Corona City Council
February 4, 2026

Wednesday, February 4, 2026
Closed Session Council Board Room 4:30 PM
Open Session Council Chambers 6:00 PM
**Revised agenda on Monday, February 2, 2026 at 5:29 p.m.

Item 6.4 - Staff Report and Exhibit 1 was revised**
This meeting will be conducted in person. You can participate remotely via zoom or by telephone:

Public Zoom Link
(833) 548-0276
Webinar ID: 872 7407 2732

1. CONVENE CLOSED SESSION

1.1 CONFERENCE WITH LABOR NEGOTIATORS
PURSUANT TO GOVERNMENT CODE SECTION 54957.6
AGENCY DESIGNATED REPRESENTATIVE: JACOB ELLIS, CITY MANAGER EMPLOYEE ORGANIZATION: CORONA UTILITIES EMPLOYEE ASSOCIATION

1.2 CONFERENCE WITH REAL PROPERTY NEGOTIATORS
PURSUANT TO GOVERNMENT CODE SECTION 54956.8
PROPERTY: 117-185-030, 117-185-024
AGENCY NEGOTIATOR: JACOB ELLIS, CITY MANAGER
NEGOTIATING PARTY: UHS CORONA INC.

UNDER NEGOTIATION: PRICE AND TERMS OF PAYMENT

2. INVOCATION
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

5.1 RECOGNITION: GOOD SAMARITAN CORONA CITIZENS

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.

That the City Council approve the Consent Calendar.

6.1 MINUTES - CITY COUNCIL MEETING JANUARY 21, 2026
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 January 21, 2026

6.2 CITY COUNCIL ADOPTION OF ORDINANCE NO. 3425, SECOND READING OF AN ORDINANCE

OF THE CITY OF CORONA, CALIFORNIA
Approving an amendment to the Downtown Revitalization Specific Plan (SP98-01) to change the land use designation for two parcels located at 323 S. Belle Avenue and 322 S. Washburn Avenue from single family and gateway business, respectively, to downtown, and to establish the downtown land use designation for 0.87 acres of public right of way on Fourth and Fifth Streets (SPA2024-0003)

6.3 QUARTERLY SALES TAX REPORT – 2025, QUARTER 3 (JULY-SEPTEMBER) That the City Council receive and file the quarterly sales tax information from HdL Companies for Quarter 3 2025 (July – September).

6.4 FISCAL YEAR 2026 QUARTER 2 BUDGETARY ADJUSTMENTS
That the City Council:

Appropriate $9,742,490, increase estimated revenues by $46,668, and authorize budget transfers across multiple funds, as noted in Exhibit 1 - Appropriations, Estimated Revenues, and Transfers.
a.

Authorize one (1) additional full-time Parks Supervisor position in the Community Services Department and an appropriation and estimated revenue increase across multiple funds as noted in Exhibit 1. The total recurring costs for this position are approximately $191,227.
i.

Approve the Second Amendment to the Professional Services Agreement with RSG, Inc. to increase the total compensation to $282,765.
b.

Authorize the City Manager, or his designee, to prepare and execute a Second Amendment to the RSG, Inc. Mobilehome Rent Stabilization Ordinance. Professional Services Agreement, bringing the total maximum compensation from $269,265 to $282,765.
i.

Authorize the City Manager, or his designee, to approve non-substantive amendments, including term extensions, to the Second Amendment to the RSG, Inc. Professional Services Agreement so long as any such amendments will not cause the City to exceed the approved total maximum compensation in the Agreement. ii.
c. Approve a Change Order to Increase Dooley Enterprises, Inc., Purchase Order to $150,000.

Authorize the City Manager, or his designee, to issue a Change Order to the Dooley Enterprises, Inc. Blanket Purchase Order (B260174) in the amount of $50,000 for a i.

total purchase order of $150,000.

Authorize the City Manager, or his designee, to issue annual purchase orders in the amount of $150,000 per fiscal year for the period of July 1, 2026 through June 30, 2030.
ii.

Approve a Change Order to Increase DC Frost Associates, Inc., Purchase Order to $300,000.
d.

Authorize the City Manager, or his designee, to issue a Change Order to the DC Frost Associates, Inc. Blanket Purchase Order (B260570) in the amount of $200,000 for a total purchase order of $300,000.
i.

Authorize the City Manager, or his designee, to issue annual purchase orders in subsequent years in the amount of $300,000, as DC Frost Associates, Inc. has been identified as a sole source provider.
ii.

Approve the Fifth Amendment to Maintenance and General Services Agreement with Valverde Construction to increase the total compensation by $175,000 for total of $395,000. e.

Authorize the City Manager, or his designee, to issue a Change Order to the Valverde Construction Blanket Purchase Order (B260507) in the amount of $175,000 for a total purchase order of $395,000.
i.

Authorize the City Manager, or his designee, to issue annual purchase orders in the amount of $395,000 through the term of the agreement.
ii.

Approve the Third Amendment to the Maintenance and General Services Agreement with Augustine General Engineering, Inc. to increase the total compensation by $250,000 for total of $450,000.
f.

Authorize the City Manager, or his designee, to issue a Change Order to the Augustine General Engineering, Inc. Blanket Purchase Order (B260446) in the amount of $250,000 for a total purchase order of $450,000.
i.

Authorize the City Manager, or his designee, to issue annual purchase orders in the amount of $450,000 through the term of the agreement.
ii.

Approve the Fourth Amendment to the Maintenance and General Services Agreement with W.A. Rasic Construction Co. to increase the total compensation by $250,000 for a total of $470,000.
g.

Authorize the City Manager, or his designee, to issue a Change Order to the W.A.

Rasic Construction Co. Blanket Purchase Order (B260629) in the amount of $250,000 for a total purchase order of $470,000.
i.

Authorize the City Manager, or his designee, to issue annual purchase orders in the amount of $470,000 through the term of the agreement.
ii.

Approve the Fourth Amendment to the Maintenance and General Services Agreement with A and Y Asphalt Contractors, Inc. to increase the total compensation by $200,000 for a total of $800,000.
h.

Authorize the City Manager, or his designee, to issue a Change Order to the A and Y Asphalt Contractors, Inc. Blanket Purchase Order (B260151) in the amount of $200,000 for a total purchase order of $800,000.
i.
i. Receive and file the FY 2026, Quarter 2 City Manager Purchases Report.

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 j.

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).

Authorize the City Manager, or his designee, to prepare and process any budgetary and cash transfers relating to the issuance of Water and Wastewater Revenue Bonds previously approved at the September 17, 2025 Council Meeting.
k.

Authorize the City Manager, or his designee, to issue a purchase order in the amount of $28,160.81 to American Electric Supply for streetlight electrical equipment. l.

Authorize the City Manager, or his designee, to issue a purchase order in the amount of $28,160.81 to American Electric Supply for streetlight electrical equipment. i.

6.5 FISCAL YEAR 2026 QUARTER 2 BUDGET AND STRATEGIC PLAN PROGRESS REPORT UPDATE

6.6 CONTRACT WITH EVERON LLC FOR LIBRARY SECURITY CAMERAS UPGRADE That the City Council:

Award NIB 25-063AT to Everon LLC, for the Library Security Camera Upgrades in the amount of $148,971.26 and waive all minor irregularities in the proposal. a.

Authorize the City Manager, or his designee, to execute the construction contract with Everon LLC, in the amount of $148,971.26, including any non-substantive extensions, change orders, purchase orders, and amendments up to the amount authorized in Corona Municipal Code Section 3.08.050(H), which is equivalent to 10% or $14,897.12 b.

6.7 RESOLUTION AND MOU WITH CALIFORNIA DOJ FOR FY 25-26 TOBACCO GRANT FUNDING

AND OFFICER AUTHORIZATION
That the City Council:

Adopt Resolution No. 2026-003 accepting up to $648,500 from the State of California Department of Justice for the Tobacco Grant Program Fiscal Year 2025–2026 for a threeyear period. a.

Approve the Memorandum of Understanding with the State of California Department of Justice for the award of funding through the Tobacco Grant Program, and authorize the City Manager, or his designee, to execute the Memorandum of Understanding. b.

Authorize one Police Officer position for three years to conduct tobacco enforcement and training activities with budget supplemented by grant funding. c.

Authorize an appropriation in the amount of $213,965 to the Police Department’s operating budget and increase estimated revenue by the same amount in the U.S. Department of Justice Grant Fund 411 for Fiscal Year 2027.
d.

Authorize an appropriation in the amount of $214,628 to the Police Department’s operating budget and increase estimated revenue by the same amount in the U.S. Department of Justice Grant Fund 411 for Fiscal Year 2028.
e.

Authorize an appropriation in the amount of $219,907 to the Police Department’s operating budget and increase estimated revenue by the same amount in the U.S. Department of Justice Grant Fund 411 for Fiscal Year 2029.
f.

6.8 RESOLUTION ACKNOWLEDGING THE INSPECTION OF CERTAIN OCCUPANCIES REQUIRED TO PERFORM ANNUAL INSPECTIONS IN SUCH OCCUPANCIES PURSUANT TO SECTIONS 13146.2

AND 13146.3 OF THE CALIFORNIA HEALTH AND SAFETY CODE
That the City Council adopt Resolution No. 2026-005, acknowledging the inspection of certain occupancies required to perform annual inspections in such occupancies pursuant to sections 13146.2 and 13146.3 of the California Health and Safety Code.

6.9 RESOLUTION DECLARING CERTAIN REAL PROPERTY AT THE NORTH MALL AS EXEMPT FROM

THE SURPLUS LAND ACT REGULATIONS
That the City Council:

Adopt Resolution 2026-007 declaring that certain parcels of real property located at the North Mall (northeast corner of main and sixth streets) are no longer necessary for the city’s use and are exempt surplus land under the Surplus Land Act. a.

Authorize the City Manager, or his designee, to follow applicable procedures related to the disposition of exempt surplus properties pursuant to the Surplus Land Act. b.

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.

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.

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

10.1 ORDINANCE NO. 3426 MAKING MINOR CLARIFYIING AMENDMENTS TO THE MOBILEHOME

PARK RENT STABILIZATION PROVISIONS OF THE CORONA MUNICIPAL CODE (CMC CHAPTER 5.47)
That the City Council introduce by title only and waive full reading for consideration of Ordinance No. 3426, first reading of an ordinance making minor clarifying amendments to the Mobilehome Park Rent Stabilization provisions of the Corona Municipal Code (CMC Chapter 5.47).

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 CONDITIONAL USE PERMIT 2022-0007 TO ALLOW FOR THE ESTABLISHMENT OF A

NEW FOUNDRY USE ON PROPERTY DEVELOPED WITH AN EXISTING INDUSTRIAL OPERATION, LOCATED AT 204 N. SMITH AVENUE IN THE M-2 ZONE (APPLICANT:

AAKASH DOSHI FOR ALMEX USA, INC.)
That the City Council:

Take no action, thereby affirming the Planning and Housing Commission’s action granting CUP2022-0007, based on the findings contained in the staff report and conditions of approval.OR
a.
b. Set the item for review at a subsequent meeting.

11.3 Parks & Recreation Commission

11.4 Regional Meetings

11.4.a UPDATE FROM COUNCIL MEMBER JIM STEINER ON THE RIVERSIDE TRANSIT AGENCY (RTA) BOARD MEETING OF JANUARY 22, 2026

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
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 PROVIDING THE USE OF CITY FACILITIES TO OTHER GOVERNMENT AGENCIES FREE OF CHARGE (W. SPEAKE) FEBRUARY 18, 2026

15.2 EXPLORE THE LEGALITIES OF REQUIRING CUP’S FOR OUTPATIENT DRUG ADDICTION TREATMENT CLINICS (W. SPEAKE) MARCH 4, 2026

15.3 PROVIDE THE NUMBER OF HOUSING UNITS APPROVED BY THE CITY OF CORONA SINCE 2019 (W. SPEAKE) MARCH 4, 2026

15.4 UPDATE OF CHAPTER 5.34 PEDDLERS AND SOLICITORS (W. SPEAKE) MARCH 18, 2026

15.5 SPRING FINANCIAL WORKSHOP (STAFF) APRIL 9, 2026

16. ADJOURNMENT
The next regular meeting of the City Council is scheduled for February 18, 2026 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.

DRAFT
1 City of Corona
City Council Minutes
Wednesday, January 21, 2026, 6:00 p.m.

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

1. CONVENE CLOSED SESSION
Closed Session convened at 4:10 p.m. for the purposes listed below. Present were Mayor Casillas, Vice Mayor Speake, Council Member Daddario, Council Member Richins, and Council Member Steiner. Closed Session adjourned at 5:45 p.m.

1.1 CONFERENCE WITH LABOR NEGOTIATORS
PURSUANT TO GOVERNMENT CODE SECTION 54957.6
AGENCY DESIGNATED REPRESENTATIVE: JACOB ELLIS, CITY MANAGER EMPLOYEE ORGANIZATION: CORONA UTILITIES EMPLOYEE ASSOCIATION

1.2 PUBLIC EMPLOYEE PERFORMANCE EVALUATION
PURSUANT TO GOVERNMENT CODE SECTION 54957
TITLE: CITY MANAGER

1.3 PUBLIC EMPLOYEE PERFORMANCE EVALUATION
PURSUANT TO GOVERNMENT CODE SECTION 54957
TITLE: CITY ATTORNEY/LEGAL & RISK MANAGEMENT DIRECTOR

1.4 CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(D)(1)
NAME OF CASE: CITY OF CORONA V. ROYAL RIDGE INVESTMENT INC., ET AL.

CASE NUMBER: RIVERSIDE SUPERIOR COURT CASE NO. RIC 2003117

2. INVOCATION
None.

3. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Mayor Casillas.

4. CONVENE OPEN SESSION
Mayor Casillas called the meeting to order at 6:05 p.m.

DRAFT
2 5. PROCLAMATIONS/RECOGNITIONS/PRESENTATIONS

5.1 RECOGNITION: K9 BRUCE
K9 Bruce and Corporal Joe Kelly accepted the recognition.

5.2 PRESENTATION: CORONA BLOOD ON BOARD PROGRAM
Fire Chief Brian Young provided a presentation.

5.3 PRESENTATION: FINAL DESIGN FOR THE CITY PARK PROJECT Donna Finch, Community Service Director, and RIOS Architecture, Inc. provided a presentation. The Council had inquiries and RIOS Architecture, Inc. provided clarification.

The following residents addressed the Council to provide comments on the presentation: Joe Morgan, Adrian Aros and Don Fuller.

6. CONSENT CALENDAR
The Consent Calendar was approved with the exception of Item 6.5, which was voted on separately.

Moved by: Tom Richins
Seconded by: Jim Steiner
That the City Council approve the Consent Calendar.

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

6.1 MINUTES - CITY COUNCIL MEETING JANUARY 7, 2026
THE MEETING MINUTES WERE APPROVED.

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 NOVEMBER 2025
THIS FINANCIAL REPORT WAS RECEIVED AND FILED.

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

6.3 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 FISCAL REPORT FOR NOVEMBER 2025
THIS FINANCIAL REPORT WAS RECEIVED AND FILED.

DRAFT
3 That the City Council receive and file the monthly fiscal report for November 2025.

6.4 PROFESSIONAL SERVICES AGREEMENT WITH MICHAEL BAKER

INTERNATIONAL FOR DESIGN AND CONSTRUCTION SUPPORT SERVICES FOR THE CORONA MASTER DRAINAGE PLAN (MDP) LINE 5, ALONG

RAILROAD STREET BETWEEN SHERMAN AVENUE AND JENKS DRIVE,

CAPITAL IMPROVEMENT PROJECT
THIS ITEM WAS APPROVED.

That the City Council:
a. Award Request for Proposal No. 25-075AT to Michael Baker International, for design and construction support services for the Corona MDP Line 5, Capital Improvement Project No. ST-2025-03. b. Approve the Professional Services Agreement with Michael Baker International, for design and construction support services for the Corona MDP Line 5, Capital Improvement Project No. ST-2025-03 in the amount of $389,929, and waive any minor irregularities in the proposal. c. Authorize the City Manager, or his designee, to execute a Professional Services Agreement with Michael Baker International in the amount of $389,929, including any non-substantive extensions, change orders, purchase orders, and amendments up to 10% or $38,993.

6.5 AUTHORIZE THE REFURBISHMENT OF AN EXISTING KME FIRE ENGINE (PUMPER) FROM FIRETRUCKS UNLIMITED VIA SOURCEWELL CO-OP Fire Chief Young provided a report.

Moved by: Tony Daddario
Seconded by: Jim Steiner
That the City Council:
a. Authorize the one-time refurbishment of one (1) existing relief KME fire engine (pumper) from Firetrucks Unlimited in an amount not to exceed $703,453.
b. Authorize the City Manager, or his designee, to issue a purchase order to Firetrucks Unlimited for the refurbishment of one (1) existing relief fire engine (pumper) in an amount not to exceed $703,453, including any non-substantive extensions, change orders, purchase orders, and amendments up to the amount authorized by Corona Municipal Code

3.08.080 (J), which is equivalent to 10% or $70,345.

DRAFT
4 c. Authorize an appropriation in an amount not to exceed $773,798 from the Fleet Replacement Fund 684 to the Vehicle Procurement-Fire Operating and Maintenance Project No. 68342.

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

6.6 REQUEST TO WAIVE MASTER RECOVERY FEE FOR THE

COMMUNICATIONS SITE LICENSE AGREEMENT WITH WESTERN

MUNICIPAL WATER DISTRICT
THIS ITEM WAS APPROVED.

That the City Council approve the request to waive the Master Recovery Fee for the Communications Site License Agreement with Western Municipal Water District in the amount of $2,346 for the Grapehill communication site.

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

6.7 RESOLUTION DECLARING THE CITY’S INTENTION TO ANNEX TERRITORY TO COMMUNITY FACILITIES DISTRICT NO. 2016-3 (MAINTENANCE

SERVICES) AND ADOPTING A MAP OF THE AREA PROPOSED TO BE ANNEXED THERETO (ANNEXATION NO. 45)
THIS RESOLUTION WAS ADOPTED.

That the City Council adopt Resolution No. 2026-004, declaring intention to annex territory to Community Facilities District No. 2016-3 (Maintenance Services) of the City of Corona, and adopting a map of the area proposed to be annexed thereto (Annexation No. 45).

7. COMMUNICATIONS FROM THE PUBLIC
The following residents addressed the Council: Chris McCoy, Kathy Armstrong, Richard Rogers, Adrian Aros, and Hanif Carter.

8. PUBLIC HEARINGS

8.1 GENERAL PLAN AMENDMENT 2024-0003 TO CHANGE THE LAND USE DESIGNATION OF PARCELS AT 323 S. BELLE AVENUE AND 322 S.

WASHBURN AVENUE FROM LOW DENSITY RESIDENTIAL AND GENERAL COMMERCIAL TO MIXED USE DOWNTOWN, INCLUDING 0.87 ACRES OF

RIGHT-OF-WAY
Mayor Casillas opened the Public Hearing. Sylvia Edwards, City Clerk, stated there was no correspondence received from the public. Mayor Casillas closed the Public Hearing.

Moved by: Jim Steiner
Seconded by: Wes Speake
That the City Council:

DRAFT
5 a. Approve General Plan Amendment 2024-0003 as recommended by the Planning and Housing Commission and adopt the Mitigated Negative Declaration and Mitigation Monitoring Reporting Program. b. Adopt Resolution No. 2026-002 approving the Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program and GPA2023-0003 as part of Cycle 1 of the General Plan Amendment for 2026, an amendment to the General Plan Land Use Map to change the land use of two parcels located at 323 S. Belle Avenue and 322 S.

Washburn Avenue from Low Density (LDR) and General Commercial (GC), respectively, to Mixed Use Downtown (MUD) and establish the MUD land use designation on approximately 0.87 acres of public right-ofway.

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

8.2 SPECIFIC PLAN AMENDMENT 2024-0003 TO THE DOWNTOWN

REVITALIZATION SPECIFIC PLAN TO CHANGE THE ZONING OF PARCELS AT 323 S. BELLE AND 322 S. WASHBURN FROM SINGLE FAMILY AND GATEWAY BUSINESS TO DOWNTOWN, INCLUDING 0.87 ACRES OF

PUBLIC RIGHT-OF-WAY
Mayor Casillas opened the Public Hearing. Sylvia Edwards, City Clerk, stated there was no correspondence received from the public. Mayor Casillas closed the Public Hearing.

Joe Morgan, resident, addressed the Council to provide comments in opposition of the proposed item.

Moved by: Wes Speake
Seconded by: Tony Daddario
That the City Council:
a. Approve SPA2024-0003, as recommended by the Planning and Housing Commission.
b. Introduce, by title only, and waive full reading of consideration of Ordinance No. 3425, first reading of an ordinance approving SPA2024- 0003, an amendment to the Downtown Revitalization Specific Plan to change the zoning designation of two parcels located at 323 S. Belle Avenue and 322 S. Washburn Avenue from Single Family (SF) and Gateway Business (GB), respectively, to Downtown (D) and to establish the Downtown (D) zoning on approximately 0.87 acres of public right-ofway within Fourth and Fifth Streets.

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

8.3 PARCEL MAP 38981 TO MERGE 13 LOTS WITH 0.87 ACRES OF PUBLIC RIGHT-OF-WAY TO CREATE ONE LOT TOTALING 4.70 ACRES FOR

COMMERCIAL PURPOSES, GENERALLY LOCATED AT THE NORTHWEST CORNER AREA OF W. SIXTH STREET AND S. MAIN STREET
Moved by: Tom Richins
Seconded by: Wes Speake
That the City Council approve Parcel Map 38981 based on the findings and conditions as approval as recommended by the Planning and Housing Commission.

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

8.4 PRECISE PLAN 2024-0001 TO REVIEW THE SITE PLAN, ARCHITECTURE,

AND OTHER FEATURES ASSOCIATED WITH A PROPOSED NORTHGATE

GONZALEZ MARKET AND REMODEL OF AN EXISTING COMMERCIAL
BUILDING ON 4.70 ACRES, LOCATED ON SIXTH STREET, BELLE AVENUE

AND MAIN STREET
Joe Morgan, resident, addressed the Council to provide comments in opposition of the proposed item.

Sandra Vanian, Planning Manager, provided a report.

Michelle Gonzelez, Northgate Market, provided comments.

The Council provided comments.

Moved by: Jacque Casillas
Seconded by: Wes Speake
That the City Council affirm the Planning and Housing Commission’s action granting PP2024-0001, based on the findings contained in the staff report and conditions of approval.

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

9. ADMINISTRATIVE REPORTS

9.1 REQUEST FROM VICE MAYOR SPEAKE TO EXPLORE CORDON PRICING

FOR THE GREEN RIVER ROAD/FOOTHILL PARKWAY CORRIDOR

DRAFT
7 Rosalva Ureno, City Traffic Engineer, and Leah Colmard, Associate City Engineer, provided a presentation.

The following residents addressed the Council to provide comments on the proposed item: Don Fuller, Chris McCoy, and Joe Morgan.

The majority of the Council agreed with Option A.

That the City Council provide feedback and direction on the procurement of a consultant to prepare a feasibility study to determine the possibility and legality of a Cordon Pricing program along the Green River Road/Foothill Parkway corridor between the State Route 91 (SR-91) to Interstate 15 (I-15). Additionally, the study would monitor how other Cordon Pricing programs are progressing, monitor vehicular volume of cut-through traffic within the city, impacts from the State Route 241 (SR-241)/State Route 91 (SR-91) and SR-91 Eastern Corridor Operations Projects (ECOP), and determine potential revenue sources and expenditures. The purpose of the program would be to deter cut-through traffic in Corona.

10. LEGISLATIVE MATTERS
None.

11. REPORTS FROM BOARDS AND COMMISSIONS

11.1 Library Board of Trustees

11.1.a Election of 2026 Chair

11.1.b Election of 2026 Vice Chair

11.1.c Library Board of Trustees Meeting Dates 2026

11.1.d Library Report - November 2025

11.1.e Friends of the Library Report

11.2 Planning & Housing Commission
None.

11.3 Parks & Recreation Commission

11.3.a Election of 2026 Chair

11.3.b Election of 2026 Vice Chair

11.3.c Parks & Recreation Commission Meeting Dates 2026

11.3.d Community Services Report

11.3.e Capital Improvement Project (CIP) Updates

11.4 Regional Meetings
None.

12. CITY ATTORNEY'S REPORTS AND COMMENTS
None.

DRAFT
8 13. CITY MANAGER'S REPORTS AND COMMENTS
None.

14. CITY COUNCIL MEMBERS' REPORTS AND COMMENTS
None.

15. FUTURE AGENDA ITEMS

15.1 PROVIDING THE USE OF CITY FACILITIES TO OTHER GOVERNMENT AGENCIES FREE OF CHARGE (W. SPEAKE) FEBRUARY 4, 2026

15.2 EXPLORE THE LEGALITIES OF REQUIRING CUP’S FOR OUTPATIENT DRUG ADDICTION TREATMENT CLINICS (W. SPEAKE) FEBRUARY 18, 2026

15.3 PROVIDE THE NUMBER OF HOUSING UNITS APPROVED BY THE CITY OF CORONA SINCE 2019 (W. SPEAKE) MARCH 4, 2026

15.4 UPDATE OF CHAPTER 5.34 PEDDLERS AND SOLICITORS (W. SPEAKE) MARCH 4, 2026

16. ADJOURNMENT
The next scheduled meeting of the Council is on February 4, 2026. Mayor Casillas adjourned the meeting at 8:19 pm.

DATE: 01/21/2026
TO: Honorable Mayor and City Council Members
FROM: Planning and Development Department
2026-11

REQUEST FOR CITY COUNCIL ACTION
SUBJECT:

SPECIFIC PLAN AMENDMENT 2024-0003 TO THE DOWNTOWN REVITALIZATION SPECIFIC PLAN TO CHANGE THE ZONING OF PARCELS AT 323 S. BELLE AND 322 S. WASHBURN FROM SINGLE FAMILY AND GATEWAY BUSINESS TO DOWNTOWN, INCLUDING 0.87 ACRES

OF PUBLIC RIGHT-OF-WAY
EXECUTIVE SUMMARY:

This staff report asks the City Council to approve Specific Plan Amendment 2024-0003 (SPA2024-0003) amending the Downtown Revitalization Specific Plan (DRSP) to change the zoning of two parcels located at 323 S. Belle Avenue and 322 S. Washburn Avenue from Single Family (SF) and Gateway Business (GB), respectively, to Downtown (D). The amendment also proposes extending the Downtown (D) zoning designation over approximately 0.87 acres of public right-of-way (Fourth and Fifth Streets) that are proposed for vacation. The Downtown zoning designation would facilitate the development of a Northgate Gonzalez Market on the project site. The Planning and Housing Commission at its meeting of December 8, 2025, recommended approval of the specific plan amendment to the City Council.

RECOMMENDED ACTION:

That the City Council:
a. Approve SPA2024-0003, as recommended by the Planning and Housing Commission.
b. Introduce, by title only, and waive full reading of consideration of Ordinance No. 3425, first reading of an ordinance approving SPA2024-0003, an amendment to the Downtown Revitalization Specific Plan to change the zoning designation of two parcels located at 323 S. Belle Avenue and 322 S. Washburn Avenue from Single Family (SF) and Gateway Business (GB), respectively, to Downtown (D) and to establish the Downtown (D) zoning on approximately 0.87 acres of public right-ofway within Fourth and Fifth Streets.

BACKGROUND & HISTORY:

On August 19, 2024, the applicant submitted Specific Plan Amendment SPA2024-0003 requesting to change the zoning of two parcels located at 323 S. Belle Avenue and 322 S.

Washburn Avenue from Single Family (SF) and Gateway Business (GB), respectively, to Downtown (D). Each lot is vacant and approximately 7,500 square feet in size. The amendment also includes extending the Downtown zoning designation over approximately

0.87 acres of public right-of-way within segments of Fourth and Fifth Streets that are proposed for vacation. The amendment would allow the two lots and right-of-way to be consolidated with 11 adjacent lots that are zoned Downtown (D). Lot consolidation is required to facilitate the development of a new 40,000 square foot Northgate Gonzalez Market and remodel of an existing 6,930 square foot commercial building.

The applicant is pursuing the lot consolidation through an associated entitlement, Parcel Map 38981, for which approval is being requested. Lot consolidation, however, cannot occur unless all 13 lots share the same zoning and General Plan land use designation. A corresponding general plan amendment to change the general plan land use of the two parcels is being processed separately under General Plan Amendment GPA2024-0003.

ANALYSIS:

SPA2024-0003 proposes to change the Single Family (SF) and Gateway Business (GB) zoning designations of two parcels, located at 323 S. Belle Avenue and 322 S. Washburn Avenue, to Downtown (D) to facilitate the development of a Northgate Gonzalez Market and remodel of an existing commercial building to a bank and restaurant. The market, bank and restaurant use are permitted in the Downtown (D) zoning designation.

The two subject properties, as well as surrounding properties, are located within the Downtown Revitalization Specific Plan (DRSP). Vacant lots to the south of the subject properties share the same Downtown (D) zoning designation, while the lots to the east are

zoned Gateway Business (GB) and developed with commercial uses. The lots to the north and west are zoned Single Family (SF) and contain single family residences.

According to Table 3.1 (Allowable Land Uses) of the DRSP, the Downtown zoning designation permits a wide range of uses, including commercial retail and service uses, cultural and entertainment uses, professional offices, government facilities, and residential uses such as live/work, multifamily, senior citizen, and mix-use development. Accordingly, the proposed Downtown zoning designation for the project site is compatible with the surrounding commercial and residential land uses and promotes a vibrant and successful downtown, which relies on support from nearby residential and commercial neighborhoods.

The replacement of the Single Family (SF) zoning designation with Downtown (D) on the property at 323 S. Belle Avenue does not conflict with Government Code Section 66300(h)(1) of the Housing Accountability Act, which prohibits a city or county from changing a land use designation or zoning to a less intensive use unless the city or county concurrently changes the development standards, policies, and conditions applicable to other parcels within the jurisdiction to ensure that there is no net loss in residential capacity. Although the applicant’s proposed development under the amendment is a commercial use, residential use continues to be provided under the proposed Downtown (D) zoning designation and would be subject to the established densities or floor area ratios of the General Plan.

Therefore, the proposed amendment maintains a no-net-loss in residential capacity.

SPA2024-0003 is consistent with the Mixed Use Downtown (MUD) general plan designation proposed by GPA2024-0003. The Downtown (D) zoning designation is compatible with the zoning and land uses that surround the project site and facilitates the applicant’s proposed commercial development. The amendment supports the objectives of the Downtown Revitalization Specific Plan, which includes promoting the Downtown area, stimulating economic development and reinvestment, encouraging economic activity that is compatible with the character and scale of the traditional downtown environment, and supporting high-quality development, which often requires the consolidation of multiple parcels.

FINANCIAL IMPACT:

The applicant paid the application processing fees of $6,302 to cover the cost of the Specific Plan Amendment.

ENVIRONMENTAL ANALYSIS:

Per Section 15070(b) of the State Guidelines for Implementing the California Environmental Quality Act (CEQA) and Section 6.02 of the City’s Local Guidelines, a Mitigated Negative Declaration (MND) was prepared for the project since the Initial Study identified that the project’s potentially significant effects to the environment are capable of being mitigated to

less than significant. Therefore, based on the project’s mitigation measures and mitigation monitoring and reporting program identified in the MND, there is no substantial evidence, in light of the whole record before the city, that the project may have a significant or potentially significant effect on the environment. The MND is recommended for adoption with associated GPA2024-0003.

Commenting Agencies
The MND was submitted to the State Clearinghouse (SCH #2025110646). The Planning and Development Department received comment letters from the following agencies in response to the MND:
• Department of Toxic Substance Control (DTSC)
• Caltrans
The DTSC comment letter, dated November 25, 2025, was received during the 20-day CEQA public review period. DTSC recommended that all structures proposed for demolition be surveyed for the presence of lead-based paints products, mercury, asbestos containing materials, and polychlorinated biphenyl (PCB) caulk in accordance with California environmental regulations and policies. DTSC further recommended that all import soil and fill materials be tested to ensure chemicals of concern meet the screening levels outlined in DTSC’s Preliminary Endangerment Assessment (PEA) Guidance Manual. In response to these recommendations, City staff added Public Works Condition #25 to the Conditions of Approval for Precise Plan PP2024-0001. Condition #25 requires compliance with DTSC’s recommendations during the permitting phase of project development.

The Caltrans comment letter, dated December 11, 2025, was received after the close of the 20-day CEQA public review period and following review of the project by the Planning and Housing Commission at its December 8, 2025 meeting. The City Traffic Engineer and the applicant’s traffic engineer, LL&G, reviewed the comments and determined that they do not identify any new or significant transportation-related impacts and do not alter the conclusions or outcome of the MND. Accordingly, LL&G prepared a response letter to Caltrans, dated December 23, 2025, addressing the Caltrans comments.

The comment letters, along with the response letter prepared by LL&G, are included as public correspondence in the Planning and Housing Commission Staff Report packet in Exhibit 4.

PLANNING AND HOUSING COMMISSION ACTION:

At its meeting of December 8, 2025, the Planning and Housing Commission considered the subject matter and took the following action:

Motion was made, seconded (Siqueland/Longwell) and carried unanimously, with Commissioner Vernon absent, that the Planning and Housing Commission recommend approval of SPA2023-0004 to the City Council based on the findings contained in the staff

report and conditions of approval. The minutes of the Planning and Housing Commission meeting are included as Exhibit 5.

PREPARED BY: ROCIO LOPEZ, SENIOR PLANNER
REVIEWED BY: SANDRA VANIAN, PLANNING MANAGER
SUBMITTED BY: JUSTIN TUCKER, ACTING PLANNING AND DEVELOPMENT DIRECTOR /

CITY MANAGER
ATTACHMENTS:

1. Exhibit 1 – Ordinance No. 3425

2. Exhibit 2 – Locational and zoning map

3. Exhibit 3 – Proposed Amendment

4. Exhibit 4 – Planning and Housing Commission Staff Report

5. Exhibit 5 – Draft Minutes of the Planning and Housing Commission meeting of December 8, 2025

ORDINANCE NO. 3425

AN ORDINANCE OF THE CITY OF CORONA,

CALIFORNIA, APPROVING AN AMENDMENT TO THE
DOWNTOWN REVITALIZATION SPECIFIC PLAN (SP98-
01) TO CHANGE THE LAND USE DESIGNATION FOR
TWO PARCELS LOCATED AT 323 S. BELLE AVENUE
AND 322 S. WASHBURN AVENUE FROM SINGLE

FAMILY AND GATEWAY BUSINESS, RESPECTIVELY,

TO DOWNTOWN, AND TO ESTABLISH THE
DOWNTOWN LAND USE DESIGNATION FOR 0.87

ACRES OF PUBLIC RIGHT OF WAY ON FOURTH AND
FIFTH STREETS (SPA2024-0003).

WHEREAS, on December 8, 2025, the Planning and Housing Commission of the City of Corona (“Commission”) recommended that the City Council of the City of Corona (“City Council”) approve SPA2024-0003 to amend the Downtown Revitalization Specific Plan (SP98- 01) to change the land use designation for two parcels located at 323 S. Belle Avenue and 322 S.

Washburn Avenue from Single Family (SF) and Gateway Business GB), respectively, to Downtown (D) and to establish the Downtown (D) land use designation for 0.87 acres of public right-of-way on Fourth and Fifth Streets (“Amendment”) to facilitate development of a commercial retail center on 4.70 acres of land located on the west side of N. Main Street, north of W. Sixth Street (“Project”); and
WHEREAS, in connection with the approval of GPA2024-0003, a general plan amendment to change the land use designation in the General Plan for the above referenced property from Low Density Residential and General Commercial to Mixed Use Downtown, which is being reviewed concurrently with this Amendment, the City Council approved a Mitigated Negative Declaration (“MND”) and Mitigation Monitoring and Reporting Program, which were prepared pursuant to California Environmental Quality Act (Public Resources Code Section 21000 et seq.) ("CEQA"), the State CEQA Guidelines and the City of Corona Local CEQA Guidelines and which included an analysis of the environmental impacts of this Amendment. The MND indicated that all potential environmental impacts from this Amendment were less than significant or could be mitigated to a less-than-significant level; and WHEREAS, the Commission based its recommendation to adopt this Amendment on the findings set forth below, and the adoption of the MND; and WHEREAS, on January 21, 2026, the City Council held a duly noticed public hearing at which all persons wishing to testify in connection with the Amendment were heard and the Amendment was comprehensively reviewed.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CORONA
DOES ORDAIN AS FOLLOWS:

2 SECTION 1. CEQA Findings. As the decision-making body for this Amendment, the City Council has reviewed and considered the information contained in the MND, the initial study and the administrative records for this Amendment, including all written and oral evidence provided during the comment period. Based upon the facts and information contained in the MND, the initial study and the administrative record, including all written and oral evidence presented to the City Council, the City Council finds that all environmental impacts of this Amendment are either less-than-significant or can be mitigated to a level of lessthan-significance pursuant to the mitigation measures outlined in the MND, the Mitigation Monitoring and Reporting Program, and the initial study.

SECTION 2. Zoning Findings. Pursuant to Sections 17.53.090 and 17.53.100 of the Corona Municipal Code, and based on the entire record before the City Council, including all written and oral evidence presented to the City Council, the City Council hereby makes and adopts the following findings:

A. SPA2024-0003 systematically implements and is consistent with the General Plan for the following reasons:
(i) SPA2024-0003 proposes zoning designations (Downtown) for the above referenced properties that are consistent with the Mixed Use Downtown land use designation proposed by General Plan Amendment GPA2024-0003. (ii) SPA2024-0003 proposes land uses that are consistent with current market demands and facilitates the development of property that is accessible from the freeway and in proximity to other land uses, consistent with General Plan Land Use Policy LU-3.3. (iii) SPA2024-0003, along with GPA2024-0003, PM 38981 and PP2024-0001, which are companion applications for the Project, is consistent with Land Use Goal 17 because it promotes retail commercial land uses along the street frontages that cumulatively create a pedestrian-oriented and active street environment, including retail shops, services, offices, entertainment, and similar and compatible uses as envisioned in the MUD designation.
(iv) SPA2024-0003 promotes General Plan Economic Development Goal ED-1 because it facilities the development of a new neighborhood grocery market and the repurposing of an existing commercial building for future use. It also implements General Plan Economic Development Goals ED-3 and ED-4 in that the Project will foster a strong and diversified economic base, will contribute to the revitalization and continued growth of the Downtown and the Sixth Street corridor, and enhances the City’s fiscal sustainability through commercial sales and property tax revenues.
(v) SPA2024-0003 is consistent with General Plan Land Use Policy LU-17.6 because it facilities the development of a “catalyst project” intended to attract and spur

3 the redevelopment of surrounding properties and contribute to the creation of an attractive, vibrant downtown.
(vi) SPA2024-0003 is consistent with the General Plan Land Use Policy LU-17.7 because it facilitates development of a new commercial center in the Downtown that is attractive and creates an image conducive to economic revitalization consistent with the Downtown Revitalization Specific Plan.
(vii) SPA2024-0003 is consistent with General Plan Land Use Policy LU-17.9 because it allows for the consolidation of 13 individual lots for the cohesive development of a well-designed downtown neighborhood grocery market and redesign of an old bank building into a restaurant/bank use that maintains the area’s character of low-rise and pedestrian-oriented buildings with distinctive storefronts.

B. SPA2024-0003 provides for development of a comprehensively planned project that is superior to development otherwise allowed under the conventional zoning classifications for the following reasons:
(i) The Downtown land use designation in the Downtown
Revitalization Specific Plan ensures that new development is attractive and creates an image conducive to economic revitalization consistent with the adopted specific plan per the General Plan Land Use Policy LU-17.7.
(ii) Future development of the Project would be required to adhere to the development standards of the Downtown land use designation, ensuring orderly development of the site so that impacts to other properties in the area are minimized.

C. SPA2024-0003 provides for the construction, improvement, or extension of transportation facilities, public utilities and public services required by the long-term needs of the project and/or other area residents, and complements the orderly development of the City beyond the project’s boundaries for the following reason:
(i) SPA2024-0003 provides for the construction, improvement, or extension of transportation facilities, public utilities and public services required by the longterm needs of the Project and complements the orderly development of the City beyond the Project's boundaries because the Project will be required to maintain all necessary components and infrastructure necessary for the Downtown Revitalization Specific Plan including water, sewer, circulation and drainage facilities.

D. SPA2024-0003 provides for the appropriate orientation and relationship between land uses within and adjacent to the project for the following reasons:

4 (i) SPA2024-0003 will facilitate development of the Project and appropriately provide for commercial uses in proximity to a major entry point to the City that is accessible from major street corridors, as well as local streets. (ii) SPA2024-0003 will ensure that commercial uses remain in the Downtown Core.

SECTION 3. Approval of the Amendment (SPA2024-0003). The Amendment to the Downtown Revitalization Specific Plan (SPA2024-0003) is hereby approved. The text and exhibits of the Downtown Revitalization Specific Plan (SP98-01) are hereby amended as shown in Exhibit “A” attached to this Ordinance and incorporated herein by reference.

SECTION 4. Custodian of Records. The documents and materials that constitute the record of proceedings on which these findings are based are located at City Hall for the City of Corona, located at 400 S. Vicentia Avenue, Corona, California. Justin Tucker, Acting Planning and Development Director, is the custodian of the record of proceedings.

SECTION 5. 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 newspaper published and circulated in the City of Corona. This Ordinance shall take effect and be in force on the 30 days after its adoption.

PASSED, APPROVED AND ADOPTED this 4
th day of February 2026.
______________________________________
Mayor of the City of Corona, California
ATTEST:
___________________________________
City Clerk of the City of Corona, California

5 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 January, 2026 and thereafter at a regular meeting held on the 4
th day of February 2026, it was duly passed and adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Corona, California, this 4
th day of February, 2026.
___________________________________
City Clerk of the City of Corona, California
[SEAL]

6 EXHIBIT “A”
AMENDMENT TO THE DOWNTOWN REVITALIZATION SPECIFIC PLAN (SP98-01) (THE PROPOSED LAND USE MAP IS ATTACHED BEHIND THIS PAGE)

GENERAL PLAN AMENDMENT EXISTING & PROPOSED LAND USE DESIGNATIONS

EXISTING

PROPOSED

DATE: 02/04/2026
TO: Honorable Mayor and City Council Members
FROM: Finance Department
2026-40

REQUEST FOR CITY COUNCIL ACTION
SUBJECT:

QUARTERLY SALES TAX REPORT – 2025, QUARTER 3 (JULY-SEPTEMBER) EXECUTIVE SUMMARY:

This staff report asks the City Council to receive and file the Quarter 3 2025 sales tax report provided by HdL Companies, with whom the City of Corona contracts for sales tax consulting services, including quarterly data reporting.

RECOMMENDED ACTION:

That the City Council receive and file the quarterly sales tax information from HdL Companies for Quarter 3 2025 (July – September).

BACKGROUND & HISTORY:

HdL Companies is contracted to provide sales tax consulting services for the City. On a quarterly basis, they review and analyze the City’s sales tax activity. Their resources provide them with information to understand sales tax trends and how the City is performing compared to agencies near Corona, agencies in Riverside County, Southern California, and the State. There is a one-quarter lag in when the information is available to HdL Companies for their review and analysis.

ANALYSIS:

Below are the Quarter 3 2025 (July – September) sales tax highlights. The attached newsletter and consensus forecast documents provide additional details.

Quarter 3 2025 (July – September)
From July to September 2025, Corona’s receipts were 2.0% lower than the same period in 2024 (Bradley Burns portion of sales tax). After accounting for reporting anomalies, actual sales declined by 1.6%. Statewide construction activity remained slow, challenged by housing affordability concerns and economic uncertainty. This contributed to lower tax revenue from the sale of building materials, contractors, and plumbing/electrical supplies during the quarter. Local business-industry revenue was impacted by a lower payment from a local supplier, compared with an unusually large payment in the prior year, and by a partial payment from a local heavy industrial supplier. A positive development included a higher allocation from the countywide tax pool, boosted by regional energy and utility-related investments.

Measure X, the City’s one percent voter-approved district tax, outperformed the previously mentioned Bradley-Burns returns, supported by strong local auto transportation spending and retail ecommerce activity.

Across Riverside County, taxable sales, excluding anomalies, grew by 2.5% compared to the same period last year. Sales tax across Southern California increased by 1.8%.

FINANCIAL IMPACT:

There is no financial impact associated with the recommended action.

ENVIRONMENTAL ANALYSIS:

This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the 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 is to receive and file a quarterly sales tax report, and there is no possibility that approval of the recommended actions will have a significant effect on the environment.

Therefore, no environmental analysis is required.

PREPARED BY: KIM SITTON, SENIOR FINANCIAL ADVISOR
REVIEWED BY: BRETT CHANNING, ASSISTANT CITY MANAGER
ATTACHMENTS:

1. Exhibit 1–2025-Q3 Sales Tax Update Newsletter

2. Exhibit 2–2025-HdL California Consensus Forecast Dec 2025

www.hdlcompanies.com | 888.861.0220
Q3 2024*
Q3 2025*
Legend
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
SALES TAX BY MAJOR BUSINESS GROUP *Allocation aberrations have been adjusted to reflect sales activity Building
and
Construction
Business
and
Industry
County
and State
Pools
General
Consumer
Goods
Autos
and
Transportation
Restaurants
and
Hotels
Fuel and
Service
Stations
Food
and
Drugs
CITY OF CORONA HIGHLIGHTS TOP 25 PRODUCERS
Published by HdL Companies in Winter 2026
Agile Sourcing Partners
All American Asphalt
Amazon Com Services
Amazon MFA
American Electric
Supply
CardinaleWay Hyundai
Corona Nissan
Costco
Culver Newlin
Downs Energy
Duralum Products
Ganahl Lumber
Guest Supply
Home Depot
Robertsons Ready Mix
Robertsons Ready Mix
Sams Club w/ Fuel
Spreen Honda Corona
Supply Patriot
Target
Toyota Of Corona
Vulcan Materials
Walmart Supercenter
We Do Equipment
Repair & Supply
West Coast Copper
Supply

SALES TAX UPDATE

CITY OF CORONA
3Q 2025 (JULY - SEPTEMBER)
Corona’s receipts from July - September
were 2.0% below the third sales period
in 2024. After adjusting for reporting
irregularities, actual sales declined 1.6%.

Statewide construction activity remained
slow, challenged by housing affordability
concerns and economic uncertainty. This
contributed to lower tax revenue from
the sale of building materials, contractor,
plumbing/electrical supplies during the
quarter.

Local business-industry revenue was
impacted by a lower payment from a
local supplier compared to an unusually
large payment in the prior year,
combined with a partial payment from a
local heavy industrial supplier.

Positive developments included a higher
allocation from the countywide use tax
pool, boosted by regional energy/utility
related investments.

Measure X, the City’s voter approved
district tax, exceeded Bradley Burns
returns discussed earlier, driven by strong
local auto transportation spending and
retail ecommerce activity.

After adjusting for irregularities, taxable
sales for all of Riverside County grew

2.5% compared to the same period
last year, while the Southern California
region increased 1.8%.

TOTAL:

4.1%
$11,067,416
Measure X
TOTAL: $ 15,122,452
-1.6% 2.5% 1.9%

COUNTY STATE
CORONA
3Q2025

TOP NON-CONFIDENTIAL BUSINESS TYPES
Q3 '25* Change Change Change
County HdL State
2,680.3 -4.6% -2.9% -0.7%
941.5 -1.8% -1.0% -1.2%
849.0 7.0% 4.6% 0.9%
720.1 -3.4% -0.7% -2.6%
622.2 -3.8% -4.8% -5.7%
577.3 -2.1% -0.3% -1.1%
561.7 -6.3% 4.4% 0.8%
548.9 2.9% 1.7% 0.7%
475.0 -3.6% -0.3% -1.8%
Corona
Business Type
Contractors
Discount Dept Stores
New Motor Vehicle Dealers
Building Materials
Service Stations
Plumbing/Electrical Supplies
Heavy Industrial
Casual Dining
Quick-Service Restaurants
Grocery Stores
*Allocation aberrations have been adjusted to reflect sales activity *In thousands of dollars 232.1 -2.1% -3.1% -3.1%

REVENUE BY BUSINESS GROUP
Corona This Quarter*
11%
Cons.Goods
3%
Food/Drug
7%
Fuel
15%
Pools
8%
Restaurants
10%
Autos/Trans.
26%
Building
20%
Bus./Ind.
*ADJUSTED FOR

ECONOMIC DATA
3Q 2025 CITY OF CORONA SALES TAX UPDATE

STATEWIDE RESULTS
California’s local one-cent sales and use tax
receipts for July through September were

1.8% higher than the same quarter last year,
after adjusting for accounting anomalies.

While growth appears modest, calendar
year 2025 remains on pace to rebound
following two years of declines. Combined
with second-quarter activity, the summer
period posted a 1% improvement over the
2024 season.

Sustained consumer trends reflected a
willingness to spend while remaining costconscious and prioritizing value. Online retailers, reporting to both businessindustry and countywide use tax pools (depending on inventory location at
purchase), recorded the strongest gains.

This momentum extended to brick-andmortar retailers, which also posted modest improvements. Seasonal “back-to-school”
activity boosted men’s and family apparel
along with shoe stores, lifting the General
Goods sector and enhancing expectations
for the upcoming holiday shopping period.

Tax receipts from restaurants edged higher,
supported by households’ continued desire
to eat out. Despite balancing higher menu
prices, tip fatigue, and tighter margins,
casual dining establishments generated the
largest gains. Overall, summer performance
appeared stable but lacked the tourism
surge many had hoped for.

Offsetting positive results was a decline
in revenue from fuel/service stations—
marking the 10th out of the last 11 quarters
with negative year-over-year change.

This trend is largely tied to West Texas
Intermediate (WTI) crude oil prices, which
hit their lowest monthly levels since 2021.

While lower gas prices may encourage
spending in other categories, potential oil
refinery closures in the coming year could
keep per-gallon prices elevated.

The food and drug sector continued its
downward trend as grocers remitted fewer
taxes, reflecting the challenge of generating
taxable revenue amid rising food prices.

Drug store filings have declined throughout
the year, driven partly by increased access
to medications through ecommerce
platforms and a contraction in physical store
footprints due to over-saturation and chain
bankruptcies.

Two sectors poised to benefit from
lower short-term interest rates—autos/
transportation and building/construction—
repeated a pattern of lackluster returns.

A minor uptick came from new auto
sales and leasing, while building material
suppliers struggled during the summer, likely
creating pent-up demand for repairs and
improvements ahead.

With the Federal Reserve considering
additional rate changes in early 2026,
optimism for improved consumer financing
conditions and stronger sales tax receipts
remains. As national tariff and trade talks
ease, inflationary pressures will continue to
shape spending behavior. For now, calendar
year 2025 closes with sluggish but stable
performance, awaiting broader economic
shifts.

888.861.0220 | [email protected] | hdlcompanies.com

CALIFORNIA FORECAST

SALES TAX TRENDS & ECONOMIC DRIVERS
DECEMBER 2025
Truckee, CA

STATEWIDE

SALES TAX TRENDS
2025/26 | 2026/27 2025/26 | 2026/27
Overview: The outlook for the U.S. and California economy is anchored to various policies and economic indicators, all of which add up to a limited anticipated improvement in sales tax revenues. Inflation has been mostly tamed as the Federal Reserve reduced the target interest rates three times in the latter part of this year. Consumers are constantly nervous about price increases, tied to ever-evolving tariff policies. Recent data shows state housing and labor markets have cooled. In summary, uncertainty leads customers to continue spending, albeit with an eye focused on essentials and value while awaiting a more stable, predictable economy.

Fuel/Service Stations 1.9% | 3.7%
Revenues declined 3.8% in 3Q25, reflecting lower average fuel prices relative to 3Q24 and a sharper-than-anticipated price correction at the pumps. From FY 2018-19 to FY 2024-25, consumption of motor vehicle gallons decreased by 13% while average fuel prices increased roughly 14%. Over the same period, taxable sales rose nearly 9%, confirming that local station operators successfully adjusted pricing and margins to offset weaker consumption. The shortterm forecast is modestly tempered, while the long-term outlook remains supported by structurally elevated pricing tied to Californiaspecific supply constraints, including confirmed refinery closures scheduled for late 2025 and April 2026, which remain on track.

General Consumer Goods 1.0% | 1.2%
General retail sales were robust, expanding 4.1%. The strength persisted from online sales where tax flows either indirectly to local jurisdictions by way of their pool share or concentrated to agencies with fulfillment centers. Brick-and-mortar storefronts (direct allocations) grew a moderate 0.8%. While big box retailers were flat, tax from apparel, furnishings, and jewelry categories thrived. As consumers held fast to pessimism, retail spending was supported by wage increases and a pullback in other discretionary areas. Affluent households have not hit the brakes while lower income shoppers remain focused on value. Even as rising prices may be adding pressure to reduce consumption, taxable spending is still gradually increasing. The outlook for this group anticipates mild growth.

Restaurants/Hotels 1.7% | 2.8%
Restaurants posted modest growth in the first quarter of the new fiscal year. Dining frequency continues to weaken, and when dining out, consumers increasingly favor value-oriented menu options. Tourism—responsible for 30% of combined restauranthotel expenditures—is a bright spot, with sustained gains forecast.

Quick-service restaurants face the most pronounced impact from reduced dining activity, as elevated menu prices drive customers toward alternatives. Households with constrained disposable income are cutting back significantly on fast-food purchases. Despite these challenges, the industry remains cautiously optimistic, strategically closing underperforming locations while investing in new outlets in high-potential markets.

State and County Pools 4.3% | 2.8%
Taxes generated by online transactions posted higher numbers for the sixth consecutive quarter. The makeup of these revenues has been steady over time; 50% coming from household purchases, one third from business-based activity, and the remainder from other segments. Shoppers are increasingly drawn to ecommerce buying as companies invest in technologies like AI agents, and expand social media platforms as sales channels. Early reports from multiple outlets show Black Friday through Cyber Monday spending hit record levels and this outcome is factored into the current year’s projection. Recent ecommerce YoY trends taking up a larger percentage of overall retail sales is presumed to keep expanding, supporting our forecast for this category.

Autos/Transportation 0.3% | 3.0%
National automobile sales have declined following the expiration of federal electric vehicle tax credits on September 30, 2025. In October, the California New Car Dealers Association projected that sales will remain under pressure through 2026, as higher prices—driven in part by tariffs filtering through the supply chain—and prolonged elevated costs contribute to buyer fatigue. Nevertheless, recent reductions in the Federal Funds rate, combined with strong pent-up demand and a record-high average vehicle age, are expected to support modest revenue growth in 2026. Beyond 2026, the market is anticipated to stabilize as consumers adapt to new pricing levels while taking advantage of lower financing costs and ongoing vehicle replacement needs.

Building/Construction -2.0% | 1.8%
Summer 2025 saw the continued decline in the value of materials purchased for infrastructure and roofing projects. A dwindling number of commercial and utility construction projects generated one-time tax allocations. Consistent demand for commercial and residential solar energy components ahead of the December 31, 2025 expiration of the 30% federal tax credit provided a positive offset. This forecast anticipates the Fed maintains its cautious approach to adjusting interest rates, prompting developers to gradually initiate new developments while existing homeowners find remodeling more affordable. In the near term, more infrastructure projects are expected to break ground plus data center and health care facilities stay on as steady contributors to the tax base.

Business/Industry 3.2% | 4.0%
Ecommerce and energy-related spending buoyed this group during third quarter 2025, expanding 5.1%. Shoppers favored online purchasing, so CA-based fulfillment centers once again boosted revenues. Results also grew from energy project outlays, medical-biotech equipment and support services companies. Yet, many sectors held flat or declined, tempered by variables such as lending rates and tariffs. Agricultural and farm/construction equipment struggled, facing numerous headwinds ranging from water scarcity to limited capital funding. The statewide outlook anticipates continued ecommerce growth, driving moderate gains for the current fiscal year and modest improvement thereafter; varying by the size and character of local businesses.

Food/Drugs -2.0 | -0.1%
Grocery stores’ payments fell 2.4% in 3Q25 as consumers actively searched for bargains and rethought their grocery buying habits.

Store-brand purchases increased, and 35% of all purchases are now conducted on ecommerce platforms. Convenience/liquor markets experienced a mix of economic impacts from inflation to reductions in alcohol consumption. Cannabis enjoyed modest increases as unit sales rose while the State Excise Tax declined. Drug stores focused on cost cutting measures and withdrawals from underperforming markets; one major chain shuttered all remaining stores. AI technologies are being deployed more fully to better serve customers and address employee retention challenges.

TOTAL 1.7% | 2.6%
2025/26 | 2026/27
HdL Companies California Forecast
December 2025 Page 34 of 447
Proposition 172
Fiscal year 2024-25 statewide Proposition 172 (P-172) revenues declined 0.3%, which follows the 0.9% drop in fiscal year 2023-24.

The current forecast expects modest growth of .85% and 2.3% for fiscal years 2025-26 and 2026-27, respectively. Current county projections include pro-rata factors published by the State Controller’s Office in July 2025 (based on updated calendar year 2024 actual sales tax performance). As the calendar year Bradley-Burns results fluctuate due to taxpayer modifications, audits, economic impacts, etc., pro-rata growth factors and resultant P-172 revenues will vary for many counties.

NATIONAL AND STATEWIDE

ECONOMIC DRIVERS
U.S. Real GDP Growth 2.3% | 2.3%
The U.S. economy remains resilient, with real GDP up 2.1% yearover-year in Q2 2025, reflecting continued expansion despite elevated uncertainty. Growth has moderated and job creation softened, showing signs of jobless expansion, with employment gains lagging output. This is due to productivity gains and AI-driven automation, as well as trade and policy uncertainty prompting firms to pause hiring. Inflation has moved past its peak but remains above the Federal Reserve’s 2% target, with core PCE inflation at 2.6%.

The decline in the 10-year Treasury yield from about 4.8% to roughly

4.15% implies stable inflation and interest-rate expectations, giving the Fed some flexibility in addressing labor-market conditions.

CA Unemployment Rate 5.7% | 5.5%
California’s unemployment rate has remained stable, reaching 5.6% in September 2025 and staying within a narrow 5.4% to 5.6% range over the past year. The consistency of the rate indicates that the labor market has settled into a new equilibrium. Labor market flows have slowed, with hiring no longer keeping pace with worker separations, limiting net job growth. Increases in unemployment have been concentrated among labor force re-entrants and longerduration job seekers, while job losses have remained stable.

Together, these patterns point to slower job switching and longer job searches, rather than an increase in layoffs, keeping unemployment elevated even as the labor market avoids broader deterioration.

CA Total Nonfarm
Employment Growth 0.1% | 0.6%
California’s labor market has remained largely flat, with year-overyear nonfarm employment growth slowing to just 0.3% as of September 2025, which translates to an increase of roughly 62,000 jobs statewide. Job gains have decelerated steadily from the postpandemic rebound, leaving employment growth well below national and peer-state trends. At the same time, the labor force expanded by about 174,000 people between September 2024 and September 2025; however, the labor force participation rate has remained near 62%, roughly in line with pre-pandemic trends, as growth in the working-age population has kept pace with labor market absorption.

U.S. Unemployment Rate 4.4% | 4.3%
The unemployment rate has continued to edge up, though maintaining historically low levels below 5%; reaching 4.6% in November 2025 compared to 4.2% in 2024, and 3.7% in 2023. Unemployment has increased due to slower job creation as firms scale back hiring amid AI adoption and uncertainty around trade policy. Layoffs and quits remain subdued, pointing to limited job loss but weaker labor market dynamism. Labor force participation hovers pre-pandemic levels near 62%, largely unchanged in recent years, indicating limited expansion in the available workforce. As a result, economic growth may translate less directly into broad-based employment gains. Total nonfarm employment momentum has slowed, with YoY growth falling to 0.6% in November 2025, the weakest pace in over four years.

CA Residential
Building Permits 94,175 | 102,021
Residential permitting in California remains weak through Q3 2025, continuing to limit growth in the state’s housing supply.

After peaking in early 2022 at more than 30,000 permits per quarter, activity declined to 23,532 permits in Q3 2025, down

6.4% year-over-year and among the lowest quarterly totals in four years. The slowdown is evident even as the state enacted major reforms in 2025 to exempt many infill projects from routine environmental review to shorten approval times. Despite these reforms, projects in major metros continue to encounter entitlement delays and plan check backlogs due to staff shortages. Without more consistent acceleration in approvals, housing production is unlikely to expand enough to ease affordability pressures.

CA Median Existing
Home Price $736,709 | $739,652
California’s housing market has cooled, with weaker demand and limited housing supply. As of the third quarter of 2025, median home prices were $735,401, up 1.13% YoY, while home sales declined

4.2%, reflecting affordability constraints and elevated borrowing costs. As of November 2025, inventory remains tight, with 92,930 homes for sale, down 1.9% from a year earlier, and months of supply holding at three, well below levels associated with a balanced market. Median days on market increased to 49, indicating slower transactions. Together, these conditions point to a market adjusting through reduced activity rather than broad-based price declines. 2025/26 | 2026/27 2025/26 | 2026/27
HdL Companies California Forecast
December 2025 Page 35 of 447
Beacon Economics LLC
310.571.3399 | BeaconEcon.com
Beacon Economics has proven to be one of the most thorough and accurate economic research/analytical forecasting firms in the country. Their evaluation of the key drivers impacting local economies and tax revenues provides additional perspective to HdL’s quarterly consensus updates. The collaboration and sharing of information between Beacon and HdL helps both companies enhance the accuracy of the work that they perform for their respective clients.

HdL Companies
888.861.0220 | [email protected] | hdlcompanies.com California’s allocation data trails actual sales activity by three to six months. HdL compensates for the lack of current information by reviewing the latest reports, statistics and perspectives from fifty or more economists, analysts and trade associations to reach a consensus on probable trends for coming quarters. The forecast is used to help project revenues based on statewide formulas and for reference in tailoring sales tax estimates appropriate to each client’s specific demographics, tax base and regional trends.

Delivering Insight, Revenue, and Efficiency
to Local Government

DATE: 02/04/2026
TO: Honorable Mayor and City Council Members
FROM: Finance Department
2026-46

REQUEST FOR CITY COUNCIL ACTION

CORONA HOUSING AUTHORITY ACTION

CORONA UTILITY AUTHORITY ACTION
SUBJECT:

FISCAL YEAR 2026 QUARTER 2 BUDGETARY ADJUSTMENTS
EXECUTIVE SUMMARY:

This staff report asks the Council to consider budgetary adjustments for Fiscal Year 2026 based on the Quarter 2 results and staff recommendations for funding level changes. On a quarterly basis, staff presents an update to the City Council on the current fiscal year revenue and expenditures. As part of the process, departments review the operating and capital improvement project funding levels and provide recommendations for budgetary adjustments. For Quarter 2, staff recommends appropriating $9,742,490, increasing estimated revenues by $46,668, and authorizing budget transfers across multiple funds, as noted in Exhibit 1.

RECOMMENDED ACTION:

That the City Council:
a. Appropriate $9,742,490, increase estimated revenues by $46,668, and authorize budget transfers across multiple funds, as noted in Exhibit 1 - Appropriations, Estimated Revenues, and Transfers.
i. Authorize one (1) additional full-time Parks Supervisor position in the Community Services Department and an appropriation and estimated

revenue increase across multiple funds as noted in Exhibit 1. The total recurring costs for this position are approximately $191,227. b. Approve the Second Amendment to the Professional Services Agreement with RSG, Inc. to increase the total compensation to $282,765. i. Authorize the City Manager, or his designee, to prepare and execute a Second Amendment to the RSG, Inc. Mobilehome Rent Stabilization Ordinance. Professional Services Agreement, bringing the total maximum compensation from $269,265 to $282,765.
ii. Authorize the City Manager, or his designee, to approve non-substantive amendments, including term extensions, to the Second Amendment to the RSG, Inc. Professional Services Agreement so long as any such amendments will not cause the City to exceed the approved total maximum compensation in the Agreement.
c. Approve a Change Order to Increase Dooley Enterprises, Inc., Purchase Order to $150,000.
i. Authorize the City Manager, or his designee, to issue a Change Order to the Dooley Enterprises, Inc. Blanket Purchase Order (B260174) in the amount of $50,000 for a total purchase order of $150,000. ii. Authorize the City Manager, or his designee, to issue annual purchase orders in the amount of $150,000 per fiscal year for the period of July 1, 2026 through June 30, 2030.
d. Approve a Change Order to Increase DC Frost Associates, Inc., Purchase Order to $300,000.
i. Authorize the City Manager, or his designee, to issue a Change Order to the DC Frost Associates, Inc. Blanket Purchase Order (B260570) in the amount of $200,000 for a total purchase order of $300,000. ii. Authorize the City Manager, or his designee, to issue annual purchase orders in subsequent years in the amount of $300,000, as DC Frost Associates, Inc. has been identified as a sole source provider. e. Approve the Fifth Amendment to Maintenance and General Services Agreement with Valverde Construction to increase the total compensation by $175,000 for total of $395,000.
i. Authorize the City Manager, or his designee, to issue a Change Order to the Valverde Construction Blanket Purchase Order (B260507) in the amount of $175,000 for a total purchase order of $395,000. ii. Authorize the City Manager, or his designee, to issue annual purchase orders in the amount of $395,000 through the term of the agreement. f. Approve the Third Amendment to the Maintenance and General Services Agreement with Augustine General Engineering, Inc. to increase the total compensation by $250,000 for total of $450,000.

i. Authorize the City Manager, or his designee, to issue a Change Order to the Augustine General Engineering, Inc. Blanket Purchase Order (B260446) in the amount of $250,000 for a total purchase order of $450,000.
ii. Authorize the City Manager, or his designee, to issue annual purchase orders in the amount of $450,000 through the term of the agreement. g. Approve the Fourth Amendment to the Maintenance and General Services Agreement with W.A. Rasic Construction Co. to increase the total compensation by $250,000 for a total of $470,000.
i. Authorize the City Manager, or his designee, to issue a Change Order to the W.A. Rasic Construction Co. Blanket Purchase Order (B260629) in the amount of $250,000 for a total purchase order of $470,000. ii. Authorize the City Manager, or his designee, to issue annual purchase orders in the amount of $470,000 through the term of the agreement. h. Approve the Fourth Amendment to the Maintenance and General Services Agreement with A and Y Asphalt Contractors, Inc. to increase the total compensation by $200,000 for a total of $800,000.
i. Authorize the City Manager, or his designee, to issue a Change Order to the A and Y Asphalt Contractors, Inc. Blanket Purchase Order (B260151) in the amount of $200,000 for a total purchase order of $800,000. i. Receive and file the FY 2026, Quarter 2 City Manager Purchases Report. j. 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).
k. Authorize the City Manager, or his designee, to prepare and process any budgetary and cash transfers relating to the issuance of Water and Wastewater Revenue Bonds previously approved at the September 17, 2025 Council Meeting.
l. Authorize the City Manager, or his designee, to issue a purchase order in the amount of $28,160.81 to American Electric Supply for streetlight electrical equipment.
i. Authorize the City Manager, or his designee, to issue a purchase order in the amount of $28,160.81 to American Electric Supply for streetlight electrical equipment.

BACKGROUND & HISTORY:

On a quarterly basis, the Finance Department provides a budget update to the City Council. As part of the quarterly process, departments provide operating and Capital Improvement Project (CIP) adjustments that need to be addressed in the fiscal year (FY).

The Finance Department prepares a consolidated request for the City Council’s consideration.

ANALYSIS:

Item a - Appropriate $9,742,490, increase estimated revenues by $46,668, and authorize budget transfers across multiple funds as noted in Exhibit 1 - Appropriations, Estimated Revenues, and Transfers.

Appropriations

1. Part Time Seasonal Maintenance Team
Due to ongoing deferred maintenance needs across City parks, staff is requesting the creation of a part-time seasonal maintenance team to supplement existing resources.

The seasonal team will perform deferred park maintenance services from April through October (seven months) each calendar year. Funding for part-time personnel costs for the remainder of the fiscal year is available in the Community Services Department part-time personnel budget.

Staff requests an appropriation in the amount of $51,500 from General Fund 110 to the Community Services operating budget for non-personnel costs, including tools, uniforms, and materials and supplies, which are pro-rated for the remainder of FY 2026. Community Services plans to request three additional part-time positions during the next budget process to fully staff the seasonal maintenance team. Recurring annual costs, part-time personnel and non-personnel, in the amount of $174,600 will be recommended through the annual budget process.

2. North Corona Mall Acquisition/Improvements, Operating and Maintenance Project No. 78390
As the City continues to manage numerous activities at the Corona Mall, additional appropriations are needed to support the North Corona Mall Acquisition/Improvements, Operating and Maintenance Project No. 78390. The requested funding includes $15,800 for appraisal professional services, $100,000 for legal services related to the North Mall acquisition activity, relocation costs in the amount of $157,009, and FF&E payments in the amount of $59,517 associated with the project.

Additionally, staff requests funding in the amount of $335,000 to cover the acquisition costs at the North Mall (141 W. Corona Mall). This acquisition was per the direction of City Council to pursue a wholesale redevelopment of the North Mall and to support the ultimate goal of creating a thriving, vibrant downtown.

Staff requests a total appropriation of $667,326, including $332,326 from the General Fund 110 and $335,000 from the Measure X Fund 120 to the North Corona Mall Acquisition/Improvements, Operating and Maintenance Project No. 78390 to fund all project needs including professional services, relocation, FF&E and redevelopmentrelated costs.

3. Rent Stabilization Contract Amendment with RSG, Inc.

A significant amount of support has been needed from RSG leading up to the December 3, 2025, City Council adoption of the Mobilehome Park Rent Stabilization Ordinance (RSO), especially since the RSO became effective on January 2, 2026. To support the creation of numerous English and Spanish forms that were developed and uploaded to the RSO website, an additional $13,500 is needed to increase the RSG Agreement to $282,765.

Staff requests an appropriation in the amount of $13,500 from the General Fund 110 to the City Manager’s Office operating budget to support the contract increase for RSG, Inc. associated with the creation of additional English and Spanish forms.

4. Parks & Trails Foothill Extension Landscaping
The Parks & Trails Foothill Extension Landscaping Project was allocated $75,000 in the FY 2025 operating budget for the Foothill Extension Infill Planting project. Although the project was completed in FY 2025, not all budgeted funds were spent, and some invoices were received and paid in FY 2026. As the funds were not carried over into FY 2026, a reappropriation of $54,365 is requested from the Measure X Fund 120 to the Community Services operating budget to cover these expenditures, bringing total project spending across the two fiscal years to $73,789.64.

Staff requests an appropriation in the amount of $54,365 from the Measure X Fund 120 to the Community Services operating budget to fund expenditures associated with the Parks & Trails Foothill Extension Landscaping Project.

5. Purchase Dump Truck Trailer to support the EMT
As the Enhanced Maintenance Team (EMT) begins performing citywide maintenance and improvement projects, staff have identified the need for a dump truck trailer to safely and efficiently remove trash, debris, and construction materials generated from city jobs. This equipment will improve productivity, reduce reliance on outside hauling services, and allow EMT staff to complete projects in a timely and cost-effective manner.

Staff requests an appropriation in the amount of $15,500 from the Measure X Fund 120 to the Community Services operating budget to purchase a dump truck trailer to support citywide maintenance and improvement projects.

6. Additional Operating budget for EMT
As the Equipment Maintenance Team (EMT) works on citywide maintenance and improvement projects for the remainder of FY 2026, additional operating budget is needed to support ongoing work. The requested funding includes $7,500 for construction materials, $2,500 for equipment, $5,000 for maintenance and repair, $5,000 for professional services, and $3,160 to support personnel needs such as uniforms, safety shoes, and office supplies. These resources will ensure projects are completed safely, efficiently, and on schedule.

Construction Materials/Equipment (Non-CIP): Construction materials/equipment associated with non-CIP projects that are requested by Community Services or other departments when no specific project funding has been identified. These are typically smaller operational projects such as minor interior modifications, building reconfigurations, installation of fixtures or casework, accessibility adjustments, or quick turn improvements needed to support operations, programs, or safety. Having this funding available allows the EMT to address these requests efficiently without delaying work while separate funding is identified.

Maintenance & Repair (Non-CIP): This account would be used when EMT is assigned a non-CIP project that requires specialized vendor support beyond what can be completed in house. Examples include limited electrical, plumbing, welding, specialty fabrication, or system troubleshooting needed to complete a project EMT is leading.

This provides a mechanism to supplement staff work, resolve unforeseen conditions, and keep small projects moving forward without having to elevate them to full CIP status.

Professional/Contract Services (Non-CIP): This funding would cover professional services such as minor design assistance, drafting, engineering input, or technical drawings for projects that are not formally attached to a CIP. These are typically projects where a simple set of plans, calculations, or design concepts are needed to validate scope, pricing, constructability, or code compliance before EMT can proceed.

Staff requests an appropriation in the amount of $23,160 from Measure X Fund 120 to the Community Services operating budget to fund these additional operating needs for EMT through the remainder of FY 2026.

7. Additional/Separate report for Asbestos
The original scope of work included a single report covering both buildings: 725 Main and 122 E. 6th Street. During project review, the team determined it was necessary to prepare two separate reports and conduct a 400-point sample analysis. The vinyl floor tile in the 725 Main building (the former 99 Cents store) is also classified as damaged asbestos-containing material (ACM), which must be addressed with a Procedure 5 work plan.

Staff requests an appropriation in the amount of $3,800 from Measure X Fund 120 to the South Corona Mall Acquisition/Improvements, Operating and Maintenance Project No. 79320 for additional funds needed to prepare separate asbestos reports.

8. Purchase of Dual Sport Motorcycles for Temescal Valley Area To support public safety and community policing in the Temescal Valley area, staff is requesting funding for two (2) 2025 Honda CRF450RL Police Edition dual-sport motorcycles. E-bikes and e-motorcycles are frequently operated by untrained riders, including juveniles, often in violation of traffic laws on sidewalks, trails, and residential areas. These challenges are particularly evident in south Corona, where expanding neighborhoods, open-space trails, parks, and commercial corridors have led to increased complaints and calls for service.

The Honda CRF450RL Police Edition dual-sport motorcycles are designed for hybrid deployment, enabling officers to operate on roadways and off-road trails, parks, and open spaces. They will be stored at the Temescal Public Safety Facility and primarily deployed within the south Corona/Temescal Valley area to enhance enforcement, increase police visibility, and improve response times.

Staff requests an appropriation in the amount of $36,573 from the Temescal Canyon Police Facilities Fund 208 to the Vehicle Procurement-Police, Operating and Maintenance Project No. 68341 to purchase motorcycles. The motorcycles will not be included in the City’s motor pool program and will be maintained as on-account units, with maintenance and repair costs charged directly to the department on an asneeded basis.

9. Electric Utility Cost for CFD 2018-2
The City recently assumed responsibility for the electric utility costs associated with Community Facilities District (CFD) 2018-2, which average approximately $150 per month. These costs are necessary to support ongoing operations within the district and will be incorporated into the City’s regular budget in future fiscal years.

Staff requests an appropriation in the amount of $1,800 from CFD 2018-2 Special Tax B Sierra Bella Fund 237 to the Community Services Department operating budget to cover the current fiscal year expense.

10.Additional Landscape Trimming for various CFD
As seasonal growth increases during the spring and summer months, additional landscape trimming is needed to maintain the appearance and overall condition of CFDs 2001-1 and 97-1, as well as LMD 84-2, Zone 14. These services will allow staff to address deferred aesthetic improvements, enhance curb appeal, and uphold a high standard of presentation for public spaces, supported by the healthy fund balances in each account.

Staff requests a total appropriation of $10,600, including $400 from CFD 97-1 Landscape Maintenance Fund 248, $2,200 from CFD/LMD 2001-1 Landscape Maintenance Fund 249, and $8,000 from LMD 84-2 Zone 14 Landscape Maintenance Fund 461 to the Community Services Department operating budget to support additional landscape trimming service for various CFD areas.

11.Transition of CFD 2016-3 Zone 26 Landscaping and Utility Services As maintenance responsibilities transition from the developer to the City, CFD 2016- 3 Zone 26 will require City-funded landscaping and utility services beginning in February 2026. The City will contract with Integrity Arborist to provide landscaping services at a monthly cost of $505.57, plus on-call services as needed, and will also assume recycled water and electricity costs for the area. The requested appropriations will cover these expenses for the remainder of FY 2026, with ongoing costs to be incorporated into future budgets.

Staff requests an appropriation in the amount of $4,750 from the CFD 2016-3 Zone 26 Fund 272 to the Community Services operating budget to fund landscaping and utility services transitioning to the City. This amount includes $2,600 for landscaping services and $2,150 for utility services.

12.Second Street Family and Multifamily Affordable Housing Project Following prior City Council action, funds to support the Second Street Multifamily 115-unit affordable housing project were appropriated in FY 2025 and were supposed to be carried into FY 2026, but were left off the carryover list. Further, on August 20, 2025, City Council took additional action to approve a First Amended and Restated Affordable Housing Disposition and Development Agreement and to reaffirm the City’s $14,096,871.15 financial investment in the project which included a $7,535,280 LowModerate Income Housing Asset Loan and a $531,591.15 Federal HOME ARP Loan as well as a $4,030,000 Land Acquisition Loan and a $2,000,000 Impact fee Loan.

Staff requests an appropriation in the amount of $7,535,280 from Corona Housing Authority Fund 291 to the City Manager’s Office operating budget to support Second Street Family and Multifamily Affordable Housing Project.

13.Waterline at Sherman Avenue
The Waterline at Sherman Avenue project will replace approximately 2,400 linear feet of existing 8-inch and 10-inch asbestos cement pipe (ACP) and steel waterline along Sherman Avenue with approximately 2,400 linear feet of 12-inch ductile iron pipe (DIP). The existing waterline was installed between 1957 and 1963 and has a documented history of leaks. Replacement is necessary to improve system reliability.

Staff requests an appropriation of $432,000 from the 2025 Water Revenue Bonds Fund 512 to the Waterline Replacement at Sherman Avenue, Capital Improvement Project No. UT-2027-01, to fund administrative and design costs. Construction funding will be requested once the design has been completed.

14.USACE License for Potholing and Soil Testing in the Prado Flood Control Basin The Butterfield Drive Reclaimed Water Flow Control Station Project involves the construction of a dedicated flow control station designed to deliver reclaimed water from the Western Riverside County Regional Wastewater Authority (WRCRWA) Treatment Plant into the City’s reclaim water distribution system. This project supports the City’s efforts to reduce reliance on imported water and improve local water supplies. Completion of the project design requires potholing and soil testing, which requires a license from the United States Army Corps of Engineers (USACE). The project is partially funded by Title XVI Water Reclamation and Reuse Program administered by the United States Bureau of Reclamation, which reimburses 25 percent of eligible project costs. The remaining 75 percent of design and construction costs are funded through a Cooperative Agreement with the Riverside County Flood Control and Water Conservation District. However, costs associated with obtaining the USACE license are ineligible for reimbursement or cost-match, as federal grant funds cannot be used to pay another federal agency.

Staff requests an appropriation in the amount of $50,000 from the Reclaimed Water Utility Fund 567 to the Butterfield Drive Reclaimed Water Flow Control StationIneligible, Capital Improvement Project No. UT-2023-03, to cover the administrative costs charged by USACE for the review and issuance of the required license to perform potholing and soil testing within the Prado Flood Control Basin.

15.Waterline Infrastructure
The Utilities Department (UD) Below Ground Maintenance division is responsible for the maintenance of approximately 740 miles of potable and reclaimed waterlines. UD uses both in-house staff and contractors to replace mainlines and repair ruptured or leaking water lines. During the current fiscal year, UD has experienced a significant increase in main breaks and required repairs, resulting in greater reliance on contractors. Repairs include both emergency responses and proactive maintenance.

Proactive maintenance is identified through AI technology or when infrastructure exhibits frequent leaks or deterioration due to age. UD also collaborates with the Public Works Department to coordinate repairs in areas scheduled for paving projects, maximizing efficiency and reducing costs.

To address the increased workload and maintain system reliability, UD requests an appropriation in the amount of $625,000 from the Water Utility Fund 570 to the Waterline Infrastructure, Operating and Maintenance Project No. 71930, to complete the necessary maintenance work through the end of the fiscal year.

16.Greenfield Electric Utility Arc Flash Study
UD completed an Arc Flash study for all Water and Sewer electrical facilities in 2024.

At that time, the Greenfield Electric Utility Arc Flash Study was put on hold in order to obtain additional information from Southern California Edison (SCE) related to the Wholesale Distribution Access Tariff (WDAT) connection points. SCE recently provided the short circuit data required to complete the study, allowing UD to move forward with the Greenfield Arc Flash Study. The purpose of the arc flash study is to enhance the safety of UD’s facilities by identifying electrical hazards and implementing necessary safety measures in compliance with National Fire Protection Association (NFPA) 70E. Arc flash ratings are a measure of the potential danger faced by operating electrical equipment. A higher rating means more personal protective equipment (PPE) is required. This study evaluates and reduces the arc flash rating to minimize the danger to staff and contractors for all electric utility facilities and equipment, including medium voltage switchgear, circuit breakers, pad-mounted switches, vault-mounted switches, and service transformers.

Staff requests an appropriation in the amount of $34,000 from the Greenfield Electric Utility Fund 578 to the Arc Flash Study, Operating and Maintenance Project No. 76280, to complete the Arc Flash Study for the Greenfield electric utility facilities.

17.Police Department Patrol Vehicle Unit #79352 replacement Corona Police Department marked patrol vehicle Unit #79352 sustained extensive damage during a traffic collision. Following inspection by the City’s Fleet Services, the vehicle was determined to be a total loss and cannot be repaired. In accordance with Administrative Policy No. 09100.508, which governs vehicle replacement based on age, mileage, dependability, safety, and excessive maintenance costs, staff is requesting funding to replace the existing unit.

The City’s standard practice for patrol vehicle replacement includes both the purchase of the vehicle and the required upfitting, which typically consists of communications equipment (Motorola radios), lighting systems, computer mounts, gun racks, storage, and other modifications necessary to support Police Department operations. The replacement vehicle is essential to the Corona Police Department’s daily operational effectiveness and ensures continued compliance with applicable labor group Memorandum of Understanding (MOU) agreements, as personnel assigned to special assignments require the use of unmarked vehicles.

Staff requests an appropriation in the amount of $90,000 from Vehicle Replacement Fund 684 to the Vehicle Procurement–Police, Operating and Maintenance Project No. 68341 to replace Patrol Vehicle Unit #79352. As this request is for the replacement of an existing patrol vehicle, funding is appropriately requested from the Vehicle Replacement Fund.

18.One (1) additional Parks Supervisor full-time position

The Community Services Department is requesting approval to create a second Parks Supervisor position to maintain service quality as our parks and landscape system grows in scale and complexity. This second supervisor will help clearly divide supervisory responsibilities between park assets and citywide landscape areas and help advance maintenance and service goals outlined in the Parks and Recreation Master Plan.

A second supervisor will increase day-to-day coverage for inspections, work orders, safety/compliance, scheduling, and staff development, and allow each supervisor to be present in the field and responsive to the public. Splitting responsibilities also creates focused oversight by allowing the supervisor responsible for parks to focus on playgrounds, athletic fields, park restrooms, and park facilities, and the supervisor responsible for landscape areas to focus on medians, streetscapes, facility grounds, tree care, and vendor contract management. This division mirrors the operational realities of park vs. landscape work and formalizes a structure previously anticipated in departmental work plans.

By creating a second Parks Supervisor position, staff expects to provide higher and more consistent service levels across parks and landscape areas, clear lines of responsibility that improve decision-making, training, and accountability, and stronger contract compliance and customer satisfaction in landscaped areas.

Staff requests an appropriation in the amount of $46,668 across various LMD/CFD funds (as noted below) and an appropriation and estimated revenue increase by the same amount in the General Fund. No additional costs to the General Fund – the districts that benefit will cover the expenses.

Fund Amount
CFD 2018-1 Special Tax B (Bedford) Fund (236) 926.00
CFD 2018-2 Special Tax B Sierra B Fund (237) 2,085.00
CFD 2017-2 Valencia Spec Tax B Fund (238) 234.00
CFD 2002-2 Landscape Maint Fund (247) 356.00
CFD 97-1 Landscape Maint Fund (248) 1,123.00
CFD/LMD 2001-1 Landscape Maint Fund (249) 4,093.00
CFD 2002-3 Landscape Maint Fund (251) 166.00
CFD 2011-1 Landscape/Lighting Fund (253) 448.00
CFD 2016-2 Terrassa Spec Tax B Fund (255) 99.00
CFD 2016-3 Zone-2 Boardwalk Fund (257) 314.00
CFD 2016-3 Zone 17 Corona Med Ctr Fund (263) 7.00
CFD 2016-3 Zone 19 Cresta/Promenade Fund (265) 101.00
CFD 2016-3 Zone 26 Tm 36605/36608 Fund (272) 123.00
CFD 2016-3 Zone 15 Northpoint Fund (287) 2.00
CFD 2016-3 Zone 6 TM31373 Fund (294) 209.00

Fund Amount
LMD 84-2 Zone 4 Landscape Maint Fund (456) 545.00
LMD 84-2 Zone 6 Landscape Maint Fund (457) 262.00
LMD 84-2 Zone 7 Landscape Maint Fund (458) 329.00
LMD 84-2 Zone 10 Landscape Maint Fund (460) 22,305.00
LMD 84-2 Zone 14 Landscape Maint Fund (461) 4,113.00
LMD 84-2 Zone 15 Landscape Maint Fund (462) 372.00
LMD 84-2 Zone 17 Landscape Maint Fund (463) 169.00
LMD 84-2 Zone 18 Landscape Maint Fund (464) 72.00
LMD 84-2 Zone 19 Landscape Maint Fund (468) 479.00
LMD 84-2 Zone 20 Landscape Maint Fund (470) 7,674.00
LMD 84-2 Zone 1 Landscape Maint Fund (471) 62.00
Total 46,668.00
Transfers

19.Budgetary transfer in the amount of $135,000 from the Border Park, Capital Improvement Project No. FC-2025-03 to the Community Services Department operating budget within the General Fund 110 for deferred park maintenance.

A budgetary transfer in the amount of $135,000 from the Border Park, Capital Improvement Project No. FC-2025-03, is requested to support deferred maintenance across multiple parks. The Border Park project is complete and has a remaining balance of $349,000. Additional funding will be transferred to other projects as noted on item 19 below, and the rest will be returned to fund balance.

Proposed improvements include installing decomposed granite tree rings at Butterfield Dog Park in high-traffic areas where turf is difficult to grow and maintain ($10,000); repairing fences and installing new bleachers at Santana Park baseball fields and dugouts ($50,000); and replenishing playground chips at Buena Vista, Chase, Eagle Glen, Husted, Kellogg, Ontario, and Promenade Parks ($75,000).

20.Budgetary transfer in the amount of $72,000 from the Border Park, Capital Improvement Project No. FC-2025-03 to the Community Services Department operating budget within General Fund 110 for playground resurfacing.

A budgetary transfer in the amount of $72,000 from the Border Park, Capital Improvement Project No. FC-2025-03, is requested for playground resurfacing at El Cerrito ($55,000) and Eagle Glen ($17,000) Parks to address wear and deterioration and ensure continued compliance with safety and accessibility standards. Resurfacing these playgrounds will reduce fall hazards, extend the life of existing equipment, and provide a safer, more inclusive play environment for families and children in the community.

21.Budgetary transfer in the amount of $50,000 ($48,830 from the General Fund 110 and $1,170 from the Measure X Fund 120) from the Building Evaluation and Maintenance Plan, Operating & Maintenance Project No. 78150 to the Community Services Department operating budget to remodel the Historic Civic Center Gym Fitness Room.

A budgetary transfer in the amount of $50,000 from the Building Evaluation and Maintenance Plan, Operating & Maintenance Project No. 78150 is requested to remodel the Fitness Room at the Historic Civic Center Gym to accommodate programs being relocated from the Circle City Center. The remodel will ensure that these programs can continue operating without disruption and provide a functional, updated space for community fitness activities.

22.Budgetary transfer in the amount of $181,370 from the Historic Civic Center Fountain and Sign, Capital Improvement Project No. FC-2023-07, to Historic Civic Center Facility Capital Improvement, Capital Improvement Project No. FC-2022-08 within Measure X Fund 120.

A budgetary transfer in the amount of $181,370 from Historic Civic Center Fountain and Sign, Capital Improvement Project No. FC-2023-07, to Historic Civic Center Facility Capital Improvement, Capital Improvement Project No. FC-2022-08, is requested to combine existing Historic Civic Center Capital Projects into a single project to streamline project management and budgeting while maintaining focus on facility maintenance.

23.Budgetary transfer in the amount of $160,000 from the Building Evaluation and Maintenance Plan, Operating & Maintenance Project No. 78150 to a new Operating & Maintenance Project titled, City Hall Interior Paint, within the Measure X Fund 120.

Budgetary transfer in the amount of $160,000 from the Building Evaluation and Maintenance Plan, Operating & Maintenance Project No. 78150 is requested for painting the interior of City Hall in areas where carpet is being replaced. Painting will be completed prior to carpet installation.

24.Budgetary transfer in the amount of $75,000 from the Lead or Copper Service Line Audit, Operating and Maintenance Project No. 79390, to create and fund an Operating and Maintenance Project titled Urban Water Management Plan Update within the Water Utility Fund 570.

The Urban Water Management Plan (UWMP) is a state-mandated planning document that California urban water suppliers delivering 3,000 acre-feet of water or more annually, or serving 3,000 or more urban connections, are required to prepare every five years and submit to the California Department of Water Resources (DWR). The UWMP supports long-term water resource planning by demonstrating how adequate water supplies will be available to meet existing and projected demands. The plan evaluates the reliability of water sources over a 20-year planning horizon and includes water demand management measures and water shortage contingency planning. The

2020 UWMP was completed in conjunction with the Potable Water Master Plan project. A separate operating and maintenance project is requested to manage and complete the 2025 UWMP update.

Staff requests a budgetary transfer in the amount of $75,000 from the Lead or Copper Service Line Audit, Operating and Maintenance Project No. 79390, to create and fund a new Operating and Maintenance Project titled Urban Water Management Plan Update within the Water Utility Fund 570. Project No. 79390 has available savings, and both projects are within the same fund and project category.

25.Budgetary transfer in the amount of $876,150 from the Sewer Main Rehabilitation at Various Locations, Operating and Maintenance Project No. 77840, to the Sewer Line Infrastructure, Operating and Maintenance Project No. 71950 within the Sewer Utility Fund 572.

Operating and Maintenance Project No. 77840 Sewer Main Rehabilitation at Various Locations and Operating and Maintenance Project No. 71950 Sewer Line Infrastructure both support the repair and rehabilitation of the City’s sewer collection system. While O&M Project No. 77840 addresses sewer main deficiencies identified through CCTV inspections to prevent emergency failures, O&M Project No. 71950 focuses on routine sewer line maintenance and repairs identified through preventative maintenance and customer reports. Both projects share the goal of maintaining system reliability, preventing sanitary sewer overflows, and minimizing long-term repair costs.

Staff requests a budgetary transfer in the amount of $876,150 from the Sewer Main Rehabilitation at Various Locations, Operating and Maintenance Project No. 77840, to the Sewer Line Infrastructure, Operating and Maintenance Project No. 71950 within the Sewer Utility Fund 572 to consolidate these projects in order to streamline administration and provide greater flexibility in addressing sewer infrastructure needs.

26.Budgetary transfer in the amount of $557,083 from the Water Reclamation Facility #1 Boiler Design, Capital Improvement Project No. UT-2023-09, to the Water Reclamation Facility #1 Blower and Digester Piping and Equipment Upgrade, Capital Improvement Project No. UT-2023-08 within the Sewer Utility Fund 572.

The Water Reclamation Facility No. 1 Blower and Digester Piping and Equipment Upgrade project is designed to replace and upgrade the existing motor control centers in the primary gallery and blower room, replace obsolete mechanical and electrical equipment, and install a new Digester 3 mixing system. These improvements will enhance operational efficiency for Digesters 1, 2, and 3. The Boiler Project aims to install a redundant boiler to maintain optimum temperature for the three digesters, ensuring reliable and efficient operation. The two projects are closely related and share overlapping construction areas within Water Reclamation Facility No. 1. Staff has determined that combining them into a single capital improvement project will improve project management and tracking, enable concurrent construction, reduce

overall project duration, and achieve cost savings and efficiencies through coordinated efforts.

Staff requests a budgetary transfer in the amount of $557,083 from the Water Reclamation Facility No. 1 Boiler Project, Capital Improvement Project No. UT-2023- 09, to the Water Reclamation Facility No. 1 Blower and Digester Piping and Equipment Upgrade, Capital Improvement Project No. UT-2023-08 within the Sewer Utility Fund 572, to combine the projects and achieve overall efficiency.

Item b. Approve the Second Amendment to Professional Services Agreement with RSG Inc. to increase the total compensation to $282,765.

On February 21, 2024, the City of Corona entered into a Professional Services Agreement with RSG, Inc. for the creation and implementation of a Mobilehome Rent Stabilization Ordinance (RSO) for a total of $269,265. The initial term of the agreement was from January 1, 2024 to January 1, 2026.

On September 17, 2025, a no-cost First Amendment to the Agreement with RSG, Inc. was executed to extend the term of the Agreement to January 1, 2027. The no-cost term extension was processed to ensure there was no gap in support from RSG and with plans for full expenditure of the balance of contract funds by June 30, 2026 or sooner.

A significant amount of support has been needed from RSG leading up to the December 3, 2025 City Council adoption of the Mobilehome Park Rent Stabilization Ordinance (RSO), especially since the RSO became effective on January 2, 2026. To support the creation of numerous English and Spanish forms that were developed and uploaded to the RSO website, an additional $13,500 is needed to increase the RSG Agreement to $282,765.

The $282,765 Agreement with RSG, Inc. essentially will provide complex technical support to the City of Corona from February 21, 2024 through June 30, 2026, at which time, the funds will be exhausted.

Item c. Approve the change order to Increase Dooley Enterprises, Inc., Purchase Order to $150,000.

The Police Department (PD) utilizes funds allocated to Dooley Enterprises for the procurement of ammunition required for officer training, quarterly firearms qualifications, annual duty ammunition replacement, and supplemental/advanced law enforcement firearms training. Dooley Enterprises is the official authorized law enforcement distributor for Winchester ammunition in California and several other states, and the City has a longstanding relationship with this vendor due to their reliability and ability to meet the department’s needs, including cost savings from direct pickup and proven product performance. An increased demand, limited supply, and long lead times for ammunition orders (up to nine months). The department’s

justification for additional funds is to replenish depleted stock, maintain adequate surplus for ongoing and advanced training, and ensure compliance with POST (Peace Officer Standards and Training) requirements.

The City Council previously approved an annual budget allocation of $150,000 for purchases from Dooley Enterprises through the standard budget process. This amount was established based on prior year expenditures and anticipated needs at the time of budget adoption. The staff requests authorization to increase total compensation by $50,000 for a total purchase order of $150,000 for B260174.

Item d. Approve the change order to Increase DC Frost Associates, Inc., Purchase Order to $200,000.

The Utilities Department maintains sewer treatment equipment from manufacturers including Parkson, Gorman-Rupp, and Vulcan at Water Reclamation Facilities Nos. 1, 2, and 3, as listed on PCC 3400 Exclusive Standard Specifications. These assets require ongoing preventive maintenance and the availability of standardized replacement parts to ensure reliable operation. To support both timely repairs and the ability to stock critical spare parts in the City’s warehouse for emergency and preventive maintenance needs, the required parts and related services are available only through DC Frost Associates, Inc., the sole authorized regional representative.

Staff requests City Council approval to issue an annual purchase order to DC Frost Associates, Inc. for a not-to-exceed amount of $300,000 per fiscal year in FY26 and subsequent years for as-needed standardized equipment parts in accordance with Corona Municipal Code Section 3.08.140(B). The staff requests authorization to increase total compensation by $200,000 for a total purchase order of $300,000 for B260570.

Items e - h. Approve the Amendments to the Maintenance and General Services Agreement with Various Essential System Repair and Asphalt Repair Contractors The Utilities Department (UD) Below Ground Maintenance division is responsible for the maintenance of approximately 740 miles of potable and reclaimed waterlines and 470 miles of sewer lines throughout the City. UD uses both in-house staff and contractors to install mainlines and repair ruptured or leaking water and sewer lines.

During the current fiscal year, UD has experienced a significant increase in main breaks and required repairs, resulting in greater reliance on contractors. Repairs include both emergency responses and proactive maintenance. Proactive maintenance is identified through AI technology, CCTV inspections, or when infrastructure exhibits frequent leaks or deterioration due to age. UD also collaborates with the Public Works Department to coordinate repairs in areas scheduled for paving projects, maximizing efficiency and reducing costs. To address the increased workload and maintain system reliability, UD requests the following actions:

e. Approve the Fifth Amendment to Maintenance and General Services Agreement with Valverde Construction to increase the total compensation by $175,000 for total of $395,000.
f. Approve the Third Amendment to the Maintenance and General Services Agreement with Augustine General Engineering, Inc. to increase the total compensation by $250,000 for total of $470,000.
g. Approve the Fourth Amendment to the Maintenance and General Services Agreement with W.A. Rasic Construction Co. to increase the total compensation by $250,000 for a total of $470,000.
h. Approve the Fourth Amendment to the Maintenance and General Services Agreement with A and Y Asphalt Contractors, Inc. to increase the total compensation by $200,000 for a total of $800,000.

Item i. Receive and file the FY 2026, Quarter 2 City Manager Purchases Report.

At the meeting of August 20, 2025, the City Council approved an ordinance making changes to the Corona Municipal Code CMC relative to the City’s purchasing and procurement policies. Part of those changes included a provision to provide the City Council a quarterly report summarizing the instances during the preceding quarter wherein the City Manager exercised his purchasing authority. Specifically, section

3.08.040(M) of the CMC reads as follows: “Quarterly Reporting ($75,001 to $125,000 Purchases). No less often than quarterly, a written report shall be presented to the City Council which lists purchases, contracts or agreements authorized by the City Manager, or his or her designee, between $75,001 to $125,000. The report shall include the dollar amount, date, approving employee title, brief description of services or items purchased, and the vendor, contractor or other entity.” The attached report includes this information for Fiscal Year 2026, quarter two.

Item j. 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).

The list was previously approved on June 4, 2025, at the time of the FY 2026 budget adoption and once again on November 5, 2025, during the Quarter 1 Budget Update.

However, the list is now being brought forth for Council approval once again to clearly identify the vendors listed for each of the renewal and replacement services. All dollar amounts remain the same as approved on November 5, 2025.

The City relies on a diverse array of software and hardware solutions to maintain essential operations. To streamline the procurement process and eliminate the need for repeated City Council approvals for routine annual renewals and necessary

replacements of existing software and hardware, staff recommends approving the attached comprehensive list of items exceeding $55,000. This consolidated approach enhances efficiency, maximizes cost savings, and ensures uninterrupted service by facilitating timely renewals and replacements without requiring ongoing Council review for each item. This practice aligns with common municipal procedures across California, where cities such as Murrieta employ similar bulk approval mechanisms for annual technology maintenance agreements, subscriptions, and replacements to ensure operational continuity and procurement efficiency. Additionally, the City leverages cooperative purchasing agreements, such as those offered through GSA and NASPO, when available, to secure the most competitive pricing and optimize cost savings for these renewals and replacements.

The City's ability to maintain operational continuity depends on ongoing annual maintenance payments or subscriptions for software and hardware, as well as periodic replacements to ensure systems remain functional and up-to-date. Many vendors are the sole providers of support and replacement components for their proprietary products, including software, hardware, and related professional services.

Furthermore, due to stringent security requirements for credit card processing and online payment gateways, financial software vendors often maintain exclusive partnerships with specific third-party providers. These partnerships ensure compliance with certifications and evolving security standards, effectively designating those providers as sole sources for the associated applications and hardware.

Item k. Authorize the City Manager, or his designee, to prepare and process any budgetary and cash transfers relating to the issuance of Water and Wastewater Revenue Bonds previously approved at the September 17, 2025 Council Meeting.

At the September 17, 2025 Council Meeting, Resolution No. 2025-001 and 2025-002 were adopted which authorized the issuance of Water Revenue Bonds and Wastewater Revenue Bonds, respectively. Bonds proceeds are to be allocated to finance a portion of the costs for various Water and Wastewater capital improvements projects. Though both resolutions were adopted, the staff report did not explicitly provide any authority to appropriate those projects with the bond proceeds. Staff is now requesting that the City Council provide the City Manager, or his designee, the authority to prepare and process any budgetary and cash transfers relating to the issuance of both Water Revenue and Wastewater Revenue Bonds.

Item l. Authorize the City Manager, or his designee, to issue a purchase order in the amount of $28,160.81 to American Electric Supply for streetlight electrical equipment.

The Warehouse stocks electrical equipment necessary to make repairs to the City’s streetlights. When soliciting to replenish warehouse supplies, staff contacts vendors for quotes and issues a PO to the lowest responsive, responsible bidder, pursuant to the Corona Municipal Code (CMC). Specific to street light poles, Warehouse staff followed this process twice thus far this Fiscal Year and issued two POs to American Electric Supply, together totaling $105,721.95. The Warehouse now needs to

replenish street light cobra heads fixtures and nodes as there are none in stock. Staff solicited three vendors for the equipment and again received the lowest quote from American Electric Supply in the amount of $28,160.81. However, with this third purchase, the total compensation to this vendor for the Fiscal Year will be $133,852.76. Pursuant to the CMC, expenditures exceeding $125,000 require City Council approval. Therefore, staff is requesting that the City Council authorize the City Manager, or his designee, to issue a purchase order in the amount of $28,160.81 to American Electric Supply to replenish street light electrical equipment, and authorize the City Manager, or his designee, to approve any documents necessary to implement any change order up to 10% of the purchase order amount, or $2,816.10, as authorized by CMC section 3.08.080(J).

FINANCIAL IMPACT:

Approval of recommended action a will have financial impacts as noted below. There is sufficient fund balance or working capital available in each of the respective funds for approval of the recommended actions.

Fund # Fund Appropriations
Estimated
Revenue
Increase Net Impact
110 General Fund (110)

443,994

46,668

397,326
120 Measure X Fund (120)

431,825

-

431,825
208
Temescal Canyon Police Facilities Fund
(208)

36,573

-

36,573
236
CFD 2018-1 Special Tax B (Bedford) Fund
(236)

926

-

926
237
CFD 2018-2 Special Tax B Sierra B Fund
(237)

3,885

-

3,885
238
CFD 2017-2 Valencia Spec Tax B Fund
(238)

234

-

234
247 CFD 2002-2 Landscape Maint Fund (247)

356

-

356
248 CFD 97-1 Landscape Maint Fund (248)

1,523

-

1,523
249
CFD/LMD 2001-1 Landscape Maint Fund
(249)

6,293

-

6,293
251 CFD 2002-3 Landscape Maint Fund (251)

166

-

166
253 CFD 2011-1 Landscape/Lighting Fund (253)

448

-

448
255
CFD 2016-2 Terrassa Spec Tax B Fund
(255)

99 -

99 257 CFD 2016-3 Zone-2 Boardwalk Fund (257)

314

-

314
263
CFD 2016-3 Zone 17 Corona Med Ctr Fund
(263)

7 -

7 265
CFD 2016-3 Zone 19 Cresta/Promenade
Fund (265)

101

-

101
272
CFD 2016-3 Zone 26 Tm 36605/36608
Fund (272)

4,873

-

4,873
287 CFD 2016-3 Zone 15 Northpoint Fund (287)

2 -

2 291 Corona Housing Authority Fund (291)

7,535,280

-

7,535,280
294 CFD 2016-3 Zone 6 Tm31373 Fund (294)

209

-

209
456
LMD 84-2 Zone 4 Landscape Maint Fund
(456)

545

-

545
457
LMD 84-2 Zone 6 Landscape Maint Fund
(457)

262

-

262
458
LMD 84-2 Zone 7 Landscape Maint Fund
(458)

329

-

329
460
LMD 84-2 Zone 10 Landscape Maint Fund
(460)

22,305

-

22,305
461
LMD 84-2 Zone 14 Landscape Maint Fund
(461)

12,113

-

12,113
462
LMD 84-2 Zone 15 Landscape Maint Fund
(462)

372

-

372

463
LMD 84-2 Zone 17 Landscape Maint Fund
(463)

169

-

169
464
LMD 84-2 Zone 18 Landscape Maint Fund
(464)

72 -

72 468
LMD 84-2 Zone 19 Landscape Maint Fund
(468)

479

-

479
470
LMD 84-2 Zone 20 Landscape Maint Fund
(470)

7,674

-

7,674
471
LMD 84-2 Zone 1 Landscape Maint Fund
(471)

62 -

62 512 2025 Water Revenue Bonds Fund (512)

432,000

-

432,000
567 Reclaimed Water Utility Fund (567)

50,000

-

50,000
570 Water Utility Fund (570)

625,000

-

625,000
578 Greenfield Electric Utility Fund (578)

34,000

-

34,000
684 Fleet Replacement Fund (684)

90,000

-

90,000
Total

$9,742,490

$46,668

$9,695,822
Approval of recommended actions b through l will not have an additional 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 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 is to approve budgetary adjustments for Fiscal year 2026, and there is no possibility that approval of the recommended actions will have a significant effect on the environment. Therefore, no environmental analysis is required PREPARED BY: LUIS NAVARRO, BUDGET SUPERVISOR
REVIEWED BY: KIM SITTON, SENIOR FINANCIAL ADVISOR
ATTACHMENTS:

1. Exhibit 1 – Appropriations, Estimated Revenues, and Transfers_Revised

2. Exhibit 2 – DC Frost Associates Inc. - Sole Source Letter

3. Exhibit 3 – Augustine General Engineering, Inc. – Third Amendment

4. Exhibit 4 – W.A. Rasic Construction Company – Fourth Amendment

5. Exhibit 5 – Valverde Construction, Inc. – Fifth Amendment

6. Exhibit 6 – A & Y Asphalt Contractors, Inc. – Fourth Amendment

7. Exhibit 7 – FY 2026, Q2 City Manager Purchases Report

8. Exhibit 8 – IT Renewal-Replacement Items FY25-26_Revised

Exhibit 1 - Appropriations, Estimated Revenues, and Transfers Item Department Fund Amount Description
1 Community Services General Fund (110) 51,500 Seasonal maintenance positions to perform deferred park maintenance, including uniforms, materials, and one-time tool purchases. 2 Economic Development General Fund (110) 332,326 Appraisal services, legal services, relocation costs, and FF&E payments for North Corona Mall Acquisition/Improvements, Operating and Maintenance Project No. 78390. 3 City Manager's Office General Fund (110) 13,500 Additional budget needed for additional support for RSG, Inc. to create numerous English and Spanish forms. 18 Community Services General Fund (110) 46,668 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

General Fund (110) Total 443,994
4 Community Services Measure X Fund (120) 54,365 Reappropriate Parks & Trails Foothill Extension Landscaping Project that was budgeted in FY 2025 in operating budget with invoice paid in FY 2026. 5 Community Services Measure X Fund (120) 15,500 Purchase dump trailer to support the Enhanced Maintenance Team to perform citywide maintenance and improvement projects. 6 Community Services Measure X Fund (120) 23,160 Operating budget for Enhanced Maintenance Team for the reminder of FY 2026. 2 Economic Development Measure X Fund (120) 335,000 141 N. Corona Mall Acquisition, North Corona Mall Acquisition/Improvements, Operating and Maintenance Project No. 78390. 7 Economic Development Measure X Fund (120) 3,800 Additional/separate report to address asbestos for South Corona Mall Acquisition/Improvements, Operating and Maintenance Project No. 79320.

Measure X Fund (120) Total 431,825
8 Police Temescal Canyon Police Facilities Fund (208) 36,573 Purchase of two (2) 2025 Honda Police edition dual sport motorcycles for use in the Temescal Valley area.

Temescal Canyon Police Facilities Fund (208) Total 36,573 18 Community Services CFD 2018-1 Special Tax B (Bedford) Fund (236) 926 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

CFD 2018-1 Special Tax B (Bedford) Fund (236) Total 926 9 Community Services CFD 2018-2 Special Tax B Sierra B Fund (237) 1,800 Recently assumed Electric utility cost for CFD 2018-2. 18 Community Services CFD 2018-2 Special Tax B Sierra B Fund (237) 2,085 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

CFD 2018-2 Special Tax B Sierra B Fund (237) Total 3,885 18 Community Services CFD 2017-2 Valencia Spec Tax B Fund (238) 234 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

CFD 2017-2 Valencia Spec Tax B Fund (238) Total 234
18 Community Services CFD 2002-2 Landscape Maint Fund (247) 356 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

CFD 2002-2 Landscape Maint Fund (247) Total 356
10 Community Services CFD 97-1 Landscape Maint Fund (248) 400 Additional landscape trimming need to enhance appearance and overall condition. 18 Community Services CFD 97-1 Landscape Maint Fund (248) 1,123 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

CFD 97-1 Landscape Maint Fund (248) Total 1,523
10 Community Services CFD/LMD 2001-1 Landscape Maint Fund (249) 2,200 Additional landscape trimming need to enhance appearance and overall condition. 18 Community Services CFD/LMD 2001-1 Landscape Maint Fund (249) 4,093 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

CFD/LMD 2001-1 Landscape Maint Fund (249) Total 6,293
18 Community Services CFD 2002-3 Landscape Maint Fund (251) 166 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

CFD 2002-3 Landscape Maint Fund (251) Total 166
18 Community Services CFD 2011-1 Landscape/Lighting Fund (253) 448 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

CFD 2011-1 Landscape/Lighting Fund (253) Total 448
18 Community Services CFD 2016-2 Terrassa Spec Tax B Fund (255) 99 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

CFD 2016-2 Terrassa Spec Tax B Fund (255) Total 99
18 Community Services CFD 2016-3 Zone-2 Boardwalk Fund (257) 314 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

CFD 2016-3 Zone-2 Boardwalk Fund (257) Total 314
18 Community Services CFD 2016-3 Zone 17 Corona Med Ctr Fund (263) 7 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

CFD 2016-3 Zone 17 Corona Med Ctr Fund (263) Total 7
18 Community Services CFD 2016-3 Zone 19 Cresta/Promenade Fund (265) 101 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

CFD 2016-3 Zone 19 Cresta/Promenade Fund (265) Total 101 11 Community Services CFD 2016-3 Zone 26 Tm 36605/36608 Fund (272) 4,750 Assumption of landscape and utilities services from the developer; contracting with Integrity Arborist for monthly and on-call services, and covering recycled water and electricity for the remaining fiscal year.
18 Community Services CFD 2016-3 Zone 26 Tm 36605/36608 Fund (272) 123 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

CFD 2016-3 Zone 26 Tm 36605/36608 Fund (272) Total 4,873 18 Community Services CFD 2016-3 Zone 15 Northpoint Fund (287) 2 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

CFD 2016-3 Zone 15 Northpoint Fund (287) Total 2
12 City Manager's Office Corona Housing Authority Fund (291) 7,535,280 Reappropriation for the Second Street Family and Multifamily Affordable Housing Project, inadvertently not carried forward from FY 2025 to FY 2026.

Corona Housing Authority Fund (291) Total 7,535,280
18 Community Services CFD 2016-3 Zone 6 Tm31373 Fund (294) 209 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

CFD 2016-3 Zone 6 Tm31373 Fund (294) Total 209
18 Community Services LMD 84-2 Zone 4 Landscape Maint Fund (456) 545 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

LMD 84-2 Zone 4 Landscape Maint Fund (456) Total 545
18 Community Services LMD 84-2 Zone 6 Landscape Maint Fund (457) 262 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

LMD 84-2 Zone 6 Landscape Maint Fund (457) Total 262
18 Community Services LMD 84-2 Zone 7 Landscape Maint Fund (458) 329 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

LMD 84-2 Zone 7 Landscape Maint Fund (458) Total 329
18 Community Services LMD 84-2 Zone 10 Landscape Maint Fund (460) 22,305 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

LMD 84-2 Zone 10 Landscape Maint Fund (460) Total 22,305 10 Community Services LMD 84-2 Zone 14 Landscape Maint Fund (461) 8,000 Additional landscape trimming need to enhance appearance and overall condition. 18 Community Services LMD 84-2 Zone 14 Landscape Maint Fund (461) 4,113 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

LMD 84-2 Zone 14 Landscape Maint Fund (461) Total 12,113 18 Community Services LMD 84-2 Zone 15 Landscape Maint Fund (462) 372 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

LMD 84-2 Zone 15 Landscape Maint Fund (462) Total 372
18 Community Services LMD 84-2 Zone 17 Landscape Maint Fund (463) 169 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

LMD 84-2 Zone 17 Landscape Maint Fund (463) Total 169
18 Community Services LMD 84-2 Zone 18 Landscape Maint Fund (464) 72 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

LMD 84-2 Zone 18 Landscape Maint Fund (464) Total 72
18 Community Services LMD 84-2 Zone 19 Landscape Maint Fund (468) 479 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

LMD 84-2 Zone 19 Landscape Maint Fund (468) Total 479
18 Community Services LMD 84-2 Zone 20 Landscape Maint Fund (470) 7,674 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

LMD 84-2 Zone 20 Landscape Maint Fund (470) Total 7,674 18 Community Services LMD 84-2 Zone 1 Landscape Maint Fund (471) 62 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

LMD 84-2 Zone 1 Landscape Maint Fund (471) Total 62
Appropriations
City of Corona Page 1 Fiscal Year 2026 Quarter 2 Budgetary Adjustments Page 59 of 447 Exhibit 1 - Appropriations, Estimated Revenues, and Transfers 13 Utilities 2025 Water Revenue Bonds Fund (512) 432,000 Waterline Replacement at Sherman Ave, Capital Improvement Project No. UT-2027-01. 2025 Water Revenue Bonds Fund (512) Total 432,000
14 Utilities Reclaimed Water Utility Fund (567) 50,000 Butterfield Drive Reclaimed Water Flow Control Station (Ineligible Costs), Capital Improvement Project No. UT-2023-03.

Reclaimed Water Utility Fund (567) Total 50,000
15 Utilities Water Utility Fund (570) 625,000 Waterline Infrastructure, Operating and Maintenance Project No. 71930.

Water Utility Fund (570) Total 625,000
16 Utilities Greenfield Electric Utility Fund (578) 34,000 Arc Flash Study, Operating and Maintenance Project No. 76280.

Greenfield Electric Utility Fund (578) Total 34,000
17 Public Works / Police Fleet Replacement Fund (684) 90,000 Replacement of total loss unit #79352, PD Vehicle Procurement Operating and Maintenance Project No. 68341.

Fleet Replacement Fund (684) Total 90,000
Appropriations (All Funds) Total 9,742,490
Item Department Fund Amount Description
18 Community Services General Fund (110) 46,668.00 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

General Fund (110) Total 46,668.00
Item Project Fund Amount Description
Deferred Maintenance Across
Multiple Parks
General Fund (110) 135,000
Border Park General Fund (110) (135,000)
Playground Resurfacing General Fund (110) 72,000
Border Park General Fund (110) (72,000)
Civic Center Gym General Fund (110) / Measure X Fund (120) 50,000 Building Evaluation & Maintenance Plan General Fund (110) / Measure X Fund (120) (50,000) Historic Civic Center Facility
Capital Improvements
Measure X Fund (120) 181,370
Historic Civic Center Fountain and Sign Measure X Fund (120) (181,370) City Hall Paint Measure X Fund (120) 160,000
Building Evaluation & Maintenance Plan Measure X Fund (120) (160,000) Urban Water Management Plan Update Water Utility Fund (570) 75,000 Lead or Copper Service Line Audit Water Utility Fund (570) (75,000) Sewer Line Infrastructure Sewer Utility Fund (572) 876,150 Sewer Main Rehabilitation at Various
Locations Sewer Utility Fund (572) (876,150)
Water Reclamation Facility #1 Blower and
Digester Piping and Equipment Upgrade Sewer Utility Fund (572) 557,083 Water Reclamation Facility #1 Boiler Design Sewer Utility Fund (572) (557,083) Transfers Total -
Create new Capital Improvement Project, Urban Water Management Plan Update, and transfer total of $75,000 from Lead or Copper Service Line Audit. Operating and Maintenance Project No. 79390.
26 Transfer to Water Reclamation Facility #1 Blower and Digester Piping and Equipment Upgrade, Capital Improvement Project No. UT-2023-08 from Water Reclamation Facility #1 Boiler Design, Capital Improvement Project No. UT-2023-09.
24 Building Evaluation & Maintenance Plan has been completed. Transfer part of the remaining balance from the Building Evaluation & Maintenance Plan, Operating & Maintenance Project No. 78150 to the City Hall Interior Paint Project.
23 Estimated Revenues
Transfers
22 Consolidate active Historic Civic Center projects. Transfer from Historic Civic Center Fountain and Sign, Capital Improvement Project No. FC-2023-07, to Historic Civic Center Facility Capital Improvement, Capital Improvement Project No. FC-2022-08 to combine existing Historic Civic Center Capital Improvement Projects 19 20
21 Border Park has been completed. Transfer part of the remaining balance from the Border Park, Capital Improvement Project No. FC-2025-03 to address Deferred Maintenance Across Multiple Parks.

Border Park has been completed. Transfer part of the remaining balance from the Border Park, Capital Improvement Project No. FC-2025-03 to Resurface Playgrounds.

Building Evaluation & Maintenance Plan has been completed. Transfer part of the remaining balance from the Building Evaluation & Maintenance Plan, Operating & Maintenance Project No. 78150 ($48,830 from the General Fund 110 and $1,170 from the Measure X Fund 120) to the Civic Center Gym Fitness Room Remodel Project. 25 Transfer to Sewer Line Infrastructure, Operating and Maintenance Project No. 71950, from Sewer Main Rehabilitation at Various Locations, Operating and Maintenance Project No. 77840.

City of Corona Page 2 Fiscal Year 2026 Quarter 2 Budgetary Adjustments Page 60 of 447 December 19, 2025
City of Corona
755 Public Safety Way
Corona, CA 92880
To Whom It May Concern:

Coombs-Hopkins Company and its wholly owned aftermarket subsidiary, DC Frost Associates Inc., are the sole and exclusive representative in Southern California for the following equipment manufacturers:
• Alfa Laval, Inc.
o Centrifuge Decanters
o Ashbrook/Simon-Hartley legacy Belt Filter Presses and Gravity Belt Thickeners o Spiral Heat Exchangers
• Ovivo USA
o Ovivo and EIMCO legacy Circular Clarifiers
o Carrousel Oxidation Ditches
o Varec Biogas Safety & Handling Equipment
• Parkson Corporation
o AquaGuard Continuous Filter Element Screens
o RotoShear Internally-Fed Rotary Drum Screens
o RotoGuard Rotary Drum Screens
o DynaSand Sand Filters
• Vulcan Industries
o EWP Headworks Screenings Wash Presses
o ESK Grit Classifiers
If you have any questions or concerns regarding this information, please do not hesitate to contact me. Thank you.

Best Regards,
Casey Rebmann
Plant Sales Engineer, Coombs-Hopkins Company
(760) 931-0555
[email protected]

ORANGE\DDERLETH\55191.2 PTEAM 03102022

CITY OF CORONA

THIRD AMENDMENT TO

MAINTENANCE/GENERAL SERVICES AGREEMENT
WITH AUGUSTINE GENERAL ENGINEERING, INC.
(ON-CALL / EMERGENCY – ESSENTIAL SYSTEMS REPAIR SERVICES FOR POTABLE WATER – RECLAIMED WATER – WASTEWATER – RFP 21-057RH)

1. PARTIES AND DATE.

This Third Amendment to the Maintenance/General Services Agreement (“Third d
of Corona (“City”) and Augustine General Engineering, Inc., a California corporation (“Contractor”). City and Contractor are sometimes individually referred to as “Party” and collectively as “Parties” in this Third Amendment.

2. RECITALS.

2.1 Agreement. City and Contractor entered into that certain Maintenance/General Services Agreement dated June 16, 2021 (“Agreement”), whereby Contractor agreed to provide On-Call / Emergency – Essential Systems Repair Services for Potable Water – Reclaimed Water – Wastewater services.

2.2 Prior Amendments. City and Contractor entered into that certain First Amendment to the Maintenance/General Services Agreement on or about August 8, 2023 (“First Amendment”). City and Contractor entered into that certain Second Amendment to the Maintenance/General Services Agreement on or about July 23, 2025 (“Second Amendment”).

2.3 Amendment. City and Contractor desire to amend the Agreement for the third time to increase the Total Compensation.

3. TERMS.

3.1 Rates & Total Compensation. Section 3.3.1 (Rates & Total Compensation of the Agreement is hereby deleted in its entirety and replaced with the following:
“ 3.3.1 Rates & Total Compensation. Contractor shall
receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit “C-1” attached hereto and incorporated herein by reference.

The total compensation, including authorized reimbursements, shall not exceed Four Hundred Fifty Thousand Dollars ($450,000) per fiscal year (“Total Compensation”) without written approval of City’s Representative. Extra Work may be authorized, as described Docusign Envelope ID: C27021F9-E7D6-494C-A380-0C4A4FE31DFF Amendment”) is made and entered into this ____ day of ________, 2026 by and between the City

2 (BB&K: 9-10)
ORANGE\DDERLETH\55191.2 PTEAM 03102022
below, and if authorized, will be compensated at the rates and manner set forth in this Agreement.”

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

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

3.3 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 Third Amendment.

3.4 Counterparts. This Third 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: C27021F9-E7D6-494C-A380-0C4A4FE31DFF

3 (BB&K: 9-10)
ORANGE\DDERLETH\55191.2 PTEAM 03102022
CITY’S SIGNATURE PAGE
FOR

THIRD AMENDMENT TO

MAINTENANCE/GENERAL SERVICES AGREEMENT
WITH AUGUSTINE GENERAL ENGINEERING, INC.
(ON-CALL / EMERGENCY – ESSENTIAL SYSTEMS REPAIR SERVICES FOR POTABLE WATER – RECLAIMED WATER – WASTEWATER – RFP 21-057RH) IN WITNESS WHEREOF, the Parties have entered into this Third Amendment to Maintenance/General Services Agreement as of the date noted on the first page of the Amendment.

CITY OF CORONA
By: _________________________
Tom Moody
Utilities Director
Reviewed By: _________________________
Katie Hockett
Assistant Utilities Director

Reviewed By: _________________________
Nicole McDaniel
Assistant to the City Manager/Acting Purchasing Manager Docusign Envelope ID: C27021F9-E7D6-494C-A380-0C4A4FE31DFF Attest By: ________________________
City of Corona, CA
Sylvia Edwards, City Clerk

ORANGE\DDERLETH\55191.2 PTEAM 03102022
CONTRACTOR’S SIGNATURE PAGE
FOR

THIRD AMENDMENT TO

MAINTENANCE/GENERAL SERVICES AGREEMENT
WITH AUGUSTINE GENERAL ENGINEERING, INC.
(ON-CALL / EMERGENCY – ESSENTIAL SYSTEMS REPAIR SERVICES FOR POTABLE WATER – RECLAIMED WATER – WASTEWATER – RFP 21-057RH) IN WITNESS WHEREOF, the Parties have entered into this Third Amendment to Maintenance/General Services Agreement as of the date noted on the first page of the Amendment.

AUGUSTINE GENERAL ENGINEERING, INC.
a California corporation
By: _________________________
Michael T. Lowen
CEO & Secretary
Docusign Envelope ID: C27021F9-E7D6-494C-A380-0C4A4FE31DFF

ORANGE\DDERLETH\55191.2 PTEAM 03102022

CITY OF CORONA

FOURTH AMENDMENT TO

MAINTENANCE/GENERAL SERVICES AGREEMENT
WITH W.A. RASIC CONSTRUCTION COMPANY, INC.
(ON-CALL/EMERGENCY-ESSENTIAL SYSTEMS REPAIR SERVICES FOR POTABLE WATER-RECLAIMED WATER-WASTEWATER – RFP 21-057RH)

1. PARTIES AND DATE.

This Fourth Amendment to the Maintenance/General Services Agreement (“Fourth Amendment”) is made and entered into this ____ day of ___________, ______ and between the City of Corona (“City”) and W.A. Rasic Construction Company, Inc., a California corporation (“Contractor”). City and Contractor are sometimes individually referred to as “Party” and collectively as “Parties” in this Fourth Amendment.

2. RECITALS.

2.1 Agreement. City and Contractor entered into that certain Maintenance/General Services Agreement dated June 16, 2021 (“Agreement”), whereby Contractor agreed to provide On-Call/ Emergency - Essential Systems Repair Services for Potable Water - Reclaimed Water - Wastewater services.

2.2 Prior Amendments. City and Contractor entered into that certain First Amendment to the Maintenance/General Services Agreement on or about July 21, 2022 (“First Amendment”). City and Contractor entered into that certain First Amendment to the Maintenance/General Services Agreement on or about August 8, 2023 (“Erroneous First Amendment”). City and Contractor entered into that certain Third Amendment to the Maintenance/General Services Agreement on or about August 21, 2025 (“Third Amendment”).

2.3 Amendment. City and Contractor desire to amend the Agreement for the fourth time to increase Total Compensation to $470,000 per fiscal year ending June 30, 2027.

3. TERMS.

3.1 Rates & Total Compensation. Section 3.3.1 (Rates & Total Compensation) of the Agreement, as amended by the Third Amendment, are hereby deleted in their entirety and replaced with the following:
“3.3.1 Rates & Total Compensation. Contractor shall receive compensation, including authorized reimbursement, for all Services rendered under this agreement at the rates set forth in Exhibit “C-2” attached hereto and incorporated herein by reference. The total compensation, including authorized reimbursements, shall not exceed Four Hundred Seventy Thousand Dollars ($470,000) per fiscal year (“Total Compensation”) without written approval of the City’s Representative. Extra Work may be authorized, as described below, and if Docusign Envelope ID: CC806C5A-B542-4843-9B83-8850625BA63E

2 (BB&K: 9-10)
ORANGE\DDERLETH\55191.2 PTEAM 03102022
authorized, will be compensated at the rates and manner set forth in this Agreement.”

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

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

3.3 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 Fourth Amendment.

3.4 Counterparts. This Fourth 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: CC806C5A-B542-4843-9B83-8850625BA63E

3 (BB&K: 9-10)
ORANGE\DDERLETH\55191.2 PTEAM 03102022
CITY’S SIGNATURE PAGE
FOR

FOURTH AMENDMENT TO

MAINTENANCE/GENERAL SERVICES AGREEMENT
WITH W.A. RASIC CONSTRUCTION COMPANY, INC.
(ON-CALL/EMERGENCY-ESSENTIAL SYSTEMS REPAIR SERVICES FOR POTABLE WATER-RECLAIMED WATER-WASTEWATER – RFP 21-057RH) IN WITNESS WHEREOF, the Parties have entered into this Fourth Amendment to Maintenance/General Services Agreement as of the date noted on the first page of the Amendment.

CITY OF CORONA
By: _________________________
Tom Moody
Utilities Director
Reviewed By: _________________________
Katie Hockett
Assistant Utilities Director
Reviewed By: _________________________
Nicole McDaniels
Assistant to the City Manager/Acting Purchasing Manager Attest By : _________________________
City of Corona, CA
Docusign Envelope ID: CC806C5A-B542-4843-9B83-8850625BA63E Sylvia Edwards, City Clerk

ORANGE\DDERLETH\55191.2 PTEAM 03102022
CONTRACTOR’S SIGNATURE PAGE
FOR

FOURTH AMENDMENT TO

MAINTENANCE/GENERAL SERVICES AGREEMENT
WITH W.A. RASIC CONSTRUCTION COMPANY, INC.
(ON-CALL/EMERGENCY-ESSENTIAL SYSTEMS REPAIR SERVICES FOR POTABLE WATER-RECLAIMED WATER-WASTEWATER – RFP 21-057RH) IN WITNESS WHEREOF, the Parties have entered into this Fourth Amendment to Maintenance/General Services Agreement as of the date noted on the first page of the Amendment.

W.A. RASIC CONSTRUCTION COMPANY, INC.
a California corporation
By: _________________________
Peter Rasic
President
By: _________________________
Walter Rasic
Secretary
Docusign Envelope ID: CC806C5A-B542-4843-9B83-8850625BA63E

ORANGE\DDERLETH\55191.2 PTEAM 03102022

CITY OF CORONA

FIFTH AMENDMENT TO

MAINTENANCE/GENERAL SERVICES AGREEMENT
WITH VALVERDE CONSTRUCTION, INC.
(ON-CALL / EMERGENCY – ESSENTIAL SYSTEMS REPAIR SERVICES FOR POTABLE WATER – RECLAIMED WATER - WASTEWATER – RFP 21-057RH)

1. PARTIES AND DATE.

This Fifth Amendment to the Maintenance/General Services Agreement Fifth Amendment”) is made and entered into this ____ day of__________, 2026 by and between the City of Corona (“City”) and Valverde Construction, Inc., a California 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 Maintenance/General Services Agreement dated July 16, 2021 (“Agreement”), whereby Contractor agreed to provide On-Call/Emergency – Essential Systems Repairs Services for Potable Water – Reclaimed Water – Wastewater services to public clients.

2.2 Prior Amendments. City and Contractor entered into that certain First Amendment to the Maintenance/General Services Agreement on or about July 14, 2022 (“First Amendment”). City and Contractor entered into that certain Second Amendment to the Maintenance/General Services Agreement on or about August 8, 2023 (“Second Amendment”).

City and Contractor entered into that certain Third Amendment to the Maintenance/General Services Agreement on or about June 4, 2024 (“Third Amendment”). City and Contractor entered into that certain Fourth Amendment to the Maintenance/General Services Agreement on or about July 3, 2025 (“Fourth Amendment”).

2.3 Amendment. City and Contractor desire to amend the Agreement for the fifth time to increase the compensation by $175,000 to a total of $395,000 per fiscal year.

3. TERMS.

3.1 Rates & Total Compensation. Section 3.3.1 (Rates & Total Compensation) of the Agreement as amended by the Fourth Amendment is hereby deleted in the entirety and replaced with the following:
“3.3.1 Rates & Total Compensation. Contractor shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit “C-2” attached hereto and incorporated herein by reference. The total compensation, including authorized reimbursements, shall not exceed Docusign Envelope ID: 3A31649F-41C9-480B-AEC3-F13141613E00 Docusign Envelope ID: 3F5AFA76-A59E-4830-9718-E0FD33A0DB26

2 (BB&K: 9-10)
ORANGE\DDERLETH\55191.2 PTEAM 03102022
Three Hundred Ninety-Five Thousand Dollars ($395,000) per fiscal year (“Total Compensation”), 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.”

3.2 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.

3.3 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.

3.4 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: 3A31649F-41C9-480B-AEC3-F13141613E00 Docusign Envelope ID: 3F5AFA76-A59E-4830-9718-E0FD33A0DB26

3 (BB&K: 9-10)
ORANGE\DDERLETH\55191.2 PTEAM 03102022
CITY’S SIGNATURE PAGE
FOR

FIFTH AMENDMENT TO

MAINTENANCE/GENERAL SERVICES AGREEMENT
WITH VALVERDE CONSTRUCTION, INC.
(ON-CALL / EMERGENCY – ESSENTIAL SYSTEMS REPAIR SERVICES FOR POTABLE WATER – RECLAIMED WATER - WASTEWATER – RFP 21-057RH) IN WITNESS WHEREOF, the Parties have entered into this Fifth Amendment to Maintenance/General Services Agreement as of the date noted on the first page of the Amendment.

CITY OF CORONA
By: _________________________
Tom Moody
Utilities Director
Reviewed By: _________________________
Katie Hockett
Assistant Utilities Director
Reviewed By: _________________________
Nicole McDaniel
Assistant to the City Manager/Acting Purchasing Manager

Attest : _________________________
Sylvia Edwards
City Clerk
Docusign Envelope ID: 3A31649F-41C9-480B-AEC3-F13141613E00 Docusign Envelope ID: 3F5AFA76-A59E-4830-9718-E0FD33A0DB26

ORANGE\DDERLETH\55191.2 PTEAM 03102022
CONTRACTOR’S SIGNATURE PAGE
FOR

FIFTH AMENDMENT TO

MAINTENANCE/GENERAL SERVICES AGREEMENT
WITH VALVERDE CONSTRUCTION, INC.
(ON-CALL / EMERGENCY – ESSENTIAL SYSTEMS REPAIR SERVICES FOR POTABLE WATER – RECLAIMED WATER - WASTEWATER – RFP 21-057RH) IN WITNESS WHEREOF, the Parties have entered into this Fifth Amendment to Maintenance/General Services Agreement as of the date noted on the first page of the Amendment.

VALVERDE CONSTRUCTION, INC.
a California corporation
By: _________________________
Edward Valverde
Vice President
By: _________________________
Ahron Valverde
Secretary
Docusign Envelope ID: 3A31649F-41C9-480B-AEC3-F13141613E00 Docusign Envelope ID: 3F5AFA76-A59E-4830-9718-E0FD33A0DB26

ORANGE\DDERLETH\55191.2 PTEAM 03102022

CITY OF CORONA

FOURTH AMENDMENT TO

MAINTENANCE/GENERAL SERVICES AGREEMENT
WITH A & Y ASPHALT CONTRACTORS, INC.
(ASPHALT REPAIR SERVICES – NIB 21-076RH ON-CALL CITYWIDE ASPHALT

REPAIRS)

1. PARTIES AND DATE.

This Fourth Amendment to the Maintenance/General Services Agreement (“Fourth Amendment”) is made and entered into this day of , 2026 by and between the City of Corona (“City”) and A & Y Asphalt Contractors, Inc., a California corporation (“Contractor”). City and Contractor are sometimes individually referred to as “Party” and collectively as “Parties” in this Fourth Amendment.

2. RECITALS.

2.1 Agreement. City and Contractor entered into that certain Maintenance/General Services Agreement dated or about June 29, 2023 (“Agreement”), whereby Contractor agreed to provide asphalt repair services.

2.2 Prior Amendments. City and Contractor entered into that certain First Amendment to the Maintenance/General Services Agreement on or about January 25, 2024 (“First Amendment”). City and Contractor entered into that certain Second Amendment to the Maintenance/General Services Agreement on or about April 3, 2024 (“Second Amendment”).

City and Contractor entered into that certain Third Amendment to the Maintenance/General Services Agreement on or about April 29, 2025 (“Third Amendment”).

2.3 Amendment. City and Contractor desire to amend the Agreement for the fourth time to increase the Total Compensation from $600,000 to $800,000 for the fiscal year ending June 30, 2026, due to increased water and sewer infrastructure repairs, and the Total Compensation will revert back to $600,000 for the fiscal year ending June 30, 2027.

3. TERMS.

3.1 Rates & Total Compensation. Section 3.3.1 (Rates & Total Compensation) of the Agreement, as amended by the Third Amendment, are hereby deleted in their entirety and replaced with the following:
“3.3.1 Rates & Total Compensation. Contractor shall receive compensation, including authorized reimbursements for all Services rendered under this Agreement at the rates set forth in Exhibit “C1” attached hereto and incorporated herein by reference. The total compensation, including authorized reimbursements, shall not exceed Eight Hundred Thousand Dollars ($800,000) per fiscal year ending June 30, 2026 and shall not exceed Six Hundred Docusign Envelope ID: 409ED832-B8DB-44C5-9799-00846DAC14F1 Docusign Envelope ID: A13FE8D2-3E32-4A41-BF01-EF0236D2483F

2 (BB&K: 9-10)
ORANGE\DDERLETH\55191.2 PTEAM 03102022
Thousand Dollars ($600,000) per fiscal year ending June 30, 2027 (“Total Compensation”), 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.”

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

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

3.3 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 Fourth Amendment.

3.4 Counterparts. This Fourth 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: 409ED832-B8DB-44C5-9799-00846DAC14F1 Docusign Envelope ID: A13FE8D2-3E32-4A41-BF01-EF0236D2483F

3 (BB&K: 9-10)
ORANGE\DDERLETH\55191.2 PTEAM 03102022
CITY’S SIGNATURE PAGE
FOR

FOURTH AMENDMENT TO

MAINTENANCE/GENERAL SERVICES AGREEMENT
WITH A & Y ASPHALT CONTRACTORS, INC.
(ASPHALT REPAIR SERVICES – NIB 21-076RH ON-CALL CITYWIDE ASPHALT

REPAIRS)
IN WITNESS WHEREOF, the Parties have entered into this Fourth Amendment to Maintenance/General Services Agreement as of the date noted on the first page of the Amendment.

CITY OF CORONA
By: _________________________
Tom Moody
Utilities Director
Reviewed By: _________________________
Katie Hockett
Assistant Utilities Director
Reviewed By: _________________________
Nicole McDaniel
Assistant to the City Manager/
Acting Purchasing Manager
Attest : _________________________
Sylvia Edwards
City Clerk, City of Corona, California
Docusign Envelope ID: 409ED832-B8DB-44C5-9799-00846DAC14F1 Docusign Envelope ID: A13FE8D2-3E32-4A41-BF01-EF0236D2483F

ORANGE\DDERLETH\55191.2 PTEAM 03102022
CONTRACTOR’S SIGNATURE PAGE
FOR

FOURTH AMENDMENT TO

MAINTENANCE/GENERAL SERVICES AGREEMENT
WITH A & Y ASPHALT CONTRACTORS, INC.
(ASPHALT REPAIR SERVICES – NIB 21-076RH ON-CALL CITYWIDE ASPHALT

REPAIRS)
IN WITNESS WHEREOF, the Parties have entered into this Fourth Amendment to Maintenance/General Services Agreement as of the date noted on the first page of the Amendment.

A & Y ASPHALT CONTRACTORS, INC.
a California corporation
By: _________________________
Elaine Hogan Giese
CEO
By: _________________________
Allen Giese
CFO, Secretary
Docusign Envelope ID: 409ED832-B8DB-44C5-9799-00846DAC14F1 Docusign Envelope ID: A13FE8D2-3E32-4A41-BF01-EF0236D2483F

Vendor Name Description Amount Approval Date Approver (Title) ANIMAL MEDICAL CENTER OF CORONA OFF-SITE VETERINARY SERVICES $120,000.00 12/29/2025 CITY MANAGER

CASTILLO, DAVID POOL/SPLASH PADS

MAINTENANCE AND AS-NEEDED
REPAIR
$100,000.00 10/13/2025

CITY MANAGER

HCI ENVIRONMENTAL AND ENGINEERING FIRE DEPARTMENT LIVE FIRE

TRAINING PROP
$121,320.75 11/12/2025

CITY MANAGER
OCCUPATIONAL SAFETY TRAINING SYSTEM INC EMPLOYEE SAFETY TRAINING $100,000.00 11/12/2025 CITY MANAGER

EUNA SOLUTIONS INC QUESTICA BUDGET SOFTWARE

RENEWAL
$86,604.19 10/14/2025

CITY MANAGER

CINTAS CORP UNIFORM RENTAL, NON-GARMENT

RENTAL, AND LAUNDRY
$100,000.00 10/6/2025

CITY MANAGER
RINCON CONSULTANTS INC ENVIRONMENTAL CONSULTING. $100,000.00 11/19/2025 CITY MANAGER

ROCKWELL ENGINEERING AND AS-NEEDED PUMPS AND MOTORS

FOR VARIOUS UTILITIES FACILITIES
$100,000.00 11/13/2025

CITY MANAGER
Purchases between $75,001-$125,000 Authorized by the City Manager FY 26 Quarter 2 (10/01/2025-12/31/2025)

Vendor Description 2026
Adobe Enterprise Licensing Renewal 150,000.00
CIS Utility Billing System Licensing and Maintenance 278,391.00 Flat rate managed printers for the City Renewal 237,314.00 Atlassian software consulting renewal 83,600.00
AI Permitting Software renewal 100,000.00
Finance Licensing, Maintenance and Support (Transferring to Workday in FY26/27) 146,856.00 Cisco ISE to protect against nefarious activity renewal 150,000.00 Outsourcing of Fire Dispatching to Ontario Fire renewal 599,000.00 Consulting services for cloud, security, Microsoft, and Implementation renewal 80,000.00 Cisco EA Subscription Services (Security) renewal 175,000.00 Cisco Smartnet hardware support renewal 175,000.00
Cisco Incident Response (IR) for security breaches renewal 120,129.00 D 250,000.00
D
Networking equipment (routers,switches,firewalls,wireless) replacement City Hall Datacenter Hardware Replacement 71,476.76
138,000.00
328,717.00
355,000.00
175,100.00
360,000.00
150,000.00
134,756.38
62,087.00
341,258.00
171,000.00
132,000.00
Adobe
Advanced Utility
AIS
ANB
BlitzPermits
CentralSquare
ConvergeOne
City of Ontario
Cloudservus
ConvergeOne
ConvergeOne
ConvergeOne
ConvergeOne
Davenport
Dell
Dell
eSentire
ESRi
Everon
Everon
Everon
Everon
Flock Safety
Flock Safety
Gartner
Laserfiche
4-year replacement cycle for PD Mobile Device Computers(MDC) 4-year replacement cycle for employee computers
Managed Security Operations Center (SOC) service renewal GIS enterprise software renewal
Citywide Unified Camera Project, Phase III
5 year camera and storage replacement cycle
Citywide Badge Access System replacement cycle
Access control and security cameras maintenance and support renewal Flock DFR Program renewal
Flock camera maintence and support
Gartner CIO Team Plus Subscription renewal
Electronic Document Management System (EDMS) renewal 160,000.00 IT Renewal/Replacement Items FY25/26

Microsoft
Microsoft
Microsoft
Nexgen
NV5
Qualtrics

AVI-SPL
Workday
Enterprise Agreement (Windows, Office, Phones, etc) renewal Annual maintenance for Microsoft Azure and running ofserversin the cloud renewal Microsoft Premier Services and Incident Response renewal Enterprise Asset Management System renewal
GIS consulting servicesfor help with large or backlogged projectsrenewal Citizen and employee engagement/survey tool renewal
Council Chambers legacy component upgrades
Recurring costsfor new ERPsystemrenewal
1,062,695.00
850,000.00
245,000.00
211,313.00
150,000.00
175,894.39
341,000.00
669,354.00

DATE: 02/04/2026
TO: Honorable Mayor and City Council Members
FROM: Finance Department
2026-46

REQUEST FOR CITY COUNCIL ACTION

CORONA HOUSING AUTHORITY ACTION

CORONA UTILITY AUTHORITY ACTION
SUBJECT:

FISCAL YEAR 2026 QUARTER 2 BUDGETARY ADJUSTMENTS
EXECUTIVE SUMMARY:

This staff report asks the Council to consider budgetary adjustments for Fiscal Year 2026 based on the Quarter 2 results and staff recommendations for funding level changes. On a quarterly basis, staff presents an update to the City Council on the current fiscal year revenue and expenditures. As part of the process, departments review the operating and capital improvement project funding levels and provide recommendations for budgetary adjustments. For Quarter 2, staff recommends appropriating $9,649,154742,490, increasing estimated revenues by $46,668, and authorizing budget transfers across multiple funds, as noted in Exhibit 1.

RECOMMENDED ACTION:

That the City Council:
a. Appropriate $9,742,490,649,154 increase estimated revenues by $46,668, and authorize budget transfers across multiple funds, as noted in Exhibit 1 - Appropriations, Estimated Revenues, and Transfers.
a.i. Authorize one (1) additional full-time Parks Supervisor position in the Community Services Department and an appropriation and estimated Formatted

revenue increase across multiple funds as noted in Exhibit 1. The total recurring costs for this position are approximately $191,227. b. Approve the Second Amendment to the Professional Services Agreement with RSG, Inc. to increase the total compensation to $282,765. i. Authorize the City Manager, or his designee, to prepare and execute a Second Amendment to the RSG, Inc. Mobilehome Rent Stabilization Ordinance. Professional Services Agreement, bringing the total maximum compensation from $269,265 to $282,765.
ii. Authorize the City Manager, or his designee, to approve non-substantive amendments, including term extensions, to the Second Amendment to the RSG, Inc. Professional Services Agreement so long as any such amendments will not cause the City to exceed the approved total maximum compensation in the Agreement.
c. Approve a Change Order to Increase Dooley Enterprises, Inc., Purchase Order to $150,000.
i. Authorize the City Manager, or his designee, to issue a Change Order to the Dooley Enterprises, Inc. Blanket Purchase Order (B260174) in the amount of $50,000 for a total purchase order of $150,000. ii. Authorize the City Manager, or his designee, to issue annual purchase orders in the amount of $150,000 per fiscal year for the period of July 1, 2026 through June 30, 2030.
d. Approve a Change Order to Increase DC Frost Associates, Inc., Purchase Order to $300,000.
i. Authorize the City Manager, or his designee, to issue a Change Order to the DC Frost Associates, Inc. Blanket Purchase Order (B260570) in the amount of $200,000 for a total purchase order of $300,000. ii. Authorize the City Manager, or his designee, to issue annual purchase orders in subsequent years in the amount of $300,000, as DC Frost Associates, Inc. has been identified as a sole source provider. e. Approve the Fifth Amendment to Maintenance and General Services Agreement with Valverde Construction to increase the total compensation by $175,000 for total of $395,000.
i. Authorize the City Manager, or his designee, to issue a Change Order to the Valverde Construction Blanket Purchase Order (B260507) in the amount of $175,000 for a total purchase order of $395,000. ii. Authorize the City Manager, or his designee, to issue annual purchase orders in the amount of $395,000 through the term of the agreement. f. Approve the Third Amendment to the Maintenance and General Services Agreement with Augustine General Engineering, Inc. to increase the total compensation by $250,000 for total of $450,000.

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i. Authorize the City Manager, or his designee, to issue a Change Order to the Augustine General Engineering, Inc. Blanket Purchase Order (B260446) in the amount of $250,000 for a total purchase order of $450,000.
ii. Authorize the City Manager, or his designee, to issue annual purchase orders in the amount of $450,000 through the term of the agreement. g. Approve the Fourth Amendment to the Maintenance and General Services Agreement with W.A. Rasic Construction Co. to increase the total compensation by $250,000 for a total of $470,000.
i. Authorize the City Manager, or his designee, to issue a Change Order to the W.A. Rasic Construction Co. Blanket Purchase Order (B260629) in the amount of $250,000 for a total purchase order of $470,000. ii. Authorize the City Manager, or his designee, to issue annual purchase orders in the amount of $470,000 through the term of the agreement. h. Approve the Fourth Amendment to the Maintenance and General Services Agreement with A and Y Asphalt Contractors, Inc. to increase the total compensation by $200,000 for a total of $800,000.
i. Authorize the City Manager, or his designee, to issue a Change Order to the A and Y Asphalt Contractors, Inc. Blanket Purchase Order (B260151) in the amount of $200,000 for a total purchase order of $800,000. i. Receive and file the FY 2026, Quarter 2 City Manager Purchases Report. j. 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).
k. Authorize the City Manager, or his designee, to prepare and process any budgetary and cash transfers relating to the issuance of Water and Wastewater Revenue Bonds previously approved at the September 17, 2025 Council Meeting.
l. Authorize the City Manager, or his designee, to issue a purchase order in the amount of $28,160.81 to American Electric Supply for streetlight electrical equipment.
i. Authorize the City Manager, or his designee, to issue a purchase order in the amount of $28,160.81 to American Electric Supply for streetlight electrical equipment.

BACKGROUND & HISTORY:

On a quarterly basis, the Finance Department provides a budget update to the City Council. As part of the quarterly process, departments provide operating and Capital Improvement Project (CIP) adjustments that need to be addressed in the fiscal year (FY).

The Finance Department prepares a consolidated request for the City Council’s consideration.

ANALYSIS:

Item a - Appropriate $9,742,490,649,154 increase estimated revenues by $46,668, and authorize budget transfers across multiple funds as noted in Exhibit 1 - Appropriations, Estimated Revenues, and Transfers.

Appropriations

1. Part Time Seasonal Maintenance Team
Due to ongoing deferred maintenance needs across City parks, staff is requesting the creation of a part-time seasonal maintenance team to supplement existing resources.

The seasonal team will perform deferred park maintenance services from April through October (seven months) each calendar year. Funding for part-time personnel costs for the remainder of the fiscal year is available in the Community Services Department part-time personnel budget.

Staff requests an appropriation in the amount of $51,500 from General Fund 110 to the Community Services operating budget for non-personnel costs, including tools, uniforms, and materials and supplies, which are pro-rated for the remainder of FY 2026. Community Services plans to request three additional part-time positions during the next budget process to fully staff the seasonal maintenance team. Recurring annual costs, part-time personnel and non-personnel, in the amount of $174,600 will be recommended through the annual budget process.

2. North Corona Mall Acquisition/Improvements, Operating and Maintenance Project No. 78390
As the City continues to manage numerous activities at the Corona Mall, additional appropriations are needed to support the North Corona Mall Acquisition/Improvements, Operating and Maintenance Project No. 78390. The requested funding includes $15,800 for appraisal professional services, $100,000 for legal services related to the North Mall acquisition activity, relocation costs in the amount of $157,009, and FF&E payments in the amount of $59,517 associated with the project.

Additionally, staff requests funding in the amount of $335,000 to cover the acquisition costs at the North Mall (141 W. Corona Mall). This acquisition was per the direction of City Council to pursue a wholesale redevelopment of the North Mall and to support the ultimate goal of creating a thriving, vibrant downtown.

Staff requests a total appropriation of $667,326, including $332,326 from the General Fund 110 and $335,000 from the Measure X Fund 120 to the North Corona Mall Acquisition/Improvements, Operating and Maintenance Project No. 78390 to fund all project needs including professional services, relocation, FF&E and redevelopmentrelated costs.

3. Rent Stabilization Contract Amendment with RSG, Inc.

A significant amount of support has been needed from RSG leading up to the December 3, 2025, City Council adoption of the Mobilehome Park Rent Stabilization Ordinance (RSO), especially since the RSO became effective on January 2, 2026. To support the creation of numerous English and Spanish forms that were developed and uploaded to the RSO website, an additional $13,500 is needed to increase the RSG Agreement to $282,765.

Staff requests an appropriation in the amount of $13,500 from the General Fund 110 to the City Manager’s Office operating budget to support the contract increase for RSG, Inc. associated with the creation of additional English and Spanish forms.

4. Parks & Trails Foothill Extension Landscaping
The Parks & Trails Foothill Extension Landscaping Project was allocated $75,000 in the FY 2025 operating budget for the Foothill Extension Infill Planting project. Although the project was completed in FY 2025, not all budgeted funds were spent, and some invoices were received and paid in FY 2026. As the funds were not carried over into FY 2026, a reappropriation of $54,365 is requested from the Measure X Fund 120 to the Community Services operating budget to cover these expenditures, bringing total project spending across the two fiscal years to $73,789.64.

Staff requests an appropriation in the amount of $54,365 from the Measure X Fund 120 to the Community Services operating budget to fund expenditures associated with the Parks & Trails Foothill Extension Landscaping Project.

5. Purchase Dump Truck Trailer to support the EMT
As the Enhanced Maintenance Team (EMT) begins performing citywide maintenance and improvement projects, staff have identified the need for a dump truck trailer to safely and efficiently remove trash, debris, and construction materials generated from city jobs. This equipment will improve productivity, reduce reliance on outside hauling services, and allow EMT staff to complete projects in a timely and cost-effective manner.

Staff requests an appropriation in the amount of $15,500 from the Measure X Fund 120 to the Community Services operating budget to purchase a dump truck trailer to support citywide maintenance and improvement projects.

6. Additional Operating budget for EMT
As the Equipment Maintenance Team (EMT) works on citywide maintenance and improvement projects for the remainder of FY 2026, additional operating budget is needed to support ongoing work. The requested funding includes $7,500 for construction materials, $2,500 for equipment, $5,000 for maintenance and repair, $5,000 for professional services, and $3,160 to support personnel needs such as uniforms, safety shoes, and office supplies. These resources will ensure projects are completed safely, efficiently, and on schedule.

Construction Materials/Equipment (Non-CIP): Construction materials/equipment associated with non-CIP projects that are requested by Community Services or other departments when no specific project funding has been identified. These are typically smaller operational projects such as minor interior modifications, building reconfigurations, installation of fixtures or casework, accessibility adjustments, or quick turn improvements needed to support operations, programs, or safety. Having this funding available allows the EMT to address these requests efficiently without delaying work while separate funding is identified.

Maintenance & Repair (Non-CIP): This account would be used when EMT is assigned a non-CIP project that requires specialized vendor support beyond what can be completed in house. Examples include limited electrical, plumbing, welding, specialty fabrication, or system troubleshooting needed to complete a project EMT is leading.

This provides a mechanism to supplement staff work, resolve unforeseen conditions, and keep small projects moving forward without having to elevate them to full CIP status.

Professional/Contract Services (Non-CIP): This funding would cover professional services such as minor design assistance, drafting, engineering input, or technical drawings for projects that are not formally attached to a CIP. These are typically projects where a simple set of plans, calculations, or design concepts are needed to validate scope, pricing, constructability, or code compliance before EMT can proceed.

Staff requests an appropriation in the amount of $23,160 from Measure X Fund 120 to the Community Services operating budget to fund these additional operating needs for EMT through the remainder of FY 2026.

7. Additional/Separate report for Asbestos
The original scope of work included a single report covering both buildings: 725 Main and 122 E. 6th Street. During project review, the team determined it was necessary to prepare two separate reports and conduct a 400-point sample analysis. The vinyl floor tile in the 725 Main building (the former 99 Cents store) is also classified as damaged asbestos-containing material (ACM), which must be addressed with a Procedure 5 work plan.

Staff requests an appropriation in the amount of $3,800 from Measure X Fund 120 to the South Corona Mall Acquisition/Improvements, Operating and Maintenance Project No. 79320 for additional funds needed to prepare separate asbestos reports.

8. Purchase of Dual Sport Motorcycles for Temescal Valley Area To support public safety and community policing in the Temescal Valley area, staff is requesting funding for two (2) 2025 Honda CRF450RL Police Edition dual-sport motorcycles. E-bikes and e-motorcycles are frequently operated by untrained riders, including juveniles, often in violation of traffic laws on sidewalks, trails, and residential areas. These challenges are particularly evident in south Corona, where expanding neighborhoods, open-space trails, parks, and commercial corridors have led to increased complaints and calls for service.

The Honda CRF450RL Police Edition dual-sport motorcycles are designed for hybrid deployment, enabling officers to operate on roadways and off-road trails, parks, and open spaces. They will be stored at the Temescal Public Safety Facility and primarily deployed within the south Corona/Temescal Valley area to enhance enforcement, increase police visibility, and improve response times.

Staff requests an appropriation in the amount of $36,573 from the Temescal Canyon Police Facilities Fund 208 to the Vehicle Procurement-Police, Operating and Maintenance Project No. 68341 to purchase motorcycles. The motorcycles will not be included in the City’s motor pool program and will be maintained as on-account units, with maintenance and repair costs charged directly to the department on an asneeded basis.

9. Electric Utility Cost for CFD 2018-2
The City recently assumed responsibility for the electric utility costs associated with Community Facilities District (CFD) 2018-2, which average approximately $150 per month. These costs are necessary to support ongoing operations within the district and will be incorporated into the City’s regular budget in future fiscal years.

Staff requests an appropriation in the amount of $1,800 from CFD 2018-2 Special Tax B Sierra Bella Fund 237 to the Community Services Department operating budget to cover the current fiscal year expense.

10.Additional Landscape Trimming for various CFD
As seasonal growth increases during the spring and summer months, additional landscape trimming is needed to maintain the appearance and overall condition of CFDs 2001-1 and 97-1, as well as LMD 84-2, Zone 14. These services will allow staff to address deferred aesthetic improvements, enhance curb appeal, and uphold a high standard of presentation for public spaces, supported by the healthy fund balances in each account.

Staff requests a total appropriation of $10,600, including $400 from CFD 97-1 Landscape Maintenance Fund 248, $2,200 from CFD/LMD 2001-1 Landscape Maintenance Fund 249, and $8,000 from LMD 84-2 Zone 14 Landscape Maintenance Fund 461 to the Community Services Department operating budget to support additional landscape trimming service for various CFD areas.

11.Transition of CFD 2016-3 Zone 26 Landscaping and Utility Services As maintenance responsibilities transition from the developer to the City, CFD 2016- 3 Zone 26 will require City-funded landscaping and utility services beginning in February 2026. The City will contract with Integrity Arborist to provide landscaping services at a monthly cost of $505.57, plus on-call services as needed, and will also assume recycled water and electricity costs for the area. The requested appropriations will cover these expenses for the remainder of FY 2026, with ongoing costs to be incorporated into future budgets.

Staff requests an appropriation in the amount of $4,750 from the CFD 2016-3 Zone 26 Fund 272 to the Community Services operating budget to fund landscaping and utility services transitioning to the City. This amount includes $2,600 for landscaping services and $2,150 for utility services.

12.Second Street Family and Multifamily Affordable Housing Project Following prior City Council action, funds to support the Second Street Multifamily 115-unit affordable housing project were appropriated in FY 2025 and were supposed to be carried into FY 2026, but were left off the carryover list. Further, on August 20, 2025, City Council took additional action to approve a First Amended and Restated Affordable Housing Disposition and Development Agreement and to reaffirm the City’s $14,096,871.15 financial investment in the project which included a $7,535,280 LowModerate Income Housing Asset Loan and a $531,591.15 Federal HOME ARP Loan as well as a $4,030,000 Land Acquisition Loan and a $2,000,000 Impact fee Loan.

Staff requests an appropriation in the amount of $7,535,280 from Corona Housing Authority Fund 291 to the City Manager’s Office operating budget to support Second Street Family and Multifamily Affordable Housing Project.

13.Waterline at Sherman Avenue
The Waterline at Sherman Avenue project will replace approximately 2,400 linear feet of existing 8-inch and 10-inch asbestos cement pipe (ACP) and steel waterline along Sherman Avenue with approximately 2,400 linear feet of 12-inch ductile iron pipe (DIP). The existing waterline was installed between 1957 and 1963 and has a documented history of leaks. Replacement is necessary to improve system reliability.

Staff requests an appropriation of $432,000 from the 2025 Water Revenue Bonds Fund 512 to the Waterline Replacement at Sherman Avenue, Capital Improvement Project No. UT-2027-01, to fund administrative and design costs. Construction funding will be requested once the design has been completed.

14.USACE License for Potholing and Soil Testing in the Prado Flood Control Basin The Butterfield Drive Reclaimed Water Flow Control Station Project involves the construction of a dedicated flow control station designed to deliver reclaimed water from the Western Riverside County Regional Wastewater Authority (WRCRWA) Treatment Plant into the City’s reclaim water distribution system. This project supports the City’s efforts to reduce reliance on imported water and improve local water supplies. Completion of the project design requires potholing and soil testing, which requires a license from the United States Army Corps of Engineers (USACE). The project is partially funded by Title XVI Water Reclamation and Reuse Program administered by the United States Bureau of Reclamation, which reimburses 25 percent of eligible project costs. The remaining 75 percent of design and construction costs are funded through a Cooperative Agreement with the Riverside County Flood Control and Water Conservation District. However, costs associated with obtaining the USACE license are ineligible for reimbursement or cost-match, as federal grant funds cannot be used to pay another federal agency.

Staff requests an appropriation in the amount of $50,000 from the Reclaimed Water Utility Fund 567 to the Butterfield Drive Reclaimed Water Flow Control StationIneligible, Capital Improvement Project No. UT-2023-03, to cover the administrative costs charged by USACE for the review and issuance of the required license to perform potholing and soil testing within the Prado Flood Control Basin.

15.Waterline Infrastructure
The Utilities Department (UD) Below Ground Maintenance division is responsible for the maintenance of approximately 740 miles of potable and reclaimed waterlines. UD uses both in-house staff and contractors to replace mainlines and repair ruptured or leaking water lines. During the current fiscal year, UD has experienced a significant increase in main breaks and required repairs, resulting in greater reliance on contractors. Repairs include both emergency responses and proactive maintenance.

Proactive maintenance is identified through AI technology or when infrastructure exhibits frequent leaks or deterioration due to age. UD also collaborates with the Public Works Department to coordinate repairs in areas scheduled for paving projects, maximizing efficiency and reducing costs.

To address the increased workload and maintain system reliability, UD requests an appropriation in the amount of $625,000 from the Water Utility Fund 570 to the Waterline Infrastructure, Operating and Maintenance Project No. 71930, to complete the necessary maintenance work through the end of the fiscal year.

16.Greenfield Electric Utility Arc Flash Study
UD completed an Arc Flash study for all Water and Sewer electrical facilities in 2024.

At that time, the Greenfield Electric Utility Arc Flash Study was put on hold in order to obtain additional information from Southern California Edison (SCE) related to the Wholesale Distribution Access Tariff (WDAT) connection points. SCE recently provided the short circuit data required to complete the study, allowing UD to move forward with the Greenfield Arc Flash Study. The purpose of the arc flash study is to enhance the safety of UD’s facilities by identifying electrical hazards and implementing necessary safety measures in compliance with National Fire Protection Association (NFPA) 70E. Arc flash ratings are a measure of the potential danger faced by operating electrical equipment. A higher rating means more personal protective equipment (PPE) is required. This study evaluates and reduces the arc flash rating to minimize the danger to staff and contractors for all electric utility facilities and equipment, including medium voltage switchgear, circuit breakers, pad-mounted switches, vault-mounted switches, and service transformers.

Staff requests an appropriation in the amount of $34,000 from the Greenfield Electric Utility Fund 578 to the Arc Flash Study, Operating and Maintenance Project No. 76280, to complete the Arc Flash Study for the Greenfield electric utility facilities.

17.Police Department Patrol Vehicle Unit #79352 replacement Corona Police Department marked patrol vehicle Unit #79352 sustained extensive damage during a traffic collision. Following inspection by the City’s Fleet Services, the vehicle was determined to be a total loss and cannot be repaired. In accordance with Administrative Policy No. 09100.508, which governs vehicle replacement based on age, mileage, dependability, safety, and excessive maintenance costs, staff is requesting funding to replace the existing unit.

The City’s standard practice for patrol vehicle replacement includes both the purchase of the vehicle and the required upfitting, which typically consists of communications equipment (Motorola radios), lighting systems, computer mounts, gun racks, storage, and other modifications necessary to support Police Department operations. The replacement vehicle is essential to the Corona Police Department’s daily operational effectiveness and ensures continued compliance with applicable labor group Memorandum of Understanding (MOU) agreements, as personnel assigned to special assignments require the use of unmarked vehicles.

Staff requests an appropriation in the amount of $90,000 from Vehicle Replacement Fund 684 to the Vehicle Procurement–Police, Operating and Maintenance Project No. 68341 to replace Patrol Vehicle Unit #79352. As this request is for the replacement of an existing patrol vehicle, funding is appropriately requested from the Vehicle Replacement Fund.

18.One (1) additional Parks Supervisor full-time position

The Community Services Department is requesting approval to create a second Parks Supervisor position to maintain service quality as our parks and landscape system grows in scale and complexity. This second supervisor will help clearly divide supervisory responsibilities between park assets and citywide landscape areas and help advance maintenance and service goals outlined in the Parks and Recreation Master Plan.

A second supervisor will increase day-to-day coverage for inspections, work orders, safety/compliance, scheduling, and staff development, and allow each supervisor to be present in the field and responsive to the public. Splitting responsibilities also creates focused oversight by allowing the supervisor responsible for parks to focus on playgrounds, athletic fields, park restrooms, and park facilities, and the supervisor responsible for landscape areas to focus on medians, streetscapes, facility grounds, tree care, and vendor contract management. This division mirrors the operational realities of park vs. landscape work and formalizes a structure previously anticipated in departmental work plans.

By creating a second Parks Supervisor position, staff expects to provide higher and more consistent service levels across parks and landscape areas, clear lines of responsibility that improve decision-making, training, and accountability, and stronger contract compliance and customer satisfaction in landscaped areas.

Staff requests an appropriation in the amount of $46,668 across various LMD/CFD funds (as noted below) and an appropriation and estimated revenue increase by the same amount in the General Fund. No additional costs to the General Fund – the districts that benefit will cover the expenses.

Fund Amount
CFD 2018-1 Special Tax B (Bedford) Fund (236) 926.00
CFD 2018-2 Special Tax B Sierra B Fund (237) 2,085.00
CFD 2017-2 Valencia Spec Tax B Fund (238) 234.00
CFD 2002-2 Landscape Maint Fund (247) 356.00
CFD 97-1 Landscape Maint Fund (248) 1,123.00
CFD/LMD 2001-1 Landscape Maint Fund (249) 4,093.00
CFD 2002-3 Landscape Maint Fund (251) 166.00
CFD 2011-1 Landscape/Lighting Fund (253) 448.00
CFD 2016-2 Terrassa Spec Tax B Fund (255) 99.00
CFD 2016-3 Zone-2 Boardwalk Fund (257) 314.00
CFD 2016-3 Zone 17 Corona Med Ctr Fund (263) 7.00
CFD 2016-3 Zone 19 Cresta/Promenade Fund (265) 101.00
CFD 2016-3 Zone 26 Tm 36605/36608 Fund (272) 123.00
CFD 2016-3 Zone 15 Northpoint Fund (287) 2.00
CFD 2016-3 Zone 6 TM31373 Fund (294) 209.00
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Fund Amount
LMD 84-2 Zone 4 Landscape Maint Fund (456) 545.00
LMD 84-2 Zone 6 Landscape Maint Fund (457) 262.00
LMD 84-2 Zone 7 Landscape Maint Fund (458) 329.00
LMD 84-2 Zone 10 Landscape Maint Fund (460) 22,305.00
LMD 84-2 Zone 14 Landscape Maint Fund (461) 4,113.00
LMD 84-2 Zone 15 Landscape Maint Fund (462) 372.00
LMD 84-2 Zone 17 Landscape Maint Fund (463) 169.00
LMD 84-2 Zone 18 Landscape Maint Fund (464) 72.00
LMD 84-2 Zone 19 Landscape Maint Fund (468) 479.00
LMD 84-2 Zone 20 Landscape Maint Fund (470) 7,674.00
LMD 84-2 Zone 1 Landscape Maint Fund (471) 62.00
Total 46,668.00
Transfers

18.19. Budgetary transfer in the amount of $135,000 from the Border Park, Capital Improvement Project No. FC-2025-03 to the Community Services Department operating budget within the General Fund 110 for deferred park maintenance.

A budgetary transfer in the amount of $135,000 from the Border Park, Capital Improvement Project No. FC-2025-03, is requested to support deferred maintenance across multiple parks. The Border Park project is complete and has a remaining balance of $349,000. Additional funding will be transferred to other projects as noted on item 19 below, and the rest will be returned to fund balance.

Proposed improvements include installing decomposed granite tree rings at Butterfield Dog Park in high-traffic areas where turf is difficult to grow and maintain ($10,000); repairing fences and installing new bleachers at Santana Park baseball fields and dugouts ($50,000); and replenishing playground chips at Buena Vista, Chase, Eagle Glen, Husted, Kellogg, Ontario, and Promenade Parks ($75,000).

19.20. Budgetary transfer in the amount of $72,000 from the Border Park, Capital Improvement Project No. FC-2025-03 to the Community Services Department operating budget within General Fund 110 for playground resurfacing.

A budgetary transfer in the amount of $72,000 from the Border Park, Capital Improvement Project No. FC-2025-03, is requested for playground resurfacing at El Cerrito ($55,000) and Eagle Glen ($17,000) Parks to address wear and deterioration and ensure continued compliance with safety and accessibility standards. Resurfacing these playgrounds will reduce fall hazards, extend the life of existing equipment, and provide a safer, more inclusive play environment for families and children in the community.

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20.21. Budgetary transfer in the amount of $50,000 ($48,830 from the General Fund 110 and $1,170 from the Measure X Fund 120) from the Building Evaluation and Maintenance Plan, Operating & Maintenance Project No. 78150 to the Community Services Department operating budget to remodel the Historic Civic Center Gym Fitness Room.

A budgetary transfer in the amount of $50,000 from the Building Evaluation and Maintenance Plan, Operating & Maintenance Project No. 78150 is requested to remodel the Fitness Room at the Historic Civic Center Gym to accommodate programs being relocated from the Circle City Center. The remodel will ensure that these programs can continue operating without disruption and provide a functional, updated space for community fitness activities.

21.22. Budgetary transfer in the amount of $181,370 from the Historic Civic Center Fountain and Sign, Capital Improvement Project No. FC-2023-07, to Historic Civic Center Facility Capital Improvement, Capital Improvement Project No. FC-2022-08 within Measure X Fund 120.

A budgetary transfer in the amount of $181,370 from Historic Civic Center Fountain and Sign, Capital Improvement Project No. FC-2023-07, to Historic Civic Center Facility Capital Improvement, Capital Improvement Project No. FC-2022-08, is requested to combine existing Historic Civic Center Capital Projects into a single project to streamline project management and budgeting while maintaining focus on facility maintenance.

22.23. Budgetary transfer in the amount of $160,000 from the Building Evaluation and Maintenance Plan, Operating & Maintenance Project No. 78150 to a new Operating & Maintenance Project titled, City Hall Interior Paint, within the Measure X Fund 120.

Budgetary transfer in the amount of $160,000 from the Building Evaluation and Maintenance Plan, Operating & Maintenance Project No. 78150 is requested for painting the interior of City Hall in areas where carpet is being replaced. Painting will be completed prior to carpet installation.

23.24. Budgetary transfer in the amount of $75,000 from the Lead or Copper Service Line Audit, Operating and Maintenance Project No. 79390, to create and fund an Operating and Maintenance Project titled Urban Water Management Plan Update within the Water Utility Fund 570.

The Urban Water Management Plan (UWMP) is a state-mandated planning document that California urban water suppliers delivering 3,000 acre-feet of water or more annually, or serving 3,000 or more urban connections, are required to prepare every five years and submit to the California Department of Water Resources (DWR). The UWMP supports long-term water resource planning by demonstrating how adequate

water supplies will be available to meet existing and projected demands. The plan evaluates the reliability of water sources over a 20-year planning horizon and includes water demand management measures and water shortage contingency planning. The 2020 UWMP was completed in conjunction with the Potable Water Master Plan project. A separate operating and maintenance project is requested to manage and complete the 2025 UWMP update.

Staff requests a budgetary transfer in the amount of $75,000 from the Lead or Copper Service Line Audit, Operating and Maintenance Project No. 79390, to create and fund a new Operating and Maintenance Project titled Urban Water Management Plan Update within the Water Utility Fund 570. Project No. 79390 has available savings, and both projects are within the same fund and project category.

24.25. Budgetary transfer in the amount of $876,150 from the Sewer Main Rehabilitation at Various Locations, Operating and Maintenance Project No. 77840, to the Sewer Line Infrastructure, Operating and Maintenance Project No. 71950 within the Sewer Utility Fund 572.

Operating and Maintenance Project No. 77840 Sewer Main Rehabilitation at Various Locations and Operating and Maintenance Project No. 71950 Sewer Line Infrastructure both support the repair and rehabilitation of the City’s sewer collection system. While O&M Project No. 77840 addresses sewer main deficiencies identified through CCTV inspections to prevent emergency failures, O&M Project No. 71950 focuses on routine sewer line maintenance and repairs identified through preventative maintenance and customer reports. Both projects share the goal of maintaining system reliability, preventing sanitary sewer overflows, and minimizing long-term repair costs.

Staff requests a budgetary transfer in the amount of $876,150 from the Sewer Main Rehabilitation at Various Locations, Operating and Maintenance Project No. 77840, to the Sewer Line Infrastructure, Operating and Maintenance Project No. 71950 within the Sewer Utility Fund 572 to consolidate these projects in order to streamline administration and provide greater flexibility in addressing sewer infrastructure needs.

25.26. Budgetary transfer in the amount of $557,083 from the Water Reclamation Facility #1 Boiler Design, Capital Improvement Project No. UT-2023-09, to the Water Reclamation Facility #1 Blower and Digester Piping and Equipment Upgrade, Capital Improvement Project No. UT-2023-08 within the Sewer Utility Fund 572.

The Water Reclamation Facility No. 1 Blower and Digester Piping and Equipment Upgrade project is designed to replace and upgrade the existing motor control centers in the primary gallery and blower room, replace obsolete mechanical and electrical equipment, and install a new Digester 3 mixing system. These improvements will enhance operational efficiency for Digesters 1, 2, and 3. The Boiler Project aims to install a redundant boiler to maintain optimum temperature for the three digesters, ensuring reliable and efficient operation. The two projects are closely related and

share overlapping construction areas within Water Reclamation Facility No. 1. Staff has determined that combining them into a single capital improvement project will improve project management and tracking, enable concurrent construction, reduce overall project duration, and achieve cost savings and efficiencies through coordinated efforts.

Staff requests a budgetary transfer in the amount of $557,083 from the Water Reclamation Facility No. 1 Boiler Project, Capital Improvement Project No. UT-2023- 09, to the Water Reclamation Facility No. 1 Blower and Digester Piping and Equipment Upgrade, Capital Improvement Project No. UT-2023-08 within the Sewer Utility Fund 572, to combine the projects and achieve overall efficiency.

Item b. Approve the Second Amendment to Professional Services Agreement with RSG Inc. to increase the total compensation to $282,765.

On February 21, 2024, the City of Corona entered into a Professional Services Agreement with RSG, Inc. for the creation and implementation of a Mobilehome Rent Stabilization Ordinance (RSO) for a total of $269,265. The initial term of the agreement was from January 1, 2024 to January 1, 2026.

On September 17, 2025, a no-cost First Amendment to the Agreement with RSG, Inc. was executed to extend the term of the Agreement to January 1, 2027. The no-cost term extension was processed to ensure there was no gap in support from RSG and with plans for full expenditure of the balance of contract funds by June 30, 2026 or sooner.

A significant amount of support has been needed from RSG leading up to the December 3, 2025 City Council adoption of the Mobilehome Park Rent Stabilization Ordinance (RSO), especially since the RSO became effective on January 2, 2026. To support the creation of numerous English and Spanish forms that were developed and uploaded to the RSO website, an additional $13,500 is needed to increase the RSG Agreement to $282,765.

The $282,765 Agreement with RSG, Inc. essentially will provide complex technical support to the City of Corona from February 21, 2024 through June 30, 2026, at which time, the funds will be exhausted.

Item c. Approve the change order to Increase Dooley Enterprises, Inc., Purchase Order to $150,000.

The Police Department (PD) utilizes funds allocated to Dooley Enterprises for the procurement of ammunition required for officer training, quarterly firearms qualifications, annual duty ammunition replacement, and supplemental/advanced law enforcement firearms training. Dooley Enterprises is the official authorized law enforcement distributor for Winchester ammunition in California and several other states, and the City has a longstanding relationship with this vendor due to their

reliability and ability to meet the department’s needs, including cost savings from direct pickup and proven product performance. An increased demand, limited supply, and long lead times for ammunition orders (up to nine months). The department’s justification for additional funds is to replenish depleted stock, maintain adequate surplus for ongoing and advanced training, and ensure compliance with POST (Peace Officer Standards and Training) requirements.

The City Council previously approved an annual budget allocation of $150,000 for purchases from Dooley Enterprises through the standard budget process. This amount was established based on prior year expenditures and anticipated needs at the time of budget adoption. The staff requests authorization to increase total compensation by $50,000 for a total purchase order of $150,000 for B260174.

Item d. Approve the change order to Increase DC Frost Associates, Inc., Purchase Order to $200,000.

The Utilities Department maintains sewer treatment equipment from manufacturers including Parkson, Gorman-Rupp, and Vulcan at Water Reclamation Facilities Nos. 1, 2, and 3, as listed on PCC 3400 Exclusive Standard Specifications. These assets require ongoing preventive maintenance and the availability of standardized replacement parts to ensure reliable operation. To support both timely repairs and the ability to stock critical spare parts in the City’s warehouse for emergency and preventive maintenance needs, the required parts and related services are available only through DC Frost Associates, Inc., the sole authorized regional representative.

Staff requests City Council approval to issue an annual purchase order to DC Frost Associates, Inc. for a not-to-exceed amount of $300,000 per fiscal year in FY26 and subsequent years for as-needed standardized equipment parts in accordance with Corona Municipal Code Section 3.08.140(B). The staff requests authorization to increase total compensation by $200,000 for a total purchase order of $300,000 for B260570.

Items e - h. Approve the Amendments to the Maintenance and General Services Agreement with Various Essential System Repair and Asphalt Repair Contractors The Utilities Department (UD) Below Ground Maintenance division is responsible for the maintenance of approximately 740 miles of potable and reclaimed waterlines and 470 miles of sewer lines throughout the City. UD uses both in-house staff and contractors to install mainlines and repair ruptured or leaking water and sewer lines.

During the current fiscal year, UD has experienced a significant increase in main breaks and required repairs, resulting in greater reliance on contractors. Repairs include both emergency responses and proactive maintenance. Proactive maintenance is identified through AI technology, CCTV inspections, or when infrastructure exhibits frequent leaks or deterioration due to age. UD also collaborates with the Public Works Department to coordinate repairs in areas scheduled for paving projects, maximizing efficiency and reducing costs. To address the increased workload and maintain system reliability, UD requests the following actions:

e. Approve the Fifth Amendment to Maintenance and General Services Agreement with Valverde Construction to increase the total compensation by $175,000 for total of $395,000.
f. Approve the Third Amendment to the Maintenance and General Services Agreement with Augustine General Engineering, Inc. to increase the total compensation by $250,000 for total of $470,000.
g. Approve the Fourth Amendment to the Maintenance and General Services Agreement with W.A. Rasic Construction Co. to increase the total compensation by $250,000 for a total of $470,000.
h. Approve the Fourth Amendment to the Maintenance and General Services Agreement with A and Y Asphalt Contractors, Inc. to increase the total compensation by $200,000 for a total of $800,000.

Item i. Receive and file the FY 2026, Quarter 2 City Manager Purchases Report.

At the meeting of August 20, 2025, the City Council approved an ordinance making changes to the Corona Municipal Code CMC relative to the City’s purchasing and procurement policies. Part of those changes included a provision to provide the City Council a quarterly report summarizing the instances during the preceding quarter wherein the City Manager exercised his purchasing authority. Specifically, section

3.08.040(M) of the CMC reads as follows: “Quarterly Reporting ($75,001 to $125,000 Purchases). No less often than quarterly, a written report shall be presented to the City Council which lists purchases, contracts or agreements authorized by the City Manager, or his or her designee, between $75,001 to $125,000. The report shall include the dollar amount, date, approving employee title, brief description of services or items purchased, and the vendor, contractor or other entity.” The attached report includes this information for Fiscal Year 2026, quarter two.

Item j. 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).

The list was previously approved on June 4, 2025, at the time of the FY 2026 budget adoption and once again on November 5, 2025, during the Quarter 1 Budget Update.

However, the list is now being brought forth for Council approval once again to clearly identify the vendors listed for each of the renewal and replacement services. All dollar amounts remain the same as approved on November 5, 2025.

The City relies on a diverse array of software and hardware solutions to maintain essential operations. To streamline the procurement process and eliminate the need

for repeated City Council approvals for routine annual renewals and necessary replacements of existing software and hardware, staff recommends approving the attached comprehensive list of items exceeding $55,000. This consolidated approach enhances efficiency, maximizes cost savings, and ensures uninterrupted service by facilitating timely renewals and replacements without requiring ongoing Council review for each item. This practice aligns with common municipal procedures across California, where cities such as Murrieta employ similar bulk approval mechanisms for annual technology maintenance agreements, subscriptions, and replacements to ensure operational continuity and procurement efficiency. Additionally, the City leverages cooperative purchasing agreements, such as those offered through GSA and NASPO, when available, to secure the most competitive pricing and optimize cost savings for these renewals and replacements.

The City's ability to maintain operational continuity depends on ongoing annual maintenance payments or subscriptions for software and hardware, as well as periodic replacements to ensure systems remain functional and up-to-date. Many vendors are the sole providers of support and replacement components for their proprietary products, including software, hardware, and related professional services.

Furthermore, due to stringent security requirements for credit card processing and online payment gateways, financial software vendors often maintain exclusive partnerships with specific third-party providers. These partnerships ensure compliance with certifications and evolving security standards, effectively designating those providers as sole sources for the associated applications and hardware.

Item k. Authorize the City Manager, or his designee, to prepare and process any budgetary and cash transfers relating to the issuance of Water and Wastewater Revenue Bonds previously approved at the September 17, 2025 Council Meeting.

At the September 17, 2025 Council Meeting, Resolution No. 2025-001 and 2025-002 were adopted which authorized the issuance of Water Revenue Bonds and Wastewater Revenue Bonds, respectively. Bonds proceeds are to be allocated to finance a portion of the costs for various Water and Wastewater capital improvements projects. Though both resolutions were adopted, the staff report did not explicitly provide any authority to appropriate those projects with the bond proceeds. Staff is now requesting that the City Council provide the City Manager, or his designee, the authority to prepare and process any budgetary and cash transfers relating to the issuance of both Water Revenue and Wastewater Revenue Bonds.

Item l. Authorize the City Manager, or his designee, to issue a purchase order in the amount of $28,160.81 to American Electric Supply for streetlight electrical equipment.

The Warehouse stocks electrical equipment necessary to make repairs to the City’s streetlights. When soliciting to replenish warehouse supplies, staff contacts vendors for quotes and issues a PO to the lowest responsive, responsible bidder, pursuant to the Corona Municipal Code (CMC). Specific to street light poles, Warehouse staff followed this process twice thus far this Fiscal Year and issued two POs to American

Electric Supply, together totaling $105,721.95. The Warehouse now needs to replenish street light cobra heads fixtures and nodes as there are none in stock. Staff solicited three vendors for the equipment and again received the lowest quote from American Electric Supply in the amount of $28,160.81. However, with this third purchase, the total compensation to this vendor for the Fiscal Year will be $133,852.76. Pursuant to the CMC, expenditures exceeding $125,000 require City Council approval. Therefore, staff is requesting that the City Council authorize the City Manager, or his designee, to issue a purchase order in the amount of $28,160.81 to American Electric Supply to replenish street light electrical equipment, and authorize the City Manager, or his designee, to approve any documents necessary to implement any change order up to 10% of the purchase order amount, or $2,816.10, as authorized by CMC section 3.08.080(J).

FINANCIAL IMPACT:

Approval of recommended action a will have financial impacts as noted below. There is sufficient fund balance or working capital available in each of the respective funds for approval of the recommended actions.

Fund # Fund Appropriations
Estimated
Revenue
Increase Net Impact
110 General Fund (110)

443,994

46,668

397,326
120 Measure X Fund (120)

431,825

-

431,825
208
Temescal Canyon Police Facilities Fund
(208)

36,573

-

36,573
236
CFD 2018-1 Special Tax B (Bedford) Fund
(236)

926

-

926
237
CFD 2018-2 Special Tax B Sierra B Fund
(237)

3,885

-

3,885
238
CFD 2017-2 Valencia Spec Tax B Fund
(238)

234

-

234
247 CFD 2002-2 Landscape Maint Fund (247)

356

-

356
248 CFD 97-1 Landscape Maint Fund (248)

1,523

-

1,523
249
CFD/LMD 2001-1 Landscape Maint Fund
(249)

6,293

-

6,293
251 CFD 2002-3 Landscape Maint Fund (251)

166

-

166
253 CFD 2011-1 Landscape/Lighting Fund (253)

448

-

448
255
CFD 2016-2 Terrassa Spec Tax B Fund
(255)

99 -

99 257 CFD 2016-3 Zone-2 Boardwalk Fund (257)

314

-

314
263
CFD 2016-3 Zone 17 Corona Med Ctr Fund
(263)

7 -

7 265
CFD 2016-3 Zone 19 Cresta/Promenade
Fund (265)

101

-

101
272
CFD 2016-3 Zone 26 Tm 36605/36608
Fund (272)

4,873

-

4,873
287 CFD 2016-3 Zone 15 Northpoint Fund (287)

2 -

2 291 Corona Housing Authority Fund (291)

7,535,280

-

7,535,280
294 CFD 2016-3 Zone 6 Tm31373 Fund (294)

209

-

209
456
LMD 84-2 Zone 4 Landscape Maint Fund
(456)

545

-

545
457
LMD 84-2 Zone 6 Landscape Maint Fund
(457)

262

-

262
458
LMD 84-2 Zone 7 Landscape Maint Fund
(458)

329

-

329
460
LMD 84-2 Zone 10 Landscape Maint Fund
(460)

22,305

-

22,305
461
LMD 84-2 Zone 14 Landscape Maint Fund
(461)

12,113

-

12,113
462
LMD 84-2 Zone 15 Landscape Maint Fund
(462)

372

-

372
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463
LMD 84-2 Zone 17 Landscape Maint Fund
(463)

169

-

169
464
LMD 84-2 Zone 18 Landscape Maint Fund
(464)

72 -

72 468
LMD 84-2 Zone 19 Landscape Maint Fund
(468)

479

-

479
470
LMD 84-2 Zone 20 Landscape Maint Fund
(470)

7,674

-

7,674
471
LMD 84-2 Zone 1 Landscape Maint Fund
(471)

62 -

62 512 2025 Water Revenue Bonds Fund (512)

432,000

-

432,000
567 Reclaimed Water Utility Fund (567)

50,000

-

50,000
570 Water Utility Fund (570)

625,000

-

625,000
578 Greenfield Electric Utility Fund (578)

34,000

-

34,000
684 Fleet Replacement Fund (684)

90,000

-

90,000
Total

$9,742,490

$46,668

$9,695,822
Fund
# Fund Appropriations
Estimated
Revenue
Increase Net Impact
110 General Fund (110) 397,326 - 397,326
120 Measure X Fund (120) 431,825 - 431,825
208
Temescal Canyon Police
Facilities Fund (208) 36,573 - 36,573
237
CFD 2018-2 Special Tax B
Sierra B Fund (237) 1,800 - 1,800
248
CFD 97-1 Landscape
Maint Fund (248) 400 - 400
249
CFD/LMD 2001-1
Landscape Maint Fund
(249) 2,200 - 2,200
272
CFD 2016-3 Zone 26 Tm
36605/36608 Fund (272) 4,750 - 4,750
291
Corona Housing Authority
Fund (291) 7,535,280 - 7,535,280
461
LMD 84-2 Zone 14
Landscape Maint Fund
(461) 8,000 - 8,000
512
2025 Water Revenue
Bonds Fund (512) 432,000 - 432,000
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567
Reclaimed Water Utility
Fund (567) 50,000 - 50,000
570 Water Utility Fund (570) 625,000 - 625,000
578
Greenfield Electric Utility
Fund (578) 34,000 - 34,000
684
Fleet Replacement Fund
(684)
90,000 - 90,000
Total $ 9,649,154 $ - $ 9,649,154
Approval of recommended actions b through l will not have an additional 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 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 is to approve budgetary adjustments for Fiscal year 2026, and there is no possibility that approval of the recommended actions will have a significant effect on the environment. Therefore, no environmental analysis is required PREPARED BY: LUIS NAVARRO, BUDGET SUPERVISOR
REVIEWED BY: KIM SITTON, SENIOR FINANCIAL ADVISOR
ATTACHMENTS:

1. Exhibit 1 – Appropriations, Estimated Revenues, and Transfers_Revised

2. Exhibit 2 – DC Frost Associates Inc. - Sole Source Letter

3. Exhibit 3 – Augustine General Engineering, Inc. – Third Amendment

4. Exhibit 4 – W.A. Rasic Construction Company – Fourth Amendment

5. Exhibit 5 – Valverde Construction, Inc. – Fifth Amendment

6. Exhibit 6 – A & Y Asphalt Contractors, Inc. – Fourth Amendment

7. Exhibit 7 – FY 2026, Q2 City Manager Purchases Report

8. Exhibit 8 – IT Renewal-Replacement Items FY25-26_Revised

Exhibit 1 - Appropriations, Estimated Revenues, and Transfers Item Department Fund Amount Description
1 Community Services General Fund (110) 51,500 Seasonal maintenance positions to perform deferred park maintenance, including uniforms, materials, and one-time tool purchases. 2 Economic Development General Fund (110) 332,326 Appraisal services, legal services, relocation costs, and FF&E payments for North Corona Mall Acquisition/Improvements, Operating and Maintenance Project No. 78390. 3 City Manager's Office General Fund (110) 13,500 Additional budget needed for additional support for RSG, Inc. to create numerous English and Spanish forms. 18 Community Services General Fund (110) 46,668 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

General Fund (110) Total 443,994
4 Community Services Measure X Fund (120) 54,365 Reappropriate Parks & Trails Foothill Extension Landscaping Project that was budgeted in FY 2025 in operating budget with invoice paid in FY 2026. 5 Community Services Measure X Fund (120) 15,500 Purchase dump trailer to support the Enhanced Maintenance Team to perform citywide maintenance and improvement projects. 6 Community Services Measure X Fund (120) 23,160 Operating budget for Enhanced Maintenance Team for the reminder of FY 2026. 2 Economic Development Measure X Fund (120) 335,000 141 N. Corona Mall Acquisition, North Corona Mall Acquisition/Improvements, Operating and Maintenance Project No. 78390. 7 Economic Development Measure X Fund (120) 3,800 Additional/separate report to address asbestos for South Corona Mall Acquisition/Improvements, Operating and Maintenance Project No. 79320.

Measure X Fund (120) Total 431,825
8 Police Temescal Canyon Police Facilities Fund (208) 36,573 Purchase of two (2) 2025 Honda Police edition dual sport motorcycles for use in the Temescal Valley area.

Temescal Canyon Police Facilities Fund (208) Total 36,573 18 Community Services CFD 2018-1 Special Tax B (Bedford) Fund (236) 926 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

CFD 2018-1 Special Tax B (Bedford) Fund (236) Total 926 9 Community Services CFD 2018-2 Special Tax B Sierra B Fund (237) 1,800 Recently assumed Electric utility cost for CFD 2018-2. 18 Community Services CFD 2018-2 Special Tax B Sierra B Fund (237) 2,085 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

CFD 2018-2 Special Tax B Sierra B Fund (237) Total 3,885 18 Community Services CFD 2017-2 Valencia Spec Tax B Fund (238) 234 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

CFD 2017-2 Valencia Spec Tax B Fund (238) Total 234
18 Community Services CFD 2002-2 Landscape Maint Fund (247) 356 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

CFD 2002-2 Landscape Maint Fund (247) Total 356
10 Community Services CFD 97-1 Landscape Maint Fund (248) 400 Additional landscape trimming need to enhance appearance and overall condition. 18 Community Services CFD 97-1 Landscape Maint Fund (248) 1,123 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

CFD 97-1 Landscape Maint Fund (248) Total 1,523
10 Community Services CFD/LMD 2001-1 Landscape Maint Fund (249) 2,200 Additional landscape trimming need to enhance appearance and overall condition. 18 Community Services CFD/LMD 2001-1 Landscape Maint Fund (249) 4,093 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

CFD/LMD 2001-1 Landscape Maint Fund (249) Total 6,293
18 Community Services CFD 2002-3 Landscape Maint Fund (251) 166 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

CFD 2002-3 Landscape Maint Fund (251) Total 166
18 Community Services CFD 2011-1 Landscape/Lighting Fund (253) 448 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

CFD 2011-1 Landscape/Lighting Fund (253) Total 448
18 Community Services CFD 2016-2 Terrassa Spec Tax B Fund (255) 99 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

CFD 2016-2 Terrassa Spec Tax B Fund (255) Total 99
18 Community Services CFD 2016-3 Zone-2 Boardwalk Fund (257) 314 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

CFD 2016-3 Zone-2 Boardwalk Fund (257) Total 314
18 Community Services CFD 2016-3 Zone 17 Corona Med Ctr Fund (263) 7 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

CFD 2016-3 Zone 17 Corona Med Ctr Fund (263) Total 7
18 Community Services CFD 2016-3 Zone 19 Cresta/Promenade Fund (265) 101 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

CFD 2016-3 Zone 19 Cresta/Promenade Fund (265) Total 101 11 Community Services CFD 2016-3 Zone 26 Tm 36605/36608 Fund (272) 4,750 Assumption of landscape and utilities services from the developer; contracting with Integrity Arborist for monthly and on-call services, and covering recycled water and electricity for the remaining fiscal year.
18 Community Services CFD 2016-3 Zone 26 Tm 36605/36608 Fund (272) 123 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

CFD 2016-3 Zone 26 Tm 36605/36608 Fund (272) Total 4,873 18 Community Services CFD 2016-3 Zone 15 Northpoint Fund (287) 2 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

CFD 2016-3 Zone 15 Northpoint Fund (287) Total 2
12 City Manager's Office Corona Housing Authority Fund (291) 7,535,280 Reappropriation for the Second Street Family and Multifamily Affordable Housing Project, inadvertently not carried forward from FY 2025 to FY 2026.

Corona Housing Authority Fund (291) Total 7,535,280
18 Community Services CFD 2016-3 Zone 6 Tm31373 Fund (294) 209 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

CFD 2016-3 Zone 6 Tm31373 Fund (294) Total 209
18 Community Services LMD 84-2 Zone 4 Landscape Maint Fund (456) 545 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

LMD 84-2 Zone 4 Landscape Maint Fund (456) Total 545
18 Community Services LMD 84-2 Zone 6 Landscape Maint Fund (457) 262 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

LMD 84-2 Zone 6 Landscape Maint Fund (457) Total 262
18 Community Services LMD 84-2 Zone 7 Landscape Maint Fund (458) 329 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

LMD 84-2 Zone 7 Landscape Maint Fund (458) Total 329
18 Community Services LMD 84-2 Zone 10 Landscape Maint Fund (460) 22,305 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

LMD 84-2 Zone 10 Landscape Maint Fund (460) Total 22,305 10 Community Services LMD 84-2 Zone 14 Landscape Maint Fund (461) 8,000 Additional landscape trimming need to enhance appearance and overall condition. 18 Community Services LMD 84-2 Zone 14 Landscape Maint Fund (461) 4,113 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

LMD 84-2 Zone 14 Landscape Maint Fund (461) Total 12,113 18 Community Services LMD 84-2 Zone 15 Landscape Maint Fund (462) 372 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

LMD 84-2 Zone 15 Landscape Maint Fund (462) Total 372
18 Community Services LMD 84-2 Zone 17 Landscape Maint Fund (463) 169 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

LMD 84-2 Zone 17 Landscape Maint Fund (463) Total 169
18 Community Services LMD 84-2 Zone 18 Landscape Maint Fund (464) 72 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

LMD 84-2 Zone 18 Landscape Maint Fund (464) Total 72
18 Community Services LMD 84-2 Zone 19 Landscape Maint Fund (468) 479 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

LMD 84-2 Zone 19 Landscape Maint Fund (468) Total 479
18 Community Services LMD 84-2 Zone 20 Landscape Maint Fund (470) 7,674 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

LMD 84-2 Zone 20 Landscape Maint Fund (470) Total 7,674 18 Community Services LMD 84-2 Zone 1 Landscape Maint Fund (471) 62 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

LMD 84-2 Zone 1 Landscape Maint Fund (471) Total 62
Appropriations
City of Corona Page 1 Fiscal Year 2026 Quarter 2 Budgetary Adjustments Page 103 of 447 Exhibit 1 - Appropriations, Estimated Revenues, and Transfers 13 Utilities 2025 Water Revenue Bonds Fund (512) 432,000 Waterline Replacement at Sherman Ave, Capital Improvement Project No. UT-2027-01. 2025 Water Revenue Bonds Fund (512) Total 432,000
14 Utilities Reclaimed Water Utility Fund (567) 50,000 Butterfield Drive Reclaimed Water Flow Control Station (Ineligible Costs), Capital Improvement Project No. UT-2023-03.

Reclaimed Water Utility Fund (567) Total 50,000
15 Utilities Water Utility Fund (570) 625,000 Waterline Infrastructure, Operating and Maintenance Project No. 71930.

Water Utility Fund (570) Total 625,000
16 Utilities Greenfield Electric Utility Fund (578) 34,000 Arc Flash Study, Operating and Maintenance Project No. 76280.

Greenfield Electric Utility Fund (578) Total 34,000
17 Public Works / Police Fleet Replacement Fund (684) 90,000 Replacement of total loss unit #79352, PD Vehicle Procurement Operating and Maintenance Project No. 68341.

Fleet Replacement Fund (684) Total 90,000
Appropriations (All Funds) Total 9,742,490
Item Department Fund Amount Description
18 Community Services General Fund (110) 46,668.00 Allocation of Parks Supervisor personnel costs across applicable LMD/CFD funds, prorated for FY 2026.

General Fund (110) Total 46,668.00
Item Project Fund Amount Description
Deferred Maintenance Across
Multiple Parks
General Fund (110) 135,000
Border Park General Fund (110) (135,000)
Playground Resurfacing General Fund (110) 72,000
Border Park General Fund (110) (72,000)
Civic Center Gym General Fund (110) / Measure X Fund (120) 50,000 Building Evaluation & Maintenance Plan General Fund (110) / Measure X Fund (120) (50,000) Historic Civic Center Facility
Capital Improvements
Measure X Fund (120) 181,370
Historic Civic Center Fountain and Sign Measure X Fund (120) (181,370) City Hall Paint Measure X Fund (120) 160,000
Building Evaluation & Maintenance Plan Measure X Fund (120) (160,000) Urban Water Management Plan Update Water Utility Fund (570) 75,000 Lead or Copper Service Line Audit Water Utility Fund (570) (75,000) Sewer Line Infrastructure Sewer Utility Fund (572) 876,150 Sewer Main Rehabilitation at Various
Locations Sewer Utility Fund (572) (876,150)
Water Reclamation Facility #1 Blower and
Digester Piping and Equipment Upgrade Sewer Utility Fund (572) 557,083 Water Reclamation Facility #1 Boiler Design Sewer Utility Fund (572) (557,083) Transfers Total -
Create new Capital Improvement Project, Urban Water Management Plan Update, and transfer total of $75,000 from Lead or Copper Service Line Audit. Operating and Maintenance Project No. 79390.
26 Transfer to Water Reclamation Facility #1 Blower and Digester Piping and Equipment Upgrade, Capital Improvement Project No. UT-2023-08 from Water Reclamation Facility #1 Boiler Design, Capital Improvement Project No. UT-2023-09.
24 Building Evaluation & Maintenance Plan has been completed. Transfer part of the remaining balance from the Building Evaluation & Maintenance Plan, Operating & Maintenance Project No. 78150 to the City Hall Interior Paint Project.
23 Estimated Revenues
Transfers
22 Consolidate active Historic Civic Center projects. Transfer from Historic Civic Center Fountain and Sign, Capital Improvement Project No. FC-2023-07, to Historic Civic Center Facility Capital Improvement, Capital Improvement Project No. FC-2022-08 to combine existing Historic Civic Center Capital Improvement Projects 19 20
21 Border Park has been completed. Transfer part of the remaining balance from the Border Park, Capital Improvement Project No. FC-2025-03 to address Deferred Maintenance Across Multiple Parks.

Border Park has been completed. Transfer part of the remaining balance from the Border Park, Capital Improvement Project No. FC-2025-03 to Resurface Playgrounds.

Building Evaluation & Maintenance Plan has been completed. Transfer part of the remaining balance from the Building Evaluation & Maintenance Plan, Operating & Maintenance Project No. 78150 ($48,830 from the General Fund 110 and $1,170 from the Measure X Fund 120) to the Civic Center Gym Fitness Room Remodel Project. 25 Transfer to Sewer Line Infrastructure, Operating and Maintenance Project No. 71950, from Sewer Main Rehabilitation at Various Locations, Operating and Maintenance Project No. 77840.

City of Corona Page 2 Fiscal Year 2026 Quarter 2 Budgetary Adjustments Page 104 of 447 DATE: 02/04/2026
TO: Honorable Mayor and City Council Members
FROM: Office of City Manager
2026-47

REQUEST FOR CITY COUNCIL ACTION
SUBJECT:

FISCAL YEAR 2026 QUARTER 2 BUDGET AND STRATEGIC PLAN PROGRESS

REPORT UPDATE

Budget Update
Quarter 2
FY 2026
February 4, 2026
Luis Navarro
Budget Supervisor

General Fund
General Fund, Measure X Fund, Corona Mall Fund, Historic Civic Center Fund, Community Benefit Fund, Pension Stabilization Trust Fund

General Fund Inflows Highlights
Revenues + Transfers In
Sales Tax – Increasing 2.0%, or $0.7 million
Property Tax – Increasing 4.1%, or $1.7 million
Overall, inflows are down 5.5% when compared to the same quarter in FY 2025. • Book Entries = -$12.2 million
• Adjusted for book entries, up by 3.7% compared to the same quarter in FY 2025.

Adjusted for book entries, Quarter 2 is on track with 50% of the year completed and 43.7% of the inflows received.

Esimated Inflows Received: 38.8% (43.7% adjusted for book entries) Current Services – Increasing 17.2%, or $1.2 million
Top 5 Revenues, Compared to Quarter 2, FY 2025
Other Taxes – Decreasing 1.7%, or $0.1 million
Other Revenue – Increasing 0.3%, or $0.01 million

General Fund Mid-Year Changes
Quarterly Budget Update | Quarter 2, FY 2026 | February 4, 2026 General Fund Inflows
Revenue + Transfers In
Budget to Mid-Year Estimates FY 2026

General Fund Inflows Revenues + Transfers In
Mid-Year Estimates to Actuals – December 2026

General Fund Inflows Revenues + Transfers In
Sales Tax – General Fund 110
Quarter Reporting Period
FY 2025
Quarter Total
FY 2026
Quarter Total
Yr over Yr
Qtrly Total
Change $
Yr over Yr
Qtrly Total
Change %
3 rd Quarter July – Sept $15,197,397 $14,899,763 ($297,634) (2.0%) 4 th Quarter Oct – Dec 15,874,577
1 st Quarter Jan – Mar 13,593,232
2 nd Quarter Apr – June 15,394,672
Fiscal Year Total $60,059,878 $14,899,763
Projected FY 2026 $58,580,730
Percentage of estimated revenue received 25.4% Page 111 of 447 General Fund Inflows Revenues + Transfers In
Sales Tax – Measure X Fund 120
Quarter Reporting Period
FY 2025
Quarter Total
FY 2026
Quarter Total
Yr over Yr
Qtrly Total
Change $
Yr over Yr
Qtrly Total
Change %
3 rd Quarter July – Sept $10,487,861 $10,955,136 $467,275 4.5% 4 th Quarter Oct – Dec 11,356,020
1 st Quarter Jan – Mar 10,282,920
2 nd Quarter Apr – June 11,117,461
Fiscal Year Total $43,244,261 $10,955,136
Projected FY 2026 $43,429,000
Percentage of estimated revenue received 25.2% Page 112 of 447 General Fund Outflows Highlights
Expenditures + Transfers Out
The cummulative outflow budget is $302.2 million 01
Through December, approximately 50% of FY complete
02 (approximately, due to timing of payments)
Overall outflows % of cumulative budget spent 33.7% 03
<40% Spent: CIP/O&M Projects, City Manager’s Office, Debt Service, Economic Development, General Government, and 04 Information Technology

General Fund Outflows Expenditures + Transfers Out
Budget to Actuals, Quarter 2, FY 2026

Budget
Balancing
General Fund Reserves
The General Fund has multiple reserves in fund
balance for various purposes. For the full list,
please reference the City’s financial statements,
Note 14 (for Fiscal Year Ending June 30, 2025,
page 114). This quarterly update highlights
three of those reserves. FY 2025 audited
amounts are noted in the table.

Emergency Contingency
1 Equal to 3 months of operating expenditures
Adjusted at the end of each fiscal year
2 3
$53,883,396
Reserve for pension related expenditures – debt
service payments for the Pension Obligation
Bonds or the City’s CalPERS unfunded accrued
liability (UAL) contributions.

Pension
Stabilization
$ 54,892,853
Unspent Measure X funds that don’t roll into
next FY will go into the reserve
Reserve amount discussed with Council each
year through the budget cycle
Measure X
Reserves
$13,206,477

Utilities Funds
Electric Funds, Water Funds, Sewer Funds

Utilities Funds
Reclaimed Water Utility
Fund
Sewer Utility Fund
Sewer
Funds
Water Capacity Fund
2025 Wastewater
Revenue Bond
Greenfield Electric
Utility Fund
Electric
Funds
Water Utility Fund
Sewer Utility Grant/
Agreement Fund
Water Utility Grant/
Agreement Fund
2025 Water Revenue
Bond
Sewer Capacity Fund
Direct Access Electric
Utility Fund
Water
Funds
Electric Utility Grant/
Agreement Fund

Utilities Funds Inflows
Revenues + Transfers
Quarter 2 is ahead of projections with 64.4% of the inflows received.

Esimated Inflows Received: 64.4%
Overall, inflows are up 138.6% when compared to the same quarter in FY 2025. • Book Entries = -$1.1 million
• Adjusted for book entries, up by 149%, or $85.7 million, compared to the same quarter in FY 2025. The change in the Investment Earnings category is due to how the City must report the unrealized gains/losses from investments. These are book entries and not actual cash.

↓ 14.4% decrease, $1.4M
↓ Current Services
↑ Fees & Permits
↓ Fines, Penalties & Forfeitures
↓ Intergovernmental Revenues
↓ Investment Earnings
↓ Other Revenue
↓ Utility Service Charges
↑ 154.8% increase, $52.4M
↓ Current Services
↑ Fees & Permits
↓ Fines, Penalties & Forfeitures
↑ Intergovernmental Revenues
↓ Investment Earnings
↑ Licenses, Fees & Permits
↑ Other Revenue
↑ Proceeds from Long Term Obligations
↑ Utility Service Charges
↑ 201.3% increase, $31.6M
↓ Current Services
↓ Fees & Permits
↑ Fines, Penalties & Forfeitures
↓ Investment Earnings
↓ Licenses, Fees & Permits
↑ Other Revenue
↑ Proceeds from Long Term Obligations
↑ Utility Service Charges
Electric Water Sewer
Utilities Funds Inflows Highlights
Quarter 2 Actuals, FY 2025 to FY 2026

Utilities Mid-Year Changes
Quarterly Budget Update | Quarter 2, FY 2026 | February 4, 2026 Utilities Funds Inflows
Revenue + Transfers In
Budget to Mid-Year Estimates FY 2026

Utilities Funds Inflows Revenues + Transfers In
FY 2026, Mid-Year Estimates to Actuals – December 2026

Sewer – 19.5%
 Operating budget 39.6% spent
 CIP / O&M budget

6.1% spent
Electric – 23.3%
 Operating budget 25.2% spent
 CIP / O&M budget

11.1% spent
Water – 29.3%
 Operating budget 47.0% spent
 CIP / O&M budget

13.9% spent
Outflows 25.0% of budget spent:

Utilities Funds Outflows Highlights
Expenditures + Transfers Out

Utilities Funds Outflows Expenditures + Transfers Out
Budget to Actuals, Quarter 2, FY 2026

Emergency Contingency
1 2 3
GOAL $4,901,402
Electric Utility
$1,257,122
Water
Utility
Sewer
Utility
$4,074,328 $1,716,527
Utilities Funds Reserves
The Utilities Funds target reserve amount for each of the operating funds shall be set at ninety (90) days. To build the target reserve amount, the Utilities Department shall annually contribute ten percent (10%) of the difference between actual operating revenues and actual operating expenses for each of the Utilities Department Operating Funds at the beginning of each fiscal year until the target reserve is met. Depending on the fund, it will take time to hit the target reserve amount. If the reserve amount exceeds the target reserve amount, the additional funds shall remain in reserves. The reserve process occurs annually, once the audit and financials are finalized.

GOAL $23,726,374 GOAL $12,817,081

Questions?
(951) 817-5742
[email protected]
www.CoronaCA.gov

Strategic Plan Implementation
Progress Report
Fiscal Year 26, Q2
City Managers Office
February 4, 2026 21

The Plan
• 1 Vision
• 1 Purpose
• 6 Value Statements
• 6 Goals
• 21 Objectives
• 138 Strategic Actions
• 125 Performance Indicators & Milestone
Measures

VISION
Corona will be a safe, vibrant,
family-friendly community.

PURPOSE
Create a community
where everyone can thrive.

VALUES
We are Bold
We challenge the status quo in our relentless pursuit to rethink how we do business. We are on a mission to innovate, modernize services, and bring government into the 21st century.

We are Humble
Everyone has a role to play, and we find purpose in doing our part. We own mistakes and learn from them to become better. We value feedback, embrace our vulnerabilities, and take time to celebrate others.

We are Driven
We have strong work ethic and tackle issues head on, even the tough stuff. We anticipate problems, develop creative solutions, and push ourselves to be better.

We are Honest
We strive to do what is right, not what is easy. We keep our commitments and take responsibility for results, even if things go wrong.

We are Kind
No matter who you are or where you are from, you’re welcome here. We embrace diversity, treat people with dignity, and genuinely care for others.

We are a Team
We give voice to our community. We trust and honor the process of collaboration. We achieve more together.

GOALS
Financial
Stability
Safe
Community
Sense of
Place
Strong
Economy
Sound
Infrastructure
High Performing
Government

FY26 Q2 Progress Report
Projects, Performance Measures & Milestones
Available on
https://performance.envisio.com/dashboard/cityofcorona2172 Page 132 of 447 27 28 Financial Stability
Progress Highlights
Review and update the City’s
purchasing process to ensure it
follows best practices
Identify core services and service
levels for both mandates and
non-mandated services.

Increase the percentage of
services funded via external
sources
Utilize Strategic Plan to guide
future financial decisions

29 Financial Stability Performance Report
Measure FY25 Q2 FY26 Q2 Trend Benchmark
POB Balance (in millions) $225M $207M ↓ $0M
% of GO Debt Capacity Used 5.85% 5.21% ↓ < 10%
Debt Payments as a % of Operating Budget 8.49% 7.85% ↓ < 10% *Outstanding Debt per Capita *$1,766 $1,659 ↓ < $2,000
Unfunded Pension Liability (in millions) $108.32M $97.8M ↓ $0M GO Bond Credit Rating AA+ AA+ - AAA
Diversity of Revenue Sources 14 14 -
< 50% from sales tax
*Outstanding Debt per Capita data changed and updated after the FY 25Q4 Strategic Progress Report to Council.

30 Strong Economy
Progress Highlights
Explore the feasibility of a facade
improvement program.

Redevelop the Corona Mall Properties,
secure tenants.

Implement ARPA-funded Small
Business Grants programs including
Entrepreneur, Small Business, and
Downtown Commercial Beautification
Grant.

Build partnerships and programs that
support youth and adult development to
ensure a prepared and skilled local
workforce.

31 Strong Economy Performance Report
Measure FY25 Q2 FY26 Q2 Trend Benchmark
*# of Companies Supported via Team Corona
Meetings/Businesses Assisted, Supported, and
Promoted
50 83 ↑ >30
# of Corona Mall Properties Redeveloped 28 28 - >3
% of Business Resources that can be Accessed in
Spanish
60% 60% - 100%
% of Commercial Brokers Engaged With 25% 80% ↑ >20%
% of Small Businesses that remain Open One Year After
Participating in Various Entrepreneurship Programs
100% 100% - 100%
% of Emprendedor@s graduates that successfully
launch their business
100% 100% - 100%

32 Sound Infrastructure
Progress Highlights
Continue efforts to implement "park
sponsorships" to increase funding and
community support for parks.

Demolish existing playground equipment and
install a new playground structure at Sheridan
Park.

Modernize traffic cameras and
explore AI to optimize traffic flows
Develop a long-term capital reserve/asset
management funding policy for maintaining and
replacing infrastructure assets.

33 Sound Infrastructure Performance Report
Measure FY25 Q2 FY26 Q2 Trend
% of Street Signs Replaced within Target Timeframes (30 days) 100% 100% - Town-wide Average Street PCI Rating 73 71 ↓
% of Residents Rating Recreation Facilities as Good or Excellent 74% 66% ↓ % of Residents Rating the Availability of Paths and Walking Trails as Good or Excellent
62% %65 ↑
% of Residents Rating the Bike Lanes as Good or Excellent 62% 62% - % of Residents Rating the Quality of Public Parks as Good or Excellent 74% 76% ↑ Benchmark
>95%
>70%
>65%
>65%
>60%
>75%

34 Safe Community
Progress Highlights
Expand resident engagement and
involvement in police and fire support efforts
(e.g., Citizens on Patrol, Neighborhood
Watch)
Provide preparedness training courses
and certifications. .

Continue to Implement the City’s
Homelessness Strategic Plan.

Explore opportunities to adopt
best practices and computer
aided dispatch systems.

35 Safe Community Performance Report
Measure FY25 Q2 FY26 Q2 Trend Benchmark
Average Police Response Time to Priority 1 Calls 00:05:40 00:05:45 ↑ <0:05:40 Average Police Response Time to 90% of Priority
1 Calls
00:04:24 00:04:40 ↑ <0:04:45
Medical Calls – Response Time 90th Percentile
Performance
00:07:01 00:06:38 ↓ <0:07:11
Average Response Time to All Fire Incidents 00:05:11 00:05:35 ↑ <0:05:30 *Property Crimes 653 616 ↓ <800
% of Community Satisfaction Rating of Public
Safety Efforts
69% %71 ↑ >65%
Number of Homeless Individuals Within the City 65 108 ↑ <90 *Property Crimes data changed and updated after the FY 24Q4 Strategic Progress Report to Council.

36 Sense of Place
Progress Highlights
Utilize volunteer-led hikes to help
residents become familiar with trail
and park opportunities
Increase large-scale recreation events
(sports-themed, food, etc.) that
provide the community with both
social and economic benefits.

Increase the City’s support,
coordination, and partnerships
to enhance veteran services and
programs.

Designate the Historic Civic
Center as Corona’s center for
the arts and relocate all non-arts
lessees.

37 Sense of Place Performance Report
Measure FY25 Q2 FY26 Q2 Trend Benchmark
% of Residents Rating Corona as a Place to Live as Good or Excellent
83% 84% ↑ >85%
% of Residents Rating Corona as a Place to Raise a Child as Good or Excellent
83% 82% ↓ >80%
% of Residents Rating the Overall Image or Reputation of Corona as Good or Excellent
69% 70% ↑ >65%
% of Residents Very Likely to Recommend Living in Corona to Someone Who Asks
87% 88% ↑ >90%
% of Residents who say, given the chance to start over, they would choose to live in Corona Again
83% 83% - >85%
% of Residents Rating the Community’s Openness and
Acceptance Towards People of Diverse Backgrounds as Good or Excellent
75% 75% - >75%

38 High Performing Government
Progress Highlights
Streamline and simplify the
process for recruiting and hiring
new employees to reflect best
practices.

Increase the City’s support,
coordination, and partnerships to
enhance veteran services and
programs.

Pursue meaningful award and
certification opportunities to evaluate
municipal services and better
demonstrate the talent, commitment,
outcomes achieved by the City for its
residents.

Develop annual
department work plans
based on the Strategic Plan
and the City’s budget.

39 High Performing Gov’t Performance Report
Measure FY25 Q2 FY26 Q2 Trend Benchmark
% of Major City Services that are Offered Virtually 84% 88% ↑ >80% % of Residents Rating the Overall Direction the City is Taking as Good or Excellent
59% 61% ↑ >60%
% of Residents Rating Overall Quality of City Services as Good or Excellent
67% 67% - >70%
% of Residents who Believe All City Residents are Treated Fairly 64% 64% - >70% % of Residents Rating Value of Services as Good or Excellent 47% 46% ↓ >50% Employee Turnover Rate 4.44% 2.5% ↓ <5%

40 Strategic Plan Overall Progress

Q2 By the Numbers
Operational Performance Update

105,924
Registered Library Users
10,255
Library Program
Participants
2,350
Trees Trimmed 554 Trees Planted
6,996
Recreation Activity
Participants
842/ 5,657 Hours
Community Volunteers
13,050
Attendees @
Special Events
181
Trees Removed
Community Services

Homelessness
537
CPD Homeless Related
Calls for Service
265
Cubic Yards of Debris
Removed
242
Emergency Shelter
Clients Served
158
City Net Street Outreach
& Engagement Contacts
10 Permanent Housing
Placements
77 Emergency Shelter
Beds Available Page 148 of 447 43
Community Engagement
14,629,319
Social Media Impressions
555,480
Website Visits
2,518,898
Total Video Views
208,911
Emails Opened
291,528
Total Social Media Audience
557,396
Social Media Engagements Page 149 of 447 44
SeeClickFix
543
Total Tickets submitted

1.38 Average days to
acknowledge

8.47 Average days to close
1,058
Street Maintenance Tickets
41,926 sqft
Graffiti Removed
151
Graffiti Tickets
289
Parkway Maintenance Tickets
(Landscape and Trees)

27 Live Work Corona Pledges
202*
New Businesses
20 Businesses Assisted, Supported, &
Promoted
1,514*
Business License Renewals
64 Business Outreach & Visitations 1
Partnership events with the Corona
Chamber * This number reflects business with physical locations in Corona.

INSPECTION

SERVICES PLANNING

SERVICES
328
Applications Processed
100%
Applications Processed on
Time
21 Average Days to Process
Applications
(Does not include over the counter permit)
TBD
Satisfaction Rating
PLAN
CHECK
906/942
Building Plan Checks/
Permits Issued
99%
Plan Checks/Permits Processed
on Time

5.21/3.85
Avg. Days to Review Plan
Checks/Permits
(first check/rechecks)

86.5%
Satisfaction Rating

DEVELOPMENT

SERVICES
389
Plan Checks/Permits Issued*
99%
Plan Checks/Permits
Issued on Time*
6 Avg. Days to Review Plan
Checks/Permits
100%
Satisfaction Rating
2,681/623
Building/Infrastructure
Inspections
99%
Inspections Completed on
Time
1 Avg. Days to Complete
Inspections
100%
Satisfaction Rating
CODE

COMPLIANCE
436
Cases Opened
660
NOVs Issued
500
Cases Closed
147
Citations Issued
(Dry Utility, Grading, TTM/PM Plan Checks &
Permits)
47 Planning & Development

Public Works
48 TRAFFIC

ENGINEERING
185
Work Orders Completed
(signing, striping, curb painting)
170
Traffic Signals
Maintained
142
Traffic Plan
Checks

CAPITAL

PROJECTS
87 Active CIP Projects
65 Planning/Design Phase
22 Out to Bid/Under Construction
2 Projects Completed

STREET MAINTENANCE
1,058/1,155
Work Orders Received/Completed
7,278
Curb Miles Swept
104
Streetlights Repaired
10,035
Sidewalk, Curb, Gutter Replaced
FLEET
394/121
Scheduled vs. Unscheduled Repairs
315
Vehicles & Equipment Inspected
21/34
Fire Apparatus Inspections/
Unscheduled Repairs
NPDES

INSPECTIONS
65 Commercial/Industrial Inspections
64 Construction Site Inspections
43 Illicit Connections & Discharges
Identified

TRANSIT
30,976
Corona Cruiser Ridership
11,422
Dial-a-Ride Ridership

49 203
Vehicles
Towed
65 Fire Calls
567
Fire Inspections
3,980
Calls for
Service
2,323
Medical Calls
21,227
Calls for Service
04:40
90% of response time falls
under*
1,258
Parking
Citations
4:44
Average Response Time
1,549
Vehicle
Citations
1,019
Arrests
60%
Response rate at 5:00 mins or
less*

83.76%
Response to medical calls at
6:00 mins or less

71.88%
Response to fire incidents at
6:00 mins or less
*Response to Priority 1 Calls
Public Safety
*Response to Priority 1 Calls

50 BILLING & ADMINISTRATION
3:17 Minutes
Average Speed of Answer
140,463
Bills Mailed
9,253
Customer Service Calls

40.3%
Auto Pay Subscriptions

UTILITIES MAINTENANCE
262/238
Work Orders
Received / Closed
163,806
CCTV Inspected
150,173 LF
Sewer Mains Cleaned
8,901
Meters Replaced

ELECTRIC

UTILITY
100%
Time Power is On
132,480
Mins. w/ Power
0 Mins. w/o Power
0 Electrical Outages
WATER

UTILITY

2.171 Billion Gal.

Water Treated
1,277/100%
Water Samples / Compliance Rate
1 Billion Gal.

Wastewater Treated
1,244/100%
Wastewater Samples/ Compliance Rate
Utilities

INFORMATION

TECHNOLOGY
4,639,695
Total Cyber Attacks
Deflected
3,556
IT Service Requests
Completed
#5
National Ranking for
IT Services
(Population125K-250K)
CLERK’S OFFICE
384
Public Records
Requests
6 Agendas Published
28 Claims Received
7 Subpoenas Processed

HUMAN RESOURCES
16 Jobs Posted
45 New Hires
48 Promotions
26 Separations

PURCHASING
11 Bids Issued
635
Contracts Executed
322
Purchase Orders Issued
491
P-Tracks Completed

ACCOUNTING
95%
Invoices Paid within 30
days
7,247
Invoices Processed
35 Consecutive Years
Receiving GFOA Award
51 Internal Support

Downtown Revitalization Progress
52 North Mall: Relocated four tenants, negotiated acquisition of three additional properties, Preparing Phase 2 demolition plans
The Hub: The Wine Down opened, Backyard lighting installed, Concept Plan finalized and Renovation plans for 725 Main are in for permits, Entertainment Zone approved
Downtown Street Signs: Installation completed
6th Street Transformation: Iconic sign design approved, Design work for street continues
Police Department Site: Demolition and new landscaping installed City Park: Finalized design for Council review
Northgate: Planning Commission approved
Innovation Center: Contract awarded
HCC: Operations Plan approved

Questions?
53 951-739-4995
[email protected]
v
www.CoronaCA.gov

Quarterly
Budget Update
Quarter 2
FY 2026

Quarterly Budget Update | Quarter 2, FY 2026 | February 4, 2026 Overview
Budget Adjustments & Revenue Estimates
City Management is pleased to present this quarterly update summarizing the City’s overall budget activity through Quarter 2 (December 31, 2025) for Fiscal Year (FY) 2026. The City’s fiscal year is July 1
st through June 30th
. For audited
information, or to find greater detail, please refer to the City’s annual financial statement, which is released by December 31st following the end of the fiscal year.

The revenue projections and budget expenditures presented in this update include budget adjustments approved by the City Council, continuing appropriations, and prior year encumbrances. This quarter also includes updated information for mid-year revenue projections.

General Fund Financial Condition
Quarterly Budget Update | Quarter 2, FY 2026 | February 4, 2026 The City’s General Fund is the primary source of discretionary resources that funds many of the services provided to the citizens of the City of Corona. The General Fund is made up of the General Fund, Measure X Fund, Corona Mall Properties Fund, Community Benefit Fund, Historic Civic Center Fund, and the Pension Stabilization Trust Fund.

The General Fund inflows (revenue and transfers in) for FY 2026 are currently estimated at $242.4 million. Based on Mid-Year projections, the updated estimate is $250.1 million, an increase of $7.7 million. The revenue changes will be discussed later in the newsletter.

The City has received or recorded 38.8% of the estimated General Fund inflows, through the end of Quarter 2 (at the time this information was prepared). Overall, inflows are down by 5.5% when compared to the same quarter of FY 2025.

As of Quarter 2 of FY 2026, the General Fund has expended 33.7% of its cumulative budget. The current savings is primarily due to capital improvement projects which will take multiple years to complete. Comparing Quarter 2 of FY 2026 to FY 2025, expenditures are down by 2.6%, or $2.7 million.

Budget
Balancing
General Fund Reserves
The General Fund has multiple reserves in fund
balance for various purposes. For the full list,
please reference the City’s financial statements,
Note 14 (for Fiscal Year Ending June 30, 2025,
page 114). This quarterly update highlights
three of those reserves. FY 2025 audited
amounts are noted in the table.

Emergency Contingency
1 Equal to 3 months of operating expenditures
Adjusted at the end of each fiscal year
2 3
$53,883,396
Reserve for pension related expenditures – debt
service payments for the Pension Obligation
Bonds or the City’s CalPERS unfunded accrued
liability (UAL) contributions.

Pension
Stabilization
$54,892,853
Unspent Measure X funds that don’t roll into
next FY will go into the reserve
Reserve amount discussed with Council each
year through the budget cycle
Measure X
Reserves
$13,206,477
Quarterly Budget Update | Quarter 2, FY 2026 | February 4, 2026

General Fund Inflows
Quarterly Budget Update | Quarter 2, FY 2026 | February 4, 2026 Top Five Revenues
The City’s top five General Fund revenue categories account for approximately 99.0% of the total estimated General Fund inflows for FY 2026. Focusing on these sources can provide a useful understanding of the City’s income position.

The bar graph to the right illustrates the performance of the top five revenues as compared to the same quarter of the prior two fiscal years.

General Fund Revenues
Top 5 Revenues Compared
Quarter 2
$-
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50 Millions
FY 2024
FY 2025
FY 2026

At the end of Quarter 2, Property Tax is the largest General Fund revenue category. The total for property tax is $43.8 million, an increase of $1.7 million, or 4.1%, over the prior fiscal year. The increase is primarily in secured property taxes. The majority of property tax revenues are recorded as revenue and booked as a receivable, once the annual report is received from the County of Riverside (generally November/December). Year-end adjustments “true-up” the amounts to the actual cash received.

Property Tax 01
At the end of Quarter 2, Sales Tax is the second largest General Fund revenue category. This category includes the City’s portion of sales tax, Measure X, Prop. 172 sales tax, and allowance for sales tax agreements. As of Quarter 2, the total received is $33.6 million. At the time this information was prepared, the revenues are up by 2.0%, or $0.7 million as compared to the prior year.

Sales Tax 02
The Current Services category is the third largest category at the end of Quarter 2. Activity in this revenue group include plan check fees, engineering and inspection fees, recreation revenues, and the Emergency Medical Services Program. At the end of Quarter 2, the total received is $7.9 million. Overall, the Current Services category is up by 17.2%, or $1.2 million, as compared to the same quarter in FY 2025. When comparing to the prior fiscal year, the increase is primarily due to Fire Service Agreements, Engineering and Inspections Services, Paramedic Program Services, and the After School Recreation Program.

Current Services 03
General Fund Inflows Top Five Revenues
Quarterly Budget Update | Quarter 2, FY 2026 | February 4, 2026

At the end of Quarter 2, a total of $5.5 million has been received in the Other Taxes category. Items in this revenue group include Franchise Fees, Transient Occupancy Taxes (TOT), Business License Taxes, and Cannabis Taxes. Other Taxes are down 1.7%, or $94,448 as compared to Quarter 2 of FY 2025. When comparing to the prior fiscal year, there is a decrease in Transient Occupancy Taxes due to when payments were received in FY 2026 and an increase in Cannabis Taxes.

Other Taxes 04
The fifth largest General Fund revenue category at the end of Quarter 2 is Other Revenues. Activity in this revenue group includes Rental/Lease Income, Telecommunication Site Rentals, Sales of Surplus Property, and Billboard Revenues. At the end of Quarter 2, the total received is $4.7 million. Overall, the Other Revenues category is up by 0.3%, or $13,711 as compared to the same quarter in FY 2025.

Other Revenue 05
General Fund Inflows Top Five Revenues
Quarterly Budget Update | Quarter 2, FY 2026 | February 4, 2026

General Fund Inflows
Quarterly Budget Update | Quarter 2, FY 2026 | February 4, 2026 General Fund Inflows
Revenue + Transfers In
Quarter 2, FY 2025 to FY 2026
General Fund Inflows
Revenue + Transfers In
FY 2026, Mid-Year Estimate to Quarter 2 Actuals

With an increase of $7.7 million, Intergovernmental Revenues includes increases in fire mutual aid reimbursement and federal grant revenue (American Rescue Plan Act reimbursement funds).

Intergovernmental Revenues 01
The primary increases in this category are for Engineering & Inspection, AMR System Enhanced Fees, Fire Service Agreements, and After School Recreation Program Fees.

Current Services 02
Based on the current economic outlook, sales tax is projected to decrease by $2.0 million as compared to original estimates. Regular sales tax revenues are anticipated to decrease by $1.5 million, and Measure X is expected to decrease by $0.5 million.

Sales Tax 03
General Fund Mid-Year Changes
Quarterly Budget Update | Quarter 2, FY 2026 | February 4, 2026 With the updated Mid-Year projections, the General Fund inflows are estimated to increase by 3.2%, or $7.7 million, from $242.4 million to $250.1 million.

General Fund Inflows
Revenue + Transfers In
Budget to Mid-Year Estimates FY 2026
The changes in Mid-Year estimates are based on three revenue categories:

The FY 2026 budget was adopted with $231.3 million in General Fund expenditures. With continuing appropriations of $39.9 million, encumbrances (committed purchase orders) of $22.3 million, and Transfers Out of $0.40 million, the beginning outflow budget was $293.9 million. Through Council Actions and other authorized adjustments, total outflows are currently $302.2 million.

Through Quarter 2, the City has spent $101.8 million, or 33.7% of the cumulative budget. At this point in the fiscal year, expenditures should be approximately 50% of budget. When comparing to the same quarter in FY 2025, outflows are down by 2.6%, or 2.7 million. The largest expenditure category for the General Fund is Personnel Services.

Personnel Services has an increase of $6.4 million as compared to the same quarter last fiscal year. The changes are primarily based on current Memorandum of Understanding (MOU) contracts that are good through December 2027, as well as new positions approved through the annual budget process.

Materials and Supplies is down by $11.9 million when compared to Quarter 2 of FY 2025. There are multiple increases and decreases in this category. The primary driver for change is property acquisitions in the prior fiscal year.

General Fund Expenditures Quarterly Budget Update | Quarter 2, FY 2026 | February 4, 2026 General Fund Outflows
Expenditures + Transfers Out
Quarter 2, FY 2025 to FY 2026
General Fund Outflows
Expenditures + Transfers Out
Budget to Actuals, Quarter 2, FY 2026

General Fund Expenditures By Department
Quarterly Budget Update | Quarter 2, FY 2026 | February 4, 2026 This budget does not follow the normal trends as these are multi-year projects. Any unspent encumbrances (purchase orders) or remaining balance carries forward to the next fiscal year to continue the project activities.

CIP / O&M Projects (9.3%)
Current savings are primarily due to contractual services in the Homeless Solutions Program (payment timing differences).

City Manager’s Office (19.3%)
Quarter 2 is trending low due to the timing of debt service payments based on approved payment cycles.

Debt Service (19.7%)
Through December 31, 2025, approximately 50% of the fiscal year is complete. Departments with a variance of 10% or more are explained in the following section.

Economic Development (35.2%)
Current savings are primarily due to contractual services.

General Government (35.4%)
Current savings are primarily due to personnel (Retirement Health Insurance and Other Post Employment Benefits) and Materials and Supplies.

Information Technology (22.5%)
Current savings are primarily due to contractual services, specifically, Fire Dispatch Services with the City of Ontario (payment timing differences).

Enterprise Funds
Quarterly Budget Update | Quarter 2, FY 2026 | February 4, 2026 Utilities Inflows
The City operates three utility services through the Utilities Department: electric, water, and sewer. Through the collection of fees and charges, these funds should collect revenues sufficient to finance the costs associated with administration, operations, capital improvement projects (CIP), and debt service.

Enterprise Funds - Utilities
Revenues Compared, Quarter 2
FY 2024 – FY 2025 – FY 2026
$-
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
Electric Water Sewer
FY 2024
FY 2025
FY 2026
Millions

Emergency Contingency
1 2 3
GOAL $4,901,402
Electric Utility
$1,257,122
Water
Utility
Sewer
Utility
$4,074,328 $1,716,527
Utilities Funds Reserves
Quarterly Budget Update | Quarter 2, FY 2026 | February 4, 2026 The Utilities Funds target reserve amount for each of the operating funds shall be set at ninety (90) days. To build the target reserve amount, the Utilities Department shall annually contribute ten percent (10%) of the difference between actual operating revenues and actual operating expenses for each of the Utilities Department Operating Funds at the beginning of each fiscal year until the target reserve is met. Depending on the fund, it will take time to hit the target reserve amount. If the reserve amount exceeds the target reserve amount, the additional funds shall remain in reserves. The reserve process occurs annually, once the audit and financials are finalized.

GOAL $23,726,374 GOAL $12,817,081

Water Sewer
Utilities Funds Inflows
Quarterly Budget Update | Quarter 2, FY 2026 | February 4, 2026 Comparing Quarter 2 FY 2026 revenues to FY 2025, there is a decrease of $1.4 million, or

14.4%. There were increases in categories: Current Services and Fees & Permits. There were decreases in categories: Current Services, Fines, Penalties & Forfeitures, Intergovernmental Revenues, Investment Earnings, Other Revenues, and Utility Services Charges. The change in the Investment Earnings category is due to how the City must report the unrealized gains/losses from investments. These are book entries and not actual cash.

Utilities Revenues - Through Quarter 2 FY 2026, revenues received have increased 138.6%, or $82.6 million, as compared to the same quarter in Fiscal Year 2025.

Through the second quarter of FY 2026, there is an increase of 154.8%, or $52.4 million, as compared to FY 2026. There is an increase of $13.2 million in Other Revenues, due to a Public Water Systems Settlement and an increase of $39.7 million in Proceeds from Long Term Obligations from the issuance of Water Revenue Bonds.

Through Quarter 2, there is an increase of 201.3%, or $31.6 million, when compared to FY 2025. There were increases in Utility Service Charges and decreases in Investment Earnings. The change in the Investment Earnings category is due to how the City must report the unrealized gains/losses from investments. These are book entries and not actual cash. The primary driver for the increase is related to Proceeds from Long Term Obligations in the amount of $31.7 million for the issuance of Wastewater Revenue Bonds.

Electric

Utilities Funds Inflows
Quarterly Budget Update | Quarter 2, FY 2026 | February 4, 2026 Utilities Funds Inflows
Revenue + Transfers In
Quarter 2, FY 2025 to FY 2026
Utilities Funds Inflows
Revenue + Transfers In
FY 2026, Mid-Year Estimates to Quarter 2 Actuals

Electric Utility revenues are anticipated to decrease by $0.3 million to $20.3 million. This represents a 1.3% decrease over the current budget amount of $20.6 million. The bulk of the decrease is related to investment earnings.

Electric 01
Water Utility revenues are estimated to increase by $38.2 million, as compared to the current budget amount of $90.6 million. The mid-year estimate of $128.8 million represents a 42.2% increase. There are both increases and decreases across all categories, but the primary driver of the increase is tied to proceeds of long-term obligations (issuance of water revenue bonds).

Water 02
Sewer Utility revenues are estimated to increase by $29.9 million, from $41.6 million to $71.5 million. This represents a 72.0% increase over the current budget. The primary reason for the increase is also due to proceeds of long-term obligations (issuance of wastewater revenue bonds).

Sewer 03
Utilities Mid-Year Changes
Quarterly Budget Update | Quarter 2, FY 2026 | February 4, 2026 With the updated Mid-Year projections, the Utilities Funds inflows are estimated to increase by 44.4%, or $67.9 million, from $152.8 million to $220.7 million.

Utilities Funds Inflows
Revenue + Transfers In
Budget to Mid-Year Estimates FY 2026

Water Sewer
Utilities Funds Outflows
Quarterly Budget Update | Quarter 2, FY 2026 | February 4, 2026 Overall, the Electric utility expenditures through Quarter 2 are up by 1.4%, or $81,148, when compared to last fiscal year during the same period. There are increases in contractual and utilities and decreases in personnel services and materials and supplies.

At Quarter 2, the operating expenditures total 25.2% of the current FY 2026 operating budget.

When comparing the total of utility outflows, Quarter 2 of FY 2026 to FY 2025, outflows are higher by 8.6%, or $5.0 million.

Overall, the Water utility expenditures are up by 16.4% or $5.5 million when compared to Quarter 2 in FY 2025. There are increases in materials and supplies, personnel services, and utilities, but there is a decrease in the contractual category.

Through Quarter 2, the operating expenditures total 47.0% of the current FY 2026 operating budget.

The Sewer utility expenditures are down by 3.0%, or $0.6 million, when compared to Quarter 2 of FY 2025. There are increases in materials and supplies, personnel services, and utilities but there are decreases in the contractual category.

At the end of Quarter 2, the operating expenditures total 39.6% of the current FY 2026 operating budget.

Electric

Utilities Funds Outflows
Quarterly Budget Update | Quarter 2, FY 2026 | February 4, 2026 Utilities Funds Outflows
Expenditures + Transfers Out
Quarter 2, FY 2025 to FY 2026
Utilities Funds Outflows
Expenditures + Transfers Out
Budget to Actuals, Quarter 2, FY 2026

What do you think?
We value your opinion.

Is there anything additional you’d like to see in future reports? This will be an evolving process to capture the areas that are of most interest to the City Council and the community. Please let us know. We appreciate the feedback! Please share your ideas at [email protected], or contact budget staff at (951) 279-3500.

LiveWork.CoronaCA.gov Page 177 of 447
City Strategic Plan Progress Report
Report Created On: Jan 22, 2026

6 Strategic Goal
138
Activity
Report Legend Priority No Update Overdue
Overall Summary
%
On Track 9
Work Underway 16
Not Started 4
Status Completed 71
0 100
#
Progress
88%

Financial Stability - Ensure the City has adequate and sustainable funding to deliver high-quality services to residents.

Owner: Alex Mercado
% #
On Track 13 2
Work Underway 6 1
Completed 81 13
Utilize the Strategic Plan as a framework to guide future financial decisions.

Owner: Kim Sitton
Update provided by Kim Sitton on Dec 31, 2025 08:00:02
Continuous item.

Develop a long-range financial forecasting model and plan based on needs and community assessments to ensure
adequate capital reserves.

Owner: Kim Sitton
Update provided by Kim Sitton on Apr 11, 2023 20:49:43
Item completed in March 2021. Information to be updated and maintained on an annual basis through the budget process to ensure adequate reserves.

Identify core services and service levels for both mandated and non-mandated services, determining resources needed to
adequately support these services, and re-allocate the City budget to fully support these services.

Owner: Kim Sitton
Update provided by Kim Sitton on Jun 30, 2024 19:51:13
Completed in FY 2024 through the FY 2025 budget process. The FY 2025 budget was adopted by the City Council on June 5, 2024.

Strategic Goal 1 Progress 92%
Objectives: 2 Activity: 16
Activity 1.1.1
Jul 01, 2020 - Jun 30, 2026 On Track Progress 66%
Activity 1.1.2
Jul 01, 2021 - Jun 30, 2022 Completed Progress 100%
Activity 1.1.3
Jul 01, 2023 - Jun 30, 2024 Completed Progress 100%

Pursue an AAA/Aaa/AAA GO Bond credit rating from S&P and Moody’s & Fitch.

Owner: Kim Sitton
Update provided by Kim Sitton on Dec 31, 2025 08:00:01
The City's POBs are rated AA+ in September 2021 by S&P. Water Revenue Bonds are rated AA in September 2025 by S&P, and Wastewater Revenue Bonds are rated AA+ in September 2025 by S&P. Bond credit rating to be re-evaluated by rating agencies with the next bond issuance.

Hold annual work sessions to identify potential cost savings and cost-containment opportunities.

Owner: Kim Sitton
Update provided by Kim Sitton on Jul 11, 2023 19:03:58
Department budget review meetings completed Feb/Mar 2023. Spring Financial Workshop held on April 13, 2023. FY 2024 budget process completed with City Council budget adoption on June 21, 2023.

Proactively manage the City’s pension liability debt.

Owner: Kim Sitton
Update provided by Kim Sitton on Jul 11, 2023 19:06:21
The issuance of POBs with an aggressive payoff schedule, the establishment of a section 115 pension stabilization trust, prefunding the trust with $30M and adopting a Pension Management Policy has effectively resolved this issue. Each fiscal year, the new CalPERS pension liability will be reviewed and addressed per the Pension Management Policy.

Regularly review revenue sources to ensure a balanced,
intentional allocation of revenue sources that protect against over-reliance on any single source of revenues.

Owner: Kim Sitton
Update provided by Aminah Mears on Oct 31, 2023 21:42:48 Annual evaluation through the budget process. FY 2025 revenue sources will be evaluated during the budget process, by June 30, 2024.

Review and update City fees and set intentional cost recovery goals for City services.

Owner: Kim Sitton
Update provided by Kim Sitton on Jul 11, 2023 19:07:46
New fee schedule adopted March 2022. Fees implemented in various systems and completed May 2022.

Activity 1.1.4
Jul 01, 2020 - Jun 30, 2026 Work Underway
Progress 33%
Activity 1.1.5
Jul 01, 2022 - Jun 30, 2023 Completed Progress 100%
Activity 1.1.6
Jul 01, 2021 - Jun 30, 2022 Completed Progress 100%
Activity 1.1.7
Jul 01, 2020 - Jun 30, 2026 Completed Progress 100%
Activity 1.1.8
Jul 01, 2021 - Jun 30, 2022 Completed Progress 100%

Increase the percentage of services funded via external sources by proactively pursuing grants, partnerships, and other funding opportunities.

Owner: Kim Sitton
Update provided by Kim Sitton on Dec 31, 2025 08:00:01
Continuous item; working with departments to identify funding opportunities.

Create strategic reserve funds (e.g. redevelopment, land acquisition, business attraction, etc.) to achieve organizational objectives.

Owner: Kim Sitton
Update provided by Alex Mercado on Oct 26, 2022 20:13:51 Reserve fund created in the FY22 Budget
Utilize zero-based budgeting on a three-year cycle to identify cost savings, justify expenditures, and ensure well-constructed financial plans.

Owner: Kim Sitton
Update provided by Kim Sitton on Jul 11, 2023 19:09:29
Review of department budgets completed for FY 2024. Continuous item with annual review through budget process.

Implement new budgeting software to streamline the annual budget development process, reduce the timeline and
resources needed, and enhance budgeting scenario
capabilities.

Owner: Kim Sitton
Update provided by Kim Sitton on Jul 11, 2023 19:10:02
New software (Questica) utilized beginning with the FY 2022 budget.

Activity 1.1.9
Jul 01, 2020 - Jun 30, 2026 On Track Progress 66%
Activity 1.1.10
Jul 01, 2021 - Jun 30, 2023 Completed Progress 100%
Activity 1.2.1
Jul 01, 2020 - Jun 30, 2026 Completed Progress 100%
Activity 1.2.2
Jul 01, 2020 - Jun 30, 2026 Completed Progress 100%

Establish a process to track total grant funding received on an annual basis.

Owner: Kim Sitton
Update provided by Kim Sitton on Jul 11, 2023 19:12:26
Process to track grant funding is complete.

Enhance opportunities for resident participation in the budget process.

Owner: Kim Sitton
Update provided by Kim Sitton on Jul 11, 2023 19:12:47
Budget available in multiple languages; full day budget workshops; community survey to guide budget priorities.

Find ways to simplify budget information.

Owner: Kim Sitton
Update provided by Kim Sitton on Jul 11, 2023 19:13:08
Interactive budget implemented; continuous item.

Ensure budget information is available in both English and Spanish.

Owner: Kim Sitton
Update provided by Kim Sitton on Jul 11, 2023 19:13:40
Interactive budget document implemented in multiple languages in Q1 FY23.

Activity 1.2.3
Jul 01, 2022 - Jun 30, 2023 Completed Progress 100%
Activity 1.2.4
Jul 01, 2022 - Jun 30, 2023 Completed Progress 100%
Activity 1.2.5
Jul 01, 2020 - Jun 30, 2026 Completed Progress 100%
Activity 1.2.6
Jul 01, 2021 - Jun 30, 2023 Completed Progress 100%

Last Update: Jan 09, 2026 00:30:34
Outstanding debt per capita
Date
$564 $564 $564 $564 $564 $564 $564 $564
$2,212 $$2,212 2,212$2,212 $$2,212 2,212$2,212 $$2,212 2,212$2,212 $$2,212 2,212 $2,069 $$2,069 2,069$2,069 $$2,069 2,069$2,069 $$2,069 2,069$2,069 $$2,069 2,069 $1,894 $$1,894 1,894$1,894 $$1,894 1,894$1,894 $$1,894 1,894$1,894 $$1,894 1,894 $1,766 $$1,766 1,766$1,766 $$1,766 1,766$1,766 $$1,766 1,766$1,766 $$1,766 1,766 $1,659 $$1,659 1,659$1,659 $$1,659 1,659
FY21 Q1
FY21 Q2FY21 Q3
FY21 Q4
FY22 Q1
FY22 Q2FY22 Q3
FY22 Q4
FY23 Q1
FY23 Q2
FY23 Q3
FY23 Q4FY24 Q1
FY24 Q2FY24 Q3
FY24 Q4
FY25 Q1
FY25 Q2FY25 Q3FY25 Q4FY26 Q1
FY26 Q2
$0
$500
$1000
$1500
$2000
$2500

Last Update: Jan 09, 2026 00:30:35
% Major Operating Funds Maintaining Minimum Fund Balance Quarter
100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% FY21 Q1
FY21 Q2
FY21 Q3
FY21 Q4
FY22 Q1
FY22 Q2
FY22 Q3
FY22 Q4
FY23 Q1
FY23 Q2
FY23 Q3
FY23 Q4
FY24 Q1
FY24 Q2
FY24 Q3
FY24 Q4
FY25 Q1
FY25 Q2
FY25 Q3
FY25 Q4
FY26 Q1
FY26 Q2
0%
25%
50%
75%
100%