HomeMy WebLinkAbout01-20-26 EO&WR Committee Packet
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OTAY WATER DISTRICT
ENGINEERING, OPERATIONS, & WATER RESOURCES COMMITTEE MEETING
and
SPECIAL MEETING OF THE BOARD OF DIRECTORS
2554 SWEETWATER SPRINGS BOULEVARD
SPRING VALLEY, CALIFORNIA
BOARDROOM
TUESDAY
JANUARY 20, 2026
12:30 P.M.
This is a District Committee meeting. This meeting is being posted as a special meeting
in order to comply with the Brown Act (Government Code Section §54954.2) in the event that
a quorum of the Board is present. Items will be deliberated, however, no formal board actions
will be taken at this meeting. The committee makes recommendations
to the full Board for its consideration and formal action.
AGENDA
1. ROLL CALL
2. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO
SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD’S JU-
RISDICTION INCLUDING AN ITEM ON TODAY’S AGENDA
DISCUSSION ITEMS
3. ADOPT RESOLUTION #4467 APPROVING THE SECOND AMENDED AND RE-
STATED REGIONAL WASTEWATER DISPOSAL AGREEMENT (SARA), AND
ADOPT RESOLUTION #4468 APPROVING THE METROPOLITAN SEWERAGE
SYSTEM ADMINISTRATIVE AGREEMENT NO. 1 BETWEEN THE OTAY WATER
DISTRICT AND THE CITY OF SAN DIEGO (BETH GENTRY) [5 MINUTES]
4. AUTHORIZE THE GENERAL MANAGER TO AWARD A PURCHASE ORDER TO
SLOAN ELECTRIC, INC. IN AN AMOUNT NOT-TO-EXCEED $211,316.02 FOR THE
REPLACEMENTS OF PUMPS AND MOTORS AT THE 980-2 AND 850-2 PUMP
STATIONS (JUAN TAMAYO) [5 MINUTES]
BOARD MEMBERS ATTENDING:
Frank Rivera, Chair
Mark Robak
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All items appearing on this agenda, whether or not expressly listed for action, may be delib-
erated and may be subject to action by the Board.
The agenda, and any attachments containing written information, are available at the Dis-
trict’s website at www.otaywater.gov. Written changes to any items to be considered at the
open meeting, or to any attachments, will be posted on the District’s website. Copies of the
agenda and all attachments are also available by contacting the District Secretary at
(619) 670-2253.
If you have any disability which would require accommodation in order to enable you to par-
ticipate in this meeting, please call the District Secretary at 619-670-2253 at least 24 hours
prior to the meeting.
Certification of Posting
I certify that I posted a copy of the foregoing agenda near the regular meeting place of the
Board of Directors of Otay Water District, said time being at least 24 hours in advance of the
meeting of the Board of Directors (Government Code Section §54954.2).
/s/ Jenny Diaz, District Secretary
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: February 4, 2026
SUBMITTED BY: Beth Gentry Engineering Manager
PROJECT: S1502 - 001000
DIV. NO. All
APPROVED BY: Michael Long, Chief, Engineering
Jose Martinez, General Manager
SUBJECT: Adopt Resolutions No. 4467 and No. 4468 Approving the Second Amended and Restated Regional Wastewater Disposal Agreement
and Administrative Agreement No. 1 with the City of San Diego
GENERAL MANAGER’S RECOMMENDATION:
Adopt Resolution No. 4467 (Attachment B) approving the Second Amended and Restated Regional Wastewater Disposal Agreement (SARA); and Adopt Resolution No. 4468 (Attachment C) approving the Metropolitan Sewerage System Administrative Agreement No. 1 between the Otay Water District and the City of San Diego.
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
The Otay Water District (District) is in a long-standing Agreement with the City of San Diego (San Diego) and various local Participating Agencies (PAs) for service capacity in the Metropolitan
Sewerage System (Metro System), a regional wastewater collection, treatment, and disposal system. The operation and administration of the system is currently governed by the 2021 Amended and Restated Regional Wastewater Disposal Agreement (ARA) between San Diego and the PAs. Under the ARA, San Diego acts as one party, while the Metro
Joint Powers Authority (Metro JPA), founded by the PAs in 2000, represents and acts on their collective behalf.
AGENDA ITEM 3
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During the development of the ARA, six (6) items were deferred for future negotiation to expedite approval of the ARA. SARA and the accompanying Administrative Agreement No. 1 (AA-1), now before the
Parties, are intended to resolve the six (6) outstanding items pending approval by each PA’s governing body. The SARA and AA-1 have
been rigorously reviewed and recommended for the PAs approval by the Metro JPA and San Diego. BACKGROUND:
The District operates an independent, District-owned and maintained, wastewater system primarily consisting of gravity sewer pipes, force mains and pump stations serving residents and businesses within the
District’s sewer sphere of influence. Sewage flows are conveyed either to (1) Otay’s Ralph W. Chapman Water Reclamation Facility for
treatment to recycled water standards or (2) toward sewage infrastructure located in the County of San Diego where the District’s sewage is transported through the County’s infrastructure west to the City of San Diego. From there, flows are transported through San Diego’s regional wastewater infrastructure and treated at
the Point Loma Wastewater Treatment Plant (PLWTP) where they are discharged into the Pacific Ocean via the Point Loma ocean outfall, which was constructed in 1963. Historically, the District has been party to various agreements with
San Diego to handle the sewage that residents and businesses produce. These agreements evolved over the decades but have always been based
around the premise that San Diego’s advanced infrastructure handles District sewage flows and the District pays treatment and transmission charges to San Diego.
In the period from 1986 to 2002, a series of pollution-related legal rulings precipitated upgrades to the major treatment facilities within San Diego. In 1998, it was decided that the major facilities in San Diego should be “regional” facilities and managed as such. San
Diego would own and maintain the “regional” facilities and the Metro System PAs would lease capacity and provide operating and maintenance
funding. Metro JPA History: Consequently, in 1998, a Regional Wastewater
Disposal Agreement (1998 Agreement) was negotiated between San Diego and Metro System PAs (including the District). This 1998 Agreement
outlined the roles and responsibilities of the parties, a billing structure, and gave the Metro System PAs an advisory role through the creation of the Metro Commission (a Commission of the City of San
Diego with each PA having one appointed representative). The 1998 Agreement included language that outlines San Diego’s responsibility
to allow the Metro Commission to conduct due diligence and review
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shared costs related to the “regional” facilities, which were then renamed to “Metro” facilities.
In 2000, the PAs formed the Metro Wastewater Joint Powers Authority (Metro JPA) as a separate legal entity with the authority and
responsibility to take actions and make decisions pertaining to the 1998 Agreement in the PA’s mutual interests. As a legal entity, the Metro JPA can hire legal, engineering, financial, and administrative
consultants to act on behalf of the PAs and to carry out audits of San Diego’s Metro System operations. The Metro JPA and the Metro
Commission are the same group of appointed representatives and are treated as the same entity.
Members of the Metro JPA represent approximately 35 percent of the sewage flow into the Metro System. The Metro JPA is comprised of
twelve (12) PAs and includes the Cities of Poway, Chula Vista, Coronado, Del Mar, El Cajon, Imperial Beach, La Mesa, National City, the Lemon Grove Sanitation District, Padre Dam Municipal Water District, County of San Diego, and the Otay Water District. The JPA meets monthly in a publicly noticed meeting with San Diego to approve
costs, present updates, and discuss regional wastewater matters. The District is an original member of the Metro JPA and has an appointed board member representing the District on the Metro JPA Board. Several years ago, San Diego and the Metro JPA determined the need to
modernize the previous version of the 1998 Agreement. The 1998 Agreement was deemed inadequate to address the new needs of the Metro
System. In 2021, San Diego and the Metro System PAs amended the 1998 Agreement as a temporary measure while placing on hold six (6) items referred to as the “Parking Lot Items,” that would need to be
resolved through good faith negotiations and one or more amendments in the future.
DISCUSSION:
Over the past four (4) years, District representative to the Metro JPA worked through negotiations on the goals, objectives, and final
agreement language to arrive at the SARA, which is presented for Board consideration. All Metro JPA Board Members will present the SARA to their respective governing boards.
SARA Agreement: The Second Amended and Restated Regional Wastewater
Disposal Agreement (SARA) (Attachments D and E) amends the ARA between the San Diego and the twelve (12) PAs that use the Metro System. When unanimously approved by the PAs and San Diego, the SARA
will be adopted and will replace the ARA and be in place for the next forty years (40), through 2065. Major components include:
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• SARA updates the legal document that governs regional
cooperation on wastewater treatment and recycled/repurified water planning.
• SARA reorganizes the 1998 Agreement and modernizes agreement language.
• SARA resolves six (6) previously tabled “Parking Lot Items,”
which include: 1. The allocation of Pure Water Costs between San Diego’s
water system and the Metro System; 2. Alternative billing methodologies for Metro System costs; 3. The exclusion of costs related to the industrial
discharges, inspection, and monitoring program within San Diego;
4. The inclusion of costs for regional, non-Metro System potable reuse projects in calculating the capital expense rates; 5. A sample calculation of Repurified Water Revenue; and 6. Provisions for the conveyance and treatment of wastewater
generated at US military bases.
• SARA provides more flexibility for future adjustments to keep the document relevant.
Additionally, SARA addresses enforcement actions from regulatory
agencies as they relate to sanitary sewer overflows (SSO) in the event a regulatory agency imposes any penalty, fine, or enforcement action, to enforce regulatory requirements. San Diego will provide a summary of its findings regarding causation and a preliminary determination regarding the allocation of penalties. San Diego’s
determination will be subject to review by the Metro JPA. The updated language ensures that the PAs and qualified technical staff will be involved within 30 days of submitting an SSO report. San Diego will
be required to provide a copy of any report submitted to a regulatory agency in response to any enforcement action.
Administrative Agreement No. 1 (AA-1): As part of the SARA process, a new framework was established for specific programmatic or ministerial type changes to be accompanied through “Administrative Agreements.” This prevents the future need to alter the SARA because
of program changes. Each Administrative Agreement may be approved individually by a PA through a delegation of authority to that PA’s
Metro Commission/Metro JPA Board Member and, provided the approval threshold is reached, shall become part of the approved SARA.
AA-1 addresses the pretreatment program conducted by San Diego. The 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 San Diego. Components
of the AA-1 include:
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• Inspection and permitting billing will now be administered by San Diego. Previously, the District was billed by San Diego;
however, now San Diego will directly bill the business owners. • Legal language was clarified related to the responsibility of
San Diego and each PA related to pretreatment. AA-1 requires that Food Service Establishments (FSEs) and dischargers
of Fats, Oil, and Grease (FOG) be regulated and monitored by the District and not San Diego. The District must adopt an ordinance by
June 30th following the effective date of the AA-1, conform to the pretreatment ordinance of San Diego, and enforce the District code relating to rules and regulations for wastewater discharge from FSEs.
Conclusion: Considering the District’s decades-long reliance on and
participation in the Metro System, lack of District-owned treatment and discharge facilities, geographic proximity to the regional wastewater system, and the cost efficiencies of San Diego’s scale, continued participation in the Metro System remains essential. The SARA preserves the District’s wastewater service sustainability,
reliably, and without interruption. It renews the cooperative framework between the Metro JPA and San Diego, ensuring the District’s representation, treatment capacity, and advisory role for the next forty (40) years. District staff recommend approval of the resolutions adopting SARA and AA-1, with or without minor non-
substantive revisions. Both agreements were developed during numerous meetings and extensive negotiations between the Metro JPA and San
Diego and are recommended for adoption on behalf of all PAs. FISCAL IMPACT: Joe Beachem, Chief Financial Officer
Based on a review of the financial budget, the Project Manager
anticipates that the fiscal impact of the SARA agreement is
anticipated to be minor and in general alignment with current costs.
SARA will result in a different method of calculating charges paid by
the District.
STRATEGIC GOAL:
This Project supports the District’s Mission statement, “To provide exceptional water and wastewater service to its customers, and to
manage District resources in a transparent and fiscally responsible manner,” and the General Manager’s Vision, "To be a model water
agency by providing stellar service, achieving measurable results, and continuously improving operational practices."
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LEGAL IMPACT: The Second Amended and Restated Agreement changes terms of the
agreement for discharge of Otay sewage into the City’s Metro System. Otay legal counsel participated in several roundtable discussions
with other Participating Agency legal counsels and consulted with the Metro JPA legal counsel. Otay legal counsel found both the SARA and Administrative Agreement No. 1 acceptable.
BG/ML:jf
Attachments: Attachment A – Committee Action Attachment B – Resolution No. 4467 Approving the Second Amended
Restated Regional Wastewater Disposal Agreement Attachment C – Resolution No. 4468 Approving the Metropolitan
Sewerage System Administrative Agreement No. 1 between Otay Water District and the City of San Diego Attachment D – SARA Agreement Attachment E - SARA Exhibits Attachment F – Administrative Agreement No. 1
Attachment G - Presentation Slides
ATTACHMENT A SUBJECT/PROJECT:
S1502-001000
Adopt Resolutions No. 4467 and No. 4468 Approving the
Second Amended and Restated Regional Wastewater Disposal Agreement and Administrative Agreement No. 1 with the City of San Diego
COMMITTEE ACTION:
The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on January 20, 2026. The
Committee supported staff’s recommendation.
NOTE: The “Committee Action” is written in anticipation of the Committee
moving the item forward for Board approval. This report will be sent to the Board as a Committee approved item or modified to reflect any
discussion or changes as directed by the Committee prior to presentation to the full Board.
ATTACHMENT B
RESOLUTION NO. 4467
RESOLUTION OF THE BOARD OF DIRECTORS OF THE OTAY DISTRICT APPROVING THE SECOND AMENDED AND RESTATED REGIONAL WASTEWATER DISPOSAL AGREEMENT AND AUTHORIZING THE GENERAL MANAGER TO SIGN THE AGREEMENT
WHEREAS, the 1998 Regional Wastewater Disposal Agreement between the City of San Diego and the participating agencies previously
set planning, capacity rights and cost allocations of wastewater facilities in the Regional Metro Wastewater System; and
WHEREAS, on August 1, 2018, the Otay Water District approved the First Amended and Restated Wastewater Disposal Agreement which
addressed amendments related to the Pure Water Program and allocation of costs and financial protection of wastewater rate
payers; and
WHEREAS, further necessary modifications to the First Amended Regional Wastewater Disposal Agreement precipitated a Second Amended and Restated Wastewater Disposal Agreement clarifying
and expanding on items related to the wastewater billing methodology, agency roles and responsibilities, and cost-sharing approaches for Phase 1 and Phase 2 of the Pure Water Program; and
WHEREAS, the Second Amended and Restated Agreement was considered and approved by Metro Commission/Metro JPA on October 2, 2025, with a vote of 11-1; and
WHEREAS, each participating agency and the City of San Diego are
required to approve the Agreement independently, with the implementation date July 1st following the last participating
agency approval.
NOW, THEREFORE, BE IT AND IT IS HEREBY RESOLVED that the Otay
Water District Board of Directors approves the Second Amended and Restated Regional Wastewater Disposal Agreement and
authorizes the General Manager to sign the Agreement.
BE IT FURTHER RESOLVED should the Agreement be modified and if
the modifications are non-substantive changes or Administrative Agreements with non-substantive impacts to the Otay Water
District then the General Manager is authorized to sign such a modified agreement at the discretion of the General Manager.
ATTACHMENT B
PASSED, ADOPTED, AND APPROVED at a Regular Meeting of the Board
of Directors of the Otay Water District on the 4th day of February 2026, by the following vote:
AYES: NOES:
ABSENT: ABSTAIN:
President
ATTEST:
Secretary
I HEREBY CERTIFY that the foregoing Resolution No. 4467 was duly adopted by the BOARD OF DIRECTORS of the OTAY WATER DISTRICT at
a regular meeting thereof held on the 4th day of February, 2026 by the following vote:
Ayes:
Noes:
Abstain:
Absent:
District Secretary
ATTACHMENT C
RESOLUTION NO. 4468
RESOLUTION OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT APPROVING METROPOLITAN SEWERAGE SYSTEM ADMINISTRATIVE AGREEMENT NO. 1 FOR UNIFIED MANAGEMENT OF INDUSTRIAL WASTE DISCHARGE PRETREATMENT AND ENHANCED SOURCE CONTROL PROGRAMS
WHEREAS, the 1998 Regional Wastewater Disposal Agreement between the City of San Diego and the participating agencies previously
set planning, capacity rights and cost allocations of wastewater facilities in the Regional Metro Wastewater System; and
WHEREAS, on August 1, 2018, the Otay Water District approved the First Amended and Restated Wastewater Disposal Agreement which
addressed amendments related to the Pure Water Program and allocation of costs and financial protection of wastewater rate
payers; and
WHEREAS, further necessary modifications to the First Amended Regional Wastewater Disposal Agreement precipitated a Second Amended and Restated Regional Wastewater Disposal Agreement
clarifying and expanding on items related to the wastewater billing methodology, agency roles and responsibilities, and cost sharing approaches for Phase 1 and Phase 2 of the Pure Water Program; and
WHEREAS, Administrative Agreement No. 1 to the Second Amended and
Restated Regional Wastewater Disposal Agreement addresses specific programmatic details related to the Industrial Waste Discharge Pretreatment and Enhanced Source Control Program, which is coordinated by City of San Diego, and includes permitting, inspection, compliance monitoring, source control mechanisms,
laboratory work, enforcement, program administration and overhead, and claims management.
NOW, THEREFORE, BE IT AND IT IS HEREBY RESOLVED that the Otay Water District Board of Directors approves Administrative Agreement No.
1 to the Second Amended and Restated Regional Wastewater Disposal Agreement, and authorizes the General Manager to sign the
Administrative Agreement.
BE IT FURTHER RESOLVED, for any future Metropolitan Sewerage
Administrative Agreements with non-substantive impacts to the Otay Water District, the General Manager is authorized to sign such a
modified agreement at the discretion of the General Manager.
PASSED, ADOPTED, AND APPROVED at a Regular Meeting of the Board of
ATTACHMENT C
Directors of the Otay Water District on the 4th day of
February 2026, by the following vote:
AYES:
NOES: ABSENT:
ABSTAIN:
President
ATTEST:
Secretary
I HEREBY CERTIFY that the foregoing Resolution No. 4468 was duly adopted by the BOARD OF DIRECTORS of the OTAY WATER DISTRICT at
a regular meeting thereof held on the 4th day of February, 2026 by the following vote:
Ayes:
Noes:
Abstain:
Absent:
District Secretary
10-23-25
4907-3419-6844
SECOND AMENDED AND RESTATED
REGIONAL WASTEWATER DISPOSAL AGREEMENT
BETWEEN
THE CITY OF SAN DIEGO
AND
THE PARTICIPATING AGENCIES
IN
THE METROPOLITAN SEWERAGE SYSTEM
ATTACHMENT D
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4907-3419-6844
TABLE OF CONTENTS
Page
1. DEFINITIONS ....................................................................................................................3
2. OWNERSHIP AND OPERATION OF THE METRO SYSTEM......................................9
2.1 Rights of the Parties.................................................................................................9
2.2 Metro System Services............................................................................................9
2.3 Flow Commitment.................................................................................................10
2.4 Funding Obligations ..............................................................................................10
2.5 Limitations on Types and Condition of Wastewater.............................................11
2.6 Enforcement Actions.............................................................................................11
2.7 Right of First Refusal.............................................................................................13
2.8 Uniform Enforcement of Pretreatment Program by City ......................................14
2.9 Wastewater Generated at Military Bases...............................................................16
3. CAPACITY RIGHTS........................................................................................................16
3.1 Contract Capacity ..................................................................................................16
3.2 Inter-Agency Transfers of Contract Capacity........................................................16
3.3 New Contract Capacity..........................................................................................17
3.4 Reductions in Metro System Capacity ..................................................................18
3.5 Restrictions on Veto of Transfers and Acquisitions of Capacity ..........................18
3.6 Amendments to Exhibits B....................................................................................18
3.7 The South Bay Ocean Outfall................................................................................18
4. FINANCE, BUDGETING, AND ACCOUNTING: PAYMENT AND MONITORING
PROVISIONS....................................................................................................................18
4.1 Payment for Metro System Facilities ....................................................................18
4.2 Payment for Additional Metro System Facilities ..................................................19
4.3 Payment for Operation and Maintenance..............................................................19
4.4 Charges Based on Flow, Strength and Fixed Capacity: Exception.......................19
4.5 Monitoring Flow and Strength...............................................................................21
5. FINANCE, BUDGETING, AND ACCOUNTING: SYSTEM OF CHARGES...............22
5.1 Charges Authorized...............................................................................................22
5.2 Functional Allocated Billing (FAB)......................................................................22
5.3 Metro System Costs...............................................................................................23
5.4 Excluded Costs ......................................................................................................23
5.5 Metro System Revenues and Allocations..............................................................23
5.6 Excluded Revenue.................................................................................................24
5.7 Estimate and Billing Schedule and Year End Adjustment....................................24
5.8 Financial Statements..............................................................................................25
5.9 Debt Financing.......................................................................................................25
5.10 Allocation of Operating Reserves and Debt Service Coverage.............................26
5.11 Amending the System of Charges .........................................................................26
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6. FINANCE, BUDGETING, AND ACCOUNTING: PURE WATER PROGRAM COST
ALLOCATION AND REVENUES – PHASE 1 ..............................................................26
6.1 North City Water Reclamation Plant Modification...............................................26
6.2 New, Expanded or Modified Metro System Facilities ..........................................26
6.3 Costs Excluded from Metro System Costs – Phase 1............................................26
6.4 North City Water Reclamation Plant Improvement Costs Included as Metro
System Costs..........................................................................................................27
6.5 Reallocation of PWP Costs incurred since FY 2014.............................................27
6.6 Revenue Sharing for Repurified Water .................................................................28
6.7 Capital Expense Rate.............................................................................................30
6.8 Amending Pure Water Program Cost Allocation and Revenues – Phase 1...........32
7. FINANCE, BUDGETING, AND ACCOUNTING: PURE WATER PROGRAM COST
ALLOCATION AND REVENUES – PHASE 2 ..............................................................32
7.1 Pure Water Program – Phase 2..............................................................................32
7.2 Costs Excluded As Metro System Costs ...............................................................32
7.3 Revenue Sharing for Repurified Water – Phase 2.................................................33
7.4 Capital Expense Rate – Phase 2.............................................................................33
8. FUTURE NEGOTIATIONS AND COOPERATION ......................................................34
9. THE METRO COMMISSION..........................................................................................34
9.2 Advisory Responsibilities of Metro JPA...............................................................34
9.3 Delegation of Decision-Making Authority of the Metro JPA...............................35
9.4 Standing.................................................................................................................35
10. DISPUTE RESOLUTION.................................................................................................35
10.1 Mandatory Non-Binding Mediation......................................................................35
10.2 Selection of Mediator ............................................................................................35
10.3 Mediation Expenses...............................................................................................35
10.4 Conduct of Mediation............................................................................................35
10.5 Mediation Results..................................................................................................36
10.6 Performance Required During Dispute .................................................................36
11. INSURANCE ....................................................................................................................36
11.1 City Shall Maintain All Required Insurance .........................................................36
11.2 Substantially Equivalent Coverage........................................................................36
12. INTERRUPTION OF SERVICE ......................................................................................36
13. NOTICES REQUIRED UNDER AGREEMENT.............................................................37
14. EFFECTIVE DATE AND EXPIRATION........................................................................37
14.1 Effective Date........................................................................................................37
14.2 Expiration ..............................................................................................................37
14.3 Contract Capacity Rights Survive Expiration........................................................37
14.4 Abandonment.........................................................................................................38
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15. ADMINISTRATIVE AGREEMENTS.............................................................................38
15.1 Use and Process for Administrative Agreements..................................................38
16. GENERAL.........................................................................................................................39
16.1 Exhibits..................................................................................................................39
16.2 Electronic Exhibits and Attachments.....................................................................39
16.3 Amendments to Agreement...................................................................................40
16.4 Construction of Agreement....................................................................................43
16.5 Declarations Re: Agreement..................................................................................44
16.6 Right to Make Other Agreements..........................................................................44
16.7 Statute of Limitations to Resolve Billing Issues....................................................44
16.8 Counterparts and Electronic Signatures.................................................................45
16.9 Transparency..........................................................................................................45
16.10 Incorporation of Recitals .......................................................................................45
16.11 Joint Exercise of Power.........................................................................................45
ACRONYM LIST:
ARA Amended and Restated Regional Wastewater Disposal Agreement
COD Chemical Oxygen Demand
CIP Capital Improvement Project(s)
CPM Construction Project Management
CWA San Diego County Water Authority
ECAWP JPA East County Advanced Water Purification Joint Powers Authority
FAB Functional Allocated Billing
MBC Metropolitan Biosolids Center
MGD Millions of Gallons per Day
NCWRP North City Water Reclamation Plant
NPDES National Pollutant Discharge Elimination System
PLWTP Point Loma Wastewater Treatment Plant
PWP Pure Water Program
RSDP Reject Stream from Demineralization Process
SBOO South Bay Ocean Outfall
SBWRP South Bay Water Reclamation Plant
TSS Total Suspended Solids
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SECOND AMENDED AND RESTATED REGIONAL WASTEWATER DISPOSAL
AGREEMENT
THIS SECOND AMENDED AND RESTATED REGIONAL WASTEWATER
DISPOSAL AGREEMENT (“Agreement”) is made and entered into this ___ day of
______________, 20___, by and between the CITY OF SAN DIEGO, a municipal corporation
(the “City”), on the one hand; and the CITY OF CHULA VISTA, a municipal corporation; the
CITY OF CORONADO, a municipal corporation; the CITY OF DEL MAR, a municipal
corporation; the CITY OF EL CAJON, a municipal corporation; the CITY OF IMPERIAL
BEACH, a municipal corporation; the CITY OF LA MESA, a municipal corporation; the LEMON
GROVE SANITATION DISTRICT, a political subdivision of the State of California; the CITY
OF NATIONAL CITY, a municipal corporation; the CITY OF POWAY, a municipal corporation;
the OTAY WATER DISTRICT, a political subdivision of the State of California; the PADRE
DAM MUNICIPAL WATER DISTRICT, a political subdivision of the State of California; and
the SAN DIEGO COUNTY SANITATION DISTRICT, a political subdivision of the State of
California (collectively, the “Participating Agencies”), on the other hand. The City and the
Participating Agencies may be referred to herein individually as a “Party,” and collectively as the
“Parties.”
RECITALS
WHEREAS, the City and the Participating Agencies (or their predecessors in interest)
entered into that certain Regional Wastewater Disposal Agreement dated May 18, 1998 (the “1998
Agreement”), which provided, among other things, for certain contract rights to capacity in the
Metropolitan Sewerage System, a system of wastewater conveyance, treatment, and disposal
facilities (“Metro System”) and the establishment of a mechanism to fund the planning, design,
construction, operation, and maintenance of the Metro System by the City and the Participating
Agencies; and
WHEREAS, the purposes of the 1998 Agreement were: (1) to replace the prior-existing
sewage disposal agreements between the City and the Participating Agencies; (2) to provide
certain contract rights to capacity in the Metro System to the Participating Agencies; (3) to
establish a mechanism to fund the planning, design, construction, operation and maintenance of
the Metro System by the City and the Participating Agencies as necessary to provide hydraulic
capacity, and to comply with applicable law and with generally accepted engineering practices;
and (4) to establish a system of charges which allocates the costs of the planning, design and
construction of such new wastewater conveyance, treatment and disposal facilities as are necessary
solely to provide for new capacity on a fair and equitable basis; and
WHEREAS, on April 29, 2014 the San Diego City Council gave its approval and support
for the Pure Water San Diego program by adoption of Resolution No. R-308906, which approved
and supported the City’s efforts to develop an implementation strategy to offload wastewater flow
from the Point Loma Wastewater Treatment Plant through implementation of potable reuse,
resulting in effluent discharged to the Pacific Ocean being equivalent to what would be achieved
by upgrading the Point Loma Wastewater Treatment Plant to a secondary treatment plant
(secondary equivalency); and
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4907-3419-6844
WHEREAS, the City is implementing a phased, multi-year program designed to achieve
compliance with the Clean Water Act and regionally produce up to 83 million gallons per day of
safe, reliable potable water using new, expanded, or modified facilities, some of which will include
Metro System facilities, in order to achieve secondary equivalency at the Point Loma Wastewater
Treatment Plant; and
WHEREAS, the Pure Water Program will not only benefit the City by producing repurified
water, but also the Participating Agencies and their wastewater customers, especially if secondary
equivalency is recognized through federal legislation amending the Clean Water Act. Specifically,
implementation of the Pure Water Program will reduce wastewater discharges to the Point Loma
Wastewater Treatment Plant, part of the Metro System where a large portion of the Participating
Agencies’ wastewater is currently treated and disposed by discharging it into the Pacific Ocean.
By diverting wastewater from the Point Loma Wastewater Treatment Plant and reducing the
effluent discharged into the Pacific Ocean, the City and the Participating Agencies will potentially
avoid billions of dollars in unnecessary capital, financing, energy, and operating costs to upgrade
the Point Loma plant to secondary treatment at full capacity. Avoiding such costs would result in
significant savings for regional wastewater customers and achieve environmental benefits by
reducing ocean discharge; and
WHEREAS, on or around November 2019, the East County Advanced Water Purification
Joint Powers Authority (the “ECAWP JPA”) was created to implement a potable reuse program
to improve local and regional water supply reliability to supply advanced treated recycled water
to East San Diego County through the East County Advanced Water Purification Project (the
“ECAWP Project”). The ECAWP Project is planned to capture and treat approximately 15
million gallons per day of wastewater that would otherwise be disposed of in the Metro System to
produce an annual average supply of approximately 11.5 million gallons per day of new local
drinking water. By diverting some wastewater and wastewater content away from the Metro
System, the ECAWP Project has the ability to aid and contribute towards the City and region’s
efforts to produce a regional annual average of up to 83 million gallons per day of water suitable
for potable reuse by December 31, 2035, as described in the Cooperative Agreement in Support of
Pure Water San Diego executed by the City and certain environmental stakeholders on December 9,
2014. The ECAWP Project includes a residuals bypass system that will convey RSDP (as defined
herein) from the advanced water purification facility, and Centrate from the solids dewatering
process of the solids handling facility, to an existing regional sewage gravity pipeline owned and
operated by the City for treatment and disposal; and
WHEREAS, effective on or around August 22, 2021, the City and the Participating
Agencies amended the 1998 Agreement by executing an Amended and Restated Regional
Wastewater Disposal Agreement (the “ARA”) to address the costs and revenues associated with
Phase 1 of the Pure Water Program, including specific cost allocations related to the construction,
expansion, and/or modification of Metro System facilities and Water Repurification System
facilities designed to produce up to 30 million gallons per day of Repurified Water (“Phase 1”).
The ARA provided that within one year of its effective date, the Parties intended to meet and
negotiate in good faith regarding one or more amendments to the ARA or to its Exhibits to address
multiple outstanding items described in Section 2.9 of the ARA; and
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WHEREAS, Section 14.2 of the ARA provided that the Parties may amend the ARA by a
written agreement between the City and all Participating Agencies stating the Parties’ intent to
amend or supplement the agreement; and
WHEREAS, in an effort to address in good faith the outstanding items described in
Section 2.9 of the ARA, and comprehensively and equitably address the costs, revenues, and
billing system associated with the Pure Water Program and the related construction, expansion,
and/or modification of Metro System facilities beyond Phase 1, the City and Participating
Agencies wish to amend and restate the ARA as provided herein.
NOW, THEREFORE, in consideration of the mutual promises set forth in this Agreement,
the City and the Participating Agencies restate and amend the ARA and agree as follows:
1. DEFINITIONS
1.1 Administrative Agreement shall refer to a formal binding contract, approved
under the process set forth in Section 15 of this Agreement, which implements technical,
administrative, operational, and/or procedural details of this Agreement.
1.2 Administrative Approval is an approval mechanism authorized by this Agreement
that refers to a City administrative process by which the subject of a particular action is presented
to the City’s Director of the Public Utilities Department or their designee for approval, based on
discussion and evaluation according to sound engineering standards if applicable, and any
additional requirements related to review for the action requiring the City’s Administrative
Approval as set forth in this Agreement.
1.3 Annual Average Daily Flow is the number, in millions of gallons of wastewater
per day (“MGD”), calculated by dividing total Flow on a fiscal year basis by the number of days
in the applicable year, which is a term used for billing purposes.
1.4 ARA shall mean the Amended and Restated Regional Wastewater Disposal
Agreement between the City and the Participating Agencies effective August 22, 2021.
1.5 Capital Expense Rate shall mean the same as the term is defined in Section 6.7.2.
1.6 Capital Improvement Costs means all costs of the planning, design, financing,
construction, and/or replacement necessary to render a capital project facility fully operational,
including upgrades and reconstruction, consistent with the City’s policies and procedures. This
includes costs for planning and environmental work; procurement of consultants or contractors to
perform such work; construction management; investigative studies and pre-design work; labor
and materials; inspection and testing; and financing cost including interest on financial
instruments.
1.7 Centrate shall mean the liquid byproduct that results from the dewatering of
digested solids as part of wastewater treatment processes.
1.8 Chemical Oxygen Demand or COD means the measure of the chemically
decomposable material in wastewater, as determined by the procedures specified in the most
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current edition of “Standard Methods for the Examination for Water and Wastewater,” or any
successor publication which establishes the industry standard.
1.9 City shall mean and refer to the City of San Diego.
1.10 City’s Water Utility shall mean any and all facilities, properties, improvements
and works at any time owned, controlled or operated by the City as part of the public utility system
of the City for water purposes, for the development, obtaining, conservation, production, storage,
treatment, transmission, furnishing and distribution of water and its other commodities or
byproducts for public and private use (whether located within or without the City), and any related
or incidental operations designated by the City as part of the Water System, including reclaimed
and re-purified water.
1.11 City Water Utility PWP Costs are those Pure Water Program costs allocated to
the City’s Water Utility and therefore excluded as Metro System Costs under Section 6.3 of this
Agreement.
1.12 Contract Capacity is the contractual right possessed by each Participating Agency
to discharge wastewater into the Metro System pursuant to this Agreement up to the limits set forth
in Exhibit B, Distribution of Wastewater System Capacity Rights, attached hereto.
1.13 Contract Capacity Transfers shall refer to the capacity transfers initiated based
on Metered Flow and Strength data using the methodology set forth in Exhibit E, Methodology
for Contract Capacity Transfers, which change a Participating Agency’s Contract Capacity, as
set forth more fully in Section 4.4.3.1 and 4.4.3.2. These changes will generally be made to a single
Participating Agency’s annual Contract Capacity to correct capacity exceedances but can also be
made to reduce a Participating Agency’s Contract Capacity.
1.14 CWA shall mean the San Diego County Water Authority.
1.15 ECAWP JPA shall mean the East County Advanced Water Purification Joint
Powers Authority. The ECAWP JPA itself is not a Participating Agency or a Party to this
Agreement.
1.16 ECAWP JPA Agencies shall mean collectively the City of El Cajon, the Padre
Dam Municipal Water District, and the San Diego County Sanitation District.
1.17 ECAWP Project shall mean the ECAWP JPA’s project to capture and treat
wastewater that would otherwise be disposed of in the Metro System to produce an annual average
supply of approximately 11.5 MGD of new local drinking water, as well as other byproducts such
as recycled water and energy recovery facilities.
1.18 Fixed Capacity shall mean the capacities for Monthly Average Daily Flow,
Incremental Peak Flow, RSDP, COD and TSS for each agency as set forth in Exhibit B.
1.19 Fixed Capacity Charge shall mean the charges set forth in Exhibit B that are
identified as “Fixed Capacity Charges” that represent the Parties’ proportional charges for
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maintaining the Metro System. Items such as debt service are also included in the Fixed Capacity
Charges.
1.20 Flow shall refer to the flow of wastewater discharged by the City and/or one or
more Participating Agency/ies into the Metro System.
1.21 Functional Allocated Billing or FAB shall mean the method for distributing all
capital, operations, and maintenance Metro System Costs and Revenues on an annual basis by
grouping expenses according to their purposes and the current approved Functional-Design
Methodology.
1.22 Functional-Design Methodology shall mean the process of allocating fixed and
variable Operation and Maintenance Costs and Capital Improvement Costs to Flow, RSDP and
Strength parameters recognizing the benefits of both the design criteria and the primary function
of a unit process.
1.23 Incremental Peak Flow shall mean the Peak Flow minus the Monthly Average
Daily Flow.
1.24 Industrial Wastewater means all wastewater, excluding domestic wastewater, and
shall include all wastewater from any producing, manufacturing, processing, institutional,
commercial, service, agricultural, or other operation. These may also include wastes of human
origin similar to domestic wastewater.
1.25 Industrial User means a discharger of Industrial Wastewater to a public sewer. A
Participating Agency may be an Industrial User.
1.26 Joint Administrative Approval Process is an approval process authorized by this
Agreement by which an Administrative Agreement may be created, revised, supplemented,
replaced or terminated, subject to the review and approval process set forth more fully in
Section 15.
1.27 MBC Return shall mean and refer to Centrate created at the Metropolitan
Biosolids Center, 5240 Convoy St, San Diego, CA 92111. MBC Return shall contain Metered
Flow, TSS and COD.
1.28 Metered Flow shall mean the amount or volume of wastewater captured by meters
that exist throughout the Metro System, estimates from unit count areas, or agreed upon estimates
of flows where unit counts are not appropriate. When meters are out of service, estimates can be
used to fill in data gaps. These meters, which may or may not be owned by the City, are further
defined in Exhibit F, Metro System Flow Formulas and Sampling Locations, which may be
amended from time to time.
1.29 Metro Commission or Metro JPA is the advisory body described under Section 9.
1.30 Metro System Costs shall mean, at a minimum, those costs set forth in Section 5.3
and as otherwise set forth in this Agreement.
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1.31 Metro System Revenues are those revenues set forth in Section 5.5.
1.32 Metropolitan Sewerage System or Metro System shall mean and consist of those
facilities which are listed, shown and/or described in Exhibit A, Metro Facilities (Electronic
Exhibit); file name: [Enter]; time stamp of file, software used to open and view file including
version; included herewith as CD-ROM/DVD-ROM, including any amendments thereto
authorized by this Agreement. Exhibit A includes current constructed facilities and proposed
future facilities.
1.33 Monthly Average Daily Flow is the number, in MGD, calculated by dividing total
Flow on a monthly basis by the number of days in that month.
1.34 Municipal System shall mean the City’s wastewater collection system, consisting
of pipelines and pump stations, which collects wastewater within the City of San Diego and
conveys it to the Metropolitan Sewerage System for treatment and disposal.
1.35 New Contract Capacity shall mean capacity in excess of the Contract Capacity
set forth in Exhibit B and authorized subject to Section 3.3.
1.36 North City Water Reclamation Plant or NCWRP is the wastewater treatment
facility located at 4949 Eastgate Mall in San Diego, which includes four major processes: primary
treatment, secondary treatment, tertiary treatment, and disinfection.
1.37 Operation and Maintenance Costs are the costs to operate, maintain, manage,
repair, and keep the Metro System conveyance, disposal, treatment, and reuse facilities functioning
in accordance with all applicable laws, rules, and regulations.
1.38 Participating Agencies shall mean all the local governments and agencies that
executed this Agreement other than the City.
1.39 Peak Flow represents the wastewater flow in millions of gallons of wastewater per
day that is captured in the highest 1-hour period in a fiscal year.
1.40 Point Loma Wastewater Treatment Plant or PLWTP is the main City
wastewater treatment plant with a Monthly Average Daily Flow capacity of 240 million gallons
per day and a peak flow capacity of 432 million gallons per day (as of the date of this Agreement).
It is an advanced primary treatment plant which includes four major processes: screening, grit
removal, chemically enhanced sedimentation, and digestion.
1.41 Pooled Capacity shall refer to the capacity in the Metro system greater than that
which has been designated in Exhibit B. Pooled Capacity amounts are shown in Exhibit E,
Methodology for Contract Capacity Transfers, and may be recalculated from time to time as set
forth more fully in this Agreement.
1.42 Postage Stamp Methodology is a methodology that can allocate a single uniform
cost to any of the annual Contract Capacity cost parameters identified in Exhibit B. This
methodology assumes that even though a particular discharger may not utilize all of the
infrastructure, all dischargers into the Metro System benefit from the shared infrastructure.
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1.43 Projected Future Strength and Flow Amounts are the five (5) values described
below:
1.43.1 Projected Future Metro Flow is the estimated amount of Monthly
Average Daily Flow, stated in millions of gallons per day (MGD), that the City and each
Participating Agency are projected to have in a designated future year – currently, the 2050 fiscal
year. Projected Future Metro Flow for each Party is stated in Exhibit B.
1.43.2 Projected Future Incremental Peak Flow is the estimated amount of
Annual Incremental Peak Flow, stated in millions of gallons per day (MGD), that the City and
each Participating Agency are projected to have in a designated future year – currently, the 2050
fiscal year. Projected Future Incremental Peak Metro Flow for each Party is stated in Exhibit B.
1.43.3 Projected Future RSDP Flow is the estimated amount of RSDP Flow,
stated in millions of gallons per day (MGD), that the City and each Participating Agency are
projected to have in a designated future year – currently, the 2050 fiscal year. Projected Future
RSDP Flow for each Party is stated in Exhibit B.
1.43.4 Projected Future COD Flows is the estimated amount of Chemical
Oxygen Demand (COD), stated in pounds per day, that the City and each Participating Agency are
projected to have in a designated fiscal year – currently, the 2050 fiscal year. Projected Future
COD Flows for each Party are stated in Exhibit B.
1.43.5 Projected Future TSS Flows is the estimated amount of Total Suspended
Solids (TSS) stated in pounds per day, that the City and each Participating Agency are projected
to have in a designated fiscal year – currently, the 2050 fiscal year. Projected Future TSS Flows
for each Party are stated in Exhibit B.
1.44 Pure Water Capital Melded Percentage is the proportionate share stated in
Column 7 of Exhibit B (formerly Column 12 of Exhibit G of the ARA), by which Pure Water
Program Capital Improvement Costs, Repurified Water Revenue, and the Capital Expense Rate
will be allocated among the City and the Participating Agencies. The Pure Water Capital Melded
Percentage is based on each Party’s proportionate share of Projected Future Metro Flow, Projected
Future TSS Flows, and Projected Future COD Flows, which proportions are weighted as described
in Footnote 5 of Exhibit B.
1.45 Pure Water Program or PWP is the City’s phased, multi-year program designed
to produce up to 83 million gallons per day of Repurified Water using new, expanded, or modified
facilities, some of which will include Metro System facilities.
1.46 PWP Phase 1 or Phase 1 shall mean the first phase of the Pure Water Program,
which modifies/constructs Metro System and Water Repurification System facilities and is
designed to produce an annual average of 30 million gallons per day of Repurified Water.
1.47 PWP Phase 2 or Phase 2 shall mean the second phase of the Pure Water Program
which modifies/constructs Metro System and Water Repurification System facilities and is
designed to produce up to an additional annual average of 53 million gallons per day of Repurified
Water.
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1.48 Recycled Water shall have the definition set forth in Title 22, Division 4 of the
California Code of Regulations and shall mean water which, as a result of treatment of wastewater,
is suitable for a direct beneficial use or a controlled use that otherwise could not occur.
1.49 Reject Stream from Demineralization Process or RSDP is a flow reject stream
and treatment byproduct from a demineralization process at a potable reuse facility. Separately
conveyed, it bypasses all secondary wastewater treatment processes. This flow primarily contains
liquid and salts.
1.50 Repurified Water shall mean water which, as a result of advanced treatment of
Recycled Water, is suitable for use as a source of domestic (or potable) water supply.
1.51 Repurified Water Revenue is the cost savings that will be realized when the City’s
Water Utility’s annual costs per-acre foot for Repurified Water, including City Water Utility PW
Costs, are less than the purchase costs per-acre foot for comparable water from the San Diego
County Water Authority, as further described in Section 6.
1.52 Residuals shall mean RSDP and Centrate. In the future, Residuals may include
other waste byproducts if the Parties agree in writing that other byproducts may be discharged into
the Metro System.
1.53 South Bay Ocean Outfall or SBOO is the facility that is jointly owned by the
International Boundary & Water Commission (U.S. Section IBWC) and the City. The outfall
conveys and discharges treated effluent from the IBWC’s International Wastewater Treatment
Plant and treated effluent from the City’s South Bay Water Reclamation Plant. As of the date of
this Agreement, the outfall has a current Average Daily Flow Capacity of 174 million gallons per
day. As of the date of this Agreement, the City owns 39.94% of the capacity of the outfall and the
balance of the capacity is owned by the IBWC.
1.54 South Bay Water Reclamation Plant or SBWRP is the wastewater treatment
facility located at 2411 Dairy Mart Road in San Diego, which includes four major processes:
primary treatment, secondary treatment, tertiary treatment, and disinfection.
1.55 Strength means the measurement of Total Suspended Solids and Chemical Oxygen
Demand within the Flow and any other measurement required by law after the date of this
Agreement or necessary for the Functional Design Methodology.
1.56 Total Suspended Solids or TSS means the insoluble solid matter in wastewater
that is separable by laboratory filtration, as determined by the procedures specified in the most
current edition of “Standard Methods for the Examination of Water and Wastewater,” or any
successor publication which establishes the industry standard.
1.57 Tertiary Component is that portion of the wastewater treatment process that
currently filters the secondary treated wastewater effluent through fine sand and/or anthracite coal
to remove fine suspended solids and disinfects it to meet the requirements of the California
Administrative Code, Title 22, or its successor for filtered and disinfected wastewater used for
recycled and repurified water.
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1.58 Two-Party Approval is an approval mechanism under this Agreement that
requires the City’s Administrative Approval and a two-thirds (2/3) vote or greater of the Metro
JPA Directors present at a duly noticed Metro JPA public meeting as described more particularly
in Section 16.
1.59 Variable Costs shall refer to the portion of the Functional Design Methodology
costs that are allocated based on Metered Flow and Strength.
1.60 Water Repurification System shall mean any facilities, including treatment and
conveyance facilities, the purpose of which is the production or conveyance of Repurified Water.
Water Repurification System includes, but is not limited to: the Tertiary Component of the North
City Water Reclamation Plant to the extent being used to produce Repurified Water, the North
City Pure Water Facility; the Repurified Water conveyance system, which will transport
Repurified Water from the North City Pure Water Facility and/or other facilities to the Miramar
Reservoir or other alternative location(s) as determined by the City; and any other Repurified
Water treatment or conveyance facilities which are part of the Pure Water Program. These facilities
are constructed and maintained at the expense of the City water utility and are excluded Metro
System Costs under this Agreement.
2. OWNERSHIP AND OPERATION OF THE METRO SYSTEM
2.1 Rights of the Parties. The City is the owner of the Metro System, and any additions
to the Metro System or other facilities constructed pursuant to this Agreement. As more
particularly set forth in this Agreement, and subject to the terms and conditions of this Agreement,
the rights of the Parties generally include the following:
2.1.1 All decisions with respect to the planning, design, construction, operation
and maintenance of the Metro System shall rest with the City, in consultation with the Metro JPA.
2.1.2 The Participating Agencies shall have a contractual right to use the Metro
System and to participate in its operation.
2.1.3 The City may transfer ownership of all or part of the Metro System at any
time. In the event of a transfer, including a sale under Section 2.7, the City’s successor shall be
bound by the terms of this Agreement, and the Participating Agencies rights under this Agreement
shall not be affected by such a transfer.
2.1.4 Any Participating Agency may transfer or assign its rights and obligations
under this Agreement. Any transfer shall first be approved by the City. No transfer may occur if
the City reasonably determines, after consultation with the Participating Agencies involved, that
the proposed transfer will imbalance or adversely impact the City’s ability to operate the Metro
System.
2.2 Metro System Services.
2.2.1 The City shall provide wastewater conveyance, treatment and disposal
services to the Participating Agencies through the Metro System, under the terms set forth in this
Agreement.
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2.2.2 The City shall operate the Metro System in an efficient and economical
manner, maintaining it in good repair and working order, all in accordance with recognized sound
engineering and management practices.
2.2.3 The City shall convey, treat, and dispose of or reuse all wastewater received
under this Agreement in such a manner as to comply with all applicable laws, rules and regulations.
2.3 Flow Commitment.
2.3.1 Subject to the provisions of this Agreement and absent a separate agreement
of the Parties, all Flow within the capacity limits set forth in Exhibit B or any amendments or
changes thereto shall remain in the Metro System.
2.3.2 This Agreement shall not preclude any Party from diverting Flow as a result
of the construction of reclamation/reuse facilities or New Capacity outside of the Metro System.
2.3.3 Any Participating Agency may negotiate an agreement with the City to
reduce all or part of their Contract Capacity. If a Participating Agency reduces its Contract
Capacity to zero, that Participating Agency’s rights shall terminate under this Agreement and that
Participating Agency shall no longer be considered a member of the Metro JPA. However, the
agreement between the City and Participating Agency shall provide that the Participating Agency
pays its proportionate share of Capital Improvement Costs for the remainder of the useful life of
the facility(ies) constructed during the time the Participating Agency possessed Contract Capacity
in the Metro System. This shall include, but is not limited to, any remaining portions of outstanding
debt that was incurred for capital facilities during the time the Participating Agency had the right
to send Flow into the Metro System, and the cost to disconnect the Participating Agency’s system
from the Metro System. Any Contract Capacity that a Participating Agency chooses to relinquish
under this section shall be treated as Pooled Capacity after the effective date of an agreement
between the City and that Participating Agency. This section does not apply to Inter-Agency
transfers of Contract Capacity, which involve the relinquished Contract Capacity being assigned
to and assumed by another Participating Agency or the City. Inter-Agency transfers are governed
by Section 3.2
2.3.4 Flow Projections. Currently, the Projected Future Strength and Flow
Amounts are projected to the year 2050 in order to allow the Parties time to plan for future
development and growth. However, these projections may be amended from time to time through
the Exhibit B amendment processes in this Agreement to more fairly align with actual flow and
strength data. The parties shall begin discussion to recalculate the Projected Future Strength and
Flow Amounts set forth in Exhibit B by no later than January 1, 2040.
2.4 Funding Obligations. The City shall fund the acquisition, construction,
maintenance and/or operation of the Metro System from monies in (or sewer revenues which
populate) the Sewer Revenue Fund for the Metro System, and/or from construction funds derived
from the sale of duly authorized sewer revenue bonds for the Metro System. Nothing in this
Section or Agreement shall (i) obligate the City to make any payment for the acquisition,
construction, maintenance or operation of the Metro System from monies derived from taxes or
any other income or revenue of the City; (ii) be construed to obligate the City or any Participating
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Agency to pay from its annual income and revenues any sum which would create an indebtedness,
obligation or liability within the meaning of the provisions of Section 18 of Article XVI of the
Constitution of the State of California and, in the City’s case, San Diego Charter Section 99; or
(iii) prevent the City, in its discretion, from using tax revenues or any other available revenues or
funds of the City for any purpose for which the City is empowered to expend moneys under this
Agreement. For the avoidance of doubt, subsections (i) and (ii) shall not relieve the City from its
obligations to fund the Metro System as provided in this Section 2.4.
2.5 Limitations on Types and Condition of Wastewater.
2.5.1 Each Participating Agency shall minimize to the maximum extent
practicable, the infiltration and inflow of surface, ground or stormwaters into its respective
wastewater systems.
2.5.2 Each Participating Agency will ensure that all Industrial Users of its
wastewater system are regulated by and comply with the City’s industrial pretreatment program.
City shall not require the Participating Agencies to take any actions against such Industrial Users
beyond that which are (1) required under applicable laws, rules and regulations, (2) taken by the
City, or (3) that can be taken, but are not being taken by the City.
2.5.3 City and the Participating Agencies agree that the Interjurisdictional
Pretreatment Agreements executed by and between the City and each Participating Agency, as
applicable, shall terminate effective upon the date of this Agreement. However, the separate
transportation agreements that are currently in effect between or among the City and the
Participating Agencies shall remain in effect in accordance with their terms. Each Participating
Agency will not discharge wastewater originating outside its respective boundaries into the Metro
System without the approval of the City, which shall not be unreasonably withheld.
2.5.4 Each Participating Agency shall be responsible for the violation of any
applicable laws, rules or regulations associated with its respective discharge of wastewater into the
Metro System. Nothing in this Agreement shall affect or prohibit the ability of any Participating
Agency to hold third parties responsible for such violations. However, City shall be responsible
for enforcement actions related to the violation of any applicable laws, rules, or regulations
associated with industrial waste dischargers regulated by City, though each Participating Agency
shall collaborate with City when necessary, on any enforcement response for pretreatment
violations within a Participating Agency’s jurisdiction. However, the City shall not be responsible
for enforcement or monitoring related to a Participating Agency’s compliance with its own NPDES
Permit.
2.5.5 Food establishments and dischargers of fats, oils, and grease (FOG) are
regulated and monitored by individual Participating Agencies within their jurisdiction.
Participating Agencies are responsible for the provision of FOG programs, services, and
enforcement within their jurisdiction. The City will not provide FOG-related services or programs
outside of the City’s jurisdiction.
2.6 Enforcement Actions. In the event a regulatory agency, imposes any penalty or fine,
or takes other enforcement action, or a private citizen brings a citizen enforcement action to enforce
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regulatory requirements, (collectively, “Enforcement Actions”) relating to the conveyance,
treatment, or disposal of wastewater in or from the Metro System or operation of the Metro System,
the City shall determine as part of its investigation and response to the notice of violation whether
the City or a Participating Agency or Agencies caused or contributed to the violation for reasons
which may include, without limitation, exceeding their Contract Capacity, the contents of their
wastewater, or the failure to maintain or operate the Metro System or a Participating Agency’s
system. Any costs associated with an Enforcement Action including but not limited to fines,
penalties, corrective measures, and costs of defense (collectively, “Penalty(ies)”) shall be shared
by the Participating Agencies and the City proportionately based on Fixed Capacity as set forth in
the then current Exhibit B, unless the City determines, based on verifiable facts, that the violation
for which the Penalty is imposed was caused by, or was the result of, gross negligence or willful
misconduct of the City or a Participating Agency.
2.6.1 For any Enforcement Actions (1) related to sanitary sewer overflows of
10,000,000 gallons or more from the Metro System occurring after the effective date of this
Agreement, or (2) that the City reasonably anticipates will result in the Participating Agencies’
collective responsibility for the Penalties imposed to exceed 10% of the Metro Participating
Agencies combined annual operations and maintenance budget for the Metro System for the fiscal
year in which the Penalty is imposed (“Threshold Amount”), the City’s determination will be
subject to review by the Metro JPA as set forth in 2.6.1.1 through 2.6.1.8 below. The scope of the
Metro JPA’s review shall be limited to whether the violation for which the Penalty is imposed was
caused by, or was the result of, gross negligence or willful misconduct of the City or a Participating
Agency, and if so, how the Penalty should be fairly allocated. For all other Enforcement Actions,
the City’s determination related to the allocation of Penalty shall be final.
2.6.1.1 The City will provide a copy of any report submitted to a
regulatory agency in response to an Enforcement Action to the Metro JPA within 30 days of
submitting that report to the regulatory agency. In that same communication, the City will also
provide a summary of the City’s findings regarding causation and preliminary determination
regarding the allocation of any Penalties. If these determinations have not been made, the City will
provide an anticipated date that the information will be provided.
2.6.1.2 If the Metro JPA disputes the City’s determination as to the
allocation, as evidenced by a vote approved by two-thirds of the Metro JPA Directors present at a
duly noticed meeting, it shall notify the City in writing of the same within 90 days of receiving the
City’s preliminary allocation determination.
2.6.1.3 The City and representatives of the Metro JPA shall meet and
confer to discuss the matter and try to reach an agreement on the appropriate allocation. To
facilitate resolution, the meet and confer process shall be treated as a settlement discussion under
the California Evidence Code and shall be a confidential process. The meet and confer process
shall focus on whether the violation for which the Penalties are being imposed is the result, in
whole or in part, of the gross negligence or willful misconduct of the City or a Participating
Agency, and if so, how the Penalties shall be allocated.
2.6.1.4 If through the meet and confer process, the City determines that
the Participating Agencies’ collective responsibility for the Penalties imposed will be less than the
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Threshold Amount, then the City will inform the Metro JPA of this determination and allocate the
Penalty as such, and no further action by the Metro JPA is required.
2.6.1.5 If through the meet and confer process, the City and
representatives of the Metro JPA reach an agreement, and the Participating Agencies’ collective
responsibility for the Penalties imposed will be equal to or greater than the Threshold Amount,
then that agreement shall be subject to the Two-Party Approval process. The City and
representatives of the Metro JPA shall have an opportunity to present the proposed agreement to
the Metro JPA before a vote on the determination.
2.6.1.6 If the City and representatives of the Metro JPA are unable to
reach an agreement and Participating Agencies’ collective responsibility for the Penalties imposed
is equal to or exceeds the Threshold Amount, the City will make a final determination regarding
allocation of the Penalty and present the determination to the Metro Commission.
2.6.1.7 In the event that Two Party Approval is required but is not
achieved, each Participating Agency shall pay the portion of the Penalty allocated to them at the
time that it is invoiced, however, such payment may be made under protest. The Parties shall
engage in the dispute resolution procedures under this Agreement to resolve the issue, prior to any
Party having the right to initiate litigation.
2.6.1.8 Penalties in excess of the Threshold Amount shall be separated out
in the reconciliation billing and notated as a spill penalty with reference to the first day of the spill
associated with the penalty.
2.7 Right of First Refusal.
2.7.1 The City shall not sell or agree to sell the Metro System without first
offering it to the Participating Agencies. For the purposes of this section, “Participating Agencies”
shall mean a Participating Agency, a group of Participating Agencies, or a third party representing
one or more Participating Agencies. The term “sell” shall include any transfer or conveyance of
the Metro System or of any individual treatment, collection, or reclamation facility or outfall
within the Metro System.
2.7.2 The City and the Participating Agencies recognize that transfer of
ownership of the Metro System is currently restricted by Sections 6.04 and 6.20 of the Installment
Purchase Agreement between the City and the Public Facilities Financing Authority of the City,
which inter alia restricts the transfer of ownership to the Metropolitan Wastewater Sewage District
or other governmental agency whose primary purpose is to provide wastewater treatment. The City
shall not seek to impose on bond holders a waiver of Section 6.04 or 6.20. Absent such a restriction,
before the City sells or agrees to sell the Metro System, or any portion of it, the City shall offer to
sell the Metro System to the Participating Agencies (the “Offer”) on the terms and at a price equal
to that proposed for the sale of the Metro System to a third party. The City shall provide all
Participating Agencies with written notice of the Offer per Section 13 . The Participating Agencies
shall have ninety (90) days from the date of mailing of the Offer (the “Intent to Respond Period”)
in which to notify the City of their intent to respond to the Offer. If a Participating Agency or
Agencies notify the City of their intent to respond to the Offer, that Participating Agency or those
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Agencies shall have five months from the expiration of the Intent to Respond Period in which to
accept or reject the Offer. The Offer shall contain the name of the proposed purchaser, the proposed
sale price, the terms of payment, the required deposit, the time and place for the close of escrow,
and any other material terms and conditions on which the sale is to be consummated. If no
Participating Agency or Agencies notifies the City of its (or their) intent to respond to the Offer
within the Intent to Respond Period, the City may move forward with the sale of the Metro System
without further notice to the Participating Agency in accordance with Section 2.7.3 below.
2.7.3 If the Participating Agencies give timely notice of their intent to respond
and timely notice of their acceptance of the Offer, then the City shall be obligated to sell and the
Participating Agencies shall be obligated to purchase the Metro System or any individual treatment,
collection or reclamation facility or outfall within the Metro System, as applicable, at the price and
on the terms and conditions of the Offer. If the Participating Agencies do not give timely notice of
their intent to respond or their acceptance of the Offer, or do not submit an offer on the same terms
and conditions as the Offer, the City may, following the end of the Offer period, sell the Metro
System, or any portion of it, at a price and on terms and conditions no less favorable to the City
than those in the Offer. The City shall not sell the Metro System to any third party on terms or at
a price less favorable to the City from the terms and price contained in the Offer absent compliance
with the terms of this Section. The City’s sale of the Metro System under Section 2.7, is a transfer
of ownership subject to Section 2.1.3.
2.7.4 Nothing herein shall prevent the City from entering into a financing
agreement which may impose limits on the City’s power to sell the Metro System to the
Participating Agencies pursuant to Section 2.7.1 if the City reasonably believes that such a
financing agreement is in the City’s best interest. Neither the entry into such a financing agreement
by the City nor the performance thereof by the City shall constitute a breach or default by the City
hereunder.
2.8 Uniform Enforcement of Pretreatment Program by City. The Parties have
determined that it is in their best interests for a single agency to be responsible for management of
the pretreatment program for the Metro System in order to: (a) Ensure protection of the entire
Metro System, including the successful operation of the Pure Water Program; (b) Provide
consistent and uniform regulation of Industrial Users, including those subject to pretreatment
requirements; (c) Provide for transparent and fair cost recovery from all dischargers; and
(d) Promote efficiency and accountability in the administration of the Metro System. For these
reasons, the Parties are delegating pretreatment responsibilities to the City, except regulation of
Food Establishments and FOG dischargers, as more fully set forth in this Agreement and in
Administrative Agreement #1 Between City of San Diego and Participating Agencies for the
Unified Management of Industrial Waste Discharge Pretreatment and Enhanced Source Control
Programs (“Administrative Agreement #1”). Notwithstanding the above, the City may enter into
supplementary agreements with an individual Participating Agency, or a group of Participating
Agencies, relating to industrial waste discharge pretreatment and enhanced source control
programs unique to such Participating Agency(ies), so long as the supplementary agreement
incorporates a separate cost proportional to the participation of such Participating Agency or group
of Participating Agencies that is the sole responsibility of such Participating Agency(ies).
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2.8.1 Delegation of Authority. Each Participating Agency shall and hereby does
delegate to City full authority and responsibility to operate, manage, and enforce an effective
pretreatment program throughout the Metro System to ensure that all Industrial Users are subject
to uniform rules and regulations, with direct billing to Industrial Users by the City to begin on the
first July 1 following execution of this Agreement.
2.8.2 Operations and Maintenance. Procedures relating to the operation,
management, enforcement, and cost recovery for the pretreatment program are set forth in
Administrative Agreement #1.
2.8.3 Amending Pretreatment Program Procedures. Administrative Agreement
#1 may be amended from time to time as set forth in Section 15. In the event of any conflict
between this Agreement and Administrative Agreement #1, the terms of this Agreement shall
control.
2.8.4 Adoption of Local Ordinances. By no later than June 30 following the
Effective Date of this Agreement, every Participating Agency shall adopt a local ordinance
conforming with the sample ordinance contained in Administrative Agreement #1 and the City’s
pretreatment ordinance, each as amended from time to time, to ensure consistency throughout the
Metro System.
2.8.5 Identification of New Industrial Users. Participating Agencies shall notify
the City of any identified potential new Industrial Users within their respective boundaries while
the City will bear responsibility for inventory assessments on a regular basis as set forth in
Administrative Agreement #1.
2.8.6 Permitting and Permit Compliance. Nothing in this Agreement shall be
construed to relieve any discharger to the Metro System of the responsibility to obtain and comply
with any required permits for, and to comply with rules and regulations applicable to, dischargers
to the Metro System. If the City determines that an Industrial Wastewater Control Program Permit
is required, it shall issue the permit subject to the City’s permit requirements. The City’s approval
or denial of any application for, or revocation of, an Industrial User Permit shall be in accordance
with Chapter 6, Article 4 of the San Diego Municipal Code as well as any other applicable federal,
state or local regulations, any published City guidance related to the Industrial Wastewater Control
Program, and the City’s Enforcement Response Plan, all as may be amended, renumbered, or
renamed from time to time. The City and any Participating Agency may elect to coordinate and
combine issuing their wastewater discharge permits to Industrial Users when deemed appropriate
by both parties. Any agreement between the City and the Participating Agencies related to
permitting under the Industrial Wastewater Control Program, shall not transfer responsibility to
City for any other type of permitting outside of the City’s jurisdiction, or subject any local agency
as that term is defined in California Government Code section 53090, to local building and zoning
ordinances that the local agency is not otherwise legally subject to.
2.8.7 Inventory of Industrial Users. City shall create and maintain an inventory of
all Industrial User within the Metro System as soon as reasonably practicable following execution
of this Agreement. The Participating Agencies shall review the inventory and shall notify the City
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of an Industrial User(s) in its jurisdiction that is not identified on the inventory as set forth in
Administrative Agreement #1.
2.8.8 Evaluation, Monitoring, Enforcement and Program Review. Upon the
effective date of this Agreement, it shall be the City’s right and obligation to carry out pretreatment
evaluation, permitting, monitoring and/or enforcement throughout the Metro System consistent
with the procedures set forth in Administrative Agreement #1. The City’s pretreatment program
review shall occur as necessary, but no less than once every five (5) years. Nothing herein shall be
construed as prohibiting any Participating Agency from enforcement of its own pretreatment
ordinance within its jurisdiction.
2.8.9 City’s Direct Billing of Industrial Users. The City shall directly bill
Industrial User throughout the Metro System to recover costs associated with the pretreatment
program as set forth in Administrative Agreement #1. The City Council shall set and approve such
costs in a publicly noticed meeting pursuant to the procedures set forth in Administrative
Agreement #1.
2.9 Wastewater Generated at Military Bases. The City may contract directly with
federal military bases that are connected to the Metro System for wastewater services and capacity
subject to the terms of this Section 2.9. If a United States military base is located within a
Participating Agency’s jurisdiction, the Participating Agency may request that the City bill that
military base directly as a separate and distinct customer. In the event the City agrees to accept the
military’s wastewater and bill the military base as a separate and distinct customer, then (1) the
Participating Agency shall have no billing obligations with respect to the military base; (2) each
Participating Agency whose sewage line conveys the military base’s wastewater reserves the right
to negotiate and charge the federal government a conveyance or transportation fee for use of that
Participating Agency’s sewer line; (3) the City shall require that the military base comply with the
applicable City pretreatment rules; and (4) the City agrees that the wastewater generated by the
military base shall not be considered wastewater of the Participating Agency with respect to
capacity once the City enters into an agreement with the military base. Any transfers of capacity
that are appropriate or necessary to accommodate flow from military bases, if needed, would be
governed by Section 3.2 herein, “Inter-Agency Transfers of Contract Capacity.”
3. CAPACITY RIGHTS
3.1 Contract Capacity. Each Participating Agency shall have the contractual right to
discharge wastewater to the Metro System up to the limits set forth in Exhibit B (“Contract
Capacity”). Each Party’s Contract Capacity as stated in Exhibit B, is used for the purpose of
allocating the Metro System’s Pure Water Program Capital Improvement Costs, Repurified Water
Revenue, and the Capital Expense Rate under this Agreement.
3.2 Inter-Agency Transfers of Contract Capacity. The Participating Agencies and the
City may buy, transfer, sell or exchange all or part of their Contract Capacity among themselves
on such terms as they may agree upon, subject to the following:
3.2.1 Any Party requesting to buy, transfer, sell, or exchange all or part of their
Contract Capacity (“Inter-Agency Transfer”) shall provide a written proposal to the City
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including the proposed terms of such Inter-Agency Transfer. The Party requesting the Inter-
Agency Transfer shall also provide notice to all other Participating Agencies under Section 13
concurrently with submitting the proposal to the City.
3.2.2 All Participating Agencies will have 45 days to provide any technical input
to the City regarding the proposed Inter-Agency Transfer. Any Participating Agency providing
technical input shall provide a copy of such input to all other Participating Agencies under Section
13 concurrently with submitting the input to the City.
3.2.3 Upon receipt of a request for an Inter-Agency Transfer, the City will review
the request, consult with the affected Participating Agencies, and consider any technical input
provided by other Participating Agencies.
3.2.4 All proposed purchases, transfers, sales or exchanges of Contract Capacity
require the City’s Administrative Approval prior to becoming effective. No Contract Capacity may
be transferred if the City determines that said transfer will imbalance, or will otherwise adversely
impact the City’s ability to operate the Metro System. Provided, however, that the Participating
Agency seeking the transfer may offer to cure such imbalance at its own expense. If the
Participating Agency makes such an offer, the City may not unreasonably withhold Administrative
Approval.
3.2.5 If the City approves the offer as proposed, the City shall adjust the Contract
Capacity set forth in Exhibit B per Section 3.6 to reflect the approved changes. If the City
determines, after taking the steps in Section 3.2.3 that an Inter-Agency Transfer may be approved
if the request is modified, the City will provide a written notice to all Participating Agencies of the
modified Inter-Agency Transfer under Section 13 no less than 30 days prior to the Inter-Agency
Transfer becoming effective. Such modified Inter-Agency Transfer will become effective 30 days
following the written notice being provided, and the City will prove an updated Exhibit B per
Section 3.6 reflecting the approved changes.
3.2.6 If a Participating Agency reduces its Contract Capacity to zero through an
Inter-Agency Transfer, that Participating Agency’s rights under this Agreement shall terminate
and that Participating Agency shall no longer be a member of the Metro JPA. The Participating
Agency shall remain responsible for all outstanding financial obligations under this Agreement,
unless the Inter-Agency Transfer Agreement assigns those obligations to the Participating Agency
accepting the transfer and that agency assumes those obligations. Outstanding financial obligations
include, but are not limited to, a Participating Agency’s proportionate share of Capital
Improvement Costs for the remainder of the useful life of the facility(ies) constructed during the
time the Participating Agency possessed Contract Capacity in the Metro System, including any
remaining portions of outstanding debt incurred for capital facilities during the time the
Participating Agency had the right to send Flow into the Metro System, and the cost to disconnect
the Participating Agency’s system from the Metro System.
3.3 New Contract Capacity. The Parties recognize that the Metro System may be
modified to create capacity in the Metro System beyond that set forth in Exhibit B as a result of
the construction of additional facilities, acquisition of facilities, increased flows, or as required by
regulatory or similar such action. If capacity in excess of the Contract Capacity (“New Contract
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Capacity”) is required or requested by a Party, the Parties shall negotiate in good faith to provide
the needed or requested capacity. If the Parties agree to provide New Contract Capacity, they shall
memorialize the agreement for New Contract Capacity in an Administrative Agreement subject to
the Joint Administrative Approval Process set forth in Section 15. If the parties execute an
Administrative Agreement for New Contract Capacity, Exhibit B shall also be adjusted pursuant
to Section 3.6 to reflect the New Contract Capacity.
3.4 Reductions in Metro System Capacity. The Parties further recognize that Metro
System Capacity may be reduced to comply with, or in response to, applicable permit conditions,
or related regulatory action, or sound engineering principles. In the event that the capacity of the
Metro System is re-rated to levels below the numbers reflected in the Totals Line set forth in
Exhibit B, then the Contract Capacity shall be reallocated proportionately among the Parties based
on the percentages of fixed ownership set forth in Exhibit B at that point in time, subject to the
City’s Administrative Approval and amendment of Exhibit B.
3.5 Restrictions on Veto of Transfers and Acquisitions of Capacity. Each Party
understands and agrees that no Participating Agency has a right to veto or prevent the transfer of
capacity between other Participating Agencies or the City, nor the creation or acquisition of new
capacity for another Participating Agency or Agencies. By signing this Agreement, each
Participating Agency is expressly preapproving such actions. The sole right of a Participating
Agency to object to any of the foregoing shall be through expression of its opinion to the Metro
JPA and, where applicable, through exercise of its rights under the dispute resolution provisions
of this Agreement.
3.6 Amendments to Exhibits B. If the City determines that an amendment to Exhibit B
is required for any reason other than a request from a Participating Agency under Sections 2.3.3
and Sections 3.2, and that reason only requires the City’s Administrative Approval, the City shall
prepare and circulate to all Participating Agencies the proposed amendment to Exhibit B within
60 days of determining such an amendment is necessary. The Participating Agencies will have
sixty (60) days to provide comments to the City, and all comments submitted to the City by a
Participating Agency shall also concurrently be submitted to all other Participating Agencies. The
City will review all comments received, prepare final amendments to Exhibit B to reflect
adjustments in Contract Capacity, and circulate the final amended Exhibit B by no later than
sixty (60) days after the City’s Administrative Approval. If the amendment to Exhibit B requires
an approval process other than the City’s Administrative Approval, the Parties will follow the
required approval process, and once that is completed, the City will prepare and provide the final
version of Exhibit B within 60 days of the completion of the approval process. The City shall note
each amendment and amendment date in the Exhibit List and shall keep an updated version of
Exhibit B on file with the City Public Utilities Department at all times. An amendment to Exhibit B
shall not be retroactive, except as provided in Section 4.4.3.3.
3.7 The South Bay Ocean Outfall. Nothing in this Agreement shall limit the City’s right
to transfer capacity rights in assets that are not a part of the Metro System, including without
limitation that portion of the South Bay Ocean Outfall which is not part of the Metro System.
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4. FINANCE, BUDGETING, AND ACCOUNTING: PAYMENT AND
MONITORING PROVISIONS
4.1 Payment for Metro System Facilities. Through the system of charges set forth in
Section 5 of this Agreement, each Participating Agency shall pay its share of the costs of planning,
design and construction of all of the Metro System facilities which are identified in Exhibit A .
4.2 Payment for Additional Metro System Facilities. Through the system of charges set
forth in Section 5 of this Agreement, each Participating Agency shall pay its share of the costs of
acquisition, planning, design and construction of such facilities, in addition to those set forth on
Exhibit A, as are necessary to (a) convey, treat, dispose, and reuse wastewater in the Metro System;
(b) provide the Contract Capacity set forth in Exhibit B; and (c) maintain hydraulic capacity as
otherwise required by sound engineering principles. Each Participating Agency shall pay its share
of the costs necessary to ensure the Metro System maintains compliance with applicable laws,
rules and regulations, including the Ocean Pollution Reduction Act of 1994 and its successor(s),
as well as present and future waivers of applicable treatment standards at any Metro System
treatment facility. Exhibit A may be amended to reflect replaced or rehabilitated facilities, or
changes in facilities, subject to the City’s Administrative Approval; however, if the City proposes
to add a new Metro facility to Exhibit A, or convert a City facility to a Metro facility that will be
added to Exhibit A, then each such amendment shall be (1) subject to the City’s Administrative
Approval, in its sole discretion, when the addition or conversion is for the purpose of complying
with applicable laws, rules, or regulations; or (2) supported by an independent third-party study
setting forth the benefits to the Metro System of each new facility, including a cost allocation for
capital and projected annual maintenance costs if the addition or conversion is for any other
purpose. For any new Metro facility or conversion of a City facility to a Metro facility proposed
to be added or converted under (2) above, any such proposal must be memorialized in an
Administrative Agreement subject to the Joint Administrative Approval Process set forth in
Section 15. Once approved, the City shall amend Exhibit A accordingly and shall give notice of
any amendments to all Participating Agencies. The City shall keep an updated version of Exhibit A
on file with the City Public Utilities Department. Exhibit A may be amended to reflect other
changes to the Metro System only as expressly provided in this Agreement.
4.3 Payment for Operation and Maintenance. Through the system of charges set forth
in Section 5 of this Agreement, each Participating Agency shall pay its share of the Operation and
Maintenance Costs of all Metro System facilities. The Participating Agencies shall not pay for the
Operation and Maintenance Costs of the Water Repurification System, which are City Water
Utility PW Costs.
4.4 Charges Based on Flow, Strength and Fixed Capacity: Exception.
4.4.1 Except as otherwise described in this Section 4.4, a Participating Agency’s
share of the charges in this Section 4 shall be based on its proportionate Flow, Strength, and Fixed
Capacities as set forth in Exhibit B, as described more fully in Section 5.
4.4.2 Notwithstanding Section 4.4.1, or any other provision of this Agreement, a
Participating Agency’s share of PWP Phase 1 Capital Improvement Costs, PWP Phase 1
Repurified Water Revenue, and Pure Water Program Capital Expense Rate attributable to the
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Metro System as described in Sections 6.6 and 6.7 shall be assessed or credited based on the Parties’
proportionate share of the Pure Water Capital Melded Percentages set forth in Column 7 of
Exhibit B. The City shall annually allocate the estimated and actual PWP Phase 1 Capital
Improvement Costs and revenues which are attributable to the Metro System in proportion to each
Party’s Pure Water Capital Melded Percentages as set forth in Column 7 of Exhibit B when
estimating quarterly payments and conducting year-end adjustments.
4.4.3 Each Party recognizes that operation within respective Projected Future
Strength and Flow Amounts is essential to the accurate allocation of costs and revenues under the
Pure Water Program. In recognition of same, the Parties agree as follows:
4.4.3.1 Contract Capacity Transfers – Increases in Fixed Capacity
Components. Beginning in the next fiscal year after the effective date of this Agreement, if a Party
exceeds their Capacity Rights or any individual component of the Capacity Rights set forth in
Exhibit B, by any one of the following triggers based upon data available at the completion of a
fiscal year: (1) Three percent (3%) in a fiscal year for any two consecutive fiscal years, (2) One
MGD in a fiscal year for any two consecutive fiscal years, or (3) The equivalent Strength of one
MGD in a fiscal year for any two consecutive fiscal years; then, the City shall prepare an
amendment to Exhibit B that reflects a Contract Capacity Transfer for that Party based on the
available information about such Party’s exceedance(s) and the methodology set forth in Exhibit E.
After Phase 2 is completed, if, due to contract capacity transfers or reductions in capacity, the
Pooled Capacity drops to less than two percent (2%) of the total Contract Capacity, a capacity
study shall be initiated to evaluate existing facilities for new capacity. The City shall thereafter
amend Exhibit B under the process set forth in Section 3.6 to reflect the new Contract Capacity for
all Parties. Any changes to the methodology in Exhibit E shall be made pursuant to an
Administrative Agreement subject to the Joint Administrative Approval Process described in
Section 15.
4.4.3.2 Contract Capacity Transfers – Decreases in Fixed Capacity
Components. Beginning in the next fiscal year after the effective date of this Agreement, if a Party
can show through an independent report that its Monthly Average Daily Flow, annual average
pounds per day of COD, annual average pounds per day of TSS, Incremental Peak Flow, or RSDP
is projected to decrease ten percent (10%) or more below their Projected Future Strength and Flow
Amounts using data from a minimum of three (3) consecutive prior fiscal years as support, then
City shall prepare a proposed amendment to Exhibit B that reflects the new Projected Future
Strength and Flow Amounts for all Parties based on such Party’s decrease and other relevant
information using sound engineering principles and the guidelines set forth in Exhibit E. The
City’s proposed amendment shall be subject to the Two-Party Approval Process. If approved, the
City shall thereafter amend Exhibit B using the process set forth in Section 3.6.
4.4.3.3 If Exhibit B is amended to update one or more Parties’ Projected
Future Strength and Flow Amounts pursuant to Section 4.4.3.1 or 4.4.3.2, the change in Projected
Future Strength and Flow Amounts shall be effective retroactively to the beginning of that fiscal
year, and the City shall use the updated amounts in estimating quarterly payments and conducting
year-end adjustments for Pure Water Program costs and revenues. Therefore, any Party that
underpaid based on prior Exhibit B Fixed Capacity amounts (which were based on prior Projected
Future Strength and Flow Amounts) shall pay the retroactive amount due in quarterly installments
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in its quarterly payments the following fiscal year; any Party that overpaid based on previous
Exhibit B Fixed Capacity amounts shall receive a credit in quarterly installments in its quarterly
payments the following fiscal year. Notwithstanding the preceding sentence, if the retroactive
amount due exceeds 20% of a Party’s average annual Metro System payments for the previous
four (4) fiscal years, such Party may elect to pay the retroactive amount due in its quarterly
payments over the subsequent four (4) fiscal years, with interest, based on the most recent quarterly
earnings rate of the City’s Treasurer’s Pooled Rate of Return; any Party that overpaid in an amount
that exceeds 20% of their annual average Metro System payments for the previous four (4) fiscal
years based shall receive a credit in its quarterly payments spread over the following four (4) fiscal
years.
4.5 Monitoring Flow and Strength.
4.5.1 The City shall monitor Flow and Strength. The City shall own and operate
as part of the Metro System monitoring devices which will measure the amount of Flow discharged
into the Metro System, unless otherwise agreed by the City and a Participating Agency. These
devices shall be installed at locations appropriate to accurately monitor Flow and Strength. The
City may also monitor Flow and Strength at other locations as it deems appropriate. For all
currently unmetered areas, unit counts or agreed upon flow estimates where unit counts are not
appropriate shall be used. For adding or subtracting unit count areas, the average current Metro
Flow per unit shall be used consistently for all Parties. These unmetered unit counts will be updated
at least once every five (5) years. If the flow in an unmetered area is over 0.5 MGD at a specific
connection point, then a meter shall be added for that area, if possible. Exhibit F provides the Flow
formulas that shall be used to determine the payment obligation for each Party, or a grouping or
subgrouping of Parties, as applicable. Exhibit F shall be distributed to all Parties with the budget
estimates that are sent annually pursuant to Section 5.7.1. The City currently provides all
Participating Agencies with access to their data from the Flow metering devices, including
providing access to their raw data, and will continue to do so according to the Parties’ established
practices on the Effective Date of this Agreement. Changes to Exhibit F may be made upon the
City’s Administrative Approval.
4.5.2 In measuring Strength, the frequency and nature of the monitoring shall not
be more stringent for the Participating Agencies than it is for the City. The frequency, nature, and
locations of Strength measurements, as well as the procedures used to determine Strength, shall be
reviewed at least once every five (5) years and if changes are appropriate or required, the City may
change the Strength measurements subject to the Two-Party Approval process. When conducting
sampling within a Participating Agency’s service area, the City shall follow appropriate safety and
security measures. The City and Participating Agencies will coordinate with the Participating
Agency’s operations staff to ensure facilities are not negatively impacted by inspections.
4.5.3 The City shall report Strength data to the Participating Agencies at least
quarterly.
4.5.4 The City shall notify the Metro JPA’s Executive Director and any directly
affected Participating Agency within 24 hours of any unpermitted or unlawful discharge or release
of effluent from the Metro System which may be reportable to the Regional Board, or any other
regulatory agency, and which may result in civil or criminal penalties or administrative
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enforcement proceedings pursuant to Water Code sections 13261, et seq., section 13300, et seq.,
Government Code section 54740 et seq., or other provisions of law. Upon request from the Metro
JPA or a Participating Agency, City shall provide the Metro JPA or affected Participating Agencies
with copies of all non-privileged related correspondence to and from the Regional Board. The City
shall endeavor to confer with Metro JPA staff during the report preparation process and before any
report is submitted to a regulatory or enforcement agency.
5. FINANCE, BUDGETING, AND ACCOUNTING: SYSTEM OF CHARGES
5.1 Charges Authorized. The City agrees to implement, and the Parties agree to abide
by a system of charges called Functional Allocated Billing (FAB). This system allows the City to
equitably recover from all Participating Agencies their proportional share of the net Metro System
Costs described in this section:
5.2 Functional Allocated Billing (FAB). The City shall annually determine the FAB
rate based on the projected Metro System Costs (as defined below) for the forthcoming fiscal year,
less all Metro System Revenues (as defined below).
5.2.1 Calculation of FAB Rates.
5.2.1.1 The City shall determine the unit FAB rates by allocating net costs
(Metro System Costs less Metro System Revenues) between the fixed and measured variable
parameters of Capacity Rights, such as Monthly Average Daily Flow, Incremental Peak Flow,
COD, TSS, and RSDP as set forth in Exhibit B. These allocations are based on the approved
Functional-Design Methodology analyses for sewer system components and estimated Operation
and Maintenance (O&M) Costs allocated to each parameter.
5.2.1.2 Beginning one (1) year after substantial completion of the final
project of Phase 1 of the Pure Water Program for which sewer revenue funds were used, the City
shall have the FAB, which includes the Functional Design Methodology, professionally reviewed
at least once every five (5) years.
5.2.1.3 After conducting a professionally developed independent third-
party report, the City may propose to change the FAB, including the Functional Design
Methodology, to include any other parameter, or modify any term governed by this Section 5.2.1,
by way of an Administrative Agreement subject to the Joint Administrative Approval Process set
forth in Section 15. However, the City may revise the FAB, including the Functional Design
Methodology at any time to include any other measurement required by law after the effective date
of this Agreement subject to the City’s Administrative Approval, in its sole discretion. City will
notify all Participating Agencies of any such review or revision no later than sixty (60) days after
City’s Administrative Approval. Once approved, the FAB resulting from any review or revision
under this Section will become the current approved version until it is revised by a future
professional independent third-party study or a change in law.
5.2.1.4 Each of the parameters will have a fixed and variable O&M charge
between 0% and 100%. Fixed Capacity Charges will be based on the Contract Capacity in
Exhibit B. Variable charges will be based on measured parameters such as Metered Flow, Strength
and RSDP.
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5.2.1.5 Costs for capital improvements, capital replacement, and
rehabilitation costs including financing shall be based on the approved Functional-Design
Methodology and the Contract Capacity in Exhibit B.
5.2.1.6 The net cost allocated to each of the parameters shall be divided
by the total Metro System quantity for that parameter to determine the unit rates for each parameter.
These unit rates shall apply uniformly to all Parties.
5.3 Metro System Costs. The following shall at a minimum be considered Metro
System Costs for purposes of calculating the annual FAB rate:
5.3.1 Except as provided in Section 5.4 (Excluded Costs), the annual Operation
and Maintenance Costs and annual costs associated with administration, replacement, annual debt
service costs and other periodic financing costs and charges, capital improvement, insurance
premiums, claims payments and claims administration costs of the Metro System, including
projected overhead, shall be calculated using generally accepted accounting practices to reflect the
costs of the Metro System.
5.3.2 Fines or penalties imposed on the City as a result of the operation of the
Metro System, unless the fine/penalty is allocated to the City or a Participating Agency as provided
in Section 2.5.5.
5.4 Excluded Costs. The following items shall not be considered Metro System Costs
for purposes of calculating the annual FAB rate:
5.4.1 Costs related to the City of San Diego’s municipal sewer, water (including
City Water Utility PWP Costs), and/or stormwater systems as determined by City’s reasonable
calculations consistent with sound engineering and best management practices.;
5.4.2 Right-of-way charges for the use of public streets of the City or any
Participating Agency. The City and the Participating Agencies agree not to impose a right-of- way
charge for the use of its public rights-of-way for Metro System purposes;
5.4.3 Capital Improvement Costs or Operations and Maintenance Costs of any
non-Metro System facility not included in Exhibit A, including, but not limited to, any costs
associated with the ECAWP Project;
5.4.4 Those costs otherwise identified as excluded costs in Section 6.3.
5.5 Metro System Revenues and Allocations. The following revenues shall be at a
minimum considered Metro System Revenues for purposes of determining the annual FAB rate:
5.5.1 Any grant or loan receipts or any other receipts that are attributable to the
Metro System or Metro System components of the Pure Water Program, including, but not limited
to, all compensation or receipts from the sale, lease, or other conveyance or transfer of any asset
of the Metro System or Metro System components of the Pure Water Program. Any such receipts
attributable to the Metro System components of the Pure Water Program shall be allocated among
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the City and the Participating Agencies in the proportions set forth in Exhibit B Fixed Capacity
amounts.
5.5.2 All compensation or receipts from the sale or other conveyance or transfer
of any Metro System byproducts, including, but not limited to, gas, electrical energy, sludge
products, and Recycled Water produced at the NCWRP and SBWRP and the future Central Area
Plant.
5.5.3 Payments by the City’s Water Utility for the Capital Expense Rate, as
calculated under provisions in Section 6.7. These proceeds shall be allocated among the City and
Participating Agencies in the proportions set forth in Exhibit B Fixed Capacity amounts.
5.5.4 Those portions of Repurified Water Revenue attributable to the Metro
System, as calculated under provisions in Section 6.6.3. These revenues shall be allocated among
the City and Participating Agencies in the proportions set forth in Exhibit B Fixed Capacity
amounts.
5.5.5 Any other non-operating revenues, including, but not limited to interest
income included in the income credit portion of the annual audit.
5.6 Excluded Revenue. The following revenues shall be excluded from Metro System
Revenues for purposes of determining the annual FAB rate:
5.6.1 Proceeds from the issuance of debt for Metro System projects.
5.7 Estimate and Billing Schedule and Year End Adjustment.
5.7.1 The City shall estimate the FAB rates on an annual basis prior to January 15
and provide budget estimates for the upcoming fiscal year to all Parties. The City shall quantify
the FAB rates by estimating the quantity of Flow, Strength, and Fixed Capacity Charges for each
Party, based on that Party’s Metered Flow for the past year and the cumulative data of sampling
for Strength constituents such as COD and TSS over the preceding five years and Fixed Capacities
set forth in Exhibit B. If the cumulative five-year Strength data is no longer indicative of discharge
from a Party, and a Contract Capacity Transfer has been approved pursuant to Sections 4.4.3.1,
4.4.3.2, or 3.2, then the City may eliminate the previous higher readings subject to the City’s
Administrative Approval.
5.7.2 Prior to March 1 of each year the City will provide a mid-year review of the
current year’s Metro System Capital Improvement Costs and Operations and Maintenance Costs
and offsetting non-operating revenues such as grant or loan proceeds, including fiscal year-end
projections and provide such reviews to the Participating Agencies.
5.7.3 The City shall determine the volume of MBC Return on an annual basis and
for billing purposes only. The costs of treating MBC Return shall be allocated to the Parties in
proportion to their Metered Flow and Strength. If a Party’s Monthly Average Daily Flow plus
MBC Return exceeds their Contract Capacity set forth in Exhibit B, it shall not be treated as an
exceedance pursuant to Section 4.4.3.1.
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5.7.4 The City shall bill the Participating Agencies quarterly, invoicing on
August 1, November 1, February 1 and May 1. Each bill shall be paid within thirty (30) days of
mailing. Quarterly payments will consist of the total estimated cost for each Participating Agency,
based on their estimated Flow, Strength, and Fixed Capacity Charges, divided by four.
5.7.5 At the end of each fiscal year, the City shall determine the actual Metro
System Costs and the actual Metered Flow as well as the cumulative Strength data for the City and
each of the Participating Agencies. The City shall make any necessary adjustments to the unit rates
for Flow and Strength such as COD, TSS and Fixed Capacity Charges based on actual costs for
the year as determined through the annual audit process in Section 5.8.2 of this Agreement. The
City shall then recalculate the FAB rate for the year using actual audited costs for the year, actual
Metered Flow, Residuals, MBC Return, cumulative Strength factors, and Fixed Capacity Charges
for the City and for each Participating Agency. The City shall credit any future charges or bill for
any additional amounts due against the quarter after the prior year costs have been audited.
5.8 Financial Statements.
5.8.1 The City shall keep records and accounts of all costs and expenses relating
to conveyance, treatment, disposal, and reuse of wastewater, and production of Repurified Water,
and the acquisition, planning, design, construction, administration, monitoring, operation and
maintenance of the Metro System and Water Repurification System, and any grants, loans, or other
revenues received therefor. The City shall keep such records and accounts for at least four (4) years
after the completed audit, or for any longer period required by law or outside funding sources.
5.8.2 Annual Audit. Said records and accounts shall be subject to reasonable
inspection by any authorized representative of any Participating Agency at its expense. Further,
said accounts and records shall be audited annually by an independent certified public accounting
firm appointed by the City. A copy of said report shall be available to any Participating Agency.
As part of said audit, the actual amount of City Water Utility’s PW Costs, Pure Water Program
costs attributable to the Metro System, Repurified Water Revenue, and the Capital Expense Rate
shall be determined and audited by the City’s external auditors and Participating Agency
representatives, and a cumulative and annual summary of such amounts shall be included as a
footnote or attached to the audit of the Metro System. Cost summaries shall include separate lines
for Capital Improvement Costs and Operation and Maintenance Costs.
5.8.3 The City shall make a good faith effort to complete the annual audit, and
any related adjustments under this Agreement as described in Section 5.8.2, by the end of the
following fiscal year.
5.9 Debt Financing. The City retains the sole right to determine the timing and amount
of debt financing required to provide Metro System Facilities. The annual debt service plus in-
progress Capital Improvement Costs to maintain capacity in and of the Metro System shall be
allocated to the Participating Agencies consistent with the Exhibit B Contract Capacity allocations
effective on the date the debt is issued. If a Participating Agency wishes to prepay Capital
Improvement Costs, and the City is able to accommodate such a request, then a Participating
Agency may prepay their proportional share of Capital Improvement Projects. If a Participating
Agency wishes to withdraw or reduce their Flows and/or Strengths from the Metro System per
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Section 2.3.3 of this Agreement, such agency will remain responsible for its pro-rata share of all
outstanding debt incurred at the time the debt was issued until it is satisfied, irrespective of
withdrawal, reduction in Flows and/or Strengths, or Agreement expiration. If the City refunds debt,
it shall allocate such refunds consistent with the Exhibit B Contract Capacity allocations effective
on the date the debt was issued.
5.10 Allocation of Operating Reserves and Debt Service Coverage. The Parties shall
continue to comply with the protocol set forth in Exhibit C, Administrative Protocol on
Allocation of Operating Reserves and Debt Service Coverage to Participating Agencies,
which exhibit may be amended from time to time consistent with Section 5.11.
5.11 Amending the System of Charges. Except as otherwise provided in Section 5.2.1.6,
the Parties may amend any provision in this Section 5 regarding the Finance, Budgeting, and
Accounting System of Charges in an Administrative Agreement subject to the Joint Administrative
Approval Process set forth in Section 15.
6. FINANCE, BUDGETING, AND ACCOUNTING: PURE WATER PROGRAM
COST ALLOCATION AND REVENUES – PHASE 1
6.1 North City Water Reclamation Plant Modification. As part of Phase 1 of the Pure
Water Program, the City intends to modify the North City Water Reclamation Plant (a Metro
System facility) and expand its capacity to 52 MGD. In addition, the City intends to construct the
North City Pure Water Facility on a nearby site to produce Repurified Water. This Section sets
forth the costs and revenues associated with the Pure Water Program attributable to the Metro
System. Exhibit A includes current constructed Metro System facilities and existing and proposed
future Phase 1 facilities.
6.2 New, Expanded or Modified Metro System Facilities. Each new, expanded, or
modified Metro System facility, which is part of the Pure Water Program, and is used in relation
to the production of Repurified Water (in addition to the modification and expansion of the North
City Water Reclamation Plant) shall be governed by this Section.
6.3 Costs Excluded from Metro System Costs – Phase 1. All of the following Pure
Water Program costs, including Capital Improvement Costs, Operation and Maintenance Costs,
and other related costs (including administration, insurance, claims, and overhead) shall be
excluded from Metro System Costs for purposes of calculating the annual FAB rate.
6.3.1 General Exclusions:
6.3.1.1 Costs of the Water Repurification System and any Metro System
facilities to the extent constructed, modified, expanded, or used for the purpose of treating
wastewater beyond secondary treatment (ocean discharge standard under current law). This shall
include costs for preliminary treatment, primary treatment, and secondary treatment to the extent
such costs are higher than they would otherwise be due to the production of Repurified Water.
6.3.1.2 Costs for fail-safe disposal, if necessary, for design capacity for
Repurified Water, including, but not limited to, any costs associated with the reservation of
capacity at the Point Loma Wastewater Treatment Plant.
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6.3.1.3 Costs for the demolition or replacement of existing Metro System
facilities with similar facilities for the purpose of making space available for Water Repurification
System facilities. Such costs may consider the current asset value or market value of the existing
Metro System facility.
6.3.2 Cost Exclusions Specific to North City Water Reclamation Plant
Improvements:
6.3.2.1 Costs for increased aeration tank volume to the extent the new
volume exceeds the amount necessary to provide 52 MGD capacity. Determination of sizing to
provide 52 MGD capacity shall be based on the current tank volume necessary to provide 30 MGD
capacity.
6.3.2.2 Costs for the methanol feed system.
6.3.2.3 Costs for RSDP disposal, including, but not limited to, pump
stations, pipelines, retreatment, ocean outfall, and monitoring.
6.3.2.4 Costs for the use of existing tertiary water filters for Repurified
Water purposes. Such costs may consider the depreciated value of such filters or use such other
appropriate valuation methods as agreed by the City and authorized representatives of the Metro
JPA. Costs under this section shall be reimbursed or credited by City’s Water Utility to the Metro
System.
6.4 North City Water Reclamation Plant Improvement Costs Included as Metro System
Costs. Notwithstanding the above exclusions, the City and the Participating Agencies have
specifically agreed that the following Capital Improvement Costs and Operation and Maintenance
Costs related to North City Water Reclamation Plant improvements shall be included as Metro
System Costs for purposes of calculating the annual FAB rate (and therefore not qualify as City
Water Utility PW Costs):
6.4.1 Costs for chemically enhanced primary treatment for up to 52 MGD
capacity.
6.4.2 Costs for primary effluent equalization for up to 52 MGD capacity.
6.4.3 Costs for increased volume of aeration tanks that will provide up to, but not
exceeding, 52 MGD capacity.
6.4.4 Costs to add secondary clarifier tanks sufficient for up to 52 MGD capacity.
6.4.5 Costs for wastewater conveyance facilities to provide wastewater for
replacement of Centrate flows that cannot be treated at the North City Water Reclamation Plant
due to the production of Repurified Water.
6.4.6 Costs for treatment and conveyance of all MBC Return (micro-filtration and
tertiary backwash) based on Flow, COD, and TSS.
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6.5 Reallocation of PWP Costs incurred since FY 2014.
6.5.1 The allocation of Pure Water Program costs, retroactive to June 30, 2014,
will be calculated the year the Agreement goes into effect, will be completed no less than two
fiscal years following the production of 30 MGD by Phase 1 of the Pure Water Program.
6.5.1.1 All the O&M task orders, or costs that cannot be directly assigned
to a PWP Phase 1 capital improvement project such as program management, environmental
documents, etc., will be reallocated by the final water/wastewater cost split, and will include
interest accruing since June 2014 at the interest rate earned by the City of San Diego for each
applicable fiscal year as shown by the sample interest calculation included in Exhibit G, Sample
of Interest Calculation. This postpones the reconciliation of costs until the substantial completion
of all construction projects for Phase 1 (City Water Utility PW Costs and Metro). This
reconciliation will be performed during the audit of the fiscal year in which substantial completion
of all projects occurs.
6.5.1.2 All Phase 1 PWP CIP projects were bid and awarded by October
2022 which is FY2023. All shared Phase 1 CIP projects will be reallocated to the actual
construction cost split once the project is awarded, and the cost loaded CPM is completed and
negotiated between the City and the Participating Agencies during the FY2023 audit. All CIP soft
costs incurred since 2014 will be reallocated like the O&M task orders during the audit of the year
of substantial completion of the actual Phase 1 CIP projects. If interest is owed to the Metro
System for soft costs starting in FY 2014, such interest shall be considered Metro System Revenues
consistent with Section 5.5.5.
6.6 Revenue Sharing for Repurified Water.
6.6.1 Background. Initially, the Parties anticipate that the cost per acre foot
associated with the production of Repurified Water will be more expensive than the cost per acre
foot of untreated imported water. However, it is anticipated that Repurified Water produced under
Phase 1 will be less expensive than untreated imported water sometime in the future. Once
Repurified Water produced under Phase 1 becomes less expensive than the cost of untreated
imported water, the Parties agree that there will be revenue from the Pure Water Program.
6.6.2 Calculation. Revenue sharing shall occur in each fiscal year during which
the annual cost per acre foot associated with the production of Repurified Water is less than the
cost of untreated water per acre foot from the San Diego County Water Authority (“CWA”). The
annual cost difference shall be known as “Repurified Water Revenue.” Repurified Water
Revenue shall be determined as follows:
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Annual cost per acre foot of CWA untreated water purchased by the City for
delivery at Miramar Reservoir (which shall be determined based on the total costs for water
actually billed to the City by CWA for water delivered at Miramar Reservoir in a fiscal
year, divided by the number of acre-feet of CWA water delivered at Miramar Reservoir
that year)
less
Annual cost per acre-foot of City Water Utility PW Costs (which shall be
determined based on total annual City Water Utility PW Costs divided by the number of
acre-feet of Repurified Water actually produced in that year)
the result of which is multiplied by
The number of acre feet of Repurified Water produced by Pure Water Program
facilities during the applicable fiscal year.
Exhibit H, Summary of Billings from County Water Authority Showing Costs for
Untreated Water, is a summary of the most recent CWA rate structure and cost allocations to the
City of San Diego for untreated water. The Parties agree that Exhibit H shall be referred to by the
Parties in the future in determining how costs for water delivered at Miramar Reservoir are
calculated. If no untreated water is delivered at Miramar Reservoir in a given year, then the closest
point of delivery of untreated water to the City shall be used. The City shall annually update
Exhibit H to reflect the most recent CWA rate structure and cost allocations to the City of San
Diego.
The City shall estimate whether there will be Repurified Water Revenue in the upcoming
fiscal year prior to January 15 of each year, and these amounts shall be incorporated into the budget
estimates for the upcoming fiscal year to all Parties.
6.6.3 Revenue Sharing. Repurified Water Revenue shall initially be shared
between the City’s Water Utility and the Metro System based on the relative actual Capital
Improvement Costs for the Pure Water Program contributed by City’s Water Utility and the Metro
System. Such Capital Improvement Cost contributions are currently estimated as 62% City’s
Water Utility and 38% Metro System. The Metro System’s portion of the Repurified Water
Revenue shall be applied to debt attributable to the Metro System first, until the debt attributable
to the Metro System is fully paid.
Following full payment of debt attributable to the Metro System, Repurified Water
Revenue shall be shared based on the relative actual Operation and Maintenance Costs for Pure
Water Program facilities contributed by City’s Water Utility and the Metro System, calculated
annually. Such Operation and Maintenance Costs are currently estimated as 76% City’s Water
Utility and 24% Metro System on an annual basis.
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In all instances referred to in this Section 6.6.3, the Metro System portion of the Repurified
Water Revenue shall be allocated among the City and the Participating Agencies consistent with
Section 4.4.2.
6.6.4 Year-End Adjustment. At the end of each fiscal year during which there is
Repurified Water Revenue, the City shall determine the actual cost per acre foot of CWA untreated
water purchased by the City, the actual cost per acre foot of City Water Utility PW Costs, and the
actual amount of Repurified Water produced at Pure Water Program facilities.
Based on the actual cost and production information, the City will recalculate the
Repurified Water Revenue for the prior fiscal year. The City will credit any future charges or bill
for any additional amounts due the quarter after the prior year costs have been audited.
6.6.5 Change in Potable Reuse Method. The Parties acknowledge that the Pure
Water Program Phase 1 will initially use indirect potable reuse surface water augmentation. The
use of CWA untreated water costs in calculating Repurified Water Revenue is intended to provide
an appropriate point of comparison to costs for producing Repurified Water that will be introduced
into surface water. The Parties agree that if the City desires to implement direct potable reuse (in
which Repurified Water would be introduced directly into a water supply pipeline or facility), the
Parties shall meet and negotiate in good faith regarding an amendment to this Section 6.6, to
appropriately update the formula for Repurified Water Revenue, which form of amendment shall
occur via an Administrative Agreement and shall be subject to the Joint Administrative Approval
Process set forth in Section 15.
6.7 Capital Expense Rate.
6.7.1 Background. The Point Loma Wastewater Treatment Plant operates under
a National Pollutant Discharge Elimination System (“NPDES”) permit modified under
section 301(h) & (j)(5) of the Clean Water Act. If such modified permit were ever revoked or not
renewed, the Parties agree that, under current law, the City would have an obligation to upgrade
the PLWTP to secondary treatment. The Parties further agree that $1.8 billion is a fair and
comprehensive estimation of the costs that could be incurred by the Metro System to meet the
legal requirements related to the Metro System under current law. The estimate of $1.8 billion is
based on the net present value of the capital cost to develop 180 MGD of secondary treatment at
PLWTP as of November 15, 2018.
Therefore, the Parties agree that $1.8 billion represents the maximum amount of Capital
Improvement Costs that the Metro System should be obligated to contribute to the Pure Water
Program, the purpose of which is not solely the disposal of wastewater, but also the production of
Repurified Water. The Parties agree that this $1.8 billion maximum contribution should apply
whether or not the PLWTP is actually upgraded to secondary treatment to meet legal requirements
in the future because, as of the date of the Agreement, the Parties have the option of upgrading the
PLWTP to full secondary treatment for the cost of approximately $1.8 billion.
In light of the above, the Parties have agreed that if Metro System costs related to the Pure
Water Program exceed the $1.8 billion, City’s Water Utility will pay a charge for each acre foot
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of secondary treated effluent produced by Metro System facilities and used for the production of
Repurified Water.
6.7.2 Capital Expense Rate. Under the circumstances described in this Section 6.7,
City’s Water Utility shall pay a charge (“Capital Expense Rate”) for each acre-foot of secondary
treated effluent produced by Metro System facilities and used for the production of Repurified
Water. The Capital Expense Rate costs or revenues attributable to the Metro System shall be
assessed or credited consistent with Section 4.4.2. City’s Water Utility shall pay the Capital
Expense Rate if the following costs alone, or in combination, exceed $1.8 billion (which amount
shall be adjusted for inflation):
6.7.2.1 The sum of all Capital Improvement Costs and associated debt
attributable to the Metro System components of the Pure Water Program under this Section 6.7.2;
and/or
6.7.2.2 The sum of all Capital Improvement Costs and associated debt for
the full or partial upgrading of the PLWTP to secondary treatment.
Notwithstanding the above, the Capital Expense Rate shall not apply if the PLWTP is
actually upgraded to secondary treatment (or beyond) due to: (a) a change in federal or state
statutory law making it necessary to upgrade the PLWTP to comply with such new discharge
standard; or (b) a final decision by a state or federal court or a federal administrative agency of
competent jurisdiction that an NPDES permit modified under section 301(h) & G)(5) of the Clean
Water Act is thereby revoked or denied renewal due to a finding that the discharge from the
PLWTP violates anti-degradation rules or regulations promulgated under section 403 of the Clean
Water Act.
6.7.3 Calculation of Capital Expense Rate. The amount per acre-foot of the
Capital Expense Rate shall be determined as follows:
The sum of all Capital Improvement Costs and associated debt
attributable to (i) the Metro System components of the Pure Water Program under
this Section 6 and (ii) upgrading of the PLWTP to secondary treatment (if any)
less
$1.8 billion, as adjusted for inflation each July 1 (starting on July 1, 2019)
to reflect the annual percentage change in the Engineering News Records – Los
Angeles construction cost index
the result of which is multiplied by
1.42 (which estimates the total interest on a 30-year State Revolving Fund
loan with an interest rate of 2.5%)
the result of which is divided by
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The total number of acre feet per year of secondary treated effluent that is
expected to be produced by Metro System facilities for the production of
Repurified Water over a period of thirty (30) years.
The City shall estimate whether the Capital Expense Rate shall apply to the upcoming fiscal
year (and its amount) prior to January 15 of each year, and the estimated amount of the Capital
Expense Rate shall be effective on July 1 of the upcoming fiscal year.
For purposes of this Section 6.7.3, Capital Improvement Costs and associated debt shall
include such costs and revenue incurred by the Metro System prior to the effective date of the
Agreement.
6.7.4 Year-End Adjustment. At the end of each fiscal year during which the
Capital Expense Rate applies, the City shall determine the actual Capital Improvement Costs and
associated debt attributable to the Metro System components of the Pure Water Program under
this Section 6 and any upgrading of the PLWTP to secondary treatment, and the actual amount of
secondary treated effluent produced by Metro System facilities and used for the production of
Repurified Water.
Based on the actual cost, interest, and effluent information, the City will recalculate the
Capital Expense Rate for the prior fiscal year. The City will credit any future charges or bill for
any additional amounts due the quarter after the prior year costs have been audited.
6.7.5 Duration; Expiration. The Capital Expense Rate shall continue until the cost
difference between (a) the actual sum of Pure Water Program Capital Improvement Costs and
associated debt attributable to the Metro System under Section 6.7 and/or the costs to upgrade the
PLWTP and (b) $1.8 billion (as adjusted for inflation), has been fully paid, or the Agreement
expires, whichever is sooner. Notwithstanding, it is the express intent and desire of the City and
the Participating Agencies that if the Agreement expires before the cost difference has been paid
through the Capital Expense Rate, that the Capital Expense Rate continue in any extension of this
Agreement negotiated by the Parties pursuant to Section 14.2 until the cost difference has been
fully paid.
6.8 Amending Pure Water Program Cost Allocation and Revenues – Phase 1. Except
as otherwise provided in Section 6.6.2, the Parties may amend any provision in this Section 6
regarding the Finance, Budgeting, and Accounting for the Pure Water Program Cost Allocation
and Revenues for Phase 1 in an Administrative Agreement subject to the Joint Administrative
Approval Process set forth in Section 15.
7. FINANCE, BUDGETING, AND ACCOUNTING: PURE WATER PROGRAM
COST ALLOCATION AND REVENUES – PHASE 2
7.1 Pure Water Program – Phase 2. The Second Phase of the Pure Water Program
(“Phase 2”) shall create up to an additional 53 MGD of Repurified Water at Phase 2 facilities. The
Parties agree to incorporate all terms relating to Phase 2 into this Agreement through an
Administrative Agreement subject to the Joint Administrative Approval Process set forth in
Section 15, subject to the requirements set forth in this Section 7 below.
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7.2 Costs Excluded As Metro System Costs.
Costs Excluded from Metro System Costs for Phase 2 shall be identified in an
Administrative Agreement subject to the Joint Administrative Approval Process and approvals set
forth in Section 15. However, the Administrative Agreement must reflect that all of the following
PWP Phase 2 costs, including Capital Improvement Costs, Operation and Maintenance Costs, and
other related costs (including administration, insurance, claims, and overhead) shall be excluded
from Metro System Costs for the purposes of calculating the annual Phase 2 FAB rate, and shall
be City Water Utility PW Costs:
7.2.1 Costs of the Phase 2 Water Repurification System and any Metro System
facilities to the extent constructed, modified, expanded, or used for the purpose of treating water
beyond secondary treatment (ocean discharge standard under current law). This shall include costs
for preliminary treatment, primary treatment, and secondary treatment to the extent such costs are
higher than they would otherwise be due to the production of Phase 2 Repurified Water.
7.2.2 Costs for fail-safe disposal, if necessary, for design capacity for Phase 2
Repurified Water, including, but not limited to, any costs associated with the reservation of
capacity at the Point Loma Wastewater Treatment Plant.
7.2.3 Costs for the demolition or replacement of existing Metro System facilities
with similar facilities for the purpose of making space available for Phase 2 Water Repurification
System facilities. Such costs may take into account the current asset value or market value of the
existing Metro System facility.
7.2.4 Costs for the Phase 2 methanol feed system.
7.2.5 Costs for Phase 2 RSDP disposal including, but not limited to, pump
stations, pipelines, retreatment, ocean outfall, and monitoring.
7.2.6 50% of the costs for the MBR Tanks and system for Phase 2.
7.2.7 All membrane integrity monitoring systems for Phase 2.
7.2.8 All Phase 2 systems downstream of MBR’s.
7.3 Revenue Sharing for Repurified Water – Phase 2. Terms regarding revenue sharing
for Repurified Water for Phase 2 shall be identified in an Administrative Agreement subject to the
Joint Administrative Approval Process set forth in Section 15. However, this Administrative
Agreement must reflect terms related to Phase 2 revenue sharing for Repurified Water that
conceptually mimic those terms set forth in Section 6.6. The Metro System portion of the
Repurified Water Revenue for Phase 2 shall be allocated among the City and the Participating
Agencies consistent with Section 4.4.2, as may be amended or updated to account for changes in
PWP Phase 2.
7.4 Capital Expense Rate – Phase 2. Terms regarding the Capital Expense Rate for
Phase 2 shall be identified in an Administrative Agreement subject to the Joint Administrative
Approval Process and approvals set forth in Section 15. However, this Administrative Agreement
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must reflect terms that conceptually mimic the terms in Section 6.7, reflecting a continuation of
the Capital Expense Rate through Phase 2 up until the PWP achieves up to 83 MGD of Repurified
Water, taking into account production of water suitable for potable reuse occurring at all treatment
processes for wastewater upstream from and at the PLWTP. The Pure Water Program Capital
Expense Rate costs or revenues attributable to the Metro System shall be assessed or credited
consistently with Section 4.4.2, as may be amended or updated to account for changes in PWP
Phase 2.
8. FUTURE NEGOTIATIONS AND COOPERATION
This Agreement specifically contemplates Phase 1 and Phase 2 of the Pure Water Program,
which consists of new, expanded, or modified Metro System and Water Repurification System
facilities projected to produce up to 83 million gallons per day of Repurified Water. The Parties
intend to meet and negotiate in good faith regarding the referenced Administrative Agreements
identified in this Agreement. All items outside the scope of the Joint Administrative Approval
Process shall be negotiated by the Parties through the amendment processes described in
Section 16.3, if necessary.
9. THE METRO COMMISSION
9.1 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
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
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the City’s list of boards and commissions on the City’s website. The City shall present the position
of the majority of the Metro JPA to the City’s governing body in written staff reports. The Metro
JPA may prepare and submit materials in advance and may appear at any City hearings on Metro
System matters and present its position to the governing body of the City.
9.2.2 The Metro JPA may advise the City of its position on any issue relevant to
the Metro System.
9.3 Delegation of Decision-Making Authority of the Metro JPA. The Participating
Agencies hereby delegate to the Metro JPA the authority to take certain actions pursuant to the
approval processes provided in this Agreement, as permitted by law, including but not limited to
Government Code 6506. The Participating Agencies agree that the Metro JPA has delegated
authority to approve Administrative Agreements on behalf of each Participating Agency pursuant
to the process set forth in Section 15. The Participating Agencies agree and acknowledge that the
Metro JPA has authority to bind each Participating Agency to Administrative Agreements through
the Joint Administrative Approval Process. All Participating Agencies agree to promptly execute
Administrative Agreements after approval by the Metro JPA. By signing this Agreement, each
Participating Agency is expressly preapproving such actions.
9.4 Standing. If a dispute arises among the Parties relating to or arising from a Party’s
obligation under this Agreement or an associated Administrative Agreement, the Metro JPA shall
have standing to enforce the terms of this Agreement against the City on behalf of two or more
Participating Agencies if a majority of the Metro JPA votes to take action relating to this
Agreement on behalf of two or more Participating Agencies.
10. DISPUTE RESOLUTION
This Section governs all disputes arising out of this Agreement and any associated
Administrative Agreements.
10.1 Mandatory Non-Binding Mediation. If a dispute arises among the Parties relating
to or arising from a Party’s obligations under this Agreement or an associated Administrative
Agreement that cannot be resolved through informal discussions and meetings, the Parties
involved in the dispute shall first endeavor to settle the dispute in an amicable manner, using
mandatory non-binding mediation under the rules of JAMS, AAA, or any other neutral
organization agreed upon by the Parties before having recourse in a court of law. Mediation shall
be commenced by sending a Notice of Demand for Mediation to the other Party or Parties to the
dispute. A copy of the notice shall be sent to the City, all other Participating Agencies, and the
Metro JPA.
10.2 Selection of Mediator. A single mediator that is acceptable to the Parties involved
in the dispute shall be used to mediate. The mediator will be knowledgeable in the subject matter
of this Agreement, if possible, and chosen from lists furnished by JAMS, AAA, or any other agreed
upon mediator.
10.3 Mediation Expenses. The expenses of witnesses for either side shall be paid by the
Party producing such witnesses. All mediation costs, including required travel and other expenses
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of the mediator, and the cost of any expert advice produced at the direct request of the mediator,
shall be Metro System costs.
10.4 Conduct of Mediation. Mediation hearings will be conducted in an informal manner.
Discovery shall not be allowed. The discussions, statements, writings and admissions and any
offers to compromise during the proceedings will be confidential to the proceedings (pursuant to
California Evidence Code sections 1115 - 1128 and 1152) and will not be used for any other
purpose unless otherwise agreed by the Parties in writing. The Parties may agree to exchange any
information they deem necessary. The Parties involved in the dispute shall have representatives
attend the mediation who are authorized to settle the dispute, though a recommendation of
settlement may be subject to the approval of each agency’s boards or legislative bodies. Either
Party may have attorneys, witnesses or experts present.
10.5 Mediation Results. Any resultant agreements from mediation shall be documented
in writing. The results of the mediation shall not be final or binding unless otherwise agreed to in
writing by the Parties. Mediators shall not be subject to any subpoena or liability and their actions
shall not be subject to discovery.
10.6 Performance Required During Dispute. Nothing in this Section shall relieve the
City and the Participating Agencies from performing their obligations under this Agreement. The
City and the Participating Agencies shall be required to comply with this Agreement, including
the performance of all disputed activity and disputed payments, pending the resolution of any
dispute under this Agreement.
11. INSURANCE
11.1 City Shall Maintain All Required Insurance.
11.1.1 Throughout the term of this Agreement the City shall procure and maintain
in effect liability insurance covering Metro System assets and operations in the same manner, and
to the same extent, as the City insures similar assets and operations of the City. Such insurance
may be provided through separate policies for the Metro System, or by consolidating the Metro
System with other City assets and operations for insurance purposes. If the Metro System is insured
separately, policy limits, deductibles, and self-insured retentions shall be equivalent to what the
City procures for other similar City assets and operations. The City shall maintain all insurance
required by law, including workers’ compensation insurance, and may self-insure for certain losses
when allowed by law. The proportionate cost of insurance for the Metro System shall be included
in the computation of the FAB.
11.1.2 If the Metro System is insured separately, any policy or policies of liability
insurance carried by the City for the Metro System shall name the Participating Agencies as
additional insureds with evidence of same supplied to each upon request.
11.1.3 Upon request by the Metro JPA or a Participating Agency, the City shall
promptly provide written coverage and policy information, including, but not limited to, the scope
of coverage, policy limits, deductibles, and self-insured retentions, including information on any
claims made against the policies and remaining limits and deductibles.
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11.2 Substantially Equivalent Coverage. In the event of a transfer of the Metro System
to a nonpublic entity pursuant to Section 2.1, coverage substantially equivalent to all the above
provisions shall be maintained by any successor in interest.
12. INTERRUPTION OF SERVICE
Should the Metro System services to the Participating Agencies be interrupted as a result
of a major disaster, by operation of federal or state law, or other causes beyond the City’s control,
the Participating Agencies shall continue all payments required under this Agreement during the
period of interruption.
13. NOTICES REQUIRED UNDER AGREEMENT
The City and each Participating Agency shall give notice when required by this Agreement.
All notices required by this Agreement must be in writing and must be sent via email and either
served personally or mailed via first class U.S. mail. The notices shall be sent to the officer listed
for each Party, at the address and email address listed for each Party in Exhibit D, Notice Listing,
in accordance with this Section. If a Party wishes to change the officer and/or address to which
notices are given, the Party shall notify all other Parties in accordance with this Section. Upon such
notice, the City shall amend Exhibit D to reflect the changes. The amendment shall be made within
sixty (60) days after receipt of the Party’s notice regarding the change in officer and/or address.
The City shall keep an updated version of Exhibit D, notated with the most recent amendment
date, on file with the City Public Utilities Department. The City shall provide a copy of the
amended Exhibit D to all Parties by no later than sixty (60) days after amending Exhibit D.
14. EFFECTIVE DATE AND EXPIRATION
14.1 Effective Date. This Agreement shall be effective on July 1 of the fiscal year
commencing after execution by the City and all of the Participating Agencies and shall be dated
as of the signature date of the last executing Party. For example, irrespective of whether the last
executing Party signs this Agreement on September 1, 2025, January 1, 2026, or June 30, 2026,
the effective date of the Agreement would be July 1, 2026.
14.2 Expiration. Subject to the rights and obligations set forth in Section 14.3, unless
amended, replaced, or terminated earlier by mutual consent of all the Parties, this Agreement shall
expire on June 30, 2065. This Agreement is subject to extension by agreement of the Parties. The
Parties shall commence discussions on an agreement to provide wastewater treatment services
beyond the year 2065 on or before December 31, 2055, or at such time, if any, that the PLWTP is
required to be upgraded to secondary treatment. The Parties may create, amend or terminate any
associated Administrative Agreements addressing implementation of this Agreement, as provided
in this Agreement.
14.3 Contract Capacity Rights Survive Expiration. The Participating Agencies’ Contract
Capacity rights and rights to obtain wastewater treatment services from the facilities referred to in,
or constructed pursuant to this Agreement shall survive the expiration of the Agreement. Provided,
however, for any Participating Agency to exercise such rights, the Participating Agency shall
comply with all the following requirements: (a) provide at least six months’ written notice prior to
the expiration of this Agreement; (b) upon expiration of this Agreement, pay their proportional
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share of Metro System Costs according to the billing methodologies set forth in this Agreement in
order to maintain their right(s) to such wastewater treatment services; and (c) agree to recalculate
and pay proportional share of future Metro System Costs based on the City’s and all remaining
Participating Agencies’ proportionate shares. In the event this Agreement expires and one or more
Participating Agency(ies) continue to pay their proportional share of all Metro System Costs, the
City shall have the right to continue managing, operating, and expanding the Metro System subject
to the same terms set forth in this Agreement, unless otherwise agreed to in writing by and between
the City and a Participating Agency. In the event one or more Participating Agency(ies) exercise
its/their right(s) to maintain Contract Capacity and wastewater treatment services, such
Participating Agency(ies) shall also maintain the right to continue receiving any and all revenues
contemplated by this Agreement, including, but not limited to, Metro System Revenues.
14.4 Abandonment. After June 30, 2065, the City may abandon operation of the Metro
System upon delivery of notice to the Participating Agencies ten (10) years in advance of said
abandonment. Upon notice by the City to abandon the Metro System, the Parties shall meet and
confer over the nature and conditions of such abandonment. In the event the Parties cannot reach
agreement, the matter shall be submitted to mediation under Section 10. In the event of
abandonment, the City shall retain ownership of all Metro System assets free of any claim of the
Participating Agencies. Abandonment by the City with continued operation by a different entity
shall not terminate or affect a Contract Capacity rights of a Participating Agency so long as that
Participating Agency has continued to pay their proportional share of Capital Improvement Costs
and Operation and Maintenance Costs according to the billing methodologies set forth in this
Agreement. Nothing in this language shall be construed to require the City to continue as operator
of the Metro System after the ten-year (10) notice period has run.
15. ADMINISTRATIVE AGREEMENTS
15.1 Use and Process for Administrative Agreements.
15.1.1 Purpose. Administrative Agreements are intended to implement the intent
of the Parties in an efficient and effective manner without reopening or renegotiating the terms of
this Agreement. Administrative Agreements are limited to addressing issues that are authorized by
this Agreement. Administrative Agreements are separate and distinct from Exhibits to this
Agreement, and are designed to address procedural, operational, technical, and administrative
issues. Terms in this Agreement may only be modified through the Joint Administrative Approval
Process if this Agreement expressly authorizes the use of an Administrative Agreement.
15.1.2 Amendments, Supplements, or Successors to Administrative Agreements.
Where this Agreement refers to an Administrative Agreement, such reference shall include any
amendment(s) to that Administrative Agreement or supplemental or successor Administrative
Agreement(s).
15.1.3 Function. Administrative Agreements are made among all the Parties but
deal with a specific function or group of like functions, for the benefit of regional wastewater
treatment within the Metro System, or for the implementation of this Agreement.
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15.1.4 Current Agreements. The Administrative Agreements which are approved
and executed simultaneously with the execution of this Agreement are listed Exhibit I, List of
Administrative Agreements. The City shall update Exhibit I each time an Administrative
Agreement is approved, amended, revised or terminated pursuant to this Agreement.
15.1.5 Development and Joint Administrative Approval Process. Any Party can
present an Administrative Agreement, or an amendment or supplement thereto, or termination
thereof, to the City for approval by way of the Joint Administrative Approval Process set forth
in this Section. The City will endeavor in good faith to respond within 60 days of submission of
a proposed Administrative Agreement. If the City needs additional time to evaluate the proposed
Administrative Agreement, it will advise all Participating Agencies in writing of the anticipated
review time. Once an Administrative Agreement receives City’s Administrative Approval, then,
with respect to the Participating Agencies, the proposed Administrative Agreement may be
presented to the Metro JPA at a duly noticed meeting for review and a first reading. Sixty (60)
days or more after the first reading, after the Metro JPA Directors have had opportunity to consult
with their respective agency staff and governing boards, the Administrative Agreement may be
presented at a duly noticed meeting for a second reading and approved upon an affirmative vote
by no less than two-thirds of the members of the Metro JPA during a duly noticed public meeting
(in other words, upon the affirmative vote of at least eight or more of the twelve members of the
Metro JPA, irrespective of how many Metro JPA Directors are present at the meeting, unless the
number of Participating Agencies changes). If the second reading does not occur within One
Hundred and Twenty (120) days after the first reading, the proposed Administrative Agreement
shall no longer be taken into consideration, unless the City and the Metro JPA Directors agree to
a different timeline. An Administrative Agreement, amendment thereto, or termination thereof,
must receive City’s Administrative Approval and at least a two-third affirmative vote by the Metro
JPA Directors before it can become effective. Administrative Agreements are binding contracts as
against the City and all Participating Agencies, irrespective of whether or not any Participating
Agency’s particular Metro JPA Director voted to approve the agreement or not, or was absent or
abstained. The Metro JPA has the authority to bind the Participating Agencies to Administrative
Agreements pursuant to the delegated authority provided to the Metro JPA in Section 9.3 herein.
16. GENERAL
16.1 Exhibits.
16.1.1 Exhibit List. This Agreement references Exhibits A through J. Each exhibit
is attached to this Agreement and is incorporated herein by reference. All exhibits to this agreement
shall be listed in Exhibit J, Exhibit List. The City shall update the Exhibit List from time to time
each time an Exhibit is amended or revised pursuant to this Agreement.
16.2 Electronic Exhibits and Attachments. Acknowledgement and Acceptance: The
Parties hereby acknowledge and agree that the exhibit(s) and attachment(s) related to this
Agreement, or any of its associated Administrative Agreements, indicated as an Electronic
Exhibits above (collectively, the “Electronic Exhibits”) may be in an electronic format that cannot
be readily or accurately converted into a physical or printed form. The Parties expressly agree that
such Electronic Exhibits shall nonetheless be deemed to be valid and enforceable attachments to
this Agreement and shall be incorporated by reference as if fully set forth herein.
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16.2.1 Identification and Access: All Electronic Exhibits shall bear the same
Exhibit identifier and name (i.e., Exhibit A – Metro Facilities) set forth in the Exhibit List, and
shall be clearly identified as an Electronic Exhibit in the Exhibit List, including a file name, a time
stamp of file, and a note indicating the software used to open and view the file, including version.
The Electronic Exhibit shall be loaded on to a CD-ROM, DVD-ROM, or other electronic storage
medium that is a write-once medium without the ability to further edit. Each Party shall receive an
identical copy of the Electronic Exhibit(s) via identical storage mediums. The City shall ensure
that all Participating Agencies have full and unrestricted access to Electronic Exhibits for the
duration of the Agreement and any applicable retention period thereafter, including by providing
access to any necessary software, applications, or systems required to view, interact with, or
manipulate the Electronic Exhibits in their native format; such as through website access via the
GIS Online platform: https://sandiego.maps.arcgis.com. No interaction or manipulation of any
Electronic Exhibit shall in any way constitute a bona fide change or amendment to the Electronic
Exhibit.
16.2.2 Storage and Security: Each Party shall be responsible for securely storing
and maintaining the integrity of the Electronic Exhibits in their possession or control. This includes,
but is not limited to, implementing and maintaining reasonable and appropriate technical,
administrative, and physical safeguards to protect the confidentiality, availability, and integrity of
the Electronic Exhibits, and to prevent unauthorized access, disclosure, alteration, or destruction
thereof.
16.2.3 Authentication and Admissibility: The Parties hereby stipulate and agree
that the Electronic Exhibits shall be deemed to be original documents and authentic for all purposes
under applicable law, and that the Parties may rely upon and introduce such Electronic Exhibits as
evidence in any proceeding arising out of or relating to this Agreement, without the need for further
foundation, authentication, or certification.
16.2.4 Receipt and Completeness: Each Party hereby acknowledges and confirms
that they have received, reviewed, and had a reasonable opportunity to inspect all Electronic
Exhibits that are attached to and incorporated into this Agreement as of the Effective Date. By
executing this Agreement, each Party represents and warrants that, to the best of their knowledge,
the Electronic Exhibits are complete, accurate, and free from material errors, omissions, or defects.
The Parties further agree to notify the other Party promptly upon discovering any discrepancies or
inaccuracies in the Electronic Exhibits, and to cooperate in good faith to resolve any such issues
in a timely manner.
16.2.5 Amendments and Modifications to Electronic Exhibits: Any amendments
or modifications to the Electronic Exhibits shall be made in accordance with the procedures set
forth in this Agreement for amending or modifying the terms and conditions hereof, and any such
amended or modified Electronic Exhibits shall be deemed to replace and supersede any prior
version thereof. Amended Electronic Exhibits shall also be loaded onto a new and separate CD-
ROM, DVD-ROM, or other electronic storage medium that is a write-once medium without the
ability to further edit. Each Party shall receive identical copies of the Electronic Exhibits via
identical storage mediums. Amended Electronic Exhibits shall bear identical Exhibit Identifiers as
their predecessor exhibits, but with a different suffix (for example, Exhibit A, when amended, shall
be identified as Exhibit A-1, a subsequent amendment shall be identified as Exhibit A-2, etc.).
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16.3 Amendments to Agreement. There shall be four (4) ways to amend, modify, and/or
change the terms set forth in this Agreement:
16.3.1 Amendments. Except as set forth in Sections 16.3.2, 16.3.3, and 16.3.4,
amendments to this Agreement require the approval of all Parties. Such amendments must be in
writing and signed by a duly authorized representative from each Party. Unless specifically
referenced as being subject to one of the approval mechanisms set forth in Sections 16.3.2, 16.3.3,
or 16.3.4 below, any amendment, modification, and/or changes to the terms of this Agreement
must occur pursuant to this Section 16.3.1. This provision controls over all other provisions in this
Agreement.
16.3.2 Joint Administrative Approval Process. As set forth in this Agreement, the
Joint Administrative Approval Process requires the approval described in Section 15.1.5. The
following actions may be taken subject to the Joint Administrative Approval Process:
(a) Agreements for New Contract Capacity as specifically set forth in
Section 3.3
(b) Addition of new Metro Facilities or conversion of City facility to a
Metro facility as specifically set forth in Section 4.2
(c) Changes to Exhibit E (Methodology for Contract Capacity
Transfers)
(d) Revisions to FAB as specifically set forth in Section 5.2.1.3, except
as provided therein
(e) Changes to Finance, Budgeting, and Accounting System of Charges
as specifically set forth in Section 5.11
(f) Changes to Costs Excluded from Metro System Costs – Phase 1 as
specifically set forth in Section 6.3
(g) Amending the formula for Repurified Water Revenue as specifically
set forth in Section 6.6.2
(h) Changes to Finance, Budgeting, and Accounting for the Pure Water
Program Cost Allocation and Revenues for Phase 1 as specifically
set forth in Section 6.8
(i) Certain terms relating to Phase 2 as specifically set forth in
Section 7.1
(j) Changes to Costs Excluded from Metro System Costs – Phase 2 as
specifically set forth in Section 7.2
(k) Terms regarding revenue sharing for Repurified Water for Phase 2
as specifically set forth in Section 7.3
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(l) Terms regarding the Capital Expense Rate for Phase 2 as
specifically set forth in Section 7.4
(m) Creation, changes, amendments, modifications to, or terminations
of any Administrative Agreements as specifically set forth in
Article 15.
16.3.3 Two-Party Approval. As set forth in this Agreement, Two-Party Approval
requires the City’s Administrative Approval and a two-thirds (2/3) vote or greater of the Metro
JPA Directors present at a duly noticed Metro JPA public meeting. The following actions may be
taken subject to Two-Party Approval:
(a) Determinations regarding liability as specifically set forth in
Section 2.5.5
(b) Contract Capacity Transfers – Decreases as specifically set forth in
Section 4.4.3.2
(c) Changes to Strength measurements as specifically set forth in
Section 4.5.2
16.3.4 City Administrative Approval. As set forth in this Agreement, the City’s
Administrative Approval requires discussion, evaluation, and approval by the Director of the City
of San Diego’s Public Utilities Department or their designee. The City may, in the City’s sole
discretion, refer a decision subject to the City’s Administrative Approval to the City Council for a
recommendation, approval, or other action. No action is required on the part of a Participating
Agency. The following actions may be taken subject to the City’s Administrative Approval:
(a) Transfers of Contract Capacity as specifically set forth in
Section 3.2
(b) Reductions in Metro System Capacity as specifically set forth in
Section 3.4
(c) Amending Exhibit B as specifically set forth in Section 3.6
(d) Amending Exhibit A as specifically set forth in Section 4.2
(e) Contract Capacity Transfers – Increases as specifically set forth in
Section 4.4.3.1
(f) Changes to Exhibit F (Metro System Flow Formulas and Sampling
Locations) as specifically set forth in Section 4.5.1
(g) Changes to FAB to include measurements required by law as
specifically set forth in Section 5.2.1.3
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(h) Changes to Exhibit H if CWA changes their rate structure as
specifically set forth in Section 6.6.2
(i) Changes to Exhibit D (Notice) as specifically set forth in Section 13.
16.4 Construction of Agreement.
16.4.1 Drafting of Agreement. It is acknowledged that the City and the
Participating Agencies, with the assistance of competent counsel, have participated in the drafting
of this Agreement and that no ambiguity should be construed for or against the City or any
Participating Agency on account of such drafting.
16.4.2 Entire Agreement. The City and each Participating Agency represent,
warrant and agree that no promise or agreement not expressed herein has been made to them, that
this Agreement contains the entire agreement between the Parties, that this Agreement supersedes
any and all prior agreements or understandings between the Parties unless otherwise provided
herein, and that the terms of this Agreement are contractual and not a mere recital; that in executing
this Agreement, no Party is relying on any statement or representation made by the other Party, or
the other Party’s representatives concerning the subject matter, basis or effect of this Agreement
other than as set forth herein; and that each Party is relying solely on its own judgement and
knowledge.
16.4.3 Agreement Binding on All; No Third-Party Beneficiaries. This Agreement
shall be binding upon and shall inure to the benefit of each of the Parties, and each of their
respective successors, assigns, trustees or receivers. All the covenants contained in this Agreement
are for the express benefit of each and all such Parties. This Agreement is not intended to benefit
any third parties, and any such third-party beneficiaries are expressly disclaimed.
16.4.4 Severability.
16.4.4.1 Should any provision of this Agreement or any associated
Administrative Agreement be held invalid or illegal, such invalidity or illegality shall not
invalidate the whole of the Agreement, but, rather, the Agreement shall be construed as if it did
not contain the invalid or illegal part, and the rights and obligations of the Parties shall be construed
and enforced accordingly except to the extent that enforcement of the Agreement without the
invalidated provision would materially and adversely frustrate either the City’s or a Participating
Agency’s essential objectives set forth in this Agreement or the applicable Administrative
Agreement.
16.4.4.2 Should a court determine that one or more components of the
allocation of costs set forth in this Agreement or any associated Administrative Agreement places
the City or a Participating Agency in violation of Article XIII D, Section 6 of the California
Constitution with respect to their ratepayers, such components shall no longer be of force or effect.
In such an event, the City and the Participating Agencies shall promptly meet to renegotiate the
violative component of the cost allocation to comply with Article XIII D, Section 6 of the
California Constitution, and use the dispute resolution process in Section 10 of this Agreement if
an agreement cannot be reached through direct negotiation.
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16.4.4.3 Should a state or federal agency provide a final, written
determination that the method of allocating Pure Water Program Capital Improvement Costs under
this Agreement violates the requirements of state or federal grants or loans which are, or will be,
used to fund the wastewater components of the Pure Water Program, such allocation method will
no longer be of any force or effect. In such an event, the allocation of Repurified Water Revenue
and the Capital Expense Rate will continue to be based on the Parties’ actual payments to fund the
Pure Water Program Capital Improvement Costs attributable to the Metro System. The City and
the Participating Agencies shall also promptly meet to negotiate an alternative cost allocation
method that would comply with such grant or loan funding requirements.
16.4.5 Choice of Law. This Agreement and any of its associated Administrative
Agreements shall be construed and enforced pursuant to the laws of the State of California.
16.4.6 Recognition of San Diego Sanitation District as Successor to Certain Parties.
The Parties hereby acknowledge and agree that the San Diego County Sanitation District is a
Participating Agency under this Agreement as the successor in interest to the Alpine Sanitation
District, East Otay Mesa Sewer Maintenance District, Lakeside Sanitation District, Spring Valley
Sanitation District, and Winter Gardens Sewer Maintenance District.
16.5 Declarations Re: Agreement.
16.5.1 Understanding of Intent and Effect of Agreement. The Parties expressly
declare and represent that they have read the Agreement and that they have consulted with their
respective counsel regarding the meaning of the terms and conditions contained herein. The Parties
further expressly declare and represent that they fully understand the content and effect of this
Agreement and they approve and accept the terms and conditions contained herein, and that this
Agreement is executed freely and voluntarily.
16.5.2 Warranty Regarding Obligation and Authority to Enter Into This
Agreement. Each Party represents and warrants that its respective obligations herein are legal and
binding obligations of such Party, that each Party is fully authorized to enter into this Agreement,
and that the person signing this Agreement hereinafter for each Party has been duly authorized to
sign this Agreement on behalf of said Party.
16.6 Right to Make Other Agreements. Nothing in this Agreement limits or restricts the
right of the City or the Participating Agencies to make separate agreements among themselves,
including through joint powers agreements, without the need to amend this Agreement, provided
that such agreements are consistent with this Agreement. Nothing in this Agreement or Section 6
limits or restricts the right of the City or the Participating Agencies to enter into separate
agreements regarding the industrial pretreatment program, or for the purchase or sale of Repurified
Water produced by the Water Repurification System, or sharing in City Water Utility PW Costs;
however, such agreements shall not affect the cost allocation and Metro System revenues
delineated in Section 5.
16.7 Statute of Limitations to Resolve Billing Issues. Notwithstanding any longer statute
of limitations in State law, if the City or a Participating Agency wishes to dispute a bill (including,
but not limited to, an audited bill or an audit reconciliation) on the basis of an alleged overpayment
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or underpayment arising under this Agreement, the Party alleging the dispute must provide written
notice regarding the disputed bill to all Parties to this Agreement promptly upon discovery of such
a billing issue. The written notice shall invoke or reference this Section. The Parties agree that
such refunds or collections shall not accrue for more than three (3) years from the date that such
billing is received by the Participating Agency, or one (1) year from the date that an audited
reconciliation is received by the Participating Agency, whichever date is later. The City and the
Participating Agencies hereby waive any applicable statute of limitations available under State law
that exceed the time frames set forth in this Section 16.7. Upon receipt of the written notice
regarding the billing dispute, any Participating Agency wishing to participate in the resolution of
the dispute shall be allowed to do so and to present evidence to all Parties in support of their
position. The involved Parties’ determination regarding the outcome of the billing dispute,
including any related adjustments to each Participating Agency’s share of net Metro System costs
or revenues resulting from the resolution of such billing issues, shall be final. Nothing in this
section relieves a Participating Agency from its obligations to make timely payments under this
Agreement irrespective of whether or not a bill is being disputed. If the Parties are unable to resolve
a billing dispute, the Parties shall utilize the dispute resolution processes in this Agreement.
16.8 Counterparts and Electronic Signatures. This Agreement may be executed in
counterparts. This Agreement shall become operative as soon as one counterpart hereof has been
executed by each Party. The counterparts so executed shall constitute one Agreement
notwithstanding that the signatures of all Parties do not appear on the same page. A faxed, .pdf, or
other electronic copy of the fully executed original version of this Agreement shall have the same
legal effect as an executed original for all purposes. Electronic signatures (including but not limited
to signatures via DocuSign) shall be acceptable, enforceable, and shall have the same legal effect
as an original signature.
16.9 Transparency. Upon request, the City shall promptly provide each Participating
Agency with access to all records and information reflecting Flow and Strength of sewage in the
Metro System, including, but not limited to, Flow data from all Metro System meters, worksheets
or calculations that are used by City to develop cost information for any costs contemplated by
this Agreement, and any Strength or other data utilized by the City when calculating annual sewage
Flow and/or other costs imposed pursuant to this Agreement (including, but not limited to,
pretreatment costs). The Parties shall work in good faith together to ensure the Participating
Agencies have reasonable and full transparency under this Agreement.
16.10 Incorporation of Recitals. All of the recitals set forth in this Agreement, and all of
the exhibits attached to this Agreement, are by this reference incorporated in and made a part of
this Agreement as though fully set forth herein.
16.11 Joint Exercise of Power. It is the intent of the Parties that this Agreement is intended
to exercise the governmental authority granted pursuant to Gov. Code Section 6500 et seq. which
provides for the joint exercise of governmental powers.
- 46 -
10-23-25
4907-3419-6844
IN WITNESS WHEREOF, the Parties have executed this Second Amendment and
Restated Regional Wastewater Disposal Agreement and the associated Administrative
Agreements(s) identified herein as of the date first set forth above.
CITY OF CHULA VISTA
Name:
Title:
Approved as to Form:
Name:
Title:
CITY OF CORONADO
Name:
Title:
Approved as to Form:
Name:
Title:
CITY OF DEL MAR
Name:
Title:
Approved as to Form:
Name:
Title:
CITY OF EL CAJON
Name:
Title:
Approved as to Form:
Name:
Title:
CITY OF IMPERIAL BEACH
Name:
Title:
Approved as to Form:
Name:
Title:
CITY OF LA MESA
Name:
Title:
Approved as to Form:
Name:
Title:
- 47 -
10-23-25
4907-3419-6844
LEMON GROVE SANITATION DISTRICT
Name:
Title:
Approved as to Form:
Name:
Title:
CITY OF NATIONAL CITY
Name:
Title:
Approved as to Form:
Name:
Title:
OTAY WATER DISTRICT
Name:
Title:
Approved as to Form:
Name:
Title:
PADRE DAM MUNICIPAL WATER
DISTRICT
Name:
Title:
Approved as to Form:
Name:
Title:
CITY OF POWAY
Name:
Title:
Approved as to Form:
Name:
Title:
CITY OF SAN DIEGO
Name:
Title:
Approved as to Form:
Name:
Title:
SAN DIEGO COUNTY SANITATION
DISTRICT
Name:
Title:
Approved as to Form:
Name:
Title:
- 48 -
10-23-25
4907-3419-6844
EXHIBIT I
LIST OF ADMINISTRATIVE AGREEMENTS
NO.TITLE EFFECTIVE
DATE
AMENDMEN
T DATE
1.Agreement Between City of San Diego and
Participating Agencies in the Metropolitan Sewerage
System for Unified Management of Industrial Waste
Discharge Pretreatment and Enhanced Source
Control Programs
2.
- 49 -
10-23-25
4907-3419-6844
EXHIBIT J
EXHIBIT LIST
Exhibit Name Amended Date
A
Metro Facilities (Electronic Exhibit); file name: 2025-10_Exhibit
A Metro Facilities.aprx; time stamp of file: 10/23/2025 3:38 PM,
software used to open and view file including version: ArcGIS
Pro 3.5.0; included herewith as CD-ROM/DVD-ROM
B Distribution of Wastewater System Capacity Rights
C Administrative Protocol on Allocation of Operating Reserves and
Debt Service Coverage to Participating Agencies
D Notice Listing
E Methodology for Contract Capacity Transfers
F Metro System Flow Formulas and Sampling Locations
G Sample of Interest Calculation
H Summary of Billings from County Water Authority Showing
Costs for Untreated Water
I List of Administrative Agreements
J Exhibit List
SARA EXHIBITS A-H
Accompanying SARA 10/23/25
ATTACHMENT E
Exhibit A: Listing of Metro Facilities as of 10/23/2025
Metro Facilities (Electronic Exhibit);
file name: 2025-10_Exhibit A Metro Facilities.aprx
time stamp of file: 10/23/2025 3:38 PM
software used to open and view file including version:
ArcGIS Pro 3.5.
1 The South Bay Land/Ocean Outfall is jointly owned by the International Boundary and Water
Commission, U.S. Section (60.06%) and the City of San Diego (39.94%). The capacity of the City's
portion of the outfall as of the date of this Agreement is 74 MGD average dry weather flow, of which
the Metro System has a capacity right to 69.2 MGD and the City as an exclusive right to 4.8 MGD
2 Gravity pipeline connection between NCWRP and the North Metro Interceptor
3Included separately from rest of treatment plant to acknowledge role in sludge treatment process.
EXHIBIT A
METRO FACILITIES AS OF 10/23/2025
TREATMENT FACILITIES
Point Loma Facilities (PLWWTP)
•Advanced Primary Treatment Plant
•Ocean Outfall
•Access Road
•Power Generation Facility
North City
•Water Reclamation Plant (NCWRP)
South Bay
•Water Reclamation Plant (SBWRP)
•South Bay Land/Ocean Outfall1
SLUDGE TREATMENT CONVEYANCE FACILITIES
•Metro Biosolids Center (MBC)
•Point Loma Digesters3
•Digested Sludge Pipeline: Point Loma to MBC
•Raw sludge pipeline: NCWRP to MBC
•Centrate Pipeline: MBC to NCWRP
•Raw sludge pipeline: SBWRP to South Metro Interceptor
CONVEYANCE
•Pump Station 1
•Pump Station 1 Force Main
•Pump Station 2
1 The South Bay Land/Ocean Outfall is jointly owned by the International Boundary and Water
Commission, U.S. Section (60.06%) and the City of San Diego (39.94%). The capacity of the City's
portion of the outfall as of the date of this Agreement is 74 MGD average dry weather flow, of which
the Metro System has a capacity right to 69.2 MGD and the City as an exclusive right to 4.8 MGD
2 Gravity pipeline connection between NCWRP and the North Metro Interceptor
3Included separately from rest of treatment plant to acknowledge role in sludge treatment process.
• Pump Station 2 Force Mains
• Pump Station 2 Backup Power Generation Facility
• South Metro Interceptor
• North Metro Interceptor
• Grove Avenue Pump Station
• Grove Avenue Pump Station Force Main
• Rose Canyon Parallel Trunk Sewer 2
• Second Rose Canyon Trunk Sewer 2
• East Mission Bay Trunk Sewer 2
• Morena Blvd. Interceptor 2
• Metro System Meters (including 88 billing meters and 14 operational meters)
• North City Tunnel Connector
• West Point Loma Interceptor
OTHER FACILITIES
• Environmental Monitoring and Technical Services Laboratory (95% Metro
Ownership)
• Metro Operation Center aka MOC (17% Metro Ownership)
• Dairy Mart Road & Bridge
FUTURE METRO FACILITIES
Phase 1 Pure Water (Under Construction – Percent ownership will be assigned after audit)
• Expand NCWRP
• Morena Pump Station
• Morena Pump Station Force Main
• Centrate/RSDP Line (From NCWRP to North Metro Interceptor)
• East Mission Gorge / East County residuals line (Water, Muni, and Metro
combined assets)
1 The South Bay Land/Ocean Outfall is jointly owned by the International Boundary and Water
Commission, U.S. Section (60.06%) and the City of San Diego (39.94%). The capacity of the City's
portion of the outfall as of the date of this Agreement is 74 MGD average dry weather flow, of which
the Metro System has a capacity right to 69.2 MGD and the City as an exclusive right to 4.8 MGD
2 Gravity pipeline connection between NCWRP and the North Metro Interceptor
3Included separately from rest of treatment plant to acknowledge role in sludge treatment process.
Phase 2 Pure Water Planned
•Phase 2 Pure Water (TBD)
•Phase 2 Pure Water Centrate Line (TBD)
Reserved Rights- Other Future Facilities
The facilities listed in this category will potentially be required as part of the Metro System for
hydraulic capacity, good engineering practices and/or compliance with applicable law, rules or
regulations, including compliance with OPRA, and continuation and maintaining the City’s
Waiver of applicable treatment standards at the Point Loma Wastewater Treatment Plant
(“Waiver”).
•South Bay Secondary Treatment Plant (21-28 MGD)
•South Bay Secondary Sewers & Pump Station (Sweetwater River)
•South Bay Sludge Processing Facility
•Wet Weather Storage Facilities
Exhibit B
Distribution of Wastewater System Capacity Rights
1 2 3 4 5 6 7
Average Flow2,
MGD
Incremental
Peak Flow3,
MGD
RSPD4, MGD
Total Allowable
Flow3,
MGD
TSS2,
1,000 lbs.
COD2,
1,000 lbs.Pure Water Phase 15
18.33 19.52 0 37.85 22,082 38,419 11.699%
1.90 3.03 0 4.93 2,089 3,336 1.152%
0.00 0.30 0 0.30 0 0 0.020%
1.79 3.48 0 5.27 1,915 3,336 1.096%
1.29 19.93 0.602 21.82 2,196 3,052 0.497%
2.47 4.48 0 6.95 2,045 3,844 1.411%
5.29 23.90 0 29.19 4,668 9,636 2.823%
0.07 1.67 0.310 2.05 238 293 0.153%
2.40 4.51 0 6.91 2,289 4,387 1.395%
4.65 3.07 0 7.72 4,562 9,161 2.852%
0.38 0.57 0 0.95 984 835 0.457%
0.44 6.54 0.364 7.34 632 890 0.444%
3.10 8.80 0 11.90 3,113 5,073 1.869%
5.74 5.05 0 10.79 6,039 10,597 3.765%
0.02 1.08 0.080 1.18 65 80 0.044%
47.9 105.9 1.356 155.1 52,916 92,938 29.677%
124.05 136.16 0 260.21 130,032 252,818 70.323%
0 0 14.3 0.00 0 0 0
124.1 136.2 14.3 260.2 130,032 252,818 70.323%
-82 -82 ---
171.9 324.1 15.7 497.4 182,948 345,756 100%
2. Based on monthly average flow and strength.
3. Based on hourly average flow.
ANNUAL FIXED CAPACITY RIGHTS1
DISTRIBUTION OF WASTEWATER SYSTEM CAPACITY RIGHTS
Lakeside/Alpine
AGENCY
Chula Vista
Coronado
Del Mar
East Otay Mesa
El Cajon
Imperial Beach
La Mesa
SUBTOTAL
Lemon Grove
National City
Otay
Padre Dam
Poway
Spring Valley
Wintergardens
SUBTOTAL
5. Pure Water Phase 1 Capital Melded Percentages as established in Exhibit G of the "Amended and Restated Regional Wastewater Disposal Agreement
Between the City of San Diego and the Participating Agencies in the Metropolitan Sewerage System" memorialized here only for use in billing Pure Water Phase
1 capital expenses. The following fractions were used to calculate the Melded Percentage (Based on 5 year average and not subject to change except by
agreement of the parties.)
FLOW SS COD
0.482 0.257 0.243
4. Reject Stream from Demineralization Process
1. Currently based on 2050 projected flows and strengths.
EXHIBIT B
Metro I&I
San Diego
Wastewater
Water
TOTAL
7/18/2025
Exhibit C
Administrative Protocol on Allocation of Operating
Reserves and Debt Service Coverage to Participating
Agencies
Exhibit D
Notice Listing
4914-3650-2326
EXHIBIT D
NOTICE LISTING
Maria Kachadoorian City Manager City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91919 Phone: (619) 691 5031 mkachadoorian@chulavista
ca.gov
Tina Friend City Manager City of Coronado 1825 Strand Way Coronado, CA 92113 Phone: (619) 522-7335 cm@coronado.ca.us
Ashley Jones
City Manager City of Del Mar 1050 Camino Del Mar Del Mar, CA 92014 Phone: 755-9313 ext. 25 ajones@delmar.ca.us
Graham Mitchell City Manager City of El Cajon 200 Civic Center Way El Cajon CA 92020
Phone: (619) 441-1716 gmitchell@elcajon.gov
Tyler Foltz
Greg Humora City Manager City of La Mesa 8130 Allison Avenue
La Mesa, CA 91942 Phone: (619) 667-1101 Ghumora@cityoflamesa.us
Lydia Romero City Manager City of Lemon Grove 3232 Main Street Lemon Grove, CA 91945
Phone: (619) 464-6934 sdershem@lemongrove.ca.us
Scott Huth
Acting City Manager City of National City 1243 National City Blvd. National City, CA 91950 Phone: (619) 336-4240 CMO@nationalcityca.gov
Chris Hazeltine City Manager City of Poway 13325 Civic Center Drive
Poway, CA 92064 Phone: (858) 679-4200 chazeltine@poway.org
Mayor Todd Gloria Chief Operating Officer
City of San Diego 202 "C" Street
San Diego, CA 92101 Phone: (619) 236-5949 mayortoddgloria@sandiego.gov
Ebony Shelton Chief Administrative Officer County of San Diego 1600 Pacific Highway, Rm. 209 San Diego, CA 92101 Phone: (619) 531-5250
Cao_mail@sdgounty.ca.gov
Jose Martinez
General Manager
Otay Water District 2554 Sweetwater Springs Blvd.
Spring Valley, CA 91977 Phone: (619) 670-2210 jose.martinez@otaywater.gov
Kyle Swanson CEO/General Manager Padre Dam Municipal Water District
9300 Fanita Pkwy
Santee, CA 92071
Phone: (619) 258-4673 kswanson@padre.org
City Manager
City of Imperial Beach 825 Imperial Beach Blvd. Imperial Beach, CA 91932
Phone: (619) 423-8300 ext. 7 tfoltz@imperialbeachca.gov
Exhibit E
Methodology for Contract Capacity Transfers.
Last Updated: 5/29/2025
EXHIBIT E
METHODOLOGY FOR CONTRACT CAPACITY TRANSFERS
The following exhibit describes the methodology for transferring contract capacities from the
Metro Pooled Capacity (summarized in the table below) to a Party’s contract capacity defined in
Exhibit B.
POOLED CAPACITY
Average Flow,
mgd
Incremental Peak1,
mgd
TSS,
1,000 lbs.
COD,
1,000 lbs.
After Phase 1 Pure Water 0 102 96,820 27,521
After Phase 2 Pure Water 10 20 96,820 27,521
1. At Point Loma WWTP
2. Assume system storage
If a transfer of contract capacity is initiated as set forth in Section 4.4.3.1, capacity will be taken
from the Pooled Capacity and added to the Party in need of additional capacity. Thereafter, the
above table of Pooled Capacity will be updated with the subject column reduced, and Exhibit B
will be updated with the subject Party’s contract capacity correspondingly increased.
In lieu of transferring average flow capacity from the Pooled Capacity to a Party, the Party can
choose to transfer Incremental Peak Flow Capacity to Average Flow Capacity keeping Total
Allowable Flow the same, assuming the Party would still have sufficient Total Allowable Flow
Capacity for their peak flows.
If a transfer of contract capacity as set forth in Section 4.4.3.2, the reverse shall occur and the
subject Party’s contract capacity will be reduced in Exhibit B and the Pooled increased.
In lieu of transferring average flow capacity to the Pooled Capacity from a Party, the Party can
choose to transfer Average Flow Capacity to Incremental Peak Flow Capacity keeping Total
Last Updated: 5/29/2025
Allowable Flow the same, if they anticipate needing their current Total Allowable Flow for their
peak flows.
The remainder of this Exhibit has examples of how these transfers would be performed and the
estimated effect on a Party’s share of Metro System Costs under the FAB Billing System. Please
note Metro System costs will change from time to time as well as Contract Capacities per Exhibit
B, so the following are only examples and not meant to be exact. These examples are based on
Exhibit B as of the signing of this agreement, not necessarily the last revision of this exhibit. These
examples are currently based on FY24 unaudited costs and estimated FY27 billing units.
EXHIBIT F –
METRO SYSTEM FLOW FORMULAS AND
SAMPLING LOCATIONS
JULY 2025
LEGEND
Billing and Sampling Meters
Billing Meters
Municipal Meter
CHULA VISTA
Hollister & Main
Meter CV1
“J” ST
Meter CV2
“G” ST
Meter CV3
Autopark&
Crossings
(0.025 mgd)
Waterpark & Amphitheater
(0.031 mgd)
Lagoon Drive
(0.011
mgd)
Bay Blvd North
(106
EDUs)
Bay Blvd South
(16
EDUs)
Gunpowder Point
(51 EDUs)
Acacia
Ave
SV to CV
(4 EDUs)
Combined Housecounts
(1,040
EDUs)
E. Flower Street
Meter CV5
Plaza Bonita-1
Meter CV6M
Plaza Bonita-2
Meter CV7M
Las Flores Dr
Meter CV8
N. Fifth Ave
Meter CV9
Acacia
Ave
Meter
CV10
Otay
Lakes Road
Meter
CV11
Proctor
Valley
Meter
CV12
Main
Street
Meter
CV14
CHULA
VISTA
TOTAL
CORONADO
Trans-Bay
Meter C1M
Amphibious
Base
Meter C2
North Island
Meter C3
CORONADO TOTAL
DEL MAR
Meter DM2
Riviera Del
Mar
(110 EDUs)
Connection
#1
(96 EDUs)
Connection
#2
(21 EDUs)
Del Mar
Estates
(27 EDUs)
DEL MAR
TOTAL
EAST OTAY MESA
EOM1 Meter East Otay Mesa
(55.4 EDUs)
EAST OTAY
MESA TOTAL
EL CAJON
El Cajon Meter
EC1B
To LM Meter
LM4
To LM
(321.5 EDUs)
Winter Gardens
Meter WG1M
Winter Gardens
(1,383 EDUs)
EL CAJON
TOTAL
IMPERIAL BEACH
9th & Imp.
Meter IB1
Elder St.
Meter IB2M
Palm Ave.
Meter IB3M2
Georgia Street
(170.5 EDUs)
Palm Avenue
(29.5 EDUs)
IMPERIAL BEACH
TOTAL
LA MESA
La Mesa
North
LM3 Meter
Colorado
(16
EDUs)
73rd &
Sar.
(22 EDUs)
Alvarado TrtmntPlant
(61 EDUs)
Alvarado
Lab
(27 EDUs)
Alvarado Training Ctr.
(2 EDUs)
Blue Lake
(69
EDUs)
East Lake
(349
EDUs)
Jackson
(279
EDUs)
Keeny
(28 EDUs)
Lake Arago
(292.7
EDUs)
Lake Murray
(119.8
EDUs)
La Mesa South
LM1AM
Meter
LM7
Meter
68th & Univ
(91
EDUs)
67th &
Valencia
(158.5
EDUs)
Rosefield
(20
EDUs)
Alamo
(4 EDUs)
Vigo
(204
EDUs)
69th & University
(34 EDUs)
70th & Colony
(551.5 EDUs)
73rd & El
Cajon
(15.6
EDUs)
To SV
(52 EDUs)
To SV
LM2 Meter
To SV
LM5A Meter
To SV
LM8
Meter
To LG
(921.7
EDUs)
From EC LM4
Meter
From EC
(311
EDUs)
LA MESA
TOTAL
LAKESIDE/ALPINE
Meter
LS2
LAKESIDE
ALPINE
TOTAL
LEMON GROVE
Winnett &
Oriole St
LG1M
Meter
Akins &
69th
LG2M
Meter
Imperial &
Viewcrest
LG4
Meter
Total
Lemon Grove to
SV
(1547.63
EDUs)
Net from
La Mesa
(921.7
EDUs)
69th &
Madera
LG3
Meter
Madera
(4 EDUs)
Calvacado
(121 EDUs)
69th &
Klauber
(3 EDUs)
Gold Lake
(48 EDUs)
Angelus
Avenue
(12 EDUs)
69th &
Evelyn
(4 EDUs)
College
Avenue
(498.6 EDUs)
Navy
Housing
(278 EDUs)
College
Grove
(25.6 EDUs)
69th &
Gibson
(3 EDUs)
College
Grove Way
(161 EDUs)
LEMON
GROVE
TOTAL
NATIONAL CITY
33rd St
NC2
Meter
21st & Hoover
NC3A
Meter
2262 Hoover
NC3B
Meter
West of I5
NC3C
Meter
22nd &
Hoover
NC Yard
& HC
(2 EDUs)
7th & Wilson
NC5
Meter
Nordica
NC7M Meter
Stockman
NC15
Meter
Southland
Ind. Park
(76.5 EDUs)
Rachael Ave.
North
(46
EDUs)
Olive
Avenue
(6 EDUs)
Bonita
Paradise
(47 EDUs)
Rachel
Ave. South
(43 EDUs)
NC to SV Inter-Agency Compromise
(36 EDUs)
Plaza Bonita
NC8M
Meter
Sweetwater Road
(52.72%)
NC13 Meter
Prospect
St (39.16%)
NC16 Meter)
SV to NC I-A Compromise
(144 EDUs)
Harbor Drive
NC6
Meter
Delta St.
NC9M
Meter
Paradise Val
NC10
Meter
Olive Ave.
NC11
Meter
18th & Rachael
NC12
Meter
Dalbergia
(26.3 EDUs)
Nordica
(36
EDUs)
Bryanview
(16 EDUs)
Lorenz
(42
EDUs)
Mariposa
(18
EDUs)
Ebbs
(291
EDUs)
Delta St
(100.5
EDUs)
Navy
Sports
Center
(7 EDUs)
NATIONAL
CITY
TOTAL
NAVY
Amphibious Base
Meter (C2)
North Island
Meter (C3)NAVY TOTAL
OTAY
Otay Net OTAY
TOTAL
PADRE DAM
Padre Dam
Meter PD1B
Lakeside
Meter LS2
Simeon Dr.
(413 EDUs)
Padre Dam
Meter PD2
Cowles Mtn.
(270 EDUs)
Treviso
(186 EDUs)
PADRE DAM
TOTAL
POWAY
Springhurst
PO2
Meter
La
Manda
(53
EDUs)
Camino
Del Norte
PO1
Meter
Holland
Canyon
PO3M
Meter
Eastview
Ct.
PO4
Meter
Highland
Ranch
PO5
Meter
Creek
Road
PO6
Meter
SpringhurstStreet
(72 EDUs)
Stone
Canyon
(727.14
EDUs)
POWAY
TOTAL
SPRING VALLEY
SubTotal Chula Vista to SV = Combined Housecounts – Acacia Ave + CV5 + CV6 + CV7M + CV8 + CV9 + CV10 + CV11 + CV12
+ CV14
Brisbane
& 5th
SV8M
Meter
Lincoln Acres/Alta
Drive
(84.4
EDUs)
Sweetwater
(52.72%)
NC13 Meter
Prospect St
(39.16%)
NC16
Meter
SV to NC Inter-Agency
Compromise
(144 EDUs)
NC to SV Inter-Agency
Compromise
(36 EDUs)
From
NC
NC8M
Meter
SubTotalChula
Vista to
SV
To SV
LM2 Meter
To SV
LM5A Meter
To SV
LM8 Meter
SubTotalLa Mesa to SV
(52 EDUs)
SubTotalLemon
Grove to SV
(1,547.63 EDUs)
Bonita
BO1 Meter
Manzana
Way
(439 EDUs)
Parkbrook
Street
(197
EDUs)
Noeline
Avenue
(109 EDUs)
Worthington Street
(64 EDUs)
Innsdale
Avenue
(51
EDUs)
Greenridge Avenue
(10 EDUs)
Ellenwood Circle
North
(9 EDUs)
Delrose
Avenue
(109
EDUs)
Crestmore
Avenue
(8 EDUs)
Potrero
Street
(61
EDUs)
Carlsbad
Street
(41
EDUs)
Otay Net
SPRING
VALLEY
TOTAL
WINTER GARDENS
Winter Gardens
Meter (WG1M)
WG House Count
1,383 EDUs
WINTER
GARDENS
TOTAL
CITY OF SAN DIEGO
SD33 Meter
N. Harbor
Drive
(2,550.4
EDUs)
SD1E Meter SD2A Meter SD2B Meter
Sports
Area Blvd.
(498
EDUs)
SD3
Meter
Barnett Avenue
(2551.6 EDUs)
SD5M
Meter
SD20
Meter
SD40M2
Meter
SD42M
Meter
SD7B Meter SD8 Meter
Commercial
Street
(1,458.6 EDUs)
SD12 Meter SD6M Meter Del Mar Net
Poway
Net
SD1B
Meter
EC1B
Meter
Padre
Dam Net
Lakeside
Net
LM
North to
San
Diego Net
SD19
Meter
Anna
Street
(564
EDUs)
SD7A
Meter
SD7C
Meter
Coronado
Net
Beach
Street
(1,944.2
EDUs)
SD9
Meter
LG to
San
Diego Net
LM South to
San
Diego
Net)
SD9D
Meter
NC7M
Meter
NC9M
Meter
CITY OF SAN DIEGO (Continued)
NC10 Meter NC11 Meter
Olive Ave.
(6
EDUs)
NC12 Meter
Rachael Ave.
North
(46
EDUs)
NC6 Meter
San Diego
HC Through
NC Total
BO1
Meter
NC15
Meter
Bonita Paradise
(47
EDUs)
Rachael
Ave.
South
(43 EDUs)
Alta
Drive
(84.4 EDUs)
San Diego HC
Through
SPV Total
SD10 Meter
Waterpark & Amphitheater Autopark & Crossings
PC1
Meter
IB2M Meter
Georgia Street
(170.5
EDUs)
Palm Avenue
(29.5
EDUs)
IB3M2 Meter SB1 Meter
SD11
Meter
SD11A
Meter
SD18
Meter
Small SD
House Count
(694.3 EDUs)
Elm Street
(1,455
EDUs)
USN4
Meter
USN5
Meter
USN8
Meter
USN11
Meter
SAN
DIEGO
TOTAL
Exhibit G
Sample of the Interest Calculation
Exhibit G - Sample of the Interest Calculation (Section 6.6)
Purpose: To document assumptions used to account for the time value of money for shared Pure Water costs (Allocated Shared Costs) that were agreed to be reconciled at a later date based on final Phase 1 project costs.
This is discussed in Section 6.6: Reallocation of PWP Costs incurred since FY2014 and cited in Section 6.6.1.3. See the example" Calculator Spreadsheet" below and accompanying footnotes.
.
C D E F G H I J K L M
50/ 50 Expenses from
That Year
Original
Metro Split
%
Original Water
Split %
Original
Metro Share
Original
Water Share
Metro Post
Allocation
Share
Amounts Subject
to Interest
(50% Cost - Metro
Share%)
Running Metro
Balance Subject to
Interest
(New Activity + Prior
Year Balance + Prior
Interest Earning)
Yearly Interest
Earnings
(Compounded
Monthly)
Estimated PA
share
( Average share of
Interest Earnings)
Annual Interest
Rate
(San Diego City
Treasurers)
FY 2014 $630,109 50%50%$315,055 $315,055 $283,549 $31,505 $31,505.46 $138.27 $41.48 0.438%
FY 2015 $2,476,617 50%50%$1,238,309 $1,238,309 $1,114,478 $123,831 $155,474.59 $871.33 $261.40 0.559%
FY 2016 $4,503,182 50%50%$2,251,591 $2,251,591 $2,026,432 $225,159 $381,505.03 $2,971.03 $891.31 0.776%
FY 2017 $7,398,893 50%50%$3,699,447 $3,699,447 $3,329,502 $369,945 $754,420.72 $8,150.10 $2,445.03 1.075%
FY 2018 $6,194,711 50%50%$3,097,355 $3,097,355 $2,787,620 $309,736 $1,072,306.36 $14,783.19 $4,434.96 1.370%
FY 2019 $7,844,738 50%50%$3,922,369 $3,922,369 $3,530,132 $392,237 $1,479,326.46 $31,230.90 $9,369.27 2.091%
FY 2020 $8,018,735 50%50%$4,009,367 $4,009,367 $3,608,431 $400,937 $1,911,494.09 $43,708.61 $13,112.58 2.263%
FY 2021 50%50%$0 $0 $0 $0 $1,955,202.70 $29,649.45 $8,894.84 1.506%
FY 2022 50%50%$1,984,852.16 $16,257.11 $4,877.13 0.816%
FY 2023 32%68%$2,001,109.26 $35,993.15 $10,797.94 1.784%
FY 2024 32%68%$2,037,102.41 $59,323.71 $17,797.11 2.874%
FY 2025 32%68%TBD
FY 2026 32%68%TBD
FY 2027 32%68%TBD
Totals $37,066,985 $18,533,493 $18,533,493 $16,680,143 $1,853,349 $13,764,299 $243,077 $72,923 N/A
Pending Final Audits:
Estimated Final Metro % of Pure Water Costs (Draft)45%
Estimated JPA % Share of Metro Expenses (Draft)30%
Exhibit G - Sample of the Interest Calculation (Section 6.6) (Continued)
Procedures and Assumptions:
The City proposes the following procedures be used to allocate these costs. These costs will be allocated 1 year after substantial completion of Pure Water Phase 1, as part of the annual Audit of Metro costs
(Projected to be annual audit of metro activity for Fiscal Year 2026). The City will prepare a yearly update to the calculator as part of the preparation for the yearly metro audit.
Column Description:
Cost Included (Column C)This column represents cost subject to this calculator. This includes Purchase Orders (and their associated expenditures) that have been split 50%/50% (50/50 POs)
from 2014 to 2022 and have been included as part of each yearly audit of Metro JPA Pure Water costs. This sheet is prepared by the City and reviewed by the JPA's consultants
on a yearly basis to determine samples for the Pure Water O&M costs. After awarding of all Pure Water construction contracts, new costs will use an updated percentage based on
actual awarded construction contracts. This date will be called out on the purchase order sheet and a new line on the calculator will be added to track the change in percent allocation.
Open purchase orders using the 50/50 split will be separated on the calculator sheet until they are fully spent, closed or amended to the new split.
Original Splits % (Column D & E)These columns split the total costs of the 50/50 POs based on their original share between the water and Metro funds. This establishes each funds initial share of the costs
Original Share (Column F & G)These columns split the total costs in Column C by the percentages in Columns D and E.
Metro Post Allocation Share(Column H)This column uses Metro funds final share of Phase 1 costs, as a percentage of total project costs, and applies it to costs included in Column C. This represents the actual share
of costs based on the final allocation costs.
Amounts Subject to Interest (Column I)This column takes the difference between the initial splits for Metro (Column F) and the Metro post allocation share (Column H). These are the new expenditures from that
fiscal year subject to the interest calculation.
Running Metro Balance Subject to This column takes any prior year balance in Column J, the prior year accrued interest in Column K and adds the new expenditures from Column I. This is the total balanced
Interest (Column J)used to calculate each year's interest owed.
Yearly Interest Earnings (Column K)This column takes the annual interest earnings shown in Column M and assumed monthly compounding of Metro balance in Column J. Compounding period is consistent with
the City's monthly interest earnings paid on City funds.
Estimated PA share (Column L)This column estimates the portion of interest earnings that is expected to be credited to the Participating Agencies. Individual Agencies will be credited during the audit following
one year after the substantial completion of Pure Water Phase 1. Agencies will be credited at weighted average of costs from 2014 to one year after substantial completion of Phase 1,
based on the PA's individual annual percent share of Metro costs.
Annual Interest Rate (Column M)This column shows the annual percent returns on funds invested by the City Treasurer. This is based on the Treasurers annual return on investments as invested under the City's
investment policy. This is the rate used to calculate yearly interest owed.
Notes This calculator was designed to account for the time value of money related to (50/50 POs). If additional Phase 1item (CIP expenses, Revenue, etc.) need to account for the
time value of money, the assumptions used in Columns I-K will remaining consistent in those calculations. Columns C through H and the associated percentages used will be adapted
to fit the types of costs being allocated.
Exhibit H
Summary of Billings from County Water Authority
Showing Costs for Untreated Water
Fixed Charges Total ($)
CWA Customer Service Charge $ 933,611.00
CWA Emergency Storage Charge $ 2,197,725.00
CWA Infrastructure Access Charge $ 1,760,089.00
CWA Supply Reliability Charge $ 1,504,825.00
Supply Charges Volume (AF)Rate ($/AF)Total ($)
CWA Forced Delivery - Untreated 231.3 $ 1,200.00 $ 277,560.00
CWA Regular Meter Delivery - Treated 2,069.2 $ 1,600.00 $ 3,310,720.00
CWA Regular Meter Delivery - Untreated 12,973.7 $ 1,200.00 $ 15,568,440.00
Subtotal 15,274.2 $ 19,156,720.00
CYTD Volume (AF)
46,134.1
17,627.4
129,500.4
193,261.9
Net Deliveries Current Month Volume (AF)Adjustment Volume
(AF)CYTD Volume (AF)
Tier 1 Total Treated Water Delivered 2,081.1 17,964.3
Tier 1 Total Untreated Water Delivered 7,970.5 96,706.3
Tier 1 Usage 10,051.6 114,670.6
Water Exchanges Volume (AF)Rate($/AF)Total ($)
CWA Total To Other Agencies Untreated Water (5,285.0)$ 1,200.00 ($ 6,342,000.00)
CWA Total From Other Agencies Treated Water 11.9 $ 1,600.00 $ 19,040.00
CWA Total From Other Agencies Untreated Water 50.5 $ 1,200.00 $ 60,600.00
Subtotal (5,222.6)($ 6,262,360.00)
CYTD Volume (AF)
(79,483.9)
336.9
473.1
(78,673.9)
Subtotal 10,051.6 $ 1,899,752.40
Generated Date: 01/10/2025 11:21 AM
19-6364
A Public Agency
4677 Overland Avenue, San Diego, California, 92123-1233
(858) 522-6673 FAX (858) 522-6561
December 2024
Invoice Summary
Billed to:
San Diego, City of
Mailed: 1/10/2025 Due Date: 2/14/2025
Invoice Number: 1224-15 Page 1 of 8
Service Address:
2797 Caminito Chollas
San Diego, CA 92105-
Sample Bill from the County Water Authority for all city of San Diego Water purchases for the month of December 2024 to provide clarity for any sewer only providers. Additional documentation will be provided at a later date walking from this bill to the purified water calculation
Fixed Charges Total ($)
MWD Capacity Reservation Charge $ 287,980.00
MWD Readiness-to-Serve Charge $ 406,779.00
Subtotal $ 7,091,009.00
Current Balance $ 21,885,121.40
Previous Balance $ 17,919,593.50
Total Due And Payable $ 39,804,714.90
REMIT TO:
SAN DIEGO COUNTY WATER AUTHORITY
4677 Overland Avenue
San Diego, CA 92123-1233
Payment is due on the last business day of the month and shall be delinquent if not received in investable funds by 2 p.m. of the tenth business day of the following
month.
Delinquency charges are 1% of the total amount if paid within five business days of the delinquency, 2% thereafter. Reference San Diego County Water Authority
Ordinance No. 2007-03 Revenue Collection Policy for a complete explanation of billing and payment for water deliveries.
Generated Date: 01/10/2025 11:21 AM
19-6364
A Public Agency
4677 Overland Avenue, San Diego, California, 92123-1233
(858) 522-6673 FAX (858) 522-6561
December 2024
Invoice Summary
Billed to:
San Diego, City of
Mailed: 1/10/2025 Due Date: 2/14/2025
Invoice Number: 1224-15 Page 2 of 8
Service Address:
2797 Caminito Chollas
San Diego, CA 92105-
Variable Charges Volume (AF)Rate($/AF)Total ($)
Transportation Charge - Meter Delivery 15,274.2 $ 189.00 $ 2,886,823.80
Transportation Charge - Water Exchange (5,222.6)$ 189.00 ($ 987,071.40)
Variable Charges Volume (AF)Rate($/AF)Total ($)
Transportation Charge - Meter Delivery 15,274.2 $ 189.00 $ 2,886,823.80
Transportation Charge - Water Exchange (5,222.6)$ 189.00 ($ 987,071.40)
Supply Charges
CWA
Forced Delivery - Untreated
Meter No Begin Read End Read 1000 CU. FT.AC. FT.Rate($/AF)Dollars($)
Over Weir,WEIR 248,532 248,761 228 5.2 $ 1,200.00 $ 6,240.00
San Diego,02 2,012,753 2,022,602 9,849 226.1 $ 1,200.00 $ 271,320.00
Untreated Water Subtotal 231.3 $ 277,560.00
Regular Meter Delivery - Treated
Meter No Begin Read End Read 1000 CU. FT.AC. FT.Rate($/AF)Dollars($)
San Diego, 27 197,491 210,099 12,609 289.5 $ 1,600.00 $ 463,200.00
San Diego, 30 3,079 3,080 2 0.0 $ 1,600.00 $ 0.00
San Diego,10 3,300,807 3,316,240 15,433 354.3 $ 1,600.00 $ 566,880.00
San Diego,11 11,413,060 11,461,025 47,966 1,101.1 $ 1,600.00 $ 1,761,760.00
San Diego,14 5,034,606 5,046,789 12,183 279.7 $ 1,600.00 $ 447,520.00
San Diego,15 3,837,922 3,839,738 1,816 41.7 $ 1,600.00 $ 66,720.00
SD 18/21 Bypass,
18/21 B/P 7,490 7,616 127 2.9 $ 1,600.00 $ 4,640.00
Treated Water Subtotal 2,069.2 $ 3,310,720.00
Regular Meter Delivery - Untreated
Meter No Begin Read End Read 1000 CU. FT.AC. FT.Rate($/AF)Dollars($)
Generated Date: 01/10/2025 11:21 AM
19-6364
A Public Agency
4677 Overland Avenue, San Diego, California, 92123-1233
(858) 522-6673 FAX (858) 522-6561
December 2024
Invoice Detail
Billed to:
San Diego, City of
Mailed: 1/10/2025 Due Date: 2/14/2025
Invoice Number: 1224-15 Page 3 of 8
Service Address:
2797 Caminito Chollas
San Diego, CA 92105-
Water Exchanges
CWA
To Other Agencies Untreated Water
Exchange Location To Agency AC. FT.Rate($/AF)Dollars($)Comments
DCFSV66 San Diego County Water Authority (4,974.8)$ 1,200.00 ($ 5,969,760.00)credit for no purchase
Del Mar (NA)Del Mar, City of (78.9)$ 1,200.00 ($ 94,680.00)
San Vicente Acct San Diego County Water Authority (231.3)$ 1,200.00 ($ 277,560.00)
To Other Agencies Untreated Water Subtotal (5,285.0)($ 6,342,000.00)
Supply Charges
CWA
Leakage (SD-1),01 0 31 540 12.4 $ 1,200.00 $ 14,880.00
San Diego, 28 7,377,561 7,443,701 66,141 1,518.4 $ 1,200.00 $ 1,822,080.00
San Diego, DCFSV66 1,434,378 1,651,079 216,701 4,974.8 $ 1,200.00 $ 5,969,760.00
San Diego,05A 9,627,449 9,733,405 105,956 2,432.4 $ 1,200.00 $ 2,918,880.00
San Diego,05B 8,808,476 8,932,713 124,237 2,852.1 $ 1,200.00 $ 3,422,520.00
San Diego,05C 1,405,570 1,428,831 23,261 534.0 $ 1,200.00 $ 640,800.00
San Diego,06A 2,967,595 2,969,351 1,756 40.3 $ 1,200.00 $ 48,360.00
San Diego,06B WEIR 1,591,412 1,591,432 20 0.5 $ 1,200.00 $ 600.00
San Diego,20 11,002,113 11,028,633 26,520 608.8 $ 1,200.00 $ 730,560.00
Untreated Water Subtotal 12,973.7 $ 15,568,440.00
Supply Charges Subtotal 15,274.2 $ 19,156,720.00
Supply Charges Total 15,274.2 $ 19,156,720.00
Generated Date: 01/10/2025 11:21 AM
19-6364
A Public Agency
4677 Overland Avenue, San Diego, California, 92123-1233
(858) 522-6673 FAX (858) 522-6561
December 2024
Invoice Detail
Billed to:
San Diego, City of
Mailed: 1/10/2025 Due Date: 2/14/2025
Invoice Number: 1224-15 Page 4 of 8
Service Address:
2797 Caminito Chollas
San Diego, CA 92105-
Variable Charges
Transportation Charge - Meter Delivery
Meter No./Location AC. FT.Rate($/AF)Dollars($)Comments
Leakage (SD-1),01 12.4 $ 189.00 $ 2,343.60
Over Weir,WEIR 5.2 $ 189.00 $ 982.80
San Diego, 27 289.5 $ 189.00 $ 54,715.50
San Diego, 28 1,518.4 $ 189.00 $ 286,977.60
San Diego, 30 0.0 $ 189.00 $ 0.00
San Diego, DCFSV66 4,974.8 $ 189.00 $ 940,237.20
Water Exchanges
CWA
From Other Agencies Treated Water
Exchange Location From Agency AC. FT.Rate($/AF)Dollars($)Comments
El Camino Real Santa Fe I.D.1.0 $ 1,600.00 $ 1,600.00
Highland Ct.Santa Fe I.D.0.2 $ 1,600.00 $ 320.00
Otay TP Otay W.D.10.7 $ 1,600.00 $ 17,120.00
From Other Agencies Treated Water Subtotal 11.9 $ 19,040.00
From Other Agencies Untreated Water
Exchange Location From Agency AC. FT.Rate($/AF)Dollars($)Comments
Fletcher Well Helix W.D.50.5 $ 1,200.00 $ 60,600.00
From Other Agencies Untreated Water Subtotal 50.5 $ 60,600.00
Water Exchanges Subtotal (5,222.6)($ 6,262,360.00)
Water Exchanges Total (5,222.6)($ 6,262,360.00)
Generated Date: 01/10/2025 11:21 AM
19-6364
A Public Agency
4677 Overland Avenue, San Diego, California, 92123-1233
(858) 522-6673 FAX (858) 522-6561
December 2024
Invoice Detail
Billed to:
San Diego, City of
Mailed: 1/10/2025 Due Date: 2/14/2025
Invoice Number: 1224-15 Page 5 of 8
Service Address:
2797 Caminito Chollas
San Diego, CA 92105-
Variable Charges
San Diego,02 226.1 $ 189.00 $ 42,732.90
San Diego,05A 2,432.4 $ 189.00 $ 459,723.60
San Diego,05B 2,852.1 $ 189.00 $ 539,046.90
San Diego,05C 534.0 $ 189.00 $ 100,926.00
San Diego,06A 40.3 $ 189.00 $ 7,616.70
San Diego,06B WEIR 0.5 $ 189.00 $ 94.50
San Diego,10 354.3 $ 189.00 $ 66,962.70
San Diego,11 1,101.1 $ 189.00 $ 208,107.90
San Diego,14 279.7 $ 189.00 $ 52,863.30
San Diego,15 41.7 $ 189.00 $ 7,881.30
San Diego,20 608.8 $ 189.00 $ 115,063.20
SD 18/21 Bypass, 18/21 B/P 2.9 $ 189.00 $ 548.10
Transportation Charge - Meter Delivery Subtotal 15,274.2 $ 2,886,823.80
Transportation Charge - Water Exchange
Meter No./Location AC. FT.Rate($/AF)Dollars($)Comments
DCFSV66 (4,974.8)$ 189.00 ($ 940,237.20)credit for no purchase
Del Mar (NA)(78.9)$ 189.00 ($ 14,912.10)
El Camino Real 1.0 $ 189.00 $ 189.00
Fletcher Well 50.5 $ 189.00 $ 9,544.50
Highland Ct.0.2 $ 189.00 $ 37.80
Otay TP 10.7 $ 189.00 $ 2,022.30
San Vicente Acct (231.3)$ 189.00 ($ 43,715.70)
Transportation Charge - Water Exchange Subtotal (5,222.6)($ 987,071.40)
Generated Date: 01/10/2025 11:21 AM
19-6364
A Public Agency
4677 Overland Avenue, San Diego, California, 92123-1233
(858) 522-6673 FAX (858) 522-6561
December 2024
Invoice Detail
Billed to:
San Diego, City of
Mailed: 1/10/2025 Due Date: 2/14/2025
Invoice Number: 1224-15 Page 6 of 8
Service Address:
2797 Caminito Chollas
San Diego, CA 92105-
Fixed Charges
CWA
Customer Service Charge Annual ($)Monthly ($)
Annual Customer Service Charge for Calendar Year 2024 $ 11,203,332.00
Customer Service Charge December $ 933,611.00
Emergency Storage Charge Annual ($)Monthly ($)
Annual Emergency Storage Charge for Calendar Year 2024 $ 26,372,700.00
Emergency Storage Charge December $ 2,197,725.00
Infrastructure Access Charge Annual ($)Monthly ($)
Annual Infrastructure Access Charge for Calendar Year 2024 $ 21,121,068.00
Infrastructure Access Charge December $ 1,760,089.00
Supply Reliability Charge Annual ($)Monthly ($)
Annual Supply Reliability Charge for Calendar Year 2024 $ 18,057,900.00
Supply Reliability Charge December $ 1,504,825.00
MWD
Capacity Reservation Charge Annual ($)Monthly ($)
Annual Capacity Reservation Charge for Calendar Year 2024 $ 3,455,760.00
Capacity Reservation Charge December $ 287,980.00
Readiness-to-Serve Charge Annual ($)Monthly ($)
Annual Readiness-to-Serve Charge for Fiscal Year 2025 $ 4,881,348.00
Readiness-to-Serve Charge December $ 406,779.00
Fixed Charges Subtotal $ 7,091,009.00
Current Balance $ 21,885,121.40
Previous Balance $ 17,919,593.50
Total Due And Payable $ 39,804,714.90
Variable Charges Subtotal 10,051.6 $ 1,899,752.40
Variable Charges Total 10,051.6 $ 1,899,752.40
Generated Date: 01/10/2025 11:21 AM
19-6364
A Public Agency
4677 Overland Avenue, San Diego, California, 92123-1233
(858) 522-6673 FAX (858) 522-6561
December 2024
Invoice Detail
Billed to:
San Diego, City of
Mailed: 1/10/2025 Due Date: 2/14/2025
Invoice Number: 1224-15 Page 7 of 8
Service Address:
2797 Caminito Chollas
San Diego, CA 92105-
REMIT TO:
SAN DIEGO COUNTY WATER AUTHORITY
4677 Overland Avenue
San Diego, CA 92123-1233
Payment is due on the last business day of the month and shall be delinquent if not received in investable funds by 2 p.m. of the tenth business day of the following month.
Delinquency charges are 1% of the total amount if paid within five business days of the delinquency, 2% thereafter. Reference San Diego County Water Authority Ordinance
No. 2007-03 Revenue Collection Policy for a complete explanation of billing and payment for water deliveries.
Generated Date: 01/10/2025 11:21 AM
19-6364
A Public Agency
4677 Overland Avenue, San Diego, California, 92123-1233
(858) 522-6673 FAX (858) 522-6561
December 2024
Invoice Detail
Billed to:
San Diego, City of
Mailed: 1/10/2025 Due Date: 2/14/2025
Invoice Number: 1224-15 Page 8 of 8
Service Address:
2797 Caminito Chollas
San Diego, CA 92105-
- 1 -
10-23-25
4932-9907-9020
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
ATTACHMENT F
- 2 -
10-23-25
4932-9907-9020
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
- 3 -
10-23-25
4932-9907-9020
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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(m) Notices required or permitted hereunder shall be provided in the manner set forth
in the SARA.
(n) The individuals executing this Administrative Agreement represent and warrant
that they have the legal capacity and authority to do so on behalf of their respective legal entities.
(o) The term of this Administrative Agreement shall run concurrently with and remain
in effect in accordance with the provisions of Section 15 of the SARA.
IN WITNESS WHEREOF, the Parties have executed this Administrative Agreement
effective as of the date first set forth above.
CITY OF CHULA VISTA
Name:
Title:
Approved as to Form:
Name:
Title:
CITY OF CORONADO
Name:
Title:
Approved as to Form:
Name:
Title:
CITY OF DEL MAR
Name:
Title:
Approved as to Form:
Name:
Title:
CITY OF EL CAJON
Name:
Title:
Approved as to Form:
Name:
Title:
CITY OF IMPERIAL BEACH
Name:
Title:
Approved as to Form:
Name:
Title:
CITY OF LA MESA
Name:
Title:
Approved as to Form:
Name:
Title:
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LEMON GROVE SANITATION
DISTRICT
Name:
Title:
Approved as to Form:
Name:
Title:
CITY OF NATIONAL CITY
Name:
Title:
Approved as to Form:
Name:
Title:
OTAY WATER DISTRICT
Name:
Title:
Approved as to Form:
Name:
Title:
PADRE DAM MUNICIPAL WATER
DISTRICT
Name:
Title:
Approved as to Form:
Name:
Title:
CITY OF POWAY
Name:
Title:
Approved as to Form:
Name:
Title:
CITY OF SAN DIEGO
Name:
Title:
Approved as to Form:
Name:
Title:
SAN DIEGO COUNTY SANITATION
DISTRICT
Name:
Title:
Approved as to Form:
Name:
Title:
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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.
- 16 -
10-23-25
4932-9907-9020
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]
Metro
Wastewater:
Second Amended
& Restated Agr.
(SARA)
Board: February 4,
2026
ATTACHMENT G
How Does Otay Water District Dispose of its
Wastewater?
•The Otay Water District (District) wastewater
collection ultimately flows into the City of San
Diego’s (San Diego) Metropolitan Wastewater
System (Metro System).
•San Diego owns, operates, and maintains a regional
wastewater collection system providing conveyance,
treatment, and discharge.
•The District is one of 12 Participating Agencies (PA)
in the Metro System.
•The parties maintain interagency agreements for the
transportation and disposal of wastewater.
Who is the Metro JPA & Metro Commission?
•The Metro Wastewater Joint Powers Authority (Metro JPA) is acoalition of municipalities and special districts that share in theuse of the Metro System.
•1998 – San Diego and the 12 PAs signed a 50-year RegionalWastewater Disposal Agreement.
•2000 – The PA’s formed the Metro JPA.
PA = Participating Agencies
Otay, Chula Vista, Coronado, Del Mar, El Cajon, IB, La Mesa, Lemon Grove, National City, Padre Dam, Poway, County of San Diego
Why Metro JPA Started Revising the ARA
•In 2021, the parties amended the 1998 Agreement via approval
and execution of the Amended and Restated Regional
Wastewater Disposal Agreement (ARA).This is the current
agreement which governs our regional cooperation on
wastewater treatment and recycled/repurified water planning.
•Section 2.9 of the ARA required the parties to meet and
negotiate more amendments to the ARA to address unresolved
issues, update billing methodologies, and revise cost
allocations. The updated version of the ARA is referred to as the
SARA.
How Does SARA Improve the ARA?
•Clarifies allocation of fines, penalties, and regulatory enforcement actions among the
parties.
•Transitions the Industrial Pretreatment Program to San Diego for liability purposes.
•Streamlines Metro JPA’s authority to handle operational issues.
•Addresses six specific “Parking Lot Items” that were left unresolved in 2021.
•Establishes four approval paths to update SARA in the future through “Administrative
Agreements”, allowing for more tailored and efficient decision-making.
o City Administrative Approval
o Two-Party Approval
o Joint Administrative Approval
o Traditional Amendment of Agreement
Key Updates of the SARA
2021 ARA
“Parking Lot”
Items
1.Establishes cost-sharing approaches for Phases 1 and 2 of the City’sPure Water Program.
2.Modernizes the billing method to allocate costs more accurately basedon how each agency uses the Metro System.
3.Establishes the Uniformity of the Pretreatment Program by the City ofSan Diego (Admin Agr. 1).
4.Outlines how future regional water reuse projects may be included incapital cost calculations.
5.Provides a sample formula for calculating revenue from repurifiedwater.
6.Includes provisions for the treatment and billing of wastewater frommilitary bases.
Administrative
Agr. No. 1
Unified Management of
Industrial Waste
Discharge Pretreatment
Current: Each
agency
Admin Agr 1: San
Diego
Ordinance is required to delegate
authority
Food Service Establishments discharge
oversight maintained by the District
Billing Methodology Impact to Otay
Summary of Impacts
9
Otay (New)
0.3%
Otay (Current)
0.3%
Recommendation
Adopt a Resolution approving the Second Amended and Restated Regional Wastewater
Disposal Agreement; and
Adopt a Resolution approving Metropolitan Sewerage System Administrative
Agreement No. 1 between the Otay Water District and the City of San Diego.
Questions?
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: February 4, 2026
SUBMITTED BY:
Juan Tamayo,
SCADA/Pump Electrical
Supervisor
PROJECT: P2676 &
P2700
DIV. NO.
APPROVED BY: Charles Mederos, Utility Services Manager
Andrew Jackson, Chief Water Operations
Jose Martinez, General Manager
SUBJECT: APPROVAL TO AWARD ONE (1) PURCHASE ORDER TO SLOAN ELECTRIC, IN AN AMOUNT NOT TO EXCEED $211,316.02 FOR THE REPLACEMENTS OF THE ELECTRIC MOTOR AT 980-2 PUMP STATION AND TWO RECIRCULATION PUMPS AND MOTORS AT 850-2 PUMP STATION AND DECLARING EXISTING
EQUIPMENT AS SURPLUS.
GENERAL MANAGER’S RECOMMENDATION:
That the Otay Water District Board of Directors (Board) authorize the General Manager to issue a purchase order to Sloan Electric in
an amount not-to-exceed $211,316.02 for:
•The replacement of pump motor #1 at the 980-2 Pump Station(CIP P2676)
•The replacement of recirculation pumps and motors #1 and #2at the 850-2 Pump Station (CIP P2700)
COMMITTEE ACTION:
See “Attachment A.”
PURPOSE:
To obtain Board authorization for the General Manager to issue a purchase order to Sloan Electric for the replacement of pump motor
#1 at the 980-2 Pump Station and recirculation pumps and motors #1
AGENDA ITEM 4
and #2 at the 850-2 Pump Station, in an amount not-to-exceed $211,316.02. ANALYSIS:
The District’s 980-2 Pump Station, constructed in 2006 at the 624-3 (30 million gallon) Reservoir site in Chula Vista, is a critical component of the distribution system. It consists of four individual pumps and motors, each capable of delivering up to 4,000 gallons per minute (GPM). The station provides a firm capacity of
12,000 GPM to transfer water from the 624 Pressure Zone to the 980 Pressure Zone (Exhibit A). Pump motor #1 was installed in 2006 as part of the station’s original equipment. It was rebuilt once in 2021 but developed
significant vibration issues in May 2025. Historical data indicates that three of the four original motors (#1,#2, and #4)
were rebuilt at an average age of 12.8 years, falling approximately seven years short of the expected 20-year service life. Additionally, these rebuilt motors averaged only 4.4 years of post-
rebuild operation, well below the anticipated 10-year lifespan of a rebuilt motor. This trend reflects a five-year shortfall in
expected performance. Pump motors #2 and #4, previously rebuilt, were also replaced with
new units in 2022 and 2024 after operating only a brief period post-rebuild before failing again. Pump Motor #1 is now 19 years
old and nearing the end of its 20‑year life expectancy. Rebuilding
motor #1 for a second time is not recommended, especially given the experience with Pump motor #2, which failed just 21 months after a second rebuild. Based on the age, condition, and historical
data, replacement with a new motor is the most reliable and
cost‑effective option.
The 850-2 Disinfection Station, constructed in 1996 and located at
the 850‑2 and 803‑1 Pump Stations on Campo Road in Spring Valley, serves multiple pressure zones including 803, 978, 1200, 860, 850, 832, 1090, 944, 1296, 1485, 1530, and 1655. The facility operates
three 25‑horsepower recirculation pump motors designed to provide
6,000 GPM of mixing capacity for water quality compliance. The design intent is to run two pumps and maintain one on standby
(Exhibit B). Recirculation pumps and motors #1 and #2 have significant mechanical damage, including noise, water leakage from the casing/seals, and vibration, creating a risk of unpredictable
failure. Earlier this fiscal year, recirculation pump motor #3 failed and was replaced after competitive bidding under RFQ
#FY25‑3325‑1118. Replacement costs included $53,067.96 for a new
pump versus $44,445.87 for a rebuild, a 19.33% difference. Given the minimal savings, identical warranty periods, and historical underperformance of rebuilt equipment, a new unit was selected. Following installation, vibration issues were also detected in
motor #3, requiring motor replacement at an additional cost of $10,138.18. There is no evidence that motor #1 or #2 have ever been replaced since original construction in 1996. With 29 years
of operation, exceeding the expected 20‑year lifespan, and given the operational importance of this station, full replacements of both pump and motor assemblies for Units #1 and #2 are recommended.
Staff solicited quotes for the replacement of pump motor #1 at 980-2 Pump Station, and the replacement of recirculation pumps and motors at 850-2 Disinfection Station via PlanetBids, the District’s purchasing solicitation system. Seven quotes were
received and are shown below. Prices include all materials, installation, freight, taxes, performance, and payment bonds:
Description Sloan
Electric
Jeanette
Company
Brax
Company
Cora
Constructors
Power Bros.
Machine
MMC, Inc. General Pump
Company
Replace
Complete
Peerless
Recirculation
Pump and
Motors (2) at
850-2 Pump
Station
$116,573.78 $135,000.00 $149,769.22 $151,000.00 $175,380.40 $218,000.00 $181,734.00
Replace U.S
Electrical
Motor (1) Titan
II Pump Motor
for Pump #1 at
980-2 Pump
Station
$94,742.24 $145,000.00 $133,003.75 $157,000.00 $168,499.33 $171,000.00 $212,144.00
Total Bid $211,316.02 $280,000.00 $282,772.97 $308,000.00 $343,879.73 $389,000.00 $393,878.00
Staff is recommending that the Board authorizes the General Manager
to issue a purchase order to Sloan Electric for the replacement of pump motor #1 at the 980-2 Pump Station and recirculation pumps and motors #1 and #2 at the 850-2 Pump Station. Sloan Electric was the lowest, responsive, and responsible bidder. The company holds the required C-61/D21 (Machinery and Pumps) and C10
(Electrical)licenses. Reference checks with Helix Water District, Olivenhain Municipal Water District, and the City of Poway were
satisfactory.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer The total cost for the two pumps and motors for the 850-2 Disinfection Station is $116,573.78 which will be charged against
CIP P2700: Pump Station Equipment Replacement Program. The total cost for the replacement of pump motor # 1 at the 980-2 Pump Station is $94,742.24 which will be charged against CIP P2676: 980-2 Pump Station Motors and Motor Control Center Replacements. The Project Manager anticipates that CIP P2700 and CIP P2676 have
sufficient funds in the current Fiscal Year budget to cover the pumps and motors replacements. The Finance Department has determined that 100 percent of the funds are available from the Replacement Fund for these CIPs. STRATEGIC GOAL:
This project supports the District’s Mission Statement, “To provide exceptional water and wastewater service to its customers, and to manage District resources in a transparent and fiscally
responsible manner” and the General Manager’s Vision, "To be a model water agency by providing stellar service, achieving
measurable results, and continuously improving operational practices." LEGAL IMPACT:
None. Attachments: Attachment A - Committee Action
Exhibit A – Map location of 980-2 Pump Station Exhibit B – Map location of 850-2 Pump Station
ATTACHMENT A
SUBJECT/PROJECT:
APPROVAL TO AWARD ONE (1) PURCHASE ORDER TO SLOAN ELECTRIC, IN AN AMOUNT NOT-TO-EXCEED $211,316.02 FOR THE REPLACEMENTS OF THE ELECTRIC MOTOR AT 980-2 PUMP STATION AND TWO RECIRCULATION PUMPS AND MOTORS AT 850-2 PUMP STATION, AND
THE SURPLUS OF EXISTING EQUIPMENT.
COMMITTEE ACTION:
The Engineering, Operations, and Water Resources Committee reviewed this item at a meeting held on January 20, 2026, and the following comments were made:
NOTE:
The “Committee Action” is written in anticipation of the Committee moving the item forward for board approval. This report will be sent
to the Board as a committee approved item or modified to reflect any discussion or changes as directed from the committee prior to presentation to the full board.