DATE: 05/20/2026
TO: Honorable Mayor and City Council Members
FROM: Public Works Department
2026-176
REQUEST FOR CITY COUNCIL ACTION
SUBJECT:
APPROVAL OF AN UPDATED SENATE BILL (SB) 125 TRANSIT AND INTERCITY RAIL
CAPITAL PROGRAM FUNDING AGREEMENT BETWEEN RCTC AND THE CITY OF CORONA
EXECUTIVE SUMMARY:
This staff report asks the City Council to approve an updated SB125 Funding Agreement between the Riverside County Transportation Commission (RCTC) and the City of Corona.
RECOMMENDED ACTION:
That the City Council authorize the City Manager, or his designee, to execute the updated funding agreement between the City of Corona and the Riverside County Transportation Commission in the amount of $10 million from the Senate Bill 125 Transit and Intercity Rail Capital Program to the McKinley Street Grade Separation Project.
BACKGROUND & HISTORY:
On October 2, 2024, the City Council approved the SB 125 Funding Agreement with the Riverside County Transportation Commission to accept and appropriate $10 million to fund the McKinley Street Grade Separation Project. Although the agreement was approved by the Commission and the City Council, the agreement was not executed.
ANALYSIS:
The agreement has undergone some minor language updates to clarify the eligibility of right-of-way costs for reimbursables and update insurance liability requirements. Section
3.13.1 Commercial General Liability Insurance has been increased from $2 million to $5 million, and Section 3.13.2 Business Automobile Liability Insurance has been increased from $1 million to $2 million. These modifications require City Council approval. The City Attorney has reviewed the updated changes and has approved the agreement as to form.
FINANCIAL IMPACT:
There is no financial impact associated with the recommended action, as the action item is to approve the updated SB125 Funding Agreement. The $10 million budget appropriation for the McKinley Street Grade Separation Project, Capital Improvement Project No. ST-2012-12, was already appropriated to the project with the original funding agreement approved on October 2, 2024.
ENVIRONMENTAL ANALYSIS:
Per Public Resources Code Section 21080.13, all railroad grade separation projects that eliminate an existing at-grade crossing is exempt per the California Environmental Quality Act (CEQA). As a grade separation project, this Project is statutorily exempt under the California Environmental Quality Act. The recommended actions are to approve an updated funding agreement for the McKinley Street Grade Separation Project, and there is no possibility that accepting the funding will have a significant impact on the environment. Therefore, no environmental analysis is required.
PREPARED BY: KEVIN HANNA, ASSOCIATE ENGINEER
REVIEWED BY: SAVAT KHAMPHOU, PUBLIC WORKS DIRECTOR
ATTACHMENTS:
1. Exhibit 1 –Updated Funding Agreement