FOR: Water Subcommittee Meeting [March 27, 2024]
TO: Honorable Water Subcommittee Members
APPROVAL: Stephen Dopudja, P.E., Interim Utilities Manager
Nicole Hemmans, Senior Administrative Analyst
Title
Extraterritorial Wastewater Service Agreement.
RECOMMENDATION
Request that the Water Subcommittee provide feedback on a proposed Extraterritorial Wastewater Service Agreement with Avila Collection, LLC for the property located at 10719 Linden Avenue and 10598 Orchard Street, Bloomington, CA, Assessor’s Parcel Number 0257-021-28 and 0257-031-35.
Body
BACKGROUND
Avila Collection, LLC, a California Limited Liability Company, is planning to construct an 181-unit Townhome project encompassing 12.87 acres of vacant land in the Bloomington Area. The 181 attached units will range from 1200-1860 square feet with 8 affordable homes in the community. The project is located just west of Cedar Avenue and north of Santa Ana Avenue, Bloomington, CA., and will connect to the Santa Ana interceptor just west of Cedar Avenue. The project would construct a private sewer system and would connect to the Santa Ana interceptor through a private road heading south from the project to Santa Ana. It is proposed to add 27,150 gallons per day (gpd) to the City of Rialto (City)/Rialto Utility Authority (RUA)’s wastewater treatment plant capacity. Dopudja Wells Consulting confirmed that there is no issue in allowing this project to connect to the City/RUA’s wastewater system. A copy of the site plan (ATTACHMENT 1), sewer plan (ATTACHMENT 2), and site map (ATTACHMENT 3) are attached to this report.
ANALYSIS/DISCUSSION
The closest connection point to the City/RUA’s sewer system is on Santa Ana Avenue between Linden Avenue and Cedar Avenue. The onsite sewer for the project will be privately managed, maintained, and replaced by the governing Homeowners Association (HOA) for the project. A private sewer main will run along the east side of the property line then 40 linear feet will run down Santa Ana Avenue to connect to the City/RUA’s existing 8-inch sewer main at Larch Avenue and Santa Ana Avenue.
It should be noted that an Extraterritorial Service Agreement is required to be approved by the City Council/Rialto Utility Authority Board and the Local Agency Formation Commission (LAFCO) before project construction. There are no costs to the City/RUA to construct this project.
FINANCIAL IMPACT
To connect to the City/RUA’s wastewater system, the owner will be required to make a one-time development impact fee (DIF) payment at the Extraterritorial Rate of 1.3 times the standard rate. The required connection fees are determined by the planned use of the facility and are approximately $604,536 for both Wastewater Collection and Treatment fees. The calculations are shown in Table 1 below.
Operating Budget Impact
Rialto Water Services (RWS) will bill the property owner for service at 1.3 times the standard applicable sewer rate. The RWS-Veolia will absorb the operating costs to serve the property, within the scope of the Concession Agreement.
Capital Improvement Budget Impact
The sewer DIF fund will have an increased revenue of approximately $604,536 that can be used to fund capital improvement projects caused by development activity and cannot be used to fund existing sewer deficiencies. This project will bring the existing sewer DIF fund account to approximately $8 million.