El Cajon City Council
February 24, 2026

Time and Location
2nd and 4th Tuesday of each month. 3:00 PM
Council Chambers
200 Civic Center Way
El
Cajon, CA 92020
Watch Online
elcajon.gov/videostreaming
or Facebook Live (comments are not monitored)
In-Person Comments
Members of
the public may address the City Council/Agency Members on any item listed on the agenda, or on matters which are not listed on the agenda but are within the subject matter jurisdiction of the City Council, Housing Authority and Successor Agency to the El Cajon Redevelopment Agency.

Public comments are limited to three (3) minutes per person, per agenda item.

Written Comments
Comments must be emailed to [email protected] or mailed to the City Clerk at 200 Civic Center Way, El Cajon, CA 92020 and received by 4:00 pm the day prior to the City Council meeting for prompt distribution. Written public comments will be recorded in the public record and will
be provided to the City Council in advance
of the meeting for review.

Listening Devices and other Accomodations
ALDs are available from the City Clerk’s office. As required by the Americans with Disabilities Act (ADA), requests for reasonable accommodations to facilitate meeting participation will be provided, please contact the City Clerk’s office at least two (2) working days prior to the meeting at 619.441.1763.

For more information, please contact the City Clerk’s office at 619.441.1763.

Business hours: Monday-Thursday, 7:30 a.m. to 5:00 p.m., and alternating Fridays from 8:00 a.m. to 5:00 p.m.

SIGN UP TO RECEIVE

FUTURE AGENDAS
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CITY COUNCIL

HOUSING AUTHORITY AND

SUCCESSOR AGENCY TO THE EL CAJON

REDEVELOPMENT AGENCY
Council Chamber
200 Civic Center Way
El Cajon, CA 92020
Agenda
FEBRUARY 24, 2026, 3:00 p.m.

Bill Wells, Mayor Graham Mitchell, City Manager
Michelle Metschel, Deputy Mayor Vince DiMaggio, Assistant City Manager Steve Goble, Councilmember Marisol Thorn, Deputy City Manager Gary Kendrick, Councilmember Jennifer Lyon, City Attorney Phil Ortiz, Councilmember Angela Cortez, City Clerk
CALL TO ORDER: Mayor Bill Wells
ROLL CALL: City Clerk Angela Cortez

PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE
POSTINGS: The City Clerk posted Orders of Adjournment of the February 10, 2026, Meetings and the Agenda of the February 24, 2026, Meeting in accordance to State Law and City Council/Housing Authority/Successor Agency to the Redevelopment Agency Policy.

PRESENTATIONS:

Proclamation: National Engineers Week
Presentation: East County Homeless Task Force
AGENDA CHANGES:
~ Valley of opportunity
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CONSENT ITEMS:

Consent Items are routine matters enacted by one motion according to the RECOMMENDATION listed below. With the concurrence of the City Council, a Council Member or person in attendance may request discussion of a Consent Item at this time.

1. Minutes of the City Council/Housing Authority/Successor Agency to the El Cajon Redevelopment Agency Meeting

RECOMMENDATION:

That the City Council/Housing Authority/Successor Agency to the El Cajon Redevelopment Agency approves Minutes of the February 10, 2026, Meetings of the El Cajon City Council/Housing Authority/Successor Agency to the El Cajon Redevelopment Agency.

2. Warrants
RECOMMENDATION:

That the City Council approves payment of Warrants as submitted by the Finance Department.

3. Approval of Reading Ordinances by Title Only
RECOMMENDATION:

That the City Council approves the reading by title and waives the reading in full of all Ordinances on the Agenda.

4. Approval of Resolution to Authorize a Contract Amendment for Bid No. 001-24 - Street Light System Maintenance, Emergency Repairs, & Related Construction Services

RECOMMENDATION:

That the City Council adopts the next Resolution, in order, approving a contract amendment to amend the scope of work and increase the compensation amount for the multi-year Public Works Contract with Southwest Traffic Signal Service, Inc., in the not-to-exceed amount of $25,000 for the period of July 1, 2025 to June 30, 2026, and approving an additional $50,000 to fund the future remaining renewal terms ($25,000 for the third renewal term and $25,000 for the fourth renewal term) contingent upon budget approval and if exercised by the City in the future.

5. Appointment to Public Safety Facility Financing Oversight Committee

RECOMMENDATION:

That the City Council appoints Shaina K. Lee to the Public Safety Facility Financing Oversight Committee (PSFFOC) for a term to expire January 31, 2029.

PUBLIC COMMENT:

PUBLIC COMMENT:

At this time, any person may address a matter within the jurisdiction of the City Council/Housing Authority/Successor Agency to the El Cajon Redevelopment Agency that is not on the Agenda. Comments relating to items on today’s docket are to be taken at the time the item is heard. State law prohibits discussion or action on items not on the Agenda; however, Council, Authority and Agency Members may briefly respond to statements or questions. An item may be placed on a future Agenda.

WRITTEN COMMUNICATIONS:

PUBLIC HEARINGS:

6. Public Hearing to Consider Resolutions Approving CEQA Exemption, Planned Unit Development, and Tentative Subdivision Map for the Chase Common Interest Development

RECOMMENDATION:

That the City Council:

Opens the public hearing and receives testimony;1.

Closes the public hearing;2.

Moves to adopt the next Resolution, in order, APPROVING the CEQA Determination of Exemption;

3. Moves to adopt the next Resolution, in order, APPROVING Planned Unit Development No. 2025-0001, subject to conditions; and

4. Moves to adopt the next Resolution, in order, APPROVING Tentative Subdivision Map No. 2025-0014, subject to conditions.

5. ADMINISTRATIVE REPORTS:

7. Consideration of Resolutions to Approve the Second Amended and Restated Regional Wastewater Disposal Agreement (SARA) and Administrative Agreement No. 1

RECOMMENDATION:

That the City Council adopts the next Resolutions, in order, to:

Approve the Second Amended and Restated Wastewater Disposal Agreement; and

1. Approve Metropolitan Sewerage System Administrative Agreement No. 1 for unified management of industrial waste discharge pretreatment and enhanced source control.

2. 8. Parkway Plaza Update

RECOMMENDATION:

That the City Council receives the report.

9. Discussion of Speed Cushions Pilot Program Survey Results

RECOMMENDATION:

That the City Council receives and considers the results of the Speed Cushion Pilot Program and community outreach efforts, which did not achieve the required 67% affected household support threshold at any of the pilot locations, and provides direction regarding the continuation, modification, or discontinuation of the Speed Cushion Program.

10. City of El Cajon Homeless Point-in-Time Count Survey

RECOMMENDATION:

That the City Council receives the report.

11. Fiscal Year 2025-26 Mid-Year Report

RECOMMENDATION:

That the City Council:

Receives and accepts the Fiscal Year 2025-26 Mid-Year Report; and1.

Increases or modifies Fiscal Year 2025-26 appropriations, and related transfers, by $1,089,000 for additional needs as detailed in the report.

2. COMMISSION REPORTS:

ACTIVITIES REPORTS/COMMENTS OF MAYOR WELLS
SANDAG (San Diego Association of Governments) Board of Directors; SANDAG Public Safety Committee.

12. Council Activity Report

13. Update to City Council Assignments

RECOMMENDATION:

That the City Council approves City Council assignments (as identified in the report) to various boards and commissions representing El Cajon.

ACTIVITIES REPORTS/COMMENTS OF COUNCILMEMBERS:

14. COUNCILMEMBER STEVE GOBLE
MTS (Metropolitan Transit System Board); East County Advanced Water Purification JPA Board; Chamber of Commerce – Government Affairs Committee; SANDAG – Board of Directors – Alternate; SANDAG – Public Safety Committee – Alternate; SANDAG – San Diego Military Working Group.

15. COUNCILMEMBER GARY KENDRICK
METRO Commission/Wastewater JPA; Heartland Communications; Heartland Fire Training JPA.

16. DEPUTY MAYOR MICHELLE METSCHEL
Harry Griffen Park Joint Steering Committee; METRO Commission/Wastewater JPA – Alternate; Heartland Communications – Alternate; Heartland Fire Training JPA – Alternate.

17. COUNCILMEMBER PHIL ORTIZ
League of California Cities, San Diego Division; East County Economic Development Council; MTS (Metropolitan Transit System Board) – Alternate; East County Advanced Water Purification JPA Board – Alternate; Chamber of Commerce – Government Affairs Committee – Alternate.

JOINT COUNCILMEMBER REPORTS:

18. Request Staff Analysis and Draft Ordinance to Authorize up to Four Regulated Cannabis Dispensaries

RECOMMENDATION:

That the City Council directs staff to:

Prepare an analysis of the regulatory, zoning, fiscal, and public safety implications of authorizing up to four (4) cannabis retail dispensaries modeled after Santee’s approach;

1. Evaluate land use criteria including buffers from sensitive uses, security requirements, and compatibility with established land use designations;

2. Assess projected revenue scenarios from licensing fees and potential local cannabis taxes; and

3. Develop and return with a draft ordinance for City Council consideration.4.

GENERAL INFORMATION ITEMS FOR DISCUSSION:

ORDINANCES: FIRST READING

19. Introduction of Ordinance to Amend El Cajon Municipal Code Chapter 15.14 Regarding Flood Damage Prevention Regulations

RECOMMENDATION:

That the City Council:

Moves to introduce the next Ordinance, in order;1.

Directs the City Clerk to read the Ordinance by title only; and2.

Directs the second reading and adoption of the Ordinance to be placed on the March 10, 2026, City Council agenda.

3. ORDINANCES: SECOND READING AND ADOPTION

CLOSED SESSIONS:

20. Closed Session - Conference with Real Property Negotiators - Government Code section 54956.8:

Property:

Parkway Plaza
APN 482-270-56-00
APN 482-270-35-00
APN 482-270-42-00
Negotiating Parties:

Star-West Parkway Mall LP
Penney Property Sub Holdings LLC
Star-West Parkway Mall LP

City Negotiators:

City Manager
Assistant City Manager
City Attorney

Under Negotiation:

Price and terms of payment

21. Closed Session - Conference with Legal Counsel - Existing Litigation - pursuant to paragraph (1) of subdivision (d) of Government Code section 54956.9: Gregg vs City of El Cajon;
Superior Court of California, County of San Diego;
Case No. 25CU004443C

22. Closed Session - Conference with Legal Counsel - Anticipated Litigation - Initiation of litigation pursuant to paragraph (4) of subdivision (d) of section 54956.9: One (1) potential case

ADJOURNMENT: The Adjourned Regular Joint Meeting of the El Cajon City Council/El Cajon Housing Authority/Successor Agency to the El Cajon Redevelopment Agency held this 24th day of February 2026, is adjourned to Tuesday, March 10, 2026, at 3:00 p.m.

City Council
Agenda Report
Agenda Item 1.

DATE: February 24, 2026
TO: Honorable Mayor and City Councilmembers
FROM: Angela Cortez, City Clerk
SUBJECT: Minutes of the City Council/Housing Authority/Successor Agency to the El Cajon Redevelopment Agency Meeting
RECOMMENDATION:

That the City Council/Housing Authority/Successor Agency to the El Cajon Redevelopment Agency approves Minutes of the February 10, 2026, Meetings of the El Cajon City Council/Housing Authority/Successor Agency to the El Cajon Redevelopment Agency.

Attachments
02-10-26DRAFTminutes - Special Joint Meeting - 230PM
02-10-26DRAFTminutes - 3 PM

Special Joint Meeting: El Cajon City Council/Housing Authority/ February 10, 2026 Successor Agency to the Redevelopment Agency - 26 - 2:30 p.m.

JOINT SPECIAL MEETING OF THE

EL CAJON CITY COUNCIL/HOUSING

AUTHORITY/SUCCESSOR AGENCY

TO THE EL CAJON

REDEVELOPMENT AGENCY

MINUTES

CITY OF EL CAJON

EL CAJON, CALIFORNIA

February 10, 2026

A Joint Special Meeting of the El Cajon City Council/Housing Authority/ Successor Agency to the El Cajon Redevelopment Agency, held Tuesday, February 10, 2026, was called to order by Mayor/Chair Bill Wells at 2:32 p.m., in the Council Chambers, 200 Civic Center Way, El Cajon, California.

R O L L C A L L
Council/Agencymembers present: Kendrick, and Ortiz
Council/Agencymembers absent: Goble
Deputy Mayor/Vice Chair present: Metschel
Mayor/Chair present: Wells
Other Officers present: Mitchell, City Manager/Executive Director DiMaggio, Assistant City Manager
Thorn, Deputy City Manager
Lyon, City Attorney/General Counsel
Cortez, City Clerk/Secretary

PLEDGE OF ALLEGIANCE TO FLAG led by Mayor Wells and MOMENT OF SILENCE.

PUBLIC COMMENT: None

The Valley of Opportunity
~ ~ ~
C'o V '-ci ~PorateO

Special Joint Meeting: El Cajon City Council/Housing Authority/ February 10, 2026 Successor Agency to the Redevelopment Agency - 27 - 2:30 p.m.

CLOSED SESSIONS:

RECOMMENDATION: That the City Council/Housing Authority/Successor Agency to the El Cajon Redevelopment Agency adjourns to Closed Session as follows:

1. Closed Session - Conference with Legal Counsel - Existing Litigation - pursuant to paragraph (1) of subdivision (d) of Government Code section 54956.9:

Christopher Berg vs City of El Cajon, et al.;
Superior Court of California, County of San Diego;
Case No. 25CU067074C

MOTION BY WELLS, SECOND BY METSCHEL, to ADJOURN to Closed Session at 2:33 p.m.

MOTION CARRIED BY UNANIMOUS VOTE
OF THOSE PRESENT (GOBLE – Absent).

RECONVENED to Open Session at 2:56 p.m.

City Attorney Lyon reported the following actions:
• No reportable action taken.

Adjournment: The Joint Special Meeting of the El Cajon City Council/El Cajon Housing Authority/Successor Agency to the El Cajon Redevelopment Agency held this 10th day of , 2026 was adjourned at 2:56 p.m.

__________________________
ANGELA L. CORTEZ, CMC
City Clerk/Secretary

Joint Meeting: El Cajon City Council/Housing Authority/ February 10, 2026 Successor Agency to the Redevelopment Agency -28- 3:00 p.m.

JOINT MEETING OF THE

EL CAJON CITY COUNCIL/HOUSING

AUTHORITY/SUCCESSOR AGENCY

TO THE EL CAJON

REDEVELOPMENT AGENCY

MINUTES

CITY OF EL CAJON

EL CAJON, CALIFORNIA

February 10, 2026

A Regular Joint Meeting of the El Cajon City Council/Housing Authority/Successor Agency to the El Cajon Redevelopment Agency, held Tuesday, February 10, 2026, was called to order by Mayor/Chair Bill Wells at 3:01 p.m., in the Council Chambers, 200 Civic Center Way, El Cajon, California.

R O L L C A L L
Council/Agencymembers present: Goble, Kendrick, and Ortiz Council/Agencymembers absent: None
Deputy Mayor/Vice Chair present: Metschel
Mayor/Chair present: Wells
Other Officers present: Mitchell, City Manager/Executive Director DiMaggio, Assistant City Manager
Thorn, Deputy City Manager
Lyon, City Attorney/General Counsel
Cortez, City Clerk/Secretary

PLEDGE OF ALLEGIANCE TO THE FLAG led by Mayor Wells and MOMENT OF SILENCE.

POSTINGS: The City Clerk posted Orders of Adjournment of the January 27 , 2026, meetings and the Agenda of the February 10, 2026, meetings in accordance with State Law and El Cajon City Council/Housing Authority/Successor Agency to the El Cajon Redevelopment Agency Policy.

The Valley of Opportunity
~ ~ ~
C'o V '-ci ~PorateO

Joint Meeting: El Cajon City Council/Housing Authority/ February 10, 2026 Successor Agency to the Redevelopment Agency -29- 3:00 p.m.

PRESENTATIONS: None

AGENDA CHANGES:

City Manager Mitchell recommended pulling Activities Reports/Comments of Mayor Wells, Item 11 – Update to City Council Assignments , and shared that it will be presented at a future meeting.

MOTION BY WELLS, SECOND BY GOBLE, to PULL Activities
Reports/Comments of Mayor Wells, Item 11 – Update to City Council Assignments.

MOTION CARRIED BY UNANIMOUS VOTE.

CONSENT ITEMS: (1 – 6)

MOTION BY WELLS, SECOND BY METSCHEL, to APPROVE Consent Items 1 to 6.

MOTION CARRIED BY UNANIMOUS VOTE.

1. Minutes of El Cajon City Council/ Housing Authority/Successor Agency to the El Cajon Redevelopment Agency Meetings

Approve Minutes of the January 27 , 2026, Meetin gs of the El Cajon City Council/Housing Authority/Successor Agency to the El Cajon Redevelopment Agency.

2. Warrants

Approve payment of Warrants as submitted by the Finance Department.

3. Approval of Reading Ordinances by Title Only

Approve the reading by title and waive s the reading in full of all Ordinances on the Agenda.

4. Approval of Resolution to Amend City Council Policy A-5 "Claims against the City for Damage to Person or Property; Workers’ Compensation Claims"

Adopt Resolution No. 012-26, to amend City Council Policy A-5: Claims against the City for Damage to Person or Property; Workers’ Compensation Claims, to increase the settlement authority for the City Manager up to $50,000.

Joint Meeting: El Cajon City Council/Housing Authority/ February 10, 2026 Successor Agency to the Redevelopment Agency -30- 3:00 p.m.

CONSENT ITEMS: (Continued)

5. Appointment to Public Safety Facility Financing Oversight Committee

Appoint Ivan Cruz to the Public Safety Facility Financing Oversight Committee (PSFFOC) for a term to expire January 31, 2029.

6. Monthly Treasurer’s Report for the period ended December 31, 2025

Receive the Monthly Treasurer’s Report for the period ended December 31, 2025.

PUBLIC COMMENT:

Erik N. Weber spoke in support of repeal ing Resolution 015-25, regarding immigration, and expressed concern regarding disability discrimination due to Immigration and Customs Enforcement (ICE) operations.

Noel Becchetti welcomed Councilmember Kendrick to the Democratic party and prayed for the City and its Elected Officials.

Ray Justus expressed concern about speeding and parking on Chase Avenue.

In response to a question from Mayor Wells, City Manager Mitchell stated that the City is looking into engineering strategies to slow the traffic on Chase Avenue and that the City would also analyze the parking situation for the Chase Avenue area.

Coleen Geraghty congratulated Councilmember Kendrick on becoming a Democrat and spoke in support of repealing Resolution 015-25, regarding immigration.

Ryn Corbeil commended Councilmember Kendrick for changing his political party and spoke about the immigration crisis.

Steph Cauchon asked the City Council to continue to support social services.

Andrew Lower expressed concern about bike safety.

WRITTEN COMMUNICATIONS: None

PUBLIC HEARINGS: None

Joint Meeting: El Cajon City Council/Housing Authority/ February 10, 2026 Successor Agency to the Redevelopment Agency -31- 3:00 p.m.

ADMINISTRATIVE REPORTS:

7. 405 E. Lexington Ave Tenant Improvements — Project Update

RECOMMENDATION:

That the City Council:

1. Receives the 405 E. Lexington Avenue Tenant Improvements (263878PWCP) project update; and

2. A uthorizes staff to continue the design phase of the 405 E. Lexington Avenue Tenant Improvements project.

DISCUSSION

Principal Civil Engineer , Senan Kachi , and City Manager Mitchell provided detailed information of the Item.

No public comment was received for the Item.

Discussion ensued amongst City Council and Staff concerning the following:
• Deadline to spend American Rescue Plan Act (ARPA) funds; • Forfeiting ARPA funds;
• Possible use of general fund reserves; and
• Bidding for individual projects.

MOTION BY ORTIZ, SECOND BY GOBLE, to RECEIVE the 405 E.

Lexington Avenue Tenant Improvements (263878PWCP) project update; and Authorize staff to continue the design phase of the 405 E. Lexington Avenue Tenant Improvements project.

MOTION CARRIED BY 4 -1 VOTE
(METSCHEL – No).

8. United States Semiquincentennial

RECOMMENDATION:

That the City Council provides direction on potential special activities to commemorate the 250th anniversary of the United States, and if so, authorizes a specified budget amount to support related events, partnerships, and programming.

DISCUSSION

City Manager Mitchell provided detailed information of the Item.

Coleen Geraghty suggested inviting high school marching bands to participate.

Joint Meeting: El Cajon City Council/Housing Authority/ February 10, 2026 Successor Agency to the Redevelopment Agency -32- 3:00 p.m.

ADMINISTRATIVE REPORTS: (Item 8 – Continued)

Ryn Corbeil expressed concern about the logistics and asked if all community members would feel safe participating due to recent ICE operations.

Jeff Mansour supported incorporating local businesses and indicated local business es would be willing to donate funds for the event.

Discussion ensued amongst City Council and Staff concerning the following:
• America On Main Street has been cut from the budget;
• Semiquincentennial specific marketing;
• Mural;
• Budget;
• Banners and bunting;
• Incorporating local businesses;
• Block parties;
• Sponsorships;
• Firework concerns;
• Cross promoting with neighboring communities;
• America’s Potluck; and
• High school band availability.

No Motion required for the Item.

9. Permanent Local Housing Allocation Program City Council Subcommittee

RECOMMENDATION:

That the City Council considers forming an ad hoc City Council subcommittee to review the 2026 Permanent Local Housing Allocation Program applications and appoints two members to that subcommittee.

DISCUSSION

City Manager Mitchell provided detailed information of the Item.

No public comment was received for the Item.

Deputy Mayor Metschel and Councilmember Ortiz volunteered to be on the Permanent Local Housing Allocation (PLHA) ad hoc City Council subcommittee.

COMMISSION REPORTS: None

Joint Meeting: El Cajon City Council/Housing Authority/ February 10, 2026 Successor Agency to the Redevelopment Agency -33- 3:00 p.m.

ACTIVITIES REPORTS/COMMENTS OF MAYOR WELLS:

SANDAG (San Diego Association of Governments) Board of Directors ; SANDAG – Public Safety Committee.

10. Council Activities Report/Comments

Report as submitted.

Item 11 from pulled from the agenda during Agenda Changes.

11. Update to City Council Assignments

That the City Council approves City Council assignments (as identified in the report) to various boards and commissions representing El Cajon.

ACTIVITIES REPORTS OF COUNCILMEMBERS:

12. COUNCILMEMBER STEVE GOBLE
MTS (Metropolitan Transit System Board); East County Advanced Water Purification Joint Powers Authority Board; Chamber of Commerce – Government Affairs Committee; SANDAG – Board of Directors – Alternate; SANDAG – Public Safety Committee – Alternate; SANDAG – San Diego Military Working Group.

Council Activities Report/Comments.

Report as submitted.

13. COUNCILMEMBER GARY KENDRICK
METRO Commission/Wastewater JPA; Heartland Communications; Heartland Fire Training JPA.

Council Activities Report/Comments.

Report as submitted.

14. DEPUTY MAYOR MICHELLE METSCHEL
Harry Griffen Park Joint Steering Committee; Heartland Communications – Alternate; Heartland Fire Training JPA – Alternate; METRO Commission/Wastewater JPA – Alternate.

Council Activities Report/Comments.

Report as submitted.

Joint Meeting: El Cajon City Council/Housing Authority/ February 10, 2026 Successor Agency to the Redevelopment Agency -34- 3:00 p.m.

ACTIVITIES REPORTS OF COUNCILMEMBERS: (Continued)

15. COUNCILMEMBER PHIL ORTIZ
League of California Cities, San Diego Division; East County Economic Development Council; MTS (Metropolitan Transit System Board) – Alternate; East County Advanced Water Purification Joint Powers Authority Board – Alternate; Chamber of Commerce – Government Affairs Committee – Alternate.

Council Activities Report/Comments.

Report as submitted.

JOINT COUNCILMEMBER REPORTS: None

GENERAL INFORMATION ITEMS FOR DISCUSSION: None

ORDINANCES: FIRST READING

16. Introduction of Ordinance to Amend El Cajon Municipal Code Chapter 8.33; Licensure of Tobacco Retailers

RECOMMENDATION:

That the City Council:

1. Moves to introduce the next Ordinance, in order;

2. Directs the City Clerk to read the Ordinance by title only; and

3. Directs the second reading and adoption of the Ordinance to be placed on the February 24, 2026, City Council agenda.

DISCUSSION

Deputy Director of Development Services, Noah Alvey, provided detailed information of the Item.

Discussion ensued amongst City Council and Staff concerning the following:
• Enforcement;
• Penalties of neighboring communities;
• Retention of business’ camera footage;
• Age verification devices;
• Frequency of stings;
• Use and effectiveness of ID card readers;
• Percentage of businesses which have sold tobacco to minors; • Business’ use of internal decoys to test employees; and • Effectiveness of current penalties.

Joint Meeting: El Cajon City Council/Housing Authority/ February 10, 2026 Successor Agency to the Redevelopment Agency -35- 3:00 p.m.

ORDINANCES: FIRST READING (Item 16 – Continued)

Mayor Wells announced that due to the number of speakers Public Comments would be limited to 2 minutes.

Chuck Kaye spoke about making a decision based on the data and what is appropriate.

Jeff Mansour spoke about being reasonable when mistakes happen , other recent regulations on tobacco sales, and in opposition of how the decoy program operates.

City Manager Mitchell clarified that when a business appeals a violation the case is heard before an administrative judge and the City has only lost one hearing. Mr. Mitchell also recommended bringing an item for CASA’s decoy operations back at a future meeting if Council would like to discuss that further because Item No. 16 is only regarding the proposed Ordinance.

Hani Toma, owner of Super Star gas station, spoke about his experience of appealing a previous violation and spoke in opposition of CASA’s decoy operations.

Remon Mansour spoke in opposition of staff’s recommendation for the first violation and stated that the current penalties are tough but fair.

Zack Goro spoke in opposition of the proposed increased penalties.

Riadh Shamoon spoke in opposition of the proposed Ordinance.

Yaser Shammas, representing Tykes Liquor, spoke about limitations of ID card readers due to damaged cards or unsupported types of ID cards.

Steve Mattia spoke about El Cajon’s penalties being stricter than surrounding communities, suggesting keeping data on the businesses that are successful during decoy stings, and recommended providing businesses with educational information.

Allen Toma spoke about the current penalties being strict but fair and spoke in opposition of increasing the penalties.

Joe Mansour stated the current penalties are fair , that people do make mistakes, and proposed that the employee should be held accountable, not the business.

Donna Colbert, representing CASA, spoke about CASA’s integrity, the penalties in the County of San Diego and City of La Mesa, and the ease of checking customer’s ID based on the orientation of the ID card.

In response to a question from Councilmember Kendrick, Joe Mansour explained the difficulties of storing camera footage long term.

Joint Meeting: El Cajon City Council/Housing Authority/ February 10, 2026 Successor Agency to the Redevelopment Agency -36- 3:00 p.m.

ORDINANCES: FIRST READING (Item 16 – Continued)

Arkan Somo, representing NMA, stated that no store owner would intentionally break the tobacco regulations and risk the penalties, and questioned the message that would be sent to local business owners if the proposed Ordinance is adopted.

Noel B ecchetti spoke about honor -shaming cultures and the long-term impacts of increased penalties on local business owners.

MOTION BY GOBLE, SECOND BY ORTIZ, to UPHOLD the existing Ordinance.

MOTION CARRIED BY 4 -1 VOTE
(KENDRICK – No).

Councilmember Kendrick left the Chamber at 5:09 p.m.

ORDINANCES: SECOND READING AND ADOPTION

17. Second Reading and Adoption of Ordinances to Amend the El Cajon Municipal Code for Specific Plan No. 182 and Title 17

RECOMMENDATION:

Staff requests that:

1. Mayor Wells request the City Clerk to recite the titles of the Ordinances; and

2. The City Council conduct the second reading by title only, waiving further reading, and adopt the two Ordinances as follows:

• An Ordinance Approving an Amendment to Specific Plan No. 182 for Lighting and Events on City Property and in Rights of Way
• An Ordinance Approving an Amendment to Title 17 of the El Cajon Municipal Code (Zoning Code) for Housing Related Updates, Changes in State Law, and Other Non-Substantive Changes to Improve Clarity and Consistency

CALIFORNIA ENVIRONMENTAL QUALITY ACT:

The proposed Zoning Code and Specific Plan No. 182 Amendments are exempt from the provisions of the California Environmental Quality Act (“CEQA”) according to the common sense exemption (CEQA Guidelines, section 15061(b)(3)). The common sense exemption applies where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. The proposed amendment does not result in any development or changes to the physical environment and does not raise this project to a level of significance that warrants CEQA analysis.

Joint Meeting: El Cajon City Council/Housing Authority/ February 10, 2026 Successor Agency to the Redevelopment Agency -37- 3:00 p.m.

ORDINANCES: SECOND READING AND ADOPTION (Item 17 – Continued)

DISCUSSION

Deputy Director of Development Services, Noah Alvey, provided detailed information of the Item.

No public comment was received for the Item.

The City Clerk recited the titles of the Ordinances for a second reading.

AN ORDINANCE APPROVING AN AMENDMENT TO SPECIFIC PLAN
NO. 182 FOR LIGHTING AND EVENTS ON CITY PROPERTY AND IN

RIGHTS OF WAY

AN ORDINANCE APPROVING AN AMENDMENT TO TITLE 17 OF

THE EL CAJON MUNICIPAL CODE (ZONING CODE) FOR HOUSING

RELATED UPDATES, CHANGES IN STATE LAW, AND OTHER

NONSUBSTANTIVE

CHANGES TO IMPROVE CLARITY AND

CONSISTENCY

MOTION BY WELLS, SECOND BY GOBLE, to ADOPT Ordinance No. 5172, APPROVING an amendment to Specific Plan No. 182 for lighting and events on City property and in rights of wa y; and to ADOPT Ordinance No. 5173, APPROVING an amendment to Title 17 of the El Cajon Municipal Code ( Zoning Code) for housing related updates, changes in state law, and other nonsubstantive changes to improve clarity and consistency.

MOTION CARRIED BY 4 -1 VOTE
(KENDRICK – Absent).

CLOSED SESSIONS: None

Adjournment: Mayor Wells adjourned the Regular Joint Meeting of the El Cajon City Council/ Housing Authority/Successor Agency to the El Cajon Redevelopment Agency held this 10th day of February, 2026, at 5:11 p.m., to Tuesday, February 24, 2026, at 3:00 p.m.

________________________
ANGELA L. CORTEZ, CMC
City Clerk/Secretary
City Council
Agenda Report
Agenda Item 4.

DATE: February 24, 2026
TO: Honorable Mayor and City Councilmembers
FROM: Mara Romano, Purchasing Agent
SUBJECT: Approval of Resolution to Authorize a Contract Amendment for Bid No. 001-24 - Street Light System Maintenance, Emergency Repairs, & Related Construction Services
RECOMMENDATION:

That the City Council adopts the next Resolution, in order, approving a contract amendment to amend the scope of work and increase the compensation amount for the multi-year Public Works Contract with Southwest Traffic Signal Service, Inc., in the not-to-exceed amount of $25,000 for the period of July 1, 2025 to June 30, 2026, and approving an additional $50,000 to fund the future remaining renewal terms ($25,000 for the third renewal term and $25,000 for the fourth renewal term) contingent upon budget approval and if exercised by the City in the future.

BACKGROUND:

The City of El Cajon is the lead agency for a multi-city contract that provides street light system maintenance, emergency repair, and related construction services for the Cities of El Cajon, La Mesa, Lemon Grove, and Santee. The operation of street lighting systems is dependent on routine maintenance, which is vital to the safety and movement of people and goods throughout the City.

On May 9, 2023, the City Council authorized the award of the Street Light System Maintenance, Emergency Repairs, and Related Construction Services bid in the not-to-exceed amount of $344,697 ($152,510 El Cajon’s portion of the award) for the initial one-year term and $690,204.03 for subsequent four-year renewal costs.

On January 29, 2025, the contract was amended to add light repairs and maintenance services for the Parks & Recreation Department in the not-to-exceed amount of $25,000, in accordance with City Council Policy B-4, which grants the City Manager authority to execute a change order in an amount not to exceed 25% of the original contract value.

The requested increase for the current term and potential third- and fourth-year renewal terms is due to increased park and ballfield light maintenance and emergency repairs. Due to the condition of aging infrastructure and recurring incidents of vandalism, it is anticipated that these issues will persist throughout the duration of the contract. The additional funds will ensure timely replacement of damaged or broken park lighting in order to maintain safe conditions for park users.
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CALIFORNIA ENVIRONMENTAL QUALITY ACT:

The proposed Traffic Signal System Maintenance, Emergency Repairs, and Related Construction Services is exempt from the California Environmental Quality Act (CEQA) pursuant to section 15301(c) of the State CEQA Guidelines. This exemption applies to projects involving repair and maintenance of existing public or private structures, facilities, and mechanical equipment involving negligible or no expansion of use, including public streets and highways.

FISCAL IMPACT:

Approval of the $25,000 increase will supplement the current term, for the period of July 1, 2025 to June 30, 2026, for a total not-to-exceed amount of $214,162.85. Funds for the increase are available in Fiscal Year 2025-26 Annual Budget: Parks Operations - Repairs & Maintenance (101630). The remaining balance will be funded by Fiscal Year 2025-26 Annual Budget: Public Works – Traffic Engineering (101520).

Approval of the additional $50,000 will fund the remaining renewal terms ($25,000 for third renewal term and $25,000 for fourth renewal term), contingent upon budget approval and if exercised by the City in the future. Funds for the renewal term increase are available in the Fiscal Year 2025-26 Budget: Parks Operations - Repairs & Maintenance (101630). The four-year renewal option cost is estimated to total $740,204.03.

Prepared By: Mara Romano, Purchasing Agent
Reviewed By: Yazmin Arellano, Director of Development Services Approved By: Graham Mitchell, City Manager
Attachments
Resolution

RESOLUTION NO. ___-26

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CAJON

AUTHORIZING A CONTRACT AMENDMENT TO A CONTRACT FOR STREET LIGHT

SYSTEM MAINTENANCE, EMERGENCY REPAIRS, AND RELATED

CONSTRUCTION SERVICES PROJECT AND INCREASING THE BUDGET FOR

CURRENT TERM AND POTENTIAL REMAINING RENEWAL TERMS
(Bid No. 001-24)
WHEREAS, on May 9, 2023, the City of El Cajon awarded a multi-year public works contract (the "Contract") to Southwest Traffic Signal Service, Inc. for the Street Light System Maintenance, Emergency Repairs, and Related Construction Services Project (the "Project"); and
WHEREAS, additional funding is required to address unforeseen repairs and maintenance of park and ballfield lighting and to fund the remaining renewal terms of the Contract; and
WHEREAS, the Project is exempt from the California Environmental Quality Act (CEQA) pursuant to section 15301(c) of the State CEQA Guidelines, which applies to the repair and maintenance of existing public facilities involving negligible or no expansion of use.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EL CAJON AS FOLLOWS:

1. The above recita ls a re true and corre ct
and a re the finding s of the City
Council.

2. The City Council finds that the Project is exempt from the California Environmental Quality Act (CEQA) pursuant to section 15301(c) of the State CEQA Guidelines.

3. The City Council approves an amendment to the Contract to amend the scope of work and increase the compensation amount by $25,000 for the period of July 1, 2025 to June 30, 2026.

4. The City Council further approves an additional $50,000 to fund the future remaining renewal terms ($25,000 for the third renewal term and $25,000 for the fourth renewal term), contingent upon budget approval and if exercised by the City in the future.

5. The City Manager, or designee, and City Clerk are authorized and directed to execute an amendment and any related documents necessary to implement this Resolution, on behalf of the City of El Cajon.

City Council
Agenda Report
Agenda Item 5.

DATE: February 24, 2026
TO: Honorable Mayor and City Councilmembers
FROM: Graham Mitchell, City Manager
SUBJECT: Appointment to Public Safety Facility Financing Oversight Committee RECOMMENDATION:

That the City Council appoints Shaina K. Lee to the Public Safety Facility Financing Oversight Committee (PSFFOC) for a term to expire January 31, 2029.

BACKGROUND:

El Cajon resident, Shaina K. Lee, applied to serve on the Public Safety Facility Financing Oversight Committee (PSFFOC). The City currently has vacancies on the PSFFOC. Staff has met with Ms. Lee and recommends Ms. Lee's appointment to the body. Her application is attached to this report.

CALIFORNIA ENVIRONMENTAL QUALITY ACT:

This action is not subject to the California Environmental Quality Act ("CEQA") pursuant to State CEQA Guidelines section 15378(b)(5), because it is an organizational activity of government that will not result in direct or indirect physical changes in the environment.

FISCAL IMPACT:

None.

Prepared By: Angela Cortez, City Clerk
Reviewed By: N/A
Approved By: Graham Mitchell, City Manager
Attachments
PSFFOC - Shaina Lee
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General Information:

Term of Office & Position Type: The term of office & position type are to be determined.

Selection Process: The City Council will consider applications received and interviews will be scheduled accordingly.

Form 700: Public Safety Facility Financing Oversight Committee members are required to file a Statement of Economic Interest (Form 700) with the City Clerk for the City of El Cajon.

Applications are accepted on an ongoing basis. Your application will remain on file until an open seat/position is available, at which point you will be contacted with information regarding the interview process.

PUBLIC SAFETY FACILITY

FINANCING OVERSIGHT

COMMITTEE APPLICATION

CITY OF EL CAJON
Please submit the signed application by e-mail, mail, or in person.

Drop off or mail to: City Clerk’s Office, 200 Civic Center Way, El Cajon, CA 92020
Email: [email protected]
NOTE: Once a public service application is filed with the City, it becomes a public record.

General Information:

Term of Office & Position Type:yp The term of office & position type are to be determined.

Selection Process: The City Council will consider applications received and interviews will be scheduled accordingly.

Form 700: Public Safety Facility Financing Oversight Committee members are required to file a Statement of Economic Interest (Form 700) with the City Clerk for the City of El Cajon.

Applications are accepted on an ongoing basis. Your application will remain on file until an open seat/position is available, at which point you will be contacted with information regarding the interview process.

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11/14/2025
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facilities (e.g. hospitals, clinics, and staff e.g. physicians and laboratory personnel) to coordinate reporting to the Health and Human Services Agency and voluntary partner
notification. Visits hospitals and military institutions to secure cooperation in surveillance processes, reporting and epidemiology. Obtains demographic
Shaina K Lee
2/5/2026
County of San Diego and County of Los Angeles Coronavirus Contact Tracing Supervisor 12/01/2020 07/31/2021
P.A.T.H. San Diego Case manager II
05/08/2018 02/14/2020
City Council
Agenda Report
Agenda Item 6.

DATE: February 24, 2026
TO: Honorable Mayor and City Councilmembers
FROM: Noah Alvey, Deputy Director of Development Services SUBJECT: Public Hearing to Consider Resolutions Approving CEQA Exemption, Planned Unit Development, and Tentative Subdivision Map for the Chase Common Interest Development
RECOMMENDATION:

That the City Council:

Opens the public hearing and receives testimony;1.

Closes the public hearing;2.

Moves to adopt the next Resolution, in order, APPROVING the CEQA Determination of Exemption;

3. Moves to adopt the next Resolution, in order, APPROVING Planned Unit Development No. 2025-0001, subject to conditions; and

4. Moves to adopt the next Resolution, in order, APPROVING Tentative Subdivision Map No. 2025-0014, subject to conditions.

5. PROJECT DESCRIPTION:

This project proposes a planned unit development (“PUD”) to convert an existing four-unit residential development to a common interest development. The proposal includes a tentative subdivision map (“TSM”) to establish four residential sub-lots and a fifth common lot (“Lot A”) for utilities and driveway access. Proposed residential lot sizes range from 4,031 to 7,720 square feet.

BACKGROUND:

General Plan: Low Density Residential (LR)
Specific Plan: None
Zone: Residential, Multi-family, 6,000 sq. ft. (RM-6000) Other City Plan(s): Conditional Use Permit No. 523
Regional and State Plan(s): None
Notable State Law(s): Subdivision Map Act; Assembly Bill 2097 Applicant: Dan Caruso; (352) 789-1010
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Project Site & Constraints
The project site is rectangular, measuring approximately 94 feet wide by 280 feet deep, and contains a total area of 26,613 square feet (approximately 0.61 acres). The site is located on the south side of Chase Avenue between Lemon Avenue and Emerald Avenue. The residences on the site are addressed as 653, 657, 661, and 669 West Chase Avenue.

The site is developed with three detached single-family residences, two of which include an attached two-car garage (Units 661 & 669 West Chase Avenue). The fourth unit, addressed as 657 West Chase Avenue, is an accessory dwelling unit (“ADU”) that resulted from the conversion of a detached garage and received final occupancy in 2022. The project proposes to upgrade the ADU to primary dwelling unit standards prior to the conversion to common interest.

Each unit contains a side or rear-yard exceeding 1,000 square feet. The site is served by a 20-foot-wide private driveway. Project plans include areas for parking in addition to the existing garages.

The residence at 653 West Chase Avenue has a legal nonconforming front yard setback due to multiple right-of-way dedications associated with the widening of Chase Avenue. The structure is located approximately four feet from the front property line. In addition, the site contains multiple unpermitted covered patios and carports; these structures are proposed for removal in conjunction with the conversion to common interest ownership, as reflected in the project plans.

Surrounding Context
The property surrounding the project site is developed and zoned as follows:

Direction Zones Land Uses
North RS-6 Single-family Residences
South RS-6 Single-family Residences
East RM-6000 Single-family Condominium Conversion
West RM-6000 Single-family Residences
General Plan
The subject property is designated Low Density Residential ("LR") on the General Plan Land Use Map. The LR designation is intended for a maximum residential density of up to 10 dwelling units per acre.

Goal 5 of the General Plan calls for a broad range of housing types to meet the housing needs of various groups and includes objectives related to improving residential neighborhoods, increasing opportunities for homeownership, and removing governmental constraints on housing development (Objectives 5-1, 5-3, and 5-4). The 2021–2029 Housing Element further reinforces these goals through Objective 1, which focuses on accommodating residential units at all income levels, and Objective 2 and implementing Policy 2-3, which support the improvement of residential neighborhoods.

Municipal Code/Zoning Code
The subject property is within the RM-6000 (Residential, Multi-family, 6,000 square foot) zone, which is consistent with the LR General Plan designation. The RM-6000 zone generally permits one multifamily dwelling unit per 6,000 square feet of lot area and requires residential units to be detached.
be detached.

Standards for the conversion of an existing residential development to a common interest development are set forth in El Cajon Municipal Code (“ECMC”) Chapter 17.60 for planned unit developments. Specific development standards apply to common interest conversions and include parking, recreational open space, building construction requirements, utility systems, landscaping, and trash collection.

Common interest conversion projects are also required to provide a Physical Elements Report (“PER”). The PER documents the status of the structures (roofing, mechanical, foundation, plumbing, etc.) and recommends necessary repairs prior to the finalization of the conversion. In addition, ECMC Chapter 17.60 requires the formation of a Homeowner’s Association (“HOA”) and the recordation of Covenants, Conditions and Restrictions (“CC&Rs”).

Subdivision Ordinance/ Subdivision Map Act
The project includes a tentative subdivision map to create real property. TSM No. 2025-0014 proposes a five-lot common interest subdivision consisting of four residential sub-lots and one common lot for shared driveway access and utilities. Authority and procedures for processing a tentative subdivision map are provided in the California Subdivision Map Act and Title 16 (Subdivision Ordinance) of the El Cajon Municipal Code.

DISCUSSION
Compliance with Development Standards
The existing development complies with RM-6000 setback requirements, which include a 20-foot front yard and five-foot interior side yards. Residential units also observe the minimum 12 feet of required separation between units. Further, existing structures comply with lot coverage requirements; up to 40 percent of the lot can be covered by structures in the RM-6000 zone and existing lot coverage is approximately 33 to 37 percent. Existing structures also comply with the maximum height limit of 25 feet.

Future additions, such as enclosed garages or patio covers, may be constructed subject to building permit approval. Project plans illustrate the footprint of two detached garages for Units 653 and 657. Although these garages are not required as part of the conversion, proposed conditions of approval require that any future accessory structures comply with applicable design standards.

The project is exempt from minimum parking requirements pursuant to California Assembly Bill No. 2097. Nonetheless, the project provides for a parking configuration consistent with RM-6000 zone standards. As discussed, two of the existing units include a two-car garage and provide surface parking in the private driveway area. The remaining two lots have sufficient area to accommodate a two-car garage and provide surface parking for multiple vehicles. The project also proposes widening the private driveway to 22-feet, which meets minimum requirements for developments with four or more units in the RM-6000 zone.

The project proposes to close the easternmost driveway entry and proposed conditions of approval require that it be replaced with curb, gutter and sidewalk pursuant to San Diego Regional Standards. Proposed conditions of approval also require that the remaining driveway, which serves the common access, be updated to Regional Standards.

Each unit is served by a private side or rear yard exceeding the minimum requirement of 100 square feet (with minimum dimensions of 10 feet by 10 feet). Private yard areas range from approximately 1,200 square feet to over 3,000 square feet.

Prior to the sale of a residential unit, separate utility systems for gas and electricity are required for each unit. Project plans reflect separate underground utilities. Although not required, project plans reflect the installation of three additional water meters for separate service to each unit.

All units will share a common sewer lateral with cleanouts provided at the front property line of each residential lot. The HOA will be responsible for maintenance of the common driveway and utilities within the common lot.

Proposed conditions of approval require the rehabilitation of landscaping in the exterior yard, in the parkway along Chase Avenue, and along the common driveway. Landscaping shall be consistent with the content and irrigation requirements of the Water Efficient Landscape Ordinance in ECMC Chapter 17.195 and a landscape documentation package will be required if the total rehabilitated landscape area exceeds 2,500 square feet, consistent with ECMC section

17.195.030(A)(2).

No changes to trash service are proposed. However, conditions of approval require that project plans reflect the relocation of trash bin storage to the interior side or rear yard of each residential lot.

Map Design
The proposed lot configuration bifurcates the site into four sizable residential sub-lots with adjacency to the common Lot A. Lot A runs from the northerly front yard property line (adjacent to Chase Avenue) to the south approximately 180 feet and is approximately 27 feet wide. The proposed residential lot areas are as follows: Lot 1 is 4,031 square feet, Lot 2 is 4,719 square feet, Lot 3 is 5,155 square feet, and Lot 4 is 7,720 square feet. Proposed parcel lines preserve as much area as possible for each residential lot while accommodating the existing configuration of the units and development standards. Lot 4 is larger due to the location of the southernmost unit.

Physical Elements Report (PER)
PARTNER Engineering and Science, Inc. conducted an inspection in July 2024 and prepared the PER dated July 31, 2024. The PER concludes that the units are in good overall condition, with several recommended repairs and replacements. Some of these recommendations relate to accessory structures proposed for removal.

Immediate repair and replacement items are recommended as follows:

Replacement of the patio slab at unit 653
Repair of wood rot on the patio cover attached to unit 661 Rehabilitation of landscaped areas
Replacement of a window with failed seals at unit 669
Updating bedroom windows to meet current egress requirements Installation of smoke detectors at required locations
Replacement of water heaters in Units 653 & 669
Replacement of Zinsco electrical panels

• • • • • • • •

The PER notes that HVAC equipment is in good condition and that only routine maintenance is anticipated over the next five to ten years. Landscaping was observed to be in fair to poor condition, and its rehabilitation is recommended in the PER and required by the proposed conditions of approval. Although the water heaters at Units 653 and 669 were operational, replacement was recommended due to age and an anticipated useful life of approximately 15 years.

No deficiencies were observed with respect to foundations, walls, or roofs. Roofing materials are anticipated to have a remaining useful life of approximately 20 years with regular maintenance.

Tenant Notification
California Government Code section 66427.1 and ECMC section 17.60.350 require the applicant to provide written notice of intent to convert to all existing tenants at least 60 days prior to filing an application with the City. Notice templates were provided in April 2024, and copies are on file with the Planning Division.

If approved, the applicant will also be required to provide each tenant with an exclusive right to contract for the purchase of their unit on the same or more favorable terms as initially offered to the general public. This right extends for 90 days following issuance of the subdivision public report pursuant to California Business and Professions Code section 11018.2, unless the tenant provides written notice declining the offer.

Covenants, Conditions, and Restrictions
ECMC section 17.60.320 requires the applicant/owner to submit CC&Rs for any improvements and facilities intended for common ownership and/or common maintenance. This includes, but is not limited to: streets, driveways, parking areas, landscaping, irrigation systems, fencing & walls, roofs, utilities, and common open spaces, as applicable. The CC&Rs must include the formation of an HOA, which is intended to manage all common facilities or contract for their management. Proposed conditions require that the applicant/owner submit draft CC&Rs for Planning, City Attorney, and Engineering Services review, and record CC&Rs prior to the recordation of a final map.

PLANNING COMMISSION RECOMMENDATION:

On January 20, 2026, the El Cajon Planning Commission ("Commission") held a public hearing for the proposed project. One public comment was received, seeking clarification of the purpose of the proposal. The public hearing was closed, and the Commission discussed the project.

Generally, the Commission felt that the proposed project was in the best interest of the community to increase homeownership opportunities. The Commission voted 5-0 to adopt Resolution Nos. 11193, 11194, & 11195 recommending City Council adoption of the CEQA Exemption, PUD No. 2025-0001, and TPM No. 2025-0014, subject to conditions.

FINDINGS:

Planned Unit Development No. 2025-0001
The density of the proposed PUD is consistent with the general plan.1.

The project site is designated Low Density Residential on the General Plan Land Use Map which permits a maximum density of 10 dwelling units per acre. The site includes four (4) dwelling units on a .61 acre parcel resulting in a net density of 6.5 dwelling units per acre, which is within the Low Density Residential designation density limit.

The approval of any alternative development standards for the proposed PUD is in the public interest.

2. The project does not propose alternative development standards from those of the underlying RM-6000 zone or the standards of conversion specified in El Cajon Municipal Code section

17.60.310.

The proposed PUD is compatible with surrounding development.3.

The project is consistent with nearby common interest developments and complies with applicable height and setback standards, maintaining compatibility with surrounding residential uses.

The location of structures, private streets, driveways, and parking spaces on the proposed PUD site plan will not result in unauthorized parking, which would block or hamper vehicular movement or unnecessarily affect visibility on the private street or driveway.

4. The project site plans reflects ample surface parking as well as two existing two-car garages with development flexibility for additional two-car garages. The project does not proposed structures or modified parking areas which would have a negative effect on visibility or hamper mobility on the private common lot driveway.

Tentative Subdivision Map No. 2025-0014
Section 66474 of the Subdivision Map Act and section 16.12.090 of the ECMC state that the City shall deny approval of a subdivision map if the City’s legislative body makes any of the following findings:

The proposed map is not consistent with the General Plan and any applicable specific plan.

1. The proposed map is consistent with the General Plan and General Plan goals related to housing that seek to provide a variety of residential development opportunities in the City and improve the quality of residential neighborhoods.

The design or improvement of the proposed subdivision is not consistent with the General Plan, and the site is not physically suitable for the type of development and proposed density.

2. The proposed map design results in a common interest residential project, which is consistent with the goals and objectives of the General Plan. Furthermore, development at the site is existing and is within the density limit established by the General Plan.

The design of the subdivision or the proposed improvements are likely to cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat.

3. The project site is developed and has no habitat value as it is in an urbanized area and bordered by developed properties. Minor updates resulting from the repairs listed in the Physical Elements Report will not cause substantial environmental damage. There are no fish or wildlife populations that would be harmed with residential development of the subject property.

The design of the subdivision or type of improvements is likely to cause serious health4.

The design of the subdivision or type of improvements is likely to cause serious health problems.

4. The design of the land division to create residential sub-lots is not likely to cause health problems. There are no known hazardous conditions at the site as it is not identified in any list or database compiled pursuant to Government Code section 65962.5.

The design of the subdivision or type of improvements will conflict with easements acquired by the public at large for access through or use of property within the subdivision.

5. The proposed map will not conflict with easements of record or easements established by court judgment, acquired by the public at large, for access through or use of property within the proposed map.

CALIFORNIA ENVIRONMENTAL QUALITY ACT:

The proposed project is categorically exempt from the provisions of the California Environmental Quality Act ("CEQA") according to section 15301 ("Existing Facilities") of the CEQA Guidelines.

Section 15301 provides an exemption for projects which include minor alterations involving such things as plumbing and electrical conveyance and rehabilitation of existing structures.

Therefore, the project meets criteria for a Class 1 Existing Facilities exemption. None of the exemptions listed under CEQA Guidelines section 15300.2 exist.

PUBLIC NOTICE & INPUT:

Notice of this public hearing was mailed on February 12, 2026, to all property owners within 300 feet of the project site and to anyone who requested such notice in writing, in compliance with Government Code sections 65090, 65091, and 65092, as applicable. Additionally, as a public service, the notice was posted in the kiosk at City Hall and on the City’s website under “Public Hearings/Public Notices.” The notice was also mailed to the two public libraries in the City of El Cajon, located at 201 East Douglas Avenue and 576 Garfield Avenue.

City staff did not receive any comments in response to the Notice of Public Hearing prior to preparation of this report. Comments received after publication will be presented to the City Council at the hearing.

RECOMMENDATION:

Staff recommends that the City Council adopt the next resolutions in order, approving Planned Unit Development No. 2025-0001 and Tentative Subdivision Map No. 2025-0014, subject to conditions. The project received a recommendation for approval from the El Cajon Planning Commission, increases homeownership opportunities, and is consistent with General Plan and Housing Element objectives.

Prepared By: Spencer Hayes-Flores, Associate Planner
Reviewed By: Yazmin Arellano, Director of Development Services Approved By: Graham Mitchell, City Manager
Attachments
Resolution - CEQA
Resolution - PUD
Resolution - TSM
PC Resolution CEQA
PC Resolution PUD
PC Resolution TSM
Public Hearing Notice/Location Map
Application & Disclosure Statement
Aerial Site Image
PUD Plans
TSM Exhibit
Applicant's Project Description
Physical Elements Report
RESOLUTION NO. ____-26

A RESOLUTION APPROVING CALIFORNIA ENVIRONMENTAL
QUALITY ACT (CEQA) CATEGORICAL EXEMPTION 15301 (EXISTING FACILITIES) FOR PLANNED UNIT DEVELOPMENT NO. 2025-0001
AND TENTATIVE SUBDIVISION MAP NO. 2025-0014, FOR THE CHASE

COMMON INTEREST CONVERSION, ON THE SOUTH SIDE OF WEST

CHASE AVENUE BETWEEN LEMON AVENUE AND EMERALD
AVENUE; APN: 492-410-25-00; GENERAL PLAN DESIGNATION: LOW

DENSITY RESIDENTIAL (LR)

WHEREAS, the El Cajon Planning Commission (the “Planning Commission”) held a duly advertised public hearing on January 20, 2026, to consider Planned Unit Development (“PUD”) No. 2025-0001 and Tentative Subdivision Map (“TSM”) No. 2025- 0014, as submitted by Dan Caruso, for the conversion of an existing four-unit residential development to a common interest development consisting of four residential sub- lots and a fifth common lot for utilities and driveway access , in the Residential, Multi-family, 6,000 square foot zone (“RM-6000”), on property located on the south side of West Chase Avenue between Lemon Avenue and Emerald Avenue, and addressed as 653 West Chase Avenue; and

WHEREAS, in accordance with California Environmental Quality Act ("CEQA") Guidelines section 15061(b)(2), and prior to making a recommendation to the City Council, the Planning Commission reviewed and considered the information contained in the project staff report; and

WHEREAS, the proposed project is categorically exempt from CEQA according to sections 15301 (Existing Facilities) of the CEQA Guidelines. Section 15301 provides an exemption for projects which include minor alterations involving such things as plumbing and electrical conveyance and rehabilitation of existing structures; and

WHEREAS, none of the conditions in section 15300.2, which provide exceptions for categorical exemptions exist; and

WHEREAS, CEQA Guidelines sections 15301 is the appropriate exemption for the proposed project and the record proceedings contain evidence to support the determination that Class 1 Categorical Exemption applies; and

WHEREAS, on January 20, 2026, the Planning Commission did consider the proposed CEQA Categorical Exemption pursuant to Section 15301, and adopted Resolution No. 11193 recommending City Council approval.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EL CAJON AS FOLLOWS:

Section 1. That the foregoing recitals are true and correct, and are findings of fact of the City Council.

Section 2. The City Council determines that the proposed project is categorically exempt from CEQA in accordance with Section 15301 (Existing Facilities) of the State CEQA Guidelines, where Section 15301 provides an exemption for projects including minor alterations, such as plumbing and electrical conveyance, and rehabilitation of existing structures.

[The remainder of this page is intentionally blank.]

RESOLUTION NO. ____-26

A RESOLUTION APPROVING PLANNED UNIT DEVELOPMENT NO.
2025-0001, FOR THE CHASE COMMON INTEREST CONVERSION, ON

THE SOUTH SIDE OF WEST CHASE AVENUE BETWEEN LEMON
AVENUE AND EMERALD AVENUE; APN: 492-410-25-00; GENERAL
PLAN DESIGNATION: LOW DENSITY RESIDENTIAL (LR)

WHEREAS, the El Cajon Planning Commission (the "Planning Commission") held a duly advertised public hearing on January 20, 2026, to consider Planned U nit Development ("PUD") No. 2025-0001 as submitted by Dan Caruso ("Applicant"), for the conversion of an existing four -unit residential development to a common interest development consisting of four residential sub-lots and a fifth common lot for utilities and driveway access, in the Residential, Multi-family, 6,000 square foot zone ("RM-6000"), on property located on the south side of West Chase Avenue between Lemon Avenue and Emerald Avenue, and addressed as 653 West Chase Avenue; and

WHEREAS, on January 20, 2026, the Planning Commission adopted Resolution No. 11193, recommending City Council approval of the California Environmental Quality Act ( "CEQA") Guidelines section 15301 exemption, adopted Resolution No. 11194 recommending City Council approval of PUD No. 2025- 0001, and adopted Resolution No. 11195 recommending City Council approval of TSM No. 2025-0001; and

WHEREAS, on February 24, 2026, City Council reviewed and considered the proposed CEQA exemptions found in Guidelines section 15301, and adopted Resolution No. ____-26; and

WHEREAS, the City Council held a duly advertised public hearing on February 24, 2026 to consider PUD No. 2025- 0001, and received evidence through public testimony and comment, in the form of verbal and written communications and reports.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EL CAJON AS FOLLOWS:

Section 1. The City Council finds that:

A. The project site is designated Low Density Residential on the General Plan Land Use Map which permits a maximum density of 10 dwelling units per acre.

The site includes three (4) dwelling units on a .61 acre parcel resulting in a net density of 6.5 dwelli ng units per acre, which is within the Low Density Residential designation density limit;

B. The project does not propose alternative development standards from that of the underlying RM -6000 zone or the standards of conversion specified in El Cajon Municipal Code section 17.60.310;

C. The project is consistent with nearby common interest developments and complies with applicable height and setback standards, maintaining compatibility with surrounding residential uses;

D. The project site plans reflects ample surface parking as well as two existing two-car garages with development flexibility for additional two-car garages. The project does not proposed structures or modified parking areas which would have a negative effect on visibility or hamper mobility on the private common lot driveway.

Section 2. The City Council hereby approves PUD No. 2025-0001 for the Chase Common Interest Development project in the RM -6000 zone, on the above described property, subject to the following conditions:

Planning

1. Prior to the issuance of building permits, or as otherwise determined by the Director of Community Development, the applicant shall submit and obtain approval of a revised one-page digital site plan for PUD No. 2025- 0001 that reflects the following notes and changes:
a. Include the following note: "This project shall comply with the Standard Conditions of Development from Planning Commission Resolution No. 10649, as applicable."
b. Include the following note: "Separate utility connections shall be provided and maintained for each unit, in conformance with El Cajon Municipal Code section (“ECMC”) 17.60.310."
c. The site plan shall reflect the required notes enumerated under the Engineering Services and Storm Water heading below.
d. The site plan shall reflect storage areas for refuse bins in private interior or rear yards.
e. The Lot Coverage table shall be revised to exclude Lot A for common access and utilities and divide the remaining area of lot coverage between residential sub-lots only.

2. Prior to the issuance of building permits, or as otherwise determined by the Director of Community Development, the applicant shall complete the following:
a. Record the final map for Tentative Subdivision Map ( "TSM") No. 2025-0014.

The map shall be in conformance with the approved PUD No. 2025- 0001 and TSM No. 2025- 0014. The final map must be prepared by a Registered Civil Engineer of a licensed land surveyor in accordance with Title 16 of the ECMC and the Subdivision Map Act. The applicant is responsible for having a final map recorded with the County Recorder within two years of the approval of the tentative subdivision map by the El Cajon City Council, or within the time limits of an extension granted.

b. Submit the required copies of the recorded final subdivision map to Engineering Services.
c. Comply with Engineering Services and Storm Water conditions to the satisfaction of the City Engineer and Director of Community Development. d. Draft and submit building plans which address all repair recommendations from the Physical Elements Report, dated July 31, 2024, and on file with Planning. e. Rehabilitate landscaping in the exterior front yard landscaping, the parkway on West Chase Avenue, and areas adjacent to the common driveway . If rehabilitated landscape area exceeds 2,500 square feet, submit and obtain approval of a landscape documentation package ( "LDP") in conformance with the requirements of the Water Efficient Landscape Or dinance in ECMC Chapter 17.195.
f. Accessory structures, if constructed prior to conversion to common interest, shall comply with the design standards contained in ECMC section 17.140.170.

3. Prior to building permit final, or as otherwise determined by the Director of Community Development, the applicant shall complete the following:
a. Obtain approval of the landscaping improvements from Planning and Engineering Services – Storm Water. In the case that an LDP was approved, submit a Certificate of Completion for landscaping improvements pursuant to ECMC section 17.195.330. The Certificate of Completion shall be signed by the professional of record for the LDP.
b. Obtain staff approval of the repair recommendations contained in the Physical Elements Report.

4. The applicant shall provide Planning with the following information pertaining to tenant notification and relocation:
a. Proof of the required 10- day notice of an application for a public report t o the Department of Real Estate, if applicable.
b. Proof of the 90-day notice of exclusive right to contract to purchase a respective unit to each tenant.
c. Proof that requirements contained in ECMC section 17.60.360 for tenant relocation assistance.

Engineering Service & Storm Water

5. Add the following note to the PUD No. 2025-0001 site plan:
a. "All operations must be in compliance with the City’s Jurisdictional Runoff Management Program ("JRMP") and the City’s Storm Water Ordinance (ECMC Chapters 13.10 and 16.60) to minimize or eliminate discharges of pollutants to the storm drain system. Operations shall include implementation of industrial Best Management Practices ( "BMPs") in accordance with Appendix C (Minimum BMPs)."

6. In accordance with the City of El Cajon Municipal Code Section 16.60, this project is

a Standard Development Project and is subject to the following requirements:
a. Incorporation of Best Management Practices (BMPs), composed of site design and source control BMPs. All applicable storm water BMP features shall be shown on site plan and, if required, the LDP.
b. Standard Development Projects shall complete Forms I -1, I-2, I-4 and I-5 and implement applicable BMPs in Forms I-4 and I-5.

Building Safety

7. A building permit is required for this project.

8. Comply with the currently adopted edition of the California Building Code, California Fire Code, California Mechanical Code, California Plumbing Code, California Electrical Code, and Green Building Standard Code, as applicable.

General

9. PUD No. 2025-0001 shall become null and void if accompanying TSM No. 2025-0014 is not recorded within the time frame permitted under the ECMC and Subdivision Map Act.

10. Applicant shall defend, indemnify, and hold harmless the City of El Cajon ("City"), its agents, officers, and employees from any and all claims, actions, proceedings, damages, judgments, or costs, including attorney's fees and costs incurred by the City and any claim for private attorney general fees and costs claimed by or awarded to any party against the City or its agents officers or employees against the City or its agents, officers, or employees, relating to the approval of the project (TSM No. 2025- 0014 and the PUD No. 2025- 0001) including, but not limited to, any action to attack, set aside, void, challenge, or annul this development approval and any environmental document or decision (including the Tentative Subdivision Map or Planned Unit Development approval and Categorical Exemption pursuant to CEQA Guidelines 15301), including any claims for violation of the Public Records Act or discovery law arising from and with respect to litigation involving these approvals (collectively "Development Approvals"). The City will promptly notify Applicant of any claim, action or proceeding concerning the Development Approvals. The City may elect to conduct its own defense, participate in its own defense, or obtain independent legal counsel in defense of any claim related to this indemnification. In the event of such election, Applicant shall pay all the costs related thereto, including without limitation reasonable attorney's fees and costs and shall submit a deposit to the City in an amount as requested by the City. In the event of such election Applicant shall pay all the costs related thereto including without limitation attorney's fees and costs incurred by the City. In the event of a disagreement between the City and Applicant regarding litigation issues, the City shall have the authority to control the litigation and make litigation related decisions, including, but not limited to, settlement or other disposition of the matter. However, the Applicant shall not be required to pay or perform any settlement unless such settlement is first approved by Applicant.

RESOLUTION NO. ____-26

A RESOLUTION APPROVING TENTATIVE SUBDIVISION MAP NO.
2025-0014, FOR THE CHASE COMMON INTEREST CONVERSION, ON

THE SOUTH SIDE OF WEST CHASE AVENUE BETWEEN LEMON
AVENUE AND EMERALD AVENUE; APN: 492-410-25-00; GENERAL
PLAN DESIGNATION: LOW DENSITY RESIDENTIAL (LR)

WHEREAS, the El Cajon Planning Commission held a duly advertised public hearing on January 20, 2026, to consider Tentative Subdivision Map ( "TSM") No. 2025- 0014 as submitted by Dan Caruso ("Applicant"), for the conversion of an existing four-unit residential development to a common interest development consisting of four residential sub-lots and a fifth common lot for utilities and driveway access, in the Residential, Multi- family, 6,000 square foot zone ("RM-6000"), on property located on the south side of West Chase Avenue between Lemon Avenue and Emerald Avenue, and addressed as 653 West Chase Avenue; and

WHEREAS, on January 20, 2026, the Planning Commission adopted Resolution No. 11193, recommending City Council approval of the California Environmental Quality Act ( "CEQA") Guidelines section 15301 exemption, adopted Resolution No. 11194 recommending City Council approval of PUD No. 2025- 0001, and adopted Resolution No. 11195 recommending City Council approval of TSM No. 2025-0001; and

WHEREAS, on February 24, 2026, City Council reviewed and considered the proposed CEQA exemptions found in Guidelines section 15301, and adopted Resolution No. ____-26; and

WHEREAS, the City Council held a duly advertised public hearing on February 24, 2026 to consider TSM No. 2025- 0014, and received evidence through public testimony and comment, in the form of verbal and written communications and reports.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EL CAJON AS FOLLOWS:

Section 1. The City Council finds that:

A. The proposed map is consistent with the General Plan and General Plan goals related to housing that seek to provide a variety of residential development opportunities in the City and improve the quality of residential neighborhoods;

B. The proposed map design results in a common interest residential project, which is consistent with the goals and objectives of the General Plan.

Furthermore, development at the site is existing and is within the density limit established by the General Plan;

C. The project site is developed and has no habitat value as it is in an urbanized area and bordered by developed properties. Minor updates resulting from the repairs listed in the Physical Elements Report will not cause substantial environmental damage. There are no fish or wildlife populations that would be harmed with residential development of the subject property;

D. The design of the land division to create residential sub- lots is not likely to cause health problems. There are no known hazardous conditions at the site as it is not identified in any list or database complied pursuant to Government Code section 65962.5;

E. The proposed map will not conflict with easements of record or easements established by court judgment, acquired by the public at large, for access through or use of property within the proposed map.

Section 2. The City Council hereby approves TSM No. 2025-0014 for the Chase Common Interest Development project in the RM -6000 zone, on the above described property, subject to the following conditions:

1. Prior to the issuance of building permits, or as otherwise determined by the Director of Public Works, the final map for TSM No. 2025- 0014 shall be recorded and the appropriate number of copies returned to the City.

2. The final map shall be accepted by the City Council and prepared for recordation in accordance with El Cajon Municipal Code ("ECMC") Chapter 16.20.

3. The recordation of the final map shall be in accordance with the time limits permitted in Government Code section 66452.6 et seq.

4. The final map shall be in substantial conformance with TSM N o. 2025-0014 and the PUD No. 2025-0001 site plan.

5. Prior to recordation of the final map, submit one electronic copy of the draft CC&Rs for approval by Planning, Storm Water, and the City Attorney. Prior to the issuance of the first Certificate of Occupancy, a Homeowner’s Association must be established and the CC&Rs recorded. A final approved set of CC&Rs must be submitted with the Final Map documents and recorded by the Title Company. The CC&Rs shall include the maintenance of the building exteriors, private streets, sidewalks, driveways, common lighting, common fencing and walls, storm water facilities, and common landscaping, as applicable, and shall contain the following language:
a. “This entire project and property shall be subject to all of the conditions and restrictions contained within the resolution adopted by the City of El Cajon which approved the tentative subdivision map for the project, as well as, being subject to all the conditions and restrictions contained in any permits issued for the project which were approved by the City of El Cajon, along with accompanying site plans, elevations and landscape plans.” b. “The City of El Cajon is hereby given supervisory jurisdiction over the enforcement of the provisions of this Declaration dealing with maintenance,

cleanliness and repair of the landscape and pavement maintenance easement, and exterior appearance of the project. In the event of breach of any duty pertaining to such maintenance, cleanliness, repair or exterior appearance, the City of El Cajon may give written notice of such breach to the Association or Owners, together with a demand upon them to remedy such breach. If they refuse to do so, or fail to take appropriate action within 30 days of the receipt of such notice, the City of El Cajon shall have the standing and the right (but not the obligation) to both bring an action in a court of proper jurisdiction to enforce the provisions of this Declaration and/or initiate abatement proceedings pursuant to the ordinances of the City of El Cajon. Nothing c ontained herein shall limit any other right or remedy which the City may exercise by virtue of authority contained in ordinance or state law."
c. “The City Attorney of El Cajon must give prior approval to any amendments to this Declaration of Covenants, Conditions and Restrictions which deal with any of the following topics:
i. Amendments with regard to the fundamental purpose for which the project was created (such as a change from residential use to a different use), and amendments which would affect the ability of the City of El Cajon to approve or disapprove external modifications to the project. ii. Amendments with regard to the supervisory jurisdiction for enforcement granted to the City of El Cajon by this Declaration.
iii. Property maintenance obligations, including maintenance of landscaping, sidewalks, and driveways, and cleanliness or repair of the project."
d. "Parking shall only occur in the approved private driveways, designated parking spaces, and private garages. No parking is permitted in required fire lanes."

6. No alteration or modification shall be made to the maintenance easement and maintenance obligations which are contrary to the development plan approved by and on file with the City of El Cajon without the approval of the City.

7. All common facilities or amenities shall be held in common and maintained by the Homeowner’s Association. All areas with the exception of the private yards identified in the Site Plan are to be maintained by the HOA. The final map shall identify all HOA ownership and maintenance areas and grant any and all easements appropriate or necessary for maintenance.

8. A Final Map must be prepared by a registered civil engineer or a licensed land surveyor in accordance with Title 16 of the El Cajon Municipal Code and the Subdivision Map Act. In order to complete the process of subdividing the property, the owner is responsible for having a Final Map recorded with the County Recorder within two (2) years after approval of the Tentative Subdivision Map by the City Council or within the time limits of an extension granted.

9. All public and private improvements must be constructed or guaranteed prior to the recordation of the final map. A guarantee must include private and public improvement agreements and bonds. The following public improvements are required:

a. Install one driveway along East Chase Avenue in accordance with San Diego Regional Standards Drawing G-26, pursuant to G-15 & G-16. b. Close the existing easterly driveway along East Chase Avenue and replace it with curb, gutter and sidewalk consistent with San Diego Regional Standard Drawings G-2, G-7 & G-11.
c. The fence within the public right-of-way shall be removed.

10. Prior to the recordation of a final map, the accessory dwelling unit addressed as 657 West Chase Avenue shall be upgraded to a primary dwelling unit and receive final occupancy. A building permit is required for modifications to the ADU. This improvement cannot be deferred through an improvement agreement or bond.

11. An encroachment permit is required prior to any work within the public right-of-way.

12. Applicant shall defend, indemnify, and hold harmless the City of El Cajon ("City"), its agents, officers, and employees from any and all claims, actions, proceedings, damages, judgments, or costs, including attorney's fees and costs incurred by the City and any claim for private attorney general fees and costs claimed by or awarded to any party against the City or its agents officers or employees against the City or its agents, officers, or employees, relating to the approval of the project ( TSM No. 2025-0014 and the PUD No. 2025- 0001) including, but not limited to, any action to attack, set aside, void, challenge, or annul this development approval and any environmental document or decision (including the Tentative Subdivision Map or Planned Unit Development approval and Categorical Exemption pursuant to CEQA Guidelines 15301), including any claims for violation of the Public Records Act or discovery law arising from and with respect to litigation involving these approvals (collectively "Development Approvals"). The City will promptly notify Applicant of any claim, action or proceeding concerning the Development Approvals. T he City may elect to conduct its own defense, participate in its own defense, or obtain independent legal counsel in defense of any claim related to this indemnification. In the event of such election, Applicant shall pay all the costs related thereto, including without limitation reasonable attorney's fees and costs and shall submit a deposit to the City in an amount as requested by the City. In the event of such election Applicant shall pay all the costs related thereto including without limitation attorney's fees and costs incurred by the City. In the event of a disagreement between the City and Applicant regarding litigation issues, the City shall have the authority to control the litigation and make litigation related decisions, including, but not limited to, settlement or other disposition of the matter. However, the A pplicant shall not be required to pay or perform any settlement unless such settlement is first approved by Applicant.

PLANNING COMMISSION RESOLUTION NO. 11193

A RESOLUTION RECOMMENDING CITY COUCIL APPROVAL OF

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
CATEGORICAL EXEMPTION 15301 (EXISTING FACILITIES) FOR
PLANNED UNIT DEVELOPMENT NO. 2025-0001 AND TENTATIVE
SUBDIVISION MAP NO. 2025-0014, FOR THE CHASE COMMON

INTEREST CONVERSION, ON THE SOUTH SIDE OF WEST CHASE
A VENUE BETWEEN LEMON A VENUE AND EMERALD A VENUE;
APN: 492-410-25-00; GENERAL PLAN DESIGNATION: LOW DENSITY RESIDENTIAL (LR).

WHEREAS, the El Cajon Planning Commission held a duly advertised public hearing on January 20, 2026, to consider Planned Unit Development ("PUD") No. 2025- 0001 and Tentative Subdivision Map ("TSM") No. 2025-0014, as submitted by Dan Caruso, for the conversion of an existing four-unit residential development to a common interest development consisting of four residential sub-lots and a fifth common lot for utilities and driveway access, in the Residential, Multi-family, 6,000 square foot zone ("RM-6000"), on property located on the south side of West Chase Avenue between Lemon A venue and Emerald A venue, and addressed as 653 West Chase A venue; and WHEREAS, in accordance with California Environmental Quality Act (11 CEQA 11 ) Guidelines section 15061(b)(2), the Planning Commission reviewed and considered the information contained in the project staff report; and
WHEREAS, the proposed project is categorically exempt from CEQA according to sections 15301 (Existing Facilities) of the CEQA Guidelines. Section 15301 provides an exemption for projects which include minor alterations involving such things as plumbing and electrical conveyance and rehabilitation of existing structures.

WHEREAS, none of the conditions in section 15300.2, which provide exceptions for categorical exemptions exist; and
WHEREAS, CEQA Guidelines sections 15301 is the appropriate exemption for the proposed project and the record proceedings contain evidence to support the determination that Class 1 Categorical Exemption applies; and WHEREAS, after considering evidence and facts, the Planning Commission did consider the proposed CEQA Categorical Exemption, Section 15301 as presented at its meeting.

Planning Commission Resolution No. 11193
NOW, THEREFORE, BE IT RESOLVED by the El Cajon Planning Commission as follows:

Section 1. That the foregoing recitals are true and correct, and are findings of fact of the El Cajon Planning Commission in regard to the proposed exemption for the Oakdale Common Interest Subdivision.

Section 2. That based upon said findings of fact, the El Cajon Planning Commission hereby RECOMMENDS that the City Council APPROVE of the proposed categorical exemption (CEQA Guidelines section 15301) for the Chase Common Interest Conversion, PUD No. 2025-0001 and TSM No. 2025-0014.
[The remainder of this page is intentionally blank]

Planning Commission Resolution No. 11193
PASSED AND ADOPTED by the El Cajon Planning Commission at a regular meeting held January 20, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ATTEST:

CIRCO, MROZ, POLLACK-RUDE, SOTTILE
NONE
EDISON
Anthony SOTTILE, Chair

PLANNING COMMISSION RESOLUTION NO. 11194

A RESOLUTION RECOMMENDING CITY COUCIL APPROVAL OF
PLANNED UNIT DEVELOPMENT NO. 2025-0001, FOR THE CHASE

COMMON INTEREST CONVERSION, ON THE SOUTH SIDE OF WEST

CHASE A VENUE BETWEEN LEMON A VENUE AND EMERALD
AVENUE; APN: 492-410-25-00; GENERAL PLAN DESIGNATION: LOW DENSITY RESIDENTIAL (LR).

WHEREAS, the El Cajon Planning Commission held a duly advertised public hearing on January 20, 2026, to consider Planned Unit Development ("PUD") No. 2025- 0001 as submitted by Dan Caruso, for the conversion of an existing four-unit residential development to a common interest development consisting of four residential sub-lots and a fifth common lot for utilities and driveway access, in the Residential, Multi-family, 6,000 square foot zone ("RM-6000"), on property located on the south side of West Chase A venue between Lemon A venue and Emerald A venue, and addressed as 653 West Chase Avenue; and
WHEREAS, the El Cajon Planning Commission adopted the next resolution in order recommending City Council approval of the California Environmental Quality Act ("CEQA") section 15301 exemption; and,
WHEREAS, the El Cajon Planning Commission adopted the next resolution in order recommending City Council approval of the proposed Tentative Subdivision Map ("TSM") No. 2025-0014 for a five-lot subdivision including four residential sub-lots and one common access and utilities lot; and,
WHEREAS, at the public hearing the El Cajon Planning Commission received evidence through public testimony and comment, in the form of verbal and written communications and reports prepared and presented to the Planning Commission, including (but not limited to) evidence such as the following:

A. The project site is designated Low Density Residential on the General Plan Land Use Map which permits a maximum density of 10 dwelling units per acre. The site includes three (4) dwelling units on a .61 acre parcel resulting in a net density of 6.5 dwelling units per acre, which is within the Low Density Residential designation density limit;
B. The project does not propose alternative development standards from that of the underlying RM-6000 zone or the standards of conversion specified in El Cajon Municipal Code section 17.60.310;

Planning Commission Resolution No. 11194
C. The project is consistent with nearby common interest developments and complies with applicable height and setback standards, maintaining compatibility with surrounding residential uses;
D. The project site plans reflects ample surface parking as well as two existing two­ car garages with development flexibility for additional two-car garages. The project does not proposed structures or modified parking areas which would have a negative effect on visibility or hamper mobility on the private common lot driveway.

NOW, THEREFORE, BE IT RESOLVED that based upon said findings of fact stated above, the El Cajon Planning Commission hereby RECOMMENDS that the City Council APPROVE Planned Unit Development No. 2025-0001 for the conversion of an existing four-unit residential development to a common interest development consisting of four residential sub-lots and a fifth common lot for utilities and driveway access, in the RM- 6000 zone, on the above described property, subject to the following conditions:

Planning

1. Prior to the issuance of building permits, or as otherwise determined by the Director of Community Development, the applicant shall submit and obtain approval of a revised one-page digital site plan for PUD No. 2025-0001 that reflects the following notes and changes:
a. Include the following note: "This project shall comply with the Standard Conditions of Development from Planning Commission Resolution No. 10649, as applicable."
b. Include the following note: "Separate utility connections shall be provided and maintained for each unit, in conformance with El Cajon Municipal Code section ("ECMC") 17.60.310."
c. The site plan shall reflect the required notes enumerated under the Engineering Services and Storm Water heading below.
d. The site plan shall reflect storage areas for refuse bins in private interior or rear yards.
e. The Lot Coverage table shall be revised to exclude Lot A for common access and utilities and divide the remaining area of lot coverage between residential sub-lots only.

2. Prior to the issuance of building permits, or as otherwise determined by the Director of Community Development, the applicant shall complete the following:
a. Record the final map for Tentative Subdivision Map ("TSM") No. 2025-0014.

The map shall be in conformance with the approved PUD No. 2025-0001 and TSM No. 2025-0014. The final map must be prepared by a Registered Civil

Planning Commission Resolution No. 11194
Engineer of a licensed land surveyor in accordance with Title 16 of the ECMC and the Subdivision Map Act. The applicant is responsible for having a final map recorded with the County Recorder within two years of the approval of the tentative subdivision map by the El Cajon City Council, or within the time limits of an extension granted.
b. Submit the required copies of the recorded final subdivision map to Engineering Services.
c. Comply with Engineering Services and Storm Water conditions to the satisfaction of the City Engineer and Director of Community Development. d. Draft and submit building plans which address all repair recommendations from the Physical Elements Report, dated July 31, 2024, and on file with Planning.
e. Rehabilitate landscaping in the exterior front yard landscaping, the parkway on West Chase Avenue, and areas adjacent to the common driveway. If rehabilitated landscape area exceeds 2,500 square feet, submit and obtain approval of a landscape documentation package ("LDP") in conformance with the requirements of the Water Efficient Landscape Ordinance in ECMC Chapter 17.195.
f. Accessory structures, if constructed prior to conversion to common interest, shall comply with the design standards contained in ECMC section 17.140.170.

3. Prior to building permit final, or as otherwise determined by the Director of Community Development, the applicant shall complete the following:
a. Obtain approval of the landscaping improvements from Planning and Engineering Services - Storm Water. In the case that an LDP was approved, submit a Certificate of Completion for landscaping improvements pursuant to ECMC section 17.195.330. The Certificate of Completion shall be signed by the professional of record for the LDP.
b. Obtain staff approval of the repair recommendations contained in the Physical Elements Report.

4. The applicant shall provide Planning with the following information pertaining to tenant notification and relocation:
a. Proof of the required 10-day notice of an application for a public report to the Department of Real Estate, if applicable.
b. Proof of the 90-day notice of exclusive right to contract to purchase a respective unit to each tenant.
c. Proof that requirements contained in ECMC section 17.60.360 for tenant relocation assistance.

Planning Commission Resolution No. 11194
Engineering Service & Storm Water

5. Add the following note to the PUD No. 2025-0001 site plan:
a. "All operations must be in compliance with the City's Jurisdictional Runoff Management Program (""JRMP") and the City's Storm Water Ordinance (ECMC Chapters 13.10 and 16.60) to minimize or eliminate discharges of pollutants to the storm drain system. Operations shall include implementation of industrial Best Management Practices ("BMPs") in accordance with Appendix C (Minimum BMPs)."

6. In accordance with the City of El Cajon Municipal Code Section 16.60, this project is a Standard Development Project and is subject to the following requirements:
a. Incorporation of Best Management Practices (BMPs), composed of site design and source control BMPs. All applicable storm water BMP features shall be shown on site plan and, if required, the LDP.
b. Standard Development Projects shall complete Forms I-1, I-2, I-4 and I-5 and implement applicable BMPs in Forms I-4 and I-5.

Building Safety

7. A building permit is required for this project.

8. Comply with the currently adopted edition of the California Building Code, California Fire Code, California Mechanical Code, California Plumbing Code, California Electrical Code, and Green Building Standard Code, as applicable.

General

9. PUD No. 2025-0001 shall become null and void if accompanying TSM No. 2025-0014 is not recorded within the time frame permitted under the ECMC and Subdivision Map Act.
[The remainder of this page is intentionally blank]

Planning Commission Resolution No . 11194
PASSED AND ADOPTED by the El Cajon Planning Commission at a regular meeting held January 20, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ATTEST:

CIRCO, MROZ, POLLACK-RUDE, SOTTILE
NONE
EDISON
Anthony SOTTILE, Chair

PLANNING COMMISSION RESOLUTION NO. 11195

A RESOLUTION RECOMMENDING CITY COUCIL APPROVAL OF
TENTATIVE SUBDIVISION MAP NO. 2025-0014, FOR THE CHASE

COMMON INTEREST CONVERSION, ON THE SOUTH SIDE OF WEST

CHASE A VENUE BETWEEN LEMON A VENUE AND EMERALD
AVENUE; APN: 492-410-25-00; GENERAL PLAN DESIGNATION: LOW DENSITY RESIDENTIAL (LR).

WHEREAS, the El Cajon Planning Commission held a duly advertised public hearing on January 20, 2026, to consider Tentative Subdivision Map ("TSM") No. 2025- 0014 as submitted by Dan Caruso, for the conversion of an existing four-unit residential development to a common interest development consisting of four residential sub-lots and a fifth common lot for utilities and driveway access, in the Residential, Multi-family, 6,000 square foot zone ("RM-6000"), on property located on the south side of West Chase A venue between Lemon A venue and Emerald A venue, and addressed as 653 West Chase Avenue; and
WHEREAS, the El Cajon Planning Commission adopted the next resolution in order recommending City Council approval of the California Environmental Quality Act ("CEQA") section 15301 exemption; and,
WHEREAS, the El Cajon Planning Commission adopted the next resolution in order recommending City Council approval of the proposed Planned Unit Development ("PUD") No. 2025-0001 for the conversion of an existing four-unit residential development to a common interest development; and,
WHEREAS, at the public hearing the El Cajon Planning Commission received evidence through public testimony and comment, in the form of verbal and written communications and reports prepared and presented to the Planning Commission, including (but not limited to) evidence such as the following:

A. The proposed map is consistent with the General Plan and General Plan goals related to housing that seek to provide a variety of residential development opportunities in the City and improve the quality of residential neighborhoods; B. The proposed map design results in a common interest residential project, which is consistent with the goals and objectives of the General Plan. Furthermore, development at the site is existing and is within the density limit established by the General Plan;

Planning Commission Resolution No. 11195
C. The project site is developed and has no habitat value as it is in an urbanized area and bordered by developed properties. Minor updates resulting from the repairs listed in the Physical Elements Report will not cause substantial environmental damage. There are no fish or wildlife populations that would be harmed with residential development of the subject property;
D. The design of the land division to create residential sub-lots is not likely to cause health problems. There are no known hazardous conditions at the site as it is not identified in any list or database complied pursuant to Government Code section 65962.5;
E. The proposed map will not conflict with easements of record or easements established by court judgment, acquired by the public at large, for access through or use of property within the proposed map.

NOW, THEREFORE, BE IT RESOLVED that based upon said findings of fact stated above, the El Cajon Planning Commission hereby RECOMMENDS that the City Council APPROVE Tentative Subdivision Map No. 2025-0014 for a five-lot subdivision including four residential sub-lots and one common access and utilities lot, in the RM-6000 zone on the above described property, subject to the following conditions:

1. Prior to the issuance of building permits, or as otherwise determined by the Director of Public Works, the final map for TSM No. 2025-0014 shall be recorded and the appropriate number of copies returned to the City.

2. The final map shall be accepted by the City Council and prepared for recordation in accordance with El Cajon Municipal Code ("ECMC") Chapter 16.20.

3. The recordation of the final map shall be in accordance with the time limits permitted in Government Code section 66452.6 et seq.

4. The final map shall be in substantial conformance with TSM No. 2025-0014 and the PUD No. 2025-0001 site plan.

5. Prior to recordation of the final map, submit one electronic copy of the draft CC&Rs for approval by Planning, Storm Water, and the City Attorney. Prior to the issuance of the first Certificate of Occupancy, a Homeowner' s Association must be established and the CC&Rs recorded. A final approved set of CC&Rs must be submitted with the Final Map documents and recorded by the Title Company. The CC&Rs shall include the maintenance of the building exteriors, private streets, sidewalks, driveways, common lighting, common fencing and walls, storm water facilities, and common landscaping, as applicable, and shall contain the following language:
a. "This entire project and property shall be subject to all of the conditions and restrictions contained within the resolution adopted by the City of El Cajon which approved the tentative subdivision map for the project, as well as, being

Plaiming Commission Resolution No. 11195
subject to all the conditions and restrictions contained in any permits issued for the project which were approved by the City of El Cajon, along with accompanying site plans, elevations and landscape plans." b. "The City of El Cajon is hereby given supervisory jurisdiction over the enforcement of the provisions of this Declaration dealing with maintenance, cleanliness and repair of the landscape and pavement maintenance easement, and exterior appearance of the project. In the event of breach of any duty pertaining to such maintenance, cleanliness, repair or exterior appearance, the City of El Cajon may give written notice of such breach to the Association or Owners, together with a demand upon them to remedy such breach. If they refuse to do so, or fail to take appropriate action within 30 days of the receipt of such notice, the City of El Cajon shall have the standing and the right (but not the obligation) to both bring an action in a court of proper jurisdiction to enforce the provisions of this Declaration and/ or initiate abatement proceedings pursuant to the ordinances of the City of El Cajon. Nothing contained herein shall limit any other right or remedy which the City may exercise by virtue of authority contained in ordinance or state law." c. "The City Attorney of El Cajon must give prior approval to any amendments to this Declaration of Covenants, Conditions and Restrictions which deal with any of the following topics:
i. Amendments with regard to the fundamental purpose for which the project was created (such as a change from residential use to a different use), and amendments which would affect the ability of the City of El Cajon to approve or disapprove external modifications to the project. ii. Amendments with regard to the supervisory jurisdiction for enforcement granted to the City of El Cajon by this Declaration. iii. Property maintenance obligations, including maintenance of landscaping, sidewalks, and driveways, and cleanliness or repair of the project."
d. "Parking shall only occur in the approved private driveways, designated parking spaces, and private garages. No parking is permitted in required fire lanes."

6. No alteration or modification shall be made to the maintenance easement and maintenance obligations which are contrary to the development plan approved by and on file with the City of El Cajon without the approval of the City.

7. All common facilities or amenities shall be held in common and maintained by the Homeowner' s Association. All areas with the exception of the private yards identified in the Site Plan are to be maintained by the HOA. The final map shall identify all HOA ownership and maintenance areas and grant any and all easements appropriate or necessary for maintenance.

Planning Commission Resolution No. 11195

8. A Final Map must be prepared by a registered civil engineer or a licensed land surveyor in accordance with Title 16 of the El Cajon Municipal Code and the Subdivision Map Act. In order to complete the process of subdividing the property, the owner is responsible for having a Final Map recorded with the County Recorder within two (2) years after approval of the Tentative Subdivision Map by the City Council or within the time limits of an extension granted.

9. All public and private improvements must be constructed or guaranteed prior to the recordation of the final map. A guarantee must include private and public improvement agreements and bonds. The following public improvements are required:
a. Install one driveway along East Chase A venue in accordance with San Diego Regional Standards Drawing G-26, pursuant to G-15 & G-16. b. Close the existing easterly driveway along East Chase A venue and replace it with curb, gutter and sidewalk consistent with San Diego Regional Standard Drawings G-2, G-7 & G-11.
c. The fence within the public right-of-way shall be removed.

10. Prior to the recordation of a final map, the accessory dwelling unit addressed as 657 West Chase Avenue shall be upgraded to a primary dwelling unit and receive final occupancy. A building permit is required for modifications to the ADU. This improvement cannot be deferred through an improvement agreement or bond.

11. An encroachment permit is required prior to any work within the public right-of­ way.
[The remainder of this page is intentionally blank]

Planning Commission Resolution No. 11195
PASSED AND ADOPTED by the El Cajon Planning Commission at a regular meeting held January 20, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ATTEST:

CIRCO, MROZ, POLLACK-RUDE, SOTTILE
NONE
EDISON
a~
Anthony SOTTILE, Chair

C - N
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All property owners within this line
shall receive notification
Subject Site

NOTICE OF PROPOSED

PLANNED UNIT DEVELOPMENT AND TENTATIVE PARCEL MAP
FOR A 4-UNIT CONVERSION TO COMMON INTEREST

N O T I C E I S H E R E B Y G I V E N t ha t t he E l C a j on C i t y C ou nc i l w i l l hol d a p u b l i c he a ri ng a t 3:00 p.m., Tuesday, February 24, 2026, i n t he C i t y C ou nc i l C ha m b e rs , 2 0 0 C i v i c C e nt e r W a y , E l C a j on, C A , t o c ons i d e r:
PLANNED UNIT DEVELOPMENT (PUD) NO. 2025-0001 and TENTATIVE PARCEL MAP (TPM) NO. 2025-0014, a s s u b m i t t e d b y W a l s h E ngi ne e ri ng & S u rv e y i ng, I nc . on b e ha l f of D a n C a ru s o, re qu e s t i ng t o c onv e rt a n e x i s t i ng 4 - u ni t re s i d e nt i a l d e v e l op m e nt t o a c om m on i nt e re s t d e v e l op m e nt i nc l u d i ng fou r re s i d e nt i a l s u b - l ot s a nd c om m on a c c e s s a nd u t i l i t i e s l ot i n t he R e s i d e nt i a l , M u l t i - fa m i l y , 6 , 0 0 0 s qu a re foot ( R M- 6 0 0 0 ) z one . T he p rop e rt y i s l oc a t e d on W e s t C ha s e A v e nu e b e t w e e n L e m on a nd E m e ra l d A v e nu e s , a nd i s a d d re s s e d a s 6 5 3 W e s t C ha s e A v e nu e , A P N 4 9 2 - 4 1 0 - 2 5 - 0 0 . T hi s p roj e c t i s e x e m p t from t he C a l i forni a E nv i ronm e nt a l Q u a l i t y A c t ( C E Q A ) .
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City of El Cajon
Type of Planning Permit(s) Requested:

LJAZP
Administrative Zoning
Permit
0MUP
Minor Use Permit
osp
Specific Plan
0VAR
Variance
Project Location
Parcel Number (APN):
cuP
Conditional Use Permit
0PRD
Planned Residential
Development
0SCR
Substantial
Conformance Review
0ZR
Zone Reclassification
492-410-25
Project Assistance Center

PLANNING PERMIT APPLICATION
OLLA MA
Lot Line Adjustment Minor Amendment
[ZIPUD 0SDP
Planned Unit Site Development Plan
Development Permit
0TPM 0TSM
Tentative Parcel Map Tentative Subdivision
Map
other:

Address: 653-669 W. Chase Avenue El Cajon, CA 92020
Nearest Intersection: Emerald Ave & Chase Ave
Project Description (or attach separate narrative)
There are 4 homes on one parcel. The project is to subdivide via TPM/PUD to put each home on its own parcel.

Project Screening Questions If yes, please describe:

Existing use? 0No 12]Yes Residential
Modification of use? 0No Oves
New development or addition? 0No 0Yes
Existing Structures? No 0Yes Age of the structures : 1969 200 Civic Center Way I El Cajon I California I 92020 I 619-441-1742 Main I 619-441-1743 Fax

Demolition or substantia l
modification proposed to site
improvements or structures?
Tenant improvements proposed?
~No 0Yes
@No
0No
0Yes
0Yes Existing vegetation or trees on site
proposed for removal?
Proposed grading? 0No 0Yes Proposed quantities of cut and/or fill.

Applicant Information (the individual or entity proposing to carry out the project; not for consultants) Company Name:

Contact Name: Dan Caruso
Mailing Address: 661 W. Chase Avenue El Cajon, CA 92020 Phone: 352-789-1010 Email: [email protected]
Interest in Property: [2]own 0 Lease D Option
Project Representative Information (if different than applicant; consultant information here) Company Name: Walsh Engineering & Surveying, Inc.

Contact Name: _L_a_rr...L.y_W_a_ls_h ___ License: RCE 46316 Mailing Address: 607 Aldwych Road, El Cajon, CA 92020
Phone: 619-588-6747 Email: [email protected]
Property Owner Information (if different than applicant) Company Name:

Contact Name: Dan Caruso
Mailing Address: 661 W. Chase Avenue El Cajon, CA 92020 Phone: 352-789-1010 Email: [email protected]
Hazardous Waste and Substances Statement
Section 65962.S(f) of the State of California Government Code requires that before the City of El Cajon accepts as complete an application for any discretionary project, the applicant submit a signed statement indicating whether or not the project site is identified on the State of California Hazardous Waste and Substances Sites List. This list identifies known sites that have been subject to releases of hazardous 200 Civic Center Way I El Cajon I California I 92020 I 619-441-1742 Main I 619-441-1743 Fax

chemicals, and is available at http://www .calepa.ca.gov/sitecleanup/corteselist/. Check the appropriate box and if applicable, provide the necessary information:

The development project and any alternatives proposed in this application:
0 is/are NOT contained on the lists compiled pursuant to Government Code Section 65962.5.

Dis/are contained on the lists compiled pursuant to Government Code Section 65962.5.

If yes, provide Regulatory Identification Number: _______ Date of List: _____ _ Authorization

1. Applicant Signature 1:

Property Owner
Signature 2:

Date:

Date:

Applicant's Signature: I certify that I hav ~ d this application and state that the above information is correct, and that I am the property owner, authorized agent of the property owner, or other person having a legal right, interest, or entitlement to the use of the property that is the subject of this application. I understand that the applicant is responsible for knowing and complying with the governing policies and regulations applicable to the proposed development or permit. The City is not liable for any damages or loss resulting from the actual or alleged failure to inform the applicant of any applicable laws or regulat ions, including before or during final inspections. City approval of a permit application, including all related plans and documents , is not a grant of approval to violate any applicable policy or regulation, nor does it constitute a waiver by the City to pursue any remedy, which may be available to enforce and correct violations of the applicable policie s and regulations. I authorize representatives of the City to enter the subject property for inspection purposes.

2. Property Owner's Signature: If not the same as the applicant , property owner must also sign. A signed, expressed letter of consent to this application may be provided separately instead of signing this application form. By signing, property owner acknowledges and consents to all authorizations, requirements, conditions and notices described in this application. Notice of Restriction : property owner further acknowledges and consents to a Notice of Restriction being recorded on the title to their property related to approval of the requested permit. A Notice of Restriction runs with the land and binds any successors in interest.

Pre-submittal Review
The purpose of a pre-submittal review is to provide you an opportunity to review your project with the City's development team in a preliminary form to finalize submittal requirements and receive a cursory identification of potential issues. A pre-application is required unless waived by staff. 200 Civic Center Way I El Cajon I California I 92020 I 619-441-1742 Main I 619-441-1743 Fax

Disclosure Statement
Project Assistance Center
Planning Group

DISCLOSURE STATEMENT
This statement is intended to identify and avoid potential conflicts of interest that may exist between the project proponents and the decision makers; including City staff, Planning Commissioners, and City Council members.

The following information must be disclosed:

1. List the names and addresses of all persons having a financial interest in the application.

List the names and address of all persons having any ownership interest in the property involved.

2. If any person identified pursuant to (1) above is a corporation or partnership, list the names and addresses of all individuals owning more than 10% of the shares in the corporation or owning any partnership interest in the partnership.

3. If any person identified pursuant to (1) above is a trust, list the name and address of any person serving as trustee or beneficiary or trustor of the trust. 200 Civic Center Way I El Cajon I California I 92020 I 619-441-1742 Main I 619-441-1743 Fax

4. Have you or your agents transacted more than $500.00 worth of business with any member of City staff, Boards, Commissions, Committees and Council within the past 12 months or $1,000.00 with the spouse of any such person? Yes __ No -t-- lf yes, please indicate person(s), dates, and amounts of such transactions or gifts.

N/k
"Person" is defined as "Any individual, proprietorship, firm , partnership, joint venture, syndicate, business trust, company, corporation, association, committee, and any other organization or group of persons acting in concert." Gov't Code §82047.

Dan Caruso
Print or type name of applicant
NOTE: Attach appropriate names on additional pages as necessary.

Aerial Image
PUD No. 2025-0001 & TSM No. 2025-0014
653 West Chase Avenue

Subject Site
XX
X
X
X X
XXX
XX
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X X
X
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XXXXXXXXXXXXXXX
CITY OF EL CAJON SHEET 11 SHEET
PLANNED UNIT DEVELOPMENT 2025-0001
APPLICANT:

ASSESSOR PARCEL NO(S):

REQUEST:

DATE:

APPROVED BY:
1870 Cordell Court, Suite 102, El Cajon, CA 92020
(619) 588-6747 (619) 448-7132 Fax
46316

REGISTERED PROFESSIONAL ENGINEER

LAWRENCE W
. WALSH

STATE OF

CALIFORNIA
C
IV
IL

NEW/REPLACED IMPERVIOUS AREA
AC

GARAGES
ADU
607 ALDWICH ROAD
EL CAJON, CA 92020
PHONE:

ADDRESS:

DRAWN BY:
(619) 588-6747
BLVD.

EL CAJON
SITE

EMERALD STREET
CHASE AVENUE 8

VICINITY MAP

DANIEL CARUSO

SUBDIVIDE TO CREATE FOUR LOTS
492-410-25
N
0 SCALE: 1"=
60' 40' 20' 10' 20'
20'

LOT
1 2
3 4
A
TOTAL
GROSS = NET
4,031 SF
4,719 SF
5,155 SF
7,720 SF
4,988 SF
26,613 SF
2,537 SF
800 SF
1,100 SF
LOT
1 2
3 4
A
SITE

PERCENT
35%
33%
34%
37%
0%
28%

LOT COVERAGE

REMAINING

2.4%

2.4%

2.4%

2.4%

2.4%
12%

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LEGEND:

G) EXISTING HOUSE TO REMAIN
@ EXISTING WOOD FENCE TO BE REMOVED
@ EXISTING WOOD FENCE TO REMAIN
(D EXISTING CONCRETE TO REMAIN
@ PROPOSED 20' DRIVEWAY PER RSD G-14A
@ EXISTING SEWER CLEAN OUT TO REMAIN
(J) EXISTING TRANSFORMER BOX TO REMAIN
@ EXISTING SIDEWALK TO REMAIN
@ EXISTING CURB &: GUTTER TO REMAIN
@) EXISTING STREET LIGHT TO REMAIN
@ EXISTING STORM DRAIN MANHOLE TO REMAIN
@ EXISTING 36" ACP WATER TO REMAIN
@ EXISTING B" ACP WATER TO REMAIN
@ EXISTING WATER GATE VALVE TO REMAIN
@) EXISTING B" VCP SEWER TO REMAIN
@) EXISTING SEWER MANHOLE TO REMAIN
@ EXISTING 2" HP GAS TO REMAIN
APN 492-410-12
APN 492-410-23
@) EXISTING GARAGE FOR THE PURPOSE OF PARKING 2 VEHICLES TO REMAIN @) EXISTING 57"x3B" CSPA STORM DRAIN TO REMAIN
@) EXISTING FIRE HYDRANT TO REMAIN
@ EXISTING WATER METER TO REMAIN
@ EXISTING DRIVEWAY TO BE REMOVED &: REPLACED WITH PCC CURB, GUTTER &: SIDEWALIK PER RSD G-2, G-7 &: G-11
@ EXISTING SDG&:E VAULT AND RETAINING WALL TO REMAIN
G) G)
G)
@ PROPOSED PARKING SPACE
@ PROPOSED TWO CAR GARAGE
@ PROPOSED AC PAVEMENT
@ EXISTING SEWER LATERAL TO REMAIN
CD
@ 3 PROPOSED WATER SERVICES AND WATER METERS
@ EXISTING RV AWNING TO BE REMOVED
@) EXISTING AC PAVEMENT TO BE REMOVED
@ EXISTING PUBLIC BUS STOP WAITING AREA TO REMAIN
(g) EXISTING PUBLIC BUS STOP SIGN TO REMAIN
@) EXISTING PATIO COVER TO BE REMOVED
' ' ' '
' ' '
' ' ' '

67.18'
LOT4
G)
@ POSSIBLE LOCATION OF SEWER LATERAL PER OWNER TO REMAIN @) POSSIBLE LOCATION OF SEWER CLEAN OUT {NOT FIELD VERIFIED) @) PROPOSED PARKING STRIPE
@ EXISTING ADU TO BE PERMITTED AS PRIMARY DWELLING UNIT @) POSSIBLE LOCATION OF SEWER LATERAL PER OWNER TO BE REMOVED @) PROPOSED SEWER LATERAL
@ PROPOSED SEWER CLEANOUT
@ PROPOSED DOUBLE CLEANOUT PER CITY OF EL CAJON STANDARD DWG NO. 31B0
@ EXISTING CLEANOUT TO BE CAPPED AND COVER TO BE REMOVED @ POSSIBLE LOCATION OF POSSIBLE TRASH BINS
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EASEMENT NOTES:

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EASEMENTS PLOTTED PER PRELIMINARY REPORT PREPARED BY
CORINTHIAN TITLE COMPANY; ORDER NO. 2017620-HT, DATED
DECEMBER 04, 2024
@ 8' WIDE SDG&:E EASEMENT PER DOCUMENT RECORDED
SEPTEMBER 12, 1973 AS DOC# 1973-256681
@ PROPOSED PRIVATE ROAD AND UTILITY EASEMENT OVER
LOT A IN BENEFIT OF LOTS 1, 2, 3, AND 4
@ PROPOSED 7' WIDE PRIVATE SEWER EASEMENT OVER
LOT 4 IN BENEFIT OF LOT 3
NOTES:

1. LEGAL DESCRIPTION: EAST 94' OF WEST 376' OF NORTIH 300' OF LOT "A", OF

FROEHLICH TRACT, IN TIHE CITY OF EL CAJON, COUNTY OF SAN

DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF
NO, 1543, FILED IN TIHE OFFICE OF TIHE COUNTY RECORDER OF SAN DIEGO COUNTY, MARCH 12, 1913

2. ASSESSOR'S PARCEL NO.: 492-410-25

3. EXISTING ZONING: RM-6000, RESIDENTIAL MUL Tl FAMILY

4. SITE ADDRESS: 653, 657, 661 &: 669 W. CHASE AVE, EL CAJON, CA 92020

5. PROJECT AREA: 26,613 SF

6. PARKING PROVIDED: 12 SPACES

7. NO. OF DWEWNG UNITS: 4 SINGLE FAMILY RESIDENCE

8. LANDSCAPING PROVIDED: AU. LANDSCAPING IS EXISTING

9. RECREATION: 100 SF (10x10) MIN. PER PARCEL

10. LOT A IS DESIGNATED AS A NON-BUIWABLE LOT FOR INGRESS &: EGRESS, WATER, SEWER AND OTHER UTILITY PURPOSES, FOR TIHE COMMON USE &:

BENEFIT OF LOTS 1, 2, 3 &: 4.

11. CITY OF EL CAJON FIRE DEPARTMENT REQUIRES: "ADDRESS MONUMENT WITH 5 INCH NUMBERS AT STREET AND VISABLE FROM BOTH DIRECTIONS."

12. GARAGES DESIGNAlED ON LOTS 1, 2, 3 &: 4 SHALL BE USED FOR TIHE PURPOSE OF PARKING TWO VEHICLES. SHALL REMAIN AVAILABLE FOR PARKING AT ALL TIMES.

OWNERS/ APPLICANTS:

DANIEL JEROME CARUSO, TRUSTEE

DANIEL JEROME CARUSO REVOCABLE
TRUST, DATED MAY 27, 2010
661 W. CHASE AVENUE
EL CAJON, CA 92020
(352) 789-1010

JOHN WIWAM CARUSO, TRUSTEE

JOHN WIWAM CARUSO REVOCABLE
TRUST, DATED JANUARY 2, 2009
661 W, CHASE AVENUE
EL CAJON, CA 92020
(352) 789-1010
PREPARED BY:

DATE
DATE
LAWRENCE W. WALSH RCE 46316 DATE
~.,4~.,4 Walsh Engineering & Surveying, Inc.
,,.,,.

WALSH ENGINEERING & SURVEYING, INC.

X X
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LA
W
RENCE W. WALSH

C I V I L

STATE OF CALIFORNIA

REGISTEREDPROFESSIONALENGINEER

LAND DIVISION STATEMENT / OWNER'S CERTIFICATE
1870 Cordell Court, Suite 102, El Cajon, CA 92020
(619) 588-6747 (619) 448-7132 Fax
N
0 SCALE: 1"=
60'40'20'10' 20'
20'
BLVD.

EL CAJON
SITE

EMERALD STREET
CHASE AVENUE8

VICINITY MAP

LOT
1 2
3 4
A
TOTAL
GROSS = NET
4,031 SF
4,719 SF
5,155 SF
7,720 SF
4,988 SF
26,613 SF
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CD EXISTING HOUSE TO REMAIN
@ EXISTING WOOD FENCE TO BE REMOVED
@ EXISTING WOOD FENCE TO REMAIN
© EXISTING CONCRETE TO REMAIN
@ PROPOSED 20' DRIVEWAY PER RSD G-14A
@ EXISTING SEWER CLEAN OUT TO REMAIN
(j) EXISTING TRANSFORMER BOX TO REMAIN
@ EXISTING SIDEWALK TO REMAIN
@ EXISTING CURB & GUTTER TO REMAIN
@) EXISTING STREET LIGHT TO REMAIN
@ EXISTING STORM DRAIN MANHOLE TO REMAIN
@ EXISTING 35• ACP WATER TO REMAIN
@ EXISTING 8• ACP WATER TO REMAIN
@ EXISTING WATER GATE VALVE TO REMAIN
@ EXISTING 8• VCP SEWER TO REMAIN
@) EXISTING SEWER MANHOLE TO REMAIN
@ EXISTING 2• HP GAS TO REMAIN
.. ,.: .. .... , ..
@) EXISTING GARAGE FOR THE PURPOSE OF PARKING 2

VEHICLES TO REMAIN
@) EXISTING 57•x38n CSPA STORM DRAIN TO REMAIN
@) EXISTING FIRE HYDRANT TO REMAIN
@ EXISTING WATER METER TO REMAIN
@ EXISTING DRIVEWAY TO BE REMOVED & REPLACED WITH

PCC CURB, GUTTER & SIDEWALK PER
RSD G-2, G-7 & G-11

TEN TAT/VE SUBD/V/S/ON MAP
APN 492-410-23
CD
@ EXISTING SDG&E VAULT AND RETAINING WALL TO REMAIN
@ PROPOSED PARKING SPACE
@ PROPOSED TWO CAR GARAGE
@ PROPOSED AC PAVEMENT
@ EXISTING SEWER LATERAL TO REMAIN
@) 3 PROPOSED WATER SERVICES AND WATER METERS
@ EXISTING RV AWNING TO BE REMOVED
@) EXISTING AC TO BE REMOVED
@ EXISTING PATIO COVER TO BE REMOVED
@ POSSIBLE LOCATION OF SEWER LATERAL PER OWNER TO
REMAIN
@ POSSIBLE LOCATION OF SEWER CLEAN OUT
(NOT FIELD VERIFIED)
@ PROPOSED PARKING STRIPE
@) EXISTING ADU TO BE PERMITTED AS PRIMARY DWELLING
UNIT
@ POSSIBLE LOCATION OF SEWER LATERAL TO BE REMOVED
@ PROPOSED SEWER LATERAL
@ PROPOSED SEWER CLEAN OUT
@) PROPOSED DOUBLE CLEANOUT PER CITY OF EL CAJON
STANDARD DWG NO. 3180
@) EXISTING CLEANOUT TO BE CAPPED AND COVER TO BE

REMOVED
@ POSSIBLE LOCATION OF POSSIBLE TRASH BINS
APN 492-410-12
N 00"06' 39" E 283.11'
12'
100.59'
N 00•05'39• E
CD
I HEREBY CERTIFY THAT I AM THE RECORD OWNER, AS SHOWN ON lHE LA TEST EQUALIZED COUNTY ASSESSMENT, OF THE PROPERTY SHOWN ON THE TENTATIVE PARCEL MAP. ALIL OF MY CONTIGUOUS OWNERSHIP WITHIN AND BEYOND lHE BOUNDARIES OF lHE TENTATIVE PARCEL MAP ARE SHOWN. lHE BASIS OF CREATION OF THE LOTS IN MY OWNERSHIP {e.g. PARCEL MAP, FINAL MAP, CERTIFICATE OF COMPLIANCE, RECORDED DEED BEFORE 2/1/72) IS INDICATED ON lHE TENTATIVE PARCEL MAP. I UNDERSTAND THAT PROPERTY IS CONSIDERED

AS CONTIGUOUS EVEN IF IT IS SEPARATED BY ROADS, STREETS, UTILITY EASEMENTS OR RAILROAD RIGHT-OF-WAY. •FREEWAY" AS DEFINED IN SECTION 23.5 OF lHE STREETS AND HIGHWAY CODE, SHALL NOT BE CONSIDERED AS ROADS OR STREETS.

I FURlHER CERTIFY lHAT I WILL NOT, BY THIS APPLICATION, CREA TE OR CAUSE TO BE CREATED, OR WILIL NOT HAVE PARTICIPATED IN lHE CREATION OF MORE lHAN FOUR PARCELS

ON CONTIGUOUS PROPERTY UNLESS SUCH CONTIGUOUS PARCELS WERE CREATED BY MAJOR SUBDIVISION. FOR PURPOSES OF THIS CERTIFICATION, THE TERM •PARTICIPATED• MEANS HAVING COOPERATED WllH OR ACTED IN A PLANNING, COORDINATING OR DECISION-MAKING CAPACITY IN ANY FORMAL OR INFORMAL ASSOCIATION OR PARTNERSHIP FOR lHE PURPOSE OF DIVIDING REAL PROPERTY.

I CERTIFY UNDER PENAL TY OF PERJURY lHA T THE FOREGOING IS TRUE AND CORRECT.

EXECUTED THIS 22ND DAY OF APRIL, 2025 AT SAN DIEGO, CALIFORNIA.

DANIEL JEROME CARUSO, TRUSTEE

DANIEL JEROME CARUSO REVOCABLE
TRUST, DATED MAY 27, 2010
661 W. CHASE A VENUE
EL CAJON, CA 92020
(352) 789-1010

JOHN WILLIAM CARUSO, TRUSTEE

JOHN WILLIAM CARUSO REVOCABLE
TRUST, DA TED JANUARY 2, 2009
661 W. CHASE A VENUE
EL CAJON, CA 92020
(352) 789-1010
46316
I'--
0 1. TAX ASSESSOR'S PARCEL NUMBER:

I 492-410-25 z ..---

0.. I'-- 2. EAST 94' OF WEST 376' OF NORTH <Cv 300' OF LOT •A•, OF FROEHLICH I

N TRACT, IN THE CITY OF EL CAJON,
0) COUNTY OF SAN DIEGO, STATE OF
v CALIFORNIA, ACCORDING TO MAP

67.18' THEREOF NO. 1543, FILED IN lHE
OFFICE OF lHE COUNTY RECORDER OF
SAN DIEGO COUNTY, MARCH 12, 1913
r.o
0 3. EXISTING ZONING: RM-6OOO, I RESIDENTIAL MULTI FAMILY 'b ..--- 0 I'--
..j. v 4. GENERAL PLAN LAND USE 0)
I DESIGNATION: LR, LOW DENSITY
~ N RESIDENTIAL 0)
'in v 5. LOCATION AND STATUS OF
LOT4
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EXISTING LEGAL ACCESS TO io z :at 0.. SUBJECT PROPERTY: THE PROJECT 0)
FRONTS W. CHASE AVENUE, A (X) <(
CD z PUBLICLY MAINTAINED ROAD

6. ASSOCIATED PERMITS: NONE

7. SEWER: CITY OF EL CAJON
12'

8. WATER: HELIX WATER DISTRICT
LO
0 9. FIRE: HEARTLAND FIRE DEPARTMENT I ..--- 10. SCHOOL DISTRICTS: I'-- ELEMENTARY: CAJON VALILEY UNION v I HIGH SCHOOL: GROSSMONT UNION
N
0) 11. GRADING: NONE
v
z EASEMENT NOTES: 0..
<(

EASEMENTS PLOTTED PER PRELIMINARY
REPORT PREPARED BY CORINlHIAN TITILE
COMPANY; ORDER NO. 2O1762O-HT,
DA TED DECEMBER 04, 2024
@ 8' WIDE SDG&E EASEMENT PER

DOCUMENT RECORDED
SEPTEMBER 12, 1973 AS
DOC# 1973-256681
® PROPOSED PRIVATE ROAD AND

UTILITY EASEMENT OVER LOT A IN
BENEFIT OF LOTS 1, 2, 3, AND 4
© PROPOSED 7' WIDE PRIVATE SEWER
EASEMENT OVER LOT 4 IN BENEFIT
OF LOT 3
PREPARED BY:

LAWRENCE W. WALSH, RCE 46316 DATE
~ Walsh Engineering & Surveying, Inc.
, -------------------------------------------------------------------------------------------L: \PROJECTS 3D\03413-CARUSO\PRODUCllON DRAWINGS\03413 ENG BASE.DWG November 25, 2025 - 10: 12am ~
I
Project Description

The purpose of this project is to convert an existing development to a common interest division located at 653-669 West Chase Avenue, El Cajon, CA 92020 (APN 491-410-25) into four lots and a private street lot ranging from 4,031 to 7,184 square feet. The private street lot, Lot A, is designated as a non- buildable lot for ingress and egress, water, sewer, and other utility purposes, for the common use and benefit of Lots 1-4. The project fronts West Chase Avenue, a publicly maintained road. The 26,613 square foot lot has four existing single-family homes that will remain. The existing zoning is RM-6000 (residential multi-family). Proposing three parking spaces for each lot, a separate water service for each lot, widening the existing driveway to 22 feet, and replacing the existing driveway apron. No grading or landscaping is proposed.

PARTNER
Engineering and Science, Inc.

Physical Elements Report

BUILDING CONDITIONS

REPORT (BCR)

W CHASE FOUR ON ONE
653, 657, 661, and 669 W Chase Avenue
El Cajon, California 92020
July 31, 2024
Partner Project No.: 24-447531.1
Prepared for

DANIEL CARUSO
El Cajon, CA
July 31, 2024
Daniel Caruso
661 W. Chase Avenue
El Cajon, CA 92020
Subject: Building Conditions Report

PARTNER
Engineering and Science, Inc.
653, 657, 661 , and 669 W. Chase Avenue
El Cajon, California 92020
Partner Project No. 24-447531.1
Dear Dan Caruso:

Partner Engineering and Science, Inc. (Partner) is pleased to provide the results of the Building Conditions Report (BCR) report of the W. Chase Four on One property at the above mentioned addresses (the "subject property"). This assessment was performed with the intent to satisfy the requirement for a Building Condition Report by the City of El Cajon as part of the application process for conversion of the property to condominium properties.

The purpose of this Building Conditions Report is to describe the primary systems and components of the subject property, to identify conspicuous defects or material deferred maintenance, and to present an opinion of costs to remedy any observed deficiencies . In addition, this report identifies systems or components that are anticipated to reach the end of their expected useful life during the specified evaluation term and includes an opinion of cost for future capital replacements, if applicable. Per City of El Cajon, the purpose and intent of this Report is to provide prospective buyers with an analysis of how the building does or does not comply with current codes, includes a list of proposed improvements if applicable , and list of integral building components with a useful life of 5 years or less, if applicable.

Findings are presented in the attached Building Conditions Report.

We appreciate the opportunity to provide these assessment services. If you have any questions concerning this report, or if we can assist you in any other matter, please contact Mark Lambson at (619) 925-9672 or email [email protected].

Sincerely,
DRAFT
Mark Lambson
Principal
DRAFT
Joe Derhake, PE
President
2154 Torrance Bou levard , Suite 200, Torrance, California 90501  Phone 800-4 19-4923  Fax 866-928-7418

EXECUTIVE SUMMARY
Property Description
Site Name W. Chase Four on One
Address 653, 657, 661, and 669 W. Chase Avenue
Project Type • - ,- - ..... - ·- -
Rentable Living
Area
Year Built
Weather
Condition
Number Units
Accessed
Number of
Buildings
Parcel Number
and Site Area
Assessment Date
653 residence: 990 SF (approximate) single level three
bedroom one bathroom with surface parking driveway
657 residence: 800 SF (approximate) single level two bedroom two bathroom with surface parking
661 residence: 1,300 SF (approximate) single level three bedroom two bathroom with two car garage
669 residence: 1,300 SF (approximate) single level three bedroom two bathroom with two car garage and surface parking driveway
Total buildin area rovided b ownershi .
653 residence: 1950s construction (date not reported)
657 residence: 2010 construction, converted to ADU in 2021 661 residence: 1974 reported
669 residence: 1974 reported
Year built re orted b ownershi
75°F, Sunny, clear
All four units accessed, no access limitations
Four single family residential buildings, single story construction APN 492-410-2500
Assessment Time , , 1
Construction
Types
Wood frame construction, raised foundation and slab on grade construction
The Subject Property development consists of four detached residential units. There is one residence with three bedrooms and one bathroom, two residences with three bedrooms and two bathrooms, and one residence with two bedrooms and two bathrooms.

The four residences were developed on a 0.6 acre generally rectangular parcel of land accessed from the south side of W. Chase Avenue. The parcel is situated with a driveway directly fronting the 653 residence and a separate driveway providing access to 657, 661, and 669 W. Chase residences. Each residence is single level and driveways provide parking for at least two vehicles at each home.

Building Condition Report
Project No.: 24-44 7531.1
July 31, 2024
Page i

PARTNER
Each single family residence is rectangular in shape and all are constructed with slab on grade except the 653 residence is built on a raised foundation consisting of perimeter concrete cast in place stem walls. The dates of construction were reported by ownership .

Each structure is wood framed with a pitched roof deck supported by plywood sheathing and asphalt shingles. Exterior finishes include painted stucco with painted wood trim, cementitious siding, and brick veneer .

Domestic hot water is provided by individual tank type water heaters. The HVAC heating and cooling systems for each residence are comprised of split systems with interior thermostat control.

Each of the four residences are individually metered for electricity and three of the residences are provided with natural gas service. A single domestic meter is located in below grade vault at the municipal sidewalk and units are sub-metered. The bank of three gas meters is located on the west side of the 653 residence.

Fire and life safety includes hard wired or battery operated smoke and carbon monoxide detectors.

The property also contains concrete pedestrian walks at each unit entrance landing and concrete flatwork at covered patio areas at each residence. Landscape areas are provided at the areas surrounding each residence. Limited sprinklers are provided for lawn areas. The property is fully fenced with wooden fencing at the west, east, and south perimeters . Additional wood fencing separates each residence. A carport structure is located adjacent to the 657 residential.

The Subject Property is zoned RM-6000, defined as multifamily residential according to the City of El Cajon GIS zoning application.

The subject buildings appeared to be developed in accordance with the designated zoning.

Document review:
• City of El Cajon zoning application at https://cityofelcajon.maps.arcgis.com/ • www.sangis.org parcel information system
• Federal Emergency Management Flood Map
Building Condition Report
Project No.: 24-447531 .1
July 31, 2024
Page ii

PARTNER

OVERALL SITE CONDITION
Partner Engineering and Science, Inc. (Partner) evaluates the subject property to be in good overall condition for its age and usage.

The subject buildings appear to have been constructed in accordance with the governing codes and standard methods and principles for construction at the times of construction .

Building Condition Report
Project No.: 24-447531.1
July 31 , 2024
Page iii

PARTNER
Immediate Repair Needs Items
Deferred maintenance items and physical deficiencies that are considered significant are included as immediate repairs. No significant items requiring immediate repair were noted during the site visit, See table 1 below:

TABLE 1
Immediate Repair and Deferred Term Total
Expenditures Immediate
The patio slab at the 653 residence is badly Immediate $2500 cracked and should be replaced
Repair needed to the covered patio at the 661 Immediate $1000 residence. Wood rot was observed at the
underside of the plywood decking .

Allow for landscape clean up and Immediate $1500
refurbishment.

One window at the front bedroom of the 669 Immediate $500 residence appeared to have seals
compromised and was not clear view through
the window . Replacement of glazing is
recommended
Bedroom windows did not all meet eqress Immediate Budget requirements by width or height above finish
floor depending on location . Windows must
not be higher than 44" above finish floor and
must be at least 20" wide by 24" high in the
open position . A plan to comply with the
egress requirements should be submitted as
part of condominium conversion per city
requirements
Smoke detectors were missing from several Immediate $250 locations . Ensure all bedrooms and hallways
have a device installed.

Replacement Needs Items
For purposes of this Report, the reserve term per typical city requirements for condominium conversion, is considered to be a period of five years. Partner did not identify items of significance with respect to components which have an estimated useful life of less than five years at the subject property. No significant replacement reserves are anticipated to be required, See table 2 below:

TABLE 2
Replacement Needs
Allow for 40 gallon water heater replacements at
the 653 and 669 residences based on EUL.

Zinsco brand panels were observed and have a
history of failing to trip in an overcurrent
condition and considered a latent fire hazard .

Building Condition Report
Project No.: 24-447531.1
July 31 , 2024
Page iv
I
Five Year Term
I
Total
Reserves
Qty 2 $750 each
Qty 2 $1 ,500 each

PARTNER
Replacement of the main panels is
recommended at the meters at the 661 and 669
residences due to age and history of issues with
the manufacturer as a safety precaution.

Additional remedial work is limited in extent and may be characterized as that typically associated with general maintenance and repair when undertaken on a routine periodic basis, including pest control, landscaping maintenance , and removing trash from the walks , drives and parking areas, as well as general housekeeping of the interiors and appliance repairs.

Partner can make no comment on the marketability of the subject property. Any qualifications and limitations in place for the Building Conditions Report as provided by Partner is applicable to the summary comments mentioned above.

Building Cond ition Report
Project No.: 24-44 7531.1
July 31 , 2024
Page v

PARTNER
Table of Contents
EXECUTIVE SUMMARY ..................................................................................................................... I PROPERTY DESCRIPTION .................. ....... .................. .......... ................ ...... ....... ................. ............... .. I OVERALL SITE CONDITION ............................... .................. ............. .......... .......... .......... ..... ........ ........ III

1.0 INTRODUCTION OF SCOPE ................................................................................................. 1

1.1 PURPOSE AND SCOPE .................. ......... ................ ............ ....... ................. ................... .......... 1

1.2 CLIENT RELIANCE .............. ............... ........................................................ .................... ........... 1

1.3 ASSET .................. ....................... ......... ...... .............................................. ........................ ........ l

1.4 QUALIFIERS .......... ........... ........... ...................... ............. .................. ............... .......................... 2

1.5 STATEMENT OF LIMITATIONS ............................................................ ........................... ............ 2

1.5.1 Limiting Conditions ................................................................................... ............. .......... 3

1.5.2 ADA Exclusion ................................. ............ .............................................. ...................... 3

1.6 DEVIATION TO ASTM E2018-08 GUIDELINES ...................................... · ......... ................... ...... . 4

2.0 DOCUMENT REVIEW AND DATA COLLECTION .............................................................. 5 2 .1 PERSONNEL INTERVIEWED/CONTACT ........ .......... ................... ....... .......... ..... ...................... .... 5

2.2 LIMITED NATURAL HAZARDS .......................... .................................................. ................ ....... 5

2.3 VENDORS/SERVICE PROVIDERS ....................................... ......... ...... ....................................... 5

2.4 UTILITIES SERVICE PROVIDERS ................................. .................... ..... ..... ...... ............ ......... .... 6

3.0 SITE/TRACT IMPROVEMENTS ............................................................................................. 7

3.1 TOPOGRAPHY AND STORM DRAINAGE ......................................................................... ........... 7 3 .2 LANDSCAPING AND IRRIGATION ........... ............................................... ............ ............... ......... 7 3 .3 MUNICIPAL AND COMMON AREA WALKWAYS, STEPS AND RAMPS ............ ............ ............. .... 7

3.3 .1 Municipal .................................... .......................................................................... ............. 7

3.3.2 Common Area Walkways .......... .................. .................................................................... 7

3.4 PARKING, PAVING AND CURBING .................. ................................................................. ......... 8

3.5 BARRIER WALLS, GATES, FENCES, AND RETAINING WALLS ................................. .................. 8

3.6 EXTERIOR LIGHTS .......................................................................................................... ......... 9

3.7 SITE AND BUILDING SIGNAGE ...................... ..................... .............. ........... ....... ............ ........ .. 9 3 .8 REFUSE TRANSFER AREA(S) .................... ...................................... ....................... ....... ........... 9 3 .9 OTHER SITE IMPROVEMENTS ............................. ........................ ...................... ....................... 9

4.0 BUILDING ENVELOPE ......................................................................................................... 10

4.1 FOUNDATIONS .............. ..................... ......................................... ............. .............................. 10 4 .2 SUPERSTRUCTURE ...................... ....... ....................... ...................... ......... ...... ....................... 10

4.3 ROOF STRUCTURES AND SURFACING ....... ....... ..................................................................... 11

4.3.1 Structural ................................... ..... ...... ......... .............................................................. ... 11

4.3.2 Surfacing and Drainage ............ ................. .................................................................... 11

4.3.3 Roof Mounted Items or Structures ....................... .................................. ...... ........... ..... 11

4.4 EXTERIOR WALLS, WINDOWS, AND DOORS ..... ..................................................................... 12

4.4.1 Exterior Walls ......... ........ ........... ...... ........................ ................ ............ ............... ............ 12 4 .4.2 Windows ................ ..... .......... ........... .................. ...................... ........................... ....... ..... 12 4 .4.3 Doors ......... ............ ............................ ......... ............ ......... ...... ............... ................ ........... 13

4.5 EXTERIOR STAIRS, BALCONIES AND ELEVATED WALKWAYS ................................... ....... ...... 13

4.5 .1 Stairs and Landings ........................ .............................. ........ .............. ......... ........... ....... 13

5.0 BUILDING MECHANICAL AND ELECTRICAL SYSTEMS .............................................. 15 Building Condition Report
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July 31, 2024
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PARTNER

5.1 BUILDING HEATING, VENTILATION, AND AIR-CONDITIONING ............ ... .................................. 15

5.2 BUILDING PLUMBING, DOMESTIC HOT WATER AND SEWER SYSTEMS ............ ... .... ... ........... 15

5.3 BUILDING GAS DISTRIBUTION ....................................................... ........................ ...... ........... 16

5.4 BUILDING POWER AND SIGNAL. .................................................... ...................... ....... .... ........ 16

5.5 BUILDING ELEVATORS AND CONVEYING SYSTEMS .................... .... ....................................... 17

5.6 FIRE PROTECTION ................................................................................................................. 17

6.0 BUILDING INTERIOR ELEMENTS AND FINISHES ......................................................... 18

6.1 COMMON AREAS ..... ......................... ..................................................................................... 18

6.1.1 Lobbies, Corridors, and Stairwells ................................................................................ 18

6.1.2 Amenities ............................................................................................... ......................... 18

6.2 TENANT AMENITIES AND FINISHES ........ ..... .......... ....... .......... ....... ....... ............. .... ................ . 18

6.2.1 Room Mix ........................................................................................................................ 18

6.2.2 Viewed Spaces ....................................................................... ....................................... 18

6.2.3 Appliances and Other Amenities ............................ ...................................................... 18

6.2.4 Floor Coverings ........................................................... ...................... ............................. 19

6.2 .5 Ceilings/Walls ................................................................................................................. 19

7.0 ADA COMPLIANCE .............................................................................................................. 20

8.0 SIGNATURES OF PARTICIPATING PROFESSIONALS ................................................. 21

APPENDICES

SITE LOCATION MAP

SITE PLAN

SUPPORTING DOCUMENTATION
APPENDIX A: PHOTOGRAPHS
Building Condition Report
Project No.: 24-447531 .1
July 31, 2024
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PARTNER

1.0 INTRODUCTION OF SCOPE

1.1 PURPOSE AND SCOPE
The purpose of this Building Condition Report is to assist the Client, in evaluation of the physical aspects of the subject property, and in meeting one of the requirements of the local agency with jurisdiction (City of El Cajon) for purposes of condominium conversion. For this assessment, Partner has followed the guidelines set forth by ASTM E2018 for Property Condition Assessment and the City of El Cajon Condo Conversion Instruction guidelines governing residential Condominium Conversions.

This Report is intended to be utilized by the agency with jurisdiction for evaluating the general overall physical condition of the property for the purposes of meeting the agency requirement for condominium conversion . It is not intended to be used by an owner or borrower, or any other party for the purpose of evaluating specific building components and systems, nor is it intended to be used as an instrument in the purchase negotiations related to the acquisition of real property. The scope and purpose of such a report differs significantly, and may be considerably more detailed and tailored to the specific requirements of a client or possibly a lender. This report was not prepared to the level of detail typically ascribed to engineering reports in the marketplace for real estate acquisitions.

1.2 CLIENT RELIANCE
This assessment was undertaken at the request of the property owner, utilizing methods and procedures consistent with good commercial or customary practices designed to conform to acceptable industry standards. The independent conclusions represent Partner's best professional judgment based upon existing conditions and the information and data available to us during the course of this assignment. Factual information regarding operations and conditions provided by the owner has been assumed to be correct and complete.

1.3 ASSET
Site Name
Address
Project Type
Assessment Date
Assessment Time
Weather Condition
Surveyed By
Building Condition Report
Project No. 23-426899 .1
November 14, 2023

W. Chase Four on One
653, 657, 661, and 669 W. Chase
Four single family residential units on one parcel intended for condominium conversion
9:00AM
75°F Sunn and clear
Tim Zuzack , Partner Associate, EIT

PARTNER

1.4 . QUALIFIERS
The following definitions and terminology are used in this report regarding the physical condition of the project, and the estimated life expectancies/age of the components and systems.

I
I Designation i Description
Excellent New or like new condition.

Good Well maintained, may exceed expected useful life. No immediate or potential concerns.

Satisfactory, some signs of wear and possible minor immediate repairs Average not considered capital expense . Component/s condition consistent with their expected useful life.

Fair Marginally satisfactory . Some immediate repairs required.

Components/Systems at or near the end of their useful life.

Poor Immediate concerns, major replacements, and/or significant attention required .

Unless stated otherwise in this report, the systems reviewed are considered to be in good condition and their performance appeared to be satisfactory at the time of the site visit.

1.5 STATEM ENT OF LIMITATIONS
The Building Conditions Report and assessment performed by Partner is based upon, but not limited to, the guidelines set forth by ASTM for Property Condition Assessment. This Building Conditions Report is similar in nature and also includes requirements set by the City of El Cajon for Condominium Conversion. Partner's review of the subject property consisted of a visual assessment of the site, the structures and the accessible interior spaces . Any technical analyses made are based on the appearance of the improvements at the time of this assessment. No destructive or invasive testing or testing of equipment was included in the scope of this review.

The recommendations and conclusions presented as a result of this assessment apply strictly to the time the assessment was performed. Any available documentation that has been provided is analyzed using current accepted assessment techniques. Partner believes that the inferences made are reasonably representative of the property. No warranty is expressed or implied, except that the services rendered have been performed in accordance with generally accepted Assessment practices applicable at the time and location of the study.

Partner's assessments and opinions expressed within this report are not representations regarding either the design integrity or the structural soundness of the project.

Building Condition Report
Project No.: 24-44 7531.1
July 31, 2024 PARTNER

Local, state and federal regulations, and codes can change significantly over time from when the subject property was developed and the subject buildings were constructed. The subject property and subject buildings may not meet all current regulations, and code requirements put forth on a local, state, or federal level.

1.5.1 Limiting Conditions
Information for the subject property is obtained from but is not limited to the following sources: a site assessment, local government agency records review, interviews with the site contact and client, tenant or property owner, and client­ provided documents. The site assessment of the subject property, building, and building systems is limited to visual observations. No equipment testing or sampling is performed.

This Report is based on the judgment of the physical condition of the components, their ages and their expected useful life (EUL). The conclusions presented are based upon the evaluator's professional judgment. The actual performance of individual components may vary from a reasonably expected standard and will be affected by conditions where the component is installed and/or circumstances that occur after the date of the evaluation .

The Report does not identify minor, inexpensive repairs or maintenance items, which are clearly part of the property owner's current operating budget. The report does identify infrequently occurring maintenance items of significant cost, such as exterior painting, roofing, deferred maintenance and repairs and replacements that normally involve major expense or outside contracting .

Please be advised that roof observations and related comments are not to be interpreted as a full and comprehensive roof survey and should not be interpreted to mean the roofs are free of leaks. Should a comprehensive report on the condition of the system be required, the services of a qualified roofing consultant should be considered .

1.5.2 ADA Exclusion
Because of the complexities of the ADA, it is understood that Partner, and their affiliates , will not be held liable for any complaints or actions brought against the subject property, nor can it be held responsible for determining whether deficiency corrections are "readily achievable" within the owner's means to support the associated expenses .

An extensive, Tier Ill - Full Accessibility Survey, which would identify detailed items at the facility that are not in compliance with ADA regulations, was not conducted, which would include measurements. Additionally, Partner did not review nor assess local code requirements, which in some instances, may conflict with or supersede ADA requirements as part of the scope of work.

Building Condition Report
Project No.: 24-447531.1
July 31, 2024 PARTNER

It is recognized that the nature of many accessibility improvements may require services that are beyond the scope of the ASTM guidelines and this Building Condition Report, such as the preparation of design studies, exploratory discovery, detailed measurements, and space planning or alteration studies to determine the feasibility, efficacy, and appropriate cost to implement such improvements.

Partner recommends that any specific questions about compliance with ADA be directed to an attorney in conjunction with design or construction professionals.

Partner's assessment with respect to ADA compliance is cursory and limited.

1.6 DEVIATION TO ASTM E2018-08 GUIDELINES
Deviations from ASTM E2018-08 guidelines are required to be discussed in a Property Condition Assessment (PCA) Report. The following is a list of the deviations from, and additions to ASTM E2018-08, which is a basis for this report. • The threshold value established by Partner is $500. This is less than the threshold value listed in the ASTM E2018-08 Property Condition Assessment guidelines of $3,000. The lower threshold value provided in this report allows for a more comprehensive analysis of the property. Costs that are lower than Partner's threshold value are not included in the report and are typically associated with items of routine maintenance, except for significant deferred maintenance items.

Items that are considered a threat or danger to health and safety are included in the immediate repair cost estimate table regardless of the cost threshold. • This Building Condition Report includes flood zone, wind, and seismic zone information.
• Short term items requiring repair or replacement are incorporated in the Immediate Repairs and Deferred Maintenance Cost Estimate - Table 1, if applicable. • Site and building components are identified and work items included in the Replacement Reserves Table 2 if they are anticipated to require replacement within 5 years, if applicable.

Building Cond ition Report
Project No.: 24-447531. 1
July 31, 2024

PARTNER

2.0 DOCUMENT REVIEW AND DATA COLLECTION

2.1 PERSONNEL INTERVIEWED/CONTACT
In the process of conducting the on-site observation and follow-up telephone calls, the following personnel from the subject facility were interviewed. Information obtained from these entities is incorporated into the appropriate sections of this report.
~lffi®ttbti~i •1ilfi31Mii,i•f4h§i,Mi~
Mr. Dan Caruso, owner 352-789-1010

2.2 LIMITED NATURAL HAZARDS
Seismic
Zone
Limited Natural Hazards
Zone: 4 - an area
with high probability
of damaging ground
motion
The information derived in this section is
based on the Uniform Building Codes 1997
Volume 2 Table 16.2. Properties located in
Uniform Building Code (UBC) seismic zones 3
and 4 are evaluated for seismic risk by
observing whether the structures on the
ert exhibit certain ro ert risk factors.

Flood Zone • - FEMA Map ID: Effective Date:

Wind Zone
06073C1663G May16,2012
A review of the Flood Insurance Rate Map, published by the Federal Emergency Management Agency was performed. (www.fema.gov) The subject property is located in an area (Zone X unshaded) determined to be outside the 0.2% annual chance floodplain.

Zone: 1 Hurricane Susceptible Area D Yes/~ No
A review of the Wind Map within the United States, published by the Federal Emergency Management Agency was performed.
www.fema . ov
Partner has made no detailed investigation into the presence of the Natural Hazards listed above. Natural hazards may vary by location.

2.3 VENDORS/SERVICE PROVIDERS
Trade
HVAC
Roofing
Plumbing
Landscaping
Electrician
Building Condition Report
Project No.: 24-447531 .1
July 31, 2024

I
I
I
Company Telephone No.

As needed Not Applicable
As needed Not applicable
As needed Not Applicable
Not Provided Unknown
As needed Not applicable

PARTNER
No vendo rs or service providers reported for the residences. Contractor services are reportedly on an as-needed basis should a trade be required . General maintenance is provided by a landscape service as needed.

2.4 UTILITIES S ERVICE PROVIDERS
- -
Utility
Water
Sanitary Sewer
Storm Water
Electric
Gas
Building Condition Report
Project No.: 24-447531 .1
July 31 , 2024

I
- - - - - - -- ---- - -- - - - - -
Provider
Helix Water District
City of El Cajon
City of El Cajon
San Diego Gas & Electric (SDGE)
SDGE

PARTNER

3.0 SITE/TRACT IMPROVEMENTS

3.1 TOPOGRAPHY AND STORM DRAINAGE
The topography of the general area can be characterized as relatively level.

The subject building and site pitches downward to the north of the property.

Survey Condition and Analysis
The site's pitch/slope does not appear to pose any adverse conditions and no ponding areas were observed. The same applies to the topography of the general adjacent lands, which also do not appear to pose any significant problems. Good drainage characteristics are provided, and significant erosion was not observed. Routine maintenance is anticipated.

3.2 LANDSCAPING AND IRRIGATION
Limited trees, a variety of shrubs and plants are provided at the subject property and lawn areas. The landscaping is irrigated via manually operated sprinkler valves with plastic piping below grade observed at the 669 residence.

Survey Condition and Analysis
Landscaping appeared in fair to poor overall condition. The area along the right of way was not maintained. Replanting areas and use of irrigation is recommended to revitalize the landscape areas and included in Table 1.

Routine maintenance is anticipated during the term.

3.3 MUNICIPAL AND COMMON AREA WALKWAYS, STEPS AND RAMPS

3.3.1 3.3.2
Municipal
Municipal sidewalk is provided along the street frontage at W. Chase Avenue with two curb cuts and drive aprons for site access.

Common Area Walkways
Walkways are located at each residence entrance connecting to driveways.

Common walkways are not present.

Survey Condition and Analysis
The cast in place concrete walkways at each residence were observed to be in good overall condition with minor cracking noted. Partner did not observe trip hazard conditions and no vertically displaced or significant cracked sections. Routine maintenance is anticipated during the evaluation term.

Building Condition Report
Project No.: 24-447531 .1
July 31, 2024 PARTNER

3.4 PARKING, PAVING AND CURBING
A gravel driveway is located at the front of the 657 residence and asphalt pavement is utilized at the shared drive lane along the west side of the property. An asphalt paved driveway serves as parking at the 653 residence . Concrete driveways are located at the 661 and 669 residences fronting each garage.

Each residence is provided with parking areas for at least two vehicles. The 661 and 669 residences each have a two-car garage. The single car garage door at the 653 residence has been permanently closed and the space converted to a bedroom.

Street parking is also available.

Concrete flatwork is provided at the backyard areas serving as patios.

Curbing along the adjacent sidewalk/public street is constructed of concrete with integral curb and gutter.

Survey Condition and Analysis
The driveway and parking area as well as patio areas were in good to fair condition with some linear cracking noted. The patio at the backyard of the 653 residence is significantly cracked and recommended to be replaced.

An opinion of cost is included in Table 1.

The asphalt drive lane along the west side was recently paved and appeared in good condition. Routine maintenance is anticipated during the next five years.

Per municipal code, parking is typically required in condo conversion at the rate of 1.25 to 1.5 spaces . Parking is provided beyond the minimum requirement, which satisfies the municipal code for parking for condominium conversion.

3.5 BARRIER WALLS, GATES, FENCES, AND RETAINING WALLS
Site fencing consists of wood fencing with swinging wood gates accessing the enclosed area between 657 and 661 residences. The parcel perimeter is bordered by wood site fencing on the south, east and west sides. A portion of the west side is bordered by chain link fencing .

Survey Condition and Analysis
Fencing and the gates were observed to be in good overall condition.

Routine maintenance including minor repair is anticipated during the next five-year evaluation term.

Building Cond ition Report
Project No.: 24-447531.1
July 31, 2024 PARTNER

3.6 EXTERIOR LIGHTS
Site lighting consists of surface-mounted fixtures on the subject buildings near the entry doors and adjacent municipal street light standards at the rig ht of way.

Survey Condition and Analysis
The fixtures appear to be in good condition overall. Routine maintenance is anticipated.

3. 7 SITE AND BUILDING SIGNAGE
Property identification signage was not observed. Each home is provided with house numbers affixed on the buildings near the entrances facing the right of way or on fencing adjacent to the entrances. Mail enclosures were mounted to the site wall at the gravel driveway on the east side of the property.

Survey Condition and Analysis
Individual home address signage was observed to be in fair overall condition and considered to be serviceable through the evaluation term.

The numbers were not clearly identified and should be repainted with contrasting color paint as a maintenance item.

3.8 REFUSE TRANSFER AREA(S)
The subject property driveways are utilized for storing trash receptacles. A service provider, Waste Management, provides residences with solid waste, recyclable, and organic containers.

Survey Condition and Analysis
No reported or observed deficiencies were noted. Refuse container replacement is the responsibility of the vendor. Trash enclosures are not provided and should they be required, they shall meet the requirements of storm water, building, and fire departments.

3.9 OTHER SITE IMPROVEMENTS
A prefabricated carport structure for recreational vehicle storage was located on the north side of the 657 residence with a gravel ground cover.

Survey Condition and Analysis
The carport structure appeared in good condition. Routine maintenance is anticipated during the term.

Building Condition Report
Project No.: 24-447531 .1
July 31, 2024 PARTNER

4.0 BUILDING ENVELOPE

4.1 FOUNDATIONS
Partner was not provided with construction plans. Based on observation, the single family residence at 653 W Chase is constructed with raised foundation systems consisting of perimeter stem walls and interior wood posts supported by concrete footings. Crawl space access was not provided to observe the under building areas. The structure was built in the 1950s and should be noted it likely does not meet current codes for frame to foundation connections .

The 657, 661, and 669 residences each have concrete slab on grade and presumed reinforced shallow foundation systems monolithically placed during construction in 1974 and 2010.

Survey Condition and Analysis
The perimeter of the buildings did not show any significant cracking or concerns and the crawl area beneath the 653 Building appeared clean and dry at the rear vent screening.

No significant cracking to indicate foundation problems were observed at the residential single story buildings .

Observations of the exterior walls revealed no significant signs of cracking or movement that would indicate excessive settlement or an improperly installed foundation system.

Foundation systems are performing as intended and anticipated to do so for the life of the structures.

4.2 SUPERSTRUCTURE
Roof framing consists of wood decking over lumber framing and open web wood trusses were observed at the garages where open structure was visible at the 661 and 669 residences. Interior ceiling finishes were in place at all ceilings and no areas were open to the structural members within the buildings . Wall framing consists of conventional wood 2x materials.

There are no common walls present. Each residence is a single family detached structure .

Survey Condition and Analysis
The building designs were presumed based on applicable codes at the times of construction . The structures appeared in good condition. No capital expenditures are anticipated during the term as the structures show no significant stress at the interior or exterior to indicate structural problems .

Building Condition Report
Project No.: 24-447531 .1
July 31, 2024

PARTNER-

4.3 Roof Structures and Surfacing

4.3.1 Structural
Roof framing consists of plywood over dimensional lumber framing or wood trusses, depending on the structure and area.

Survey Condition and Analysis
There were no significant observed or reported deficiencies noted.

No problematic fire retardant treated plywood was reportedly used during renovations and construction by ownership or observed at the buildings.

Fire Retardant Treated Plywood (FRTP) is a plywood product that has been treated with a fire retardant material and not designed for structural application.

4.3.2 Surfacing and Drainage
The building roofs are each finished with asphalt shingle roofs.

Observations of the roofs of the single family residences was made from the ground level.

Gutters and downspouts are provided at select facades discharging to grade.

Survey Condition and Analysis
The roofing appeared in good condition and reportedly installed in recent years. The 653 Building roof was reportedly installed in 2023 . No significant issues were identified. No roof leaks were reported or observed at the interior ceilings.

Partner anticipates that no roof replacement will be required within five years and will remain serviceable through the term with routine maintenance such as re-caulking penetration flashing. The roofing should have an estimated useful life of 20 to 25 years.

Gutters were observed in good condition and should be periodically cleaned as a maintenance item.

4.3.3 Roof Mounted Items or Structures
The building roofs do not have any equipment mounted .

Building Condition Report
Project No.: 24-447531.1
July 31, 2024

PARTNER

4.4 EXTERIOR WALLS, WINDOWS, AND DOORS

4.4.1 Exterior Walls
Exterior surfaces of the residential building are primarily finished with integral three part cement-based stucco and painted. Painted wood trim is also present at eaves and fascia. The 657 residence has cementitious siding on the building exterior . The 669 residence has accent areas such as adjacent to the main entrance finished with brick. Soffits are enclosed and finished with stucco or open to eaves as painted wood.

Survey Condition and Analysis
The exterior stucco, brick, and cementitious siding observed to be in good overall condition. The exterior finishes should remain serviceable through the five year evaluation term, beyond which repainting may be needed.

Routine maintenance is anticipated during the next five years.

4.4.2 Windows
Windows consist of vinyl dual glazed retrofit or new construction units at each building. Window types consist of sliding and single hung styles.

Grids are between the window panes are provided at the 669 residence.

Survey Condition and Analysis
The windows appeared in good overall condition and were relatively early in service life. One window at the front bedroom of the 669 residence appeared to have seals compromised and was not clear view through the window. Replacement of glazing is recommended. An opinion of cost is included in Table 1.

Measurements of each bedroom window were taken to determine if egress requirements are met, including sill height from finish floor and opening sizes, see bedroom measurements below:

Partner noted the following egress and measurements:
653 residence:

Bedroom 1 (garage conversion): 24" above finish floor (AFF), open position 18" high by 41 .5" wide
Bedroom 2: 29" AFF, open position 22" high by 33" wide
Bedroom 3: 29" AFF, open position 22" high by 33" wide
657 residence:

Bedroom 1: 45" AFF, open position 32" wide by 34" high
Bedroom 2: 45" AFF, 32" wide by 34" high
Building Condition Report
Project No.: 24-447531.1
July 31 , 2024 PARTNER

661 residence:

Bedroom 1: 25" AFF, open position 19" wide by 54" high
Bedroom 2: 36" AFF, open position 26.5" wide by 44.5" high Bedroom 3: 36" AFF, open position 26.5" wide by 44.5" high 669 residence:

Bedroom 1: 25" AFF, open position 19" wide by 54" high
Bedroom 2: 36" AFF, open position 26.5" wide by 44.5" high Bedroom 3: 36" AFF, open position 26.5" wide by 44.5" high The windows are considered to have a long effective useful life well beyond the evaluation term and appeared of good quality and in good condition.

The windows and several doors were installed in recent years.

Replacements are not considered needed during the next five years .

Routine maintenance is anticipated .

The above windows did not all meet eqress requirements. Windows must not be higher than 44" above finish floor and must be at least 20" wide by 24" high in the open position. A plan to comply with the egress requirements should be submitted as part of condominium conversion per city requirements.

4.4.3 Doors
Entry doors include painted raised panel fiberglass , metal, or wood set in wood framing. Side doors are swinging French doors or sliding glass doors to patios. Hardware at main entrance doors is a knob or lever-keyed lock with separate deadbolt. Interior doors are typically painted hollow core wood with wood door frames and trim.

The garage doors at the 661 and 669 residences are sectional metal doors.

Both have electric overhead openers. An enclosed attached carport at the 657 residence also has a sectional metal door manually operated .

SuNey Condition and Analysis
Entry doors, garage doors and operators, patio doors and sliding glass doors are in good overall condition, and should not require replacement during the term. Routine maintenance is anticipated.

4.5 Exterior Stairs, Balconies and Elevated Walkways

4.5.1 Stairs and Landings
Exterior stairs are not present, unit entrances are typically elevated by a concrete step above grade.

Building Condition Report
Project No.: 24-447531 .1
July 31, 2024

PARTNER
Survey Condition and Analysis
The steps and landings where provided appeared in overall good condition.

Routine maintenance is anticipated during the five year term.

4.5.2 Patios and Balconies
The units each have patios at grade accessed from sliding glass doors .

Patios are concrete slabs on grade and overhead wood framed patio covers are provided.

Survey Condition and Analysis
The patios were observed to be in good to fair overall condition except at the 653 building . The patio slab was badly cracked and should be replaced.

An opinion of cost is included in Table 1. The patio cover at the 661 residence was observed to be damaged in a local area. Repair is needed to the covered patio at the 661 residence. Wood rot was observed at the underside of the plywood decking. Generally, routine maintenance activity during the term.

4.5.3 Elevated Walkways
The buildings do not contain elevated walkways .

Building Condition Report
Project No.: 24-447531.1
July 31, 2024

PARTNER

5.0 BUILDING MECHANICAL AND ELECTRICAL SYSTEMS

5.1 BUILDING HEATING, VENTILATION, AND AIR-CONDITIONING Heating and cooling in the 653, 661, and 669 residences is provided by individual split systems. The pad mounted 2.5 ton condenser at the 653 residence was manufactured in 2010 by Payne utilizing R-41 0A refrigerant mated with a fan coil unit on an attic-mounted furnace . The 669 residence has a three ton pad-mounted condenser by Goodman manufactured in 2012 on the west side of the building with a closet mounted furnace and fan coil in the hallway. The 661 residence has a similar Goodman branded 3- ton condenser manufactured in 2012 mated to a closet mounted fan coil and furnace. Ductwork was located in attic spaces with wall mounted registers . Thermostats were typically wall mounted in each residence.

The 657 residence utilizes a ductless mini split system by Emerson with outdoor condenser and wall mounted ductless fan coil at the living space.

Bedrooms are not provided with heating/cooling directly. The unit is controlled by a remote control, rated at 1.5 tons cooling and manufactured in 2021.

Survey Condition and Analysis
The HVAC split system condensing units and furnace units were operational and appeared in good to fair condition. Based on estimated useful life and observed condition, routine maintenance is anticipated during the next five years.

5.2 BUILDING PLUMBING, DOMESTIC HOT WATER AND SEWER SYSTEMS The Helix Water District provides the cold water supply to the Subject Property . The units are each provided with a shutoff valve on the exteriors and a submeter device. The property is provided a single meter located in a vault at the municipal sidewalk.

Hot and cold water piping was observed to be copper in areas observed and with ABS plastic sanitary drain piping. Plastic ABS sanitary piping was observed beneath sinks at the wall intersections and at cleanouts at grade at building exteriors.

Water heating is provided by a natural gas tank type water heater at each building in the garages at the 657, 661, and 669 residences and laundry room at the 653 residence. The 653 residence' gas-fired water heater was manufactured in 2006 rated at 40 gallons by General Electric. The 40 gallon gas-fired water heater at the 669 residence was by Bradford White manufactured in the mid 2000s. The gas water heater at the 661 residence was manufactured in 2019 and rated at 40 gallons. The hybrid electric water heater at the 657 residence was manufactured in 2021 by Rheem.

Building Condition Report
Project No.: 24-447531 .1
July 31, 2024 PARTNER

Survey Condition and Analysis
Domestic water piping was observed to be in good overall condition and appeared to be copper at all buildings. Sanitary lines were reportedly ABS plastic. No significant replacements are anticipated during the next five years based on observed and reported piping condition.

The water heaters appeared to be in good to fair overall condition. The units can have a life expectancy of 15 years. Based on observed conditions, water heater replacements are anticipated within the next five years at the 653 and 669 residences. An opinion of cost is included in Table

2. The units are each provided seismic bracing as required.

5.3 BUILDING GAS DISTRIBUTION
Natural gas service is supplied via individual gas meters for the gas heating, water heaters, cooking appliances, and laundry dryers at 653, 661, and 669 residences. There are thee gas meters at the west end of the 653 residence with steel piping extending below grade from the meters to the three buildings. The 657 residence is not provided natural gas service.

Survey Condition and Analysis
The gas pressure and quantity were presumed adequate by the utility. Due to hidden conditions, only limited observation of the buildings' gas distribution piping could be achieved. Routine maintenance is anticipated.

5.4 BUILDING POWER AND SIGNAL
Electrical service is provided by San Diego Gas and Electric. The main service is via individual meters and a meter is located on the exterior wall of the 653, 661, and 669 residence. The service did not include a main breaker at the 653 residence . Two service meters were located at the 661 residence, one of which services the 657 residence . Main breakers at the 661 and 669 residences were rated at 125 amps while the 657 residence is provided 100-amp service.

Breaker panels were located in the bedroom closet of the 653 residence, bedroom wall at the 657 residence, and at the meter panels at the 661 and 669 residences. Panels were manufactured by Zinsco, Murray, and Eaton.

Service was from below grade and appeared to be provided at 120/240 volt single phase service.

Ground fault protection was present at the kitchen and bathroom wet locations as required.

The electrical circuits included grounding outlets and a cold water ground bond was observed at the domestic water connections. Interior lighting was primarily by recessed and surface mount LED and incandescent fixtures .

Building Condition Report
Project No.: 24-447531 .1
July 31, 2024 PARTNER

Survey Condition and Analysis
In general, the electrical systems including panels, lighting and wInng systems appear to be in good to fair overall condition and appeared to have been upgraded at the 653 and 657 residences in recent years.

Of note, the Zinsco brand panels have a history of failing to trip in an overcurrent condition and considered a latent fire hazard. Replacement of the main panels is recommended at the meter panels at the 661 and 669 residences due to age and history of issues with the manufacturer as a safety precaution. An opinion of cost is included in Table 2.

5.5 BUILDING ELEVATORS AND CONVEYING SYSTEMS
None provided .

5.6 FIRE PROTECTION
Carbon monoxide detectors are provided in each residence hallways and smoke detectors provided at the bedrooms.

Survey Condition and Analysis
Dwellings are required to have carbon monoxide devices installed outside each sleeping area on each level of a unit as of January 1, 2013 and are provided as required .

Smoke alarms provided are battery operated or hard-wired to the building electrical system with battery backup and are pr.ovided in each bedroom as required, however several locations were missing devices. Installation of missing bedroom smoke detectors are recommended. An opinion of cost is included in Table 1.

Routine maintenance of the smoke detectors and carbon monoxide detectors is anticipated during the next five years.

Building Condition Report
Project No.: 24-447531.1
July 31 , 2024 PARTNER

6.0 BUILDIN G INTERIOR ELEMENTS AND FINISHES

6.1 COMMON AREAS

6.1.1 Lobbies, Corridors, and Stairwells
The buildings do not contain any interior common areas.

6.1.2 Amenities
No interior common areas.

6.2 TENANT AMENITIES AND FINISHES

6.2.1 Room Mix

6.2.2 6.2.3
The unit mix includes four single family residences.

The 653 residence was reportedly 990 SF (approximate) as a three bedroom one bathroom. The 657 residence reportedly is approximately 800 SF as a two bedroom two bathroom. The 661 residence is reportedly a 1,300 SF three bedroom two bathroom . The 669 residence is reportedly also 1,300 SF (approximate) three bedroom two bathroom, same floor plan as the 661 residence.

Total building area provided by ownership
Viewed Spaces
All four residence interiors. were observed during the site visit.

No significant wear issues noted related to the interior finishes and finishes were generally in good condition.

Appliances and Other Amenities
Kitchen appliances provided consist of gas or electric ranges, stainless steel or painted refrigerators, and garbage disposals. The 657, 661, and 669 residence kitchens include dishwashers.

Washers and dryers are located in the garage at each residence and are reportedly tenant-owned.

Appliance brands include General Electric, LG, Frigidaire, and Samsung.

Cabinets consist of painted or stained wood with solid surface countertops or laminate countertops and stone or laminate integral backsplashes at the residence kitchens. Kitchens have under-mount stainless steel sink or overmount porcelain while bathrooms have solid surface countertops and integral cultured marble or Corian type sinks . Bathrooms have ceramic tile or plastic walled surrounds and tiled shower floors or bathtubs.

Building Condition Report
Project No.: 24-447531 .1
July 31, 2024 PARTNER

Survey Condition and Analysis
Appliances are in good condition and are anticipated to remain serviceable during the next five years. No replacements are anticipated to be required based on average expected useful life of the appliances and observed condition .

6.2.4 Floor Coverings
Floor coverings consist of ceramic tile and laminate and engineered hardwood flooring at living areas and carpet or tile in bedroom areas.

Survey Condition and Analysis
Flooring appeared to be in good condition. No observed deficiencies were noted. The provided finish flooring should remain serviceable beyond the five-year evaluation term.

6.2.5 Ceilings/Walls
The interior walls and ceilings appear to be constructed with gypsum board or plaster and finished with smooth texture and painted.

Survey Condition and Analysis
Interior finishes were observed to be in good overall condition . Interior finishes exhibited limited and minor normal wear and use, however, should remain serviceable through the five year evaluation term.

Building Condit ion Report
Project No.: 24-447531 .1
July 31, 2024 PARTNER

7.0 ADA COMPLIANCE
Partner conducted a brief review of compliance with accessibility requirements during the walk-through survey of the units. The units have not been modified for accessibility such as widened doors or grab bars or turning radius at bathrooms. No requirement for accessibility is known for single family residences.

Building Condition Report
Project No.: 24-447531.1
July 31, 2024

PARTNER

8.0 SIGNATURES OF PARTICIPATING PROFESSIONALS
Partner's work was undertaken in a professional manner with the best interests of our client in mind. Our objective was to perform our work with care, exercising the customary skill and competence of consulting professionals in the relevant disciplines. The conclusions presented in this report are professional opinions based solely upon visual observations of the site and vicinity and our interpretation of the provided information and documents reviewed. The opinions and recommendations presented herein apply to existing and reasonably foreseeable site conditions. Partner cannot act as insurers, and no expressed or implied representation or warrant is included or intended in our report, except that our work was performed, within the limits prescribed by our clients, with the customary thoroughness and competence of our profession at the time and place the services were rendered.

The report was prepared in a manner consistent with generally accepted industry practices and standards.

All information is true and correct, to the best of the undersigned's knowledge, and reflects the consultant's best professional opinion and judgment.

Partner Engineering and Science, Inc.

DRAFT
Tim J Zuzack, EIT
Partner Associate
DRAFT.

Joe Derhake, PE
President
Building Condition Report
Project No.: 24-44 7531.1
July 31, 2024

PARTNER

COMPONENT LIFE ANALYSIS
This section provides estimates for the repair items noted within this report.

Cost Evaluation
Estimates are based on construction costs developed by construction resources such as Nlarshall & Swift, RS Means, Partner's Commercial Inspectors' experience with past costs for similar projects, city cost indexes, consulting with local specialty contractors, client provided information, and assumptions regarding future economic conditions. Actual costs may differ from Partner's cost estimates. Actual cost estimates are determined by many factors including but not limited to:
choice and availability of materials, choice and availability of a qualified contractor, regional climate zone, quality of existing materials, site compatibility, and access to the subject property and buildings. Costs are solely based on material replacement and do not account for soft costs.

Immediate Repairs And Defe1Ted Maintenance Cost Estimates Immediate repair items would include, but are not limited to, items that present unsafe conditions or defe1Ted maintenance. See page iv for immediate table 1 and reserve table 2.

APPENDIX A: PHOTOGRAPHS
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FIGURE 1: SITE LOCATION MAP
Project No. <Project Number>
C:

KEY: Subject Site IS]

PARTNER
FIGURE 2: SITE PLAN
Project No. 24-451974.1
KEY:

Subject Site IS]

PARTNER

1. 3.

5. Driveway to W. Chase and view to 653 residence.

Driveway from W. Chase view south to 657, 661,
and 669 residences .

Rear area shared between 657 and 661 residences.

APPENDIX A: SITE PHOTOGRAPHS
Project No. 24-447531.1

2. View west along right of way.

4. View to 657 residence.

6. View of 669 residence on south side of site.

PARTNER

7. Yard at rear of 653 residence.

9. Drive lane view south to 661 and 669 residences.
11 . South side of 669 residence .

APPENDIX A: SITE PHOTOGRAPHS
Project No. 24-447531.1

8. Patio slab at 653 residence.

10. Front entrance on north side of 669 residence.

12. Patio on east end of 669 residence .

PARTNER

13. Site fencing on west side.

15. West side of 657 residence.

17. Covered patio at 661 residence.

APPENDIX A: SITE PHOTOGRAPHS
Project No. 24-447531.1
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16. Garage at 661 residence.

18. Wood rot at patio cover at 661 residence .

PARTNER

19. Prefabricated carport structure at 657 residence.

21. West end of 669 residence.

23. Electric meter at 653 residence.

APPENDIX A: SITE PHOTOGRAPHS
Project No. 24-447531.1

20. Southeast corner of 661 residence

22. Natural gas service meters (Three units have gas
service).

24. Single domestic water meter to the four residences.

PARTNER

25. Electric meter at 669 residence with 125 amp main
breaker.

27. Electric meter at 661 residence serving 657
residence.

29. Domestic water heater at garage of 669 residence.

APPENDIX A: SITE PHOTOGRAPHS
Project No. 24-447531.1

26. Electric meter at 661 residence .

28. Forced air furnace and fan coil within 669 residence .

30. Domestic water heater at laundry room in 653
residence.

PARTNER

31. Forced air furnace in attic of 653 residence .

33. Forced air furnace in closet in 661 residence.

35. Ductless system condenser on exterior of 657
residence.

APPENDIX A: SITE PHOTOGRAPHS
Project No. 24-447531.1

32. Water heater at enclosed carport of 657 residence.

34. Domestic water heater at garage of 661 residence.

36. Ductless split system wall mounted in living space of 657 residence.

PARTNER

37. Domestic water submeter at 661 residence.

39. Breaker panel in bedroom closet in 653 r"esidence.

41. Kitchen in 653 residence.

APPENDIX A: SITE PHOTOGRAPHS
Project No. 24-447531.1

38. Condenser unit at exterior of 653 residence.

40. Breaker panel in 657 residence bedroom wall.

42. Residence 653 bathroom .

PARTNER

43. Permanent closed garage door with converted
bedroom at 653 residence.

45. Kitchen in 669 residence.

47. Bathroom in 669 residence.

APPENDIX A: SITE PHOTOGRAPHS
Project No. 24-447531.1

44. Hallway missing smoke detector at 653 residence.

46. Hallway in 669 residence.

48. Two car garage at 669 residence .

PARTNER

49. Kitchen in 657 residence.

51. Enclosed carport at 657 residence.

53. Bathroom in 661 residence.

APPENDIX A: SITE PHOTOGRAPHS
Project No. 24-447531.1

50. Bathroom in 657 residence.

52. Living space at 661 residence.

54. Garage at 661 residence .

PARTNER
City Council
Agenda Report
Agenda Item 7.

DATE: February 24, 2026
TO: Honorable Mayor and City Councilmembers
FROM: Yazmin Arellano, Director of Development Services SUBJECT: Consideration of Resolutions to Approve the Second Amended and Restated Regional Wastewater Disposal Agreement (SARA) and Administrative Agreement No. 1
RECOMMENDATION:

That the City Council adopts the next Resolutions, in order, to:

Approve the Second Amended and Restated Wastewater Disposal Agreement; and1.

Approve Metropolitan Sewerage System Administrative Agreement No. 1 for unified management of industrial waste discharge pretreatment and enhanced source control.

2. BACKGROUND:

The City of El Cajon is a participating agency in the regional Metropolitan Sewerage System (Metro System), which is owned and operated by the City of San Diego and provides wastewater conveyance, treatment, and disposal services to twelve participating agencies throughout the region. While the City of El Cajon owns and maintains its local sewer collection system, it does not own wastewater treatment facilities and relies on the Metro System to treat and dispose of wastewater generated by its residents and businesses.

The relationship between the City of San Diego and participating agencies is governed by the Regional Wastewater Disposal Agreement, which establishes each agency's treatment capacity rights, cost-sharing structure, and roles in regional system planning and oversight. In 2000, the participating agencies formed the Metro Joint Powers Authority (Metro JPA) to represent their collective interests. The City of El Cajon actively participates in the Metro JPA and maintains representation on its governing board.

In 2021, the Regional Wastewater Disposal Agreement was amended to address evolving regulatory, operational, and infrastructure needs, including coordination with major regional water reuse initiatives such as the Pure Water Program. However, several policy, governance, and cost allocation items were deferred for future resolution. Over the past four years, the City of San Diego and participating agencies, through the Metro JPA, have completed negotiations to resolve those remaining issues and developed the Second Amended and Restated Regional Wastewater Disposal Agreement (SARA), which establishes an updated framework for regional wastewater service, cost allocation, and long-term system coordination. .!!!!_ Valley of opportunity
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The SARA also establishes a process for implementing certain administrative and programmatic matters through separate Administrative Agreements, allowing participating agencies to efficiently address operational changes without reopening the primary agreement.

Administrative Agreement No. 1 addresses the administration of the regional industrial pretreatment program, clarifies roles and responsibilities, and authorizes the City of San Diego to directly bill industrial users for applicable permitting and inspection costs. This change improves administrative efficiency and reduces the City of El Cajon's role in managing and recovering those costs.

In parallel, the City of El Cajon is a partner in the East County Advanced Water Purification Program (ECAWP), an east county regional project that will divert a significant portion of the City's wastewater flows for advanced treatment and beneficial reuse beginning in 2027. While this project will reduce the volume of wastewater conveyed to the Metro System, the City will continue to rely on the regional system for portions of its service area, peak wet-weather flows, and overall system reliability. Maintaining an updated agreement governing regional wastewater treatment services remains essential to ensure continued operational flexibility, treatment capacity, and regional coordination.

Approval of the SARA and Administrative Agreement No. 1 will ensure continued access to the Metro System, preserve the City's treatment capacity rights, modernize administrative processes, and provide long-term operational and financial clarity.

SUMMARY OF AGREEMENTS
Second Amended and Restated Regional Wastewater Disposal Agreement (SARA) Replaces the existing regional wastewater agreement and extends the framework through 2065.

Establishes updated cost allocation and billing methods to reflect current and future system use.

Preserves the City's wastewater treatment capacity rights and continued access to the Metro system.

Provides a framework to support regional initiatives, including advanced water purification programs such as the ECAWP.

Maintains the City's representation and participation in regional wastewater system governance.

A simplified guide to SARA is provided in Attachment 3 - Understanding SARA.

Administrative Agreement No. 1
Clarifies roles and responsibilities related to the regional industrial pretreatment program.

Allows the City of San Diego to directly bill industrial users for permitting and inspection costs.

Improves administrative efficiency and reduces the City's administrative burden related to cost recovery.

Supports consistent regional administration of industrial wastewater regulations.

•
•
•
•
•
•
• •
•
•

CALIFORNIA ENVIRONMENTAL QUALITY ACT:

The proposed actions are exempt from the California Environmental Quality Act ("CEQA") pursuant to Section 15378(b)(5) of the State CEQA Guidelines, as the approval of these agreements constitutes an administrative activity that will not result in a direct or reasonably foreseeable indirect physical change in the environment.

FISCAL IMPACT:

The agreements provide for the continued use of the Metropolitan Sewage System for wastewater conveyance, treatment, and disposal. In Fiscal Year 2025, the City's cost for Metro System services was approximately $14.5 million, based on billing information provided by the City of San Diego.

With the implementation of the East County Advanced Water Purification (ECAWP), the majority of the City's wastewater flows will be diverted for advanced treatment and reuse, which is expected to reduce the City's overall reliance on the Metro System. However, the City will continue to use the regional system in certain service areas, for peak wet-weather flows, and to maintain operational reliability. Future costs will reflect these changes in flow volumes and the updated billing methodology established under the agreement.

The updated billing methodology established under SARA is expected to improve cost allocation accuracy and provide greater long-term financial predictability. Sufficient funding for these services is included in the City's Sewer Enterprise Fund and will continue to be incorporated into future budget planning.

Prepared By: Yazmin Arellano, Director of Development Services Reviewed By: Vince DiMaggio, Assistant City Manager
Approved By: Graham Mitchell, City Manager
Attachments
Resolution - Approving SARA
Resolution - Approving Admin. Agreement No. 1
ATT3-Understanding SARA
ATT4-SARA Final for Metro JPA
ATT5-SARA Exhibits A - H
ATT6-Administrative Agreement No.1

RESOLUTION NO. ___-26

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EL CAJON, CALIFORNIA

APPROVING THE SECOND AMENDED AND RESTATED

REGIONAL WASTEWATER DISPOSAL AGREEMENT

BETWEEN THE CITY OF SAN DIEGO AND PARTICIPATING AGENCIES

IN THE METROPOLITAN SEWERAGE SYSTEM

AND AUTHORIZING THE MAYOR TO SIGN THE AGREEMENT

WHEREAS, the 1998 Regional Wastewater Disposal Agreement between the City of San Diego and the participating agencies ( "Agreement") previously set planning, capacity rights and cost allocations of wastewater facilities in the regional the Metropolitan Sewerage System which the City of San Diego owns, operates and maintains for the purpose of treating and disposing of sewage for San Diego and certain other municipalities and districts including participating agencies like the City of El Cajon ("City") within the San Diego region; and

WHEREAS, effective on or around August 22, 2021, the City of San Diego and the participating agencies, including the City, amended the 1998 Agreement by executing an Amended and Restated Regional Wastewater Disposal Agreement (the "ARA") which addressed amendments to the Agreement related to the Pure Water Program and allocation of costs and financial protection of wastewater rate payers; and

WHEREAS, further necessary modifications to the ARA precipitated the Second Amended and Restated Wastewater Disposal Agreement (the "SARA") which clarifies and expands items relat ing to the wastewater billing methodology, agency roles and responsibilities, and cost-sharing approaches for Phase 1 and Phase 2 of the Pure Water Program; and

WHEREAS, the S ARA was considered and approved by the Metropolitan Wastewater Joint Powers Authority/Metropolitan Commission on October 2, 2025, with a vote of 11-1, and

WHEREAS, each participating agency and the City of San Diego are required to approve the SARA independently, with the implementation date to be July 1st following the last participating agency approval.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EL CAJON AS FOLLOWS:

1. The above recitals are true and correct, and are the findings of the City Council.

2. The City Council hereby approves the Second Amended and Restated Regional Wastewater Disposal Agreement and authorizes the Mayor to sign the Second Amended and Restated Regional Wastewater Disposal Agreement.

3. If the Second Amended and Restated Regional Wastewater Disposal Agreement is modified and the modifications are non- substantive or administrative agreements with non-substantive impacts to the City of El Cajon, then the Mayor is authorized to sign such modified agreement.

RESOLUTION NO. ____-26

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF EL CAJON APPROVING METROPOLITAN

SEWERAGE SYSTEM ADMINISTRATIVE AGREEMENT
NO. 1 FOR UNIFIED MANAGEMENT OF INDUSTRIAL

WASTE DISCHARGE PRETREATMENT AND

ENHANCED SOURCE CONTROL PROGRAMS
WHEREAS, the 1998 Regional Wastewater Disposal Agreement between the City of San Diego and the participating agencies ( "Agreement") previously set planning, capacity rights and cost allocations of wastewater facilities in the regional the Metropolitan Sewerage System which the City of San Diego owns, operates and maintains for the purpose of treating and disposing of sewage for San Diego and certain other municipalities and districts including participating agencies like the Ci ty of El Cajon ( "City") within the San Diego region; and
WHEREAS, effective on or around August 22, 2021, the City of San Diego and the participating agencies, including the City, amended the 1998 Agreement by executing an Amended and Restated Regional Wastewater Disposal Agreement (the " ARA") which addressed amendments to the Agreement related to the Pure Water Program and allocation of costs and financial protection of wastewater rate payers; and WHEREAS, further necessary modifications to the ARA precipitated the Second Amended and Restated Wastewater Disposal Agreement (the "SARA") which clarifies and expands items relating to the wastewater billing methodology, agency roles and responsibilities, and cost-sharing approaches for Phase 1 and Phase 2 of the Pure Water Program and the City Council of El Cajon approved the SARA on February 24, 2026; and WHEREAS, the SARA created a process for developing amending and terminating Administrative Agreements to address technical or operational matters without renegotiating the main agreement; and
WHEREAS, Administrative Agreement No. 1 to the Second Amended and Restated Regional Wastewater Disposal Agreement addresses specific programmatic details related to the Industrial Waste Discharge Pretreatment and Enhanced Source Control Program, which is c oordinated by City of San Diego, and includes permitting, inspection, compliance monitoring, source control mechanisms, laboratory work, enforcement, program administration and overhead, and claims management.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EL CAJON AS FOLLOWS:

1. The above recitals are true and correct, and are the findings of the City Council.

2. The City Council hereby approves Administrative Agreement No. 1 to the Second Amended and Restated Regional Wastewater Disposal Agreement and authorizes the Mayor to sign the Administrative Agreement.

3. The Mayor is authorized to sign any future Metropolitan Sewerage Administrative Agreements with non-substantive impacts to the City of El Cajon.

4918-9486-5265
Understanding the Second Amended and Restated Agreement (SARA) What is SARA?
• The Second Amended and Restated Agreement (SARA) amends the current operating agreement between the City of San Diego and the twelve Participating Agencies (PAs) that use the regional Metro Wastewater System.
• SARA is the result of over four years of negotiations between the PAs and the City of San Diego. It’s the work product of hundreds of hours of research and negotiation from the staffs of the JPA and the City of San Diego, with additional layers of review from the PA’s legal team, its Technical Advisory Committee, and the JPA Board members.

What does SARA do?
• Updates the legal document that governs our regional cooperation on wastewater treatment and recycled/repurified water planning, particularly related to the City’s Pure Water Project. • Reorganizes the document and modernizes the language. • Establishes the JPA’s standing and streamlines authority to handle administrative, technical and operational issues.
• Resolves six specific “Parking lot Items” issues that were left unresolved in 2021. • Provides more flexibility for future adjustments to keep the document relevant.

Key Updates in SARA:
• Establishes cost-sharing approaches for Phases 1 and 2 of the City’s Pure Water Program. • Introduces a new billing method (Functional Allocated Billing) to allocate Metro System costs more accurately based on how each agency uses the Metro System. • Establishes the Uniform Enforcement of the Pretreatment Program by the City of San Diego. • Outlines how future regional water reuse projects may be included in capital cost calculations.
• Provides a sample formula for calculating revenue from repurified water. • Includes provisions for the treatment and billing of wastewater from military bases.

Key Structural and Operational Improvements in SARA:
• Clarifies how fines, penalties, and regulatory enforcement actions are allocated among the parties.
• Creates a process for developing, amending, and terminating Administrative Agreements to address technical or operational matters without renegotiating the main agreement. • Establishes four approval paths to update SARA in the future, allowing for more tailored and efficient decision-making.

Approval Process:
• On Oct 2, 2025, SARA was approved, on an advisory vote, by the PA representatives on the Metro JPA. It is now sitting with each PA for formal review and approval. • San Diego will agendize SARA for approval after a majority or most of the PA’s have approved the agreement.
• After San Diego and all thirteen PAs approve, it will replace the current agreement for the next forty years (through 2065).
10-23-25
4907-3419-6844

SECOND AMENDED AND RESTATED

REGIONAL WASTEWATER DISPOSAL AGREEMENT

BETWEEN

THE CITY OF SAN DIEGO
AND

THE PARTICIPATING AGENCIES
IN

THE METROPOLITAN SEWERAGE SYSTEM
10-23-25
4907-3419-6844

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 ............................................................................................. 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 ....................... 19

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 .............................................................. 23

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....................................................................................................... 25

5.10 Allocation of Operating Reserves and Debt Service Coverage............................. 26

5.11 Amending the System of Charges ......................................................................... 26 10-23-25
4907-3419-6844

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............................................ 26

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 ............................................. 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......................................................................................................... 38 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 Outfall
SBWRP South Bay 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
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 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 “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 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 ARA or to its Exhibits to address multiple outstanding items described in Section 2.9 of the ARA; and - 3 -
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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

1.1Administrative 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.

1.2Administrative 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.

1.3Annual 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.

1.4ARA shall mean the Amended and Restated Regional Wastewater Disposal Agreement between the City and the Participating Agencies effective August 22, 2021.

1.5Capital Expense Rate shall mean the same as the term is defined in Section 6.7.2.

1.6Capital 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.

1.7Centrate shall mean the liquid byproduct that results from the dewatering of digested solids as part of wastewater treatment processes.

1.8Chemical Oxygen Demand or COD means the measure of the chemically decomposable material in wastewater, as determined by the procedures specified in the most - 4 -
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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.

1.9City shall mean and refer to the City of San Diego.

1.10City’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.

1.11City 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.

1.12Contract 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.

1.13Contract 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.

1.14CWA shall mean the San Diego County Water Authority.

1.15ECAWP 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.

1.16ECAWP JPA Agencies shall mean collectively the City of El Cajon, the Padre Dam Municipal Water District, and the San Diego County Sanitation District.

1.17ECAWP 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.

1.18Fixed 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.

1.19Fixed 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 - 5 -
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maintaining the Metro System. Items such as debt service are also included in the Fixed Capacity Charges.

1.20Flow shall refer to the flow of wastewater discharged by the City and/or one or more Participating Agency/ies into the Metro System.

1.21Functional 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.

1.22Functional-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.

1.23Incremental Peak Flow shall mean the Peak Flow minus the Monthly Average Daily Flow.

1.24Industrial 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.

1.25Industrial User means a discharger of Industrial Wastewater to a public sewer. A Participating Agency may be an Industrial User.

1.26Joint 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.

1.27MBC 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.

1.28Metered 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.

1.29Metro Commission or Metro JPA is the advisory body described under Section 9.

1.30Metro 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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1.31Metro System Revenues are those revenues set forth in Section 5.5.

1.32Metropolitan 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-ROM/DVD-ROM, including any amendments thereto authorized by this Agreement. Exhibit A includes current constructed facilities and proposed future facilities.

1.33Monthly Average Daily Flow is the number, in MGD, calculated by dividing total Flow on a monthly basis by the number of days in that month.

1.34Municipal 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.

1.35New Contract Capacity shall mean capacity in excess of the Contract Capacity set forth in Exhibit B and authorized subject to Section 3.3.

1.36North 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.

1.37Operation 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.

1.38Participating Agencies shall mean all the local governments and agencies that executed this Agreement other than the City.

1.39Peak 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.

1.40Point 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.

1.41Pooled 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.

1.42Postage 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. - 7 -
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1.43Projected Future Strength and Flow Amounts are the five (5) values described below:

1.43.1Projected 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.

1.43.2Projected 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.

1.43.3Projected 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.

1.43.4Projected 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.

1.43.5Projected 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.

1.44Pure 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.

1.45Pure 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.

1.46PWP Phase 1 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.

1.47PWP Phase 2 or Phase 2 shall mean the second phase of the 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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1.48Recycled 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.

1.49Reject 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.

1.50Repurified 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.

1.51Repurified 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.

1.52Residuals shall mean RSDP and Centrate. In the future, Residuals may include other waste byproducts if the Parties agree in writing that other byproducts may be discharged into the Metro System.

1.53South 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 of the date of this Agreement, the City owns 39.94% of the capacity of the outfall and the balance of the capacity is owned by the IBWC.

1.54South 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.

1.55Strength 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.

1.56Total 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.

1.57Tertiary 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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1.58Two-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.

1.59Variable Costs shall refer to the portion of the Functional Design Methodology costs that are allocated based on Metered Flow and Strength.

1.60Water 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 of this 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 of this 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 of reclamation/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 and/or operation of the Metro System from monies in (or sewer revenues which populate) the Sewer Revenue Fund for the Metro System, and/or 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 - 11 -
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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 (1) 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 their jurisdiction. The City will not provide FOG-related services or programs outside of the City’s jurisdiction.

2.6 Enforcement Actions. In the event a regulatory agency, imposes any penalty or fine, or takes other enforcement action, or a private citizen brings a citizen enforcement action to enforce - 12 -
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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 of the 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 of the 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. If these 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 - 13 -
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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 of the 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 of this 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 of Section 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 - 14 -
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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 of the 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 of the 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. If the 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 of this 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). - 15 -
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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 of the 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 - 16 -
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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 of that 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.”

3. 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 - 17 -
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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 if the 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 - 18 -
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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. If the 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. If the 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 of the completion of the 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. - 19 -
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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 of the 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, if the 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.

4.4.1 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 1 Capital Improvement Costs, PWP Phase 1 Repurified Water Revenue, and Pure Water Program Capital Expense Rate attributable to the - 20 -
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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 of this 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 of this 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 - 21 -
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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 - 22 -
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enforcement proceedings pursuant to Water Code sections 13261, et seq., section 13300, et seq., Government Code section 54740 et seq., or other provisions of law. Upon request from the Metro JPA 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 of the net Metro System Costs described in this section:

5.2 Functional Allocated Billing (FAB). 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 of the 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 of the 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 of the Pure Water Program. Any such receipts attributable to the Metro System components of the Pure Water Program shall be allocated among - 24 -
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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. If the 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 1 of each 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 of the 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 of the 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 - 26 -
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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, or Agreement expiration. If the 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.

6. FINANCE, BUDGETING, AND ACCOUNTING: PURE WATER PROGRAM COST ALLOCATION AND REVENUES – PHASE 1

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 of the 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 1 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 of Interest 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 1 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 of each 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 if the 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 MGD 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 - 31 -
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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 of which 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 of the 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 15, subject to the requirements set forth in this Section 7 below. - 33 -
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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 of the 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 FAB 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 - 34 -
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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 1 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

9.1Establishment 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 JPA”), 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 of its 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 - 35 -
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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 staff reports. 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 of two 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 - 36 -
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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.

11.1.1 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. If the 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 If the Metro System is insured separately, any policy or policies of liability 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 JPA 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. - 37 -
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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 D, 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 of the 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 of the 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 - 38 -
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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 (10) 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 if this Agreement expressly authorizes the use of an Administrative Agreement.

15.1.2 Amendments, Supplements, 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. - 39 -
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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. - 40 -
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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 of file, 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 of the 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 of the 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 of their 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 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 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.). - 41 -
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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 1 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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(l) 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 of the 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 of this 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. - 44 -
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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 of the 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 of the 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 of Limitations to Resolve Billing Issues. Notwithstanding any longer statute of limitations in State law, if the 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 - 45 -
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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 shall 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. If the 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 of the 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. - 46 -
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IN 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 OF CHULA VISTA
Name:

Title:

Approved as to Form:

Name:

Title:

CITY OF CORONADO
Name:

Title:

Approved as to Form:

Name:

Title:

CITY OF DEL MAR
Name:

Title:

Approved as to Form:

Name:

Title:

CITY OF EL CAJON
Name:

Title:

Approved as to Form:

Name:

Title:

CITY OF IMPERIAL BEACH
Name:

Title:

Approved as to Form:

Name:

Title:

CITY OF LA MESA
Name:

Title:

Approved as to Form:

Name:

Title:
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LEMON GROVE SANITATION DISTRICT
Name:

Title:

Approved as to Form:

Name:

Title:

CITY OF NATIONAL CITY
Name:

Title:

Approved as to Form:

Name:

Title:

OTAY WATER DISTRICT
Name:

Title:

Approved as to Form:

Name:

Title:

PADRE DAM MUNICIPAL WATER

DISTRICT
Name:

Title:

Approved as to Form:

Name:

Title:

CITY OF POWAY
Name:

Title:

Approved as to Form:

Name:

Title:

CITY OF SAN DIEGO
Name:

Title:

Approved as to Form:

Name:

Title:

SAN DIEGO COUNTY SANITATION

DISTRICT
Name:

Title:

Approved as to Form:

Name:

Title:
- 48 -
10-23-25
4907-3419-6844

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. - 49 -
10-23-25
4907-3419-6844

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 Listing
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 Administrative Agreements
J Exhibit List

SARA EXHIBITS A-H
Accompanying SARA 10/23/25
Exhibit A: Listing of Metro Facilities as of 10/23/2025 Metro Facilities (Electronic Exhibit);
file n
ame: 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.
1 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.

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 Outfall1

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
1 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. • 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 Sewer 2
• 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 1 Pure Water (Under Construction – Percent ownership will be assigned after audit) • Expand NCWRP
• Morena Pump Station
• Morena Pump Station Force Main
• Centrate/RSDP Line (From NCWRP to North Metro Interceptor) • East Mission Gorge / East County residuals line (Water, Muni, and Metro combined assets)
1 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.

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
s
Enn nlt as

CITY OF
DELMAR
Year Joined 1972
R,1n-h •
S..1nL1 f
'"'

NORTH NORTH CITY
CITY AWP WATER REC .
• PLANT
1'f, •
•-., METRO
0 \.. •• BIOSOLIDS
Ll J, ll1
* CENTER
,/~~:
~ I q_0 '
o TREATMENT
:,) .
o~A 1-: PLANT
,·
.i
·" \ .
'
•
.
\
! . . .
•
. ,
Pump Station 1
•
• •

CITY OF POWAY
Year Joined 1971
LEGEND
* TREATMENT PLANTS
• METRO PUMP STATIONS
• OTHER PUMP STATIONS
e METRO BILLING METERS
- METRO INTERCEPTORS
- - FORC E MAINS
• • • SLUDGE LINES
- - METRO OUTFALL

A , A IA A
!
'li
~
" " 'I I II JI
••
•
•
• •

PADRE DAM

MUNICIPAL

WATER DISTRICT
Year Joined 1974
EAST

COUNTYAWP
*
Sc1n tee
•
East Mission Gorge PS
• •

CITY OF LEMON
GROVE
·,

LAKESIDE/ALPINE
SD County Sanitation District
Year Joined 1974

OTAYWATER

DISTRICT
Year Joined 1970
j,;~l~T LOMA
po\N1' ~cEAN _ ~
\ ~J1~\}- ;: ;- -----· CITY OF
'- - - CORONADO
•
I
: Year Joined 1963

CITY OF

NATIONAL CITY
Year Joined 1963

CITY OF

IMPERIAL BEACH
• lm1 11 f
. '• .
• A SOUTH BAY
sou1'H WATER RECL
Year Joined 1963
SOUTH BAY SAY LA~~ PLANT
OCEAN oUTfA

CITY OF CHULA VISTA
Year Joined 1963
, OUTFALL __ - -- ✓----,:-~ SB INTL
} - -- - - - - _ . ..,,,,t=~ _"_ ~ WASTEWTR ~,erk-i.d
' ~ "~-r,1.,,,,,. - TREATMNT PLT J
FracJ Secc
Ja rd1nes
del Sol
/
Granp s L::i
Esperanza
163 m_
Flo res M.:196n
Bo urn i.-a,,cr-Feiq,
r~ .§- "v~
($'? ~<,. I,,
,.'1,/-:~iro Verde "~,;(~~-\,
(J~ -0
\ .
'l,
PorqU<" '(I
lnd u trl"II "l

EAST OTAY MESA
SD County Sanitation District
Year Joined 2000
R1n:on Dorado
r r.xc Mariano
l\.bbmoros
Centro
-- --
--
R eslde 11 lal Pa, ll,eo 111 l do Oclubf\;
H acienfia · P.i rqUl
SanGJS, IB.1:1rea(j.<1f LaN'd'Management, Esri, HERE, Garmin, INCREMEN~i;l.5i1:lS, ~f · \
2 -v __... . '""'NG~, EP SDA
Exhibit B
Distribution of Wastewater System Capacity Rights
1 2 3 4 5 6 7
Average Flow2,
MGD
Incremental
Peak Flow3,
MGD
RSPD4, MGD
Total Allowable
Flow3,
MGD
TSS2,
1,000 lbs.

COD2,
1,000 lbs. Pure Water Phase 15

18.33 19.52 0 37.85 22,082 38,419 11.699%

1.90 3.03 0 4.93 2,089 3,336 1.152%

0.00 0.30 0 0.30 0 0 0.020%

1.79 3.48 0 5.27 1,915 3,336 1.096%

1.29 19.93 0.602 21.82 2,196 3,052 0.497%

2.47 4.48 0 6.95 2,045 3,844 1.411%

5.29 23.90 0 29.19 4,668 9,636 2.823%

0.07 1.67 0.310 2.05 238 293 0.153%

2.40 4.51 0 6.91 2,289 4,387 1.395%

4.65 3.07 0 7.72 4,562 9,161 2.852%

0.38 0.57 0 0.95 984 835 0.457%

0.44 6.54 0.364 7.34 632 890 0.444%

3.10 8.80 0 11.90 3,113 5,073 1.869%

5.74 5.05 0 10.79 6,039 10,597 3.765%

0.02 1.08 0.080 1.18 65 80 0.044%

47.9 105.9 1.356 155.1 52,916 92,938 29.677%
124.05 136.16 0 260.21 130,032 252,818 70.323%
0 0 14.3 0.00 0 0 0
124.1 136.2 14.3 260.2 130,032 252,818 70.323%
- 82 - 82 - - -
171.9 324.1 15.7 497.4 182,948 345,756 100%

2. Based on monthly average flow and strength.

3. Based on hourly average flow.

ANNUAL FIXED CAPACITY RIGHTS1

DISTRIBUTION OF WASTEWATER SYSTEM CAPACITY RIGHTS
Lakeside/Alpine
AGENCY
Chula Vista
Coronado
Del Mar
East Otay Mesa
El Cajon
Imperial Beach
La Mesa

SUBTOTAL
Lemon Grove
National City
Otay
Padre Dam
Poway
Spring Valley
Wintergardens

SUBTOTAL

5. Pure Water Phase 1 Capital Melded Percentages as established in Exhibit G of the "Amended and Restated Regional Wastewater Disposal Agreement Between the City of San Diego and the Participating Agencies in the Metropolitan Sewerage System" memorialized here only for use in billing Pure Water Phase 1 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 SS COD

0.482 0.257 0.243

4. Reject Stream from Demineralization Process

1. Currently based on 2050 projected flows and strengths.

EXHIBIT B
Metro I&I
San Diego
Wastewater
Water
TOTAL
7/18/2025
I I
Exhibit C
Administrative Protocol on Allocation of Operating
Reserves and Debt Service Coverage to Participating
Agencies
METRO WASTEWATER JPA 276 Fourth Avenue Chula Vista, CA 91950 619-476-2557 April 19, 2010
Rod Greek
Public Utilities Deputy Director
City of San Diego, Metropolitan Wastewater
9192 Topaz Way
San Diego, CA 92123
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 TAC/ Metro JPN 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 JPN Metro Commission acknowledge and agree to the terms and conditions contained in the attached Protocol.

Sincerely,
ril!t:l!&1fi!jpAf i.fltormnission
Enclosure
The Protocol is accepted by the City of San Diego pursuant to the terms and conditions set forth in the attachment hereto:

Date: lf /29 /, 0
/ I
The Protocol is accepted by Metro TAC/ Metro JPN Metro Commission on behalf of the Participating Agencies pursuant to the terms and conditions set forth in the attachment hereto:

Date:.!.7wh ~\,
The Joint Powers Authority Proactively Addressing Regional Wastewater Issues Chula Vista • Coronado • Del Mar • Imperial Beach • La Mesa • Lemon Grove Sanitation District National City• Olay Water District• Poway• Padre Dam Municipal Water District County of San Diego, representing East Olay, Lakeside/Alpine, Spring Valley & Winter Gardens Sanitation Districts 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 FYE 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 Wastewater JPA, 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.

PROTOCOL 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 Bis 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
SDPUB\PDESOUSA\393171.1