Norco City Council
April 17, 2024

REVISED - AGENDA
City Council
Wednesday, April 17, 2024
City Council Chamber – Norco City Hall
2820 Clark Avenue, Norco, CA 92860
CALL TO ORDER 5:30 PM
ROLL CALL Kevin Bash, Mayor
Greg Newton, Mayor Pro Tem
Katherine Aleman, Council Member
Robin Grundmeyer, Council Member
Berwin Hanna, Council Member

CLOSED SESSION
54954.5 CONFERENCE WITH LABOR NEGOTIATOR
Agency designated representatives: City Manager Sassoon Employee organization: Norco General Employees Association, Utility Workers Union of America, AFL-CIO Local 606, Unrepresented Employees: MidManagement, Confidential, and Management Employees

CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Property: APN: 126-050-002, 126-050-004 & 129-380-010
Agency negotiator: City Manager
Negotiating Parties: City of Norco
Under negotiation: Price and terms of payment

CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Property: APN 130-134-002
Agency negotiators: City Manager
Negotiating parties: City of Norco
Under negotiation: Price and Terms

NEW - CONFERENCE WITH LEGAL COUNSEL- ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Section 54956.9: 1 Potential Case - Letter from Shenkman & Hughes RECONVENE PUBLIC SESSION 7:00 PM

REPORT OF ACTION(S) TAKEN IN CLOSED SESSION
PLEDGE OF ALLEGIANCE Council Member Aleman

INVOCATION
City Council Agenda - April 17, 2024
PRESENTATIONS City of Norco Youth Basketball B
Division All-Star Team Recognition
National Volunteer Month
Proclamation
DMV Donate Life Month Proclamation
Award of Excellence in Design for The
Barn at Ingalls Event Center
IREN Norco Energy Resilience
Roadmap

1. CITY COUNCIL REPORTS ON REGIONAL BOARDS

2. PUBLIC COMMENTS
This is the time when persons wishing to address the presiding governmental body regarding the Consent Calendar, Legislative Matters or items within the subject matter jurisdiction of the legislative body. Please submit a speaker card to the Meeting Clerk. Please limit comments to three minutes or less. The Ralph M. Brown Act limits the governmental body’s ability to respond to comments on non-agendized matters at the time such comments are made. The governmental body shall not discuss or act relative to any general public comment.

3. CONSENT CALENDAR
All items listed under the Consent Calendar are considered to be routine and may be enacted by one motion. Prior to the motion to consider any action by the presiding governmental body, any public comments on any of the Consent Items will be heard. There will be no separate action unless members of the governmental body request specific items be removed from the Consent Calendar. Items removed from the Consent Calendar will be separately considered under Item 4 of the Agenda.

3.A. Waive Reading of all Ordinance Adoptions on this Agenda and Read by Title Only.

RECOMMENDATION:

Waive reading, by title only, of all Ordinances and Resolutions. Said Ordinances and Resolutions which appear on the agenda shall be determined to have been read by title and further reading waived.

Staff Report - Pdf

City Council Agenda - April 17, 2024

3.B. Approval of City Council Regular Meeting Minutes.

RECOMMENDATION:

Approve the City Council Regular Meeting Minutes of April 3, 2024.

Staff Report - Pdf

3.C. Terms and Conditions for Construction, Operations, and Maintenance Agreements for Recycled Water Infrastructure at WRCRWA.

RECOMMENDATION:

Approve the Terms and Conditions for Construction, Operations, and Maintenance of the WRCRWA Recycled Water Pump Station and On-site Reservoir and for the Construction, Operations, and Maintenance of the Northerly Recycled Water Pipeline.

Staff Report - Pdf

3.D. Approval of request for the advancement of Fiscal Year 2024-25 Community Development Block Grant Funds for the Pikes Peak Park ADA Synthetic Poured in Place Surface Project
RECOMMENDATION:

Approve the request for the advancement of Fiscal Year 2024-25 Community Development Block Grant Funds for the Pikes Peak Park ADA Synthetic Poured in Place Surface Project
Staff Report - Pdf

City Council Agenda - April 17, 2024

3.E. Consider resolutions for ordering the preparation of the Engineer's Report for Landscape Maintenance Districts 1,2,3, 4 and 5
RECOMMENDATION:

Adopt Resolution No. 2024-12 - A Resolution of the City Council of the City of Norco, California, Ordering the Preparation of the Engineer’s Report for Landscape Maintenance District No. 1 (Beazer, Tract 28765) to Establish Annual Assessments for Fiscal Year 2024-2025
Adopt Resolution No. 2024-13 - A Resolution of the City Council of the City of Norco, California, Ordering the Preparation of the Engineer’s Report for Landscape Maintenance District No. 2 (Western Pacific, Tract 25779) to Establish Annual Assessments for Fiscal Year 2024-2025
Adopt Resolution No. 2024-14 - A Resolution of the City Council of the City of Norco, California, Ordering the Preparation of the Engineer’s Report for Landscape Maintenance District No. 3 (Centex, Tract 28626) to Establish Annual Assessments for Fiscal Year 2024-2025.

Adopt Resolution No. 2024-15 - A Resolution of the City Council of the City of Norco, California, Ordering the Preparation of the Engineer’s Report for Landscape Maintenance District No. 4 (Norco Ridge Ranch, Tracts 29588 and 29589) to Establish Annual Assessments for Fiscal Year 2024- 2025.

Adopt Resolution No. 2024-16 - A Resolution of the City Council of the City of Norco, California, Ordering the Preparation of the Engineer’s Report for Landscape Maintenance District No. 5 (Hawks Crest – Tract 30230) to Establish Annual Assessments for Fiscal Year 2024-2025.

Staff Report - Pdf

3.F. Annual Adoption of the City Investment Policy
RECOMMENDATION:

Approve and Adopt Resolution 2024-18, Investment Policy.

Staff Report - Pdf

3.G. Quarterly Investment Report for Quarter Ended March 31, 2024 RECOMMENDATION:

Receive and file the Quarterly Investment Report for the Quarter Ended March 31, 2024.

Staff Report - Pdf

City Council Agenda - April 17, 2024

3.H. Approval of the City of Norco's Pedestrian and Bicycle Master Plan RECOMMENDATION:

Adopt the City of Norco Pedestrian and Bicycle Master Plan.

Staff Report - Pdf

3.I. Acceptance of the Wayne Makin LED Lighting Upgrade Project as Complete
RECOMMENDATION:

Accept the Wayne Makin LED Lighting Upgrade Project as complete and authorize the City Clerk to file a Notice of Completion with the County of Riverside.

Staff Report - Pdf

3.J. Award Professional Services Contract for a Comprehensive Development Impact Study
RECOMMENDATION:

Award contract to Willdan Financial Services for Comprehensive Development Impact Fee Study in the amount of $52,860; and authorize the City Manager to approve contract contingency up to 10 percent of the total proposal amount.

Staff Report - Pdf

3.K. Recap of Actions Taken by the Planning Commission at its Meeting Held on April 10, 2024
RECOMMENDATION:

Receive and file the recap of actions taken by the Planning Commission at its meeting held on April 10, 2024.

Staff Report - Pdf

3.L. Approve Salary Range for Community Development Specialist and Senior Community Specialist.

RECOMMENDATION:

Adopt Resolution No. 2024-17 to approve the salary range for Community Development Specialist and Senior Community Specialist.

Staff Report - Pdf

City Council Agenda - April 17, 2024

3.M. Cooperative Funding Agreement between the City of Norco and the Riverside County Flood Control & Water Conservation District for the Norco MDP Line S-5E Storm Drain Project
RECOMMENDATION:

Approve the Cooperative Funding Agreement between the City of Norco and Riverside County Flood Control & Water Conservation District (RCFC&WCD) to design and construct the Norco MDP Line S-5E Storm Drain Project, subject to non-substantive changes and approval by the Riverside County Board of Supervisors; and authorize the Mayor to execute the agreement.

Staff Report - Pdf

3.N. Cooperative Funding Agreement between the City of Norco and the Riverside County Flood Control & Water Conservation District for the Norco Minor Storm Drain Improvements Project (Parkridge Avenue and North Drive)
RECOMMENDATION:

Approve the Cooperative Funding Agreement between the City of Norco and Riverside County Flood Control & Water Conservation District (RCFC&WCD) to design and construct the Norco Minor Storm Drain Improvements Project (Parkridge Avenue and North Drive), subject to nonsubstantive changes and approval by the Riverside County Board of Supervisors; and authorize the Mayor to execute the agreement.

Staff Report - Pdf

3.O. Cooperative Funding Agreement between the City of Norco and the Riverside County Flood Control & Water Conservation District for the Norco Citation Drive Storm Drain Project
RECOMMENDATION:

Approve the Cooperative Funding Agreement between the City of Norco and Riverside County Flood Control & Water Conservation District (RCFC&WCD) to design and construct the Norco Citation Drive Storm Drain Project, subject to non-substantive changes and approval by the Riverside County Board of Supervisors; and authorize the Mayor to execute the agreement.

Staff Report - Pdf

City Council Agenda - April 17, 2024

3.P. Cooperative Funding Agreement between the City of Norco and the Riverside County Flood Control & Water Conservation District for the Norco MDP Line S-1B Storm Drain Project
RECOMMENDATION:

Approve the Cooperative Funding Agreement between the City of Norco and Riverside County Flood Control & Water Conservation District (RCFC&WCD) to design and construct the Norco MDP Line S-1B Storm Drain Project, subject to non-substantive changes and approval by the Riverside County Board of Supervisors; and authorize the Mayor to execute the agreement.

Staff Report - Pdf

3.Q. Cooperative Funding Agreement between the City of Norco and the Riverside County Flood Control & Water Conservation District for the Norco MDP Line S-1C Storm Drain Project
RECOMMENDATION:

Approve the Cooperative Funding Agreement between the City of Norco and Riverside County Flood Control & Water Conservation District (RCFC&WCD) to design and construct the Norco MDP Line S-1C Storm Drain Project, subject to non-substantive changes and approval by the Riverside County Board of Supervisors; and authorize the Mayor to execute the agreement.

Staff Report - Pdf

3.R. Acceptance of Tender Agreement, bid and award of Contract for the MDP Line N-5 Storm Drain Project
RECOMMENDATION:

Approve the Tender Agreement between the City and Philadelphia Indemnity Insurance Company; award a contract to Riverside Construction Company, Inc. for construction of the MDP Line N-5 Storm Drain Project in the amount of $2,669,917; approve the appropriation as noted in the staff report; and authorize the City Manager to approve contract change orders up to 10 percent of the total bid amount.

Staff Report - Pdf

City Council Agenda - April 17, 2024

3.S. Acceptance of Contract and Additional Appropriation of Funds for the Moreno Arena Bleacher Replacement Project
RECOMMENDATION:

Award Contract to Herk Edwards Inc. for the procurement of materials, demolition of existing bleachers, and installation of a new 25 row bleacher system for the Moreno Arena Bleacher Replacement Project in the amount of $1,117,162; and approve the additional Measure R appropriation for the project in the amount of $962,000 for an estimated total project cost of $1,562,000.

Staff Report - Pdf

4. ITEM(S) PULLED FROM CONSENT CALENDAR

5. LEGISLATIVE MATTERS
No new evidence will be heard from the public as the public hearing has been closed regarding the items listed. If new substantial amendments are made to the Ordinance at this time, the Ordinance will require a "Third" reading and public comments will be allowed.

5.A. Second Reading: Ordinance to Amend Chapter 2.27 of the Municipal Code, Section 2.27.030 Appointment of Members to the Veterans Commission.

RECOMMENDATION:

Adopt Second Reading: Ordinance No. 1112 to Amend Chapter 2.27 of the Municipal Code, adding language to Section 2.27.030 Appointment of Members to the Veterans Commission.

Staff Report - Pdf

6. PUBLIC HEARING(S)
Order of Presentation for Public Hearing Items:

1. Staff Report Presentation

2. Council Questions of Staff

3. Open Public Hearing
a. Public Comment

4. Close Public Hearing

5. Council Discussion and Action

City Council Agenda - April 17, 2024

6.A. Zone Code Amendment 2024-02 (City of Norco): A City initiated amendment to Title 18, Chapter 18.13 (A-1 Zone Agricultural Low Density), and Title 18, Chapter 18.30 (General Provisions – Miscellaneous) adding Farmworker Housing as a permitted use and establishing Farmworker Housing development standards as required in the City’s certified Housing Element.

RECOMMENDATION:

Adopt Ordinance No. 1114, approving Zone Code Amendment 2024-02.

Staff Report - Pdf

6.B. Code Amendment 2024-01 (City of Norco) - A City initiated amendment to Title 15, Section 15.30.020 "Hours of Construction Activity" and Title 9, Section 9.07.20 "Noise Regulations, Exemptions", to clarify the allowable hours of construction for building projects in the City of Norco.

RECOMMENDATION:

Continue the Public Hearing to the Regular Scheduled City Council Meeting on May 15, 2024.

Staff Report - Pdf

7. CITY COUNCIL / STAFF COMMUNICATIONS

8. ADJOURNMENT
In compliance with the Americans with Disabilities Act, any person who requires a modification or accommodation in order to participate in this meeting is encouraged to contact the City Clerk’s Office at (951) 270-5623 or [email protected] at least 48 hours prior to the meeting so that reasonable arrangements can be made to ensure accessibility. Staff reports are on file in the City Clerk’s Office.

Any writings or documents provided to a majority of the presiding governmental body regarding any item on this agenda will be available for public inspection at the City Clerk’s Office during normal business hours at Norco City Hall, located at 2870 Clark Avenue in Norco. The meeting is recorded.

City Council

STAFF REPORT
Date: April 17, 2024 Agenda Item:

3.A.

To: Honorable Mayor and City Council Members
From: Dana Roa, City Clerk
Prepared By: Sophia Thompson, Deputy City Clerk
Department: City Clerk
SUBJECT:

Waive Reading of all Ordinance Adoptions on this Agenda and Read by Title Only.

RECOMMENDATION:

Waive reading, by title only, of all Ordinances and Resolutions. Said Ordinances and Resolutions which appear on the agenda shall be determined to have been read by title and further reading waived.

REVIEWED AND APPROVED BY:

City Council

STAFF REPORT
Date: April 17, 2024 Agenda Item:

3.B.

To: Honorable Mayor and City Council Members
From: Dana Roa, City Clerk
Prepared By: Sophia Thompson, Deputy City Clerk
Department: City Clerk
SUBJECT:

Approval of City Council Regular Meeting Minutes.

RECOMMENDATION:

Approve the City Council Regular Meeting Minutes of April 3, 2024.

REVIEWED AND APPROVED BY:

Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney ATTACHMENT(S):

City Council - Apr 03 2024 - DRAFT Minutes

DRAFT - MINUTES
City Council
Wednesday, April 3, 2024
City Council Chamber – Norco City Hall
2820 Clark Avenue, Norco, CA 92860
CALL TO ORDER 4:30 PM
ROLL CALL Kevin Bash, Mayor
Greg Newton, Mayor Pro Tem
Katherine Aleman, Council Member
Robin Grundmeyer, Council Member
Berwin Hanna, Council Member
WORKSHOP Bicycle Master Plan
A. Review of City of Norco's Draft Pedestrian and Bicycle Master Plan Public Works Director Blais presented the item and introduced Alta Consultant, Tim Bevins, to present PowerPoint outlining the Norco Pedestrian and Bicycle Master Plan.

Consultant Bevins presented the City of Norco Pedestrian and Bicycle Master Plan.

City Manager Sassoon and Consultant Bevins answered questions and addressed concerns from the Mayor and City Council.

Mayor Bash opened Public Comment.

Jim Pollard spoke regarding not having bike lanes on Sixth Street, the installation of lighting near the schools and having bike lanes on Hamner Ave from Eastvale to the Metrolink in Corona.

Bill Naylor spoke regarding bike lanes on Hamner Ave and the widening of Hamner Ave and other streets to accommodate bike lanes. He agreed with the Consultant on the recommendation to not have bike lanes on Sixth Street and spoke regarding bike lanes on River Drive.

Bonnie Slager spoke regarding curb extensions being a problem for horse trailers and the already narrow streets. She commented on the River Drive trail fencing as a barrier and the lack of bike racks at City Hall. She also agreed with the Consultants on not having bike lanes on Sixth Street.

City Council Minutes - April 3, 2024
Mayor Bash closed Public Comment.

Following discussion and without formal motion, City Council provided feedback to Consultant Bevins on the Pedestrian and Bicycle Master Plan.

CLOSED SESSION
Mayor Bash adjourned to Closed Session at 5:55 PM.

CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Property: Silverlakes Sports Park
Agency negotiators: City Manager, Finance Director, Planning Director Negotiating parties: City of Norco and Balboa Management Group LLC.

Under negotiation: Price and Terms

CONFERENCE WITH REAL PROPERTY NEGOTIATION
Property: APN:133-200-022
City Negotiator: City Manager
Under Negotiation: Price and Terms

CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
Paragraph (1) of subdivision (d) of Section 54956.9
Name of case: In the Matter of the Application of Southern California Edison Company (U338E) for a Certificate of Public Convenience and Necessity for the RTRP Transmission Project. A.15-04-013

CONFERENCE WITH LEGAL COUNSEL - INITIATION OF LITIGATION Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9: 1 Potential Case
RECONVENE PUBLIC SESSION 7:00 PM

REPORT OF ACTION(S) TAKEN IN CLOSED SESSION
City Attorney Burns stated that there were no reportable actions taken in Closed Session.

PLEDGE OF ALLEGIANCE Mayor Pro Tem Newton
INVOCATION Council Member Grundmeyer
PRESENTATIONS Norco College Update by Dr. Monica
Green

City Council Minutes - April 3, 2024
Dr. Monica Green provided an update on Norco College and answered questions from the City Council.

1. CITY COUNCIL REPORTS ON REGIONAL BOARDS
The Mayor, Mayor Pro Tem and Council Members provided reports on their recent individual participation in committees, commissions, regional boards, and community organizations.

2. PUBLIC COMMENTS
Bill Naylor spoke regarding his concern for more items to be brought to the Commissions before being brought to City Council for community input and further discussion.

3. CONSENT CALENDAR
Approval of Consent Calendar as presented.

M/S NEWTON/GRUNDMEYER Approve Consent Calendar as presented. The Motion was carried by the following roll call vote:

AYES: BASH, NEWTON, ALEMAN, GRUNDMEYER, AND HANNA
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE

3.A. Waive Reading of all Ordinance Adoptions on this Agenda and Read by Title Only.

Action: Waived reading, by title only, of all Ordinances and Resolutions. Said Ordinances and Resolutions which appear on the agenda shall be determined to have been read by title and further reading waived.

3.B. Approval of City Council Regular Meeting Minutes and Special Meeting Minutes.

City Council Minutes - April 3, 2024
Action: Approved the City Council Regular Meeting Minutes of March 20, 2024 and Special Meeting Minutes of March 13, 2024.

3.C. Purchase of 2025 Freightliner M2-106 Service Truck from PB Loader Corporation
Action: Accepted the quote from PB Loader Corporation, Fresno, CA, for one (1) 2025 Freightliner M2-106 Service Truck, authorized the City Manager to approve a purchase order in the amount of $237,338, and appropriated an additional $18,000 split evenly between the Water and Sewer Funds to fund the additional cost of the new service vehicle.

3.D. Additional Appropriation of Funds for the Citywide Flooring Project Action: Approved the additional contract amount of $21,500 for the change orders in excess of the original contract amount and the 10% authorized by the City Manager for costs associated with the addition of the flooring replacement at the Heritage Room.

3.E. Cooperative Funding Agreement between the City of Norco and the Riverside County Flood Control & Water Conservation District for the First Street Storm Drain Project
Action: Approved the Cooperative Funding Agreement between the City of Norco and Riverside County Flood Control & Water Conservation District (RCFC&WCD) to design and construct the First Street Storm Drain Project, subject to non-substantive changes and approval by the Riverside County Board of Supervisors; and authorized the Mayor to execute the agreement.

3.F. Amend the 2023-24 Measure R Capital Improvement Project Budget to Add Design Funding for Five Street Pavement Projects
Action: Amended the fiscal year 2023-24 Measure R Capital Improvement Budget to appropriate five street pavement projects to the FY 2023-24 Measure R Capital Improvement Program Budget; allocated Measure R Funding for the design costs for each project in the amount requested for each project; accepted the proposals from RKA and authorized the City Manager to issue purchase orders for each project not to exceed the amount quoted in each project proposal.

4. ITEM(S) PULLED FROM CONSENT CALENDAR
There were no items pulled from the Consent Calendar.

City Council Minutes - April 3, 2024

5. DISCUSSION / ACTION ITEM(S)

5.A. Discussion on Code of Ethics and possible updates
City Clerk Roa introduced the discussion and called upon Administrative Intern Gabriel Blum to present PowerPoint.

Administrative Intern Blum presented report.

City Council Members had questions and concerns.

City Attorney Burns and City Clerk Roa answered questions and addressed concerns.

Mayor Bash opened Public Comment.

Tami Friedrich spoke about the possibility of putting together a Board of Ethics Committee to review complaints of conduct about City Council, Commission Members and City Staff.

Michael Thompson spoke regarding defining opinion versus fact.

Mayor Bash closed Public Comment.

Mayor and City Council Members discussed opinions versus facts and the history of the Code of Ethics along with enforcement when a violation of the Code of Ethics occurs.

Mayor and City Council Members asked that a draft be made with updates to the Code of Ethics including violations and enforcement options and be brought back to City Council for further discussion.

Following discussion, motion was made.

M/S NEWTON/GRUNDMEYER to have the City Attorney return with enforcement options and updates of violations to the Code of Ethics and have a draft brought back to City Council for review. The Motion was carried by the following roll call vote:

AYES: BASH, NEWTON, ALEMAN, GRUNDMEYER, AND HANNA
NOES: NONE
ABSENT: NONE

City Council Minutes - April 3, 2024
ABSTAIN: NONE

5.B. Discuss possible actions to encourage Corona-Norco Unified School District to include funding for Norco High School programs and facilities City Clerk Roa introduced the discussion.

Mayor Bash clarified his reasoning for having this item brought to City Council for discussion.

Mayor and City Council Members discussed the School Districts Invision 2033 Report and the support needed for the schools in Norco.

Mayor Bash opened Public Comment.

There were no public comments at this time.

Mayor Bash closed Public Comment.

Mayor and City Council Members asked that the draft Invision 2033 Report, the budget and a draft letter be brought back to City Council for review.

Following discussion, motion was made.

M/S BASH/HANNA to have the Invision 2033 Report, 2024-2025 budget and draft letter brought back to City Council for review. The Motion was carried by the following roll call vote:

AYES: BASH, NEWTON, ALEMAN, GRUNDMEYER, AND HANNA
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE

6. PUBLIC HEARING(S)

6.A. First Reading: Ordinance to Amend Chapter 2.27 of the Municipal Code, Section

2.27.030 Appointment of Members to the Veterans Commission.

City Clerk Roa presented the report on Ordinance No. 1112.

City Council Minutes - April 3, 2024
Mayor Bash commented on the reason for having the amendment brought to City Council.

Mayor Bash opened Public Comment.

Geoff Kahan, Chair of the Veterans Commission, spoke regarding his support of the amendment to the Appointment of Members to the Veterans Commission.

Mayor Bash closed Public Comment.

Motion was made and City Attorney Burns read the title of the Ordinance into the record.

M/S NEWTON/ALEMAN Adopt First Reading: Ordinance No. 1112 to Amend Chapter 2.27 of the Municipal Code, adding language to Section 2.27.030 Appointment of Members to the Veterans Commission. The Motion was carried by the following roll call vote:

AYES: BASH, NEWTON, ALEMAN, GRUNDMEYER, AND HANNA
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE

7. CITY COUNCIL / STAFF COMMUNICATIONS
Council Member Grundmeyer thanked staff for their hard work on the Easter Egg Hunt and quick changes due to the rain.

Council Member Aleman thanked staff for the Easter Egg Hunt and stated it was a great event.

Council Member Hanna commented on the great Easter Sunrise Service.

Mayor Bash had a question regarding Donate Life.

City Clerk Roa answered the question.

8. ADJOURNMENT
Mayor Bash adjourned the meeting with a moment of silence in honor of fallen NYPD Officer, Jonathan Diller, at 8:48 PM.

City Council Minutes - April 3, 2024
_________________________________
Dana Roa, CMC
City Clerk

City Council

STAFF REPORT
Date: April 17, 2024 Agenda Item:

3.C.

To: Honorable Mayor and City Council Members
From: Chad Blais, Public Works Director
Prepared By: Chad Blais, Public Works Director
Department: Public Works
SUBJECT:

Terms and Conditions for Construction, Operations, and Maintenance Agreements for Recycled Water Infrastructure at WRCRWA.

RECOMMENDATION:

Approve the Terms and Conditions for Construction, Operations, and Maintenance of the WRCRWA Recycled Water Pump Station and On-site Reservoir and for the Construction, Operations, and Maintenance of the Northerly Recycled Water Pipeline.

SUMMARY:

The agencies of Western Riverside County Regional Wastewater Authority have been collectively working to develop a plan to establish a Regional Recycle Water Distribution System to benefit all the members and signed a memorandum of understanding formally documenting those efforts. That plan has been lead by the Jurupa Community Service District (JCSD) which had been designing much of the backbone of a recycled water pump station and distribution mainline that would service the customers of JCSD and the other member agencies or third-party buyers of recycled water. Now that the plans and specifications are complete and out to bid, the member agencies now need to agree and sign Terms and Conditions for Construction, Operations, and Maintenance of the WRCRWA Recycled Water Pump Station, Reservoir, and Northerly Recycled Water Pipeline.

BACKGROUND:

In May 2023, the City entered into a Memorandum of Understanding (MOU) by and among the City of Corona, City of Norco, Jurupa Community Services District (JCSD), Home Gardens Sanitary District, Western Municipal Water District and the Western Riverside County Regional Wastewater Authority (WRCRWA) regarding the design, construction, operation, and capacity ownership in certain recycled water facilities. The MOU provided a non-binding commitment among the Parties for shared capacity ownership and joint funding of a recycled water pump station along with the northerly

transmission pipeline. The MOU memorializes the Parties' understandings regarding the ownership structure of the recycled water facilities and responsibilities for the design, construction, operations, and maintenance of those facilities.

The MOU also provided preliminary costs for the recycled water facilities and the application of available grant funding while recognizing the need for formal agreements to finalize the understanding. At the time the MOU was signed last year, Norco was estimated to be contributing approximately $1,600,000 towards the construction of the new recycled water pump station. In addition, JCSD had agreed to fund Norco's additional capital contribution of $1,600,000 for the northerly pipeline which will be paid back annually over a 20-year period through a loan agreement that will come before the City Council in the future. To fund the projected construction costs the City allocated $3,200,000 during fiscal year 2023-24 from the Sewer Fund to the newly established Recycled Water Fund.

These estimates included an assumption that the Inland Empire Utilities Agency (IEUA) would be contributing some percentage of the capital funding necessary to construct the facilities. Unfortunately, IEUA recently informed WRCRWA that they needed to place a pause on participating as they have multiple water supply projects that need to be evaluated before committing to the WRCRWA project. As a result, the financial contribution for construction from IEUA that would help reduce Norco's upfront construction cost has resulted in an increase in Norco's cost from $1,600,000 to $2,600,000 for the pump station. However, the City of Ontario has recently expressed interest in beginning negations with WRCRWA to secure recycled water to meet Ontario's needs. Any completed negotiations with Ontario will certainly help offset the City's capital investments for the developing recycled water. We are also still very much hopeful IEUA will also come back to the table to negotiate a deal to obtain recycled water to benefit its members.

The City has been notified by Congressman Ken Calvert's office that Norco has been approved for $3,000,000 in Community Project Funding (CPF) Grant to help fund the Recycled Water Pump Station. The City will use the $3,000,000 CPF Grant funds as the primary source of funding for construction costs, then the previously allocated $3,200,000 previously to cover any additional construction costs.

As part of the development of WRCRWA's Recycled Water facilities, JCSD has taken the lead on the design and construction of the Recycled Water Pump Station and the Northerly Pipeline to convey recycled water from the pump station to a future connection with the Inland Empire Utilities Agency. JCSD has released for bidding the plans and specifications for the new recycled water booster station and the plans and specifications for the northerly recycled water pipeline will be released for bidding in April 2024.

JSCD is now seeking the WRCRWA members to execute the following formal agreements (see attached agreements):
 Construction, Operations and Maintenance Agreement for the Recycled Water Pump Station and On-Site Reservoir
 Construction, Operations and Maintenance Agreement for the Northerly Recycled Water Pipeline

Please note agreements outline percentage responsibility for funding for each agency based on final bid pricing and any subsequent change orders that might occur during construction.

JCSD Board is scheduled to consider the award of contract for the Recycled Water Pump Station on April 22, 2024. JCSD is requesting that each agency take the Terms and Conditions documents to their respective Boards and Councils for approval.

FISCAL IMPACT:

The City has allocated $3,200,000 in funding for Recycled Water project for Fiscal Year 2023-24. In addition, the CIty has been notified by Congressman Ken Calvert's office that Norco has been approved for $3,000,000 in Community Project Funding Grant to help fund the Recycled Water Pump Station.

For the Recycled Water Pump Station: The preliminary capital investment anticipated to fund Norco's portion of the Recycled Water Pump Station is approximately $2,600,000. Funding for said costs has been allocated through the new Recycled Water Fund that has been established as part of the Fiscal Year 2023-24 budget process. City will likely seek to use the recently awarded CPF Grant to fund the construction costs. Design and construction costs will be paid on a quarterly basis until the construction has been completed.

For the Recycled Water Northerly Pipeline: The preliminary capital investment to fund Norco's portion of the Northerly Pipeline is approximately $2,600,000 which will be paid over a 20-year period as a loan payment included in the annual operations and maintenance budget.

RELATIONSHIP TO STRATEGIC PLAN:

The approval of these WRCRWA recycled water funding agreements is consistent with Strategic Plan Goal No. 5 - Infrastructure & Asset Management: Ensure timely preservation, replacement, improvement and acquisition of infrastructure and capital assets.

REVIEWED AND APPROVED BY:

Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney ATTACHMENT(S):

Construction Operations and Maintenance Agreement RW PS FINAL Construction Operations Maintenance Agreement RW NP FINAL

03586.00006\41943874.6

CONSTRUCTION, OPERATIONS AND MAINTENANCE

AGREEMENT
for the

RECYCLED WATER PUMP STATION

AND ON-SITE RESERVOIR
between

THE CITY OF CORONA,

HOME GARDENS SANITARY DISTRICT,

JURUPA COMMUNITY SERVICES DISTRICT,

CITY OF NORCO,

WESTERN MUNICIPAL WATER DISTRICT
and

WESTERN RIVERSIDE COUNTY REGIONAL

WASTEWATER AUTHORITY
at

WESTERN RIVERSIDE COUNTY REGIONAL

WASTEWATER AUTHORITY TREATMENT PLANT
in

RIVERSIDE COUNTY, CALIFORNIA

03586.00006\41943874.6
Construction, Operations and Maintenance Agreement
Recycled Water Pump Station and On-Site Reservoir

TABLE OF CONTENTS

1. DEFINITIONS

2. EFFECTIVE DATE: TERM; TERMINATION

3. CONSTRUCTION OF THE PUMP STATION PROJECT

4. OWNERSHIP OF IMPROVEMENTS; CAPACITY OWNERSHIP AND RIGHTS

5. OPERATIONS AND MAINTENANCE

6. CAPITAL COSTS; FUNDING; OPERATING AND CAPITAL COST

ALLOCATION

7. ENVIRONMENTAL COMPLIANCE

8. ADMINISTRATION

9. DEFAULTS; REMEDIES

10. INSURANCE

11. INDEMNIFICATION

12. MISCELLANEOUS PROVISIONS

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1 Construction, Operations and Maintenance Agreement
Recycled Water Pump Station and On-Site Reservoir
Construction, Operations and Maintenance Agreement
for the
Recycled Water Pump Station and On-Site Reservoir
This CONSTRUCTION, OPERATIONS AND MAINTENANCE AGREEMENT (“Agreement”) is entered into by and between the City of Corona, a municipal corporation and general law city (“Corona”), Home Gardens Sanitary District, an independent special district organized under the laws of the State of California, (“Home Gardens”), Jurupa Community Services District, an independent special district organized under the laws of the State of California, (“JCSD”), City of Norco, a municipal corporation and charter city, (“Norco”), Western Municipal Water District, an independent special district organized under the laws of the State of California, (“Western Water”) and Western Riverside County Regional Wastewater Authority (“WRCRWA”), a joint powers authority organized under the laws of the State of California. Corona, Home Gardens, JCSD, Norco, Western Water and WRCRWA may be referred herein individually as a “Party” and collectively as the “Parties.”

RECITALS
A. Corona, Home Gardens, JCSD, Norco and Western Water are participating agencies of the joint powers authority known as Western Riverside County Regional Wastewater Authority and at times may enter into project agreements to further the goals and purposes of WRCRWA.

B. To support the implementation of a recycled water program through WRCRWA, the Parties intend to implement recycled water infrastructure projects and from time to time will enter into agreements with WRCRWA for certain projects identified and desired by any or all the parties to the joint powers authority.

C. JCSD has identified potential distribution system improvements in its service area to utilize recycled water that has been treated by WRCRWA to Title 22 standards, but would need to construct certain pumping and conveyance infrastructure improvements to connect to the potential distribution system in its service area, and to allow the conveyance of recycled water to other agencies for beneficial use and potential sale, and seeks cooperation from the Parties for the construction, operations and maintenance of the infrastructure improvements.

D. This Agreement includes WRCRWA as a Party in part because of the accounting functions WRCRWA will undertake in connection with this Agreement and the Parties do not intend for this project to constitute a “specific project” under the provisions of WRCRWA’s Joint of Exercise of Powers Agreement, as amended, and particularly Section 7 of that agreement.

E. To implement this Pump Station Project, as more fully described herein, the Parties have identified proposed capacity ownership rights by agency, addressed administrative and financial responsibilities and capacity allocations in these facilities, assigned lead agency responsibilities, and defined and allocated estimated construction costs.

F. The Parties desire to enter into this Agreement to formalize the construction, operations, and maintenance requirements for the proposed Recycled Water Pump Station (“Pump Station”), as well as the operations and maintenance responsibilities for the existing 1.0

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Million Gallon (“MG”) on-site recycled water storage reservoir (“On-site Reservoir”), further described in Section 1.11 below.

G. The Parties intend to enter into a separate agreement pertaining to the construction, operations and maintenance responsibilities for the Northerly Recycled Water Pipeline (“Northerly Pipeline”), further described in Section 1.12 below.

AGREEMENT
The Parties, in consideration of their mutual covenants and for other good and valuable consideration, agree as follows:

1. DEFINITIONS. Capitalized terms used in this Agreement shall have the meanings set forth in this Section 1 or as otherwise defined herein this Agreement.

1.1. Capacity Ownership. Each Party’s ownership percentage of capacity in the various infrastructure components of the Recycled Project. The total capacity of each component of the infrastructure shall be equal to the sum of the Parties’ individual capacity ownership interests. Capacity ownership of the Pump Station and the On-site Reservoir is specified in Section 4.2 of this Agreement.

1.2. Capital Costs. Costs incurred in connection with new capital facility construction, capacity expansion, or facility betterments. For the Pump Station Project and On-site Reservoir, capital costs include, but are not limited to, construction costs for the above and below-grade improvements, piping, appurtenances, metering, valves, pumps, motors, utility service connections and metering, instrumentation and control, supervisory control and data acquisition (“SCADA”), site improvements and structures along with all construction related costs and services including bonding, legal services, engineering services during construction, construction geotechnical services, construction surveying, construction/program management, inspection, traffic control, and environmental monitoring and mitigation.

1.3. Design and Construction Lead Party. In cases for which new recycled water infrastructure is required to be designed and constructed for the Recycled Project, the design and construction lead Party shall procure and manage design and construction services as required.

The design and construction lead Party shall be reimbursed for such services, including Capital Costs, Project Development Costs, and Project Implementation Costs as described in this Agreement, or any future amendments agreed to by the Parties. In cases where the design and construction lead Party is not the Party with ultimate physical infrastructure ownership and the infrastructure is located on another Party’s property, the Parties will cooperate to provide access rights for construction activities. For purposes of this Agreement, JCSD is designated as the lead Party for the design and construction of the Pump Station. JCSD will require and be granted access rights from WRCRWA for construction of the Pump Station, metering facilities and discharge piping to the Points of Connection with the Northerly Pipeline, the Southerly Pipeline, and the Norco Pipeline.

1.4. Fixed Operating Costs. On-going operating costs that do not vary with the quantity of recycled water delivered from the Recycled Project, including, but not limited to, routine maintenance, fixed utility expenses, and administrative overhead costs such as insurance, budgeting, budget tracking, invoicing, and related general management expenses.

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1.5. Operations and Maintenance Lead Party: The Parties to this Agreement designated as responsible for the on-going operations and maintenance for each of the various infrastructure components of the Recycled Project. In cases where the operations and maintenance lead Party must access another Party’s property to operate and maintain a component of the Recycled Project infrastructure, the Parties will cooperate to provide access rights for required operations and maintenance activities. For purposes of this Agreement, WRCRWA is designated as the lead Party for the operations and maintenance of the Pump Station and On-site Reservoir.

1.6. Physical Infrastructure Ownership. Legal ownership and physical custody of the various infrastructure components of the Recycled Project, with associated responsibilities.

Physical infrastructure ownership of the Pump Station and the On-site Reservoir is specified in Section 4.1.1 of this Agreement.

1.7. Points of Connection. The physical locations where the Northerly Pipeline, the Southerly Pipeline, and the Norco Pipeline will be interconnected to the Pump Station’s discharge piping. The points of connection shall be the basis for the delineation of ownership and agency responsibilities for these infrastructure components of the Recycled Project. The Points of Connection are as depicted on the attached Exhibits A-1 and A-2, and by this reference incorporated herein. The coordinates of Points of Connection are as follows:

Facility Northing Easting
Northerly Pipeline 2283399.011 6150769.920
Southerly Pipeline 2283419.744 6150882.666
Norco Pipeline 2283367.415 6150820.257

1.8. Project Development Costs. Costs associated with planning, preliminary design (including survey and geotechnical), program management, and environmental documentation.

1.9. Project Implementation Costs. Costs associated with final design, geotechnical, permits, surveying, right-of-way acquisition, facility agreement and legal services, encroachment permits, community outreach, and program management.

1.10. Recycled Water Cost Center. A specific section in WRCRWA’s annual operating and capital budget that categorizes and tracks all costs associated with Pump Station.

1.11. Recycled Water Infrastructure - Pump Station Project and On-site Reservoir. The proposed Recycled Water Pump Station (the “Pump Station Project”) will pump recycled water produced at the WRCRWA Treatment Plant from the On-site Reservoir for delivery through three recycled water delivery pipelines on behalf of the WRCRWA member agencies for designated beneficial uses. The three recycled water pipelines, which are described in Section 1.12 of this Agreement, connect to and are served by the Pump Station. The recycled water pipelines are not a part of this Agreement.

1.12. Recycled Water Project (“Recycled Project”). The overall recycled water infrastructure required to deliver WRCRWA recycled water to the Points of Connection for conveying the recycled water for the Parties’ designated beneficial uses. This recycled water infrastructure includes a proposed 10.15 million gallon per day (“MGD”) Pump Station and associated metering and discharge piping to be built on the WRCRWA Treatment Plant property located at 14634 River Road, Corona, CA; the existing 1.0 million gallon treated recycled water

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reservoir located on the WRCRWA Treatment Plant property that will provide equalization storage during pumping (“On-site Reservoir”); a 24-inch diameter recycled water transmission pipeline (“Northerly Pipeline”); a 20-inch diameter recycled water transmission pipeline (“Southerly Pipeline”); and an existing 12-inch diameter recycled water pipeline owned by Norco (“Norco Pipeline”). The Pump Station is a combined station that will consist of two banks of pumps: one to supply the Northerly Pipeline, one to supply the Southerly Pipeline and the existing Norco Pipeline, and one standby pump that will serve as a back-up for both banks of pumps.

1.13. Replacement and Refurbishment Costs (“R&R Costs”). Costs incurred to replace major capital items and facilities and refurbish infrastructure to maintain operation or extend useful service life.

1.14. Variable Operating Costs: On-going operating costs that vary based on the quantity of recycled water delivered from the Recycled Project. These costs include but are not limited to energy and chemical usage, and the repair and replacement of perishable capital items and equipment including but not limited to items such as gaskets, valve seats, electrical switches and similar items that routinely experience wear during the use of a facility. Variable costs will be aggregated and allocated to the Parties based upon the proportion of recycled water delivered on behalf of each Party as described in Section 6.4.1 of this Agreement.

2. EFFECTIVE DATE; TERM; TERMINATION.

2.1. Effective Date. The Effective Date shall be the date upon which all parties have executed this Agreement.

2.2. Term. The Term of this Agreement shall commence on _____/_____/2024 (Effective Date) and, unless earlier terminated, shall terminate concurrently with the WRCRWA Joint Exercise of Powers Agreement and addenda thereto.

2.3. Termination. A Party may terminate its participation in this Agreement by selling its capacity rights in total to another Party or Parties under the procedures set forth in Section

4.2.2 of this Agreement. All of the Parties to this Agreement may terminate the Agreement by unanimous written consent.

3. CONSTRUCTION OF THE PUMP STATION PROJECT.

3.1. Recycled Project Infrastructure Description of the Pump Station Project. The Pump Station shall be constructed and located at the WRCRWA Treatment Plant site and shall be a combined station that will consist of two banks of pumps: one to supply the Northerly Pipeline and one to supply the Southerly Pipeline and the existing Norco Pipeline, and one standby pump that will serve as a backup to both banks of pumps. The On-site Reservoir shall serve as the primary forebay for the Pump Station. The configuration of the Recycled Project facilities and the Points of Connection of the pipelines referenced herein are shown on Exhibits A-1 and A-2, attached hereto.

3.2. Pump Station Design and Construction. JCSD is designated as the design and construction lead Party for the Pump Station. The Parties agree that the Pump Station shall be designed and constructed in a manner generally consistent with the report commissioned by JCSD entitled: “Recycled Water Pipeline and Pump Station Preliminary Design Report,” prepared by Albert A. Webb Associates, dated April 2022 (“PDR”), and in accordance with the design and

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operational standards of the WRCRWA Treatment Plant. JCSD shall coordinate with the Parties on construction contract award and construction of the Pump Station and obtain required approvals from the Parties as described in Section 3.4. Since JCSD is designated as the lead Party for the construction of the Pump Station Project, the rules, laws and regulations that govern or are applicable to JCSD relative to the engagement of services agreements, construction contracts and public works improvement projects will apply to this Agreement.

3.3. JCSD will require access rights from WRCRWA for construction of the Pump Station, metering facilities and discharge piping to the Points of Connection with the Northerly Pipeline, the Southerly Pipeline, and the Norco Pipeline. WRCRWA agrees to grant any access right for construction of the Pump Station Project, pursuant to a temporary construction easement or license agreement, in a form acceptable to JCSD and WRCRWA. The Parties will grant all access and permit needed in order for JCSD to construct the Pump Station Project. The Parties shall provide timely responses and approvals when necessary or requested.

3.4. Pump Station Project Coordination and Approvals. JCSD has coordinated with WRCRWA and the other Parties throughout the final design and pre-bid phases of the Pump Station Project, and will coordinate through the construction contract award phase of the Pump Station project to ensure the facility is in accordance with WRCRWA design and operational standards and any grant funding material specification requirements, such as “Buy American” provisions. JCSD shall schedule and convene quarterly coordination meetings of the Parties to discuss construction related items, provide project construction and schedule updates, and to consider approval of Capital Costs as described below.

3.4.1. In the initial quarterly coordination meeting, which shall occur no later than twenty-five (25) days prior to the scheduled JCSD Board action to award the Pump Station construction contract, the representatives of the Parties shall have obtained from their individual governing boards or councils, as needed, the authority to approve the following: Initial Capital Costs for the Pump Station and appurtenant facilities plus a ten percent (10%) Capital Cost contingency.

3.4.2. Quarterly coordination meetings shall be held throughout the duration of the construction and final acceptance of the project. The representatives of the Parties shall have obtained from their individual governing boards or councils, as needed, the authority to approve in the meetings the following additional Capital Costs:

3.4.2.1. Issuance of any construction change orders cumulatively exceeding ten percent (10%) of the original Pump Station construction contract amount.

3.4.2.2. Issuance of professional service contracts amendments cumulatively exceeding ten percent (10%) of each original contract amount.

3.4.3. Items placed on the agenda of the quarterly coordination meetings by JCSD that require approval of the Parties will be provided to the Parties no less than forty-five (45) days in advance of the quarterly meeting date. Approval of the initial Capital Costs as described in Section 3.4.1, shall require unanimous consent of the Parties. Approval of additional Capital Costs as described in Section 3.4.2.1, and Section 3.4.2.2, shall require the majority consent of the Parties. JCSD may schedule coordination meetings of the Parties more frequently than quarterly, if needed.

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3.5. Potential Future Construction.

3.5.1. Recycled Water Storage. Equalization storage is required to support the operation of the Pump Station and to meet the Parties’ recycled water demands. Such storage shall initially be provided by the existing On-site Reservoir located at the WRCRWA Treatment Plant site that is currently serving as the recycled water treated water reservoir. In the event that additional storage is required for system-wide operations, the Parties to this Agreement wishing to acquire additional recycled water storage capacity shall coordinate through WRCRWA to design and construct one or more new storage reservoirs on the WRCRWA Treatment Plant site, or at an off-site location agreed to by the Parties. Expansion of the recycled water storage shall be under separate agreement among the Parties wishing to acquire storage in the expanded facilities.

3.5.2. Future Recycled Water Storage Design and Construction. WRCRWA is designated as the design and construction lead Party for future potential expansion of recycled water storage at the WRCRWA Treatment Plant as needed to augment the existing On-site Reservoir. For potential storage expansion in off-site locations, the design and construction lead Party shall be determined by the Parties participating in the expansion at such time when expansion is deemed necessary by the Parties. The Parties will determine the need for and timing of such expansion and shall consider operational monitoring conducted by WRCRWA in accordance with Section 5.2 in making that determination.

3.6. Project Amendments. On and after the date JCSD has awarded the construction contract for the Pump Station Project, changes to the characteristics of the Pump Station Project, including the deadline for its completion, and any responsibilities of JCSD as the designated lead agency for design and construction of the Pump Station Project, or of the other Parties, may be requested in writing by any of the Parties and are subject to the approval of JCSD, which approval will not be unreasonably withheld, provided that such changes or extensions of time for completion of the Pump Station Project shall be approved in the sole discretion of JCSD. Nothing in this Agreement shall be construed to require or allow completion of the Pump Station Project without full compliance with the California Environmental Quality Act (Public Resources Code Section 21000 et seq.; “CEQA”) and the National Environmental Policy Act of 1969 (42 USC 4231 et seq.), if applicable, but the necessity of compliance with CEQA and/or NEPA shall not justify, excuse, or permit a delay in completion of the Pump Station Project.

4. OWNERSHIP OF IMPROVEMENTS; CAPACITY OWNERSHIP AND RIGHTS.

4.1. Ownership of Infrastructure Improvements.

4.1.1. Pump Station and On-site Reservoir Infrastructure Owner. WRCRWA shall be the physical infrastructure owner of the Pump Station upon completion of construction by JCSD as specified in Section 6.3.4 of this Agreement. WRCRWA currently owns and shall continue to own the existing On-site Reservoir that will be utilized for equalization storage and will also own any future recycled water on-site storage connected to the Pump Station.

4.2. Capacity Ownership and Rights.

4.2.1. Capacity Ownership of the Pump Station and On-site Reservoir. The Pump Station shall be designed to deliver approximately 10.15 MGD of recycled water. Ownership of capacity in the Pump Station shall be allocated among the Parties, expressed as daily flows in

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MGD. Initial capacity ownership in the Recycled Water Pump Station shall be allocated in accordance with Table 1, below.

Table 1 – Recycled Water Pump Station Capacity Ownership Agency Capacity (MGD) Percentage (%)
Corona 2.62 25.81%
Home Gardens 0.56 5.52%
Norco 1.70 16.75%
Western Water 1.54 15.17%
JCSD 3.73 36.75%
Total 10.15 100.00%
The sum of the individual capacity ownership percentages equates to approximately the nominal operating capacity of the Pump Station. No change in the percentage of capacity ownership by a Party shall occur by reason of any variance between actual use and the nominal capacity of the Pump Station, except by amendment of this Agreement.

Ownership of capacity in the existing recycled water On-site Reservoir equalization storage is currently and shall remain allocated among the Parties based upon capacity ownership of each in the WRCRWA Treatment Plant, as listed in Table 2, below.

Table 2 – WRCRWA Treatment Plant and On-site Reservoir Capacity Ownership Agency
WRCRWA
Treatment Plant
Capacity (MGD)
On-site
Reservoir
Capacity (MG)
Percentage (%)
Corona 2.62 0.187 18.71%
Home Gardens 0.75 0.054 5.36%
Norco 2.70 0.193 19.29%
Western Water 1.93 0.138 13.78%
JCSD 6.00 0.428 42.86%
Total 14.00 1.000 100.00%

4.2.2. Capacity Ownership Adjustments and Transfers. If a Party determines that it wishes to adjust its capacity ownership in the Pump Station or the On-site Reservoir, or both facilities, the Party may buy, sell, or enter into a leasing arrangement with another Party or Parties to make such adjustments. Such a transaction may only occur among WRCRWA member agencies. In addition, Parties may wish to selectively participate in future capital projects to

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expand the capacity of the Pump Station or the On-site Reservoir, or both facilities. In such cases where an ownership transfer changes capacity ownership, the allocation of Capital Costs, R&R Costs and Fixed Operating Costs shall be adjusted accordingly. Should a Party or Parties sell all of their capacity in the Pump Station, the On-site Reservoir, or both facilities to another WRCRWA Party or Parties, the Party or Parties selling all of their capacity ownership in the applicable infrastructure shall have no further financial obligations under this Agreement. All transactions that result in a change in capacity in the facilities shall be promptly reported to WRCRWA in writing for accounting, budgeting, and cost allocation purposes, and the Parties agree to amend this Agreement to reflect such changes in capacity ownership interests as soon as practical following such changes.

5. OPERATIONS AND MAINTENANCE.

5.1. Pump Station and On-site Reservoir Operations and Maintenance. WRCRWA is designated as the operations and maintenance lead Party and shall be responsible for operations and maintenance of the Pump Station and On-site Reservoir in a manner consistent with the WRCRWA Treatment Plant facilities and in accordance with Section 8.

5.2. Administration of Operations. Upon completion of construction of the Pump Station by JCSD and transfer of the completed facilities to WRCRWA, and commencement of operations as described in Section 6.3.4 (Milestone No. 4), WRCRWA shall assume physical control of the facilities and shall be responsible for all operations and maintenance decisions and regulatory compliance, consistent with the WRCRWA Joint Exercise of Powers Agreement, applicable addenda, and policies and ordinances adopted by the WRCRWA Board. WRCRWA will also have all operating responsibilities for the On-site Reservoir, and in cooperation with the Parties will monitor intra-day peaking and will optimize the scheduling of recycled water deliveries and maximize the utilization of the existing On-site Reservoir using the Parties’ aggregate capacity.

WRCRWA will also monitor capacity utilization and will report and make timely recommendations to the Parties and the WRCRWA Board regarding the need for additional projects to expand recycled water storage after the Parties’ aggregate capacity has been or is projected to be fully utilized.

6. CAPITAL COSTS; FUNDING; OPERATING AND CAPITAL COST ALLOCATIONS.

6.1. Recycled Water Pump Station Costs. The Parties previously executed a Memorandum of Understanding between them identifying a preliminary estimate of the Capital Cost for the Pump Station. Subsequently, JCSD has continued to advance the Pump Station Project through the design and bidding phase. The currently estimated costs for the project are as follows:

Project Development Costs and Project Implementation Costs = $ 835,000 Plus Capital Costs Including a 10% Construction Contingency = $18,391,450 Equals Subtotal = $19,226,450
Less Applied Grant Funding (Section 6.2) = ($3,200,000) Equals Total Estimated Cost Obligation of the Parties = $16,026,450

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As the Pump Station project proceeds, project approvals and cost reconciliation shall be performed pursuant to Section 3.4 and Section 6.3.

6.2. Grant Funding. JCSD has been successful in securing grant funding to offset costs for the construction of a recycled water distribution system for its service area, including the cost of constructing the Pump Station. JCSD shall provide Three Million Two Hundred Thousand Dollars ($3,200,000) in grant proceeds to offset the Parties’ costs for the design and construction of the Pump Station, which shall be allocated among the Parties in proportion to each Party’s capacity ownership as shown in Table 1. Application of the grant proceeds shall be administered by JCSD and shall be applied when JCSD receives funding from the granting agencies.

6.3. Funding for Project Development and Project Implementation Costs and Completion of the Pump Station Project. Upon the Effective Date of this Agreement, each Party shall be obligated to make a series of payments based upon project milestones for its share of project costs based upon its percentage capacity ownership in the Pump Station as shown in Table 1. Deposits shall be made in accordance with the following milestones and shall be due and payable to JCSD on the schedule indicated. Forty-five (45) days prior to each milestone payment due date, JCSD shall perform a cost reconciliation based on actual costs incurred todate and shall submit an itemized invoice to each Party for Payment. Project milestones and payment requirements are as follows:

6.3.1. Milestone No. 1 – Completion of Project Development Activities, Project Implementation Activities, and Final Design

6.3.1.1. Payment includes all Project Development and Project Implementation activities including final design.

6.3.1.2. Due Date: Sixty (60) days after JCSD Board action to award the Pump Station construction contract.

6.3.2. Milestone No. 2 – Construction Progress Payments

6.3.2.1. Includes all Capital Costs associated with construction and construction change orders, bonding, and construction support legal services, engineering services during construction, construction geotechnical services, construction surveying, construction/program management, inspection, and environmental monitoring and mitigation.

6.3.2.2. Due Date: Quarterly payments, due at end of each calendar year quarter after issuance of the Notice to Proceed (First quarter - due March 31, second quarter - due June 30), third quarter - due September 30, and fourth quarter – due December 31).

6.3.3. Milestone No. 3 – Final Cost Reconciliation

6.3.3.1. Includes those Capital Costs associated with final construction change orders, not previously included as part of prior construction progress payments included on Milestone No. 2 and all remaining construction support costs and final costs through start-up, commissioning, and issuance of a Notice of Completion by JCSD.

6.3.3.2. Due Date: Thirty (30) days after JCSD’s issuance of a Notice of Completion.

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6.3.4. Milestone No. 4 – Pump Station Project Completion and Asset Transfer

6.3.4.1. Includes transfer of all Pump Station assets, construction warranty rights and operating responsibilities from JCSD to WRCRWA.

6.3.4.2. Due Date: No later than sixty (60) days after JCSD’s issuance of a Notice of Completion, which will be deemed the completion of the Pump Station project.

6.4. Operating And Capital Cost Allocations

6.4.1. Pump Station Operating Costs. As defined in this Agreement, operating costs (“Operating Costs”) include both Fixed Operating Costs and Variable Operating Costs. The allocation of Fixed Operating costs for the Pump Station among the Parties shall be based upon each Party’s capacity ownership in the Pump Station as expressed in Table 1. Variable Operating Costs for the Pump Station shall be allocated among the Parties based upon metered deliveries of recycled water to the Parties for their designated uses. Designated uses include direct deliveries to each of the Parties through the Northerly Pipeline, Southerly Pipeline or the Norco Pipeline, or deliveries through one or more of these facilities for outside sales or external exchanges.

6.4.2. On-site Reservoir Operating Costs. The allocation of Fixed Operating Costs for the On-site Reservoir among the Parties shall be based upon each Party’s capacity ownership in the WRCRWA Treatment Plant as expressed in Table 2. Variable Operating Costs for the On-site Reservoir shall be allocated among the Parties based upon metered deliveries of recycled water to the Parties for their designated uses. Designated uses include direct deliveries to the Parties through the Northerly Pipeline, Southerly Pipeline or the Norco pipeline, or deliveries through one or more of these facilities for outside sales or external exchanges.

6.4.3. Capital and Replacement and Refurbishment Costs. Capital and replacement and refurbishment (“R&R”) costs shall be based upon each Party’s capacity ownership in Pump Station and the On-site Reservoir respectively, at the time of the proposed capital project or R&R project for either the Pump Station or On-site Reservoir. Establishment of an R&R fund and contributions to the fund shall be included in the annual budgeting process described in Section 8.2 of this Agreement.

6.5. Records Retention. The Parties to this Agreement shall retain or cause to be retained for audit for a period of three (3) years from the date of final payment, all records and accounts relating to the work on the Pump Station Project or the execution of this Agreement.

7. ENVIRONMENTAL COMPLIANCE.

7.1. JCSD is the lead agency for environmental review of the Pump Station Project under the California Environmental Quality Act (“CEQA”) and has completed that requirement with the adoption of an Initial Study/Mitigated Negative Declaration on September 28, 2015.

7.2. JCSD is the lead agency under CEQA for the design and construction work of the Pump Station Project. All responsibilities and obligations of JCSD for the design and construction work are conditioned upon compliance with CEQA as provided for under this Section 7 of the Agreement.

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7.3. The Parties’ approval of any improvements contemplated under this Agreement and any obligations of the Parties associated with such improvements or use thereof are conditioned upon future compliance with CEQA, including, but not limited to, a determination that the environmental impacts of the improvements have been adequately considered and mitigated in compliance with CEQA and any and all applicable environmental laws. The Parties’ approval of this Agreement does not limit the ability of the Parties to consider alternatives to the improvements pursuant to CEQA. The Parties will file a Notice of Determination under Title 14 of the California Code of Regulations, sections 15075 or 15094, or a Notice of Exemption under section 15062, as applicable, following approval of the Pump Station Project.

8. ADMINISTRATION.

8.1. Governance. Upon the transfer of the Pump Station to WRCRWA and commencement of operations, as described in Section 6.3.4 (Milestone No. 4), all Recycled Project budget, capital improvement, replacement and refurbishment, and applicable operating policy decisions shall be made by members of the WRCRWA Board of Directors representing Parties with capacity ownership in the Recycled Project. All voting shall be in accordance with the requirements of the WRCRWA Joint Exercise of Powers Agreement, applicable addenda, and adopted WRCRWA policies and procedures.

8.2. Budget Administration. One hundred eighty (180) days prior to the Recycled Project becoming operational, WRCRWA shall prepare a draft annual operating, capital and R&R budget for the Pump Station and On-site Reservoir portion of the Recycled Project. The proposed draft annual operating budget shall include a Recycled Water Cost Center for categorizing and tracking all costs associated with Pump Station, the On-site Reservoir, and other portions of WRCRWA Treatment Plant operations that are specifically applicable to the Recycled Project.

The Recycled Cost Center draft budget shall include all costs for operations and maintenance, capital expansions, and R&R funding, and shall be organized in a manner that aligns with WRCRWA’s existing accounting, financial reporting, and budgeting practices and policies applicable to the WRCRWA Treatment Plant. In conjunction with WRCRWA’s preparation of the initial draft operating, capital, and R&R budget for the Pump Station, WRCRWA shall coordinate with JCSD and its design engineer to cause the preparation of an initial R&R plan for the Pump Station that WRCRWA can use as initial guidance for annual budgeting purposes.

8.2.1. WRCRWA shall incorporate its Recycled Cost Center draft budget information into its annual Operating Budget and Capital Improvement Program Budget to specifically identify recycled water system costs and associated assets for which WRCRWA is responsible. Approval of the annual Operating Budget and Capital Improvement Program Budget shall be in accordance with the WRCRWA Joint Exercise of Powers Agreement, applicable addenda, and adopted WRCRWA policies and procedures.

8.2.2. Each Party shall be financially responsible for its portion of Fixed Operating Costs, Variable Operating Costs, Capital Costs and R&R Costs for the Pump Station and On-site Reservoir in accordance with Section 6.4 of this Agreement and in accordance with the provisions of WRCRWA’s Joint Exercise of Powers Agreement.

8.2.3. Each Party shall be invoiced by WRCRWA for the Recycled Project costs, not paid under Section 6.3, above, in the same manner, timing, and terms as WRCRWA’s normal invoicing for costs related to the WRCRWA Treatment Plant and collection system.

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8.3. Authorized Representatives. Each Party's Authorized Representative will have the authority to represent its Party and make decisions for that Party under this Agreement. Each Party's Authorized Representative is responsible for determining when a particular decision requires the prior authorization of the Party's governing board or council.

8.4. Disputes. In the event of dispute regarding interpretation or implementation of this Agreement, the Authorized Representatives of each of the Parties shall endeavor, in good faith, to resolve the dispute by meeting within 30 days after the request of a Party to this Agreement. If after meeting to attempt to resolve the dispute and the dispute is still unresolved, the Parties shall use the services of a mutually acceptable mediator in an effort to resolve the dispute by nonbinding mediation. The Parties shall share equally the cost of the mediator. If the Parties are unable to agree on a mediator or are still unable to resolve the dispute after mediation, unless the Parties otherwise agree, the matter may be resolved by litigation and any Party may at its option pursue any available legal remedy.

9. DEFAULTS; REMEDIES. In the event that a Party materially defaults in performance of any of its obligations or responsibilities under this Agreement, any or all of the non-defaulting parties shall have the right to pursue all remedies available at law or in equity, against the defaulting party, provided such default remains uncured for more than thirty (30) days after the defaulting party receives notice of such default. The Parties are not required to exhaust the process for resolution of disputes as provided in Section 8.4 above before seeking any remedies against a defaulting party who has failed to cure such default within the time prescribed herein.

10. INSURANCE.

10.1. Construction and Service Contract Insurance Requirements. JCSD shall require that all persons or entities hired to perform services regarding the Pump Station Project to obtain insurance of the types and in the minimum amounts described below. Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor, its agents, representatives, employees or subcontractors. (a) Commercial General Liability Insurance (“CGL”). CGL insurance coverage on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $2,000,000.00 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to the Pump Station Project or the general limit shall be twice the required occurrence limit.

Corona, Home Gardens, JCSD, Norco, Western Water and WRCRWA, their respective officials, officers, employees, agents, and consultants shall be named as “Additional Insured” with respect to liability arising out of work, performance of the services or operations performed by or on behalf of the Contractor on the Pump Station Project, including materials, parts or equipment furnished in connection with such work, performance or operations and automobiles owned, leased, hired or borrowed by or on behalf of the Contractor and shall contain no special limitations on the scope of coverage or the protection afforded to these insured; and contain standard separation of insured provisions.
(b) Automobile Liability Insurance. Automobile liability insurance covering any auto, with limits no less than $2,000,000.00 per accident for bodily injury and property damage. Such insurance shall include coverage for owned, hired and non-owned automobiles.

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13 Construction, Operations and Maintenance Agreement
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(c) Professional Liability Insurance. Errors and omissions liability insurance with a limit of not less than $1,000,000.00. Professional liability insurance shall only be required of design or engineering professionals.
(d) Workers’ Compensation Insurance. Workers’ compensation insurance as required by the State of California, with statutory limits and employers’ liability insurance with limits of not less than $1,000,000.00 per accident for bodily injury or disease. (e) Builder’s Risk. (Course of construction) insurance utilizing an “All Risk” (Special Perils) coverage form, with limits equal to the completed value of the Pump Station Project and no coinsurance penalty provisions.
(f) Contractors’ Pollution Legal Liability; Asbestos Liability; Errors and Omissions with limits no less than $2,000,000 per occurrence or claim, and $4,000,000 policy aggregate.

If the Contractor maintains broader coverage and/or higher limits than the minimums shown above, the Additional Insureds shall be entitled to the broader coverage and/or higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the Additional Insureds.

10.2. Post Construction Insurance. Upon completion of the Pump Station Project, the Party who owns the infrastructure improvements shall be responsible for procuring and maintaining adequate insurance coverages, or a program of self-insurance, for the improvements.

11. INDEMNIFICATION.

11.1. Mutual Indemnification. Pursuant to the provision of Section 895 of the California Government Code, each of the Parties to this Agreement agrees to indemnify and hold harmless the other Parties from all loss or liability for damage, actual or alleged, to person or property arising out of or resulting from the indemnifying Party’s acts or omissions in the performance of this Agreement. In the event of a third-party loss caused by the negligence, wrongful act or omission of any Parties to this Agreement, each Party shall bear financial responsibility in proportion to its percentage of fault as may be mutually agreed between them or judicially determined. The provisions of California Civil Code Section 2778 regarding interpretation of indemnity agreements are hereby incorporated.

11.2. Construction Contract Indemnification Provisions. JCSD shall ensure the construction contract(s) shall include an indemnification obligation imposed upon any contractors and any subcontractors in favor of all the Parties to this Agreement in the form or substantially in the form provided below:

To the fullest extent permitted by law, the contractor will defend, indemnify and hold Corona, Home Gardens, JCSD, Norco, Western Water and WRCRWA, their respective officers, directors, officials (elected or appointed), members, employees and representatives ("Indemnitees") harmless from any and all claims, losses, damages, liabilities and expenses (including but not limited to legal, expert witness and consulting fees and costs) arising out of, or resulting from, the acts or omissions, in whole or in part (including but not limited to breach of contract), of the contractor, its subcontractors and their respective officers, directors, partners, agents, employees or anyone for whom they may be liable. Notwithstanding the above, the contractor will not be required to defend, indemnify, and hold harmless an Indemnitee for the

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14 Construction, Operations and Maintenance Agreement
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Indemnitee's own active negligence, sole negligence, or willful misconduct, provided that the contractor will continue to indemnify and defend the Indemnitee to the extent and in proportion to the degree that the Indemnitee is not actively negligent. The indemnification obligations set forth in this paragraph will not be limited in any way by the amount or type of damages, compensation or benefits payable by or for the contractor under insurance policies, workers compensation laws, disability benefit laws or other employee benefit laws.

The contractor will defend, indemnify, and hold Indemnitees harmless from any and all claims, stop payment notices, or connected legal proceedings filed by the contractor or its subcontractors, suppliers, or other persons or entities claiming by or through the contractor by reason of having provided labor, materials, and equipment relating to the Pump Station Project.

12. MISCELLANEOUS PROVISIONS.

12.1. Other Agreements Not Prohibited. Other agreements by and between the Parties of this Agreement or any other entity are neither prohibited nor modified in any manner by execution of this Agreement.

12.2. Assignment. Except as otherwise provided in this Agreement, the rights and obligations of any Party to this Agreement shall not be assignable or transferable without the consent of the governing body of each Party hereto.

12.3. Section Headings. The section headings herein are for convenience of the Parties only, and shall not be deemed to govern, limit, modify or in any manner affect the scope, meaning or intent of the provisions or language of this Agreement.

12.4. Jurisdiction; Venue. This Agreement is made in the State of California, under the Constitution and laws of such State, and shall be construed and enforced in accordance with the laws of such State. This Agreement will be governed by the laws of the State of California. The Parties agree that venue for any legal proceeding brought under this Agreement will be in the County of Riverside, State of California.

12.5. Construction of Language; Interpretation. It is the intention of the Parties hereto that if any provision of this Agreement is capable of two constructions, one of which would render the provision void and the other of which would render the provision valid, then the provision shall have the meaning which renders it valid. The terms and conditions of this Agreement will be interpreted according to their plain meaning, and not strictly for or against any Party. Any rule of construction or interpretation to the contrary will be of no force or effect with respect to this Agreement.

12.6. Nondiscrimination. Any party or contractor shall not discriminate in the provision of services, allocation of benefits, accommodation in facilities, or employment of personnel on the basis of ethnic group identification, race, religious creed, color, national origin, ancestry, physical handicap, medical condition, marital status or sex in the performance of this Agreement; and, to the extent they shall be found to be applicable hereto, shall comply with the provisions of the California Fair Employment and Housing Act (Gov. Code 12900 et. seq), the Federal Civil Rights Act of 1964 (P.L. 88-352), the Americans with Disabilities Act of 1990 (42 U.S.C. S1210 et seq.) and all other applicable laws or regulations.

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15 Construction, Operations and Maintenance Agreement
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12.7. Cooperation. The Parties recognize the necessity and hereby agree to cooperate with each other in carrying out the purposes of this Agreement.

12.8. Conflict of Interest. For the term of this Agreement, no member, officer or employee of any of the Parties, during the term of his or her service with a Party, as the case may be, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

12.9. Successors. This Agreement shall be binding upon and shall inure to the benefit of the successors of the Parties hereto.

12.10. Enforcement. The Parties are hereby authorized to take any and all legal or equitable actions, including but not limited to an injunction and specific performance, necessary or permitted by law to enforce this Agreement.

12.11. Integration; Recitals. This Agreement constitutes the full and complete Agreement of the Parties. The above Recitals are true and correct and are incorporated herein.

12.12. Amendment. Except as otherwise may be provided in this Agreement, neither this Agreement nor any provision hereof may be modified or amended except by a written instrument signed by the Parties.

12.13. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall constitute an original and all of which together shall constitute one and the same Agreement.

12.14. No Third Party Beneficiaries. All of the covenants contained in this Agreement are for the express benefit of each and all such Parties, this Agreement is not intended to benefit any third parties, and any such third party beneficiaries are expressly disclaimed.

12.15. Waiver. Except as otherwise specifically provided in this Agreement, any waiver of a Party's rights or obligations under this Agreement must be made in writing signed by the waiving Party. No Party's action or failure to act will constitute approval of or acquiescence in a breach of this Agreement unless specifically agreed to in writing by the Parties.

12.16. Notices. Notices required or permitted hereunder shall be sufficiently given if made in writing and delivered either personally or by registered or certified mail, postage prepaid to the respective Parties, as follows:

To:

City of Corona
Attn: Tom Moody
Director of Utilities
755 Public Safety Way
Corona, CA 92878
[email protected]
With copy to:

City of Corona
Attn: Dean Derleth
City Attorney
400 S Vicentia Avenue
Corona, CA 92882
[email protected]

03586.00006\41943874.6
16 Construction, Operations and Maintenance Agreement
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To:

Home Gardens Sanitary District
Attn: Tracey LaBonte
13538 Magnolia Ave.

Corona, CA 92879
[email protected]
With copy to:

Harper & Burns LLP
Attn: Alan Burns
453 S. Glassell Street
Orange, CA 92866
[email protected]
To:

Jurupa Community Services District
Attn: Maria Ayala
Executive Services Manager/Secretary to
the Board of Director
11201 Harrel St
Jurupa Valley, CA 91752
[email protected]
With copy to:

Best Best & Krieger LLP
Attn: Mike Riddell
3390 University Ave, 5th Floor
Riverside, CA 92501
[email protected]
To:

City of Norco
Attn:Chad Blais, Public Works Director
2870 Clark Ave
Norco, CA 92860
[email protected]
With copy to:

Harper & Burns LLP
Attn: Colin Burns
453 S. Glassell Street
Orange, California 92866
[email protected]
To:

Western Municipal Water District
Attn: Craig Miller
General Manager
14205 Meridian Parkway
Riverside, CA 92518
[email protected]
With copy to:

Best Best & Krieger LLP
Attn: Holland Stewart
3390 University Ave, 5th Floor
Riverside, CA 92501
[email protected]
To:

Western Riverside County Regional
Wastewater Authority:

Attn: Gary Miller
Administrator
14205 Meridian Parkway
Riverside, CA 92518
[email protected]
With copy to:

Lagerlof LLP
Attn: James Ciampa
General Counsel
155 North Lake Avenue, 11th Floor
Pasadena, CA 91101
[email protected]
The Parties may from time to time change the address to which notice may be provided by providing notice of the change to the other Parties.

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12.17. Severability. If any section, clause or phrase of this Agreement or the application thereof to any Party or any other person or circumstance is for any reason held to be invalid by a court of competent jurisdiction, it shall be deemed severable, and the remainder of the Agreement or the application of such provisions to any other Party or to other persons or circumstances shall not be affected thereby. Each Party hereby declares that it would have entered into this Agreement, and each section, subsection, sentence, clause and phrase thereof, irrespective that one or more sections, subsections, sentences, clauses or phrases or the application thereof might be held invalid.

12.18. Further Assurances. Each Party will adopt, make, execute and deliver any and all such further resolutions, instruments and assurances as may be reasonably necessary or proper to carry out the purposes and intent of this Agreement.

12.19. Signatures. The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities.

SIGNATURES ON FOLLOWING PAGE(S)

03586.00006\41943874.6
S-1
Construction, Operations and Maintenance Agreement
Recycled Water Pump Station and On-Site Reservoir
IN WITNESS WHEREOF, the Parties have caused this Construction, Operations and Maintenance Agreement to be executed and attested by their proper officers thereunto duly authorized on the day and year set forth below, make the same effective on the date signed by the last of all Parties hereto.

Approved as to Form:
___________________________
City Attorney
Attest:
___________________________
City Clerk

CITY OF CORONA
By: ________________________________
City Manager
Dated: _____________________________
Approved as to Form:
___________________________
General Counsel

HOME GARDENS SANITARY DISTRICT
By: ________________________________
President
Dated: ______________________________
By: _________________________________
Secretary
Dated: ______________________________

03586.00006\41943874.6
S-2
Construction, Operations and Maintenance Agreement
Recycled Water Pump Station and On-Site Reservoir
Approved as to Form:
___________________________
General Counsel

JURUPA COMMUNITY SERVICES DISTRICT
By: _________________________________
General Manager
Dated: ______________________________
By: _________________________________
Executive Services Manager/Secretary
To the Board of Directors
Dated: ______________________________
Approved as to Form:
___________________________
City Attorney
Attest:
___________________________
City Clerk

CITY OF NORCO
By: _________________________________
Mayor
Dated: ______________________________

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S-3
Construction, Operations and Maintenance Agreement
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Approved as to Form:
___________________________
General Counsel

WESTERN MUNICIPAL WATER DISTRICT OF

RIVERSIDE COUNTY
By: _________________________________
President
Dated: ______________________________
By: _________________________________
Secretary
Dated: ______________________________
Approved as to Form:
___________________________
General Counsel

WESTERN RIVERSIDE COUNTY REGIONAL

WASTEWATER AUTHORITY
By: _________________________________

03586.00006\41943874.6
Construction, Operations and Maintenance Agreement
Recycled Water Pump Station and On-Site Reservoir
EXHIBITS A-1 AND A-2

POINTS OF CONNECTION

Recycled Water Pump Station
Exhibit A -1
Northerly
Pipeline –
24” (JCSD)
Western Riverside County Regional
Wastewater Authority
Treatment Plant
14634 River Road, Corona, CA 92880
Proposed Recycled
Water Pump Station Norco
Pipeline
- 12”
Southerly
Pipeline –
20”
(Corona)
River Road

Recycled Water Pump Station
Exhibit A -2
1 2
3 Southerly
Pipeline – 20”
(Corona)
Northerly
Pipeline – 24”
(JCSD)
Norco Pipeline – 12”
Southerly Pipeline (Corona) POC - N. 2283419.744 E. 6150882.666 Norco Pipeline POC - N. 2283367.415 E. 6150820.257
Northerly Pipeline POC - N. 2283399.011 E. 6150769.920
1 2
3

03586.00006\41969525.5
Construction, Operations and Maintenance Agreement
Northerly Recycled Water Pipeline

CONSTRUCTION, OPERATIONS AND MAINTENANCE

AGREEMENT
for the

NORTHERLY RECYCLED WATER PIPELINE
between

THE CITY OF CORONA,

HOME GARDENS SANITARY DISTRICT,

JURUPA COMMUNITY SERVICES DISTRICT,

CITY OF NORCO,

WESTERN MUNICIPAL WATER DISTRICT OF

RIVERSIDE COUNTY
and

WESTERN RIVERSIDE COUNTY REGIONAL

WASTEWATER AUTHORITY
in

RIVERSIDE COUNTY, CALIFORNIA

03586.00006\41969525.5
Construction, Operations and Maintenance Agreement
Northerly Recycled Water Pipeline

TABLE OF CONTENTS

1. DEFINITIONS

2. EFFECTIVE DATE: TERM; TERMINATION

3. CONSTRUCTION OF THE NORTHERLY PIPELINE PROJECT

4. OWNERSHIP OF IMPROVEMENTS; CAPACITY OWNERSHIP AND RIGHTS

5. OPERATIONS AND MAINTENANCE

6. CAPITAL COSTS; FUNDING; OPERATING AND CAPITAL COST

ALLOCATION

7. ENVIRONMENTAL COMPLIANCE

8. ADMINISTRATION

9. DEFAULTS; REMEDIES

10. INSURANCE

11. INDEMNIFICATION

12. MISCELLANEOUS PROVISIONS

03586.00006\41969525.5
1 Construction, Operations and Maintenance Agreement
Northerly Recycled Water Pipeline
Construction, Operations and Maintenance Agreement
for the
Northerly Recycled Water Pipeline
This CONSTRUCTION, OPERATIONS AND MAINTENANCE AGREEMENT (“Agreement”) is entered into by and between the City of Corona, a municipal corporation and general law city (“Corona”), Home Gardens Sanitary District, an independent special district organized under the laws of the State of California, (“Home Gardens”), Jurupa Community Services District, an independent special district organized under the laws of the State of California, (“JCSD”), City of Norco, a municipal corporation and charter city, (“Norco”), Western Municipal Water District of Riverside County, an independent special district organized under the laws of the State of California, (“Western Water”) and Western Riverside County Regional Wastewater Authority (“WRCRWA”), a joint powers authority organized under the laws of the State of California. Corona, Home Gardens, JCSD, Norco, Western Water and WRCRWA may be referred herein individually as a “Party” and collectively as the “Parties.”

RECITALS
A. Corona, Home Gardens, JCSD, Norco and Western Water are participating agencies of the joint powers authority known as Western Riverside County Regional Wastewater Authority and at times may enter into project agreements to further the goals and purposes of WRCRWA.

B. To support the implementation of a recycled water program through WRCRWA, the Parties intend to implement recycled water infrastructure projects and from time to time will enter into agreements with WRCRWA for certain projects identified and desired by any or all the parties to joint powers authority.

C. JCSD has identified potential distribution system improvements in its service area to utilize recycled water that has been treated by WRCRWA to Title 22 standards, but would need to construct certain pumping and conveyance infrastructure improvements to connect to the potential distribution system in its service area, and to allow the conveyance of recycled water to other agencies for beneficial use and potential sale, and seeks cooperation from the Parties for the construction, operation and maintenance of the infrastructure improvements.

D. This Agreement includes WRCRWA as a Party in part because of the accounting functions WRCRWA will undertake in connection with this Agreement and the parties do not intend for this project to constitute a “specific project” under the provisions of WRCRWA’s Joint of Exercise of Powers Agreement, as amended, and particularly Section 7 of that agreement.

E. To implement this Northerly Pipeline Project, as more fully described herein, the Parties have identified proposed capacity ownership rights by agency, addressed administrative and financial responsibilities and capacity allocations in these facilities, assigned lead agency responsibilities, and defined and allocated estimated construction costs.

F. The Parties desire to enter into this Agreement to formalize the construction, operations, and maintenance requirements for the proposed Northerly Recycled Water Pipeline

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(“Northerly Pipeline”) to deliver recycled water to a portion of the overall service area, further described in Section 1.11 below.

G. The Parties intend to enter into a separate agreement pertaining to the construction, operations and maintenance responsibilities for the Recycled Water Pump Station and On-Site Recycled Water Storage Reservoir, further described in Section 1.12 below.

AGREEMENT
The Parties, in consideration of their mutual covenants and for other good and valuable consideration, agree as follows:

1. DEFINITIONS. Capitalized terms used in this Agreement shall have the meanings set forth in this Section 1 or as otherwise defined herein this Agreement.

1.1. Capacity Ownership. Each Party’s ownership percentage of capacity in the various infrastructure components of the Recycled Project. The total capacity of each component of the infrastructure shall be equal to the sum of the Parties’ individual capacity ownership interests.

Capacity ownership of the Northerly Pipeline is specified in Section 4.2 of this Agreement.

1.2. Capital Costs. Costs incurred in connection with new capital facility construction, capacity expansion, or facility betterments. For the Northerly Pipeline, capital costs include, but are not limited to, construction costs for the above and below-grade improvements, appurtenances, metering, valves, supervisory control and data acquisition (“SCADA”,) and structures along with all construction related costs and services including bonding, legal services, engineering services during construction, construction geotechnical services, construction surveying, construction/program management, inspection, traffic control, and environmental monitoring and mitigation.

1.3. Design and Construction Lead Party. In cases for which new recycled water infrastructure is required to be designed and constructed for the Recycled Project, the design and construction lead Party shall procure and manage design and construction services as required.

The design and construction lead Party shall be reimbursed for such services, including Capital Costs, Project Development Costs, and Project Implementation Costs as described in this Agreement, or any future amendments agreed to by the Parties. In cases where the design and construction lead Party is not the Party with ultimate physical infrastructure ownership and the infrastructure is located on another Party’s property, the Parties will cooperate to provide access rights for construction activities. For purposes of this Agreement, JCSD is designated as the lead Party for the design and construction of the Northerly Pipeline. JCSD will require and be granted access rights from WRCRWA for construction of the Northerly Pipeline to the Point of Connection with the Pump Station.

1.4. Operating Costs. On-going fixed and variable operations and maintenance costs.

For the Northerly Pipeline, such costs include routine maintenance, repair, and replacement of perishable capital items and equipment, and administrative overhead costs such as insurance, budgeting, budget tracking, invoicing, and related general management expenses. Perishable items and equipment include but are not limited to items such as gaskets, valve seats, electrical switches and similar items that routinely wear during the use of a facility.

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3 Construction, Operations and Maintenance Agreement
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1.5. Operations and Maintenance Lead Party. The Parties to this Agreement designated as being responsible for the on-going operations and maintenance for each of the various infrastructure components of the Recycled Project. In cases where the operations and maintenance lead Party must access another Party’s property to operate and maintain a component of the Recycled Project infrastructure, the Parties will cooperate to provide access rights for required operations and maintenance activities. For purposes of this Agreement, JCSD is designated as the lead Party for the Northerly Pipeline and will require access rights from WRCRWA for construction, operations, and maintenance of the pipeline.

1.6. Physical Infrastructure Ownership. Legal ownership and physical custody of the various infrastructure components of the Recycled Project, with associated responsibilities.

Physical infrastructure ownership of the Northerly Pipeline is specified in Section 4.1 of this Agreement.

1.7. Points of Connection. The physical locations where the Northerly Pipeline, the Southerly Pipeline, and the Norco Pipeline will be interconnected to the Pump Station’s discharge piping. The points of connection shall be the basis for the delineation of ownership and agency responsibilities for these infrastructure components of the Recycled Project. The Points of Connection are depicted on the attached Exhibits A-1 and A-2, and by this reference incorporated herein. The coordinates for the Points of Connection are as follows:

Facility Northing Easting
Northerly Pipeline 2283399.011 6150769.920
Southerly Pipeline 2283419.744 6150882.666
Norco Pipeline 2283367.415 6150820.257

1.8. Project Development Costs. Costs associated with planning, preliminary design (including survey and geotechnical), program management, and environmental documentation.

1.9. Project Implementation Costs. Costs associated with final design, geotechnical, permits, surveying, right-of-way acquisition, facility agreement and legal services, encroachment permits, community outreach, and program management.

1.10. Recycled Water Cost Center. A specific section in WRCRWA’s annual operating and capital budget that categorizes and tracks all costs for facilities that are specifically applicable to the Recycled Project.

1.11. Recycled Water Infrastructure – Northerly Recycled Water Pipeline Project. The proposed 24-inch Northerly Recycled Water Pipeline is a proposed pipeline (the “Northerly Pipeline Project”) will be approximately 17,343 feet in length and is planned to start at the WRCRWA Treatment Plant property in Corona and transverse along River Road and north on Hellman Avenue up to Limonite Avenue. This Northerly Pipeline will provide conveyance capacity on behalf of the WRCRWA member agencies for their designated beneficial uses.

03586.00006\41969525.5
4 Construction, Operations and Maintenance Agreement
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1.12. Recycled Water Project (“Recycled Project”). The overall recycled water infrastructure required to deliver WRCRWA recycled water to Points of Connection for conveying the recycled water for the Parties’ designated beneficial uses. This recycled water infrastructure includes a proposed 10.15 million gallons per day (“MGD”) recycled water pump station and associated metering and discharge piping (“Pump Station”) to be built on the WRCRWA Treatment Plant property located at 14634 River Road, Corona, CA; an existing 1.0 million gallon treated recycled water reservoir located on the WRCRWA property that will provide equalization storage during pumping (“On-site Reservoir”); the proposed 24-inch diameter Northerly Pipeline, a 20-inch diameter recycled water pipeline (“Southerly Pipeline”); and an interconnection to an existing 12-inch diameter recycled water pipeline owned by Norco (“Norco Pipeline”). The Pump Station is a combined station that will consist of two banks of pumps: one to supply the Northerly Pipeline, one to supply the Southerly Pipeline and the existing Norco Pipeline, and one standby pump that will serve as a back-up for both banks of pumps.

1.13. Replacement and Refurbishment Costs (“R&R Costs”). Costs incurred to replace major capital items and facilities and refurbish infrastructure to maintain operation or extend useful service life.

2. EFFECTIVE DATE: TERM; TERMINATION.

2.1. Effective Date. The Effective Date shall be the date upon which all parties have executed this Agreement.

2.2. Term. The term of this Agreement shall commence on _____/_____/2024 and, unless earlier terminated, shall terminate concurrently with the WRCRWA Joint Exercise of Powers Agreement and addenda thereto.

2.3. Termination. A Party may terminate its participation in this Agreement by selling its Northerly Pipeline capacity rights in total to another Party or Parties under the procedures set forth in Section 4.3. All of the Parties to this Agreement may terminate the Agreement by unanimous written consent.

3. CONSTRUCTION OF THE NORTHERLY PIPELINE PROJECT.

3.1. Recycled Project Infrastructure Description of the Northerly Pipeline Project.

Infrastructure included in this Agreement is comprised of the 24-inch recycled water pipeline and related appurtenant facilities that will convey recycled water pumped from the Pump Station located at the WRCRWA Treatment Plant site, to a northerly terminus on Hellman Avenue at Limonite Avenue. The configuration of the proposed facilities included in the Recycled Project and the Point of Connection to the Recycled Water Pump Station and the terminus of the Northerly Pipeline are shown on Exhibits A-1 and A-2, attached hereto.

3.2. Northerly Pipeline Design and Construction. JCSD shall be the design and construction lead Party for the Northerly Pipeline Project. The Parties agree that the pipeline shall be designed and constructed in a manner generally consistent with the report commissioned by JCSD entitled: “Recycled Water Pipeline and Pump Station Preliminary Design Report,” prepared by Albert A. Webb Associates, dated April 2022 (“PDR”), and in accordance with JCSD’s design and operational standards. JCSD shall coordinate with the Parties on construction contract award and construction of the Northerly Pipeline Project and obtain required approvals from the Parties

03586.00006\41969525.5
5 Construction, Operations and Maintenance Agreement
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as described in Section 3.3. Since JCSD is designated as the lead Party for the construction of this Northerly Pipeline Project, the rules, laws and regulations that govern or are applicable to JCSD relative to the engagement of services agreements, construction contracts and public works improvement projects will apply to this Agreement.

3.3. Northerly Pipeline Project Coordination and Approvals. JCSD has coordinated with WRCRWA and the other Parties with capacity ownership throughout the final design and pre-bid phases of the Northerly Pipeline Project, and will coordinate through the construction contract award phases of the Northerly Pipeline Project to ensure the facility is designed and constructed in accordance with applicable design and operational standards and any State of California and federal grant or loan program funding material specification requirements, such as “Buy American” provisions. JCSD shall schedule and convene quarterly coordination meetings of the Parties to discuss construction related items, provide project construction and schedule updates, and to consider approval of Capital Costs as described below.

3.3.1. In the initial quarterly coordination meeting, which shall occur no later than twenty-five (25) days prior to the scheduled JCSD Board action to award the Northerly Pipeline construction contract, the representatives of the Parties with capacity ownership shall have obtained from their individual governing boards or councils, as needed, the authority to approve the following:

Initial Capital Costs for the Northerly Pipeline and related appurtenant facilities plus a ten percent (10%) Capital Cost contingency.

3.3.2. Quarterly coordination meetings shall be held throughout construction and final acceptance of the project. The representatives of the Parties shall have obtained from their individual governing boards or councils, as needed, the authority to approve the following additional Capital Costs:

3.3.2.1. Issuance of any construction change orders cumulatively exceeding ten percent (10%) of the original Northerly Pipeline construction contract amount.

3.3.2.2. Issuance of professional service contracts amendments cumulatively exceeding ten percent (10%) of each original contract amount.

3.3.3. Items placed on the agenda of the quarterly coordination meetings by JCSD that require approval of the Parties will be provided to the Parties no less than forty-five (45) days in advance of the quarterly meeting date. Approval of the initial Capital Costs, as described in Section 3.3.1, shall require unanimous consent of the Parties. Approval of additional Capital Costs, as described in Section 3.3.2.1 and Section 3.3.2.2, shall require the majority consent of the Parties. JCSD may schedule coordination meetings of the Parties more frequently than quarterly, if needed. The quarterly coordination meetings shall terminate after issuance of the Notice of Completion for the Northerly Pipeline project by JCSD.

3.4. Project Amendments. On and after the date JCSD has awarded the construction contract for the Northerly Pipeline Project, changes to the characteristics of the Northerly Pipeline Project, including the schedule for its completion, and any responsibilities of JCSD as the designated lead Party for design and construction of the Northerly Pipeline Project, or of the other Parties, may be requested in writing by any of the Parties and are subject to the approval of JCSD,

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6 Construction, Operations and Maintenance Agreement
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which approval will not be unreasonably withheld, provided that such changes or extensions of time for completion of the Northerly Pipeline Project shall be approved in the sole discretion of JCSD. Nothing in this Agreement shall be construed to require or allow completion of the Northerly Pipeline Project without full compliance with the California Environmental Quality Act (Public Resources Code Section 21000 et seq.; “CEQA”) and the National Environmental Policy Act of 1969 (42 USC 4231 et seq.), if applicable, but the necessity of compliance with CEQA and/or NEPA shall not justify, excuse, or permit a delay in completion of the Northerly Pipeline Project.

3.5. The Parties will grant all access and permits needed in order for JCSD to implement the Northerly Pipeline Project. The Parties shall provide timely responses and approvals when necessary or requested.

4. OWNERSHIP OF IMPROVEMENTS; CAPACITY OWNERSHIP AND RIGHTS.

4.1. Northerly Pipeline Infrastructure Owner. JCSD shall be the physical infrastructure owner of the Northerly Pipeline.

4.2. Capacity Ownership of Project. The Northerly Pipeline shall be designed to deliver approximately 10.15 MGD of recycled water. Ownership of Capacity in the Northerly Pipeline shall be allocated among the Parties, expressed as daily flows in MGD. Initial capacity ownership in the Northerly Pipeline shall be allocated in accordance with Table 1, below.

Table 1 – Northerly Pipeline Capacity Ownership
Agency Capacity (MGD) Percentage (%)
Corona 1.50 14.78%
Home Gardens 0.56 5.52%
Norco 1.70 16.75%
Western Water 1.54 15.17%
JCSD 4.85 47.78%
Total 10.15 100.00%
The sum of the individual capacity ownership percentages equates to approximately the nominal operating capacity of the Northerly Pipeline. No change in the percentage of capacity ownership by a Party shall occur by reason of any variance between actual use and the nominal capacity of the Northerly Pipeline, except by amendment of this Agreement.

4.3. Capacity Ownership Adjustments and Transfers. If a Party determines that it wishes to adjust its capacity ownership in the Northerly Pipeline, the Party may buy, sell, or enter into a leasing arrangement with another Party or Parties to make such adjustments. Such a transaction may only occur among WRCRWA member agencies. In addition, Parties may wish to selectively participate in future capital projects. In such cases where an ownership transfer changes capacity ownership, the allocation of Capital Costs, R&R Costs and Operating Costs shall be adjusted, accordingly. Should a Party or Parties sell all of their capacity in the Northerly Pipeline to another WRCRWA Party or Parties, the Party or Parties selling all of their capacity ownership in the Northerly Pipeline shall have no further financial obligations or authority under

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this Agreement. All transactions that result in a change in capacity of the facilities shall be promptly reported to JCSD and WRCRWA in writing for accounting, budgeting, and cost allocation purposes, and the Parties agree to amend this Agreement to reflect such changes in capacity ownership interests as soon as practical following such changes.

5. OPERATIONS AND MAINTENANCE.

5.1. Northerly Pipeline Operations and Maintenance. JCSD shall be the operations and maintenance lead Party and shall be responsible for operations and maintenance of the Northerly Pipeline in a manner consistent with industry standards and in accordance with Section 8.

5.2. Operations. Upon issuance of the Notice of Completion by JCSD and commencement of operations of the Northerly Pipeline, JCSD shall assume physical control of the facility and be responsible for all operations and maintenance decisions and regulatory compliance for the Northerly Pipeline. Northerly Pipeline Project related updates shall be provided by JCSD to the Parties, as needed, during WRCRWA regular meetings.

6. CAPITAL COSTS; FUNDING; OPERATING AND CAPITAL COST ALLOCATION.

6.1. Northerly Pipeline Costs. The Parties previously executed a Memorandum of Understanding between them identifying a preliminary estimate of the Capital Cost for the Northerly Pipeline Project. Subsequently, JCSD has continued to advance the Northerly Pipeline Project and is currently in the final design phase. The currently estimated costs for the project are as follows:

Project Development Costs and Project Implementation Costs = $ 1,340,000 Plus Capital Costs Including a 10% Construction Contingency = $15,323,000 Equals Total Estimated Cost Obligation of the Parties = $16,663,000 As the Northerly Pipeline Project proceeds, project approvals and cost reconciliation shall be performed pursuant to Section 3.3 and Section 6.3.

6.2. Financing. JCSD shall seek Clean Water State Revolving Fund (CWSRF) financing for eligible Project Development Costs, Project Implementation Costs, and Capital Costs associated with the Northerly Pipeline. CWSRF funding is a low interest water infrastructure loan program administered on behalf of the State of California through the California State Water Resources Control Board. The CWSRF provides financing for recycled water and other clean water projects. The CWSRF program derives its funding from the United States Environmental Protection Agency. The Parties acquiring capacity in the Northerly Pipeline and seeking CWSRF financing through JCSD acknowledge that financing payments shall be subject to the terms and conditions of JCSD’s CWSRF financing agreement with the State. JCSD shall be responsible for making all CWSRF repayments to the State and the Parties with capacity ownership in the Northerly Pipeline shall proportionately reimburse JCSD for such repayments based upon each Party’s capacity ownership shown in Table 1, plus fees associated with the administration of each Party’s invoices.

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6.3. Funding for Project Development and Project Implementation Costs and Completion of Northerly Pipeline Project. Upon the Effective Date of this Agreement, each Party shall be obligated to make a series of payments correlating to project milestones for their share of Project costs based upon their percentage of capacity ownership in the Northerly Pipeline as shown in Table 1. Payments shall be made in accordance with the following milestones and shall be due and payable on the schedule indicated. Forty-five (45) days prior to each milestone payment due date, JCSD shall prepare and submit an itemized invoice to each Party for payment to JCSD or for reimbursement from JCSD. Project milestones and required payments and reimbursements are as follows:

6.3.1. Milestone No. 1 – Completion of Project Development Activities, Project Implementation Activities, and Final Design.

6.3.1.1. Payment includes all Project Development and Project Implementation activities including final design.

6.3.1.2. Due Date: sixty (60) days after JCSD Board action to award the Northerly Pipeline construction contract.

6.3.2. Milestone No. 2 – Reconciliation and Reimbursement of Eligible CWSRF Costs.

6.3.2.1. JCSD shall prepare a final reconciliation of all Project Development Costs, Project Implementation Costs and Capital Costs that are eligible for financing under JCSD’s CWSRF agreement with the State of California.

6.3.2.2. Any costs paid by the Parties under Milestone No. 1 that are eligible for financing under the CWSRF will be reimbursed by JCSD to the Parties from CWSRF proceeds.

6.3.2.3. Due Date: Thirty (30) days after JCSD’s receipt of loan proceeds from the state for eligible Project Development Costs and Project Implementation Costs.

6.3.3. Milestone No. 3 – Commencement of SRF Reimbursement Payments.

6.3.3.1. Payment includes proportionate reimbursement to JCSD for CWSRF loan repayments made by JCSD for the thirty (30) year term of the CWSRF to the State of California.

6.3.3.2. Due Date: Annual payments, due sixty (60) days prior to the due date of JCSD’s annual CWSRF loan repayments to the State.

6.4. Operating and Capital Cost Allocations.

6.4.1. Northerly Pipeline Operating Costs. The allocation of all operating costs for the Northerly Pipeline among the Parties shall be based upon each Party’s capacity ownership as expressed in Table 1.

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6.4.2. Capital and R&R Costs. Capital and R&R Costs shall be based upon each Party’s capacity ownership in the Northerly Pipeline as expressed in Table 1. Establishment of an R&R fund and contributions to the fund shall be included in the annual budgeting process described in Section 8.2.

6.5. Records Retention. The Parties to this Agreement shall retain or cause to be retained for audit for a period of three (3) years from the date of final payment, all records and accounts relating to the work on the Project or the execution of this Agreement.

7. ENVIRONMENTAL COMPLIANCE.

7.1. JCSD is the lead agency for environmental review of the Northerly Pipeline Project under the California Environmental Quality Act (“CEQA”) and has completed that requirement with the adoption of an Initial Study/Mitigated Negative Declaration on September 28, 2015.

7.2. JCSD is the lead agency under CEQA for the design and construction work of the Northerly Pipeline Project. All responsibilities and obligations of JCSD for the design and construction work are conditioned upon compliance with CEQA as provided for under this Section 7 of the Agreement.

8. ADMINISTRATION.

8.1. Governance. Upon issuance of the Notice of Completion for the Northerly Pipeline Project by JCSD and commencement of operations of the Northerly Pipeline, JCSD shall coordinate with the WRCRWA Administrator and provide Operating Costs, Capital Costs, and R&R Costs associated with the Northerly Pipeline for inclusion in the Recycled Water Cost Center portion of WRCRWA’s annual budget. For administrative efficiency, approval by the Parties of the Recycled Water Cost Center portion of the WRCRWA budget and expenses related to the Northerly Pipeline, along with any applicable operating policy decisions, will be conducted by members of the WRCRWA Board of Directors representing Parties with capacity ownership in the Recycled Project. All voting shall be in accordance with the requirements of the WRCRWA Joint Exercise of Powers Agreement, applicable addenda, and adopted WRCRWA policies and procedures.

8.2. Budget Administration. One hundred eighty (180) days prior to the Recycled Project becoming operational, JCSD shall prepare a draft annual operating, capital, and R&R budget for the Northerly Pipeline. The proposed draft budget shall be incorporated into the Recycled Water Cost Center portion of WRCRWA’s budget for categorizing and tracking all costs associated with the Northerly Pipeline portion of the Recycled Project. The draft budget shall include all costs for operations and maintenance and R&R funding and shall be organized and approved by the Parties in a manner that aligns with accounting, financial reporting, and budgeting practices and policies applicable to the Recycled Project assets for which WRCRWA is responsible.

8.2.1. Each Party shall be financially responsible for its allocation of costs for the operations and maintenance, R&R, and capital expansions of the Northerly Pipeline that are specifically applicable to the Recycled Project in accordance with Section 6.4 of this Agreement.

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8.2.2. JCSD shall coordinate with WRCRWA and provide on a quarterly basis all operations and maintenance, R&R, and capital expansion expenses incurred during the prior quarter for the Northerly Pipeline for incorporation into WRCRWA’s invoicing of the Parties for the Recycled Project.

8.2.3. Each Party shall be invoiced by WRCRWA for the Recycled Project costs not paid under Section 6.3, above, including those attributable to the Northerly Pipeline, in the same manner, timing, and terms as WRCRWA’s normal invoicing for costs related to the WRCRWA Treatment Plant and collection system. WRCRWA will include Northerly Pipeline costs described in Section 6.4 in its invoicing and will remit any amounts to JCSD within thirty (30) days of receipt of such payments.

8.3. Authorized Representatives. Each Party's Authorized Representative will have the authority to represent its Party and make decisions for that Party under this Agreement. Each Party's Authorized Representative is responsible for determining when a particular decision requires the prior authorization of the Party's governing board or council.

8.4. Disputes. In the event of dispute regarding interpretation or implementation of this Agreement, the Authorized Representatives of each of the Parties shall endeavor, in good faith, to resolve the dispute by meeting within 30 days after the request of a Party to this Agreement. If after meeting to attempt to resolve the dispute and the dispute is still unresolved, the Parties shall use the services of a mutually acceptable mediator in an effort to resolve the dispute by nonbinding mediation. The Parties shall share equally the cost of the mediator. If the Parties are unable to agree on a mediator or are still unable to resolve the dispute after mediation, unless the Parties otherwise agree, the matter may be resolved by litigation and any Party may at its option pursue any available legal remedy.

9. DEFAULTS; REMEDIES. In the event that a Party materially defaults in performance of any of its obligations or responsibilities under this Agreement, any or all of the non-defaulting parties shall have the right to pursue all remedies available at law or in equity, against the defaulting party, provided such default remains uncured for more than thirty (30) days after the defaulting party receives notice of such default. The Parties are not required to exhaust the process for resolution of disputes as provided in Section 8.4 above before seeking any remedies against a defaulting party who has failed to cure such default within the time prescribed herein.

10. INSURANCE.

10.1. Construction and Service Contract Insurance Requirements. JCSD shall require that all persons or entities hired to perform services regarding the Northerly Pipeline Project to obtain insurance of the types and in the minimum amounts described below. Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor, its agents, representatives, employees or subcontractors. (a) Commercial General Liability Insurance (“CGL”). CGL insurance coverage on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $2,000,000.00 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to the Northerly Pipeline Project or the general limit shall be twice the required occurrence limit.

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Corona, Home Gardens, JCSD, Norco, Western Water and WRCRWA, their respective officials, officers, employees, agents, and consultants shall be named as “Additional Insured” with respect to liability arising out of work, performance of the services or operations performed by or on behalf of the Contractor on the Northerly Pipeline Project, including materials, parts or equipment furnished in connection with such work, performance or operations and automobiles owned, leased, hired or borrowed by or on behalf of the Contractor and shall contain no special limitations on the scope of coverage or the protection afforded to these insured; and contain standard separation of insured provisions.
(b) Automobile Liability Insurance. Automobile liability insurance covering any auto, with limits no less than $2,000,000.00 per accident for bodily injury and property damage. Such insurance shall include coverage for owned, hired and non-owned automobiles. (c) Professional Liability Insurance. Errors and omissions liability insurance with a limit of not less than $1,000,000.00. Professional liability insurance shall only be required of design or engineering professionals.
(d) Workers’ Compensation Insurance. Workers’ compensation insurance as required by the State of California, with statutory limits and employers’ liability insurance with limits of not less than $1,000,000.00 per accident for bodily injury or disease. (e) Builder’s Risk. (Course of construction) insurance utilizing an “All Risk” (Special Perils) coverage form, with limits equal to the completed value of the Northerly Pipeline Project and no coinsurance penalty provisions.
(f) Contractors’ Pollution Legal Liability; Asbestos Liability; Errors and Omissions with limits no less than $2,000,000 per occurrence or claim, and $4,000,000 policy aggregate.

If the Contractor maintains broader coverage and/or higher limits than the minimums shown above, the Additional Insureds shall be entitled to the broader coverage and/or higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the Additional Insured.

10.2. Post Construction Insurance. Upon completion of the Northerly Pipeline Project, the Party who owns the infrastructure improvements shall be responsible for procuring and maintaining adequate insurance coverages, or a program of self-insurance, for the improvements.

11. INDEMNIFICATION.

11.1. Mutual Indemnification. Pursuant to the provision of Section 895 of the California Government Code, each of the Parties to this Agreement agrees to indemnify and hold harmless the other Parties from all loss or liability for damage, actual or alleged, to person or property arising out of or resulting from the indemnifying Party’s acts or omissions in the performance of this Agreement. In the event of a third-party loss caused by the negligence, wrongful act or omission of any Parties to this Agreement, each Party shall bear financial responsibility in proportion to its percentage of fault as may be mutually agreed between them or judicially determined. The provisions of California Civil Code Section 2778 regarding interpretation of indemnity agreements are hereby incorporated.

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11.2. Construction Contract Indemnification Provisions. JCSD will ensure the construction contract(s) include an indemnification obligation imposed upon any contractors and any subcontractors in favor of all the Parties to this Agreement in the form or substantially in the form provided below:

To the fullest extent permitted by law, the contractor will defend, indemnify and hold Corona, Home Gardens, JCSD, Norco, Western Water and WRCRWA, their respective officers, directors, officials (elected or appointed), members, employees and representatives ("Indemnitees") harmless from any and all claims, losses, damages, liabilities and expenses (including but not limited to) legal, expert witness and consulting fees and costs) arising out of, or resulting from, the acts or omissions, in whole or in part (including but not limited to breach of contract), of the contractor, its subcontractors and their respective officers, directors, partners, agents, employees or anyone for whom they may be liable. Notwithstanding the above, the contractor will not be required to defend, indemnify and hold harmless an Indemnitee for the Indemnitee's own active negligence, sole negligence or willful misconduct, provided that the contractor will continue to indemnify and defend the indemnitee to the extent and in proportion to the degree that the indemnitee is not actively negligent. The indemnification obligations set forth in this paragraph will not be limited in any way by the amount or type of damages, compensation or benefits payable by or for the contractor under insurance policies, workers compensation laws, disability benefit laws or other employee benefit laws.

The contractor will defend, indemnify, and hold Indemnitees harmless from any and all claims, stop payment notices, or connected legal proceedings filed by the contractor or its subcontractors, suppliers, or other persons or entities claiming by or through the contractor by reason of having provided labor, materials, and equipment relating to the Northerly Pipeline Project.

12. MISCELLANEOUS PROVISIONS.

12.1. Other Agreements Not Prohibited. Other agreements by and between the Parties of this Agreement or any other entity are neither prohibited nor modified in any manner by execution of this Agreement.

12.2. Assignment. Except as otherwise provided in this Agreement, the rights and obligations of any Party to this Agreement shall not be assignable or transferable without the consent of the governing body of each Party hereto.

12.3. Section Headings. The section headings herein are for convenience of the Parties only, and shall not be deemed to govern, limit, modify or in any manner affect the scope, meaning or intent of the provisions or language of this Agreement.

12.4. Jurisdiction; Venue. This Agreement is made in the State of California, under the Constitution and laws of such State, and shall be construed and enforced in accordance with the laws of such State. This Agreement will be governed by the laws of the State of California. The Parties agree that venue for any legal proceeding brought under this Agreement will be in the County of Riverside, State of California.

12.5. Construction of Language; Interpretation. It is the intention of the Parties hereto that if any provision of this Agreement is capable of two constructions, one of which would render

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the provision void and the other of which would render the provision valid, then the provision shall have the meaning which renders it valid. The terms and conditions of this Agreement will be interpreted according to their plain meaning, and not strictly for or against any Party. Any rule of construction or interpretation to the contrary will be of no force or effect with respect to this Agreement.

12.6. Nondiscrimination. Any party or contractor shall not discriminate in the provision of services, allocation of benefits, accommodation in facilities, or employment of personnel on the basis of ethnic group identification, race, religious creed, color, national origin, ancestry, physical handicap, medical condition, marital status or sex in the performance of this Agreement; and, to the extent they shall be found to be applicable hereto, shall comply with the provisions of the California Fair Employment and Housing Act (Gov. Code 12900 et. seq), the Federal Civil Rights Act of 1964 (P.L. 88-352), the Americans with Disabilities Act of 1990 (42 U.S.C. S1210 et seq.) and all other applicable laws or regulations.

12.7. Cooperation. The Parties recognize the necessity and hereby agree to cooperate with each other in carrying out the purposes of this Agreement.

12.8. Conflict of Interest. For the term of this Agreement, no member, officer or employee of any of the Parties, during the term of his or her service with a Party, as the case may be, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

12.9. Successors. This Agreement shall be binding upon and shall inure to the benefit of the successors of the Parties hereto.

12.10. Enforcement. The Parties are hereby authorized to take any and all legal or equitable actions, including but not limited to an injunction and specific performance, necessary or permitted by law to enforce this Agreement.

12.11. Integration; Recitals. This Agreement constitutes the full and complete Agreement of the Parties. The above Recitals are true and correct and are incorporated herein.

12.12. Amendment. Except as otherwise may be provided in this Agreement, neither this Agreement nor any provision hereof may be modified or amended except by a written instrument signed by the Parties.

12.13. Counterparts. This Agreement may be executed in counterparts, each of which shall constitute an original and all of which together shall constitute one and the same Agreement.

12.14. No Third Party Beneficiaries. All of the covenants contained in this Agreement are for the express benefit of each and all such Parties, this Agreement is not intended to benefit any third parties, and any such third party beneficiaries are expressly disclaimed.

12.15. Waiver. Except as otherwise specifically provided in this Agreement, any waiver of a Party's rights or obligations under this Agreement must be made in a writing signed by the waiving party. No Party's action or failure to act will constitute approval of or acquiescence in a breach of this Agreement unless specifically agreed to in writing by the Parties.

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12.16. Notices. Notices required or permitted hereunder shall be sufficiently given if made in writing and delivered either personally or by registered or certified mail, postage prepaid to the respective Parties, as follows:

To:

City of Corona
Attn: Tom Moody
Director of Utilities
755 Public Safety Way
Corona, CA 92878
[email protected]
With copy to:

City of Corona
Attn: Dean Derleth
City Attorney
400 S Vicentia Avenue
Corona, CA 92882
[email protected]
To:

Home Gardens Sanitary District
Attn: Tracey LaBonte
13538 Magnolia Ave.

Corona, CA 92879
[email protected]
With copy to:

Harper & Burns LLP
Attn: Alan Burns
453 S. Glassell Street
Orange, CA 92866
[email protected]
To:

Jurupa Community Services District
Attn: Maria Ayala
Executive Services Manager/Secretary to
the Board of Director
11201 Harrel St
Jurupa Valley, CA 91752
[email protected]
With copy to:

Best Best & Krieger LLP
Attn: Mike Riddell
3390 University Ave, 5th Floor
Riverside, CA 92501
[email protected]
To:

City of Norco
Attn: Chad Blais, Public Works Director
2870 Clark Ave
Norco, CA 92860
[email protected]
With copy to:

Harper & Burns LLP
Attn: Colin Burns
453 S. Glassell Street
Orange, California 92866
[email protected]
To:

Western Municipal Water District
Attn: Craig Miller
General Manager
14205 Meridian Parkway
Riverside, CA 92518
[email protected]
With copy to:

Best Best & Krieger LLP
Attn: Holland Stewart
3390 University Ave, 5th Floor
Riverside, CA 92501
[email protected]

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To:

Western Riverside County Regional
Wastewater Authority:

Attn: Gary Miller
Administrator
14205 Meridian Parkway
Riverside, CA 92518
[email protected]
With copy to:

Lagerlof LLP
Attn: James Ciampa
General Counsel
155 North Lake Avenue, 11th Floor
Pasadena, CA 91101
[email protected]
The Parties may from time to time change the address to which notice may be provided by providing notice of the change to the other Parties.

12.17. Severability. If any section, clause or phrase of this Agreement or the application thereof to any Party or any other person or circumstance is for any reason held to be invalid by a court of competent jurisdiction, it shall be deemed severable, and the remainder of the Agreement or the application of such provisions to any other Party or to other persons or circumstances shall not be affected thereby. Each Party hereby declares that it would have entered into this Agreement, and each section, subsection, sentence, clause and phrase thereof, irrespective that one or more sections, subsections, sentences, clauses or phrases or the application thereof might be held invalid.

12.18. Further Assurances. Each Party will adopt, make, execute and deliver any and all such further resolutions, instruments and assurances as may be reasonably necessary or proper to carry out the purposes and intent of this Agreement.

12.19. Signatures. The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities.

SIGNATURES ON FOLLOWING PAGE(S)

03586.00006\41969525.5
S-1
Construction, Operations and Maintenance Agreement
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IN WITNESS WHEREOF, the Parties have caused this Construction, Operations and Maintenance Agreement to be executed and attested by their proper officers thereunto duly authorized on the day and year set forth below, make the same effective on the date signed by the last of all Parties hereto.

Approved as to Form:
___________________________
City Attorney
Attest:
___________________________
City Clerk

CITY OF CORONA
By: _________________________________
City Manager
Dated: ______________________________
Approved as to Form:
___________________________
General Counsel

HOME GARDENS SANITARY DISTRICT
By: _________________________________
President
Dated: ______________________________
By: _________________________________
Secretary
Dated: ______________________________

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Construction, Operations and Maintenance Agreement
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Approved as to Form:
___________________________
General Counsel

JURUPA COMMUNITY SERVICES DISTRICT
By: _________________________________
General Manager
Dated: ______________________________
By: _________________________________
Executive Services Manager/Secretary to the
Board of Directors
Dated: ______________________________
Approved as to Form:
___________________________
City Attorney
Attest:
___________________________
City Clerk

CITY OF NORCO
By: _________________________________
Mayor
Dated: ______________________________

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Construction, Operations and Maintenance Agreement
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Approved as to Form:
___________________________
General Counsel

WESTERN MUNICIPAL WATER DISTRICT OF

RIVERSIDE COUNTY
By: _________________________________
President
Dated: ______________________________
By: _________________________________
Secretary
Dated: ______________________________
Approved as to Form:
___________________________
General Counsel

WESTERN RIVERSIDE COUNTY REGIONAL

WASTEWATER AUTHORITY
By: _________________________________

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EXHIBITS A-1 AND A-2

POINTS OF CONNECTION

Northerly Pipeline
Exhibit A -1
River Road
Hellman Ave.

Proposed Northerly
Pipeline (JCSD)
24” diameter
17,343 ft. length
American Heroes Park
6608 Hellman Ave.,
Eastvale, CA 92880
Western Riverside County
Regional Wastewater
Authority
Treatment Plant
14634 River Road, Corona,
CA 92880
Limonite Ave.

Northerly Pipeline
Exhibit A -2
Proposed
Northerly
Pipeline –
24” (JCSD)
Western Riverside County Regional
Wastewater Authority
Treatment Plant
14634 River Road, Corona, CA 92880
Norco
Pipeline
- 12”
Southerly
Pipeline
- 20”
(Corona)
1 Northerly Pipeline POC - N. 2283399.011 E. 6150769.920 1 River Road
Proposed Recycled
Water Pump Station

City Council

STAFF REPORT
Date: April 17, 2024 Agenda Item:

3.D.

To: Honorable Mayor and City Council Members
From: Amanda Hamilton, Facilities and Maintenance
Director
Prepared By: Amanda Hamilton, Facilities and Maintenance Director
Department: Facilities and Maintenance
SUBJECT:

Approval of request for the advancement of Fiscal Year 2024-25 Community Development Block Grant Funds for the Pikes Peak Park ADA Synthetic Poured in Place Surface Project
RECOMMENDATION:

Approve the request for the advancement of Fiscal Year 2024-25 Community Development Block Grant Funds for the Pikes Peak Park ADA Synthetic Poured in Place Surface Project
SUMMARY:

The City Council approved the submission of FY 2024-25 Community Development Block Grant (CDBG) application for the Corydon Staging Area ADA Restroom Replacement Project. The County did not approve the project and recommended asking for an advancement of the FY 2024-25 funds to put towards the already approved Pikes Peak Park ADA Synthetic Poured in Place Surface Project.

BACKGROUND:

On November 15, 2023, the City Council approved the submission of the FY 2024-25 CDBG application for the Corydon Staging Area ADA Restroom Replacement Project.

The program administrators with the County of Riverside Department of Housing and Workforce Solutions determined this project is not the best fit for CDBG based on the following:
 Based on the amount/cost of deficiencies identified on the CASp being minimal versus the proposed plan to purchase a whole new pre-fabricated restroom at a greater cost that would need more funding.

 Project location is not an actual recreational facility, but a parking lot. The parking lot is not included in the plan, so there is no eligibility code we can match it to.

Staff explained the high volume of activity that occurs at the Corydon Staging Area as well as the fact that the contractor currently using this location for a staging area for the restoration project in the riverbed that will also be restoring the parking lot to meet ADA requirements. Regardless, the project will not be approved by the County.

Staff had multiple discussions with the County and determined the best course of action would be to designate the funds to the Pikes Peak Park Poured in Place Project

2.NR.60-22 which was approved by City Council on December 1, 2021. Rather than go through the application process of a project that has already been approved, it was recommended to ask for an advancement of FY 2024-25 funds. An advancement makes the funds available earlier than going through the application process.

FISCAL IMPACT:

Current CDBG funding for Pikes Peak Park Poured In Place Project 2.NR.60-22 is $218,094 and the additional funding of $60,232 will bring the total available CDBG funding for this project to $278,326.

RELATIONSHIP TO STRATEGIC PLAN:

This item closely aligns with Strategic Direction 5: Infrastructure and Asset Management: Ensure timely preservation, replacement, improvement and acquisition of infrastructure and capital assets.

REVIEWED AND APPROVED BY:

Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney

City Council

STAFF REPORT
Date: April 17, 2024 Agenda Item:

3.E.

To: Honorable Mayor and City Council Members
From: Amanda Hamilton, Facilities and Maintenance
Director
Prepared By: Amanda Hamilton, Facilities and Maintenance Director
Department: Facilities and Maintenance
SUBJECT:

Consider resolutions for ordering the preparation of the Engineer's Report for Landscape Maintenance Districts 1,2,3, 4 and 5
RECOMMENDATION:

Adopt Resolution No. 2024-12 - A Resolution of the City Council of the City of Norco, California, Ordering the Preparation of the Engineer’s Report for Landscape Maintenance District No. 1 (Beazer, Tract 28765) to Establish Annual Assessments for Fiscal Year 2024-2025
Adopt Resolution No. 2024-13 - A Resolution of the City Council of the City of Norco, California, Ordering the Preparation of the Engineer’s Report for Landscape Maintenance District No. 2 (Western Pacific, Tract 25779) to Establish Annual Assessments for Fiscal Year 2024-2025
Adopt Resolution No. 2024-14 - A Resolution of the City Council of the City of Norco, California, Ordering the Preparation of the Engineer’s Report for Landscape Maintenance District No. 3 (Centex, Tract 28626) to Establish Annual Assessments for Fiscal Year 2024-2025.

Adopt Resolution No. 2024-15 - A Resolution of the City Council of the City of Norco, California, Ordering the Preparation of the Engineer’s Report for Landscape Maintenance District No. 4 (Norco Ridge Ranch, Tracts 29588 and 29589) to Establish Annual Assessments for Fiscal Year 2024-2025.

Adopt Resolution No. 2024-16 - A Resolution of the City Council of the City of Norco, California, Ordering the Preparation of the Engineer’s Report for Landscape Maintenance District No. 5 (Hawks Crest – Tract 30230) to Establish Annual Assessments for Fiscal Year 2024-2025.

SUMMARY:

This fiscal year, staff retained Webb Municipal Finance, LLC, for the purpose of assisting with the Annual Levy of all five Landscape Maintenance Districts. This scope of work includes the preparation and filing of the engineer reports with the City Clerk and County Audit-Controller in accordance with the Landscape and Lighting Act of 1972 (the "Act"). Staff is requesting that the Norco City Council direct Webb Municipal Finance, LLC to prepare and file the Engineer’s Annual Levy Reports concerning the levy and collection of assessments for the five Districts for the Fiscal Year commencing July 1, 2024, and ending June 30, 2025, in accordance with Chapter 3, Section 22622 of the Act.

BACKGROUND:

The Act which is set forth in California Streets and Highways Code sections 22500- 22679, provides for the levy and collection of assessments by the County of Riverside for the City of Norco to pay the maintenance and servicing costs of all improvements and facilities related thereto, including for the installation, construction, and maintenance of landscaping, parks, and recreational facilities. Landscape Maintenance District No. 1 (Beazer), Landscape Maintenance District 2 (Western Pacific), Landscape Maintenance District 3 (Centex), Landscape Maintenance District 4 (Norco Ridge Ranch), and Landscape Maintenance District 5 (Hawks Crest) were established pursuant to the Act.

RKA Consulting Group has historically assisted the City of Norco with the Annual Levy for all five districts. Over the years we have found that these services are more financial in nature, and is best to contract this work with a Special Tax Consulting Firm offering comprehensive services to public agencies. Costs for these assessment services remain consistent amongst the two firms.

In order to continue the annual assessments of all five of these Districts, the Act and the Assessment Law require the City Council to conduct certain proceedings each year it intends to extend the life of the assessments for each District. Such proceedings generally require the adoption of intention resolutions, the preparation of an Engineer's Report, the holding of a noticed public hearing, and the adoption of a resolution levying the assessments. The formation of the five Districts allow a total annual levy of assessments to be increased annually by an amount not to exceed the increase in the Consumer Price Index (CPI) applicable to the City of Norco. The Engineer’s Reports for the Landscape Maintenance Districts shall reflect provisions and related assessments in accordance with the requirements of Articles XIIIC and XIIID of the California Constitution as enacted by the passage of Proposition 218, also referred to as “The Right to Vote on Taxes Act,” as approved by the voters of the State of California on November 5, 1996.

Pursuant to the Act, an Engineer's Report will be prepared for all five Districts containing the following information:
 A description of the improvements or services to be financed  An estimate of the cost of the improvements or services

 An assessment diagram depicting the boundaries of each of the assessment districts and the parcels contained in each
 A description of the method of apportioning the assessments against properties in each of the assessment districts
 An assessment roll listing the parcels to be assessed and the proposed assessment against each.

The Engineer's Reports will be presented to the City Council at the May 15, 2024 meeting. Attachment A shows the schedule for the annual levy with a Public Hearing on June 5, 2024.

FISCAL IMPACT:

The cost of professional services to initiate proceedings for the levy and collection of assessments for the Fiscal Year 2024-25 Districts’ Annual Levy authorization is included in the Fiscal Year 2023-24 budget for the administration of the Districts in the amount of $19,500.

RELATIONSHIP TO STRATEGIC PLAN:

This item closely aligns with Strategic Direction No. 3, Economic Development and Financial Stability: Assure financial stability by expanding development efforts, diversifying revenue sources and continuing prudent financial management.

REVIEWED AND APPROVED BY:

Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney ATTACHMENT(S):

Attachment A

3.E. Resolution 2024 -12 LMD No. 1 Initiating Proceedings

3.E. Resolution 2024-13 LMD No. 2 Initiating Proceedings

3.E. Resolution 2024-14 LMD No. 3 Initiating Proceedings

3.E. Resolution 2024-15 LMD No. 4 Initiating Proceedings

3.E. Resolution 2024-16 LMD No. 5 Initiating Proceedings

City of Norco
Landscape Maintenance Districts
FY 2024-25 Schedule for the Annual Levy
City Council meets: Every 1st and 3rd Wednesday of the month; 7:00pm City Council Agenda Deadline: 15 days prior to Council meeting WMF = Webb Municipal Finance, LLC
City = City of Norco

DESCRIPTION DUE DATE
PARTY

RESPONSIBLE
Kick off Meeting. February 26, 2024 WMF, City Staff
WMF reviews all LMD documents March 2024 WMF
WMF prepares Resolution of Initiation for legal counsel review and approval March 21, 2024 WMF City Staff sends WMF budget numbers to update the Preliminary Engineer’s Report. April 1, 2024 City Staff
WMF updates CPI and sends budgets to the City for review April 15, 2024 WMF Initiation Meeting City Council adopts resolution allowing WMF to prepare the Engineer’s Report April 17, 2024 City Council,City Staff WMF assists City Staff with LMD 2 and 3 annual maintenance letter April 2024 WMF, City Staff City mails out letters to residents April 2024 City Staff WMF sends City Preliminary Reports for review and approval April 24, 2024 WMF WMF prepares Staff Report, Resolution of Intention and Resolution Preliminarily Approving the Engineer’s Report. April 24, 2024 WMF City sends WMF comments on Engineer’s Reports April 29, 2024 City Staff WMF sends City Final Reports April 30, 2024 WMF
Residents’ presentation at City Hall May 2024 City Staff, WMF Intent Meeting - City Council reviews the Preliminary Engineer’s Report and adopts the Resolution of Intention and Resolution Preliminarily Approving the Engineer’s Report.

May 15, 2024
City Council,
City Staff,
WMF
WMF prepares Staff Reports and Resolutions to be adopted at the Public Hearing for legal counsel review:

1. Resolution Ordering the Levy and Collection of Assessments Resolution Approving the Final Engineer’s Reports
May 15, 2024 WMF
City Clerk posts the adopted Resolution of Intent on the Council bulletin board and publishes it in the newspaper.

No later than
May 24, 2024 City Clerk
Public Hearing – City Council allows the public to ask questions and “hear and be heard.” City Council then reviews and approves the Final Engineer’s Report, adopts Resolutions Ordering the Levy and Collection of Assessments, and Resolution Approving the Final Engineer’s Report.

June 5, 2024
City Council,
City Staff,
WMF
City Clerk or City Staff provide WMF with copies of the signed Resolution Ordering the Levy and Collection of assessments. July 5, 2024 City Clerk or City Staff WMF transmits the resolution and assessments to the County AuditorController in the required format for collection of the tax roll. No later than August 9, 2024 WMF
WMF supplies the Auditor-Controller with additional information regarding any rejected parcels, which may have been assigned new assessor parcel numbers.

No later than
August 15, 2024 WMF
WMF provides support concerning property owner and other inquiries regarding the Districts and the current tax year. On-going WMF Page 76 of 628 RESOLUTION NO. 2024-12

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORCO,
CALIFORNIA, ORDERING THE PREPARATION OF THE ENGINEER’S
REPORT FOR LANDSCAPE MAINTENANCE DISTRICT NO. 1 (BEAZER, TRACT 28765) TO ESTABLISH ANNUAL ASSESSMENTS FOR FISCAL YEAR 2024/2025.

WHEREAS, the City Council of the City of Norco, California, (hereinafter the “City Council”), has by previous Resolution established the Landscape Maintenance District No. 1, pursuant to the provisions of the Landscaping and Light Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of the State of California, beginning with §22500 (hereafter referred to as the “Act”), that provides for the levy and collection of assessments by the City of Norco to pay for the maintenance and services of improvements and all appurtenant facilities and operations related thereto; and WHEREAS, §22566 and §22622 of the Act requires the preparation of an Engineer’s Report to determine and adjust the annual assessment rates for Landscape Maintenance District No. 1

NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL, AS FOLLOWS:

Section 1: Webb Municipal Finance, LLC is hereby ordered to prepare and appropriately file the Engineer’s Report required to determine and adjust the Landscape Maintenance District No. 1 assessments for Fiscal Year 2024/2025 in accordance with §22566 and §22622 of the Act. The Engineer’s Report shall be filed with the City Clerk for submission to the City Council.

Section 2. The improvements to be operated and maintained by Landscape Maintenance District No. 1 generally include the operation, administration, maintenance, and servicing of improvements, and appurtenant facilities and expenses associated with Landscape Maintenance District No. 1 that will be maintained by the City of Norco through annual assessments.

Section 3. The improvements to be maintained by the City of Norco for Fiscal Year 2024/2025 are substantially the same as the improvements provided and maintained in the previous Fiscal Year and the Engineer’s Report for Landscape Maintenance District No. 1 prepared in connection therewith shall describe the improvements as required by the Act.

Section 4. The Engineer’s Report for Landscape Maintenance District No. 1 shall reflect provisions and related assessments in accordance with the requirements of Articles XIIIC and XIIID of the California Constitution as enacted by the passage of Proposition 218, also referred to as “The Right to Vote on Taxes Act,” as approved by the voters of the State of California on November 5, 1996.

Section 5. The Engineer’s Report for Landscape Maintenance District No. 1 shall be titled: “City of Norco, Landscape Maintenance District No. 1, Engineer’s Report, Fiscal Year 2024/2025.”
Section 6. The City Clerk shall certify to the adoption of this Resolution.

PASSED AND ADOPTED by the City Council of the City of Norco, California, at a regular meeting held on April 17, 2024.
____________________________________
Kevin Bash, Mayor
City of Norco, California
____________________________________
Dana Roa, CMC, City Clerk
City of Norco, California

I, DANA ROA, CMG, City Clerk of the City of Norco, California, do hereby certify that the foregoing Resolution was adopted by the City Council of the City of Norco, California, at a regular meeting thereof held on April 17, 2024, by the following vote of the City Council:

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I have hereunto set my hand affixed the official seal of the City of Norco, California, held on April 17, 2024.
____________________________________
Dana Roa, CMC, City Clerk
City of Norco, California

RESOLUTION NO. 2024-13

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORCO,
CALIFORNIA, ORDERING THE PREPARATION OF THE ENGINEER’S
REPORT FOR LANDSCAPE MAINTENANCE DISTRICT NO. 2
(WESTERN PACIFIC, TRACT 25779) TO ESTABLISH ANNUAL
ASSESSMENTS FOR FISCAL YEAR 2024/2025.

WHEREAS, the City Council of the City of Norco, California, (hereinafter the “City Council”), has by previous Resolution established the Landscape Maintenance District No. 2, pursuant to the provisions of the Landscaping and Light Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of the State of California, beginning with §22500 (hereafter referred to as the “Act”), that provides for the levy and collection of assessments by the City of Norco to pay for the maintenance and services of improvements and all appurtenant facilities and operations related thereto; and WHEREAS, §22566 and §22622 of the Act requires the preparation of an Engineer’s Report to determine and adjust the annual assessment rates for Landscape Maintenance District No. 2

NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL, AS FOLLOWS:

Section 1: Webb Municipal Finance, LLC is hereby ordered to prepare and appropriately file the Engineer’s Report required to determine and adjust the Landscape Maintenance District No. 2 assessments for Fiscal Year 2024/2025 in accordance with §22566 and §22622 of the Act. The Engineer’s Report shall be filed with the City Clerk for submission to the City Council.

Section 2. The improvements to be operated and maintained by Landscape Maintenance District No. 2 generally include the operation, administration, maintenance, and servicing of improvements, and appurtenant facilities and expenses associated with Landscape Maintenance District No. 2 that will be maintained by the City of Norco through annual assessments.

Section 3. The improvements to be maintained by the City of Norco for Fiscal Year 2024/2025 are substantially the same as the improvements provided in the previous Fiscal Year and the Engineer’s Report for Landscape Maintenance District No. 2 prepared in connection therewith shall describe the improvements as required by the Act.” For 2024/2025 the level of maintenance for these improvements will be reduced due to insufficient funding collected from the annual assessments.

Section 4. The Engineer’s Report for Landscape Maintenance District No. 2 shall reflect provisions and related assessments in accordance with the requirements of Articles XIIIC and XIIID of the California Constitution as enacted by the passage of

Proposition 218, also referred to as “The Right to Vote on Taxes Act,” as approved by the voters of the State of California on November 5, 1996.

Section 5. The Engineer’s Report for Landscape Maintenance District No. 2 shall be titled: “City of Norco, Landscape Maintenance District No. 2, Engineer’s Report, Fiscal Year 2024/2025.”
Section 6. The City Clerk shall certify to the adoption of this Resolution.

PASSED AND ADOPTED by the City Council of the City of Norco, California, at a regular meeting held on April 17, 2024.
____________________________________
Kevin Bash, Mayor
City of Norco, California
____________________________________
Dana Roa, CMC, City Clerk
City of Norco, California

I, DANA ROA, CMG, City Clerk of the City of Norco, California, do hereby certify that the foregoing Resolution was adopted by the City Council of the City of Norco, California, at a regular meeting thereof held on April 17, 2024, by the following vote of the City Council:

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I have hereunto set my hand affixed the official seal of the City of Norco, California, held on April 17, 2024.
____________________________________
Dana Roa, CMC, City Clerk
City of Norco, California

RESOLUTION NO. 2024-14

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORCO,
CALIFORNIA, ORDERING THE PREPARATION OF THE ENGINEER’S
REPORT FOR LANDSCAPE MAINTENANCE DISTRICT NO. 3 (CENTEX, TRACT 28626) TO ESTABLISH ANNUAL ASSESSMENTS FOR FISCAL YEAR 2024/2025.

WHEREAS, the City Council of the City of Norco, California, (hereinafter the “City Council”), has by previous Resolution established the Landscape Maintenance District No. 3, pursuant to the provisions of the Landscaping and Light Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of the State of California, beginning with §22500 (hereafter referred to as the “Act”), that provides for the levy and collection of assessments by the City of Norco to pay for the maintenance and services of improvements and all appurtenant facilities and operations related thereto; and WHEREAS, §22566 and §22622 of the Act requires the preparation of an Engineer’s Report to determine and adjust the annual assessment rates for Landscape Maintenance District No. 3

NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL, AS FOLLOWS:

Section 1: Webb Municipal Finance, LLC is hereby ordered to prepare and appropriately file the Engineer’s Report required to determine and adjust the Landscape Maintenance District No. 3 assessments for Fiscal Year 2024/2025 in accordance with §22566 and §22622 of the Act. The Engineer’s Report shall be filed with the City Clerk for submission to the City Council.

Section 2. The improvements to be operated and maintained by Landscape Maintenance District No. 3 generally include the operation, administration, maintenance, and servicing of improvements, and appurtenant facilities and expenses associated with Landscape Maintenance District No. 3 that will be maintained by the City of Norco through annual assessments.

Section 3. The improvements to be maintained by the City of Norco for Fiscal Year 2024/2025 are substantially the same as the improvements provided in the previous Fiscal Year and the Engineer’s Report for Landscape Maintenance District No. 3 prepared in connection therewith shall describe the improvements as required by the Act.” For 2024/2025 the level of maintenance for these improvements will be reduced due to insufficient funding collected from the annual assessments.

Section 4. The Engineer’s Report for Landscape Maintenance District No. 3 shall reflect provisions and related assessments in accordance with the requirements of Articles XIIIC and XIIID of the California Constitution as enacted by the passage of

Proposition 218, also referred to as “The Right to Vote on Taxes Act,” as approved by the voters of the State of California on November 5, 1996.

Section 5. The Engineer’s Report for Landscape Maintenance District No. 3 shall be titled: “City of Norco, Landscape Maintenance District No. 3, Engineer’s Report, Fiscal Year 2024/2025.”
Section 6. The City Clerk shall certify to the adoption of this Resolution.

PASSED AND ADOPTED by the City Council of the City of Norco, California, at a regular meeting held on April 17, 2024.
____________________________________
Kevin Bash, Mayor
City of Norco, California
____________________________________
Dana Roa, CMC, City Clerk
City of Norco, California

I, DANA ROA, CMG, City Clerk of the City of Norco, California, do hereby certify that the foregoing Resolution was adopted by the City Council of the City of Norco, California, at a regular meeting thereof held on April 17, 2024, by the following vote of the City Council:

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I have hereunto set my hand affixed the official seal of the City of Norco, California, held on April 17, 2024.
____________________________________
Dana Roa, CMC, City Clerk
City of Norco, California

RESOLUTION NO. 2024-15

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORCO,
CALIFORNIA, ORDERING THE PREPARATION OF THE ENGINEER’S
REPORT FOR LANDSCAPE MAINTENANCE DISTRICT NO. 4 (NORCO
RIDGE RANCH, TRACTS 29588 AND 29589) TO ESTABLISH ANNUAL ASSESSMENTS FOR FISCAL YEAR 2024/2025.

WHEREAS, the City Council of the City of Norco, California, (hereinafter the “City Council”), has by previous Resolution established the Landscape Maintenance District No. 4, pursuant to the provisions of the Landscaping and Light Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of the State of California, beginning with §22500 (hereafter referred to as the “Act”), that provides for the levy and collection of assessments by the City of Norco to pay for the maintenance and services of improvements and all appurtenant facilities and operations related thereto; and WHEREAS, §22566 and §22622 of the Act requires the preparation of an Engineer’s Report to determine and adjust the annual assessment rates for Landscape Maintenance District No. 4

NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL, AS FOLLOWS:

Section 1: Webb Municipal Finance, LLC is hereby ordered to prepare and appropriately file the Engineer’s Report required to determine and adjust the Landscape Maintenance District No. 4 assessments for Fiscal Year 2024/2025 in accordance with §22566 and §22622 of the Act. The Engineer’s Report shall be filed with the City Clerk for submission to the City Council.

Section 2. The improvements to be operated and maintained by Landscape Maintenance District No. 4 generally include the operation, administration, maintenance, and servicing of improvements, and appurtenant facilities and expenses associated with Landscape Maintenance District No. 4 that will be maintained by the City of Norco through annual assessments.

Section 3. The improvements to be maintained by the City of Norco for Fiscal Year 2024/2025 are substantially the same as the improvements provided and maintained in the previous Fiscal Year and the Engineer’s Report for Landscape Maintenance District No. 4 prepared in connection therewith shall describe the improvements as required by the Act.

Section 4. The Engineer’s Report for Landscape Maintenance District No. 4 shall reflect provisions and related assessments in accordance with the requirements of Articles XIIIC and XIIID of the California Constitution as enacted by the passage of Proposition 218, also referred to as “The Right to Vote on Taxes Act,” as approved by the voters of the State of California on November 5, 1996.

Section 5. The Engineer’s Report for Landscape Maintenance District No. 4 shall be titled: “City of Norco, Landscape Maintenance District No. 4, Engineer’s Report, Fiscal Year 2024/2025.”
Section 6. The City Clerk shall certify to the adoption of this Resolution.

PASSED AND ADOPTED by the City Council of the City of Norco, California, at a regular meeting held on April 17, 2024.
____________________________________
Kevin Bash, Mayor
City of Norco, California
____________________________________
Dana Roa, CMC, City Clerk
City of Norco, California

I, DANA ROA, CMG, City Clerk of the City of Norco, California, do hereby certify that the foregoing Resolution was adopted by the City Council of the City of Norco, California, at a regular meeting thereof held on April 17, 2024, by the following vote of the City Council:

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I have hereunto set my hand affixed the official seal of the City of Norco, California, held on April 17, 2024.
____________________________________
Dana Roa, CMC, City Clerk
City of Norco, California

RESOLUTION NO. 2024-16

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORCO,
CALIFORNIA, ORDERING THE PREPARATION OF THE ENGINEER’S
REPORT FOR LANDSCAPE MAINTENANCE DISTRICT NO. 5 (HAWKS
CREST, TRACT 30230) TO ESTABLISH ANNUAL ASSESSMENTS FOR FISCAL YEAR 2024/2025.

WHEREAS, the City Council of the City of Norco, California, (hereinafter the “City Council”), has by previous Resolution established the Landscape Maintenance District No. 5, pursuant to the provisions of the Landscaping and Light Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of the State of California, beginning with §22500 (hereafter referred to as the “Act”), that provides for the levy and collection of assessments by the City of Norco to pay for the maintenance and services of improvements and all appurtenant facilities and operations related thereto; and WHEREAS, §22566 and §22622 of the Act requires the preparation of an Engineer’s Report to determine and adjust the annual assessment rates for Landscape Maintenance District No. 5

NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL, AS FOLLOWS:

Section 1: Webb Municipal Finance, LLC is hereby ordered to prepare and appropriately file the Engineer’s Report required to determine and adjust the Landscape Maintenance District No. 5 assessments for Fiscal Year 2024/2025 in accordance with §22566 and §22622 of the Act. The Engineer’s Report shall be filed with the City Clerk for submission to the City Council.

Section 2. The improvements to be operated and maintained by Landscape Maintenance District No. 5 generally include the operation, administration, maintenance, and servicing of improvements, and appurtenant facilities and expenses associated with Landscape Maintenance District No. 5 that will be maintained by the City of Norco through annual assessments.

Section 3. The improvements to be maintained by the City of Norco for Fiscal Year 2024/2025 are substantially the same as the improvements provided and maintained in the previous Fiscal Year and the Engineer’s Report for Landscape Maintenance District No. 5 prepared in connection therewith shall describe the improvements as required by the Act.

Section 4. The Engineer’s Report for Landscape Maintenance District No. 5 shall reflect provisions and related assessments in accordance with the requirements of Articles XIIIC and XIIID of the California Constitution as enacted by the passage of Proposition 218, also referred to as “The Right to Vote on Taxes Act,” as approved by the voters of the State of California on November 5, 1996.

Section 5. The Engineer’s Report for Landscape Maintenance District No. 5 shall be titled: “City of Norco, Landscape Maintenance District No. 5, Engineer’s Report, Fiscal Year 2024/2025.”
Section 6. The City Clerk shall certify to the adoption of this Resolution.

PASSED AND ADOPTED by the City Council of the City of Norco, California, at a regular meeting held on April 17, 2024.
____________________________________
Kevin Bash, Mayor
City of Norco, California
____________________________________
Dana Roa, CMC, City Clerk
City of Norco, California

I, DANA ROA, CMG, City Clerk of the City of Norco, California, do hereby certify that the foregoing Resolution was adopted by the City Council of the City of Norco, California, at a regular meeting thereof held on April 17, 2024, by the following vote of the City Council:

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I have hereunto set my hand affixed the official seal of the City of Norco, California, held on April 17, 2024.
____________________________________
Dana Roa, CMC, City Clerk
City of Norco, California

City Council

STAFF REPORT
Date: April 17, 2024 Agenda Item:

3.F.

To: Honorable Mayor and City Council Members
From: Lisette Free, Finance Director
Prepared By: Lisette Free, Finance Director
Department: Finance
SUBJECT:

Annual Adoption of the City Investment Policy
RECOMMENDATION:

Approve and Adopt Resolution 2024-18, Investment Policy.

SUMMARY:

This report provides for an annual review and adoption of the policy governing investment of surplus funds for the City as required by the City of Norco Investment Policy.

BACKGROUND:

Section 53646(a)(2) of the Government Code states that the Treasurer or Chief Fiscal Officer of the local agency may annually render to the legislative body of that local agency a Statement of Investment Policy. Attached is the City’s Investment Policy.

While State law no longer requires annual review and approval of the Investment Policy or quarterly investment report to the legislative body, staff is recommending that the current process of annual review and quarterly reporting of the investment portfolio continue to occur.

There are no recommended changes to the Investment Policy as it already aligns with the California Debt and Investment Advisory Commission Local Investment Guidelines as of January 1, 2024 (see guidelines).

Staff recommends approval and re-adoption of this Investment Policy.

FISCAL IMPACT:

Not applicable for this item.

RELATIONSHIP TO STRATEGIC PLAN:

The City Investment Policy is consistent with Strategic Direction #3 - Assure financial stability by expanding development efforts, diversifying revenue sources and continuing prudent financial management.

REVIEWED AND APPROVED BY:

Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney ATTACHMENT(S):

Investment Policy - 04.17.23
CDIAC - Local Investment Guidelines Excerpt 01.01.24

3.F. Resolution 2024-18 Investment Policy

CITY OF NORCO

INVESTMENT POLICY
PURPOSE:

The purpose of this policy is to provide guidelines to the City Treasurer for the investment of surplus funds not required for immediate necessities of the City of Norco. All investment of such surplus funds is governed by state law and by this policy.

INTRODUCTION:

The City Treasurer is responsible for administering the City of Norco investments. State law and this policy shall determine the type of investments in which the City Treasurer may participate with idle City funds. The City Treasurer shall issue and administer detailed investment instructions which may change periodically and which will supplement, but conform to the provisions of this Investment Policy. The investment of bond or Certificates of Participation (COP) proceeds will be further restricted by the provisions of relevant bond or COP documents.

POLICY:

It is the policy of the City of Norco, and the Successor Agency to the former Norco Redevelopment Agency, (together, the “CITY”) to meet the short- and long-term cash flow demands of the City in a manner which will provide for the safety of principal and sufficient liquidity, while providing a reasonable return on the City’s investment. The purpose of the Statement of Investment Policy (“Investment Policy”) is to outline a process for the investment of City funds in a prudent manner in order to meet City objectives. This Investment Policy will also govern all funds held in trust by the City.

This Investment Policy applies to all investment activities and financial assets of the City, hereinafter, the “funds.” Bond and Certificates of Participation (COP) proceeds shall be invested in accordance with the requirements and restrictions outlined in the bond and COP documents and are not considered part of idle funds nor subject to this Investment Policy. However, bond and COP proceeds will be included in the monthly report to the City Council per California Government Code Section 53646(b).

PROCEDURE:

I. DELEGATION OF AUTHORITY
The City Treasurer is authorized to invest the City’s funds in accordance with City of Norco Resolution 79-25 and California Government Code Sections 53600, 16429.1 and 53684 et seq.

The delegation of authority is for a period of one-year. The Treasurer shall thereafter assume full responsibility for the investment program until the delegation of authority is revoked. Subject to review, the City Council may renew the delegation of authority each year. The Treasurer may delegate the day-to-day investment activities to his/her designee(s) but not the responsibility for the overall investment program.

If authorized by the City Council, the Treasurer may also utilize the services of an external investment advisor to assist with the investment program. The investment advisor shall never take possession of the City’s funds or assets. No person may engage in investment activities except as provided under the terms of this Policy and the procedures established by the Treasurer.

INVESTMENT POLICY

II. PRUDENCE
Investments shall be made in the context of the “Prudent Investor Standard” which states:
“When investing, reinvesting, purchasing, acquiring, exchanging, selling, and managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the City within the limitations of this section, and considering individual investments as authorized by law.”
All investments purchased shall have daily liquidity or final stated maturity date, upon which the full principal value of the security will be received. Although the investment will mature at full principal value, it is recognized the market value will vary throughout the life of the security. In a diversified portfolio it must be further recognized that occasional measured losses are inevitable in a diversified portfolio due to economic, bond market, or individual security credit analysis. These occasional losses must be evaluated and considered within the context of the overall investment return.

The “Prudent Investor” standard shall be applied in the context of managing the funds. The Treasurer, acting within the intent and scope of the Investment Policy and other written procedures and exercising due diligence, shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely manner and appropriate action is taken to control adverse developments.

III. INVESTMENT PORTFOLIO OBJECTIVES
The objective of the investment portfolio is to meet the short and long-term cash flow demands of the City.

To achieve this objective, and consistent with Government Code Section 53600.5, the portfolio will be structured to provide safety of principal and liquidity, while providing a return on investments.

A. Safety of Principal: Investments of the City shall be undertaken in a manner that seeks to ensure that capital losses are minimized, whether from institution default, broker-dealer default, or erosion of the market value of securities. The Treasurer shall seek to preserve principal by mitigating two types of risk: Credit Risk and Market Risk.

1. Credit Risk – Credit risk, defined as the risk of loss due to failure of an issuer of a security, shall be mitigated by purchasing U.S. Treasury Securities, or high-grade securities. All investments beyond Treasury securities will be diversified so that the failure of any one issuer would not unduly harm the City’s cash flow. Credit risk shall also be mitigated by pre-qualifying financial institutions, broker/dealers, intermediaries and advisors with which the City Conduct its business.

2. Market or Interest Rate Risk – Interest rate risk is the risk the market value of securities in the portfolio will decline due to changes in general interest rates.

Interest rate risk may be mitigated by structuring the funds so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity, and by investing operating funds primarily in shorter-term securities. The cash flow is updated on a daily basis and

INVESTMENT POLICY

will be considered prior to the investment of securities, which will reduce the necessity to sell investments for liquidity purposes.

Long-term securities shall not be purchased for the sole purpose of short-term speculation. Securities shall not be sold prior to maturity with the following exceptions: 1) a declining credit security should be sold early to minimize loss of principal; 2) a security swap would improve the quality, yield, or target duration in the portfolio; or 3) liquidity needs of the portfolio require that the security be sold.

B. Liquidity: The funds shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet anticipated demands (static liquidity). Furthermore, since all possible cash demands cannot be anticipated, the funds will maintain a liquidity buffer and invest primarily in securities with active secondary or resale markets (dynamic liquidity).

C. Return on Investments (Yield): The funds shall be designed to attain a return on investment through budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. Return on investment is of least importance compared to the safety and liquidity objectives described above. The core of investments is limited to relatively low risk securities in anticipation of earning a fair return relative to the risk assumed.

IV. ETHICS AND CONFLICTS OF INTEREST
The Treasurer shall refrain from personal business activity that could conflict with proper execution of the investment program or could impair his/her ability to make impartial investment decisions. The Treasurer shall disclose any material interests in financial institutions with which he/she conduct business. She/he shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio and shall refrain from undertaking personal investment transactions with the same individual or financial institution with whom business is conducted on behalf of the City.

The Treasurer is required to file an annual State of California Form 700 "Statement of Economic Interest Disclosure,” as required by the Fair Political Practices Commission (“FPPC”). During the course of the year, if there is an event subject to disclosure that could impair the ability of the Treasurer to make impartial decisions, the City Manager will be notified in writing within 10 days of the event.

V. SAFEKEEPING OF SECURITIES
To protect against fraud, embezzlement, or losses caused by collapse of individual securities dealers, all securities owned by the City shall be held in safekeeping by the City’s custodial bank or a third-party bank trust department, acting as agent for the City under the terms of a custody agreement. This provision will not be applicable for certain investments held as a result of credit agreements entered into by the City. Such custodial bank must be a federal or state association (as defined by Section 5102 of the Financial Code), a trust company or a state or national bank located within this state or with the Federal Reserve Bank of San Francisco or any branch thereof within this state or with any Federal Reserve Bank or with any state or national bank located in any city designated as a reserve city by the Board of Governors of the Federal Reserve System.

All securities will be received and delivered using standard delivery versus payment (“DVP”) procedures pursuant to Government Code Section 53601 which ensures that securities are deposited with the third-party

INVESTMENT POLICY

custodian prior to the release of funds. Securities will be held by a third-party custodian as evidenced by safekeeping receipts. Investments in the State Pool or money market mutual funds are undeliverable and are not subject to delivery or third-party safekeeping. The Treasurer shall not be responsible for securities delivered to and receipted for by a financial institution until they are withdrawn from the financial institution by the Treasurer.

VI. FINANCIAL REPORTING
The Treasurer shall render a report (the “Report”) to the City Council and the City Manager containing detailed information on all securities, investments, and monies of the City. The Report will be submitted on a quarterly basis and be provided to the City Manager and City Council within 45 days following the end of the quarter.

The Report will contain the following information on the funds that are subject to this Investment Policy: 1) the type of investment, name of the issuer, date of maturity, par and cost of each investment, 2) the market value and source of the valuation, 3) a list of transactions for the period, 4) a description of the compliance with the statement of investment policy, 5) a statement denoting the City’s ability to meet its expenditure requirements for the next six months, and 6) if any City monies are invested in the County Pool, the investment report provided by the County Treasurer pursuant to Government Code Section 53684.

VII. INTERNAL CONTROLS
The Treasurer shall maintain a system of internal investment controls and a segregation of responsibilities of investment functions in order to assure an adequate system of internal control over the investment function.

Internal control procedures shall address wire transfer controls, separation of duties, delivery of securities to a third party for custodial safekeeping, and written procedures for placing investment transactions.

VIII. EXTERNAL CONTROLS
The independent City auditor will review and verify the City’s investment activity, holdings and compliance with this Investment Policy as part of the City’s annual independent audit and submit a report to the City Council relating thereto as part of their annual report on internal controls.

IX. QUALIFIED DEALERS AND INSTITUTIONS
The City shall transact business only with banks, savings and loans, and registered investment securities dealers. The purchase of any investment, other than those purchased directly from the issuer, shall be purchased either from an institution licensed by the State as a broker-dealer, as defined in Section 25004 of the Corporation Code, who is a member of the National Association of Securities Dealers, or a member of a federally-regulated securities exchange, a national or state-chartered bank, a federal or state association (as defined by Section 5102 of the Financial Code), or a securities dealer designated as a Primary Government Dealer by the New York Federal Reserve Bank. Regional dealers may also qualify under the Securities and Exchange Commission Rule 15-3-1 (uniform net capital rule).

The Treasurer shall investigate all institutions that wish to do business with the City, in order to determine if they are adequately capitalized, make markets in securities appropriate to the City’s needs, and agree to abide by the conditions set forth in this Investment Policy. All financial institutions and broker/dealers who desire to become qualified bidders for investment transactions must provide a current audited financial statement. Public deposits shall be made in qualified public depositories as established by California Government Code. The purchase of an authorized investment subject to the limitations of this Policy can be purchased directly from issuers in compliance with California Government Code 53603 and 53635.5.

INVESTMENT POLICY

If the City has contracted with an investment advisor to provide investment services, the investment advisor may use their own list of approved issuers, brokers/dealers and financial institutions with which to conduct transactions on the City’s behalf.

X. COLLATERAL REQUIREMENTS
California Government Code Sections 53652 through 53667 require depositories to post certain types and levels of collateral for public funds above the Federal Deposit Insurance Corporation (“FDIC”) insurance amounts. The collateral requirements apply to bank deposits, both active (checking and savings accounts) and inactive (non-negotiable time certificates of deposit).

XI. AUTHORIZED INVESTMENTS
As provided in Sections 16429.1, 53601, 53649 and 53684 of the Government Code, the State of California limits the investment vehicles available to local agencies as summarized in the following paragraphs. Section 53601, as now amended, provides that unless Section 53601 specifies a limitation on an investment’s maturity, no investments with maturities exceeding five years shall be made unless the City Council has previously granted the City to do so at least three months prior to the investment. Where this section specifies a percentage limitation for a particular security type, that percentage is applicable only on the date of purchase. Credit criteria listed in this section refers to the credit rating at the time the security was purchased.

If an investment’s credit rating falls below the minimum rating required at the time of purchase, the Treasurer will perform a timely review and decide whether to sell or hold the investment. The investments set forth in this section are authorized investments pursuant to Section 53601 of the Government Code and are authorized investments for the City subject, however, to the prohibitions set forth in Section XII of this Investment Policy.

1. City Issued Debt: Bonds issued by the City, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the City or by a department, board, agency, or authority of the City.

2. United States Treasury Securities: As authorized in Government Code Section 53601(b), 100% of the City’s portfolio may be invested in U.S. Treasury Notes, bonds, bills, or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest.

3. State Municipal Debt: As authorized in Government Code Sections 53601(c) and 53601(d), 100% of the City’s portfolio may be invested in registered state warrants or treasury notes or bonds of this state or any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of a state. Obligations eligible for investment under this subdivision shall be rated in a rating category of “A” or its equivalent or higher by a Nationally Recognized Statistical Organization (NRSRO).

4. California Local Agency Obligations: As authorized in Government Code Section 53601(e), 100% of the City’s portfolio may be invested in bonds, notes, warrants, or other evidences of indebtedness of a local agency within this state, including bonds payable solely out of the revenues from a revenue producing property owned, controlled, or operated by the local agency, or by a department, board, agency or authority of the local agency. Obligations

INVESTMENT POLICY

eligible for investment under this subdivision shall be rated in a rating category of “A” or equivalent or higher by a NRSRO.

5. United States Government Agency Securities: As authorized in Government Code Section 53601(f), 100% of the City’s portfolio may be invested in federal agency or United States government – sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principle and interest by federal agencies or United States government-sponsored enterprises.

6. Bankers Acceptances: As authorized in Government Code Section 53601(g), 40% of the City’s portfolio may be invested in bankers’ acceptances. Additionally, the maturity period may not exceed 180 days. Bankers’ acceptances must be rated “A-1” or its equivalent or higher by Nationally Recognized Statistical Organization (NRSRO) to be eligible for purchase.

7. Commercial Paper: As authorized in Government Code Section 53601(h)(2)(c), 25% of the City’s portfolio may be invested in commercial paper of “prime quality of the highest ranking or of the highest letter and number rating as provided for by Nationally Recognized Statistical Organization (NRSRO). Purchases of eligible commercial paper may not exceed 270 days maturity. The entity that issues the commercial paper must meet all of the following conditions in either (a) or (b):
(a) The entity must meet the following criteria:
(1) is organized and operating in the United States as a general corporation (2) has total assets in excess of five hundred million dollars ($500,000,000), and
(3) has debt other than commercial paper, if any, that is rated in a rating category of “A” or its equivalent or higher by a NRSRO. (b) The entity meets the following criteria:
(1) is organized within the United States as a special purpose corporation, trust, or limited liability company.
(2) has program-wide credit enhancements including, but not limited to, over collateralization, letters of credit, or surety bond, and (3) has commercial paper that is rate “A-1” or its equivalent or higher by NRSRO.

8. Negotiable Certificates of Deposit: As authorized in Government Code Section 53601(i), the City may invest 30% of its portfolio in negotiable certificates of deposit issued by a nationally or state-chartered bank, a savings association or a federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union, or by a federally or state licensed branch of a foreign bank. Negotiable CD's must be rated in a rating category of “A” or its equivalent or higher by a NRSRO.

9. Non-Negotiable Certificates of Deposit (CD’s): As authorized in Government Code Section 53649, non-negotiable certificates of deposit are fixed-term investments which are required to be collateralized from 105% to 150% depending on the specific security pledged as collateral in accordance with Government Code Section 53652. No more than 25% of the

INVESTMENT POLICY

City’s portfolio may be invested in non-negotiable CD’s. The maximum maturity for nonnegotiable CD’s is five years. Unless collateralized by eligible securities as provided in Sections 53651 and 53652 of the Government Code, the maximum amount of nonnegotiable certificates of deposit (including expected interest) to be placed in any single bank or savings and loan shall be the current limit of FDIC insurance. The current maximum limit for the FDIC standard insurance is $250,000 per depositor, per insured bank.

10. Medium Term Corporate Notes: As authorized in Government Code Section 53601(k), 30% of the City’s portfolio may be invested in corporate notes with the maximum maturity of five years. The notes must be issued by corporations organized and operating in the United States or by depository institutions licensed by the United States or any state and operating in the United States. Corporate notes must be rated in a rating category of “A” or its equivalent or higher by a NRSRO to be eligible for purchase.

11. Money Market Mutual Funds: As authorized by Government Code Sections 53601(l) and 53601.6(b), 20% of the City’s portfolio may be invested in shares of beneficial interest by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Act of 1940 (15 U.S.C Sec. 80a-1, et seq.) However, no more than 10 percent of the City’s funds may be invested in shares of beneficial interest of any one mutual fund. To be eligible for investment pursuant to this subdivision, these companies will either: (i) attain the highest-ranking letter or numerical rating provided by at least two NRSRO’s or (ii) have retained an investment advisor registered or exempt from registration with the Securities and Exchange Commission with not less than five years of experience managing money market mutual funds and with assets under management in excess of $500,000,000.

12. Receivable–Backed Securities: As authorized by Government Code Section 53601(o), any mortgage pass-through security, collateralized mortgage obligation, mortgage-backed or other pay-through bond, equipment lease-backed certificate, consumer receivable passthrough certificate, or consumer receivable-backed bond of a maximum remaining maturity of five years maturity or less. Securities eligible for investment under this subdivision shall be issued by an insurer having an “A” or higher rating for the issuer’s debt as provided by a nationally recognized rating service and rated in a rating category of “AA” or its equivalent or better by a nationally recognized rating service NRSRO. Purchase of securities authorized by this subdivision may not exceed 20 percent of the City’s surplus money that may be invested pursuant to this section.

13. Local Government Investment Pools: As authorized in Government Code Section 53601(p), the City may invest in shares of beneficial interest issued by a local Government investment pool joint powers authority. To be eligible for purchase, the investment must meet the requirements of California Government Code Section 53601(p), and the investment must be rated at least “AAA,” or its equivalent, by a NRSRO.

14. Supranational Obligations: As authorized in Government Code Section 53601(q), 30% of the City’s portfolio may be invested in United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the

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International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Investments under this subdivision shall be rated in a rating category of “AA” or its equivalent or better by a NRSRO.

15. Local Agency Investment Fund: As authorized in Government Code Section 6429.1, the City may invest in the Local Agency Investment Fund (LAIF) established by the State Treasurer for the benefit of local agencies up to the maximum permitted by state law. 16 Riverside County Investment Fund: As authorized in Government Code Section 27133, he City may invest in the Riverside County Investment Pool established by the County Treasurer for the benefit of cities.

XII. PROHIBITED TRANSACTIONS
Investments not described herein, including but not limited to, repurchase agreements, reverse repurchase agreements, financial futures, financial option contracts, stocks, inverse floaters, range notes, interest only strips, or any security that could result in zero interest accrual if held to maturity are prohibited for investment by the City.

The following types of transactions are prohibited:

1. Reverse Repurchase Agreements, as defined by California Government Code Sections 53601(5)(c) and 53635(i) or otherwise are prohibited.

2. Instruments known as “Structured Notes” (e.g. inverse floaters, leveraged floaters, structured certificates of deposit, equity-linked securities) and “Derivatives” (e.g. options, futures, swaps, caps, floors, collars) are prohibited. For the purpose of identifying ineligible securities, the definition of prohibited Structured Notes and Derivatives includes all floatingrate, adjustable-rate or variable-rate securities in which a change in interest rates or other variables that can reasonably be foreseen to occur during their term would result in their market value not returning to par at the time of each interest rate adjustment as defined by California Government Code Section 53601.6.

3. No investment prohibited by California Government Code Sections 53601.6 or 53631.5 shall be permitted herein.

XIII. INVESTMENT RESTRICTIONS
The following types of transactions are restricted:

1. Simple “floating rate notes,” whose periodic coupon adjustment is based on a short-term (oneyear or less) rate index (such as Treasury bills, federal funds, prime rate of LIBOR) and which have a reasonable expectation of maintaining a value of par at each interest rate adjustment through final maturity, are considered an eligible investment. Eligible floating rate notes (U.S.

Government Agencies, Certificates of Deposit, Medium-Term Notes, etc.), must meet all quality,

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maturity and percent limitations assigned to their respective security category.

2. Callable securities, which otherwise meet the quality, maturity and percent limitations assigned to their respective security category, are considered to be an acceptable investment. U.S.

Treasury zero-coupon bonds, U.S. Treasury strips and Resolution Funding Corporation (REFCORP) strips are considered to be an acceptable investment.

3. The average maturity of all instruments, on a dollar-weighted basis, will not exceed 730 days.

4. The maximum maturity of any portfolio instrument will be 5 years or less. The maturity of a variable-rate security may be considered to be its next interest rate reset date, if there is a reasonable expectation that the security will maintain an approximate value of par upon each adjustment of the security’s interest rate at any time until final maturity.

5. All investments will be U.S. dollar denominated.

6. Any investment transactions, credit risk criterion, or market valuation that are not in compliance with this Investment Policy must be documented in writing by the Treasurer and approved by the City Manager.

7. Securities that are downgraded below the minimum acceptable rating levels must be reviewed for possible sale within a reasonable amount of time.

8. No more than 5% of the portfolio may be invested in the securities of any one issuer, regardless of security type; excluding U.S. Treasuries, federal agencies, supranationals, and pooled investments such as LAIF, County pool, money market funds, or local government investment pools.

It is acknowledged that investment pools in which the City invests may invest funds in any of the securities set forth in Government Coded Section 53601.

XIV. POLICY REVIEW
This Investment Policy shall be reviewed at least annually by the Treasurer, City Manager and City Council to ensure its consistency with the overall objectives of preservation of principal, liquidity, and return, and its relevance to current law, financial and economic trends, and to meet the needs of the City. The Investment Policy shall be presented to and annually reviewed and approved by the City Council in an open session.

XV. LEGISLATIVE CHANGES
Any State of California legislative actions that further restricts allowable maturities, investment type or percentage allocations will, upon effectiveness, be incorporated into the City’s Investment Policy Statement and supersede any and all previous applicable language.

CALIFORNIA DEBT AND INVESTMENT ADVISORY COMMISSION
Update for 2024
Reflects state law changes
effective as of January 1, 2024
CDIAC 23.07

LOCAL AGENCY

INVESTMENT

GUIDELINES

LOCAL AGENCY INVESTMENT GUIDELINES 3
Summary of Changes
The 2024 Local Agency Investment Guidelines incorporates the following California statutory changes: Government Code Section 53601 and 27000.7.

STATUTORY CHANGES

LOCAL FUNDS
Chapter 187, Statutes of 2023 (SB 882), Local Government Omnibus Act of 2023, amended Government Code section 53601 to clarify limitations imposed on public investment in a privately issued mortgage passthrough security, collateralized mortgage obligation, mortgage-backed or other pay-through bond, equipment lease-backed certificate, consumer receivable passthrough certificate, or consumer receivable-backed bond (“mortgage pass–through and asset-backed securities”) that are not issued or guaranteed by a public agency or issuer identified in subdivision (b) or (f). These types of securities, issued by private companies, are permissible investments under subdivision (o) so long as they meet the following limitations: 1. rated in a rating category of “AA” or its equivalent or better; 2. have a maximum remaining maturity of five years or less; and, 3. do not exceed the 20% of the local agency’s portfolio (see Figure 1).

A provision of this bill also amended 27000.7 to eliminate one of the options for a person to demonstrate eligibility to be elected or appointed to the office of county treasurer, county tax collector, and county treasurer-tax collector. The option to possess a valid certificate issued by the Treasury Management Association showing the person to be designated a Certified Cash Manager, with a minimum of 16 college semester units, or their equivalent, in accounting, auditing, or finance, was eliminated.

This bill made additional changes to various legislative code sections not related to public debt issuance or public fund investments.

FEDERAL AND REGULATORY CHANGES
No changes.

LOCAL AGENCY INVESTMENT GUIDELINES 4

OTHER CHANGES
The 2024 Local Agency Investment Guidelines includes changes to Chapter II:

Fund Management:

New guidance has been added to Chapter 2, Fund Management, II.D. What funds should a local agency use to calculate portfolio concentration compliance with state law? [Section 53601], to help an agency determine what funds are available for investment and what funds to include when calculating portfolio concentration limitations.

Chapter 2, II.M. What are the rules regarding the use of mutual funds and money market funds? [Sections 53601(l) And 53601.6(b)] now includes statements regarding the impermissibility of exchange-traded funds (ETFs) for public investment portfolios.

Glossary. The term, LIBOR, has been updated and the term, SOFR, has been added to the glossary.

All references to statutory code "sections" throughout this document shall refer to California Government Code unless otherwise stated.

RESOLUTION NO. 2024-18

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

NORCO, CALIFORNIA, ESTABLISHING THE POLICIES
AND PROCEDURES FOR THE CITY’s INVESTMENTS.

WHEREAS, the California Legislature has provided standards for governing bodies authorized to make investment decisions for local agencies, which are set forth in Government Code sections 16429.1, 53600-53609 and 53684 et seq. (the "Investment Act"); and
WHEREAS, Section 53684 of the Government Code permits the governing bodies of the local agencies to authorize the deposit of excess funds in the county treasury for the purposes of investment by the county treasurer pursuant to Section 53601 and 53635; and WHEREAS, the City Treasurer is responsible for administering the City of Norco investments to meet the short- and long-term cash flow demands of the City in a manner which will provide for the safety of principal and sufficient liquidity, while providing a reasonable return on the City’s investment; and
WHEREAS, the Investment Policy is to outline a process for the investment of City funds in a prudent manner in order to meet City objectives. It will further protect City assets by identifying investment objectives, addressing the issues of investment risks, and providing the framework for the establishment of controls, limitations and responsibilities of City employees in the performance of their fiduciary responsibilities.

NOW, THEREFORE, the City Council of the City of Norco does hereby resolve as follows:

SECTION 1: The attached Investment Policy, as shown on Attachment A, is hereby approved.

Resolution No. 2024-18, Adopting the Investment Policy

PASSED AND ADOPTED by the City Council of the City of Norco at a regular meeting held on April 17, 2024.
__________________________
Kevin Bash, Mayor
City of Norco, California
ATTEST:
_________________________
Dana Roa, CMC, City Clerk
City of Norco, California

Resolution No. 2024-18, Adopting the Investment Policy

I, Dana Roa, City Clerk of the City of Norco, do hereby certify that the foregoing Resolution was adopted by the City Council of the City of Norco, California at a regular meeting hereof held on April 17, 2024, by the following vote of the City Council:

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Norco, California, on April 17, 2024.
___________________________
Dana Roa, CMC, City Clerk
City of Norco, California

City Council

STAFF REPORT
Date: April 17, 2024 Agenda Item:

3.G.

To: Honorable Mayor and City Council Members
From: Lisette Free, Finance Director
Prepared By: Lisette Free, Finance Director
Department: Finance
SUBJECT:

Quarterly Investment Report for Quarter Ended March 31, 2024 RECOMMENDATION:

Receive and file the Quarterly Investment Report for the Quarter Ended March 31, 2024.

SUMMARY:

This report has been prepared to meet the requirements of the City’s Investment Policy and applicable sections of the State of California Government Code.

BACKGROUND:

The City’s Investment Policy requires the Treasurer to render a quarterly report to the legislative body. The report is to be prepared in accordance with Government Code Section 53646(b)(1) and should contain detailed information on all securities, investments, and monies of the local agency; a statement of compliance of the portfolio with the Statement of Investment Policy; and a statement of the City’s ability to meet its cash flow requirements for the next six months. This report, which is for the quarter ended March 31, 2024, meets the requirements of the Investment Policy and Government Code. It covers funds of the City and the Successor Agency to the former Norco Redevelopment Agency.

The attached schedules (attachments 1 through 4) have been prepared to meet the detailed requirements of the Government Code and the City’s Investment Policy as approved by the Council on April 05, 2023. It is to be noted that the Investment Policy excludes certain investments (bond proceeds) from these requirements. This means that bond proceeds are invested in accordance with the provisions of the bond indentures rather than the provisions of the Investment Policy. Consequently, in determining whether the operating portfolio holdings are in compliance with the

Government Code and the approved Investment Policy, investments of bond proceeds have been excluded.

Attachment 1 provides a summary schedule of the City’s operating portfolio holdings by type as of March 31, 2024. This summary also provides information on whether or not each investment category complies with the limitations imposed by State law and the City’s Investment Policy. Investments that are subject to the Statement of Investment Policy are operating or idle funds invested by the Treasurer within the provisions of the approved Investment Policy. During the quarter ended March 31, 2024, the operating portfolio increased by a net amount of $1.8 million from $83.6 million to $85.4 million.

Revenues exceeded disbursements for expenditures for this quarter due to property tax, vehicle license fees, sales tax and Measure R received.

A summary of investments not subject to the provisions of the Investment Policy (bond proceeds and debt service reserve funds) is also shown on Attachment 1. These funds are invested in accordance with applicable bond indenture provisions. During the quarter ended March 31, 2024, bond proceeds and debt service reserve fund portfolio increased by a net amount of $0.8 million from $6.7 million to $7.5 million due to the transfer from operating funds for the April 1, 2024 debt service payments.

Attachment 2 provides a graphical breakdown of the operating portfolio holdings by investment type as of March 31, 2024. This chart is for investments that are subject to the Investment Policy. The operating portfolio consisted of 31% investment in the State of California Local Agency Investment Fund (LAIF), 34% in the California Asset Management Program (CAMP), 26% in US Agency Securities and the remaining 9% in cash and cash equivalents.

Attachment 3 provides a detailed listing of the City’s portfolio holdings as required by the Government Code. In this listing, “N/A” is used to denote that the information is either not available or not applicable. Agency Securities issued by United States Government Sponsored Entities (GSEs) are rated “AA+” by Moody’s rating service and “AAA” by Fitch rating service.

Attachment 4 indicates cash balances by Fund as additional information to complement the schedule of investment holdings. For the Operating Funds, the cash balance provides an indication of the financial health of each Fund.

CASH FLOWS: Based on cash balances as of March 31, 2024 and anticipated cash receipts for the next six months, staff estimates that there will be sufficient cash to cover disbursements for the City and Successor Agency for the next six months ending September 30, 2024.

FISCAL IMPACT:

Not applicable for this item.

RELATIONSHIP TO STRATEGIC PLAN:

The Quarterly Investment Report is consistent with Strategic Direction #3 “Economic Development & Financial Stability - Assure financial stability by expanding development efforts, diversifying revenue sources and continuing prudent financial management." REVIEWED AND APPROVED BY:

Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney ATTACHMENT(S):

Attachment 1
Attachment 2
Attachment 3
Attachment 4
Attachment 5

Attachment 1
City of Norco, California
Portfolio Summary
As of March 31, 2024
City Investments Subject to Investment Policy Market Value Percentage Policy Maximum Compliance Cash $ 7,826,911 9.17% NA In Compliance
Local Agency Investment Fund 26,219,476 30.71% 100% In Compliance CAMP 29,232,360 34.24% 100% In Compliance
U.S. Government Agency Securities 22,095,861 25.88% 100% In Compliance Total $ 85,374,608 100.00%

3.852%
City Investments Not Subject to Investment Policy Market Value Percentage Community Facilities Districts $ 1,786,749 23.85%
Sewer and Water System 747,208 9.97%
Refunding Tax Allocation Bonds 4,958,346 66.18%
Total $ 7,492,303 100.00%

1.142%
Estimated Portfolio Yield
Estimated Portfolio Yield

Attachment 2

BEGINNING AND ENDING VALUES BREAKDOWN OF INVESTMENTS
Beg. Market Values Ending Market Values
Breakdown 12/31/2023 3/31/2024 Investments Subject to Investment Policy Portfolio % Rating Cash 7,104,814 7,826,911 Local Agency Investment Fund 26,219,476 30.71% Not Rated Local Agency Investment Fund 29,603,607 26,219,476 Federal Home Loan Banks 22,095,861 25.88% AAA California Asset Management Plan 25,365,180 29,232,360 CA Asset Management Plan 29,232,360 34.24% AAAm U.S. Treasury Securities 6,393,440 - Wells Fargo Checking Account 5,118,627 6.00% Not Rated U.S. Government Agency Securities 15,128,275 22,095,861 US Bank Principal Cash 2,708,284 3.17% Not Rated Total Market Value 83,595,316 85,374,608 TOTAL 85,374,608 100%

SUMMARY OF CITY OF NORCO'S PORTFOLIO

INVESTMENTS SUBJECT TO INVESTMENT POLICY
Not Rated
40%
Rated
60%
By Rating
< 1 year
86%
> 3 years
7%
By Maturity (Years)
Local Agency
Investment
Fund
31%
Federal Home
Loan Banks
26%
CA Asset
Management
Plan
34%
Cash and Cash
Equivalents
9%
By Type

Attachment 3 Page 1
City of Norco, California
Portfolio Details
As of March 31, 2024
Investments Subject to Policy
Cash & Cash Equivalents
Purchase
Date Maturity Date CUSIP # Description of Security
Investment
Policy Account Rating
Coupon
Rate
Yield to
Maturity Face Value Cost Market Value
N/A N/A N/A Checking Accounts N/A Wells Fargo N/A N/A 0.00% N/A 5,118,627 5,118,627 N/A N/A N/A Principal Cash N/A US Bank N/A N/A 0.00% N/A 2,708,284 2,708,284 Subtotal 7,826,911 7,826,911
Local Agency Investment Fund
Purchase
Date Maturity Date CUSIP # Description of Security
Investment
Policy Account Rating
Coupon
Rate
Yield to
Maturity Face Value Cost Market Value
N/A N/A N/A Local Agency Investment Fund XI.15 State of California N/A N/A N/A N/A 26,389,872 26,219,476 Subtotal 26,389,872 26,219,476
California Asset Management Plan
Purchase
Date Maturity Date CUSIP # Description of Security
Investment
Policy Account Rating
Coupon
Rate
Yield to
Maturity Face Value Cost Market Value
N/A N/A N/A California Asset Management Plan XI.13 CA Joint Powers Authority N/A N/A N/A N/A 29,232,360 29,232,360 Subtotal 29,232,360 29,232,360
US Bank Custodial Account
06/28/21 09/30/24 3130AMV74 Federal Home Loan Banks XI.5 US Bank AA+ 0.400% 0.410% 5,000,000 5,000,000 4,883,450 12/30/21 12/30/24 3130AQAR4 Federal Home Loan Banks XI.5 US Bank AA+ 1.500% 1.540% 2,500,000 2,500,000 2,435,475 12/23/21 12/23/24 3130AQAS2 Federal Home Loan Banks XI.5 US Bank AA+ 1.070% 1.102% 2,500,000 2,500,000 2,426,850 08/21/23 08/21/25 3130AWXU9 Federal Home Loan Banks XI.5 US Bank AA+ 5.500% 5.498% 3,400,000 3,400,000 3,401,326 01/08/24 01/08/27 3130AYE44 Federal Home Loan Banks XI.5 US Bank AA+ 5.125% 5.145% 3,000,000 3,000,000 2,988,360 01/26/24 01/26/28 3130AYPJ9 Federal Home Loan Banks XI.5 US Bank AA+ 4.500% 4.530% 6,000,000 6,000,000 5,960,400 22,400,000 22,095,861
Total Investments Subject to Policy 85,849,143 85,374,608

Attachment 3 Page 2
City of Norco, California
Portfolio Details
As of March 31, 2024
Investments Not Subject to Policy (Bond Proceeds)
Community Facilities Districts
Cash and Cash Equivalents
Purchase
Date Maturity Date CUSIP # Description of Security
Investment
Policy Account Rating
Coupon
Rate
Yield to
Maturity Face Value Cost Market Value
N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 65,886 65,886 N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 178 178 N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 32,764 32,764 N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 112 112 N/A N/A 31846V203 First American Government XI.11 US Bank N/A N/A 4.931% N/A 42,245 42,245 N/A N/A 31846V203 First American Government XI.11 US Bank N/A N/A 4.931% N/A 10,859 10,859 N/A N/A 31846V203 First American Government XI.11 US Bank N/A N/A 4.931% N/A 6,717 6,717 Subtotal 158,762 158,762
Local Agency Investment Fund
Purchase
Date Maturity Date CUSIP # Description of Security
Investment
Policy Account Rating
Coupon
Rate
Yield to
Maturity Face Value Cost Market Value
N/A N/A N/A Local Agency Investment Fund (CFD 2002-1) XI.15 State of California N/A N/A N/A N/A 60,304 59,915 Subtotal 60,304 59,915
U.S. and Agency Securities
Purchase
Date Maturity Date CUSIP # Description of Security
Investment
Policy Account Rating
Coupon
Rate
Yield to
Maturity Face Value Cost Market Value
08/21/19 08/24/25 3136G4Q97 F H L M C M T N XI.5 US Bank AAA 0.650% 0.690% 1,440,000 1,440,000 1,356,998 11/10/20 08/23/24 3135GA4R9 F N M A XI.5 US Bank AAA 0.420% 0.428% 215,000 215,000 211,074 1,655,000 1,655,000 1,568,073
Total Community Facilities Districts 1,874,066 1,786,749 Investments Not Subject to Policy (Bond Proceeds)
Sewer and Water System
Cash and Cash Equivalents
Purchase
Date Maturity Date CUSIP # Description of Security
Investment
Policy Account Rating
Coupon
Rate
Yield to
Maturity Face Value Cost Market Value
N/A N/A 31846V203 First American Government XI.11 US Bank N/A N/A 4.931% N/A 280 280 N/A N/A 31846V203 First American Government XI.11 US Bank N/A N/A 4.931% N/A 745,742 745,742 N/A N/A 31846V203 First American Government XI.11 US Bank N/A N/A 4.931% N/A 1,179 1,179 N/A N/A 31846V203 First American Government XI.11 US Bank N/A N/A 4.931% N/A 6 6 Subtotal 747,208 747,208
Total Sewer and Water System 747,208 747,208

Attachment 3 Page 3
City of Norco, California
Portfolio Details
As of March 31, 2024
Investments Not Subject to Policy (Bond Proceeds)
Refunding Tax Allocation Bonds
Cash & Cash Equivalents
Purchase
Date Maturity Date CUSIP # Description of Security
Investment
Policy Account Rating
Coupon
Rate
Yield to
Maturity Face Value Cost Market Value
N/A N/A 31846V401 First American Government Obligation XI.11 US Bank N/A N/A 4.782% N/A 124,826 124,826 N/A N/A 31846V401 First American Government Obligation XI.11 US Bank N/A N/A 4.782% N/A 378 378 N/A N/A 31846V401 First American Government Obligation XI.11 US Bank N/A N/A 4.782% N/A 931 931 N/A N/A 31846V401 First American Government Obligation XI.11 US Bank N/A N/A 4.782% N/A 798 798 N/A N/A 31846V401 First American Government Obligation XI.11 US Bank N/A N/A 4.782% N/A 41,931 41,931 N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 95 95 N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 23 23 N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 27 27 N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 29,095 29,095 N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 56,347 56,347 N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 12 12 N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 15 15 N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 21,341 21,341 N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 107,421 107,421 N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 78 78 N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 69 69 N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 28,994 28,994 Subtotal 412,380 412,380
Local Agency Investment Fund
Purchase
Date Maturity Date CUSIP # Description of Security
Investment
Policy Account Rating
Coupon
Rate
Yield to
Maturity Face Value Cost Market Value
N/A N/A N/A Local Agency Investment Fund (2010 TABs) XI.15 State of California N/A N/A N/A N/A 25,236 25,073 N/A N/A N/A Local Agency Investment Fund (2003 TABs) XI.15 State of California N/A N/A N/A N/A 115,093 114,350 Subtotal 140,329 139,423
U.S. and Agency Securities
Purchase
Date Maturity Date CUSIP # Description of Security
Investment
Policy Account Rating
Coupon
Rate
Yield to
Maturity Face Value Cost Market Value
11/23/20 08/23/24 3135GA4R9 F N M A XI.5 US Bank AAA 0.420% 0.428% N/A 1,940,000 1,904,576 05/26/21 05/26/26 3130AMG63 Federal Home Loan Banks XI.5 US Bank AAA 0.500% 0.536% N/A 1,040,000 970,913 05/26/21 05/26/26 3130AMG63 Federal Home Loan Banks XI.5 US Bank AAA 0.500% 0.536% N/A 1,055,000 984,916 05/26/21 05/26/26 3130AMG63 Federal Home Loan Banks XI.5 US Bank AAA 0.500% 0.536% N/A 585,000 546,138 Subtotal 4,620,000 4,406,543
Total Refunding Tax Allocation Bonds 5,172,709 4,958,346 Total Investments Not Subject to Policy 7,793,983 7,492,303

Attachment 4
City of Norco, California
Portfolio Details by Fund
As of March 31, 2024
Investments Subject to Policy Qtr ended
03/31/24
Fund Description Balance
012 Successor Agency Project Fund 138,109
016 Cal Home Grant Fund 186,737
017 Successor Agency Fund 140,834
018 Housing Fund 4,252,000
121 General Fund 27,950,261
122 Miscellaneous Grants Fund (27,614)
124 Water Fund 3,991,343
126 Sewer Fund (538,299)
127/132 Measure R Fund 11,041,078
128 Equipment Replacement Fund 4,288,151
129 Storm Drain Fund (285,062)
131 Nancy Newman Fund 73,670
133 Gas Tax Fund (18,537)
134 Benefits and Insurance Fund 507,550
135 Information Technology Fund 1,281,889
136 SB1 Road Maintenance & Rehab. Fund 60,929
137 Measure A Fund 1,032,977
139 NPDES Fund (66,020)
140 General Govt Improvement Fund 443,704
141 Park Improvement Fund 1,048,927
142 Fire Improvement Fund 660,015
143 Trail Improvement Fund 240,358
144 Water Capital Fund 4,512,340
146 Public Meeting Facilities Fund 222,277
147 Sewer Facilities Fund 11,441,905
149 Street Improvement Fund 180,164
151 Animal Control Fund 42,166
152 Facility Improvement Fund 127,058
154 Trust Deposit Fund 452,363
156 AQMD Fund 83,176
158 Waste Management Fund 52,102
159 Recyled Water Capital Fund (4,456)
162 Supplemental Law Grant Fund 8,333
166 Recyled Water Fund 3,180,730
181 CFD 97-1 382,029
182 CFD 2001-1 1,497,088
183 CFD 2002-1 124,805
179 LMD #1 (6,404)
176 LMD #2 (36,195)
177 LMD #3 (11,293)
186 LMD #4 250,744
187 LMD #5 103,919
Subtotal - General Ledger 79,005,850
Various Outstanding Checks/Deposits in Transit 6,368,758 Total Cash and Investments 85,374,608

Attachment 5
Quarterly Investment Portfolio
For the Quarter Ended March 31, 2024
As required by the Government Code, the Treasurer certifies that the investments reported in the accompanying schedules (Attachments 1 through 3) comply with the City of Norco Investment Policy and that sufficient liquidity along with anticipated revenues are available to meet the City and Successor Agency budgeted expenditure requirements for the next six months ending September 30, 2024.

April 17, 2024
Lisette Free, Finance Director Date

City Council

STAFF REPORT
Date: April 17, 2024 Agenda Item:

3.H.

To: Honorable Mayor and City Council Members
From: Chad Blais, Public Works Director
Prepared By: Chad Blais, Public Works Director
Department: Public Works
SUBJECT:

Approval of the City of Norco's Pedestrian and Bicycle Master Plan RECOMMENDATION:

Adopt the City of Norco Pedestrian and Bicycle Master Plan.

SUMMARY:

In December 2022, the City proposed the preparation of a Master Plan that could lay the foundation for future infrastructure decisions for specific pedestrian and bicycle infrastructure projects. The City hired Alta Planning + Design to provide professional consulting services to develop a Bicycle and Pedestrian Master Plan for the City of Norco. Over the past 13 months the Public Works Department and Alta have worked together to develop a draft Plan. The Streets, Trails, and Utilities Commission, General Plan Consultant, and City Council have all reviewed and provided feedback regarding what should be included in the final Plan.

BACKGROUND:

The City of Norco engaged Alta Planning + Design, Inc. (Alta) to help develop the City's first Pedestrian and Bicycle Master Plan (Plan) to establish a vision for walking and biking in Norco that is consistent with the City's rural atmosphere and equestrian lifestyle. The resulting Master Plan will recommend alignments and facilities that increase safety and minimize potential conflicts between equestrians, cyclists and pedestrians. A successful Plan for Norco is one that establishes a communitysupported vision, and a path to get there, for expanding and enhancing the City’s active transportation network while preserving the aesthetics and principles that make Norco unique-namely its low-density, rural, equestrian lifestyle.

Norco’s existing active transportation network is primarily composed of an expansive trail circulation network used by equestrians, pedestrians, and bicyclists. However, there are limited on-street bicycle facilities due to many city streets being two-lane roadways.

Alta has prepared a Plan (see attached Plan) with recommendations. The Plan includes an inventory of the City’s current bicycle and pedestrian network and provides new and updated infrastructure, program, and policy recommendations to encourage bicycling and walking. These recommendations take advantage of new, innovative solutions to guide City staff in prioritizing resources when implementing future projects and programs. The Plan will also assist the City in its efforts to secure grants and other outside funding for these pursuits.

As part of the development of the draft Plan, Alta conducted multiple in-person and online outreach efforts to gather data necessary for development of the Plan, which also included review and comments by the Streets, Trails, and Utilities Commission (STUC).

Comments and concerns from STUC have been incorporated in the draft Plan. In addition, because the Plan will also be incorporated as part of the new General Plan currently in progress, the consultant team for the update for the General Plan has also reviewed the Plan and determined the recommendations do not appear to conflict with potential traffic or circulation recommendations or changes that might be implemented as part of the General Plan update.

Lastly, on April 3, 2024, the City Council was afforded an opportunity to review and provide feedback regarding the Plan. The resulting Plan is intended to establish community consensus, identify priority areas and networks for pedestrian/bicycle improvements, recommend specific projects, identify opportunities to connect with regional and local planning projects, and establish priorities, and high-level cost estimates, and funding strategies for future implementation projects.

City Council is recommended to adopt the City of Norco Pedestrian and Bicycle Master Plan.

This action is not a project within the meaning of CEQA Guidelines Section 15378 and is therefore not subject to CEQA, since it does not have the potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. The approval of this agenda item does not commit the City to a definite course of action in regard to a project since the action authorizes adopting a Plan to improve public safety, regional mobility, regional connectivity and the advancement of other active transportation efforts. This proposed activity is therefore not subject to CEQA. Any future action connected to this approval that constitutes a project will be reviewed for compliance with CEQA. In addition, individual, specific work authorized pursuant to this Plan will be reviewed for compliance with CEQA.

FISCAL IMPACT:

The cost to develop the Pedestrian and Bicycle Master Plan is being funded partially by a grant from Riverside County Transportation Commission (RCTC). RCTC provided grant funding in the amount of $96,000 (122-800-34100) and the 40 percent match of $64,000 was provided from the General Fund (121-800-34100). Any potential improvements included in the final Plan that might be implemented in the future will be considered as part of future budget discussions.

RELATIONSHIP TO STRATEGIC PLAN:

The development of a Pedestrian and Bicycle Master Plan is consistent with Strategic Plan Direction No. 5 - Infrastructure & Asset Management: Ensure timely preservation, replacement, improvement and acquisition of infrastructure and capital assets.

REVIEWED AND APPROVED BY:

Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney ATTACHMENT(S):

Norco PBMP Final

april 2024
City of Norco
Pedestrian and Bicycle
Master Plan
final plan

2 01 EXISTING CONDITIONS

City of Norco | Pedestrian and Bicycle Master Plan
3 Existing Conditions
Summary of Historical Context and
Land Use
The City of Norco is in Riverside County and located next to the City of Riverside to the east, Eastvale and Jurupa Valley to the north, Corona to the south, and Chino Hills to the west. Chino Hills State Park and the Santa Ana Mountains are nearby to the west, and the Santa Ana River runs through the northern portion of Norco. Riverside County’s Hidden Valley Wildlife Area, which features hiking and equestrian trails, as well as access to the Santa Ana River Trail is just outside of the City to the northeast.

Trademarked as “Horsetown USA”, Norco is known for its rural atmosphere and equestrian lifestyle. Equestrian trails and amenities line neighborhood streets and the City has regular community events like Horseweek and rodeos. Most land in Norco is zoned for low density agricultural residences, which allows residents to have an animal-keeping lifestyle. Commercial areas are concentrated along Sixth Street, Hamner Avenue, and River Road (Figure 1). A large business park began construction on Mountain Avenue near First Street in Spring 2022. The project is the largest real estate development in Norco’s history. The Norco Valley Square project is also under development, which would include multi-family housing, an outdoor food hall, and a hotel near Norco College. Norco has a population of 26,000 residents in its 14 square miles. The community is served by the Corona-Norco Unified School District.

Equestrian amenities line many of Norco’s streets.

4 C O R O N A

WARFARE CTR

S U R F A C E
NAVAL

P A R K

RIVERVIEW

CROSSROADS

P A R K

RIVER TRAILS

P A R K

BUTTERFIELD

P A R K

PRADO BASIN

CAM PU S

N O R C O

COLLEGE -

COMMUNITY

RIVERSIDE
U

AIRPORT

MUNICIPAL
CORONA
Norco
91 15
River
Trails
Park
Hidden Valley
Wildlife Area
Makin/Shearer
Sports Complex
Ingalls Park
Doty
P
Corydon
Staging
Area

PARKRIDGE AVE

SECOND ST

EVA AINROFILAC

TEMESCAL AVE

HIDDEN VALLEY PKWY

FIFTH ST

EVA EDISLLIH

FIRST ST

CORYDON AVE

FOURTH ST

RIVERRD

NORCO DR

SIXTH ST

EVA RENMAH
Santa Ana
River
Lake
Norconian

EASTVALE

JURUPA VALLEY
NORCO
RIV
CORONA
NORCO
ZONING
ZONING
Low Density Agricultural/
Residential
Open Space, Parks, and Public
Land
Commercial
Manufacturing and Industry
Animal-Keeping Overlay
Specific Plan Area
0 0.5 1 MILES

BASEMAP
Norco Boundaries
Parks
Water Bodies
Figure 1. Land Use

City of Norco | Pedestrian and Bicycle Master Plan
5 Previous Plans and Policies
Norco has other plans and policies which support the goals of the Pedestrian and Bicycle Master Plan including the General Plan’s Circulation Element and the Comprehensive Trail Master Plan. While both of theses plans encourage the development of equestrian trails which also allow for pedestrian access, there are few recommendations for bicycle circulation. Previous planning documents in Norco state that the existing City trails are intended for pedestrians and equestrians, however bicyclists may legally ride on the trails too. Still, bicyclists and equestrians sharing trail space may be uncomfortable for both users, and bicyclists may need to reach destinations that are not connected to the trails network.

The purpose of this Pedestrian and Bicycle Master Plan is to augment these previous plans by identifying and prioritizing bicycle and pedestrian networks and recommending
programmatic and infrastructure improvements that create a safe, welcoming atmosphere for all users of the public right of way, regardless of transportation mode. In particular, this Plan will provide bicycle connections across barriers like Hamner Avenue and the I-15 Freeway, will recommend improvements near schools for students walking and biking, will connect to the future Santa Ana River Trail (SART), and will address other gaps in the network and take advantage of opportunities to make walking and biking safer in the City.

City of Norco General Plan (2000)
The Circulation Element of Norco’s General Plan focuses on both equestrian and road circulation, with considerations for future travel demands including for pedestrians and bicyclists.

6 Many of the alternative transportation goals and policies in the Plan center on trails, but also describe the need to expand the public transportation and bicycle facilities network. The Plan states that out of town commuters pose a danger to equestrians, bicyclists, and pedestrians as the commuters may not expect to see these users on or near roadways and notes that the City must work to protect these users from vehicle traffic through separate facilities and traffic calmed residential streets.

According to this Plan, the City has designated the existing trail network to be for equestrians and pedestrians only. However, as a part of this Bicycle and Pedestrian Master Plan, the City will explore options to make bicycling more comfortable on and off the trails network.

The Circulation Element considers different types of trails in Norco:

Primary Access Trails are wide trails which can accommodate pedestrians, equestrians, and bicyclists and include rest stops, kiosks, and maps. When constructed, primary access trails should connect to major destinations like Riverside Community College, Norco Hills, and the Santa Ana River. Secondary Trails exist along most roads in the City and are the most common trail type in Norco. Tertiary Trails are smaller trails in residential areas, and Natural Equestrian Trails are located on the edge of town for equestrians and hikers. Typically, trails in Norco are twelve feet wide, with a forty-two inch high rail fence, which can be composed of a variety of materials including wood or PVC, and are separated from the street with a six-foot wide parkway buffer. The Plan notes that drainage channels can be studied for future trail use.

Relevant policies in the Circulation Element include:
• Policy 1.11 Encourage the reduction of vehicle trips through implementation of Transportation Demand Management
(TDM) strategies, such as requiring major employers to
prepare Transportation Management Plans with provisions for carpooling, vanpooling, flexible work hours, etc.
• Policy 2.3 Establish bus shelters at RTA stops to increase public recognition and use of the local and regional transit system.
• Policy 2.5 Continue to maintain and improve the City’s system of equestrian trails to also meet the needs of pedestrians within the community.
• Policy 2.7 Support the development of the Crest to Coast Trail (equestrian, biking, and hiking) through the Santa Ana River corridor.
• Policy 2.9 Provide a system of bicycle facilities (paths, lanes, and routes) in conjunction with circulation system roadway improvements to separate bicycle traffic from equestrian trails.
• Policy 2.11 Provide safe and convenient equestrian/pedestrian access between residential neighborhoods and the parks, open space and schools which service those neighborhoods. • Policy 2.12 Provide safe crossings of major arterials for pedestrians and equestrians.
• Policy 3.3 Encourage the design of a residential street system that reduces traffic, or reduces the speed of through traffic.

These street designs may include “traffic calming” methods where these methods would not impede access and response time by emergency vehicles.

City of Norco | Pedestrian and Bicycle Master Plan
7 City of Norco Comprehensive Trail Master Plan
(2018)
The City created the Comprehensive Trail Master Plan (TMP) to promote the expansion and maintenance of Norco’s equestrian and pedestrian trails. The trails in Norco allow people walking and riding horses to access commercial areas, neighborhoods, and parks for transportation and recreation. The intent of the TMP’s goals and policies is to provide a safe system of trails separate from vehicle traffic, that encourages residents to choose alternative transportation options. The TMP also recommends trail amenities such as wayfinding and informational signage to keep users aware of trail conditions and ratings.

Most of Norco’s trails are secondary trails. This trail on River Road is one of the few in the City which has an accompanying bicycle lane.

Similar to the General Plan, the TMP identifies four trail types.

While primary access trails, like the future segment of the Santa Ana River Trail, will allow for bikes, secondary trails (also known as Bridle or Soft Shoulder trails) are not intended for bicycle traffic because of potential equestrian conflicts, although the Bicycle and Pedestrian Master Plan will work to address these potential conflicts. Most trails in Norco are secondary trails.

The smaller tertiary and natural trails are also not suitable for cyclists of all ages and abilities. Figure 2 shows the existing trail circulation map.

Relevant Policies in the Trail Master Plan:
• Policy 1.1 Develop a circulation system of equestrian trails connecting all residential lots into a city-wide network that connects residential areas with commercial areas, public facilities, and open space/recreational elements.
• Policy 1.2 Establish a trail system that is separate and safe from vehicular traffic with appropriate (signalized as necessary) road and intersection crossings to maintain
circularity of the trail system.
• Policy 2.3 Provide safe and convenient equestrian/pedestrian access between residential neighborhoods and the parks, open space and schools which service those neighborhoods. • Policy 2.4 Provide safe crossings of major arterials for pedestrians and equestrians.
• Policy 5.1 Establish trails that are separate and safe from vehicular traffic with appropriate (signalized as necessary) road and intersection crossings to maintain circularity of the trail system.

8 • Policy 6.6 The Norco Hills Trail Marker program should be continued and promoted, identifying trails in the hillside areas for recreational purposes, providing educational information on surrounding habitat and points of interest, and to develop an objective trail rating system for both equestrians and hikers for user ability and conditions.

9 Figure 2. Trail Master Plan Circulation Map

C O R O N A

WARFARE CTR

S U R F A C E
NAVAL

P A R K

RIVERVIEW

CROSSROADS

P A R K

RIVER TRAILS

P A R K

BUTTERFIELD

P A R K

PRADO BASIN

CAM PU S

N O R C O

COLLEGE -

COMMUNITY

RIVERSIDE
U
L

AIRPORT

MUNICIPAL
CORONA
Norco
91 15
River
Trails
Park
Makin/Shearer
Sports Complex
Ingalls Park
Doty
Pa
Hidden Valley
Wildlife Area
CORONA

EVA RENMAH
Corydon
Staging
Area

NORCO COLLEGE

NAVAL SEA

SYSTEMS

COMMAND

PARKRIDGE AVE

SECOND ST

EVA AINROFILAC

TEMESCAL AVE

HIDDEN VALLEY PKWY

FIFTH ST

FIRST ST

CORYDON AVE

FOURTH ST

RIVERRD

NORCO DR

SIXTH ST

EVA EDISLLIH
Santa Ana
River
Lake
Norconian

EASTVALE

JURUPA VALLEY
NORCO
RIV
NORCO

EXISTING TRAIL

NETWORK

BASEMAP
Parks
Water Bodies
Norco College
Navy Base
Norco Boundaries

EXISTING TRAILS
Backyard
Bridle
Natural
Riverbed
Soft Shoulder
0 0.5 1 MILES

10 CLASSIFICATION RIGHTOF-WAY

PAVEMENT/
NO. OF
LANES

PARKWAY
Local 60’ 36’/2 Equestrian trail
on one side
Collector 88’ 64’/4 Equestrian trail
on one side
Major Arterial 2E tbd 36’/2 Equestrian trail
on both sides
Major Arterial 4 100’ 80’/4 10’ sidewalk
on both sides
and 12’ raised
median
Major Arterial 4E 100’ 64’/4 Equestrian trails
on both sides
Urban Arterial 110’ 86’/6 8’ sidewalk, 4’
parkway on both
sides and 14’
raised median
or 10’ striped
median
Table 1. Norco General Plan Typical Cross-Sections Street Design Standards Review As detailed in the City’s General Plan, there are six street classifications in Norco, as shown in Table 1 and Figure 3. The Plan identifies a number of truck routes throughout the City including Hamner Avenue, Sixth Street (from Hamner Avenue to California Avenue), California Avenue (from Sixth Street to North Drive), North Drive, and River Road.

Pedestrian, equestrian, and bicycle updates to Norco’s streets are made with funding through development fees, the city capital improvement program (CIP), maintenance programs, and available state and federal funding. Norco’s Public Works Department has specifications and standards for sidewalk and trail installation, but has minimal standards for bikeways.

City of Norco | Pedestrian and Bicycle Master Plan
11 Figure 3. Norco General Plan Typical Cross-Sections
Local Collector
Major-4
River Road
Major-4E
Sixth Street
Hidden Valley Parkway (1/2)
Urban Arterial
Hamner Avenue Without Median
Urban Arterial
Hamner Avenue
With Raised Median

12 Bicycle and Pedestrian Inventory
Review
Bicycle Network
Norco’s bicycle network is composed of Class II and III facilities.

A Class II bike lane is a dedicated lane for travel adjacent to traffic, consisting of a painted white line separating the bicycle lane from motor vehicle traffic. A Class III Bicycle Route is a signed bike route that people biking share with motor vehicles. It consists of pavement markings, signage, and sometimes traffic control devices to create a more comfortable riding experience.

Norco does not have any shared-use paths, buffered bicycle lanes, bicycle boulevards, or separated bikeways.

Norco’s Class II bike lanes are mapped in Figure 4 and are located on River Road, Corydon Avenue/Norco Drive, and Hidden Valley Parkway. Class III bike routes are located in the northeast near River Drive, although some of the roadway markings are faded and difficult to see. This bicycle infrastructure connects the south, west, and north perimeters of the City which connect to residential neighborhoods, schools, and small commercial areas.

There is no bicycle infrastructure within the core of the City, including to the retail areas on Hamner Avenue and Sixth Street, to Norco College, or to the majority of residences. The City currently has no planned bicycle facilities yet to be implemented.

Bicycle Support Facilities
Active transportation support facilities like bike parking, bike fix-it stations, seating, hydration stations, and shade structures can make walking and biking feel more comfortable and may Facility Type Mileage
Class II Bicycle Lane 3.5
Class III Bicycle Route 3.5
Complete Network 7 Miles
Table 2. Existing Bikeway Network
encourage more residents to use active transportation in their daily lives. Large chain businesses in Norco like Staples, Target, L.A. Fitness, and Rite Aid have bike racks outside of their stores.

However, most other businesses in Norco’s commercials areas do not have biking support facilities, nor do community service locations such as the post office and the public library.

Most of the parks in Norco have facilities like benches and tables, restrooms, water fountains, and trash cans, but also lack bicycle parking. There are several parks in Norco, but they are mostly near the perimeter of the City, leaving residential and commercial areas lacking in support facilities.

13 Figure 4. Existing Bicycle Network

C O R O N A

WARFARE CTR

S U R F A C E
NAVAL

P A R K

RIVERVIEW

CROSSROADS

P A R K

RIVER TRAILS

P A R K

BUTTERFIELD

P A R K

PRADO BASIN

CAM PU S

N O R C O

COLLEGE -

COMMUNITY

RIVERSIDE

AIRPORT

MUNICIPAL
CORONA
Norco
91 15
River
Trails
Park
Makin/Shearer
Sports Complex
Ingalls Park
Doty
P
Hidden Valley
Wildlife Area
Corydon
Staging
Area

NORCO COLLEGE

NAVAL SEA

SYSTEMS

COMMAND

PARKRIDGE AVE

SECOND ST

EVA AINROFILAC

TEMESCAL AVE

HIDDEN VALLEY PKWY

FIFTH ST

FIRST ST

CORYDON AVE

FOURTH ST

RIVERRD

NORCO DR

SIXTH ST
Santa Ana
River
Lake
Norconian

EASTVALE

JURUPA VALLEY
NORCO
RIV
CORONA

EVA RENMAH

EVA EDISLLIH
NORCO

EXISTING BIKE

NETWORK

BASEMAP
Parks
Water Bodies
Norco College
Navy Base
Norco Boundaries

EXISTING BIKEWAYS
Class II Bike Lane
Class III Bike Route
Class I Bike Route
Class I Proposed
0 0.5 1 MILES

14 The existing Class III infrastructure in Norco can be difficult to see, like these sharrows on River Drive.

Most crosswalks in Norco are not high visibility crosswalks, including the scramble crosswalk at Fifth Street and Hamner Avenue.

Pedestrian Facilities
There are over 100 miles of equestrian trails in Norco, which pedestrians can also use. However, many of these trails may not be usable or comfortable for people using wheelchairs or other mobility devices. Additionally, accessibility facilities like curb ramps with truncated domes are sparse in residential areas, which can limit the ability for users to safely cross intersections.

Concrete sidewalks are limited to Hamner Avenue and Hidden Valley Parkway within the commercial areas along both of these streets. Third Street leading to Norco College also has concrete sidewalks. Other than in school zones, most intersections in Norco do not have high visibility crosswalks, including on major roads like Sixth Street and Hamner Avenue. The intersection of Fifth Street and Hammer Avenue, near Neal Snipes Park, does features a scramble crosswalk, but this is also not high visibility.

Because of the equestrian nature of the City, some crosswalks, such as those on Sixth Street, have push buttons for both pedestrians and equestrians.

At this school zone crosswalk there are no curb ramps, sidewalks, or trails, requiring pedestrians to walk in the road.

City of Norco | Pedestrian and Bicycle Master Plan
15 Trail Network Users and Needs
Equestrians, pedestrians, and bicyclists may all legally use the trail network in Norco, however these groups have different infrastructure needs to use the network safely and comfortably.

The trail network allows Norco residents to preserve their rural lifestyle and ride horses to their destinations, which often feature hitching posts and other equestrian infrastructure.

The trails provide a dirt path for equestrians to use that is separated from vehicles, and the network includes equestrian crossing infrastructure and signage. Some pedestrians may also find the trails network to be a soft and comfortable walking path separated from vehicle travel, however, for pedestrians using mobility devices the trails may be difficult to navigate, particularly if there is not basic crossing infrastructure like accessible curb ramps at intersections.

While bicyclists can use the trail network, they may not always prefer it. Trail riding may be appropriate for students riding to school because of the separation from cars and the trail and sidewalk connections to most schools in the City. However, trail riding requires a type of bicycle that can handle the rougher terrain and requires an understanding of how a bicycle handles on dirt rather than on pavement, especially if the ground is wet or muddy. Even for bicyclists that do prefer using the trails, there may be a perception in the City that it is unsafe for bicyclists and equestrians to share trail space because bicyclists may not slow down around a horse, causing the horse to be startled.1 Norco’s
bicycle network can benefit from safe, on-street bicycle facilities that lead to popular destinations in the City like the future SART, retail areas on Hamner Avenue and Sixth Street, and Norco College.
1 AASHTO Guide for the Development of Bicycle Facilities. (2012): 5-12.

At the intersection of Sixth Street and Valley View Avenue, there is a corner with no curb ramps, which can be a barrier to safe pedestrian access.

Along River Drive, bicyclists must choose between riding in the street, or riding on the trail, which can can get wet and muddy.

16 Signage
Norco bike, equestrian, and pedestrian facilities have some scattered signage throughout the City to designate different infrastructure for different modes. Norco Drive has bike lane signage along the Class II bike lane serving as a notice for vehicle traffic. River Drive has sharrow markings on the street and bike route signs indicating a connection to the Santa Ana River Trail.

Some intersections also have pedestrian crossing signs as a warning for oncoming cars. Additionally, some neighborhood associations have taken it upon themselves to install signage to slow cars. ‘Horse Community Please Slow Down’ signs can be seen along the trails on Corydon Avenue and throughout the neighborhood.

The infrequency of signage may create a lack of clarity for which mode of transportation is allowed. The signs also do little to improve the safety of riding or cycling and do not provide adequate awareness to drivers.

Neighborhood Association Signage on Corydon Avenue.

Share the Road Signage on River Drive.

Bike Route Signage on Norco Drive.

City of Norco | Pedestrian and Bicycle Master Plan
17 School Facilities
Most of the schools in Norco feature high visibility crosswalks and school crossing signage. However, there are generally no sidewalks or curb ramps, which can make it difficult for those using mobility devices to get to school. Norco Elementary School, Intermediate School and High School are all on
Temescal Avenue. There are trails along Temescal Avenue by the Elementary School and High School, but the trails end approaching the Intermediate School. The Intermediate School and the High School both have concrete sidewalks in front of the schools, but connectivity ends at the ends of the school zone.

There are also traffic calming elements like speed feedback signs along Temescal Avenue.

Smaller schools like Sierra Vista Elementary School on Corona Avenue and Highland Elementary on Alhambra Street feature standard crosswalks that are not high visibility. Enhancing the bicycle and pedestrian infrastructure at the schools in Norco can encourage students to walk to school, which can reduce traffic congestion, decrease students’ risk of chronic disease, and improve academic performance.2
Temescal Avenue is a major thoroughfare that does not have any traffic calming elements other than paint and signage leading into the school zones. Physical road improvements, such as curbs, curb extensions or pedestrian islands, could help decrease traffic speeds around schools, making it safer for students to walk or bike. Additionally, there are no prominent bike racks in front of the schools that would encourage cycling. Many of the schools have trails in the surrounding vicinity, however, there are no curbs, allowing dirt and sediment into the shoulder of 2 Saferoutespartnership.org.

Replacing this standard crosswalk with a high visibility crosswalk would make students walking to Sierra Vista Elementary more visible when crossing the street.

The concrete sidewalk at Norco High School ends abruptly at a chain link fence, requiring pedestrians to move to the trail.
the road, making the surface condition unsafe for cyclists on the road. Hazards within 0.25 miles of a school are identified in Figure 5.

18 Figure 5. Norco Schools and Surrounding Infrastructure

C O R O N A

WARFARE CTR

S U R F A C E
NAVAL

P A R K

RIVERVIEW

CROSSROADS

P A R K

RIVER TRAILS

P A R K

BUTTERFIELD

P A R K

PRADO BASIN

CAM PU S

N O R C O

COLLEGE -

COMMUNITY

RIVERSIDE
UN
LA

AIRPORT

MUNICIPAL
CORONA
Norco
91 15
River
Trails
Park
Makin/Shearer
Sports Complex
Ingalls Park
Doty T
Par
Hidden Valley
Wildlife Area
Corydon
Staging
Area

NORCO COLLEGE

NAVAL SEA

SYSTEMS

COMMAND

PARKRIDGE AVE

SECOND ST

EVA AINROFILAC

TEMESCAL AVE

HIDDEN VALLEY PKWY

FIFTH ST

EVA EDISLLIH

FIRST ST

CORYDON AVE

FOURTH ST

RIVERRD

NORCO DR

SIXTH ST
Santa Ana
River
Lake
Norconian

EASTVALE

JURUPA VALLEY
RIVE
CORONA

EVA RENMAH
NORCO
NORCO

SCHOOLS AND

SURROUNDING

INFRASTRUCTURE

BASEMAP
Parks
Water Bodies
Norco Boundaries

SCHOOLS AND

INFRASTRUCTURE
Schools
Norco College
Class II Bike Lane
Class III Bike Route
Backyard
Bridle
Natural
Riverbed
Soft Shoulder
Norco Bus Route

0.5 Mile Buffer
0 0.5 1 MILES
No Crosswalks
Wide
Intersection
5 Lane Arterial
6 Lane Arterial
with Median
Major Arterial
Intersection
Wide Right Turn
Major
Unsignalized
Intersection
Busy Parking Lot Entrance
with Trees Blocking
Sightlines

City of Norco | Pedestrian and Bicycle Master Plan
19 This page intentionally left blank

20 Future Development
Implementing active transportation infrastructure prior to the construction of planned development can help ensure that residents living and working in the new development have multiple safe transportation options. Planning for future development can also prepare the City to require developers to install or pay for some of the planned active transportation recommendations as a condition of development. Presently, the City requires developers to pay an equestrian trails development impact fee to fund the acquisitions and improvement of trails in Norco. Planned development in Norco includes a large business park on Mountain Avenue and Norco Valley Square, a multifamily housing development and hotel near Norco College. Both of these developments can be seen in context of existing active transportation conditions in Figure 6.

Palomino Business Park
The Palomino Business Park project, which started construction in Spring 2022, is set to develop over 110 acres of land for industrial, commercial and office uses (Figure 6). Replacing an old egg processing plant, the park is expected to be the largest industrial development in the City, located on Mountain Avenue between Second Street and First Street. As a condition of development, the business park will include the construction and maintenance of trails on all sides of the business park.3 The implementation of a trail on Mountain Avenue will close a trail network gap in the industrial area, which may help employees walk or bike to work, however there is a need for supporting infrastructure to help trail users reach the business park. The 3 https://www.pressenterprise.com/2022/04/19/new-ranch-themedindustrial-warehouse-in-norco-will-be-biggest-in-citys-history/ intersections of First Street and Mountain Avenue, Second Street and Mountain Avenue, and Second Street and Pacific Avenue are unsignalized intersections without crosswalks. Upon completion of the business park, traffic of all modes will likely increase, and infrastructure like high visibility crosswalks and signalized intersections with pedestrian signals can help ensure everyone has safe access to the new development. Bicycle infrastructure like signage and street striping can help alert drivers of the presences of bicyclists in the area, particularly because one of the few bicycle collisions in the City has occurred at this development location on Second Street and Mountain Avenue. Additionally, while the trail network is mostly connected near this development, Hamner Avenue and the I-15 Freeway act as barriers in reaching the east side of the City. There is a trail on Third Street that travels under the freeway, but this is nearly a mile out of the way from the development.

Intersections like this one at First Street and Mountain Avenue lack pedestrian and bicyclist crossing infrastructure.

21 Figure 6. Future Development-Palomino Business Park
15 SECOND ST

HAMNER AVE

FIRST ST
H
R D
RIVER

PARKRIDGEAVE
CORONA
NORCO

PALOMINO

BUSINESS PARK
NORCO

FUTURE DEVELOPMENT

PALOMINO BUSINESS
PARK
Parks
City Boundaries

BASEMAP
Future Development

EXISTING INFRASTRUCTURE

TRAIL NETWORK
Backyard
Bridle
Soft Shoulder

TRANSIT
Norco Bus Route
0 0.1 0.2 MILES

22 Norco Valley Square
Another significant planned development in Norco is the Norco Valley Square development, which will include residences, food services, a performance stage, and a hotel (Figure 7).

Alongside the 320 rental units will be a recreation center with offices, meeting rooms, and fitness areas. The development will be located on the corner of Third Street and Hamner Avenue, near Norco College and John F. Kennedy Middle College High School. The project promises to promote walking, biking, and horseback riding, and includes a planned trail along the development’s frontage on Hamner Avenue and on Third Street, and improvements to nearby sidewalks.4
The development is geared towards students at Norco College and accommodations for their families, making it a convenient location from which students can walk and bike to school.

Residents can also quickly walk to the bus stop on Third Street.

As the development is on the west side of the street, and the college, high school, and bus stop are on the east side, crossing infrastructure will be crucial to ensure safe access to these destinations. There is only one existing crosswalk on Third Street, which includes a flashing beacon, directly in front of the high school, requiring pedestrians walking to the bus stop to backtrack and cross at the Third Street and Hamner Avenue intersection. The retail areas on the northwest side of Hamner Avenue also lack sidewalks, and the entirety of Hamner Avenue lacks trails, making it difficult for people walking or biking to access the amenities on the arterial. There has been a pedestrian collision at the Third Street and Hamner Avenue intersection, and 4  https://files.ceqanet.opr.ca.gov/259936-4/attachment/ ThNnzCOfzqMjyViYxTgYoOihj-8nQphO6cUfhMM_dLTbQpMGJ4ogl56Mif_ nweN5WmwbSMMlEAt7GeNd0
This is the only crosswalk on Third Street, which would be used by future students walking from the Norco Valley Square development to Norco College.

The west side of Hamner Avenue does not have sidewalks or trails, requiring pedestrians and bicyclists to navigate through parking lots to reach the retail and services here.
another just a block away at Lampton Lane and Hamner Avenue.

As traffic increases with the completion of the development, it will be imperative to have safe walking and biking options in this area.

23 Figure 7. Future Development-Norco Valley Square
15 NORCO COLLEGE

NAVAL SEA

SYSTEMS

COMMAND

HAMNER AVE

THIRD ST NORCO
VALLEY
SQUARE
Lake
Norconian
NORCO

FUTURE DEVELOPMENT

NORCO VALLEY SQUARE

BASEMAP
Future Development
Water Bodies
City Boundaries
Navy Base
Norco College

EXISTING INFRASTRUCTURE
Norco Bus Stops

TRAIL NETWORK
Backyard
Bridle
Soft Shoulder

TRANSIT
Norco Bus Route
0 0.1 0.2 MILES

24 Santa Ana River Trail (SART) Access
The SART is a regional recreation trail that, when complete, will span 110 miles from the Pacific Ocean to the San Bernardino Mountains. Much of the trail south of the City of Corona through Orange County has been completed. The Santa Ana River Trail Master Plan was written in 2011 to guide the implementation of the Corona, Norco, and Eastvale segments of the trail. During that planning process, the City of Norco staff recommended to the SART Master Plan team that the SART utilize existing trails and plan for on-road alignments on streets that are planned for roadway widening.

The SART Master Plan includes recommendations for a long term trail alternative with multi-use trails and more costly construction, and a shorter term interim trail alternative which uses existing and lower cost bikeway infrastructure (Figure 8).

Long term recommendations in the Master Plan recommend
constructing a multi-use trail on the Eastvale side of the river from River Road to Hamner Avenue outside of Norco. At the eastern end of Eastvale Community Park, the trail will follow the proposed Hamner Avenue bridge trail lane with both a softsurface trail and on-street separated bike path, and cross over the I-15 Freeway until reaching an existing maintenance road to continue onto River Drive.

The interim recommendation of the SART through Norco directs users to the existing trails and Class II bike lanes on Corydon Avenue/Norco Drive. When users reach Norco Community
Center Park they will be directed to proposed bike lanes on Cedar Avenue, Alhambra Street, Hamner Avenue, Taft Street, Old Hamner Road, Detroit Street and Woodward Avenue in
Corydon Avenue/Norco Drive already features Class II bike lanes and trails on either side of the street.
order to bypass the large Hamner Avenue and Sixth Street intersection and reach River Drive.

The SART will continue parallel to the existing soft surface trails on River Drive, Eighth Street and North Drive, alongside proposed on-street separated bikeways.

Corydon Avenue/Norco Drive already has Class II bike lanes implemented on the street, however the proposed Class II bike lanes from Cedar Avenue to River Drive are existing Class III bike routes which offer no vehicle separation for bicyclists.

Implementing the Class II recommendations on these streets can provide a bike network that safely guides bicyclists across Hamner Avenue and over the I-15 Freeway. It will be important to include signage at Cedar Avenue and Norco Drive that points bicyclists to Cedar Avenue, otherwise bicyclists may continue riding towards the large Hamner Avenue and Sixth Street intersection, which does not have on-street bicycle infrastructure.

City of Norco | Pedestrian and Bicycle Master Plan
25 River Drive has existing Class III bike routes. The SART Master Plan proposes Class IIb bikeways on River Drive from Woodward Avenue to Pedley Avenue, which are on-street twoway bikeways separated from vehicles with a low barrier in the pavement. As this segment is one of the longest sections of the SART through Norco, the City has an opportunity to implement these bikeways, creating a comfortable, connected route through northern Norco. Implementing the bikeway along River Drive will require widening the existing street, but will result in a safe, comfortable path for residents and visitors.

Implementing the SART recommendations in Norco will
provide safer bicyclist access to the Santa Ana River and will provide a connected route through the City from Corona to Riverside. These bikeways can also help connect bicyclists to residences, schools, parks, and the trails network. However, these bicycle improvements still leave much of Norco without bicycle infrastructure. For residents in Norco that would like to recreationally ride on the SART, reaching the bicycle lanes or future multi-use trail along the river may be difficult, especially if the rider prefers to not use the trail network in Norco.

River Drive offers scenic views for SART riders, but will require the City to widen the street to allow for a two-way on-street bikeway.

26 ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !
§¨¦51
Citrus St
Old Hamner Rd
Woodward Ave.

River Dr
Pedley Ave
8th St
Crestview Dr
River Rd

N O R C O
5 th St River Rd
Archibald Ave
Norco Dr Detroit St
Entrance to
Hidden Valley
Wildlife Area
& County Trail
Hamner Ave

R I V E R S I D E
Sierra Ave
Cedar Ave Alhambra St
Acacia Ave
Taft St
Corydon St
NORCO

EASTVALE
Hidden Valley
Wildlife Area

REACH VIII

REACH IX

REACH IX

REACH X

REACH XI

REACH XII

RIVERSIDE
Kendra Ln
S a n t a A n a R i v e r
Dearborn St
Sumner Ave
Eastvale
Community
Park
Silverlakes
Equestrian
and Sports
Park
Corydon
Staging/
Wayne
Makin
Shearer
Sports
Complex
Norco
Comm.

Center
Park
Clark
Mem.

Park
SPUR A
SPUR B
Alhambra St.

Grapewin St
North Dr. California Ave.

Arlington Ave
Corydon Ave
Bluff St
Map 1-2: Santa Ana River Trail - Recommended Trail Alignments, Reaches IX-XII 0 1,850 3,700 7,400Feet
² MATCH
LINE
May 23, 2011
Legend
Recommended, Class II Bike Lanes
Recommended, Multi-use Trail
Recommended, Class I Bikeway - Spur
Existing, Class I - Spur
Existing, Soft Surface Trail - Spur
Recommended, Soft Surface Trail Future, Soft Surface Trail Reach Extent Lines
Recommended, Class I Bikeway
City Boundary
Recommended, Class Ib - On-Road
Recommended, Class Ib - On-Road - Spur
Recommended, Soft Surface Trail - Spur
Recommended, Multi-use - Spur
Future, Class I Bikeway
Future, Multi-use Trail
Existing, Soft Surface Trail
Santa ana RiveR tRail MaSteR Plan
ne 2011 Pg. 27
Figure 8. Santa Ana River Trail Recommended Alignments (Source: Santa Ana River Trail Master Plan)

City of Norco | Pedestrian and Bicycle Master Plan
27 This page intentionally left blank

28 The two transit stops in Norco, like this one at Norco College, have shade, seating, transit information, and trash receptacles.

Transit Integration
The Riverside Transit Authority’s bus route 3 is the only public transit available in Norco. The route travels from the Corona Transit Center into Norco, and has two stops in Norco, one at Norco College and one at Market Street and Clark Avenue before continuing into Eastvale (Figure 9). These limited transit stops may require residents to walk several miles to reach their destinations. Both transit stops have benches and shade, and are in areas with concrete sidewalks.

Norco also offers a free “Seniors on the Move” transportation service which provides a free shuttle for older and disabled residents. These shuttles require a reservation at least one week in advance.

29 Figure 9. Norco Transit Routes

C O R O N A

WARFARE CTR

S U R F A C E
NAVAL

P A R K

RIVERVIEW

CROSSROADS

P A R K

RIVER TRAILS

P A R K

BUTTERFIELD

P A R K

PRADO BASIN
A

CAM PU S

N O R C O

COLLEGE -

COMMUNITY

RIVERSIDE
UN
LA

AIRPORT

MUNICIPAL
CORONA
Norco
91 15
River
Trails
Park
Makin/Shearer
Sports Complex
Ingalls Park
Doty T
Par
Hidden Valley
Wildlife Area
Corydon
Staging
Area

NORCO COLLEGE

NAVAL SEA

SYSTEMS

COMMAND

PARKRIDGE AVE

SECOND ST

EVA AINROFILAC

TEMESCAL AVE

HIDDEN VALLEY PKWY

EVA RENMAH

FIFTH ST

FIRST ST

CORYDON AVE

FOURTH ST

RIVERRD

NORCO DR

SIXTH ST

EVA EDISLLIH
CORONA
Santa Ana
River
Lake
Norconian

EASTVALE

JURUPA VALLEY
NORCO
RIVE
NORCO

EXISTING TRANSIT

NETWORK

BASEMAP
Parks
Water Bodies
Norco College
Navy Base
Norco Boundaries

EXISTING TRANSIT
Norco Bus Route
Norco Bus Stops
0 0.5 1 MILES

30 Demographics Analysis
According to the 2020 American Community Survey (ACS), 80% of residents in Norco drove alone to work and 7% drove to work with a carpool. 8% of residents worked from home, a cumulative total of 1% of residents walked or biked to work, and 0.7% of residents used public transportation to get to work (Figure 10).

Less than 1% of residents do not have access to a vehicle in Norco.

The median household income in Norco is $106,370, which is higher than the median income of all of California ($78,672).

6.5% of Norco residents live in poverty, compared to 12.5% of residents in all of California. The census tract in the center of Norco, which includes the intersection of Hamner Avenue and Fourth Street has the highest percentage of people living in poverty in the City (35%).
56% of Norco’s population is white, and 36% of the population is Hispanic or Latino.5
5 American Community Survey, 5-year data, 2020.
80%
7%
8%
1% 0.70%
3%
Commute to Work
Drove Alone Carpool Worked from Home Walked or Biked Public Transit Other Figure 10. Commute to Work (ACS)

City of Norco | Pedestrian and Bicycle Master Plan
31 CalEnviroScreen 4.0
The California Office of Environmental Health Hazard
Assessment created the CalEnviroScreen tool to help identify communities in California that are disproportionately burdened from pollution and other negative environmental factors. The tool measures pollution data like ozone contamination and drinking water contamination with population characteristics like asthma rates, low birth weight, and poverty. When results are used for California’s Active Transportation Program grant application, (a common funding source for bicycle and pedestrian facilities) communities that score 75 or higher are considered disadvantaged, and communities that score 95 or higher are considered severely disadvantaged.

Much of Norco has low CalEnviroScreen scores, indicating the City has no communities that the state would consider disadvantaged. In the city center, near the naval base, scores are higher, and in the center to the east of the I-15 Freeway the score is 71. These higher scores in the center of Norco may be due to proximity to the I-15 Freeway, as well as being further away from the open space in the City (Figure 11).

In addition to calculating a total score, CalEnviroScreen also provides scores for communities on individual pollution burden categories and population characteristics. PM2.5 are small particles which come from cars and trucks and can cause health problems like heart and lung disease. The entire City of Norco scores between 92-93 for the amount of PM2.5, meaning Norco has more of this type of pollution than 92% of the rest of the census tracts in California. Similarly, diesel particulate matter from diesel engines contribute to eye, nose, and throat irritation and heart and lung disease. The northern center census tract scores 73% higher for diesel particulate matter compared to other California census tracts (Figure 12). These center census tracts also score a 75 for rates of cardiovascular disease, which can be made worse by air pollution.6
6  CalEnviroScreen 4.0 Indicator Maps, OEHHA.

32 Figure 11. CalEnviroScreen 4.0

C O R O N A

WARFARE CTR

S U R F A C E
NAVAL

P A R K

RIVERVIEW

CROSSROADS

P A R K

RIVER TRAILS

P A R K

BUTTERFIELD

P A R K

PRADO BASIN

CAM PU S

N O R C O

COLLEGE -

COMMUNITY

RIVERSIDE
UN
LA

AIRPORT

MUNICIPAL
CORONA
Norco
91 15

PARKRIDGE AVE

SECOND ST

EVA AINROFILAC

TEMESCAL AVE

VALLEY P K WY

HIDDE N

EVA RENMAH

FIFTH ST

EVA EDISLLIH

CORYDON AVE

FOURTH ST

RIVERRD

NORCO DR

SIXTH ST

FIRST ST
NORCO
19 52
44 35
71 44
53 41
48 60
66 65
29 86
86 84
58 30
62 37
55 74
7 27
36 23
66 NORCO
CALENVIROSCREEN 4.0

BASEMAP
Norco Boundaries

PERCENTILE
0-19
20-39
40-59
60-79
80-100
0 0.5 1 MILES

33 Figure 12. Diesel Particulate Matter

C O R O N A

WARFARE CTR

S U R F A C E
NAVAL

P A R K

RIVERVIEW

CROSSROADS

P A R K

RIVER TRAILS

P A R K

BUTTERFIELD

P A R K

PRADO BASIN

CAM PU S

N O R C O

COLLEGE -

COMMUNITY

RIVERSIDE
UN
LA

AIRPORT

MUNICIPAL
CORONA
Norco
91 15

PARKRIDGE AVE

SECOND ST

EVA AINROFILAC

TEMESCAL AVE

VALLEY P K WY

HIDDE N

EVA RENMAH

FIFTH ST

EVA EDISLLIH

CORYDON AVE

FOURTH ST

RIVERRD

NORCO DR

SIXTH ST

FIRST ST
NORCO
33 93
55 51
64 47
79 41
50 43
71 85
23 94
94 20
40 38
92 73
25 17
8 34
15 8
95 NORCO
CALENVIROSCREEN 4.0

DIESEL PARTICULATE
MATTER

BASEMAP
Norco Boundaries

PERCENTILE
0-19
20-39
40-59
60-79
80-100
0 0.5 1 MILES

34 Healthy Places Index
The Public Health Alliance of Southern California also has a tool which considers public health aspects like income, education, housing conditions, and environmental conditions. The Healthy Places Index (HPI) tool measures these aspects and compares census tracts to others in the state. Per the HPI tool, Norco has healthier community conditions than 64% of other California cities.

35 Figure 13. Healthy Places Index

C O R O N A

WARFARE CTR

S U R F A C E
NAVAL

P A R K

RIVERVIEW

CROSSROADS

P A R K

RIVER TRAILS

P A R K

BUTTERFIELD

P A R K

PRADO BASIN

CAM PU S

N O R C O

COLLEGE -

COMMUNITY

RIVERSIDE
U

AIRPORT

MUNICIPAL
CORONA
Norco
15 75
65 65
61 26
59 67
64 42
34 54
59 56 46
73 64
41 61
70 62
41 28
28 13

PARKRIDGE AVE

SECOND ST

EVA AINROFILAC

TEMESCAL AVE

HIDDEN VALLEY PKWY

HAMNER AVE

FIFTH ST

EVA EDISLLIH

FIRST ST
CORYDO
N
AVE

FOURTH ST

RIVERRD

NORCO DR

SIXTH ST
NORCO
NORCO

HPI SCORE

PERCENTILE
0 to 25 (Less Healthy
Conditions)
26 to 50
51 to 75
76 to 100 (More Healthy
Conditions)
No Data
0 0.5 1 MILES

BASEMAP
Norco Boundaries

36 Collision Analysis
Understanding bicycle and pedestrian collision information can provide insight into areas or corridors that may have unsafe design features or encourage behaviors that can contribute to collisions. This collision data will inform the recommendations of this Plan to address the challenges of walking and biking in the City.

The project team obtained collision data from the Statewide Integrated Traffic Records System (SWITRS), where the
California Highway Patrol and local law enforcement agencies upload collision data. The project team evaluated five years of data, from January 1, 2017 to December 31, 2021.7
A total of 489 crashes occurred in Norco during the study period. 37 (7.6%) of these crashes involved a pedestrian or bicyclist.

As the ACS estimates only 1% of residents biking or walking to work, this crash data may indicate that people walking and biking are disproportionately represented in traffic collisions in Norco.

SWITRS data also includes a catch-all victim category, which can include ridden animals, such as a horse, although SWITRS does not specify the type of animals involved in these collisions.

During the study period, there were 7 collisions (1%) in this category, 1 of which also involved a pedestrian. Figure 15 shows the bicycle and pedestrian collision combined in a heat map.

Collisions are concentrated along Hamner Avenue, particularly near Fifth Street and First Street where there are commercial areas. There is also an area of dense collisions near Temescal Avenue and Fourth Street, which is the location of Norco Intermediate School.
7  This data may not account for all collisions that occurred in Norco, such as those that go unreported.

As shown in Figure 14 the total number of pedestrian and bicycle crashes decreased during the study period from a peak in 2017, but since 2019 has risen by one additional crash per year. 11 8
5 6
7 2017 2018 2019 2020 2021
Number of Pedestrian and Bicyclist
Crashes per Year
Figure 14. Number of Crashes per Year

37 Figure 15. Heat Map of Bicycle and Pedestrian Collisions 2017-2021

C O R O N A

WARFARE CTR

S U R F A C E
NAVAL

P A R K

RIVERVIEW

CROSSROADS

P A R K

RIVER TRAILS

P A R K

BUTTERFIELD

P A R K

PRADO BASIN

CAM PU S

N O R C O

COLLEGE -

COMMUNITY

RIVERSIDE
U
L

AIRPORT

MUNICIPAL
CORONA
Norco
91 15
River
Trails
Park
Makin/Shearer
Sports Complex
Ingalls Park
Doty
Pa
Hidden Valley
Wildlife Area
Corydon
Staging
Area

PARKRIDGE AVE

SECOND ST

EVA AINROFILAC

TEMESCAL AVE

HIDDEN VALLEY PKWY

FIFTH ST

EVA EDISLLIH

FIRST ST

CORYDON AVE

FOURTH ST

RIVERRD

NORCO DR

SIXTH ST
Santa Ana
River
Lake
Norconian

EASTVALE

JURUPA VALLEY
NORCO
RIVE
CORONA

EVA RENMAH
NORCO

COLLISION DENSITY
2017-2021
Collisions

COLLISION DENSITY
0-1
1-2
2-3
3-4
4-5

COLLISION POINTS
0 0.5 1 MILES

BASEMAP
Parks
Water Bodies
Norco Boundaries

38 Pedestrian Collisions
Of the 25 pedestrian crashes, 3 (12%) were fatal and 6 (24%) resulted in a severe injury (Figure 16). According to the crash reports, 64% of the total pedestrian crashes were due to a pedestrian violation, including a pedestrian failing to yield the right-of-way to a vehicle and a pedestrian failing to cross at a crosswalk.8 12% were due to pedestrian right of way, indicating a driver did not stop for a pedestrian crossing the street. Improved pedestrian facilities can help prevent future crashes by providing safe, visible crossing infrastructure for pedestrians to use.

Pedestrian collisions occurred throughout the City, but were most concentrated near the I-15 Freeway, particularly along Fifth Street, Sixth Street and along Hamner Avenue near commercial areas (Figure 17). The proximity of the collisions near the I-15 Freeway indicate that crossing the highway is a barrier for pedestrians and may limit the destinations people walking feel comfortable traveling to in Norco.
8  It is important to note that it is legal for a pedestrian to cross at unmarked crosswalks at all intersections.
12%
24%
40%
24%
Pedestrian Crash Severity
Fatal Injury (Severe) Injury (Other Visible) Injury (Complaint of Pain) Figure 16. Pedestrian Crash Severity

39 Figure 17. Pedestrian Collisions 2017-2021

C O R O N A

WARFARE CTR

S U R F A C E
NAVAL

P A R K

RIVERVIEW

CROSSROADS

P A R K

RIVER TRAILS

P A R K

BUTTERFIELD

P A R K

PRADO BASIN

CAM PU S

N O R C O

COLLEGE -

COMMUNITY

RIVERSIDE
U

AIRPORT

MUNICIPAL
CORONA
Norco
91 15
River
Trails
Park
Makin/Shearer
Sports Complex
Ingalls Park
Doty
P
Hidden Valley
Wildlife Area
Corydon
Staging
Area

NORCO COLLEGE

NAVAL SEA

SYSTEMS

COMMAND

PARKRIDGE AVE

SECOND ST

EVA AINROFILAC

TEMESCAL AVE

HIDDEN VALLEY PKWY

FIFTH ST

FIRST ST

CORYDON AVE

FOURTH ST

RIVERRD

NORCO DR

SIXTH ST

EVA EDISLLIH

EVA RENMAH
Santa Ana
River
Lake
Norconian

EASTVALE

JURUPA VALLEY
RIV
CORONA
NORCO
NORCO

PEDESTRIAN
COLLISIONS 2017-2021

PEDESTRIAN COLLISION
Pedestrian Collision with
Injury
Pedestrian Collision with
Fatality
0 0.5 1 MILES

BASEMAP
Parks
Water Bodies
Norco College
Navy Base