DATE: September 16, 2026
TO: Honorable Mayor and City Council Members
Honorable President and Board Members
FROM: Utilities Department
2026-048
REQUEST FOR CITY COUNCIL AND
CORONA UTILITY AUTHORITY ACTION
SUBJECT:
EMERGENCY REMEDIATION AND RECONSTRUCTION WORK AT HOMES IMPACTED BY WATER MAIN BREAKS EXECUTIVE SUMMARY:
This staff report asks City Council to approve a new agreement and to amendment an existing agreement with Shapiro Property Service Corporation (d.b.a. Paul Davis Restoration of the Inland Empire), and authorize an appropriation in the amount of $615,000 from the Water Utility Fund (FD_1570). This action funds critical damage mitigation and reconstruction at homes impacted by flooding during two unrelated water main breaks.
RECOMMENDED ACTION:
That the City Council:
a. Approve a Maintenance and General Services Agreement with Shapiro Property Service Corporation dba Paul Davis Restoration of the Inland Empire in the amount of $132,409.87 for remediation and reconstruction services at two homes on Marilyn Drive. b. Approve an amendment to the Maintenance and General Services Agreement with Shapiro Property Service Corporation dba Paul Davis Restoration of the Inland Empire in the amount of $134,734.95 for a total of $165,704.28 for remediation and reconstruction services at one home on Third Street.
c. Authorize the City Manager, or his designee, to execute the Maintenance and General Services Agreement with Shapiro Property Service Corporation dba Paul Davis Restoration of the Inland Empire, for two homes on Marilyn Drive for $132,409.87, including the ability to negotiate and execute non-substantive changes and extensions, purchase orders and amendments up to $26,482 or 20% of the contract amount.
d. Authorize the City Manager, or his designee, to execute an amendment with Shapiro Property Service Corporation dba Paul Davis Restoration of the Inland Empire, for one home on Third Street for $134,734.95 for a total contract amount of $165,704.28, including the ability to negotiate and execute non-substantive changes and extensions, purchase orders and amendments up to $33,141 or 20% of the contract amount.
e. Authorize the City Manager, or his designee, to issue a Purchase Order to Shapiro Property Service Corporation dba Paul Davis Restoration of the Inland Empire, for two homes on Marilyn Drive for $132,409.87. f. Authorize the City Manager, or his designee, to issue an increase to the Purchase Order to Shapiro Property Service Corporation dba Paul Davis Restoration of the Inland Empire, for one home on Third Street by $134,734.95 for a total of $165,704.28. g. Make a determination under Corona Municipal Code Section 3.08.140(A) that competitive bidding is not required for these purchases based upon the reasons provided in the “Basis for Exception to Competitive Bidding” section of this agenda report. h. Authorize the creation of a new Operating and Maintenance Project titled “Remediation of Residential Homes Impacted by Main Breaks.” i. Authorize an appropriation in the amount of $615,000 from the Water Utility Fund (FD_1570) to the new Operating and Maintenance project titled “Remediation of Residential Homes Impacted by Main Breaks.” That the Corona Utility Authority review, ratify, and to the extent necessary, direct the City Council to take the above actions.
BACKGROUND & HISTORY:
The Utilities Department is responsible for the maintenance of approximately 862 miles of water pipeline, 66 miles of reclaimed water pipeline, and 462 miles of sewer pipeline. Main breaks occur at times throughout the system, which can result in flooding. In most circumstances, homes and buildings are set at a higher elevation than water and sewer lines; however, there are circumstances where homes are at a lower elevation than surrounding water and sewer lines, increasing the risk of flooding.
On May 21, 2026, a water main break occurred in an alley on Third Street. Flooding from the main break impacted the home closest to the break.
The residents of the home were immediately set up with lodging, and a flood remediation contractor was called out to mitigate the damage. Three bids were requested for content pack out, demolition, and asbestos/lead testing and treatment, which has now been completed by two contractors, Shapiro Property Service Corporation dba Paul Davis Restoration of the Inland Empire (Paul Davis) and Exclusive Property Restoration and Construction, Inc. dba Team Delta (Team Delta). Three separate bids were received for reconstruction, and Paul Davis was selected. As a result, the Purchasing Division, with concurrence of the City Manager, approved an agreement for $30,969.33 for the initial work at the Third Street home.
Reconstruction efforts are currently underway.
On July 17, 2026, a water main break occurred in Marilyn Drive, which caused flooding in two separate homes. One home saw a significant impact, and residents were provided lodging and boarding for their pets. The second home was only impacted in a small section of their home, and lodging was not required. Paul Davis was selected through an exception to bid on an emergency basis to proceed with mitigation and reconstruction on both homes.
ANALYSIS:
These homes required immediate mitigation efforts in an attempt to limit water damage and secondary damage. Additionally, staff coordinated asbestos testing in order to comply with relevant air quality regulations. The homes will also require reconstruction in order to return them to the pre-existing condition. Staff recommends issuing agreements and purchase orders to Shapiro Property Service Corporation dba Paul Davis Restoration of the Inland Empire (Paul Davis) to complete the work at these homes.
BASIS FOR EXCEPTION TO COMPETITIVE BIDDING:
Staff believes that an exception to competitive bidding is warranted for this action pursuant to Corona Municipal Code Section 3.08.140(A), which states as follows:
3.08.140(A) Emergencies when the purchasing agent and the authorized contracting party, with the approval of the City Manager, determine that an emergency exists, as defined in section 3.08.010.
Staff believes this work warrants an exception to bid due to the urgent nature of the work. Two families and their pets have been displaced from their homes. The City continues to pay lodging, pet boarding and per diem costs to these families while they are displaced. It is in the best interest of the families and the City to complete mitigation and reconstruction as soon as possible.
The Utilities Department has received reasonable pricing from Paul Davis and has been satisfied with the professionalism, prompt response, and work to date they have provided.
The Utilities Department also requests additional change order authority for both agreements up to 20% of the total contract amounts. Remediation and reconstruction work can be unpredictable, and the Utilities Department needs to ensure the customers return to their homes as soon as possible.
If any unexpected items come up during reconstruction, the Utilities Department requests the ability to approve necessary change orders up to 20% with the City Manager’s authorization.
The Utilities Department requests an appropriation of $615,000 from the Water Utility Fund (FD_1570) for all related costs for the three homes, including remediation, content removal, asbestos/lead testing and remediation, reconstruction, lodging, pet boarding, per diem, mileage, estimated damaged property reimbursement, and 20% contingency.
In order to complete the remaining remediation and reconstruction work at the Third Street and Marilyn Drive homes, the Utilities Department requests approval of a new Maintenance and General Services Agreement (MGSA) with Paul Davis for two homes on Marilyn Drive in the amount of $132,409.87 and an amendment to an existing agreement with Paul Davis for one home on Third Street in the amount of $134,734.95. The Utilities Department also requests an appropriation of $615,000 from the Water Utility Fund (FD_1570) to the newly created Operation and Maintenance Project titled “Remediation of Residential Homes Impacted by Main Breaks.” FINANCIAL IMPACT:
Approval of the recommended actions will result in an appropriation in the amount of $615,000 from the Water Utility Fund (FD_1570) to the newly created Operating and Maintenance Project titled “Remediation of Residential Homes Impacted by Main Breaks.” There is sufficient working capital in the Water Utility Fund (FD_1570) for the recommended action.
ENVIRONMENTAL ANALYSIS:
This action is categorically exempt pursuant to Section 15302 (c) of the Guidelines for the California Environmental Quality Action (CEQA), which states that “operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the CEQA determination” and is therefore exempt from CEQA. This action consists of remediation and reconstruction for existing private residential properties and therefore, is exempt from the requirements of CEQA. No environmental analysis is required.
PREPARED BY: ERIN KUNKLE, MAINTENANCE MANAGER
REVIEWED BY: TOM MOODY, UTILITIES DIRECTOR
ATTACHMENTS:
1. Exhibit 1 – Paul Davis MGSA for Marilyn Drive
2. Exhibit 2 – Paul Davis MGSA for Third Street
3. Exhibit 3 – Paul Davis First Amendment for Third Street