TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS
SUBJECT
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Out-of-Boundary Service Agreement between the City of Chino and the City of Chino Hills for the Provision of Sewer Service to the Property Located at 14800 Ramona Avenue, Chino Hills.
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RECOMMENDATION
recommendation
Approve the Out-of-Boundary Service Agreement between the City of Chino and the City of Chino Hills for the provision of sewer service to the property located at 14800 Ramona Avenue, Chino Hills; and authorize the City Manager to execute the necessary documents on behalf of the City.
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FISCAL IMPACT
The property owner will be required to pay the City’s Sewer Service Charge, the Sewer Facilities Development Fee (a pass-through fee to the Inland Empire Utilities Agency), and Sewer Development Impact Fees as applicable.
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
• Public Service Excellence through Internal and External Partnerships
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Revenue: |
Expenditure: VARIOUS FEE ACCOUNTS/FUNDS 520-530-540-550 |
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BACKGROUND
In January 2024, the City of Chino Hills (“Chino Hills”) approved the development and operation of an automated car wash facility located at 14800 Ramona Avenue, at the southwest corner of Ramona Avenue and Chino Hills Parkway (see Exhibit A).
The nearest sewer line within Chino Hills is approximately 1,200 feet from the project site. Extending a sewer connection to this line would require construction within the Caltrans right-of-way along State Route 71, leading to significant costs and logistical challenges for the new business. As a result, the property owner has requested sewer service from the City of Chino (“Chino”), which operates an existing 10-inch sewer line in Chino Hills Parkway, situated within 200 feet of the proposed development site (see Exhibit B).
Chino issued a Will Serve Letter to the property owner for the proposed project. In response, the property owner conducted a sewer study to evaluate the capacity of downstream facilities to accommodate the additional wastewater flows generated by the project, as well as potential future connections from adjacent properties, including the future development of the north east corner of Ramona Avenue and Chino Hills Parkway. After reviewing the study, Chino staff determined that there is adequate capacity to service the proposed project.
The property owner will be responsible for obtaining all necessary permits and approvals for the installation of the sewer lateral within the public right-of-way. Additionally, the property owner will incur all associated costs for permits, construction fees, and ongoing service charges linked to the sewer connection.
ISSUES/ANALYSIS
Pursuant to the Government Code, the cities of Chino Hills and Chino must enter into an agreement for out-of-boundary service. Since both cities provide water service, this arrangement is classified as a substitution of services, qualifying for an exemption from the service contract requirements under specific circumstances. Approval from the Local Agency Formation Commission (LAFCO) is required to formalize this exemption.
The process for requesting an exemption from LAFCO is as follows:
• Both cities must coordinate to secure approval from their respective City Councils for the agreement.
• A check payable to San Bernardino LAFCO for $2,750 is required for the exemption request, which will be offset by the property owner.
• Chino Hills will submit a letter to LAFCO requesting the exemption.
It is important to note that LAFCO does not require environmental documents related to the car wash development for this exemption request.
Once the business is operational, Chino Hills will provide monthly water consumption data to Chino, based on meter readings, to assist in calculating the monthly sewer service fees. These charges will be billed directly to the property owner. The City of Chino stands to benefit from the monthly sewer fees and recycled water credits by having the proposed business as a sewer customer. These types of agreements are typical between Chino and Chino Hills as partners within the Chino Valley. The City of Chino Hills currently serves approximately 170 Chino households which includes the Chino Hills Plaza located along Pipeline Avenue, west of State Route 71.
Staff recommends that the City Council approve the agreement between Chino and Chino Hills to provide sewer service for the proposed car wash development at the southwest corner of Ramona Avenue and Chino Hills Parkway.
Attachments:
Exhibit A - Project Location Map
Exhibit B - Sewer Index Map
Exhibit C - Agreement between the City of Chino and the City of Chino Hills for Sewer Service