La Mesa City Council
September 8, 2026

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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 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

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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 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

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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).

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

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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 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.

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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 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

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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 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 a notice explaining the facts and circumstances that the City’s determination is based on(including any relevant data available), and 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

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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.

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.

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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 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

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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 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

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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 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). A detailed illustration of the FAB methodology using sample data is attached hereto as Exhibit J (the Sample FAB Calculation) to assist the Parties in understanding how the FAB methodology works. Exhibit J provides an illustration of the application of FAB to applicable parameters and the derivation of unit rates and resulting charges. The Parties agree that Exhibit J is intended to promote transparency and a common understanding of the implementation of FAB under this Agreement, but the Parties acknowledge that Exhibit J is illustrative only and shall not control over the terms of this Agreement or the actual calculation of annual FAB rates, which shall be determined in accordance with this Section 5.

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.

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5.2.1.3 After conducting a professionally developed independent thirdparty 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.

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.;

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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 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

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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.

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

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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 inprogress 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 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 5.2.1.3, 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

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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.

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

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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.

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.

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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:

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

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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.

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.

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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 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.

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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
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

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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.

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.

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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 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

9.1 Establishment and Membership. The 1998 Agreement created and established (and the ARA reestablished) the Metro Commission as a commission consisting of one representative from each Participating Agency. On October 25, 2000, the Participating Agencies entered into a Joint Exercise of Power Agreement which created a separate public entity, the Metro Wastewater Joint Powers Authority (“Metro 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

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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 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.

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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 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

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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.

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. Once all Parties have executed this Agreement, this Agreement shall be considered effective on July 1, 2026 irrespective of the date on which the last executing party signs the Agreement.

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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 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

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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.

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), except that any changes to (i) the FAB, including the Functional Design Methodology required to be approved by way of an Administrative Agreement under Section 5.2.1.3, (ii) how Repurified Water Revenue is shared under Section 6.6, (iii) how the Capital Expense Rate is determined as set forth in Section 6.7; or (iv) how Pure Water Program Cost Allocation and Revenues for Phase 2 are calculated under Section 7, shall require approval by no less than three-quarters of the members of the Metro JPA during a duly noticed public meeting (in other words, upon the affirmative vote of at least nine or more of the twelve members of the Metro JPA, irrespective of how many Metro JPA Director 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

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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 K, 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.

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

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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 CDROM, DVD-ROM, or other electronic storage medium that is a write-once medium without the ability to further edit. Each Party shall receive identical copies of the Electronic Exhibits via identical storage mediums. Amended Electronic Exhibits shall bear identical Exhibit Identifiers as their predecessor exhibits, but with a different suffix (for example, Exhibit A, when amended, shall be identified as Exhibit A-1, a subsequent amendment shall be identified as Exhibit A-2, etc.).

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)

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(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
(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

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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
(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

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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.

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

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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 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

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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.

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:

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CITY OF IMPERIAL BEACH

Name:

Title:

Approved as to Form:

Name:

Title:

CITY OF LA MESA

Name:

Title:

Approved as to Form:

Name:

Title:

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:

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SAN DIEGO COUNTY SANITATION

DISTRICT

Name:

Title:

Approved as to Form:

Name:

Title:

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EXHIBIT 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

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EXHIBIT B

DISTRIBUTION OF WASTEWATER SYSTEM CAPACITY RIGHTS

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EXHIBIT C

ADMINISTRATIVE PROTOCOL ON ALLOCATION OF OPERATING RESERVES

AND DEBT SERVICE COVERAGE TO PARTICIPATING AGENCIES

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EXHIBIT D

NOTICE LISTING

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EXHIBIT E

METHODOLOGY FOR CONTRACT CAPACITY TRANSFERS

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EXHIBIT F

METRO SYSTEM FLOW FORMULAS AND SAMPLING LOCATIONS

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EXHIBIT G

SAMPLE OF INTEREST CALCULATION

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EXHIBIT H

SUMMARY OF BILLINGS FROM COUNTY WATER AUTHORITY SHOWING COSTS

FOR UNTREATED WATER

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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.

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EXHIBIT J

FAB METHODOLOGY EXAMPLE

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EXHIBIT K

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 FAB Methodology Example
K Exhibit List

REPORT to the MAYOR and MEMBERS of the CITY COUNCIL
From the CITY MANAGER
DATE: September 8, 2026
SUBJECT: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY

OF LA MESA DELEGATING AUTHORITY TO THE CITY

OF SAN DIEGO TO ENFORCE REGULATIONS FOR

THE DISCHARGE OF INDUSTRIAL WASTEWATER TO

SEWERAGE FACILITIES, PRETREATMENT, AND

SOURCE CONTROL PROGRAM
ISSUING DEPARTMENT: Public Works
Recommendation:

That the City Council approve the introduction and first reading of the Ordinance:

An Ordinance of the City Council of the City of La Mesa delegating authority to the City of San Diego to enforce regulations for the discharge of industrial wastewater to sewerage facilities, pretreatment, and source control program.

Fiscal Impact:

The City of San Diego recovers the costs associated with the industrial pretreatment program directly from the regulated industrial users, in accordance with regional agreements. Therefore, this ordinance will not result in a fiscal impact.

City’s Strategic Goals:
 Invest in infrastructure to serve the needs of the community.

Environmental Review:

This is not a project under CEQA and is therefore not subject to environmental review.

Report to Mayor and Councilmembers
Date: September 8, 2026
Page: 2 of 3
BACKGROUND:

The City of La Mesa provides wastewater service to more than 13,000 customers within the incorporated area. The City owns and operates approximately 150 miles of sewer pipeline. With this municipal sewer system, the City collects and conveys wastewater flows originating from residential and commercial properties and connects to the City of San Diego’s municipal sewer system and subsequently the Metropolitan Wastewater System (Metro). Flows ultimately arrive at San Diego’s Point Loma Treatment Plant for treatment and disposal.

On November 12, 2025, the La Mesa Council approved the Second Amended and Restated Regional Wastewater Disposal Agreement (SARA) and Administrative Agreement No. 1.

Administrative Agreement No. 1 (Exhibit B) addresses the industrial pretreatment program conducted by the City of San Diego. The industrial pretreatment program involves the inspection and permitting of facilities within a range of commercial and industrial classifications which have a wastewater discharge. The inspection and permitting has historically been conducted by the City of San Diego, billing the City of La Mesa, who then must bill the business owners. Changes under the Administrative Agreement No. 1 include:
 Inspection and permitting billing will now be administered by the City of San Diego.

Previously La Mesa was billed by San Diego and obligated to recoup costs from business owners. Now, San Diego will directly bill the business owners directly.  Legal language was clarified related to the responsibility of the City of San Diego and each Participating Agency related to pretreatment.

The Ordinance update is needed to make the City’s Municipal Code compliant with Administrative Agreement No. 1. It does the following:
 Retains locally relevant sewer connection, construction, and inspection requirements;
 Removes outdated or duplicative industrial discharge standards;  Delegates industrial pretreatment authority to the City of San Diego as required by the Administrative Agreement No. 1

Report to Mayor and Councilmembers
Date: September 8, 2026
Page: 3 of 3
 Automatically adopts San Diego’s EPA-approved local limits, prohibited discharge standards, and enforcement protocols
DISCUSSION:

The recommendation effectively updates the City’s regulations regarding industrial discharge to the current standard under the approved Administrative Agreement No. 1.

The City of San Diego previously had been conducting the inspection program with quasienforcement capabilities and no billing capabilities. The proposed changes will allow the City of San Diego to operate the program in its entirety. This change was deemed necessary with the Pure Water San Diego infrastructure in development, and an increased risk profile of this new infrastructure. All Metro Wastewater agencies are anticipated to adopt similar code updates.

Currently, less than 10 facilities in La Mesa are part of this program. These include a major hospital, several car washes, a school bus yard, and the City’s public works yard.

Annual permit fees and inspection for 2026 total about $2,600/year per user. The City of San Diego may add facilities and may increase fees as they deem acceptable per their program. It is anticipated that permit fees will rise over the coming years due to periodic cost of service analysis conducted by the City of San Diego.

CONCLUSION:

Staff recommends that the City Council approve the introduction and first reading of the Ordinance:

An Ordinance of the City Council of the City of La Mesa delegating authority to the City of San Diego to enforce regulations for the discharge of industrial wastewater to sewerage facilities, pretreatment, and source control program.

Reviewed by: Respectfully submitted by:
____________________ ____________________________
Greg Humora Michael Throne, PE
City Manager Director of Public Works
Attachments: A. Ordinance
B. Administrative Agreement 1

ORDINANCE NO. 2026-XXXX

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA MESA

DELEGATING AUTHORITY TO THE CITY OF SAN DIEGO TO ENFORCE

REGULATIONS FOR THE DISCHARGE OF INDUSTRIAL WASTEWATER

TO SEWERAGE FACILITIES, PRETREATMENT, AND SOURCE

CONTROL PROGRAM
WHEREAS, the City of La Mesa is a Participating Agency in the Metropolitan Sewerage System and conveys wastewater to facilities owned and operated by the City of San Diego;
WHEREAS, the Federal Clean Water Act and the National Pretreatment Program (40 C.F.R. Part 403) require that industrial discharges to publicly owned treatment works be regulated through an approved pretreatment program;
WHEREAS, the City of La Mesa has adopted Sewage Disposal Ordinance No. 1984-2360 establishing a local sewer use ordinance, including a pretreatment and source control program to control discharges from all industrial and other users of its wastewater collection and treatment system pursuant to the requirements of 40 CFR Part 403 and California law;
WHEREAS, the City of La Mesa has contracted with City of San Diego to manage, treat, and dispose of wastewater discharged within City of La Mesa’s boundaries and conveyed to the Metropolitan Sewerage System, a regional wastewater system owned by City of San Diego and in which La Mesa owns contract capacity; WHEREAS, Government Code sections 6502 and 6513 provide authority for City of La Mesa to contract with City of San Diego for such purposes and to delegate to City of San Diego primary responsibility for implementation and enforcement of Industrial Waste Discharge Pretreatment, as may be amended for time to time; and WHEREAS, La Mesa desires City of San Diego to assume primary responsibility for implementation and enforcement of City of La Mesa’s regulations for the control of discharges to the Metropolitan Sewerage System from all industrial and other users of its wastewater collection and treatment system pursuant to the requirements of 40 CFR Part 403 and California law, other than food establishments and dischargers of fats, oils, and grease for which City of La Mesa retains primary responsibility, and the City of San Diego shall not be responsible for, and does not accept authority or responsibility to inspect, monitor or enforce any source control program requirements for any Participating Agency’s NPDES permits.

NOW, THEREFORE, BE IT AND IT IS HEREBY ORDAINED by the City Council of the City of La Mesa, California as follows:

SECTION 1: Delegation of Authority
Notwithstanding any provision of Ordinance 1984-2360 to the contrary, the City Council of the City of La Mesa, hereby delegated to City of San Diego authority to implement and enforce the terms and conditions of the Industrial Waste Discharge Pretreatment and Enhanced Source Control Program in City of La Mesa’s jurisdiction as the agent of City of La Mesa, to be effective upon the date of execution of the Administrative 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 Program (Resolution 2025-141) dated November 12th 2025, as may be amended from time to time, to the Second Amended and Restated Regional Wastewater Disposal Agreement between City of San Diego and the Participating Agencies in the Metropolitan Sewerage System.

SECTION 2: Section 17.20.010 (Definitions) shall add the following:
“For purposes of industrial wastewater regulation, the terms “Industrial User,” “Significant Industrial User,” “Pretreatment,” “Interference,” “Pass Through,” “Local Limits,” “Slug Discharge,” and other pretreatment-related terms shall have the same meanings as set forth in 40 C.F.R. Part 403 and Chapter 6, Article 4 of the San Diego Municipal Code, as amended from time to time.” SECTION 3: Section 17.20.439 (Industrial Wastewater) is amended to read as follows:
“(a) Chemical or industrial liquid wastes shall not be discharged into the public sewer system without a valid Industrial User Permit or Discharge Authorization issued by the City of San Diego pursuant to 40 C.F.R. Part 403 and Chapter 6, Article 4 of the San Diego Municipal Code. (b) All applicable pretreatment standards, local limits, monitoring, reporting, and enforcement requirements shall be those administered by the City of San Diego as Control Authority.
(c) Prohibited discharges to the public sewer system shall be those identified in San Diego Municipal Code section 64.0510, as amended, which is hereby adopted by reference and enforced by the City of San Diego as the Control Authority pursuant to Section 14.06.195 of this chapter. (d) This section shall not apply to Fats, Oils, and Grease discharges from Food Service Establishments, which are regulated under Chapter 17.24 of this Code.

(e) Pursuant to Government Code sections 6502 and 6513 and the 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 Program as may be amended from time to time, to the Second Amended and restated Regional Wastewater Disposal Agreement between City of San Diego and the Participating Agencies in the Metropolitan Sewerage System. The City of La Mesa hereby delegates to the City of San Diego full authority to administer, permit, inspect, monitor, enforce, and recover costs for the Industrial Wastewater Pretreatment and Source Control Program within La Mesa. (f) Local limits established by the City of San Diego as Control Authority are hereby adopted and enforceable within the City of La Mesa, including future amendments approved by the U.S. Environmental Protection Agency or the San Diego Regional Water Quality Control Board.”
SECTION 4: CEQA Exempt
This ordinance is exempt from the California Environmental Quality Act pursuant to CEQA Guidelines section 15308 (Actions by Regulatory Agencies for the Protection of the Environment).

SECTION 5: Effective Date
This Ordinance shall be effective 30 days after its adoption and the City Clerk shall certify to the adoption of this Ordinance. The City Clerk is hereby authorized to use summary publication procedures pursuant to Government Code Section 36933 utilizing a newspaper of general circulation published in the City of La Mesa.

INTRODUCED AND FIRST READ at a Regular meeting of the City Council of the City of La Mesa, California, held the 8th day of September 2026, and therefore PASSED AND ADOPTED at a Regular meeting of said City Council held the 22nd day of September 2026, by the following vote, to wit:

AYES:

NOES:

ABSENT:

APPROVED:

MARK ARAPOSTHATHIS, Mayor
ATTEST:
________________________________
MEGAN WEIGELMAN, CMC, City Clerk

CERTIFICATE OF CITY CLERK
I, MEGAN WIEGELMAN, City Clerk of the City of La Mesa, California, do hereby certify the foregoing to be a true and exact copy of Resolution No. 2026- , duly passed and adopted by the City Council of said City on the date and by the vote therein recited.

MEGAN WEIGELMAN, CMC, City Clerk
(SEAL OF CITY)

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ADMINISTRATIVE AGREEMENT #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
This Administrative Agreement #1 (“Administrative Agreement”), 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 is entered by and among the CITY OF SAN DIEGO, a municipal corporation (“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 (individually a “Participating Agency” or collectively, the “Participating Agencies”), on the other hand, and shall be effective 30 days after execution by all Parties (the “Effective Date”).

City and each Participating Agency may be referred to herein individually as a “Party” and collectively as the “Parties.”
WHEREAS, City operates the Metro System, a regional wastewater system that collects, treats and disposes of wastewater generated from within City’s boundaries and from within the service areas of the Participating Agencies, in accordance with NPDES Permit No. CA107409 and California Waste Discharge Requirements; and
WHEREAS, City desires to carry out a uniform industrial waste disposal, pretreatment and enhanced source control program (“Industrial Pretreatment and Source Control Program,” as defined below) on behalf of itself and the Participating Agencies in the Metropolitan Sewerage System (“Metro System”) throughout the Metro System service area; and to help ensure that City can meet the requirements of its NPDES permits, including implementation of both indirect potable reuse under Phase 1 of Pure Water San Diego and a potential future direct potable reuse (“DPR”) program; and
WHEREAS City and Participating Agencies determined that the centralized operation of an Industrial Pretreatment and Source Control Program provides certain General Benefits (as defined below) to all users of the Metro System. Absent an Industrial Pretreatment and Source Control Program providing these General Benefits, the increased costs would be incurred as general treatment and disposal costs of the Metro System. Additionally, any Participating Agency with Industrial Users in their jurisdiction would also incur the costs of operating their own program; and

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WHEREAS, pursuant to Government Code Sections 6502 and 6513, the Participating Agencies may delegate to City full authority to carry out a common Industrial Pretreatment and Source Control Program, on behalf of City and the Participating Agencies, which meets the requirements of federal and state law, including City’s required permits, and is consistent with the Industrial Pretreatment and Source Control Program ordinances enacted by City and each Participating Agency, as amended from time to time; and WHEREAS, pursuant to such delegation, City may issue industrial user permits or discharge authorizations to Industrial Users, levy and collect industrial waste Discharge, Pretreatment, and permitting fees, fines and penalties, and recover other costs of monitoring and enforcement from industrial and other users discharging to the Metro System on behalf of the Participating Agencies; and
WHEREAS, City and the Participating Agencies must ensure that all Industrial Users within the Metro System are regulated under an effective Industrial Pretreatment and Source Control Program that conforms to all applicable laws, rules and regulations; and WHEREAS, previously, City and the Participating Agencies individually entered into individual “Interjurisdictional Pretreatment Agreements” under which the Participating Agencies agreed to adopt and diligently enforce an ordinance which conforms to the minimum legal requirements contained in the Federal Pretreatment Regulations and other provisions of Federal and California law, including carrying out an industrial Pretreatment program and complying with all NPDES and waste discharge requirements issued to each Participating Agency; and WHEREAS, currently, the costs related to the industrial Discharges inspection, monitoring, and enforcement program within City’s boundaries, including related administrative and laboratory costs, are excluded from the amounts charged by City as Metro System Costs to City and the Participating Agencies pursuant to section 5.2.1.2.3 of the Amended and Restated Regional Wastewater Disposal Agreement (“ARA” as defined further herein), and WHEREAS, City and the Participating Agencies agreed, pursuant to section 2.9.1.3 of the ARA, to negotiate in good faith to allow certain costs relating to the Industrial Pretreatment and Source Control Program to be charged as Metro System Costs to City and Participating Agencies in recognition of the General Benefits that the program provides to the Metro System; and WHEREAS, based on the above, the Participating Agencies agree to delegate City, as the agent of each PA, and City agrees to accept, the authority and responsibility for diligently inspecting, monitoring and enforcing City’s Industrial Pretreatment and Source Control Program ordinances on behalf of the Participating Agencies within their respective boundaries through administrative or legal proceedings, with Participating Agencies working in coordination with City as necessary in enforcement efforts. The City shall not be responsible for, and does not accept authority or responsibility to inspect, monitor or enforce any source control program requirements for any Participating Agency’s NPDES permits, and
WHEREAS, City and Participating Agencies intend for all costs relating to the Industrial Pretreatment and Source Control Program be recovered, to the maximum extent permissible by law, through fees, costs, charges, and fines billed directly to Industrial Users subject to the

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Industrial Pretreatment and Source Control Program, and for such fees, costs, charges, and fines to be reviewed and updated periodically to ensure maximum cost recovery. These costs include, but are not limited to, costs of permitting, inspection, compliance monitoring, setting of Local Limits, source control, and enforcement.

NOW, THEREFORE IT IS AGREED:

1. RECITALS INCORPORATED. The foregoing recitals are true and correct and are hereby incorporated into this Administrative Agreement by reference.

2. DEFINITIONS. Terms in this Administrative Agreement shall have the same meaning as set forth in the Code of Federal Regulations [C.F.R.] at 40 C.F.R. 401.11 and 403.3.

The meaning of various other terms as used in this Administrative Agreement shall be as follows:
(a) “Act” means the Federal Water Pollution Control Act, also known as the Clean Water Act, as amended, 33 U.S.C. 1251 et seq.
(b) “ARA” means Amended and Restated Regional Wastewater Disposal Agreement executed by and between the City and the Participating Agencies. (c) “Categorical Pretreatment Standard,” “Categorical Standard,” “National Pretreatment Standard,” “Pretreatment Standard,” or “Standard” means any regulation containing pollutant discharge limits promulgated by the EPA in accordance with section 307(b) and (c) of the Act, which applies to Industrial Users. This term includes prohibitive discharge limits established pursuant to 40 C.F.R. 403.5.
(d) “C.F.R.” means the Code of Federal Regulations.
(e) “Discharge” or “Indirect Discharge” means the introduction of pollutants into the POTW from any nondomestic source regulated under section 307(b), (c), or (d) of the Act. (f) “EPA” means the United States Environmental Protection Agency. (g) “FOG” means Fats, Oils and Greases. Any substance such as a vegetable or animal product that is used in, or is a byproduct of, the cooking or food preparation process, and that turns or may turn viscous or solidifies with a change in temperature or other conditions. (h) "Food Establishment" means food facilities defined in California Retail Food Code (commencing with Health and Safety Code section 113700), and any commercial entity within the boundaries of City and the Participating Agencies, operating in a permanently constructed structure such as a room, building, or place, or portion thereof, maintained, used, or operated for the purpose of storing, preparing, serving, or manufacturing, packaging, or otherwise handling food for sale to other entities, or for consumption by the public, its members or employees, and which has any process or device that uses or produces FOG, or grease vapors, steam, fumes, smoke or odors that are required to be removed by a Type I or Type II hood, as defined in the California Retail Food Code. A limited food preparation establishment is not considered a Food Service Establishment when engaged only in reheating, hot holding or assembly of ready to eat food products and as a result, there is no wastewater Discharge containing a significant amount of FOG. A limited food preparation establishment does not include any operation that changes the form, flavor, or consistency of food.

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(i) “General Benefits” mean and refer to the benefits provided to all users of the Metro System as the result of the Industrial Pretreatment and Source Control Program, including, but not limited to: a decrease in damage to and extended life of collection systems, pump stations and treatment systems by limiting Discharge of corrosive chemicals; consistency and efficiencies in enforcement, such as the provision of a database for potential violations of permit requirements and a reduction in time to identify sources of actual or potential violations; a decreased risk of permit violations that could result in fines and increased permitting costs to customers; the centralized conduction and management of strength and other sampling for agency billings, or as required for investigation of sewer system issues; increased regional awareness of impacts of Discharges of hazardous materials to the Metro Sewer System; a safer sewer system for wastewater employees; a reduction in illegal Discharges to the Metro System (because City will monitor and accept trucked waste and septage from septic tanks from customers throughout the county); and avoidance or reduction of Discharges to system that could result in plant upsets, bypass, spills, or other disruption of the system, including avoiding penalties or fines resulting from the same. (j) “General Benefits Costs” mean and refer to the costs associated with providing General Benefits to the Metro System, which are calculated as set forth herein. General Benefits Costs shall be charged to the City and the Participating Agencies based on their proportionate share of Flow and Strength, as defined in the SARA.
(k) “Industrial Pretreatment and Source Control Program” means an industrial waste Discharge, Pretreatment, and source control program that is sufficient to meet the requirements of federal and state law and the City’s NPDES Permit requirements relating to the Discharge to public sewers upstream of the Metro System. Such program may include, but not be limited to, permitting, inspection, compliance monitoring, Local Limits , source control mechanisms, laboratory work, enforcement, program administration and overhead, and claims relating to the program. The City’s program is known as the Industrial Wastewater Control Program or IWCP.
(l) “Industrial Wastewater” means wastewater from any producing, manufacturing, processing, institutional, commercial, service, agricultural, or other similar operation even if such wastewater is combined with domestic wastewater, and includes groundwater and surface run-on at project sites with active construction dewatering or groundwater remediation as defined in Chapter 6, Article 4, Division 2 of the San Diego Municipal Code. If the definition of Industrial Wastewater provided in Chapter 6, Article 4, Division 2 of the San Diego Municipal Code is modified during the term of this Agreement in a way that conflicts with this definition, the meaning in the San Diego Municipal Code shall supersede this definition, without the necessity of an amendment to this Agreement.
(m) “Industrial User” means a source of Indirect Discharge. (n) “Industrial Users’ Costs” means that portion of the Total Program Costs remaining to be allocated among Industrial Users in accordance with applicable law, after deducting the Trucked Waste Costs and the amount of the General Benefits Costs from the Total Program Costs.
(o) “Interference” means a Discharge which, alone or in conjunction with a discharge or discharges from other sources, both: (1) inhibits or disrupts the POTW, its treatment processes or operations, or its sludge processes, use or disposal; and (2) therefore is a cause of a violation of any requirement of the POTW’s National Pollutant Discharge Elimination System [NPDES]

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permit (including an increase in the magnitude or duration of a violation) or of the prevention of sewage sludge use or disposal in compliance with the following statutory provisions and regulations or permits issued thereunder (or more stringent State or local regulations): Section 405 of the Clean Water Act, the Solid Waste Disposal Act [SWDA] (including title II, more commonly referred to as the Resource Conservation and Recovery Act [RCRA], and including State regulations contained in any State sludge management plan prepared pursuant to subtitle D of the SWDA), the Clean Air Act, the Toxic Substances Control Act, and the Marine Protection, Research and Sanctuaries Act.
(p) “Laboratory Services Costs” mean that portion of the laboratory services costs incurred by the City related to IWCP, determined by the number of IWCP samples processed compared to the number of total samples processed by the laboratory. For example, if the laboratory services processed 100 total samples in a year, and 40 of those samples were IWCP samples, then 40% of the City’s total Laboratory Services Costs would be part of the Total Program Costs as defined below.
(q) “Local Limit” means a numerical limit on a pollutant established by the City to implement the general and specific prohibitions currently set forth in San Diego Municipal Code section 64.0512, as may be amended, renumbered, or retitled from time to time. Such limits shall be technically based and shall require EPA and/or Regional Water Quality Control Board approval prior to implementation.
(r) “Metro System” means and consist of those facilities of the Metropolitan Sewerage System which are listed, shown and/or described in Exhibit A attached to the SARA, as may be amended from time to time.
(s) “Publicly Owned Treatment Works” or “POTW” means treatment works as defined by section 212 of the Act, which is owned by a State or municipality (as defined by section 502(4) of the Act). This definition includes any devices and systems used in the storage, treatment, recycling and reclamation of municipal sewage or industrial wastes of a liquid nature. It also includes sewers, pipes and other conveyances only if they convey wastewater to a POTW Treatment Plant. The term also means the municipality as defined in section 502(4) of the Act, which has jurisdiction over the Indirect Discharges to and the discharges from such a treatment works.
(t) “POTW Treatment Plant” means that portion of the POTW which is designed to provide treatment (including recycling and reclamation) of municipal sewage and industrial waste. (u) “Pretreatment” means the reduction of the amount of pollutants, the elimination of pollutants, or the alteration of the nature of pollutant properties in wastewater prior to or in lieu of discharging or otherwise introducing such pollutants into a POTW. The reduction or alteration may be obtained by physical, chemical or biological processes, process changes or by other means, except as prohibited by 40 C.F.R. 403.6 (d). Appropriate pretreatment technology includes control equipment, such as equalization tanks or facilities, for protection against surges or slug loadings that might interfere with or otherwise be incompatible with the POTW. However, where wastewater from a regulated process is mixed in an equalization facility with unregulated wastewater or with wastewater from another regulated process, the effluent from the equalization facility must meet an adjusted pretreatment limit calculated in accordance with 40 C.F.R. 403.6(e).

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(v) “Pretreatment Requirement” means any substantive or procedural requirement related to Pretreatment, other than a National Pretreatment Standard, imposed on an Industrial User.
(w) “SARA” means the Second Amended and Restated Regional Wastewater Disposal Agreement made and entered into by and between the CITY OF SAN DIEGO, a municipal corporation, 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. (x) “Total Program Costs” means all of the costs incurred by the City’s Public Utilities Department to staff, operate, and maintain the City’s Industrial Wastewater Control Program (or successor program if renamed in the future). Permissible program costs include but are not limited to personnel, permit issuance, monitoring and related programmatic and administrative costs including costs associated with reasonable overhead, regulatory compliance, and laboratory services.
(y) “Trucked Waste Costs” mean the costs associated with administering the City’s Industrial Wastewater Control Program and treating the wastewater disposed of into the wastewater system through delivery by a transport truck, which costs are charged directly to the trucking discharger.

3. ORDINANCE ADOPTION. No later than 60 days after the Effective Date of this Administrative Agreement, each Party to this Administrative Agreement shall begin the process of amending its Pretreatment ordinances or resolutions, as applicable, including providing public notices as may be required by law, as necessary to implement this Administrative Agreement.

Each Participating Agency shall adopt an ordinance delegating authority to City to implement, operate and enforce an Industrial Pretreatment and Source Control Program against Industrial Users in the Metro System, in a form substantially similar to the model ordinance attached to this Administrative Agreement as Attachment A. Each Participating Agency must provide a copy of its adopted ordinance to City. Each Party’s revised ordinances or resolutions (as applicable) governing Pretreatment shall be adopted and effective by no later than the effective date of the SARA as set forth in Section 14.1 of the SARA.

4. NOTICE AND AMENDMENTS. On or shortly after the Effective Date of this Administrative Agreement, City shall notify the Participating Agencies of any amendments to City’s ordinances or Municipal Code relating to Pretreatment, in order to develop and maintain, insofar as possible, a uniform set of wastewater disposal regulations at least as stringent as those adopted by City throughout the Metro System, including the established Local Limits and source control measures for protection of the Pure Water program. Throughout the life of this

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Administrative Agreement, City shall continue to notify the Participating Agencies of any amendments to City’s ordinances or Municipal Code relating to the Industrial Pretreatment and Source Control Program which may require the Participating Agencies to take action to ensure their ordinances, rules or regulations relating to Pretreatment conform or adhere to City’s rules and requirements. When necessary, each Participating Agency shall adopt and routinely maintain Industrial Pretreatment and Source Control Program ordinances or resolutions which conform or adhere to the rules adopted by City. City shall not require that the Participating Agencies adopt any ordinances or amendments that are more stringent than ordinances or amendments that have been adopted by City.

5. IDENTIFICATION OF INDUSTRIAL USERS. Participating Agencies shall be responsible for notifying all known Industrial Users in their jurisdiction which are subject to regulation under the Act about the change from Participating Agency to City Pretreatment oversight, and the change from Participating Agency to City direct billing and enforcement, by no later than the first July 1 after the Effective Date of this Administrative Agreement. The cost of this notice will be borne by the individual Participating Agency providing the notice. Each Participating Agency shall create and maintain a reporting procedure mutually acceptable to the City and Participating Agency that includes a monthly report identifying potential new Industrial Users, including the name of the business, business address, type of business, and contact information. The reporting procedure shall also include a requirement that the Participating Agency promptly inform the City of a potential new Industrial User after the Participating Agency becomes aware of the new potential Industrial User. Each Participating Agency shall provide notice and a blank copy of the City’s Industrial Wastewater Control Program Industrial User Permit application to each identified potential new Industrial User. The notice may indicate that the Pretreatment program fees or charges billed and collected by City are in addition to any business license fees, permits or general wastewater service charges adopted and imposed by the Participating Agency. The notice shall be in a form approved from time to time by City. Thereafter, it shall be the responsibility of the City and the potential new Industrial User to coordinate regarding potential permitting and compliance, subject to the provisions in Section 2.8.6 of the SARA which govern permitting and permit compliance. New residential users, and dischargers of FOG, including Food Establishments, to the Participating Agencies’ collection system need not be reported to City, absent unusual circumstances. City and each Participating Agency shall meet and confer prior to making changes to administrative procedures unique to a Participating Agency relating to the identification of a potential new Industrial User.

6. INVENTORY. City shall create and maintain an inventory, that will be available to the Participating Agencies upon request, of all Industrial Users within the Metro System as soon as reasonably practicable after the Effective Date of this Administrative Agreement. If the City includes this inventory in an annual report, no additional inventory is required to be created. Upon request from a Participating Agency, the City will provide the location or locations, and the point of contact for each Industrial User. City shall update this inventory as often as reasonably practicable, but by no later than March 1 of each year. If a Participating Agency is aware of an Industrial User within its jurisdiction which is not noted on the City’s inventory, the Participating

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Agency shall promptly notify the City of the name of the business, business address, type of business and contact information so that the City may investigate as appropriate.

7. EVALUATION, PERMITTING AND MONITORING. It shall be City’s right and obligation to perform all evaluation, permitting, and monitoring required under the Act or any National Pretreatment Standards as required by City’s NPDES permit, for all Industrial Users discharging to the Metro System. City shall review and amend its Pretreatment Requirements as necessary, but no less than every five (5) years, to ensure full compliance with Federal and State Laws. The City shall follow the requirements set forth in Section 2.8.6 of the SARA with respect to permitting and permit compliance. The City shall not be responsible for evaluation, permitting, or monitoring requirements contained in a Participating Agency’s NPDES Permit.

8. DILIGENT ENFORCEMENT. City shall be responsible for identifying any Interference or other unlawful Discharges by Industrial Users in the Metro System, other than Discharges by Food Establishments and other FOG dischargers, and shall be responsible for initiating and administering enforcement actions related to the violation of any applicable laws, rules, or regulations associated with Discharge. The Participating Agencies hereby delegate authority to City to diligently enforce the provisions of Article 4, of Chapter 6, commencing with § 64.0100, et seq. of City’s Municipal Code, as may be updated or amended, against Industrial Users throughout the Metro System and in each Participating Agency’s service areas, and City hereby accepts these enforcement rights, liabilities and obligations; provided, however, that each Participating Agency shall undertake within their boundaries, primary enforcement of Food Establishment and FOG Discharges to protect the collection system within its jurisdiction and City shall have no responsibility therefor.
(a) City may, in its authority as provided herein, commence informal or formal enforcement procedures against a delinquent Industrial User according to the procedures set forth in the City’s then current Enforcement Response Plan. If City issues formal enforcement to an Industrial User in a Participating Agency’s jurisdiction, City shall carbon-copy that Participating Agency on the letter or transmission delivering the Compliance Order to the Industrial User in order to ensure the Participating Agency receives notice that formal enforcement procedures have commenced in its jurisdiction.
(b) City may revoke an Industrial User permit as provided in City’s Enforcement Response Plan. Before a Permit Revocation Notice is delivered to an Industrial User in a Participating Agency’s jurisdiction, City shall contact that Participating Agency to discuss and, if necessary, coordinate termination of the Industrial User’s services. City and the Participating Agency shall work together in identifying a termination of services date before City delivers a Permit Revocation Notice to the Industrial User.

9. ENFORCEMENT AND COOPERATION BY PARTICIPATING
AGENCIES. Nothing herein shall be construed as prohibiting any Participating Agency from enforcing its own Pretreatment ordinance within its jurisdiction, nor shall this agreement require the City to accept a delegation of authority to enforce a Pretreatment ordinance adopted by a

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Participating Agency that is more stringent or contains different requirements than the City’s.

Notwithstanding the delegation of authority to City, each Participating Agency retains authority to implement and enforce its own ordinance and to contract with other agencies for such purposes, including without limitation through a joint powers agreement. However, such enforcement shall be in cooperation and coordination with the City and shall not interfere with City’s enforcement.

Participating Agencies shall be solely responsible for enforcement of Discharges of FOG and Food Establishments within their service areas. In the event a Participating Agency adopts an ordinance more stringent than City’s, the Participating Agency may enforce the ordinance itself, or negotiate and enter into a separate agreement with City under which City will enforce the Participating Agency’s ordinance; provided, however, that any added costs of such enforcement will be borne by the Participating Agencies adopting the ordinance and shall not be borne by City or the other Participating Agencies. If the authority of City to act as agent of a Participating Agency is challenged by any person in a manner which may restrict or prevent City from performing the permitting, inspection, monitoring or enforcing of applicable provisions of law, the Participating Agency will cooperate in good faith with City and take such actions as are reasonably necessary to ensure effective implementation and enforcement of the Participating Agency’s ordinance and this Administrative Agreement.

10. COSTS FOR INDUSTRIAL WASTE CONTROL PROGRAM. City shall, not less often than every 5 years, adopt resolutions establishing fees, costs, charges and fines sufficient to recover the full cost of carrying out the Industrial Pretreatment and Source Control Program.

City shall directly bill Industrial Users to recover the costs and charges of the Industrial Pretreatment and Source Control Program, with additional billings sent directly to Industrial Users as needed for any enforcement costs (including related monitoring) incurred by City.

(a) Method for Allocating Industrial Pretreatment and Source Control Program Costs.

To establish the costs that are recovered from Industrial Users, the City will take the following steps during each annual budget process:

1. Determine the budgeted Total Program Costs for the upcoming Fiscal Year. The budgeted Trucked Waste Costs and budgeted General Benefits Costs shall be determined periodically, but no less often than every five (5) years, consistent with the cost-of-service study required by Section 10(d) below.

2. Deduct the budgeted Trucked Waste Costs and the amount of the budgeted General Benefits Costs from the budgeted Total Program Costs for the upcoming Fiscal Year.

In other words: (Total Program Costs) – (Trucked Waste Costs) – (General Benefits Costs) = (Industrial Users’ Costs)

3. Allocate the remaining costs to Industrial Users as Industrial Users’ Costs through permit fees and annual charges (“Permit Fees”).

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(b) If, at the end of a Fiscal Year, the actual Total Program Costs are determined to have exceeded the total amounts collected from Industrial Users’ Costs, Trucked Waste Costs, and General Benefit Costs, the remaining costs for that fiscal year shall be allocated to the City and the Participating Agencies with Industrial Users within their jurisdiction, in proportion to the total Permit Fees charged to Industrial Users in each Party’s jurisdiction compared to the total amount of Permit Fees charged for all Industrial Users for the applicable fiscal year. For example, if the Permit Fees charged for Industrial Users in the City of San Diego is $2,000,000, and the Permit Fees charged to all Industrial Users in that same fiscal year was $4,000,000 then fifty-percent (50%) of the remaining costs for that fiscal year ($2,000,000/$4,000,0000) will be allocated to the City of San Diego. The remaining Participating Agencies shall pay their respective proportionate shares according to the same methodology (Permit Fees charged for Industrial Users in the Participating Agencies Jurisdiction divided by the total Permit Fees charged for the fiscal year). See the table attached hereto as Attachment B for a more complete example. (c) City shall seek, to the maximum extent permitted by law, to ensure that Industrial Users’ Costs shall be paid for entirely by the Industrial Users regulated under the ordinances of City and Participating Agencies, through permit fees, fines, administrative penalties, inspection fees and other cost recovery mechanisms provided for under the ordinances of City and Participating Agencies, as applicable. However, this section is not intended to prevent the City from approving Industrial User fees based on a cost of service study that phases in fee increases to mitigate significant fee spikes, which may not be fully cost recoverable for a specific fiscal year as further discussed in subsection 10(h) below.
(d) Periodically, but no less often than every five (5) years, City shall cause to be performed a cost-of-service study or other appropriate study to ensure that permit fees, fines, administrative penalties, inspection fees and other cost recovery mechanisms, including General Benefit costs, are sufficient to fully fund the Industrial Pretreatment and Source Control Program.

The City will work with Metro JPA staff as part of this process in advance of any presentation to the Metro Commission or the San Diego City Council. The costs of this study shall be allocated based on the results of the study as either programmatic or administrative costs. (e) The City will bring a yearly update to the Metro Commission, after the release of the City’s Annual Comprehensive Financial Report (ACFR), that provides an update on the program and will include recorded revenues and expenses for the completed year. (f) City will provide notice of fee structure changes in accordance with the requirements of City’s Municipal Code as well as applicable state rules. (g) City will make a good faith effort to conduct outreach to Industrial Users regarding potential changes to the program fees.
(h) If the City proposes a fee structure for Industrial User fees based on a cost of service study that is not fully cost recoverable for a fiscal year (or years) that are part of the study in order to phase-in or mitigate significant fee increases for Industrial Users, the City will provide a presentation to the Metro Commission on the proposed fees and how it would impact the

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calculation in Sections 10(a) and 10(b) above. If the Metro Commission takes a vote regarding the proposed fee structure, City staff will provide that information to the City Council for the City Council’s consideration at the time the proposed fees are before the City Council for adoption, however, the City Council may choose to adopt the fee or not, in accordance with its legislative authority. If the fees adopted based on a cost of service study are set at an amount intended to recover the full cost of carrying out the Industrial Pretreatment and Source Control Program over the study period (but not to exceed five (5) years), no Participating Agency shall have a claim against the City for a failure to adopt fully cost recoverable fees. (i) City will in its sole discretion select and procure billing system software to use for this program.

11. TERMINATION OF INDIVIDUAL PRETREATMENT AGREEMENTS.

Any and all previously approved “Interjurisdictional Pretreatment Agreements” between City and any Participating Agency shall be terminated on the Effective Date of the SARA.

12. PERMIT OBLIGATIONS CONTINUE. Nothing herein shall be construed to relieve any Industrial User to the Metro System of the responsibility to obtain a permit for, and to comply with rules and regulations applicable to Industrial Users to the Metro System.

13. LIABILITIES. If a third-party liability, penalty or fine arises relating to City’s operation of this Industrial Pretreatment and Source Control Program, then all costs arising from the liability, penalty or fine shall be directly passed through to the Industrial User(s) found to be responsible for the liability, penalty or fine. If the Industrial User(s) responsible for the liability, penalty or fine cannot be ascertained or identified, or if the Industrial User(s) initiates bankruptcy proceedings or is declared bankrupt, then the liability, penalty or fine shall be absorbed as part of the Total Program Costs, and shall be allocated among the City and the Participating Agencies in accordance with the methodology described in Section 10(b). The Participating Agencies shall not be responsible for any liability, penalty or fine, or portion thereof, that arises from City’s gross negligence or willful misconduct.

14. DELEGATION OF AMENDMENT OR TERMINATION AUTHORITY TO METRO COMMISSION. The Participating Agencies hereby delegate to the Metro Commission the authority to approve, by a vote of no less than two-thirds of the members of the Metro Commission at a duly noticed public meeting (in other words, upon the affirmative vote of no less than eight of the twelve members of the Metro Commission, irrespective of how many Metro Commissioners are present at the meeting), any amendments or supplements to this Administrative Agreement, including, if necessary, termination of this Administrative Agreement.

15. MISCELLANEOUS PROVISIONS.
(a) A Participating Agency’s local limits may be more stringent than the City’s Local Limits, but may not be less stringent.

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(b) City is performing services under this Administrative Agreement as an independent contractor and is not an employee of any of the Participating Agencies. No employee or agent of City shall be considered an employee of any of the Participating Agencies. City shall be and remain responsible for all payroll, compensation, employee benefits, and employment administration of any of its employees who perform services under this Administrative Agreement. (c) Books, documents, papers, accounting records, and other evidence pertaining to costs and revenues related to this Administrative Agreement shall be maintained by City and made available Participating Agencies to the same extent as under the SARA. (d) If any term of this Administrative Agreement shall be held invalid in any judicial action, the remaining terms shall be unaffected.
(e) Other agreements by and between the Parties to this Administrative Agreement or any other entity are neither prohibited nor modified in any manner by execution of this Administrative Agreement, except as expressly provided herein. (f) Except as otherwise provided in this Administrative Agreement, the rights and obligations of any Party to this Administrative Agreement shall not be assignable or transferable without the consent of the governing body of each Party hereto; provided, however, that this provision shall not affect City’s ability to contract with a third party to provide services related to this Administrative Agreement.
(g) This Administrative Agreement is made in the State of California, under the Constitution and laws of such State, and shall be construed and enforced in accordance with the laws of such State.
(h) This Administrative Agreement shall be binding upon and shall inure to the benefit of the successors of the Parties hereto.
(i) The Parties are hereby authorized to take any and all legal or equitable actions, including but not limited to an injunction and specific performance, necessary or permitted by law to enforce this Administrative Agreement.
(j) Except as otherwise may be provided in this Administrative Agreement, neither this Administrative Agreement nor any provision hereof may be modified or amended except by a written instrument approved pursuant to Section 15 of the SARA. In the event of any conflict between the SARA and this Administrative Agreement, the terms of the SARA shall control. (k) This Administrative Agreement may be executed in counterparts, each of which shall constitute an original and all of which together shall constitute one and the same agreement. (l) All the covenants contained in this Administrative Agreement are for the express benefit of each and all such Parties. This Administrative Agreement is not intended to benefit any third parties, and any third-party beneficiaries are expressly disclaimed.

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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:

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ATTACHMENT A
Ordinance of the [Member Agency] Amending Ordinance [xxx] Delegating Authority to City of San Diego to Enforce Regulations for the Discharge of Wastewater to Sewerage Facilities, Pretreatment and Source Control Program
WHEREAS, [Participating Agency] has adopted Ordinance/Resolution [number], establishing a local sewer use ordinance, including a pretreatment and source control program to control discharges from all industrial and other users of its wastewater collection and treatment system pursuant to the requirements of 40 CFR Part 403 and California law; and WHEREAS, [Participating Agency] has contracted with City of San Diego to manage, treat and dispose of wastewater discharged within [Participating Agency]’s boundaries and conveyed to the Metropolitan Sewerage System, a regional wastewater system owned by City of San Diego and in which [Participating Agency] owns contract capacity; and WHEREAS, Government Code sections 6502 and 6513, and [Water Code section, etc.] provide authority for [Participating Agency] to contract with City of San Diego for such purposes and to delegate to City of San Diego primary responsibility for implementation and enforcement of Ordinance [number], as may be amended from time to time; and WHEREAS, [Participating Agency] desires City of San Diego to assume primary responsibility for implementation and enforcement of [Participating Agency] ’s regulations for the control of discharges to the Metropolitan Sewerage System from all industrial and other users of its wastewater collection and treatment system pursuant to the requirements of 40 CFR Part 403 and California law, other than food establishments and dischargers of fats, oils and grease for which [Participating Agency] retains primary responsibility, and the City of San Diego shall not be responsible for, and does not accept authority or responsibility to inspect, monitor or enforce any source control program requirements for any Participating Agency’s NPDES permits.

NOW, THEREFORE BE IT ORDAINED:

1. Notwithstanding any provision of Ordinance [number] to the contrary, the [City council/Board of Directors], hereby delegates to City of San Diego authority to implement and enforce the terms and conditions of the Industrial Waste Discharge Pretreatment and Enhanced Source Control Program in [Participating Agency’]s jurisdiction as the agent of [Participating Agency], to be effective upon the date of execution of the ADMINISTRATIVE 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 PROGRAM dated [insert], as may be amended from time to time, to the

SECOND AMENDED AND RESTATED REGIONAL WASTEWATER DISPOSAL

AGREEMENT BETWEEN CITY OF SAN DIEGO AND THE PARTICIPATING AGENCIES IN THE METROPOLITAN SEWERAGE SYSTEM.

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2. A copy of this amendment shall be forwarded to City of San Diego by the clerk/secretary forthwith upon its adoption.

Approved and adopted by the following vote this ___ day of ____, 2025:

Ayes:

Noes:

Absent
Abstain:
[add signature lines for chair of governing body and secretary/clerk]

DATE: September 8, 2026
TO: Mayor and Members of the City Council
FROM: Megan Wiegelman, City Clerk
VIA: Greg Humora, City Manager
SUBJECT: CONSIDERATION OF AN ORDINANCE AMENDING THE ZONING MAP

FOR PROPERTIES LOCATED ON LA PERLA WAY
At the July 28, 2026, Council meeting, the Council voted 5–0 to approve the introduction and first reading of an ordinance amending the Zoning Map of Title 24 of the La Mesa Municipal Code to designate properties addressed as 4821, 4831, and 4841 La Perla Way (APNs 495-423-10, 495-423-13, and 495-423-14) Semi-Rural Estate/Scenic Preservation Overlay (R1E-P).

Staff recommends the Council approve the second reading and adoption of the Ordinance.

Attachment: A. Draft Ordinance

ATTACHMENT A
ORDINANCE NO. 2026-XXXX

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA MESA AMENDING THE ZONING MAP OF TITLE 24 OF THE LA MESA

MUNICIPAL CODE TO DESIGNATE PROPERTIES ADDRESSED AS
4821, 4831, AND 4841 LA PERLA WAY (APNs 495-423-10, 495-423-13, AND 495-423-14) SEMI-RURAL ESTATE/SCENIC PRESERVATION
OVERLAY (R1E-P)
WHEREAS, the City of La Mesa has a strategic goal to promote a high quality of life that current and future generations can afford to call home; WHEREAS, the property owners of three parcels located at 4821, 4831, and 4841 Le Perla Way (APN 495-423-10, 495-423-13, and 495-423-14), have submitted an application for an annexation, general plan amendment, and zoning ordinance amendment (Project 2025-0497);
WHEREAS, the property owners have requested jurisdictional boundary change through annexation to connect to the City’s sewer system; WHEREAS, the properties are currently located within the unincorporated area of San Diego County, adjacent to the City of La Mesa boundary; WHEREAS, upon annexation, the Property would detach from the County of San Diego and the San Miguel Consolidated Fire Protection District and would be incorporated into the City of La Mesa jurisdictional boundary;
WHEREAS, a zoning ordinance amendment is required to amend the Zoning Map, made a part of the Municipal Code by Ordinance No. 2479, to reflect City zoning; WHEREAS, the three properties range in size from 0.47 acres to 0.84 acres in area (1.87 acres in total);
WHEREAS, the R1E-P zone is typically assigned to accommodate the large lot residential estate development in the Grossmont-Mt. Helix area with development occurring at densities of one to two dwelling units per acre; WHEREAS, the properties are consistent the predominant land use patterns in the area and with the City zoning designation of R1E-P, which would conform to a General Plan Land Use designation of Rural Residential;
WHEREAS, the project was reviewed pursuant to the California Environmental Quality Act (CEQA) and was determined to be exempt from environmental review;

WHEREAS, on June 17, 2026, the Planning Commission held a noticed public hearing, accepted public testimony, and adopted Resolution PC-2026-07 recommending that Council approve the proposed Zone Map amendment; and WHEREAS, the Council did hold a public hearing on July 28, 2026, and accepted public testimony in considering Project No. 2025-0497.

NOW, THEREFORE, BE IT AND IT IS HEREBY ORDAINED by the City Council of the City of La Mesa, California as follows:

SECTION 1: That the Zone Map of Title 24 of the La Mesa Municipal Code be amended, designating the Property to R1E-P (Semi-Rural Estate/Scenic Preservation Overlay) zone, subject to the provisions contained in Ordinance No. 2185.

SECTION 2: This Ordinance shall be effective 30 days after its adoption and the City Clerk shall certify to the adoption of this Ordinance. The City Clerk is hereby authorized to use summary publication procedures pursuant to Government Code Section 36993 utilizing a newspaper of general circulation published in the City of La Mesa.

INTRODUCED AND FIRST READ at a Regular meeting of the City Council of the City of La Mesa, California, held on the 28th day of July 2026, and thereafter PASSED AND ADOPTED at a Regular meeting of said City Council held the 8 th day of September
2026, by the following vote, to wit:

AYES:

NOES:

ABSENT:

APPROVED
MARK ARAPOSTATHIS, Mayor
ATTEST:

MEGAN WIEGELMAN, CMC, City Clerk

CERTIFICATE OF CITY CLERK
I, MEGAN WIEGELMAN, CMC, City Clerk of the City of La Mesa, California, do hereby certify the foregoing to be true and exact copy of Ordinance No. 2026-xxxx, duly passed and adopted by the City Council of said City on the date and by the vote therein recited.

MEGAN WIEGELMAN, CMC, City Clerk
(SEAL OF CITY)

DATE: September 8, 2026
TO: Mayor and Members of the City Council
FROM: Mayor Mark Arapostathis and Councilmember Genevieve Suzuki VIA: Greg Humora, City Manager
SUBJECT: CITY ATTORNEY APPOINTMENT AND EMPLOYMENT AGREEMENT Recommendation:

Adopt a Resolution of the City Council of the City of La Mesa appointing the City Attorney, authorizing the Mayor to execute an employment agreement with the City Attorney, and amending the Fiscal Year 2027 Compensation Plan.

Background:

The City Attorney position will be vacant on September 12, 2026 due to the retirement of incumbent Glenn Sabine. Following the completion of an executive recruitment process and based on her qualifications and experience, the City Council desires to appoint Tara Mazzanti to the position of City Attorney. Following successful negotiations, Ms. Mazzanti has accepted the appointment to the position of City Attorney, effective October 13, 2026.

Mayor to Read Prior to Taking Final Action:

Pursuant to Government Code section 5493(c)(3), the Key Terms of the employment agreement are as follows:
 The agreement is effective October 13, 2026;
 The annual base salary is $292,000;
 The City Attorney shall receive the benefits provided in the Summary of Management Group Benefits except as herein provided;
 The City Attorney shall receive an automobile allowance in the total amount of $6,000 annually;
 The City shall pay the maximum annually allowed to the City’s 457 deferred compensation program on behalf of City Attorney in equal proportionate amounts each pay period;

 The City Attorney shall accrue 180 hours of vacation each year and receive an advance of 80 hours of vacation available to her on her start date; and  If the City terminates the Employment Agreement early, without cause, the Agreement provides for a severance payment equivalent to six months base salary.

Sufficient funds are available in the Fiscal Year 2027 Budget for expenses associated with the City Attorney appointment. Approval of the Fiscal Year 2027 Compensation Plan to reflect the updated salary of the City Attorney.

Attachments:

A. Resolution appointing the City Attorney, authorizing the Mayor to execute the employment agreement with City Attorney Tara Mazzanti, and amending the Fiscal Year 2027 Compensation Plan.
i. Exhibit 1: Employment Agreement
ii. Exhibit 2: Fiscal Year 2027 Compensation Plan

RESOLUTION NO. 2026-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA MESA

APPOINTING THE CITY ATTORNEY AND AUTHORIZING THE MAYOR TO

EXECUTE THE EMPLOYMENT AGREEMENT WITH CITY ATTORNEY

TARA MAZZANTI
WHEREAS, the City of La Mesa completed an executive recruitment process to fill the City Attorney position following the announced retirement of incumbent Glenn Sabine; WHEREAS, based on qualifications and experience of the selected candidate, the City of La Mesa hereby appoints Tara Mazzanti as City Attorney effective October 13, 2026; and
WHEREAS, California Government Code Section 20636 and California Code of Regulations Section 570.5 require California Public Employee Retirement System member agencies to maintain and publicly post publicly available pay schedules.

NOW, THEREFORE, BE IT AND IT IS HEREBY RESOLVED by the City Council of the City of La Mesa, California, as follows:

1. The City Council of the City of La Mesa hereby appoints Tara Mazzanti as City Attorney effective October 13, 2026.

2. The City Council of the City of La Mesa authorizes the Mayor to execute an Employment Agreement with the City Attorney, attached hereto as Exhibit “1”.

3. The City of La Mesa approves the City of La Mesa Compensation Plan for Fiscal Year 2027 to update the salary range for City Attorney. A copy of the compensation plan is attached hereto as Exhibit “2” and incorporated by reference as though fully set forth herein.

PASSED AND ADOPTED at a Regular meeting of the City Council of the City of La Mesa, California, held the 8
th day of September 2026, by the following vote, to wit:

AYES:

NOES:

ABSENT:

CERTIFICATE OF CITY CLERK
I, MEGAN WIEGELMAN, City Clerk of the City of La Mesa, California, do hereby certify the foregoing to be a true and exact copy of Resolution No. 2026- , duly passed and adopted by the City Council of said City on the date and by the vote therein recited.

MEGAN WIEGELMAN, CMC, City Clerk
(SEAL OF CITY)

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EMPLOYMENT AGREEMENT BY AND BETWEEN THE CITY OF LA MESA,

CALIFORNIA AND TARA MAZZANTI
THIS AGREEMENT is entered into by and between the City of La Mesa, a municipal corporation (the "City") and Tara Mazzanti, this 8th day of September 2026, and is made in reference to the following facts:

The City, by and through the City Council of the City of La Mesa (the "City Council") desires to employ the services of Tara Mazzanti as a full-time City Attorney for the City. Tara Mazzanti (or "City Attorney") desires and agrees to serve in such capacity commencing October 13, 2026, pursuant to this Agreement.

THEREFORE, IT IS AGREED AS FOLLOWS:

1.0 EMPLOYMENT

1.1 The City Council agrees that Tara Mazzanti shall serve as city attorney for the City of La Mesa on a full-time basis pursuant to the terms and conditions of this Agreement.

1.2 The duties, responsibilities and obligations relating to the position of full-time city attorney of the City of La Mesa shall be contained in Exhibit "A" to this Agreement and is hereby incorporated by reference as though fully set forth herein.

1.3 City Attorney hereby agrees to perform the services generally associated with the position of city attorney in the State of California, and as required pursuant to this Agreement, at the pleasure of the City Council.

1.4 So long as City Attorney is providing services to the City, City Attorney shall use her best efforts in performing her duties, responsibilities and obligations pursuant to this Agreement.

EXHIBIT 1

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2.0 TERM OF EMPLOYMENT
The City Attorney shall serve at the pleasure of the City Council and may have her services terminated earlier by a vote of the Council in accordance with the provisions of the Municipal Code and this Agreement.

3.0 SCHEDULED EVALUATIONS OF PERFORMANCE
At the one (1) year anniversary of the commencement of this Agreement and annually thereafter, the City Council may conduct an evaluation of City Attorney's performance and discuss the results of the same with City Attorney. This evaluation may determine, among other things, entitlement to any salary increase (including merit and/or cost of living) or bonus for the accomplishment of the City Council’s specific goals, or for exceptional results or performance above the expected fulfillment of the City Attorney’s job obligations.

4.0 SALARY AND BENEFITS

4.1 Salary. Effective upon the commencement date of this Agreement, City Attorney shall receive a base total compensation of two hundred and ninety-two thousand dollars ($292,000) payable in equal installments at the same time as other employees oftheCity are paid. The amount ofCity Attorney's salary as described in this Section shall not include all City contributions toward those other benefits otherwise specified in this Agreement.

4.2 Deferred Compensation. In addition to the base salary paid by the City to City Attorney, City agrees to pay the maximum annually authorized by law into the City’s 457 deferred compensation program on City Attorney's behalf in equal proportionate amounts each pay period and to transfer ownership to succeeding employers upon City Attorney's resignation or termination. No match is required of City Attorney to receive this benefit. This benefit does not include age-related “catch-up” benefits.

4.3 Vacation Benefit. City Attorney shall accrue one hundred and eighty (180) hours of vacation during each twelve (12) months worked, or 6.923 hours per pay period. Vacation accrual shall be in accordance with the rules and policies set forth in the Summary of Management Group Benefits and in the most recent Compensation Plan on file with the City Manager except as herein provided. In addition, City Attorney will receive an advance of 80 hours of vacation leave to

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be posted and available on her start date.

4.4 Holiday, Administrative Leave and Sick Leave. All provisions of the rules, regulations and ordinances of the City relating to sick leave, holidays, and administrative leave and vacations as they may now exist, or hereinafter may be amended, shall apply to the City Attorney except as herein provided.

4.5Retirement Benefits. The City contracts with California Public Employees’ Retirement System (CalPERS) for retirement benefits. City Attorney will be entitled to those benefits under the terms of the contract between the City and CalPERS. The applicable retirement formula will be determined by CalPERS after the City has enrolled Employee into CalPERS. If Employee is deemed a classic member, Employee shall pay the normal member contribution in accordance with the City’s policies. If Employee is deemed a new member, Employee shall pay any and all contributions required of new members under the provisions of the California Public Employees’ Pension Reform Act of 2013.

Employee shall complete the “Reciprocal Self-Certification Form” and submit the form to the City within 10 business days after employment has commenced.

4.6 Automobile Allowance. City Attorney shall receive an auto allowance in the amount of five hundred dollars ($500) per month for the use of her personal vehicle in conjunction with the performance of City business.

4.7 Health Benefits. City Attorney shall receive benefits and options the same as that of other management employees.

4.8 Disability/Life Insurance Benefits. City agrees to obtain and maintain disability income and life insurance policies providing benefits to City Attorney equal to those provided other management employees.

4.9 Annual Review of Salary/Benefits. In conjunction with any annual performance evaluation of the City Attorney, the City Council may conduct an annual review of City Attorney's salary and benefits.

4.10Relocation Reimbursement: The City shall provide reimbursement for relocation expenses incurred by City Attorney in connection with establishing residence within reasonable commuting distance of La Mesa. Reimbursement shall be provided up to a maximum of $5,000 in allowable relocation costs.

Eligible expenses may include moving services, transportation of household goods, temporary housing, and other costs directly related to relocation.

Reimbursement will be made upon submission of appropriate documentation and receipts and must be requested within one year of City Attorney’s start date.

Any reimbursement is subject to applicable City policies and procedures.

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5.0 PROFESSIONAL DEVELOPMENT; MEMBERSHIPS
The City Council may approve, as part of City Attorney's professional development, leave time and an expense allowance to allow City Attorney to attend meetings and conferences, such as the League of California Cities and other activities the City Council deems appropriate. City shall pay for or otherwise reimburse City Attorney for any costs related to maintaining City Attorney's California State Bar status in good standing (including membership and member continuing education requirements of the bar).

6.0TERMINATION FOR CAUSE
City shall have the right to terminate this Agreement immediately for "cause" and consequently City Attorney shall not be entitled to severance compensation. The phrase "for cause," for purposes of this Agreement, shall mean (a) conviction of, plea of nolo contendere or plea of guilty to a felony; (b) conviction of, plea of nolo contendere or plea of guilty to any illegal act involving moral turpitude or personal gain; (c) willful misconduct in office; (d) disciplinary action by the California Bar or (e) failure to perform the duties of City Attorney pursuant to this Agreement.

7.0TERMINATION FOR CONVENIENCE; CITY OR CITY ATTORNEY
City shall have the right to terminate this Agreement at any time for the City’s convenience. This means that, except for removal of the City Attorney for cause, the City Attorney shall receive six (6) months of severance pay to be computed at the highest salary received by the City Attorney during her tenure with the City. In said event, the City Attorney expressly waives any and all other rights with respect to termination except for any payoff for all leave earned subject to all rights and limitations as that of any other management employee.

City Attorney shall have the right to terminate this Agreement upon sixty (60) days prior written notice. In such an event, City Attorney receives no severance pay compensation.

If the City Council acts in a manner such that the California Rules of Professional Conduct of lawyers requires the City Attorney to withdraw from representing the City of La Mesa, then the mandatory withdrawal will be treated as a termination without cause for purposes of this Agreement.

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8.0 GENERAL PROVISIONS

8.1 Entire Agreement. This Agreement shall constitute the entire agreement between the parties hereto.

8.2 Severability. If any provisions, or any provision hereof, contained in this Agreement is held to be unconstitutional, invalid, or unenforceable, the remainder of this Agreement, or any portion thereof, shall be deemed severable, shall not be affected, and shall remain in full force and effect.

8.3 Hours of Work. It is recognized that City Attorney must devote a great deal of time to perform the duties pursuant to this Agreement, including time spent outside of normal City business office hours, and to that end City Attorney will be allowed to take time off as she shall deem appropriate during normal City business office hours. City Attorney shall be evaluated on work performed, not hours worked.

8.4 Business Expenses. The City agrees to pay City-related and non-personal business expenses. The Finance Director is hereby authorized to disburse such monies upon receipt of duly executed expenses or petty cash vouchers, receipts, statements or personal affidavits, as and up to the amount budgeted.

8.5 Non-Reduction of Benefits.

8.5.1 City shall not at any time during the term of this Agreement or any extension hereof reduce the salary, compensation or other financial benefits of City Attorney, except to the degree of such a reduction for all employees of the City and/or management employees.

8.5.2 All provisions of the rules and regulations of the City relating to vacation, administrative leave and sick leave, retirement, pension system contribution, holidays, and other fringe benefits and working conditions as they now exist or hereafter may be amended, also shall apply to City Attorney as they would to other management employees in addition to the benefits enumerated specifically for the benefit of City Attorney as herein provided.

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8.6 Indemnification.

City shall defend, hold harmless and indemnify City Attorney against any tort, professional liability claim, or demand or other legal action, whether groundless or otherwise, arising out of or relating to any alleged negligent act or omission occurring in the performance of City Attorney's prescribed duties. pursuant to this Agreement. If City compromises or settles any such claim or suit, it shall pay the amount of such settlement including any interest or attorneys’ fees and costs that may be applicable, or shall pay any judgment rendered in such action.

IN WITNESS WHEREOF, the City Council of the City of La Mesa, California, has authorized this Agreement to be signed and executed this 8th day of September 2026.

ATTEST:
____________________________ ____________________________ City Clerk Mark Arapostathis, Mayor
City of La Mesa
____________________________
Tara Mazzanti, City Attorney
APPROVED TO FORM:
_____________________________
Glenn Sabine

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Attachment: Exhibit A – City Attorney Duties and Scope of Services EXHIBIT "A"

CITY ATTORNEY DUTIES AND SCOPE OF SERVICES
Except as provided elsewhere in this Agreement, City Attorney shall provide, in a professional manner, all of the usual, customary and necessary services, normally provided by a city attorney to City as those services are required. The scope of services to be provided shall include the following:

1. Attendance at City Council Meetings and other meetings as may be required by the City Council;

2. Attendance at departmental meetings, staff meetings or committee meetings deemed necessary and appropriate, or as requested by the City Manager or City Council;

3. Monitoring and advising the City Council and staff of legislation and case law affecting the City;

4. Representing the City in the administration of all claims and litigation filed by or against it; provided, however, that special counsel may be retained by the City Attorney in her discretion when necessary, practical or convenient for litigation and advisory work, as well as special projects or circumstances warranting special expertise; further provided that, outside counsel shall be retained in the event of a conflict of interest which disqualifies City Attorney from such representation; Primarily responsible for researching, preparation or review of all written opinions, ordinances, resolutions, agreements, leases, public works contracts, and other documents of a legal nature necessary or requested by the City Manager or City Council and in coordination with the City’s departments; Primarily responsible for the provision of all legal advice on behalf of the Council members, City Manager, Commissioners, department heads and other designated personnel as appropriate; Commencement and prosecution of all criminal actions necessary and appropriate to enforce municipal ordinances, including enforcement through administrative proceedings; Rendering advice and assistance to City on labor relations matters,

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reviewing memoranda of understanding or other labor agreements, drafting implementing legislation or other pertinent documents and representation of City before mediators or arbitrators or personnel appeals boards on matters arising from memoranda of understanding of the City personnel rules;

5. Rendering advice and assistance in the administration of City's general liability risk management and insurance programs;

6. Monitoring activities of any special counsel retained by City Attorney on behalf of City; and

7. Primarily responsible for providing conflict of interest assistance to City Council and assisting Council members and staff in seeking advice from the California Fair Political Practices Commission, including potential Government Code 1090 advice.

Monthly Hourly Monthly Hourly Monthly Hourly Monthly Hourly Monthly Hourly Monthly Hourly Monthly Hourly City Councilmember 1,900 Elected 1084 9410 2
City Treasurer 1,100 Elected 1090 8810 1Mayor 3,800 Elected 1234 9410 3 Monthly Hourly Monthly Hourly Monthly Hourly Monthly Hourly Monthly Hourly Monthly Hourly Monthly Hourly Accounting Technician - Confidential 6,130 35.37 6,437 37.14 6,759 38.99 7,097 40.94 7,452 42.99 7,825 45.14 8,216 47.40 Conf 1013 8810 1 Administrative Analyst I - Confidential 6,463 37.29 6,786 39.15 7,125 41.11 7,481 43.16 7,855 45.32 8,248 47.58 8,660 49.96 Conf 1003 8810 6Administrative Analyst II - Confidential 7,115 41.05 7,471 43.10 7,845 45.26 8,237 47.52 8,649 49.90 9,081 52.39 9,535 55.01 Conf 1006 8810 7Administrative Coordinator -Confidential 5,733 33.08 6,020 34.73 6,321 36.47 6,637 38.29 6,969 40.21 7,317 42.21 7,683 44.33 Conf 1025 8810 5Executive Assistant to the City Manager 6,781 39.12 7,120 41.08 7,476 43.13 7,850 45.29 8,243 47.56 8,655 49.93 9,088 52.43 Conf 1339 8810 2Human Resources Analyst 7,542 43.51 7,919 45.69 8,315 47.97 8,731 50.37 9,168 52.89 9,626 55.53 10,107 58.31 Conf 1203 8810 3Human Resources Assistant 4,425 25.53 4,646 26.80 4,878 28.14 5,122 29.55 5,378 31.03 5,647 32.58 5,929 34.21 Conf 1205 8810 4Human Resources Technician 5,866 33.84 6,159 35.53 6,467 37.31 6,790 39.17 7,130 41.13 7,487 43.19 7,861 45.35 Conf 1202 8810 8 Monthly Hourly Monthly Hourly Monthly Hourly Monthly Hourly Monthly Hourly Monthly Hourly Monthly Hourly Assistant City Manager 16,829 97.09 101.95 17,671 18,555 107.05 19,483 112.40 118.02 20,457 NS Mgmt 1036 9410 Assistant Director of Community Development 12,361 71.31 74.88 12,979 13,628 78.62 14,309 82.55 86.68 15,024 NS Mgmt 1146 9410Assistant Director of Public Works 12,361 71.31 74.88 12,979 13,628 78.62 14,309 82.55 86.68 15,024 NS Mgmt 1145 9410Assistant to the City Manager 10,346 59.69 62.67 10,863 11,406 65.80 11,976 69.09 72.55 12,575 NS Mgmt 1037 9410Building Inspection Supervisor 8,726 50.34 52.86 9,162 9,620 55.50 10,101 58.28 61.19 10,606 NS Mgmt 1055 9410Building Official 12,142 70.05 73.55 12,749 13,386 77.23 14,055 81.09 85.14 14,758 NS Mgmt 1069 9410City Attorney 140.39 24,334 NS Mgmt 1078 8810City Clerk 11,084 63.94 67.14 11,638 12,220 70.50 12,831 74.03 77.73 13,473 NS Mgmt 1081 8810City Engineer 12,361 71.31 74.88 12,979 13,628 78.62 14,309 82.55 86.68 15,024 NS Mgmt 1086 9410City Manager 150.73 26,127 NS Mgmt 1087 9410Communications Manager 10,346 59.69 62.67 10,863 11,406 65.80 11,976 69.09 72.55 12,575 NS Mgmt 1106 8810 POLICE MGMT EFFECTIVE: 7/5/2026, AS AMENDED & APPROVED 06/23/2026 Range #
Step E Step F Step G
Payroll Group
Step C Step D
City of La Mesa
Compensation Plan - Elected Officials FY 2027
EFFECTIVE: 12/10/24, AS AMENDED & APPROVED on 11/26/2024 City of La Mesa
Compensation Plan - Confidential Staff FY 2027
EFFECTIVE: 7/3/2026, AS AMENDED & APPROVED on 6/23/2026 City of La Mesa
Compensation Plan - Management Groups FY 2027
NS MGMT & FIRE MGMT EFFECTIVE: 7/3/26, AS AMENDED & APPROVED on 6/23/26 Class Title
Step A Step B
Class Title
Step A Step B Step C Step D
Class
Code WC Code
Salary Established by Contract Amended 8/12/25 (Effective 7/1/25) Salary Established by Contract Amended 9/8/2026 (Effective 10/13/2026) Range #
Step E Step F Step G
Payroll Group Class Code WC Code
Class Title
Step A Step B Step C Step D
Salary established by ordinance 2023-2905 (Eff 12/10/24)Salary established by ordinance 2023-2905 (Eff 12/10/24)Salary established by ordinance 2023-2905 (Eff 12/10/24) Range #
Step E Step F Step G
Payroll Group Class Code WC Code

Monthly Hourly Monthly Hourly Monthly Hourly Monthly Hourly Monthly Hourly Monthly Hourly Monthly Hourly POLICE MGMT EFFECTIVE: 7/5/2026, AS AMENDED & APPROVED 06/23/2026 Range #
Step E Step F Step G
Payroll Group
City of La Mesa
Compensation Plan - Management Groups FY 2027
NS MGMT & FIRE MGMT EFFECTIVE: 7/3/26, AS AMENDED & APPROVED on 6/23/26 Class Title
Step A Step B Step C Step D
Class
Code WC Code
Parks and Recreation Manager 10,346 59.69 62.67 10,863 11,406 65.80 11,976 69.09 72.55 12,575 NS Mgmt 1140 9410Deputy Fire Chief 15,002 86.55 90.88 15,752 16,540 95.42 17,367 100.19 105.20 18,235 NS Mgmt 1178 7706Director of Community Development 14,890 85.90 90.20 15,634 16,416 94.71 17,237 99.44 104.42 18,099 NS Mgmt 1138 9410Director of Parks and Recreation 14,890 85.90 90.20 15,634 16,416 94.71 17,237 99.44 104.42 18,099 NS Mgmt 1141 9410Director of Finance 14,890 85.90 90.20 15,634 16,416 94.71 17,237 99.44 104.42 18,099 NS Mgmt 1142 9410Director of Human Resources 14,890 85.90 90.20 15,634 16,416 94.71 17,237 99.44 104.42 18,099 NS Mgmt 1151 9410Director of Public Works 14,890 85.90 90.20 15,634 16,416 94.71 17,237 99.44 104.42 18,099 NS Mgmt 1143 9410Director of Public Works / CityEngineer 14,890 85.90 90.20 15,634 16,416 94.71 17,237 99.44 104.42 18,099 NS Mgmt 1144 9410Engineering Project Manager 10,456 60.32 63.34 10,979 11,528 66.51 12,104 69.83 73.32 12,709 NS Mgmt 1153 9410Environmental Manager 10,346 59.69 62.67 10,863 11,406 65.80 11,976 69.09 72.55 12,575 NS Mgmt 1158 9420Finance Manager 10,449 60.29 63.30 10,972 11,521 66.47 12,097 69.79 73.28 12,702 NS Mgmt 1172 8810Fire Chief 17,458 100.72 105.76 18,331 19,248 111.05 20,210 116.60 122.43 21,221 FIRE Mgmt 1177 7706Fire Division Chief 13,188 76.08 79.89 13,847 14,539 83.88 15,266 88.07 92.48 16,029 FIRE Mgmt 1180 7706Fire Marshal 13,442 77.55 81.43 14,114 14,820 85.50 15,561 89.78 94.26 16,339 NS Mgmt 1183 9410Human Resources Manager 10,346 59.69 62.67 10,863 11,406 65.80 11,976 69.09 72.55 12,575 NS Mgmt 1201 8810Human Resources/Risk Manager 11,384 65.68 68.96 11,953 12,551 72.41 13,179 76.03 79.83 13,838 NS Mgmt 1200 8810Information Technology Manager 10,449 60.29 63.30 10,972 11,521 66.47 12,097 69.79 73.28 12,702 NS Mgmt 1207 9410Management Analyst 7,360 42.46 44.58 7,728 8,114 46.81 8,520 49.15 51.61 8,946 NS Mgmt 1231 8810Police Captain 16,802 96.93 101.78 17,642 18,524 106.87 19,450 112.21 117.83 20,423 Police Mgmt 1267 7720Police Chief 20,056 115.71 121.49 21,059 22,112 127.57 23,218 133.95 140.65 24,379 Police Mgmt 1270 7720Police Lieutenant 14,571 84.06 88.27 15,300 16,065 92.68 16,868 97.32 102.18 17,711 Police Mgmt 1279 7720Police Services Manager 59.69 10,346 62.67 10,863 11,406 65.80 11,976 69.09 72.55 12,575 NS Mgmt 1290 9410Public Works Operations Manager 59.69 10,346 62.67 10,863 11,406 65.80 11,976 69.09 72.55 12,575 NS Mgmt 1314 9420Purchasing Officer 48.84 8,465 51.28 8,888 9,332 53.84 9,799 56.53 59.36 10,289 NS Mgmt 1315 8810Records Program Manager 42.46 7,360 44.58 7,728 8,114 46.81 8,520 49.15 51.61 8,946 NS Mgmt 1318 8810Risk Manager 59.69 10,346 62.67 10,863 11,406 65.80 11,976 69.09 72.55 12,575 NS Mgmt 1333 9410Senior Accountant 48.84 8,465 51.28 8,888 9,332 53.84 9,799 56.53 59.36 10,289 NS Mgmt 1342 8810Senior Management Analyst 48.84 8,465 51.28 8,888 9,332 53.84 9,799 56.53 59.36 10,289 NS Mgmt 1348 8810Senior Planner 58.17 10,083 61.08 10,587 11,116 64.13 11,672 67.34 70.71 12,256 NS Mgmt 1351 9410Superintendent of Public Works 54.62 9,468 57.35 9,941 10,438 60.22 10,960 63.23 66.39 11,508 NS Mgmt 1357 9420

REPORT to the MAYOR and MEMBERS of the CITY COUNCIL
From the CITY MANAGER
DATE: September 8, 2026
SUBJECT: APPROVAL OF AGREEMENT WITH GLENN SABINE

FOR INTERIM CITY ATTORNEY SERVICES
DESCRIPTION: RESOLUTION APPROVING EXCEPTION TO THE 180-

DAY WAITING PERIOD TO HIRE RETIRED ANNUITANT
UNDER GOV. CODE SECTIONS 7522.56, 21221(H)
AND 21224
ISSUING DEPARTMENT: Human Resources
Recommendation:

That the City Council adopt the Resolution approving an exception to the 180-day waiting period to hire a CalPERS retired annuitant in accordance with Government Code §7522.56, 21221(h) and 21224 through October 31, 2026.

Fiscal Impact:

Costs associated with interim services are budgeted within the Fiscal Year 2027 Budget. Mr. Sabine’s compensation will be tied to the hourly rate paid to comparable position. No additional benefit costs are included, consistent with CalPERS retired annuitant rules.

City’s Strategic Goals:
 Nurture an organizational culture where employees are recognized for the delivery of high-quality services to the community.
 Maintain a community where residents and visitors feel safe.  Ensure a strong financial outlook through careful planning, sustainable service levels, and fiscal sustainability.

Report to Mayor and Councilmembers
Date: September 8, 2026
Page: 2 of 3
BACKGROUND:

The City Attorney for the City of La Mesa Glenn Sabine will retire on September 12, 2026.

The City Council had authorized the search for a permanent appointment and the permanent City Attorney is expected to start employment October 13, 2026, pending City Council approval.

Government Code §21221(h) and 21224 authorizes appointment of retired annuitants on an interim basis during recruitment for permanent positions when specialized skills are required and as extra-help, contingent on waiver of the 180-day post-retirement waiting period. Appointments are limited to 960 combined hours per fiscal year and compensated at an hourly rate derived from the current comparable base salary.

DISCUSSION:

The retiring City Attorney occupies a unique role necessitating institutional knowledge to ensure continuity in legal services, case transition, and compliance oversight during the recruitment and transition period.

A resolution adopted a public meeting, not on consent, is required to waive the 180-day waiting period. Mr. Sabine will work as Interim City Attorney through October 12, 2026, plus transition support through October 31, 2026. Compensation will not exceed maximum base salary for this position of $165.60 per hour. Mr. Sabine will not receive any other benefit or compensation in addition to the hourly rate.

CONCLUSION:

Staff recommends the City Council approve the Resolution waiving the 180-day waiting period under Government Code §21221(h) and 21224 for the City Attorney retiring on September 12, 2026; appoint the retiree as Interim City Attorney through October 13, 2026; and authorize extra-help post-retirement services through October 31, 2026, in accordance with statutory requirements.

Report to Mayor and Councilmembers
Date: September 8, 2026
Page: 3 of 3
Reviewed by: Respectfully submitted by:
____________________ ____________________________
Greg Humora Gretchen Spaniol
City Manager Director of Human Resources
Attachments:

A. Resolution approving an exception to the 180-day waiting period to hire a CalPERS retired annuitant in accordance with Government Code §7522.56, 21221(h), and 21224.
i. Exhibit 1: Interim City Attorney Employment Agreement Limited Duration Retired Annuitant – Glenn Sabine
ii. Exhibit 2: 20260908 Compensation Plan

RESOLUTION NO. 2026 -

RESOLUTION OF THE CITY COUNCIL OF THE CITY LA MESA
APPROVING AN EXCEPTION TO THE 180-DAY WAITING PERIOD TO

HIRE A CALPERS RETIRED ANNUITANT IN ACCORDANCE WITH
GOVERNMENT CODE SECTIONS 7522.56, 21221(H), AND 21224
WHEREAS, in compliance with Government (Gov.) Code section 7522.56 of the Public Employees’ Retirement Law, the City of La Mesa must provide CalPERS this certification resolution when hiring a retiree before 180 days has passed since their retirement date;
WHEREAS, Glenn Sabine (CalPERS ID 5683688112), retired from City of La Mesa in the position of City Attorney, effective September 12, 2026; WHEREAS, Gov. Code section 7522.56 requires that post-retirement employment commence no earlier than 180 days after the retirement date, which is March 11, 2027, without this certification resolution;
WHEREAS, Gov. Code section 7522.56 provides that this exception to the 180- day wait period shall not apply if the retiree accepts any retirement-related incentive; WHEREAS, the City Council of the City of La Mesa, the City of La Mesa and Glenn Sabine certify that Glenn Sabine has not and will not receive a Golden Handshake or any other retirement-related incentive;
WHEREAS, an appointment under Gov. Code section 21221(h) requires the retiree is appointed into the interim appointment of City Attorney during recruitment for a permanent appointment;
WHEREAS, the governing body authorized the search for a permanent appointment on May 12, 2026 and permanent City Attorney is expected to start employment October 13, 2026;
WHEREAS, the City Council of the City of La Mesa hereby appoints Glenn Sabine as an interim appointment retired annuitant to the vacant position of City Attorney for the City of La Mesa under Gov. Code section 21221(h) effective September 13, 2026, and as extra-help retired annuitant to perform similar duties to a City Attorney under Gov.

Code 21224, effective October 12, 2026 to allow for a transition period with the permanent City Attorney;
WHEREAS, Glenn Sabine’s retired annuitant appointment under Gov. Code section 21224 will end no later than October 31, 2026;

WHEREAS, the entire employment agreement, contract or appointment document between Glenn Sabine and the City Council of the City of La Mesa has been reviewed by this body and is attached hereto as Exhibit “1”;
WHEREAS, no matters, issues, terms or conditions related to this employment and appointment have been or will be placed on a consent calendar; WHEREAS, the employment shall be limited to 960 hours per fiscal year for all CalPERS employers;
WHEREAS, the compensation paid to retirees cannot be less than the minimum nor exceed the maximum monthly base salary paid to other employees performing comparable duties, divided by 173.333 to equal the hourly rate; WHEREAS, the maximum base salary for this position is $28,704, with an hourly equivalent of $165.60 and the minimum base salary for this position is $24,334, with an hourly equivalent of $140.39;
WHEREAS, a copy of the compensation plan is attached hereto as Exhibit “2” and incorporated by reference as though fully set forth herein; WHEREAS, the hourly rate paid to Glenn Sabine will be $165.60; and WHEREAS, Glenn Sabine has not and will not receive any other benefit, incentive, compensation in lieu of benefit or other form of compensation in addition to this hourly pay rate.

NOW, THEREFORE, BE IT AND IT IS HEREBY RESOLVED by the City Council of the City of La Mesa as follows:

1. The recitals set forth above are true and correct and are hereby incorporated by this reference as if fully set forth in their entirety.

2. The City Council of the City of La Mesa hereby certifies the nature of the employment of Glenn Sabine as described herein and detailed in the attached employment agreement and that this appointment is necessary to fill the critically needed position of City Attorney for the City of La Mesa by September 13, 2026 because Mr. Sabine has unique institutional knowledge and specialized skills needed for operational continuity.

PASSED AND ADOPTED at a Regular meeting of the City Council of the City of La Mesa, California, held the 8
th day of September 2026, by the following vote, to wit:

AYES:

NOES:

ABSENT:

CERTIFICATE OF CITY CLERK
I, MEGAN WIEGELMAN, City Clerk of the City of La Mesa, California, do hereby certify the foregoing to be a true and exact copy of Resolution No. 2026-__, duly passed and adopted by the City Council of said City on the date and by the vote therein recited.

MEGAN WIEGELMAN, CMC, City Clerk
(SEAL OF CITY)

Exhibit 1

INTERIM CITY ATTORNEY EMPLOYEMENT AGREEMENT

LIMITED DURATION RETIRED ANNUITANT
This Agreement is made and entered into this 8th day of September 2026, by and between the City of La Mesa, a municipal corporation organized and operating pursuant to the laws of the State of California ("City”), and Glenn Sabine, an individual (“Employee”) (this “Agreement”).

RECITALS
WHEREAS, therefore, City desires to appoint Employee as a temporary, at-will employee for a definite period of time to serve in the position of Interim City Attorney for the City of La Mesa, which is a position that requires specialized skills, and Employee desires to perforn and assume responsibility as the Interim City Attorney on a temporary basis subject to the terms and conditions set forth in this Agreement; and
WHEREAS, the parties wish to have Employee perform the services of Interim City Attorney, while the City completes its recruitment for a permanent City Attorney, and will terminate such services upon the City’s selection and hiring of a permanent City Attorney; and WHEREAS, Government Code Sections 7522.56 and 21221(h) and 21224 permit retired annuitants under the California Public Employees’ Retirement System (“CalPERS”) to be employed without reinstatement from retirement upon appointment by a public agency to fill a vacant position on an interim basis during the recruitment to permanently fill the vacant position, if approved by the City Council; and
WHEREAS, Employee has served as a City Attorney with over twenty-nine years of Municipal experience, and those specialized skills are necessary to support the continuing operations of the City during the recruitment; and
WHEREAS, the City wishes to establish the terms and conditions of Employee’s services to the City through this Agreement, in compliance with Government Code section 7522.56 and 21221(h) and 21224.

NOW, THEREFORE, in consideration of the mutual covenants contained herein, City and Employee hereby agree as follows:

AGREEMENT

1.0 EMPLOYMENT & DUTIES

1.1 Duties. City hereby employs Employee as Interim City Attorney for the City to perform the functions and duties of the City Attorney contained in the City of La Mesa Municipal Code, as otherwise provided by law, ordinance, or regulation, and such further lawful duties as directed by the City Council. Employee shall devote his best efforts to the performance of these duties.

1.2 Work Schedule. Employee will be required to keep accurate time records of his hours worked and be enrolled in the myCalPERS system as a retired annuitant to ensure that he does not exceed 960 hours worked within the fiscal years that occur during the term of this Agreement. In the position of Interim City Attorney, work before or after normal business hours may be required.

Employee shall attempt to flex his hours (starting late or ending early or scheduling time off during the week), so that he does not work over 40 hours in a workweek.

1.3 Employment Status. Employee shall serve at the will and pleasure of the City Council and understands he is an "at-will" employee subject to summary dismissal without any right of notice or hearing, including any “Skelly” hearing. The City may terminate the employment of the Employee at any time, as set forth in Section 2.2 below. Employee shall not be subject to the City’s Personnel System Rules and Regulations and will not acquire a property interest in the position of Interim City Attorney. Employee is a temporary employee employed to perform specialized services in accordance with Government Code sections 7522.56 and 21221(h) and 21224.

2.0 TERM

2.1 Term. This Agreement is effective September 13, 2026 (“Commencement Date”).

This Agreement shall expire as of the first of the following to occur: (i) within 30 days of the employment commencement date of a permanent City Attorney to allow for a transition period, but no later than October 31, 2026; (ii) upon Employee working 960 hours for fiscal year 2026-2027 or 960 hours in any subsequent fiscal year; or (iii) upon termination of the Agreement by either Employee or the City as provided below.

2.2 Termination by City or Employee. The City may terminate this Agreement at any time with or without cause and with or without notice. At the time of termination, Employee shall not be entitled to any pay or benefits, except that which is owed for those hours already worked.

Additionally, Employee may terminate this Agreement at any time with or without cause, provided, however he shall reasonably provide the City with at least two (2) weeks’ advance written notice prior to the effective date of termination, if practicable, unless a shorter period is acceptable to the City.

2.3 Transfer of Responsibilities. After Notice of Resignation, Termination, or selection of a permanent City Attorney, the Employee shall cooperate with the City, as requested by the City, to effect a transition of the Employee’s responsibilities and duties and to ensure that the City is aware of all matters being handled by Employee.

2.4 No Reappointment or Extension of Term. In accordance with state law and the requirements of the Public Employees’ Retirement Law (PERL), the Employee may only be appointed to this position one time (single appointment).

2.5 No Severance Pay. Upon termination, Employee shall not be entitled to severance pay, payment of any benefits, or any other form of compensation, and Employee expressly waives any and all rights with respect to severance pay.

3.0 COMPENSATION & REIMBURSEMENT

3.1 Compensation and Compensation Cap. For the services rendered pursuant to this Agreement, the City agrees to pay Employee as Employee’s sole compensation, the amount of $165.60 per hour, which amount is in conformance with the requirements of Government Code Section 7522.56(d). The hourly rate is not more than the maximum nor less than the minimum monthly base salary paid to other employees performing comparable duties, reflected as an hourly rate by dividing the monthly base pay by 173.333. Because the Employee is paid on an hourly basis, and in accordance with the FLSA, if the Employee works over 40 hours per workweek, the Employee will be paid for additional hours at the legally required overtime rate.

3.2 Medicare. Employee shall pay his own required Medicare contributions.

3.3 No Other Benefits. Employee shall not receive any benefits, incentives, compensation in lieu of benefits, or any other forms of compensation.

3.4 Reimbursable Expenses. Employee shall be entitled to reimbursement of mileage for driving required in the course of his work (not commuting), in accordance with City policies for all employees. Employee shall not be entitled to reimbursement for any other costs or expenses incurred in the performance of Employee’s duties under this Agreement unless said costs and expenses have received prior approval by the City Council and are supported by written documentation in accordance with the established policies and customary practices of the City.

4.0 ACKNOWLEDGMENT OF NO BENEFITS

4.1 Conflicts Prohibited. During the term of this Agreement, Employee shall not be engaged in any business or transacton or maintain a financial interest which conflicts, or reasonable might be expected to conflict, with the proper discharge of Employee’s duties under this Agreement. Employee shall comply with all requirements of the law, including but not limited to, Sections 87100 et seq., Section 1090 and Section 1125 of the Government Code, and all other similar statutory and administrative rules. Employee further covenants that in the performance of this Agreement he shall be subject to and abide by the provisions of the Political Reform Act (Government Code Section 81000 et seq.) and the City’s Conflict of Interest Code.

4.2. Provision of Benefits Prohibited. Employee is a CalPERS retiree and will thus not be enrolled in CalPERS, other than as a retired annuitant solely for administrative record keeping purposes (Employee will remain in retired status) and will report both the hours worked by Employee and pay pursuant to this Agreement. Employee understands and acknowledges that Government Code Section 21221(h) provides that a retired annuitant appointed to a vacant position pursuant to this subdivision shall not receive any benefits, incentives, compensation in lieu of benefits, or any other forms of compensation in addition to the hourly rate of compensation.

Therefore, Employee will receive only the hourly wages described above, unless otherwise required by applicable law.

4.3 Employee agrees to provide the services to City required pursuant to this Agreement as an Employee of CITY; accordingly, therefore, City and Employee agree that City shall indemnify

Employee as if he is a regular employee pursuant to the provisions of Title 1, Division 3.6 of the Government Code. Employee’s compensation shall be subject to all required deductions and withholdings as any other employee of City; provided, however, that no deductions or withholdings shall be made for the purpose of contributions to any employment benefits regularly provided to City employees.

4.4 Employee is expected to devote the necessary time, within and outside normal business hours, to the business of the City. Employee may use his judgment (consistent with his experience and with standards of practice in the industry) to determine his specific hours and his work tasks performed or work events attended, subject to the direction and oversight of the City Council.

The City retains the right to designate, reduce, change, or amend the number of hours assigned to Employee consistent with the City’s workload and other needs. Employee will be responsible for keeping track of her hours worked. Employee must submit his record of hours worked to the City Manager’s Office according to the same schedule and procedures as other City employees.

Hours worked by Employee under this Agreement will count toward the 960-hour per fiscal year limitation. The City will provide Employee with copies of the hours reports periodically submitted to CalPERS regarding her employment with City.

4.5 Employee understands and agrees that the terms of her employment are governed only by this Agreement and that no right of employment for any specific term is created by this Agreement. Employee further understands that she acquires no property interest in her employment by virtue of this Agreement, and that the employment is “at-will” as defined by laws of the State of California. The Parties agree that confidential personnel records pertaining to Employee’s employment and eventual release from employment shall remain confidential to the extent permitted by law.

4.6 Employee understands that CalPERS retired annuitants may be employed by a CalPERS public agency employer, by temporary appointment not to exceed 960 hours in any fiscal year for all such employers; either (1) during an emergency to prevent stoppage of public business, or (2) because the retired employee has skills needed in performing the work of limited duration. Employee agrees not to perform work for any other CalPERS agency during the period of employment for City under this Agreement.

4.7 The City makes no representation on the impact, if any, this Agreement shall or may have upon Employee’s CalPERS retirement benefits, status, duties, and/or obligations.

Employee acknowledges that in entering into this Agreement, he has not relied upon any such representations (none of which being in existence) in assessing the CalPERS-related impact of his employment. Therefore, Employee releases the City from any and all CalPERS-related claims or liabilities that may arise in connection with her employment pursuant to this Agreement.

The City is not obligated to provide, and Employee is not entitled to receive from City, enrollment in the California Public Employees’ Retirement System (CalPERS), unless Employee is currently a member of CalPERS through prior employment.

4.8 In compliance with CalPERS regulations and requirements, the Parties expressly agree that Employee cannot and shall not perform any “volunteer” work to the City during his employment under this Agreement.

4.9 In the event that Employee providing services under this Agreement claims or is determined by a court of competent jurisdiction or the CalPERS to be eligible for enrollment in CalPERS of the City, Employee shall indemnify, defend, and hold harmless City for the payment of any employee contributions for CalPERS benefits on behalf of the Employee.

4.10 Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, Employee providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any other compensation and benefit.

5.0 OTHER TERMS AND CONDITIONS OF APPOINTMENT
City, in consultation with Employee, shall fix any other such terms and conditions of employment as it may deem necessary from time to time relating to the performance of Employment provided such terms and conditions are not inconsistent with or in conflict with the provisions of this Agreement, the Municipal Code or any other applicable law.

6.0 NOTICES
Notice pursuant to this Agreement shall be given by deposit in the custody of the United States Postal service, postage prepaid, addressed as follows:
(1) City of La Mesa
Attn: Gretchen Spaniol, Director of Human Resources
8130 Allison Avenue
La Mesa CA 91942
(2) Glenn Sabine
Address on file
Alternatively, notice required pursuant to this Agreement may be personally served in the same manner as is applicable to civil judicial practice. Notice shall be deemed given as of the date of personal service or as of the date of deposit of such written notice in the course of transmission in the United States Postal Service.

7.0 GENERAL PROVISIONS

7.1. The text herein shall constitute the entire agreement between the parties.

7.2 Employee shall not assign any interest in this Agreement, and shall not transfer any interest in the same without the prior written consent of City.

7.3 Employee agrees that all documents and writings of any type produced in the performance of this Agreement and delivered to the City or staff shall be the sole property of City including all rights therein of whatever kind and whether arising from common or civil law or equity. Upon termination of this Agreement for any reason, or upon expiration of this Agreement, all such documents and writings produced in the performance of this Agreement shall be transferred to and become the property of City upon its request without additional compensation.

7.4 If any provision, or any portion thereof, contained in this Agreement is held unconstitutional, invalid or unenforceable, the remainder of this Agreement, or portion thereof, shall be deemed severable, shall not be affected and shall remain in full force and effect.

7.5 This Agreement shall be governed by the laws of the State of California and any litigation brought pursuant to it shall be in San Diego County. Employee expressly waives any rights he might otherwise have as provided in Code of Civil Procedure Section 394 to remove any action from San Diego County.

7.6 This Agreement constitutes the entire Agreement between City and Employee and supersedes and replaces any and all prior or contemporaneous agreements, understandings or commitments between City and Employee. No waiver, alteration or modification of any of the provisions of this Agreement shall be binding unless in writing and signed by a duly authorized representative of both City and Employee.

7.7. This Agreement may be signed in counterpart or duplicate copies and any signed counterpart of duplicate copy shall be equivalent to a signed original for all purposes.

7.8 This Agreement shall not be construed against any one party, but shall be construed as if jointly prepared by City and Employee.

IN WITNESS WHEREOF, City has caused this Agreement to be signed and executed on its behalf by its Mayor, and duly attested by its officers thereunto duly authorized, and Employee has signed and executed this Agreement the day and year first above written.

Retired Annuitant Employee City of La Mesa
by _________________________________ by _________________________________ Glenn Sabine Mark Araposthathis
Mayor
__________________________________ ____________________________________ Date Date

Monthly Hourly Monthly Hourly Monthly Hourly Monthly Hourly Monthly Hourly Monthly Hourly Monthly Hourly City Councilmember 1,900 Elected 1084 9410 2
City Treasurer 1,100 Elected 1090 8810 1Mayor 3,800 Elected 1234 9410 3 Monthly Hourly Monthly Hourly Monthly Hourly Monthly Hourly Monthly Hourly Monthly Hourly Monthly Hourly Accounting Technician - Confidential 6,130 35.37 6,437 37.14 6,759 38.99 7,097 40.94 7,452 42.99 7,825 45.14 8,216 47.40 Conf 1013 8810 1 Administrative Analyst I - Confidential 6,463 37.29 6,786 39.15 7,125 41.11 7,481 43.16 7,855 45.32 8,248 47.58 8,660 49.96 Conf 1003 8810 6Administrative Analyst II - Confidential 7,115 41.05 7,471 43.10 7,845 45.26 8,237 47.52 8,649 49.90 9,081 52.39 9,535 55.01 Conf 1006 8810 7Administrative Coordinator -Confidential 5,733 33.08 6,020 34.73 6,321 36.47 6,637 38.29 6,969 40.21 7,317 42.21 7,683 44.33 Conf 1025 8810 5Executive Assistant to the City Manager 6,781 39.12 7,120 41.08 7,476 43.13 7,850 45.29 8,243 47.56 8,655 49.93 9,088 52.43 Conf 1339 8810 2Human Resources Analyst 7,542 43.51 7,919 45.69 8,315 47.97 8,731 50.37 9,168 52.89 9,626 55.53 10,107 58.31 Conf 1203 8810 3Human Resources Assistant 4,425 25.53 4,646 26.80 4,878 28.14 5,122 29.55 5,378 31.03 5,647 32.58 5,929 34.21 Conf 1205 8810 4Human Resources Technician 5,866 33.84 6,159 35.53 6,467 37.31 6,790 39.17 7,130 41.13 7,487 43.19 7,861 45.35 Conf 1202 8810 8 Monthly Hourly Monthly Hourly Monthly Hourly Monthly Hourly Monthly Hourly Monthly Hourly Monthly Hourly Assistant City Manager 16,829 97.09 101.95 17,671 18,555 107.05 19,483 112.40 118.02 20,457 NS Mgmt 1036 9410 Assistant Director of Community Development 12,361 71.31 74.88 12,979 13,628 78.62 14,309 82.55 86.68 15,024 NS Mgmt 1146 9410Assistant Director of Public Works 12,361 71.31 74.88 12,979 13,628 78.62 14,309 82.55 86.68 15,024 NS Mgmt 1145 9410Assistant to the City Manager 10,346 59.69 62.67 10,863 11,406 65.80 11,976 69.09 72.55 12,575 NS Mgmt 1037 9410Building Inspection Supervisor 8,726 50.34 52.86 9,162 9,620 55.50 10,101 58.28 61.19 10,606 NS Mgmt 1055 9410Building Official 12,142 70.05 73.55 12,749 13,386 77.23 14,055 81.09 85.14 14,758 NS Mgmt 1069 9410City Attorney 140.39 24,334 165.60 28,704 NS Mgmt 1078 8810City Clerk 11,084 63.94 67.14 11,638 12,220 70.50 12,831 74.03 77.73 13,473 NS Mgmt 1081 8810City Engineer 12,361 71.31 74.88 12,979 13,628 78.62 14,309 82.55 86.68 15,024 NS Mgmt 1086 9410City Manager 150.73 26,127 NS Mgmt 1087 9410Communications Manager 10,346 59.69 62.67 10,863 11,406 65.80 11,976 69.09 72.55 12,575 NS Mgmt 1106 8810 Salary Range established by Contract 9/8/26 (effective 10/13/26) Range #
Step E Step F Step G
Payroll Group Class Code WC Code
WC Code
Class Title
Step A Step B Step C Step D
Salary established by ordinance 2023-2905 (Eff 12/10/24)Salary established by ordinance 2023-2905 (Eff 12/10/24)Salary established by ordinance 2023-2905 (Eff 12/10/24) Class
Code WC Code
Salary Established by Contract Amended 8/12/25 (Effective 7/1/25) Range #
Step E Step F Step G
Payroll Group Class Code
Class Title
Step A Step B Step C Step D
City of La Mesa
Compensation Plan - Elected Officials FY 2027
EFFECTIVE: 12/10/24, AS AMENDED & APPROVED on 11/26/2024 City of La Mesa
Compensation Plan - Confidential Staff FY 2027
EFFECTIVE: 7/3/2026, AS AMENDED & APPROVED on 6/23/2026 City of La Mesa
Compensation Plan - Management Groups FY 2027
NS MGMT & FIRE MGMT EFFECTIVE: 7/3/26, AS AMENDED & APPROVED on 6/23/26 Class Title
Step A Step B
POLICE MGMT EFFECTIVE: 7/5/2026, AS AMENDED & APPROVED 06/23/2026 Range #
Step E Step F Step G
Payroll Group
Step C Step D

Monthly Hourly Monthly Hourly Monthly Hourly Monthly Hourly Monthly Hourly Monthly Hourly Monthly Hourly Class
Code Class Title WC Code
Step A Step B Step C Step D
City of La Mesa
Compensation Plan - Management Groups FY 2027
NS MGMT & FIRE MGMT EFFECTIVE: 7/3/26, AS AMENDED & APPROVED on 6/23/26 POLICE MGMT EFFECTIVE: 7/5/2026, AS AMENDED & APPROVED 06/23/2026 Range #
Step E Step F Step G
Payroll Group
Parks and Recreation Manager 10,346 59.69 62.67 10,863 11,406 65.80 11,976 69.09 72.55 12,575 NS Mgmt 1140 9410Deputy Fire Chief 15,002 86.55 90.88 15,752 16,540 95.42 17,367 100.19 105.20 18,235 NS Mgmt 1178 7706Director of Community Development 14,890 85.90 90.20 15,634 16,416 94.71 17,237 99.44 104.42 18,099 NS Mgmt 1138 9410Director of Parks and Recreation 14,890 85.90 90.20 15,634 16,416 94.71 17,237 99.44 104.42 18,099 NS Mgmt 1141 9410Director of Finance 14,890 85.90 90.20 15,634 16,416 94.71 17,237 99.44 104.42 18,099 NS Mgmt 1142 9410Director of Human Resources 14,890 85.90 90.20 15,634 16,416 94.71 17,237 99.44 104.42 18,099 NS Mgmt 1151 9410Director of Public Works 14,890 85.90 90.20 15,634 16,416 94.71 17,237 99.44 104.42 18,099 NS Mgmt 1143 9410Director of Public Works / CityEngineer 14,890 85.90 90.20 15,634 16,416 94.71 17,237 99.44 104.42 18,099 NS Mgmt 1144 9410Engineering Project Manager 10,456 60.32 63.34 10,979 11,528 66.51 12,104 69.83 73.32 12,709 NS Mgmt 1153 9410Environmental Manager 10,346 59.69 62.67 10,863 11,406 65.80 11,976 69.09 72.55 12,575 NS Mgmt 1158 9420Finance Manager 10,449 60.29 63.30 10,972 11,521 66.47 12,097 69.79 73.28 12,702 NS Mgmt 1172 8810Fire Chief 17,458 100.72 105.76 18,331 19,248 111.05 20,210 116.60 122.43 21,221 FIRE Mgmt 1177 7706Fire Division Chief 13,188 76.08 79.89 13,847 14,539 83.88 15,266 88.07 92.48 16,029 FIRE Mgmt 1180 7706Fire Marshal 13,442 77.55 81.43 14,114 14,820 85.50 15,561 89.78 94.26 16,339 NS Mgmt 1183 9410Human Resources Manager 10,346 59.69 62.67 10,863 11,406 65.80 11,976 69.09 72.55 12,575 NS Mgmt 1201 8810Human Resources/Risk Manager 11,384 65.68 68.96 11,953 12,551 72.41 13,179 76.03 79.83 13,838 NS Mgmt 1200 8810Information Technology Manager 10,449 60.29 63.30 10,972 11,521 66.47 12,097 69.79 73.28 12,702 NS Mgmt 1207 9410Management Analyst 7,360 42.46 44.58 7,728 8,114 46.81 8,520 49.15 51.61 8,946 NS Mgmt 1231 8810Police Captain 16,802 96.93 101.78 17,642 18,524 106.87 19,450 112.21 117.83 20,423 Police Mgmt 1267 7720Police Chief 20,056 115.71 121.49 21,059 22,112 127.57 23,218 133.95 140.65 24,379 Police Mgmt 1270 7720Police Lieutenant 14,571 84.06 88.27 15,300 16,065 92.68 16,868 97.32 102.18 17,711 Police Mgmt 1279 7720Police Services Manager 59.69 10,346 62.67 10,863 11,406 65.80 11,976 69.09 72.55 12,575 NS Mgmt 1290 9410Public Works Operations Manager 59.69 10,346 62.67 10,863 11,406 65.80 11,976 69.09 72.55 12,575 NS Mgmt 1314 9420Purchasing Officer 48.84 8,465 51.28 8,888 9,332 53.84 9,799 56.53 59.36 10,289 NS Mgmt 1315 8810Records Program Manager 42.46 7,360 44.58 7,728 8,114 46.81 8,520 49.15 51.61 8,946 NS Mgmt 1318 8810Risk Manager 59.69 10,346 62.67 10,863 11,406 65.80 11,976 69.09 72.55 12,575 NS Mgmt 1333 9410Senior Accountant 48.84 8,465 51.28 8,888 9,332 53.84 9,799 56.53 59.36 10,289 NS Mgmt 1342 8810Senior Management Analyst 48.84 8,465 51.28 8,888 9,332 53.84 9,799 56.53 59.36 10,289 NS Mgmt 1348 8810Senior Planner 58.17 10,083 61.08 10,587 11,116 64.13 11,672 67.34 70.71 12,256 NS Mgmt 1351 9410Superintendent of Public Works 54.62 9,468 57.35 9,941 10,438 60.22 10,960 63.23 66.39 11,508 NS Mgmt 1357 9420

REPORT to the MAYOR and MEMBERS of the CITY COUNCIL
From the CITY MANAGER
DATE: September 8, 2026
SUBJECT: LA MESA COMMUNITY PARKING COMMISSION

RECOMMENDATION REGARDING THE LA MESA

VILLAGE ENHANCEMENT FUND PROGRAM
DESCRIPTION: APPROVAL OF THE FOLLOWING:

1. LA MESA COMMUNITY PARKING COMMISSION’S

RECOMMENDATION FOR THE LA MESA VILLAGE
ENHANCEMENT FUND PROGRAM; AND

2. RESOLUTION APPROPRIATING $35,000 FROM

THE DOWNTOWN PARKING FUND TO THE FISCAL
YEAR 2027 VILLAGE ENHANCEMENT FUND

BUDGET TO IMPLEMENT THE RECOMMENDATION
(ATTACHMENT A)
ISSUING DEPARTMENT: City Manager’s Office
Recommendation:

1. Approve the La Mesa Community Parking Commission’s recommendation for the La Mesa Village Enhancement Fund Program.

2. Adopt a resolution appropriating $35,000 from the Downtown Parking Fund to the Fiscal Year 2027 (FY 27) Downtown Village Enhancement Fund budget to implement the recommendation.

Fiscal Impact:

The La Mesa Village Enhancement Fund Program is funded by the Downtown Parking Fund. In 2025, the City Council adopted Resolution No. 2025-126, setting an annual funding cap of $50,000 for the program.

Report to Mayor and Councilmembers
Date: September 8, 2026
Page: 2 of 4
BACKGROUND:

In 2019, the La Mesa Village Enhancement Fund Program (VEF Program) was launched as a one-year pilot program. In May 2021, the City Council directed staff to continue the program. The purpose of the VEF Program is to encourage ongoing investment in the Downtown Village by providing opportunities for non-profit organizations and private businesses to apply for funds to finance events, promotions, programs, and advertising in the Downtown Village and to create additional entertainment opportunities for the community. The VEF Program is capped at $50,000 and is funded by the Downtown Parking Fund. To be eligible for funding, all activities funded by the VEF Program must occur in Parking District Number One.

The role of the La Mesa Community Parking Commission (Commission) in the program’s application process is to make recommendations to the City Council annually as to which applications should receive funding. A key program goal is that applications must be able to demonstrate a public benefit to the businesses in Parking District Number One.

DISCUSSION:

VEF Program Funding Recommendation. The VEF Program application period was open from July 1, 2026 to July 31, 2026, and a total of six applications were received. Two of the six applicants did not attend the August 18, 2026, Community Parking Commission meeting; therefore, they were not considered for VEF funding.

Prior to the August 18, 2026, Commission meeting, the Commission scored each application based on a scoring metric. At the meeting, the Commission asked each applicant questions and then shared and discussed their scoring to formulate a recommendation.

Below is a summary of the applications that were considered for funding and the recommended funding amounts. The applications are included as Attachment C.

Applicant Activity Requested
Funding
Recommended
Funding
La Mesa Village Association
(LMVA)/Acru Health Wellness Fair $30,000 $20,000
Diversionary Theater La Mesa Pride $50,000 $15,000
Meet Cute Bookshop Community Drag Story
Hour $500 $0
Visit La Mesa CA Advertisement $50,000 $0
Total $130,500 $35,000

Report to Mayor and Councilmembers
Date: September 8, 2026
Page: 3 of 4
The applications that were considered for funding are summarized below:

1. Wellness Fair: The LMVA and Acru Health are proposing to host the 1st Annual 2027 Wellness Fair, a transformative community initiative designed to celebrate holistic health, showcase local talent, and establish La Mesa as a premier destination for health and wellness. The objective is to build an enduring, highly anticipated annual tradition that directly benefits the local economy while promoting public health. The event will be located on La Mesa Blvd. west of Spring St. to Date Ave. and on Nebo Dr. from La Mesa Blvd. to the alley. The event will include approximately 50 vendors and a designated open area where instructor-led courses in Pilates, yoga, and “bootcamp” fitness will take place. The proposed event is on Saturday, January 23, 2027. The recommended funding amount is $20,000.

2. La Mesa Pride: The Diversionary Theater is proposing La Mesa’s first Pride event.

The event will be for those 21 years of age or older and will take place in the Allison Ave. Municipal Parking Lot. The event will serve alcohol and meet all Alcoholic Beverage Control (ABC) requirements. The event area will include food vendors, vendors selling merchandise, a video wall, a stage with live music, and various other entertainment. VEF funding would be used for costs associated with production, advertising, and permitting. The proposed event date is June 12, 2027; however, it may be moved due to a potential conflict with the 2027 Flag Day Parade. The recommended funding amount is $15,000.

3. Community Drag Story Hour: The Meet Cute Bookshop is proposing Community Drag Story Hour, a free family-friendly event open to children and families of all ages.

Hosted at Meet Cute Bookshop in the heart of the village, this event will feature an engaging read-aloud by a professional performer from Drag Story Hour San Diego, followed by interactive activities that encourage a love of reading, creativity, kindness, and community connection. This event is designed to bring families into the La Mesa Village on a Saturday morning, creating an opportunity to enjoy local businesses before and after the program. The proposed event date is a Saturday to be determined. The Commission did not recommend funding for this application due to the event activity taking place inside one business, therefore not meeting the threshold for an area-wide benefit to Parking District One per VEF Program Guidelines.

4. Visit La Mesa CA Community Marketing Initiative: Visit La Mesa CA is proposing a 12-month downtown La Mesa marketing and community engagement program to market downtown La Mesa as one of San Diego County’s premier local destinations.

This marketing initiative will increase awareness of downtown La Mesa businesses, encourage residents to shop and dine locally, highlight local entrepreneurs, and strengthen community pride and engagement. This marketing initiative will be built around summer activities, shopping seasons, restaurant promotions, and community celebrations designed to encourage year-round visitation. Interviews with business owners, local artists, community leaders, and long-term residents will be included to

Report to Mayor and Councilmembers
Date: September 8, 2026
Page: 4 of 4
share the stories that make La Mesa unique. The proposed marketing initiative is for 12 months. The Commission did not recommend funding for this application but acknowledged the potential benefits of the proposed services. It determined that the request would primarily support the services and operations of an existing for-profit business and social media platform that promotes businesses and activities throughout La Mesa. Therefore, the proposal was not considered consistent with the geographic focus or intended purpose of the VEF program.

CONCLUSION:

Staff recommends that the City Council consider the Parking Commission’s recommendations to fund the FY 27 VEF Program applications and, if approved, authorize a resolution to appropriating $35,000 from the Downtown Parking Fund to the FY 27 Downtown VEF budget.

Reviewed by: Respectfully submitted by:
____________________ ____________________
Greg Humora Amanda Lee
City Manager Assistant City Manager
____________________
Lyn Dedmon
Assistant to the City Manager
Attachments:

A. Resolution – Appropriation of funding for the Fiscal Year 2027 VEF Program B. FY 27 VEF Program Applications
C. Fiscal Impact Statement

RESOLUTION NO. 2026-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA MESA
APPROPRIATING $35,000 FROM THE DOWNTOWN PARKING FUND
TO THE FISCAL YEAR 2027 DOWNTOWN VILLAGE ENHANCEMENT

FUND BUDGET
WHEREAS, on May 25, 2021, the City Council approved continuing the Downtown Village Enhancement Fund Program (“VEF Program) from the pilot year in to subsequent years;
WHEREAS, when it was first implemented, the VEF Program was funded from 50% of annual net parking revenues from the Downtown Parking Fund; WHEREAS, on September 23, 2025, the City Council adopted Resolution No. 2025-126, setting an annual funding cap of $50,000 for the VEF Program; WHEREAS, after deducting operating expenses and applying interfund transfers from Fiscal Year 2026 revenue, 50% of the available net revenue is over the $50,000 annual cap, therefore $50,000 is available for the Fiscal Year 2027 VEF Program; WHEREAS, the Community Parking Commission recommends funding applications to the VEF Program in the amount of $35,000; and WHEREAS, an appropriation in the amount of $35,000 is necessary from the Downtown Parking Fund to the Fiscal Year 2027 Downtown Village Enhancement Fund budget to fund the program.

NOW, THEREFORE, BE IT AND IT IS HEREBY RESOLVED by the City Council of the City of La Mesa, California, that the City Council approves appropriating $35,000 from the Downtown Parking Fund to the Fiscal Year 2027 Downtown Village Enhancement Fund budget.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of La Mesa, California, held the 8
th day of September 2026, by the following vote, to wit:

AYES:

NOES:

ABSENT:

CERTIFICATE OF CITY CLERK
I, MEGAN WIEGELMAN, City Clerk of the City of La Mesa, California, do hereby certify the foregoing to be a true and exact copy of Resolution No. 2026- , duly passed and adopted by the City Council of said City on the date and by the vote therein recited.

MEGAN WIEGELMAN, CMC, City Clerk
(SEAL OF CITY)

From: [email protected]
To: Lyn Dedmon
Subject: Online Form Submittal: La Mesa Village Enhancement Fund Program Date: Wednesday, July 15, 2026 3:18:18 PM
CAUTION: [EXTERNAL EMAIL] Do not click any links or open any attachments unless you trust the sender and know the content is safe.

La Mesa Village Enhancement Fund Program
Please complete all fields of information on the application form.

Once you have completed the application form, click the submit button at the bottom of the form. If you have questions about the application process, please call (619) 667-1339 or email [email protected].

Non-Profit
Organization/Business
Name:

LMVA
Business Address: 4690 Nebo Drive
Address Field not completed.

City La Mesa
State Ca
Zip 91941
Contact Name: Karissa Huerta and Theresa Fervo
Contact Phone
Number:
8088561594
Email Address: [email protected]
Are you located in La
Mesa?
Yes
Is your organization a
non-profit or a private
business?
Non-profit
Are you partnering with
a non-profit
Yes
LMVA / Acru ATTACHMENT "B" Health - Wellness Fair

organization or other
business?
Name of non-profit
organization or
business you are
partnering with (if
applicable):

Acru Health
Have you applied for
the La Mesa Village
Enhancement Fund
Program in prior years?
No
Amount of Total
Funding Requested:
30000
What type of activity
are you requesting
funds for?
Special Event
Please use the space
below to describe your
funding request.

La Mesa Village Enhancement Fund Program
Non-Profit Organization/Business Name: La Mesa Village
Association (LMVA)
Business Address: 8030 La Mesa Blvd., #189, La Mesa, CA 91942
Contact Name: Theresa Favro & Karissa Huerta
Contact Phone Number: TF # 619-654-1087 & KH # 808-856- 1594
Email Address: TF [email protected] & KH
[email protected]
Are you located in La Mesa? Yes
Is your organization a non-profit or a private business? Non-Profit Are you partnering with a non-profit organization or other business? No
Name of non-profit organization or business you are partnering with (if applicable): N/A
Have you applied for La Mesa VEF Program in prior years? Yes Amount of Total Funding Requested: $30.000.00
What type of activity are you requesting funds for? Special Event Please use the space below to describe your funding request and include a list of known expenses:

The La Mesa Village Association (LMVA) is interested in hosting the 1 st Annual 2027 Wellness Fair, a transformative
community initiative designed to celebrate holistic health, showcase local talent, and establish La Mesa as a
premier destination for health and wellness in Southern California.

By temporarily transforming our historic downtown into a pedestrian-friendly sanctuary, this free public event will

gather wellness practitioners, local businesses, and residents to foster a healthier, more vibrant, and economically
resilient community.

Event Logistics
Feature Detail
Date Saturday, January 23rd, 2027
Time 9:00 AM – 5:00 PM
Primary Location West side of Spring St. on La Mesa Blvd. (from Spring St. to Date
Ave.)
Secondary
Location Nebo Dr. (from La Mesa Blvd. to the alley)
Admission Free and open to the public
Vendor Capacity 50+ local businesses and wellness practitioners Our core objective is to build an enduring, highly anticipated annual tradition that directly benefits the local
economy while promoting public health. The Wellness Fair aims to:

1. Provide a high-visibility, low-barrier platform for local wellness businesses, independent practitioners, and
creators to showcase their products, services, and deep industry expertise.

2. Brand the La Mesa Village as Southern California's premier destination for mindful living, drawing visitors
from across San Diego County and beyond.

3. Democratize access to health education, fitness activities, and preventative care resources for individuals
of all ages and fitness levels.

To ensure a dynamic and engaging experience for all attendees, the festival footprint will be organized into
curated, interactive zones, each featuring rented booths, tables, and demonstration areas.

At the heart of the fair, live, instructor-led fitness sessions will take place on a dedicated main stage or designated
open-air pavement. We are projecting to host three signature classes throughout the day, each accommodating 35
to 40 active participants.

Yoga: A restorative start to the day focused on breathwork, flexibility, and mindfulness.

Bootcamp: A high-energy, full-body workout designed to build strength and cardiovascular endurance.

Pilates: A low-impact session focusing on core strength, posture, and muscular balance.

This zone will feature hands-on demonstrations and
complimentary mini-sessions provided by certified local experts. Attendees can experience firsthand the benefits of various therapeutic modalities, including:

Massage Therapy: Chair massages and deep-tissue
demonstrations.

Chiropractic Care: Posture evaluations and spinal health education.

Physical Therapy & Sports Medicine: Mobility assessments, injury prevention workshops, and recovery
technology demonstrations (e.g., percussion therapy,
compression boots).

A vibrant marketplace dedicated to internal health and conscious consumption. This area will feature culinary
entrepreneurs and local farms offering:

Freshly Pressed Juices & Smoothies: Focusing on organic, locally sourced ingredients.

Nutritional Sampling: Artisanal healthy snacks, gluten-free baked goods, and plant-based alternatives.

Dietary Education: Mini-consultations with certified nutritionists and dietitians to help attendees make
informed, sustainable dietary choices.

A promotional avenue for brick-and-mortar fitness centers, boutique studios, and lifestyle brands. Representatives will be on-site to:

Promote studio memberships with exclusive "Wellness Fair" sign-up incentives.

Detail upcoming specialty programs, retreats, and community challenges.

Distribute branded merchandise to increase long-term brand retention.

The LMVA strongly believes that hosting specialized, large-scale events like the Wellness Fair is exceptionally
beneficial for the entire ecosystem of La Mesa.

We anticipate this event will attract hundreds of residents— both from within the immediate community
and from distant neighborhoods. This concentrated surge in foot traffic translates directly to increased
daily sales, unparalleled brand visibility, and valuable lead generation for businesses located within and
adjacent to the La Mesa Village boundary.

The event fosters community cohesion, provides free
education, and offers a fun, family-friendly weekend
activity that promotes positive lifestyle changes.

A healthy, vibrant downtown signifies a thriving municipality.

The Wellness Fair will act as an economic
multiplier, supporting the long-term growth, cultural richness, and commercial viability of the City of La
Mesa.

To realize this vision, financial support is critical. As an organization, the LMVA currently lacks the necessary liquid capital to independently fund the foundational elements of this

event prior to generating revenue.

Because we have not yet opened vendor registration or secured primary sponsorships, seed funding is essential to
cover immediate, non-negotiable logistical costs, including:

Estimated Expenses
Estimated
Cost Items
$ 2,000.00 Permits/Insurance
$ 4,000.00 Stage, tables & chairs
$ 1,500.00 Photographer (photographs and drone photoaged) $ 1,500.00 Printing Banners/posters/postcards
$ 5,000.00 Marketing/Advertisement
$ 5,000.00 Electrician, cable ramps & fire extinguishers $ 1,500.00 Restrooms
$ 9,500.00 Event Coordinator
$30,000.00 Estimated Expenses
Supplemental Documentation
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From: [email protected]
To: Lyn Dedmon
Subject: Online Form Submittal: La Mesa Village Enhancement Fund Program Date: Friday, July 10, 2026 11:57:09 AM
CAUTION: [EXTERNAL EMAIL] Do not click any links or open any attachments unless you trust the sender and know the content is safe.

La Mesa Village Enhancement Fund Program
Please complete all fields of information on the application form.

Once you have completed the application form, click the submit button at the bottom of the form. If you have questions about the application process, please call (619) 667-1339 or email [email protected].

Non-Profit
Organization/Business
Name:

La Mesa Pride
Business Address: 6853 Alamo Way
Address Field not completed.

City La Mesa
State CA
Zip 91942
Contact Name: Rodney Elliott
Contact Phone
Number:
6197708171
Email Address: [email protected]
Are you located in La
Mesa?
Yes
Is your organization a
non-profit or a private
business?
Non-profit
Are you partnering with
a non-profit
Yes
Diversionary Theater - La Mesa Pride

organization or other
business?
Name of non-profit
organization or
business you are
partnering with (if
applicable):

Diversionary Theater
Have you applied for
the La Mesa Village
Enhancement Fund
Program in prior years?
No
Amount of Total
Funding Requested:

50.000
What type of activity
are you requesting
funds for?
Special Event
Please use the space
below to describe your
funding request.

La Mesa Pride, June 12, 2027,Alison Parking lot.

Will have Production, Staging, Lights, Sound, Video
Wall,Entertainment, Vendor booths, fenced in 21 and over Alcohol,tasteful dress code. Advertisment through out the year leading up to event, Vendor who sell merch,food. Partnershiping with Laurel McFarland for support and guidence on new event.

Targeted Audience is the town or La Mesa and the surrounding communities who are not represented. Having the request for a La Mesa pride on several social media platforms. all businesses in the area that sell food,drink or merchandies should see a spike in sales on june 12th. Real estate should see a increase in families who want to move outside of hillcrest to a safe and welcoming neighborhood. Funding is needed to start the first event, cost for
permits,advertising,production,entertainment,building an infrastructure for future prides.

Food,Alcohol,Ticketing,Website,Social Media.

Supplemental Documentation
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ESTIMATED EXPENSES
Silver Tiger Production
6853 Alamo Way
La Mesa, CA 91942
(619) 770-8171
La Mesa

RODNEY ELLIOTT
6853 Alamo Way
La Mesa, CA 91942-0000
Invoice #: 6
Invoice Date: 6/12/2027
Due Date: 6/12/2027

DESCRIPTION QUANTITY PRICE AMOUNT
Parking lot at Palm Ave and Allison 1.00 $0.00 $0.00
SL100 Trailer Stage 1.00 $5,000.00 /Each $5,000.00
Video Wall 640mm x 640mm LYLED 42.00 $125.00 /Each $5,250.00

14.83 X 8.3
Video Wall Flyware 12.00 $25.00 /Each $300.00
Video Wall Processor KyStar Processor 1.00 $200.00 /Each $200.00 10' Video Wall Truss DT36 1.00 $125.00 /Each $125.00

6.5 Video Wall Truss DT36 1.00 $90.00 /Each $90.00
5' Video Wall Truss 2.00 $80.00 /Each $160.00
Chain Motors 2.00 $200.00 /Each $400.00
Cam Distro Box - 208V 1.00 $250.00 /Each $250.00
Saco to Edison Fans 8.00 $40.00 /Each $320.00
HDMI Package 2.00 $60.00 /Each $120.00
Gac Flex Package 1.00 $60.00 /Each $60.00
True One Power Package 1.00 $60.00 /Each $60.00
Roland Video Switcher 1.00 $150.00 /Each $150.00
MSI i9 Computer 1.00 $200.00 /Each $200.00
MacBook Pro 1.00 $200.00 /Each $200.00
BANNER KIT 1.00 $5,000.00 $5,000.00
banners with sponsors over front and back of stage
FBT Muse 210 LA 8.00 $150.00 /Each $1,200.00 Page 478 of 497 MUSE FLYWARE 2.00 $40.00 /Each $80.00
FBT Muse 218S Dual 18" Subwoofers 2.00 $200.00 /Each $400.00 FBT Muse Qube Single 18" Woofer 4.00 $100.00 /Each $400.00 QSC K12.2 Loud Speakers 8.00 $75.00 /Each $600.00
Midas M32R 1.00 $200.00 /Each $200.00
Midas DL32 Digital Snake 1.00 $75.00 /Each $75.00
XLR Package 1.00 $60.00 /Each $60.00
Power Package 1.00 $60.00 /Each $60.00
True One Power Package 1.00 $60.00 /Each $60.00
Mic Package 1.00 $60.00 /Each $60.00
Mic Stand Package 1.00 $60.00 /Each $60.00
Wireless HH Mic Shure/Sennhiser 8.00 $150.00 /Each $1,200.00 8 x 4 Stage 2.00 $100.00 /Each $200.00
Drum Riser 8x8
8 x 2 Rolling DJ Deck 1.00 $100.00 /Each $100.00
Pioneer DJM900 Mixer 1.00 $200.00 /Each $200.00
CDJ 3000 NXSI 4.00 $150.00 /Each $600.00
Rasha Nash Bar 4.00 $200.00 /Each $800.00
Rasha Photon 4.00 $200.00 /Each $800.00
Rasha K2 Moving Intelligent 8.00 $150.00 /Each $1,200.00 Rasha Cybrid Intelligent Moving Beam 4.00 $150.00 /Each $600.00 Rasha Jinx Moving Beam 4.00 $150.00 /Each $600.00
Rasha Zuri Moving Head Beam 4.00 $125.00 /Each $500.00
LINK Lighting Controller 1.00 $150.00 $150.00
iPad and Router Package 2.00 $0.00 /Each $0.00
DMX Package 1.00 $50.00 /Each $50.00
Power Package LIGHTING 1.00 $60.00 $60.00
Vox AC15 Guitar Tube Amp 1.00 $50.00 /Each $50.00
Fender Hot Rod Deluxe III 1.00 $50.00 /Each $50.00
Ampeg SVT4 Pro Bass Head 1.00 $40.00 /Each $40.00 Page 479 of 497 Ampeg SVT 410 Bass Cabinet 1.00 $40.00 /Each $40.00
Drum Hardware 1.00 $100.00 /Each $100.00
DRUMSET 1.00 $500.00 $500.00
DW
Cymbals 1.00 $60.00 /Each $60.00

ZILDJAN
Table 2.00 $20.00 /Each $40.00
Chairs 6.00 $0.00 /Each $0.00
Tent 10 x 10 40.00 $50.00 /Each $2,000.00
Entertainment 1.00 $20,000.00 /Each $20,000.00
PERMITS 1.00 $1,000.00 $1,000.00
SECURITY 20.00 $600.00 $12,000.00
A1 Audio Engineer 2.00 $600.00 /Each $1,200.00
Stage Manager 1.00 $600.00 /Each $600.00
LD Lighting Designer 1.00 $600.00 /Each $600.00
LD Lighting Designer ASSISTANT 1.00 $600.00 $600.00
VT Video Tech 2.00 $600.00 /Each $1,200.00
Stage Hand Tech 1.00 $400.00 /Each $400.00
TRANSPORTATION Deliver and pick up 1.00 $200.00 /Each $200.00 200 kVA Generator 1.00 $3,500.00 $3,500.00
Cam Cable - 4/0 8.00 $50.00 /Each $400.00
200 AMP 12/5 DISTRO 2.00 $200.00 /Each $400.00
Spider Box 50amp Distro 8.00 $75.00 /Each $600.00
SUBTOTAL: $73,780.00
SALES TAX: $0.00
TOTAL: $73,780.00
BALANCE DUE: $73,780.00

From: [email protected]
To: Lyn Dedmon
Subject: Online Form Submittal: La Mesa Village Enhancement Fund Program Date: Wednesday, July 15, 2026 1:27:19 PM
CAUTION: [EXTERNAL EMAIL] Do not click any links or open any attachments unless you trust the sender and know the content is safe.

La Mesa Village Enhancement Fund Program
Please complete all fields of information on the application form.

Once you have completed the application form, click the submit button at the bottom of the form. If you have questions about the application process, please call (619) 667-1339 or email [email protected].

Non-Profit
Organization/Business
Name:

Drag Story Hour San Diego
Business Address: 4805 Epinette Ave
Address Field not completed.

City San Diego
State CA
Zip 92117
Contact Name: Maxime Massey
Contact Phone
Number:
9145256793
Email Address: [email protected]
Are you located in La
Mesa?
Yes
Is your organization a
non-profit or a private
business?
Non-profit
Are you partnering with
a non-profit
Yes
Meet Cute Bookstore - Drag Story Hour San Diego

organization or other
business?
Name of non-profit
organization or
business you are
partnering with (if
applicable):

MeetCute Bookstore
Have you applied for
the La Mesa Village
Enhancement Fund
Program in prior years?
No
Amount of Total
Funding Requested:
500
What type of activity
are you requesting
funds for?
Special Event
Please use the space
below to describe your
funding request.

Event: Community Drag Story Hour
Date: Saturday, August 29, 2026
Time: 9:30–11:00 a.m.

Location: Meet Cute Bookshop, La Mesa Village
Community Drag Story Hour is a free, family-friendly storytime event open to children and families of all ages. Hosted at Meet Cute Bookshop in the heart of La Mesa Village, the event will feature an engaging read-aloud by a professional performer from Drag Story Hour San Diego, followed by interactive activities that encourage a love of reading, creativity, kindness, and community connection.

This event is designed to bring families into La Mesa Village on a Saturday morning, creating an opportunity to enjoy local businesses before and after the program. By offering a free community event in a welcoming neighborhood setting, the program helps activate the Village, encourages foot traffic, and introduces new families to one of La Mesa’s unique local destinations.

Funding Request: $500
Requested funds will directly support the production of this community event, including:

Professional performer fee, storytime materials, and event décor provided by Drag Story Hour San Diego ($450)
Marketing materials, printed promotional items, and incidental

event expenses ($50)
Receiving support through the La Mesa Village Enhancement Fund will allow this event to remain completely free and accessible to the community while strengthening the Village as a vibrant gathering place for families. The event aligns with the program’s goal of enhancing downtown through communitycentered programming that increases visitation, supports local businesses, and creates meaningful experiences for residents and visitors alike.

Supplemental Documentation
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Invoice
Jesse Sherlock "Ella Mentry"
c/o Drag Story Hour
4805 Epinette Avenue
San Diego, CA 92117
BILL TO INVOICE DATE 07/01/2026
Maxime Massey
6070 Lubbock Avenue
La Mesa, CA 91942

DESCRIPTION AMOUNT
Drag Story Time featuring
August 29, 2026- performer fees
450.00
TOTAL $450.00

Powered by Invoice Home
From: [email protected]
To: Lyn Dedmon
Subject: Online Form Submittal: La Mesa Village Enhancement Fund Program Date: Wednesday, July 29, 2026 1:19:16 PM
CAUTION: [EXTERNAL EMAIL] Do not click any links or open any attachments unless you trust the sender and know the content is safe.

La Mesa Village Enhancement Fund Program
Please complete all fields of information on the application form.

Once you have completed the application form, click the submit button at the bottom of the form. If you have questions about the application process, please call (619) 667-1339 or email [email protected].

Non-Profit
Organization/Business
Name:

Visit La Mesa CA
Business Address: 4616 Conrad drive
Address 4616 Conrad drive
City La Mesa
State CA
Zip 91941
Contact Name: Grecia Huerta
Contact Phone
Number:
6197409894
Email Address: [email protected]
Are you located in La
Mesa?
Yes
Is your organization a
non-profit or a private
business?
Private Business
Are you partnering with
a non-profit
No
Visit La Mesa CA Community Marketing Initiative - 12-month Downtown La Mesa Marketing & Community Engagement Program

organization or other
business?
Name of non-profit
organization or
business you are
partnering with (if
applicable):

Field not completed.

Have you applied for
the La Mesa Village
Enhancement Fund
Program in prior years?
No
Amount of Total
Funding Requested:
50,000
What type of activity
are you requesting
funds for?
Advertisement
Please use the space
below to describe your
funding request.

Visit La Mesa Community Marketing Initiative
12-Month Downtown La Mesa Marketing & Community
Engagement Program
For nearly seven years, I have independently operated Visit La Mesa, a community-driven media platform dedicated to
promoting the businesses, restaurants, events, and people that make La Mesa special. I created Visit La Mesa simply because I love this city and saw the opportunity to build a positive platform that connects our community while supporting local businesses.

Since its creation, Visit La Mesa has become a trusted source for residents seeking recommendations, discovering local
businesses, and staying informed about community events.

Every photo, video, interview, and business feature has been created at my own expense because I believe that a thriving local community begins with supporting its small businesses.

With funding from the La Mesa Village Enhancement Fund
Program, I propose transforming Visit La Mesa into a
comprehensive 12-month marketing and community engagement initiative focused on increasing visibility, foot traffic, and economic activity within Parking District Number One while encouraging residents and visitors to explore everything Downtown La Mesa has to offer.

Rather than promoting only individual businesses, this initiative will market Downtown La Mesa as a destination encouraging people to shop local, dine locally, attend community events, and discover new businesses throughout the year.

Project Objectives
Increase awareness of Downtown La Mesa businesses.

Drive additional foot traffic into Parking District Number One.

Encourage residents to shop and dine locally.

Highlight local entrepreneurs and their stories.

Promote community events throughout the year.

Strengthen community pride and engagement.

Position Downtown La Mesa as one of San Diego County's
premier local destinations.

Each month, Visit La Mesa will professionally feature multiple businesses through high-quality videos, photography, and storytelling, giving local businesses marketing exposure they may not otherwise be able to afford.

Interviews with business owners, local artists, community leaders, and longtime residents, sharing the stories that make La Mesa unique.

Marketing campaigns built around summer activities, shopping seasons, restaurant promotions, and community celebrations designed to encourage year-round visitation.

Visitor Guides
Creation of digital guides highlighting shopping, dining, coffee shops, local services, entertainment, and hidden gems
throughout Downtown La Mesa.

Professional Photography & Video Library
Development of a growing library of professional images and videos that can continue promoting Downtown La Mesa well beyond the grant period.

Target Audience
La Mesa residents
Greater San Diego County residents
Families
Young professionals
Visitors exploring East County
Food enthusiasts
Shoppers
Tourists seeking authentic local experiences
Community Benefit
This initiative provides a direct economic benefit to businesses within Parking District Number One by increasing visibility, strengthening community awareness, and encouraging residents and visitors to support local businesses. Through consistent professional marketing, storytelling, and event promotion, Visit La Mesa will help generate increased customer traffic while

reinforcing Downtown La Mesa's identity as a vibrant destination for shopping, dining, and community events.

Professional photography & videography $15,000
Video editing & post-production $10,000
Digital advertising & audience targeting $8,000
Graphic design & campaign branding $3,500
Website enhancements & digital visitor resources $2,500 Production equipment, software & licensing $3,500
Community outreach, project management & reporting $5,500 Printing & promotional materials $2,000
Total Requested $50,000
Deliverables
Over the course of 12 months, Visit La Mesa will produce:
50+ professionally produced promotional videos
150+ professional photographs
100+ social media posts
12 monthly business spotlight campaigns
12 monthly event promotion campaigns
4 seasonal marketing campaigns
Multiple community interviews
Digital visitor guides
Quarterly performance reports summarizing reach, engagement, and campaign impact.

Supplemental Documentation
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Downtown Discovery Initiative
Grecia Huerta Visit La Mesa CA
Prepared by : Founder of
A 12-Month Marketing Campaign
Supporting Businesses in Parking
District Number One

Nearly seven years ago, I started Visit La Mesa with a simple goal: to shine a light on the businesses, people, and places that make our city special.

What began as a passion project has grown into a trusted community platform that residents rely on to discover local restaurants, events, small businesses, and everything
happening throughout La Mesa.

For nearly seven years, this work has been done voluntarily and at my own expense because I believe that when local
businesses thrive, our entire community benefits.

The Downtown Discovery Initiative represents the next chapter for Visit La Mesa a year-long marketing effort designed to strengthen Downtown La Mesa's economy through consistent, high-quality storytelling and digital promotion.

OUR STORY

Mission
To inspire residents and visitors to discover, support, and celebrate the businesses and community that make La Mesa unique.

Vision
To become La Mesa's leading community media platform and trusted destination for local stories, events, and business promotion.

Why This Matters
Small businesses are the heart of Downtown La Mesa.

Many business owners have incredible stories and exceptional products, but limited time and resources for marketing.

Professional storytelling helps bridge that gap.

Through consistent video, photography, and community
engagement, Visit La Mesa will provide businesses with
increased visibility while encouraging residents and visitors to shop local, dine local, and participate in community events.

ABOUT

VISIT LA MESA CA
ABOUT

VISIT LA MESA CA

Monthly Business Spotlights
Every month:
• Professional videos
• Professional photography
• Owner interviews
• Community stories
• Restaurant features
• Retail features
Event Coverage
Coverage of:
• Farmers Markets
• Oktoberfest
• Community festivals
• Local concerts
• Grand openings
THE 12-MONTH

MARKETING STRATEGY
THE 12-MONTH

MARKETING STRATEGY

Seasonal Campaigns
Spring in La Mesa
Summer Adventures
Shop Local Fall
Holiday Gift Guide
Restaurant Week
Coffee Trail
Hidden Gems
Women-Owned Businesses
Family Fun Guide
THE 12-MONTH

MARKETING STRATEGY
THE 12-MONTH

MARKETING STRATEGY

This initiative directly supports businesses within
Parking District Number One by:

Increasing awareness
Driving foot traffic
Promoting local events
Supporting small businesses
Encouraging residents to shop locally
Creating long-term marketing assets businesses
can continue using
Strengthening community pride
Expanding Downtown La Mesa's visibility
throughout San Diego County

COMMUNITY BENEFIT

Success will be measured through:
• Video views
• Social media reach
• Engagement
• Website traffic (if applicable)
• Business participation
• Event attendance
• Campaign impressions
• Community feedback
• Quarterly reports submitted to the City

MEASURING SUCCESS

Visit La Mesa has never been about growing a social media account.

It has always been about growing a community.

For nearly seven years I have invested my own time, equipment, creativity, and passion into telling the stories of La Mesa not because I was asked to, but because I believe our local businesses deserve to be seen and celebrated.

This funding would allow Visit La Mesa to expand from a volunteer initiative into a sustainable community marketing program that provides lasting value to the businesses and residents of Downtown La Mesa.

Together, we can continue telling the story of La Mesa one business, one event, and one community at a time.

WHY VISIT LA MESA CA?

DATE: September 8, 2026
TO: Mayor and Members of the City Council
FROM: Vice Mayor Lauren Cazares
VIA: Greg Humora, City Manager
SUBJECT: CONSIDERATION OF DIRECTING STAFF TO REVIEW TRAFFIC AND

PEDESTRIAN SAFETY CONDITIONS IN THE AREA OF LEE AVENUE,

SUNSET STREET, AND MAPLE AVENUE
Residents have raised concerns regarding traffic and pedestrian safety along Lee Avenue, Sunset Drive, and Maple Avenue, including narrow roadway widths, on-street parking, visibility, and pedestrian conditions in areas without sidewalks.

While initial Public Works speed data does not indicate a speeding issue, additional concerns remain regarding roadway design and pedestrian safety. This item requests a comprehensive traffic and pedestrian safety review of the three streets and consideration of potential safety improvements.