TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS
SUBJECT
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Amendment No. 1 to the Sewer and Storm Drain Agreement Between the Cities of Chino and Ontario.
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RECOMMENDATION
Approve Amendment No. 1 to the Sewer and Storm Drain Agreement between the Cities of Chino and Ontario; and authorize the City Manager to execute all necessary documents on behalf of the City.
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FISCAL IMPACT
The proposed Amendment No. 1 does not modify the financial terms of the existing agreement between the Cities of Chino and Ontario. Developers and/or property owners remain responsible for all applicable sewer and storm drain fees. Therefore, there is no direct fiscal impact to either City, and no impact to the City's General Fund.
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
• Public Service Excellence through Internal and External Partnerships
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BACKGROUND
On December 1, 1981, the Cities of Chino and Ontario entered into a 50-year sewer agreement allowing the use of existing sewer infrastructure to provide service to designated areas outside their respective jurisdictional boundaries. The agreement established the terms and conditions under which one city could utilize the other city's sewer facilities, including applicable service fees and responsibilities.
On August 18, 2009, the agreement was amended and restated to include storm drain facilities and additional sewer service areas. The revised agreement established a framework for the mutual use of existing sewer and storm drain infrastructure to serve properties located within or adjacent to the Cities' boundaries where connections to the neighboring city's infrastructure were more practical.
Since the 2009 amendment, continued development within both cities has created additional opportunities to utilize existing infrastructure to provide sewer service to properties near their shared boundaries.
The Cities have identified two additional areas within Chino that would benefit from receiving sewer service through Ontario's existing sewer system. The proposed Amendment No. 1 would incorporate these areas into the existing agreement without modifying the previously established service areas or financial terms.
On October 13, 2026, staff presented the proposed amendment to the Infrastructure Committee. The Committee supported staff’s recommendation to advance the amendment to the City Council for consideration and approval.
ISSUES/ANALYSIS
Proposed Amendment No. 1 would establish two additional Sewer Special Service Areas (SSSAs) within the City of Chino, allowing properties within these areas to connect to the City of Ontario’s existing sewer infrastructure, as shown in Exhibit A.
Benson Temple Project
Sewer Special Service Area No. 2 (SSSA No. 2)
The first proposed service area is located at 11910 Benson Avenue, north of Philadelphia Street, and includes the Benson Temple Project and adjacent properties designated for future residential development.
The Benson Temple Project was approved by the Planning Commission on November 20, 2024, and is currently progressing through the final engineering and subdivision improvement agreement process.
Providing sewer service through the City of Chino's existing infrastructure presents several challenges. The Benson Avenue corridor is heavily congested with underground utilities, leaving limited space for additional infrastructure. Furthermore, the limited remaining development potential in the area is insufficient to economically justify the construction of a new sewer main. Existing and projected wastewater flows are also inadequate to support the feasibility of a new gravity sewer system.
The City of Ontario has existing sewer infrastructure near the project site with sufficient capacity to accommodate the proposed connections. Establishing SSSA No. 2 would provide a feasible sewer service alternative while eliminating the need for unnecessary infrastructure improvements.
State Street Water Treatment Facility
Sewer Special Service Area No. 3 (SSSA No. 3)
The second proposed service area is located at the City-owned State Street Water Treatment Facility, west of Benson Avenue between Mission Boulevard and State Street.
The City is currently constructing improvements at the facility that include a breakroom and restrooms requiring sewer service.
Due to the facility's proximity to Ontario's existing sewer infrastructure, connecting to Ontario's sewer system provides a practical alternative to extending Chino's sewer infrastructure to serve the site.
The proposed amendment would designate the facility as SSSA No. 3 and authorize sewer service through Ontario's existing system.
Consistent with the City's sewer service policy, staff evaluated the proposed service areas and determined that connecting to Ontario's existing sewer system is a feasible alternative, as no other practical sewer service options are available.
The Cities prepared a sewer hydraulic analysis, which confirmed that Ontario's existing downstream sewer system has sufficient capacity to accommodate the anticipated wastewater flows from both service areas without creating capacity deficiencies or requiring additional sewer improvements. The hydraulic analysis and proposed agreement language were also provided to the Inland Empire Utilities Agency (IEUA) Technical Advisory Committee as an informational item.
Based on these findings, the proposed Amendment No. 1 would formally incorporate the two additional sewer service areas into the existing Sewer and Storm Drain Agreement. The amendment would allow the City of Chino to utilize Ontario's existing sewer infrastructure to serve the identified properties while maintaining the current financial provisions, previously approved service areas, and established terms of the agreement.
Following approval by both City Councils, the amendment will be submitted to the San Bernardino County Local Agency Formation Commission (LAFCO) for the applicable exemption determination.
Attachments - Amendment No. 1
Exhibit A