TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS
SUBJECT
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Sewer Policy for the Sphere of Influence and Out-of-Boundary Service Agreements Evaluation.
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RECOMMENDATION
recommendation
This study session will provide an overview of the City’s current Sewer Policy for the Sphere of Influence, including the process for evaluating Out-of-Boundary Service Agreements. Additionally, proposed policy changes will be discussed. No formal action is required.
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FISCAL IMPACT
There is no direct fiscal impact to the City.
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
• Superior Customer Service
• Responsible Long-Range Planning
• Exemplary Leadership
• 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’s approach to sewer connections and annexation has evolved through various policy amendments 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 has found that sewer connection requests often present unique circumstances, requiring a structured yet adaptable approach to decision-making.
ISSUES/ANALYSIS
On February 25, 2025, staff presented an item to the Infrastructure/Streets Committee reviewing the City’s existing Sewer Policy. The discussion highlighted challenges in applying the current policy and proposed amendments to improve clarity and flexibility.
The Committee also examined Out-of-Boundary Agreements for water and sewer service with neighboring cities. While the City does not currently have a formal policy governing these agreements, they are evaluated using similar criteria as SOI sewer connections focusing on feasibility, infrastructure capacity, and public benefit. Unlike SOI connections, Out-of-Boundary Agreements are not subject to General Plan or Zoning Code compliance. Moving forward, the City aims to establish clear guidelines while maintaining discretion in service provision.
To create a more structured and comprehensive approach, staff recommends replacing the existing policy with an updated framework that integrates SOI Sewer Connections and Out-of-Boundary Service Agreements into a single, streamlined policy. The Infrastructure/Streets Committee supports this recommendation.
The proposed policy includes the following key elements:
SOI Sewer Connections
• Case-by-Case Review - Each request will undergo an individual assessment to determine feasibility and service implications.
• City Discretion for Infeasibility Determinations - The City retains the right to deny connections based on feasibility constraints.
• General Plan and Zoning Compliance Deviations - Flexibility will be considered when appropriate.
• Requirements for Larger Developments - Additional conditions may apply for substantial projects within the SOI.
Out-of-Boundary Service Agreements (Water & Sewer Service Connections)
• Case-by-Case Review - Requests will be evaluated individually.
• Service Feasibility Analysis - Each request must demonstrate infrastructure capacity and service feasibility.
• Public Benefit Considerations - The broader benefits to the community will be assessed along with economic considerations.
• Infrastructure Committee Oversight - The Committee will provide guidance on approvals.
• Cost Participation/Fair-Share Contributions - Applicants will be required to contribute their fair share of infrastructure costs.
This revised policy framework will ensure a consistent, equitable, and transparent approach to evaluating sewer connections and service agreements while allowing for necessary discretion based on unique project circumstances.
Attachment - Proposed Policy (draft)