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