Agenda packet — Corona City Council, June 4, 2025 (part 1 of 8)

Wednesday, June 4, 2025
Closed Session Council Board Room 4:30 PM
Open Session Council Chambers 6:00 PM
This meeting will be conducted in person. You can participate remotely: https://coronaca-gov.zoom.us/j/88513048378

1. CONVENE CLOSED SESSION

1.1 CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Pursuant to Government Code Section 54956.8
Property: 009-620-196, Corona Municipal Airport
Agency Negotiator: Jacob Ellis, City Manager
Negotiating Party: Federal Aviation Administration
Under Negotiation: Price and Terms of Payment

1.2 CONFERENCEWITH REAL PROPERTY NEGOTIATORS
Pursuant to Government Code Section 54956.8
Property: 1045 Auburndale Street
Agency Negotiator: Jacob Ellis, City Manager
Negotiating Party: Audrie Echnoz, Corona-Norco YMCA
Under Negotiation: Price & Terms of Payment

2. INVOCATION - Elijah Coombes, Grace Baptist Church
The invocation may be offered by a person of any religion, faith, belief or non-belief, as well as Council Members. A list of volunteers is maintained by the City Clerk and interested persons should contact the Clerk for further information.

3. PLEDGE OF ALLEGIANCE

4. CONVENE OPEN SESSION
Individuals wishing to address the City Council are requested to complete a speaker card available at the rear of the Council Chambers. Please deliver the card to the City Clerk prior to the item being heard by the City Council or, for items not listed on the agenda, before the "Communications" section of the agenda is called.

Please observe a three-minute limit for communications and please note that the Communications section of the agenda is limited to items within the subject matter jurisdiction of the City Council that are not listed on the agenda. Once called upon to speak, you are requested to state your name and city of residence for the record.

5. PROCLAMATIONS/RECOGNITIONS/PRESENTATIONS

6. CONSENT CALENDAR
All items listed on the Consent Calendar are considered to be routine matters, status reports or documents covering previous City Council action. The items listed on the Consent Calendar may be enacted in one motion. With the concurrence of the City Council, a Council member or any person in attendance may request that an item be removed for further consideration.

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That the City Council approve the Consent Calendar.

6.1 MINUTES - SPECIAL MEETING MAY 21, 2025
Approval of Minutes for the City Council, Successor Agency to the Redevelopment Agency of the City of Corona, Corona Public Financing Authority, Corona Utility Authority, Corona Housing Authority Special Meeting of May 21, 2025

6.2 MINUTES - CITY COUNCIL MEETING MAY 21, 2025
Approval of Minutes for the City Council, Successor Agency to the Redevelopment Agency of the City of Corona, Corona Public Financing Authority, Corona Utility Authority, Corona Housing Authority City Council Meeting of May 21, 2025

6.3 CITY COUNCIL ADOPTION OF ORDINANCE NO. 3417, SECOND READING OF AN ORDINANCE

OF THE CITY OF CORONA, CALIFORNIA
APPROVING AN AMENDMENT TO 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

6.4 CITY COUNCIL ADOPTION OF ORDINANCE NO. 3418, SECOND READING OF AN ORDINANCE

OF THE CITY OF CORONA, CALIFORNIA
AMENDING CHAPTER 15.16 OF THE CORONA MUNICIPAL CODE TO DESIGNATE MODERATE,

HIGH, AND VERY HIGH FIRE HAZARD SEVERITY ZONES CONSISTENT WITH STATE LAW

6.5 FIFTH AMENDMENT TO THE AGREEMENT FOR REMOVAL, TRANSPORTATION AND DISPOSAL OF CLASS B BIOSOLIDS WITH SYNAGRO-WWT, INC. FOR BIOSOLIDS END USE That the City Council:

Authorize the City Manager, or his designee, to execute the Fifth Amendment to the Agreement for Removal, Transportation and Disposal of Class B Biosolids with SynagroWWT, Inc. of Baltimore, MD, in an amount not to exceed $1,800,000 per fiscal year for Class B Biosolids End Use through June 30, 2027.
a.

Authorize the City Manager, or his designee, to execute the Fifth Amendment to the Agreement for Removal, Transportation and Disposal of Class B Biosolids with SynagroWWT, Inc. including the ability to negotiate and execute any non-substantive changes and extensions, purchase orders and amendments up to the 10% of the original contract amount. b.

That the Corona Utility Authority review, ratify, and to the extent necessary, direct that the City Council take the above actions.

6.6 FIRST AMENDED AND RESTATED SCHOOL RESOURCE OFFICER AGREEMENT WITH CORONANORCO UNIFIED SCHOOL DISTRICT, VALID THROUGH 2030 That the City Council:

Approve the First Amended and Restated School Resource Officer (SRO) Agreement between the City of Corona and the Corona-Norco Unified School District (CNUSD), effective July 1, 2025, and valid through June 30, 2030. This agreement extends the term of the SRO program, modifies school campus assignments, and increases the maximum allowable a.

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overtime costs for SRO coverage. The agreement ensures the continued provision of law enforcement services at mutually agreed-upon school campuses, with the City and CNUSD sharing costs equitably.

Authorize the allocation of funding to cover fifty percent (50%) of the total compensation costs for each SRO, including salary, benefits, and motor pool expenses, as outlined in Exhibit A of the agreement.
b.

Direct City staff to collaborate with CNUSD representatives to conduct annual reviews of the SRO program each February, as stipulated in Section 3.10 of the agreement. These evaluations will assess program effectiveness, campus assignments, and compliance with the terms of the agreement.
c.

Approve the provision of administrative space, supplies, and equipment by CNUSD at each assigned school campus to support SRO operations. This includes office space, furniture, computers, and telephones, as specified in Section 3.4 of the agreement. d.

Authorize the City to assign police vehicles to SROs for program-related duties, with motor pool costs shared equally between the City and CNUSD. This arrangement supports the mobility and operational efficiency of SROs in fulfilling their responsibilities. e.

Ensure compliance with the mutual indemnification clause in Section 3.11, which protects both parties from liabilities arising from acts or omissions during the execution of the agreement. This clause reinforces the shared accountability and legal protections for both the City and CNUSD.
f.

Adopt this agreement as a critical measure to enhance school safety, foster positive relationships between law enforcement and students, and promote proactive programs that address campus security and student well-being. The agreement aligns with the City’s commitment to public safety and community partnership.
g.

Authorize an estimated revenue increase in the amount of $140,864 in the General Fund 110 for FY 2026.
h.

6.7 CITY LIABILITY, PROPERTY, AND WORKERS’ COMPENSATION INSURANCE POLICIES FOR FISCAL YEAR 2026
That the City Council:
a.General Liability. Authorize the renewal of the City’s excess general liability insurance policy through the Public Risk Innovation, Solutions and Management JPA for Fiscal Year 2026 with an estimated maximum premium amount of up to $2,916,000, coverage of $25M per occurrence, and a self-insured retention of $1M per occurrence.
b. Workers’ Compensation. Authorize the renewal of the City’s excess workers’ compensation insurance policy through the Public Risk Innovation, Solutions and Management JPA for Fiscal Year 2026, with an estimated maximum premium amount of up to $700,000. Coverage is equal to the statutory requirements for workers’ compensation and $5M per occurrence for employer’s liability, and an SIR of $1M per occurrence. The premium is based on estimated payroll and is subject to adjustment based on actual payroll.
c.Property. Authorize the renewal of the City’s property insurance with Alliant’s Property Insurance Program for Fiscal Year 2026, with an estimated maximum premium amount of up to $1,544,047, coverage for both real and personal property valued at approximately $807,192,830 (up from $760,215,998 last year), a coverage limit of $1B per occurrence (subject to policy exclusions and other sub-limits, including a $50K all-risk deductible for most buildings and facilities, a $10K deductible for vehicles off-premises and on-premises, a $500K deductible for wildfires, and a $5M deductible for the biosolids facility), continuation of coverage for vehicles at actual cash value (as opposed to

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replacement value), and continuation of coverage off-premises only for vehicles with a value of $100,000 or more.
d. Crime. Authorize the renewal of the City’s Master Government Crime insurance through the Public Risk Innovation, Solutions and Management JPA with the National Union Fire Insurance Company of Pittsburgh, PA, also known as AIG (“AIG”) for Fiscal Year 2026, with an estimated maximum premium amount of up to $19,000, coverage of $10M per occurrence, and a deductible of $2,500 per occurrence.
e.Airport. Authorize the renewal of the City’s Airport Liability insurance with the Starr Indemnity & Liability Company for Fiscal Year 2026, with an estimated maximum premium amount of up to $5,359, coverage of $25M per occurrence, and no deductible or SIR. f. Enhanced Pollution. Authorize the renewal of the City’s enhanced pollution liability insurance with Ironshore Specialty Insurance Company for Fiscal Year 2026, with an estimated premium of $122,491, coverage of $10M per pollution condition, and an SIR of $250,000 per pollution condition. g. Deadly Weapon Response Program. Authorize the renewal of Alliant’s Deadly Weapon Response Program coverage, underwritten by Lloyd’s of London, for Fiscal Year 2026, with an estimated maximum premium amount of up to $9,133 and coverage of $500,000 and sub-limit coverage of $250,000 for various incident related services and coverages. h.Cyber Liability. Authorize the purchase of enhanced cyber liability coverage with Public Risk Innovation, Solutions and Management JPA for Fiscal Year 2026, with an estimated maximum premium amount of up to $187,000 and coverage of $18M (policy limit/aggregate subject to the pool aggregate of $115M), including various sublimits (most notable of which are now much larger $7.75M extortion and data recovery cost sublimits). For several years, the cost of enhanced cyber liability insurance had been cost prohibitive, so we relied on the coverage provided under Alliant’s Property Insurance Program. However, last year the cost and quality of cyber liability coverage improved, and the City once again purchased a standalone cyber coverage policy.
i.Marketing Process. Pursuant to Corona Municipal Code Section 3.08.140(E), find that it is in the best interest of the City and its administrative operations to dispense with the City’s normal formal competitive bidding process and authorize the above purchases using Alliant’s competitive process, since the City’s competitive bidding process is not amenable to the purchase of these insurance policies and Alliant’s competitive process is a thorough and competitive which is an appropriate alternative to the City’s formal public competitive bidding procedures. j.Earthquake & Flood. Concur with staff recommendation not to purchase earthquake and flood insurance because it is not available at a reasonable cost. k.Implementation Actions. Authorize staff to take all other actions and execute all documents necessary to implement these recommendations, including any minor adjustments which are consistent with these recommendations and within the finally adopted Fiscal Year 2026 budgets for the Workers Compensation Fund 683 and the General Liability Fund 687.

That the Corona Utility Authority review, ratify and to the extent necessary, direct the City Council to take the above actions.

6.8 WESTERN RIVERSIDE COUNTY REGIONAL WASTEWATER AUTHORITY FISCAL YEAR 2026 BUDGET
That the City Council approve the proposed Western Riverside County Regional Wastewater Authority Fiscal Year 2026 budget.

That the Corona Utility Authority review, ratify, and to the extent necessary, direct the City Council to take the above actions.

6.9 ADOPT THE PROPOSED SHORT-RANGE TRANSIT PLAN FOR FISCAL YEARS 2025/26 THROUGH 2027/28

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That the City Council:
a. Adopt the proposed Short-Range Transit Plan for Fiscal Year 2026 through 2028.

Direct staff to submit the Short-Range Transit Plan for Fiscal Year 2026 through 2028 to the Riverside County Transportation Commission for approval. b.

Authorize revisions to the Fiscal Year 2026 Transit Service Fund revenue and expense budget following approval of the Fiscal Year 2026 through 2028 Short-Range Transit Plan by the Riverside County Transportation Commission.
c.

Authorize an appropriation of $100,000 from the Transit Service Fund 577 to the COA – Citywide Bus Stop Improvements, Capital Improvement Project No. FC-2022-19 for Fiscal Year 2026.
d.

6.10 RESOLUTION REVISING THE CITYWIDE MASTER FEE RECOVERY SCHEDULE TO AMEND THE

SPORTS FIELDS HOURLY RATES AND ESTABLISH RENTAL RATES FOR COUNCIL CHAMBERS AND MULTI-PURPOSE ROOM FOR GOVERNMENT AGENCY USE; AMENDMENT TO THE PARKS & RECREATION MASTER PLAN
That the City Council:

Adopt Resolution No. 2025-040, revising the Citywide Master Fee Recovery Schedule to amend the Sports Field hourly rates and establish rental rates for the Council Chambers and Multi-Purpose Room for government agency use.
a.

Approve an amendment to the Parks & Recreation Master Plan to create a new service category for Everyone Plays Youth Sports Groups.
b.

Authorize an estimated revenue increase in the amount of $85,000 in the General Fund 110 for FY 2026.
c.

6.11 RESOLUTION APPOINTING THE CITY’S REPRESENTATIVES AND ALTERNATES TO THE

WESTERN RIVERSIDE COUNTY REGIONAL WASTEWATER AUTHORITY BOARD OF DIRECTORS AND EXECUTIVE COMMITTEE AND TO REPEAL RESOLUTION NO. 2022-018 That the City Council adopt Resolution No. 2025-036, appointing the City’s representatives and alternates to the Western Riverside County Regional Wastewater Authority Board of Directors and Executive Committee and repealing Resolution No. 2022-018.

That the Corona Utility Authority review, ratify, and to the extent necessary, direct that the City Council take the above actions.

7. COMMUNICATIONS FROM THE PUBLIC
Persons wishing to address the City Council are requested to state their name and city of residence for the record. This portion of the agenda is intended for general public comment only, which means it is limited to items within the subject matter jurisdiction of the City Council that are not listed on the agenda. Please note that state law prohibits the City Council from discussing or taking action on items not listed on the agenda. The City Council will appreciate your cooperation in keeping your comments brief. Please observe a three-minute limit for communications.

8. PUBLIC HEARINGS
This portion of the agenda is for advertised public hearing items where formal public testimony on each individual item is accepted prior to City Council action.

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8.1 RESOLUTION CONFIRMING AND AUTHORIZING THE PLACEMENT OF DELINQUENT SOLID

WASTE CHARGES ON THE PROPERTY TAX ROLL
That the City Council:

Conduct a public hearing and accept public testimony regarding the delinquent residential solid waste collection charges proposed for placement on the Fiscal Year 2025-26 Riverside County property tax roll.
a.

Adopt Resolution No. 2025-077, confirming the report of delinquent solid waste charges and authorizing their collection on the Fiscal Year 2025-26 Property Tax Roll. b.

Authorize the City Manager or his designee to execute all necessary documents and take further actions to implement the placement of these charges. c.

9. ADMINISTRATIVE REPORTS
The portion of the agenda is for Council discussion and action on staff reports and new topics that may not be routine status reports, or documents covering previous City Council action.

9.1 ADOPTION OF THE CITY OF CORONA PROPOSED BUDGET FOR FISCAL YEAR 2026, AMENDMENTS TO THE FISCAL YEAR 2025 ADOPTED BUDGET, AND RELATED CONTRACT

AMENDMENTS, CHANGE ORDERS, AND PURCHASE ORDERS
That the:

City Council Adopt Resolution No. 2025-071, adopting the City’s budget for Fiscal Year 2026, Revised Budget Items, and General Fund Budget Policies. a.

Corona Utility Authority adopts Resolution No. 2025-072, adopting said Authority’s budget for Fiscal Year 2026, Revised Budget Items, and Budget Policies. b.

Corona Public Finance Authority adopts Resolution No. 2025-073, adopting said Authority’s budget for Fiscal Year 2026, Revised Budget Items, and Budget Policies. c.

Corona Housing Authority adopts Resolution No. 2025-074, adopting said Authority’s budget for Fiscal Year 2026, Revised Budget Items, and Budget Policies. d.

City Council adopts Resolution No. 2025-075, adopting the annual appropriations limit for Fiscal Year 2026 and selecting the population and inflation factors accordingly. e.

City Council and Corona Utility Authority approve the following additional budget items to be included in the Fiscal Year 2026 Adopted Budget:
f.

Authorize an appropriation in the amount of $175,000 from the General Fund 110 Designated Revenue Reserve (Public, Educational and Government (PEG)) to the City Broadcast System Overhaul, Capital Improvement Project No. TC-2022-02. i.

Authorize an appropriation in the total amount of $1,733,984 across multiple funds (see Analysis section) for Other Post Employment Benefits (OPEB) erroneously omitted from the proposed budget.
ii.

Authorize an appropriation reduction in the amount of $41,409 from the Residential Refuse/Recycling Fund 260 and a corresponding appropriation by the same amount in the Water Utility Fund 570 for the Utility Billing and Administration Manager Reallocation.
iii.

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Authorize an appropriation in the amount of $40,000 from the Airport Fund 275 to conduct a flight check for various equipment.
iv.

Authorize an appropriation reduction in the amount of $500,000 from the Road Maintenance and Rehabilitation Act (RMRA) Fund 221 and a corresponding appropriation in the same amount from the Measure A Fund 227 for the Pavement Maintenance and Resurfacing, Operations and Maintenance Project No. 69220. v.

Authorize an appropriation reduction in the amount of $300,000 from the Road Maintenance and Rehabilitation Act (RMRA) Fund 221 and a corresponding appropriation in the same amount from the Measure A Fund 227 for the Miscellaneous Repair and Replacements of Traffic Signals, Operations and Maintenance Project No. 70940.
vi.

Authorize an estimated revenue increase in the amount of $200,000 in the General Fund 110 to account for Waste Management’s annual contribution towards the City beautification program. The estimate was erroneously omitted from the proposed budget.
vii.

Authorize one (1) full-time Facilities Supervisor in the Community Services Department, and an appropriation in the amount of $33,988 in the General Fund 110. Recurring costs will be funded 20% in the salary/benefits budget and 80% through Capital Improvement Projects. The total recurring budget impact for the position is approximately $169,938.
viii.

City Council and Corona Utility Authority approve the following contract amendments, change orders, and purchase orders for Fiscal Year 2026:
g.

Authorize the City Manager, or his designee, to issue purchase orders for the attached list (Exhibit 8) of Information Technology software renewals for Fiscal Year 2026 including any non-substantive extensions, change orders, purchase orders, and amendments up to the lesser of either $100,000 or 10% of the original contract amount as authorized by Corona Municipal Code Section 3.08.070(I). i.

Authorize the Second Amendment to the Professional Services Agreement with South Coast Automation, Inc., for SCADA Integration Services to extend the term for an additional one-year period at the rates set forth therein and with a total compensation amount of $700,000 annually.
i.

Authorize the City Manager, or his designee, to negotiate and execute non-substantive extensions, change orders, and amendments up to the amount authorized by Corona Municipal Code Section

3.08.070(I).
•
Make a determination under Corona Municipal Code Section

3.08.140(E) that competitive bidding is not required for this purchase based upon the reasons provided in this agenda report.
•
Authorize the issuance of a purchase order in the amount of $175,000, annually, through June 30, 2028 to Ewing Irrigation Products, Inc. for the purchase of irrigation-related materials for parks and special districts. •
Authorize the City Manager, or his designee, to negotiate and execute non-substantive extensions, change orders, amendments, and additional purchase orders up to the amount permitted under Corona Municipal Code Section 3.08.080(I), which is equivalent to 10% of the contract value or $17,500
•

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Authorize an extension of the Maintenance/General Services Agreement with National Construction Rentals, Inc. for as needed temporary fencing and portable restroom rental services.
•
Authorize the City Manager, or his designee, to execute the Second Amendment to the Maintenance/General Service Agreement to extend the term through June 30, 2027, at the rates set forth therein and with a total compensation of $175,000 annually, including any nonsubstantive extensions, change orders, purchase orders, and amendments up to the amount authorized by Corona Municipal Code Section 3.08.060 (I), which is equivalent to 10% or $17,500. •
Authorize the City Manager, or his designee, to issue a Purchase Order to National Construction Rentals, Inc., in the amount of $175,000.
•
City Council and Corona Utility Authority approve the following budget amendments for Fiscal Year 2025:
h.

Authorize a continuing appropriation in the amount not to exceed $2,586,405 in the Measure X Fund 120 from Fiscal Year 2025 to Fiscal Year 2026 for Homeless program activities. The final amount will be determined based on the fiscal year-end balance. i.

Authorize a continuing appropriation in the amount not to exceed $304,576 in the Measure X Fund 120 from Fiscal Year 2025 to Fiscal Year 2026 for program expenditures related to the City Brand Implementation in the Communications Division.

The final amount will be determined based on the fiscal year-end balance. ii.

Authorize a continuing appropriation in the amount not to exceed $172,950 in the Measure X Fund 120 from Fiscal Year 2025 to Fiscal Year 2026 for Professional and Contractual Services in Economic Development. The final amount will be determined based on the fiscal year-end balance.
iii.

Authorize a continuing appropriation in the amount not to exceed $1,376,862 ($509,241 in the General Fund 110 and $867,621 in the Measure X Fund 120) from Fiscal Year 2025 to Fiscal Year 2026 for multiple items in the Fire Department and Information Technology Department. The final amount will be determined based on the fiscal yearend balance. iv.

Authorize a continuing appropriation in the amount not to exceed $16,335 in the Measure X Fund 120 from Fiscal Year 2025 to Fiscal Year 2026 for the Lobby Refresh project in the Planning and Development Department. The final amount will be determined based on the fiscal year-end balance.
v.

Authorize a budgetary transfer in the amount of $30,000 from the Animal Control Fire Alarm System Capital Improvement Project No. FC-2025-02 to the Police Department Locker Room/Facility Expansion Capital Improvement Project No. FC-2024-03 within the Measure X Fund 120.
vi.

Authorize an appropriation in the amount of $300,000 from the Water Utility Fund 570 to the Waterline Infrastructure Operating and Maintenance Project No. 71930. vii.

Adopt Resolution No. 2025-076, approving the City of Corona Position Library and Compensation Plan and repealing all prior Plans, including Resolution No. 2025-038, effective June 14, 2025.
i.

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10. LEGISLATIVE MATTERS
The portion of the agenda is for proposed ordinances presented for the City Council's consideration.

10.1 ORDINANCE AMENDING CHAPTER 3.08 OF THE CORONA MUNICIPAL CODE TO UPDATE THE CITY’S PURCHASING REGULATIONS
That the City Council introduce, by title only, and waive full reading of consideration of Ordinance No. 3419, first reading of an ordinance amending Chapter 3.08 of the Corona Municipal Code to update the City’s purchasing regulations.

11. REPORTS FROM BOARDS AND COMMISSIONS
This portion of the agenda lists items from Commissions and Boards from the City Council, Commissioners, and Staff.

11.1 Library Board of Trustees

11.2 Planning & Housing Commission

11.2.a RESUBMITTED TENTATIVE TRACT MAP 36864 TO SUBDIVIDE 2.09 ACRES INTO

SEVEN LOTS FOR RESIDENTIAL DEVELOPMENT LOCATED ON THE SOUTH SIDE OF CORONA AVENUE AND WEST OF INTERSTATE 15 IN THE R-1-7.2 SINGLE FAMILY RESIDENTIAL ZONE. (APPLICANT: FATHI MANASRAH)
That the City Council approve the Resubmitted Tentative Tract Map 36864 based on the findings and conditions of approval as recommended by the Planning and Housing Commission.

11.3 Parks & Recreation Commission

11.4 Regional Meetings

11.4.a UPDATE FROM MAYOR JIM STEINER ON THE RIVERSIDE TRANSITAGENCY (RTA) BOARD MEETING OF MAY 22, 2024

11.4.b UPDATE FROM VICE MAYOR JACQUE CASILLAS ON THE WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS (WRCOG) MEETING OF JUNE 2, 2025

11.4.c UPDATE FROM COUNCIL MEMBER WES SPEAKE ON THE OWOW STEERING COMMITTEE MEETING OF MAY 22, 2025

11.4.d UPDATE FROM COUNCIL MEMBER WES SPEAKE ON THE ORANGE COUNTY TRANSPORTATION AUTHORITY STATE ROUTE 91 ADVISORY COMMITTEE MEETING OF MAY 29, 2025

12. CITY ATTORNEY'S REPORTS AND COMMENTS

13. CITY MANAGER'S REPORTS AND COMMENTS

14. CITY COUNCIL MEMBERS' REPORTS AND COMMENTS

15. FUTURE AGENDA ITEMS

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This portion of the agenda is for items requested by the Mayor, Council Members or Staff for consideration at a future meeting. No immediate action is taken on Future Agenda Items; this section serves to highlight topics that will be considered at upcoming meetings. Council action on items that have appeared in this section takes place under Administrative Reports, when accompanied by a staff report.

15.1 (NEW) LETTER OF SUPPORT REQUEST FOR THE #REASONABLERANKS CAMPAIGN (J.

STEINER) TBD

15.2 UPDATE CMC 9.52.030, NO EXCEPTION - CERTAIN CCW PERMITS (T. DADDARIO) JUNE 18, 2025

15.3 SKYLINE MASTER PLAN (STAFF) JUNE 18, 2025

15.4 MOBILE HOME RENT STABILIZATION UPDATE (STAFF) JUNE 18, 2025

15.5 NORTH MALL CONCEPTS (STAFF) JULY 2, 2025

15.6 FEATHER FLAG PERMIT AMENDMENTS (W. SPEAKE) JULY/AUGUST

15.7 REVIEW/AMEND SECTION 17.63.120 ALTERATION, RELOCATION OR DEMOLITION OF HISTORIC RESOURCES, SPECIFICALLY (D)(6) (W. SPEAKE) JULY/AUGUST

15.8 EXPLORE CMC ORDINANCE CHANGES TO SET TIME LIMITS FOR SPECIFIC FOR TEMPORARY FENCING AND BOARDED UP WINDOWS (W. SPEAKE) AUGUST/SEPTEMBER

15.9 EXPLORE CORDON PRICING OF THE FOOTHILL CORRIDOR TO DETER CUT THROUGH TRAFFIC (W. SPEAKE) AUGUST/SEPTEMBER

15.10 METHODOLOGY FOR GREEN RIVER ROAD/FOOTHILL PARKWAY TRAFFIC STUDY (STAFF)

SEPTEMBER/OCTOBER

16. ADJOURNMENT
The next regular meeting of the City Council is scheduled for June 18, 2025 or thereafter as noted on the posted agenda for closed session items in the City Council Board Room followed by the regular meeting at 6:00 p.m. or thereafter as noted on the posted agenda in the City Council Chambers.

This meeting is being conducted in person as well as via teleconference. For members of the public wishing to submit written comments, please email comments to the City Clerk at [email protected] prior to the City Council meeting and your comments will be made part of the official record of proceedings.

In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the ADA Coordinator at (951) 736-2235. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.

Meeting is Being Recorded.

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DRAFT
1 City of Corona
City Council Minutes
Wednesday, May 21, 2025, 3:30 p.m.

Council Chambers
400 S. Vicentia Avenue
Corona, CA 92882
Council Present: Jim Steiner, Jacque Casillas, Tony Daddario, Tom Richins, Wes Speake
_____________________________________________________________________

1. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Mayor Steiner.

2. CONVENE OPEN SESSION
Mayor Steiner called the meeting to order at 3:32 p.m.

3. COMMUNICATION FROM THE PUBLIC
None.

4. AGENDA ITEMS

4.1 FISCAL YEAR 2026 PROPOSED BUDGET OVERVIEW
Julie Kennicutt, Deputy Finance Director, provided a presentation highlighting the following: Fiscal Year 2026 Proposed Budget Overview, Total – All Funds, Special Revenue Funds, Proprietary Funds, and General Fund.

The Council had inquiries and Ms. Kennicutt provided clarification.

5. ADJOURNMENT
The next scheduled meeting of the Council is on May 21, 2025 at 6:00 p.m. Mayor Steiner adjourned the meeting at 3:58 p.m.

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DRAFT
1 City of Corona
City Council Minutes
Wednesday, May 21, 2025, 6:00 p.m.

Closed Session- Council Board Room
Council Present: Jim Steiner, Jacque Casillas, Tony Daddario, Tom Richins, Wes Speake
_____________________________________________________________________

1. CONVENE CLOSED SESSION
Closed Session convened at 4:40 p.m. for the purposes listed below. Present were Mayor Steiner, Vice Mayor Casillas, Council Member Daddario, Council Member Richins, and Council Member Speake. Closed Session adjourned at 5:55 p.m.

1.1 CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Pursuant to Government Code Section 54956.8
Property: 117-191-004 and 117-191-022, Corona South Mall Agency Negotiator: Jacob Ellis, City Manager
Negotiating Party: Boss Wine and Events and Empty Plate Corona Under Negotiation: Price and Terms of Payment

1.2 CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Pursuant to Government Code Section 54956.8
Property: 1045 Auburndale Street
Agency Negotiator: Jacob Ellis, City Manager
Negotiating Party: Audrie Echnoz, Corona-Norco YMCA
Under Negotiation: Price & Terms of Payment

1.3 CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Pursuant to Government Code Section 54956.8
Property: 496 Corona Mall
Agency Negotiator: Jacob Ellis, City Manager
Negotiating Party: Moses Cortez
Under Negotiation: Price & Terms of Payment

2. INVOCATION
None.

3. PLEDGE OF ALLEGIANCE - Darya Makooi
The Pledge of Allegiance was led by Darya Makooi.

4. CONVENE OPEN SESSION

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DRAFT
2 Mayor Steiner called the meeting to order at 6:05 p.m.

5. PROCLAMATIONS/RECOGNITIONS/PRESENTATIONS

5.1 COMMENDATION: LIFE SAVING AWARD
The following residents accepted the Commendation: Lawrence Baril, Justin, Madriaga, Kristine Dela Cruz, Dave Underwood, Maximus Fernando, and Kevin James.

Mary Ybarra, resident, addressed the Council on behalf of the Corona Safety Foundation. She provided an overview on the services and fundraisers that the Corona Safety Foundation organizes.

5.2 PRESENTATION: UPDATE ON THE CITY’S IMPROVED ON-DEMAND

RESERVATION SYSTEM
Karen Lee, Recreation Supervisor, provided an update.

The Council had inquiries and Ms. Lee provided clarification.

6. CONSENT CALENDAR
The Consent Calendar was approved with the exception of Items 6.4 and 6.9, which were voted on separately.

Moved by: Tom Richins
Seconded by: Jim Steiner
Aye (5): Jim Steiner, Jacque Casillas, Tony Daddario, Tom Richins, and Wes Speake MotionAPPROVED (5 to 0)

6.1 MINUTES - CITY COUNCIL MEETING MAY 7, 2025
THE MEETING MINUTES WERE APPROVED.

Approval of Minutes for the City Council, Successor Agency to the Redevelopment Agency of the City of Corona, Corona Public Financing Authority, Corona Utility Authority, Corona Housing Authority City Council Meeting of May 7, 2025

6.2 CITY COUNCIL, SUCCESSOR AGENCY TO THE REDEVELOPMENT

AGENCY OF THE CITY OF CORONA, CORONA PUBLIC FINANCING

AUTHORITY, CORONA UTILITY AUTHORITY, AND CORONA HOUSING

AUTHORITY TO RECEIVE AND FILE THE MONTHLY INVESTMENT
PORTFOLIO REPORT FOR MARCH 2025
THIS FINANCIAL REPORT WAS RECEIVED AND FILED.

That the City Council receive and file the monthly investment portfolio report for March 2025.

6.3 CITY COUNCIL, SUCCESSOR AGENCY TO THE REDEVELOPMENT

AGENCY OF THE CITY OF CORONA, CORONA PUBLIC FINANCING

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DRAFT
3 AUTHORITY, CORONA UTILITY AUTHORITY, AND CORONA HOUSING

AUTHORITY TO RECEIVE AND FILE THE MONTHLY FISCAL REPORT FOR MARCH 2025
THIS FINANCIAL REPORT WAS RECEIVED AND FILED.

That the City Council receive and file the monthly fiscal report for March 2025.

6.4 CITY COUNCIL ADOPTION OFORDINANCE NO. 3416, SECOND READING

OF AN ORDINANCE OF THE CITY OF CORONA, CALIFORNIA
Moved by: Wes Speake
Seconded by: Jacque Casillas
Aye (5): Jim Steiner, Jacque Casillas, Tony Daddario, Tom Richins, and Wes Speake
MotionAPPROVED (5 to 0)

6.5 CONSTRUCTION CONTRACT WITH MICON CONSTRUCTION, INC. IN THE AMOUNT OF $382,051 FOR THE COMMUNITY & INFRASTRUCTURE PHASE II – SHERIDAN PARK PLAYGROUND CAPITAL IMPROVEMENT PROJECT NO. FC-2024-08; NOTICE INVITING BIDS 25-042AS
THIS ITEM WAS APPROVED.

That the City Council:
a. Adopt the Plans and Specifications for the Sheridan Park Playground Replacement Project, Project No. CIP FC-2024-08, Notice Inviting Bids 25-042AS.
b. Award Notice Inviting Bids 25-042AS to Micon Construction, Inc., the lowest responsive, responsible bidder, for the total bid amount of $382,051, and waive all minor irregularities in the bidding document as submitted by the said bidder.
c. Approve the Construction Contract with Micon Construction, Inc. for the Community & Infrastructure Phase II - Sheridan Park Playground Capital Improvement Project No. FC-2024-08, in the amount of $382,051. d. Authorize the City Manager, or his designee, to execute the Construction Contract with Micon Construction, Inc., in the amount of $382,051, including any non-substantive extensions, change orders, purchase orders, and amendments up to the amount authorized by Corona Municipal Code Section 3.08.050(H), which is equivalent to 10% or $38,205.

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DRAFT
4 e. Authorize the City Manager, or his designee, to issue a purchase order to Micon Construction, Inc. in the amount of $382,051.
f. Authorize an appropriation in the amount of $85,000 from the Parks and Open Space Fund 217 to the Community Facilities & Infrastructure Phase II - Sheridan Park Playground Capital Improvement Project No. FC-2024-

08. 6.6 APPROVE THE UPDATED CITY OF CORONA TRANSIT SERVICE

DISADVANTAGED BUSINESS ENTERPRISE PROGRAM AND AUTHORIZE

THE CITY MANAGER TO SIGN THE DISADVANTAGED BUSINESS

ENTERPRISE PROGRAM OBJECTIVE AND POLICY STATEMENT
THIS ITEM WAS APPROVED.

Moved by: Tom Richins
Seconded by: Jim Steiner
That the City Council:
a. Approve the updated Disadvantaged Business Enterprise Program. b. Authorize the City Manager, or his designee, to sign the updated Disadvantaged Business Enterprise Program Objective and Policy Statement.

MotionAPPROVED

6.7 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 THIS ITEM WAS APPROVED.

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,

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5 PB02497501369, PB02497501358, PB02497501359, PB02497501360, PB02497501370, PB02497501371, PB02497501363, PB02497501361, and PB02497501362)

6.8 RESOLUTION NO. 2025-037, AUTHORIZING THE ANNUAL DESTRUCTION

OF CERTAIN OBSOLETE CITY RECORDS
THIS RESOLUTION WAS ADOPTED.

That the City Council adopt Resolution No. 2025-037, authorizing the annual destruction and disposal of certain City records.

6.9 UPDATED DONATION AND SPONSORSHIP POLICY
The Council provided comments and had inquiries. Sylvia Edwards, City Clerk, Justin Tucker, Assistant City Manager, and Jamie Raymond, Chief Deputy City Attorney, provided clarification.

Joe Morgan, resident, addressed the Council and expressed his concerns with the proposed item.

Moved by: Jacque Casillas
Seconded by: Wes Speake
That the City Council approve the proposed Donation and Sponsorship Policy.

Aye (5): Jim Steiner, Jacque Casillas, Tony Daddario, Tom Richins, and Wes Speake
MotionAPPROVED (5 to 0)

7. COMMUNICATIONS FROM THE PUBLIC
None.

8. PUBLIC HEARINGS

8.1 PUBLIC HEARING REGARDING THE UTILITIES DEPARTMENT WILDFIRE

MITIGATION PLAN
Mayor Steiner opened the Public Hearing. Sylvia Edwards, City Clerk, stated there was no correspondence received from the public. Mayor Steiner closed the Public Hearing.

Moved by: Tom Richins
Seconded by: Tony Daddario
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.

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DRAFT
6 Aye (5): Jim Steiner, Jacque Casillas, Tony Daddario, Tom Richins, and Wes Speake
MotionAPPROVED (5 to 0)

8.2 PUBLIC HEARING TO PRESENT THE ANNUAL REPORT ON THE CITY'S PERSONNEL VACANCY RATES AND THE CITY’S RECRUITMENT AND

RETENTION EFFORTS
Lori Sassoon, Human Resources Director, introduced the item and Stephanie Weber, Human Resources Administrative Assistant, provided a presentation.

Mayor Steiner opened the Public Hearing. Sylvia Edwards, City Clerk, stated there was no correspondence received from the public. Mayor Steiner closed the Public Hearing.

Moved by: Wes Speake
Seconded by: Jacque Casillas
That the City Council conduct the public hearing and receive and file this report.

Aye (5): Jim Steiner, Jacque Casillas, Tony Daddario, Tom Richins, and Wes Speake
MotionAPPROVED (5 to 0)

9. ADMINISTRATIVE REPORTS

9.1 INCLUSIONARY HOUSING ORDINANCE RESEARCH RESULTS
Joanne Coletta, Planning and Development Director, provided a presentation.

The Council provided comments and staff direction. The Council unanimously agreed to pursue the in-lieu fee inclusionary housing ordinance with 15% and pursue with options for multi-family and single family.

That the City Council provide direction on preparing an inclusionary housing ordinance and hiring a consultant to prepare a fee analysis for determining an inlieu fee associated with the ordinance.

9.2 COUNCIL MEMBER SPEAKE’S REQUEST FOR CITY COUNCIL TO

CONSIDER WESTERN RIVERSIDE COUNTY REGIONAL WASTEWATER

AUTHORITY REPRESENTATIVE CHANGE
Tom Moody, Utilities Director, provided a presentation.

The Council provided comments.

The Council unanimously appointed Council Member Speake as delegate and Council Member Daddario as the alternate.

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

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7 Board of Directors and Executive Committee. This new resolution would repeal Resolution No. 2022-018.

10. LEGISLATIVE MATTERS

10.1 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
Moved by: Tom Richins
Seconded by: Wes Speake
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.

Aye (5): Jim Steiner, Jacque Casillas, Tony Daddario, Tom Richins, and Wes Speake
MotionAPPROVED (5 to 0)

10.2 ORDINANCE AMENDING CHAPTER 15.16 OF THE CORONA MUNICIPAL

CODE TO DESIGNATE MODERATE, HIGH, AND VERY HIGH FIRE HAZARD

SEVERITY ZONES CONSISTENT WITH STATE LAW
Mayor Steiner commended Fire Chief Young for hosting a Town Hall for this item.

Moved by: Wes Speake
Seconded by: Tony Daddario
That the City Council introduce, by title only, and waive full reading of consideration of Ordinance No. 3418, the first reading of an ordinance adopting the City of Corona Local Responsibility Area Fire Hazard Severity Zones Map to designate moderate, high, and very high fire hazard severity zones and amending Chapter

15.16 of the Corona Municipal Code to update the fire hazard severity zones regulations.

Aye (5): Jim Steiner, Jacque Casillas, Tony Daddario, Tom Richins, and Wes Speake
MotionAPPROVED (5 to 0)

10.3 ORDINANCE AMENDING CHAPTER 3.08 OF THE CORONA MUNICIPAL CODE TO UPDATE THE CITY’S PURCHASING REGULATIONS
Kim Sitton, Finance Director, provided a presentation.

Joe Morgan, resident, addressed the Council and expressed his concerns with the proposed item.

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DRAFT
8 The Council provided comments and had inquiries. Ms. Sitton, Brett Channing, Assistant City Manager, and Jamie Raymond, Chief Deputy City Attorney, provided clarification.

Don Fuller, resident, addressed the Council and expressed his concerns with the proposed item.

This item is being brought back to a future City Council meeting.

That the City Council introduce, by title only, and waive full reading of consideration of Ordinance No. 3419, first reading of an ordinance amending Chapter 3.08 of the Corona Municipal Code to update the City’s purchasing regulations.

11. REPORTS FROM BOARDS AND COMMISSIONS

11.1 Library Board of Trustees
None.

11.2 Planning & Housing Commission
None.

11.3 Parks & Recreation Commission
None.

11.4 Regional Meetings

11.4.a UPDATE FROM COUNCIL MEMBER WES SPEAKE ON THE RIVERSIDE

COUNTY TRANSPORTATION COMMISSION (RCTC) MEETING OF MAY
14, 2025
Council Member Speake provided an update.

11.4.b UPDATE FROM VICE MAYOR CASILLAS ON THE CAL CITIES RIVERSIDE COUNTY DIVISION GENERAL MEMBERSHIP MEETINGOF MAY 19, 2025 Vice Mayor Casillas and Council Member Speake provided an update.

11.4.c UPDATE FROM COUNCIL MEMBER TOM RICHINS ON THE RIVERSIDE

COUNTY HABITAT CONSERVATIONAGENCY (RCHCA) MEETING OF MAY 8, 2025
Council Member Richins provided an update.

12. CITY ATTORNEY'S REPORTS AND COMMENTS
None.

13. CITY MANAGER'S REPORTS AND COMMENTS
None.

14. CITY COUNCIL MEMBERS' REPORTS AND COMMENTS
Council Member Speake thanked his mother for all her work.

Council Member Richins wished Council Member Speake a happy birthday.

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DRAFT
9 Vice Mayor Casillas announced she will be hosting Coffee with a Council Member this Saturday May 24, 2025, from 9:30 a.m. - 10:30 a.m. for District 1.

Mayor Steiner announced the celebration of life for Jerry Shoffer on May 30, 2025. He also acknowledged the passing of James Norman.

15. FUTURE AGENDA ITEMS

15.1 METHODOLOGY FOR GREEN RIVER ROAD/FOOTHILL PARKWAY TRAFFIC STUDY (STAFF) JUNE 4, 2025

15.2 UPDATE CMC 9.52.030, NO EXCEPTION - CERTAIN CCW PERMITS (T.

DADDARIO) JUNE 18, 2025

15.3 SKYLINE MASTER PLAN (STAFF) JUNE 18, 2025

15.4 MOBILE HOME RENT STABILIZATION UPDATE (STAFF) JUNE 18, 2025

15.5 NORTH MALL CONCEPTS (STAFF) JUNE/JULY

15.6 FEATHER FLAG PERMIT AMENDMENTS (W. SPEAKE) TBD

15.7 EXPLORE CMC ORDINANCE CHANGES TO SET TIME LIMITS FOR SPECIFIC FOR TEMPORARY FENCING AND BOARDED UP WINDOWS (W.

SPEAKE) TBD

15.8 EXPLORE CORDON PRICING OF THE FOOTHILL CORRIDOR TO DETER CUT THROUGH TRAFFIC (W. SPEAKE) TBD

15.9 REVIEW/AMEND SECTION 17.63.120 ALTERATION, RELOCATION OR DEMOLITION OF HISTORIC RESOURCES, SPECIFICALLY (D)(6) (W.

SPEAKE) TBD

16. ADJOURNMENT
The next scheduled meeting of the Council is on June 4, 2025. Mayor Steiner adjourned the meeting at 8:18 p.m. in honor of James Norman.

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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 SUBDIVISION IMPROVEMENTS 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:

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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 nonsubdivision 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

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• 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.

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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

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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

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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.

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3 SECTION 8. Conflicting Ordinances. This Ordinance shall supersede all other previous City Council resolutions and ordinances that may conflict with, or be contrary to, this Ordinance.

SECTION 9. Effective Date. The Mayor shall sign this Ordinance and the City Clerk shall attest thereto and shall within fifteen (15) days of its adoption cause it, or a summary of it, to be published in a genal circulation newspaper in the City of Corona. This Ordinance shall take effect and be in force 30 days after its adoption.

PASSED, APPROVED AND ADOPTED this 4th day of June 2025. _________________________________
Mayor of the City of Corona, California
ATTEST:
____________________________________
City Clerk of the City of Corona, California

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4 CERTIFICATION
I, Sylvia Edwards, City Clerk of the City of Corona, California, do hereby certify that the foregoing Ordinance was regularly introduced at a regular meeting of the City Council of the City of Corona, California, duly held on the 21st day of May 2025, and thereafter at a regular meeting held on the 4th day of June 2025, it was duly passed and adopted by the following vote:

AYES:

NOES:

ABSTAINED:

ABSENT:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Corona, California, this 4th day of June 2025. ___________________________________
City Clerk of the City of Corona, California
[SEAL]

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5 EXHIBIT “A”
CHAPTER 16.04

GENERAL PROVISIONS
Sections

16.04.010 Title and purpose.

16.04.020 Provisions supplemental to Subdivision Map Act.

16.04.030 Definitions.

16.04.040 Regulatory and advisory agencies.

16.04.010 Title and purpose.

This title may be cited as the "City Subdivision Ordinance." This chapter is enacted for the purpose of adopting subdivision regulations, in accordance with the Subdivision Map Act. The regulations contained in this chapter shall apply to all subdivisions or parts of subdivisions hereafter made, entirely or partially within the limits of the city

16.04.020 Provisions supplemental to Subdivision Map Act.

The provisions of the City Subdivision Ordinance codified in this title shall be in addition to and shall supplement the provisions of the Subdivision Map Act.

16.04.030 Definitions.

In addition to the definitions set forth in the Subdivision Map Act, the words, terms and phrases in this section shall govern the construction, meaning and application of words and phrases used in this title.
(A) “City Attorney” means the City Attorney for the City of Corona, or his or her designee. (B) “City Clerk” means the City Clerk for the City of Corona, or his or her designee. (C) "City Engineer" means the City Engineer for the City of Corona or another employee of the City of Corona who possesses a current and valid professional civil engineer license issued by the State of California and who is designated by the City Engineer to perform the duties of the City Engineer under this title.
(D) “City Manager” means the City Manager for the City of Corona or his or her designee.

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6 (E) “Director” means the Planning and Development Director for the City of Corona, or his or her designee.
(F) “Subdivision Map Act” means the laws of the State of California, as presently adopted or further amended, set forth in California Government Code §§ 66410 et seq.

16.04.040 Regulatory and advisory agencies.
(A) The City Council assumes regulation and control of the design and improvement of land subdivisions, as such power is vested in the city by the provisions of state law. It is unlawful to sell, lease or finance any lands within a subdivision in the city until the subdivider has first conformed with the requirements of the Subdivision Map Act and the City Subdivision Ordinance codified in this title.
(B) The Planning and Housing Commission is the advisory agency charged with the duty of making investigations and reports on the design and improvement of proposed divisions of real property and recommending the imposition of requirements or conditions thereon.

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7 EXHIBIT “B”
CHAPTER 16.12

TENTATIVE MAP
Sections:

16.12.010 Contents.

16.12.012 Preparation.

16.12.015 Fees — Payment.

16.12.020 Adjustment or refund.

16.12.030 Resubmission — Fee exempt.

16.12.040 Compliance with Environmental Quality Act.

16.12.050 Preparation — Filing.

16.12.060 Accompanying material.

16.12.061 Staff review and report.

16.12.062 Public hearing by Planning and Housing Commission.

16.12.063 Planning and Housing Commission report to the City Council.

16.12.064 City Council consideration of map and Commission recommendation.

16.12.065 Appeal of Planning and Housing Commission recommendation.

16.12.066 Extension of time limits.

16.12.068 Rephasing.

16.12.070 Change in conditions of approval, and amendment to an approved tentative map before final map.

16.12.010 Contents.

The tentative map shall show and contain the following matters:
(A) Vicinity or reference map;
(B) Boundary lines accurate in scale and location;
(C) Number of subdivision;

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8 (D) Legal description of property;
(E) Proposed land use of property;
(F) Name and address of owner, subdivider and engineer; (G) North arrow;
(H) Scale;
(I) Date of preparation;
(J) Approximate acreage of tract;
(K) Square footage of lots in tract;
(L) Average adjacent tract lot footages;
(M) Setback lines;
(N) Location, widths and approximate grades of streets; (O) Width or rights-of-way;
(P) Each new street shown by letter for purposes of identification until the proper name of such street is determined;
(Q) Name, location and width of adjacent streets;
(R) Width of required alleys.

16.12.012 Preparation.

After reviewing the provisions of Chapter 16.24, the subdivider shall submit a preliminary review application for the tentative map pursuant to Chapter 17.102.

16.12.015 Fees — Payment.

Fees associated with the application of a tentative map, as established by resolution of the City Council, shall be paid at the time of the filing such application.

16.12.020 Adjustment or refund.

No adjustment or refund of any portion of such fees shall be made once such fees have been paid.

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9 16.12.030 Resubmission — Fee exempt.

No fee shall be charged for any resubmitted tentative map if such resubmission is requested by the city.

16.12.040 Compliance with Environmental Quality Act.

The tentative map is subject to compliance with the California Environmental Quality Act.

16.12.050 Preparation — Filing.

The tentative map shall be prepared in accordance with the Subdivision Map Act and the provisions of the city subdivision ordinance codified with this title. Such filing must be made prior to the completion of final surveys of streets and lots and before the start of any grading or construction work in the proposed subdivision.

16.12.060 Accompanying material.

The tentative map shall be accompanied by reports and written statements from the subdivider giving essential information regarding the following matters:
(A) Subdivision development plan;
(B) Source, quality and estimate of available quantity of domestic water supply; (C) Type of street improvements and utilities which the subdivider proposes to install; (D) Proposed method of sewage disposal;
(E) Proposed storm drains, including grade and size;
(F) Proposed easements;
(G) Protective covenants to be recorded;
(H) Any proposed phasing.

16.12.061 Staff review and report.

City staff shall review the application for compliance with city ordinances and the Subdivision Map Act. Once the application is deemed complete by city staff, the planning division staff shall, within 60 days, prepare a written report to the Planning and Housing Commission, including proposed findings of facts and conditions of approval, if applicable, on the proposed project, and a recommendation to the City Council that the tentative map either be approved or denied according to the findings presented in the staff report . A copy of this report shall be available to

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10 the subdivider and the public at least three days before any Planning and Housing Commission public hearing on the tentative map.

16.12.062 Public hearing by Planning and Housing Commission.

The tentative map shall be heard by the Planning and Housing Commission at a noticed and advertised public hearing in conformance with state law.

16.12.063 Planning and Housing Commission report to the City Council.

The Planning and Housing Commission shall, after the close of the public hearing required in Section 16.12.062, make a written report to the City Council recommending that the council approve, conditionally approve or disapprove the tentative map based on the findings of fact for the proposed project.

16.12.064 City Council consideration of map and commission recommendation.

Following the determination by the Planning and Housing Commission, the Planning and Housing Commission Secretary shall forward the determination to the City Council within 10 days or the next regularly scheduled meeting, whichever is later. The Council may continue the map from time to time, but shall approve, conditionally approve or disapprove it within the time limits established by state law.

16.12.065 Appeal of Planning and Housing Commission recommendation.

As an alternative to the procedure in Section 16.12.064, any interested person adversely affected by the recommendation of the Planning and Housing Commission may file an appeal with the City Council concerning the Planning and Housing Commission recommendation. The appeal shall be filed with the City Clerk within five days of the Planning and Housing Commission determination and shall be accompanied by the fee established by resolution of the City Council. The City Clerk shall set the matter for a de novo hearing. The hearing shall be held within 30 days after the filing of the appeal.

Upon conclusion of the hearing, the City Council shall, within seven days, declare its findings based upon the testimony and materials produced before it or the Planning and Housing Commission. The City Council may sustain, modify, reject or overrule any recommendations of the Planning and Housing Commission, and may make any findings consistent with state law or local ordinance.

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11 16.12.066 Extension of time limits.

The time limits specified in this chapter for reporting and acting upon maps may be extended upon request by the subdivider and consent of the Planning and Housing Commission or City Council.

16.12.068 Rephasing.

After a tentative map is approved according to state law and this title, no change to its phasing shall be made except by the following means:
(A) If the tentative map was originally approved without phases, it must be resubmitted with the proposed phasing for review and approval by the Planning and Housing Commission and City Council pursuant to Section 16.12.070(A).
(B) If the tentative map was originally approved with phasing and provision for multiple final maps and the subdivider wishes to change the number or configuration of such final maps in compliance with the Subdivision Map Act, the tentative map shall be submitted to the Board of Zoning Adjustment pursuant to Chapter 17.98 for review of the revised phasing.

16.12.070 Change in conditions of approval, and amendments to an approved tentative map before final map.

After a tentative map is approved according to state law and this chapter, no change to the wording or impact of any tentative map condition of approval or an amendment to an approved tentative map shall be made except by means of a resubmitted tentative map or by an administrative letter of modification approved by the Director pursuant to this section. (A) Resubmitted tentative map.
(1) The city shall establish regular procedures for the resubmittal of approved tentative maps when the subdivider is proposing a substantive change in one or more conditions of approval or an amendment to an approved tentative map that is not consistent with the initial objectives and design of the tentative map, and such changes, in the reasonable judgment of the Director, are not so sweeping as to require an entirely new tentative map submittal. A new environmental assessment shall be required if the modified condition or amendment may have any adverse environmental effect. The Planning and Housing Commission and the City Council may consider the proposed changes without considering the resubmitted map in its entirety unless the environmental assessment so mandates. The resubmitted map shall be considered a new application for purposes of the Permit Streamlining Act. Except as is provided in Section

16.12.030, a fee shall be charged to cover the costs of such resubmittal. (2) In order to allow the city to process a resubmitted tentative map pursuant to this section, prior to resubmitting the map, the subdivider must decide to waive all subdivision map approval

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12 time limits in the Subdivision Map Act and must notify the city of such waiver by letter. Neither the City Council nor staff shall take any part in the determination by the subdivider whether to waive such time limits.
(3) The life of a tentative map, together with any changes approved through a resubmittal, shall be measured from that date of approval of the original map. (B) Administrative letter of modification.
(1) When a nonsubstantive change in a condition of approval or an amendment to an approved tentative map is sought by the subdivider that is in substantial compliance with the original intent and approval of the tentative map, the Director, following consultation with other affected city departments, may exercise reasonable discretion and approve the proposed change without notice or a public hearing. A fee shall be charged to cover the costs of the administrative letter of modification. For purposes of this section, a change in a condition of approval or an amendment to an approved tentative map is considered to be in substantial compliance with the approved tentative map if: (a) there is no increase in acreage or the number of lots, units or building sites, (b) the changes are consistent with the original intent of the approved tentative map and does not introduce a substandard design, and (c) the changes are consistent with applicable city ordinances and specific plans, the Subdivision Map Act and the project’s approved environmental analysis . (2) The life of a tentative map, together with any changes approved by an administrative letter of modification shall be measured from that date of approval of the original map. (3) Any decision made by the Director under this section can be appealed by the subdivider or by any interested party to the Planning and Housing Commission for final determination according to the process in Chapter 16.36. A fee shall be charged to cover the costs of such an appeal.

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13 EXHIBIT “C”
CHAPTER 16.20

PARCEL MAP
Sections

16.20.010 Requirements – Procedures.

16.20.020 Design standards and improvement requirements.

16.20.030 Waiver – Board authority.

16.20.040 Waiver – Application.

16.20.050 Waiver – Board consideration.

16.20.060 Waiver – Granting.

16.20.070 Required improvements – Certificate.

16.20.080 Required improvements – Construction.

16.20.090 Compliance with the California Environmental Quality Act.

16.20.100 Filing – Planning and Housing Commission.

16.20.110 Planning and Housing Commission report – Requirement.

16.20.115 Planning and Housing Commission – Public Hearing

16.20.120 Planning and Housing Commission report – Form.

16.20.130 Consideration – City Council authority.

16.20.135 Appeal of Planning and Housing Commission recommendation

16.20.140 Extension of time limits.

16.20.150 Change in conditions of approval, and amendments to an approved parcel map not recorded.

16.20.010 Requirements – Procedures.

This chapter sets forth the procedure for the processing, approving, conditionally approving, disapproving and filing of parcel maps in the city. The requirements as to form for parcel maps, and the procedures to be used for dedications thereon, are governed by the Subdivision Map Act.

The requirements as to content of parcel maps are governed by this chapter and the Subdivision Map Act.

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14 A parcel map is allowed to be used for residential subdivisions of four or fewer lots, and for subdivisions of greater than four lots on land zoned for industrial or commercial development, subject to the limitations set forth in Government Code Section 66426(c). The subdivider shall submit a preliminary review application for the parcel map pursuant to Chapter 17.102 before submitting a parcel map application.

16.20.020 Design standards and improvement requirements.

Parcel maps shall provide for the dedications of land, rights-of-way and easements, payment of fees and construction of all offsite and on-site improvements as required by Chapters 16.08 and

16.24. The standards and improvements are reasonable requirements for parcel map subdivisions in light of the provisions of the General Plan and the city’s master plans.

16.20.030 Waiver – Board authority.

In instances when the Subdivision Map Act would otherwise require a parcel map, such parcel map may be waived by the Board of Zoning Adjustment if all the requirements of §§ 16.20.040 through 16.20.060 are met.

16.20.040 Waiver – Application.

An application for a parcel map waiver shall be filed with the Director on such form and accompanied by such information and fee as may be required, together with an acceptable description and drawing of the existing parcel and the parcel to be created.

16.20.050 Waiver – Board consideration.

The Board of Zoning Adjustment shall consider the application for a parcel map waiver within 60 days after it is deemed complete without a notice or a public hearing. Before waiving any parcel map, the Board must first find that the proposed division of land complies with Title 17 and all requirements of this code as to area, improvement and design, floodwater drainage control, appropriate improved streets along with street lights and utility connections, sanitary disposal facilities, water supply availability, environmental protection, survey control and with all other requirements of the Subdivision Map Act and city ordinances enacted pursuant thereto.

16.20.060 Waiver – Granting.

If a waiver is granted, a certificate of compliance shall be provided to the applicant in a form suitable for recordation describing the real property involved, naming its owners as shown on the waiver application, stating that a parcel map waiver has been granted by the Board of Zoning

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15 Adjustment and setting forth the date of the waiver. The certificate of compliance shall be recorded by the applicant within 30 days of the decision by the Board of Zoning Adjustment.

16.20.070 Required improvements – Certificate.

Requirements for the construction of all improvements to be made pursuant to this chapter and Chapter 16.24 shall be noticed by certificate on the recorded parcel map.

16.20.080 Required improvements – Construction.

Except as otherwise provided in the conditions of approval for a parcel map, subdivider shall construct all improvements required by this chapter and Chapter 16.24, as applicable, prior to the issuance of a building permit or other grant of approval for development. The subdivider shall enter into an improvement agreement and post financial security with the city pursuant to §16.24.040.

16.20.090 Compliance with the California Environmental Quality Act.

The parcel map is subject to compliance with the California Environmental Quality Act.

16.20.100 Filing – Planning and Housing Commission.

A parcel map shall be filed with the staff of the Planning and Development Department.

16.20.110 Planning and Housing Commission report – Requirement.

Once the application is deemed complete by city staff, the planning division staff shall, within 60 days, prepare a written report to the Planning and Housing Commission including proposed findings of facts and conditions of approval, if applicable, on the proposed project, and a recommendation to the City Council that the parcel map either be approved or denied according to the findings presented in the staff report.

16.20.115 Planning and Housing Commission – Public Hearing.

The parcel map shall be heard by the Planning and Housing Commission at a noticed and advertised public hearing in conformance with state law.

16.20.120 Planning and Housing Commission report – Form.

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16 The Planning and Housing Commission staff report on the parcel map shall be in writing, and a copy thereof shall be available to the subdivider and the public at least three days before any Planning and Housing Commission hearing on the map.

16.20.130 Consideration – City Council authority.

16.20.135 Appeal of Planning and Housing Commission recommendation.

As an alternative to the procedure in Section 16.20.130, any interested person adversely affected by the recommendation of the Planning and Housing Commission may file an appeal with the City Council concerning the Planning and Housing Commission recommendation. The appeal shall be filed with the City Clerk within five days of the Planning and Housing Commission determination and shall be accompanied by the fee established by resolution of the City Council. The City Clerk shall set the matter for a de novo hearing. The hearing shall be held within 30 days after the filing of the appeal.

16.20.140 Extension of time limits.

The time limits specified in this chapter for reporting and acting upon maps may be extended by mutual consent of the subdivider and the Planning and Housing Commission or City Council.

16.20.150 Change in conditions of approval, and amendments to an approved parcel map not recorded.

After a parcel map is approved according to state law and this chapter, no change to the wording or impact of any parcel map condition of approval or an amendment to an approved parcel map not yet recorded shall be made except by means of a resubmitted parcel map or by an administrative letter of modification approved by the Director according to the provisions of §16.12.070.

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17 EXHIBIT “D”
CHAPTER 16.24

SUBDIVISION IMPROVEMENT REQUIREMENTS
Sections

16.24.010 Purpose

16.24.020 Required improvements.

16.24.030 Development impact fees.

16.24.040 Improvement agreement and financial security.

16.24.050 Subdivider payments to city for improvement materials.

16.24.060 Fair share cost of construction of future improvement

16.24.070 Release of financial security

16.24.080 City Manager authority

16.24.010 Purpose.

The purpose of this chapter is to implement the improvement and security requirements for subdivisions allowed by the Subdivision Map Act.

16.24.020Required improvements.

The subdivider shall construct or agree to construct all improvements, both onsite and offsite, in the subdivision that are required as a condition precedent to approval and acceptance of the final map. All improvements shall be constructed to the satisfaction of the City Engineer in accordance with standard engineering specifications of the city and other approved city standards. Subdivider shall submit improvement plans to the City for review and approval by the City Engineer that shall include the following as required by the conditions of approval for the subdivision:
(A) Grading, drainage, and erosion control, along with pertinent structures, including retaining walls, as are deemed necessary for proper uses in the subdivision, for the public safety and for prevention of sedimentation and damage to off-site property; (B) Portland cement concrete curb, gutter, sidewalk, driveway and driveway approaches; street structural section; alley structural section with Portland cement concrete gutter; (C) Domestic water, including all master plan facilities; (D) Relocation of existing waterlines to city standard plans and specifications;

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18 (E) Replacement of all waterlines lying under streets or alleys to be constructed in the subdivision, and any waterline to be relocated as required in the preceding subsection, with new pipe constructed of ductile iron;
(F) Sanitary sewer facilities and connections for each lot where a mainline sewer is reasonably available. The facilities and connections shall be made available for each lot in such manner that will avoid the necessity for disturbing the street pavement, gutter, curb and sidewalk when service connections are made;
(G) Electric distribution facilities in accordance with the city Utilities Department standards and service requirements, if applicable;
(H) Connections to electric and telephone public utilities supplying service to the city; (I) Street trees with irrigation systems meeting city standard plans and specifications; (J) Street light system meeting city standard plans and specifications; (K) Permanent subdivision survey monuments tied to suitable reference points. A complete record of monument locations shall be furnished to the City Engineer. Subdivision survey monuments shall include all corners and angle points on the perimeter of the subdivision and all streets, centerline intersections, lot corners, angle points and other points of control as required by the City Engineer;
(L) Fire protection facilities;
(M) Storm drain systems;
(N) Land to be dedicated for alleys, floodways, local transit facilities, and streets according to the major, collector, and secondary streets of the Circulation Element of the General Plan, and the city standard street sections for local streets;
(O) Land to be dedicated for trails in accordance with the Trails Master Plan or as required by a condition of approval of the subdivision.
(P) Improvements described in subsections (N) and (O) above as required by a condition of approval of the subdivision.
(Q) Temporary improvements required to be made prior to or concurrent with permanent improvements.
(R) In addition to the improvement requirements required by this section, the Planning and Housing Commission may recommend and the City Council may require that subdivider construct additional improvements if the Planning and Housing Commission determines that the additional improvement is in the interest of the public health and safety and is necessary for the orderly development of the subdivision.

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19 16.24.030 Development impact fees.

The subdivider shall pay the applicable development impact fees in accordance with Chapter 16.23 of the Corona Municipal Code.

16.24.040 Improvement agreement and financial security. (A) Improvement agreement. The subdivider, as a condition precedent to the approval of the final map, shall enter into an improvement agreement and post financial security with the city for the construction of such improvements, and shall thereafter complete the improvements at the subdivider’s expense within the time specified by the Director as set forth in the improvement agreement. The improvement agreement shall be in writing and shall be in a standard form approved by the Director and the City Attorney.
(B) Security amount. Subdivider shall provide financial security in the following amounts:
(1) 100% of the total estimated cost of the improvement or of the act to be performed, conditioned upon the faithful performance of such act or agreement; (2) 50% of the total estimated cost of the improvement or of the act to be performed, securing payment for labor, materials and equipment;
(3) 25% of the total estimated cost of the improvement or of the act to be performed, guaranteeing the work against defective workmanship or materials for one year after acceptance; and
(4) 100% of the total estimated cost to set the subdivision survey monuments. (C) Form of security. The form of security required by this section shall be one or a combination of the following, subject to the discretion of the City Engineer:
(1) Surety bond issued by one or more duly authorized corporate sureties. (2) A cash deposit, either with the city or a responsible escrow agent or trust company, at the option of the City Engineer.
(3) Letter of credit, in a form approved by the City Engineer and the City Attorney, from one or more local financial institutions subject to regulation by the state or federal government. (4) Any other form of security authorized by the Subdivision Map Act. (D) Time to submit. The improvement agreement shall be complete, fully executed, and on file with the City Clerk before the final map or parcel map is accepted for approval.

16.24.050 Subdivider payments to city for improvement materials.

The subdivider shall pay the city in advance for any materials which may be furnished to the subdivider by the city for the construction of improvementsrequired by this chapter, and an amount

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20 equal to the estimated costs of engineering and inspection services to be furnished by the city to the subdivider for such materials. Subdivider shall pay any amount due to the city in excess of the deposit prior to acceptance of the improvement. City shall refund any excess of amounts provided by subdivider under this section that are not expended upon acceptance of the improvement.

16.24.060 Fair share cost of construction of future improvement When the City Engineer has determined that the construction of an improvement otherwise required by this chapter or the conditions of approval for the subdivision is not warranted at the time of completion of the subdivision, the subdivider shall pay a fair share cost of the construction of the future improvement that is proportionate to the impacts of the subdivision related to the improvement, as determined by the City Engineer.

16.24.070 Release of financial security
(A) Partial release. Upon application by the subdivider, the City Manager may release of a portion of the security provided by subdivider for a portion of the improvements that have been accepted by the City Engineer as complete; provided that the security required by §16.24.040(B)(3) shall not be released and in no case shall the security be reduced to an amount below the amount required by §16.24.040(B)(1) and (2) for the improvements remaining to be completed under the improvement agreement.
(B) Full Release. Upon full completion of the improvements required by an improvement agreement and the City Engineer’s acceptance thereof, the City Manager shall release the financial security as follows:
(1) Subject to §16.24.070(B)(3), security given for the faithful performance of any act or improvement pursuant to §16.24.040(B)(1) shall be released upon the performance of the act or final completion and acceptance of the required work or improvement by the City Engineer. (2) Security given to guarantee payment for labor, materials and equipment pursuant to §16.24.040(B)(2) shall, six months after final completion and acceptance of the improvement by the City Engineer, be reduced to an amount equal to the total claimed by all claimants for whom claims of lien have been recorded and notice thereof given to the city, plus an amount reasonably determined by the City Manager to be required to assure the performance of any other obligations secured by the security. If no claims of lien have been recorded, the security shall be released in full six months after final completion and acceptance of the improvement by the City Engineer. (3) To guarantee and warrant the work or improvement for a period of one year pursuant to §16.24.040(B)(3), the City shall retain 25% of the security given pursuant to §16.24.040(B)(1) for the faithful performance of any act or improvement. Said security shall be released if no claims of defective work or improvement have been received or discovered by the city in that time period.

In the event of defective work or improvement, the city shall retain the security until all work or improvement is considered satisfactory and is accepted as complete by the City Engineer.

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21 (4) The security given for the survey monumentation pursuant to §16.24.040(B)(4) shall be released following receipt of notice that the final monuments were set and evidence that the engineer or surveyor has been paid for the setting of the final monuments.

16.24.080 City Manager authority.
(A) Improvement agreements. As permitted by Government Code Section 66462(d), the City Manager is authorized to review and approve any improvement agreements between the city and a subdivider required by this chapter and to accept financial security provided by the subdivider that complies with the requirements of this chapter. The City Council shall periodically review this delegation of authority provided to the City Manager (B) Release of security. As permitted by Government Code Section 66499.7(j), the City Manager is authorized to reduce or release the security provided by a subdivider pursuant to the requirements of this chapter upon a determination that the provisions of § 16.24.070 have been satisfied.

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DATE: 05/21/2025
TO: Honorable Mayor and City Council Members
FROM: Fire Department
2025-202

REQUEST FOR CITY COUNCIL ACTION
SUBJECT:

ORDINANCE AMENDING CHAPTER 15.16 OF THE CORONA MUNICIPAL CODE TO

DESIGNATE MODERATE, HIGH, AND VERY HIGH FIRE HAZARD SEVERITY ZONES

CONSISTENT WITH STATE LAW
EXECUTIVE SUMMARY:

This staff report recommends the City Council approve an ordinance adopting the updated Fire Hazard Severity Zone (FHSZ) map. The Office of the State Fire Marshal (OSFM) has updated the FHSZ map based on the latest scientific modeling of wildfire risks. Government Code § 51178 and § 51179, as amended by Senate Bill 63 (SB 63) and Assembly Bill 211 (AB211), now requires the adoption of all three FHSZ classes, Moderate, High, and Very High, whereas previously, local agencies were only required to adopt an ordinance for Very High zones. In compliance with SB 63 and AB 211, the City of Corona must formally designate these zones by ordinance. The amendment to CMC Chapter 15.16 is to keep the City in compliance with state law.

RECOMMENDED ACTION:

That the City Council introduce, by title only, and waive full reading of consideration of Ordinance No. 3418, the first reading of an ordinance adopting the City of Corona Local Responsibility Area Fire Hazard Severity Zones Map to designate moderate, high, and very high fire hazard severity zones and amending Chapter 15.16 of the Corona Municipal Code to update the fire hazard severity zones regulations.

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BACKGROUND & HISTORY:

The Office of the State Fire Marshal (OSFM) is responsible for identifying Fire Hazard Severity Zones (FHSZ) throughout California. These zones are categorized as Moderate, High, or Very High based on consistent statewide criteria and the expected fire hazard levels in those areas, as required by Government Code 51178. These designations are based on long-term fire behavior projections over a 50-year period, without considering short-term modifications.

Development of Fire Hazard Severity Zones
The establishment of FHSZs dates back to 1980 following the Panorama Fire. In response, Public Resource Code 4201 was enacted, which mandated that CAL FIRE develop FHSZ maps, with the first version released in 1985. The Tunnel Fire in Oakland Hills in 1991 led to further legislation known as the "Bates Bill" (AB 337), requiring CAL FIRE to identify Very High FHSZs within Local Responsibility Areas (LRA). In 2007, CAL FIRE finalized the Statewide FHSZ model, incorporating Very High FHSZ designations for LRAs, which the City of Corona adopted by ordinance in 2010.

Following the devastating Camp Fire in 2018, which burned over 153,000 acres, destroyed nearly 19,000 structures, and claimed 85 lives, additional legislation was introduced. SB 63, adopted in 2021, required the OSFM to identify Moderate and High FHSZ in LRAs. AB 211, passed in 2022, requires local agencies, such as the City of Corona, to formally designate Very High, High, and Moderate FHSZs by ordinance.

Local Implementation
Chapter 15.16 of the Corona Municipal Code governs the City’s regulations for FHSZs.

This chapter was first adopted by Ordinance No. 3034 in 2010, following the requirements set forth in AB 337.

On March 24, 2025, the OSFM released an updated FHSZ map in accordance with Government Code 51178. This map divides the LRA into three categories: Moderate, High, and Very High. The updated map incorporates new scientific data, including ember spread patterns and localized climate information. The model evaluates the probability of fire occurrence and expected fire behavior under extreme fuel and weather conditions.

Government Code Section 51179 requires the City to designate, by ordinance, the moderate, high, and very high fire hazard severity zones within 120 days of receiving the updated FHSZ map from the OSFM.

Under Government Code Section 51179(b)(3), the City is prohibited from reducing the hazard severity designations set by the OSFM. However, local agencies may increase hazard levels or add areas not identified by the OSFM as Moderate, High, or Very High FHSZ. The Corona Fire Department has not proposed any changes or additions to the OSFM recommendations as part of this adoption process.

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Key Legislative Requirements
Senate Bill 63 (SB 63)
 Effective January 1, 2022, SB 63 requires local agencies to adopt all three hazard levels (Moderate, High, and Very High) for LRAs, expanding beyond the previous requirement to adopt only Very High zones.

Assembly Bill 211 (AB 211)
 Effective September 27, 2022, AB 211 outlines the following requirements for local agencies:
o Designate Moderate, High, and Very High FHSZ within 120 days of receiving OSFM recommendations.
o Optionally increase the hazard level in areas where substantial evidence shows additional protection is needed.
o Transmit a copy of the adopted ordinance to the State Board of Forestry and Fire Protection within 30 days.
o Post a notice at the county recorder, assessor, and planning agency offices indicating the location of the OSFM-provided or locally amended map.

AB 211 also confirms that any local amendments to OSFM recommendations are final and cannot be overturned by the OSFM. Additionally, the OSFM is required to prepare and adopt a model ordinance to guide local agencies in establishing Very High FHSZs.

Ordinances that align with this model are presumed to be in compliance with state requirements.

ANALYSIS:

The attached ordinance adopts the updated FHSZ map issued by the OSFM, designating moderate, high, and very high fire hazard severity zones within the City. The attached ordinance also makes the following changes to CMC Chapter 15.16.  Section 15.16.010: Adopts the updated FHSZ map issued by the OSFM dated March 24, 2025.
 Section 15.16.020: Clarifies the authority of the Fire Chief to designate areas not identified on the FHSZ map issued by the OSFM to be consistent with the limited authority provided in SB 63 and AB 211, which only authorizes local agencies to increase the hazard levels or add areas not identified by the OSFM on the FHSZ map.
 Section 15.16.030: Updates statutory references for implementation of the FHSZ map by the Building Official.
 Section 15.16.060: Expands the defensible space provisions to high FHSZ.

FINANCIAL IMPACT:

The adoption of this Ordinance will not have a financial impact.

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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 simply designates the fire hazard severity zones recommended by the OSFM, as mandated by Government Code Section 51179, and amends the Corona Municipal Code to update the regulations regarding the fire hazard severity zones to be consistent with the updated map issued by the OSFM. Adoption of this Ordinance will not have an impact on the environment.

PREPARED BY: CINDI SCHMITZ, FIRE MARSHAL
REVIEWED BY: BRIAN YOUNG, FIRE CHIEF
ATTACHMENTS:

1. Exhibit 1 – Ordinance No. 3418 (Redline)

2. Exhibit 2 – Ordinance No. 3418 (Final)

3. Exhibit 3 – Local Responsibility Area – Fire Hazard Severity Zones Map dated March 24, 2025

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JAMIER\08000.19003\10308287.3
ORDINANCE NO. 3418

AN ORDINANCE OF THE CITY OF CORONA,

CALIFORNIA, ADOPTING THE CITY OF CORONA

LOCAL RESPONSIBILITY AREA FIRE HAZARD

SEVERITY ZONES MAP TO DESIGNATE MODERATE,

HIGH AND VERY HIGH FIRE HAZARD SEVERITY ZONES
AND AMENDING CHAPTER 15.16 OF THE CORONA

MUNICIPAL CODE TO UPDATE THE FIRE HAZARD

SEVERITY ZONES REGULATIONS
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, California Government Code §§ 51175 et seq. authorizes the State Fire Marshal to identify areas in the state as moderate, high, and very high fire hazard severity zones based on the severity of fire hazard that is expected to prevail in those areas due to fuel loading, slope, fire weather, and other relevant factors including areas where winds have been identified as a major cause of wildfire spread; and
WHEREAS, California Government Code § 51178.5 provides that within 30 days after receiving a transmittal from the State Fire Marshal that identifies fire hazard severity zones pursuant to Section 51178, a local agency shall make the information available for public review and comment; and
WHEREAS, the City of Corona (“City”) received a transmittal from the State Fire Marshal that identifies fire hazard severity zones within the City on or about March 24, 2025; and WHEREAS, the information from the State Fire Marshal identifying fire hazard severity zones within the City was made available for public review and comment on March 26, 2025, through an interactive page on the City Fire Department's website, which allowed residents to view the map and submit feedback or call directly. The City also shared multiple social media posts across various platforms and hosted an in-person town hall on May 14, 2025; and WHEREAS, California Government Code § 51179 requires that the City, within 120 days of receiving a transmittal from the State Fire Marshal that identifies fire hazard severity zones within the City, to designate, by ordinance, moderate, high, and very high fire hazard severity zones in the City; and
WHEREAS, as required by Government Code Section 51179, the City Council of the City of Corona desires to designate the fire hazard severity zones as identified by the State Fire Marshal as required by Government Code Section 51179; and WHEREAS, the City

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Council also desires to amend Corona Municipal Code (“CMC”) Chapter 15.16 to update the regulations pertaining to fire hazard severity zones to be consistent with state law.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CORONA, CALIFORNIA, 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.

This action simply designates fire hazard severity zones as recommended by the California State Fire Marshal pursuant to Government Code Section 51178, as mandated by Government Code Section 51179, 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. Adoption of Fire Hazard Severity Zones Map. The City Council hereby adopts the City of Corona Local Responsibility Area Fire Hazard Severity Zones Map from the Office of the State Fire Marshal dated March 24, 2025 for the incorporated area of the City of Corona.

SECTION 4. Amendment of Chapter 15.16. Chapter 15.16 (Fire Hazard Severity Zones) of Title 15 (Buildings and Construction) 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 5. 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.

SECTION 6. Conflicting Ordinances. This Ordinance shall supersede all other previous City Council resolutions and ordinances that may conflict with, or be contrary to, this Ordinance.

SECTION 7. Effective Date. The Mayor shall sign this Ordinance and the City Clerk shall attest thereto and shall within fifteen (15) days of its adoption cause it, or a summary of it, to be published in a general circulation newspaper published and circulated in the City of Corona. This Ordinance shall take effect and be in force on the 30th day after its adoption.

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JAMIER\08000.19003\10308287.3
PASSED, APPROVED AND ADOPTED this 4
th day of June, 2025.
_________________________________
Mayor of the City of Corona, California
ATTEST:
____________________________________
City Clerk of the City of Corona, California

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JAMIER\08000.19003\10308287.3

CERTIFICATION
I, Sylvia Edwards, City Clerk of the City of Corona, California, do hereby certify that the foregoing Ordinance was regularly introduced at a regular meeting of the City Council of the City of Corona, California, duly held on the 21st day of May 2025, and thereafter at a regular meeting held on the 4
th day of June, 2025, it was duly passed and adopted by the following vote of the City Council:

AYES:

NOES:

ABSTAINED:

ABSENT:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Corona, California, this 4
th day of June, 2025.
___________________________________
City Clerk of the City of Corona, California
(SEAL)

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JAMIER\08000.19003\10308287.3
EXHIBIT “A”
CHAPTER 15.16

FIRE HAZARD SEVERITY ZONES
Sections

15.16.010 Fire Hazard Severity Zones Map.

15.16.020 Changes to Fire Hazard Severity Zones.

15.16.030 Building Official responsibility.

15.16.040 Filing of Map with City Clerk.

15.16.050 Posting of notice of Map with County Entities.

15.16.060 Defensible space compliance inspections.

15.16.010 Fire Hazard Severity Zones Map.

The map entitled "Local Responsibility Area - Fire Hazard Severity Zones" dated March 24, 2025 as recommended by the State Fire Marshal pursuant to Government Code §§ 51175 et seq., which identifies areas within the city that are within the moderate, high and very high fire hazard severity zones (“FHSZ Map”), is hereby adopted and incorporated in this chapter by this reference. The Fire Hazard Severity Zones (“FHSZ”) are hereby established and declared to be those areas included within the boundary described and set forth in the FHSZ Map.

15.16.020 Changes to Fire Hazard Severity Zones.
(A) The Fire Chief may designate area(s) not identified as very high FHSZ by the State Fire Marshal, as very high FHSZ following a finding by the City Council pursuant to Government Code Section 51179 that is supported by substantial evidence in the record that the very high FHSZ designation is necessary for effective fire protection within the area(s). (B) The Fire Chief may designate area(s) not identified as moderate and high FHSZ by the State Fire Marshal, as moderate and high FHSZ, respectively.

15.16.030 Building Official responsibility.

The FHSZ Map is intended to be used in conjunction with the most current edition of the California Building Code, and supersedes any other maps previously adopted by the city designating fire hazard severity areas. The Building Official shall be responsible for enforcing provisions of the code and other applicable law which may be applicable to property identified on the FHSZ Map within the city, pursuant to the requirements of Chapter 7A of the California

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Building Code, Section R337 of the California Residential Code, and all other applicable state and federal laws, rules and regulations.

15.16.040 Filing of Map with City Clerk.

The Fire Chief shall cause the most current version of the FHSZ Map to be maintained on file with the office of the City Clerk at all times.

15.16.050 Posting of notice of Map with County Entities.

The Fire Chief shall cause a notice to be posted at the office of the Riverside County Recorder, Riverside County Assessor and the Riverside County Planning Department identifying the location of the FHSZ Map.

15.16.060 Defensible space compliance inspections.

The owner of real property located within a high or very high FHSZ that is subject to the requirements of Civil Code § 1102.19(a)(1), as it may be amended from time to time, may request a defensible space compliance inspection by submitting such request upon a form provided by the Fire Chief for that purpose. The purpose of the defensible space compliance inspection is to document whether the real property complies with the requirements set forth in § 15.12.320 of this code. A request for a defensible space compliance inspection shall be accompanied by an inspection fee in the amount established by resolution of the City Council. A request for a defensible space compliance inspection shall be submitted at least fourteen (14) days prior to the anticipated sale of the real property located within a high or very high FHSZ to provide sufficient time for the Fire Department to conduct the inspection and prepare a report of such inspection.

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DATE: 06/04/2025
TO: Honorable Mayor and City Council Members
Honorable President and Board Members
FROM: Utilities Department
2025-228

REQUEST FOR CITY COUNCIL AND

CORONA UTILITY AUTHORITY ACTION
SUBJECT:

FIFTH AMENDMENT TO THE AGREEMENT FOR REMOVAL, TRANSPORTATION AND DISPOSAL OF CLASS B BIOSOLIDS WITH SYNAGRO-WWT, INC. FOR

BIOSOLIDS END USE
EXECUTIVE SUMMARY:

This staff report asks the City Council to approve an amendment to the Agreement for Removal, Transportation, and Disposal of Class B Biosolids with Synagro-WWT, Inc. (Synagro). The amendment extends biosolids transportation, processing, and disposal services for one additional two-year term, bringing the total agreement length to six years, the maximum allowed under Corona Municipal Code Section 3.08.060(K).

RECOMMENDED ACTION:

That the City Council:
a. Authorize the City Manager, or his designee, to execute the Fifth Amendment to the Agreement for Removal, Transportation and Disposal of Class B Biosolids with Synagro-WWT, Inc. of Baltimore, MD, in an amount not to exceed $1,800,000 per fiscal year for Class B Biosolids End Use through June 30, 2027.

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b. Authorize the City Manager, or his designee, to execute the Fifth Amendment to the Agreement for Removal, Transportation and Disposal of Class B Biosolids with Synagro-WWT, Inc. including the ability to negotiate and execute any nonsubstantive changes and extensions, purchase orders and amendments up to the 10% of the original contract amount.

That the Corona Utility Authority review, ratify, and to the extent necessary, direct that the City Council take the above actions.

BACKGROUND & HISTORY:

The Water Reclamation Facility No. 1 (WRF1), located at 2205 Railroad Street, generates approximately 35 wet tons of Class B biosolids per day and approximately 12,500 wet tons of biosolids per year during the wastewater treatment process. As part of WRF1’s National Pollutant Discharge Elimination System (NPDES) permit issued by the State Water Resources Control Board (SWRCB), these biosolids must be managed per Title 40 of the Federal Code of Regulations (CFR), Part 503. Accordingly, Class B biosolids are dewatered to approximately 18%-19% total solids and loaded into trailers that are weighed and staged onsite until they are hauled away. The UD’s current contractor collects Class B biosolids from WRF1 and transports each load to a Synagro composting facility in Vicksburg, Arizona or Helendale, California.

Synagro was the sole respondent to the original Request for Proposals (RFP) and has provided these services under the current Agreement for Removal, Transportation, and Disposal of Class B Biosolids (Agreement) since September 1, 2021.

The current Agreement has been amended four times. Due to staffing challenges caused by the COVID-19 pandemic, the agreement was amended on April 6, 2022, to clarify separate compensation rates for Synagro depending on whether transportation services were provided to their composting facilities. The second amendment, established on July 1, 2022, clarified that the compensation issued in the original agreement was to be paid on an annual basis. The third and fourth amendments, on September 12, 2023, and June 18, 2024, respectively, were established to reflect the vendor’s CPI-adjusted hauling rates for the two one-year extensions provided in the initial Agreement.

ANALYSIS:

The initial Agreement was issued for a term of two years with the option for two separate one-year extensions, primarily due to uncertainty regarding the status of the failed biosolids dryer facility at WRF1 and the hope that it could be repaired and put back into service during that time. Currently, the dryer remains out of commission and is unlikely to return to service in the next two years.

Synagro maintains a substantial market share in the collection, transportation, and processing of Class B Biosolids in California and throughout the country. Therefore, staff recommends that the Fifth Amendment to the Agreement Synagro-WWT, Inc. be approved, extending the term of the agreement to June 30, 2027.

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FINANCIAL IMPACT:

Funding for the recommended actions is included in the Fiscal Year 2025 and the Proposed Fiscal Year 2026 Utilities Department’s Operating Budget. Funding in future fiscal years will be recommended through the budget process.

ENVIRONMENTAL ANALYSIS:

This action is categorically exempt pursuant to Section 15301 of the Guidelines for the California Environmental Quality Act (CEQA), which states that operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the CEQA determination, and is therefore exempt from CEQA. An environmental review is not required because the proposed action is not a project governed by the California Environmental Quality Act.

PREPARED BY: MAURO CASAS, CHIEF RECLAMATION OPERATOR
REVIEWED BY: TOM MOODY, UTILITIES DIRECTOR
ATTACHMENTS:

1. Exhibit 1 – Fifth Amendment

2. Exhibit 2 – Synagro Letter for Trailer Rental Charges

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CA\JR\06200.13002\10259358.1
(CITY ATTY: 01-14)

FIFTH AMENDMENT TO

AGREEMENT FOR REMOVAL, TRANSPORTATION AND DISPOSAL

OF CLASS B BIOSOLIDS

BETWEEN

CITY OF CORONA
AND
SYNAGRO-WWT, INC.

1. PARTIES AND DATE.

This Fifth Amendment to the Agreement for Removal, Transportation, and Disposal of Class B Biosolids (“Fifth Amendment”) is made and entered into this ____ day of _____________, 2025 by and between the City of Corona (“City”) and Synagro-WWT, Inc., a Maryland corporation (“Contractor”). City and Contractor are sometimes individually referred to as “Party” and collectively as “Parties” in this Fifth Amendment.

2. RECITALS.

2.1 Agreement. City and Contractor entered into that certain Agreement for Removal, Transportation, and Disposal of Class B Biosolids dated September 1, 2021 (“Agreement”), whereby Contractor agreed to remove, transport and dispose of Class B biosolids generated at the City’s Water Reclamation Facility #1.

2.2 Prior Amendments. City and Contractor entered into that certain First Amendment to the Agreement for Removal, Transportation and Disposal of Class B Biosolids on or about April 6, 2022 (“First Amendment”); City and Contractor entered into that certain Second Amendment to the Agreement for Removal, Transportation and Disposal of Class B Biosolids on or about July 1, 2022 (“Second Amendment”); City and Contractor entered into that certain Third Amendment to the Agreement for Removal, Transportation and Disposal of Class B Biosolids on or about September 12, 2023 (“Third Amendment”);. and City and Contractor entered into that certain Fourth Amendment to the Agreement for Removal, Transportation and Disposal of Class B Biosolids on or about June 18, 2024 (“Fourth Amendment”).

2.3 Amendment. City and Contractor desire to amend the Agreement for the fifth time to 1) extend the Term of the Agreement to June 30, 2027; and (2) replace Exhibit “C-3” (Compensation) with Exhibit “C-4” (Compensation).

3. TERMS.

3.1 Term. Section 3.1.2 (Term) of the Agreement, as amended by the Fourth Amendment, is hereby deleted in its entirety and replaced with the following:
“3.1.2 Term. The term of this Agreement shall be to September 1, 2021 to June 30, 2027, unless earlier terminated as provided herein, Contractor shall complete the Services within the term of Docusign Envelope ID: AC06C742-A2E0-407B-8387-631F028506C2 Docusign Envelope ID: 6D20022C-49F0-420C-B43D-CEE3023028D2

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CA\JR\06200.13002\10259358.1
2 (CITY ATTY: 01-14)
this Agreement, and shall meet any other established schedules and deadlines. The Parties may, by mutual, written consent, extend the term of this Agreement if necessary to complete Services.

3.2 Compensation. Section 3.3.1 (Compensation) and Exhibit “C-3” (Compensation) of the Agreement, as amended by the Third Amendment, are hereby deleted in their entirety and replaced with the following:
“3.3.1 Compensation. Contractor shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit “C-4” attached hereto and incorporated herein by reference. The total compensation, including authorized reimbursements, shall not exceed One Million Eight Hundred Thousand Dollars ($1,800,000) per fiscal year without written approval of City’s Representative.

Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement.”

3.3 Continuing Effect of Agreement. Except as amended by this Fifth Amendment, all provisions of the Agreement shall remain unchanged and in full force and effect.

From and after the date of this Fifth Amendment, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement as amended by this Fifth Amendment.

3.4 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Fifth Amendment.

3.5 Counterparts. This Fifth Amendment may be executed in duplicate originals, each of which is deemed to be an original, but when taken together shall constitute but one and the same instrument.
[SIGNATURES ON FOLLOWING PAGE]
Docusign Envelope ID: AC06C742-A2E0-407B-8387-631F028506C2 Docusign Envelope ID: 6D20022C-49F0-420C-B43D-CEE3023028D2

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CA\JR\06200.13002\10259358.1
3 (CITY ATTY: 01-14)
CITY’S SIGNATURE PAGE
FOR

FIFTH AMENDMENT TO

AGREEMENT FOR REMOVAL, TRANSPORTATION AND DISPOSAL

OF CLASS B BIOSOLIDS

BETWEEN

CITY OF CORONA
AND
SYNAGRO-WWT, INC.
.

IN WITNESS WHEREOF, the Parties have entered into this Fifth Amendment to Agreement for Removal, Transportation, and Disposal of Class B Biosolids as of the date first written above.

CITY OF CORONA
a California municipal corporation
By: _________________________
Tom Moody
Utilities Director
Reviewed By: _________________________
Katie Hockett
Assistant Utilities Director
Reviewed By: _________________________
Mauro Casas
Chief Reclamation Operator
Reviewed By: _________________________
Yasmin Lopez
Purchasing Manager
Attest:

Sylvia Edwards, City Clerk
City of Corona, California
Docusign Envelope ID: AC06C742-A2E0-407B-8387-631F028506C2 Docusign Envelope ID: 6D20022C-49F0-420C-B43D-CEE3023028D2

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CA\JR\06200.13002\10259358.1
4 (BB&K: 9-10)
27157.11000\2955190.2
CONTRACTOR’S SIGNATURE PAGE FOR

FIFTH AMENDMENT TO

AGREEMENT FOR REMOVAL, TRANSPORTATION AND DISPOSAL

OF CLASS B BIOSOLIDS

BETWEEN

CITY OF CORONA
AND
SYNAGRO-WWT, INC.

IN WITNESS WHEREOF, the Parties have entered into this Fifth Amendment to Agreement for Removal, Transportation, and Disposal of Class B Biosolids as of the date first written above.

SYNAGRO-WWT, INC.
a Maryland corporation
By: _________________________
Robert Preston
CEO
By: _________________________
Kaivan Desai
CFO
Docusign Envelope ID: AC06C742-A2E0-407B-8387-631F028506C2 Docusign Envelope ID: 6D20022C-49F0-420C-B43D-CEE3023028D2

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CA\JR\06200.13002\10259358.1
5 (BB&K: 9-10)
27157.11000\2955190.2
EXHIBIT “C-4”

COMPENSATION
Contractor shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in this exhibit.

Class B Biosolids Product
Service Price Per Wet Ton
Removal & Transportation $78.38
Processing & Disposal only (no removal or transportation) $25.91 Minimum Load Required – Charge for <23.5 WT $1,841.92
**Monthly rental fee for staged trailers greater than one at $1,500.00/Mo each starting July 1, 2025.

Should Contractor experience a need to divert 45% or greater of the annual tonnage produced by the City to Nursery Products, Contractor shall offer a 5% discount to the stated pricing for this tonnage.

CPI Increases
All prices shall be adjusted annually beginning on July 1, 2023, based on the percentage change in the United States Bureau of Labor Statistics Consumer Price Index “All Urban Consumers for Riverside, California Area (CPI-U), not seasonally adjusted, for the most recent twelve (12) months for which statistics are available. This method of price adjustment shall apply to each extension period exercised. Option years shall become effective only upon issuance by the City of a duly authorized purchase order.

Fuel Surcharge Formula
A monthly fuel surcharge based on the U.S. Energy Information Administration’s “U.S. OnHighway Diesel Fuel Prices” web data, “California”, (monthly average of fuel pricing posted each Monday) shall be applied for the month in which the Contractor performs services with a base fuel rate of $4.758 per gallon subject to the following formulas:

Nursery Products Compost Facility, San Bernardino County, CA:

Fuel Surcharge Increase Formula: Distance Multiplier [0.63] X EIA fuel cost per gallon [$ ] – Base Fuel Price [$4.758] X Tons of Biosolids Managed [$_______] Minimum tons per load: 23.5
Docusign Envelope ID: AC06C742-A2E0-407B-8387-631F028506C2 Docusign Envelope ID: 6D20022C-49F0-420C-B43D-CEE3023028D2

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CA\JR\06200.13002\10259358.1
6 (BB&K: 9-10)
27157.11000\2955190.2
Arizona Soils Compost Facility, La Paz County, AZ:

Fuel Surcharge Increase Formula: Distance Multiplier [1.65] X EIA fuel cost per gallon [$ ] – Base Fuel Price [$4.758] X Tons of Biosolids Managed [$_______] Minimum tons per load: 23.

Docusign Envelope ID: AC06C742-A2E0-407B-8387-631F028506C2 Docusign Envelope ID: 6D20022C-49F0-420C-B43D-CEE3023028D2

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435 Williams Court, Suite 100
Baltimore, MD
21220
www.synagro.com
April 3
rd
, 2025
City of Corona
Andrew Farah
Lead Water Reclamation Operator
Hill Canyon Treatment Plant
755 Public Safety Way
Corona, CA 92878
Phone: (951) 415-1134
Email: [email protected]
RE: Trailer Rental Charges
Dear Andrew,
Good speaking with you today and as discussed, I am providing a detailed explanation for the planed necessary adjustment in applying our trailer rental charge. The adjustment is driven by rising acquisition costs for trailer units, escalating expenses for maintenance parts and regulatory licenses, and the impact of pending tariff increases by the U.S. government. These factors, combined drive the replacement value and have directly negatively affected our cost structure.

Since post Covid, we have experienced significant cost increases in acquiring new trailer units due to supply chain disruptions and higher raw material prices. We recognize the costs of our most recent purchases, which have been consistently rising, leading to higher operational expenses. Additionally, the cost of maintenance parts has surged due to ongoing supply chain constraints and vendor pricing adjustments.

The pending U.S. tariff increases on imported goods—including steel, aluminum, and various vehicle components—are expected to further inflate these costs, making routine repairs and maintenance more expensive than already experienced increases. These additional costs will be reflected in our financials as we continue to procure new parts at higher prices.

Furthermore, licensing and compliance costs have increased, driven by evolving regulatory standards. Ensuring that our fleet remains fully compliant with safety and environmental regulations has added to our overall expenses.

Given these industry-wide cost pressures, including the potential impact of the pending tariffs, we plan to adjust our pricing structure or in the City of Corona’s case for rental fees which Synagro and haulers have covered previously to sustain operational efficiency and maintain the quality of our rental services fleet.

Effective July 1st we will provide one staged trailer at no charge with any additional trailers at a rental fee of $1,500.00/Month.

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435 Williams Court, Suite 100
Baltimore, MD
21220
www.synagro.com
We remain committed to transparency and cost control, and we appreciate your understanding as we navigate these challenges. If you have any questions or require further clarification, feel free to contact me at: Phone323.843.7265 or Email: [email protected] with any questions.

Sincerely,
Robert B Ford
Sr Business Development Manager
Sincerely,
Carol Davalos
West Area Fleet Director
Attachment: Market Details

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435 Williams Court, Suite 100
Baltimore, MD
21220
www.synagro.com
Trailer Market Details
(Excluding Pending Tariff Impacts)
Summary on Rising Costs of Belt Trailers and Maintenance (2023-2025) Prepared for Synagro
Introduction
This report outlines the significant increase in the cost of belt trailers and their maintenance over the past three years. The data presented justifies the growing expenses associated with trailer procurement and upkeep. Industry trends, supply chain disruptions, and inflation have all contributed to these rising costs.

Trailer Cost Trends
In example belt trailer prices have seen a steady increase from 2023 to 2025. Based on market data, prices have shifted as follows:
• 2023: Belt trailers ranged from $68,000 to $101,000.
• 2024: Prices varied, but some new listings exceeded $100,000. • 2025: A 2026 model was recently listed for $126,500, indicating a continued upward trend.

Graph: Belt Trailer Price Increase (2023-2025)
Maintenance Cost Trends:

The cost of maintaining belt trailers has also increased, primarily due to rising labor costs, parts availability issues, and material inflation. Industry sources indicate:
• Belt and chain replacements now cost $21,000–$25,000, with a lifespan of approximately five years. • Structural repairs, such as fixing cross members and frame damage, can cost up to $18,000. • Preventive maintenance, including hydraulic system checks, filter changes, and component inspections, has seen increased costs due to higher material and labor expenses.

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435 Williams Court, Suite 100
Baltimore, MD
21220
www.synagro.com
Graph: Maintenance Cost Increase (2023-2025)
Factors Contributing to Cost Increases:

Several key factors have driven these rising expenses:
• Supply Chain Disruptions: Delays and shortages in steel, rubber, and hydraulic components have impacted both trailer manufacturing and repair costs.
• Inflation: The rising cost of raw materials, labor, and transportation has affected the overall cost structure of both purchasing and maintaining belt trailers.
• Increased Demand: As waste management and agricultural sectors expand, demand for belt trailers has grown, further driving up prices.

In Summary:

Given the ongoing increases in trailer acquisition and maintenance costs, it is essential to factor these trends into budgeting and operational planning. The justification for rising expenses is supported by industry data, and further cost projections should be considered when planning future investments in belt trailer equipment.

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DATE: 06/04/2025
TO: Honorable Mayor and City Council Members
FROM: Police Department
2025-184

REQUEST FOR CITY COUNCIL ACTION
SUBJECT:

FIRST AMENDED AND RESTATED SCHOOL RESOURCE OFFICER AGREEMENT WITH CORONA-NORCO UNIFIED SCHOOL DISTRICT, VALID THROUGH 2030 EXECUTIVE SUMMARY:

This staff report asks Council to approve the First Amended and Restated Agreement between the City of Corona and the Corona-Norco Unified School District to provide School Resource Officers on campuses throughout the City. The agreement extends the term of the program through June 30, 2030, adjusts campus assignments, and makes various changes to compensation and reimbursement to the City to provide this service.

RECOMMENDED ACTION:

That the City Council:
a. Approve the First Amended and Restated School Resource Officer (SRO) Agreement between the City of Corona and the Corona-Norco Unified School District (CNUSD), effective July 1, 2025, and valid through June 30, 2030. This agreement extends the term of the SRO program, modifies school campus assignments, and increases the maximum allowable overtime costs for SRO coverage. The agreement ensures the continued provision of law enforcement services at mutually agreed-upon school campuses, with the City and CNUSD sharing costs equitably.

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b. Authorize the allocation of funding to cover fifty percent (50%) of the total compensation costs for each SRO, including salary, benefits, and motor pool expenses, as outlined in Exhibit A of the agreement.
c. Direct City staff to collaborate with CNUSD representatives to conduct annual reviews of the SRO program each February, as stipulated in Section 3.10 of the agreement. These evaluations will assess program effectiveness, campus assignments, and compliance with the terms of the agreement. d. Approve the provision of administrative space, supplies, and equipment by CNUSD at each assigned school campus to support SRO operations. This includes office space, furniture, computers, and telephones, as specified in Section 3.4 of the agreement.
e. Authorize the City to assign police vehicles to SROs for program-related duties, with motor pool costs shared equally between the City and CNUSD. This arrangement supports the mobility and operational efficiency of SROs in fulfilling their responsibilities.
f. Ensure compliance with the mutual indemnification clause in Section 3.11, which protects both parties from liabilities arising from acts or omissions during the execution of the agreement. This clause reinforces the shared accountability and legal protections for both the City and CNUSD. g. Adopt this agreement as a critical measure to enhance school safety, foster positive relationships between law enforcement and students, and promote proactive programs that address campus security and student well-being. The agreement aligns with the City’s commitment to public safety and community partnership.
h. Authorize an estimated revenue increase in the amount of $140,864 in the General Fund 110 for FY 2026.

BACKGROUND & HISTORY:

The City of Corona and the Corona-Norco Unified School District (CNUSD) have participated in a cost-share agreement for Police Officer positions, known as School Resource Officers (SROs), since the early 1990s. The City of Corona has an Intermediate School Resource Officer currently under a Department of Justice Tobacco Grant that is scheduled to end on June 30, 2025. The City of Corona and the CNUSD currently have an agreement for four High School Resource Officers, which is scheduled to end on June 30, 2026. This agreement includes a fifty percent (50%) cost-share of the four School Resource Officer positions and their related vehicle motor pool costs, with the City of Corona being reimbursed by the CNUSD. There is a School Resource Officer assigned to Corona, Centennial, and Santiago High Schools. A fourth School Resource Officer is shared between Lee V. Pollard and Orange Grove High Schools.

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ANALYSIS:

The Intermediate School Resource Officer position is not currently covered under the most recent SRO Agreement approved by the City Council on July 1, 2021. The current School Resource Officer agreement with the CNUSD is for four High Schools for a fiveyear term that would have ended on June 30, 2026. This agreement would align the Intermediate School Resource Officer with the four High School Resource Officer Agreements. The amended and restated agreement would overwrite the prior agreement to add one Intermediate School Resource Officer position to the CNUSD contract as of July 1, 2025, to June 30, 2030.

FINANCIAL IMPACT:

The financial impact of amending and extending the current School Resource Officer (SRO) agreement is driven by the expiration of the tobacco grant that has funded the intermediate SRO position. This grant will end on June 30, 2025, necessitating a revision to the agreement to ensure continued funding for all SRO positions through June 30, 2030. The amendment will address changes in funding sources, salary structures, overtime (OT) limits, and motor pool costs for both high school and intermediate SROs.

This revision results in an estimated revenue increase of $132,597 for FY 2026. This includes $116,197, representing 50% of the district share of salaries and benefits for intermediate SRO position, and $16,400 representing 100% of the district share for that position’s overtime. Additionally, during the agreement review, staff identified $8,267 of the $15,000 OT cap for four high school SROs that had been underestimated in the FY 2026 proposed estimated revenue budget. As a result, the total estimated revenue increase over the Proposed amount for FY 2026 is $140,864.

For Fiscal Year 2026, the agreement will remain consistent with the prior approved 2021 SRO agreement for the four high school SROs.
 Salary and benefits will be capped at $211,878 per officer.  Overtime will be capped at $15,000.
 The motor pool will be capped at $11,257 per vehicle.

For Fiscal Year 2026, the intermediate SRO terms will be as follows:
 Salaries and benefits, and overtime will be billed based on the law enforcement officer classification from which each SRO is selected.  Overtime will be capped at $16,400.
 Motor pool costs will be billed at actual rates, not exceeding $30,000 annually.

From FY2027 onward, all five SROs will be billed according to the Corona Police Employees Association Memorandum of Understanding. Overtime is capped at $84,000 in FY2027, increasing by 5% annually. Motor pool costs are highly variable due to factors such as vehicle age, maintenance needs, and labor costs. New vehicles incur minimal costs, but by year four, major maintenance is typically required. To manage this variability, an annual cap of $30,000 per vehicle is recommended, with actual costs billed based on fleet department rates.

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Fiscal Year
Total
Salaries &
Benefits
Salaries &
Benefit District
Share (50%)
OT Cap District
Share (100%)
Total District
Share
FY 2026 $1,124,935 $562,467 $31,400* $596,467
FY 2027 $1,300,550 $650,275 $84,000 $734,275
FY 2028 $1,332,005 $666,003 $88,000 $754,003
FY 2029 $1,365,615 $682,808 $92,000 $774,808
FY 2030 $1,400,230 $700,115 $95,000 $795,115
* HS SRO's -$15,000|Inter SRO - $16,400
ENVIRONMENTAL ANALYSIS:

This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the common sense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This is merely an agreement and there is no possibility this will have a significant effect on the environment. Therefore, no environmental analysis is required.

PREPARED BY: MICHAEL NIELSEN, POLICE SERGEANT
REVIEWED BY: ROBERT NEWMAN, CHIEF OF POLICE
ATTACHMENTS:

1. EXHIBIT 1 – FIRST AMENDED AND RESTATED SRO AGREEMENT WITH CNUSD, VALID THROUGH 2030

2. EXHIBIT 2 - 2021 SRO AGREEMENT WITH CNUSD

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FIRST AMENDED AND RESTATED

SCHOOL RESOURCE OFFICER AGREEMENT
(CORONA-NORCO UNIFIED SCHOOL DISTRICT)

1. PARTIES AND DATE.

This First Amended and Restated School Resource Officer Agreement (“Agreement”) is made and entered into this 1st day of July, 2025 (“Effective Date”) by and between the City of Corona, a municipal corporation organized under the laws of the State of California with its principal place of business at 400 South Vicentia Avenue, Corona, California 92882 (“City”) and the Corona-Norco Unified School District, a public school district organized under the laws of the State of California with its principal place of business at 2820 Clark Avenue, Norco, California 92860 (“District”). City and District are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement.

2. RECITALS.

2.1 District Intent. The District desires to further promote good citizenship and mutual respect between Police and pupils.

2.2 City Intent. The City desires to promote cooperation and mutual understanding through its Police Department.

2.3 Prior Agreements. The Parties had previously entered into an Agreement for the provision of school resource officer(s) dated as of July 1, 2021, which agreement is set to expire as of June 30, 2026 (“2021 SROA”).

2.4 Purpose of this Agreement. The Parties desire to amend and restate the 2021 SROA as of the Effective Date to extend the term for the provision of school resource officer services to June 30, 2030, to increase the maximum overtime costs and to modify the school campus assignments.

3. TERMS.

3.1 School Resource Officer Assignment; Salary and Benefit Costs. At those school campuses which are mutually agreed upon by the Parties hereto, as discussed further in Section

3.7 below, the City agrees to assign a person trained in the field of law enforcement (“SRO”) during each day that school is in session at such school campuses. The City and District shall each pay fifty percent (50%) of all total compensation costs of each SRO, including, but not limited to, all salary, overtime, and benefits costs. Such total compensation costs shall be based on actual City total compensation rates for the law enforcement officer classification from which each SRO is selected, not to exceed the classification of a Police Officer salary scale. Such total compensation costs are estimated in Exhibit “A” attached hereto and incorporated herein by this reference.

3.2 Training Costs. The City shall incur all training costs for each SRO.

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3.3 Overtime Costs. As stated in Section 3.1 above, the City agrees to assign one SRO to each mutually selected school campus for each day that school is in session at such school campuses. If the regularly assigned SRO is unavailable on a given day, the City shall provide coverage on an overtime basis to fulfill this obligation. The District shall pay the City one hundred percent (100%) of the overtime costs for the SRO, but only up to the maximum annual amount set forth in Exhibit “A” attached hereto (“Maximum Overtime Reimbursement Amount”).

3.4 Administrative Space & Supplies. The District shall supply office space, a computer, necessary furniture and an office telephone (excluding cell phone) for each SRO to use at each mutually selected school campus. The District shall also supply necessary office supplies and any administrative assistance necessary to carry out duties under this Agreement.

3.5 Vehicle Assignment; Costs. The City will assign a City police motor vehicle to each SRO for the performance of the services to be rendered under this Agreement. The City and District shall each pay fifty percent (50%) of all City motor pool costs (vehicle replacement, maintenance, repair, and fuel) for one (1) vehicle per SRO, as set forth in Exhibit “A” attached hereto.

3.6 Invoicing & Payment. The City shall present to the District written invoices four times annually for each SRO. The invoices shall cover the periods ending September 30th, December 31st, March 31st, and June 30th each year, and shall be presented within thirty (30) days of the end of each period. Such invoices shall include fifty percent (50%) of all costs authorized for reimbursement pursuant to Sections 3.1 and 3.5 above, as well as one hundred percent (100%) of the overtime costs authorized for reimbursement pursuant to Section 3.3 up to the Maximum Overtime Reimbursement Amount. The District shall review such invoices and pay all approved charges thereon within forty-five (45) days, in accordance with its normal payment processing.

3.7 Party Representatives; Campus Assignments. The City’s representative for purposes of this Agreement shall be the Corona Police Family Services Sergeant (“City Representative”). The District’s representatives for purposes of this Agreement shall be the principals at the mutually selected school campuses (“District Representative”). While the currently anticipated campus assignments are noted in Exhibit “A” attached hereto, SRO assignments are subject to change and SROs shall be assigned to schools as specified in writing between the Parties through the City Representative and District Representative. Campus assignments shall be evaluated regularly by the City Representative with input from the District Representative.

3.8 SRO Services. The duties, responsibilities and services of an SRO shall include, but shall not be limited to, the following:
a. Prevention and deterrence of criminal activity on and near school campus.
b. Assistance to school staff and officials in developing proactive programs which promote safety and security on school campus.

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c. Providing counseling, presentations and information to students, parents and school officials.
d. Investigation of criminal offenses occurring on school campus. e. Assistance to school officials with student discipline, attendance and sporadic home visits.
f. Provision of technical and informational assistance to schools and community agencies.
g. Reporting of contacts with pupils, parents, staff and community members to the campus principal on a regular basis.
h. Other duties as assigned.

The precise services to be performed by each SRO on a given campus shall be mutually agreed upon between the District’s Representative at the campus and the City’s Representative.

3.9 Term; Termination. This term of this Agreement shall commence on July 1, 2021 and shall expire on June 30, 2030 unless the Parties earlier terminate this Agreement as provided herein or agree in writing to extend this Agreement. Either Party may terminate this Agreement at any time and without cause by providing thirty (30) days prior written notice to the other Party.

3.10 Annual Review. The Parties agree that the SRO program shall be reviewed and evaluated annually in February during the term of the Agreement. Said evaluation shall be made by the District Representatives, City Representative and each SRO.

3.11 Mutual Indemnification. The District shall defend, indemnify and hold harmless the City, its elected officials, officers, agents and employees from and against any and all claims, demands, judgments or liabilities arising from any and all alleged acts or omissions of the District and its elected officials, officers, agents and employees during those times when said elected officials, officers, agents and employees are acting pursuant to the terms of this Agreement. The City shall defend, indemnify and hold harmless the District, its elected officials, officers, agents and employees from and against any and all claims, demands, judgments or liabilities arising from any and all alleged acts or omissions of the City and its elected officials, officers, agents and employees during those times when said elected officials, officers, agents and employees are acting pursuant to the terms of this Agreement.

3.12 Entire Agreement. This Agreement contains the entire Agreement of the Parties with respect to the subject matter hereof, and, as of the Effective Date, supersedes all prior negotiations, understandings or agreements, including the 2021 SROA. This Agreement may only be modified by a writing signed by both Parties.
[SIGNATURES ON FOLLOWING 2 PAGES]

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CITY’S SIGNATURE PAGE FOR

CITY OF CORONA

SCHOOL RESOURCE OFFICER AGREEMENT
(CORONA-NORCO UNIFIED SCHOOL DISTRICT)

CITY OF CORONA
By: _________________________
Jim Steiner
Mayor
Attest:

By: _________________________
Sylvia Edwards
City Clerk
Approved as to Form:

By: _________________________
Dean Derleth
City Attorney

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DISTRICT’S SIGNATURE PAGE FOR

CITY OF CORONA

SCHOOL RESOURCE OFFICER AGREEMENT
(CORONA-NORCO UNIFIED SCHOOL DISTRICT)

CORONA-NORCO UNIFIED SCHOOL DISTRICT
By: _________________________
Sam Buenrostro, Ed. D.

Superintendent
Attest:

By: _________________________
Dalia Gadelmawla
Assistant Superintendent
Approved as to Form:

By: _________________________
District Counsel

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EXHIBIT “A”

SCHOOL RESOURCE OFFICER ANTICIPATED CAMPUS ASSIGNMENTS AND

ESTIMATED COMPENSATION AMOUNTS

1. Anticipated Campus Assignments.

As indicated in Section 3.7, the following anticipated campus assignments are subject to change by agreement of the City Representative and District Representative. 1 SRO Centennial High School
1 SRO Corona High School
1 SRO Santiago High School
1 SRO Shared - Lee V. Pollard & Orange Grove High Schools 1 SRO Shared – All Intermediate Schools

2. Estimated Compensation Amounts.

FY 2026 SRO Cost Structure
• For Fiscal Year 2026, the agreement will cover four high school SROs and one intermediate SRO.
o High school SROs:
 Salaries and Benefits will be billed based upon the law enforcement officer classification from which each SRO is selected, not to exceed the classification of a Police Officer salary scale, consistent with the 2021 SROA at $211,878 per SRO.
 Overtime will be consistent with the 2021 SROA, capped for the combined four high school SRO’s at $15,000 annually.
 Motor pool costs will remain consistent with the 2021 SROA, at $11,257 per vehicle.
o Intermediate SRO:
 Salaries and Benefits and overtime will be billed based upon the law enforcement officer classification from which each SRO is selected  Overtime will be capped at $16,400.
 Motor pool costs will be billed at actual rates, not exceeding $30,000 annually.
• The total FY 2026 estimated cost is:
o $1,124,935, with the District responsible for 50%, which is $562,467. o Overtime is capped at:
 $15,000 for the combined four high school SROs
 $16,400 for the intermediate SRO.

FY 2027–FY 2030 SRO Cost Structure
• From FY 2027 through the end of the Term, all five SROs will be billed based upon the law enforcement officer classification from which each SRO is selected.

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o Overtime is capped at $84,000 in FY 2027, increasing by 5% annually. o Motor pool costs will be billed at actual rates, with a $30,000 annual cap per vehicle.
• The total estimated costs and District obligations for each year are as follows:
o FY 2027: $1,300,550 total, $650,275 district share, $84,000 OT cap. o FY 2028: $1,332,005 total, $666,003 district share, $88,000 OT cap. o FY 2029: $1,365,615 total, $682,808 district share, $92,000 OT cap. o FY 2030: $1,400,230 total, $700,115 district share, $95,000 OT cap.

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DATE: 06/04/2025
TO: Honorable Mayor and City Council Members
Honorable President and Board
FROM: Legal & Risk Management Department
2025-230

REQUEST FOR CITY COUNCIL AND

CORONA UTILITY AUTHORITY ACTION
SUBJECT:

CITY LIABILITY, PROPERTY, AND WORKERS’ COMPENSATION INSURANCE POLICIES FOR FISCAL YEAR 2026
EXECUTIVE SUMMARY:

This staff report asks the City Council to approve the renewal of the City’s insurance policies. Each year, the City purchases at least eight insurance policies/programs to help mitigate the more common risks associated with the operation of the municipal organization. Alliant Insurance Services is the City’s broker of record and works with Legal & Risk Management staff for more than ten months each year to market and obtain the most effective coverage for the City, considering what is reasonably available at our designated risk tolerances, and at the most competitive prices possible. The recommended actions below will allow for such purchases to be completed utilizing Alliant’s extensive marketing efforts and professional advice.

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RECOMMENDED ACTION:

That the City Council:
a. General Liability. Authorize the renewal of the City’s excess general liability insurance policy through the Public Risk Innovation, Solutions and Management JPA for Fiscal Year 2026 with an estimated maximum premium amount of up to $2,916,000, coverage of $25M per occurrence, and a self-insured retention of $1M per occurrence.
b. Workers’ Compensation. Authorize the renewal of the City’s excess workers’ compensation insurance policy through the Public Risk Innovation, Solutions and Management JPA for Fiscal Year 2026, with an estimated maximum premium amount of up to $700,000. Coverage is equal to the statutory requirements for workers’ compensation and $5M per occurrence for employer’s liability, and an SIR of $1M per occurrence. The premium is based on estimated payroll and is subject to adjustment based on actual payroll.
c. Property. Authorize the renewal of the City’s property insurance with Alliant’s Property Insurance Program for Fiscal Year 2026, with an estimated maximum premium amount of up to $1,544,047, coverage for both real and personal property valued at approximately $807,192,830 (up from $760,215,998 last year), a coverage limit of $1B per occurrence (subject to policy exclusions and other sublimits, including a $50K all-risk deductible for most buildings and facilities, a $10K deductible for vehicles off-premises and on-premises, a $500K deductible for wildfires, and a $5M deductible for the biosolids facility), continuation of coverage for vehicles at actual cash value (as opposed to replacement value), and continuation of coverage off-premises only for vehicles with a value of $100,000 or more.
d. Crime. Authorize the renewal of the City’s Master Government Crime insurance through the Public Risk Innovation, Solutions and Management JPA with the National Union Fire Insurance Company of Pittsburgh, PA, also known as AIG (“AIG”) for Fiscal Year 2026, with an estimated maximum premium amount of up to $19,000, coverage of $10M per occurrence, and a deductible of $2,500 per occurrence.
e. Airport. Authorize the renewal of the City’s Airport Liability insurance with the Starr Indemnity & Liability Company for Fiscal Year 2026, with an estimated maximum premium amount of up to $5,359, coverage of $25M per occurrence, and no deductible or SIR.
f. Enhanced Pollution. Authorize the renewal of the City’s enhanced pollution liability insurance with Ironshore Specialty Insurance Company for Fiscal Year 2026, with an estimated premium of $122,491, coverage of $10M per pollution condition, and an SIR of $250,000 per pollution condition.

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g. Deadly Weapon Response Program. Authorize the renewal of Alliant’s Deadly Weapon Response Program coverage, underwritten by Lloyd’s of London, for Fiscal Year 2026, with an estimated maximum premium amount of up to $9,133 and coverage of $500,000 and sub-limit coverage of $250,000 for various incident related services and coverages.
h. Cyber Liability. Authorize the purchase of enhanced cyber liability coverage with Public Risk Innovation, Solutions and Management JPA for Fiscal Year 2026, with an estimated maximum premium amount of up to $187,000 and coverage of $18M (policy limit/aggregate subject to the pool aggregate of $115M), including various sublimits (most notable of which are now much larger $7.75M extortion and data recovery cost sublimits). For several years, the cost of enhanced cyber liability insurance had been cost prohibitive, so we relied on the coverage provided under Alliant’s Property Insurance Program. However, last year the cost and quality of cyber liability coverage improved, and the City once again purchased a standalone cyber coverage policy.
i. Marketing Process. Pursuant to Corona Municipal Code Section 3.08.140(E), find that it is in the best interest of the City and its administrative operations to dispense with the City’s normal formal competitive bidding process and authorize the above purchases using Alliant’s competitive process, since the City’s competitive bidding process is not amenable to the purchase of these insurance policies and Alliant’s competitive process is a thorough and competitive which is an appropriate alternative to the City’s formal public competitive bidding procedures. j. Earthquake & Flood. Concur with staff recommendation not to purchase earthquake and flood insurance because it is not available at a reasonable cost. k. Implementation Actions. Authorize staff to take all other actions and execute all documents necessary to implement these recommendations, including any minor adjustments which are consistent with these recommendations and within the finally adopted Fiscal Year 2026 budgets for the Workers Compensation Fund 683 and the General Liability Fund 687.

That the Corona Utility Authority review, ratify and to the extent necessary, direct the City Council to take the above actions.

BACKGROUND & HISTORY:

ANALYSIS:

A. BASIS FOR EXCEPTION TO COMPETITIVE BIDDING
Alliant Insurance Services, Inc. (“Alliant”) is the City’s broker of record for liability, property and workers’ compensation insurance coverage. Alliant is a well-established provider of

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specialty brokerage services to the public sector and has worked with the City for many years.

Alliant is not in the position to strictly follow the City’s formal public competitive bidding procedures, as the renewal of the City’s varied and detailed insurance policies does not lend itself to a typical RFP process and takes many months to complete. Staff has worked with Alliant over the years to identify the City’s complex coverage criteria, including broad and detailed coverage terms, various policy limits depending upon City risks and needs, and self-insured retentions (“SIR”) that allow for stable premium costs. Moreover, almost as soon as we purchase our policies for a given year, we begin to work with Alliant to gather information in order to begin the next renewal period. The process begins in earnest in the Fall and literally does not finish until this agenda report is ready to be finalized and published.

Staff believes that Alliant’s competitive process is an appropriate alternative authorized by Corona Municipal Code Section 3.08.140(E), which states as follows:
“(E) Purpose of bidding is otherwise accomplished. When the purchasing agent and the authorized contracting party, with the approval of the City Manager, determine that it is in the best interest of the city and its administrative operations to dispense with public bidding for non-public projects under this chapter.”
Staff believes that it is in the City’s best interests to follow the process established by our broker, since the process is more thorough and competitive than what the City could conduct itself using our competitive bidding procedures. Alliant begins to provide premium estimates to us in or about October, followed by updates in or about December and two or three additional times into the Spring. Alliant formally releases the City’s applications for coverage to insurance markets no later than March of each year. Alliant is able to reach markets and potential insurers that would very likely never respond to an RFP issued by the City or a process required by the City’s formal competitive bidding provisions.

This year, Alliant accessed the following competitive markets on behalf of the City:
 Excess General Liability: The excess liability insurance renewal faced another challenging year for the City and public entities throughout California and across the nation. Costs continue to rise as the state of the liability insurance market for public entities continues to harden with plaintiff settlement demands, jury verdicts, and high dollar liability claims continuing to rise dramatically. This results in more and larger claims, which drives increasing premiums.

The City’s self-insured retention had been $500,000 for many years, which was quite low when compared to full-service cities of similar size. Last year staff recommended increasing the retention to $1M to retain more risk and

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reduce overall costs (by almost $1M in premiums last year alone). We will continue with a $1M SIR.

The Alliant team has evaluated other options for the City on a regular basis, and as part of this effort approached more than 25 commercial markets, as well as the viability of other risk sharing pools. Through these efforts it has been determined that PRISM presents the broadest coverage option at the most competitive price. PRISM also allows the City flexibility in deciding how much risk to retain, understanding that the open market for cities with law enforcement has pushed retention levels up to a minimum of seven figures (ranging from $2M – $5M minimum). PRISM also allows the City a level of control over its own claims, including utilizing vendors that the City selects on its own merit, as well as using in-house personnel to defend litigation. In addition to the efforts that Alliant has put forth to validate the City’s program, PRISM also performs an extensive marketing effort annually for the pool’s reinsurance.
 Excess Workers Compensation: In FY 2021, the Excess Workers’ Compensation coverage was extensively marketed outside of the current program to alternative markets, and all ultimately declined to quote. The market for Excess Workers Compensation is very limited, with only a small handful willing to write coverage in California. It is further condensed when coverage is factored in – only three of them will write statutory limits for entities with safety payroll. These markets have been approached regularly on behalf of the City and underwriters have contended that they cannot compete with the Public Risk Innovation, Solutions and Management JPA (“PRISM”) program.

In 2023, Alliant presented a proposal from Arch Insurance Company for Excess Workers’ Compensation coverage that Alliant initially thought would have a significantly lower annual premium. The proposal included a threeyear premium guarantee of no more than 3% annual increase (with some exclusions). While the 3% annual rate increase limit would be desirable, the exclusions made a change to them more risky. In the end, the proposal was right in the ballpark of PRISM’s preliminary quote and if we switched, we would have been locked out of the JPA pool for three years, thus staff and Alliant recommended that renewing with PRISM made the most sense.  Property Insurance: Property insurance is currently purchased from the Alliant Property Insurance Program (APIP). APIP was formed in 1993 to meet the property insurance needs faced by public entities and is currently the largest property insurance placement in the world. APIP is a joint purchase program and there is no risk of assessments. Because of APIP’s large size, members receive low premiums with the best possible coverage terms. City losses, industry-wide events, inflation, labor shortages and rising material costs in recent years have resulted in several years of

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increased premiums. Although 2023 was a record-breaking year in the marketplace, losses had a much greater impact on the residential/personal lines market; the commercial lines market observed its first year of positive combined ratio in many years. This has led to additional capacity flowing into the marketplace driving costs down.

Alliant has evaluated standalone property options (more than 50+ carriers) over the years, however APIP remains the best program for the coming year. Not only has APIP’s pricing been highly competitive, but no carrier has been able to compete with the broad coverage terms. Even when considering a “paired” down version of coverage, pricing has been an issue for other options. Plus, the APIP program includes coverage for terrorism, auto physical damage, boiler & machinery, pollution, loss control and appraisals (building valued at $5M or greater).

The APIP program itself undergoes an extensive marketing effort every year. Carriers are added, deleted and rearranged based on availability capacity and layer pricing to ensure that the program continues to provide the most competitive structure for the membership.
 Master Crime Liability Coverage: The PRISM crime program is placed with AIG. While it is marketed annually, AIG remains the most viable partner for PRISM and the City due to its ability to provide full limit for Faithful Performance of Duty, a key coverage for public entities.  Airport Liability: The airport liability coverage was marketed in 2023 to all viable aviation markets (approximately 10) and with Starr Indemnity and Liability Company due to the program’s broad terms and competitive pricing.
 Enhanced Pollution Liability: This coverage was marketed in October 2015 to approximately 8 viable carriers. Coverage was placed with Illinois Union Insurance (“Illinois Union”), in part due to the availability of coverage for regulatory fines and penalties. This coverage was remarketed for FY 2022 to 8 additional carriers to be sure continuation of coverage with Illinois Union provides the broadest coverage and best pricing, but no other reasonable and responsive quote was obtained.

Last year, a competing quote came in from Indian Harbor/AXA XL, which prompted Ironshore to reduce its original quote and offer another year of coverage at the same rate as Fiscal Year 2024 with broader coverage.

Ultimately, while the Indian Harbor quote was lower, it came with conditions and exclusions that the City was not willing to accept.

This year’s Illinois Union quote remains good, with just a 0.78% increase in premium.

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 Cyber Liability: Up through FY 2021, the City carried excess cyber liability insurance with Axis Insurance Company ($3M in excess of the $2M included in our APIP property policy), with extortion coverage of $750,000 and premiums of approximately $25,000. For FY 2022, at first Axis intended to double our premium to approximately $50,000, but ultimately decided to stop issuing cyber coverage all together.

Since FY 2022, therefore, the City has participated only in the APIP Cyber Liability program, which provides a $2M coverage limit and aggregate, as well as an extortion sublimit of just $750,000. Last year the annual premium was approximately $34,511.

Over the years, Alliant has worked closely with City staff (including IT) to review the City’s exposure/cyber posture and discuss the adequacy of the current APIP program. It has been the consensus of the group that the current APIP limits are insufficient. In 2023, the Alliant team completed a benchmarking analysis for the City using a software called Cybercube, which uses analytics to provide information that will assist in data-driven decision making. The program seeks to estimate an entity’s risk profile for a cyber event when compared to similar entities within a peer group. The result substantiated the belief that the City’s coverage was too low. The results indicated that the City should be purchasing $3.8M in limits to be on par with its peer group, or $7.2M to purchase at the 95th percentile (recommended).

Although the Alliant team has marketed the program and provided excess options several times over recent years, due to increased activity with cyber incidents worldwide (mainly breaches and ransomware attacks), cyber insurance had been unaffordable. A recent realignment of rates, however, has helped to reset the bar. Fortunately for commercial buyers, the premiums came down significantly last year. Thus, the City and Alliant looked once again look at options to increase the policy limits for FY 2025.

In total, the Alliant team approached 20+ markets, including PRISM.

The PRISM program provided the best option for the City, with an $18M policy limit/aggregate (subject to the pool/program aggregate of $115M), as well as various sublimits, the most notable of which are $7.75M extortion and data recovery cost sublimits, for an annual premium of $143,842.

Although a pool, the PRISM cyber program is fully insured, and members are not pooling any risk, so there is no opportunity for PRISM to assess members. The premium for this year is estimated not to exceed $187,000.  Deadly Weapons: The City purchases coverage through the Alliant Deadly Weapon Response Program (ADWRP) for events involving active assailants brandishing a weapon with intent on causing harm to persons or

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property while on City scheduled property. This program acts as a buy-down for other coverage programs and fills gaps in coverage that may exist under the City’s property and casualty policies. This year the program was marketed and viable options were obtained from three other leading markets in the active assailant space, with only one materializing into a highly competitive option. However, after much review and negotiation, it was determined that although another option was compelling, the current program with Beazley remains the best solution. Not only was pricing the lowest, the terms were broader and the carrier was willing to make concessions to enhance several areas of the program.

Joint purchase plans and any available stable pooled insurance programs were also reviewed to provide the City with the best renewal quotes possible. Thus, while other markets were explored, those selected continue to offer the broadest policy language at the best premium for the City.

After searching the markets, Alliant thereafter negotiates competitive coverage and premiums on the City’s behalf.

Pursuant to Corona Municipal Code Section 3.08.140(E), for the above reasons staff believes that the City Council should find that it is in the best interest of the City and its administrative operations to dispense with the City’s normal formal competitive bidding process and authorize the recommended purchases using Alliant’s competitive process, since it is an appropriate alternative to the City’s formal public competitive bidding procedures.

B. CONTINUED HARD & EXPENSIVE INSURANCE MARKET
General Liability Market Issues
Please See Exhibit “1” Attached Hereto: PRISM’s General Liability 1 Program Stakeholder Communication dated February 7, 2025. It summarizes the continued “hard” and expensive General Liability insurance market we are experiencing this year.

Stressors include the following:
 Larger Claims: More & larger claims (frequency & severity)  Larger Verdicts: In part due to “social inflation” ($5M - $10M verdicts have become $20M - $30M verdicts and higher)
 Nuclear Verdicts: Public agencies can experience verdicts that are so large (e.g. $25M - $1B+), particularly with law enforcement, road design and child service related claims, that they can easily exceed your ability to insure.

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 Litigation Financing: Third parties (plaintiff law firms and private equity firms) “investing” in lawsuits to earn a large return in the event the suit is successful is becoming more prevalent.
 Limited Insurers: These and other factors combine to limit the number of insurers and the amount of capacity that they have to insure.

Property / Workers’ Compensation Market Issues
While GL is certainly the most impacted market for the City again this year, the property, cyber and workers’ compensation markets also remain challenging: (1) Property:

Catastrophic events throughout the world and fewer carriers willing to participate in the market; and (2) Workers’ Compensation: While our estimated premium increase is also due to our rise in payroll, the market has been feeling pressure from catastrophic injury cases, cancer and PTSD claims, which are presumptions, which continue to rise dramatically.

In addition to the City having a few relatively large claims since FY 2015, including storm damages to trees in FY 2017 (appx $50,000), the Canyon Fire in FY 2018 (appx $1.05M), water seepage damage in FY 2018 (appx $63,000) the Biosolids Dryer explosion in 2020 (appx $5M), OIS claim in 2022 (appx $170,000), OIS claim in 2023 (appx $1.8M), as well as an increase in insurable property values, the “hard” insurance market has in large measure resulted in the following anticipated premium increases for this FY:

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PREMIUM INCREASES
FY 2025-26
Policy FY 25
Premium
FY 26
Premium (Est.)
%
Increase
Property $1,384,940 $1,544,047

11.49%
Rate = 5%
Property Value = 6.1%
General Liability $2,161,248 $2,916,000 34.92%
Workers Comp $539,749 $700,000 29.69%
It is also important and very instructive to note just how much the markets have caused insurance premiums to increase since about 2020 as compared to the prior 8 or so years (2012 through 2020):

PREMIUM INCREASES
FY 2012-20 AND FY 2020-26
Policy % Increase
(FY 2012-20)
% Increase
(FY 2020-26)
Property 77.65%
416.37%
Rate = 256.74%
Property Value = 44.75%
General Liability 99.70% 387.85%
Workers Comp 110.01% 186.93%
C. RECOMMENDED INSURANCE COVERAGES
While this Agenda Report provides a brief overview of the various insurance policies, executive summaries with binding quotes for them will be available for review when the insurers are prepared to bind. The executive summaries provide detailed information about insurance premiums, coverages, deductibles and related issues, along with proposed changes to insurance terms from last year. While final executive summaries and binding quotes are not yet available for Excess General Liability, Excess Workers Compensation, Property and Enhanced Pollution, Alliant has indicated that the quotes provided for these policies should be good “not-to-exceed” estimates.

All final executive summaries and binding quotes that we receive will be available to the City Council upon request.

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1. Excess General Liability
Excess General Liability Insurance is proposed to be renewed with PRISM, a joint powers insurance pool for excess general liability coverage. It will provide the City $25M in coverage per occurrence. Liability insurance provides protection against losses that exceed the City’s SIR for injury, property damage, errors & omissions, and unfair employment practices claims.

Final Insurance Quotes Not Yet Available: Because of the very difficult nature of the insurance market this year, Alliant has not been able to secure a final, binding Excess General Liability quote as of the publication of this report. However, the premium is estimated not to exceed $2,916,000.

Independence Day Event Insurance Coverage: Please also note that, in addition to this excess general liability policy, the Community Services Department (“CS”) routinely budgets and purchases a special event policy for the Fourth of July Family Parade and Festival, in order to obtain first dollar General Liability coverage due to the large crowd hazard. Limits of liability carried are typically around $2M, since the PRISM liability policy is available, if needed, to provide coverage above the special event policy.

2. Excess Workers’ Compensation
Excess Workers’ Compensation Insurance is proposed to be renewed with PRISM, a joint powers insurance pool for excess workers’ compensation coverage. It will provide the City with statutory workers’ compensation coverage and employer’s liability coverage of $5M per occurrence. The City’s workers’ compensation SIR per occurrence is $1M.

Final Insurance Quotes Not Yet Available: Because of the very difficult nature of the insurance market this year, Alliant has been unable to secure a final, binding Excess Workers Compensation quote as of the publication of this report. However, the premium is estimated not to exceed $700,000, an increase of approximately 29.69% from $539,749, based on actual payroll (currently estimated to be $102,530,676 up from $96,549,303 last year).

California’s Worker’s Compensation rates are higher for public agencies with a high percentage of safety personnel, as they tend to experience higher loss severity and frequency. Additionally, PRISM reports that the workers’ compensation market has its own set of problematic issues to hurdle, some similar to excess liability and others unique to the workers’ compensation system. While workers’ compensation is currently a more stable line of coverage, the aging workforce, medical inflation, presumptions such as cancer, heart, and post-traumatic stress, and the pandemic have disrupted the workers’ compensation environment.

Please see Exhibit “2” Attached Hereto: PRISM’s Workers’ Compensation Program Stakeholder Communication dated February 27, 2025.

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State Self-Insurance Fee: In addition to the excess policy premium, the City is assessed an annual fee by the State of California’s Department of Industrial Relations, Office of Self Insurance plans. The fee, which is intended to cover the State’s costs to administer selfinsurance plans, as well as an annual self-insurance license renewal fee and funding for various funds that protect against problematic insurers. The yearly assessment is based on the City’s paid indemnity loss experience taken from the prior year’s Self-Insured Annual Report. $151,108 has been included in the FY 2026 budget for the workers’ compensation fund.

3. Property
Property coverage is proposed to be renewed with APIP, which will provide the City with coverage of both real and personal property valued at approximately $807,192,271 (up approximately 6.1% from $760,215,998 last year), including boiler and machinery coverage.

Final Insurance Quotes Not Yet Available: The renewal rate is anticipated to increase no more than approximately 5%, from $0.1821772 per hundred dollars of value last year to $0.19128606 per hundred dollars of value this year. With the above property value increase, this collectively represents a maximum premium increase of approximately

11.49% from $1,483,271 to $1,544,047 for FY 2026.

4. Master Crime Liability
Master crime liability coverage is proposed to be renewed with AIG, which will provide the City with coverage of $15M per occurrence for employee theft, forgery or alteration, theft of money and securities, robbery, safe burglary, computer fraud, funds transfer fraud, money orders and counterfeit paper currency. The crime liability deductible per occurrence is $2,500.

Final Insurance Quotes Not Yet Available: The premium is estimated to be no more than $19,000 for FY 2026, which is up from $13,333 in FY 2025.

5. Airport Liability
The Airport Liability coverage with the Starr Indemnity & Liability Company provides Airport Owners and Operators General Liability and Hangar Keepers Liability coverage of $25M per occurrence. There is no SIR or deductible.

Final Insurance Quotes Not Yet Available: The premium is estimated to be no more than $5,359, which is up from $4,872 in FY 2025.

6. Enhanced Pollution Liability

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Effective October 22, 2015, the City Council authorized UD to purchase Enhanced Pollution Liability coverage due to a heighted awareness created by lessons learned from other water reclamation agencies. The goal was to cover litigation and other costs due to releases and odors, as well as associated regulatory fines and penalties.

In a supplemental action at the July 21, 2021 City Council meeting, you authorized a switch from Illinois Union/Chubb Insurance (“Illinois Union”) to Ironshore Specialty Insurance Company (“Ironshore”), in part due Illinois Union’s significant premium increase and its unwillingness to continue to provide “products” coverage (i.e. claims related to the water served to UD’s customers). Enhanced pollution coverage is proposed to be renewed with Ironshore, due in part to the inclusion of regulatory penalty and fine coverage not found elsewhere, with coverage of $10M per pollution condition, with a SIR of $250,000 per pollution condition.

The premium has been set at $122,491 for FY 2026, up from $121,554 for FY 2025.

7. Deadly Weapon Response Program
Several years ago the City chose to join a new program developed by Alliant, which provides certain coverages for third party liability, business interruption and crisis management for events occurring at City scheduled locations. While it does not provide coverage for employee or City contractor claims, it does provide other services, such as crisis management and counseling services, which can be utilized by such persons. In addition, the $500K coverage limit can be used to apply to the City’s SIR for its General Liability Insurance. Last year several enhancements to the coverage were added, including event attendee count increase from 500 people to 2,500 people, transit submit increase from $250,000 to $500,000 and additional Crisis Risk Services to address new legislation.

Final Insurance Quotes Not Yet Available: It is recommended to renew this coverage at an estimated premium of no more than $9,133, up from $8,303 for FY 2025.

8. Cyber Liability Program
In previous years, the cost of cyber liability coverage skyrocketed, capacity vanished, retentions increased, and security controls became mandatory. The difficult market conditions made the cost of a standalone cyber policy cost prohibitive. Fortunately, our IT department has a robust system of controls and training in place to provide protection from cyber-attacks, so we determined that the exorbitant premiums were better saved in the event of a ransomware event; additionally, our property coverage included a small amount of cyber coverage of $2M.

However, the market stabilized somewhat, and last year Alliant presented a proposal from PRISIM for standalone coverage that was attractive to the City, with an $18M policy limit/aggregate (subject to the pool aggregate of $115M) and $7.75M in extortion coverage.

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Final Insurance Quotes Not Yet Available: It is recommended to renew this coverage at an estimated premium of no more than $ $187,000, up from $143,832 for FY 2025.

D. RECOMMENDED NOT TO BE COVERED

1. Earthquake and Flood
Optional quotes were obtained in 2016 for Earthquake and Flood insurance on three City properties (City Hall, Police Headquarters and the Water Treatment Facility on Harrison), as a gauge of the feasibility of obtaining this coverage City wide. In addition to added protection, staff understands that public finance bond companies prefer such coverage to be carried if it is available at a reasonable cost with a reputable insurer.

Adding Earthquake and Flood to these 3 locations alone (with total insurable values of $109,333,838) would have cost at least a couple hundred thousand dollars. The deductible for Earthquake would have been $100,000 or 5%, whichever is greater, and the deductible for Flood would have been between $100,000 and $250,000 depending on the flood zone. Thus, providing such coverage City-wide would be quite expensive and could easily double the City’s property insurance costs.

While LRM does not recommend purchasing such coverage City wide, since it does not appear to be a reasonable cost and we believe there is some protection under State and Federal disaster assistance programs, the City Council could direct otherwise.

Please also know that the City’s current risk insurance program conforms to the practices of California municipalities of similar size and risk factors.

FINANCIAL IMPACT:

Sufficient funds to purchase the recommended insurance policies have been included in the proposed FY 2026 operational budgets.

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 strictly an action to purchase City Liability, Property and Workers’ Compensation Insurance Policies, and there is no possibility that adopting this resolution will have a significant effect on the environment. Therefore, no environmental analysis is required.

PREPARED BY: MARIA CONZELMAN, SR. PARALEGAL & CLAIMS MANAGER

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REVIEWED BY: DEAN DERLETH, CITY ATTOREY/LRM DIRECTOR
ATTACHMENTS:

1. Exhibit 1: PRISM Info (GL1 Program Stakeholder Communication) (02-07-25)

2. Exhibit 2: PRISM Info (Workers’ Compensation Program Stakeholder Communication (02-27-25)

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February 7, 2025
To: General Liability Program Members
From: Gina Dean, CEO
Re: GL Programs Stakeholder Communication
As we move forward into this new calendar year and enter the next renewal cycle, many of the same factors that have created hard market conditions remain. There seems to be general recognition that the higher frequency of very large losses that the market has experienced over the last 10-12 years is not going away, but instead, if anything it is accelerating. Per a report from the Swiss Re Institute, “US commercial casualty insurance losses grew by an average annual rate of 11% over the last five years, reaching $143 billion in 2023”. To put this in perspective, that amount was 33% more than the global insured losses for natural catastrophes in 2023 of $108B! Needless to say, this remains a big and growing problem that has similarly impacted PRISM’s GL Programs, as well. Our members have experienced the same sort of extreme large loss activity as others throughout the market, resulting in higher premiums in recent years. However, the ability to collectively retain more risk and the combined purchasing power of the group continues to produce a dramatically better result than what could be achieved through individual placements in the market. As the liability environment that we operate within continues to re-set, PRISM remains the best solution for California public entities.

As we forge ahead, PRISM and our members continue to maximize our collective strength to address these increasingly costly issues by taking action to prevent, control, and mitigate losses. We are also actively engaged in efforts to effect positive legislative reform, or to block adverse changes. Lastly, we continue to communicate on the trends and issues that we are faced with, so that we can effectively explain them to our various constituents along with a clear picture of what we are doing together to address them. The attached document is the first step in that effort. It will:
• Further explore the factors driving the losses and the hard market; • Discuss the risk control resources that PRISM brings to address the loss exposures; • Describe why being a member of the Program continues to provide value to the members;
• Advise on what you the member can do to mitigate increases; • Address how the allocation formulas ensure equity among those who have experienced losses and those who haven’t yet; and
• Provide talking points intended to help you communicate the message to your management and governing bodies.

To further enhance this communication, we plan to hold several web conference meetings over the coming weeks where we will discuss the above in greater detail and answer any questions the members may have in reviewing these materials. We are prepared to also

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have individual calls/meetings with members who may want assistance in preparing communications to their stakeholders. In the meantime, myself and the rest of the PRISM and Alliant staff stand ready to answer questions and assist in any way that we are able.

As previously noted above, the collective financial strength, expertise, and resources continue to make PRISM the best solution even, and perhaps especially, through these hard market conditions. Much of this is evidenced in our recent video: We are You! Please don’t hesitate to reach out to us for assistance.

Sincerely,
Gina Dean

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2025 Liability Insurance Market Update
The general liability market for 2025 will continue to be extremely challenging. We will again see reduced carrier capacity, heightened underwriter scrutiny, a push for aggregated limits and higher attachment points, and increased rates. There are many factors that one can point to as contributing to these hard market conditions, but it all boils down to the increase in the number and size of extremely large losses over the last decade.

Starting around 2013-2014, large liability claims activity increased significantly. Extremely large, so called “nuclear” verdicts and the resulting increased settlement values have had devastating impacts on the economics of liability claims. Claims that previously had resolved in the $5M-$10M range started costing public entities and their insurers $20M- $30M and higher. This increased frequency of severity turned out to be an industry-wide trend, but certainly seemed to have its origins in California, and tracks with PRISM’s experience, as well. The trend has continued and even worsened in recent years with U.S. liability costs increasing by an annual average of 11% over the last five years (2019-2023).

The rising claims costs cause carriers
to increase their reserves for prior year
claims to keep up with the adverse
development. As shown in the
adjacent chart, reported adverse
reserve development matched a 20+
year high in 2023. In short, the carriers
have not charged enough historically
to cover their consistently increasing
claims costs.

Going forward, the environment
remains difficult and is ever evolving.

As AmWins Insurance services noted
in their 2025 State of the Market, “The casualty sector continues to contend with an increasingly challenged legal environment, limited lead layer market alternatives, and constantly evolving liability exposures. Factors such as ongoing police reforms, tort protection and immunity erosion, revivor statutes for abuse claims and overall staffing shortages have adversely impacted liability loss severity trends and ultimate claim values, particularly for law enforcement, street and road design, as well as auto risks.” In addition to increasing reserves for historical claims, carriers have also been forced to take drastic action to protect their bottom line going forward. These actions have included:
• Withdrawing from the market altogether;
• Reducing capacity (amount of limit carriers are willing to put at risk); • Increasing attachment point;
• Pushing for aggregate limits;
• Restricting coverage through exclusionary language; and • Dramatically increasing rates.

Some, or all, of these will continue for the 2025/26 renewal. 5%
15%
25%
35%
45%
200120032005200720092011201320152017201920212023
~45%
Percent of P/C Companies Reporting Adverse
Reserve Development as of 9/30 Each Year

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Nuclear Verdicts
We have likely all heard the term “nuclear verdicts,” but what are they and why are they happening with more frequency? Any exceptionally high jury award that exceeds what would be considered a reasonable or rational amount can be considered a nuclear verdict, but legal experts officially define a “nuclear verdict” as one that exceeds $10M. This amount would have been something very rarely observed as recently as 10 years ago, but are a disturbingly frequent fact of life today. According to the U.S. Chamber of Commerce Institute for Legal Reform, of the 1,288 nuclear verdicts between 2013 and 2022, half of the verdicts were between $10M and $20M, one third were between $20M and $50M, and 115 of the verdicts exceeded $100M. Further, the median nuclear verdict value was $21M, while the mean value was $89M. The numbers are staggering, and it’s not slowing down as 2023 saw a record 27 U.S. verdicts awarding $100M or more. The fear of these kind of huge verdicts also cause extreme increases to settlement values as well, negatively impacting all case values.

It is important to note that public entity insurance carriers also participate in the larger U.S. casualty market, where mass tort and other catastrophic liability loss exposures have also been on the rise. The concerns we face in the public sector are shared by America’s business community at large as evidenced by the following from a survey of U.S. business leaders recently released by Sentry Insurance:
“Nearly three-quarters (72%) of executives say the risk of multimilliondollar verdicts – sometimes referred to as nuclear verdicts – keep them awake at night. Not only that, 82% believe litigation could ultimately put them out of business.”
Nuclear verdicts often involve disproportionately large non-economic damages awards, the part of the award intended to reimburse the injured party for intangible losses such as pain and suffering. These damages are subjective and, unlike economic damages, are difficult to quantify, assess, or estimate. The recent trend of increasingly large non-economic damages awards has been a main driver in the growth of nuclear verdicts described above and are the cumulative result of what is referred to as social inflation.

Social Inflation
According to the Swiss Re Institute, social inflation (now sometimes referred to as Litigation Inflation) describes the increasing severity of liability insurance claims beyond that which can be explained by economic drivers. They note that U.S. liability claims costs have risen

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well above average rates of
economic inflation since the mid
2010’s. As their chart at the left
illustrates, there have been two
prior episodes of social inflation
(one in the mid-80s and the other in
the early 2000s), with the current
episode being mostly caused by
outsized court compensation
awards in bodily injury cases.

These larger awards (nuclear
verdicts) are the result of many
complex and interrelated factors.

Aggressive plaintiff bar advertising and changes in the regulatory and legal environments, drive an increasing propensity for people to sue. A growing distrust of large corporations (along with government entities) combined with courts and juries favoring plaintiffs and wanting to punish those large corporations, lead to dramatically larger jury awards. The size of those awards makes it lucrative for third parties to finance plaintiff litigation, increasing the odds of even larger future awards. On and on it goes, leading to more and more nuclear verdicts.

Rand, the nonprofit, nonpartisan research organization, published a study in July of 2024 titled “What is the Evidence for Social Inflation.” In the study, they analyzed U.S. verdict data from 2010 to 2019 and found measurable increases in tort filings in state courts (about 10% increase), the percentage of verdicts that result in monetary awards to the plaintiff (from 53% to 64%) and an increase in the trial awards per plaintiff (a 7.6% compound annual growth rate after adjustment for economic inflation). Finally, as illustrated in the following chart, the study identified that the percentage of large awards (at least $5M per plaintiff) grew from 5.5% in 2010 to just under 12% in 2019.

Aggressive
Plaintiff
Bar Ads
Social Inflation’s Interrelated Factors
Courts/Juries
Favoring
Plaintiffs
Increasing
Propensity
to Sue
Size of Jury
Awards
Litigation
Financing
Growing
Distrust of
Large Corps.

Changes in
Regulatory
and Legal
Environment

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Reviver Statutes
California’s legislature passed AB 218 in late 2019, increased the amount of time for survivors of childhood sexual abuse to file civil lawsuits against abusers and/or entities, which failed to prevent their abuse. Under the new law, abuse survivors can bring civil claims until the age of 40, or within five years of their discovery of the abuse and/or damages associated with their abuse, whichever is later. AB 218 also created a threeyear window for adult survivors, who were abused as minors, to file civil sexual abuse lawsuits that were previously barred by the statute of limitations (this look-back window closed on December 31, 2022). Finally, the legislation allowed for survivors to be awarded triple the damages in cases where defendants willfully concealed or covered up sexual abuse. While this significantly impacts schools, and we do have schools in our Programs, our city and county members are also receiving a large number of claims going back to the 1960s and 1970s where records are hard to come by and many witnesses have deceased.

California is not alone in enacting this kind of
“reviver” legislation. As the May 2024 chart
from Child USA illustrates, 30 U.S. states and
territories revived previously expired child
sexual abuse claims with a window and/or age
limit revival law since 2002. These retroactive
statutory changes impact the finances of
liability insurance companies, who are now
facing claims brought against their insureds
from prior years that would have been barred
under the prior statutes of limitations.

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The Plaintiff Bar
These increased payouts dramatically impact defendants, as well as society (and for government agencies ultimately the tax payers), but are a massive incentive for the plaintiff bar to keep seeking cases and pushing for larger and larger outcomes. We have all seen the billboards, heard the radio ads, and watched the commercials on cable television. Been injured in an auto
accident? Call 1 (800) HURT911. It is
estimated by the ATR Foundation that
California law firms spent more than
$352M on legal advertising during the
18-month period between January 1,
2023 and June 30, 2024. The next time
you are driving down the highway, count
how many law firm billboards you see. Or, when you are watching the morning news, pay attention to how many law firm ads are shown. When you start paying attention to the volume, it really is astonishing.

Once this massive investment succeeds (a client has been acquired and a case is brought to trial), plaintiff attorneys implement numerous strategies to instill anger and/or fear in the jury with the goal of convincing them to protect and punish with outrageous punitive damages. The most famous and successful strategy used in recent years is called the Reptile Theory, which is used to influence a jury outcome by focusing the jury’s reaction to instinctively favor safety and survival of their families and community (versus plaintiff’s actual injuries) by demonstrating the defendant’s conduct endangers their families and community as a whole. It intentionally plays on the jurors’ fear that this could happen to them or theirs, and it’s up to them to do something about it by awarding a huge, punishing verdict.

Another successful plaintiff bar tactic is known as “anchoring.” This involves talking about a desired (and astronomical) demand early and often throughout the trial causing the jury to become desensitized to the amount, so that when that amount is demanded in closing arguments, it seems not only reasonable, but appropriate. For example, the plaintiff attorney may ask each prospective juror during the jury selection process if they would be comfortable awarding $30M to the plaintiff if the defendant is found to be liable. They then discuss $30M in each stage of the trial until, at the end, guess what the jury comes back with…a $30M award! These are only two of a myriad of tactics and strategies used by the plaintiff bar to drive up the cost of claims outcomes, and since the plaintiff bar takes a “high tides raise all boats” attitude towards their litigation outcomes, they are very good at sharing information and coordinating strategy.

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Litigation Financing
With millions of dollars at stake, it is no
wonder that speculators have gotten
involved in the form of litigation financing.

Otherwise known as “non-recourse
financing,” investors put up large amounts
of money to support the plaintiff’s litigation
effort. Funds are used to pay for the
litigation, which the plaintiff (or their legal
team) might not have been able to afford
otherwise. If the plaintiff wins, they must pay back the financed amount plus an agreed upon percentage of the award. If they lose, they are not required to pay back anything.

As shown in the chart above from the global market research company, Market Research Future, the global Litigation Funding Investment Market is growing rapidly at a compound annual growth rate of 9.6% and is projected to be a $60B market by 2034.

This huge and growing industry is largely un-regulated. The arrangements are considered investments, not loans, so predatory lending caps do not apply or are not enforced. Even worse, in most states, including California, the plaintiff’s attorney is not required to disclose the arrangement to the jury. This may be changing. In early 2025, California representative, Darrell Issa, introduced into the U.S. House of Representatives, the Litigation Transparency Act of 2025. This act would apply to all civil litigation in federal court and would require anyone involved in a federal civil lawsuit where there is a third party (other than their lawyer) that stands to get paid, to let the court and all other parties know who that outside funder is. This would need to be done in writing within 10 days of making such an agreement or when the lawsuit is filed, whichever comes later. There has also been similar legislation in various states around the country, including California with Indiana, Louisiana, and West Virginia enacting some form of related transparency statutes in 2024. It is this type of legislative action that will be needed to address many of the issues detailed in this correspondence.

Jurisdiction
Then there is the jurisdiction within which we operate. Since 2002, The American Tort Reform Foundation’s (ATRF) Judicial Hellholes® program has identified and documented places where judges in civil cases systematically apply laws and court procedures in an unfair and unbalanced manner, generally to the disadvantage of defendants. More recently, as the lawsuit industry has aggressively lobbied for legislative and regulatory expansions of liability, as well, the Judicial Hellholes® report has evolved to include such law- and rule-making activity, much of which can affect the fairness of any given jurisdiction’s civil justice climate as readily as judicial actions. Unfortunately, as shown in the following, in ATRF’s annual ranking of the nation’s worst jurisdictions, California has ranked in the bottom five (meaning the worst) jurisdictions for the last nine years.

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Economic Impact
The impact of social inflation-driven costs on the insurance industry has been both obvious and dramatic. The impacts on society at large and the average citizen are also astounding. When excessive nuclear verdicts are awarded, they drive higher and higher claim settlements as defendants look to reduce their worst-case scenario, but at an everincreasing price. The cycle continues as plaintiff attorneys follow the money, soliciting more clients and developing more strategies to drive juries to award even larger verdicts.

This has dramatically driven up the cost to the insurance industry and resulted in significantly higher premiums to all of us…the insurance consumers.

The economic impacts can be, and are, measured with horrifying results. Lawsuit abuse and excessive tort costs wipe out billions of dollars of economic activity. According to the U.S. Chamber of Commerce Institute for Legal Reform’s 2024 update on tort costs, these expenses amounted to a staggering $529B in 2022, representing 2.1% of the U.S. GDP and $4,207 per American household. This highlights the growing financial burden that the tort system places on the economy. Closer to home, a recent study by The Perryman Group, showed that excessive litigation has also cost the jobs of over 825,000 Californians. The same study indicated that if the California legislature enacted specific reforms targeting lawsuit abuse, the state could increase its gross product by over $89.5B.

The PRISM GL Programs
Collectively, the members of PRISM’s GL1 and GL2 Programs (the GL Programs) have experienced their fair share of large losses, contributing to the challenging conditions described above. In fact, over the last 10 years, the PRISM GL members have experienced an average of 126 claims, per year, that exceeded their current Self-Insured Retention (SIR). These claims collectively exceeded the collective SIRs by more than $188M, per year. The figures above are un-trended. It is important to note that insurance carrier underwriters and actuaries apply some trend when trying to project future years’ claims costs based on the historical losses. In recent years, we have seen trend factors between 7% and as much as 13% used in these calculations, making the GL Programs’ results significantly higher.

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PRISM’s Response
PRISM has always been proactive in managing the GL Programs with our exposure and experience-based allocation approach to ensure an equitable distribution of costs amongst the members. In recent years, the Program has been loss challenged, causing some members to take on increased SIRs and/or Individual Member Corridor Deductibles (IMCDs) to manage the increase in premiums. Both are effective tools to explore, and we are happy to work with you to determine if an increased SIR or IMCD is appropriate for you.

PRISM was also among the first Joint Powers Authorities (JPAs) in the nation to establish its own captive insurance company, PRISM Affiliate Risk Captive (ARC). The Captive has been used strategically to earn greater investment returns on monies held to pay claims in the group corridor deductible layers. Public entities are very restricted in what they can invest in, impacting overall returns. The Captive, while still very conservative, is not as restricted and can therefore generate higher yields. This is a benefit to PRISM members as it allows PRISM to discount the premiums to the members in anticipation of the investment returns.

The organization has also hired staff to assist in reducing the overall cost of risk in many different areas. PRISM’s claims staff works closely with the members and their TPAs to accurately reserve open claims and to develop strategies to resolve them as cost effectively as possible. With the right facts and in the right circumstances, this can mean taking the case to trial and achieving a defense verdict. Other times, it is more cost effective to reach a settlement. PRISM members can rely on their staff’s expertise to assist in making these decisions. PRISM staff see large complex claims from all over the state and have relationships with complex claims resources at the carrier level. They are able to leverage this experience and expertise to assist in strategy, suggest expert witnesses and other resources, determine an appropriate case reserve, and advise on settlement negotiations.

PRISM is among the nation’s few JPAs with internal actuarial staff, and the only one we are aware of with its own Data Scientist. These specialized human resources leverage the massive volume of data that PRISM’s Data and Analytics Department collects from the membership on a monthly basis to better predict future costs and identify loss trends.

This trend identification allows PRISM’s robust Risk Control and Member Services staff to tailor training and services to address problem exposures and developing member needs. A new service offering, Benchmark Analytics, is specifically designed to address one of the Program’s lead loss drivers, law enforcement liability. This is a third-party data analytics firm that provides an evidence based early intervention system for law enforcement officers. They work with police and sheriff departments to better identify atrisk behavior for proactive intervention and officer support.

PRISM also takes an active role in the legislature. The Legislative Committee works with PRISM’s lobbyists to oppose legislation beneficial to the plaintiff’s bar and support that which is helpful to the defense. In recent years, they have been successful in inserting immunities into numerous bills that otherwise would have created additional liability

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exposure for public entities. PRISM also works with other JPAs and associations to gather data to support legislative efforts.

Finally, PRISM and its broker, Alliant, have developed long-term relationships with excess insurance and reinsurance underwriters. They work throughout the year to not only maintain their participation on the Program in a very difficult claims environment, but also to analyze structural changes and other strategies to make the overall cost as efficient as possible. This can include changes in the layering of the Program to maximize the available carrier capacity as well as the prudent use of self-insurance in the pool layer and/or corridor deductibles, or PRISM quota share participation in the excess layers.

While PRISM’s premiums will increase for 2025/26, the premiums are still less costly than an entity would likely be faced with outside of PRISM. A testament to the continued competitiveness of the Program are the new members that join each year at considerable price savings compared to their other stand-alone or JPA options. In addition to premium savings, those entities enjoy broader coverage and avoid coverage restrictions and limitations that are often quoted outside of PRISM.

Member’s Response
There are several steps that can, and should, be taken by members during these turbulent times.

1. First, communicate the state of the market to all your stakeholders so there is an understanding that this is an industry-wide problem. We are happy to participate on conference calls or attend meetings to assist with this communication, if so desired.

2. The severity of claims is on the rise. If you are not yet participating in the Optional Excess Liability (OEL) Program, consider doing so. This Program provides three options of additional limits excess the GL Programs: $10M, $15M, or $25M.

3. Anticipate an increase in your own SIR funding being suggested by your actuary.

4. It may be tempting to consider increasing your SIR to save premium dollars; however, this needs to be weighed against the increased cost to fund the higher SIR. In addition, given these new severity trends, all things being equal, the bias should be toward transferring risk due to the uncertainty of these changing claim trends.

5. Manage your individual risk by taking advantage of the best practices programs and service partner programs PRISM offers. The cheapest claim is the one that didn’t happen.

6. Vigorously defend the claims that are defensible.

7. In a hard market environment, the quality of loss data will undergo additional scrutiny. Make sure your data is in good condition.

8. Stay up to date on maintenance, inspections, and trainings.

9. Support legislative change beneficial to defendants.

10.Help educate the public that the costs of nuclear verdicts are not borne by the insurance industry, but rather by the public entities and ultimately the tax payers.

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The importance of #10 cannot be stressed enough. When members have high-value claims settle or awarded by verdict, it can be tempting to comfort constituents by letting them know “we’re covered by insurance.” However, the public won’t ever truly understand the magnitude and impact of social inflation and nuclear verdicts if entities aren’t forthright in acknowledging that these do in fact cost the entity, and ultimately the tax payer, a lot of money.

Last, but not least, PRISM Risk Control staff wants you to know that you are not alone while managing the multitude of risks facing your agency. Our team of specialists is here to help, whether by providing direct consultation or connecting you with one of our trusted partners. Regardless of the topic, we encourage you to reach out to the Risk Control team for assistance with your organization’s risk management challenges.

We would also like to call your attention to a few services and resources we think you should be taking advantage of:

General Liability
• PRISM members are provided free access to our in-house Labor Law/Employment Practices Services. The service provides members with unlimited telephone calls, email communications, and/or faxes to answer employment law questions as they arise. PRISM also provides step-by-step coaching and advice in a privileged context for employment law decisions and subsequent actions. • Staff has developed Resources specifically for Law Enforcement. The online brochure is designed to be a one-stop-shop for law enforcement related resources including Benchmark Analytics’ Early Intervention System, POST approved training, ConcernPlus First Responder Program (an EAP of culturally competent clinicians, Peer Support Services, and additional PRISM service partnerships. The PRISM GL1 Program, specifically, has created a Benchmark Analytics Early Adopter Program, which offers a matching grant and potential premium credits for members who start using the service by May 1, 2025. The GL2 Program is also considering ways to promote the use of Benchmark Analytics. • The School Liability Handbook: Student Activities and Employment Issues was created in conjunction with Lozano Smith, a law firm specializing in school liability legal services. The Handbook consists of 5 modules, such as School Activities and the Law and Employment Issues for School Districts. • PRISM partner, Plexus Global, provides an electronic platform that allows employers to monitor employee driving records on demand and provides automatic e-mail notification when a reportable event occurs. The system also includes a record management system.
• PRISM staff developed a pair of resource documents designed to assist members with Road Maintenance risk. These documents include discussions regarding the use of Geographical Information Systems and other general design and maintenance best practices.

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Talking points for the GL Programs
Aggregate Claims Trends
• As both frequency and severity have risen for the GL Programs, just like the general liability industry, the claims trend and lack of capacity will result in anticipated rate increases.
• The natural result of this significant change in losses is that PRISM has adjusted forecasts and rates to account for new loss trends, as have our carriers.

The total number of claims in the GL Programs over $1M in the last five years has more than doubled. This is a big indication of how jury verdicts (and settlements) are increasing!
Benefits of Being in a Pool
Economies of scale benefits
• Access to insurance options. PRISM’s size provides more leverage in the insurance market. It also allows access to the reinsurance markets, which are not available to individual buyers, thus expanding the universe of available coverage options. PRISM has been able to leverage this access and the Program’s premium volume to secure unique and beneficial reinsurance agreements. • Maintaining broad coverage. Public agencies with stand-alone placements are seeing reductions in their coverage limits and/or exclusions. Although the GL Programs continue to face the potential for coverage restrictions, PRISM has largely been able to maintain broad coverage in the Programs.

Equitability
• PRISM’s members with large loss experience have better coverage and premium options in the pool than finding coverage alone, but members with less severe loss experience also receive benefits from pooling, as they are recognized and rewarded through premium reductions.

General Market and Program Information
• The size of our Program, with 130 members, more than $8.4B in payroll, and 703,000 ADA, offers great purchasing power to our members and provides much greater stability than smaller programs or individual risks. • The liability market continues to harden. We continue to see a significant increase in plaintiff demands and high dollar liability claims. Jury verdicts (and settlements) are much higher than they have been in years past and that is affecting the industry’s surplus.
• There are many factors causing this including tactics that plaintiff’s counsel are using (such as the use of the Reptile Theory and Anchoring) to drive up claims’

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verdicts and settlements. The selection of appropriate defense counsel, who are experienced in dealing with these tactics, has never been more important. • Markets continue to be more judicious with how and where they deploy their capacity and/or limit their exposure, with some leaving the market entirely. The overall “supply” of limits has been reduced by more than 50% in the last five years.

The size, stability, and premium volume of the GL Programs have attracted markets that may not consider participation otherwise.
• We have always been proactive in our management and funding approach, and this remains the same today. One of the strengths of the GL Programs is the active involvement of the Underwriting and GL2 Committees and their ability to be flexible. This approach often means modifying the program structure and the Program's retained risk to keep premiums as low as possible for the members. • We are not unique in experiencing rate increases for liability coverage, as the claims environment in California and across the nation is increasingly adverse for public entities.
• Our membership has increased every year. This shows that the Programs are still competitive in the market.
• The benefits of pooling shine brightest during a hard market when our economies of scale, our leverage in the reinsurance markets, and our sharing of best practices help our members manage risk.

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1 Safety National Carrier Chronicles
February 27, 2025
To: Excess Workers’ Compensation Program Members
From: Gina Dean, CEO
Re: EWC Program Stakeholder Communication
As most of you are aware, the excess workers’ compensation environment has its challenges impacting California public entities. As PRISM members begin their budgeting process, I want to take this opportunity to provide some background information on the state of the market and the status of the Excess Workers’ Compensation (EWC) Program.

Background
The excess workers’ compensation market has its own set of challenges, some similar to excess liability and others unique to the workers’ compensation system. While excess workers’ compensation continues to be the more stable line of coverage, there are headwinds leading to underwriter concerns. Medical inflation, the aging workforce, workplace violence, life expectancy, mental health exposures, and presumption laws are all contributing to increased claims severity.

Rising medical costs on catastrophic workers’ compensation injury claims continue to be a substantial industry concern, creating never-seen-before levels of severity despite the industry’s reputation as the most stable property and casualty insurance line.1 Increasing Claims from Labor Shortages
Studies show that high rates of overtime and absenteeism in a workforce can lead to increased claim frequency, which is likely associated with fatigue and over-exertion. This is a growing challenge as employers try to maintain the same productivity levels despite employing fewer people.

Eroding Exclusive Remedy
Multiple high-profile cases last year involved plaintiffs pursuing civil litigation in workers’ compensation matters. This includes workplace shootings, allegations of defamation, and disputes over unpaid medical bills. While exceptions are still rare, there is increasing evidence that the courts are willing to give plaintiffs the opportunity to prove their case rather than dismissing on motion for summary judgment.

Rapidly Growing Aging Workforce
The number of employees over the age of 65 in the workforce is growing rapidly, and workers over the age of 75 are the fastest-growing group. When injured, older workers tend to have more severe injuries and slower recovery times.

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1 Safety National Carrier Chronicles
Rising Medical Inflation
Due to fee schedules, medical inflation in workers’ compensation tends to lag behind regular inflation. However, many states are adjusting their fee schedules because of the increasing care costs. A growing shortage of medical providers will only make this worse.

Increasing Catastrophic Claims Cost
While catastrophic injury claims are rare, they are incredibly expensive, and their costs are dramatically increasing. This is driven by higher accident survival rates, higher costs for new medical care, and increased life expectancies for seriously injured workers.

Expanding Mental Health Claims
Many states have very limited compensability when it comes to mental health claims where no physical injury is involved. Recently, Post-Traumatic Stress Disorder (PTSD) presumption laws have been passed for first responders. Since these are new claims in the workers’ compensation system, it will take years to understand their full impact on increasing costs.

As one of the nation’s largest excess and high deductible workers’ compensation carriers, Safety National’s claims over the last six years show that claims at $2M incurred increased by 91%, and claims with $10M incurred increased by 183%.

While PRISM has a significant pooling layer with its own challenges, we are also reliant on reinsurers to provide coverage for catastrophic claims. The factors noted above, along with projections and risk modeling results for catastrophic claims, have resulted in rate increases by reinsurers for the past few years. PRISM’s Underwriting Committee has been working with Alliant and reinsurers to find creative ways to stabilize costs going forward, but increases are still likely.

What advantages does PRISM have over a stand-alone open market placement? PRISM’s EWC Program’s size is an advantage. The size of the EWC Program creates stability and offers economies of scale that could not be realized without being in a large pool. Because of this, we have been able to secure unique reinsurance agreements largely due to the Program’s premium volume and diversification of risk.

The EWC Program offers self-insured retentions well below the market minimum attachments. The market’s minimum attachment for entities with law enforcement and/or firefighter exposure is generally $1M and for all others is $500k. Of the Program’s 180 members, 75% have a self-insured retention of $500k or less.

Pools have an advantage in challenging markets. If we have learned from history, we know that JPAs (self-insured pools) have benefited members in turbulent markets. All members benefit from our flexibility, economies of scale, our leverage in the insurance markets, and our sharing of best practices to help manage risk. Pooling also provides

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1 Safety National Carrier Chronicles
stability for the members when one might experience adverse loss development when compared to an individual self-insured bearing the costs alone. This can also be beneficial with your organization’s budget year-over-year with more consistent funding expectations, versus having to fund unexpected loss developments.

What you can do to manage your risk
One of the most impactful ways to control costs is to close your claims via Compromise and Release (C&R). PRISM’s Data Scientist conducted a study on claims closed via C&R versus via Stipulated Awards. Findings indicated a 30%-60% lower loss ratio for members with a high C&R culture compared to those who do not. We’ve heard members say they don’t settle by C&R if the injured worker is still employed by the entity because they might file a new claim. We found no evidence of that sort of trend. In fact, the only trend we could point to is that not utilizing a C&R ultimately costs more money. Read PRISM’s Wavelength for more details on the study.

Another way to mitigate your risk is to prevent the injury from happening in the first place.

PRISM Risk Control wants you to know that you are not alone while managing the multitude of risks facing your agency. Our team of specialists is here to help, whether by providing direct consultation or connecting you with one of our trusted partners. There are over 40 master service agreements for members to take advantage of, so see our Quick Start Guide for reference. Regardless of the topic, we encourage you to reach out to the Risk Control team for assistance with your organization’s risk management challenges.

Following are a few services and resources specific to your workers’ compensation risk that we think you should take advantage of:
• Returning employees to work early in the life of a claim can be one of the most effective cost-control techniques available, while also improving employee morale and aiding in the employee’s ultimate recovery from their injury. PRISM has partnered with Norm Peterson and Associates to offer a discounted rate on return to work services.
• The Workplace Violence Prevention guide describes methods public agency employers can adopt to both prevent and protect employees from workplace violence, as well as protect the members of the public they interact with. • Safety Talks: A Tailgate/Toolbox Resource is a selection of safety meeting topics which may be used to plan safety meetings. The guide includes over 200 topics to choose from such as: safe driving, portable ladders, working safely, hazard communication, and emergency preparedness.
• PRISM has partnered with Company Nurse, a first call, first reporting system that provides both a medical needs triage at the time of injury and a means of completing the first report documents for the member. As a result, more injuries are designated as first-aid, while others are immediately directed to the appropriate level of medical care.

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1 Safety National Carrier Chronicles
To assist members with providing this message to your stakeholders, attached is a onepage information sheet that summarizes much of this material. We are prepared to also have individual calls/meetings with members who may want assistance in preparing communications to their stakeholders. In the meantime, myself and the rest of the PRISM and Alliant staff stand ready to answer questions and assist any way that we are able.

As previously noted, the collective financial strength, expertise, and resources continue to make PRISM the best solution even, and perhaps especially, through these hard market conditions.

Please don’t hesitate to reach out to us for assistance.

Sincerely,
Gina Dean

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EXCESS WORKERS'
COMPENSATION PROGRAM:

STATE OF THE MARKET
Empowering PRISM Members
The Excess Workers' Compensation (EWC) market has its own set of problematic issues to hurdle, some similar to the excess liability programs, and others unique to the workers' compensation system.

Questions? Please reach out to PRISM Member Services: [email protected] JANUARY 2 0 2 5
Catastrophic Claims
Major Impact on the EWC Market

1. Accident Survivability: Increased due to
better care on the scene, air ambulances,
Level 1 trauma centers.

2. Life Expectancy: Increased due to
improved medical science used to prevent
complications associated with burns or
quadripalegia.

3. Medical Advances: Improved outcomes
and quality of life.

With the common goal of optimal recovery,
this often results in significant costs, along
with changes to projections, risk modeling,
and reinsurance market.

Power of Pooling:
- Advantages and benefits in challenging and turbulent markets. - Ability to leverage the insurance markets with our flexibility and economies of scale. - Provides stability to members for individual adverse loss development. - Beneficial to member's budget with more consistent funding expectations vs. funding unexpected losses throughout the year.

According to Safety National:
- Over the last six years claims at $2 million incurred increased by 91%, and claims with $10 million incurred increased by 138%.

Safety Talks:

A tailgate/Toolbox Resource
Guide Includes:
- Selection of safety meeting topics
- Over 200 topics
PRISM Risk Control Services
PRISM Team
- Direct consultation
- Coordination with one of our
trusted partners for services
Company Nurse
Injury Reporting/Triage:
- First call/reporting system
- Medical triage
- Directed to appropriate medical
care, if indicated EWC Market:

1. Is the more stable line of coverage
compared to excess liability and property.

2. Disruptions to the workers'
compensation environment include:
- Aging workforce
- Medical inflation
- Presumptions (cancer, heart, PTSD)
- COVID-19 pandemic
- Rising catastrophic claims
- Home health care
- Skilled care facilities
- Workplace Violence
Top 3
RWays to
Manage Your
Risk
Return to Work
Early Return to Work Benefits:
- Cost effective
- Improves employee morale
- Improves outcome of ultimate
recovery from injury
C&R!
PRISM's Data Scientist Study:
- Members with a high C&R culture
indicate a 30% - 60% lower loss ratio,
compared to those who do not.
- Myths: If they are still working, they
will file another claim. False. The
study showed no evidence of a high
recidivism rate.

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DATE: 06/04/2025
TO: Honorable Mayor and City Council Members
Honorable President and Board Members
FROM: Utilities Department
2025-227

REQUEST FOR CITY COUNCIL AND

CORONA UTILITY AUTHORITY ACTION
SUBJECT:

WESTERN RIVERSIDE COUNTY REGIONAL WASTEWATER AUTHORITY FISCAL YEAR 2026 BUDGET
EXECUTIVE SUMMARY:

This staff report asks the City Council to ratify the Western Riverside County Regional Wastewater Authority Fiscal Year 2026 budget. Corona’s Fiscal Year 2026 obligation is $6,090,549, which is included in the City’s Proposed Fiscal Year 2026 Utilities Department’s operating budget within the Sewer Capacity Fund 440, and the Sewer Utility Fund 572.

RECOMMENDED ACTION:

That the City Council approve the proposed Western Riverside County Regional Wastewater Authority Fiscal Year 2026 budget.

That the Corona Utility Authority review, ratify, and to the extent necessary, direct the City Council to take the above actions.

BACKGROUND & HISTORY:

The Western Riverside County Regional Wastewater Authority (WRCRWA) exists for the purpose of operating a cost-effective regional water reclamation treatment system for the

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benefit of its member agencies. The City of Corona is a member of WRCRWA, along with its other member agencies of the City of Norco, Jurupa Community Services District, Home Gardens Sanitary District, and Western Municipal Water District.

On July 18, 2012, the City Council and the Corona Utility Authority approved the Project and Capacity Agreement for the expansion of the treatment facility from 8 million to 14 million gallons per day. The expansion provided the operational capacity required by Corona and other member agencies. The WRCRWA treatment plant expansion was completed in Fiscal Year 2018, and, according to Addendum No. 6 to the Joint Exercise of Powers Agreement creating the Western Riverside County Regional Wastewater Authority (City of Corona Membership), the City of Corona will now assume its fair share responsibility of the administrative costs of the plant. The City’s original owned capacity was 2.37 million gallons per day, but the Transfer Agreement with Home Gardens Sanitary District approved by City Council on April 17, 2019, increases capacity to 2.62 million gallons per day.

ANALYSIS:

The WRCRWA Fiscal Year 2026 proposed budget was approved by the WRCRWA Board of Directors on April 17, 2025. The approved budget requires ratification by each member agency’s governing body. Corona’s Fiscal Year 2026 obligation is outlined in the following table. Staff has reviewed the budget documents and recommends that the City Council approve the item.

Expenditure Category Amount Fund Name
Operations:

Treatment System $1,667,901 Sewer Utility Fund 572
Conveyance System $108,788 Sewer Utility Fund 572
General & Administration $356,606 Sewer Utility Fund 572 Debt Service:

SRF Loan Payment $1,903,189 Sewer Capacity Fund 440
Capital:

Non-Replacement Capital $1,723,758 Sewer Utility Fund 572 Asset Replacement Reserve $330,307 Sewer Utility Fund 572 Total Member Contribution $6,090,549
FINANCIAL IMPACT:

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Funding for the recommended action is included in the Proposed Fiscal Year 2026 Utilities Department budget, with $4.2M available in the Sewer Utility Fund 572 and $1.9M in the Sewer Capacity Fund 440. The $1.9M loan portion is accounted for separately as a debt service obligation.

ENVIRONMENTAL ANALYSIS:

This action is categorically exempt pursuant to Section 15301 of the Guidelines for the California Environmental Quality Act (CEQA), which states that operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the CEQA determination, and is therefore exempt from CEQA. This action involves budget approval for operations and maintenance of an existing facility. Therefore, no environmental analysis is required.

PREPARED BY: AFTAB HUSSAIN, ASSISTANT UTILITIES DIRECTOR REVIEWED BY: TOM MOODY, UTILITIES DIRECTOR
ATTACHMENT:

1. Exhibit 1 – WRCRWA Fiscal Year 2026 Budget

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Expenditure Category Corona HGSD JCSD Norco Western Total Operations:

Treatment System $ 1,667,901 $ 646,867 $ 5,310,410 $ 2,067,623 $ 1,209,982 $ 10,902,783 Conveyance System 108,788 41,997 129,466 - 83,933 364,184 General & Administration 356,606 102,082 816,655 367,494 262,690 1,905,527 Total Operating Contributions $ 2,133,295 $ 790,946 $ 6,127,065 $ 2,564,583 $ 1,556,605 $ 13,172,494 Debt Service:

SRF Loan $ 1,903,189 $ 70,887 $ 2,064,704 $ 408,275 $ 39,481 $ 4,486,536 Capital:

Pay-go Capital Improvement Projects (1) $ 1,723,758 $ 493,437 $ 3,637,081 $ 1,766,091 $ 1,280,183 $ 8,900,550 Asset Replacement Reserve Funding 330,307 94,553 497,397 331,765 251,958 1,505,980 Total Capital Contributions $ 2,054,065 $ 587,990 $ 4,134,478 $ 2,097,856 $ 1,532,141 $ 10,406,530 Total Member Contributions $ 6,090,549 $ 1,449,823 $ 12,326,247 $ 5,070,714 $ 3,128,227 $ 28,065,560 Expenditure Category Corona HGSD JCSD Norco Western Total Operations:

Treatment System $ 1,844,323 $ 621,984 $ 5,181,896 $ 2,059,340 $ 1,124,510 $ 10,832,053 Conveyance System 140,520 45,549 147,116 - 96,939 430,124 General & Administration 305,392 87,421 699,372 314,717 224,965 1,631,867 Total Operating Contributions $ 2,290,235 $ 754,954 $ 5,881,268 $ 2,521,173 $ 1,446,414 $ 12,894,044 Debt Service:

SRF Loan $ 1,903,189 $ 70,887 $ 2,064,704 $ 408,275 $ 39,481 $ 4,486,536 Capital:

Pay-go Capital Improvement Projects $ 1,020,851 $ 292,224 $ 2,177,352 $ 1,046,699 $ 757,374 $ 5,294,500 Asset Replacement Reserve Funding 306,878 87,847 463,992 308,296 234,025 1,401,038 Total Capital Contributions $ 1,327,729 $ 380,071 $ 2,641,344 $ 1,354,995 $ 991,399 $ 6,695,538 Total Member Contributions $ 5,521,153 $ 1,205,912 $ 10,587,316 $ 4,284,443 $ 2,477,294 $ 24,076,118 Total Member Contribution YTY Change $ 569,396 $ 243,911 $ 1,738,931 $ 786,271 $ 650,933 $ 3,989,442 (1) $3.5M is carried over from FY24-25 Budget
Adopted Fiscal Year 2024-2025 Budget
WRCRWA Budget Schedule
Fiscal Year 2025-2026
Member Contribution Summary Year-to-Year Comparison
Proposed Fiscal Year 2025-2026 Budget

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Capacity Contribution Capacity Contribution Capacity Contribution Total by Agency Corona 2.62 $ 990,525 2.62 $ 65,387 2.62 $ 356,606 $ 1,412,518 HGSD 0.75 $ 283,547 0.75 $ 18,718 0.75 $ 102,082 $ 404,347 JCSD 6.00 $ 2,268,377 - $ - 6.00 $ 816,655 $ 3,085,032
Norco 2.70 $ 1,020,770 2.50 $ 62,392 2.70 $ 367,494 $ 1,450,656 WMWD 1.93 $ 729,661 2.13 $ 53,158 1.93 $ 262,690 $ 1,045,509 Total 14.00 $ 5,292,880 8.00 $ 199,655 14.00 $ 1,905,527 $ 7,398,062 Est. Flows Rate Est. Flows Rate Est. Flows Rate Total by Agency Corona 1.10 $ 677,376 1.10 $ 43,401 - $ - $ 720,777
HGSD 0.59 $ 363,320 0.59 $ 23,279 - $ - $ 386,599
JCSD 4.94 $ 3,042,033 - $ - - $ - $ 3,042,033
Norco 1.70 $ 1,046,853 1.70 $ 67,074 - $ - $ 1,113,927
WMWD 0.78 $ 480,321 0.78 $ 30,775 - $ - $ 511,096
Total 9.11 $ 5,609,903 4.17 $ 164,529 - $ - $ 5,774,432 Grand Totals $ 10,902,783 $ 364,184 $ 1,905,527 $ 13,172,494 Fixed Rate per
MGD:
$31,505 $2,080 $11,342
Variable Rate
per MGD:
$1,687 $108 $0
Treatment System Conveyance System General & Administrative WRCRWA Budget Schedule
Fiscal Year 2025-2026
Capacity, Rates, and Contributions
Fixed and Variable

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2024-2025 2025-2026
Budget Budget Amount % Change
Treatment System
Treatment Plant
Labor Costs 3,422,603 3,678,080 255,477 7.46%
Outside Services (Laboratory) 189,857 197,451 7,594 4.00% Facility Maintenance 1,557,268 1,828,065 270,797 17.39% Vehicles/Equipment Rental 171,130 183,904 12,774 7.46%
Utilities 2,462,936 2,000,000 (462,936) -18.80%
Chemicals 2,110,145 2,094,551 (15,594) -0.74%
Solids Disposal/Sludge 456,799 425,071 (31,728) -6.95%
Permits and Fees 154,302 160,474 6,172 4.00%
Facility Maintenance - Bldg & Yard 71,702 92,306 20,604 28.74% General Supplies 172,448 176,249 3,801 2.20%
Total Treatment Plant 10,769,190 10,836,151 66,961 0.62% Pre-treatment
Labor Costs 54,282 57,686 3,404 6.27%
Vehicle/Equipment Rental 2,714 2,884 170 6.26%
Laboratory - Quality Testing 4,867 5,062 195 4.01%
Supplies 1,000 1,000 - 0.00%
Total Pre-treatment 62,863 66,632 3,769 6.00%
Total Treatment System 10,832,053 10,902,783 70,730 0.65% Conveyance System
Labor Costs 211,702 145,870 (65,832) -31.10%
Facility Maintenance 79,564 82,747 3,183 4.00%
Vehicle/Equipment Rental 10,585 7,294 (3,291) -31.09%
Utilities 113,156 113,156 - 0.00%
Facility Maintenance - Bldg & Yard 5,117 5,117 - 0.00%
Supplies 10,000 10,000 - 0.00%
Total Conveyance System 430,124 364,184 (65,940) -15.33% General and Administration
Labor 531,578 640,423 108,845 20.48%
Outside Services (Consulting) 531,123 568,736 37,613 7.08% Insurance Expense 389,000 512,935 123,935 31.86%
Audit Expense 21,500 21,500 - 0.00%
Mercury Monitoring - SARDA 8,653 9,000 347 4.01%
Basin Monitoring Program 30,234 30,234 - 0.00%
Vehicle/Equipment Rental 26,579 32,021 5,442 20.47%
Bank Charges 5,540 5,540 - 0.00%
Permits and Fees 18,500 18,500 - 0.00%
General Supplies 11,960 12,438 478 4.00%
Legal Costs - General 57,200 54,200 (3,000) -5.24%
Total General and Administration 1,631,867 1,905,527 273,660 16.77% Total Operating Expenses 12,894,044 13,172,494 278,450 2.16% WRCRWA Budget Schedule
Fiscal Year 2025-2026
Year-to-Year Comparison
Change

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Beginning Outstanding
SRF Loan Due Date
Member
Agency
Allocation
Percentage
Balance
7-01-2025 Interest Principal Payment
Balance
6-30-2026
Plant Expansion 12/31/2025 Corona 42.420% $ 21,741,141 $ 413,082 $ 1,490,107 $ 1,903,189 $ 20,251,034 HGSD 1.580% 809,784 15,386 55,501 70,887 754,283
JCSD 46.020% 23,586,216 448,138 1,616,566 2,064,704 21,969,650 Norco 9.100% 4,663,941 88,615 319,660 408,275 4,344,281 Western 0.880% 451,018 8,569 30,912 39,481 420,106
100.000% $ 51,252,100 $ 973,790 $ 3,512,746 $ 4,486,536 $ 47,739,354 SRF Loan maturity date: 12/31/2036
WRCRWA Budget Schedule
Fiscal Year 2025-2026
Debt Service Expenditures
Debt Service

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Description
Pay-go Capital Improvement Projects Total Corona HGSD JCSD Norco Western Treatment System
Solar Dryer Discharge Conveyor 1,292,000 241,785 69,212 553,713 249,175 178,115 Blower Building Air Intake/Ventilation Modifications 371,000 69,429 19,874 159,000 71,551 51,146 Blower Replacement 1,200,000 224,568 64,284 514,284 231,432 165,432 Medium Voltage Switchgear 180,000 33,685 9,643 77,142 34,715 24,815 Dewatering Replacement 3,328,000 622,802 178,281 1,426,281 641,838 458,798 Generator Replacement 1,370,000 256,382 73,391 587,141 264,218 188,868 Primary Clarifier No. 2 Rehabilitation 500,000 93,570 26,785 214,285 96,430 68,930 InforFSM Implementation - WRCRWA's cost participation 245,550 45,952 13,154 105,235 47,357 33,852 Total Treatment System 8,486,550 1,588,173 454,624 3,637,081 1,636,716 1,169,956 Conveyance System
South Regional Pump Station (SRPS) Emergency Pump 214,000 70,085 20,063 - 66,875 56,977 WRCRWA Conveyance System Condition Assessment 200,000 65,500 18,750 - 62,500 53,250 Total Conveyance System 414,000 135,585 38,813 - 129,375 110,227 Total Pay-go Capital Improvement Project Contribution 8,900,550 1,723,758 493,437 3,637,081 1,766,091 1,280,183 Asset Replacement Reserve Funding Total Corona HGSD JCSD Norco WMWD Treatment System 1,160,597 217,194 62,173 497,397 223,833 160,000 Conveyance System 345,383 113,113 32,380 - 107,932 91,958 Total Asset Replacement Reserve Contribution 1,505,980 330,307 94,553 497,397 331,765 251,958 Total Capital Contributions $ 10,406,530 $ 2,054,065 $ 587,990 $ 4,134,478 $ 2,097,856 $ 1,532,141 WRCRWA Budget Schedule
Fiscal Year 2025-2026
Capital Budget
Agency Amounts to be Contributed

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WRCRWA Pay-go Capital Improvement Projects Fiscal Year 2025-2026 Introduction
The WRCRWA Administrator is recommending approval and implementation of the following pay-go capital improvement projects for Fiscal Year 2025-2026.

1. Solar Dryer Discharge Conveyor

2. Blower Building Air Intake/Ventilation Modifications

3. Blower Replacement

4. Medium Voltage Switchgear

5. Dewatering Replacement

6. Generator Replacement

7. Primary Clarifier No. 2 Rehabilitation

8. InforFSM Implementation – WRCRWA’s Cost Participation

9. SRPS Emergency Pump

10. WRCRWA Conveyance System Condition Assessment
The capital projects are critical to the successful operation of the WRCRWA Wastewater Treatment Plant. The projects are described on the following pages.

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WRCRWA Pay-go Capital Improvement Projects
Fiscal Year 2025-2026 Budget
Capital Project No. 1: Solar Dryer Discharge Conveyor
Allocation Treatment
Estimated Total Cost: $1,792,000
Budget Carryover from Fiscal Year 2024-2025 $1,292,000
Additional Budget Need in Fiscal Year 2025-2026 $0
Summary
The Solar Dryer Conveyor project consists of the replacement of four conveyors at the “dry end” of the Solar Dryer and modifying the discharge chute. These conveyors transfer the processed sludge from the solar drier into the sludge loadout building where they are discharged into semitrailers for offsite disposal.

Justification
This system is a single point of potential failure and needs to be fortified. During times of wetter solids, the current system conveys the wet solids to the end without much drying.

Background
The project consists of replacement of four conveyors at the “dry end” of the Solar Dryer. The conveyors on the “dry end” of the dryer that feed the truck loadout facility were sized for dryer solids. The solar dryer feed conveyors have sufficient capacity (provided the sludge is fairly dry, >50%). However, if dewatering equipment produces wetter solids, if a solar dryer bay is offline, or in periods of colder weather, wet solids could be conveyed from the wet end to the dry end without much drying occurring. Due to this potential, these conveyors should be replaced to allow for similar capacities as the “wet” feed conveyors. Also, the discharge chute at the end of the solar dryer needs to be modified to prevent solids bridging at times of the year.

It is recommended that with the replacement of the conveyance system, the chute should be modified to be wider and reduce the potential for “bridging” of solids above the conveyor.

Additionally, it is recommended to have spare motors and parts to keep this system running.

Schedule
Projected completion date for this project is by the end of Fiscal Year 2025-2026. Design contract has been awarded, and design is currently at the 90% phase. Completion of design is anticipated soon and will then be posted on Planet Bids for solicitation of bids for construction.

Once bids are received, we will be back before the Board for contract award.

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WRCRWA Pay-go Capital Improvement Projects
Fiscal Year 2025-2026 Budget
Capital Project No. 2: Blower Building Air Intake/Ventilation Modifications Allocation: Treatment
Estimated Total Cost: $371,000
Budget Carryover from Fiscal Year 2024-2025 $371,000
Additional Budget Need in Fiscal Year 2025-2026 $0
Summary
Improve air exchanges in the blower building for blower operations.

Justification
The current blower building has limited ventilation filtration and no temperature controls.

During summer months blowers fail due to increase heat. To mitigate the heat, doors and windows are opened (to reduce heat), but dust is then introduced resulting in bearing failures.

Both heat and dust are to be addressed through this project.

Background
The blower building currently has no forced ventilation. As such, air is pulled into the room via the suction of the blowers that are in operation. The blower room has louvers with filters, but during warmer temperature periods, the room gets too hot for blower operation. To resolve this issue, the garage door is opened to cool the room. Opening this door, however, causes dust to enter the room which is causing operation issues with the blowers. It is recommended that a climate control system be installed to keep temperatures and dust in an acceptable range for blower operation.

This can be accomplished with a twofold approach as follows:

1. A combined intake plenum system should be incorporated to provide direct air feed to each of the blowers. This will be done by adding a plenum intake structure to the north of the building, including inlet filters. All blower intake air will pass through this structure and then ducting will be provided into the room to direct pre-filtered air to each of the blowers.

2. With the intake blower air separated from the room ventilation, either a cooling system using air conditioning or evaporative cooling can be used for the air in the room.

Thus, the blowers will have sufficient filtered air flow to each unit and the room will be cooled sufficiently to keep the electronics and motors cool enough to allow for normal and consistent operations.

Schedule
This project is planned to kick off in May 2025. It will run in concert with the Blower Replacement project as they are interconnected.

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WRCRWA Pay-go Capital Improvement Projects
Fiscal Year 2025-2026 Budget
Capital Project No. 3: Blower Replacement
Allocation: Treatment
Estimated Total Cost: $1,500,000
Budget Carryover from Fiscal Year 2024-2025 $1,200,000
Additional Budget Need in Fiscal Year 2025-2026 $0
Summary
Replace three turbo blowers associated with the activated sludge process.

Justification
Over the past few years, WRCRWA has experienced failures of the existing HIS Turbo Blowers.

During the most recent failure we were made aware that HSI equipment is no longer supported, and replacement parts are non-existent.

Background
WRCRWA is currently equipped with five turbo blowers that support the aerobic biological process. These five blowers vary in age and manufacturer. In 2012 (or so), WRCRWA supplemented its aeration capacity within the oxidation ditch by adding diffuser grids and three turbo blowers. Those original three turbo blowers were manufactured by Houston Service Industries (HSI). HSI was subsequently purchased by Atlas Copco. During the 2017 plant expansion and addition of another biological reactor, two more turbo blowers were installed.

These two “newer” turbo blowers were manufactured by APG-Neuros.

Over the past few years, WRCRWA has experienced failures of the HSI blowers (typically related to the air bearings and dust). In 2023, HSI blower #2 experienced an electrical component failure and subsequent mechanical failure. Through this failure and attempted repair, Atlas Copco has notified WRCRWA that the HSI product line is no longer supported and that replacement parts are non-existent. Atlas Copco manufactures a similar product and as they replace existing HSI blowers, those used units and being scavenged for parts to make repairs on other HSI blowers.

WRCRWA is now faced with needing to replace the three HSI blowers (before failure) to ensure availability of adequate air in support of the biological processes. It is in WRCRWA’s best interest to investigate all blower technologies to ensure integration with the remaining two APG-Neuros blowers along with efficiency and ultimate biological air demands.

Schedule
This project has kicked off and design proposals have been received from two firms. Staff are currently evaluating the proposals and will be seeking contract award shortly. This project may span two fiscal years depending on equipment considerations and the availability of replacement equipment.

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WRCRWA Pay-go Capital Improvement Projects
Fiscal Year 2025-2026 Budget
Capital Project No. 4: Medium Voltage Switchgear
Allocation: Treatment
Estimated Total Cost: $3,138,000
Budget Carryover from Fiscal Year 2024-2025 $180,000
Additional Budget Need in Fiscal Year 2025-2026 $0
Summary
Replace the medium voltage switchgear and place it in the existing electrical building.

Justification
The existing outdoor medium voltage switchgear is 26 years old and is becoming obsolete. It is due for replacement and should be relocated inside the newly built Electrical Building to provide a better environment conducive to such equipment.

Background
Due to the age of the gear and it being installed outdoors, it is recommended that this equipment be replaced to ensure it can be maintained and operated properly in the foreseeable future. A new electrical building has been constructed and the low voltage switchgear was moved into this building. There is room for a new medium voltage switchgear to be installed in this building also.

Depending on the outcome of the blower investigation, dewatering replacement study and low voltage load study, the medium voltage system might be impacted. The request would be for $190,000 during Fiscal Year 2024-2025 with replacement being in Fiscal Year 2026-2027. Design is anticipated to be complete during Fiscal Year 2025-2026.

Schedule
This project is planned to kick off in July 2025.

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WRCRWA Pay-go Capital Improvement Projects
Fiscal Year 2025-2026 Budget
Capital Project No. 5: Dewatering Equipment Replacement Allocation: Treatment
Estimated Total Cost: $4,378,000
Budget Carryover from Fiscal Year 2024-2025 $265,500
Additional Budget Need in Fiscal Year 2025-2026 $3,062,500 Summary
Replace the three existing Andritz centrifuges.

Justification
Dewatering sludge is a critical component of biosolids management. Over the past few years, the Centrifuges at WRCRWA have experienced numerous failures resulting in decreased operating cycles. Limited dewatering capacity jeopardizes the treatment plant’s ability to maintain regulatory compliance.

Background
During the later stages of the plant expansion design, it was surfaced that the original centrifuges were outdated and no longer serviceable. The design team sought replacement equipment that would meet the needs of the facility while also fitting within the existing footprint of the original equipment. Andritz centrifuges were selected and installed during the plant expansion.

While the existing Andritz centrifuges have met the needs of the facility, they are being pushed to their limits. The centrifuges are being ran at the far end of their speed rating to achieve decent % solids concentration while maintaining desirable centrate quality. The units are being stressed resulting in reduced component life and increasingly sever failures.

With the units suffering a higher rate of mechanical breakdown, very rarely do we have three units available. This has resulted in increased run times for the other two units available. An investigation of best available technologies and based on current WRCRWA sludge conditions, staff recommend replacing the existing centrifuges to gain greater operational redundancy and productivity.

During Fiscal Year 2025-2026, the ask is for $3,062,500.

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WRCRWA Pay-go Capital Improvement Projects
Fiscal Year 2025-2026 Budget
Capital Project No. 6: Emergency Generator Replacement
Allocation: Treatment
Estimated Total Cost: $2,740,000
Budget Carryover from Fiscal Year 2024-2025 $0
New Budget Need in Fiscal Year 2025-2026 $1,370,000
Summary
Replace the existing treatment plant emergency generator.

Justification
Generator age as well as various component failures over the 26-year period help drive the need for asset replacement consideration.

Background
WRCRWA is equipped with an emergency stand-by generator to provide power to the plant processes should the need arise. The existing Caterpillar brand stand-by plant generator houses a TIER 2 engine that is 26 years old. PSP, weather, accidental and routine power outages have been a recurring theme at the WRCRWA plant. This uncertainty coupled with asset depreciation accompanies a level of risk for our stand-by power reliance. Generator age as well as various component failures over the 26-year period help drive the need for asset replacement consideration. From a risk and resilience perspective, this unit presents a higher potential for failure. Additionally, the emissions rating is very low when compared to the SCAQMD best available technology today (TIER 4F engines).

During Fiscal Year 2025-2026, the ask is for $1,370,000.

Schedule
This project is planned to kick off in July 2025. In recent discussions with Caterpillar, replacement generators have a lead-time greater than 52 weeks. Our intention is to perform a load study to understand potential future energy demands (associated with dewatering equipment and upsizing of blowers) then solicit proposals for the generator replacement. This project will span two fiscal years based on equipment availability.

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WRCRWA Pay-go Capital Improvement Projects
Fiscal Year 2025-2026 Budget
Capital Project No. 7: Primary Clarifier No. 2 Rehabilitation Allocation: Treatment
Estimated Total Cost: $500,000
Budget Carryover from Fiscal Year 2024-2025 $0
New Budget Need in Fiscal Year 2025-2026 $500,000
Summary
Rehabilitate Primary Clarifier No. 2
Justification
Primary clarifier removes the lighter materials that float to the top such as fats, oil and grease (FOG) as well as heavier materials that sink to the bottom (sludge). FOG and the sludge collected from the primary clarifier are conveyed to the anaerobic digesters for additional stabilization. A primary clarifier is considered the most energy efficient way to remove the biochemical oxygen demand of the wastewater, lessening the energy load on downstream processes such as bioreactors and blower systems. Maintaining the primary clarifiers in well-functioning order would reduce the overall energy footprint of the plant as well as increase the likelihood of maintaining NPDES and AQMD permit compliance.

Background
Primary Clarifier No. 2 is one of two 95-feet diameter primary clarifiers that were constructed in 2017 and has been in service for 8 years. During a routine preventative maintenance inspection after cleaning, the staff discovered a substantial level of corrosion on the sludge collection arms, scum baffle and center supporting ring. A consultant was hired to document the existing condition and to validate staff observations. Staff, along with the consultant, recommend rehabilitating Primary Clarifier No. 2 which consists of repairing/replacing corroded structural members of the sludge collection system, center ring, and scum baffle along with sandblasting and recoating all steel elements.

During the Fiscal Year 2025-2026, the ask is for $500,000.

Schedule
The project is planned to kick off in July 2025.

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WRCRWA Pay-go Capital Improvement Projects
Fiscal Year 2025-2026 Budget
Capital Project No. 8: InforFSM Implementation – WRCRWA’s Cost Participation Allocation: Treatment
Estimated Total Cost: $245,550
Budget Carryover from Fiscal Year 2024-2025 $0
New Budget Need in Fiscal Year 2025-2026 $245,550
Summary
WRCRWA’s allocated share of costs related to the implementation of the financial software Infor Cloud Suite Financials (InforFSM).

Justification
In Fiscal Year 2024, Western Municipal Water District (WMWD), WRCRWA’s administrator, successfully implemented the new financial software, InforFSM, in anticipation of the discontinuation of support for the existing Lawson Version 10 system by its developer in early 2026. Since WRCRWA also uses the same financial software, it is necessary for WRCRWA to share in the implementation cost alongside WMWD.

Background
In June 2019, Western Municipal Water District (WMWD) began the search for a replacement for its financial software due to the upcoming discontinuation of support for Lawson Version 10 after April 2026, along with the cessation of support from Microsoft Server in October 2023. In August 2022, WMWD selected Infor CloudSuite Financials, a subscription-based, multi-tenant software platform, as the new system. The implementation of InforFSM commenced in late 2022 and successfully went live on April 29, 2024.

Since WRCRWA also uses the same financial software platform, it is necessary for WRCRWA to participate in the implementation costs alongside WMWD. The total cost of the InforFSM project implementation is $3,277,045, with WRCRWA’s share amounting to $245,550, or 7.49%, based on the ratio of WRCRWA’s Fiscal Year 2023–2024 operating expense budget compared to that of WMWD.

Schedule
The project has been completed. WMWD is seeking reimbursement from WRCRWA in Fiscal Year 2025-2026.

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WRCRWA Pay-go Capital Improvement Projects
Fiscal Year 2025-2026 Budget
Capital Project No. 9: South Regional Pump Station (SRPS) Emergency Pump Allocation: Conveyance
Estimated Total Cost: $1,000,000
Budget Carryover from Fiscal Year 2024-2025 $214,000
Additional Budget Need in Fiscal Year 2025-2026 $0
Summary
Design, purchase, and installation of a standalone diesel bypass pump at the SRPS.

Justification
Currently there is no back up power at the SRPS. By design, in the event of a power outage, the wet well fills and if power is not restored quickly, raw sewage overflows into the Inland Empire Brine Line (Brine Line). Numerous improvements and upgrades have been implemented at the SRPS and WRCRWA Treatment Plant since 2016 to increase the overall system redundancy and reliability. The goal of the improvements/upgrades are to prevent future sewage overflow into the Brine Line located adjacent to the SRPS.

Initially, installation of a standalone diesel bypass pump was considered as it would provide additional redundancy and reliability to the sewage collection system. The pump would allow WRCRWA to maintain independent hydraulic control in the event of mechanical and/or electrical equipment failures at SRPS allowing the SRPS to continue to pump flows to the WRCRWA Treatment Plant rather than discharging them to the Brine Line. However, due to design parameters and FEMA special requirements, the available bypass pump was found to be inadequate, leading to the selection of a permanent generator as the most cost-effective alternative solution.

Background
The SRPS serves the City of Riverside, Home Gardens, City of Norco, and City of Corona by pumping wastewater from these cities just over three miles to the WRCRWA Treatment Plant.

Average daily pumping flow is 3 MGD.

Orange County Sanitation recently objected to un-planned and unnoticed sewage flows in the Brine Line and added a requirement to the Santa Ana Watershed Project Authority’s (SAWPA) discharge permit that required development of a plan to incorporate robust redundancies to prevent discharges to the Brine Line.

The WRCRWA Treatment Plant was designed to rely on the Brine Line and ultimately Orange County Sanitation District as a back-up if there were problems that WRCRWA’s system could not handle. This option provides for redundancy against failure due to electrical issues.

However, after exhaustive analyses, the preliminary design revealed that the previously selected emergency bypass diesel engine pump did not meet the project’s design parameters. As a

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WRCRWA Pay-go Capital Improvement Projects
Fiscal Year 2025-2026 Budget
result, a permanent generator has been chosen as the most feasible and cost-effective alternative.

Schedule
A grant was awarded on February 3, 2023, from the Hazard Mitigation Grant Program in the amount of up to $938,349 which was initially estimated to cover up to 75 percent of the design, purchase, and installation costs for an emergency bypass diesel engine pump.

A grant application for additional funds to support the emergency generator is in progress.

Additionally, staff are in the process of securing an extension and seeking additional grant funding to address the increasing cost of construction, equipment and material.

The expected completion date for the project was originally in Fall of 2025. However, due to the change of the scope of work, the expected completion date is currently unknown.

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WRCRWA Pay-go Capital Improvement Projects
Fiscal Year 2025-2026 Budget
Capital Project No. 10: WRCRWA Conveyance System Condition Assessment Allocation: Conveyance
Estimated Total Cost: $200,000
Budget Carryover from Fiscal Year 2024-2025 $0
New Budget Need in Fiscal Year 2025-2026 $200,000
Summary
Western Riverside County Regional Wastewater Authority (WRCRWA), under the administrative authority of Western Municipal Water District (WMWD), is requesting a field condition assessment of the WRCRWA wastewater treatment sewer conveyance system pipeline segments and manholes from the Arizona flume to the South Regional Pump Station notwithstanding any related siphons or force mains.

Justification
To protect system operations, maintain regulatory compliance related to the Sewer System Management Plan, and to ensure that WRCRWA is capable of forecasting asset failures as well as establishing appropriate asset replacement reserves, WRCRWA will evaluate, and as well as grade, based on field evaluation, the existing asset condition for 6.8 miles of shared sewage trunk line segments and manholes.

Background
As part of the linear asset management program, condition assessments are required to meet compliance requirements, understand current needs and prepare for future costs. This conveyance system has never had formal condition assessment. This bassline information will provide member agencies with a clear understanding of the maintenance system.

Schedule
This project is scheduled for public bidding in June with work to commence in July of 2025.

Anticipated completion is 6 months contingent on associated bids.

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WRCRWA
Asset Replacement Funding Need Analysis for FY 2025-2026 Budget Conveyance System
2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2031 2031-2032 2032-2033 2033-2034 2034-2035 10 Yr Total Reserve Bal as of 7/1/24 1,203,501 524,077 413,681 573,419 356,356 515,965 666,523 989,868 1,258,223 1,117,198 1,442,764 Funding Need 318,384 345,383 345,383 345,383 345,383 345,383 345,383 345,383 345,383 345,383 345,383 3,453,830 Spending (997,808) (455,779) (185,645) (562,446) (185,774) (194,825) (22,038) (77,028) (486,408) (19,817) (788,067) (2,977,827) Projected Reserve $ 524,077 $ 413,681 $ 573,419 $ 356,356 $ 515,965 $ 666,523 $ 989,868 $ 1,258,223 $ 1,117,198 $ 1,442,764 $ 1,000,080 Treatment System
2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2031 2031-2032 2032-2033 2033-2034 2034-2035 10 Yr Total Reserve Bal as of 7/1/24 2,990,511 3,604,683 4,071,128 4,042,142 4,156,195 4,867,095 4,716,959 4,657,146 225,538 1,205,766 2,287,284 Funding Need 1,082,654 1,160,597 1,160,597 1,160,597 1,160,597 1,160,597 1,160,597 1,160,597 1,160,597 1,160,597 1,160,597 11,605,970 Spending (468,482) (694,152) (1,189,583) (1,046,544) (449,697) (1,310,733) (1,220,410) (5,592,205) (180,369) (79,079) (1,947,199) (13,709,971) Projected Reserve $ 3,604,683 $ 4,071,128 $ 4,042,142 $ 4,156,195 $ 4,867,095 $ 4,716,959 $ 4,657,146 $ 225,538 $ 1,205,766 $ 2,287,284 $ 1,500,682 Projected Cash Availability $ 4,128,760 $ 4,484,809 $ 4,615,561 $ 4,512,551 $ 5,383,060 $ 5,383,482 $ 5,647,014 $ 1,483,761 $ 2,322,964 $ 3,730,048 $ 2,500,762 \\Wmwd-fsmain\WRCRWA\Capital\Budget\FY26 Capital Project Budget Projection with Asset Replacement Page 150 of 1303

WRCRWA ASSET REPLACEMENT SCHEDULE
Conveyance System

ASSET ID DESCRIPTION ASSET CLASS INSTALLED DATE

ESTIMATED

REPLACEMENT YEAR

ESTIMATED ASSET

REPLACEMENT COST
SLS9000000006 Rolling Entry Gates MISC. ASSETS 1995 2026 $ 103,970.92 SLS9000000010 Piping Pit / Electrical Conduit MISC. ASSETS 1996 2026 77,243.79 xxx9000000021 Wet Well Exhaust Fan FAN 1995 2026 6,044.71 xxx9000000028 Interior Lighting MISC. ASSETS 1996 2026 38,416.53 xxx9000000030 Exterior Lighting MISC. ASSETS 1996 2026 68,037.01 xxx9000000034 Corrosion Control Chemical Tank FLUID STORAGE UNIT 1996 2026 162,066.49 SLS9000000007 Fencing MISC. ASSETS 1995 2027 101,292.06 SLS9000000013 Wet Well Equalization Slide Gate MISC. ASSETS 1995 2027 79,827.09 xxx9000000031 Eye Wash and Shower Station MISC. ASSETS 2019 2027 4,525.55 SLS9000000003 North Wet Well Slide Gate MISC. ASSETS 1995 2028 92,767.05 SLS9000000005 South Wet Well Slide Gate MISC. ASSETS 1995 2028 92,767.05 SLS9000000014 Pavement MISC. ASSETS 1995 2028 174,465.21 SVALVE0000000196 12" Isolation Valve - P1 SEWER VALVE 1995 2028 33,866.29 SVALVE0000000197 12" Isolation Valve - P2 SEWER VALVE 1995 2028 33,866.29 SVALVE0000000198 12" Isolation Valve - P3 SEWER VALVE 1995 2028 33,866.29 SVALVE0000000199 12" Isolation Valve - P4 SEWER VALVE 1995 2028 33,866.29 xxx9000000035 Bridge Crane Electrical & Mechanical CRANE 2018 2028 66,981.93 SHMOTOR0000000220 Submersible P3 (Motor) MOTOR 2019 2029 46,443.46 SHMOTOR0000000221 Submersible P4 (Motor) MOTOR 2019 2029 46,443.46 SPUMP0000000223 Submersible P3 (Pump) SEWER PUMP 2019 2029 46,443.46 SPUMP0000000224 Submersible P4 (Pump) SEWER PUMP 2019 2029 46,443.46 SHMOTOR0000000218 Submersible P1 (Motor) MOTOR 2020 2030 46,661.82 SHMOTOR0000000219 Submersible P2 (Motor) MOTOR 2020 2030 46,661.82 SPUMP0000000221 Submersible P1 (Pump) SEWER PUMP 2020 2030 46,661.82 SPUMP0000000222 Submersible P2 (Pump) SEWER PUMP 2020 2030 46,661.82 xxx9000000037 North Wet Well Monitoring System INSTRUMENT 2020 2030 8,177.25 FACHVAC0000000072 HVAC System HVAC 2016 2031 22,038.46
xxx9000000032 Distribution Panel SGMCC 1995 2032 49,655.14 xxx9000000033 Distribution Panel LP1 SGMCC 1995 2032 18,965.89 xxx9000000038 South Wet Well Monitoring System INSTRUMENT 2022 2032 8,406.63 \\Wmwd-fsmain\WRCRWA\Budget\BUDGET 2025-2026\Budget Binder\Asset Replacement Page 1 Page 151 of 1303

WRCRWA ASSET REPLACEMENT SCHEDULE
Conveyance System

ASSET ID DESCRIPTION ASSET CLASS INSTALLED DATE

ESTIMATED

REPLACEMENT YEAR

ESTIMATED ASSET

REPLACEMENT COST
SLS50000 Wet Well Recoating STRUCTURE 1998 2033 486,408.37 SHCRANE0000000006 Bridge Crane CRANE 2023 2034 19,817.38 xxx9000000036 Motor Control Center (MCC) SGMCC 1995 2035 652,373.59 xxx9000000039 Transformer CONTROL PANEL 1995 2035 135,693.27 $ 2,977,827.62
\\Wmwd-fsmain\WRCRWA\Budget\BUDGET 2025-2026\Budget Binder\Asset Replacement Page 2 Page 152 of 1303

WRCRWA ASSET REPLACEMENT SCHEDULE
Treatment System

ASSET ID DESCRIPTION ASSET CLASS

ESTIMATED

REPLACEMENT YEAR REPLACEMENT COST
SHFAN0000000071 Odor Control System Scrubber 4 Exhaust Fan ODOR REDUCTION UNIT 2026 14,256.37 $ SHFAN0000000072 Odor Control System Scrubber 5 Exhaust Fan ODOR REDUCTION UNIT 2026 14,256.37 SHFAN0000000073 Odor Control System Scrubber 6 Exhaust Fan ODOR REDUCTION UNIT 2026 14,256.37 SHGEARDRV0000000017 Sludge Screw Conveyor Gear Box 5 GEAR DRIVE UNIT 2026 65,454.81 SHGEARDRV0000000018 Sludge Screw Conveyor Gear Box 6 GEAR DRIVE UNIT 2026 65,454.81 SPUMP0000000013 Submersible Storm Drain P2 SEWER PUMP 2026 33,408.96 SPUMP0000000025 Progressive Cavity Drum Thickener Sludge MISC. ASSETS 2026 31,383.53 SPUMP0000000143 Submersible Scum P2 SEWER PUMP 2026 20,920.09 SPUMP0000000144 Submersible Chopper Centrate P1 SEWER PUMP 2026 31,907.51 SPUMP0000000145 Submersible Chopper Centrate P2 SEWER PUMP 2026 31,907.51 SPUMP0000000183 Progressive Cavity Flash Mix Polymer Chem Feed P2 CHEMICAL FEED 2026 34,472.57 SPUMP0000000188 Submersible Drain Pump Station P1 SEWER PUMP 2026 46,373.28 SPUMP0000000189 Submersible Drain Pump Station P2 SEWER PUMP 2026 46,373.28 SPUMP0000000190 Submersible Drain Pump Station P3 SEWER PUMP 2026 46,373.28 SPUMP0000000191 Thickener Poly Chem Feed CHEMICAL FEED 2026 31,383.53 SPUMP0000000192 Progressive Cavity Poly Recirc P1 CHEMICAL FEED 2026 31,383.53 SPUMP0000000193 Progressive Cavity Chem Feed Poly Recirc P2 CHEMICAL FEED 2026 31,383.53 WPUMP0000000118 Peristaltic P1 SEWER PUMP 2026 33,408.96 WPUMP0000000119 Peristaltic P2 SEWER PUMP 2026 34,896.94 WPUMP0000000120 Peristaltic P3 SEWER PUMP 2026 34,896.94 SGRINDER0000000010 Grinder - No. 2 West Muffin Monster GRINDER 2027 19,035.61 SHBLWR0000000001 Blower Turbine No. 1 BLOWER 2027 257,553.18 SHBLWR0000000002 Blower Turbine No. 2 BLOWER 2027 257,553.18 SHGEARDRV0000000019 Sludge Screw Conveyor Gear Box 7 GEAR DRIVE UNIT 2027 67,635.77 SHGEARDRV0000000020 Sludge Screw Conveyor Gear Box 8 GEAR DRIVE UNIT 2027 67,635.77 SHGEARDRV0000000021 Sludge Screw Conveyor Gear Box 9 GEAR DRIVE UNIT 2027 67,635.77 SHINSTRUM0000000003 Conductivity Analyzer INSTRUMENT 2027 15,843.51 SHINSTRUM0000000013 ProSonic Meter Digester No. 1 (solids) DIGESTER GAS SYSTEM 2027 27,015.85 SHINSTRUM0000000014 ProSonic Meter Digester No. 2 (solids) DIGESTER GAS SYSTEM 2027 27,015.85 SHINSTRUM0000000021 Conductivity Analyzer INSTRUMENT 2027 33,458.54 SHINSTRUM0000000024 pH Analyzer INSTRUMENT 2027 33,458.54 SHINSTRUM0000000114 Influent pH & Conductivity Meter METER 2027 33,458.54 \\Wmwd-fsmain\WRCRWA\Budget\BUDGET 2025-2026\Budget Binder\Asset Replacement Page 1 Page 153 of 1303

WRCRWA ASSET REPLACEMENT SCHEDULE
Treatment System

ASSET ID DESCRIPTION ASSET CLASS

ESTIMATED

REPLACEMENT YEAR REPLACEMENT COST
SHINSTRUM0000000115 Bench Service in Lab Meter Testing Equip INSTRUMENT 2027 31,920.98 SHINSTRUM0000000116 Bench Service in Lab Meter Testing Equip INSTRUMENT 2027 31,920.98 SMIXER0000000001 Anoxic East Mixer No. 1 (Wall Mount) MIXER 2027 16,003.33 SMIXER0000000002 Anoxic West Mixer No. 2 (Wall Mount) MIXER 2027 16,003.33 SPUMP0000000004 Submersible Scum P2 SEWER PUMP 2027 17,498.05 SPUMP0000000142 Submersible Scum P1 SEWER PUMP 2027 20,969.67 SPUMP0000000202 Centri Chlorine Contact Basin Ch. 4 Influent Sample INSTRUMENT 2027 22,642.53 SPUMP0000000204 Centri Chlorine Contact Basin Effluent Sample INSTRUMENT 2027 20,336.19 WPUMP0000000121 Peristaltic P4 SEWER PUMP 2027 34,996.10 WPUMP0000000122 Peristaltic P5 SEWER PUMP 2027 34,996.10 WPUMP0000000123 Peristaltic P6 SEWER PUMP 2027 34,996.10 PLGRITCHMB0000000001 Grit Chamber GRIT CHAMBER 2028 337,084.09 SHGEARDRV0000000014 Sludge Screw Conveyor Gear Box 2 GEAR DRIVE UNIT 2028 67,840.69 SHMOTOR0000000002 Surface Aerator Motor MOTOR 2028 249,119.69 SPUMP0000000018 Progressive Cavity Centrifuge 1 Feed CENTRIFUGE 2028 19,138.07 SPUMP0000000096 Peristaltic Alum Chem Feed P1 CHEMICAL FEED 2028 32,715.37 SPUMP0000000097 Peristaltic Alum Chem Feed P2 CHEMICAL FEED 2028 32,715.37 SPUMP0000000168 Peristaltic Sodium Hypochlorite Chem Feed P1 CHEMICAL FEED 2028 33,509.77 SPUMP0000000169 Peristaltic Sodium Hypochlorite Chem Feed P2 CHEMICAL FEED 2028 33,509.77 SPUMP0000000170 Peristaltic Bisulfite Chem Feed P1 CHEMICAL FEED 2028 33,509.77 SPUMP0000000171 Peristaltic Bisulfite Chem Feed P2 CHEMICAL FEED 2028 33,509.77 SPUMP0000000172 Peristaltic Bisulfite Chem Feed P3 CHEMICAL FEED 2028 33,509.77 SPUMP0000000197 Centri Chlorine Contact Basin Ch. 1 Influent Sample INSTRUMENT 2028 23,396.98 SPUMP0000000198 Centri Chlorine Contact Basin Ch. 2 Effluent Sample INSTRUMENT 2028 23,396.98 SPUMP0000000199 Centri Chlorine Contact Basin Ch. 2 Influent Sample INSTRUMENT 2028 23,396.98 SPUMP0000000200 Centri Chlorine Contact Basin Ch. 3 Influent Sample INSTRUMENT 2028 23,396.98 SPUMP0000000201 Centri Chlorine Contact Basin Ch. 3 Effluent Sample INSTRUMENT 2028 23,396.98 SPUMP0000000203 Centri Chlorine Contact Basin Ch. 4 Effluent Sample INSTRUMENT 2028 23,396.98 PLCONVEYOR50000 Screw Conveyor No. 1 Cake - Liner CONVEYOR 2029 10,057.41 PLCONVEYOR50001 Screw Conveyor No. #2 Elevating - Liner CONVEYOR 2029 19,907.79 PLCONVEYOR50002 Screw Conveyor No. #3 Elevating - Liner CONVEYOR 2029 19,907.79 PLCONVEYOR50003 Screw Conveyor No. #4 North - Liner CONVEYOR 2029 19,907.79 \\Wmwd-fsmain\WRCRWA\Budget\BUDGET 2025-2026\Budget Binder\Asset Replacement Page 2 Page 154 of 1303

WRCRWA ASSET REPLACEMENT SCHEDULE
Treatment System

ASSET ID DESCRIPTION ASSET CLASS

ESTIMATED

REPLACEMENT YEAR REPLACEMENT COST
PLCONVEYOR50004 Screw Conveyor No. #5 South - Liner CONVEYOR 2029 19,907.79 SHGEARDRV0000000013 Sludge Screw Conveyor Gear Box 1 GEAR DRIVE UNIT 2029 68,052.45 SHINSTRUM0000000004 pH & T Analyzer INSTRUMENT 2029 14,410.12 SHINSTRUM0000000028 Nonpotable Water Analyzer INSTRUMENT 2029 33,562.71 SHINSTRUM0000000029 Nonpotable Water Analyzer INSTRUMENT 2029 33,562.71 SHINSTRUM0000000030 Effluent Analyzer INSTRUMENT 2029 33,562.71 SHINSTRUM0000000106 Effluent Turbidity Meter METER 2029 33,562.71 SHINSTRUM0000000107 Conductivity Meter METER 2029 33,562.71 SHINSTRUM0000000108 Effluent Turbidity Meter METER 2029 33,562.71 SHINSTRUM0000000112 Filter Turbidity Meter METER 2029 33,562.71 SPUMP0000000195 Centri Chlorine Contact Basin Influent Sample INSTRUMENT 2029 18,430.51 SPUMP0000000196 Centri Chlorine Contact Basin Ch. 1 Effluent Sample INSTRUMENT 2029 24,176.57 PLCLARIF0000000012 Primary Clarifier No. 1 - (Coating ?) CLARIFIER 2030 371,271.91 PLCLARIF0000000013 Primary Clarifier No. 2 - (Coating ?) CLARIFIER 2030 371,271.91 SHBLWR0000000003 Blower Turbine No. 3 BLOWER 2030 245,252.69 SHGEARDRV0000000015 Sludge Screw Conveyor Gear Box 3 GEAR DRIVE UNIT 2030 68,271.26 SHINSTRUM0000000109 pH & Conductivity Meter METER 2030 35,313.84 SHINSTRUM0000000110 pH & Conductivity Meter METER 2030 35,313.84 SHINSTRUM0000000111 Effluent Meter METER 2030 35,313.84 SHINSTRUM0000000113 Oxi Ditch Turbidity Meter METER 2030 33,617.41 SPUMP0000000006 RAS P2 Pump SEWER PUMP 2030 76,723.42
SPUMP0000000179 Polymer Centrifuge Feed P1 CHEMICAL FEED 2030 12,794.22 SPUMP0000000180 Polymer Centrifuge Feed P2 CHEMICAL FEED 2030 12,794.22 SPUMP0000000181 Polymer Centrifuge Feed P3 CHEMICAL FEED 2030 12,794.22 Not in Infor/ To Be Added Major HMI (Cent_Blower_Waste) CONTROL PANEL 2031 22,308.62 SHFAN0000000074 Odor Control System Foul Air Fan ODOR REDUCTION UNIT 2031 18,548.08 SHMOTOR0000000127 Centri Chlorine Contact Basin Non Potable P3 Motor MOTOR 2031 44,617.25 SHMOTOR0000000179 Standard Flash Mix Pump Motor MOTOR 2031 41,111.33 SMIXER0000000003 Submersible Anoxic Basin Bioreactor No. 1 Mixer No. 1 MIXER 2031 39,358.37 SMIXER0000000004 Submersible Anoxic Basin Bioreactor No. 1 Mixer No. 2 MIXER 2031 39,358.37 SMIXER0000000005 Submersible Anoxic Basin Bioreactor No. 1 Mixer No. 3 MIXER 2031 39,358.37 SMIXER0000000006 Submersible Aerobic Basin Bioreactor No. 1 Mixer No. 1 MIXER 2031 39,358.37 \\Wmwd-fsmain\WRCRWA\Budget\BUDGET 2025-2026\Budget Binder\Asset Replacement Page 3 Page 155 of 1303

WRCRWA ASSET REPLACEMENT SCHEDULE
Treatment System

ASSET ID DESCRIPTION ASSET CLASS

ESTIMATED

REPLACEMENT YEAR REPLACEMENT COST
SMIXER0000000007 Submersible Aerobic Basin Bioreactor No. 1 Mixer No. 2 MIXER 2031 39,358.37 SMIXER0000000008 Submersible Aerobic Basin Bioreactor No. 1 Mixer No. 3 MIXER 2031 39,358.37 SMIXER0000000009 Submersible Aerobic Basin Bioreactor No. 1 Mixer No. 4 MIXER 2031 39,358.37 SPUMP0000000140 Centri Hot Water Recirc P1 DIGESTER GAS SYSTEM 2031 22,308.62 SPUMP0000000141 Centri Hot Water Recirc P2 DIGESTER GAS SYSTEM 2031 22,308.62 SPUMP0000000146 Centri Sludge Recirc P1 SEWER PUMP 2031 12,907.27 SPUMP0000000147 Centri Sludge Recirc P2 SEWER PUMP 2031 12,907.27 SPUMP0000000155 Odor Control Scrubber Control Box Chem Feed Stage 2 Caustic Soda Pump ODOR REDUCTION UNIT 2031 22,308.62 SPUMP0000000156 Odor Control Scrubber Control Box Chem Feed Stage 3 Caustic Soda Pump ODOR REDUCTION UNIT 2031 22,308.62 SPUMP0000000159 Bio-Reactor 2 Axial Flow P1 SEWER PUMP 2031 39,358.37 SPUMP0000000160 Bio-Reactor 2 Axial Flow P2 SEWER PUMP 2031 39,358.37 SPUMP0000000161 Odor Control Scrubber Control Box Stage 1 Recirc ODOR REDUCTION UNIT 2031 22,308.62 SPUMP0000000162 Odor Control Scrubber Control Box Stage 2 Recirc P1 ODOR REDUCTION UNIT 2031 22,308.62 SPUMP0000000163 Odor Control Scrubber Control Box Stage 2 Recirc P2 ODOR REDUCTION UNIT 2031 22,308.62 SPUMP0000000164 Odor Control Scrubber Control Box Stage 2 Recirc P3 ODOR REDUCTION UNIT 2031 22,308.62 SPUMP0000000165 Odor Control Scrubber Control Box Stage 3 Recirc P1 ODOR REDUCTION UNIT 2031 22,308.62 SPUMP0000000166 Odor Control Scrubber Control Box Stage 3 Recirc P2 ODOR REDUCTION UNIT 2031 22,308.62 SPUMP0000000205 Centri Dichlorination Contact Basin Sample MOTOR 2031 41,111.33 SPUMP0000000206 Centri Chlorine Contact Basin Post Aeration Effluent Sample INSTRUMENT 2031 44,617.25 SPUMP0000000208 Centri Chlorine Contact Basin Non Potable P2 WATER PUMP 2031 94,927.65 SPUMP0000000209 Centri Chlorine Contact Basin Non Potable P3 WATER PUMP 2031 94,927.65 SPUMP0000000210 Centri Chlorine Contact Basin Non Potable P4 WATER PUMP 2031 44,617.25 SPUMP0000000211 Chlorine Contact Basin Recycled Lift Pump P1 SEWER PUMP 2031 100,230.02 SPUMP0000000212 Chlorine Contact Basin Recycled Lift Pump P2 SEWER PUMP 2031 70,267.06 COMPLX50003 Gate and Fence STRUCTURE 2032 238,656.57
Not in Infor/ To Be Added Major HMI (Cent_Blower_Waste) CONTROL PANEL 2032 630,470.71 PLAERATOR0000000004 Digester 1-1 Aerator DIGESTER 2032 66,587.28 PLAERATOR0000000005 Digester 1-2 Aerator DIGESTER 2032 66,587.28 PLAERATOR0000000006 Digester 2-3 Aerator DIGESTER 2032 66,587.28 PLAERATOR0000000007 Digester 2-4 Aerator DIGESTER 2032 66,587.28 SHFAN0000000028 Biofilter Foul Air Exhaust Fan MOTOR 2032 13,024.09 SHINSTRUM0000000005 Grit Bin Analyzer INSTRUMENT 2032 16,853.53 \\Wmwd-fsmain\WRCRWA\Budget\BUDGET 2025-2026\Budget Binder\Asset Replacement Page 4 Page 156 of 1303

WRCRWA ASSET REPLACEMENT SCHEDULE
Treatment System

ASSET ID DESCRIPTION ASSET CLASS

ESTIMATED

REPLACEMENT YEAR REPLACEMENT COST
SHINSTRUM0000000006 Screenings Bin Analyzer INSTRUMENT 2032 16,853.53 SHINSTRUM0000000007 Bar Screen Analyzer INSTRUMENT 2032 16,853.53 SHINSTRUM0000000008 Endress ProSonic Meter INSTRUMENT 2032 16,853.53 SHINSTRUM0000000009 Endress ProSonic Meter INSTRUMENT 2032 18,664.90 SHINSTRUM0000000015 TWAS Pit Level Meter INSTRUMENT 2032 18,664.90 SHINSTRUM0000000016 Endress Caustic Level Meter INSTRUMENT 2032 18,664.90 SHMOTOR0000000011 Inverter Duty Secondary WAS P1 Spare Motor MOTOR 2032 19,532.22 SHMOTOR0000000100 Biofilter Recirculation Pump Motor SEWER PUMP 2032 31,826.79 SHMOTOR0000000124 Centri Hot Water Booster Pump Motor DIGESTER GAS SYSTEM 2032 13,024.09 SHSGMCC0000000046 MCC 1M (Headworks) SGMCC 2032 630,470.71 SHSGMCC0000000049 MCC 4M (Chemical Building) SGMCC 2032 253,187.57 SHSGMCC0000000050 MCC 5M (Solids Building) SGMCC 2032 253,187.57 SHSGMCC0000000047 MCC 2M (Oxidation Ditch) SGMCC 2032 830,966.99 SHSGMCC0000000048 MCC 3M (Secondary Clarifier) SGMCC 2032 830,966.99 SHSGMCC0000000080 MCC 3MA (RAS) SGMCC 2032 830,966.99
SODORRED0000000008 Biofilter FILTER 2032 29,109.74
SPUMP0000000007 RAS P3 Pump SEWER PUMP 2032 76,953.29
SPUMP0000000120 Submersible Wet Well P1 SEWER PUMP 2032 48,818.13 SPUMP0000000150 Centrifugal Biofilter Irrigation Recirc Pump SEWER PUMP 2032 30,015.43 SPUMP0000000153 Odor Control Scrubber 3 Chem Feed Stage 2 Hydrogen PeroxideODOR REDUCTION UNIT 2032 22,425.44 SPUMP0000000154 Odor Control Scrubber 3 Chem Feed Stage 3 Hydrogen PeroxideODOR REDUCTION UNIT 2032 22,425.44 SPUMP0000000157 RAS P4 Pump SEWER PUMP 2032 18,664.90
SPUMP0000000158 RAS P5 Pump SEWER PUMP 2032 18,664.90
SPUMP0000000167 Odor Control Scrubber 4 Chem Feed Stage 1 Sulfuric Acid ODOR REDUCTION UNIT 2032 22,425.44 SPUMP0000000175 Submersible Solar Dryer Storm Drain P2 SEWER PUMP 2032 41,228.15 SPUMP0000000184 Super Disc Filter Backwash Pump 1 SEWER PUMP 2032 41,581.26 SPUMP0000000185 Super Disc Filter Backwash Pump 2 SEWER PUMP 2032 41,581.26 SPUMP0000000186 Super Disc Filter Backwash Pump 3 SEWER PUMP 2032 41,581.26 SPUMP0000000194 Centri Hot Water Booster Pump DIGESTER GAS SYSTEM 2032 13,024.09 WPUMP0000000114 Vertical Turbine Non Potable Water P1 SEWER PUMP 2032 39,416.78 WPUMP0000000115 Vertical Turbine Non Potable Water P2 SEWER PUMP 2032 39,416.78 WPUMP0000000116 Vertical Turbine Non Potable Water P3 SEWER PUMP 2032 39,416.78 \\Wmwd-fsmain\WRCRWA\Budget\BUDGET 2025-2026\Budget Binder\Asset Replacement Page 5 Page 157 of 1303

WRCRWA ASSET REPLACEMENT SCHEDULE
Treatment System

ASSET ID DESCRIPTION ASSET CLASS

ESTIMATED

REPLACEMENT YEAR REPLACEMENT COST
WPUMP0000000117 Vertical Turbine Non Potable Water P4 SEWER PUMP 2032 39,416.78 SHSTARTSEC0000000077 VFD Centrifuge 1 Feed Pump Starter Section STARTER SECTION 2033 45,092.30 SHSTARTSEC0000000078 VFD Centrifuge 2 Feed Pump Starter Section STARTER SECTION 2033 45,092.30 SHSTARTSEC0000000079 VFD Centrifuge 3 Feed Pump Starter Section STARTER SECTION 2033 45,092.30 SPUMP0000000148 Screw Equalization Basin Archimedes P1 SEWER PUMP 2033 22,546.15 SPUMP0000000149 Screw Equalization Basin Archimedes P2 SEWER PUMP 2033 22,546.15 SPUMP0000000151 Chopper Digester Mixing P1 MIXER 2034 39,539.50 SPUMP0000000152 Chopper Digester Mixing P2 MIXER 2034 39,539.50 SHMOTOR0000000014 Centrifuge 2 Motor MOTOR 2035 48,299.18 PLCENTRIF0000000004 Centrifuge 1 CENTRIFUGE 2035 474,997.73 PLCENTRIF0000000005 Centrifuge 2 CENTRIFUGE 2035 474,997.73 PLCENTRIF0000000006 Centrifuge 3 CENTRIFUGE 2035 474,997.73 SHGEARDRV0000000023 Cage Primary Clarifier No. 1 Gear Drive GEAR DRIVE UNIT 2035 114,752.37 SHGEARDRV0000000024 Cage Primary Clarifier No. 2 Gear Drive GEAR DRIVE UNIT 2035 114,752.37 SHMOTOR0000000008 RAS P1 Motor MOTOR 2035 19,719.38
SHMOTOR0000000010 RAS P3 Motor MOTOR 2035 21,717.91
SHMOTOR0000000013 Centrifuge 1 Motor MOTOR 2035 48,299.18 SHMOTOR0000000015 Centrifuge 3 Motor MOTOR 2035 48,299.18 SPUMP0000000019 Progressive Cavity Centrifuge 2 Feed CENTRIFUGE 2035 24,742.61 SPUMP0000000020 Progressive Cavity Centrifuge 3 Feed CENTRIFUGE 2035 24,742.61 SPUMP0000000217 Grit P1 Pump GRIT CHAMBER 2035 56,881.16 $ 13,709,971.63
\\Wmwd-fsmain\WRCRWA\Budget\BUDGET 2025-2026\Budget Binder\Asset Replacement Page 6 Page 158 of 1303 DATE: 06/04/2025
TO: Honorable Mayor and City Council Members
FROM: Public Works Department
2025-218

REQUEST FOR CITY COUNCIL ACTION
SUBJECT:

ADOPT THE PROPOSED SHORT-RANGE TRANSIT PLAN FOR FISCAL YEARS 2025/26 THROUGH 2027/28
EXECUTIVE SUMMARY:

This staff report asks the City Council to adopt the Short-Range Transit Plan for Fiscal Year 2026 through 2028. Each fiscal year, the Riverside County Transportation Commission requires transit operators to submit the Short-Range Transit Plan, in compliance with the Transportation Development Act, to continue eligibility as a recipient of federal and state transit funds. The Plan summarizes the City’s local transit planning and financial activities, including fund requests for operating and capital needs. Although the Plan is a three-year document, the Riverside County Transportation Commission only funds the initial year, with the remaining years provided for planning purposes.

RECOMMENDED ACTION:

That the City Council:
a. Adopt the proposed Short-Range Transit Plan for Fiscal Year 2026 through 2028. b. Direct staff to submit the Short-Range Transit Plan for Fiscal Year 2026 through 2028 to the Riverside County Transportation Commission for approval.

Page 159 of 1303 ends

c. Authorize revisions to the Fiscal Year 2026 Transit Service Fund revenue and expense budget following approval of the Fiscal Year 2026 through 2028 ShortRange Transit Plan by the Riverside County Transportation Commission. d. Authorize an appropriation of $100,000 from the Transit Service Fund 577 to the COA – Citywide Bus Stop Improvements, Capital Improvement Project No. FC2022-19 for Fiscal Year 2026.

BACKGROUND & HISTORY:

The City’s transit services, known as the City of Corona Transit Service, operates under the Dial-A-Ride (DAR) and Corona Cruiser fixed route programs. The City launched the DAR service in 1977, and the Corona Cruiser in 2001. The City contracts a private transit management company, MV Transportation, to operate both programs.

The DAR program is comprised of specialized demand response and ADA complementary paratransit service. This service provides curb-to-curb transportation to qualified individuals, seniors 60 and older, and persons with disabilities, while door-todoor service is available to those certified under the ADA. The DAR service area includes the City of Corona, satellite locations in the City of Norco, and the unincorporated Riverside County areas of Coronita, El Cerrito, and Home Gardens.

The Corona Cruiser is a network of two fixed routes, the Red Line and the Blue Line.

These routes provide access to local businesses, retail stores, parks, entertainment venues, municipal services, schools, and residential adjacent areas. They also connect with the Riverside Transit Agency regional bus routes, the Corona Transit Center, and the North Main Corona Metrolink Train Station.

The Riverside County Transportation Commission (RCTC) is the designated Regional Transportation Planning Agency with fiduciary and administrative oversight of transit operators in Riverside County. Each year, RCTC reviews and approves the Short-Range Transit Plan (SRTP) and allocates local, State, and federal funding.

The City of Corona Transit Service (CCTS) is a participating transit agency in the region and relies on RCTC to provide the majority of funds needed for day-to-day operations.

Therefore, CCTS staff is required to submit an annual update of the SRTP, which represents the City of Corona’s transportation services, and compiles operational and financial data for the upcoming fiscal year based on previous years' audited data.

ANALYSIS:

In conformance with RCTC’s guidelines, CCTS staff prepared the three-year Short-Range Transit Plan for FY 2026 through 2028. The Plan includes the following four chapters. For a complete, detailed review of all the data points summarized below, a copy of the Plan is attached to this report.

Chapter 1 – System overview and service profile:

Page 160 of 1303 ends

Corona City CouncilJune 4, 2025

Corona City Council
June 4, 2025