DATE: October 7, 2026
TO: Honorable Mayor and City Council Members
Honorable President and Board Members
FROM: Planning and Development Department
2026-077
REQUEST FOR CITY COUNCIL AND
CORONA UTILITY AUTHORITY ACTION
SUBJECT:
RESOLUTION APPROVING A REIMBURSEMENT AGREEMENT FOR A WATER
MAIN EXTENSION IN STATE STREET, NORTH OF MARLIN WAY
EXECUTIVE SUMMARY:
This staff report asks the City Council to approve a Reimbursement Agreement and establish a Capital Improvement Project to facilitate the construction of a public water main extension on State Street.
RECOMMENDED ACTION:
That the City Council:
a. Adopt Resolution No. 2026-098, establishing the reimbursement of 77% of eligible Total Costs to construct the water main extension on State Street, north of Marlin Way, with future cost recovery from benefiting parcels. b. Authorize the City Manager, or his designee, to execute the Reimbursement Agreement for Water Main Extension with Betty S. Madsen, and to take all actions necessary to implement the agreement.
c. Authorize the creation of a new Capital Improvement Project titled “State Street Water Main Extension”.
d. Authorize an appropriation in the amount of $128,860 from the Water Capacity Fund (FD_1507) to the new project titled “State Street Water Main Extension” for the reimbursement of eligible costs in accordance with the Reimbursement Agreement.
e. Authorize the City Manager, or his designee, to adjust the budget based on final verified eligible costs.
That the Corona Utility Authority review, ratify, and to the extent necessary, direct the City Council to take the above actions.
BACKGROUND & HISTORY:
The subject property, 18556 State Street, is located approximately 310 feet north of the intersection of State Street and Marlin Way, within Riverside County. The area where the subject property is located includes parcels that have not previously been served by a public water main, which has limited the ability of property owners to access City water service. Currently, there is no existing public water main extending along State Street to the north of Marlin Way, which means that properties in this area cannot connect to the City’s water system under standard conditions. As a result, property owners have faced challenges in obtaining reliable water service, and meeting City requirements for development or redevelopment.
Corona Municipal Code (CMC) 13.14.070, Subsection A, requires applicants for new water service to construct a new water main to City standards along the entire property frontage, when a water main does not currently exist. The proposed 378-foot water main extension will address the missing water access by installing new public water infrastructure along State Street, and providing water service to 18556 State Street. This water improvement will provide direct access to City water service for the properties on that corridor, supporting both current needs and future development opportunities. The extension is expected to enhance water reliability, improve fire protection capabilities, and increase the overall value and utility of the properties along this corridor.
The request for a reimbursement agreement was initiated by the property owner of 18556 State Street, who is seeking to advance the costs of constructing the water main extension. Under this arrangement, the owner will fund the installation of the new water main, and the City will provide a mechanism for reimbursement of eligible costs, in accordance with applicable municipal code provisions and established City practices.
This approach allows the necessary infrastructure to be installed in a timely manner, while also ensuring that the financial responsibility for the improvement is shared equitably among those who benefit from the new water service.
ANALYSIS:
Under the proposed reimbursement agreement, the property owner will be responsible for the design, permitting, and construction of the water main extension. The City will review and verify Total Costs, including compliance with Prevailing Wage Laws and the California Department of Industrial Relations requirements, and reimburse the property owner the City’s share, upon acceptance and approved documentation. The City has no construction role beyond its regulatory approvals and reimbursement administration.
Previous connections on other properties along this corridor were not required to construct frontage main extensions. Therefore, the agreement provides City reimbursement to the property owner up to 77% of the Total Costs to construct.
Accordingly, the property owner is obligated to pay 23% of the Total Costs, which was determined based on the length of their property frontage compared to the overall length of the project. Although such scenario is not anticipated in the near future, the reimbursement structure provides for future recovery of the City’s share from benefiting parcels that would be required to connect to the extended water main. The benefiting parcels, identified as APN 278-230-018 and APN 278-230-022, would be required to pay fair shares of 35% and 9%, respectively, also based on the length of their property frontage compared to the overall length of the project. The City would cover the remaining 33% of the fair share.
Any future development or utility connection would occur under County jurisdiction and solely at the discretion of the respective property owners. Staff review of available parcel information indicates that development activity may not be imminent due to topographical challenges associated with the properties. While the City cannot forecast any development outcome, the reimbursement mechanism will provide structure for recovering costs should additional connections occur at a future date.
FINANCIAL IMPACT:
Approval of the recommended actions will result in an appropriation in the amount of $128,860 from the Water Capacity Fund (FD_1507) to the new project titled “State Street Water Main Extension” for the reimbursement of eligible costs in accordance with the Reimbursement Agreement. The final appropriation may be adjusted based on verified eligible costs in accordance with the executed agreement and applicable municipal code requirements. There is sufficient working capital available for the recommended actions.
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 commonsense 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 approves a resolution and agreement for reimbursements of costs associated with a ministerial permit, and there is no possibility that approving this project will have a significant effect on the environment. Therefore, no environmental analysis is required.
PREPARED BY: NOE HERRERA, P.E., SENIOR ENGINEER
REVIEWED BY: JOEL BELDING, PLANNING AND DEVELOPMENT DIRECTOR REVIEWED BY: TOM MOODY, UTILITIES DIRECTOR
ATTACHMENTS:
1. Exhibit 1 – Resolution No. 2026-098
2. Exhibit 2 – Reimbursement Agreement for Water Main Extension