HomeMy WebLinkAbout07-18-18 F&A Committee Packet 1
OTAY WATER DISTRICT
FINANCE AND ADMINISTRATION
COMMITTEE MEETING
and
SPECIAL MEETING OF THE BOARD OF DIRECTORS
2554 SWEETWATER SPRINGS BOULEVARD
SPRING VALLEY, CALIFORNIA
BOARDROOM
WEDNESDAY
July 18, 2018
12:00 P.M.
This is a District Committee meeting. This meeting is being posted as a special meeting
in order to comply with the Brown Act (Government Code Section §54954.2) in the event that
a quorum of the Board is present. Items will be deliberated, however, no formal board actions
will be taken at this meeting. The committee makes recommendations
to the full board for its consideration and formal action.
AGENDA
1. ROLL CALL
2. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO
SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JU-
RISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA
DISCUSSION ITEMS
3. CONSIDER THE AMENDED AND RESTATED REGIONAL WASTEWATER
AGREEMENT BETWEEN THE CITY OF SAN DIEGO (CITY) AND PARTICIPATING
AGENCIES (PA) IN THE METROPOLITAN SEWERAGE SYSTEM (AGREEMENT)
AS PART OF A LONG-RANGE REGIONAL WATER REUSE PLAN WITH THE GOAL
OF REALIZING A SECONDARY EQUIVALENT POINT LOMA WASTEWATER
TREATMENT PLANT (PLWTP) AND A NEW LOCAL SUSTAINABLE WATER
SUPPLY (KENNEDY) [5 minutes]
4. ADJOURNMENT
BOARD MEMBERS ATTENDING:
Mark Robak, Chair
Mitch Thompson
2
All items appearing on this agenda, whether or not expressly listed for action, may be delib-
erated and may be subject to action by the Board.
The Agenda, and any attachments containing written information, are available at the Dis-
trict’s website at www.otaywater.gov. Written changes to any items to be considered at the
open meeting, or to any attachments, will be posted on the District’s website. Copies of the
Agenda and all attachments are also available through the District Secretary by contacting
her at (619) 670-2280.
If you have any disability which would require accommodation in order to enable you to par-
ticipate in this meeting, please call the District Secretary at 670-2280 at least 24 hours prior
to the meeting.
Certification of Posting
I certify that on July 13, 2018 I posted a copy of the foregoing agenda near the regular
meeting place of the Board of Directors of Otay Water District, said time being at least 24
hours in advance of the meeting of the Board of Directors (Government Code Section
§54954.2).
Executed at Spring Valley, California on July 13, 2018.
/s/ Susan Cruz, District Secretary
STAFF REPORT
TYPE MEETING: Regular Board
MEETING DATE: August 1, 2018
SUBMITTED BY:
Bob Kennedy
Engineering Manager
PROJECT: S1502-
001000
DIV. NO. All
APPROVED BY:
Rod Posada, Chief, Engineering
Mark Watton, General Manager
SUBJECT: Amended and Restated Regional Wastewater Agreement Between the
City of San Diego and Participating Agencies in the
Metropolitan Sewerage System
GENERAL MANAGER’S RECOMMENDATION:
Consider the Amended and Restated Regional Wastewater Agreement
between the City of San Diego (City) and the Participating Agencies
(PA) in the Metropolitan Sewerage System (Agreement) as part of a
long-range regional water reuse plan with the goal of realizing a
secondary equivalent Point Loma Wastewater Treatment Plant (PLWTP)
and a new local sustainable water supply. Staff are unable to
provide a recommendation unless more information is provided to
better understand and negotiate terms into the Agreement and to
understand how it will be implemented by the City.
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
On October 1, 2014, the Board approved a resolution in support of the
City’s National Pollution Discharge Elimination System (NPDES) permit
as part of a long-range regional water reuse plan with the goal of
realizing a secondary equivalent PLWTP. The Pure Water San Diego
Program (Pure Water), as a new local sustainable water supply, could
also avoid or downsize future imported water projects. In order to
comprehensively and equitably address the costs and revenues
2
associated with the Pure Water project and the related construction,
expansion, and modification of the Metro wastewater facilities, the
City and the PAs wish to amend and restate the Regional Wastewater
Disposal Agreement.
ANALYSIS:
The Metropolitan Wastewater Joint Powers Authority (JPA) is a
coalition of municipalities and special districts in the southern and
central portions of San Diego County that share in the use of the
City's regional wastewater collection and treatment facilities. Otay
Water District is one of twelve (12) PAs party to agreements with the
City for wastewater treatment. This coalition of PAs represents 35%
of the flow and over $70 million of the annual budget in relation to
the Metro wastewater system. Other JPA member agencies include the
cities of Chula Vista, Coronado, Del Mar, El Cajon, Imperial Beach,
La Mesa, National City, Poway, the County of San Diego Sanitation
District, the Lemon Grove Sanitation District, and Padre Dam
Municipal Water District. Otay Water District contributes
approximately 0.5% of the wastewater flow to the Metro wastewater
system.
The City’s sewage system dates back to 1885, but a formal agreement
between the PAs was not established until 1998. The Metropolitan
Wastewater Commission (Metro Commission) was formed at that time
pursuant to the terms of the first Regional Wastewater Disposal
Agreement between PAs and San Diego.
In 2001, the Metro Joint Powers Authority (Metro JPA) was formed to
provide the PAs with a stronger voice in the operations of the Metro
System, for which the PAs collectively pay approximately 35% of the
operation and capital costs.
Secondary Equivalency
Members of the JPA believe that permanent acceptance of a smaller
PLWTP as an advanced primary treatment plant can be achieved through
development of a comprehensive, systematic regional water reuse plan
to implement a variety of agency-specific and collaborative large-
scale potable water reuse projects. These include indirect potable
reuse (IPR) projects that could result in significant off-loading of
the treatment demand on the PLWTP.
The City’s PLWTP is currently permitted to treat 240-million gallons
of wastewater per day (MGD) and allows treatment to an advanced
primary level, but must obtain a waiver every five (5) years from the
United States Environmental Protection Agency issued pursuant to the
3
Clean Water Act. The City has more than 20 years of ocean monitoring
data demonstrating that the advanced primary PLWTP consistently
protects the ocean. The City has estimated the cost of upgrading the
PLWTP from advanced primary to Full Secondary Treatment Level to $3.5
billion. This high cost of the upgrade, combined with the projected
high costs for creating a reliable potable water supply, has led the
City to the conclusion that it is possible to divert flow from PLWTP
and to treat a portion of this diverted flow to a level suitable for
IPR and maintain PLWTP at Advanced Primary without impacting the
ocean environment. The first phase of the Pure Water project is
expected to produce 30 MGD of product water to be conveyed to Miramar
reservoir.
The ultimate goal of the Recycled Water Study outlines a concept to
divert almost 100 MGD of wastewater that would otherwise have been
treated. If this goal can be achieved, the lower flow to the PLWTP
could preclude the need for upgrading to a Full Secondary Level, and
use the diverted flow to offset the region’s future potable water
import needs. To achieve any offloading of flow to PLWTP, a fail-
safe design with full redundant infrastructure and a commitment by
the City that the Pure Water infrastructure must operate
continuously.
To continue to operate the PLWTP at the advanced primary treatment
level, the City is seeking passage of federal legislation, with
support from the environmental community, the proposal called Ocean
Pollution Reduction Act II (OPRA II). OPRA II will allow the City’s
NPDES permit to be based on secondary equivalency with a commitment
to implement potable reuse of wastewater. Until permanent federal
legislation is adopted, to recognize secondary equivalence, there is
uncertainty about the total financial cost strategy for wastewater
associated with the Pure Water project.
Pure Water Phase I cost projection dated March 2018 estimated the
total cost are $1.4 billion. Metro Wastewater allocation is thirty
nine percent (39%) of the overall estimated cost and City Water
allocation is sixty one percent (61%). See Attachment B for the cost
breakdown for this project.
Amended and Restated Regional Wastewater Agreement
On May 15, 2018, staff received a draft of the Agreement, however, it
was incomplete with many of the exhibits missing and dollar values
left blank. On May 17, 2018, District staff discussed the elements
of the agreement with the ad hoc group for Metro Technical Advisory
Committee’s (Metro TAC) working on the agreement. On June 22, 2018,
staff received the latest version of the Agreement (see Exhibit A)
4
and also an explanation of some of the basic principles that are now
incorporated into the agreement (see Exhibit B).
Staff from the City’s Public Utilities Department and the City
Attorney’s Office are continuing to work with Metro JPA staff on the
Agreement and have come to conceptual agreement on most terms,
however, the individual agencies that make up Metro JPA are waiting
to receive more complete information on the Agreement.
The District provided comments on the draft version of the Agreement
to Metro JPA’s General Counsel, Best Best & Krieger LLP (BB&K). BB&K
is planning to provide a joint meeting or conference call with all
agencies to discuss the Agreement and provide an update on the
revisions being negotiated. District’s staff has suggested
clarification on what expenses will be included in a cap on the
maximum capital Metro should contribute to the Pure Water project to
assure the capital and operating costs don’t exceed the estimated
cost for improvements at PLWTP to meet secondary treatment standards.
Staff are also concerned about how the Pure Water project is
designed. It must be built with the redundant equipment and operated
as a “must-run” facility to offload flows permanently to PLWTP. On
November 21, 2017, the Metro JPA provided comments on the City’s
EIR/EIS (see Exhibit C) noting the City’s own environmental document
states, “The NCPWF is not an essential facility.” On February 28,
2018, the Metro JPA provided comments on the draft Title 22 Engineers
Report noting the project, as designed, would not benefit Metro JPA
if the project doesn’t off-load PLWTP (see Exhibit D). This basic
design and operating principle has not been resolved between the City
and Metro JPA and the Agreement doesn’t address this adequately.
Metro JPA Chairman prepared talking points (see Exhibit E) for a
meeting between Board of Supervisor Greg Cox and Mayor Kevin L.
Faulconer in May 2018. The chairman included his concerns about the
aggressive timeline to bid construction contracts and noted that a
secured agreement with the City may be difficult, if not impossible.
He noted that mitigation of future costs is necessary, in the event
secondary equivalency cannot be secured. He also noted that the
North County wastewater agencies that include the San Elijo Joint
Powers Authority, the Leucadia Wastewater District, and the Encina
Wastewater Authority are currently paying less for full secondary
treatment even before the Pure Water costs are added.
At the last June 20, 2018 Metro TAC meeting, an updated Agreement is
scheduled to be provided to the member agencies before their next
meeting on July 19, 2018. The City is planning to request
authorization for advertisement for construction of the first phase
of the Pure Water project at the City’s September 2018 Environment
5
Committee meeting and the October 2018 City Council meeting. Current
indications are that the City will request, at the Metro Commission
meeting of August 2, 2018, the Commission’s approval or support of
the Agreement.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
Unknown at this time.
STRATEGIC GOAL:
This Resolution supports the District’s Mission statement, “To
provide high value water and wastewater services to the customers of
the Otay Water District in a professional, effective, and efficient
manner” and the General Manager’s Vision, “A District that is
innovative in providing water services at affordable rates, with a
reputation for outstanding customer service.”
LEGAL IMPACT:
Unknown at this time.
BK/RP:jf
P:\WORKING\CIP S1502 - City of San Diego Metro Water Issues\Staff Reports\Bd 08-01-18, Staff Report
Metro JPA Restated Wastewater Agreement\BD 08-01-18, Staff Report, Metro JPA-Restated Wastewater
Agreement, (BK-RP).docx
Attachments: Attachment A – Committee Action
Attachment B – Pure Water Phase I Cost Estimate
Exhibit A – Draft Amended and Restated Regional
Wastewater Agreement
Exhibit B – Agreement Basic Principles
Exhibit C – Metro Comments on Draft EIR/EIS
Exhibit D – Metro Comments Title 22 Engineers Report
Exhibit E – Metro JPA Chairman Meeting Talking Points
ATTACHMENT A
SUBJECT/PROJECT:
S1502-001000
Amended and Restated Regional Wastewater Agreement Between
the City of San Diego and Participating Agencies in the
Metropolitan Sewerage System
COMMITTEE ACTION:
The Finance and Administration Committee (Committee) reviewed this
item at a meeting held on July 18, 2018. The Committee supported
staff's recommendation.
NOTE:
The “Committee Action” is written in anticipation of the Committee
moving the item forward for Board approval. This report will be sent
to the Board as a Committee approved item, or modified to reflect any
discussion or changes as directed from the Committee prior to
presentation to the full Board.
Attachment B
Pure Water Phase I Cost Estimate
March 2018
FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 Total Percent
Wastewater:
Morena PS & WW Force Main and Brine Conveyance 154,897$ 1,647,288$ 3,280,849$ 12,724,831$ 28,566,500$ 143,849,533$ 131,358,206$ 3,130,181$ 324,712,285$
North City Renewable Energy 49,669$ 644,998$ 692,614$ 701,367$ 1,295,182$ 6,174,097$ 20,680,418$ 3,556,439$ 33,794,784$
North City MBC Improvements 2,673$ 54,797$ 753,144$ 1,289,608$ 3,466,999$ 1,545,572$ 198,042$ 7,310,835$
North City WRP Expansion and PWF Influent Conveyance 268,778$ 2,349,630$ 3,482,119$ 9,960,999$ 29,070,517$ 76,220,181$ 45,525,116$ 10,005,502$ 176,882,842$
SDG&E 1,062,998$ 1,095,970$ 1,129,964$ 3,288,932$
Total Wastewater 473,344$ 4,644,589$ 7,510,379$ 24,140,341$ 61,284,805$ 230,806,780$ 200,239,276$ 16,890,164$ 545,989,678$ 39%
Water:
MorenaPump Station WW Force Main and Brine Conveyance 43,689$ 463,495$ 1,018,609$ 1,488,282$ 5,103,717$ 18,668,104$ 19,171,954$ 547,108$ 46,504,958$
North City Renewable Energy 142,073$ 1,844,930$ 1,854,764$ 5,623,764$ 14,444,516$ 57,630,529$ 12,479,552$ 94,020,128$
Miramar WTP Pump and Plant Improvements 402,526$ 404,390$ 1,651,678$ 2,097,217$ 4,555,811$
North City Pure Water Facility 356,066$ 3,499,605$ 5,366,161$ 30,237,545$ 69,296,681$ 221,267,199$ 153,848,727$ 37,780,301$ 521,652,285$
North City WRP Expansion and PWF Influent Conveyance 211,700$ 2,407,733$ 412,267$ 2,002,336$ 2,691,337$ 28,016,829$ 8,140,260$ 1,354,497$ 45,236,959$
North City Pure Water Pipeline 427,642$ 701,334$ 4,962,149$ 6,632,030$ 24,796,516$ 46,386,566$ 23,768,685$ 1,737,030$ 109,411,952$
North City Pure Water Pump Station 11,984$ 371,482$ 2,290,465$ 1,142,275$ 4,270,856$ 7,989,442$ 4,093,826$ 299,179$ 20,469,509$
Total Water 1,051,081$ 7,585,722$ 15,894,581$ 43,759,758$ 112,187,261$ 338,424,334$ 268,751,198$ 54,197,667$ 841,851,602$ 61%
Total Project 1,524,425$ 12,230,311$ 23,404,960$ 67,900,099$ 173,472,066$ 569,231,114$ 468,990,474$ 71,087,831$ 1,387,841,280$
Shared Projects:
Morena PS & WW Force Main and Brine Conveyance
Wastewater 154,897$ 1,647,288$ 3,280,849$ 12,724,831$ 28,566,500$ 143,849,533$ 131,358,206$ 3,130,181$ 324,712,285$ 87%
Water 43,689$ 463,495$ 1,018,609$ 1,488,282$ 5,103,717$ 18,668,104$ 19,171,954$ 547,108$ 46,504,958$ 13%
198,586$ 2,110,783$ 4,299,458$ 14,213,113$ 33,670,217$ 162,517,637$ 150,530,160$ 3,677,289$ 371,217,243$
North City Renewable Energy
Wastewater 49,669$ 644,998$ 692,614$ 701,367$ 1,295,182$ 6,174,097$ 20,680,418$ 3,556,439$ 33,794,784$ 26%
Water -$ 142,073$ 1,844,930$ 1,854,764$ 5,623,764$ 14,444,516$ 57,630,529$ 12,479,552$ 94,020,128$ 74%
49,669$ 787,071$ 2,537,544$ 2,556,131$ 6,918,946$ 20,618,613$ 78,310,947$ 16,035,991$ 127,814,912$
North City WRP Expansion and PWF Influent Conveyance
Wastewater 268,778$ 2,349,630$ 3,482,119$ 9,960,999$ 29,070,517$ 76,220,181$ 45,525,116$ 10,005,502$ 176,882,842$ 80%
Water 211,700$ 2,407,733$ 412,267$ 2,002,336$ 2,691,337$ 28,016,829$ 8,140,260$ 1,354,497$ 45,236,959$ 20%
480,478$ 4,757,363$ 3,894,386$ 11,963,335$ 31,761,854$ 104,237,010$ 53,665,376$ 11,359,999$ 222,119,801$
Exhibit A
DRAFT – City of SD Comments 6/6/18
60409.00001\30914102.3
60409.00001\30914102.4
AMENDED AND RESTATED
REGIONAL WASTEWATER DISPOSAL AGREEMENT
BETWEEN
THE CITY OF SAN DIEGO
AND
THE PARTICIPATING AGENCIES
IN
THE METROPOLITAN SEWERAGE SYSTEM
60409.00001\30914102.3
60409.00001\30914102.4
-i-
AMENDED AND RESTATED
REGIONAL WASTEWATER DISPOSAL AGREEMENT
TABLE OF CONTENTS
Page
I. DEFINITIONS ................................................................................................................... 2
II. OWNERSHIP AND OPERATION OF THE METRO SYSTEM .................................... 4
III. PAYMENT AND MONITORING PROVISIONS ........................................................... 8
IV. CAPACITY RIGHTS ........................................................................................................ 9
V. SYSTEM OF CHARGES ................................................................................................ 10
VI. PLANNING ..................................................................................................................... 14
VII. FACILITIES SOLELY FOR NEW CONTRACT CAPACITY ..................................... 14
VIII. THE METRO COMMISSION ........................................................................................ 16
IX. DISPUTE RESOLUTION ............................................................................................... 17
X. INSURANCE AND INDEMNITY ................................................................................. 18
XI. INTERRUPTION OF SERVICE ..................................................................................... 19
XII. NOTICES REQUIRED UNDER AGREEMENT ........................................................... 19
XIII. EFFECTIVE DATE AND TERMINATION .................................................................. 19
XIV. GENERAL ....................................................................................................................... 20
Exhibits
A. Metro Facilities
B. Contract Capacities
C. Allocation of Operating Reserves and Debt Service Coverage to Participating Agencies
D. Notice Listing
E. Reclaimed Water Distribution System
F. Pure Water Cost Allocation and Commodity Rate
G. Metro System Capacity Pool Allocation
60409.00001\30914102.3 -1-
60409.00001\30914102.4
AMENDED AND RESTATED REGIONAL WASTEWATER DISPOSAL AGREEMENT
THIS AMENDED AND RESTATED REGIONAL WASTEWATER DISPOSAL
AGREEMENT is made and entered into this _____ day of _________________, 2018, by and
between the CITY OF SAN DIEGO, a municipal corporation (“the City”); 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 (the “Participating Agencies”).
RECITALS
WHEREAS, the City and the Participating Agencies are autonomous entities each having
the authority to provide and to contract for the conveyance, treatment and disposal of
wastewater; and
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. The
Resolution approved and supported the City’s efforts to develop an implementation strategy to
accomplish secondary equivalency atoffload wastewater flow from the Point Loma Wastewater
Treatment Plant through implementation of potable reuse, resulting in effluent discharged to the
Pacific Ocean being equivalent to what would be achieved by upgrading the Point Loma
Wastewater Treatment Plant to a secondary treatment plant (secondary equivalency); and
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60409.00001\30914102.4
WHEREAS, the City intends tois implementing a phased, multi-year program to produce
up toat least 83 million gallons per day of safe, reliable potable water for the City using the new,
expanded, or modified facilities, some of which will include Metro System facilities, in order to
achieve secondary equivalency under the Clean Water Act at the Point Loma Wastewater
Treatment Plant by offloading wastewater from the Point Loma plant; and
WHEREAS, if secondary equivalency is recognized through federal legislation amending
the Clean Water Act, 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
WHEREAS, Section XIV, subsection B, of the 1998 Agreement provided that the Parties
may amend the Agreement by a written agreement between the City and all Participating
Agencies stating the parties’ intent to amend the Agreement; and
WHEREAS, in order to comprehensively and equitably address the costs and revenues
associated with the Pure Water Program and the related construction, expansion, and/or
modification of Metro System facilities, the City and Participating Agencies wish to amend and
restate the Regional Wastewater Disposal Agreement as provided herein.
THEREFORE, in consideration of the mutual promises set forth herein, the City and the
Participating Agencies agree as follows:
I. DEFINITIONS
A. 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 365
days.
B. Capital Improvement Costs are costs associated with the planning, design,
financing, construction, or reconstruction of facilities.
C. Chemical Oxygen Demand or “COD” means the measure of the chemically
decomposable material in wastewater, as determined by the procedures specified
in the most current edition of “Standard Methods for the Examination for Water
and Wastewater,” or any successor publication which establishes the industry
standard.
D. City Water Utility PW Costs are those Pure Water Program costs allocated to
the City’s water utility and therefore which are excluded as Metro System costs
-3- 60409.00001\30914102.3
60409.00001\30914102.4
under Exhibit F and are the responsibility of City’s water utility.
E. 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 limit set forth in Exhibit B attached hereto. Contract
Capacity is stated in terms of Annual Average Daily Flow.
F. Flow is the amount of wastewater discharged by the City and each Participating
Agency.
G. Functional-Design Methodology shall mean the process of allocating Operation
and Maintenance Costs and Capital Improvement Costs to Flow and Strength
parameters recognizing the benefits of both the design criteria and the primary
function of a unit process.
H. Metro System Costs are those costs set forth in Section V.B.1.
I. Metro System Revenues are those revenues set forth in Section V.B.2.
I.J. Metro Wastewater JPA or Metro JPA shall mean the Joint Powers Authority
created by agreement [on file, registered with State?]
J.K. Metropolitan Sewerage System or Metro System shall mean and consist of
those facilities and contract rights to facilities which are shown and/or described
in Exhibit A attached hereto and incorporated by this reference, including any
amendments thereto authorized by this Agreement.
K.L. Municipal System shall mean the City’s wastewater collection system, which
consists of pipelines and pump stations, that collects wastewater within the City
of San Diego and conveys it to the Metropolitan Sewerage System for treatment
and disposal.
L.M. New Capacity is the capacity to discharge wastewater outside the Metro System,
above the Contract Capacity set forth in Exhibit B attached hereto.
M.N. New Contract Capacity is the capacity to discharge wastewater into the Metro
System, above the Contract Capacity set forth in Exhibit B attached hereto.
N.O. North City Water Reclamation Plant is the 30 million gallons per day (as of the
date of this Agreement) wastewater treatment facility which includes four major
processes: primary treatment, secondary treatment, tertiary treatment, and
disinfection.
O.P. Operation and Maintenance Costs are the costs of those items and activities
required by sound engineering and management practices to keep the conveyance,
disposal, treatment, and reuse facilities functioning in accordance with all
applicable laws, rules, and regulations.
-4- 60409.00001\30914102.3
60409.00001\30914102.4
P.Q. Point Loma Wastewater Treatment Plant or Point Loma WTP is the 240
million gallons per day (as of the date of this Agreement) advanced primary
treatment plant which includes four major processes: screening, grit removal,
sedimentation, and digestion.
Q.R. Pure Water Program is the City’s phased, multi-year program to produce up
toat least 83 million gallons per day of Repurified Water using new, expanded, or
modified facilities, some of which will include Metro System facilities.
R.S. Reclaimed Water (or 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.
S.T. Reclaimed Water (or Recycled Water) Distribution System shall mean and
consist of those eight (8) reclaimed water projects listed in Attachment B of the
Stipulated Final Order for Injunctive Relief approved by the U.S. District Court
on June 6, 1997 in U.S.A. v. City of San Diego, Case No. 88-1101-B, and
attached hereto as Exhibit E.
T.U. Repurified Water shall mean water which, as a result of advanced treatment of
Rreclaimed wWater, is suitable for use as a source of domestic (or potable) water
supply.
U.V. Return Flow shall mean the effluent created by the dewatering of digested
biosolids, which includes centrate.
V.W. Reuse shall mean to use again, such as water which has been reclaimed or
repurified, or sludge that has been converted to biosolids for beneficial use.
W.X. South Bay Land/Ocean Outfall is the facility that is jointly owned by the
International Boundary & Water Commission (U.S. Section IBWC) and the City
of San Diego. The Outfall is planned to convey and discharge treated effluent
from the IBWC’s International Wastewater Treatment Plant and treated effluent
from the City’s South Bay Water Reclamation Plant and the South Bay Secondary
Treatment 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.
X.Y. Strength means the measurement of Suspended Solids (SS) and Chemical
Oxygen Demand (COD) within the wastewater Flow and any other measurement
required by law after the date of this Agreement.
Y.Z. “Suspended Solids” or “SS” 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
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standard.
Z.AA. 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.
AA.BB. 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[1] to the extent being used to produce Repurified Water, the North City
Advanced Water Purification Facility to be located across the street from the
North City Water Reclamation Plant (“North City AWP Facility”); the Repurified
Water conveyance system, which will transport Repurified Water from the North
City AWP 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 City’s 83 million gallons
per day Pure Water Program.
II. OWNERSHIP AND OPERATION OF THE METRO SYSTEM
A.2.1 Rights of the Parties.
The City is the owner of the Metro System, and of any additions to the Metro
System or other facilities constructed pursuant to this Agreement. 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 Commission. The Participating Agencies shall have
a contractual right to use the Metro System and to participate in its operation as set forth in this
Agreement. Subject to the terms of this Agreement, and in conformance with all applicable laws,
the City may transfer ownership of all or part of the Metro System at any time. In the event of a
transfer, the City’s successor shall be bound by the terms of this Agreement. Subject to the
terms of this Agreement, 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 determines, after consultation with the Participating Agencies involved,
that the proposed transfer will imbalance, or will otherwise adversely impact the City’s ability to
operate the Metro System.
B.2.2 Metro System Services.
1.2.2.1 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.
2.2.2.2 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.
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3.2.2.3 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.
C.2.3 Flow Commitment.
1.2.3.1 Absent agreement of the parties, all Flow from the Participating Agencies
and the City, up to the capacity limits set forth in Exhibit B or any
amendments thereto, shall remain in the Metro System.
2.2.3.2 This Agreement shall not preclude any Participating Agency from
diverting Flow from the Metro System as a result of the construction of
reclamation facilities or New Capacity outside of the Metro System.
3.2.3.3 Any Participating Agency may negotiate an agreement with the City to
withdraw all Flow from the Metro System, which at a minimum requires
the Agency to pay its proportionate share of Capital Improvement Costs.
D.2.4 Funding Obligations.
Nothing in this Section or in this Agreement shall obligate the City to make any
payment for the acquisition, construction, maintenance or operation of the Metro System from
moneys derived from taxes or from any income and revenue of the City other than moneys in or
sewer revenues which go into the Sewer Revenue Fund for the Metro System and from
construction funds derived from the sale of such sewer revenue bonds for the Metro System as
are duly authorized. Nothing in this contract shall be construed to obligate the City 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. Nothing in this Section, however, or in this Agreement shall 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.
Nothing herein shall relieve the City from its obligations to fund and carry out this Agreement.
Nothing in this Section or in this Agreement shall obligate any Participating Agency to make any
payment 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, or which is
not authorized by law.
E.2.5 Financial Statements.
1.2.5.1 The City shall keep appropriate records and accounts of all costs and
expenses relating to conveyance, treatment, disposal, and reuse of
wastewater, and the acquisition, planning, design, construction,
administration, monitoring, operation and maintenance of the Metro
System.
2.2.5.2 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
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independent certified public accounting firm appointed by the City
pursuant to generally accepted accounting principles. A copy of said
report shall be available to any Participating Agency.
F.2.6 Limitations on Types and Condition of Wastewater.
1.2.6.1 Each Participating Agency will comply with all applicable laws, rules and
regulations including its regulatory obligations associated with the
discharge of wastewater into its respective system and from such system
into the Metro System.
2.2.6.2 Each Participating Agency will minimize to the maximum extent
practicable, the infiltration and inflow of surface, ground or stormwaters
into its respective wastewater systems.
3.2.6.3 Each Participating Agency will insure that all industrial users of its
wastewater system are regulated by an effective industrial pretreatment
program that conforms to all to all applicable laws, rules and regulations
and that is acceptable to the City. Provided, however, that the City shall
not require the Participating Agencies to take any actions beyond that
which is required under applicable laws, rules and regulations that can be
taken but are not being taken by the City.
4.2.6.4 The City and the Participating Agencies agree that nothing in this
Agreement, including the termination of the existing sewage disposal
agreements, shall affect the validity of the Interjurisdictional Pretreatment
Agreements, or the separate transportation agreements that are currently in
effect between or among the City and the Participating Agencies.
5.2.6.5 Each Participating Agency will not discharge a substantial amount of
sewage originating outside its respective boundaries into the Metro
System without the approval of the City.
6.2.6.6 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.
7.2.6.7 In the event a regulatory agency imposes any penalty or takes other
enforcement action relating to the conveyance, treatment, disposal or reuse
of wastewater in or from the Metro System, the City shall determine
whether the City or a Participating Agency or Agencies caused or
contributed to such penalty or enforcement actions. The City shall
allocate the penalty or other relief, including the costs of defense, to the
party or parties responsible. Each responsible party, whether a
Participating Agency or the City, shall be obligated to pay its share of such
penalty or other relief, and any costs of defense. In the event that the City
cannot make such an allocation, the cost of such penalty or other relief
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shall be shared by the Participating Agencies and the City proportionately
based on Flow and Strength.
G.2.7 Right of First Refusal.
1.2.7.1 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 or
reclamation facility or outfall within the Metro System.
2.2.7.2 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 Participating Agencies shall have thirty days
from receipt of the Offer (“the Intent to Respond Period”) in which to
notify the City of their intent to respond to the Offer. The Participating
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.
3.2.7.3 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 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
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City from the terms and price contained in the Offer absent compliance
with the terms of this Section.
4.2.7.4 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 H.2.7.1. if the
City 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.
H.2.8 Pure Water San Diego Program.
1. Each new, expanded, or modified Metro System facility which is used in
relation to the production of Repurified Water (in addition to the modification and expansion of
the North City Water Reclamation Facility) shall be governed by this Agreement and Exhibit F,
attached hereto and incorporated herein. The parties acknowledge and agree that additional
amendments to Exhibit F will be necessary based on the actual Repurified Water processes
selected and the nature of specific facilities. Therefore, notwithstanding Section XIV, subsection
B14.2 (Amendment of Agreement), the City’s Mayor and the chief executive officer of eachCity
and the Metro JPA, by a majority vote of the Participating Agenciesits member agencies[2], shall
have the authority to execute ministerial amendments to Sections A.2 and B of Exhibit F which
identify improvements to specific facilities or portions thereof as being Metro System Costs or
City Water Utility PW Costs. For purposes of this provisionsection, a “ministerial amendment”
is a written amendment that: (1) allocates costs related to new, expanded, or modified Metro
System facilities in connection with the production of Repurified Water, and (2) is generally
consistent with the cost allocation principles set forth in the originalin Section A.1 of Exhibit F,
which is attached to this Agreement.
2. Nothing in this Agreement or Exhibit F limits or restricts the right of the
City or the Participating Agencies to enter into separate agreements the purchase or sale of
Repurified Water produced by the Water Repurification System or sharing in City Water
Utility’s associated capital, debt, operation, and maintenance costs. Under such circumstances,
the cost allocation and commodity rate delineated in Exhibit F will remain unchanged.[3]
III. III PAYMENT AND MONITORING PROVISIONS
A.3.1 Payment for Metro System Facilities.
Through the system of charges set forth in Section Article V 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 hereto, which is incorporated
herein by reference.
B.3.2 Payment for Additional Metro System Facilities.
Through the system of charges set forth in Section Article V of this Agreement,
each Participating Agency shall pay its share of the costs of acquisition, or planning, design and
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construction of such facilities in addition to those set forth on Exhibit A as are necessary for the
Metro System to maintain compliance with applicable laws, rules and regulations, including the
Ocean Pollution Reduction Act of 1994 and its successor(s), present and future waivers of
applicable treatment standards at any Metro System treatment facility, and all facilities as are
necessary to convey, treat, dispose, and reuse wastewater in the Metro System to provide the
Contract Capacity set forth in Exhibit B, to maintain hydraulic capacity and as otherwise
required by sound engineering principles. As a ministerial matter, the City shall amend Exhibit A
from time to time to reflect such additional facilities and shall give notice of any amendments to
the Participating Agencies. The City shall keep an updated version of Exhibit A on file with the
City ClerkMetro JPA. Exhibit A may be amended to reflect other changes to the Metro System
only as expressly provided in this Agreement.
C.3.3 Payment for Operation and Maintenance.
Through the system of charges set forth in Section Article V 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 Water Repurification System, which are City Water Utility PW Costs.
D.3.4 Charges Based on Flow and Strength; Exception.[4]
1.3.4.1 Except as otherwise described in this subsection D3.4, a Participating
Agency’s share of the charges in this Section Article III shall be assessed
pursuant to Section Article V of this Agreement based on its proportionate
Flow in the Metro System and the Strength of its wastewater.
2.3.4.2 Notwithstanding the abovesection 3.4.1, or any other provision of this
Agreement, a Participating Agency’s share of Pure Water Program Capital
Improvement Costs and Pure Water Program revenues[5] attributable to the
Metro System under Exhibit F shall be assessed or credited based on the
parties’ “Metro Capacity Rights[6].,” which are based on projections of
each party’s 2050 Flow. Metro Capacity Rights are based on projections
of each party’s 2050 Flow as set forth in Exhibit G[7], which is attached
hereto and incorporated herein. The City shall annually determine allocate
the estimated and actual costs and revenues which are attributable to the
Metro System under Exhibit F and take into account the above assessment
methodusing Metro Capacity Rights when estimating quarterly payments
and conducting year-end adjustments under Section Article V.
3.3.4.3 Each party recognizes that operation within respective Metro Capacity
Rights is essential to the accurate allocation of costs and revenues under
the Pure Water Program. In recognition of same, the parties agree as
follows:
a.3.4.3.1 If any party’s Flow exceeds the sum of its Metro Capacity
Rights and its portion of the Reserve Capacity Pool (as shown in
Exhibit G) for any continuous consecutive three (3) month period,
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such party shall pay for the use of such capacity from the Reserve
Capacity Pool. Payment for such use of the Reserve Capacity Pool
shall be made as part of the yearly billing adjustments under
Section V.B5.2.4 and shall be credited to offset the other parties’
Pure Water Program Capital Improvement Costs. Such payments
shall be based on the following amounts, which shall be annually
adjusted each July 1 (starting on July 1, 2018) to reflect the annual
percentage change in the Engineering News Record – Los Angeles
construction cost index[8]:
(1)3.4.3.1.1 $_____ per MGD (for use of any portion of the
Reserve Capacity Pool up to four (4) times such party’s
share of the Reserve Capacity Pool)
(2)3.4.3.1.2 $_____ per MGD (for use of any portion of the
Reserve Capacity Pool over four (4) times such party’s
share of the Reserve Capacity Pool)
b.3.4.3.2 Notwithstanding the amounts set forth in Exhibit G, the
following parties will have the following Metro Capacity Rights
until July 1, 2023:
(1)3.4.3.2.1 Padre Dam: 2.48 MGD
(2)3.4.3.2.2 San Diego County Sanitation District: 10.959 MGD
(3)3.4.3.2.3 El Cajon: 7.8 MGD
c.3.4.3.3 Notwithstanding the amounts set forth in Exhibit G, the
following parties will have the following Metro Capacity Rights
until July 1, 2028[9]:
(1)3.4.3.3.1 San Diego County Sanitation District: 5.739 MGD
(2)3.4.3.3.2 El Cajon: 7.8 MGD
d.3.4.3.4 If any party’s Flow exceeds the sum of its Metro Capacity
Rights and its portion of the Reserve Capacity Pool (as shown in
Exhibit G) for any continuous consecutive six (6) month period,
the City shall contract with an independent consultant (who shall
be approved by a majority of the Metro Commission) to prepare an
amendment to Exhibit G that accurately reflectsadjusts projections
of 2050 Flow based on the amount of Flow that exceeds the party’s
Metro Capacity Rights. The revised Exhibit G prepared by the
consultantUpon approval by the Metro JPA, the City shall, as a
ministerial matter, be adopted by the City within 180 days of such
exceedanceamend Exhibit G to reflect the new projects of 2015
Flow. The City shall give notice of the amendment of Exhibit G to
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each Participating Agency, and shall provide copies of the
amendment with the notice. The City shall keep an updated
version of Exhibit G on file with the City ClerkMetro JPA. If the
City and the Metro JPA cannot agree on an amendment to Exhibit
G, the matter shall be submitted to dispute resolution pursuant to
Article IX.
e.3.4.3.5 If Exhibit G is amended to update one or more parties’
Metro Capacity Rights, the change in Metro Capacity Rights shall
be retroactive in effect[10], 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 previous Metro
Capacity Rights (which were based on prior projections of 2050
Flow) shall pay the difference in its quarterly payments the
following fiscal year; any party that overpaid based on previous
Metro Capacity Rights shall receive a credit in its quarterly
payments the following fiscal year.
E.3.5 Monitoring Flow and Strength.
1.3.5.1 The City shall monitor wastewater that is discharged into the Metro
System for Flow and Strength. The City shall own and operate as part of
the Metro System monitoring devices which will measure the amount of
daily wastewater discharged into the Metro System. These devices shall be
installed at locations appropriate to accurately monitor Flow and Strength.
The City may also monitor wastewater Flow and Strength at other
locations as it deems appropriate.
2.3.5.2 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.
3.3.5.3 The City shall provide its plans for the monitoring system and for the
procedures it will use to determine Strength to the Participating Agencies
for review and comment prior to implementation.
4.3.5.4 The City shall report Flow and Strength data to the Participating Agencies
at least quarterly.
IV.III. CAPACITY RIGHTS
A.4.1 Contract Capacity.
In consideration of the obligations in this Agreement, each Participating Agency
shall have a contractual right to discharge wastewater to the Metro System up to the Contract
Capacity set forth in Exhibit B.
B.4.2 Transfers of Contract Capacity.
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The Participating Agencies and the City may buy, sell or exchange all or part of
their Contract Capacity among themselves on such terms as they may agree upon. The City shall
be notified prior to any transfer. Any transfer shall be first approved by the City. No Contract
Capacity may be transferred if the City determines, after consultation with the Participating
Agencies involved in the transaction, that said transfer will unbalance, 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.
Following the City’s consent, as a ministerial matter, the Contract Capacity set forth in Exhibit B
shall be adjusted to reflect the approved transfer.
C.4.3 Allocation of Additional Capacity.
The parties recognize that the City’s applicable permits for 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 or as a result of regulatory action. This additional
capacity shall be allocated as follows:
1.4.3.1 Except as provided in subsection section 4.3.2 below, in the event that the
Metro System is rerated so that additional permitted capacity is created,
said capacity shall be allocated proportionately based upon the Metro
System charges that have been paid since July 1, 1995 to the date of
rerating.
2.4.3.2 In the event that the additional permitted capacity is created as the result
of the construction of non-Metro System facilities, or as the result of the
construction of facilities pursuant to Section Article VII, such additional
capacity shall be allocated proportionately based on the payments made to
plan, design and construct such facilities.
D.4.4 Deductions in Contract Capacity.
The parties further recognize that the Contract Capacity in Exhibit B may be
modified 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
rerated to a level below the total capacity set forth in Exhibit B, the Contract Capacity in Exhibit
B shall be reallocated proportionately pending the acquisition or construction of new facilities.
The City shall acquire or construct such facilities as necessary to provide the Contract Capacity
rights set forth in Exhibit B, as planning and capacity needs require. The costs of such facilities
shall be assessed pursuant to Section III.B. above3.2.
E.4.5 Amendments to Exhibits B and C.
As a ministerial matter, the City shall prepare amendments to Exhibits B and C to
reflect any adjustment in Contract Capacity pursuant to this Section within ninety (90) days after
the adjustment is made. The City shall give notice of the amendments to each Participating
Agency, and shall provide copies of the amendments with the notice. The City shall keep an
updated version of Exhibits B and C on file with the City ClerkMetro JPA.
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F.4.6 The South Bay Land/Ocean Outfall.
Nothing in this Section shall limit the City’s right to transfer capacity service
rights in that portion of the South Bay Land/Ocean Outfall which is not part of the Metro
System.
V. V. SYSTEM OF CHARGES
A.5.1 Charges Authorized.
The City agrees to implement and the Participating Agencies agree to abide by a
new system of charges. This new system allows the City to equitably recover from all
Participating Agencies their proportional share of the net Metro System Costs through the
imposition of the following charges:
1.5.1.1 SSC (Sewer System Charge);[11]
2.5.1.2 NCCC (New Contract Capacity Charge).
B.5.2 SSC (Sewer System Charge).
The City shall determine the SSC based on the projected Metro System Costs (as
defined below) for the forthcoming fiscal year, less all Metro System Revenues (as defined
below).
1.5.2.1 Metro System Costs
a.5.2.1.1 The following shall at a minimum be considered Metro
System Costs for purposes of calculating the annual SSC:
(1)5.2.1.1.1 Except as provided in Excluded Costs, subsection
b.section 5.2.1.2 below(Excluded Costs), the annual
costs associated with administration, operation,
maintenance, 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. Overhead shall be
calculated using accepted accounting practices to reflect
the overhead costs of the Metro System.
(2)5.2.1.1.2 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 II.F2.6.7.
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(3)5.2.1.1.3 Costs incurred by the City, including attorneys’
fees, that are [12]necessary to implement the terms of
this Agreement.
b.5.2.1.2 Excluded Costs. The following items shall not be
considered Metro System Costs for purposes of calculating the
annual SSC:
(1)5.2.1.2.1 Costs related to the City of San Diego’s Municipal
System as determined by reasonable calculations;
(2)5.2.1.2.2 Costs related to the treatment of sewage from any
agency which is not a party to this Agreement;
(3)5.2.1.2.3 Costs related to the inspection and monitoring
program for the industrial dischargers located in San
Diego, including associated administrative and
laboratory services;
(4)5.2.1.2.4 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)5.2.1.2.5 Capital Improvement Costs of any non-Metro
System facility.
(6)5.2.1.2.6 Capital Improvement Costs for which an NCCC is
paid.
(7)5.2.1.2.7 City Water Utility PW Costs as defined in
Exhibit F.[13]
2.5.2.2 Metro System Revenues.
a.5.2.2.1 The following revenues shall be at a minimum considered
Metro System Revenues for purposes of determining the annual
SSC:
(1)5.2.2.1.1 Any grant or loan receipts or any other receipts that
are attributable to the Metro System, 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, and any grant, loan, or other receipts
attributable to the Metro System components of the
Pure Water Program[14].
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(2)5.2.2.1.2 All compensation or receipts from the sale or other
conveyance or transfer of any Metro System by-
products, including, but not limited to gas, electrical
energy, sludge products, and Reclaimed Water
(excepting therefrom any receipts allocated pursuant to
subsection 2.a.(3) belowsection 5.2.2.1.3); provided
however, that this shall not include the Secondary
Effluent Commodity Rate[15], which is specifically
addressed in subsection 2.a.(6) below5.2.2.1.6.
(3)5.2.2.1.3 The distribution of revenue from the sale of
Reclaimed Water from the North City Water
Reclamation Plant, including incentives for the sale of
Reclaimed Water, shall first be used to pay for the cost
of the Reclaimed Water Distribution System, then the
cost of the Operation and Maintenance of the Tertiary
Component of the North City Water Reclamation Plant
that can be allocated to the production of Reclaimed
Water, and then to the Metro System.
(4)5.2.2.1.4 Any portion of an NCCC that constitutes
reimbursement of costs pursuant to Section VII.A7.1.4.
(5)5.2.2.1.5 Any penalties paid under Section VII.C7.3.
(6)5.2.2.1.6 Proceeds from the Secondary Effluent Commodity
Rate, as calculated under Exhibit F and allocated
among the Participating Agencies in the proportions set
forth in Exhibit G[16].
b.5.2.2.2 Excluded Revenue
(1)5.2.2.2.1 Capital Improvement Costs for which an NCCC is
paid;
(2)5.2.2.2.2 Proceeds from the issuance of debt for Metro
Ssystem projects.
(3)5.2.2.2.3 Proceeds from the sale of Reclaimed Water used to
pay for the Reclaimed Water Distribution System
pursuant to subsection 2.a.(3)5.2.2.1.3 above.
3.5.2.3 Calculation of SSC Rates.
a.5.2.3.1 Prior to the initial implementation of the new system of
charges, the City shall prepare a sample fiscal year estimate setting
forth the methodology and sampling data used as a base for
Strength based billing (SBB) which includes Flow and Strength
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(Chemical Oxygen Demand (COD) and Suspended Solids (SS)).
The analysis shall be submitted to each Participating Agency.
b.5.2.3.2 The City shall determine the unit SSC rates by allocating
net costs (Metro System Costs less Metro System Revenues)
between parameters of Flow, COD and SS. This allocation is based
on the approved Functional-Design Methodology analyses for
individual Capital Improvement Projects (CIPs) and estimated
Operation and Maintenance (O&M) Costs allocated to the three
parameters. The City may revise the calculations to include any
other measurement required by law after the effective date of this
Agreement.
c.5.2.3.3 The net cost allocated to each of the three parameters
(Flow, COD and SS) shall be divided by the total Metro System
quantity for that parameter to determine the unit rates for Flow,
COD and SS. These unit rates shall apply uniformly to all
Participating Agencies.
4.5.2.4 Estimate and Billing Schedule and Year End Adjustment
a.5.2.4.1 Estimate - The City shall estimate the SSC rates on an
annual basis prior to January 15. The City shall quantify the SSC
rates by estimating the quantity of Flow, COD and SS for each
party, based on that party’s actual flow and the cumulative data of
sampling for COD and SS over the preceding years. If cumulative
data is no longer indicative of discharge from a Participating
Agency due to the implementation of methods to reduce Strength,
previous higher readings may be eliminated.
b.5.2.4.2 Costs of treating Return Flow for solids handling will be
allocated to the Participating Agencies in proportion to their Flow
and Strength. Return Flow will not be counted against the
Participating Agencies’ Contract Capacity as shown in Exhibit B.
c.5.2.4.3 SSC Billing Schedule - 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,
COD and SS, divided by four.
d.5.2.4.4 Year-End Adjustments - At the end of each fiscal year, the
City shall determine the actual Metro System. Costs and the actual
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, COD and SS based on
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actual costs for the year. The City shall then recalculate the SSC
for the year using actual costs for the year, actual Flow, and
cumulative Strength factors (COD, SS and Return Flow) for the
City and for each Participating Agency. The City shall credit any
future charges or bill for any additional amounts due, the quarter
after the prior year costs have been audited.
C.5.3 NCCC (New Contract Capacity Charge).
If New Contract Capacity is required or requested by a Participating Agency,
pursuant to Section Article VII, the Metro System shall provide the needed or requested capacity,
provided that the Participating Agency agrees to pay an NCCC in the amount required to provide
the New Contract Capacity. New Contract Capacity shall be provided pursuant to Section Article
VII.
D.5.4 Debt Financing.
The City retains the sole right to determine the timing and amount of debt
financing required to provide Metro System Facilities.
E.5.5 Allocation of Operating Reserves and Debt Service Coverage.[17]
The parties shall continue to comply with the 2010 Administrative Protocol on
Allocation of Operating Reserves and Debt Service Coverage to Participating Agencies, attached
hereto and incorporated herein as Exhibit C.
VI. PLANNING
A.6.1 Projected Flow and Capacity Report.
Commencing on July 1, 1999, each Participating Agency shall provide the City
and the Metro Commission with a ten-year projection of its Flow and capacity requirements from
the Metro System. The Agencies shall disclose any plans to acquire New Capacity outside the
Metro System. This “Projected Flow and Capacity Report” shall be updated annually.
B.6.2 Other Planning Information.
Each Participating Agency shall provide the City with such additional information
as requested by the City as necessary for Metro System planning purposes.
C.6.3 Ten-Year Capital Improvement Plan.
The City shall prepare a Ten-Year Capital Improvement Plan for the Metro
System that describes the facilities necessary to convey, treat, and dispose of, or reuse all Flow in
the Metro System in compliance with all applicable rules, laws and regulations. The plan shall be
updated annually.
D.6.4 Notice to Metro Commission.
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In the event that the City is not able to include a facility in the Ten-Year Capital
Improvement Plan, the City shall notify the Metro Commission as soon as possible before the
detailed design or construction of such facility provided that the facility will significantly impact
the Metro System.
VII. FACILITIES SOLELY FOR NEW CONTRACT CAPACITY
The Participating Agencies and City are obligated to pay for the acquisition or
planning, design, and construction of new facilities in the Metro System that are needed solely to
provide New Contract Capacity only under the terms provided below.
A.7.1 Determination of Need for New Contract Capacity.
1.7.1.1 As part of its planning efforts, and considering the planning information
provided to the City by the Participating Agencies, the City shall
determine when additional facilities beyond those acquired or constructed
pursuant to Section Article III above will be necessary solely to
accommodate a need for New Contract Capacity in the Metro System,
whether by the City or by the Participating Agencies. The City shall
determine: (1) the amount of New Contract Capacity needed; (2) the
Participating Agency or Agencies, or the City, as the case may be, in need
of the New Contract Capacity; (3) the type and location of any capital
improvements necessary to provide the New Contract Capacity; (4) the
projected costs of any necessary capital improvements; and, (5) the
allocation of the cost of any such facilities to the Participating Agency
and/or the City for which any New Contract Capacity is being developed.
The City shall notify the Participating Agencies of its determination within
sixty days of making such determination.
2.7.1.2 The City or Participating Agency or Agencies in need of New Contract
Capacity as determined by the City pursuant to Paragraph 1section 7.1.1
above, may choose, in their sole discretion, to obtain New Capacity
outside of. the Metro System in lieu of New Contract Capacity. Under such
circumstances, the Participating Agency or Agencies shall commit to the
City in writing their intent to obtain such New Capacity. Upon such
commitment, the City shall not be required to provide New Contract
Capacity to such Agency or Agencies as otherwise required under this
Agreement.
3.7.1.3 The Participating Agencies shall have six months from the date of notice
of the determination within which to comment on or challenge all or part
of the City’s determination regarding New Contract Capacity, or to agree
thereto or to commit, in writing, to obtain New Capacity outside of the
Metro System. Any Participating Agency objecting to the City’s
determination shall have the burden to commence and diligently pursue
the formal dispute resolution procedures of this Agreement within said six
month period. The City’s determination shall become final at the close of
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the six month comment and objection period. The City’s determination
shall remain valid notwithstanding commencement of dispute resolution
unless and until set aside by a final, binding, determination of an
arbitratorotherwise agreed pursuant to the dispute resolution process set
forth in this Agreementin Article IX.
4.7.1.4 The City and the Participating Agency or Agencies which need New
Contract Capacity shall thereafter enter into an agreement specifying the
terms and conditions pursuant to which the New Contract Capacity will be
provided, including the amount of capacity and the New Contract
Capacity. Each party obtaining New Contract Capacity shall reimburse the
Metro System for the costs of acquisition, planning, design, and
construction of facilities necessary to provide the New Contract Capacity
that have been paid by other parties under Section VII.B7.2.3.
5.7.1.5 The parties recognize that the City may acquire and plan, design and
construct facilities that are authorized pursuant to both Section Article III
and Section Article VII of this Agreement. Under such circumstances, the
City shall allocate the costs and capacity of such facilities pursuant to
SectionArticle III and Section VII.A7.1.1 as applicable.
B.7.2 Charges for Facilities Providing New Contract Capacity
1.7.2.1 The expense of acquisition, planning, design, and construction of New
Contract Capacity shall be borne by the City or the Participating Agency
or Agencies in need of such New Contract Capacity.
2.7.2.2 Notwithstanding any provision in this Agreement, the City and the
Participating Agencies shall pay for the Operation and Maintenance Costs
of all facilities pursuant to the payment provisions of Section Article III,
including those facilities acquired and constructed to provide New
Contract Capacity in the Metro System.
3.7.2.3 Charges for the acquisition, planning, design and construction of facilities
solely to provide New Contract Capacity shall be paid for by the
Participating Agencies and the City pursuant to the payment provisions in
Section Article III of this Agreement until an agreement is reached under
Section VII.A7.1.4. or pending the resolution of any dispute relating to the
City’s determination with respect to New Contract Capacity.
4.7.2.4 As a ministerial matter, the City shall prepare amendments to Exhibits A
and B to reflect the acquisition or construction of facilities to provide New
Contract Capacity pursuant to this SectionArticle. The City shall give
notice of the Amendments to the Participating Agencies, and shall provide
copies of the Amendments with the notice.
C.7.3 Penalty for Failure to Pay.
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1.7.3.1 The parties recognize that appropriate capacity and long term planning
for same are essential to the proper provision of sewerage service. In
recognition of same, the parties agree that discharge beyond Contract
Capacity should be penalized. Therefore, in the event that a Participating
Agency exceeds its Contract Capacity after the City has given notice that
New Capacity is required, said Participating Agency shall be assessed
and pay a quarterly penalty until such time as the Participating Agency
obtains the required New Capacity. The penalty shall be fifteen percent
(15%) of the quarterly charges authorized pursuant to this Agreement
times the amount of Flow which exceeds the Participating Agency’s
Contract Capacity for the first quarter, twenty-five percent (25%) of such
amount for the second quarter, thirty percent (30%) of such amount for
the third quarter, and thirty-five percent (35%) of such amount for every
quarter thereafter.
2.7.3.2 In the event that a Participating Agency fails to pay the charges imposed
under this Article after the City has given notice that payment is
required, said Participating Agency shall be assessed and shall pay a
penalty of fifteen percent (15%) of the total outstanding charges each
quarter until said charges are paid in full.[18]
VIII. THE METRO COMMISSION
A.8.1 Membership.
The Metro Commission shall consist of one representative from each Participating
Agency. Each Participating Agency shall have the right to appoint a representative of its choice
to the Metro Commission. 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 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. The Metro
Commission shall establish its own meeting schedule and rules of conduct. Metro Commission
meetings may be consolidated with meetings of the Metro JPA. The City may participate in the
Metro Commission on an ex officio, non-voting, basis.
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B.8.2 Advisory Responsibilities of Metro Commission.
1.8.2.1 The Metro Commission shall act as an advisory body, advising the City on
matters affecting the Metro System. The City shall present the position of
the majority of the Metro Commission to the City’s governing body in
written staff reports. The Metro Commission may prepare and submit
materials in advance and may appear at any hearings on Metro System
matters and present its majority position to the governing body of the City.
2.8.2.2 The Metro Commission may advise the City of its position on any issue
relevant to the Metro System.
IX. DISPUTE RESOLUTION
This Section governs all disputes arising out of this Agreement.
A.9.1 Voluntary Mandatory Non-Binding Mediation.
If a dispute arises between the City and any Participating Agency relating to or
arising from a party’s obligations under this Agreement that cannot be resolved through informal
discussions and meetings, the City and the Participating Agency 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.Upon notice to all of the parties involved, any dispute may be
submitted to a mutually-acceptable mediator, including a consultant specializing in the subject
matter of the dispute, for determination of the issue(s) raised. Unless the parties involved agree
in writing otherwise, the decision of the mediator or consultant shall not be final and binding. In
the event that there is no agreement to mediate the dispute, any party may proceed directly to
Arbitration.
B.9.2 ArbitrationSelection of Mediator.
A single mediator that is acceptable to the City and the Participating Agency shall
be used to mediate the dispute. 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.
9.3 Mediation Expenses.
The expenses of witnesses for either side shall be paid by the party producing
such witnesses. All mediation costs, including required traveling and other expenses of the
mediator, and the cost of any proofs or expert advice produced at the direct request of the
mediator, shall be Metro System Costs.
9.4 Conduct of Mediation.
Mediation hearings will be conducted in an informal manner. Discovery shall not
be allowed. The discussions, statements, writings and admissions will be confidential to the
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proceedings (pursuant to California Evidence Code Sections 1115 - 1128) 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 City and the Participating Agency 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.
9.5 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.Arbitration shall be commenced by sending a Notice of Demand for
Arbitration 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 Commission. Notice shall be given in
accordance with Section XII. After such notice, any party that fails to timely participate by
giving notice within forty-five (45) days thereafter, shall be barred from the noticed action. The
scope of the arbitrator’s jurisdiction shall not include the authority to amend the terms of this
Agreement.
1. The arbitration shall be conducted by a mutually-acceptable dispute
resolution entity which utilizes retired judges as arbitrators or arbitrators
agreed to by the parties. If the parties cannot agree on such an entity, then
the American Arbitration Association shall be used.
2. All arbitrations shall be conducted in accordance within California Code
of Civil Procedure Sections 1282 et seq., provided, however, that in the
event of a conflict between the Code of Civil Procedure arbitration
provisions and the provisions of this Agreement, the provisions of this
Agreement control.
3. Discovery regarding the subject matter of the arbitration shall be allowed
as provided in Code of Civil Procedure Section 1283.05 (or its
successors), except that depositions may be taken without first obtaining
permission from the arbitrator. The arbitrator’s fee shall be paid in equal
shares by the parties who participate in the arbitration. The arbitrator may
award costs to the prevailing party, except, however, all costs incurred by
the City for arbitration arising under Section VII shall be a Metro System
cost and charged accordingly. The decision of the arbitrator shall be final
and binding.
C.9.6 Performance Required During Dispute.
Nothing in this Section Article 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
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disputed activity and disputed payments, pending the resolution of any dispute under this
Agreement.
X. INSURANCE AND INDEMNITY
A.10.1 City Shall Maintain All Required Insurance.
1.10.1.1 The City shall maintain all insurance required by law, including
workers’ compensation insurance, associated with the operation of the
Metro System.
2.10.1.2 Throughout the term of this Agreement the City shall procure and
maintain in effect liability insurance covering, to the extent reasonably
available, any and all liability of the City, the Metro System and the
Participating Agencies, including their respective officers, directors,
agents, and employees, if any, with respect to or arising out of the
ownership, maintenance, operation, use and/or occupancy of the Metro
System and all operations incidental thereto, including but not limited to
structural alterations, new construction and demolition, including coverage
for those hazards generally known in the insurance industry as exploding,
collapse and underground property damage.
3.10.1.3 Said insurance shall name the City, and its respective officers,
employees, and agents, and shall have a limit of not less than $24,000,000
combined single limit per occurrence for bodily injury, personal injury and
property damage suffered by any person. Said insurance may provide for a
deduction from coverage, which deductible shall not be more than
$1,000,000. Said limits and/or deductible may be adjusted from time to
time. Said insurance may be evidenced by a policy or policies covering
only the Metro System or by endorsement to bring the same within a
blanket policy or policies held by the City covering other properties in
which the City has an interest provided the policy or policies have a
location aggregate provision. The City may satisfy the first $1,000,000 per
occurrence with a self-insurance retention program for public liability
claims. The policy or policies shall name the Participating Agencies as
additional insureds with evidence of same supplied to each. Insurance
premiums, claims payments and claims administration costs shall be
included in the computation of the SSC.
B.10.2 Substantially Equivalent Coverage.
In the event of a transfer of the Metro System to a nonpublic entity pursuant to
Section Article II, coverage substantially equivalent to all the above provisions shall be
maintained by any successor in interest.
XI. INTERRUPTION OF SERVICE
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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 the interruption.
XII. NOTICES REQUIRED UNDER AGREEMENT
The City and each Participating Agency shall give notice when required by this
Agreement. All notices must be in writing and either served personally, or mailed by certified
mail. The notices shall be sent to the officer listed for each party, at the address listed for each
party in Exhibit D in accordance with this SectionArticle. 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 SectionArticle. Upon such notice, as a ministerial matter, the City shall amend Exhibit
D to reflect the changes. The amendment shall be made within thirty (30) days after the change
occurs. The City shall keep an updated version of Exhibit D on file with the City ClerkMetro
JPA. The City shall provide a copy of the amended Exhibit D to all parties.
XIII. EFFECTIVE DATE AND TERMINATIONEXPIRATION
A.13.1 Effective Date.
This Agreement shall be effective thirty (30) days 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. Upon the effective date of this Agreement, the 1998 Agreement shall be of no further
force and effect.[19]
B.13.2 Preferences.
In the event one or more agencies which are subject to Wastewater
Agreementsparties to the 1998 Agreement with the City before the effective date of this
Agreement do not execute this Amended and Restated Agreement, the City agrees not to enter
into any new agreements with said agency or agencies without first offering the Participating
Agencies agreements under substantially the same terms and conditions for any proposed
agreement covering the same subject matter and issues.
C.13.3 TerminationExpiration.
Subject to the rights and obligations set forth in Section XIII.C13.4. below, this
Agreement shall terminate expire on December 31, 2065[20]. 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.
D.13.4 Contract Capacity Rights Survive TerminationExpiration.
The Participating Agencies’ right to obtain wastewater treatment services from
the facilities referred to in, or constructed pursuant to this Agreement shall survive the
termination expiration of the Agreement. Provided however, upon expiration of this Agreement,
the Participating Agencies shall be required to pay their proportional share based on Flow and
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Strength of all Metro System Costs (Capital Improvement Costs and Operation and
Maintenance) to maintain their right to such treatment services. Provided further, that in the
event that the Participating Agencies exercise their rights to treatment upon expiration of this
Agreement, the City shall have the absolute right, without consultation, to manage, operate and
expand the Metro System in its discretion.
E.13.5 Abandonment.
After December 31, 2065, the City may abandon 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 arbitration mediation under the provisions of SectionArticle IX. In the
event of abandonment, the City shall retain ownership of all Metro System assets free of any
claim of the Participating Agencies.
XIV. GENERAL
A.14.1 Exhibits.
1. This Agreement references Exhibits A through G. Each exhibit is attached
to this Agreement, and is incorporated herein by reference. The exhibits are as follows:
Exhibit A Metro Facilities;
Exhibit B Contract Capacities;
Exhibit C Allocation of Operating Reserves and Debt Service
Coverage to Participating Agencies;
Exhibit D Notice Listing;
Exhibit E Map of Reclaimed Water Projects;
Exhibit F Pure Water Cost Allocation and Commodity Rate; and
Exhibit G Metro System Capacity Pool Allocation
B.14.2 Amendment of Agreement.
Except as provided in this Agreement, and recognizing that certain amendments
are ministerial and preapproved, this Agreement may be amended or supplemented only by a
written agreement between the City and the Participating Agencies stating the parties’ intent to
amend or supplement the Agreement.
C.14.3 Construction of Agreement.
1.14.3.1 Drafting of Agreement
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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 any ambiguity should not be construed for or against
the City or any Participating Agency on account of such drafting.
2.14.3.2 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.
3.14.3.3 Agreement Binding on All
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.
4.14.3.4 Severability
14.3.4.1 Should any provision of this Agreement be held invalid or
illegal, such invalidity or illegality shall not invalidate the whole of this
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 this 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.
14.3.4.2 Should a court determine that one or more components of the
allocation of costs set forth in this Agreement places the City or a
Participating Agency in violation of Proposition 218 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
Proposition 218, and use the dispute resolution process in Article IX if an
agreement cannot be reached through direct negotiation.[21]
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5.14.3.5 Choice of Law
This Agreement shall be construed and enforced pursuant to the laws of
the State of California.
6.14.3.6 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.
D.14.4 Declarations Re: Agreement.
1.14.4.1 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.
2.14.4.2 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.
3.14.5 Restrictions on Veto of Transfers and Acquisitions of Capacity
Each party understands and agrees that this Agreement governs its
respective rights and responsibilities with respect to the subject matter hereto and specifically
recognizes that with respect to the transfer and acquisition of Contract Capacity (Section
IV.B4.2) or the creation of New Contract Capacity for any Participating Agency (Section Article
VII), no Participating Agency has a right to veto or prevent the transfer of capacity by and
among other Participating Agencies or with the City, or to veto or prevent the creation or
acquisition capacity for another Participating Agency or Agencies, recognizing that by signing
this Agreement each Participating Agency has expressly preapproved 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 Commission and, where applicable, through exercise of its rights under
the dispute resolution provisions of this Agreement.
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4.14.6 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 without the need to
amend this Agreement, provided that such agreements are consistent with this Agreement.
Nothing in this Agreement or Exhibit F limits or restricts the right of the City or the Participating
Agencies to enter into separate agreements for the purchase or sale of Repurified Water produced
by the Water Repurification System or sharing in City Water Utility PW Costs. Such agreements
shall not affect the cost allocation and commodity rate delineated in Exhibit F.
14.7 Limitation of Claims[22]
Notwithstanding any longer statute of limitations in State law, for
purposes of any claims asserted by the City or a Participating Agency for refunds of
overpayments or collection of undercharges arising under this Agreement, the parties agree that
such refunds or collections shall not accrue for more than four years prior to notice of such claim
is received by the City or a Participating Agency. This also applies to any related adjustments to
each Participating Agency’s share of net Metro System Costs resulting from the resolution of
such claims. The City and the Participating Agencies hereby waive any applicable statute of
limitations available under State law that exceed four years.
5.14.8 Counterparts
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.
EXHIBIT A 60409.00001\30914102.3
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EXHIBIT A
METRO FACILITIES
[INSERT CURRENT VERSION OF EXHIBIT A ON FILE WITH CITY CLERK]
EXHIBIT B 60409.00001\30914102.3
60409.00001\30914102.4
EXHIBIT B
CONTRACT CAPACITIES
[INSERT CURRENT VERSION OF EXHIBIT B ON FILE WITH CITY CLERK, IF
DIFFERENT FROM 1998 VERSION]
EXHIBIT C 60409.00001\30914102.3
60409.00001\30914102.4
EXHIBIT C
ADMINISTRATIVE PROTOCOL ON ALLOCATION OF OPERATING RESERVES
AND DEBT SERVICE COVERAGE TO PARTICIPATING AGENCIES
EXHIBIT D 60409.00001\30914102.3
60409.00001\30914102.4
EXHIBIT D
NOTICE LISTING[23]
City Manager
City of Chula Vista
276 Fourth Avenue
Chula Vista, CA 91919
Phone: 691-5031
Fax: 585-5612
City Manager
City of La Mesa
8130 Allison Avenue
La Mesa, CA 91942
Phone: 667-1101
Fax: 462-7528
City Manager
City of San Diego
202 “C” Street
San Diego, CA 92101
Phone: 236-5949
Fax: 236-6067
City Manager
City of Coronado
1825 Strand Way
Coronado, CA 92113
Phone: 522-7335
Fax: 522-7846
City Manager
City of Lemon Grove
3232 Main Street
Lemon Grove, CA 91945
Phone: 464-6934
Fax: 460-3716
Chief Administrative Officer
County of San Diego
1600 Pacific Highway, Rm. 209
San Diego, CA 92101
Phone: 531-5250
Fax: 557-4060
City Manager
City of Del Mar
1050 Camino Del Mar
Del Mar, CA 92014
Phone: 755-9313 ext. 25
Fax: 755-2794
City Manager
City of National City
1243 National City Blvd.
National City, CA 91950
Phone: 336-4240
Fax: 336-4327
General Manager
Otay Water District
2554 Sweetwater Springs Blvd.
Spring Valley, CA 91977
Phone: 670-2210
Fax: 670-2258
City Manager
City of El Cajon
200 E. Main Street
El Cajon, CA 92020
Phone: 441-1716
Fax: 441-1770
City Manager
City of Poway
13325 Civic Center Drive
Poway, CA 92064
Phone: 679-4200
Fax: 679-4226
General Manager
Padre Dam Municipal Water
District
10887 Woodside Avenue
Santee, CA 92071
Phone: 258-4610
Fax: 258-4794
City Manager
City of Imperial Beach
825 Imperial Beach Blvd.
Imperial Beach, CA 91932
Phone: 423-8300 ext. 7
Fax: 429-9770
EXHIBIT E 60409.00001\30914102.3
60409.00001\30914102.4
EXHIBIT E
MAP OF RECLAIMED WATER PROJECTS
EXHIBIT F 60409.00001\30914102.3
60409.00001\30914102.4
EXHIBIT F
PURE WATER COST ALLOCATION AND COMMODITY RATE
EXHIBIT G 60409.00001\30914102.3
60409.00001\30914102.4
EXHIBIT G
METRO SYSTEM CAPACITY POOL ALLOCATION
EXHIBIT B
Pure Water Program
Water/Wastewater Cost and Revenue Allocation
Agreement Basic Principles
1. Water shall pay for all improvements after secondary treatment (ocean discharge
standard).
2. Water shall pay for all costs for fail-safe disposal to include any cost associated
with reservation of capacity at the PLWTP.
3. Water shall pay for portions of the preliminary treatment, primary treatment and
secondary treatment process that have added costs to deal with increased
treatment needed to accommodate Pure Water.
a) NCWRP Preliminary and Primary Treatment - Wastewater shall pay for
chemically enhanced primary treatment.
b) NCWRP Primary Effluent Equalization - All wastewater cost.
c) NCWRP Aeration - Water shall pay all capital costs for increased volume
of aeration tanks for Pure Water. Wastewater shall pay for the aeration
tank volume required for 52 MGD of capacity based on sizing criteria for
the existing 30 MGD. Water shall also pay for a methanol feed system.
d) NCWRP Secondary Clarifiers - Water shall pay for any demolition and
replacement of existing tanks. Wastewater shall pay the cost to expand
from 30 MGD to 52 MGD.
4. Water shall pay any costs for the demolishing and replacement with similar
facilities of North City facilities needed to make space available.
5. Wastewater shall pay capital, debt, operations and maintenance costs for
wastewater conveyance facilities to provide wastewater for replacement of
centrate flows that cannot be treated at the North City Water Reclamation Plant
(NCWRP) due to Pure Water needs.
6. Water shall pay all costs for brine disposal including pump stations, pipelines,
retreatment, ocean outfall and monitoring.
7. Wastewater shall pay all treatment and conveyance costs for all return flows
(Micro Filtration and tertiary backwash) based on flow, COD and SS.
8. Commodity Charge
a) Water will pay a commodity charge for secondary treated wastewater that
is used for potable reuse.
b) If the total expenses for the wastewater potion of the Pure Water program
to produce 83 MGD of potable reuse exceed the cost to upgrade 180
MDG of treatment to the secondary level at the Point Loma Wastewater
Treatment Plant, then the commodity charge will be modified as
necessary to mitigate costs above this level to the wastewater customer.
Note: 1. These principles are based on the assumption that secondary equivalency
is approved through Federal Legislation
2. Each new wastewater facility after NCWRP may require additional
negotiation based on the actual process selected.
Metro Wastewater JPA ^&K§=2*22fl 276 FourmAvenue Chulavista'CA91950 619-176-2557
www.melroipa.org Jerry Jones,Chair
November 21,2017
VIA I .S.and Electronic Mail
DSDEAS @ sandiego.gov
Mr.Mark Brunette
Senior Environmental Planner
City of San Diego Department Services Center
1222 First Avenue,MS 501
San Diego,CA 92101
Re:Comments on Draft EIR/EIS for the Pure Water San Diego Program,North
City Project—Project No.499621 /SCH No.2106081016
Dear Mr.Brunette:
Metro JPA appreciates the opportunity to comment on the North City Project Draft
EIR/EIS.Metro JPA is a joint powers authority organized pursuant to the California Joint
Exercise of Powers Act,Government Code section 6500 et seq.for the purpose of representing
its member agencies'interests in the operation and management of the San Diego regional sewer
system.Metro JPA's member agencies are the cities of Chula Vista,Coronado, Del Mar,El
Cajon,Imperial Beach,La Mesa,National City,and Poway;the Lemon Grove Sanitation
District;the Padre Dam Municipal Water District and Otay Water District;and the County of
San Diego Sanitation District (collectively,"Member Agencies").
Metro JPA has identified several aspects of the Draft EIR/EIS for the North City Water
Reclamation Plant Project ("DEER")that the City of San Diego ("City")that Metro JPA requests
the City reconsider and/or clarify to provide a complete analysis of the Project's impacts.Metro
JPA's intent in providing these comments is to assist the City with development of a sound
environmental analysis of the proposed project,and ensure that the project is constructed in a
manner that makes the best use of the project's role in the metro system.
The Joint Powers Authority Proactively Addressing Regional Wastewater Issues
Chula Vista •Coronado ■Del Mar • El Cajon •Imperial Beach >La Mesa •Lemon Grove Sanitation District
National City •Otay Water District •Poway •Padre Dam Municipal Water DistrictCountyofSanDiego,representing East Otay,Lakeside/A]pine,Spring Valley &Winter Gardens Sanitation Districts
-1-
COMMENTS
The DEIR needs to assess the impact the North City Water Reclamation Plant Project
will have on offloading of the E.W.Blom Point Loma Wastewater Treatment Plant
The E.W.Blom Point Loma Wastewater Treatment Plant ("Point Loma Plant")operates
pursuant to a modified National Pollution Discharge Elimination System ("NPDES")permit,
which allows the Plant to discharge wastewater treated only to advanced primary standards into
the ocean.The City operates the Point Loma Plant under a waiver from the United States
Environmental Protection Agency ("EPA")issued pursuant to Clean Water Act section 301(h)
and 40 CFR 125,Subpart G.
The DEIR should consider the impacts that offloading the Point Loma Plant will have on
the operation of the Plant and on the sufficiency of the conveyance system leading to the Plant.
In particular,the City should consider whether fail-safe infrastructure at the North City Plant is
adequate to ensure that the Point Loma Plant is permanently offloaded rather than serving as a
back-up.
Metro JPA and its Member Agencies are concerned that the North City Project will be
constructed in a manner that continues to rely on the Point Loma Plant,and that in turn,brings
into question the basis for the Point Loma Plant's Clean Water Act Waiver.Additionally,on
page 2-20,the DEIR states that there is uncertainty whether EPA will continue to grant the Point
Loma Plant Waiver.There is no basis for this statement,especially if the City constructs the
North City Project as agreed.Metro JPA requests that the statement be removed from the DEIR.
The Project should include appropriate failsafe mechanisms to protect the Point Loma
Plant and the Environment
As noted above,Metro JPA is concerned that the project as described in the DEIR does
not adequately protect the Point Loma Plant to ensure that it is permanently offloaded.For
example:
•Section 3.5.2 Page 3-29 of the DEIR states:"In the event the NCPWF is shut
down for any purpose,the Morena Pump Station will also be shut down and go
into a by-pass mode directing flows to the Point Loma WWTP."
•Page 3-32 of the DEIR states:"Power for the Morena Pump Station and MTBS
would be supplied by SDG&E.Backup generators are not anticipated to be
required."
•Page 3-40 of the DEIR states:"The NCPWF is not an essential facility.In the rare
event of simultaneous failure of the power generation facility at NCWRP and
utility power,the majority of NCPWF will be shut down and flow to NCWRP
will be reduced to meet Title 22 flows.Remaining raw sewage will be diverted to
the Point Loma WWTP."
The Joint Powers Authority Proactively Addressing Regional Wastewater Issues
Chula Vista •Coronado •Del Mar • El Cajon •Imperial Beach •La Mesa •Lemon Grove Sanitation District
National City •Otay Water District •Poway •Padre Dam Municipal Water District
County of San Diego,representing East Otay,Lakeside/Alpine,Spring Valley &Winter Gardens Sanitation Districts
-2-
We request that the City define what shutdown of the North City Plant means.We would
prefer to keep the facility running and find another place to use or dispose of the effluent instead
of sending it to Point Loma.Further,we believe that emergency generators should be supplied at
the Morena Pump Station to prevent spills,or unnecessary diversions.Lastly,we believe the
NCPWF is an essential facility and should have emergency power generation.These protections
should be included in the final North City Project and described in the final EIR.
Location ofdischarge of non-spec water
Pages 3-42 through 3-43 of the DEIR describe three options for managing flows in the
event that the North City Plant produced non-spec water.Options A and B would send
emergency flows into the North City Pipeline.Option C would allow flows to be discharged to
local stormdrains and/or Carrol Canyon.Metro JPA requests that the City pursue Option C for
management of these flows.Because the North City Plant is producing potable water,it is
possible that the City could obtain cover under "General Waste Discharge Requirements for
Discharges from Drinking Water Systems to Surface Waters (SWRCB Order No.2014-0194-
DWQ,NPDES No.CAG140001)for these discharges.
Option C would not require the flow to be retreated at Point Loma.This would save
operation costs and reduce redundant treatment needs.Expanding the use of Option C for the
entire flow to the AWPF would be the best option to reduce future costs.Since the water would
be near distilled water quality and this discharge would happen very rarely the impacts would be
minimal.If the volume of discharge was an issue multiple discharge points could be considered.
The DEIR should clarify the volume of water that the North City Plant will add to the
region's water supplyportfolio,and the corresponding demand
Pages 3-45 and 5.17-2 of the DEIR describe the overall contribution the North City
Project will have on the region's water supply portfolio between 2016 and 2035.We request that
the City clarify in the DEIR that the 93,000 acre-feet per year that will be created by the Pure
Water Project (including the North City Project)represents 20%of the current water use in the
San Diego County Water Authority.
The DEIR should discuss the original 15 MGD project and consider the IS MGD
project as an Alternative
As part of the waiver renewal process,the City entered into an agreement with certain
non-governmental environmental organizations that requires the City to build a 15 MGD
recycled water project by December 31,2023.In exchange,the environmental organizations
agreed not to challenge the EPA waiver renewal for the Point Loma Plant.The City
subsequently elected to incorporate a 30 MGD reuse project,with an accelerated compliance
plan,in place of the 15 MGD recycled water project.
The Joint Powers Authority Proactively Addressing Regional Wastewater Issues
Chula Vista •Coronado ■Del Mar ■ El Cajon •Imperial Beach •La Mesa •Lemon Grove Sanitation District
National City •Otay Water District •Poway •Padre Dam Municipal Water District
County of San Diego,representing East Otay,Lakeside/Alpine.Spring Valley &Winter Gardens Sanitation Districts
The DEIR does not include a discussion of the original 15 MGD water project in its
history of project changes or as a project alternative.The 15 MGD project analysis is relevant to
an adequate assessment of the scale of impacts the North City Project because the expansion has
implications for flow volumes in the remainder of the system.The larger 30 MGD project could
therefore have an impact on the operational and regulatory obligations which the Plant must
meet.
The DEIR does not adequately assess the relationship between the modified permit for
the Point Loma Wastewater Treatment Plant and the Proposed Project
The DEIR does not adequately assess the relationship between the modified NPDES
permit for the Plant and the projected impact of the North City Project on the Plant's ability to
meet applicable modified permit conditions.Specifically,the DEIR should address the Plant's
ability to achieve Secondary Equivalency at the Point Loma Plant and the impact the North City
Project might have on that ability.
On May 15,2014,the City adopted Resolution 308906,"A Resolution of the Council of
the City of San Diego Supporting the 'Pure Water San Diego Program"1.The Resolution
memorialized the City's commitment to potable reuse via the Pure Water Program and to
obtaining Secondary Equivalency at the Point Loma Plant.
The Resolution memorializes the City Council's direction that the Pure Water Program
be implemented in a manner that "secures long-term compliance with discharge standards at the
Point Loma Wastewater Treatment Plant through potable reuse and secondary equivalency."The
Resolution directs City staff to develop a legislative strategy to authorize secondary equivalency
under the Clean Water Act,and importantly for Metro JPA and its member agencies,establish a
financing plan and cost-sharing principles with other public agencies that use the City's
wastewater system.
The DEIR currently lacks a sufficient assessment of applicable regulatory requirements
which are related to the Point Loma Plant or are implicated by,or dependent on,the Pure Water
Program and North City Project.Without a full and detailed analysis of the Plant's NPDES
permit and relationship to the North City Project (including Project Alternatives),the DEIR
creates the appearance that the expanded,30 MGD project is necessary for the Point Loma Plant
to meet the modified permit terms.The Metro JPA member agencies are concerned about this
aspect of the DEIR because they have not yet agreed to help fund the larger project.
Accordingly,the DEIR must provide a detailed and accurate relationship between the modified
permit under which the Plant operates and the North City Project.
Lastly,the DEIR should include a discussion of the City's plan to obtain a permanent
waiver for Point Loma based on the Secondary Equivalency concept and completion of the North
City Project.The only reason wastewater ratepayers can be required to help fund the North City
project,and the Pure Water Project in general is if there is a nexus between the project and
The Joint Powers Authority Proactively Addressing Regional Wastewater Issues
Criula Vista •Coronado •Del Mar • El Cajon •Imperial Baach •La Mesa •Lemon Grove Sanitation District
National City •Otay Water District •Poway •Padre Dam Municipal Water District
County of San Diego,representing East Otay,Lakeside/Alpine,Spring Valley &Winter Gardens Sanitation Districts
compliance at the Point Loma Plant.Metro JPA will not help fund a water supply project if
there is still a risk that they may have to upgrade the Point Loma Plant in the future.
The DEIR should provide a detailed discussion of the dilution impacts and ratios
affecting Miramar and San Vicente Reservoirs
The dilution effects of purified water releases under the DEIR's reservoir operating
scenarios are inadequate for Metro JPA and its Member Agencies to fully understand and assess
the impacts of the North City Project.For instance,the DEIR fails to provide detailed
information with respect to the Miramar and San Vicente Reservoirs,including the manner in
which reservoir size and volume will impact dilution of constituents in the recycled water to be
stored there or the existing imported water already stored in the reservoir.
Dilution factors used to assess the impacts of purified water introduced into the reservoirs
may change over time.This dynamic does not appear to be considered at all.The EIR
references a model produced to consider these issues,but the model is not included as an
appendix,and the discussion of its findings is extremely limited.Without this information it is
not possible for Metro JPA or its Member Agencies to fully understand the impact of the North
City Project.To provide a complete analysis of the North City Project and its potential impacts,
the DEIR must include a more detailed discussion of purified water impacts on dilution within
the reservoirs.
The DEIR does not address relevant legislation that could have a significant impact on
wastewaterproduction and use
The DEIR does not consider recently enacted green building requirements for the
conversion of multifamily buildings by 2019,as well as all residential units when sold.This
legislation could have a significant impact on the production and use of wastewater.Substantial
declines in wastewater production and use call into question the viability of the North City
Project at its current scale.Accordingly,it is difficult to properly consider the impact the Project
will have without any information about relevant regulatory changes that will directly affect the
production and use of wastewater.
The DEIR does not assess the effects of seasonal flows to the North City Plant and
corresponding demandfor recycled water
The DEIR does not adequately account for seasonal flow variations of non-potable
recycled water in any detail.Page 6.17-2 mentions a seasonal strategy in passing but the overall
project should be analyzed in terms of seasonal need and demand.Without this information,
Metro JPA and its Member Agencies cannot adequately assess how well North City Project will
offload the Point Loma Plant or whether the North City Plant will over-produce recycled water.
The DEIR should supply information related to the effect of seasonal flows as well as any
anticipated swings this strategy is likely to create with regard to seasonal flows that may impact
North City Project facility operations.
The Joint Powers Authority Proactively Addressing Regional Wastewater Issues
Ctiula Vista •Coronado •Del Mar • El Cajon •Imperial Reach •La Mesa •Lemon Grove Sanitation District
National City •Otay Water District •Poway •Padre Dam Municipal Water District
County of San Oiego,representing East Otay,Lakeside/Alpine,Spring Valley &Winter Gardens Sanitation Districts
The DEIR should specify the roles and charges ofresearchers staffed at the anticipated
Operating &Maintenance Facility
The North City Project would require 60 new fulltime employees to operate the project,
including 15 new fulltime employees at the North City Water Reclamation Plant ("NCWRF')
and 45 at the NCPWF.Of those 45 employees at the NCPWF,the DEIR indicates that 12 would
be "researchers."However,the DEIR provides no definition of researchers or indicates what
roles and responsibilities such employees will have,other than that they are generally required
for operation of the NCPWF.
Without further detail,it is impossible for Metro JPA and its Member Agencies to
adequately understand how the North City Project facilities will operate,and thus cannot
sufficiently assess whether costs associated with these positions are appropriately attributed to
water or wastewater operations.Metro JPA requests that the City clarify the roles of all
employees working on the completed North City Project and whether their roles are related to
wastewater treatment or water supply.
Project Size Description
In various places,the DEIR describes the North City Project as 34 MGD,42.5 MGD,and
90 MGD.The DEIR is not consistent and needs improved explanation of the project size.The
DEIR needs to explain the project size and why that size is necessary to achieve the 34 MGD
goal of the project.
Non-Spec Water Corrective Action Report
On page 2-18 Part 1 of the DEIR cites applicable California regulations that impose
requirements on recycled water projects.In particular,22 CCR Division 4,Chapter 3,Articles
5.1 and 5.2,require the water agency (or agencies)proposing a recycled water project to submit
a joint plan to the SWRCB and RWQCB outlining corrective actions to be taken in the event that
a delivery of recycled wastewater to an augmented reservoir fails to meet required water quality
criteria.Metro JPA requests a copy of this report if it has been completed.
Other clerical and technical errors
The DEIR must be revised to accurately identify critical data points required to assess the
impacts of the Project.Without such accurate information,any impact determination is rendered
speculative.For instance,discrepancies in data figures appear to exist in the following places:
•AADF into Pump Station 2 is 180 MGD (Page 2-9),while AAFD to the Plant is 141
MGD (Page 2-7);
•On Page 3-8,the DEIR indicates that the maximum production of the North City Plant
will be 34 MGD,while elsewhere the DEIR indicates the figure is 30 MGD;
The Joint Powers Authority Proactively Addressing Regional Wastewater Issues
Chula Vista •Coronado •Del Mar • El Cajon •Imperial Beach •La Mesa •Lemon Grove Sanitation District
National City •Otay Water District ■Poway •Padre Dam Municipal Water District
County of San Diego,representing East Otay,Lakeside/Alpine,Spring Valley &Winter Gardens Sanitation Districts
•For the pipeline to Miramar,the DEIR indicates daily flow will be between 23 MGD and
33MGD(i.e.not 34 MGD);
•Annual flow rates on Page 5.11-24 do not appear to match current flows at the Plant,
particularly when 30 MGD are moving away from the Plant;the figures should therefore
reflect flows which will likely result if the Project is not completed;and
• Projected project increases in potable water demand of 3 MGD on Page 3-49 are
substantially lower that projected demand of 4.8 MGD inferred from the figures on Page
5.17-5 (i.e.8,195 AFY to 13,650 AFY by 2020.)
CONCLUSION
As noted above,Metro JPA intends these comments to be helpful in the overall
evaluation of the North City Project.Metro JPA and its Member Agencies are concerned about
the efficient use of resources and the value that the North City Plant brings in terms of regulatory
compliance and water supply.Metro JPA believes that the project should maximize both and
submits these comments in furtherance of that goal.
The DEIR presents a daunting array of complex issues.Metro JPA and its Member
Agencies understand that arriving at appropriate and supportable findings and conclusions is an
iterative process.Metro JPA therefore appreciates the opportunity to participate in that process
by proposing the above comments.
IC.P.deSousa
J.G.Andre Monette
Best Best &Krieger LLP
General Counsel,Metro Wastewater JPA
6040y.OUO0l\30262881.3
The Joint Powers Authority Proactively Addressing Regional Wastewater Issues
Chula Vista ■Coronadu ■Del Mar • El Cajon ■Imperial Beach •La Mesa •Lemon Grove Sanitation District
National City •Otay Water District •Poway ■Padre Dam Municipal Water DistrictCountyofSanDiego,representing East Otay,Lakeside/Alpine,Spring Vafley &Winter Gardens Sanitation Districts
-7-
EXHIBIT E
Jerrold L Jones
Chair, Metro Wastewater JPA/Commission
3232 Main Street
Lemon Grove, CA 91945
May 20,2018
The Honorable Mayor Kevin Faulconer
202 C Street, 11th Floor
San Diego, CA 92101
Mayor Faulconer,
As financial partners of the City, Metro JPA's twelve member agencies support Pure Water and its
significant environmental and sustainability benefits for the region.
The 1998 Regional Wastewater Disposal Agreement between the City of San Diego and the Metro JPA
members did not anticipate the complexity of the Pure Water project and must be updated prior to San
Diego City Council's authorization of the $1.4B in Pure Water construction contracts.
The updated/amended Disposal Agreement should define cost allocation for water and wastewater
facilities prior to building these facilities. All plans and impacts moving forward must be clear to all
stakeholders, including JPA wastewater ratepayers as well as San Diego's own wastewater ratepayers.
Public Utilities staff and the City Attorney's Office have already been working for months with Metro
JPA representatives on agreeable terms. While acceptable progress has been made, we are concerned
that that a secured agreement within the City's aggressive timeline to bid construction contracts may be
difficult if not impossible.
JPA representatives would like to meet with you and your staff to discuss:
The importance of an updated disposal agreement and mechanism's or instruments that will
address securing an updated agreement while maintaining the City's Pure Water timeline.
Mitigation of future costs through value engineering and planning in the event that federal
legislation authorizing secondary equivalency cannot be secured. Even with secured secondary
equivalency it is important to insure that we are not missing cost savings and design
opportunities in Phase 1 by looking ahead to Phase 2. We are concerned that some North
County agencies using the San Elijo and Encina plants are currently paying less for full
secondary treatment than agencies using the advanced primary treatment of the Metro system,
even before the costs of Pure Water are added. With or without secondary equivalency, JPA
engineers believe that there are sound engineering options for a capacity and facility downsize
of Point Loma that are more economically sound and environmentally responsible than
maintaining current facility size, costs and capacity. JPA staff are currently working with City
staff on a study to explore this. We believe it is vital that we share progress and our thoughts on
this collaboration with you and your staff so that your input can be included early in this
process.
Jerry Jones
Metro Wastewater JPA/Commission Chair