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 13140 Roswell Avenue (new Accessory Dwelling Unit and primary residence) within the City of Chino’s Sphere of Influence.
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RECOMMENDATION
1) Adopt Resolution No. 2025-063 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 13140 Roswell 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 reimbursed 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 13140 Roswell Avenue, lies within the unincorporated area of San Bernardino County in the City of Chino’s Sphere of Influence (SOI) and has a General Plan land use designation of Residential RD 4.5 (3-4.5 du/acre). The property is not contiguous to the City boundary and is currently developed with a single-family residence served by an on-site septic system. The owner proposes to construct an Accessory Dwelling Unit (ADU) and has requested to connect both the existing residence and the proposed ADU to the public sewer system.
City staff evaluated the availability of public sewer and confirmed that service can be provided via an existing 8-inch sewer main located in Roswell Avenue. This facility is adequate to accommodate both the existing residence and the proposed ADU.
At the time the request was submitted, the City was operating under Resolution No. 2022-041 (the prior Sanitary Sewer Policy). Under that policy, staff determined that annexation was not practical given the property’s non-contiguous location to the City boundary and the disproportionate cost and administrative burden for a single property owner. Accordingly, staff issued an Ability to Serve Letter on May 16, 2025, consistent with the provisions in effect at that time.
Subsequently, the City Council adopted Resolution No. 2025-021, which superseded the previous policy and established updated criteria for evaluating sewer service requests within the SOI. Upon reevaluation under the new policy, staff determined that this request continues to meet the applicable requirements for service under Section 1. Properties within the Shere of Influence (SOI), which governs properties located within the SOI. The project qualifies as a non-sizable development, is consistent with the City’s General Plan and zoning designations, and satisfies all criteria for utility connection.
In accordance with the provisions of the current policy, a recommendation from the Infrastructure and Streets Committee was not required for this request. Staff is therefore authorized to present the service 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 to establish a logical and cohesive service boundary. However, coordinating such an annexation effort would place an unreasonable administrative and financial burden on a single property owner. The combined cost of LAFCO application fees, along with City, County, and construction-related expenses, renders annexation cost-prohibitive for the applicant currently.
In accordance with adopted City Council policy, the property owner will instead execute an Irrevocable Agreement to Annex (attached to the Resolution as Exhibit B), committing the property to annex into the City of Chino at a future date when broader annexation becomes feasible.
With adoption of Resolution No. 2025-063, 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 two conditions:
1. LAFCO approval of the City's service extension request, 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 agreement on behalf of the City only after receiving written confirmation from LAFCO that the service extension request has been approved. If LAFCO denies the request, or if the applicant fails to reimburse the City in full, the agreement will not be executed, and utility service will not be extended.
It should be noted that properties with open code violations will not be permitted to connect to the public sewer system. Any such violations must be fully resolved, and staff will verify compliance prior to the issuance of a right-of-way permit for sewer connection.
Attachments:
Resolution No. 2025-063
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 May 16, 2025)
City Sanitary Sewer Policy – Resolution No. 2025-021