TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, DIRECTOR OF PUBLIC WORKS
SUBJECT
title
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 12766 Pipeline Avenue within the City of Chino’s Sphere of Influence.
end
RECOMMENDATION
1) Adopt Resolution No. 2025-047 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 12766 Pipeline 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.
body
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 and water systems, the following fees will apply:
• Sewer and Water Development Impact Fees (DIF): These one-time fees are 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.
• IEUA Water Connection Fee: one-time fee for a new or upsized water meter connection to a water distribution system within the IEUA service area.
In addition to one-time fees, property owners will be billed monthly for ongoing sewer and water service:
• Sewer Maintenance Fee (City)
• Wastewater Treatment Fee (pass-through to IEUA)
• Water Service Rates (City)
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
|
Revenue: Click or tap here to enter text. |
Expenditure: |
|
Transfer In: Click or tap here to enter text. |
Transfer Out: Click or tap here to enter text. |
BACKGROUND
The subject property, located at 12766 Pipeline Avenue, lies within the City of Chino’s Sphere of Influence (SOI) and is contiguous to the City boundary, but remains under the jurisdiction of San Bernardino County. The property is developed with an existing single-family residence currently served by a septic system. The property owner is proposing to construct a new primary residence and convert the existing structure into an Accessory Dwelling Unit (ADU).
City staff evaluated the availability of utility infrastructure and confirmed that both water and sewer service can be provided to the property via existing 8-inch mains located in Pipeline Avenue. These facilities are adequate to support the proposed new primary residence. The existing structure, which is being converted into an ADU, will remain on a septic system at this time due to financial constraints; however, the property owner has expressed interest in connecting the ADU to the public sewer system in the future.
At the time of the request, the City was operating under Resolution No. 2022-041, the previous Sanitary Sewer Policy. Under that policy, City staff determined that annexation was not practical, as the cost and administrative burden would have been prohibitive for a single property owner. Accordingly, staff issued an Ability to Serve Letter on November 7, 2024, consistent with the provisions in effect at the time.
Subsequently, the City Council adopted Resolution No. 2025-021, which supersedes the prior policy and establishes updated criteria for evaluating sewer and water service requests within the SOI. When reevaluated under the new policy, this request continues to meet the applicable requirements for service under Section 1, which governs properties within the SOI. The project is classified as a non-sizable development, is consistent with the General Plan and zoning designations, and satisfies all criteria for utility connection.
Per the provisions of the new policy, a recommendation from the Infrastructure Streets Committee was not required for this request, and staff are authorized to bring the service application directly to the City Council for consideration.
Although the new policy encourages ADUs to connect to the public sewer system, the City acknowledges that such a connection is not mandatory in this case, pursuant to applicable State housing laws. Due to financial constraints, the property owner has opted to retain the existing septic system for the ADU for the time being. However, City staff is recommending connection to the public system in the future when feasible.
ISSUES/ANALYSIS
The Local Agency Formation Commission (LAFCO) for San Bernardino County would likely require annexation of a larger area beyond the subject property to establish a logical and cohesive service boundary. However, coordinating such a broader annexation effort would place an unreasonable administrative and financial burden on a single property owner. The cumulative cost of LAFCO application fees, along with associated City, County, and construction-related expenses, would render annexation cost-prohibitive for the applicant at this time.
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. 2025-047, 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.
Attachments:
Draft Resolution No. 2025-047
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 November 7, 2024)
City Sanitary Sewer Policy - Resolution No. 2025-021