TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS
SUBJECT
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Approve a new policy for Utility Connections for the Sphere of Influence and Out-of-Boundary Service Agreements.
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RECOMMENDATION
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1) Adopt Resolution No. 2025-021, superseding Resolution No. 2022-041 and amending the Sanitary Sewer Policy to establish criteria for sewer and water service requests within the City’s Sphere of Influence and Out-of-Boundary service areas; and 2) authorize the City Manager to execute all necessary documents on behalf of the City.
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FISCAL IMPACT
There is no direct fiscal impact to the City associated with the adoption of this resolution.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above furthers the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Positive City Image
• Public Service Excellence through Internal and External Partnerships
BACKGROUND
The Sphere of Influence (SOI) is a planning boundary established by the Local Agency Formation Commission (LAFCO) to define areas where the City is expected to extend its influence over land use, public services, and future development. Within the SOI, the City of Chino serves as the sole sewer service provider.
Over the years, the City has amended its policies on sewer connections and annexation within the SOI to balance long-term planning objectives with property owners’ needs:
• Resolution No. 2006-028 - Allowed sewer connections without annexation, provided property owners executed an Irrevocable Agreement to Annex.
• Resolution No. 2018-009 - Required mandatory annexation for all sewer connections, with no exceptions.
• Resolution No. 2020-060 - Reinstated the option for sewer connections without annexation, subject to an Irrevocable Agreement to Annex.
• Resolution No. 2022-041 - Introduced greater flexibility for accessory dwelling units (ADUs).
While these resolutions establish a policy framework, staff have found that sewer connection requests often present unique circumstances requiring a structured yet adaptable approach to decision-making.
On February 25, 2025, staff presented a review of the City’s current sewer policy to the Infrastructure and Streets Committee. The Committee identified challenges with the existing framework, particularly regarding clarity, consistency, and flexibility. The discussion also addressed the need to formalize the evaluation of Out-of-Boundary Service Agreements with neighboring jurisdictions for sewer and water services.
ISSUES/ANALYSIS
In response to the Committee’s direction and feedback from the City Council Study Session on March 11, 2025, staff developed an updated policy that consolidates the City’s procedures for sewer connections within the SOI and Out-of-Boundary requests for water and sewer service into a single, streamlined framework.
This policy provides objective criteria for staff while preserving discretionary authority for the Infrastructure Committee and City Council. The revised policy supports case-by-case evaluations, ensures public infrastructure feasibility, and protects the City’s economic and operational interests.
Key Policy Elements:
1. Sewer Service Connections - Sphere of Influence (SOI)
• This Policy applies to parcels in the County within City of Chino’s Sphere of Influence.
• Case-by-Case Review: All requests will be individually assessed for feasibility and consistency.
• General Plan & Zoning Compliance: Required unless a deviation is authorized by Council.
• Deviations: Must be reviewed by the Infrastructure Committee before Council action.
• Annexation Requirements:
o Non-Contiguous Parcels: Small projects may connect without annexation but must enter into an Irrevocable Agreement to Annex (Agreement). This Agreement acknowledges the property owner’s willingness to annex the property into the City at a future date in exchange for the extension or provision of sanitary sewer service by the City. By entering into this Agreement, the property owner irrevocably consents to the future annexation of the property into the City when the City determines such annexation to be appropriate and agrees not to contest or oppose said annexation.
o Sizable Projects (e.g., residential projects with more than 4 units or commercial over 10,000 sq. ft.): May be required to annex unless deemed infeasible. Final infeasibility determination rests with Council.
o Contiguous Parcels: Required to annex unless infeasibility is demonstrated.
• ADU Exemption: ADUs are exempt from mandatory sewer connection but are encouraged to connect where feasible. If connection is requested, an Irrevocable Agreement to Annex is still required.
2. Out-of-Boundary Service Agreements (Water & Sewer)
• This Policy applies to parcels adjacent to the City of Chino boundary in Cities of Chino Hills, Ontario and Montclair.
• Extraordinary Measure: Only permitted when no other feasible service alternative exists.
• Feasibility Analysis: Required for all service requests.
• Public Benefit Assessment: Staff will evaluate broader community impacts and economic implications to the City of Chino businesses or residents.
• Committee Oversight: Infrastructure Committee reviews and may recommend issuance of an “Ability to Serve” letter.
• Council Authority: Only the City Council may approve or deny service requests.
• Applicant Obligations:
o Full cost responsibility for connections.
o Contribution to future capacity upgrades as determined.
o Payment of all applicable DIFs and pass-through fees to the Inland Empire Utilities Agency (IEUA).
On May 5, 2025, staff presented the final draft of the proposed policy to the Infrastructure/Streets Committee. The Committee supported staff’s recommendation to move the policy forward for City Council consideration.
Therefore, staff recommends that the City Council approve the Utility Connections Policy governing sewer and water service connections within the City’s SOI and for Out-of-Boundary Service Agreements with neighboring jurisdictions.
Attachments - 1. Existing Sewer Policy - Sphere of Influence (SOI)
2. Resolution 2025-021 - Proposed Utility Connections Policy (Sewer and Water Services for SOI and Out-of-Boundary Agreements)