Date: Tuesday, September 1, 2026, 5:00 p.m.
Location: Council Chambers, 276 Fourth Avenue, Chula Vista, CA
REGULAR CITY COUNCIL MEETING
Watch live in English and Spanish: chulavistaca.gov/councilmeetings or Cox Ch. 24 (English only).
Free Spanish interpretation is available on-site.
_______________________________________________________________________________________ Watch the Meeting. City Council meetings may be viewed live or recorded in English or Spanish at chulavistaca.gov/councilmeetings. To view in Spanish, click "ES" at the bottom of the webpage. Closed captioning is available in both languages.
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Time Allotted for Speaking. Speaker time is subject to change by the Presiding Officer or City Council.
Individuals using interpretation services will be allotted twice the time otherwise provided. - Consent Calendar, including one or more items: 3 minutes - Agenda Items not on the Consent Calendar: 3 minutes
- General Public Comment for matters not on the agenda: 3 minutes General Public Comment. The first seven registered speakers will be heard during the first general public comment period. If additional speakers are registered, they will be heard during the continued general public comment period. If all registered speakers address the City Council during the first general public comment period, there will be no continued period.
Agenda Packet and Meeting Materials. The agenda packet, including staff reports, draft resolutions and ordinances, and other backup materials, is available at chulavistaca.gov/councilmeetings and at the City Clerk's Office.
Accessibility, Translation, and Interpretation Assistance. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office at [email protected] or (619) 691-5041. In accordance with applicable state law, the City will also provide reasonable assistance to members of the public who wish to translate the meeting into another language or receive interpretation provided by another member of the public. Providing at least 48 hours' notice will help ensure that reasonable arrangements can be made.
Gov. Code § 84308 Regulations. Government Code section 84308 is intended to promote transparency and fairness in governmental decision-making by limiting certain campaign contributions involving proceedings for a "license, permit, or other entitlement for use," as defined in the Political Reform Act. For agenda items subject to these regulations, parties to the proceeding must disclose any campaign contribution over $500, aggregated, made within the preceding 12 months by the party, their agent, or others whose contributions must be aggregated under Government Code section 82015.5. The disclosure must identify the contributor and the amount contributed. An agenda notation stating "G.C. § 84308 Regulations Apply: Yes" means the item is subject to these regulations.
Pages
1. CALL TO ORDER
2. ROLL CALL
3. PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE
4. SPECIAL ORDERS OF THE DAY
4.1 Oaths of Office for the Cultural Arts Commission:
• Lisa Brannen, Cultural Arts Commission
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5. CONSENT CALENDAR (Items 5.1 through 5.3)
Consent calendar items are considered together and acted upon by one motion. There is no separate discussion of these items unless the Mayor or a City Councilmember removes the item from the consent calendar. Items removed from the consent calendar will be heard as action items.
RECOMMENDED ACTION:
City Council approve the recommended action on the below consent calendar items.
5.1 Waive Reading of Text of Resolutions and Ordinances RECOMMENDED ACTION:
Approve a motion to read only the title and waive the reading of the text of all resolutions and ordinances at this meeting.
5.2 Wastewater Disposal Agreement: Approval of the Revised “Second Amended and Restated Regional Wastewater Disposal Agreement” (SARA) 8 Report Number: 26-0246
Location: No specific geographic location
Department: Engineering & Capital Projects
G.C. § 84308 Regulations Apply: No
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the State California Environmental Quality Act (CEQA) Guidelines.
Therefore, pursuant to State CEQA Guidelines Section 15060(c)(3), no environmental review is required.
RECOMMENDED ACTION:
Adopt a resolution approving the revised version of the Second Amended and Restated Regional Wastewater Disposal Agreement (SARA).
5.3 Grant Acceptance and Appropriation: Accept $97,589 from the Department of Alcoholic Beverage Control and Amend the Fiscal Year 2026-27 Adopted Budget by Appropriating the Grant Funds
248
Report Number: 26-0273
Location: No specific geographic location
Department: Police
G.C. § 84308 Regulations Apply: No
Environmental Notice: The activity is not a “Project” as defined under section 15378 of the California Environmental Quality Act (“CEQA”) State Guidelines.
Therefore, pursuant to State Guidelines section 15060(c)(3) no environmental review is required.
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda Page 3 of 628 RECOMMENDED ACTION:
Adopt a resolution approving an agreement and accepting $97,589 in grant funds from the Department of Alcoholic Beverage Control to be used for the Alcohol Policing Partnership Program and amending the Fiscal Year 2026-27 budget to appropriate funds to the Police Grants Section of the State Grants Fund for the Alcohol Policing Partnership Program. (4/5 Vote Required)
6. PUBLIC COMMENTS 265
Twenty-one minutes are scheduled for the public to address the City Council for three minutes each on any matter within the jurisdiction of the City Council that is not on the agenda. The remaining speakers, if any, will be heard during the continued Public Comment period.
7. ACTION ITEMS
7.1 Consider Items Removed From the Consent Calendar, if Any Consider items removed from the consent calendar by the Mayor or a City Councilmember, if any. If no items were removed from the consent calendar, this item will be withdrawn.
7.2 Community Benefit District: Preliminary Approval of the Final Assessment Engineer’s Report; Expressing Intention to Establish the Downtown Chula Vista Community Benefit District for Twenty Years; and Setting the Public Hearing on Such Establishment
274
Report Number: 26-0227
Location: Approximately twenty-seven (27) square blocks consisting of two hundred fifty-three (253) parcels on or near the historic Third Avenue business corridor, generally bounded by E Street to the north, including properties on both the north and south sides of E Street, and I Street to the south, including properties on the north side of I Street only. The eastern and western boundaries vary along the corridor and generally follow the predominantly commercial and governmental parcels located on either side of Third Avenue. The area also includes properties along H Street between Third Avenue and Fifth Avenue.
Department: Economic Development
G.C. § 84308 Regulations Apply: No
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the State California Environmental Quality Act (CEQA) Guidelines.
Therefore, pursuant to State CEQA Guidelines Section 15060(c)(3), no environmental review is required.
RECOMMENDED ACTION:
Adopt a resolution preliminarily approving the final Assessment Engineer’s Report, expressing the intention to establish the Downtown Chula Vista Community Benefit District for a period of twenty (20) years, setting the public hearing on such establishment, and authorizing the City Manager to vote in favor of establishing the district for all parcels within the district boundaries owned by the City.
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7.3 Agreement: Approve an Encampment Delegated Maintenance Agreement with California Department of Transportation (“Caltrans”) for Encampment Removal Activities Along Interstate 5 from Main Street to E Street 443
Report Number: 26-0208
Location: Interstate 5 from Main Street to E Street (Post Miles: 5.4 to 8.6) Department: Housing and Homeless Services, Police, and Public Works G.C. § 84308 Regulations Apply: No
Environmental Notice: The project qualifies for a Categorical Exemption pursuant to California Environmental Quality Act (“CEQA”) Guidelines Section 15301 Class 1 (Existing Facilities), which categorically exempts maintenance activities such as the removal of litter and debris.
RECOMMENDED ACTION:
Adopt a resolution authorizing the City Manager to enter into an Encampment Delegated Maintenance Agreement for a reimbursable amount in fiscal year 2026-27 of up to $200,000 and appropriate funds therefor. (4/5 Vote Required)
7.4 Grant Acceptance and Agreements: Accept a Grant and Approve an Agreement with the California Board of State and Community Corrections, Approve Agreements with SBCS Corporation and SANDAG for the Proposition 64 Grant Program, and Appropriate Funds
469
Report Number: 26-0276
Location: No specific geographic location
Department: Police
G.C. § 84308 Regulations Apply: No
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act (“CEQA”) State Guidelines.
Therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
RECOMMENDED ACTION:
Adopt the following resolutions:
Accepting $3,207,603 in grant funds from the California Board of State and Community Corrections for the Proposition 64 Public Health and Safety Grant Program and appropriating $855,238 to the fiscal year 2026-27 Police Grants Section of the State Grants Fund (4/5 Vote Required)
A.
Approving Agreement Number BSCC 1430-26 with the Board of State Community Corrections for the Proposition 64 Public Health and Safety Grant Program
B.
Approving agreements with SBCS Corporation and SANDAG for the Proposition 64 Public Health and Safety Grant Program
C.
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8. PUBLIC COMMENTS (CONTINUED)
There will be no continued Public Comment period if all speakers present at the first Public Comment period are heard.
9. CITY MANAGER’S REPORTS
10. MAYOR’S REPORTS
11. COUNCILMEMBERS’ REPORTS
11.1 Councilmember Preciado: Ratify Appointments to Boards, Commissions, Committees
587
• Matt Yagyagan, Parks and Recreation Commission
Location: No specific geographic location
G.C. § 84308 Regulations Apply: No
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act (CEQA) State Guidelines.
Therefore, pursuant to CEQA Guidelines Section 15060(c)(3), no environmental review is required.
RECOMMENDED ACTION:
Ratify the appointments as appropriate.
11.2 Deputy Mayor Fernandez: Ratify Appointments to Boards, Commissions, Committees
594
• Dr. Vernon Moore, Charter Review Commission
• Aldo Brambila, Measure A Citizens' Oversight Committee • Marianna Garcia Diaz, Sustainability Commission
• John Rodgers, Traffic Safety Commission
• Chad Jones, Veterans Advisory Commission
Location: No specific geographic location
G.C. § 84308 Regulations Apply: No
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act (CEQA) State Guidelines.
Therefore, pursuant to CEQA Guidelines Section 15060(c)(3), no environmental review is required.
RECOMMENDED ACTION:
Ratify the appointments as appropriate.
12. CITY CLERK'S REPORTS
13. CITY ATTORNEY'S REPORTS
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14. ADJOURNMENT
to the regular City Council meeting on September 22, 2026, at 5:00 p.m. in the Council Chambers.
Materials provided to the City Council related to an open session item on this agenda are available for public review, please contact the Office of the City Clerk at [email protected]
or (619) 691-5041.
We encourage community participation - sign up at www.chulavistaca.gov to receive email notifications when City Council agendas are published online.
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September 1, 2026
ITEM TITLE
Wastewater Disposal Agreement: Approval of the Revised “Second Amended and Restated Regional Wastewater Disposal Agreement” (SARA)
Report Number: 26-0246
Location: No specific geographic location
Department: Engineering & Capital Projects
G.C. § 84308 Regulations Apply: No
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the State California Environmental Quality Act (CEQA) Guidelines. Therefore, pursuant to State CEQA Guidelines Section 15060(c)(3), no environmental review is required.
Recommended Action
Adopt a resolution approving the revised version of the Second Amended and Restated Regional Wastewater Disposal Agreement (SARA).
SUMMARY
On January 20, 2026, the Chula Vista City Council approved the original version of the SARA through Resolution No. 2026-009. Following Council approval, unforeseen comments from a Participating Agency prevented the agreement from being fully executed. In response, the Metro JPA (Joint Powers Authority) revised the SARA to address all identified concerns. Staff therefore recommend approval of the revised SARA, dated June 12, 2026.
ENVIRONMENTAL REVIEW
The proposed activity has been reviewed for compliance with the California Environmental Quality Act (CEQA), and it has been determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA.
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BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable
DISCUSSION
On October 23, 2025, the original version of the SARA was approved by the Metro JPA (Attachment 1), initiating the approval process by the Participating Agencies. On January 20, 2026, the City of Chula Vista approved the original version of the SARA via Resolution No. 2026-009 (Attachment 2). Participating Agencies (PA), with the exception Padre Dam Municipal Water District, also approved the original version of the SARA. Since all PAs need to approve the revised SARA prior to implementation, the agreement has not yet gone into effect.
To address all Participating Agency (PA) concerns, the Metro JPA Executive Team, in collaboration with staff and legal counsel from the City of San Diego and Padre Dam Municipal Water District (MWD), worked diligently to negotiate and prepare a revised version of the SARA. The revised agreement was developed to address the concerns of the City of San Diego, Padre Dam MWD, and the Metro Pure Water SARA Ad Hoc Committee. These collaborative efforts resulted in a mutually acceptable draft, which is being presented for consideration at today's meeting. The revised SARA, including all exhibits, is included as Attachment 3 to the agenda packet.
The key revisions to SARA include:
(1) Addition of Section 2.5.6 to address residuals flow. (2) Revision to Section 5.2, to include an illustrative example calculation of the FAB (Functional Allocated Billing) methodology, per Exhibit J.
(3) Revision to Section 14.1 to provide that the SARA shall have an effective date of July 1, 2026, regardless of the date on which the final Participating Agency approves and executes the revised SARA. Although the revised SARA will not become operative until it has been approved and executed by all required parties, upon such final approval and execution, its effective date shall be deemed retroactive to July 1, 2026, for all purposes, including billing and cost allocation purposes. (4) Revision to Section 15.1.5 to change the required voting threshold from two-thirds (2/3) to three-fourths (3/4) for approval of changes affecting billing under the FAB methodology. To incorporate the foregoing revisions and to comprehensively and equitably address the allocation of costs, revenues, and billing obligations associated with the Pure Water Program, including the construction, expansion, and/or modification of Metro System facilities beyond Phase 1, the City of San Diego and the Participating Agencies, including the City of Chula Vista, desire to approve and adopt the SARA in the form presented herein.
The background and technical discussion regarding SARA are contained in the staff report presented to City Council on January 20, 2026 (Attachment 4). The revised SARA recommended for approval this evening is provided as Attachment 3.
DECISION-MAKER CONFLICT
Staff has reviewed Councilmembers’ property holdings and has determined that the effect of the decision contemplated by this action on public officials’ interest in real property would also affect 10% or more of all
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property owners in the public officials’ jurisdiction, or 5,000 property owners in the jurisdiction of the officials’ agency, in substantially the same manner. Therefore, pursuant to California Code of Regulations (§18707, §18707.1), the Public Generally Exception applies.
CURRENT-YEAR FISCAL IMPACT
The City’s sewer enterprise fund is self-supporting and funds the operations, maintenance, repair, rehabilitation and expansion of the system, and treatment. There is no fiscal impact as a result of this action.
Funding is available based on current-year budget appropriations. The utility is primarily supported by user fees, which provide a sustainable annual funding source. The current rate plan generates sufficient revenue to fund the financial obligations for wastewater service and equitably recover costs from customers. The current rate plan expired on June 30, 2026, and will be updated to incorporate the pro-rata share of the Pure Water Program costs as determined by the Metro JPA.
ONGOING FISCAL IMPACT
The five-year financial plan adopted by the City Council for the period of fiscal year 2021-22 through fiscal year 2025-26 was developed using a robust and dynamic cash flow model that mirrors the utility’s accounting and operations. The model contemplated potential changes in operating costs, including increases in treatment costs associated with the upgrade of City of San Diego’s Point Loma Wastewater Treatment Plant (PLWTP). The Engineering & Capital Projects Department is currently administering an updated sewer rate report that will be completed in time to support the adoption of the new sewer rate by the July 1, 2027 deadline. These expenses will be considered as part of the annual budget development process in future years.
ATTACHMENTS
1. Original SARA, dated January 20, 2026
2. City Council Resolution No. 2026-009
3. Proposed Revised Second Amended and Restated Regional Wastewater Disposal Agreement
4. Original SARA Staff Report dated January 20, 2026
Staff Contact: Luis Schaar, Director of Engineering and Capital Projects/City Engineer Patrick Moneda, Principal Civil Engineer
Michael Benoza, Senior Civil Engineer
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
Form Rev 9/30/2025
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING THE REVISED SECOND
AMENDED AND RESTATED WASTEWATER DISPOSAL
AGREEMENT, DIRECTING THE METRO JPA
REPRESENTATIVE TO SUPPORT THE SAME AT METRO JPA
MEETINGS, AND AUTHORIZING MAYOR TO EXECUTE
SAME
WHEREAS, the City of Chula Vista passed, adopted and approved the original version of Second Amended & Restated Wastewater Disposal Agreement (the “SARA”), per Resolution No. 2026-009 on January 20, 2026, to address the costs and revenues associated with Phase 1 of the Pure Water Program, and
WHEREAS, since October 23, 2025, the City of San Diego and all Participating Agencies, except for Padre Dam Municipal Water District, approved the original version of the SARA; and WHEREAS, the Metro JPA Executive Team, together with staff and legal counsel from the City of San Diego and Padre Dam MWD, have worked diligently to negotiate and draft a revised version of SARA that would be acceptable to the City of San Diego, Padre Dam MWD, and the Metro Pure Water (SARA) Ad Hoc Committee (Exhibit 1); and WHEREAS, the negotiators were able to successfully agree to the revised draft of the SARA that is being presented at today’s meeting; and
WHEREAS, a final draft with exhibits is attached to today’s agenda packet, and WHEREAS, the key revisions to SARA include:
(1) addition of Section 2.5.6 to address residuals flow, (2) revision to Section 5.2, to include an illustrative example calculation of the FAB methodology, per Exhibit J,
(3) revision to Section 14.1 to have an effective date of July 1, 2026, irrespective of when the last party signs the revised SARA, this means that the SARA will not be effective until the last party approves and signs the agreement, but once the last party signs, the effective date of the SARA for all intents and purposes, including billing purposes, will be retroactive to July 1, 2026; (4) revision to Section 15.1.5, a change from a two-thirds voting threshold to a three-fourths voting threshold with respect to billing-related changes (changes to the Functional Allocated Billing (FAB) methodology); and
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
Resolution No.
WHEREAS, in an effort to present the revisions above, and comprehensively and equitably address the costs, revenues, and billing system associated with the Pure Water Program and the related construction, expansion, and/or modification of Metro System facilities beyond Phase 1, the City of San Diego and Participating Agencies, including the City of Chula Vista wish to amend and restate the SARA as provided herein.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it approves the Second Amended and Restated Regional Wastewater Disposal Agreement between the City of San Diego and the Participating Agencies, in the form presented, with such modifications as may be required or approved by the City Attorney, a copy of which shall be kept on file in the Office of the City Clerk, and authorizes and directs the Mayor to execute the same.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it authorizes and directs the Metro JPA representative to support the Second Amended and Restated Regional Wastewater Disposal Agreement at Metro JPA meetings.
Presented by Approved as to form by
Luis Schaar, PE Marco A. Verdugo
Director of Engineering & Capital Projects/ City Attorney City Engineer
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September 1, 2026 Post City Council Agenda
SECOND AMENDED AND RESTATED
REGIONAL WASTEWATER DISPOSAL AGREEMENT
BETWEEN
THE CITY OF SAN DIEGO
AN
THE PARTICIPATING AGENCIES
IN
THE METROPOLITAN SEWERAGE SYSTEM
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TABLE OF CONTENTS
Page
I. DEFINITIONS.................................................................................................................... 3
2. OWNERSHIP AND OPERATION OF THE METRO SYSTEM...................................... 9
2. 1 Rights of the Parties................................................................................................. 9
2. 2 Metro System Services............................................................................................ 9
2. 3 Flow Commitment................................................................................................. 10
2. 4 Funding Obligations.............................................................................................. 10
2. 5 Limitations on Types and Condition of Wastewater ............................................. 1111
2. 6 Enforcement Actions.......................................................................................... 11
2. 7 Right of First Refusal ...................................... . 13
2. 8 Uniform Enforcement of Pretreatment Program by City......................................14
2. 9 Wastewater Generated at Military Bases............................................................... 16
3. CAPACITY RIGHTS........................................................................................................ 16
3. 1 Contract Capacity.................................................................................................. 16
3. 2 Inter -Agency Transfers of Contract Capacity ........................................................ 16
3. 3 New Contract Capacity.......................................................................................... 17
3. 4 Reductions in Metro System Capacity.................................................................. 18
3. 5 Restrictions on Veto of Transfers and Acquisitions of Capacity .......................... 18
3. 6 Amendments to Exhibits B.................................................................................... 18
3. 7 The South Bay Ocean Outfall................................................................................ 18
4. FINANCE, BUDGETING, AND ACCOUNTING: PAYMENT AND MONITORING PROVISIONS.................................................................................................................... 18
4. 1 Payment for Metro System Facilities.................................................................... 18
4. 2 Payment for Additional Metro System Facilities.................................................. 19
4. 3 Payment for Operation and Maintenance.............................................................. 19
4.4 Charges Based on Flow, Strength and Fixed Capacity: Exception ....................... 1 9
4. 5 Monitoring Flow and Strength ............................ 21
5. FINANCE, BUDGETING, AND ACCOUNTING: SYSTEM OF CHARGES
5. 1 Charges Authorized................................................................................
5. 2 Functional Allocated Billing ( FAB) .......................................................
5. 3 Metro System Costs................................................................................
5. 4 Excluded Costs.......................................................................................
5. 5 Metro System Revenues and Allocations...............................................
5. 6 Excluded Revenue..................................................................................
5. 7 Estimate and Billing Schedule and Year End Adjustment .....................
5. 8 Financial Statements...............................................................................
5. 9 Debt Financing......................................................................................-.
5. 10 Allocation of Operating Reserves and Debt Service Coverage..............
5. 11 Amending the System of Charges.......................................................... 22 22
22 23
23 23
24 24
25 25
26 26
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6. FINANCE, BUDGETING, AND ACCOUNTING: PURE WATER PROGRAM COST ALLOCATION AND REVENUES — PHASE 1.............................................................. 26
6. 1 North City Water Reclamation Plant Modification............................................... 26
6. 2 New, Expanded or Modified Metro System Facilities.......................................... 26
6. 3 Costs Excluded from Metro System Costs — Phase I............................................ 26
6. 4 North City Water Reclamation Plant Improvement Costs Included as Metro SystemCosts.......................................................................................................... 27
6. 5 Reallocation of PWP Costs incurred since FY 2014 ............................................. 27
6. 6 Revenue Sharing for Repurified Water................................................................. 28
6. 7 Capital Expense Rate............................................................................................. 30
6. 8 Amending Pure Water Program Cost Allocation and Revenues — Phase 1........... 32
7. FINANCE, BUDGETING, AND ACCOUNTING: PURE WATER PROGRAM COST ALLOCATION AND REVENUES — PHASE 2.............................................................. 32
7. 1 Pure Water Program — Phase 2.............................................................................. 32
7. 2 Costs Excluded As Metro System Costs............................................................... 32
7. 3 Revenue Sharing for Repurified Water — Phase 2 ................................................. 33
7. 4 Capital Expense Rate Phase 2............................................................................. 33
8. FUTURE NEGOTIATIONS AND COOPERATION...................................................... 34
9. THE METRO COMMISSION.......................................................................................... 34
9. 2 Advisory Responsibilities of Metro JPA............................................................... 34
9. 3 Delegation of Decision -Making Authority of the Metro JPA............................... 35
9. 4 Standing................................................................................................................. 35
10. DISPUTE RESOLUTION................................................................................................. 35
10. 1 Mandatory Non -Binding Mediation...................................................................... 35
10. 2 Selection of Mediator............................................................................................ 35
10. 3 Mediation Expenses............................................................................................... 35
10.4 Conduct of Mediation............................................................................................35
10. 5 Mediation Results.................................................................................................. 36
10. 6 Performance Required During Dispute................................................................. 36
11. INSURANCE.................................................................................................................... 36
11. 1 City Shall Maintain All Required Insurance......................................................... 36
11. 2 Substantially Equivalent Coverage........................................................................ 36
12. INTERRUPTION OF SERVICE......................................................................................36
13. NOTICES REQUIRED UNDER AGREEMENT............................................................. 37
14. EFFECTIVE DATE AND EXPIRATION........................................................................ 37
14. 1 Effective Date........................................................................................................ 37
14. 2 Expiration..................................................................................................... ... 37
14. 3 Contract Capacity Rights Survive Expiration........................................................37
14. 4 Abandonment......................................................................................................... 3 8 10- 23- 25
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15. ADMINISTRATIVE AGREEMENTS......................................•...................................... 38
15. 1 Use and Process for Administrative Agreements.................................................. 38
16. GENERAL......................................................................................................................... 39
16. 1 Exhibits.......................................................................................... ................. 39
16. 2 Electronic Exhibits and Attachments..................................................................... 39
16. 3 Amendments to Agreement................................................................................... 40
16. 4 Construction of Agreement.................................................................................... 43
16. 5 Declarations Re: Agreement.................................................................................. 44
16. 6 Right to Make Other Agreements.......................................................................... 44
16. 7 Statute of Limitations to Resolve Billing Issues.................................................... 44
16. 8 Counterparts and Electronic Signatures................................................................. 45
16. 9 Transparency.......................................................................................................... 45
16. 10 Incorporation of Recitals....................................................................................... 45
16. 11 Joint Exercise of Power......................................................................................... 45 ACRONYM LIST:
ARA Amended and Restated Regional Wastewater Disposal Agreement COD Chemical Oxygen Demand
CIP Capital Improvement Project( s)
CPM Construction Project Management
CWA San Diego County Water Authority
ECAWP JPA East County Advanced Water Purification Joint Powers Authority FAB Functional Allocated Billing
MBC Metropolitan Biosolids Center
MGD Millions of Gallons per Day
NCWRP North City Water Reclamation Plant
NPDES National Pollutant Discharge Elimination System
PLWTP Point Loma Wastewater Treatment Plant
PWP Pure Water Program
RSDP Reject Stream from Demineralization Process
SBOO South Bay Ocean OutfaIl
SBWRP South Bay Water Reclamation Plant
TSS Total Suspended Solids
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September 1, 2026 Post City Council Agenda
SECOND AMENDED AND RESTATED REGIONAL WASTEWATER DISPOSAL
AGREEMENT
THIS SECOND AMENDED AND RESTATED REGIONAL WASTEWATER
DISPOSAL AGREEMENT (" Agreement") is made and entered into this day of 20 , by and between the CITY OF SAN DIEGO, a municipal corporation the " City"), on the one hand; and the CITY OF CHULA VISTA, a municipal corporation; the CITY OF CORONADO, a municipal corporation; the CITY OF DEL MAR, a municipal corporation; the CITY OF EL CAJON, a municipal corporation; the CITY OF IMPERIAL BEACH, a municipal corporation; the CITY OF LA MESA, a municipal corporation; the LEMON GROVE SANITATION DISTRICT, a political subdivision of the State of California; the CITY OF NATIONAL CITY, a municipal corporation; the CITY OF P0 WAY, a municipal corporation; the OTAY WATER DISTRICT, a political subdivision of the State of California; the PADRE DAM MUNICIPAL WATER DISTRICT, a political subdivision of the State of California; and the SAN DIEGO COUNTY SANITATION DISTRICT, a political subdivision of the State of California ( collectively, the " Participating Agencies"), on the other hand. The City and the Participating Agencies may be referred to herein individually as a " Party," and collectively as the Parties."
RECITALS
WHEREAS, the City and the Participating Agencies ( or their predecessors in interest) entered into that certain Regional Wastewater Disposal Agreement dated May 18, 1998 ( the " 1998 Agreement"), which provided, among other things, for certain contract rights to capacity in the Metropolitan Sewerage System, a system of wastewater conveyance, treatment, and disposal facilities (" Metro System") and the establishment of a mechanism to fund the planning, design, construction, operation, and maintenance of the Metro System by the City and the Participating Agencies; and
WHEREAS, the purposes of the 1998 Agreement were: ( 1) to replace the prior -existing sewage disposal agreements between the City and the Participating Agencies; ( 2) to provide certain contract rights to capacity in the Metro System to the Participating Agencies; ( 3) to establish a mechanism to fund the planning, design, construction, operation and maintenance of the Metro System by the City and the Participating Agencies as necessary to provide hydraulic capacity, and to comply with applicable law and with generally accepted engineering practices; and ( 4) to establish a system of charges which allocates the costs of the planning, design and construction of such new wastewater conveyance, treatment and disposal facilities as are necessary solely to provide for new capacity on a fair and equitable basis; and WHEREAS, on April 29, 2014 the San Diego City Council gave its approval and support for the Pure Water San Diego program by adoption of Resolution No. R- 308906, which approved and supported the City' s efforts to develop an implementation strategy to offload wastewater flow from the Point Loma Wastewater Treatment Plant through implementation of potable reuse, resulting in effluent discharged to the Pacific Ocean being equivalent to what would be achieved by upgrading the Point Loma Wastewater Treatment Plant to a secondary treatment plant secondary equivalency); and
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WHEREAS, the City is implementing a phased, multi -year program designed to achieve compliance with the Clean Water Act and regionally produce up to 83 million gallons per day of safe, reliable potable water using new, expanded, or modified facilities, some of which will include Metro System facilities, in order to achieve secondary equivalency at the Point Loma Wastewater Treatment Plant; and
WHEREAS, the Pure Water Program will not only benefit the City by producing repurified water, but also the Participating Agencies and their wastewater customers, especially if secondary equivalency is recognized through federal legislation amending the Clean Water Act. Specifically, implementation of the Pure Water Program will reduce wastewater discharges to the Point Loma Wastewater Treatment Plant, part of the Metro System where a large portion of the Participating Agencies' wastewater is currently treated and disposed by discharging it into the Pacific Ocean.
By diverting wastewater from the Point Loma Wastewater Treatment Plant and reducing the effluent discharged into the Pacific Ocean, the City and the Participating Agencies will potentially avoid billions of dollars in unnecessary capital, financing, energy, and operating costs to upgrade the Point Loma plant to secondary treatment at full capacity. Avoiding such costs would result in significant savings for regional wastewater customers and achieve environmental benefits by reducing ocean discharge; and
WHEREAS, on or around November 2019, the East County Advanced Water Purification Joint Powers Authority ( the " ECAWP JPA") was created to implement a potable reuse program to improve local and regional water supply reliability to supply advanced treated recycled water to East San Diego County through the East County Advanced Water Purification Project ( the ECAWP Project"). The ECAWP Project is planned to capture and treat approximately 15 million gallons per day of wastewater that would otherwise be disposed of in the Metro System to produce an annual average supply of approximately 11. 5 million gallons per day of new local drinking water. By diverting some wastewater and wastewater content away from the Metro System, the ECAWP Project has the ability to aid and contribute towards the City and region' s efforts to produce a regional annual average of up to 83 million gallons per day of water suitable for potable reuse by December 31, 2035, as described in the Cooperative Agreement in Support of Pure Water San Diego executed by the City and certain environmental stakeholders on December 9, 2014. The ECAWP Project includes a residuals bypass system that will convey RSDP ( as defined herein) from the advanced water purification facility, and Centrate from the solids dewatering process of the solids handling facility, to an existing regional sewage gravity pipeline owned and operated by the City for treatment and disposal; and
WHEREAS, effective on or around August 22, 2021, the City and the Participating Agencies amended the 1998 Agreement by executing an Amended and Restated Regional Wastewater Disposal Agreement ( the " ARA") to address the costs and revenues associated with Phase i ofthe Pure Water Program, including specific cost allocations related to the construction, expansion, andlor modification of Metro System facilities and Water Repurification System facilities designed to produce up to 30 million gallons per day of Repurified Water (" Phase 1").
The ARA provided that within one year of its effective date, the Parties intended to meet and negotiate in good faith regarding one or more amendments to the ARA or to its Exhibits to address multiple outstanding items described in Section 2. 9 of the ARA; and 2-
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WHEREAS, Section 14. 2 of the ARA provided that the Parties may amend the ARA by a written agreement between the City and all Participating Agencies stating the Parties' intent to amend or supplement the agreement; and
WHEREAS, in an effort to address in good faith the outstanding items described in Section 2. 9 of the ARA, and comprehensively and equitably address the costs, revenues, and billing system associated with the Pure Water Program and the related construction, expansion, and/ or modification of Metro System facilities beyond Phase 1, the City and Participating Agencies wish to amend and restate the ARA as provided herein.
NOW, THEREFORE, in consideration ofthe mutual promises set forth in this Agreement, the City and the Participating Agencies restate and amend the ARA and agree as follows:
1. DEFINITIONS
1. 1 Administrative Agreement shall refer to a formal binding contract, approved under the process set forth in Section 15 of this Agreement, which implements technical, administrative, operational, and/ or procedural details ofthis Agreement.
1. 2 Administrative Approval is an approval mechanism authorized by this Agreement that refers to a City administrative process by which the subject of a particular action is presented to the City' s Director of the Public Utilities Department or their designee for approval, based on discussion and evaluation according to sound engineering standards if applicable, and any additional requirements related to review for the action requiring the City' s Administrative Approval as set forth in this Agreement.
1. 3 Annual Average Daily Flow is the number, in millions of gallons of wastewater per day (" MGD"), calculated by dividing total Flow on a fiscal year basis by the number of days in the applicable year, which is a term used for billing purposes.
1. 4 ARA shall mean the Amended and Restated Regional Wastewater Disposal Agreement between the City and the Participating Agencies effective August 22, 2021.
1. 5 Capital Expense Rate shall mean the same as the term is defined in Section 6. 7. 2.
1. 6 Capital Improvement Costs means all costs of the planning, design, financing, construction, and/ or replacement necessary to render a capital project facility fully operational, including upgrades and reconstruction, consistent with the City' s policies and procedures. This includes costs for planning and environmental work; procurement of consultants or contractors to perform such work; construction management; investigative studies and pre -design work; labor and materials; inspection and testing; and financing cost including interest on financial instruments.
1. 7 Centrate shall mean the liquid byproduct that results from the dewatering of digested solids as part of wastewater treatment processes.
1. 8 Chemical Oxygen Demand or COD means the measure of the chemically decomposable material in wastewater, as determined by the procedures specified in the most 3-
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current edition of " Standard Methods for the Examination for Water and Wastewater," or any successor publication which establishes the industry standard.
1. 9 City shall mean and refer to the City of San Diego.
1. 10 City' s Water Utility shall mean any and all facilities, properties, improvements and works at any time owned, controlled or operated by the City as part of the public utility system of the City for water purposes, for the development, obtaining, conservation, production, storage, treatment, transmission, furnishing and distribution of water and its other commodities or byproducts for public and private use ( whether located within or without the City), and any related or incidental operations designated by the City as part of the Water System, including reclaimed and re -purified water.
1. 11 City Water Utility PWP Costs are those Pure Water Program costs allocated to the City' s Water Utility and therefore excluded as Metro System Costs under Section 6. 3 of this Agreement.
1. 12 Contract Capacity is the contractual right possessed by each Participating Agency to discharge wastewater into the Metro System pursuant to this Agreement up to the limits set forth in Exhibit B, Distribution of Wastewater System Capacity Rights, attached hereto.
1. 13 Contract Capacity Transfers shall refer to the capacity transfers initiated based on Metered Flow and Strength data using the methodology set forth in Exhibit E, Methodology for Contract Capacity Transfers, which change a Participating Agency' s Contract Capacity, as set forth more fully in Section 4. 4. 3. 1 and 4.4. 3. 2. These changes will generally be made to a single Participating Agency' s annual Contract Capacity to correct capacity exceedances but can also be made to reduce a Participating Agency' s Contract Capacity.
1. 14 CWA shall mean the San Diego County Water Authority.
1. 15 ECAWP JPA shall mean the East County Advanced Water Purification Joint Powers Authority. The ECAWP JPA itself is not a Participating Agency or a Party to this Agreement.
1. 16 ECAWP JPA Agencies shall mean collectively the City of El Cajon, the Padre Dam Municipal Water District, and the San Diego County Sanitation District.
1. 17 ECAWP Project shall mean the ECAWP JPA' s project to capture and treat wastewater that would otherwise be disposed of in the Metro System to produce an annual average supply of approximately 11. 5 MGD of new local drinking water, as well as other byproducts such as recycled water and energy recovery facilities.
1. 18 Fixed Capacity shall mean the capacities for Monthly Average Daily Flow, Incremental Peak Flow, RSDP, COD and TSS for each agency as set forth in Exhibit B.
1. 19 Fixed Capacity Charge shall mean the charges set forth in Exhibit B that are identified as " Fixed Capacity Charges" that represent the Parties' proportional charges for 4-
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maintaining the Metro System. Items such as debt service are also included in the Fixed Capacity Charges.
1. 20 Flow shall refer to the flow of wastewater discharged by the City and/ or one or more Participating Agency/ ies into the Metro System.
1. 21 Functional Allocated Billing or FAB shall mean the method for distributing all capital, operations, and maintenance Metro System Costs and Revenues on an annual basis by grouping expenses according to their purposes and the current approved Functional -Design Methodology.
1. 22 Functional - Design Methodology shall mean the process of allocating fixed and variable Operation and Maintenance Costs and Capital Improvement Costs to Flow, RSDP and Strength parameters recognizing the benefits of both the design criteria and the primary function of a unit process.
1. 23 Incremental Peak Flow shall mean the Peak Flow minus the Monthly Average Daily Flow.
1. 24 Industrial Wastewater means all wastewater, excluding domestic wastewater, and shall include all wastewater from any producing, manufacturing, processing, institutional, commercial, service, agricultural, or other operation. These may also include wastes of human origin similar to domestic wastewater.
1. 25 Industrial User means a discharger of Industrial Wastewater to a public sewer. A Participating Agency may be an Industrial User.
1. 26 Joint Administrative Approval Process is an approval process authorized by this Agreement by which an Administrative Agreement may be created, revised, supplemented, replaced or terminated, subject to the review and approval process set forth more fully in Section 15.
1. 27 MBC Return shall mean and refer to Centrate created at the Metropolitan Biosolids Center, 5240 Convoy St, San Diego, CA 92111. MBC Return shall contain Metered Flow, TSS and COD.
1. 28 Metered Flow shall mean the amount or volume of wastewater captured by meters that exist throughout the Metro System, estimates from unit count areas, or agreed upon estimates of flows where unit counts are not appropriate. When meters are out of service, estimates can be used to fill in data gaps. These meters, which may or may not be owned by the City, are further defined in Exhibit F, Metro System Flow Formulas and Sampling Locations, which may be amended from time to time.
1. 29 Metro Commission or Metro JPA is the advisory body described under Section 9.
1. 30 Metro System Costs shall mean, at a minimum, those costs set forth in Section 5. 3 and as otherwise set forth in this Agreement.
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1. 31 Metro System Revenues are those revenues set forth in Section 5. 5.
1. 32 Metropolitan Sewerage System or Metro System shall mean and consist of those facilities which are listed, shown and/ or described in Exhibit A, Metro Facilities ( Electronic Exhibit); file name: [ Enter]; time stamp of file, software used to open and view file including version; included herewith as CD- ROMIDV D -ROM, including any amendments thereto authorized by this Agreement. Exhibit A includes current constructed facilities and proposed future facilities.
1. 33 Monthly Average Daily Flow is the number, in MOD, calculated by dividing total Flow on a monthly basis by the number of days in that month.
1. 34 Municipal System shall mean the City' s wastewater collection system, consisting of pipelines and pump stations, which collects wastewater within the City of San Diego and conveys it to the Metropolitan Sewerage System for treatment and disposal.
1. 35 New Contract Capacity shall mean capacity in excess of the Contract Capacity set forth in Exhibit B and authorized subject to Section 3. 3.
1. 36 North City Water Reclamation Plant or NCWRP is the wastewater treatment facility located at 4949 Eastgate Mall in San Diego, which includes four major processes: primary treatment, secondary treatment, tertiary treatment, and disinfection.
1. 37 Operation and Maintenance Costs are the costs to operate, maintain, manage, repair, and keep the Metro System conveyance, disposal, treatment, and reuse facilities functioning in accordance with all applicable laws, rules, and regulations.
1. 38 Participating Agencies shall mean all the local governments and agencies that executed this Agreement other than the City.
1. 39 Peak Flow represents the wastewater flow in millions of gallons of wastewater per day that is captured in the highest 1 - hour period in a fiscal year.
1. 40 Point Loma Wastewater Treatment Plant or PLWTP is the main City wastewater treatment plant with a Monthly Average Daily Flow capacity of 240 million gallons per day and a peak flow capacity of 432 million gallons per day ( as of the date of this Agreement).
It is an advanced primary treatment plant which includes four major processes: screening, grit removal, chemically enhanced sedimentation, and digestion.
1. 41 Pooled Capacity shall refer to the capacity in the Metro system greater than that which has been designated in Exhibit B. Pooled Capacity amounts are shown in Exhibit E, Methodology for Contract Capacity Transfers, and may be recalculated from time to time as set forth more fully in this Agreement.
1. 42 Postage Stamp Methodology is a methodology that can allocate a single uniform cost to any of the annual Contract Capacity cost parameters identified in Exhibit B. This methodology assumes that even though a particular discharger may not utilize all of the infrastructure, all dischargers into the Metro System benefit from the shared infrastructure. 6-
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1. 43 Projected Future Strength and Flow Amounts are the five ( 5) values described below:
1. 43. 1 Projected Future Metro Flow is the estimated amount of Monthly Average Daily Flow, stated in millions of gallons per day ( MGD), that the City and each Participating Agency are projected to have in a designated future year— currently, the 2050 fiscal year. Projected Future Metro Flow for each Party is stated in Exhibit B.
1. 43. 2 Projected Future Incremental Peak Flow is the estimated amount of Annual Incremental Peak Flow, stated in millions of gallons per day ( MGD), that the City and each Participating Agency are projected to have in a designated future year — currently, the 2050 fiscal year. Projected Future Incremental Peak Metro Flow for each Party is stated in Exhibit B.
1. 43. 3 Projected Future RSDP Flow is the estimated amount of RSDP Flow, stated in millions of gallons per day ( MGD), that the City and each Participating Agency are projected to have in a designated future year — currently, the 2050 fiscal year. Projected Future RSDP Flow for each Party is stated in Exhibit B.
1. 43. 4 Projected Future COD Flows is the estimated amount of Chemical Oxygen Demand (COD), stated in pounds per day, that the City and each Participating Agency are projected to have in a designated fiscal year — currently, the 2050 fiscal year. Projected Future COD Flows for each Party are stated in Exhibit B.
1. 43. 5 Projected Future TSS Flows is the estimated amount of Total Suspended Solids (TSS) stated in pounds per day, that the City and each Participating Agency are projected to have in a designated fiscal year — currently, the 2050 fiscal year. Projected Future TSS Flows for each Party are stated in Exhibit B.
1. 44 Pure Water Capital Melded Percentage is the proportionate share stated in Column 7 of Exhibit B ( formerly Column 12 of Exhibit G of the ARA), by which Pure Water Program Capital Improvement Costs, Repurified Water Revenue, and the Capital Expense Rate will be allocated among the City and the Participating Agencies. The Pure Water Capital Melded Percentage is based on each Party' s proportionate share of Projected Future Metro Flow, Projected Future TSS Flows, and Projected Future COD Flows, which proportions are weighted as described in Footnote 5 of Exhibit B.
1. 45 Pure Water Program or PWP is the City' s phased, multi -year program designed to produce up to 83 million gallons per day of Repurified Water using new, expanded, or modified facilities, some of which will include Metro System facilities.
1. 46 PWP Phase I or Phase 1 shall mean the first phase of the Pure Water Program, which modifies/ constructs Metro System and Water Repurification System facilities and is designed to produce an annual average of 30 million gallons per day of Repurified Water.
1. 47 PWP Phase 2 or Phase 2 shall mean the second phase ofthe Pure Water Program which modifies/ constructs Metro System and Water Repurification System facilities and is designed to produce up to an additional annual average of 53 million gallons per day of Repurified Water.
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1. 48 Recycled Water shall have the definition set forth in Title 22, Division 4 of the California Code of Regulations and shall mean water which, as a result of treatment of wastewater, is suitable for a direct beneficial use or a controlled use that otherwise could not occur.
1. 49 Reject Stream from Demineralization Process or RSDP is a flow reject stream and treatment byproduct from a demineralization process at a potable reuse facility. Separately conveyed, it bypasses all secondary wastewater treatment processes. This flow primarily contains liquid and salts.
1. 50 Repurified Water shall mean water which, as a result of advanced treatment of Recycled Water, is suitable for use as a source of domestic (or potable) water supply.
1. 51 Repurified Water Revenue is the cost savings that will be realized when the City' s Water Utility' s annual costs per -acre foot for Repurified Water, including City Water Utility PW Costs, are less than the purchase costs per -acre foot for comparable water from the San Diego County Water Authority, as further described in Section 6.
1. 52 Residuals shall mean RSDP and Centrate. In the future, Residuals may include other waste byproducts ifthe Parties agree in writing that other byproducts may be discharged into the Metro System.
1. 53 South Bay Ocean Outfall or SBOO is the facility that is jointly owned by the International Boundary & Water Commission ( U.S. Section IBWC) and the City. The outfall conveys and discharges treated effluent from the IBWC' s International Wastewater Treatment Plant and treated effluent from the City' s South Bay Water Reclamation Plant. As of the date of this Agreement, the outfall has a current Average Daily Flow Capacity of 174 million gallons per day. As ofthe date of this Agreement, the City owns 39.94% of the capacity of the outfall and the balance ofthe capacity is owned by the IBWC.
1. 54 South Bay Water Reclamation Plant or SBWRP is the wastewater treatment facility located at 2411 Dairy Mart Road in San Diego, which includes four major processes:
primary treatment, secondary treatment, tertiary treatment, and disinfection.
1. 55 Strength means the measurement of Total Suspended Solids and Chemical Oxygen Demand within the Flow and any other measurement required by law after the date of this Agreement or necessary for the Functional Design Methodology.
1. 56 Total Suspended Solids or TSS means the insoluble solid matter in wastewater that is separable by laboratory filtration, as determined by the procedures specified in the most current edition of "Standard Methods for the Examination of Water and Wastewater," or any successor publication which establishes the industry standard.
1. 57 Tertiary Component is that portion of the wastewater treatment process that currently filters the secondary treated wastewater effluent through fine sand and/ or anthracite coal to remove fine suspended solids and disinfects it to meet the requirements of the California Administrative Code, Title 22, or its successor for filtered and disinfected wastewater used for recycled and repurified water,
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1. 58 Two -Party Approval is an approval mechanism under this Agreement that requires the City' s Administrative Approval and a two-thirds ( 2/ 3) vote or greater of the Metro JPA Directors present at a duly noticed Metro JPA public meeting as described more particularly in Section 16.
1. 59 Variable Costs shall refer to the portion of the Functional Design Methodology costs that are allocated based on Metered Flow and Strength.
1. 60 Water Repurification System shall mean any facilities, including treatment and conveyance facilities, the purpose of which is the production or conveyance of Repurified Water.
Water Repurification System includes, but is not limited to: the Tertiary Component of the North City Water Reclamation Plant to the extent being used to produce Repurified Water, the North City Pure Water Facility; the Repurified Water conveyance system, which will transport Repurified Water from the North City Pure Water Facility and/ or other facilities to the Miramar Reservoir or other alternative location( s) as determined by the City; and any other Repurified Water treatment or conveyance facilities which are part of the Pure Water Program. These facilities are constructed and maintained at the expense of the City water utility and are excluded Metro System Costs under this Agreement.
2. OWNERSHIP AND OPERATION OF THE METRO SYSTEM
2. 1 Rights of the Parties. The City is the owner of the Metro System, and any additions to the Metro System or other facilities constructed pursuant to this Agreement. As more particularly set forth in this Agreement, and subject to the terms and conditions ofthis Agreement, the rights of the Parties generally include the following:
2. 1. 1 All decisions with respect to the planning, design, construction, operation and maintenance of the Metro System shall rest with the City, in consultation with the Metro JPA.
2. 1. 2 The Participating Agencies shall have a contractual right to use the Metro System and to participate in its operation.
2. 1. 3 The City may transfer ownership of all or part of the Metro System at any time. In the event of a transfer, including a sale under Section 2. 7, the City' s successor shall be bound by the terms of this Agreement, and the Participating Agencies rights under this Agreement shall not be affected by such a transfer.
2. 1. 4 Any Participating Agency may transfer or assign its rights and obligations under this Agreement. Any transfer shall first be approved by the City. No transfer may occur if the City reasonably determines, after consultation with the Participating Agencies involved, that the proposed transfer will imbalance or adversely impact the City' s ability to operate the Metro System.
2. 2 Metro System Services.
2. 2. 1 The City shall provide wastewater conveyance, treatment and disposal services to the Participating Agencies through the Metro System, under the terms set forth in this Agreement.
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2. 2. 2 The City shall operate the Metro System in an efficient and economical manner, maintaining it in good repair and working order, all in accordance with recognized sound engineering and management practices.
2.2. 3 The City shall convey, treat, and dispose of or reuse all wastewater received under this Agreement in such a manner as to comply with all applicable laws, rules and regulations.
2. 3 Flow Commitment.
2. 3. 1 Subject to the provisions ofthis Agreement and absent a separate agreement of the Parties, all Flow within the capacity limits set forth in Exhibit B or any amendments or changes thereto shall remain in the Metro System.
2. 3. 2 This Agreement shall not preclude any Party from diverting Flow as a result of the construction ofreclamation/reuse facilities or New Capacity outside of the Metro System.
2. 3. 3 Any Participating Agency may negotiate an agreement with the City to reduce all or part of their Contract Capacity. If a Participating Agency reduces its Contract Capacity to zero, that Participating Agency' s rights shall terminate under this Agreement and that Participating Agency shall no longer be considered a member of the Metro JPA. However, the agreement between the City and Participating Agency shall provide that the Participating Agency pays its proportionate share of Capital Improvement Costs for the remainder of the useful life of the facility( ies) constructed during the time the Participating Agency possessed Contract Capacity in the Metro System. This shall include, but is not limited to, any remaining portions of outstanding debt that was incurred for capital facilities during the time the Participating Agency had the right to send Flow into the Metro System, and the cost to disconnect the Participating Agency' s system from the Metro System. Any Contract Capacity that a Participating Agency chooses to relinquish under this section shall be treated as Pooled Capacity after the effective date of an agreement between the City and that Participating Agency. This section does not apply to inter -Agency transfers of Contract Capacity, which involve the relinquished Contract Capacity being assigned to and assumed by another Participating Agency or the City. Inter -Agency transfers are governed by Section 3. 2
2. 3. 4 Flow Projections, Currently, the Projected Future Strength and Flow Amounts are projected to the year 2050 in order to allow the Parties time to plan for future development and growth. However, these projections may be amended from time to time through the Exhibit B amendment processes in this Agreement to more fairly align with actual flow and strength data. The parties shall begin discussion to recalculate the Projected Future Strength and Flow Amounts set forth in Exhibit B by no later than January 1, 2040.
2. 4 Funding Obligations. The City shall fund the acquisition, construction, maintenance andlor operation of the Metro System from monies in ( or sewer revenues which populate) the Sewer Revenue Fund for the Metro System, andlor from construction funds derived from the sale of duly authorized sewer revenue bonds for the Metro System. Nothing in this Section or Agreement shall ( i) obligate the City to make any payment for the acquisition, construction, maintenance or operation of the Metro System from monies derived from taxes or any other income or revenue of the City; (ii) be construed to obligate the City or any Participating 10-
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Agency to pay from its annual income and revenues any sum which would create an indebtedness, obligation or liability within the meaning of the provisions of Section 18 of Article XVI of the Constitution of the State of California and, in the City' s case, San Diego Charter Section 99; or iii) prevent the City, in its discretion, from using tax revenues or any other available revenues or funds of the City for any purpose for which the City is empowered to expend moneys under this Agreement. For the avoidance of doubt, subsections ( i) and ( ii) shall not relieve the City from its obligations to fund the Metro System as provided in this Section 2.4.
2.5 Limitations on Types and Condition of Wastewater,
2. 5. 1 Each Participating Agency shall minimize to the maximum extent practicable, the infiltration and inflow of surface, ground or stormwaters into its respective wastewater systems.
2. 5. 2 Each Participating Agency will ensure that all Industrial Users of its wastewater system are regulated by and comply with the City' s industrial pretreatment program.
City shall not require the Participating Agencies to take any actions against such Industrial Users beyond that which are ( l) required under applicable laws, rules and regulations, ( 2) taken by the City, or ( 3) that can be taken, but are not being taken by the City.
2. 5. 3 City and the Participating Agencies agree that the Interjurisdictional Pretreatment Agreements executed by and between the City and each Participating Agency, as applicable, shall terminate effective upon the date of this Agreement. However, the separate transportation agreements that are currently in effect between or among the City and the Participating Agencies shall remain in effect in accordance with their terms. Each Participating Agency will not discharge wastewater originating outside its respective boundaries into the Metro System without the approval of the City, which shall not be unreasonably withheld.
2. 5. 4 Each Participating Agency shall be responsible for the violation of any applicable laws, rules or regulations associated with its respective discharge of wastewater into the Metro System. Nothing in this Agreement shall affect or prohibit the ability of any Participating Agency to hold third parties responsible for such violations. However, City shall be responsible for enforcement actions related to the violation of any applicable laws, rules, or regulations associated with industrial waste dischargers regulated by City, though each Participating Agency shall collaborate with City when necessary, on any enforcement response for pretreatment violations within a Participating Agency' s jurisdiction. However, the City shall not be responsible for enforcement or monitoring related to a Participating Agency' s compliance with its own NPDES Permit.
2. 5. 5 Food establishments and dischargers of fats, oils, and grease ( FOG) are regulated and monitored by individual Participating Agencies within their jurisdiction.
Participating Agencies are responsible for the provision of FOG programs, services, and enforcement within theirjurisdiction. The City will not provide FOG -related services or programs outside ofthe City' s jurisdiction.
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regulatory requirements, ( collectively, " Enforcement Actions") relating to the conveyance, treatment, or disposal of wastewater in or from the Metro System or operation of the Metro System, the City shall determine as part of its investigation and response to the notice of violation whether the City or a Participating Agency or Agencies caused or contributed to the violation for reasons which may include, without limitation, exceeding their Contract Capacity, the contents of their wastewater, or the failure to maintain or operate the Metro System or a Participating Agency' s system. Any costs associated with an Enforcement Action including but not limited to fines, penalties, corrective measures, and costs of defense ( collectively, " Penalty( ies)") shall be shared by the Participating Agencies and the City proportionately based on Fixed Capacity as set forth in the then current Exhibit B, unless the City determines, based on verifiable facts, that the violation for which the Penalty is imposed was caused by, or was the result of, gross negligence or willful misconduct of the City or a Participating Agency.
2. 6. 1 For any Enforcement Actions ( 1) related to sanitary sewer overflows of 10, 000, 000 gallons or more from the Metro System occurring after the effective date of this Agreement, or ( 2) that the City reasonably anticipates will result in the Participating Agencies' collective responsibility for the Penalties imposed to exceed 10% of the Metro Participating Agencies combined annual operations and maintenance budget for the Metro System for the fiscal year in which the Penalty is imposed (" Threshold Amount"), the City' s determination will be subject to review by the Metro JPA as set forth in 2. 6. 1. 1 through 2.6. 1. 8 below. The scope ofthe Metro JPA' s review shall be limited to whether the violation for which the Penalty is imposed was caused by, or was the result of, gross negligence or willful misconduct ofthe City or a Participating Agency, and if so, how the Penalty should be fairly allocated. For all other Enforcement Actions, the City' s determination related to the allocation of Penalty shall be final.
2. 6. 1. 1 The City will provide a copy of any report submitted to a regulatory agency in response to an Enforcement Action to the Metro JPA within 30 days of submitting that report to the regulatory agency. In that same communication, the City will also provide a summary of the City' s findings regarding causation and preliminary determination regarding the allocation of any Penalties. Ifthese determinations have not been made, the City will provide an anticipated date that the information will be provided.
2. 6. 1. 2 If the Metro JPA disputes the City' s determination as to the allocation, as evidenced by a vote approved by two-thirds of the Metro JPA Directors present at a duly noticed meeting, it shall notify the City in writing of the same within 90 days of receiving the City' s preliminary allocation determination.
2. 6. 1. 3 The City and representatives of the Metro JPA shall meet and confer to discuss the matter and try to reach an agreement on the appropriate allocation. To facilitate resolution, the meet and confer process shall be treated as a settlement discussion under the California Evidence Code and shall be a confidential process. The meet and confer process shall focus on whether the violation for which the Penalties are being imposed is the result, in whole or in part, of the gross negligence or willful misconduct of the City or a Participating Agency, and if so, how the Penalties shall be allocated.
2. 6. 1. 4 If through the meet and confer process, the City determines that the Participating Agencies' collective responsibility for the Penalties imposed will be less than the 12-
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Threshold Amount, then the City will inform the Metro JPA of this determination and allocate the Penalty as such, and no further action by the Metro JPA is required.
2. 6. 1. 5 If through the meet and confer process, the City and representatives of the Metro JPA reach an agreement, and the Participating Agencies' collective responsibility for the Penalties imposed will be equal to or greater than the Threshold Amount, then that agreement shall be subject to the Two -Party Approval process. The City and representatives of the Metro JPA shall have an opportunity to present the proposed agreement to the Metro JPA before a vote on the determination.
2. 6. 1. 6 If the City and representatives of the Metro JPA are unable to reach an agreement and Participating Agencies' collective responsibility for the Penalties imposed is equal to or exceeds the Threshold Amount, the City will make a final determination regarding allocation of the Penalty and present the determination to the Metro Commission.
2. 6. 1. 7 In the event that Two Party Approval is required but is not achieved, each Participating Agency shall pay the portion of the Penalty allocated to them at the time that it is invoiced, however, such payment may be made under protest. The Parties shall engage in the dispute resolution procedures under this Agreement to resolve the issue, prior to any Party having the right to initiate litigation.
2. 6. 1. 8 Penalties in excess ofthe Threshold Amount shall be separated out in the reconciliation billing and notated as a spill penalty with reference to the first day of the spill associated with the penalty.
2. 7 Right of First Refusal -
2. 7. 1 The City shall not sell or agree to sell the Metro System without first offering it to the Participating Agencies. For the purposes ofthis section, " Participating Agencies" shall mean a Participating Agency, a group of Participating Agencies, or a third party representing one or more Participating Agencies. The term " sell" shall include any transfer or conveyance of the Metro System or of any individual treatment, collection, or reclamation facility or outfall within the Metro System.
2. 7. 2 The City and the Participating Agencies recognize that transfer of ownership of the Metro System is currently restricted by Sections 6. 04 and 6. 20 of the Installment Purchase Agreement between the City and the Public Facilities Financing Authority of the City, which inter alia restricts the transfer of ownership to the Metropolitan Wastewater Sewage District or other governmental agency whose primary purpose is to provide wastewater treatment. The City shall not seek to impose on bond holders a waiver ofSection 6.04 or 6.20. Absent such a restriction, before the City sells or agrees to sell the Metro System, or any portion of it, the City shall offer to sell the Metro System to the Participating Agencies ( the " Offer") on the terms and at a price equal to that proposed for the sale of the Metro System to a third party. The City shall provide all Participating Agencies with written notice of the Offer per Section 13 . The Participating Agencies shall have ninety ( 90) days from the date of mailing of the Offer (the " Intent to Respond Period") in which to notify the City of their intent to respond to the Offer. If a Participating Agency or Agencies notify the City of their intent to respond to the Offer, that Participating Agency or those 13-
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Agencies shall have five months from the expiration of the Intent to Respond Period in which to accept or reject the Offer. The Offer shall contain the name of the proposed purchaser, the proposed sale price, the terms of payment, the required deposit, the time and place for the close of escrow, and any other material terms and conditions on which the sale is to be consummated. If no Participating Agency or Agencies notifies the City of its ( or their) intent to respond to the Offer within the Intent to Respond Period, the City may move forward with the sale ofthe Metro System without further notice to the Participating Agency in accordance with Section 2. 7. 3 below.
2. 7. 3 If the Participating Agencies give timely notice of their intent to respond and timely notice of their acceptance ofthe Offer, then the City shall be obligated to sell and the Participating Agencies shall be obligated to purchase the Metro System or any individual treatment, collection or reclamation facility or outfall within the Metro System, as applicable, at the price and on the terms and conditions of the Offer. Ifthe Participating Agencies do not give timely notice of their intent to respond or their acceptance of the Offer, or do not submit an offer on the same terms and conditions as the Offer, the City may, following the end of the Offer period, sell the Metro System, or any portion of it, at a price and on terms and conditions no less favorable to the City than those in the Offer. The City shall not sell the Metro System to any third party on terms or at a price less favorable to the City from the terms and price contained in the Offer absent compliance with the terms ofthis Section. The City' s sale of the Metro System under Section 2. 7, is a transfer of ownership subject to Section 2. 1. 3.
2. 7. 4 Nothing herein shall prevent the City from entering into a financing agreement which may impose limits on the City' s power to sell the Metro System to the Participating Agencies pursuant to Section 2. 7. 1 if the City reasonably believes that such a financing agreement is in the City' s best interest. Neither the entry into such a financing agreement by the City nor the performance thereof by the City shall constitute a breach or default by the City hereunder.
2. 8 Uniform Enforcement of Pretreatment Program by City. The Parties have determined that it is in their best interests for a single agency to be responsible for management of the pretreatment program for the Metro System in order to: ( a) Ensure protection of the entire Metro System, including the successful operation of the Pure Water Program; ( b) Provide consistent and uniform regulation of Industrial Users, including those subject to pretreatment requirements; ( c) Provide for transparent and fair cost recovery from all dischargers; and d) Promote efficiency and accountability in the administration of the Metro System. For these reasons, the Parties are delegating pretreatment responsibilities to the City, except regulation of Food Establishments and FOG dischargers, as more fully set forth in this Agreement and in Administrative Agreement # 1 Between City of San Diego and Participating Agencies for the Unified Management of Industrial Waste Discharge Pretreatment and Enhanced Source Control Programs (" Administrative Agreement # 1"). Notwithstanding the above, the City may enter into supplementary agreements with an individual Participating Agency, or a group of Participating Agencies, relating to industrial waste discharge pretreatment and enhanced source control programs unique to such Participating Agency( ies), so long as the supplementary agreement incorporates a separate cost proportional to the participation of such Participating Agency or group of Participating Agencies that is the sole responsibility of such Participating Agency(ies). 14-
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2. 8. 1 Delegation of Authority. Each Participating Agency shall and hereby does delegate to City full authority and responsibility to operate, manage, and enforce an effective pretreatment program throughout the Metro System to ensure that all Industrial Users are subject to uniform rules and regulations, with direct billing to Industrial Users by the City to begin on the first July 1 following execution of this Agreement.
2. 8. 2 Operations and Maintenance. Procedures relating to the operation, management, enforcement, and cost recovery for the pretreatment program are set forth in Administrative Agreement # 1.
2. 8. 3 Amending Pretreatment Program Procedures. Administrative Agreement 1 may be amended from time to time as set forth in Section 15. In the event of any conflict between this Agreement and Administrative Agreement # 1, the terms of this Agreement shall control.
2. 8. 4 Adoption of Local Ordinances. By no later than June 30 following the Effective Date of this Agreement, every Participating Agency shall adopt a local ordinance conforming with the sample ordinance contained in Administrative Agreement # 1 and the City' s pretreatment ordinance, each as amended from time to time, to ensure consistency throughout the Metro System.
2. 8. 5 Identification of New Industrial Users. Participating Agencies shall notify the City of any identified potential new Industrial Users within their respective boundaries while the City will bear responsibility for inventory assessments on a regular basis as set forth in Administrative Agreement # 1.
2. 8. 6 Permitting and Permit Compliance. Nothing in this Agreement shall be construed to relieve any discharger to the Metro System of the responsibility to obtain and comply with any required permits for, and to comply with rules and regulations applicable to, dischargers to the Metro System. If the City determines that an Industrial Wastewater Control Program Permit is required, it shall issue the permit subject to the City' s permit requirements. The City' s approval or denial of any application for, or revocation of, an Industrial User Permit shall be in accordance with Chapter 6, Article 4 ofthe San Diego Municipal Code as well as any other applicable federal, state or local regulations, any published City guidance related to the Industrial Wastewater Control Program, and the City' s Enforcement Response Plan, all as may be amended, renumbered, or renamed from time to time. The City and any Participating Agency may elect to coordinate and combine issuing their wastewater discharge permits to Industrial Users when deemed appropriate by both parties. Any agreement between the City and the Participating Agencies related to permitting under the Industrial Wastewater Control Program, shall not transfer responsibility to City for any other type of permitting outside of the City' s jurisdiction, or subject any local agency as that term is defined in California Government Code section 53090, to local building and zoning ordinances that the local agency is not otherwise legally subject to.
2. 8. 7 Inventory of Industrial Users. City shall create and maintain an inventory of all Industrial User within the Metro System as soon as reasonably practicable following execution of this Agreement. The Participating Agencies shall review the inventory and shall notify the City 15 -
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of an Industrial User( s) in its jurisdiction that is not identified on the inventory as set forth in Administrative Agreement # 1.
2. 8. 8 Evaluation, Monitoring, Enforcement and Program Review. Upon the effective date of this Agreement, it shall be the City' s right and obligation to carry out pretreatment evaluation, permitting, monitoring and/ or enforcement throughout the Metro System consistent with the procedures set forth in Administrative Agreement # 1. The City' s pretreatment program review shall occur as necessary, but no less than once every five (5) years. Nothing herein shall be construed as prohibiting any Participating Agency from enforcement of its own pretreatment ordinance within its jurisdiction.
2. 8.9 City' s Direct Billing of Industrial Users. The City shall directly bill Industrial User throughout the Metro System to recover costs associated with the pretreatment program as set forth in Administrative Agreement # 1. The City Council shall set and approve such costs in a publicly noticed meeting pursuant to the procedures set forth in Administrative Agreement # 1.
2. 9 Wastewater Generated at Military Bases. The City may contract directly with federal military bases that are connected to the Metro System for wastewater services and capacity subject to the terms of this Section 2.9. If a United States military base is located within a Participating Agency' s jurisdiction, the Participating Agency may request that the City bill that military base directly as a separate and distinct customer. In the event the City agrees to accept the military' s wastewater and bill the military base as a separate and distinct customer, then ( 1) the Participating Agency shall have no billing obligations with respect to the military base; ( 2) each Participating Agency whose sewage line conveys the military base' s wastewater reserves the right to negotiate and charge the federal government a conveyance or transportation fee for use ofthat Participating Agency' s sewer line; ( 3) the City shall require that the military base comply with the applicable City pretreatment rules; and ( 4) the City agrees that the wastewater generated by the military base shall not be considered wastewater of the Participating Agency with respect to capacity once the City enters into an agreement with the military base. Any transfers of capacity that are appropriate or necessary to accommodate flow from military bases, if needed, would be governed by Section 3. 2 herein, " Inter -Agency Transfers of Contract Capacity."
CAPACITY RIGHTS
3. 1 Contract Capacity. Each Participating Agency shall have the contractual right to discharge wastewater to the Metro System up to the limits set forth in Exhibit B (" Contract Capacity"). Each Party' s Contract Capacity as stated in Exhibit B, is used for the purpose of allocating the Metro System' s Pure Water Program Capital Improvement Costs, Repurified Water Revenue, and the Capital Expense Rate under this Agreement.
3. 2 Inter -Agency Transfers of Contract Capacity. The Participating Agencies and the City may buy, transfer, sell or exchange all or part of their Contract Capacity among themselves on such terms as they may agree upon, subject to the following:
3. 2, 1 Any Party requesting to buy, transfer, sell, or exchange all or part of their Contract Capacity (" Inter -Agency Transfer") shall provide a written proposal to the City 16-
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including the proposed terms of such Inter -Agency Transfer. The Party requesting the Inter - Agency Transfer shall also provide notice to all other Participating Agencies under Section 13 concurrently with submitting the proposal to the City.
3. 2. 2 All Participating Agencies will have 45 days to provide any technical input to the City regarding the proposed Inter -Agency Transfer. Any Participating Agency providing technical input shall provide a copy of such input to all other Participating Agencies under Section 13 concurrently with submitting the input to the City.
3. 2. 3 Upon receipt of a request for an Inter -Agency Transfer, the City will review the request, consult with the affected Participating Agencies, and consider any technical input provided by other Participating Agencies.
3. 2. 4 All proposed purchases, transfers, sales or exchanges of Contract Capacity require the City' s Administrative Approval prior to becoming effective. No Contract Capacity may be transferred if the City determines that said transfer will imbalance, or will otherwise adversely impact the City' s ability to operate the Metro System. Provided, however, that the Participating Agency seeking the transfer may offer to cure such imbalance at its own expense. If the Participating Agency makes such an offer, the City may not unreasonably withhold Administrative Approval.
3. 2. 5 If the City approves the offer as proposed, the City shall adjust the Contract Capacity set forth in Exhibit B per Section 3. 6 to reflect the approved changes. If the City determines, after taking the steps in Section 3. 2. 3 that an Inter -Agency Transfer may be approved ifthe request is modified, the City will provide a written notice to all Participating Agencies of the modified Inter -Agency Transfer under Section 13 no less than 30 days prior to the Inter -Agency Transfer becoming effective. Such modified Inter -Agency Transfer will become effective 30 days following the written notice being provided, and the City will prove an updated Exhibit B per Section 3. 6 reflecting the approved changes.
3. 2. 6 If a Participating Agency reduces its Contract Capacity to zero through an Inter -Agency Transfer, that Participating Agency' s rights under this Agreement shall terminate and that Participating Agency shall no longer be a member of the Metro JPA. The Participating Agency shall remain responsible for all outstanding financial obligations under this Agreement, unless the Inter -Agency Transfer Agreement assigns those obligations to the Participating Agency accepting the transfer and that agency assumes those obligations. Outstanding financial obligations include, but are not limited to, a Participating Agency' s proportionate share of Capital Improvement Costs for the remainder of the useful life of the facility( ies) constructed during the time the Participating Agency possessed Contract Capacity in the Metro System, including any remaining portions of outstanding debt incurred for capital facilities during the time the Participating Agency had the right to send Flow into the Metro System, and the cost to disconnect the Participating Agency' s system from the Metro System.
3. 3 New Contract Capacity. The Parties recognize that the Metro System may be modified to create capacity in the Metro System beyond that set forth in Exhibit B as a result of the construction of additional facilities, acquisition of facilities, increased flows, or as required by regulatory or similar such action. If capacity in excess of the Contract Capacity (" New Contract 10- 23- 25
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Capacity") is required or requested by a Party, the Parties shall negotiate in good faith to provide the needed or requested capacity. Ifthe Parties agree to provide New Contract Capacity, they shall memorialize the agreement for New Contract Capacity in an Administrative Agreement subject to the Joint Administrative Approval Process set forth in Section 15. If the parties execute an Administrative Agreement for New Contract Capacity, Exhibit B shall also be adjusted pursuant to Section 3. 6 to reflect the New Contract Capacity.
3. 4 Reductions in Metro System Capacity. The Parties further recognize that Metro System Capacity may be reduced to comply with, or in response to, applicable permit conditions, or related regulatory action, or sound engineering principles. In the event that the capacity of the Metro System is re -rated to levels below the numbers reflected in the Totals Line set forth in Exhibit B, then the Contract Capacity shall be reallocated proportionately among the Parties based on the percentages of fixed ownership set forth in Exhibit B at that point in time, subject to the City' s Administrative Approval and amendment of Exhibit B.
3. 5 Restrictions on Veto of Transfers and Acquisitions of Capacity. Each Party understands and agrees that no Participating Agency has a right to veto or prevent the transfer of capacity between other Participating Agencies or the City, nor the creation or acquisition of new capacity for another Participating Agency or Agencies. By signing this Agreement, each Participating Agency is expressly preapproving such actions. The sole right of a Participating Agency to object to any of the foregoing shall be through expression of its opinion to the Metro JPA and, where applicable, through exercise of its rights under the dispute resolution provisions of this Agreement.
3. 6 Amendments to Exhibits B. Ifthe City determines that an amendment to Exhibit B is required for any reason other than a request from a Participating Agency under Sections 2. 3. 3 and Sections 3. 2, and that reason only requires the City' s Administrative Approval, the City shall prepare and circulate to all Participating Agencies the proposed amendment to Exhibit B within 60 days of determining such an amendment is necessary. The Participating Agencies will have sixty ( 60) days to provide comments to the City, and all comments submitted to the City by a Participating Agency shall also concurrently be submitted to all other Participating Agencies. The City will review all comments received, prepare final amendments to Exhibit B to reflect adjustments in Contract Capacity, and circulate the final amended Exhibit B by no later than sixty ( 60) days after the City' s Administrative Approval. If the amendment to Exhibit B requires an approval process other than the City' s Administrative Approval, the Parties will follow the required approval process, and once that is completed, the City will prepare and provide the final version of Exhibit B within 60 days ofthe completion ofthe approval process. The City shall note each amendment and amendment date in the Exhibit List and shall keep an updated version of Exhibit B on file with the City Public Utilities Department at all times. An amendment to Exhibit B shall not be retroactive, except as provided in Section 4.4. 3. 3.
3. 7 The South Bay Ocean Outfall. Nothing in this Agreement shall limit the City' s right to transfer capacity rights in assets that are not a part of the Metro System, including without limitation that portion of the South Bay Ocean Outfall which is not part of the Metro System.
SEE
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4. FINANCE, BUDGETING, AND ACCOUNTING: PAYMENT AND
MONITORING PROVISIONS
4. 1 Payment for Metro System Facilities. Through the system of charges set forth in Section 5 of this Agreement, each Participating Agency shall pay its share ofthe costs of planning, design and construction of all of the Metro System facilities which are identified in Exhibit A.
4. 2 Payment for Additional Metro System Facilities. Through the system of charges set forth in Section 5 of this Agreement, each Participating Agency shall pay its share of the costs of acquisition, planning, design and construction of such facilities, in addition to those set forth on Exhibit A, as are necessary to ( a) convey, treat, dispose, and reuse wastewater in the Metro System; b) provide the Contract Capacity set forth in Exhibit B; and ( c) maintain hydraulic capacity as otherwise required by sound engineering principles. Each Participating Agency shall pay its share of the costs necessary to ensure the Metro System maintains compliance with applicable laws, rules and regulations, including the Ocean Pollution Reduction Act of 1994 and its successor(s), as well as present and future waivers of applicable treatment standards at any Metro System treatment facility. Exhibit A may be amended to reflect replaced or rehabilitated facilities, or changes in facilities, subject to the City' s Administrative Approval; however, ifthe City proposes to add a new Metro facility to Exhibit A, or convert a City facility to a Metro facility that will be added to Exhibit A, then each such amendment shall be ( 1) subject to the City' s Administrative Approval, in its sole discretion, when the addition or conversion is for the purpose of complying with applicable laws, rules, or regulations; or ( 2) supported by an independent third -party study setting forth the benefits to the Metro System of each new facility, including a cost allocation for capital and projected annual maintenance costs if the addition or conversion is for any other purpose. For any new Metro facility or conversion of a City facility to a Metro facility proposed to be added or converted under ( 2) above, any such proposal must be memorialized in an Administrative Agreement subject to the Joint Administrative Approval Process set forth in Section 15. Once approved, the City shall amend Exhibit A accordingly and shall give notice of any amendments to all Participating Agencies. The City shall keep an updated version of Exhibit A on file with the City Public Utilities Department. Exhibit A may be amended to reflect other changes to the Metro System only as expressly provided in this Agreement.
4. 3 Payment for Operation and Maintenance. Through the system of charges set forth in Section 5 of this Agreement, each Participating Agency shall pay its share of the Operation and Maintenance Costs of all Metro System facilities. The Participating Agencies shall not pay for the Operation and Maintenance Costs of the Water Repurification System, which are City Water Utility PW Costs.
4. 4 Charges Based on Flow. Strength and Fixed Capacity: Exception.
4. 4. I Except as otherwise described in this Section 4. 4, a Participating Agency' s share of the charges in this Section 4 shall be based on its proportionate Flow, Strength, and Fixed Capacities as set forth in Exhibit B, as described more fully in Section 5.
4. 4. 2 Notwithstanding Section 4.4. 1, or any other provision of this Agreement, a Participating Agency' s share of PWP Phase I Capital Improvement Costs, PWP Phase t Repurified Water Revenue, and Pure Water Program Capital Expense Rate attributable to the 19-
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Metro System as described in Sections 6. 6 and 6. 7 shall be assessed or credited based on the Parties' proportionate share of the Pure Water Capital Melded Percentages set forth in Column 7 of Exhibit B. The City shall annually allocate the estimated and actual PWP Phase 1 Capital Improvement Costs and revenues which are attributable to the Metro System in proportion to each Party' s Pure Water Capital Melded Percentages as set forth in Column 7 of Exhibit B when estimating quarterly payments and conducting year- end adjustments.
4. 4. 3 Each Party recognizes that operation within respective Projected Future Strength and Flow Amounts is essential to the accurate allocation of costs and revenues under the Pure Water Program. In recognition of same, the Parties agree as follows:
4. 4. 3. 1 Contract Capacity Transfers — Increases in Fixed Capacity Components. Beginning in the next fiscal year after the effective date ofthis Agreement, if a Party exceeds their Capacity Rights or any individual component of the Capacity Rights set forth in Exhibit B, by any one of the following triggers based upon data available at the completion of a fiscal year: ( 1) Three percent ( 3%) in a fiscal year for any two consecutive fiscal years, ( 2) One MGD in a fiscal year for any two consecutive fiscal years, or ( 3) The equivalent Strength of one MGD in a fiscal year for any two consecutive fiscal years; then, the City shall prepare an amendment to Exhibit B that reflects a Contract Capacity Transfer for that Party based on the available information about such Party' s exceedance( s) and the methodology set forth in Exhibit E.
After Phase 2 is completed, if, due to contract capacity transfers or reductions in capacity, the Pooled Capacity drops to less than two percent ( 2%) of the total Contract Capacity, a capacity study shall be initiated to evaluate existing facilities for new capacity. The City shall thereafter amend Exhibit B under the process set forth in Section 3. 6 to reflect the new Contract Capacity for all Parties. Any changes to the methodology in Exhibit E shall be made pursuant to an Administrative Agreement subject to the Joint Administrative Approval Process described in Section 15.
4. 4. 3. 2 Contract Capacity Transfers — Decreases in Fixed Capacity Components. Beginning in the next fiscal year after the effective date ofthis Agreement, if a Party can show through an independent report that its Monthly Average Daily Flow, annual average pounds per day of COD, annual average pounds per day of TSS, Incremental Peak Flow, or RSDP is projected to decrease ten percent ( 10%) or more below their Projected Future Strength and Flow Amounts using data from a minimum of three ( 3) consecutive prior fiscal years as support, then City shall prepare a proposed amendment to Exhibit B that reflects the new Projected Future Strength and Flow Amounts for all Parties based on such Party' s decrease and other relevant information using sound engineering principles and the guidelines set forth in Exhibit E. The City' s proposed amendment shall be subject to the Two -Party Approval Process. If approved, the City shall thereafter amend Exhibit B using the process set forth in Section 3. 6.
4.4. 3. 3 If Exhibit B is amended to update one or more Parties' Projected Future Strength and Flow Amounts pursuant to Section 4.4. 3. 1 or 4.4. 3. 2, the change in Projected Future Strength and Flow Amounts shall be effective retroactively to the beginning of that fiscal year, and the City shall use the updated amounts in estimating quarterly payments and conducting year-end adjustments for Pure Water Program costs and revenues. Therefore, any Party that underpaid based on prior Exhibit B Fixed Capacity amounts ( which were based on prior Projected Future Strength and Flow Amounts) shall pay the retroactive amount due in quarterly installments 24-
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in its quarterly payments the following fiscal year; any Party that overpaid based on previous Exhibit B Fixed Capacity amounts shall receive a credit in quarterly installments in its quarterly payments the following fiscal year. Notwithstanding the preceding sentence, if the retroactive amount due exceeds 20% of a Party' s average annual Metro System payments for the previous four (4) fiscal years, such Party may elect to pay the retroactive amount due in its quarterly payments over the subsequent four ( 4) fiscal years, with interest, based on the most recent quarterly earnings rate of the City' s Treasurer' s Pooled Rate of Return; any Party that overpaid in an amount that exceeds 20% of their annual average Metro System payments for the previous four ( 4) fiscal years based shall receive a credit in its quarterly payments spread over the following four (4) fiscal years.
4. 5 Monitoring Flow and Strength.
4. 5. 1 The City shall monitor Flow and Strength. The City shall own and operate as part of the Metro System monitoring devices which will measure the amount of Flow discharged into the Metro System, unless otherwise agreed by the City and a Participating Agency. These devices shall be installed at locations appropriate to accurately monitor Flow and Strength. The City may also monitor Flow and Strength at other locations as it deems appropriate. For all currently unmetered areas, unit counts or agreed upon flow estimates where unit counts are not appropriate shall be used. For adding or subtracting unit count areas, the average current Metro Flow per unit shall be used consistently for all Parties. These unmetered unit counts will be updated at least once every five ( 5) years. If the flow in an unmetered area is over 0.5 MGD at a specific connection point, then a meter shall be added for that area, if possible. Exhibit F provides the Flow formulas that shall be used to determine the payment obligation for each Party, or a grouping or subgrouping of Parties, as applicable. Exhibit F shall be distributed to all Parties with the budget estimates that are sent annually pursuant to Section 5. 7. 1. The City currently provides all Participating Agencies with access to their data from the Flow metering devices, including providing access to their raw data, and will continue to do so according to the Parties' established practices on the Effective Date of this Agreement. Changes to Exhibit F may be made upon the City' s Administrative Approval.
4. 5. 2 in measuring Strength, the frequency and nature of the monitoring shall not be more stringent for the Participating Agencies than it is for the City. The frequency, nature, and locations of Strength measurements, as well as the procedures used to determine Strength, shall be reviewed at least once every five ( 5) years and if changes are appropriate or required, the City may change the Strength measurements subject to the Two -Party Approval process. When conducting sampling within a Participating Agency' s service area, the City shall follow appropriate safety and security measures. The City and Participating Agencies will coordinate with the Participating Agency' s operations staff to ensure facilities are not negatively impacted by inspections.
4. 5. 3 The City shall report Strength data to the Participating Agencies at least quarterly.
4. 5. 4 The City shall notify the Metro JPA' s Executive Director and any directly affected Participating Agency within 24 hours of any unpermitted or unlawful discharge or release of effluent from the Metro System which may be reportable to the Regional Board, or any other regulatory agency, and which may result in civil or criminal penalties or administrative 21 -
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enforcement proceedings pursuant to Water Code sections 13251, et seq., section 13300, et seq., Government Code section 54740 et seq., or other provisions of law. Upon request from the Metro TPA or a Participating Agency, City shall provide the Metro JPA or affected Participating Agencies with copies of all non -privileged related correspondence to and from the Regional Board. The City shall endeavor to confer with Metro JPA staff during the report preparation process and before any report is submitted to a regulatory or enforcement agency.
5. FINANCE, BUDGETING, AND ACCOUNTING: SYSTEM OF CHARGES
5. 1 Charges Authorized. The City agrees to implement, and the Parties agree to abide by a system of charges called Functional Allocated Billing (FAB). This system allows the City to equitably recover from all Participating Agencies their proportional share ofthe net Metro System Costs described in this section:
5. 2 Functional Allocated Billing ( FAD). The City shall annually determine the FAB rate based on the projected Metro System Costs ( as defined below) for the forthcoming fiscal year, less all Metro System Revenues ( as defined below).
5. 2. 1 Calculation of FAB Rates.
5. 2. 1. 1 The City shall determine the unit FAB rates by allocating net costs Metro System Costs less Metro System Revenues) between the fixed and measured variable parameters of Capacity Rights, such as Monthly Average Daily Flow, Incremental Peak Flow, COD, TSS, and RSDP as set forth in Exhibit B. These allocations are based on the approved Functional - Design Methodology analyses for sewer system components and estimated Operation and Maintenance ( O& M) Costs allocated to each parameter.
5. 2. 1. 2 Beginning one ( 1) year after substantial completion of the final project of Phase 1 of the Pure Water Program for which sewer revenue funds were used, the City shall have the FAB, which includes the Functional Design Methodology, professionally reviewed at least once every five ( 5) years.
5. 2. 1. 3 After conducting a professionally developed independent third - party report, the City may propose to change the FAB, including the Functional Design Methodology, to include any other parameter, or modify any term governed by this Section 5. 2. 1, by way of an Administrative Agreement subject to the Joint Administrative Approval Process set forth in Section 15. However, the City may revise the FAB, including the Functional Design Methodology at any time to include any other measurement required by law after the effective date of this Agreement subject to the City' s Administrative Approval, in its sole discretion, City will notify all Participating Agencies of any such review or revision no later than sixty ( 60) days after City' s Administrative Approval. Once approved, the FAB resulting from any review or revision under this Section will become the current approved version until it is revised by a future professional independent third -party study or a change in law.
5. 2. 1. 4 Each ofthe parameters will have a fixed and variable O& M charge between 0% and 100%. Fixed Capacity Charges will be based on the Contract Capacity in Exhibit B. Variable charges will be based on measured parameters such as Metered Flow, Strength and RSDP.
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5. 2. 1. 5 Costs for capital improvements, capital replacement, and rehabilitation costs including financing shall be based on the approved Functional -Design Methodology and the Contract Capacity in Exhibit B.
5. 2. 1. 6 The net cost allocated to each of the parameters shall be divided by the total Metro System quantity for that parameter to determine the unit rates for each parameter.
These unit rates shall apply uniformly to all Parties.
5. 3 Metro System Costs. The following shall at a minimum be considered Metro System Costs for purposes of calculating the annual FAB rate:
5. 3. 1 Except as provided in Section 5. 4 ( Excluded Costs), the annual Operation and Maintenance Costs and annual costs associated with administration, replacement, annual debt service costs and other periodic financing costs and charges, capital improvement, insurance premiums, claims payments and claims administration costs of the Metro System, including projected overhead, shall be calculated using generally accepted accounting practices to reflect the costs of the Metro System.
5. 3. 2 Fines or penalties imposed on the City as a result of the operation of the Metro System, unless the fine/ penalty is allocated to the City or a Participating Agency as provided in Section 2. 5. 5.
5. 4 Excluded Costs. The following items shall not be considered Metro System Costs for purposes of calculating the annual FAB rate:
5. 4. 1 Costs related to the City of San Diego' s municipal sewer, water ( including City Water Utility PWP Costs), and/ or stormwater systems as determined by City' s reasonable calculations consistent with sound engineering and best management practices.;
5. 4. 2 Right- of-way charges for the use of public streets of the City or any Participating Agency. The City and the Participating Agencies agree not to impose a right -of- way charge for the use of its public rights -of -way for Metro System purposes;
5. 4. 3 Capital Improvement Costs or Operations and Maintenance Costs of any non -Metro System facility not included in Exhibit A, including, but not limited to, any costs associated with the ECAWP Project;
5. 4. 4 Those costs otherwise identified as excluded costs in Section 6. 3.
5. 5 Metro System Revenues and Allocations. The following revenues shall be at a minimum considered Metro System Revenues for purposes of determining the annual FAB rate:
5. 5. 1 Any grant or loan receipts or any other receipts that are attributable to the Metro System or Metro System components ofthe Pure Water Program, including, but not limited to, all compensation or receipts from the sale, lease, or other conveyance or transfer of any asset of the Metro System or Metro System components ofthe Pure Water Program. Any such receipts attributable to the Metro System components ofthe Pure Water Program shall be allocated among 10- 23- 25
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the City and the Participating Agencies in the proportions set forth in Exhibit B Fixed Capacity amounts.
5. 5. 2 All compensation or receipts from the sale or other conveyance or transfer of any Metro System byproducts, including, but not limited to, gas, electrical energy, sludge products, and Recycled Water produced at the NCWRP and SBWRP and the future Central Area Plant.
5. 5. 3 Payments by the City' s Water Utility for the Capital Expense Rate, as calculated under provisions in Section 6. 7. These proceeds shall be allocated among the City and Participating Agencies in the proportions set forth in Exhibit B Fixed Capacity amounts.
5. 5. 4 Those portions of Repurified Water Revenue attributable to the Metro System, as calculated under provisions in Section 6. 6. 3. These revenues shall be allocated among the City and Participating Agencies in the proportions set forth in Exhibit B Fixed Capacity amounts.
5. 5. 5 Any other non -operating revenues, including, but not limited to interest income included in the income credit portion of the annual audit.
5. 6 Excluded Revenue. The following revenues shall be excluded from Metro System Revenues for purposes of determining the annual FAB rate:
5. 6. 1 Proceeds from the issuance of debt for Metro System projects.
5. 7 Estimate and Billing Schedule and Year End Adjustment.
5. 7. 1 The City shall estimate the FAB rates on an annual basis prior to January 15 and provide budget estimates for the upcoming fiscal year to all Parties. The City shall quantify the FAB rates by estimating the quantity of Flow, Strength, and Fixed Capacity Charges for each Party, based on that Party' s Metered Flow for the past year and the cumulative data of sampling for Strength constituents such as COD and TSS over the preceding five years and Fixed Capacities set forth in Exhibit B. Ifthe cumulative five- year Strength data is no longer indicative of discharge from a Party, and a Contract Capacity Transfer has been approved pursuant to Sections 4.4. 3. 1,
4.4.3. 2, or 3. 2, then the City may eliminate the previous higher readings subject to the City' s Administrative Approval.
5. 7. 2 Prior to March i ofeach year the City will provide a mid -year review of the current year' s Metro System Capital Improvement Costs and Operations and Maintenance Costs and offsetting non -operating revenues such as grant or loan proceeds, including fiscal year-end projections and provide such reviews to the Participating Agencies.
5. 7. 3 The City shall determine the volume of MBC Return on an annual basis and for billing purposes only. The costs of treating MBC Return shall be allocated to the Parties in proportion to their Metered Flow and Strength. If a Party' s Monthly Average Daily Flow plus MBC Return exceeds their Contract Capacity set forth in Exhibit B, it shall not be treated as an exceedance pursuant to Section 4.4. 3. 1.
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5. 7. 4 The City shall bill the Participating Agencies quarterly, invoicing on August 1, November 1, February 1 and May 1. Each bill shall be paid within thirty ( 30) days of mailing. Quarterly payments will consist of the total estimated cost for each Participating Agency, based on their estimated Flow, Strength, and Fixed Capacity Charges, divided by four.
5. 7. 5 At the end of each fiscal year, the City shall determine the actual Metro System Costs and the actual Metered Flow as well as the cumulative Strength data for the City and each ofthe Participating Agencies. The City shall make any necessary adjustments to the unit rates for Flow and Strength such as COD, TSS and Fixed Capacity Charges based on actual costs for the year as determined through the annual audit process in Section 5. 8. 2 of this Agreement. The City shall then recalculate the FAB rate for the year using actual audited costs for the year, actual Metered Flow, Residuals, MBC Return, cumulative Strength factors, and Fixed Capacity Charges for the City and for each Participating Agency. The City shall credit any future charges or bill for any additional amounts due against the quarter after the prior year costs have been audited.
5. 8 Financial Statements.
5. 8. 1 The City shall keep records and accounts of all costs and expenses relating to conveyance, treatment, disposal, and reuse of wastewater, and production of Repurified Water, and the acquisition, planning, design, construction, administration, monitoring, operation and maintenance ofthe Metro System and Water Repurification System, and any grants, loans, or other revenues received therefor. The City shall keep such records and accounts for at least four (4) years after the completed audit, or for any longer period required by law or outside funding sources.
5. 8. 2 Annual Audit. Said records and accounts shall be subject to reasonable inspection by any authorized representative of any Participating Agency at its expense. Further, said accounts and records shall be audited annually by an independent certified public accounting firm appointed by the City. A copy of said report shall be available to any Participating Agency.
As part of said audit, the actual amount of City Water Utility' s PW Costs, Pure Water Program costs attributable to the Metro System, Repurified Water Revenue, and the Capital Expense Rate shall be determined and audited by the City' s external auditors and Participating Agency representatives, and a cumulative and annual summary of such amounts shall be included as a footnote or attached to the audit of the Metro System. Cost summaries shall include separate lines for Capital Improvement Costs and Operation and Maintenance Costs.
5. 8. 3 The City shall make a good faith effort to complete the annual audit, and any related adjustments under this Agreement as described in Section 5. 8.2, by the end of the following fiscal year.
5. 9 Debt Financing. The City retains the sole right to determine the timing and amount of debt financing required to provide Metro System Facilities. The annual debt service plus in - progress Capital Improvement Costs to maintain capacity in and of the Metro System shall be allocated to the Participating Agencies consistent with the Exhibit B Contract Capacity allocations effective on the date the debt is issued. If a Participating Agency wishes to prepay Capital Improvement Costs, and the City is able to accommodate such a request, then a Participating Agency may prepay their proportional share of Capital Improvement Projects. If a Participating Agency wishes to withdraw or reduce their Flows and/ or Strengths from the Metro System per 25-
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Section 2. 3. 3 of this Agreement, such agency will remain responsible for its pro -rata share of all outstanding debt incurred at the time the debt was issued until it is satisfied, irrespective of withdrawal, reduction in Flows and/ or Strengths, orAgreement expiration. Ifthe City refunds debt, it shall allocate such refunds consistent with the Exhibit B Contract Capacity allocations effective on the date the debt was issued.
5. 10 Allocation of Operating Reserves and Debt Service Coverage. The Parties shall continue to comply with the protocol set forth in Exhibit C, Administrative Protocol on Allocation of Operating Reserves and Debt Service Coverage to Participating Agencies, which exhibit may be amended from time to time consistent with Section 5. 11.
5. 11 Amending the System of Charges. Except as otherwise provided in Section 5. 2. 1. 6, the Parties may amend any provision in this Section 5 regarding the Finance, Budgeting, and Accounting System of Charges in an Administrative Agreement subject to the Joint Administrative Approval Process set forth in Section 15.
FINANCE, BUDGETING, AND ACCOUNTING: PURE WATER PROGRAM
COST ALLOCATION AND REVENUES — PHASE I
6. 1 North City Water Reclamation Plant Modification. As part of Phase 1 of the Pure Water Program, the City intends to modify the North City Water Reclamation Plant ( a Metro System facility) and expand its capacity to 52 MGD. In addition, the City intends to construct the North City Pure Water Facility on a nearby site to produce Repurified Water. This Section sets forth the costs and revenues associated with the Pure Water Program attributable to the Metro System. Exhibit A includes current constructed Metro System facilities and existing and proposed future Phase 1 facilities.
6. 2 New, Expanded or Modified Metro System Facilities. Each new, expanded, or modified Metro System facility, which is part of the Pure Water Program, and is used in relation to the production of Repurified Water ( in addition to the modification and expansion ofthe North City Water Reclamation Plant) shall be governed by this Section.
6.3 Costs Excluded from Metro System Costs — Phase 1. All of the following Pure Water Program costs, including Capital Improvement Costs, Operation and Maintenance Costs, and other related costs ( including administration, insurance, claims, and overhead) shall be excluded from Metro System Costs for purposes of calculating the annual FAB rate.
6. 3. 1 General Exclusions:
6. 3. 1. 1 Costs of the Water Repurification System and any Metro System facilities to the extent constructed, modified, expanded, or used for the purpose of treating wastewater beyond secondary treatment ( ocean discharge standard under current law). This shall include costs for preliminary treatment, primary treatment, and secondary treatment to the extent such costs are higher than they would otherwise be due to the production of Repurified Water.
6. 3. 1. 2 Costs for fail- safe disposal, if necessary, for design capacity for Repurified Water, including, but not limited to, any costs associated with the reservation of capacity at the Point Loma Wastewater Treatment Plant.
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6. 3. 1. 3 Costs for the demolition or replacement of existing Metro System facilities with similar facilities for the purpose of making space available for Water Repurification System facilities. Such costs may consider the current asset value or market value of the existing Metro System facility.
6. 3. 2 Cost Exclusions Specific to North City Water Reclamation Plant Improvements:
6. 3. 2. 1 Costs for increased aeration tank volume to the extent the new volume exceeds the amount necessary to provide 52 MGD capacity. Determination of sizing to provide 52 MGD capacity shall be based on the current tank volume necessary to provide 30 MGD capacity.
6. 3. 2. 2 Costs for the methanol feed system.
6.3. 2. 3 Costs for RSDP disposal, including, but not limited to, pump stations, pipelines, retreatment, ocean outfall, and monitoring.
6. 3. 2. 4 Costs for the use of existing tertiary water filters for Repurified Water purposes. Such costs may consider the depreciated value of such filters or use such other appropriate valuation methods as agreed by the City and authorized representatives of the Metro JPA. Costs under this section shall be reimbursed or credited by City' s Water Utility to the Metro System.
6. 4 North City Water Reclamation Plant Improvement Costs Included as Metro System Costs. Notwithstanding the above exclusions, the City and the Participating Agencies have specifically agreed that the following Capital Improvement Costs and Operation and Maintenance Costs related to North City Water Reclamation Plant improvements shall be included as Metro System Costs for purposes of calculating the annual FAB rate ( and therefore not qualify as City Water Utility PW Costs):
6. 4. 1 Costs for chemically enhanced primary treatment for up to 52 MGD capacity.
6.4. 2 Costs for primary effluent equalization for up to 52 MGD capacity.
6. 4. 3 Costs for increased volume of aeration tanks that will provide up to, but not exceeding, 52 MGD capacity.
6. 4.4 Costs to add secondary clarifier tanks sufficient for up to 52 MGD capacity.
6. 4. 5 Costs for wastewater conveyance facilities to provide wastewater for replacement of Centrate flows that cannot be treated at the North City Water Reclamation Plant due to the production of Repurified Water.
6. 4. 6 Costs for treatment and conveyance of all MBC Return ( micro -filtration and tertiary backwash) based on Flow, COD, and TSS.
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6. 5 Reallocation of PWP Costs incurred since FY 2014.
6. 5. 1 The allocation of Pure Water Program costs, retroactive to June 30, 2014, will be calculated the year the Agreement goes into effect, will be completed no less than two fiscal years following the production of 30 MGD by Phase I of the Pure Water Program.
6. 5. 1. 1 All the O& M task orders, or costs that cannot be directly assigned to a PWP Phase 1 capital improvement project such as program management, environmental documents, etc., will be reallocated by the final water/ wastewater cost split, and will include interest accruing since June 2014 at the interest rate earned by the City of San Diego for each applicable fiscal year as shown by the sample interest calculation included in Exhibit G, Sample ofInterest Calculation. This postpones the reconciliation of costs until the substantial completion of all construction projects for Phase 1 ( City Water Utility PW Costs and Metro). This reconciliation will be performed during the audit of the fiscal year in which substantial completion of all projects occurs.
6. 5. 1. 2 All Phase 1 PWP CIP projects were bid and awarded by October 2022 which is FY2023. All shared Phase 1 CIP projects will be reallocated to the actual construction cost split once the project is awarded, and the cost loaded CPM is completed and negotiated between the City and the Participating Agencies during the FY2023 audit. All CIP soft costs incurred since 2014 will be reallocated like the O& M task orders during the audit of the year of substantial completion of the actual Phase 1 CIP projects. If interest is owed to the Metro System for soft costs starting in FY 2014, such interest shall be considered Metro System Revenues consistent with Section 5. 5. 5.
6. 6 Revenue Sharing for Repurified Water.
6. 6. 1 Background. Initially, the Parties anticipate that the cost per acre foot associated with the production of Repurified Water will be more expensive than the cost per acre foot of untreated imported water. However, it is anticipated that Repurified Water produced under Phase I will be less expensive than untreated imported water sometime in the future. Once Repurified Water produced under Phase 1 becomes less expensive than the cost of untreated imported water, the Parties agree that there will be revenue from the Pure Water Program.
6.6.2 Calculation. Revenue sharing shall occur in each fiscal year during which the annual cost per acre foot associated with the production of Repurified Water is less than the cost of untreated water per acre foot from the San Diego County Water Authority (" CWA"). The annual cost difference shall be known as " Repurified Water Revenue." Repurified Water Revenue shall be determined as follows:
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Annual cost per acre foot of CWA untreated water purchased by the City for delivery at Miramar Reservoir ( which shall be determined based on the total costs for water actually billed to the City by CWA for water delivered at Miramar Reservoir in a fiscal year, divided by the number of acre- feet of CWA water delivered at Miramar Reservoir that year)
less
Annual cost per acre-foot of City Water Utility PW Costs ( which shall be determined based on total annual City Water Utility PW Costs divided by the number of acre- feet of Repurified Water actually produced in that year) the result of which is multiplied by
The number of acre feet of Repurified Water produced by Pure Water Program facilities during the applicable fiscal year.
Exhibit H, Summary of Billings from County Water Authority Showing Costs for Untreated Water, is a summary of the most recent CWA rate structure and cost allocations to the City of San Diego for untreated water. The Parties agree that Exhibit H shall be referred to by the Parties in the future in determining how costs for water delivered at Miramar Reservoir are calculated. If no untreated water is delivered at Miramar Reservoir in a given year, then the closest point of delivery of untreated water to the City shall be used. The City shall annually update Exhibit H to reflect the most recent CWA rate structure and cost allocations to the City of San Diego.
The City shall estimate whether there will be Repurified Water Revenue in the upcoming fiscal year prior to January 15 ofeach year, and these amounts shall be incorporated into the budget estimates for the upcoming fiscal year to all Parties.
6.6. 3 Revenue Sharing. Repurified Water Revenue shall initially be shared between the City' s Water Utility and the Metro System based on the relative actual Capital Improvement Costs for the Pure Water Program contributed by City' s Water Utility and the Metro System. Such Capital Improvement Cost contributions are currently estimated as 62% City' s Water Utility and 38% Metro System. The Metro System' s portion of the Repurified Water Revenue shall be applied to debt attributable to the Metro System first, until the debt attributable to the Metro System is fully paid.
Following full payment of debt attributable to the Metro System, Repurified Water Revenue shall be shared based on the relative actual Operation and Maintenance Costs for Pure Water Program facilities contributed by City' s Water Utility and the Metro System, calculated annually. Such Operation and Maintenance Costs are currently estimated as 76% City' s Water Utility and 24% Metro System on an annual basis.
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In all instances referred to in this Section 6. 6. 3, the Metro System portion of the Repurified Water Revenue shall be allocated among the City and the Participating Agencies consistent with Section 4.4. 2.
6. 6, 4 Year -End Adjustment. At the end of each fiscal year during which there is Repurified Water Revenue, the City shall determine the actual cost per acre foot of CWA untreated water purchased by the City, the actual cost per acre foot of City Water Utility PW Costs, and the actual amount of Repurified Water produced at Pure Water Program facilities.
Based on the actual cost and production information, the City will recalculate the Repurified Water Revenue for the prior fiscal year. The City will credit any future charges or bill for any additional amounts due the quarter after the prior year costs have been audited.
6. 6. 5 Change in Potable Reuse Method. The Parties acknowledge that the Pure Water Program Phase 1 will initially use indirect potable reuse surface water augmentation. The use of CWA untreated water costs in calculating Repurified Water Revenue is intended to provide an appropriate point of comparison to costs for producing Repurified Water that will be introduced into surface water. The Parties agree that ifthe City desires to implement direct potable reuse ( in which Repurified Water would be introduced directly into a water supply pipeline or facility), the Parties shall meet and negotiate in good faith regarding an amendment to this Section 6. 6, to appropriately update the formula for Repurified Water Revenue, which form of amendment shall occur via an Administrative Agreement and shall be subject to the Joint Administrative Approval Process set forth in Section 15.
6. 7 Capital Expense Rate.
6. 7. 1 Background. The Point Loma Wastewater Treatment Plant operates under a National Pollutant Discharge Elimination System (" NPDES") permit modified under section 301( h) & ( j)(5) of the Clean Water Act. If such modified permit were ever revoked or not renewed, the Parties agree that, under current law, the City would have an obligation to upgrade the PLWTP to secondary treatment. The Parties further agree that $ 1. 8 billion is a fair and comprehensive estimation of the costs that could be incurred by the Metro System to meet the legal requirements related to the Metro System under current law. The estimate of $ 1. 8 billion is based on the net present value of the capital cost to develop 180 MOD of secondary treatment at PLWTP as of November 15, 2018.
Therefore, the Parties agree that $ 1. 8 billion represents the maximum amount of Capital Improvement Costs that the Metro System should be obligated to contribute to the Pure Water Program, the purpose of which is not solely the disposal of wastewater, but also the production of Repurified Water, The Parties agree that this $ 1. 8 billion maximum contribution should apply whether or not the PLWTP is actually upgraded to secondary treatment to meet legal requirements in the future because, as of the date of the Agreement, the Parties have the option of upgrading the PLWTP to full secondary treatment for the cost of approximately $ 1. 8 billion.
In light of the above, the Parties have agreed that if Metro System costs related to the Pure Water Program exceed the $ 1. 8 billion, City' s Water Utility will pay a charge for each acre foot 30-
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of secondary treated effluent produced by Metro System facilities and used for the production of Repurified Water.
6. 7.2 Capital Expense Rate. Under the circumstances described in this Section 6. 7, City' s Water Utility shall pay a charge (" Capital Expense Rate") for each acre- foot of secondary treated effluent produced by Metro System facilities and used for the production of Repurified Water. The Capital Expense Rate costs or revenues attributable to the Metro System shall be assessed or credited consistent with Section 4. 4. 2. City' s Water Utility shall pay the Capital Expense Rate if the following costs alone, or in combination, exceed $ 1. 8 billion ( which amount shall be adjusted for inflation):
6. 7. 2. 1 The sum of all Capital Improvement Costs and associated debt attributable to the Metro System components of the Pure Water Program under this Section 6. 7. 2; and/ or
6. 7. 2. 2 The sum of all Capital Improvement Costs and associated debt for the full or partial upgrading of the PLWTP to secondary treatment.
Notwithstanding the above, the Capital Expense Rate shall not apply if the PLWTP is actually upgraded to secondary treatment ( or beyond) due to: ( a) a change in federal or state statutory law making it necessary to upgrade the PLWTP to comply with such new discharge standard; or ( b) a final decision by a state or federal court or a federal administrative agency of competent jurisdiction that an NPDES permit modified under section 301( h) & G)( 5) of the Clean Water Act is thereby revoked or denied renewal due to a finding that the discharge from the PLWTP violates anti -degradation rules or regulations promulgated under section 403 of the Clean Water Act.
6. 7. 3 Calculation of Capital Expense Rate. The amount per acre- foot of the Capital Expense Rate shall be determined as follows:
The sum of all Capital Improvement Costs and associated debt attributable to ( i) the Metro System components of the Pure Water Program under this Section 6 and ( ii) upgrading of the PLWTP to secondary treatment (if any) less
1. 8 billion, as adjusted for inflation each July 1 ( starting on July 1, 2019) to reflect the annual percentage change in the Engineering News Records — Los Angeles construction cost index
the result ofwhich is multiplied by
1. 42 ( which estimates the total interest on a 30 -year State Revolving Fund loan with an interest rate of 2. 5%)
the result of which is divided by
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The total number of acre feet per year of secondary treated effluent that is expected to be produced by Metro System facilities for the production of Repurified Water over a period of thirty ( 30) years.
The City shall estimate whether the Capital Expense Rate shall apply to the upcoming fiscal year ( and its amount) prior to January 15 of each year, and the estimated amount of the Capital Expense Rate shall be effective on July 1 of the upcoming fiscal year.
For purposes of this Section 6. 7. 3, Capital Improvement Costs and associated debt shall include such costs and revenue incurred by the Metro System prior to the effective date of the Agreement.
6. 7. 4 Year -End Adjustment. At the end of each fiscal year during which the Capital Expense Rate applies, the City shall determine the actual Capital Improvement Costs and associated debt attributable to the Metro System components of the Pure Water Program under this Section 6 and any upgrading ofthe PLWTP to secondary treatment, and the actual amount of secondary treated effluent produced by Metro System facilities and used for the production of Repurified Water.
Based on the actual cost, interest, and effluent information, the City will recalculate the Capital Expense Rate for the prior fiscal year. The City will credit any future charges or bill for any additional amounts due the quarter after the prior year costs have been audited.
6. 7. 5 Duration, Expiration. The Capital Expense Rate shall continue until the cost difference between ( a) the actual sum of Pure Water Program Capital Improvement Costs and associated debt attributable to the Metro System under Section 6. 7 and/ or the costs to upgrade the PLWTP and ( b) $ 1. 8 billion ( as adjusted for inflation), has been fully paid, or the Agreement expires, whichever is sooner. Notwithstanding, it is the express intent and desire of the City and the Participating Agencies that if the Agreement expires before the cost difference has been paid through the Capital Expense Rate, that the Capital Expense Rate continue in any extension of this Agreement negotiated by the Parties pursuant to Section 14. 2 until the cost difference has been fully paid.
6. 8 Amending Pure Water Program Cost Allocation and Revenues — Phase 1. Except as otherwise provided in Section 6. 6. 2, the Parties may amend any provision in this Section 6 regarding the Finance, Budgeting, and Accounting for the Pure Water Program Cost Allocation and Revenues for Phase 1 in an Administrative Agreement subject to the Joint Administrative Approval Process set forth in Section 15,
7. FINANCE, BUDGETING, AND ACCOUNTING: PURE WATER PROGRAM COST ALLOCATION AND REVENUES — PHASE 2
7. 1 Pure Water Program — Phase 2. The Second Phase of the Pure Water Program Phase 2") shall create up to an additional 53 MGD of Repurified Water at Phase 2 facilities. The Parties agree to incorporate all terms relating to Phase 2 into this Agreement through an Administrative Agreement subject to the Joint Administrative Approval Process set forth in Section I5, subject to the requirements set forth in this Section 7 below. 32-
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7. 2 Costs Excluded As Metro System Costs.
Costs Excluded from Metro System Costs for Phase 2 shall be identified in an Administrative Agreement subject to the Joint Administrative Approval Process and approvals set forth in Section 15. However, the Administrative Agreement must reflect that all ofthe following PWP Phase 2 costs, including Capital Improvement Costs, Operation and Maintenance Costs, and other related costs ( including administration, insurance, claims, and overhead) shall be excluded from Metro System Costs for the purposes of calculating the annual Phase 2 FAR rate, and shall be City Water Utility PW Costs:
7. 2. 1 Costs of the Phase 2 Water Repurification System and any Metro System facilities to the extent constructed, modified, expanded, or used for the purpose of treating water beyond secondary treatment ( ocean discharge standard under current law). This shall include costs for preliminary treatment, primary treatment, and secondary treatment to the extent such costs are higher than they would otherwise be due to the production of Phase 2 Repurified Water.
7. 2. 2 Costs for fail- safe disposal, if necessary, for design capacity for Phase 2 Repurified Water, including, but not limited to, any costs associated with the reservation of capacity at the Point Loma Wastewater Treatment Plant.
7. 2. 3 Costs for the demolition or replacement of existing Metro System facilities with similar facilities for the purpose of making space available for Phase 2 Water Repurification System facilities. Such costs may take into account the current asset value or market value of the existing Metro System facility.
7. 2.4 Costs for the Phase 2 methanol feed system.
7. 2. 5 Costs for Phase 2 RSDP disposal including, but not limited to, pump stations, pipelines, retreatment, ocean outfall, and monitoring.
7. 2. 6 50% of the costs for the MBR Tanks and system for Phase 2.
7. 2. 7 All membrane integrity monitoring systems for Phase 2.
7. 2. 8 All Phase 2 systems downstream of MBR' s.
7. 3 Revenue Sharing for Repurified Water — Phase 2. Terms regarding revenue sharing for Repurified Water for Phase 2 shall be identified in an Administrative Agreement subject to the Joint Administrative Approval Process set forth in Section 15. However, this Administrative Agreement must reflect terms related to Phase 2 revenue sharing for Repurified Water that conceptually mimic those terms set forth in Section 6.6. The Metro System portion of the Repurified Water Revenue for Phase 2 shall be allocated among the City and the Participating Agencies consistent with Section 4.4. 2, as may be amended or updated to account for changes in PWP Phase 2.
7. 4 Capital Expense Rate --- Phase 2. Terms regarding the Capital Expense Rate for Phase 2 shall be identified in an Administrative Agreement subject to the Joint Administrative Approval Process and approvals set forth in Section 15. However, this Administrative Agreement 33-
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must reflect terms that conceptually mimic the terms in Section 6. 7, reflecting a continuation of the Capital Expense Rate through Phase 2 up until the PWP achieves up to 83 MGD of Repurified Water, taking into account production of water suitable for potable reuse occurring at all treatment processes for wastewater upstream from and at the PLWTP. The Pure Water Program Capital Expense Rate costs or revenues attributable to the Metro System shall be assessed or credited consistently with Section 4.4.2, as may be amended or updated to account for changes in PWP Phase 2.
8. FUTURE NEGOTIATIONS AND COOPERATION
This Agreement specifically contemplates Phase l and Phase 2 of the Pure Water Program, which consists of new, expanded, or modified Metro System and Water Repurification System facilities projected to produce up to 83 million gallons per day of Repurified Water. The Parties intend to meet and negotiate in good faith regarding the referenced Administrative Agreements identified in this Agreement. All items outside the scope of the Joint Administrative Approval Process shall be negotiated by the Parties through the amendment processes described in Section 16. 3, if necessary.
9. THE METRO COMMISSION
9. 1 Establishment and Membership. The 1998 Agreement created and established and the ARA reestablished) the Metro Commission as a commission consisting of one representative from each Participating Agency. On October 25, 2000, the Participating Agencies entered into a Joint Exercise of Power Agreement which created a separate public entity, the Metro Wastewater Joint Powers Authority (' Metro . IPA"), for the purpose, among others, of taking responsibility, actions, and making decisions pertaining to the 1998 Agreement on behalf of the Participating Agencies. The Metro Commission and the Metro JPA are and shall hereinafter be treated as one and the same entity for all intents and purposes under this Agreement, including for the purpose of accepting and executing the responsibilities delegated to the Metro JPA in this Agreement. Each Participating Agency shall have the right to appoint a representative ofits choice to the Metro Commission/ Metro JPA, and the Participating Agency' s appointee to the Metro Commission shall also serve as that Participating Agency' s representative on the Metro JPA Board of Directors. If a Participating Agency is a dependent district whose governing body is that of another independent public agency, that Participating Agency shall be represented on the Metro Commission/ Metro JPA by a representative appointed by the governing body which shall have no more than one representative no matter how many Participating Agencies it governs. Each member has one vote in any matter considered by the Metro Commission/ Metro JPA. The Metro Commission/ Metro JPA shall establish its own meeting schedule and rules of conduct. The City may participate in the Metro Commission on an ex officio, non -voting basis. To the extent this Agreement expands or amends the powers or purposes set forth in the Metro JPA Joint Exercise of Powers Agreement, the Participating Agencies expressly agree to such expansion or amendment consistent with the terms of this Agreement.
9.2 Advisory Responsibilities of Metro JPA.
9. 2. 1 The Metro JPA shall act as an advisory body to the Mayor and City Council on policy issues and matters affecting and relating to the Metro System and shall be included in 34-
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the City' s list of boards and commissions on the City' s website. The City shall present the position of the majority of the Metro JPA to the City' s governing body in written staffreports. The Metro JPA may prepare and submit materials in advance and may appear at any City hearings on Metro System matters and present its position to the governing body of the City.
9. 2. 2 The Metro JPA may advise the City of its position on any issue relevant to the Metro System.
9. 3 Delegation of Decision -Making Authority of the Metro JPA. The Participating Agencies hereby delegate to the Metro JPA the authority to take certain actions pursuant to the approval processes provided in this Agreement, as permitted by law, including but not limited to Government Code 6506. The Participating Agencies agree that the Metro JPA has delegated authority to approve Administrative Agreements on behalf of each Participating Agency pursuant to the process set forth in Section 15. The Participating Agencies agree and acknowledge that the Metro JPA has authority to bind each Participating Agency to Administrative Agreements through the Joint Administrative Approval Process. All Participating Agencies agree to promptly execute Administrative Agreements after approval by the Metro JPA. By signing this Agreement, each Participating Agency is expressly preapproving such actions.
9. 4 Standing. If a dispute arises among the Parties relating to or arising from a Party' s obligation under this Agreement or an associated Administrative Agreement, the Metro JPA shall have standing to enforce the terms of this Agreement against the City on behalf of two or more Participating Agencies if a majority of the Metro JPA votes to take action relating to this Agreement on behalf oftwo or more Participating Agencies.
10. DISPUTE RESOLUTION
This Section governs all disputes arising out of this Agreement and any associated Administrative Agreements.
10. 1 Mandatory Non -Binding Mediation. If a dispute arises among the Parties relating to or arising from a Party' s obligations under this Agreement or an associated Administrative Agreement that cannot be resolved through informal discussions and meetings, the Parties involved in the dispute shall first endeavor to settle the dispute in an amicable manner, using mandatory non -binding mediation under the rules of JAMS, AAA, or any other neutral organization agreed upon by the Parties before having recourse in a court of law. Mediation shall be commenced by sending a Notice of Demand for Mediation to the other Party or Parties to the dispute. A copy of the notice shall be sent to the City, all other Participating Agencies, and the Metro JPA.
10. 2 Selection of Mediator. A single mediator that is acceptable to the Parties involved in the dispute shall be used to mediate. The mediator will be knowledgeable in the subject matter of this Agreement, if possible, and chosen from lists furnished by JAMS, AAA, or any other agreed upon mediator.
10. 3 Mediation Expenses. The expenses of witnesses for either side shall be paid by the Party producing such witnesses. All mediation costs, including required travel and other expenses 35-
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of the mediator, and the cost of any expert advice produced at the direct request of the mediator, shall be Metro System costs.
10. 4 Conduct of Mediation. Mediation hearings will be conducted in an informal manner.
Discovery shall not be allowed. The discussions, statements, writings and admissions and any offers to compromise during the proceedings will be confidential to the proceedings ( pursuant to California Evidence Code sections 1115 - 1128 and 1152) and will not be used for any other purpose unless otherwise agreed by the Parties in writing. The Parties may agree to exchange any information they deem necessary. The Parties involved in the dispute shall have representatives attend the mediation who are authorized to settle the dispute, though a recommendation of settlement may be subject to the approval of each agency' s boards or legislative bodies. Either Party may have attorneys, witnesses or experts present.
10. 5 Mediation Results. Any resultant agreements from mediation shall be documented in writing. The results of the mediation shall not be final or binding unless otherwise agreed to in writing by the Parties. Mediators shall not be subject to any subpoena or liability and their actions shall not be subject to discovery.
10. 6 Performance Required During Dispute. Nothing in this Section shall relieve the City and the Participating Agencies from performing their obligations under this Agreement. The City and the Participating Agencies shall be required to comply with this Agreement, including the performance of all disputed activity and disputed payments, pending the resolution of any dispute under this Agreement.
11. INSURANCE
11. 1 City Shall Maintain All Required Insurance.
1 1. 1. 1 Throughout the term of this Agreement the City shall procure and maintain in effect liability insurance covering Metro System assets and operations in the same manner, and to the same extent, as the City insures similar assets and operations of the City. Such insurance may be provided through separate policies for the Metro System, or by consolidating the Metro System with other City assets and operations for insurance purposes. Ifthe Metro System is insured separately, policy limits, deductibles, and self -insured retentions shall be equivalent to what the City procures for other similar City assets and operations. The City shall maintain all insurance required by law, including workers' compensation insurance, and may self -insure for certain losses when allowed by law. The proportionate cost of insurance for the Metro System shall be included in the computation of the FAB.
11. 1. 2 Ifthe Metro System is insured separately, any policy or policies ofliability insurance carried by the City for the Metro System shall name the Participating Agencies as additional insureds with evidence of same supplied to each upon request.
11. 1. 3 Upon request by the Metro .IPA or a Participating Agency, the City shall promptly provide written coverage and policy information, including, but not limited to, the scope of coverage, policy limits, deductibles, and self -insured retentions, including information on any claims made against the policies and remaining limits and deductibles. 36-
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11. 2 Substantially Equivalent Coverage. In the event of a transfer of the Metro System to a nonpublic entity pursuant to Section 2. 1, coverage substantially equivalent to all the above provisions shall be maintained by any successor in interest.
12. INTERRUPTION OF SERVICE
Should the Metro System services to the Participating Agencies be interrupted as a result of a major disaster, by operation of federal or state law, or other causes beyond the City' s control, the Participating Agencies shall continue all payments required under this Agreement during the period of interruption.
13. NOTICES REQUIRED UNDER AGREEMENT
The City and each Participating Agency shall give notice when required by this Agreement.
All notices required by this Agreement must be in writing and must be sent via email and either served personally or mailed via first class U.S. mail, The notices shall be sent to the officer listed for each Party, at the address and email address listed for each Party in Exhibit D, Notice Listing, in accordance with this Section. If a Party wishes to change the officer and/ or address to which notices are given, the Party shall notify all other Parties in accordance with this Section. Upon such notice, the City shall amend Exhibit D to reflect the changes. The amendment shall be made within sixty ( 60) days after receipt of the Party' s notice regarding the change in officer and/ or address.
The City shall keep an updated version of Exhibit , notated with the most recent amendment date, on file with the City Public Utilities Department. The City shall provide a copy of the amended Exhibit D to all Parties by no later than sixty ( 60) days after amending Exhibit D.
14. EFFECTIVE DATE AND EXPIRATION
14. 1 Effective Date. This Agreement shall be effective on July 1 of the fiscal year commencing after execution by the City and all of the Participating Agencies and shall be dated as of the signature date of the last executing Party. For example, irrespective of whether the last executing Party signs this Agreement on September 1, 2025, January 1, 2026, or June 30, 2026, the effective date ofthe Agreement would be July 1, 2026.
14. 2 Expiration. Subject to the rights and obligations set forth in Section 14. 3, unless amended, replaced, or terminated earlier by mutual consent of all the Parties, this Agreement shall expire on June 30, 2065. This Agreement is subject to extension by agreement of the Parties. The Parties shall commence discussions on an agreement to provide wastewater treatment services beyond the year 2065 on or before December 31, 2055, or at such time, if any, that the PLWTP is required to be upgraded to secondary treatment. The Parties may create, amend or terminate any associated Administrative Agreements addressing implementation of this Agreement, as provided in this Agreement.
14. 3 Contract Capacity Rights Survive Expiration. The Participating Agencies' Contract Capacity rights and rights to obtain wastewater treatment services from the facilities referred to in, or constructed pursuant to this Agreement shall survive the expiration ofthe Agreement. Provided, however, for any Participating Agency to exercise such rights, the Participating Agency shall comply with all the following requirements: ( a) provide at least six months' written notice prior to the expiration of this Agreement; ( b) upon expiration of this Agreement, pay their proportional 37-
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share of Metro System Costs according to the billing methodologies set forth in this Agreement in order to maintain their right( s) to such wastewater treatment services; and ( c) agree to recalculate and pay proportional share of future Metro System Costs based on the City' s and all remaining Participating Agencies' proportionate shares. In the event this Agreement expires and one or more Participating Agency( ies) continue to pay their proportional share of all Metro System Costs, the City shall have the right to continue managing, operating, and expanding the Metro System subject to the same terms set forth in this Agreement, unless otherwise agreed to in writing by and between the City and a Participating Agency. In the event one or more Participating Agency( ies) exercise its/ their right( s) to maintain Contract Capacity and wastewater treatment services, such Participating Agency( ies) shall also maintain the right to continue receiving any and all revenues contemplated by this Agreement, including, but not limited to, Metro System Revenues.
14. 4 Abandonment. After June 30, 2065, the City may abandon operation of the Metro System upon delivery of notice to the Participating Agencies ten ( I0) years in advance of said abandonment. Upon notice by the City to abandon the Metro System, the Parties shall meet and confer over the nature and conditions of such abandonment. In the event the Parties cannot reach agreement, the matter shall be submitted to mediation under Section 10. In the event of abandonment, the City shall retain ownership of all Metro System assets free of any claim of the Participating Agencies. Abandonment by the City with continued operation by a different entity shall not terminate or affect a Contract Capacity rights of a Participating Agency so long as that Participating Agency has continued to pay their proportional share of Capital Improvement Costs and Operation and Maintenance Costs according to the billing methodologies set forth in this Agreement. Nothing in this language shall be construed to require the City to continue as operator of the Metro System after the ten- year ( 10) notice period has run.
15. ADMINISTRATIVE AGREEMENTS
15. 1 Use and Process for Administrative Agreements.
15. 1. 1 Purpose. Administrative Agreements are intended to implement the intent of the Parties in an efficient and effective manner without reopening or renegotiating the terms of this Agreement. Administrative Agreements are limited to addressing issues that are authorized by this Agreement. Administrative Agreements are separate and distinct from Exhibits to this Agreement, and are designed to address procedural, operational, technical, and administrative issues. Terms in this Agreement may only be modified through the Joint Administrative Approval Process ifthis Agreement expressly authorizes the use of an Administrative Agreement.
15. 1. 2 AmendmentsSupplements. or Successors to Administrative Agreements.
Where this Agreement refers to an Administrative Agreement, such reference shall include any amendment( s) to that Administrative Agreement or supplemental or successor Administrative Agreement( s).
15. 1. 3 Function. Administrative Agreements are made among all the Parties but deal with a specific function or group of like functions, for the benefit of regional wastewater treatment within the Metro System, or for the implementation of this Agreement. 38-
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15. 1. 4 Current Agreements. The Administrative Agreements which are approved and executed simultaneously with the execution of this Agreement are listed Exhibit I, List of Administrative Agreements. The City shall update Exhibit I each time an Administrative Agreement is approved, amended, revised or terminated pursuant to this Agreement.
15. 1. 5 Development and Joint Administrative Approval Process. Any Party can present an Administrative Agreement, or an amendment or supplement thereto, or termination thereof, to the City for approval by way of the Joint Administrative Approval Process set forth in this Section. The City will endeavor in good faith to respond within 60 days of submission of a proposed Administrative Agreement. If the City needs additional time to evaluate the proposed Administrative Agreement, it will advise all Participating Agencies in writing of the anticipated review time. Once an Administrative Agreement receives City' s Administrative Approval, then, with respect to the Participating Agencies, the proposed Administrative Agreement may be presented to the Metro JPA at a duly noticed meeting for review and a first reading. Sixty ( 60) days or more after the first reading, after the Metro JPA Directors have had opportunity to consult with their respective agency staff and governing boards, the Administrative Agreement may be presented at a duly noticed meeting for a second reading and approved upon an affirmative vote by no less than two- thirds of the members of the Metro JPA during a duly noticed public meeting in other words, upon the affirmative vote of at least eight or more of the twelve members of the Metro JPA, irrespective of how many Metro JPA Directors are present at the meeting, unless the number of Participating Agencies changes). If the second reading does not occur within One Hundred and Twenty ( 120) days after the first reading, the proposed Administrative Agreement shall no longer be taken into consideration, unless the City and the Metro JPA Directors agree to a different timeline. An Administrative Agreement, amendment thereto, or termination thereof, must receive City' s Administrative Approval and at least a two -third affirmative vote by the Metro JPA Directors before it can become effective. Administrative Agreements are binding contracts as against the City and all Participating Agencies, irrespective of whether or not any Participating Agency' s particular Metro JPA Director voted to approve the agreement or not, or was absent or abstained. The Metro JPA has the authority to bind the Participating Agencies to Administrative Agreements pursuant to the delegated authority provided to the Metro JPA in Section 9. 3 herein.
16. GENERAL
16. 1 Exhibits.
16. 1. 1 Exhibit List. This Agreement references Exhibits A through J. Each exhibit is attached to this Agreement and is incorporated herein by reference. All exhibits to this agreement shall be listed in Exhibit J, Exhibit List. The City shall update the Exhibit List from time to time each time an Exhibit is amended or revised pursuant to this Agreement.
16. 2 Electronic Exhibits and Attachments. Acknowledgement and Acceptance: The Parties hereby acknowledge and agree that the exhibit( s) and attachment( s) related to this Agreement, or any of its associated Administrative Agreements, indicated as an Electronic Exhibits above ( collectively, the " Electronic Exhibits") may be in an electronic format that cannot be readily or accurately converted into a physical or printed form. The Parties expressly agree that such Electronic Exhibits shall nonetheless be deemed to be valid and enforceable attachments to this Agreement and shall be incorporated by reference as if fully set forth herein. 39-
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16. 2. 1 Identification and Access: All Electronic Exhibits shall bear the same Exhibit identifier and name ( i, e., Exhibit A — Metro Facilities) set forth in the Exhibit List, and shall be clearly identified as an Electronic Exhibit in the Exhibit List, including a file name, a time stamp offile, and a note indicating the software used to open and view the file, including version.
The Electronic Exhibit shall be loaded on to a CD- ROM, DVD- ROM, or other electronic storage medium that is a write -once medium without the ability to further edit. Each Party shall receive an identical copy of the Electronic Exhibit( s) via identical storage mediums. The City shall ensure that all Participating Agencies have full and unrestricted access to Electronic Exhibits for the duration ofthe Agreement and any applicable retention period thereafter, including by providing access to any necessary software, applications, or systems required to view, interact with, or manipulate the Electronic Exhibits in their native format; such as through website access via the GIS Online platform: https:// sandiego. maps. arcgis. com. No interaction or manipulation of any Electronic Exhibit shall in any way constitute a bona fide change or amendment to the Electronic Exhibit.
16. 2. 2 Storage and Security: Each Party shall be responsible for securely storing and maintaining the integrity ofthe Electronic Exhibits in their possession or control. This includes, but is not limited to, implementing and maintaining reasonable and appropriate technical, administrative, and physical safeguards to protect the confidentiality, availability, and integrity of the Electronic Exhibits, and to prevent unauthorized access, disclosure, alteration, or destruction thereof.
16. 2. 3 Authentication and Admissibility: The Parties hereby stipulate and agree that the Electronic Exhibits shall be deemed to be original documents and authentic for all purposes under applicable law, and that the Parties may rely upon and introduce such Electronic Exhibits as evidence in any proceeding arising out of or relating to this Agreement, without the need for further foundation, authentication, or certification.
16. 2. 4 Receipt and Completeness: Each Party hereby acknowledges and confirms that they have received, reviewed, and had a reasonable opportunity to inspect all Electronic Exhibits that are attached to and incorporated into this Agreement as of the Effective Date. By executing this Agreement, each Party represents and warrants that, to the best oftheir knowledge, the Electronic Exhibits are complete, accurate, and free from material errors, omissions, or defects.
The Parties further agree to notify the other Party promptly upon discovering any discrepancies or inaccuracies in the Electronic Exhibits, and to cooperate in good faith to resolve any such issues in a timely manner.
16. 2. 5 Amendments and Modifications to Electronic Exhibits: Any amendments or modifications to the Electronic Exhibits shall be made in accordance with the procedures set forth in this Agreement for amending or modifying the terms and conditions hereof, and any such amended or modified Electronic Exhibits shall be deemed to replace and supersede any prior version thereof. Amended Electronic Exhibits shall also be loaded onto a new and separate CDROM, DVD- ROM, or other electronic storage medium that is a write -once medium without the ability to further edit. Each Party shall receive identical copies of the Electronic Exhibits via identical storage mediums. Amended Electronic Exhibits shall bear identical Exhibit Identifiers as their predecessor exhibits, but with a different suffix (for example, Exhibit A, when amended, shall be identified as Exhibit A- 1, a subsequent amendment shall be identified as Exhibit A- 2, etc.). 40-
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16. 3 Amendments to Agreement. There shall be four (4) ways to amend, modify, and/ or change the terms set forth in this Agreement:
16. 3. 1 Amendments. Except as set forth in Sections 16. 3. 2, 16. 3. 3, and 16. 3. 4, amendments to this Agreement require the approval of all Parties. Such amendments must be in writing and signed by a duly authorized representative from each Party. Unless specifically referenced as being subject to one of the approval mechanisms set forth in Sections 16. 3. 2, 16. 3. 3, or 16. 3. 4 below, any amendment, modification, and/ or changes to the terms of this Agreement must occur pursuant to this Section 16. 3. 1. This provision controls over all other provisions in this Agreement.
16. 3. 2 Joint Administrative Approval Process. As set forth in this Agreement, the Joint Administrative Approval Process requires the approval described in Section 15. 1. 5. The following actions may be taken subject to the Joint Administrative Approval Process:
a) Agreements for New Contract Capacity as specifically set forth in Section 3. 3
b) Addition of new Metro Facilities or conversion of City facility to a Metro facility as specifically set forth in Section 4.2 c) Changes to Exhibit E ( Methodology for Contract Capacity Transfers)
d) Revisions to FAB as specifically set forth in Section 5. 2. 1. 3, except as provided therein
e) Changes to Finance, Budgeting, and Accounting System of Charges as specifically set forth in Section 5. 11
f) Changes to Costs Excluded from Metro System Costs -- Phase 1 as specifically set forth in Section 6. 3
g) Amending the formula for Repurified Water Revenue as specifically set forth in Section 6. 6.2
h) Changes to Finance, Budgeting, and Accounting for the Pure Water Program Cost Allocation and Revenues for Phase I as specifically set forth in Section 6. 8
i) Certain terms relating to Phase 2 as specifically set forth in Section 7. 1
j} Changes to Costs Excluded from Metro System Costs — Phase 2 as specifically set forth in Section 7. 2
k) Terms regarding revenue sharing for Repurified Water for Phase 2 as specifically set forth in Section 7. 3
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1) Terms regarding the Capital Expense Rate for Phase 2 as specifically set forth in Section 7. 4
m) Creation, changes, amendments, modifications to, or terminations of any Administrative Agreements as specifically set forth in Article 15.
16. 3. 3 Two -Party Approval. As set forth in this Agreement, Two -Party Approval requires the City' s Administrative Approval and a two- thirds ( 2/ 3) vote or greater of the Metro JPA Directors present at a duly noticed Metro JPA public meeting. The following actions may be taken subject to Two -Party Approval:
a) Determinations regarding liability as specifically set forth in Section 2. 5. 5
b) Contract Capacity Transfers — Decreases as specifically set forth in Section 4.4. 3. 2
c) Changes to Strength measurements as specifically set forth in Section 4. 5. 2
16. 3. 4 City Administrative Approval. As set forth in this Agreement, the City' s Administrative Approval requires discussion, evaluation, and approval by the Director ofthe City of San Diego' s Public Utilities Department or their designee. The City may, in the City' s sole discretion, refer a decision subject to the City' s Administrative Approval to the City Council for a recommendation, approval, or other action. No action is required on the part of a Participating Agency. The following actions may be taken subject to the City' s Administrative Approval:
a) Transfers of Contract Capacity as specifically set forth in Section 3. 2
b) Reductions in Metro System Capacity as specifically set forth in Section 3. 4
c) Amending Exhibit B as specifically set forth in Section 3. 6 d) Amending Exhibit A as specifically set forth in Section 4.2 e) Contract Capacity Transfers — Increases as specifically set forth in Section 4. 4. 3. 1
f) Changes to Exhibit F ( Metro System Flow Formulas and Sampling Locations) as specifically set forth in Section 4. 5. 1 g) Changes to FAB to include measurements required by law as specifically set forth in Section 5. 2. 1. 3
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h) Changes to Exhibit H if CWA changes their rate structure as specifically set forth in Section 6. 6. 2
i) Changes to Exhibit D ( Notice) as specifically set forth in Section 13.
16. 4 Construction of Agreement.
16. 4. 1 Drafting of Agreement. It is acknowledged that the City and the Participating Agencies, with the assistance of competent counsel, have participated in the drafting of this Agreement and that no ambiguity should be construed for or against the City or any Participating Agency on account of such drafting.
16. 4. 2 Entire Agreement. The City and each Participating Agency represent, warrant and agree that no promise or agreement not expressed herein has been made to them, that this Agreement contains the entire agreement between the Parties, that this Agreement supersedes any and all prior agreements or understandings between the Parties unless otherwise provided herein, and that the terms ofthis Agreement are contractual and not a mere recital; that in executing this Agreement, no Party is relying on any statement or representation made by the other Party, or the other Party' s representatives concerning the subject matter, basis or effect of this Agreement other than as set forth herein; and that each Party is relying solely on its own judgement and knowledge.
16. 4.3 Agreement Binding on All; No Third -Party Beneficiaries. This Agreement shall be binding upon and shall inure to the benefit of each of the Parties, and each of their respective successors, assigns, trustees or receivers. All the covenants contained in this Agreement are for the express benefit of each and all such Parties. This Agreement is not intended to benefit any third parties, and any such third -party beneficiaries are expressly disclaimed.
16. 4.4 Severability.
16. 4,4. 1 Should any provision of this Agreement or any associated Administrative Agreement be held invalid or illegal, such invalidity or illegality shall not invalidate the whole of the Agreement, but, rather, the Agreement shall be construed as if it did not contain the invalid or illegal part, and the rights and obligations of the Parties shall be construed and enforced accordingly except to the extent that enforcement of the Agreement without the invalidated provision would materially and adversely frustrate either the City' s or a Participating Agency' s essential objectives set forth in this Agreement or the applicable Administrative Agreement.
16. 4. 4. 2 Should a court determine that one or more components of the allocation of costs set forth in this Agreement or any associated Administrative Agreement places the City or a Participating Agency in violation of Article XIII D, Section 6 of the California Constitution with respect to their ratepayers, such components shall no longer be of force or effect.
In such an event, the City and the Participating Agencies shall promptly meet to renegotiate the violative component of the cost allocation to comply with Article XIII D, Section 6 of the California Constitution, and use the dispute resolution process in Section 10 of this Agreement if an agreement cannot be reached through direct negotiation. 43 -
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16. 4.4. 3 Should a state or federal agency provide a final, written determination that the method of allocating Pure Water Program Capital Improvement Costs under this Agreement violates the requirements of state or federal grants or loans which are, or will be, used to fund the wastewater components of the Pure Water Program, such allocation method will no longer be of any force or effect. In such an event, the allocation of Repurified Water Revenue and the Capital Expense Rate will continue to be based on the Parties' actual payments to fund the Pure Water Program Capital Improvement Costs attributable to the Metro System. The City and the Participating Agencies shall also promptly meet to negotiate an alternative cost allocation method that would comply with such grant or loan funding requirements.
16. 4.5 Choice of Law. This Agreement and any of its associated Administrative Agreements shall be construed and enforced pursuant to the laws ofthe State of California.
16. 4.6 Recognition of San Diego Sanitation District as Successor to Certain Parties.
The Parties hereby acknowledge and agree that the San Diego County Sanitation District is a Participating Agency under this Agreement as the successor in interest to the Alpine Sanitation District, East Otay Mesa Sewer Maintenance District, Lakeside Sanitation District, Spring Valley Sanitation District, and Winter Gardens Sewer Maintenance District.
16. 5 Declarations Re: Agreement.
16. 5. 1 Understanding of Intent and Effect of Agreement. The Parties expressly declare and represent that they have read the Agreement and that they have consulted with their respective counsel regarding the meaning ofthe terms and conditions contained herein. The Parties further expressly declare and represent that they fully understand the content and effect of this Agreement and they approve and accept the terms and conditions contained herein, and that this Agreement is executed freely and voluntarily.
16. 5. 2 Warranty Regarding Obligation and Authority to Enter Into This Agreement. Each Party represents and warrants that its respective obligations herein are legal and binding obligations of such Party, that each Party is fully authorized to enter into this Agreement, and that the person signing this Agreement hereinafter for each Party has been duly authorized to sign this Agreement on behalf of said Party.
16. 6 Right to Make Other Agreements. Nothing in this Agreement limits or restricts the right of the City or the Participating Agencies to make separate agreements among themselves, including through joint powers agreements, without the need to amend this Agreement, provided that such agreements are consistent with this Agreement. Nothing in this Agreement or Section 6 limits or restricts the right of the City or the Participating Agencies to enter into separate agreements regarding the industrial pretreatment program, or for the purchase or sale of Repurified Water produced by the Water Repurification System, or sharing in City Water Utility PW Costs; however, such agreements shall not affect the cost allocation and Metro System revenues delineated in Section 5.
16. 7 Statute ofLimitations to Resolve Billing Issues. Notwithstanding any longer statute of limitations in State law, ifthe City or a Participating Agency wishes to dispute a bill (including, but not limited to, an audited bill or an audit reconciliation) on the basis of an alleged overpayment 44-
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or underpayment arising under this Agreement, the Party alleging the dispute must provide written notice regarding the disputed bill to all Parties to this Agreement promptly upon discovery of such a billing issue. The written notice shall invoke or reference this Section. The Parties agree that such refunds or collections shall not accrue for more than three ( 3) years from the date that such billing is received by the Participating Agency, or one ( 1) year from the date that an audited reconciliation is received by the Participating Agency, whichever date is later. The City and the Participating Agencies hereby waive any applicable statute of limitations available under State law that exceed the time frames set forth in this Section 16. 7. Upon receipt of the written notice regarding the billing dispute, any Participating Agency wishing to participate in the resolution of the dispute shalt be allowed to do so and to present evidence to all Parties in support of their position. The involved Parties' determination regarding the outcome of the billing dispute, including any related adjustments to each Participating Agency' s share of net Metro System costs or revenues resulting from the resolution of such billing issues, shall be final. Nothing in this section relieves a Participating Agency from its obligations to make timely payments under this Agreement irrespective of whether or not a bill is being disputed. Ifthe Parties are unable to resolve a billing dispute, the Parties shall utilize the dispute resolution processes in this Agreement.
16. 8 Counterparts and Electronic Signatures. This Agreement may be executed in counterparts. This Agreement shall become operative as soon as one counterpart hereof has been executed by each Party. The counterparts so executed shall constitute one Agreement notwithstanding that the signatures of all Parties do not appear on the same page. A faxed, . pdf, or other electronic copy ofthe fully executed original version of this Agreement shall have the same legal effect as an executed original for all purposes. Electronic signatures (including but not limited to signatures via DocuSign) shall be acceptable, enforceable, and shall have the same legal effect as an original signature.
16. 9 Transparency. Upon request, the City shall promptly provide each Participating Agency with access to all records and information reflecting Flow and Strength of sewage in the Metro System, including, but not limited to, Flow data from all Metro System meters, worksheets or calculations that are used by City to develop cost information for any costs contemplated by this Agreement, and any Strength or other data utilized by the City when calculating annual sewage Flow and/or other costs imposed pursuant to this Agreement ( including, but not limited to, pretreatment costs). The Parties shall work in good faith together to ensure the Participating Agencies have reasonable and full transparency under this Agreement.
16. 10 Incorporation of Recitals. All of the recitals set forth in this Agreement, and all of the exhibits attached to this Agreement, are by this reference incorporated in and made a part of this Agreement as though fully set forth herein.
16. 11 Joint Exercise of Power. It is the intent of the Parties that this Agreement is intended to exercise the governmental authority granted pursuant to Gov. Code Section 6500 et seq. which provides for the joint exercise of governmental powers. 45 -
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N WITNESS WHEREOF, the Parties have executed this Second Amendment and Restated Regional Wastewater Disposal Agreement and the associated Administrative Agreements( s) identified herein as of the date first set forth above.
CITY ' F HU VISTA
Name: John McC nn
Title: Iavor
Attest: Kerry K. Bigelow, City Clerk
CITY OF CORONADO
Approved as to Fo
Nalne: oseMarie Horvath for Ma . Verdugo
Title: City Attorney
Approved as to Form:
Name: Name:
Title: Title:
CyI&, allJ 701a13I.1I Approved as to Form:
Name: Name:
Title: Title:
CITY OF EL CAJON Approved as to Form:
Name: Name.
Title: Title:
CITY OF IMPERIAL BEACH Approved as to Form:
Name: Name:
Title. Title:
CITY OF LA MESA Approved as to Form:
Name: Naive:
Title: Title:
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LEMON GROVE SANITATION DISTRICT Approved as to Form:
Name:
Title:
CITY OF NATIONAL CITY
Name:
Title:
OTAY WATER ISTRICT
Name:
Title:
PADRE DAM MUNICIPAL WATER
ISTRICT
Name:
Title:
CITY OF P0WAY
Name:
Title:
CITY OF SAN DIEGO
Name:
Title:
Name:
Title:
Approved as to Form:
Name:
Title:
Approved as to Form:
Name:
Title:
Approved as to Form:
Name:
Title:
Approved as to Form:
Name:
Title:
Approved as to Form:
Name:
Title:
SAN IEGO COUNTY SANITATION Approved as to Form:
DISTRICT
Name:
Title:
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Title:
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Accompanying SARA 10/ 23/25
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Exhibit A: Listing of Metro Facilities as of 10/ 23/ 2025 Metro Facilities ( Electronic Exhibit);
file name: 2025- 10 Exhibit A Metro Facilities. aprx
time stamp of file: 10/ 23/ 2025 3: 38 PM
software used to open and view file including version:
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EXHIBIT A
METRO FACILITIES AS OF 10/ 23/ 2025
TREATMENT FACILITIES
Point Loma Facilities ( PLWWTP)
Advanced Primary Treatment Plant
Ocean Outfall
Access Road
Power Generation Facility
North City
Water Reclamation Plant ( NCWRP)
South Bay
Water Reclamation Plant ( SBWRP)
South Bay Land/ Ocean Outfall'
SLUDGE TREATMENT CONVEYANCE FACILITIES
Metro Biosolids Center ( MBC)
Point Loma Digesters3
Digested Sludge Pipeline: Point Loma to MBC
Raw sludge pipeline: NCWRP to MBC
Centrate Pipeline: MBC to NCWRP
Raw sludge pipeline: SBWRP to South Metro Interceptor
CONVEYANCE
Pump Station 1
Pump Station 1 Force Main
Pump Station 2
The South Bay Land/ Ocean Outfall is jointly owned by the International Boundary and Water Commission, U. S. Section ( 60. 06%) and the City of San Diego ( 39. 94%). The capacity of the City' s portion of the outfall as of the date ofthis Agreement is 74 MGD average dry weather flow, of which the Metro System has a capacity right to 69. 2 MGD and the City as an exclusive right to 4. 8 MGD 2Gravity pipeline connection between NCWRP and the North Metro Interceptor 3Included separately from rest of treatment plant to acknowledge role in sludge treatment process.
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
Pump Station 2 Force Mains
Pump Station 2 Backup Power Generation Facility
South Metro Interceptor
North Metro Interceptor
Grove Avenue Pump Station
Grove Avenue Pump Station Force Main
Rose Canyon Parallel Trunk Sewer 2
Second Rose Canyon Trunk Sewer 2
East Mission Bay Trunk Sewer2
Morena Blvd. Interceptor 2
Metro System Meters ( including 88 billing meters and 14 operational meters) North City Tunnel Connector
West Point Loma Interceptor
OTHER FACILITIES
Environmental Monitoring and Technical Services Laboratory (95% Metro Ownership)
Metro Operation Center aka MOC ( 17% Metro Ownership)
Dairy Mart Road & Bridge
FUTURE METRO FACILITIES
Phase I Pure Water ( Under Construction — Percent ownership will be assigned after audit) Expand NCWRP
Morena Pump Station
Morena Pump Station Force Main
CentratelRSDP Line (From NCWRP to North Metro Interceptor) East Mission Gorge / East County residuals line (Water, Muni, and Metro combined assets)
The South Bay Land/ Ocean Outfall is jointly owned by the international Boundary and Water Commission, U. S. Section ( 60. 06%) and the City of San Diego ( 39.94%). The capacity ofthe City's portion of the outfall as of the date of this Agreement is 74 MGD average dry weather flow, of which the Metro System has a capacity right to 69. 2 MGD and the City as an exclusive right to 4. 8 MCC 2 Gravity pipeline connection between NCWRP and the North Metro Interceptor 3Included separately from rest of treatment plant to acknowledge role in sludge treatment process.
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
Phase 2 Pure Water Planned
Phase 2 Pure Water ( TBD)
Phase 2 Pure Water Centrate Line ( TBD)
Reserved Rights- Other Future Facilities
The facilities listed in this category will potentially be required as part of the Metro System for hydraulic capacity, good engineering practices and/ or compliance with applicable law, rules or regulations, including compliance with OPRA, and continuation and maintaining the City' s Waiver of applicable treatment standards at the Point Loma Wastewater Treatment Plant Waiver").
South Bay Secondary Treatment Plant ( 21- 28 MGD)
South Bay Secondary Sewers & Pump Station ( Sweetwater River) South Bay Sludge Processing Facility
Wet Weather Storage Facilities
The South Bay Land/ Ocean Outfall is jointly owned by the International Boundary and Water Commission, U. S. Section ( 60. 06%) and the City of San Diego ( 39. 94%). The capacity of the City' s portion of the outfall as of the date of this Agreement is 74 MGD average dry weather flow, of which the Metro System has a capacity right to 69. 2 MGD and the City as an exclusive right to 4.8 MGD 2 Gravity pipeline connection between NCWRP and the North Metro Interceptor 3Included separately from rest of treatment plant to acknowledge role in sludge treatment process.
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
NI LEGEND
V - - LL METROIHIERG METERS
7 IYy4y
FPfrTREATMEHTPWITS — METRO IHTERCEPTORS
S • - . METFN PUMPSTATIONS - -
EORCE MAINS
SILJfl [ I. IJE3
OTHER PUAF $ TATIOEIS _ _ NETkoiNiTFALL
1'.,
nl•
CITY OF POWAY
I`
Yee r Jol ned7971
CITY OF
c"
DEL MAR
Year Joined 1972
1 1 i
PADRE DAM
MUNICIPAL
WATER DISTRICT
NORTH NORTH C1TY YearJolned 1974
CITYAWP WATER REC.
PLANT EAST I LAKESIDEIALPINS
COUNTY AWP ISO County Senitatfon DletrIct
Year Joined 1974
METRO
BIOSOLIDS
CENTER
w.... ri
e GpRDEN5
3' 1 SD Cuuunly S enitetion District
Year F Joined14as r
EL CAJONalnW Cc— yry796E
CITY
OF LA MESA . Hk
t. Year Jolrnd 1967 CITY
OF LEMON i y
ss
GROVE
Year
Joined 1963 SPRING
VALLEY SD
County S•nNetfon OMtrice ryF- •
a
Year Jolrrd 1963 p
L,
q
POINT LOMA • j
TREATMENT . ODISTRICTR
G
V•
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OC1EfLN I * N' n POLT{ FP11_:-•- _' CITYOF ' • e •_ --
CORONADO
Year
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C
3. y r._.
OF OF NATIONA4
CFTY f • / f[ Yar Joined 1963 ji C
ITY OF C HULA VISTA S
Ynar Joined 1963 EAST
OTAY MESA CITY
OF SD
County 9anEeflon District Year
Jelitee 2000 IMPERIAL BEACH Year
Joined 1963 BAY
SOUTH SOUTH
WATER RECL SOUTH
BAY pCEAN
gpY
LA"L DUT{ ALL PLANT OUTEALL_ _
INTL J„
f WASTEWTR TRE
ATM NT PLT Sarx
I5.ui f Land M FrlanagerTlM[, FSN, HERE.. CiarntiR INCI2EA F, ww S, MET ni
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
Exhibit B
Distribution of Wastewater System Capacity Rights
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
EXHIBIT B
DISTRIBU %'ION OF WASTEWATER SYSTEM CAPACITY RIGHTS
LJ
ANNUAL FIXED CAPACITY RIGHTS'
I 2 3 4 5 6 7
AGENCY
Average Howe,
NIGD
Incremental
s
Peak Flow, ,
MGD
a
RSPD , MCD
Total Allowable
a
Etow ,
MGD
TSSt,
1,[ 1110 the.
COD,
I. 000lbs,
s
Pure Water Phase 1
Chula Vista 18. 33 19. 52 0 37. 85 22, 082 38, 4I9 1 I. G99'! i Coronado 1, 90 3. 03 0 4. 93 2, 089 3. 336 1. 152%
Del Mar 0. 00 0. 30 0 0. 30 0 0 0. 020%
last Olay Mesa 1. 79 3. 48 11 5. 27 1. 915 3. 336 I. 096' 10 El Cajon 1. 29 19. 93 0. 602 21. 82 2, 196 3, 052 0. 497% imperial Beach 2. 47 4. 48 0 6. 95 2, 045 3. 844 1. 411% I_a Mesa 5. 29 23. 90 0 29. 19 4, 668 9. 636 2. 823%
Lakeside/ Alpine 0. 07 1. 67 0. 310 2.05 238 293 0. 153% Lemon Grove 2. 40 4. 51 0 6. 91 2, 289 4, 387 1. 395%
National City 4. 65 3. 07 0 7. 72 4, 562 9, 161 2. 1152% t )Lay 1. 38 0. 57 11 1. 95 984 635 0. 457%
Padre Dam 0. 44 6. 54 0. 364 7. 34 632 890 0.444%
Poway 3. 10 8. 110 0 11. 90 3, 113 5. 073 1. 869%
Spring Valley 5. 74 5. 05 0 10. 79 6, 039 10, 597 3. 765% Winlergarderls 0. 02 1. 08 0. 080 1. 18 65 80 0. 044%
SUBTOTAL 47,9 105.9 1356 155. 1 52, 916 92, 930 29.677% San Diego
Wastewater 124.05 136. 16 0 26( 1. 21 13( 1.[ 132 252, 818 70. 323% Water 0 1 14. 3 0. 110 1 D 1
SUBTOTAL 124. 1 136. 2 14. 3 260.2 130, 032 252, 818 70.323% Metro ]& l 82 82
TOTAL 171. 9 324. 1 15. 7 497. 4 182, 948 345,756 100%
1. Currently based on 2030 projected flows and strengths.
2. Based on monthly average flow and strength.
3. 13osad on hourly average flow.
4. Reject Stream from Dercineralimtian 1' iocess
5. Pure Water Phase l Capital Melded Percentages as eotnbliahed in Exhibit C of the ' Amended and Restated Regional Woatewater Disposal Agreement Between the City of San Diego and the Participating Agencies in the Metropolitan Sewerage System" memorialized here only for use in hilling Pure Water Phase l capital expenses. The following fractions were used to calculate the Melded Percentage ( Based on 5 year average and not subject to change except by agreement of the parties.]
FLOW 5.5 COD
0. 183 6. 25"7 0. 243
7/ 18/ 2025
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
Exhibit C
Administrative Protocol on Allocation of Operating
Reserves and Debt Service Coverage to Participating
Agencies
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
METRO WASTEWATER JPA
Www. l II elude Ulu
April 19, 2010
Rod Greek
Public Utilities Deputy Director
City of San Diego, Metropolitan Wastewater
9192 Topaz Way
San Diego, CA 92123
276 Fourth Avenue Chula Vista, CA 91950 619- 476. 2557
Re: Administrative Protocol on Allocation of Operating Reserves and Debt Service Coverage to Participating Agencies
Dear Mr. Greek:
Ernest Ewin, Chairman
This letter is intended to memorialize the attached Administrative Protocol on Allocation of Operating Reserves and Debt Service Coverage to Participating Agencies (" Protocol") negotiated between the City of San Diego and Metro TACI Metro JPA1 Metro Commission, on behalf of the Participating Agencies under the Regional Wastewater Disposal Agreement. Your signature will indicate acceptance of the Protocol on behalf of the City.
By countersigning this letter, the City of San Diego and Metro TAC/ Metro JPAI Metro Commission acknowledge and agree to the terms and conditions contained in the attached Protocol.
Sincerely,
for the Metro TAC/ Metro WA] Metr Commission
Enclosure
The Protocol is accepted by the City of San Diego pursuant to the terms and conditions set forth in the attachment hereto:
Date: _/ I
od Greek, ublic Utilities Deputy Director
The Protocol is accepted by Metro TAC/ Metro JPAI Metro Commission on behalf of the Participating Agencies pursuant to the terms and conditions set forth in the attachment hereto:
Date:
The Joint Powers Authority Proactively Addressing Regional Wastewater Issues Chula Vista Coronado Del Mar • Imperial Beach • La Mesa Lemon Grove Sanitation District National City • Otay Water District Poway • Padre Dam Municipal Water District County of San Diego, representing East Clay, Lakeside/Alpine, Spring Valley & Winter Gardens Sanitation Districts
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
Administrative Protocol on Allocation of Operating Reserves and Debt Service Coverage to Participating Agencies
BACKGROUND:
In early 2008 the MetroTAC formed a working group in response to the City of San Diego' s request for 20 million in funding in FYF 2009 from the Participating Agencies (" PAs") for operating reserves and debt service coverage. The working group continued to meet with City of San Diego staff regarding the establishment of a mutually agreed upon protocol through early February 2010. A summary of the City of San Diego' s 2008 proposal and the negotiated 2010 protocol is included as Attachment A.
At its regular meeting of February 17, 2010, the MetroTAC approved the following recommendations to move to the Finance Committee of the Metro Wastewater JPA and thereafter to the Metro Commission/ Metro Wastewater JPA for discussion and action:
Proceed with PAs funding a 1. 2 debt service ratio coverage Proceed with PAs funding a 45 day operating reserves
The PAs will fund no other reserves
FY07 and FY08 refund monies will be used to fund the operating reserves Interest accrual on operating reserves and undesignated accounts will start with FY10 ( beginning on July 1, 2009)
The Finance Committee of the Metro WastewaterJPA, at its February 24, 2010 meeting, took action to recommend approval of the above, by the Metro Commission/ Metro Wastewater JPA. At its March 4, 2010 meeting, the Metro Commission/ Metro Wastewater JPA, comprised of representatives of the PAs, approved the components of the negotiated policy, with the understanding that any such policy would serve as an administrative protocol regarding the allocation of debt service coverage to the PAs and funding of operating reserves by the PAs.
PRQTOCOL REGARDING PA FUNDING OF OPERATING RESERVES:
Background:
Operating reserves are established to provide funding for unforeseen events that might occur during the course of the fiscal year such as unforeseen major maintenance or capital projects. The PAs performed a survey of other regional wholesale agencies and determined that agencies such as the San Diego County Water Authority maintain a 45 day operating reserves. Although the City of San Diego' s current policy is to increase operating reserves for its retail customers from 45 to 70 days, the City realizes that if a major maintenance incident should occur it can immediately request payment from the PAs per the Regional Wastewater Disposal Agreement. The City of San Diego' s retail customer' s rates cannot be immediately increased due to Proposition 218 requirements for noticing and public hearings.
Protocol:
Attachment B is a summary of the funding strategy showing each PAs 2007 and 2008 refunds based on recent City Metro Wastewater Exhibit E audits. The refunds will be used to fund the PAs 45 day operating reserves contribution. In the majority of cases most PAs will see a refund even after they have Draft # 2 - March 10, 2010 Page 1
5 DP U B\ PD ESOUSA\ 3 93171. 1
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
fully funded their portion of the operating reserves. PAs that do not have adequate refunds will be billed for their portion of the reserve in the next quarterly 2010 billing. The operating reserves for each fiscal year will be established based on 45 days of operating revenues as determined by the following formula:
Fiscal Year Estimated Operpting Expenses ( not including CIP and debt service 365 days x45 days
The number of days included in the calculation cannot be changed without prior consent of the PAs.
The operating reserves will be maintained by the City of San Diego and interest will accrue on a monthly basis based on actual interest rates on the City' s investments. This interest revenue will be added to the PAs undesignated fund balance for that fiscal year. As part of each year' s Exhibit E audit the actual required operating reserves and interest earned on it will be determined and audited by the City of San Diego' s external auditors and PA representatives. A summary of the operating reserves balance and interest earned for each PA will be included as a footnote or attachment to the City Metro Wastewater Exhibit E Audit.
PROTQCOL REGARDING ALLOCATION Of DEBT SERVICE COVERAGE To PAs Background:
A 1. 2 debt service coverage ratio is a requirement for all of the outstanding Metro parity debt. A cash flow prepared by the City of San Diego shows ( Attachment Cy that if the PAs are billed at the current level ($ 65 million annually to cover the PAs portion of operations, pay -go capital, and debt service expense) for the next three to five years that this requirement can be achieved without additional contributions by the PAs. This provides the PAs a stable projected annual Metro contribution for the next three to five years.
Protocol:
The PAs will maintain through annual contributions and use of PA undesignated fund balance a positive cash flow not to exceed 1. 2 times the PA share of the required annual debt service on Metro Debt. The debt service coverage ratio of 1. 2 cannot be changed without prior consent of the PAs.
The undesignated fund balance will be maintained by the City of San Diego and interest will accrue on a monthly basis based on actual interest rates on the City' s investments. This interest revenue will be added to the PAs undesignated fund balance for that fiscal year.
As part of each year' s Exhibit E audit the actual required reserve coverage and interest earned on the undesignated fund balance will be determined and audited by the City of San Diego' s external auditors and PA representatives. A summary of the debt service coverage requirement and portion of interest earned on the undesignated fund balance for each PA will be included as a footnote or attachment to the City Metro Wastewater Exhibit E Audit.
If the cash flow in any year does not provide the required 1. 2 debt service coverage the PAs will be billed the additional required revenue including interest.
Draft # 2 - March 10, 2010 Page 2
5 D PU B\ P D E5OUSA\ 393171. 1
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
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City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
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City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
Exhibit D
Notice Listing
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
EXHIBIT D
NOTICE LISTING
Maria Kachadoorian Greg Humora Mayor Todd Gloria
City Manager City Manager Chief Operating Officer
City of Chula Vista City of La Mesa City of San Diego
276 Fourth Avenue 8130 Allison Avenue 202 " C" Street
Chula Vista, CA 91919 La Mesa, CA 91942 San Diego, CA 92101 Phone: ( 619) 691 5031 Phone: ( 619) 667- 1101 Phone: ( 619) 236- 5949 mkachadoorian a)chulavista Ghumora( dricityotlamesa. us ma ortodd loria a] sand ie . ov ca. ov
Lydia Romero Ebony Shelton
Tina Friend City Manager Chief Administrative Officer County City Manager City of Lemon Grove of San Diego
City of Coronado 3232 Main Street 1600 Pacific Highway, Rm. 209 1825 Strand Way Lemon Grove, CA 91945 San Diego, CA 92101 Coronado, CA 92113 Phone: ( 619) 464- 6934 Phone: ( 619) 531- 5250 Phone: ( 619) 522- 7333 sdershetn( lemongrove. ca. us Cao mail aNd ount . ca. ov cm rr, coronado. ca. us
Scott Huth Jose Martinez
Ashley Jones Acting City Manager General Manager
City Manager City of National City Otay Water District
City of Del Mar 1243 National City Blvd. 2554 Sweetwater Springs Blvd. 1050 Camino Del Mar National City, CA 91950 Spring Valley, CA 91977 Del Mar, CA 92014 Phone: ( 619) 336- 4240 Phone: ( 619) 670- 2210 Phone: 755- 9313 ext. 25 CMO a, nationalcityca. gov iose. martine otanyater v a i onesCa de l mar. ca. us
Chris Hazeltine Kyle Swanson
Graham Mitchell City Manager CEO/ General Manager
City Manager City of Poway Padre Dam Municipal Water
City of El Cajon 13325 Civic Center Drive District
200 Civic Center Way Poway, CA 92064 9300 Fanita Pkwy El Cajon CA 92020 Phone: ( 858) 679- 4200 Santee, CA 92071 Phone: ( 619) 441- 1716 chazeltine(upoway.o Phone: ( 619) 258- 4673
gmitchell( a3elcajon. gov
k sw anson(ct padre.org
Tyler Foltz
City Manager
City of Imperial Beach
825 Imperial Beach Blvd.
Imperial Beach, CA 91932
Phone: ( 619) 423- 8300 ext. 7
tfottz(a imperialbeachca. you
4914- 3650- 2326
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
Exhibit E
Methodology for Contract Capacity Transfers.
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
EXHIBIT E
METHODOLOGY FOR CONTRACT CAPACITY TRANSFERS
The following exhibit describes the methodology for transferring contract capacities from the Metro Pooled Capacity (summarized in the table below) to a Party' s contract capacity defined in Exhibit B.
POOLED CAPACITY
Average Flow, lncremenial Peak', TSS, COD,
mgd mgd 1, 000 lbs. 1, 000 lbs.
After Phase I Pure Water [] 10 96, 820 27, 521
After Phase 2 Pure Water 10 20 96, 820 27, 521
1. At Point Loma WWTP
2. Assume system storage
If a transfer of contract capacity is initiated as set forth in Section 4.4. 3. 1, capacity will be taken from the Pooled Capacity and added to the Party in need of additional capacity. Thereafter, the above table of Pooled Capacity will be updated with the subject column reduced, and Exhibit B will be updated with the subject Party' s contract capacity correspondingly increased.
In lieu of transferring average flow capacity from the Pooled Capacity to a Party, the Party can choose to transfer Incremental Peak Flow Capacity to Average Flow Capacity keeping Total Allowable Flow the same, assuming the Party would still have sufficient Total Allowable Flow Capacity for their peak flows.
If a transfer of contract capacity as set forth in Section 4.4. 3. 2, the reverse shall occur and the subject Party' s contract capacity will be reduced in Exhibit B and the Pooled increased.
In lieu of transferring average flow capacity to the Pooled Capacity from a Party, the Party can choose to transfer Average Flow Capacity to Incremental Peak Flow Capacity keeping Total Last Updated: 5/ 29/ 2025
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
Allowable Flow the same, if they anticipate needing their current Total Allowable Flow for their peak flows.
The remainder of this Exhibit has examples of how these transfers would be performed and the estimated effect on a Party' s share of Metro System Costs under the FAB Billing System. Please note Metro System costs will change from time to time as well as Contract Capacities per Exhibit B, so the following are only examples and not meant to be exact. These examples are based on Exhibit Bas ofthe signing ofthis agreement, not necessarily the last revision of this exhibit. These examples are currently based on FY24 unaudited costs and estimated FY27 billing units.
Last Updated: 5/ 29/ 2025
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
AVERAGE FLOW EXAMPI. F — $% INCREASE IN CONTRACT CAPACITY FROM POOLED CAPACITY Ifth City of Chula Vista needed o 5% Increase in Avcragc Flow Contmcl Capacity Doris the Pooled Capacity, Ihcn Cxlrcbil 13 Cumra I Capacity would be updated as follows DLSTR18UT [ON OF WAS1•EWATER SYSTEM CAPACITY RIG] ITS
ANNUAL FIXED CAPACITY RIG] ITS
AGENCY I 1 3 4 51 6 __
Aver., Incremental Total Allorrabir TSS. COD,
Flow, Peak Flow, ILSPI3, MCD Flow,
MGD 1, 00016& i 1, 00016s, 11iGD MGD t---
Chula Viola ( Old) 18- 33 19, 52 1) 37. 85 22, 11112 311, 419_ ChulaViI------ ola ( New) 19.25 19.52 0 30. 7 22, 082 -- 38, 419 If the City of Chula Veto rwedorI a 5% Irumast al"nnlru:l C: 11nwily, then Chula Viola' s coals incTeaso - 4%. All or ugoeaiao axols would do roasu proportionally.
U11' NERSDIP CSE TOTAL
AYCraga FneremCntal L4DP, T5..,
COD, Metar
RSDP, TSS, COD, of
AGENCY I Flaw, Peak Maw•. OICD I 1, Q10I6s. 1000 Floe•• MCD 1, 00016s. 1, 080 lbs. TOTALTotd
MCD MCD 6& NIGD
hole Vista 52, 910.[ 1{ 12 SI„ 3, 3[ 1, 56, 3 0 52,040, 479 527, 941 Si !. 015 - PM Sit 7, 5611, 509 02, 941, 1611 28, 3.46,743 11. 1% Old)
Chula Vista 3, 041, 025 51, 327, 783 50 52, 040, 479 527, 941 012. 028, 890 S0 7, 560, 599 $ 2, 941, 160 SZ9, 467, 877 11, 6% Now)
Last t; pdatcd! 5/ 29/ 2025
AGENCY OLD NEW
ChaIa Viaro S 28, 546, 743 5 29467 877
Coronado 2, 151, 663 2. 540. 402
lkl Mor S 20, 447 20, 405_
Tact Clay $ lcaa S 1, 072, 840 5 _ 1, 069, 001_
LI Cajun 5 3, 311, 325 3, 300. 158
Imperial Beach 5 3, 397, 789 3, 379, 514
LuMora S 8, 545, 592 8,504, 174
LakesidoJN ine S 30) 946 S 304, 943
Lawn Grove S 3, 041, 920
S 6, 275, 5I2
S 3,026,888
National Cay 5 6, 243, 265
Otay 5 946, 616 S 943. 355
Padre Dam 5 750, 193 748, 140
Poway S 4, 347, 435 S 4, 326.,,388
Spring Valley S 7, 162, 725 S 7, 147, 114
Winle, rnbenr S 135, 844 135,453
SUBTOTAL S 70, 032, 590 S 70, 957, 35_
San ! Ingo
SD IVnxwwater 5 182, 904, 588 S 161. 993, 097
SD Water 1, 457, 146 S 1, 444, 072
SUBTOTAL 184 1734 5 183137 ! 69
Rc ivrurl Sludge S
TOTAL S 1: 4,394, 325 S 254, 394,320
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
AVERAGE FLOW EXAMPLE - 5% INCREASE IN CONTRACT CAPACITY PROM INCREMETNAL PEAK I1 dw City of Chula Vista needed a 5% Incrcasd in Average ]' low Contract Capociiy From their imxemenlal Peok, then Lnhibil l3 Contract Clsaeity would be updaud m Fellows DISTRI13UTION OF WASTF W A I k' 14 SVS1 FM CAPACITY RICIITS
ANNUAL FIXED CAPACITY RIGHTS
AGENCY
1 2 3 I 4 S 6
Average Inc rem enrol Toln1 Allowable
T5S. COD.
Plow, Pcak Flow, RSPD, MGD FIDw,
MGD M1lCn NCl1 -
1, 000 lbs. 1, 000 i. hs
helaVtata1O]ld-• 38.33 19.52 3 37. 85-" 22, 082 38, 419 Chula Vikw ( New) 19.25 18.6I 0 37.85 22, 092 38,419
If the City of (:hula V,- ta,, treed a 5% l. crcasc io Cnnuact Capacity, then Chula Vista' s costs increase - 3-8%. All other agwuics' rows would decrease proportionally.
IWN-! R" IIIV I: si' 10IAl.
Average incremental RSI7P, TSS.
COD, Metered R5DP, : 755, COD,
AGENCY Flow. DOTAL Peak Plow, F1GD 1, 0001b. 000 Flan,
MGD . 1, 000 lbs. 1. 000 lbs, FDlal M(W MGD Iha. M11GD
Chula Vista
Old) 32, 910, 602 SI, 33II, 5h3 50 2,040.479 5527,9+11 01 13135,599 S9 57. 560599 5, 941, 140 920,3. 6,743 1. 194 IChulaNm'Vista53041023 c)
51, 268, 493 56 52040, 479 5527, 941 12. 031092 50 S7.. 50932, 941, 140 929. 411, 386 11. 6% Last Updated, 5129, 2025
AGENCY OLD NEW
Chula Vista S 28 46, 743 S 1, 586
Comrade 5 2,331. 633
29, 41
S 2, 341, 152
Dal Mar
Fas1Ota Mcaa
S 20,447
S 1, 072, 840
5 20. 449
S 1. 069,537
EICa•om 5 3, 311, 325 5 3, 303, 299
Imperial Hoods
Lu Mesa
7, 397, 789
S 8, 545, 592
S 3, 380, 539
S 8, 509, 472
I kesiddAlpinc
anon Crow
5 305, 946
S 3,041, 920
S 305, 226
S 3, 327, 050
National Cti S 6,275, 512 S 6, 244 378
Otay 946, 616 943, 505
Padre Dom
Vows
5 750, 193
S 4347, 435
3 749, 149
S 4, 328. 094
SpsiagVu11o' S 7, 182725 S 7, 148. 584
Wnhsgerdorm
SUBTOTAL
Diego
SD IVuetewaler4, 538
S 1344 58S_ 135, 622
S7017,
S 182, 031,
4 622
SDWater
3,990
7, 146 S 1, 445, 211
1400TOTAI.
Rcginl Sludge
TOTAL
1, 734
4, 325
S 183,476,533
S -
S 264, 194, 325
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
1NCREMENTAI. PEAK FLOW EXAMPLE •- 3% 11CREASF IN CONTRACTCAPACITY FROM POOLED CAPACITY II•tho City o£ Chula Vista rwt* sI a 5".b lncreaae in lncremenlal Peak Contract Capacity Fmm the PoutcJ Capacity, then Ilahibit U Cant tact Capacity would he upJat,J as fJlaws I' DISTRIBUTION OF WASTEWATERSYSIF. 65 CAPACITY RIGHTS I
ANNUAL FLYED CAPACITY RIGHTS
AGENCY I 2 3 4 S fi
Average f lneremenial Total Allmvahle
TS5. Co
Flo. s, Peak Flow, RSPD, MGD Flo. v,
1, 9110 tbs. 1, 000 Iba.
MGI] MGD
Chula Vism( Old}
MGU
1033 19. 52 0 37. 85 22, 082 38, 419
Chula Vlsra lewl l&33 20. 59 0 38. 83 22, 0312 I 38. 419m if0x: City of Chula Vista needed a 5% Increase in Contract Capacity, then Chula Vasla' s casts i sarcasc - C1- 2% All other agencies' costs would decressc proportionally.
T' IERSlI1P l' SM; IDEAL
Average larrrntrosai RSDP, TS5,
COD, ysicr. RSDP, • f 55, COD, of
AGENCY Flow, Peak Flow, MGD I,41ltlbr. 1, 000 MGD 1 1, 0001bs. 1, 010 ba.
TOTAL
Foist
h1GU MGD Din, M1SGI1GI)
Chula Vista 52, 910,602 51 90 52,040,479 527. 941 SI1. 035, 399 0 7, 560, 399 2,941, 150 528, 346, 743 11. 151 Old)
330,367
Chula Vista 52, 910. 196 $ 1, 394,000 SO 52, 040. 479 5527, 941 SI 1, 022, 052 50 57, 560.599 2,941, 160 520.4t7,227 11. 2% New
Last Updalcd! 5Y29Y2025
AGENCY OLD NEW
Chula V,, m 20, 346, 743 28407 227
Coronado 5 2, 351_663 S 2. 350,944
Del Mar 20.447 S 20.400
Fax[ Ora Mesa S 1, 072, 840_ S_ 1072211
5 3, 307, 956
S 3, 396, 688
El Cs}xm S 3, 311, 325
Inrperiat Beach S 7, 397, 789
La Mean S & 545, 592 S 8, 540, 979
LakcsiddAlpino S 505; 794 S 305, 642
LmwnGrovc S 3, 041, 920
S 6, 275, 212
3, 040. 886
S x;, 274, 315
946, 455
Nalional City
Gray __ S _ 946, 616
Padre Dun S 750, 193 749, 111
Powry S 4,347,435 4, 345, 6104
siis Valley S 7. 182,,125 S _ 7, 181, 144
Winter em S 135, 844 135,662
SUBTOTAL S 70, 032, 390 S _ 7075, 228
Son Diego
SD Wadcwarer S 182, 904, 388 182, 863, 179
SD '. Valor 1, 437, 1- 06 1, 455,920
SUBTOTAL S 18436!, 734 S 184: 19, 999
Regional Sludge S S
TOTAL. 254, 394. 325 S 234, 394' 325
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
RSDP EXAMPLE - 5% INCREASE IN COV FRACTCAPACITY
If the City of I: 1 Cajon needed a 5% Increase in RSDP Conked Capacity, Ihcn Exhibit B Contract Capacity would be updated as follows ISIS CR I EUT ION OF W ASl EWA CE R SY STE hI CAPACITY RIGHTS ANNUAL FIX" CAPACITY RIGICF$
1GENCY
2 3 4 5 6
Average Incremental Tolul Allowable
TSS, COD,
Flow, Peak Flow, W9PD, MGD Flow,
1, 0001bL 1, 000151. SIGD SIGD MGD
0.602 21. 82 -
21. 85
2, 19&
2, 196
1, 052
3, 052
El Ca3on ( UId) 29 59. 93
EI Con( Now) 1. 29 19. 93 0.432
1( 1110 City of Chula EI Cojun needed a 5% increaae in ConnWi Capacity, than Chub V•rata' o uralu Iiicneaua- 2. l% 5. All [] filer ugunuim aunts W[ nlld d,rereau, pn p,rtt nanlly. 01% E RS I I I P USE 1( 7. 11.
Averogr lncrerneel1L RS11P, TSS, COD, Metered RSDP. TFS, COD, Y of AGENCY Flow, Peale Flo, v' NGII 1, 00015,. I.p00 Flow,
67GD 1,!! 0016,. 1, 04p Ibs.
TOTAL
MCA MGD lbs, MGD
El Cajon
l J
52134, 838 S I,. i58,. i7K 56, 517 32112. 124 541, 940 625, 1191 565. 117 SR 16, 096 190, 415 3,.111, 325 1. 3% ECap,
cw
5204, 837 51, 357, 377 56, 841 5202, 924 ' 541. 940 624, 752 . 534, 671 3616. 066 5199, 415 3, 382, 124 1. 3% Last Lpdaood: 5.+29! 2025
a[[; of sf. OLD r w
ChulaVista S 28, 346, 743 F 28, 339, 417
Cmomado S 2351, 663 5 2, 351, 1117
Del Mar S 20,447 5 20, 432
Farr Cloy Alcoa S 1, 072, 840 5 1, 072. 562
Lit Cajon _ _ S i.382.] 21 S 3. 311 725
Ian y rial Beach S 3, 397, 769 5 3, 396, 7] 9
La Mesa S 8,545, 592 S 8, 542, 569
LakeshdHAlphne 305, 946 S 391, 794
Lemon Gruvc 5 3, 041, 920 S 3, 041, 021
Natiunol City S 6, 275, 512 5 6,273. 843
lay S 946, 616 S 946, 432
Padre Dam 5 750, 193 749, 779
Poway S 4, 347, 435 S 4,346, 059
Spring Vdtey S 7, 182, 725 S 7, 1$ 0, 836
Winter . dens S 135, 844 S 135768
Si1BTOTAL S 70, 032, 590 S 70, 084.'178
San Dinn SD
Weetcauta 5 182, 904, 588 S 182, 854, 978 SD
WotcrS 1, 457, 146 1, 454, 969 SUBTOTAL
S S 184 30947 Ae
Wonat Stud e 104381,
734 5
S TOTAL
S 2. 54, 594, 325 S 254, 394, 325
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
TOTALSUSPENDED SOLIDS EXAMPLE 5% INCREASE ] N CONTRACT CAPACITY FROM POOLED CAPACITY If the City of Chula Vista nccdcd u 5".b In in TS5 Contract Capacity from the Punl d Capacity, then Exhibit D Contract Capacity would he updated as follows Lr1S L' R I I; L: 1' I ON OF W ASTE. W.ATER SYSTEM CAPACITY RIGIE IS ^^
ANNUAL FIXED CAPACITY RIGHTS
AGENCY
1 12 3 4 5 6
Avenge 1 lncrctucntal Total Allowable 116$ j COD,
Flow, Peak Flow, RSPD, MGD Row,
MGD h4GD_ MGll 1, 0001bs. 1 1, 000 Ibs.
1.._.- _
Chula Viva (U! d] --- 18. 3. 3 1' J-. 52 0 37.85 2, 08. k 38. 419 -.
Chute Vigo( New) 19. 25 19. 52 0 311. 77 23, 186 I 38, 419 ifthe City of Chula Vista rttvdcd e3% Inum-ase in Comtwel Cupocity, than Chula Visia' s ruses inc-rtasc --2-61x.,. All ther ogcmcits' costs wtndd decrease pwpurtiundlyOWNERSHIP I SF: TOTAI.
Avenge Ineremenral RSDP, T:SS.
COD, Metemd RSDP, TSS, COD,
AGFNL: Y Flow, Penk Flow. MCD] 1, 0001ba. 1, 000 Flaw.
MGD 1 1, 00016s. 1, O0O1bs.
TOTAL
Total
MCD MOD lbs- MCD
Chula Visa 112, 9111, 6112 51. 330. 563 0 ] 2.[ 14114 ' 1 5.527; 141 SI -[ 135399 S< I 12, 560, 511 £ 2, 941, 1td1 211, 346, 743 1. 1% Old) f Chula Vista 2, 910,602 $ 1, 330,563 SO 52. 129678 5527. 941 11. 035, 399 1 SO 58. 224. 526 $ 2, 941, 164 29. 099, 869 IIA% New
test Updated: 5129/ 2025
AGENCY OLD NEW
Chula Visor S 28 346 743 S 29, 099864
Coronado S 2, 351, 663 S 2, 343, 749
Del Mar S 20, 447 S 20.447
sat Ota5 Mesa S 1, 072. 840 1 1, 070, 428
E1 Cajon 3, 311. 325 S 3. 302. 43.9
imperial Beault 3, 397. 789 S 3. 30 0,031
La Mesa 8, 545, 592 8, 523, 12.6_
LokesideiAlptrr 5395, 1616
Lemon ( oven S 3A41, 920 S 3, 032 733
Natiotal City S 6, 275, 5 12 S 6, 254, 625
Clay S 946, 616 S 941, 101
Padre Dam S 750. 193 S 749,005
Poway 5 4, 347, 435 4,334, 133
Spring Valley S 7, 182, 725 S 7, 158. 161
Winder rdcns 135. 844 S 115517
SUBTOTAL S 70,032,590 70, 656,. 374
San Diego
SD W,uw.. alef S 162, 904, 588 S 182, 273, 804
SDWalcr 1, 457, 146 S 1, 457, 146
SUBTOTAL. S 184 61734 S 103733951
Rc anal Slrrd S
TOTAL S 254. 94. 325 S 254, 394, 325
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
TOTAL CIIEM [ CAI, OXYGEN DEMAND EXAMPLE. — 5% INCREASE IN CONTRACT CAPACITY FROM POOLED CAPACITY If the City of Chula Vista nccdod n 5% Increase u COD Comrac! Capacity feom the Pooied Capacity, Ihcn Exhibit B Contract Cepacily wordd he updated as fnllnwy IIISfloot, (ION OF WASI F: WATER SYSTEM CAPACITY RIGHTS T ANNUAL FIXED CAPACITY RiGIITS
AGENCY
I 2
Average i Inerrmenfal
Flow, Peak Flow.
II MCD MCD_
lido Vi.[ a [[) Id) . 18. 33 19.52
Chula Visa INow) 19.25 1 19.52
3 J;, tMCD J1, 1. 000 wa. 000 Ihl.
Ii 7. 95 22, 082 38,410
11 38. 77 22, 11X2 40339 I
f dtn Cily uF Chula Vistas ocudud o 5% Irwreaeo in Cunuact Capacity, [hen Chula Viem' s ooilo increna¢ -. 3%. All other ayjcncao' cuvrs would decri ww pmpor[hnutlly.
OS '' NERSI I1 P J 1' SEE. To'rA 1,
Average Incremental 1 RSDP• On, C
70l
Me% red
SOP •
AGENCY nl Flow, Peak Flmv_ titGD 1. 000
1, 0001hs.
now.
MGD 100016x, 00TSI 1, 0090 lbs.
TOTAL.
T4t41 o
MGD MGR lbs. bICD
C huln Vista
U1d}
2, 910, 6112 51, 330x` 6, 3 0 52, 04(1, 479 9527, 941 11, 035, 399 50 57, 5611, 599 92. 441, 160 928,34( 1,743 111% hula Vista
Yen
2, 910. 602 51, 330, 563 90 52. 040, 479 5551, 269 511, 035, 399 SO 57, 360, 599 53, 202, 612 525, 631524 11. 3% Lass Updated: 5/ 29/ 2025
AGENCY OLD NEW
Chula Vista S 29 ,344,745 9_ 24,631, 524
Coronado 3 2, 351, 663 9 2, 349, 193
DclMor 20, 447 5 26447
East Otoy Mean 1, 072, 840 1, 072, 103
1: I Cajon S 3. 311, 325 3,308, 915
InipereIBeeeb S 3, 397. 789 S 3, 394, 165
LaMaa 5 _ E4, 545, 592 5 9, 536, 429
Lakcaida/ Al ine S 305, 946 E 305, 7211
3, 038, 467
6, 267, 241
Lmun Grave 3041, 92_0
National City S 6, 275, 5I2
they S 946, 616 945, 687
Padre Ilam 150, 193 S 749, 916
Poway S 4,347. 435 S 4,343, 173
Spring Vellcy 3 7, 182, 725 S 7, 174, 270
W infer omens 5 135, 844 5 135, 741
SUBTOTAL S 70, 032. 590 5 70, 273, 013
SI Wuslcwe1r 5192, 904, 305 S112, 964. 103
SO Walrr 5 1, 457, 146 S 1, 457, 146
SUBTOTAL S 184. 361 734 S104, 121309
Regional _ led 5
S254,394. 525
S
TOTAL 0254, 394, 325
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
Last Updakd- Si29." 2025
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
EXHIBIT F -
METRO SYSTEM FLOW FORMULAS AND
SAMPLING LOCATIONS
JULY 2025
LEGEN
O Billing and Sampling Meters
0 Billing Meters
0 Municipal Meter
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
CHULA VISTA
Hollister . 1., ST
Main
Meter +
1 Meter
CV1 CV2
Bay Blvd Bay Blvd
North South
106 ( 16
EDUS) EDUS)
VCV5
PYara
Bnn1Ier Meter
CV6M
Autupark Lagoons
Meter + Crossings + (
0.03Ihwicr +
Drive
mgd)
Acacia Combined
Gunpowder Ave Housecounts
Aoint
1 SV to CV ( 1, 040
51 EDLis)
4 EDUS EDUS)
Plaza Las Flnres N. Fifth
Bonita 2. IJr Ave
6fetcr Meter Meter
CV? M CV8 CV9
Acacia Otay Proctor Main
Ave..
i Road a
Valley ! ! Street
V1STA
Meter Meter Meter TOTAL
CV10
Meter CV12 CV1A
CV11
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
CORONADO
Amphibious
Trans - Bay 1 LBase North Island CORONADO
Meter CIM
Meter C2
Meter C3 TOTAL
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
DEL MAR
Riviera Del Connection
Meter Dh12 Mar # 1
110 EDUs} ( 9b EDUg)
Connection Del Mar
DEL MAIL 2 Estates
TOTAL
21 EDUs} ( 27 EDUs} -
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
EAST OTAY MESA
East Otay Mesa EAST TAY
55. 4 EDUs) N — MESA TOTAL
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
EL CAJON
E1 Cajon Meter - - t
I "- To LM Meter To LM
FC18 -- r. h1a 321. 5 EDUs)
Winter Gardens Winter Gardens EL CA.JON
Meter WG1M Y` ( 1, 383 EDUs) TOTAI.
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
IMPERIAL BEACH
91& Imp. Elder St. ) I Palm Ave.
Meter IBI Meter IB2M Meter IB3M2
Georgia Street Palm Avenue f
IMPERIAL
17D. 5 EDUs} {? 9. 5 L: UUs} TOTAL T
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
LA MESA
La Mesa 73^ 1 & Alvarado Alvarado
Colorado
North Sar. Trcmni Lab
LM3)(
l6 ® (
22 Plant - ( 27
Meter
EDUS} EDUs) ( 61 EL) Us) EDUS)
Alvarado Blue East
Jackson Kc4ny
Training Lake Lake
Ctr• ( 69 ( 349 (
279 ( 28
2 EDU41 EDUS) EDUS)
EDUS) EDUS)
Lake Lake L a Lviesa
Arago Murray South LM7 Umv
1• ( 292. 7 ( 119. 8 + LMIAM + Meter + ( 91
EDUS} EDU) Meter EDUS)
67 & u, R\ +osefield Vigo
204
Valencia Alamo
University
L58. 5 ( 4 EDUS) 20
EDUS)
EDUS) EDUS) ( 34 EDUS)
71Y"& 731d& E
TOSV TOSV ToSV
Colony Cajon r ..
l• ( 551. 5 ( 15. 6 + (
52 = e ;:: 7LM2 LM5A
EDUS) EDUS)
EDUS) Meter Meter
To S To LG From EC From EC LA
j• ( LM8 + ( 921. 7
LM4 ( 311 MESA
Meter EDUS] Meter EDUS) TOTAL
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
LAKESIDEIALPINE
LAKESIDE
L
ALPINE
TOTAL
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
LEMON GROVE
Total
Winnett c8 Akins & Imperial & Lemon Net from
Oriole St 69th 1... Viewerest Grove to La Mesa
LG1M + LG2M LG4 3V ( 921. 7
Meter Meter Meter ) 1547. 63 EDUs
EDUs)
4G3;+ ED+ c:; Y!.TlcE;
Angelus 69th &
College
Navy
Avenue Evelyn
Avenue
Housing
12 EDUs) { 4 EDUs) (
498. 6 {
278 EDUs)
EDUs)
College 69 & College LEMON
Grove Gibson Grove Way GROVE
25.6 EDUs) ( 3 EDUs) { 161 EDUs) TOTAL
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
NATIONAL CITY
33r° St
2l"& 2262 West n 7th
Hoover Hoover HToover 15
NC Yard
Wilson
NC2
Meter
NC3A NC3B NC3Cr & HC NCS
Meter Meter Meter 2 EDUS Meter
Southland
achac Olive Bonita
Nordics: Stockman Ave.
htd. Park
North
Avenue Paradise
NC7M 5
to (
76. 5 + ( + ( 6 + ( 47 Meter Nleter
i •: 17U) (
46 EDUS) EDUS) DUs
ache ros ect
Ave. NC' m SV SWRoad ter 5P In[ er--P ^envy I3Qi11tA Road SV [ a South t n i
i ( S2.? 2' Y..} [: 39. 1f% 1 Comp[ amix cum romisNCSM EDUS
f36 EDUS)
Meter ! teter M ` 1
f to 1 CDU;)
Harbor Paradise Olive
Delta St. L3alhergia Drive Vat Ave. l2achael.
NC6 Meter NC14 NC31
ll 263
NC12 EDUS Meter Meter Meter Meter )
6 Nordics Lorenz Mariposa
Bryanview
ECUs) {
l6 EDUS)
E ( 42D( JF.. l] ( 18
Ebbs
Delta St Navy NATIONAL
Sports 291 (
100. 5 Center CITY EDUS)
EDUs) TOTAL
EDUS
7
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
NAVY
Amphibious Base North Island
Meter { C: 2) I11 ( Meter ( C3)
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
OTAY
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
PADRE DAM
Padre Dam Lakeside Simeon Dr. - TL;-J
Padre Dam
Meter PD1B Meter LS2 ( 413 EDUs) ";" Meter PD2
Cowles Mtn. + 1 Treviso PADRE DAM
270 EDUs]) . ( 186 EDUs] TOTAL
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
P0 WAY
springhurst La Camino Holland Eastview
Manda Del Norte Canyon Ct.
Poz s ':•
53 POL PO3M PO4
Meter EDUs) Meter Meter Meter
t
Creek Stone
Road Springhurst
Can Yo
PO
POFi { 727. 1 A
TOTALAL
Meter {
72 EDUs)
EDUs)
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
SPRING VALLEY
rhane
ros ect
AcreslAlta SV is NC NC w SV
5th ( 52. 72%; Inter -Agency Inter -Agency
Drive [ 39. 1 Compromis. ( Clwmmise
SVSM + ( 84. 4
N
to NC ( 144 EDU%) [ 36 Eol1s)
Meter EDUs)
RAetrr
M1t
From SubTotal ubvIe a
NC
To SV To S4' To SV La Hicsa
Chula to SV t• Lhi2 l LM5A LM8
ICBM Vista to
Meter Meter Meter ( 52
Meter SV EDUs)
ubTo[ a
LemParkbrook anzana Noeline
Grove
BOtli[ a lv rthinglon
crow to Way Street Avenue
Slretn
1 SV $ O1 t (
439 ( 197 ( 109 rar•.oura
1, 547. 63 Meter
EDUS] EDUs) EDUs)
EDUe)
lnnsdale Ellenwood Delrose
Avenue
Cireenridgc Circle Avenue
Crestmore
Avenue (
North
Avenue
51 { IUEDUs} {
l[] 9 ( 8 EDUs)
EDUs) ( 9 EDUs) EDUS)
Potrero Carlsbad
Street Street SP Li1fG
t (
6 l
Street
Otay Net VALLEY
TOTAL
EDUs) EDUs)
Sub3btaI Chula Vista to SV = Combined Housecounts —Acacia Ave + CV5 + CV6 + CV7M + CV$ + CV9 + CV10 + CVI1 +CV12 CVl4
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
WINTER GARDENS
Winter Gardens WG House Count WINTER
GARDENS
Meter{ WG1M) 1, 383 EDUs
TOTAL
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
CITY OF SAN DIEGO
I
SD33
Meter
ete
Avenue
ATeter { 2551. 6
EDUs)
SD7B 1 Meter ete t. i
i
Merer
llo av f... SDI$
Anna
SD19 I Street
Meter t5 4
EDUs)
LG to
SD9 ® San
Meter Qiego 4.
Net
s
et E
Meter
Sll
Meterer
Commercial
1 SITCii
1, 418. 6
EDUs)
ECIB
Meter
j
SD7A
Meter
LM
South to
San
Diego
Net)
SD2A SD2$'
deter Meter
SDD40M S2 Meter 20
Meter 2.
SD6 Meter
MCter. .. Padre
Lakeside Dam
Net Net Meter
ti el SD9D ®
NC7M Meter
Meter Sports
Area
Blvd.
498
EDUs
SD42M
Meter
i•
Del Mar Net
LM
North
to San
Diego
Net
Beach
Street
1,
944. 2 EDUs)
NC9M
Meter
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
CITY OF SAN DIEGO ( Continued)
f Jl ive achae
Mete + Mete ( 6 + Mete
Ave. +
Metcr Meter ({ Nieter ( ete
4G
Me# er
EDUs) EDUs
Q c3•©,,' Rachae
Me
o
Ave.
MeSouth ( 43
EDUs) Alta
San Diego brive
HC SD 10 vti[
rk Amphnhea[
er • PCI Au[
o urk& 94. 4 Through Meter o, eter EDUs)
SPV Total f°' Y"' t" Georgia
Palm ISZM
Street Avenue I
II13N12
5B1 Nieter (
170. 5 (29. 5 'Meter Meter EDUs)
EDUs) mall
SD Elm 1•
fouse SDI1
Si311 ASDI SStreet 17
Count
Meter
Meter '. Meter Count (
1,
455 EDUs)
EDUs) USN4
USN5 USNS I.,>'. USN11 SAtif Meter`
Ile# er + Meter ''' I
Metcr TOTAL
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
Exhibit G
Sample of the Interest Calculation
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
Eshlhlt G - Sample of thn Interest (' alculutlon (SCCl1OII 6. 6) Purpose: To ducuinunt assumptions usal to account for the time vahio of money for shared Pure Water rods [ Allocated Shared Costs) chat were a5a5ctl to be reeuncilW au a lei srt4nc based on tinal Phase I project costs. This is disuusscd in Sucl ion f,6; Rcallocal ion of PWP Costs incumd since FY2014 and cited in Section 6.6. 1. 3. Sue the example" Calcu later Spreadsiart- helow : uid 1CCorrrpanyi ng (oriole',. C 6 E F C H I J K L M Rime
Ing ]Ielro Iriglnal
MerPost tonix cmeu
Subject Balance Subject to Yearly lnlerml 3slimared PA Annual Interest 50150 Expenses From 3[Mru Spli[ SJrlglitat Water Original riginal Allocation to In rertst
Interest Earnings share Rate lha[ Year Split
Ys Mtero Sham Hater Shaer Share 50?e
Cusl - Metro New Ac[ ivity+ I'ntu ICompounded Average share of Sax Diego City Share%) Year Balance Prior Monthly) Interest Earnings} Treasurers) In[cres[ Earning) FY 2014 5630.
109 50% 50% 5315. 055 5315. 055 5283. 549 531, 505 31, 505. 46 5138, 27 541. 48 0. 438% FY 2015 52, 476, 617 5[146 33, 1, 238, 309 51 , 2311, 309 51. 114, 478 123, 831 5155. 474, 59 587[.33 261. 40 0. 559% FY 201E 54, 503, 182 50°4 5019. 52. 251. 541 52. 251. 591 S2, 026, 432 5225, 159 5381, 505, 03 55,971.03 5891. 31 0. 776% FY 2017 57, 398, 893 50% 50% 3, 699, 447 51, 699, 447 5.3,.329, 502 5369, 945 754. 420.72 911.150 19 2, 445. 03 1. 075"., FY 2014 56. 194. 711 50% 50% 53. 1977, 355 51. 097, 355 52, 787.620 5309, 736 51, 072, 306. 3E 4.793. 19 4. 434, 96 1, 370°. FY 2019 7, 944, 739 50?% 59% 53, 922, 369 53. 922, 369 53. 530, 132 5392_, 237 51, 479326. 46 31, 230. 90 9,369. 27 2. 091% FY 2020 SiA18, 735 50% 50% 54, 1109, 367 64. 009,. 967 53, 6091, 411 5400, 937 5!, 911.594, 09 543. 708,6! 513, 11^-. 58 2.263% FY 2021 50% 50% 50 0 50 0 51, 955, 202. 70 529, 649. 45 59,$94. 84 1. 506% FY 2022 50% 59% 1, 984, 852. 16 16, 257. 11 4,877. 13 0. 316% FY 2023 32% 68% 2, 001, 109. 26 535, 993,!5 510. 797. 94 1.784% FY 2024 32% 68% 2, 037, 102. 41 59, 323. 71 17, 797. 11 2. 974% FY 2025 32% 61% I OD FY 2026 32%
63% TBD FY 2027 32%
68% TOII Totals 37, 066,
99$ 19, 533, 493 518, 533. 493 516, 690,143 1,853, 359 513, 764, 299 243, 077 72, 923 N/ A Pending Finn] Aiclirs; Estirnalod Final Mcrro
0of Pure Water Costs [Oran) 4594 lunar vl JPA °
e Share of Melee Ex noes ( Draft) 30° 8
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
Exhibit G - Sample of the Interest Calculation ( Section 6. 6) ( Coatlnued) Prnredurcx and Assamolions:
The City prupuscs the following procedures be used to allocate these seeds. These costs. will be allocated 1 year after subshwlial complutiurt of Purr Water Phase I as pan of the annual Atalil of Metro costs Pnijecicd to be annual audit of mdroactivity for Fiscal Year 2_026). The City wi11 prepare ayearly updare mthe calukunr as part of the preparnion I'ur the yearly nieun andil. Column Desc riu[fon: Cost
Included (Column C) This column represenis cost subject to this ealcu later. lids includes. Porchasc Orders (and their associated expenditures) that have been split SIt' t51Y:: (5111511 POs) front 2014 in 2022 and have beam included aipan of each yearly audit of M1ero JP.APure Wa ereists. This xheel is prepared bythe City and reviewed bythe )P.A's cesi ultimisOn a yearly hasin to determltle samples for the Pure Water O&M cmtit. 5. Alter awavding of all Pure Water conrtnkl iont conirecEi, new cases will site an updated percentage based oil actual awarded construction contracts. This date will be called out on tike purchase order sheer arui anew line net the culeltlutor will be oddest to inxk the change inpert rat allocation. Open purchase omlers using the 50151) pItt will be separated on the calcuaaior sheet until they are fully spent, dosed or amended inthe new split. Original Splits a {Column & F.) These columns split the total en5Cs orthe 50150 POs based on their nrigi sal'liaro between the water and Moire funds. This establishes cacti funds ill itial share of the casts Original Share (Column F & C) These columns split the total costs in Column C by the percentages in Celmnns ti and E. hictca Pat A1kn: uion Shawl Column H) This column uses Metro funds anal share of phase I costs, as a percentage of Iulal prujccl costs, and applies it to carts included in Column C'. This represents line actual share of mats hosed on the final allocation costs. tmounis
Subject to Interest ( Colunul ll This column [ tikes the difference bet w;et the initial splils for Memo ( Column Ft and the Metro post allocation share (Column H)- These are the new expemdi[ nres Chain that fiscal year subject to i he interest calculation. Running
Metro Balance Subject In This column takes any prior year balance in Column J, the pritar year accrued interest in Column K and adds the new• cs1ttild inures Cram Column I. This is the icial balanced Interest ( Caltntltl 1) used to Caleltlale each year' siiltct- 5t owed. Yearly interest Earnings ( Column K) This colulnn takes the anmal interest earnings shown in Column Mand assumed monthly colnpnund ingof Metro balance in Column J, Compounding period is consistent with the Clip' s monthly interest earnings paid en City funds. Estinimed PA share ( Column L) This column es[tmnles the (tortion of inte tst carvings that is expected to be credited in the Panicipal ing Ay •noes. Individual . lyencies will be credited during the audit Col lmving one year after the substantial completion of Pure Water Phase 1, Agencies will be credited at wcighled eserage of costs lrum 2014 to one year rifler substantial completion of I'hase I. based on the PA' s individual annual percent share of Metro costs. Annual Inter( ti Rate ( Column Ad) This column shows the annual perrent relums out funds invested by [he City Treasurer. This is based on the Treasurers annual return on investmcn[ s as invested udder tine City' sinvestment policy. This is the raw used to calculate yearly interest owed. Nutcs This calculalar was designed to account for tike time value of money related to (50150 POs(. If additiutnal Phase Iitem OCIP expenses, Revenue, etc.} wed to aceouni Ion -the lime value of money, the nssumpt inns used in Columns I -K will nmnioing caasistcnl in [hose calculat ioln& Columns Cthrough Fl and the associated penenttges used will be adapted to fu the types of cools being alloeatcd,
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
Exhibit H
Summary of Billings from County Water Authority
Showing Costs for Untreated Water
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
Sample Bill from the County Water
Authority for all city of San Diego
Water purchases for the month of San Diego County
December 2024 to provide clarity for
any sewer only providers. Additional Water Authority
documentation will be provided at a
later date walking from this bill to the A Public Agency purified water calculation 4677 Overland Avenue, San Diego, California, 92123- 1233 858) 522- 6673 FAX ( 858) 522- 6561
Billed to:
San Diego, City of
The City of
SAN DIEGO-)
Service Address:
2797 Caminito Chollas
San Diego, CA 92105 -
December 2024
Invoice Summary
Mailed: 1/ 10/ 2025
Invoice Number: 1224- 15
Due Date: 2/ 14/ 2025
Net Deliveries Current Month Volume ( AF)
Adjustment Volume
AF)
Tier 1 Total Treated Water Delivered 2, 081. 1
Tier 1 Total Untreated Water Delivered 7, 970. 5
Tier 1 Usage 10.051. 6
Supply Charges Volume ( AF) Rate ($/ AF) Total ($)
CWA Forced Delivery - Untreated 231. 3 1, 200.00 277, 560.00 CWA Regular Meter Delivery - Treated 2, 069.2 1, 600.00 3, 310, 720. 00 CWA Regular Meter Delivery - Untreated 12, 973.7 1, 200.00 Water Exchanges Volume ( AF) Rate($/ AF) Total ($)
CWA Total To Other Agencies Untreated Water 5, 285. 0) 1, 200.00 6, 342, 000. 00) CWA Total From Other Agencies Treated Water 11. 9 1, 600.00 19, 040. 00 CWA Total From Other Agencies Untreated Water 50.5 1, 200.00 60,600. 00 Subtotal 5, 222. 6) 6, 262, 360. 00)
Subtotal 10, 051. 6 $ 1, 899, 752. 40
Fixed Charges Total ($)
CWA Customer Service Charge 933,611. 00
CWA Emergency Storage Charge 2, 197, 725. 00
CWA Infrastructure Access Charge 1, 760, 089. 00
CWA Supply Reliability Charge 1, 504,825. 00
CYTD Volume ( Al)
17, 964. 3
96, 706.3
114, 670. 6
CYTD Volume ( AF)
46, 134. 1
17, 627.4
129, 500.4
193, 261. 9
CYTD Volume ( AF)
79, 483. 9)
336.9
473. 1
78,673. 9)
Generated Date: 01/ 10/ 2025 11: 21 AM
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
hA San Diego County
Water Authority
A Public Agency
4677 Overland Avenue, San Diego, California, 92123- 1233 858) 522- 6673 FAX ( 858) 522- 6561
Billed to:
December 2024
Variable Charges VoltWo119)5umma Rate($/ AF) Total ( 5) Transportation Charge - Meter Delivery 15, 274. 2 $ 189. 00 $ 2, 886,823.80 Transportation Charge - Water Exchange ( 5,222.6) $ 189.00 ($ 987,071. 40) Variable Charges
Transportation Charge - Meter Delivery
Transportation Charge - Water Exchange
San Diego, City of
The City of r
SAN DIEGO
Service Address:
2797 Caniinito Chollas
San Diego, CA 92105 -
Volume ( AF) Rate($/ AF)
15, 274. 2
5, 222. 6)
189. 00
189. 00
Mailed: 1/ 10/ 2025
Invoice Number. 1224- 15
Total ($)
2, 886, 823. 80
987, 071. 40)
Due Date: 2/ 14/ 2025
Fixed Charges Total ($)
MWD Capacity Reservation Charge
MWD Readiness -to -Serve Charge
287,980.00
406,779.00
Subtotal 7,091, 009.00
Current Balance $ 21, 885, 121. 40
Previous Balance $ 17, 919, 593. 50
Total Due And Payable $ 39, 804, 714. 90
REMIT TO:
SAN DIEGO COUNTY WATER AUTHORITY
4677 Overland Avenue
San Diego, CA 92123- 1233
Payment is due on the last business day of the month and shall be delinquent if not received in investable funds by 2 p.m. of the tenth business day of the following month.
Delinquency charges are 1% of the total amount if paid within live business days of the delinquency, 2% thereafter. Reference San Diego County Water Authority Ordinance No. 2007- 03 Revenue Collection Policy for a complete explanation of billing and payment for water deliveries.
Generated Date: 01/ 70/ 2025 11: 21 AM
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
hA San Diego County
Water Authority
A Public Agency
4677 Overland Avenue, San Diego, California, 92123- 1233 858) 522- 6673 FAX ( 858) 522- 6561
Billed to:
December 2024
San Diego, City of
Invoice Detail
The Cityof SAN
al EGGS IMau1eth 1/10/ 2025 Due Date: 2/14/ 2025 Invoice Number: 1224- 15 Page 3 of 8 Service
Address: 2797
Caminito Chollas San
Diego, CA 92105 - Supply
Charges CWA
Forced
Delivery - Untreated Meter
No Begin Read End Read 1000 CU. FT. AC. FT. Rate($/ AF) Dollars($) Over Weir,WEIR 248, 532 248, 761 228 5. 2 $ 1, 200. 00 $ 6, 240. 00 San Diego, 02 2, 012, 753 2, 022, 602 9, 849 226. 1 $ 1, 200. 00 $ 271, 320. 00 Untreated Water Subtotal 231. 3 $ 277, 560. 00 Regular
Meter Delivery - Treated Meter
No Begin Read End Read 1000 CU. FT. AC. FT. Rate($/ AF) Dollars($) San Diego, 27 197, 491 210, 099 12, 609 289. 5 $ 1, 600. 00 $ 463, 200. 00 San Diego, 30 3, 079 3, 080 2 0. 0 $ 1, 600. 00 $ 0. 00 San Diego, l0 3, 300, 807 3, 316, 240 15, 433 354. 3 $ 1, 600. 00 $ 566, 880.00 San Diego, ll 11, 413, 060 11, 461, 025 47, 966 1, 101. 1 $ 1, 600. 00 $ 1, 761, 760. 00 San Diego, 14 5, 034, 606 5, 046, 789 12, 183 279. 7 $ 1, 600. 00 $ 447, 520. 00 San Diego, 15 3, 837, 922 3, 839, 738 1, 816 41. 7 $ 1, 600. 00 $ 66, 720. 00 SD 18/ 21 Bypass, 7,
490 7, 616 127 2. 9 $ 1, 600. 00 $ 4, 640. 00 18/
21 B/ P Treated Water Subtotal 2, 069. 2 $ 3, 310, 720. 00 Regular Meter Delivery - Untreated Meter
No Begin Read End Read 1000 CU. FT. AC. FT. Rate($/ AF) Dollars($) Generated Date 07/ 10/ 2025 11: 27 AM
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
San Diego County
Water Authority
A Public Agency
4677 Overland Avenue, San Diego, California, 92123- 1233 858) 522- 6673 FAX ( 858) 522- 6561
Billed to:
San Diego, City of
The Cityof * SAN
DIEGO) Service
Address: 2797
Caminito Chollas San
Diego, CA 92105 - December
2024 Invoice
Detail Mailed:
1/10/ 2025 Invoice
Number: 1224- 15 Due
Date: 2/14/ 2025 Page
4 of 8 Supply
Charges CWA
Leakage (
SD -1),01 0 31 540 12. 4 1, 200. 00 14, 880. 00 San
Diego, 28 7, 377, 561 7, 443, 701 66, 141 1, 518. 4 1, 200. 00 1, 822, 080. 00 San Diego, DCFSV66 1, 434, 378 1, 651, 079 216, 701 4, 974. 8 1, 200. 00 5, 969, 760.00 San Diego, 05A 9, 627, 449 9, 733, 405 105, 956 2, 432. 41, 200. 00 2, 918, 880.00 San Diego, 058 8, 808, 476 8, 932, 713 124, 237 2, 852. 1 1, 200. 00 3, 422, 520. 00 San Diego, 05C 1, 405, 570 1, 428, 831 23, 261 534. 0 1, 200. 00 640, 800.00 San Diego, 06A 2, 967, 595 2, 969, 351 1, 756 40. 3 1, 200. 00 48, 360. 00 San Diega, 068 WEIR 1, 591, 412 1, 591, 432 20 0. 5 1, 200. 00 600. 00 San Diego, 20 11, 002, 113 11, 028, 633 26, 520 608. 81, 200. 00 730, 560.00 Untreated Water Subtotal 12, 973. 7 $ 15, 568, 440.00 Supply
Charges Subtotal 15, 274. 2 $ 19, 156, 720. 00 Supply
Charges Total 15, 274. 2 $ 19, 156, 720. 00 Water
Exchanges CWA
To
Other Agencies Untreated Water Exchange
Location To Agency AC. FT. Rate($/ AF) Dollars($) Comments DCFSV6G San Diego County Water Authority 4, 974. 8) $ 1, 200. 00 5, 969, 760.00) credit for no purchase Del Mar (NA) Del Mar, City of 78. 9) $ 1, 200. 00 94, 680. 00) San Vicente Acct San Diego County Water Authority 231. 3) $ 1, 200. 00 277, 560. 00) To Other Agencies Untreated Water Subtotal5, 285. 0) 6, 342, 000.00) Generated Date- 01/ 10/ 2025 17: 27 AM
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
hA San Diego County
Water Authority
A Public Agency
4677 Overland Avenue, San Diego, California, 92123- 1233 858) 522- 6673 FAX ( 858) 522- 6561
Billed to:
San Diego, City of
The City of
SAN DIEGQJ
Service Address:
2797 Caminito Chollas
San Diego, CA 92105 -
December 2024
Invoice Detail
Mailed: 1/ 10/ 2025
Invoice Number: 1224- 15
Due Date: 2/ 14/ 2025
Water Exchanges
CWA
From Other Agencies Treated Water
Exchange Location From Agency AC. FT. Rate($/ AF) Dollars( S) Comments El Camino Real Santa Fe I. D. 1. 0 1, 600.00 1, 600.00
Highland Ct. Santa Fe I. D. 0.2 1, 600.00 320. 00
Otay TP Otay W. D. 10. 7 1, 600.00 17, 120. 00
From Other Agencies Treated Water Subtotal 11. 9 19, 040.00 From Other Agencies Untreated Water
Exchange Location From Agency AC. FT. Rate($/ AF) Dollars($) Comments Fletcher Well Helix W.D. 50. 5 1, 200.00 60, 600.00
From Other Agencies Untreated Water Subtotal 50. 5 60, 600. 00 Water Exchanges Subtotal ( 5, 222. 6) ($ 6, 262, 360. 00) Water Exchanges Total ( 5,222. 6) ($ 6, 262, 360. 00)
Variable Charges
Transportation Charge - Meter Delivery
Meter No./ Location AC. FT. Rate($/ AF) Dollars($) Comments Leakage ( SD - 1), 01 12. 4 189.00 2,343.60
Over Weir,WEIR 5. 2 189. 00 982.80
San Diego, 27 289. 5 189. 00 54, 715. 50
San Diego, 28 1, 518. 4 189. 00 286, 977. 60
San Diego, 30 0.0 189. 00 0.00
San Diego, DCFSV66 4,974. 8 189. 00 940, 237. 20
Generated Date. 07/ 10/ 2025 11: 21 AM
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
San Diego County
Water Authority
A Public Agency
4677 Overland Avenue, San Diego, California, 92123- 1233 858) 522- 6673 FAX ( 858) 522- 6561
Billed to:
San Diego, City of
The Cityof SAN
DIEGQ) Service
Address: 2797
Caminito Chollas San
Diego, CA 92105 - Variable
Charges December
2024 Invoice
Detail Mailed:
1/10/ 2025 Invoice
Number: 1224- 15 Due
Date: 2/14/ 2025 Page
6of 8 San
Diego, 02 226. 1 189. 00 42, 732. 90 San
Diego, 05A 2, 432. 4 189. 00 459, 723. 60 San
Diego, 05B 2, 852. 1 189. 00 539, 046.90 San
Diego, 05C 534. 0189. 00 100, 926.00 San
Diego, 06A 40. 3 189. 00 7, 616. 70 San
Diego, 066 WEIR 0. 5 189. 00 94. 50 San
Diego, l0 354, 3 189. 00 66, 962.70 San
Diego, 11 1, 101. 1 189. 00 208, 107.90 San
Diego, 14 279. 7189. 00 52, 863. 30 San
Diego, l5 41. 7 189. 00 7, 881. 30 San
Diego, 20 608. 8 189. 00 115, 063. 20 SD
18/ 21 Bypass, 18/21 B/ P 2. 9 189. 00 548. 10 Transportation Charge - Meter Delivery Subtotal 15, 274. 2 2, 886, 823. 80 Transportation Charge - Water Exchange Meter
No./Location AC. FT. Rate($/ AF) Dollars($) Comments DCFSV66 4, 974. 8) 189. 00 940, 237.20) credit for no purchase Del Mar ( NA) 78. 9) 189. 00 14, 912. 10) El
Camino Real 1. 0 189. 00 189. 00 Fletcher
We]1 50. 5 189. 00 9, 544. 50 Highland
Ct. 0. 2 189. 00 37. 80 Otay
TP 10. 7 189. 00 52, 022. 30 San
Vicente Acct 231. 3) 189. 00 43715. 70) Transportation
Charge - Water Exchange Subtotal5, 222. 6) 987, 071.40) Generated Date: 07/ 70/ 2025 11. 2 AM
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
hA San Diego County
Water Authority
A Public Agency
4677 Overland Avenue, San Diego, California, 92123- 1233 858) 522- 6673 FAX ( 858) 522- 6561
Billed to:
December 2024
San Diego, City of
Invoice Detail
The Cityof Mailed:
1/10/ 2025 SAN
3IEGG) Due
Date: 2/14/ 2025 Invoice
Number: 1224- 15 Page 7of 8 Service
Address: 2797
Caminito Chollas San
Diego, CA 92105 Variable
Charges Subtotal 10, 051. 6 1, 899, 752.40 Variable
Charges Total 10, 051. 6 1, 899, 752.40 Fixed
Charges CWA
Customer
Service Charge Annual ($) Monthly ($) Annual
Customer Service Charge for Calendar Year 2024 11, 203, 332. 00 Customer Service Charge December 933, 611. 00 Emergency
Storage Charge Annual ($) Monthly ($) Annual
Emergency Storage Charge for Calendar Year 2024 26, 372, 700. 00 Emergency Storage Charge December 2, 197, 725. 00 Infrastructure
Access Charge Annual ($) Monthly ($) Annual
Infrastructure Access Charge for Calendar Year 2024 21, 121, 068. 00 Infrastructure Access Charge December 1, 760, 089.00 Supply
Reliability Charge Annual ($) Monthly ($) Annual
Supply Reliability Charge for Calendar Year 2024 18, 057, 900. 00 Supply Reliability Charge December 1, 504, 825.00 MWD
Capacity
Reservation Charge Annual ($) Monthly ($) Annual
Capacity Reservation Charge for Calendar Year 2024 3, 455, 760.00 Capacity Reservation Charge December 287, 980.00 Readiness -
to -Serve Charge Annual ($) Monthly ($) Annual
Readiness - to -Serve Charge for Fiscal Year 2025 4, 881, 348. 00 Readiness - to -Serve Charge December 406, 779.00 Fixed
Charges Subtotal 7, 091, 009. 00 Current
Balance 21, 885, 121. 40 Previous
Balance $ 17, 919, 593. 50 Total
Due And Payable $ 39, 804, 714. 90 Generated
Do[e: 07/ 10/ 2025 11: 21 AM
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
San Diego County
Water Authority
A Public Agency
4677 Overland Avenue, San Diego, California, 92123- 1233 858) 522- 6673 FAX ( 858) 522- 6561
Billed to
December 2024
San Diego, City of
Invoice Detail
The Cityof SAN
DIEGO' Service
Address: 2797
Caminito Chollas San
Diego, CA 92105 - REMIT
TO: SAN
DIEGO COUNTY WATER AUTHORITY 4677
Overland Avenue Sao
Diego, CA 92123- 1233 Mailed:
1/10/ 2025 Invoice
Number: 1224-15 Due
Date: 2/14/ 2025 Page8of8
Payment
is due on the last business day of the month and shall be delinquent if not received in investable funds by 2 p. m. of the tenth business day of the following month. Delinquency charges are 1% of the total amount if paid within five business days of the delinquency, 2% thereafter. Reference San Diego County Water Authority Ordinance No. 2007. 03 Revenue Collection Policy for a complete explanation of billing and payment for water deliveries. Generored Dote 07/ 10/ 2025 77:27 AM
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
EXHIBIT I
LIST OF ADMINISTRATIVE AGREEMENTS
NO. TITLE EFFECTIVE
DATE
AMENDMEN
T DATE
1. Agreement Between City of San Diego and
Participating Agencies in the Metropolitan Sewerage
System for Unified Management of Industrial Waste
Discharge Pretreatment and Enhanced Source
Control Programs
2. 48-
10- 23- 25
4907- 3419-6844
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
EXHIBIT J
EXHIBIT LIST
Exhibit Name Amended Date
A
Metro Facilities ( Electronic Exhibit); file name: 2025- 10 Exhibit A Metro Facilities. aprx; time stamp of file: 10/ 23/ 2025 3: 38 PM, software used to open and view file including version: ArcGIS Pro 3. 5. 0; included herewith as CD- ROM/ DVD- ROM
B Distribution of Wastewater System Capacity Rights
C
Administrative Protocol on Allocation of Operating Reserves and Debt Service Coverage to Participating Agencies
D Notice Listin
E Methodology for Contract Capacity Transfers
F Metro System Flow Formulas and Sampling Locations
G Sample of Interest Calculation
H
Summary of Billings from County Water Authority Showing Costs for Untreated Water
I List of Administrativereements J
Agreements
Exhibit
List 49-
10-
23- 25 4947-
3419- 6944
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
RESOLUTION NO. 2026- 009
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING THE SECOND AMENDED AND
RESTATED WASTEWATER DISPOSAL AGREEMENT,
DIRECTING THE METRO JPA REPRESENTATIVE TO
SUPPORT THE SAME AT METRO JPA MEETINGS, AND
AUTHORIZING MAYOR TO EXECUTE SAME
WHEREAS, the Point Loma Wastewater Treatment Plant (“ PLWTP”) is a regional facility in the Metropolitan Sewerage System (“ Metro System”) and is permitted to treat 240 million gallons per day (“ MGD”) of regional wastewater to an Advanced Primary Level. Operated by the City of San Diego, the PLWTP was constructed in 1963 and is the backbone of the Metro System; and WHEREAS, the City of Chula Vista’ s average of 16.7 MGD of wastewater is treated at PLWTP. The City of Chula Vista is one of 12 Participating Agencies (“ PAs”) that convey wastewater to PLWTP for treatment; and
WHEREAS, the Metro JPA is a joint powers agency composed of the 12 local public PAs each having the authority to provide and contract for the conveyance, treatment, and disposal of wastewater. The Metro JPA and the City of San Diego are partners in overseeing the PLWTP; and WHEREAS, the Federal Clean Water Act, passed in 1972, was amended to allow a modified permit ( waiver of secondary treatment) if the discharger could demonstrate the safe discharge of wastewater to the receiving water; and
WHEREAS, the 1998 Regional Wastewater Disposal Agreement was created, approved per Resolution No. 18968, and the Metropolitan Wastewater Commission ( Metro Commission) was formed; and
WHEREAS, the City of San Diego is implementing a phased, multi- year program designed to achieve compliance with the Clean Water Act and regionally produce up to 83 million gallons per day of safe, reliable potable water using new, expanded, or modified facilities, some of which will include Metro System facilities, in order to achieve secondary equivalency at the Point Loma Wastewater Treatment Plant; and
WHEREAS, implementation of the Pure Water Program will reduce wastewater discharges to the Point Loma Wastewater Treatment Plant, part of the Metro System , where a large portion of the Participating Agencies’ wastewater is currently treated and disposed of by discharging it into the Pacific Ocean; and
WHEREAS, the City of San Diego and the Participating Agencies, amended the 1998 Agreement by executing an Amended and Restated Regional Wastewater Disposal Agreement ( the ARA”), approved per Resolution No. 2018- 187, to address the costs and revenues associated with Phase 1 of the Pure Water Program, including specific cost allocations related to the construction, expansion, and/ or modification of Metro System facilities and Water Repurification System facilities designed to produce up to 30 MGD of Repurified Water (“ Phase 1”); and Docusign Envelope ID: 0A0F6390- 9883- 4DD8- B670- 6DAF17958B03
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
Resolution No. 2026- 009
Page No. 2
WHEREAS, Section 14.2 of the ARA provided that the Parties may amend the ARA by a written agreement between the City of San Diego and all Participating Agencies stating the Parties’ intent to amend or supplement the agreement; and
WHEREAS, in an effort to address in good faith the outstanding items described in Section
2.9 of theARA, and comprehensively and equitably address the costs, revenues, and billing system associated with the Pure Water Program and the related construction, expansion , and/or modification of Metro System facilities beyond Phase 1, the City of San Diego and Participating Agencies, including the City of Chula Vista wish to amend and restate the ARA as provided herein.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it approves the Second Amended and Restated Regional Wastewater Disposal Agreement between the City of San Diego and the Participating Agencies, in the form presented, with such modifications as may be required or approved by the City Attorney, a copy of which shall be kept on file in the Office of the City Clerk, and authorizes and directs the Mayor to execute the same .
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it authorizes and directs the Metro JPA representative to support the Second Amended and Restated Regional Wastewater Disposal Agreement at Metro JPA meetings.
SIGNATURES ON THE FOLLOWING PAGE]
Docusign Envelope ID: 0A0F6390- 9883- 4DD8- B670- 6DAF17958B03
City of Chula Vista - City Council
September 1, 2026 Post City Council Agenda
esolution No. 2026- 009
Page No. 3
Presented by Approved as to form by
Eddie Flores Marco A. Verdugo
Assistant Director, City Attorney
Engineering & Capital Projects Department
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 20th day of January 2026, by the following vote:
AYES: Councilmembers: Chavez, Fernandez, Inzunza, Preciado, and McCann NAYS: Councilmembers: None
ABSENT: Councilmembers: None
John McCann, Mayor
ATTEST:
Kerry K. Bigelow, MMC, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2026- 009 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 20th day of January 2026.
Executed this 20th day of January 2026.
Kerry K. Bigelow, MMC, City Clerk
Docusign Envelope ID: 0A0F6390- 9883- 4DD8- B670- 6DAF17958B03
City of Chula Vista - City Council
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SECOND AMENDED AND RESTATED
REGIONAL WASTEWATER DISPOSALAGREEMENT
BETWEEN
THE CITY OF SAN DIEGO
AND
THE PARTICIPATING AGENCIES
IN
THE METROPOLITAN SEWERAGE SYSTEM
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TABLE OF CONTENTS
Page
1. DEFINITIONS .................................................................................................................... 3
2. OWNERSHIP AND OPERATION OF THE METRO SYSTEM ...................................... 9
2.1 Rights of the Parties ................................................................................................ 9
2.2 Metro System Services ........................................................................................... 9
2.3 Flow Commitment ................................................................................................ 10
2.4 Funding Obligations.............................................................................................. 10
2.5 Limitations on Types and Condition of Wastewater ............................................. 11
2.6 Enforcement Actions ............................................................................................. 12
2.7 Right of First Refusal ............................................................................................ 13
2.8 Uniform Enforcement of Pretreatment Program by City ...................................... 14
2.9 Wastewater Generated at Military Bases .............................................................. 16
3. CAPACITY RIGHTS ........................................................................................................ 16
3.1 Contract Capacity.................................................................................................. 16
3.2 Inter-Agency Transfers of Contract Capacity ....................................................... 17
3.3 New Contract Capacity ......................................................................................... 18
3.4 Reductions in Metro System Capacity .................................................................. 18
3.5 Restrictions on Veto of Transfers and Acquisitions of Capacity ........................... 18
3.6 Amendments to Exhibits B ................................................................................... 18
3.7 The South Bay Ocean Outfall ............................................................................... 19
4. FINANCE, BUDGETING, AND ACCOUNTING: PAYMENT AND MONITORING PROVISIONS ................................................................................................................... 19
4.1 Payment for Metro System Facilities .................................................................... 19
4.2 Payment for Additional Metro System Facilities .................................................. 19
4.3 Payment for Operation and Maintenance ............................................................. 19
4.4 Charges Based on Flow, Strength and Fixed Capacity: Exception ....................... 20
4.5 Monitoring Flow and Strength .............................................................................. 21
5. FINANCE, BUDGETING, AND ACCOUNTING: SYSTEM OF CHARGES............... 22
5.1 Charges Authorized ............................................................................................... 22
5.2 Functional Allocated Billing (FAB) ...................................................................... 22
5.3 Metro System Costs .............................................................................................. 23
5.4 Excluded Costs...................................................................................................... 23
5.5 Metro System Revenues and Allocations ............................................................. 24
5.6 Excluded Revenue ................................................................................................ 24
5.7 Estimate and Billing Schedule and Year End Adjustment .................................... 24
5.8 Financial Statements ............................................................................................. 25
5.9 Debt Financing ...................................................................................................... 26
5.10 Allocation of Operating Reserves and Debt Service Coverage ............................ 26
5.11 Amending the System of Charges ......................................................................... 26
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6. FINANCE, BUDGETING, AND ACCOUNTING: PURE WATER PROGRAM COST ALLOCATION AND REVENUES – PHASE 1 .............................................................. 26
6.1 North City Water Reclamation Plant Modification ............................................... 26
6.2 New, Expanded or Modified Metro System Facilities .......................................... 26
6.3 Costs Excluded from Metro System Costs – Phase 1 ........................................... 27
6.4 North City Water Reclamation Plant Improvement Costs Included as Metro System Costs ......................................................................................................... 27
6.5 Reallocation of PWP Costs incurred since FY 2014 ............................................ 28
6.6 Revenue Sharing for Repurified Water ................................................................. 29
6.7 Capital Expense Rate ............................................................................................ 30
6.8 Amending Pure Water Program Cost Allocation and Revenues – Phase 1 .......... 33
7. FINANCE, BUDGETING, AND ACCOUNTING: PURE WATER PROGRAM COST ALLOCATION AND REVENUES – PHASE 2 .............................................................. 33
7.1 Pure Water Program – Phase 2 .............................................................................. 33
7.2 Costs Excluded As Metro System Costs ............................................................... 33
7.3 Revenue Sharing for Repurified Water – Phase 2 ................................................. 34
7.4 Capital Expense Rate – Phase 2 ............................................................................ 34
8. FUTURE NEGOTIATIONS AND COOPERATION ....................................................... 34
9. THE METRO COMMISSION ......................................................................................... 34
9.2 Advisory Responsibilities of Metro JPA ............................................................... 35
9.3 Delegation of Decision- Making Authority of the Metro JPA ............................... 35
9.4 Standing ................................................................................................................ 35
10. DISPUTE RESOLUTION ................................................................................................ 35
10.1 Mandatory Non-Binding Mediation ..................................................................... 36
10.2 Selection of Mediator ............................................................................................ 36
10.3 Mediation Expenses .............................................................................................. 36
10.4 Conduct of Mediation ........................................................................................... 36
10.5 Mediation Results ................................................................................................. 36
10.6 Performance Required During Dispute ................................................................. 36
11. INSURANCE .................................................................................................................... 36
11.1 City Shall Maintain All Required Insurance ......................................................... 36
11.2 Substantially Equivalent Coverage ....................................................................... 37
12. INTERRUPTION OF SERVICE ...................................................................................... 37
13. NOTICES REQUIRED UNDER AGREEMENT ............................................................ 37
14. EFFECTIVE DATE AND EXPIRATION ........................................................................ 37
14.1 Effective Date ....................................................................................................... 37
14.2 Expiration .............................................................................................................. 38
14.3 Contract Capacity Rights Survive Expiration ....................................................... 38
14.4 Abandonment ........................................................................................................ 38
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15. ADMINISTRATIVE AGREEMENTS ............................................................................. 38
15.1 Use and Process for Administrative Agreements .................................................. 38
16. GENERAL ........................................................................................................................ 40
16.1 Exhibits ................................................................................................................. 40
16.2 Electronic Exhibits and Attachments .................................................................... 40
16.3 Amendments to Agreement ................................................................................... 41
16.4 Construction of Agreement ................................................................................... 43
16.5 Declarations Re: Agreement ................................................................................. 44
16.6 Right to Make Other Agreements ......................................................................... 45
16.7 Statute of Limitations to Resolve Billing Issues ................................................... 45
16.8 Counterparts and Electronic Signatures ................................................................ 45
16.9 Transparency ......................................................................................................... 46
16.10 Incorporation of Recitals ....................................................................................... 46
16.11 Joint Exercise of Power ........................................................................................ 46 ACRONYM LIST:
ARA Amended and Restated Re ional Wastewater Disposal A reement COD Chemical Ox en Deman
CIP Capital Improvement Pro ect( s)
CPM Construction Pro ect Mana ement
CWA San Die o Count Water Authorit
ECAWP JPA East Count Advanced Water Purification Joint Powers Authorit FAB Functional Allocated Billin
MBC Metropolitan Biosolids Cente
MGD Millions of Gallons per Da
NCWRP North Cit Water Reclamation Plant
NPDES National Pollutant Dischar e Elimination S stem
PLWTP Point Loma Wastewater Treatment Plant
PWP Pure Water Pro ram
RSDP Re ect Stream from Demineralization Process
SBOO South Ba Ocean Outfall
SBWRP South Ba Water Reclamation Plant
TSS Total Suspended Solids
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SECOND AMENDED AND RESTATED REGIONAL WASTEWATER DISPOSAL
AGREEMENT
THIS SECOND AMENDED AND RESTATED REGIONAL WASTEWATER
DISPOSALAGREEMENT (“Agreement”) is made and entered into this 1st day of July, 2026, by and between the CITY OF SAN DIEGO, a municipal corporation ( the “ City”), on the one hand; and the CITY OF CHULA VISTA, a municipal corporation; the CITY OF CORONADO, a municipal corporation; the CITY OF DEL MAR, a municipal corporation; the CITY OF EL CAJON, a municipal corporation; the CITYOF IMPERIAL BEACH, a municipal corporation; the CITY OF LA MESA, a municipal corporation; the LEMON GROVE SANITATION DISTRICT, a political subdivision of the State of California; the CITY OF NATIONAL CITY, a municipal corporation; the CITY OF POWAY, a municipal corporation; the OTAY WATER DISTRICT, a political subdivision of the State of California; the PADRE DAM MUNICIPAL WATER DISTRICT, a political subdivision of the State of California; and the SAN DIEGO COUNTY SANITATION DISTRICT, a political subdivision of the State of California ( collectively, the Participating Agencies”), on the other hand. The City and the Participating Agencies may be referred to herein individually as a “Party,” and collectively as the “Parties.”
RECITALS
WHEREAS, the City and the Participating Agencies ( or their predecessors in interest) entered into that certain Regional Wastewater Disposal Agreement dated May 18, 1998 ( the “ 1998 Agreement”), which provided, among other things, for certain contract rights to capacity in the Metropolitan Sewerage System, a system of wastewater conveyance, treatment, and disposal facilities (“Metro System”) and the establishment of a mechanism to fund the planning, design, construction, operation, and maintenance of the Metro System by the City and the Participating Agencies; and
WHEREAS, the purposes of the 1998 Agreement were: ( 1) to replace the prior- existing sewage disposal agreements between the City and the Participating Agencies; ( 2) to provide certain contract rights to capacity in the Metro System to the Participating Agencies; ( 3) to establish a mechanism to fund the planning, design, construction, operation and maintenance of the Metro System by the City and the Participating Agencies as necessary to provide hydraulic capacity, and to comply with applicable law and with generally accepted engineering practices; and ( 4) to establish a system of charges which allocates the costs of the planning, design and construction of such new wastewater conveyance, treatment and disposal facilities as are necessary solely to provide for new capacity on a fair and equitable basis; and WHEREAS, on April 29, 2014 the San Diego City Council gave its approval and support for the Pure Water San Diego program by adoption of Resolution No. R-308906, which approved and supported the City’ s efforts to develop an implementation strategy to offload wastewater flow from the Point Loma Wastewater Treatment Plant through implementation of potable reuse, resulting in effluent discharged to the Pacific Ocean being equivalent to what would be achieved by upgrading the Point Loma Wastewater Treatment Plant to a secondary treatment plant secondary equivalency); and
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WHEREAS, the City is implementing a phased, multi- year program designed to achieve compliance with the Clean Water Act and regionally produce up to 83 million gallons per day of safe, reliable potable water using new, expanded, or modified facilities, some of which will include Metro System facilities, in order to achieve secondary equivalency at the Point Loma Wastewater Treatment Plant; and
WHEREAS, the Pure Water Program will not only benefit the City by producing repurified water, but also the Participating Agencies and their wastewater customers, especially if secondary equivalency is recognized through federal legislation amending the Clean Water Act. Specifically, implementation of the Pure Water Program will reduce wastewater discharges to the Point Loma Wastewater Treatment Plant, part of the Metro System where a large portion of the Participating Agencies’ wastewater is currently treated and disposed by discharging it into the Pacific Ocean.
By diverting wastewater from the Point Loma Wastewater Treatment Plant and reducing the effluent discharged into the Pacific Ocean, the City and the Participating Agencies will potentially avoid billions of dollars in unnecessary capital, financing, energy, and operating costs to upgrade the Point Loma plant to secondary treatment at full capacity. Avoiding such costs would result in significant savings for regional wastewater customers and achieve environmental benefits by reducing ocean discharge; and
WHEREAS, on or around November 2019, the East County Advanced Water Purification Joint Powers Authority ( the “ ECAWP JPA”) was created to implement a potable reuse program to improve local and regional water supply reliability to supply advanced treated recycled water to East San Diego County through the East County Advanced Water Purification Project ( the ECAWPProject”). The ECAWPProject is planned to capture and treat approximately 15 million gallons per day of wastewater that would otherwise be disposed of in the Metro System to produce an annual average supply of approximately 11.5 million gallons per day of new local drinking water. By diverting some wastewater and wastewater content away from the Metro System, the ECAWP Project has the ability to aid and contribute towards the City and region’ s efforts to produce a regional annual average of up to 83 million gallons per day of water suitable for potable reuse by December 31, 2035, as described in the Cooperative Agreement in Support of Pure Water San Diego executed by the City and certain environmental stakeholders on December 9, 2014.
The ECAWP Project includes a residuals bypass system that will convey RSDP ( as defined herein) from the advanced water purification facility, and Centrate from the solids dewatering process of the solids handling facility, to an existing regional sewage gravity pipeline owned and operated by the City for treatment and disposal; and
WHEREAS, effective on or around August 22, 2021, the City and the Participating Agencies amended the 1998 Agreement by executing an Amended and Restated Regional Wastewater Disposal Agreement ( the “ ARA”) to address the costs and revenues associated with Phase 1 of the Pure Water Program, including specific cost allocations related to the construction, expansion, and/ or modification of Metro System facilities and Water Repurification System facilities designed to produce up to 30 million gallons per day of Repurified Water (“ Phase 1”).
The ARA provided that within one year of its effective date, the Parties intended to meet and negotiate in good faith regarding one or more amendments to the ARAor to its Exhibits to address multiple outstanding items described in Section 2.9 of the ARA; and
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WHEREAS, Section 14.2 of the ARA provided that the Parties may amend the ARA by a written agreement between the City and all Participating Agencies stating the Parties’ intent to amend or supplement the agreement; and
WHEREAS, in an effort to address in good faith the outstanding items described in Section 2.9 of the ARA, and comprehensively and equitably address the costs, revenues, and billing system associated with the Pure Water Program and the related construction, expansion, and/ or modification of Metro System facilities beyond Phase 1, the City and Participating Agencies wish to amend and restate the ARA as provided herein.
NOW, THEREFORE, in consideration of the mutual promises set forth in this Agreement, the City and the Participating Agencies restate and amend the ARA and agree as follows:
1. DEFINITIONS
1.1 Administrative Agreement shall refer to a formal binding contract, approved under the process set forth in Section 15 of this Agreement, which implements technical, administrative, operational, and/or procedural details of this Agreement.
1.2 Administrative Approval is an approval mechanism authorized by this Agreement that refers to a City administrative process by which the subject of a particular action is presented to the City’ s Director of the Public Utilities Department or their designee for approval, based on discussion and evaluation according to sound engineering standards if applicable, and any additional requirements related to review for the action requiring the City’ s Administrative Approval as set forth in this Agreement.
1.3 Annual Average Daily Flow is the number, in millions of gallons of wastewater per day (“ MGD”), calculated by dividing total Flow on a fiscal year basis by the number of days in the applicable year, which is a term used for billing purposes.
1.4 ARA shall mean the Amended and Restated Regional Wastewater Disposal Agreement between the City and the Participating Agencies effective August 22, 2021.
1.5 Capital Expense Rate shall mean the same as the term is defined in Section 6.7.2.
1.6 Capital Improvement Costs means all costs of the planning, design, financing, construction, and/ or replacement necessary to render a capital project facility fully operational, including upgrades and reconstruction, consistent with the City’s policies and procedures. This includes costs for planning and environmental work; procurement of consultants or contractors to perform such work; construction management; investigative studies and pre-design work; labor and materials; inspection and testing; and financing cost including interest on financial instruments.
1.7 Centrate shall mean the liquid byproduct that results from the dewatering of digested solids as part of wastewater treatment processes.
1.8 Chemical Oxygen Demand or COD means the measure of the chemically decomposable material in wastewater, as determined by the procedures specified in the most
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current edition of “ Standard Methods for the Examination for Water and Wastewater,” or any successor publication which establishes the industry standard.
1.9 City shall mean and refer to the City of San Diego.
1.10 City’s Water Utility shall mean any and all facilities, properties, improvements and works at any time owned, controlled or operated by the City as part of the public utility system of the City for water purposes, for the development, obtaining, conservation, production, storage, treatment, transmission, furnishing and distribution of water and its other commodities or byproducts for public and private use (whether located within or without the City), and any related or incidental operations designated by the City as part of the Water System, including reclaimed and re-purified water.
1.11 City Water Utility PWP Costs are those Pure Water Program costs allocated to the City’s Water Utility and therefore excluded as Metro System Costs under Section 6.3 of this Agreement.
1.12 Contract Capacity is the contractual right possessed by each Participating Agency to discharge wastewater into the Metro System pursuant to this Agreement up to the limits set forth in Exhibit B, Distribution of Wastewater System Capacity Rights, attached hereto.
1.13 Contract Capacity Transfers shall refer to the capacity transfers initiated based on Metered Flow and Strength data using the methodology set forth in Exhibit E, Methodology for Contract Capacity Transfers, which change a Participating Agency’ s Contract Capacity, as set forth more fully in Section 4.4.3.1 and 4.4.3.2. These changes will generally be made to a single Participating Agency’ s annual Contract Capacity to correct capacity exceedances but can also be made to reduce a Participating Agency’s Contract Capacity.
1.14 CWA shall mean the San Diego County Water Authority.
1.15 ECAWP JPA shall mean the East County Advanced Water Purification Joint Powers Authority. The ECAWP JPA itself is not a Participating Agency or a Party to this Agreement.
1.16 ECAWPJPAAgencies shall mean collectively the City of El Cajon, the Padre Dam Municipal Water District, and the San Diego County Sanitation District.
1.17 ECAWP Project shall mean the ECAWP JPA’s project to capture and treat wastewater that would otherwise be disposed of in the Metro System to produce an annual average supply of approximately 11.5 MGD of new local drinking water, as well as other byproducts such as recycled water and energy recovery facilities.
1.18 Fixed Capacity shall mean the capacities for Monthly Average Daily Flow, Incremental Peak Flow, RSDP, COD and TSS for each agency as set forth in Exhibit B.
1.19 Fixed Capacity Charge shall mean the charges set forth in Exhibit B that are identified as “ Fixed Capacity Charges” that represent the Parties’ proportional charges for
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maintaining the Metro System. Items such as debt service are also included in the Fixed Capacity Charges.
1.20 Flow shall refer to the flow of wastewater discharged by the City and/ or one or more Participating Agency/ies into the Metro System.
1.21 Functional Allocated Billing or FAB shall mean the method for distributing all capital, operations, and maintenance Metro System Costs and Revenues on an annual basis by grouping expenses according to their purposes and the current approved Functional- Design Methodology.
1.22 Functional- Design Methodology shall mean the process of allocating fixed and variable Operation and Maintenance Costs and Capital Improvement Costs to Flow, RSDP and Strength parameters recognizing the benefits of both the design criteria and the primary function of a unit process.
1.23 Incremental Peak Flow shall mean the Peak Flow minus the Monthly Average Daily Flow.
1.24 Industrial Wastewater means all wastewater, excluding domestic wastewater, and shall include all wastewater from any producing, manufacturing, processing, institutional, commercial, service, agricultural, or other operation. These may also include wastes of human origin similar to domestic wastewater.
1.25 Industrial User means a discharger of Industrial Wastewater to a public sewer. A Participating Agency may be an Industrial User.
1.26 Joint Administrative Approval Process is an approval process authorized by this Agreement by which an Administrative Agreement may be created, revised, supplemented, replaced or terminated, subject to the review and approval process set forth more fully in Section 15.
1.27 MBC Return shall mean and refer to Centrate created at the Metropolitan Biosolids Center, 5240 Convoy St, San Diego, CA 92111. MBC Return shall contain Metered Flow, TSS and COD.
1.28 Metered Flow shall mean the amount or volume of wastewater captured by meters that exist throughout the Metro System, estimates from unit count areas, or agreed upon estimates of flows where unit counts are not appropriate. When meters are out of service, estimates can be used to fill in data gaps. These meters, which may or may not be owned by the City, are further defined in Exhibit F, Metro System Flow Formulas and Sampling Locations, which may be amended from time to time.
1.29 Metro Commission or Metro JPA is the advisory body described under Section 9.
1.30 Metro System Costs shall mean, at a minimum, those costs set forth in Section 5.3 and as otherwise set forth in this Agreement.