventory of records to the City Council for final destruction authorization.
The following Departments have records that are proposed for destruction:
1. Community Services
2. Finance
3. Fire
4. Human Resources
5. Legal and Risk Management
6. Office of the City Clerk
7. Police
8. Public Works
The specific records proposed for destruction are listed in Exhibit 2.
FINANCIAL IMPACT:
There is no financial impact associated with this request.
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 commonsense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen certainly 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 is for the annual destruction of obsolete City records, and there is no possibility that approving the recommended action will have a significant effect on the environment. Therefore, no environmental analysis is required.
PREPARED BY: SYLVIA EDWARDS, CITY CLERK
REVIEWED BY: JUSTIN TUCKER, ASSISTANT CITY MANAGER
ATTACHMENTS:
1. Exhibit 1 – Resolution No. 2025-037
2. Exhibit 2 – Records Destruction Certificates
RESOLUTION NO. 2025-037
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CORONA, CALIFORNIA, AUTHORIZING THE
DESTRUCTION OF CERTAIN OBSOLETE RECORDS.
WHEREAS, City staff has compiled a list of records and files with obligatory retention periods; and
WHEREAS, this list is on file with the City Clerk and available for inspection; and
WHEREAS, items past the obligatory retention period are obsolete and no longer required; and
WHEREAS, Section 34090 of the Government Code of the State of California authorizes the destruction of City records without the necessity of the City retaining copies thereof after the same are no longer required, upon the approval of the City Council and with the written consent of the City Attorney; and
WHEREAS, the City Council has approved a general policy for the disposal of public records by Resolution No. 89-157 and for Police records by Resolution No. 2014-08; and WHEREAS, written consent for the annual destruction of certain obsolete City records can be viewed at the City Clerk’s Office.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF CORONA, CALIFORNIA, that it hereby authorizes the destruction and disposal of the City records.
PASSED, APPROVED AND ADOPTED this 21st day of May, 2025.
Mayor of the City of Corona, California
ATTEST:
City Clerk of the City of Corona, California
4 CERTIFICATION
I, Sylvia Edwards, City Clerk of the City of Corona, California, do hereby certify that the foregoing Resolution was regularly passed and adopted by the City Council of the City of Corona, California, at a regular meeting thereof held on the 21st day of May, 2025 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAINED:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Corona, California, this 21st day of May, 2025.
City Clerk of the City of Corona, California
[SEAL]
DATE: 05/21/2025
TO: Honorable Mayor and City Council Members
FROM: City Manager’s Office
2025-214
REQUEST FOR CITY COUNCIL ACTION
SUBJECT:
UPDATED DONATION AND SPONSORSHIP POLICY
EXECUTIVE SUMMARY:
This staff report asks the City Council to approve a Donation and Sponsorship Policy.
RECOMMENDED ACTION:
That the City Council approves the proposed Donation and Sponsorship Policy.
BACKGROUND & HISTORY:
The City has historically received various forms of donations and sponsorships from community members, local businesses, and outside organizations. However, these contributions have not been governed by a consistent policy framework. In response, staff have developed a policy to bring clarity, transparency, and efficiency to the process of receiving and managing donations and sponsorships. The Donation and Sponsorship Policy (Policy) will set guidelines for accepting donations and reviewing sponsorships in addition to serving as a foundation for future outreach and engagement with potential donors and sponsors.
ANALYSIS:
The Policy applies to both donations and sponsorships for programs, events, and capital improvements. For donations, the policy identifies two categories: general donations (for City-wide needs) or restricted donations (for specific departments, locations, or purposes). Unlike sponsorships, donors will not receive marketing, promotional, or other
tangible benefits in exchange for their individual contribution. However, the City may choose to recognize donors as a group in some manner as deemed appropriate. For sponsorships, the Policy identifies how sponsors may support programs, events, or capital improvements and be recognized commensurate with their sponsorship level.
Specific sponsorship recognitions will be determined by the recipient City department.
Recognition will not include naming rights as that will continue to be governed by City Policy 06400.001 (City Property Naming Rights and Honorary Naming).
The Policy also provides a framework for reviewing donations and sponsorships from regulated Age-Restricted Businesses. These businesses require customers to be of a certain age to purchase their products or services, including but not limited to alcohol retailers, cannabis dispensaries, and tobacco and vape shops. These businesses operate under specific legal and regulatory requirements. Through this policy, these businesses may provide general or restricted donations. They may also sponsor programs/events only if they primarily serve adult audiences (defined as at least 71.6% of participants being 21 or older) and are subject to additional review.
Finally, the Policy provides the City with discretion to accept, reject, or discontinue any donation or sponsorship. Generally, the City will not accept or maintain donations or sponsorships that are not in the best interest of the City. Additionally, the City will not accept donations or sponsorships from businesses defined as adult businesses under Section 17.41.020 of the Corona Municipal Code. These businesses are separate from Age-Restricted Businesses as defined within the policy.
On May 7, 2025, the City Council reviewed the first draft of the Policy. As part of their feedback, the Council requested that staff add language to the policy indicating that the City would not accept or maintain sponsorships from political groups. The updated Donation and Sponsorship Policy includes the following sentence as part of Section 4.4C:
“The City will not accept or maintain sponsorships from political parties, elected officials, and politically oriented causes or campaigns.”
In conclusion, the proposed Policy supports a consistent and strategic approach to managing external contributions while safeguarding the City and community interests.
Adopting this policy positions the City to build stronger partnerships with our community and corporate stakeholders and provides a consistent framework for doing so.
FINANCIAL IMPACT:
There is no financial impact associated with the recommended action.
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 if it can be seen with certainty that there is no possibility the activity in question may have a significant effect on the environment. Adopting a Corporate and Community Giving Policy is an administrative action and does not involve physical changes to the environment or
approval of any project that could impact environmental resources. Therefore, this policy is not subject to CEQA, and no further environmental analysis is required.
PREPARED BY: NICOLE MCDANIEL, ASSISTANT TO THE CITY MANAGER REVIEWED BY: JUSTIN TUCKER, ASSISTANT CITY MANAGER
ATTACHMENTS:
1. Exhibit 1 – Updated Donation and Sponsorship Policy
(CITY ATTY: 11-16)
JAMIER\14000.15009\10308338.5
City Council Policy
ARTICLE I - PURPOSE
This policy establishes guidelines for the solicitation, acceptance, and recognition of donations and sponsorships to support the City of Corona’s programs, events, and capital improvements. This policy ensures transparency, fairness, and alignment with the City’s values and goals.
Section 1.2 Superseded Policies
This policy supersedes and replaces the following policies, which are hereby eliminated in their entirety and are of no further force and effect:
None
ARTICLE II - DEFINITIONS AND SCOPE
Section 2.1 Definitions
For purposes of this policy, the following definitions shall apply:
A. Capital Improvement. “Capital improvement” means a long-term investment of funds to improve, repair, replace, or construct an asset, facility, or public infrastructure.
Title: Donation and Sponsorship Policy
Administered By: City Manager’s Office
Policy No. Issue
Date
Revision
Date
Department
Head Approved
City Manager
Approved
Mayor
Approved
N/A
Administrative Policy
Donation and Sponsorship Policy
Administered by City Manager’s Office
(CITY ATTY: 11-16)
JAMIER\14000.15009\10308338.5
B. Donation. “Donation” means a voluntary contribution of money, goods, or services to the City without expectation of marketing or other benefits. A donation may be either a general donation or a restricted donation.
C. Donor. “Donor” means a person or other legal entity that provides a donation to the City.
D. General Donation. “General donation” means a donation to the City without any limitations being placed upon its use.
E. In-Kind Contribution. “In-kind contribution” means a non-monetary donation of goods, services, or expertise provided to the City in lieu of a cash donation.
Examples include donated materials, volunteer labor, or professional services.
F. Regulated Age-Restricted Businesses. “Regulated age-restricted business” means businesses that require customers to be of a certain age to purchase their products or services, including but not limited to alcohol retailers, cannabis dispensaries, and tobacco and vape shops. These businesses operate under specific legal and regulatory requirements. For purposes of this policy, “regulated age-restricted business” does not include adult businesses as defined under Section 17.41.020 of the Corona Municipal Code.
G. Restricted Donation. “Restricted donation” means a donation designated at the donor’s request for a particular City department, location, or purpose.
H. Sponsor. “Sponsor” means a person or other legal entity that proposes a sponsorship to the City for a program, event or capital improvement.
I. Sponsorship. “Sponsorship” means a financial or in-kind contribution to the City for an event, program or capital improvement project in exchange for specific marketing or promotional benefits.
Section 2.2 General Scope
Unless otherwise stipulated herein, this policy applies to all donors, sponsors, and City employees. All such donors, sponsors, and employees shall comply with the provisions outlined in this policy. Except as provided in this policy, all businesses, individuals, and organizations may be eligible to provide a donation or sponsorship to the City; however, for sponsorships, priority will be given to persons, businesses and other entities residing
Administrative Policy
Donation and Sponsorship Policy
Administered by City Manager’s Office
(CITY ATTY: 11-16)
JAMIER\14000.15009\10308338.5
or operating within the City of Corona. It is the responsibility of all supervisors to ensure that the provisions outlined in this policy are enforced for those City employees under their authority.
Section 2.3 Exemptions from Scope
None.
ARTICLE III – DONATION AND SPONSORSHIP GUIDELINES
Section 3.1 General Guidelines
A. Acceptance. Donations and sponsorships do not become the property of the City until accepted by the City consistent with this policy and applicable law.
B. No Professional Advice. The City does not provide legal, accounting, tax or other similar advice to donors or sponsors. Each donor or sponsor is responsible for ensuring their proposed donation or sponsorship meets and furthers the donor’s or sponsor’s charitable, financial, and estate planning goals.
C. City Business. The donation or sponsorship must be used for official City business, and not for political activities or other personal business.
D. FPPC Reporting. If required, the City will report a donation made to the City to the Fair Political Practices Commission (“FPPC”) in accordance with the timelines and directives described in title 2, section 18944 of the California Code of Regulations.
E. Elected Official Behest. If a donation to the City is made at an elected City official’s behest from a single source in a calendar year, and the donation meets or exceeds the amount established by the FPPC, the elected City official must file a FPPC Form 803 with the City Clerk disclosing this information.
F. Conflicts. The City shall maintain the public trust and avoid any potential conflicts of interest when considering donation or sponsorship offers and opportunities.
G. No Endorsements. Acceptance of a donation or sponsorship does not imply the endorsement of any individual, entity or product by the City or City officials.
Section 3.2 Donations
Administrative Policy
Donation and Sponsorship Policy
Administered by City Manager’s Office
(CITY ATTY: 11-16)
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A. Donors. Individuals, businesses, or other organizations may make donations to the City.
B. Types. Donations may be made as general donations or restricted donations.
1. General Donations: Will support the areas of greatest need for the City.
2. Restricted Donations: Will be used for the City department, location or purpose specified by the donor.
C. No Donor Benefits. A donor will not receive marketing, promotional, or other direct benefits from the City in exchange for their donation.
D. Possible Recognition. The City may recognize donors through appreciation events or acknowledgments, as deemed appropriate by the City in its sole discretion.
Section 3.3 Sponsorships
A. Programs and Events.
1. Sponsors. Individuals, businesses, or other organizations may sponsor City programs and events.
2. Types of Programs and Events. The City will determine the types of programs and events for which it will offer sponsorship opportunities.
Sponsors may select which of these they would like to sponsor.
3. Sponsor Benefits. The sponsorship benefits for programs and events are as follows: (a) sponsors will receive marketing and promotional benefits for their sponsorships, as determined by the City in its sole discretion; and (b) the level of benefits provided will correspond to the sponsorship amount and agreement between the sponsor and the City, if applicable.
B. Capital Improvements.
1. Sponsors. Individuals, businesses, or other organizations may sponsor City capital improvements.
Administrative Policy
Donation and Sponsorship Policy
Administered by City Manager’s Office
(CITY ATTY: 11-16)
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2. Types of Capital Improvements. The City will determine the types of capital improvements for which it will offer sponsorship opportunities. Sponsors may select which of these they would like to sponsor.
3. Sponsor Benefits. The sponsorship benefits for capital improvements are as follows: (a) sponsors will receive recognition for their sponsorship of the capital improvement, as determined by the City in its sole discretion; and (b) the level and type of recognition will correspond to the sponsorship amount and agreement between the sponsor and the City, if applicable.
4. Naming Rights Not Included. Naming rights are governed by City Policy 06400.001 (City Property Naming Rights and Honorary Naming).
Accordingly, this policy does not cover naming rights and no naming rights shall be granted in connection with a sponsorship for a capital improvement project.
Section 3.4 Regulated Age-Restricted Businesses
A. Donations. Regulated age-restricted businesses may provide general donations or restricted donations to the City.
B. Sponsorships – Adult Audiences. Certain regulated age-restricted businesses may provide sponsorships for programs, events, or capital improvement projects that primarily serve adult audiences. The City will, in its sole discretion and in compliance with local, state, and federal laws, determine which regulated agerestricted businesses may provide sponsorships and if the potentially sponsored program, event, or capital improvement project primarily serves an adult audience.
Generally, an adult audience is one where at least 71.6% of the audience is reasonably expected to be 21 years of age or older.
C. Additional Review. Donations and sponsorships from regulated age-restricted businesses may be subject to additional review to ensure compliance with state and federal law, in addition to City policies, as determined by the City in its sole discretion.
ARTICLE IV – POLICY ADMINISTRATION
Section 4.1 Procedure for Acceptance
Administrative Policy
Donation and Sponsorship Policy
Administered by City Manager’s Office
(CITY ATTY: 11-16)
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The City Manager, or their designee, is authorized to accept or reject donations and sponsorships that are consistent with this policy.
Section 4.2 City Discretion
The City retains the right to accept or decline any sponsorship or donation, in its sole and absolute discretion.
Section 4.3 Agreements or Acknowledgements
Sponsorships and donations may be required to be documented through formal agreements or acknowledgments, as determined by the City in its sole and absolute discretion.
Section 4.4 Discontinuation
A. City Discretion. The City reserves the right, in its sole and absolute discretion, to discontinue or terminate any sponsorship or donation relationship at any time.
B. Follow-Up. In cases where a sponsorship or donation relationship is discontinued or terminated, the City will determine an appropriate course of action to address any remaining obligations or acknowledgments, as well as whether to return any money or other consideration already provided.
C. Disallowed Sponsors and Donors. The City will not accept or maintain sponsorships or donations that are inconsistent with the City’s goals and objectives or are otherwise not in the best interest of the City. The City reserves the right, in its sole and absolute discretion, to determine if a sponsorship or donation conflicts with the City’s goals and objections or is not in the best interest of the City. The City will not accept or maintain sponsorships or donations from businesses defined as adult businesses under Section 17.41.020 of the Corona Municipal Code, as determined by the City in its sole and absolute discretion. The City will not accept or maintain sponsorships from political parties, elected officials, and politically oriented causes or campaigns.
PRIOR VERSIONS
ISSUED: N/A
REVISED: N/A
DATE: 05/21/2025
TO: Honorable Mayor and City Council Members
FROM: Utilities Department
2025-208
REQUEST FOR CITY COUNCIL ACTION
SUBJECT:
PUBLIC HEARING REGARDING THE UTILITIES DEPARTMENT WILDFIRE
MITIGATION PLAN
EXECUTIVE SUMMARY:
This staff report asks the City Council to hold a public hearing regarding the Utilities Department Wildfire Mitigation Plan and receive and file the Wildfire Safety Advisory Board notification for 2025.
RECOMMENDED ACTION:
That the City Council:
a. Hold a public hearing regarding the Utilities Department Wildfire Mitigation Plan. b. Receive and file the 2025 Wildfire Safety Advisory Board notification for the Utilities Department Wildfire Mitigation Plan.
BACKGROUND & HISTORY:
In 2008, the California Public Utilities Commission (CPUC) initiated a proceeding to address fires related to electric utility infrastructure. This proceeding aimed to establish new industry standards that would reduce the risk of electric line-ignited wildfires, with a focus on areas of the state where wildfire risks are elevated.
In 2016, Governor Brown signed Senate Bill (SB) 1028, which required publicly owned utilities (POUs) to identify additional wildfire mitigation measures that could be taken if the POU’s governing board found that its overhead electric lines and equipment posed a significant risk of causing a catastrophic wildfire. SB 1028 required that the POU’s governing board base this determination on “historical fires and local conditions” and consult with local fire departments and other entities with responsibilities to control wildfires within the relevant area. These requirements were specified in the newly added Public Utilities Code (PUC) Section 8387.
In 2018, the CPUC completed the development of a statewide Fire Threat Map that designates areas of the state that have an elevated risk of electric line-ignited wildfires.
This map incorporated historical fire data, fire-behavior modeling, fuel assessments, weather modeling, and a host of other factors. The CPUC’s Fire Threat Map includes three tiers of fire threat risk. Tier 1 consists of areas that have the lowest risks. Tier 2 consists of areas where there is an elevated risk for destructive line-ignited wildfires.
Finally, Tier 3 consists of areas where there is an extreme risk for destructive electric lineignited wildfires.
The Utilities Department (UD) staff reviewed the CPUC’s Fire Threat Map and determined that the City does not have any overhead electric utility infrastructure located in an area designated as either Tier 2 (elevated risk) or Tier 3 (extreme risk). The UD has electric utility infrastructure in a Tier 1 area that includes overhead electric lines, consisting of 3 poles spanning roughly 78 feet and totaling approximately 105 linear feet of overhead cable, including the dive to underground cable. Staff also reviewed historical fire data and local conditions. Based on this review, staff concluded the UD’s electric lines and equipment have minimal overhead exposure and do not pose a significant wildfire risk.
On September 19, 2018, the City Council adopted Resolution 2018-099, which adopted staff’s recommendation and found that UD’s overhead electric lines and equipment did not pose a significant risk of causing a catastrophic wildfire. On May 15, 2024, the City Council adopted Resolution No. 2024-026 adopting the most recent version of the Electric Utility Wildfire Mitigation Plan (WMP). Under SB 1028, UD was not required to identify any additional wildfire mitigation measures.
In 2018, Governor Brown signed SB 901, which addressed a wide range of wildfire prevention, response, and recovery issues. SB 901 substantially revised PUC Section 8387, eliminating the prior process established by SB 1028 and requiring all POUs, regardless of size or wildfire risk, to develop a wildfire mitigation plan. Under the amended PUC Section 8387, all POUs must present a wildfire mitigation plan annually to their governing board. PUC Section 8387(b)(2) specifies the topics that must be addressed in the POU’s wildfire mitigation plans, which include:
the responsibilities of the persons tasked with executing the plan a description of the POU’s wildfire mitigation objectives, preventative strategies, and programs
a description of the metrics the POU will use to evaluate the wildfire mitigation plan’s performance and a discussion of how those metrics informed the current wildfire mitigation plan
protocols for disabling reclosers and de-energizing portions of the electrical system procedures for notifying customers who may be impacted by the de-energizing of electrical lines
plans for vegetation management and inspections
identification, description, and prioritization of all wildfire risks within the POU’s service territory
identification of any area in the POU’s service territory that has a higher wildfire risk than is identified in a commission fire threat map a methodology for identifying and presenting enterprise-wide safety and wildfirerelated risk a statement of how the POU will restore service after a wildfire a description of the processes and procedures the POU will use to monitor and audit the implementation of the wildfire mitigation plan, identify any deficiencies in the plan and correct them, and monitor and audit the effectiveness of electrical line and equipment inspections.
SB 901 requires POUs to present their WMP at an appropriately noticed public meeting open to public comments. The POU must verify that the WMP complies with all applicable rules, regulations, and standards.
In 2019, SB 1054 and SB 111 were enacted. SB 111 created a new state agency called the California Wildfire Safety Advisory Board (WSAB). SB 1054 requires that POUs submit their wildfire mitigation plans to the WSAB by July 1st of each year. The WSAB will then review the plans and provide comments and advisory opinions on their content and sufficiency.
ANALYSIS:
In December 2024, the WSAB issued an advisory opinion approving a change in process for POUs with no overhead lines in Tier 2 or Tier 3 areas. Pursuant to this guidance, POUs in this category may perform a simple review of their existing plan and provide notification to the WSAB that no substantive changes were required for the year. The notice must include a table with updated metrics for the prior calendar year. POUs are still required to conduct a hearing annually to present the existing plan at a public meeting.
Since the majority of UD’s electric distribution system is located underground and no overhead lines are in Tier 2 or Tier 3 areas, UD qualifies for this change in process. UD concluded that the WMP approved in 2024, which is currently available on the City’s website, meets all required criteria as provided in PUC Section 8387. Because no substantive changes are required in 2025, UD will present the existing plan (Exhibit 1) at this public hearing and will provide a notification to the WSAB along with updated metrics (Exhibit 2) by July 1, 2025.
SB 901 also requires that POUs have their plan reviewed by a qualified independent evaluator to assess the comprehensiveness of the plan. Pursuant to PUC Section 8387, the City of Corona Fire Department (CFD) reviewed UD’s WMP and provided a qualified independent evaluator report in 2023, which is available on the City’s website (Exhibit 3).
An additional CFD review was not required for 2024 or 2025 as no substantive changes were made to the plan in either year.
Staff requests that City Council hold a public hearing to present the existing WMP and receive and file the 2025 WSAB notification regarding UD’s WMP.
FINANCIAL IMPACT:
There is no financial impact as a result of the recommended actions.
ENVIRONMENTAL ANALYSIS:
State CEQA Guidelines Section 15061(b)(3) states that a project is exempt from CEQA if the activity is covered by the commonsense 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 is to conduct a public hearing regarding the UD Wildfire Mitigation Plan, and there is no possibility that approving these changes will have a significant effect on the environment. Therefore, no environmental analysis is required.
PREPARED BY: ERIN KUNKLE, ELECTRIC UTILITY MANAGER
REVIEWED BY: TOM MOODY, UTILITIES DIRECTOR
ATTACHMENTS:
1. Exhibit 1 – City of Corona Utilities Department Wildfire Mitigation Plan
2. Exhibit 2 – 2025 Wildfire Safety Advisory Board Notification
3. Exhibit 3 – Qualified Independent Evaluator Report
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CITY OF CORONA
UTILITIES DEPARTMENT
ELECTRIC UTILITY
WILDFIRE MITIGATION PLAN
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TABLE OF CONTENTS
I. Executive Summary ....................................................................................................................... 4 II. Utility Overview and Context ....................................................................................................... 5 A. Utility Description and Context Setting Table............................................................................. 5 B. Statutory Cross-Reference Table ................................................................................................. 7 C. Process for Utility Adoption and Submittal of Annual WMP and Opportunities for Public Comment................................................................................................................................................. 8 D. Description of where WMP Information can be found on Utility Website ..............................8 E. Purpose of the Wildfire Mitigation Plan ....................................................................................... 8 F. Organization of the Wildfire Mitigation Plan............................................................................... 9 III. Objectives of the Wildfire Mitigation Plan................................................................................. 10 a. Minimizing Sources of Ignition..................................................................................................... 10 b. Resiliency of the Electric Grid..................................................................................................... 10 c. WIldfire Response Preparation ................................................................................................... 10 IV. Roles and Responsibilities............................................................................................................ 12 A. CUD Roles and Responsibilities................................................................................................... 12 B. Coordination with Water Division............................................................................................... 14 C. Coordination with Communication Infrastructure Providers..................................................14 D. Standardized Emergency Management System .................................................................... 14 V. Wildfire Risks and Drivers Associated with Design, Construction, Operation, and Maintenance............................................................................................................................................. 17 A. Particular Risks and Risk Drivers Associated With Topographic and Climatological Risk Factors.................................................................................................................................................... 17 B. Enterprisewide Safety Risks ......................................................................................................... 18 C. Changes to CPUC Fire Threat Map ........................................................................................... 19 VI. Wildfire Preventative Strategies ................................................................................................. 19 A. High Fire Threat District ................................................................................................................ 19
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B. Weather Monitoring .................................................................................................................... 19 C. Design and Construction Standards ......................................................................................... 19 D. Vegetation Management.......................................................................................................... 20 E. Inspections.................................................................................................................................... 20 F. Workforce Training....................................................................................................................... 20 G. Recloser Policy ............................................................................................................................. 21 H. Deenergization............................................................................................................................. 21 VII. Community Outreach and Public Awareness......................................................................... 21 VIII. Restoration of Service.................................................................................................................. 21 IX. Evaluating of the Plan ................................................................................................................. 22 A. Metrics and Assumptions for Measuring Plan Performance...................................................22 Metric 1: performance metrics ........................................................................................................ 22 Metric 2: outcome metrics ............................................................................................................... 22 B. Impact of Metrics on Plan........................................................................................................... 22 C. Monitoring and Auditing the Plan ............................................................................................. 23 D. Identifying and Correcting Deficiencies in the Plan ............................................................... 23 E. Monitoring the Effectiveness of Inspections ............................................................................. 23 X. Independent Auditor .................................................................................................................. 24 XI. Exhibits........................................................................................................................................... 25
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I. EXECUTIVE SUMMARY
The City of Corona Utilities Department’s (CUD) Wildfire Mitigation Plan (WMP) details CUD’s strategies for wildfire mitigation as it relates to the electric utility. CUD plans to continue to maintain a very low level of wildfire risk in our service area. CUD’s WMP includes roles and responsibilities, risks, preventative strategies, and metrics that will help CUD evaluate and improve strategies annually.
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II. UTILITY OVERVIEW AND CONTEXT
A. UTILITY DESCRIPTION AND CONTEXT SETTING TABLE
CUD runs a small electric utility with service area of 1.405 square miles and approximately 1,844 customers. CUD’s overarching goal is to provide safe, reliable, and economic electric service to its local community. In order to meet this goal, CUD constructs, maintains, and operates its electrical lines and equipment in a manner that minimizes the risk of catastrophic wildfire posed by its electrical lines and equipment. The City facilities are nearly 100% underground with the exception of three poles spanning approximately 78 linear feet, with a total of roughly 105 linear feet of overhead cable, including the dive to underground cable in the entire system (Exhibit A).
Context-Setting Information Utility
Name
[POU]
Service Territory Size 1.405 square miles
Owned Assets ☐ Transmission ⮽Distribution ☐ Generation
Number of Customers Served 1,844 customer accounts
Population Within Service Territory 6,306* people
*Estimated based on US Census Bureau data
Customer Class Makeup – Number of Accounts) 69.74% Residential;
29.77% Commercial/Government;
0.49% Industrial
Customer Class Makeup – Share of Total Load
(MWH)
9.44% Residential;
55.62% Commercial/Government;
34.94% Industrial
Service Territory
Location/Topography13
1.39% Agriculture
0% Barren/Other
0% Conifer Forest
0% Conifer Woodland
0% Desert
0% Hardwood Forest
10.42% Hardwood Woodland
16.25% Herbaceous
7.76% Shrub
63.29% Urban
0.89% Water
Service Territory
Wildland Urban Interface14
(based on total area)
20.44% Wildland Urban Interface;
0% Wildland Urban Intermix;
Percent of Service Territory in CPUC High Fire
Threat Districts (based on total area)
⮽Includes maps
Tier 2: 39.45%
Tier 3: 7.77%
Prevailing Wind Directions & Speeds by Season ⮽Includes maps
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Miles of Owned Lines Underground and/or
Overhead
Overhead Dist: 0.03 miles
Overhead Trans: 0 miles
Underground Dist: 31.097 miles
Underground Trans: 0 miles
Percent of Owned Lines in CPUC High Fire
Threat Districts
Overhead Distribution Lines as % of Total
Distribution System
(Inside and Outside Service Territory)
Tier 2: [0]%
Tier 3: [0]%
Overhead Transmission Lines as % of Total
Transmission System
(Inside and Outside Service Territory)
Tier 2: 0%
Tier 3: 0%
Customers have ever lost service due to an IOU
PSPS event?
☐Yes ⮽No
Customers have ever been notified of a
potential loss of service to due to a forecasted
IOU PSPS event?
⮽Yes ☐No
Has developed protocols to pre-emptively shut
off electricity in response to elevated wildfire
risks?
☐ Yes ⮽ No
Has previously pre-emptively shut off electricity
in response to elevated wildfire risk?
☐ Yes ⮽No
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B. STATUTORY CROSS-REFERENCE TABLE
Statutory Expectation Section
An accounting of the responsibilities of persons responsible for executing the plan. Section IV A The objectives of the wildfire mitigation plan. Section III A description of the preventive strategies and programs to be adopted to minimize the risk of electrical lines and equipment causing catastrophic wildfires, including consideration of dynamic climate change risks.
Section IV D
Section VI
A description of the metrics the City of Corona plans to use to evaluate the wildfire mitigation plan's performance and the assumptions that underlie the use of those metrics. Section IX A
A discussion of how the application of previously identified metrics to previous wildfire mitigation plan performances has informed the wildfire mitigation plan. Section IX B Protocols for disabling reclosers and deenergizing portions of the electrical distribution system that consider the associated impacts on public safety, as well as protocols related to mitigating the public safety impacts of those protocols, including impacts on critical first responders and on health and communication infrastructure. Section VI G Appropriate and feasible procedures for notifying a customer who may be impacted by the deenergizing of electrical lines. The procedures shall direct notification to all public safety offices, critical first responders, health care facilities, and operators of telecommunications infrastructure with premises within the footprint of potential deenergization for a given event. Section VI H Plans for vegetation management. Section VI D
Plans for inspections of the electrical infrastructure. Section VI E A list that identifies, describes, and prioritizes all wildfire risks, and drivers for those risks, throughout the City of Corona's service territory. The list shall include, but not be limited to, both of the following: (i) Risks and risk drivers associated with design, construction, operation, and maintenance of the local publicly owned electric utility's or electrical cooperative's equipment and facilities.
(ii) Particular risks and risk drivers associated with topographic and climatological risk factors throughout the different parts of the City of Corona's service territory. Section V Identification of any geographic area in the City of Corona's service territory that is a higher wildfire threat than is identified in a commission fire threat map, and identification of where the commission should expand a high fire-threat district based on new information or changes to the environment. Section V C A methodology for identifying and presenting enterprise-wide safety risk and wildfirerelated risk. Section V B A statement of how the City of Corona will restore service after a wildfire. Section VIII
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A description of the processes and procedures the City of Corona shall use to do all of the following: (i) Monitor and audit the implementation of the wildfire mitigation plan. (ii) Identify any deficiencies in the wildfire mitigation plan or its implementation and correct those deficiencies. (iii) Monitor and audit the effectiveness of electrical line and equipment inspections, including inspections performed by contractors, that are carried out under the plan, other applicable statutes, or commission rules.
Section IX C
Section IX D
Section IX E
C. PROCESS FOR UTILITY ADOPTION AND SUBMITTAL OF ANNUAL WMP
AND OPPORTUNITIES FOR PUBLIC COMMENT
Corona City Council evaluated both resolution 2024-026 adopting the Wildfire Mitigation Plan and the City of Corona Fire Department’s qualified independent evaluator report at the May 15, 2024 City Council Meeting. A properly noticed public hearing was conducted, and all persons interested were given an opportunity to speak.
D. DESCRIPTION OF WHERE WMP INFORMATION CAN BE FOUND ON
UTILITY WEBSITE
To locate CUD’s Wildfire Mitigation Plan on the City’s website www.coronaca.gov, select “Government” on the main menu. Under Departments/Divisions, choose “Utilities Department” to navigate to the Utilities Department webpage. Select “About Us” on the main menu. Under Services, select “Electric Service” then scroll down to the Wildfire Mitigation Plans section. The search bar may also be used by searching “Wildfire Mitigation Plan”.
E. PURPOSE OF THE WILDFIRE MITIGATION PLAN
CUD is a department within the City of Corona. CUD’s electric supply system is located nearly 100% underground in conduit and vaults. Historically, undergrounded electric lines have not been associated with catastrophic wildfires. The undergrounding of electric lines serves as an effective mitigation measure to reduce the potential of powerline ignited wildfires. Based on a review of local conditions and historical fires, CUD has determined that its electrical lines and equipment do not pose a significant risk of catastrophic wildfire.
Despite this low risk, CUD takes appropriate actions to help its region prevent and respond to the increasing risk of devastating wildfires.
In its role as a public agency, CUD closely coordinates with other local safety and emergency officials to help protect against fires and respond to emergencies. In the City of Corona’s 2020- 2040 General Plan, the following goals address wildfire safety and prevention:
• Goal PS-8
o Ensure that there is an adequate service level of fire protection and suppression services provided for all residents, visitors, and businesses throughout the City of Corona to meet community expectations and budgetary resources for safety.
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• Goal PS-9
o Through fire prevention and educational efforts, promote participation, voluntary compliance, and community awareness of fire safety issues in order to reduce the incidence and severity of fire and related emergencies and loss. • Goal PS-10
o Reduce fire risk to life and property through effective land use planning and compliance with federal, state, local laws, ordinances, and standards.
In the City of Corona’s Local Hazard Mitigation Plan (LHMP), the following strategies and goals are listed as high priorities for wildfire mitigation:
• Public education on wildfire defense
• Code enforcement
• Codes prohibiting fireworks
• Fuel modification/removal
• Maintaining catch basins
In its role as a utility, CUD follows all applicable design, construction, operation, and maintenance requirements that reduce safety risks associated with its system. This Wildfire Mitigation Plan describes the safety-related measures that CUD follows to reduce its risk of causing wildfires.
F. ORGANIZATION OF THE WILDFIRE MITIGATION PLAN
This Wildfire Mitigation Plan includes the following elements:
• Executive summary;
• Utility overview and context;
• Objectives of the plan;
• Roles and responsibilities for carrying out the plan; • Identification of key wildfire risks and risk drivers; • Description of wildfire prevention, mitigation, and response strategies and programs; • Wildfire preventative strategies;
• Description of community outreach and education, covering as appropriate communication about wildfire prevention, utility wildfire mitigation efforts and strategies, and potential de-energization and re-energization practices; • Metrics for evaluating the performance of the plan and identifying areas for improvement
• Annual and historic results for metrics; and
• Review and validation of the plan;
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III. OBJECTIVES OF THE WILDFIRE MITIGATION PLAN
A. MINIMIZING SOURCES OF IGNITION
The primary goal of this Wildfire Mitigation Plan is to describe CUD’s existing programs, practices, and measures that effectively reduce the probability that CUD electric supply system could be the origin or contributing source for the ignition of a wildfire. To support this goal, CUD regularly evaluates the prudent and cost-effective improvements to its physical assets, operations, and training that can help reduce the risk of equipment-related fires.
B. RESILIENCY OF THE ELECTRIC GRID
The secondary goal of this Wildfire Mitigation Plan is to improve the resiliency of the electric grid.
As part of the development of this plan, CUD assesses new industry practices and technologies that will reduce the likelihood of a disruption in service (frequency) and improve the restoration of service (duration of outage).
C. WILDFIRE RESPONSE PREPARATION
The third and final goal of the Wildfire Mitigation Plan is to prepare to respond quickly and efficiently to potential wildfires to minimize health and safety risks to the public and damage to property. The City of Corona has a broad communication and alert system for efficient communication during an emergency.
CUD’s distribution system is monitored remotely through a Supervisory Control and Data Acquisition (SCADA) system networked to all substations and circuits. CUD field staff utilize hard line telephones, cellular telephones, and portable radios to communicate with internal and external stakeholders during an outage or emergency. CUD’s SCADA system auto-generates notifications to field, office, and administrative staff. CUD has On-Call contractual service as well as City staff to respond in Emergency situations to facilities and expedite field response times and recovery.
The City of Corona maintains a two-way VHF mobile and base stations for communications enhanced by a repeater system to extend the coverage area. This includes three Full Simulcast repeater sites and two receive only sites in the VHF Public Safety band. The Fire Department uses the City-owned VHF Conventional Simulcast radio system. The Police Department primarily operates on the Riverside County wide PSEC system, 700/800 P-25 Phase II TDMA. The PSEC system has two sites within the city limits with three other sites that contribute to the City’s coverage. The Fire Battalion Chief vehicles are also equipped with PSEC radios on the PD talk groups. As a fail-over the PD can also revert to the City’s VHF system. The City VHF system has four simulcast channels, two dedicated for Fire’s use and two for the Police and other’s use. The PSEC system is a trunked system and Corona PD has ten Talk Groups assigned to it.
The City of Corona owns multiple satellite phones located in the EOC storage room. Corona PD does have an Amateur Radio user group they work with under Civil Emergency circumstances, which operates on HAM radio frequencies in support of governmental emergency
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communications. The frequencies can augment existing systems and establish communication links with otherwise inaccessible areas. They are also capable of sending live video and audio from an incident site to our City’s emergency operations center via HAM radio and through audiovisual capability. Additionally, all City employees have a Government Emergency Telecommunication Card (GETS) and Wireless Priority Service (WPS) which allows for both the universal GETS access number and a Personal Identification Number (PIN). This will allow cellular communications network priority in an emergency.
At the county level, a Riverside County Emergency Operations Center (EOC) talk group is programmed into the Omniquest radio and is used to communicate with EOCs within Riverside County during a disaster or emergency. The City of Corona has connectivity to access the Low Band Western Riverside County Disaster Net radios to communicate with all EOCs within Riverside County during a disaster or emergency. This system uses low frequency bands and access to several back up channels in case of an outage.
CUD adheres to California Public Utility Commission GO 95, 165, and 174 for all system infrastructure inspection, maintenance, and reporting.
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IV. ROLES AND RESPONSIBILITIES
A. CUD ROLES AND RESPONSIBILITIES
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The City of Corona is a general law city that operates under a Council-Manager form of government. The City is governed by a five-member City Council. The Five Council Members (3 Council Members, a Vice Mayor and the Mayor) are elected by district to four-year terms. The Mayor and/or Vice Mayor are not directly elected to the position rather, Council members are appointed to the positions for a one-year term, the Vice Mayor progresses to the position of Mayor. Volunteer Commissions and Boards, as well as Citizen Advisory Committees help guide the Council in its decisions. Commissioners are citizen volunteers, appointed by the City Council.
The Council appoints the City Manager, who oversees the daily operations of the City. The Director of Utilities manages the Electric Utility under the general direction of the City Manager.
The Electric Utility Manager and Maintenance Manager report directly to the Director of Utilities.
In the event of an emergency, emergency personnel would be contacted. This effort would be coordinated by the Emergency Manager, utilizing updated contacts lists citywide. The Director of Utilities would be notified along with the Assistant Director of Utilities, Maintenance Manager and Electric Utility Manager. The Director of Utilities would notify the City Manager and City Council. The Emergency Operations Center (EOC) may be activated, and procedures would be followed as referenced in the Standardized Emergency Management System section below.
CUD’s electrical infrastructure is nearly 100% underground in a flat, urban service area. CUD utility staff and its electrical contractors have the following responsibilities regarding fire prevention, response and investigation:
• Conduct work in a manner that will minimize potential fire dangers. • Conduct work in accordance with industry standards and NFPA 70E. • Take all reasonable and practicable actions to prevent and suppress fires resulting from CUD electric facilities by performing routine maintenance of all distribution facilities, conducting seasonal weed abatement to maintain standard clearances at at-risk sites, and perform routine fire and life safety inspections with the Corona Fire Department. • Follow federal and state guidelines, including industry standards established by the California Public Utilities Commission.
• Coordinate with the City of Corona Fire Department to ensure that appropriate preventative measures are in place and to implement CUD’s Wildfire Mitigation Plan. • Coordinate with City Public Information Officer and Emergency Manager to disseminate safety warnings, provide emergency public information, and evacuation notices to local residents.
• Immediately report fires, pursuant to existing CUD practices and the requirements of this Wildfire Mitigation Plan.
• Take corrective action when observing or having been notified that fire protection measures have not been properly installed or maintained. CUD conducts annual inspections to ensure that measures are in place.
• Ensure compliance with relevant federal, state, and industry standard requirements. • Ensure that wildfire data is appropriately collected. • Maintain adequate training programs for all relevant employees and contractors.
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B. COORDINATION WITH WATER DIVISION
The Water Division of CUD works closely with the Fire Department to ensure that water is available for fire-fighting purposes. In the event of a wildfire, the Water Division is proactive in filling the affected and surrounding zones with water. CUD has six diesel engine-powered emergency standby trailer pumps that are only to be used in the event of a fire or other natural disaster that could render a booster pumping station without power or mechanically inoperable.
Bypass connection points have been installed at nine critical booster stations to isolate the station and continue to pump by means of a portable diesel engine-driven booster pump. These pumps are mounted on trailers and kept at the Water Division’s Desalter Water Treatment Plant, ready for deployment. Additionally, CUD has four percolation ponds with available water to be used by helicopters for fire-fighting purposes.
C. COORDINATION WITH COMMUNICATION INFRASTRUCTURE
PROVIDERS
CUD has three electric poles and does not have joint-use poles.
D. STANDARDIZED EMERGENCY MANAGEMENT SYSTEM
As a local governmental agency,1 CUD adheres to the National Incident Management System (NIMS). CUD has planning, communication, and coordination obligations pursuant to the California Office of Emergency Services’ Standardized Emergency Management System (“SEMS”) Regulations,2 adopted in accordance with Government Code section 8607. The SEMS Regulations specify roles, responsibilities, and structures of communications at five different levels: field response, local government, operational area, regional, and state.3 Pursuant to this 1 As defined in Cal. Gov. Code § 8680.2.
2 19 CCR § 2407.
3 Cal. Gov. Code § 2403(b):
(1) “Field response level” commands emergency response personnel and resources to carry out tactical decisions and activities in direct response to an incident or threat. (2) “Local government level” manages and coordinates the overall emergency response and recovery activities within their jurisdiction.
(3) “Operational area level” manages and/or coordinates information, resources, and priorities among local governments within the operational area and serves as the coordination and communication link between the local government level and the regional level. (4) “Regional level” manages and coordinates information and resources among operational areas within the mutual aid region designated pursuant to Government Code §8600 and between the operational areas and the state level. This level along with the state level coordinates overall state agency support for emergency response activities. (5) “State level” manages state resources in response to the emergency needs of the other levels, manages and coordinates mutual aid among the mutual aid regions and between the regional
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structure, CUD annually coordinates and communicates with the relevant safety agencies as well as other relevant local and state agencies. When activated, CUD serves as the Infrastructure & Utilities Branch under the Operations Section Chief as part of the City of Corona’s Emergency Operations Center. In the event the incident centered on CUD facilities, CUD would serve as the Operations Section Chief.
The Emergency Operation Center activation procedures, levels, section and position specific roles and responsibilities are outlined in the City of Corona’s Emergency Operation Plan (EOP).
CUD participates in training and exercises to the EOP on an annual basis.
The City of Corona is a part of the Riverside County Operational Area coordinating with Riverside County Emergency Management (RivCo EMD). A significant amount of preparation is done through advanced planning at the local county level through partnerships, including the coordination of public, private, and nonprofit organizations. RivCo EMD is guided by the California Office of Emergency Services, Southern Region. The Operational Area includes local and regional organizations that bring relevant expertise to wildfire prevention and recovery planning processes. These participants include:
level and state level, and serves as the coordination and communication link with the federal disaster response system.
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Agency/ Dept. Mailing Address Contact Phone Fax
AMR American Medical Response 879 Marlborough Ave.
Riverside, CA. 92507 951.782.5234 951.782.5617
AMR American Medical Response 879 Marlborough Ave.
Riverside, CA. 92507 Dispatch 877.267.6622 951.782.5605 Communications Providers in Corona
Internet
AT&T- Internet Service 888.613.6330,
prompts 3 & 2
Impulse Adv
Communication 800.456.5800
Land Lines AT&T 562.618.1221
Internet Phone Service Impulse Advanced
Communications 800.456.5800
Cable Service in Corona
17777 Center Court Dr,
Suite 800
Cerritos, CA 90703
Spectrum Cable Office: 562.677.0310
Cell: 714.715.3581
Cell Service
Verizon 951.473.7551
AT&T 562.618.1221
City of Corona: Fire: Emergency
Services Division
735 Public Safety Way,
Corona, CA 92878
Emergency Services
Manager 951.496.1299 951.736.2220
City of Corona: Utility 755 Public Safety Way,
Corona, CA 92878 Director of Utilities 951.736.2477 951.736.2455 City of Corona: Utility 755 Public Safety Way,
Corona, CA 92878 Electric Utility Manager 951.817.5795 951.736.24555 City of Corona: Special Districts 400 S. Vicentia Ave., Corona, CA 92882
Division Manager- Public
Works 951.817.5765 951.279.3627
City of Corona: Fire Dept. 735 Public Safety Way,
Corona, CA 92878 Fire Chief 951.279.3536 951.736.2497
City of Corona: Police Dept. 730 Public Safety Way,
Corona, CA 92878 Police Chief 951.817.5787
City of Corona: Traffic &
Transportation
400 S. Vicentia Ave.,
Corona, CA 92882 Public Works 951.736.2266
City of Corona: Facilities
Management
755 Public Safety Way,
Corona, CA 92878 Division Manager 951.736.2443
US Forest Service: Cleveland
National Forest Corona Fire Station
1148 E 6th St, Corona,
CA 92879 951.371.1004
Caltrans Corona Yard 842 El Sobrante Rd.,
Corona, CA 92879 Facility Supervisor Office: 951.272.0628 Cell: 951.314.3630
Corona Norco Unified School District 2820 Clark Avenue, Norco, CA 92860 Maintenance Supervisor 951.736.5000
Corona Regional Hospital 800 S. Main St., Corona,
CA 92882 Facilities 951.737.4343
Riverside County: Dept. of
Environmental Health
4065 County Circle
Riverside, CA. Deputy Director 951.358.5172 951.358.5017 Riverside County: Dept. of
Environmental Health
4065 County Circle
Riverside, CA.
Supervising Environmental
Health Specialist 951.358.5172 951.358.5017
Riverside County: Dept. of
Environmental Health
800 S. Sanderson Ave.
#200, Hemet, CA. 92545
Supervising Environmental
Health Specialist 951.766.2824
Riverside County: Emergency
Management Department
4210 Riverwalk Pkwy
Riverside, CA 92505
Duty Officer 951.312-5167
Riverside County: Fire Department 210 W. San Jacinto Ave.
Perris, CA 92570
Dispatch 951-940-6948
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Pursuant to the SEMS structure, CUD participates in training and exercises. Training and exercises include workshops, tabletop exercises, and field drills. A sample of topics covered include; earthquake safety, disaster response & management and active shooter. These are NIMS/SEMS/ICS compliance.
The City of Corona has specific Mutual Aid Agreements with local cities and agencies such as Riverside County, Riverside City, Orange County, Chino and the US Forest Service. The City of Corona is a participant in the California Disaster and Civil Defense Mutual Aid Agreement which allocates state resources to cope with any type of disaster.
V. WILDFIRE RISKS AND DRIVERS ASSOCIATED WITH DESIGN,
CONSTRUCTION, OPERATION, AND MAINTENANCE
A. PARTICULAR RISKS AND RISK DRIVERS ASSOCIATED WITH
TOPOGRAPHIC AND CLIMATOLOGICAL RISK FACTORS
CUD’s service territory is located almost entirely underground with the exception of three overhead poles spanning approximately 78 linear feet, with a total of roughly 105 linear feet of overhead cable, including the dive to underground cable. This small section of overhead lines is located outside of any identified high fire threat area on the maps (Exhibit C). The primary risk drivers for wildfire are the following:
• Earthquake
o Earthquakes can disrupt power lines and result in potential wildfire risk. Corona is surrounded by active geologic fault lines with the potential to generate strong ground shaking, surface fault rupture, and secondary damage including power outages. These faults include San Andreas, San Jacinto, and Elsinore. CUD manages this risk by keeping areas surrounding electrical equipment free of fuel such as weeds and brush.
• High Winds
o CUD’s service area can experience high winds, especially during a “Santa Ana” wind event. These wind events typically occur during hotter and dryer times of year when fire danger is high. Though CUD does not have any overhead power lines in high fire threat areas, the utility does connect to lines from the local Investor-Owned Utility (IOU) that run through these zones.
• Electrical Storms
o Electrical storms occur during certain times of year in the City of Corona, particularly in the Canyon area located in the vicinity of Temescal Canyon Road and Cajalco Road. These storms carry the potential for wildfire risks associated with lightning and high winds. Because CUD’s electrical system is almost entirely underground, facilities are not likely to be affected. However, CUD mitigates any risk by keeping areas surrounding electrical equipment free of fuel such as weeds and brush.
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• Extended Drought
o Droughts result in drier vegetation which creates a fuel source for wildfires. CUD does connect to overhead lines from the local IOU that must mitigate wildfire dangers associated with extended drought.
CUD prioritizes wildfire risks in the following order: Earthquake, High Winds, Electrical Storms, and Extreme Drought. Though not as frequent, earthquakes have the potential to cause the most damage depending on the severity of the quake. High Winds, Electrical Storms, and Extreme Drought are more prevalent in CUD’s service area but are less of a concern because the electrical system is mainly underground. For this reason, changing weather patterns do not affect CUD’s risk factors significantly. The potential for increased temperatures and drier climate will dry out vegetation and increase stress on trees, which may affect the local IOU that CUD connects to for power.
B. ENTERPRISEWIDE SAFETY RISKS
Wildland Fires are listed as the second highest hazard ranking for the City of Corona in the current Local Hazard Mitigation Plan (LHMP). The LHMP lists several factors that affect wildfire risk. These include weather patterns (drought, high winds, and climate change), topography, vegetation, and earthquakes.
Weather Patterns
• Drought is common in Southern California. The City of Corona frequently experiences temperatures above 90 degrees and humidity of 20 percent or less, with low amounts of rainfall throughout the year. Climate change has resulted in longer drier droughts. These types of weather patterns result in dry ground covering that turns into fuel for wildland fires. Dry brush coupled with 40-50 mile per hour “Santa Ana” winds can result in dangerous wildfire conditions.
Topography
• Topography considerably affects wildfire behavior. Steep topography can create erratic winds in canyons, which can cause wildfire to spread rapidly. The City of Corona has many surrounding hills with a history of wildfires and has experienced erratic winds and fire in the Santa Ana Canyon. Water supply in rough terrain areas such as this can be limited based on pumping and availability of electricity.
Vegetation
• The south side of the City of Corona borders the Cleveland National Forest for approximately 12 miles. The remainder of the City is bordered by a combination of heavy fuels and light flashy fuels due to frequent burning. Weather patterns and topography may be beyond our control, but vegetation as fuel for fires is within our control. CUD follows local fire guidelines to ensure that vegetation is controlled in our service area.
Earthquakes
• There are three major faults/fault zones that directly affect the City of Corona. They are the southern section of the San Andreas Fault, the Elsinore Fault Zone, and the San Jacinto Fault Zone. The Elsinore Fault Zone is the closest fault to City of Corona, as it runs adjacent to the City boundaries. The San Jacinto Fault Zone is located approximately 25 miles northeast of the City of Corona. The San Andreas Fault Zone is located approximately 35 miles northeast of the City. In 1992, the 7.3 magnitude Landers earthquake occurred on this fault. It was the largest earthquake to occur within 100
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miles of Corona. Earthquakes have the potential to cause fires that may turn into wildfires.
C. CHANGES TO CPUC FIRE THREAT MAP
No change is needed to the CPUC Fire Threat Map.
VI. WILDFIRE PREVENTATIVE STRATEGIES
A. HIGH FIRE THREAT DISTRICT
CUD directly participated in the development of the CPUC’s Fire-Threat Map,4 which designates a High-Fire Threat District. In the map development process, CUD coordinated with Southern California Edison Company (SCE) and determined that because CUD’s system is nearly 100% undergrounded, that SCE would serve as territory lead for the region served by CUD. CUD has incorporated the High Fire Threat District into its construction, inspection, maintenance, repair, and clearance practices, where applicable.
B. WEATHER MONITORING
The City of Corona Fire Department monitors current and forecasted weather data from two sources including:
• United States National Weather Service (RAWS Stations) • Cal Fire daily weather reports
In the event of high fire danger conditions (such as a red flag warning), the Fire Department may staff extra fire apparatus when warranted.
CUD practices and policies do not change based on weather conditions because nearly 100% of CUD’s system is underground, and overhead lines are not in a high fire threat area.
C. DESIGN AND CONSTRUCTION STANDARDS
CUD’s electric facilities are designed and constructed to meet or exceed the relevant federal, state, or industry standard. CUD treats CPUC General Orders (GO) 95 and 128 as a key industry standard for design and construction standards for overhead and underground electrical facilities. CUD meets or exceeds all standards in GO 95 and GO 128. Additionally, CUD monitors and follows, as appropriate, the National Electric Safety Code. CUD constructs, maintains, and operates its electrical lines and equipment in a manner that will minimize the risk of wildfire posed by those electrical lines and equipment.
4 Adopted by CPUC Decision 17-12-024.
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D. VEGETATION MANAGEMENT
CUD meets or exceeds the minimum industry standard vegetation management practices. For distribution-level facilities, CUD complies with NERC FAC-003-4, where applicable. For distribution level facilities, CUD meets: (1) California Public Resources Code section - PRC §4292; (2) California Public Resources Code section - PRC §4293; (3) GO 95 Rule 35; and (4) the GO 95 Appendix E Guidelines to Rule 35. CUD’s system is almost entirely underground and does not have trees in the vicinity of the existing overhead lines.
CUD conducts regular weed clearing at the Wholesale Distribution Access Tariff (WDAT) interconnect locations. The overhead line area is hardscape and does not require vegetation management. CUD takes pad transformer ignition risk seriously and conducts annual inspections of facilities owned by entities other than CUD. If vegetation is in need of clearing, the facility owner will be notified and expected to complete the clearing promptly.
E. INSPECTIONS
CUD meets or exceeds the minimum inspection requirements provided in CPUC GO 165 and CPUC GO 95, Rule 18. Pursuant to these rules, CUD inspects overhead lines more frequently than the other areas of its service territory. As described above, CUD currently does not have any overhead powerlines located within or near the High-Fire Threat District within the CPUC’s Fire Threat Map. However, CUD staff uses their knowledge of the specific environmental and geographical conditions of CUD’s service territory to determine if any particular areas require more frequent inspections. Infrared inspections of lines and connections are included in the annual inspection process.
If CUD staff discovers a facility in need of repair that is owned by an entity other than CUD, CUD will issue a notice to repair to the facility owner and work to ensure that necessary repairs are completed promptly.
F. WORKFORCE TRAINING
CUD has implemented work rules and complementary training programs for its workforce to prepare staff for wildfire response and help reduce the likelihood of the ignition of wildfires.
Training includes:
• Electrical Hazard Training Program
• Incident Command
• Emergency Action Plan: Crisis under Control
• Fire Safety: Safety Matters
• Heat Stress
• HazCom: Hazard Communication Standards
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G. RECLOSER POLICY
CUD only has one overhead recloser deployed in its electrical system as the system is nearly 100% underground. This recloser does not automatically reset, it must be manually reset prior to reenergizing the circuit, and therefore does not pose additional fire danger. Relay settings are not changed during certain conditions because there is not a threat of fire danger in this location.
H. DEENERGIZATION
CUD has the authority to preemptively shut off power due to fire-threat conditions, however, this option will only be used in extraordinary circumstances. Due to the extreme minimal risk of CUD’s electrical supply facilities causing a powerline ignited wildfire, CUD is not adopting specific protocols for de-energizing and customer notification for any portions of its electric distribution system. CUD will re-evaluate this determination in future updates to this Wildfire Mitigation Plan.
VII. COMMUNITY OUTREACH AND PUBLIC AWARENESS
The City of Corona’s Fire Department communicates with the Public regarding wildfire safety.
Each year in the spring, notices are sent out to property owners regarding weed and fire hazard abatement. The Fire Department has a webpage Wildfire Ready! where residents can learn about wildfire prevention and how to prepare for potential wildfires. This page includes a link to the Risk Assessment and Community Wildfire Protection Plan (CWPP). Information regarding wildfires is also available in pamphlets.
VIII. RESTORATION OF SERVICE
In the event of any power outage, the CUD Operations and the Call Center is appropriately staffed for handling of trouble calls from customers and dispatching to field personnel.
Outage support includes:
• City Outage Map Management
• Field Dispatching
• Customer Callbacks
Response Prioritization:
• First Priority: Response to imminent threats to life and/or public property • Second Priority: Removals of immediate hazards (fallen trees, power poles, etc.) • Third Priority: Clearing of arterial roadways
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• Fourth Priority: Maintenance of traffic control/closures to prevent potential accidents • Fifth Priority: Restoration of power
CUD standard practice for power restoration after any power outage is to fully isolate the circuit.
The area is patrolled for any additional potential trouble spots prior to restoration. When all areas are cleared by visual inspection, CUD restores the power.
IX. EVALUATING OF THE PLAN
A. METRICS AND ASSUMPTIONS FOR MEASURING PLAN PERFORMANCE CUD is tracking two types of metrics to measure the performance of this Wildfire Mitigation Plan:
(1) Performance Metrics; and (2) Outcome Metrics. The tracking of these metrics can be found in Exhibit G.
METRIC 1: PERFORMANCE METRICS
CUD tracks performance with two metrics:
• Inspections of above-ground, utility-owned distribution system components • Distribution Line Inspections, including routine vegetation management inspections These metrics will be based on inspections conducted on Capacitor Banks, Pad Mounted Equipment, Pad Mounted Transformers, Burd Transformers, Vaults, and evaluation of underground and aboveground electric lines. CUD plans to inspect each piece of equipment annually and conduct both infrared and vegetation management inspections of lines and connections.
METRIC 2: OUTCOME METRICS
CUD tracks the following outcome metrics:
• Outage events
• Ignitions
CUD has not had any fire ignitions to date. In future Wildfire Mitigation Plans, CUD will provide the number of fires that occurred that were less than 10 acres in size. Any fires greater than 10 acres will be individually described.
B. IMPACT OF METRICS ON PLAN
CUD has not had any fire ignitions to date. If a fire ignition were to occur, CUD will use the data to ensure that additional preventative measures are in place in the future. This may include upgrade of equipment, additional safety measures, additional vegetation management, etc.
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In 2022, CUD contracted a firm to do a full evaluation and inspection of its entire electrical infrastructure and developed a 5-year capital improvement plan for replacement of assets.
CUD has a plan in place to complete inspections of all equipment and infrared inspections of lines and connections annually.
C. MONITORING AND AUDITING THE PLAN
This Wildfire Mitigation Plan is subject to review by CUD’s City Council. CUD will present this plan to City Council on an annual basis. Additionally, a qualified independent evaluator report on this plan will be presented to the City Council once every three years.
The WSAB is currently considering a proposal that will allow small POUs with no overhead lines in high-risk fire areas to submit a letter stating that no changes have been made to the WMP rather than submitting a full plan every year. This letter would include an updated metrics table for the year. Every third year, the WMP would be fully revised. If approved, this change would take effect in 2025.
D. IDENTIFYING AND CORRECTING DEFICIENCIES IN THE PLAN
CUD has incorporated the following changes in the plan based on recommendations from the Wildfire Safety Advisory Board (WSAB).
• Updated the City’s website to make the WMP more accessible to the public. • Updated maps as requested.
• Updated metrics to be more relevant to CUD’s system.
CUD will continue to monitor regulatory requirements and data obtained through metrics to identify any deficiencies. CUD will take into consideration recommendations from the WSAB and the independent auditor when identifying deficiencies in the plan.
Based on the recommendations of its City Council, CUD will correct the identified deficiencies.
E. MONITORING THE EFFECTIVENESS OF INSPECTIONS
CUD reviews and evaluates its system reliability indices to monitor inspection and maintenance efforts. SAIDI, SAIFI, CAIDI, and MAIFI systems statistics are recorded, tracked, and evaluated with respect to SCE transmission interruptions vs. City distribution interruptions to its customers for internal reliability.
CUD’s utility maintenance management system (NexGen Asset Management System) is used to collect all data subject to GO165. All maintenance and inspection efforts are recorded and tracked in NexGen for the City electric distribution facilities. Maintenance history for each piece of equipment is archived in NexGen. Additionally, CUD’s substation inspections and maintenance program complies with GO174 guidelines as well as manufacturer specifications, standards, and recommendations. CUD performs inspections of all substation and systems
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components including recording and analysis of all alarms, heat signatures, fluid levels, meters, fuses, contacts, cable connections, breaker settings, etc.
X. INDEPENDENT AUDITOR
Public Utilities Code section 8387(c) requires CUD to contract with a qualified independent evaluator with experience in assessing the safe operation of electrical infrastructure to review and assess the comprehensiveness of this Wildfire Mitigation Plan. The independent evaluator must issue a report that is posted to CUD’s website. This report must also be presented to CUD’s City Council at a public meeting.
CUD requested a qualified independent evaluator review of the 2023 WMP by CFD which was conducted in May 2023. Recommendations from the independent evaluation were incorporated into the 2023 WMP. A qualified independent review is not required in 2024.
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XI. EXHIBITS
Exhibit A
City of Corona Utilities Department Owned Overhead Electrical Lines and Sunkist Wholesale Distribution Access Tariff (WDT 204) Equipment at Water Reclamation Facility Plant #2 652 E. Harrison Street
The only Corona owned overhead lines and equipment in the system are located within the fence line of the Corona Utilities Department’s Water Reclamation Facility Plant #2 at 652 E. Harrison Street. The overhead lines and equipment consist of 3 poles spanning approximately 78 linear feet, with a total of roughly 105 linear feet of overhead cable, including the dive to underground cable.
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Exhibit B
City of Corona Utilities Department Other Wholesale Distribution Access Tariff (WDAT) Locations
Water Reclamation Facility #1 (Clearwater) at 2205 Railroad Street (WDT124)
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Water Reclamation Facility #3 at 3855 Temescal Canyon Road (Dos Lagos)
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Corona Crossings (WDT116) at 3260 Temescal Canyon Road at Tom Barnes Street
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Corona Pointe (WDT128) at the Corona Animal Shelter 1330 Magnolia Avenue
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Exhibit C
City of Corona Utilities Department Owned Overhead Electrical Lines and Equipment Locations to CPUC Fire Threat Map
City of Corona North (section of the service area containing overhead lines) *Not located in or near high fire threat areas
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City of Corona Central
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City of Corona South
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City of Corona West
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Exhibit D
City of Corona Utilities Department Owned Overhead Electrical Lines and Equipment Locations to Wildland Urban Interface Map
City of Corona North (section of the service area containing overhead lines)
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City of Corona Central
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City of Corona South
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City of Corona West
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Exhibit E
City of Corona Vegetation Maps
City of Corona North (section of the service area containing overhead lines)
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City of Corona Central
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City of Corona South
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City of Corona West
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Exhibit F
City of Corona Wind Map
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Exhibit G
Wildfire Mitigation Plan Metrics
Performance Metrics
(Actual) (Forecast) (Forecast)
Metric type Progress metric
name
2023 2024 2025 Unit(s)
1. Above-Ground, UtilityOwned Distribution System
Components
Routine
Inspections
217 272 273 #inspections
2. Distribution Inspections Inspections 0.03
miles
0.03 miles
0.03 miles
# circuit miles
Routine Vegetation
Management
0.03 miles
0.03 miles
0.03 miles
# circuit miles
Outcome Metrics
(Actual) (Actual) (To Date)
Event Category Cause category 2022 2023 2024 Unit(s)
Outage Event Distribution 10 8 3 # outages
Ignitions Distribution 0 0 0 # ignitions
City of Corona Utilities Department • 755 Public Safety Way, Corona, CA 92878 • (951) 736-2234
May 21, 2025
Re: Notice of Public Meeting on City of Corona Wildfire Mitigation Plan Dear Wildfire Safety Advisory Board,
This letter notifies the Wildfire Safety Advisory Board (“WSAB”) that on May 21, 2025, the City of Corona (CUD) presented its existing Wildfire Mitigation Plan (“WMP”) to its City Council at a publicly noticed meeting, in accordance with Public Utilities Code section 8387(b). CUD’s WMP was most recently adopted on May 15, 2024. At the May 21, 2025 meeting, CUD provided an opportunity for public comment on its existing WMP and CUD’s City Council verified that CUD’s existing WMP complies with all applicable rules, regulations, and standards, as appropriate.
CUD does not have any overhead electric supply facilities located in or near an area of the state that is designed as “extreme” or “elevated” in the California Public Utilities Commission’s High Fire Threat District Map. In consideration of this historical wildfire risk, CUD has determined that its existing WMP adequately addresses the risk of a utility-caused, catastrophic wildfire occurring in CUD’s service territory and that no substantive changes are merited for this reporting year. CUD will continue to evaluate its existing WMP in relation to the wildfire risk posed by CUD’s system on an annual basis.
In order to provide the WSAB with information on CUD’s system and WMP performance, please find as Attachment A, an updated Informational Table, and Attachment B, an updated Metrics Table.
CUD thanks the WSAB for their review and support in helping to mitigate wildfire risks in California.
Sincerely,
Erin Kunkle
Electric Utility Manager
P: (951) 817-5795 | M: (951) 741-9643
[email protected]
City of Corona Utilities Department • 755 Public Safety Way, Corona, CA 92878 • (951) 736-2234 Attachment A
CUD 2025 Informational Table
Context-Setting Information Utility
Name
[POU]
Service Territory Size 1.405 square miles
Owned Assets ☐ Transmission ⮽Distribution ☐ Generation
Number of Customers Served 1,850 customer accounts
Population Within Service Territory 6,068* people
*Estimated based on US Census Bureau data
Customer Class Makeup – Number of Accounts) 69.73% Residential;
29.78% Commercial/Government;
0.49% Industrial
Customer Class Makeup – Share of Total Load
(MWH)
10.75% Residential;
58.08% Commercial/Government;
31.17% Industrial
Service Territory
Location/Topography13
1.39% Agriculture
0% Barren/Other
0% Conifer Forest
0% Conifer Woodland
0% Desert
0% Hardwood Forest
10.42% Hardwood Woodland
16.25% Herbaceous
7.76% Shrub
63.29% Urban
0.89% Water
Service Territory
Wildland Urban Interface14
(based on total area)
20.44% Wildland Urban Interface;
0% Wildland Urban Intermix;
Percent of Service Territory in CPUC High Fire
Threat Districts (based on total area)
⮽Includes maps
Tier 2: 39.45%
Tier 3: 7.77%
Prevailing Wind Directions & Speeds by Season ⮽Includes maps Miles of Owned Lines Underground and/or
Overhead
Overhead Dist: 0.03 miles
Overhead Trans: 0 miles
Underground Dist: 31.097 miles
Underground Trans: 0 miles
City of Corona Utilities Department • 755 Public Safety Way, Corona, CA 92878 • (951) 736-2234 Percent of Owned Lines in CPUC High Fire
Threat Districts
Overhead Distribution Lines as % of Total
Distribution System
(Inside and Outside Service Territory)
Tier 2: [0]%
Tier 3: [0]%
Overhead Transmission Lines as % of Total
Transmission System
(Inside and Outside Service Territory)
Tier 2: 0%
Tier 3: 0%
Customers have ever lost service due to an IOU
PSPS event?
☐Yes ⮽No
Customers have ever been notified of a
potential loss of service to due to a forecasted
IOU PSPS event?
⮽Yes ☐No
Has developed protocols to pre-emptively shut
off electricity in response to elevated wildfire
risks?
☐ Yes ⮽ No
Has previously pre-emptively shut off electricity
in response to elevated wildfire risk?
☐ Yes ⮽No
City of Corona Utilities Department • 755 Public Safety Way, Corona, CA 92878 • (951) 736-2234 Attachment B
CUD 2025 Metrics Table
Performance Metrics
Metric type Progress metric
name
(Actual) (Actual) (Forecast)
2023 2024 2025 Unit(s)
1. Above-Ground, UtilityOwned Distribution
System Components
Routine
Inspections
217 279 279 #inspections
2. Distribution Inspections
Inspections 0.03
miles
0.03 miles
0.03 miles
# circuit
miles
Routine
Vegetation
Management
0.03 miles
0.03 miles
0.03 miles
# circuit
miles
Outcome Metrics
(Actual) (Actual) (To Date)
Event Category Cause category 2023 2024 2025 Unit(s)
Outage Event Distribution 8 11 2 # outages
Ignitions Distribution 0 0 0 # ignitions
DATE: 05/21/2025
TO: Honorable Mayor and City Council Members
FROM: Human Resources Department
2025-213
REQUEST FOR CITY COUNCIL ACTION
SUBJECT:
PUBLIC HEARING TO PRESENT THE ANNUAL REPORT ON THE CITY'S PERSONNEL VACANCY RATES AND THE CITY’S RECRUITMENT AND
RETENTION EFFORTS
EXECUTIVE SUMMARY:
Passed in 2024, AB 2561 now mandates the annual reporting of vacant positions in California’s public agencies prior to approval of the agency’s budget. The report includes a summary of the total vacancies as of the measurement date, the percentage of total vacancies by bargaining unit, and actions the City continues to take to address personnel vacancies and promote employee retention.
RECOMMENDED ACTION:
That the City Council conduct the public hearing and receive and file this report.
BACKGROUND & HISTORY:
AB 2561 was written to address the issue of job vacancies in local government. Among other requirements, the bill mandates that public agencies present the status of vacancies and recruitment and retention efforts during a public hearing before the agency’s governing body at least once per fiscal year, prior to the adoption of the agency’s budget.
The bill was enacted into law and is codified in Government Code section 3502.3. The new law is effective January 1, 2025.
ANALYSIS:
The table below provides a summary of the total vacancies and the percentage of total vacancies by bargaining unit and for the City overall, using data as of January 9, 2025.
Moving forward, data will be gathered as of December 1st each year.
Bargaining Unit Total Positions Total Vacancies Percent Vacant CFA 122 5 4.1%
CPEA 133 15 11.3%
CPSA 34 0 N/A
CPSEA 379 50 13.2%
CSA 52 4 7.7%
EXEC 16 1 6.3%
MGMT 99 13 13.1%
Total 835 88 11%
The table above highlights the distribution of vacancies across different bargaining units within the City of Corona. The overall vacancy rate is 11%.
Recruitment and Retention Analysis:
The City recognizes the importance of prioritizing the workforce to improve efficiency and effectiveness. This is in accordance with one of the City’s six Strategic Goals, achieving a high-performing government. A few highlights of the objectives mentioned in the strategic plan include conducting annual employee engagement surveys, establishing a staff recognition program to acknowledge the outstanding efforts across the organization, and developing a new employee orientation that reinforces organizational values, goals, and helps provide an exciting onboarding experience. The organization has undertaken several initiatives to attract, reward, and retain top talent. Here are some key efforts:
Compensation Adjustments: In December 2024, the City Council approved updated MOUs and benefit resolutions implementing market-based base pay increases, which helped align employee compensation with market standards. This adjustment made the City more competitive in attracting and retaining talent. Competitive Benefits: The new employee agreements also adjusted the City’s contribution to employee benefit cafeteria plans, bringing these benefits nearer to market comparables. Other employee benefits include annual leave, paid holidays, City-paid life insurance, City match towards 457 deferred compensation plans, tuition reimbursement, certification pay, and other benefits. The City is also piloting a hybrid/remote work policy with its unrepresented employees to promote employee retention by offering flexible work arrangements that improve work-life balance and job satisfaction.
Continuous Recruitment: The City maintains continuous recruitment efforts for critical positions, such as Police Officers and Water Operators, to ensure a steady stream of candidates.
Expansive Recruitment Strategies: The City employs expansive recruitment strategies, including external and internal recruitments to fill vacancies more efficiently. Industry-appropriate targeted advertising is used to ensure that specific job searches reach candidates who are working in those specific fields. Recognition of Service: The City recognizes years of service with escalating annual leave, which helps retain experienced employees. For example, the Management Group received new accrual rates that increase with each year of service. Employee Wellness Program: The employee wellness program positively impacts employee retention by reducing stress, improving focus and productivity, enhancing teamwork, and increasing job satisfaction.
Focus on Organizational Culture: A positive, supportive, and meaningful work environment is essential to employee retention. A number of initiatives have been implemented to promote a culture that aligns with the City’s values, including Social and Wellness Committees that plan a variety of employee activities throughout the year; quarterly Leadership Forums for professional development; and training and development opportunities for employees at all levels.
Overall, these efforts are working together to improve recruitment and retention, ensuring that the city can maintain a stable and effective workforce to provide essential services to the community.
FINANCIAL IMPACT:
There is no financial impact associated with the recommended action.
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 commonsense 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. The approval of this action will not result in a significant effect on the environment. Therefore, no environmental analysis is required.
PREPARED BY: STEPHANIE WEBER, ADMINISTRATIVE ASSISTANT
REVIEWED BY: LORI SASSOON, CHIEF TALENT OFFICER
Stephanie Weber
Administrative Assistant
What is AB 2561?
The City of
Corona’s
vacancy rates
Measures the City has
taken to fill vacancies
Initiatives the City has
implemented to retain top
talent
Purpose:
• Address vacancies
• Public accountability
Bargaining Unit
Total Authorized
Positions
Total Positions
Filled Total Vacancies Vacancy Rate
CFA 122 117 5 4%
CPEA 133 118 15 11%
CPSA 34 34 0 N/A
CPSEA 379 329 50 13%
CSA 52 48 4 8%
EXEC 16 15 1 6%
MGMT 99 86 13 13%
Grand Total 835 747 88 11%
• Continuous recruitment efforts for
critical positions
• Internal and external recruitments
• Industry-appropriate targeted advertising
• Increased City contribution to cafeteria plans
• City match toward 457 deferred compensation
• Annual leave
• Paid holidays
• Certification pay
• Recognize years of with escalating annual
leave
• Employee recognition award event
• Reduces stress
• Improves focus and productivity
• Enhances teamwork
• Increase job satisfaction
• Professional development opportunities for
all levels
• Quarterly leadership forum
Thank you!
DATE: 05/21/2025
TO: Honorable Mayor and City Council Members
FROM: Planning and Development Department
2025-200
REQUEST FOR CITY COUNCIL ACTION
SUBJECT:
INCLUSIONARY HOUSING ORDINANCE RESEARCH RESULTS
EXECUTIVE SUMMARY:
This staff report asks the City Council to provide direction on preparing an inclusionary housing ordinance and hiring a consultant to prepare a fee analysis for determining an in lieu fee associated with the ordinance. An inclusionary housing ordinance would require developers of new residential developments to provide a certain percentage of affordable housing units within the project or pay a fee in lieu of building affordable housing units onsite. The City would use the in lieu fee to create affordable housing.
RECOMMENDED ACTION:
That the City Council provide direction on preparing an inclusionary housing ordinance and hiring a consultant to prepare a fee analysis for determining an in-lieu fee associated with the ordinance.
BACKGROUND & HISTORY:
At the request of Council Member Speake, the City Council at its meeting on September 18, 2024, discussed the possibility of preparing an inclusionary housing ordinance. The Council was not opposed to the idea but first wanted to know more about it and if inclusionary housing ordinances in other cities have resulted in affordable housing being built.
What is an Inclusionary Housing Ordinance?
An inclusionary housing ordinance typically requires a portion of new residential construction to provide a certain percentage of residential units to be set aside for the sale or rent to low- or moderate-income households to increase the availability of affordable housing, or as an alternative, the developer would pay the City a fee in lieu of building affordable units within the project. The in-lieu fee would be dedicated to affordable housing and managed by the City’s Housing Authority to facilitate the construction, acquisition and preservation of affordable housing.
Inclusionary Housing Ordinance Research
City staff researched 15 nearby cities in the counties of Riverside, Orange and San Bernardino to determine which cities have adopted an inclusionary housing ordinance.
Based on the research, only four cities have an inclusionary housing ordinance. Table 1 shows the cities included in the research.
Table 1
Inclusionary Housing Ordinance Research
Riverside County
City IH Ordinance
Norco Yes
Jurupa Valley Yes
Riverside No
Moreno Valley No
Banning No
Lake Elsinore No
Temecula No
Eastvale No
San Jacinto No
Orange County
Tustin Yes
Irvine Yes
Yorba Linda No
San Bernardino County
Rancho Cucamonga No
Ontario No
Chino Hills No
The cities of Norco, Tustin and Irvine are similar in the affordable housing requirement, which requires at least 15% of the total residential units of new residential construction to be affordable units using a combination of low and moderate income units. The affordable housing requirement in Jurupa Valley was lower, requiring 7% of the total residential units to be set aside as affordable. The combination of low and moderate income units varied in each city but the requirement for providing lower income units was generally the same at 9% and above. Also, Tustin’s inclusionary housing requirement is not citywide and is limited to two geographical areas identified as the Red Hill Avenue Specific Plan and Downtown Commercial Core Specific Plan.
Each inclusionary housing ordinance allowed an alternative for a developer to use in lieu of constructing affordable housing units as part of new residential development. These alternatives would satisfy the developer’s obligations required by the inclusionary housing ordinance. Common alternatives include:
In lieu fee. The payment of a fee in lieu of constructing affordable housing units onsite. The in-lieu fee would be used by the city to provide affordable housing. Land donation. Land within the City is donated to the city by the developer to support the future construction of affordable housing units. Offsite units. Affordable units would be constructed offsite elsewhere in the city by the developer.
Conversion of market rate units. Market rate units already constructed would be converted to affordable housing units for a certain period of time by the developer. Preservation of at-risk units. Existing affordable housing units that are at risk of losing funding would receive funding by the developer to extend the term of affordability for a certain period of time.
Table 2 summarizes the requirements of the inclusionary housing ordinances for the cities of Norco, Jurupa Valley, Tustin and Irvine.
Table 2
Summary of Inclusionary Housing Requirements
New
Residential
Development
Affected
Affordable Housing Requirement Alternatives for
New Residential
Development
In Lieu Fee
Norco
≥ 5 single
family units
≥ 5 multi-family
units
15% in the following combination:
9% low income
6% moderate income
(the above option can be reduced [credit]
if a percentage of very low-income units
are provided)
≤ 20 residential
units:
In lieu fee
Offsite units
Land donation
Escalating fee.
Fee is based on
square foot per
market rate unit
type & project
size.
Jurupa Valley
All residential
types.
7% in the following combination:
1
st unit at moderate
2
nd unit at low
3
rd & 4th units at very low
Subsequent units to follow the same
distribution such that 25% at moderate,
25% at low and 50% at very low
In lieu fee
Offsite units
Land dedication
Conversion of
market rate units
to affordable
units
Preservation of
at-risk units
$2.50 per
square foot of
each market
rate unit in the
project.
Tustin
All residential
types.
15% in the following combination:
6% very low
4.5% low
4.5 % moderate, or
12.5% in the following combination:
7.5% very low
≤ 20 residential
units:
In lieu fee
Offsite units
Land donation
$15,494 per
market rate unit
but allows a
50% reduction
under the
Voluntary
Table 2
Summary of Inclusionary Housing Requirements
New
Residential
Development
Affected
Affordable Housing Requirement Alternatives for
New Residential
Development
In Lieu Fee
5% moderate, or
15% in the following combination:
5% very low
10% low
Workforce
Housing
Incentive
Program
(VWHIP).
Irvine
All residential
types.
15% in the following combination:
5% very low
5% low
5% moderate
≤ 50 residential
units:
Offsite units
In lieu fee
Land dedication
Conversion of
market rate units
to affordable
housing
Preservation of
at-risk units
$16,693 per
market rate unit
in project.
Affordable Housing Outcomes from Inclusionary Housing Requirements Table 3 summarizes the number of affordable housing units created resulting from the inclusionary housing requirements in the cities researched.
Table 3
Affordable Housing Outcomes
City IH Ordinance
Adoption
Affordable Units Resulting From
IH Ordinance
Irvine 2003 2,111 units constructed
433 units entitled
(Irvine Housing Element, May 24, 2022)
Tustin 2018 2 units constructed
9 units entitled
Jurupa Valley 2022 No reportable metric
Norco 2022 No reportable metric
It is worth noting that Irvine has a robust housing market unlike the other cities in this research and the development of affordable housing units is beyond the requirements of Irvine’s inclusionary housing ordinance. Irvine has other funding sources and partnerships with developers that support the creation of affordable housing. For example, during the 5th Cycle Housing Element period from 2014 to 2020, Irvine issued
permits for 31,009 housing units. Of those, 14,184 units were affordable housing units, which exceeds the number of units created from the inclusionary housing ordinance.
Norco and Jurupa Valley’s inclusionary housing ordinances adopted in 2022 are fairly new. According to the ordinance in Jurupa Valley, the city is required to report on the effectiveness of the ordinance within three years from the date of its adoption, which is sometime around August 2025.
ANALYSIS:
The following outlines the process for the City in preparing an inclusionary housing ordinance.
Prepare draft ordinance. Staff would prepare a draft ordinance that would describe the requirements for inclusionary housing.
Fee study. The City would hire a fee consultant to prepare a fee study for determining an “in lieu” fee that can be considered as an alternative to satisfying the inclusionary housing requirement. The in-lieu fee would be paid by the developer for not constructing the affordable housing units in the project. Public outreach. The City would do outreach to homebuilders and stakeholders to share the draft requirements of the inclusionary housing ordinance and the amount of the in-lieu fee.
City Council update. Staff would present the draft ordinance and in lieu fee to the council before the final ordinance is presented to the council for adoption.
Time and Cost
The city anticipates it will take 12 to 18 months to prepare the ordinance, fee study, and conduct the public outreach. The cost of the fee study is anticipated to range from $20,000 to $50,000.
FINANCIAL IMPACT:
The anticipated cost for this request ranges from $20,000 to $50,000.
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 commonsense 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 is simply to receive direction from the City Council to initiate the process of preparing an ordinance for inclusionary housing. There is no possibility that this activity will have a significant effect on the environment. Therefore, no environmental analysis is required.
PREPARED BY: JOANNE COLETTA, PLANNING AND DEVELOPMENT DIRECTOR
ATTACHMENTS:
1. Exhibit 1 – Inclusionary Housing Ordinance research power point
2. Exhibit 2 – Council Member Speake future agenda item request
Joanne Coletta
Planning and Development Director
May 21, 2025 Page 877 of 1035
The City Council provide direction to staff on
preparing an Inclusionary Housing Ordinance
and hiring a consultant to prepare a fee
analysis for determining an “in lieu fee”
associated with the ordinance.
Inclusionary Housing Ordinance
Request by Council Member Speake.
Presented to Council on September 18, 2024.
City Council direction to staff:
• Would like to learn more about it.
• Has an inclusionary housing ordinance
produced affordable housing in other
cities?
Requires developers of new residential construction to:
Provide a certain percentage of residential units to be set aside for the sale or rent to low or moderate income households.
OR
Pay the city a fee in-lieu of building affordable units. The in-lieu fee would be dedicated to affordable housing to facilitate the construction, acquisition or preservation of affordable housing.
Increase the availability of affordable housing units in the city.
Inclusionary Housing Ordinance
Riverside County
City IH Ordinance
Norco Yes
Jurupa Valley Yes
Riverside No
Moreno Valley No
Banning No
Lake Elsinore No
Temecula No
Eastvale No
San Jacinto No
Orange County
City IH Ordinance
Tustin Yes
Irvine Yes
Yorba Linda No
San Bernardino
City IH Ordinance
Rancho
Cucamonga
No
Ontario No
Chino Hills No
City New Residential
Development Affected
Common Affordable Housing Requirement Common Alternatives To Providing On-Site Affordable
Units
In Lieu Fee Housing Fund
Norco ≥ 5 single family units
≥ 5 multi-family units
15% of the total units*
(requiring a combination of low- and
moderate-income units)
*Jurupa Valley requires only 7% of the total
units
In lieu fee
Offsite units
Land donation
Conversion of market rate
units to affordable units
Preservation of at-risk units
Escalating fee. Fee is
based on square foot per
market rate unit type &
project size.
Inclusionary
Housing Trust
Fund
Jurupa
Valley
All residential types. $2.50 per square foot of
each market rate unit in
the project.
Affordable
Housing Trust
Fund
Tustin All residential types. $15,494 per market rate
unit but allows a 50%
reduction under the
Voluntary Workforce
Housing Incentive
Program (VWHIP).
VWHIP Fund
Irvine All residential types. $16,693 per market rate
unit in project.
Affordable
Housing Fund
Inclusionary Housing Ordinance
Inclusionary Housing Ordinance
CITY IH ORDINANCE
ADOPTION
AFFORDABLE UNITS
RESULTING FROM
IH ORDINANCE
NOTES
Irvine 2003 2,111 units constructed
433 units entitled
(Irvine Housing Element, May 24, 2022)
Irvine has a robust housing market.
5 th Cycle Housing Element 2014-2020:
Housing unit permits issued: 31,009
• 16,825 above moderate units
• 14,184 affordable units (using IH
Ordinance and other various funding sources
and partnerships with developers)
(Irvine Housing Element, May 24, 2022)
Tustin 2018 2 units constructed
9 units entitled
Limited to two geographical areas
(Red Hill Specific Plan and Downtown
Commercial Core Specific Plan)
Jurupa Valley 2022 No reportable metric Ordinance fairly new. City staff is required to provide an
update within 3 years (August 2025)
on the effectiveness of the ordinance.
Norco 2022 No reportable metric Ordinance fairly new. Page 883 of 1035 TIME
12 to 18 months.
FEASIBILITY STUDY
Hire a consultant for feasibility analysis of inlieu fee (housing market analysis of construction costs, sale prices, rents, % of
income category allocation).
COST
$20,000 to $50,000 (consultant cost for
feasibility analysis).
Staff time devoted to the project
PUBLIC OUTREACH
Home builders, stakeholders, BIA.
CITY COUNCIL UPDATES
Updates throughout the process at City
Council meetings.
PERIODIC REVIEW
Periodic review of in-lieu fee after its
adoption.
The City Council provide direction to staff on
preparing an Inclusionary Housing Ordinance
and hiring a consultant to prepare a fee
analysis for determining an “in lieu fee”
associated with the ordinance.
Future Agenda Item Request Form
Future agenda items should be limited to new issues that emerge during the course of the year that are urgent and cannot wait until the next priority setting session of Council before requiring action.
Name: Wes Speake
Date: 8/2/2023
Title Name/Topic: Inclusive/Inclusionary Housing Ordinance for Multi-family Housing Background
1. What is the purpose for the request i.e. what you are trying to achieve or do? Explore the options of adopting an Inclusive/Inclusionary Housing Ordinance/Policy to ensure if/when large Multi-family is built in the city it requires some options for residents at various income levels
2. What is the scope of the work you wish to see done?
Provide Council with options for Inclusive/Inclusionary Housing Ordinance/policy to review that includes examples from various cities.
3. Does this request align with the City’s Strategic Plan? How? #6 High Performing Government: Reduces the likelihood of groups all low income housing in one place and the increase likelihood of taking steps toward meeting RHNA Goals
4. What is the desired timeline to have the issue considered by Council? No Rush.
5. Is the issue urgent requiring action before the next priority setting session of Council (Spring Workshop)?
No
Staff Section (To be completed by staff)
Approximate Staff Time Required: __27_ Hours
Approximate Cost: $ __1600_
DATE: 05/21/2025
TO: Honorable Mayor and City Council Members
FROM: Utilities Department
2025-209
REQUEST FOR CITY COUNCIL ACTION
SUBJECT:
COUNCIL MEMBER SPEAKE’S REQUEST FOR CITY COUNCIL TO CONSIDER
WESTERN RIVERSIDE COUNTY REGIONAL WASTEWATER AUTHORITY
REPRESENTATIVE CHANGE
EXECUTIVE SUMMARY:
This staff report asks the City Council to provide direction on Council Member Speake’s request to consider updating the Western Riverside County Regional Wastewater Authority Representatives.
RECOMMENDED ACTION:
That the City Council provide direction to staff on drafting a new resolution that would allow the Mayor to appoint the City of Corona’s representatives and alternates for the Western Riverside County Regional Wastewater Authority’s Board of Directors and Executive Committee. This new resolution would repeal Resolution No. 2022-018.
BACKGROUND & HISTORY:
On March 5, 2025, Council Member Speake submitted a request for a future agenda item to consider a Western Riverside County Regional Wastewater Authority (WRCRWA) Representative change allowing the Mayor to appoint the representative for board consistency.
Resolution No. 2022-018 currently designates the Mayor and the Department of Water and Power’s General Manager to act as Corona’s representatives on the WCRWA Board of Directors and Executive Committee. The resolution further designated and appointed Corona’s Vice Mayor to act as the Mayor’s alternate and the Operations Manager to act as the General Manager’s alternate.
ANALYSIS:
A new resolution allowing the Mayor to appoint the WRCRWA representatives for the City would be consistent with other board appointments and provide an opportunity for appointed board members to be knowledgeable and engaged in the affairs of the WRCRWA Joint Powers Authority. Additional edits within the resolution would also need to be addressed, including language to update the position titles for the Utilities Director and Assistant Utilities Director as Corona’s non-City Council representatives.
Staff would need to spend approximately four hours drafting a new resolution and staff report to present at a future City Council meeting for consideration.
FINANCIAL IMPACT:
The recommended action is depending on council direction. Should the City Council direct staff to move forward with a new Resolution, it would result in minimal staff cost, with approximately four hours spent drafting, reviewing, and presenting the item to the Council at a future meeting.
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 commonsense 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 seeks direction for future Council action regarding a resolution to update the City’s WRCRWA representatives, and there is no possibility that this direction will have a significant effect on the environment. Therefore, no environmental analysis is required.
PREPARED BY: TOM MOODY, DIRECTOR OF UTILITIES
DATE: 05/21/2025
TO: Honorable Mayor and City Council Members
FROM: Planning and Development Department
2025-201
REQUEST FOR CITY COUNCIL ACTION
SUBJECT:
ORDINANCE AMENDING CHAPTERS 16.04, 16.12, 16.20 AND 16.24 OF THE
CORONA MUNICIPAL CODE TO DELETE AND UPDATE OUTDATED LANGUAGE
AND TO AUTHORIZE THE CITY MANAGER TO APPROVE SUBDIVISION
IMPROVEMENT AGREEMENTS AND TO ACCEPT AND RELEASE SECURITY FOR
SUBDIVISIO
EXECUTIVE SUMMARY:
This staff report asks the City Council to approve an ordinance amending Title 16 of the Corona Municipal Code (CMC). Title 16 of the CMC governs the City’s subdivision regulations according to the state’s Subdivision Map Act for subdividing property. The amendment adds language to Chapter 16.24, Improvement Requirements, granting the City Manager the authority to execute subdivision improvement agreements for the construction of the required infrastructure improvements associated with subdivisions, accept the financial security according to the payment calculation required by the ordinance, and release the financial security upon the completion of the improvements and acceptance by the City Engineer. Additionally, outdated language that is no longer relevant is being deleted or amended in certain chapters of Title 16.
RECOMMENDED ACTION:
That the City Council introduce, by title only, and waive full reading of consideration of Ordinance No. 3417, first reading of an ordinance amending Chapters 16.04, 16.12, 16.20
and 16.24 of the Corona Municipal Code to delete and update outdated language and to authorize the City Manager to approve subdivision improvement agreements and to accept and release security for subdivision improvements.
BACKGROUND & HISTORY:
The City follows the requirements of the Subdivision Map Act, including the process that the legislative body of the city, which is the City Council, approves subdivision improvement agreements, accepts the financial security for the improvements to be constructed for the subdivision, and releases the financial security once the subdivision improvements are completed and accepted by the City.
The Subdivision Map Act, according to Government Code Sections 66462(d) and 66499.7(j), gives the City Council the authority, by ordinance, to authorize a designated city official to review and approve any improvement agreements between the City and the subdivider, and release the security provided by the subdivider upon the completion and acceptance of the improvements by the city.
In 2021, the City formed a permit ad-hoc committee to evaluate the development permit process to create an effective and streamlined process for contractors and developers.
One item identified by the ad-hoc committee was to establish the same ministerial approval that is used for improvement agreements and the acceptance of financial security for non-subdivision projects for subdivision projects tied to improvements related to the Subdivision Map Act. Currently, improvement agreements and the financial security posted with the City for non-subdivision projects are approved ministerially by staff. These projects are not delayed in being issued construction improvement permits once the plans are approved because the execution of the improvement agreements and financial security are not delayed by waiting for approval from the City Council.
The amendments proposed to the city’s Subdivision Code, Title 16, comply with Government Code Sections 66462(d) and 66499.7(j) of the Subdivision Map Act, and would enact the same practice used for non-subdivision projects for executing improvement agreements and posting financial security, which is done according to the requirements of the City’s ordinance. The difference is the approval is ministerial by the City Manager or their designee instead of the City Council. The City Manager would also have the authority to release the posted security after the City Engineer’s acceptance of the improvements.
ANALYSIS:
The CMC Chapters being amended include the following:
Chapter 16.04, General Provisions,
Chapter 16.12, Tentative Map,
Chapter 16.20, Parcel Map, and
Chapter 16.24, Improvement Requirements.
Chapter 16.04, General Provisions.
This chapter covers the general provisions of the City’s subdivision ordinance codified in Title 16 of the CMC and supplements the Subdivision Map Act. The definition section of this chapter is amended to add certain definitions that are used throughout Title 16. Also, the information in Section 16.04.050 is being deleted in its entirety because it is no longer relevant as the temporary change in the collection of development impact fees expired on June 30, 2014.
Chapter 16.12, Tentative Map and Chapter 16.20, Parcel Map The amendments to these chapters involve sentence structure revisions in certain sections and additional descriptions based on the City’s actual practice in processing tentative maps and parcel maps.
Chapter 16.24, Improvement Requirements
This chapter is renamed Subdivision Improvement Requirements. The amendment adds updated text regarding improvement requirements, financial security requirements, and improvement agreements. The amendment also authorizes the City Manager or their designee to execute improvement agreements, accept the financial security for the improvements according to the requirements in this chapter, and release the financial security posted for the improvements after the City Engineer’s acceptance of the improvements. The requirement for the public improvement agreement and financial security remain the same as it was when it was originally approved by the City Council.
Excess sections that were reserved within this chapter but do not contain any information are being deleted in addition to Sections 16.24.150 through 16.24.166. The latter sections are related to the public improvements associated with Assessment District No. 79-2, for Northeast Corona. This assessment district matured in 2003, and the improvements have been constructed.
FINANCIAL IMPACT:
The proposed text amendment does not result in a financial impact.
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 commonsense 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 is simply a text amendment to update the city’s process described in the Subdivision Code in Title 16 of the CMC. There is no possibility that this activity will have a significant effect on the environment. Therefore, no environmental analysis is required.
PREPARED BY: JOANNE COLETTA, PLANNING AND DEVELOPMENT DIRECTOR
ATTACHMENTS:
1. Exhibit 1 – Ordinance No. 3417
2. Exhibit 2 – CMC Chapter 16.04 redlines
3. Exhibit 3 – CMC Chapter 16.12 redlines
4. Exhibit 4 - CMC Chapter 16.20 redlines
5. Exhibit 5 - CMC Chapter 16.24 redlines
ORDINANCE NO. 3417
AN ORDINANCE OF THE CITY OF CORONA,
CALIFORNIA, AMENDING CHAPTERS 16.04, 16.12, 16.20
AND 16.24 OF THE CORONA MUNICIPAL CODE TO
DELETE AND UPDATE OUTDATED LANGUAGE AND TO
AUTHORIZE THE CITY MANAGER TO APPROVE
SUBDIVISION IMPROVEMENT AGREEMENTS AND TO
ACCEPT AND RELEASE SECURITY FOR SUBDIVISION
IMPROVEMENTS.
WHEREAS, Article XI, § 7 of the California Constitution authorizes cities to make and enforce within their limits all local, police, sanitary, and other ordinances and regulations not in conflict with general laws; and
WHEREAS, Corona Municipal Code (“CMC”) Chapter 16.04 sets forth the definitions and establishes the regulatory and advisory agencies for implementation of the Subdivision Map Act within the City; and
WHEREAS, CMC Chapter 16.12 sets forth the rules, regulations and requirements for the approval of tentative maps; and
WHEREAS, CMC Chapter 16.20 sets forth the rules, regulations and requirements for the approval of parcel maps; and
WHEREAS, CMC Chapter 16.24 sets forth the requirements for subdivision improvements, subdivision improvement agreements and financial security to guarantee the completion of subdivision improvements; and
WHEREAS, CMC Chapters 16.04, 16.12, 16.20 and 16.24 have not been substantively and comprehensively updated for over ten years and many of the provisions in these chapters are outdated and/or inconsistent with the City’s current operations and current law; and WHEREAS, the City Council has determined that amendments to CMC Chapters
16.04, 16.12, 16.20 and 16.24 are necessary to update the language to be consistent with the City’s current operations and to authorize the Planning and Development Department and the Planning and Development Director or his or her designee and the City Engineer or his or her designee to implement and enforce certain provisions of CMC Chapters 16.04, 16.12, 16.20 and 16.24; and WHEREAS, Government Code Sections 66462(d), 66497(d) and 66499.7(j) permit the City Council to delegate to a designated official the authority to enter into subdivision improvement agreements and to release or reduce security posted to guarantee performance of subdivision improvements; and
2 WHEREAS, the City Council desires to delegate the authority to approve subdivision improvement agreements and accept, reduce and release security posted pursuant to CMC Chapter 16.24 to the City Manager or his or her designee.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CORONA, DOES ORDAIN AS FOLLOWS:
SECTION 1. Incorporation of Recitals. The City Council finds and determines that the foregoing Recitals are true and correct and incorporates the Recitals herein.
SECTION 2. CEQA Findings. 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 makes minor updates to the rules and regulations pertaining to subdivisions to be consistent with the law and the City’s current operations, and there is no possibility that adopting this Ordinance will have a significant effect on the environment. Therefore, no environmental analysis is required.
SECTION 3. Amendments to Chapter 16.04. Chapter 16.04 (General Provisions) of Title 16 (Subdivisions) of the Corona Municipal Code is hereby amended in its entirety to read as set forth in Exhibit “A” attached hereto and incorporated herein by reference.
SECTION 4. Amendments to Chapter 16.12. Chapter 16.12 (Tentative Map) of Title 16 (Subdivisions) of the Corona Municipal Code is hereby amended in its entirety to read as set forth in Exhibit “B” attached hereto and incorporated herein by reference.
SECTION 5. Amendments to Chapter 16.20. Chapter 16.20 (Parcel Map) of Title 16 (Subdivisions) of the Corona Municipal Code is hereby amended in its entirety to read as set forth in Exhibit “C” attached hereto and incorporated herein by reference.
SECTION 6. Amendments to Chapter 16.24. Chapter 16.24 (Improvement Requirements) of Title 16 (Subdivisions)of the Corona Municipal Code is hereby amended in its entirety to read as set forth in Exhibit “D” attached hereto and incorporated herein by reference.
SECTION 7. Severability. If any provision or clause of this Ordinance or any application of it to any person, firm, organization, partnership or corporation is held invalid, such invalidity shall not affect other provisions of this Ordinance which can be given effect without the invalid provision or application. To this end, the provisions of this Ordinance are declared to be severable.