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HomeMy WebLinkAbout2026/09/01 Post Agenda Packet Date:Tuesday, September 1, 2026, 5:00 p.m. Location:Council Chambers, 276 Fourth Avenue, Chula Vista, CA REGULAR CITY COUNCIL MEETING Watch live in English and Spanish: chulavistaca.gov/councilmeetings or Cox Ch. 24 (English only). Free Spanish interpretation is available on-site. _______________________________________________________________________________________ Watch the Meeting. City Council meetings may be viewed live or recorded in English or Spanish at chulavistaca.gov/councilmeetings. To view in Spanish, click "ES" at the bottom of the webpage. Closed captioning is available in both languages. Register to Speak In Person or Remotely. Register to speak in person or remotely at https://publiccomment.chulavistaca.gov starting at 8:00 a.m. on Monday before the meeting. In-person speakers may also register at the meeting. Remote speakers must register using the same phone number they will use to call into the meeting; this phone number is used to identify and call on remote speakers during the meeting. Remote participants may call (619) 679-9952 to listen to the meeting and/or await their opportunity to speak. Requests to speak must be submitted before the close of the public comment period for the applicable agenda item or before the close of the general public comment period for non-agenda items. Written Comments. Written comments may be submitted online at chulavistaca.gov/councilmeetings. Written comments may also be submitted by email to cityclerk@chulavistaca.gov. Written comments must be received no later than 12:00 p.m. on the day of a regular meeting or three hours before the start of a special meeting. Time Allotted for Speaking. Speaker time is subject to change by the Presiding Officer or City Council. Individuals using interpretation services will be allotted twice the time otherwise provided. - Consent Calendar, including one or more items: 3 minutes - Agenda Items not on the Consent Calendar: 3 minutes - General Public Comment for matters not on the agenda: 3 minutes General Public Comment. The first seven registered speakers will be heard during the first general public comment period. If additional speakers are registered, they will be heard during the continued general public comment period. If all registered speakers address the City Council during the first general public comment period, there will be no continued period. Agenda Packet and Meeting Materials. The agenda packet, including staff reports, draft resolutions and ordinances, and other backup materials, is available at chulavistaca.gov/councilmeetings and at the City Clerk's Office. Accessibility, Translation, and Interpretation Assistance. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office at cityclerk@chulavistaca.gov or (619) 691-5041. In accordance with applicable state law, the City will also provide reasonable assistance to members of the public who wish to translate the meeting into another language or receive interpretation provided by another member of the public. Providing at least 48 hours' notice will help ensure that reasonable arrangements can be made. Gov. Code § 84308 Regulations. Government Code section 84308 is intended to promote transparency and fairness in governmental decision-making by limiting certain campaign contributions involving proceedings for a "license, permit, or other entitlement for use," as defined in the Political Reform Act. For agenda items subject to these regulations, parties to the proceeding must disclose any campaign contribution over $500, aggregated, made within the preceding 12 months by the party, their agent, or others whose contributions must be aggregated under Government Code section 82015.5. The disclosure must identify the contributor and the amount contributed. An agenda notation stating "G.C. § 84308 Regulations Apply: Yes" means the item is subject to these regulations. Pages 1.CALL TO ORDER 2.ROLL CALL 3.PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE 4.SPECIAL ORDERS OF THE DAY 4.1 Oaths of Office for the Cultural Arts Commission: Lisa Brannen, Cultural Arts Commission• City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 2 of 628 5.CONSENT CALENDAR (Items 5.1 through 5.3) Consent calendar items are considered together and acted upon by one motion. There is no separate discussion of these items unless the Mayor or a City Councilmember removes the item from the consent calendar. Items removed from the consent calendar will be heard as action items. RECOMMENDED ACTION: City Council approve the recommended action on the below consent calendar items. 5.1 Waive Reading of Text of Resolutions and Ordinances RECOMMENDED ACTION: Approve a motion to read only the title and waive the reading of the text of all resolutions and ordinances at this meeting. 5.2 Wastewater Disposal Agreement: Approval of the Revised “Second Amended and Restated Regional Wastewater Disposal Agreement” (SARA) 8 Report Number: 26-0246 Location: No specific geographic location Department: Engineering & Capital Projects G.C. § 84308 Regulations Apply: No Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the State California Environmental Quality Act (CEQA) Guidelines. Therefore, pursuant to State CEQA Guidelines Section 15060(c)(3), no environmental review is required. RECOMMENDED ACTION: Adopt a resolution approving the revised version of the Second Amended and Restated Regional Wastewater Disposal Agreement (SARA). 5.3 Grant Acceptance and Appropriation: Accept $97,589 from the Department of Alcoholic Beverage Control and Amend the Fiscal Year 2026-27 Adopted Budget by Appropriating the Grant Funds 248 Report Number: 26-0273 Location: No specific geographic location Department: Police G.C. § 84308 Regulations Apply: No Environmental Notice: The activity is not a “Project” as defined under section 15378 of the California Environmental Quality Act (“CEQA”) State Guidelines. Therefore, pursuant to State Guidelines section 15060(c)(3) no environmental review is required. City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 3 of 628 RECOMMENDED ACTION: Adopt a resolution approving an agreement and accepting $97,589 in grant funds from the Department of Alcoholic Beverage Control to be used for the Alcohol Policing Partnership Program and amending the Fiscal Year 2026-27 budget to appropriate funds to the Police Grants Section of the State Grants Fund for the Alcohol Policing Partnership Program. (4/5 Vote Required) 6.PUBLIC COMMENTS 265 Twenty-one minutes are scheduled for the public to address the City Council for three minutes each on any matter within the jurisdiction of the City Council that is not on the agenda. The remaining speakers, if any, will be heard during the continued Public Comment period. 7.ACTION ITEMS 7.1 Consider Items Removed From the Consent Calendar, if Any Consider items removed from the consent calendar by the Mayor or a City Councilmember, if any. If no items were removed from the consent calendar, this item will be withdrawn. 7.2 Community Benefit District: Preliminary Approval of the Final Assessment Engineer’s Report; Expressing Intention to Establish the Downtown Chula Vista Community Benefit District for Twenty Years; and Setting the Public Hearing on Such Establishment 274 Report Number: 26-0227 Location: Approximately twenty-seven (27) square blocks consisting of two hundred fifty-three (253) parcels on or near the historic Third Avenue business corridor, generally bounded by E Street to the north, including properties on both the north and south sides of E Street, and I Street to the south, including properties on the north side of I Street only. The eastern and western boundaries vary along the corridor and generally follow the predominantly commercial and governmental parcels located on either side of Third Avenue. The area also includes properties along H Street between Third Avenue and Fifth Avenue. Department: Economic Development G.C. § 84308 Regulations Apply: No Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the State California Environmental Quality Act (CEQA) Guidelines. Therefore, pursuant to State CEQA Guidelines Section 15060(c)(3), no environmental review is required. RECOMMENDED ACTION: Adopt a resolution preliminarily approving the final Assessment Engineer’s Report, expressing the intention to establish the Downtown Chula Vista Community Benefit District for a period of twenty (20) years, setting the public hearing on such establishment, and authorizing the City Manager to vote in favor of establishing the district for all parcels within the district boundaries owned by the City. City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 4 of 628 7.3 Agreement: Approve an Encampment Delegated Maintenance Agreement with California Department of Transportation (“Caltrans”) for Encampment Removal Activities Along Interstate 5 from Main Street to E Street 443 Report Number: 26-0208 Location: Interstate 5 from Main Street to E Street (Post Miles: 5.4 to 8.6) Department: Housing and Homeless Services, Police, and Public Works G.C. § 84308 Regulations Apply: No Environmental Notice: The project qualifies for a Categorical Exemption pursuant to California Environmental Quality Act (“CEQA”) Guidelines Section 15301 Class 1 (Existing Facilities), which categorically exempts maintenance activities such as the removal of litter and debris. RECOMMENDED ACTION: Adopt a resolution authorizing the City Manager to enter into an Encampment Delegated Maintenance Agreement for a reimbursable amount in fiscal year 2026-27 of up to $200,000 and appropriate funds therefor. (4/5 Vote Required) 7.4 Grant Acceptance and Agreements: Accept a Grant and Approve an Agreement with the California Board of State and Community Corrections, Approve Agreements with SBCS Corporation and SANDAG for the Proposition 64 Grant Program, and Appropriate Funds 469 Report Number: 26-0276 Location: No specific geographic location Department: Police G.C. § 84308 Regulations Apply: No Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act (“CEQA”) State Guidelines. Therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. RECOMMENDED ACTION: Adopt the following resolutions: Accepting $3,207,603 in grant funds from the California Board of State and Community Corrections for the Proposition 64 Public Health and Safety Grant Program and appropriating $855,238 to the fiscal year 2026-27 Police Grants Section of the State Grants Fund (4/5 Vote Required) A. Approving Agreement Number BSCC 1430-26 with the Board of State Community Corrections for the Proposition 64 Public Health and Safety Grant Program B. Approving agreements with SBCS Corporation and SANDAG for the Proposition 64 Public Health and Safety Grant Program C. City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 5 of 628 8.PUBLIC COMMENTS (CONTINUED) There will be no continued Public Comment period if all speakers present at the first Public Comment period are heard. 9.CITY MANAGER’S REPORTS 10.MAYOR’S REPORTS 11.COUNCILMEMBERS’ REPORTS 11.1 Councilmember Preciado: Ratify Appointments to Boards, Commissions, Committees 587 Matt Yagyagan, Parks and Recreation Commission• Location: No specific geographic location G.C. § 84308 Regulations Apply: No Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act (CEQA) State Guidelines. Therefore, pursuant to CEQA Guidelines Section 15060(c)(3), no environmental review is required. RECOMMENDED ACTION: Ratify the appointments as appropriate. 11.2 Deputy Mayor Fernandez: Ratify Appointments to Boards, Commissions, Committees 594 Dr. Vernon Moore, Charter Review Commission• Aldo Brambila, Measure A Citizens' Oversight Committee• Marianna Garcia Diaz, Sustainability Commission• John Rodgers, Traffic Safety Commission• Chad Jones, Veterans Advisory Commission• Location: No specific geographic location G.C. § 84308 Regulations Apply: No Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act (CEQA) State Guidelines. Therefore, pursuant to CEQA Guidelines Section 15060(c)(3), no environmental review is required. RECOMMENDED ACTION: Ratify the appointments as appropriate. 12.CITY CLERK'S REPORTS 13.CITY ATTORNEY'S REPORTS City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 6 of 628 14.ADJOURNMENT to the regular City Council meeting on September 22, 2026, at 5:00 p.m. in the Council Chambers. Materials provided to the City Council related to an open session item on this agenda are available for public review, please contact the Office of the City Clerk at cityclerk@chulavistaca.gov or (619) 691-5041. We encourage community participation - sign up at www.chulavistaca.gov to receive email notifications when City Council agendas are published online. City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 7 of 628 v . 0 0 5 P a g e | 1 September 1, 2026 ITEM TITLE Wastewater Disposal Agreement: Approval of the Revised “Second Amended and Restated Regional Wastewater Disposal Agreement” (SARA) Report Number: 26-0246 Location: No specific geographic location Department: Engineering & Capital Projects G.C. § 84308 Regulations Apply: No Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the State California Environmental Quality Act (CEQA) Guidelines. Therefore, pursuant to State CEQA Guidelines Section 15060(c)(3), no environmental review is required. Recommended Action Adopt a resolution approving the revised version of the Second Amended and Restated Regional Wastewater Disposal Agreement (SARA). SUMMARY On January 20, 2026, the Chula Vista City Council approved the original version of the SARA through Resolution No. 2026-009. Following Council approval, unforeseen comments from a Participating Agency prevented the agreement from being fully executed. In response, the Metro JPA (Joint Powers Authority) revised the SARA to address all identified concerns. Staff therefore recommend approval of the revised SARA, dated June 12, 2026. ENVIRONMENTAL REVIEW The proposed activity has been reviewed for compliance with the California Environmental Quality Act (CEQA), and it has been determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Page 8 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda P a g e | 2 BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not applicable DISCUSSION On October 23, 2025, the original version of the SARA was approved by the Metro JPA (Attachment 1), initiating the approval process by the Participating Agencies. On January 20, 2026, the City of Chula Vista approved the original version of the SARA via Resolution No. 2026-009 (Attachment 2). Participating Agencies (PA), with the exception Padre Dam Municipal Water District, also approved the original version of the SARA. Since all PAs need to approve the revised SARA prior to implementation, the agreement has not yet gone into effect. To address all Participating Agency (PA) concerns, the Metro JPA Executive Team, in collaboration with staff and legal counsel from the City of San Diego and Padre Dam Municipal Water District (MWD), worked diligently to negotiate and prepare a revised version of the SARA. The revised agreement was developed to address the concerns of the City of San Diego, Padre Dam MWD, and the Metro Pure Water SARA Ad Hoc Committee. These collaborative efforts resulted in a mutually acceptable draft, which is being presented for consideration at today's meeting. The revised SARA, including all exhibits, is included as Attachment 3 to the agenda packet. The key revisions to SARA include: (1) Addition of Section 2.5.6 to address residuals flow. (2) Revision to Section 5.2, to include an illustrative example calculation of the FAB (Functional Allocated Billing) methodology, per Exhibit J. (3) Revision to Section 14.1 to provide that the SARA shall have an effective date of July 1, 2026, regardless of the date on which the final Participating Agency approves and executes the revised SARA. Although the revised SARA will not become operative until it has been approved and executed by all required parties, upon such final approval and execution, its effective date shall be deemed retroactive to July 1, 2026, for all purposes, including billing and cost allocation purposes. (4) Revision to Section 15.1.5 to change the required voting threshold from two-thirds (2/3) to three-fourths (3/4) for approval of changes affecting billing under the FAB methodology. To incorporate the foregoing revisions and to comprehensively and equitably address the allocation of costs, revenues, and billing obligations associated with the Pure Water Program, including the constructi on, expansion, and/or modification of Metro System facilities beyond Phase 1, the City of San Diego and the Participating Agencies, including the City of Chula Vista, desire to approve and adopt the SARA in the form presented herein. The background and technical discussion regarding SARA are contained in the staff report presented to City Council on January 20, 2026 (Attachment 4). The revised SARA recommended for approval this evening is provided as Attachment 3. DECISION-MAKER CONFLICT Staff has reviewed Councilmembers’ property holdings and has determined that the effect of the decision contemplated by this action on public officials’ interest in real property would also affect 10% or more of all Page 9 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda P a g e | 3 property owners in the public officials’ jurisdiction, or 5,000 property owners in the jurisdiction of the officials’ agency, in substantially the same manner. Therefore, pursuant to California Code of Regulations (§18707, §18707.1), the Public Generally Exception applies. CURRENT-YEAR FISCAL IMPACT The City’s sewer enterprise fund is self-supporting and funds the operations, maintenance, repair, rehabilitation and expansion of the system, and treatment. There is no fiscal impact as a result of this action. Funding is available based on current-year budget appropriations. The utility is primarily supported by user fees, which provide a sustainable annual funding source. The current rate plan generates sufficient revenue to fund the financial obligations for wastewater service and equitably recover costs from customers. The current rate plan expired on June 30, 2026, and will be updated to incorporate the pro-rata share of the Pure Water Program costs as determined by the Metro JPA. ONGOING FISCAL IMPACT The five-year financial plan adopted by the City Council for the period of fiscal year 2021-22 through fiscal year 2025-26 was developed using a robust and dynamic cash flow model that mirrors the utility’s accounting and operations. The model contemplated potential changes in operating costs, including increases in treatment costs associated with the upgrade of City of San Diego’s Point Loma Wastewater Treatment Plant (PLWTP). The Engineering & Capital Projects Department is currently administering an updated sewer rate report that will be completed in time to support the adoption of the new sewer rate by the July 1, 2027 deadline. These expenses will be considered as part of the annual budget development process in future years. ATTACHMENTS 1. Original SARA, dated January 20, 2026 2. City Council Resolution No. 2026-009 3. Proposed Revised Second Amended and Restated Regional Wastewater Disposal Agreement 4. Original SARA Staff Report dated January 20, 2026 Staff Contact: Luis Schaar, Director of Engineering and Capital Projects/City Engineer Patrick Moneda, Principal Civil Engineer Michael Benoza, Senior Civil Engineer Page 10 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Form Rev 9/30/2025 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE REVISED SECOND AMENDED AND RESTATED WASTEWATER DISPOSAL AGREEMENT, DIRECTING THE METRO JPA REPRESENTATIVE TO SUPPORT THE SAME AT METRO JPA MEETINGS, AND AUTHORIZING MAYOR TO EXECUTE SAME WHEREAS, the City of Chula Vista passed, adopted and approved the original version of Second Amended & Restated Wastewater Disposal Agreement (the “SARA”), per Resolution No. 2026-009 on January 20, 2026, to address the costs and revenues associated with Phase 1 of the Pure Water Program, and WHEREAS, since October 23, 2025, the City of San Diego and all Participating Agencies, except for Padre Dam Municipal Water District, approved the original version of the SARA; and WHEREAS, the Metro JPA Executive Team, together with staff and legal counsel from the City of San Diego and Padre Dam MWD, have worked diligently to negotiate and draft a revised version of SARA that would be acceptable to the City of San Diego, Padre Dam MWD, and the Metro Pure Water (SARA) Ad Hoc Committee (Exhibit 1); and WHEREAS, the negotiators were able to successfully agree to the revised draft of the SARA that is being presented at today’s meeting; and WHEREAS, a final draft with exhibits is attached to today’s agenda packet, and WHEREAS, the key revisions to SARA include: (1) addition of Section 2.5.6 to address residuals flow, (2) revision to Section 5.2, to include an illustrative example calculation of the FAB methodology, per Exhibit J, (3) revision to Section 14.1 to have an effective date of July 1, 2026, irrespective of when the last party signs the revised SARA, this means that the SARA will not be effective until the last party approves and signs the agreement, but once the last party signs, the effective date of the SARA for all intents and purposes, including billing purposes, will be retroactive to July 1, 2026; (4) revision to Section 15.1.5, a change from a two-thirds voting threshold to a three-fourths voting threshold with respect to billing-related changes (changes to the Functional Allocated Billing (FAB) methodology); and Page 11 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Resolution No. Page 2 WHEREAS, in an effort to present the revisions above, and comprehensively and equitably address the costs, revenues, and billing system associated with the Pure Water Program and the related construction, expansion, and/or modification of Metro System facilities beyond Phase 1, the City of San Diego and Participating Agencies, including the City of Chula Vista wish to amend and restate the SARA as provided herein. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it approves the Second Amended and Restated Regional Wastewater Disposal Agreement between the City of San Diego and the Participating Agencies, in the form presented, with such modifications as may be required or approved by the City Attorney, a copy of which shall be kept on file in the Office of the City Clerk, and authorizes and directs the Mayor to execute the same. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it authorizes and directs the Metro JPA representative to support the Second Amended and Restated Regional Wastewater Disposal Agreement at Metro JPA meetings. Presented by Approved as to form by Luis Schaar, PE Marco A. Verdugo Director of Engineering & Capital Projects/ City Attorney City Engineer Page 12 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda SECOND AMENDED AND RESTATED REGIONAL WASTEWATER DISPOSAL AGREEMENT BETWEEN THE CITY OF SAN DIEGO AN THE PARTICIPATING AGENCIES IN THE METROPOLITAN SEWERAGE SYSTEM 10-23-25 4907-3419-6844 ACN 2026-038 Page 13 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda TABLE OF CONTENTS Page I. DEFINITIONS....................................................................................................................3 2. OWNERSHIP AND OPERATION OF THE METRO SYSTEM......................................9 2.1 Rights of the Parties.................................................................................................9 2.2 Metro System Services............................................................................................9 2.3 Flow Commitment.................................................................................................10 2.4 Funding Obligations..............................................................................................10 2.5 Limitations on Types and Condition of Wastewater .............................................1111 2.6 Enforcement Actions..........................................................................................11 2.7 Right of First Refusal ...................................... . 13 2.8 Uniform Enforcement of Pretreatment Program by City......................................14 2.9 Wastewater Generated at Military Bases...............................................................16 3. CAPACITY RIGHTS........................................................................................................16 3.1 Contract Capacity..................................................................................................16 3.2 Inter -Agency Transfers of Contract Capacity ........................................................16 3.3 New Contract Capacity..........................................................................................17 3.4 Reductions in Metro System Capacity..................................................................18 3.5 Restrictions on Veto of Transfers and Acquisitions of Capacity ..........................18 3.6 Amendments to Exhibits B....................................................................................18 3.7 The South Bay Ocean Outfall................................................................................18 4. FINANCE, BUDGETING, AND ACCOUNTING: PAYMENT AND MONITORING PROVISIONS....................................................................................................................18 4.1 Payment for Metro System Facilities....................................................................18 4.2 Payment for Additional Metro System Facilities..................................................19 4.3 Payment for Operation and Maintenance..............................................................19 4.4 Charges Based on Flow, Strength and Fixed Capacity: Exception ....................... 1 9 4.5 Monitoring Flow and Strength ............................21 5. FINANCE, BUDGETING, AND ACCOUNTING: SYSTEM OF CHARGES 5.1 Charges Authorized................................................................................ 5.2 Functional Allocated Billing (FAB) ....................................................... 5.3 Metro System Costs................................................................................ 5.4 Excluded Costs....................................................................................... 5.5 Metro System Revenues and Allocations............................................... 5.6 Excluded Revenue.................................................................................. 5.7 Estimate and Billing Schedule and Year End Adjustment ..................... 5.8 Financial Statements............................................................................... 5.9 Debt Financing......................................................................................-. 5.10 Allocation of Operating Reserves and Debt Service Coverage.............. 5.11 Amending the System of Charges.......................................................... 22 22 22 23 23 23 24 24 25 25 26 26 10-23-25 4907-3419-6844 Page 14 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 6. FINANCE, BUDGETING, AND ACCOUNTING: PURE WATER PROGRAM COST ALLOCATION AND REVENUES — PHASE 1..............................................................26 6.1 North City Water Reclamation Plant Modification...............................................26 6.2 New, Expanded or Modified Metro System Facilities..........................................26 6.3 Costs Excluded from Metro System Costs — Phase I............................................26 6.4 North City Water Reclamation Plant Improvement Costs Included as Metro SystemCosts..........................................................................................................27 6.5 Reallocation of PWP Costs incurred since FY 2014 .............................................27 6.6 Revenue Sharing for Repurified Water.................................................................28 6.7 Capital Expense Rate.............................................................................................30 6.8 Amending Pure Water Program Cost Allocation and Revenues — Phase 1...........32 7. FINANCE, BUDGETING, AND ACCOUNTING: PURE WATER PROGRAM COST ALLOCATION AND REVENUES — PHASE 2..............................................................32 7.1 Pure Water Program — Phase 2..............................................................................32 7.2 Costs Excluded As Metro System Costs...............................................................32 7.3 Revenue Sharing for Repurified Water — Phase 2 .................................................33 7.4 Capital Expense Rate Phase 2.............................................................................33 8. FUTURE NEGOTIATIONS AND COOPERATION......................................................34 9. THE METRO COMMISSION..........................................................................................34 9.2 Advisory Responsibilities of Metro JPA...............................................................34 9.3 Delegation of Decision -Making Authority of the Metro JPA...............................35 9.4 Standing.................................................................................................................35 10. DISPUTE RESOLUTION.................................................................................................35 10.1 Mandatory Non -Binding Mediation......................................................................35 10.2 Selection of Mediator............................................................................................35 10.3 Mediation Expenses...............................................................................................35 10.4 Conduct of Mediation............................................................................................35 10.5 Mediation Results..................................................................................................36 10.6 Performance Required During Dispute.................................................................36 11. INSURANCE....................................................................................................................36 11.1 City Shall Maintain All Required Insurance.........................................................36 11.2 Substantially Equivalent Coverage........................................................................36 12. INTERRUPTION OF SERVICE......................................................................................36 13. NOTICES REQUIRED UNDER AGREEMENT.............................................................37 14. EFFECTIVE DATE AND EXPIRATION........................................................................37 14.1 Effective Date........................................................................................................37 14.2 Expiration..................................................................................................... ...37 14.3 Contract Capacity Rights Survive Expiration........................................................37 14.4 Abandonment.........................................................................................................3 8 10-23-25 4907-3419-6844 Page 15 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 15. ADMINISTRATIVE AGREEMENTS......................................•......................................38 15.1 Use and Process for Administrative Agreements..................................................38 16. GENERAL.........................................................................................................................39 16.1 Exhibits.......................................................................................... .................39 16.2 Electronic Exhibits and Attachments.....................................................................39 16.3 Amendments to Agreement...................................................................................40 16.4 Construction of Agreement....................................................................................43 16.5 Declarations Re: Agreement..................................................................................44 16.6 Right to Make Other Agreements..........................................................................44 16.7 Statute of Limitations to Resolve Billing Issues....................................................44 16.8 Counterparts and Electronic Signatures.................................................................45 16.9 Transparency..........................................................................................................45 16.10 Incorporation of Recitals.......................................................................................45 16.11 Joint Exercise of Power.........................................................................................45 ACRONYM LIST: ARA Amended and Restated Regional Wastewater Disposal Agreement COD Chemical Oxygen Demand CIP Capital Improvement Project(s) CPM Construction Project Management CWA San Diego County Water Authority ECAWP JPA East County Advanced Water Purification Joint Powers Authority FAB Functional Allocated Billing MBC Metropolitan Biosolids Center MGD Millions of Gallons per Day NCWRP North City Water Reclamation Plant NPDES National Pollutant Discharge Elimination System PLWTP Point Loma Wastewater Treatment Plant PWP Pure Water Program RSDP Reject Stream from Demineralization Process SBOO South Bay Ocean OutfaIl SBWRP South Bay Water Reclamation Plant TSS Total Suspended Solids 10-23-25 4907-3419-6844 Page 16 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda SECOND AMENDED AND RESTATED REGIONAL WASTEWATER DISPOSAL AGREEMENT THIS SECOND AMENDED AND RESTATED REGIONAL WASTEWATER DISPOSAL AGREEMENT ("Agreement") is made and entered into this day of 20 , by and between the CITY OF SAN DIEGO, a municipal corporation the "City"), on the one hand; and the CITY OF CHULA VISTA, a municipal corporation; the CITY OF CORONADO, a municipal corporation; the CITY OF DEL MAR, a municipal corporation; the CITY OF EL CAJON, a municipal corporation; the CITY OF IMPERIAL BEACH, a municipal corporation; the CITY OF LA MESA, a municipal corporation; the LEMON GROVE SANITATION DISTRICT, a political subdivision of the State of California; the CITY OF NATIONAL CITY, a municipal corporation; the CITY OF P0 WAY, a municipal corporation; the OTAY WATER DISTRICT, a political subdivision of the State of California; the PADRE DAM MUNICIPAL WATER DISTRICT, a political subdivision of the State of California; and the SAN DIEGO COUNTY SANITATION DISTRICT, a political subdivision of the State of California (collectively, the "Participating Agencies"), on the other hand. The City and the Participating Agencies may be referred to herein individually as a "Party," and collectively as the Parties." RECITALS WHEREAS, the City and the Participating Agencies (or their predecessors in interest) entered into that certain Regional Wastewater Disposal Agreement dated May 18, 1998 (the "1998 Agreement"), which provided, among other things, for certain contract rights to capacity in the Metropolitan Sewerage System, a system of wastewater conveyance, treatment, and disposal facilities ("Metro System") and the establishment of a mechanism to fund the planning, design, construction, operation, and maintenance of the Metro System by the City and the Participating Agencies; and WHEREAS, the purposes of the 1998 Agreement were: (1) to replace the prior -existing sewage disposal agreements between the City and the Participating Agencies; (2) to provide certain contract rights to capacity in the Metro System to the Participating Agencies; (3) to establish a mechanism to fund the planning, design, construction, operation and maintenance of the Metro System by the City and the Participating Agencies as necessary to provide hydraulic capacity, and to comply with applicable law and with generally accepted engineering practices; and (4) to establish a system of charges which allocates the costs of the planning, design and construction of such new wastewater conveyance, treatment and disposal facilities as are necessary solely to provide for new capacity on a fair and equitable basis; and WHEREAS, on April 29, 2014 the San Diego City Council gave its approval and support for the Pure Water San Diego program by adoption of Resolution No. R-308906, which approved and supported the City's efforts to develop an implementation strategy to offload wastewater flow from the Point Loma Wastewater Treatment Plant through implementation of potable reuse, resulting in effluent discharged to the Pacific Ocean being equivalent to what would be achieved by upgrading the Point Loma Wastewater Treatment Plant to a secondary treatment plant secondary equivalency); and 10-23-25 4907-3419-6844 Page 17 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda WHEREAS, the City is implementing a phased, multi -year program designed to achieve compliance with the Clean Water Act and regionally produce up to 83 million gallons per day of safe, reliable potable water using new, expanded, or modified facilities, some of which will include Metro System facilities, in order to achieve secondary equivalency at the Point Loma Wastewater Treatment Plant; and WHEREAS, the Pure Water Program will not only benefit the City by producing repurified water, but also the Participating Agencies and their wastewater customers, especially if secondary equivalency is recognized through federal legislation amending the Clean Water Act. Specifically, implementation of the Pure Water Program will reduce wastewater discharges to the Point Loma Wastewater Treatment Plant, part of the Metro System where a large portion of the Participating Agencies' wastewater is currently treated and disposed by discharging it into the Pacific Ocean. By diverting wastewater from the Point Loma Wastewater Treatment Plant and reducing the effluent discharged into the Pacific Ocean, the City and the Participating Agencies will potentially avoid billions of dollars in unnecessary capital, financing, energy, and operating costs to upgrade the Point Loma plant to secondary treatment at full capacity. Avoiding such costs would result in significant savings for regional wastewater customers and achieve environmental benefits by reducing ocean discharge; and WHEREAS, on or around November 2019, the East County Advanced Water Purification Joint Powers Authority (the "ECAWP JPA") was created to implement a potable reuse program to improve local and regional water supply reliability to supply advanced treated recycled water to East San Diego County through the East County Advanced Water Purification Project (the ECAWP Project"). The ECAWP Project is planned to capture and treat approximately 15 million gallons per day of wastewater that would otherwise be disposed of in the Metro System to produce an annual average supply of approximately 11.5 million gallons per day of new local drinking water. By diverting some wastewater and wastewater content away from the Metro System, the ECAWP Project has the ability to aid and contribute towards the City and region's efforts to produce a regional annual average of up to 83 million gallons per day of water suitable for potable reuse by December 31, 2035, as described in the Cooperative Agreement in Support of Pure Water San Diego executed by the City and certain environmental stakeholders on December 9, 2014. The ECAWP Project includes a residuals bypass system that will convey RSDP (as defined herein) from the advanced water purification facility, and Centrate from the solids dewatering process of the solids handling facility, to an existing regional sewage gravity pipeline owned and operated by the City for treatment and disposal; and WHEREAS, effective on or around August 22, 2021, the City and the Participating Agencies amended the 1998 Agreement by executing an Amended and Restated Regional Wastewater Disposal Agreement (the "ARA") to address the costs and revenues associated with Phase i of the Pure Water Program, including specific cost allocations related to the construction, expansion, andlor modification of Metro System facilities and Water Repurification System facilities designed to produce up to 30 million gallons per day of Repurified Water ("Phase 1"). The ARA provided that within one year of its effective date, the Parties intended to meet and negotiate in good faith regarding one or more amendments to the ARA or to its Exhibits to address multiple outstanding items described in Section 2.9 of the ARA; and 2- 10-23-25 4907-3419-6844 Page 18 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda WHEREAS, Section 14.2 of the ARA provided that the Parties may amend the ARA by a written agreement between the City and all Participating Agencies stating the Parties' intent to amend or supplement the agreement; and WHEREAS, in an effort to address in good faith the outstanding items described in Section 2.9 of the ARA, and comprehensively and equitably address the costs, revenues, and billing system associated with the Pure Water Program and the related construction, expansion, and/or modification of Metro System facilities beyond Phase 1, the City and Participating Agencies wish to amend and restate the ARA as provided herein. NOW, THEREFORE, in consideration of the mutual promises set forth in this Agreement, the City and the Participating Agencies restate and amend the ARA and agree as follows: 1. DEFINITIONS 1.1 Administrative Agreement shall refer to a formal binding contract, approved under the process set forth in Section 15 of this Agreement, which implements technical, administrative, operational, and/or procedural details of this Agreement. 1.2 Administrative Approval is an approval mechanism authorized by this Agreement that refers to a City administrative process by which the subject of a particular action is presented to the City's Director of the Public Utilities Department or their designee for approval, based on discussion and evaluation according to sound engineering standards if applicable, and any additional requirements related to review for the action requiring the City's Administrative Approval as set forth in this Agreement. 1.3 Annual Average Daily Flow is the number, in millions of gallons of wastewater per day ("MGD"), calculated by dividing total Flow on a fiscal year basis by the number of days in the applicable year, which is a term used for billing purposes. 1.4 ARA shall mean the Amended and Restated Regional Wastewater Disposal Agreement between the City and the Participating Agencies effective August 22, 2021. 1.5 Capital Expense Rate shall mean the same as the term is defined in Section 6.7.2. 1.6 Capital Improvement Costs means all costs of the planning, design, financing, construction, and/or replacement necessary to render a capital project facility fully operational, including upgrades and reconstruction, consistent with the City's policies and procedures. This includes costs for planning and environmental work; procurement of consultants or contractors to perform such work; construction management; investigative studies and pre -design work; labor and materials; inspection and testing; and financing cost including interest on financial instruments. 1.7 Centrate shall mean the liquid byproduct that results from the dewatering of digested solids as part of wastewater treatment processes. 1.8 Chemical Oxygen Demand or COD means the measure of the chemically decomposable material in wastewater, as determined by the procedures specified in the most 3- 10-23-25 4907-3419-6844 Page 19 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda current edition of "Standard Methods for the Examination for Water and Wastewater," or any successor publication which establishes the industry standard. 1.9 City shall mean and refer to the City of San Diego. 1.10 City's Water Utility shall mean any and all facilities, properties, improvements and works at any time owned, controlled or operated by the City as part of the public utility system of the City for water purposes, for the development, obtaining, conservation, production, storage, treatment, transmission, furnishing and distribution of water and its other commodities or byproducts for public and private use (whether located within or without the City), and any related or incidental operations designated by the City as part of the Water System, including reclaimed and re -purified water. 1.11 City Water Utility PWP Costs are those Pure Water Program costs allocated to the City's Water Utility and therefore excluded as Metro System Costs under Section 6.3 of this Agreement. 1.12 Contract Capacity is the contractual right possessed by each Participating Agency to discharge wastewater into the Metro System pursuant to this Agreement up to the limits set forth in Exhibit B, Distribution of Wastewater System Capacity Rights, attached hereto. 1.13 Contract Capacity Transfers shall refer to the capacity transfers initiated based on Metered Flow and Strength data using the methodology set forth in Exhibit E, Methodology for Contract Capacity Transfers, which change a Participating Agency's Contract Capacity, as set forth more fully in Section 4.4.3.1 and 4.4.3.2. These changes will generally be made to a single Participating Agency's annual Contract Capacity to correct capacity exceedances but can also be made to reduce a Participating Agency's Contract Capacity. 1.14 CWA shall mean the San Diego County Water Authority. 1.15 ECAWP JPA shall mean the East County Advanced Water Purification Joint Powers Authority. The ECAWP JPA itself is not a Participating Agency or a Party to this Agreement. 1.16 ECAWP JPA Agencies shall mean collectively the City of El Cajon, the Padre Dam Municipal Water District, and the San Diego County Sanitation District. 1.17 ECAWP Project shall mean the ECAWP JPA's project to capture and treat wastewater that would otherwise be disposed of in the Metro System to produce an annual average supply of approximately 11.5 MGD of new local drinking water, as well as other byproducts such as recycled water and energy recovery facilities. 1.18 Fixed Capacity shall mean the capacities for Monthly Average Daily Flow, Incremental Peak Flow, RSDP, COD and TSS for each agency as set forth in Exhibit B. 1.19 Fixed Capacity Charge shall mean the charges set forth in Exhibit B that are identified as "Fixed Capacity Charges" that represent the Parties' proportional charges for 4- 10-23-25 4907-3419-6844 Page 20 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda maintaining the Metro System. Items such as debt service are also included in the Fixed Capacity Charges. 1.20 Flow shall refer to the flow of wastewater discharged by the City and/or one or more Participating Agency/ies into the Metro System. 1.21 Functional Allocated Billing or FAB shall mean the method for distributing all capital, operations, and maintenance Metro System Costs and Revenues on an annual basis by grouping expenses according to their purposes and the current approved Functional -Design Methodology. 1.22 Functional -Design Methodology shall mean the process of allocating fixed and variable Operation and Maintenance Costs and Capital Improvement Costs to Flow, RSDP and Strength parameters recognizing the benefits of both the design criteria and the primary function of a unit process. 1.23 Incremental Peak Flow shall mean the Peak Flow minus the Monthly Average Daily Flow. 1.24 Industrial Wastewater means all wastewater, excluding domestic wastewater, and shall include all wastewater from any producing, manufacturing, processing, institutional, commercial, service, agricultural, or other operation. These may also include wastes of human origin similar to domestic wastewater. 1.25 Industrial User means a discharger of Industrial Wastewater to a public sewer. A Participating Agency may be an Industrial User. 1.26 Joint Administrative Approval Process is an approval process authorized by this Agreement by which an Administrative Agreement may be created, revised, supplemented, replaced or terminated, subject to the review and approval process set forth more fully in Section 15. 1.27 MBC Return shall mean and refer to Centrate created at the Metropolitan Biosolids Center, 5240 Convoy St, San Diego, CA 92111. MBC Return shall contain Metered Flow, TSS and COD. 1.28 Metered Flow shall mean the amount or volume of wastewater captured by meters that exist throughout the Metro System, estimates from unit count areas, or agreed upon estimates of flows where unit counts are not appropriate. When meters are out of service, estimates can be used to fill in data gaps. These meters, which may or may not be owned by the City, are further defined in Exhibit F, Metro System Flow Formulas and Sampling Locations, which may be amended from time to time. 1.29 Metro Commission or Metro JPA is the advisory body described under Section 9. 1.30 Metro System Costs shall mean, at a minimum, those costs set forth in Section 5.3 and as otherwise set forth in this Agreement. 5- 10-23-25 4907-3419-6844 Page 21 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 1.31 Metro System Revenues are those revenues set forth in Section 5.5. 1.32 Metropolitan Sewerage System or Metro System shall mean and consist of those facilities which are listed, shown and/or described in Exhibit A, Metro Facilities (Electronic Exhibit); file name: [Enter]; time stamp of file, software used to open and view file including version; included herewith as CD-ROMIDV D -ROM, including any amendments thereto authorized by this Agreement. Exhibit A includes current constructed facilities and proposed future facilities. 1.33 Monthly Average Daily Flow is the number, in MOD, calculated by dividing total Flow on a monthly basis by the number of days in that month. 1.34 Municipal System shall mean the City's wastewater collection system, consisting of pipelines and pump stations, which collects wastewater within the City of San Diego and conveys it to the Metropolitan Sewerage System for treatment and disposal. 1.35 New Contract Capacity shall mean capacity in excess of the Contract Capacity set forth in Exhibit B and authorized subject to Section 3.3. 1.36 North City Water Reclamation Plant or NCWRP is the wastewater treatment facility located at 4949 Eastgate Mall in San Diego, which includes four major processes: primary treatment, secondary treatment, tertiary treatment, and disinfection. 1.37 Operation and Maintenance Costs are the costs to operate, maintain, manage, repair, and keep the Metro System conveyance, disposal, treatment, and reuse facilities functioning in accordance with all applicable laws, rules, and regulations. 1.38 Participating Agencies shall mean all the local governments and agencies that executed this Agreement other than the City. 1.39 Peak Flow represents the wastewater flow in millions of gallons of wastewater per day that is captured in the highest 1 -hour period in a fiscal year. 1.40 Point Loma Wastewater Treatment Plant or PLWTP is the main City wastewater treatment plant with a Monthly Average Daily Flow capacity of 240 million gallons per day and a peak flow capacity of 432 million gallons per day (as of the date of this Agreement). It is an advanced primary treatment plant which includes four major processes: screening, grit removal, chemically enhanced sedimentation, and digestion. 1.41 Pooled Capacity shall refer to the capacity in the Metro system greater than that which has been designated in Exhibit B. Pooled Capacity amounts are shown in Exhibit E, Methodology for Contract Capacity Transfers, and may be recalculated from time to time as set forth more fully in this Agreement. 1.42 Postage Stamp Methodology is a methodology that can allocate a single uniform cost to any of the annual Contract Capacity cost parameters identified in Exhibit B. This methodology assumes that even though a particular discharger may not utilize all of the infrastructure, all dischargers into the Metro System benefit from the shared infrastructure. 6- 10-23-25 4907-3419-6844 Page 22 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 1.43 Projected Future Strength and Flow Amounts are the five (5) values described below: 1.43.1 Projected Future Metro Flow is the estimated amount of Monthly Average Daily Flow, stated in millions of gallons per day (MGD), that the City and each Participating Agency are projected to have in a designated future year— currently, the 2050 fiscal year. Projected Future Metro Flow for each Party is stated in Exhibit B. 1.43.2 Projected Future Incremental Peak Flow is the estimated amount of Annual Incremental Peak Flow, stated in millions of gallons per day (MGD), that the City and each Participating Agency are projected to have in a designated future year — currently, the 2050 fiscal year. Projected Future Incremental Peak Metro Flow for each Party is stated in Exhibit B. 1.43.3 Projected Future RSDP Flow is the estimated amount of RSDP Flow, stated in millions of gallons per day (MGD), that the City and each Participating Agency are projected to have in a designated future year — currently, the 2050 fiscal year. Projected Future RSDP Flow for each Party is stated in Exhibit B. 1.43.4 Projected Future COD Flows is the estimated amount of Chemical Oxygen Demand (COD), stated in pounds per day, that the City and each Participating Agency are projected to have in a designated fiscal year — currently, the 2050 fiscal year. Projected Future COD Flows for each Party are stated in Exhibit B. 1.43.5 Projected Future TSS Flows is the estimated amount of Total Suspended Solids (TSS) stated in pounds per day, that the City and each Participating Agency are projected to have in a designated fiscal year — currently, the 2050 fiscal year. Projected Future TSS Flows for each Party are stated in Exhibit B. 1.44 Pure Water Capital Melded Percentage is the proportionate share stated in Column 7 of Exhibit B (formerly Column 12 of Exhibit G of the ARA), by which Pure Water Program Capital Improvement Costs, Repurified Water Revenue, and the Capital Expense Rate will be allocated among the City and the Participating Agencies. The Pure Water Capital Melded Percentage is based on each Party's proportionate share of Projected Future Metro Flow, Projected Future TSS Flows, and Projected Future COD Flows, which proportions are weighted as described in Footnote 5 of Exhibit B. 1.45 Pure Water Program or PWP is the City's phased, multi -year program designed to produce up to 83 million gallons per day of Repurified Water using new, expanded, or modified facilities, some of which will include Metro System facilities. 1.46 PWP Phase I or Phase 1 shall mean the first phase of the Pure Water Program, which modifies/constructs Metro System and Water Repurification System facilities and is designed to produce an annual average of 30 million gallons per day of Repurified Water. 1.47 PWP Phase 2 or Phase 2 shall mean the second phase of the Pure Water Program which modifies/constructs Metro System and Water Repurification System facilities and is designed to produce up to an additional annual average of 53 million gallons per day of Repurified Water. 7- 10-23-2 4907-3419-6844 Page 23 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 1.48 Recycled Water shall have the definition set forth in Title 22, Division 4 of the California Code of Regulations and shall mean water which, as a result of treatment of wastewater, is suitable for a direct beneficial use or a controlled use that otherwise could not occur. 1.49 Reject Stream from Demineralization Process or RSDP is a flow reject stream and treatment byproduct from a demineralization process at a potable reuse facility. Separately conveyed, it bypasses all secondary wastewater treatment processes. This flow primarily contains liquid and salts. 1.50 Repurified Water shall mean water which, as a result of advanced treatment of Recycled Water, is suitable for use as a source of domestic (or potable) water supply. 1.51 Repurified Water Revenue is the cost savings that will be realized when the City's Water Utility's annual costs per -acre foot for Repurified Water, including City Water Utility PW Costs, are less than the purchase costs per -acre foot for comparable water from the San Diego County Water Authority, as further described in Section 6. 1.52 Residuals shall mean RSDP and Centrate. In the future, Residuals may include other waste byproducts if the Parties agree in writing that other byproducts may be discharged into the Metro System. 1.53 South Bay Ocean Outfall or SBOO is the facility that is jointly owned by the International Boundary & Water Commission (U.S. Section IBWC) and the City. The outfall conveys and discharges treated effluent from the IBWC's International Wastewater Treatment Plant and treated effluent from the City's South Bay Water Reclamation Plant. As of the date of this Agreement, the outfall has a current Average Daily Flow Capacity of 174 million gallons per day. As of the date of this Agreement, the City owns 39.94% of the capacity of the outfall and the balance of the capacity is owned by the IBWC. 1.54 South Bay Water Reclamation Plant or SBWRP is the wastewater treatment facility located at 2411 Dairy Mart Road in San Diego, which includes four major processes: primary treatment, secondary treatment, tertiary treatment, and disinfection. 1.55 Strength means the measurement of Total Suspended Solids and Chemical Oxygen Demand within the Flow and any other measurement required by law after the date of this Agreement or necessary for the Functional Design Methodology. 1.56 Total Suspended Solids or TSS means the insoluble solid matter in wastewater that is separable by laboratory filtration, as determined by the procedures specified in the most current edition of "Standard Methods for the Examination of Water and Wastewater," or any successor publication which establishes the industry standard. 1.57 Tertiary Component is that portion of the wastewater treatment process that currently filters the secondary treated wastewater effluent through fine sand and/or anthracite coal to remove fine suspended solids and disinfects it to meet the requirements of the California Administrative Code, Title 22, or its successor for filtered and disinfected wastewater used for recycled and repurified water, 8- 10-23-25 4907-3419-6844 Page 24 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 1.58 Two -Party Approval is an approval mechanism under this Agreement that requires the City's Administrative Approval and a two-thirds (2/3) vote or greater of the Metro JPA Directors present at a duly noticed Metro JPA public meeting as described more particularly in Section 16. 1.59 Variable Costs shall refer to the portion of the Functional Design Methodology costs that are allocated based on Metered Flow and Strength. 1.60 Water Repurification System shall mean any facilities, including treatment and conveyance facilities, the purpose of which is the production or conveyance of Repurified Water. Water Repurification System includes, but is not limited to: the Tertiary Component of the North City Water Reclamation Plant to the extent being used to produce Repurified Water, the North City Pure Water Facility; the Repurified Water conveyance system, which will transport Repurified Water from the North City Pure Water Facility and/or other facilities to the Miramar Reservoir or other alternative location(s) as determined by the City; and any other Repurified Water treatment or conveyance facilities which are part of the Pure Water Program. These facilities are constructed and maintained at the expense of the City water utility and are excluded Metro System Costs under this Agreement. 2. OWNERSHIP AND OPERATION OF THE METRO SYSTEM 2.1 Rights of the Parties. The City is the owner of the Metro System, and any additions to the Metro System or other facilities constructed pursuant to this Agreement. As more particularly set forth in this Agreement, and subject to the terms and conditions of this Agreement, the rights of the Parties generally include the following: 2.1.1 All decisions with respect to the planning, design, construction, operation and maintenance of the Metro System shall rest with the City, in consultation with the Metro JPA. 2.1.2 The Participating Agencies shall have a contractual right to use the Metro System and to participate in its operation. 2.1.3 The City may transfer ownership of all or part of the Metro System at any time. In the event of a transfer, including a sale under Section 2.7, the City's successor shall be bound by the terms of this Agreement, and the Participating Agencies rights under this Agreement shall not be affected by such a transfer. 2.1.4 Any Participating Agency may transfer or assign its rights and obligations under this Agreement. Any transfer shall first be approved by the City. No transfer may occur if the City reasonably determines, after consultation with the Participating Agencies involved, that the proposed transfer will imbalance or adversely impact the City's ability to operate the Metro System. 2.2 Metro System Services. 2.2.1 The City shall provide wastewater conveyance, treatment and disposal services to the Participating Agencies through the Metro System, under the terms set forth in this Agreement. 9- 10-23-25 4907-3419-6844 Page 25 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 2.2.2 The City shall operate the Metro System in an efficient and economical manner, maintaining it in good repair and working order, all in accordance with recognized sound engineering and management practices. 2.2.3 The City shall convey, treat, and dispose of or reuse all wastewater received under this Agreement in such a manner as to comply with all applicable laws, rules and regulations. 2.3 Flow Commitment. 2.3.1 Subject to the provisions of this Agreement and absent a separate agreement of the Parties, all Flow within the capacity limits set forth in Exhibit B or any amendments or changes thereto shall remain in the Metro System. 2.3.2 This Agreement shall not preclude any Party from diverting Flow as a result of the construction of reclamation/reuse facilities or New Capacity outside of the Metro System. 2.3.3 Any Participating Agency may negotiate an agreement with the City to reduce all or part of their Contract Capacity. If a Participating Agency reduces its Contract Capacity to zero, that Participating Agency's rights shall terminate under this Agreement and that Participating Agency shall no longer be considered a member of the Metro JPA. However, the agreement between the City and Participating Agency shall provide that the Participating Agency pays its proportionate share of Capital Improvement Costs for the remainder of the useful life of the facility(ies) constructed during the time the Participating Agency possessed Contract Capacity in the Metro System. This shall include, but is not limited to, any remaining portions of outstanding debt that was incurred for capital facilities during the time the Participating Agency had the right to send Flow into the Metro System, and the cost to disconnect the Participating Agency's system from the Metro System. Any Contract Capacity that a Participating Agency chooses to relinquish under this section shall be treated as Pooled Capacity after the effective date of an agreement between the City and that Participating Agency. This section does not apply to inter -Agency transfers of Contract Capacity, which involve the relinquished Contract Capacity being assigned to and assumed by another Participating Agency or the City. Inter -Agency transfers are governed by Section 3.2 2.3.4 Flow Projections, Currently, the Projected Future Strength and Flow Amounts are projected to the year 2050 in order to allow the Parties time to plan for future development and growth. However, these projections may be amended from time to time through the Exhibit B amendment processes in this Agreement to more fairly align with actual flow and strength data. The parties shall begin discussion to recalculate the Projected Future Strength and Flow Amounts set forth in Exhibit B by no later than January 1, 2040. 2.4 Funding Obligations. The City shall fund the acquisition, construction, maintenance andlor operation of the Metro System from monies in (or sewer revenues which populate) the Sewer Revenue Fund for the Metro System, andlor from construction funds derived from the sale of duly authorized sewer revenue bonds for the Metro System. Nothing in this Section or Agreement shall (i) obligate the City to make any payment for the acquisition, construction, maintenance or operation of the Metro System from monies derived from taxes or any other income or revenue of the City; (ii) be construed to obligate the City or any Participating 10- 10-23-25 4907-3419-6844 Page 26 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Agency to pay from its annual income and revenues any sum which would create an indebtedness, obligation or liability within the meaning of the provisions of Section 18 of Article XVI of the Constitution of the State of California and, in the City's case, San Diego Charter Section 99; or iii) prevent the City, in its discretion, from using tax revenues or any other available revenues or funds of the City for any purpose for which the City is empowered to expend moneys under this Agreement. For the avoidance of doubt, subsections (i) and (ii) shall not relieve the City from its obligations to fund the Metro System as provided in this Section 2.4. 2.5 Limitations on Types and Condition of Wastewater, 2.5.1 Each Participating Agency shall minimize to the maximum extent practicable, the infiltration and inflow of surface, ground or stormwaters into its respective wastewater systems. 2.5.2 Each Participating Agency will ensure that all Industrial Users of its wastewater system are regulated by and comply with the City's industrial pretreatment program. City shall not require the Participating Agencies to take any actions against such Industrial Users beyond that which are (l) required under applicable laws, rules and regulations, (2) taken by the City, or (3) that can be taken, but are not being taken by the City. 2.5.3 City and the Participating Agencies agree that the Interjurisdictional Pretreatment Agreements executed by and between the City and each Participating Agency, as applicable, shall terminate effective upon the date of this Agreement. However, the separate transportation agreements that are currently in effect between or among the City and the Participating Agencies shall remain in effect in accordance with their terms. Each Participating Agency will not discharge wastewater originating outside its respective boundaries into the Metro System without the approval of the City, which shall not be unreasonably withheld. 2.5.4 Each Participating Agency shall be responsible for the violation of any applicable laws, rules or regulations associated with its respective discharge of wastewater into the Metro System. Nothing in this Agreement shall affect or prohibit the ability of any Participating Agency to hold third parties responsible for such violations. However, City shall be responsible for enforcement actions related to the violation of any applicable laws, rules, or regulations associated with industrial waste dischargers regulated by City, though each Participating Agency shall collaborate with City when necessary, on any enforcement response for pretreatment violations within a Participating Agency's jurisdiction. However, the City shall not be responsible for enforcement or monitoring related to a Participating Agency's compliance with its own NPDES Permit. 2.5.5 Food establishments and dischargers of fats, oils, and grease (FOG) are regulated and monitored by individual Participating Agencies within their jurisdiction. Participating Agencies are responsible for the provision of FOG programs, services, and enforcement within their jurisdiction. The City will not provide FOG -related services or programs outside of the City's jurisdiction. 2.6 Enforcement Actions. In the event a regulatory agency, imposes any penalty or fine, or takes other enforcement action, or a private citizen brings a citizen enforcement action to enforce 10-23-25 4907-3419-6844 Page 27 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda regulatory requirements, (collectively, "Enforcement Actions") relating to the conveyance, treatment, or disposal of wastewater in or from the Metro System or operation of the Metro System, the City shall determine as part of its investigation and response to the notice of violation whether the City or a Participating Agency or Agencies caused or contributed to the violation for reasons which may include, without limitation, exceeding their Contract Capacity, the contents of their wastewater, or the failure to maintain or operate the Metro System or a Participating Agency's system. Any costs associated with an Enforcement Action including but not limited to fines, penalties, corrective measures, and costs of defense (collectively, "Penalty(ies)") shall be shared by the Participating Agencies and the City proportionately based on Fixed Capacity as set forth in the then current Exhibit B, unless the City determines, based on verifiable facts, that the violation for which the Penalty is imposed was caused by, or was the result of, gross negligence or willful misconduct of the City or a Participating Agency. 2.6.1 For any Enforcement Actions (1) related to sanitary sewer overflows of 10,000,000 gallons or more from the Metro System occurring after the effective date of this Agreement, or (2) that the City reasonably anticipates will result in the Participating Agencies' collective responsibility for the Penalties imposed to exceed 10% of the Metro Participating Agencies combined annual operations and maintenance budget for the Metro System for the fiscal year in which the Penalty is imposed ("Threshold Amount"), the City's determination will be subject to review by the Metro JPA as set forth in 2.6.1.1 through 2.6.1.8 below. The scope of the Metro JPA's review shall be limited to whether the violation for which the Penalty is imposed was caused by, or was the result of, gross negligence or willful misconduct of the City or a Participating Agency, and if so, how the Penalty should be fairly allocated. For all other Enforcement Actions, the City's determination related to the allocation of Penalty shall be final. 2.6.1.1 The City will provide a copy of any report submitted to a regulatory agency in response to an Enforcement Action to the Metro JPA within 30 days of submitting that report to the regulatory agency. In that same communication, the City will also provide a summary of the City's findings regarding causation and preliminary determination regarding the allocation of any Penalties. If these determinations have not been made, the City will provide an anticipated date that the information will be provided. 2.6.1.2 If the Metro JPA disputes the City's determination as to the allocation, as evidenced by a vote approved by two-thirds of the Metro JPA Directors present at a duly noticed meeting, it shall notify the City in writing of the same within 90 days of receiving the City's preliminary allocation determination. 2.6.1.3 The City and representatives of the Metro JPA shall meet and confer to discuss the matter and try to reach an agreement on the appropriate allocation. To facilitate resolution, the meet and confer process shall be treated as a settlement discussion under the California Evidence Code and shall be a confidential process. The meet and confer process shall focus on whether the violation for which the Penalties are being imposed is the result, in whole or in part, of the gross negligence or willful misconduct of the City or a Participating Agency, and if so, how the Penalties shall be allocated. 2.6.1.4 If through the meet and confer process, the City determines that the Participating Agencies' collective responsibility for the Penalties imposed will be less than the 12- 10-23-25 4907-3419-6844 Page 28 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Threshold Amount, then the City will inform the Metro JPA of this determination and allocate the Penalty as such, and no further action by the Metro JPA is required. 2.6.1.5 If through the meet and confer process, the City and representatives of the Metro JPA reach an agreement, and the Participating Agencies' collective responsibility for the Penalties imposed will be equal to or greater than the Threshold Amount, then that agreement shall be subject to the Two -Party Approval process. The City and representatives of the Metro JPA shall have an opportunity to present the proposed agreement to the Metro JPA before a vote on the determination. 2.6.1.6 If the City and representatives of the Metro JPA are unable to reach an agreement and Participating Agencies' collective responsibility for the Penalties imposed is equal to or exceeds the Threshold Amount, the City will make a final determination regarding allocation of the Penalty and present the determination to the Metro Commission. 2.6.1.7 In the event that Two Party Approval is required but is not achieved, each Participating Agency shall pay the portion of the Penalty allocated to them at the time that it is invoiced, however, such payment may be made under protest. The Parties shall engage in the dispute resolution procedures under this Agreement to resolve the issue, prior to any Party having the right to initiate litigation. 2.6.1.8 Penalties in excess of the Threshold Amount shall be separated out in the reconciliation billing and notated as a spill penalty with reference to the first day of the spill associated with the penalty. 2.7 Right of First Refusal - 2.7.1 The City shall not sell or agree to sell the Metro System without first offering it to the Participating Agencies. For the purposes of this section, "Participating Agencies" shall mean a Participating Agency, a group of Participating Agencies, or a third party representing one or more Participating Agencies. The term "sell" shall include any transfer or conveyance of the Metro System or of any individual treatment, collection, or reclamation facility or outfall within the Metro System. 2.7.2 The City and the Participating Agencies recognize that transfer of ownership of the Metro System is currently restricted by Sections 6.04 and 6.20 of the Installment Purchase Agreement between the City and the Public Facilities Financing Authority of the City, which inter alia restricts the transfer of ownership to the Metropolitan Wastewater Sewage District or other governmental agency whose primary purpose is to provide wastewater treatment. The City shall not seek to impose on bond holders a waiver of Section 6.04 or 6.20. Absent such a restriction, before the City sells or agrees to sell the Metro System, or any portion of it, the City shall offer to sell the Metro System to the Participating Agencies (the "Offer") on the terms and at a price equal to that proposed for the sale of the Metro System to a third party. The City shall provide all Participating Agencies with written notice of the Offer per Section 13 . The Participating Agencies shall have ninety (90) days from the date of mailing of the Offer (the "Intent to Respond Period") in which to notify the City of their intent to respond to the Offer. If a Participating Agency or Agencies notify the City of their intent to respond to the Offer, that Participating Agency or those 13- 10-23-25 4907-3419-6844 Page 29 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Agencies shall have five months from the expiration of the Intent to Respond Period in which to accept or reject the Offer. The Offer shall contain the name of the proposed purchaser, the proposed sale price, the terms of payment, the required deposit, the time and place for the close of escrow, and any other material terms and conditions on which the sale is to be consummated. If no Participating Agency or Agencies notifies the City of its (or their) intent to respond to the Offer within the Intent to Respond Period, the City may move forward with the sale of the Metro System without further notice to the Participating Agency in accordance with Section 2.7.3 below. 2.7.3 If the Participating Agencies give timely notice of their intent to respond and timely notice of their acceptance of the Offer, then the City shall be obligated to sell and the Participating Agencies shall be obligated to purchase the Metro System or any individual treatment, collection or reclamation facility or outfall within the Metro System, as applicable, at the price and on the terms and conditions of the Offer. If the Participating Agencies do not give timely notice of their intent to respond or their acceptance of the Offer, or do not submit an offer on the same terms and conditions as the Offer, the City may, following the end of the Offer period, sell the Metro System, or any portion of it, at a price and on terms and conditions no less favorable to the City than those in the Offer. The City shall not sell the Metro System to any third party on terms or at a price less favorable to the City from the terms and price contained in the Offer absent compliance with the terms of this Section. The City's sale of the Metro System under Section 2.7, is a transfer of ownership subject to Section 2.1.3. 2.7.4 Nothing herein shall prevent the City from entering into a financing agreement which may impose limits on the City's power to sell the Metro System to the Participating Agencies pursuant to Section 2.7.1 if the City reasonably believes that such a financing agreement is in the City's best interest. Neither the entry into such a financing agreement by the City nor the performance thereof by the City shall constitute a breach or default by the City hereunder. 2.8 Uniform Enforcement of Pretreatment Program by City. The Parties have determined that it is in their best interests for a single agency to be responsible for management of the pretreatment program for the Metro System in order to: (a) Ensure protection of the entire Metro System, including the successful operation of the Pure Water Program; (b) Provide consistent and uniform regulation of Industrial Users, including those subject to pretreatment requirements; (c) Provide for transparent and fair cost recovery from all dischargers; and d) Promote efficiency and accountability in the administration of the Metro System. For these reasons, the Parties are delegating pretreatment responsibilities to the City, except regulation of Food Establishments and FOG dischargers, as more fully set forth in this Agreement and in Administrative Agreement #1 Between City of San Diego and Participating Agencies for the Unified Management of Industrial Waste Discharge Pretreatment and Enhanced Source Control Programs ("Administrative Agreement #1"). Notwithstanding the above, the City may enter into supplementary agreements with an individual Participating Agency, or a group of Participating Agencies, relating to industrial waste discharge pretreatment and enhanced source control programs unique to such Participating Agency(ies), so long as the supplementary agreement incorporates a separate cost proportional to the participation of such Participating Agency or group of Participating Agencies that is the sole responsibility of such Participating Agency(ies). 14- 10-23-25 4907-3419-6844 Page 30 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 2.8.1 Delegation of Authority. Each Participating Agency shall and hereby does delegate to City full authority and responsibility to operate, manage, and enforce an effective pretreatment program throughout the Metro System to ensure that all Industrial Users are subject to uniform rules and regulations, with direct billing to Industrial Users by the City to begin on the first July 1 following execution of this Agreement. 2.8.2 Operations and Maintenance. Procedures relating to the operation, management, enforcement, and cost recovery for the pretreatment program are set forth in Administrative Agreement #1. 2.8.3 Amending Pretreatment Program Procedures. Administrative Agreement 1 may be amended from time to time as set forth in Section 15. In the event of any conflict between this Agreement and Administrative Agreement #1, the terms of this Agreement shall control. 2.8.4 Adoption of Local Ordinances. By no later than June 30 following the Effective Date of this Agreement, every Participating Agency shall adopt a local ordinance conforming with the sample ordinance contained in Administrative Agreement #1 and the City's pretreatment ordinance, each as amended from time to time, to ensure consistency throughout the Metro System. 2.8.5 Identification of New Industrial Users. Participating Agencies shall notify the City of any identified potential new Industrial Users within their respective boundaries while the City will bear responsibility for inventory assessments on a regular basis as set forth in Administrative Agreement #1. 2.8.6 Permitting and Permit Compliance. Nothing in this Agreement shall be construed to relieve any discharger to the Metro System of the responsibility to obtain and comply with any required permits for, and to comply with rules and regulations applicable to, dischargers to the Metro System. If the City determines that an Industrial Wastewater Control Program Permit is required, it shall issue the permit subject to the City's permit requirements. The City's approval or denial of any application for, or revocation of, an Industrial User Permit shall be in accordance with Chapter 6, Article 4 of the San Diego Municipal Code as well as any other applicable federal, state or local regulations, any published City guidance related to the Industrial Wastewater Control Program, and the City's Enforcement Response Plan, all as may be amended, renumbered, or renamed from time to time. The City and any Participating Agency may elect to coordinate and combine issuing their wastewater discharge permits to Industrial Users when deemed appropriate by both parties. Any agreement between the City and the Participating Agencies related to permitting under the Industrial Wastewater Control Program, shall not transfer responsibility to City for any other type of permitting outside of the City's jurisdiction, or subject any local agency as that term is defined in California Government Code section 53090, to local building and zoning ordinances that the local agency is not otherwise legally subject to. 2.8.7 Inventory of Industrial Users. City shall create and maintain an inventory of all Industrial User within the Metro System as soon as reasonably practicable following execution of this Agreement. The Participating Agencies shall review the inventory and shall notify the City 15 - 10-23-25 4907-3419-6844 Page 31 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda of an Industrial User(s) in its jurisdiction that is not identified on the inventory as set forth in Administrative Agreement # 1. 2.8.8 Evaluation, Monitoring, Enforcement and Program Review. Upon the effective date of this Agreement, it shall be the City's right and obligation to carry out pretreatment evaluation, permitting, monitoring and/or enforcement throughout the Metro System consistent with the procedures set forth in Administrative Agreement #1. The City's pretreatment program review shall occur as necessary, but no less than once every five (5) years. Nothing herein shall be construed as prohibiting any Participating Agency from enforcement of its own pretreatment ordinance within its jurisdiction. 2.8.9 City's Direct Billing of Industrial Users. The City shall directly bill Industrial User throughout the Metro System to recover costs associated with the pretreatment program as set forth in Administrative Agreement #1. The City Council shall set and approve such costs in a publicly noticed meeting pursuant to the procedures set forth in Administrative Agreement #1. 2.9 Wastewater Generated at Military Bases. The City may contract directly with federal military bases that are connected to the Metro System for wastewater services and capacity subject to the terms of this Section 2.9. If a United States military base is located within a Participating Agency's jurisdiction, the Participating Agency may request that the City bill that military base directly as a separate and distinct customer. In the event the City agrees to accept the military's wastewater and bill the military base as a separate and distinct customer, then (1) the Participating Agency shall have no billing obligations with respect to the military base; (2) each Participating Agency whose sewage line conveys the military base's wastewater reserves the right to negotiate and charge the federal government a conveyance or transportation fee for use of that Participating Agency's sewer line; (3) the City shall require that the military base comply with the applicable City pretreatment rules; and (4) the City agrees that the wastewater generated by the military base shall not be considered wastewater of the Participating Agency with respect to capacity once the City enters into an agreement with the military base. Any transfers of capacity that are appropriate or necessary to accommodate flow from military bases, if needed, would be governed by Section 3.2 herein, "Inter -Agency Transfers of Contract Capacity." CAPACITY RIGHTS 3.1 Contract Capacity. Each Participating Agency shall have the contractual right to discharge wastewater to the Metro System up to the limits set forth in Exhibit B ("Contract Capacity"). Each Party's Contract Capacity as stated in Exhibit B, is used for the purpose of allocating the Metro System's Pure Water Program Capital Improvement Costs, Repurified Water Revenue, and the Capital Expense Rate under this Agreement. 3.2 Inter -Agency Transfers of Contract Capacity. The Participating Agencies and the City may buy, transfer, sell or exchange all or part of their Contract Capacity among themselves on such terms as they may agree upon, subject to the following: 3.2,1 Any Party requesting to buy, transfer, sell, or exchange all or part of their Contract Capacity ("Inter -Agency Transfer") shall provide a written proposal to the City 16- 10.23.25 4907-3419-6844 Page 32 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda including the proposed terms of such Inter -Agency Transfer. The Party requesting the Inter - Agency Transfer shall also provide notice to all other Participating Agencies under Section 13 concurrently with submitting the proposal to the City. 3.2.2 All Participating Agencies will have 45 days to provide any technical input to the City regarding the proposed Inter -Agency Transfer. Any Participating Agency providing technical input shall provide a copy of such input to all other Participating Agencies under Section 13 concurrently with submitting the input to the City. 3.2.3 Upon receipt of a request for an Inter -Agency Transfer, the City will review the request, consult with the affected Participating Agencies, and consider any technical input provided by other Participating Agencies. 3.2.4 All proposed purchases, transfers, sales or exchanges of Contract Capacity require the City's Administrative Approval prior to becoming effective. No Contract Capacity may be transferred if the City determines that said transfer will imbalance, or will otherwise adversely impact the City's ability to operate the Metro System. Provided, however, that the Participating Agency seeking the transfer may offer to cure such imbalance at its own expense. If the Participating Agency makes such an offer, the City may not unreasonably withhold Administrative Approval. 3.2.5 If the City approves the offer as proposed, the City shall adjust the Contract Capacity set forth in Exhibit B per Section 3.6 to reflect the approved changes. If the City determines, after taking the steps in Section 3.2.3 that an Inter -Agency Transfer may be approved if the request is modified, the City will provide a written notice to all Participating Agencies of the modified Inter -Agency Transfer under Section 13 no less than 30 days prior to the Inter -Agency Transfer becoming effective. Such modified Inter -Agency Transfer will become effective 30 days following the written notice being provided, and the City will prove an updated Exhibit B per Section 3.6 reflecting the approved changes. 3.2.6 If a Participating Agency reduces its Contract Capacity to zero through an Inter -Agency Transfer, that Participating Agency's rights under this Agreement shall terminate and that Participating Agency shall no longer be a member of the Metro JPA. The Participating Agency shall remain responsible for all outstanding financial obligations under this Agreement, unless the Inter -Agency Transfer Agreement assigns those obligations to the Participating Agency accepting the transfer and that agency assumes those obligations. Outstanding financial obligations include, but are not limited to, a Participating Agency's proportionate share of Capital Improvement Costs for the remainder of the useful life of the facility(ies) constructed during the time the Participating Agency possessed Contract Capacity in the Metro System, including any remaining portions of outstanding debt incurred for capital facilities during the time the Participating Agency had the right to send Flow into the Metro System, and the cost to disconnect the Participating Agency's system from the Metro System. 3.3 New Contract Capacity. The Parties recognize that the Metro System may be modified to create capacity in the Metro System beyond that set forth in Exhibit B as a result of the construction of additional facilities, acquisition of facilities, increased flows, or as required by regulatory or similar such action. If capacity in excess of the Contract Capacity ("New Contract 10-23-25 4907-3419-5844 Page 33 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Capacity") is required or requested by a Party, the Parties shall negotiate in good faith to provide the needed or requested capacity. If the Parties agree to provide New Contract Capacity, they shall memorialize the agreement for New Contract Capacity in an Administrative Agreement subject to the Joint Administrative Approval Process set forth in Section 15. If the parties execute an Administrative Agreement for New Contract Capacity, Exhibit B shall also be adjusted pursuant to Section 3.6 to reflect the New Contract Capacity. 3.4 Reductions in Metro System Capacity. The Parties further recognize that Metro System Capacity may be reduced to comply with, or in response to, applicable permit conditions, or related regulatory action, or sound engineering principles. In the event that the capacity of the Metro System is re -rated to levels below the numbers reflected in the Totals Line set forth in Exhibit B, then the Contract Capacity shall be reallocated proportionately among the Parties based on the percentages of fixed ownership set forth in Exhibit B at that point in time, subject to the City's Administrative Approval and amendment of Exhibit B. 3.5 Restrictions on Veto of Transfers and Acquisitions of Capacity. Each Party understands and agrees that no Participating Agency has a right to veto or prevent the transfer of capacity between other Participating Agencies or the City, nor the creation or acquisition of new capacity for another Participating Agency or Agencies. By signing this Agreement, each Participating Agency is expressly preapproving such actions. The sole right of a Participating Agency to object to any of the foregoing shall be through expression of its opinion to the Metro JPA and, where applicable, through exercise of its rights under the dispute resolution provisions of this Agreement. 3.6 Amendments to Exhibits B. If the City determines that an amendment to Exhibit B is required for any reason other than a request from a Participating Agency under Sections 2.3.3 and Sections 3.2, and that reason only requires the City's Administrative Approval, the City shall prepare and circulate to all Participating Agencies the proposed amendment to Exhibit B within 60 days of determining such an amendment is necessary. The Participating Agencies will have sixty (60) days to provide comments to the City, and all comments submitted to the City by a Participating Agency shall also concurrently be submitted to all other Participating Agencies. The City will review all comments received, prepare final amendments to Exhibit B to reflect adjustments in Contract Capacity, and circulate the final amended Exhibit B by no later than sixty (60) days after the City's Administrative Approval. If the amendment to Exhibit B requires an approval process other than the City's Administrative Approval, the Parties will follow the required approval process, and once that is completed, the City will prepare and provide the final version of Exhibit B within 60 days of the completion of the approval process. The City shall note each amendment and amendment date in the Exhibit List and shall keep an updated version of Exhibit B on file with the City Public Utilities Department at all times. An amendment to Exhibit B shall not be retroactive, except as provided in Section 4.4.3.3. 3.7 The South Bay Ocean Outfall. Nothing in this Agreement shall limit the City's right to transfer capacity rights in assets that are not a part of the Metro System, including without limitation that portion of the South Bay Ocean Outfall which is not part of the Metro System. SEE 10-23-25 4907-3419-6844 Page 34 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 4. FINANCE, BUDGETING, AND ACCOUNTING: PAYMENT AND MONITORING PROVISIONS 4.1 Payment for Metro System Facilities. Through the system of charges set forth in Section 5 of this Agreement, each Participating Agency shall pay its share of the costs of planning, design and construction of all of the Metro System facilities which are identified in Exhibit A. 4.2 Payment for Additional Metro System Facilities. Through the system of charges set forth in Section 5 of this Agreement, each Participating Agency shall pay its share of the costs of acquisition, planning, design and construction of such facilities, in addition to those set forth on Exhibit A, as are necessary to (a) convey, treat, dispose, and reuse wastewater in the Metro System; b) provide the Contract Capacity set forth in Exhibit B; and (c) maintain hydraulic capacity as otherwise required by sound engineering principles. Each Participating Agency shall pay its share of the costs necessary to ensure the Metro System maintains compliance with applicable laws, rules and regulations, including the Ocean Pollution Reduction Act of 1994 and its successor(s), as well as present and future waivers of applicable treatment standards at any Metro System treatment facility. Exhibit A may be amended to reflect replaced or rehabilitated facilities, or changes in facilities, subject to the City's Administrative Approval; however, if the City proposes to add a new Metro facility to Exhibit A, or convert a City facility to a Metro facility that will be added to Exhibit A, then each such amendment shall be (1) subject to the City's Administrative Approval, in its sole discretion, when the addition or conversion is for the purpose of complying with applicable laws, rules, or regulations; or (2) supported by an independent third -party study setting forth the benefits to the Metro System of each new facility, including a cost allocation for capital and projected annual maintenance costs if the addition or conversion is for any other purpose. For any new Metro facility or conversion of a City facility to a Metro facility proposed to be added or converted under (2) above, any such proposal must be memorialized in an Administrative Agreement subject to the Joint Administrative Approval Process set forth in Section 15. Once approved, the City shall amend Exhibit A accordingly and shall give notice of any amendments to all Participating Agencies. The City shall keep an updated version of Exhibit A on file with the City Public Utilities Department. Exhibit A may be amended to reflect other changes to the Metro System only as expressly provided in this Agreement. 4.3 Payment for Operation and Maintenance. Through the system of charges set forth in Section 5 of this Agreement, each Participating Agency shall pay its share of the Operation and Maintenance Costs of all Metro System facilities. The Participating Agencies shall not pay for the Operation and Maintenance Costs of the Water Repurification System, which are City Water Utility PW Costs. 4.4 Charges Based on Flow. Strength and Fixed Capacity: Exception. 4.4. I Except as otherwise described in this Section 4.4, a Participating Agency's share of the charges in this Section 4 shall be based on its proportionate Flow, Strength, and Fixed Capacities as set forth in Exhibit B, as described more fully in Section 5. 4.4.2 Notwithstanding Section 4.4.1, or any other provision of this Agreement, a Participating Agency's share of PWP Phase I Capital Improvement Costs, PWP Phase t Repurified Water Revenue, and Pure Water Program Capital Expense Rate attributable to the 19- i0-23-25 4907-3419-6844 Page 35 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Metro System as described in Sections 6.6 and 6.7 shall be assessed or credited based on the Parties' proportionate share of the Pure Water Capital Melded Percentages set forth in Column 7 of Exhibit B. The City shall annually allocate the estimated and actual PWP Phase 1 Capital Improvement Costs and revenues which are attributable to the Metro System in proportion to each Party's Pure Water Capital Melded Percentages as set forth in Column 7 of Exhibit B when estimating quarterly payments and conducting year-end adjustments. 4.4.3 Each Party recognizes that operation within respective Projected Future Strength and Flow Amounts is essential to the accurate allocation of costs and revenues under the Pure Water Program. In recognition of same, the Parties agree as follows: 4.4.3.1 Contract Capacity Transfers — Increases in Fixed Capacity Components. Beginning in the next fiscal year after the effective date of this Agreement, if a Party exceeds their Capacity Rights or any individual component of the Capacity Rights set forth in Exhibit B, by any one of the following triggers based upon data available at the completion of a fiscal year: (1) Three percent (3%) in a fiscal year for any two consecutive fiscal years, (2) One MGD in a fiscal year for any two consecutive fiscal years, or (3) The equivalent Strength of one MGD in a fiscal year for any two consecutive fiscal years; then, the City shall prepare an amendment to Exhibit B that reflects a Contract Capacity Transfer for that Party based on the available information about such Party's exceedance(s) and the methodology set forth in Exhibit E. After Phase 2 is completed, if, due to contract capacity transfers or reductions in capacity, the Pooled Capacity drops to less than two percent (2%) of the total Contract Capacity, a capacity study shall be initiated to evaluate existing facilities for new capacity. The City shall thereafter amend Exhibit B under the process set forth in Section 3.6 to reflect the new Contract Capacity for all Parties. Any changes to the methodology in Exhibit E shall be made pursuant to an Administrative Agreement subject to the Joint Administrative Approval Process described in Section 15. 4.4.3.2 Contract Capacity Transfers — Decreases in Fixed Capacity Components. Beginning in the next fiscal year after the effective date of this Agreement, if a Party can show through an independent report that its Monthly Average Daily Flow, annual average pounds per day of COD, annual average pounds per day of TSS, Incremental Peak Flow, or RSDP is projected to decrease ten percent (10%) or more below their Projected Future Strength and Flow Amounts using data from a minimum of three (3) consecutive prior fiscal years as support, then City shall prepare a proposed amendment to Exhibit B that reflects the new Projected Future Strength and Flow Amounts for all Parties based on such Party's decrease and other relevant information using sound engineering principles and the guidelines set forth in Exhibit E. The City's proposed amendment shall be subject to the Two -Party Approval Process. If approved, the City shall thereafter amend Exhibit B using the process set forth in Section 3.6. 4.4.3.3 If Exhibit B is amended to update one or more Parties' Projected Future Strength and Flow Amounts pursuant to Section 4.4.3.1 or 4.4.3.2, the change in Projected Future Strength and Flow Amounts shall be effective retroactively to the beginning of that fiscal year, and the City shall use the updated amounts in estimating quarterly payments and conducting year-end adjustments for Pure Water Program costs and revenues. Therefore, any Party that underpaid based on prior Exhibit B Fixed Capacity amounts (which were based on prior Projected Future Strength and Flow Amounts) shall pay the retroactive amount due in quarterly installments 24- 10-23-25 4907-3419-6844 Page 36 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda in its quarterly payments the following fiscal year; any Party that overpaid based on previous Exhibit B Fixed Capacity amounts shall receive a credit in quarterly installments in its quarterly payments the following fiscal year. Notwithstanding the preceding sentence, if the retroactive amount due exceeds 20% of a Party's average annual Metro System payments for the previous four (4) fiscal years, such Party may elect to pay the retroactive amount due in its quarterly payments over the subsequent four (4) fiscal years, with interest, based on the most recent quarterly earnings rate of the City's Treasurer's Pooled Rate of Return; any Party that overpaid in an amount that exceeds 20% of their annual average Metro System payments for the previous four (4) fiscal years based shall receive a credit in its quarterly payments spread over the following four (4) fiscal years. 4.5 Monitoring Flow and Strength. 4.5.1 The City shall monitor Flow and Strength. The City shall own and operate as part of the Metro System monitoring devices which will measure the amount of Flow discharged into the Metro System, unless otherwise agreed by the City and a Participating Agency. These devices shall be installed at locations appropriate to accurately monitor Flow and Strength. The City may also monitor Flow and Strength at other locations as it deems appropriate. For all currently unmetered areas, unit counts or agreed upon flow estimates where unit counts are not appropriate shall be used. For adding or subtracting unit count areas, the average current Metro Flow per unit shall be used consistently for all Parties. These unmetered unit counts will be updated at least once every five (5) years. If the flow in an unmetered area is over 0.5 MGD at a specific connection point, then a meter shall be added for that area, if possible. Exhibit F provides the Flow formulas that shall be used to determine the payment obligation for each Party, or a grouping or subgrouping of Parties, as applicable. Exhibit F shall be distributed to all Parties with the budget estimates that are sent annually pursuant to Section 5.7.1. The City currently provides all Participating Agencies with access to their data from the Flow metering devices, including providing access to their raw data, and will continue to do so according to the Parties' established practices on the Effective Date of this Agreement. Changes to Exhibit F may be made upon the City's Administrative Approval. 4.5.2 in measuring Strength, the frequency and nature of the monitoring shall not be more stringent for the Participating Agencies than it is for the City. The frequency, nature, and locations of Strength measurements, as well as the procedures used to determine Strength, shall be reviewed at least once every five (5) years and if changes are appropriate or required, the City may change the Strength measurements subject to the Two -Party Approval process. When conducting sampling within a Participating Agency's service area, the City shall follow appropriate safety and security measures. The City and Participating Agencies will coordinate with the Participating Agency's operations staff to ensure facilities are not negatively impacted by inspections. 4.5.3 The City shall report Strength data to the Participating Agencies at least quarterly. 4.5.4 The City shall notify the Metro JPA's Executive Director and any directly affected Participating Agency within 24 hours of any unpermitted or unlawful discharge or release of effluent from the Metro System which may be reportable to the Regional Board, or any other regulatory agency, and which may result in civil or criminal penalties or administrative 21 - 10-23-25 4907-3419-6844 Page 37 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda enforcement proceedings pursuant to Water Code sections 13251, et seq., section 13300, et seq., Government Code section 54740 et seq., or other provisions of law. Upon request from the Metro TPA or a Participating Agency, City shall provide the Metro JPA or affected Participating Agencies with copies of all non -privileged related correspondence to and from the Regional Board. The City shall endeavor to confer with Metro JPA staff during the report preparation process and before any report is submitted to a regulatory or enforcement agency. 5. FINANCE, BUDGETING, AND ACCOUNTING: SYSTEM OF CHARGES 5.1 Charges Authorized. The City agrees to implement, and the Parties agree to abide by a system of charges called Functional Allocated Billing (FAB). This system allows the City to equitably recover from all Participating Agencies their proportional share of the net Metro System Costs described in this section: 5.2 Functional Allocated Billing (FAD). The City shall annually determine the FAB rate based on the projected Metro System Costs (as defined below) for the forthcoming fiscal year, less all Metro System Revenues (as defined below). 5.2.1 Calculation of FAB Rates. 5.2.1.1 The City shall determine the unit FAB rates by allocating net costs Metro System Costs less Metro System Revenues) between the fixed and measured variable parameters of Capacity Rights, such as Monthly Average Daily Flow, Incremental Peak Flow, COD, TSS, and RSDP as set forth in Exhibit B. These allocations are based on the approved Functional -Design Methodology analyses for sewer system components and estimated Operation and Maintenance (O&M) Costs allocated to each parameter. 5.2.1.2 Beginning one (1) year after substantial completion of the final project of Phase 1 of the Pure Water Program for which sewer revenue funds were used, the City shall have the FAB, which includes the Functional Design Methodology, professionally reviewed at least once every five (5) years. 5.2.1.3 After conducting a professionally developed independent third - party report, the City may propose to change the FAB, including the Functional Design Methodology, to include any other parameter, or modify any term governed by this Section 5.2.1, by way of an Administrative Agreement subject to the Joint Administrative Approval Process set forth in Section 15. However, the City may revise the FAB, including the Functional Design Methodology at any time to include any other measurement required by law after the effective date of this Agreement subject to the City's Administrative Approval, in its sole discretion, City will notify all Participating Agencies of any such review or revision no later than sixty (60) days after City's Administrative Approval. Once approved, the FAB resulting from any review or revision under this Section will become the current approved version until it is revised by a future professional independent third -party study or a change in law. 5.2.1.4 Each of the parameters will have a fixed and variable O&M charge between 0% and 100%. Fixed Capacity Charges will be based on the Contract Capacity in Exhibit B. Variable charges will be based on measured parameters such as Metered Flow, Strength and RSDP. 22- 10-23-25 4907-3419-6844 Page 38 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 5.2.1.5 Costs for capital improvements, capital replacement, and rehabilitation costs including financing shall be based on the approved Functional -Design Methodology and the Contract Capacity in Exhibit B. 5.2.1.6 The net cost allocated to each of the parameters shall be divided by the total Metro System quantity for that parameter to determine the unit rates for each parameter. These unit rates shall apply uniformly to all Parties. 5.3 Metro System Costs. The following shall at a minimum be considered Metro System Costs for purposes of calculating the annual FAB rate: 5.3.1 Except as provided in Section 5.4 (Excluded Costs), the annual Operation and Maintenance Costs and annual costs associated with administration, replacement, annual debt service costs and other periodic financing costs and charges, capital improvement, insurance premiums, claims payments and claims administration costs of the Metro System, including projected overhead, shall be calculated using generally accepted accounting practices to reflect the costs of the Metro System. 5.3.2 Fines or penalties imposed on the City as a result of the operation of the Metro System, unless the fine/penalty is allocated to the City or a Participating Agency as provided in Section 2.5.5. 5.4 Excluded Costs. The following items shall not be considered Metro System Costs for purposes of calculating the annual FAB rate: 5.4.1 Costs related to the City of San Diego's municipal sewer, water (including City Water Utility PWP Costs), and/or stormwater systems as determined by City's reasonable calculations consistent with sound engineering and best management practices.; 5.4.2 Right-of-way charges for the use of public streets of the City or any Participating Agency. The City and the Participating Agencies agree not to impose a right -of- way charge for the use of its public rights -of -way for Metro System purposes; 5.4.3 Capital Improvement Costs or Operations and Maintenance Costs of any non -Metro System facility not included in Exhibit A, including, but not limited to, any costs associated with the ECAWP Project; 5.4.4 Those costs otherwise identified as excluded costs in Section 6.3. 5.5 Metro System Revenues and Allocations. The following revenues shall be at a minimum considered Metro System Revenues for purposes of determining the annual FAB rate: 5.5.1 Any grant or loan receipts or any other receipts that are attributable to the Metro System or Metro System components of the Pure Water Program, including, but not limited to, all compensation or receipts from the sale, lease, or other conveyance or transfer of any asset of the Metro System or Metro System components of the Pure Water Program. Any such receipts attributable to the Metro System components of the Pure Water Program shall be allocated among 10-23-25 4907-3419-6844 Page 39 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda the City and the Participating Agencies in the proportions set forth in Exhibit B Fixed Capacity amounts. 5.5.2 All compensation or receipts from the sale or other conveyance or transfer of any Metro System byproducts, including, but not limited to, gas, electrical energy, sludge products, and Recycled Water produced at the NCWRP and SBWRP and the future Central Area Plant. 5.5.3 Payments by the City's Water Utility for the Capital Expense Rate, as calculated under provisions in Section 6.7. These proceeds shall be allocated among the City and Participating Agencies in the proportions set forth in Exhibit B Fixed Capacity amounts. 5.5.4 Those portions of Repurified Water Revenue attributable to the Metro System, as calculated under provisions in Section 6.6.3. These revenues shall be allocated among the City and Participating Agencies in the proportions set forth in Exhibit B Fixed Capacity amounts. 5.5.5 Any other non -operating revenues, including, but not limited to interest income included in the income credit portion of the annual audit. 5.6 Excluded Revenue. The following revenues shall be excluded from Metro System Revenues for purposes of determining the annual FAB rate: 5.6.1 Proceeds from the issuance of debt for Metro System projects. 5.7 Estimate and Billing Schedule and Year End Adjustment. 5.7.1 The City shall estimate the FAB rates on an annual basis prior to January 15 and provide budget estimates for the upcoming fiscal year to all Parties. The City shall quantify the FAB rates by estimating the quantity of Flow, Strength, and Fixed Capacity Charges for each Party, based on that Party's Metered Flow for the past year and the cumulative data of sampling for Strength constituents such as COD and TSS over the preceding five years and Fixed Capacities set forth in Exhibit B. If the cumulative five-year Strength data is no longer indicative of discharge from a Party, and a Contract Capacity Transfer has been approved pursuant to Sections 4.4.3.1, 4.4.3.2, or 3.2, then the City may eliminate the previous higher readings subject to the City's Administrative Approval. 5.7.2 Prior to March i of each year the City will provide a mid -year review of the current year's Metro System Capital Improvement Costs and Operations and Maintenance Costs and offsetting non -operating revenues such as grant or loan proceeds, including fiscal year-end projections and provide such reviews to the Participating Agencies. 5.7.3 The City shall determine the volume of MBC Return on an annual basis and for billing purposes only. The costs of treating MBC Return shall be allocated to the Parties in proportion to their Metered Flow and Strength. If a Party's Monthly Average Daily Flow plus MBC Return exceeds their Contract Capacity set forth in Exhibit B, it shall not be treated as an exceedance pursuant to Section 4.4.3.1. 24- 10-23-25 4907-3419-6844 Page 40 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 5.7.4 The City shall bill the Participating Agencies quarterly, invoicing on August 1, November 1, February 1 and May 1. Each bill shall be paid within thirty (30) days of mailing. Quarterly payments will consist of the total estimated cost for each Participating Agency, based on their estimated Flow, Strength, and Fixed Capacity Charges, divided by four. 5.7.5 At the end of each fiscal year, the City shall determine the actual Metro System Costs and the actual Metered Flow as well as the cumulative Strength data for the City and each of the Participating Agencies. The City shall make any necessary adjustments to the unit rates for Flow and Strength such as COD, TSS and Fixed Capacity Charges based on actual costs for the year as determined through the annual audit process in Section 5.8.2 of this Agreement. The City shall then recalculate the FAB rate for the year using actual audited costs for the year, actual Metered Flow, Residuals, MBC Return, cumulative Strength factors, and Fixed Capacity Charges for the City and for each Participating Agency. The City shall credit any future charges or bill for any additional amounts due against the quarter after the prior year costs have been audited. 5.8 Financial Statements. 5.8.1 The City shall keep records and accounts of all costs and expenses relating to conveyance, treatment, disposal, and reuse of wastewater, and production of Repurified Water, and the acquisition, planning, design, construction, administration, monitoring, operation and maintenance of the Metro System and Water Repurification System, and any grants, loans, or other revenues received therefor. The City shall keep such records and accounts for at least four (4) years after the completed audit, or for any longer period required by law or outside funding sources. 5.8.2 Annual Audit. Said records and accounts shall be subject to reasonable inspection by any authorized representative of any Participating Agency at its expense. Further, said accounts and records shall be audited annually by an independent certified public accounting firm appointed by the City. A copy of said report shall be available to any Participating Agency. As part of said audit, the actual amount of City Water Utility's PW Costs, Pure Water Program costs attributable to the Metro System, Repurified Water Revenue, and the Capital Expense Rate shall be determined and audited by the City's external auditors and Participating Agency representatives, and a cumulative and annual summary of such amounts shall be included as a footnote or attached to the audit of the Metro System. Cost summaries shall include separate lines for Capital Improvement Costs and Operation and Maintenance Costs. 5.8.3 The City shall make a good faith effort to complete the annual audit, and any related adjustments under this Agreement as described in Section 5.8.2, by the end of the following fiscal year. 5.9 Debt Financing. The City retains the sole right to determine the timing and amount of debt financing required to provide Metro System Facilities. The annual debt service plus in - progress Capital Improvement Costs to maintain capacity in and of the Metro System shall be allocated to the Participating Agencies consistent with the Exhibit B Contract Capacity allocations effective on the date the debt is issued. If a Participating Agency wishes to prepay Capital Improvement Costs, and the City is able to accommodate such a request, then a Participating Agency may prepay their proportional share of Capital Improvement Projects. If a Participating Agency wishes to withdraw or reduce their Flows and/or Strengths from the Metro System per 25- 10-23-25 4907-3419-6844 Page 41 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Section 2.3.3 of this Agreement, such agency will remain responsible for its pro -rata share of all outstanding debt incurred at the time the debt was issued until it is satisfied, irrespective of withdrawal, reduction in Flows and/or Strengths, or Agreement expiration. If the City refunds debt, it shall allocate such refunds consistent with the Exhibit B Contract Capacity allocations effective on the date the debt was issued. 5.10 Allocation of Operating Reserves and Debt Service Coverage. The Parties shall continue to comply with the protocol set forth in Exhibit C, Administrative Protocol on Allocation of Operating Reserves and Debt Service Coverage to Participating Agencies, which exhibit may be amended from time to time consistent with Section 5.11. 5.11 Amending the System of Charges. Except as otherwise provided in Section 5.2.1.6, the Parties may amend any provision in this Section 5 regarding the Finance, Budgeting, and Accounting System of Charges in an Administrative Agreement subject to the Joint Administrative Approval Process set forth in Section 15. FINANCE, BUDGETING, AND ACCOUNTING: PURE WATER PROGRAM COST ALLOCATION AND REVENUES — PHASE I 6.1 North City Water Reclamation Plant Modification. As part of Phase 1 of the Pure Water Program, the City intends to modify the North City Water Reclamation Plant (a Metro System facility) and expand its capacity to 52 MGD. In addition, the City intends to construct the North City Pure Water Facility on a nearby site to produce Repurified Water. This Section sets forth the costs and revenues associated with the Pure Water Program attributable to the Metro System. Exhibit A includes current constructed Metro System facilities and existing and proposed future Phase 1 facilities. 6.2 New, Expanded or Modified Metro System Facilities. Each new, expanded, or modified Metro System facility, which is part of the Pure Water Program, and is used in relation to the production of Repurified Water (in addition to the modification and expansion of the North City Water Reclamation Plant) shall be governed by this Section. 6.3 Costs Excluded from Metro System Costs — Phase 1. All of the following Pure Water Program costs, including Capital Improvement Costs, Operation and Maintenance Costs, and other related costs (including administration, insurance, claims, and overhead) shall be excluded from Metro System Costs for purposes of calculating the annual FAB rate. 6.3.1 General Exclusions: 6.3.1.1 Costs of the Water Repurification System and any Metro System facilities to the extent constructed, modified, expanded, or used for the purpose of treating wastewater beyond secondary treatment (ocean discharge standard under current law). This shall include costs for preliminary treatment, primary treatment, and secondary treatment to the extent such costs are higher than they would otherwise be due to the production of Repurified Water. 6.3.1.2 Costs for fail-safe disposal, if necessary, for design capacity for Repurified Water, including, but not limited to, any costs associated with the reservation of capacity at the Point Loma Wastewater Treatment Plant. 26- 10-23-25 4907-3419-6844 Page 42 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 6.3.1.3 Costs for the demolition or replacement of existing Metro System facilities with similar facilities for the purpose of making space available for Water Repurification System facilities. Such costs may consider the current asset value or market value of the existing Metro System facility. 6.3.2 Cost Exclusions Specific to North City Water Reclamation Plant Improvements: 6.3.2.1 Costs for increased aeration tank volume to the extent the new volume exceeds the amount necessary to provide 52 MGD capacity. Determination of sizing to provide 52 MGD capacity shall be based on the current tank volume necessary to provide 30 MGD capacity. 6.3.2.2 Costs for the methanol feed system. 6.3.2.3 Costs for RSDP disposal, including, but not limited to, pump stations, pipelines, retreatment, ocean outfall, and monitoring. 6.3.2.4 Costs for the use of existing tertiary water filters for Repurified Water purposes. Such costs may consider the depreciated value of such filters or use such other appropriate valuation methods as agreed by the City and authorized representatives of the Metro JPA. Costs under this section shall be reimbursed or credited by City's Water Utility to the Metro System. 6.4 North City Water Reclamation Plant Improvement Costs Included as Metro System Costs. Notwithstanding the above exclusions, the City and the Participating Agencies have specifically agreed that the following Capital Improvement Costs and Operation and Maintenance Costs related to North City Water Reclamation Plant improvements shall be included as Metro System Costs for purposes of calculating the annual FAB rate (and therefore not qualify as City Water Utility PW Costs): 6.4.1 Costs for chemically enhanced primary treatment for up to 52 MGD capacity. 6.4.2 Costs for primary effluent equalization for up to 52 MGD capacity. 6.4.3 Costs for increased volume of aeration tanks that will provide up to, but not exceeding, 52 MGD capacity. 6.4.4 Costs to add secondary clarifier tanks sufficient for up to 52 MGD capacity. 6.4.5 Costs for wastewater conveyance facilities to provide wastewater for replacement of Centrate flows that cannot be treated at the North City Water Reclamation Plant due to the production of Repurified Water. 6.4.6 Costs for treatment and conveyance of all MBC Return (micro -filtration and tertiary backwash) based on Flow, COD, and TSS. 27- 10-23-25 4907-3419-6844 Page 43 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 6.5 Reallocation of PWP Costs incurred since FY 2014. 6.5.1 The allocation of Pure Water Program costs, retroactive to June 30, 2014, will be calculated the year the Agreement goes into effect, will be completed no less than two fiscal years following the production of 30 MGD by Phase I of the Pure Water Program. 6.5.1.1 All the O&M task orders, or costs that cannot be directly assigned to a PWP Phase 1 capital improvement project such as program management, environmental documents, etc., will be reallocated by the final water/wastewater cost split, and will include interest accruing since June 2014 at the interest rate earned by the City of San Diego for each applicable fiscal year as shown by the sample interest calculation included in Exhibit G, Sample of Interest Calculation. This postpones the reconciliation of costs until the substantial completion of all construction projects for Phase 1 (City Water Utility PW Costs and Metro). This reconciliation will be performed during the audit of the fiscal year in which substantial completion of all projects occurs. 6.5.1.2 All Phase 1 PWP CIP projects were bid and awarded by October 2022 which is FY2023. All shared Phase 1 CIP projects will be reallocated to the actual construction cost split once the project is awarded, and the cost loaded CPM is completed and negotiated between the City and the Participating Agencies during the FY2023 audit. All CIP soft costs incurred since 2014 will be reallocated like the O&M task orders during the audit of the year of substantial completion of the actual Phase 1 CIP projects. If interest is owed to the Metro System for soft costs starting in FY 2014, such interest shall be considered Metro System Revenues consistent with Section 5.5.5. 6.6 Revenue Sharing for Repurified Water. 6.6.1 Background. Initially, the Parties anticipate that the cost per acre foot associated with the production of Repurified Water will be more expensive than the cost per acre foot of untreated imported water. However, it is anticipated that Repurified Water produced under Phase I will be less expensive than untreated imported water sometime in the future. Once Repurified Water produced under Phase 1 becomes less expensive than the cost of untreated imported water, the Parties agree that there will be revenue from the Pure Water Program. 6.6.2 Calculation. Revenue sharing shall occur in each fiscal year during which the annual cost per acre foot associated with the production of Repurified Water is less than the cost of untreated water per acre foot from the San Diego County Water Authority ("CWA"). The annual cost difference shall be known as "Repurified Water Revenue." Repurified Water Revenue shall be determined as follows: 28- 10-23-25 4907-3419-6844 Page 44 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Annual cost per acre foot of CWA untreated water purchased by the City for delivery at Miramar Reservoir (which shall be determined based on the total costs for water actually billed to the City by CWA for water delivered at Miramar Reservoir in a fiscal year, divided by the number of acre-feet of CWA water delivered at Miramar Reservoir that year) less Annual cost per acre-foot of City Water Utility PW Costs (which shall be determined based on total annual City Water Utility PW Costs divided by the number of acre-feet of Repurified Water actually produced in that year) the result of which is multiplied by The number of acre feet of Repurified Water produced by Pure Water Program facilities during the applicable fiscal year. Exhibit H, Summary of Billings from County Water Authority Showing Costs for Untreated Water, is a summary of the most recent CWA rate structure and cost allocations to the City of San Diego for untreated water. The Parties agree that Exhibit H shall be referred to by the Parties in the future in determining how costs for water delivered at Miramar Reservoir are calculated. If no untreated water is delivered at Miramar Reservoir in a given year, then the closest point of delivery of untreated water to the City shall be used. The City shall annually update Exhibit H to reflect the most recent CWA rate structure and cost allocations to the City of San Diego. The City shall estimate whether there will be Repurified Water Revenue in the upcoming fiscal year prior to January 15 of each year, and these amounts shall be incorporated into the budget estimates for the upcoming fiscal year to all Parties. 6.6.3 Revenue Sharing. Repurified Water Revenue shall initially be shared between the City's Water Utility and the Metro System based on the relative actual Capital Improvement Costs for the Pure Water Program contributed by City's Water Utility and the Metro System. Such Capital Improvement Cost contributions are currently estimated as 62% City's Water Utility and 38% Metro System. The Metro System's portion of the Repurified Water Revenue shall be applied to debt attributable to the Metro System first, until the debt attributable to the Metro System is fully paid. Following full payment of debt attributable to the Metro System, Repurified Water Revenue shall be shared based on the relative actual Operation and Maintenance Costs for Pure Water Program facilities contributed by City's Water Utility and the Metro System, calculated annually. Such Operation and Maintenance Costs are currently estimated as 76% City's Water Utility and 24% Metro System on an annual basis. 29- 10-23-25 4907-3419-6844 Page 45 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda In all instances referred to in this Section 6.6.3, the Metro System portion of the Repurified Water Revenue shall be allocated among the City and the Participating Agencies consistent with Section 4.4.2. 6.6,4 Year -End Adjustment. At the end of each fiscal year during which there is Repurified Water Revenue, the City shall determine the actual cost per acre foot of CWA untreated water purchased by the City, the actual cost per acre foot of City Water Utility PW Costs, and the actual amount of Repurified Water produced at Pure Water Program facilities. Based on the actual cost and production information, the City will recalculate the Repurified Water Revenue for the prior fiscal year. The City will credit any future charges or bill for any additional amounts due the quarter after the prior year costs have been audited. 6.6.5 Change in Potable Reuse Method. The Parties acknowledge that the Pure Water Program Phase 1 will initially use indirect potable reuse surface water augmentation. The use of CWA untreated water costs in calculating Repurified Water Revenue is intended to provide an appropriate point of comparison to costs for producing Repurified Water that will be introduced into surface water. The Parties agree that if the City desires to implement direct potable reuse (in which Repurified Water would be introduced directly into a water supply pipeline or facility), the Parties shall meet and negotiate in good faith regarding an amendment to this Section 6.6, to appropriately update the formula for Repurified Water Revenue, which form of amendment shall occur via an Administrative Agreement and shall be subject to the Joint Administrative Approval Process set forth in Section 15. 6.7 Capital Expense Rate. 6.7.1 Background. The Point Loma Wastewater Treatment Plant operates under a National Pollutant Discharge Elimination System ("NPDES") permit modified under section 301(h) & (j)(5) of the Clean Water Act. If such modified permit were ever revoked or not renewed, the Parties agree that, under current law, the City would have an obligation to upgrade the PLWTP to secondary treatment. The Parties further agree that $1.8 billion is a fair and comprehensive estimation of the costs that could be incurred by the Metro System to meet the legal requirements related to the Metro System under current law. The estimate of $1.8 billion is based on the net present value of the capital cost to develop 180 MOD of secondary treatment at PLWTP as of November 15, 2018. Therefore, the Parties agree that $1.8 billion represents the maximum amount of Capital Improvement Costs that the Metro System should be obligated to contribute to the Pure Water Program, the purpose of which is not solely the disposal of wastewater, but also the production of Repurified Water, The Parties agree that this $1.8 billion maximum contribution should apply whether or not the PLWTP is actually upgraded to secondary treatment to meet legal requirements in the future because, as of the date of the Agreement, the Parties have the option of upgrading the PLWTP to full secondary treatment for the cost of approximately $1.8 billion. In light of the above, the Parties have agreed that if Metro System costs related to the Pure Water Program exceed the $1.8 billion, City's Water Utility will pay a charge for each acre foot 30- 10-23-25 4907-3419-6844 Page 46 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda of secondary treated effluent produced by Metro System facilities and used for the production of Repurified Water. 6.7.2 Capital Expense Rate. Under the circumstances described in this Section 6.7, City's Water Utility shall pay a charge ("Capital Expense Rate") for each acre-foot of secondary treated effluent produced by Metro System facilities and used for the production of Repurified Water. The Capital Expense Rate costs or revenues attributable to the Metro System shall be assessed or credited consistent with Section 4.4.2. City's Water Utility shall pay the Capital Expense Rate if the following costs alone, or in combination, exceed $1.8 billion (which amount shall be adjusted for inflation): 6.7.2.1 The sum of all Capital Improvement Costs and associated debt attributable to the Metro System components of the Pure Water Program under this Section 6.7.2; and/or 6.7.2.2 The sum of all Capital Improvement Costs and associated debt for the full or partial upgrading of the PLWTP to secondary treatment. Notwithstanding the above, the Capital Expense Rate shall not apply if the PLWTP is actually upgraded to secondary treatment (or beyond) due to: (a) a change in federal or state statutory law making it necessary to upgrade the PLWTP to comply with such new discharge standard; or (b) a final decision by a state or federal court or a federal administrative agency of competent jurisdiction that an NPDES permit modified under section 301(h) & G)(5) of the Clean Water Act is thereby revoked or denied renewal due to a finding that the discharge from the PLWTP violates anti -degradation rules or regulations promulgated under section 403 of the Clean Water Act. 6.7.3 Calculation of Capital Expense Rate. The amount per acre-foot of the Capital Expense Rate shall be determined as follows: The sum of all Capital Improvement Costs and associated debt attributable to (i) the Metro System components of the Pure Water Program under this Section 6 and (ii) upgrading of the PLWTP to secondary treatment (if any) less 1.8 billion, as adjusted for inflation each July 1 (starting on July 1, 2019) to reflect the annual percentage change in the Engineering News Records — Los Angeles construction cost index the result of which is multiplied by 1.42 (which estimates the total interest on a 30 -year State Revolving Fund loan with an interest rate of 2.5%) the result of which is divided by 31- 10-23-25 4907-3419-6844 Page 47 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda The total number of acre feet per year of secondary treated effluent that is expected to be produced by Metro System facilities for the production of Repurified Water over a period of thirty (30) years. The City shall estimate whether the Capital Expense Rate shall apply to the upcoming fiscal year (and its amount) prior to January 15 of each year, and the estimated amount of the Capital Expense Rate shall be effective on July 1 of the upcoming fiscal year. For purposes of this Section 6.7.3, Capital Improvement Costs and associated debt shall include such costs and revenue incurred by the Metro System prior to the effective date of the Agreement. 6.7.4 Year -End Adjustment. At the end of each fiscal year during which the Capital Expense Rate applies, the City shall determine the actual Capital Improvement Costs and associated debt attributable to the Metro System components of the Pure Water Program under this Section 6 and any upgrading of the PLWTP to secondary treatment, and the actual amount of secondary treated effluent produced by Metro System facilities and used for the production of Repurified Water. Based on the actual cost, interest, and effluent information, the City will recalculate the Capital Expense Rate for the prior fiscal year. The City will credit any future charges or bill for any additional amounts due the quarter after the prior year costs have been audited. 6.7.5 Duration, Expiration. The Capital Expense Rate shall continue until the cost difference between (a) the actual sum of Pure Water Program Capital Improvement Costs and associated debt attributable to the Metro System under Section 6.7 and/or the costs to upgrade the PLWTP and (b) $1.8 billion (as adjusted for inflation), has been fully paid, or the Agreement expires, whichever is sooner. Notwithstanding, it is the express intent and desire of the City and the Participating Agencies that if the Agreement expires before the cost difference has been paid through the Capital Expense Rate, that the Capital Expense Rate continue in any extension of this Agreement negotiated by the Parties pursuant to Section 14.2 until the cost difference has been fully paid. 6.8 Amending Pure Water Program Cost Allocation and Revenues — Phase 1. Except as otherwise provided in Section 6.6.2, the Parties may amend any provision in this Section 6 regarding the Finance, Budgeting, and Accounting for the Pure Water Program Cost Allocation and Revenues for Phase 1 in an Administrative Agreement subject to the Joint Administrative Approval Process set forth in Section 15, 7. FINANCE, BUDGETING, AND ACCOUNTING: PURE WATER PROGRAM COST ALLOCATION AND REVENUES — PHASE 2 7.1 Pure Water Program — Phase 2. The Second Phase of the Pure Water Program Phase 2") shall create up to an additional 53 MGD of Repurified Water at Phase 2 facilities. The Parties agree to incorporate all terms relating to Phase 2 into this Agreement through an Administrative Agreement subject to the Joint Administrative Approval Process set forth in Section I5, subject to the requirements set forth in this Section 7 below. 32- 10-23-25 4907-3419-6844 Page 48 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 7.2 Costs Excluded As Metro System Costs. Costs Excluded from Metro System Costs for Phase 2 shall be identified in an Administrative Agreement subject to the Joint Administrative Approval Process and approvals set forth in Section 15. However, the Administrative Agreement must reflect that all of the following PWP Phase 2 costs, including Capital Improvement Costs, Operation and Maintenance Costs, and other related costs (including administration, insurance, claims, and overhead) shall be excluded from Metro System Costs for the purposes of calculating the annual Phase 2 FAR rate, and shall be City Water Utility PW Costs: 7.2.1 Costs of the Phase 2 Water Repurification System and any Metro System facilities to the extent constructed, modified, expanded, or used for the purpose of treating water beyond secondary treatment (ocean discharge standard under current law). This shall include costs for preliminary treatment, primary treatment, and secondary treatment to the extent such costs are higher than they would otherwise be due to the production of Phase 2 Repurified Water. 7.2.2 Costs for fail-safe disposal, if necessary, for design capacity for Phase 2 Repurified Water, including, but not limited to, any costs associated with the reservation of capacity at the Point Loma Wastewater Treatment Plant. 7.2.3 Costs for the demolition or replacement of existing Metro System facilities with similar facilities for the purpose of making space available for Phase 2 Water Repurification System facilities. Such costs may take into account the current asset value or market value of the existing Metro System facility. 7.2.4 Costs for the Phase 2 methanol feed system. 7.2.5 Costs for Phase 2 RSDP disposal including, but not limited to, pump stations, pipelines, retreatment, ocean outfall, and monitoring. 7.2.6 50% of the costs for the MBR Tanks and system for Phase 2. 7.2.7 All membrane integrity monitoring systems for Phase 2. 7.2.8 All Phase 2 systems downstream of MBR's. 7.3 Revenue Sharing for Repurified Water — Phase 2. Terms regarding revenue sharing for Repurified Water for Phase 2 shall be identified in an Administrative Agreement subject to the Joint Administrative Approval Process set forth in Section 15. However, this Administrative Agreement must reflect terms related to Phase 2 revenue sharing for Repurified Water that conceptually mimic those terms set forth in Section 6.6. The Metro System portion of the Repurified Water Revenue for Phase 2 shall be allocated among the City and the Participating Agencies consistent with Section 4.4.2, as may be amended or updated to account for changes in PWP Phase 2. 7.4 Capital Expense Rate --- Phase 2. Terms regarding the Capital Expense Rate for Phase 2 shall be identified in an Administrative Agreement subject to the Joint Administrative Approval Process and approvals set forth in Section 15. However, this Administrative Agreement 33- 10-23-25 4907-3419-6844 Page 49 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda must reflect terms that conceptually mimic the terms in Section 6.7, reflecting a continuation of the Capital Expense Rate through Phase 2 up until the PWP achieves up to 83 MGD of Repurified Water, taking into account production of water suitable for potable reuse occurring at all treatment processes for wastewater upstream from and at the PLWTP. The Pure Water Program Capital Expense Rate costs or revenues attributable to the Metro System shall be assessed or credited consistently with Section 4.4.2, as may be amended or updated to account for changes in PWP Phase 2. 8. FUTURE NEGOTIATIONS AND COOPERATION This Agreement specifically contemplates Phase l and Phase 2 of the Pure Water Program, which consists of new, expanded, or modified Metro System and Water Repurification System facilities projected to produce up to 83 million gallons per day of Repurified Water. The Parties intend to meet and negotiate in good faith regarding the referenced Administrative Agreements identified in this Agreement. All items outside the scope of the Joint Administrative Approval Process shall be negotiated by the Parties through the amendment processes described in Section 16.3, if necessary. 9. THE METRO COMMISSION 9.1 Establishment and Membership. The 1998 Agreement created and established and the ARA reestablished) the Metro Commission as a commission consisting of one representative from each Participating Agency. On October 25, 2000, the Participating Agencies entered into a Joint Exercise of Power Agreement which created a separate public entity, the Metro Wastewater Joint Powers Authority ('Metro .IPA"), for the purpose, among others, of taking responsibility, actions, and making decisions pertaining to the 1998 Agreement on behalf of the Participating Agencies. The Metro Commission and the Metro JPA are and shall hereinafter be treated as one and the same entity for all intents and purposes under this Agreement, including for the purpose of accepting and executing the responsibilities delegated to the Metro JPA in this Agreement. Each Participating Agency shall have the right to appoint a representative of its choice to the Metro Commission/Metro JPA, and the Participating Agency's appointee to the Metro Commission shall also serve as that Participating Agency's representative on the Metro JPA Board of Directors. If a Participating Agency is a dependent district whose governing body is that of another independent public agency, that Participating Agency shall be represented on the Metro Commission/Metro JPA by a representative appointed by the governing body which shall have no more than one representative no matter how many Participating Agencies it governs. Each member has one vote in any matter considered by the Metro Commission/Metro JPA. The Metro Commission/Metro JPA shall establish its own meeting schedule and rules of conduct. The City may participate in the Metro Commission on an ex officio, non -voting basis. To the extent this Agreement expands or amends the powers or purposes set forth in the Metro JPA Joint Exercise of Powers Agreement, the Participating Agencies expressly agree to such expansion or amendment consistent with the terms of this Agreement. 9.2 Advisory Responsibilities of Metro JPA. 9.2.1 The Metro JPA shall act as an advisory body to the Mayor and City Council on policy issues and matters affecting and relating to the Metro System and shall be included in 34- 10-23-25 4907-3419-fi l44 Page 50 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda the City's list of boards and commissions on the City's website. The City shall present the position of the majority of the Metro JPA to the City's governing body in written staff reports. The Metro JPA may prepare and submit materials in advance and may appear at any City hearings on Metro System matters and present its position to the governing body of the City. 9.2.2 The Metro JPA may advise the City of its position on any issue relevant to the Metro System. 9.3 Delegation of Decision -Making Authority of the Metro JPA. The Participating Agencies hereby delegate to the Metro JPA the authority to take certain actions pursuant to the approval processes provided in this Agreement, as permitted by law, including but not limited to Government Code 6506. The Participating Agencies agree that the Metro JPA has delegated authority to approve Administrative Agreements on behalf of each Participating Agency pursuant to the process set forth in Section 15. The Participating Agencies agree and acknowledge that the Metro JPA has authority to bind each Participating Agency to Administrative Agreements through the Joint Administrative Approval Process. All Participating Agencies agree to promptly execute Administrative Agreements after approval by the Metro JPA. By signing this Agreement, each Participating Agency is expressly preapproving such actions. 9.4 Standing. If a dispute arises among the Parties relating to or arising from a Party's obligation under this Agreement or an associated Administrative Agreement, the Metro JPA shall have standing to enforce the terms of this Agreement against the City on behalf of two or more Participating Agencies if a majority of the Metro JPA votes to take action relating to this Agreement on behalf of two or more Participating Agencies. 10. DISPUTE RESOLUTION This Section governs all disputes arising out of this Agreement and any associated Administrative Agreements. 10.1 Mandatory Non -Binding Mediation. If a dispute arises among the Parties relating to or arising from a Party's obligations under this Agreement or an associated Administrative Agreement that cannot be resolved through informal discussions and meetings, the Parties involved in the dispute shall first endeavor to settle the dispute in an amicable manner, using mandatory non -binding mediation under the rules of JAMS, AAA, or any other neutral organization agreed upon by the Parties before having recourse in a court of law. Mediation shall be commenced by sending a Notice of Demand for Mediation to the other Party or Parties to the dispute. A copy of the notice shall be sent to the City, all other Participating Agencies, and the Metro JPA. 10.2 Selection of Mediator. A single mediator that is acceptable to the Parties involved in the dispute shall be used to mediate. The mediator will be knowledgeable in the subject matter of this Agreement, if possible, and chosen from lists furnished by JAMS, AAA, or any other agreed upon mediator. 10.3 Mediation Expenses. The expenses of witnesses for either side shall be paid by the Party producing such witnesses. All mediation costs, including required travel and other expenses 35- 10-23-25 4907-3419-6844 Page 51 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda of the mediator, and the cost of any expert advice produced at the direct request of the mediator, shall be Metro System costs. 10.4 Conduct of Mediation. Mediation hearings will be conducted in an informal manner. Discovery shall not be allowed. The discussions, statements, writings and admissions and any offers to compromise during the proceedings will be confidential to the proceedings (pursuant to California Evidence Code sections 1115 - 1128 and 1152) and will not be used for any other purpose unless otherwise agreed by the Parties in writing. The Parties may agree to exchange any information they deem necessary. The Parties involved in the dispute shall have representatives attend the mediation who are authorized to settle the dispute, though a recommendation of settlement may be subject to the approval of each agency's boards or legislative bodies. Either Party may have attorneys, witnesses or experts present. 10.5 Mediation Results. Any resultant agreements from mediation shall be documented in writing. The results of the mediation shall not be final or binding unless otherwise agreed to in writing by the Parties. Mediators shall not be subject to any subpoena or liability and their actions shall not be subject to discovery. 10.6 Performance Required During Dispute. Nothing in this Section shall relieve the City and the Participating Agencies from performing their obligations under this Agreement. The City and the Participating Agencies shall be required to comply with this Agreement, including the performance of all disputed activity and disputed payments, pending the resolution of any dispute under this Agreement. 11. INSURANCE 11.1 City Shall Maintain All Required Insurance. 1 1.1.1 Throughout the term of this Agreement the City shall procure and maintain in effect liability insurance covering Metro System assets and operations in the same manner, and to the same extent, as the City insures similar assets and operations of the City. Such insurance may be provided through separate policies for the Metro System, or by consolidating the Metro System with other City assets and operations for insurance purposes. If the Metro System is insured separately, policy limits, deductibles, and self -insured retentions shall be equivalent to what the City procures for other similar City assets and operations. The City shall maintain all insurance required by law, including workers' compensation insurance, and may self -insure for certain losses when allowed by law. The proportionate cost of insurance for the Metro System shall be included in the computation of the FAB. 11.1.2 If the Metro System is insured separately, any policy or policies of liability insurance carried by the City for the Metro System shall name the Participating Agencies as additional insureds with evidence of same supplied to each upon request. 11. 1.3 Upon request by the Metro .IPA or a Participating Agency, the City shall promptly provide written coverage and policy information, including, but not limited to, the scope of coverage, policy limits, deductibles, and self -insured retentions, including information on any claims made against the policies and remaining limits and deductibles. 36- 10-23-25 4907-3419-6844 Page 52 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 11.2 Substantially Equivalent Coverage. In the event of a transfer of the Metro System to a nonpublic entity pursuant to Section 2.1, coverage substantially equivalent to all the above provisions shall be maintained by any successor in interest. 12. INTERRUPTION OF SERVICE Should the Metro System services to the Participating Agencies be interrupted as a result of a major disaster, by operation of federal or state law, or other causes beyond the City's control, the Participating Agencies shall continue all payments required under this Agreement during the period of interruption. 13. NOTICES REQUIRED UNDER AGREEMENT The City and each Participating Agency shall give notice when required by this Agreement. All notices required by this Agreement must be in writing and must be sent via email and either served personally or mailed via first class U.S. mail, The notices shall be sent to the officer listed for each Party, at the address and email address listed for each Party in Exhibit D, Notice Listing, in accordance with this Section. If a Party wishes to change the officer and/or address to which notices are given, the Party shall notify all other Parties in accordance with this Section. Upon such notice, the City shall amend Exhibit D to reflect the changes. The amendment shall be made within sixty (60) days after receipt of the Party's notice regarding the change in officer and/or address. The City shall keep an updated version of Exhibit , notated with the most recent amendment date, on file with the City Public Utilities Department. The City shall provide a copy of the amended Exhibit D to all Parties by no later than sixty (60) days after amending Exhibit D. 14. EFFECTIVE DATE AND EXPIRATION 14.1 Effective Date. This Agreement shall be effective on July 1 of the fiscal year commencing after execution by the City and all of the Participating Agencies and shall be dated as of the signature date of the last executing Party. For example, irrespective of whether the last executing Party signs this Agreement on September 1, 2025, January 1, 2026, or June 30, 2026, the effective date of the Agreement would be July 1, 2026. 14.2 Expiration. Subject to the rights and obligations set forth in Section 14.3, unless amended, replaced, or terminated earlier by mutual consent of all the Parties, this Agreement shall expire on June 30, 2065. This Agreement is subject to extension by agreement of the Parties. The Parties shall commence discussions on an agreement to provide wastewater treatment services beyond the year 2065 on or before December 31, 2055, or at such time, if any, that the PLWTP is required to be upgraded to secondary treatment. The Parties may create, amend or terminate any associated Administrative Agreements addressing implementation of this Agreement, as provided in this Agreement. 14.3 Contract Capacity Rights Survive Expiration. The Participating Agencies' Contract Capacity rights and rights to obtain wastewater treatment services from the facilities referred to in, or constructed pursuant to this Agreement shall survive the expiration of the Agreement. Provided, however, for any Participating Agency to exercise such rights, the Participating Agency shall comply with all the following requirements: (a) provide at least six months' written notice prior to the expiration of this Agreement; (b) upon expiration of this Agreement, pay their proportional 37- 10-23-25 4907-3419-6844 Page 53 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda share of Metro System Costs according to the billing methodologies set forth in this Agreement in order to maintain their right(s) to such wastewater treatment services; and (c) agree to recalculate and pay proportional share of future Metro System Costs based on the City's and all remaining Participating Agencies' proportionate shares. In the event this Agreement expires and one or more Participating Agency(ies) continue to pay their proportional share of all Metro System Costs, the City shall have the right to continue managing, operating, and expanding the Metro System subject to the same terms set forth in this Agreement, unless otherwise agreed to in writing by and between the City and a Participating Agency. In the event one or more Participating Agency(ies) exercise its/their right(s) to maintain Contract Capacity and wastewater treatment services, such Participating Agency(ies) shall also maintain the right to continue receiving any and all revenues contemplated by this Agreement, including, but not limited to, Metro System Revenues. 14.4 Abandonment. After June 30, 2065, the City may abandon operation of the Metro System upon delivery of notice to the Participating Agencies ten (I0) years in advance of said abandonment. Upon notice by the City to abandon the Metro System, the Parties shall meet and confer over the nature and conditions of such abandonment. In the event the Parties cannot reach agreement, the matter shall be submitted to mediation under Section 10. In the event of abandonment, the City shall retain ownership of all Metro System assets free of any claim of the Participating Agencies. Abandonment by the City with continued operation by a different entity shall not terminate or affect a Contract Capacity rights of a Participating Agency so long as that Participating Agency has continued to pay their proportional share of Capital Improvement Costs and Operation and Maintenance Costs according to the billing methodologies set forth in this Agreement. Nothing in this language shall be construed to require the City to continue as operator of the Metro System after the ten-year (10) notice period has run. 15. ADMINISTRATIVE AGREEMENTS 15.1 Use and Process for Administrative Agreements. 15. 1.1 Purpose. Administrative Agreements are intended to implement the intent of the Parties in an efficient and effective manner without reopening or renegotiating the terms of this Agreement. Administrative Agreements are limited to addressing issues that are authorized by this Agreement. Administrative Agreements are separate and distinct from Exhibits to this Agreement, and are designed to address procedural, operational, technical, and administrative issues. Terms in this Agreement may only be modified through the Joint Administrative Approval Process if this Agreement expressly authorizes the use of an Administrative Agreement. 15.1.2 AmendmentsSupplements. or Successors to Administrative Agreements. Where this Agreement refers to an Administrative Agreement, such reference shall include any amendment(s) to that Administrative Agreement or supplemental or successor Administrative Agreement(s). 15.1.3 Function. Administrative Agreements are made among all the Parties but deal with a specific function or group of like functions, for the benefit of regional wastewater treatment within the Metro System, or for the implementation of this Agreement. 38- 10-23-25 4907-3419-6844 Page 54 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 15.1.4 Current Agreements. The Administrative Agreements which are approved and executed simultaneously with the execution of this Agreement are listed Exhibit I, List of Administrative Agreements. The City shall update Exhibit I each time an Administrative Agreement is approved, amended, revised or terminated pursuant to this Agreement. 15.1.5 Development and Joint Administrative Approval Process. Any Party can present an Administrative Agreement, or an amendment or supplement thereto, or termination thereof, to the City for approval by way of the Joint Administrative Approval Process set forth in this Section. The City will endeavor in good faith to respond within 60 days of submission of a proposed Administrative Agreement. If the City needs additional time to evaluate the proposed Administrative Agreement, it will advise all Participating Agencies in writing of the anticipated review time. Once an Administrative Agreement receives City's Administrative Approval, then, with respect to the Participating Agencies, the proposed Administrative Agreement may be presented to the Metro JPA at a duly noticed meeting for review and a first reading. Sixty (60) days or more after the first reading, after the Metro JPA Directors have had opportunity to consult with their respective agency staff and governing boards, the Administrative Agreement may be presented at a duly noticed meeting for a second reading and approved upon an affirmative vote by no less than two-thirds of the members of the Metro JPA during a duly noticed public meeting in other words, upon the affirmative vote of at least eight or more of the twelve members of the Metro JPA, irrespective of how many Metro JPA Directors are present at the meeting, unless the number of Participating Agencies changes). If the second reading does not occur within One Hundred and Twenty (120) days after the first reading, the proposed Administrative Agreement shall no longer be taken into consideration, unless the City and the Metro JPA Directors agree to a different timeline. An Administrative Agreement, amendment thereto, or termination thereof, must receive City's Administrative Approval and at least a two -third affirmative vote by the Metro JPA Directors before it can become effective. Administrative Agreements are binding contracts as against the City and all Participating Agencies, irrespective of whether or not any Participating Agency's particular Metro JPA Director voted to approve the agreement or not, or was absent or abstained. The Metro JPA has the authority to bind the Participating Agencies to Administrative Agreements pursuant to the delegated authority provided to the Metro JPA in Section 9.3 herein. 16. GENERAL 16.1 Exhibits. 16.1.1 Exhibit List. This Agreement references Exhibits A through J. Each exhibit is attached to this Agreement and is incorporated herein by reference. All exhibits to this agreement shall be listed in Exhibit J, Exhibit List. The City shall update the Exhibit List from time to time each time an Exhibit is amended or revised pursuant to this Agreement. 16.2 Electronic Exhibits and Attachments. Acknowledgement and Acceptance: The Parties hereby acknowledge and agree that the exhibit(s) and attachment(s) related to this Agreement, or any of its associated Administrative Agreements, indicated as an Electronic Exhibits above (collectively, the "Electronic Exhibits") may be in an electronic format that cannot be readily or accurately converted into a physical or printed form. The Parties expressly agree that such Electronic Exhibits shall nonetheless be deemed to be valid and enforceable attachments to this Agreement and shall be incorporated by reference as if fully set forth herein. 39- 10-23-25 4907-3419-6844 Page 55 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 16.2.1 Identification and Access: All Electronic Exhibits shall bear the same Exhibit identifier and name (i,e., Exhibit A — Metro Facilities) set forth in the Exhibit List, and shall be clearly identified as an Electronic Exhibit in the Exhibit List, including a file name, a time stamp of file, and a note indicating the software used to open and view the file, including version. The Electronic Exhibit shall be loaded on to a CD-ROM, DVD-ROM, or other electronic storage medium that is a write -once medium without the ability to further edit. Each Party shall receive an identical copy of the Electronic Exhibit(s) via identical storage mediums. The City shall ensure that all Participating Agencies have full and unrestricted access to Electronic Exhibits for the duration of the Agreement and any applicable retention period thereafter, including by providing access to any necessary software, applications, or systems required to view, interact with, or manipulate the Electronic Exhibits in their native format; such as through website access via the GIS Online platform: https://sandiego.maps.arcgis.com. No interaction or manipulation of any Electronic Exhibit shall in any way constitute a bona fide change or amendment to the Electronic Exhibit. 16.2.2 Storage and Security: Each Party shall be responsible for securely storing and maintaining the integrity of the Electronic Exhibits in their possession or control. This includes, but is not limited to, implementing and maintaining reasonable and appropriate technical, administrative, and physical safeguards to protect the confidentiality, availability, and integrity of the Electronic Exhibits, and to prevent unauthorized access, disclosure, alteration, or destruction thereof. 16.2.3 Authentication and Admissibility: The Parties hereby stipulate and agree that the Electronic Exhibits shall be deemed to be original documents and authentic for all purposes under applicable law, and that the Parties may rely upon and introduce such Electronic Exhibits as evidence in any proceeding arising out of or relating to this Agreement, without the need for further foundation, authentication, or certification. 16.2.4 Receipt and Completeness: Each Party hereby acknowledges and confirms that they have received, reviewed, and had a reasonable opportunity to inspect all Electronic Exhibits that are attached to and incorporated into this Agreement as of the Effective Date. By executing this Agreement, each Party represents and warrants that, to the best of their knowledge, the Electronic Exhibits are complete, accurate, and free from material errors, omissions, or defects. The Parties further agree to notify the other Party promptly upon discovering any discrepancies or inaccuracies in the Electronic Exhibits, and to cooperate in good faith to resolve any such issues in a timely manner. 16.2.5 Amendments and Modifications to Electronic Exhibits: Any amendments or modifications to the Electronic Exhibits shall be made in accordance with the procedures set forth in this Agreement for amending or modifying the terms and conditions hereof, and any such amended or modified Electronic Exhibits shall be deemed to replace and supersede any prior version thereof. Amended Electronic Exhibits shall also be loaded onto a new and separate CD- ROM, DVD-ROM, or other electronic storage medium that is a write -once medium without the ability to further edit. Each Party shall receive identical copies of the Electronic Exhibits via identical storage mediums. Amended Electronic Exhibits shall bear identical Exhibit Identifiers as their predecessor exhibits, but with a different suffix (for example, Exhibit A, when amended, shall be identified as Exhibit A-1, a subsequent amendment shall be identified as Exhibit A-2, etc.). 40- 10-23-25 4407-3414-6844 Page 56 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 16.3 Amendments to Agreement. There shall be four (4) ways to amend, modify, and/or change the terms set forth in this Agreement: 16.3.1 Amendments. Except as set forth in Sections 16.3.2, 16.3.3, and 16.3.4, amendments to this Agreement require the approval of all Parties. Such amendments must be in writing and signed by a duly authorized representative from each Party. Unless specifically referenced as being subject to one of the approval mechanisms set forth in Sections 16.3.2, 16.3.3, or 16.3.4 below, any amendment, modification, and/or changes to the terms of this Agreement must occur pursuant to this Section 16.3.1. This provision controls over all other provisions in this Agreement. 16.3.2 Joint Administrative Approval Process. As set forth in this Agreement, the Joint Administrative Approval Process requires the approval described in Section 15.1.5. The following actions may be taken subject to the Joint Administrative Approval Process: a) Agreements for New Contract Capacity as specifically set forth in Section 3.3 b) Addition of new Metro Facilities or conversion of City facility to a Metro facility as specifically set forth in Section 4.2 c) Changes to Exhibit E (Methodology for Contract Capacity Transfers) d) Revisions to FAB as specifically set forth in Section 5.2.1.3, except as provided therein e) Changes to Finance, Budgeting, and Accounting System of Charges as specifically set forth in Section 5.11 f) Changes to Costs Excluded from Metro System Costs -- Phase 1 as specifically set forth in Section 6.3 g) Amending the formula for Repurified Water Revenue as specifically set forth in Section 6.6.2 h) Changes to Finance, Budgeting, and Accounting for the Pure Water Program Cost Allocation and Revenues for Phase I as specifically set forth in Section 6.8 i) Certain terms relating to Phase 2 as specifically set forth in Section 7.1 j} Changes to Costs Excluded from Metro System Costs — Phase 2 as specifically set forth in Section 7.2 k) Terms regarding revenue sharing for Repurified Water for Phase 2 as specifically set forth in Section 7.3 41- 10-23.25 4907-3419-6844 Page 57 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 1) Terms regarding the Capital Expense Rate for Phase 2 as specifically set forth in Section 7.4 m) Creation, changes, amendments, modifications to, or terminations of any Administrative Agreements as specifically set forth in Article 15. 16.3.3 Two -Party Approval. As set forth in this Agreement, Two -Party Approval requires the City's Administrative Approval and a two-thirds (2/3) vote or greater of the Metro JPA Directors present at a duly noticed Metro JPA public meeting. The following actions may be taken subject to Two -Party Approval: a) Determinations regarding liability as specifically set forth in Section 2.5.5 b) Contract Capacity Transfers — Decreases as specifically set forth in Section 4.4.3.2 c) Changes to Strength measurements as specifically set forth in Section 4.5.2 16.3.4 City Administrative Approval. As set forth in this Agreement, the City's Administrative Approval requires discussion, evaluation, and approval by the Director of the City of San Diego's Public Utilities Department or their designee. The City may, in the City's sole discretion, refer a decision subject to the City's Administrative Approval to the City Council for a recommendation, approval, or other action. No action is required on the part of a Participating Agency. The following actions may be taken subject to the City's Administrative Approval: a) Transfers of Contract Capacity as specifically set forth in Section 3.2 b) Reductions in Metro System Capacity as specifically set forth in Section 3.4 c) Amending Exhibit B as specifically set forth in Section 3.6 d) Amending Exhibit A as specifically set forth in Section 4.2 e) Contract Capacity Transfers — Increases as specifically set forth in Section 4.4.3.1 f) Changes to Exhibit F (Metro System Flow Formulas and Sampling Locations) as specifically set forth in Section 4.5.1 g) Changes to FAB to include measurements required by law as specifically set forth in Section 5.2.1.3 42- 10-23-25 4907-3419-6844 Page 58 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda h) Changes to Exhibit H if CWA changes their rate structure as specifically set forth in Section 6.6.2 i) Changes to Exhibit D (Notice) as specifically set forth in Section 13. 16.4 Construction of Agreement. 16.4.1 Drafting of Agreement. It is acknowledged that the City and the Participating Agencies, with the assistance of competent counsel, have participated in the drafting of this Agreement and that no ambiguity should be construed for or against the City or any Participating Agency on account of such drafting. 16.4.2 Entire Agreement. The City and each Participating Agency represent, warrant and agree that no promise or agreement not expressed herein has been made to them, that this Agreement contains the entire agreement between the Parties, that this Agreement supersedes any and all prior agreements or understandings between the Parties unless otherwise provided herein, and that the terms of this Agreement are contractual and not a mere recital; that in executing this Agreement, no Party is relying on any statement or representation made by the other Party, or the other Party's representatives concerning the subject matter, basis or effect of this Agreement other than as set forth herein; and that each Party is relying solely on its own judgement and knowledge. 16.4.3 Agreement Binding on All; No Third -Party Beneficiaries. This Agreement shall be binding upon and shall inure to the benefit of each of the Parties, and each of their respective successors, assigns, trustees or receivers. All the covenants contained in this Agreement are for the express benefit of each and all such Parties. This Agreement is not intended to benefit any third parties, and any such third -party beneficiaries are expressly disclaimed. 16.4.4 Severability. 16.4,4.1 Should any provision of this Agreement or any associated Administrative Agreement be held invalid or illegal, such invalidity or illegality shall not invalidate the whole of the Agreement, but, rather, the Agreement shall be construed as if it did not contain the invalid or illegal part, and the rights and obligations of the Parties shall be construed and enforced accordingly except to the extent that enforcement of the Agreement without the invalidated provision would materially and adversely frustrate either the City's or a Participating Agency's essential objectives set forth in this Agreement or the applicable Administrative Agreement. 16.4.4.2 Should a court determine that one or more components of the allocation of costs set forth in this Agreement or any associated Administrative Agreement places the City or a Participating Agency in violation of Article XIII D, Section 6 of the California Constitution with respect to their ratepayers, such components shall no longer be of force or effect. In such an event, the City and the Participating Agencies shall promptly meet to renegotiate the violative component of the cost allocation to comply with Article XIII D, Section 6 of the California Constitution, and use the dispute resolution process in Section 10 of this Agreement if an agreement cannot be reached through direct negotiation. 43 - 14-23-25 4947-3419-6844 Page 59 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 16.4.4.3 Should a state or federal agency provide a final, written determination that the method of allocating Pure Water Program Capital Improvement Costs under this Agreement violates the requirements of state or federal grants or loans which are, or will be, used to fund the wastewater components of the Pure Water Program, such allocation method will no longer be of any force or effect. In such an event, the allocation of Repurified Water Revenue and the Capital Expense Rate will continue to be based on the Parties' actual payments to fund the Pure Water Program Capital Improvement Costs attributable to the Metro System. The City and the Participating Agencies shall also promptly meet to negotiate an alternative cost allocation method that would comply with such grant or loan funding requirements. 16.4.5 Choice of Law. This Agreement and any of its associated Administrative Agreements shall be construed and enforced pursuant to the laws of the State of California. 16.4.6 Recognition of San Diego Sanitation District as Successor to Certain Parties. The Parties hereby acknowledge and agree that the San Diego County Sanitation District is a Participating Agency under this Agreement as the successor in interest to the Alpine Sanitation District, East Otay Mesa Sewer Maintenance District, Lakeside Sanitation District, Spring Valley Sanitation District, and Winter Gardens Sewer Maintenance District. 16.5 Declarations Re: Agreement. 16.5.1 Understanding of Intent and Effect of Agreement. The Parties expressly declare and represent that they have read the Agreement and that they have consulted with their respective counsel regarding the meaning of the terms and conditions contained herein. The Parties further expressly declare and represent that they fully understand the content and effect of this Agreement and they approve and accept the terms and conditions contained herein, and that this Agreement is executed freely and voluntarily. 16.5.2 Warranty Regarding Obligation and Authority to Enter Into This Agreement. Each Party represents and warrants that its respective obligations herein are legal and binding obligations of such Party, that each Party is fully authorized to enter into this Agreement, and that the person signing this Agreement hereinafter for each Party has been duly authorized to sign this Agreement on behalf of said Party. 16.6 Right to Make Other Agreements. Nothing in this Agreement limits or restricts the right of the City or the Participating Agencies to make separate agreements among themselves, including through joint powers agreements, without the need to amend this Agreement, provided that such agreements are consistent with this Agreement. Nothing in this Agreement or Section 6 limits or restricts the right of the City or the Participating Agencies to enter into separate agreements regarding the industrial pretreatment program, or for the purchase or sale of Repurified Water produced by the Water Repurification System, or sharing in City Water Utility PW Costs; however, such agreements shall not affect the cost allocation and Metro System revenues delineated in Section 5. 16.7 Statute of Limitations to Resolve Billing Issues. Notwithstanding any longer statute of limitations in State law, if the City or a Participating Agency wishes to dispute a bill (including, but not limited to, an audited bill or an audit reconciliation) on the basis of an alleged overpayment 44- 10-23-25 4907-3419-6844 Page 60 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda or underpayment arising under this Agreement, the Party alleging the dispute must provide written notice regarding the disputed bill to all Parties to this Agreement promptly upon discovery of such a billing issue. The written notice shall invoke or reference this Section. The Parties agree that such refunds or collections shall not accrue for more than three (3) years from the date that such billing is received by the Participating Agency, or one (1) year from the date that an audited reconciliation is received by the Participating Agency, whichever date is later. The City and the Participating Agencies hereby waive any applicable statute of limitations available under State law that exceed the time frames set forth in this Section 16.7. Upon receipt of the written notice regarding the billing dispute, any Participating Agency wishing to participate in the resolution of the dispute shalt be allowed to do so and to present evidence to all Parties in support of their position. The involved Parties' determination regarding the outcome of the billing dispute, including any related adjustments to each Participating Agency's share of net Metro System costs or revenues resulting from the resolution of such billing issues, shall be final. Nothing in this section relieves a Participating Agency from its obligations to make timely payments under this Agreement irrespective of whether or not a bill is being disputed. If the Parties are unable to resolve a billing dispute, the Parties shall utilize the dispute resolution processes in this Agreement. 16.8 Counterparts and Electronic Signatures. This Agreement may be executed in counterparts. This Agreement shall become operative as soon as one counterpart hereof has been executed by each Party. The counterparts so executed shall constitute one Agreement notwithstanding that the signatures of all Parties do not appear on the same page. A faxed, .pdf, or other electronic copy of the fully executed original version of this Agreement shall have the same legal effect as an executed original for all purposes. Electronic signatures (including but not limited to signatures via DocuSign) shall be acceptable, enforceable, and shall have the same legal effect as an original signature. 16.9 Transparency. Upon request, the City shall promptly provide each Participating Agency with access to all records and information reflecting Flow and Strength of sewage in the Metro System, including, but not limited to, Flow data from all Metro System meters, worksheets or calculations that are used by City to develop cost information for any costs contemplated by this Agreement, and any Strength or other data utilized by the City when calculating annual sewage Flow and/or other costs imposed pursuant to this Agreement (including, but not limited to, pretreatment costs). The Parties shall work in good faith together to ensure the Participating Agencies have reasonable and full transparency under this Agreement. 16.10 Incorporation of Recitals. All of the recitals set forth in this Agreement, and all of the exhibits attached to this Agreement, are by this reference incorporated in and made a part of this Agreement as though fully set forth herein. 16.11 Joint Exercise of Power. It is the intent of the Parties that this Agreement is intended to exercise the governmental authority granted pursuant to Gov. Code Section 6500 et seq. which provides for the joint exercise of governmental powers. 45 - 10-23-25 4907-3419-6844 Page 61 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda N WITNESS WHEREOF, the Parties have executed this Second Amendment and Restated Regional Wastewater Disposal Agreement and the associated Administrative Agreements(s) identified herein as of the date first set forth above. CITY 'F HU VISTA Name: John McC nn Title: Iavor Attest: Kerry K. Bigelow, City Clerk CITY OF CORONADO Approved as to Fo Nalne: oseMarie Horvath for Ma . Verdugo Title: City Attorney Approved as to Form: Name: Name: Title: Title: CyI&,allJ 701a13I.1I Approved as to Form: Name: Name: Title: Title: CITY OF EL CAJON Approved as to Form: Name: Name. Title: Title: CITY OF IMPERIAL BEACH Approved as to Form: Name: Name: Title. Title: CITY OF LA MESA Approved as to Form: Name: Naive: Title: Title: 46- 10-23-25 4907-3419-6844 Page 62 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda LEMON GROVE SANITATION DISTRICT Approved as to Form: Name: Title: CITY OF NATIONAL CITY Name: Title: OTAY WATER ISTRICT Name: Title: PADRE DAM MUNICIPAL WATER ISTRICT Name: Title: CITY OF P0 WAY Name: Title: CITY OF SAN DIEGO Name: Title: Name: Title: Approved as to Form: Name: Title: Approved as to Form: Name: Title: Approved as to Form: Name: Title: Approved as to Form: Name: Title: Approved as to Form: Name: Title: SAN IEGO COUNTY SANITATION Approved as to Form: DISTRICT Name: Title: 10-23-25 4907-3419-6844 Name: Title: 47- Page 63 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Accompanying SARA 10/23/25 Page 64 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Exhibit A: Listing of Metro Facilities as of 10/23/2025 Metro Facilities (Electronic Exhibit); file name: 2025-10 Exhibit A Metro Facilities.aprx time stamp of file: 10/23/2025 3:38 PM software used to open and view file including version: ArcGIS Pro 3.5. Page 65 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda EXHIBIT A METRO FACILITIES AS OF 10/23/2025 TREATMENT FACILITIES Point Loma Facilities (PLWWTP) Advanced Primary Treatment Plant Ocean Outfall Access Road Power Generation Facility North City Water Reclamation Plant (NCWRP) South Bay Water Reclamation Plant (SBWRP) South Bay Land/Ocean Outfall' SLUDGE TREATMENT CONVEYANCE FACILITIES Metro Biosolids Center (MBC) Point Loma Digesters3 Digested Sludge Pipeline: Point Loma to MBC Raw sludge pipeline: NCWRP to MBC Centrate Pipeline: MBC to NCWRP Raw sludge pipeline: SBWRP to South Metro Interceptor CONVEYANCE Pump Station 1 Pump Station 1 Force Main Pump Station 2 The South Bay Land/Ocean Outfall is jointly owned by the International Boundary and Water Commission, U.S. Section (60.06%) and the City of San Diego (39.94%). The capacity of the City's portion of the outfall as of the date of this Agreement is 74 MGD average dry weather flow, of which the Metro System has a capacity right to 69.2 MGD and the City as an exclusive right to 4.8 MGD 2Gravity pipeline connection between NCWRP and the North Metro Interceptor 3Included separately from rest of treatment plant to acknowledge role in sludge treatment process. Page 66 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Pump Station 2 Force Mains Pump Station 2 Backup Power Generation Facility South Metro Interceptor North Metro Interceptor Grove Avenue Pump Station Grove Avenue Pump Station Force Main Rose Canyon Parallel Trunk Sewer 2 Second Rose Canyon Trunk Sewer 2 East Mission Bay Trunk Sewer2 Morena Blvd. Interceptor 2 Metro System Meters (including 88 billing meters and 14 operational meters) North City Tunnel Connector West Point Loma Interceptor OTHER FACILITIES Environmental Monitoring and Technical Services Laboratory (95% Metro Ownership) Metro Operation Center aka MOC (17% Metro Ownership) Dairy Mart Road & Bridge FUTURE METRO FACILITIES Phase I Pure Water (Under Construction — Percent ownership will be assigned after audit) Expand NCWRP Morena Pump Station Morena Pump Station Force Main CentratelRSDP Line (From NCWRP to North Metro Interceptor) East Mission Gorge / East County residuals line (Water, Muni, and Metro combined assets) The South Bay Land/Ocean Outfall is jointly owned by the international Boundary and Water Commission, U.S. Section (60.06%) and the City of San Diego (39.94%). The capacity of the City's portion of the outfall as of the date of this Agreement is 74 MGD average dry weather flow, of which the Metro System has a capacity right to 69.2 MGD and the City as an exclusive right to 4.8 MCC 2 Gravity pipeline connection between NCWRP and the North Metro Interceptor 3Included separately from rest of treatment plant to acknowledge role in sludge treatment process. Page 67 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Phase 2 Pure Water Planned Phase 2 Pure Water (TBD) Phase 2 Pure Water Centrate Line (TBD) Reserved Rights- Other Future Facilities The facilities listed in this category will potentially be required as part of the Metro System for hydraulic capacity, good engineering practices and/or compliance with applicable law, rules or regulations, including compliance with OPRA, and continuation and maintaining the City's Waiver of applicable treatment standards at the Point Loma Wastewater Treatment Plant Waiver"). South Bay Secondary Treatment Plant (21-28 MGD) South Bay Secondary Sewers & Pump Station (Sweetwater River) South Bay Sludge Processing Facility Wet Weather Storage Facilities The South Bay Land/Ocean Outfall is jointly owned by the International Boundary and Water Commission, U.S. Section (60.06%) and the City of San Diego (39.94%). The capacity of the City's portion of the outfall as of the date of this Agreement is 74 MGD average dry weather flow, of which the Metro System has a capacity right to 69.2 MGD and the City as an exclusive right to 4.8 MGD 2 Gravity pipeline connection between NCWRP and the North Metro Interceptor 3Included separately from rest of treatment plant to acknowledge role in sludge treatment process. Page 68 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda NI LEGEND V - -LL METROIHIERG METERS 7 IYy4y F PfrTREATMEHTPWITS — METRO IHTERCEPTORS S • - . METFN PUMPSTATIONS - - EORCE MAINS SILJfl [I.IJE3 OTHER PUAF $TATIOEIS _ _ NETkoiNiTFALL 1'., nl• CITY OF POWAY I` Yee r Jol ned7971 CITY OF c" DEL MAR Year Joined 1972 1 1 i PADRE DAM MUNICIPAL WATER DISTRICT NORTH NORTH C1TY YearJolned 1974 CITYAWP WATER REC. PLANT EAST I LAKESIDEIALPINS COUNTY AWP ISO County Senitatfon DletrIct Year Joined 1974 METRO BIOSOLIDS CENTER riw.... e GpRDEN5 13' SD Cuuunly S enitetion District Year Joined14as rF EL CAJONalnW Cc—yry 796E CITY OF LA MESA . Hk t. Year Jolrnd 1967 CITY OF LEMON i y ss GROVE Year Joined 1963 SPRING VALLEY SD County S•nNetfon OMtrice ryF- • a Year Jolrrd 1963 p L, q POINT LOMA • j TREATMENT . ODISTRICTR G V• Fu970 t • PLANT ns} pO1TIT OC1EfLN I *N' n POLT{ FP11_:-•- _' CITYOF ' • e •_ -- CORONADO Year Joined 19&3.y r._. C OF OF NATIONA4 CFTY f • / f[ Yar Joined 1963 j i C ITY OF C HULA VISTA S Ynar Joined 1963 EAST OTAY MESA CITY OF SD County 9anEeflon District Year Jelitee 2000 IMPERIALBEACHYear Joined 1963 BAY SOUTHSOUTH WATER RECL SOUTH BAY pCEAN gpY LA"L DUT{ALL PLANT OUTEALL_ _ INTL J„ f WASTEWTR TRE ATM NT PLT Sarx I5.ui f Land M FrlanagerTlM[, FSN, HERE.. CiarntiR INCI2EA F, ww S, MET ni Page 69 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Exhibit B Distribution of Wastewater System Capacity Rights Page 70 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda EXHIBIT B DISTRIBU %'ION OF WASTEWATER SYSTEM CAPACITY RIGHTS LJ ANNUAL FIXED CAPACITY RIGHTS' I 2 3 4 5 6 7 AGENCY Average Howe, NIGD Incremental s Peak Flow, , MGD a RSPD , MCD Total Allowable a Etow , MGD TSSt, 1,[1110 the. COD, I.000lbs, s Pure Water Phase 1 Chula Vista 18.33 19.52 0 37.85 22,082 38,4I9 1 I.G99'!i Coronado 1,90 3.03 0 4.93 2,089 3.336 1.152% Del Mar 0.00 0.30 0 0.30 0 0 0.020% last Olay Mesa 1.79 3.48 11 5.27 1.915 3.336 I.096'10 El Cajon 1.29 19.93 0.602 21.82 2,196 3,052 0.497% imperial Beach 2.47 4.48 0 6.95 2,045 3.844 1.411% I_a Mesa 5.29 23.90 0 29.19 4,668 9.636 2.823% Lakeside/Alpine 0.07 1.67 0.310 2.05 238 293 0.153% Lemon Grove 2.40 4.51 0 6.91 2,289 4,387 1.395% National City 4.65 3.07 0 7.72 4,562 9,161 2.1152% t )Lay 1.38 0.57 11 1.95 984 635 0.457% Padre Dam 0.44 6.54 0.364 7.34 632 890 0.444% Poway 3.10 8.110 0 11.90 3,113 5.073 1.869% Spring Valley 5.74 5.05 0 10.79 6,039 10,597 3.765% Winlergarderls 0.02 1.08 0.080 1.18 65 80 0.044% SUBTOTAL 47,9 105.9 1356 155.1 52,916 92,930 29.677% San Diego Wastewater 124.05 136.16 0 26(1.21 13(1.[132 252,818 70.323% Water 0 1 14.3 0.110 1 D 1 SUBTOTAL 124.1 136.2 14.3 260.2 130,032 252,818 70.323% Metro ]&l 82 82 TOTAL 171.9 324.1 15.7 497.4 182,948 345,756 100% 1. Currently based on 2030 projected flows and strengths. 2. Based on monthly average flow and strength. 3. 13osad on hourly average flow. 4. Reject Stream from Dercineralimtian 1'iocess 5. Pure Water Phase l Capital Melded Percentages as eotnbliahed in Exhibit C of the 'Amended and Restated Regional Woatewater Disposal Agreement Between the City of San Diego and the Participating Agencies in the Metropolitan Sewerage System" memorialized here only for use in hilling Pure Water Phase l capital expenses. The following fractions were used to calculate the Melded Percentage (Based on 5 year average and not subject to change except by agreement of the parties.] FLOW 5.5 COD 0.183 6.25"7 0.243 7/18/2025 Page 71 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Exhibit C Administrative Protocol on Allocation of Operating Reserves and Debt Service Coverage to Participating Agencies Page 72 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda METRO WASTEWATER JPA Www.l II elude Ulu April 19, 2010 Rod Greek Public Utilities Deputy Director City of San Diego, Metropolitan Wastewater 9192 Topaz Way San Diego, CA 92123 276 Fourth Avenue Chula Vista, CA 91950 619-476.2557 Re: Administrative Protocol on Allocation of Operating Reserves and Debt Service Coverage to Participating Agencies Dear Mr. Greek: Ernest Ewin, Chairman This letter is intended to memorialize the attached Administrative Protocol on Allocation of Operating Reserves and Debt Service Coverage to Participating Agencies ("Protocol") negotiated between the City of San Diego and Metro TACI Metro JPA1 Metro Commission, on behalf of the Participating Agencies under the Regional Wastewater Disposal Agreement. Your signature will indicate acceptance of the Protocol on behalf of the City. By countersigning this letter, the City of San Diego and Metro TAC/ Metro JPAI Metro Commission acknowledge and agree to the terms and conditions contained in the attached Protocol. Sincerely, for the Metro TAC/ Metro WA] Metr Commission Enclosure The Protocol is accepted by the City of San Diego pursuant to the terms and conditions set forth in the attachment hereto: Date: _/ I od Greek, ublic Utilities Deputy Director The Protocol is accepted by Metro TAC/ Metro JPAI Metro Commission on behalf of the Participating Agencies pursuant to the terms and conditions set forth in the attachment hereto: Date: The Joint Powers Authority Proactively Addressing Regional Wastewater Issues Chula Vista Coronado Del Mar • 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 Clay, Lakeside/Alpine, Spring Valley & Winter Gardens Sanitation Districts Page 73 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Administrative Protocol on Allocation of Operating Reserves and Debt Service Coverage to Participating Agencies BACKGROUND: In early 2008 the MetroTAC formed a working group in response to the City of San Diego's request for 20 million in funding in FYF 2009 from the Participating Agencies ("PAs") for operating reserves and debt service coverage. The working group continued to meet with City of San Diego staff regarding the establishment of a mutually agreed upon protocol through early February 2010. A summary of the City of San Diego's 2008 proposal and the negotiated 2010 protocol is included as Attachment A. At its regular meeting of February 17, 2010, the MetroTAC approved the following recommendations to move to the Finance Committee of the Metro Wastewater JPA and thereafter to the Metro Commission/ Metro Wastewater JPA for discussion and action: Proceed with PAs funding a 1.2 debt service ratio coverage Proceed with PAs funding a 45 day operating reserves The PAs will fund no other reserves FY07 and FY08 refund monies will be used to fund the operating reserves Interest accrual on operating reserves and undesignated accounts will start with FY10 (beginning on July 1, 2009) The Finance Committee of the Metro WastewaterJPA, at its February 24, 2010 meeting, took action to recommend approval of the above, by the Metro Commission/ Metro Wastewater JPA. At its March 4, 2010 meeting, the Metro Commission/ Metro Wastewater JPA, comprised of representatives of the PAs, approved the components of the negotiated policy, with the understanding that any such policy would serve as an administrative protocol regarding the allocation of debt service coverage to the PAs and funding of operating reserves by the PAs. PRQTOCOL REGARDING PA FUNDING OF OPERATING RESERVES: Background: Operating reserves are established to provide funding for unforeseen events that might occur during the course of the fiscal year such as unforeseen major maintenance or capital projects. The PAs performed a survey of other regional wholesale agencies and determined that agencies such as the San Diego County Water Authority maintain a 45 day operating reserves. Although the City of San Diego's current policy is to increase operating reserves for its retail customers from 45 to 70 days, the City realizes that if a major maintenance incident should occur it can immediately request payment from the PAs per the Regional Wastewater Disposal Agreement. The City of San Diego's retail customer's rates cannot be immediately increased due to Proposition 218 requirements for noticing and public hearings. Protocol: Attachment B is a summary of the funding strategy showing each PAs 2007 and 2008 refunds based on recent City Metro Wastewater Exhibit E audits. The refunds will be used to fund the PAs 45 day operating reserves contribution. In the majority of cases most PAs will see a refund even after they have Draft #2 - March 10, 2010 Page 1 5 DP U B\PD ESOUSA\3 93171.1 Page 74 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda fully funded their portion of the operating reserves. PAs that do not have adequate refunds will be billed for their portion of the reserve in the next quarterly 2010 billing. The operating reserves for each fiscal year will be established based on 45 days of operating revenues as determined by the following formula: Fiscal Year Estimated Operpting Expenses (not including CIP and debt service 365 days x45 days The number of days included in the calculation cannot be changed without prior consent of the PAs. The operating reserves will be maintained by the City of San Diego and interest will accrue on a monthly basis based on actual interest rates on the City's investments. This interest revenue will be added to the PAs undesignated fund balance for that fiscal year. As part of each year's Exhibit E audit the actual required operating reserves and interest earned on it will be determined and audited by the City of San Diego's external auditors and PA representatives. A summary of the operating reserves balance and interest earned for each PA will be included as a footnote or attachment to the City Metro Wastewater Exhibit E Audit. PROTQCOL REGARDING ALLOCATION Of DEBT SERVICE COVERAGE To PAs Background: A 1.2 debt service coverage ratio is a requirement for all of the outstanding Metro parity debt. A cash flow prepared by the City of San Diego shows (Attachment Cy that if the PAs are billed at the current level ($65 million annually to cover the PAs portion of operations, pay -go capital, and debt service expense) for the next three to five years that this requirement can be achieved without additional contributions by the PAs. This provides the PAs a stable projected annual Metro contribution for the next three to five years. Protocol: The PAs will maintain through annual contributions and use of PA undesignated fund balance a positive cash flow not to exceed 1.2 times the PA share of the required annual debt service on Metro Debt. The debt service coverage ratio of 1.2 cannot be changed without prior consent of the PAs. The undesignated fund balance will be maintained by the City of San Diego and interest will accrue on a monthly basis based on actual interest rates on the City's investments. This interest revenue will be added to the PAs undesignated fund balance for that fiscal year. As part of each year's Exhibit E audit the actual required reserve coverage and interest earned on the undesignated fund balance will be determined and audited by the City of San Diego's external auditors and PA representatives. A summary of the debt service coverage requirement and portion of interest earned on the undesignated fund balance for each PA will be included as a footnote or attachment to the City Metro Wastewater Exhibit E Audit. If the cash flow in any year does not provide the required 1.2 debt service coverage the PAs will be billed the additional required revenue including interest. Draft #2 -March 10, 2010 Page 2 5 D PU B\P D E5OUSA\393171.1 Page 75 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda I 1pprpNN spa m p G v tipnVV Y VV II mry m q 111 LL N N p M a a H I I lb HiP! 7uTn L aCJ La 442 9 Page 76 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda I 00 e-1 N r -f In GGrr! N p ma a 01 G1 w O Ci 0 co Ln en n G to oo n n d ac C mMWm0md00t0NCm vryrnitovYrywv 2 v1 Y O 4c pppp N CMi Co Co N AD M N f0 M N Ci M Z w w M H Co M G n rY1 m Co' u1 Oa rn cc C N f4 ClN 1n N' O n i M 10 00I- aN m In N N 1n N N N N W ri V th VF tR V1 VVF ih LA ih FW0. h O UI v1 00 Ui N N it Yl N O1 m 00 O a 00o M a NN 0 CO inm wlCo 111a N Nn Nm 00 on m i in I' CO ui Yfi N C In Ui 0 N co N C] N 00 00 r-1 C" m 3 N N m V m N W O 0 Co 01 CO In 00 W N N It'. C! 8 rn r -. N n as v a rn in 0 v n tc 1 m 1 n to ti rn N' Ci to N pt r. m 00 00 H N N 61inNNNv1tointoit'. UI N-1 o Y m N1p0p0mrm OW~0 w rmn fYIw CD 00 Ncoo 01 0 r-1 N C N Ui N Lq Q C fYI C Rr m n 00 N Co U) ry r 0 0 Co eonN V vV INN Ci m 11n rr14 Co Vt. ev y Y v ri W mb b cNry Ci 01 OD 8 Cm1mi N T n 11 m 0 O 07 f+ m m n rn q rn 1• at r', d Q1 N Q1 N N Ci ni n r- M Q1Co Yf Co N NN. o M 00 Co Ci fYl 01 m t 0 N 4 N W Y A^ r-i a? If.V'F 411 VI VI I Z Z 1 0. 0 4— Qi Qr Yi Q u Q O N g m w z a Z J L7 4 a o z z2 UI aw ur r a z e 2 ac v o0 a W S 5 2 a ap C/) a aN MN FU 4: Page 77 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Exhibit D Notice Listing Page 78 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda EXHIBIT D NOTICE LISTING Maria Kachadoorian Greg Humora Mayor Todd Gloria City Manager City Manager Chief Operating Officer City of Chula Vista City of La Mesa City of San Diego 276 Fourth Avenue 8130 Allison Avenue 202 "C" Street Chula Vista, CA 91919 La Mesa, CA 91942 San Diego, CA 92101 Phone: (619) 691 5031 Phone: (619) 667-1101 Phone: (619) 236-5949 mkachadoorian a)chulavista Ghumora(dricityotlamesa.us ma ortodd loria a]sand ie . ov ca. ov Lydia Romero Ebony Shelton Tina Friend City Manager Chief Administrative Officer County City Manager City of Lemon Grove of San Diego City of Coronado 3232 Main Street 1600 Pacific Highway, Rm. 209 1825 Strand Way Lemon Grove, CA 91945 San Diego, CA 92101 Coronado, CA 92113 Phone: (619) 464-6934 Phone: (619) 531-5250 Phone: (619) 522-7333 sdershetn(lemongrove.ca.us Cao mail aNd ount .ca. ov cm rr,coronado.ca.us Scott Huth Jose Martinez Ashley Jones Acting City Manager General Manager City Manager City of National City Otay Water District City of Del Mar 1243 National City Blvd. 2554 Sweetwater Springs Blvd. 1050 Camino Del Mar National City, CA 91950 Spring Valley, CA 91977 Del Mar, CA 92014 Phone: (619) 336-4240 Phone: (619) 670-2210 Phone: 755-9313 ext. 25 CMO a,nationalcityca.gov iose.martine otanyater v a i onesCa de l mar. ca. us Chris Hazeltine Kyle Swanson Graham Mitchell City Manager CEO/General Manager City Manager City of Poway Padre Dam Municipal Water City of El Cajon 13325 Civic Center Drive District 200 Civic Center Way Poway, CA 92064 9300 Fanita PkwyElCajonCA92020Phone: (858) 679-4200 Santee, CA 92071Phone: (619) 441-1716 chazeltine(upoway.o Phone: (619) 258-4673 gmitchell(a3elcajon.gov k sw anson(ct p adre.org Tyler Foltz City Manager City of Imperial Beach 825 Imperial Beach Blvd. Imperial Beach, CA 91932 Phone: (619) 423-8300 ext. 7 tfottz(a imperialbeachca.you 4914-3650-2326 Page 79 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Exhibit E Methodology for Contract Capacity Transfers. Page 80 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda EXHIBIT E METHODOLOGY FOR CONTRACT CAPACITY TRANSFERS The following exhibit describes the methodology for transferring contract capacities from the Metro Pooled Capacity (summarized in the table below) to a Party's contract capacity defined in Exhibit B. POOLED CAPACITY Average Flow, lncremenial Peak', TSS, COD, mgd mgd 1,000 lbs. 1,000 lbs. After Phase I Pure Water [] 10 96,820 27,521 After Phase 2 Pure Water 10 20 96,820 27,521 1. At Point Loma WWTP 2. Assume system storage If a transfer of contract capacity is initiated as set forth in Section 4.4.3.1, capacity will be taken from the Pooled Capacity and added to the Party in need of additional capacity. Thereafter, the above table of Pooled Capacity will be updated with the subject column reduced, and Exhibit B will be updated with the subject Party's contract capacity correspondingly increased. In lieu of transferring average flow capacity from the Pooled Capacity to a Party, the Party can choose to transfer Incremental Peak Flow Capacity to Average Flow Capacity keeping Total Allowable Flow the same, assuming the Party would still have sufficient Total Allowable Flow Capacity for their peak flows. If a transfer of contract capacity as set forth in Section 4.4.3.2, the reverse shall occur and the subject Party's contract capacity will be reduced in Exhibit B and the Pooled increased. In lieu of transferring average flow capacity to the Pooled Capacity from a Party, the Party can choose to transfer Average Flow Capacity to Incremental Peak Flow Capacity keeping Total Last Updated: 5/29/2025 Page 81 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Allowable Flow the same, if they anticipate needing their current Total Allowable Flow for their peak flows. The remainder of this Exhibit has examples of how these transfers would be performed and the estimated effect on a Party's share of Metro System Costs under the FAB Billing System. Please note Metro System costs will change from time to time as well as Contract Capacities per Exhibit B, so the following are only examples and not meant to be exact. These examples are based on Exhibit Bas of the signing of this agreement, not necessarily the last revision of this exhibit. These examples are currently based on FY24 unaudited costs and estimated FY27 billing units. Last Updated: 5/29/2025 Page 82 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda AVERAGE FLOW EXAMPI.F — $% INCREASE IN CONTRACT CAPACITY FROM POOLED CAPACITY Ifth City of Chula Vista needed o 5% Increase in Avcragc Flow Contmcl Capacity Doris the Pooled Capacity, Ihcn Cxlrcbil 13 Cumra I Capacity would be updated as follows DLSTR18UT [ON OF WAS1•EWATER SYSTEM CAPACITY RIG] ITS ANNUAL FIXED CAPACITY RIG] ITS AGENCY I 1 3 4 51 6 __ Aver., Incremental Total Allorrabir TSS. COD, Flow, Peak Flow, ILSPI3, MCD Flow, 1,00016& i 1,00016s, MGD 11iGD MGD t--- Chula Viola (Old) 18-33 19,52 1) 37.85 22,11112 311,419_ Chula ViI------ ola (New) 19.25 19.52 0 30.7 22,082 --38,419 If the City of Chula Veto rwedorI a 5% Irumast al"nnlru:l C:11nwily, then Chula Viola's coals incTeaso -4%. All or ugoeaiao axols would do roasu proportionally. U11'NERSDIP CSE TOTAL AYCraga FneremCntal L4DP, T5.., COD, Metar RSDP, TSS, COD, of AGENCY I Flaw, Peak Maw•. OICD I 1,Q10I6s. 1000 Floe•• MCD 1,00016s. 1,080 lbs. TOTALTotd MCD MCD 6& NIGD hole Vista 52,910.[1{12 SI„3,3[1,56,3 0 52,040,479 527,941 Si !.015 -PM Sit 7,5611,509 02,941,1611 28,3.46,743 11.1% Old) Chula Vista 3,041,025 51,327,783 50 52,040,479 527,941 012.028,890 S0 7,560,599 $2,941,160 SZ9,467,877 11,6% Now) Last t;pdatcd! 5/29/2025 AGENCY OLD NEW ChaIa Viaro S 28,546,743 5 29467 877 2,151,663 2.540.402Coronado lkl Mor S 20,447 20,405_ Tact Clay $lcaa S 1,072,840 5 _ 1,069,001_ 5 3,311,325LICajun 3,300.158 Imperial Beach 5 3,397,789 3,379,514 LuMora S 8,545,592 8,504,174 LakesidoJN ine S 30) 946 S 304,943 Lawn Grove S 3,041,920 S 6,275,5I2 S 3,026,888 5 6,243,265NationalCay Otay 5 946,616 S 943.355 Padre Dam 5 750,193 748,140 Poway S 4,347,435 S 4,326.,,388 Spring Valley S 7,162,725 S 7,147,114 Winle, rnbenr S 135,844 135,453 SUBTOTAL S 70,032,590 S 70,957,35_ San !Ingo 5 182,904,588 S 161.993,097SDIVnxwwater 1,457,146 S 1,444,072SDWater SUBTOTAL 184 1734 5 183137 !69 Rc ivrurl Sludge S TOTAL S 1:4,394,325 S 254,394,320 Page 83 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda AVERAGE FLOW EXAMPLE -5% INCREASE IN CONTRACT CAPACITY PROM INCREMETNAL PEAK I1 dw City of Chula Vista needed a 5% Incrcasd in Average ]'low Contract Capociiy From their imxemenlal Peok, then Lnhibil l3 Contract Clsaeity would be updaud m Fellows DISTRI13UTION OF WASTF W A I k'14 SVS1 FM CAPACITY RICIITS ANNUAL FIXED CAPACITY RIGHTS AGENCY 1 2 3 I 4 S 6 Average Inc rem enrol Toln1 Allowable T5S. COD. Plow, Pcak Flow, RSPD, MGD FIDw, MGD M1lCn NCl1 - 1,000 lbs. 1,000 i. hs helaVtata1O]ld-• 38.33 19.52 3 37.85-" 22,082 38,419 Chula Vikw (New) 19.25 18.6I 0 37.85 22,092 38,419 If the City of (:hula V,-ta,,treed a 5% l.crcasc io Cnnuact Capacity, then Chula Vista's costs increase -3-8%. All other agwuics' rows would decrease proportionally. IWN-!R"IIIV I: si' 10IAl. Average incremental RSI7P, TSS. COD, Metered R5DP, : 755, COD, DOTALAGENCYFlow. Peak Plow, F1GD 1,0001b. 000 Flan, MGD . 1,000 lbs. 1.000 lbs, FDlalM(W MGD Iha. M11GD Chula Vista Old) 32,910,602 SI,33II,5h3 50 2,040.479 5527,9+11 01 13135,599 S9 57.560599 5,941,140 920,3.6,743 1.194 IChula Vista53041023Nm'c) 51,268,493 56 52040,479 5527,941 12.031092 50 S7..50932,941,140 929.411,386 11.6% Last Updated, 5129,2025 AGENCY OLD NEW Chula Vista S 28 46,743 S 1,586 Comrade 5 2,331.633 29,41 S 2,341,152 Dal Mar Fas1Ota Mcaa S 20,447 S 1,072,840 5 20.449 S 1.069,537 5 3,303,299EICa•om 5 3,311,325 Imperial Hoods Lu Mesa 7,397,789 S 8,545,592 S 3,380,539 S 8,509,472 I kesiddAlpinc anon Crow 5 305,946 S 3,041,920 S 305,226 S 3,327,050 National Cti S 6,275,512 S 6,244 378 Otay 946,616 943,505 Padre Dom Vows 5 750,193 S 4347,435 3 749,149 S 4,328.094 SpsiagVu11o'S 7,182725 S 7,148.584 W nhsgerdorm SUBTOTAL Diego SD IVuetewaler4,538 S 134458 S_ 135,622 S7017,492San S 182,031,622 SDWater 3,990 7,146 S 1,445,211 1400TOTAI. Rcginl Sludge TOTAL 1,734 4,325 S 183,476,533 S - S 264,194,325 Page 84 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 1NCREMENTAI. PEAK FLOW EXAMPLE •-3% 11CREASF IN CONTRACTCAPACITY FROM POOLED CAPACITY II•tho City o£Chula Vista rwt*sI a 5".b lncreaae in lncremenlal Peak Contract Capacity Fmm the PoutcJ Capacity, then Ilahibit U Cant tact Capacity would he upJat,J as f Jlaws I' DISTRIBUTION OF WASTEWATERSYSIF.65 CAPACITY RIGHTS I ANNUAL FLYED CAPACITY RIGHTS AGENCY I 2 3 4 S fi Average f lneremenial Total Allmvahle TS5. Co Flo.s, Peak Flow, RSPD, MGD Flo.v, 1,9110 tbs. 1,000 Iba. MG I] MGD Chula Vism(Old} MGU 1033 19.52 0 37.85 22,082 38,419 Chula Vlsra lewl l&33 20.59 0 38.83 22,0312 I 38.419m if0x: City of Chula Vista needed a 5% Increase in Contract Capacity, then Chula Vasla's casts i sarcasc -C1-2% All other agencies' costs would decressc proportionally. T'IERSlI1P l'SM; IDEAL Average larrrntrosai RSDP, TS5, COD, ysicr. RSDP, •f 55, COD, of AGENCY Flow, Peak Flow, MGD I,41ltlbr. 1,000 MGD 1 1,0001bs. 1,010 ba. TOTAL Foist h1GU MGD Din,M1SGI1MGI) Chula Vista 52,910,602 51 90 52,040,479 527.941 SI1.035,399 0 7,560,399 2,941,150 528,346,743 11.151 Old) 330,367 Chula Vista 52,910.196 $1,394,000 SO 52,040.479 5527,941 SI 1,022,052 50 57,560.599 2,941,160 520.4t7,227 11.2% New Last Updalcd! 5Y29Y2025 AGENCY OLD NEW Chula V,,m 20, 346,743 28407 227 S 2.350,944Coronado52,351_663 S 20.400DelMar20.447 Fax[ Ora Mesa S 1,072,840_ S_ 1072211 5 3,307,956 S 3,396,688 El Cs}xm S 3,311,325 Inrperiat Beach S 7,397,789 La Mean S &545,592 S 8,540,979 LakcsiddAlpino S 505;794 S 305,642 LmwnGrovc S 3,041,920 S 6,275,212 3,040.886 S x;,274,315 946,455 Nalional City Gray __ S _ 946,616 Padre Dun S 750,193 749,111 Powry S 4,347,435 4,345,6104 siis Valley S 7.182,,125 S _ 7,181,144 Winter em S 135,844 135,662 SUBTOTAL S 70,032,390 S _7075,228 Son Diego SD Wadcwarer S 182,904,388 182,863,179 SD '.Valor 1,437,1-06 1,455,920 SUBTOTAL S 18436!,734 S 184:19,999 Regional Sludge S S TOTAL. 254,394.325 S 234,394'325 Page 85 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda RSDP EXAMPLE - 5% INCREASE IN COV FRACTCAPACITY If the City of I:1 Cajon needed a 5% Increase in RSDP Conked Capacity, Ihcn Exhibit B Contract Capacity would be updated as follows ISIS CR I EUT ION OF W ASl E W A CE R SY STE hI CAPACITY RIGHTS ANNUAL FIX" CAPACITY RIGICF$ 1GENCY 2 3 4 5 6 Average Incremental Tolul Allowable TSS, COD, Flow, Peak Flow, W9PD, MGD Flow, 1,0001bL 1,000151. SIGD SIGD MGD 0.602 21.82 - 21.85 2,19& 2,196 1,052 3,052 El Ca3on (UId) 29 59.93 EI Con(Now) 1.29 19.93 0.432 1( 1110 City of Chula EI Cojun needed a 5%increaae in ConnWi Capacity, than Chub V•rata'o uralu Iiicneaua-2.l%5. All []filer ugunuim aunts W[nlld d,rereau, pn p,rtt nanlly. 01% E RS I I I P USE 1(7.11. Averogr lncrerneel1L RS11P, TSS, COD, Metered RSDP. TFS, COD, Y of AGENCY Flow, Peale Flo,v' NGII 1,00015,. I.p00 Flow, 67GD 1,!!0016,. 1,04p Ibs. TOTAL MCA MGD lbs, MGD El Cajon l J 52134,838 S I,.i58,.i7K 56,517 32112.124 541,940 625,1191 565.117 SR 16,096 190,415 3,.111,325 1.3% ECap, cw 5204,837 51,357,377 56,841 5202,924 ' 541.940 624,752 .534,671 3616.066 5199,415 3,382,124 1.3% Last Lpdaood: 5.+29!2025 a[[; of sf. OLD r w ChulaVista S 28,346,743 F 28,339,417 Cmomado S 2351,663 5 2,351,1117 Del Mar S 20,447 5 20,432 Farr Cloy Alcoa S 1,072,840 5 1,072.562 S i.382.]21LitCajon _ _ S 3.311 725 Ian y rial Beach S 3,397,769 5 3,396,7]9 S 8,542,569LaMesaS8,545,592 LakeshdHAlphne 305,946 S 391,794 Lemon Gruvc 5 S 3,041,0213,041,920 S 6,275,512 5 6,273.843NatiunolCity lay S 946,616 S 946,432 Padre Dam 5 750,193 749,779 Poway S 4,347,435 S 4,346,059 Spring Vdtey S 7,182,725 S 7,1$0,836 Winter .dens S 135,844 S 135768 Si1BTOTAL S 70,032,590 S 70,084.'178 San Dinn SD Weetcauta 5 182,904,588 S 182,854,978 SD Wotcr S 1,457,146 1,454,969 SUBTOTAL S S 184 30947 Ae Wonat Stud e 104381, 734 5 S TOTAL S 2.54,594,325 S 254,394,325 Page 86 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda TOTALSUSPENDED SOLIDS EXAMPLE 5% INCREASE ]N CONTRACT CAPACITY FROM POOLED CAPACITY If the City of Chula Vista nccdcd u 5".b In in TS5 Contract Capacity from the Punl d Capacity, then Exhibit D Contract Capacity would he updated as follows Lr1S L'R I I;L: 1'I ON OF W ASTE.W.ATER SYSTEM CAPACITY RIGIE IS ^^ ANNUAL FIXED CAPACITY RIGHTS AGENCY 1 12 3 4 5 6 Avenge 1 lncrctucntal Total Allowable 116$ j COD, Flow, Peak Flow, RSPD, MGD Row, 1,0001bs. 1 1,000 Ibs. MGD h4GD_ MGll 1.._.- _ Chula Viva (U!d] --- 18.3.3 1'J-.52 0 37.85 2,08. k 38.419 -. Chute Vigo(New) 19.25 19.52 0 311.77 23,186 I 38,419 ifthe City of Chula Vista rttvdcd e3% Inum-ase in Comtwel Cupocity, than Chula Visia's ruses inc-rtasc --2-61x.,. All ther ogcmcits' costs wtndd decrease pwpurtiundly- OWNERSHIP I SF: TOTAI. Avenge Ineremenral RSDP, T:SS. COD, Metemd RSDP, TSS, COD, AGFNL:Y Flow, Penk Flow. MCD] 1,0001ba. 1,000 Flaw. MGD 1 1,00016s. 1,O0O1bs. TOTAL Total MCD MOD lbs- MCD Chula Visa 112,9111,6112 51.330.563 0 ]2.[14114 '1 5.527;141 SI -[135399 S<I 12,560,511 £2,941,1td1 211,346,743 1.1% Old) fChulaVista2,910,602 $1,330,563 SO 52.129678 5527.941 11.035,399 1 SO 58.224.526 $2,941,164 29.099,869 IIA% New test Updated: 5129/2025 AGENCY OLD NEW Chula Visor S 28 346 743 S 29,099864 Coronado S 2,351,663 S 2,343,749 Del Mar S 20,447 S 20.447 sat Ota5 Mesa S 1,072.840 1 1,070,428 E1 Cajon 3,311.325 S 3.302.43.9 imperial Beault 3,397.789 S 3.30 0,031 8,545,592 8,523,12.6_ La Mesa LokesideiAlptrr 5395,1616 Lemon (oven S 3A41,920 S 3,032 733 Natiotal City S 6,275,5 12 S 6,254,625 Clay S 946,616 S 941,101 Padre Dam S 750.193 S 749,005 Poway 5 4,347,435 4,334,133 Spring Valley S 7,182,725 S 7,158.161 Winder rdcns 135.844 S 115517 SUBTOTAL S 70,032,590 70,656,.374 San Diego S 162,904,588 S 182,273,804SDW,uw..alef 1,457,146 S 1,457,146SDWalcr SUBTOTAL. S 184 61734 S 103733951 SRcanalSlrrd TOTAL S 254. 94.325 S 254,394,325 Page 87 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda TOTAL CIIEM [CAI, OXYGEN DEMAND EXAMPLE. —5% INCREASE IN CONTRACT CAPACITY FROM POOLED CAPACITY If the City of Chula Vista nccdod n 5% Increase u COD Comrac! Capacity feom the Pooied Capacity, Ihcn Exhibit B Contract Cepacily wordd he updated as fnllnwy IIISfloot, (ION OF WASI F:WATER SYSTEM CAPACITY RIGHTS T ANNUAL FIXED CAPACITY RiGIITS AGENCY I 2 Average i Inerrmenfal Flow, Peak Flow. II MCD MCD_ lido Vi.[a [[)Id) . 18.33 19.52 Chula Visa INow) 19.25 1 19.52 3 J;,tMCD J1,0001.000 wa. Ihl. Ii 7.95 22,082 38,410 11 38.77 22,11X2 40339 I f dtn Cily uF Chula Vistas ocudud o 5% Irwreaeo in Cunuact Capacity, [hen Chula Viem's ooilo increna¢ -.3%. All other ayjcncao' cuvrs would decri ww pmpor[hnutlly. OS ''NERSI I1 P J 1'SEE. To'rA 1, Average Incremental 1 RSDP• COn, 70l Me%red SOP • AGENCY nlFlow, Peak Flmv_ titGD 1.000 1,0001hs. now. 00TSI 009MGD100016x, 1,000 lbs. TOTAL. oT4t41 MGD MGR lbs. bICD C huln Vista U1d} 2,910,6112 51,330x`6,3 0 52,04(1,479 9527,941 11,035,399 50 57,5611,599 92.441,160 928,34(1,743 111% hula Vista Yen 2,910.602 51,330,563 90 52.040,479 5551,269 511,035,399 SO 57,360,599 53,202,612 525,631524 11.3% Lass Updated: 5/29/2025 AGENCY OLD NEW Chula Vista S 29 ,344,745 9_24,631,524 Coronado 3 2,351,663 9 2,349,193 DclMor 20,447 5 26447 East Otoy Mean 1,072,840 1,072,103 1:I Cajon S 3.311,325 3,308,915 InipereIBeeeb S 3,397.789 S 3,394,165 LaMaa 5 _ E4,545,592 5 9,536,429 Lakcaida/Al ine S 305,946 E 305,7211 3,038,467 6,267,241 Lmun Grave 3041,92_0 National City S 6,275,5I2 they S 946,616 945,687 Padre Ilam 150,193 S 749,916 Poway S 4,347.435 S 4,343,173 Spring Vellcy 3 7,182,725 S 7,174,270 W infer omens 5 135,844 5 135,741 SUBTOTAL S 70,032.590 5 70,273,013 SI Wuslcwe1r 5192,904,305 S112,964.103 SO Walrr 5 1,457,146 S 1,457,146 SUBTOTAL S 184.361 734 S104,121309 Regional _led 5 S254,394.525 S 0254,394,325TOTAL Page 88 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Last Updakd- Si29."2025 Page 89 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda EXHIBIT F - METRO SYSTEM FLOW FORMULAS AND SAMPLING LOCATIONS JULY 2025 LEGEN O Billing and Sampling Meters 0 Billing Meters 0 Municipal Meter Page 90 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda CHULA VISTA Hollister .1., ST Main Meter + 1 Meter CV1 CV2 Bay Blvd Bay Blvd North South 106 (16 EDUS) EDUS) VCV5 PYara Bnn1IerMeter CV6M Autupark Lagoons Meter + Crossings + ( 0.03Ihwicr + Drive mgd) Acacia Combined Gunpowder Ave Housecounts Aoint 1 SV to CV (1,040 51 EDLis) 4 EDUS EDUS) Plaza Las Flnres N. Fifth Bonita 2. IJr Ave 6fetcr Meter Meter CV?M CV8 CV9 Acacia Otay Proctor Main Ave.. i Road a Valley ! ! Street V1STA Meter Meter Meter TOTAL CV10 Meter CV12 CV1A CV11 Page 91 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda CORONADO Amphibious Trans -Bay 1 LBase North Island CORONADO Meter CIM Meter C2 Meter C3 TOTAL Page 92 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DEL MAR Riviera Del Connection Meter Dh12 Mar #1 110 EDUs} (9b EDUg) Connection Del Mar DEL MAIL2Estates TOTAL 21 EDUs} (27 EDUs} - Page 93 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda EAST OTAY MESA East Otay Mesa EAST TAY 55.4 EDUs) N — MESA TOTAL Page 94 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda EL CAJON E1 Cajon Meter - -t I "- To LM Meter To LM FC18 -- r.h1a 321.5 EDUs) Winter Gardens Winter Gardens EL CA.JON Meter WG1M Y` (1,383 EDUs) TOTAI. Page 95 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda IMPERIAL BEACH 91& Imp. Elder St. ) I Palm Ave. Meter IBI Meter IB2M Meter IB3M2 Georgia Street Palm Avenue f IMPERIAL TOTAL17D.5 EDUs} {?9.5 L:UUs} TOTAL Page 96 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda LA MESA La Mesa 73^1 & Alvarado Alvarado Colorado North Sar. Trcmni Lab LM3)( l6 ® (22 Plant - (27 Meter EDUS} EDUs) (61 EL)Us) EDUS) Alvarado Blue East Jackson Kc4ny Training Lake Lake Ctr• (69 (349 ( 279 (28 2 EDU41 EDUS) EDUS) EDUS) EDUS) Lake Lake L a Lviesa Arago Murray South LM7 Umv 1• (292.7 (119.8 + LMIAM + Meter + (91 EDUS} EDU) Meter EDUS) u, 67 & R\ +osefield Vigo 204 Valencia Alamo University L58.5 (4 EDUS) 20 EDUS) EDUS) EDUS) (34 EDUS) 71Y"& 731d&E TOSV TOSV ToSV Colony Cajon r .. l• (551.5 (15.6 + ( 52 =e ;::7 LM2 LM5A EDUS) EDUS) EDUS) Meter Meter To S To LG From EC From EC LA j• ( LM8 + (921.7 LM4 (311 MESA Meter EDUS] Meter EDUS) TOTAL Page 97 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda LAKESIDEIALPINE LAKESIDE L ALPINE TOTAL Page 98 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda LEMON GROVE Total Winnett c8 Akins & Imperial & Lemon Net from Oriole St 69th 1... Viewerest Grove to La Mesa LG1M + LG2M LG4 3V (921.7 1547.63 EDUsMeterMeterMeter ) EDUs) 4G3;+ED+c:;Y!.TlcE; Angelus 69th & College Navy Avenue Evelyn Avenue Housing 12 EDUs) {4 EDUs) ( 498.6 {278 EDUs) EDUs) College 69 & College LEMON Grove Gibson Grove Way GROVE 25.6 EDUs) (3 EDUs) {161 EDUs) TOTAL Page 99 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda NATIONAL CITY 33r° St 2l"& 2262 West n 7th HooverHooverHToover15 NC Yard Wilson NC2 Meter NC3A NC3B NC3Cr & HC NCS Meter Meter Meter 2 EDUS Meter Southland achac Olive BonitaNordics: Stockman Ave. htd. Park North Avenue Paradise NC7M 5 to ( 76.5 + ( + (6 + (47MeterNleter i •:17U) ( 46 EDUS) EDUS) DUs ache ros ect Ave. NC' m SV SWRoad ter 5P In[er--P ^envy I3Qi11tA Road SV [a t n iSouthi (S2.?2'Y..} [:39.1f%1 Comp[amixcumromis- NCSM EDUS f36 EDUS) Meter ! teter M `1 f to 1 CDU;) Harbor Paradise Olive Delta St. L3alhergiaDriveVatAve. l2achael. NC6 Meter NC14 NC31 ll 263 NC12 EDUS Meter Meter Meter Meter ) 6 Nordics Lorenz Mariposa Bryanview ECUs) { l6 EDUS) E (42D(JF..l] (18 Ebbs Delta St Navy NATIONAL Sports291 ( 100.5 Center CITY EDUS) EDUs) TOTAL 7 EDUS Page 100 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda NAVY Amphibious Base North Island I11 ( Meter {C:2) Meter (C3) Page 101 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda OTAY Page 102 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda PADRE DAM Padre Dam Lakeside Simeon Dr. -TL;-J Padre Dam Meter PD1B Meter LS2 (413 EDUs) ";" Meter PD2 Cowles Mtn. + 1 Treviso PADRE DAM 270 EDUs]) . (186 EDUs] TOTAL Page 103 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda P0 WAY springhurst La Camino Holland Eastview Manda Del Norte Canyon Ct. Poz s ':• 53 POL PO3M PO4 Meter EDUs) Meter Meter Meter t Creek Stone Road Springhurst Can onStreetYPO T ALPOFi {727.1 A TOTAL Meter { 72 EDUs) EDUs) Page 104 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda SPRING VALLEY rhane ros ect AcreslAlta SV is NC NC w SV 5th (52.72%; Inter -Agency Inter -Agency Drive [39.1 Compromis. ( Clwmmise SVSM + (84.4 N to NC (144 EDU%) [36 Eol1s) Meter EDUs) RAetrr M1t From SubTotal ubvIe a NC To SV To S4' To SV La Hicsa Chula to SVt• Lhi2 l LM5A LM8 ICBM Vista to Meter Meter Meter (52 Meter SV EDUs) ubTo[a anzana NoelineLemParkbrook Grove BOtli[a lv rthinglon crow to Way Street Avenue Slretn 1 SV $O1 t ( 439 (197 (109 rar•.oura 1,547.63 Meter EDUS] EDUs) EDUs) EDUe) lnnsdale Ellenwood Delrose Avenue Cireenridgc Circle Avenue Crestmore Avenue ( North Avenue 51 {IUEDUs} { l[]9 (8 EDUs) EDUs) (9 EDUs) EDUS) Potrero Carlsbad Street Street SP Li1fG t ( 6 l Street Otay Net VALLEY TOTAL EDUs) EDUs) Sub3btaI Chula Vista to SV = Combined Housecounts —Acacia Ave + CV5 + CV6 + CV7M + CV$ + CV9 + CV10 + CVI1 +CV12 CVl4 Page 105 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda WINTER GARDENS Winter Gardens WG House Count WINTER GARDENS Meter{WG1M) 1,383 EDUs TOTAL Page 106 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda CITY OF SAN DIEGO ISD33 Meter ete Avenue ATeter {2551.6 EDUs) SD7B 1 eteMetert.i i Merer llo av f... SDI$ Anna SD19 I Street Meter t5 4 EDUs) LG to SD9 ® San Meter Qiego4. Net s et E Meter Sll ertMeter Commercial 1 SITCii 1,418.6 EDUs) ECIB Meter j SD7A Meter LM South to San Diego Net) SD2A SD2$' deter Meter SDD40M 20S2Meter Meter 2. SD6 Meter MCter. .. Padre Lakeside Dam Net Net Meter ti el SD9D ® NC7M Meter Meter Sports Area Blvd. 498 EDUs SD42M Meter i• Del Mar Net LM North to San Diego Net Beach Street 1, 944.2 EDUs) NC9M Meter Page 107 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda CITY OF SAN DIEGO (Continued) f Jl ive achae Mete + Mete (6 + Mete Ave. + eteMetcrMeter ({ Nieter ( 4G Me#er EDUs) EDUs Q c3•©,,' Rachae Me o Ave. MeSouth (43 EDUs) Alta San Diego brive HC SD 10 vti[ rk Amphnhea[ er • PCI Au[ o urk& 94.4 Through Meter o, eter EDUs) SPV Total f°'Y"'t" Georgia Palm ISZM Street Avenue I II13N12 5B1 Nieter ( 170.5 (29.5 'Meter Meter EDUs) EDUs) mall SD Elm 1• fouse SDI1 Si311 A SDI S Street 17 Count Meter Meter '.Meter Count ( 1, 455 EDUs) EDUs) USN4 USN5 USNS I.,>'. USN11 SAtif Meter` Ile#er + Meter ''' I Metcr TOTAL Page 108 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Exhibit G Sample of the Interest Calculation Page 109 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Eshlhlt G - Sample of thn Interest ('alculutlon (SCCl1OII 6.6) Purpose: To ducuinunt assumptions usal to account for the time vahio of money for shared Pure Water rods [Allocated Shared Costs) chat were a5a5ctl to be reeuncilW au a lei srt4nc based on tinal Phase I project costs. This is disuusscd in Sucl ion f,6; Rcallocal ion of PWP Costs incumd since FY2014 and cited in Section 6.6.1.3. Sue the example" Calcu later Spreadsiart- helow :uid 1CCorrrpanyi ng (oriole',. C 6 E F C H I J K L M Rime Ing ]Ielro Iriglnal MerPost to cmeunix Subject Balance Subject to Yearly lnlerml 3slimared PA Annual Interest 50150 Expenses From 3[Mru Spli[ SJrlglitat Water Original riginal Allocation to In rertst Interest Earnings share Rate lha[ Year Split Ys Mtero Sham Hater Shaer Share 50?e C-usl - Metro New Ac[ivity+ I'ntu ICompounded Average share of Sax Diego City Share%) Year Balance Prior Monthly) Interest Earnings} Treasurers) In[cres[ Earning) FY 2014 5630. 109 50% 50% 5315.055 5315.055 5283.549 531,505 31,505.46 5138,27 541.48 0.438% FY 2015 52, 476,617 5[146 33, 1,238,309 51 ,2311,309 51.114,478 123,831 5155.474,59 587[.33 261.40 0.559% FY 201E 54, 503,182 50°4 5019. 52.251.541 52.251.591 S2,026,432 5225,159 5381,505,03 55,971.03 5891.31 0.776% FY 2017 57, 398,893 50% 50% 3,699,447 51,699,447 5.3,.329,502 5369,945 754.420.72 911.150 19 2,445.03 1.075"., FY 2014 56. 194.711 50% 50% 53.1977,355 51.097,355 52,787.620 5309,736 51,072,306.3E 4.793.19 4.434,96 1,370°. FY 2019 7, 944,739 50?% 59% 53,922,369 53.922,369 53.530,132 5392_,237 51,479326.46 31,230.90 9,369.27 2.091% FY 2020 SiA18, 735 50% 50% 54,1109,367 64.009,.967 53,6091,411 5400,937 5!,911.594,09 543.708,6! 513,11^-.58 2.263% FY 2021 50% 50% 50 0 50 0 51,955,202.70 529,649.45 59,$94.84 1.506% FY 2022 50% 59% 1,984,852.16 16,257.11 4,877.13 0.316% FY 2023 32% 68% 2,001,109.26 535,993,!5 510.797.94 1.784% FY 2024 32% 68% 2,037,102.41 59,323.71 17,797.11 2.974% FY 2025 32% 61% I OD FY 2026 32% 63% TBD FY 2027 32% 68% TOII Totals 37,066, 99$ 19,533,493 518,533.493 516,690,143 1,853,359 513,764,299 243,077 72,923 N/A Pending Finn] Aiclirs; Estirnalod Final Mcrro 0 of Pure Water Costs [Oran) 4594 lunar vl JPA ° e Share of Melee Ex noes (Draft) 30°8 Page 110 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Exhibit G - Sample of the Interest Calculation (Section 6.6) (Coatlnued) Prnredurcx and Assamolions: The City prupuscs the following procedures be used to allocate these seeds. These costs. will be allocated 1 year after subshwlial complutiurt of Purr Water Phase I as pan of the annual Atalil of Metro costs Pnijecicd to be annual audit of mdroactivity for Fiscal Year 2_026). The City wi11 prepare a yearly updare m the calukunr as part of the preparnion I'ur the yearly nieun andil. Column Desc riu[fon: Cost Included (Column C) This column represenis cost subject to this ealcu later. lids includes. Porchasc Orders (and their associated expenditures) that have been split SIt' t51Y:: (5111511 POs) front 2014 in 2022 and have beam included ai pan of each yearly audit of M1ero JP.A Pure Wa ereists. This xheel is prepared by the City and reviewed by the )P.A's cesi ultimis On a yearly hasin to determltle samples for the Pure Water O&M cmtit.5. Alter awavding of all Pure Water conrtnkl iont conirecEi, new cases will site an updated percentage based oil actual awarded construction contracts. This date will be called out on tike purchase order sheer arui a new line net the culeltlutor will be oddest to inxk the change in pert rat allocation. Open purchase omlers using the 50151) pItt will be separated on the calcuaaior sheet until they are fully spent, dosed or amended in the new split. Original Splits a {Column & F.) These columns split the total en5Cs or the 50150 POs based on their nrigi sal'liaro between the water and Moire funds. This establishes cacti funds ill itial share of the casts Original Share (Column F & C) These columns split the total costs in Column C by the percentages in Celmnns ti and E. hictca Pat A1kn:uion Shawl Column H) This column uses Metro funds anal share of phase I costs, as a percentage of Iulal prujccl costs, and applies it to carts included in Column C'. This represents line actual share of mats hosed on the final allocation costs. tmounis Subject to Interest (Colunul ll This column [tikes the difference bet w;et the initial splils for Memo (Column Ft and the Metro post allocation share (Column H)- These are the new expemdi[nres Chain that fiscal year subject to i he interest calculation. Running Metro Balance Subject In This column takes any prior year balance in Column J, the pritar year accrued interest in Column K and adds the new• cs1ttild inures Cram Column I. This is the icial balanced Interest ( Caltntltl 1) used to Caleltlale each year's iiltct-5t owed. Yearly interest Earnings (Column K) This colulnn takes the anmal interest earnings shown in Column M and assumed monthly colnpnund ing of Metro balance in Column J, Compounding period is consistent with the Clip's monthly interest earnings paid en City funds. Estinimed PA share (Column L) This column es[tmnles the (tortion of inte tst carvings that is expected to be credited in the Panicipal ing Ay •noes. Individual .lyencies will be credited during the audit Col lmving one year after the substantial completion of Pure Water Phase 1, Agencies will be credited at wcighled eserage of costs lrum 2014 to one year rifler substantial completion of I'hase I. based on the PA's individual annual percent share of Metro costs. Annual Inter( ti Rate (Column Ad) This column shows the annual perrent relums out funds invested by [he City Treasurer. This is based on the Treasurers annual return on investmcn[s as invested udder tine City's investment policy. This is the raw used to calculate yearly interest owed. Nutcs This calculalar was designed to account for tike time value of money related to (50150 POs(. If additiutnal Phase I item OCIP expenses, Revenue, etc.} wed to aceouni Ion -the lime value of money, the nssumpt inns used in Columns I -K will nmnioing caasistcnl in [hose calculat ioln& Columns C through Fl and the associated penenttges used will be adapted to fu the types of cools being alloeatcd, Page 111 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Exhibit H Summary of Billings from County Water Authority Showing Costs for Untreated Water Page 112 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Sample Bill from the County Water Authority for all city of San Diego Water purchases for the month of San Diego County December 2024 to provide clarity for any sewer only providers. Additional Water Authority documentation will be provided at a later date walking from this bill to the A Public Agency purified water calculation 4677 Overland Avenue, San Diego, California, 92123-1233 858) 522-6673 FAX (858) 522-6561 Billed to: San Diego, City of The City of SAN DIEGO-) Service Address: 2797 Caminito Chollas San Diego, CA 92105 - December 2024 Invoice Summary Mailed: 1/10/2025 Invoice Number: 1224-15 Due Date: 2/14/2025 Page 1 of 8 Net Deliveries Current Month Volume (AF) Adjustment Volume AF) Tier 1 Total Treated Water Delivered 2,081.1 Tier 1 Total Untreated Water Delivered 7,970.5 Tier 1 Usage 10.051.6 Supply Charges Volume (AF) Rate ($/AF) Total ($) CWA Forced Delivery - Untreated 231.3 1,200.00 277,560.00 CWA Regular Meter Delivery - Treated 2,069.2 1,600.00 3,310,720.00 CWA Regular Meter Delivery - Untreated 12,973.7 1,200.00 Water Exchanges Volume (AF) Rate($/AF) Total ($) CWA Total To Other Agencies Untreated Water 5,285.0) 1,200.00 6,342,000.00) CWA Total From Other Agencies Treated Water 11.9 1,600.00 19,040.00 CWA Total From Other Agencies Untreated Water 50.5 1,200.00 60,600.00 Subtotal 5,222.6) 6,262,360.00) Subtotal 10,051.6 $ 1,899,752.40 Fixed Charges Total ($) CWA Customer Service Charge 933,611.00 CWA Emergency Storage Charge 2,197,725.00 CWA Infrastructure Access Charge 1,760,089.00 CWA Supply Reliability Charge 1,504,825.00 CYTD Volume (Al) 17,964.3 96,706.3 114,670.6 CYTD Volume (AF) 46,134.1 17,627.4 129, 500.4 193,261.9 CYTD Volume (AF) 79,483.9) 336.9 473.1 78,673.9) Generated Date: 01/ 10/2025 11:21 AM Page 113 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda hA San Diego County Water Authority A Public Agency 4677 Overland Avenue, San Diego, California, 92123-1233 858) 522-6673 FAX (858) 522-6561 Billed to: December 2024 Variable Charges VoltWo119)5umma Rate($/AF) Total (5) Transportation Charge - Meter Delivery 15,274.2 $ 189.00 $ 2,886,823.80 Transportation Charge - Water Exchange (5,222.6) $ 189.00 ($ 987,071.40) Variable Charges Transportation Charge - Meter Delivery Transportation Charge - Water Exchange San Diego, City of The City of r SAN DIEGO Service Address: 2797 Caniinito Chollas San Diego, CA 92105 - Volume (AF) Rate($/AF) 15,274.2 5,222.6) 189.00 189.00 Mailed: 1/10/2025 Invoice Number. 1224-15 Total ($) 2,886,823.80 987,071.40) Due Date: 2/14/2025 Page 2 of 8 Fixed Charges Total ($) MWD Capacity Reservation Charge MWD Readiness -to -Serve Charge 287,980.00 406,779.00 Subtotal 7,091,009.00 Current Balance $ 21,885,121.40 Previous Balance $ 17,919,593.50 Total Due And Payable $ 39,804,714.90 REMIT TO: SAN DIEGO COUNTY WATER AUTHORITY 4677 Overland Avenue San Diego, CA 92123-1233 Payment is due on the last business day of the month and shall be delinquent if not received in investable funds by 2 p.m. of the tenth business day of the following month. Delinquency charges are 1% of the total amount if paid within live business days of the delinquency, 2% thereafter. Reference San Diego County Water Authority Ordinance No. 2007-03 Revenue Collection Policy for a complete explanation of billing and payment for water deliveries. Generated Date: 01/70/2025 11:21 AM Page 114 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda hA San Diego County Water Authority A Public Agency 4677 Overland Avenue, San Diego, California, 92123-1233 858) 522-6673 FAX (858) 522-6561 Billed to: December 2024 San Diego, City of Invoice Detail The Cityof SAN al EGGS IMau1eth 1/10/2025 Due Date: 2/14/2025 Invoice Number: 1224-15 Page 3 of 8 Service Address: 2797 Caminito Chollas San Diego, CA 92105 - Supply Charges CWA Forced Delivery - Untreated Meter No Begin Read End Read 1000 CU. FT. AC. FT. Rate($/AF) Dollars($) Over Weir,WEIR 248,532 248,761 228 5.2 $ 1,200.00 $ 6,240.00 San Diego,02 2,012,753 2,022,602 9,849 226.1 $ 1,200.00 $ 271,320.00 Untreated Water Subtotal 231.3 $ 277,560.00 Regular Meter Delivery - Treated Meter No Begin Read End Read 1000 CU. FT. AC. FT. Rate($/AF) Dollars($) San Diego, 27 197,491 210,099 12,609 289.5 $ 1,600.00 $ 463,200.00 San Diego, 30 3,079 3,080 2 0.0 $ 1,600.00 $ 0.00 San Diego,l0 3,300,807 3,316,240 15,433 354.3 $ 1,600.00 $ 566,880.00 San Diego,ll 11,413,060 11,461,025 47,966 1,101.1 $ 1,600.00 $ 1,761,760.00 San Diego,14 5,034,606 5,046,789 12,183 279.7 $ 1,600.00 $ 447,520.00 San Diego,15 3,837,922 3,839,738 1,816 41.7 $ 1,600.00 $ 66,720.00 SD 18/21 Bypass, 7, 490 7,616 127 2.9 $ 1,600.00 $ 4,640.00 18/ 21 B/P Treated Water Subtotal 2,069.2 $ 3,310,720.00 Regular Meter Delivery - Untreated Meter No Begin Read End Read 1000 CU. FT. AC. FT. Rate($/AF) Dollars($) Generated Date 07/10/2025 11:27 AM Page 115 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda San Diego County Water Authority A Public Agency 4677 Overland Avenue, San Diego, California, 92123-1233 858) 522-6673 FAX (858) 522-6561 Billed to: San Diego, City of The Cityof * SAN DIEGO) Service Address: 2797 Caminito Chollas San Diego, CA 92105 - December 2024 Invoice Detail Mailed: 1/10/2025 Invoice Number: 1224-15 Due Date: 2/14/2025 Page 4 of 8 Supply Charges CWA Leakage ( SD -1),01 0 31 540 12.4 1,200.00 14,880.00 San Diego, 28 7,377,561 7,443,701 66,141 1,518.4 1,200.00 1,822,080.00 San Diego, DCFSV66 1,434,378 1,651,079 216,701 4,974.8 1,200.00 5,969,760.00 San Diego,05A 9,627,449 9,733,405 105,956 2,432.4 1,200.00 2,918,880.00 San Diego,058 8,808,476 8,932,713 124,237 2,852.1 1,200.00 3,422,520.00 San Diego,05C 1,405,570 1,428,831 23,261 534.0 1,200.00 640,800.00 San Diego,06A 2,967,595 2,969,351 1,756 40.3 1,200.00 48,360.00 San Diega,068 WEIR 1,591,412 1,591,432 20 0.5 1,200.00 600.00 San Diego,20 11,002,113 11,028,633 26,520 608.8 1,200.00 730,560.00 Untreated Water Subtotal 12,973.7 $ 15,568,440.00 Supply Charges Subtotal 15,274.2 $ 19,156,720.00 Supply Charges Total 15,274.2 $ 19,156,720.00 Water Exchanges CWA To Other Agencies Untreated Water Exchange Location To Agency AC. FT. Rate($/AF) Dollars($) Comments DCFSV6G San Diego County Water Authority 4,974.8) $ 1,200.00 5,969,760.00) credit for no purchase Del Mar (NA) Del Mar, City of 78.9) $ 1,200.00 94,680.00) San Vicente Acct San Diego County Water Authority 231.3) $ 1,200.00 277,560.00) To Other Agencies Untreated Water Subtotal 5,285.0) 6,342,000.00) Generated Date- 01/10/2025 17:27 AM Page 116 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda hA San Diego County Water Authority A Public Agency 4677 Overland Avenue, San Diego, California, 92123-1233 858) 522-6673 FAX (858) 522-6561 Billed to: San Diego, City of The City of SAN DIEGQJ Service Address: 2797 Caminito Chollas San Diego, CA 92105 - December 2024 Invoice Detail Mailed: 1/10/2025 Invoice Number: 1224-15 Due Date: 2/14/2025 Page 5 of 8 Water Exchanges CWA From Other Agencies Treated Water Exchange Location From Agency AC. FT. Rate($/AF) Dollars(S) Comments El Camino Real Santa Fe I.D. 1.0 1,600.00 1,600.00 Highland Ct. Santa Fe I.D. 0.2 1,600.00 320.00 Otay TP Otay W.D. 10.7 1,600.00 17,120.00 From Other Agencies Treated Water Subtotal 11.9 19,040.00 From Other Agencies Untreated Water Exchange Location From Agency AC. FT. Rate($/AF) Dollars($) Comments Fletcher Well Helix W.D. 50.5 1,200.00 60,600.00 From Other Agencies Untreated Water Subtotal 50.5 60,600.00 Water Exchanges Subtotal (5,222.6) ($ 6,262,360.00) Water Exchanges Total (5,222.6) ($ 6,262,360.00) Variable Charges Transportation Charge - Meter Delivery Meter No./Location AC. FT. Rate($/AF) Dollars($) Comments Leakage (SD -1),01 12.4 189.00 2,343.60 Over Weir,WEIR 5.2 189.00 982.80 San Diego, 27 289.5 189.00 54,715.50 San Diego, 28 1,518.4 189.00 286,977.60 San Diego, 30 0.0 189.00 0.00 San Diego, DCFSV66 4,974.8 189.00 940,237.20 Generated Date. 07/10/2025 11:21 AM Page 117 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda San Diego County Water Authority A Public Agency 4677 Overland Avenue, San Diego, California, 92123-1233 858) 522-6673 FAX (858) 522-6561 Billed to: San Diego, City of The Cityof SAN DIEGQ) Service Address: 2797 Caminito Chollas San Diego, CA 92105 - Variable Charges December 2024 Invoice Detail Mailed: 1/10/2025 Invoice Number: 1224-15 Due Date: 2/14/2025 Page 6 of 8 San Diego,02 226.1 189.00 42,732.90 San Diego,05A 2,432.4 189.00 459,723.60 San Diego,05B 2,852.1 189.00 539,046.90 San Diego,05C 534.0 189.00 100,926.00 San Diego,06A 40.3 189.00 7,616.70 San Diego,066 WEIR 0.5 189.00 94.50 San Diego,l0 354,3 189.00 66,962.70 San Diego,11 1,101.1 189.00 208,107.90 San Diego, 14 279.7 189.00 52,863.30 San Diego,l5 41.7 189.00 7,881.30 San Diego,20 608.8 189.00 115,063.20 SD 18/21 Bypass, 18/21 B/P 2.9 189.00 548.10 Transportation Charge - Meter Delivery Subtotal 15,274.2 2,886,823.80 Transportation Charge - Water Exchange Meter No./Location AC. FT. Rate($/AF) Dollars($) Comments DCFSV66 4,974.8) 189.00 940,237.20) credit for no purchase Del Mar (NA) 78.9) 189.00 14,912.10) El Camino Real 1.0 189.00 189.00 Fletcher We]1 50.5 189.00 9,544.50 Highland Ct. 0.2 189.00 37.80 Otay TP 10.7 189.00 52,022.30 San Vicente Acct 231.3) 189.00 43715.70) Transportation Charge - Water Exchange Subtotal 5,222.6) 987,071.40) Generated Date: 07/70/2025 11.2 AM Page 118 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda hA San Diego County Water Authority A Public Agency 4677 Overland Avenue, San Diego, California, 92123-1233 858) 522-6673 FAX (858) 522-6561 Billed to: December 2024 San Diego, City of Invoice Detail The Cityof Mailed: 1/10/2025 SAN 3IEGG) Due Date: 2/14/2025 Invoice Number: 1224-15 Page 7 of 8 Service Address: 2797 Caminito Chollas San Diego, CA 92105 Variable Charges Subtotal 10,051.6 1,899,752.40 Variable Charges Total 10,051.6 1,899,752.40 Fixed Charges CWA Customer Service Charge Annual ($) Monthly ($) Annual Customer Service Charge for Calendar Year 2024 11,203,332.00 Customer Service Charge December 933,611.00 Emergency Storage Charge Annual ($) Monthly ($) Annual Emergency Storage Charge for Calendar Year 2024 26,372,700.00 Emergency Storage Charge December 2,197,725.00 Infrastructure Access Charge Annual ($) Monthly ($) Annual Infrastructure Access Charge for Calendar Year 2024 21,121,068.00 Infrastructure Access Charge December 1,760,089.00 Supply Reliability Charge Annual ($) Monthly ($) Annual Supply Reliability Charge for Calendar Year 2024 18,057,900.00 Supply Reliability Charge December 1,504,825.00 MWD Capacity Reservation Charge Annual ($) Monthly ($) Annual Capacity Reservation Charge for Calendar Year 2024 3,455,760.00 Capacity Reservation Charge December 287,980.00 Readiness - to -Serve Charge Annual ($) Monthly ($) Annual Readiness -to -Serve Charge for Fiscal Year 2025 4,881,348.00 Readiness - to -Serve Charge December 406,779.00 Fixed Charges Subtotal 7,091,009.00 Current Balance 21,885,121.40 Previous Balance $ 17,919,593.50 Total Due And Payable $ 39,804,714.90 Generated Do[e: 07/10/2025 11:21 AM Page 119 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda San Diego County Water Authority A Public Agency 4677 Overland Avenue, San Diego, California, 92123-1233 858) 522-6673 FAX (858) 522-6561 Billed to December 2024 San Diego, City of Invoice Detail The Cityof SAN DIEGO' Service Address: 2797 Caminito Chollas San Diego, CA 92105 - REMIT TO: SAN DIEGO COUNTY WATER AUTHORITY 4677 Overland Avenue Sao Diego, CA 92123-1233 Mailed: 1/10/2025 Invoice Number: 1224-15 Due Date: 2/14/2025 Page8of8 Payment is due on the last business day of the month and shall be delinquent if not received in investable funds by 2 p.m. of the tenth business day of the following month. Delinquency charges are 1% of the total amount if paid within five business days of the delinquency, 2% thereafter. Reference San Diego County Water Authority Ordinance No. 2007.03 Revenue Collection Policy for a complete explanation of billing and payment for water deliveries. Generored Dote 07/10/2025 77:27 AM Page 120 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda EXHIBIT I LIST OF ADMINISTRATIVE AGREEMENTS NO. TITLE EFFECTIVE DATE AMENDMEN T DATE 1. Agreement Between City of San Diego and Participating Agencies in the Metropolitan Sewerage System for Unified Management of Industrial Waste Discharge Pretreatment and Enhanced Source Control Programs 2. 48- 10-23-25 4907-3419-6844 Page 121 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda EXHIBIT J EXHIBIT LIST Exhibit Name Amended Date A Metro Facilities (Electronic Exhibit); file name: 2025-10 Exhibit A Metro Facilities.aprx; time stamp of file: 10/23/2025 3:38 PM, software used to open and view file including version: ArcGIS Pro 3.5.0; included herewith as CD-ROM/DVD-ROM B Distribution of Wastewater System Capacity Rights C Administrative Protocol on Allocation of Operating Reserves and Debt Service Coverage to Participating Agencies D Notice Listin E Methodology for Contract Capacity Transfers F Metro System Flow Formulas and Sampling Locations G Sample of Interest Calculation H Summary of Billings from County Water Authority Showing Costs for Untreated Water I List of Administrativereements J Agreements Exhibit List 49- 10- 23-25 4947- 3419-6944 Page 122 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda RESOLUTION NO. 2026-009 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE SECOND AMENDED AND RESTATED WASTEWATER DISPOSAL AGREEMENT, DIRECTING THE METRO JPA REPRESENTATIVE TO SUPPORT THE SAME AT METRO JPA MEETINGS, AND AUTHORIZING MAYOR TO EXECUTE SAME WHEREAS, the Point Loma Wastewater Treatment Plant (“PLWTP”) is a regional facility in the Metropolitan Sewerage System (“Metro System”) and is permitted to treat 240 million gallons per day (“MGD”) of regional wastewater to an Advanced Primary Level. Operated by the City of San Diego, the PLWTP was constructed in 1963 and is the backbone of the Metro System; and WHEREAS, the City of Chula Vista’s average of 16.7 MGD of wastewater is treated at PLWTP. The City of Chula Vista is one of 12 Participating Agencies (“PAs”) that convey wastewater to PLWTP for treatment; and WHEREAS, the Metro JPA is a joint powers agency composed of the 12 local public PAs each having the authority to provide and contract for the conveyance, treatment, and disposal of wastewater. The Metro JPA and the City of San Diego are partners in overseeing the PLWTP; and WHEREAS, the Federal Clean Water Act, passed in 1972, was amended to allow a modified permit (waiver of secondary treatment) if the discharger could demonstrate the safe discharge of wastewater to the receiving water; and WHEREAS, the 1998 Regional Wastewater Disposal Agreement was created, approved per Resolution No. 18968, and the Metropolitan Wastewater Commission (Metro Commission) was formed; and WHEREAS, the City of San Diego is implementing a phased, multi-year program designed to achieve compliance with the Clean Water Act and regionally produce up to 83 million gallons per day of safe, reliable potable water using new, expanded, or modified facilities, some of which will include Metro System facilities, in order to achieve secondary equivalency at the Point Loma Wastewater Treatment Plant; and WHEREAS, 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 of by discharging it into the Pacific Ocean; and WHEREAS, the City of San Diego and the Participating Agencies, amended the 1998 Agreement by executing an Amended and Restated Regional Wastewater Disposal Agreement (the ARA”), approved per Resolution No. 2018-187, to address the costs and revenues associated with Phase 1 of the Pure Water Program, including specific cost allocations related to the construction, expansion, and/or modification of Metro System facilities and Water Repurification System facilities designed to produce up to 30 MGD of Repurified Water (“Phase 1”); and Docusign Envelope ID: 0A0F6390-9883-4DD8-B670-6DAF17958B03 Page 123 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Resolution No. 2026-009 Page No. 2 WHEREAS, Section 14.2 of the ARA provided that the Parties may amend the ARA by a written agreement between the City of San Diego and all Participating Agencies stating the Parties’ intent to amend or supplement the agreement; and WHEREAS, in an effort to address in good faith the outstanding items described in Section 2.9 of the ARA, and comprehensively and equitably address the costs, revenues, and billing system associated with the Pure Water Program and the related construction, expansion , and/or modification of Metro System facilities beyond Phase 1, the City of San Diego and Participating Agencies, including the City of Chula Vista wish to amend and restate the ARA as provided herein. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it approves the Second Amended and Restated Regional Wastewater Disposal Agreement between the City of San Diego and the Participating Agencies, in the form presented, with such modifications as may be required or approved by the City Attorney, a copy of which shall be kept on file in the Office of the City Clerk, and authorizes and directs the Mayor to execute the same . BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it authorizes and directs the Metro JPA representative to support the Second Amended and Restated Regional Wastewater Disposal Agreement at Metro JPA meetings. SIGNATURES ON THE FOLLOWING PAGE] Docusign Envelope ID: 0A0F6390-9883-4DD8-B670-6DAF17958B03 Page 124 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda esolution No. 2026-009 Page No. 3 Presented by Approved as to form by Eddie Flores Marco A. Verdugo Assistant Director, City Attorney Engineering & Capital Projects Department PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 20th day of January 2026, by the following vote: AYES: Councilmembers: Chavez, Fernandez, Inzunza, Preciado, and McCann NAYS: Councilmembers: None ABSENT: Councilmembers: None John McCann, Mayor ATTEST: Kerry K. Bigelow, MMC, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2026-009 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 20th day of January 2026. Executed this 20th day of January 2026. Kerry K. Bigelow, MMC, City Clerk Docusign Envelope ID: 0A0F6390-9883-4DD8-B670-6DAF17958B03 Page 125 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 6-12-26 4932-3639-7490 SECOND AMENDED AND RESTATED REGIONAL WASTEWATER DISPOSAL AGREEMENT BETWEEN THE CITY OF SAN DIEGO AND THE PARTICIPATING AGENCIES IN THE METROPOLITAN SEWERAGE SYSTEM Page 126 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 6-12-26 4932-3639-7490 TABLE OF CONTENTS Page 1. DEFINITIONS .................................................................................................................... 3 2. OWNERSHIP AND OPERATION OF THE METRO SYSTEM ...................................... 9 2.1 Rights of the Parties ................................................................................................ 9 2.2 Metro System Services ........................................................................................... 9 2.3 Flow Commitment ................................................................................................ 10 2.4 Funding Obligations.............................................................................................. 10 2.5 Limitations on Types and Condition of Wastewater ............................................. 11 2.6 Enforcement Actions ............................................................................................. 12 2.7 Right of First Refusal ............................................................................................ 13 2.8 Uniform Enforcement of Pretreatment Program by City ...................................... 14 2.9 Wastewater Generated at Military Bases .............................................................. 16 3. CAPACITY RIGHTS ........................................................................................................ 16 3.1 Contract Capacity.................................................................................................. 16 3.2 Inter-Agency Transfers of Contract Capacity ....................................................... 17 3.3 New Contract Capacity ......................................................................................... 18 3.4 Reductions in Metro System Capacity .................................................................. 18 3.5 Restrictions on Veto of Transfers and Acquisitions of Capacity ........................... 18 3.6 Amendments to Exhibits B ................................................................................... 18 3.7 The South Bay Ocean Outfall ............................................................................... 19 4. FINANCE, BUDGETING, AND ACCOUNTING: PAYMENT AND MONITORING PROVISIONS ................................................................................................................... 19 4.1 Payment for Metro System Facilities .................................................................... 19 4.2 Payment for Additional Metro System Facilities .................................................. 19 4.3 Payment for Operation and Maintenance ............................................................. 19 4.4 Charges Based on Flow, Strength and Fixed Capacity: Exception ....................... 20 4.5 Monitoring Flow and Strength .............................................................................. 21 5. FINANCE, BUDGETING, AND ACCOUNTING: SYSTEM OF CHARGES............... 22 5.1 Charges Authorized ............................................................................................... 22 5.2 Functional Allocated Billing (FAB) ...................................................................... 22 5.3 Metro System Costs .............................................................................................. 23 5.4 Excluded Costs...................................................................................................... 23 5.5 Metro System Revenues and Allocations ............................................................. 24 5.6 Excluded Revenue ................................................................................................ 24 5.7 Estimate and Billing Schedule and Year End Adjustment .................................... 24 5.8 Financial Statements ............................................................................................. 25 5.9 Debt Financing ...................................................................................................... 26 5.10 Allocation of Operating Reserves and Debt Service Coverage ............................ 26 5.11 Amending the System of Charges ......................................................................... 26 Page 127 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 6-12-26 4932-3639-7490 6. FINANCE, BUDGETING, AND ACCOUNTING: PURE WATER PROGRAM COST ALLOCATION AND REVENUES – PHASE 1 .............................................................. 26 6.1 North City Water Reclamation Plant Modification ............................................... 26 6.2 New, Expanded or Modified Metro System Facilities .......................................... 26 6.3 Costs Excluded from Metro System Costs – Phase 1 ........................................... 27 6.4 North City Water Reclamation Plant Improvement Costs Included as Metro System Costs ......................................................................................................... 27 6.5 Reallocation of PWP Costs incurred since FY 2014 ............................................ 28 6.6 Revenue Sharing for Repurified Water ................................................................. 29 6.7 Capital Expense Rate ............................................................................................ 30 6.8 Amending Pure Water Program Cost Allocation and Revenues – Phase 1 .......... 33 7. FINANCE, BUDGETING, AND ACCOUNTING: PURE WATER PROGRAM COST ALLOCATION AND REVENUES – PHASE 2 .............................................................. 33 7.1 Pure Water Program – Phase 2 .............................................................................. 33 7.2 Costs Excluded As Metro System Costs ............................................................... 33 7.3 Revenue Sharing for Repurified Water – Phase 2 ................................................. 34 7.4 Capital Expense Rate – Phase 2 ............................................................................ 34 8. FUTURE NEGOTIATIONS AND COOPERATION ....................................................... 34 9. THE METRO COMMISSION ......................................................................................... 34 9.2 Advisory Responsibilities of Metro JPA ............................................................... 35 9.3 Delegation of Decision-Making Authority of the Metro JPA ............................... 35 9.4 Standing ................................................................................................................ 35 10. DISPUTE RESOLUTION ................................................................................................ 35 10.1 Mandatory Non-Binding Mediation ..................................................................... 36 10.2 Selection of Mediator ............................................................................................ 36 10.3 Mediation Expenses .............................................................................................. 36 10.4 Conduct of Mediation ........................................................................................... 36 10.5 Mediation Results ................................................................................................. 36 10.6 Performance Required During Dispute ................................................................. 36 11. INSURANCE .................................................................................................................... 36 11.1 City Shall Maintain All Required Insurance ......................................................... 36 11.2 Substantially Equivalent Coverage ....................................................................... 37 12. INTERRUPTION OF SERVICE ...................................................................................... 37 13. NOTICES REQUIRED UNDER AGREEMENT ............................................................ 37 14. EFFECTIVE DATE AND EXPIRATION ........................................................................ 37 14.1 Effective Date ....................................................................................................... 37 14.2 Expiration .............................................................................................................. 38 14.3 Contract Capacity Rights Survive Expiration ....................................................... 38 14.4 Abandonment ........................................................................................................ 38 Page 128 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 6-12-26 4932-3639-7490 15. ADMINISTRATIVE AGREEMENTS ............................................................................. 38 15.1 Use and Process for Administrative Agreements .................................................. 38 16. GENERAL ........................................................................................................................ 40 16.1 Exhibits ................................................................................................................. 40 16.2 Electronic Exhibits and Attachments .................................................................... 40 16.3 Amendments to Agreement ................................................................................... 41 16.4 Construction of Agreement ................................................................................... 43 16.5 Declarations Re: Agreement ................................................................................. 44 16.6 Right to Make Other Agreements ......................................................................... 45 16.7 Statute of Limitations to Resolve Billing Issues ................................................... 45 16.8 Counterparts and Electronic Signatures ................................................................ 45 16.9 Transparency ......................................................................................................... 46 16.10 Incorporation of Recitals ....................................................................................... 46 16.11 Joint Exercise of Power ........................................................................................ 46 ACRONYM LIST: ARA Amended and Restated Re ional Wastewater Disposal A reement COD Chemical Ox en Deman CIP Capital Improvement Pro ect(s) CPM Construction Pro ect Mana ement CWA San Die o Count Water Authorit ECAWP JPA East Count Advanced Water Purification Joint Powers Authorit FAB Functional Allocated Billin MBC Metropolitan Biosolids Cente MGD Millions of Gallons per Da NCWRP North Cit Water Reclamation Plant NPDES National Pollutant Dischar e Elimination S stem PLWTP Point Loma Wastewater Treatment Plant PWP Pure Water Pro ram RSDP Re ect Stream from Demineralization Process SBOO South Ba Ocean Outfall SBWRP South Ba Water Reclamation Plant TSS Total Suspended Solids Page 129 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 1 - 6-12-26 4932-3639-7490 SECOND AMENDED AND RESTATED REGIONAL WASTEWATER DISPOSAL AGREEMENT THIS SECOND AMENDED AND RESTATED REGIONAL WASTEWATER DISPOSAL AGREEMENT (“Agreement”) is made and entered into this 1st day of July, 2026, by and between the CITY OF SAN DIEGO, a municipal corporation (the “City”), on the one hand; and the CITY OF CHULA VISTA, a municipal corporation; the CITY OF CORONADO, a municipal corporation; the CITY OF DEL MAR, a municipal corporation; the CITY OF EL CAJON, a municipal corporation; the CITY OF IMPERIAL BEACH, a municipal corporation; the CITY OF LA MESA, a municipal corporation; the LEMON GROVE SANITATION DISTRICT, a political subdivision of the State of California; the CITY OF NATIONAL CITY, a municipal corporation; the CITY OF POWAY, a municipal corporation; the OTAY WATER DISTRICT, a political subdivision of the State of California; the PADRE DAM MUNICIPAL WATER DISTRICT, a political subdivision of the State of California; and the SAN DIEGO COUNTY SANITATION DISTRICT, a political subdivision of the State of California (collectively, the Participating Agencies”), on the other hand. The City and the Participating Agencies may be referred to herein individually as a “Party,” and collectively as the “Parties.” RECITALS WHEREAS, the City and the Participating Agencies (or their predecessors in interest) entered into that certain Regional Wastewater Disposal Agreement dated May 18, 1998 (the “1998 Agreement”), which provided, among other things, for certain contract rights to capacity in the Metropolitan Sewerage System, a system of wastewater conveyance, treatment, and disposal facilities (“Metro System”) and the establishment of a mechanism to fund the planning, design, construction, operation, and maintenance of the Metro System by the City and the Participating Agencies; and WHEREAS, the purposes of the 1998 Agreement were: (1) to replace the prior-existing sewage disposal agreements between the City and the Participating Agencies; (2) to provide certain contract rights to capacity in the Metro System to the Participating Agencies; (3) to establish a mechanism to fund the planning, design, construction, operation and maintenance of the Metro System by the City and the Participating Agencies as necessary to provide hydraulic capacity, and to comply with applicable law and with generally accepted engineering practices; and (4) to establish a system of charges which allocates the costs of the planning, design and construction of such new wastewater conveyance, treatment and disposal facilities as are necessary solely to provide for new capacity on a fair and equitable basis; and WHEREAS, on April 29, 2014 the San Diego City Council gave its approval and support for the Pure Water San Diego program by adoption of Resolution No. R-308906, which approved and supported the City’s efforts to develop an implementation strategy to offload wastewater flow from the Point Loma Wastewater Treatment Plant through implementation of potable reuse, resulting in effluent discharged to the Pacific Ocean being equivalent to what would be achieved by upgrading the Point Loma Wastewater Treatment Plant to a secondary treatment plant secondary equivalency); and Page 130 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 2 - 6-12-26 4932-3639-7490 WHEREAS, the City is implementing a phased, multi-year program designed to achieve compliance with the Clean Water Act and regionally produce up to 83 million gallons per day of safe, reliable potable water using new, expanded, or modified facilities, some of which will include Metro System facilities, in order to achieve secondary equivalency at the Point Loma Wastewater Treatment Plant; and WHEREAS, the Pure Water Program will not only benefit the City by producing repurified water, but also the Participating Agencies and their wastewater customers, especially if secondary equivalency is recognized through federal legislation amending the Clean Water Act. Specifically, implementation of the Pure Water Program will reduce wastewater discharges to the Point Loma Wastewater Treatment Plant, part of the Metro System where a large portion of the Participating Agencies’ wastewater is currently treated and disposed by discharging it into the Pacific Ocean. By diverting wastewater from the Point Loma Wastewater Treatment Plant and reducing the effluent discharged into the Pacific Ocean, the City and the Participating Agencies will potentially avoid billions of dollars in unnecessary capital, financing, energy, and operating costs to upgrade the Point Loma plant to secondary treatment at full capacity. Avoiding such costs would result in significant savings for regional wastewater customers and achieve environmental benefits by reducing ocean discharge; and WHEREAS, on or around November 2019, the East County Advanced Water Purification Joint Powers Authority (the “ECAWP JPA”) was created to implement a potable reuse program to improve local and regional water supply reliability to supply advanced treated recycled water to East San Diego County through the East County Advanced Water Purification Project (the ECAWP Project”). The ECAWP Project is planned to capture and treat approximately 15 million gallons per day of wastewater that would otherwise be disposed of in the Metro System to produce an annual average supply of approximately 11.5 million gallons per day of new local drinking water. By diverting some wastewater and wastewater content away from the Metro System, the ECAWP Project has the ability to aid and contribute towards the City and region’s efforts to produce a regional annual average of up to 83 million gallons per day of water suitable for potable reuse by December 31, 2035, as described in the Cooperative Agreement in Support of Pure Water San Diego executed by the City and certain environmental stakeholders on December 9, 2014. The ECAWP Project includes a residuals bypass system that will convey RSDP (as defined herein) from the advanced water purification facility, and Centrate from the solids dewatering process of the solids handling facility, to an existing regional sewage gravity pipeline owned and operated by the City for treatment and disposal; and WHEREAS, effective on or around August 22, 2021, the City and the Participating Agencies amended the 1998 Agreement by executing an Amended and Restated Regional Wastewater Disposal Agreement (the “ARA”) to address the costs and revenues associated with Phase 1 of the Pure Water Program, including specific cost allocations related to the construction, expansion, and/or modification of Metro System facilities and Water Repurification System facilities designed to produce up to 30 million gallons per day of Repurified Water (“Phase 1”). The ARA provided that within one year of its effective date, the Parties intended to meet and negotiate in good faith regarding one or more amendments to the ARA or to its Exhibits to address multiple outstanding items described in Section 2.9 of the ARA; and Page 131 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 3 - 6-12-26 4932-3639-7490 WHEREAS, Section 14.2 of the ARA provided that the Parties may amend the ARA by a written agreement between the City and all Participating Agencies stating the Parties’ intent to amend or supplement the agreement; and WHEREAS, in an effort to address in good faith the outstanding items described in Section 2.9 of the ARA, and comprehensively and equitably address the costs, revenues, and billing system associated with the Pure Water Program and the related construction, expansion, and/or modification of Metro System facilities beyond Phase 1, the City and Participating Agencies wish to amend and restate the ARA as provided herein. NOW, THEREFORE, in consideration of the mutual promises set forth in this Agreement, the City and the Participating Agencies restate and amend the ARA and agree as follows: 1. DEFINITIONS 1.1 Administrative Agreement shall refer to a formal binding contract, approved under the process set forth in Section 15 of this Agreement, which implements technical, administrative, operational, and/or procedural details of this Agreement. 1.2 Administrative Approval is an approval mechanism authorized by this Agreement that refers to a City administrative process by which the subject of a particular action is presented to the City’s Director of the Public Utilities Department or their designee for approval, based on discussion and evaluation according to sound engineering standards if applicable, and any additional requirements related to review for the action requiring the City’s Administrative Approval as set forth in this Agreement. 1.3 Annual Average Daily Flow is the number, in millions of gallons of wastewater per day (“MGD”), calculated by dividing total Flow on a fiscal year basis by the number of days in the applicable year, which is a term used for billing purposes. 1.4 ARA shall mean the Amended and Restated Regional Wastewater Disposal Agreement between the City and the Participating Agencies effective August 22, 2021. 1.5 Capital Expense Rate shall mean the same as the term is defined in Section 6.7.2. 1.6 Capital Improvement Costs means all costs of the planning, design, financing, construction, and/or replacement necessary to render a capital project facility fully operational, including upgrades and reconstruction, consistent with the City’s policies and procedures. This includes costs for planning and environmental work; procurement of consultants or contractors to perform such work; construction management; investigative studies and pre-design work; labor and materials; inspection and testing; and financing cost including interest on financial instruments. 1.7 Centrate shall mean the liquid byproduct that results from the dewatering of digested solids as part of wastewater treatment processes. 1.8 Chemical Oxygen Demand or COD means the measure of the chemically decomposable material in wastewater, as determined by the procedures specified in the most Page 132 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 4 - 6-12-26 4932-3639-7490 current edition of “Standard Methods for the Examination for Water and Wastewater,” or any successor publication which establishes the industry standard. 1.9 City shall mean and refer to the City of San Diego. 1.10 City’s Water Utility shall mean any and all facilities, properties, improvements and works at any time owned, controlled or operated by the City as part of the public utility system of the City for water purposes, for the development, obtaining, conservation, production, storage, treatment, transmission, furnishing and distribution of water and its other commodities or byproducts for public and private use (whether located within or without the City), and any related or incidental operations designated by the City as part of the Water System, including reclaimed and re-purified water. 1.11 City Water Utility PWP Costs are those Pure Water Program costs allocated to the City’s Water Utility and therefore excluded as Metro System Costs under Section 6.3 of this Agreement. 1.12 Contract Capacity is the contractual right possessed by each Participating Agency to discharge wastewater into the Metro System pursuant to this Agreement up to the limits set forth in Exhibit B, Distribution of Wastewater System Capacity Rights, attached hereto. 1.13 Contract Capacity Transfers shall refer to the capacity transfers initiated based on Metered Flow and Strength data using the methodology set forth in Exhibit E, Methodology for Contract Capacity Transfers, which change a Participating Agency’s Contract Capacity, as set forth more fully in Section 4.4.3.1 and 4.4.3.2. These changes will generally be made to a single Participating Agency’s annual Contract Capacity to correct capacity exceedances but can also be made to reduce a Participating Agency’s Contract Capacity. 1.14 CWA shall mean the San Diego County Water Authority. 1.15 ECAWP JPA shall mean the East County Advanced Water Purification Joint Powers Authority. The ECAWP JPA itself is not a Participating Agency or a Party to this Agreement. 1.16 ECAWP JPA Agencies shall mean collectively the City of El Cajon, the Padre Dam Municipal Water District, and the San Diego County Sanitation District. 1.17 ECAWP Project shall mean the ECAWP JPA’s project to capture and treat wastewater that would otherwise be disposed of in the Metro System to produce an annual average supply of approximately 11.5 MGD of new local drinking water, as well as other byproducts such as recycled water and energy recovery facilities. 1.18 Fixed Capacity shall mean the capacities for Monthly Average Daily Flow, Incremental Peak Flow, RSDP, COD and TSS for each agency as set forth in Exhibit B. 1.19 Fixed Capacity Charge shall mean the charges set forth in Exhibit B that are identified as “Fixed Capacity Charges” that represent the Parties’ proportional charges for Page 133 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 5 - 6-12-26 4932-3639-7490 maintaining the Metro System. Items such as debt service are also included in the Fixed Capacity Charges. 1.20 Flow shall refer to the flow of wastewater discharged by the City and/or one or more Participating Agency/ies into the Metro System. 1.21 Functional Allocated Billing or FAB shall mean the method for distributing all capital, operations, and maintenance Metro System Costs and Revenues on an annual basis by grouping expenses according to their purposes and the current approved Functional-Design Methodology. 1.22 Functional-Design Methodology shall mean the process of allocating fixed and variable Operation and Maintenance Costs and Capital Improvement Costs to Flow, RSDP and Strength parameters recognizing the benefits of both the design criteria and the primary function of a unit process. 1.23 Incremental Peak Flow shall mean the Peak Flow minus the Monthly Average Daily Flow. 1.24 Industrial Wastewater means all wastewater, excluding domestic wastewater, and shall include all wastewater from any producing, manufacturing, processing, institutional, commercial, service, agricultural, or other operation. These may also include wastes of human origin similar to domestic wastewater. 1.25 Industrial User means a discharger of Industrial Wastewater to a public sewer. A Participating Agency may be an Industrial User. 1.26 Joint Administrative Approval Process is an approval process authorized by this Agreement by which an Administrative Agreement may be created, revised, supplemented, replaced or terminated, subject to the review and approval process set forth more fully in Section 15. 1.27 MBC Return shall mean and refer to Centrate created at the Metropolitan Biosolids Center, 5240 Convoy St, San Diego, CA 92111. MBC Return shall contain Metered Flow, TSS and COD. 1.28 Metered Flow shall mean the amount or volume of wastewater captured by meters that exist throughout the Metro System, estimates from unit count areas, or agreed upon estimates of flows where unit counts are not appropriate. When meters are out of service, estimates can be used to fill in data gaps. These meters, which may or may not be owned by the City, are further defined in Exhibit F, Metro System Flow Formulas and Sampling Locations, which may be amended from time to time. 1.29 Metro Commission or Metro JPA is the advisory body described under Section 9. 1.30 Metro System Costs shall mean, at a minimum, those costs set forth in Section 5.3 and as otherwise set forth in this Agreement. Page 134 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 6 - 6-12-26 4932-3639-7490 1.31 Metro System Revenues are those revenues set forth in Section 5.5. 1.32 Metropolitan Sewerage System or Metro System shall mean and consist of those facilities which are listed, shown and/or described in Exhibit A, Metro Facilities (Electronic Exhibit); file name: [Enter]; time stamp of file, software used to open and view file including version; included herewith as CD-ROM/DVD-ROM, including any amendments thereto authorized by this Agreement. Exhibit A includes current constructed facilities and proposed future facilities. 1.33 Monthly Average Daily Flow is the number, in MGD, calculated by dividing total Flow on a monthly basis by the number of days in that month. 1.34 Municipal System shall mean the City’s wastewater collection system, consisting of pipelines and pump stations, which collects wastewater within the City of San Diego and conveys it to the Metropolitan Sewerage System for treatment and disposal. 1.35 New Contract Capacity shall mean capacity in excess of the Contract Capacity set forth in Exhibit B and authorized subject to Section 3.3. 1.36 North City Water Reclamation Plant or NCWRP is the wastewater treatment facility located at 4949 Eastgate Mall in San Diego, which includes four major processes: primary treatment, secondary treatment, tertiary treatment, and disinfection. 1.37 Operation and Maintenance Costs are the costs to operate, maintain, manage, repair, and keep the Metro System conveyance, disposal, treatment, and reuse facilities functioning in accordance with all applicable laws, rules, and regulations. 1.38 Participating Agencies shall mean all the local governments and agencies that executed this Agreement other than the City. 1.39 Peak Flow represents the wastewater flow in millions of gallons of wastewater per day that is captured in the highest 1-hour period in a fiscal year. 1.40 Point Loma Wastewater Treatment Plant or PLWTP is the main City wastewater treatment plant with a Monthly Average Daily Flow capacity of 240 million gallons per day and a peak flow capacity of 432 million gallons per day (as of the date of this Agreement). It is an advanced primary treatment plant which includes four major processes: screening, grit removal, chemically enhanced sedimentation, and digestion. 1.41 Pooled Capacity shall refer to the capacity in the Metro system greater than that which has been designated in Exhibit B. Pooled Capacity amounts are shown in Exhibit E, Methodology for Contract Capacity Transfers, and may be recalculated from time to time as set forth more fully in this Agreement. 1.42 Postage Stamp Methodology is a methodology that can allocate a single uniform cost to any of the annual Contract Capacity cost parameters identified in Exhibit B. This methodology assumes that even though a particular discharger may not utilize all of the infrastructure, all dischargers into the Metro System benefit from the shared infrastructure. Page 135 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 7 - 6-12-26 4932-3639-7490 1.43 Projected Future Strength and Flow Amounts are the five (5) values described below: 1.43.1 Projected Future Metro Flow is the estimated amount of Monthly Average Daily Flow, stated in millions of gallons per day (MGD), that the City and each Participating Agency are projected to have in a designated future year – currently, the 2050 fiscal year. Projected Future Metro Flow for each Party is stated in Exhibit B. 1.43.2 Projected Future Incremental Peak Flow is the estimated amount of Annual Incremental Peak Flow, stated in millions of gallons per day (MGD), that the City and each Participating Agency are projected to have in a designated future year – currently, the 2050 fiscal year. Projected Future Incremental Peak Metro Flow for each Party is stated in Exhibit B. 1.43.3 Projected Future RSDP Flow is the estimated amount of RSDP Flow, stated in millions of gallons per day (MGD), that the City and each Participating Agency are projected to have in a designated future year – currently, the 2050 fiscal year. Projected Future RSDP Flow for each Party is stated in Exhibit B. 1.43.4 Projected Future COD Flows is the estimated amount of Chemical Oxygen Demand (COD), stated in pounds per day, that the City and each Participating Agency are projected to have in a designated fiscal year – currently, the 2050 fiscal year. Projected Future COD Flows for each Party are stated in Exhibit B. 1.43.5 Projected Future TSS Flows is the estimated amount of Total Suspended Solids (TSS) stated in pounds per day, that the City and each Participating Agency are projected to have in a designated fiscal year – currently, the 2050 fiscal year. Projected Future TSS Flows for each Party are stated in Exhibit B. 1.44 Pure Water Capital Melded Percentage is the proportionate share stated in Column 7 of Exhibit B (formerly Column 12 of Exhibit G of the ARA), by which Pure Water Program Capital Improvement Costs, Repurified Water Revenue, and the Capital Expense Rate will be allocated among the City and the Participating Agencies. The Pure Water Capital Melded Percentage is based on each Party’s proportionate share of Projected Future Metro Flow, Projected Future TSS Flows, and Projected Future COD Flows, which proportions are weighted as described in Footnote 5 of Exhibit B. 1.45 Pure Water Program or PWP is the City’s phased, multi-year program designed to produce up to 83 million gallons per day of Repurified Water using new, expanded, or modified facilities, some of which will include Metro System facilities. 1.46 PWP Phase 1 or Phase 1 shall mean the first phase of the Pure Water Program, which modifies/constructs Metro System and Water Repurification System facilities and is designed to produce an annual average of 30 million gallons per day of Repurified Water. 1.47 PWP Phase 2 or Phase 2 shall mean the second phase of the Pure Water Program which modifies/constructs Metro System and Water Repurification System facilities and is designed to produce up to an additional annual average of 53 million gallons per day of Repurified Water. Page 136 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 8 - 6-12-26 4932-3639-7490 1.48 Recycled Water shall have the definition set forth in Title 22, Division 4 of the California Code of Regulations and shall mean water which, as a result of treatment of wastewater, is suitable for a direct beneficial use or a controlled use that otherwise could not occur. 1.49 Reject Stream from Demineralization Process or RSDP is a flow reject stream and treatment byproduct from a demineralization process at a potable reuse facility that primarily contains liquid and salts. 1.50 Repurified Water shall mean water which, as a result of advanced treatment of Recycled Water, is suitable for use as a source of domestic (or potable) water supply. 1.51 Repurified Water Revenue is the cost savings that will be realized when the City’s Water Utility’s annual costs per-acre foot for Repurified Water, including City Water Utility PW Costs, are less than the purchase costs per-acre foot for comparable water from the San Diego County Water Authority, as further described in Section 6. 1.52 Residuals shall mean RSDP and Centrate. In the future, Residuals may include other waste byproducts if the Parties agree in writing that other byproducts may be discharged into the Metro System. 1.53 South Bay Ocean Outfall or SBOO is the facility that is jointly owned by the International Boundary & Water Commission (U.S. Section IBWC) and the City. The outfall conveys and discharges treated effluent from the IBWC’s International Wastewater Treatment Plant and treated effluent from the City’s South Bay Water Reclamation Plant. As of the date of this Agreement, the outfall has a current Average Daily Flow Capacity of 174 million gallons per day. As of the date of this Agreement, the City owns 39.94% of the capacity of the outfall and the balance of the capacity is owned by the IBWC. 1.54 South Bay Water Reclamation Plant or SBWRP is the wastewater treatment facility located at 2411 Dairy Mart Road in San Diego, which includes four major processes: primary treatment, secondary treatment, tertiary treatment, and disinfection. 1.55 Strength means the measurement of Total Suspended Solids and Chemical Oxygen Demand within the Flow and any other measurement required by law after the date of this Agreement or necessary for the Functional Design Methodology. 1.56 Total Suspended Solids or TSS means the insoluble solid matter in wastewater that is separable by laboratory filtration, as determined by the procedures specified in the most current edition of “Standard Methods for the Examination of Water and Wastewater,” or any successor publication which establishes the industry standard. 1.57 Tertiary Component is that portion of the wastewater treatment process that currently filters the secondary treated wastewater effluent through fine sand and/or anthracite coal to remove fine suspended solids and disinfects it to meet the requirements of the California Administrative Code, Title 22, or its successor for filtered and disinfected wastewater used for recycled and repurified water. Page 137 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 9 - 6-12-26 4932-3639-7490 1.58 Two-Party Approval is an approval mechanism under this Agreement that requires the City’s Administrative Approval and a two-thirds (2/3) vote or greater of the Metro JPA Directors present at a duly noticed Metro JPA public meeting as described more particularly in Section 16. 1.59 Variable Costs shall refer to the portion of the Functional Design Methodology costs that are allocated based on Metered Flow and Strength. 1.60 Water Repurification System shall mean any facilities, including treatment and conveyance facilities, the purpose of which is the production or conveyance of Repurified Water. Water Repurification System includes, but is not limited to: the Tertiary Component of the North City Water Reclamation Plant to the extent being used to produce Repurified Water, the North City Pure Water Facility; the Repurified Water conveyance system, which will transport Repurified Water from the North City Pure Water Facility and/or other facilities to the Miramar Reservoir or other alternative location(s) as determined by the City; and any other Repurified Water treatment or conveyance facilities which are part of the Pure Water Program. These facilities are constructed and maintained at the expense of the City water utility and are excluded Metro System Costs under this Agreement. 2. OWNERSHIP AND OPERATION OF THE METRO SYSTEM 2.1 Rights of the Parties. The City is the owner of the Metro System, and any additions to the Metro System or other facilities constructed pursuant to this Agreement. As more particularly set forth in this Agreement, and subject to the terms and conditions of this Agreement, the rights of the Parties generally include the following: 2.1.1 All decisions with respect to the planning, design, construction, operation and maintenance of the Metro System shall rest with the City, in consultation with the Metro JPA. 2.1.2 The Participating Agencies shall have a contractual right to use the Metro System and to participate in its operation. 2.1.3 The City may transfer ownership of all or part of the Metro System at any time. In the event of a transfer, including a sale under Section 2.7, the City’s successor shall be bound by the terms of this Agreement, and the Participating Agencies rights under this Agreement shall not be affected by such a transfer. 2.1.4 Any Participating Agency may transfer or assign its rights and obligations under this Agreement. Any transfer shall first be approved by the City. No transfer may occur if the City reasonably determines, after consultation with the Participating Agencies involved, that the proposed transfer will imbalance or adversely impact the City’s ability to operate the Metro System. 2.2 Metro System Services. 2.2.1 The City shall provide wastewater conveyance, treatment and disposal services to the Participating Agencies through the Metro System, under the terms set forth in this Agreement. Page 138 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 10 - 6-12-26 4932-3639-7490 2.2.2 The City shall operate the Metro System in an efficient and economical manner, maintaining it in good repair and working order, all in accordance with recognized sound engineering and management practices. 2.2.3 The City shall convey, treat, and dispose of or reuse all wastewater received under this Agreement in such a manner as to comply with all applicable laws, rules and regulations. 2.3 Flow Commitment. 2.3.1 Subject to the provisions of this Agreement and absent a separate agreement of the Parties, all Flow within the capacity limits set forth in Exhibit B or any amendments or changes thereto shall remain in the Metro System. 2.3.2 This Agreement shall not preclude any Party from diverting Flow as a result of the construction of reclamation/reuse facilities or New Capacity outside of the Metro System. 2.3.3 Any Participating Agency may negotiate an agreement with the City to reduce all or part of their Contract Capacity. If a Participating Agency reduces its Contract Capacity to zero, that Participating Agency’s rights shall terminate under this Agreement and that Participating Agency shall no longer be considered a member of the Metro JPA. However, the agreement between the City and Participating Agency shall provide that the Participating Agency pays its proportionate share of Capital Improvement Costs for the remainder of the useful life of the facility(ies) constructed during the time the Participating Agency possessed Contract Capacity in the Metro System. This shall include, but is not limited to, any remaining portions of outstanding debt that was incurred for capital facilities during the time the Participating Agency had the right to send Flow into the Metro System, and the cost to disconnect the Participating Agency’s system from the Metro System. Any Contract Capacity that a Participating Agency chooses to relinquish under this section shall be treated as Pooled Capacity after the effective date of an agreement between the City and that Participating Agency. This section does not apply to Inter-Agency transfers of Contract Capacity, which involve the relinquished Contract Capacity being assigned to and assumed by another Participating Agency or the City. Inter-Agency transfers are governed by Section 3.2 2.3.4 Flow Projections. Currently, the Projected Future Strength and Flow Amounts are projected to the year 2050 in order to allow the Parties time to plan for future development and growth. However, these projections may be amended from time to time through the Exhibit B amendment processes in this Agreement to more fairly align with actual flow and strength data. The parties shall begin discussion to recalculate the Projected Future Strength and Flow Amounts set forth in Exhibit B by no later than January 1, 2040. 2.4 Funding Obligations. The City shall fund the acquisition, construction, maintenance and/or operation of the Metro System from monies in (or sewer revenues which populate) the Sewer Revenue Fund for the Metro System, and/or from construction funds derived from the sale of duly authorized sewer revenue bonds for the Metro System. Nothing in this Section or Agreement shall (i) obligate the City to make any payment for the acquisition, construction, maintenance or operation of the Metro System from monies derived from taxes or any other income or revenue of the City; (ii) be construed to obligate the City or any Participating Page 139 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 11 - 6-12-26 4932-3639-7490 Agency to pay from its annual income and revenues any sum which would create an indebtedness, obligation or liability within the meaning of the provisions of Section 18 of Article XVI of the Constitution of the State of California and, in the City’s case, San Diego Charter Section 99; or iii) prevent the City, in its discretion, from using tax revenues or any other available revenues or funds of the City for any purpose for which the City is empowered to expend moneys under this Agreement. For the avoidance of doubt, subsections (i) and (ii) shall not relieve the City from its obligations to fund the Metro System as provided in this Section 2.4. 2.5 Limitations on Types and Condition of Wastewater. 2.5.1 Each Participating Agency shall minimize to the maximum extent practicable, the infiltration and inflow of surface, ground or stormwaters into its respective wastewater systems. 2.5.2 Each Participating Agency will ensure that all Industrial Users of its wastewater system are regulated by and comply with the City’s industrial pretreatment program. City shall not require the Participating Agencies to take any actions against such Industrial Users beyond that which are (1) required under applicable laws, rules and regulations, (2) taken by the City, or (3) that can be taken, but are not being taken by the City. 2.5.3 City and the Participating Agencies agree that the Interjurisdictional Pretreatment Agreements executed by and between the City and each Participating Agency, as applicable, shall terminate effective upon the date of this Agreement. However, the separate transportation agreements that are currently in effect between or among the City and the Participating Agencies shall remain in effect in accordance with their terms. Each Participating Agency will not discharge wastewater originating outside its respective boundaries into the Metro System without the approval of the City, which shall not be unreasonably withheld. 2.5.4 Each Participating Agency shall be responsible for the violation of any applicable laws, rules or regulations associated with its respective discharge of wastewater into the Metro System. Nothing in this Agreement shall affect or prohibit the ability of any Participating Agency to hold third parties responsible for such violations. However, City shall be responsible for enforcement actions related to the violation of any applicable laws, rules, or regulations associated with industrial waste dischargers regulated by City, though each Participating Agency shall collaborate with City when necessary, on any enforcement response for pretreatment violations within a Participating Agency’s jurisdiction. However, the City shall not be responsible for enforcement or monitoring related to a Participating Agency’s compliance with its own NPDES Permit. 2.5.5 Food establishments and dischargers of fats, oils, and grease (FOG) are regulated and monitored by individual Participating Agencies within their jurisdiction. Participating Agencies are responsible for the provision of FOG programs, services, and enforcement within their jurisdiction. The City will not provide FOG-related services or programs outside of the City’s jurisdiction. 2.5.6 Residuals shall be separately conveyed so that the Residuals bypass all secondary wastewater treatment processes, unless otherwise agreed to in writing by the City and a Page 140 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 12 - 6-12-26 4932-3639-7490 Participating Agency or the City and a group of Participating Agencies. For the avoidance of doubt, the Agreement regarding Operation and Maintenance of the East County Residuals Line entered into by the City and the ECAWP JPA with an effective date of February 6, 2023 (specifically, Exhibit C to that agreement entitled Principles of Understanding for Operation and Residuals Management in Lieu of the East County Residuals Line), is an agreement that allows the Residuals from the ECAWP Project to convey Residuals in a manner that does not bypass all secondary wastewater treatment processes under certain conditions. 2.6 Enforcement Actions. In the event a regulatory agency, imposes any penalty or fine, or takes other enforcement action, or a private citizen brings a citizen enforcement action to enforce regulatory requirements, (collectively, “Enforcement Actions”) relating to the conveyance, treatment, or disposal of wastewater in or from the Metro System or operation of the Metro System, the City shall determine as part of its investigation and response to the notice of violation whether the City or a Participating Agency or Agencies caused or contributed to the violation for reasons which may include, without limitation, exceeding their Contract Capacity, the contents of their wastewater, or the failure to maintain or operate the Metro System or a Participating Agency’s system. Any costs associated with an Enforcement Action including but not limited to fines, penalties, corrective measures, and costs of defense (collectively, “Penalty(ies)”) shall be shared by the Participating Agencies and the City proportionately based on Fixed Capacity as set forth in the then current Exhibit B, unless the City determines, based on verifiable facts, that the violation for which the Penalty is imposed was caused by, or was the result of, gross negligence or willful misconduct of the City or a Participating Agency. 2.6.1 For any Enforcement Actions (1) related to sanitary sewer overflows of 10,000,000 gallons or more from the Metro System occurring after the effective date of this Agreement, or (2) that the City reasonably anticipates will result in the Participating Agencies’ collective responsibility for the Penalties imposed to exceed 10% of the Metro Participating Agencies combined annual operations and maintenance budget for the Metro System for the fiscal year in which the Penalty is imposed (“Threshold Amount”), the City’s determination will be subject to review by the Metro JPA as set forth in 2.6.1.1 through 2.6.1.8 below. The scope of the Metro JPA’s review shall be limited to whether the violation for which the Penalty is imposed was caused by, or was the result of, gross negligence or willful misconduct of the City or a Participating Agency, and if so, how the Penalty should be fairly allocated. For all other Enforcement Actions, the City’s determination related to the allocation of Penalty shall be final. 2.6.1.1 The City will provide a copy of any report submitted to a regulatory agency in response to an Enforcement Action to the Metro JPA within 30 days of submitting that report to the regulatory agency. In that same communication, the City will also provide a summary of the City’s findings regarding causation and preliminary determination regarding the allocation of any Penalties. If these determinations have not been made, the City will provide an anticipated date that the information will be provided. 2.6.1.2 If the Metro JPA disputes the City’s determination as to the allocation, as evidenced by a vote approved by two-thirds of the Metro JPA Directors present at a duly noticed meeting, it shall notify the City in writing of the same within 90 days of receiving the City’s preliminary allocation determination. Page 141 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 13 - 6-12-26 4932-3639-7490 2.6.1.3 The City and representatives of the Metro JPA shall meet and confer to discuss the matter and try to reach an agreement on the appropriate allocation. To facilitate resolution, the meet and confer process shall be treated as a settlement discussion under the California Evidence Code and shall be a confidential process. The meet and confer process shall focus on whether the violation for which the Penalties are being imposed is the result, in whole or in part, of the gross negligence or willful misconduct of the City or a Participating Agency, and if so, how the Penalties shall be allocated. 2.6.1.4 If through the meet and confer process, the City determines that the Participating Agencies’ collective responsibility for the Penalties imposed will be less than the Threshold Amount, then the City will inform the Metro JPA of this determination and allocate the Penalty as such, and no further action by the Metro JPA is required. 2.6.1.5 If through the meet and confer process, the City and representatives of the Metro JPA reach an agreement, and the Participating Agencies’ collective responsibility for the Penalties imposed will be equal to or greater than the Threshold Amount, then that agreement shall be subject to the Two-Party Approval process. The City and representatives of the Metro JPA shall have an opportunity to present the proposed agreement to the Metro JPA before a vote on the determination. 2.6.1.6 If the City and representatives of the Metro JPA are unable to reach an agreement and Participating Agencies’ collective responsibility for the Penalties imposed is equal to or exceeds the Threshold Amount, the City will make a final determination regarding allocation of the Penalty and present the determination to the Metro Commission. 2.6.1.7 In the event that Two Party Approval is required but is not achieved, each Participating Agency shall pay the portion of the Penalty allocated to them at the time that it is invoiced, however, such payment may be made under protest. The Parties shall engage in the dispute resolution procedures under this Agreement to resolve the issue, prior to any Party having the right to initiate litigation. 2.6.1.8 Penalties in excess of the Threshold Amount shall be separated out in the reconciliation billing and notated as a spill penalty with reference to the first day of the spill associated with the penalty. 2.7 Right of First Refusal. 2.7.1 The City shall not sell or agree to sell the Metro System without first offering it to the Participating Agencies. For the purposes of this section, “Participating Agencies” shall mean a Participating Agency, a group of Participating Agencies, or a third party representing one or more Participating Agencies. The term “sell” shall include any transfer or conveyance of the Metro System or of any individual treatment, collection, or reclamation facility or outfall within the Metro System. 2.7.2 The City and the Participating Agencies recognize that transfer of ownership of the Metro System is currently restricted by Sections 6.04 and 6.20 of the Installment Purchase Agreement between the City and the Public Facilities Financing Authority of the City, which inter alia restricts the transfer of ownership to the Metropolitan Wastewater Sewage District Page 142 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 14 - 6-12-26 4932-3639-7490 or other governmental agency whose primary purpose is to provide wastewater treatment. The City shall not seek to impose on bond holders a waiver of Section 6.04 or 6.20. Absent such a restriction, before the City sells or agrees to sell the Metro System, or any portion of it, the City shall offer to sell the Metro System to the Participating Agencies (the “Offer”) on the terms and at a price equal to that proposed for the sale of the Metro System to a third party. The City shall provide all Participating Agencies with written notice of the Offer per Section 13 . The Participating Agencies shall have ninety (90) days from the date of mailing of the Offer (the “Intent to Respond Period”) in which to notify the City of their intent to respond to the Offer. If a Participating Agency or Agencies notify the City of their intent to respond to the Offer, that Participating Agency or those Agencies shall have five months from the expiration of the Intent to Respond Period in which to accept or reject the Offer. The Offer shall contain the name of the proposed purchaser, the proposed sale price, the terms of payment, the required deposit, the time and place for the close of escrow, and any other material terms and conditions on which the sale is to be consummated. If no Participating Agency or Agencies notifies the City of its (or their) intent to respond to the Offer within the Intent to Respond Period, the City may move forward with the sale of the Metro System without further notice to the Participating Agency in accordance with Section 2.7.3 below. 2.7.3 If the Participating Agencies give timely notice of their intent to respond and timely notice of their acceptance of the Offer, then the City shall be obligated to sell and the Participating Agencies shall be obligated to purchase the Metro System or any individual treatment, collection or reclamation facility or outfall within the Metro System, as applicable, at the price and on the terms and conditions of the Offer. If the Participating Agencies do not give timely notice of their intent to respond or their acceptance of the Offer, or do not submit an offer on the same terms and conditions as the Offer, the City may, following the end of the Offer period, sell the Metro System, or any portion of it, at a price and on terms and conditions no less favorable to the City than those in the Offer. The City shall not sell the Metro System to any third party on terms or at a price less favorable to the City from the terms and price contained in the Offer absent compliance with the terms of this Section. The City’s sale of the Metro System under Section 2.7, is a transfer of ownership subject to Section 2.1.3. 2.7.4 Nothing herein shall prevent the City from entering into a financing agreement which may impose limits on the City’s power to sell the Metro System to the Participating Agencies pursuant to Section 2.7.1 if the City reasonably believes that such a financing agreement is in the City’s best interest. Neither the entry into such a financing agreement by the City nor the performance thereof by the City shall constitute a breach or default by the City hereunder. 2.8 Uniform Enforcement of Pretreatment Program by City. The Parties have determined that it is in their best interests for a single agency to be responsible for management of the pretreatment program for the Metro System in order to: (a) Ensure protection of the entire Metro System, including the successful operation of the Pure Water Program; (b) Provide consistent and uniform regulation of Industrial Users, including those subject to pretreatment requirements; (c) Provide for transparent and fair cost recovery from all dischargers; and d) Promote efficiency and accountability in the administration of the Metro System. For these reasons, the Parties are delegating pretreatment responsibilities to the City, except regulation of Food Establishments and FOG dischargers, as more fully set forth in this Agreement and in Administrative Agreement #1 Between City of San Diego and Participating Agencies for the Page 143 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 15 - 6-12-26 4932-3639-7490 Unified Management of Industrial Waste Discharge Pretreatment and Enhanced Source Control Programs (“Administrative Agreement #1”). Notwithstanding the above, the City may enter into supplementary agreements with an individual Participating Agency, or a group of Participating Agencies, relating to industrial waste discharge pretreatment and enhanced source control programs unique to such Participating Agency(ies), so long as the supplementary agreement incorporates a separate cost proportional to the participation of such Participating Agency or group of Participating Agencies that is the sole responsibility of such Participating Agency(ies). 2.8.1 Delegation of Authority. Each Participating Agency shall and hereby does delegate to City full authority and responsibility to operate, manage, and enforce an effective pretreatment program throughout the Metro System to ensure that all Industrial Users are subject to uniform rules and regulations, with direct billing to Industrial Users by the City to begin on the first July 1 following execution of this Agreement. 2.8.2 Operations and Maintenance. Procedures relating to the operation, management, enforcement, and cost recovery for the pretreatment program are set forth in Administrative Agreement #1. 2.8.3 Amending Pretreatment Program Procedures. Administrative Agreement #1 may be amended from time to time as set forth in Section 15. In the event of any conflict between this Agreement and Administrative Agreement #1, the terms of this Agreement shall control. 2.8.4 Adoption of Local Ordinances. By no later than June 30 following the Effective Date of this Agreement, every Participating Agency shall adopt a local ordinance conforming with the sample ordinance contained in Administrative Agreement #1 and the City’s pretreatment ordinance, each as amended from time to time, to ensure consistency throughout the Metro System. 2.8.5 Identification of New Industrial Users. Participating Agencies shall notify the City of any identified potential new Industrial Users within their respective boundaries while the City will bear responsibility for inventory assessments on a regular basis as set forth in Administrative Agreement #1. 2.8.6 Permitting and Permit Compliance. Nothing in this Agreement shall be construed to relieve any discharger to the Metro System of the responsibility to obtain and comply with any required permits for, and to comply with rules and regulations applicable to, dischargers to the Metro System. If the City determines that an Industrial Wastewater Control Program Permit is required, it shall issue the permit subject to the City’s permit requirements. The City’s approval or denial of any application for, or revocation of, an Industrial User Permit shall be in accordance with Chapter 6, Article 4 of the San Diego Municipal Code as well as any other applicable federal, state or local regulations, any published City guidance related to the Industrial Wastewater Control Program, and the City’s Enforcement Response Plan, all as may be amended, renumbered, or renamed from time to time. The City and any Participating Agency may elect to coordinate and combine issuing their wastewater discharge permits to Industrial Users when deemed appropriate by both parties. Any agreement between the City and the Participating Agencies related to permitting under the Industrial Wastewater Control Program, shall not transfer responsibility to City for any other type of permitting outside of the City’s jurisdiction, or subject any local agency Page 144 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 16 - 6-12-26 4932-3639-7490 as that term is defined in California Government Code section 53090, to local building and zoning ordinances that the local agency is not otherwise legally subject to. 2.8.7 Inventory of Industrial Users. City shall create and maintain an inventory of all Industrial User within the Metro System as soon as reasonably practicable following execution of this Agreement. The Participating Agencies shall review the inventory and shall notify the City of an Industrial User(s) in its jurisdiction that is not identified on the inventory as set forth in Administrative Agreement #1. 2.8.8 Evaluation, Monitoring, Enforcement and Program Review. Upon the effective date of this Agreement, it shall be the City’s right and obligation to carry out pretreatment evaluation, permitting, monitoring and/or enforcement throughout the Metro System consistent with the procedures set forth in Administrative Agreement #1. The City’s pretreatment program review shall occur as necessary, but no less than once every five (5) years. Nothing herein shall be construed as prohibiting any Participating Agency from enforcement of its own pretreatment ordinance within its jurisdiction. 2.8.9 City’s Direct Billing of Industrial Users. The City shall directly bill Industrial User throughout the Metro System to recover costs associated with the pretreatment program as set forth in Administrative Agreement #1. The City Council shall set and approve such costs in a publicly noticed meeting pursuant to the procedures set forth in Administrative Agreement #1. 2.9 Wastewater Generated at Military Bases. The City may contract directly with federal military bases that are connected to the Metro System for wastewater services and capacity subject to the terms of this Section 2.9. If a United States military base is located within a Participating Agency’s jurisdiction, the Participating Agency may request that the City bill that military base directly as a separate and distinct customer. In the event the City agrees to accept the military’s wastewater and bill the military base as a separate and distinct customer, then (1) the Participating Agency shall have no billing obligations with respect to the military base; (2) each Participating Agency whose sewage line conveys the military base’s wastewater reserves the right to negotiate and charge the federal government a conveyance or transportation fee for use of that Participating Agency’s sewer line; (3) the City shall require that the military base comply with the applicable City pretreatment rules; and (4) the City agrees that the wastewater generated by the military base shall not be considered wastewater of the Participating Agency with respect to capacity once the City enters into an agreement with the military base. Any transfers of capacity that are appropriate or necessary to accommodate flow from military bases, if needed, would be governed by Section 3.2 herein, “Inter-Agency Transfers of Contract Capacity.” 3. CAPACITY RIGHTS 3.1 Contract Capacity. Each Participating Agency shall have the contractual right to discharge wastewater to the Metro System up to the limits set forth in Exhibit B (“Contract Capacity”). Each Party’s Contract Capacity as stated in Exhibit B, is used for the purpose of allocating the Metro System’s Pure Water Program Capital Improvement Costs, Repurified Water Revenue, and the Capital Expense Rate under this Agreement. Page 145 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 17 - 6-12-26 4932-3639-7490 3.2 Inter-Agency Transfers of Contract Capacity. The Participating Agencies and the City may buy, transfer, sell or exchange all or part of their Contract Capacity among themselves on such terms as they may agree upon, subject to the following: 3.2.1 Any Party requesting to buy, transfer, sell, or exchange all or part of their Contract Capacity (“Inter-Agency Transfer”) shall provide a written proposal to the City including the proposed terms of such Inter-Agency Transfer. The Party requesting the Inter-Agency Transfer shall also provide notice to all other Participating Agencies under Section 13 concurrently with submitting the proposal to the City. 3.2.2 All Participating Agencies will have 45 days to provide any technical input to the City regarding the proposed Inter-Agency Transfer. Any Participating Agency providing technical input shall provide a copy of such input to all other Participating Agencies under Section 13 concurrently with submitting the input to the City. 3.2.3 Upon receipt of a request for an Inter-Agency Transfer, the City will review the request, consult with the affected Participating Agencies, and consider any technical input provided by other Participating Agencies. 3.2.4 All proposed purchases, transfers, sales or exchanges of Contract Capacity require the City’s Administrative Approval prior to becoming effective. No Contract Capacity may be transferred if the City determines that said transfer will imbalance, or will otherwise adversely impact the City’s ability to operate the Metro System. Provided, however, that the Participating Agency seeking the transfer may offer to cure such imbalance at its own expense. If the Participating Agency makes such an offer, the City may not unreasonably withhold Administrative Approval. 3.2.5 If the City approves the offer as proposed, the City shall adjust the Contract Capacity set forth in Exhibit B per Section 3.6 to reflect the approved changes. If the City determines, after taking the steps in Section 3.2.3 that an Inter-Agency Transfer may be approved if the request is modified, the City will provide a written notice to all Participating Agencies of the modified Inter-Agency Transfer under Section 13 no less than 30 days prior to the Inter-Agency Transfer becoming effective. Such modified Inter-Agency Transfer will become effective 30 days following the written notice being provided, and the City will prove an updated Exhibit B per Section 3.6 reflecting the approved changes. 3.2.6 If a Participating Agency reduces its Contract Capacity to zero through an Inter-Agency Transfer, that Participating Agency’s rights under this Agreement shall terminate and that Participating Agency shall no longer be a member of the Metro JPA. The Participating Agency shall remain responsible for all outstanding financial obligations under this Agreement, unless the Inter-Agency Transfer Agreement assigns those obligations to the Participating Agency accepting the transfer and that agency assumes those obligations. Outstanding financial obligations include, but are not limited to, a Participating Agency’s proportionate share of Capital Improvement Costs for the remainder of the useful life of the facility(ies) constructed during the time the Participating Agency possessed Contract Capacity in the Metro System, including any remaining portions of outstanding debt incurred for capital facilities during the time the Participating Agency had the Page 146 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 18 - 6-12-26 4932-3639-7490 right to send Flow into the Metro System, and the cost to disconnect the Participating Agency’s system from the Metro System. 3.3 New Contract Capacity. The Parties recognize that the Metro System may be modified to create capacity in the Metro System beyond that set forth in Exhibit B as a result of the construction of additional facilities, acquisition of facilities, increased flows, or as required by regulatory or similar such action. If capacity in excess of the Contract Capacity (“New Contract Capacity”) is required or requested by a Party, the Parties shall negotiate in good faith to provide the needed or requested capacity. If the Parties agree to provide New Contract Capacity, they shall memorialize the agreement for New Contract Capacity in an Administrative Agreement subject to the Joint Administrative Approval Process set forth in Section 15. If the parties execute an Administrative Agreement for New Contract Capacity, Exhibit B shall also be adjusted pursuant to Section 3.6 to reflect the New Contract Capacity. 3.4 Reductions in Metro System Capacity. The Parties further recognize that Metro System Capacity may be reduced to comply with, or in response to, applicable permit conditions, or related regulatory action, or sound engineering principles. In the event that the capacity of the Metro System is re-rated to levels below the numbers reflected in the Totals Line set forth in Exhibit B, then the Contract Capacity shall be reallocated proportionately among the Parties based on the percentages of fixed ownership set forth in Exhibit B at that point in time, subject to the City’s Administrative Approval and amendment of Exhibit B. 3.5 Restrictions on Veto of Transfers and Acquisitions of Capacity. Each Party understands and agrees that no Participating Agency has a right to veto or prevent the transfer of capacity between other Participating Agencies or the City, nor the creation or acquisition of new capacity for another Participating Agency or Agencies. By signing this Agreement, each Participating Agency is expressly preapproving such actions. The sole right of a Participating Agency to object to any of the foregoing shall be through expression of its opinion to the Metro JPA and, where applicable, through exercise of its rights under the dispute resolution provisions of this Agreement. 3.6 Amendments to Exhibits B. If the City determines that an amendment to Exhibit B is required for any reason other than a request from a Participating Agency under Sections 2.3.3 and Sections 3.2, and that reason only requires the City’s Administrative Approval, the City shall prepare and circulate to all Participating Agencies a notice explaining the facts and circumstances that the City’s determination is based on(including any relevant data available), and the proposed amendment to Exhibit B within 60 days of determining such an amendment is necessary. The Participating Agencies will have sixty (60) days to provide comments to the City, and all comments submitted to the City by a Participating Agency shall also concurrently be submitted to all other Participating Agencies. The City will review all comments received, prepare final amendments to Exhibit B to reflect adjustments in Contract Capacity, and circulate the final amended Exhibit B by no later than sixty (60) days after the City’s Administrative Approval. If the amendment to Exhibit B requires an approval process other than the City’s Administrative Approval, the Parties will follow the required approval process, and once that is completed, the City will prepare and provide the final version of Exhibit B within 60 days of the completion of the approval process. The City shall note each amendment and amendment date in the Exhibit List and shall keep an Page 147 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 19 - 6-12-26 4932-3639-7490 updated version of Exhibit B on file with the City Public Utilities Department at all times. An amendment to Exhibit B shall not be retroactive, except as provided in Section 4.4.3.3. 3.7 The South Bay Ocean Outfall. Nothing in this Agreement shall limit the City’s right to transfer capacity rights in assets that are not a part of the Metro System, including without limitation that portion of the South Bay Ocean Outfall which is not part of the Metro System. 4. FINANCE, BUDGETING, AND ACCOUNTING: PAYMENT AND MONITORING PROVISIONS 4.1 Payment for Metro System Facilities. Through the system of charges set forth in Section 5 of this Agreement, each Participating Agency shall pay its share of the costs of planning, design and construction of all of the Metro System facilities which are identified in Exhibit A . 4.2 Payment for Additional Metro System Facilities. Through the system of charges set forth in Section 5 of this Agreement, each Participating Agency shall pay its share of the costs of acquisition, planning, design and construction of such facilities, in addition to those set forth on Exhibit A, as are necessary to (a) convey, treat, dispose, and reuse wastewater in the Metro System; b) provide the Contract Capacity set forth in Exhibit B; and (c) maintain hydraulic capacity as otherwise required by sound engineering principles. Each Participating Agency shall pay its share of the costs necessary to ensure the Metro System maintains compliance with applicable laws, rules and regulations, including the Ocean Pollution Reduction Act of 1994 and its successor(s), as well as present and future waivers of applicable treatment standards at any Metro System treatment facility. Exhibit A may be amended to reflect replaced or rehabilitated facilities, or changes in facilities, subject to the City’s Administrative Approval; however, if the City proposes to add a new Metro facility to Exhibit A, or convert a City facility to a Metro facility that will be added to Exhibit A, then each such amendment shall be (1) subject to the City’s Administrative Approval, in its sole discretion, when the addition or conversion is for the purpose of complying with applicable laws, rules, or regulations; or (2) supported by an independent third-party study setting forth the benefits to the Metro System of each new facility, including a cost allocation for capital and projected annual maintenance costs if the addition or conversion is for any other purpose. For any new Metro facility or conversion of a City facility to a Metro facility proposed to be added or converted under (2) above, any such proposal must be memorialized in an Administrative Agreement subject to the Joint Administrative Approval Process set forth in Section 15. Once approved, the City shall amend Exhibit A accordingly and shall give notice of any amendments to all Participating Agencies. The City shall keep an updated version of Exhibit A on file with the City Public Utilities Department. Exhibit A may be amended to reflect other changes to the Metro System only as expressly provided in this Agreement. 4.3 Payment for Operation and Maintenance. Through the system of charges set forth in Section 5 of this Agreement, each Participating Agency shall pay its share of the Operation and Maintenance Costs of all Metro System facilities. The Participating Agencies shall not pay for the Operation and Maintenance Costs of the Water Repurification System, which are City Water Utility PW Costs. Page 148 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 20 - 6-12-26 4932-3639-7490 4.4 Charges Based on Flow, Strength and Fixed Capacity: Exception. 4.4.1 Except as otherwise described in this Section 4.4, a Participating Agency’s share of the charges in this Section 4 shall be based on its proportionate Flow, Strength, and Fixed Capacities as set forth in Exhibit B, as described more fully in Section 5. 4.4.2 Notwithstanding Section 4.4.1, or any other provision of this Agreement, a Participating Agency’s share of PWP Phase 1 Capital Improvement Costs, PWP Phase 1 Repurified Water Revenue, and Pure Water Program Capital Expense Rate attributable to the Metro System as described in Sections 6.6 and 6.7 shall be assessed or credited based on the Parties’ proportionate share of the Pure Water Capital Melded Percentages set forth in Column 7 of Exhibit B. The City shall annually allocate the estimated and actual PWP Phase 1 Capital Improvement Costs and revenues which are attributable to the Metro System in proportion to each Party’s Pure Water Capital Melded Percentages as set forth in Column 7 of Exhibit B when estimating quarterly payments and conducting year-end adjustments. 4.4.3 Each Party recognizes that operation within respective Projected Future Strength and Flow Amounts is essential to the accurate allocation of costs and revenues under the Pure Water Program. In recognition of same, the Parties agree as follows: 4.4.3.1 Contract Capacity Transfers – Increases in Fixed Capacity Components. Beginning in the next fiscal year after the effective date of this Agreement, if a Party exceeds their Capacity Rights or any individual component of the Capacity Rights set forth in Exhibit B, by any one of the following triggers based upon data available at the completion of a fiscal year: (1) Three percent (3%) in a fiscal year for any two consecutive fiscal years, (2) One MGD in a fiscal year for any two consecutive fiscal years, or (3) The equivalent Strength of one MGD in a fiscal year for any two consecutive fiscal years; then, the City shall prepare an amendment to Exhibit B that reflects a Contract Capacity Transfer for that Party based on the available information about such Party’s exceedance(s) and the methodology set forth in Exhibit E. After Phase 2 is completed, if, due to contract capacity transfers or reductions in capacity, the Pooled Capacity drops to less than two percent (2%) of the total Contract Capacity, a capacity study shall be initiated to evaluate existing facilities for new capacity. The City shall thereafter amend Exhibit B under the process set forth in Section 3.6 to reflect the new Contract Capacity for all Parties. Any changes to the methodology in Exhibit E shall be made pursuant to an Administrative Agreement subject to the Joint Administrative Approval Process described in Section 15. 4.4.3.2 Contract Capacity Transfers – Decreases in Fixed Capacity Components. Beginning in the next fiscal year after the effective date of this Agreement, if a Party can show through an independent report that its Monthly Average Daily Flow, annual average pounds per day of COD, annual average pounds per day of TSS, Incremental Peak Flow, or RSDP is projected to decrease ten percent (10%) or more below their Projected Future Strength and Flow Amounts using data from a minimum of three (3) consecutive prior fiscal years as support, then City shall prepare a proposed amendment to Exhibit B that reflects the new Projected Future Strength and Flow Amounts for all Parties based on such Party’s decrease and other relevant information using sound engineering principles and the guidelines set forth in Exhibit E. The City’s Page 149 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 21 - 6-12-26 4932-3639-7490 proposed amendment shall be subject to the Two-Party Approval Process. If approved, the City shall thereafter amend Exhibit B using the process set forth in Section 3.6. 4.4.3.3 If Exhibit B is amended to update one or more Parties’ Projected Future Strength and Flow Amounts pursuant to Section 4.4.3.1 or 4.4.3.2, the change in Projected Future Strength and Flow Amounts shall be effective retroactively to the beginning of that fiscal year, and the City shall use the updated amounts in estimating quarterly payments and conducting year-end adjustments for Pure Water Program costs and revenues. Therefore, any Party that underpaid based on prior Exhibit B Fixed Capacity amounts (which were based on prior Projected Future Strength and Flow Amounts) shall pay the retroactive amount due in quarterly installments in its quarterly payments the following fiscal year; any Party that overpaid based on previous Exhibit B Fixed Capacity amounts shall receive a credit in quarterly installments in its quarterly payments the following fiscal year. Notwithstanding the preceding sentence, if the retroactive amount due exceeds 20% of a Party’s average annual Metro System payments for the previous four (4) fiscal years, such Party may elect to pay the retroactive amount due in its quarterly payments over the subsequent four (4) fiscal years, with interest, based on the most recent quarterly earnings rate of the City’s Treasurer’s Pooled Rate of Return; any Party that overpaid in an amount that exceeds 20% of their annual average Metro System payments for the previous four (4) fiscal years based shall receive a credit in its quarterly payments spread over the following four (4) fiscal years. 4.5 Monitoring Flow and Strength. 4.5.1 The City shall monitor Flow and Strength. The City shall own and operate as part of the Metro System monitoring devices which will measure the amount of Flow discharged into the Metro System, unless otherwise agreed by the City and a Participating Agency. These devices shall be installed at locations appropriate to accurately monitor Flow and Strength. The City may also monitor Flow and Strength at other locations as it deems appropriate. For all currently unmetered areas, unit counts or agreed upon flow estimates where unit counts are not appropriate shall be used. For adding or subtracting unit count areas, the average current Metro Flow per unit shall be used consistently for all Parties. These unmetered unit counts will be updated at least once every five (5) years. If the flow in an unmetered area is over 0.5 MGD at a specific connection point, then a meter shall be added for that area, if possible. Exhibit F provides the Flow formulas that shall be used to determine the payment obligation for each Party, or a grouping or subgrouping of Parties, as applicable. Exhibit F shall be distributed to all Parties with the budget estimates that are sent annually pursuant to Section 5.7.1. The City currently provides all Participating Agencies with access to their data from the Flow metering devices, including providing access to their raw data, and will continue to do so according to the Parties’ established practices on the Effective Date of this Agreement. Changes to Exhibit F may be made upon the City’s Administrative Approval. 4.5.2 In measuring Strength, the frequency and nature of the monitoring shall not be more stringent for the Participating Agencies than it is for the City. The frequency, nature, and locations of Strength measurements, as well as the procedures used to determine Strength, shall be reviewed at least once every five (5) years and if changes are appropriate or required, the City may change the Strength measurements subject to the Two-Party Approval process. When conducting sampling within a Participating Agency’s service area, the City shall follow appropriate safety and Page 150 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 22 - 6-12-26 4932-3639-7490 security measures. The City and Participating Agencies will coordinate with the Participating Agency’s operations staff to ensure facilities are not negatively impacted by inspections. 4.5.3 The City shall report Strength data to the Participating Agencies at least quarterly. 4.5.4 The City shall notify the Metro JPA’s Executive Director and any directly affected Participating Agency within 24 hours of any unpermitted or unlawful discharge or release of effluent from the Metro System which may be reportable to the Regional Board, or any other regulatory agency, and which may result in civil or criminal penalties or administrative enforcement proceedings pursuant to Water Code sections 13261, et seq., section 13300, et seq., Government Code section 54740 et seq., or other provisions of law. Upon request from the Metro JPA or a Participating Agency, City shall provide the Metro JPA or affected Participating Agencies with copies of all non-privileged related correspondence to and from the Regional Board. The City shall endeavor to confer with Metro JPA staff during the report preparation process and before any report is submitted to a regulatory or enforcement agency. 5. FINANCE, BUDGETING, AND ACCOUNTING: SYSTEM OF CHARGES 5.1 Charges Authorized. The City agrees to implement, and the Parties agree to abide by a system of charges called Functional Allocated Billing (FAB). This system allows the City to equitably recover from all Participating Agencies their proportional share of the net Metro System Costs described in this section: 5.2 Functional Allocated Billing (FAB). The City shall annually determine the FAB rate based on the projected Metro System Costs (as defined below) for the forthcoming fiscal year, less all Metro System Revenues (as defined below). A detailed illustration of the FAB methodology using sample data is attached hereto as Exhibit J (the Sample FAB Calculation) to assist the Parties in understanding how the FAB methodology works. Exhibit J provides an illustration of the application of FAB to applicable parameters and the derivation of unit rates and resulting charges. The Parties agree that Exhibit J is intended to promote transparency and a common understanding of the implementation of FAB under this Agreement, but the Parties acknowledge that Exhibit J is illustrative only and shall not control over the terms of this Agreement or the actual calculation of annual FAB rates, which shall be determined in accordance with this Section 5. 5.2.1 Calculation of FAB Rates. 5.2.1.1 The City shall determine the unit FAB rates by allocating net costs Metro System Costs less Metro System Revenues) between the fixed and measured variable parameters of Capacity Rights, such as Monthly Average Daily Flow, Incremental Peak Flow, COD, TSS, and RSDP as set forth in Exhibit B. These allocations are based on the approved Functional-Design Methodology analyses for sewer system components and estimated Operation and Maintenance (O&M) Costs allocated to each parameter. 5.2.1.2 Beginning one (1) year after substantial completion of the final project of Phase 1 of the Pure Water Program for which sewer revenue funds were used, the City shall have the FAB, which includes the Functional Design Methodology, professionally reviewed at least once every five (5) years. Page 151 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 23 - 6-12-26 4932-3639-7490 5.2.1.3 After conducting a professionally developed independent third- party report, the City may propose to change the FAB, including the Functional Design Methodology, to include any other parameter, or modify any term governed by this Section 5.2.1, by way of an Administrative Agreement subject to the Joint Administrative Approval Process set forth in Section 15. However, the City may revise the FAB, including the Functional Design Methodology at any time to include any other measurement required by law after the effective date of this Agreement subject to the City’s Administrative Approval, in its sole discretion. City will notify all Participating Agencies of any such review or revision no later than sixty (60) days after City’s Administrative Approval. Once approved, the FAB resulting from any review or revision under this Section will become the current approved version until it is revised by a future professional independent third-party study or a change in law. 5.2.1.4 Each of the parameters will have a fixed and variable O&M charge between 0% and 100%. Fixed Capacity Charges will be based on the Contract Capacity in Exhibit B. Variable charges will be based on measured parameters such as Metered Flow, Strength and RSDP. 5.2.1.5 Costs for capital improvements, capital replacement, and rehabilitation costs including financing shall be based on the approved Functional-Design Methodology and the Contract Capacity in Exhibit B. 5.2.1.6 The net cost allocated to each of the parameters shall be divided by the total Metro System quantity for that parameter to determine the unit rates for each parameter. These unit rates shall apply uniformly to all Parties. 5.3 Metro System Costs. The following shall at a minimum be considered Metro System Costs for purposes of calculating the annual FAB rate: 5.3.1 Except as provided in Section 5.4 (Excluded Costs), the annual Operation and Maintenance Costs and annual costs associated with administration, replacement, annual debt service costs and other periodic financing costs and charges, capital improvement, insurance premiums, claims payments and claims administration costs of the Metro System, including projected overhead, shall be calculated using generally accepted accounting practices to reflect the costs of the Metro System. 5.3.2 Fines or penalties imposed on the City as a result of the operation of the Metro System, unless the fine/penalty is allocated to the City or a Participating Agency as provided in Section 2.5.5. 5.4 Excluded Costs. The following items shall not be considered Metro System Costs for purposes of calculating the annual FAB rate: 5.4.1 Costs related to the City of San Diego’s municipal sewer, water (including City Water Utility PWP Costs), and/or stormwater systems as determined by City’s reasonable calculations consistent with sound engineering and best management practices.; Page 152 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 24 - 6-12-26 4932-3639-7490 5.4.2 Right-of-way charges for the use of public streets of the City or any Participating Agency. The City and the Participating Agencies agree not to impose a right-of- way charge for the use of its public rights-of-way for Metro System purposes; 5.4.3 Capital Improvement Costs or Operations and Maintenance Costs of any non-Metro System facility not included in Exhibit A, including, but not limited to, any costs associated with the ECAWP Project; 5.4.4 Those costs otherwise identified as excluded costs in Section 6.3. 5.5 Metro System Revenues and Allocations. The following revenues shall be at a minimum considered Metro System Revenues for purposes of determining the annual FAB rate: 5.5.1 Any grant or loan receipts or any other receipts that are attributable to the Metro System or Metro System components of the Pure Water Program, including, but not limited to, all compensation or receipts from the sale, lease, or other conveyance or transfer of any asset of the Metro System or Metro System components of the Pure Water Program. Any such receipts attributable to the Metro System components of the Pure Water Program shall be allocated among the City and the Participating Agencies in the proportions set forth in Exhibit B Fixed Capacity amounts. 5.5.2 All compensation or receipts from the sale or other conveyance or transfer of any Metro System byproducts, including, but not limited to, gas, electrical energy, sludge products, and Recycled Water produced at the NCWRP and SBWRP and the future Central Area Plant. 5.5.3 Payments by the City’s Water Utility for the Capital Expense Rate, as calculated under provisions in Section 6.7. These proceeds shall be allocated among the City and Participating Agencies in the proportions set forth in Exhibit B Fixed Capacity amounts. 5.5.4 Those portions of Repurified Water Revenue attributable to the Metro System, as calculated under provisions in Section 6.6.3. These revenues shall be allocated among the City and Participating Agencies in the proportions set forth in Exhibit B Fixed Capacity amounts. 5.5.5 Any other non-operating revenues, including, but not limited to interest income included in the income credit portion of the annual audit. 5.6 Excluded Revenue. The following revenues shall be excluded from Metro System Revenues for purposes of determining the annual FAB rate: 5.6.1 Proceeds from the issuance of debt for Metro System projects. 5.7 Estimate and Billing Schedule and Year End Adjustment. 5.7.1 The City shall estimate the FAB rates on an annual basis prior to January 15 and provide budget estimates for the upcoming fiscal year to all Parties. The City shall quantify the FAB rates by estimating the quantity of Flow, Strength, and Fixed Capacity Charges for each Page 153 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 25 - 6-12-26 4932-3639-7490 Party, based on that Party’s Metered Flow for the past year and the cumulative data of sampling for Strength constituents such as COD and TSS over the preceding five years and Fixed Capacities set forth in Exhibit B. If the cumulative five-year Strength data is no longer indicative of discharge from a Party, and a Contract Capacity Transfer has been approved pursuant to Sections 4.4.3.1, 4.4.3.2, or 3.2, then the City may eliminate the previous higher readings subject to the City’s Administrative Approval. 5.7.2 Prior to March 1 of each year the City will provide a mid-year review of the current year’s Metro System Capital Improvement Costs and Operations and Maintenance Costs and offsetting non-operating revenues such as grant or loan proceeds, including fiscal year-end projections and provide such reviews to the Participating Agencies. 5.7.3 The City shall determine the volume of MBC Return on an annual basis and for billing purposes only. The costs of treating MBC Return shall be allocated to the Parties in proportion to their Metered Flow and Strength. If a Party’s Monthly Average Daily Flow plus MBC Return exceeds their Contract Capacity set forth in Exhibit B, it shall not be treated as an exceedance pursuant to Section 4.4.3.1. 5.7.4 The City shall bill the Participating Agencies quarterly, invoicing on August 1, November 1, February 1 and May 1. Each bill shall be paid within thirty (30) days of mailing. Quarterly payments will consist of the total estimated cost for each Participating Agency, based on their estimated Flow, Strength, and Fixed Capacity Charges, divided by four. 5.7.5 At the end of each fiscal year, the City shall determine the actual Metro System Costs and the actual Metered Flow as well as the cumulative Strength data for the City and each of the Participating Agencies. The City shall make any necessary adjustments to the unit rates for Flow and Strength such as COD, TSS and Fixed Capacity Charges based on actual costs for the year as determined through the annual audit process in Section 5.8.2 of this Agreement. The City shall then recalculate the FAB rate for the year using actual audited costs for the year, actual Metered Flow, Residuals, MBC Return, cumulative Strength factors, and Fixed Capacity Charges for the City and for each Participating Agency. The City shall credit any future charges or bill for any additional amounts due against the quarter after the prior year costs have been audited. 5.8 Financial Statements. 5.8.1 The City shall keep records and accounts of all costs and expenses relating to conveyance, treatment, disposal, and reuse of wastewater, and production of Repurified Water, and the acquisition, planning, design, construction, administration, monitoring, operation and maintenance of the Metro System and Water Repurification System, and any grants, loans, or other revenues received therefor. The City shall keep such records and accounts for at least four (4) years after the completed audit, or for any longer period required by law or outside funding sources. 5.8.2 Annual Audit. Said records and accounts shall be subject to reasonable inspection by any authorized representative of any Participating Agency at its expense. Further, said accounts and records shall be audited annually by an independent certified public accounting firm appointed by the City. A copy of said report shall be available to any Participating Agency. As part of said audit, the actual amount of City Water Utility’s PW Costs, Pure Water Program Page 154 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 26 - 6-12-26 4932-3639-7490 costs attributable to the Metro System, Repurified Water Revenue, and the Capital Expense Rate shall be determined and audited by the City’s external auditors and Participating Agency representatives, and a cumulative and annual summary of such amounts shall be included as a footnote or attached to the audit of the Metro System. Cost summaries shall include separate lines for Capital Improvement Costs and Operation and Maintenance Costs. 5.8.3 The City shall make a good faith effort to complete the annual audit, and any related adjustments under this Agreement as described in Section 5.8.2, by the end of the following fiscal year. 5.9 Debt Financing. The City retains the sole right to determine the timing and amount of debt financing required to provide Metro System Facilities. The annual debt service plus in- progress Capital Improvement Costs to maintain capacity in and of the Metro System shall be allocated to the Participating Agencies consistent with the Exhibit B Contract Capacity allocations effective on the date the debt is issued. If a Participating Agency wishes to prepay Capital Improvement Costs, and the City is able to accommodate such a request, then a Participating Agency may prepay their proportional share of Capital Improvement Projects. If a Participating Agency wishes to withdraw or reduce their Flows and/or Strengths from the Metro System per Section 2.3.3 of this Agreement, such agency will remain responsible for its pro-rata share of all outstanding debt incurred at the time the debt was issued until it is satisfied, irrespective of withdrawal, reduction in Flows and/or Strengths, or Agreement expiration. If the City refunds debt, it shall allocate such refunds consistent with the Exhibit B Contract Capacity allocations effective on the date the debt was issued. 5.10 Allocation of Operating Reserves and Debt Service Coverage. The Parties shall continue to comply with the protocol set forth in Exhibit C, Administrative Protocol on Allocation of Operating Reserves and Debt Service Coverage to Participating Agencies, which exhibit may be amended from time to time consistent with Section 5.11. 5.11 Amending the System of Charges. Except as otherwise provided in Section 5.2.1.3, the Parties may amend any provision in this Section 5 regarding the Finance, Budgeting, and Accounting System of Charges in an Administrative Agreement subject to the Joint Administrative Approval Process set forth in Section 15. 6. FINANCE, BUDGETING, AND ACCOUNTING: PURE WATER PROGRAM COST ALLOCATION AND REVENUES – PHASE 1 6.1 North City Water Reclamation Plant Modification. As part of Phase 1 of the Pure Water Program, the City intends to modify the North City Water Reclamation Plant (a Metro System facility) and expand its capacity to 52 MGD. In addition, the City intends to construct the North City Pure Water Facility on a nearby site to produce Repurified Water. This Section sets forth the costs and revenues associated with the Pure Water Program attributable to the Metro System. Exhibit A includes current constructed Metro System facilities and existing and proposed future Phase 1 facilities. 6.2 New, Expanded or Modified Metro System Facilities. Each new, expanded, or modified Metro System facility, which is part of the Pure Water Program, and is used in relation Page 155 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 27 - 6-12-26 4932-3639-7490 to the production of Repurified Water (in addition to the modification and expansion of the North City Water Reclamation Plant) shall be governed by this Section. 6.3 Costs Excluded from Metro System Costs – Phase 1. All of the following Pure Water Program costs, including Capital Improvement Costs, Operation and Maintenance Costs, and other related costs (including administration, insurance, claims, and overhead) shall be excluded from Metro System Costs for purposes of calculating the annual FAB rate. 6.3.1 General Exclusions: 6.3.1.1 Costs of the Water Repurification System and any Metro System facilities to the extent constructed, modified, expanded, or used for the purpose of treating wastewater beyond secondary treatment (ocean discharge standard under current law). This shall include costs for preliminary treatment, primary treatment, and secondary treatment to the extent such costs are higher than they would otherwise be due to the production of Repurified Water. 6.3.1.2 Costs for fail-safe disposal, if necessary, for design capacity for Repurified Water, including, but not limited to, any costs associated with the reservation of capacity at the Point Loma Wastewater Treatment Plant. 6.3.1.3 Costs for the demolition or replacement of existing Metro System facilities with similar facilities for the purpose of making space available for Water Repurification System facilities. Such costs may consider the current asset value or market value of the existing Metro System facility. 6.3.2 Cost Exclusions Specific to North City Water Reclamation Plant Improvements: 6.3.2.1 Costs for increased aeration tank volume to the extent the new volume exceeds the amount necessary to provide 52 MGD capacity. Determination of sizing to provide 52 MGD capacity shall be based on the current tank volume necessary to provide 30 MGD capacity. 6.3.2.2 Costs for the methanol feed system. 6.3.2.3 Costs for RSDP disposal, including, but not limited to, pump stations, pipelines, retreatment, ocean outfall, and monitoring. 6.3.2.4 Costs for the use of existing tertiary water filters for Repurified Water purposes. Such costs may consider the depreciated value of such filters or use such other appropriate valuation methods as agreed by the City and authorized representatives of the Metro JPA. Costs under this section shall be reimbursed or credited by City’s Water Utility to the Metro System. 6.4 North City Water Reclamation Plant Improvement Costs Included as Metro System Costs. Notwithstanding the above exclusions, the City and the Participating Agencies have specifically agreed that the following Capital Improvement Costs and Operation and Maintenance Costs related to North City Water Reclamation Plant improvements shall be included as Metro Page 156 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 28 - 6-12-26 4932-3639-7490 System Costs for purposes of calculating the annual FAB rate (and therefore not qualify as City Water Utility PW Costs): 6.4.1 Costs for chemically enhanced primary treatment for up to 52 MGD capacity. 6.4.2 Costs for primary effluent equalization for up to 52 MGD capacity. 6.4.3 Costs for increased volume of aeration tanks that will provide up to, but not exceeding, 52 MGD capacity. 6.4.4 Costs to add secondary clarifier tanks sufficient for up to 52 MGD capacity. 6.4.5 Costs for wastewater conveyance facilities to provide wastewater for replacement of Centrate flows that cannot be treated at the North City Water Reclamation Plant due to the production of Repurified Water. 6.4.6 Costs for treatment and conveyance of all MBC Return (micro-filtration and tertiary backwash) based on Flow, COD, and TSS. 6.5 Reallocation of PWP Costs incurred since FY 2014. 6.5.1 The allocation of Pure Water Program costs, retroactive to June 30, 2014, will be calculated the year the Agreement goes into effect, will be completed no less than two fiscal years following the production of 30 MGD by Phase 1 of the Pure Water Program. 6.5.1.1 All the O&M task orders, or costs that cannot be directly assigned to a PWP Phase 1 capital improvement project such as program management, environmental documents, etc., will be reallocated by the final water/wastewater cost split, and will include interest accruing since June 2014 at the interest rate earned by the City of San Diego for each applicable fiscal year as shown by the sample interest calculation included in Exhibit G, Sample of Interest Calculation. This postpones the reconciliation of costs until the substantial completion of all construction projects for Phase 1 (City Water Utility PW Costs and Metro). This reconciliation will be performed during the audit of the fiscal year in which substantial completion of all projects occurs. 6.5.1.2 All Phase 1 PWP CIP projects were bid and awarded by October 2022 which is FY2023. All shared Phase 1 CIP projects will be reallocated to the actual construction cost split once the project is awarded, and the cost loaded CPM is completed and negotiated between the City and the Participating Agencies during the FY2023 audit. All CIP soft costs incurred since 2014 will be reallocated like the O&M task orders during the audit of the year of substantial completion of the actual Phase 1 CIP projects. If interest is owed to the Metro System for soft costs starting in FY 2014, such interest shall be considered Metro System Revenues consistent with Section 5.5.5. Page 157 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 29 - 6-12-26 4932-3639-7490 6.6 Revenue Sharing for Repurified Water. 6.6.1 Background. Initially, the Parties anticipate that the cost per acre foot associated with the production of Repurified Water will be more expensive than the cost per acre foot of untreated imported water. However, it is anticipated that Repurified Water produced under Phase 1 will be less expensive than untreated imported water sometime in the future. Once Repurified Water produced under Phase 1 becomes less expensive than the cost of untreated imported water, the Parties agree that there will be revenue from the Pure Water Program. 6.6.2 Calculation. Revenue sharing shall occur in each fiscal year during which the annual cost per acre foot associated with the production of Repurified Water is less than the cost of untreated water per acre foot from the San Diego County Water Authority (“CWA”). The annual cost difference shall be known as “Repurified Water Revenue.” Repurified Water Revenue shall be determined as follows: Annual cost per acre foot of CWA untreated water purchased by the City for delivery at Miramar Reservoir (which shall be determined based on the total costs for water actually billed to the City by CWA for water delivered at Miramar Reservoir in a fiscal year, divided by the number of acre-feet of CWA water delivered at Miramar Reservoir that year) less Annual cost per acre-foot of City Water Utility PW Costs (which shall be determined based on total annual City Water Utility PW Costs divided by the number of acre-feet of Repurified Water actually produced in that year) the result of which is multiplied by The number of acre feet of Repurified Water produced by Pure Water Program facilities during the applicable fiscal year. Exhibit H, Summary of Billings from County Water Authority Showing Costs for Untreated Water, is a summary of the most recent CWA rate structure and cost allocations to the City of San Diego for untreated water. The Parties agree that Exhibit H shall be referred to by the Parties in the future in determining how costs for water delivered at Miramar Reservoir are calculated. If no untreated water is delivered at Miramar Reservoir in a given year, then the closest point of delivery of untreated water to the City shall be used. The City shall annually update Exhibit H to reflect the most recent CWA rate structure and cost allocations to the City of San Diego. The City shall estimate whether there will be Repurified Water Revenue in the upcoming fiscal year prior to January 15 of each year, and these amounts shall be incorporated into the budget estimates for the upcoming fiscal year to all Parties. 6.6.3 Revenue Sharing. Repurified Water Revenue shall initially be shared between the City’s Water Utility and the Metro System based on the relative actual Capital Improvement Costs for the Pure Water Program contributed by City’s Water Utility and the Metro Page 158 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 30 - 6-12-26 4932-3639-7490 System. Such Capital Improvement Cost contributions are currently estimated as 62% City’s Water Utility and 38% Metro System. The Metro System’s portion of the Repurified Water Revenue shall be applied to debt attributable to the Metro System first, until the debt attributable to the Metro System is fully paid. Following full payment of debt attributable to the Metro System, Repurified Water Revenue shall be shared based on the relative actual Operation and Maintenance Costs for Pure Water Program facilities contributed by City’s Water Utility and the Metro System, calculated annually. Such Operation and Maintenance Costs are currently estimated as 76% City’s Water Utility and 24% Metro System on an annual basis. In all instances referred to in this Section 6.6.3, the Metro System portion of the Repurified Water Revenue shall be allocated among the City and the Participating Agencies consistent with Section 4.4.2. 6.6.4 Year-End Adjustment. At the end of each fiscal year during which there is Repurified Water Revenue, the City shall determine the actual cost per acre foot of CWA untreated water purchased by the City, the actual cost per acre foot of City Water Utility PW Costs, and the actual amount of Repurified Water produced at Pure Water Program facilities. Based on the actual cost and production information, the City will recalculate the Repurified Water Revenue for the prior fiscal year. The City will credit any future charges or bill for any additional amounts due the quarter after the prior year costs have been audited. 6.6.5 Change in Potable Reuse Method. The Parties acknowledge that the Pure Water Program Phase 1 will initially use indirect potable reuse surface water augmentation. The use of CWA untreated water costs in calculating Repurified Water Revenue is intended to provide an appropriate point of comparison to costs for producing Repurified Water that will be introduced into surface water. The Parties agree that if the City desires to implement direct potable reuse (in which Repurified Water would be introduced directly into a water supply pipeline or facility), the Parties shall meet and negotiate in good faith regarding an amendment to this Section 6.6, to appropriately update the formula for Repurified Water Revenue, which form of amendment shall occur via an Administrative Agreement and shall be subject to the Joint Administrative Approval Process set forth in Section 15. 6.7 Capital Expense Rate. 6.7.1 Background. The Point Loma Wastewater Treatment Plant operates under a National Pollutant Discharge Elimination System (“NPDES”) permit modified under section 301(h) & (j)(5) of the Clean Water Act. If such modified permit were ever revoked or not renewed, the Parties agree that, under current law, the City would have an obligation to upgrade the PLWTP to secondary treatment. The Parties further agree that $1.8 billion is a fair and comprehensive estimation of the costs that could be incurred by the Metro System to meet the legal requirements related to the Metro System under current law. The estimate of $1.8 billion is based on the net present value of the capital cost to develop 180 MGD of secondary treatment at PLWTP as of November 15, 2018. Page 159 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 31 - 6-12-26 4932-3639-7490 Therefore, the Parties agree that $1.8 billion represents the maximum amount of Capital Improvement Costs that the Metro System should be obligated to contribute to the Pure Water Program, the purpose of which is not solely the disposal of wastewater, but also the production of Repurified Water. The Parties agree that this $1.8 billion maximum contribution should apply whether or not the PLWTP is actually upgraded to secondary treatment to meet legal requirements in the future because, as of the date of the Agreement, the Parties have the option of upgrading the PLWTP to full secondary treatment for the cost of approximately $1.8 billion. In light of the above, the Parties have agreed that if Metro System costs related to the Pure Water Program exceed the $1.8 billion, City’s Water Utility will pay a charge for each acre foot of secondary treated effluent produced by Metro System facilities and used for the production of Repurified Water. 6.7.2 Capital Expense Rate. Under the circumstances described in this Section 6.7, City’s Water Utility shall pay a charge (“Capital Expense Rate”) for each acre-foot of secondary treated effluent produced by Metro System facilities and used for the production of Repurified Water. The Capital Expense Rate costs or revenues attributable to the Metro System shall be assessed or credited consistent with Section 4.4.2. City’s Water Utility shall pay the Capital Expense Rate if the following costs alone, or in combination, exceed $1.8 billion (which amount shall be adjusted for inflation): 6.7.2.1 The sum of all Capital Improvement Costs and associated debt attributable to the Metro System components of the Pure Water Program under this Section 6.7.2; and/or 6.7.2.2 The sum of all Capital Improvement Costs and associated debt for the full or partial upgrading of the PLWTP to secondary treatment. Notwithstanding the above, the Capital Expense Rate shall not apply if the PLWTP is actually upgraded to secondary treatment (or beyond) due to: (a) a change in federal or state statutory law making it necessary to upgrade the PLWTP to comply with such new discharge standard; or (b) a final decision by a state or federal court or a federal administrative agency of competent jurisdiction that an NPDES permit modified under section 301(h) & G)(5) of the Clean Water Act is thereby revoked or denied renewal due to a finding that the discharge from the PLWTP violates anti-degradation rules or regulations promulgated under section 403 of the Clean Water Act. Page 160 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 32 - 6-12-26 4932-3639-7490 6.7.3 Calculation of Capital Expense Rate. The amount per acre-foot of the Capital Expense Rate shall be determined as follows: The sum of all Capital Improvement Costs and associated debt attributable to (i) the Metro System components of the Pure Water Program under this Section 6 and (ii) upgrading of the PLWTP to secondary treatment (if any) less 1.8 billion, as adjusted for inflation each July 1 (starting on July 1, 2019) to reflect the annual percentage change in the Engineering News Records – Los Angeles construction cost index the result of which is multiplied by 1.42 (which estimates the total interest on a 30-year State Revolving Fund loan with an interest rate of 2.5%) the result of which is divided by The total number of acre feet per year of secondary treated effluent that is expected to be produced by Metro System facilities for the production of Repurified Water over a period of thirty (30) years. The City shall estimate whether the Capital Expense Rate shall apply to the upcoming fiscal year (and its amount) prior to January 15 of each year, and the estimated amount of the Capital Expense Rate shall be effective on July 1 of the upcoming fiscal year. For purposes of this Section 6.7.3, Capital Improvement Costs and associated debt shall include such costs and revenue incurred by the Metro System prior to the effective date of the Agreement. 6.7.4 Year-End Adjustment. At the end of each fiscal year during which the Capital Expense Rate applies, the City shall determine the actual Capital Improvement Costs and associated debt attributable to the Metro System components of the Pure Water Program under this Section 6 and any upgrading of the PLWTP to secondary treatment, and the actual amount of secondary treated effluent produced by Metro System facilities and used for the production of Repurified Water. Based on the actual cost, interest, and effluent information, the City will recalculate the Capital Expense Rate for the prior fiscal year. The City will credit any future charges or bill for any additional amounts due the quarter after the prior year costs have been audited. 6.7.5 Duration; Expiration. The Capital Expense Rate shall continue until the cost difference between (a) the actual sum of Pure Water Program Capital Improvement Costs and associated debt attributable to the Metro System under Section 6.7 and/or the costs to upgrade the PLWTP and (b) $1.8 billion (as adjusted for inflation), has been fully paid, or the Agreement expires, whichever is sooner. Notwithstanding, it is the express intent and desire of the City and the Participating Agencies that if the Agreement expires before the cost difference has been paid Page 161 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 33 - 6-12-26 4932-3639-7490 through the Capital Expense Rate, that the Capital Expense Rate continue in any extension of this Agreement negotiated by the Parties pursuant to Section 14.2 until the cost difference has been fully paid. 6.8 Amending Pure Water Program Cost Allocation and Revenues – Phase 1. Except as otherwise provided in Section 6.6.2, the Parties may amend any provision in this Section 6 regarding the Finance, Budgeting, and Accounting for the Pure Water Program Cost Allocation and Revenues for Phase 1 in an Administrative Agreement subject to the Joint Administrative Approval Process set forth in Section 15. 7. FINANCE, BUDGETING, AND ACCOUNTING: PURE WATER PROGRAM COST ALLOCATION AND REVENUES – PHASE 2 7.1 Pure Water Program – Phase 2. The Second Phase of the Pure Water Program Phase 2”) shall create up to an additional 53 MGD of Repurified Water at Phase 2 facilities. The Parties agree to incorporate all terms relating to Phase 2 into this Agreement through an Administrative Agreement subject to the Joint Administrative Approval Process set forth in Section 15, subject to the requirements set forth in this Section 7 below. 7.2 Costs Excluded As Metro System Costs. Costs Excluded from Metro System Costs for Phase 2 shall be identified in an Administrative Agreement subject to the Joint Administrative Approval Process and approvals set forth in Section 15. However, the Administrative Agreement must reflect that all of the following PWP Phase 2 costs, including Capital Improvement Costs, Operation and Maintenance Costs, and other related costs (including administration, insurance, claims, and overhead) shall be excluded from Metro System Costs for the purposes of calculating the annual Phase 2 FAB rate, and shall be City Water Utility PW Costs: 7.2.1 Costs of the Phase 2 Water Repurification System and any Metro System facilities to the extent constructed, modified, expanded, or used for the purpose of treating water beyond secondary treatment (ocean discharge standard under current law). This shall include costs for preliminary treatment, primary treatment, and secondary treatment to the extent such costs are higher than they would otherwise be due to the production of Phase 2 Repurified Water. 7.2.2 Costs for fail-safe disposal, if necessary, for design capacity for Phase 2 Repurified Water, including, but not limited to, any costs associated with the reservation of capacity at the Point Loma Wastewater Treatment Plant. 7.2.3 Costs for the demolition or replacement of existing Metro System facilities with similar facilities for the purpose of making space available for Phase 2 Water Repurification System facilities. Such costs may take into account the current asset value or market value of the existing Metro System facility. 7.2.4 Costs for the Phase 2 methanol feed system. 7.2.5 Costs for Phase 2 RSDP disposal including, but not limited to, pump stations, pipelines, retreatment, ocean outfall, and monitoring. Page 162 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 34 - 6-12-26 4932-3639-7490 7.2.6 50% of the costs for the MBR Tanks and system for Phase 2. 7.2.7 All membrane integrity monitoring systems for Phase 2. 7.2.8 All Phase 2 systems downstream of MBR’s. 7.3 Revenue Sharing for Repurified Water – Phase 2. Terms regarding revenue sharing for Repurified Water for Phase 2 shall be identified in an Administrative Agreement subject to the Joint Administrative Approval Process set forth in Section 15. However, this Administrative Agreement must reflect terms related to Phase 2 revenue sharing for Repurified Water that conceptually mimic those terms set forth in Section 6.6. The Metro System portion of the Repurified Water Revenue for Phase 2 shall be allocated among the City and the Participating Agencies consistent with Section 4.4.2, as may be amended or updated to account for changes in PWP Phase 2. 7.4 Capital Expense Rate – Phase 2. Terms regarding the Capital Expense Rate for Phase 2 shall be identified in an Administrative Agreement subject to the Joint Administrative Approval Process and approvals set forth in Section 15. However, this Administrative Agreement must reflect terms that conceptually mimic the terms in Section 6.7, reflecting a continuation of the Capital Expense Rate through Phase 2 up until the PWP achieves up to 83 MGD of Repurified Water, taking into account production of water suitable for potable reuse occurring at all treatment processes for wastewater upstream from and at the PLWTP. The Pure Water Program Capital Expense Rate costs or revenues attributable to the Metro System shall be assessed or credited consistently with Section 4.4.2, as may be amended or updated to account for changes in PWP Phase 2. 8. FUTURE NEGOTIATIONS AND COOPERATION This Agreement specifically contemplates Phase 1 and Phase 2 of the Pure Water Program, which consists of new, expanded, or modified Metro System and Water Repurification System facilities projected to produce up to 83 million gallons per day of Repurified Water. The Parties intend to meet and negotiate in good faith regarding the referenced Administrative Agreements identified in this Agreement. All items outside the scope of the Joint Administrative Approval Process shall be negotiated by the Parties through the amendment processes described in Section 16.3, if necessary. 9. THE METRO COMMISSION 9.1 Establishment and Membership. The 1998 Agreement created and established and the ARA reestablished) the Metro Commission as a commission consisting of one representative from each Participating Agency. On October 25, 2000, the Participating Agencies entered into a Joint Exercise of Power Agreement which created a separate public entity, the Metro Wastewater Joint Powers Authority (“Metro JPA”), for the purpose, among others, of taking responsibility, actions, and making decisions pertaining to the 1998 Agreement on behalf of the Participating Agencies. The Metro Commission and the Metro JPA are and shall hereinafter be treated as one and the same entity for all intents and purposes under this Agreement, including for the purpose of accepting and executing the responsibilities delegated to the Metro JPA in this Agreement. Each Participating Agency shall have the right to appoint a representative of its choice Page 163 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 35 - 6-12-26 4932-3639-7490 to the Metro Commission/Metro JPA, and the Participating Agency’s appointee to the Metro Commission shall also serve as that Participating Agency’s representative on the Metro JPA Board of Directors. If a Participating Agency is a dependent district whose governing body is that of another independent public agency, that Participating Agency shall be represented on the Metro Commission/Metro JPA by a representative appointed by the governing body which shall have no more than one representative no matter how many Participating Agencies it governs. Each member has one vote in any matter considered by the Metro Commission/Metro JPA. The Metro Commission/Metro JPA shall establish its own meeting schedule and rules of conduct. The City may participate in the Metro Commission on an ex officio, non-voting basis. To the extent this Agreement expands or amends the powers or purposes set forth in the Metro JPA Joint Exercise of Powers Agreement, the Participating Agencies expressly agree to such expansion or amendment consistent with the terms of this Agreement. 9.2 Advisory Responsibilities of Metro JPA. 9.2.1 The Metro JPA shall act as an advisory body to the Mayor and City Council on policy issues and matters affecting and relating to the Metro System and shall be included in the City’s list of boards and commissions on the City’s website. The City shall present the position of the majority of the Metro JPA to the City’s governing body in written staff reports. The Metro JPA may prepare and submit materials in advance and may appear at any City hearings on Metro System matters and present its position to the governing body of the City. 9.2.2 The Metro JPA may advise the City of its position on any issue relevant to the Metro System. 9.3 Delegation of Decision-Making Authority of the Metro JPA. The Participating Agencies hereby delegate to the Metro JPA the authority to take certain actions pursuant to the approval processes provided in this Agreement, as permitted by law, including but not limited to Government Code 6506. The Participating Agencies agree that the Metro JPA has delegated authority to approve Administrative Agreements on behalf of each Participating Agency pursuant to the process set forth in Section 15. The Participating Agencies agree and acknowledge that the Metro JPA has authority to bind each Participating Agency to Administrative Agreements through the Joint Administrative Approval Process. All Participating Agencies agree to promptly execute Administrative Agreements after approval by the Metro JPA. By signing this Agreement, each Participating Agency is expressly preapproving such actions. 9.4 Standing. If a dispute arises among the Parties relating to or arising from a Party’s obligation under this Agreement or an associated Administrative Agreement, the Metro JPA shall have standing to enforce the terms of this Agreement against the City on behalf of two or more Participating Agencies if a majority of the Metro JPA votes to take action relating to this Agreement on behalf of two or more Participating Agencies. 10. DISPUTE RESOLUTION This Section governs all disputes arising out of this Agreement and any associated Administrative Agreements. Page 164 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 36 - 6-12-26 4932-3639-7490 10.1 Mandatory Non-Binding Mediation. If a dispute arises among the Parties relating to or arising from a Party’s obligations under this Agreement or an associated Administrative Agreement that cannot be resolved through informal discussions and meetings, the Parties involved in the dispute shall first endeavor to settle the dispute in an amicable manner, using mandatory non-binding mediation under the rules of JAMS, AAA, or any other neutral organization agreed upon by the Parties before having recourse in a court of law. Mediation shall be commenced by sending a Notice of Demand for Mediation to the other Party or Parties to the dispute. A copy of the notice shall be sent to the City, all other Participating Agencies, and the Metro JPA. 10.2 Selection of Mediator. A single mediator that is acceptable to the Parties involved in the dispute shall be used to mediate. The mediator will be knowledgeable in the subject matter of this Agreement, if possible, and chosen from lists furnished by JAMS, AAA, or any other agreed upon mediator. 10.3 Mediation Expenses. The expenses of witnesses for either side shall be paid by the Party producing such witnesses. All mediation costs, including required travel and other expenses of the mediator, and the cost of any expert advice produced at the direct request of the mediator, shall be Metro System costs. 10.4 Conduct of Mediation. Mediation hearings will be conducted in an informal manner. Discovery shall not be allowed. The discussions, statements, writings and admissions and any offers to compromise during the proceedings will be confidential to the proceedings (pursuant to California Evidence Code sections 1115 - 1128 and 1152) and will not be used for any other purpose unless otherwise agreed by the Parties in writing. The Parties may agree to exchange any information they deem necessary. The Parties involved in the dispute shall have representatives attend the mediation who are authorized to settle the dispute, though a recommendation of settlement may be subject to the approval of each agency’s boards or legislative bodies. Either Party may have attorneys, witnesses or experts present. 10.5 Mediation Results. Any resultant agreements from mediation shall be documented in writing. The results of the mediation shall not be final or binding unless otherwise agreed to in writing by the Parties. Mediators shall not be subject to any subpoena or liability and their actions shall not be subject to discovery. 10.6 Performance Required During Dispute. Nothing in this Section shall relieve the City and the Participating Agencies from performing their obligations under this Agreement. The City and the Participating Agencies shall be required to comply with this Agreement, including the performance of all disputed activity and disputed payments, pending the resolution of any dispute under this Agreement. 11. INSURANCE 11.1 City Shall Maintain All Required Insurance. 11.1.1 Throughout the term of this Agreement the City shall procure and maintain in effect liability insurance covering Metro System assets and operations in the same manner, and to the same extent, as the City insures similar assets and operations of the City. Such insurance Page 165 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 37 - 6-12-26 4932-3639-7490 may be provided through separate policies for the Metro System, or by consolidating the Metro System with other City assets and operations for insurance purposes. If the Metro System is insured separately, policy limits, deductibles, and self-insured retentions shall be equivalent to what the City procures for other similar City assets and operations. The City shall maintain all insurance required by law, including workers’ compensation insurance, and may self-insure for certain losses when allowed by law. The proportionate cost of insurance for the Metro System shall be included in the computation of the FAB. 11.1.2 If the Metro System is insured separately, any policy or policies of liability insurance carried by the City for the Metro System shall name the Participating Agencies as additional insureds with evidence of same supplied to each upon request. 11.1.3 Upon request by the Metro JPA or a Participating Agency, the City shall promptly provide written coverage and policy information, including, but not limited to, the scope of coverage, policy limits, deductibles, and self-insured retentions, including information on any claims made against the policies and remaining limits and deductibles. 11.2 Substantially Equivalent Coverage. In the event of a transfer of the Metro System to a nonpublic entity pursuant to Section 2.1, coverage substantially equivalent to all the above provisions shall be maintained by any successor in interest. 12. INTERRUPTION OF SERVICE Should the Metro System services to the Participating Agencies be interrupted as a result of a major disaster, by operation of federal or state law, or other causes beyond the City’s control, the Participating Agencies shall continue all payments required under this Agreement during the period of interruption. 13. NOTICES REQUIRED UNDER AGREEMENT The City and each Participating Agency shall give notice when required by this Agreement. All notices required by this Agreement must be in writing and must be sent via email and either served personally or mailed via first class U.S. mail. The notices shall be sent to the officer listed for each Party, at the address and email address listed for each Party in Exhibit D, Notice Listing, in accordance with this Section. If a Party wishes to change the officer and/or address to which notices are given, the Party shall notify all other Parties in accordance with this Section. Upon such notice, the City shall amend Exhibit D to reflect the changes. The amendment shall be made within sixty (60) days after receipt of the Party’s notice regarding the change in officer and/or address. The City shall keep an updated version of Exhibit D, notated with the most recent amendment date, on file with the City Public Utilities Department. The City shall provide a copy of the amended Exhibit D to all Parties by no later than sixty (60) days after amending Exhibit D. 14. EFFECTIVE DATE AND EXPIRATION 14.1 Effective Date. Once all Parties have executed this Agreement, this Agreement shall be considered effective on July 1, 2026 irrespective of the date on which the last executing party signs the Agreement. Page 166 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 38 - 6-12-26 4932-3639-7490 14.2 Expiration. Subject to the rights and obligations set forth in Section 14.3, unless amended, replaced, or terminated earlier by mutual consent of all the Parties, this Agreement shall expire on June 30, 2065. This Agreement is subject to extension by agreement of the Parties. The Parties shall commence discussions on an agreement to provide wastewater treatment services beyond the year 2065 on or before December 31, 2055, or at such time, if any, that the PLWTP is required to be upgraded to secondary treatment. The Parties may create, amend or terminate any associated Administrative Agreements addressing implementation of this Agreement, as provided in this Agreement. 14.3 Contract Capacity Rights Survive Expiration. The Participating Agencies’ Contract Capacity rights and rights to obtain wastewater treatment services from the facilities referred to in, or constructed pursuant to this Agreement shall survive the expiration of the Agreement. Provided, however, for any Participating Agency to exercise such rights, the Participating Agency shall comply with all the following requirements: (a) provide at least six months’ written notice prior to the expiration of this Agreement; (b) upon expiration of this Agreement, pay their proportional share of Metro System Costs according to the billing methodologies set forth in this Agreement in order to maintain their right(s) to such wastewater treatment services; and (c) agree to recalculate and pay proportional share of future Metro System Costs based on the City’s and all remaining Participating Agencies’ proportionate shares. In the event this Agreement expires and one or more Participating Agency(ies) continue to pay their proportional share of all Metro System Costs, the City shall have the right to continue managing, operating, and expanding the Metro System subject to the same terms set forth in this Agreement, unless otherwise agreed to in writing by and between the City and a Participating Agency. In the event one or more Participating Agency(ies) exercise its/their right(s) to maintain Contract Capacity and wastewater treatment services, such Participating Agency(ies) shall also maintain the right to continue receiving any and all revenues contemplated by this Agreement, including, but not limited to, Metro System Revenues. 14.4 Abandonment. After June 30, 2065, the City may abandon operation of the Metro System upon delivery of notice to the Participating Agencies ten (10) years in advance of said abandonment. Upon notice by the City to abandon the Metro System, the Parties shall meet and confer over the nature and conditions of such abandonment. In the event the Parties cannot reach agreement, the matter shall be submitted to mediation under Section 10. In the event of abandonment, the City shall retain ownership of all Metro System assets free of any claim of the Participating Agencies. Abandonment by the City with continued operation by a different entity shall not terminate or affect a Contract Capacity rights of a Participating Agency so long as that Participating Agency has continued to pay their proportional share of Capital Improvement Costs and Operation and Maintenance Costs according to the billing methodologies set forth in this Agreement. Nothing in this language shall be construed to require the City to continue as operator of the Metro System after the ten-year (10) notice period has run. 15. ADMINISTRATIVE AGREEMENTS 15.1 Use and Process for Administrative Agreements. 15.1.1 Purpose. Administrative Agreements are intended to implement the intent of the Parties in an efficient and effective manner without reopening or renegotiating the terms of this Agreement. Administrative Agreements are limited to addressing issues that are authorized by Page 167 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 39 - 6-12-26 4932-3639-7490 this Agreement. Administrative Agreements are separate and distinct from Exhibits to this Agreement, and are designed to address procedural, operational, technical, and administrative issues. Terms in this Agreement may only be modified through the Joint Administrative Approval Process if this Agreement expressly authorizes the use of an Administrative Agreement. 15.1.2 Amendments, Supplements, or Successors to Administrative Agreements. Where this Agreement refers to an Administrative Agreement, such reference shall include any amendment(s) to that Administrative Agreement or supplemental or successor Administrative Agreement(s). 15.1.3 Function. Administrative Agreements are made among all the Parties but deal with a specific function or group of like functions, for the benefit of regional wastewater treatment within the Metro System, or for the implementation of this Agreement. 15.1.4 Current Agreements. The Administrative Agreements which are approved and executed simultaneously with the execution of this Agreement are listed Exhibit I, List of Administrative Agreements. The City shall update Exhibit I each time an Administrative Agreement is approved, amended, revised or terminated pursuant to this Agreement. 15.1.5 Development and Joint Administrative Approval Process. Any Party can present an Administrative Agreement, or an amendment or supplement thereto, or termination thereof, to the City for approval by way of the Joint Administrative Approval Process set forth in this Section. The City will endeavor in good faith to respond within 60 days of submission of a proposed Administrative Agreement. If the City needs additional time to evaluate the proposed Administrative Agreement, it will advise all Participating Agencies in writing of the anticipated review time. Once an Administrative Agreement receives City’s Administrative Approval, then, with respect to the Participating Agencies, the proposed Administrative Agreement may be presented to the Metro JPA at a duly noticed meeting for review and a first reading. Sixty (60) days or more after the first reading, after the Metro JPA Directors have had opportunity to consult with their respective agency staff and governing boards, the Administrative Agreement may be presented at a duly noticed meeting for a second reading and approved upon an affirmative vote by no less than two-thirds of the members of the Metro JPA during a duly noticed public meeting in other words, upon the affirmative vote of at least eight or more of the twelve members of the Metro JPA, irrespective of how many Metro JPA Directors are present at the meeting, unless the number of Participating Agencies changes), except that any changes to (i) the FAB, including the Functional Design Methodology required to be approved by way of an Administrative Agreement under Section 5.2.1.3, (ii) how Repurified Water Revenue is shared under Section 6.6, (iii) how the Capital Expense Rate is determined as set forth in Section 6.7; or (iv) how Pure Water Program Cost Allocation and Revenues for Phase 2 are calculated under Section 7, shall require approval by no less than three-quarters of the members of the Metro JPA during a duly noticed public meeting (in other words, upon the affirmative vote of at least nine or more of the twelve members of the Metro JPA, irrespective of how many Metro JPA Director are present at the meeting, unless the number of Participating Agencies changes). If the second reading does not occur within One Hundred and Twenty (120) days after the first reading, the proposed Administrative Agreement shall no longer be taken into consideration, unless the City and the Metro JPA Directors agree to a different timeline. An Administrative Agreement, amendment thereto, or termination thereof, must receive City’s Administrative Approval and at least a two-third affirmative vote by the Metro JPA Page 168 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 40 - 6-12-26 4932-3639-7490 Directors before it can become effective. Administrative Agreements are binding contracts as against the City and all Participating Agencies, irrespective of whether or not any Participating Agency’s particular Metro JPA Director voted to approve the agreement or not, or was absent or abstained. The Metro JPA has the authority to bind the Participating Agencies to Administrative Agreements pursuant to the delegated authority provided to the Metro JPA in Section 9.3 herein. 16. GENERAL 16.1 Exhibits. 16.1.1 Exhibit List. This Agreement references Exhibits A through J. Each exhibit is attached to this Agreement and is incorporated herein by reference. All exhibits to this agreement shall be listed in Exhibit K, Exhibit List. The City shall update the Exhibit List from time to time each time an Exhibit is amended or revised pursuant to this Agreement. 16.2 Electronic Exhibits and Attachments. Acknowledgement and Acceptance: The Parties hereby acknowledge and agree that the exhibit(s) and attachment(s) related to this Agreement, or any of its associated Administrative Agreements, indicated as an Electronic Exhibits above (collectively, the “Electronic Exhibits”) may be in an electronic format that cannot be readily or accurately converted into a physical or printed form. The Parties expressly agree that such Electronic Exhibits shall nonetheless be deemed to be valid and enforceable attachments to this Agreement and shall be incorporated by reference as if fully set forth herein. 16.2.1 Identification and Access: All Electronic Exhibits shall bear the same Exhibit identifier and name (i.e., Exhibit A – Metro Facilities) set forth in the Exhibit List, and shall be clearly identified as an Electronic Exhibit in the Exhibit List, including a file name, a time stamp of file, and a note indicating the software used to open and view the file, including version. The Electronic Exhibit shall be loaded on to a CD-ROM, DVD-ROM, or other electronic storage medium that is a write-once medium without the ability to further edit. Each Party shall receive an identical copy of the Electronic Exhibit(s) via identical storage mediums. The City shall ensure that all Participating Agencies have full and unrestricted access to Electronic Exhibits for the duration of the Agreement and any applicable retention period thereafter, including by providing access to any necessary software, applications, or systems required to view, interact with, or manipulate the Electronic Exhibits in their native format; such as through website access via the GIS Online platform: https://sandiego.maps.arcgis.com. No interaction or manipulation of any Electronic Exhibit shall in any way constitute a bona fide change or amendment to the Electronic Exhibit. 16.2.2 Storage and Security: Each Party shall be responsible for securely storing and maintaining the integrity of the Electronic Exhibits in their possession or control. This includes, but is not limited to, implementing and maintaining reasonable and appropriate technical, administrative, and physical safeguards to protect the confidentiality, availability, and integrity of the Electronic Exhibits, and to prevent unauthorized access, disclosure, alteration, or destruction thereof. 16.2.3 Authentication and Admissibility: The Parties hereby stipulate and agree that the Electronic Exhibits shall be deemed to be original documents and authentic for all purposes Page 169 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 41 - 6-12-26 4932-3639-7490 under applicable law, and that the Parties may rely upon and introduce such Electronic Exhibits as evidence in any proceeding arising out of or relating to this Agreement, without the need for further foundation, authentication, or certification. 16.2.4 Receipt and Completeness: Each Party hereby acknowledges and confirms that they have received, reviewed, and had a reasonable opportunity to inspect all Electronic Exhibits that are attached to and incorporated into this Agreement as of the Effective Date. By executing this Agreement, each Party represents and warrants that, to the best of their knowledge, the Electronic Exhibits are complete, accurate, and free from material errors, omissions, or defects. The Parties further agree to notify the other Party promptly upon discovering any discrepancies or inaccuracies in the Electronic Exhibits, and to cooperate in good faith to resolve any such issues in a timely manner. 16.2.5 Amendments and Modifications to Electronic Exhibits: Any amendments or modifications to the Electronic Exhibits shall be made in accordance with the procedures set forth in this Agreement for amending or modifying the terms and conditions hereof, and any such amended or modified Electronic Exhibits shall be deemed to replace and supersede any prior version thereof. Amended Electronic Exhibits shall also be loaded onto a new and separate CD- ROM, DVD-ROM, or other electronic storage medium that is a write-once medium without the ability to further edit. Each Party shall receive identical copies of the Electronic Exhibits via identical storage mediums. Amended Electronic Exhibits shall bear identical Exhibit Identifiers as their predecessor exhibits, but with a different suffix (for example, Exhibit A, when amended, shall be identified as Exhibit A-1, a subsequent amendment shall be identified as Exhibit A-2, etc.). 16.3 Amendments to Agreement. There shall be four (4) ways to amend, modify, and/or change the terms set forth in this Agreement: 16.3.1 Amendments. Except as set forth in Sections 16.3.2, 16.3.3, and 16.3.4, amendments to this Agreement require the approval of all Parties. Such amendments must be in writing and signed by a duly authorized representative from each Party. Unless specifically referenced as being subject to one of the approval mechanisms set forth in Sections 16.3.2, 16.3.3, or 16.3.4 below, any amendment, modification, and/or changes to the terms of this Agreement must occur pursuant to this Section 16.3.1. This provision controls over all other provisions in this Agreement. 16.3.2 Joint Administrative Approval Process. As set forth in this Agreement, the Joint Administrative Approval Process requires the approval described in Section 15.1.5. The following actions may be taken subject to the Joint Administrative Approval Process: a) Agreements for New Contract Capacity as specifically set forth in Section 3.3 b) Addition of new Metro Facilities or conversion of City facility to a Metro facility as specifically set forth in Section 4.2 c) Changes to Exhibit E (Methodology for Contract Capacity Transfers) Page 170 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 42 - 6-12-26 4932-3639-7490 d) Revisions to FAB as specifically set forth in Section 5.2.1.3, except as provided therein e) Changes to Finance, Budgeting, and Accounting System of Charges as specifically set forth in Section 5.11 f) Changes to Costs Excluded from Metro System Costs – Phase 1 as specifically set forth in Section 6.3 g) Amending the formula for Repurified Water Revenue as specifically set forth in Section 6.6.2 h) Changes to Finance, Budgeting, and Accounting for the Pure Water Program Cost Allocation and Revenues for Phase 1 as specifically set forth in Section 6.8 i) Certain terms relating to Phase 2 as specifically set forth in Section 7.1 j) Changes to Costs Excluded from Metro System Costs – Phase 2 as specifically set forth in Section 7.2 k) Terms regarding revenue sharing for Repurified Water for Phase 2 as specifically set forth in Section 7.3 l) Terms regarding the Capital Expense Rate for Phase 2 as specifically set forth in Section 7.4 m) Creation, changes, amendments, modifications to, or terminations of any Administrative Agreements as specifically set forth in Article 15. 16.3.3 Two-Party Approval. As set forth in this Agreement, Two-Party Approval requires the City’s Administrative Approval and a two-thirds (2/3) vote or greater of the Metro JPA Directors present at a duly noticed Metro JPA public meeting. The following actions may be taken subject to Two-Party Approval: a) Determinations regarding liability as specifically set forth in Section 2.5.5 b) Contract Capacity Transfers – Decreases as specifically set forth in Section 4.4.3.2 c) Changes to Strength measurements as specifically set forth in Section 4.5.2 16.3.4 City Administrative Approval. As set forth in this Agreement, the City’s Administrative Approval requires discussion, evaluation, and approval by the Director of the City Page 171 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 43 - 6-12-26 4932-3639-7490 of San Diego’s Public Utilities Department or their designee. The City may, in the City’s sole discretion, refer a decision subject to the City’s Administrative Approval to the City Council for a recommendation, approval, or other action. No action is required on the part of a Participating Agency. The following actions may be taken subject to the City’s Administrative Approval: a) Transfers of Contract Capacity as specifically set forth in Section 3.2 b) Reductions in Metro System Capacity as specifically set forth in Section 3.4 c) Amending Exhibit B as specifically set forth in Section 3.6 d) Amending Exhibit A as specifically set forth in Section 4.2 e) Contract Capacity Transfers – Increases as specifically set forth in Section 4.4.3.1 f) Changes to Exhibit F (Metro System Flow Formulas and Sampling Locations) as specifically set forth in Section 4.5.1 g) Changes to FAB to include measurements required by law as specifically set forth in Section 5.2.1.3 h) Changes to Exhibit H if CWA changes their rate structure as specifically set forth in Section 6.6.2 i) Changes to Exhibit D (Notice) as specifically set forth in Section 13. 16.4 Construction of Agreement. 16.4.1 Drafting of Agreement. It is acknowledged that the City and the Participating Agencies, with the assistance of competent counsel, have participated in the drafting of this Agreement and that no ambiguity should be construed for or against the City or any Participating Agency on account of such drafting. 16.4.2 Entire Agreement. The City and each Participating Agency represent, warrant and agree that no promise or agreement not expressed herein has been made to them, that this Agreement contains the entire agreement between the Parties, that this Agreement supersedes any and all prior agreements or understandings between the Parties unless otherwise provided herein, and that the terms of this Agreement are contractual and not a mere recital; that in executing this Agreement, no Party is relying on any statement or representation made by the other Party, or the other Party’s representatives concerning the subject matter, basis or effect of this Agreement other than as set forth herein; and that each Party is relying solely on its own judgement and knowledge. 16.4.3 Agreement Binding on All; No Third-Party Beneficiaries. This Agreement shall be binding upon and shall inure to the benefit of each of the Parties, and each of their Page 172 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 44 - 6-12-26 4932-3639-7490 respective successors, assigns, trustees or receivers. All the covenants contained in this Agreement are for the express benefit of each and all such Parties. This Agreement is not intended to benefit any third parties, and any such third-party beneficiaries are expressly disclaimed. 16.4.4 Severability. 16.4.4.1 Should any provision of this Agreement or any associated Administrative Agreement be held invalid or illegal, such invalidity or illegality shall not invalidate the whole of the Agreement, but, rather, the Agreement shall be construed as if it did not contain the invalid or illegal part, and the rights and obligations of the Parties shall be construed and enforced accordingly except to the extent that enforcement of the Agreement without the invalidated provision would materially and adversely frustrate either the City’s or a Participating Agency’s essential objectives set forth in this Agreement or the applicable Administrative Agreement. 16.4.4.2 Should a court determine that one or more components of the allocation of costs set forth in this Agreement or any associated Administrative Agreement places the City or a Participating Agency in violation of Article XIII D, Section 6 of the California Constitution with respect to their ratepayers, such components shall no longer be of force or effect. In such an event, the City and the Participating Agencies shall promptly meet to renegotiate the violative component of the cost allocation to comply with Article XIII D, Section 6 of the California Constitution, and use the dispute resolution process in Section 10 of this Agreement if an agreement cannot be reached through direct negotiation. 16.4.4.3 Should a state or federal agency provide a final, written determination that the method of allocating Pure Water Program Capital Improvement Costs under this Agreement violates the requirements of state or federal grants or loans which are, or will be, used to fund the wastewater components of the Pure Water Program, such allocation method will no longer be of any force or effect. In such an event, the allocation of Repurified Water Revenue and the Capital Expense Rate will continue to be based on the Parties’ actual payments to fund the Pure Water Program Capital Improvement Costs attributable to the Metro System. The City and the Participating Agencies shall also promptly meet to negotiate an alternative cost allocation method that would comply with such grant or loan funding requirements. 16.4.5 Choice of Law. This Agreement and any of its associated Administrative Agreements shall be construed and enforced pursuant to the laws of the State of California. 16.4.6 Recognition of San Diego Sanitation District as Successor to Certain Parties. The Parties hereby acknowledge and agree that the San Diego County Sanitation District is a Participating Agency under this Agreement as the successor in interest to the Alpine Sanitation District, East Otay Mesa Sewer Maintenance District, Lakeside Sanitation District, Spring Valley Sanitation District, and Winter Gardens Sewer Maintenance District. 16.5 Declarations Re: Agreement. 16.5.1 Understanding of Intent and Effect of Agreement. The Parties expressly declare and represent that they have read the Agreement and that they have consulted with their respective counsel regarding the meaning of the terms and conditions contained herein. The Parties Page 173 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 45 - 6-12-26 4932-3639-7490 further expressly declare and represent that they fully understand the content and effect of this Agreement and they approve and accept the terms and conditions contained herein, and that this Agreement is executed freely and voluntarily. 16.5.2 Warranty Regarding Obligation and Authority to Enter Into This Agreement. Each Party represents and warrants that its respective obligations herein are legal and binding obligations of such Party, that each Party is fully authorized to enter into this Agreement, and that the person signing this Agreement hereinafter for each Party has been duly authorized to sign this Agreement on behalf of said Party. 16.6 Right to Make Other Agreements. Nothing in this Agreement limits or restricts the right of the City or the Participating Agencies to make separate agreements among themselves, including through joint powers agreements, without the need to amend this Agreement, provided that such agreements are consistent with this Agreement. Nothing in this Agreement or Section 6 limits or restricts the right of the City or the Participating Agencies to enter into separate agreements regarding the industrial pretreatment program, or for the purchase or sale of Repurified Water produced by the Water Repurification System, or sharing in City Water Utility PW Costs; however, such agreements shall not affect the cost allocation and Metro System revenues delineated in Section 5. 16.7 Statute of Limitations to Resolve Billing Issues. Notwithstanding any longer statute of limitations in State law, if the City or a Participating Agency wishes to dispute a bill (including, but not limited to, an audited bill or an audit reconciliation) on the basis of an alleged overpayment or underpayment arising under this Agreement, the Party alleging the dispute must provide written notice regarding the disputed bill to all Parties to this Agreement promptly upon discovery of such a billing issue. The written notice shall invoke or reference this Section. The Parties agree that such refunds or collections shall not accrue for more than three (3) years from the date that such billing is received by the Participating Agency, or one (1) year from the date that an audited reconciliation is received by the Participating Agency, whichever date is later. The City and the Participating Agencies hereby waive any applicable statute of limitations available under State law that exceed the time frames set forth in this Section 16.7. Upon receipt of the written notice regarding the billing dispute, any Participating Agency wishing to participate in the resolution of the dispute shall be allowed to do so and to present evidence to all Parties in support of their position. The involved Parties’ determination regarding the outcome of the billing dispute, including any related adjustments to each Participating Agency’s share of net Metro System costs or revenues resulting from the resolution of such billing issues, shall be final. Nothing in this section relieves a Participating Agency from its obligations to make timely payments under this Agreement irrespective of whether or not a bill is being disputed. If the Parties are unable to resolve a billing dispute, the Parties shall utilize the dispute resolution processes in this Agreement. 16.8 Counterparts and Electronic Signatures. This Agreement may be executed in counterparts. This Agreement shall become operative as soon as one counterpart hereof has been executed by each Party. The counterparts so executed shall constitute one Agreement notwithstanding that the signatures of all Parties do not appear on the same page. A faxed, .pdf, or other electronic copy of the fully executed original version of this Agreement shall have the same legal effect as an executed original for all purposes. Electronic signatures (including but not limited Page 174 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 46 - 6-12-26 4932-3639-7490 to signatures via DocuSign) shall be acceptable, enforceable, and shall have the same legal effect as an original signature. 16.9 Transparency. Upon request, the City shall promptly provide each Participating Agency with access to all records and information reflecting Flow and Strength of sewage in the Metro System, including, but not limited to, Flow data from all Metro System meters, worksheets or calculations that are used by City to develop cost information for any costs contemplated by this Agreement, and any Strength or other data utilized by the City when calculating annual sewage Flow and/or other costs imposed pursuant to this Agreement (including, but not limited to, pretreatment costs). The Parties shall work in good faith together to ensure the Participating Agencies have reasonable and full transparency under this Agreement. 16.10 Incorporation of Recitals. All of the recitals set forth in this Agreement, and all of the exhibits attached to this Agreement, are by this reference incorporated in and made a part of this Agreement as though fully set forth herein. 16.11 Joint Exercise of Power. It is the intent of the Parties that this Agreement is intended to exercise the governmental authority granted pursuant to Gov. Code Section 6500 et seq. which provides for the joint exercise of governmental powers. IN WITNESS WHEREOF, the Parties have executed this Second Amendment and Restated Regional Wastewater Disposal Agreement and the associated Administrative Agreements(s) identified herein as of the date first set forth above. CITY OF CHULA VISTA ame: Title: Approved as to Form: ame: Title: CITY OF CORONADO ame: Title: Approved as to Form: ame: Title: CITY OF DEL MAR ame: Title: Approved as to Form: ame: Title: CITY OF EL CAJON ame: Title: Approved as to Form: ame: Title: Page 175 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 47 - 6-12-26 4932-3639-7490 CITY OF IMPERIAL BEACH ame: Title: Approved as to Form: ame: Title: CITY OF LA MESA ame: Title: Approved as to Form: ame: Title: LEMON GROVE SANITATION DISTRICT ame: Title: Approved as to Form: ame: Title: CITY OF NATIONAL CITY ame: Title: Approved as to Form: ame: Title: OTAY WATER DISTRICT ame: Title: Approved as to Form: ame: Title: PADRE DAM MUNICIPAL WATER DISTRICT ame: Title: Approved as to Form: ame: Title: CITY OF POWAY ame: Title: Approved as to Form: ame: Title: CITY OF SAN DIEGO ame: Title: Approved as to Form: ame: Title: Page 176 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 48 - 6-12-26 4932-3639-7490 SAN DIEGO COUNTY SANITATION DISTRICT ame: Title: Approved as to Form: ame: Title: Page 177 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 49 - 6-12-26 4932-3639-7490 EXHIBIT A Metro Facilities (Electronic Exhibit); file name: 2025-10_Exhibit A Metro Facilities.aprx; time stamp of file: 10/23/2025 3:38 PM, software used to open and view file including version: ArcGIS Pro 3.5.0; included herewith as CD-ROM/DVD-ROM Page 178 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Exhibit A: Listing of Metro Facilities as of 6/12/2026 Metro Facilities (Electronic Exhibit); file name: 2025-10_Exhibit A Metro Facilities.aprx time stamp of file: 10/23/2025 3:38 PM software used to open and view file including version: ArcGIS Pro 3.5. Page 179 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 1 The South Bay Land/Ocean Outfall is jointly owned by the International Boundary and Water Commission, U.S. Section (60.06%) and the City of San Diego (39.94%). The capacity of the City's portion of the outfall as of the date of this Agreement is 74 MGD average dry weather flow, of which the Metro System has a capacity right to 69.2 MGD and the City as an exclusive right to 4.8 MGD 2 Gravity pipeline connection between NCWRP and the North Metro Interceptor 3Included separately from rest of treatment plant to acknowledge role in sludge treatment process. EXHIBIT A METRO FACILITIES AS OF 6/12/2026 TREATMENT FACILITIES Point Loma Facilities (PLWWTP) Advanced Primary Treatment Plant Ocean Outfall Access Road Power Generation Facility North City Water Reclamation Plant (NCWRP) South Bay Water Reclamation Plant (SBWRP) South Bay Land/Ocean Outfall1 SLUDGE TREATMENT CONVEYANCE FACILITIES Metro Biosolids Center (MBC) Point Loma Digesters3 Digested Sludge Pipeline: Point Loma to MBC Raw sludge pipeline: NCWRP to MBC Centrate Pipeline: MBC to NCWRP Raw sludge pipeline: SBWRP to South Metro Interceptor CONVEYANCE Pump Station 1 Pump Station 1 Force Main Pump Station 2 Page 180 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 1 The South Bay Land/Ocean Outfall is jointly owned by the International Boundary and Water Commission, U.S. Section (60.06%) and the City of San Diego (39.94%). The capacity of the City's portion of the outfall as of the date of this Agreement is 74 MGD average dry weather flow, of which the Metro System has a capacity right to 69.2 MGD and the City as an exclusive right to 4.8 MGD 2 Gravity pipeline connection between NCWRP and the North Metro Interceptor 3Included separately from rest of treatment plant to acknowledge role in sludge treatment process. Pump Station 2 Force Mains Pump Station 2 Backup Power Generation Facility South Metro Interceptor North Metro Interceptor Grove Avenue Pump Station Grove Avenue Pump Station Force Main Rose Canyon Parallel Trunk Sewer 2 Second Rose Canyon Trunk Sewer 2 East Mission Bay Trunk Sewer 2 Morena Blvd. Interceptor 2 Metro System Meters (including 88 billing meters and 14 operational meters) North City Tunnel Connector West Point Loma Interceptor OTHER FACILITIES Environmental Monitoring and Technical Services Laboratory (95% Metro Ownership) Metro Operation Center aka MOC (17% Metro Ownership) Dairy Mart Road & Bridge FUTURE METRO FACILITIES Phase 1 Pure Water (Under Construction – Percent ownership will be assigned after audit) Expand NCWRP Morena Pump Station Morena Pump Station Force Main Centrate/RSDP Line (From NCWRP to North Metro Interceptor) East Mission Gorge / East County residuals line (Water, Muni, and Metro combined assets) Page 181 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 1 The South Bay Land/Ocean Outfall is jointly owned by the International Boundary and Water Commission, U.S. Section (60.06%) and the City of San Diego (39.94%). The capacity of the City's portion of the outfall as of the date of this Agreement is 74 MGD average dry weather flow, of which the Metro System has a capacity right to 69.2 MGD and the City as an exclusive right to 4.8 MGD 2 Gravity pipeline connection between NCWRP and the North Metro Interceptor 3Included separately from rest of treatment plant to acknowledge role in sludge treatment process. Phase 2 Pure Water Planned Phase 2 Pure Water (TBD) Phase 2 Pure Water Centrate Line (TBD) Reserved Rights- Other Future Facilities The facilities listed in this category will potentially be required as part of the Metro System for hydraulic capacity, good engineering practices and/or compliance with applicable law, rules or regulations, including compliance with OPRA, and continuation and maintaining the City’s Waiver of applicable treatment standards at the Point Loma Wastewater Treatment Plant Waiver”). South Bay Secondary Treatment Plant (21-28 MGD) South Bay Secondary Sewers & Pump Station (Sweetwater River) South Bay Sludge Processing Facility Wet Weather Storage Facilities Page 182 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 183 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 50 - 6-12-26 4932-3639-7490 EXHIBIT B DISTRIBUTION OF WASTEWATER SYSTEM CAPACITY RIGHTS Page 184 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 1 2 3 4 5 6 7 Average Flow2, MGD Incremental Peak Flow3, MGD RSPD4, MGD Total Allowable Flow3, MGD TSS2, 1,000 lbs. COD2, 1,000 lbs. Pure Water Phase 15 18.33 19.52 0 37.85 22,082 38,419 11.699% 1.90 3.03 0 4.93 2,089 3,336 1.152% 0.00 0.30 0 0.30 0 0 0.020% 1.79 3.48 0 5.27 1,915 3,336 1.096% 1.29 19.93 0.602 21.82 2,196 3,052 0.497% 2.47 4.48 0 6.95 2,045 3,844 1.411% 5.29 23.90 0 29.19 4,668 9,636 2.823% 0.07 1.67 0.310 2.05 238 293 0.153% 2.40 4.51 0 6.91 2,289 4,387 1.395% 4.65 3.07 0 7.72 4,562 9,161 2.852% 0.38 0.57 0 0.95 984 835 0.457% 0.44 6.54 0.364 7.34 632 890 0.444% 3.10 8.80 0 11.90 3,113 5,073 1.869% 5.74 5.05 0 10.79 6,039 10,597 3.765% 0.02 1.08 0.080 1.18 65 80 0.044% 47.9 105.9 1.356 155.1 52,916 92,938 29.677% 124.05 136.16 0 260.21 130,032 252,818 70.323% 0 0 14.3 0.00 0 0 0 124.1 136.2 14.3 260.2 130,032 252,818 70.323% 82 -82 --- 171.9 324.1 15.7 497.4 182,948 345,756 100% 2. Based on monthly average flow and strength. 3. Based on hourly average flow. ANNUAL FIXED CAPACITY RIGHTS1 DISTRIBUTION OF WASTEWATER SYSTEM CAPACITY RIGHTS Lakeside/Alpine AGENCY Chula Vista Coronado Del Mar East Otay Mesa El Cajon Imperial Beach La Mesa SUBTOTAL Lemon Grove National City Otay Padre Dam Poway Spring Valley Wintergardens SUBTOTAL 5. Pure Water Phase 1 Capital Melded Percentages as established in Exhibit G of the "Amended and Restated Regional Wastewater Disposal Agreement Between the City of San Diego and the Participating Agencies in the Metropolitan Sewerage System" memorialized here only for use in billing Pure Water Phase 1 capital expenses. The following fractions were used to calculate the Melded Percentage (Based on 5 year average and not subject to change except by agreement of the parties.) FLOW SS COD 0.482 0.257 0.243 4. Reject Stream from Demineralization Process 1. Currently based on 2050 projected flows and strengths. EXHIBIT B Metro I&I San Diego Wastewater Water TOTAL 7/18/2025Page 185 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 51 - 6-12-26 4932-3639-7490 EXHIBIT C ADMINISTRATIVE PROTOCOL ON ALLOCATION OF OPERATING RESERVES AND DEBT SERVICE COVERAGE TO PARTICIPATING AGENCIES Page 186 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 187 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 188 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 189 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 190 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 191 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 52 - 6-12-26 4932-3639-7490 EXHIBIT D NOTICE LISTING Page 192 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 4914-3650-2326 EXHIBIT D NOTICE LISTING Maria Kachadoorian City Manager City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91919 Phone: (619) 691 5031 mkachadoorian@chulavista ca.gov Tina Friend City Manager City of Coronado 1825 Strand Way Coronado, CA 92113 Phone: (619) 522-7335 cm@coronado.ca.us Ashley Jones City Manager City of Del Mar 1050 Camino Del Mar Del Mar, CA 92014 Phone: 755-9313 ext. 25 ajones@delmar.ca.us Graham Mitchell City Manager City of El Cajon 200 Civic Center Way El Cajon CA 92020 Phone: (619) 441-1716 gmitchell@elcajon.gov Tyler Foltz Greg Humora City Manager City of La Mesa 8130 Allison Avenue La Mesa, CA 91942 Phone: (619) 667-1101 Ghumora@cityoflamesa.us Lydia Romero City Manager City of Lemon Grove 3232 Main Street Lemon Grove, CA 91945 Phone: (619) 464-6934 sdershem@lemongrove.ca.us Scott Huth Acting City Manager City of National City 1243 National City Blvd. National City, CA 91950 Phone: (619) 336-4240 CMO@nationalcityca.gov Chris Hazeltine City Manager City of Poway 13325 Civic Center Drive Poway, CA 92064 Phone: (858) 679-4200 chazeltine@poway.org Mayor Todd Gloria Chief Operating Officer City of San Diego 202 "C" Street San Diego, CA 92101 Phone: (619) 236-5949 mayortoddgloria@sandiego.gov Ebony Shelton Chief Administrative Officer County of San Diego 1600 Pacific Highway, Rm. 209 San Diego, CA 92101 Phone: (619) 531-5250 Cao_mail@sdgounty.ca.gov Jose Martinez General Manager Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley, CA 91977 Phone: (619) 670-2210 jose.martinez@otaywater.gov Kyle Swanson CEO/General Manager Padre Dam Municipal Water District 9300 Fanita Pkwy Santee, CA 92071 Phone: (619) 258-4673 kswanson@padre.org City Manager City of Imperial Beach 825 Imperial Beach Blvd. Imperial Beach, CA 91932 Phone: (619) 423-8300 ext. 7 tfoltz@imperialbeachca.gov Page 193 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 53 - 6-12-26 4932-3639-7490 EXHIBIT E METHODOLOGY FOR CONTRACT CAPACITY TRANSFERS Page 194 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Last Updated: 5/29/2025 EXHIBIT E METHODOLOGY FOR CONTRACT CAPACITY TRANSFERS The following exhibit describes the methodology for transferring contract capacities from the Metro Pooled Capacity (summarized in the table below) to a Party’s contract capacity defined in Exhibit B. POOLED CAPACITY Average Flow, mgd Incremental Peak1, mgd TSS, 1,000 lbs. COD, 1,000 lbs. After Phase 1 Pure Water 0 102 96,820 27,521 After Phase 2 Pure Water 10 20 96,820 27,521 1. At Point Loma WWTP 2. Assume system storage If a transfer of contract capacity is initiated as set forth in Section 4.4.3.1, capacity will be taken from the Pooled Capacity and added to the Party in need of additional capacity. Thereafter, the above table of Pooled Capacity will be updated with the subject column reduced, and Exhibit B will be updated with the subject Party’s contract capacity correspondingly increased. In lieu of transferring average flow capacity from the Pooled Capacity to a Party, the Party can choose to transfer Incremental Peak Flow Capacity to Average Flow Capacity keeping Total Allowable Flow the same, assuming the Party would still have sufficient Total Allowable Flow Capacity for their peak flows. If a transfer of contract capacity as set forth in Section 4.4.3.2, the reverse shall occur and the subject Party’s contract capacity will be reduced in Exhibit B and the Pooled increased. In lieu of transferring average flow capacity to the Pooled Capacity from a Party, the Party can choose to transfer Average Flow Capacity to Incremental Peak Flow Capacity keeping Total Page 195 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Last Updated: 5/29/2025 Allowable Flow the same, if they anticipate needing their current Total Allowable Flow for their peak flows. The remainder of this Exhibit has examples of how these transfers would be performed and the estimated effect on a Party’s share of Metro System Costs under the FAB Billing System. Please note Metro System costs will change from time to time as well as Contract Capacities per Exhibit B, so the following are only examples and not meant to be exact. These examples are based on Exhibit B as of the signing of this agreement, not necessarily the last revision of this exhibit. These examples are currently based on FY24 unaudited costs and estimated FY27 billing units. Page 196 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 197 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 198 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 199 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 200 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 201 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 202 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 54 - 6-12-26 4932-3639-7490 EXHIBIT F METRO SYSTEM FLOW FORMULAS AND SAMPLING LOCATIONS Page 203 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda EXHIBIT F – METRO SYSTEM FLOW FORMULAS AND SAMPLING LOCATIONS JULY 2025 LEGEND Billing and Sampling Meters Billing Meters Municipal Meter Page 204 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda CHULA VISTA Hollister Main Meter CV1 J” ST Meter CV2 G” ST Meter CV3 Autopark Crossings 0.025 mgd) Waterpark & Amphitheater 0.031 mgd) Lagoon Drive 0.011 mgd) Bay Blvd North 106 EDUs) Bay Blvd South 16 EDUs) Gunpowder Point 51 EDUs) Acacia Ave SV to CV 4 EDUs) Combined Housecounts 1,040 EDUs) E. Flower Street Meter CV5 Plaza Bonita-1 Meter CV6M Plaza Bonita-2 Meter CV7M Las Flores Dr Meter CV8 N. Fifth Ave Meter CV9 Acacia Ave Meter CV10 Otay Lakes Road Meter CV11 Proctor Valley Meter CV12 Main Street Meter CV14 CHULA VISTA TOTAL Page 205 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda CORONADO Trans-Bay Meter C1M Amphibious Base Meter C2 North Island Meter C3 CORONADO TOTAL Page 206 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DEL MAR Meter DM2 Riviera Del Mar 110 EDUs) Connection 1 96 EDUs) Connection 2 21 EDUs) Del Mar Estates 27 EDUs) DEL MAR TOTAL Page 207 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda EAST OTAY MESA EOM1 Meter East Otay Mesa 55.4 EDUs) EAST OTAY MESA TOTAL Page 208 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda EL CAJON El Cajon Meter EC1B To LM Meter LM4 To LM 321.5 EDUs) Winter Gardens Meter WG1M Winter Gardens 1,383 EDUs) EL CAJON TOTAL Page 209 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda IMPERIAL BEACH 9th & Imp. Meter IB1 Elder St. Meter IB2M Palm Ave. Meter IB3M2 Georgia Street 170.5 EDUs) Palm Avenue 29.5 EDUs) IMPERIAL BEACH TOTAL Page 210 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda LA MESA La Mesa North LM3 Meter Colorado 16 EDUs) 73rd & Sar. 22 EDUs) Alvarado Trtmnt Plant 61 EDUs) Alvarado Lab 27 EDUs) Alvarado Training Ctr. 2 EDUs) Blue Lake 69 EDUs) East Lake 349 EDUs) Jackson 279 EDUs) Keeny 28 EDUs) Lake Arago 292.7 EDUs) Lake Murray 119.8 EDUs) La Mesa South LM1AM Meter LM7 Meter 68th & Univ 91 EDUs) 67th & Valencia 158.5 EDUs) Rosefield 20 EDUs) Alamo 4 EDUs) Vigo 204 EDUs) 69th & University 34 EDUs) 70th & Colony 551.5 EDUs) 73rd & El Cajon 15.6 EDUs) To SV 52 EDUs) To SV LM2 Meter To SV LM5A Meter To SV LM8 Meter To LG 921.7 EDUs) From EC LM4 Meter From EC 311 EDUs) LA MESA TOTAL Page 211 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda LAKESIDE/ALPINE Meter LS2 LAKESIDE ALPINE TOTAL Page 212 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda LEMON GROVE Winnett & Oriole St LG1M Meter Akins & 69th LG2M Meter Imperial & Viewcrest LG4 Meter Total Lemon Grove to SV 1547.63 EDUs) Net from La Mesa 921.7 EDUs) 69th & Madera LG3 Meter Madera 4 EDUs) Calvacado 121 EDUs) 69th & Klauber 3 EDUs) Gold Lake 48 EDUs) Angelus Avenue 12 EDUs) 69th & Evelyn 4 EDUs) College Avenue 498.6 EDUs) Navy Housing 278 EDUs) College Grove 25.6 EDUs) 69th & Gibson 3 EDUs) College Grove Way 161 EDUs) LEMON GROVE TOTAL Page 213 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda NATIONAL CITY 33rd St NC2 Meter 21st & Hoover NC3A Meter 2262 Hoover NC3B Meter West of I5 NC3C Meter 22nd & Hoover NC Yard HC 2 EDUs) 7th & Wilson NC5 Meter Nordica NC7M Meter Stockman NC15 Meter Southland Ind. Park 76.5 EDUs) Rachael Ave. North 46 EDUs) Olive Avenue 6 EDUs) Bonita Paradise 47 EDUs) Rachel Ave. South 43 EDUs) NC to SV Inter-Agency Compromise 36 EDUs) Plaza Bonita NC8M Meter Sweetwater Road 52.72%) NC13 Meter Prospect St 39.16%) NC16 Meter) SV to NC I-A Compromise 144 EDUs) Harbor Drive NC6 Meter Delta St. NC9M Meter Paradise Val NC10 Meter Olive Ave. NC11 Meter 18th & Rachael NC12 Meter Dalbergia 26.3 EDUs) Nordica 36 EDUs) Bryanview 16 EDUs) Lorenz 42 EDUs) Mariposa 18 EDUs) Ebbs 291 EDUs) Delta St 100.5 EDUs) Navy Sports Center 7 EDUs) NATIONAL CITY TOTAL Page 214 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda NAVY Amphibious Base Meter (C2) North Island Meter (C3) NAVY TOTAL Page 215 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda OTAY Otay Net OTAY TOTAL Page 216 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda PADRE DAM Padre Dam Meter PD1B Lakeside Meter LS2 Simeon Dr. 413 EDUs) Padre Dam Meter PD2 Cowles Mtn. 270 EDUs) Treviso 186 EDUs) PADRE DAM TOTAL Page 217 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda POWAY Springhurst PO2 Meter La Manda 53 EDUs) Camino Del Norte PO1 Meter Holland Canyon PO3M Meter Eastview Ct. PO4 Meter Highland Ranch PO5 Meter Creek Road PO6 Meter Springhurst Street 72 EDUs) Stone Canyon 727.14 EDUs) POWAY TOTAL Page 218 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda SPRING VALLEY SubTotal Chula Vista to SV = Combined Housecounts – Acacia Ave + CV5 + CV6 + CV7M + CV8 + CV9 + CV10 + CV11 + CV12 CV14 Brisbane 5th SV8M Meter Lincoln Acres/Alta Drive 84.4 EDUs) Sweetwater 52.72%) NC13 Meter Prospect St 39.16%) NC16 Meter SV to NC Inter-Agency Compromise 144 EDUs) NC to SV Inter-Agency Compromise 36 EDUs) From NC NC8M Meter SubTotal Chula Vista to SV To SV LM2 Meter To SV LM5A Meter To SV LM8 Meter SubTotal La Mesa to SV 52 EDUs) SubTotal Lemon Grove to SV 1,547.63 EDUs) Bonita BO1 Meter Manzana Way 439 EDUs) Parkbrook Street 197 EDUs) Noeline Avenue 109 EDUs) Worthington Street 64 EDUs) Innsdale Avenue 51 EDUs) Greenridge Avenue 10 EDUs) Ellenwood Circle North 9 EDUs) Delrose Avenue 109 EDUs) Crestmore Avenue 8 EDUs) Potrero Street 61 EDUs) Carlsbad Street 41 EDUs) Otay Net SPRING VALLEY TOTAL Page 219 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda WINTER GARDENS Winter Gardens Meter (WG1M) WG House Count 1,383 EDUs WINTER GARDENS TOTAL Page 220 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda CITY OF SAN DIEGO SD33 Meter N. Harbor Drive 2,550.4 EDUs) SD1E Meter SD2A Meter SD2B Meter Sports Area Blvd. 498 EDUs) SD3 Meter Barnett Avenue 2551.6 EDUs) SD5M Meter SD20 Meter SD40M2 Meter SD42M Meter SD7B Meter SD8 Meter Commercial Street 1,458.6 EDUs) SD12 Meter SD6M Meter Del Mar Net Poway Net SD1B Meter EC1B Meter Padre Dam Net Lakeside Net LM North to San Diego Net SD19 Meter Anna Street 564 EDUs) SD7A Meter SD7C Meter Coronado Net Beach Street 1,944.2 EDUs) SD9 Meter LG to San Diego Net LM South to San Diego Net) SD9D Meter NC7M Meter NC9M Meter Page 221 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda CITY OF SAN DIEGO (Continued) NC10 Meter NC11 Meter Olive Ave. 6 EDUs) NC12 Meter Rachael Ave. North 46 EDUs) NC6 Meter San Diego HC Through NC Total BO1 Meter NC15 Meter Bonita Paradise 47 EDUs) Rachael Ave. South 43 EDUs) Alta Drive 84.4 EDUs) San Diego HC Through SPV Total SD10 Meter Waterpark & Amphitheater Autopark & Crossings PC1 Meter IB2M Meter Georgia Street 170.5 EDUs) Palm Avenue 29.5 EDUs) IB3M2 Meter SB1 Meter SD11 Meter SD11A Meter SD18 Meter Small SD House Count 694.3 EDUs) Elm Street 1,455 EDUs) USN4 Meter USN5 Meter USN8 Meter USN11 Meter SAN DIEGO TOTAL Page 222 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 55 - 6-12-26 4932-3639-7490 EXHIBIT G SAMPLE OF INTEREST CALCULATION Page 223 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Exhibit G - Sample of the Interest Calculation (Section 6.6) Purpose: To document assumptions used to account for the time value of money for shared Pure Water costs (Allocated Shared Costs) that were agreed to be reconciled at a later date based on final Phase 1 project costs. This is discussed in Section 6.6: Reallocation of PWP Costs incurred since FY2014 and cited in Section 6.6.1.3. See the example" Calculator Spreadsheet" below and accompanying footnotes. C D E F G H I J K L M That Year Original Metro Split Split % Original Metro Share Original Water Share Metro Post Allocation Share to Interest 50% Cost - Metro Share%) Running Metro Balance Subject to Interest New Activity + Prior Year Balance + Prior Interest Earning) Yearly Interest Earnings Compounded Monthly) Estimated PA share Average share of Interest Earnings) Annual Interest Rate San Diego City Treasurers) FY 2014 $630,109 50%50%$315,055 $315,055 $283,549 $31,505 $31,505.46 $138.27 $41.48 0.438% FY 2015 $2,476,617 50%50%$1,238,309 $1,238,309 $1,114,478 $123,831 $155,474.59 $871.33 $261.40 0.559% FY 2016 $4,503,182 50%50%$2,251,591 $2,251,591 $2,026,432 $225,159 $381,505.03 $2,971.03 $891.31 0.776% FY 2017 $7,398,893 50%50%$3,699,447 $3,699,447 $3,329,502 $369,945 $754,420.72 $8,150.10 $2,445.03 1.075% FY 2018 $6,194,711 50%50%$3,097,355 $3,097,355 $2,787,620 $309,736 $1,072,306.36 $14,783.19 $4,434.96 1.370% FY 2019 $7,844,738 50%50%$3,922,369 $3,922,369 $3,530,132 $392,237 $1,479,326.46 $31,230.90 $9,369.27 2.091% FY 2020 $8,018,735 50%50%$4,009,367 $4,009,367 $3,608,431 $400,937 $1,911,494.09 $43,708.61 $13,112.58 2.263% FY 2021 50%50%$0 $0 $0 $0 $1,955,202.70 $29,649.45 $8,894.84 1.506% FY 2022 50%50%$1,984,852.16 $16,257.11 $4,877.13 0.816% FY 2023 32%68%$2,001,109.26 $35,993.15 $10,797.94 1.784% FY 2024 32%68%$2,037,102.41 $59,323.71 $17,797.11 2.874% FY 2025 32%68%TBD FY 2026 32%68%TBD FY 2027 32%68%TBD Totals $37,066,985 $18,533,493 $18,533,493 $16,680,143 $1,853,349 $13,764,299 $243,077 $72,923 N/A Pending Final Audits: Estimated Final Metro % of Pure Water Costs (Draft)45% Estimated JPA % Share of Metro Expenses (Draft)30% Page 224 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Exhibit G - Sample of the Interest Calculation (Section 6.6) (Continued) Procedures and Assumptions: The City proposes the following procedures be used to allocate these costs. These costs will be allocated 1 year after substantial completion of Pure Water Phase 1, as part of the annual Audit of Metro costs Projected to be annual audit of metro activity for Fiscal Year 2026). The City will prepare a yearly update to the calculator as part of the preparation for the yearly metro audit. Column Description: Cost Included (Column C)(50/50 POs) from 2014 to 2022 and have been included as part of each yearly audit of Metro JPA Pure Water costs. This sheet is prepared by the City and reviewed by the JPA's consultants on a yearly basis to determine samples for the Pure Water O&M costs. After awarding of all Pure Water construction contracts, new costs will use an updated percentage based on actual awarded construction contracts. This date will be called out on the purchase order sheet and a new line on the calculator will be added to track the change in percent allocation. Open purchase orders using the 50/50 split will be separated on the calculator sheet until they are fully spent, closed or amended to the new split. Original Splits % (Column D & E)These columns split the total costs of the 50/50 POs based on their original share between the water and Metro funds. This establishes each funds initial share of the costs Original Share (Column F & G)These columns split the total costs in Column C by the percentages in Columns D and E. This column uses Metro funds final share of Phase 1 costs, as a percentage of total project costs, and applies it to costs included in Column C. This represents the actual share of costs based on the final allocation costs. This column takes the difference between the initial splits for Metro (Column F) and the Metro post allocation share (Column H). These are the new expenditures from that fiscal year subject to the interest calculation. Running Metro Balance Subject to This column takes any prior year balance in Column J, the prior year accrued interest in Column K and adds the new expenditures from Column I. This is the total balanced Interest (Column J)used to calculate each year's interest owed. Yearly Interest Earnings (Column K)This column takes the annual interest earnings shown in Column M and assumed monthly compounding of Metro balance in Column J. Compounding period is consistent with the City's monthly interest earnings paid on City funds. Estimated PA share (Column L)This column estimates the portion of interest earnings that is expected to be credited to the Participating Agencies. Individual Agencies will be credited during the audit following one year after the substantial completion of Pure Water Phase 1. Agencies will be credited at weighted average of costs from 2014 to one year after substantial completion of Phase 1, based on the PA's individual annual percent share of Metro costs. Annual Interest Rate (Column M)This column shows the annual percent returns on funds invested by the City Treasurer. This is based on the Treasurers annual return on investments as invested under the City's investment policy. This is the rate used to calculate yearly interest owed. Notes This calculator was designed to account for the time value of money related to (50/50 POs). If additional Phase 1item (CIP expenses, Revenue, etc.) need to account for the time value of money, the assumptions used in Columns I-K will remaining consistent in those calculations. Columns C through H and the associated percentages used will be adapted to fit the types of costs being allocated. Page 225 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 56 - 6-12-26 4932-3639-7490 EXHIBIT H SUMMARY OF BILLINGS FROM COUNTY WATER AUTHORITY SHOWING COSTS FOR UNTREATED WATER Page 226 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Fixed Charges Total ($) CWA Customer Service Charge $ 933,611.00 CWA Emergency Storage Charge $ 2,197,725.00 CWA Infrastructure Access Charge $ 1,760,089.00 CWA Supply Reliability Charge $ 1,504,825.00 Supply Charges Volume (AF)Rate ($/AF)Total ($) CWA Forced Delivery - Untreated 231.3 $ 1,200.00 $ 277,560.00 CWA Regular Meter Delivery - Treated 2,069.2 $ 1,600.00 $ 3,310,720.00 CWA Regular Meter Delivery - Untreated 12,973.7 $ 1,200.00 $ 15,568,440.00 Subtotal 15,274.2 $ 19,156,720.00 CYTD Volume (AF) 46,134.1 17,627.4 129,500.4 193,261.9 Net Deliveries Current Month Volume (AF) Adjustment Volume AF) CYTD Volume (AF) Tier 1 Total Treated Water Delivered 2,081.1 17,964.3 Tier 1 Total Untreated Water Delivered 7,970.5 96,706.3 Tier 1 Usage 10,051.6 114,670.6 Water Exchanges Volume (AF)Rate($/AF)Total ($) CWA Total To Other Agencies Untreated Water (5,285.0)$ 1,200.00 ($ 6,342,000.00) CWA Total From Other Agencies Treated Water 11.9 $ 1,600.00 $ 19,040.00 CWA Total From Other Agencies Untreated Water 50.5 $ 1,200.00 $ 60,600.00 Subtotal (5,222.6)($ 6,262,360.00) CYTD Volume (AF) 79,483.9) 336.9 473.1 78,673.9) Subtotal 10,051.6 $ 1,899,752.40 Generated Date: 01/10/2025 11:21 AM 19-6364 A Public Agency 4677 Overland Avenue, San Diego, California, 92123-1233 858) 522-6673 FAX (858) 522-6561 December 2024 Invoice Summary Billed to: San Diego, City of Mailed: 1/10/2025 Due Date: 2/14/2025 Invoice Number: 1224-15 Page 1 of 8 Service Address: 2797 Caminito Chollas San Diego, CA 92105- Sample Bill from the County WaterAuthorityforallcityofSanDiego Water purchases for the month of December 2024 to provide clarity for any sewer only providers. Additional documentation will be provided at a later date walking from this bill to the purified water calculation Page 227 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Fixed Charges Total ($) MWD Capacity Reservation Charge $ 287,980.00 MWD Readiness-to-Serve Charge $ 406,779.00 Subtotal $ 7,091,009.00 Current Balance $ 21,885,121.40 Previous Balance $ 17,919,593.50 Total Due And Payable $ 39,804,714.90 REMIT TO: SAN DIEGO COUNTY WATER AUTHORITY 4677 Overland Avenue San Diego, CA 92123-1233 Payment is due on the last business day of the month and shall be delinquent if not received in investable funds by 2 p.m. of the tenth business day of the following month. Delinquency charges are 1% of the total amount if paid within five business days of the delinquency, 2% thereafter. Reference San Diego County Water Authority Ordinance No. 2007-03 Revenue Collection Policy for a complete explanation of billing and payment for water deliveries. Generated Date: 01/10/2025 11:21 AM 19-6364 A Public Agency 4677 Overland Avenue, San Diego, California, 92123-1233 858) 522-6673 FAX (858) 522-6561 December 2024 Invoice Summary Billed to: San Diego, City of Mailed: 1/10/2025 Due Date: 2/14/2025 Invoice Number: 1224-15 Page 2 of 8 Service Address: 2797 Caminito Chollas San Diego, CA 92105- Variable Charges Volume (AF) Rate($/AF) Total ($) Transportation Charge - Meter Delivery 15,274.2 $ 189.00 $ 2,886,823.80 Transportation Charge - Water Exchange (5,222.6)$ 189.00 ($ 987,071.40) Variable Charges Volume (AF) Rate($/AF) Total ($) Transportation Charge - Meter Delivery 15,274.2 $ 189.00 $ 2,886,823.80 Transportation Charge - Water Exchange (5,222.6)$ 189.00 ($ 987,071.40) Page 228 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Supply Charges CWA Forced Delivery - Untreated Meter No Begin Read End Read 1000 CU. FT.AC. FT.Rate($/AF)Dollars($) Over Weir,WEIR 248,532 248,761 228 5.2 $ 1,200.00 $ 6,240.00 San Diego,02 2,012,753 2,022,602 9,849 226.1 $ 1,200.00 $ 271,320.00 Untreated Water Subtotal 231.3 $ 277,560.00 Regular Meter Delivery - Treated Meter No Begin Read End Read 1000 CU. FT.AC. FT.Rate($/AF)Dollars($) San Diego, 27 197,491 210,099 12,609 289.5 $ 1,600.00 $ 463,200.00 San Diego, 30 3,079 3,080 2 0.0 $ 1,600.00 $ 0.00 San Diego,10 3,300,807 3,316,240 15,433 354.3 $ 1,600.00 $ 566,880.00 San Diego,11 11,413,060 11,461,025 47,966 1,101.1 $ 1,600.00 $ 1,761,760.00 San Diego,14 5,034,606 5,046,789 12,183 279.7 $ 1,600.00 $ 447,520.00 San Diego,15 3,837,922 3,839,738 1,816 41.7 $ 1,600.00 $ 66,720.00 SD 18/21 Bypass, 18/21 B/P 7,490 7,616 127 2.9 $ 1,600.00 $ 4,640.00 Treated Water Subtotal 2,069.2 $ 3,310,720.00 Regular Meter Delivery - Untreated Meter No Begin Read End Read 1000 CU. FT.AC. FT.Rate($/AF)Dollars($) Generated Date: 01/10/2025 11:21 AM 19-6364 A Public Agency 4677 Overland Avenue, San Diego, California, 92123-1233 858) 522-6673 FAX (858) 522-6561 December 2024 Invoice Detail Billed to: San Diego, City of Mailed: 1/10/2025 Due Date: 2/14/2025 Invoice Number: 1224-15 Page 3 of 8 Service Address: 2797 Caminito Chollas San Diego, CA 92105- Page 229 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Water Exchanges CWA To Other Agencies Untreated Water Exchange Location To Agency AC. FT.Rate($/AF)Dollars($)Comments DCFSV66 San Diego County Water Authority (4,974.8)$ 1,200.00 ($ 5,969,760.00)credit for no purchase Del Mar (NA)Del Mar, City of (78.9)$ 1,200.00 ($ 94,680.00) San Vicente Acct San Diego County Water Authority (231.3)$ 1,200.00 ($ 277,560.00) To Other Agencies Untreated Water Subtotal (5,285.0)($ 6,342,000.00) Supply Charges CWA Leakage (SD-1),01 0 31 540 12.4 $ 1,200.00 $ 14,880.00 San Diego, 28 7,377,561 7,443,701 66,141 1,518.4 $ 1,200.00 $ 1,822,080.00 San Diego, DCFSV66 1,434,378 1,651,079 216,701 4,974.8 $ 1,200.00 $ 5,969,760.00 San Diego,05A 9,627,449 9,733,405 105,956 2,432.4 $ 1,200.00 $ 2,918,880.00 San Diego,05B 8,808,476 8,932,713 124,237 2,852.1 $ 1,200.00 $ 3,422,520.00 San Diego,05C 1,405,570 1,428,831 23,261 534.0 $ 1,200.00 $ 640,800.00 San Diego,06A 2,967,595 2,969,351 1,756 40.3 $ 1,200.00 $ 48,360.00 San Diego,06B WEIR 1,591,412 1,591,432 20 0.5 $ 1,200.00 $ 600.00 San Diego,20 11,002,113 11,028,633 26,520 608.8 $ 1,200.00 $ 730,560.00 Untreated Water Subtotal 12,973.7 $ 15,568,440.00 Supply Charges Subtotal 15,274.2 $ 19,156,720.00 Supply Charges Total 15,274.2 $ 19,156,720.00 Generated Date: 01/10/2025 11:21 AM 19-6364 A Public Agency 4677 Overland Avenue, San Diego, California, 92123-1233 858) 522-6673 FAX (858) 522-6561 December 2024 Invoice Detail Billed to: San Diego, City of Mailed: 1/10/2025 Due Date: 2/14/2025 Invoice Number: 1224-15 Page 4 of 8 Service Address: 2797 Caminito Chollas San Diego, CA 92105- Page 230 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Variable Charges Transportation Charge - Meter Delivery Meter No./Location AC. FT.Rate($/AF)Dollars($)Comments Leakage (SD-1),01 12.4 $ 189.00 $ 2,343.60 Over Weir,WEIR 5.2 $ 189.00 $ 982.80 San Diego, 27 289.5 $ 189.00 $ 54,715.50 San Diego, 28 1,518.4 $ 189.00 $ 286,977.60 San Diego, 30 0.0 $ 189.00 $ 0.00 San Diego, DCFSV66 4,974.8 $ 189.00 $ 940,237.20 Water Exchanges CWA From Other Agencies Treated Water Exchange Location From Agency AC. FT.Rate($/AF)Dollars($)Comments El Camino Real Santa Fe I.D.1.0 $ 1,600.00 $ 1,600.00 Highland Ct.Santa Fe I.D.0.2 $ 1,600.00 $ 320.00 Otay TP Otay W.D.10.7 $ 1,600.00 $ 17,120.00 From Other Agencies Treated Water Subtotal 11.9 $ 19,040.00 From Other Agencies Untreated Water Exchange Location From Agency AC. FT.Rate($/AF)Dollars($)Comments Fletcher Well Helix W.D.50.5 $ 1,200.00 $ 60,600.00 From Other Agencies Untreated Water Subtotal 50.5 $ 60,600.00 Water Exchanges Subtotal (5,222.6)($ 6,262,360.00) Water Exchanges Total (5,222.6)($ 6,262,360.00) Generated Date: 01/10/2025 11:21 AM 19-6364 A Public Agency 4677 Overland Avenue, San Diego, California, 92123-1233 858) 522-6673 FAX (858) 522-6561 December 2024 Invoice Detail Billed to: San Diego, City of Mailed: 1/10/2025 Due Date: 2/14/2025 Invoice Number: 1224-15 Page 5 of 8 Service Address: 2797 Caminito Chollas San Diego, CA 92105- Page 231 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Variable Charges San Diego,02 226.1 $ 189.00 $ 42,732.90 San Diego,05A 2,432.4 $ 189.00 $ 459,723.60 San Diego,05B 2,852.1 $ 189.00 $ 539,046.90 San Diego,05C 534.0 $ 189.00 $ 100,926.00 San Diego,06A 40.3 $ 189.00 $ 7,616.70 San Diego,06B WEIR 0.5 $ 189.00 $ 94.50 San Diego,10 354.3 $ 189.00 $ 66,962.70 San Diego,11 1,101.1 $ 189.00 $ 208,107.90 San Diego,14 279.7 $ 189.00 $ 52,863.30 San Diego,15 41.7 $ 189.00 $ 7,881.30 San Diego,20 608.8 $ 189.00 $ 115,063.20 SD 18/21 Bypass, 18/21 B/P 2.9 $ 189.00 $ 548.10 Transportation Charge - Meter Delivery Subtotal 15,274.2 $ 2,886,823.80 Transportation Charge - Water Exchange Meter No./Location AC. FT.Rate($/AF)Dollars($)Comments DCFSV66 (4,974.8)$ 189.00 ($ 940,237.20)credit for no purchase Del Mar (NA)(78.9)$ 189.00 ($ 14,912.10) El Camino Real 1.0 $ 189.00 $ 189.00 Fletcher Well 50.5 $ 189.00 $ 9,544.50 Highland Ct.0.2 $ 189.00 $ 37.80 Otay TP 10.7 $ 189.00 $ 2,022.30 San Vicente Acct (231.3)$ 189.00 ($ 43,715.70) Transportation Charge - Water Exchange Subtotal (5,222.6)($ 987,071.40) Generated Date: 01/10/2025 11:21 AM 19-6364 A Public Agency 4677 Overland Avenue, San Diego, California, 92123-1233 858) 522-6673 FAX (858) 522-6561 December 2024 Invoice Detail Billed to: San Diego, City of Mailed: 1/10/2025 Due Date: 2/14/2025 Invoice Number: 1224-15 Page 6 of 8 Service Address: 2797 Caminito Chollas San Diego, CA 92105- Page 232 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Fixed Charges CWA Customer Service Charge Annual ($)Monthly ($) Annual Customer Service Charge for Calendar Year 2024 $ 11,203,332.00 Customer Service Charge December $ 933,611.00 Emergency Storage Charge Annual ($)Monthly ($) Annual Emergency Storage Charge for Calendar Year 2024 $ 26,372,700.00 Emergency Storage Charge December $ 2,197,725.00 Infrastructure Access Charge Annual ($)Monthly ($) Annual Infrastructure Access Charge for Calendar Year 2024 $ 21,121,068.00 Infrastructure Access Charge December $ 1,760,089.00 Supply Reliability Charge Annual ($)Monthly ($) Annual Supply Reliability Charge for Calendar Year 2024 $ 18,057,900.00 Supply Reliability Charge December $ 1,504,825.00 MWD Capacity Reservation Charge Annual ($)Monthly ($) Annual Capacity Reservation Charge for Calendar Year 2024 $ 3,455,760.00 Capacity Reservation Charge December $ 287,980.00 Readiness-to-Serve Charge Annual ($)Monthly ($) Annual Readiness-to-Serve Charge for Fiscal Year 2025 $ 4,881,348.00 Readiness-to-Serve Charge December $ 406,779.00 Fixed Charges Subtotal $ 7,091,009.00 Current Balance $ 21,885,121.40 Previous Balance $ 17,919,593.50 Total Due And Payable $ 39,804,714.90 Variable Charges Subtotal 10,051.6 $ 1,899,752.40 Variable Charges Total 10,051.6 $ 1,899,752.40 Generated Date: 01/10/2025 11:21 AM 19-6364 A Public Agency 4677 Overland Avenue, San Diego, California, 92123-1233 858) 522-6673 FAX (858) 522-6561 December 2024 Invoice Detail Billed to: San Diego, City of Mailed: 1/10/2025 Due Date: 2/14/2025 Invoice Number: 1224-15 Page 7 of 8 Service Address: 2797 Caminito Chollas San Diego, CA 92105- Page 233 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda REMIT TO: SAN DIEGO COUNTY WATER AUTHORITY 4677 Overland Avenue San Diego, CA 92123-1233 Payment is due on the last business day of the month and shall be delinquent if not received in investable funds by 2 p.m. of the tenth business day of the following month. Delinquency charges are 1% of the total amount if paid within five business days of the delinquency, 2% thereafter. Reference San Diego County Water Authority Ordinance No. 2007-03 Revenue Collection Policy for a complete explanation of billing and payment for water deliveries. Generated Date: 01/10/2025 11:21 AM 19-6364 A Public Agency 4677 Overland Avenue, San Diego, California, 92123-1233 858) 522-6673 FAX (858) 522-6561 December 2024 Invoice Detail Billed to: San Diego, City of Mailed: 1/10/2025 Due Date: 2/14/2025 Invoice Number: 1224-15 Page 8 of 8 Service Address: 2797 Caminito Chollas San Diego, CA 92105- Page 234 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 57 - 6-12-26 4932-3639-7490 EXHIBIT I LIST OF ADMINISTRATIVE AGREEMENTS 1. Agreement Between City of San Diego and Participating Agencies in the Metropolitan Sewerage System for Unified Management of Industrial Waste Page 235 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 58 - 6-12-26 4932-3639-7490 EXHIBIT J SAMPLE FAB CALCULATION ILLUSTRATIVE EXAMPLE: FY 2024 AND POST FY 2027 FUNCTIONAL ALLOCATED BILLING (FAB) DISTRIBUTION OF METRO WASTEWATER SYSTEM TOTAL COSTS Page 236 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda TABLE A: EXAMPLE 2024 FAB DISTRIBUTION OF METRO WASTEWATER SYSTEM TOTAL COSTS OWNERSHIP AGENCY Pure Water Phase 1 Chula Vista $2,950,163 10%$1,312,269 8%$0 0%$2,709,139 11%$638,388 $1,641,933 12% Coronado $305,800 1%$203,680 1%$0 0%$256,267 1%$55,428 $161,744 1% Del Mar $0 0%$20,166 0%$0 0%$0 0%$0 $2,789 0% East Otay Mesa $287,774 1%$234,061 1%$0 0%$234,962 1%$55,427 $153,843 1% El Cajon $1,255,389 4%$1,345,963 8%$0 0%$1,498,185 6%$287,760 $69,733 0% Imperial Beach $398,023 1%$300,738 2%$0 0%$250,850 1%$63,881 $198,036 1% La Mesa $850,815 3%$1,606,991 10%$0 0%$572,743 2%$160,116 $396,205 3% Lakeside/Alpine $609,361 2%$112,258 1%$0 0%$514,773 2%$121,832 $21,464 0% Lemon Grove $386,273 1%$303,056 2%$0 0%$280,774 1%$72,899 $195,821 1% National City $748,405 3%$206,568 1%$0 0%$559,705 2%$152,221 $400,266 3% Otay $61,160 0%$38,273 0%$0 0%$120,737 0%$13,878 $64,182 0% Padre Dam $400,759 1%$439,621 3%$0 0%$1,051,084 4%$167,951 $62,343 0% Poway $499,097 2%$591,194 4%$0 0%$381,951 2%$84,300 $262,248 2% Spring Valley $1,002,862 3%$306,603 2%$0 0%$803,788 3%$191,022 $528,429 4% Wintergardens $142,827 0%$72,598 0%$0 0%$136,597 1%$27,243 $6,196 0% San Diego SD Wastewater $19,965,508 67%$9,152,721 56%$0 0%$15,953,330 63%$4,200,992 $9,869,977 70% SD Water $0 0%$0 0%$0 0%$0 0%$0 $0 0% Regional Sludge $0 0.00 $0 0.00 $0 0.00 $0 0.00 $0 Based on FY 2024 Metro System expenses as of last available data, March 20, 2025 2024 billed units based on Exhibit B & use estimates developed as part of FAB & SARA creation process. 2024 units do not represent the actual billed flows and loadings form FY 2024, but rather are the same as the 2027 units with the exception of the East County agencies and the City of San Diego whose billed units are assumed to change post-2027. Focus of the analysis is to compare the changes in bills due to the change in flows and loadings after 2027 as a result of San Diego and East County Pure Water programs EXHIBIT J - FY 2024 Page 237 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda USE AGENCY TOTAL % of Total Unit Cost $692,178 $0 $561 $120 Chula Vista $12,469,072 11%$0 0%$10,048,689 12%$4,565,526 12%36,335,178$ 11% Coronado $1,043,278 1%$0 0%$889,552 1%$324,301 1%3,240,049$ 1% Del Mar -$4,292 0%$0 0%-$3,496 0%-$1,108 0%14,059$ 0% East Otay Mesa $201,189 0%$0 0%$138,032 0%$65,154 0%1,370,441$ 0% El Cajon $5,822,210 5%$0 0%$5,252,268 6%$2,050,847 5%17,582,355$ 5% Imperial Beach $1,635,544 1%$0 0%$1,192,406 1%$504,382 1%4,543,860$ 1% La Mesa $3,243,976 3%$0 0%$1,500,928 2%$692,016 2%9,023,790$ 3% Lakeside/Alpine $2,558,395 2%$0 0%$1,883,109 2%$910,190 2%6,731,381$ 2% Lemon Grove $1,507,949 1%$0 0%$625,924 1%$303,769 1%3,676,465$ 1% National City $2,892,939 2%$0 0%$1,995,264 2%$973,714 3%7,929,082$ 2% Otay $202,861 0%$0 0%$463,478 1%$92,973 0%1,057,542$ 0% Padre Dam $1,925,768 2%$0 0%$3,117,893 4%$880,795 2%8,046,214$ 2% Poway $1,965,607 2%$0 0%$906,717 1%$435,731 1%5,126,846$ 2% Spring Valley $3,844,185 3%$0 0%$2,564,363 3%$1,202,187 3%10,443,439$ 3% Wintergardens $688,072 1%$0 0%$530,720 1%$246,761 1%1,851,013$ 1% SUBTOTAL $39,996,753 34%$0 0%$31,105,847 37%$13,247,238 34%116,971,715$ 35% San Diego SD Wastewater $78,078,006 66%$0 0%$52,296,287 63%$25,327,225 66%214,844,047$ 65% SD Water $0 0%$0 0%$0 0%$0 0%-$ 0% 65% Regional Sludge $0 0%$0 0%$0 0.00 $0 0.00 -$ 0% 100% Based on FY 2024 Metro System expenses as of last available data, March 20, 2025 2024 billed units based on Exhibit B & use estimates developed as part of FAB & SARA creation process. 2024 units do not represent the actual billed flows and loadings form FY 2024, but rather are the same as the 2027 units with the exception of the East County agencies and the City of San Diego whose billed units are assumed to change post-2027. Focus of the analysis is to compare the changes in bills due to the change in flows and loadings after 2027 as a result of San Diego and East County Pure Water programs EXHIBIT J - FY 2024 (CONTINUED) Page 238 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda TABLE C: EXAMPLE POST-2027 FAB DISTRIBUTION OF METRO WASTEWATER SYSTEM TOTAL COSTS OWNERSHIP AGENCY Pure Water Phase 1 Chula Vista $3,163,707 11%$1,326,405 8%$0 0%$3,056,672 12%$699,281 $1,641,933 12% Coronado $327,935 1%$205,874 1%$0 0%$289,141 1%$60,715 $161,744 1% Del Mar $0 0%$20,383 0%$0 0%$0 0%$0 $2,789 0% East Otay Mesa $308,604 1%$236,583 1%$0 0%$265,104 1%$60,714 $153,843 1% El Cajon $222,650 1%$1,354,134 8%$7,795 4%$303,984 1%$55,551 $69,733 0% Imperial Beach $426,833 1%$304,657 2%$0 0%$283,029 1%$69,974 $198,036 1% La Mesa $912,400 3%$1,623,623 10%$0 0%$646,216 3%$175,388 $396,205 3% Lakeside/Alpine $12,082 0%$113,467 1%$4,014 2%$32,945 0%$5,333 $21,464 0% Lemon Grove $414,233 1%$306,321 2%$0 0%$316,792 1%$79,852 $195,821 1% National City $802,577 3%$208,793 1%$0 0%$631,505 2%$166,740 $400,266 3% Otay $65,587 0%$38,685 0%$0 0%$136,226 1%$15,201 $64,182 0% Padre Dam $75,943 0%$444,357 3%$4,713 2%$87,485 0%$16,199 $62,343 0% Poway $535,224 2%$598,242 4%$0 0%$430,948 2%$92,341 $262,248 2% Spring Valley $990,708 3%$343,267 2%$0 0%$835,989 3%$192,882 $528,429 4% Wintergardens $3,452 0%$73,380 0%$1,036 1%$8,998 0%$1,456 $6,196 0% San Diego SD Wastewater $21,410,950 72%$9,251,313 56%$0 0%$17,999,850 71%$4,601,706 $9,869,977 70% SD Water $0 0%$0 0%$185,160 91%$0 0%$0 $0 0% Regional Sludge $0 0.00 $0 0.00 $0 0.00 $0 0.00 $0 Based on FY 2024 Metro System expenses as of last available data, March 20, 2025 2024 billed units based on Exhibit B & use estimates developed as part of FAB & SARA creation process. 2024 units do not represent the actual billed flows and loadings form FY 2024, but rather are the same as the 2027 units with the exception of the East County agencies and the City of San Diego whose billed units are assumed to change post-2027. Focus of the analysis is to compare the changes in bills due to the change in flows and loadings after 2027 as a result of San Diego and East County Pure Water programs EXHIBIT J - POST FY 2027 Page 239 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda USE AGENCY TOTAL % of Total Unit Cost $731,597 $194,605 $492 $120 Chula Vista $12,783,094 11%$0 0%$10,354,251 12%$4,398,500 11%37,423,843$ 11% Coronado $1,005,540 1%$0 0%$743,279 1%$289,814 1%3,084,041$ 1% Del Mar $0 0%$0 0%$0 0%$0 0%23,172$ 0% East Otay Mesa $206,276 0%$0 0%$148,557 0%$63,175 0%1,442,856$ 0% El Cajon $724,109 1%$58,382 4%$843,730 1%$284,766 1%3,924,834$ 1% Imperial Beach $1,706,929 1%$0 0%$948,898 1%$435,622 1%4,373,980$ 1% La Mesa $3,683,276 3%$0 0%$2,187,040 3%$1,102,207 3%10,726,356$ 3% Lakeside/Alpine $39,441 0%$31,137 2%$89,152 0%$26,555 0%375,590$ 0% Lemon Grove $1,358,771 1%$0 0%$871,176 1%$407,758 1%3,950,724$ 1% National City $3,061,864 3%$0 0%$2,019,790 2%$990,269 3%8,281,804$ 2% Otay $313,573 0%$0 0%$546,022 1%$113,139 0%1,292,615$ 0% Padre Dam $40,801 0%$35,029 3%$92,226 0%$27,471 0%886,568$ 0% Poway $1,886,688 2%$0 0%$1,273,560 2%$506,725 1%5,585,975$ 2% Spring Valley $3,301,611 3%$0 0%$2,334,121 3%$999,997 3%9,527,005$ 3% Wintergardens $14,632 0%$7,784 1%$31,974 0%$9,608 0%158,517$ 0% SUBTOTAL $30,126,604 26%$132,332 10%$22,483,777 27%$9,655,607 25%91,057,881$ 27% San Diego SD Wastewater $86,434,079 74%$0 0%$60,918,357 73%$28,918,856 75%239,405,089$ 72% SD Water $0 0%$1,167,632 90%$0 0%$0 0%1,352,792$ 0% 73% Regional Sludge $0 0%$0 0%$0 0.00 $0 0.00 -$ 0% 100% Based on FY 2024 Metro System expenses as of last available data, March 20, 2025 2024 billed units based on Exhibit B & use estimates developed as part of FAB & SARA creation process. 2024 units do not represent the actual billed flows and loadings form FY 2024, but rather are the same as the 2027 units with the exception of the East County agencies and the City of San Diego whose billed units are assumed to change post-2027. Focus of the analysis is to compare the changes in bills due to the change in flows and loadings after 2027 as a result of San Diego and East County Pure Water programs EXHIBIT J -POST FY 2027 (CONTINUED) Page 240 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 59 - 6-12-26 4932-3639-7490 EXHIBIT K EXHIBIT LIST A Metro Facilities (Electronic Exhibit); file name: 2025-10_Exhibit A Metro Facilities.aprx; time stamp of file: 10/23/2025 3:38 PM, software used to open and view file including version: ArcGIS B C Administrative Protocol on Allocation of Operating Reserves and Debt Service Coverage to Participating Agencies Notice Listing Methodology for Contract Capacity Transfers Metro System Flow Formulas and Sampling Locations Sample of Interest Calculation H Summary of Billings from County Water Authority Showing Costs for Untreated Water List of Administrative Agreements Sample FAB Calculation K Exhibit List Page 241 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda v . 0 0 5 P a g e | 1 January 20, 2026 ITEM TITLE WASTEWATER DISPOSAL AGREEMENT: APPROVAL OF THE SECOND AMENDED AND RESTATED REGIONAL WASTEWATER DISPOSAL AGREEMENT (SARA) AND METROPOLITAN SEWERAGE SYSTEM ADMINISTRATIVE AGREEMENT NO. 1 FOR UNIFIED MANAGEMENT OF INDUSTRIAL WASTE DISCHARGE PRETREATMENT AND ENHANCED SOURCE CONTROL PROGRAMS Report Number: 26-0004 Location: No specific geographic location Department: Engineering G.C. § 84308 Regulations Apply: No Recommended Action A. Adopt a resolution approving the Second Amended and Restated Regional Wastewater Disposal Agreement (SARA). B. Adopt a resolution approving the Metropolitan Sewerage System Administrative Agreement No. 1 for Unified Management of Industrial Waste Discharge Pretreatment and Enhanced Source Control Programs. SUMMARY On September 18, 2018, per Resolution 2018-187 the City of Chula Vista approved the Amended and Restated Regional Wastewater Disposal Agreement (the “ARA”). In an effort to address the outstanding items of the ARA, City of San Diego and Participating Agencies, including the City of Chula Vista wish to amend and restate the ARA as provided in the Second Amended Restated Regional Wastewater Agreement (SARA). Included in this action, the City of San Diego and the Participating Agencies (PA), including the City of Chula Vista agreed to negotiate certain costs relating to the Industrial Pretreatment and Source Control Program to be charged as Metro System Costs to City of San Diego and PA. Administrative Agreement No. 1 will formalize the agreement between City of San Diego and the PA for unified management of Industrial Waste Discharge Pretreatment and Enhanced Source Control Programs. ATTACHMENT 4 Page 242 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda P a g e | 2 ENVIRONMENTAL REVIEW The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a Project" as defined under Section 15378 of the State CEQA Guidelines because the agreement does not authorize any activity that will result in a physical change to the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is required. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not applicable DISCUSSION A. Second Amended Restated Regional Wastewater Agreement (SARA): The Point Loma Wastewater Treatment Plant (PLWTP) is a regional facility in the Metropolitan Sewerage System (Metro System) and is permitted to treat 240 million gallons per day (MGD) of regional wastewater to an Advanced Primary Level. Operated by the City of San Diego, the PLWTP was constructed in 1963 and is the backbone of the Metro System. The City of Chula Vista’s average of 1 6.7 MGD of wastewater is treated at PLWTP. The City of Chula Vista is one of 12 PAs that convey wastewater to the PLWTP for treatment. The Metro Wastewater Joint Powers Authority (Metro JPA) is a joint powers agency composed of the 12 local public PAs each having the authority to provide and contract for the conveyance, treatment, and disposal of wastewater. The Metro JPA represents over 800,000 sewer rate payers and provides more than $105M a year in contributions to the Metro System. The Metro JPA and the City of San Diego are partners in overseeing PLWTP. The Federal Clean Water Act, passed in 1972, required that all wastewater treatment plants be permitted with a National Pollutant Discharge Elimination System (NPDES) permit. The permitting process in California involves the Environmental Protection Agency, the Regional Water Quality Control Board, the State Water Resources Control Board and the California Coastal Commission. The Clean Water Act required wastewater treatment plants to treat wastewater to at least a secondary level. The actual treatment requirements varies depending on whether discharging to a lake, river or ocean as well as specific characteristics of the receiving water body. Several years after the Clean Water Act was enacted, it was amended to allow a modified permit (waiver of secondary treatment) if the discharger could demonstrate the safe discharge of wastewater to the receiving water. Initially, the City of San Diego applied for a modified permit for PLWTP, but later withdrew the application and began planning to convert PLWTP to secondary treatment. During this time, the window for applying for modified permits closed and the City of San Diego had not begun the construction to convert PLWTP. Subsequently, the EPA and several environmental groups sued the City of San Diego for not being at the secondary treatment level. In 1994, the Ocean Pollution Reduction Act (OPRA) was passed by the Federal government modifying the Clean Water Act. OPRA re-opened the window and gave the City of San Diego the opportunity again to apply for a modified permit for PLWTP. In return for support from the environmental community, the Page 243 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda P a g e | 3 City of San Diego agreed to construct facilities to provide 45 MGD of reclaimed water capacity. This resulted in the construction of the North City Water Reclamation Plant, the South Bay Water Reclamation Plant and the South Bay Ocean Outfall. The City of San Diego was granted the first modified permit for PLWTP in 1994. 1998 Agreement During this period there was a significant discontent between the City of San Diego and the PAs. The PAs felt that the City of San Diego was operating the Metro System and making large financial decisions without their input or consideration. The disputes led to the creation of the 1998 Regional Wastewater Disposal Agreement (Attachment #1 and 2) and the formation of the Metropolitan Wastewater Commission (Metro Commission). The City of San Diego and the PAs, 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 of San Diego and the PAs. The purposes of the 1998 Agreement were: (1) to replace the prior-existing sewage disposal agreements between the City of San Diego and the PAs; (2) to provide certain contract rights to capacity in the Metro System to the PAs; (3) to establish a mechanism to fund the planning, design, construction, operation and maintenance of the Metro System by the City and the PAs as necessary to provide hydraulic capacity, and to comply with applicable law and with generally accepted engineering practices; and(4) to es tablish a system of charges which allocates the costs of the planning, design and construction of such new wastewater conveyance, treatment and disposal facilities as necessary solely to provide for new capacity on a fair and equitable basis. Pure Water On April 29, 2014, the San Diego City Council approved the Pure Water San Diego program by adoption of Resolution No. R-308906, which approved and supported the City of San Diego’s efforts to develop an implementation strategy to offload wastewater flow from the Point Loma Wastewater Treatment Plant through implementation of potable reuse, resulting in effluent discharged to the Pacific Ocean being equivalent to what would be achieved by upgrading the Point Loma Wastewater Treatment Plant to a secondary treatment plant (secondary equivalency). The City of San Diego is implementing a phased, multi-year program designed to achieve compliance with the Clean Water Act and regionally produce up to 83 MGD of safe, reliable potable water using new, expanded, or modified facilities, some of which will include Metro System facilities, in order to achieve secondary equivalency at the Point Loma Wastewater Treatment Plant. The Pure Water Program will not only benefit the City of San Diego by producing repurified water, but also the PAs, and their wastewater customers, especially if secondary equivalency is recognized through federal legislation amending the Clean Water Act. Specifically, the implementation of the Pure Water Program will reduce wastewater discharges to the Point Loma Wastewater Treatment Plant, part of the Page 244 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda P a g e | 4 Metro System where a large portion of the PAs’ 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 of San Diego and the PAs will potentially avoid billions of dollars in unnecessary capital, financing, energy, and operating costs to upgrade the Point Loma plant to secondary treatment at full capacity. Avoiding such costs would result in significant savings for regional wastewater customers and achieve environmental benefits by reducing ocean discharge. Amended and Restated Regional Wastewater Disposal Agreement (ARA) Effective on or around August 22, 2021, the City of San Diego and the PAs, amended the 1998 Agreement by executing an Amended and Restated Regional Wastewater Disposal Agreement (the “ARA”) to address the costs and revenues associated with Phase 1 of the Pure Water Program, including specific cost allocations related to the construction, expansion, and/or modification of Metro System facilities and Water Repurification System facilities designed to produce up to 30 MGD of Repurified Water (“Phase 1”; Attachment #3 and 4). The ARA provided that within one year of its effective date, the Parties intended to meet and negotiate in good faith regarding one or more amendments to the ARA or to its Exhibits to address multiple outstanding items described in Section 2.9 of the ARA. Section 14.2 of the ARA provided that the Parties may amend the ARA by a written agreement between the City of San Diego and all PAs stating the Parties’ intent to amend or supplement the agreement. In an effort to address in good faith the outstanding items described in Section 2.9 of the ARA, and comprehensively and equitably address the costs, revenues, and billing system associated with the Pure Water Program and the related construction, expansion, and/or modification of Metro System facilities beyond Phase 1, the City of San Diego and PAs, including the City of Chula Vista wish to approve a second amendment and restate the ARA (SARA) as provided herein (Attachment #5). B. Administrative Agreement No. 1 The City of San Diego operates the Metro System, a regional wastewater system that collects, treats and disposes of wastewater generated from within City of San Diego boundaries and from within the service areas of the PAs, in accordance with NPDES Permit No. CA107409 and California Waste Discharge Requirements. The City of San Diego desires to carry out a uniform industrial waste disposal, pretreatment and enhanced source control program (“Industrial Pretreatment and Source Control Program,” as defined in Attachment 6) on behalf of itself and the PAs in the Metro System throughout the Metro System service area; and to help ensure that the City of San Diego can meet the requirements of its NPDES permits, including implementation of both indirect potable reuse under Phase 1 of Pure Water San Diego and a potential future direct potable reuse (“DPR”) program. The City of San Diego and the PAs determined that the centralized operation of an Industrial Pretreatment and Source Control Program provides certain General Benefits (as defined in Attachment 6) to all users of the Metro System. Absent an Industrial Pretreatment and Source Control Program providing these General Benefits, the increased costs would be incurred as general treatment and Page 245 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda P a g e | 5 disposal costs of the Metro System. Additionally, any PA with industrial users in their jurisdiction would also incur the costs of operating their own program. Pursuant to Government Code Sections 6502 and 6513, the PAs may delegate to the City of San Diego full authority to carry out a common Industrial Pretreatment and Source Control Program, on behalf of the City of San Diego and the PAs, which meets the requirements of federal and state law, including City of San Diego’s required permits, and is consistent with the Industrial Pretreatment and Source Control Program ordinances enacted by the City of San Diego and each PA, as amended from time to time. Pursuant to such delegation, the City of San Diego may issue industrial user permits or discharge authorizations to Industrial Users, levy and collect industrial waste discharge, pretreatment, and permitting fees, fines and penalties, and recover other costs of monitoring and enforcement from industrial and other users discharging to the Metro System on behalf of the PAs. The City of San Diego and the PAs must ensure that all Industrial Users within the Metro System are regulated under an effective Industrial Pretreatment and Source Control Program that conforms to all applicable laws, rules and regulations. Previously, the City of San Diego and the PAs individually entered into individual “Interjurisdictional Pretreatment Agreements” under which the PAs agreed to adopt and diligently enforce an ordinance which conforms to the minimum legal requirements contained in the Federal Pretreatment Regulations and other provisions of Federal and California law, including carrying out an Industrial Pretreatment Program and complying with all NPDES and waste discharge requirements issued to each PA. Currently, the costs related to the industrial discharges inspection, monitoring, and enforcement program within the City of San Diego’s boundaries, including related administrative and laboratory costs, are excluded from the amounts charged by the City of San Diego as Metro System Costs to City of San Diego and the PAs pursuant to section 5.2.1.2.3 of the Amended and Restated Regional Wastewater Disposal Agreement (“ARA” as defined further herein). The City of San Diego and the PAs agreed, pursuant to section 2.9.1.3 of the ARA, to negotiate in good faith to allow certain costs relating to the Industrial Pretreatment and Source Control Program to be charged as Metro System Costs to City of San Diego and PAs in recognition of the General Benefits that the program provides to the Metro System. Based on the above, the PAs agree to delegate the City of San Diego, as the agent of each PA, and the City of San Diego agrees to accept, the authority and responsibility for diligently inspecting, monitoring and enforcing the City of San Diego’s Industrial Pretreatment and Source Control Program ordinances on behalf of the PAs within their respective boundaries through administrative or legal proceedings, with the PAs working in coordination with the City of San Diego as necessary in enforcement efforts. The City of San Diego shall not be responsible for, and does not accept authority or responsibility to inspect, monitor or enforce any source control program requirements for any PA’s NPDES permits. The City of San Diego and the PA intend for all costs relating to the Industrial Pretreatment and Source Control Program be recovered, to the maximum extent permissible by law, through fees, costs, charges, Page 246 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda P a g e | 6 and fines billed directly to Industrial Users subject to the Industrial Pretreatment and Source Control Program, and for such fees, costs, charges, and fines to be reviewed and updated periodically to ensure maximum cost recovery. These costs include, but are not limited to, costs of permitting, inspection, compliance monitoring, setting of Local Limits, source control, and enforcement. DECISION-MAKER CONFLICT Staff has reviewed Councilmembers’ property holdings and has determined that the effect of the decision contemplated by this action on public officials’ interest in real property would also affect 10% or more of all property owners in the public officials’ jurisdiction, or 5,000 property owners in the jurisdiction of the officials’ agency, in substantially the same manner. Therefore, pursuant to California Code of Regulations (§18707, §18707.1), the Public Generally Exception applies. Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. CURRENT-YEAR FISCAL IMPACT The City’s sewer enterprise fund is self-supporting and funds the operations, maintenance, repair, and rehabilitation and expansion of the system, and treatment. The utility is primarily supported by user fees, which provide a sustainable annual funding source. The current rate plan generates sufficient revenue to fund the financial obligations for wastewater service and equitably recover costs from customers. The current rate plan expires on June 30, 2026, and will be updated to incorporate the pro-rata share of the Pure Water Program costs as determined by the Metro JPA. ONGOING FISCAL IMPACT The five-year financial plan adopted by the City Council for the period of FY 21/22 through FY25/26 was developed using a robust and dynamic cash flow model that mirrors the utility’s accounting and operations. The model did contemplate potential changes in operating costs – specifically, increases in treatment costs related to the upgrade of City of San Diego’s Point Loma Wastewater Treatment Plant (PLWTP). In FY25/26, the Engineering & Capital Projects Department will embark on an updated sewer rate report that will be completed in time for the July 1, 2026 deadline to adopt a new sewer rate. ATTACHMENTS Reso A – Second Amended & Restated Agreement Reso B – Administrative Agreement No. 1 1. Regional Disposal Agreement 2. Council Resolution #18968 3. Amended And Restated Regional Wastewater Disposal Agreement (ARA). 4. Council Resolution #2018-187 5. Draft Second Amended and Restated Regional Wastewater Disposal Agreement 6. Draft Administrative Agreement No. 1 Staff Contacts: Eddie Flores, Assistant Director of Engineering and Capital Projects Patrick Moneda, Principal Civil Engineer Michael Benoza, Senior Civil Engineer Page 247 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda v . 0 0 5 P a g e | 1 September 1, 2026 ITEM TITLE Grant Acceptance and Appropriation: Accept $97,589 from the Department of Alcoholic Beverage Control and Amend the Fiscal Year 2026-27 Adopted Budget by Appropriating the Grant Funds Report Number: 26-0273 Location: No specific geographic location Department: Police G.C. § 84308 Regulations Apply: No Environmental Notice: The activity is not a “Project” as defined under section 15378 of the California Environmental Quality Act (“CEQA”) State Guidelines. Therefore, pursuant to State Guidelines section 15060(c)(3) no environmental review is required. Recommended Action Adopt a resolution approving an agreement and accepting $97,589 in grant funds from the Department of Alcoholic Beverage Control to be used for the Alcohol Policing Partnership Program and amending the Fiscal Year 2026-27 budget to appropriate funds to the Police Grants Section of the State Grants Fund for the Alcohol Policing Partnership Program. (4/5 Vote Required) SUMMARY The California Department of Alcoholic Beverage Control has awarded $97,589 to the Police Department for the Alcohol Policing Partnership Program. The mission of the Alcohol Policing Partnership Program is to work with law enforcement agencies to develop an effective, comprehensive, and strategic approach to eliminating the crime and public nuisance problems associated with problem alcoholic beverage outlets. The focus of this effort is to target ABC-licensed vendors and individuals who furnish alcoholic beverages to underage operators. The goal is to reduce underage drinking and resultant DUI driving injuries and fatalities, property damage and youth access to alcoholic beverages. ENVIRONMENTAL REVIEW The proposed activity has been reviewed for compliance with the California Environmental Quality Act (CEQA) and it has been determined that the activity is not a “Project” as defined under section 15378 of the Page 248 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda P a g e | 2 State CEQA Guidelines because it will not result in a physical change in the environment. Therefore, pursuant to section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not applicable. DISCUSSION The Police Department has been awarded $97,589 from the Department of Alcoholic Beverage Control (“ABC”) to conduct compliance, education, and enforcement operations for the Alcohol Policing Partnership program. This 12-month program (July 1, 2026 to June 30, 2027) will include undercover enforcement operations at problem locations, Minor Decoy operations, Shoulder Tap operations, undercover minor in possession operations at the Amphitheater concert venue, and Informed Merchants Preventing Alcohol- Related Crime Tendencies (“IMPACT”) operations. Minor Decoy operations are designed to educate and deter licensed locations from selling/furnishing alcohol to minors. Shoulder Tap operations are used to detect and deter adults who furnish alcoholic beverages to minors. The primary goal of IMPACT operations is to educate licensees on alcohol-related laws to help reduce alcohol-related crime in and around licensed premises. As part of the grant acceptance process, ABC provided its standard agreement (Attachment 1). The proposed resolution would accept the grant funds and appropriate the grant funds accordingly. DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the real property holdings of the City Council members do not create a disqualifying real property-related financial conflict of interest under the Political Reform Act. (Gov. Code, § 87100, et seq.) Staff is not independently aware and has not been informed by any City Council member of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter. CURRENT-YEAR FISCAL IMPACT Approval of this resolution accepts $97,589 in grant funds from the California Department of Alcoholic Beverage Control and amends the fiscal year 2026-27 budget by appropriating $89,589 to the Personnel Services category and $8,000 to the Supplies and Services category of the Police Grants Section of the State Grants Fund, resulting in no fiscal impact to the General Fund. ONGOING FISCAL IMPACT There is no ongoing fiscal impact as a result of this action. ATTACHMENTS 1. State of California – Department of General Services Standard Agreement Staff Contact: Acting Chief of Police Dan Peak Police Administrative Services Manager Jonathan Alegre Page 249 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING GRANT FUNDS FROM THE DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL FOR THE ALCOHOL POLICING PARTNERSHIP PROGRAM WHEREAS, the City of Chula Vista, through the Chula Vista Police Department, has received notice of a grant award in the amount of $97,589 (“Grant Funds”) from the Department of Alcoholic Beverage Control (“ABC”); and WHEREAS, the Grant Funds will be used to conduct compliance, education, and enforcement operations for the Alcohol Policing Partnership program (“Program”), in accordance with Program goals and objectives established by ABC; and WHEREAS, the Program establishes a grant-funded framework through which local law enforcement agencies develop and implement an effective, comprehensive, and strategic approach to reduce underage access to alcohol and address alcohol-related crime and public nuisance problems associated with problematic alcoholic beverage outlets through education, inspections, and targeted enforcement activities; and WHEREAS, the Grant Funds will completely offset the total costs of this Program. NOW, THEREFORE, BE IT RESOLVED b y the City Council of the City of Chula Vista, that it approves the State of California Standard Agreement No. 26-APP04, between the City and the Department of Alcoholic Beverage Control, in the form presented, with such minor modifications as may be required or approved by the City Attorney, a copy of which shall be kept on file in the Office of the City Clerk, and authorizes and directs the City Manager to execute same. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it accepts grant funds in the amount of $97,589 from the Department of Alcoholic Beverage Control and appropriates $89,589 to the Personnel Services category and $8,000 to the Supplies and Services category of the Police Grants Section of the State Grants Fund for the Alcohol Policing Partnership Program. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the City Manager is hereby authorized to execute in the name of the City of Chula Vista all additional grant documents, including but not limited to amendments, agreements, and requests for payment, necessary to secure, implement the Program, and comply with the grant requirements, in such form as may be required or approved by the City Attorney. Page 250 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Resolution No. Page 2 Presented by Approved as to form by Tiffany Allen Marco A. Verdugo City Manager City Attorney Page 251 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 252 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Agreement Number: 26-APP04 City of Chula Vis ta through the Chula V ista Police Department Page 1 of 3 EXHIBIT A SCOPE OF WORK I. SCOPE OF WORK • Contractor agrees to implement the Department of Alcoholic Beverage Control (ABC), Alcohol Policing Partnership program. This program is intended to work with law enforcement agencies to develop an effective, comprehensive and strategic approach to eliminate the crime and public nuisance problems associated with problem alcoholic beverage outlets. • Contractor agrees to implement ABC’s Minor Decoy, Shoulder Tap Programs and conduct Informed Merchants Preventing Alcohol-Related Crime Tendencies (IMPACT) Inspections. These programs target both ABC licensed premises and individuals who furnish alcoholic beverages to the underage operators. The project is targeted to reduce underage drinking and the resultant DUI driving injuries and fatalities, and/or property damages, reduce youth access to alcoholic beverages through the education of licensee(s), enforcement intervention and the impressions of omnipresence of law enforcement. In addition, Contractor agrees to the following goals: 1. The operation period of the grant is July 1, 2026 through June 30, 2027. 2. Contractor agrees to raise public awareness that selling, serving and/or furnishing alcoholic beverages to individuals under twenty-one years old is a criminal violation that will be prosecuted by local city and district attorneys. 3. Minor Decoy operations are designed to educate and deter licensed locations from selling/furnishing alcohol to minors. Contractor agrees to conduct Minor Decoy Operations at both “On-Sale” and “Off-Sale” licensed establishments within the operation period of the grant. 4. Shoulder Tap operations are used to detect and deter adult furnishers outside of a licensed business. Contractor agrees to conduct Shoulder Tap Operations at “Off-Sale” licensed locations to apprehend adults that are unaffiliated with the licensed businesses and who are purchasing alcohol for minors outside of the stores within the operation period of the grant. 5. Informed Merchants Preventing Alcohol-Related Crime Tendencies (IMPACT) primary goal is to educate licensees on alcohol related laws to help reduce alcohol-related crime in and around licensed premises. Contractor agrees to conduct visits and inspections of licensed premises identifying areas of non-compliance at “On-Sale” and “Off-Sale” licensed locations within the operation period of the grant. Page 253 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Agreement Number: 26-APP04 City of Chula Vis ta through the Chula V ista Police Department Page 2 of 3 II. GOALS AND OBJECTIVES 1. Conduct at least five (5) Minor Decoy operations. 2. Conduct at least five (5) Shoulder tap operations, including the Statewide Shoulder tap operation. 3. Conduct at least five (5) IMPACT operations. 4. Conduct at least five (5) Undercover operations. 5. Conduct at least three (3) Amphitheater operations. 6. Conduct at least three (3) alcohol awareness educational programs at local schools within the Clovis Unified School District. 7. Provide press/social media releases on grant enforcement activities. A. To announce the start of the program; B. At the conclusion of each Minor Decoy Operation has been held (to announce the number of licensed premises who sold to the minor decoy) C. At the conclusion of each Shoulder Tap Operation has been held (to announce the number of adults arrested for purchasing alcoholic beverages for the decoy). 8. Contractor will fax (916) 419-2599 or email each press release to the Department’s Public Information Officer (pio@abc.ca.gov) as soon as it is released. 9. Contractor agrees in all press releases, in addition to any credits the agency wishes to give, will include the following statement: “This project is part of the Department of Alcoholic Beverage Control’s Alcohol Policing Partnership.” Contractor agrees to complete and submit monthly reports on a format designed and provided by the Department of Alcoholic Beverage Control due no later than 15th of the following month. III. PROJECT REPRESENTATIVES The project representatives during the term of this agreement will be: Matt DeRosier, Detective 315 Fourth Avenue Chula Vista, CA 91910 (619) 691-5467 Jennifer Delarosa , Supervising Agent in Charge 3927 Lennane Drive, Suite 100 Sacramento, CA 95834 jennifer.delarosa@abc.ca.gov Page 254 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Agreement Number: 26-APP04 City of Chula Vis ta through the Chula V ista Police Department Page 3 of 3 Direct all fisca l inquiries to: Jorge Medina, Management Analyst II 315 Fourth Avenue Chula Vista, CA 91910 (619) 691-5467 Kristine Okino, Grant Coordinator 3927 Lennane Drive, Suite 100 Sacramento, CA 95834 (916) 312-4349 Page 255 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Agreement Number: 26-APP04 City of Chula Vis ta through the Chula V ista Police Department Page 1 of 3 EXHIBIT B BUDGET DETAIL AND PAYMENT PROVISIONS I. INVOICING AND PAYMENT • For services satisfactorily rendered and upon receipt and approval of the invoice, the Department of Alcoholic Beverage Control agrees to pay a monthly payment of approved reimbursable costs per the Budget Detail of personnel overtime and benefits (actual cost) and/or allowable costs . • Invoices shall clearly reference this contract number (26-APP04) and must not exceed the contract total authorized amount of $97,589.00. Invoices are to be submitted by the 15th of every month, on the prescribed form designed by the Department of Alcoholic Beverage Control. Submit to: Department of Alcoholic Beverage Control Attn: Kristine Okino , Grant Coordinator 3927 Lennane Drive Sacramento, California 95834 • Payment shall be made in arrears within 30 days from the receipt of an undisputed invoice. Nothing contained herein shall prohibit advance payments as authorized by Item 2100-101- 3036, Budget Act, Statues of 202 6. • Contractor understands in order to be eligible for reimbursement; cost must be incurred on or after the effective date of the project, July 1, 202 6 and on or before the project termination date, June 30, 2027 . • Revisions to the “Scope of Work” and the “Budget Detail” may be requested by a change request letter submitted by the Contractor. If approved, the revised Grant Scope of Work and/or Budget Detail supersedes and replaces the previous grant and will initiate an amendment. No revisions can exceed allotted amount as shown on the Budget Detail. The total amount of the grant must remain unchanged. • Contractor agrees to refund to the State any amounts claimed for reimbursement and paid to Contractor which ar e later disallowed by the State after audit or inspection of records maintained by the Contractor. • Only the costs displayed in the Budget Detail are authorized for reimbursement by the State to Contractor under this agreement. Any other costs incurred by Contractor in the performance of this agreement are the sole responsibility of Contractor. • Prior approval by the State in writing is required for the location, costs, dates, agenda, instructors, instructional materials, and attendees at any reimbursable training seminar, workshop or conference, and over any reimbursable publicity or educational materials to be made available for distribution. Contractors are required to acknowledge the support of the State whenever publicizing the work under this grant in any media. Page 256 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Agreement Number: 26-APP04 City of Chula Vista through the Chula Vista Police Department Page 2 of 3 II. BUDGET DETAIL COST CATEGORY TOTAL COST A. Personnel Services Overtime Officer $61,412.00 Agent $12,675.00 Sergeant $14,222.00 Benefits – 1.45% $1,280.00 TOTAL Personnel $89,589.00 B. Operating Expenses (receipts required) Buy Money $2,500.00 TOTAL Operating $2,500.00 C. Equipment (receipts required, must be purchased by 12/31) Surveillance Equipment (pre-approval required) $2,500.00 TOTAL Equipment $2,500.00 D. Travel Costs Registration, hotel and per diem $3,000.00 TOTAL Travel $3,000.00 GRANT TOTAL $97,589.00 Page 257 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Agreement Number: 26-APP04 City of Chula Vis ta through the Chula V ista Police Department Page 3 of 3 III. BUDGET CONTINGENCY CLAUSE • It is mutually agreed that if the Budget Act of the current year and/or any subsequent years covered under this Agreement does not appropriate sufficient funds for the program, this Agreement shall be of no further force and effect. In this event, the State shall have no liability to pay any funds whatsoever to Contractor or to furnish any other considerations under this Agreement and Contractor shall not be obligated to perform any provisions of this Agreement. • If funding for any fiscal year is reduced or deleted by the Budget Act for purposes of this program, the State shall have the option to either cancel this Agreement with no liability occurring to the State, or offer an agreement amendment to Contractor to reflect the reduced amount. IV. PROMPT PAYMENT CLAUSE • Payment will be made in accordance with, and within the time specified in, Government Code Chapter 4.5, commencing with Section 927. Page 258 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Agreement Number: 26-APP04 City of Chula Vis ta through the Chula V ista Police Department Page 1 of 5 General Terms and Conditions (GTC 02/2025) EXHIBIT C 1. APPROVAL: This Agreement is of no force or effect until signed by both parties and approved by the Department of General Services, if required. Contractor may not commence performance until such approval has been obtained. 2. AMENDMENT: No amendment or variation of the terms of this Agreement shall be valid unless made in writing, signed by the parties and approved as required. No oral understanding or Agreement not incorporated in the Agreement is binding on any of the parties. 3. ASSIGNMENT: This Agreement is not assignable by the Contractor, either in whole or in part, without the consent of the State in the form of a formal written amendment. 4. AUDIT: Contractor agrees that the awarding department, the Department of General Services, the Bureau of State Audits, or their designated representative shall have the right to review and to copy any records and supporting documentation pertaining to the performance of this Agreement. Contractor agrees to maintain such records for possible audit for a minimum of three (3) years after final payment, unless a lo nger period of records retention is stipulated. Contractor agrees to allow the auditor(s) access to such records during normal business hours and to allow interviews of any employees who might reasonably have information related to such records. Further, Contractor agrees to include a similar right of the State to audit records and interview staff in any subcontract related to performance of this Agreement. (Gov. Code §8546.7, Pub. Contract Code §10115 et seq., CCR Title 2, Section 1896). 5. INDEMNIFICATION: Contractor agrees to indemnify, defend and save harmless the State, its officers, agents and employees from any and all claims and losses accruing or resulting to any and all contractors, subcontractors, suppliers, laborers, and any other person, firm or corporation furnishing or supplying work services, materials, or supplies in connection with the performance of this Agreement, and from any and all claims and losses accruing or resulting to any person, firm or corporation who may be injured or damaged by Contractor in the performance of this Agreement. 6. DISPUTES: Contractor shall continue with the responsibilities under this Agreement during any dispute. 7. TERMINATION FOR CAUSE: The State may terminate this Agreement and be relieved of any payments should the Contractor fail to perform the requirements of this Agreement at the time and in the manner herein provided. In the event of such termination the State may proceed with the work in any manner deemed proper by the State. All costs to the State shall be deducted from any sum due the Contractor under this Agreement and the balance, if any, shall be aid to the Contractor upon demand. 8. INDEPENDENT CONTRACTOR: Contractor, and the agents and employees of Contractor, in the performance of this Agreement, shall act in an independent capacity and not as officers or employees or agents of the State. Page 259 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Agreement Number: 26-APP04 City of Chula Vis ta through the Chula V ista Police Department Page 2 of 5 9. RECYCLING CERTIFICATION: The Contractor shall certify in writing under penalty of perjury, the minimum, if not exact, percentage of post-consumer material as defined in the Public Contract Code Section 12200, in products, materials, goods, or supplies offered or sold to the State regardless of whether the product meets the requirements of Public Contract Code Section 12209. With respect to printer or duplication cartridges that comply with the requirements of Section 12156(e), the certification required by this subdivision shall specify that the cartridges so comply (Pub. Contract Code §12205). 10. NON-DISCRIMINATION CLAUSE: During the performance of this Agreement, Contractor and its subcontractors shall not deny the contract’s benefits to any person on the basis of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status, nor shall they discriminate unlawfully against any employee or applicant for employment because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status. Contractor shall insure that the evaluation and treatment of employees and applicants for employment are free of such discrimination. Contractor and subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code §12900 et seq.), the regulations promulgated thereunder (Cal. Code Regs., tit. 2, §11000 et seq.), the provisions of Article 9.5, Chapter 1, Part 1, Division 3, Title 2 of the Government Code (Gov. Code §§11135-11139.5), and the regulations or standards adopted by the awarding state agency to implement such article. Contractor shall permit access by representatives of the Department of Fair Employment and Housing and the awarding state agency upon reasonable notice at any time during the normal business hours, but in no case less than 24 hours’ notice, to such of its books, records, accounts, and all other sources of information and its facilities as said Department or Agency shall require to ascertain compliance with this clause. Contractor and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement. (See Cal. Code Regs., tit. 2, §11105.) Contractor shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under the Agreement. 11. CERTIFICATION CLAUSES: The CONTRACTOR CERTIFICATION CLAUSES contained in the document CCC 04/2017 are hereby incorporated by reference and made a part of this Agreement by this reference as if attached hereto. 12. TIMELINESS: Time is of the essence in this Agreement. 13. COMPENSATION: The consideration to be paid Contractor, as provided herein, shall be in compensation for all of Contractor's expenses incurred in the performance hereof, including travel, per diem, and taxes, unless otherwise expressly so provided. 14. GOVERNING LAW: This contract is governed by and shall be interpreted in accordance with the laws of the State of California. 15. ANTITRUST CLAIMS: The Contractor by signing this agreement hereby certifies that if these services or goods are obtained by means of a competitive bid, the Contractor shall comply with the requirements of the Government Codes Sections set out below. Page 260 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Agreement Number: 26-APP04 City of Chula Vis ta through the Chula V ista Police Department Page 3 of 5 a. The Government Code Chapter on Antitrust claims contains the following definitions: 1) "Public purchase" means purchase by means of competitive bids of goods, services, or materials by the State or any of its political subdivisions or public agencies on whose behalf the Attorney General may bring an action pursuant to subdivision (c) of Section 16750 of the Business and Professions Code. 2) "Public purchasing body" means the State or the subdivision or agency making a public purchase. Government Code Section 4550. b. In submitting a bid to a public purchasing body, the bidder offers and agrees that if the bid is accepted, it will assign to the purchasing body all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec.15) or under the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code),arising from purchases of goods, materials, or services by the bidder for sale to the purchasing body pursuant to the bid. Such assignment shall be made and become effective at the time the purchasing body tenders final payment to the bidder. Government Code Section4552. c. If an awarding body or public purchasing body receives, either through judgment or settlement, a monetary recovery for a cause of action assigned under this chapter, the assignor shall be entitled to receive reimbursement for actual legal costs incurred and may, upon demand, recover from the public body any portion of the recovery, including treble damages, attributable to overcharges that were paid by the assign or but were not paid by the public body as part of the bid price, less the expenses incurred in obtaining that portion of the recovery. Government Code Section4553. d. Upon demand in writing by the assignor, the assignee shall, within one year from such demand, reassign the cause of action assigned under this part if the assign or has been or may have been injured by the violation of law for which the cause of action arose and (a)the assignee has not been injured thereby, or (b) the assignee declines to file a court action for the cause of action. See Government Code Section4554. 16. CHILD SUPPORT COMPLIANCE ACT: For any Agreement in excess of $100,000, the contractor acknowledges in accordance with Public Contract Code 7110, that: a. The contractor recognizes the importance of child and family support obligations and shall fully comply with all applicable state and federal laws relating to child and family support enforcement, including, but not limited to, disclosure of information and compliance with earnings assignment orders, as provided in Chapter 8 (commencing with section 5200) of Part 5 of Division 9 of the Family Code; and b. The contractor, to the best of its knowledge is fully complying with the earnings assignment orders of all employees and is providing the names of all new employees to the New Hire Registry maintained by the California Employment Development Department. Page 261 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Agreement Number: 26-APP04 City of Chula Vis ta through the Chula V ista Police Department Page 4 of 5 17. UNENFORCEABLE PROVISION: In the event that any provision of this Agreement is unenforceable or held to be unenforceable, then the parties agree that all other provisions of this Agreement have force and effect and shall not be affected thereby. 18. PRIORITY HIRING CONSIDERATIONS: If this Contract includes services in excess of $200,000, the Contractor shall give priority consideration in filling vacancies in positions funded by the Contract to qualified recipients of aid under Welfare and Institutions Code Section 11200 in accordance with Pub. Contract Code §10353. 19. SMALL BUSINESS PARTICIPATION AND DVBE PARTICIPATION REPORTING REQUIREMENTS: a. If for this Contract Contractor made a commitment to achieve small business participation, then Contractor must within 60 days of receiving final payment under this Contract (or within such other time period as may be specified elsewhere in this Contract) report to the awarding department the actual percentage of small business participation that was achieved. (Govt. Code § 14841.) b. If for this Contract Contractor made a commitment to achieve disabled veteran business enterprise (DVBE) participation, then Contractor must within 60 days of receiving final payment under this Contract (or within such other time period as may be specified elsewhere in this Contract) certify in a report to the awarding department: (1) the total amount the prime Contractor received under the Contract; (2) the name and address of the DVBE(s) that participated in the performance of the Contract; (3) the amount each DVBE received from the prime Contractor; (4) that all payments under the Contract have been made to the DVBE; and (5) the actual percentage of DVBE participation that was achieved. A person or entity that knowingly provides false information shall be subject to a civil penalty for each violation. (Mil. & Vets. Code § 999.5(d); Govt. Code § 14841.) 20. LOSS LEADER: If this contract involves the furnishing of equipment, materials, or supplies then the following statement is incorporated: It is unlawful for any person engaged in business within this state to sell or use any article or product as a “loss leader” as defined in Section 17030 of the Business and Professions Code. (PCC 10344(e).) 21. GENERATIVE AI DISCLOSURE OBLIGATIONS: a. The following terms are in addition to the defined terms and shall apply to the Contract: 1) “Generative AI (GenAI)” means an artificial intelligence system that can generate derived synthetic content, including text, images, video, and audio that emulates the structure and characteristics of the system's training data. (Gov. Code § 11549.64.) b. Contractor shall immediately notify the State in writing if it: (1) intends to provide GenAI as a deliverable to the State; or (2), intends to utilize GenAI, including GenAI from third parties, to complete all or a portion of any deliverable that materially impacts: (i) functionality of a State system, (ii) risk to the State, or (iii) Contract performance. For avoidance of doubt, the term “materially impacts” shall have the meaning set forth in State Administrative Manual (SAM) § 4986.2 Definitions for GenAI. Page 262 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Agreement Number: 26-APP04 City of Chula Vis ta through the Chula V ista Police Department Page 5 of 5 c. Notification shall be provided to the State designee identified in this Contract. d. At the direction of the State, Contractor shall discontinue the provision to the State of any previously unreported GenAI that results in a material impact to the functionality of the System, risk to the State, or Contract performance, as determined by the State. e. If the use of previously undisclosed GenAI is approved by the State, then Contractor will update the Deliverable description, and the Parties will amend the Contract accordingly, which may include incorporating the GenAI Special Provisions into the Contract, at no additional cost to the State. f. The State, at its sole discretion, may consider Contractor’s failure to disclose or discontinue the provision or use of GenAI as described above, to constitute a material breach of Contract when such failure results in a material impact to the functionality of the System, risk to the State, or Contract performance. The State is entitled to seek any and all remedies available to it under law as a result of such breach, including but not limited to termination of the contract. Page 263 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Agreement Number: 26-APP04 City of Chula Vis ta through the Chula V ista Police Department Page 1 of 1 EXHIBIT D SPECIAL TERMS AND CONDITIONS 1. Disputes: Any disputes concerning a question of fact arising under this contract which is not disposed of by agreement shall be decided by the Director, Department of Alcoholic Beverage Control, or designee, who shall reduce his decision in writing and mail or otherwise furnish a copy thereof to the Contractor. The decision of the Department shall be final and conclusive unless, within 30 days from the date of receipt of such copy, the Contractor mails or otherwise furnishes to the State a written appeal addressed to the Director of the Department of Alcoholic Beverage Control. The decision of the Director of Alcoholic Beverage Control or his duly authorized representative for the determination of such appeals shall be final and conclusive unless determined by a court of competent jurisdiction to have been fraudulent, capricious, arbitrary, or so grossly erroneous as necessarily to imply bad faith, or not supported by substantial evidence. In connection with any appeal proceeding under this clause, the contractor shall be afforded an opportunity to be heard and to offer evidence in support of its appeal. Pending final decision of a dispute hereunder, Contractor shall proceed diligently with the performance of the contract and in accordance with the decision of the State. 2. Cancellation/Termination: This agreement may be cancelled or terminated without cause by either party by giving thirty (30) calendar days advance written notice to the other party. Such notification shall state the effective date of termination or cancellation and include any final performance and/or payment/invoicing instructions/requirements. No penalty shall accrue to either party because of contract termination. 3. Contract Validity: This contract is valid and enforceable only if adequate funds are appropriated in Item 2100-101-3036, Budget Act of 2026, for the purposes of this program. 4. Contractor Certifications: By signing this agreement, Contractor certifies compliance with the provisions of CCC 04/2017, Standard Contractor Certification Clauses. This document may be viewed at: https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of- Legal-Services-Resources-List-Fo lder/Standard -Contract-Language 5. If the State determines that the grant project is not achieving its goals and objectives on schedule, funding may be reduced by the State to reflect this lower level of project activity and/or cancel the agreement. Page 264 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Micheal Inzunza did you get a Psychological Evaluations? Regarding the racist incident against a little Black Kid that as per the press you call him a PUNK That Resulted on you getting Suspends then placed on leave and NEVER EVER Rehire The link is below https://1drv.ms/b/c/8dcf48c141ff159a/IQBNmNjLN_IuRqHlwUfZ6hcAARWPSObp-zRnYYW2vDuIIo0 Yes, Micheal Inzunza You should be evaluated along with all those who side with you or you have call them part of your team You ALL know who you are You are Since you like calling and chasing the Prass for interviews Did you Micheal Inzunza Inform the press about that Racist incident? Yes, Micheal Inzunza, I have seen you chasing the press like a kid after an Ice-cream truck) Written Communications - Acosta - Received 08_28_26 Page 265 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda •After Micheal Inzunza •racist incident against A little Black Kid at Mater Dei Catholic High School in Chula Vista •That resulted for Inzunza to be suspended, placed on leave and NEVER REHIRE •Should not be Welcome or allowed to attend or participate in any Community Event Link to Legal Document • •https://1drv.ms/b/c/8dcf48c141ff159a/IQBNmNjLN_IuRqHlwUfZ 6hcAARWPSObp-zRnYYW2vDuIIo0 Page 266 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 267 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 268 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda NATIONAL SECURITY SEPTEMBER 26, 20194:27 PM ET Michel Inzunza, You suspended an African American Kid and called him a PUNK because of his hair. Then you pose for picture with Students displaying a White Supremacy sign is that what you permit and teach the young minds? Let me remind you, “you are Mexican American” Page 269 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda From where I was sitting, it seemed almost comical to watch Michael Inzunza almost running like running after an ICE CREAM TRUCK to touch Imperial Beach Mayor Mitch McKay. Michael Inzunza, I might have informed Mayor Mitch McKay that you lied to me, and that I do not trust you and about the racist incident. I also may have inform him that you misled a group of us during a Veterans Day event by claiming to be part of a military family when you are not. You may want to ask him whether I mentioned this while we were outside City Hall. Mayor Mitch McKay is part of a military family his father is a Navy veteran. That is different from claiming military family status based on Peace Corps service, which is not a branch of the military. Shame on you, Michael Inzunza. Written Communications - Acosta - Received 08_28_26 Page 270 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda In my view, the question is not whether another troubling incident involving Councilmember Inzunza will occur, but when What concerns me is the continued silence of those elected and paid to represent Chula Vista. Their failure to address this conduct, and what many residents view as a misuse of public office, allows the pattern to continue unchecked. Why is such behavior tolerated without any meaningful accountability or consequence? If public funding is available to support the well-being of our officials, I would encourage Council member Inzunza, along with his team and associates, to make use of those resources. Written Communications - Acosta - Received 08_28_26 Page 271 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda ! Inzunza your behavior is unprofessional. Why did you go outside to Confront and quarrel with an elderly? While appearing aggressive It seems to me that you are a BULLY! Inzunza Your hand gestures could be interpreted as intimidation to an Elderly person INZUNZA SHAME ON YOU Page 272 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda If you other 3 know your district, then you should recognize this Park Unless you were sitting in a cool Place having your Cafecito Shame on you 4 take care of the city Jose, you Voted to Bring Imperial Beach Unsheltered to Chula Vista when you can Not solve the Problem in you district This at corner of 3rd and J st, During this hot weather days Who of you 4 went out to your district and check on the Senior Disabled Homeless Or was it to hot for you and or your cronies or puppets to follow you to take pictures Written Communications - PC Acosta - Received 9/1/2026 Page 273 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda v . 0 0 5 P a g e | 1 September 1, 2026 ITEM TITLE Community Benefit District: Preliminary Approval of the Final Assessment Engineer’s Report; Expressing Intention to Establish the Downtown Chula Vista Community Benefit District for Twenty Years; and Setting the Public Hearing on Such Establishment Report Number: 26-0227 Location: Approximately twenty-seven (27) square blocks consisting of two hundred fifty-three (253) parcels on or near the historic Third Avenue business corridor, generally bounded by E Street to the north, including properties on both the north and south sides of E Street, and I Street to the south, including properties on the north side of I Street only. The eastern and western boundaries vary along the corridor and generally follow the predominantly commercial and governmental parcels located on either side of Third Avenue. The area also includes properties along H Street between Third Avenue and Fifth Avenue. Department: Economic Development G.C. § 84308 Regulations Apply: No Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the State California Environmental Quality Act (CEQA) Guidelines. Therefore, pursuant to State CEQA Guidelines Section 15060(c)(3), no environmental review is required. Recommended Action Adopt a resolution preliminarily approving the final Assessment Engineer’s Report, expressing the intention to establish the Downtown Chula Vista Community Benefit District for a period of twenty (20) years, setting the public hearing on such establishment, and authorizing the City Manager to vote in favor of establishing the district for all parcels within the district boundaries owned by the City. SUMMARY The existing Property-Based Business Improvement District (“PBID”) for Downtown Chula Vista was established in 2001 pursuant to the Property and Business Improvement District Law of 1994 (Government Code Section 36600 et seq.) (the “PBID Law”) to implement a number of enhanced services and programs within the downtown core. The original PBID was established for a five -year period and subsequently renewed for two (2) additional ten (10) year terms. The term of the existing PBID is set to expire on December 31, 2026. Page 274 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda P a g e | 2 On March 17, 2026, the City Council adopted a Community Benefit Districts (“CBD”) Ordinance (Ordinance No. 3619) which established procedures for the formation of property and business improvement districts – referred to as CBDs – in Chula Vista. This Ordinance supplements but does not replace the procedures established by State law for the formation of PBIDs. To continue providing enhanced services to Downtown Chula Vista, a petition drive was conducted from May through August to support the establishment of a CBD. Every potentially affected property owner within the proposed CBD boundaries received a petition. City staff have received and reviewed the completed petitions and verified that property owners representing at least 30% of the total assessment to be imposed within the proposed Community Benefit District have signed and submitted petitions. Additionally, the Property Owner Representative has certified that the petition included a summary of the Management District Plan, which included at a minimum (1) a map showing the boundaries of the district; (2) information specifying where the complete management district plan can be obtained; and (3) information specifying that the complete management district plan shall be furnished upon request. At this stage, the City Council’s may choose to initiate proceedings to form the proposed district by adopting a resolution of intention generally describing the proposed improvements and services, and to call a public hearing. The adoption of the attached Resolution of Intent will formally begin the process of establishing the Downtown Chula Vista Community Benefit District for a twenty-year (20-year) term, which will then be subject to a vote of all affected property owners, pursuant to Proposition 218, the PBID Law, and the City’s CBD Ordinance. Ballots will be sent out no later than 45 days before the public hearing as required by law, along with the formal Notice of Public Hearing to all property owners in the proposed district. The ballots will be opened and counted at the public hearing scheduled for November 10, 2026. At the public hearing, the ballots will be tabulated and weighted according to each property’s proportional assessment. If the weighted ballots submitted in favor of the assessment exceed those submitted in opposition, the City Council may establish the district and levy the assessment. If this Downtown Chula Vista Community Benefit District is established, the CBD assessment will become effective on January 1, 2027. ENVIRONMENTAL REVIEW The proposed activity has been reviewed for compliance with the California Environmental Quality Act (CEQA), and it has been determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines, because the proposed activity consists of a governmental fiscal/administrative activity which does not result in a physical change in the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. This determination is also predicated on State CEQA Guidelines Section 15004 which provides direction to lead agencies on the appropriate timing for environmental review. Any future projects resulting from implementation of the Community Benefit District formation may require environmental review and preparation of appropriate documentation in accordance with applicable state requirements, including CEQA and applicable provisions of the City Municipal Code. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not applicable. Page 275 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda P a g e | 3 DISCUSSION The existing Property-Based Business Improvement District (“PBID”) for Downtown Chula Vista was established in 2001 pursuant to the Property and Business Improvement District Law of 1994 (Government Code Section 36600 et seq.) (the “PBID Law”) to provide services, programs and improvements that promote a cleaner, safer and more attractive historic downtown core. These activities supplement the base level of services provided by the City to other areas of the City outside the District and are intended to specially benefit assessed parcels within the district by supporting commerce, employment, property values, livability, and commercial and residential occupancy. Activities include reducing litter and debris, deterring crime, promoting the district, and providing beautification and other improvements that contribute to a competitive and well-managed mixed-use business district. Services and programs provided within the district include public safety; sidewalk, landscape and alley maintenance; graffiti removal; sidewalk pressure washing; homeless outreach; special events; public relations and social media; and advocacy. Management of the district has helped generate economic activity in the downtown urban core through programming and special events such as the weekly Downtown Chula Vista Farmer’s Market on Park Way, Dia de los Muertos, and Lemon Fest. The original PBID was established for a five-year period and subsequently renewed for two (2) additional ten-year (10 year) terms. The term of the existing PBID is set to expire on December 31, 2026. The PBID was originally administered by Third Avenue Village Association (“TAVA”). In 2023, all rights and obligations of TAVA were assigned to Greater Third Avenue Improvement Association (“GTAIA”), doing business as Downtown Chula Vista Association (“DCVA”). On March 17, 2026, the City Council adopted a Community Benefit Districts (“CBD”) Ordinance which established procedures for the formation of property and business improvement districts – referred to as CBDs – in Chula Vista. The ordinance supplements, but does not replace, procedures established by State law, which allow for the formation of PBIDs. The proposed CBD will be established consistent with the CBD ordinance and in compliance with State law. To support the establishment of a new district that would continue providing enhanced services and programing, a petition drive of all affected property owners was conducted between May and August by New City America, Inc. The petition drive was successful in gaining the signatures of affected property owners representing over thirty percent (30%) of the total assessment of the proposed CBD, which exceeds the threshold for proceeding with the establishment of the district. The adoption of the attached Resolution of Intent will formally begin the process of establishing the CBD for a twenty-year (20-year) period, which will then be subject to a vote of all affected property owners, pursuant to Proposition 218, the PBID Law, and the City’s CBD Ordinance. Pursuant to the PBID Law, the City would need to preliminarily approve the final Assessment Engineer’s Report. The Assessment Engineer’s Report is prepared pursuant to the PBID Law and provides a detailed description of the improvements and activities to be provided, an estimate of the cost of the improvements and activities, the methodology for determining the assessment, and an assessment roll showing the amount proposed to be specially assessed against each parcel of real property within the assessment district. The proposed assessment is calculated based on a formula using each parcel’s proportionate building area, land area, and street frontage to reflect the special Page 276 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda P a g e | 4 benefit received from district services and improvements. The assessment methodology also accounts for differences among property types and land uses, as further described in the Assessment Engineer’s Report. The petition drive requires support from property owners representing at least thirty percent (30%) of the total proposed assessment to be levied ($693,762) to initiate the district formation process. This threshold, equivalent to $208,128.60 of the proposed assessment, has been exceeded as of the date of this report. The next step in the process will be a formal vote by all affected property owners pursuant to Proposition 218 and the PBID Law. Ballots will be sent out no less than 45 days prior to the public hearing as required by state law, along with the formal Notice of Public Hearing to all property owners in the proposed district. The ballots will be opened and counted at the public hearing scheduled for November 10, 2026. At the public hearing, the district will only be established, and the associated assessment will only be levied if the ballots returned in support exceed the ballots returned in opposition, weighted based on each property’s share of the total assessment. If this goal is reached, the CBD assessment will become effect on January 1, 2027. The city voted for the establishment of the existing assessment district in 2001, and for its renewal in 2006, and 2016. City owned properties represent approximately 17.5% of the weighted district assessment. Consistent with the City’s past practice of voting in favor of assessment districts that benefit downtown and City properties, this action will also authorize the City Manager to cast the City’s ballot in favor of establishing the district. The proposed actions represent the next steps in allowing property owners to determine whether to continue the enhanced services, programs, and investments that have supported Downtown Chula Vista for more than 25 years. Timely approval will help ensure continuity of these services, sustain the progress made downtown, and support its continued growth as a vibrant commercial, residential, and visitor destination. DECISION-MAKER CONFLICT Staff has reviewed the property holdings of the City Council members and has found no property holdings within 1,000 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real property-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(7) or (8), for purposes of the Political Reform Act (Cal. Gov’t Code §87100, et seq.). Staff is not independently aware and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter. CURRENT-YEAR FISCAL IMPACT If the new CBD is ultimately established, it is anticipated to result in a current-year fiscal impact to the General Fund of approximately $44,000. This includes increases to both the City’s District assessment and a General Benefit payment the City makes to the District. This amount is anticipated to be absorbed within the existing General Fund expenditure budget, and no additional appropriation is recommended at this time. The City’s District assessment under the new CBD is expected to total $121,448.02, an increase of approximately $36,000 from prior years. The assessment amount is based on the assessed value calculated Page 277 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda P a g e | 5 pursuant to the formula established by the final Assessment Engineer’s Report and applied cumulatively to all properties owned by the City of Chula Vista that are located within the CBD boundaries. The City’s General Benefit payment under the new CBD is expected to total $14,158, an increase of approximately $8,000 from prior years. ONGOING FISCAL IMPACT Approval of the recommended action advances a CBD formation process that would result in City funding obligations for the next twenty (20) years. The City’s District assessment would be calculated based on the assessed value and established by the formula contained in the final Assessment Engineer’s Report as it applies to any property/properties owned by the City of Chula Vista during the twenty (20) year period. Additionally, the District’s budget and assessments to City would be subject to annual increases not to exceed 7% per year. Increases will be determined by the Owners’ Association/District Management Corporation and may vary between 0% and 7% annually but may not exceed 7%. According to the DCVA, the assessment has only been increased twice and has never been increased by the full amount authorized annually. ATTACHMENTS 1. Final Assessment Engineer’s report dated August 11, 2026 Staff Contact: Kevin Pointer, Principal Economic Development Specialist David Graham, Economic Development Director Page 278 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Form Rev 9/30/2025 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA PROVIDING PRELIMINARY APPROVAL OF THE FINAL ASSESSMENT ENGINEER’S REPORT; EXPRESSING ITS INTENTION TO ESTABLISH THE DOWNTOWN CHULA VISTA COMMUNITY BENEFIT DISTRICT FOR A PERIOD OF TWENTY YEARS; AND SETTING THE PUBLIC HEARING ON SUCH ESTABLISHMENT WHEREAS, the Property and Business Improvement District Law of 1994 (California Streets and Highways Code Section 36600 et seq.)(“PBID Law”) authorizes the City of Chula Vista to form one or more property and business improvement districts (“PBID”) within Chula Vista; and WHEREAS, the City of Chula Vista wishes to continue to promote the economic revitalization and physical maintenance of the downtown Chula Vista business district; and WHEREAS, on March 17, 2026, the City Council adopted a Community Benefit Districts (“CBD”) Ordinance which established procedures for the formation of PBIDs – alternately referred to therein as community benefit districts (“CBDs”) – in Chula Vista, as an alternative to, but not replacement for, the procedures established by the PBID Law; and WHEREAS, establishment of the Downtown Chula Vista CBD will further the City’s goals of creating jobs, assisting new businesses and supporting the existing Downtown Chula Vista Property-based Business Improvement District; and WHERAS, a petition signed by property owners in the proposed CBD who will pay more than thirty percent (30%) of the assessment proposed to be levied has been submitted to the City Council to initiate proceedings for the formation of a CBD; and WHEREAS, a special annual assessment will be levied on the properties located within the CBD boundaries sufficient to pay the costs of providing certain services that are necessary to promote the economic development and physical maintenance of the CBD, and costs incidental thereto; and WHEREAS, the City now wishes to proceed with the next steps to establish the CBD by adopting this Resolution. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, California, that the City Council finds that: (a) the services to be provided in the CBD will include public safety; maintenance services; sidewalk maintenance; landscape maintenance; alley maintenance; Page 279 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Resolution No. Page 2 graffiti removal; sidewalk pressure washing; homeless outreach; special events; public relations and social media; and advocacy; (b) the estimated costs for the first year of operation of the CBD is Six Hundred Ninety Three Thousand Seven Hundred and Sixty Two Dollars ($693,762), which cost may be increased in future years at a maximum of seven percent (7%) annually and which estimated cost constitutes the total amount of all special benefits to be conferred on the properties within the CBD; (c) the amount of the assessment imposed on a parcel shall be calculated as $0.14/square foot of building area, $0.08 per square foot of land area, and $4.00 per linear foot of street frontage, or $0.14 per square foot of interior unit building area for condominium buildings; (d) the assessment will be levied on property within the CBD; (e) bonds will not be issued; (f) the CBD boundaries are proposed to generally encompass approximately twenty- seven (27) square blocks consisting of two-hundred and fifty-three (253) parcels on or near the historic Third Avenue business corridor from E Street to I Street, as well as properties along H Street between Third Avenue and Fifth Avenue; and (g) a more detailed description of the location, services, the amount of the proposed assessment and costs of operation of the proposed CBD are set forth in the final management district plan, dated August 11, 2026, which is on file with the City Clerk and incorporated herein by reference. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the Recitals set forth above are true and correct and are hereby incorporated herein by this reference. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it is the intention of the City Council to initiate proceedings to form a new property-based business improvement district, known as the Downtown Chula Vista Community Benefit District, in accordance with the PBID Law and City of Chula Vista Municipal Code. The City Council hereby authorizes the City Manager to initiate the proceedings to establish the CBD in conformance with Chapter 5.14 of the City of Chula Vista Municipal Code, the PBID Law and California Government Code Section 53753. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the City Council hereby preliminarily approves the Assessment Engineer’s Report for the Downtown Chula Vista Community Benefit District dated August 11, 2026, in the form presented and on file in the office of the City Clerk. The Engineer’s Report is hereby incorporated and made a part hereof as though fully incorporated herein. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that notice is hereby given that the public hearing on the establishment of the proposed CBD and levy of the proposed assessment will be held by the City Council to receive public input on the proposed Community Benefit District and assessment on November 10, 2026, at 5:00 P.M. in the City Council Chambers located at 276 Fourth Avenue, Chula Vista. Page 280 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Resolution No. Page 3 BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the City Manager, or the City Manager’s designee, is hereby authorized and directed to execute and timely return, on behalf of the City as the owner of real property within the proposed CBD, the assessment ballot(s) relating to the proposed levy of assessments on City-owned parcels, voting in favor of the proposed assessment and formation of the CBD. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that if any portion of this Resolution, or its application to any person or circumstance, is for any reason held to be invalid, unenforceable or unconstitutional, by a court of competent jurisdiction, that portion shall be deemed severable, and such invalidity, unenforceability or unconstitutionality shall not affect the validity or enforceability of the remaining portions of the Resolution, or its application to any other person or circumstance. The City Council of the City of Chula Vista hereby declares that it would have adopted each section, sentence, clause or phrase of this Resolution, irrespective of the fact that any one or more other sections, sentences, clauses or phrases of the Resolution be declared invalid, unenforceable or unconstitutional. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the City Council has determined that the adoption of this Resolution is not subject to the California Environmental Quality Act (“CEQA”) (Public Resources Code Section 21000 et seq.) pursuant to Section 15060(c)(3) of the State CEQA Guidelines because this activity is not a “project” for purposes of Section 15378(b)(4) of the State CEQA Guidelines, as this Resolution pertains to the creation of a government funding mechanism or constitutes other government fiscal activities, which do not involve any commitment to any specific project that may result in a physical change in the environment. Presented by Approved as to form by David Graham Marco A. Verdugo Director of Economic Development City Attorney Page 281 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 0 ATTACHMENT 1 DOWNTOWN CHULA VISTA COMMUNITY BENEFIT DISTRICT DCV CBD) ASSESSMENT ENGINEER’S REPORT Being Established for a 20-year Term Pursuant to the City of Chula Vista’s Community Benefit District Ordinance Chapter 5.14 added to Title 5 of the Chula Vista Municipal Code. Prepared by Edward V. Henning California Registered Professional Engineer # 26549 Edward Henning & Associates August 11, 2026 v 3.1 Page 282 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 1 ASSESSMENT ENGINEER’S REPORT To Whom It May Concern: I hereby certify to the best of my professional knowledge and experience that each of the identified benefiting properties located within the proposed Downtown Chula Vista Community Benefit District DCV CBD") being established for a 20 year term will receive a special benefit over and above the benefits conferred on the public at large and that the amount of the proposed assessment is proportional to, and no greater than the benefits conferred on each respective property. As required by State Law, I have personally prepared this entire Report and hereby attest to all of its contents. Introduction This report serves as the “detailed engineer’s report” required by Section 4(b) of Article XIIID of the California Constitution to support the benefit property assessments to be levied within the proposed DCV CBD in the City of Chula Vista, California being established for a 20 year term. The discussion and analysis contained within this Report constitutes the required “nexus” of rationale between assessment amounts levied and special benefits conferred on real properties within the proposed DCV CBD. August 10, 2026 3/31/28 Page 283 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 2 Background The DCV CBD is a property-based benefit assessment type district being established for a 20 year term pursuant to the City of Chula Vista’s Community Benefit District Ordinance, codified Under Municipal Code Chapter 5.14 added to Title 5 (the “Ordinance”), which supplements Section 36600 et seq. of the California Streets and Highways Code (as amended), also known as the Property and Business Improvement District Law of 1994 the “Act”). Due to the benefit assessment nature of assessments levied within a property and business improvement district (“PBID”) or community benefit district (“CBD”), district program costs are to be distributed amongst all identified benefiting properties based on the proportional amount of special benefit each property is expected to derive from the assessments levied. Only those properties on which special benefits are expected to be conferred from assessment funded programs and activities may be assessed and only in an amount proportional to the relative special benefits expected to be conferred on each property. Supplemental Article XIIID Section 4(b) California Constitution Procedures and Requirements Proposition 218, approved by the voters of California in November of 1996, adds a supplemental array of procedures and requirements to be carried out prior to levying a property-based assessment like the DCV CBD. These requirements are in addition to requirements imposed by State and local assessment enabling laws. These requirements were “chaptered” into law as Article XIIID Section 4(b) of the California Constitution (hereinafter Article XIIID). Since Article XIIID provisions will affect all subsequent calculations to be made in the final assessment formula for the DCV CBD, each of these supplemental requirements will be taken into account and addressed in this Report. The key provisions of Article XIIID along with a description of how the DCV CBD complies with each of these provisions are delineated below. Note: All section references below pertain to Article XIII D of the California Constitution) Page 284 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 3 Finding 1. From Section 4(a): “Identify all parcels which will have a special benefit conferred upon them and upon which an assessment will be imposed” Boundaries The proposed Downtown Chula Vista CBD (DCV CBD) consists of approximately 27 square blocks blocks vary in size on each side of both Third Avenue, in general with E Street as the northern boundary north and south sides of the street, I Street as the southern boundary, (north side only) and on the east and west side of Third Avenue which following the predominantly commercial and governmental parcels in a varying boundary. There are 253 parcels owned by 199 property owners. The boundaries also include large parcels and buildings owned by both the City and County of San Diego. The boundary of the DCV CBD and parcels within it are shown on the map of the DCV CBD attached as Appendix 2 to this Report. District Boundary Rationale The DCV CBD boundaries are comprised of parcels that highlight restaurants, bars, breweries, retailers, services, office buildings, government buildings, two hospitals, health care office buildings, banks and mixed-use residential condominiums, apartment units in general. The boundaries from the renewal of this property assessment district mirror, in general, the boundaries of the PBID approved by property owners in 2017 with an extension of the service area running westward on both sides of H Street, ending at the eastern intersection of Fourth Avenue and H Street. Under the new local enabling ordinance, the term will allow the district to help fund and improve new projects throughout the district, over a maximum 20-year term. The new projects may include the creation of Memorial Plaza and new public spaces created and managed throughout the district boundaries. Northern Boundary The northern boundary of the proposed DCV CBD is bounded by E Street on the north, including the north and south sides of E Street ending at parcel 566-240-011 on the east, the parcel at the northwest section of the intersection of Del Mar Avenue and E Street. On the west side, the district ends at parcel 566-232-010, 566-232-018, 566-232-013 and parcel 566-232-017 which serves as the group of parcels defining the northwest corner of the District boundaries. No District special benefit services shall be provided north of the northern District boundary. Western Boundary The western boundary of the proposed Downtown Chula Vista CBD includes the parcel at the southwest corner of the intersection of E Street and Landis Avenue, parcel 568 -043-022. The western boundary continues southward running along the west side of the parcels from 568-043022 ending at parcel 568- 151-022. The western boundary then extends westward to include parcels 568-153-001, 568-153-002 west of Garrett Street and F street). The western boundary then crosses southward at F Street to include the following parcels running southward on a variety of blocks starting with parcel 568-270-031, then crosses southward at Fourth Avenue and runs southward on the west side of parcels 568-270-029, 568- 270-044. The western boundary continues southward and runs along the west side of Third Avenue from Park Way and Third Avenue including all the parcels along the west side of Third Avenue, parcel 573 - 300-046 running southward to parcels 573-450-066. The western boundary then moves westward to both sides of H Street ending at parcel 568-450-55 at Fourth Avenue and H Street (north side) and parcel 573010-021 at Fourth Avenue and H Street (south side). The western boundary then runs eastward on the south side of H Street, up to Third Avenue. From there the western boundary turns at H Street turning southward to include the County owned buildings including parcel 573-100-037, 573-100-039 and 573- Page 285 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 4 100-038, ending at the northwestern corner of the intersection of I Street and Third Avenue, parcel 573- 100-038. No District programs and services will be provided west of the western District boundary. Southern Boundary The southern boundary of the proposed DCV CBD ends at two parcels at the northwestern parcel of the intersection of I Street and Third Avenue, parcel 573-100-038 and then includes the parcel at the northeastern corner of I Street and Third Avenue, parcel 573-110-024. No District programs and services will be provided south of the southern District boundary. Eastern Boundary The eastern boundary of the proposed DCV CBD starts at the northeastern parcel of the intersection of I Street and Third Avenue, parcel 573-110-024 and then proceeds northward on the east side of Third Avenue including all the parcels on the east side of Third Avenue up to parcel 573-512-039 at Alvarado Street. The eastern boundary then continues running northward along the east side of Third Avenue including parcels 573-420-021, 573-420-020 and parcel 573-420-019. The eastern boundary then continues northward running along the east side of Third Avenue including all the parcels between the alley east of Third Avenue to Third Avenue from Alvarado Street on the south to Center Street on the north. All the parcels between Third Avenue and the alley to the east of Third Avenue are included in the eastern boundary. At Center Street, the eastern boundary continues northward to include all the parcels between the east side of Third Avenue and the west side of Del Mar Avenue, ending at F Street (parcel 568-333-011). The eastern boundary then moves northward along the east side of Church Avenue starting at parcel 568-162011 at the northeastern corner of the intersection of F Street and Church Avenue and continues northward including all the parcels fronting along the east side of Church Avenue ending at the parcel on E Street, parcel 569- 072-026. The eastern boundary terminates at the parcel on the north side of E Street and Del Mar Avenue, parcel 566-240-011. No District programs and services will be provided east of the eastern District boundary. Summary All identified parcels within the above-described boundaries and shall be assessed to fund supplemental special benefit programs, services and improvements as outlined in the Management District Plan (the Plan”) and in this Assessment Engineer’s Report (the “Report”). All DCV CBD funded services, programs and improvements provided within the above-described boundaries shall confer special benefit to identified assessed parcels inside the DCV CBD boundaries and none will be provided outside of the DCV CBD. Each assessed parcel within the DCV CBD will proportionately specially benefit from the DCV CBD funded Civil Sidewalks-Safety-Cleanliness, District Identity-Placemaking, Administration and Contingency-Reserve as described in more detail under “Work Plan”, beginning on page 12 of this Report. These services, programs and improvements are intended to improve commerce, employment, rents, livability and commercial and residential occupancy rates of parcels and businesses within the DCV CBD by reducing litter and debris, deterring crime, marketing the available goods and services and installing beautification elements, each considered necessary in a competitive properly managed mixed-use business district. All DCV CBD funded services programs and improvements are considered supplemental, above normal base level services provided by the City of Chula Vista and are only provided for the special benefit of assessed parcels within the boundaries of the DCV CBD. A list of all parcels included in the proposed DCV CBD is shown as Appendix 1, attached to this Report with their respective San Diego County assessor parcel number. The boundary of the proposed DCV CBD and parcels within it are shown on the map of the DCV CBD attached as Appendix 2 to this Report. Page 286 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 5 Finding 2. From Section 4(a): “Separate general benefits (if any) from the special benefits conferred on parcel(s). Only special benefits are assessable. “ QUANTITATIVE BENEFIT ANALYSIS As stipulated in Article XIIID Section 4(b) of the California Constitution, assessment district programs and activities confer a combination of general and special benefits to properties, but the only program benefits that can be assessed are those that provide special benefit to the assessed properties. For the purposes of this analysis, a “general benefit” is hereby defined as: “A benefit to properties in the area and in the surrounding community or benefit to the public in general resulting from the improvement, activity, or service to be provided by the assessment levied”. “Special benefit” as defined by Article XIIID means a distinct benefit over and above general benefits conferred on real property located in the district. The property uses within the boundaries of the DCV CBD that will receive special benefits from DCV CBD funded programs and services are currently an array of restaurants, bars, breweries, retailers, services, office buildings, government buildings and market rate apartment units with future residential condominiums. Services, programs and improvements provided and funded by the DCV CBD are primarily designed to provide special benefits as described below to identified assessed parcels and the array of land uses within the boundaries of the DCV CBD and are over and above services already provided by the City to the general public at large. The proposed DCV CBD programs, improvements and services and Year 1 budget allocation are as follows: Year 1 - DCV CBD Special Benefit Cost Allocations (Assessment Revenue Only) * Civil Sidewalks- Safety- Cleanliness District Identity Placemaking Administration Contingency Reserve TOTAL 59.9629% 14.9907% 22.0537% 2.9927% 100.00% 416,000 $104,000 $153,000 $20,762 $693,762 These dollar numbers are rounded to the closest whole dollar amount Assessed parcels are conferred proportionate special benefits from all DCV CBD funded programs, services and improvements which are intended to attract more customers, users, visitors, employees, tenants and investors. DCV CBD programs, services and improvements are designed to increase business volumes, sales transactions, occupancies, livability and rental income. These programs, services and improvements are designed to improve commerce and aesthetic appeal for owners, tenants, patrons, residents, visitors and employees of these parcels within the DCV CBD by reducing litter and debris, deterring crime, marketing the available goods and services and installing beautification elements, each considered necessary in a competitive properly managed mixed-use business district. Importantly, these services and improvements are in addition to services and improvements that the City provides to the general public and are only provided to and funded by the assessed parcels. These benefits are particular and distinct to each and every identified and assessed parcel within the DCV CBD and are not provided to non-assessed parcels outside of the DCV CBD. These programs, services and improvements will only be provided to each individual assessed parcel within the DCV CBD Page 287 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 6 boundaries and, in turn, confer proportionate special benefits to each assessed parcel. In the case of the DCV CBD, the very nature of the purpose of this CBD is to fund supplemental programs, services and improvements to assessed parcels within the DCV CBD boundaries above and beyond what is being currently funded either via normal tax supported methods or other funding sources. All benefits derived from the assessments to be levied on assessed parcels within the DCV CBD are for services, programs and improvements directly and specially benefiting each individual assessed parcel within the DCV CBD. No DCV CBD funded services, activities or programs will be provided outside of the DCV CBD boundaries. While every attempt is made to provide DCV CBD services and programs to confer special benefits only to those identified assessed parcels within the DCV CBD. Article XIIID stipulates that the portion of the program costs that are attributable to general benefits must be assigned a value and funded from sources other than assessment revenue. A special benefit does not become or create general benefits if the special benefit creates or produces general benefits, either General benefits might be conferred on parcels within the DCV CBD, or “spillover” onto parcels surrounding the DCV CBD, or to the public at large who might be passing through the DCV CBD with no intention of transacting business within the DCV CBD or interest in the DCV CBD itself. Assessment engineering experience throughout California has found that general benefits within a given business improvement district tend to range from 2-6% of the total costs. There are three methods that have been used by this Assessment Engineer for determining general and special benefit values within assessment districts: 1) The parcel-by-parcel allocation method 2) The program/activity line-item allocation method, and 3) The composite district overlay determinant method. A majority of PBID type districts in California for which this Assessment Engineer has provided assessment engineering services in conformance with Article XIIID have used Method #3, the composite district overlay determinant method which will be used for the DCV CBD. This method of computing the value of general benefit involves a composite of three distinct types of general benefit – general benefit to assessed parcels within the DCV CBD, general benefit to the public at large within the DCV CBD and general benefit to parcels outside the DCV CBD. General Benefit – Assessed Parcels within the DCV CBD DCV CBD funded programs are narrowly designed and carefully implemented to specially benefit the assessed DCV CBD parcels and are only provided for the special benefit to each and every assessed parcel within the DCV CBD. It is the opinion of this Engineer, based on over 30 years of professional assessment engineering experience and knowledge of similar factors used in similar type business improvement districts throughout California by other Assessment Engineer’s, that nearly 100% of benefits conferred on the 253 assessed parcels within the DCV CBD are distinct and special. In the case of the DCV CBD, it is projected that there are 0.25% general benefits conferred on these parcels. This high ratio of special benefits to general benefits is because the DCV CBD funded programs and services are specially geared to the unique needs of each parcel within the DCV CBD and are directed specially only to these parcels within the DCV CBD and are in addition to services provided City-wide and to the general public at large. This concept is further reinforced by the proportionality of special benefits conferred on each parcel within Page 288 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 7 the DCV CBD as determined by the special benefit assessment formula as it is applied to the unique and varying property characteristics of each parcel. The computed 0.25% general benefit value on the 253 assessed parcels within the DCV CBD equates to $1,734 or (.25% x $693,762). Spillover General Benefits to Parcels Outside of DCV CBD While DCV CBD programs and services will not be provided directly to parcels outside the DCV CBD boundaries, it is reasonable to conclude that DCV CBD services may confer an indirect general benefit on parcels adjacent to the DCV CBD boundaries. The California Court of Appeal has previously held that indirect benefits to non-assessed parcels resulting from programs and services provided directly and only to assessed parcels does not in and of itself create a general benefit. Nevertheless, out of an abundance of caution, and in light of certain adjacent parcels, this report analyzes the potential for some general benefit. An inventory of the DCV CBD boundaries finds that the DCV CBD is immediately surrounded by 140 parcels. Of these, 21 are commercial zoned parcels with commercial uses and 119 are either residentially zoned parcels with residential uses or public or non-profit owned parcels with public or non-profit uses. The 140 parcels directly outside the DCV CBD boundaries can reasonably be assumed to receive some indirect general benefit as a result of DCV CBD funded programs, services and improvements. Based on over 30 years of assessment engineering experience and knowledge of similar factors used in similar type business improvement districts throughout California by other Assessment Engineer’s, it is the opinion of this Engineer that a benefit factor of 1.0 be attributed to the 253 assessed parcels within the DCV CBD, a benefit factor of 0.05 be attributed to general benefits conferred on the 21 commercial parcel located adjacent to or across the street from assessed parcels within the DCV CBD, and a benefit factor of 0.005 be attributed to general benefits conferred on the 119 residential or public or non-profit parcels and uses located adjacent to or across the street from assessed parcels within the DCV CBD. The cumulative dollar value of this general benefit type equates to $4,545 ($2,892 + $1,653) as delineated in the following Table: Spillover” General Benefits * Parcel Type Quantity Benefit Factor Benefit Units Benefit Percent Benefit Value Assessed Parcels Inside BID 253 1.000 253.00 99.3521% $693,762 Commercial Perimeter Parcels Outside BID 21 0.050 1.05 0.4123% $2,892 Other Perimeter Parcels Outside BID 119 0.005 0.60 0.2356% $1,653 TOTAL 254.65 100.00% $701,550 It is noted that some of these numbers are rounded to the closest whole dollar amount. General Benefit - Public At Large While the DCV CBD funded programs are narrowly designed and carefully implemented to specially benefit the assessed DCV CBD parcels, are provided directly and exclusively to assessed parcels, and are only provided for the special benefit to each and every assessed parcel within the DCV CBD, these programs also provide general benefits to the public at large within the DCV CBD. For the proposed DCV CBD activities, assessment engineering experience in California, based on actual professionally conducted pedestrian intercept surveys in other similar business improvement type districts Page 289 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 8 has found that generally over 95% of people moving about within similar district boundaries are engaged in business related to assessed parcels and businesses located within them, while the public at large “just passing through” is typically 5% or less. Districts with high levels of transit connecting nodes and patrons may have higher levels of general benefits conferred on non-engaged “passers-through”, i.e. the public at large. Tangible services and improvements such as security, benches and shade trees would confer higher levels of general benefits on the public at large than say steam cleaned sidewalks, planters, decorative pavement and other general district management and operation activities. Typically, a factor range from 2.0% to 4% 0.02 to 0.04) is assigned to tangible streetscape/sidewalk type services, programs and improvements such as security, benches and shade trees; in turn, a factor ranging from 0.25% to 1.0% (0.0025 to 0.01) is assigned to intangible services, programs and improvements such as sidewalk and pavement cleaning, general landscape improvements and ancillary services such as district management, operations and overhead. While the California Court of Appeal has previously held that a business improvement district that provides services directly to assessed properties in addition to services provided to the public at large provides only a special benefit to the assessed parcels even if the special benefits produce general benefits to the public at large. Nevertheless, out of an abundance of caution, this report identifies some general benefit. Based on experience and the nature of the proposed DCV CBD funded programs and over 30 years of assessment engineering experience, it is the opinion of this Assessment Engineer that districtwide general benefit factors for each of the DCV CBD funded special benefit program element costs that provide a general benefit to the public at large are as shown in the Table below. These factors are applied to each program element cost in order to compute the dollar and percent value of districtwide general benefits to the public at large. The total dollar value of this general benefit type, public at large, equates to $7,729 as delineated in the following Table: GENERAL BENEFITS TO “PUBLIC AT LARGE” * A B C E Program Element Dollar Allocation General Benefit Percent General Benefit Factor General Benefit Value A x C) Civil Sidewalks-Safety-Cleanliness $416,000 1.50% 0.0150 $6,240 District Identity-Placemaking $104,000 0.50% 0.0050 $520 Administration $153,000 0.50% 0.0050 $765 Contingency $20,762 0.50% 0.0050 $104 Total $693,762 $7,629 It is noted that some of these numbers are rounded to the closest whole dollar amount. Composite General Benefit Based on the general benefit values delineated in the three sections above, the total value of districtwide general benefits conferred on assessed parcels within the DCV CBD, on the public at large and on parcels outside the DCV CBD, equates to $13,908 ($1,734 + $4,545 + $7,629). Total Year 1 program costs are Page 290 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 9 estimated $707,670. This Assessment Engineer has determined that the general benefit value portion of this equates to $13,908 or 1.97% of the total estimated DCV CBD program costs. This leaves a value of 98.03% assigned to special benefit related costs. The general benefit percentage will now be conservatively rounded up to 2.0% of the total revised program costs of $707,920 or $14,158. Subtracting the composite general benefit value of $14,158 from the revised total estimated program cost of $707,920 results in a special benefit value of $693,762. This is the total amount of assessments to be levied on the 253 assessed parcels in the proposed renewed DCV CBD for Year 1. General benefit costs of $14,158 will need to be funded by other non-assessment sources. A breakdown of projected special and districtwide general benefits for Years 1-20 for each program element is shown in the following Table: 20 Year Special + General Benefit Costs (Assumes max of 7% Annual Increase) * These dollar numbers are rounded to the closest whole dollar amount) YR PROGRAM CATEGORY SPECIAL BENEFIT ASSESSMENT COSTS GENERAL BENEFIT NON- ASSESSMENT COSTS TOTAL ADJUSTED COSTS OF TOTAL 1 Civil Sidewalks-Safety-Cleanliness $416,000 $8,490 $424,490 59.9629% District Identity - Placemaking $104,000 $2,122 $106,122 14.9907% Administration $153,000 $3,122 $156,122 22.0537% Contingency - Reserve $20,762 $424 $21,186 2.9927% Total $693,762 $14,158 $707,920 100.0000% 2 Civil Sidewalks-Safety-Cleanliness $445,120 $9,084 $454,204 59.9629% District Identity - Placemaking $111,280 $2,271 $113,551 14.9907% Administration $163,710 $3,341 $167,051 22.0537% Contingency - Reserve $22,215 $454 $22,669 2.9927% Total $742,325 $15,150 $757,475 100.0000% 3 Civil Sidewalks-Safety-Cleanliness $476,278 $9,720 $485,998 59.9629% District Identity - Placemaking $119,070 $2,430 $121,500 14.9907% Administration $175,170 $3,575 $178,745 22.0537% Contingency - Reserve $23,770 $486 $24,256 2.9927% Total $794,288 $16,211 $810,499 100.0000% 4 Civil Sidewalks-Safety-Cleanliness $509,617 $10,400 $520,017 59.9629% District Identity - Placemaking $127,405 $2,600 $130,005 14.9907% Administration $187,432 $3,825 $191,257 22.0537% Contingency - Reserve $25,434 $520 $25,954 2.9927% Total $849,888 $17,345 $867,233 100.0000% Page 291 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 10 5 Civil Sidewalks-Safety-Cleanliness $545,290 $11,128 $556,418 59.9629% District Identity - Placemaking $136,323 $2,782 $139,105 14.9907% Administration $200,552 $4,093 $204,645 22.0537% Contingency - Reserve $27,214 $556 $27,770 2.9927% Total $909,379 $18,559 $927,938 100.0000% 6 Civil Sidewalks-Safety-Cleanliness $583,460 $11,907 $595,367 59.9629% District Identity - Placemaking $145,866 $2,977 $148,843 14.9907% Administration $214,591 $4,380 $218,971 22.0537% Contingency - Reserve $29,119 $595 $29,714 2.9927% Total $973,036 $19,859 $992,895 100.0000% 7 Civil Sidewalks-Safety-Cleanliness $624,302 $12,740 $637,042 59.9629% District Identity - Placemaking $156,077 $3,185 $159,262 14.9907% Administration $229,612 $4,687 $234,299 22.0537% Contingency - Reserve $31,157 $637 $31,794 2.9927% Total $1,041,148 $21,249 $1,062,397 100.0000% 8 Civil Sidewalks-Safety-Cleanliness $668,003 $13,632 $681,635 59.9629% District Identity - Placemaking $167,002 $3,408 $170,410 14.9907% Administration $245,685 $5,015 $250,700 22.0537% Contingency - Reserve $33,338 $682 $34,020 2.9927% Total $1,114,028 $22,737 $1,136,765 100.0000% 9 Civil Sidewalks-Safety-Cleanliness $714,763 $14,586 $729,349 59.9629% District Identity - Placemaking $178,692 $3,647 $182,339 14.9907% Administration $262,883 $5,366 $268,249 22.0537% Contingency - Reserve $35,672 $730 $36,402 2.9927% Total $1,192,010 $24,329 $1,216,339 100.0000% 10 Civil Sidewalks-Safety-Cleanliness $764,796 $15,607 $780,403 59.9629% District Identity - Placemaking $191,200 $3,902 $195,102 14.9907% Administration $281,285 $5,742 $287,027 22.0537% Contingency - Reserve $38,169 $781 $38,950 2.9927% Total $1,275,450 $26,032 $1,301,482 100.0000% 11 Civil Sidewalks-Safety-Cleanliness $818,332 $16,699 $835,031 59.9629% District Identity - Placemaking $204,584 $4,175 $208,759 14.9907% Administration $300,975 $6,144 $307,119 22.0537% Contingency - Reserve $40,841 $836 $41,677 2.9927% Total $1,364,732 $27,854 $1,392,586 100.0000% Page 292 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 11 12 Civil Sidewalks-Safety-Cleanliness $875,615 $17,868 $893,483 59.9629% District Identity - Placemaking $218,905 $4,467 $223,372 14.9907% Administration $322,043 $6,574 $328,617 22.0537% Contingency - Reserve $43,700 $895 $44,595 2.9927% Total $1,460,263 $29,804 $1,490,067 100.0000% 13 Civil Sidewalks-Safety-Cleanliness $936,908 $19,119 $956,027 59.9629% District Identity - Placemaking $234,228 $4,780 $239,008 14.9907% Administration $344,586 $7,034 $351,620 22.0537% Contingency - Reserve $46,759 $958 $47,717 2.9927% Total $1,562,481 $31,891 $1,594,372 100.0000% 14 Civil Sidewalks-Safety-Cleanliness $1,002,492 $20,457 $1,022,949 59.9629% District Identity - Placemaking $250,624 $5,115 $255,739 14.9907% Administration $368,707 $7,526 $376,233 22.0537% Contingency - Reserve $50,032 $1,025 $51,057 2.9927% Total $1,671,855 $34,123 $1,705,978 100.0000% 15 Civil Sidewalks-Safety-Cleanliness $1,072,666 $21,889 $1,094,555 59.9629% District Identity - Placemaking $268,168 $5,473 $273,641 14.9907% Administration $394,516 $8,053 $402,569 22.0537% Contingency - Reserve $53,534 $1,097 $54,631 2.9927% Total $1,788,884 $36,512 $1,825,396 100.0000% 16 Civil Sidewalks-Safety-Cleanliness $1,147,753 $23,421 $1,171,174 59.9629% District Identity - Placemaking $286,940 $5,856 $292,796 14.9907% Administration $422,132 $8,617 $430,749 22.0537% Contingency - Reserve $57,281 $1,174 $58,455 2.9927% Total $1,914,106 $39,068 $1,953,174 100.0000% 17 Civil Sidewalks-Safety-Cleanliness $1,228,096 $25,060 $1,253,156 59.9629% District Identity - Placemaking $307,026 $6,266 $313,292 14.9907% Administration $451,681 $9,220 $460,901 22.0537% Contingency - Reserve $61,291 $1,256 $62,547 2.9927% Total $2,048,094 $41,802 $2,089,896 100.0000% 18 Civil Sidewalks-Safety-Cleanliness $1,314,063 $26,814 $1,340,877 59.9629% District Identity - Placemaking $328,518 $6,705 $335,223 14.9907% Administration $483,299 $9,865 $493,164 22.0537% Contingency - Reserve $65,581 $1,344 $66,925 2.9927% Total $2,191,461 $44,728 $2,236,189 100.0000% Page 293 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 12 19 Civil Sidewalks-Safety-Cleanliness $1,406,047 $28,691 $1,434,738 59.9629% District Identity - Placemaking $351,514 $7,174 $358,688 14.9907% Administration $517,130 $10,556 $527,686 22.0537% Contingency - Reserve $70,172 $1,438 $71,610 2.9927% Total $2,344,863 $47,859 $2,392,722 100.0000% 20 Civil Sidewalks-Safety-Cleanliness $1,504,470 $30,699 $1,535,169 59.9629% District Identity - Placemaking $376,120 $7,676 $383,796 14.9907% Administration $553,329 $11,295 $564,624 22.0537% Contingency - Reserve $75,084 $1,539 $76,623 2.9927% Total $2,509,003 $51,209 $2,560,212 100.0000% DCV CBD WORK PLAN Overview The services, programs and improvements to be funded by the DCV CBD include Civil Sidewalks-Safety- Cleanliness, District Identity-Placemaking, Administration and Contingency-Reserve. The property uses within the boundaries of the DCV CBD that will receive special benefits from DCV CBD funded programs, services and improvements are currently an array of restaurants, bars, breweries, retailers, services, office buildings, government buildings and market rate apartment units with future residential condominiums zoned as mixed-use. Services, programs and improvements provided and funded by the DCV CBD are primarily designed to provide special benefits as described below to identified assessed parcels within the boundaries of the DCV CBD, and are different from, supplemental and/or in addition to services provided by the City to the public at large. These special benefits are particular and distinct to each and every identified assessed parcel within the DCV CBD and are not provided to non-assessed parcels outside of the DCV CBD. These programs, services and improvements will only be provided to each individual assessed parcel within the DCV CBD boundaries and, in turn, confer proportionate special benefits to each assessed parcel. The very nature of the purpose of the DCV CBD is to fund supplemental programs, services and improvements to assessed parcels within the DCV CBD boundaries above and beyond the base line services provided by the City of Chula Vista. The City of Chula Vista does not provide these supplemental programs and services to non-assessed parcels. All benefits derived from the assessments to be levied on assessed parcels within the DCV CBD are for services, programs and improvements directly benefiting each individual assessed parcel within the DCV CBD. No DCV CBD funded services, activities or programs will be provided outside of the DCV CBD boundaries. The program special benefit cost allocations of the DCV CBD assessment revenues for Year 1-2026 are shown in the Table on page 15 of this Report. The projected program special benefit cost allocations of the DCV CBD assessment revenues for the 20-year term of the DCV CBD, assuming a 7% maximum annual assessment rate increase, are shown in the Table on page 14 of this Report. Page 294 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 13 WORK PLAN DETAILS The services to be provided by the DCV CBD (i.e. Civil Sidewalks-Safety-Cleanliness, District Identity- Placemaking, Administration and Contingency-Reserve) are all designed to contribute to the cohesive urban fabric to ensure economic success and vitality of each assessed parcel within the proposed DCV CBD. The assessed parcels in the DCV CBD will specially benefit from the DCV CBD programs in the form of increasing commerce and improving economic success, livability and vitality through meeting the DCV CBD Goals: to improve cleanliness, safety, beautification, landscaping and to attract and retain businesses and services, generate more pedestrian and visitor traffic and to increase commerce and improve the economic viability of each individual assessed parcel. Assessed parcels are conferred proportionate special benefits from all DCV CBD funded programs, services and improvements which are intended to attract more customers, users, visitors, employees, tenants, residents and investors. DCV CBD programs, services and improvements are designed to increase business volumes, sales transactions, occupancies and rental income. These programs, services and improvements are designed to improve commerce, livability and aesthetic appeal for owners, tenants, patrons, residents, visitors and employees of these parcels within the DCV CBD by reducing litter and debris, deterring crime, marketing the available goods and services and installing beautification elements, each considered necessary in a competitive properly managed business district. These benefits are particular and distinct to each and every identified and assessed parcel within the DCV CBD and are not provided to non-assessed parcels outside of the DCV CBD. These programs, services and improvements will only be provided to each individual assessed parcel within the DCV CBD boundaries and, in turn, confer proportionate "special benefits” to each assessed parcel. The following programs, services and improvements are proposed by the DCV CBD to specially benefit each and every individually assessed parcel within the DCV CBD boundaries.. CIVIL SIDEWALKS – SAFETY – CLEANLINESS $416,000 60% Examples of this category of special benefit services and costs may include, but are not limited to: Regular sidewalk and gutter sweeping Periodic sidewalk steam cleaning Beautification of the district Enhanced trash emptying (over and above city services) Timely graffiti removal, within 48 hours as necessary Maintenance of existing and new public spaces Maintenance of the new proposed Memorial Plaza Set up and take down of special events Installation and maintenance of flowers throughout the district (outside of medians) Possible supplemental services provided to the City of Chula Vista through contracting out services in city assets such as the downtown parking structure Personnel to manage in-house or contracted maintenance and any security teams. The goal of the Civil Sidewalk-Safety-Cleanliness work plan component is to ensure that all identified assessed parcels are clean, well maintained and safe, thereby creating an attractive DCV CBD for the special benefit of each and every assessed DCV CBD parcel. These supplemental services will assist in creating a clean, orderly and safer environment for the special benefit of each assessed parcel in the DCV Page 295 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 14 CBD. A well maintained, secured and managed environment may improve commerce and and may attract patrons, visitors and tenants and increase rents and occupancies. For the land uses within the DCV CBD this work plan component is designed to increase commerce and customer activity, attract and retain new business, residents and patrons, and may increase rents and occupancies for the assessed parcels within the DCV CBD boundaries. Each assessed parcel will specially benefit from the Civil Sidewalk-Safety- Cleanliness programs which will only be provided to, and for the direct benefit of, each identified assessed parcel within the DCV CBD boundaries. DISTRICT IDENTITY - PLACEMAKING – $104,000 15% Examples of this category of special benefit services and costs may include, but are not limited to: Traditional events done by the Downtown Chula Vista Association Contracting with social media, public relations firm Enhancing current City holiday and seasonal decorations Branding of Downtown Chula Vista so a positive image is promoted to the public Activation of Memorial Plaza Banner programs Public space design and improvements Personnel to manage in-house or contracted public relations, web site maintenance and social media contractors. The District Identity-Placemaking component is designed to promote the image of DCV CBD with physical improvements and amenities to attract and increase pedestrian activity and both business and residential occupancies. This program helps meet the goals of business and service attraction and retention and increased commerce while attracting new businesses, residents and investors. The District Identity-Placemaking component is also designed with the intent to increase the public’s awareness of the DCV CBD as a single destination in order to attract consumers to the rich collection of attractions, events, and services which will ultimately lead to increased commerce and livability. For example, the DCV CBD will publish a regular e-newsletter to keep property owners informed of upcoming events and services. The Owners’ Association will use its website to promote the assessed DCV CBD parcels in an effort to increase awareness of the DCV CBD as a destination for consumers and business and residential tenants and increase occupancy and commerce on the assessed parcels. The website will provide visitors with information about the DCV CBD and comply with the open meetings and records provisions of the Brown Act. ADMINISTRATION - $153,000 22% Examples of this category of special benefit services and costs may include, but is not limited to: Staff and administrative costs, contracted or in-house Directors and Officers and General Liability Insurance Office related expenses Office and equipment rent Financial reporting and accounting Legal work CONTINGENCY - RESERVE - $20,762 3% Examples of this category of special benefit services and costs include, but is not limited to: Delinquencies, City/County fees, reserves Page 296 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 15 The Administration and Contingency-Reserve components are key to the proper expenditure of DCV CBD assessment funds and the administration of DCV CBD programs and activities for the special benefit of all parcels and land uses within the DCV CBD. The Administration and Contingency-Reserve work plan component exists only for the purposes of the DCV CBD and directly relates to the implementation of cleaning, security and beautification, district identity and improvement programs and services, which specially benefit each identified assessed parcel within the DCV CBD boundaries. In summary, all DCV CBD funded services, programs and improvements described above confer special benefits to identified assessed parcels inside the DCV CBD boundaries and none will be provided outside of the DCV CBD. Each assessed parcel within the DCV CBD will proportionately specially benefit from Civil Sidewalks-Safety-Cleanliness, District Identity-Placemaking, Administration and Contingency- Reserve. These services, programs and improvements are intended to improve commerce, employment, rents, livability and occupancy rates of assessed parcels within the DCV CBD by reducing litter, deterring crime, marketing the available goods and services and installing physical improvements, each considered necessary in a competitive properly managed mixed-use business district. All DCV CBD funded services programs and improvements are considered supplemental, above normal base level services provided by the City of Chula Vista and are only provided for the special benefit of each and every assessed parcel within the boundaries of the DCV CBD. WORK PLAN BUDGET Each identified assessed parcel within the DCV CBD will be assessed the full amount of the proportionate special benefit conferred upon it based on the level of DCV CBD funded services provided. The projected DCV CBD program special benefit (assessments) allocation budget for Year 1 is shown in the following Table: DCV CBD Year 1 Special Benefit Assessment Budget by Zone * These numbers are rounded to the closest whole dollar amount) Civil Sidewalks-Safety- Cleanliness District Identity - Placemaking Administration Contingency Reserve TOTAL 59.9629% 14.9907% 22.0537% 2.9927% 100% 416,000 $104,000 $153,000 $20,762 $693,762 In order to carry out the DCV CBD programs outlined in the previous section, a Year 1 assessment budget of $693,762 is projected. Since the DCV CBD is being proposed for a 20-year term, projected program costs for future years (Years 2-20) are set at the inception of the DCV CBD. While future inflationary and other program cost increases are unknown at this point, a maximum annual increase of 7% per year, commensurate to special benefits conferred on each assessed parcel, is incorporated into the projected program costs and assessment rates for the DCV CBD. Funding carryovers, if any, may be reapportioned the following year for related programs, services and improvements in accordance with the Plan. Detailed annual budgets will be prepared by the Page 297 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 16 Property Owners’ Association Board and included in the Annual Report for the City Council’s review and approval. It is recognized that market conditions may cause the cost of providing goods and services to fluctuate from year to year for the proposed DCV CBD. Accordingly, the Owners’ Association shall have the ability to reallocate any budget line item within the budget categories in the Management District Plan subject to the review and approval by the Owners’ Association Board. Any surplus or unspent funds, per category, shall be accumulated year to year over the life of the DCV CBD. Such reallocation will be included in the Annual Report for approval by the City of Chula Vista City Council pursuant to related City policies. Any accrued interest or delinquent payments may be expended in any budget category in accordance with the Management District Plan. A 20-year projected DCV CBD special benefit budget is shown in the following Table: YEAR 1-20 PROJECTED DCV CBD ASSESSMENT BUDGET SUMMARY (Special Benefits) * Assumes 7% max rate increase per year) These numbers are rounded to the closest whole dollar amount) YR Civil Sidewalks- Safety- Cleanliness District Identity - Placemaking Administration Contingency Reserve TOTAL 59.9629% 14.9907% 22.0537% 2.9927% 100.00% 1 $416,000 $104,000 $153,000 $20,762 $693,762 2 $445,120 $111,280 $163,710 $22,215 $742,325 3 $476,278 $119,070 $175,170 $23,770 $794,288 4 $509,617 $127,405 $187,432 $25,434 $849,888 5 $545,290 $136,323 $200,552 $27,214 $909,379 6 $583,460 $145,866 $214,591 $29,119 $973,036 7 $624,302 $156,077 $229,612 $31,157 $1,041,148 8 $668,003 $167,002 $245,685 $33,338 $1,114,028 9 $714,763 $178,692 $262,883 $35,672 $1,192,010 10 $764,796 $191,200 $281,285 $38,169 $1,275,450 11 $818,332 $204,584 $300,975 $40,841 $1,364,732 12 $875,615 $218,905 $322,043 $43,700 $1,460,263 13 $936,908 $234,228 $344,586 $46,759 $1,562,481 14 $1,002,492 $250,624 $368,707 $50,032 $1,671,855 15 $1,072,666 $268,168 $394,516 $53,534 $1,788,884 16 $1,147,753 $286,940 $422,132 $57,281 $1,914,106 17 $1,228,096 $307,026 $451,681 $61,291 $2,048,094 18 $1,314,063 $328,518 $483,299 $65,581 $2,191,461 19 $1,406,047 $351,514 $517,130 $70,172 $2,344,863 20 $1,504,470 $376,120 $553,329 $75,084 $2,509,003 The DCV CBD assessments may increase for each individual parcel each year during the life of the DCV CBD, but not to exceed 7% per year, commensurate to special benefits received by each assessed parcel, and must be approved by the Owners’ Association Board of Directors, included in the Annual Report and adopted by the City of Chula Vista City Council. Any accrued interest and delinquent payments will be Page 298 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 17 expended within the budgeted categories. The Owners’ Association Board of the Directors (“Property Owners’ Association of the DCV CBD) shall determine the percentage increase, if any, to the annual assessment, not to exceed 7% per year. The Owners’ Association Executive Director shall communicate the annual increase to the City each year in which the DCV CBD operates at a time determined in the Administration Contract held between the Owners’ Association and the City of Chula Vista. No bonds are to be issued in conjunction with the proposed DCV CBD. Pursuant to the Ordinance, any funds remaining after the 20-Year term will be rolled over into the renewal budget or returned to stakeholders in accordance with the Ordinance. If the DCV CBD is terminated for any reason or disestablished, unencumbered/unexpended funds will be returned to the property owners in accordance with the Ordinance. Finding 3. From Section 4(a): “(Determine) the proportionate special benefit derived by each parcel in relationship to the entirety of the..........cost of public improvement(s) or the maintenance and operation expenses...........or the cost of the property related service being provided. Each identified assessed parcel within the DCV CBD will be assessed based on property characteristics unique only to that parcel. Based on the specific needs and corresponding nature of the program activities to be funded by the proposed DCV CBD (i.e. Civil Sidewalks-Safety-Cleanliness, District Identity- Placemaking, Administration and Contingency-Reserve), it is the opinion of this Assessment Engineer that the assessment factors on which to base assessment rates relate directly to the proportionate amount of building area, land area and street frontage of each parcel except as noted herein within one benefit zone. The calculated assessment rates are applied to the actual assessed factor quantities of each parcel and thereby are proportional to each and every other identified assessed parcel within the DCV CBD as a whole. Larger parcels and those with larger buildings and/or street frontage are projected to impact the demand for services and programs to a greater extent than smaller parcels or smaller buildings or street frontages and thus, are assigned a greater proportionate degree of assessment program and service costs . The proportionality is further achieved by setting targeted formula component weights for the respective parcel by parcel identified property attributes. The proportionate special benefit cost for each parcel has been calculated based on proportionate formula components and is listed in the Plan and this Report. The individual percentages (i.e. proportionate relationship to the total special benefit related program and activity costs) are computed by dividing the individual parcel assessment by the total special benefit program related costs. Finding 4. From Section 4(a): “No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel.” Not only are the proposed program costs reasonable due to the benefit of group purchasing and contracting which would be possible through the proposed DCV CBD, they are also considerably less than other options considered by the DCV CBD Formation Committee. The actual assessment rates for each parcel within the DCV CBD directly relate to the level of service and, in turn, special benefit to be conferred on each parcel based on the respective amount of building area, land area and street frontage of each parcel Page 299 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 18 except as noted herein within one benefit zone. Finding 5. From Section 4(a): “Parcels….....that are owned or used by any (public) agency shall not be exempt from assessment….......” Article XIIID states that “parcels within a District that are owned or used by any agency, the State of California or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly-owned parcels in fact receive no special benefit.” There are currently 27 public and/or tax exempt owned parcels within the boundaries of the proposed DCV CBD. Of these parcels, 21 are owned by the City of Chula Vista, 2 by the County of San Diego, 1 by Pacific Bell, 1 by Sweetwater Authority (water agency), 1 by Scripps Health and 1 by Sharp Healthcare. DCV CBD services are designed to improve the cleanliness and image of assessed publicly owned parcels and facilities for visitors, their employees, students and users of public facilities on publicly owned parcels within the DCV CBD by reducing litter and debris, deterring crime and improving their image, each considered detractions to employment, visitation and use of public facilities if not contained and properly managed. In turn, these services will serve to enhance the public purpose provided by public facilities and parcels within DCV CBD. It is the opinion of this Assessment Engineer that there is no clear and convincing evidence that any of these public owned and/or tax exempt parcels would not receive proportionate special benefits and thus, will not be exempt from assessments nor assessed differently than privately owned parcels. The Table below lists all publicly owned parcels within the proposed DCV CBD and their Year 1 assessment amounts: PUBLIC OR TAX EXEMPT OWNED PARCELS APN Legal Owner Site Street Year 1 Assessment % of Total 568-044-02-00 CITY OF CHULA VISTA 205 LANDIS AVE $ 700.00 0.10% 568-044-09-00 CITY OF CHULA VISTA 245 LANDIS AVE $ 588.00 0.08% 568-044-10-00 CITY OF CHULA VISTA 245 LANDIS AVE $ 1,400.00 0.20% 568-044-11-00 CITY OF CHULA VISTA 245 LANIS AVE $ 1,820.00 0.26% 568-044-18-00 CITY OF CHULA VISTA 226 THIRD AVE $ 1,816.60 0.26% 568-044-19-00 CITY OF CHULA VISTA 224 THIRD AVE $ 660.00 0.10% 568-071-18-00 CITY OF CHULA VISTA 248 CHURCH AVE $ 1,207.68 0.17% 568-071-19-00 CITY OF CHULA VISTA CHURCH AVE $ 876.48 0.13% 568-152-02-00 CITY OF CHULA VISTA 281 LANDIS AVE $ 700.00 0.10% 568-152-03-00 CITY OF CHULA VISTA 285 LANDIS AVE $ 700.00 0.10% 568-152-29-00 CITY OF CHULA VISTA LANDIS AVE $ 700.00 0.10% 568-152-32-00 CITY OF CHULA VISTA LANDIS AVE $ 3,368.48 0.49% 568-153-02-00 CITY OF CHULA VISTA 365 F ST $ 24,957.10 3.60% 568-162-08-00 CITY OF CHULA VISTA 281 CHURCH AVE $ 856.76 0.12% 568-162-09-00 CITY OF CHULA VISTA 287 CHURCH AVE $ 785.28 0.11% 568-270-29-00 CITY OF CHULA VISTA 340 F ST $ 35,839.76 5.17% 568-270-31-00 CITY OF CHULA VISTA 315 4TH AVE $ 31,023.48 4.47% 568-300-44-00 CITY OF CHULA VISTA 356 3RD AVE $ 3,643.84 0.53% 568-333-11-00 CITY OF CHULA VISTA 270 F ST $ 7,956.96 1.15% Page 300 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 19 568-350-02-00 CITY OF CHULA VISTA MADRONA AVE $ 907.60 0.13% 568-350-03-00 CITY OF CHULA VISTA MADRONA AVE $ 940.00 0.14% TOTAL $ 121,448.02 17.51% 573-100-38-00 COUNTY OF SAN DIEGO 590 3RD AVE $ 17,423.10 2.51% 573-100-39-00 COUNTY OF SAN DIEGO 500 3RD AVE $ 65,181.00 9.40% TOTAL $ 82,604.10 11.91% 568-410-37-00 PACIFIC BELL 420 3RD AVE $ 10,128.42 1.46% 568-450-72-00 SCRIPPS HEALTH 333 H ST $ 20,139.24 2.90% 573-040-19-00 SHARP HEALTHCARE 525 3RD AVE $ 5,620.00 0.81% 573-100-37-00 SWEETWATER AUTHORITY 505 GARRETT AVE $ 5,049.16 0.73% Finding 6. From Section 4(b): “All assessments must be supported by a detailed engineer’s report prepared by a registered professional engineer certified by the State of California”. This report serves as the “detailed engineer’s report” to support the benefit property assessments proposed to be levied within the proposed DCV CBD. Finding 7. From Section 4(c): “The amount of the proposed assessment for each parcel shall be calculated (along with) the total amount thereof chargeable to the entire district, the duration of such payments, the reason for such assessment and the basis upon which the amount of the proposed assessment was calculated.” The individual and total parcel assessments attributable to special property benefits are shown in Appendix 1 to the Plan and this Report. The proposed DCV CBD and resultant assessment levies will continue for 20 years unless disestablished. The reasons for the proposed assessments are outlined in Finding 2 above as well as in the Plan. The calculation basis of the proposed assessment is attributed to building area, land area and street frontage of each parcel except as noted herein within one benefit zone. Assessment Formula Methodology Step 1. Select “Benefit Unit(s)” Background – Generic Assessment Formula Development The method used to determine special benefits derived by each identified assessed property within a CBD begins with the selection of a suitable and tangible basic benefit unit. For property related services, such as those proposed in the DCV CBD, the benefit unit may be measured in building size in square feet, parcel land area in square feet or parcel street frontage in linear feet or any combination of these factors. Factor quantities for each parcel are then measured or otherwise obtained. From these figures, the amount of benefit units to be assigned to each property can be calculated. Special circumstances such as unique geography, land uses, development constraints etc. are carefully reviewed relative to specific programs and improvements to be funded by a CBD in order to determine any levels of different benefit that may apply on a parcel-by-parcel or categorical basis. Page 301 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 20 Based on the factors described above such as geography and nature of programs and activities proposed, an assessment formula is developed which is derived from a singular or composite benefit unit factor or factors. Within the assessment formula, different factors may be assigned different “weights” or percentage of values based on their relationship to programs/services to be funded. Next, all program and activity costs, including incidental costs, administration and ancillary program costs, are estimated. It is noted, as stipulated in Article XIIID Section 4(b) of the California Constitution, and now required of all property-based assessment districts, indirect or general benefit related costs may not be incorporated into the assessment formula and levied on the district properties; only direct or special” benefits related costs may be used. Indirect or general benefits, if any, must be identified and, if quantifiable, calculated and factored out of the assessment cost basis to produce a “net” cost figure. In addition, Article XIIID Section 4(b) of the California Constitution also no longer automatically exempts publicly owned property from being assessed unless the respective public agency can provide clear and convincing evidence that their property does not specially benefit from the programs and services to be funded by the proposed special assessments. If special ben efit is determined to be conferred upon such properties, they must be assessed in proportion to special benefits conferred in a manner similar to privately owned property assessments. (See pages 18-19 of this Report for discussion regarding publicly owned parcels within the DCV CBD). From the estimated program costs, the value of a benefit unit or “unit cost” can be computed by dividing the total amount of estimated program costs by the total number of benefit units. The amount of assessment for each parcel can be computed at this time by multiplying the Unit Cost times the number of Benefit Units per parcel. This is known as “spreading the assessment” or the “assessment spread” in that all costs are allocated proportionately or “spread” amongst all benefitting properties within the CBD. The method and basis of spreading program costs varies from one CBD to another based on local geographic conditions, types of programs and activities proposed, and size and development complexity of the district. CBDs may require secondary benefit zones to be identified to allow for a tiered assessment formula for variable or stepped-down benefits derived based on general land use differentials or levels of services required or programmed to be provided. DCV CBD Assessment Formula Based on the specific needs and corresponding nature of the program activities to be funded by the proposed DCV CBD (i.e. Civil Sidewalks-Safety-Cleanliness, District Identity–Placemaking, Administration and Contingency-Reserve) it is the opinion of this Assessment Engineer that the assessment factors on which to base assessment rates relate directly to the proportionate amount of building area, land area and street frontage of each parcel except as noted herein within one benefit zone. The “Benefit Units” will be expressed as a combined function of gross building square footage (Benefit Unit “A”), parcel land square footage (Benefit Unit “B”), street frontage (Benefit Unit “C”) and residential condominium interior building square footage (Benefit Unit “D”). Based on the shape of the proposed DCV CBD, as well as the nature of the work program, it is determined that all identified properties will gain a direct and proportionate degree of special benefit based on the respective amount of building area, land area and street frontage of each parcel except as noted herein within one benefit zone. It is noted and explained in more detail on page 21 under “Special Assessment Circumstances” that residential condominiums will be assessed based only on interior building pad square footage of each unit. Page 302 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 21 The interaction of building area, land area and street frontage quantities is a common method of fairly and equitably spreading special benefit costs to the beneficiaries of CBD funded services, programs and improvements. These factors directly relate to the proportion of special benefit each assessed parcel will receive from DCV CBD funded activities, programs and improvements. Building Area (Benefit Units A & D) is a direct measure of the static utilization of each parcel and its corresponding impact or draw on DCV CBD funded activities. The combined targeted revenue weight of Building Area (Units A & D) is about 40%. Units A and D will actually generate 42,1651% of the overall assessment revenue Land Area (Benefit Unit B) is a direct measure of the current and future development capacity of each parcel and its corresponding impact or draw on DCV CBD funded activities. The targeted revenue weight of Land Area (Unit B) is about 40%. Unit B will actually generate 39.7907% of the overall assessment revenue. Street Frontage (Benefit Unit C) is a direct measure of each parcel’s corresponding impact or draw on DCV CBD funded activities. The targeted revenue weight of Street Frontage (Unit C) is about 20%. Unit C will actually generate 18.0442% of the overall assessment revenue. Special Assessment Circumstances 1. Residential Condominiums (future) Residential condominium parcels (which are zoned mixed-use) will be assessed as a separate category. It is the opinion of this Assessment Engineer that residential condominium parcels will proportionately specially benefit from DCV CBD funded programs and activities, but differently than commercial parcels and other residential parcels with multiple units on them. As such, based on the development configuration of such units which are generally multi floor buildings with no direct land or street frontage, the assessments for residential condominiums shall be assessed based solely on the internal building area of each residential condominium unit at the rate of $0.14 per square foot of internal building pad area, the same building area rate of all other land uses, subject to any approved annual rate increases. It is noted that downtown mixed-use zoning typically allows residential uses such as apartments or condominiums but require a certain amount of commercial ground floor space and units which, in turn, are assessed on a pro-rated basis for parcel land area and street frontage (see below for mixed-use condominium assessment methodology). 2. Mixed-Use Condominiums Ground floor commercial condominiums within the DCV CBD shall be assessed based on actual land area covered, condominium building area and direct street frontage for each unit. Because such uses are typically developed as part of a multi-floor mixed-use complex, special methodologies are needed to address the levy of assessments on such land uses as follows: Multi-Floor Commercial Only Condominiums (Upper Floors) Building area assessed at respective building area rate and pro-rated for land area and street frontage based on building area quantities of the whole complex Multi-Floor Mixed-Use Condominiums Page 303 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 22 Commercial condo (See above for ground floor and upper floor locations) Residential condo (See # 1 above) 3. Single Family Dwellings (Non-Condominiums) There are a few remaining single family occupied dwelling units with the proposed DCV CBD. It is the opinion of this Assessment Engineer that these parcels will not specially benefit from the proposed activities and improvements to be funded by the DCV CBD and thus will not be assessed. In the future, should these uses change and/or new developments occur on them, they will then be assessed similar to other parcels and land uses within the DCV CBD. Changes to Building and/or Parcel Size Any changes in building or parcel size as a result of new construction, demolitions, land adjustments including but not limited to lot splits, consolidations, subdivisions, street dedications, right of way setbacks shall have their assessment adjusted upon final City approval of such building and/or parcel adjustments. Other Future Development Other than future maximum rates and the assessment methodology delineated in this Report, future assessments may increase for any given parcel if such an increase is attributable to events other than an increased rate or revised methodology, such as a change in the density, intensity, or nature of the use of land. Any change in assessment formula methodology or rates other than as stipulated in this Report would require a new Article XIIID ballot procedure in order to approve any such changes. Step 2. Quantify Total Basic Benefit Units Considering all identified specially benefiting parcels within the DCV CBD and their respective assessable benefit units, the cumulative quantities by factor and zone are shown in the following Table: Year 1 – 2026 - Assessable Benefit Units BLDG AREA (SF) LAND AREA SF) STREET FRONTAGE LF) R-CONDO BLDG AREA SF) OF ASSESSABLE PARCELS 2,089,465 3,450,661 31,296 0 253 Considering all identified specially benefiting parcels within the DCV CBD and their respective assessable benefit units, the cumulative assessment revenues by factor are shown in the following Table: Year 1 - Assessment Revenue BLDG ASSMT $ LAND ASSMT $ STREET FRONTAGE ASSMT REVENUE R-CONDO BLDG ASSMT REVENUE TOTAL ASSMT REVENUE 292,525.10 $276,052.88 $125,184.00 $0.00 $693,761.98 42.1651% 39.7907% 18.0442% 0.0000% 100.00% Page 304 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 23 Step 3. Calculate Benefit Units for Each Property. The number of Benefit Units for each identified benefiting parcel within the proposed DCV CBD was computed from data extracted from County Assessor records and maps. These data sources delineate current land uses, property areas and dimensions of record for each tax parcel. While it is understood that this data does not represent legal field survey measurements or detailed title search of recorded land subdivision maps or building records, it does provide an acceptable basis for the purpose of calculating property-based assessments. All respective property data being used for assessment computations will be provided to each property owner in the DCV CBD for their review. If a property owner believes there is an error on a parcel’s assessed quantities, the DCV CBD may confirm the data with the San Diego County Assessor’s office. If DCV CBD data matches Assessor’s data, the property owner may opt to work with the Assessor’s office to correct the data so that the DCV CBD assessment may be corrected. Step 4. Determine Assessment Formula In the opinion of this Assessment Engineer, the general assessment formula for the proposed DCV CBD as shown in the Year 1 Assessment Rate Table above is as follows: Assessment = Building Area (Unit A) Sq Ft x Unit A Rate Land Area (Unit B) Sq Ft x Unit B Rate, plus Street Frontage (Unit C) Lin Ft x Unit C Rate OR Residential Condominium Building Area (Unit D) Sq Ft x Unit D Rate Assessment Formula Unit Rates Based on figures from the Assessable Benefit Units Table above, the assessment rates for each factor and zone are shown as calculated below: Building Area Rate (Unit A) 693,761.98 x 42.1651%) / 2,089,465 assessable building area units = $0.14/sq ft building area Land Area Rate Rate B (Unit B) 693,761.98 x 39.7907%) / 3,450,661 assessable land area units = $0.08/sq ft land area Street Frontage Rate (Unit C) 693,761.98 x 18.0442%) / 31,296 assessable street frontage units = $4.00/ LF street frontage Condo Building Area Rate (Unit D) Set at $0.14/sq ft of interior unit building area Page 305 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 24 YEAR 1 Assessment Rates BLDG ASSMT RATE SF) LAND ASSMT RATE SF ) STREET FRONTAGE ASSMT RATE LF) R-CONDO BLDG ASSMT RATE 0.14 $0.08 $4.00 $0.14 The complete Year 1 assessment roll of all parcels to be assessed by the DCV CBD is included in this Report as Appendix I. Step 5. Estimate Total DCV CBD Costs The total projected 20-year DCV CBD special benefit costs are shown in the Table on page 16 of this Report assuming a maximum 7% increase per year. Step 6. Separate General Benefits from Special Benefits and Related Costs (Article XIIID) Total Year 1 special and districtwide general benefit related costs are estimated at $693,762. Districtwide general benefits are factored at 2.0% of the total benefit value (see Finding 2 of this Report) with special benefits set at 98.0%. Article XIIID limits the levy of property assessments to costs attributed to special benefits only. The 2.0% general benefit value is computed to be $14,158 with a resultant 98.0% special benefit limit computed at $693,762. Based on current property data and land uses, this is the maximum amount of Year 1 revenue that can be derived from property assessments from the subject District. All program costs associated with district-wide and site/activity specific general benefits will be derived from sources other than DCV CBD assessments. Step 7. Calculate “Basic Unit Cost” With a YR 1 assessment revenue portion of the budget set at $693,762 (special benefit only), the Unit Costs rates) are shown earlier in Step 4. The DCV CBD is proposed for a 20-year term. An annual inflationary assessment rate increase of up to 7%, commensurate to special benefits received by each assessed parcel, may be imposed for future year assessments, on approval by the DCV CBD Property Owner’s Association. The maximum assessment rates for years 1-20 are shown in the Table below. The assessment rates listed constitute the maximum assessment rates that may be imposed for each year of the 20-year DCV CBD term. DCV CBD – Maximum Assessment Rates - Years 1-20 Includes a 7%/Yr. Max Increase) YEAR BLDG ASSMT RATE SF) LAND ASSMT RATE SF ) FRONTAGE ASSMT RATE LF) R-CONDO BLDG ASSMT RATE SF) 1 $0.1400 $0.0800 $4.0000 $0.1400 2 $0.1498 $0.0856 $4.3480 $0.1522 Page 306 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 25 3 $0.1603 $0.0916 $4.7263 $0.1654 4 $0.1715 $0.0980 $5.1375 $0.1798 5 $0.1835 $0.1049 $5.5845 $0.1954 6 $0.1963 $0.1122 $6.0704 $0.2124 7 $0.2100 $0.1201 $6.5985 $0.2309 8 $0.2247 $0.1285 $7.1726 $0.2510 9 $0.2404 $0.1375 $7.7966 $0.2728 10 $0.2572 $0.1471 $8.4749 $0.2965 11 $0.2752 $0.1574 $9.2122 $0.3223 12 $0.2945 $0.1684 $10.0137 $0.3503 13 $0.3151 $0.1802 $10.8849 $0.3808 14 $0.3372 $0.1928 $11.8319 $0.4139 15 $0.3608 $0.2063 $12.8613 $0.4499 16 $0.3861 $0.2207 $13.9802 $0.4890 17 $0.4131 $0.2361 $15.1965 $0.5315 18 $0.4420 $0.2526 $16.5186 $0.5777 19 $0.4729 $0.2703 $17.9557 $0.6280 20 $0.5060 $0.2892 $19.5178 $0.6826 Step 8. Spread the Assessments The resultant assessment spread calculation results for each parcel within the DCV CBD are shown in the Plan and this Report and were determined by applying the DCV CBD assessment formula to each identified benefiting property. Miscellaneous DCV CBD Provisions Time and Manner of Collecting Assessments: Assessments shall be collected at the same time and in the same manner as ad valorum taxes paid to San Diego County. The DCV CBD assessments shall appear as a separate line item on the property tax bills issued by San Diego County. The City of Chula Vista is authorized to collect any assessments not placed on the County tax rolls, or to place assessments, unpaid delinquent assessments, or penalties on the County tax rolls as appropriate to implement the Plan. Bonds: No bonds are to be issued in conjunction with the proposed DCV CBD. Duration: As allowed by the Ordinance, the DCV CBD will have a 20-year operation term, beginning January 1, 2027 and ending December 31, 2046. At that time, the DCV CBD may be renewed again in accordance with the Ordinance. Page 307 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 26 APPENDIX 1 DCV CBD YR 1 ASSESSMENT ROLL Page 308 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 27 APN Year 1 Assessment 566-232-10-00 $6,549.52 566-232-13-00 $3,300.16 566-232-17-00 $7,056.00 566-232-18-00 $400.00 566-240-11-00 $1,829.98 566-240-28-00 $1,742.00 566-240-29-00 $3,247.44 566-240-30-00 $7,847.84 568-043-14-00 $9,656.00 568-043-15-00 $827.12 568-043-16-00 $1,076.32 568-043-17-00 $881.72 568-043-18-00 $829.92 568-043-20-00 $916.16 568-043-21-00 $826.84 568-043-22-00 $2,591.60 568-044-01-00 $1,760.00 568-044-02-00 $700.00 568-044-03-00 $918.68 568-044-04-00 $871.36 568-044-05-00 $1,036.00 568-044-06-00 $993.86 568-044-07-00 $852.04 568-044-08-00 $1,196.16 568-044-09-00 $588.00 568-044-10-00 $1,400.00 568-044-11-00 $1,820.00 568-044-12-00 $1,775.60 568-044-13-00 $1,166.36 568-044-14-00 $1,281.60 568-044-15-00 $1,311.00 568-044-16-00 $1,079.16 568-044-17-00 $680.76 568-044-18-00 $1,816.60 568-044-19-00 $660.00 568-044-20-00 $1,092.60 568-044-21-00 $981.44 568-044-22-00 $1,304.00 568-044-23-00 $1,878.30 568-071-01-00 $1,786.48 568-071-02-00 $1,342.52 568-071-03-00 $930.08 568-071-04-00 $646.76 568-071-05-00 $2,840.76 568-071-06-00 $597.12 568-071-07-00 $594.00 568-071-08-00 $1,073.02 568-071-09-00 $663.52 568-071-12-00 $1,058.88 568-071-13-00 $1,045.62 568-071-14-00 $1,278.08 568-071-15-00 $1,298.18 568-071-16-00 $2,922.48 568-071-17-00 $1,868.06 568-071-18-00 $1,207.68 568-071-19-00 $876.48 568-071-20-00 $1,120.68 568-071-23-00 $987.40 568-071-24-00 $2,210.18 568-071-25-00 $5,466.02 568-072-03-00 $1,008.50 568-072-04-00 $1,634.44 568-072-05-00 $1,049.52 568-072-06-00 $813.36 568-072-08-00 $1,278.34 568-072-09-00 $1,346.10 568-072-10-00 $1,029.56 568-072-11-00 $1,223.32 568-072-22-00 $1,859.92 568-072-23-00 $1,837.06 568-072-26-00 $1,262.56 568-072-28-00 $506.88 568-151-01-01 $324.08 568-151-01-02 $356.28 568-151-01-03 $345.64 568-151-01-04 $351.52 568-151-01-05 $308.40 568-151-01-06 $349.84 568-151-01-07 $383.16 568-151-01-08 $365.94 568-151-01-09 $365.94 568-151-01-10 $414.52 568-151-01-11 $360.62 568-151-01-12 $429.64 568-151-01-13 $358.80 568-151-01-14 $374.48 568-151-01-15 $321.28 568-151-01-16 $364.68 568-151-01-17 $371.96 568-151-01-18 $383.16 568-151-01-19 $322.68 568-151-01-20 $388.90 568-151-01-21 $426.98 568-151-02-00 $729.12 568-151-03-00 $1,201.48 568-151-08-00 $896.28 568-151-10-00 $1,160.60 568-151-11-00 $1,321.68 568-151-22-00 $7,233.48 568-151-23-00 $3,034.98 568-152-02-00 $700.00 Page 309 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 28 568-152-03-00 $700.00 568-152-04-00 $1,981.04 568-152-06-00 $1,319.00 568-152-07-00 $973.70 568-152-08-00 $1,428.00 568-152-09-00 $1,260.00 568-152-10-00 $787.50 568-152-11-00 $1,012.20 568-152-13-00 $1,203.02 568-152-16-00 $1,538.46 568-152-17-00 $1,629.70 568-152-18-00 $1,317.60 568-152-19-00 $1,300.00 568-152-20-00 $1,142.22 568-152-22-00 $3,480.70 568-152-28-00 $2,520.30 568-152-29-00 $700.00 568-152-30-00 $1,042.94 568-152-31-00 $1,280.70 568-152-32-00 $3,368.48 568-153-02-00 $24,957.10 568-161-03-00 $1,601.20 568-161-04-00 $2,101.20 568-161-05-00 $524.22 568-161-06-00 $714.72 568-161-07-00 $672.00 568-161-09-00 $648.00 568-161-10-00 $1,188.00 568-161-11-00 $1,328.00 568-161-12-00 $1,377.00 568-161-13-00 $688.50 568-161-22-00 $1,149.92 568-161-23-00 $990.04 568-161-24-00 $990.04 568-161-25-00 $8,815.20 568-161-26-00 $2,044.84 568-161-27-00 $664.00 568-161-28-00 $1,720.28 568-161-34-00 $4,936.74 568-161-35-00 $1,749.68 568-161-36-00 $666.80 568-161-37-00 $594.00 568-161-38-00 $3,125.94 568-162-01-00 $1,649.04 568-162-02-00 $914.02 568-162-03-00 $1,054.86 568-162-05-00 $1,370.00 568-162-06-00 $1,144.18 568-162-07-00 $1,072.22 568-162-08-00 $856.76 568-162-09-00 $785.28 568-162-10-00 $924.42 568-162-11-00 $2,206.32 568-270-20-00 $3,276.02 568-270-21-00 $14,993.62 568-270-22-00 $6,949.92 568-270-23-00 $2,709.44 568-270-27-00 $2,513.20 568-270-29-00 $35,839.76 568-270-30-00 $3,786.26 568-270-31-00 $31,023.48 568-300-44-00 $3,643.84 568-300-46-00 $7,167.44 568-333-01-00 $3,211.52 568-333-02-00 $657.00 568-333-03-00 $657.00 568-333-04-00 $1,282.20 568-333-05-00 $828.00 568-333-06-00 $572.92 568-333-07-00 $578.50 568-333-08-00 $1,169.40 568-333-09-00 $3,509.60 568-333-10-00 $3,892.32 568-333-11-00 $7,956.96 568-334-01-00 $3,116.10 568-334-02-00 $687.00 568-334-03-00 $660.50 568-334-04-00 $2,723.34 568-334-16-00 $7,412.64 568-350-02-00 $907.60 568-350-03-00 $940.00 568-350-06-00 $1,569.56 568-350-07-00 $1,910.04 568-350-16-00 $1,146.30 568-350-19-00 $2,051.36 568-350-21-00 $1,045.06 568-350-23-00 $408.64 568-350-37-00 $3,321.20 568-350-39-00 $1,660.40 568-350-40-00 $1,391.46 568-350-43-00 $2,047.90 568-350-45-00 $379.56 568-350-48-00 $3,564.00 568-351-01-00 $1,132.00 Page 310 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 29 568-351-02-00 $1,142.58 568-351-03-00 $1,731.58 568-351-04-00 $1,214.40 568-351-05-00 $350.00 568-351-06-00 $1,750.00 568-410-20-00 $3,801.20 568-410-29-00 $2,571.36 568-410-37-00 $10,128.42 568-410-62-00 $2,725.66 568-420-01-00 $2,371.50 568-420-02-00 $907.52 568-420-03-00 $1,045.00 568-420-04-00 $517.74 568-420-05-00 $447.60 568-420-06-00 $931.20 568-420-14-00 $2,220.00 568-420-15-00 $2,328.40 568-420-31-00 $792.00 568-450-28-00 $1,433.08 568-450-29-00 $974.16 568-450-30-00 $977.24 568-450-31-00 $1,308.36 568-450-32-00 $1,066.20 568-450-33-00 $5,586.40 568-450-50-00 $1,267.12 568-450-51-00 $5,105.36 568-450-55-00 $3,983.10 568-450-66-00 $20,965.34 568-450-67-00 $25,275.36 568-450-68-00 $1,971.60 568-450-70-00 $4,224.16 568-450-72-00 $20,139.24 568-511-21-00 $2,706.98 568-512-37-00 $1,596.00 568-512-39-00 $2,000.00 568-512-46-00 $4,459.04 573-010-14-00 $1,550.94 573-010-15-00 $845.60 573-010-16-00 $2,803.60 573-010-21-00 $3,083.68 573-010-23-00 $4,354.34 573-040-01-00 $3,014.24 573-040-02-00 $600.00 573-040-03-00 $540.00 573-040-04-00 $624.00 573-040-19-00 $5,620.00 573-061-01-00 $1,291.90 573-062-01-00 $1,150.88 573-062-25-00 $1,194.08 573-063-01-00 $1,450.00 573-063-08-00 $2,219.84 573-100-37-00 $5,049.16 573-100-38-00 $17,423.10 573-100-39-00 $65,181.00 573-110-01-00 $1,197.98 573-110-02-00 $1,013.60 573-110-03-00 $938.28 573-110-24-00 $3,745.90 Page 311 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 30 APPENDIX 2 DCV CBD BOUNDARY MAP Page 312 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 31 Page 313 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda From: Downtown Chula Vista <info@downtownchulavista.com> Sent: Tuesday, September 1, 2026 9:30 AM To: CityClerk <CityClerk@chulavistaca.gov> Cc: David Graham <dgraham@chulavistaca.gov> Subject: DCVA Final Petition Summary Report Package 9.1.26 WARNING - This email originated from outside the City of Chula Vista. Do not click any links and do not open attachments unless you can confirm the sender. PLEASE REPORT SUSPICIOUS EMAILS BY USING THE PHISH ALERT REPORT BUTTON or to reportphishing@chulavistaca.gov Good morning, Please find the final petition report package attached for filing with the City Clerk. This is regarding Item 7.2 on City Council Agenda this evening. Thank you, DOMINIC LIMANDRI Downtown Chula Vista Association 353 Third Avenue Chula Vista, CA 91910 619-422-1982 Website: DowntownChulaVista.com Facebook: DowntownChulaVista Instagram: DowntownChulaVista TikTok: DowntownChulaVista Twitter: DowntownChula DowntownChulaVista Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 314 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Where Culture & Community Meet Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 315 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda September 1st, 2026 To whom it may concern, My name is Dominic LiMandri, District Manager of the Greater Third Avenue Improvement Association, dba Downtown Chula Vista Association, the assigned owner’s association currently administering the Downtown Chula Vista Property-Based Business Improvement District. I hereby certify that the petition of property owners included a summary of the Management District Plan, which included, at a minimum: 1. A map showing the boundaries of the district. 2. Information specifying where the complete Management District Plan can be obtained. 3. Information specifying that the complete Management District Plan shall be furnished upon request. Sincerely, Dominic LiMandri District Manager Downtown Chula Vista Association (DCVA) Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 316 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Chula Vista Petition Report 8/31/2026 | 5:49:29 PM 568-071-01-00 201 3RD 201 THIRD AVENUE A C LLC 201 3RD AVE $1,786.48 0.26%Supportive 568-071-25-00 230 CHURC 230 CHURCH INVESTORS LLC 230 CHURCH AVE $5,466.02 0.79%Supportive 568-270-22-00 3RD AVE A V G CHULA VISTA L L C 320 3RD AVE $6,949.92 1.00%Supportive 568-350-19-00 397 3RD ANTHONY J RASO 397 3RD AVE $2,051.36 0.30%Supportive 568-350-45-00 393 3RD ANTHONY J RASO 393 3RD AVE $379.56 0.05%Supportive 568-350-48-00 287 G ST ANTHONY J RASO 287 G ST $3,564.00 0.51%Supportive 568-350-39-00 357 3RD ATTWOOD DEBORAH D TR 357 3RD AVE $1,660.40 0.24%Supportive 568-350-40-00 361 3RD ATTWOOD DEBORAH D TR 361 3RD AVE $1,391.46 0.20%Supportive 568-161-25-00 252 CHURC BACKHOUSE INVESTORS LLC 252 CHURCH AVE $8,815.20 1.27%Supportive 568-072-22-00 245 CHURC BALBOA INVESTMENT GROUP IV LLC 245 CHURCH AVE $1,859.92 0.27%Supportive 568-044-13-00 242 3RD BITAR MARGARET R T TRUST 242 3RD AVE $1,166.36 0.17%Supportive 568-450-51-00 363 H ST CARMEL OAKS DEL MAR L L C 363 H ST $5,105.36 0.74%Supportive 568-450-50-00 355 H ST CARMEL OAKS DEL MAR L L C 355 H ST $1,267.12 0.18%Supportive 568-151-01-04 345 F ST CHRISTOPHER OSWALD LLC 345 F ST #130 $351.52 0.05%Supportive 568-334-16-00 288 CENTE CHULI FLATS AT CENTER LLC 288 CENTER ST $7,412.64 1.07%Supportive 568-151-01-16 345 F ST COMPTON FAMILY TRUST 345 F ST #210 $364.68 0.05%Supportive 568-151-01-15 345 F ST COMPTON FAMILY TRUST 345 F ST #215 $321.28 0.05%Supportive 573-100-38-00 590 3RD COUNTY OF SAN DIEGO 590 3RD AVE $17,423.10 2.51%Supportive 573-100-39-00 500 3RD COUNTY OF SAN DIEGO 500 3RD AVE $65,181.00 9.40%Supportive 568-410-62-00 406 THIRD COX COMMUNICATIONS SAN DIEGO INC 406 THIRD AVE $2,725.66 0.39%Supportive 568-270-21-00 310 3RD E A S L L C 310 3RD AVE $14,993.62 2.16%Supportive 568-300-46-00 380 3RD E T P LLC 380 3RD AVE $7,167.44 1.03%Supportive 568-333-01-00 301 3RD EVANS ROBERT & MARILYN FAMILY TR 301 3RD AVE $3,211.52 0.46%Supportive 568-450-55-00 399 H ST FIRST CITIZENS BANK & TRUST COMPANY 399 H ST $3,983.10 0.57%Supportive 568-420-01-00 403 3RD G L S 403 3RD AVE $2,371.50 0.34%Supportive 568-161-35-00 299 3RD GARCIA FAMILY TRUST 299 3RD AVE $1,749.68 0.25%Supportive 568-450-68-00 337 H ST GATEWAY CHULA VISTA 3 L L C 337 H ST $1,971.60 0.28%Supportive 568-450-70-00 353 H ST GATEWAY CHULA VISTA 3 L L C 353 H ST $4,224.16 0.61%Supportive 568-071-06-00 222 CHURC GLADEHILL CAPITAL GROUP 222 CHURCH AVE $597.12 0.09%Supportive 568-071-07-00 GLADEHILL CAPITAL GROUP CHURCH AVE $594.00 0.09%Supportive 568-071-13-00 227 3RD GREEN LIVING TRUST 227 3RD AVE $1,045.62 0.15%Supportive 568-151-01-17 F ST 200 HUANG MARK WEI & KIMBERLY A LIVING TR F ST #200 $371.96 0.05%Supportive 568-044-05-00 217 LANDI JOHNSTON LARRY R TRUST 217 LANDIS AVE $1,036.00 0.15%Supportive 568-420-14-00 435 3RD LAKESHORE NSLU TIC LLC 435 3RD AVE $2,220.00 0.32%Supportive 568-420-15-00 445 3RD LAKESHORE NSLU TIC LLC 445 3RD AVE $2,328.40 0.34%Supportive 568-420-31-00 427 3RD LAKESHORE NSLU TIC LLC 427 3RD AVE $792.00 0.11%Supportive 568-044-08-00 229 LANDI LANDIS ARMS L L C 229 LANDIS AVE $1,196.16 0.17%Supportive 568-161-03-00 259 3RD MACMILLAN FAMILY TRUST 259 3RD AVE $1,601.20 0.23%Supportive 568-450-67-00 371 H ST P G S PARTNERS LLC 371 H ST $25,275.36 3.64%Supportive 568-043-21-00 210 LANDI RAMIREZ REV EXEMPTION 2014 TR 210 LANDIS AVE $826.84 0.12%Supportive 568-350-43-00 373 3RD RASO CHILDRENS TRUST 373 3RD AVE $2,047.90 0.30%Supportive 568-161-37-00 271 3RD ROSSI FAMILY TRUST 271 1/2 & 271 3RD AVE 594.00 0.09%Supportive New City America, Inc, 2011 West California Strret San Diego CA 92101 888-356-2726 mail@newcityamerica.com Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 317 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Chula Vista Petition Report 8/31/2026 | 5:49:29 PM 568-512-37-00 3RD AVE SAINT ROSE OF LIMA CATHOLIC PARISH IN CV 3RD AVE $1,596.00 0.23%Supportive 568-512-39-00 ALVAR ADO SAINT ROSE OF LIMA CATHOLIC PARISH IN CV ALVARADO ST #1 2 2,000.00 0.29%Supportive 568-512-46-00 3RD AVE SAINT ROSE OF LIMA CATHOLIC PARISH IN CV 3RD AVE $4,459.04 0.64%Supportive 568-351-02-00 353 3RD SAN DIEGO BAJA RADIO ADVERTISING LTD 353 3RD AVE $1,142.58 0.16%Supportive 568-071-14-00 231 3RD SEV HOLDINGS LLC 231 3RD AVE $1,278.08 0.18%Supportive 568-410-29-00 416 3RD SOLEDAD ROQUE 416 3RD AVE $2,571.36 0.37%Supportive 573-100-37-00 505 GARRE SWEETWATER AUTHORITY 505 GARRETT AVE 5,049.16 0.73%Supportive 568-152-20-00 256 3RD THIRD AVE COMMERCIAL HOLDINGS LLC 256 3RD AVE $1,142.22 0.16%Supportive 568-151-01-13 345 F ST WARWICK INVESTMENTS L P 345 F ST #230 $358.80 0.05%Supportive 568-350-06-00 278 MADR WARWICK INVESTMENTS L P 278 MADRONA ST 1,569.56 0.23%Supportive 34.11%$236,609.02TOTAL: New City America, Inc, 2011 West California Strret San Diego CA 92101 888-356-2726 mail@newcityamerica.com Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 318 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda ETITION TO ESTABLISH THE DOWNTOWN CHULA VISTA COMMUNITY BENEFIT DISTRICT Prepared pursuant to the City of Chula Vista's Community Benefit Ordinance,Chapter 5.14 of the Chula Vista Municipal Code and the Property Business Improvement District Act,Section 36600 of the California Streets and Highway Code. Legal Owner:201 THIRD AVENUE A C LLC Owner %of Total Assessment:0.22% APN 568-071-01-00 Site Address 201 3RD AVE Proposed Assessment 1,786.48 1,786.48 Percent 0.22% 0.22%TOTALS: Yes,I endorse the Downtown Chula Vista Management District Plan for 2027. STATEMENT OF AUTHORITY TO SIGN THIS PETITION -(Must be completed by petition signer) Od(/'l/tlécyl PRINT NAME CLEARLY hereby certify (or declare)under penalty of perjury under the laws of the State of California that I am the owner,or the authorized representative of the owner,of the property listed above and have the authority to execute this petition with respect to that property.This statement is true,correct and comple t Petitioner Signature: y knowledge as of this date S/19st Pl ase Sign and Return by May 29,2026. Please em .fo@downtownchulavista.com or FAX to (888)356-2726 or Mail to:Downtown Chula Vista Association 353 Third Avenue,Chula Vista,CA 91910 For more information:(619)422-1982 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 319 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda UPLICATE PETITION TO ESTABLISH THE DOWNTOWN CHULA VISTA COMMUNITY BENEFIT DISTRICT Prepared pursuant to the City of Chula Vista's Community Benefit Ordinance,Chapter 5.14 of the Chula Vista Municipal Code and the Property Business Improvement District Act,Secåon 36600 of the California Streets and Highway Code. Legal owner:230 CHURCH INVESTORS LLC Owner %of Total Assessment:0.67% P-.EQQQ.5.e.d-Asesm.2Lt 568-071-25-00 230 CHURCH AVE $5,466.02 5,466.02 P-e.cgenr 0.67% 0.67%TOTALS: Yes,I endorse the Downtown Chula Vista Management District Plan for 2027. STATEMENT OF AUTHORITY TO SIGN THIS PETITION •(Must be completed by petition signer) hereby certify (or declare)under penalty of perjury PRINT CLEARLY under the laws of the State of California that I am the owner,or the authorized representative of the owner,of the property listed above and have the auth ty to execute this petition with respect to that property.This statement is true,correct and complete to the best o y kno dge as of this date Petitioner Signature: Please Sign and Return by May 29,2026. Please email:info@downtownchulavista.com or FAX to (888)356-2726 or Mail to:Downtown Chula Vista Association 353 Third Avenue.Chula Vista,CA 91910 For more information:(619)422-1982 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 320 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda UPLICATE PETITION TO ESTABLISH THE DOWNTOWN CHULA VISTA COMMUNITY BENEFIT DISTRICT Prepared pursuant to the City of Chula Vista's Community Benefit Ordinance,Chapter 5.14 of the Chula Vista Municipal Code and the Property Business Improvement District Act,Section 36600 of the California Streets and Highway Code. Legal Owner:AV G CHULA VISTA L LC Owner %of Total Assessment:0.85% 568-270-22-00 it Addr 320 3RD AVE proposed Assessment 6,949.92 6,949.92 0.85% 0.85%TOTALS: Yes,I endorse the Downtown Chula Vista Management District Plan for 2027. STATEMENT OF AUTHORITY TO SIGN THIS PETITION -(Must be completed by petition signer) hereby certify (or declare)under penalty of perjury PRINT NAME CLEARLY under the laws of the State of California that I am the owner, or the authorized representative of the owner,of the property listed above and have the u ori to execute this petiti mwith respect to that property.This statement is this date 7 /17 /true,correct and complete to t b o y knowled Petitioner Signature: P ease Sign and Return by May 29,2026. Please email'nfo@downtownchulavista.com or FAX to (888)356-2726 or Mail to:Downtown Chula Vista Association 353 Third Avenue.Chula Vista,CA 91910 For more information:(6 19)422-1982 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 321 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda UPLICATE PETITION TO ESTABLISH THE DOWNTOWN CHULA VISTA COMMUNITY BENEFIT DISTRICT Prepared pursuant to the City of Chula Vista's Community Benefit Ordinance,Chapter 5.14 of the Chula Vista Municipal Code and the Property Business Improvement District Act,Section 36600 of the Califomia Streets and Highway Code. Legal Owner:ANTHONY J RASO Owner %of Total Assessment:0.73% 568-350-19-00 568-350-45-00 568-350-48-00 Site Address 397 3RD AVE 393 3RD AVE 287 G ST Prooosed Assessment 2,051.36 379.56 3,564.00 5,994.92 percent 0.25% 0.05% 0.43% 0.73%TOTALS: Yes,I endorse the Downtown Chula Vista Management District Plan for 2027. STATEMENT OF AUTHORITY TO SIGN THIS PETITION-(Mustbe completed by petition signer) hereby certify (or declare)under penalty of perjury PRINT NA CLEARLY under the laws of the State of California that I am the owner,or the authorized representative of the owner,of the property listed above and have the authority to execute this petition with respect to that propert .This statement is X/17 /true,correct and complete to the best of my knowledge as of this date Petitioner Signature: Please Sign and Return by May 29,2026. Please email:info@downtownchulavista.com or FAX to (888)356-2726 or Mail to:Downtown Chula Vista Association 353 Third Avenue,Chula Vista,CA 91910 For more information:(619)422-1982 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 322 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda ETITION TO ESTABLISH THE DOWNTOWN CHULA VISTA COMMUNITY BENEFIT DISTRICT Prepared pursuant to the City ofChula VisWs Community Benefit Ordinance,Chapter 5.14 of the Chula Vista Municipal Code and the Property Business Impovement Distäct Act, S9GtIon 36600 of the Califomiä Streets and Highway Code, Legal owner:ATTWOOD DEBORAH D TR Owner %of Total Assessment:0.38% proposed Assessmeng 568-350-39-00 568-350-40-00 Site Address 357 3RD AVE 3613RD AVE 1,660.40 1,391.46 3,051.86 Percent 0.21% 0.17% 0.38%TOTALS: M/Yes,I endorse the Downtown Chula Vista Management District Plan for 2027. STATEMENT OF AUTHORITY TO SIGN THIS PETITION -(Must be completed by petition signer) hereby certify (or declare)under penalty of perjury PRINT NAME CLEARLY under the laws of the State of California that I am the owner,or the authorized representative of the owner,of the property listed above and have the authority to execute this petition with respect to that property.This statement is true,correct and complet to the best of y knowled e as of date /10 / Petitioner Signature: Please Sign and Return by May 29,2026. Please email:info@downtownchulavista.com or FAX to (888)356-2726 or Mail to:Downtown Chula Vista Association 353 Third Avenue,Chula Vista,CA 91910 For more information:(6 19)422-1982 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 323 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda UPLICATE PETITION TO ESTABLISH THE DOWNTOWN CHULA VISTA COMMUNITY BENEFIT DISTRICT Prepared pursuant to the City of Chula Vista's Community Benefit Ordinance,Chapter 5.14 of the Chula Vista Municipal Code and the Propeny Business Improvement Distnct Act,Secåon 36600 ofthe Califomla Streets and Highway Code. Legal Owner: BACKHOUSE INVESTORS LLC 252 CHURCH AVE Owner %of Total Assessment:1.07% Prooosed Assessment 8,815.20 8,815.20 1.07% 1.07%TOTALS: Yes,I endorse the Downtown Chula Vista Management District Plan for 2027. STATEMENT OF AUTHORITY TO SIGN THIS PETITION -(Must be completed by petition signer) hereby certify (or declare)under penalty of perjury PRINT NAME CLEARLY under the laws of the State of California that I am the owner,or the authorized representative of the owner,of the property listed above and have the authority to xecute this petition with respect to that property.This statement is true,correct and complete to the best of myk wledge as of this date //-2.4— Petitioner Signature: Please Sign and Return by May 29,2026. Please email:info@downtownchulavista.comor FAX to (888)356-2726 or Mail to:Downtown Chula Vista Association 353 Third Avenue,Chula Vista,CA 91910 For more information:(619)422-1982 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 324 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda ETITION TO ESTABLISH THE DOWNTOWN CHULA VISTA COMMUNITY BENEFIT DISTRICT Prepared pursuant to the City of Chula Vista's Community Benefit Ordinance.Chapter 5.14 of the Chula Vista Municipal Code and the Property Business Improvement District Act,Section 36600 of the Califomia Streets and Highway Code. Legal Owner:BALBOA INVESTMENT GROUP IV LLC Owner %of Total Assessment:0.23% APN 568-072-22-00 Site Address 245 CHURCH AVE Proposed Assessment 1,859.92 1,859.92 Percent 0.23% 0.23%TOTALS: Yes,I endorse the Downtown Chula Vista Management District Plan for 2027. STATEMENT OF AUTHORITY TO SIGN THIS PETITION -(Must be completed by petition signer) CH hereby certify (or declare)under penalty of perjury NAME CLEARLY under the laws of the State of California that I am the owner, or the authorized representative of the owner,of the property listed above and have the authority to execute this petition with respect to that property.This statement is true,correct and complete to the best of my knowledge as of this date 5 /2 0 /2 02 C Petitioner Signature: Please Sign and Return by May 29,2026. Please email:info@downtownchulavista.com or FAX to (888)356-2726 or Mail to:Downtown Chula Vista Association 353 Third Avenue,Chula Vista,CA 91910 For more information:(6 19)422-1982 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 325 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda ocusign Envelope ID:F3553DAD-EE09-89F9-80DD-32996DCC47DO PETITION TO ESTABLISH THE DOWNTOWN CHULA VISTA COMMUNITY BENEFIT DISTRICT Prepared pursuant to the City of Chula Vista's CommunityBenefit Ordinance,Chapter 5.14 of the Chula Vista Municipal Code and the Property Business Improvement District Act,Section 36600 of the Califomia Streets and Highway Code. Legal Owner:BITAR MARGARET R T TRUST APN 568-044-13-00 Site Address 242 3RD AVE Owner %of Total Assessment: TOTALS: 0.15% 1,166.36 1,166.36 Percent 0.15% 0.15% Yes,I endorse the Downtown Chula Vista Management District Plan for 2027. STATEMENT OF AUTHORITY TO SIGN THIS PETITION (Must be completed by petition signer) hereby certify (or declare) under penalty of perjury NAME CLEARLY under the laws of the State of California that I am the owner,or the authorized representative of the owner,of the property listed above and have the authority to execute this petition with respect to that property.This statement is true,correct and complete to the best of my knowledge as of this date S Signed by: Petitioner Signature: 8B2D82E03825442 Please Sign and Return by May 29,2026. Please email:info@downtownchulavista.com or FAX to (888)356-2726 or Mail to:Downtown Chula Vista Association 353 Third Avenue,Chula Vista,CA 91910 For more information:(619)422-1982 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 326 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda UPLICATE PETITION TO ESTABLISH THE DOWNTOWN CHULA VISTA COMMUNITY BENEFIT DISTRICT Prepared pursuant to the City of Chula Vista's Community Benefit Ordinance,Chapter 5.14 of the Chula Vista Municipal Code and the Property Business Improvement District Act,Section 36600 of the California Streets and Highway Code. Legal Owner:CARMEL OAKS DEL MAR LLC 568-450-51-00 568-450-50-00 Site A#rgs. 363 H ST 355 H ST Owner %of Total Assessment: TOTALS: 0.83% 5,105.36 1,267.12 6,372.48 Percent 0.67% 0.17% 0.83% Yes,I endorse the Downtown Chula Vista Management District Plan for 2027. STATEMENT OF AUTHORITY TO SIGN THIS PETITION -(Must be completed by petition signer) re orscoLLC PRINT NAME CLEARLY hereby certify (or declare)under penalty of perjury or the authorized representative of the owner,oftheunderthelawsoftheStateofCalifoatatIamtheow property listed above and have e aut ori toexe e this petition with respect to that property.This statement is I dge as of this date L//utrue,correct and complete t bes of y k Petitioner Signature: Pl se Sign and Return by May 29,2026. Please email:i o@downtownchuiavista.com or FAX to (888)356-2726 or Mail to:Downtown Chula Vista Association 353 Third Avenue,Chula Vista,CA 91910 For more information:(619)422-1982 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 327 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda ETITION TO ESTABLISH THE DOWNTOWN CHULA VISTA COMMUNITY BENEFIT DISTRICT Prepared pursuant to the City of Chula Vista's Community Benefit Ordinance,Chapter 5.14 of the Chula Vista Municipal Code and the Propeny Business Improvement District Act,Section 36600 of the Califomia Streets and Highway Code. Legal Owner: CHRISTOPHER OSWALD LLC Owner %of Total Assessment:0.04% APN 568-151-01-04 Site Address 345 F ST #130 Proposed Assessment 351.52 351.52 Percent 0.04% 0.04%TOTALS: Yes,I endorse the Downtown Chula Vista Management District Plan for 2027. STATEMENT OF AUTHORITY TO SIGN THIS PETITION -(Must be completed by petition signer) hereby certify (or declare)under penalty of perjury PRINT NAME CLEARLY under the laws of the State of California that I am the owner,or the authorized representative of the owner,of the property listed above and have the authority to execute this petition with respect to that property.This statement is true,correct and complete to the best of my knowledge as of this date Petitioner Signature: Please Sign and Return by May 29,2026. Please email:info@downtownchulavista.com or FAX to (888)356-2726 or Mail to:Downtown Chula Vista Association 353 Third Avenue,Chula Vista,CA 91910 For more information:(619)422-1982 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 328 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda UPLICATE PETITION TO ESTABLISH THE DOWNTOWN CHULA VISTA COMMUNITY BENEFIT DISTRICT Prepared pursuant to the City of Chula Vista's Community Benefit Ordinance,Chapter 5.14 of the Chula Vista Municipal Code and the Property Business Improvement District Act,Section 36600 of the California Streets and Highway Code. Legal Owner:CHULI FLATS AT CENTER LLC Owner %of Total Assessment:0.90% Prooosed Assessment 568-334-16-00 288 CENTER ST $7,412.64 7,412.64 0.90% 0.90%TOTALS: Yes,I endorse the Downtown Chula Vista Management District Plan for 2027. STATEMENT OF AUTHORITY TO SIGN THIS PETITION -(Must be completed by petition signer) hereby certify (or declare)under penalty of perjury PRINT NAME CLEARLY under the laws of the State of California that I am the owner, or the authorized representative of the owner,of the property listed above and have the authority to execute this petition with respect to that property.This statement is true,correct and complete to the be t my nowledge as of this date Z 2 Petitioner Signature: lease Sign and Return by May 29,2026. Please email:info@downtownchulavista.com or FAX to (888)356-2726 or Mail to:Downtown Chula Vista Association 353 Third Avenue,Chula Vista,CA 91910 For more information:(619)422-1982 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 329 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda ETITION TO ESTABLISH THE DOWNTOWN CHULA VISTA COMMUNITY BENEFIT DISTRICT Prepared pursuant to the City of Chula Vista's CommunityBenefit Ordinance,Chapter 5.14 of the Chula Vista Municipal Code and the Propedy Business Improvement District Act,Section 36600 of the Califomia Streets and Highway Code. Legal owner:COMPTON FAMILY TRUST Owner %of Total Assessment:0.04% APN 568-151-01-15 Site Address 345 F ST #215 Proposed Assessment 321.28 321.28 Percent 0.04% 0.04%TOTALS: Yes,I endorse the Downtown Chula Vista Management District Plan for 2027. STATEMENT OF AUTHORITYTO SIGN THIS PETITION (Musf be completed by petition signer) hereby certify (or declare)under penalty of perjury PRINT NAME CLEARLY under the laws of the State of California that I am the owner,or the authorized representative of the owner,of the property listed above and have the authority to execute this petition with res ct to that property.This statement is true,correct and complete to the best of my knowledge as of this date Petitioner Signatu Please Sign and Return by May 29,2026. Please email:info@downtownchulavista.com or FAX to (888)356-2726 or Mail to:Downtown Chula Vista Association 353 Third Avenue,Chula Vista,CA 91910 For more information:(6 19)422-1982 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 330 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda ETITION TO ESTABLISH THE DOWNTOWN CHULA VISTA COMMUNITY BENEFIT DISTRICT Prepared pursuant to the City of Chula Vista's Community Benefit Ordinance,Chapter 5.14 of the Chula Vista Municipal Code and the Property Business Improvement District Act,Section 36600 of the Califomia Streets and Highway Code. Legal Owner:COMPTON FAMILY TRUST Owner %of Total Assessment:0.05% APN 568-151-01-16 Site Address 345 F ST #210 Proposed Assessment 364.68 364.68 Percent 0.05% 0.05%TOTALS: Yes,I endorse the Downtown Chula Vista Management District Plan for 2027. STATEMENT QF AUTHORITYTO SIGN THIS PEtlTlON PRINT NAME CLEARLY Must be completed by petition Signer): by certify (or declare)under penalty of perjury under the laws of the State of California that I am the owner,or the authorized representative of the owner,of the roperty.This statementispropertylistedaboveandhavetheauthoritytoexecutethispetitionwitl»espect to th f—thistrue,correct and complete to the best of my k Petitioner Signature: Please Sign and Return by May 29,2026. Please email:info@downtownchulavista.com or FAX to (888)356-2726 or Mail to:Downtown Chula Vista Association 353 Third Avenue,Chula Vista,CA 91910 For more information:(6 19)422-1982 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 331 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda PETITION TO ESTABLISH THE DOWNTOWN CHULA VISTA COMMUNITY BENEFIT DISTRICT Prepared pursuant to the City of Chula Vista's Community Benefit Ordinance,Chapter 5.14 of the Chula Vista Municipal Code and the Propeny Business Improvement District Act,Section 36600 of the Califomia Streets and Highway Code. Legal Owner:COUNTY OF SAN DIEGO Owner %of Total Assessment:10.36% APN 573-100-38-00 573-100-39-00 MM Site Address 590 3RD AVE 500 3RD AVE Proposed Assessment TOTALS: 17,423.10 65,181.00 82,604.10 Percent 2.18% 8.17% 10.36% Yes,I endorse the Downtown Chula Vista Management District Pian for 2027. STATEMENT OF AUTHORITY TO SIGN THIS PETITION -(Must be completed by petition signer) Marko Medved PRINT NAME CLEARLY hereby certify (or declare) under penalty of perjury under the laws of the State of California that !am the owner,or the authorized representative of the owner,of the property listed above and have the authority to execute this petition with respect to that property.This statement is 06 1112026true,correct and complete to the best of my knowledge as of this date Digitally signed by MarkoMedvedPetitionerSignature: Please Sign and Return by May 29, 2026. Please email:info@downtownchulavista.com or FAX to (888)356-2726 or Mail to:Downtown Chula Vista Association 353 Third Avenue,Chula Vista,CA 91910 For more information:(619)422-1982 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 332 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda UPLICATE PETITION TO ESTABLISH THE DOWNTOWN CHULA VISTA COMMUNITY BENEFIT DISTRICT Prepared pursuant to the City of Chula Vista's Community Benefit Ordinance,Chapter 5.14 of the Chula Vista Municipal Code and the Property Business Improvement District Act,Section 36600 of the California Streets and Highway Code. Legal Owner:COX COMMUNICATIONS SAN DIEGO INC Owner %of Total Assessment:0.33% APN 568-410-62-00 Site Address 406 THIRD AVE Proposed Assessment 2,725.66 2,725.66 Percent 0.33% 0.33%TOTALS: Yes,I endorse the Downtown Chula Vista Management District Plan for 2027. STATEMENT OF AUTHORITY TO SIGN THIS PETITION -(Must be completed by petition signer) Sonya Middleton PRINT NAME CLEARLY hereby certify (or declare)under penalty of perjury under the laws of the State of California that I am the owner,or the authorized representative of the owner,of the property listed above and have the authority to execute this petition with respect to that property.This statement true,correct and complete to the best of my knowledge as of this date 06 /25 /2026 Petitioner Signature: Please Sign and Return by May 29,2026. Please email:info@downtownchulavista.com or FAX to (888)356-2726 or Mail to:Downtown Chula Vista Association 353 Third Avenue,Chula Vista,CA 91910 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 333 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda ETITION TO ESTABLISH THE DOWNTOWN CHULA VISTA COMMUNITY BENEFIT DISTRICT Prepared pursuant to the City of Chula Vista's Community Benefit Ordinance,Chapter 5.14 of the Chula Vista Municipal Code and the Property Business Improvement District Act,Section 36600 of the Califomia Streets and Highway Code. Legal Owner:E AS LLC Owner %of Total Assessment:1.88% APN 568-270-21-00 Site Address 310 3RD AVE Proposed Assessment 14,993.62 14,993.62 percent 1.88% 1.88%TOTALS: X Yes,I endorse the Downtown Chula Vista Management District Plan for 2027. STATEMENT OF AUTHORITY TO SIGN THIS PETITION -(Must be completed by petition signer) hereby certify (or declare)under penalty of perjury PRINT under the laws of the State of California that I am the owner,or the authorized representative of the owner,of the property listed above and have the authority to execute this petition with respect to that property.This statement is true,correct and complete to the best of my knowledge as o is date Petitioner Signature: Please Sign and Return by May 29.2026. Please email:info@downtownchulavista.com or FAX to (888)356-2726 or Mail to:Downtown Chula Vista Association 353 Third Avenue,Chula Vista,CA 91910 For more information:(619)422-1982 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 334 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda UPLICATE PETITION TO ESTABLISH THE DOWNTOWN CHULA VISTA COMMUNITY BENEFIT DISTRICT Prepaæd pursuant to the City of Chula Vista's Community Benefit Ordinance,Chapter 5.14 of the Chula Vista Municipal Code and the Property Business Improvement Distäct Act,Section 36600 of the Califomia Streets and Highway Code. Legal Owner:E T P LLC Owner %of Total Assessment:0.89% 568-300-46-00 Site Address 380 3RD AVE emosedAssessment 7,167.44 7,167.44 E.ezgnx 0.89% 0.89%TOTALS: Yes,I endorse the Downtown Chula Vista Management District Plan for 2027. STATEMENT OF AUTHORITY TO SIGN THIS PETITION -(Must be completed by petition signer) QrEA/ PRINT NAME CLEARLY hereby certify (or declare)under penalty of perjury under the laws of the State of California that I am the owner,or the authorized representative of the owner,of the property listed above and have the authority to execute this petition with respect to that property.This statement is true,correct and complete to the best of my knowledge as of this date /Z / Petitioner Signature: Please Sign and Return by May 29,2026. Please email:info@downtownchulavista.com or FAX to (888)356-2726 or Mail to:Downtown Chula Vista Association 353 Third Avenue,Chula Vista,CA 91910 For more information:(619)422-1982 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 335 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda ETITION TO ESTABLISH THE DOWNTOWN CHULA VISTA COMMUNITY BENEFIT DISTRICT Prepared pursuant to the City of Chula Vista's Community Benefit Ordinance,Chapter 5.14 of the Chula Vista Municipal Code and the Property Business Improvement District Act,Section 36600 of the Califomia Streets and Highway Code. Legal Owner:EVANS ROBERT &MARILYN FAMILY TR 0.40%Owner %of Total Assessment: ProposedAssessmentAPN 568-333-01-00 Site Address 301 3RD AVE $3,211.52 3,211.52 Percent 0.40% 0.40%TOTALS: Yes,I endorse the Downtown Chula Vista Management District Plan for 2027. STATEMENT OF AUTHORITY TO SIGN THIS PETITION -(Must be completed by petition signer) hereby certify (or declare)under penalty of perjury NAME CLEARLY under the laws of the State of California that I am the owner,or the authorized representative of the owner,of t property listed above and have the authority to execute this petition with respect to that property.This stateme true,correct and complete to the best of my knowledge as of this date / Petitioner Signature: Please Sign and Return by May 29,2026. Please email:info@downtownchulavista.comor FAX to (888)356-2726 or Mail to:Downtown Chula Vista Association 353 Third Avenue,Chula Vista,CA 91910 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 336 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda ETITION TO ESTABLISH THE DOWNTOWN CHULA VISTA COMMUNITY BENEFIT DISTRICT Prepared pursuant to the City of Chula Vista's Community Benefit Ordinance,Chapter 5.14 of the Chula Vista Municipal Code and the Propeny Business ImprovementDistrict Act,Section 36600 of the Califomia Streets and Highway Code. Legal owner:FIRST CITIZENS BANK &TRUST COMPANY Owner %of Total Assessment:0.50% APN 568-450-55-00 Site Address 399 H ST Proposed Assessment 3,983.10 3,983.10 Percent 0.50% 0.50%TOTALS: Yes,I endorse the Downtown Chula Vista Management District Plan for 2027. STATEMENT OF AUTHORITY TO SIGN THIS PETITION -(Must be completed by petition signer) hereby certify (or declare)under penalty of perjury PRINT NAME CLEARLY under the laws of the State of California that I am the owner,or the authorized representative of the owner,of the property listed above and hav he authority to execute this petition withpspect to that p perty.This statement is true,correct and complete e best of my knowledge as of this date Petitioner Signature: Please Sign and Return by May 29,2026. Please email:info@downtownchulavista.com or FAX to (888)356-2726 or Mail to:Downtown Chula Vista Association 353 Third Avenue,Chula Vista,CA 91910 For more information:(6 19)422-1982 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 337 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda ETITION TO ESTABLISH THE DOWNTOWN CHULA VISTA COMMUNITY BENEFIT DISTRICT Prepared pursuant to the City of Chula Vista's Community Benefit Oldinance,Chapter 5.14 of the Chula Vista Municipal Code and the Propeny Business Improvement Distfict Act,Section 36600 of the Califomia Streets and Highway Code. Legal Owner:G LS Owner %of Total Assessment:0.30% APN 568-420-01-00 Site Address 403 3RD AVE Proposed Assessment 2,371.50 2,371.50 percent 0.30% 0.30%TOTALS: Yes,I endorse the Downtown Chula Vista Management District Plan for 2027. STATEMENTOF AUTHORITYTO SIGN PETITION -(Must be completed by petition •signer) hereby certify (or declare)under penalty of perjury PRINT NAME CLEARLY under the laws of the State of California that I am the owner,or the authorized representative of the owner,of the property listed above and have the authority to execute this petition with respect to that property.This statement is true,correct and co ete to the best of my knowledge as of this date / Petitioner Signature: Please Sign and Return by May 29,2026. Please email:info@downtownchulavista.com or FAX to (888)356-2726 or Mail to:Downtown Chula Vista Association 353 Third Avenue,Chula Vista,CA 91910 For more information:(619)422-1982 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 338 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda ETITION TO ESTABLISH THE DOWNTOWN CHULA VISTA COMMUNITY BENEFIT DISTRICT Prepared pursuant to the City of Chula Vista's Community Benefit Ordinance,Chapter 5.14 of the Chula Vista Municipal Code and the Propeny Business Improvement District Act,Section 36600 of the Califomia Streets and Highway Code. Legal Owner: GARCIA FAMILY TRUST Owner %of Total Assessment:0.22% APN 568-161-35-00 Site Address 299 3RD AVE Proposed Assessment 1,749.68 1,749.68 Percent 0.22% 0.22%TOTALS: s I endorse the Downtown Chula Vista Management District Plan for 2027. STATEMENT OF AUTHORITY TO SIGN THIS PETITION -(Must be completed by petition signer) hereby certify (or declare)under penalty of perjury PRINT NAME CLEARLY under the laws of the State of California that I am the owner,or the authorized representative of the owner,of the property listed above and have the authority to execute this petition with respect to that roperty.This statement is true,correct and complete to the best of my knowledge as of this date S 2 Petitioner Signature: Please Sign and Return by May 29,2026. Please email:info@downtownchulavista.com or FAX to (888)356-2726 or Mail to:Downtown Chula Vista Association 353 Third Avenue,Chula Vista,CA 91910 For more information:(619)422-1982 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 339 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda UPLICATE PETITION TO ESTABLISH THE DOWNTOWN CHULA VISTA COMMUNITY BENEFIT DISTRICT Prepared pursuant to the City of Chula Vista's Community Benefit Ordinance,Chapter 5.14 ofthe Chula Vista Municipal Code and the Property Business Improvement District Act,Section 36600 of the California Streets and Highway Code. Legal Owner:GATEWAY CHULA VISTA 3 LLC Owner %of Total Assessment:0.77% APN 568-450-68-00 568-450-70-00 Site Addre:: 337 H ST 353 proQosed Assessment 1,971.60 4,224.16 6,195.76 Pergeqt 0.25% 0.53% 0.77%TOTALS: Yes,I endorse the Downtown Chula Vista Management District Plan for 2027. STATEMENT OF AUTHORITY TO SIGN THIS PETITION -(Must be 'completed by petitionsigner) PRINr NAME CLEARLY under the laws of the State of Califo hereby certify (or declare)under penalty of perjury the owner, or the au otized representative of the owner,of the Ion with respect to that property.This statementisexecutethispropertylistedaboveandhavetautori s of this date —L/17 /true,correct and complete to t bes of y knowled Petitioner Signature: a e Sign and Return by May 29,2026. Please email:infp downtownchulavista.com or FAX to (888)356-2/26 or Mail to:Downtown Chula Vista Association 353 Third Avenue,Chula Vista,CA 91 910 For more information:(6 19)422-1982 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 340 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda ETITION TO ESTABLISH THE DOWNTOWN CHULA VISTA COMMUNITY BENEFIT DISTRICT Prepared pursuant to the City of Chula Vista's Community Benefit Ordinance,Chapter 5.14 of the Chula Vista Municipal Code and the Propeny Business Improvement District Act,Section 36600 of the Califomia Streets and Highway Code. Legal Owner:GLADEHILL CAPITAL GROUP Owner %of Total Assessment:0.15% APN 568-071-06-00 568-071-07-00 Site Address 222 CHURCH AVE CHURCH AVE Proposed Assessment 597.12 594.00 1,191.12 Percent 0.07% 0.07% 0.15%TOTALS: Yes,I endorse the Downtown Chula Vista Management District Plan for 2027. STATEMENT OF AUTHORITY TO SIGN THIS PETITION (Must be completed by petition signer) hereby certify (or declare)under penalty of perjury PRINT NAME CLEARLY under the laws of the State of California that I am the owner, or the authorized representative of the owner,of the property listed above and have the authority to execute this petition with respect to that property.This statement is true,correct and complete to theb of m knowledge as of this 7-1 /2.0% Petitioner Signature: Please Sign and Return by May 29,2026. Please email:info@downtownchulavista.com or FAX to (888)356-2726 or Mail to:Downtown Chula Vista Association 353 Third Avenue,Chula Vista,CA 91910 For more information:(619)422-1982 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 341 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DUPLICATE PETITION TO ESTABLISH THE DOWNTOWN CHULA VISTA COMMUNITY BENEFIT DISTRICT Prepared pursuant to the City of Chula Vista's Community Benefit Ordinance,Chapter 5.14 of the Chula Vista Municipal Code and the Property Business Improvement District Act,Section 36600 of the California Streets and Highway Code. Legal Owner:GREEN LIVING TRUST Owner %of Total Assessment:0.13% APN 568-071-13-00 Site Address 227 3RD AVE Proposed Assessment 1,045.62 1,045.62 Percent 0.13% 0.13%TOTALS: Yes,I endorse the Downtown Chula Vista Management District Plan for 2027. STATEMENT AUTHORITY •to S!GN THis PETITION -(Must comple!éd.by pétitionesiåher)?., hereby certify (or declare)under penalty of perjury PRINT NAME CLEARLY under the laws of the State of California that I am the owner, or the authorized representative of the owner,of the property listed above and have the authority to execute this petition with respect to that property.This statement is true,correct and complete to the best of my knowledge as Of this date Petitioner Signature: Please Sign and Return by May 29,2026. Please email:info@downtownchulavista.com or FAX to (888)356-2726 or Mail to:Downtown Chula Vista Association 353 Third Avenue,Chula Vista,CA 0 For more information:(619)422-1982 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 342 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda ETITION TO ESTABLISH THE DOWNTOWN CHULA VISTA COMMUNITY BENEFIT DISTRICT Prepared pursuant to the City of Chula Vista's Community Benefit Ordinance,Chapter 5.14 of the Chula Vista Municipal Code and the Property Business Improvement District Act,Section 36600 of the Califomia Streets and Highway Code. Legal Owner:HUANG MARK WEI &KIMBERLY A LIVING TR Owner %of Total Assessment:0.05% APN 568-151-01-17 Site Address F ST #200 Proposed Assessment 371.96 371.96 Percent 0.05% 0.05%TOTALS: Yes,I endorse the Downtown Chula Vista Management District Plan for 2027. STATEMENT OF AUTHORITY TO SIGN THIS PETITION -(Must be completed by petition signer) hereby certify (or declare)under penalty of perjury PRINT NAME CLEARLY under the laws of the State of California that I am the owner,or the authorized representative of the owner,of the property listed above and have the authority to execute this petition with respect to that property.This statement is true,correct and complete to the best of my knowledge as of this date S/Iq / Petitioner Signature: Please Sign and Return by May 29,2026. Please email:info@downtownchulavista.com or FAX to (888)356-2726 or Mail to:Downtown Chula Vista Association 353 Third Avenue,Chula Vista,CA 91910 For more information:(619)422-1982 6 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 343 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda ETITION TO ESTABLISH THE DOWNTOWN CHULA VISTA COMMUNITY BENEFIT DISTRICT Prepared pursuant to the City of Chula Vista's Community Benefit Ordinance,Chapter 5.14 of the Chula Vista Municipal Code and the Propeny Business Improvement District Act,Section 36600 of the California Streets and Highway Code, Legal Owner:JOHNSTON LARRY R TRUST Owner %of Total Assessment:0.13% APN 568-044-05-00 Site Address 217 LANDIS AVE Proposed Assessment 1,036.00 1,036.00 Percent 0.13% 0.13%TOTALS: Yes,I endorse the Downtown Chula Vista Management District Plan for 2027. STATEMENT OF AUfHOklTYTOSIGN THIS PETITION•(Must be completed by petition signet) O h 40 PRINT NAME CLEARLY hereby certify (or declare) under penalty of perjury under the laws of the State of California that I am the owner, or the authorized representative of the owner,of the property listed above and have the authority to execute this petition with respect Io that roperty.This statement is true,correct and complete to the best of my knowledge as of this date //// Petitioner Signature: Please Sign and Return by May 29, 2026. Please email:info@downtownchulavista.com or FAX to (888)356-2726 or Mail to:Downtown Chula Vista Association 353 Third Avenue,Chula Vista,CA 91910 For more information:(619)422-1982 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 344 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda UPLICATE PETITION TO ESTABLISH THE DOWNTOWN CHULA VISTA COMMUNITY BENEFIT DISTRICT Prepared pursuant Io the City of Chula Vista's Community Benefit Ordinance,Chapter 5.14 ofthe Chula Vista Municipal Code and the Property Business Improvement District Act,Section 36600 of the California Streets and highway Code. Legal Owner:LAKESHORE NSLU TIC LLC Owner %of Total Assessment:0.66% APN 568-420-14-00 568-420-15-00 568-420-31-00 Site Address 435 3RD AVE 445 3RD AVE 427 3RD AVE ropqsesi A5sessrnen! 2,328.40 792.00 5,340.40 Percent 0.27% 0.29% 0.10% 0.66%TOTALS: Yes,I endorse the Downtown Chula Vista Management District Plan for 2027. STATEMENT OF AUTHORITY TO SIGN THIS PETITION (Must be completed by petitionsigner) hereby certify (or declare)under penalty of perjury PRINT NAME CLEARLY e owner, or the au horized representative of the owner,oftheunderthelawsoftheStateofCaliforn•t tl a n with respect to that roperty.This statementisecutethisppropertylistedaboveandhavethautrityt of thisdatetrue,correct and complete to th best fm owledg Petitioner Signature: Ple se gn and Return by May 29,2026. Please email:info@d wntownchulavista.com or FAX to (888)356-2726 or Mail to:Downtown Chula Vista Association 353 Third Avenue,Chula Vista,CA 91 910 For more information:(619)422-1982 4 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 345 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda ETITION TO ESTABLISH THE DOWNTOWN CHULA VISTA COMMUNITY BENEFIT DISTRICT Prepared pursuant to the City of Chula Vista's Community Benefit Ordinance,Chapter 5.14 of the Chula Vista Municipal Code and the Property Business Improvement District Act,Section 36600 of the Califomia Streets and Highway Code. Legal Owner:LANDIS ARMS LLC Owner %of Total Assessment:0.15% APN 568-044-08-00 Site Address 229 LANDIS AVE Proposed Assessment 1,196.16 1,196.16 Percent 0.15% 0.15%TOTALS: Yes,I endorse the Downtown Chula Vista Management District Plan for 2027. STATEMENT OF AUTHORITY TO SIGN THIS PETITION (Must be completed by petition signer) hereby certify (or declare)under penalty of perjury PRINT NAME CLEARLY under the laws of the State of California that I am the owner,or the authorized representative of the owner,of the property listed above and have the authority to execute this petition with respect to that property.This statement is true,correct and complete he best of my knowledge as Of this date Petitioner Signature: Please Sign and Return by May 29,2026. Please email:info@downtownchulavista.com or FAX to (888)356-2726 or Mail to:Downtown Chula Vista Association 353 Third Avenue,Chula Vista,CA 91910 For more information:(6 19)422-1982 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 346 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda tem 7.2 - Written Communications Limandri - Received 09/01/2026 Page 347 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda UPLICATE PETITION TO ESTABLISH THE DOWNTOWN CHULA VISTA COMMUNITY BENEFIT DISTRICT Prepared pursuant to the City of Chula Vista's Community Benefit Ordinance,Chapter 5.14 of the Chula Vista Municipal Code and the Propetty Business Improvement District Act,Section 36600 of the California Streets and Highway Code. Legal Owner:PGS PARTNERS LLC Owner %of Total Assessment:3.15% Proposed Assessment 568-450-67-00 371 H ST $25,275.36 25,275.36 3.15% 3.15%TOTALS: Yes,I endorse the Downtown Chula Vista Management District Plan for 2027. STATEMENT OF AUTHORITY TO SIGN THIS PETITION -(Must be completed by petition signer) SCa4-g PRN NAMECLEARLY hereby certify (or declare)under penalty of perjury under the laws of the State of California that I am the owner, or the authorized representative of the owner,of the etition with respect to that property.This statementispropertylistedaboveandhaveththo •to execute t ge as of this date 1—IL/true,correct and complete to th b st my kno Petitioner Signature: ease Sign and Return by May 29,2026, Please email'nfo@downtownchulavista.com or FAX to (888)356-2726 or Mail to:Downtown Chula Vista Association 353 Third Avenue,Chula Vista,CA 91910 For more information:(619)422-1982 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 348 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda ETITION TO ESTABLISH THE DOWNTOWN CHULA VISTA COMMUNITY BENEFIT DISTRICT Prepared pursuant to the City of Chula Vista's Community Benefit Ordinance,Chapter 5.14 of the Chula Vista Municipal Code and the Property Business Improvement District Act,Section 36600 of the Califomia Streets and Highway Code. Legal Owner:RAMIREZ REV EXEMPTION 2014 TR APN 568-043-21-00 Site Address 210 LANDIS AVE Owner %of Total Assessment: Proposed Assessment 826.84 826.84 Percent 0.10% 0.10%TOTALS: Yes,I endorse the Downtown Chula Vista Management District Plan for 2027. STATEMENT OF AUTHORITY TO SIGN THIS PETITION -(Must be completed by petition signer) hereby certify (or declare)under penalty of perjury PRINT NAME CLEARLY under the laws of the State of California that I am the owner,or the authorized representative of the owner,of the property listed above and have the authority to execute this petition with respect to that property.This statement is true,correct and complete to the best of my knowledge as of this date /ZV / Petitioner Signature: Please Sign and Return by May 29,2026. Please email:info@downtownchulavista.com or FAX to (888)356-2726 or Mail to:Downtown Chula Vista Association 353 Third Avenue,Chula Vista,CA 91910 For more information:(619)422-1982 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 349 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda UPLICATE PETITION TO ESTABLISH THE DOWNTOWN CHULA VISTA COMMUNITY BENEFIT DISTRICT Prepared pursuant to the City of Chula Vista's Community Benefit Ordinance,Chapter 5.14 of the Chula Vista Municipal Code pertyBusinesSJmprovement District Act,Section 36600 of the California Streets and Highway Code. Legal Own :RASO CHILDRENS TRUST Owner %of Total Assessment:0.25% proposed Assessment 568-350-43-00 373 3RD AVE $2,047.90 2,047.90 Percent 0.25% 0.25%TOTALS: Yes,I endorse the Downtown Chula Vista Management District Plan for 2027. STATEMENT OF AUTHORITY TO SIGN THIS PETITION -(Must be completed by petition signer) hereby certify (or declare)under penalty of perjury PRINT NAME CLEARLY under the laws of the State of California that I am the owner,or the authorized representative of the owner,of the property listed above and have the authority to execute this petition with respect to that property.This statement is true,correct and complete to the best of my knowledge as of this date Petitioner Signature: Please Sign and Return by May 29,2026. Please email:info@downtownchulavista.com or FAX to (888)356-2726 or Mail to:Downtown Chula Vista Association 353 Third Avenue,Chula Vista,CA 91910 For more information:(619)422-1982 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 350 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda ETITION TO ESTABLISH THE DOWNTOWN CHULA VISTA COMMUNITY BENEFIT DISTRICT Prepared pursuant to the City of Chula Vista's Community Benefit Ordinance,Chapter 5.14 of the Chula Vista Municipal Code and the Propeny Business ImprovementDistrict Act,Section 36600 of the California Streets and Highway Code. Legal Owner:ROSSI FAMILY TRUST Owner %of Total Assessment:0.07% APN 568-161-37-00 Site Address 2711/2 &2713RD AVE Proposed Assessment 594.00 594.00 Percent 0.07% 0.07%TOTALS: Yes,I endorse the Downtown Chula Vista Management District Plan for 2027. STA EME TOF AU TO SIGN THIS PETITION (Must becompleted by petition signer) hereby certify (or declare)under penalty of perjury PRINT NAME CLEARLY under the laws of the State of California that I am the owner,or the authorized representative of the owner,of the property listed above and have the authority to execute this petition with respect to that property.This statement is owledge as of thi ate E/E/ZGtrue,correct and complete t e best of Petitioner Signature: Please Sign and Return by May 29,2026. Please email:info@downtownchulavista.com or FAX to (888)356-2726 or Mail to:Downtown Chula Vista Association 353 Third Avenue,Chula Vista,CA 91910 For more information:(619)422-1982 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 351 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda ETITION TO ESTABLISH THE DOWNTOWN CHULA VISTA COMMUNITY BENEFIT DISTRICT Prepared pursuant to the City of Chula Vista's Community Benefit Ordinance,Chapter 5.14 of the Chula Vista Municipal Code and the Property Business Improvement District Act,Section 36600 of the Califomia Streets and Highway Code. Legal Owner:SAINT ROSE OF LIMA CATHOLIC PARISH IN CV Owner %of Total Assessment:1.01% APN 568-512-37-00 568-512-39-00 568-512-46-00 Site Address 3RD AVE ALVARADO ST #1-2 3RD AVE Proposed Assessment 1,596.00 2,000.00 4,459.04 8,055.04 Percent 0.20% 0.25% 0.56% 1.01%TOTALS: X Yes,I endorse the Downtown Chula Vista Management District Plan for 2027. STATEMENT OF AUTHORITY TO SIGN THIS PETITION -(Must be completed by petition signer) S\na-nnm vu NAME CLEARLY hereby certify (or declare)under penalty of perjury under the laws of the State of California that I am the owner, or the authorized representative of the owner,of the property listed above and have the authority to execute this petition with respect to that property.This statement is true,correct and complete to the best of my knowledge as of this date _g_/)H Petitioner Signature: Please Sign and Return by May 29,2026. Please email:info@downtownchulavista.com or FAX to (888)356-2726 or Mail to:Downtown Chula Vista Association 353 Third Avenue,Chula Vista,CA 91910 For more information:(619)422-1982 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 352 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda UPLICATE PETITION TO ESTABLISH THE DOWNTOWN CHULA VISTA COMMUNITY BENEFIT DISTRICT Prepared pursuant to the City of Chula Vista's Community Benefit Ordinance,Chapter 5.14 of the Chula Vista Municipal Code and the Property Business Improvement District Act,Section 36600 of the California Streets and Highway Code. Legal Owner:SAN DIEGO BAJA RADIO ADVERTISING LTD Owner %of Total Assessment: Proposed 0.14% APN 568-351-02-00 353 3RD AVE $1,142.58 1,142.58 percent 0.14% 0.14%TOTALS: Yes,I endorse the Downtown Chula Vista Management District Plan for 2027. STATEMENT OF AUTHORITY TO SIGN THIS PETITION (Must be completed by petition signer) hereby certify (or declare)under penalty of perjury PRINT NAME CLEARLY under the laws of the State of California that I am the owner,or the authorized representative of the owner,of the property listed above and have the authority to execute this petition with respect to that property.This statement is knowledge as of this date 5 /17 /Zbtrue,correct and complete to the bes Petitioner Signature: Please Sign and Return by May 29,2026. Please email:info@downtownchulavista.com or FAX to (888)356-2726 or Mail to:Downtown Chula Vista Association 353 Third Avenue,Chula Vista,CA 91910 For more information:(619)422-1982 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 353 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda UPLICATE PETITION TO ESTABLISH THE DOWNTOWN CHULA VISTA COMMUNITY BENEFIT DISTRICT Prepend pursuant to the CRY of Chule Vista's Community Benefit C)rdinence,Choptor 5 ld of tho Chufa Ihsta Municipal Codo end the Property Busness Impmvement District Act.Section 36600 of the Cdiforn/o Streets ond Highwoy Code Legal Owner:SEV HOLDINGS LLC Owner %of Total Assessment:0.16% sss-071-14-00 2313RD AVE $1,278.08 1,278.08 0.16% 0.16%TOTALS: Yes,I endorse the Downtown Chula Vista Management District Plan for 2027. STATEMENT OF AUTHORITY TO SIGN THIS PETITION -(Must be completed by petition signer) l,VA C-e.k PRINT CLEARLY hereby certify (or declare)under penalty of perjury under the laws of the State of California that I am the owner, or the authorized representative of the owner,of the property listed above and have the authority to execute this petition with rs9ect to that property.This statement is e e the best of my knowledge as of this date —LI—SEItrue,correct and Petitioner Signature: Please Sign and Return by May 29, 2026. Please email:info@downtownchulavista.com or FAX to (888)356-2726 or Mail to:Downtown Chula Vista Association 353 Third Avenue,Chula Vista,CA 91910 For more information:(619)422-1982 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 354 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda ETITION TO ESTABLISH THE DOWNTOWN CHULA VISTA COMMUNITY BENEFIT DISTRICT Prepared pursuant to the City of Chula Vista's Community Benefit Ordinance,Chapter 5.14 of the Chula Vista Municipal Code and the Property Business Improvement District Act,Section 36600 of the Califomia Streets and Highway Code. Legal Owner: SOLEDAD ROQUE Owner %of Total Assessment:0.32% APN 568-410-29-00 Site Address 416 3RD AVE Proposed Assessment 2,571.36 2,571.36 Percent 0.32% 0.32%TOTALS: Yes,I endorse the Downtown Chula Vista Management District Plan for 2027. STATEMENT OF AUTHORITY TO SIGN THIS PETITION -(Must be completed by petition signer) I,S0z-E/.2h0 RD PRINT NAME CLEARLY hereby certify (or declare)under penalty of perjury under the laws of the State of California that I am the owner,or the authorized representative of the owner,of the property listed above and have the authority to execute this petition with respect to that property.This statement is true,correct and compl te to the est of my kno ledge as Of this date /—ZE/-A-4—. Petitioner Signature: Please Sign and Return by May 29,2026. Please email:info@downtownchulavista.com or FAX to (888)356-2726 or Mail to:Downtown Chula Vista Association 353 Third Avenue,Chula Vista,CA 91910 For more information:(6 19)422-1982 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 355 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda ETITION TO ESTABLISH THE DOWNTOWN CHULA VISTA COMMUNITY BENEFIT DISTRICT Prepared pursuant to the City of Chula Vista's Community Benefit Ordinance,Chapter 5.14 of the Chula Vista Municipal Code and the Propeny Business Improvement District Act,Section 36600 of the Califomia Streets and Highway Code. Legal Owner:SWEETWATER AUTHORITY Owner %of Total Assessment:0.63% APN 573-100-37-00 Site Address 505 GARRETT AVE Proposed Assessment 5,049.16 5,049.16 Percent 0.63% 0.63%TOTALS: Yes,I endorse the Downtown Chula Vista Management District Plan for 2027. STATEMENT OF AUTHORITY TO SIGN THIS PETITION -(Must be completed by petition signer) hereby certify (or declare)under penalty of perjury PRINT NAME CLEARLY under the laws of the State of California that I am the owner,or the authorized representative of the owner,of the property listed above and have the authority to execute this petition with respect to that property.This statement is true,correct and complete to the best of my knowledge as of this date —/—/ Petitioner Signature: Please Sign and Return by May 29,2026. Please email:info@downtownchulavista.com or FAX to (888)356-2726 or Mail to:Downtown Chula Vista Association 353 Third Avenue,Chula Vista,CA 91910 For more information:(619)422-1982 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 356 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda UPLICATE PETITION TO ESTABLISH THE DOWNTOWN CHULA VISTA COMMUNITY BENEFIT DISTRICT Prepared pursuant to the City of Chula Vista's Community Benefit Ordnance, Chapter 5.14 of the Chula Vista Municipal Code and the Property Business Improvement District Act,Section 36600 of the Califomia Streets and Highway Code Legal Owner:THIRD AVE COMMERCIAL HOLDINGS LLC 568-152-20-00 256 3RD AVE Owner %of Total Assessment: TOTALS: 0.14% 1,142.22 1,142.22 Perpent 0.14% 0.14% 1, Yes,I endorse the Downtown Chula Vista Management District Plan for 2027. STATEMENT OF AUTHORITY TO SIGN THIS PETITION -(Must be completed by petition signer) hereby certify (or declare) under penalty of perjury PRINT NAME CLEARLY under the laws of the State of California that I am the owner,or the authorized representative of the owner.of the property fisted above and have the authority to xecute this petition with respect to that property.This statement is true,correct and compl Petitioner Signature: best of m wledge as of this date /Ö )/ Please Sign and Return by May 29, 2026. Please email:info@downtownchulavista.comor FAX to (888)356-2726 or Mail to:Downtown Chula Vista Association 363 Third Vista 91910 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 357 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda ETITION TO ESTABLISH THE DOWNTOWN CHULA VISTA COMMUNITY BENEFIT DISTRICT Prepared pursuant to the City of Chula Vista's Community Benefit Ordinance,Chapter 5.14 of the Chula Vista Municipal Code and the Ptopetty Business Improvement District Act,Section 36600 of the Califomia Streets and Highway Code. Legal Owner:WARWICK INVESTMENTS L P Owner %of Total Assessment:0.24% APN 568-151-01-13 568-350-06-00 Site Address 345 F ST #230 278 MADRONA ST Proposed Assessment 358.80 1,569.56 1,928.36 Percent 0.04% 0.20% 0.24%TOTALS: Yes,I endorse the Downtown Chula Vista Management District Plan for 2027. STATEMENT OF,AUTHORITY TO SIGN ,THIS PETITION V (Must be completed by petition signer) IU PRINT NAME CLEARLY hereby certify (or declare)under penalty of perjury under the laws of the State of California that I am the owner,or the authorized representative of the owner,of the property listed above and have the authority to execute this petition with respect to that property.This statement is true,correct and complete tot best of my knowledge as of this date // Petitioner Signature: Please Sign and Return by May 29,2026. Please email:info@downtownchulavista.com or FAX to (888)356-2726 or Mail to:Downtown Chula Vista Association 353 Third Avenue,Chula Vista,CA 91910 For more information:(619)422-1982 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 358 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 1 THE DOWNTOWN CHULA VISTA COMMUNITY BENEFIT DISTRICT MANAGEMENT DISTRICT PLAN Final Plan Summary*- August 11, 2026 Prepared pursuant to the City of Chula Vista’s Community Benefit Ordinance, Chapter 5.14 added to Title 5 of the Chula Vista Municipal Code. Prepared for: The Greater Third Avenue Improvement Association Property Owners in Downtown Chula Vista City of Chula Vista Prepared by: New City America, Inc. The Downtown Chula Vista Community Benefit District Steering Committee Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 359 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 2 Management District Plan Summary The name of this Community Benefit District (“CBD”) is the Downtown Chula Vista Community Benefit District (“Downtown Chula Vista CBD” or the “District”). The District is being formed under the City of Chula Vista’s Community Benefit Ordinance, Chapter 5.1 4 added to Title 5 of the Chula Vista Municipal Code. The levy of assessments on real property within the proposed District will confer special benefit to assessed parcels through physical and maintenance improvements to individual properties. Such improvements are intended to attract new customers, tenants, and increase business sales resulting in stabilized rents on property owners throughout Downtown Chula Vista. These benefits do not accrue to the public at large, and as such, are special and not general in nature. The assessments will fund maintenance, special events and activities, revitalizing the Downtown Chula Vista District and creating jobs, attracting, and retaining businesses, and reducing crime, in a manner that benefits the assessed parcels in a unique and distinct manner. Downtown Chula Vista CBD Steering Committee For the past three decades, Downtown Chula Vista stakeholders have worked to improve and enhance their experience and overall ambiance of working, visiting, shopping, and residing in the Downtown Chula Vista District. The current PBID Board of Directors, the Greater Third Avenue Improvement Association, approved the Downtown CBD renewal plan at its January 2026 Board of Directors meeting. Once that was done, staff was authorized to write the new Management District Plan under a newly adopted Charter City enabling ordinance, work with the Assessment Engineer for the required engineer’s report, submit to the City of Chula Vista’s City Attorney’s office to ensure compliance with the state constitution, initiate a petition drive to gauge support for the new management plan and work with the City on the majority protest proceeding to approve the renewed district. All of this will be completed by July 2026. During this renewal process, the Board of Directors and its staff shall hold public meetings with property owners as well as one on one discussions to be held to explain the purpose of the District renewal and expansion. How can a new Downtown Chula Vista CBD benefit property owners? In summary, a Downtown Chula Vista CBD is a Special Benefits Assessment District whereby property owners vote, through a majority protest proceeding, to supplement their property tax bills to pay for and control the assessments they generate through the new CBD. The CBD will not replace current City services, but it can fund solutions to supplement City services that specially benefit assessed parcels including: Safety, petty criminal, and homeless/vacancy problems to enhance profitable use of assessed parcels Sidewalk cleanliness, driving more customers to travel to and access assessed parcels Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 360 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 3 Install/improve decorative amenities such as street furniture, fixtures, equipment, and lighting to attract more customers and tenants to assessed parcels Promote and enhance the brand image of Downtown Chula Vista Manage events in and around the district, particularly on Third Avenue and soon at Memorial Plaza, in order to drive business to assessed parcels Create a strong social media presence and facilitate public relations for Downtown Chula Vista businesses. Promote public space development and placemaking, especially as it relates to the creation of the new Memorial Plaza. MOST IMPORTANTLY, THESE PROPERTY ASSESSMENT FUNDS WILL NOT REPLACE EXISTING CITY SERVICES IN DOWNTOWN CHULA VISTA AND WILL BE MANAGED BY THE PROPERTY AND BUSINESS OWNERS THROUGH THEIR NON-PROFIT OWNERS’ ASSOCIATION – THE GREATER THIRD AVENUE IMPROVEMENT ASSOCIATION, dba: Downtown Chula Vista Association. The proposed Downtown Chula Vista Community Benefit District will fund special benefit services, over and above, what the City of Chula Vista is currently providing. Special benefits are benefits that are unique and distinct to the assessed parcel and are different from how the general public may benefit. Those categories of special benefit services include the following: All services listed below are special benefits and supplemental to current City services. Year 1 – PROPOSED BUDGET (ASSESSMENT REVENUES/SPECIAL BENEFIT COSTS) CIVIL SIDEWALKS - $416,000 60% Examples of this category of special benefit services and costs may include, but are not limited to: Regular sidewalk and gutter sweeping, (estimated to be performed seven days per week) Periodic sidewalk steam cleaning, (estimated to be done at least monthly) Beautification of the district, (as needed) Enhanced trash emptying (over and above city services) Timely graffiti removal, within 48 hours as necessary Maintenance of existing and new public spaces (done daily) Maintenance of the new proposed Memorial Plaza (done daily) Set up and take down of special events (as needed) Installation and maintenance of flowers throughout the district (outside of medians) Costs related to water and infrastructure, tree and landscaping related replacements will remain an obligation of the City of Chula Vista as a general benefit Possible supplemental services provided to the City of Chula Vista through contracting out services in city assets such as the downtown parking structure Personnel to manage in-house or contracted maintenance and any security teams. Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 361 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 4 DISTRICT IDENTITY AND PLACEMAKING – $104,000 15% Examples of this category of special benefit services and costs may include, but are not limited to: Traditional events done by the Downtown Chula Vista Association (Lemon Festival, Dia de Los Muertos, Taste of Chula Vista, Annual Tree lighting) Contracting with social media, public relations firm Enhancing current City holiday and seasonal decorations Branding of Downtown Chula Vista so a positive image is promoted to the public Activation of the new Memorial Plaza Banner programs depicting the history of Third Avenue or seasonal banners) Public space design and improvements (more tables, chairs and umbrellas throughout the expanded CBD) Personnel to manage in-house or contracted public relations, web site maintenance and social media contractors. ADMINISTRATION/PROGRAM MANAGEMENT - $153,000 22% Examples of this category of special benefit services and costs may include, but is not limited to: Staff and administrative costs, contracted or in-house Directors and Officers and General Liability Insurance Office related expenses Office and equipment rent Financial reporting and accounting Legal work CONTINGENCY/CITY AND COUNTY FEES/RESERVE - $20,762 3% Examples of this category of special benefit services and costs include, but is not limited to: Delinquencies, City/County fees, reserves Proposed First Year Downtown Chula Vista District CBD Budget Category of Services Percentage of budget* 1st Year Allocation* Civil Sidewalks/Safety and Cleanliness 60% $416,000 District Identity and Placemaking 15% $104,000 Administration 22% $153,000 Contingency/Reserve 3% $20,762 Total 1st year Budget 100% $693,762 Numbers are rounded. Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 362 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 5 METHOD OF FINANCING The financing of the Downtown Chula Vista CBD is based upon the levy of special assessments on real properties that receive special benefits from the improvements and activities located within the boundaries of the District. See Section 4 for assessment methodology and compliance with Article XIII D of the California State Constitution. The four factors used to determine proportional costs to the parcels in the District: Linear frontage, on all sides of the parcel (excluding alleys) Lot square footage Building square footage Future residential condominiums Costs The costs per parcel are based upon the four factors listed above. All assessments must be proportional to the special benefits received. The annual assessment to each benefiting parcel owner will be determined by the combination of the assessments of each property variable. First Year Annual Costs Per Property Property Variable Annual Costs Building Square Footage $0.14 Lot size $0.08 Linear Frontage $4.00 Residential Condos Unit Sq. Ft. $0.14 In addition, other factors will be used to determine assessments based upon the anticipated benefit of the current land uses: Residential condominiums will be assessed for their unit building square footage only. Private parking structures or major retail parking lots may be reduced for their gross building square footage and/or lot size assessments if they are not open to the public in general, and that parking only serves the needs of direct tenants. . All publicly owned and operated parcels will be assessed for linear frontage, lot size and building square footage, similar to commercial parcels. Data and Benefit Zones There are 253 individual parcels owned by 199 property owners in the proposed Downtown Chula Vista Community Benefit District. The data was obtained by San Diego County Tax Assessors, ParcelQuest, as well as verification from property owners in the Downtown Chula Vista. The following data is used as the basis for the generation of the CBD assessments. Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 363 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 6 Current Property Data Building Square Feet Lot Square Feet Linear Frontage Residential Condos/Apt 2,089,465 sq. ft 3,450,661 sq. ft. 31,296 linear feet 0 District Formation Under the local enabling ordinance, district formation requires submission of petitions from private and public property owners in the proposed district representing at least 30% of the total assessments to be paid into the first year of the Downtown Chula Vista CBD. Once the City verifies the petitions totaling a minimum of 30%, ($208,129) of the first-year annual budget which is projected to be $693,762 in first-year annual assessments, the Chula Vista City Council may adopt a Resolution of Intention to mail out ballots to all affected property owners. The City will then hold a public hearing and tabulate the ballots. The Downtown Chula Vista CBD will be formed if the weighted majority of all returned mail ballots support District formation and if the City Council adopts a Resolution of Formation to levy the assessments on the benefiting parcels. The date for that public hearing has not been scheduled but it is assumed that it will be held in the Fall of 2026, based upon the successful completion of the petition drive. Term Under the Chula Vista local enabling ordinance, the District may be established for up to 20-years and shall not exceed 20-years. State law and the local enabling ordinance permits this annual disestablishment of the district based upon petition and vote of the property owners. Time and Manner for Collecting Assessments The Downtown Chula Vista CBD assessments will appear as a separate line item on annual property tax bills prepared by the San Diego County Tax Assessor. The assessments are collected at the same time and in the same manner as ad valorem property taxes paid to the County. The assessments have the same lien priority and penalties for delinquent payments as ad valorem property taxes. Any delinquent assessments owed for the first year will be added to the property tax roll for the following year together with any applicable interest and penalties. The “property owner” means any person shown as the owner/taxpayer on the last equalized assessment roll or otherwise known to be the owner/taxpayer by the City. Publicly owned properties of the City and County will not be collected by the County Tax Assessor, but by a manual billing by the City of Chula Vista. If adopted, the first assessments of the new Downtown Chula Vista Community Benefit District will be billed directly by the City of Chula Vista and will be on the County property tax bills the year after. Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 364 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 7 Government and Tax-exempt Parcel Assessment The Downtown Chula Vista CBD Management Plan assumes that any public or tax-exempt parcels shall pay into the CBD in proportion to the special benefit conferred on their parcel(s). There are currently City and County and non-profit hospitals in the proposed Downtown Chula Vista CBD. The Civil Sidewalks, District Identity and Placemaking and Administrative special benefit services will provide a clean and attractive working environment for those publicly owned and tax-exempt operated buildings in the core of the District, in order to attract new employees and provide enhanced visitor experience. The hospitals within the District on H Street will have thousands of visitors annually and those visitors will likely walk east along H Street to the multiple businesses near the corner of H Street and Third Avenue and will be able to enjoy the clean and attractive public rights arising for the distribution of these special benefit services. Governance Pursuant to Section 36650 of the California Streets and Highway Code, the CBD will be managed by a Owners’ Association, which is defined in section 36612 to be a private non-profit entity under contract with the City to administer or implement the CBD Plan. The CBD will be managed by the current Owners’ Association, the Greater Third Avenue Improvement Association (501c3), who will be responsible for reviewing the District budgets and policies annually within the limitations of the Management District Plan. The Owners’ Association must file Annual Reports with the City of Chula Vista and will oversee the day-to-day implementation of services as defined in the Management District Plan. Disestablishment Under Streets and Highways Code Section 36670, assessed property owners will have an annual period in which to submit petitions to the City Council to disestablish the CBD. If a petitionis submitted by property owners who pay 50% or more of the total assessment, the City shall disestablish the CBD after adopting a resolution of intention and holding a noticed public hearing. Upon disestablishment, assessments will be removed from the parcels the following fiscal year. Unexpended surplus funds will be returned to property owners based upon a parcel’s percentage contribution to the previous fiscal year’s assessments. Exemptions or Reductions in Rates Under this Management District Plan and consistent with Article XIII D of the State Constitution, no parcel receiving special benefits from the establishment of a property assessment district is exempt from the full payment of the annual assessment, and no other parcel shall be charged more than their proportional special benefit conferred as a result of another assessed parcel not paying the assessment. Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 365 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 8 Downtown Chula Vista CBD Boundaries Boundaries The proposed Downtown Chula Vista CBD consists of approximately 27 square blocks (blocks vary in size on each side of both Third Avenue, in general with E Street as the northern boundary (north and south sides of the street, I Street as the southern boundary, (north side only) and on the east and west side of Third Avenue which following the predominantly commercial and governmental parcels in a varying boundary and the expansion area running down both sides of H Street up to the eastern side of the intersection of H Street and Fourth Avenue. There are 253 parcels owned by 199 property owners. The boundaries also include large parcels and buildings by both the City and County of San Diego. The parcel map is located on page 11. District Boundary Rationale The Downtown Chula Vista CBD boundaries are comprised of parcels that highlight restaurants, bars, breweries, retailers, services, office buildings, government buildings, two hospitals, health care office buildings, banks and mixed-use residential condominiums, apartment units in general. The boundaries from the renewal of this property assessment district mirror, in general, the boundaries of the Property Business Improvement District approved by property owners in 2017 with an extension of the service area running westward on both sides of H Street, ending at the eastern intersection of Fourth Avenue and H Street. Under the new local enabling ordinance, the term will allow the district to help fund and improve new projects throughout the district, over a maximum 20-year term. The new projects may include the creation of Memorial Plaza and new public spaces created and managed throughout the district boundaries. Northern Boundary The northern boundary of the proposed Downtown Chula Vista CBD is bounded by E Street on the north, including the north and south sides of E Street ending at parcel 566 -240-011 on the east, the parcel at the northwest section of the intersection of Del Mar Avenue and E Street. On the west side, the district ends at parcel 566-232-010, 566-232-018, 566-232-013 and parcel 566-232- 017 which serves as the group of parcels defining the northwest corner of the boundaries of the District. No District special benefit services shall be provided north of the northern boundary of the District. Western Boundary The western boundary of the proposed Downtown Chula Vista CBD includes the parcel at the southwest corner of the intersection of E Street and Landis Avenue, parcel 568-043-022. The western boundary continues southward running along the west side of the par cels from 568-043- 022 ending at parcel 568-151-022. The western boundary then extends westward to include parcels 568-153-001, 568-153-002 (west of Garrett Street and F street). The western boundary then crosses southward at F Street to include the following parcels running southward on a variety of blocks starting with parcel 568-270-031, then crosses southward at Fourth Avenue and runs southward on the west side of parcels 568-270-029, 568-270-044. The western boundary Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 366 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 9 continues southward and runs along the west side of Third Avenue from Park Way and Third Avenue including all the parcels along the west side of Third Avenue, parcel 573-300-046 running southward to parcels 573-450-066. The western boundary then moves westward to both sides of H Street ending at parcel 568-450-55 at Fourth Avenue and H Street (north side) and parcel 573- 010-021 at Fourth Avenue and H Street (south side). The western boundary then runs eastward on the south side of H Street, up to Third Avenue. From there the western boundary turns at H Street turning southward to include the County owned buildings including parcel 573 -100-037, 573-100-039 and 573-100-038, ending at the northwestern corner of the intersection of I Street and Third Avenue, parcel 573-100-038. No District programs and services will be provided west of the western District boundary. Southern Boundary The southern boundary of the proposed Downtown Chula Vista CBD ends at two parcels at the northwestern parcel of the intersection of I Street and Third Avenue, parcel 573-100-038 and then includes the parcel at the northeastern corner of I Street and Third Avenue, parcel 573-110-024. No District programs and services will be provided south of the southern District boundary. Eastern Boundary The eastern boundary of the District starts at the northeastern parcel of the intersection of I Street and Third Avenue, parcel 573-110-024 and then proceeds northward on the east side of Third Avenue including all the parcels on the east side of Third Avenue up to parcel 573-512-039 at Alvarado Street. The eastern boundary then continues running northward along the east side of Third Avenue including parcels 573-420-021, 573-420-020 and parcel 573-420-019. The eastern boundary then continues northward running along the east side of Third Avenue including all the parcels between the alley east of Third Avenue to Third Avenue from Alvarado Street on the south to Center Street on the north. All the parcels between Third Avenue and the alley to the east of Third Avenue are included in the eastern boundary. At Center Street, the eastern boundary continues northward to include all the parcels between the east side of Third Avenue and the west side of Del Mar Avenue, ending at F Street (parcel 568-333-011). The eastern boundary then moves northward along the east side of Church Avenue starting at parcel 568-162-011 at the northeastern corner of the intersection of F Street and Church Avenue and continues northward including all the parcels fronting along the east side of Church Avenue ending at the parcel on E Street, parcel 569- 072-026. The eastern boundary terminates at the parcel on the north side of E Street and Del Mar Avenue, parcel 566-240-011. No District programs and services will be provided east of the eastern District boundary. Summation A list of all parcels included in the proposed Downtown Chula Vista CBD are shown as Appendix 1, attached to this report identified by their respective San Diego County assessor parcel numbers. All identified assessed parcels within the above-described boundaries shall be assessed to fund supplemental special benefit programs, services and improvements as outlined in this Management District Plan. Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 367 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 10 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 368 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 11 District Rules and Regulations and Governance There are no specific rules and regulations prescribed for the proposed Downtown Chula Vista Community Benefit District Management Corporation except that it will adhere to the open meeting and open records provisions of the Ralph M. Brown Act and will see k to be as open and transparent to the CBD assessees and the public at large as is reasonably possible. Implementation Timetable The Downtown Chula Vista CBD is expected to be established and begin assessing benefiting parcels as of the fourth quarter of calendar year 2026. Due to the timing of revenue collection by the City of Chula Vista (for the first year of operation) and then eed to establish the new contract between the Owners’ Association and the City of Chula Vista, implementation of the Management District Plan and the delivery of services is scheduled to commence in or around late 2026/early 2027. Thereafter, the CBD assessments will be on the annual property tax bill. Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 369 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 0 ATTACHMENT 1 DOWNTOWN CHULA VISTA COMMUNITY BENEFIT DISTRICT DCV CBD) ASSESSMENT ENGINEER’S REPORT Being Established for a 20-year Term Pursuant to the City of Chula Vista’s Community Benefit District Ordinance Chapter 5.14 added to Title 5 of the Chula Vista Municipal Code. Prepared by Edward V. Henning California Registered Professional Engineer # 26549 Edward Henning & Associates August 11, 2026 v 3.1 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 370 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 1 ASSESSMENT ENGINEER’S REPORT To Whom It May Concern: I hereby certify to the best of my professional knowledge and experience that each of the identified benefiting properties located within the proposed Downtown Chula Vista Community Benefit District DCV CBD") being established for a 20 year term will receive a special benefit over and above the benefits conferred on the public at large and that the amount of the proposed assessment is proportional to, and no greater than the benefits conferred on each respective property. As required by State Law, I have personally prepared this entire Report and hereby attest to all of its contents. Introduction This report serves as the “detailed engineer’s report” required by Section 4(b) of Article XIIID of the California Constitution to support the benefit property assessments to be levied within the proposed DCV CBD in the City of Chula Vista, California being established for a 20 year term. The discussion and analysis contained within this Report constitutes the required “nexus” of rationale between assessment amounts levied and special benefits conferred on real properties within the proposed DCV CBD. August 10, 2026 3/31/28 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 371 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 2 Background The DCV CBD is a property-based benefit assessment type district being established for a 20 year term pursuant to the City of Chula Vista’s Community Benefit District Ordinance, codified Under Municipal Code Chapter 5.14 added to Title 5 (the “Ordinance”), which supplements Section 36600 et seq. of the California Streets and Highways Code (as amended), also known as the Property and Business Improvement District Law of 1994 the “Act”). Due to the benefit assessment nature of assessments levied within a property and business improvement district (“PBID”) or community benefit district (“CBD”), district program costs are to be distributed amongst all identified benefiting properties based on the proportional amount of special benefit each property is expected to derive from the assessments levied. Only those properties on which special benefits are expected to be conferred from assessment funded programs and activities may be assessed and only in an amount proportional to the relative special benefits expected to be conferred on each property. Supplemental Article XIIID Section 4(b) California Constitution Procedures and Requirements Proposition 218, approved by the voters of California in November of 1996, adds a supplemental array of procedures and requirements to be carried out prior to levying a property-based assessment like the DCV CBD. These requirements are in addition to requirements imposed by State and local assessment enabling laws. These requirements were “chaptered” into law as Article XIIID Section 4(b) of the California Constitution (hereinafter Article XIIID). Since Article XIIID provisions will affect all subsequent calculations to be made in the final assessment formula for the DCV CBD, each of these supplemental requirements will be taken into account and addressed in this Report. The key provisions of Article XIIID along with a description of how the DCV CBD complies with each of these provisions are delineated below. Note: All section references below pertain to Article XIII D of the California Constitution) Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 372 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 3 Finding 1. From Section 4(a): “Identify all parcels which will have a special benefit conferred upon them and upon which an assessment will be imposed” Boundaries The proposed Downtown Chula Vista CBD (DCV CBD) consists of approximately 27 square blocks blocks vary in size on each side of both Third Avenue, in general with E Street as the northern boundary north and south sides of the street, I Street as the southern boundary, (north side only) and on the east and west side of Third Avenue which following the predominantly commercial and governmental parcels in a varying boundary. There are 253 parcels owned by 199 property owners. The boundaries also include large parcels and buildings owned by both the City and County of San Diego. The boundary of the DCV CBD and parcels within it are shown on the map of the DCV CBD attached as Appendix 2 to this Report. District Boundary Rationale The DCV CBD boundaries are comprised of parcels that highlight restaurants, bars, breweries, retailers, services, office buildings, government buildings, two hospitals, health care office buildings, banks and mixed-use residential condominiums, apartment units in general. The boundaries from the renewal of this property assessment district mirror, in general, the boundaries of the PBID approved by property owners in 2017 with an extension of the service area running westward on both sides of H Street, ending at the eastern intersection of Fourth Avenue and H Street. Under the new local enabling ordinance, the term will allow the district to help fund and improve new projects throughout the district, over a maximum 20-year term. The new projects may include the creation of Memorial Plaza and new public spaces created and managed throughout the district boundaries. Northern Boundary The northern boundary of the proposed DCV CBD is bounded by E Street on the north, including the north and south sides of E Street ending at parcel 566-240-011 on the east, the parcel at the northwest section of the intersection of Del Mar Avenue and E Street. On the west side, the district ends at parcel 566-232-010, 566-232-018, 566-232-013 and parcel 566-232-017 which serves as the group of parcels defining the northwest corner of the District boundaries. No District special benefit services shall be provided north of the northern District boundary. Western Boundary The western boundary of the proposed Downtown Chula Vista CBD includes the parcel at the southwest corner of the intersection of E Street and Landis Avenue, parcel 568 -043-022. The western boundary continues southward running along the west side of the parcels from 568-043022 ending at parcel 568- 151-022. The western boundary then extends westward to include parcels 568-153-001, 568-153-002 west of Garrett Street and F street). The western boundary then crosses southward at F Street to include the following parcels running southward on a variety of blocks starting with parcel 568-270-031, then crosses southward at Fourth Avenue and runs southward on the west side of parcels 568-270-029, 568- 270-044. The western boundary continues southward and runs along the west side of Third Avenue from Park Way and Third Avenue including all the parcels along the west side of Third Avenue, parcel 573 - 300-046 running southward to parcels 573-450-066. The western boundary then moves westward to both sides of H Street ending at parcel 568-450-55 at Fourth Avenue and H Street (north side) and parcel 573010-021 at Fourth Avenue and H Street (south side). The western boundary then runs eastward on the south side of H Street, up to Third Avenue. From there the western boundary turns at H Street turning southward to include the County owned buildings including parcel 573-100-037, 573-100-039 and 573- Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 373 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 4 100-038, ending at the northwestern corner of the intersection of I Street and Third Avenue, parcel 573- 100-038. No District programs and services will be provided west of the western District boundary. Southern Boundary The southern boundary of the proposed DCV CBD ends at two parcels at the northwestern parcel of the intersection of I Street and Third Avenue, parcel 573-100-038 and then includes the parcel at the northeastern corner of I Street and Third Avenue, parcel 573-110-024. No District programs and services will be provided south of the southern District boundary. Eastern Boundary The eastern boundary of the proposed DCV CBD starts at the northeastern parcel of the intersection of I Street and Third Avenue, parcel 573-110-024 and then proceeds northward on the east side of Third Avenue including all the parcels on the east side of Third Avenue up to parcel 573-512-039 at Alvarado Street. The eastern boundary then continues running northward along the east side of Third Avenue including parcels 573-420-021, 573-420-020 and parcel 573-420-019. The eastern boundary then continues northward running along the east side of Third Avenue including all the parcels between the alley east of Third Avenue to Third Avenue from Alvarado Street on the south to Center Street on the north. All the parcels between Third Avenue and the alley to the east of Third Avenue are included in the eastern boundary. At Center Street, the eastern boundary continues northward to include all the parcels between the east side of Third Avenue and the west side of Del Mar Avenue, ending at F Street (parcel 568-333-011). The eastern boundary then moves northward along the east side of Church Avenue starting at parcel 568-162011 at the northeastern corner of the intersection of F Street and Church Avenue and continues northward including all the parcels fronting along the east side of Church Avenue ending at the parcel on E Street, parcel 569- 072-026. The eastern boundary terminates at the parcel on the north side of E Street and Del Mar Avenue, parcel 566-240-011. No District programs and services will be provided east of the eastern District boundary. Summary All identified parcels within the above-described boundaries and shall be assessed to fund supplemental special benefit programs, services and improvements as outlined in the Management District Plan (the Plan”) and in this Assessment Engineer’s Report (the “Report”). All DCV CBD funded services, programs and improvements provided within the above-described boundaries shall confer special benefit to identified assessed parcels inside the DCV CBD boundaries and none will be provided outside of the DCV CBD. Each assessed parcel within the DCV CBD will proportionately specially benefit from the DCV CBD funded Civil Sidewalks-Safety-Cleanliness, District Identity-Placemaking, Administration and Contingency-Reserve as described in more detail under “Work Plan”, beginning on page 12 of this Report. These services, programs and improvements are intended to improve commerce, employment, rents, livability and commercial and residential occupancy rates of parcels and businesses within the DCV CBD by reducing litter and debris, deterring crime, marketing the available goods and services and installing beautification elements, each considered necessary in a competitive properly managed mixed-use business district. All DCV CBD funded services programs and improvements are considered supplemental, above normal base level services provided by the City of Chula Vista and are only provided for the special benefit of assessed parcels within the boundaries of the DCV CBD. A list of all parcels included in the proposed DCV CBD is shown as Appendix 1, attached to this Report with their respective San Diego County assessor parcel number. The boundary of the proposed DCV CBD and parcels within it are shown on the map of the DCV CBD attached as Appendix 2 to this Report. Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 374 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 5 Finding 2. From Section 4(a): “Separate general benefits (if any) from the special benefits conferred on parcel(s). Only special benefits are assessable. “ QUANTITATIVE BENEFIT ANALYSIS As stipulated in Article XIIID Section 4(b) of the California Constitution, assessment district programs and activities confer a combination of general and special benefits to properties, but the only program benefits that can be assessed are those that provide special benefit to the assessed properties. For the purposes of this analysis, a “general benefit” is hereby defined as: “A benefit to properties in the area and in the surrounding community or benefit to the public in general resulting from the improvement, activity, or service to be provided by the assessment levied”. “Special benefit” as defined by Article XIIID means a distinct benefit over and above general benefits conferred on real property located in the district. The property uses within the boundaries of the DCV CBD that will receive special benefits from DCV CBD funded programs and services are currently an array of restaurants, bars, breweries, retailers, services, office buildings, government buildings and market rate apartment units with future residential condominiums. Services, programs and improvements provided and funded by the DCV CBD are primarily designed to provide special benefits as described below to identified assessed parcels and the array of land uses within the boundaries of the DCV CBD and are over and above services already provided by the City to the general public at large. The proposed DCV CBD programs, improvements and services and Year 1 budget allocation are as follows: Year 1 - DCV CBD Special Benefit Cost Allocations (Assessment Revenue Only) * Civil Sidewalks- Safety- Cleanliness District Identity Placemaking Administration Contingency Reserve TOTAL 59.9629% 14.9907% 22.0537% 2.9927% 100.00% 416,000 $104,000 $153,000 $20,762 $693,762 These dollar numbers are rounded to the closest whole dollar amount Assessed parcels are conferred proportionate special benefits from all DCV CBD funded programs, services and improvements which are intended to attract more customers, users, visitors, employees, tenants and investors. DCV CBD programs, services and improvements are designed to increase business volumes, sales transactions, occupancies, livability and rental income. These programs, services and improvements are designed to improve commerce and aesthetic appeal for owners, tenants, patrons, residents, visitors and employees of these parcels within the DCV CBD by reducing litter and debris, deterring crime, marketing the available goods and services and installing beautification elements, each considered necessary in a competitive properly managed mixed-use business district. Importantly, these services and improvements are in addition to services and improvements that the City provides to the general public and are only provided to and funded by the assessed parcels. These benefits are particular and distinct to each and every identified and assessed parcel within the DCV CBD and are not provided to non-assessed parcels outside of the DCV CBD. These programs, services and improvements will only be provided to each individual assessed parcel within the DCV CBD Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 375 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 6 boundaries and, in turn, confer proportionate special benefits to each assessed parcel. In the case of the DCV CBD, the very nature of the purpose of this CBD is to fund supplemental programs, services and improvements to assessed parcels within the DCV CBD boundaries above and beyond what is being currently funded either via normal tax supported methods or other funding sources. All benefits derived from the assessments to be levied on assessed parcels within the DCV CBD are for services, programs and improvements directly and specially benefiting each individual assessed parcel within the DCV CBD. No DCV CBD funded services, activities or programs will be provided outside of the DCV CBD boundaries. While every attempt is made to provide DCV CBD services and programs to confer special benefits only to those identified assessed parcels within the DCV CBD. Article XIIID stipulates that the portion of the program costs that are attributable to general benefits must be assigned a value and funded from sources other than assessment revenue. A special benefit does not become or create general benefits if the special benefit creates or produces general benefits, either General benefits might be conferred on parcels within the DCV CBD, or “spillover” onto parcels surrounding the DCV CBD, or to the public at large who might be passing through the DCV CBD with no intention of transacting business within the DCV CBD or interest in the DCV CBD itself. Assessment engineering experience throughout California has found that general benefits within a given business improvement district tend to range from 2-6% of the total costs. There are three methods that have been used by this Assessment Engineer for determining general and special benefit values within assessment districts: 1) The parcel-by-parcel allocation method 2) The program/activity line-item allocation method, and 3) The composite district overlay determinant method. A majority of PBID type districts in California for which this Assessment Engineer has provided assessment engineering services in conformance with Article XIIID have used Method #3, the composite district overlay determinant method which will be used for the DCV CBD. This method of computing the value of general benefit involves a composite of three distinct types of general benefit – general benefit to assessed parcels within the DCV CBD, general benefit to the public at large within the DCV CBD and general benefit to parcels outside the DCV CBD. General Benefit – Assessed Parcels within the DCV CBD DCV CBD funded programs are narrowly designed and carefully implemented to specially benefit the assessed DCV CBD parcels and are only provided for the special benefit to each and every assessed parcel within the DCV CBD. It is the opinion of this Engineer, based on over 30 years of professional assessment engineering experience and knowledge of similar factors used in similar type business improvement districts throughout California by other Assessment Engineer’s, that nearly 100% of benefits conferred on the 253 assessed parcels within the DCV CBD are distinct and special. In the case of the DCV CBD, it is projected that there are 0.25% general benefits conferred on these parcels. This high ratio of special benefits to general benefits is because the DCV CBD funded programs and services are specially geared to the unique needs of each parcel within the DCV CBD and are directed specially only to these parcels within the DCV CBD and are in addition to services provided City-wide and to the general public at large. This concept is further reinforced by the proportionality of special benefits conferred on each parcel within Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 376 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 7 the DCV CBD as determined by the special benefit assessment formula as it is applied to the unique and varying property characteristics of each parcel. The computed 0.25% general benefit value on the 253 assessed parcels within the DCV CBD equates to $1,734 or (.25% x $693,762). Spillover General Benefits to Parcels Outside of DCV CBD While DCV CBD programs and services will not be provided directly to parcels outside the DCV CBD boundaries, it is reasonable to conclude that DCV CBD services may confer an indirect general benefit on parcels adjacent to the DCV CBD boundaries. The California Court of Appeal has previously held that indirect benefits to non-assessed parcels resulting from programs and services provided directly and only to assessed parcels does not in and of itself create a general benefit. Nevertheless, out of an abundance of caution, and in light of certain adjacent parcels, this report analyzes the potential for some general benefit. An inventory of the DCV CBD boundaries finds that the DCV CBD is immediately surrounded by 140 parcels. Of these, 21 are commercial zoned parcels with commercial uses and 119 are either residentially zoned parcels with residential uses or public or non-profit owned parcels with public or non-profit uses. The 140 parcels directly outside the DCV CBD boundaries can reasonably be assumed to receive some indirect general benefit as a result of DCV CBD funded programs, services and improvements. Based on over 30 years of assessment engineering experience and knowledge of similar factors used in similar type business improvement districts throughout California by other Assessment Engineer’s, it is the opinion of this Engineer that a benefit factor of 1.0 be attributed to the 253 assessed parcels within the DCV CBD, a benefit factor of 0.05 be attributed to general benefits conferred on the 21 commercial parcel located adjacent to or across the street from assessed parcels within the DCV CBD, and a benefit factor of 0.005 be attributed to general benefits conferred on the 119 residential or public or non-profit parcels and uses located adjacent to or across the street from assessed parcels within the DCV CBD. The cumulative dollar value of this general benefit type equates to $4,545 ($2,892 + $1,653) as delineated in the following Table: Spillover” General Benefits * Parcel Type Quantity Benefit Factor Benefit Units Benefit Percent Benefit Value Assessed Parcels Inside BID 253 1.000 253.00 99.3521% $693,762 Commercial Perimeter Parcels Outside BID 21 0.050 1.05 0.4123% $2,892 Other Perimeter Parcels Outside BID 119 0.005 0.60 0.2356% $1,653 TOTAL 254.65 100.00% $701,550 It is noted that some of these numbers are rounded to the closest whole dollar amount. General Benefit - Public At Large While the DCV CBD funded programs are narrowly designed and carefully implemented to specially benefit the assessed DCV CBD parcels, are provided directly and exclusively to assessed parcels, and are only provided for the special benefit to each and every assessed parcel within the DCV CBD, these programs also provide general benefits to the public at large within the DCV CBD. For the proposed DCV CBD activities, assessment engineering experience in California, based on actual professionally conducted pedestrian intercept surveys in other similar business improvement type districts Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 377 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 8 has found that generally over 95% of people moving about within similar district boundaries are engaged in business related to assessed parcels and businesses located within them, while the public at large “just passing through” is typically 5% or less. Districts with high levels of transit connecting nodes and patrons may have higher levels of general benefits conferred on non-engaged “passers-through”, i.e. the public at large. Tangible services and improvements such as security, benches and shade trees would confer higher levels of general benefits on the public at large than say steam cleaned sidewalks, planters, decorative pavement and other general district management and operation activities. Typically, a factor range from 2.0% to 4% 0.02 to 0.04) is assigned to tangible streetscape/sidewalk type services, programs and improvements such as security, benches and shade trees; in turn, a factor ranging from 0.25% to 1.0% (0.0025 to 0.01) is assigned to intangible services, programs and improvements such as sidewalk and pavement cleaning, general landscape improvements and ancillary services such as district management, operations and overhead. While the California Court of Appeal has previously held that a business improvement district that provides services directly to assessed properties in addition to services provided to the public at large provides only a special benefit to the assessed parcels even if the special benefits produce general benefits to the public at large. Nevertheless, out of an abundance of caution, this report identifies some general benefit. Based on experience and the nature of the proposed DCV CBD funded programs and over 30 years of assessment engineering experience, it is the opinion of this Assessment Engineer that districtwide general benefit factors for each of the DCV CBD funded special benefit program element costs that provide a general benefit to the public at large are as shown in the Table below. These factors are applied to each program element cost in order to compute the dollar and percent value of districtwide general benefits to the public at large. The total dollar value of this general benefit type, public at large, equates to $7,729 as delineated in the following Table: GENERAL BENEFITS TO “PUBLIC AT LARGE” * A B C E Program Element Dollar Allocation General Benefit Percent General Benefit Factor General Benefit Value A x C) Civil Sidewalks-Safety-Cleanliness $416,000 1.50% 0.0150 $6,240 District Identity-Placemaking $104,000 0.50% 0.0050 $520 Administration $153,000 0.50% 0.0050 $765 Contingency $20,762 0.50% 0.0050 $104 Total $693,762 $7,629 It is noted that some of these numbers are rounded to the closest whole dollar amount. Composite General Benefit Based on the general benefit values delineated in the three sections above, the total value of districtwide general benefits conferred on assessed parcels within the DCV CBD, on the public at large and on parcels outside the DCV CBD, equates to $13,908 ($1,734 + $4,545 + $7,629). Total Year 1 program costs are Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 378 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 9 estimated $707,670. This Assessment Engineer has determined that the general benefit value portion of this equates to $13,908 or 1.97% of the total estimated DCV CBD program costs. This leaves a value of 98.03% assigned to special benefit related costs. The general benefit percentage will now be conservatively rounded up to 2.0% of the total revised program costs of $707,920 or $14,158. Subtracting the composite general benefit value of $14,158 from the revised total estimated program cost of $707,920 results in a special benefit value of $693,762. This is the total amount of assessments to be levied on the 253 assessed parcels in the proposed renewed DCV CBD for Year 1. General benefit costs of $14,158 will need to be funded by other non-assessment sources. A breakdown of projected special and districtwide general benefits for Years 1-20 for each program element is shown in the following Table: 20 Year Special + General Benefit Costs (Assumes max of 7% Annual Increase) * These dollar numbers are rounded to the closest whole dollar amount) YR PROGRAM CATEGORY SPECIAL BENEFIT ASSESSMENT COSTS GENERAL BENEFIT NON- ASSESSMENT COSTS TOTAL ADJUSTED COSTS OF TOTAL 1 Civil Sidewalks-Safety-Cleanliness $416,000 $8,490 $424,490 59.9629% District Identity - Placemaking $104,000 $2,122 $106,122 14.9907% Administration $153,000 $3,122 $156,122 22.0537% Contingency - Reserve $20,762 $424 $21,186 2.9927% Total $693,762 $14,158 $707,920 100.0000% 2 Civil Sidewalks-Safety-Cleanliness $445,120 $9,084 $454,204 59.9629% District Identity - Placemaking $111,280 $2,271 $113,551 14.9907% Administration $163,710 $3,341 $167,051 22.0537% Contingency - Reserve $22,215 $454 $22,669 2.9927% Total $742,325 $15,150 $757,475 100.0000% 3 Civil Sidewalks-Safety-Cleanliness $476,278 $9,720 $485,998 59.9629% District Identity - Placemaking $119,070 $2,430 $121,500 14.9907% Administration $175,170 $3,575 $178,745 22.0537% Contingency - Reserve $23,770 $486 $24,256 2.9927% Total $794,288 $16,211 $810,499 100.0000% 4 Civil Sidewalks-Safety-Cleanliness $509,617 $10,400 $520,017 59.9629% District Identity - Placemaking $127,405 $2,600 $130,005 14.9907% Administration $187,432 $3,825 $191,257 22.0537% Contingency - Reserve $25,434 $520 $25,954 2.9927% Total $849,888 $17,345 $867,233 100.0000% Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 379 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 10 5 Civil Sidewalks-Safety-Cleanliness $545,290 $11,128 $556,418 59.9629% District Identity - Placemaking $136,323 $2,782 $139,105 14.9907% Administration $200,552 $4,093 $204,645 22.0537% Contingency - Reserve $27,214 $556 $27,770 2.9927% Total $909,379 $18,559 $927,938 100.0000% 6 Civil Sidewalks-Safety-Cleanliness $583,460 $11,907 $595,367 59.9629% District Identity - Placemaking $145,866 $2,977 $148,843 14.9907% Administration $214,591 $4,380 $218,971 22.0537% Contingency - Reserve $29,119 $595 $29,714 2.9927% Total $973,036 $19,859 $992,895 100.0000% 7 Civil Sidewalks-Safety-Cleanliness $624,302 $12,740 $637,042 59.9629% District Identity - Placemaking $156,077 $3,185 $159,262 14.9907% Administration $229,612 $4,687 $234,299 22.0537% Contingency - Reserve $31,157 $637 $31,794 2.9927% Total $1,041,148 $21,249 $1,062,397 100.0000% 8 Civil Sidewalks-Safety-Cleanliness $668,003 $13,632 $681,635 59.9629% District Identity - Placemaking $167,002 $3,408 $170,410 14.9907% Administration $245,685 $5,015 $250,700 22.0537% Contingency - Reserve $33,338 $682 $34,020 2.9927% Total $1,114,028 $22,737 $1,136,765 100.0000% 9 Civil Sidewalks-Safety-Cleanliness $714,763 $14,586 $729,349 59.9629% District Identity - Placemaking $178,692 $3,647 $182,339 14.9907% Administration $262,883 $5,366 $268,249 22.0537% Contingency - Reserve $35,672 $730 $36,402 2.9927% Total $1,192,010 $24,329 $1,216,339 100.0000% 10 Civil Sidewalks-Safety-Cleanliness $764,796 $15,607 $780,403 59.9629% District Identity - Placemaking $191,200 $3,902 $195,102 14.9907% Administration $281,285 $5,742 $287,027 22.0537% Contingency - Reserve $38,169 $781 $38,950 2.9927% Total $1,275,450 $26,032 $1,301,482 100.0000% 11 Civil Sidewalks-Safety-Cleanliness $818,332 $16,699 $835,031 59.9629% District Identity - Placemaking $204,584 $4,175 $208,759 14.9907% Administration $300,975 $6,144 $307,119 22.0537% Contingency - Reserve $40,841 $836 $41,677 2.9927% Total $1,364,732 $27,854 $1,392,586 100.0000% Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 380 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 11 12 Civil Sidewalks-Safety-Cleanliness $875,615 $17,868 $893,483 59.9629% District Identity - Placemaking $218,905 $4,467 $223,372 14.9907% Administration $322,043 $6,574 $328,617 22.0537% Contingency - Reserve $43,700 $895 $44,595 2.9927% Total $1,460,263 $29,804 $1,490,067 100.0000% 13 Civil Sidewalks-Safety-Cleanliness $936,908 $19,119 $956,027 59.9629% District Identity - Placemaking $234,228 $4,780 $239,008 14.9907% Administration $344,586 $7,034 $351,620 22.0537% Contingency - Reserve $46,759 $958 $47,717 2.9927% Total $1,562,481 $31,891 $1,594,372 100.0000% 14 Civil Sidewalks-Safety-Cleanliness $1,002,492 $20,457 $1,022,949 59.9629% District Identity - Placemaking $250,624 $5,115 $255,739 14.9907% Administration $368,707 $7,526 $376,233 22.0537% Contingency - Reserve $50,032 $1,025 $51,057 2.9927% Total $1,671,855 $34,123 $1,705,978 100.0000% 15 Civil Sidewalks-Safety-Cleanliness $1,072,666 $21,889 $1,094,555 59.9629% District Identity - Placemaking $268,168 $5,473 $273,641 14.9907% Administration $394,516 $8,053 $402,569 22.0537% Contingency - Reserve $53,534 $1,097 $54,631 2.9927% Total $1,788,884 $36,512 $1,825,396 100.0000% 16 Civil Sidewalks-Safety-Cleanliness $1,147,753 $23,421 $1,171,174 59.9629% District Identity - Placemaking $286,940 $5,856 $292,796 14.9907% Administration $422,132 $8,617 $430,749 22.0537% Contingency - Reserve $57,281 $1,174 $58,455 2.9927% Total $1,914,106 $39,068 $1,953,174 100.0000% 17 Civil Sidewalks-Safety-Cleanliness $1,228,096 $25,060 $1,253,156 59.9629% District Identity - Placemaking $307,026 $6,266 $313,292 14.9907% Administration $451,681 $9,220 $460,901 22.0537% Contingency - Reserve $61,291 $1,256 $62,547 2.9927% Total $2,048,094 $41,802 $2,089,896 100.0000% 18 Civil Sidewalks-Safety-Cleanliness $1,314,063 $26,814 $1,340,877 59.9629% District Identity - Placemaking $328,518 $6,705 $335,223 14.9907% Administration $483,299 $9,865 $493,164 22.0537% Contingency - Reserve $65,581 $1,344 $66,925 2.9927% Total $2,191,461 $44,728 $2,236,189 100.0000% Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 381 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 12 19 Civil Sidewalks-Safety-Cleanliness $1,406,047 $28,691 $1,434,738 59.9629% District Identity - Placemaking $351,514 $7,174 $358,688 14.9907% Administration $517,130 $10,556 $527,686 22.0537% Contingency - Reserve $70,172 $1,438 $71,610 2.9927% Total $2,344,863 $47,859 $2,392,722 100.0000% 20 Civil Sidewalks-Safety-Cleanliness $1,504,470 $30,699 $1,535,169 59.9629% District Identity - Placemaking $376,120 $7,676 $383,796 14.9907% Administration $553,329 $11,295 $564,624 22.0537% Contingency - Reserve $75,084 $1,539 $76,623 2.9927% Total $2,509,003 $51,209 $2,560,212 100.0000% DCV CBD WORK PLAN Overview The services, programs and improvements to be funded by the DCV CBD include Civil Sidewalks-Safety- Cleanliness, District Identity-Placemaking, Administration and Contingency-Reserve. The property uses within the boundaries of the DCV CBD that will receive special benefits from DCV CBD funded programs, services and improvements are currently an array of restaurants, bars, breweries, retailers, services, office buildings, government buildings and market rate apartment units with future residential condominiums zoned as mixed-use. Services, programs and improvements provided and funded by the DCV CBD are primarily designed to provide special benefits as described below to identified assessed parcels within the boundaries of the DCV CBD, and are different from, supplemental and/or in addition to services provided by the City to the public at large. These special benefits are particular and distinct to each and every identified assessed parcel within the DCV CBD and are not provided to non-assessed parcels outside of the DCV CBD. These programs, services and improvements will only be provided to each individual assessed parcel within the DCV CBD boundaries and, in turn, confer proportionate special benefits to each assessed parcel. The very nature of the purpose of the DCV CBD is to fund supplemental programs, services and improvements to assessed parcels within the DCV CBD boundaries above and beyond the base line services provided by the City of Chula Vista. The City of Chula Vista does not provide these supplemental programs and services to non-assessed parcels. All benefits derived from the assessments to be levied on assessed parcels within the DCV CBD are for services, programs and improvements directly benefiting each individual assessed parcel within the DCV CBD. No DCV CBD funded services, activities or programs will be provided outside of the DCV CBD boundaries. The program special benefit cost allocations of the DCV CBD assessment revenues for Year 1-2026 are shown in the Table on page 15 of this Report. The projected program special benefit cost allocations of the DCV CBD assessment revenues for the 20-year term of the DCV CBD, assuming a 7% maximum annual assessment rate increase, are shown in the Table on page 14 of this Report. Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 382 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 13 WORK PLAN DETAILS The services to be provided by the DCV CBD (i.e. Civil Sidewalks-Safety-Cleanliness, District Identity- Placemaking, Administration and Contingency-Reserve) are all designed to contribute to the cohesive urban fabric to ensure economic success and vitality of each assessed parcel within the proposed DCV CBD. The assessed parcels in the DCV CBD will specially benefit from the DCV CBD programs in the form of increasing commerce and improving economic success, livability and vitality through meeting the DCV CBD Goals: to improve cleanliness, safety, beautification, landscaping and to attract and retain businesses and services, generate more pedestrian and visitor traffic and to increase commerce and improve the economic viability of each individual assessed parcel. Assessed parcels are conferred proportionate special benefits from all DCV CBD funded programs, services and improvements which are intended to attract more customers, users, visitors, employees, tenants, residents and investors. DCV CBD programs, services and improvements are designed to increase business volumes, sales transactions, occupancies and rental income. These programs, services and improvements are designed to improve commerce, livability and aesthetic appeal for owners, tenants, patrons, residents, visitors and employees of these parcels within the DCV CBD by reducing litter and debris, deterring crime, marketing the available goods and services and installing beautification elements, each considered necessary in a competitive properly managed business district. These benefits are particular and distinct to each and every identified and assessed parcel within the DCV CBD and are not provided to non-assessed parcels outside of the DCV CBD. These programs, services and improvements will only be provided to each individual assessed parcel within the DCV CBD boundaries and, in turn, confer proportionate "special benefits” to each assessed parcel. The following programs, services and improvements are proposed by the DCV CBD to specially benefit each and every individually assessed parcel within the DCV CBD boundaries.. CIVIL SIDEWALKS – SAFETY – CLEANLINESS $416,000 60% Examples of this category of special benefit services and costs may include, but are not limited to: Regular sidewalk and gutter sweeping Periodic sidewalk steam cleaning Beautification of the district Enhanced trash emptying (over and above city services) Timely graffiti removal, within 48 hours as necessary Maintenance of existing and new public spaces Maintenance of the new proposed Memorial Plaza Set up and take down of special events Installation and maintenance of flowers throughout the district (outside of medians) Possible supplemental services provided to the City of Chula Vista through contracting out services in city assets such as the downtown parking structure Personnel to manage in-house or contracted maintenance and any security teams. The goal of the Civil Sidewalk-Safety-Cleanliness work plan component is to ensure that all identified assessed parcels are clean, well maintained and safe, thereby creating an attractive DCV CBD for the special benefit of each and every assessed DCV CBD parcel. These supplemental services will assist in creating a clean, orderly and safer environment for the special benefit of each assessed parcel in the DCV Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 383 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 14 CBD. A well maintained, secured and managed environment may improve commerce and and may attract patrons, visitors and tenants and increase rents and occupancies. For the land uses within the DCV CBD this work plan component is designed to increase commerce and customer activity, attract and retain new business, residents and patrons, and may increase rents and occupancies for the assessed parcels within the DCV CBD boundaries. Each assessed parcel will specially benefit from the Civil Sidewalk-Safety- Cleanliness programs which will only be provided to, and for the direct benefit of, each identified assessed parcel within the DCV CBD boundaries. DISTRICT IDENTITY - PLACEMAKING – $104,000 15% Examples of this category of special benefit services and costs may include, but are not limited to: Traditional events done by the Downtown Chula Vista Association Contracting with social media, public relations firm Enhancing current City holiday and seasonal decorations Branding of Downtown Chula Vista so a positive image is promoted to the public Activation of Memorial Plaza Banner programs Public space design and improvements Personnel to manage in-house or contracted public relations, web site maintenance and social media contractors. The District Identity-Placemaking component is designed to promote the image of DCV CBD with physical improvements and amenities to attract and increase pedestrian activity and both business and residential occupancies. This program helps meet the goals of business and service attraction and retention and increased commerce while attracting new businesses, residents and investors. The District Identity-Placemaking component is also designed with the intent to increase the public’s awareness of the DCV CBD as a single destination in order to attract consumers to the rich collection of attractions, events, and services which will ultimately lead to increased commerce and livability. For example, the DCV CBD will publish a regular e-newsletter to keep property owners informed of upcoming events and services. The Owners’ Association will use its website to promote the assessed DCV CBD parcels in an effort to increase awareness of the DCV CBD as a destination for consumers and business and residential tenants and increase occupancy and commerce on the assessed parcels. The website will provide visitors with information about the DCV CBD and comply with the open meetings and records provisions of the Brown Act. ADMINISTRATION - $153,000 22% Examples of this category of special benefit services and costs may include, but is not limited to: Staff and administrative costs, contracted or in-house Directors and Officers and General Liability Insurance Office related expenses Office and equipment rent Financial reporting and accounting Legal work CONTINGENCY - RESERVE - $20,762 3% Examples of this category of special benefit services and costs include, but is not limited to: Delinquencies, City/County fees, reserves Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 384 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 15 The Administration and Contingency-Reserve components are key to the proper expenditure of DCV CBD assessment funds and the administration of DCV CBD programs and activities for the special benefit of all parcels and land uses within the DCV CBD. The Administration and Contingency-Reserve work plan component exists only for the purposes of the DCV CBD and directly relates to the implementation of cleaning, security and beautification, district identity and improvement programs and services, which specially benefit each identified assessed parcel within the DCV CBD boundaries. In summary, all DCV CBD funded services, programs and improvements described above confer special benefits to identified assessed parcels inside the DCV CBD boundaries and none will be provided outside of the DCV CBD. Each assessed parcel within the DCV CBD will proportionately specially benefit from Civil Sidewalks-Safety-Cleanliness, District Identity-Placemaking, Administration and Contingency- Reserve. These services, programs and improvements are intended to improve commerce, employment, rents, livability and occupancy rates of assessed parcels within the DCV CBD by reducing litter, deterring crime, marketing the available goods and services and installing physical improvements, each considered necessary in a competitive properly managed mixed-use business district. All DCV CBD funded services programs and improvements are considered supplemental, above normal base level services provided by the City of Chula Vista and are only provided for the special benefit of each and every assessed parcel within the boundaries of the DCV CBD. WORK PLAN BUDGET Each identified assessed parcel within the DCV CBD will be assessed the full amount of the proportionate special benefit conferred upon it based on the level of DCV CBD funded services provided. The projected DCV CBD program special benefit (assessments) allocation budget for Year 1 is shown in the following Table: DCV CBD Year 1 Special Benefit Assessment Budget by Zone * These numbers are rounded to the closest whole dollar amount) Civil Sidewalks-Safety- Cleanliness District Identity - Placemaking Administration Contingency Reserve TOTAL 59.9629% 14.9907% 22.0537% 2.9927% 100% 416,000 $104,000 $153,000 $20,762 $693,762 In order to carry out the DCV CBD programs outlined in the previous section, a Year 1 assessment budget of $693,762 is projected. Since the DCV CBD is being proposed for a 20-year term, projected program costs for future years (Years 2-20) are set at the inception of the DCV CBD. While future inflationary and other program cost increases are unknown at this point, a maximum annual increase of 7% per year, commensurate to special benefits conferred on each assessed parcel, is incorporated into the projected program costs and assessment rates for the DCV CBD. Funding carryovers, if any, may be reapportioned the following year for related programs, services and improvements in accordance with the Plan. Detailed annual budgets will be prepared by the Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 385 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 16 Property Owners’ Association Board and included in the Annual Report for the City Council’s review and approval. It is recognized that market conditions may cause the cost of providing goods and services to fluctuate from year to year for the proposed DCV CBD. Accordingly, the Owners’ Association shall have the ability to reallocate any budget line item within the budget categories in the Management District Plan subject to the review and approval by the Owners’ Association Board. Any surplus or unspent funds, per category, shall be accumulated year to year over the life of the DCV CBD. Such reallocation will be included in the Annual Report for approval by the City of Chula Vista City Council pursuant to related City policies. Any accrued interest or delinquent payments may be expended in any budget category in accordance with the Management District Plan. A 20-year projected DCV CBD special benefit budget is shown in the following Table: YEAR 1-20 PROJECTED DCV CBD ASSESSMENT BUDGET SUMMARY (Special Benefits) * Assumes 7% max rate increase per year) These numbers are rounded to the closest whole dollar amount) YR Civil Sidewalks- Safety- Cleanliness District Identity - Placemaking Administration Contingency Reserve TOTAL 59.9629% 14.9907% 22.0537% 2.9927% 100.00% 1 $416,000 $104,000 $153,000 $20,762 $693,762 2 $445,120 $111,280 $163,710 $22,215 $742,325 3 $476,278 $119,070 $175,170 $23,770 $794,288 4 $509,617 $127,405 $187,432 $25,434 $849,888 5 $545,290 $136,323 $200,552 $27,214 $909,379 6 $583,460 $145,866 $214,591 $29,119 $973,036 7 $624,302 $156,077 $229,612 $31,157 $1,041,148 8 $668,003 $167,002 $245,685 $33,338 $1,114,028 9 $714,763 $178,692 $262,883 $35,672 $1,192,010 10 $764,796 $191,200 $281,285 $38,169 $1,275,450 11 $818,332 $204,584 $300,975 $40,841 $1,364,732 12 $875,615 $218,905 $322,043 $43,700 $1,460,263 13 $936,908 $234,228 $344,586 $46,759 $1,562,481 14 $1,002,492 $250,624 $368,707 $50,032 $1,671,855 15 $1,072,666 $268,168 $394,516 $53,534 $1,788,884 16 $1,147,753 $286,940 $422,132 $57,281 $1,914,106 17 $1,228,096 $307,026 $451,681 $61,291 $2,048,094 18 $1,314,063 $328,518 $483,299 $65,581 $2,191,461 19 $1,406,047 $351,514 $517,130 $70,172 $2,344,863 20 $1,504,470 $376,120 $553,329 $75,084 $2,509,003 The DCV CBD assessments may increase for each individual parcel each year during the life of the DCV CBD, but not to exceed 7% per year, commensurate to special benefits received by each assessed parcel, and must be approved by the Owners’ Association Board of Directors, included in the Annual Report and adopted by the City of Chula Vista City Council. Any accrued interest and delinquent payments will be Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 386 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 17 expended within the budgeted categories. The Owners’ Association Board of the Directors (“Property Owners’ Association of the DCV CBD) shall determine the percentage increase, if any, to the annual assessment, not to exceed 7% per year. The Owners’ Association Executive Director shall communicate the annual increase to the City each year in which the DCV CBD operates at a time determined in the Administration Contract held between the Owners’ Association and the City of Chula Vista. No bonds are to be issued in conjunction with the proposed DCV CBD. Pursuant to the Ordinance, any funds remaining after the 20-Year term will be rolled over into the renewal budget or returned to stakeholders in accordance with the Ordinance. If the DCV CBD is terminated for any reason or disestablished, unencumbered/unexpended funds will be returned to the property owners in accordance with the Ordinance. Finding 3. From Section 4(a): “(Determine) the proportionate special benefit derived by each parcel in relationship to the entirety of the..........cost of public improvement(s) or the maintenance and operation expenses...........or the cost of the property related service being provided. Each identified assessed parcel within the DCV CBD will be assessed based on property characteristics unique only to that parcel. Based on the specific needs and corresponding nature of the program activities to be funded by the proposed DCV CBD (i.e. Civil Sidewalks-Safety-Cleanliness, District Identity- Placemaking, Administration and Contingency-Reserve), it is the opinion of this Assessment Engineer that the assessment factors on which to base assessment rates relate directly to the proportionate amount of building area, land area and street frontage of each parcel except as noted herein within one benefit zone. The calculated assessment rates are applied to the actual assessed factor quantities of each parcel and thereby are proportional to each and every other identified assessed parcel within the DCV CBD as a whole. Larger parcels and those with larger buildings and/or street frontage are projected to impact the demand for services and programs to a greater extent than smaller parcels or smaller buildings or street frontages and thus, are assigned a greater proportionate degree of assessment program and service costs . The proportionality is further achieved by setting targeted formula component weights for the respective parcel by parcel identified property attributes. The proportionate special benefit cost for each parcel has been calculated based on proportionate formula components and is listed in the Plan and this Report. The individual percentages (i.e. proportionate relationship to the total special benefit related program and activity costs) are computed by dividing the individual parcel assessment by the total special benefit program related costs. Finding 4. From Section 4(a): “No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel.” Not only are the proposed program costs reasonable due to the benefit of group purchasing and contracting which would be possible through the proposed DCV CBD, they are also considerably less than other options considered by the DCV CBD Formation Committee. The actual assessment rates for each parcel within the DCV CBD directly relate to the level of service and, in turn, special benefit to be conferred on each parcel based on the respective amount of building area, land area and street frontage of each parcel Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 387 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 18 except as noted herein within one benefit zone. Finding 5. From Section 4(a): “Parcels….....that are owned or used by any (public) agency shall not be exempt from assessment….......” Article XIIID states that “parcels within a District that are owned or used by any agency, the State of California or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly-owned parcels in fact receive no special benefit.” There are currently 27 public and/or tax exempt owned parcels within the boundaries of the proposed DCV CBD. Of these parcels, 21 are owned by the City of Chula Vista, 2 by the County of San Diego, 1 by Pacific Bell, 1 by Sweetwater Authority (water agency), 1 by Scripps Health and 1 by Sharp Healthcare. DCV CBD services are designed to improve the cleanliness and image of assessed publicly owned parcels and facilities for visitors, their employees, students and users of public facilities on publicly owned parcels within the DCV CBD by reducing litter and debris, deterring crime and improving their image, each considered detractions to employment, visitation and use of public facilities if not contained and properly managed. In turn, these services will serve to enhance the public purpose provided by public facilities and parcels within DCV CBD. It is the opinion of this Assessment Engineer that there is no clear and convincing evidence that any of these public owned and/or tax exempt parcels would not receive proportionate special benefits and thus, will not be exempt from assessments nor assessed differently than privately owned parcels. The Table below lists all publicly owned parcels within the proposed DCV CBD and their Year 1 assessment amounts: PUBLIC OR TAX EXEMPT OWNED PARCELS APN Legal Owner Site Street Year 1 Assessment % of Total 568-044-02-00 CITY OF CHULA VISTA 205 LANDIS AVE $ 700.00 0.10% 568-044-09-00 CITY OF CHULA VISTA 245 LANDIS AVE $ 588.00 0.08% 568-044-10-00 CITY OF CHULA VISTA 245 LANDIS AVE $ 1,400.00 0.20% 568-044-11-00 CITY OF CHULA VISTA 245 LANIS AVE $ 1,820.00 0.26% 568-044-18-00 CITY OF CHULA VISTA 226 THIRD AVE $ 1,816.60 0.26% 568-044-19-00 CITY OF CHULA VISTA 224 THIRD AVE $ 660.00 0.10% 568-071-18-00 CITY OF CHULA VISTA 248 CHURCH AVE $ 1,207.68 0.17% 568-071-19-00 CITY OF CHULA VISTA CHURCH AVE $ 876.48 0.13% 568-152-02-00 CITY OF CHULA VISTA 281 LANDIS AVE $ 700.00 0.10% 568-152-03-00 CITY OF CHULA VISTA 285 LANDIS AVE $ 700.00 0.10% 568-152-29-00 CITY OF CHULA VISTA LANDIS AVE $ 700.00 0.10% 568-152-32-00 CITY OF CHULA VISTA LANDIS AVE $ 3,368.48 0.49% 568-153-02-00 CITY OF CHULA VISTA 365 F ST $ 24,957.10 3.60% 568-162-08-00 CITY OF CHULA VISTA 281 CHURCH AVE $ 856.76 0.12% 568-162-09-00 CITY OF CHULA VISTA 287 CHURCH AVE $ 785.28 0.11% 568-270-29-00 CITY OF CHULA VISTA 340 F ST $ 35,839.76 5.17% 568-270-31-00 CITY OF CHULA VISTA 315 4TH AVE $ 31,023.48 4.47% 568-300-44-00 CITY OF CHULA VISTA 356 3RD AVE $ 3,643.84 0.53% 568-333-11-00 CITY OF CHULA VISTA 270 F ST $ 7,956.96 1.15% Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 388 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 19 568-350-02-00 CITY OF CHULA VISTA MADRONA AVE $ 907.60 0.13% 568-350-03-00 CITY OF CHULA VISTA MADRONA AVE $ 940.00 0.14% TOTAL $ 121,448.02 17.51% 573-100-38-00 COUNTY OF SAN DIEGO 590 3RD AVE $ 17,423.10 2.51% 573-100-39-00 COUNTY OF SAN DIEGO 500 3RD AVE $ 65,181.00 9.40% TOTAL $ 82,604.10 11.91% 568-410-37-00 PACIFIC BELL 420 3RD AVE $ 10,128.42 1.46% 568-450-72-00 SCRIPPS HEALTH 333 H ST $ 20,139.24 2.90% 573-040-19-00 SHARP HEALTHCARE 525 3RD AVE $ 5,620.00 0.81% 573-100-37-00 SWEETWATER AUTHORITY 505 GARRETT AVE $ 5,049.16 0.73% Finding 6. From Section 4(b): “All assessments must be supported by a detailed engineer’s report prepared by a registered professional engineer certified by the State of California”. This report serves as the “detailed engineer’s report” to support the benefit property assessments proposed to be levied within the proposed DCV CBD. Finding 7. From Section 4(c): “The amount of the proposed assessment for each parcel shall be calculated (along with) the total amount thereof chargeable to the entire district, the duration of such payments, the reason for such assessment and the basis upon which the amount of the proposed assessment was calculated.” The individual and total parcel assessments attributable to special property benefits are shown in Appendix 1 to the Plan and this Report. The proposed DCV CBD and resultant assessment levies will continue for 20 years unless disestablished. The reasons for the proposed assessments are outlined in Finding 2 above as well as in the Plan. The calculation basis of the proposed assessment is attributed to building area, land area and street frontage of each parcel except as noted herein within one benefit zone. Assessment Formula Methodology Step 1. Select “Benefit Unit(s)” Background – Generic Assessment Formula Development The method used to determine special benefits derived by each identified assessed property within a CBD begins with the selection of a suitable and tangible basic benefit unit. For property related services, such as those proposed in the DCV CBD, the benefit unit may be measured in building size in square feet, parcel land area in square feet or parcel street frontage in linear feet or any combination of these factors. Factor quantities for each parcel are then measured or otherwise obtained. From these figures, the amount of benefit units to be assigned to each property can be calculated. Special circumstances such as unique geography, land uses, development constraints etc. are carefully reviewed relative to specific programs and improvements to be funded by a CBD in order to determine any levels of different benefit that may apply on a parcel-by-parcel or categorical basis. Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 389 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 20 Based on the factors described above such as geography and nature of programs and activities proposed, an assessment formula is developed which is derived from a singular or composite benefit unit factor or factors. Within the assessment formula, different factors may be assigned different “weights” or percentage of values based on their relationship to programs/services to be funded. Next, all program and activity costs, including incidental costs, administration and ancillary program costs, are estimated. It is noted, as stipulated in Article XIIID Section 4(b) of the California Constitution, and now required of all property-based assessment districts, indirect or general benefit related costs may not be incorporated into the assessment formula and levied on the district properties; only direct or special” benefits related costs may be used. Indirect or general benefits, if any, must be identified and, if quantifiable, calculated and factored out of the assessment cost basis to produce a “net” cost figure. In addition, Article XIIID Section 4(b) of the California Constitution also no longer automatically exempts publicly owned property from being assessed unless the respective public agency can provide clear and convincing evidence that their property does not specially benefit from the programs and services to be funded by the proposed special assessments. If special ben efit is determined to be conferred upon such properties, they must be assessed in proportion to special benefits conferred in a manner similar to privately owned property assessments. (See pages 18-19 of this Report for discussion regarding publicly owned parcels within the DCV CBD). From the estimated program costs, the value of a benefit unit or “unit cost” can be computed by dividing the total amount of estimated program costs by the total number of benefit units. The amount of assessment for each parcel can be computed at this time by multiplying the Unit Cost times the number of Benefit Units per parcel. This is known as “spreading the assessment” or the “assessment spread” in that all costs are allocated proportionately or “spread” amongst all benefitting properties within the CBD. The method and basis of spreading program costs varies from one CBD to another based on local geographic conditions, types of programs and activities proposed, and size and development complexity of the district. CBDs may require secondary benefit zones to be identified to allow for a tiered assessment formula for variable or stepped-down benefits derived based on general land use differentials or levels of services required or programmed to be provided. DCV CBD Assessment Formula Based on the specific needs and corresponding nature of the program activities to be funded by the proposed DCV CBD (i.e. Civil Sidewalks-Safety-Cleanliness, District Identity–Placemaking, Administration and Contingency-Reserve) it is the opinion of this Assessment Engineer that the assessment factors on which to base assessment rates relate directly to the proportionate amount of building area, land area and street frontage of each parcel except as noted herein within one benefit zone. The “Benefit Units” will be expressed as a combined function of gross building square footage (Benefit Unit “A”), parcel land square footage (Benefit Unit “B”), street frontage (Benefit Unit “C”) and residential condominium interior building square footage (Benefit Unit “D”). Based on the shape of the proposed DCV CBD, as well as the nature of the work program, it is determined that all identified properties will gain a direct and proportionate degree of special benefit based on the respective amount of building area, land area and street frontage of each parcel except as noted herein within one benefit zone. It is noted and explained in more detail on page 21 under “Special Assessment Circumstances” that residential condominiums will be assessed based only on interior building pad square footage of each unit. Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 390 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 21 The interaction of building area, land area and street frontage quantities is a common method of fairly and equitably spreading special benefit costs to the beneficiaries of CBD funded services, programs and improvements. These factors directly relate to the proportion of special benefit each assessed parcel will receive from DCV CBD funded activities, programs and improvements. Building Area (Benefit Units A & D) is a direct measure of the static utilization of each parcel and its corresponding impact or draw on DCV CBD funded activities. The combined targeted revenue weight of Building Area (Units A & D) is about 40%. Units A and D will actually generate 42,1651% of the overall assessment revenue Land Area (Benefit Unit B) is a direct measure of the current and future development capacity of each parcel and its corresponding impact or draw on DCV CBD funded activities. The targeted revenue weight of Land Area (Unit B) is about 40%. Unit B will actually generate 39.7907% of the overall assessment revenue. Street Frontage (Benefit Unit C) is a direct measure of each parcel’s corresponding impact or draw on DCV CBD funded activities. The targeted revenue weight of Street Frontage (Unit C) is about 20%. Unit C will actually generate 18.0442% of the overall assessment revenue. Special Assessment Circumstances 1. Residential Condominiums (future) Residential condominium parcels (which are zoned mixed-use) will be assessed as a separate category. It is the opinion of this Assessment Engineer that residential condominium parcels will proportionately specially benefit from DCV CBD funded programs and activities, but differently than commercial parcels and other residential parcels with multiple units on them. As such, based on the development configuration of such units which are generally multi floor buildings with no direct land or street frontage, the assessments for residential condominiums shall be assessed based solely on the internal building area of each residential condominium unit at the rate of $0.14 per square foot of internal building pad area, the same building area rate of all other land uses, subject to any approved annual rate increases. It is noted that downtown mixed-use zoning typically allows residential uses such as apartments or condominiums but require a certain amount of commercial ground floor space and units which, in turn, are assessed on a pro-rated basis for parcel land area and street frontage (see below for mixed-use condominium assessment methodology). 2. Mixed-Use Condominiums Ground floor commercial condominiums within the DCV CBD shall be assessed based on actual land area covered, condominium building area and direct street frontage for each unit. Because such uses are typically developed as part of a multi-floor mixed-use complex, special methodologies are needed to address the levy of assessments on such land uses as follows: Multi-Floor Commercial Only Condominiums (Upper Floors) Building area assessed at respective building area rate and pro-rated for land area and street frontage based on building area quantities of the whole complex Multi-Floor Mixed-Use Condominiums Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 391 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 22 Commercial condo (See above for ground floor and upper floor locations) Residential condo (See # 1 above) 3. Single Family Dwellings (Non-Condominiums) There are a few remaining single family occupied dwelling units with the proposed DCV CBD. It is the opinion of this Assessment Engineer that these parcels will not specially benefit from the proposed activities and improvements to be funded by the DCV CBD and thus will not be assessed. In the future, should these uses change and/or new developments occur on them, they will then be assessed similar to other parcels and land uses within the DCV CBD. Changes to Building and/or Parcel Size Any changes in building or parcel size as a result of new construction, demolitions, land adjustments including but not limited to lot splits, consolidations, subdivisions, street dedications, right of way setbacks shall have their assessment adjusted upon final City approval of such building and/or parcel adjustments. Other Future Development Other than future maximum rates and the assessment methodology delineated in this Report, future assessments may increase for any given parcel if such an increase is attributable to events other than an increased rate or revised methodology, such as a change in the density, intensity, or nature of the use of land. Any change in assessment formula methodology or rates other than as stipulated in this Report would require a new Article XIIID ballot procedure in order to approve any such changes. Step 2. Quantify Total Basic Benefit Units Considering all identified specially benefiting parcels within the DCV CBD and their respective assessable benefit units, the cumulative quantities by factor and zone are shown in the following Table: Year 1 – 2026 - Assessable Benefit Units BLDG AREA (SF) LAND AREA SF) STREET FRONTAGE LF) R-CONDO BLDG AREA SF) OF ASSESSABLE PARCELS 2,089,465 3,450,661 31,296 0 253 Considering all identified specially benefiting parcels within the DCV CBD and their respective assessable benefit units, the cumulative assessment revenues by factor are shown in the following Table: Year 1 - Assessment Revenue BLDG ASSMT $ LAND ASSMT $ STREET FRONTAGE ASSMT REVENUE R-CONDO BLDG ASSMT REVENUE TOTAL ASSMT REVENUE 292,525.10 $276,052.88 $125,184.00 $0.00 $693,761.98 42.1651% 39.7907% 18.0442% 0.0000% 100.00% Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 392 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 23 Step 3. Calculate Benefit Units for Each Property. The number of Benefit Units for each identified benefiting parcel within the proposed DCV CBD was computed from data extracted from County Assessor records and maps. These data sources delineate current land uses, property areas and dimensions of record for each tax parcel. While it is understood that this data does not represent legal field survey measurements or detailed title search of recorded land subdivision maps or building records, it does provide an acceptable basis for the purpose of calculating property-based assessments. All respective property data being used for assessment computations will be provided to each property owner in the DCV CBD for their review. If a property owner believes there is an error on a parcel’s assessed quantities, the DCV CBD may confirm the data with the San Diego County Assessor’s office. If DCV CBD data matches Assessor’s data, the property owner may opt to work with the Assessor’s office to correct the data so that the DCV CBD assessment may be corrected. Step 4. Determine Assessment Formula In the opinion of this Assessment Engineer, the general assessment formula for the proposed DCV CBD as shown in the Year 1 Assessment Rate Table above is as follows: Assessment = Building Area (Unit A) Sq Ft x Unit A Rate Land Area (Unit B) Sq Ft x Unit B Rate, plus Street Frontage (Unit C) Lin Ft x Unit C Rate OR Residential Condominium Building Area (Unit D) Sq Ft x Unit D Rate Assessment Formula Unit Rates Based on figures from the Assessable Benefit Units Table above, the assessment rates for each factor and zone are shown as calculated below: Building Area Rate (Unit A) 693,761.98 x 42.1651%) / 2,089,465 assessable building area units = $0.14/sq ft building area Land Area Rate Rate B (Unit B) 693,761.98 x 39.7907%) / 3,450,661 assessable land area units = $0.08/sq ft land area Street Frontage Rate (Unit C) 693,761.98 x 18.0442%) / 31,296 assessable street frontage units = $4.00/ LF street frontage Condo Building Area Rate (Unit D) Set at $0.14/sq ft of interior unit building area Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 393 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 24 YEAR 1 Assessment Rates BLDG ASSMT RATE SF) LAND ASSMT RATE SF ) STREET FRONTAGE ASSMT RATE LF) R-CONDO BLDG ASSMT RATE 0.14 $0.08 $4.00 $0.14 The complete Year 1 assessment roll of all parcels to be assessed by the DCV CBD is included in this Report as Appendix I. Step 5. Estimate Total DCV CBD Costs The total projected 20-year DCV CBD special benefit costs are shown in the Table on page 16 of this Report assuming a maximum 7% increase per year. Step 6. Separate General Benefits from Special Benefits and Related Costs (Article XIIID) Total Year 1 special and districtwide general benefit related costs are estimated at $693,762. Districtwide general benefits are factored at 2.0% of the total benefit value (see Finding 2 of this Report) with special benefits set at 98.0%. Article XIIID limits the levy of property assessments to costs attributed to special benefits only. The 2.0% general benefit value is computed to be $14,158 with a resultant 98.0% special benefit limit computed at $693,762. Based on current property data and land uses, this is the maximum amount of Year 1 revenue that can be derived from property assessments from the subject District. All program costs associated with district-wide and site/activity specific general benefits will be derived from sources other than DCV CBD assessments. Step 7. Calculate “Basic Unit Cost” With a YR 1 assessment revenue portion of the budget set at $693,762 (special benefit only), the Unit Costs rates) are shown earlier in Step 4. The DCV CBD is proposed for a 20-year term. An annual inflationary assessment rate increase of up to 7%, commensurate to special benefits received by each assessed parcel, may be imposed for future year assessments, on approval by the DCV CBD Property Owner’s Association. The maximum assessment rates for years 1-20 are shown in the Table below. The assessment rates listed constitute the maximum assessment rates that may be imposed for each year of the 20-year DCV CBD term. DCV CBD – Maximum Assessment Rates - Years 1-20 Includes a 7%/Yr. Max Increase) YEAR BLDG ASSMT RATE SF) LAND ASSMT RATE SF ) FRONTAGE ASSMT RATE LF) R-CONDO BLDG ASSMT RATE SF) 1 $0.1400 $0.0800 $4.0000 $0.1400 2 $0.1498 $0.0856 $4.3480 $0.1522 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 394 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 25 3 $0.1603 $0.0916 $4.7263 $0.1654 4 $0.1715 $0.0980 $5.1375 $0.1798 5 $0.1835 $0.1049 $5.5845 $0.1954 6 $0.1963 $0.1122 $6.0704 $0.2124 7 $0.2100 $0.1201 $6.5985 $0.2309 8 $0.2247 $0.1285 $7.1726 $0.2510 9 $0.2404 $0.1375 $7.7966 $0.2728 10 $0.2572 $0.1471 $8.4749 $0.2965 11 $0.2752 $0.1574 $9.2122 $0.3223 12 $0.2945 $0.1684 $10.0137 $0.3503 13 $0.3151 $0.1802 $10.8849 $0.3808 14 $0.3372 $0.1928 $11.8319 $0.4139 15 $0.3608 $0.2063 $12.8613 $0.4499 16 $0.3861 $0.2207 $13.9802 $0.4890 17 $0.4131 $0.2361 $15.1965 $0.5315 18 $0.4420 $0.2526 $16.5186 $0.5777 19 $0.4729 $0.2703 $17.9557 $0.6280 20 $0.5060 $0.2892 $19.5178 $0.6826 Step 8. Spread the Assessments The resultant assessment spread calculation results for each parcel within the DCV CBD are shown in the Plan and this Report and were determined by applying the DCV CBD assessment formula to each identified benefiting property. Miscellaneous DCV CBD Provisions Time and Manner of Collecting Assessments: Assessments shall be collected at the same time and in the same manner as ad valorum taxes paid to San Diego County. The DCV CBD assessments shall appear as a separate line item on the property tax bills issued by San Diego County. The City of Chula Vista is authorized to collect any assessments not placed on the County tax rolls, or to place assessments, unpaid delinquent assessments, or penalties on the County tax rolls as appropriate to implement the Plan. Bonds: No bonds are to be issued in conjunction with the proposed DCV CBD. Duration: As allowed by the Ordinance, the DCV CBD will have a 20-year operation term, beginning January 1, 2027 and ending December 31, 2046. At that time, the DCV CBD may be renewed again in accordance with the Ordinance. Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 395 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 26 APPENDIX 1 DCV CBD YR 1 ASSESSMENT ROLL Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 396 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 27 APN Year 1 Assessment 566-232-10-00 $6,549.52 566-232-13-00 $3,300.16 566-232-17-00 $7,056.00 566-232-18-00 $400.00 566-240-11-00 $1,829.98 566-240-28-00 $1,742.00 566-240-29-00 $3,247.44 566-240-30-00 $7,847.84 568-043-14-00 $9,656.00 568-043-15-00 $827.12 568-043-16-00 $1,076.32 568-043-17-00 $881.72 568-043-18-00 $829.92 568-043-20-00 $916.16 568-043-21-00 $826.84 568-043-22-00 $2,591.60 568-044-01-00 $1,760.00 568-044-02-00 $700.00 568-044-03-00 $918.68 568-044-04-00 $871.36 568-044-05-00 $1,036.00 568-044-06-00 $993.86 568-044-07-00 $852.04 568-044-08-00 $1,196.16 568-044-09-00 $588.00 568-044-10-00 $1,400.00 568-044-11-00 $1,820.00 568-044-12-00 $1,775.60 568-044-13-00 $1,166.36 568-044-14-00 $1,281.60 568-044-15-00 $1,311.00 568-044-16-00 $1,079.16 568-044-17-00 $680.76 568-044-18-00 $1,816.60 568-044-19-00 $660.00 568-044-20-00 $1,092.60 568-044-21-00 $981.44 568-044-22-00 $1,304.00 568-044-23-00 $1,878.30 568-071-01-00 $1,786.48 568-071-02-00 $1,342.52 568-071-03-00 $930.08 568-071-04-00 $646.76 568-071-05-00 $2,840.76 568-071-06-00 $597.12 568-071-07-00 $594.00 568-071-08-00 $1,073.02 568-071-09-00 $663.52 568-071-12-00 $1,058.88 568-071-13-00 $1,045.62 568-071-14-00 $1,278.08 568-071-15-00 $1,298.18 568-071-16-00 $2,922.48 568-071-17-00 $1,868.06 568-071-18-00 $1,207.68 568-071-19-00 $876.48 568-071-20-00 $1,120.68 568-071-23-00 $987.40 568-071-24-00 $2,210.18 568-071-25-00 $5,466.02 568-072-03-00 $1,008.50 568-072-04-00 $1,634.44 568-072-05-00 $1,049.52 568-072-06-00 $813.36 568-072-08-00 $1,278.34 568-072-09-00 $1,346.10 568-072-10-00 $1,029.56 568-072-11-00 $1,223.32 568-072-22-00 $1,859.92 568-072-23-00 $1,837.06 568-072-26-00 $1,262.56 568-072-28-00 $506.88 568-151-01-01 $324.08 568-151-01-02 $356.28 568-151-01-03 $345.64 568-151-01-04 $351.52 568-151-01-05 $308.40 568-151-01-06 $349.84 568-151-01-07 $383.16 568-151-01-08 $365.94 568-151-01-09 $365.94 568-151-01-10 $414.52 568-151-01-11 $360.62 568-151-01-12 $429.64 568-151-01-13 $358.80 568-151-01-14 $374.48 568-151-01-15 $321.28 568-151-01-16 $364.68 568-151-01-17 $371.96 568-151-01-18 $383.16 568-151-01-19 $322.68 568-151-01-20 $388.90 568-151-01-21 $426.98 568-151-02-00 $729.12 568-151-03-00 $1,201.48 568-151-08-00 $896.28 568-151-10-00 $1,160.60 568-151-11-00 $1,321.68 568-151-22-00 $7,233.48 568-151-23-00 $3,034.98 568-152-02-00 $700.00 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 397 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 28 568-152-03-00 $700.00 568-152-04-00 $1,981.04 568-152-06-00 $1,319.00 568-152-07-00 $973.70 568-152-08-00 $1,428.00 568-152-09-00 $1,260.00 568-152-10-00 $787.50 568-152-11-00 $1,012.20 568-152-13-00 $1,203.02 568-152-16-00 $1,538.46 568-152-17-00 $1,629.70 568-152-18-00 $1,317.60 568-152-19-00 $1,300.00 568-152-20-00 $1,142.22 568-152-22-00 $3,480.70 568-152-28-00 $2,520.30 568-152-29-00 $700.00 568-152-30-00 $1,042.94 568-152-31-00 $1,280.70 568-152-32-00 $3,368.48 568-153-02-00 $24,957.10 568-161-03-00 $1,601.20 568-161-04-00 $2,101.20 568-161-05-00 $524.22 568-161-06-00 $714.72 568-161-07-00 $672.00 568-161-09-00 $648.00 568-161-10-00 $1,188.00 568-161-11-00 $1,328.00 568-161-12-00 $1,377.00 568-161-13-00 $688.50 568-161-22-00 $1,149.92 568-161-23-00 $990.04 568-161-24-00 $990.04 568-161-25-00 $8,815.20 568-161-26-00 $2,044.84 568-161-27-00 $664.00 568-161-28-00 $1,720.28 568-161-34-00 $4,936.74 568-161-35-00 $1,749.68 568-161-36-00 $666.80 568-161-37-00 $594.00 568-161-38-00 $3,125.94 568-162-01-00 $1,649.04 568-162-02-00 $914.02 568-162-03-00 $1,054.86 568-162-05-00 $1,370.00 568-162-06-00 $1,144.18 568-162-07-00 $1,072.22 568-162-08-00 $856.76 568-162-09-00 $785.28 568-162-10-00 $924.42 568-162-11-00 $2,206.32 568-270-20-00 $3,276.02 568-270-21-00 $14,993.62 568-270-22-00 $6,949.92 568-270-23-00 $2,709.44 568-270-27-00 $2,513.20 568-270-29-00 $35,839.76 568-270-30-00 $3,786.26 568-270-31-00 $31,023.48 568-300-44-00 $3,643.84 568-300-46-00 $7,167.44 568-333-01-00 $3,211.52 568-333-02-00 $657.00 568-333-03-00 $657.00 568-333-04-00 $1,282.20 568-333-05-00 $828.00 568-333-06-00 $572.92 568-333-07-00 $578.50 568-333-08-00 $1,169.40 568-333-09-00 $3,509.60 568-333-10-00 $3,892.32 568-333-11-00 $7,956.96 568-334-01-00 $3,116.10 568-334-02-00 $687.00 568-334-03-00 $660.50 568-334-04-00 $2,723.34 568-334-16-00 $7,412.64 568-350-02-00 $907.60 568-350-03-00 $940.00 568-350-06-00 $1,569.56 568-350-07-00 $1,910.04 568-350-16-00 $1,146.30 568-350-19-00 $2,051.36 568-350-21-00 $1,045.06 568-350-23-00 $408.64 568-350-37-00 $3,321.20 568-350-39-00 $1,660.40 568-350-40-00 $1,391.46 568-350-43-00 $2,047.90 568-350-45-00 $379.56 568-350-48-00 $3,564.00 568-351-01-00 $1,132.00 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 398 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 29 568-351-02-00 $1,142.58 568-351-03-00 $1,731.58 568-351-04-00 $1,214.40 568-351-05-00 $350.00 568-351-06-00 $1,750.00 568-410-20-00 $3,801.20 568-410-29-00 $2,571.36 568-410-37-00 $10,128.42 568-410-62-00 $2,725.66 568-420-01-00 $2,371.50 568-420-02-00 $907.52 568-420-03-00 $1,045.00 568-420-04-00 $517.74 568-420-05-00 $447.60 568-420-06-00 $931.20 568-420-14-00 $2,220.00 568-420-15-00 $2,328.40 568-420-31-00 $792.00 568-450-28-00 $1,433.08 568-450-29-00 $974.16 568-450-30-00 $977.24 568-450-31-00 $1,308.36 568-450-32-00 $1,066.20 568-450-33-00 $5,586.40 568-450-50-00 $1,267.12 568-450-51-00 $5,105.36 568-450-55-00 $3,983.10 568-450-66-00 $20,965.34 568-450-67-00 $25,275.36 568-450-68-00 $1,971.60 568-450-70-00 $4,224.16 568-450-72-00 $20,139.24 568-511-21-00 $2,706.98 568-512-37-00 $1,596.00 568-512-39-00 $2,000.00 568-512-46-00 $4,459.04 573-010-14-00 $1,550.94 573-010-15-00 $845.60 573-010-16-00 $2,803.60 573-010-21-00 $3,083.68 573-010-23-00 $4,354.34 573-040-01-00 $3,014.24 573-040-02-00 $600.00 573-040-03-00 $540.00 573-040-04-00 $624.00 573-040-19-00 $5,620.00 573-061-01-00 $1,291.90 573-062-01-00 $1,150.88 573-062-25-00 $1,194.08 573-063-01-00 $1,450.00 573-063-08-00 $2,219.84 573-100-37-00 $5,049.16 573-100-38-00 $17,423.10 573-100-39-00 $65,181.00 573-110-01-00 $1,197.98 573-110-02-00 $1,013.60 573-110-03-00 $938.28 573-110-24-00 $3,745.90 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 399 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 30 APPENDIX 2 DCV CBD BOUNDARY MAP Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 400 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda DOWNTOWN CHULA VISTA CBD – ASSESSMENT ENGINEER’S REPORT 31 Item 7.2 - Written Communications Limandri - Received 09/01/2026 Page 401 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda From: Ron Richie < Sent: Tuesday, September 1, 2026 10:13 AM To: CityClerk <CityClerk@chulavistaca.gov> Subject: Regarding Item 7.2 on Council Agenda: Establishment of Downtown Chula Vista Community Benefit District You don't often get email from Learn why this is important WARNING - This email originated from outside the City of Chula Vista. Do not click any links and do not open attachments unless you can confirm the sender. PLEASE REPORT SUSPICIOUS EMAILS BY USING THE PHISH ALERT REPORT BUTTON or to reportphishing@chulavistaca.gov Dear Honorable Mayor & Chula Vista City Council, Hello! My name is Ron Richie, and I’m writing today representing Grind House to speak to the value the Downtown Chula Vista Association (DCVA) activities in downtown and to also lend my support for Item 7.2 on the City Council agenda for the establishment of the Downtown Chula Vista Community Benefit District. My business has operated in downtown for over 9.5 years, and in that time, I can speak to the value and positive activity the DCVA has generated for the downtown area as well as for my business. The daily maintenance services, enhanced landscaping and unique special events organized by the DCVA gives downtown a welcoming appeal and vibrancy that I believe benefits all our downtown stakeholders. I also appreciate the responsiveness and approachability of the DCVA office staff and maintenance workers, as they both work diligently to ensure downtown is presentable and prosperous for businesses of all types. Thank you for your attention to this important issue. Sincerely, Ron Richie Owner GrindHouse Chula Vista Sent from my iPhone Item 7.2 - Written Communications Richie - Received 9/1/2026 Page 402 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda From: Downtown Chula Vista <info@downtownchulavista.com> Sent: Tuesday, September 1, 2026 11:49 AM To: CityClerk <CityClerk@chulavistaca.gov> Subject: Item 7.2 Establishment of Downtown Chula Vista Community Benefit District Letter of Support You don't often get email from info@downtownchulavista.com. Learn why this is important WARNING - This email originated from outside the City of Chula Vista. Do not click any links and do not open attachments unless you can confirm the sender. PLEASE REPORT SUSPICIOUS EMAILS BY USING THE PHISH ALERT REPORT BUTTON or to reportphishing@chulavistaca.gov To Whom it May Concern, Please see attached letters of support regarding Item 7.2 on today’s Council meeting, regarding the establishment of Downtown Chula Vista Community Benefit District. Enclosed, you will find a total of 12 letters expressing support. Thank you for your time. MICHELLE THOMAS de MERCADO Downtown Chula Vista Association 353 Third Avenue Chula Vista, CA 91910 619-422-1982 Website: DowntownChulaVista.com Facebook: DowntownChulaVista Instagram: DowntownChulaVista Item 7.2 - Written Communications Thomas de Mercado - Received 9/1/2026 Page 403 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda TikTok: DowntownChulaVista Twitter: DowntownChula DowntownChulaVista Where Culture & Community Meet Item 7.2 - Written Communications Thomas de Mercado - Received 9/1/2026 Page 404 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda tem 7.2 - Written Communications Thomas de Mercado - Received 9/1/2026 Page 405 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda tem 7.2 - Written Communications Thomas de Mercado - Received 9/1/2026 Page 406 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda tem 7.2 - Written Communications Thomas de Mercado - Received 9/1/2026 Page 407 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda tem 7.2 - Written Communications Thomas de Mercado - Received 9/1/2026 Page 408 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda tem 7.2 - Written Communications Thomas de Mercado - Received 9/1/2026 Page 409 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda tem 7.2 - Written Communications Thomas de Mercado - Received 9/1/2026 Page 410 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda tem 7.2 - Written Communications Thomas de Mercado - Received 9/1/2026 Page 411 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda tem 7.2 - Written Communications Thomas de Mercado - Received 9/1/2026 Page 412 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Item 7.2 - Written Communications Thomas de Mercado - Received 9/1/2026 Page 413 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda tem 7.2 - Written Communications Thomas de Mercado - Received 9/1/2026 Page 414 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Item 7.2 - Written Communications Thomas de Mercado - Received 9/1/2026 Page 415 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Item 7.2 - Written Communications Thomas de Mercado - Received 9/1/2026 Page 416 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda tem 7.2 - Written Communications Thomas de Mercado - Received 9/1/2026 Page 417 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 418 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 419 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 420 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 421 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 422 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 423 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 424 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Item 7.2 Community Benefit District: Preliminary Approval of the Final Assessment Engineer’s Report; Expressing Intention to Establish the Downtown Chula Vista Community Benefit District for Twenty years; and Setting the Public Hearing on Such Establishment David Graham, Director of Economic Development Chula Vista City Council September 1, 2026 Page 425 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 6 Recommended Actions •Adopt a resolution preliminarily approving the final Assessment Engineer’s Report •Expressing the intention to establish the Downtown Chula Vista Community Benefit District for a period of twenty (20) years •Setting the public hearing on such establishment (for November 10) •Authorizing the City Manager to vote in favor of establishing the district for all parcels within the district boundaries owned by the City. Page 426 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 3 Existing District •Over 200 similar districts in CA •16 Blocks along Third Ave •Assessment of property owners towards special benefit •Downtown PBID formed in 2001 •Renewed in 2006 and 2016 •Expires December 31, 2026 Page 427 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 6 Page 428 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 5 District Structure & Management Page 429 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 6 District Formation •Only property owners are assessed •Petition exceeding 30% of property owners weighted assessment •Role of the City o Receive and confirm petitions exceed threshold o Call a public hearing o Send ballots to all affected property owners •Limited to determining sufficient property-owner support to call public hearing and send ballots Page 430 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 7 Proposed District Formation •DVCA - Greater Third Avenue Improvement Association approved renewal plan in January •Petition drive May through August •Engineers Report submitted •Petitions sent to all affected property owners o Boundaries, specifying location of district plan o Management District Plan posted to DVCA •Petitions represent 34.1% of weighted property owner support Page 431 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 8 Petition Results •Approval by 34.1% of the weighted assessed property owners •Exceeds required threshold of 30% •Petitions include the County of San Diego and Sweetwater Authority •City approved 2001, 2006, and 2016 •City properties represent 17.5% of the district •Action to have City support represents 51.6% district support Page 432 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 10 Existing vs. Future District Existing •251 parcels •Along 3rd Ave. bounded by E St. (north), I St. (south •Formula: Street Frontage & Land Area •$461,849 - 2026 Assessment Revenue •Services include Civil Sidewalks, Clean & Safe, District Identity, Placemaking, and Special Events Proposed •253 parcels •Mirrors existing district along 3rd Ave. bounded by E St. (north), I St. (south) •Completes the midblock extension to 4th Ave. on H St. (west) •Formula: Street Frontage, Land Area, Building Square Footage •$693,762 – 2027 Assessment Revenue •Services include Civil Sidewalks, Clean & Safe, District Identity, Placemaking, and Special Events Page 433 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 11 Existing vs. Proposed District Proposed •253 parcels •Mirrors existing district •Three parcels north of E. added to include properties that benefit •Eight parcels north and south of H St. include properties that benefit and complete 3rd Ave. to 4th Ave. block o Support – Edward Arms Apts. Urbana, First Citizens Bank o Oppose – No opposition. •Thirteen parcels that are single-family residential excluded from the district Page 434 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 12 Existing vs. Proposed •Assessment formula includes o Building Area o Land Area o Street Frontage o Residential Condo Building Area •Excludes single-family residential •Continuation of services with benefit to approximately 11 new properties Page 435 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 13 Proposed Activities & Benefits •Special benefit services for property owners in a defined geographic area •Expansion of sidewalk sweeping, pressure-washing, graffiti removal, and trash removal •Enhanced landscaping & maintenance •Hyper-local engagement •Special events partner •District non-assessment revenue effectively doubles the value of assessments Page 436 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 13 Next Steps •Send ballots to affected property owners •Conduct Public Hearing on Nov. 10 o Public ballot counting o Review the Management District Plan o Approve the final Engineers Report •Evaluate existing operating agreement •Assessment commences on Jan. 1, 2027 Page 437 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 14 Recommended Actions •Adopt a resolution preliminarily approving the final Assessment Engineer’s Report •Expressing the intention to establish the Downtown Chula Vista Community Benefit District for a period of twenty (20) years •Setting the public hearing on such establishment (for November 10) •Authorizing the City Manager to vote in favor of establishing the district for all parcels within the district boundaries owned by the City. Page 438 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Thank You Page 439 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Existing vs. Proposed District Page 440 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Proposed District •Bounded on the West by 4th Ave. •Exclude single-family residential •Include two properties on E St. •Include remaining H St. frontage properties between 3rd Ave. & 4th Ave. o Urbana, Citibank, 7-11, Offices •Provides substantially the same services as the existing district Page 441 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 6 Page 442 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda v . 0 0 5 P a g e | 1 September 1, 2026 ITEM TITLE Agreement: Approve an Encampment Delegated Maintenance Agreement with California Department of Transportation (“Caltrans”) for Encampment Removal Activities Along Interstate 5 from Main Street to E Street Report Number: 26-0208 Location: Interstate 5 from Main Street to E Street (Post Miles: 5.4 to 8.6) Department: Housing and Homeless Services, Police, and Public Works G.C. § 84308 Regulations Apply: No Environmental Notice: The project qualifies for a Categorical Exemption pursuant to California Environmental Quality Act (“CEQA”) Guidelines Section 15301 Class 1 (Existing Facilities), which categorically exempts maintenance activities such as the removal of litter and debris. Recommended Action Adopt a resolution authorizing the City Manager to enter into an Encampment Delegated Maintenance Agreement for a reimbursable amount in fiscal year 2026-27 of up to $200,000 and appropriate funds therefor. (4/5 Vote Required) SUMMARY Beginning in 2025, Caltrans began entering into reimbursement agreements with municipalities that desire to take a more active role in removal of encampments within State right-of-way, to address health and safety issues along the State Interstate system. The recommended action, if approved, would authorize the City of Chula Vista (“City”) to enter into an Encampment Delegated Maintenance Agreement (“EDMA”) for up to $200,000 in reimbursable costs during fiscal year 2026-27 to clear encampments along Interstate 5 from Main Street to E Street. ENVIRONMENTAL REVIEW The proposed activity has been reviewed for compliance with CEQA, and it has been determined that the project qualifies for a Categorical Exemption pursuant to CEQA Guidelines Section 15301 (Existing Facilities), which consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of Page 443 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda P a g e | 2 existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use; and where the exceptions listed in CEQA Guidelines Section 15300.2 would not apply in that no cumulative impacts were identified, no significant effects on the environment were identified, the project is not adjacent to a scenic highway, no historical resources would be affected by the action, and the project was not identified on a list of hazardous waste sites pursuant to Section 65962.5 of the Government Code. Thus, no further environmental review is required. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not applicable. DISCUSSION Caltrans began entering into EDMAs with local jurisdictions in 2025, responding to Governor Gavin Newsom’s directives and introduction of a model encampment ordinance to expedite the removal of encampments throughout California. An EDMA is a collaborative contract that allows local municipalities to perform maintenance, such as clearing debris, removing hazards, and addressing unsheltered encampments, with the costs reimbursed by the State to clear unsafe and unsanitary homeless encampments along freeways in the State-owned highway rights-of-way. EDMAs provide a faster and far more efficient process to clear encampments and connect those living in them with resources that will ultimately end their homelessness. The City has been working with Caltrans since summer of 2025 on drafting an EDMA, and in late April 2026, Caltrans District 11 was authorized to present the City with a draft for review. Since that time, final details related to enforcement in state right-of-way were being discussed between state agencies, resulting in a final EDMA in late August, and the recommended resolution will authorize the City to execute the EDMA (Attachment 1). Under the EDMA for this pilot program, Caltrans will reimburse the City for up to $200,000 of costs incurred through June 30, 2027, to clean up encampments along Interstate 5 from Main Street to E Street (approximately 3.2 miles), as shown in Figure 1. The EDMA specifically prohibits the use of funds for law enforcement or outreach activities and only reimburses for direct costs associated with the encampment clean-up activities. Figure 1: EDMA Service Area (Interstate 5) Page 444 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda P a g e | 3 Staff recommends that City Council authorize the City Manager to enter into the EDMA. The City will make all attempts to maximize existing resources through the Homeless Outreach Team to coordinate with Caltrans and provide outreach resources to the unhoused population in this area. Police Department overtime may be impacted to coordinate and assist with enforcement, but to the maximum extent possible will be absorbed within the Department’s existing budget. A Request for Proposal process is underway to select contractors who will serve as the primary resource for encampment clean-up along the targeted areas of State property. The City will make every effort to keep expenses within the reimbursable amount for fiscal year 2026–27. Other Related Grant Opportunities The City has simultaneously partnered on an application to the California Department of Housing and Community Development for the Encampment Resolution Fund (“ERF”). The County of San Diego’s Housing and Community Development Services served as the lead applicant in partnership with the City, the City of National City, and Caltrans. Successful applicants will be notified in September 2026 with funding awarded in January 2027. If successful, the ERF would cover funding for outreach services and housing resources to unsheltered in encampments along Interstate 5 from Main Street located in Chula Vista to Division Street located in National City, consisting of approximately 5.5 miles of state right-of way. DECISION-MAKER CONFLICT Staff has reviewed the property holdings of the City Council members and have found no property holdings within 1,000 feet of the boundaries of the property, which is the subject of this action. Consequently, this item does not present a disqualifying real property-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(7) or (8), for purposes of the Political Reform Act (Cal. Gov’t Code §87100, et seq.). Staff is not independently aware and has not been informed by any City Council member of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter. CURRENT-YEAR FISCAL IMPACT The action would appropriate up to $200,000 in fiscal year 2026-27 for encampment clean-up efforts in the approved state right-of-way, which will be reimbursed by Caltrans through the EDMA. Staff costs associated with outreach, Police Department support, and other ancillary services related to the unhoused in this area are expected to be supported through the fiscal year 2026-27 budget. ONGOING FISCAL IMPACT There is no ongoing fiscal impact as the agreement will expire on June 30, 2027. ATTACHMENTS 1. Encampment Delegated Maintenance Agreement with Caltrans Staff Contact: Stacey Kurz, Director of Housing and Homeless Services Page 445 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Form Rev 9/30/2025 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE CITY MANAGER TO ENTER INTO AN ENCAMPMENT DELEGATED MAINTENANCE AGREEMENT WITH THE CALIFORNIA DEPARTMENT OF TRANSPORTATION FOR A REIMBURSABLE AMOUNT IN FISCAL YEAR 2026-27 OF UP TO $200,000 AND APPROPRIATE FUNDS THEREFOR WHEREAS, the City of Chula Vista (“City”) has pursued the opportunity to enter into an Encampment Delegated Maintenance Agreement (“EDMA”) with the California Department of Transportation (“Caltrans”) attached herein as Exhibit A; and WHEREAS, this EDMA would authorize the City to take over encampment maintenance services along the Interstate 5 freeway from Main Street (mile post 5.4) to E Street (mile post 8.6), which provide access to and from the City; and WHEREAS, these responsibilities would include the removal of litter and debris as it relates to the removal of encampments; and WHEREAS, the EDMA aligns with the City’s ongoing efforts to address issues associated with unsheltered encampments and to maintain safety and cleanliness in the State right-of-way; and WHEREAS, pursuant to the EDMA, the maintenance activities authorized under the EDMA are reimbursable by Caltrans up to $200,000; and WHEREAS, maintenance activities are Categorically Exempt pursuant to Section 15301 Class 1 of the California Environmental Quality Act Guidelines. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it approves the EDMA, between the City and Caltrans, in the form presented, with such minor modifications as may be required or approved by the City Attorney, a copy of which shall be kept on file in the Office of the City Clerk, and authorizes and directs the City Manager to execute the same, for a reimbursable amount in fiscal year 2026-27 of up to $200,000. BE IT FURTHER RESOLVED, by the City Council of the City of Chula Vista, that it hereby amends the fiscal year 2026-27 budget by appropriating $200,000 to the Supplies & Services category in the State Grants Fund. Page 446 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Resolution No. Page 2 Presented by Approved as to form by Stacey Kurz Marco A. Verdugo Director of Housing and Homeless Services City Attorney Page 447 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda EDMA-26-11-SD-VARIOUS-TDC-02 Chula Vista-Route 5 ENCAMPMENT DELEGATED MAINTENANCE AGREEMENT WITH THE CITY OF CHULA VISTA This ENCAMPMENT DELEGATED MAINTENANCE AGREEMENT (“AGREEMENT”) is made by and between the State of California, acting by and through the Department of Transportation (“STATE”) and the City of Chula Vista (“LOCAL AGENCY”); each may be referred to individually as a “PARTY” and jointly as “PARTIES.” RECITALS 1. This AGREEMENT will identify specific maintenance functions the LOCAL AGENCY will perform in the STATE right of way, including highway and freeway areas situated within STATE’s jurisdictional limits as authorized under Streets and Highways Code Section 114 and 116. 2. This AGREEMENT does not supersede any Freeway Agreements or Maintenance Agreements executed by the PARTIES. OPERATIVE PROVISIONS 1. Maintenance Services. LOCAL AGENCY shall perform maintenance operations as set forth in this AGREEMENT, at the State Route(s) identified in Exhibit A. Maintenance operations include the removal of encampments, litter, and debris. 2. Prior Delegated Maintenance Agreements. This AGREEMENT does not supersede the PARTIES’ prior Delegated Maintenance Agreement(s), Freeway Agreements or Maintenance Agreements executed by the PARTIES. The previous agreements shall remain in full force and effect. 3. Maintenance Standards. LOCAL AGENCY shall perform all “maintenance” as defined in Streets and Highways Code Section 27 and in compliance with the standards set forth in STATE policies, procedures, and specifications in effect and as amended. LOCAL AGENCY shall also follow applicable municipal ordinances as long as it is not in conflict with STATE laws, policies, procedures, and specifications. 4. Maintenance Areas and Services. LOCAL AGENCY shall only perform maintenance services in the STATE right of way locations described in Exhibit A, hereinafter referred as LOCATIONS. 5. REVISING EXHIBITS. PARTIES can revise this AGREEMENT by mutually Page 448 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda EDMA-26-11-SD-VARIOUS-TDC-02 Chula Vista-Route 5 amending, replacing, or providing additional pages to the Exhibits. Any such change must be signed by authorized representatives of PARTIES, and no formal amendment to the body of this AGREEMENT will be necessary. The revised Exhibit will thereafter supersede the previous Exhibit and become part of this AGREEMENT. 6. AMENDMENT TO AGREEMENT. Except as provided in the preceding sections concerning Exhibit amendments, the terms of this AGREEMENT may only be amended by a formal written amendment executed by both PARTIES. 7. Unsheltered Encampment Removal. A. Definitions: 1. MPD 1001 R1 (Exhibit D) - Maintenance Policy Directive issued by the State, establishes the agency's official policy for the removal of encampments from state highway rights-of-way. Please refer to MPD 1001 R1 2. PEH- Persons Experiencing Homelessness 3. Priority Level 1 (Critical Priority for Expeditious Removal) Encampments that pose an imminent threat to life, health, safety, or infrastructure require immediate removal without prior notice. Examples of Imminent Threats: • Encampment close to traffic, with PEHs at immediate risk of being struck by vehicles. • PEHs living in confined spaces, such as bridge cells. • Encampment near an unstable structure at risk of collapse. Please refer to MPD 1001 R1. 4. Priority Level 2 (Removal Needed) Encampments that do not pose an immediate threat. Please refer to MPD 1001 R1. B. Factual determination of whether an encampment is Priority Level 1 will need prior confirmation by the STATE Encampment Specialist Maintenance Superintendent. C. Immediately upon discovery and receiving confirmation as provided in the preceding clause, by the STATE Encampment Specialist Maintenance Superintendent, LOCAL AGENCY may remove Level 1 encampments and shall inform by phone and Page 449 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda EDMA-26-11-SD-VARIOUS-TDC-02 Chula Vista-Route 5 email of such removal, the STATE’s Encampment Specialist Maintenance Superintendent. Removal of Level 1 encampments shall be pursuant to MPD 1001 R1. D. LOCAL AGENCY shall remove Level 2 encampments and in doing so shall adhere to STATE standards for working with PEH at the LOCATIONS, as detailed in MPD 1001 R1 and applicable State and Federal law. E. When possible, allow two weeks to perform outreach services for priority Level 2 encampments. LOCAL AGENCY shall submit an Encampment Removal Request Form to the STATE’s Encampment Specialist Maintenance Superintendent and include all requested information including timestamped photos (LOCAL AGENCY shall not move forward until the Removal Request has been approved and signed by appropriate STATE personnel. Within one week of the completion date of a removal, the LOCAL AGENCY shall complete and submit to the STATE’s Encampment Coordinator all information required in the After-Action Report, including after photos. LOCAL AGENCY may use alternative forms or reporting templates so long as all required information is included. F. Nothing in this Agreement grants or waives the right of California Highway Patrol (CHP) and other law enforcement agencies having jurisdiction over the LOCATIONS. 8. Maintenance Service Schedule. LOCAL AGENCY shall provide STATE’s District Area Maintenance Superintendent, as shown in Exhibit C, the maintenance service schedule no less than 7 days telephone or email notice before performing any maintenance services under this AGREEMENT. Their email and phone number are listed on Exhibit C. LOCAL AGENCY shall provide the District Maintenance Agreement Coordinator (DMAC) and District Area Maintenance Superintendent identified in Exhibit C of this AGREEMENT with an encampment removal schedule. Maintenance services shall be provided on an as needed basis. Prior written approval must be received from the STATE’s District Encampment Specialist through the DMAC. Additionally, LOCAL AGENCY shall coordinate with CHP prior to performing any work. Maintenance services shall be performed between the hours of 7:00 a.m. and 3:00 p.m. or as otherwise authorized by the State Representative, if necessary. LOCAL AGENCY must request through the DMAC prior written approval from STATE’s District Maintenance Supervisor to perform any maintenance services before 7:00 a.m. or after Page 450 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda EDMA-26-11-SD-VARIOUS-TDC-02 Chula Vista-Route 5 3:00 p.m. and/or weekends and holidays. 9. Authorized Reimbursement. The functions, frequency and levels of maintenance services delegated to LOCAL AGENCY under this AGREEMENT and amounts appropriated to STATE for this AGREEMENT, have been considered in setting the total reimbursement amounts due to the LOCAL AGENCY under this AGREEMENT. STATE shall reimburse LOCAL AGENCY up to the amount shown in Exhibit A-1. LOCAL AGENCY may perform additional work if desired, but STATE will not reimburse LOCAL AGENCY for any work in excess of the authorized dollar limits established herein. 10. Billing, Payment and Reporting. 10.1 Billing Date. LOCAL AGENCY shall promptly submit billing invoices in arrears to the STATE, for each past quarter including the period prior to the close of STATE’s fiscal year on each June 30th. 10.2 Billing Submission Format. Each billing invoice shall include all of the following: a. STATE’s AGREEMENT number; b. Date(s) of services; c. Location of services; d. Number of hours and hourly rates; e. Receipts for trash disposal; and f. Receipts for equipment, materials, and supplies; g. Before and after photos. STATE shall pay LOCAL AGENCY for the actual cost of maintenance services which is satisfactorily performed but shall not exceed the amounts shown in Exhibit A-1. 11. Successors. This AGREEMENT shall be binding upon and inure to the benefit of each of the PARTIES’ successors-in-interest, including, but not limited to any public entity to whom any part of the STATE right of way covered under this AGREEMENT may be relinquished and any subsequently incorporated city or other municipality established within the LOCAL AGENCY’s jurisdictional limits. 12. Legal Disposal of Litter Collected. Page 451 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda EDMA-26-11-SD-VARIOUS-TDC-02 Chula Vista-Route 5 LOCAL AGENCY shall make its own arrangements for the legal disposal of litter or debris materials to authorized disposal sites. LOCAL AGENCY shall not leave any filled litter bags, litter piles or other groups of litter assembled during its maintenance services along or in STATE Right of Way. Such litter groupings shall be removed out of STATE Right of Way each day LOCAL AGENCY performs the maintenance services in this AGREEMENT. 13. Storage of Personal Items. LOCAL AGENCY shall meet the storage requirements of not less than 60 days for any personal property that is collected as set forth in MPD 1001 R-1. LOCAL AGENCY shall follow MPD 1001 R-1 with regard to the items that are to be collected and stored. To the extent LOCAL AGENCY deviates from these requirements, LOCAL AGENCY shall fully defend, indemnify and save harmless STATE and its officers and employees from all claims, suits, or actions of every kind occurring by reason of any deviation from MPD 1001 R-1 as set forth in the indemnification paragraph below. 14. Hazardous Waste and Hazardous Materials. LOCAL AGENCY shall be fully and solely responsible for the proper identification, handling, removal and disposal of all hazardous waste and hazardous material during the performance of maintenance services pursuant to this AGREEMENT as it relates to encampment clean-up activities. 15. Safety and Worker Compliance. LOCAL AGENCY shall be solely responsible for crew pay, workers compensation, and any other benefits required by state and federal law. Subcontractors and crew members are not considered STATE’s employees at any time. LOCAL AGENCY shall comply with all applicable State and Federal statutes and regulations governing worker and public safety, including but not limited to compliance with CAL-OSHA regulations and guidelines. LOCAL AGENCY shall make arrangements through the STATE if traffic controls, flags, signs, or lane closures are necessary to safely perform any maintenance services. STATE’s maintenance Supervisor or designee shall determine what protections are required at the worksite pursuant to applicable provisions of the STATE’s (Caltrans) Maintenance Manual, including but not limited to Volume 1, Chapter 8, Protection of Workers. 16. Equipment and Supplies. LOCAL AGENCY shall provide the necessary Page 452 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda EDMA-26-11-SD-VARIOUS-TDC-02 Chula Vista-Route 5 equipment, tools, personal protective equipment, materials, supplies and products necessary to perform the maintenance services under this AGREEMENT. STATE shall reimburse LOCAL AGENCY for the reasonable costs of such equipment and supplies not to exceed the authorized expenditures set forth in Exhibit A-1. 17. Legal Relations and Responsibilities. 17.1 No Third-party Beneficiaries. This AGREEMENT is not intended to create duties, obligations, or rights of third parties beyond the PARTIES to this AGREEMENT. Nor does this AGREEMENT affect a PARTY’s legal liability by imposing any standard of care for the maintenance of STATE highways different from the standard of care imposed by law. 17.2 Indemnification. Neither STATE nor any of its officers or employees is responsible for any injury, damage or liability occurring by reason of anything done or omitted to be done by LOCAL AGENCY in connection with any work, authority or jurisdiction conferred upon LOCAL AGENCY under this AGREEMENT. LOCAL AGENCY shall fully defend, indemnify, and save harmless STATE and its officers and employees from all claims, suits, or actions of every kind occurring by reason of anything done or omitted to be done by LOCAL AGENCY, its contractors, sub-contractors and/or its agents pursuant to this AGREEMENT. Neither LOCAL AGENCY nor any of its officers or employees is responsible for any injury, damage or liability occurring by reason of anything done or omitted to be done by STATE, in connection with any work, authority or jurisdiction conferred upon STATE under this Agreement. STATE shall fully defend, indemnify, and save harmless LOCAL AGENCY and its officers and employees from all claims, suits, or actions of every kind occurring by reason of anything done or omitted to be done by STATE, its contractors, subcontractors, and/ or its agents pursuant to this Agreement. 17.3 Work-related Injuries. If a LOCAL AGENCY-assigned crew member is injured while performing maintenance services under this AGREEMENT, LOCAL AGENCY or its designated subcontractor shall be responsible for ensuring the crew member is given prompt medical care and treatment and, if necessary, transportation to a medical facility. LOCAL AGENCY or its designated subcontractor Page 453 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda EDMA-26-11-SD-VARIOUS-TDC-02 Chula Vista-Route 5 shall administer any injury and workers compensation claims. LOCAL AGENCY shall notify the STATE’s Area Maintenance Superintendent within twenty-four (24) hours when any such incident has occurred. 18. Prevailing Wages and Labor Compliance. If the work performed under this AGREEMENT falls within the requirement of Prevailing wages as per Labor Code Section 1720 through 1815 LOCAL AGENCY shall comply with any and all applicable labor and prevailing wage requirements in Labor Code Sections 1720 through 1815 and implementing regulations for public works or maintenance contracts and subcontracts executed for the LOCAL AGENCY’s maintenance services under this AGREEMENT. LOCAL AGENCY agrees to include prevailing wage requirements in its contracts for public works. Work performed by LOCAL AGENCY’s own forces is exempt from the Labor Code’s prevailing wage. 19. Insurance. Self-Insured. LOCAL AGENCY is self-insured. LOCAL AGENCY shall deliver evidence of self-insured coverage providing general liability insurance, coverage of bodily injury and property damage liability, in an amount of $1 million per occurrence, $2 million in aggregate, and $5 million in excess by delivering a Letter certifying Self-Insurance. The Letter of Self-Insurance must be substantially in the form of Exhibit B and identify the AGREEMENT number, and location as depicted in Exhibit A. LOCAL AGENCY shall provide the original Letter certifying Self-Insurance as a condition to STATE’s execution of this AGREEMENT. A copy of the original letter shall be attached to this AGREEMENT as Exhibit B. Self-Insured using Contractor. If the work performed under this AGREEMENT is done by LOCAL AGENCY‘s contractor(s), LOCAL AGENCY shall require its contractor(s) to maintain in force, during the term of this AGREEMENT, a policy of general liability insurance, including coverage of bodily injury and property damage liability, naming STATE, its officers, agents and employees as the additional insured in an amount of $1 million per occurrence, $2 million in aggregate, and $5 million in excess. LOCAL AGENCY shall provide a certificate of insurance evidencing this insurance in a form satisfactory to STATE. 20. Budget Contingency. STATE’s payments to LOCAL AGENCY are contingent upon the Legislature appropriating sufficient funds under Page 454 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda EDMA-26-11-SD-VARIOUS-TDC-02 Chula Vista-Route 5 the Budget Act and the encumbrance of funding to STATE’s District Office. 21. Termination. Either PARTY may terminate this AGREEMENT upon 30 days’ prior written notice to the other PARTY . 22. Effective Date (Term) of Agreement. This AGREEMENT shall become effective on the last of the dates each PARTY’s authorized representative has executed this AGREEMENT. This AGREEMENT shall expire on June 30, 2027. 23. Authority. Each individual executing this AGREEMENT on behalf of each PARTY represents and warrants that he/she is duly authorized under the law to execute this AGREEMENT. LOCAL AGENCY represents and certifies that it has, through its regular political process, authorized the execution of this AGREEMENT by appropriate resolution, delegation, or plenary authority as required. Default. If LOCAL AGENCY fails to perform obligations assumed under this agreement, the STATE may, by written notice, request that the default be remedied within thirty (30) calendar days. If LOCAL AGENCY fails or refuses to do so, the STATE may seek legal remedies including specific performance, complete the obligations and refuse to pay LOCAL AGENCY’s future invoices until STATE’s expenses are redeemed. 24. Counterparts. This AGREEMENT may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same document. 25. Electronic Signatures. Electronic signatures of the PARTIES, whether digital or encrypted, are intended to authenticate this written AGREEMENT, and shall have the same force and effect as manual signatures for this AGREEMENT. 26. Party Representatives and Notices. All notices, document submittals and invoices required under this AGREEMENT shall be deemed to have been fully given when made in writing and received by the PARTIES at their respective addresses listed on Exhibit C. 27. List of Exhibits. Exhibit A – Locations Page 455 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda EDMA-26-11-SD-VARIOUS-TDC-02 Chula Vista-Route 5 Exhibit A-1 – Funding Exhibit B – Proof of Insurance Exhibit C- PARTY Representatives and Contacts Exhibit D - Maintenance Policy Directive (MPD) 1001 R1 THE CITY OF CHULA VISTA STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION Approved as to form: Marco A. Verdugo City Attorney APPROVED: Dated: Tiffany Allen City Manager Dated: Harwell Ontoy District Division Chief Maintenance District 11 Page 456 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda EDMA-26-11-SD-VARIOUS-TDC-02 Chula Vista-Route 5 EXHIBIT A LOCATIONS Route No. Description of Routing within STATE Right of Way Adjacent to Local Agency Boundaries I-5 Main St. to E St. Post Miles: 5.4 to 8.6 Page 457 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda EDMA-26-11-SD-VARIOUS-TDC-02 Chula Vista-Route 5 Exhibit A-1 Funding Total maximum authorized expenditure: $200,000 Page 458 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda EDMA-26-11-SD-VARIOUS-TDC-02 Chula Vista-Route 5 EXHIBIT B LETTER CERTIFYING CITY’S SELF-INSURED STATUS On Local Agency letterhead Caltrans District 11 4050 Taylor St. San Diego CA 92110 , 2026 ATTN: Troy Compton District 11 Maintenance Agreement Coordinator Re: Statement of Self-Insurance for CITY of CHULA VISTA for Delegated Maintenance Agreement with California Department of Transportation, Litter Abatement, Supporting Inside Safe at Multiple Locations. Dear Harwell Ontoy, District Division Chief Maintenance: This letter certifies that the CITY of Chula Vista is self-insured and self-funded covering third-party claims arising out of its general operations (i.e.; commercial general liability and automobile liability insurance). Further, the CITY is self- insured covering workers’ compensation claims and has received the consent of the State Department of Industrial Relations to do so. Each fiscal year, as a part of its budgetary process, the CITY appropriates funds specifically to satisfy valid third-party claims and workers’ compensation claims, which may be brought against the CITY. The CITY certifies its self-insured, general liability coverage for bodily injury and property damage liability, meets the required coverage amounts in the insurance of the Encampment Delegated Maintenance Agreement, specifically general liability insurance, coverage of bodily injury and property damage liability in an amount of $1 million per occurrence, $2 million in aggregate, and $5 million in excess. If you need any additional information regarding this letter, please direct those inquiries through my office. Sincerely, Finance Manager/Risk Manager/Authorized Representative’s Title Page 459 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda EDMA-26-11-SD-VARIOUS-TDC-02 Chula Vista-Route 5 EXHIBIT C All notices, document submittals and invoices required under this AGREEMENT shall be deemed to have been fully given when made in writing and received by the PARTIES at their respective addresses as follows: Party Representatives and Notices. LOCAL AGENCY’s Project Manager: STATE’s District Maintenance Agreement Coordinator (DMAC): Troy Compton Email Address: troy.compton@dot.ca.gov Other Contacts for LOCAL AGENCY STATE’s Encampment Specialist Maintenance Superintendent Leonard Sauceda Email:Leonard.Sauceda@dot.ca.gov Phone: (858) 518-8473 Page 460 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda EDMA-26-11-SD-VARIOUS-TDC-02 Chula Vista-Route 5 Exhibit D Maintenance Policy Directive (MPD) 1001 R1 �������� Caltrans Maintenance Policy Directive MPD 1001-R1 (PDF) https://dot.ca.gov/-/media/dot-media/programs/maintenance/documents/mpd-1001r1-10-2022- a11y.pdf Page 461 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Item 7.3 Caltrans Encampment Delegated Maintenance Agreement (EDMA) Prepared by Stacey Kurz, Director Prepared for Housing and Homeless Services Page 462 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 13 26,500 Encampments removed by California Department of Transportation (Caltrans) since July 2021 457,000 Cubic yards of litter & debris EDMAs Encampment Delegated Maintenance Agreement (EDMA) Provide more responsive local clean-up in state right-of-way and safer outcomes for people experiencing homelessness. Page 463 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Chula Vista EDMA Provides Chula Vista ability to address encampments on state right -of-way and receive reimbursement for clean-up. Authority Establishes ability to address encampments in state right-of-way. Funds for Clean-Up Creates reimbursement process for removal of encampments, litter, and debris. Monitoring Allows City to continue addressing encampments through June 30, 2027. Page 464 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 4 Chula Vista EDMA 3.2 miles Interstate 5 from Main to E Street $200,000 Reimbursable Funds for encampment removal, litter, and debris Page 465 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Authorize City Manager to enter the Encampment Delegated Maintenance Agreement for Reimbursement of Encampment Related Clean-up on Interstate 5 between Main and E Street. Recommendation City of Chula Vista Effective Date Upon Agreement Execution On-Call Contractors RFP Concluded Maintenance Level 1 –Caltrans Level 2 – City Contractor Next Steps Page 466 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 2 weeks prior Submit an Encampment Removal Request Conduct Outreach Addressing Priority Level 2 Encampments in EDMA 7 days prior Notification to: Caltrans & California Highway Patrol Within 1 week after Submit an After-Action Report En c a m p m e n t Ma i n t e n a n c e Bi l l i n g & Re i m b u r s e m e n t Page 467 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Reporting Encampments in State Right-of-Way https://csr.dot.ca.gov (619) 688-6699 Page 468 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda v . 0 0 5 P a g e | 1 September 1, 2026 ITEM TITLE Grant Acceptance and Agreements: Accept a Grant and Approve an Agreement with the California Board of State and Community Corrections, Approve Agreements with SBCS Corporation and SANDAG for the Proposition 64 Grant Program, and Appropriate Funds Report Number: 26-0276 Location: No specific geographic location Department: Police G.C. § 84308 Regulations Apply: No Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act (“CEQA”) State Guidelines. Therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Recommended Action Adopt the following resolutions: A. Accepting $3,207,603 in grant funds from the California Board of State and Community Corrections for the Proposition 64 Public Health and Safety Grant Program and appropriating $855,238 to the fiscal year 2026-27 Police Grants Section of the State Grants Fund (4/5 Vote Required) B. Approving Agreement Number BSCC 1430-26 with the Board of State Community Corrections for the Proposition 64 Public Health and Safety Grant Program C. Approving agreements with SBCS Corporation and SANDAG for the Proposition 64 Public Health and Safety Grant Program SUMMARY The Police Department has been awarded $3,207,603 through the California Board of State and Community Corrections (“BSCC”) Proposition 64 Public Health and Safety Cohort 4 grant. The award has been granted to continue the robust program funded by the Cohort 2 and Cohort 3 grants. In partnership with SBCS Corporation (formerly South Bay Community Services) and San Diego Association of Governments (SANDAG), the Police Department will monitor licensed/legal cannabis dispensaries, identify and mitigate Page 469 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda P a g e | 2 illegal dispensaries, continue its youth, parent and community education program, and enhance its youth diversion program for the City. ENVIRONMENTAL REVIEW The proposed activity has been reviewed for compliance with the California Environmental Quality Act (CEQA) and it has been determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not applicable. DISCUSSION Background In May 2021, the Police Department was awarded $1,000,000 through Cohort 2 of the Proposition 64 Public Health and Safety (Prop 64 PH&S) Grant Program for a three-year project period. The grant is funded through the California State and Local Government Law Enforcement Account and administered by the Board of State and Community Corrections (BSCC). The grant supports local efforts to address the public health and safety impacts associated with the legalization of adult-use recreational cannabis in California. In May 2023, the Police Department was awarded $2,705,250 through Cohort 3 of the Prop 64 PH&S Grant Program for a five-year project period. Cohort 3 continued and expanded the City's efforts to address illegal cannabis activity, improve regulatory compliance, and reduce youth access to cannabis. Current Award In June 2026, the City Manager's Office received notification of a $3,207,603 Prop 64 PH&S Cohort 4 grant award. The City will use the grant funding to continue and expand a coordinated, multi-agency initiative involving the City Manager's Office, Police Department, SBCS Corporation, and SANDAG. The proposed project builds upon the City's experience and accomplishments under Prop 64 PH&S Cohorts 2 and 3 and incorporates lessons learned and data collected through those programs. The project is designed to strengthen cannabis regulatory compliance, enhance enforcement efforts, reduce youth access to cannabis, and expand prevention, intervention, and education services. The need for these efforts continues as the community addresses youth cannabis use, declining perceptions of the risks associated with cannabis, and ongoing illegal cannabis activity. The project consists of four integrated components: 1. Cannabis Business Compliance: Police Department will enhance compliance among licensed cannabis businesses through regulatory inspections, business training, product testing, and minor decoy operations. 2. Illegal Cannabis Enforcement: Police Department will proactively identify, investigate, and address illegal cannabis activity through intelligence-driven enforcement efforts and quarterly enforcement operations. Page 470 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda P a g e | 3 3. Youth Safety and Officer Training: Police Department will promote youth safety and enhance officer readiness through training on applicable cannabis laws and regulations, as well as thorough investigations of cannabis-related juvenile cases. 4. Youth Prevention and Intervention: SBCS will provide assessment-driven diversion, prevention, and intervention services to Chula Vista youth. Services will include evidence-based counseling, cannabis education, family engagement, community service opportunities, and community prevention messaging. Grant funding will support the salaries and benefits of a police officer assigned to the Police Department's Special Investigations Unit to oversee the program, administer grant-related activities, review cannabis business license applications, and serve as a liaison with cannabis businesses and the community. For the first two years of the Cohort 4 project, Cohort 3 activities will overlap with Cohort 4 from July 1, 2026, through April 30, 2028. Due to current staffing limitations, an officer working overtime will initially perform the duties associated with the Cohort 4 position until a detective becomes available to assume these responsibilities. Upon completion of Cohort 3, a detective will be assigned to the Cohort 4 program. The grant also provides overtime funding for police personnel to conduct cannabis business inspections and minor decoy operations. Additional grant-funded equipment and enforcement resources include vehicle tracking devices, body armor, enforcement buy/bust funds, two detective vehicles, one evidence van, covert vehicle cameras, and officer training. The grant further provides funding for contractual services with SBCS to deliver youth development, prevention, and intervention programs and with SANDAG to conduct an independent evaluation of the grant program and its outcomes. The Prop 64 PH&S Cohort 4 award covers a five-year project activity period from July 1, 2026, through June 30, 2031. Following the conclusion of the project activity period, an additional six-month closeout period from July 1, 2031, through December 31, 2031, will be used to complete the Final Local Evaluation Report conducted by SANDAG and any required program-specific compliance or financial audit activities. DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the real property holdings of the City Council members do not create a disqualifying real property-related financial conflict of interest under the Political Reform Act. (Gov. Code, § 87100, et seq.) Staff is not independently aware and has not been informed by any City Council member of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter. CURRENT-YEAR FISCAL IMPACT Approval of Resolution A accepts $3,207,603 in grant funds from the Board of State and Community Corrections for the Proposition 64 Public Health and Safety Grant Program. As outlined in the chart below, there is an appropriation of $855,238 to the fiscal year 2026-27 budget for year 1 of the 5-year grant period. Page 471 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda P a g e | 4 CATEGORY FY 2026- 27 FY 2027- 28 FY 2028-29 FY 2029- 30 FY 2030- 31 5-YEAR TOTAL Detective Salaries and Benefits $216,849 $222,952 $229,234 $235,699 $242,351 $1,147,085 Overtime $98,862 $101,644 $104,508 $107,456 $110,488 $522,958 Diversion/Intervention (SBCS) $142,000 $142,000 $142,000 $142,000 $142,000 $710,000 Program Evaluation (SANDAG) $63,000 $63,000 $63,000 $63,000 $63,000 $315,000 Financial Audit $0 $0 $0 $0 $25,000 $25,000 Travel & Training $24,606 $0 $0 $0 $0 $24,606 Level 3 Body Armor $40,000 $0 $0 $0 $0 $40,000 Enforcement Buy+Bust Funds $1,000 $1,000 $1,000 $1,000 $1,000 $5,000 Vehicle Trackers & Service $12,600 $600 $600 $600 $600 $15,000 Detective Vehicle Maintenance $2,800 $2,800 $2,800 $2,800 $2,800 $14,000 Detective Vehicles (2) $136,000 $0 $0 $0 $0 $136,000 Covert Vehicle Camera Car $30,950 $0 $0 $0 $0 $30,950 Evidence Van $55,000 $0 $0 $0 $0 $55,000 Indirect Costs $31,571 $32,460 $33,374 $34,316 $35,283 $167,004 TOTAL BSCC FUNDING $855,238 $566,456 $576,516 $586,871 $622,522 $3,207,603 Specifically, there is a current-year appropriation of $315,711 to the personnel category, $286,006 to the supplies and services category, $31,571 to the other category and $221,950 to the capital category of the fiscal year 2026-27 Police Grants section of the State Grants Fund. The funding from the BSCC will completely offset these costs, resulting in no net fiscal impact to the General Fund. ONGOING FISCAL IMPACT Because the grant period covers multiple fiscal years, subsequent budgets will include the remaining grant expenditures of $2,342,365 (Year 2 – Year 5), outlined in the chart above, as part of the annual budget process. ATTACHMENTS 1. Agreement with BSCC for Proposition 64 Public Health & Safety Grant Program Cohort 3 2. Agreement with SBCS Corporation 3. Agreement with San Diego Association of Governments (SANDAG) Staff Contact: Acting Chief of Police Dan Peak Police Administrative Services Manager Jonathan Alegre Page 472 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING A GRANT FROM THE BOARD OF STATE AND COMMUNITY CORRECTIONS AND APPROPRIATING FUNDS THEREFOR WHEREAS, the City of Chula Vista desires to participate in the Proposition 64 Public Health and Safety Grant Program funded through the California State and Local Government Law Enforcement Account and administered by the Board of State and Community Corrections (BSCC); and WHEREAS, on June 26, 2026, the City Manager’s Office received notice from BSCC of a $3,207,603 competitive award of Proposition 64 Public Health and Safety Cohort 4 grant to address local impacts due to the legalization of adult-use recreational cannabis in California; and WHEREAS, funds from the Proposition 64 Public Health and Safety Cohort 4 Grant builds upon the City's experience and accomplishments under Cohorts 2 and 3 projects and strengthens cannabis regulatory compliance, enhances enforcement efforts, reduces youth access to cannabis, and expands prevention, intervention, and education services; and WHEREAS, the Proposition 64 Public Health and Safety Cohort 4 Grant covers a five- year project activity period from July 1, 2026 through June 30, 2031, along with a six-month period of July 1, 2031 to December 31, 2031 to complete a Final Local Evaluation Report and any required program-specific compliance or financial audits. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it accepts $3,207,603 from the Board of State and Community Corrections and appropriates $855,238 to the Police Grants section of the State Grants Fund ($315,711 to the personnel category, $286,006 to the supplies and services category, $31,571 to the other category and $221,950 to the capital category) in fiscal year 2026-27, for the Proposition 64 Public Health and Safety Grant Program, to be offset by grant revenue. Presented by Approved as to form by Tiffany Allen Marco A. Verdugo City Manager City Attorney Page 473 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Form Rev 9/30/2025 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AGREEMENT NUMBER BSCC 1430-26 WITH THE BOARD OF STATE COMMUNITY CORRECTIONS FOR THE PROPOSITION 64 PUBLIC HEALTH AND SAFETY GRANT PROGRAM WHEREAS, the City of Chula Vista desires to participate in the Proposition 64 Public Health and Safety Grant Program funded through the California State and Local Government Law Enforcement Account and administered by the Board of State and Community Corrections (BSCC); and WHEREAS, on June 26, 2026, the City Manager’s Office received notice from the BSCC of a $3,207,603 award of Proposition 64 Public Health and Safety Cohort 4 grant to address local impacts due to the legalization of adult-use recreational cannabis in California, which the City applied for in March 2026; and WHEREAS, funds from the Proposition 64 Public Health and Safety Cohort 4 Grant builds upon the City's experience and accomplishments under Cohorts 2 and 3 projects and strengthens cannabis regulatory compliance, enhances enforcement efforts, reduces youth access to cannabis, and expands prevention, intervention, and education services; and WHEREAS, the Proposition 64 Public Health and Safety Cohort 4 Grant covers a five- year project activity period from July 1, 2026 through June 30, 2031, along with a six-month period of July 1, 2031 to December 31, 2031 to complete a Final Local Evaluation Report and any required program-specific compliance or financial audits; and WHEREAS, the City of Chula Vista agrees that grant funds received pursuant to Agreement Number BSCC 1430-26 shall not be used to supplant expenditures controlled by the City Council; and WHEREAS, the City of Chula Vista agrees to abide by the terms and conditions of the Grant Agreement Number BSCC 1430-26 as set forth by the BSCC. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it approves Agreement Number BSCC 1430-26 between the City of Chula Vista and Board of State and Community Corrections, including any amendments thereof, in the form presented, with such minor modifications as may be required or approved by the City Attorney, a copy of which shall be kept on file in the Office of the City Clerk, and authorizes and directs the City Manager to execute same. Page 474 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Resolution No. Page 2 Presented by Approved as to form by Tiffany Allen Marco A. Verdugo City Manager City Attorney Page 475 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Form Rev 9/30/2025 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AGREEMENTS WITH SBCS CORPORATION AND SAN DIEGO ASSOCIATION OF GOVERNMENTS FOR THE PROPOSITION 64 PUBLIC HEALTH & SAFETY GRANT PROGRAM WHEREAS, the City of Chula Vista desires to participate in the Proposition 64 Public Health and Safety Grant Program funded through the California State and Local Government Law Enforcement Account and administered by the Board of State and Community Corrections (“BSCC”); and WHEREAS, on June 26, 2026, the City Manager’s Office received notice from the BSCC of a $3,207,603 award of Proposition 64 Public Health and Safety Cohort 4 grant to address local impacts due to the legalization of adult-use recreational cannabis in California; and WHEREAS, funds from the Proposition 64 Public Health and Safety Cohort 4 Grant builds upon the City's experience and accomplishments under Cohorts 2 and 3 projects and strengthens cannabis regulatory compliance, enhances enforcement efforts, reduces youth access to cannabis, and expands prevention, intervention, and education services; and WHEREAS, SBCS Corporation will utilize evidence-based practices to provide education, prevention and intervention services, and San Diego Asso ciation of Governments (“SANDAG”) will provide monitoring and quality control services to assess the achievement of proposed goals of the program; and WHEREAS, the Proposition 64 Public Health and Safety Cohort 4 Grant covers a five- year project activity period from July 1, 2026 through June 30, 2031, along with a six-month period of July 1, 2031 to December 31, 2031 to complete a Final Local Evaluation Report and any required program-specific compliance or financial audits. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it approves Agreement to provide Diversion, Prevention and Intervention Services for the Proposition 64 Public Health and Safety Cohort 4 Grant Program between the City and SBCS Corporation, in the form presented, with such minor modifications as may be required or approved by the City Attorney, a copy of which shall be kept on file in the Office of the City Clerk, and authorizes and directs the City Manager to execute same. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it approves Agreement to provide Program Evaluation Services for the Proposition 64 Public Health and Safety Cohort 4 Grant Program between the City and San Diego Association of Governments, in the form presented, with such minor modifications as may be required or approved by the City Attorney, a copy of which shall be kept on file in the Office of the City Clerk, and authorizes and directs the City Manager to execute same. Page 476 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Resolution No. Page 2 Presented by Approved as to form by Tiffany Allen Marco A. Verdugo City Manager City Attorney Page 477 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda STATE OF CALIFORNIA DEPARTMENT OF GENERAL SERVICES SCO ID: 5227-BSCC143026 STANDARD AGREEMENT AGREEMENT NUMBER PURCHASING AUTHORIITY NUMBER (If Applicable) STD 213 (Rev 03/2019) BSCC 1430-26 BSCC-5227 1. This Agreement is entered into between the Contracting Agency and the Contractor named below: CONTRACTING AGENCY NAME BOARD OF STATE AND COMMUNITY CORRECTIONS CONTRACTOR NAME CITY OF CHULA VISTA, CITY MANAGER’S OFFICE 2. The term of this Agreement is: START DATE July 1, 2026 THROUGH END DATE December 31, 2031 3. The maximum amount of this Agreement is: $3,207,603.00 4. The parties agree to comply with the terms and conditions of the following exhibits, attachments, and appendices which are by this reference made a part of the Agreement. EXHIBITS TITLE PAGES Exhibit A Scope of Work 4 Exhibit B Budget Detail and Payment Provisions 4 Exhibit C General Terms and Conditions (02/2025) 4 Exhibit D Special Terms and Conditions 4 Attachment 1* Proposition 64 Public Health and Safety (Prop 64 PH&S) Grant Request for Proposals * Attachment 2 Proposition 64 PH&S Grant Program Cohort 4 Application for Funding 21 Appendix A Proposition 64 PH&S Grant Program Cohort 4 Scoring Panel Roster 1 Appendix B: Appendix B Criteria for Non-Governmental Organizations Receiving BSCC Program Funds 2 * This item is hereby incorporated by reference and can be viewed at: https://www.bscc.ca.gov/proposition-64-public-health-safety-grant-program/ IN WITNESS WHEREOF, THIS AGREEMENT HAS BEEN EXECUTED BY THE PARTIES HERETO. CONTRACTOR CONTRACTOR NAME (if other than an individual, state whether a corporation, partnership, etc.) CITY OF CHULA VISTA, CITY MANAGER’S OFFICE CONTRACTOR BUSINESS ADDRESS CITY STATE ZIP 276 4TH AVENUE CHULA VISTA CA 91910 PRINTED NAME OF PERSON SIGNING TITLE TIFFANY ALLEN CITY MANAGER CONTRACTOR AUTHORIZED SIGNATURE DATE SIGNED  STATE OF CALIFORNIA CONTRACTING AGENCY NAME BOARD OF STATE AND COMMUNITY CORRECTIONS CONTRACTING AGENCY ADDRESS CITY STATE ZIP 2590 Venture Oaks Way, Suite 200 Sacramento CA 95833 PRINTED NAME OF PERSON SIGNING TITLE COLLEEN CURTIN Deputy Director CONTRACTING AGENCY AUTHORIZED SIGNATURE DATE SIGNED  CALIFORNIA DEPARTMENT OF GENERAL SERVICES APPROVAL: EXEMPT PER SCM, VOLUME 1, CH. 4.06 Page 478 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda CITY OF CHULA VISTA, CITY MANAGER’S OFFICE BSCC 1430-26 PAGE 1 OF 4 EXHIBIT A: SCOPE OF WORK Rev 04/2020 1. GRANT AGREEMENT – Proposition 64 Public Health and Safety Grant Program This Grant Agreement is between the State of California, Board of State and Community Corrections (hereafter referred to as BSCC) and the City of Chula Vista, City Manager’s Office (hereafter referred to as the Grantee or Contractor). 2. PROJECT SUMMARY AND ADMINISTRATION A. The City of Chula Vista proposes a coordinated initiative between the Chula Vista City Manager’s Office, Chula Vista Police Department, SBCS, and SANDAG to strengthen cannabis regulation, enhance enforcement, and expand youth focused prevention. Rising youth marijuana use, declining perceptions of harm, and persistent illegal activity highlight the need for expanded education, intervention, and compliance efforts. The Chula Vista City Manager’s office will oversee fiscal management and overall project coordination. CVPD will conduct inspections, training, product testing, minor decoy operations, and quarterly enforcement against illegal operators, while also improving officer readiness and investigating juvenile cases. SBCS will deliver assessment driven diversion, prevention, and intervention services for referred youth. SANDAG will serve as the independent evaluator to support a data driven, community centered approach that reduces youth cannabis risks and enhances public safety. B. Grantee agrees to administer the project in accordance with Attachment 1: Proposition 64 PH&S Grant Request for Proposals (incorporated by reference) and Attachment 2: Proposition 64 PH&S Grant Program Cohort 4 Application for Funding, which are attached and hereto and made part of this agreement. 3. PROJECT OFFICIALS A. The BSCC's Executive Director or designee shall be the BSCC's representative for administration of the Grant Agreement and shall have authority to make determinations relating to any controversies that may arise under or regarding the interpretation, performance, or payment for work performed under this Grant Agreement. B. The Grantee’s Designated Financial Officer and Project Director must be employees of the Contractor. The Grantee’s project officials shall be those identified as follows: Authorized Officer with legal authority to sign: Name: TIFFANY ALLEN Title: CITY MANAGER Address: 276 4TH AVENUE, CHULA VISTA, CA 91910 Phone: 619-691-5059 Email: tallen@chulavistaca.gov Designated Financial Officer authorized to receive warrants: Name: ADRIAN DEL RIO Title: DIRECTOR OF FINANCE Address: 276 4TH AVENUE, CHULA VISTA, CA 91910 Phone: 619-409-3820 Email: adelrio@chulavistaca.gov Page 479 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda CITY OF CHULA VISTA, CITY MANAGER’S OFFICE BSCC 1430-26 PAGE 2 OF 4 EXHIBIT A: SCOPE OF WORK Rev 04/2020 Project Director authorized to administer the project: Name: COURTNEY CHASE Title: DEPUTY CITY MANAGER Address: 276 4TH AVENUE, CHULA VISTA, CA 91910 Phone: 619-585-5656 Email: cchase@chulavistaca.gov C. Either party may change its project representatives upon written notice to the other party. D. By signing this Grant Agreement, the Authorized Officer listed above warrants that he or she has full legal authority to bind the entity for which he or she signs. 4. DATA COLLECTION Grantees will be required to comply with all data collection and reporting requirements as described in Attachment 1: Proposition 64 PH&S Grant Request for Proposals and Attachment 2: Proposition 64 PH&S Grant Program Cohort 4 Application for Funding. 5. REPORTING REQUIREMENTS A. Grantee will submit quarterly progress reports in a format prescribed by the BSCC. These reports, which will describe progress made on program objectives and include required data, shall be submitted according to the following schedule: Quarterly Progress Report Periods Due no later than: 1. July 1, 2026 to September 30, 2026 November 15, 2026 2. October 1, 2026 to December 31, 2026 February 15, 2027 3. January 1, 2027 to March 31, 2027 May 15, 2027 4. April 1, 2027 to June 30, 2027 August 15, 2027 5. July 1, 2027 to September 30, 2027 November 15, 2027 6. October 1, 2027 to December 31, 2027 February 15, 2028 7. January 1, 2028 to March 31, 2028 May 15, 2028 8. April 1, 2028 to June 30, 2028 August 15, 2028 9. July 1, 2028 to September 30, 2028 November 15, 2028 10. October 1, 2028 to December 31, 2028 February 15, 2029 11. January 1, 2029 to March 31, 2029 May 15, 2029 12. April 1, 2029 to June 30, 2029 August 15, 2029 13. July 1, 2029 to September 30, 2029 November 15, 2029 14. October 1, 2029 to December 31, 2029 February 15, 2030 15. January 1, 2030 to March 31, 2030 May 15, 2030 16. April 1, 2030 to June 30, 2030 August 15, 2030 17. July 1, 2030 to September 30, 2030 November 15, 2030 18. October 1, 2030 to December 31, 2030 February 15, 2031 19. January 1, 2031 to March 31, 2031 May 15, 2031 20. April 1, 2031 to June 30, 2031 August 15, 2031 Note: Project activity period ends June 30, 2031. The period of July 1, 2031 to December 31, 2031 is for completion of Final Local Evaluation Report and program-specific compliance audit only. Page 480 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda CITY OF CHULA VISTA, CITY MANAGER’S OFFICE BSCC 1430-26 PAGE 3 OF 4 EXHIBIT A: SCOPE OF WORK Rev 04/2020 B. Evaluation Documents Due no later than: 1. Local Evaluation Plan November 20, 2026 2. Final Local Evaluation Report December 31, 2031 C. Other Due no later than: Program-Specific Compliance Audit December 31, 2031 6. PROJECT RECORDS A. The Grantee shall establish an official file for the project. The file shall contain adequate documentation of all actions taken with respect to the project, including copies of this Grant Agreement, approved program/budget modifications, financial records and required reports. B. The Grantee shall establish separate accounting records and maintain documents and other evidence sufficient to properly reflect the amount, receipt, and disposition of all project funds, including grant funds and any matching funds by the Grantee and the total cost of the project. Source documentation includes copies of all awards, applications, approved modifications, financial records and narrative reports. C. Personnel and payroll records shall include the time and attendance reports for all individuals reimbursed under the grant, whether they are employed full-time or part-time. Time and effort reports are also required for all subcontractors and consultants. D. The grantee shall maintain documentation of donated goods and/or services, including the basis for valuation. E. Grantee agrees to protect records adequately from fire or other damage. When records are stored away from the Grantee’s principal office, a written index of the location of records stored must be on hand and ready access must be assured. F. All Grantee records relevant to the project must be preserved a minimum of three (3) years after closeout of the grant project and shall be subject at all reasonable times to inspection, examination, monitoring, copying, excerpting, transcribing, and audit ing by the BSCC or designees. If any litigation, claim, negotiation, audit, or other action involving the records has been started before the expiration of the three-year period, the records must be retained until the completion of the action and resolution of all issues which arise from it or until the end of the regular three-year period, whichever is later. 7. CONFLICT OF INTEREST A. Existing law prohibits any grantee, subgrantee, partner or like party who participated on the Proposition 64 PH&S Scoring Panel (See Appendix A) from receiving funds from the Proposition 64 PH&S grants awarded under this RFP. Applicants who are awarded grants under this RFP are responsible for reviewing the Proposition 64 PH&S Scoring Panel membership roster (see Appendix A) and ensuring that no grant dollars are passed through to any entity represented by the members of the Proposition 64 PH&S Scoring Panel. B. In cases of an actual conflict of interest with a Scoring Panel member, the Board may revoke the grant award and legal consequences could exist for the parties involved, including, but not limited to, repayment of the grant award. Page 481 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda CITY OF CHULA VISTA, CITY MANAGER’S OFFICE BSCC 1430-26 PAGE 4 OF 4 EXHIBIT A: SCOPE OF WORK Rev 04/2020 8. STATE AUDIT REQUIREMENTS Grantees are required to provide the BSCC with a program-specific compliance audit the covers the entire service delivery period of the grant (July 1, 2026 to December 31, 2031). The audit report will be due no later than the end of the contract term, December 31, 2031. The program-specific compliance audit shall be performed by a Certified Public Accountant or a participating county or city auditor that is organizationally independent from the participating county’s or city’s project financial management functions. Expenses for this final audit may be reimbursed for actual costs up to $25,000. In addition, the BSCC reserves the right to call for a program, compliance or financial audit at any time between the execution of the grant agreement and three (3) years following the end of the grant period. The Department of General Services, State Controller, the California State Auditor, the Department of Finance, or their designated representative shall have the right to review and to copy any records and supporting documentation pertaining to the performance of this grant. Page 482 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda CITY OF CHULA VISTA, CITY MANAGER’S OFFICE BSCC 1430-26 PAGE 1 OF 4 EXHIBIT B: BUDGET DETAIL AND PAYMENT PROVISIONS Rev 04/2020 1. INVOICING AND PAYMENTS A. The Grantee shall be paid in quarterly in arrears by submitting an invoice (Form 201) to the BSCC that outlines actual expenditures claimed for the invoicing period. Quarterly Invoicing Periods: Due no later than: 1. July 1, 2026 to September 30, 2026 November 15, 2026 2. October 1, 2026 to December 31, 2026 February 15, 2027 3. January 1, 2027 to March 31, 2027 May 15, 2027 4. April 1, 2027 to June 30, 2027 August 15, 2027 5. July 1, 2027 to September 30, 2027 November 15, 2027 6. October 1, 2027 to December 31, 2027 February 15, 2028 7. January 1, 2028 to March 31, 2028 May 15, 2028 8. April 1, 2028 to June 30, 2028 August 15, 2028 9. July 1, 2028 to September 30, 2028 November 15, 2028 10. October 1, 2028 to December 31, 2028 February 15, 2029 11. January 1, 2029 to March 31, 2029 May 15, 2029 12. April 1, 2029 to June 30, 2029 August 15, 2029 13. July 1, 2029 to September 30, 2029 November 15, 2029 14. October 1, 2029 to December 31, 2029 February 15, 2030 15. January 1, 2030 to March 31, 2030 May 15, 2030 16. April 1, 2030 to June 30, 2030 August 15, 2030 17. July 1, 2030 to September 30, 2030 November 15, 2030 18. October 1, 2030 to December 31, 2030 February 15, 2031 19. January 1, 2031 to March 31, 2031 May 15, 2031 20. April 1, 2031 to June 30, 2031 August 15, 2031 Final Invoicing Periods: Due no later than: 21. July 1, 2031 to September 30, 2031 November 15, 2031 22. October 1, 2031 to December 31, 2031 February 29, 2032 *Note: Only expenditures associated with completion of the Final Local Evaluation Report and the financial audit may be included on these last two invoices. B. All project expenditures (excluding costs associated with the completion of the Final Local Evaluation Report and the program-specific compliance audit) must be expended by the end of the grant project period, June 30, 2031, and included on the invoice due August 15, 2031. Project expenditures spent after June 30, 2031 will not be reimbursed. C. The Final Local Evaluation Report is due to BSCC by December 31, 2031. Expenditures spent for the completion of the Final Local Evaluation Report during the period of July 1, 2031 to December 31, 2031 must be submitted during the Final Invoicing Periods, with the final invoice due on February 29, 2032. Supporting fiscal documentation will be required for all expenditures claimed on during the Final Invoicing Periods and must be submitted with the final invoice. D. The program-specific compliance audit is due to BSCC by December 31, 2031. Expenditures spent for the completion of the financial audit during the period of July 1, 2031 to December 31, 2031 must be submitted during the Final Invoicing Periods, with the final invoice due on February 29, 2032. Supporting fiscal documentation will be required for all expenditures claimed during the Final Invoicing Periods and must be submitted with the final invoice. D. Grantee shall submit an invoice to the BSCC each invoicing period, even if grant funds are not expended or requested during the invoicing period. Page 483 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda CITY OF CHULA VISTA, CITY MANAGER’S OFFICE BSCC 1430-26 PAGE 2 OF 4 EXHIBIT B: BUDGET DETAIL AND PAYMENT PROVISIONS Rev 04/2020 E. Upon the BSCC’s request, supporting documentation must be submitted for project expenditures. Grantees are required to maintain supporting documentation for all expenditures for the life of the grant and make it readily available for review during BSCC site visits. See Exhibit A. Scope of Work, Item 6. Project Records. Grantee also agrees to maintain such records for possible audit for a minimum of three (3) years after final payment. F. The BSCC maintains the right to disallow all or any portion of an invoice at any time based upon information or documentation uncovered through a site visit, desk review, audit, etc. The BSCC may disallow all or any portion of an invoice even after an invoice is approved or paid. 2. GRANT AMOUNT AND LIMITATION A. In no event shall the BSCC be obligated to pay any amount in excess of the grant award. Grantee waives any and all claims against the BSCC, and the State of California on account of project costs that may exceed the sum of the grant award. B. Under no circumstance will a budget item change be authorized that would cause the project to exceed the amount of the grant award identified in this Grant Agreement. 3. BUDGET CONTINGENCY CLAUSE A. This grant agreement is valid and enforceable only if sufficient funds are made available through the Proposition 64 Initiative (the Control, Regulate and Tax Adult Use of Marijuana Act) via the State and Local Government Law Enforcement Account. On or be fore July 15th of each fiscal year, the State Controller shall deposit funds derived from Proposition 64 taxes into the State and Local Government Law Enforcement Account pursuant to Revenue and Taxation Code section 34019, subdivision (f)(3). The grantee agrees that the BSCC’s obligation to pay any sum to the grantee under any provision of this agreement is contingent upon the availability of sufficient funding made available to the BSCC pursuant to Revenue and Taxation Code section 34019, subdivision (f)(3)(C). B. If Proposition 64 PH&S funding is reduced or falls below estimates contained within the Proposition 64 PH&S Cohort 4 Request for Proposals, the BSCC shall have the option to either cancel this Grant Agreement with no liability occurring to the BSCC or offer an amendment to this agreement to the Grantee to reflect a reduced amount. C. If BSCC cancels the agreement pursuant to Paragraph 3(B) or Grantee does not agree to an amendment in accordance with the option provided by Paragraph 3(B), it is mutually agreed that the Grant Agreement shall have no further force and effect. In this event, the BSCC shall have no liability to pay any funds whatsoever to Grantee or to furnish any other considerations under this Agreement and Grantee shall not be obligated to perform any provisions of this Grant Agreement except that Grantee shall be required to maintain all project records required by Paragraph 6 of Exhibit A for a period of three (3) years following the termination of this agreement. 4. PROJECT COSTS A. Grantee is responsible for ensuring that actual expenditures are for eligible project costs. “Eligible” and “ineligible” project costs are set forth in the March 2026 BSCC Grant Administration Guide, which can be found under Quick Links here: https://www.bscc.ca.gov/s_correctionsplanningandprograms/ B. The provisions of the BSCC Grant Administration Guide are incorporated by reference into this agreement and Grantee shall be responsible for adhering to the requirements set forth therein. To the extent any of the provisions of the BSCC Grant Administrati on Guide and this agreement conflict, the language in this agreement shall prevail. Page 484 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda CITY OF CHULA VISTA, CITY MANAGER’S OFFICE BSCC 1430-26 PAGE 3 OF 4 EXHIBIT B: BUDGET DETAIL AND PAYMENT PROVISIONS Rev 04/2020 C. Grantee is responsible for ensuring that invoices submitted to the BSCC claim actual expenditures for eligible project costs. D. Grantee shall, upon demand, remit to the BSCC any grant funds not expended for eligible project costs or an amount equal to any grant funds expended by the Grantee in violation of the terms, provisions, conditions or commitments of this Grant Agreement. E. Grant funds must be used to support new program activities or to augment existing funds that expand current program activities. Grant funds shall not replace (supplant) any federal, state and/or local funds that have been appropriated for the same purpose. Violations can result in recoupment of monies provided under this grantor suspension of future program funding through BSCC grants. 5. PROMPT PAYMENT CLAUSE Payment will be made in accordance with, and within the time specified in, Government Code Chapter 4.5, commencing with Section 927. 6. WITHHOLDING OF GRANT DISBURSEMENTS A. The BSCC may withhold all or any portion of the grant funds provided by this Grant Agreement in the event the Grantee has materially and substantially breached the terms and conditions of this Grant Agreement. B. The BSCC may withhold the final payment amount as security, to be released to the Grantee upon compliance with all grant provisions, including: 1) submittal and approval of the final invoice; 2) submittal and approval of the final quarterly progress report; and 3) submittal and approval of any additional required reports, including but not limited to the Final Local Evaluation Report and the program-specific compliance audit. C. The BSCC will not reimburse Grantee for costs identified as ineligible for grant funding. If grant funds have been provided for costs subsequently deemed ineligible, the BSCC may either withhold an equal amount from future payments to the Grantee or require repayment of an equal amount to the State by the Grantee. D. In the event that grant funds are withheld from the Grantee, the BSCC’s Executive Director or designee shall notify the Grantee of the reasons for withholding and advise the Grantee of the time within which the Grantee may remedy the failure or violation leading to the withholding. 7. EXECUTIVE ORDER N-6-22 – RUSSIA SANCTIONS On March 4, 2022, Governor Gavin Newsom issued Executive Order N-6-22 (the EO) regarding Economic Sanctions against Russia and Russian entities and individuals. “Economic Sanctions” refers to sanctions imposed by the U.S. government in response to Russia’s actions in Ukraine, as well as any sanctions imposed under state law. The EO directs state agencies to terminate contracts with, and to refrain from entering any new contracts with, individuals or entities that are determined to be a target of Economic Sanctions. Accordingly, should the State determine Contractor is a target of Economic Sanctions or is conducting prohibited transactions with sanctioned individuals or entities, that shall be grounds for termination of this agreement. The State shall provide Contractor advance written notice of such termination, allowing Contractor at least 30 calendar days to provide a written response. Termination shall be at the sole discretion of the State. Page 485 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda CITY OF CHULA VISTA, CITY MANAGER’S OFFICE BSCC 1430-26 PAGE 4 OF 4 EXHIBIT B: BUDGET DETAIL AND PAYMENT PROVISIONS Rev 04/2020 8. PROJECT BUDGET .BUDGET CATEGORIES A. GRANT FUNDS FOR PPA 1 (PUBLIC SAFETY/ ENFORCEMENT) B. GRANT FUNDS FOR PPAs 2-4 TOTAL REQUESTED GRANT FUNDS (A+B) 1. Salaries and Benefits $1,670,043 $0 $1,670,043 2. Services and Supplies $74,000 $0 $74,000 3. Professional Services or Public Agency Contracts $277,000 $63,000 $340,000 4. Non-Governmental Organization (NGO) $0 $710,000 $710,000 5. Equipment/Fixed Assets $221,950 $0 $221,950 6. Other (Travel, Training, etc.) $24,606 $0 $24,606 7. Indirect Costs $167,004 $167,004 TOTAL $2,267,598 $773,000 $3,207,603 Page 486 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda CITY OF CHULA VISTA, CITY MANAGER’S OFFICE BSCC 1430-26 PAGE 1 OF 4 EXHIBIT C: GENERAL TERMS AND CONDITIONS (02/2025) Rev 04/2020 1. APPROVAL: This Agreement is of no force or effect until signed by both parties and approved by the Department of General Services, if required. Contractor may not commence performance until such approval has been obtained. 2. AMENDMENT: No amendment or variation of the terms of this Agreement shall be valid unless made in writing, signed by the parties and approved as required. No oral understanding or Agreement not incorporated in the Agreement is binding on any of the parties. 3. ASSIGNMENT: This Agreement is not assignable by the Contractor, either in whole or in part, without the consent of the State in the form of a formal written amendment. 4. AUDIT: Contractor agrees that the awarding department, the Department of General Services, the Bureau of State Audits, or their designated representative shall have the right to review and to copy any records and supporting documentation pertaining to the performance of this Agreement. Contractor agrees to maintain such records for possible audit for a minimum of three (3) years after final payment, unless a longer period of records retention is stipulated. Contractor agrees to allow the auditor(s) access to such records during normal business hours and to allow interviews of any employees who might reasonably have information rel ated to such records. Further, Contractor agrees to include a similar right of the State to audit records and interview staff in any subcontract related to performance of this Agreement. (Gov. Code §8546.7, Pub. Contract Code §10115 et seq., CCR Title 2, Section 1896). 5. INDEMNIFICATION: Contractor agrees to indemnify, defend and save harmless the State, its officers, agents and employees from any and all claims and losses accruing or resulting to any and all contractors, subcontractors, suppliers, laborers, and any other person, firm or corporation furnishing or supplying work services, materials, or supplies in connection with the performance of this Agreement, and from any and all claims and losses accruing or resulting to any person, firm or corporation who may be injured or damaged by Contractor in the performance of this Agreement. 6. DISPUTES: Contractor shall continue with the responsibilities under this Agreement during any dispute. 7. TERMINATION FOR CAUSE: The State may terminate this Agreement and be relieved of any payments should the Contractor fail to perform the requirements of this Agreement at the time and in the manner herein provided. In the event of such termination the State may proceed with the work in any manner deemed proper by the State. All costs to the State shall be deducted from any sum due the Contractor under this Agreement and the balance, if any, shall be paid to the Contractor upon demand. 8. INDEPENDENT CONTRACTOR: Contractor, and the agents and employees of Contractor, in the performance of this Agreement, shall act in an independent capacity and not as officers or employees or agents of the State. 9. RECYCLING CERTIFICATION: The Contractor shall certify in writing under penalty of perjury, the minimum, if not exact, percentage of post-consumer material as defined in the Public Contract Code Section 12200, in products, materials, goods, or supplies offered or sold to the State rega rdless of whether the product meets the requirements of Public Contract Code Section 12209. With respect to printer or duplication cartridges that comply with the requirements of Section 12156(e), the certification required by this subdivision shall speci fy that the cartridges so comply (Pub. Contract Code §12205). 10. NON-DISCRIMINATION CLAUSE: During the performance of this Agreement, Contractor and its subcontractors shall not deny the contract’s benefits to any person on the basis of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic Page 487 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda CITY OF CHULA VISTA, CITY MANAGER’S OFFICE BSCC 1430-26 PAGE 2 OF 4 EXHIBIT C: GENERAL TERMS AND CONDITIONS (02/2025) Rev 04/2020 information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status, nor shall they discriminate unlawfully against any employee or applicant for employment because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status. Contractor shall i nsure that the evaluation and treatment of employees and applicants for employment are free of such discrimination. Contractor and subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code §12900 et seq.), the regulations promulgated thereunder (Cal. Code Regs., tit. 2, §11000 et seq.), the provisions of Article 9.5, Chapter 1, Part 1, Division 3, Title 2 of the Government Code (Gov. Code §§11135-11139.5), and the regulations or standards adopted by the awarding state agency to implement such article. Contractor shall permit access by representatives of the Department of Fair Employment and Housing and the awarding state agency upon reasonable notice at any time during the normal business hours, but in no case less than 24 hours’ notice, to such of its books, records, accounts, and all other sources of information and its facilities as said Department or Agency shall require to ascertain compliance with this clause. Contractor and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement. (See Cal. Code Regs., tit. 2, §11105.) Contractor shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under the Agreement. 11. CERTIFICATION CLAUSES: The CONTRACTOR CERTIFICATION CLAUSES contained in the document CCC 04/2017 are hereby incorporated by reference and made a part of this Agreement by this reference as if attached hereto. 12. TIMELINESS: Time is of the essence in this Agreement. 13. COMPENSATION: The consideration to be paid Contractor, as provided herein, shall be in compensation for all of Contractor's expenses incurred in the performance hereof, including travel, per diem, and taxes, unless otherwise expressly so provided. 14. GOVERNING LAW: This contract is governed by and shall be interpreted in accordance with the laws of the State of California. 15. ANTITRUST CLAIMS: The Contractor by signing this agreement hereby certifies that if these services or goods are obtained by means of a competitive bid, the Contractor shall comply with the requirements of the Government Codes Sections set out below. A. The Government Code Chapter on Antitrust claims contains the following definitions: 1) "Public purchase" means a purchase by means of competitive bids of goods, services, or materials by the State or any of its political subdivisions or public agencies on whose behalf the Attorney General may bring an action pursuant to subdivision (c) of Section 16750 of the Business and Professions Code. 2) "Public purchasing body" means the State or the subdivision or agency making a public purchase. Government Code Section 4550. B. In submitting a bid to a public purchasing body, the bidder offers and agrees that if the bid is accepted, it will assign to the purchasing body all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec. 15) or under the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, materials, or services by the bidder for sale to the purchasing body pursuant to the bid. Such assignment shall be made and become effective Page 488 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda CITY OF CHULA VISTA, CITY MANAGER’S OFFICE BSCC 1430-26 PAGE 3 OF 4 EXHIBIT C: GENERAL TERMS AND CONDITIONS (02/2025) Rev 04/2020 at the time the purchasing body tenders final payment to the bidder. Government Code Section 4552. C. If an awarding body or public purchasing body receives, either through judgment or settlement, a monetary recovery for a cause of action assigned under this chapter, the assignor shall be entitled to receive reimbursement for actual legal costs incurred and may, upon demand, recover from the public body any portion of the recovery, including treble damages, attributable to overcharges that were paid by the assignor but were not paid by the public body as part of the bid price, less the expenses incurred in obtaining that portion of the recovery. Government Code Section 4553. D. Upon demand in writing by the assignor, the assignee shall, within one year from such demand, reassign the cause of action assigned under this part if the assignor has been or may have been injured by the violation of law for which the cause of action aros e and (a) the assignee has not been injured thereby, or (b) the assignee declines to file a court action for the cause of action. See Government Code Section 4554. 16. CHILD SUPPORT COMPLIANCE ACT: For any Agreement in excess of $100,000, the contractor acknowledges in accordance with Public Contract Code 7110, that: A. The Contractor recognizes the importance of child and family support obligations and shall fully comply with all applicable state and federal laws relating to child and family support enforcement, including, but not limited to, disclosure of information and compliance with earnings assignment orders, as provided in Chapter 8 (commencing with section 5200) of Part 5 of Division 9 of the Family Code; and B. The Contractor, to the best of its knowledge is fully complying with the earnings assignment orders of all employees and is providing the names of all new employees to the New Hire Registry maintained by the California Employment Development Department. 17. UNENFORCEABLE PROVISION: In the event that any provision of this Agreement is unenforceable or held to be unenforceable, then the parties agree that all other provisions of this Agreement have force and effect and shall not be affected thereby. 18. PRIORITY HIRING CONSIDERATIONS: If this Contract includes services in excess of $200,000, the Contractor shall give priority consideration in filling vacancies in positions funded by the Contract to qualified recipients of aid under Welfare and Institutions Code Section 11200 in accord ance with Pub. Contract Code §10353. 19. SMALL BUSINESS PARTICIPATION AND DVBE PARTICIPATION REPORTING REQUIREMENTS: A. If for this Contract Contractor made a commitment to achieve small business participation, then Contractor must within 60 days of receiving final payment under this Contract (or within such other time period as may be specified elsewhere in this Contract) report to the awarding department the actual percentage of small business participation that was achieved. (Govt. Code § 14841.) B. If for this Contract Contractor made a commitment to achieve disabled veteran business enterprise (DVBE) participation, then Contractor must within 60 days of receiving final payment under this Contract (or within such other time period as may be specified elsewhere in this Contract) certify in a report to the awarding department: (1) the total amount the prime Contractor received under the Contract; (2) the name and address of the DVBE(s) that participated in the performance of the Contract; (3) the amount each DVBE received from the prime Contractor; (4) that all payments under the Contract have been made to the DVBE; and (5) the actual percentage of DVBE participation that was achieved. A person or entity that knowingly provides false Page 489 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda CITY OF CHULA VISTA, CITY MANAGER’S OFFICE BSCC 1430-26 PAGE 4 OF 4 EXHIBIT C: GENERAL TERMS AND CONDITIONS (02/2025) Rev 04/2020 information shall be subject to a civil penalty for each violation. (Mil. & Vets. Code § 999.5(d); Govt. Code § 14841.) 20. LOSS LEADER: If this contract involves the furnishing of equipment, materials, or supplies then the following statement is incorporated: It is unlawful for any person engaged in business within this state to sell or use any article or product as a “loss leader” as defined in Section 17030 of the Business and Professions Code. (PCC 10344(e).) 21. GENERATIVE AI DISCLOSURE OBLIGATIONS: A. The following terms are in addition to the defined terms and shall apply to the Contract: 1) “Generative AI (GenAI)” means an artificial intelligence system that can generate derived synthetic content, including text, images, video, and audio that emulates the structure and characteristics of the system's training data. (Gov. Code § 11549.64.) B. Contractor shall immediately notify the State in writing if it: (1) intends to provide GenAI as a deliverable to the State; or (2), intends to utilize GenAI, including GenAI from third parties, to complete all or a portion of any deliverable that materially impacts: (i) functionality of a State system, (ii) risk to the State, or (iii) Contract performance. For avoidance of doubt, the term “materially impacts” shall have the meaning set forth in State Administrative Manual (SAM) § 4986.2 Definitions for GenAI. C. Notification shall be provided to the State designee identified in this Contract. D. At the direction of the State, Contractor shall discontinue the provision to the State of any previously unreported GenAI that results in a material impact to the functionality of the System, risk to the State, or Contract performance, as determined by the State. E. If the use of previously undisclosed GenAI is approved by the State, then Contractor will update the Deliverable description, and the Parties will amend the Contract accordingly, which may include incorporating the GenAI Special Provisions into the Contract, at no additional cost to the State. F. The State, at its sole discretion, may consider Contractor’s failure to disclose or discontinue the provision or use of GenAI as described above, to constitute a material breach of Contract when such failure results in a material impact to the functionalit y of the System, risk to the State, or Contract performance. The State is entitled to seek any and all remedies available to it under law as a result of such breach, including but not limited to termination of the contract. Page 490 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda CITY OF CHULA VISTA, CITY MANAGER’S OFFICE BSCC 1430-26 PAGE 1 OF 4 EXHIBIT D: SPECIAL TERMS AND CONDITIONS Rev 04/2020 1. GRANTEE’S GENERAL RESPONSIBILITY A. Grantee agrees to comply with all terms and conditions of this Grant Agreement. Review and approval by the BSCC are solely for the purpose of proper administration of grant funds and shall not be deemed to relieve or restrict the Grantee’s responsibility. B. Grantee is responsible for the performance of all project activities identified in Attachment 1: Proposition 64 PH&S Grant Request for Proposals and Attachment 2: Proposition 64 PH&S Grant Program Cohort 4 Application for Funding. C. Grantee shall immediately advise the BSCC of any significant problems or changes that arise during the course of the project. 2. GRANTEE ASSURANCES AND COMMITMENTS A. Compliance with Laws and Regulations This Grant Agreement is governed by and shall be interpreted in accordance with the laws of the State of California. Grantee shall at all times comply with all applicable State laws, rules and regulations, and all applicable local ordinances. B. Fulfillment of Assurances and Declarations Grantee shall fulfill all assurances, declarations, representations, and statements made by the Grantee in Attachment 1: Proposition 64 PH&S Grant Request for Proposals and Attachment 2: Proposition 64 PH&S Grant Program Cohort 4 Application for Funding, documents, amendments, approved modifications, and communications filed in support of its request for grant funds. C. Permits and Licenses Grantee agrees to procure all permits and licenses necessary to complete the project, pay all charges and fees, and give all notices necessary or incidental to the due and lawful proceeding of the project work. 3. POTENTIAL SUBCONTRACTORS A. In accordance with the provisions of this Grant Agreement, the Grantee may subcontract for services needed to implement and/or support program activities. Grantee agrees that in the event of any inconsistency between this Grant Agreement and Grantee’s agreement with a subcontractor, the language of this Grant Agreement will prevail. B. Nothing contained in this Grant Agreement or otherwise, shall create any contractual relation between the BSCC and any subcontractors, and no subcontract shall relieve the Grantee of his responsibilities and obligations hereunder. The Grantee agrees to be as fully responsible to the BSCC for the acts and omissions of its subcontractors and of persons either directly or indirectly employed by any of them as it is for the acts and omissions of persons directly employed by the Grantee. The Grantee's obligation to pay its subcontractors is an independent obligation from the BSCC's obligation to make payments to the Grantee. As a result, the BSCC shall have no obligation to pay or to enforce the payment of any moneys to any subcontractor. C. Grantee shall ensure that all subcontractors comply with the eligibility requirements stated in the [Grant Program Name] RFP and described in Appendix B. D. Grantee assures that for any subcontract awarded by the Grantee, such insurance and fidelity bonds, as is customary and appropriate, will be obtained. E. Grantee agrees to place appropriate language in all subcontracts for work on the project requiring the Grantee’s subcontractors to: 1) Books and Records Page 491 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda CITY OF CHULA VISTA, CITY MANAGER’S OFFICE BSCC 1430-26 PAGE 2 OF 4 EXHIBIT D: SPECIAL TERMS AND CONDITIONS Rev 04/2020 Maintain adequate fiscal and project books, records, documents, and other evidence pertinent to the subcontractor’s work on the project in accordance with generally accepted accounting principles. Adequate supporting documentation shall be maintained in such detail so as to permit tracing transactions from the invoices, to the accounting records, to the supporting documentation. These records shall be maintained for a minimum of three (3) years after the acceptance of the final grant project audit under the Grant Agreement and shall be subject to examination and/or audit by the BSCC or designees, state government auditors or designees, or by federal government auditors or designees. 2) Access to Books and Records Make such books, records, supporting documentations, and other evidence available to the BSCC or designee, the State Controller’s Office, the Department of General Services, the Department of Finance, California State Auditor, and their designated represen tatives during the course of the project and for a minimum of three (3) years after acceptance of the final grant project audit. The Subcontractor shall provide suitable facilities for access, monitoring, inspection, and copying of books and records related to the grant-funded project. 4. PROJECT ACCESS Grantee shall ensure that the BSCC, or any authorized representative, will have suitable access to project activities, sites, staff and documents at all reasonable times during the grant period including those maintained by subcontractors. Access to program records will be made available by both the grantee and the subcontractors for a period of three (3) years following the end of the grant period. 5. ACCOUNTING AND AUDIT REQUIREMENTS A. Grantee agrees that accounting procedures for grant funds received pursuant to this Grant Agreement shall be in accordance with generally accepted government accounting principles and practices, and adequate supporting documentation shall be maintained in such detail as to provide an audit trail. Supporting documentation shall permit the tracing of transactions from such documents to relevant accounting records, financial reports and invoices. B. The BSCC reserves the right to call for a program or financial audit at any time between the execution of this Grant Agreement and three years following the end of the grant period. At any time, the BSCC may disallow all or part of the cost of the activity or action determined to not be in compliance with the terms and conditions of this Grant Agreement or take other remedies legally available. 6. DEBARMENT, FRAUD, THEFT OR EMBEZZLEMENT It is the policy of the BSCC to protect grant funds from unreasonable risks of fraudulent, criminal, or other improper use. As such, the Board will not enter into contracts or provide reimbursement to grantees that have been: 1. debarred by any federal, state, or local government entities during the period of debarment; or 2. convicted of fraud, theft, or embezzlement of federal, state, or local government grant funds for a period of three years following conviction. Furthermore, the BSCC requires grant recipients to provide an assurance that there has been no applicable debarment, disqualification, suspension, or removal from a federal, state or local grant program on the part of the grantee at the time of application and that the grantee will immediately notify the BSCC should such debarment or conviction occur during the term of the Grant contract. Page 492 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda CITY OF CHULA VISTA, CITY MANAGER’S OFFICE BSCC 1430-26 PAGE 3 OF 4 EXHIBIT D: SPECIAL TERMS AND CONDITIONS Rev 04/2020 BSCC also requires that all grant recipients include, as a condition of award to a subgrantee or subcontractor, a requirement that the subgrantee or subcontractor will provide the same assurances to the grant recipient. If a grant recipient wishes to consider a subgrantee or subcontractor that has been debarred or convicted, the grant recipient must submit a written request for exception to the BSCC along with supporting documentation. All Grantees must have on file with the BSCC a completed and signed Certification of Compliance with BSCC Policies on Debarment, Fraud, Theft and Embezzlement (Required as Attachment E of the original Proposal Package). 7. MODIFICATIONS No change or modification in the project will be permitted without prior written approval from the BSCC. Changes may include modification to project scope, changes to performance measures, compliance with collection of data elements, and other significant changes in the budget or program components contained in Attachment 1: Proposition 64 PH&S Grant Request for Proposals and Attachment 2: Proposition 64 PH&S Grant Program Cohort 4 Application for Funding. 8. TERMINATION A. This Grant Agreement may be terminated by the BSCC at any time after grant award and prior to completion of project upon action or inaction by the Grantee that constitutes a material and substantial breech of this Grant Agreement. Such action or inaction includes but is not limited to: 1) substantial alteration of the scope of the grant project without prior written approval of the BSCC; 2) refusal or inability to complete the grant project in a manner consistent with Attachment 1: Proposition 64 PH&S Grant Request for Proposals and Attachment 2: Proposition 64 PH&S Grant Program Cohort 4 Application for Funding, or approved modifications; 3) failure to provide the required local match share of the total project costs; and 4) failure to meet prescribed assurances, commitments, recording, accounting, auditing, and reporting requirements of the Grant Agreement. B. Prior to terminating the Grant Agreement under this provision, the BSCC shall provide the Grantee at least 30 calendar days written notice stating the reasons for termination and effective date thereof. The Grantee may appeal the termination decision in accordance with the instructions listed in Exhibit D: Special Terms and Conditions, Number 8. Settlement of Disputes. 9. SETTLEMENT OF DISPUTES A. The parties shall deal in good faith and attempt to resolve potential disputes informally. If the dispute persists, the Grantee shall submit to the BSCC Corrections Planning and Grant Programs Division Deputy Director a written demand for a final decision regarding the disposition of any dispute between the parties arising under, related to, or involving this Grant Agreement. Grantee’s written demand shall be fully supported by factual information. The BSCC Corrections Planning and Grant Programs Division Deputy Director shall have 30 days after receipt of Grantee’s written demand invoking this Section “Disputes” to render a written decision. If a written decision is not rendered within 30 days after receipt of the Grantee’s demand, it shall be deemed a decision adverse to the Grantee’s contention. If the Grantee is not satisfied with the decision of the BSCC Corrections Planning and Grant Programs Division Deputy Director, the Grantee may appeal the decision, in writing, within 15 days of its issuance (or the expiration of the 30-day period in the event no decision is rendered), to the BSCC Executive Director, who shall have 45 days to Page 493 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda CITY OF CHULA VISTA, CITY MANAGER’S OFFICE BSCC 1430-26 PAGE 4 OF 4 EXHIBIT D: SPECIAL TERMS AND CONDITIONS Rev 04/2020 render a final decision. If the Grantee does not appeal the decision of the BSCC Corrections Planning and Grant Programs Division Deputy Director, the decision shall be conclusive and binding regarding the dispute and the Contractor shall be barred from commencing an action in court, or with the Victims Compensation Government Claims Board, for failure to exhaust Grantee’s administrative remedies. B. Pending the final resolution of any dispute arising under, related to or involving this Grant Agreement, Grantee agrees to diligently proceed with the performance of this Grant Agreement, including the providing of services in accordance with the Grant Agreement. Grantee’s failure to diligently proceed in accordance with the State’s instructions regarding this Grant Agreement shall be considered a material breach of this Grant Agreement. C. Any final decision of the State shall be expressly identified as such, shall be in writing, and shall be signed by the Executive Director, if an appeal was made. If the Executive Director fails to render a final decision within 45 days after receipt of the Grantee’s appeal for a final decision, it shall be deemed a final decision adverse to the Grantee’s contentions. The State’s final decision shall be conclusive and binding regarding the dispute unless the Grantee commences an action in a court of competent jurisdiction to contest such decision within 90 days following the date of the final decision or one (1) year following the accrual of the cause of action, whichever is later. D. The dates of decision and appeal in this section may be modified by mutual consent, as applicable, excepting the time to commence an action in a court of competent jurisdiction. 10. UNION ACTIVITIES For all agreements, except fixed price contracts of $50,000 or less, the Grantee acknowledges that applicability of Government Code §§16645 through 16649 to this Grant Agreement and agrees to the following: A. No State funds received under the Grant Agreement will be used to assist, promote or deter union organizing. B. Grantee will not, for any business conducted under the Grant Agreement, use any State property to hold meetings with employees or supervisors, if the purpose of such meetings is to assist, promote or deter union organizing, unless the State property is equ ally available to the general public for holding meetings. C. If Grantee incurs costs or makes expenditures to assist, promote or deter union organizing, Grantee will maintain records sufficient to show that no reimbursement from State funds has been sought for these costs, and that Grantee shall provide those records to the Attorney General upon request. 11. WAIVER The parties hereto may waive any of their rights under this Grant Agreement unless such waiver is contrary to law, provided that any such waiver shall be in writing and signed by the party making such waiver. Page 494 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda CITY OF CHULA VISTA, CITY MANAGER’S OFFICE BSCC 1430-26 PAGE 1 OF 1 Appendix A: PROPOSITION 64 PUBLIC HEALTH AND SAFETY GRANT PROGRAM SCORING PANEL ROSTER Name Title Organization/Agency Ella Ban Environmental Scientist California State Water Resources Control Board Jose Barajas Assistant Branch Chief California Department of Cannabis Control Jacqueline Campion Deputy Director, Policy & Research California Department of Cannabis Control Brittany Falcon Program Analyst II Board of State and Community Corrections Jason Grundel Deputy State Public Defender State of California, Office of the State Public Defender Jim Keddy Executive Director Youth Forward Colin Medigovich Strategic Intelligence Analyst California Governor’s Office of Emergency Services Nikkole Melgoza Office of Program Operations California Department of Corrections and Rehabilitation Nancy O’Malley District Attorney (Ret.) Alameda County Douglas Roehler Staff Services Manager I California Department of Cannabis Control Killi Seto Deputy Lieutenant San Joaquin County Sheriff’s Office Douglas Smurr Attorney IV / Assistant General Counsel California Department of Cannabis Control Doug Snell Correctional Lieutenant (Ret.) California Department of Corrections and Rehabilitation George Tiongson Sergeant California Department of Cannabis Control Kellie Vasen Attorney IV California Department of Cannabis Control Page 495 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda BSCC Powered by Submittable Title Ci ty of Chul a Vi sta by Tanner W inslow in Proposition 64 Public Health & Safety Grant Program, Cohort 4- Request for Proposals twinslow@chulavistapdca.gov 03/30/2026 id. 53672877 Original Submission 03/30/2026 Score n/a KEY INFORMATION The Proposition 64 Public Health & Safety Grant Program, Cohort 4 Request for Proposals is organized into five (5) sections: Part I – Applicant Information Part II – Proposal Abstract Part III – Proposal Narrative Part IV – Project Budget (upload attachment) Part V – Attachments: Mandatory and Optional (upload attachments) Each section contains fields that require a response. Applicants may be prompted to provide written text, numerical input, select radial button options, or upload attachments. Some narrative response fields have character limits. W hen a character limit applies, a counter will display the total number of allowable characters and will update to show the number remaining as text is entered. Character limits include all letters, numbers, punctuation, and spaces. If the character limit is exceeded, a red prompt will appear stating: “You have exceeded the character limit.” Applicants may start and stop their application at any time during the solicitation period. To ensure information is saved in the BSCC– Submittable Application, applicants must select “Save Draft” at the bottom of the application before exiting. Applicants are prohibited from submitting the Prop 64 Grant Program, Cohort 4 application until all mandatory fields (identified with a red asterisk) are completed, all character limits are met, and all required documents have been uploaded. Applicants should review the Prop 64 Cohort 4 RFP Instruction Packet before beginning the application. The Instruction Packet contains all information necessary to successfully complete and submit the Prop 64 Cohort 4 application. The document is available at: http://www.bscc.ca.gov/proposition-64-public- health-safety-grant-program/.. CONFIDENTIALITY NOTICE: All documents submitted as a part of the Proposition 64 Public Health & Safety Grant Program proposal are public documents and may be subject to a request pursuant to the California Public Records Act. The BSCC cannot ensure the confidentiality of any information submitted in or with this proposal. (Gov. Code, § 6250 et seq.) PART I - APPLICANT INFORMATION This section requires information about the applicant (County/City), grant funds being requested, proposed project synopsis and project officials. Name of City or County Applicant City of Chula Vista Page 496 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Applicant Category Medium county or city (with 50,000 to 500,000 residents) *Check this box if you are a city or county with a population under 10,000. unchecked Tax Identification Number 95-6000690 Lead Public Agency (LPA) Information This sub-section requires information about the governmental agency with local authority of or within the applicant county or city that will be acting as the LPA. All Prop 64 grantees are required to designate a Lead Public Agency (LPA) to serve as the coordinator for all grant activities. The applicant may choose to fill the role of LPA itself or it may designate a department, agency, or office under its jurisdiction to serve as the LPA. The role of the LPA is to coordinate with local government agencies and non-governmental organizations (if applicable) to ensure successful implementation of the grant program. The LPA is responsible for data collection and management, overseeing evaluative activities, and will serve as the primary point of contact with the BSCC. Name of Lead Public Agency (LPA) Chula Vista City Manager's Office Project Title Chula Vista Youth Cannabis-Harm Reduction Initiative Project Summary The City of Chula Vista proposes a coordinated initiative between the Chula Vista City Manager’s Office, Chula Vista Police Department, SBCS, and SANDAG to strengthen cannabis regulation, enhance enforcement, and expand youth focused prevention. Rising youth marijuana use, declining perceptions of harm, and persistent illegal activity highlight the need for expanded education, intervention, and compliance efforts. The Chula Vista City Manager’s office will oversee fiscal management and overall project coordination. CVPD will conduct inspections, training, product testing, minor decoy operations, and quarterly enforcement against illegal operators, while also improving officer readiness and investigating juvenile cases. SBCS will deliver assessment driven diversion, prevention, and intervention services for referred youth. SANDAG will serve as the independent evaluator to support a data driven, community centered approach that reduces youth cannabis risks and enhances public safety. Project Purpose Areas (PPAs) PPA 1: Public Safety/Enforcement (Applicants that dedicate at least 70% of their budget to PPA 1 will earn priority points) PPA 3: Youth Development/Youth Prevention and Intervention Applicant's Physical Address 276 Fourth Avenue Chula Vista California 91910 US Page 497 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Applicant's Mailing Address (if different than physical address) Mailing Address For Reimbursement Payments 315 Fourth Avenue Chula Vista California 91910 US Project Director Courtney Chase Project Director's Title Deputy City Manager Project Director's Email Address cchase@chulavistaca.gov Project Director's Phone Number +16195855656 Financial Officer Adrian Del Rio Financial Officer's Title Director of Accounting & Finance, City of Chula Financial Officer's Email Address adelrio@chulavistaca.gov Financial Officer's Phone Number +16194093820 Day-To-Day Program Contact Tanner W inslow Day-To-Day Program Contact's Title and Agency/Department/Organization Detective, Chula Vista Police Department Day-To-Day Program Contact's Email Address twinslow@chulavistapdca.gov Day-To-Day Program Contact's Phone Number +16194762434 Day-To-Day Fiscal Contact Bryant Shimizu Page 498 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Day-To-Day Fiscal Contact's Title with Agency/Department/Organization Senior Management Analyst, Chula Vista Police Department Day-To-Day Fiscal Contact's Email Address bshimizu@chulavistapdca.gov Day-To-Day Fiscal Contact's Phone Number +16196915128 Name of Authorized Officer* Tiffany Allen Authorized Officer's Title Chula Vista City Manager Authorized Officer's Email Address tallen@chulavistaca.gov Authorized Officer's Phone Number +16196915031 I hereby certify I am vested by the Applicant with the authority to enter into contract with the BSCC, and the grantee and any subcontractors will abide by the laws, policies, and procedures governing this funding. checked PART II - PROPOSAL ABSTRACT The Proposal Abstract should provide a brief summary of the proposed project. This section will not be included in the rating of the proposal. Page 499 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda PROPOSAL ABSTRACT The City of Chula Vista proposes a coordinated, multi agency initiative between the Chula Vista City Manager’s Office, Chula Vista Police Department (CVPD), South Bay Community Services (SBCS), and the San Diego Association of Governments (SANDAG) to strengthen cannabis regulation, enhance enforcement, and expand youth focused prevention. Rising youth marijuana use, declining perceptions of harm, and ongoing illegal cannabis activity highlight the need for expanded education, intervention, and compliance efforts. Building on the success from Proposition 64 Cohorts 2 and 3—and informed by lessons learned and data collected over recent years—the proposed project refines and advances strategies to reduce youth access, improve regulatory compliance, and address the evolving cannabis landscape. Aligned with Proposition 64 (Prop 64) goals, the project includes four integrated components. First, CVPD will enhance compliance among cannabis businesses through inspections, training, product testing, and minor decoy operations. Second, the department will reduce illegal cannabis activity by proactively identifying, investigating, and conducting quarterly enforcement operations. Third, CVPD will promote youth safety and officer readiness through training on cannabis laws and thorough investigation of juvenile cases. Fourth, SBCS will deliver assessment driven diversion, prevention, and intervention services for youth in the city of Chula Vista, including evidence based counseling, cannabis education, family engagement, community service, and prevention messaging. The Chula Vista City Manager’s Office will serve as the Lead Public Agency (LPA) overseeing fiscal management and project coordination. SANDAG will serve as the independent evaluator to support a data driven, community centered approach that reduces youth cannabis risks and enhances public safety. Together, the partners will implement a data driven, community centered program designed to reduce youth cannabis risks, increase regulatory compliance, and enhance public safety across Chula Vista. PART III - PROPOSAL NARRATIVE This section requires responses Proposal Narrative Instructions The Proposal Narrative includes four sections: Project Need, Project Description, Project Organizational Capacity and Coordination, and Project Evaluation. The character limits and page equivalents for each narrative section are outlined below and must be followed when preparing proposal materials. The Project Need narrative may not exceed 8,400 total characters. The Project Description narrative may not exceed 14,000 total characters. The Project Organizational Capacity and Coordination narrative may not exceed 5,600 total characters. The Project Evaluation narrative may not exceed 5,600 total characters. Proposal Need The City of Chula Vista (CV) is located on the southern end of San Diego County, approximately four miles north of the U.S. / Mexican border. The city is 52 square miles, ranging from the coast of the San Diego Bay, to the inland mountains. According to estimates, it is the second largest city in San Diego County (SDC), with a population of 280,840, composed by 63% Page 500 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Hispanic/Latino, 18% other ethnicities, 15% W hite, and 5% Black, and about a third (29%) under the age of 18. The City is one the few (out of 18) in SDC that legalized the cultivation and commercial distribution of cannabis. Current licensed businesses in the CV include six storefront cannabis dispensaries and one manufacturing business the first cannabis storefront opened in April 2021, and crime associated with the business followed shortly after. During Prop 64 Cohort 2, CVPD conducted 61 inspections, 37 minor decoy operations, 85 surveillance operations, and 18 enforcement actions, resulting in 23 arrests, multiple citations, and the closure of illegal dispensaries. In Cohort 3, CVPD has carried out 24 inspections, 25 minor decoy operations, 47 surveillance operations, and 18 enforcement actions, leading to 21 arrests and numerous citations. These outcomes show that previous projects consistently met or exceeded their goals, reinforcing the city’s commitment to Prop 64 priorities and the need to sustain these efforts. At the same time, broader community data highlights why continued investment remains critical. In 2024, CV reported 8,891 crimes, 14% (1,219) of which were narcotics-related. In 2023, there were 3,819 adult and juvenile arrests, with 6% involving drugs. These data, however, do not fully capture marijuana’s role in justice-system involvement, and community perceptions help explain why usage trends persist. Since legalization, perceived harm has declined, and many now view marijuana as low risk. In a recent survey, most respondents acknowledged addiction risks, yet 82% still viewed marijuana as beneficial, largely for stress relief. Among juveniles, this disconnect is even more pronounced: in a 2024 study, 93% had tried marijuana, 73% had used it in the past month, and the average age of first use was 12.6, now earlier than alcohol or tobacco. Perceived harm has dropped sharply, with only 22% viewing regular use as very harmful, and most reporting easy access; 79% said marijuana was very easy to obtain, up from 64% in 2016. These shifting patterns bring added risks, reflected in rising poison control calls, ER visits, impaired driving incidents, crime near dispensaries, and butane hash oil lab explosions. Countywide, cannabis related ER discharges increased 476% from 2016 to 2022 (4,202 to 20,006), and overdose related ER discharges rose 469% (78 to 366). Marijuana exposure cases reported to California Poison Control also increased 145%, from 88 to 216. Community studies echo these concerns. Residents identified illegal drug use as a major reason for avoiding parks, and 15% cited impaired driving, drug use, and dispensaries as top issues. Illegal drug activity also ranked among the highest priorities for CVPD. Together with regional data, this feedback shows strong public concern and the need for expanded prevention, education, and enforcement. These challenges underscore the importance of focusing on school aged youth, when early intervention is most effective and can prevent risks from escalating while supporting healthier long term outcomes for the community. CV has approximately 100 K–12 schools serving more than 72,000 students, one community college with about 25,000 students, and a 4 year university under construction that will include academic space for 20,000 students. Since marijuana legalization, there has been a notable increase in smoke shops selling marijuana related products close to schools, Page 501 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda representing easier access for juveniles. W ith such a large concentration of youth, CVPD’s School Resource Officers (SRO) and school staff frequently encounter juveniles in possession of THC on school premises. This demand and market has also generated incentives for a growing black market. City officials continue to receive numerous complaints from the community (129 calls for service from the beginning of 2021 through December 2025) that marijuana businesses have been selling products to minors. Additionally, W hen CV’s first legal cannabis dispensary opened in 2021, there were three crime reports for providing juveniles with cannabis. As of February 2026, there have been 118 crime reports involving juveniles with cannabis, a noticeable increment over the course of 5 years. School Resource Officers (SRO) reports indicate that juveniles can purchase tobacco products online and have them delivered, suggesting they may do the same with cannabis. This underscores the need to ensure licensed dispensaries and delivery services do not sell to minors and to monitor the city for illegal operators targeting youth. There is increased evidence that illegal cannabis advertising and sales are moving towards social media and delivery services. W hile CVPD closed over thirty illegal storefront dispensaries, some of the original illegal cannabis activity transferred to delivery services. Enforcement against illegal activity requires extensive investigative work, including repeated buy and follow operations, surveillance, and coordinated teams to safely execute search warrants at potentially fortified or armed locations. Officers must also process evidence and manage citations or arrests, while continuing to ensure licensed dispensaries comply with regulations and identifying new illegal operators. CVPD also continues to work proactively to ensure that marijuana products are not being sold outside of authorized venues. CVPD has inspected multiple cigarette and smoke shops and identified THC products in several business. To ensure that THC products are sold only in authorized venues, CVPD will require ongoing enforcement operations to remove these products from Chula Vista’s 150 cigarette and smoke shops. There are also emerging public safety concerns related to legal marijuana sales. Citizen initiated calls for service at dispensaries rose from eight in 2021 to 45 in 2025—a 563% increase—totaling 302 calls over five years, most commonly for person disturbances. Since 2021, seven serious crimes have occurred at dispensaries, including two robberies, two aggravated assaults, two burglaries, and one grand theft. Although these numbers are small compared with citywide totals, their concentration within a limited number of locations highlights the need for increased police presence and consistent monitoring at dispensaries. Unfortunately, CVPD has the smallest number of sworn staff per 1,000 population of any SDC police department, at .1.05 compared to a regional average of 1.32. As a result, current resources significantly limit the ability to address the needs outlined above with existing sworn staffing levels. Therefore, additional support is necessary to continue responding effectively to these growing challenges and to ensure that enforcement and prevention efforts can keep pace with community needs. Youth prevention needs align with broader public health priorities, as factors like family stress, school disengagement, and substance exposure increase youth cannabis use and justice involvement. Rising demand highlights the need to expand structured diversion options that combine evidence based counseling, education, and family support. Page 502 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda An assessment driven, coordinated approach, linking youth to appropriate services early and engaging families, helps prevent deeper system involvement. Collaboration among law enforcement, behavioral health providers, and schools improves referrals and ensures youth receive developmentally appropriate services. Regional data and stakeholder feedback show growing service needs, underscoring the importance of continued investment in CV to support Prop 64 goals. Prop 64 grants have strengthened diversion, education, and enforcement efforts in CV, but rising youth cannabis access and increased referrals require further action. The proposed project builds on ongoing efforts and lessons learned to address evolving challenges. Continued funding is necessary to continue building the capacity to meet increasing demand and maintaining community safety. Project Description The needs identified in this proposal directly align with the intent of Proposition 64, which seeks to ensure public health and safety through responsible regulation, enforcement, and prevention efforts. Rising youth marijuana use, decreasing perceptions of harm, and the continued presence of illegal cannabis operations demonstrate a clear need for expanded prevention, education, and enforcement activities—core areas explicitly supported under Prop 64. Strengthening compliance among licensed businesses, preventing youth access, and reducing criminal activity associated with the illicit market all fulfill the initiative’s mandate to minimize public safety risks while promoting a well-regulated cannabis environment. The proposed activities respond to these priorities by enhancing enforcement capacity, expanding youth focused prevention programs, and supporting community education efforts that reduce harm and strengthen regulatory compliance. As such, The Chula Vista City Manager’s Office, CVPD, SBCS and SANDAG have designed a multi-pronged approach which combines these efforts into one cohesive program under the following goals: Goal 1: Strengthen Compliance Among Licensed Cannabis and Non Cannabis Businesses (PPA1) This goal focuses on promoting a safe, well regulated local marketplace by ensuring that both cannabis and non cannabis businesses comply with all relevant municipal and state laws. Through regular inspections, targeted compliance checks, and direct engagement with operators, CVPD will work to prevent violations before they occur. Activities such as cannabis inspections, training sessions for business owners, and product testing for chemical contents help reinforce proper business practices. In addition, conducting minor decoy operations supports the ongoing effort to prevent youth access and uphold community safety standards. Objectives • Ensure legal cannabis businesses comply with municipal codes and state cannabis regulations. • Ensure local non cannabis businesses remain compliant with relevant municipal and state cannabis laws. Activities • Conduct at least 8 cannabis inspections per year to ensure compliance among licensed businesses. • Provide training sessions to cannabis businesses to strengthen knowledge of legal requirements. Page 503 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda • Test hemp and CBD products for THC content and pesticides when encountered. • Conduct 4 minor decoy evaluations during years 1 and 2, and 8 during years 3 to 5 to monitor and prevent youth access. Goal 2: Reduce Illegal Cannabis Activity Through Targeted Investigation and Enforcement (PPA 1) This goal aims to disrupt illegal cannabis activity by proactively identifying, investigating, and enforcing actions against illicit operations within the city. CVPD will conduct surveillance, controlled buy efforts, and quarterly coordinated enforcement operations to uncover unlawful cannabis activity that has shown to effective in the past cohorts. By responding promptly to community complaints and intelligence, CVPD will ensure that illegal activities are addressed swiftly and effectively. These actions collectively protect the regulated market, support community safety, and reinforce the integrity of local and state cannabis laws. Objectives • Identify and investigate illegal cannabis operations within the region. • Coordinate and carry out enforcement operations against illegal cannabis activities. • Monitor the community for indicators of illegal cannabis activity and respond promptly to violations. Activities • Proactively identify and investigate illegal cannabis operations within the jurisdiction. • Conduct four surveillance or controlled buy operations per quarter to identify delivery services, storefronts, and actors carrying out illicit operations. • Conduct one coordinated enforcement operation per quarter targeting cannabis related crimes. • Evaluate and respond to community complaints and tips related to illicit cannabis activity. Goal 3: Improve Youth Safety and Strengthen Officer Preparedness Related to the Cannabis Market (PPA 1) This goal emphasizes both the protection of youth in the community and officer readiness to face challenges related to the cannabis market. Ongoing training ensures officers remain up to date on evolving cannabis laws, regulations, and enforcement strategies, strengthening their ability to respond effectively to challenges. At the same time, the goal prioritizes early intervention by ensuring that juvenile cannabis offenses are thoroughly investigated and handled in a timely manner. Together, these efforts help safeguard youth while equipping officers with the knowledge and skills needed to navigate the complexities of the cannabis market. Objectives • Increase officer knowledge and preparedness by providing ongoing training on cannabis laws, regulations, and enforcement strategies. • Investigate juvenile cannabis offenses to support early intervention and appropriate enforcement actions. Activities • Provide ongoing officer training on cannabis regulations, investigation practices, and enforcement strategies. • Investigate juvenile cannabis offenses, ensuring timely intervention and youth centered enforcement responses. Goal 4: Education, prevention, and intervention to reduce cannabis related Page 504 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda risks for youth, and divert from system involvement. SBCS will serve youth in the city of Chula Vista for diversion and prevention/intervention services. Youth referred for intervention and diversion will be paired with a trained case manager and receive mentorship, marijuana use education, individual and/or group counseling through SBCS evidence based practices. Services will be supported by community service and peer education activities, and quarterly marijuana education presentations within the community and/or campus. Objectives • Provide assessment driven diversion, prevention, and intervention services for elementary, middle, and high school youth in the Chula Vista area who are referred by CVPD, probation, schools, or self-referral. • Increase family engagement and support through evidence based case management and youth focused programming. • Strengthen youth decision making and resilience through evidence based substance use education and counseling. • Support reduction of youth cannabis use, access, and related harms through targeted education and prevention and intervention strategies. Activities • Enroll 45 youth in case management services and programming in year one. • Enroll 70 youth in case management services and programming per year during year 2. • Enroll 120 youth in case management services and programming per year during years 3-5. • Facilitate weekly evidence-based psycho-educational and/or therapeutic groups for youth participants • Prioritize elementary, middle, and high school youth—and their families— residing in Chula Vista for all program services. • Screen all referred youth promptly using the Family W ell Being Assessment (FW BA) to identify needs, risks, and appropriate service pathways. • Assign each youth to a Youth and Family Development Associate (YFDA) case manager who will act as a liaison between CVPD and the youth prevention and intervention team. • Provide youth referred for diversion and intervention with cannabis education along with individual or group counseling using SBCS evidence based practices. • Refer youth reporting marijuana use or abuse to the Seeking Safety EBP and refer youth without identified substance use needs to One Circle Foundation EBPs for prevention based support. • Deliver ongoing community service and peer education activities to reinforce pro social engagement and youth leadership. • Provide quarterly marijuana education presentations and monthly social media prevention messaging coordinated jointly with CVPD and SBCS staff. All goals, objectives, and activities outlined in this program will be implemented in alignment with the attached W ork Plan. The W ork Plan provides the structure for carrying out enforcement efforts, compliance monitoring, and youth focused intervention activities. By following this framework, partners will maintain consistency in operations, meet required activity benchmarks, and advance each program goal through coordinated and well documented actions. Page 505 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Project Organizational Capacity and Coordination This program has been designed as partnership between four organizations, with each one clearly in charge of different functions and goals within this proposal. All four partners have collaborated extensively on multiple projects including in Cohorts 2 and 3 of the Prop 64 grants. Implementing Partner CVPD will serve as the primary implementing partner for this grant, leading all enforcement and investigative components to ensure compliance with cannabis regulations and reduce youth access to THC products. The department is well positioned to carry out these responsibilities, building on its established efforts to monitor local retail environments, conduct compliance checks, and respond to emerging trends in youth cannabis use. W ith additional funding, CVPD will be able to expand its enforcement capacity, increase proactive operations, and strengthen coordination with community partners to support a comprehensive strategy that prioritizes public safety and youth well being. Detective Tanner W inslow will serve as the main point of contact. He has over six years of law enforcement experience and has spent the past year with CVPD dedicated exclusively to managing and conducting marijuana investigations. Detective W inslow has completed 12 cannabis related arrests, led 53 enforcement operations and inspections, and participated in 21 presentations to more than 800 participants. Community Partner Founded in 1971, SBCS is the largest social service provider based in Chula Vista, with more than 50 years of experience delivering youth prevention and intervention programs, including BSCC-funded initiatives. W ith deep community ties and strong trust among local families, SBCS is well-positioned to support the proposed program. The project will operate under SBCS’s Youth and Family W ellness Department, led by Sandy Keaton, who has over 20 years of experience with justice-involved youth and will oversee reporting, staffing, and coordination with CVPD. She supervises Mandy Miscevic, Director of Youth Prevention and Intervention, who has 18 years of experience and will manage daily operations. The YFDA will liaison with CVPD and CAT/YPI teams. Two YFDA staff will be hired (one in year one, two in year two), each with at least two years of experience, managing caseloads of 20 youth and supporting enrollment, screening, and program facilitation. Lead Public Agency The Chula Vista City Manager’s Office will serve as the Lead Public Agency (LPA). The Chula Vista City Manager’s Officer is well suited to serve in its role as the LPA and will manage all fiscal operations, be the primary point of contact for the BSCC, and manage overall project coordination. The Chula Vista City Manager’s Officer has a strong professional relationship with the three partner agencies and has extensive experience with managing complex projects and fiscal operations. Courtney Chase, Deputy City Manager will serve as the project director. Chase holds an MBA in Management and Finance from San Diego State University, a Bachelor’s degree in Political Science with a minor in Economics from University of California, San Diego and is an IPMA-HR Certified Professional (IPMA-CP). W ith over 20 years of experience in public sector human resources, Chase was appointed as the Director of Human Resources/Risk Management for the City of Chula Vista in March Page 506 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 2015 and served in this capacity until September 2023 overseeing employee relations, recruitment and selection, classification and compensation, employee benefits administration, risk management (safety and disability), and training. Prior to the City of Chula Vista she held positions as Labor Relations Officer in the County of San Diego and Human Resources Manager for the cities of Coronado and Encinitas. Independent Evaluator SANDAG will serve as the Independent Evaluator for this project. The agency is well suited for this role, with a long history of evaluating major criminal justice and public safety initiatives, including five projects across two cohorts of the Proposition 64 grant program, as well as multiple other BSCC funded efforts. Additionally, SANDAG has served as the regional clearinghouse for crime statistics in San Diego County for more than 45 years. Staff have completed all required law enforcement background checks and possess extensive training and experience in research methods, statistical analysis, and data interpretation. Dr. Octavio Rodriguez Ferreira, SANDAG’s Principal Criminal Justice Researcher, will serve as the lead evaluator. W ith more than 20 years of experience in policy analysis, research, and grant management, Dr. Rodriguez Ferreira will oversee evaluation design and implementation, ensure data integrity, and lead all analytic and reporting activities. Timeline for execution The City of Chula Vista is well positioned to begin and seamlessly continue this project because CVPD, SBCS, and SANDAG are already collaborating under the current Prop 64 Cohort 3 grant and require only extensions of their existing agreements to initiate Cohort 4 activities. If funded, the project can move forward immediately, with enforcement activities, youth prevention and diversion services, and evaluation components implemented without delay. A more detailed multi-year implementation timeline is presented on the table attached to this proposal. Project Evaluation As the independent evaluator, SANDAG will conduct a comprehensive process and outcome evaluation to monitor program implementation, assess fidelity to the approved work plan, and determine the extent to which the project achieves its intended goals and outcomes. SANDAG staff will be engaged from the earliest stages of program development to ensure that the evaluation framework is fully aligned with program objectives. This includes developing data collection tools, establishing research protocols and timelines, and finalizing the Local Evaluation Plan (LEP) in accordance with BSCC requirements. SANDAG will participate in all project team meetings and will produce user friendly data dashboards displaying real time information on enforcement activities, service delivery, and outreach outputs. These dashboards, along with quarterly evaluation summaries, will support data driven discussions, allow partners to identify trends, and guide midcourse adjustments to strengthen program effectiveness. Process and Outcome Measures SANDAG brings extensive experience in designing and implementing process and outcome evaluations and will work closely with CVPD, SBCS, and other partners to develop the LEP and final Local Evaluation Report (LER). These documents will incorporate valid and reliable measures drawn Page 507 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda from multiple data sources, prioritizing the use of existing systems whenever feasible. A preliminary list of process and outcome measures— including research questions and data sources—is provided in Table 1 at the end of this section. In addition to youth focused outcomes, the evaluation will include enforcement related outcome measures that directly reflect program objectives and Prop 64 requirements. These may include: changes in the number of illegal cannabis product seizures; reductions in THC products found during retailer inspections; increases in retailer compliance rates over time; trends in enforcement actions related to underage sales; frequency and outcomes of CVPD compliance checks; and changes in calls for service, citations, or arrests related to illegal cannabis activity. These outcomes will help assess whether enforcement components are reducing youth access to illegal products and improving community safety. Most outcome measures will focus on individual level change among youth participants, assessing both program effectiveness and variation in results across subpopulations. All data collection procedures and instruments will be finalized during the evaluation phase in collaboration with program partners to ensure accuracy, consistency, and alignment with BSCC standards. Recognizing the importance of implementation fidelity, SANDAG will collaborate with partners to understand curricula and strategies, select fidelity monitoring tools, and administer stakeholder and client surveys to assess satisfaction, perceived impact, and service quality. Any deviations from planned strategies will be documented, including the rationale for these adjustments. Data Collection and Analysis SANDAG will coordinate closely with partners to extract baseline and ongoing data from existing systems, including CVPD enforcement and crime data (calls for service, arrests, citations, code violation records) and SBCS individual level service records. SANDAG evaluators possess the required security clearances and extensive experience with the secure systems used for data transfer and storage SANDAG’s direct access to the Automated Regional Justice Information System (ARJIS) is a significant asset to the evaluation, as it enables comprehensive and timely analysis of law enforcement activity across the region. Through ARJIS, SANDAG can incorporate detailed, data on arrests, citations, field interviews, and incident reports relevant to cannabis-related enforcement and development outcomes. This access allows evaluators to generate accurate baselines, track trends longitudinally, and link program activities to measurable impacts. Additionally, SANDAG’s longstanding operational familiarity with ARJIS ensures data are extracted, interpreted, and integrated into the evaluation with a high degree of accuracy and reliability. This capability strengthens the rigor of both the process and outcome evaluation components and supports BSCC’s expectations for data-driven performance monitoring and continuous improvement. Methodology As outlined in the work plan and to be finalized in the LEP, the evaluation will use a mixed method, quasi experimental design to measure change over time. Descriptive, bivariate, and multivariate analyses will be conducted to characterize participants, assess program outcomes, and identify predictors of success. Findings will be shared continuously with program partners to support ongoing program refinement, guide decision making, and ensure accountability throughout the grant period. Page 508 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda PART IV: PROJECT BUDGET ATTACHMENT The Budget Attachment must be filled out completely and accurately. Applicants are solely responsible for the accuracy and completeness of the information entered in the Budget Attachment. All project costs must be directly related to the objectives and activities of the project, demonstrating how the funds will be used to address the local needs due to the impact of legalizing cannabis in California. The Budget Table must cover the entire 66-month grant period. For additional guidance related to allowable uses of grant funds, refer to pages 8-15 of the Proposition 64 Request for Proposals (RFP). Project Budget Attachment 2._Budget_Attachment_-_Prop_64_Chula_Vista_v 2.xlsx PART V - ATTACHMENTS: MANDATORY AND OPTIONAL In addition to the Budget Attachment, the list of mandatory attachments include: Project W ork Plan Letter of Eligibility Certification of Compliance with BSCC Policies on Debarment, Fraud, Theft, and Embezzlement Criteria for Non-Governmental Organizations Receiving BSCC Funds The Governing Board Resolution attachment upload is optional at Application submission. However, it will be required if the project is awarded Prop 64 Cohort 4 Grant Funds. These documents are stand-alone documents available on the BSCC Proposition 64 Homepage: http://www.bscc.ca.gov/proposition-64-public-health-safety-grant-program/. Download, complete, and upload where prompted below. PROJECT W ORK PLAN 3.-W ork-Plan-Appendix_G_-_Prop_64_Chula_Vista.pdf Letter of Eligibility Letter_of_Eligibility.pdf Certification of Compliance with BSCC Policies on Debarment, Fraud, Theft, and Embezzlement Compliance.pdf Criteria for Non-Governmental Organizations Receiving BSCC Funds as a Subcontractor NGO.pdf Governing Board Resolution (Optional) Page 509 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda A. Grant Funds for PPA 1: Public Safety/Enforcement B. Grant Funds for PPA 2, 3, and/or 4 Total Requested Grant Funds (A+B) $1,670,043 $0 $1,670,043 $74,000 $0 $74,000 $277,000 $63,000 $340,000 $0 $710,000 $710,000 $221,950 $0 $221,950 $24,606 $0 $24,606 $167,004 $2,267,599 $773,000 $3,207,603 A. Grant Funds for PPA 1: Public Safety/Enforcement B. Grant Funds for PPA 2, 3, and/or 4 Total Requested Grant Funds (A+B) $1,147,085 $0 $1,147,085 $25,934 $0 $25,934 $330,454 $0 $330,454 $76,563 $0 $76,563 $90,007 $0 $90,007 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,670,043 $0 $1,670,043 A. Grant Funds for PPA 1: Public Safety/Enforcement B. Grant Funds for PPA 2, 3, and/or 4 Total Requested Grant Funds (A+B) $40,000 $0 $40,000 $5,000 $0 $5,000 $15,000 $0 $15,000 $14,000 $0 $14,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $74,000 $0 $74,000 Some of the operations will occur after hours and on weekends, on overtime, to be effective. A typical enforcement operation requires a Sergeant, an Agent, several undercover detectives, and a uniformed officer. A basic enforcement operation lasts approximately 5 hours, until the arrest or citation is completed. An arrest report takes approximately 3 hours to complete. A basic enforcement operation yields at least one cell phone, which holds a wealth of information about illegal cannabis operations. To access the information contained inside a cell phone, a search warrant must be written. Writing a search warrant for a cell phone, and coordinating approval for it, takes approximately 3 hours, processing can take up to 10 hours. Investigating juvenile cannabis sales requires multiple social media search warrants, which take approximately 3 hours each. Processing the information from the search warrant returns can take up to 10 hours. Taking further enforcement action based off investigations and search warrant returns, such as executing a search of a business, building, or an arrest warrant, would require an additional Officers and Sergeants. Previous search warrants on illegal cannabis dispensaries required more than 20 Officers, many of which were on overtime. The regular activities of Cohort 4 will consume a majority of the assigned Detective’s time. Some of the investigations will need to be completed on overtime with the assistance of other Detectives. For the first 2 years of Prop 64 Cohort 4, Cohort 3 will overlap from July 1, 2026 to April 30, 2028. Due to staffing limitations, an officer on overtime will perform the duties associated with Cohort 4 until a detective is able to fulfil the duties. Upon completion of Cohort 3, a detective will be assigned to Cohort 4. 1. The Special Investigations Unit is comprised of 11 Detectives, Task Force Officers, Agents, and Sergeants. Previous search warrants found suspects to be armed with various types of firearms and other dangerous weapons. Additionally, due to current federal immigration enforcement activity there is a growing concern of being mistaken for a federal officer based on the color of current gear (dark green). Additionally, current body armor is set to expire in 2028. New body armor in black or blue would alleviate these unnecessary risks when conducting enforcement actions related to Prop 64 investigations. 2.To identify illegal businesses and their supply locations, multiple cannabis buys of increasing amounts must be performed. One ounce of illcit cannabis costs approximately $200 per ounce. The funds will be expended over the 5-year grant. 3. Previous cannabis enforcement operations required vehicle trackers, which helped identify stash houses and coconspirators. Many of the trackers were lost as vehicles were tracked or removed by the suspects. CVPD Special Operations, which is the parent unit of NET and SIU, have lost multiple trackers which has compromised the ability to gather important information when requested by the Cohort 3 Detective. It is understood that a percentage of deployed trackers will be lost, found by the suspect, or otherwise forfeited. 10 vehicle trackers would replenish the supply of lost trackers. 4. The average preventative maintenance cost for a vehicle within the Special Operations Division is roughly $1,200 per year. This figure does not include repair costs for broken parts and damage. $7,000 for 5 years of preventative maintenance and damage repair for each vehicle will ensure vehicles will be in service and available to assist towards the goals of the grant. Percentage of Grant Funds Dedicated to PPA 1: Public Safety/Enforcement (excludes amount budgeted for Indirect Costs)70.69% Budget Category TOTAL 6. Other (Travel, Training, etc.) 1. Salaries and Benefits 2. Services and Supplies $2,000 per unit TOTAL Description of Services or Supplies CVPD First Year Over Time Officer Assistance CVPD Operation & Investigation OT Officers CVPD Operation & Investigation OT Agent CVPD Operation & Investigation OT Sergeant 2a. Services and Supplies 1a. Salaries and Benefits 1.0 Sergeant at $147.87/HR x 600 hours over 5 years + Medicare Calculation for Expenditure Position Title CVPD Detective 4. Non-Governmental Organization (NGO) Subcontracts 2b. Services and Supplies Narrative: Provide a brief description for each item that explains how it will be used toward fulfilling grant objectives. 1b. Salaries and Benefits Narrative: Provide a brief description for each position that addresses their role on the grant project. 5. Equipment/Fixed Assets $167,0047. Indirect Costs (For PPAs 1 through 4) 3. Professional Services or Public Agency Subcontracts Vehicle trackers City of Chula Vista Buy+bust funds for enforcement opertions x 5 years Name of City or County Applicant: 10 trackers x $1,100 + annual service x 5-years- $600 (Show as either % FTE or Hourly Rate) & Benefits 1.0 FTE Annual Salary and Benefits for 5 years 1.0 Officer at $102.25/HR x 250 hours over 5 years + Medicare TOTAL 5.0 Officers at $108.58/HR x 600 hours over 5 years + Medicare 1.0 Agent at $125.78/HR x 600 hours over 5 years + Medicare 2026 Proposition 64 Public Health & Safety Grant Program - Proposal Budget and Budget Narrative Grant Term: July 1, 2026 through December 31, 2031 20 Level III body armor Enforcement buy+bust funds Detective vehicle maintenance 2 vehicles x $7,000 each Note: Budget Categories 1 - 7 will auto-populate based on the information entered in the sections below. Do not alter or recreate this budget template. Applicants that do not use the BSCC Budget Template will be disqualified. Page 510 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda A. Grant Funds for PPA 1: Public Safety/Enforcement B. Grant Funds for PPA 2, 3, and/or 4 Total Requested Grant Funds (A+B) $25,000 $0 $25,000 $252,000 $63,000 $315,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $277,000 $63,000 $340,000 A. Grant Funds for PPA 1: Public Safety/Enforcement B. Grant Funds for PPA 2, 3, and/or 4 Total Requested Grant Funds (A+B) $0 $710,000 $710,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $710,000 $710,000 A. Grant Funds for PPA 1: Public Safety/Enforcement B. Grant Funds for PPA 2, 3, and/or 4 Total Requested Grant Funds (A+B) $136,000 $0 $136,000 $30,950 $0 $30,950 $55,000 $0 $55,000 $0 $0 $0 $0 $0 $0 $221,950 $0 $221,950 For the Financial Audit, a contractor will be idetified at the time of the audit. Calculation of costs based on previosus financial audits for Prop 64 projects. SANDAG Staff will serve as the Independent Evaluator, and will be in charge of generating the Local Evaluation Plan, quarterly dashboards and reports, collect and analyze qualitative data from the Youth Development component, participate in multiple meetings and complete the final report. The subcontract will cover salaries for the following positions: - Principal Analyst will be the main responsible of the administration and will design and oversee the evaluation. - Associate Researcher will be the general coordinator of the project and the main point of contact between all partners. - Administrative Analyst will be taking care of supporting administrative matters and assisting with research tasks. - Research Analysts (I/II) will be responsible for data collection, analysis, and reporting. - Research Assistant will suport the team in both research tasks. SBCS is the NGO partnered with CVPD and SANDAG for this grant. SBCS will use Prop 64 for salaries for Youth and Family Development Associates (YFDA) that will work 100% for the program providing education, prevention, and interventions services using assessment driven case management and evidence-based program (EBP). Funds will directly support the following activities: • Enroll 45 youth in case management services and programming in year one. • Enroll 70 youth in case management services and programming per year during year 2. • Enroll 120 youth in case management services and programming per year during years 3-5. • Facilitate weekly evidence-based psycho-educational and/or therapeutic groups for youth participants • Screen all referred youth promptly using the Family Well ‑Being Assessment (FWBA) to identify needs, risks, and appropriate service pathways. • Assign each youth to a Youth and Family Development Associate (YFDA) case manager who will act as a liaison between CVPD and the youth prevention and intervention team. • Provide youth referred for diversion and intervention with cannabis education along with individual or group counseling using SBCS evidence ‑based practices. • Refer youth reporting marijuana use or abuse to the Seeking Safety EBP and refer youth without identified substance ‑use needs to One Circle Foundation EBPs for prevention ‑based support. • Deliver ongoing community service and peer ‑education activities to reinforce pro‑social engagement and youth leadership. • Provide quarterly marijuana‑education presentations and monthly social media prevention messaging coordinated jointly with CVPD and SBCS staff. 1. The Prop 64 Cohort 2 and 3 Detective traveled throughout Chula Vista and San Diego County to conduct surveillance on illegal cannabis deliveries. For example, a Cohort 2 enforcement operation that began in Chula Vista, ended with a search warrant on a facility in Fullerton, with extensive surveillance in El Cajon. Due to vehicle wear and tear, these vehicles being utilized by detectives are constantly needing repair, maintenance and replacement. Undercover fleet vehicles at CVPD are limited and additional assigned detective vehicles will help further the goals of the Prop 64 Cohort 4 Detective. 2. Surveillance and tracking operations require multiple officers for extended durations. Technology can reduce the number of officers required, enhance the safety of the operation, and gather important evidence. The Prop 64 Cohort 3 Detective has relied heavily on the CVPD Special Investigation Unit and Narcotics Enforcement Team for assistance. Many times, multiple locations must be surveilled at the same time. The Cohort 3 Detective has had to reduce surveillance, often compromising missions, due to the unavailability of officers to assist. Covert vehicle cameras would allow the Cohort 4 Detective to safely surveil areas with minimal officers, while gathering evidence for cases. The current outfitted Covert camera vehicle was not professionally installed and has minimal battery life, which limits its use. A professionally outfitted cover camera vehicle will reduce man hours needed to surveil targets. 3. The prop 64 Cohort 2 and 3 detectives seized thousands of pounds of illegal cannabis product and evidence related to investigations of illegal cannabis sales. These items of evidence are often times seized in bulk during the execution of search warrants. There is a consistent need for additional assistance in transporting the bulk evidence following the seizure. An evidence van will assist with reducing man-power and depleting resources from other investigations. The evidence vehicle will help further the goals of the Prop 64 Cohort 4 Detective. Description of Subcontracts Crime Point replacement Cameras + installation 1 Ford E-350 or similar at $55,000 Detective Vehicles Covert Vehicle Camera Car Evidence Van 2 Vehicles: $50,000 MSRP for mid size SUV + $50,000 MSRP for mid size pick up truck + $18,000 per vehicle for equipment upfitting (lights, tint, radios, etc.) Calculation for Expenditure 5 years of activities addressing goals under PPA 3 for SBCSCommunity Partner Subcontract Independent Evaluator TOTAL TOTAL 3a. Professional Services or Public Agency Subcontracts 4a. Non-Governmental Organization (NGO) Subcontracts 3b. Professional Services or Public Agency Subcontracts Narrative: List each consultant and/or public agency that will receive grant funds. Provide a brief description of the services that will be provided. 4b. Non-Governmental Organization (NGO) Subcontracts Narrative: List each NGO subcontractor that will receive grant funds. Provide a brief description of the services that will be provided. 5b. Equipment/Fixed Assets Narrative: List any equipment or fixed assets that will be purchased with grant funds and provide a brief description of each item that explains how it will be used toward fulfilling grant objectives. 5a. Equipment/Fixed Assets Description of Equipment/Fixed Assets Calculation for Expense See below. Calculation for Expenditure Financial Audit Subcontract See below. Description of Professional Service(s) TOTAL Page 511 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda A. Grant Funds for PPA 1: Public Safety/Enforcement B. Grant Funds for PPA 2, 3, and/or 4 Total Requested Grant Funds (A+B) $6,000 $0 $6,000 $15,722 $0 $15,722 $2,884 $0 $2,884 $0 $0 $0 $0 $0 $0 $0 $0 $0 $24,606 $0 $24,606 Grant Funds Total Requested Grant Funds $167,004 $167,004 $422,797 $0 $0 $563,730 Please see Instructions tab for additional information regarding Indirect Costs. If the amount exceeds the maximum allowed and/or turns red , please adjust it to not exceed the line-item noted. The California Narcotics Officer Association is the preeminent training program for drugs and narcotics, including cannabis. CNOA conference offers multiple days of training on controlled substances including cannabis. There are special classes for cannabis investigations and awareness. By sending the Cohort 3 Detective, and the detectives from the Special Investigations Unit, knowledge related to cannabis investigations will be spread among all the detectives involved in Prop 64 cannabis enforcement investigations. The California Cannabis Enforcement Summit is a conference hosted by the Department of Cannabis Control. The conference offers training and resources directly related to cannabis enforcement. The conference offers several days’ worth of classes directly related to the enforcement goals of the Prop 64 detective. For this grant program, indirect costs may be charged using only one of the two options below: 1) Indirect costs not to exceed 15 percent (15%) of all grant-funded costs, excluding equipment and fixed assets. Applicable if the applicant does not have a federally approved indirect cost rate. If using Option 1) grant funds allocated to Indirect Costs may not exceed: 2) Indirect costs not to exceed 20 percent (20%) of all grant-funded costs, excluding equipment and fixed assets. Applicable if the applicant has a federally approved indirect cost rate. Amount claimed may not exceed the applicant's federally approved indirect cost rate. If using Option 2) grant funds allocated to Indirect Costs may not exceed: $167,004 $167,004 2 participants = 2025 Registration- $295, $250 flights per attendee, $49 per diem, $250 hotel per night x 2 participants for 3 day 2026 Registration $800, Flights $250 round trip, Per Diem $49 per day, hotel $250 per night for 7 participants (4 nights) 7a. Indirect Costs Description of Other (Travel, Training, etc.) BSCC Prop 64 Cohort 4 staff training CNOA Training for Enforcement officers California Cannabis Enforcement Summit Calculation for Expense TOTAL $1,500 for flights hotel and per diem x 4 participants 6a. Other (Travel, Training, etc.) 6b. Other (Travel, Training, etc.) Narrative: Provide a brief explanation for how each item listed above will contribute toward fulfilling grant objectives. Please budget for at least one 2-day trip to Sacramento for 3-5 key grant team members. 7b. Indirect Costs Narrative: $167,004 of Indirect costs, 10% of CVPD's Salaries and Wages at $1,670,042. Page 512 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Prop 64 PH&S Grant Project Work Plan Complete this required document. You will be prompted to upload this attachment to the BSCC Submittable Application. Instructions: Applicants must complete a Project Work Plan using the format below. Provided goals and objectives must have a clear relationship to the need and intent of the grant. The Project Work Plan must attempt to identify activities/services and estimate timelines for the entire grant term. The plan must identify the top three goals and corresponding objectives, with a minimum of one goal pertaining to each identified PPA. Completed plans should identify: 1. the project’s top goals and objectives. 2. how the goal(s) will be achieved in terms of the activities/services, responsible staff/partners, and the timelines. 3. a list of the data elements to be collected. Name of City or County Applicant: City of Chula Vista (1) Goal:‑ (B) Ensure local non-cannabis businesses are complying with municipal and state cannabis laws Outcome Measures: 2. Conduct 4 minor decoy evaluations annually to monitor and prevent youth access in years 1 and 2. 3. Conduct 8 minor decoy evaluations annually to monitor and prevent youth access in years 3-5 4. Provide training sessions to cannabis businesses to strenghten knowledge of legal requierements. 5. Test hemp and CBD products for THC and pesticides when encountered. 1. Chula Vista Police Department 1. 7/1/2026 2. 7/1/2026 3. 7/1/2028 1. 6/30/2031 2. 6/30/2028 3. 6/30/2031 Page 513 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda List data and sources to be used to measure outcomes: Calls for service/crime/arrest/citation records from CVPD and the Automated Regional Justice Information System, investigation tracking sheets and code enforcement checklist results, training materials from business trainings/attendance logs (2) Goal: Reduce Illegal Cannabis Activity Through Targeted Investigation and Enforcement (PPA1) Objectives (A., B., etc.) (A) Monitor the community for indicators of illegal cannabis activity and respond promptly to violations, (B) Identify and investigate illegal cannabis operations within the city, (C) Coordinate and carry out enforcement operations against illegal cannabis activities. Outcome Measures: related to cannabis activities. 2. Conduct four surveillance or controlled-buy operations per quarter to identify delivery services, strorefront, and actors.within the jurisdiction 3. Proactively identify and investigate illegal cannabis operations 4. Conduct one coordinated enforcement operation per quarter targetting illegal cannabis related crimes. 1. Department 1. 7/1/2026 1.6/30/2031 Information System and investigation tracking sheets. Page 514 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda (3) Goal: Improve Youth Safety and Strengthen Officer Preparedness Related to Cannabis Market Objectives (A., B., etc.) (A) Increase officer knowledge and preparedness by providing ongoing training on cannabis laws, regulations, and enforcement strategies. (B) Investigate juvenile cannabis offenses to support early intervention and appropriate enforcement actions Outcome Measures: A decrease in cannabis related crimes investigation practices, and enforcement strategies. 2. Investigate juvenile cannabis offenses, ensuring timely 1. Department 1. 7/1/2026 1. 6/30/2031 Information System and investigation tracking sheets, officer training materials/training attendance sheets Page 515 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda (4) Goal:Prevent or decrease use of marijuana among youth at-risk. (PPA3) identified by law enforcement, probation, schools, and communities entities who are at risk or engange in marijuana use and abuse. (B) Provide referrals to substance use or mental health treatment when needed. Outcome Measures: At least 90% of youth receiving case managed services will demonstrated decreased needs as measured by the Family Well Being programming in year one. 2. Enroll 70 youth in case management services and programming per year during year 2. 3. Enroll 120 youth in case management services and programming per year during years 3- 4. Facilitate weekly evidence-based psycho-educational and/or therapeutic groups for youth participants 5. Conduct 1 a month pro-social community service activities for youth that include marijuana and substance use prevention and 1. SBCS 1. 7/1/2026 2. 7/1/2027 3. 7/1/2028 4. 7/1/2026 5. 7/1/2026 1. 6/30/2027 2. 6/30/2028 3. 6/30/2029 4. 6/30/2031 5. 6/30/2031 Page 516 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda CITY OF CHULA VISTA, CITY MANAGER’S OFFICE BSCC 1430-26 PAGE 1 OF 2 APPENDIX B: CRITERIA AND ASSURANCE FOR NON-GOVERNMENTAL ORGANIZATIONS THAT RECEIVE BSCC GRANT FUNDS AS A SUBCONTRACTOR The Proposition 64 Public Health and Safety (Prop 64 PH&S) Grant Program, Cohort 4, includes requirements that apply to non-governmental organizations that receive BSCC grant funds as subcontractors. Grantees are responsible for ensuring that all subcontracted third parties continually meet these requirements as a condition of receiving any Prop 64 PH&S grant funds. These requirements are as follows. Any non-governmental organization that receives Prop 64 PH&S grant funds must: • Have been duly organized, in existence, and in good standing at least six (6) months prior to the start date of the Grantee’s Grant Agreement with BSCC. Note: Non-governmental organizations that have recently reorganized or have merged with other qualified non-governmental organizations that were in existence prior to the six (6) month date are also eligible, provided all necessary agreements have been executed and filed with the California Secretary of State prior to the start date of the applicant’s Grant Agreement with BSCC. • Be registered with the California Secretary of State’s Office, if applicable. • Have a valid business license, Employer Identification Number (EIN), and/or Taxpayer ID (if sole proprietorship). • Have any other state or local licenses or certifications necessary to provide the services requested (e.g., facility licensing by the Department of Health Care Services), if applicable. In the table below, provide the name of the Grantee and list all subcontracted third parties. See next page for signature block. Name of Grantee: Name of Subcontracted Third Party Address Email / Phone Meets All Requirements Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No ☐ Yes ☐ No ☐ Page 517 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda CITY OF CHULA VISTA, CITY MANAGER’S OFFICE BSCC 1430-26 PAGE 2 OF 2 APPENDIX B: CRITERIA AND ASSURANCE FOR NON-GOVERNMENTAL ORGANIZATIONS THAT RECEIVE BSCC GRANT FUNDS AS A SUBCONTRACTOR Grantees are required to update this list and submit it to BSCC any time a new third-party subcontract with an NGO is executed after the initial assurance date. Grantees shall retain (on site) applicable source documentation for each subcontracted party that verifies compliance with the requirements listed in the Prop 64 PH&S RFP. These records will be subject to the records and retention language found in the Standard Agreement. Unless prior approval is obtained, the BSCC prohibits disbursement or reimbursement to any NGO that does not meet the requirements listed above and for which the BSCC does not have a signed Criteria and Assurance form on file. A signature below is an assurance that all requirements listed above have been met. AUTHORIZED SIGNATURE (This document must be signed by the person who is authorized to sign the Grant Agreement.) NAME OF AUTHORIZED OFFICER TITLE TELEPHONE NUMBER EMAIL ADDRESS STREET ADDRESS CITY STATE ZIP CODE APPLICANT’S SIGNATURE (verified e-signature is acceptable) DATE x Page 518 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 1 City of Chula Vista Agreement No.: 2026-276 Service Provider Name: SBCS Corporation Rev. 6.4.2026 CITY OF CHULA VISTA CONTRACTOR/SERVICE PROVIDER SERVICES AGREEMENT WITH SBCS CORPORATION TO PROVIDE DIVERSION, PREVENTION AND INTERVENTION SERVICES FOR THE PROPOSITION 64 PUBLIC HEALTH AND SAFETY COHORT 4 GRANT PROGRAM This Agreement is entered into effective as of July 1, 2026 by and between the City of Chula Vista, a chartered municipal corporation (“City”) and SBCS Corporation, A California Corporation (“Contractor/Service Provider”) (collectively, the “Parties” and, individually, a “Party”) with reference to the following facts: RECITALS WHEREAS, since 1971, SBCS Corporation (formerly South Bay Community Services) has been working to transform communities to support the well-being and prosperity of children, youth and families throughout San Diego County; and WHEREAS, SBCS Corporation has partnered with the Police Department since 1985 and tailored their programs to meet the needs of the City; and WHEREAS, Contractor/Service Provider warrants and represents that it is experienced and staffed in a manner such that it can deliver the services required of Contractor/Service Provider to City in accordance with the time frames and the terms and conditions of this Agreement. [End of Recitals. Next Page Starts Obligatory Provisions.] Page 519 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 2 City of Chula Vista Agreement No.: 2026-276 Service Provider Name: SBCS Corporation Rev. 6.4.2026 OBLIGATORY PROVISIONS NOW, THEREFORE, in consideration of the above recitals, the covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which the Parties hereby acknowledge, City and Contractor/Service Provider hereby agree as follows: 1. SERVICES 1.1 Required Services. Contractor/Service Provider agrees to perform the services, and deliver to City the “Deliverables” (if any) described in the attached Exhibit A, incorporated into the Agreement by this reference, within the time frames set forth therein, time being of the essence for this Agreement. The services and/or Deliverables described in Exhibit A shall be referred to herein as the “Required Services.” 1.2 Reductions in Scope of Work. City may independently, or upon request from Contractor/Service Provider, from time to time, reduce the Required Services to be performed by the Contractor/Service Provider under this Agreement. Upon doing so, City and Contractor/Service Provider agree to meet and confer in good faith for the purpose of negotiating a corresponding reduction in the compensation associated with the reduction. 1.3 Additional Services. Subject to compliance with the City’s Charter, codes, policies, procedures and ordinances governing procurement and purchasing authority, City may request Contractor/Service Provider provide additional services related to the Required Services (“Additional Services”). If so, City and Contractor/Service Provider agree to meet and confer in good faith for the purpose of negotiating an amendment to Exhibit A, to add the Additional Services. Unless otherwise agreed, compensation for the Additional Services shall be charged and paid consistent with the rates and terms already provided therein. Once added to Exhibit A, “Additional Services” shall also become “Required Services” for purposes of this Agreement. 1.4 Standard of Care. Contractor/Service Provider expressly warrants and agrees that any and all Required Services hereunder shall be performed in accordance with the highest standard of care exercised by members of the profession currently practicing under similar conditions and in similar locations. 1.5 No Waiver of Standard of Care. Where approval by City is required, it is understood to be conceptual approval only and does not relieve the Contractor/Service Provider of responsibility for complying with all laws, codes, industry standards, and liability for damages caused by negligent acts, errors, omissions, noncompliance with industry standards, or the willful misconduct of the Contractor/Service Provider or its subcontractors. 1.6 Security for Performance. In the event that Exhibit A Section 5 indicates the need for Contractor/Service Provider to provide additional security for performance of its duties under this Agreement, Contractor/Service Provider shall provide such additional security prior to commencement of its Required Services in the form and on the terms prescribed on Exhibit A, or as otherwise prescribed by the City Attorney. 1.7 Compliance with Laws. In its performance of the Required Services, Contractor/Service Provider shall comply with any and all applicable federal, state and local laws, including the Chula Vista Municipal Code. 1.8 Business License. Prior to commencement of work, Contractor/Service Provider shall obtain a business license from City. Page 520 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 3 City of Chula Vista Agreement No.: 2026-276 Service Provider Name: SBCS Corporation Rev. 6.4.2026 1.9 Subcontractors. Prior to commencement of any work, Contractor/Service Provider shall submit for City’s information and approval a list of any and all subcontractors to be used by Contractor/Service Provider in the performance of the Required Services. Contractor/Service Provider agrees to take appropriate measures necessary to ensure that all subcontractors and personnel utilized by the Contractor/Service Provider to complete its obligations under this Agreement comply with all applicable laws, regulations, ordinances, and policies, whether federal, state, or local. In addition, if any subcontractor is expected to fulfill any responsibilities of the Contractor/Service Provider under this Agreement, Contractor/Service Provider shall ensure that each and every subcontractor carries out the Contractor/Service Provider’s responsibilities as set forth in this Agreement. 1.10 Term. This Agreement shall commence on the earlier to occur of the Effective Date or Contractor/Service Provider’s commencement of the Required Services hereunder, and shall terminate, subject to Sections 6.1 and 6.2 of this Agreement, when the Parties have complied with all their obligations hereunder; provided, however, provisions which expressly survive termination shall remain in effect. 2. COMPENSATION 2.1 General. For satisfactory performance of the Required Services, City agrees to compensate Contractor/Service Provider in the amount(s) and on the terms set forth in Exhibit A, Section 4. Standard terms for billing and payment are set forth in this Section 2. 2.2 Detailed Invoicing. Contractor/Service Provider agrees to provide City with a detailed invoice for services performed each month, within thirty (30) days of the end of the month in which the services were performed, unless otherwise specified in Exhibit A. Invoicing shall begin on the first of the month following the Effective Date of the Agreement. All charges must be presented in a line item format with each task separately explained in reasonable detail. Each invoice shall include the current monthly amount being billed, the amount invoiced to date, and the remaining amount available under any approved budget. Contractor/Service Provider must obtain prior written authorization from City for any fees or expenses that exceed the estimated budget. 2.3 Payment to Contractor/Service Provider. Upon receipt of a properly prepared invoice and confirmation that the Required Services detailed in the invoice have been satisfactorily performed, City shall pay Contractor/Service Provider for the invoice amount within thirty (30) days. Payment shall be made in accordance with the terms and conditions set forth in Exhibit A and section 2.4, below. At City’s discretion, invoices not timely submitted may be subject to a penalty of up to five percent (5%) of the amount invoiced. 2.4 Retention Policy. City shall retain ten percent (10%) of the amount due for Required Services detailed on each invoice (the “holdback amount”). Upon City review and determination of Project Completion, the holdback amount will be issued to Contractor/Service Provider. 2.5 Reimbursement of Costs. City may reimburse Contractor/Service Provider’s out-of-pocket costs incurred by Contractor/Service Provider in the performance of the Required Services if negotiated in advance and included in Exhibit A. Unless specifically provided in Exhibit A, Contractor/Service Provider shall be responsible for any and all out-of-pocket costs incurred by Contractor/Service Provider in the performance of the Required Services. 2.6 Exclusions. City shall not be responsible for payment to Contractor/Service Provider for any fees or costs in excess of any agreed upon budget, rate or other maximum amount(s) provided for in Exhibit A. City Page 521 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 4 City of Chula Vista Agreement No.: 2026-276 Service Provider Name: SBCS Corporation Rev. 6.4.2026 shall also not be responsible for any cost: (a) incurred prior to the Effective Date; or (b) arising out of or related to the errors, omissions, negligence or acts of willful misconduct of Contractor/Service Provider, its agents, employees, or subcontractors. 2.7 Payment Not Final Approval. Contractor/Service Provider understands and agrees that payment to the Contractor/Service Provider or reimbursement for any Contractor/Service Provider costs related to the performance of Required Services does not constitute a City final decision regarding whether such payment or cost reimbursement is allowable and eligible for payment under this Agreement, nor does it constitute a waiver of any violation by Contractor/Service Provider of the terms of this Agreement. If City determines that Contractor/Service Provider is not entitled to receive any amount of compensation already paid, City will notify Contractor/Service Provider in writing and Contractor/Service Provider shall promptly return such amount. 3. INSURANCE 3.1 Required Insurance. Contractor/Service Provider must procure and maintain, during the period of performance of Required Services under this Agreement, and for twelve months after completion of Required Services, the policies of insurance described on the attached Exhibit B, incorporated into the Agreem ent by this reference (the “Required Insurance”). The Required Insurance shall also comply with all other terms of this Section. 3.2 Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions relating to the Required Insurance must be disclosed to and approved by City in advance of the commencement of work. 3.3 Standards for Insurers. Required Insurance must be placed with licensed insurers admitted to transact business in the State of California with a current A.M. Best’s rating of A V or better, or, if insurance is placed with a surplus lines insurer, insurer must be listed on the State of California List of Eligible Surplus Lines Insurers (LESLI) with a current A.M. Best’s rating of no less than A X. For Workers’ Compen sation Insurance, insurance issued by the State Compensation Fund is also acceptable. 3.4 Subcontractors. Contractor/Service Provider must include all sub-Contractor/Service Providers/sub- contractors as insureds under its policies and/or furnish separate certificates and endorsements demonstrating separate coverage for those not under its policies. Any separate coverage for sub-Contractor/Service Providers must also comply with the terms of this Agreement. 3.5 Additional Insureds. City, its officers, officials, employees, agents, and volunteers must be named as additional insureds with respect to any policy of general liability, automobile, or pollution insurance specified as required in Exhibit B or as may otherwise be specified by City’s Risk Manager.. The general liability additional insured coverage must be provided in the form of an endorsement to the Contractor/Service Provider’s insurance using ISO CG 2010 (11/85) or its equivalent; such endorsement must not exclude Products/Completed Operations coverage. 3.6 General Liability Coverage to be “Primary.” Contractor/Service Provider’s general liability coverage must be primary insurance as it pertains to the City, its officers, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers is wholly separate from the insurance provided by Contractor/Service Provider and in no way relieves Contractor/Service Provider from its responsibility to provide insurance. Page 522 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 5 City of Chula Vista Agreement No.: 2026-276 Service Provider Name: SBCS Corporation Rev. 6.4.2026 3.7 No Cancellation. No Required Insurance policy may be canceled by either Party during the required insured period under this Agreement, except after thirty days’ prior written notice to the City by certified mail, return receipt requested. Prior to the effective date of any such cancellation Contractor/Service Provider must procure and put into effect equivalent coverage(s). 3.8 Waiver of Subrogation. Contractor/Service Provider’s insurer(s) will provide a Waiver of Subrogation in favor of the City for each Required Insurance policy under this Agreement. In addition, Contractor/Service Provider waives any right it may have or may obtain to subrogation for a claim against City. 3.9 Verification of Coverage. Prior to commencement of any work, Contractor/Service Provider shall furnish City with original certificates of insurance and any amendatory endorsements necessary to demonstrate to City that Contractor/Service Provider has obtained the Required Insurance in compliance with the terms of this Agreement. The words “will endeavor” and “but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents, or representatives” or any similar language must be deleted from all certificates. The required certificates and endorsements should otherwise be on industry standard forms. The City reserves the right to require, at any time, complete, certified copies of all required insurance policies, including endorsements evidencing the coverage required by these specifications. 3.10 Claims Made Policy Requirements. If General Liability, Pollution and/or Asbestos Pollution Liability and/or Errors & Omissions coverage are required and are provided on a claims -made form, the following requirements also apply: a. The “Retro Date” must be shown, and must be before the date of this Agreement or the beginning of the work required by this Agreement. b. Insurance must be maintained, and evidence of insurance must be provided, for at least five (5) years after completion of the work required by this Agreement. c. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a “Retro Date” prior to the effective date of this Agreement, the Contractor/Service Provider must purchase “extended reporting” coverage for a minimum of five (5) years after completion of the work required by this Agreement. d. A copy of the claims reporting requirements must be submitted to the City for review. 3.11 Not a Limitation of Other Obligations. Insurance provisions under this section shall not be construed to limit the Contractor/Service Provider’s obligations under this Agreement, including Indemnity. 3.12 Additional Coverage. To the extent that insurance coverage provided by Contractor/Service Provider maintains higher limits than the minimums appearing in Exhibit B, City requires and shall be entitled to coverage for higher limits maintained. Page 523 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 6 City of Chula Vista Agreement No.: 2026-276 Service Provider Name: SBCS Corporation Rev. 6.4.2026 4. INDEMNIFICATION 4.1. General. To the maximum extent allowed by law, Contractor/Service Provider shall timely and fully protect, defend, reimburse, indemnify and hold harmless City, its elected and appointed officers, agents, employees and volunteers (collectively, “Indemnified Parties”), from and against any and all claims, demands, causes of action, costs, expenses, (including reasonable attorneys’ fees and court costs), liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any mann er arising out of or incident to any alleged acts, omissions, negligence, or willful misconduct of Contractor/Service Provider, its officials, officers, employees, agents, and contractors, arising out of or in connection with the performance of the Required Services, the results of such performance, or this Agreement. This indemnity provision does not include any claims, damages, liability, costs and expenses arising from the sole negligence or willful misconduct of the Indemnified Parties. Also covered is liability arising from, connected with, caused by or claimed to be caused by the active or passive negligent acts or omissions of the Indemnified Parties which may be in combination with the active or passive negligent acts or omissions of the Contractor/Service Provider, its employees, agents or officers, or any third party. 4.2. Modified Indemnity Where Agreement Involves Design Professional Services. Notwithstanding the forgoing, if the services provided under this Agreement are design professional services, as defined by California Civil Code section 2782.8, as may be amended from time to time, the defense and indemnity obligation under Section 1, above, shall be limited to the extent required by California Civil Code section 2782.8. 4.3 Costs of Defense and Award. Included in Contractor/Service Provider’s obligations under this Section 4 is Contractor/Service Provider’s obligation to defend, at Contractor/Service Provider’s own cost, expense and risk, and with counsel approved in writing by City, any and all suits, actions or other legal proceedings that may be brought or instituted against one or more of the Indemnified Parties. Subject to the limitations in this Section 4, Contractor/Service Provider shall pay and satisfy any judgment, award or decree that may be rendered against one or more of the Indemnified Parties for any and all related legal expenses and costs incurred by any of them. 4.4. Contractor/Service Provider’s Obligations Not Limited or Modified. Contractor/Service Provider’s obligations under this Section 4 shall not be limited to insurance proceeds, if any, received by the Indemnified Parties, or by any prior or subsequent declaration by the Contractor/Service Provider. Furthermore, Contractor/Service Provider’s obligations under this Section 4 shall in no way limit, modify or excuse any of Contractor/Service Provider’s other obligations or duties under this Agreement. 4.5. Enforcement Costs. Contractor/Service Provider agrees to pay any and all costs and fees City incurs in enforcing Contractor/Service Provider’s obligations under this Section 4. 4.6 Survival. Contractor/Service Provider’s obligations under this Section 4 shall survive the termination of this Agreement. 5. FINANCIAL INTERESTS OF CONTRACTOR/SERVICE PROVIDER. 5.1 Form 700 Filing. The California Political Reform Act and the Chula Vista Conflict of Interest Code require certain government officials and Contractor/Service Providers performing work for government agencies to publicly disclose certain of their personal assets and income using a Statement of Economic Interests form (Form 700). In order to assure compliance with these requirements, Contractor/Service Page 524 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 7 City of Chula Vista Agreement No.: 2026-276 Service Provider Name: SBCS Corporation Rev. 6.4.2026 Provider shall comply with the disclosure requirements identified in the attached Exhibit C, incorporated into the Agreement by this reference. 5.2 Disclosures; Prohibited Interests. Independent of whether Contractor/Service Provider is required to file a Form 700, Contractor/Service Provider warrants and represents that it has disclosed to City any economic interests held by Contractor/Service Provider, or its employees or subcontractors who will be performing the Required Services, in any real property or project which is the subject of this Agreement. Contractor/Service Provider warrants and represents that it has not employed or retained any company or person, other than a bona fide employee or approved subcontractor working solely for Contractor/Service Provider, to solicit or secure this Agreement. Further, Contractor/Service Provider warrants and represents that it has not paid or agreed to pay any company or person, other than a bona fide employee or approved subcontractor working solely for Contractor/Service Provider, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. Contractor/Service Provider further warrants and represents that no officer or employee of City, has any interest, whether contractual, non-contractual, financial or otherwise, in this transaction, the proceeds hereof, or in the business of Contractor/Service Provider or Contractor/Service Provider’s subcontractors. Contractor/Service Provider further agrees to notify City in the event any such interest is discovered whether or not such interest is prohibited by law or this Agreement. For breach or violation of any of these warranties, City shall have the right to rescind this Agreement without liability. 5.3 Levine Act. California Government Code section 84308, commonly known as the Levine Act, prohibits public agency officers from participating in any action related to a contract if such officer receives political contributions totaling more than $500 within the previous twelve months, and for twelve months following the date a final decision concerning the contract has been made, from the person or company awarded the contract. The Levine Act also requires disclosure of such contribution by a party to be awarded a specific contract. In order to assure compliance with these requirements, Contractor/Service Provider shall comply with the disclosure requirements identified in the attached Exhibit D, incorporated into the Agreement by this reference. 6. REMEDIES 6.1 Termination for Cause. If for any reason whatsoever Contractor/Service Provider shall fail to perform the Required Services under this Agreement, in a proper or timely manner, or if Contractor/Service Provider shall violate any of the other covenants, agreements or conditions of this Agreement (each a “Default”), in addition to any and all other rights and remedies City may have under this Agreement, at law or in equity, City shall have the right to terminate this Agreement by giving five (5) days written notice to Contractor/Service Provider. Such notice shall identify the Default and the Agreement termination date. If Contractor/Service Provider notifies City of its intent to cure such Default prior to City’s specified termination date, and City agrees that the specified Default is capable of being cured, City may grant Contractor/Service Provider up to ten (10) additional days after the designated termination date to effectuate such cure. In the event of a termination under this Section 6.1, Contractor/Service Provider shall immediately provide City any and all ”Work Product” (defined in Section 7 below) prepared by Contractor/Service Provider as part of the Required Services. Such Work Product shall be City’s sole and exclusive propert y as provided in Section 7 hereof. Contractor/Service Provider may be entitled to compensation for work satisfactorily performed prior to Contractor/Service Provider’s receipt of the Default notice; provided, however, in no event shall such compensation exceed the amount that would have been payable under this Agreement for such work, and any such compensation shall be reduced by any costs incurred or projected to be incurred by City as a result of the Default. Page 525 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 8 City of Chula Vista Agreement No.: 2026-276 Service Provider Name: SBCS Corporation Rev. 6.4.2026 6.2 Termination or Suspension for Convenience of City. City may suspend or terminate this Agreement, or any portion of the Required Services, at any time and for any reason, with or without cause, by giving specific written notice to Contractor/Service Provider of such termination or suspension at least fifteen (15) days prior to the effective date thereof. Upon receipt of such notice, Contractor/Service Provider shall immediately cease all work under the Agreement and promptly deliver all “Work Product” (defined in Section 7 below) to City. Such Work Product shall be City's sole and exclusive property as provided in Section 7 hereof. Contractor/Service Provider shall be entitled to receive just and equitable compensation for this Work Product in an amount equal to the amount due and payable under this Agreement for work satisfactorily performed as of the date of the termination/suspension notice plus any additional remaining Required Services requested or approved by City in advance that would maximize City’s value under the Agreement. 6.3 Waiver of Claims. In the event City terminates the Agreement in accordance with the terms of this Section, Contractor/Service Provider hereby expressly waives any and all claims for damages or compensation as a result of such termination except as expressly provided in this Section 6. 6.4 Administrative Claims Requirements and Procedures. No suit or arbitration shall be brought arising out of this Agreement against City unless a claim has first been presented in writing and filed with City and acted upon by City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may be amended, the provisions of which, including such policies and procedures used by City in the implementation of same, are incorporated herein by this reference. Upon request by City, Contractor/Service Provider shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. 6.5 Governing Law/Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in San Diego County, State of California. Contractor/Service Provider hereby waives any right to remove any action from San Diego County as may otherwise be permitted by California Code of Civil Procedure section 394. 6.6 Service of Process. Contractor/Service Provider agrees that it is subject to personal jurisdiction in California. If Contractor/Service Provider is a foreign corporation, limited liability company, or partnership that is not registered with the California Secretary of State, Contractor/Service Provider irrevocably consents to service of process on Contractor/Service Provider by first class mail directed to the individual and address listed under “For Legal Notice,” in section 1.B. of Exhibit A to this Agreement, and that such service shall be effective five days after mailing. 7. OWNERSHIP AND USE OF WORK PRODUCT All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced in whole or in part under this Agreement in connection with the performance of the Required Services (collectivel y “Work Product”) shall be the sole and exclusive property of City. No such Work Product shall be subject to private use, copyrights or patent rights by Contractor/Service Provider in the United States or in any other country without the express, prior written consent of City. City shall have unrestricted authority to publish, disclose, distribute, and otherwise use, copyright or patent, in whole or in part, any such Work Product, without requiring any permission of Contractor/Service Provider, except as may be limited by the provisions of the Public Records Act or expressly prohibited by other applicable laws. With respect to computer files containing data generated as Work Product, Contractor/Service Provider shall make available to City, upon reasonable written request by City, the necessary functional computer software and hardware for purposes of accessing, compiling, transferring and printing computer files. Page 526 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 9 City of Chula Vista Agreement No.: 2026-276 Service Provider Name: SBCS Corporation Rev. 6.4.2026 8. GENERAL PROVISIONS 8.1 Amendment. This Agreement may be amended, but only in writing signed by both Parties. 8.2 Assignment. City would not have entered into this Agreement but for Contractor/Service Provider’s unique qualifications and traits. Contractor/Service Provider shall not assign any of its rights or responsibilities under this Agreement, nor any part hereof, without City’s prior written consent, which City may grant, condition or deny in its sole discretion. 8.3 Authority. The person(s) executing this Agreement for Contractor/Service Provider warrants and represents that they have the authority to execute same on behalf of Contractor/Service Provider and to bind Contractor/Service Provider to its obligations hereunder without any further action or direction from Contractor/Service Provider or any board, principle or officer thereof. 8.4 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which shall constitute one Agreement after each Party has signed such a counterpart. 8.5 Entire Agreement. This Agreement together with all exhibits attached hereto and other agreements expressly referred to herein, constitutes the entire Agreement between the Parties with respect to the subject matter contained herein. All exhibits referenced herein shall be attached hereto and are incorporated herein by reference. All prior or contemporaneous agreements, understandings, representations, warranties and statements, oral or written, are superseded. 8.6 Record Retention. During the course of the Agreement and for three (3) years following completion of the Required Services, Contractor/Service Provider agrees to maintain, intact and readily accessible, all data, documents, reports, records, contracts, and supporting materials relating to the performance of the Agreement, including accounting for costs and expenses charged to City, including such records in the possession of sub-contractors/sub-Contractor/Service Providers. 8.7 Further Assurances. The Parties agree to perform such further acts and to execute and deliver such additional documents and instruments as may be reasonably required in order to carry out the provisions of this Agreement and the intentions of the Parties. 8.8 Independent Contractor. Contractor/Service Provider is and shall at all times remain as to City a wholly independent contractor. Neither City nor any of its officers, employees, agents or volunteers shall have control over the conduct of Contractor/Service Provider or any of Contractor/Service Provider’s officers, employees, or agents (“Contractor/Service Provider Related Individuals”), except as set forth in this Agreement. No Contractor/Service Provider Related Individuals shall be deemed employees of City, and none of them shall be entitled to any benefits to which City employees are entitled, including but not limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or other leave benefits. Furthermore, City will not withhold state or federal income tax, social security tax or any other payroll tax with respect to any Contractor/Service Provider Related Individuals; instead, Contractor/Service Provider shall be solely responsible for the payment of same and shall hold the City harmless with respect to same. Contractor/Service Provider shall not at any time or in any manner represent that it or any of its Contractor/Service Provider Related Individuals are employees or agents of City. Contractor/Service Provider shall not incur or have the power to incur any debt, obligati on or liability whatsoever against City, or bind City in any manner. Page 527 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 10 City of Chula Vista Agreement No.: 2026-276 Service Provider Name: SBCS Corporation Rev. 6.4.2026 8.9 Notices. All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any Party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such Party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified in this Agreement at the places of business for each of the designated Parties as indicated in Exhibit A, or otherwise provided in writing. 8.10 Electronic Signatures. Each Party agrees that the electronic signatures, whether digital or encrypted, of the Parties included in this Agreement are intended to authenticate this writing and to have the same force and effect as manual signatures. Electronic Signature means any electronic sound, symbol, or process attached to or logically associated with a record and executed and adopted by a Party with the intent to sign such record, including facsimile or email electronic signatures, pursuant to the California Uniform Electronic Transactions Act (Cal. Civ. Code §§ 1633.1 to 1633.17) as amended from time to time. (End of page. Next page is signature page.) Page 528 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 11 City of Chula Vista Agreement No.: 2026-276 Service Provider Name: SBCS Corporation Rev. 6.4.2026 SIGNATURE PAGE CONTRACTOR/SERVICE PROVIDER SERVICES AGREEMENT IN WITNESS WHEREOF, by executing this Agreement where indicated below, City and Contractor/Service Provider agree that they have read and understood all terms and conditions of the Agreement, that they fully agree and consent to bound by same, and that they are freely entering into this Agreement as of the Effective Date. SBCS CORPORATION APPROVED AS TO FORM BY: _______________________________ Marco A. Verdugo City Attorney Page 529 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 12 City of Chula Vista Agreement No.: 2026-276 Service Provider Name: SBCS Corporation Rev. 6.4.2026 EXHIBIT A SCOPE OF WORK AND PAYMENT TERMS 1. Contact People for Contract Administration and Legal Notice A. City Contract Administration: Chula Vista Police Department Jonathan Alegre, Police Administrative Services Administrator 315 Fourth Avenue, Chula Vista, CA 91910 (619) 476-2570 jalegre@chulavistapdca.gov For Legal Notice Copy to: City of Chula Vista City Attorney 276 Fourth Avenue, Chula Vista, CA 91910 619-691-5037 CityAttorney@chulavistaca.gov B. Contractor/Service Provider Contract Administration: SBCS Corporation 430 F Street, Chula Vista, CA 91910 (619) 420-3620 klembo@csbcs.org For Legal Notice Copy to: [same as above] 2. Required Services A. General Description: Contractor/Service Provider will provide diversion, prevention and intervention services to support Proposition 64 Public Health and Safety Cohort 4 Grant Program. B. Detailed Description: SBCS Corporation will allocate one full-time Youth and Family Development Associate (YFDA) to provide youth development, prevention & intervention services to support the Proposition 64 Public Health and Safety Grant Program. Utilizing evidence-based practices, SBCS will not only educate but facilitate individual and group services, and provide wrap-around support for both youth and their families. Currently operating as a Community Assessment Team (CAT) Program, SBCS will engage, educate, and prevent youth cannabis use and thwart a rise in marijuana-related crimes such as driving under the influence. Together, SBCS and Chula Vista Police Department (CVPD) will act as a resource for families with issues or who are at-risk of abuse related to marijuana consumption and will work with the legal cannabis industry to ensure it is complying with youth prevention efforts. SBCS will work closely with CVPD to provide education, prevention and intervention services to Chula Vista elementary, middle and high school youth (ages 6-18) and parents as an enhancement to the CAT program. Page 530 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 13 City of Chula Vista Agreement No.: 2026-276 Service Provider Name: SBCS Corporation Rev. 6.4.2026 Project activities that support the goals and objectives of the Proposition 64 Public Health and Safety Grant Program include, but not limited to:  Complete risk assessment & create individualized service plan for all youth within 30 days of program enrollment.  Facilitate weekly evidence-based psycho-educational & therapeutic youth groups for program participants.  Facility pro-social community service activities for youth which include marijuana prevention and education efforts within the community at least once per month.  Conduct at least one parent education presentation per quarter  Conduct at least one youth education presentation per quarter  Conduct at least one community education presentation per quarter  Conduct at least one social media education post per month 3. Term: In accordance with Section 1.10 of this Agreement, the term of this Agreement shall begi n July 1, 2026 and end on June 30, 2031 for completion of all Required Services. 4. Compensation: A. Form of Compensation ☒ Time and Materials. For performance of the Required Services by Contractor/Service Provider as identified in Section 2.B., above, City shall pay Contractor/Service Provider for the productive hours of time spent by Contractor/Service Provider in the performance of the Required Services. B. Reimbursement of Costs ☒ None, the compensation includes all costs Notwithstanding the foregoing, the maximum amount to be paid to the Contractor/Service Provider for services performed through June 30, 2031 shall not exceed $710,000. 5. Special Provisions: ☐ Permitted Sub-Contractor/Service Providers: None ☐ Security for Performance: None ☐ Notwithstanding the completion date set forth in Section 3 above, City has option to extend this Agreement for Insert Number of Terms additional terms, defined as a one-year increment or Enter a Specific Date. if applicable. The City Manager or Director of Finance/Treasurer shall be authorized to exercise the extensions on behalf of the City. If the City exercises an option to extend, each extension shall be on the same terms and conditions contained herein, provided that the amounts specified in Section 4 above may be increased by up to Insert Percentage of Increase or Actual Dollar Amount for each extension. The City shall give written notice to Contractor/Service Provider of the City’s election to exercise the extension via the Notice of Exercise of Option to Extend document. Such notice shall be provided at least 30 days prior to the expiration of the term. Page 531 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 14 City of Chula Vista Agreement No.: 2026-276 Service Provider Name: SBCS Corporation Rev. 6.4.2026 ☒ None Page 532 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 15 City of Chula Vista Agreement No.: 2026-276 Service Provider Name: SBCS Corporation Rev. 6.4.2026 EXHIBIT B INSURANCE REQUIREMENTS Contractor/Service Provider shall adhere to all terms and conditions of Section 3 of the Agreement and agrees to provide the following types and minimum amounts of insurance, as indicated by checking the applicable boxes (x). Type of Insurance Minimum Amount Form ☒ General Liability: Including products and completed operations, personal and advertising injury $2,000,000 per occurrence for bodily injury, personal injury (including death), and property damage. If Commercial General Liability insurance with a general aggregate limit is used, either the general aggregate limit must apply separately to this Agreement or the general aggregate limit must be twice the required occurrence limit Additional Insured Endorsement or Blanket AI Endorsement for City* Waiver of Recovery Endorsement Insurance Services Office Form CG 00 01 *Must be primary and must not exclude Products/Completed Operations ☒ Automobile Liability $1,000,000 per accident for bodily injury, including death, and property damage Insurance Services Office Form CA 00 01 Code 1-Any Auto Code 8-Hired Code 9-Non Owned ☒ Workers’ Compensation Employer’s Liability $1,000,000 each accident $1,000,000 disease policy limit $1,000,000 disease each employee Waiver of Recovery Endorsement Other Negotiated Insurance Terms: None. Page 533 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 16 City of Chula Vista Agreement No.: 2026-276 Service Provider Name: SBCS Corporation Rev. 6.4.2026 EXHIBIT C CONTRACTOR/SERVICE PROVIDER CONFLICT OF INTEREST DESIGNATION The Political Reform Act1 and the Chula Vista Conflict of Interest Code2 (“Code”) require designated state and local government officials, including some Contractor/Service Providers, to make certain public disclosures using a Statement of Economic Interests form (Form 700). Once filed, a Form 700 is a public document, accessible to any member of the public. In addition, Contractor/Service Providers designated to file the Form 700 are also required to comply with certain ethics training requirements.3 ☒ A. Contractor/Service Provider will not exert influence over the official or contracting decisions of City and is therefore EXCLUDED4 from disclosure. ☐ B. Contractor/Service Provider WILL exert influence over the official or contracting decisions of City and their disclosure designation is as follows: APPLICABLE DESIGNATIONS FOR INDIVIDUAL(S) ASSIGNED TO PROVIDE SERVICES (Category descriptions available at www.chulavistaca.gov/departments/city-clerk/conflict-of-interest-code.) Name Email Address Applicable Designation ☐ A. Full Disclosure ☐ B. Limited Disclosure (select one or more of the categories under which the Contractor shall file): ☐ 1. ☐ 2. ☐ 3. ☐ 4. ☐ 5. ☐ 6. ☐ 7. Justification: ☒ C. Excluded from Disclosure 1. Required Filers Each individual who will be performing services for the City pursuant to the Agreement and who meets the definition of “Contractor/Service Provider,” pursuant to FPPC Regulation 18700.3, must file a Form 700. 2. Required Filing Deadlines Each initial Form 700 required under this Agreement shall be filed with the Office of the City Clerk via the City's online filing system, NetFile, within 30 days of the approval of the Agreement. Additional Form 700 filings will b e required annually on April 1 during the term of the Agreement, and within 30 days of the termination of the Agreement. 3. Filing Designation The City Department Director will designate each individual who will be providing services to the City pursuant to the Agreement as full disclosure, limited disclosure, or excluded from disclosure, based on an analysis of the services the Contractor/Service Provider will provide. Notwithstanding this designation or anything in the Agreement, the Contractor/Service Provider is ultimately responsible for complying with FPPC regulations and filing requirements. If you have any questions regarding filing requirements, please do not hesitate to contact the City Clerk at (619)691-5041, or the FPPC at 1-866-ASK-FPPC, or (866) 275-3772 *2. Pursuant to the duly adopted City of Chula Vista Conflict of Interest Code, this document shall serve as the written determination of the Contractor’s requirement to comply with the disclosure requirements set forth in the Code. Completed by: Jonathan Alegre 1 Cal. Gov. Code §§81000 et seq.; FPPC Regs. 18700.3 and 18704. Chula Vista Municipal Code §§2.02.010-2.02.040. Cal. Gov. Code §§53234, et seq. 4 CA FPPC Adv. A-15-147 (Chadwick) (2015); Davis v. Fresno Unified School District (2015) 237 Cal.App.4th 261; FPPC Reg. 18700.3 (Consultant defined as an “individual” who participates in making a governmental decision; “individual” does not incl ude corporation or limited liability company). Page 534 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 17 City of Chula Vista Agreement No.: 2026-276 Service Provider Name: SBCS Corporation Rev. 6.4.2026 EXHIBIT D CONSULTANT LEVINE ACT DISCLOSURE California Government Code section 84308, commonly referred to as the Levine Act, prohibits any City of Chula Vista Officer5 (“Officer”) from taking part in decisions related to a contract if the Officer received a political contribution totaling more than $500 within the previous twelve months, and for twelve months following the date a final decision concerning the contract has been made, from the person or company awarded the contract. The Levine Act also requires disclosure of such contribution by a party to be awarded a specific contract. The Levine Act does not apply to competitively bid, labor, or personal employment contracts; contracts valued at under $50,000; contracts where no party receives financial compensation; or contracts between two or more agencies. ☐ A. The Levine Act (Govt. Code §84308) DOES NOT apply to this Agreement. ☒ B. The Levine Act (Govt. Code §84308) does apply to this Agreement and the required disclosure is as follows: Current Officers can be located on the City of Chula Vista’s websites below:  Mayor & Council - https://www.chulavistaca.gov/departments/mayor-council  City Attorney - https://www.chulavistaca.gov/departments/city-attorney/about-us  Planning Commissioners – www.chulavistaca.gov/pc  Candidate for Elected Office – www.chulavistaca.gov/elections 1. Have you or your company, or any agent on behalf of you or your company, made political contributions totaling more than $500 to any Officer in the 12 months preceding the date you submitted your proposal, the date you completed this form, or the anticipated date of any Council action related to this Agreement? YES: ☐ If yes, which Officer(s): Click or tap here to enter text. NO: ☒☐ 2. Do you or your company, or any agent on behalf of you or your company, anticipate or plan to make political contributions totaling more than $500 to any Officer in the 12 months following the finalization of this Agreement or any Council action related to this Agreement? YES: ☐ If yes, which Officer(s): Click or tap here to enter text. NO: ☒ Answering yes to either question above may not preclude the City of Chula Vista from entering into or taking any subsequent action related to the Agreement. However, it may preclude the identified Officer(s) from participating in any actions related to the Agreement. 5 “Officer” means any elected or appointed officer of an agency, any alternate to an elected or appointed officer of an agency, and any candidate for elective office in an agency. GC § 84308 Page 535 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 1 City of Chula Vista Agreement No.: 2026-277 Service Provider Name: San Diego Association of Governments Rev. 6.4.2026 CITY OF CHULA VISTA CONTRACTOR/SERVICE PROVIDER SERVICES AGREEMENT WITH SAN DIEGO ASSOCIATION OF GOVERNMENTS TO PROVIDE PROGRAM EVALUATION SERVICES FOR THE PROPOSITION 64 PUBLIC HEALTH AND SAFETY COHORT 4 GRANT PROGRAM This Agreement is entered into effective as of July 1, 2026 by and between the City of Chula Vista, a chartered municipal corporation (“City”) and San Diego Association of Governments, A California Corporation Contractor/Service Provider”) (collectively, the “Parties” and, individually, a “Party”) with reference to the following facts: RECITALS WHEREAS, the San Diego Association of Governments (SANDAG) serves as the forum for regional decision-making for the San Diego region, which is governed by a Board of Directors of mayors, councilmembers, and county supervisors for each of the region’s 19 local governments; and WHEREAS, the Applied Research Division (ARD) of SANDAG will work with the City to support the goals and objectives outlined in the Proposition 64 Public Health and Safety Grant Program; and WHEREAS, Contractor/Service Provider warrants and represents that it is experienced and staffed in a manner such that it can deliver the services required of Contractor/Service Provider to City in accordance with the time frames and the terms and conditions of this Agreement. End of Recitals. Next Page Starts Obligatory Provisions.] Page 536 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 2 City of Chula Vista Agreement No.: 2026-277 Service Provider Name: San Diego Association of Governments Rev. 6.4.2026 OBLIGATORY PROVISIONS NOW, THEREFORE, in consideration of the above recitals, the covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which the Parties hereby acknowledge, City and Contractor/Service Provider hereby agree as follows: 1. SERVICES 1.1 Required Services. Contractor/Service Provider agrees to perform the services, and deliver to City the Deliverables” (if any) described in the attached Exhibit A, incorporated into the Agreement by this reference, within the time frames set forth therein, time being of the essence for this Agreement. The services and/or Deliverables described in Exhibit A shall be referred to herein as the “Required Services.” 1.2 Reductions in Scope of Work. City may independently, or upon request from Contractor/Service Provider, from time to time, reduce the Required Services to be performed by the Contractor/Service Provider under this Agreement. Upon doing so, City and Contractor/Service Provider agree to meet and confer in good faith for the purpose of negotiating a corresponding reduction in the compensation associated with the reduction. 1.3 Additional Services. Subject to compliance with the City’s Charter, codes, policies, procedures and ordinances governing procurement and purchasing authority, City may request Contractor/Service Provider provide additional services related to the Required Services (“Additional Services”). If so, City and Contractor/Service Provider agree to meet and confer in good faith for the purpose of negotiating an amendment to Exhibit A, to add the Additional Services. Unless otherwise agreed, compensation for the Additional Services shall be charged and paid consistent with the rates and terms already provided therein. Once added to Exhibit A, “Additional Services” shall also become “Required Services” for purposes of this Agreement. 1.4 Standard of Care. Contractor/Service Provider expressly warrants and agrees that any and all Required Services hereunder shall be performed in accordance with the highest standard of care exercised by members of the profession currently practicing under similar conditions and in similar locations. 1.5 No Waiver of Standard of Care. Where approval by City is required, it is understood to be conceptual approval only and does not relieve the Contractor/Service Provider of responsibility for complying with all laws, codes, industry standards, and liability for damages caused by negligent acts, errors, omissions, noncompliance with industry standards, or the willful misconduct of the Contractor/Service Provider or its subcontractors. 1.6 Security for Performance. In the event that Exhibit A Section 5 indicates the need for Contractor/Service Provider to provide additional security for performance of its duties under this Agreement, Contractor/Service Provider shall provide such additional security prior to commencement of its Required Services in the form and on the terms prescribed on Exhibit A, or as otherwise prescribed by the City Attorney. 1.7 Compliance with Laws. In its performance of the Required Services, Contractor/Service Provider shall comply with any and all applicable federal, state and local laws, including the Chula Vista Municipal Code. Page 537 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 3 City of Chula Vista Agreement No.: 2026-277 Service Provider Name: San Diego Association of Governments Rev. 6.4.2026 1.8 Business License. Prior to commencement of work, Contractor/Service Provider shall obtain a business license from City. 1.9 Subcontractors. Prior to commencement of any work, Contractor/Service Provider shall submit for City’s information and approval a list of any and all subcontractors to be used by Contractor/Service Provider in the performance of the Required Services. Contractor/Service Provider agrees to take appropriate measures necessary to ensure that all subcontractors and personnel utilized by the Contractor/Service Provider to complete its obligations under this Agreement comply with all applicable laws, regulations, ordinances, and policies, whether federal, state, or local. In addition, if any subcontractor is expected to fulfill any responsibilities of the Contractor/Service Provider under this Agreement, Contractor/Service Provider shall ensure that each and every subcontractor carries out the Contractor/Service Provider’s responsibilities as set forth in this Agreement. 1.10 Term. This Agreement shall commence on the earlier to occur of the Effective Date or Contractor/Service Provider’s commencement of the Required Services hereunder, and shall terminate, subject to Sections 6.1 and 6.2 of this Agreement, when the Parties have complied with all their obligations hereunder; provided, however, provisions which expressly survive termination shall remain in effect. 2. COMPENSATION 2.1 General. For satisfactory performance of the Required Services, City agrees to compensate Contractor/Service Provider in the amount(s) and on the terms set forth in Exhibit A, Section 4. Standard terms for billing and payment are set forth in this Section 2. 2.2 Detailed Invoicing. Contractor/Service Provider agrees to provide City with a detailed invoice for services performed each month, within thirty (30) days of the end of the month in which the services were performed, unless otherwise specified in Exhibit A. Invoicing shall begin on the first of the month following the Effective Date of the Agreement. All charges must be presented in a line item format with each task separately explained in reasonable detail. Each invoice shall include the current monthly amount being billed, the amount invoiced to date, and the remaining amount available under any approved budget. Contractor/Service Provider must obtain prior written authorization from City for any fees or expenses that exceed the estimated budget. 2.3 Payment to Contractor/Service Provider. Upon receipt of a properly prepared invoice and confirmation that the Required Services detailed in the invoice have been satisfactorily performed, City shall pay Contractor/Service Provider for the invoice amount within thirty (30) days. Payment shall be made in accordance with the terms and conditions set forth in Exhibit A and section 2.4, below. At City’s discretion, invoices not timely submitted may be subject to a penalty of up to five percent (5%) of the amount invoiced. 2.4 Retention Policy. City shall retain ten percent (10%) of the amount due for Required Services detailed on each invoice (the “holdback amount”). Upon City review and determination of Project Completion, the holdback amount will be issued to Contractor/Service Provider. 2.5 Reimbursement of Costs. City may reimburse Contractor/Service Provider’s out-of-pocket costs incurred by Contractor/Service Provider in the performance of the Required Services if negotiated in advance and included in Exhibit A. Unless specifically provided in Exhibit A, Contractor/Service Provider shall be responsible for any and all out-of-pocket costs incurred by Contractor/Service Provider in the performance of the Required Services. Page 538 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 4 City of Chula Vista Agreement No.: 2026-277 Service Provider Name: San Diego Association of Governments Rev. 6.4.2026 2.6 Exclusions. City shall not be responsible for payment to Contractor/Service Provider for any fees or costs in excess of any agreed upon budget, rate or other maximum amount(s) provided for in Exhibit A. City shall also not be responsible for any cost: (a) incurred prior to the Effective Date; or (b) arising out of or related to the errors, omissions, negligence or acts of willful misconduct of Contractor/Service Provider, its agents, employees, or subcontractors. 2.7 Payment Not Final Approval. Contractor/Service Provider understands and agrees that payment to the Contractor/Service Provider or reimbursement for any Contractor/Service Provider costs related to the performance of Required Services does not constitute a City final decision regarding whether such payment or cost reimbursement is allowable and eligible for payment under this Agreement, nor does it constitute a waiver of any violation by Contractor/Service Provider of the terms of this Agreement. If City determines that Contractor/Service Provider is not entitled to receive any amount of compensation already paid, City will notify Contractor/Service Provider in writing and Contractor/Service Provider shall promptly return such amount. 3. INSURANCE 3.1 Required Insurance. Contractor/Service Provider must procure and maintain, during the period of performance of Required Services under this Agreement, and for twelve months after completion of Required Services, the policies of insurance described on the attached Exhibit B, incorporated into the Agreement by this reference (the “Required Insurance”). The Required Insurance shall also comply with all other terms of this Section. 3.2 Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions relating to the Required Insurance must be disclosed to and approved by City in advance of the commencement of work. 3.3 Standards for Insurers. Required Insurance must be placed with licensed insurers admitted to transact business in the State of California with a current A.M. Best’s rating of A V or better, or, if insurance is placed with a surplus lines insurer, insurer must be listed on the State of California List of Eligible Surplus Lines Insurers (LESLI) with a current A.M. Best’s rating of no less than A X. For Workers’ Compensation Insurance, insurance issued by the State Compensation Fund is also acceptable. 3.4 Subcontractors. Contractor/Service Provider must include all sub-Contractor/Service Providers/sub- contractors as insureds under its policies and/or furnish separate certificates and endorsements demonstrating separate coverage for those not under its policies. Any separate coverage for sub-Contractor/Service Providers must also comply with the terms of this Agreement. 3.5 Additional Insureds. City, its officers, officials, employees, agents, and volunteers must be named as additional insureds with respect to any policy of general liability, automobile, or pollution insurance specified as required in Exhibit B or as may otherwise be specified by City’s Risk Manager.. The general liability additional insured coverage must be provided in the form of an endorsement to the Contractor/Service Provider’s insurance using ISO CG 2010 (11/85) or its equivalent; such endorsement must not exclude Products/Completed Operations coverage. 3.6 General Liability Coverage to be “Primary.” Contractor/Service Provider’s general liability coverage must be primary insurance as it pertains to the City, its officers, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers is wholly separate from the insurance provided by Contractor/Service Provider and in no way relieves Contractor/Service Provider from its responsibility to provide insurance. Page 539 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 5 City of Chula Vista Agreement No.: 2026-277 Service Provider Name: San Diego Association of Governments Rev. 6.4.2026 3.7 No Cancellation. No Required Insurance policy may be canceled by either Party during the required insured period under this Agreement, except after thirty days’ prior written notice to the City by certified mail, return receipt requested. Prior to the effective date of any such cancellation Contractor/Service Provider must procure and put into effect equivalent coverage(s). 3.8 Waiver of Subrogation. Contractor/Service Provider’s insurer(s) will provide a Waiver of Subrogation in favor of the City for each Required Insurance policy under this Agreement. In addition, Contractor/Service Provider waives any right it may have or may obtain to subrogation for a claim against City. 3.9 Verification of Coverage. Prior to commencement of any work, Contractor/Service Provider shall furnish City with original certificates of insurance and any amendatory endorsements necessary to demonstrate to City that Contractor/Service Provider has obtained the Required Insurance in compliance with the terms of this Agreement. The words “will endeavor” and “but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents, or representatives” or any similar language must be deleted from all certificates. The required certificates and endorsements should otherwise be on industry standard forms. The City reserves the right to require, at any time, complete, certified copies of all required insurance policies, including endorsements evidencing the coverage required by these specifications. 3.10 Claims Made Policy Requirements. If General Liability, Pollution and/or Asbestos Pollution Liability and/or Errors & Omissions coverage are required and are provided on a claims-made form, the following requirements also apply: a. The “Retro Date” must be shown, and must be before the date of this Agreement or the beginning of the work required by this Agreement. b. Insurance must be maintained, and evidence of insurance must be provided, for at least five (5) years after completion of the work required by this Agreement. c. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a “Retro Date” prior to the effective date of this Agreement, the Contractor/Service Provider must purchase “extended reporting” coverage for a minimum of five (5) years after completion of the work required by this Agreement. d. A copy of the claims reporting requirements must be submitted to the City for review. 3.11 Not a Limitation of Other Obligations. Insurance provisions under this section shall not be construed to limit the Contractor/Service Provider’s obligations under this Agreement, including Indemnity. 3.12 Additional Coverage. To the extent that insurance coverage provided by Contractor/Service Provider maintains higher limits than the minimums appearing in Exhibit B, City requires and shall be entitled to coverage for higher limits maintained. Page 540 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 6 City of Chula Vista Agreement No.: 2026-277 Service Provider Name: San Diego Association of Governments Rev. 6.4.2026 4. INDEMNIFICATION 4.1. General. To the maximum extent allowed by law, Contractor/Service Provider shall timely and fully protect, defend, reimburse, indemnify and hold harmless City, its elected and appointed officers, agents, employees and volunteers (collectively, “Indemnified Parties”), from and against any and all claims, demands, causes of action, costs, expenses, (including reasonable attorneys’ fees and court costs), liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any alleged acts, omissions, negligence, or willful misconduct of Contractor/Service Provider, its officials, officers, employees, agents, and contractors, arising out of or in connection with the performance of the Required Services, the results of such performance, or this Agreement. This indemnity provision does not include any claims, damages, liability, costs and expenses arising from the sole negligence or willful misconduct of the Indemnified Parties. Also covered is liability arising from, connected with, caused by or claimed to be caused by the active or passive negligent acts or omissions of the Indemnified Parties which may be in combination with the active or passive negligent acts or omissions of the Contractor/Service Provider, its employees, agents or officers, or any third party. 4.2. Modified Indemnity Where Agreement Involves Design Professional Services. Notwithstanding the forgoing, if the services provided under this Agreement are design professional services, as defined by California Civil Code section 2782.8, as may be amended from time to time, the defense and indemnity obligation under Section 1, above, shall be limited to the extent required by California Civil Code section 2782.8. 4.3 Costs of Defense and Award. Included in Contractor/Service Provider’s obligations under this Section 4 is Contractor/Service Provider’s obligation to defend, at Contractor/Service Provider’s own cost, expense and risk, and with counsel approved in writing by City, any and all suits, actions or other legal proceedings that may be brought or instituted against one or more of the Indemnified Parties. Subject to the limitations in this Section 4, Contractor/Service Provider shall pay and satisfy any judgment, award or decree that may be rendered against one or more of the Indemnified Parties for any and all related legal expenses and costs incurred by any of them. 4.4. Contractor/Service Provider’s Obligations Not Limited or Modified. Contractor/Service Provider’s obligations under this Section 4 shall not be limited to insurance proceeds, if any, received by the Indemnified Parties, or by any prior or subsequent declaration by the Contractor/Service Provider. Furthermore, Contractor/Service Provider’s obligations under this Section 4 shall in no way limit, modify or excuse any of Contractor/Service Provider’s other obligations or duties under this Agreement. 4.5. Enforcement Costs. Contractor/Service Provider agrees to pay any and all costs and fees City incurs in enforcing Contractor/Service Provider’s obligations under this Section 4. 4.6 Survival. Contractor/Service Provider’s obligations under this Section 4 shall survive the termination of this Agreement. 5. FINANCIAL INTERESTS OF CONTRACTOR/SERVICE PROVIDER. 5.1 Form 700 Filing. The California Political Reform Act and the Chula Vista Conflict of Interest Code require certain government officials and Contractor/Service Providers performing work for government agencies to publicly disclose certain of their personal assets and income using a Statement of Economic Interests form (Form 700). In order to assure compliance with these requirements, Contractor/Service Page 541 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 7 City of Chula Vista Agreement No.: 2026-277 Service Provider Name: San Diego Association of Governments Rev. 6.4.2026 Provider shall comply with the disclosure requirements identified in the attached Exhibit C, incorporated into the Agreement by this reference. 5.2 Disclosures; Prohibited Interests. Independent of whether Contractor/Service Provider is required to file a Form 700, Contractor/Service Provider warrants and represents that it has disclosed to City any economic interests held by Contractor/Service Provider, or its employees or subcontractors who will be performing the Required Services, in any real property or project which is the subject of this Agreement. Contractor/Service Provider warrants and represents that it has not employed or retained any company or person, other than a bona fide employee or approved subcontractor working solely for Contractor/Service Provider, to solicit or secure this Agreement. Further, Contractor/Service Provider warrants and represents that it has not paid or agreed to pay any company or person, other than a bona fide employee or approved subcontractor working solely for Contractor/Service Provider, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. Contractor/Service Provider further warrants and represents that no officer or employee of City, has any interest, whether contractual, non-contractual, financial or otherwise, in this transaction, the proceeds hereof, or in the business of Contractor/Service Provider or Contractor/Service Provider’s subcontractors. Contractor/Service Provider further agrees to notify City in the event any such interest is discovered whether or not such interest is prohibited by law or this Agreement. For breach or violation of any of these warranties, City shall have the right to rescind this Agreement without liability. 5.3 Levine Act. California Government Code section 84308, commonly known as the Levine Act, prohibits public agency officers from participating in any action related to a contract if such officer receives political contributions totaling more than $500 within the previous twelve months, and for twelve months following the date a final decision concerning the contract has been made, from the person or company awarded the contract. The Levine Act also requires disclosure of such contribution by a party to be awarded a specific contract. In order to assure compliance with these requirements, Contractor/Service Provider shall comply with the disclosure requirements identified in the attached Exhibit D, incorporated into the Agreement by this reference. 6. REMEDIES 6.1 Termination for Cause. If for any reason whatsoever Contractor/Service Provider shall fail to perform the Required Services under this Agreement, in a proper or timely manner, or if Contractor/Service Provider shall violate any of the other covenants, agreements or conditions of this Agreement (each a “Default”), in addition to any and all other rights and remedies City may have under this Agreement, at law or in equity, City shall have the right to terminate this Agreement by giving five (5) days written notice to Contractor/Service Provider. Such notice shall identify the Default and the Agreement termination date. If Contractor/Service Provider notifies City of its intent to cure such Default prior to City’s specified termination date, and City agrees that the specified Default is capable of being cured, City may grant Contractor/Service Provider up to ten (10) additional days after the designated termination date to effectuate such cure. In the event of a termination under this Section 6.1, Contractor/Service Provider shall immediately provide City any and all ”Work Product” (defined in Section 7 below) prepared by Contractor/Service Provider as part of the Required Services. Such Work Product shall be City’s sole and exclusive property as provided in Section 7 hereof. Contractor/Service Provider may be entitled to compensation for work satisfactorily performed prior to Contractor/Service Provider’s receipt of the Default notice; provided, however, in no event shall such compensation exceed the amount that would have been payable under this Agreement for such work, and any such compensation shall be reduced by any costs incurred or projected to be incurred by City as a result of the Default. Page 542 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 8 City of Chula Vista Agreement No.: 2026-277 Service Provider Name: San Diego Association of Governments Rev. 6.4.2026 6.2 Termination or Suspension for Convenience of City. City may suspend or terminate this Agreement, or any portion of the Required Services, at any time and for any reason, with or without cause, by giving specific written notice to Contractor/Service Provider of such termination or suspension at least fifteen (15) days prior to the effective date thereof. Upon receipt of such notice, Contractor/Service Provider shall immediately cease all work under the Agreement and promptly deliver all “Work Product” (defined in Section 7 below) to City. Such Work Product shall be City's sole and exclusive property as provided in Section 7 hereof. Contractor/Service Provider shall be entitled to receive just and equitable compensation for this Work Product in an amount equal to the amount due and payable under this Agreement for work satisfactorily performed as of the date of the termination/suspension notice plus any additional remaining Required Services requested or approved by City in advance that would maximize City’s value under the Agreement. 6.3 Waiver of Claims. In the event City terminates the Agreement in accordance with the terms of this Section, Contractor/Service Provider hereby expressly waives any and all claims for damages or compensation as a result of such termination except as expressly provided in this Section 6. 6.4 Administrative Claims Requirements and Procedures. No suit or arbitration shall be brought arising out of this Agreement against City unless a claim has first been presented in writing and filed with City and acted upon by City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may be amended, the provisions of which, including such policies and procedures used by City in the implementation of same, are incorporated herein by this reference. Upon request by City, Contractor/Service Provider shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. 6.5 Governing Law/Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in San Diego County, State of California. Contractor/Service Provider hereby waives any right to remove any action from San Diego County as may otherwise be permitted by California Code of Civil Procedure section 394. 6.6 Service of Process. Contractor/Service Provider agrees that it is subject to personal jurisdiction in California. If Contractor/Service Provider is a foreign corporation, limited liability company, or partnership that is not registered with the California Secretary of State, Contractor/Service Provider irrevocably consents to service of process on Contractor/Service Provider by first class mail directed to the individual and address listed under “For Legal Notice,” in section 1.B. of Exhibit A to this Agreement, and that such service shall be effective five days after mailing. 7. OWNERSHIP AND USE OF WORK PRODUCT All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced in whole or in part under this Agreement in connection with the performance of the Required Services (collectively “Work Product”) shall be the sole and exclusive property of City. No such Work Product shall be subject to private use, copyrights or patent rights by Contractor/Service Provider in the United States or in any other country without the express, prior written consent of City. City shall have unrestricted authority to publish, disclose, distribute, and otherwise use, copyright or patent, in whole or in part, any such Work Product, without requiring any permission of Contractor/Service Provider, except as may be limited by the provisions of the Public Records Act or expressly prohibited by other applicable laws. With respect to computer files containing data generated as Work Product, Contractor/Service Provider shall make available to City, upon reasonable written request by City, the necessary functional computer software and hardware for purposes of accessing, compiling, transferring and printing computer files. Page 543 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 9 City of Chula Vista Agreement No.: 2026-277 Service Provider Name: San Diego Association of Governments Rev. 6.4.2026 8. GENERAL PROVISIONS 8.1 Amendment. This Agreement may be amended, but only in writing signed by both Parties. 8.2 Assignment. City would not have entered into this Agreement but for Contractor/Service Provider’s unique qualifications and traits. Contractor/Service Provider shall not assign any of its rights or responsibilities under this Agreement, nor any part hereof, without City’s prior written consent, which City may grant, condition or deny in its sole discretion. 8.3 Authority. The person(s) executing this Agreement for Contractor/Service Provider warrants and represents that they have the authority to execute same on behalf of Contractor/Service Provider and to bind Contractor/Service Provider to its obligations hereunder without any further action or direction from Contractor/Service Provider or any board, principle or officer thereof. 8.4 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which shall constitute one Agreement after each Party has signed such a counterpart. 8.5 Entire Agreement. This Agreement together with all exhibits attached hereto and other agreements expressly referred to herein, constitutes the entire Agreement between the Parties with respect to the subject matter contained herein. All exhibits referenced herein shall be attached hereto and are incorporated herein by reference. All prior or contemporaneous agreements, understandings, representations, warranties and statements, oral or written, are superseded. 8.6 Record Retention. During the course of the Agreement and for three (3) years following completion of the Required Services, Contractor/Service Provider agrees to maintain, intact and readily accessible, all data, documents, reports, records, contracts, and supporting materials relating to the performance of the Agreement, including accounting for costs and expenses charged to City, including such records in the possession of sub-contractors/sub-Contractor/Service Providers. 8.7 Further Assurances. The Parties agree to perform such further acts and to execute and deliver such additional documents and instruments as may be reasonably required in order to carry out the provisions of this Agreement and the intentions of the Parties. 8.8 Independent Contractor. Contractor/Service Provider is and shall at all times remain as to City a wholly independent contractor. Neither City nor any of its officers, employees, agents or volunteers shall have control over the conduct of Contractor/Service Provider or any of Contractor/Service Provider’s officers, employees, or agents (“Contractor/Service Provider Related Individuals”), except as set forth in this Agreement. No Contractor/Service Provider Related Individuals shall be deemed employees of City, and none of them shall be entitled to any benefits to which City employees are entitled, including but not limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or other leave benefits. Furthermore, City will not withhold state or federal income tax, social security tax or any other payroll tax with respect to any Contractor/Service Provider Related Individuals; instead, Contractor/Service Provider shall be solely responsible for the payment of same and shall hold the City harmless with respect to same. Contractor/Service Provider shall not at any time or in any manner represent that it or any of its Contractor/Service Provider Related Individuals are employees or agents of City. Contractor/Service Provider shall not incur or have the power to incur any debt, obligation or liability whatsoever against City, or bind City in any manner. Page 544 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 10 City of Chula Vista Agreement No.: 2026-277 Service Provider Name: San Diego Association of Governments Rev. 6.4.2026 8.9 Notices. All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any Party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such Party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified in this Agreement at the places of business for each of the designated Parties as indicated in Exhibit A, or otherwise provided in writing. 8.10 Electronic Signatures. Each Party agrees that the electronic signatures, whether digital or encrypted, of the Parties included in this Agreement are intended to authenticate this writing and to have the same force and effect as manual signatures. Electronic Signature means any electronic sound, symbol, or process attached to or logically associated with a record and executed and adopted by a Party with the intent to sign such record, including facsimile or email electronic signatures, pursuant to the California Uniform Electronic Transactions Act (Cal. Civ. Code §§ 1633.1 to 1633.17) as amended from time to time. End of page. Next page is signature page.) Page 545 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 11 City of Chula Vista Agreement No.: 2026-277 Service Provider Name: San Diego Association of Governments Rev. 6.4.2026 SIGNATURE PAGE CONTRACTOR/SERVICE PROVIDER SERVICES AGREEMENT IN WITNESS WHEREOF, by executing this Agreement where indicated below, City and Contractor/Service Provider agree that they have read and understood all terms and conditions of the Agreement, that they fully agree and consent to bound by same, and that they are freely entering into this Agreement as of the Effective Date. SAN DIEGO ASSOCIATION OF GOVERNMENTS APPROVED AS TO FORM BY: _______________________________ Marco A. Verdugo City Attorney Page 546 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 12 City of Chula Vista Agreement No.: 2026-277 Service Provider Name: San Diego Association of Governments Rev. 6.4.2026 EXHIBIT A SCOPE OF WORK AND PAYMENT TERMS 1. Contact People for Contract Administration and Legal Notice A. City Contract Administration: Chula Vista Police Department Jonathan Alegre, Police Administrative Services Administrator 315 Fourth Avenue, Chula Vista, CA 91910 619) 476-2570 jalegre@chulavistapdca.gov For Legal Notice Copy to: City of Chula Vista City Attorney 276 Fourth Avenue, Chula Vista, CA 91910 619-691-5037 CityAttorney@chulavistaca.gov B. Contractor/Service Provider Contract Administration: San Diego Association of Governments 401 B Street, San Diego, CA 92101 619) 699-1900 Grace.Mino@sandag.org For Legal Notice Copy to: same as above] 2. Required Services A. General Description: Contractor/Service Provider will provide program evaluation services to support Proposition 64 Public Health and Safety Cohort 4 Grant Program. B. Detailed Description: San Diego Association of Governments (SANDAG) will perform grant program evaluation as outlined in the proposal submitted to Board of State and Community Corrections (BSCC) for the Proposition 64 Public Health and Safety Cohort Grant Program, which is attached as Exhibit E. Serving as the outside evaluator, SANDAG will ensure ongoing monitoring and quality control of the grant program, as well as documenting and assessing achievement of proposed goals and outcomes. Project activities that support the goals and objectives of the Proposition 64 Public Health and Safety Cohort 4 Grant Program include, but not limited to: Attend meetings and collaborate with program partners and staff Develop Local Evaluation Plan (identifying/capturing appropriate program measures) and submit to BSCC no later than November 20, 2026 Provide timely data to program partners and staff to drive decisions Page 547 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 13 City of Chula Vista Agreement No.: 2026-277 Service Provider Name: San Diego Association of Governments Rev. 6.4.2026 Conduct surveys regarding perception of services received Create and maintain dashboard documenting up-to-date information on client intakes, exits and services received Complete quarterly reports describing progress made on program objectives Complete Final Local Evaluation Report and submit to BSCC no later than December 31, 2031 3. Term: In accordance with Section 1.10 of this Agreement, the term of this Agreement shall begin July 1, 2026 and end on December 31, 2031 for completion of all Required Services. 4. Compensation: A. Form of Compensation Deliverables. For performance of the Required Services by Contractor/Service Provider as identified in Section 2.B., above, City shall pay Contractor/Service Provider for the productive hours of time spent by Contractor/Service Provider in the performance of the Required Services. B. Reimbursement of Costs None, the compensation includes all costs Notwithstanding the foregoing, the maximum amount to be paid to the Contractor/Service Provider for services performed through December 31, 2031 shall not exceed $315,000. 5. Special Provisions: Permitted Sub-Contractor/Service Providers: None Security for Performance: None Notwithstanding the completion date set forth in Section 3 above, City has option to extend this Agreement for Insert Number of Terms additional terms, defined as a one-year increment or Enter a Specific Date. if applicable. The City Manager or Director of Finance/Treasurer shall be authorized to exercise the extensions on behalf of the City. If the City exercises an option to extend, each extension shall be on the same terms and conditions contained herein, provided that the amounts specified in Section 4 above may be increased by up to Insert Percentage of Increase or Actual Dollar Amount for each extension. The City shall give written notice to Contractor/Service Provider of the City’s election to exercise the extension via the Notice of Exercise of Option to Extend document. Such notice shall be provided at least 30 days prior to the expiration of the term. None Page 548 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 14 City of Chula Vista Agreement No.: 2026-277 Service Provider Name: San Diego Association of Governments Rev. 6.4.2026 EXHIBIT B INSURANCE REQUIREMENTS Contractor/Service Provider shall adhere to all terms and conditions of Section 3 of the Agreement and agrees to provide the following types and minimum amounts of insurance, as indicated by checking the applicable boxes x). Type of Insurance Minimum Amount Form General Liability: Including products and completed operations, personal and advertising injury general aggregate limit must apply separately to this Agreement or the twice the required occurrence limit Additional Insured Endorsement or Blanket AI Endorsement for City* CG 00 01 Must be primary and must not exclude Products/Completed Operations Automobile Liability $1,000,000 per accident for bodily injury, including death, and property damage CA 00 01 Code 1-Any Auto Code 8-Hired Workers’ Compensation Employer’s Liability 1,000,000 disease policy limit 1,000,000 disease each employee Other Negotiated Insurance Terms: None. Page 549 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 15 City of Chula Vista Agreement No.: 2026-277 Service Provider Name: San Diego Association of Governments Rev. 6.4.2026 EXHIBIT C CONTRACTOR/SERVICE PROVIDER CONFLICT OF INTEREST DESIGNATION The Political Reform Act 1 and the Chula Vista Conflict of Interest Code 2 (“Code”) require designated state and local government officials, including some Contractor/Service Providers, to make certain public disclosures using a Statement of Economic Interests form (Form 700). Once filed, a Form 700 is a public document, accessible to any member of the public. In addition, Contractor/Service Providers designated to file the Form 700 are also required to comply with certain ethics training requirements.3 A. Contractor/Service Provider will not exert influence over the official or contracting decisions of City and is therefore EXCLUDED 4 from disclosure. B. Contractor/Service Provider WILL exert influence over the official or contracting decisions of City and their disclosure designation is as follows: APPLICABLE DESIGNATIONS FOR INDIVIDUAL(S) ASSIGNED TO PROVIDE SERVICES Category descriptions available at www.chulavistaca.gov/departments/city-clerk/conflict-of-interest-code.) Name Email Address Applicable Designation A. Full Disclosure B. Limited Disclosure (select one or more of the categories under which the Contractor shall file): 1. 2. 3. 4. 5. 6. 7. Justification: C. Excluded from Disclosure 1. Required Filers Each individual who will be performing services for the City pursuant to the Agreement and who meets the definition of “Contractor/Service Provider,” pursuant to FPPC Regulation 18700.3, must file a Form 700. 2. Required Filing Deadlines Each initial Form 700 required under this Agreement shall be filed with the Office of the City Clerk via the City's online filing system, NetFile, within 30 days of the approval of the Agreement. Additional Form 700 filings will be required annually on April 1 during the term of the Agreement, and within 30 days of the termination of the Agreement. 3. Filing Designation The City Department Director will designate each individual who will be providing services to the City pursuant to the Agreement as full disclosure, limited disclosure, or excluded from disclosure, based on an analysis of the services the Contractor/Service Provider will provide. Notwithstanding this designation or anything in the Agreement, the Contractor/Service Provider is ultimately responsible for complying with FPPC regulations and filing requirements. If you have any questions regarding filing requirements, please do not hesitate to contact the City Clerk at (619)691-5041, or the FPPC at 1-866-ASK-FPPC, or (866) 275-3772 *2. Pursuant to the duly adopted City of Chula Vista Conflict of Interest Code, this document shall serve as the written determination of the Contractor’s requirement to comply with the disclosure requirements set forth in the Code. Completed by: Jonathan Alegre 1 Cal. Gov. Code §§81000 et seq.; FPPC Regs. 18700.3 and 18704. 2 Chula Vista Municipal Code §§2.02.010-2.02.040. 3 Cal. Gov. Code §§53234, et seq. 4 CA FPPC Adv. A-15-147 (Chadwick) (2015); Davis v. Fresno Unified School District (2015) 237 Cal.App.4th 261; FPPC Reg. 18700.3 (Consultant defined as an “individual” who participates in making a governmental decision; “individual” does not include corporation or limited liability company). Page 550 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 16 City of Chula Vista Agreement No.: 2026-277 Service Provider Name: San Diego Association of Governments Rev. 6.4.2026 EXHIBIT D CONSULTANT LEVINE ACT DISCLOSURE California Government Code section 84308, commonly referred to as the Levine Act, prohibits any City of Chula Vista Officer 5 (“Officer”) from taking part in decisions related to a contract if the Officer received a political contribution totaling more than $500 within the previous twelve months, and for twelve months following the date a final decision concerning the contract has been made, from the person or company awarded the contract. The Levine Act also requires disclosure of such contribution by a party to be awarded a specific contract. The Levine Act does not apply to competitively bid, labor, or personal employment contracts; contracts valued at under $50,000; contracts where no party receives financial compensation; or contracts between two or more agencies. A. The Levine Act (Govt. Code §84308) DOES NOT apply to this Agreement. B. The Levine Act (Govt. Code §84308) does apply to this Agreement and the required disclosure is as follows: Current Officers can be located on the City of Chula Vista’s websites below: Mayor & Council - https://www.chulavistaca.gov/departments/mayor-council City Attorney - https://www.chulavistaca.gov/departments/city-attorney/about-us Planning Commissioners – www.chulavistaca.gov/pc Candidate for Elected Office – www.chulavistaca.gov/elections 1. Have you or your company, or any agent on behalf of you or your company, made political contributions totaling more than $500 to any Officer in the 12 months preceding the date you submitted your proposal, the date you completed this form, or the anticipated date of any Council action related to this Agreement? YES: If yes, which Officer(s): Click or tap here to enter text. NO: 2. Do you or your company, or any agent on behalf of you or your company, anticipate or plan to make political contributions totaling more than $500 to any Officer in the 12 months following the finalization of this Agreement or any Council action related to this Agreement? YES: If yes, which Officer(s): Click or tap here to enter text. NO: Answering yes to either question above may not preclude the City of Chula Vista from entering into or taking any subsequent action related to the Agreement. However, it may preclude the identified Officer(s) from participating in any actions related to the Agreement. 5 “Officer” means any elected or appointed officer of an agency, any alternate to an elected or appointed officer of an agency, and any candidate for elective office in an agency. GC § 84308 Page 551 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda EXHIBIT E Page 552 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 553 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 554 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 555 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 556 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 557 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 558 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 559 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 560 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 561 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 562 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 563 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 564 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 565 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 566 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 567 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 568 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 569 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 570 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 571 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 572 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 573 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 574 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 575 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 576 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 577 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Item 7.4:Chula Vista Police Prop 64 Grant Prepared by Sergeant Patrick White, Special Investigations Unit Prepared for City Council Page 578 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda CA BSCC Prop 64 Grant •The California Board of State and Community Corrections (BSCC) administers the Proposition 64 Public Health & Safety Grant Program. •Funds local governments to assist with law enforcement, fire protection, youth prevention, public health, and environmental protection tied to cannabis legalization. Page 579 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda CA BSCC Prop 64 Grant •This is the 3rd Prop 64 grant awarded to the Police Department. The total grant amount is $3,207,603 over 5 years. •The City Manager’s Office will be the Lead Public Agency (LPA). •The project builds upon the PD’s experience and accomplishments from the two prior grants. Page 580 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda CA BSCC Prop 64 Grant •Cohort 3 grant is ongoing. The PD has met or exceeded all the grant goals. •Just a few highlights include: •42 inspections of our legal cannabis dispensaries. •10 illegal/unlicensed cannabis dispensaries and illegal delivery services were shut down. Those operators were arrested or face ongoing criminal charges. •Thousands of pounds of illegal cannabis and other drugs seized.Page 581 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 3 Address the public health, safety, and environmental impacts resulting from the legalization of adult-use cannabis. Cannabis Business Compliance Project Goals With SBCS and SANDAG Illegal Cannabis Enforcement Youth Safety and Officer Training Youth Prevention and Intervention Enhance compliance among licensed cannabis businesses. Proactively identify, investigate, and address illegal cannabis activity. By training on marijuana laws/regulations and investigations of cannabis-related juvenile cases. Programs by SBCS: Diversion, prevention, and intervention services Page 582 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 6 Accepting This Grant Funding Also Supports Salary and benefits of a detective assigned to the Special Investigations Unit. Overtime funding for PD personnel to conduct business inspections and minor decoy operations. Officer safety equipment/body armor. Two detective vehicles, one evidence van. ✓ ✓ ✓ ✓ Page 583 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda 7 Fiscal Impact City of Chula Vista No fiscal impact to the General Fund. Page 584 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Recommended Action Adopt the following resolutions: •Accepting $3,207,603 in grant funds from the California Board of State and Community Corrections for the Proposition 64 Public Health and Safety Grant Program and appropriating $855,238 to the fiscal year 2026-27 Police Grants Section of the State Grants Fund (4/5 Vote Required) •Approving Agreement Number BSCC 1430-26 with the Board of State Community Corrections for the Proposition 64 Public Health and Safety Grant Program •Approving agreements with SBCS Corporation and SANDAG for the Proposition 64 Public Health and Safety Grant Program Page 585 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 586 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 587 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 588 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 589 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 590 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 591 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 592 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 593 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda FROM THE OFFICE OF DEPUTY MAYOR Cesar T. Fernandez DATE: August 27, 2026 TO: Kerry Bigelow, City Clerk FROM: Deputy Mayor Fernandez SUBJECT: City Council Board, Commission, and Committee Appointments The purpose of this memorandum is to formally transmit the appointments made by Deputy Mayor Fernandez to the City's boards, commissions, committees, and other appointed bodies for the current appointment cycle. Please update the City's official records to reflect the following appointments: Board / Commission / Committee Appointee ● Measure A Aldo Brambila ● Charter Review Dr. Vernon Moore ● Sustainability Marianna Garcia Diaz ● Veterans Advisory Chad Jones ● Traffic Safety John Rogers These appointments are submitted in accordance with the applicable provisions of the Chula Vista Municipal Code, City Charter, Council Policies, and any other governing appointment procedures. Please let our office know if any additional documentation, oath of office forms, conflict-of-interest filings, or other administrative requirements are needed to complete these appointments. Thank you for your assistance in updating the City's official records. Respectfully, Deputy Mayor Cesar Fernandez City of Chula Vista WISDOM | COURAGE | JUSTICE | TEMPERANCE 276 Fourth Avenue | Chula Vista | California 91910 | (619) 691-5044 www.chulavista.gov Page 594 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 595 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 596 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 597 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 598 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda R. Vernon Moore 1 Richard Vernon Moore Home address: Chula Vista, CA 9 Office address: Sweetwater Union High School District 1130 Fifth Avenue Chula Vista CA 91911 619.691.5533 vernon.moore@sweetwaterschools.org PROFESSIONAL PREPARATION Doctorate in Educational Leadership San Diego State University Emphasis: Urban Educational Structures and Systems Granted: December 2014 Tier II Administrative Services Credential Chapman University Emphasis: Educational Leadership Granted: February 2008 Preliminary Administrative Services Credential San Diego State University Emphasis: Educational Leadership Granted: May 2001 Master of Arts in Education San Diego State University Emphasis: Curriculum and Instruction Granted: August 1998 Professional Clear Single-Subject Teaching Credential University of San Diego Emphasis: English/Language Arts Granted: May 1995 Bachelor of Arts in English University of California, Los Angeles Emphasis: American Studies Granted: September 1994 AREAS OF PROFESSIONAL INTEREST Effective, Transparent District Leadership Streamlined Bureaucratic Systems Community Engagement Student Empowerment Page 599 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda R. Vernon Moore 2 PROFESSIONAL EXPERIENCES Assistant Superintendent, Educational Equity and Support Services February 2021 to Present Sweetwater Union High School District Chula Vista, California 619.691.5533 Leadership Highlights • Implemented a student and community Empowerment Framework, based on Identity, Interest and Intentional Outreach. • Supervised Alternative Education schools in earning 6-year accreditation from the Western Association of Schools and Colleges (WASC). • Coordinated the implementation of COVID-19 protocols to increase opportunities for in-person learning as well as participating in athletics. Member of the district executive Cabinet, serve as the executive leader for the following departments: • Adult Education • Alternative Education • Athletics • Educational Equity • Special Education • Student Support Services Coordinate reviews of curricula and academic approaches designed to improve teaching methods to positively influence the learning environment for students. Collaborate with district leaders and external partners (including the National Center for Urban School Transformation) to address persistent disparities among student demographic groups, including concerns related to discipline, access to advanced and engaging coursework, as well as empowerment activities. Conceptualize, design and lead work to transform the district’s Alternative Education schools and programs, including aligning site resources and developing plans for an early/middle college. Lead district-wide implementation of the Multi-Tiered Systems of Support (MTSS) model of student interventions as well as mental health and wellness services for students and staff members. Present all student expulsion cases to the Board of Trustees for final disposition. Serve on the District’s negotiations team, bargaining with all labor associations, including supervisors, certificated and classified units. Page 600 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda R. Vernon Moore 3 Chief Compliance Officer August 2016 to February 2021 Sweetwater Union High School District Chula Vista, California 619.691.5500 Leadership Highlights • Led effort to achieve “substantial proportionality” for female students participating in athletics at Castle Park High School as well as other district schools. • Streamlined district complaint procedures to have consistent timelines and contact persons. • Developed and trained staff in “Appropriate Boundaries” guidelines regarding district personnel interacting with students in a positive manner. Member of the district executive leadership team, served as the supervisor of the Compliance Office and the primary contact and investigator in the district for all compliance-related issues, including: • Title IX • Sexual Harassment • Uniform Complaint Procedures • Nondiscrimination Complaints • General Complaints Served as the primary district contact for all efforts regarding Title IX requirements of Castle Park High School under the adjudicated Final Joint Compliance Plan. Coordinate district-wide training for all site Title IX officers, administrators and athletic coaches. Provide follow up on Title IX issues with district leaders via bimonthly Title IX work group meetings. Investigated all Uniform Complaints and completed all associated reports. Corresponded directly with California Department of Education (CDE) and other agencies regarding appeals. Led the district’s initial, on-site Federal Program Monitoring review of programs and procedures associated with the CDE’s Educational Equity instrument. Coordinated and delivered compliance-related training sessions to all stakeholders including: • Classified Staff • Certificated Staff • Administrators • Metro Conference Coaches, Athletic Directors and Administrators Coordinated the district’s comprehensive Athletics program and serve as the president of the Metropolitan Conference. Page 601 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda R. Vernon Moore 4 Executive Director, Student Services November 2013 to July 2016 San Diego Unified School District San Diego, California 619.725.8000 Leadership Highlights: • Designed and implemented a district- wide safety campaign that included an anonymous method to report bullying and other unsafe conditions. • Facilitated the collaborative effort to begin the “re-engagement” process serving students and adults not successful in traditional educational settings. Member of executive district leadership team, focused on secondary support services and instruction. Developed the Office of Youth Advocacy, which included the following departments: • Placement and Appeal • Dropout Prevention • Race Human Relations and Advocacy • Student Attendance Review Board • ALBA Community Day School Implemented and ambitious student advocacy program, including an initial training platform for staff members, a student survey and support for school-based student- affinity groups. Facilitated a collaborative effort between the San Diego Youth Development Office, the Urban League of San Diego County, the San Diego Workforce Partnership and the San Diego Unified School District to implement a “re-engagement” process aimed at identifying, re- connecting, and mentoring students and adults who have not experienced success in the educational system. Oversaw the Placement and Appeal Office, the district’s primary department to address student discipline, processing all recommendations for expulsion. Presided over a 37.5 percent drop in expulsions and a 18.3 percent drop in suspensions throughout the district during the 2013-2014 school year. Collaborated with Title IX Coordinator and Office of Quality Assurance in developing protocols to monitor, investigate and address reports of bullying, discrimination and other compliance-related concerns. With a group of educators and community members, developed the district’s first ever, college-preparatory, Introduction to Ethnic Studies course. Page 602 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda R. Vernon Moore 5 Principal July 2009 to November 2013 ALBA Community Day School at North Park San Diego Unified School District San Diego, California 619.344.3900 Leadership Highlights: • Coordinated ALBA’s transition from two separate campuses to a specially designed, centralized school site. • Led school improvement efforts with 2 consecutive years of meeting AYP targets; school exited Program Improvement Year 5 in 2011. Principal of the Grades 6 - 12 ALBA (Alternative Learning for Behavior and Attitude) Community Day School program. This campus serves students who have been expelled or mandatorily excluded from public schools. Developed the motto: Empowering Students: Changing Lives. In small, personalized classroom settings, teachers assessed students and created differentiated academic lessons. At weekly Response to Intervention and Instruction (RtI2) meetings as well as in individual sessions, teachers, counselors, therapists, and administrators collected and shared vital information to promote student success. Students participated in various enrichment activities, such as community service projects, mock trial competitions, and outdoor excursions. Specific duties included: • Overall supervision and management of two distinct programs (high school and middle school) • Community liaison to surrounding neighborhoods (member of the North Park Community Association) Managed successful partnerships with the following organizations: • San Diego State University • University of San Diego • North Park YMCA Youth and Family Services Center • San Diego Museum of Art • North Park Action Team • North Park Community Association • Street Law • Outdoor Outreach • Health Sciences High School and Middle College • Reality Changers • Urban Youth Collaborative Page 603 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda R. Vernon Moore 6 Principal December 2006 to June 2009 Lincoln High School San Diego Unified School District San Diego, California 619.266.6500 Leadership Highlights: • Served on the leadership team that opened the newly constructed Lincoln High School campus in 2007. • Led the focused improvement efforts that resulted in a 47-point API increase in 2009—the highest secondary school API growth in San Diego Unified School District that year (540 to 587). Co-Principal of four small learning communities on the Lincoln High School campus. Primary duties included establishing school mission, vision, and core values. Directly responsible for developing overall school program, staffing, and student recruitment and enrollment efforts. Managed the following programs for the entire site: • All federal, state, and district-mandated testing • Title I, School Site Council, and other categorical procedures, budgets, and mandates • English/Language Arts curriculum and professional development • Visual and Performing Arts programming and performances • Western Association of Schools and Colleges Accreditation process (6 year accreditation) Maintained the following partnerships: • California Ballet • Mainly Mozart • La Diego Dance Company • Old Globe Theater Vice Principal June 2005 to November 2006 School of Creative and Performing Arts San Diego Unified School District San Diego, California 619.470.0555 Leadership Highlights: • Served as the testing coordinator for the 14-point API (Academic Performance Index) growth in 2006 (707 to 721). Served as the primary administrator for high school- related issues at an arts-based magnet school (Grades 6- 12); specific duties included: • Supervised the English, history/social science, physical education, and visual arts departments. • Coordinated the school-wide assessments and senior exhibitions. • Managed the school site disaster plans as well as campus supervision assistants. • Worked closely with district’s Transportation Department in coordinating schools busing needs. • With teachers, parents, and students, monitored the implementation of the school-wide discipline plan—“Guidelines for Student Success.” • Assisted in establishing and enforcing all student conduct and campus safety policies and procedures • Worked collaboratively with teachers in developing curriculum for American literature. • Provided Lesson Study professional development opportunities for English teachers. Page 604 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda R. Vernon Moore 7 Literacy Administrator August 2004 to June 2005 Scripps Ranch High School San Diego Unified School District San Diego, California 858.621.9020 Leadership Highlights: • Coordinated the literacy improvement strategies that resulted in a 26-point API growth in 2005 (773 to 799). At a high-performing secondary school, served as the primary administrator for the English/Language Arts program. Specific duties included: • Provided in-depth instructional support, curriculum planning, coaching, and evaluation for the school’s English/Language Arts teachers. • Developed and maintained a comprehensive literacy plan, featuring units of study, common assessments, and protocols for reviewing student work. • Implemented a school-wide English Language Development program, featuring Specially Designed Academic Instruction in English (SDAIE) strategies as well as experiential learning. • Coordinated school-wide professional development in all content areas. • Accompanied students on various community activities, including the Annual Martin Luther King, Jr. Parade and university conferences. • Assisted in establishing and enforcing all student conduct and campus safety policies and procedures. Vice Principal October 2001 to June 2004 Hoover High School San Diego Unified School District San Diego, California 619.344.4500 Leadership Highlights: • Served as testing coordinator and led school improvement efforts that resulted in an overall 92-point increase in API from 2001 (461) to 2004 (553). As part of the site administrative team, direct responsibilities included evaluation of teachers and staff, planning and implementation of professional development, and coordination of school-wide literacy effort. Direct supervisor of the following: • Athletics department • English language development (ELD) department • English/language arts (ELA) department • Professional development committee • Beginning Teacher Support and Assessment (BTSA) • School Site Council (SSC) Managed the following site budgets and departments: • Athletics • Title I • Staff Development Participated on the Professional Development Site (PDS) committee for the City Heights Educational Collaborative. Led a WASC accreditation focus group. Assisted in establishing and enforcing all student conduct and campus safety policies and procedures. Page 605 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda R. Vernon Moore 8 Curriculum/Testing Coordinator April 2000 to October 2001 Hoover High School San Diego Unified School District San Diego, California 619.344.4500 As part of the administrative team, conducted department meetings to evaluate and modify content-area curricula. Specific duties included: • Served as the chair of the staff development committee, planning and implementing monthly professional trainings. • Coordinated all aspects of state-mandated testing at the site, including scheduling students and facilities, training teachers and staff, organizing and distributing materials, and accurately inventorying materials for submission to district testing office. • Wrote and edited the Hoover LINK, the award- winning monthly school newsletter. • Served as chair of the school advisory council (SAC) and the English-learner advisory committee (ELAC), as well as a member of the site governance and instructional support teams. Dean of Students January 1998 to April 2000 Serra High School (now, Canyon Hills High School) San Diego Unified School District San Diego, California 858.496.8342 At a comprehensive high school with approximately 2000 students, worked as part of the administrative team as the direct contact for student disciplinary matters. With the community-based school climate committee, established and enforced school-wide student conduct and campus safety policies and procedures. Specific duties included: • Designed and implemented support and supervision plans for all athletic events, including night football and basketball games. • Served as the district liaison for the school’s Voluntary Ethnic Enrollment Program (VEEP). • Participated as a design-task team co-chair for the Western Association of Schools and Colleges (WASC) accreditation process and on the leadership team for State of California’s Coordinated Compliance Review (CCR). Page 606 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda R. Vernon Moore 9 7th Grade English/AVID Teacher September 1995 to January 1998 School of Creative and Performing Arts San Diego Unified School District San Diego, California 619.470.0555 Using a variety of learning strategies, instructed 7th grade students in English/language arts at a magnet school dedicated to the arts. Conferred with the English department as well as the middle school team to develop relevant curriculum and lesson plans. Taught the middle- level (7th and 8th grade) Advancement Via Individual Determination (AVID) college-preparation class. Using the AVID curriculum, instructed students in Cornell note-taking and other study skills. Served as the advisor for the Class of 1998—planning and supervising various senior student functions. OTHER PROFESSIONAL EXPERIENCES Graduate Instructor May 2022 to present San Diego State University San Diego, California Instructed master’s level course - Teacher Education 677 - Research-Based Pedagogy for Diverse Learners. In this class, students explored ways to provide effective instruction to the diverse learners they will experience in their classrooms. Students reviewed and critiqued published research as well as completed a book study. Graduate Instructor September 2003 to December 2003 San Diego State University San Diego, California Planned and taught master’s level course - Teacher Education 604. The class focused on the innovative teacher-led professional development system of Lesson Study in which teachers collaborate in small groups planning and implementing shared lessons. Classroom research was reviewed for publication. Guest Lecturer April 2000 to May 2000 San Diego State University San Diego, California Planned and instructed several sessions of master’s level course - Teacher Education 790 classes. Session topics included “Using Assessment to Inform Instruction” and “Alleviating Standardized Testing Concerns.” Discussion Leader June 1998 to June 1999 San Diego State University Reading/Language Arts Conference San Diego, California Coordinated and held discussion sessions with conference attendees. Topics included implementation of literacy instructional strategies, lesson planning, and community/parent involvement. Basketball Referee November 1995 to August 1998 San Diego County Basketball Officials Association San Diego, California Officiated youth and high school basketball games throughout San Diego County. Page 607 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda R. Vernon Moore 10 PRESENTATIONS Estrada, E., Moore, R. V. & Park, S. (2022, September) Title IX Program Evaluation. Presentation at the CIF San Diego Section Athletic Administrator Symposium, San Diego, CA. Moore, R. V. (2021, September). Title IX Updates in High School Athletic Programs. Presentation at the CIF San Diego Section Athletic Administrator Symposium, San Diego, CA. Hughes, R. & Moore, R. V. (2020, December). Title IX Guidance in High School Athletic Programs. Presentation for CIF San Diego Section Administrators and Coaches, San Diego, CA. Moore, R. V. (2020, August). Managing Change in Uncertain Times. Presentation at the Indiana Youth Institute Back to School Summit: Learning Through Change, Indianapolis, IN. Dotson, M., Grimmet, K., Merritt, B. & Moore, R. V. (2020, August). Elevating Equity and Inclusion. Panel Presentation at the Indiana Youth Institute Back to School Summit: Learning Through Change, Indianapolis, IN. Moore, R. V. (2020, February). Maintaining Appropriate Staff-to-Student Boundaries: Guidelines to Avoid the Appearance of Impropriety with Students. Presentation at the Aztecs for Education 101 Conference, San Diego, CA. Carbuccia, J. & Moore, R. V. (2019, October). Thriving Under a Court-Ordered Title IX Compliance Plan. Presentation at the Association of Title IX Administrators West Coast Conference, San Francisco, CA. Carroll, C., Johnson, R., Moore, R. V. & Willis III, B. (2019, April). Dreams Deferred: Lifting Our Children from the Quicksand of Educational Inequality. Panel Presentation at the Earl B. Gilliam Bar Foundation 2019 Martin Luther King Jr. Civil Rights Luncheon, San Diego, CA. Carbuccia, J., Jacobsen, R. & Moore, R. V. (2018, November). Booster Club: Free Money or Inequitable Liability. Presentation at the California Council of School Attorneys Annual Workshop, San Francisco, CA. Hughes, B. & Moore, R. V. (2018, July). Title IX Compliance as a Strategy for Equity. Presentation at the Sweetwater Union High School District Equity Symposium, Chula Vista, CA. Moore, R. V. (2016, March). Our Emerging Equity Challenge: Quality Educational Programs for Opportunity Youth. Presentation at the 2016 Deeper Learning Conference, San Diego, CA. Moore, R. V. (2016, February). A Conversation about School Discipline. Presentation at the Association of California School Administrators Principals’ Academy, El Centro, CA. Moore, R. V. & Sciarretta, D. (2013, March). 21st Century Learning and Innovation Skills. Presentation at the Ameson & San Diego State University Partnership for Educational Leadership Symposium, San Diego, CA. Page 608 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda R. Vernon Moore 11 Dodson, M., Moore, R. V. & Sciarretta, D. (2012, August). 21st Century Learning and Innovation Skills. Presentation at the Chinese and American Summer Educational Leadership Symposium, San Diego, CA. Moore, R. V. (2012, March). The Finer Points of Applying and Interviewing for Administrative Positions. Presentation at the Association of African American Educators Annual Conference, San Diego, CA. Bratton, K., Kinlaw, A., Crockett, T., Apple, S., McGlawn, T. & Moore, R. V. (2005, March). Young, Black, and Teaching: Reflections of Post-Civil Rights Educators. Presentation at the Association of African American Educators Annual Conference, San Diego, CA. Moore, K., Fisher, D., Moore, R. V., ElWardi, R., & Mongrue, L. (2004, May). Differentiating Literacy Staff Development at Professional Development Schools. Symposium at the International Reading Association Conference, Reno, NV. Moore, K., Moore, R. V. & Moore, J. (2004, May). Addressing African American Stereotypes in Literature. Presentation at the International Reading Association Conference, Reno, NV. Fisher, D. & Moore, R. V. (2004, January). 50 Ways to Leave No Child Behind: Providing Curriculum Supports. Presentation at the PEAK Conference on School Reform & Inclusive Education, Denver, CO. Frey, N., Moore, K. & Moore, R. V. (2003, November). Learning from Each Other: The Dual Role of the Reading Specialist in Urban Schools. Presentation at the Research Institute of the California Reading Association 37th Annual Conference, San Diego, CA. Moore, R.V., ElWardi, R. & Mongrue, L. (2003, November). Using Collegial Coaching to Inspire Literacy Instruction. Presentation at the California Reading Association 37th Annual Conference, San Diego, CA. Moore, R. V. & Moore, K. (2003, April). School-wide Efforts. Presentation to the faculty of Orosi High School, Orosi, CA. Moore, J., Moore, R. V. & Moore, K. (2003, March). Addressing African-Americans in Literature. Presentation at the Association of African-American Educators Annual Conference, San Diego, CA. Frey, N., Moore R. V. & Moore, K. (2003, January). School-wide Accountability. Presentation to the faculty of Orosi High School, Orosi, CA. Moore R. V. (2002, March). Standardized Testing. Presentation at the Association of African American Educators Annual Conference, San Diego, CA. Page 609 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda R. Vernon Moore 12 PUBLISHED WORKS McDaniels-Davidson, C., Arechiga-Romero, M., Snyder, T., Chris N., Sturgis K., Moore V., Bravo, R., Famania-Martinez, L., Oren E., and Kiene S. (2022). Development of an At-Home COVID-19 Test Results–Reporting System for a School District Primarily Serving Underrepresented Minority Groups, San Diego, CA, 2021– 2022. American Journal of Public Health, 112, S883-S886. Moore, R. V. (2014). Bureaucratic Structures in Urban High Schools, San Diego State University. Moore, R. V. (2003). An interview with Laurence Yep. The California Reader, 37(2), 47- 50. AWARDS City of Chula Vista Transformative Leader Proclamation (January 2026) Urban League of San Diego County, Educational and Youth Development Impact Honoree (December 2025) Association of California School Administrators, Region 18, Student Support Services Administrator of the Year (May 2023) Association of African American Educators, Educational Leadership Award (Mar 2018) University Council for Educational Administration, David L. Clark Scholar (Apr 2013) Phi Delta Kappa, Delta Upsilon Chapter Outstanding Black Educator (Feb 2010) PROFESSIONAL and SERVICE ORGANIZATIONS California Interscholastic Federation, San Diego Section • Executive Committee, 2023 to present • Board of Managers, 2021 to present Albert Einstein Academies Charter School • Board of Trustees, 2019 to 2025 Association of California School Administrators • Region 18 Representative for California Association of Professors of Educational Administration / Association of California School Administrators Committee, 2022 to 2024 • Region 18 Membership Services Representative, 2015 to 2017 Deeper Learning Equity Fellowship • Inaugural Fellows Cohort, 2015 to 2016 Page 610 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda R. Vernon Moore 13 Association of African American Educators, San Diego County • President, 2012 to 2014 Alpha Phi Alpha Fraternity, Inc. • Zeta Sigma Lambda Chapter Sigma Pi Phi Fraternity, Inc. • Alpha Pi Chapter Updated February 2026 Page 611 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 612 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 613 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 614 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Page 615 of 628 City of Chula Vista - City Council September 1, 2026 Post City Council Agenda Certificate in Human Rights from San Diego State University — San Diego, California Publications "A Fresh Perspective on Fascist Studies: Fascism as a Transnational and Transgenerational Phenomenon," Splice Journal of Undergraduate Scholarship at SDSU. San Diego State University Press. (2023). “Occupying Space: The Scalar Politics of Black Radicalism,” Master’s Thesis. Amsterdam, NL: University of Amsterdam; 2024. “Cooperative Renewable Energy Governance: Revenue, Self-Determination, and Climate Strategy in the Shadow of Judicial Federalism,” Oklahoma Law Review. University of Oklahoma. 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