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RESOLUTION NO. 2026-083
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CORONA, CALIFORNIA, AUTHORIZING THE CITY
MANAGER TO APPROVE AND EXECUTE PAYMENT
PLAN AND LIEN AGREEMENTS FOR CITY REPAIR OF
PRIVATE SERVICE LINES ASSOCIATED WITH THE
ADVANCED METERING INFRASTRUCTURE METER
REPLACEMENT PROGRAM
WHEREAS, the City of Corona (“City”) is currently implementing a citywide Advanced Metering Infrastructure (“AMI”) Meter Replacement Program to upgrade approximately 46,500 water meters and improve water system operations, conservation efforts, and regulatory compliance; and
WHEREAS, during meter replacement activities, the City and its authorized contractor have identified private water service lines composed of galvanized steel and other deteriorated materials that exhibit significant signs of corrosion and deterioration; and WHEREAS, in certain instances, replacement of an existing water meter may cause an already weakened private service line to fail, requiring immediate repair or replacement to restore water service; and
WHEREAS, pursuant to Corona Municipal Code Section 13.14.090(C), property owners are responsible for the maintenance and repair of private water service lines and related fixtures located beyond the meter connection; and
WHEREAS, Corona Municipal Code Section 13.14.060 authorizes the City to establish payment plans for eligible customers in connection with water and sewer infrastructure, and the City Council desires to authorize a limited expansion of this authority to permit the Utility Director’s authority to approve and execute payment plan and lien agreements with property owners to permit the City to repair or replace deteriorated private service lines in connection with the AMI Meter Replacement Program and to require repayment of all costs incurred by the City for such work; and
WHEREAS, the City Council finds that providing an optional payment plan and lien agreement for eligible property owners experiencing an unexpected private service line failure during meter replacement activities will promote timely repairs and reduce hardship while ensuring full cost recovery to the City; and
WHEREAS, the City has prepared a template Payment Plan and Lien Agreement attached hereto as Exhibit “A” and incorporated herein by reference to be used for situations authorized by this Resolution; and
WHEREAS, an appropriation of $250,000 from the Water Utility Fund (Fund 1570) is necessary to advance costs associated with eligible private service line repairs and 2 JAMIER\06100.16002\10325950.2
replacements, with reimbursement to be received from participating property owners pursuant to the applicable payment plan and lien agreements.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF CORONA, CALIFORNIA, AS FOLLOWS:
SECTION 1. Recitals. The above recitals are true and correct and are incorporated herein by this reference.
SECTION 2. Payment Plan and Lien Agreement. The City Council hereby approves the Payment Plan and Lien Agreement substantially in the form attached hereto as Exhibit “A” and authorizes the City Manager, or designee, to approve, execute, administer, and implement such agreements for eligible private service line repair and replacement projects associated with the AMI Meter Replacement Program.
SECTION 3. Administrative Authority. The City Manager, or designee, is authorized to establish administrative procedures, determine eligibility requirements, establish repayment terms consistent with City policy, execute related documents, and take any actions necessary to carry out the intent of this Resolution.
SECTION 4. Appropriation. The City Council hereby authorizes an appropriation of $250,000 from the Water Utility Fund (Fund 1570) to fund eligible private service line repairs and replacements associated with implementation of this Resolution.
PASSED, APPROVED AND ADOPTED this 1st day of July, 2026.
Mayor of the City of Corona, California
ATTEST:
City Clerk of the City of Corona, California
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CERTIFICATION
I, Sylvia Edwards, City Clerk of the City of Corona, California, do hereby certify that the foregoing Resolution was regularly passed and adopted by the City Council of the City of Corona, California, at a regular meeting thereof held on the 1st day of July, 2026 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 1st day of July, 2026.
City Clerk of the City of Corona, California
[SEAL]
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EXHIBIT "A"
PAYMENT PLAN AND LIEN AGREEMENT
(CITY ATTY: 08-20)
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[***MODEL - REMOVE THIS TITLE WHEN USED***]
RECORDED AT REQUEST OF
AND WHEN RECORDED RETURN TO:
City of Corona
400 S. Vicentia Ave
Corona, California 92882
Attn: City Clerk (UD)
Fee Exempt - Gov't Code §27383
APN: [***INSERT APN***] (Space above for Recorder's Use)
CITY OF CORONA
PAYMENT PLAN AND LIEN AGREEMENT
([***INSERT ADDRESS***])
1. PARTIES AND DATE.
This Payment Plan and Lien Agreement (“Agreement”) is made and entered into this [***INSERT DATE***] (“Effective Date”) by and between the City of Corona, a California municipal corporation (“City”), and [***INSERT PROPERTY OWNER NAME AS IT APPEARS ON TITLE***] (“Owner”). City and Owner are at times referred to collectively as “Parties” and individually as “Party” herein.
2. RECITALS.
2.1 Subject Property. The Owner is the record owner of certain real property located at [***INSERT ADDRESS***] Corona, California [***INSERT ZIP***], more particularly described in Exhibit “A” attached hereto and incorporated herein by reference (“Subject Property”).
2.2 Meter Replacement Project. [**INSERT DESCRIPTION OF CITY’S METER REPLACEMENT PROJECT**] (“Meter Replacement Project”).
2.3 Deteriorated Private Service Lines. Pursuant to Corona Municipal Code Section
13.14.090, Owner is responsible for the maintenance and repair of all service lines, pipes, fixtures extending beyond the meter connect to the Owner’s residence on the Subject Property (“Private Service Line”). In connection with the Meter Replacement Project, it was discovered that the Private Service Line on the Subject Property is composed of galvanized materials and shows significant signs of corrosion and deterioration.
2.4 City Repair of Private Service Lines. Owner has requested that the City repair the Private Service Line by [**INSERT DESCRIPTION OF REPAIR WORK**] (“Repair Work”). (CITY ATTY: 08-20)
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2 2.5 Payment Agreement. The City has agreed to perform the Repair Work in exchange for the Owner entering into this Agreement and reimbursing the City for the Total Cost of the Repair Work pursuant to the terms and conditions of this Agreement.
3. AGREEMENT.
3.1 Incorporation of Recitals. The Parties acknowledge that the above recitals are true and correct, and incorporate those recitals by reference into this Agreement.
3.2 Completion of Repair Work. The City shall:
3.2.1 Obtain all necessary permits, approvals or agreements required by any Federal or State resource or regulatory agencies pertaining to the Repair Work.
3.2.2 Perform, with the City’s own forces, or by contract, the Repair Work on the Subject Property in accordance with [**INSERT ANY STANDARDS/SPECIFICATIONS THAT WILL APPLY TO THE REPAIR WORK**].
3.2.3 Keep an accurate accounting of the Total Costs (defined in Section 3.3) associated with the Repair Work.
3.2.4 Upon completion of the Repair Work, the sole responsibility for the maintenance and repair of the Private Service Line shall automatically be vested with the Owner.
3.3 Definition of Total Cost. For purposes of this Agreement, the term “Total Costs” means, without limitation, all labor, materials, tools, equipment, services and incidental and customary work necessary to plan, engineer, design, environmentally review, permit, site, bid and construct the Repair Work, including, without limitation, all costs and expenses for the following: engineering, architectural, appraisal, legal and other consultant services throughout the preconstruction and construction phases; bid preparation and administration services, soil, project and other inspection and testing services; construction and project management services; and all construction and project close-out activities.
3.4 Estimated Cost; Total Principal Obligation. For informational purposes only, the City has estimated the Total Cost of the Repair Work to be [**INSERT WRITTEN DOLLAR AMOUNT**] Dollars ($[**INSERT DOLLAR AMOUNT**]) (“Estimated Cost”). Upon completion of the Repair Work, the City shall: (1) document and determine the actual Total Cost of the Repair Work (“Total Principal Obligation”); and (3) provide by certified mail such information to the Owner.
3.5 Monthly Payment Schedule. In lieu of paying the Total Principal Obligation in one lump-sum payment, Owner agrees to pay the Total Principal Obligation, plus [**INSERT WRITTEN NUMBER**] percent ([**INSERT WRITTEN NUMBER**]%) interest compounded annually, in monthly installments (“Monthly Payment”) for a period of twenty-four (24) months in the amounts specified in the amortization schedule set forth in Exhibit “B” attached hereto and incorporated herein by reference (“Amortization Schedule”). Each Monthly (CITY ATTY: 08-20)
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3 Payment shall be due and payable in immediately available funds on or before fifth (5th) day of each month commencing with the first full month following completion of the Repair Work.
3.5.1 Estimated Total Principal Obligation; Updated Amortization Schedule.
The Parties acknowledge that the Amortization Schedule is based upon the Estimated Cost of the Repair Work. Once the Total Principal Obligation is determined pursuant to Section 3.4 of this Agreement, the Parties agree that the Amortization Schedule will be updated accordingly to reflect the Total Principal Obligation, Owner shall sign such updated Amortization Schedule, and said updated Amortization Schedule shall be automatically incorporated into this Agreement by reference without an amendment to this Agreement.
3.6 Discontinuation of Water Service. If an Event of Default occurs, including failure to timely make any required Monthly Payment, Owner understands, acknowledges and agrees that City reserves the right to discontinue water service to the Subject Property to the extent authorized by applicable law. City shall have the right to completely discontinue water service to the Subject Property until the unpaid balance has been paid in full, and shall not be required to provide limited service according to a pro rata formula. Owner expressly waives any and all rights it may have under any uniform codes (including, but not limited to, the California Building Code), or under any other applicable law(s), to receive water service, except in compliance with this Agreement and to the extent authorized by applicable law.
3.7 Contractual Lien. Owner further agrees for itself, its heirs, successors and assigns, that effective upon the execution of this Agreement, City shall have a lien upon the Subject Property to guarantee the full and timely performance by Owner of its obligations under this Agreement. The lien upon the Subject Property shall be in an amount equal to the unpaid portion of the amount owed under this Agreement, plus any accrued interest and any costs incurred by the City to enforce this Agreement. Such lien may be enforced in the manner provided by law. This lien is in addition to any rights or remedies which the City may have which may arise by operation of any applicable law, including, without implied limitation, the Corona Municipal Code. The lien created pursuant to this Agreement shall occupy a priority position against the Subject Property senior to all other non-statutory monetary liens and encumbrances against the Subject Property, except to the extent that Owner lacks the right to grant the lien priority over other liens and encumbrances against the Subject Property existing as of the date of this Agreement.
3.8 Recordation and Enforcement. City may record this Agreement in the official records of the County of Riverside, and may take such action in law, equity, or otherwise, as City deems necessary to enforce the provisions of this Agreement, including but not limited to actions for injunctive relief. This Agreement shall run with the land. The obligations of and the lien created by this Agreement shall run with the Subject Property, and the requirements imposed by this Agreement shall bind the heirs, successors and assigns of Owner as owner of the Subject Property until satisfied in full. Owner further agrees and acknowledges the City may take such measures as it deems necessary to collect all amounts owed under this Agreement in the event of non-payment, including tendering the debt to a collection agency and/or initiating legal action for collection.
(CITY ATTY: 08-20)
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4 3.9 Attorneys’ Fees. If any legal action, or any arbitration or other proceeding is initiated for the enforcement of this Agreement or because of any alleged dispute, breach, default or misrepresentation in connection with any of the provisions of this Agreement, the successful or prevailing party shall be entitled to recover reasonable attorneys’ fees, witness fees and other costs incurred in that action or proceeding, in addition to any other relief to which it may be entitled.
3.10 Indemnity. Owner shall indemnify, defend and hold harmless City, its elected officials, board members, officers, agents, employees and authorized volunteers from and against any and all claims, damages, demands, liability, costs, losses and expenses, including, without limitation, court costs, reasonable attorneys’ fees, and expert witness fees, arising out of, in connection with or in any way related to the negligence or misconduct of Owner relating to this Agreement, including but not limited to any breach of this Agreement by Owner, and including, without limitation, all costs of collection, including attorneys’ fees and all costs of suit, in the event any payment required under this Agreement is not made when due.
3.11 Term. This Agreement shall be in full force and effect from the Effective Date and shall continue in full force and effect until Owner has paid all money due to City hereunder.
3.12. Events of Default. Upon the occurrence of any of the events listed below, an “Event of Default” shall be deemed to have occurred and City may, at City’s option, without prior notice, (i) declare the then-unpaid principal amount of all amounts owed under this Agreement, plus any accrued interest (collectively, the “Payment Amount”) to be immediately due and payable, and the same shall immediately become due and payable; and (ii) exercise all rights and remedies provided in this Agreement:
3.12.1 Owner shall fail to make any payment under this Agreement when due or within ten (10) days following written notice of such failure from City; or
3.12.2 There shall occur any breach of this Agreement by Owner; or
3.12.3 Owner shall (i) become insolvent or unable to pay Owner’s debts generally as they mature, (ii) make a general assignment for the benefit of creditors, (iii) admit in writing Owner’s inability to pay Owner’s debts generally as they mature, (iv) file or have filed against it a petition in bankruptcy or a petition or answer seeking a reorganization, arrangement with creditors or other similar relief under the Federal bankruptcy laws or under any other applicable law of the United States of America or any state thereof, or (v) consent to the appointment of a trustee or receiver for it or for a substantial part of the Subject Property; or
3.12.4 Any order, judgment or decree shall be entered appointing, without Owner’s consent, a trustee or receiver for it or for a substantial part of the Subject Property that is not removed within sixty (60) days from such entry; or
3.12.5 A judgment against Owner for the payment of money totaling in excess of $10,000 shall be outstanding for a period of sixty (60) days without a stay of execution thereof; or
(CITY ATTY: 08-20)
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5 3.12.6 The holder of any senior or junior encumbrance on the personal property collateral encumbered by this Agreement shall institute foreclosure or other proceedings for the enforcement of its remedies thereunder; or
3.12.7 Owner permits or suffers Owner’s leasehold or other interest in the Subject Property to be divested, sold, transferred, terminated or otherwise conveyed, whether voluntarily or involuntarily. This provision shall apply to each and every sale, transfer or conveyance, regardless of whether or not City has consented to, or waived, City's right hereunder, whether by action or nonaction, in connection with any previous sale, transfer, or conveyance, whether one or more.
Notwithstanding the above, in the event of an actual or deemed entry of an order for relief with respect to Owner under the United States Bankruptcy Code, this Agreement and all interest and other amounts due hereon shall automatically become and be due and payable, without presentment, demand, protest or any notice of any kind, all of which are hereby expressly waived by Owner. City may exercise its option to accelerate after any Event of Default, regardless of any prior forbearance.
3.13 Entire Agreement. This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements.
3.14 Modification. This Agreement may be modified only in writing, signed by both Parties.
3.15 Notice. Written notice, whenever required by this Agreement, shall become effective upon personal service or deposit in the United States mail, postage prepaid, addressed to the following:
CITY: OWNER:
City of Corona [***INSERT NAME***]
755 Public Safety Way [***INSERT ADDRESS***]
Corona, CA 92880
Attn: Tom Moody, Utilities Director
3.16 Venue. This Agreement shall be interpreted according to the laws of the State of California. Venue shall be in Riverside County, California.
3.17 Counterparts. This Agreement may be executed in counterparts, all of which, taken together, shall be deemed one original.
3.18 Corona Utility Authority. Owner understands that the City has entered into a Water Enterprise Management Agreement and a Wastewater Enterprise Management Agreement, both dated as of February 6, 2002, with the Corona Utility Authority (“CUA”) for the maintenance, management and operation of those utility systems (collectively, the “CUA (CITY ATTY: 08-20)
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6 Management Agreements”). To the extent that this Agreement is deemed to be a "material contract" under either of the CUA Management Agreements, the following provisions shall apply: (1) City enters into this Agreement on behalf of the CUA and subject to the terms of the applicable CUA Management Agreement(s); and (2) Owner has no right to terminate this Agreement, either with or without cause, based upon the existence or non-existence of either or both of the CUA Management Agreements. Therefore, if an applicable CUA Management Agreement expires or terminates for any reason, Owner shall remain fully obligated to perform under this Agreement on behalf of the CUA or another third party contracted by the CUA for the maintenance, management and operation of the applicable utility system.
In recognition of the foregoing, the parties hereto have executed this Payment Plan and Lien Agreement on the day and year first stated above.
[SIGNATURES ON NEXT TWO PAGES]
(CITY ATTY: 08-20)
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7 CITY SIGNATURE PAGE TO
CITY OF CORONA
PAYMENT PLAN AND LIEN AGREEMENT
([***INSERT ADDRESS***])
CITY OF CORONA
By: _________________________
Tom Moody
Utilities Director
Approved as to Form:
By: _________________________
Dean Derleth
City Attorney
(CITY ATTY: 08-20)
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8 OWNER SIGNATURE PAGE TO
CITY OF CORONA
PAYMENT PLAN AND LIEN AGREEMENT
([***INSERT ADDRESS***])
[***INSERT OWNER’S NAME***]
By: _________________________
Signature
_________________________
Name (Print)
_________________________
Title (Print)
By: _________________________
Signature
_________________________
Name (Print)
_________________________
Title (Print)
(CITY ATTY: 08-20)
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9 EXHIBIT “A”
LEGAL DESCRIPTION/DEPICTION OF SUBJECT PROPERTY
[SEE ATTACHED [***WRITTEN NUMBER***] [(***NUMERIC NUMBER***)] OF PAGES]
(CITY ATTY: 08-20)
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10 EXHIBIT “B”
AMORTIZATION SCHEDULE
[SEE ATTACHED [***WRITTEN NUMBER***] [(***NUMERIC NUMBER***)] OF PAGES]