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Home My WebLink About02-04-26 Board Packet1 OTAY WATER DISTRICT AND OTAY WATER DISTRICT FINANCING AUTHORITY BOARD OF DIRECTORS MEETING BY TELECONFERENCE 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY, CALIFORNIA WEDNESDAY February 4, 2026 3:30 P.M. AGENDA 1.ROLL CALL a)BOARD ACTION TO APPROVE REMOTE ATTENDANCE FOR DIRECTOR GARY CROUCHER DUE TO JUST CAUSE. HE WILL REMOTELY ATTENDTHE MEETING FROM 3680 REYNARD WAY, SAN DIEGO, CA 92103 2.PLEDGE OF ALLEGIANCE 3.APPROVAL OF AGENDA 4.APPROVAL OF THE MINUTES OF THE REGULAR BOARD MEETING OF JAN-UARY 7, 2026, AND SPECIAL BOARD MEETING OF DECEMBER 8, 2025 5.PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLICTO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THEBOARD’S JURISDICTION INCLUDING AN ITEM ON TODAY’S AGENDA The District’s meeting is live streamed. Information on how to participate in the District’s meeting can be found at this link: https://otaywater.gov/board-of-direc-tors/agenda-and-minutes/board-agenda/ Members of the public may also submit their comments on agendized and non- agendized items via email to BoardSecretary@otaywater.gov, or may address the Board by submitting a Request to Speak Form thirty (30) minutes prior to the startof the meeting. If you submit a Request to Speak Form, call-in instructions will besent to the email provided on the form. Your request to speak will be acknowledgedduring the “Public Participation” portion of the meeting when the Board will hear your comment. When called to speak, please state your name and the city in which you reside. Please note that you will be provided three (3) minutes to speak and 2 email comments must not take more than three (3) minutes to read. The Board is not permitted to enter into a dialogue with the speaker during this time. CONSENT ITEMS 6. ITEMS TO BE ACTED UPON WITHOUT DISCUSSION, UNLESS A REQUEST IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A PARTICULAR ITEM: a) AUTHORIZE THE GENERAL MANAGER TO AWARD A PURCHASE OR- DER 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) b) AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AMENDMENT TO THE CONSULTING SERVICES AGREEMENT WITH BURKE, WIL- LIAMS, & SORENSEN, LLP INCREASING THE NOT-TO-EXCEED AMOUNT BY $50,000, FOR A REVISED TOTAL NOT-TO-EXCEED AMOUNT OF $125,000 (SUZIE LAWSON) ACTION ITEMS 7. BOARD a) ADOPT RESOLUTION #4469 OF THE BOARD OF DIRECTORS OF OTAY WATER DISTRICT APPOINTING ___________ AS THE OTAY WATER DISTRICT’S REPRESENTATIVE TO THE BOARD OF DIRECTORS OF THE SAN DIEGO COUNTY WATER AUTHORITY (FIRST SEAT) (JOSE MARTINEZ) b) ADOPT RESOLUTION #4467 APPROVING THE SECOND AMENDED AND RESTATED 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) c) ADOPT RESOLUTION #4466 AUTHORIZING THE ESTABLISHMENT OF A NEW INVESTMENT ACCOUNT AT NEIGHBORHOOD NATIONAL BANK FOR THE PURPOSE OF PARTICIPATING IN THE CERTIFICATE OF DE- POSIT ACCOUNT REGISTRY SERVICE (CDARS) DEPOSIT INVESTMENT PROGRAM (JON RAVAGLIOLI) d) DISCUSS THE 2026 BOARD MEETING CALENDAR AND AUTHORIZE DATE CHANGE FOR THE MAY BOARD MEETING (JENNY DIAZ) 3 REPORTS 8. GENERAL MANAGER’S REPORT 9. SAN DIEGO COUNTY WATER AUTHORITY UPDATE 10. PRESIDENT’S REPORT/REQUESTS 11. DIRECTORS' REPORTS/REQUESTS RECESS TO CLOSED SESSION 12. CLOSED SESSION a) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION [GOVERNMENT CODE §54956.9 (d)(2)]; ONE (1) CLAIM: STEPHANIE AND ROBERT HERBER SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO SUBDIVISION (d)(2) OF GOVERNMENT CODE §54956.9 (1 CASE – CLAIM) b) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION [GOVERNMENT CODE §54956.9 (d)(2)]; ONE (1) CLAIM: STEPHEN AND JEANNE HERMAN SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO SUBDIVISION (d)(2) OF GOVERNMENT CODE §54956.9 (1 CASE – CLAIM) c) CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT TO CALIFORNIA GOVERNMENT CODE §54956.8 Property: SALT CREEK GOLF COURSE 525 HUNTE PARWAY CHULA VISTA, CA 91914 Agency negotiator: General Counsel Under negotiation: Disposition of Property RETURN TO OPEN SESSION REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION. THE BOARD MAY ALSO TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION. OTAY WATER DISTRICT FINANCING AUTHORITY 13. NO MATTERS TO DISCUSS 4 14. ADJOURNMENT All items appearing on this agenda, whether or not expressly listed for action, may be deliberated and may be subject to action by the Board. The Agenda, and any attachments containing written information, are available at the District’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 participate 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 72 hours in ad- vance of the regular meeting of the Board of Directors (Government Code Section §54954.2). /s/ Jenny Diaz, District Secretary 1 MINUTES OF THE BOARD OF DIRECTORS MEETINGS OF THE OTAY WATER DISTRICT AND OTAY WATER DISTRICT FINANCING AUTHORITY January 7, 2026 The meeting was called to order by President Lopez at 3:33 p.m. 1.ROLL CALL President Lopez indicated that Board action was required to approve the remote attendance of Director Croucher. A motion to approve the remote attendance of Director Croucher was made by Director Robak, seconded by Director Rivera, and carried with the following vote: Ayes: Directors Lopez, Gonzalez, Lopez, Robak, and Rivera Noes: None Abstain: Director Croucher Absent: None Directors Present: Lopez, Croucher, Gonzalez, Robak, and Rivera. Directors Absent: None. Staff Present: General Manager, Jose Martinez; General Counsel, Dan Shinoff; Chief Financial Officer, Joe Beachem; Chief of Administrative Services, Kevin Koeppen; Engineering Manager, Beth Gentry; Chief of Operations, Andrew Jackson; and District Secretary, Jenny Diaz. 2.PLEDGE OF ALLEGIANCE A moment of silence was held for former employee, Suzanne Chambers, who passed away on January 2, 2026. Director Robak provided a brief history of Ms. Chambers and shared that she was the first female executive at the District. 3.PRESENTATION OF RECOGNITION PLAQUE TO BOARD PRESIDENT Treasurer Frank Rivera presented a recognition plaque award to Board President Jose Lopez and thanked him for his leadership in 2025. President Lopez shared his gratitude to board members and all district staff. 4.ELECTION OF BOARD PRESIDENT, VICE PRESIDENT, AND TREASURER General Manager Jose Martinez chaired the meeting during the elections of Board President, Vice President, and Treasurer of the Otay Water District. AGENDA ITEM 4 2 A motion to elect Director Rivera as Board President, Director Robak as Vice President, and Director Gonzalez as Treasurer of the Board was made by Director Robak and carried with the following vote: Ayes: Directors Lopez, Croucher, Rivera and Robak Noes: Director Gonzalez Abstain: None Absent: None Having been elected as Board President, Director Rivera immediately chaired the remainder of the meeting. 7. APPROVAL OF AGENDA General Counsel, Dan Shinoff, announced that as a result of the work by Engineering Manager, Beth Gentry, and Senior Civil Engineer, Lito Santos, a resolution was achieved, further indicating that agenda items 16a and 17a would no longer need to be presented. A motion to approve removing these items from the agenda was made by Director Croucher, seconded by Director Gonzalez, and carried with the following vote: Ayes: Directors Rivera, Croucher, Gonzalez, Robak, and Lopez Noes: None Abstain: None Absent: None A motion to approve the modified agenda was made by Director Robak, seconded by Director Rivera, and carried with the following vote: Ayes: Directors Rivera, Croucher, Gonzalez, Robak, and Lopez Noes: None Abstain: None Absent: None 8. APPROVAL OF THE MINUTES OF THE REGULAR BOARD MEETING OF NOVEMBER 5, 2025 A motion to approve the minutes of the regular board meeting of November 5, 2025, was made by Director Robak, seconded by Director Gonzalez, and carried with the following vote: Ayes: Directors Rivera, Croucher, Gonzalez, Rivera, and Lopez Noes: None Abstain: None Absent: None 3 9. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA No one wished to be heard. 10. RECESS OTAY WATER DISTRICT BOARD MEETING 11. CONVENE THE OTAY WATER DISTRICT FINANCING AUTHORITY BOARD MEETING President Rivera recessed the Otay Water District Board Meeting at 3:50 p.m. and convened the Otay Water District Financing Authority board meeting. 12. ROLL CALL Directors Present: Rivera, Croucher, Gonzalez, Robak, and Lopez. 13. RE-AFFIRM OFFICERS OF THE OTAY WATER DISTRICT FINANCING AUTHORITY General Manager Martinez indicated that staff’s recommendation was to elect the Board President Rivera as President of the Financing Authority, Director Robak as Vice President, General Manager Martinez as Executive Director, Chief Financial Officer Joe Beachem as Treasurer/Auditor, and District Secretary as Secretary to the Otay Water District Financing Authority. A motion to elect the Board President Rivera as President of the Financing Authority, Director Robak as Vice President, General Manager Martinez as Executive Director, Chief Financial Officer Joe Beachem as Treasurer/Auditor, and District Secretary as Secretary to the Otay Water District Financing Authority, was made by Director Croucher, seconded by Director Robak, and carried with the following vote: Ayes: Directors Rivera, Croucher, Gonzalez, Robak, and Lopez Noes: None Abstain: None Absent: None 14. ADJOURN THE OTAY WATER DISTRICT FINANCING AUTHORITY BOARD MEETING President Rivera adjourned the Otay Water District Financing Authority Board Meeting at 3:52 p.m. and convened the Otay Water District Board meeting. 15. RECONVENE THE OTAY WATER DISTRICT BOARD MEETING 4 PUBLIC HEARING 16. a) ITEM REMOVED FROM AGENDA ACTION ITEMS 17. BOARD a) ITEM REMOVED FROM AGENDA b) ADOPT RESOLUTION NO. 4465 OF THE BOARD OF DIRECTORS OF OTAY WATER DISTRICT APPOINTING ___________ AS THE OTAY WATER DISTRICT’S REPRESENTATIVE TO THE BOARD OF DIRECTORS OF THE SAN DIEGO COUNTY WATER AUTHORITY (SECOND SEAT) (JOSE MARTINEZ) General Manager Martinez presented the resolution and reminded Board members that a year ago Director Robak was appointed to the second seat vacated by former Director Tim Smith. He further indicated that this term is set to expire at the end of January and that an action item would be needed to either reappoint or appoint somebody to the next 6-year term. Board members provided comments and asked questions. A motion to appoint Director Mark Robak as the representative to the Board of Directors of the San Diego County Water Authority (Second Seat) was made by Director Lopez, seconded by President Rivera, and carried with the following vote: Ayes: Directors Rivera, Croucher, Gonzalez, Robak, and Lopez Noes: None Abstain: None Absent: None c) DISCUSS THE 2026 BOARD MEETING CALENDAR District Secretary, Jenny Diaz, presented the 2026 Board Meeting calendar and indicated that the Engineering, Operations, and Water Resources Committee meeting would be held on Tuesday, January 20, at 12:00 p.m., and that the Finance and Administration Committee meeting would be held on Wednesday, January 21, at 12:00 p.m. No other changes were noted or made to the board meeting calendars. INFORMATIONAL ITEMS 18. ITEMS ARE PROVIDED TO THE BOARD FOR INFORMATIONAL PURPOSES ONLY. NO ACTION IS REQUIRED ON THE FOLLOWING AGENDA ITEMS: 5 a) UPDATE ON THE RECYCLED WATER INTERTIE PROJECT PLANNING STUDY WITH SWEETWATER AUTHORITY Engineering Manager, Beth Gentry, provided the staff report and presentation and responded to Board members’ questions and comments. b) FIRST QUARTER FISCAL YEAR 2026 CAPITAL IMPROVEMENT PROGRAM REPORT The Board waived presentation of this informational item; however, Engineering Manager, Kevin Cameron, responded to board members’ questions and comments. REPORTS 19. GENERAL MANAGER’S REPORT General Manager Martinez provided several district updates including that on December 11, 2025, Tenille Otero, Communications Officer, and Beth Gentry, Engineering Manager, graduated from The Centre for Organizational Effectiveness’ Public Management Academy; he also announced that Director Gonzalez was appointed to the ACWA Local Government Committee; and he also shared that Mike Kerr, IT Manager, was recognized by the San Diego Business Journal’s 2025 Veteran Leaders of Influence. General Manager Martinez and staff responded to Board members’ questions and comments. 20. SAN DIEGO COUNTY WATER AUTHORITY UPDATE President Rivera and Director Robak provided updates on CWA matters discussed at its November 20, 2025, board meeting. President Rivera indicated that all Directors were provided with a copy of the summary. 21. DIRECTORS' REPORTS/REQUESTS Reports from Directors Gonzalez, Lopez, Rivera, Robak, and Croucher were submitted to the District Secretary, which will be attached to the minutes for today’s meeting. 22. PRESIDENT’S REPORT A report from President Lopez will be submitted to the District Secretary and will be attached to the minutes for today’s meeting. UURECRECESS TO CLOSED SESSION 23. CLOSED SESSION The board recessed to closed session at 5:21 p.m. to discuss the following matters: 6 a) CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION [GOVERNMENT CODE §54956.9] MARK COZIAHR, ET AL. vs. OTAY WATER DISTRICT, CASE NO. 37- 2015-000-CU-MC-CTL b) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION [GOVERNMENT CODE §54956.9 (d)(2)] SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO SUBDIVISION (d)(2) OF GOVERNMENT CODE §54956.9 (1 CASE – CLAIM OF SDG&E) UU RECRETURN TO OPEN SESSION 24. The Board reconvened from closed session at 6:15 p.m. and General Counsel Dan Shinoff reported that there was one (1) reportable action from closed session, 23b. The Board considered the claim and a motion to reject the claim from SDG&E was made by Director Lopez, seconded by Director Gonzalez, and carried with the following vote: Ayes: Directors Rivera, Robak, Gonzalez, and Lopez Noes: None Abstain: None Absent: Director Croucher UUOTAY WATER DISTRICT FINANCING AUTHORITY 25. NO MATTERS TO DISCUSS There were no items scheduled for discussion for the Otay Water District Financing Authority board. 26. ADJOURNMENT With no further business to come before the Board, President Rivera adjourned the meeting at 6:16 p.m. President ATTEST: District Secretary 1 MINUTES OF THE SPECIAL BOARD MEETING OF THE BOARD OF DIRECTORS OTAY WATER DISTRICT December 8, 2025 1. President Lopez called the meeting to order at 12:10 p.m. 2. ROLL CALL Directors Present: Lopez, Rivera, Robak, and Gonzalez Directors Absent: Croucher Staff Present: General Manager, Jose Martinez; General Counsel, Dan Shinoff (virtually); Chief of Administrative Services, Adolfo Segura; Chief of Administrative Services, Kevin Koeppen; Chief Financial Officer, Joe Beachem; Chief of Engineering, Michael Long; Chief of Operations, Andrew Jackson; Communications Officer, Tenille Otero; Information Technology Manager, Michael Kerr; Customer Service Manager, Andrea Carey; and District Secretaries, Tita Ramos-Krogman and Jenny Diaz. 3. PLEDGE OF ALLEGIANCE 4. APPROVAL OF THE AGENDA A motion to approve the agenda was made by Director Rivera, seconded by Director Lopez and carried with the following vote: Ayes: Directors Lopez, Rivera, Robak, and Gonzalez Noes: None Abstain: None Absent: Director Croucher 5. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA No one wished to be heard. WORKSHOP 6. WORKSHOP OF THE OTAY WATER DISTRICT’S UPCOMING FISCAL YEAR 2027 – 2030 STRATEGIC PLAN 2 General Manager Martinez introduced Rex Sanders and Rafael Silva (consultants), with The Hive Consulting, who facilitated the workshop. Members of the Board, staff, and the consultants engaged in an interactive discussion, which included priority alignment, key insights, integration, consensus, and direction. The next steps were outlined and included developing formal goals, strategies, objectives, and key performance indicators. 7. ADJOURNMENT President Lopez thanked staff for their time. With no further business to come before the Board, President Lopez adjourned the meeting at 3:24 p.m. President ATTEST: District Secretary Strategic Plan Workshop Developing Strategic Goals and Objectives December 8th, 2025 Otay Water District Facilitated by Where we are in the strategic planning process Staff Priorities & SWOT insights Strategic Planning Workshop Strategic Plan Draft & Approval Today Staff teams identified emerging issues, themes, and operational perspectives to inform the strategic context. Board members provided strategic insights and perspectives through the pre- workshop survey. Align on strategic direction and define focus areas for the next 3–5 years. Executive team integrates Board- aligned priorities into the updated Strategic Business Plan. Board Input & Priorities 2 Strategic Plan Build and Finalize Develop formal goals, strategies, objectives, and key performance indicators December 2025 – March 2026 July 2026 Publish Finalize and distribute the digital and print publications and upload new plan into the reporting application Development Timeline 3 Collect Board Input Board of Directors Workshop (inputs and direction) December 2025 Adopt Present finalized Strategic Plan during March Committees and April Board April 2026 Agenda Workshop Overview (10 minutes) Strategic Context: Where We Are Today (50 minutes) Break (10 minutes) Priority Alignment & Consensus (100 minutes) Integration & Next Steps (10 minutes) Includes a 20-minute break 4 Workshop Objective We will achieve that by: •Grounding today’s discussions in a clear, shared process. •Reviewing key insights provided by both Board and Staff. •Identifying and aligning on strategic focus areas for the next 3–5 years. Our core objective is to: Reinforce shared understanding of the District’s strategic direction and priorities for the next 3–5 years. 5 Workshop Principles Stay strategic: focus on the what, not the how Everyone contributes, one voice at a time Listen to understand, aim for alignment Keep it forward-looking (3–5 years) To provide exceptional water and wastewater service to its customers, and to manage District resources in a transparent and fiscally responsible manner. Our Mission Statement 6 Agenda Workshop Overview (10 minutes) Strategic Context: Where We Are Today (50 minutes) Break (10 minutes) Priority Alignment & Consensus (100 minutes) Integration & Next Steps (10 minutes) 7 Includes a 20-minute break Our Strategic Framework: The Balanced Scorecard Customer & Community Financial & Resource Stewardship Internal Processes & Operations Learning and Growth Enhance customer and community engagement to increase public awareness of the water industry and the District, while continuing to provide superior customer service. Operate the District in a financially sustainable and transparent manner. Practice ongoing infrastructure renewal and organizational improvement through planning and increased operational efficiency. Foster a workforce culture of employee development and innovation. 8 Insights: What We Have Heard Pressing Opportunities & Challenges Core Strengths & Internal Capabilities •Maintaining affordability amid regional financial pressures; controlling water and wastewater rate increases •Focusing on succession planning, workforce development / training, and talent acquisition •Strengthening customer communication, engagement, and education while responding to community needs •Aging infrastructure maintenance and modernization •Integrating AI, automation, and cybersecurity •Keeping pace with state and federal regulatory changes •Enhancing emergency preparedness and customer response protocols •Exploring alternative or lower-cost water supply options (e.g., Rosarito Desalinization Project) •Efficiency-driven organization through innovation, technology, and data (e.g., AMI / start-metering, leak detection, water reuse, treatment technologies, etc.) •Utilizing quantifiable metrics / KPIs •Strong, humble leadership; caring Board and management team •Culture of proactive communication and collaboration across departments •Financial stability and transparency •Preparedness for major outages (e.g., backup generators at pump stations) •Responsive to demand scarcity via water reuse, recycling, and efficient treatment technology Higher level of consistency seen across stakeholder input 9 Insights: What We Have Heard Emerging Trends & External Factors Top Priorities for the Next 2–3 Years •Growth of AI and automation to improve operational efficiency •Increasing regulatory mandates (e.g., subsidize rate payers), including unfunded requirements •Digital communication expectations: expanded outreach, multilingual content, crisis alerts •Social expectations for transparency, equity, and customer responsiveness •Rising water supply costs and regional budget challenges within partner agencies •Climate extremes impacting supply, quality, and infrastructure •Drive efficiency gains through technology, data, and smart infrastructure (e.g., optimize delivery, detect leak, reduce waste) •Explore other/cheaper water supplies; strengthen supply reliability and sustainability •Enhance customer engagement, education, service responsiveness •Advance innovation and cybersecurity •Evaluate wastewater service areas to complete missing collection system infrastructure •Ensure water quality assurance •Expand workforce development, leadership, and talent pipeline •Strengthen financial prudence / transparency •Advance infrastructure modernization & resilience •Maintain legislative and regional efforts to keep rates affordable •Consider changing rate billing structure (e.g., flat rate billing) •Promote equitable investment benefiting lower-income communities 10 Higher level of consistency seen across stakeholder input Where We See Consensus Customer & Community Internal Processes & Operations •Enhance the use of communication tools to provide timely educational information on service delivery and costs as well as critical customer notifications. •Enhance guidelines to engage community groups to highlight stewardship and performance effectively. •Upgrade digital platforms to make District information and services easier to access, understand, and use. •Increase customer and community engagement activities to build trust and strengthen relationships, including in-person engagement. •Optimize workforce capacity and productivity. •Modernize workflows: integrate an AI framework, and pilot technologies (e.g., AMI/IoT and predictive analytics) for data- driven operations. •Leverage data to monitor and improve performance. •Update labor policies, programs (wellness, health, and incentives), and practices. •Enhance/align procurement processes to improve efficiency and reduce risk. Strengthen reliability, resilience, and long-term planning to ensure a sustainable and high-performing organization. Enhance customer and stakeholder experience, education, and engagement. 11 Where We See Consensus Financial & Resource Stewardship Learning and Growth 12 •Implement a long-range capital improvement plan to extend asset lifecycle. •Advance asset management, data-driven maintenance, and replacement strategies. •Strengthen business continuity and operational resilience (cybersecurity readiness, tabletop exercise, response plans, etc.). •Develop long-term strategies for recycled water and sewer services. •Evaluate wastewater service areas to complete missing collection system infrastructure. •Advance operational safety programs (Cal/VPP, ACWA/JPIA). •Strengthen staff-wide communication and collaboration. •Advance workforce development and talent strategies: •Develop a high-performing workforce (leadership training, mentorship, cross-training, professional development, career progression, etc.). •Partner with educational organizations and water agencies to inspire future workforce participation. Attract and maintain a high-performing and skilled workforce. Align and adapt organizational structures to optimize performance, efficiency, sustainability, and long-term workforce stability. What Is New or Evolving Customer & Community Financial & Resource Stewardship Internal Processes & Operations Learning and Growth •Consider community equity impacts when planning long-term water and sewer investments. •Collaborate with the City of San Diego on regional water and wastewater planning and policies. •Consider broader water supply strategies, for example “explore ways to reduce water supply costs such as alternative water supplies (e.g., Rosarito Desalinization Project)”. •Explore different rate billing structures. •Plan for retirements and knowledge transfer to sustain critical skills. 13 Agenda Workshop Overview (10 minutes) Strategic Context: Where We Are Today (50 minutes) Break (10 minutes) Priority Alignment & Consensus (100 minutes) Integration & Next Steps (10 minutes) 14 Includes a 20-minute break Agenda Workshop Overview (10 minutes) Strategic Context: Where We Are Today (50 minutes) Break (10 minutes) Priority Alignment & Consensus (100 minutes) Integration & Next Steps (10 minutes) 15 Includes a 20-minute break How We Achieve Consensus •Strategic importance (impact on mission & long-term direction) •Urgency (3–5 year timeframe) •Risk mitigation (reduces major organizational or operational risks) •Resourcing feasibility (achievable with expected constraints) •Stakeholder value (improves customer/community outcomes) For discussion 16 New & Evolving Achieving Consensus: Customer & Community •Consider community equity impacts when planning long-term water and sewer investments. •Enhance the use of communication tools to provide timely educational information on service delivery and costs as well as critical customer notifications. •Enhance guidelines to engage community groups to highlight stewardship and performance effectively. •Upgrade digital platforms to make District information and services easier to access, understand, and use. •Increase customer and community engagement activities to build trust and strengthen relationships, including in-person engagement. Consensus For discussion 17 Enhance customer and stakeholder experience, education, and engagement. New & Evolving Achieving Consensus: Financial & Resource Stewardship •Implement a long-range capital improvement plan to extend asset lifecycle. •Advance asset management, data-driven maintenance, and replacement strategies. •Strengthen business continuity and operational resilience (cybersecurity readiness, tabletop exercise, response plans, etc.). •Develop long-term strategies for recycled water and sewer services. •Evaluate wastewater service areas to complete missing collection system infrastructure. Consensus •Consider broader water supply strategies, for example “explore ways to reduce water supply costs such as alternative water supplies (e.g., Rosarito Desalinization Project)”. •Explore different rate billing structures. For discussion 18 Align and adapt organizational structures to optimize performance, efficiency, sustainability, and long-term workforce stability. Achieving Consensus: Internal Processes & Operations •Optimize workforce capacity and productivity. •Modernize workflows: integrate an AI framework, and pilot technologies (e.g., AMI/IoT and predictive analytics) for data- driven operations. •Leverage data to monitor and improve performance. •Update labor policies, programs (wellness, health, and incentives), and practices. •Enhance/align procurement processes to improve efficiency and reduce risk. •Collaborate with the City of San Diego on regional water and wastewater planning and policies. For discussion 19 Strengthen reliability, resilience, and long-term planning to ensure a sustainable and high- performing organization. New & Evolving Consensus Achieving Consensus: Learning and Growth •Advance operational safety programs (Cal/VPP, ACWA/JPIA). •Strengthen staff-wide communication and collaboration. •Advance workforce development and talent strategies: •Develop a high-performing workforce (leadership training, mentorship, cross-training, professional development, career progression, etc.). •Partner with educational organizations and water agencies to inspire future workforce participation. •Plan for retirements and knowledge transfer to sustain critical skills. For discussion 20 New & Evolving Consensus Attract and maintain a high-performing and skilled workforce. Agenda Workshop Overview (10 minutes) Strategic Context: Where We Are Today (50 minutes) Break (10 minutes) Priority Alignment & Consensus (100 minutes) Integration & Next Steps (10 minutes) 21 Includes a 20-minute break Strategic Plan Integration and Next Steps 22 Build and Finalize Develop formal goals, strategies, objectives, and key performance indicators December 2025 – March 2026 July 2026 Publish Finalize and distribute the digital and print publications and upload new plan into the reporting application Collect Board Input Board of Directors Workshop (inputs and direction) December 2025 Adopt Present finalized Strategic Plan during March Committees and April Board April 2026 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 6a 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 andmotors at 850-2 Disinfection Station via PlanetBids, theDistrict’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 thepumps and motors replacements. The Finance Department hasdetermined that 100 percent of the funds are available from theReplacement 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: •The Committee stated that reference checks were prudent given the spread. •In response to a question from the Committee regarding contingencies, staff indicated that the bids received were all-inclusive pricing(materials, installation, freight, taxes, performance/payment bonds). •The Committee further inquired about the reliability of rebuildingvs. replacement, to which staff responded that prior rebuild cost was approximately $51,000, while a new motor, which costs approximately$111,000, has about a 20-year life expectancy. •Staff noted that the rebuild life varies by operating conditions (dutycycles, pressures), so while rebuilds should still be considered, the decision should be data driven. Given the failure of a rebuilt motorat this facility and asset age, staff recommends replacement. Following the discussion, the Committee supported staff’s recommendation and presentation to the full board as a consent item. STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: February 4, 2026 PROJECT: Various DIV. NO. ALL SUBMITTED BY: Suzie Lawson Human Resources Manager APPROVED BY: Kevin Koeppen, Chief, Administrative Services Jose Martinez, General Manager SUBJECT: AUTHORIZE AN AMENDMENT TO THE CONSULTING SERVICES AGREEMENT BETWEEN THE OTAY WATER DISTRICT AND BURKE, WILLIAMS & SORENSEN, LLP AND APPROVE THE TOTAL AMENDED CONTRACT AMOUNT GENERAL MANAGER’S RECOMMENDATION: That the Board of Directors (Board) authorize the General Manager to execute an amendment to the consulting services agreement (Agreement) by and between the Otay Water District (District) and Burke, Williams & Sorensen, LLP (Consultant) increasing the not-to-exceed amount by $50,000, for a revised total not-to-exceed amount of $125,000. COMMITTEE ACTION: See “Attachment A.” PURPOSE: To obtain Board authorization for the General Manager to execute an amendment increasing the not-to-exceed amount for the consulting services agreement by and between the District and the Consultant. ANALYSIS: The District has been utilizing the Consultant for ongoing labor matters since November 2023. The Consultant initially performed legal services and consultation relating to labor relations, including reviewing the Memorandum of Understanding (MOU) between the District and the Otay Water District Employees’ Association (Association) and serving as Chief Negotiator during 2024 labor negotiations. AGENDA ITEM 6b Subsequent to the conclusion of the 2024 labor negotiations, it was determined that additional legal consultation was necessary to assist in the evaluation of the impact new laws have on the MOU, as well as District policies and procedures. To maintain consistency and efficiency in the evaluation of these impacts to the District, the District entered into an agreement with the Consultant dated July 1, 2025, through June 30, 2026, not-to-exceed $75,000 for services related to Fiscal Year 2026 ongoing labor and employment matters. The current not-to-exceed amount of $75,000 was within the General Manager’s authority. The actual cost of Consultant’s services provided under the current agreement through November 2025 totaled $51,813. Based on average actual monthly costs and increases in the quantity and complexity of sensitive matters being reviewed by the Consultant, staff requests an increase of $50,000, increasing the not-to-exceed amount from $75,000 to $125,000. The increase staff is requesting in this report is due to the impact of changes to laws being more numerous and complex than anticipated. This increase is necessary to secure legal consultation for sensitive labor and employment matters through the end of the current fiscal year. Based on the aforementioned, staff is requesting that the Board authorize the General Manager to execute an amendment to the current agreement in the amount of $50,000 and authorize the revised total not- to-exceed amount of $125,000. FISCAL IMPACT: Joe Beachem, Chief Financial Officer With approval, this amendment will increase the current not-to-exceed amount by $50,000, revising the total from $75,000 to $125,000. Staff prepared the Fiscal Year 2026 budget, which included $75,000 for the related services. Finance has determined that funds are available to fund the requested increase in the agreement. LEGAL IMPACT: None. ATTACHMENTS: Attachment A – Committee Action Report ATTACHMENT A SUBJECT/PROJECT: AUTHORIZE AN AMENDMENT TO THE CONSULTING SERVICES AGREEMENT BETWEEN THE OTAY WATER DISTRICT AND BURKE, WILLIAMS & SORENSEN, LLP AND APPROVE THE TOTAL AMENDED CONTRACT AMOUNT COMMITTEE ACTION: The Finance & Administration Committee reviewed this item at a meeting held on January 21, 2026, and the following comments were made: •Staff indicated that the current agreement’s $75,000 limit is beingutilized more frequently than anticipated due to the volume and complexity of legal reviews. •Responding to the Committee’s inquiry, staff stated that the increase is necessary to assist staff with ongoing legal consultation for laborand employment matters related to changes in laws as well as clarifications to the terms and conditions of the current MOU. •The Committee expressed satisfaction with the firm’s performance, noting their effectiveness. Staff added that the firm has a goodworking relationship with the District and that using them for ongoing consultation provides consistency as they were the chief negotiatorsfor the current MOU. •In response to a question from the Committee regarding the referencedamount of $51,813, staff indicated that the amount was the actualcosts incurred through November 2025. Following the discussion, the Committee supported staff’s recommendation and presentation to the full board as a consent item. 1 RESOLUTION NO. 4469 A RESOLUTION OF THE BOARD OF DIRECTORS OF OTAY WATER DISTRICT CONSENTING TO AND APPROVING THE APPOINTMENT OF ____________ AS A REPRESENTATIVE TO THE BOARD OF DIRECTORS OF THE SAN DIEGO COUNTY WATER AUTHORITY (FIRST SEAT) WHEREAS, Section 6(d) of the County Water Authority Act (Chapter 545 of the Statutes of 1943, Chapter 45 Water Code) provides that, in addition to its one representative, each mem- ber agency may, at its option, designate and appoint one addi- tional representative under certain conditions; and WHEREAS, the Board of Directors (Board) of the Otay Water District (District) previously consented to and approved the designation and appointment of Frank Rivera to serve as the Dis- trict’s first representative on the San Diego County Water Au- thority Board of Directors (“CWA Board”) on October 1, 2025; and WHEREAS, Mr. Rivera’s term as a designated and appointed representative of the District to the CWA Board expires on March 3, 2026; and WHEREAS, the District proposes, and this Board desires to consent to and approve, the designation and appointment of ________________ as the District’s first representative to the CWA Board, said term expiring on March 3, 2032. NOW, THEREFORE, it is hereby resolved, ordered, and deter- mined by the Board of Directors of the Otay Water District as follows: AGENDA ITEM 7a 2 SECTION 1. This Board of Directors hereby consents to and ap- proves the designation and appointment of _______________ as the District’s first representative on the Board of Directors of the San Diego County Water Authority for the term ending on March 3, 2032. SECTION 2. The President of the District’s Board, the General Manager of the District, the District’s Secretary, and their de- signees are hereby authorized to take any action required to be taken on behalf of the District to carry out the purpose of this Resolution. SECTION 3. This Resolution shall be effective as of the date it is adopted. PASSED, APPROVED AND ADOPTED by the Otay Water District Board of Directors at a regular meeting held this 4th day of Feb- ruary 2026. AYES: NOES: ABSENT: ABSTAIN: ___________________________ President ATTEST: ________________________ 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 7b 2 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 3 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: 4 •SARA updates the legal document that governs regional cooperation on wastewater treatment and recycled/repurifiedwater planning. •SARA reorganizes the 1998 Agreement and modernizes agreementlanguage. •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 SanDiego; 4. The inclusion of costs for regional, non-Metro Systempotable reuse projects in calculating the capital expenserates; 5. A sample calculation of Repurified Water Revenue; and6. Provisions for the conveyance and treatment of wastewater generated at US military bases. •SARA provides more flexibility for future adjustments to keepthe 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: 5 • Inspection and permitting billing will now be administered bySan 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." 6 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, and the following comments were made: •Staff indicated that the Second Amended and Restated Regional Wastewater Disposal Agreement (SARA) is the product of over fouryears of negotiations among participating agencies (PA) and the City of San Diego. •Staff presented the structure of Otay’s sewage collection system, flow directions, and participation in the Metro system, governed bythe Metro Commission/JPA originally established under a 50-year agreement formed in 1998, and the Metro Commission’sresponsibilities defined in 2000. •The Committee highlighted the cost exposure, noting that PAobligation was previously stated as $1.8B (2018 NPV). Withconstruction cost index increases and extended schedule, there isconcern that PA share could reach ~$2.5B. The Committee emphasizedthe need to monitor costs and timelines. •In response to a question from the Committee regarding FOGresponsibilities, staff stated that PAs will continue FOG inspections locally, and the City will manage broader industrialpretreatment administration. Staff further noted that there may be some minor reduction in local administrative burden (e.g.,billing/collections). •The Committee provided historical context on Point Loma plantcapacity, footprint, and regional roles; further noting Otay’s small sewer system but significant stake through recycled water. •The Committee indicated that most agencies have approved the agreement, while one agency remained pending due to East Countyrecycling and pure water project considerations. Following the discussion, the Committee supported staff’s recommendation and presentation to the full board as an action item. 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 10-23-25 4907-3419-6844 TABLE OF CONTENTS Page 1. DEFINITIONS ....................................................................................................................3 2. OWNERSHIP AND OPERATION OF THE METRO SYSTEM......................................9 2.1 Rights of the Parties.................................................................................................9 2.2 Metro System Services............................................................................................9 2.3 Flow Commitment.................................................................................................10 2.4 Funding Obligations ..............................................................................................10 2.5 Limitations on Types and Condition of Wastewater.............................................11 2.6 Enforcement Actions.............................................................................................11 2.7 Right of First Refusal.............................................................................................13 2.8 Uniform Enforcement of Pretreatment Program by City ......................................14 2.9 Wastewater Generated at Military Bases...............................................................16 3. CAPACITY RIGHTS........................................................................................................16 3.1 Contract Capacity ..................................................................................................16 3.2 Inter-Agency Transfers of Contract Capacity........................................................16 3.3 New Contract Capacity..........................................................................................17 3.4 Reductions in Metro System Capacity ..................................................................18 3.5 Restrictions on Veto of Transfers and Acquisitions of Capacity ..........................18 3.6 Amendments to Exhibits B....................................................................................18 3.7 The South Bay Ocean Outfall................................................................................18 4. FINANCE, BUDGETING, AND ACCOUNTING: PAYMENT AND MONITORING PROVISIONS....................................................................................................................18 4.1 Payment for Metro System Facilities ....................................................................18 4.2 Payment for Additional Metro System Facilities ..................................................19 4.3 Payment for Operation and Maintenance..............................................................19 4.4 Charges Based on Flow, Strength and Fixed Capacity: Exception.......................19 4.5 Monitoring Flow and Strength...............................................................................21 5. FINANCE, BUDGETING, AND ACCOUNTING: SYSTEM OF CHARGES...............22 5.1 Charges Authorized...............................................................................................22 5.2 Functional Allocated Billing (FAB)......................................................................22 5.3 Metro System Costs...............................................................................................23 5.4 Excluded Costs ......................................................................................................23 5.5 Metro System Revenues and Allocations..............................................................23 5.6 Excluded Revenue.................................................................................................24 5.7 Estimate and Billing Schedule and Year End Adjustment....................................24 5.8 Financial Statements..............................................................................................25 5.9 Debt Financing.......................................................................................................25 5.10 Allocation of Operating Reserves and Debt Service Coverage.............................26 5.11 Amending the System of Charges .........................................................................26 10-23-25 4907-3419-6844 6. FINANCE, BUDGETING, AND ACCOUNTING: PURE WATER PROGRAM COST ALLOCATION AND REVENUES – PHASE 1 ..............................................................26 6.1 North City Water Reclamation Plant Modification...............................................26 6.2 New, Expanded or Modified Metro System Facilities ..........................................26 6.3 Costs Excluded from Metro System Costs – Phase 1............................................26 6.4 North City Water Reclamation Plant Improvement Costs Included as Metro System Costs..........................................................................................................27 6.5 Reallocation of PWP Costs incurred since FY 2014.............................................27 6.6 Revenue Sharing for Repurified Water .................................................................28 6.7 Capital Expense Rate.............................................................................................30 6.8 Amending Pure Water Program Cost Allocation and Revenues – Phase 1...........32 7. FINANCE, BUDGETING, AND ACCOUNTING: PURE WATER PROGRAM COST ALLOCATION AND REVENUES – PHASE 2 ..............................................................32 7.1 Pure Water Program – Phase 2..............................................................................32 7.2 Costs Excluded As Metro System Costs ...............................................................32 7.3 Revenue Sharing for Repurified Water – Phase 2.................................................33 7.4 Capital Expense Rate – Phase 2.............................................................................33 8. FUTURE NEGOTIATIONS AND COOPERATION ......................................................34 9. THE METRO COMMISSION..........................................................................................34 9.2 Advisory Responsibilities of Metro JPA...............................................................34 9.3 Delegation of Decision-Making Authority of the Metro JPA...............................35 9.4 Standing.................................................................................................................35 10. DISPUTE RESOLUTION.................................................................................................35 10.1 Mandatory Non-Binding Mediation......................................................................35 10.2 Selection of Mediator ............................................................................................35 10.3 Mediation Expenses...............................................................................................35 10.4 Conduct of Mediation............................................................................................35 10.5 Mediation Results..................................................................................................36 10.6 Performance Required During Dispute .................................................................36 11. INSURANCE ....................................................................................................................36 11.1 City Shall Maintain All Required Insurance .........................................................36 11.2 Substantially Equivalent Coverage........................................................................36 12. INTERRUPTION OF SERVICE ......................................................................................36 13. NOTICES REQUIRED UNDER AGREEMENT.............................................................37 14. EFFECTIVE DATE AND EXPIRATION........................................................................37 14.1 Effective Date........................................................................................................37 14.2 Expiration ..............................................................................................................37 14.3 Contract Capacity Rights Survive Expiration........................................................37 14.4 Abandonment.........................................................................................................38 10-23-25 4907-3419-6844 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 - 1 - 10-23-25 4907-3419-6844 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 - 2 - 10-23-25 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 - 3 - 10-23-25 4907-3419-6844 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 - 4 - 10-23-25 4907-3419-6844 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 - 5 - 10-23-25 4907-3419-6844 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. - 6 - 10-23-25 4907-3419-6844 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. - 7 - 10-23-25 4907-3419-6844 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. - 8 - 10-23-25 4907-3419-6844 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. - 9 - 10-23-25 4907-3419-6844 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. - 10 - 10-23-25 4907-3419-6844 2.2.2 The City shall operate the Metro System in an efficient and economical manner, maintaining it in good repair and working order, all in accordance with recognized sound engineering and management practices. 2.2.3 The City shall convey, treat, and dispose of or reuse all wastewater received under this Agreement in such a manner as to comply with all applicable laws, rules and regulations. 2.3 Flow Commitment. 2.3.1 Subject to the provisions of this Agreement and absent a separate agreement of the Parties, all Flow within the capacity limits set forth in Exhibit B or any amendments or changes thereto shall remain in the Metro System. 2.3.2 This Agreement shall not preclude any Party from diverting Flow as a result of the construction of reclamation/reuse facilities or New Capacity outside of the Metro System. 2.3.3 Any Participating Agency may negotiate an agreement with the City to reduce all or part of their Contract Capacity. If a Participating Agency reduces its Contract Capacity to zero, that Participating Agency’s rights shall terminate under this Agreement and that Participating Agency shall no longer be considered a member of the Metro JPA. However, the agreement between the City and Participating Agency shall provide that the Participating Agency pays its proportionate share of Capital Improvement Costs for the remainder of the useful life of the facility(ies) constructed during the time the Participating Agency possessed Contract Capacity in the Metro System. This shall include, but is not limited to, any remaining portions of outstanding debt that was incurred for capital facilities during the time the Participating Agency had the right to send Flow into the Metro System, and the cost to disconnect the Participating Agency’s system from the Metro System. Any Contract Capacity that a Participating Agency chooses to relinquish under this section shall be treated as Pooled Capacity after the effective date of an agreement between the City and that Participating Agency. This section does not apply to Inter-Agency transfers of Contract Capacity, which involve the relinquished Contract Capacity being assigned to and assumed by another Participating Agency or the City. Inter-Agency transfers are governed by Section 3.2 2.3.4 Flow Projections. Currently, the Projected Future Strength and Flow Amounts are projected to the year 2050 in order to allow the Parties time to plan for future development and growth. However, these projections may be amended from time to time through the Exhibit B amendment processes in this Agreement to more fairly align with actual flow and strength data. The parties shall begin discussion to recalculate the Projected Future Strength and Flow Amounts set forth in Exhibit B by no later than January 1, 2040. 2.4 Funding Obligations. The City shall fund the acquisition, construction, maintenance and/or operation of the Metro System from monies in (or sewer revenues which populate) the Sewer Revenue Fund for the Metro System, and/or from construction funds derived from the sale of duly authorized sewer revenue bonds for the Metro System. Nothing in this Section or Agreement shall (i) obligate the City to make any payment for the acquisition, construction, maintenance or operation of the Metro System from monies derived from taxes or any other income or revenue of the City; (ii) be construed to obligate the City or any Participating - 11 - 10-23-25 4907-3419-6844 Agency to pay from its annual income and revenues any sum which would create an indebtedness, obligation or liability within the meaning of the provisions of Section 18 of Article XVI of the Constitution of the State of California and, in the City’s case, San Diego Charter Section 99; or (iii) prevent the City, in its discretion, from using tax revenues or any other available revenues or funds of the City for any purpose for which the City is empowered to expend moneys under this Agreement. For the avoidance of doubt, subsections (i) and (ii) shall not relieve the City from its obligations to fund the Metro System as provided in this Section 2.4. 2.5 Limitations on Types and Condition of Wastewater. 2.5.1 Each Participating Agency shall minimize to the maximum extent practicable, the infiltration and inflow of surface, ground or stormwaters into its respective wastewater systems. 2.5.2 Each Participating Agency will ensure that all Industrial Users of its wastewater system are regulated by and comply with the City’s industrial pretreatment program. City shall not require the Participating Agencies to take any actions against such Industrial Users beyond that which are (1) required under applicable laws, rules and regulations, (2) taken by the City, or (3) that can be taken, but are not being taken by the City. 2.5.3 City and the Participating Agencies agree that the Interjurisdictional Pretreatment Agreements executed by and between the City and each Participating Agency, as applicable, shall terminate effective upon the date of this Agreement. However, the separate transportation agreements that are currently in effect between or among the City and the Participating Agencies shall remain in effect in accordance with their terms. Each Participating Agency will not discharge wastewater originating outside its respective boundaries into the Metro System without the approval of the City, which shall not be unreasonably withheld. 2.5.4 Each Participating Agency shall be responsible for the violation of any applicable laws, rules or regulations associated with its respective discharge of wastewater into the Metro System. Nothing in this Agreement shall affect or prohibit the ability of any Participating Agency to hold third parties responsible for such violations. However, City shall be responsible for enforcement actions related to the violation of any applicable laws, rules, or regulations associated with industrial waste dischargers regulated by City, though each Participating Agency shall collaborate with City when necessary, on any enforcement response for pretreatment violations within a Participating Agency’s jurisdiction. However, the City shall not be responsible for enforcement or monitoring related to a Participating Agency’s compliance with its own NPDES Permit. 2.5.5 Food establishments and dischargers of fats, oils, and grease (FOG) are regulated and monitored by individual Participating Agencies within their jurisdiction. Participating Agencies are responsible for the provision of FOG programs, services, and enforcement within their jurisdiction. The City will not provide FOG-related services or programs outside of the City’s jurisdiction. 2.6 Enforcement Actions. In the event a regulatory agency, imposes any penalty or fine, or takes other enforcement action, or a private citizen brings a citizen enforcement action to enforce - 12 - 10-23-25 4907-3419-6844 regulatory requirements, (collectively, “Enforcement Actions”) relating to the conveyance, treatment, or disposal of wastewater in or from the Metro System or operation of the Metro System, the City shall determine as part of its investigation and response to the notice of violation whether the City or a Participating Agency or Agencies caused or contributed to the violation for reasons which may include, without limitation, exceeding their Contract Capacity, the contents of their wastewater, or the failure to maintain or operate the Metro System or a Participating Agency’s system. Any costs associated with an Enforcement Action including but not limited to fines, penalties, corrective measures, and costs of defense (collectively, “Penalty(ies)”) shall be shared by the Participating Agencies and the City proportionately based on Fixed Capacity as set forth in the then current Exhibit B, unless the City determines, based on verifiable facts, that the violation for which the Penalty is imposed was caused by, or was the result of, gross negligence or willful misconduct of the City or a Participating Agency. 2.6.1 For any Enforcement Actions (1) related to sanitary sewer overflows of 10,000,000 gallons or more from the Metro System occurring after the effective date of this Agreement, or (2) that the City reasonably anticipates will result in the Participating Agencies’ collective responsibility for the Penalties imposed to exceed 10% of the Metro Participating Agencies combined annual operations and maintenance budget for the Metro System for the fiscal year in which the Penalty is imposed (“Threshold Amount”), the City’s determination will be subject to review by the Metro JPA as set forth in 2.6.1.1 through 2.6.1.8 below. The scope of the Metro JPA’s review shall be limited to whether the violation for which the Penalty is imposed was caused by, or was the result of, gross negligence or willful misconduct of the City or a Participating Agency, and if so, how the Penalty should be fairly allocated. For all other Enforcement Actions, the City’s determination related to the allocation of Penalty shall be final. 2.6.1.1 The City will provide a copy of any report submitted to a regulatory agency in response to an Enforcement Action to the Metro JPA within 30 days of submitting that report to the regulatory agency. In that same communication, the City will also provide a summary of the City’s findings regarding causation and preliminary determination regarding the allocation of any Penalties. If these determinations have not been made, the City will provide an anticipated date that the information will be provided. 2.6.1.2 If the Metro JPA disputes the City’s determination as to the allocation, as evidenced by a vote approved by two-thirds of the Metro JPA Directors present at a duly noticed meeting, it shall notify the City in writing of the same within 90 days of receiving the City’s preliminary allocation determination. 2.6.1.3 The City and representatives of the Metro JPA shall meet and confer to discuss the matter and try to reach an agreement on the appropriate allocation. To facilitate resolution, the meet and confer process shall be treated as a settlement discussion under the California Evidence Code and shall be a confidential process. The meet and confer process shall focus on whether the violation for which the Penalties are being imposed is the result, in whole or in part, of the gross negligence or willful misconduct of the City or a Participating Agency, and if so, how the Penalties shall be allocated. 2.6.1.4 If through the meet and confer process, the City determines that the Participating Agencies’ collective responsibility for the Penalties imposed will be less than the - 13 - 10-23-25 4907-3419-6844 Threshold Amount, then the City will inform the Metro JPA of this determination and allocate the Penalty as such, and no further action by the Metro JPA is required. 2.6.1.5 If through the meet and confer process, the City and representatives of the Metro JPA reach an agreement, and the Participating Agencies’ collective responsibility for the Penalties imposed will be equal to or greater than the Threshold Amount, then that agreement shall be subject to the Two-Party Approval process. The City and representatives of the Metro JPA shall have an opportunity to present the proposed agreement to the Metro JPA before a vote on the determination. 2.6.1.6 If the City and representatives of the Metro JPA are unable to reach an agreement and Participating Agencies’ collective responsibility for the Penalties imposed is equal to or exceeds the Threshold Amount, the City will make a final determination regarding allocation of the Penalty and present the determination to the Metro Commission. 2.6.1.7 In the event that Two Party Approval is required but is not achieved, each Participating Agency shall pay the portion of the Penalty allocated to them at the time that it is invoiced, however, such payment may be made under protest. The Parties shall engage in the dispute resolution procedures under this Agreement to resolve the issue, prior to any Party having the right to initiate litigation. 2.6.1.8 Penalties in excess of the Threshold Amount shall be separated out in the reconciliation billing and notated as a spill penalty with reference to the first day of the spill associated with the penalty. 2.7 Right of First Refusal. 2.7.1 The City shall not sell or agree to sell the Metro System without first offering it to the Participating Agencies. For the purposes of this section, “Participating Agencies” shall mean a Participating Agency, a group of Participating Agencies, or a third party representing one or more Participating Agencies. The term “sell” shall include any transfer or conveyance of the Metro System or of any individual treatment, collection, or reclamation facility or outfall within the Metro System. 2.7.2 The City and the Participating Agencies recognize that transfer of ownership of the Metro System is currently restricted by Sections 6.04 and 6.20 of the Installment Purchase Agreement between the City and the Public Facilities Financing Authority of the City, which inter alia restricts the transfer of ownership to the Metropolitan Wastewater Sewage District or other governmental agency whose primary purpose is to provide wastewater treatment. The City shall not seek to impose on bond holders a waiver of Section 6.04 or 6.20. Absent such a restriction, before the City sells or agrees to sell the Metro System, or any portion of it, the City shall offer to sell the Metro System to the Participating Agencies (the “Offer”) on the terms and at a price equal to that proposed for the sale of the Metro System to a third party. The City shall provide all Participating Agencies with written notice of the Offer per Section 13 . The Participating Agencies shall have ninety (90) days from the date of mailing of the Offer (the “Intent to Respond Period”) in which to notify the City of their intent to respond to the Offer. If a Participating Agency or Agencies notify the City of their intent to respond to the Offer, that Participating Agency or those - 14 - 10-23-25 4907-3419-6844 Agencies shall have five months from the expiration of the Intent to Respond Period in which to accept or reject the Offer. The Offer shall contain the name of the proposed purchaser, the proposed sale price, the terms of payment, the required deposit, the time and place for the close of escrow, and any other material terms and conditions on which the sale is to be consummated. If no Participating Agency or Agencies notifies the City of its (or their) intent to respond to the Offer within the Intent to Respond Period, the City may move forward with the sale of the Metro System without further notice to the Participating Agency in accordance with Section 2.7.3 below. 2.7.3 If the Participating Agencies give timely notice of their intent to respond and timely notice of their acceptance of the Offer, then the City shall be obligated to sell and the Participating Agencies shall be obligated to purchase the Metro System or any individual treatment, collection or reclamation facility or outfall within the Metro System, as applicable, at the price and on the terms and conditions of the Offer. If the Participating Agencies do not give timely notice of their intent to respond or their acceptance of the Offer, or do not submit an offer on the same terms and conditions as the Offer, the City may, following the end of the Offer period, sell the Metro System, or any portion of it, at a price and on terms and conditions no less favorable to the City than those in the Offer. The City shall not sell the Metro System to any third party on terms or at a price less favorable to the City from the terms and price contained in the Offer absent compliance with the terms of this Section. The City’s sale of the Metro System under Section 2.7, is a transfer of ownership subject to Section 2.1.3. 2.7.4 Nothing herein shall prevent the City from entering into a financing agreement which may impose limits on the City’s power to sell the Metro System to the Participating Agencies pursuant to Section 2.7.1 if the City reasonably believes that such a financing agreement is in the City’s best interest. Neither the entry into such a financing agreement by the City nor the performance thereof by the City shall constitute a breach or default by the City hereunder. 2.8 Uniform Enforcement of Pretreatment Program by City. The Parties have determined that it is in their best interests for a single agency to be responsible for management of the pretreatment program for the Metro System in order to: (a) Ensure protection of the entire Metro System, including the successful operation of the Pure Water Program; (b) Provide consistent and uniform regulation of Industrial Users, including those subject to pretreatment requirements; (c) Provide for transparent and fair cost recovery from all dischargers; and (d) Promote efficiency and accountability in the administration of the Metro System. For these reasons, the Parties are delegating pretreatment responsibilities to the City, except regulation of Food Establishments and FOG dischargers, as more fully set forth in this Agreement and in Administrative Agreement #1 Between City of San Diego and Participating Agencies for the Unified Management of Industrial Waste Discharge Pretreatment and Enhanced Source Control Programs (“Administrative Agreement #1”). Notwithstanding the above, the City may enter into supplementary agreements with an individual Participating Agency, or a group of Participating Agencies, relating to industrial waste discharge pretreatment and enhanced source control programs unique to such Participating Agency(ies), so long as the supplementary agreement incorporates a separate cost proportional to the participation of such Participating Agency or group of Participating Agencies that is the sole responsibility of such Participating Agency(ies). - 15 - 10-23-25 4907-3419-6844 2.8.1 Delegation of Authority. Each Participating Agency shall and hereby does delegate to City full authority and responsibility to operate, manage, and enforce an effective pretreatment program throughout the Metro System to ensure that all Industrial Users are subject to uniform rules and regulations, with direct billing to Industrial Users by the City to begin on the first July 1 following execution of this Agreement. 2.8.2 Operations and Maintenance. Procedures relating to the operation, management, enforcement, and cost recovery for the pretreatment program are set forth in Administrative Agreement #1. 2.8.3 Amending Pretreatment Program Procedures. Administrative Agreement #1 may be amended from time to time as set forth in Section 15. In the event of any conflict between this Agreement and Administrative Agreement #1, the terms of this Agreement shall control. 2.8.4 Adoption of Local Ordinances. By no later than June 30 following the Effective Date of this Agreement, every Participating Agency shall adopt a local ordinance conforming with the sample ordinance contained in Administrative Agreement #1 and the City’s pretreatment ordinance, each as amended from time to time, to ensure consistency throughout the Metro System. 2.8.5 Identification of New Industrial Users. Participating Agencies shall notify the City of any identified potential new Industrial Users within their respective boundaries while the City will bear responsibility for inventory assessments on a regular basis as set forth in Administrative Agreement #1. 2.8.6 Permitting and Permit Compliance. Nothing in this Agreement shall be construed to relieve any discharger to the Metro System of the responsibility to obtain and comply with any required permits for, and to comply with rules and regulations applicable to, dischargers to the Metro System. If the City determines that an Industrial Wastewater Control Program Permit is required, it shall issue the permit subject to the City’s permit requirements. The City’s approval or denial of any application for, or revocation of, an Industrial User Permit shall be in accordance with Chapter 6, Article 4 of the San Diego Municipal Code as well as any other applicable federal, state or local regulations, any published City guidance related to the Industrial Wastewater Control Program, and the City’s Enforcement Response Plan, all as may be amended, renumbered, or renamed from time to time. The City and any Participating Agency may elect to coordinate and combine issuing their wastewater discharge permits to Industrial Users when deemed appropriate by both parties. Any agreement between the City and the Participating Agencies related to permitting under the Industrial Wastewater Control Program, shall not transfer responsibility to City for any other type of permitting outside of the City’s jurisdiction, or subject any local agency as that term is defined in California Government Code section 53090, to local building and zoning ordinances that the local agency is not otherwise legally subject to. 2.8.7 Inventory of Industrial Users. City shall create and maintain an inventory of all Industrial User within the Metro System as soon as reasonably practicable following execution of this Agreement. The Participating Agencies shall review the inventory and shall notify the City - 16 - 10-23-25 4907-3419-6844 of an Industrial User(s) in its jurisdiction that is not identified on the inventory as set forth in Administrative Agreement #1. 2.8.8 Evaluation, Monitoring, Enforcement and Program Review. Upon the effective date of this Agreement, it shall be the City’s right and obligation to carry out pretreatment evaluation, permitting, monitoring and/or enforcement throughout the Metro System consistent with the procedures set forth in Administrative Agreement #1. The City’s pretreatment program review shall occur as necessary, but no less than once every five (5) years. Nothing herein shall be construed as prohibiting any Participating Agency from enforcement of its own pretreatment ordinance within its jurisdiction. 2.8.9 City’s Direct Billing of Industrial Users. The City shall directly bill Industrial User throughout the Metro System to recover costs associated with the pretreatment program as set forth in Administrative Agreement #1. The City Council shall set and approve such costs in a publicly noticed meeting pursuant to the procedures set forth in Administrative Agreement #1. 2.9 Wastewater Generated at Military Bases. The City may contract directly with federal military bases that are connected to the Metro System for wastewater services and capacity subject to the terms of this Section 2.9. If a United States military base is located within a Participating Agency’s jurisdiction, the Participating Agency may request that the City bill that military base directly as a separate and distinct customer. In the event the City agrees to accept the military’s wastewater and bill the military base as a separate and distinct customer, then (1) the Participating Agency shall have no billing obligations with respect to the military base; (2) each Participating Agency whose sewage line conveys the military base’s wastewater reserves the right to negotiate and charge the federal government a conveyance or transportation fee for use of that Participating Agency’s sewer line; (3) the City shall require that the military base comply with the applicable City pretreatment rules; and (4) the City agrees that the wastewater generated by the military base shall not be considered wastewater of the Participating Agency with respect to capacity once the City enters into an agreement with the military base. Any transfers of capacity that are appropriate or necessary to accommodate flow from military bases, if needed, would be governed by Section 3.2 herein, “Inter-Agency Transfers of Contract Capacity.” 3. CAPACITY RIGHTS 3.1 Contract Capacity. Each Participating Agency shall have the contractual right to discharge wastewater to the Metro System up to the limits set forth in Exhibit B (“Contract Capacity”). Each Party’s Contract Capacity as stated in Exhibit B, is used for the purpose of allocating the Metro System’s Pure Water Program Capital Improvement Costs, Repurified Water Revenue, and the Capital Expense Rate under this Agreement. 3.2 Inter-Agency Transfers of Contract Capacity. The Participating Agencies and the City may buy, transfer, sell or exchange all or part of their Contract Capacity among themselves on such terms as they may agree upon, subject to the following: 3.2.1 Any Party requesting to buy, transfer, sell, or exchange all or part of their Contract Capacity (“Inter-Agency Transfer”) shall provide a written proposal to the City - 17 - 10-23-25 4907-3419-6844 including the proposed terms of such Inter-Agency Transfer. The Party requesting the Inter- Agency Transfer shall also provide notice to all other Participating Agencies under Section 13 concurrently with submitting the proposal to the City. 3.2.2 All Participating Agencies will have 45 days to provide any technical input to the City regarding the proposed Inter-Agency Transfer. Any Participating Agency providing technical input shall provide a copy of such input to all other Participating Agencies under Section 13 concurrently with submitting the input to the City. 3.2.3 Upon receipt of a request for an Inter-Agency Transfer, the City will review the request, consult with the affected Participating Agencies, and consider any technical input provided by other Participating Agencies. 3.2.4 All proposed purchases, transfers, sales or exchanges of Contract Capacity require the City’s Administrative Approval prior to becoming effective. No Contract Capacity may be transferred if the City determines that said transfer will imbalance, or will otherwise adversely impact the City’s ability to operate the Metro System. Provided, however, that the Participating Agency seeking the transfer may offer to cure such imbalance at its own expense. If the Participating Agency makes such an offer, the City may not unreasonably withhold Administrative Approval. 3.2.5 If the City approves the offer as proposed, the City shall adjust the Contract Capacity set forth in Exhibit B per Section 3.6 to reflect the approved changes. If the City determines, after taking the steps in Section 3.2.3 that an Inter-Agency Transfer may be approved if the request is modified, the City will provide a written notice to all Participating Agencies of the modified Inter-Agency Transfer under Section 13 no less than 30 days prior to the Inter-Agency Transfer becoming effective. Such modified Inter-Agency Transfer will become effective 30 days following the written notice being provided, and the City will prove an updated Exhibit B per Section 3.6 reflecting the approved changes. 3.2.6 If a Participating Agency reduces its Contract Capacity to zero through an Inter-Agency Transfer, that Participating Agency’s rights under this Agreement shall terminate and that Participating Agency shall no longer be a member of the Metro JPA. The Participating Agency shall remain responsible for all outstanding financial obligations under this Agreement, unless the Inter-Agency Transfer Agreement assigns those obligations to the Participating Agency accepting the transfer and that agency assumes those obligations. Outstanding financial obligations include, but are not limited to, a Participating Agency’s proportionate share of Capital Improvement Costs for the remainder of the useful life of the facility(ies) constructed during the time the Participating Agency possessed Contract Capacity in the Metro System, including any remaining portions of outstanding debt incurred for capital facilities during the time the Participating Agency had the right to send Flow into the Metro System, and the cost to disconnect the Participating Agency’s system from the Metro System. 3.3 New Contract Capacity. The Parties recognize that the Metro System may be modified to create capacity in the Metro System beyond that set forth in Exhibit B as a result of the construction of additional facilities, acquisition of facilities, increased flows, or as required by regulatory or similar such action. If capacity in excess of the Contract Capacity (“New Contract - 18 - 10-23-25 4907-3419-6844 Capacity”) is required or requested by a Party, the Parties shall negotiate in good faith to provide the needed or requested capacity. If the Parties agree to provide New Contract Capacity, they shall memorialize the agreement for New Contract Capacity in an Administrative Agreement subject to the Joint Administrative Approval Process set forth in Section 15. If the parties execute an Administrative Agreement for New Contract Capacity, Exhibit B shall also be adjusted pursuant to Section 3.6 to reflect the New Contract Capacity. 3.4 Reductions in Metro System Capacity. The Parties further recognize that Metro System Capacity may be reduced to comply with, or in response to, applicable permit conditions, or related regulatory action, or sound engineering principles. In the event that the capacity of the Metro System is re-rated to levels below the numbers reflected in the Totals Line set forth in Exhibit B, then the Contract Capacity shall be reallocated proportionately among the Parties based on the percentages of fixed ownership set forth in Exhibit B at that point in time, subject to the City’s Administrative Approval and amendment of Exhibit B. 3.5 Restrictions on Veto of Transfers and Acquisitions of Capacity. Each Party understands and agrees that no Participating Agency has a right to veto or prevent the transfer of capacity between other Participating Agencies or the City, nor the creation or acquisition of new capacity for another Participating Agency or Agencies. By signing this Agreement, each Participating Agency is expressly preapproving such actions. The sole right of a Participating Agency to object to any of the foregoing shall be through expression of its opinion to the Metro JPA and, where applicable, through exercise of its rights under the dispute resolution provisions of this Agreement. 3.6 Amendments to Exhibits B. If the City determines that an amendment to Exhibit B is required for any reason other than a request from a Participating Agency under Sections 2.3.3 and Sections 3.2, and that reason only requires the City’s Administrative Approval, the City shall prepare and circulate to all Participating Agencies the proposed amendment to Exhibit B within 60 days of determining such an amendment is necessary. The Participating Agencies will have sixty (60) days to provide comments to the City, and all comments submitted to the City by a Participating Agency shall also concurrently be submitted to all other Participating Agencies. The City will review all comments received, prepare final amendments to Exhibit B to reflect adjustments in Contract Capacity, and circulate the final amended Exhibit B by no later than sixty (60) days after the City’s Administrative Approval. If the amendment to Exhibit B requires an approval process other than the City’s Administrative Approval, the Parties will follow the required approval process, and once that is completed, the City will prepare and provide the final version of Exhibit B within 60 days of the completion of the approval process. The City shall note each amendment and amendment date in the Exhibit List and shall keep an updated version of Exhibit B on file with the City Public Utilities Department at all times. An amendment to Exhibit B shall not be retroactive, except as provided in Section 4.4.3.3. 3.7 The South Bay Ocean Outfall. Nothing in this Agreement shall limit the City’s right to transfer capacity rights in assets that are not a part of the Metro System, including without limitation that portion of the South Bay Ocean Outfall which is not part of the Metro System. - 19 - 10-23-25 4907-3419-6844 4. FINANCE, BUDGETING, AND ACCOUNTING: PAYMENT AND MONITORING PROVISIONS 4.1 Payment for Metro System Facilities. Through the system of charges set forth in Section 5 of this Agreement, each Participating Agency shall pay its share of the costs of planning, design and construction of all of the Metro System facilities which are identified in Exhibit A . 4.2 Payment for Additional Metro System Facilities. Through the system of charges set forth in Section 5 of this Agreement, each Participating Agency shall pay its share of the costs of acquisition, planning, design and construction of such facilities, in addition to those set forth on Exhibit A, as are necessary to (a) convey, treat, dispose, and reuse wastewater in the Metro System; (b) provide the Contract Capacity set forth in Exhibit B; and (c) maintain hydraulic capacity as otherwise required by sound engineering principles. Each Participating Agency shall pay its share of the costs necessary to ensure the Metro System maintains compliance with applicable laws, rules and regulations, including the Ocean Pollution Reduction Act of 1994 and its successor(s), as well as present and future waivers of applicable treatment standards at any Metro System treatment facility. Exhibit A may be amended to reflect replaced or rehabilitated facilities, or changes in facilities, subject to the City’s Administrative Approval; however, if the City proposes to add a new Metro facility to Exhibit A, or convert a City facility to a Metro facility that will be added to Exhibit A, then each such amendment shall be (1) subject to the City’s Administrative Approval, in its sole discretion, when the addition or conversion is for the purpose of complying with applicable laws, rules, or regulations; or (2) supported by an independent third-party study setting forth the benefits to the Metro System of each new facility, including a cost allocation for capital and projected annual maintenance costs if the addition or conversion is for any other purpose. For any new Metro facility or conversion of a City facility to a Metro facility proposed to be added or converted under (2) above, any such proposal must be memorialized in an Administrative Agreement subject to the Joint Administrative Approval Process set forth in Section 15. Once approved, the City shall amend Exhibit A accordingly and shall give notice of any amendments to all Participating Agencies. The City shall keep an updated version of Exhibit A on file with the City Public Utilities Department. Exhibit A may be amended to reflect other changes to the Metro System only as expressly provided in this Agreement. 4.3 Payment for Operation and Maintenance. Through the system of charges set forth in Section 5 of this Agreement, each Participating Agency shall pay its share of the Operation and Maintenance Costs of all Metro System facilities. The Participating Agencies shall not pay for the Operation and Maintenance Costs of the Water Repurification System, which are City Water Utility PW Costs. 4.4 Charges Based on Flow, Strength and Fixed Capacity: Exception. 4.4.1 Except as otherwise described in this Section 4.4, a Participating Agency’s share of the charges in this Section 4 shall be based on its proportionate Flow, Strength, and Fixed Capacities as set forth in Exhibit B, as described more fully in Section 5. 4.4.2 Notwithstanding Section 4.4.1, or any other provision of this Agreement, a Participating Agency’s share of PWP Phase 1 Capital Improvement Costs, PWP Phase 1 Repurified Water Revenue, and Pure Water Program Capital Expense Rate attributable to the - 20 - 10-23-25 4907-3419-6844 Metro System as described in Sections 6.6 and 6.7 shall be assessed or credited based on the Parties’ proportionate share of the Pure Water Capital Melded Percentages set forth in Column 7 of Exhibit B. The City shall annually allocate the estimated and actual PWP Phase 1 Capital Improvement Costs and revenues which are attributable to the Metro System in proportion to each Party’s Pure Water Capital Melded Percentages as set forth in Column 7 of Exhibit B when estimating quarterly payments and conducting year-end adjustments. 4.4.3 Each Party recognizes that operation within respective Projected Future Strength and Flow Amounts is essential to the accurate allocation of costs and revenues under the Pure Water Program. In recognition of same, the Parties agree as follows: 4.4.3.1 Contract Capacity Transfers – Increases in Fixed Capacity Components. Beginning in the next fiscal year after the effective date of this Agreement, if a Party exceeds their Capacity Rights or any individual component of the Capacity Rights set forth in Exhibit B, by any one of the following triggers based upon data available at the completion of a fiscal year: (1) Three percent (3%) in a fiscal year for any two consecutive fiscal years, (2) One MGD in a fiscal year for any two consecutive fiscal years, or (3) The equivalent Strength of one MGD in a fiscal year for any two consecutive fiscal years; then, the City shall prepare an amendment to Exhibit B that reflects a Contract Capacity Transfer for that Party based on the available information about such Party’s exceedance(s) and the methodology set forth in Exhibit E. After Phase 2 is completed, if, due to contract capacity transfers or reductions in capacity, the Pooled Capacity drops to less than two percent (2%) of the total Contract Capacity, a capacity study shall be initiated to evaluate existing facilities for new capacity. The City shall thereafter amend Exhibit B under the process set forth in Section 3.6 to reflect the new Contract Capacity for all Parties. Any changes to the methodology in Exhibit E shall be made pursuant to an Administrative Agreement subject to the Joint Administrative Approval Process described in Section 15. 4.4.3.2 Contract Capacity Transfers – Decreases in Fixed Capacity Components. Beginning in the next fiscal year after the effective date of this Agreement, if a Party can show through an independent report that its Monthly Average Daily Flow, annual average pounds per day of COD, annual average pounds per day of TSS, Incremental Peak Flow, or RSDP is projected to decrease ten percent (10%) or more below their Projected Future Strength and Flow Amounts using data from a minimum of three (3) consecutive prior fiscal years as support, then City shall prepare a proposed amendment to Exhibit B that reflects the new Projected Future Strength and Flow Amounts for all Parties based on such Party’s decrease and other relevant information using sound engineering principles and the guidelines set forth in Exhibit E. The City’s proposed amendment shall be subject to the Two-Party Approval Process. If approved, the City shall thereafter amend Exhibit B using the process set forth in Section 3.6. 4.4.3.3 If Exhibit B is amended to update one or more Parties’ Projected Future Strength and Flow Amounts pursuant to Section 4.4.3.1 or 4.4.3.2, the change in Projected Future Strength and Flow Amounts shall be effective retroactively to the beginning of that fiscal year, and the City shall use the updated amounts in estimating quarterly payments and conducting year-end adjustments for Pure Water Program costs and revenues. Therefore, any Party that underpaid based on prior Exhibit B Fixed Capacity amounts (which were based on prior Projected Future Strength and Flow Amounts) shall pay the retroactive amount due in quarterly installments - 21 - 10-23-25 4907-3419-6844 in its quarterly payments the following fiscal year; any Party that overpaid based on previous Exhibit B Fixed Capacity amounts shall receive a credit in quarterly installments in its quarterly payments the following fiscal year. Notwithstanding the preceding sentence, if the retroactive amount due exceeds 20% of a Party’s average annual Metro System payments for the previous four (4) fiscal years, such Party may elect to pay the retroactive amount due in its quarterly payments over the subsequent four (4) fiscal years, with interest, based on the most recent quarterly earnings rate of the City’s Treasurer’s Pooled Rate of Return; any Party that overpaid in an amount that exceeds 20% of their annual average Metro System payments for the previous four (4) fiscal years based shall receive a credit in its quarterly payments spread over the following four (4) fiscal years. 4.5 Monitoring Flow and Strength. 4.5.1 The City shall monitor Flow and Strength. The City shall own and operate as part of the Metro System monitoring devices which will measure the amount of Flow discharged into the Metro System, unless otherwise agreed by the City and a Participating Agency. These devices shall be installed at locations appropriate to accurately monitor Flow and Strength. The City may also monitor Flow and Strength at other locations as it deems appropriate. For all currently unmetered areas, unit counts or agreed upon flow estimates where unit counts are not appropriate shall be used. For adding or subtracting unit count areas, the average current Metro Flow per unit shall be used consistently for all Parties. These unmetered unit counts will be updated at least once every five (5) years. If the flow in an unmetered area is over 0.5 MGD at a specific connection point, then a meter shall be added for that area, if possible. Exhibit F provides the Flow formulas that shall be used to determine the payment obligation for each Party, or a grouping or subgrouping of Parties, as applicable. Exhibit F shall be distributed to all Parties with the budget estimates that are sent annually pursuant to Section 5.7.1. The City currently provides all Participating Agencies with access to their data from the Flow metering devices, including providing access to their raw data, and will continue to do so according to the Parties’ established practices on the Effective Date of this Agreement. Changes to Exhibit F may be made upon the City’s Administrative Approval. 4.5.2 In measuring Strength, the frequency and nature of the monitoring shall not be more stringent for the Participating Agencies than it is for the City. The frequency, nature, and locations of Strength measurements, as well as the procedures used to determine Strength, shall be reviewed at least once every five (5) years and if changes are appropriate or required, the City may change the Strength measurements subject to the Two-Party Approval process. When conducting sampling within a Participating Agency’s service area, the City shall follow appropriate safety and security measures. The City and Participating Agencies will coordinate with the Participating Agency’s operations staff to ensure facilities are not negatively impacted by inspections. 4.5.3 The City shall report Strength data to the Participating Agencies at least quarterly. 4.5.4 The City shall notify the Metro JPA’s Executive Director and any directly affected Participating Agency within 24 hours of any unpermitted or unlawful discharge or release of effluent from the Metro System which may be reportable to the Regional Board, or any other regulatory agency, and which may result in civil or criminal penalties or administrative - 22 - 10-23-25 4907-3419-6844 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. - 23 - 10-23-25 4907-3419-6844 5.2.1.5 Costs for capital improvements, capital replacement, and rehabilitation costs including financing shall be based on the approved Functional-Design Methodology and the Contract Capacity in Exhibit B. 5.2.1.6 The net cost allocated to each of the parameters shall be divided by the total Metro System quantity for that parameter to determine the unit rates for each parameter. These unit rates shall apply uniformly to all Parties. 5.3 Metro System Costs. The following shall at a minimum be considered Metro System Costs for purposes of calculating the annual FAB rate: 5.3.1 Except as provided in Section 5.4 (Excluded Costs), the annual Operation and Maintenance Costs and annual costs associated with administration, replacement, annual debt service costs and other periodic financing costs and charges, capital improvement, insurance premiums, claims payments and claims administration costs of the Metro System, including projected overhead, shall be calculated using generally accepted accounting practices to reflect the costs of the Metro System. 5.3.2 Fines or penalties imposed on the City as a result of the operation of the Metro System, unless the fine/penalty is allocated to the City or a Participating Agency as provided in Section 2.5.5. 5.4 Excluded Costs. The following items shall not be considered Metro System Costs for purposes of calculating the annual FAB rate: 5.4.1 Costs related to the City of San Diego’s municipal sewer, water (including City Water Utility PWP Costs), and/or stormwater systems as determined by City’s reasonable calculations consistent with sound engineering and best management practices.; 5.4.2 Right-of-way charges for the use of public streets of the City or any Participating Agency. The City and the Participating Agencies agree not to impose a right-of- way charge for the use of its public rights-of-way for Metro System purposes; 5.4.3 Capital Improvement Costs or Operations and Maintenance Costs of any non-Metro System facility not included in Exhibit A, including, but not limited to, any costs associated with the ECAWP Project; 5.4.4 Those costs otherwise identified as excluded costs in Section 6.3. 5.5 Metro System Revenues and Allocations. The following revenues shall be at a minimum considered Metro System Revenues for purposes of determining the annual FAB rate: 5.5.1 Any grant or loan receipts or any other receipts that are attributable to the Metro System or Metro System components of the Pure Water Program, including, but not limited to, all compensation or receipts from the sale, lease, or other conveyance or transfer of any asset of the Metro System or Metro System components of the Pure Water Program. Any such receipts attributable to the Metro System components of the Pure Water Program shall be allocated among - 24 - 10-23-25 4907-3419-6844 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. - 25 - 10-23-25 4907-3419-6844 5.7.4 The City shall bill the Participating Agencies quarterly, invoicing on August 1, November 1, February 1 and May 1. Each bill shall be paid within thirty (30) days of mailing. Quarterly payments will consist of the total estimated cost for each Participating Agency, based on their estimated Flow, Strength, and Fixed Capacity Charges, divided by four. 5.7.5 At the end of each fiscal year, the City shall determine the actual Metro System Costs and the actual Metered Flow as well as the cumulative Strength data for the City and each of the Participating Agencies. The City shall make any necessary adjustments to the unit rates for Flow and Strength such as COD, TSS and Fixed Capacity Charges based on actual costs for the year as determined through the annual audit process in Section 5.8.2 of this Agreement. The City shall then recalculate the FAB rate for the year using actual audited costs for the year, actual Metered Flow, Residuals, MBC Return, cumulative Strength factors, and Fixed Capacity Charges for the City and for each Participating Agency. The City shall credit any future charges or bill for any additional amounts due against the quarter after the prior year costs have been audited. 5.8 Financial Statements. 5.8.1 The City shall keep records and accounts of all costs and expenses relating to conveyance, treatment, disposal, and reuse of wastewater, and production of Repurified Water, and the acquisition, planning, design, construction, administration, monitoring, operation and maintenance of the Metro System and Water Repurification System, and any grants, loans, or other revenues received therefor. The City shall keep such records and accounts for at least four (4) years after the completed audit, or for any longer period required by law or outside funding sources. 5.8.2 Annual Audit. Said records and accounts shall be subject to reasonable inspection by any authorized representative of any Participating Agency at its expense. Further, said accounts and records shall be audited annually by an independent certified public accounting firm appointed by the City. A copy of said report shall be available to any Participating Agency. As part of said audit, the actual amount of City Water Utility’s PW Costs, Pure Water Program costs attributable to the Metro System, Repurified Water Revenue, and the Capital Expense Rate shall be determined and audited by the City’s external auditors and Participating Agency representatives, and a cumulative and annual summary of such amounts shall be included as a footnote or attached to the audit of the Metro System. Cost summaries shall include separate lines for Capital Improvement Costs and Operation and Maintenance Costs. 5.8.3 The City shall make a good faith effort to complete the annual audit, and any related adjustments under this Agreement as described in Section 5.8.2, by the end of the following fiscal year. 5.9 Debt Financing. The City retains the sole right to determine the timing and amount of debt financing required to provide Metro System Facilities. The annual debt service plus in- progress Capital Improvement Costs to maintain capacity in and of the Metro System shall be allocated to the Participating Agencies consistent with the Exhibit B Contract Capacity allocations effective on the date the debt is issued. If a Participating Agency wishes to prepay Capital Improvement Costs, and the City is able to accommodate such a request, then a Participating Agency may prepay their proportional share of Capital Improvement Projects. If a Participating Agency wishes to withdraw or reduce their Flows and/or Strengths from the Metro System per - 26 - 10-23-25 4907-3419-6844 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. - 27 - 10-23-25 4907-3419-6844 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. - 28 - 10-23-25 4907-3419-6844 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: - 29 - 10-23-25 4907-3419-6844 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. - 30 - 10-23-25 4907-3419-6844 In all instances referred to in this Section 6.6.3, the Metro System portion of the Repurified Water Revenue shall be allocated among the City and the Participating Agencies consistent with Section 4.4.2. 6.6.4 Year-End Adjustment. At the end of each fiscal year during which there is Repurified Water Revenue, the City shall determine the actual cost per acre foot of CWA untreated water purchased by the City, the actual cost per acre foot of City Water Utility PW Costs, and the actual amount of Repurified Water produced at Pure Water Program facilities. Based on the actual cost and production information, the City will recalculate the Repurified Water Revenue for the prior fiscal year. The City will credit any future charges or bill for any additional amounts due the quarter after the prior year costs have been audited. 6.6.5 Change in Potable Reuse Method. The Parties acknowledge that the Pure Water Program Phase 1 will initially use indirect potable reuse surface water augmentation. The use of CWA untreated water costs in calculating Repurified Water Revenue is intended to provide an appropriate point of comparison to costs for producing Repurified Water that will be introduced into surface water. The Parties agree that if the City desires to implement direct potable reuse (in which Repurified Water would be introduced directly into a water supply pipeline or facility), the Parties shall meet and negotiate in good faith regarding an amendment to this Section 6.6, to appropriately update the formula for Repurified Water Revenue, which form of amendment shall occur via an Administrative Agreement and shall be subject to the Joint Administrative Approval Process set forth in Section 15. 6.7 Capital Expense Rate. 6.7.1 Background. The Point Loma Wastewater Treatment Plant operates under a National Pollutant Discharge Elimination System (“NPDES”) permit modified under section 301(h) & (j)(5) of the Clean Water Act. If such modified permit were ever revoked or not renewed, the Parties agree that, under current law, the City would have an obligation to upgrade the PLWTP to secondary treatment. The Parties further agree that $1.8 billion is a fair and comprehensive estimation of the costs that could be incurred by the Metro System to meet the legal requirements related to the Metro System under current law. The estimate of $1.8 billion is based on the net present value of the capital cost to develop 180 MGD of secondary treatment at PLWTP as of November 15, 2018. Therefore, the Parties agree that $1.8 billion represents the maximum amount of Capital Improvement Costs that the Metro System should be obligated to contribute to the Pure Water Program, the purpose of which is not solely the disposal of wastewater, but also the production of Repurified Water. The Parties agree that this $1.8 billion maximum contribution should apply whether or not the PLWTP is actually upgraded to secondary treatment to meet legal requirements in the future because, as of the date of the Agreement, the Parties have the option of upgrading the PLWTP to full secondary treatment for the cost of approximately $1.8 billion. In light of the above, the Parties have agreed that if Metro System costs related to the Pure Water Program exceed the $1.8 billion, City’s Water Utility will pay a charge for each acre foot - 31 - 10-23-25 4907-3419-6844 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 - 32 - 10-23-25 4907-3419-6844 The total number of acre feet per year of secondary treated effluent that is expected to be produced by Metro System facilities for the production of Repurified Water over a period of thirty (30) years. The City shall estimate whether the Capital Expense Rate shall apply to the upcoming fiscal year (and its amount) prior to January 15 of each year, and the estimated amount of the Capital Expense Rate shall be effective on July 1 of the upcoming fiscal year. For purposes of this Section 6.7.3, Capital Improvement Costs and associated debt shall include such costs and revenue incurred by the Metro System prior to the effective date of the Agreement. 6.7.4 Year-End Adjustment. At the end of each fiscal year during which the Capital Expense Rate applies, the City shall determine the actual Capital Improvement Costs and associated debt attributable to the Metro System components of the Pure Water Program under this Section 6 and any upgrading of the PLWTP to secondary treatment, and the actual amount of secondary treated effluent produced by Metro System facilities and used for the production of Repurified Water. Based on the actual cost, interest, and effluent information, the City will recalculate the Capital Expense Rate for the prior fiscal year. The City will credit any future charges or bill for any additional amounts due the quarter after the prior year costs have been audited. 6.7.5 Duration; Expiration. The Capital Expense Rate shall continue until the cost difference between (a) the actual sum of Pure Water Program Capital Improvement Costs and associated debt attributable to the Metro System under Section 6.7 and/or the costs to upgrade the PLWTP and (b) $1.8 billion (as adjusted for inflation), has been fully paid, or the Agreement expires, whichever is sooner. Notwithstanding, it is the express intent and desire of the City and the Participating Agencies that if the Agreement expires before the cost difference has been paid through the Capital Expense Rate, that the Capital Expense Rate continue in any extension of this Agreement negotiated by the Parties pursuant to Section 14.2 until the cost difference has been fully paid. 6.8 Amending Pure Water Program Cost Allocation and Revenues – Phase 1. Except as otherwise provided in Section 6.6.2, the Parties may amend any provision in this Section 6 regarding the Finance, Budgeting, and Accounting for the Pure Water Program Cost Allocation and Revenues for Phase 1 in an Administrative Agreement subject to the Joint Administrative Approval Process set forth in Section 15. 7. FINANCE, BUDGETING, AND ACCOUNTING: PURE WATER PROGRAM COST ALLOCATION AND REVENUES – PHASE 2 7.1 Pure Water Program – Phase 2. The Second Phase of the Pure Water Program (“Phase 2”) shall create up to an additional 53 MGD of Repurified Water at Phase 2 facilities. The Parties agree to incorporate all terms relating to Phase 2 into this Agreement through an Administrative Agreement subject to the Joint Administrative Approval Process set forth in Section 15, subject to the requirements set forth in this Section 7 below. - 33 - 10-23-25 4907-3419-6844 7.2 Costs Excluded As Metro System Costs. Costs Excluded from Metro System Costs for Phase 2 shall be identified in an Administrative Agreement subject to the Joint Administrative Approval Process and approvals set forth in Section 15. However, the Administrative Agreement must reflect that all of the following PWP Phase 2 costs, including Capital Improvement Costs, Operation and Maintenance Costs, and other related costs (including administration, insurance, claims, and overhead) shall be excluded from Metro System Costs for the purposes of calculating the annual Phase 2 FAB rate, and shall be City Water Utility PW Costs: 7.2.1 Costs of the Phase 2 Water Repurification System and any Metro System facilities to the extent constructed, modified, expanded, or used for the purpose of treating water beyond secondary treatment (ocean discharge standard under current law). This shall include costs for preliminary treatment, primary treatment, and secondary treatment to the extent such costs are higher than they would otherwise be due to the production of Phase 2 Repurified Water. 7.2.2 Costs for fail-safe disposal, if necessary, for design capacity for Phase 2 Repurified Water, including, but not limited to, any costs associated with the reservation of capacity at the Point Loma Wastewater Treatment Plant. 7.2.3 Costs for the demolition or replacement of existing Metro System facilities with similar facilities for the purpose of making space available for Phase 2 Water Repurification System facilities. Such costs may take into account the current asset value or market value of the existing Metro System facility. 7.2.4 Costs for the Phase 2 methanol feed system. 7.2.5 Costs for Phase 2 RSDP disposal including, but not limited to, pump stations, pipelines, retreatment, ocean outfall, and monitoring. 7.2.6 50% of the costs for the MBR Tanks and system for Phase 2. 7.2.7 All membrane integrity monitoring systems for Phase 2. 7.2.8 All Phase 2 systems downstream of MBR’s. 7.3 Revenue Sharing for Repurified Water – Phase 2. Terms regarding revenue sharing for Repurified Water for Phase 2 shall be identified in an Administrative Agreement subject to the Joint Administrative Approval Process set forth in Section 15. However, this Administrative Agreement must reflect terms related to Phase 2 revenue sharing for Repurified Water that conceptually mimic those terms set forth in Section 6.6. The Metro System portion of the Repurified Water Revenue for Phase 2 shall be allocated among the City and the Participating Agencies consistent with Section 4.4.2, as may be amended or updated to account for changes in PWP Phase 2. 7.4 Capital Expense Rate – Phase 2. Terms regarding the Capital Expense Rate for Phase 2 shall be identified in an Administrative Agreement subject to the Joint Administrative Approval Process and approvals set forth in Section 15. However, this Administrative Agreement - 34 - 10-23-25 4907-3419-6844 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 - 35 - 10-23-25 4907-3419-6844 the City’s list of boards and commissions on the City’s website. The City shall present the position of the majority of the Metro JPA to the City’s governing body in written staff reports. The Metro JPA may prepare and submit materials in advance and may appear at any City hearings on Metro System matters and present its position to the governing body of the City. 9.2.2 The Metro JPA may advise the City of its position on any issue relevant to the Metro System. 9.3 Delegation of Decision-Making Authority of the Metro JPA. The Participating Agencies hereby delegate to the Metro JPA the authority to take certain actions pursuant to the approval processes provided in this Agreement, as permitted by law, including but not limited to Government Code 6506. The Participating Agencies agree that the Metro JPA has delegated authority to approve Administrative Agreements on behalf of each Participating Agency pursuant to the process set forth in Section 15. The Participating Agencies agree and acknowledge that the Metro JPA has authority to bind each Participating Agency to Administrative Agreements through the Joint Administrative Approval Process. All Participating Agencies agree to promptly execute Administrative Agreements after approval by the Metro JPA. By signing this Agreement, each Participating Agency is expressly preapproving such actions. 9.4 Standing. If a dispute arises among the Parties relating to or arising from a Party’s obligation under this Agreement or an associated Administrative Agreement, the Metro JPA shall have standing to enforce the terms of this Agreement against the City on behalf of two or more Participating Agencies if a majority of the Metro JPA votes to take action relating to this Agreement on behalf of two or more Participating Agencies. 10. DISPUTE RESOLUTION This Section governs all disputes arising out of this Agreement and any associated Administrative Agreements. 10.1 Mandatory Non-Binding Mediation. If a dispute arises among the Parties relating to or arising from a Party’s obligations under this Agreement or an associated Administrative Agreement that cannot be resolved through informal discussions and meetings, the Parties involved in the dispute shall first endeavor to settle the dispute in an amicable manner, using mandatory non-binding mediation under the rules of JAMS, AAA, or any other neutral organization agreed upon by the Parties before having recourse in a court of law. Mediation shall be commenced by sending a Notice of Demand for Mediation to the other Party or Parties to the dispute. A copy of the notice shall be sent to the City, all other Participating Agencies, and the Metro JPA. 10.2 Selection of Mediator. A single mediator that is acceptable to the Parties involved in the dispute shall be used to mediate. The mediator will be knowledgeable in the subject matter of this Agreement, if possible, and chosen from lists furnished by JAMS, AAA, or any other agreed upon mediator. 10.3 Mediation Expenses. The expenses of witnesses for either side shall be paid by the Party producing such witnesses. All mediation costs, including required travel and other expenses - 36 - 10-23-25 4907-3419-6844 of the mediator, and the cost of any expert advice produced at the direct request of the mediator, shall be Metro System costs. 10.4 Conduct of Mediation. Mediation hearings will be conducted in an informal manner. Discovery shall not be allowed. The discussions, statements, writings and admissions and any offers to compromise during the proceedings will be confidential to the proceedings (pursuant to California Evidence Code sections 1115 - 1128 and 1152) and will not be used for any other purpose unless otherwise agreed by the Parties in writing. The Parties may agree to exchange any information they deem necessary. The Parties involved in the dispute shall have representatives attend the mediation who are authorized to settle the dispute, though a recommendation of settlement may be subject to the approval of each agency’s boards or legislative bodies. Either Party may have attorneys, witnesses or experts present. 10.5 Mediation Results. Any resultant agreements from mediation shall be documented in writing. The results of the mediation shall not be final or binding unless otherwise agreed to in writing by the Parties. Mediators shall not be subject to any subpoena or liability and their actions shall not be subject to discovery. 10.6 Performance Required During Dispute. Nothing in this Section shall relieve the City and the Participating Agencies from performing their obligations under this Agreement. The City and the Participating Agencies shall be required to comply with this Agreement, including the performance of all disputed activity and disputed payments, pending the resolution of any dispute under this Agreement. 11. INSURANCE 11.1 City Shall Maintain All Required Insurance. 11.1.1 Throughout the term of this Agreement the City shall procure and maintain in effect liability insurance covering Metro System assets and operations in the same manner, and to the same extent, as the City insures similar assets and operations of the City. Such insurance may be provided through separate policies for the Metro System, or by consolidating the Metro System with other City assets and operations for insurance purposes. If the Metro System is insured separately, policy limits, deductibles, and self-insured retentions shall be equivalent to what the City procures for other similar City assets and operations. The City shall maintain all insurance required by law, including workers’ compensation insurance, and may self-insure for certain losses when allowed by law. The proportionate cost of insurance for the Metro System shall be included in the computation of the FAB. 11.1.2 If the Metro System is insured separately, any policy or policies of liability insurance carried by the City for the Metro System shall name the Participating Agencies as additional insureds with evidence of same supplied to each upon request. 11.1.3 Upon request by the Metro JPA or a Participating Agency, the City shall promptly provide written coverage and policy information, including, but not limited to, the scope of coverage, policy limits, deductibles, and self-insured retentions, including information on any claims made against the policies and remaining limits and deductibles. - 37 - 10-23-25 4907-3419-6844 11.2 Substantially Equivalent Coverage. In the event of a transfer of the Metro System to a nonpublic entity pursuant to Section 2.1, coverage substantially equivalent to all the above provisions shall be maintained by any successor in interest. 12. INTERRUPTION OF SERVICE Should the Metro System services to the Participating Agencies be interrupted as a result of a major disaster, by operation of federal or state law, or other causes beyond the City’s control, the Participating Agencies shall continue all payments required under this Agreement during the period of interruption. 13. NOTICES REQUIRED UNDER AGREEMENT The City and each Participating Agency shall give notice when required by this Agreement. All notices required by this Agreement must be in writing and must be sent via email and either served personally or mailed via first class U.S. mail. The notices shall be sent to the officer listed for each Party, at the address and email address listed for each Party in Exhibit D, Notice Listing, in accordance with this Section. If a Party wishes to change the officer and/or address to which notices are given, the Party shall notify all other Parties in accordance with this Section. Upon such notice, the City shall amend Exhibit D to reflect the changes. The amendment shall be made within sixty (60) days after receipt of the Party’s notice regarding the change in officer and/or address. The City shall keep an updated version of Exhibit D, notated with the most recent amendment date, on file with the City Public Utilities Department. The City shall provide a copy of the amended Exhibit D to all Parties by no later than sixty (60) days after amending Exhibit D. 14. EFFECTIVE DATE AND EXPIRATION 14.1 Effective Date. This Agreement shall be effective on July 1 of the fiscal year commencing after execution by the City and all of the Participating Agencies and shall be dated as of the signature date of the last executing Party. For example, irrespective of whether the last executing Party signs this Agreement on September 1, 2025, January 1, 2026, or June 30, 2026, the effective date of the Agreement would be July 1, 2026. 14.2 Expiration. Subject to the rights and obligations set forth in Section 14.3, unless amended, replaced, or terminated earlier by mutual consent of all the Parties, this Agreement shall expire on June 30, 2065. This Agreement is subject to extension by agreement of the Parties. The Parties shall commence discussions on an agreement to provide wastewater treatment services beyond the year 2065 on or before December 31, 2055, or at such time, if any, that the PLWTP is required to be upgraded to secondary treatment. The Parties may create, amend or terminate any associated Administrative Agreements addressing implementation of this Agreement, as provided in this Agreement. 14.3 Contract Capacity Rights Survive Expiration. The Participating Agencies’ Contract Capacity rights and rights to obtain wastewater treatment services from the facilities referred to in, or constructed pursuant to this Agreement shall survive the expiration of the Agreement. Provided, however, for any Participating Agency to exercise such rights, the Participating Agency shall comply with all the following requirements: (a) provide at least six months’ written notice prior to the expiration of this Agreement; (b) upon expiration of this Agreement, pay their proportional - 38 - 10-23-25 4907-3419-6844 share of Metro System Costs according to the billing methodologies set forth in this Agreement in order to maintain their right(s) to such wastewater treatment services; and (c) agree to recalculate and pay proportional share of future Metro System Costs based on the City’s and all remaining Participating Agencies’ proportionate shares. In the event this Agreement expires and one or more Participating Agency(ies) continue to pay their proportional share of all Metro System Costs, the City shall have the right to continue managing, operating, and expanding the Metro System subject to the same terms set forth in this Agreement, unless otherwise agreed to in writing by and between the City and a Participating Agency. In the event one or more Participating Agency(ies) exercise its/their right(s) to maintain Contract Capacity and wastewater treatment services, such Participating Agency(ies) shall also maintain the right to continue receiving any and all revenues contemplated by this Agreement, including, but not limited to, Metro System Revenues. 14.4 Abandonment. After June 30, 2065, the City may abandon operation of the Metro System upon delivery of notice to the Participating Agencies ten (10) years in advance of said abandonment. Upon notice by the City to abandon the Metro System, the Parties shall meet and confer over the nature and conditions of such abandonment. In the event the Parties cannot reach agreement, the matter shall be submitted to mediation under Section 10. In the event of abandonment, the City shall retain ownership of all Metro System assets free of any claim of the Participating Agencies. Abandonment by the City with continued operation by a different entity shall not terminate or affect a Contract Capacity rights of a Participating Agency so long as that Participating Agency has continued to pay their proportional share of Capital Improvement Costs and Operation and Maintenance Costs according to the billing methodologies set forth in this Agreement. Nothing in this language shall be construed to require the City to continue as operator of the Metro System after the ten-year (10) notice period has run. 15. ADMINISTRATIVE AGREEMENTS 15.1 Use and Process for Administrative Agreements. 15.1.1 Purpose. Administrative Agreements are intended to implement the intent of the Parties in an efficient and effective manner without reopening or renegotiating the terms of this Agreement. Administrative Agreements are limited to addressing issues that are authorized by this Agreement. Administrative Agreements are separate and distinct from Exhibits to this Agreement, and are designed to address procedural, operational, technical, and administrative issues. Terms in this Agreement may only be modified through the Joint Administrative Approval Process if this Agreement expressly authorizes the use of an Administrative Agreement. 15.1.2 Amendments, Supplements, or Successors to Administrative Agreements. Where this Agreement refers to an Administrative Agreement, such reference shall include any amendment(s) to that Administrative Agreement or supplemental or successor Administrative Agreement(s). 15.1.3 Function. Administrative Agreements are made among all the Parties but deal with a specific function or group of like functions, for the benefit of regional wastewater treatment within the Metro System, or for the implementation of this Agreement. - 39 - 10-23-25 4907-3419-6844 15.1.4 Current Agreements. The Administrative Agreements which are approved and executed simultaneously with the execution of this Agreement are listed Exhibit I, List of Administrative Agreements. The City shall update Exhibit I each time an Administrative Agreement is approved, amended, revised or terminated pursuant to this Agreement. 15.1.5 Development and Joint Administrative Approval Process. Any Party can present an Administrative Agreement, or an amendment or supplement thereto, or termination thereof, to the City for approval by way of the Joint Administrative Approval Process set forth in this Section. The City will endeavor in good faith to respond within 60 days of submission of a proposed Administrative Agreement. If the City needs additional time to evaluate the proposed Administrative Agreement, it will advise all Participating Agencies in writing of the anticipated review time. Once an Administrative Agreement receives City’s Administrative Approval, then, with respect to the Participating Agencies, the proposed Administrative Agreement may be presented to the Metro JPA at a duly noticed meeting for review and a first reading. Sixty (60) days or more after the first reading, after the Metro JPA Directors have had opportunity to consult with their respective agency staff and governing boards, the Administrative Agreement may be presented at a duly noticed meeting for a second reading and approved upon an affirmative vote by no less than two-thirds of the members of the Metro JPA during a duly noticed public meeting (in other words, upon the affirmative vote of at least eight or more of the twelve members of the Metro JPA, irrespective of how many Metro JPA Directors are present at the meeting, unless the number of Participating Agencies changes). If the second reading does not occur within One Hundred and Twenty (120) days after the first reading, the proposed Administrative Agreement shall no longer be taken into consideration, unless the City and the Metro JPA Directors agree to a different timeline. An Administrative Agreement, amendment thereto, or termination thereof, must receive City’s Administrative Approval and at least a two-third affirmative vote by the Metro JPA Directors before it can become effective. Administrative Agreements are binding contracts as against the City and all Participating Agencies, irrespective of whether or not any Participating Agency’s particular Metro JPA Director voted to approve the agreement or not, or was absent or abstained. The Metro JPA has the authority to bind the Participating Agencies to Administrative Agreements pursuant to the delegated authority provided to the Metro JPA in Section 9.3 herein. 16. GENERAL 16.1 Exhibits. 16.1.1 Exhibit List. This Agreement references Exhibits A through J. Each exhibit is attached to this Agreement and is incorporated herein by reference. All exhibits to this agreement shall be listed in Exhibit J, Exhibit List. The City shall update the Exhibit List from time to time each time an Exhibit is amended or revised pursuant to this Agreement. 16.2 Electronic Exhibits and Attachments. Acknowledgement and Acceptance: The Parties hereby acknowledge and agree that the exhibit(s) and attachment(s) related to this Agreement, or any of its associated Administrative Agreements, indicated as an Electronic Exhibits above (collectively, the “Electronic Exhibits”) may be in an electronic format that cannot be readily or accurately converted into a physical or printed form. The Parties expressly agree that such Electronic Exhibits shall nonetheless be deemed to be valid and enforceable attachments to this Agreement and shall be incorporated by reference as if fully set forth herein. - 40 - 10-23-25 4907-3419-6844 16.2.1 Identification and Access: All Electronic Exhibits shall bear the same Exhibit identifier and name (i.e., Exhibit A – Metro Facilities) set forth in the Exhibit List, and shall be clearly identified as an Electronic Exhibit in the Exhibit List, including a file name, a time stamp of file, and a note indicating the software used to open and view the file, including version. The Electronic Exhibit shall be loaded on to a CD-ROM, DVD-ROM, or other electronic storage medium that is a write-once medium without the ability to further edit. Each Party shall receive an identical copy of the Electronic Exhibit(s) via identical storage mediums. The City shall ensure that all Participating Agencies have full and unrestricted access to Electronic Exhibits for the duration of the Agreement and any applicable retention period thereafter, including by providing access to any necessary software, applications, or systems required to view, interact with, or manipulate the Electronic Exhibits in their native format; such as through website access via the GIS Online platform: https://sandiego.maps.arcgis.com. No interaction or manipulation of any Electronic Exhibit shall in any way constitute a bona fide change or amendment to the Electronic Exhibit. 16.2.2 Storage and Security: Each Party shall be responsible for securely storing and maintaining the integrity of the Electronic Exhibits in their possession or control. This includes, but is not limited to, implementing and maintaining reasonable and appropriate technical, administrative, and physical safeguards to protect the confidentiality, availability, and integrity of the Electronic Exhibits, and to prevent unauthorized access, disclosure, alteration, or destruction thereof. 16.2.3 Authentication and Admissibility: The Parties hereby stipulate and agree that the Electronic Exhibits shall be deemed to be original documents and authentic for all purposes under applicable law, and that the Parties may rely upon and introduce such Electronic Exhibits as evidence in any proceeding arising out of or relating to this Agreement, without the need for further foundation, authentication, or certification. 16.2.4 Receipt and Completeness: Each Party hereby acknowledges and confirms that they have received, reviewed, and had a reasonable opportunity to inspect all Electronic Exhibits that are attached to and incorporated into this Agreement as of the Effective Date. By executing this Agreement, each Party represents and warrants that, to the best of their knowledge, the Electronic Exhibits are complete, accurate, and free from material errors, omissions, or defects. The Parties further agree to notify the other Party promptly upon discovering any discrepancies or inaccuracies in the Electronic Exhibits, and to cooperate in good faith to resolve any such issues in a timely manner. 16.2.5 Amendments and Modifications to Electronic Exhibits: Any amendments or modifications to the Electronic Exhibits shall be made in accordance with the procedures set forth in this Agreement for amending or modifying the terms and conditions hereof, and any such amended or modified Electronic Exhibits shall be deemed to replace and supersede any prior version thereof. Amended Electronic Exhibits shall also be loaded onto a new and separate CD- ROM, DVD-ROM, or other electronic storage medium that is a write-once medium without the ability to further edit. Each Party shall receive identical copies of the Electronic Exhibits via identical storage mediums. Amended Electronic Exhibits shall bear identical Exhibit Identifiers as their predecessor exhibits, but with a different suffix (for example, Exhibit A, when amended, shall be identified as Exhibit A-1, a subsequent amendment shall be identified as Exhibit A-2, etc.). - 41 - 10-23-25 4907-3419-6844 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 - 42 - 10-23-25 4907-3419-6844 (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 - 43 - 10-23-25 4907-3419-6844 (h) Changes to Exhibit H if CWA changes their rate structure as specifically set forth in Section 6.6.2 (i) Changes to Exhibit D (Notice) as specifically set forth in Section 13. 16.4 Construction of Agreement. 16.4.1 Drafting of Agreement. It is acknowledged that the City and the Participating Agencies, with the assistance of competent counsel, have participated in the drafting of this Agreement and that no ambiguity should be construed for or against the City or any Participating Agency on account of such drafting. 16.4.2 Entire Agreement. The City and each Participating Agency represent, warrant and agree that no promise or agreement not expressed herein has been made to them, that this Agreement contains the entire agreement between the Parties, that this Agreement supersedes any and all prior agreements or understandings between the Parties unless otherwise provided herein, and that the terms of this Agreement are contractual and not a mere recital; that in executing this Agreement, no Party is relying on any statement or representation made by the other Party, or the other Party’s representatives concerning the subject matter, basis or effect of this Agreement other than as set forth herein; and that each Party is relying solely on its own judgement and knowledge. 16.4.3 Agreement Binding on All; No Third-Party Beneficiaries. This Agreement shall be binding upon and shall inure to the benefit of each of the Parties, and each of their respective successors, assigns, trustees or receivers. All the covenants contained in this Agreement are for the express benefit of each and all such Parties. This Agreement is not intended to benefit any third parties, and any such third-party beneficiaries are expressly disclaimed. 16.4.4 Severability. 16.4.4.1 Should any provision of this Agreement or any associated Administrative Agreement be held invalid or illegal, such invalidity or illegality shall not invalidate the whole of the Agreement, but, rather, the Agreement shall be construed as if it did not contain the invalid or illegal part, and the rights and obligations of the Parties shall be construed and enforced accordingly except to the extent that enforcement of the Agreement without the invalidated provision would materially and adversely frustrate either the City’s or a Participating Agency’s essential objectives set forth in this Agreement or the applicable Administrative Agreement. 16.4.4.2 Should a court determine that one or more components of the allocation of costs set forth in this Agreement or any associated Administrative Agreement places the City or a Participating Agency in violation of Article XIII D, Section 6 of the California Constitution with respect to their ratepayers, such components shall no longer be of force or effect. In such an event, the City and the Participating Agencies shall promptly meet to renegotiate the violative component of the cost allocation to comply with Article XIII D, Section 6 of the California Constitution, and use the dispute resolution process in Section 10 of this Agreement if an agreement cannot be reached through direct negotiation. - 44 - 10-23-25 4907-3419-6844 16.4.4.3 Should a state or federal agency provide a final, written determination that the method of allocating Pure Water Program Capital Improvement Costs under this Agreement violates the requirements of state or federal grants or loans which are, or will be, used to fund the wastewater components of the Pure Water Program, such allocation method will no longer be of any force or effect. In such an event, the allocation of Repurified Water Revenue and the Capital Expense Rate will continue to be based on the Parties’ actual payments to fund the Pure Water Program Capital Improvement Costs attributable to the Metro System. The City and the Participating Agencies shall also promptly meet to negotiate an alternative cost allocation method that would comply with such grant or loan funding requirements. 16.4.5 Choice of Law. This Agreement and any of its associated Administrative Agreements shall be construed and enforced pursuant to the laws of the State of California. 16.4.6 Recognition of San Diego Sanitation District as Successor to Certain Parties. The Parties hereby acknowledge and agree that the San Diego County Sanitation District is a Participating Agency under this Agreement as the successor in interest to the Alpine Sanitation District, East Otay Mesa Sewer Maintenance District, Lakeside Sanitation District, Spring Valley Sanitation District, and Winter Gardens Sewer Maintenance District. 16.5 Declarations Re: Agreement. 16.5.1 Understanding of Intent and Effect of Agreement. The Parties expressly declare and represent that they have read the Agreement and that they have consulted with their respective counsel regarding the meaning of the terms and conditions contained herein. The Parties further expressly declare and represent that they fully understand the content and effect of this Agreement and they approve and accept the terms and conditions contained herein, and that this Agreement is executed freely and voluntarily. 16.5.2 Warranty Regarding Obligation and Authority to Enter Into This Agreement. Each Party represents and warrants that its respective obligations herein are legal and binding obligations of such Party, that each Party is fully authorized to enter into this Agreement, and that the person signing this Agreement hereinafter for each Party has been duly authorized to sign this Agreement on behalf of said Party. 16.6 Right to Make Other Agreements. Nothing in this Agreement limits or restricts the right of the City or the Participating Agencies to make separate agreements among themselves, including through joint powers agreements, without the need to amend this Agreement, provided that such agreements are consistent with this Agreement. Nothing in this Agreement or Section 6 limits or restricts the right of the City or the Participating Agencies to enter into separate agreements regarding the industrial pretreatment program, or for the purchase or sale of Repurified Water produced by the Water Repurification System, or sharing in City Water Utility PW Costs; however, such agreements shall not affect the cost allocation and Metro System revenues delineated in Section 5. 16.7 Statute of Limitations to Resolve Billing Issues. Notwithstanding any longer statute of limitations in State law, if the City or a Participating Agency wishes to dispute a bill (including, but not limited to, an audited bill or an audit reconciliation) on the basis of an alleged overpayment - 45 - 10-23-25 4907-3419-6844 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. FlowerStreet MeterCV5 Plaza Bonita-1 Meter CV6M Plaza Bonita-2 Meter CV7M Las Flores Dr Meter CV8 N. FifthAve 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. - 4 - 10-23-25 4932-9907-9020 (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] - 5 - 10-23-25 4932-9907-9020 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). - 6 - 10-23-25 4932-9907-9020 (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 - 7 - 10-23-25 4932-9907-9020 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 - 8 - 10-23-25 4932-9907-9020 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 - 9 - 10-23-25 4932-9907-9020 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”). - 10 - 10-23-25 4932-9907-9020 (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 - 11 - 10-23-25 4932-9907-9020 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. - 12 - 10-23-25 4932-9907-9020 (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. - 13 - 10-23-25 4932-9907-9020 (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: - 14 - 10-23-25 4932-9907-9020 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: - 15 - 10-23-25 4932-9907-9020 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: Jon Ravaglioli Finance Manager PROJECT: N/A DIV. NO. ALL APPROVED BY: Joseph R. Beachem, Chief Financial Officer Jose Martinez, General Manager SUBJECT: Adopt Resolution No. 4466 Authorizing the Establishment of a New Investment Account at Neighborhood National Bank General Manager’s Recommendation That the Board adopt Resolution No. 4466 authorizing the establishment of a new investment account at Neighborhood National Bank for the purpose of participating in the Certificate of Deposit Account Registry Service (CDARS) deposit investment program. Committee Action See Attachment A. Purpose To request that the Board review the rationale for opening a new District bank account and approve the establishment of that account, pursuant to Section 3 of the District Code of Ordinances, through adoption of Resolution No. 4466. Analysis Neighborhood National Bank Neighborhood National Bank (NNB) is a local financial institution designated as a Community Development Financial Institution (CDFI), reflecting NNB’s commitment to investing in underserved communities. CDFI banks are different from other financial institutions in their community development focus and are required to direct at least 60% of their financing activities toward directly benefiting low- and moderate-income populations or underserved communities. AGENDA ITEM 7c Many local agencies currently maintain accounts with NNB, including Sweetwater Authority and the City of Chula Vista. These agencies invest in the CDARS program at NNB, earning a return on their investments while supporting the bank’s efforts within the local community. CDARS Programs & Participation The Certificate of Deposit Account Registry Service (CDARS) is a program that allows large sums of money to be invested in certificates of deposit (CDs) while ensuring that funds remain protected by Federal Deposit Insurance Corporation (FDIC) insurance coverage. CDARS works by distributing deposits across a network of banks so that each participating bank holds deposits below the FDIC insured limit (currently $250,000). Under the District’s Investment Policy No. 27, Section 8.04, the purchase of CDs, including those acquired through a CDARS program, is permitted for up to 15% of the District’s investment portfolio, with a maximum maturity of five years. All investments are made with the objective of providing maximum security with the best return, while meeting the daily cash flow demands of the District. The District previously held an account at Neighborhood National Bank to participate in the CDARS program from 2009 to 2012, during which a 12-month investment was rolled over multiple times. CDARS Returns on Investments The table below shows quoted pricing from Neighborhood National Bank and U.S. Treasury yields for comparable terms, as of the same date. Treasury yields serve as a primary benchmark for CD rates and provide a reasonable basis for comparing returns. Given the quoted rates, terms, and amount available for investment, any difference in returns are expected to be immaterial to the District. Term CD Rate Treasury Yield 12-month 3.56% 3.53% 24-month 3.51% 3.53% Administrative Cost of Participating in CDARS Although the administrative burden associated with CDARS is less than purchasing and managing individual CDs, there are still costs to participate in the CDARS program. Initial administrative steps include opening the account, completing authorization documents, designating account signers, approving and transferring funds, and directing investments. Ongoing responsibilities for staff would include monitoring, reconciling, and reporting on funds. While these costs are more than the typical investments by the District, the added cost is not anticipated to be significant. Ongoing administrative costs will also be mitigated by limiting the number of transactions. Board Approval Pursuant to Section 3.03 of the District Code of Ordinances, the Board has the authority to establish a new bank account. Staff recommend that the Board approve the opening of a District bank account at Neighborhood National Bank. Fiscal Impact Joe Beachem, Chief Financial Officer None. Strategic Goal The District ensures its continued financial health through long-term financial planning, formalized financial policies, enhanced budget controls, fair pricing, debt planning, and improved financial reporting. Legal Impact None. Attachments: Attachment A – Committee Action Attachment B – Resolution No. 4466 ATTACHMENT A SUBJECT/PROJECT: Adopt Resolution No. 4466 Authorizing the Establishment of a New Investment Account at Neighborhood National Bank COMMITTEE ACTION: The Finance & Administration Committee reviewed this item at a meeting held on January 21, 2026, and the following comments were made: •Staff indicated that the investment account with NeighborhoodNational Bank is intended to safely invest district funds, while supporting a local community development financial institution(CDFI). However, staff emphasized the District’s primary fiduciaryduty to ratepayers. •Staff also stated that the CDARS program allows the district to invest funds across multiple banks in increments within the $250,000FDIC insurance limit, ensuring the safety of the principal. •The Committee expressed support, noting the alignment with communityvalues and the fact that other local agencies also use this bank. •While the Committee supported this initiative, they also cautionedagainst opening the door to numerous similar requests, noting that one bank is sufficient. Staff agreed that it is practical andefficient to limit the number of banking relationships, and thepurpose of investing in CDARS will be achieved with this sole account. •The Committee agreed that presentation to the full board wasappropriate as it demonstrates the board’s fiduciary responsibility,its confidence in the finance team, and its commitment to legalcompliance. Following the discussion, the Committee supported staff’s recommendation and presentation to the full board as an action item. RESOLUTION NO. 4466 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT AUTHORIZING THE GENERAL MANAGER TO OPEN AN ADDITIONAL BANK ACCOUNT WHEREAS, pursuant to California Water Code Section 60240, the Otay Water District Board of Directors may authorize the General Manager to establish an additional alternative depository. WHEREAS, Title 5, Division 2, Part 1, Chapter 4, Article 2 of the Government Code authorizes Otay Water District to deposit, invest, and withdraw funds from a new bank account. WHEREAS, the Otay Water District aims to open a new bank account at Neighborhood National Bank. WHEREAS, Neighborhood National Bank is a local financial institution designated as a Community Development Financial institution. WHEREAS, the role of the new bank account at Neighborhood National Bank is to participate in the Certificate of Deposit Account Registry Service deposit investment program. WHEREAS, the Certificate of Deposit Account Registry Service purpose of participating in the program at Neighborhood National Bank permits large sums of money to be invested in certificate deposits while ensuring the funds are protected by the Federal Deposit Insurance coverage. Attachment B NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED by the Board of Directors of the Otay Water District that the above stated recitals are incorporated herein by reference; BE IT RESOLVED that this resolution shall be in full force and effect immediately after its passage and approval. PASSED, APPROVED and ADOPTED by the Board of Directors of the Otay Water District at a board meeting held this 4th day of February 2026, by the following vote: Ayes: Noes: Abstain: Absent: ________________________ President ATTEST: ____________________________ District Secretary STAFF REPORT TYPE MEETING: Regular Board Meeting MEETING DATE: February 4, 2026 SUBMITTED BY: Jenny Diaz District Secretary W.O./G.F. NO:DIV. NO. APPROVED BY: Jenny Diaz, District Secretary Jose Martinez, General Manager SUBJECT: Board of Directors 2026 Calendars of Meetings GENERAL MANAGER’S RECOMMENDATION: At the request of the Board, the attached Board of Director’s meeting calendar for 2026 is being presented for discussion. PURPOSE: This staff report is being presented to provide the Board an opportunity to review the 2026 Board of Director’s meeting calendar and amend the schedule as needed. COMMITTEE ACTION: N/A ANALYSIS: The Board requested that this item be presented at each meeting so they may have an opportunity to review the Board meeting calendar schedule and amend it as needed. STRATEGIC GOAL: N/A FISCAL IMPACT: None. LEGAL IMPACT: None. Attachment: 2026 Calendar of Meetings AGENDA ITEM 7d Board of Directors Meetings and Workshops 2026 Regular Board Meetings: Special Board or Committee Meetings (3rd Wednesday of Each Month or as Noted) January 7, 2026 February 4, 2026 March 4, 2026 April 1, 2026 May 6, 2026 June 3, 2026 July 1, 2026 August 5, 2026 September 2, 2026 October 7, 2026 November 4, 2026 December 2, 2026 January 21, 2026 February 18, 2026 March 18, 2026 April 15, 2026 May 20, 2026 June 17, 2026 July 15, 2026 August 19, 2026 September 16, 2026 October 21, 2026 November 18, 2026 December 16, 2026 STAFF REPORT TYPE MEETING:Regular Board MEETING DATE: February 4, 2026 SUBMITTED BY: Jose Martinez General Manager WO/GF NO.: N/A DIV. NO.: N/A APPROVED BY: Jose Martinez, General Manager SUBJECT:General Manager’s Report GENERAL MANAGER’S OFFICE •Social Media The District continued using social media to support recruitment, share seasonal conservation reminders, and communicate agency updates. Posts highlighted employment opportunities, encouraged responsible water use during wet weather, announced leadership updates, and promoted upcoming community workshops. Collectively, these posts reached a broad audience and generated positive engagement across the District’s platforms. •Joint Public Information Council – On Jan. 12, communications staff attended the San Diego County Water Authority’s Joint Public Information Council meeting. Water Authority staff provided updates on water supply, regulations, Flume devices, water-efficiency programs, Capital Improvement Program projects, workforce development outreach, and digital marketing opportunities. In addition, the AGENDA ITEM 8 2 agencies discussed the Water Authority’s coordination of the rates and affordability working group. •Advanced Meter Installation Project Video and Website – Communications staff worked with customer service, meter staff, and the project’s consultant to begin shooting footage for a customer-facing video to explain why the District is installing Advanced Metering Infrastructure, the process that customers will experience when receiving the installation of the new meters, and more. Staff also launched the initial Advanced Meter Installation Project website here: otaywater.gov/ami. This site will continue to be updated during the life of the project. •San Diego County Water Authority Legislative Liaison Meeting – Communications staff attended the Water Authority’s first legislative liaison meeting of 2026. Water Authority staff provided member agency staff with updates on federal, state, and Colorado River issues. •Metropolitan Water District (MWD) Water-Use Efficiency Meeting – Staff attended MWD’s water-use efficiency meeting. MWD staff provided updates to attendees about grant funding, board reporting, the conservation program, Colorado River Negotiations, and external affairs programs. •News Release – On Jan. 15, communications staff distributed a news release announcing the 2026 District board officers. The news release was covered in enewsletters from the Association of California Water Agencies (ACWA), the South County Economic Development Council, the Spring Valley Chamber, the East County Chamber, the Chula Vista Chamber, and the Otay Mesa Chamber. On Jan. 20, the San Diego County Water Authority also sent it to its email distribution list and featured the news in its Water News Network here: waternewsnetwork.com/francisco-x-rivera-elected-2026-otay-water- district-board-president. The news was also featured here: 3 o East County Community Times: https://indd.adobe.com/view/12a8e9d0-c5ec-4ee1-8ff8-b4933339a34f (pg. 4) o ACWA Member News: acwa.com/news/francisco-x-rivera- elected-as-otay-water-district-board-president-for-2026 o Filipino Press (January 23 – January 29, 2026 Issue) Through the aforementioned publications, District news about the new board officers was distributed to more than 30,000 individuals and businesses. ADMINISTRATIVE SERVICES: GIS: • GIS System Architecture Design Completion - Enterprise GIS architecture defines how the District’s GIS systems are structured, integrated, and supported to reliably serve the organization. As GIS has become a core enterprise system supporting asset management, operations, planning, regulatory reporting, and decision-making, a well-defined and scalable architecture is essential. With the District’s strategic transition from a Geometric Network to Esri’s Utility Network, the GIS team initiated a comprehensive GIS Architecture Design Project in partnership with Esri’s Professional Services and IT Operations staff. Following an architecture and planning workshop and a detailed review of Esri’s preliminary design documents with consultant NV5, the District made a key decision to consolidate the proposed GIS environments into a single ArcGIS Enterprise 11.5 platform. This approach simplifies system management, reduces infrastructure complexity, improves performance and security, and aligns with industry best practices and the District’s long-term strategy. The project has now reached its final phase, resulting in comprehensive GIS enterprise architecture that will guide Utility Network implementation and support the District’s GIS operations and technology planning over the next five years. 4 Human Resources: •ERP/Tyler Conversion - HR started ERP/Tyler conversion meetings on 10/8/24; HR/Payroll went live on 10/6/25. Recurring meetings have resumed for 2026. •Open Enrollment 2025 – Open Enrollment was completed 10/15/25 - 10/29/25. A special Open Enrollment for Voluntary Life and Accidental Death and Dismemberment Insurance was held 12/4/25 through 12/12/25. HR and Payroll are implementing all January 2026 benefit changes, including soliciting updated beneficiary forms from all employees. •Employee Service Milestones (5-year increments) – February/March 2026 o No employees will achieve service credit milestones in February. o Brad Larson, Lead Water Systems Operator, will achieve 20 years of service on 3/1/26 and is scheduled to retire on 3/3/26. o Cyndi Alcantara, Business Systems Analyst, will achieve 20 years of service on 3/6/26 and is scheduled to retire on 7/31/26. o Zack Tackett will achieve 20 years of service on 3/21/26. •New Hires/Recruitments – The District has completed or is in the process of recruiting approximately 20 vacancies. Nine recruitments are in process, six new hires have started or are scheduled to start, and internal candidates were selected for promotions completing five recruitments. Following are further details on positions the District is or will be recruiting for the following positions: o Business Systems Analyst I/II – New hire started on 1/26/26. o Confidential Executive Assistant – Internal promotion effective1/26/26, creating a Department Assistant vacancy. o Construction Inspector I/II – Newly budgeted FTE effective January 2026. Recruitment posted on 10/27/25. Panel interviews were completed on 12/16/25. Internal candidate was promoted on 1/12/26, creating a Recycled Water Specialist vacancy. o Customer Service Representative I/II – Recruitment posted on 9/18/25. Skills tests were completed 10/23/25 – 10/27/25. Phone screens were completed on 11/12/25 & 11/13/25. Panel interviews were completed on 12/2/25 & 12/4/25. Pursuing two candidates, tentatively scheduled to start on 2/2/26. 5 o Equipment Mechanic I/II – Two vacancies due to retirements. Recruitment posted on 8/20/25. Panel interviews were completed on 10/13/25 and 10/30/25. Skills tests were completed on 10/30/25. One new hire started on 1/5/26. Phone screens were completed on 1/16/26 and 1/20/26 for the second vacancy. Skills testing and panel interviews are tentatively scheduled for 1/29/26. o Finance Manager, Treasury & Accounting Services – Recruitment posted on 12/30/25. Application review is scheduled for 2/1/26. o Lead Water Systems Operator – Recruitment posted on 11/13/25. Panel interviews were completed on 1/8/26. Pursuing candidate, tentatively scheduled to start on 2/9/26. o Meter Maintenance/Cross Connection Worker - Recruitment posted on 7/21/25. Phone interviews were completed on 9/2/25. Panel interviews were completed on 9/8/25, 9/9/25 & 9/30/25. One new hire started on 10/14/25. One internal candidate was promoted on 1/5/26, creating an additional Utility Worker I/II vacancy. o Senior/Disinfection Technician – Recruitment posted on 1/7/26. Application review in progress. o Senior/Engineering Technician – Recruitment posted on 10/8/25. Panel interviews were completed on 1/13/26. Pursuing candidate. o Utility Crew Leader – Recruitment posted on 11/13/25. Panel interviews were completed on 12/17/25. Internal candidate was promoted on 12/29/25, creating an additional Senior Utility Worker/Equipment Operator vacancy. o Utility Services Manager – Recruitment posted on 12/9/25. Application review is in progress. o Utility Worker I/II – Phone screens were completed on 10/7/25. Panel interviews were completed on 10/20/25 & 10/23/25. Skills Tests were completed on 10/27/25. One new hire started 12/15/25. Additional phone screens were completed on 1/6/26 and 1/7/26; Skills tests and panel interviews were completed on 1/15/26. Pursuing three candidates. o Warehouse Technician - Newly budgeted FTE effective January 2026. Recruitment posted on 10/27/25. Phone screens were completed on 12/3/25 & 12/5/25. Panel interviews were completed on 12/18/25. Pursuing candidate, tentatively scheduled to start on 2/9/26. o Water Systems Operator I/II/III - Internal promotion effective 2/23/26, creating an additional Utility Worker I/II vacancy. 6 IT Operations: • Cybersecurity Grant – The District was awarded $249,964 in grant funding in December 2024 from the California Governor’s Office of Emergency Services under the State and Local Cybersecurity Grant Program, established through the Infrastructure Investment and Jobs Act. The program was highly competitive, with several hundred applications submitted statewide, and awards were based on the effectiveness of proposed measures to strengthen cybersecurity, reduce network disruptions, and protect public health and safety. In January of 2026, the District received authorization to proceed with cybersecurity project activities and will be allowed to submit reimbursement requests in accordance with grant requirements. Purchasing & Facilities: • Phase II Administrative Campus Landscaping - The Phase II Administrative Campus Landscaping project is substantially complete and has been delivered largely as planned. With the exception of weather-related rain delays, construction remained on schedule and within the approved budget. The project substantially enhances the visual character and functionality of the campus through a coordinated mix of new plantings, hardscape elements, and circulation improvements that reinforce both aesthetics and usability. The completed work includes a diverse palette of drought-tolerant trees, shrubs, ornamental grasses, succulents, and native accent plantings, such as acacia, cypress, island ironwood, agaves, yuccas, salvias, ceanothus, and other low-water species, selected to provide year-round structure, color, and long-term durability. Updated garden areas incorporate Arizona Blend boulders intentionally arranged to create informal seating and gathering 7 opportunities, along with stabilized decomposed granite pathways that improve accessibility and pedestrian flow. Two existing concrete benches were repurposed and relocated, one positioned outside the employee entrance and another at the top of the stairs overlooking the garden, to provide secure outdoor seating during employee breaks. The irrigation system was modernized with high-efficiency controllers, flow sensing, and weather-based controls to support water conservation and long-term efficiency. During construction, an unforeseen condition was identified at the northeast corner of the employee parking lot where a corroded corrugated culvert had failed; the culvert is being replaced through a change order to ensure proper drainage and long-term site integrity. Beyond the immediate campus improvements, the project reflects the District’s broader commitment to environmental stewardship, thoughtful design, and responsible use of public resources. The demonstration garden and drought-tolerant plant palette serve as a visible example for the community, showcasing water-efficient landscaping practices that are both attractive and well-suited to a Southern California climate. In a separate but coordinated effort with the landscape architect, interactive educational signage will be developed and installed to further enhance the site’s value as a learning and demonstration resource for employees, visitors, and the public. Following completion of punch list items, the project will undergo a formal review with the landscape architect and District staff. Upon acceptance, a 90-day establishment and maintenance period will begin to identify and address any plant or system-related issues. This will be followed by a one-year maintenance agreement, with options for extension, to ensure consistency in care, protect the 8 District’s investment, and support long-term performance of landscape improvements. Safety, Emergency Management, and Security: •ACWA JPIA Property Appraisal Site Visits - ACWA JPIA partnered with Centurisk to coordinate and conduct onsite District property appraisals to ensure accurate, defensible replacement cost values and complete asset documentation. The service is part of the District’s property program membership, which supports both a stronger risk profile and improved accuracy in the schedule of values. The last property appraisal site visits were conducted in- house by ACWA JPIA in October 2021. ACWA JPIA’s scope of work focused on scheduled assets valued at $500,000 or more. Based on the scope of work, it was initially anticipated that Centurisk would appraise approximately 30 District assets. Staff reviewed the initial list of properties and Centurisk’s scope of work. After reviewing the list of valued assets with the scope of work, the staff reduced the number of facilities to visit to 19 sites. Centurisk conducted the on-site field verification, developed Uniform Standards of Professional Appraisal Practice (USPAP)- aligned valuations, and then forwarded the results to the RiskStar application, ACWA JPIA’s property management system, for ongoing asset tracking. It took 2.5 days to facilitate 19 appraisal visits. FINANCE: •FY 2026 Debt Issuance – Staff are reviewing the draft Preliminary Official Statement and working to identify eligible CIP projects to be funded with the debt proceeds. A debt issuance of approximately $25 million is projected for May/June. •FY 2027 Budget – Staff are developing initial CIP and capital purchase budgets for review with the GM in February. Administrative and materials, and personnel budgets will be developed in February and finalized in March. A Key Budget Assumptions Workshop is scheduled for the April 29 special board meeting. •Meter Replacement Project – Staff worked with Badger Meter, PMI, and ESource to complete the installation of 18 meters on January 13 and 14. Fifteen meters were installed at the homes of District staff, with the remaining three selected to complete a specific area of the Initial Deployment Area (IDA). Postcards, emails, and 9 automated phone calls were sent to inform customers of the upcoming changeouts. This limited installation was used to test the installation workflow in preparation for the larger IDA installation planned to begin in February. All installations were completed successfully, and staff are now working to automate the process for importing new meter data into Eden and associating it with the appropriate customer accounts. The District’s project webpage also went live this month and is referenced in all project- related communications. Badger’s contracted film crew, Rogue Monkey, was onsite on January 13 and 14 to capture video footage for the District’s meter changeout video. •2026 Rates – New water and sewer rates went into effect on January 1, 2026. Customer Service is tracking customer inquiries related to the updated rates. As of January 22, the District has received four calls regarding the rate changes. One call was an inquiry about the amount of the rate increase, and the remaining three callers expressed concern about higher bills. •Cross Connection Control Policy Handbook (CCCPH) – The State Water Resources Control Board (SWRCB) published proposed modifications to the CCCPH on January 16. These modifications are anticipated to be approved at the SWRCB’s April meeting. While not extensive, the proposed changes ease certain burdensome requirements for interconnected well sites. These revisions reflect several comments and recommendations provided by District staff during the development of the handbook, and it is encouraging to see the SWRCB consider stakeholder feedback and propose practical adjustments that support effective operation of the Cross-Connection Control program. Financial Reporting: •The financial reporting as of December 31, 2025, is as follows: o As of the sixth month ending December 31, 2025, there are total revenues of $75,672,264 and total expenses of $75,515,043. The revenues exceeded expenses by $157,221. •The financial reporting for investments as of December 31, 2025,is as follows: o The market value shown in the Portfolio Summary and in the Investment Portfolio Details as of December 31, 2025, total $109,733,615 with an average yield to maturity of 3.972%. The total earnings year to date are $2,124,905. 10 ENGINEERING AND WATER SYSTEM OPERATIONS: Engineering: •Vista Diego Hydropneumatic Pump Station Pump, Hydropneumatic Tank, and Backup Power Replacement, 1530 Zone, Vista Diego Road: The project includes the replacement of the existing pumps, the hydropneumatic tank, and the backup power. A concept including a temporary domestic pump skid to be located just outside of the existing pump station yard between Vista Diego Road and the existing pump station site in a shared easement with SDG&E was vetted by Engineering and Operations on July 10, 2025. District in-house engineering staff, supported by the District’s as-needed electrical engineer, EPI, completed 90% design of bid documents on December 8, 2025. Delivery of the pre- purchased domestic pump skid is anticipated in January 2026. Delivery of other pre-purchased materials such as a prefabricated small building, a pair of bladder tanks, and other items are anticipated through June 2026. After the District’s Water System Operations staff gains experience and confidence operating the temporary pump station skid, a second phase of the project will be implemented to replace the existing site domestic pumps and existing hydropneumatic tank. The project is within budget and on schedule. (P2639, P2663, and P2688) •RWCWRF Disinfection System Improvements: The project involves the replacement of the chlorine gas disinfection system with an ultraviolet (UV) process at the Ralph W. Chapman Water Reclamation Facility. A construction contract has been awarded to GSE Construction Co., Inc. On February 21, 2024, staff presented the Disinfection Improvement project at the Board Workshop as an informational item. A Notice to Proceed was issued for April 8, 2024, and the contractor has mobilized and begun construction. The contractor ordered the Trojan UV system, which arrived on August 22, 2024. The first and second planned shutdowns were combined to minimize downtime at the plant and were successfully completed on December 2, 2024. Work completed during the shutdown included new backwash pumps and the installation of a new flow meter. On February 6, 2025, the state granted a conditional acceptance of the Engineering Report. The contractor installed the Trojan UV system, and testing and commissioning of the Trojan UV system continued through November 2025. The State Water Resources Control Board Department issued the Conditional Title 22 Acceptance Permit in April. Testing and commissioning of the Trojan UV System was initiated at the end of May 2025. Pretesting and diagnostics are being conducted on the UV System by Trojan prior to completing the Initial Performance Testing. Diagnostics in October identified the need for improving bottom seals. This was addressed in early November 11 2025. The 7-day Initial Performance Testing (IPT) was completed from November 12 through November 21, 2025. Bioassay Spot Check (BSC) scheduled from January 5 through January 7, 2026, results are in review. BSC is the final step of testing and commissioning. The project is on schedule and on budget. (R2117 and R2157) • 450-1 Recycled Water Reservoir Stormwater Improvements: Stormwater runoff from the 450-1 Recycled Water Reservoir site has been eroding the downstream area and exposed the District's 30-inch recycled water line. Staff are working with NV5 and Helix Environmental on design and permitting solutions to support the work within the tributary. The project is within budget and on schedule. (R2164) • Zero Emission Vehicles and Charging Infrastructure: The project is for the capital purchase and installation of various electric vehicle support equipment, such as charging infrastructure needed to power Zero Emission Vehicles (ZEVs) for light, medium, and heavy-duty electric vehicles. The project is in preparation for compliance with the State of California's Executive Order N-79-20 and the Advanced Clean Fleet Regulation to require ZEV purchases when adding to the District's fleet of vehicles. The State’s Advanced Clean Cars II (ACCII) regulations are still in place. Due to recent geopolitical events, the District will continue monitoring the current requirements and adjust the implementation and budgeting of the charging infrastructure as needed. In December 2024, the District was awarded $128,093 in grant funding for the installation of five (5) electric vehicle battery charging stations from the Clean Air for All Grant from the San Diego Air Pollution Control District. The final electrical design of the five charging stations was completed in March 2025. The new charging stations were ordered in April 2025 and delivered in May 2025. Contract documents were finalized by staff and advertised for construction in December 2025, with bid award expected in March 2026. The project is within budget and on schedule. (P2684) • Potable Pipeline Replacement Projects: The following set of pipelines is being replaced as a result of past failures, age, lack of redundancy, and/or improved fire flow. The 90% design plans are in progress and expected in the 3rd quarter of FY 2026: o PL - 8-inch, 850 Zone, Coronado Avenue, Chestnut/Apple (P2608) o PL - 8-inch, 1004 Zone, Eucalyptus Street, Coronado/Date/La Mesa (P2609) o PL - 12-inch Pipeline Replacement, 803 PZ, Vista Grande (P2615) o PL - 20-inch, 1296 Zone, Proctor Valley Road from Pioneer Way to Melody Road, “South Proctor Road” (P2171) 12 o PL - 20-inch, 1296 Zone, Proctor Valley Road from Melody Road to Schlee “North Proctor Road” (P2058) – All easements required to complete the CIP Improvements have either been recorded with the County or in process of closing escrow. Notice to proceed with Design plans have been provided to NV5 December of 2025. The project is within budget and on schedule. • Steele Canyon Road Bridge 20-inch Water Main and 6-inch Force Main Renovations: Steele Canyon Road Bridge 20-inch Water Main and 6-inch Force Main Renovations: Several sections of the existing pipelines were found to have corrosion pitting, primarily at pipe supports on the 20-inch steel potable water main and at pipe joints on the 6-inch steel sewer force main. While corrosion was identified, the pipelines remain structurally sound, maintain full operational capacity, and continue to provide reliable service. The first phase, which assessed the extent of the corrosion, has been completed, and staff has prepared repair recommendations. Materials for the 20-inch steel potable water main repairs have been ordered, and the work is being scheduled. The project remains within budget and on schedule. (P2687 & S2079) • Olympic Parkway Transmission Main Assessment and Repair: Several main breaks within the past few years on the 16-inch potable water line in Olympic Parkway between East Palomar Street and State Highway 125 resulted in the establishment of this Capital Improvement Program project through the annual budget process. This project is for the condition assessment and repair of interior joints within approximately 3,500 feet of the 16-inch cement mortar-lined and coated steel transmission main along Olympic Parkway east of East Palomar Street. Phase 1 of this project, an interior pipeline inspection to assess the condition of the interior pipeline joints, was completed in June 2025 following permit approvals from the City of Chula Vista and Caltrans. Staff evaluated the inspection results and are working on recommendations for the repairs of the pipeline. The project is within budget and on schedule. (P2706) • Cottonwood Sewer Pump Station Replacement: The project involves the replacement of the existing sewer pump station originally constructed in 1986 as a temporary facility due to operational and accessibility deficiencies. The station serves both the District and the County of San Diego customers on the south side of the Sweetwater River. The improvements will incorporate increased station capacity and the addition of emergency storage to avoid a sewage spill. The design is being prepared by Wood Rodgers, Inc. An alternative to reducing cost was confirmed with the District’s Operations staff, Wood Rodgers, and 13 the County on May 7, 2025. A third amendment to the Wood Rodgers professional services agreement corresponding to the cost savings alternative was executed on June 27, 2025. Wood Rodgers coordinated the Preliminary Design Report hydraulic calculations with pump field test data collected on September 24, 2025, and provided preliminary pump selections on November 7, 2025. Construction of the project is currently estimated for completion in Fiscal Year 2031. The project is within budget. (S2069) • 870-2 Reservoir and 870-1 Reservoir Floating Cover/Liner Replacement: This project consists of constructing a new 3.4 MG prestressed concrete potable water tank adjacent to the existing 870-1 Reservoir. The project also includes lowering the existing 870-1 Reservoir 30- inch inlet pipe and replacing the existing floating cover and liner within the existing 870-1 Reservoir. The construction contract was awarded to Pacific Hydrotech at the September 2024 Board Meeting. Pacific Hydrotech mobilized to the site on October 28, 2024. Pacific Hydrotech completed the new 870-2 Reservoir structure. Hydro-testing the tank scheduled for mid-January 2026. Both projects are within budget and on schedule. (P2228 & P2563) • Telegraph Rd – Hydrant Repair: In late April 2024, a vehicle accident damaged a dual-purpose blow-off valve and fire hydrant appurtenance located at 1052 Telegraph Canyon Road, Chula Vista, approximately 800 feet east of Heritage Road/Paseo Ranchero. The fire hydrant has been struck three (3) times by vehicles in the past seven (7) years. Notably, in the most recent incident, not only was there damage to the above-ground appurtenance, but when operating the 6-inch valve to isolate the fire hydrant, a break was identified near the 20-inch ACP water main. This water main is a major arterial water line and provides potable water to nearby critical infrastructure, including a hospital. Repairs to the pipeline are complicated due to the pipeline’s depth, requiring outside contractors with equipment to repair it at that elevation. The water main is approximately 16-feet deep near the fire hydrant. There are nearby utility crossings, which include a triple 6-foot by 10-foot box culvert, an 8-inch-high pressure gas line, a 36-inch storm drain, and a 30-inch steel casing on the 20-inch water main. The project was awarded to M-Rae Engineering at the February 5, 2025 Board Meeting. A Pre-Construction Meeting was held on June 24, 2025. A Notice to Proceed was issued on August 4, 2025. Repair was completed September 5, 2025 and the 20-inch main has been restored to service. Site restoration was completed by October 6, 2025. The project expenditures will come from the operating budget. Project acceptance is routing to the County for recordation and close out of the project. (P1000) 14 •1004-2 & 1485-2 Reservoir Interior/Exterior Coating & Upgrades: This project is for the interior and exterior coatings of the 1485-2 Reservoir, located at 15010 Lyons Valley Road, Jamul. This welded steel Reservoir has a 1.6-million-gallon capacity. Based upon the current inspection report, the interior and exterior coatings on the 1485-2 Reservoir are nearing the end of their useful lives and need replacement. The Reservoir was constructed in 2006 and has never been recoated. In addition to removing the existing interior and exterior coating and recoating the Reservoir, the project includes rafter replacement, seismic rod replacement, cathodic protection equipment replacement, and structural modifications. Additionally, the project includes door modifications to the 1004-2 Reservoir, located at 1711 Buena Vista Avenue, Spring Valley. This welded steel Reservoir has a 1.26-million-gallon capacity. The project was approved for award to Unified Field Services Corp. at the November 2024 Board Meeting with a budget adjustment. A Notice to Proceed was issued for January 13, 2025, and the contractor mobilized on January 14, 2025. The contractor completed the structural and mechanical repairs. The interior coating was completed on August 8, 2025. The exterior coating was completed October 1, 2025. The tank was returned to service on October 30, 2025. Staff are working on project acceptance. The project is within budget and on schedule. (P2631 & P2657) •711 Pump Station Replacement and Expansion and Potable Water Pressure Vessel Program (711 Pump Station Surge Tank): The 2015 Water Facilities Master Plan envisioned total replacement of the 711 Pump Station with a budget of $16M; however, the CIP P2578 concept was re- evaluated with a new concept to restore the original pump capacity while utilizing the pump station structure to reduce cost. The initial project will remove one (1) of the existing five (5) nominal 2,500 GPM pumps and replace it with a nominal 4,000 GPM pump and reconfigured discharge and suction piping as a pilot project. The 1990-era 711 Pump Station surge tank pressure vessel was inspected on August 30, 2021. The inspection report noted interior corrosion due to internal coating wear. The February 2021 inspection report also recommended reinspection the following year; however, District staff determined it was better to be proactive and replace rather than repair the surge tank vessel. Approval to pre-purchase a nominal 4,000 GPM pump to be included in the pilot project was authorized at the February 5, 2025 Board Meeting. The award of the construction contract for the pilot pump configuration and surge tank replacement was approved at the June 2025 Board Meeting. The contract was signed, and a Pre- construction Meeting was held on August 18, 2025. The contractor, Jennette Company, Inc., completed field measurements for steel pipe shop drawings on October 7, 2025. Jennette’s construction submittals 15 for materials with long leads times were approved with the exception of the surge tank as of early December 2025. The pre-purchased pump was delivered on December 20, 2025. The project is within budget and on schedule. (P2578 & P2663) •City of San Diego – Otay 2nd Pipeline Phase 4 Interconnections Relocation: The City of San Diego (City) is working on Phase 4 of the replacement and realignment of the 40-inch potable water line between Telegraph Canyon Road and Bonita Road with a 48-inch pipeline. The District has two interconnections to this line located at East H Street and Telegraph Canyon Road that will need to be replaced to conform to the new construction. The City recently completed the 100% design stage for the new pipeline. The District’s staff has reviewed the City’s 100% design and identified potential utility conflicts that are being coordinated with the City. The two potential interconnection relocations have been identified and are being considered. Additionally, new interconnection agreements with the City are being evaluated and will be finalized concurrently with the City finalizing their pipeline design. The City design is expected to be finalized at the end of FY 2027/beginning of FY 2028. The design is currently in the environmental permitting stage. (P2691) •City of Chula Vista – Heritage Road Replacement: The City of Chula Vista is constructing a new bridge crossing the Otay River at Heritage Road, which provides an opportunity for the District to relocate an existing pipeline out of the river into a more secure location. The City of Chula Vista opened bids in September 2024 and awarded the contract at their October 8, 2024 Council meeting. The District Board approved the reimbursement agreement on March 1, 2023. The City of Chula Vista Council approved the agreement at their January 7, 2025 Council meeting. The reimbursement deposit has been wired to the City of Chula Vista. Staff continue to process submittals and RFIs. Installation of the pipelines in the bridge began on September 8, 2025. The project is within budget. (P2553, P2405) •Sycuan Treatment Plant: The Sycuan Tribal Nation is working with the District to evaluate the feasibility of accepting processed solids from their proposed Recycled Water Treatment Plant. The District initiated a Task Order for NV5 to provide engineering services in the technical evaluation of accepting the solids stream, especially as it would combine with the municipal sewer flows into the Ralph W. Chapman Water Recycled Water Facility. This project is paused until additional funds are deposited. Staff observed that construction of the Sycuan facility started. On October 15, 2025, a letter was sent to Sycuan requesting clarification of their waste discharge location as no deposit had been received to allow for Otay’s continued evaluation. 16 Sycuan responded on October 17, with concerns about the letter. Otay staff provided clarifications on October 29, 2025 and reached out to Sycuan staff to continue coordination efforts. • Recycled/Reuse Feasibility: The Sweetwater Authority (SWA) and the District are working collaboratively through a Memorandum of Understanding (MOU) to evaluate the feasibility of extending water reuse into the SWA area. On February 7, 2024, a Professional Services Agreement (PSA) for a feasibility study was awarded by the Board to Carollo Engineers (Carollo). On June 20, 2024, the District was approved for grant funding from the Water Recycling Funding Program for the SWA and OWD Intertie Project for $300,000. The District, SWA, and Carollo are conducting biweekly progress meetings and collecting data for the Planning and Feasibility Report. Carollo is in the process of reviewing and assessing data from both agencies and coordinating additional data as needed. Carollo plans to submit draft chapters in three parts. A meeting with the leadership of SWA and Otay was held on August 14, 2025, to present a summary of the findings. A meeting was held with combined SWA and Otay Ad hoc on October 6, 2025, to review the draft findings prior to submitting the information to the State Board as the granting agency. A Reimbursement Request for all work completed in FY 2025 was submitted to the State Water Resources Control Board (SWRCB) in August 2025. Final comments were provided to Carollo in November 2025 to finalize the Draft Report. The Draft report has been submitted to the State Water Resources Control Board for Review. (R1254) • Otay Water District Climate Adaptation and Resilience Planning Project: On November 21, 2023, FEMA approved and issued Hazard Mitigation Grant Program (HMGP) funds for the preparation of a Climate Adaptation and Resilience Plan (CARP) for the District. FEMA authorized a total of $244,939.70. The CARP will include a risk and resilience assessment focusing on climate change. The CARP will also include the development of resilience and adaptation strategies to allow the District to prioritize risks. Strategies may include updated policies, built infrastructure-based measures, green infrastructure- based measures, operational approaches, staff training and tools, and communication and education for customers. As of November 2025, the consultant has completed the Energy Analysis and is now progressing onto the Risk/Vulnerability Assessment. The project is within budget and on schedule. (P1253) • Water Facilities Master Plan, Urban Water Management Plan, and Integrated Water Resources Plan: The Water Facilities Master Plan (WFMP) is periodically updated to identify and provide planning and 17 design data for future potable and recycled water capital improvement projects, along with the corresponding Program Environmental Impact Report (PEIR) update. The Urban Water Management Plan (UWMP) is required to be updated every five years to ensure long-term resource planning and to outline strategies for maintaining a reliable water supply under normal, dry, and drought conditions. The Integrated Resources Plan (IRP) is also periodically updated to support long- term planning by evaluating and prioritizing a range of water supply and demand management strategies to ensure a reliable and resilient water future. Work with the District’s consultant, Woodard and Curran, was initiated in the fourth quarter of FY 2025. The project is within budget and on schedule. (P1210) • Border Patrol – Canine Search and Rescue: An agreement with US Border Patrol – San Diego Sector was executed in late October 2025 to allow for canine search and rescue training at the Salt Creek Golf Course Property. • Sewage Flows to Metro vs Planned Capacity: The Metropolitan Water District Amended and Restated Regional Wastewater Disposal Agreement became fully effective at the start of FY 2023. The District’s annual capacity of 0.38 MGD (139 MG) is now in effect, though the District would need to exceed this capacity for three (3) consecutive years before additional capacity must be acquired. The Metropolitan Water District (Metro) capacity was set based upon the District’s sewer system requirements through planning year 2050. The current annual cumulative discharge total for FY 2026 is 15.47 MG, well below the 139 MG planned annual capacity. 18 •Summary of Budgeted and Sold Meters and EDUs for Fiscal Year 2026 through December 2025: OPERATIONS: •On Wednesday, December 17th, Pump Mechanics performed major preventive maintenance on control valve #1 at the 711 Pump Station. This work is essential to maintaining system reliability, reducing the risk of unplanned outages, and extending the service life of critical infrastructure. Preventive maintenance supports safe operations, protects capital assets, and helps avoid higher costs associated with emergency repairs or system failures. •On Monday, December 22nd, Water Systems staff assisted the Inspections section with a bacteriological sampling for a new tie-in. Staff loaded, flushed, and sampled a new section of water main located at Otay Mesa Road East of Van Center Blvd. in the Otay Mesa area (developer project# D1199). On Thursday, December 29th, the main was placed into service after bacteriological results passed. •On Monday, December 29th, Utility Maintenance staff repaired and pressure tested the broken three-inch suction line at Hidden Mountain wet well. Pump #1 was back in service on Monday, January 5th. •During the month of December, Fleet Maintenance staff oversaw the completion of the Bureau of Automotive Repair (BAR) mandated annual smog check report. 12 District vehicles were identified as part of the requirement for smog and all 12 passed. •The following events occurred on Wednesday, January 7th: o The State Water Resources Control Board (SWRCB) began a District- wide site inspection as part of the sanitary survey. The inspection included pump stations, chloramine booster systems, and storage tanks. The inspection portion of the survey will be expected to be completed in late January with a report following sometime Date Meters (Budgeted) Meters Sold (Actual) EDUs (Budgeted) EDUs Sold (Actual) Total $ (Budgeted) Total $ Collected (Actual) December 2025 7.8 3 31.8 18.5 $475,684 $260,783 Totals FY 2026 46.5 41 190.8 155 $2,854,104 $2,260,184 19 thereafter. The previous sanitary survey was conducted in July 2020. o Water Systems staff, in coordination with Utility Maintenance staff, performed an emergency shutdown at 12575 Old Campo Road in Jamul. This shutdown was performed to repair a 10-inch asbestos pipe main break. The section of 10-inch AC main was located beneath a large tree. As a temporary solution, two valves were installed on either side of the tree, isolating approximately 20 feet of AC main. The tree was removed on Monday, January 12th. On Tuesday, January 20th, the remaining trunk and roots were cleared. The final repair was completed on Wednesday, January 21st, and an air-vac/blow-off combination assembly was installed. The shutdown lasted approximately 22 hours and affected 78 meters, with four water trailers available for the affected customers (see photo). •On Monday, January 12th and Tuesday, January 13th, Water Systems staff assisted the Inspections section with warranty diver inspections of tanks 1004-2 and 485-1. The scope also included inspections of tanks 850-4 and 803-4 in preparation for the upcoming recoating. Diver inspections are conducted to assess interior coatings and structural integrity. Inspection reports will be provided and evaluated. •On Monday, January 13th, the annual inspection with the San Diego Air Pollution Contril District (SDAPCD) at 1050-1 Hydro Station was performed. The inspection is intended to review maintenance logs of the stationary engine to ensure compliance with emission standards. The result of the inspection was satisfactory, with no violations identified. •On Thursday, January 15th, Water Systems staff performed a planned shutdown at 342 La Presa Avenue in Spring Valley. This shutdown was conducted to allow a developer (developer project #D1168) to tie-in new section of an eight-inch water main. The shutdown lasted approximately 10 hours, three meters were affected, with one water trailer available on site for the affected customers. 20 • On Friday, January 16th, Water Systems staff performed a final walk- through inspection on a portion of Alta Road and Siempre Viva Road in the Otay Mesa area (developer project #D1132). No issues were noted on the punch list. Final walk-through inspections are required to ensure proper operation/construction of newly built District infrastructure before being accepted. • During this period: o As part of the predictive maintenance program, vibration testing was completed on 52 pumps and motors. The results did not identify any extreme measurements outside of the acceptable range. Vibration monitoring will continue on a quarterly basis. Vibration analysis is important since it allows early detection of mechanical faults in machinery, enabling preventative maintenance by identifying issues like shaft misalignment, wear bearing, or imbalance before they cause catastrophic failures, reducing downtime, improving efficiency, and saving costs. o Testing was conducted on 12 Automatic Transfer Switch (ATS) units, all of which were verified to be in satisfactory operating condition. Routine ATS testing is essential to ensure the reliable and automatic transfer of power during utility outages, protecting critical systems, and maintaining operational continuity. This testing confirms system readiness and reduces the risk of power failure during emergency conditions. o Electrical switchgear testing was completed at the 870-2 Pump Station, with no faults, deficiencies, or operational risks identified. This testing is critical to verifying the integrity and reliability of electrical distribution systems, ensuring safe operation, preventing unexpected failures, and supporting continuous service to critical facilities. o Fleet Maintenance staff completed eight California Highway Patrol (CHP) required Biennial Inspectional of Terminals (BIT). The completion of these inspections ensures the continued safe operation of district commercial vehicles and trailers as well as compliance with state law. o Fleet Maintenance staff completed quarterly emissions testing mandated by the SDAPCD at three District stationary engine sites. All three passed the emissions tests. 21 PURCHASE AND CHANGE ORDERS: •The following table summarizes purchase (PO) and change orders (CO) issued, within staff’s signatory authority, during the period of December 16, 2025 – January 15, 2026: Water Purchases: •Potable Water Purchases – The December potable water purchases were2,030 acre-feet which is 7.2% below the budget of 2,187 acre-feet.Cumulative purchases for the year are 15,296 acre-feet, 3.4% below the year-to-date budget of 15,828 acre-feet. 22 • Recycled Water Purchases – The recycled water purchases from the City of San Diego and production at the District’s treatment facility for the month of December were 163 acre-feet which is 10.2% below the budget of 181 acre-feet. Cumulative purchases and production for the year are 1,976 acre-feet, 18.0% below the year-to-date budget of 2,409 acre-feet. • The table below displays the year-to-date and monthly rainfall data for December. Rainfall December Y-T-D Actual 1.00 3.97 3-year Historical Average 0.81 2.47 Variance 0.19 23.5% 1.50 60.7% Potable, Recycled, and Sewer (Reporting up to the month of December): • Total number of potable water meters: 52,109. • Total number of sewer connections: 4,760. • Recycled water consumption for the month of December: o Total consumption: 141.02 acre-feet or 45,949,640 gallons. o Average daily consumption: 1,482,246 gallons per day. o Total cumulative recycled water consumption since December 2024: 2,263.02 acre-feet. o Total number of recycled water meters: 815. • Wastewater flows for the month of December: 23 o Total basin flow: 1,584,742 gallons per day. This is a decrease of 4.2 percent from December 2024. o Spring Valley Sanitation District flows to Metro: 529,963 gallons per day. o Total Otay flow: 1,054,806 gallons per day. o Flow processed at the Ralph W. Chapman Water Recycling Facility: 1,011,710 gallons per day. o Flow to Metro from Otay Water District: 43,097 gallons per day. o By the end of December there were 6,761 wastewater EDUs. Exhibit A FOR THE PERIOD ENDING DECEMBER 31, 2025 Annual YTD REVENUES:Budget Actual Budget Variance Var % Potable Water Sales 81,546,000$ 41,656,412 44,618,050 (2,961,638) (6.6%) Recycled Water Sales 11,620,000 6,636,772 7,244,800 (608,028) (8.4%) Potable Energy Charges 4,236,000 2,443,696 2,568,000 (124,304) (4.8%) Potable System Charges 15,518,000 7,445,162 7,459,000 (13,838) (0.2%) Potable MWD & CWA Fixed Charges 18,695,000 8,776,960 8,817,600 (40,640) (0.5%) Potable Penalties and Other Fees 1,200,000 675,554 674,100 1,454 0.2% Total Water Sales 132,815,000 67,634,556 71,381,550 (3,746,994) (5.2%) Sewer Charges 3,564,000 1,732,473 1,727,000 5,473 0.3% Meter Fees 80,000 34,134 39,800 (5,666) (14.2%) Capacity Fee Revenues 3,278,000 1,619,178 1,639,000 (19,822) (1.2%) Non-Operating Revenues 2,618,900 1,263,652 1,309,300 (45,648) (3.5%) Tax Revenues 6,854,000 2,915,059 2,746,600 168,459 6.1% Interest 898,000 473,212 448,800 24,412 5.4% Total Revenues 150,107,900$ 75,672,264 79,292,050 (3,619,786) (4.6%) EXPENSES: Potable Water Purchases 58,785,000$ 30,431,952 31,593,900 1,161,948 3.7% Recycled Water Purchases 7,272,000 4,118,000 4,118,000 - 0.0% CWA-Fixed Transportation Charge 2,731,000 1,098,179 1,146,000 47,821 4.2% CWA-Infrastructure Access Charge 3,288,000 1,577,595 1,644,000 66,405 4.0% CWA-Customer Service Charge 2,388,000 1,098,179 1,146,000 47,821 4.2% CWA-Reliability Charge 4,326,000 1,875,018 2,136,000 260,982 12.2% CWA-Emergency Storage Charge 5,502,000 2,504,425 2,610,000 105,575 4.0% MWD-Capacity Res Charge 1,092,000 494,761 516,000 21,239 4.1% MWD-Readiness to Serve Charge 648,000 341,257 324,000 (17,257) (5.3%) Subtotal Water Purchases 86,032,000 43,539,366 45,233,900 1,694,534 3.7% Power Charges 4,643,000 2,393,739 2,629,300 235,561 9.0% Payroll & Related Costs 29,796,300 15,083,048 16,031,800 948,752 5.9% Materials & Maintenance 5,476,200 2,835,037 2,739,100 (95,937) (3.5%) Administrative Expenses 10,688,700 4,339,780 5,330,900 991,120 18.6% Legal Fees 1,180,000 1,178,173 590,000 (588,173) (99.7%) Expansion Reserve 1,477,700 738,900 738,900 - 0.0% Betterment Reserve 9,076,000 4,538,000 4,538,000 - 0.0% OPEB Trust 671,000 335,500 335,500 - 0.0% General Fund Reserve 1,067,000 533,500 533,500 - 0.0% Total Expenses 150,107,900$ 75,515,043 78,700,900 3,185,857 4.0% EXCESS REVENUES(EXPENSES)-$ 157,221 591,150 (433,929) OTAY WATER DISTRICT COMPARATIVE BUDGET SUMMARY F:/MORPT/FS2026-P6 Dec25 v2 1/23/2026 9:29 AM The year-to-date excess revenue of $157,221 is $433,929 lower than the budgeted excess revenues of $591,150. The negative variance is driven by overall lower sales volumes due to below-average temperatures and above-average precipitation. COMPARATIVE BUDGET SUMMARY NET REVENUE AND EXPENSES FOR THE PERIOD ENDING DECEMBER 31, 2025 -$1,800,000 -$1,600,000 -$1,400,000 -$1,200,000 -$1,000,000 -$800,000 -$600,000 -$400,000 -$200,000 $0 $200,000 $400,000 $600,000 $800,000 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN YTD Actual Net Revenues YTD Budget Net Revenues YTD Variance in Net Revenues OTAY WATER DISTRICT INVESTMENT PORTFOLIO REVIEW December 31, 2025 INVESTMENT OVERVIEW & MARKET STATUS: At the Federal Reserve Board's regular meeting on December 10, 2025, the Committee decided to lower the target range for the federal funds rate from 3.75-4.00% to 3.50%-3.75%, in support of its goals and considering the shift in the balance of risks. At that meeting, the Committee felt economic activity moderated in the first half of the year. The Committee will evaluate the risk balance, outlook, and incoming data prior to making any modifications to the federal funds target range. It is intended to support employment and restore inflation to its 2% objective by decreasing Treasury securities and agency debt. The Committee will continue to observe the effects of incoming information on the economic outlook. In determining the timing and size of future adjustments to the target range for the federal funds rate, they went on to say: "The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals. The Committee's assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments." The District's effective rate of return for December 2025 was 3.99%, which was six basis points lower than the previous month. LAIF's return was seven basis points lower than last month with an average effective yield of 4.03% for December 2025. The District has maintained a competitive long-term rate of return on the portfolio. The current investment strategy includes an increased level of liquidity above historical levels to meet anticipated higher liquidity requirements. As part of the District’s continued strategy, staff continuously monitors investment options and liquidity needs. Currently no changes in investment strategy are being considered based on a competitive rate of return and increased liquidity requirements Under the District's Investment Policy, all District funds continue to be managed based on the objectives, in priority order, of safety, liquidity, and return on investment. PORTFOLIO COMPLIANCE: December 31, 2025 Investment State Limit Otay Limit Otay Actual 8.01: Treasury Securities 100% 100% 8.19% 8.02: Local Agency Investment Fund (Operations) $75 Million $75 Million $73.64 Million 8.03: Federal Agency Issues 100% 100% 5.46% 8.04: Certificates of Deposit 30% 15% 0 8.05: Short-Term Commercial Notes 25% 10% 0 8.06: Medium-Term Commercial Debt 30% 10% 0 8.07: Money Market Mutual Funds1 20% 10% 10.72% 8.08: San Diego County Pool 100% 100% 7.42% 12.0: Maximum Single Financial Institution 100% 50% 0.92% 1Two agencies, with a total of $15 million, were called and matured at the end of December. The funds were then transferred in January. $1,008,555 0.92% $81,751,030 74.71% $26,663,957 24.37% Otay Water District Investment Portfolio: 12/31/2025 Banks (Passbook/Checking/CD)Pools (LAIF & County)Agencies,Treasury Securities & Money Market Mutual Funds Total Cash and Investments: $109,423,542 (Book Value) Jul FY25 Aug FY25 Sep FY25 1st Qtr FY25 Oct FY25 Nov FY25 Dec FY25 2nd Qtr FY25 Jan FY25 Feb FY25 Mar FY25 3rd Qtr FY25 Apr FY25 May FY25 Jun FY25 4th Qtr FY25 Jul FY26 Aug FY26 Sep FY26 1st Qtr FY26 Oct FY26 Nov FY26 Dec FY26 2nd Qtr FY26 Otay 4.13 4.21 4.23 4.19 4.16 4.16 4.08 4.13 4.10 4.37 4.11 4.19 4.10 4.08 4.10 4.09 4.05 4.00 4.02 4.02 4.04 4.05 3.99 4.03 LAIF 4.52 4.58 4.58 4.56 4.52 4.48 4.43 4.48 4.37 4.33 4.31 4.34 4.29 4.27 4.27 4.28 4.26 4.25 4.21 4.24 4.15 4.10 4.03 4.09 Difference -0.39 -0.37 -0.35 -0.37 -0.36 -0.32 -0.35 -0.34 -0.27 0.04 -0.20 -0.14 -0.19 -0.19 -0.17 -0.19 -0.21 -0.25 -0.19 -0.22 -0.11 -0.05 -0.04 -0.07 -1.00 0.00 1.00 2.00 3.00 4.00 5.00 Re t u r n o n I n v e s t m e n t s Month Performance Measure FY-26 Return on Investment Otay LAIF Difference Target: Meet or Exceed 100% of LAIF Month End Portfolio Management December 31, 2025 Portfolio Summary % of Portfolio Book ValueInvestmentsMarket Value Par Value Days to MaturityTerm YTM 360 Equiv. YTM 365 Equiv. Treasury Securities - Coupon 8,964,925.07 4908.27 3.8183058,980,810.009,000,000.00 3.871 Federal Agency Issues - Bullet 5,972,358.85 7465.51 4.1973856,008,820.006,000,000.00 4.256 Money Market 11,726,673.20 110.82 3.551111,726,673.2011,726,673.20 3.600 Local Agency Investment Fund (LAIF)73,636,668.59 167.92 3.970173,778,756.5173,636,668.59 4.025 San Diego County Pool 8,114,361.43 17.48 3.87618,230,000.008,114,361.43 3.930 108,414,987.14 100.00%Investments 108,725,059.71108,477,703.22 82 47 3.917 3.972 Cash (not included in yield calculations)Passbook/Checking 1,008,555.32 1 1.51911,008,555.321,008,555.32 1.540 109,423,542.46Total Cash and Investments 109,733,615.03109,486,258.54 82 47 3.917 3.972 Current Year December 31 363,238.98 Fiscal Year To Date 2,124,904.97 Average Daily Balance Effective Rate of Return 107,295,815.79 103,991,950.92 4.05%3.99% Total Earnings Month Ending I hereby certify that the investments contained in this report are made in accordance with the District Investment Policy Number 27 adopted by the Board of Directors on May 07, 2025. The investments provide sufficient liquidity to meet the cash flow requirements of the District for the next six months of expenditures. __________________________________________________ _____01/22/2026___________Joe Beachem, Chief Financial Officer Portfolio OTAY NL! APData Updated: SET_PM1: 01/21/2026 13:14 Reporting period 12/01/2025-12/31/2025 Run Date: 01/21/2026 - 13:14 PM (PRF_PM1) 7.3.11 Report Ver. 7.3.11 YTM 360 Page 1 Par Value Book Value MaturityDateStatedRateMarket Value December 31, 2025 Portfolio Details - Investments AverageBalanceIssuer Portfolio Management Month End Days to MaturityMoody'sCUSIPInvestment # Purchase Date Federal Agency Issues- Callable 7,016,129.03Subtotal and Average Treasury Securities - Coupon 4.143US TREASURY2427 1,000,000.00 995,397.06 03/31/20262.25002/05/2025 996,710.00 Aa19128286L9 89 4.034US TREASURY2428 1,000,000.00 995,647.23 03/31/20262.25003/27/2025 996,710.00 Aa19128286L9 89 3.897US TREASURY2429 1,000,000.00 1,000,743.69 06/15/20264.12504/25/2025 1,002,780.00 Aa191282CHH7 165 4.016US TREASURY2430 1,000,000.00 995,878.79 09/30/20263.50005/23/2025 999,270.00 Aa191282CLP4 272 3.977US TREASURY2431 1,000,000.00 998,168.99 08/31/20263.75006/13/2025 1,001,080.00 Aa191282CLH2 242 3.728US TREASURY2433 1,000,000.00 984,668.83 03/31/20272.50008/19/2025 987,620.0091282CEF4 454 3.546US TREASURY2434 1,000,000.00 1,004,029.32 01/15/20274.00009/17/2025 1,004,800.00 Aa191282CJT9 379 3.547US TREASURY2435 1,000,000.00 1,002,126.54 04/30/20273.75010/08/2025 1,003,130.00 Aa191282CMY4 484 3.472US TREASURY2436 1,000,000.00 988,264.62 07/31/20272.75011/13/2025 988,710.00 Aa191282CFB2 576 8,964,925.078,980,810.009,000,000.0016,220,849.30Subtotal and Average 3.818 305 Federal Agency Issues - Bullet 4.932Federal Farm Credit Bank2420 1,000,000.00 999,366.32 03/05/20264.62504/17/2024 1,001,790.00 Aa13133EP4K8 63 4.679Federal Farm Credit Bank2421 1,000,000.00 1,000,064.18 05/06/20274.75005/28/2024 1,016,320.00 Aa13133ERDS7 490 4.060Federal Farm Credit Bank2423 2,000,000.00 2,000,162.92 12/16/20264.12512/16/2024 2,012,120.00 Aa13133ERK42 349 3.560Federal Farm Credit Bank2437 1,000,000.00 997,961.34 12/09/20273.50012/10/2025 1,000,180.00 Aa13133ET3G0 707 3.886Federal Home Loan Bank2432 1,000,000.00 974,804.09 12/21/20261.25007/17/2025 978,410.00 Aa13130AQF65 354 5,972,358.856,008,820.006,000,000.005,681,467.73Subtotal and Average 4.197 385 Money Market 3.807Blackrock T - Fund Inst9010 4,081.30 4,081.30 3.8604,081.30RESERVE-10A WRB 1 3.590Blackrock T - Fund Inst9011 3,893,902.81 3,893,902.81 3.6403,893,902.81RESERVE 10 BABS 1 3.531FIRST AMERICAN US TREASURY9016 7,828,689.09 7,828,689.09 3.5807,828,689.09OWD TRUST & CUS 1 11,726,673.2011,726,673.2011,726,673.204,379,294.99Subtotal and Average 3.551 1 Local Agency Investment Fund (LAIF) 3.970STATE OF CALIFORNIA9001 73,636,668.59 73,636,668.59 4.02573,778,756.51LAIF 1 73,636,668.5973,778,756.5173,636,668.5971,097,958.91Subtotal and Average 3.970 1 San Diego County Pool 3.876San Diego County9007 8,114,361.43 8,114,361.43 3.9308,230,000.00SD COUNTY POOL 1 8,114,361.438,230,000.008,114,361.43630,291.00Subtotal and Average 3.876 1 Portfolio OTAY NL! APData Updated: SET_PM1: 01/21/2026 13:14 Run Date: 01/21/2026 - 13:14 PM (PRF_PM2) 7.3.11 Report Ver. 7.3.11 YTM 360 Page 2 Par Value Book Value StatedRateMarket Value December 31, 2025 Portfolio Details - Investments AverageBalanceIssuer Portfolio Management Month End Days to MaturityMoody'sCUSIPInvestment # Purchase Date 107,295,815.79 108,477,703.22 3.917 47108,725,059.71 108,414,987.14Total and Average Portfolio OTAY NL! APData Updated: SET_PM1: 01/21/2026 13:14 Run Date: 01/21/2026 - 13:14 PM (PRF_PM2) 7.3.11 YTM 360 Page 3 Par Value Book Value StatedRateMarket Value December 31, 2025 Portfolio Details - Cash AverageBalanceIssuer Portfolio Management Month End Days to MaturityMoody'sCUSIP Investment # Purchase Date US Bank 0.000STATE OF CALIFORNIA9003 3,100.00 3,100.003,100.00PETTY CASH 1 1.627STATE OF CALIFORNIA9004 941,472.08 941,472.08 1.650941,472.08OPERATING 1 0.000STATE OF CALIFORNIA9005 4,554.79 4,554.7907/01/2025 4,554.79PAYROLL 1 0.000STATE OF CALIFORNIA9014 29,543.34 29,543.3407/01/2025 29,543.34FLEX ACCT 1 0.000California Bank & Trust9017 29,885.11 29,885.1102/11/1999 29,885.11GRANT FUNDS 1 0.00 107,295,815.79 109,486,258.54 3.917 47 1Average Balance 109,733,615.03 109,423,542.46Total Cash and Investments Portfolio OTAY NL! APData Updated: SET_PM1: 01/21/2026 13:14 Run Date: 01/21/2026 - 13:14 PM (PRF_PM2) 7.3.11 Month End Activity Report Sorted By Issuer December 1, 2025 - December 31, 2025 Current Rate Transaction Date Balance Beginning Balance Ending Par Value Percent of Portfolio Par Value CUSIP Investment # Issuer Purchases or Deposits Redemptions or Withdrawals Issuer: Blackrock T - Fund Inst Money Market Blackrock T - Fund Inst9010 468.203.860 0.00RESERVE-10A WRB Blackrock T - Fund Inst9011 11,848.373.640 0.00RESERVE 10 BABS 0.003,885,667.54 3,897,984.11Subtotal and Balance 12,316.57 12,316.57 0.003,885,667.54 3,897,984.113.560%Issuer Subtotal Issuer: STATE OF CALIFORNIA US Bank STATE OF CALIFORNIA9004 894,956.051.650 1,297,153.41OPERATING STATE OF CALIFORNIA9014 15.09 10,654.46FLEX ACCT 1,307,807.871,391,506.94 978,670.21Subtotal and Balance 894,971.14 Local Agency Investment Fund (LAIF) STATE OF CALIFORNIA9001 9,300,000.004.025 5,300,000.00LAIF 5,300,000.0069,636,668.59 73,636,668.59Subtotal and Balance 9,300,000.00 10,194,971.14 6,607,807.8771,028,175.53 74,615,338.8068.150%Issuer Subtotal Issuer: California Bank & Trust US Bank 29,885.11 29,885.11Subtotal and Balance 0.00 0.0029,885.11 29,885.110.027%Issuer Subtotal Issuer: FIRST AMERICAN US TREASURY Money Market FIRST AMERICAN US TREASURY9016 16,391,940.793.580 8,697,997.22OWD TRUST & CUS 8,697,997.22134,745.52 7,828,689.09Subtotal and Balance 16,391,940.79 16,391,940.79 8,697,997.22134,745.52 7,828,689.097.150%Issuer Subtotal Portfolio OTAY NL! APData Updated: SET_PM1: 01/21/2026 13:14 Run Date: 01/21/2026 - 13:14 DA (PRF_DA) 7.3.11 Report Ver. 7.3.11 Current Rate Transaction Date Balance Beginning Balance Ending Par Value Page 2 Percent of Portfolio Par Value December 1, 2025 - December 31, 2025 Activity Report Month End CUSIP Investment # Issuer Purchases or Deposits Redemptions or Withdrawals Issuer: Federal Farm Credit Bank Federal Agency Issues - Bullet Federal Farm Credit Bank2437 1,000,000.003.500 12/10/2025 0.003133ET3G0 0.004,000,000.00 5,000,000.00Subtotal and Balance 1,000,000.00 1,000,000.00 0.004,000,000.00 5,000,000.004.567%Issuer Subtotal Issuer: Federal Home Loan Bank Federal Agency Issues- Callable Federal Home Loan Bank2425 0.004.350 12/30/2025 7,500,000.003130B4DY4 7,500,000.007,500,000.00 0.00Subtotal and Balance 0.00 Federal Agency Issues - Bullet 1,000,000.00 1,000,000.00Subtotal and Balance 0.00 7,500,000.008,500,000.00 1,000,000.000.913%Issuer Subtotal Issuer: San Diego County San Diego County Pool San Diego County9007 8,000,412.223.930 0.00SD COUNTY POOL 0.00113,949.21 8,114,361.43Subtotal and Balance 8,000,412.22 8,000,412.22 0.00113,949.21 8,114,361.437.411%Issuer Subtotal Issuer: US TREASURY Treasury Securities - Coupon US TREASURY2426 0.004.250 12/31/2025 7,500,000.0091282CJS1 7,500,000.0016,500,000.00 9,000,000.00Subtotal and Balance 0.00 0.00 7,500,000.0016,500,000.00 9,000,000.008.220%Issuer Subtotal 104,192,422.91 109,486,258.54Total 30,305,805.0935,599,640.72100.000% Portfolio OTAY NL! APData Updated: SET_PM1: 01/21/2026 13:14 Run Date: 01/21/2026 - 13:14 DA (PRF_DA) 7.3.11 Report Ver. 7.3.11 Month End Duration Report Sorted by Investment Type - Investment Type Through 12/31/2025 Investment #Security ID Issuer Investment Class Book Value Par Value Market Value Current Rate YTM Current Yield Maturity/ Call Date Duration Modified 360Fund US TREASURY242799 1,000,000.00 996,710.009128286L9 3.603 03/31/2026 0.243995,397.06 4.143Fair2.2500000 US TREASURY242899 1,000,000.00 996,710.009128286L9 3.603 03/31/2026 0.243995,647.23 4.034Fair2.2500000 US TREASURY242999 1,000,000.00 1,002,780.0091282CHH7 3.506 06/15/2026 0.4521,000,743.69 3.897Fair4.1250000 US TREASURY243099 1,000,000.00 999,270.0091282CLP4 3.605 09/30/2026 0.722995,878.79 4.016Fair3.5000000 US TREASURY243199 1,000,000.00 1,001,080.0091282CLH2 3.590 08/31/2026 0.640998,168.99 3.977Fair3.7500000 US TREASURY243399 1,000,000.00 987,620.0091282CEF4 3.523 03/31/2027 1.204984,668.83 3.728Fair2.5000000 US TREASURY243499 1,000,000.00 1,004,800.0091282CJT9 3.527 01/15/2027 0.9911,004,029.32 3.546Fair4.0000000 US TREASURY243599 1,000,000.00 1,003,130.0091282CMY4 3.510 04/30/2027 1.2791,002,126.54 3.547Fair3.7500000 US TREASURY243699 1,000,000.00 988,710.0091282CFB2 3.490 07/31/2027 1.514988,264.62 3.472Fair2.7500000 Federal Farm Credit Bank242099 1,000,000.00 1,001,790.003133EP4K8 3.574 03/05/2026 0.172999,366.32 4.932Fair4.6250000 Federal Farm Credit Bank242199 1,000,000.00 1,016,320.003133ERDS7 3.502 05/06/2027 1.2901,000,064.18 4.679Fair4.7500000 Federal Farm Credit Bank242399 2,000,000.00 2,012,120.003133ERK42 3.478 12/16/2026 0.9322,000,162.92 4.060Fair4.1250000 Federal Home Loan Bank243299 1,000,000.00 978,410.003130AQF65 3.529 12/21/2026 0.952974,804.09 3.886Fair1.2500000 Federal Farm Credit Bank243799 1,000,000.00 1,000,180.003133ET3G0 3.491 12/09/2027 1.855997,961.34 3.560Fair3.5000000 Blackrock T - Fund Inst901099 4,081.30 4,081.30RESERVE-10A 3.860 0.0004,081.30 3.807Amort3.8600000 Blackrock T - Fund Inst901199 3,893,902.81 3,893,902.81RESERVE 10 3.640 0.0003,893,902.81 3.590Amort3.6400000 FIRST AMERICAN US 9016 99 7,828,689.09 7,828,689.09OWD TRUST & 3.580 0.0007,828,689.09 3.531Amort3.5800000 STATE OF CALIFORNIA900199 73,636,668.59 73,778,756.51LAIF 4.025 0.00073,636,668.59 3.970Fair4.0250000 San Diego County900799 8,114,361.43 8,230,000.00SD COUNTY 3.930 0.0008,114,361.43 3.876Fair3.9300000 3.904 0.123108,414,987.14 108,477,703.22 108,725,059.71Report Total † = Duration can not be calculated on these investments due to incomplete Market price data. Portfolio OTAY NL! AP Page 1 Data Updated: SET_PM1: 01/21/2026 13:14 Run Date: 01/21/2026 - 13:14 DU (PRF_DU) 7.3.11 Report Ver. 7.3.11 Month End GASB 31 Compliance Detail Sorted by Fund - Fund December 1, 2025 - December 31, 2025 Investment #Maturity Date BeginningInvested Value Purchaseof Principal Investment ClassFundCUSIP Adjustment in Value EndingInvested ValueAdditionto Principal Redemptionof Principal AmortizationAdjustment Change inMarket Value Fund: Treasury Fund 2432 977,310.00Fair Value 12/21/2026 1,100.0099 978,410.003130AQF650.00 0.00 0.00 0.00 2425 7,500,675.00Fair Value 12/30/2026 -675.0099 0.003130B4DY40.00 0.00 7,500,000.00 0.00 9003 3,100.00Amortized 0.0099 3,100.00PETTY CASH 0.00 0.00 0.00 0.00 9004 1,343,669.44Amortized 0.0099 941,472.08OPERATING0.00 894,956.05 1,297,153.41 0.00 9005 4,554.79Amortized 0.0099 4,554.79PAYROLL0.00 0.00 0.00 0.00 9014 40,182.71Amortized 0.0099 29,543.34FLEX ACCT 0.00 15.09 10,654.46 0.00 9001 69,771,038.18Fair Value 7,718.3299 73,778,756.51LAIF0.00 9,300,000.00 5,300,000.00 0.00 2421 1,016,160.00Fair Value 05/06/2027 160.0099 1,016,320.003133ERDS70.00 0.00 0.00 0.00 2437 0.00Fair Value 12/09/2027 2,280.0099 1,000,180.003133ET3G0997,900.00 0.00 0.00 0.00 2420 1,002,020.00Fair Value 03/05/2026 -230.0099 1,001,790.003133EP4K80.00 0.00 0.00 0.00 2423 2,011,080.00Fair Value 12/16/2026 1,040.0099 2,012,120.003133ERK420.00 0.00 0.00 0.00 9017 29,885.11Amortized 0.0099 29,885.11GRANT FUNDS 0.00 0.00 0.00 0.00 2433 986,090.00Fair Value 03/31/2027 1,530.0099 987,620.0091282CEF40.00 0.00 0.00 0.00 2434 1,004,220.00Fair Value 01/15/2027 580.0099 1,004,800.0091282CJT90.00 0.00 0.00 0.00 2435 1,002,420.00Fair Value 04/30/2027 710.0099 1,003,130.0091282CMY40.00 0.00 0.00 0.00 2431 1,000,230.00Fair Value 08/31/2026 850.0099 1,001,080.0091282CLH20.00 0.00 0.00 0.00 2436 987,270.00Fair Value 07/31/2027 1,440.0099 988,710.0091282CFB20.00 0.00 0.00 0.00 2427 994,930.00Fair Value 03/31/2026 1,780.0099 996,710.009128286L90.00 0.00 0.00 0.00 2430 998,580.00Fair Value 09/30/2026 690.0099 999,270.0091282CLP40.00 0.00 0.00 0.00 2429 1,002,200.00Fair Value 06/15/2026 580.0099 1,002,780.0091282CHH70.00 0.00 0.00 0.00 2426 7,502,550.00Fair Value 12/31/2025 -2,550.0099 0.0091282CJS10.00 0.00 7,500,000.00 0.00 2428 994,930.00Fair Value 03/31/2026 1,780.0099 996,710.009128286L90.00 0.00 0.00 0.00 9007 115,000.00Fair Value 114,587.7899 8,230,000.00SD COUNTY POOL 0.00 8,000,412.22 0.00 0.00 9016 134,745.52Amortized 0.0099 7,828,689.09OWD TRUST & CUS 0.00 16,391,940.79 8,697,997.22 0.00 9011 3,882,054.44Amortized 0.0099 3,893,902.81RESERVE 10 BABS 0.00 11,848.37 0.00 0.00 9010 3,613.10Amortized 0.0099 4,081.30RESERVE-10A WRB 0.00 468.20 0.00 0.00 104,308,508.29Subtotal 133,371.10 109,733,615.03997,900.00 34,599,640.72 30,305,805.09 0.00 104,308,508.29Total 109,733,615.03133,371.10997,900.00 34,599,640.72 30,305,805.09 0.00 Portfolio OTAY NL! APData Updated: SET_PM1: 01/21/2026 13:14 Run Date: 01/21/2026 - 13:14 GD (PRF_GD) 7.3.11 Report Ver. 7.3.11 Month End Interest Earnings Sorted by Fund - Fund December 1, 2025 - December 31, 2025 Yield on Beginning Book Value Maturity Date Current Rate Ending Par Value EndingSecurity TypeFund Book Value Beginning Book Value Adjusted Interest Earnings Accretion Amortization /Earnings Adjusted InterestAnnualized YieldCUSIP Investment # Interest Earned Fund: Treasury Fund 974,804.092432 1,000,000.00 1.250FAC 12/21/2026 1,041.66 2,159.65 3,201.313.87599 972,644.443130AQF65 0.002425 0.00 4.350MC1 12/30/2026 26,281.25 0.00 26,281.254.41099 7,500,000.003130B4DY4 3,100.009003 3,100.00PA1 0.00 0.00 0.0099 3,100.00PETTY CASH 941,472.089004 941,472.08 1.650PA1 3,073.38 0.00 3,073.382.69399 1,343,669.44OPERATING 4,554.799005 4,554.79PA1 0.00 0.00 0.0099 4,554.79PAYROLL 29,543.349014 29,543.34PA1 0.00 0.00 0.0099 40,182.71FLEX ACCT 73,636,668.599001 73,636,668.59 4.025LA1 243,047.89 0.00 243,047.894.10999 69,636,668.59LAIF 1,000,064.182421 1,000,000.00 4.750FAC 05/06/2027 3,958.33 -3.97 3,954.364.65699 1,000,068.153133ERDS7 997,961.342437 1,000,000.00 3.500FAC 12/09/2027 2,041.67 61.34 2,103.013.49699 0.003133ET3G0 999,366.322420 1,000,000.00 4.625FAC 03/05/2026 3,854.17 297.03 4,151.204.89299 999,069.293133EP4K8 2,000,162.922423 2,000,000.00 4.125FAC 12/16/2026 6,875.00 -14.16 6,860.844.03999 2,000,177.083133ERK42 29,885.119017 29,885.11PA1 0.00 0.00 0.0099 29,885.11GRANT FUNDS 984,668.832433 1,000,000.00 2.500TRC 03/31/2027 2,129.12 1,046.84 3,175.963.80299 983,621.9991282CEF4 1,004,029.322434 1,000,000.00 4.000TRC 01/15/2027 3,369.56 -329.57 3,039.993.56499 1,004,358.8991282CJT9 1,002,126.542435 1,000,000.00 3.750TRC 04/30/2027 3,211.32 -136.20 3,075.123.61399 1,002,262.7491282CMY4 998,168.992431 1,000,000.00 3.750TRC 08/31/2026 3,211.32 234.55 3,445.874.06699 997,934.4491282CLH2 988,264.622436 1,000,000.00 2.750TRC 07/31/2027 2,316.57 631.59 2,948.163.51599 987,633.0391282CFB2 995,397.062427 1,000,000.00 2.250TRC 03/31/2026 1,916.21 1,603.27 3,519.484.17099 993,793.799128286L9 995,878.792430 1,000,000.00 3.500TRC 09/30/2026 2,980.77 469.70 3,450.474.08199 995,409.0991282CLP4 1,000,743.692429 1,000,000.00 4.125TRC 06/15/2026 3,504.38 -139.72 3,364.663.95899 1,000,883.4191282CHH7 0.002426 0.00 4.250TRC 12/31/2025 25,985.05 -489.64 25,495.414.13699 7,500,489.6491282CJS1 995,647.232428 1,000,000.00 2.250TRC 03/31/2026 1,916.21 1,516.13 3,432.344.06599 994,131.109128286L9 8,114,361.439007 8,114,361.43 3.930LA3 2,103.79 0.00 2,103.7921.73899 113,949.21SD COUNTY POOL 7,828,689.099016 7,828,689.09 3.580PA2 1,463.45 0.00 1,463.4512.78899 134,745.52OWD TRUST & CUS 3,893,902.819011 3,893,902.81 3.640PA2 12,038.03 0.00 12,038.033.65199 3,882,054.44RESERVE 10 BABS 4,081.309010 4,081.30 3.860PA2 13.01 0.00 13.014.24099 3,613.10RESERVE-10A WRB 109,486,258.54Subtotal 109,423,542.46 3.909 363,238.986,906.84356,332.14104,124,899.99 109,486,258.54Total 109,423,542.46 3.909 363,238.986,906.84356,332.14104,124,899.99 Portfolio OTAY NL! APData Updated: SET_PM1: 01/21/2026 13:14 Run Date: 01/21/2026 - 13:14 IE (PRF_IE) 7.3.11 Report Ver. 7.3.11 Check Num Check Amt Invoice Description Invoice Total Check Dt Vendor Num Invoice Num 2065031 663.56 ELEVATOR GENERAL MAINT 663.56 12/30/2025 15416 205256 2065167 663.56 ELEVATOR GENERAL MAINT 663.56 1/21/2026 15416 207327 2065168 17,583.05 CLIMATE ADAPTATION/RESILIENCE 17,583.05 1/21/2026 22463 20256135 2065085 975.00 SHAREPOINT & INTRANET SUPP 975.00 1/7/2026 8488 13443 2065086 1,353.09 INTERNET CIRCUITS - DEC 2025 1,353.09 1/7/2026 18122 3449840110 2065073 1,396.28 UB REFUND 0000306207 1,396.28 12/30/2025 99999 ubRef123125006 AS-NEEDED AQUA AMMONIA DELIVERY 655.60 12/30/2025 7732 9167217785 AS-NEEDED AQUA AMMONIA DELIVERY 1,954.15 12/30/2025 7732 9167217773 AS-NEEDED AQUA AMMONIA DELIVERY 2,405.15 12/30/2025 7732 9167217794 AS-NEEDED AQUA AMMONIA DELIVERY 315.15 1/7/2026 7732 9167717759 AS-NEEDED AQUA AMMONIA DELIVERY 583.00 1/7/2026 7732 9167717768 AS-NEEDED AQUA AMMONIA DELIVERY 1,255.65 1/7/2026 7732 9167717758 2065033 2,575.00 FIRE LIFE SAFETY SERVICE 2,575.00 12/30/2025 18296 PIN0050695 2065034 46,149.02 RETENTION/PACIFIC HYDROTECH 46,149.02 12/30/2025 22643 1211302025 2065169 35,692.37 RETENTION/PACIFIC HYDROTECH 35,692.37 1/21/2026 22643 1312312025 BILLING ADMINISTRATION 80.00 1/21/2026 22138 941835 BILLING ADMINISTRATION 230.10 1/21/2026 22138 944057 2065171 5,033.69 10" OMNI REGISTER AND MMP 4,671.64 1/21/2026 3492 0111865 2065088 178,983.70 PROF SERV - NOV 2025 178,983.70 1/7/2026 17264 310699 2065130 31,990.00 MEMBERSHIP RENEWAL 31,990.00 1/14/2026 108 09302025 2065089 3,761.62 TELEPHONE SERVICES - DEC 2025 3,761.62 1/7/2026 7785 000024514656 2065090 23,756.20 ARCGIS GEOMETRIC TO UTILITY 23,756.20 1/7/2026 22237 000000490226 2065035 8,924.60 FY26 JANITORIAL SERVICES 8,924.60 12/30/2025 20125 J2207 2065172 8,924.60 FY26 JANITORIAL SERVICES 8,924.60 1/21/2026 20125 J2235 METER CHANGEOUT AMI PROJECT 9,969.02 1/7/2026 586 1767686 METER CHANGEOUT AMI PROJECT 9,969.02 1/7/2026 586 1771541 METER CHANGEOUT AMI PROJECT 9,969.02 1/7/2026 586 1775115 BADGER METER INC 2065091 28,411.71 10/31/2025 11/20/2025 12/11/2025 AT&T 12/12/2025 AXIM GEOSPATIAL LLC 12/17/2025 AZTEC LANDSCAPING INC 11/30/2025 12/31/2025 AQUA-METRIC SALES COMPANY 12/26/2025 ARTIANO SHINOFF ABED 12/17/2025 ASSOCIATION OF CALIFORNIA WATER AGENCIES 9/30/2025 AMERIFLEX 2065170 310.10 1/8/2026 1/8/2026 ALBIREO ENERGY LLC 12/2/2025 AMERICAN BUSINESS BANK 12/8/2025 1/7/2026 AGRAMONT HOLDINGS LLC 12/29/2025 AIRGAS SPECIALTY PRODUCTS INC 2065032 5,014.90 12/2/2025 12/2/2025 12/2/2025 2065087 2,153.80 12/18/2025 12/18/2025 12/18/2025 AARC CONSULTANTS LLC 1/5/2026 ABLEFORCE INC 1/5/2026 ACC BUSINESS 12/11/2025 Check Register Check Dates: 12/18/2025 thru 1/21/2026 payee Invoice Date 24 HOUR ELEVATOR INC 12/1/2025 1/1/2026 1/27/2026 8:36:52 PM Page 1 Check Register Check Dates: 12/18/2025 thru 1/21/2026 MATERIALS FOR METER CHANGEOUT 607.70 1/14/2026 586 1775607 MATERIALS FOR METER CHANGEOUT 12,436.48 1/14/2026 586 1773131 MATERIALS FOR METER CHANGEOUT 2,484.00 1/21/2026 586 1773322 MATERIALS FOR METER CHANGEOUT 2,701.56 1/21/2026 586 1776945 MATERIALS FOR METER CHANGEOUT 4,160.40 1/21/2026 586 1778036 MATERIALS FOR METER CHANGEOUT 111,763.20 1/21/2026 586 1772950 2065132 322.50 NORTH PROCTOR VALLEY RD 322.50 1/14/2026 22273 3491 2065133 6,132.46 TREATMENT PLANT PUMP REBUILD 6,079.27 1/14/2026 4209 61782 2065174 5,042.48 MOTOR #2 AT 1050 HS REPLACEMENT 4,694.50 1/21/2026 4209 62755 AS-NEEDED SODIUM HYPOCHLORITE 663.44 12/30/2025 30350 BPI565664 AS-NEEDED SODIUM HYPOCHLORITE 974.42 12/30/2025 30350 BPI565663 AS-NEEDED SODIUM HYPOCHLORITE 1,966.61 12/30/2025 30350 BPI565662 AS-NEEDED SODIUM HYPOCHLORITE 296.18 1/7/2026 30350 BPI571132 AS-NEEDED SODIUM HYPOCHLORITE 305.06 1/7/2026 30350 BPI567511 AS-NEEDED SODIUM HYPOCHLORITE 438.34 1/7/2026 30350 BPI570470 AS-NEEDED SODIUM HYPOCHLORITE 444.26 1/7/2026 30350 BPI571130 AS-NEEDED SODIUM HYPOCHLORITE 481.58 1/7/2026 30350 BPI567509 AS-NEEDED SODIUM HYPOCHLORITE 491.65 1/7/2026 30350 BPI570473 AS-NEEDED SODIUM HYPOCHLORITE 562.73 1/7/2026 30350 BPI568849 AS-NEEDED SODIUM HYPOCHLORITE 586.43 1/7/2026 30350 BPI567510 AS-NEEDED SODIUM HYPOCHLORITE 666.40 1/7/2026 30350 BPI571131 AS-NEEDED SODIUM HYPOCHLORITE 737.48 1/7/2026 30350 BPI562437 AS-NEEDED SODIUM HYPOCHLORITE 829.29 1/7/2026 30350 BPI570471 AS-NEEDED SODIUM HYPOCHLORITE 900.38 1/7/2026 30350 BPI570474 AS-NEEDED SODIUM HYPOCHLORITE 1,199.51 1/7/2026 30350 BPI568848 AS-NEEDED SODIUM HYPOCHLORITE 1,421.64 1/7/2026 30350 BPI571129 AS-NEEDED SODIUM HYPOCHLORITE 1,623.04 1/7/2026 30350 BPI567196 AS-NEEDED SODIUM HYPOCHLORITE 1,673.39 1/7/2026 30350 BPI568847 AS-NEEDED SODIUM HYPOCHLORITE 1,880.72 1/7/2026 30350 BPI567195 AS-NEEDED SODIUM HYPOCHLORITE 2,028.81 1/7/2026 30350 BPI565665 AS-NEEDED SODIUM HYPOCHLORITE 2,470.11 1/7/2026 30350 BPI570472 AS-NEEDED SODIUM HYPOCHLORITE 2,576.73 1/7/2026 30350 BPI571702 AS-NEEDED SODIUM HYPOCHLORITE 2,932.14 1/7/2026 30350 BPI566291 AS-NEEDED SODIUM HYPOCHLORITE 2,961.76 1/7/2026 30350 BPI570469 12/18/2025 12/23/2025 12/4/2025 12/11/2025 12/4/2025 11/26/2025 12/23/2025 11/13/2025 12/18/2025 12/18/2025 12/11/2025 BRENNTAG PACIFIC INC 2065036 3,604.47 11/26/2025 11/26/2025 11/26/2025 2065092 31,458.62 12/23/2025 12/5/2025 12/18/2025 12/23/2025 12/4/2025 12/18/2025 12/11/2025 12/4/2025 12/18/2025 12/23/2025 12/1/2025 11/28/2025 BENDER ROSENTHAL INC 11/28/2025 BRAX COMPANY INC 11/12/2025 12/28/2025 2065131 13,402.88 12/15/2025 12/1/2025 2065173 124,439.65 12/2/2025 12/22/2025 12/30/2025 1/27/2026 8:36:52 PM Page 2 Check Register Check Dates: 12/18/2025 thru 1/21/2026 AS-NEEDED SODIUM HYPOCHLORITE 3,950.99 1/7/2026 30350 BPI570468 AS-NEEDED SODIUM HYPOCHLORITE 465.00 1/21/2026 30350 BPI573739 AS-NEEDED SODIUM HYPOCHLORITE 565.69 1/21/2026 30350 BPI573742 AS-NEEDED SODIUM HYPOCHLORITE 592.35 1/21/2026 30350 BPI572460 AS-NEEDED SODIUM HYPOCHLORITE 607.16 1/21/2026 30350 BPI572461 AS-NEEDED SODIUM HYPOCHLORITE 915.19 1/21/2026 30350 BPI573741 AS-NEEDED SODIUM HYPOCHLORITE 1,868.87 1/21/2026 30350 BPI572462 AS-NEEDED SODIUM HYPOCHLORITE 2,961.76 1/21/2026 30350 BPI573740 AS-NEEDED SODIUM HYPOCHLORITE 3,358.64 1/21/2026 30350 BPI573738 2065037 358.15 ARMORED TRANSPORTATION SERVICE 358.15 12/30/2025 21775 13078201 2065176 379.73 ARMORED TRANSPORTATION SERVICE 379.73 1/21/2026 21775 13098226 2065177 9,592.50 FY26 HR/LEGAL CONSULTING SERV 9,592.50 1/21/2026 3005 357469 UTILITY LOCATING - NOV 2025 22,770.00 1/21/2026 20374 CAL2491 UTILITY LOCATING - DEC 2025 22,915.00 1/21/2026 20374 CAL2457 2065156 7.57 UB REFUND 0000293110 7.57 1/14/2026 99999 ubRef011526003 RFWCWRF DISINFECTION SYSTEM 2,246.80 1/14/2026 15177 FB73856 RFWCWRF DISINFECTION SYSTEM 2,638.40 1/14/2026 15177 FB75605 2065135 58,408.44 EMERGENCY 12" REPAIR JAMUL 58,408.44 1/14/2026 848 P2944-00002 2065074 16.80 UB REFUND 0000263227 16.80 12/30/2025 99999 ubRef123125001 2065093 6,500.00 870-2 PS SWITCH GEAR MAINTENANCE 6,500.00 1/7/2026 6418 20521 2065094 4,323.57 WORK ORDER REFUND 4,323.57 1/7/2026 2026 d0026-090596 2065038 884.06 WATER DELIVERIES - OCT 2025 884.06 12/30/2025 234 1000437197 BACTERIOLOGICAL TESTING 250.00 12/30/2025 4119 43052 BACTERIOLOGICAL TESTING 250.00 12/30/2025 4119 43053 BACTERIOLOGICAL TESTING 820.00 12/30/2025 4119 43050 BACTERIOLOGICAL TESTING 930.00 12/30/2025 4119 43051 2065136 9,913.96 VALVE PREVENTATIVE MAINTENANCE 9,283.40 1/14/2026 2852 933796 2065095 13,833.20 COMMERCIAL DRIVER TRAINING 13,833.20 1/7/2026 17842 4050 2065179 25,051.88 INVENTORY 23,250.00 1/21/2026 18331 Y215224 2065137 540.75 FY26 DATA SERVICES - REALQUEST 540.75 1/14/2026 15049 82283117 SHUT DOWN TEST - NOV 2025 870.00 12/30/2025 184 2003193E609911 125 CORELOGIC SOLUTIONS LLC 12/31/2025 COUNTY OF SAN DIEGO 2065040 1,770.00 12/1/2025 CLA-VAL COMPANY 12/19/2025 COMMERCIAL TRANSPORTATION 12/14/2025 CORE & MAIN LP 12/26/2025 CHULA VISTA ELEM SCHOOL DIST 12/30/2025 CITY TREASURER - SAN DIEGO 12/2/2025 CLARKSON LAB & SUPPLY INC 2065039 2,250.00 11/30/2025 11/30/2025 11/30/2025 11/30/2025 CASS CONSTRUCTION INC 11/30/2025 CHELSEA GOULD 12/29/2025 CHULA VISTA ELECTRIC CO 12/19/2025 CARLOS GUTIERREZ 1/13/2026 CAROLLO ENGINEERS INC 2065134 4,885.20 11/4/2025 12/5/2025 CALBURTON INC 2065178 45,685.00 1/5/2026 12/5/2025 BRINKS INC 12/1/2025 1/1/2026 BURKE WILLIAMS & SORENSEN LLP 12/29/2025 12/18/2025 2065175 11,334.66 1/8/2026 1/8/2026 12/30/2025 12/30/2025 1/8/2026 12/30/2025 1/8/2026 1/8/2026 1/27/2026 8:36:52 PM Page 3 Check Register Check Dates: 12/18/2025 thru 1/21/2026 SHUT DOWN TEST - NOV 2025 900.00 12/30/2025 184 2003193E602131 125 2065041 14,113.00 PERMIT FEES - DEC 2025 14,113.00 12/30/2025 2122 092811995RI202 5 2065138 1,034.00 PERMIT FEES - DEC 2025 1,034.00 1/14/2026 2122 092811995Rl202 6 2065180 50.00 NOTICE OF EXEMPTION 50.00 1/21/2026 134 P2639NOE01152 5 SHUT DOWN TEST 300.00 1/21/2026 184 2003193E602161 225 SHUT DOWN TEST 300.00 1/21/2026 184 2003193E633051 225 SHUT DOWN TEST 300.00 1/21/2026 184 2003193E643021 225 SHUT DOWN TEST 300.00 1/21/2026 184 2003193E643171 225 SHUT DOWN TEST 300.00 1/21/2026 184 2003193E643181 225 SHUT DOWN TEST 450.00 1/21/2026 184 2003193E636721 225 SHUT DOWN TEST 870.00 1/21/2026 184 2003193E609911 225 SHUT DOWN TEST 900.00 1/21/2026 184 2003193E602131 225 SHUT DOWN TEST 2,400.00 1/21/2026 184 2003193E633771 225 2065046 42.48 BI-WEEKLY PAYROLL DEDUCTION 42.48 12/30/2025 22745 8218 2065182 23,287.50 COATING INSPECTION 23,287.50 1/21/2026 4443 17351 2065139 3,102.04 OFFICE FURNITURE 3,102.04 1/14/2026 18756 19705 2065096 349.99 TUITION REIMBURSEMENT 349.99 1/7/2026 7488 DN010526 2065183 4,530.00 AUDITING SERVICES FY25 FINANCE 4,530.00 1/21/2026 21128 4013 2065184 38,317.33 PROJECT MANAGEMENT SERVICES 38,317.33 1/21/2026 21597 25794 2065140 284.68 FY26 RECYCLED WASTE SERVICE 284.68 1/14/2026 2447 5458 123125 ELECTRICAL ENGINEERING 1,368.00 12/30/2025 3765 14120A26175 ELECTRICAL ENGINEERING 6,059.00 12/30/2025 3765 14120A46176 ELECTRICAL ENGINEERING 7,447.11 12/30/2025 3765 14120A76180 ELECTRICAL ENGINEERING 20,744.00 12/30/2025 3765 14120A16173 2065097 3,654.75 ENVIRONMENTAL SERVICES 3,654.75 1/7/2026 22412 214470ENVIRONMENTAL SCIENCE ASSOC 12/12/2025 E SOURCE COMPANIES LLC 12/31/2025 EDCO DISPOSAL CORPORATION 12/31/2025 ENGINEERING PARTNERS INC 2065042 35,618.11 11/30/2025 11/30/2025 11/30/2025 11/30/2025 CULTURA 1/13/2026 DAMON NEWMAN 1/5/2026 DAVIS FARR LLP 1/6/2026 1/1/2026 COURT ORDERED DEBT COLLECTIONS 12/31/2025 CSI SERVICES INC 10/7/2025 1/1/2026 1/1/2026 1/1/2026 1/1/2026 1/1/2026 12/1/2025 10/27/2025 1/8/2026 1/15/2026 2065181 6,120.00 1/1/2026 1/1/2026 1/1/2026 1/27/2026 8:36:52 PM Page 4 Check Register Check Dates: 12/18/2025 thru 1/21/2026 2065098 53,251.00 CLEAN & MAINT COVER/LINER 53,251.00 1/7/2026 22478 25159 2065075 18.31 UB REFUND 0000298816 18.31 12/30/2025 99999 ubRef123125004 2065099 1,409.80 CY26 VISION BENEFITS ADMIN 1,409.80 1/7/2026 20511 167131445 INVENTORY 2,640.00 12/30/2025 3546 0895399-1 INVENTORY 3,434.00 12/30/2025 3546 0896173 METER GASKETS 532.27 1/7/2026 3546 0892304-1 METER GASKETS 4,740.60 1/7/2026 3546 0895399-2 2065185 354.93 INVENTORY 329.40 1/21/2026 3546 0897873 2065044 99.00 DOCUMENT SERVICE FY 2026 99.00 12/30/2025 17888 9003401125 2065186 99.00 DOCUMENT SERVICE FY 2026 99.00 1/21/2026 17888 9003401225 2065045 150.00 FY26 GYM EQUIPMENT MAINTENANCE 150.00 12/30/2025 2591 13106 2065047 60.00 BI-WEEKLY PAYROLL DEDUCTION 60.00 12/30/2025 22973 8219 2065141 60.00 BI-WEEKLY PAYROLL DEDUCTION 60.00 1/14/2026 22973 8357 EXPENSE REIMBURSEMENT 124.60 1/7/2026 22628 120125123125 EXPENSE REIMBURSEMENT 188.52 1/7/2026 22628 120125123125 EXP AS-NEEDED FLEET WASH SERV 111.52 1/7/2026 30368 FC3445194 AS-NEEDED FLEET WASH SERV 131.80 1/7/2026 30368 FC3434685 2065142 334.56 AS-NEEDED FLEET WASH SERV 334.56 1/14/2026 30368 FC3422533 AS-NEEDED FLEET WASH SERV 152.07 1/21/2026 30368 FC3468622 AS-NEEDED FLEET WASH SERV 393.37 1/21/2026 30368 FC3456397 2065103 3,274.58 MICROSOFT 365 LICENSE 3,274.58 1/7/2026 30185 R1071SA-9 2065188 9,311.85 VACTOR TRUCK HYDRAULIC BLOCK 8,805.33 1/21/2026 2630 SO13607 2065048 200.02 AETNA EMPLOYEE ASSISTANCE PROG 200.02 12/30/2025 22165 E0358641 2065189 198.56 AETNA EMPLOYEE ASSISTANCE PROG 198.56 1/21/2026 22165 E0361188 2065143 1,076.06 SMA HABITAT MANAGEMENT 1,076.06 1/14/2026 2008 131699 2065190 23,331.78 ENVIRONMENTAL SERVICES 23,331.78 1/21/2026 2008 131566 WATER USAGE CALAVO SEWER LS 80.87 12/30/2025 62 43300121025 WATER USAGE CALAVO SEWER LS 89.44 12/30/2025 62 54283121025 2065191 2,300.00 870-1 RESERVOIR COVER/LINER 2,300.00 1/21/2026 21321 46027 2065050 3,010.00 GRANT WRITING (10/1/25-11/14/25)3,010.00 12/30/2025 20950 20250295 2065157 907.36 UB REFUND 0000306055 907.36 1/14/2026 99999 ubRef011526006 BILL PROCESSING SERVICES FY26 294.39 12/30/2025 8969 300482INFOSEND INC 2065051 20,034.00 12/5/2025 HILTS CONSULTING GROUP INC 1/5/2026 HOCH CONSULTING APC 12/8/2025 IMAGEFIRST HEALTHCARE 1/13/2026 HELIX ENVIRONMENTAL 12/15/2025 12/12/2025 HELIX WATER DISTRICT 2065049 170.31 12/10/2025 12/10/2025 GIGAKOM 1/5/2026 HAAKER EQUIPMENT COMPANY 12/10/2025 HEALTH AND HUMAN RESOURCE 12/2/2025 1/5/2026 FW FLEET CLEAN LLC 2065102 243.32 12/19/2025 12/12/2025 12/5/2025 2065187 545.44 1/2/2026 12/26/2025 FRANCHISE TAX BOARD 12/31/2025 1/15/2026 FRANCISCO RIVERA 2065101 313.12 12/31/2025 12/31/2025 FIRST AMERICAN DATA TREE LLC 11/30/2025 12/31/2025 FITNESS TECH 12/1/2025 EYEMED (FIDELITY)12/20/2025 FERGUSON WATERWORKS # 1083 2065043 6,544.74 12/2/2025 12/2/2025 2065100 5,681.52 12/13/2025 12/17/2025 12/23/2025 EROSION CONTROL 12/16/2025 EVELYN LESLIE 12/29/2025 1/27/2026 8:36:52 PM Page 5 Check Register Check Dates: 12/18/2025 thru 1/21/2026 BILL PROCESSING SERVICES FY26 2,248.01 12/30/2025 8969 299939 BILL PROCESSING SERVICES FY26 2,969.14 12/30/2025 8969 300479 BILL PROCESSING SERVICES FY26 14,393.04 12/30/2025 8969 299940 2065144 449.00 TUITION REIMBURSEMENT 449.00 1/14/2026 30508 IG122225 2065104 2,473.00 ANTENNA SUBLEASE 2,473.00 1/7/2026 20752 414677114 2065052 3,700.00 PERMENANT WATER EASEMENT 3,700.00 12/30/2025 30483 13930 2065105 366.81 RPDA REPAIR 7401 BRISTOW CT 366.81 1/7/2026 30504 D1236-090715 2065158 67.43 UB REFUND 0000299843 67.43 1/14/2026 99999 ubRef011526005 2065106 16.80 MILEAGE REIMBURSEMENT 16.80 1/7/2026 3019 120125123125 2065145 537.33 EXPENSE REIMBURSEMENT 537.33 1/14/2026 15599 011126 2065076 11.24 UB REFUND 0000283091 11.24 12/30/2025 99999 ubRef123125002 2065146 260.18 CUSTOMER REFUND 260.18 1/14/2026 30511 2414011326 2065107 17,174.48 OTAY CROSSING COMMERCE PARK 17,174.48 1/7/2026 20349 D0914-090272 AS-NEEDED ASPHALTIC PAVING SERV 1,284.36 12/30/2025 5840 25-119-5R AS-NEEDED ASPHALTIC PAVING SERV 8,139.27 12/30/2025 5840 25-119-7 RETENTION INVOICE 2,922.73 1/14/2026 5840 25-172-3R/4R RETENTION INVOICE 22,028.80 1/14/2026 5840 25-119-6 2065148 185.73 CUSTOMER REFUND 185.73 1/14/2026 30510 8823011326 GENERAL HEALTH & SAFETY 1,271.20 1/21/2026 21524 4027 GENERAL HEALTH & SAFETY 2,216.20 1/21/2026 21524 4026 2065077 2,029.25 UB REFUND 0000301452 2,029.25 12/30/2025 99999 ubRef123125005 2065055 67,324.08 TELEGRAPH CYN RD FH 70,867.45 12/30/2025 18905 103025 2065056 13,854.70 3/4" 3G REGISTERS 12,858.19 12/30/2025 5329 290156 2065057 945.00 ADMIN LANDSCAPE 945.00 12/30/2025 21723 11640 ADMIN LANDSCAPE 945.00 1/7/2026 21723 11649 ADMIN LANDSCAPE UPGRADE 101,480.00 1/7/2026 21723 123125 2065109 10,750.00 LANDSCAPE MAINTENANCE 10,750.00 1/7/2026 17261 10747 ENGINEERING DESIGN 337.50 12/30/2025 18332 476638 ENGINEERING DESIGN 8,475.00 12/30/2025 18332 488502 2065149 1,345.00 RSD/JAMUL PL REPLACEMENT 1,345.00 1/14/2026 18332 486829 IN-PLANT INSPECTION 16,243.00 12/30/2025 16834 11601 IN-PLANT INSPECTION 26,622.00 12/30/2025 16834 11602 ON-SITE TECHNICAL SVCS INC 2065059 42,865.00 12/3/2025 12/3/2025 NATURESCAPE SERVICES 12/31/2025 NV5 INC 2065058 8,812.50 11/26/2025 12/9/2025 12/2/2025 MERINO LANDSCAPE INC 11/30/2025 2065108 97,351.00 12/31/2025 12/31/2025 LUSARDI CONSTRUCTION 12/29/2025 M RAE ENGINEERING INC 10/30/2025 MASTER METER INC 12/5/2025 LAWYERS TITLE COMPANY 1/13/2026 LINDSAY POLIC CONSULTING INC 2065192 3,487.40 12/30/2025 12/2/2025 KEARNY PCCP OTAY 311 LLC 12/30/2025 KIRK PAVING INC 2065054 9,016.68 10/27/2025 12/9/2025 2065147 23,850.08 11/6/2025 11/4/2025 JOSE MARTINEZ 1/11/2026 JOSE RAMOS 12/29/2025 JOSHUA SANIEL 1/13/2026 JOHNSON PROPERTIES LLC 12/30/2025 JONATHAN GOMEZ 1/13/2026 JOSE LOPEZ 12/31/2025 ISAI GARCIA 12/22/2025 IWG TOWERS ASSETS II LLC 1/1/2026 JAMES MURPHY 12/11/2025 11/30/2025 12/5/2025 11/30/2025 1/27/2026 8:36:52 PM Page 6 Check Register Check Dates: 12/18/2025 thru 1/21/2026 IN-PLANT INSPECTION 1,343.00 1/21/2026 16834 11619 IN-PLANT INSPECTION 18,557.60 1/21/2026 16834 11620 IN-PLANT INSPECTION 18,682.00 1/21/2026 16834 11621 2065194 381.41 REIMBURSEMENT FOR CREDIT CARD 381.41 1/21/2026 3101 OWDEA 011526 2065110 6,151.22 OTAY HEIGHTS LOT 3 6,151.22 1/7/2026 21547 D1133-090668 2065060 876,831.40 870-2 RES 3.4 MG & 8701 RES 876,831.40 12/30/2025 6646 1211302025 INVENTORY 1,996.50 1/7/2026 1002 S100483489.001 INVENTORY 3,971.90 1/7/2026 1002 S100483489.002 2065195 154.73 INVENTORY 154.73 1/21/2026 1002 S100483489.001 - tax 2065061 1,525.61 PETTY CASH REIMBURSEMENT 1,525.61 12/30/2025 137 121825 2065062 4,601.25 AS NEEDED ASSET MANAGEMENT 4,601.25 12/30/2025 20861 42990 2065112 893.75 AS NEEDED ASSET MANAGEMENT 893.75 1/7/2026 20861 43205 RANDOM DRUG TESTING 110.00 12/30/2025 22238 12858 RANDOM DRUG TESTING 875.00 12/30/2025 22238 12782 2065064 624.71 FY26 AS-NEEDED SAFETY BOOTS 624.71 12/30/2025 19836 20251210069504 2065159 30.98 UB REFUND 0000283528 30.98 1/14/2026 99999 ubRef011526002 2065078 1,462.80 UB REFUND 0000292855 1,462.80 12/30/2025 99999 ubRef123125003 2065160 150.00 UB REFUND 0000189120 150.00 1/14/2026 99999 ubRef011526001 2065113 3,425.60 AS-NEEDED TEMP STAFF 3,425.60 1/7/2026 30396 16347945 2065196 3,425.60 AS-NEEDED TEMP STAFF 3,425.60 1/21/2026 30396 16352321 2065114 9,110.25 INVEST ADVISOR FOR DEF COMP 9,110.25 1/7/2026 19377 2026-10011 2065115 125.00 FY26 MONTHLY ASSESSOR DATA 125.00 1/7/2026 2586 202600023 SOCAL WATERSMART HEW HET WBIC 448.00 1/7/2026 3 3000 SOCAL WATERSMART HEW HET WBIC 560.00 1/7/2026 3 2985 UTILITY EXPENSES - MONTHLY 934.86 1/7/2026 121 122625 UTILITY EXPENSES - MONTHLY 1,460.98 1/7/2026 121 123125A UTILITY EXPENSES - MONTHLY 38,305.13 1/7/2026 121 123125 UTILITY EXPENSES - MONTHLY 49,642.09 1/7/2026 121 123025 SAN DIEGO GAS & ELECTRIC 2065117 145,923.18 12/26/2025 12/31/2025 12/31/2025 12/30/2025 SAGEVIEW ADVISORY GROUP LLC 1/1/2026 SAN DIEGO COUNTY ASSESSOR 1/5/2026 SAN DIEGO COUNTY WATER AUTH 2065116 1,008.00 12/22/2025 11/18/2025 ROSALIE CHASES 1/13/2026 ROTH STAFFING COMPANIES LP 12/12/2025 12/26/2025 RED WING BUSINESS ADV ACCOUNT 12/10/2025 ROCHELLE SALAS 1/13/2026 ROD DOSSEY 12/29/2025 RCDA LLC 2065063 985.00 12/8/2025 12/1/2025 PETTY CASH CUSTODIAN 12/18/2025 RAFTELIS 11/17/2025 12/15/2025 PACIFIC PIPELINE SUPPLY INC 2065111 6,276.22 12/16/2025 12/19/2025 12/16/2025 OTAY WATER DISTRICT EMPLOYEES ASSOC 1/15/2026 OVL INVESTMENTS LP 12/30/2025 PACIFIC HYDROTECH CORPORATION 12/8/2025 2065193 38,582.60 1/7/2026 1/7/2026 1/7/2026 1/27/2026 8:36:52 PM Page 7 Check Register Check Dates: 12/18/2025 thru 1/21/2026 UTILITY EXPENSES - MONTHLY 55,580.12 1/7/2026 121 122225 UTILITY EXPENSES - MONTHLY 43.35 1/21/2026 121 011226 UTILITY EXPENSES - MONTHLY 25,628.51 1/21/2026 121 010726 UTILITY EXPENSES - MONTHLY 31,713.97 1/21/2026 121 010526 UTILITY EXPENSES - MONTHLY 122,874.93 1/21/2026 121 010626 2065118 1,956.29 SINGING HILLS WATER & FIRE SERV 1,956.29 1/7/2026 30505 D1174-090624 2065119 475.00 ON-DEMAND SECURITY RESPONSE 475.00 1/7/2026 19603 12420185 2065150 4,805.41 PARTS FOR COTTONWOOD LIFT STA 4,474.00 1/14/2026 21556 5720842 2065198 41.60 PARTS FOR COTTONWOOD LIFT STA 40.12 1/21/2026 21556 5720732 2065120 6,122.00 EMPLOYEE HEALTH EXAMS 6,122.00 1/7/2026 1651 104897 MILLENIA ONSITE 2 L&I 29.43 12/30/2025 20729 D0943-090612 MILLENIA ONSITE 2 L&I 85.49 12/30/2025 20729 D0943-060165 MILLENIA ONSITE 2 L&I 102.80 12/30/2025 20729 D0876-060105 MILLENIA ONSITE 2 L&I 481.39 12/30/2025 20729 D0943-060162 MILLENIA ONSITE 2 L&I 10,317.32 12/30/2025 20729 D0943-060164 2065067 3,463.62 ONE KIT OF COOLBLUE FOR 980/64 3,214.50 12/30/2025 258 74834 2065068 553.85 BI-WEEKLY PAYROLL DEDUCTION 553.85 12/30/2025 21115 8216 2065151 553.85 BI-WEEKLY PAYROLL DEDUCTION 553.85 1/14/2026 21115 8355 2065152 7,000.00 CY2025 APEX ACCELERATOR SPONSOR 7,000.00 1/14/2026 2594 OWD2025 2065153 60.00 CERTIFICATION RENEWAL 60.00 1/14/2026 1460 29905AH030126 2065154 167,065.92 STATE WATER SYS ANNUAL FEE 167,065.92 1/14/2026 1460 WS-1055003 2065069 3,307.50 TRAFFIC ENGINEERING 3,307.50 12/30/2025 20411 8562 2065199 11,626.87 CY2025 LIFE & STD/LTD INSURANCE 11,626.87 1/21/2026 15974 38166 120125 2065070 1,000.00 AS-NEEDED COMM CONSULT 1,000.00 12/30/2025 18376 1849 2065200 400.00 AS-NEEDED COMM CONSULT 400.00 1/21/2026 18376 1857 2065121 390.00 2026, UNMANNED AIRCRAFT SYSTEM 390.00 1/7/2026 21394 OTAY 22 2065071 1,370.00 FIRE SPRINKLER INSPECTION 1,370.00 12/30/2025 22498 727830 2065201 782.86 FIRE SPRINKLER INSPECTION 782.86 1/21/2026 22498 739136 2065065 19,477.00 COTA VERA LOTS 9 & 15 19,477.00 12/30/2025 30487 D1089-090467 2065155 166.03 CUSTOMER REFUND 166.03 1/14/2026 30509 0238011326 2065161 67.41 UB REFUND 0000293501 67.41 1/14/2026 99999 ubRef011526004 2065072 5,180.44 2IN WET TAP 7622 PASEO 5,180.44 12/30/2025 22042 D1211-090675TOROCO TRUCKING LLC 11/26/2025 THE RESIDENCE AT COTA VERA 11/26/2025 TICOR TITLE COMPANY OF CA 1/13/2026 TIMOTHY MAXWELL 1/13/2026 TEEDEEUAS LLC 1/3/2026 THE HILLER COMPANIES 12/5/2025 12/31/2025 STC TRAFFIC INC 11/28/2025 SUN LIFE FINANCIAL 12/1/2025 SVPR COMMUNICATIONS LLC 11/30/2025 12/31/2025 SOUTHWESTERN COLLEGE, FOUNDATION 3/25/2025 STATE WATER RESOURCES 12/22/2025 12/3/2025 SLOAN ELECTRIC COMPANY 12/3/2025 SONIA PONCE 12/31/2025 1/15/2026 SHARP REES-STEALY MEDICAL CTRS 12/18/2025 SLF IV - MILLENIA LLC 2065066 11,016.43 11/25/2025 11/26/2025 11/25/2025 11/26/2025 11/26/2025 SDFC TRAINING LLC 12/30/2025 SECURITAS SECURITY SVC USA INC 1/1/2026 SEMITORR GROUP INC 12/18/2025 12/17/2025 12/22/2025 2065197 180,260.76 1/12/2026 1/7/2026 1/5/2026 1/6/2026 1/27/2026 8:36:52 PM Page 8 Check Register Check Dates: 12/18/2025 thru 1/21/2026 2065122 89,964.05 RTU-7 AND RTU-8 REPLACEMENT 89,964.05 1/7/2026 2641 315839039 2065123 6,450.00 ATS TESTING SERVICE 6,450.00 1/7/2026 21737 2285 MUNIS ERP UPGRADE IMPLEMENT 800.00 1/7/2026 3261 045-547551 MUNIS ERP UPGRADE IMPLEMENT 1,701.99 1/7/2026 3261 045-547197 MUNIS ERP UPGRADE IMPLEMENT 4,463.73 1/7/2026 3261 045-547193 2065125 3,100.00 ADM FEES 2019 WW REV BOND 3,100.00 1/7/2026 20891 8017577 DIGALERT CALIFORNIA MEMBER 300.68 12/30/2025 427 25261805 DIGALERT CALIFORNIA MEMBER 576.00 12/30/2025 427 1120250518 DIGALERT CALIFORNIA MEMBER 300.68 1/21/2026 427 25262179 DIGALERT CALIFORNIA MEMBER 658.00 1/21/2026 427 1220250522 PORT TOILET RENTAL 164.00 1/14/2026 15675 5839192 PORT TOILET RENTAL 800.00 1/14/2026 15675 5838628 2065126 5,459.95 4" SEWER TAP SYCUAN SINGING HILLS 5,459.95 1/7/2026 30506 D1174-090679 CMIS - NOV 2025 2,380.00 12/30/2025 8028 OWD1485TC11 CMIS - NOV 2025 2,720.00 12/30/2025 8028 SD545826 CMIS - NOV 2025 7,140.00 12/30/2025 8028 OWD711PS01 CMIS - NOV 2025 31,495.00 12/30/2025 8028 SD24030515 2065127 596.40 FY26 WATER INTERNS 596.40 1/7/2026 20909 47169708 2065163 596.40 FY26 WATER INTERNS 596.40 1/14/2026 20909 47099559 DECOMPOSED GRANITE 249.72 1/14/2026 16114 5292244 DECOMPOSED GRANITE 4,363.96 1/14/2026 16114 5268837 2065081 1,236.00 HYDRAULIC MODELING 1,236.00 12/30/2025 15726 11868 2065128 140.00 BEE REMOVAL SERV 140.00 1/7/2026 1343 91971 2065082 3,832.80 PLAN CHECK (10/4/25-11/7/25) 3,832.80 12/30/2025 21997 2065251 2065203 11,077.65 PLAN CHECK (11/8/25-12/5/25) 11,077.65 1/21/2026 21997 2065418 2065083 2,250.00 ADMIN LANDSCAPE DESIGN REFRESH 2,250.00 12/30/2025 20611 001692 ENGINEERING DESIGN 320.00 1/14/2026 19866 199068 ENGINEERING DESIGN 1,012.50 1/14/2026 19866 199095 ENGINEERING DESIGN 1,764.00 1/14/2026 19866 199082 2065166 70,268.75 WFMP/PEIR/UWMP/IWRP UPDATES 70,268.75 1/14/2026 30207 257251 2065084 11,378.35 JAMUL TRACTOR SUPPLY STORE 11,378.35 12/30/2025 21006 D1061-090407 2065129 11,622.79 NITRATE SENSOR PROBE ELECTRODE 10,816.59 1/7/2026 14857 1181719 Total 3,162,825.53 WOODARD & CURRAN 12/9/2025 WOODCREST REAL ESTATE VENTURES 11/26/2025 XYLEM/YSI INCORPORATED 12/15/2025 WIMMER YAMADA AND CAUGHEY 11/30/2025 WOOD RODGERS INC 2065165 3,096.50 11/30/2025 11/30/2025 11/30/2025 WATER SYSTEMS CONSULTING INC 11/30/2025 WE GOT YA PEST CONTROL INC 12/12/2025 WEST YOST & ASSOCIATES INC 10/31/2025 11/30/2025 VOLT WORKFORCE SOLUTIONS 12/14/2025 9/28/2025 VULCAN MATERIALS COMPANY 2065164 4,613.68 12/17/2025 12/15/2025 USA IN TRUST FOR SYCUAN BAND 12/30/2025 VALLEY CONSTRUCTION MANAGEMENT 2065080 43,735.00 12/3/2025 12/3/2025 12/3/2025 12/3/2025 UNITED SITE SERVICES INC 2065162 983.77 1/6/2026 1/6/2026 U.S. BANK NATIONAL ASSOCIATION 12/24/2025 UNDERGROUND SERVICE ALERT 2065079 876.68 12/1/2025 12/1/2025 2065202 958.68 1/1/2026 1/1/2026 TYLER TECHNOLOGIES INC 2065124 6,965.72 12/10/2025 12/12/2025 12/12/2025 TRANE US INC 12/22/2025 TRINITY ALTERNATIVE POWER 12/10/2025 1/27/2026 8:36:52 PM Page 9