For City Council and Rialto Utility Authority Meeting [June 13, 2023]
TO: Honorable Mayor and City Council
APPROVAL: Arron Brown, Acting City Manager
FROM: Thomas J. Crowley, P.E., Utilities Manager
Title
Request City Council/Rialto Utility Authority Board Adopt City Council Resolution No. 8085 and Rialto Utility Authority Board RUA Resolution No. 04-23 Approving an Extraterritorial Wastewater Service Agreement with Shorecliff Capital, LLC, for the property located at northeast corner of Cedar Avenue and San Bernardino Avenue, Bloomington, CA, Assessor’s Parcel Number 0250-101-76-0000.
Body
BACKGROUND
Shorecliff Capital, LLC, a California Limited Liability Company, is planning to develop the property located at the northeast corner of Cedar Avenue and San Bernardino Avenue in Bloomington, CA, Assessor’s Parcel Number is 0250-101-76-0000. Shorecliff Capital is developing a proposed gas station, convenience store, drive thru restaurant, car wash, and professional offices at this location. A copy of a project location map and site plan showing the property is included as Attachment 1
The City of Rialto owns, operates, and maintains the local public sanitary sewer system, which includes a wastewater collection system and treatment plant that serve most properties within the City limits and some areas of Bloomington. The property is not served by another sewer system and Shorecliff Capital has requested to connect to the Rialto wastewater system.
Under Title 12, Chapter 12.08 of the City of Rialto Municipal Code governing Public Utilities, the City Council established fees for connections to the City utility systems outside the City limits. Extraterritorial sewer fees were established at 1.3 times the rates for City wastewater customers in accordance with Resolution No. 6209 which was adopted by Council on January 8, 2013. Therefore, in accordance with the City Council policies established by Resolutions No. 4746 and 6209, City Council approval of extraterritorial sewer service is required.
ANALYSIS/DISCUSSION
The closets connection point to the Rialto wastewater system is at the intersection of Larch and San Bernardino Avenues. To connect, the developer will be required to extend an 8-inch sewer line easterly to the intersection of Cedar and San Bernardino Avenues, approximately 1,200 linear feet. The existing City’s sewer collection system and the wastewater treatment plant have sufficient capacity to accept the proposed sewer connection for the proposed project.
In order to connect to the Rialto wastewater system, the owner will be responsible for the design and construction of a sewer line at their expense. This includes, but is not limited to, ensuring the work meets current Building and Plumbing Codes, obtaining all permits and inspections required by the City and San Bernardino County, and making all repairs to the infrastructure damaged during construction and when accessing sewer lines.
In addition to the new sewer line, the Owner will owe the City development impact fees for the sewage treatment and collection systems at a rate equal to one point three (1.3) times the current sewage rate or charges. Rialto sewage treatment fees (for treatment of the wastewater at the treatment plant) vary.
Staff has prepared an Extraterritorial Wastewater Service Agreement to facilitate approval of the proposed service connection. This agreement describes the duties and responsibilities of the City, and the property owner. There are no costs to the City to construct this project. It should be noted that an Extraterritorial Service Agreement is required to be approved by the City Council and the Local Area Formation Commission prior to the project being completed. The proposed Extraterritorial Agreement is included as Attachment 2.
This item was presented to the Water Subcommittee (Mayor Robertson / Councilperson Scott) at the January 25, 2023, and the Utilities Commission on May 16, 2023. The Water Subcommittee and Utilities Commission recommends the City Council, and the Rialto Utility Authority approved the Extraterritorial Wastewater Service Agreement with Shorecliff Capital.
ENVIRONMENTAL IMPACT
The request is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. The proposed agreements to connect the properties to the City’s sanitary sewer system will not result in a direct or indirect physical change in the environment because the system has sufficient capacity and, as such, the action is not a “Project” as defined under CEQA.
GENERAL PLAN CONSISTENCY
Approval of the proposed action complies with the following City Guiding Principle:
Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
Approval of the proposed action also complies with the following General Plan Policies:
Policy 3-6.1: Coordinate all development proposals with other affected public entities to ensure the provision of adequate public facilities and infrastructure services.
Policy 3-9.1: Require that all new development or expansion of existing facilities bear the cost of expanding the wastewater disposal system to handle the increased loads which they are expected to generate.
LEGAL REVIEW
The City Attorney has reviewed and supports the staff report, resolutions, and agreement.
FINANCIAL IMPACT
In order to connect to the Rialto wastewater system, the developer will be required to make a one-time Development Impact Fee 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 estimated at $119,645.85 for both Wastewater Collection and Treatment fees. The calculations are shown in Table 1 below.
Table 1
Operating Budget Impact
Rialto Water Services will bill the property owner at the subject property at 1.3 times the standard applicable sewer rate and the Utility Authority will absorb the operating costs to serve the property, within the Concession Agreement.
Capital Improvement Budget Impact
The requested action is expected to increase the Sewer Treatment Fund by $96,280.95
and the Sewer Collection Fund by $23,364.90 to be used on Development Impact Fee eligible projects.
Licensing
A business license is not required for the requested action.
RECOMMENDATION
Staff recommends that the City Council and Rialto Utility Authority Board:
1. Adopt Resolutions approving an Extraterritorial Wastewater Service Agreement with Shorecliff Capital, LLC for the property located at northeast corner of Cedar Avenue and San Bernardino Avenue, Bloomington, CA, Assessor’s Parcel Number 0250-101-76-0000.
2. Authorize the Acting City Manager to execute all documents.