TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, DIRECTOR OF PUBLIC WORKS
SUBJECT
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Conditional Approval of a Covenant Agreement to Annex for Sanitary Sewer Service and request approval from the San Bernardino Local Agency Formation Commission (LAFCO) for sanitary sewer service for the property located at 3910 Chino Avenue for a proposed single-family home and Accessory Dwelling Unit (ADU) located within the City of Chino’s Sphere of Influence.
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RECOMMENDATION
1) Adopt Resolution No. 2026-024 conditionally approving a Covenant Agreement to Annex for Sanitary Sewer; 2) request approval from the San Bernardino Local Agency Formation Commission for sanitary sewer service for the property located at 3910 Chino Avenue within the City of Chino's Sphere of Influence; and 3) authorize the City Manager to execute all 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 burdened by the applicant. Upon connection to the public sewer, the following fees will apply:
• Sewer Development Impact Fee (DIF): This one-time fee is 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.
In addition to one-time fees, property owners will be billed monthly for ongoing sewer service:
• Sewer Maintenance Fee (City)
• Wastewater Treatment Fee (pass-through to IEUA)
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:
• Responsible Long-Range Planning
• Positive City Image
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BACKGROUND
The subject property, located at 3910 Chino Avenue, is situated within the unincorporated area of San Bernardino County and within the City of Chino’s Sphere of Influence (SOI). The property has a General Plan land use designation of Residential RD 2 (1-2 dwelling units per acre). The site is contiguous to the City’s corporate boundaries and is currently a vacant parcel proposed for development with a single-family residence and an Accessory Dwelling Unit (ADU).
The property owner has submitted a development application to the County of San Bernardino for the proposed project. As part of this request, the property owner is seeking to connect the future single-family residence, and ultimately the proposed ADU, to the City’s public sanitary sewer system.
City staff evaluated service availability and confirmed that connection can be provided via an existing 8-inch sewer main in Roswell Avenue. This facility is adequate to serve both the residence and the proposed ADU.
In 2025, the City Council adopted Resolution No. 2025-021, updating the Sewer Connection Policy and establishing revised criteria for requests within the SOI. Pursuant to this policy, staff evaluated the subject request and determined that annexation, while technically feasible given the property’s contiguity to the City boundary, is not practical due to the disproportionate cost associated with annexation for a single property owner.
Accordingly, an Ability to Serve Letter was issued on March 2, 2026. The current request qualifies under Section 1 of the policy, which applies to properties within the SOI. The proposed development is considered non-sizable, is consistent with the applicable General Plan land use and zoning designation and meets all criteria for connection to the City’s public sanitary sewer system.
Pursuant to the current policy, a recommendation from the Infrastructure and Streets Committee is not required for this type of request. Therefore, staff is authorized to present the application directly to the City Council for consideration.
ISSUES/ANALYSIS
The San Bernardino County Local Agency Formation Commission (LAFCO) would likely require annexation of a broader area beyond the subject property in order to establish a logical and cohesive service boundary. However, coordinating such an annexation effort would impose an unreasonable administrative and financial burden on a single property owner. The combined cost of LAFCO application fees, together with associated City, County, and construction-related costs, renders annexation cost-prohibitive for the applicant at this time.
Consistent with the City’s adopted policy, the property owner will instead execute an Irrevocable Agreement to Annex (attached to the Resolution as Exhibit B), which commits the property to annex into the City of Chino at a future date when a broader annexation becomes feasible.
Upon adoption of Resolution No. 2026-024, the City Manager will be authorized to execute and submit a LAFCO Application for Extension of Services by Contract (attached as Exhibit A). Approval of the Irrevocable Agreement to Annex is contingent upon the following:
1. LAFCO approval of the City’s request to extend sanitary sewer service by contract; and
2. Full reimbursement by the applicant for all costs incurred by the City in the preparation, submittal, and processing of the LAFCO application.
The City Manager shall be authorized to execute the Irrevocable Agreement to Annex on behalf of the City only upon receipt of written confirmation from LAFCO that the service extension request has been approved. If LAFCO denies the request, or if the applicant fails to fully reimburse the City, the agreement shall not be executed and sanitary sewer service shall not be extended.
Attachments:
Resolution No. 2026-024
Exhibit A - LAFCO Application for Extension of Services by Contract
Exhibit B - Irrevocable Agreement to Annex
Exhibit C - Sewer Lateral Map
Ability to Serve Letter (dated March 2, 2026)
City Sanitary Sewer Policy - Resolution No. 2025-021