DATE: September 16, 2026
TO: Honorable Mayor and City Council Members
Honorable President and Board Members
FROM: Utilities Department
2026-049
REQUEST FOR CITY COUNCIL AND
CORONA UTILITY AUTHORITY ACTION
SUBJECT:
PAYMENT PLAN AND LIEN AGREEMENT FOR LATERAL WATER SERVICE RECONNECTION AT 1457 DEL NORTE DRIVE, CORONA, CA 92879
EXECUTIVE SUMMARY:
This staff report requests City Council approval of a payment plan and lien agreement with the property owner of 1457 Del Norte Drive to reimburse the City for reconnecting the property to the City’s water system. Restoring service requires excavation in the public right-of-way and installation of a new water service lateral from the City’s water main to the meter. Under the proposed agreement, the owner would repay the City over 24 months, and the unpaid balance would be secured by a lien against the property.
RECOMMENDED ACTION:
That the City Council:
a. Approve and authorize the City Manager, or his designee, to execute a payment plan and lien agreement for $7,775 with the property owner of 1457 Del Norte Drive for the cost of installing a new water service lateral and reconnecting the property to the City’s water system.
b. Approve an estimated revenue increase in the amount of $2,756.80 in the Water Utility Fund (FD_1570) for Fiscal Year 2027.
That the Corona Utility Authority review, ratify, and to the extent necessary, direct the City Council to take the above actions.
BACKGROUND & HISTORY:
The single-family residential property at 1457 Del Norte Drive had been occupied by a tenant since 2015. Water service was shut off for nonpayment, and City staff subsequently identified several instances of tampering with the service connection. To protect the water system and prevent unauthorized water use, staff disconnected service at the corporation stop rather than at the meter. The corporation stop is the valve at the water main that controls flow from the main to the service lateral. Disconnecting service at this location prevents water service from being restored without City involvement. The occupants have since vacated the property, and the owner has requested that the City restore water service so the property can be occupied again.
ANALYSIS:
Since the water service line to the property was disconnected at the corporation stop and a portion of the service lateral was removed, the City cannot restore service by turning water on at the meter. Reconnection requires excavation in the public right-of-way and installation of a new lateral from the water main to the property’s meter. Because the work is within the public right-of-way, the City must perform the work.
The property owner is responsible for the cost of reconnecting the property to the water system because the work is required to restore service to the private property. Staff estimates the reconnection cost, including excavation, materials, and installation, at $7,775. The owner has requested a payment plan to spread the cost over time rather than pay the full amount up front.
Staff recommends that the City complete the reconnection work and have the owner repay the cost through a payment plan and lien agreement. Based on the attached amortization schedule, the proposed payment plan would finance $7,775 over 24 months at 6% annual interest, with monthly payments of approximately $344.60. The agreement would be recorded against the property, and the lien would remain in place until the principal and interest are paid in full. This structure is consistent with the payment plan and lien approach the City has used in prior utility connection cases.
FINANCIAL IMPACT:
Approval of the recommended actions will result in an estimated revenue increase in the amount of $2,756.80 in the Water Utility Fund (FD_1570) for Fiscal Year 2027. Based on the amortization schedule, the City is expected to recover $8,270.22 over the 24-month repayment period, consisting of $7,775 in principal and approximately $495.22 in interest. Payments will be secured by the recorded lien, and interest revenue will be deposited into Water Utility Fund (FD_1570).
ENVIRONMENTAL ANALYSIS:
This action is categorically exempt pursuant to Section 15301 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 involves repairs to existing infrastructure to maintain public health and safety and is exempt from CEQA requirements. Therefore, no environmental analysis is required.
PREPARED BY: JACQUELINE ZUKERAN, UTILITY BILLING AND ADMINISTRATION MANAGER REVIEWED BY: TOM MOODY, DIRECTOR OF UTILITIES
ATTACHMENT:
1. Exhibit 1 – Payment Plan Agreement