TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS
SUBJECT
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Ability to Serve Letter and Out-of-Boundary Service Agreement for the provision of water and sewer service to the property located at 14901 Monte Vista Avenue, Chino Hills.
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RECOMMENDATION
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1) Approve the issuance of an Ability to Serve Letter to the property located at 14901 Monte Vista Avenue, Chino Hills, subject to applicable City conditions and requirements; 2) Approve the Out-of-Boundary Service Agreement between the City of Chino and City of Chino Hills for the provision of water and sewer service to the subject property; and 3) authorize the City Manager to execute the necessary documents on behalf of the City.
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FISCAL IMPACT
There is no direct fiscal impact to the City’s General Fund. All costs associated with utility connections, plan check, and LAFCO processing will be fully reimbursed by the applicant. Upon connection to the public sewer and water systems, the following fees will apply:
• Sewer and Water Development Impact Fees (DIF): These one-time fees are assessed for all new connections to the City’s sewer system.
• Inland Empire Utilities Agency (IEUA) Sewage Facilities Development Fee (SFDF): one-time fee for a new sewer connection within the IEUA service area.
• IEUA Water Connection Fee: one-time fee for a new or upsized water meter connection to a water distribution system within the IEUA service area.
In addition to one-time fees, property owners will be billed monthly for ongoing sewer and water service:
• Sewer Maintenance Fee (City)
• Wastewater Treatment Fee (pass-through to IEUA)
• Water Service Rates (City)
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above further 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
• Superior Customer Service
• Public Service Excellence through Internal and External Partnerships
BACKGROUND
On June 3, 2025, the City Council approved a revised policy governing utility connection for properties located within the City of Chino’s Sphere of Influence and Out-of-Boundary Service areas. This policy applies to parcels adjacent to the Chino city limits, including areas within the Cities of Chino Hills, Ontario, and Montclair. Under the revised policy, the Infrastructure Committee reviews proposed utility connections and may recommend that an “Ability to Serve” Letter and Out-of-Boundary service agreements be forwarded to the City Council for consideration.
In accordance with Government Code requirements, Out-of-Boundary utility service agreements between cities must also comply with applicable Local Agency Formation Commission (LAFCO) regulations. Because both the City of Chino and the City of Chino Hills are municipal water providers, these types of cross-jurisdictional arrangements are typically classified as a substitution of services, which may qualify for an exemption from the standard LAFCO contract approval process. However, formal exemption approval from San Bernardino LAFCO is still required and must be jointly pursued by both cities.
The William Warren Group (developer) is proposing a new development at 14901 Monte Vista Avenue, located at the southeast corner of Chino Hills Parkway and Monte Vista Avenue within the City of Chino Hills. The project entails the construction of a four-story, indoor self-storage facility, totaling approximately 62,950 square feet of leasable space across 741 units. The project site is currently a vacant parcel (Exhibit A).
ISSUES/ANALYSIS
The developer is requesting to connect to the City of Chino’s water and sewer systems due to the proximity and feasibility of Chino’s existing infrastructure.
For water service, the nearest potable water main maintained by the City of Chino Hills is approximately 900 feet south of the project site, at Monte Vista Avenue and Fairfield Ranch Road. Conversely, the City of Chino operates a water main running along Chino Hills Parkway, directly adjacent to the development site. Extending a water line south to reach Chino Hills infrastructure has been deemed financially unviable by the developer, prompting the request to connect to Chino’s system.
A similar situation exists for sewer service. Chino Hills’ closest sewer main is also located at Monte Vista Avenue and Fairfield Ranch Road, while Chino maintains a sewer main running directly along Monte Vista Avenue, adjacent to the project site. For efficiency and cost-effectiveness, the developer is requesting to tie into Chino’s sewer line.
The proposed self-storage facility is expected to have a minimal impact on Chino’s utility systems. The building will include only four restrooms, and water usage is anticipated to be low. Landscape irrigation needs will be met through a separate recycled water connection to an Inland Empire Utilities Agency (IEUA) main on Monte Vista Avenue. Correspondingly, sewer flows are also anticipated to be low, given the minimal water consumption associated with the facility.
The project would offer community benefits to the City of Chino. The City will receive one-time development impact fees, and cost-recovery fees for plan check, permitting, and inspection services associated with the project. Although the anticipated utility usage is relatively low, the project will still provide a consistent source of monthly service charges to the City.
As part of the request, the developer has also agreed to provide community benefits to the City of Chino by including public infrastructure improvements at the intersection of Monte Vista Avenue and Chino Hills Parkway east of the Chino Creek Channel (Exhibit B). These improvements will include the replacement of non-compliant curb ramps on the north side, adjustment of pedestrian push buttons and crosswalk striping, installation of a new ADA-compliant ramp on the south side, and potentially relocating the pedestrian button. Additionally, new sidewalk will be constructed to close an existing pedestrian access gap on the south side of Chino Hills Parkway, between the drainage channel and approximately 100 feet east of the intersection. As part of these improvements, the developer will also modify the existing striping and traffic signal loops at the intersection to enhance maneuvering space for vehicles making turning movements.
Regarding potential impacts to local businesses, the developer completed a survey of nearby storage facilities and identified six existing competitors in the area. The nearest facility, “A Storage Place”, is approximately 1.2 miles away near Dupont Avenue and El Prado Road. The proposed facility is expected to primarily serve residents of Chino Hills west of the 71 Freeway, rather than competing directly with existing businesses in Chino. The developer also noted that the new facility would offer indoor, climate-controlled storage units, which are not commonly available in Chino, where many facilities feature drive-up, non-climate-controlled units.
The proposed development and utility connection requests were presented to the Infrastructure Streets Committee on March 31 and June 24, 2025. Following review, the Committee recommended that the proposal move forward for City Council consideration. Based on this recommendation, City staff supports approval of an Ability to Serve Letter and an Out-of-Boundary Service Agreement for water and sewer connections to the proposed development at 14901 Monte Vista Avenue in the City of Chino Hills.
If the City Council approves the issuance of the Ability to Serve Letter and approval of the Out-of-Boundary Utility Service Agreement, the City of Chino Hills will take corresponding action to approve and execute the agreement. Upon full execution by both agencies, a request for exemption from formal contract approval will be submitted to LAFCO by the City of Chino Hills in accordance with Government Code Section 56133(e). As stated earlier, The proposed utility arrangement qualifies as a substitution of services between two municipal water providers and, therefore, is eligible for exemption from LAFCO’s standard review process. Additionally, LAFCO has confirmed that environmental documentation under CEQA is not required for exemption consideration in this case.
Attachments:
• Exhibit A - Location Map
• Exhibit B - Community Benefits
• Exhibit C - Ability to Serve Letter
• Exhibit D - Out-of-Boundary Service Agreement