A. General Plan & Zoning Requirements
Properties within the SOI must conform to the City ’s General Plan land use and zoning requirements to qualify for sewer service connection:
Staff may not independently authorize any deviation from the City ’s General Plan or zoning requirements. All requests for deviations shall first be presented to the Infrastructure Committee for review and recommendation. The Infrastructure Committee may authorize issuance of an “Ability to Serve ” letter; h owever, issuance of such letter shall not constitute approval of the requested deviation or connection. Final approval authority for any deviation and associated sewer connection resides exclusively with the City Council.
B. Annexation Requirements
1. Non-Contiguous Parcels (SOI parcels not adjacent to the City boundary):
a. Non-adjacent properties within the SOI that do not qualify as a Sizable Project as defined herein, may connect to the public sewer system upon execution and recording of an Irrevocable Agreement to Annex. City staff is authorized to issue an “Ability to Serve” letter for such requests, provided the subject property fully complies with all applicable General Plan and zoning requirements. The issuance of an “Ability to Serve” letter by s taff shall not constitute final approval; the ultimate approval authority for sewer connection remains solely with the City Council, contingent upon approval of the formal Irrevocable Agreement to Annex.
b. Non-adjacent properties within the SOI that qualify as a Sizable Projects as defined herein, may connect to the public sewer system upon execution and recording of an Irrevocable Agreement to Annex ; provided annexation into the City is determined to be economically or practically infeasible as defined in Section 2 herein. The Infrastructure Committee must first review and authorize the issuance of an “Ability to Serve” letter contingent upon the project's full compliance with all applicable General Plan and zoning requirements. Authorization an d issuance of such letter by the Infrastructure Committee shall not constitute final approval; ultimate approval authority for sewer connection serving Sizable Projects remains solely with the City Council, contingent upon approval of the Irrevocable Agree ment to Annex.
c. Additionally, in the event a proposed project fails to conform with applicable General Plan or Zoning requirements, such project shall be subject to the provisions set forth in Section 1 of this policy. Furthermore, depending upon the size, scale, and anticipated impacts of the proposed development, the City reserves the right to require annexation into the City, with all associated annexation costs and expenses borne solely by the applicant.
2. Contiguous Parcels (SOI parcels bordering the City boundary)
Contiguous properties within the SOI shall be required to annex into the City to connect to the public sewer system , unless the City determines annexation to be economically or practically infeasible, as defined in Section 2 herein. In cases where annexation is deemed infeasible, connection may be permitted upon execution and recording of an Irrevocable 525
Resolution 2025-021
Agreement to Annex. All provisions and requirements governing sewer connections under an Irrevocable Agreement to Annex, including but not limited to parcel size, project type, compliance with General Plan and zoning requirements, Infrastructure Committee authorization, and final approval by the City Council, as outlined above for non -adjacent properties, shall fully apply.
3. Accessory Dwelling Units (ADUs) Exemption
a) Accessory Dwelling Units (ADUs) located within the SOI shall remain exempt from mandatory connection to the City's public sewer system pursuant to California Government Code Section 65852.2(f)(2), as amended . Notwithstanding this exemption, City staff shall proactively provide property owners requesting an “Ability to Serve” or “Not Serve” letter with comprehensive information regarding available public sewer connection options, particularly in cases where public sewer infrastructure exists adjacent or in close proximity to the subject property. Further, staff shall actively encourage connection to the public sewer system for all structures located on the subject parcel, including but not limited to ADUs and assoc iated single -family residences, wherever connection is determined by the City to be feasible.
b) In cases where an ADU property owner within the SOI voluntarily elects to connect to the public sewer system, City staff is authorized to issue an "Ability to Serve" letter irrespective of compliance with General Plan or zoning requirements. All applicable provisions, requirements, and procedures associated with executing and recording an Irrevocable Agreement to Annex, as outlined in Section 1 of this policy, sha ll fully apply. Issuance of an "Ability to Serve" letter by staff shall not constitute final approval; ultimate authority to approve sewer connections remains solely with the City Council.
4. Sizable Projects
a) "Sizable Projects" shall be defined as new developments or infill projects within the Sphere of Influence (SOI) consisting of more than four (4) residential dwelling units, or commercial and industrial developments exceeding 10,000 square feet of gross floor area. The determination of annexation re quirements for these projects shall consider criteria including, but not limited to, proximity or contiguity to the City boundary, projected impacts on City infrastructure and municipal services, and the type, scope, and overall scale of the proposed development.
b) All "Sizable Projects," as defined herein, shall be subject to review and recommendation by the Infrastructure Committee prior to the issuance of an "Ability to Serve" letter by City staff. The issuance of such letter by staff, following Infrastru cture Committee recommendation, shall not constitute final approval. Final approval authority for all sewer or water connections for Sizable Projects remains solely with the City Council.
SECTION 2. INFEASIBILITY DETERMINATIONS SPHERE OF INFLUENCE (SOI):
The City of Chino expressly reserves the right to determine, in its sole discretion, that annexation is infeasible under any of the following conditions:
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Resolution 2025-021
1. Disproportionate Burden on an Individual Property Owner – Where the proposed annexation would impose an undue financial or procedural obligation on the requesting property owner, rendering the annexation inequitable.
2. Insufficient Support from Adjacent Property Owners – Where there is inadequate participation or concurrence from surrounding parcels neces sary to justify or effectuate the annexation.
3. Infrastructure Deficiencies – Where existing municipal sewer or water infrastructure is inadequate or otherwise incapable of accommodating the proposed annexation.
4. Economic Viability – Where the extension of mu nicipal services to the subject property, absent broader support or financial participation from neighboring parcels, would result in an unsustainable fiscal obligation to the City.
5. Excessive Long-Term Liabilities – Where annexation would create undue or e xcessive ongoing maintenance, operational, or financial burdens on the City, compromising its ability to efficiently manage municipal infrastructure.
City staff shall make the initial determination for infeasibility; however, depending on the nature of the request, the Infrastructure Committee and, ultimately, the City Council shall retain the final authority to determine whether a property is deemed infeasible for annexation into the City as a prerequisite to connecting to the public sewer system.
SECTION 3. OUT-OF-BOUNDARY SERVICE AGREEMENTS
An Out-of-Boundary Service Agreement ("Agreement") is a legally binding instrument between the City of Chino (“City”) and another municipal jurisdiction (“Requesting Municipality”) for the provision of municipal sewer and water services to properties located outside the City's corporate limits and beyond its Sphere of Influence. The extension of such services shall be considered an extraordinary measure and will only be granted when the City Council, at its sole a nd absolute discretion, determines that:
1. No other reasonable or feasible alternative exists for the property to connect to a sewer or water system; and
2. The requested service extension is technically feasible; and
3. The extension will not adversely impact existing or planned infrastructure.
4. The service extension will not create significant impacts on the economic interests of the City, its residents or businesses.
Each request for an “Out-of-Boundary” Sewer and Water Service Agreement shall be subject to a case-by-case review and undergo a Service Feasibility Analysis, as defined below.
Service Feasibility Analysis
No Agreement shall be approved unless and until a comprehensive feasibility analysis has been conducted by the City, which shall include, but not be limited to, an assessment of the following factors:
1. Infrastructure Capacity and Accessibility – The extent to which the City ’s existing sewer and water infrastructure possesses sufficient capacity to accommodate the proposed service extension without compromising existing or planned service obligations.
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2. Long-Term Maintenance Obligations – The anti cipated financial and operational burden associated with maintaining, repairing, and replacing infrastructure necessary to facilitate service under the Agreement, including lifecycle costs, depreciation, and projected capital improvement needs.
3. Impact on Existing and Future Service Demands – A determination as to whether the proposed service extension would negatively impact the City’s ability to meet current or future service demands, including regulatory compliance and long -term sustainability considerations.
4. Technical Study Requirement – As a condition precedent to approval, the Requesting Municipality shall be required to commission and submit a comprehensive study, prepared by a licensed professional engineer, analyzing the feasibility, impact, and technical requirements associated with the requested utility service connection. Such study shall include capacity assessments, identification of necessary infrastructure improvements, and a projection of long-term system impacts. The City shall have full authority to review, approve, or reject the findings of the said study, and all costs associated with the preparation and submission thereof shall be borne solely by the Requesting Municipality.
5. A Recycled Water Allocation Service Feasibility Analysi s shall be conducted to determine whether the proposed service extension results in a net increase in the recycled water allocated to the City. Any Out -of-Boundary Service Agreement for sewer connections shall expressly state that all recycled water generated from wastewater treated within the City's system remains part of the City of Chino ’s allocated supply. No rights, claims, or entitlements to the recycled water shall be granted to the external agency or development receiving sewer service.
Infrastructure Committee Oversight
a) All requests for municipal sewer or water connections under this Agreement shall be subject to a comprehensive review by the Infrastructure Committee. The Infrastructure Committee may, at its discretion, recommend the issuance of an "Abilit y to Serve" letter; however, such a letter shall not constitute approval of the requested service connection.
b) Final authority to approve or deny any service extension request shall rest solely with the City Council. No connection shall be permitted unless and until the City Council grants final approval.
c) Additionally, the "Ability to Serve" letter will include an acknowledgment stating that the Requesting Municipality understands its applicants assume certain risks when proceeding with projects that rely on out-of-boundary sewer or water service. While City of Chino staff adheres to all formal policy requirements in processing such requests, the ultimate outcome remains uncertain, as approval or denial is solely at the discretion of the City Council.
Requesting Agency’s Cost Participation and Applicant Obligations
If the City grants approval to extend service, the City and the adjacent jurisdiction shall enter into an agreement outlining the terms and conditions of the service extension. This agreement shall include, but is not limited to, the following provisions
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a) Where the extension of sewer or water service necessitates new infrastructure, the applicant shall be solely responsible for all costs associated with constructing the necessary service line or laterals to establish the connection to the City’s utility line.
b) If future downstream upsizing or replacement of the existing City -owned utility line is required to accommodate increased capacity needs, the applicant shall provide a one - time, lump-sum fair share contribution toward the cost of such improvements, determined per the Service Feasibility Analysis.
c) The applicant shall also be responsible for the payment of all applicable Development Impact Fees (DIF) and any required pass -through fees to the Inland Empire Utilities Agency (IEUA) in accordance with prevailing fee schedules and agency requirements.
SECTION 4. SUPERSESSION
Resolution 2022-041 is hereby superseded and replaced in its entirety by this resolution. Any provisions, policies, or approvals established under Resolution 2022 -041 that conflict with this resolution are hereby repealed and shall have no further force or effect.
All references to Resolution 2022 -041 in any existing agreements, policies, or documents shall be interpreted in accordance with this resolution. In the event of any inconsistency between this resolution and prior City policies, the terms of this resolution shall govern.
[SIGNATURE PAGE FOLLOWS]
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Resolution 2025-021
APPROVED AND ADOPTED THIS 3rd DAY OF JUNE 2025.
EUNICE ULLOA, MAYOR
ATTEST:
NATALIE GONZAGA, CITY CLERK
State of California )
County of San Bernardino ) ss
City of Chino )
I, Natalie Gonzaga, City C lerk of the City of Chino, do hereby certify the foregoing Resolution 2025-021 was duly adopted by the Chino City Council at a regular meeting held on the 3rd day of June 2025, by the following votes:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
NATALIE GONZAGA, CITY CLERK
530
MEMORANDUM
CITY OF CHINO
ADMINISTRATION DEPARTMENT
CITY COUNCIL MEETING DATE: JUNE 3, 2025
TO: LINDA REICH, CITY MANAGER
FROM: JACKIE MELENDEZ, ASSISTANT CITY MANAGER
SUBJECT
..titl e
Consideration to admit the City of Chino Hills as a New Member of the Animal Resource Center of the Inland Empire.
..end
RECOMMENDATION
..recommendation
Adopt Resolution No. 2025 -028 to a pprove the admission of the City of Chino Hills as a New Member of the Animal Resource Center of the Inland Empire Joint Powers Authority. ..body
FISCAL IMPACT
If approved by the City Council, this would decrease the City of Chino’s capital cost fiscal responsibility to the Animal Resource Center of the Inland Empire in FY 2025 -26 and FY 2026- 27 from 28% to 20%. Starting in FY 2027 -28, it would decrease the opera ting cost to 20% as well.
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:
Superior Customer Service
Responsible Long-Range Planning
Public Service Excellence through Internal and External Partnerships
Revenue:
Expenditure:
Transfer In: Transfer Out:
531
CITY COUNCIL MEETING DATE: JUNE 3, 2025
TITLE: CONSIDERATION TO ADMIT THE CITY OF CHINO HILLS AS A NEW MEMBER OF THE ANIMAL RESOURCE CENTER OF THE INLAND EMPIRE.
PAGE: 2
BACKGROUND
In July 2024, the City Council approved the original Joint Exercise of Powers (JPA) Agreement to establish the West End Animal Services Agency, now known as the Animal Resource Center of the Inland Empire (ARC), in partnership with the City of Ontario. In the last year, several jurisdictions were involved in the discussion surrounding establishing a JPA to provide animal control and animal sheltering services. The City of Chino Hills submitted a formal request to join the ARC, which was approved by the ARC Board on May 6, 2025. Per the JPA Agreement, new members may only be admitted with unanimous approval of the JPA Board of Directors and approval by each governing body of those Member Agencies.
ISSUES/ANALYSIS
At the regular meeting of the ARC on May 6, 2025, the Board of Di rectors unanimously approved the admittance of the City of Chino Hills as a member agency. This action requires all existing member agencies to approve the addition. If approved, this would expand the JPA to a five-member agency with the following fiscal contribution and vote sharing breakdown:
Ontario - 53%
Chino - 20%
Chino Hills – 15%
Montclair - 8%
San Bernardino County (West End Unincorporated Area) - 4% Therefore, staff is requesting that the City Council adopts Resolution No. 2025 -028 to approve the admission of the City of Chino Hills to ARC.
Attachments - JPA Agreement including updated Exhibit B 2025-028 ARC Resolution to Admit Chino Hills
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NOTE:
Upon the Effective Date of the admission of the City of Chino Hills to the Animal Resource Center of the Inland Empire, the attached addendum reflecting updated Initial Share of Contributions / Voting Shares will be ministerially added as Exhibit B of the Joint Powers Agreement.
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EXHIBIT B
CONTRIBUTION FORMULA
From and after the Formation Date, each Member Agency shall pay for the ongoing costs of the Agency according to the following formula, to be initially calculated at the time of the formation of the Agency.
Initial Share of Contributions / Voting Shares
Ontario 53%
Chino 20%
Chino Hills 15%
Montclair 8%
County of San Bernardino 4% (West End unincorporated area only) Note: As further described in the Board’s resolution admitting Chino Hills and setting terms and conditions for its admission, Chino Hills will not receive animal control and sheltering services from the Agency until FY 2027-2028, unless otherwise mutually agreed by the Parties. Notwithstanding the preceding sentence, (1) Chino Hills will pay for its share of capital costs beginning in FY 2025-2026, which may include but not be limited to its share of ownership interests in the permanent shelter property and permanent shelter design, pre-construction, construction, and similar costs; and (2) in lieu of FY 2024-2025 contributions to the Agency’s budget for startup costs, Chino Hills will pay for, contribute to a fund for, or reimburse the Agency for, a truck and horse trailer to be owned by the Agency, in an amount not to exceed $150,000.
Chino Hills’ share of capital costs in FY 2025-2026 and 2026-2027, and share of all costs in FY 2027-2028 and beyond shall be consistent with the above shares.
Determination of Future Share of Contributions / Voting Shares Thereafter, each Member Agency’s proportional share will be recalculated: (1) once every five years, and/or (2) upon a unanimous vote to authorize the induction of a New Member Agency pursuant to the Agreement. Expenses of the Agency are to be paid by each Member Agency in proportion to the services provided to each Member Agency.
Determination of the proportion of services provided to each Member Agency shall be based upon actual or estimated number of calls for animal control service from each Member Agency, the number of animals sheltered from each Member Agency, and/or other factors reasonably bearing on the Agency’s costs, as reasonably determined by the Board. For example, if Ontario receives 53% of the Agency’s services and Chino receives 20%, Ontario’s funding contribution would be 53%, Chino’s would be 20%.
Every five years and upon a unanimous vote to authorize the induction of a New Member Agency, the Board shall adopt an addendum to this Exhibit B showing the updated Share of Contributions / Voting Shares, which shall be ministerially added to the Agreement.
Offsets
Each Member Agency may offset its financial contributions by licenses/fee revenues, and/or by making “in-kind” contributions such as personnel or meeting room space.
Costs for such contributions shall be reasonable and as set forth in a written agreement between a Member Agency and the Agency.
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Additional Costs for Special Services
If a Member Agency wants additional animal services in its jurisdictional area, the cost allocation for such additional service can be made upon action by the Board and reflected in a written “special services” agreement with the Member Agency. Full cost of “special services” should be borne by the requesting Member Agency.
Services to Other Agencies
Other public agencies who contract with the Agency for services in their jurisdiction but who do not qualify or wish to be inducted as Member Agencies will be responsible for paying their actual costs pursuant to a written “contract services” agreement with the Agency, plus any startup or entry costs deemed appropriate by the Board. Such public agency will be considered only a “contracting agency” and not a Member Agency with voting power or other rights of membership for purposes of this Agreement. 562
90656.00001\43211296.1
SIGNATURE PAGE OF THE CITY OF CHINO HILLS AGREEING TO BECOME A PARTY
TO THE ANIMAL RESOURCE CENTER OF THE INLAND EMPIRE POWER JOINT
POWERS AGREEMENT
The City of Chino Hills, California hereby agrees to become a Party to the Animal Resource Center of the Inland Empire Joint Powers Agreement dated July 16, 2024, as amended on January 27, 2025 (previously known as the “West End Animal Service Agency Joint Powers Agreement”), pursuant to Section 14 of the Agreement.
CITY OF CHINO HILLS
By: ______________________________
Name: ______________________________
Title: ______________________________
Date: __________
ATTEST:
By: ______________________________
Name: ______________________________
Title: ______________________________
APPROVED AS TO FORM:
By: ______________________________
Name: ______________________________
Title: ______________________________
Note: The addition of the above-named entity as a Party to the Animal Resource Center of the Inland Empire Joint Powers Agreement is subject to satisfaction of the conditions set forth in Section 14 of the Agreement and such other conditions as previously adopted by resolution of the Animal Resource Center of the Inland Empire Board of Directors. 563
RESOLUTION NO. 2025-028
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHINO, CALIFORNIA, ADMITTING THE CITY OF CHINO HILLS
TO THE ANIMAL RESOURCE CENTER OF THE INLAND EMPIRE
AS A MEMBER AGENCY
WHEREAS, the Joint Powers Authority (JPA) West End Animal Services Agency, now known as the Animal Resource Center of the Inland Empire (ARC), was duly formed and established for the express purpose of providing comprehensive and centralized animal services to its constituent member agencies; and
WEREAS, the current member agencies of the ARC include the City of Chino, City of Ontario, City of Montclair, and unincorporated areas of San Bernardino County; and
WHEREAS, the City of Chino Hills has formally submitted a written request to the ARC, expressing its intent and desire to join the ARC as a full member agency; and
WHEREAS, the governing document of the JPA, specifically the JPA Agreement, explicitly stipulates that the admission of any new member agency shall be subject to the unanimous approval of the JPA Board of Directors, as well as the unanimous approval of the respective governing bodies of each and every existing member agency of the JPA.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHINO DOES HEREBY RESOLVE, DETERMINE, AND ORDER AS FOLLOWS:
SECTION 1. The foregoing recitals are hereby found to be true and accurate, and are incorporated herein as though fully set forth.
SECTION 2. The City Council of the City of Chino, a member agency of the ARC, does hereby approve the formal request by the City of Chino Hills to join the Animal Resource Center of the Inland Empire as a member agency.
SECTION 3. The City Clerk shall be, and hereby is, authorized and directed to certify to the adoption of this Resolution and to transmit a certified copy thereof to the Animal Resource Center of the Inland Empire.
PASSED, APPROVED AND ADOPTED this 3rd day of JUNE 2025.
EUNICE M. ULLOA, MAYOR
ATTEST:
NATALIE GONZAGA, CITY CLERK
564
RESOLUTION NO. 2025-028
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss.
CITY OF CHINO )
I, NATALIE GONZAGA, City Clerk of the City of Chino, hereby certify that Resolution No. 2025-028 is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Chino on June 3, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
NATALIE GONZAGA, CITY CLERK
565
MEMORANDUM
CITY OF CHINO
ADMINISTRATION DEPARTMENT
CITY COUNCIL MEETING DATE: JUNE 3, 2025
TO: MAYOR AND CITY COUNCIL MEMBERS, CITY OF CHINO
FROM: JACKIE MELENDEZ, ASSISTANT CITY MANAGER
SUBJECT
..titl e
Purchase of Real Property at 13218 6th Street.
..end
RECOMMENDATION
..recommendation
1) Appropriate $1,127,000 from the General Fund balance, 2) Adopt Resolution No. 2025 -026, authorizing the Agreement for Purchase and Sale of Real Property and Joint Escrow Instructions to acquire the commercial property at 13218 6 th Street from SKS Property Investment LLC in the amount of $1,100,000, including $4,500 for escrow and title fees, $4,500 for conducting due diligence, and $18,000 for remediation of the Business Environmental Risk (BER) findings, for a not to exceed total of $1,127,000; and 3) authorize the City Manager to execute all documents on behalf of the City.
..body
FISCAL IMPACT
By approving the Purchase Agreement, fees, and remediation of BER findings, there will be a reduction in the FY 2024 -25 General Fund b alance in the amount of $1,127,000. There is sufficient General Fund balance for this transaction. There are sufficient funds for the initial deposit of $30,000 in the current Administration Department Budget.
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:
Positive City Image
Responsible Long-Range Planning
Revenue:
Expenditure: 1009020-48000- Acct Recommended
Transfer In: Transfer Out:
566
CITY COUNCIL MEETING DATE: JUNE 3, 2025
TITLE: PURCHASE OF REAL PROPERTY AT 13218 6TH STREET.
PAGE: 2
BACKGROUND
The property at 13218 6th Street has a history of commercial use as a neighborhood market, with operation dating back to before 1959 and the most recent tenant being El Pueblo Market.
The City has been in discussions with the current owner regarding the potential purchase of this property for several months. A purchase price of $1,100,000 has been agreed upon, and the owner has indicated a preference for an expedited closing.
The subject Property is located adjacent to City -owned properties used for public parking and across the street from the Neighborhood Activity Center. The site includes a commercial building of approximately 2,700 square feet on a 7,296 square foot lot. Based on a review of comparable sales in the vicinity, City staff has assessed the agreed -upon purchase price of $1,100,000 as consistent with market value. The Property is currently leased to an entity owned and controlled by owner which entity operates a business. The lease will be terminated by the owner prior to closing.
ISSUES/ANALYSIS
Property Analysis and Purchase Agreement Terms
The El Pueblo Market property, located at 13218 6th Street, has a General Plan land use designation of Public and is currently zoned Public (P). These designations are described as primarily intended for public uses or institutions, including civic centers and related uses, and support government, civic, cultural, recreational, health, and infrast ructure aspects of the community.
The subject property and surrounding area are situated within the City’s Civic Center Master Plan, approved in December 2022. This plan outlines a vision for the revitalization of the historic Civic Center area, focusing on a mixed-use environment with outdoor spaces and civic facilities.
Staff indicates that acquisition of the property is consistent with the City’s General Plan Public land use goals and could allow for flexible future use in alignment with the Civic Center Master Plan, potentially for public parking or other City purposes related to downtown redevelopment.
The property's location within the civic center area and proximity to the Carol yn Owens Community Center are noted as potentially suitable for such uses.
Due Diligence Findings:
A Phase I Environmental Site Assessment was conducted, which did not recommend a Phase II assessment. The Phase I report identified a potential Business Environmental Risk (BER) related to the possible presence of asbestos and lead-based paint due to the building's age.
A Building Inspection Report identified potential improvements or corrections totaling approximately $18,000 if the existing building were to continue in use.
Purchase Agreement Terms:
The City and the property owner have negotiated a Purchase Agreement with the following key terms:
Listed Price: $1,200,000
Purchase Price: $1,100,000
Deposit: $30,000
Escrow Company: Fidelity National Title Company
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CITY COUNCIL MEETING DATE: JUNE 3, 2025
TITLE: PURCHASE OF REAL PROPERTY AT 13218 6TH STREET.
PAGE: 3
Title Insurance: ALTA (non -extended) owner’s policy through Fidelity National Title Company, with exceptions approved by the City.
Due Diligence Period: 45 days from the City's receipt of all required information. This period may be extended by 10 days after receipt of a Phase II report if recommended by the Phase I. A License Agreement dated April 24, 2025, allowed the City to begin due diligence work, the cost of which is the City's responsibility. Close of Escrow: 15 days after the expiration of the due diligence period. Representations & Warranties: Limited from the owner; the City will acquire the property in "AS-IS" condition.
Costs: The owner will pay for the owner’s title insurance policy, the natural hazard report, and half of the escrow charges. The City will pay half of the escrow charges and all due diligence costs.
Liquidated Damages: The City has the right to terminate the agreement during the due diligence period with a full return of the deposit. Termination after this period may result in forfeiture of the $30,000 deposit as liquidated damages. City Manager Authority: The Purchase Agreement grants the City Manager the authority to execute all transaction documents, including modifications, amendments, and time extensions.
Planning Commission Approval:
At its meeting held on May 21, 2025, the Planning Commission , with a vote of 6 -0-1, with Commissioner Fraga absent, found the acquisition as being in conformance with the general plan.
Attachments: Resolution 2025-026 including Purchase and Sale Agreement
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01225.0020 2003991.1
RESOLUTION NO. 2025-026
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHINO,
CALIFORNIA, APPROVING A PURCHASE AND SALE AGREEMENT WITH
SKS PROPERTY INVESTMENT, LLC , TO ACQUIRE THAT CERTAIN
PROPERTY LOCATED AT 13218 6th STREET IN THE CITY OF CHINO
WHEREAS, the SKS Property Investment, LLC (“Owner”) owns that certain commercial real property located at 13218 6 th Street in the City of Chino, (APN: 1020-282-03) which is improved with a 2700 square foot commercial building, as depicted on Exhibit A (“Property”); and WHEREAS, the Owner leases the Property to a wholly-owned subsidiary which operates a retail business on the Property (“Current Tenant”); and WHEREAS, City owns the adjacent properties which are currently used for public parking (“Existing Public Parking”); and
WHEREAS, the City has commenced due diligence investigation of the Property pursuant to that certain License Agreement dated April 24, 2025 with the Owner (“License Agreement”) ; and
WHEREAS, Staff recommends the City acquire the Property free of the Current Tenant so it can expand as the city deems appropriate for future use adjacent to the Civic Center; and WHEREAS, Staff recommends the City Council approve the Agreement for Purchase and Sale of Real Property and Joint Escrow Instructions pursuant to which City will acquire the Property free of the Current Tenant for the purchase price of $1,100,000 (“Purchase Pr ice”) attached hereto as Exhibit B (“Purchase Agreement”); and WHEREAS, Staff has confirmed that the Purchase Price is supported by comparable sales of commercial property in the area of the Property; and WHEREAS, Section 65402 of the Government Code requires that the Planning Commission report to the City Council as to whether the acquisition of real property conforms with the City of Chino General Plan; and
WHEREAS, on May 21, 2025 , the Planning Commission of the City of Chino duly considered the proposed acquisition and determined that the proposed acquisition of the property at 13218 6th Street, Chino is in conformance with the General Plan; and
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF CHINO, CALIFORNIA, HEREBY RESOLVES AS FOLLOWS:
SECTION 1. The foregoing recitals a re hereby incorporated and adopted as the findings of the City Council.
SECTION 2. That the City Council confirms its approval to purchase of the Property located at 13218 6th Street in the amount of $1,100,000 pursuant to the Purchase Agreement plus the cost for due diligence (estimated at $4,500) and escrow and closing costs not to exceed $4,500. 569
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SECTION 3. The City Manager or designee is hereby authorized and directed to proceed with the acquisition of the Property pursuant to the Purchase A greement and to execute all documents on behalf of the City, including execution of all related escrow, closing, and similar documents necessary to finalize the acquisition pursuant to the Purchase Agreement.
SECTION 4. The City Clerk shall certify to the passage and adoption of this resolution, and the same shall thereupon take effect and be in force.
PASSED, APPROVED, AND ADOPTED THIS 3rd DAY OF JUNE 2025.
______________________________
Eunice M. Ulloa, Mayor
ATTEST:
_____________________________
Natalie Gonzaga, City Clerk
STATE OF CALIFORNIA }
COUNTY OF SAN BERNARDINO } ss
CITY OF CHINO }
I, Natalie Gonzaga, City Clerk, City of Chino, California do hereby certify that the foregoing Resolution No. 2025-026 was duly adopted by the City Council of the City of Chino, at the regular meeting on the 3RD day of June 2025 by the following vote:
AYES Councilmembers
NOES Councilmembers
ABSENT Councilmembers
ABSTAIN Councilmembers
Attachments
Exhibit A – Depiction of Property
Exhibit B – Purchase Agreement
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01225.0020 2003991.1
EXHIBIT A
DEPICTION OF PROPERTY
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591
592
593
594
595
596