HomeMy WebLinkAbout2010/10/12 Item 4
CITY COUNCIL
AGENDA STATEMENT
~(~ CITY OF
.~ (HULA VISTA
]0/12/]0, Item 4-_
REVIEWED BY:
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING AN AGREEMENT BETWEEN CITY
OF CHULA VISTA AND CITY OF SA DIEGO FOR THE USE OF
THE OTA Y V ALLEY TRUNK SEW INE
DIRECTOR OF PUBLIC WORKS
ASSISTANT DIREreR OF ENG
CITY MANAGER
ASSIST ANT CITY ANAGER 7-r-
4/5THS VOTE: YES 0 NO IZl
ITEM TITLE:
SUBMITTED BY:
SUMMARY
San Diego and Chula Vista had previously entered into a Sewage Transportation Agreement
concerning the Otay Rio Business Park under which San Diego has authorized Chula Vista to
discharge sewage into the San Diego Municipal Sewerage System for transportation to the
Metropolitan Sewerage System. At the request of the City of San Diego, a new agreement is
needed to facilitate the standardization of the agreements between the City of San Diego and the
Metro-T AC participating agencies.
ENVIRONMENTAL REVIEW
The Environmental Review Coordinator 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 proposed
action consists of a governmental fiscal activity which does not involve any commitment to any
specitlc project which may result in a potentially significant physical impact on 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 necessary.
RECOMMENDA nON
COlmcd adopt the resolution.
BOARDS/COMMISSION RECOMMENDATION
Not applicable.
4-1
10/12/10, 1tem~
Page 2 of 3
DISCUSSION
The Metro Disposal agreement ddines the telms and conditions for the use of the Metro
facilities (I.e. treatment and conveyance) while the transportation agreements define the terms
and conditions for the use of'the San Diego's municipal j~~cilities (conveyance). On September
5, 1989, Council approved by Resolution 15285 a transportation agreement wIth San Diego for
the use of the Otay Valley Trunk Sewer line (OVTS). The OVTS serves some of the properties
in the most southerly portion of the City where the City does not have wastewater facilities to
serve these properties. The properties include the Auto Park, Cricket Amphitheatre, Knotts Soak
City and The Crossings Shopping Center.
Through a coordinated emni of Metro-TAC, in which Chula Vista is a member, it was
determined that the City of San Diego had varymg temlS and conditions in the transportation
agreements that it had with some of the participating agencies. Therefore, the participating
agencies and the City of San Diego jointly decided that it would be beneficial to streamline the
transportation agreements and create a "Master Transportation Agreement" similar to the Master
Sewage Treatment agreement that would form the basis of the individual transportation
agreements. Through this process, they also began a series of negotiations to reach consensus on
the proposed fee update.
StalT has held several meetings with City of San Diego staff to craft the proposed agreement. It
was based on these discussions and other reviews, that the City of San Diego and participating
agencies, as a group, have proposed changes to the original agreement. The primary conditions
stipulated as part of the proposed agreement are summarized as follows:
Allow Chula Vista to discharge sewage into the San Diego Municipal Sewerage
System for transportation to the Metropolitan Sewerage System.
Establish a rate to be charged for sewage transportation services rendered by San
Diego to Chula Vista.
Establish Chula Vista's contract capacity in San Diego Municipal Sewerage System
for the use of a portion of the San Diego Municipal Sewerage System.
Establish a method to allocate the capital improvement project costs of future
improvements, repair, rehabilitation, or replacement to the San Diego Municipal
Sewerage System as are deemed necessary by San Diego al1d in consultation with
authorized agencies affected by the work on a fair and equitable basis.
Set this agreement to remain in full force and effect until December 31, 2050.
The contract transportation capacity that will be allocated for the use of the OVTS is separate
and distinct from the City's treatment capacity rights in the Metro system.
The San Diego Municipal Sewerage System owns the OVTS. Therefore, the agreement
presented to the City of San Diego must have been previously executed by the City of Chula
Vista. This agreement has been previously executed by other agencies within the Metro Joint
Powers Association (JP A) requiring transportation capacity rights within City of San Diego
Municipal Sewerage System facilities.
4-2
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10/12/1 0, Item 4-
. -.-
Page 3 of 3
Staffs recommendation is that Council approve this agreement to streamline efforts with the
City 0 f San Diego and to enahle the City to continue to provide sewer service to the area served'
hy the OVTS.
DECISION MAKER CONFLICT
This agreement sets the terms and conditions related to the provision of certain sewer service.
None of the decision-makers have any real property that will be served under this agreement, nor
does any have any financial interest in the contract; therefore, pursuant to California Code of
Regulations 18705.2 and California Government Code Section 1090, no conflict of interest
exists.
CURRENT YEAR FISCAL IMPACT
There is no impact to the General Fund as there are sufficient funds budgeted in the Trunk Sewer
Capital Reserve Fund to pay for the City of San Diego's capacity and transportation charges.
ONGOING FISCAL IMPACT
Under the terms of the draft agreement, the City is required to pay Transportation Costs to the
City of San Diego for the use of its facility. The cost-allocation is based on the City of San
Diego's operation and maintenance costs associated with the use of conveyance systems.
The approval of this resolution will authorize the use of Trunk Sewer Capital Reserve Funds to
pay the Monthly Capacity Charges and Transportation Costs to the City of San Diego associated
with the use of the OVTS.
ATTACHMENTS
Attachment I. Location Map
Exhibit A. Agreement between the City ofChula Vista and the City of San Diego
Prepared hi" Luis Pe/avo, Associate Civil Engmeer, Public Works Department ~ Wastewater Engineering
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FACILITIES USED BY CHULA VISTA
SEWAGE TRANSPORTATION AGREEMENT
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THE ATTACHED AGREEMENT HAS BEEN REVIEWED
AND APPROVED AS TO FORM BY THE CITY
ATTORNEY'S OFFICE AND WILL BE
FORMALLY SIGNED UPON APPROVAL BY
THE CITY COUNCIL
. cf J-C/& r
Dated: I () )-71 t.D
SEWAGE TRANSPORTATION AGREEMENT
BETWEEN
THE CITY OF CHULA VISTA AND
THE CITY OF SAN DIEGO
4-5
SEWAGE TRANSPORT A nON AGREEMENT
BETWEEN
THE CITY OF CHULA VISTA
AND
THE CITY OF SAN DIEGO
4-6
TABLE OF CONTENTS
ARTICLE 1 DEFTNITIONS.........................................................................................................1
ARTICLE 2 OWNERSHIP AND OPERATION OF THE SAN DIEGO MUNICIPAL
SEWERAGE SYSTEM ...........................................................................................4
ARTICLE 3 CONTRACT CAPACITY RIGHTS........................................................................7
ARTICLE 4 EXCEEDING CAPACITy......................................................................................8
ARTICLE 5 MONITORING ......................................................................................................1 0
ARTICLE 6 TRANSPORTATION CHARGES ........................................................................11
ARTICLE 7 OPERATION AND MAINTENANCE CHARGES FOR MUNICIPAL
PUMP STATIONS ................................................................................................12
ARTICLE 8 CAPlT AL IMPROVEMENT PROJECTS ............................................................12
ARTICLE 9 CAPITAL IMPROVEMENT CHARGES.............................................................15
ARTICLE 10 DURATION OF AGREEMENT ...........................................................................16
ARTICLE II DISPUTE RESOLUTION .....................................................................................17
ARTICLE 12 INSURANCE.........................................................................................................17
ARTICLE 13 GENERAL PROVISIONS ....................................................................................18
EXHIBIT A CONTRACT CAPACITY
EXHIBIT B FACILITIES USED BY CHULA VISTA
EXHIBITC UNIT TRANSPORTATION RATE
EXHIBIT D SEWER CROSS-CONNECTION STRUCTURES
4-7
THIS SEWAGE TRANSPORT A nON AGREEMENT is made and entered into by and
between the City of San Diego, a municipal corporation (San Diego), and the City ofChula Vista
(Chula Vista).
RECITALS
A. San Diego owns, operates and maintains the Metropolitan Sewerage System for the
purpose of treating and disposing of sewage for San Diego and certain other
municipalities and districts including Participating Agencies within the San Diego region
under the terms and conditions of the Regional Wastewater Disposal Agreement.
B. San Diego also owns, operates and maintains the San Diego Municipal Sewerage System
for the purpose of collecting and transporting sewage to the Metropolitan Sewerage
System.
C. Due to the location ofChula Vista's sewerage system it is necessary that Chula Vista use
a portion of the San Diego Municipal Sewerage System to transport its sewage to the
Metropolitan Sewerage System.
D. San Diego and Chula Vista had previously entered into a Sewage Transportation
Agreement Between the City of San Diego and the City of Chula Vista concerning the
Otay Rio Business Park, which runs concurrently with the Sewage Disposal Agreement
of 1960, under which San Diego has authorized Chula Vista to discharge sewage into the
San Diego Municipal Sewerage System for transportation to the Metropolitan Sewerage
System and under which the parties had operated.
E. The purposes of this Agreement are to: 1) allow Chula Vista to discharge sewage into the
San Diego Municipal Sewerage System for transportation to the Metropolitan Sewerage
System; 2) establish a rate to be charged for sewage transportation services rendered by
San Diego to Chula Vista; 3) establish Chula Vista's contract capacity in San Diego
Municipal Sewerage System for the use of a portion of the San Diego Municipal
Sewerage System; and 4) establish a method to allocate the capital improvement project
costs of future improvements, repair, rehabilitation, or replacement to the San Diego
Municipal Sewerage System as are deemed necessary by San Diego and in consultation
with authorized agencies affected by the work on a fair and equitable basis.
NOW, THEREFORE, in consideration of the mutual obligations of the parties as herein
expressed, San Diego and Chula Vista agree as follows:
AGREEMENT
ARTICLE I - DEFINITIONS
The singular of each defined term includes the plural. For the purposes of this Agreement, the
following definitions apply:
Page 1
City of San Diego
Sewage Transportation Agreement
City ofChula Vista
4-8
Af!encv Seweraf!e System means Chula Vista's wastewater collection system, which consists of
pipelines and pump stations, and collects wastewater within the agency and from other agencies.
Authorized Af!encv means a municipality, district, or agency which has been authorized by San
Diego to discharge sewage into the San Diego Municipal Sewerage System (SDMS) under
sewage transportation agreement(s) with San Diego.
Averaf!e Capacity means the average actual amount of discharge of sewage that Chula Vista is
allowed under this Agreement to discharge into the SDMS, averaged during a 24-hour period
from midnight to midnight in the dry season and expressed as either an average rale of flow in
cubic feet per second (cfs) or in million gallons per day (MGD) where I cfs = O. 646317 MGD.
Averaf!e Dailv Flow (sometimes referred to as ADF) means the flow from Chula Vista into those
portions of SDMS used by Chula Vista expressed as an average rate of flow in million gallons
per day (MGD) computed by dividing the total gallons discharged during the designated period
(e.g., billing period, dry season, month, etc.,) by the number of days within that same period.
Best lvlanaf!ement Practices means an engineered structure, management activity, or a
combination thereof, that eliminates or reduces an adverse environmental effect of a pollutant.
Cavit"l lmvrovement Pro/ect (sometimes referred to as ClP) means those items and activities
required by sound engineering and best management practices, including but not limited to
acquisition, planning, design, financing, and construction, for anyone or more of the following
purposes: I) to alter, change or modify the hydraulic capacity of any part or whole of any
existing SDMS facilities; 2) to improve the function and performance of any part or whole of any
existing SDtv1S facilities; 3) to add new SDMS facilities for the purpose of alterIng, changing, or
modifying the hydraulic capacity, or improving the function and performance of the SDMS; or
4) to perform a major repair On or replace any existing SDMS facilities.
Cavital Imvrovement Pro/ect Cost means costs associated with capital improvement projects.
Contract CafJacitv means the amount of sewage Chula Vista is allowed under this Agreement to
discharge into those portions of SDMS used by Chula Vista, up to the limits set forth in Exhibit
A and expressed in terms of average capacity and peak capacity. Contract capacity as defined in
this agreement shall refer to capacity only in the SDMS, and is separate and distinct from
contract capacity in the Metro system as referenced in the Regional Wastewater Disposal
Agreement.
Desif!n Cavacitv means the maximum flow which can be conveyed through a pipe segment when
the ratio of depth of the flow to the diameter of the pipe segment (diD) equals 75% for pipe
segment 18 inches or greater, or 50 % for pipe segment 15 inches or smaller. The design
capacity of a sewer line is determined based on the "length-weighted" average of design capacity
of all pipe segments in the sewer line. In the case of a pump station, design capacity means the
maximum flow that can be pumped using the main pumps, excluding the back up pumping
capacity.
Drv Season means the period from May I through September 30.
Sewage Transportation Agreement
City ofChula Vista
Page 2
City of San Diego
4-9
Fiscal Year means the period from July I through June 30.
Flow means the amount of wastewater, including inflo'W and infiltration, which is discharged
into the SDMS by San Diego, Chula Vista, or any other authorized agency. Flow may be
expressed in million gallons per day (MGD) or cubic feet per second (cfs).
Infiltration means water other than wastewater that enters a sewerage system (including sewer
service connections) from the ground through such means as defective pipes. pipe joints,
connections or manholes. Infiltration does not include, and is distinguished from, inflow.
Inflow means water other than wastewater that enters a sewerage system (including sewer service
connections) from sources such as roof leaders, cellar drains, yard drains, area drains, foundation
drains, drains from springs and swampy areas, manhole covers, cross connections between storm
sewers and sanitary sewers, catch basins, cooling towers, storm waters, surface runoff, street
wash waters, or drainage. Inflow does not include, and is distinguished from, infiltration.
LAFCO means the San Diego Local Agency Formation Commission.
Jovfetropolitan Seweraze Svstem (sometimes referred to as the A1etro Svstem) means those
facilities and contract rights to facilities which are described in the Regional Wastewater
Disposal Agreement, Document No. 00-18517, 'filed May 18, 1998, as may be amended.
Operation and lt1aintenance (sometimes referred to as 0 & M) means those items and activities
required by sound engineering and best management practices to maintain the hydraulic
capacity, function, and performance of SDMS facilities.
Operation and A1aintenance Costs means the costs of operation and maintenance including, but
not limited to, annual costs associated with administration, operation, maintenance, replacement
(non-CTP), annual premiums, claims payments and claims administration, and overhead.
Parties means San Diego and Chula Vista.
Peak Contract Cavacitv means the highest amount of discharge of sewage that Chula Vista is
allowed under this Agreement to discharge into those portions of SDMS used by Chula Vista,
measured in fifteen (IS) minute intervals and expressed as either a rate offlow in cubic feet per
second (cfs) or in million gallons per day (MGD) where I cfs = 0.646317 MGD.
Peak Flow means the highest actual instantaneous flow as measured in fifteen (15) minute
intervals at a metering device expressed as either a rate of flow in cubic feet per second (efs) or
in million gallons per day (MGD) (I cfs = 0.6463 17 MGD). In the event of a dispute, cubic feet
per second (cfs) will take precedence.
Rezional Wastewater DisDosal Azreement means the "Regional Wastewater Disposal Agreement
between San Diego and the Participating Agencies in the Metropolitan Sewerage System,"
Document No. 00- 184 I 7, filed May 18, 1998, with the Clerk for the City of San Diego as may
be amended.
Sewage Transportation Agreement
City of Chula Vista
Page 3
City of San Diego
4-10
San Diezo Municipal Seweraze Svstem (sometimes referred to as SDMS) means San Diego's
wastewater collection system, which consists of pipelines and pump stations, that collects
wastewater within San Diego and from Chula Vista and other authorized agencies and conveys it
to the Metropolitan Sewerage System for treatment and disposal.
SDAfS Facilitv means each element of the SDMS used or useful for the transportation of sewage,
including but not limited to transmission lines, force mains, trunk sewers, interceptors, and pump
stations.
Sewaze means wastewater and its commonly constituent substances.
Sewaf!e Transportation Service means the transportation of sewage from the point of discharge
into the SDMS to the Metropolitan Sewerage System.
Transportation Charf!e means the amount paid by G:hula Vista to San Diego for the
transportation of flow in the SDMS to the Metropolitan Sewerage System. This charge includes
operation and maintenance costs but does not include capital improvement project costs.
Unit Transportation Rate means the amount per unit distance (mile) of length of gravity sewer
charged for sewage transportation service.
ARTICLE 2 - OWNERSHIP AND OPERATION OF
THE SAN DIEGO MUNICIPAL SEWERAGE SYSTEM
2.1 Rights of the Parties. San Diego is the owner of the SDMS and of any additions to the
SDMS or other facilities constructed pursuant to this Agreement. All decisions with respect to
the planning, design, construction, operation and maintenance of the SDMS shall rest with San
Diego. rfChula Vista's contractual right to use the SDMS is adversely impacted by the
planning, design, construction, operation and maintenance of any part of SDMS, Chula Vista
shall have the right to review and comment on these issues prior to any modifications to the
subject portions of the SDMS. However, Chula Vista shall only have a contractual right to use
the SDMS as set forth in this Agreement.
2.1.1 Change in Ownership. Subject to the terms ofthis Agreement, and in conformance
with all applicable laws, San Diego may transfer ownership of all or part of the SDMS at
any time. San Diego shall not transfer or agree to transfer any part of the SDMS
transporting sewage from Chula Vista without reserving Chula Vista's rights granted by
this Agreement. In the event ofa transfer, San Diego's successor in interest shall be
bound by the terms of this Agreement.
2. 1.2 Assignment of Rights. Subject to the terms ofthis Agreement, Chula Vista may
transfer or assign its rights and obligations under this Agreement. Any such transfer must
first, however, be approved by San Diego by written agreement. Chula Vista may not
transfer its rights if San Diego determines, after consultation with Chula Vista, that the
proposed transfer will imbalance, or will otherwise adversely impact San Diego's ability
to operate the SDMS or the Metro System. .
Sewage Transportation Agreement
City of Chula Vista
Page 4
City of San Diego
4-11
2.2 Duties of San Diego. Subject to the terms of this Agreement, San Diego agrees to provide
sewage transportation services to Chula Vista for the contract capacity set forth in Exhibit A.
2.2.1 Operation. San Diego shall operate the SDMS in an efficient and economical
manner, and maintain it in good repair and working order, all in accordance with
recognized sound engineering and best management practices. San Diego shall comply
with all applicable laws, rules and rcgulations.
2.2.2 Funds. San Diego shall collect and receive all money paid under this Agreement in
connection with the SDMS and disburse all money spent in connection with the SDMS.
2.3 Funding Obligations. Nothing in this Section or in this Agreement shall obligate San Diego
to make any payment for the acquisition, construction, maintenance or operation of the SDMS
from monies derived from taxes or from any income and revenue of San Diego other than
monies in, or sewer revenues which go into, the Sewer Revenue fund for the SDMS, and from
construction funds derived from the sale of sewer revenue bonds or other sources of sewer
funding for the SDMS as are duly authorized. Nothing in this Agreement shall be construed to
obligate San Diego to pay from its annual income and revenues any sum that would create an
indebtedness, obligation or liability within the meaning of the provision of Section 18 of Article
XVI ofthe Constitution ofthe State of California or Section 99 of the San Diego City Charter.
Nothing in this Section, however, or in this Agreement shall prevent San Diego, in its discretion,
from using tax revenues or any other available revenues or funds of San Diego for any purpose
for which San Diego is empowered to expend monies under this Agreement. Nothing in this
Agreement shall be construed as a limitation upon the powers of the City of San Diego as a
Charter City of the State of California.
2.4 Financial Statements. San Dieg~shall keep appropriate records and accounts of all costs
and expenses relating to the collection and conveyance of sewage and the acquisition, planning,
design, construction, administration, monitoring, and operation and maintenance of the SDMS.
2.4.1 Right to Audit. Upon written request, said books and records shall be subject to
reasonable inspection by any duly authorized representative of Chula Vista at its expense.
Chula Vista may audit these records for a three fiscal year period previous to its request,
at its own expense.
2.4.2 CAFR. San Diego shall make its Comprehensive Annual Financial Report as it
relates to the SDMS available to Chula Vista.
2.5 Limitations on Tvpe and Condition of Sewage. Chula Vista shall not discharge or allow to
be discharged, any sewage or wastes into the SDMS which do not meet the standards established
by appropriate San Diego ordinances, resolutions, rules and regulations. Chula Vista shall also
comply with all applicable statutes, rules and regulations of all agencies of the United States of
America, including the Environmental Protection Agency, and all agencies of the State of
California having jurisdiction over the collection, transmission, treatment and disposal of sewage
and other wastes in the' SDMS.
Sewage Transportation Agreement
City of Chula Vista
Page 5
City of San Diego
4-12
2.5.1 Excessive Inflow or Infiltration. Chula Vista shall not allow, to the extent
practicable, excessive inflow and infiltration to be discharged into the SDMS. For
purposes ofthis Section, "excessive" means any amount that causes Chula Vista to
exceed the limit of peak capacity set forth in Exhibit A.
2.5.2 Compliance with Laws. Chula Vista shall not allow, to the extent practicable, the
discharge of any waste, pollutant, inflow, or infiltration into the SDMS that is prohibited
by ordinances, resolutions, rules, or regulations of the United States of America.
including the Environmental Protection Agency, the State of California, and San Diego
having jurisdiction over the collection, transportation, treatment and disposal of sewage
and other wastes in the SDMS. This Section does not prohibit Chula Vista fram
operating the cross-connections identified in Exhibit D, provided Chula Vista applies for
and receives a permit(s) for industrial wastewater discharge from San Diego and
complies with the terms and conditions of said permit(s), including the payment of any
fees or costs associated with the permit. Continued operation of the cross-connections is
also contingent on approval by State and Federal regulatory agencies, whose permission
San Diego will request collectively for all agencies with flow that enters the Metro
System. As a ministerial matter, Exhibit D may be amended from time to time by Chula
Vista and San Diego, provided any additional cross-connections meet the requirements of
this section and the total flow from Chula Vista remains at or below the contract capacity.
2.5.3 Imported Sewage. Chuhi Vista shall not discharge any sewage originating outside
the boundaries of Chula Vista into the SDMS without the prior written consent of San
Diego except for sewage from recreational vehicles. motor homes, trailers, or from
businesses that pump sewage from private septic systems, that otherwise complies with.
the requirements of this Agreement.
2.5.4 Enforcement Actions. If a regulatory agency with appropriate jurisdiction imposes
any penalty or takes other enforcement action related to the transportation of sewage or
other matter in or from the SDMS, San Diego shall dctermine, in active consultation with
impacted parties, whether San Diego, Chula Vista, or any other authorized agency caused
or contributed to such penalty or enforcement action. Based on this determination, San
Diego shall allocate the penalty or other relief, including the cost of defense, to the party
or parties responsible. Each responsible party, whether San Diego, Chula Vista, or
another authorized agency, shall pay its share of the penalty or other relief, and any costs
of defense as reasonably determined by San Diego in active consultation with impacted
parties. If San Diego cannot make an allocation based on responsibility, the cost of the
penalty or other relief shall be shared by San Diego, Chula Vista, and any other
authorized agency involved based proportionately on their respective average daily flow
into the SDMS.
2.5.5 Rock Traps. After consultation with San Diego, Chula Vista shall be required to
install rock trap screens at sites connecting to the SDMS. San Diego shall request the
installation of rack traps in writing and shall allow a minimum of 120 days for
installation after the initial request is made.
Sewage Transportation Agreement
City of Chula Vista
Page 6
City of San Diego
4-13
2.5.6 Odor Control. If San Diego determines that flow from Chula Vista is causing
unreasonably high concentrations of hydrogen sulfide gas in the SDMS, or is a source of
unreasonably noxious odors, Chula Vista shall take reasonable steps within the agency
sewerage system necessary to eliminate such concerns, such as pre-treating the flow with
chemicals to reduce the formation of hydrogen sulfide.
ARTICLE 3 - CONTRACT CAPACITY RIGHTS
3.1 Amount of Contract Capacity. In consideration of the terms and conditions ofthis
Agreement, Chula Vista shall have a contractual right to discharge sewage into the SDMS up to
the contract capacity described in Exhibit A, provided, however, this shall not confer on Chula
Vista the right to discharge any substances otherwise prohibited by this Agreement into the
SDMS. Flow from any cross-connections identified in Exhibit D is counted against the contract
capacity granted by this Agreement.
3.2 Proiected Flow and Capacity Report. On or before September 30th of each year during the
term of this Agreement and upon the request of San Diego, Chula Vista shall provide San Diego
with a ten-year projection (by fiscal year) of its average daily flow for dry season, peak flow and
capacity requirements. in those portions of the SDMS uscd by Chula Vista. Thc peak flow
projection'should be bas,~cl on,'theten-y~ar return \Yet weather flow estimation. If at any time
during the ten-year projection Chula Vista isprojectcd to exceed its average and/or peak capacity
allotted under its contract capacity, Chula Vista shall develop and submit a plan of action and an
implementation schedule to San Diego for its approval' and acceptance. At a minimum, the plan
shall. describe Chula Vista's future needs for contract capacity for the next ten (10) years and if
necessary, propose mitigation. measures which may be required of Chula Vista to facilitate its
Juture needs for capacity including but not limited to incr,eases in capacity through capital
improvement projects or taking other measures such' as the construction of peak flowretention
structures or re-use facilities to reduce Chula Vista's flow into the SDMS.
3'.2.1 San Diego Review. In the event that.San Diego disagrees with the ten-year
projection, the plan of action, or the implementation schedule provided by Chula Vista,
the parties shall meet in good faith and attempt to reconcile their differences for a period
not to exceed six months from the date Chula Vista submits its peak flow projection. If
the parties fail to reach an agreement after six months, San Diego may independently
develop a notice of determination and proceed with the procedure set forth in Section
8.2.2.
3.3 Other Planning Information. On or before September 30th of each year during the term of
this Agreement and upon the request of San Diego, Chula Vista shall also provide San Diego
with a 50-year projection (by fiscal year) of its average daily flows for dry season in those
portions of SDMS used by Chula Vista.
3.4 Requests for Additional Contract Capacity. If Chula Vista desires to purchase additional
contract capacity and San Diego is willing to sell additional capacity pursuant to Section 4.2.2, or
to create additional contract capacity pursuant to Section 8.2.2 of this Agreement, Chula Vista
agrees to pay transportation charges for the additional flow, as well as Chula Vista's
Sewage Transportation Agreement
City of Chula Vista
Page 7
City of San Diego
4-14
proportionate share of capital improvement project costs for existing or new SDMS facilities as
may be necessary to provide the additional contract capacity. The decision of whether to sell or
create additional contract capacity for Chula Vista. however, shall be at the sole discretion of San
Diego. Chula Vista agrees to submit a written request to obtain and purchase the additional
capacity needed in accordance with the procedures set forth .in Article 8 of this Agreement.
3.5 Transfers of Contract Capacitv. Chula Vista may buy, sell or exchange all or part of its
contract capacity to or from San Diego or other authorized agencies on such terms as they may
agree upon provided that San Diego shall be notified prior to any transfer. Any transfer shall be
first approved in writing by San Diego. No contract capacity may be transferred if San Diego
determines, after consultation with Chula Vista, that said transfer will unbalance, or will
otherwise adversely impact San Diego's ability to operate any SDMS facility or the Metro
System. As a ministerial matter, San Diego shall amend Exhibit A from time to time to reflect
approved transfers of contract capacity, and provide Chula Vista with an updated exhibit.
ARTICLE 4 - EXCEEDING CAPACITY
4.1 Limitations on Capacitv. During the term of this Agreement, Chula Vista shall have the
right to discharge sewage into the SDMS in an amount not to exceed its contract capacity set
forth in Exhil?it A. San Diego is not obligated to receive from Chula Vista, nor is Chula Vista'
privileged.to discharge into the SDMS, any amounts.inexcess ofChula Vista's contract capacity'
permitted under .this Agreement.
4.2 Good-Faith Contract Capacitv Discussions. The parties recognize that appropriate capacity.
and long term planning are essential for the proper provision of sewage transportation service.
Theparties. further recognize that it is very difficult to forecast and measure the resulting damage
to San Diego. and the SDMS ifChula Vista exceeds its contract capacity. Therefore, if San.
Diego notifies Chula Vista that it has excecded its contract capacity, either average capacity or
peak capacity as set forth in Exhibit A, at any time during five or more days (from midnight to
midnight) in any consecutive 90 day period, Chula Vista shall develop and submit a plan of
action and an implementation schedule to San Diego for its approval and acceptance. At a.
minimum, the plan shall describe how Chula Vista proposes to stay within its contract capacity
or how Chula Vista proposes to increase its contract capacity in the SDMS. Chula Vista's
proposals may include, but are not limited to, increasing available capacity through participation
in SDMS capital improvement projects, purchasing or transferring capacity from San Diego or
an authorized agency, taking other measures such as the replacement of Chula Vista system
components experiencing infiltration and inflow and/or construction of peak flow retention
structures or re-use facilities to reduce Chula Vista's flow into the SDMS.
4.2.1 San Diego Review. In the event that Chula Vista fails to submit the
aforementioned plan of action and implementation schedule within six (6) months of the
date Chula Vista is notified by San Diego, or if San Diego reasonably determines that the
submitted plan and schcdule are insufficient or untimely to adequately address the matter,
San Diego shall independently develop a notice of determination pursuant to Section
8.2.2.
Sewage Transportation Agreement
City of Chula Vista
Page 8
City of San Diego
4-15
4.2.2 Cost of Additional Cavacitv. In the event that sufficient capacity is available in
existing infrastructure, such capacity may be made available to Chula Vista, at the
discretion of San Diego, upon payment commensurate with the required additional
capacity. In addition to the transportation charge for the additional flow, Chula Vista
shall pay its proportionate share of capital improvement project costs for existing SDMS
facilities used by Chula Vista under this Agreement, including but not limited to the types
described in Article 8. Chula Vista's additional share of capital improvement project
costs shall be based upon the relative additional amount ofChula Vista's peak capacity as
it relates to the design capacity of the respective SDMS facilities according to the
following formula:
Chula Vista's estimated share of capital improvement project costs = (NB) x C
Where:
"A" is Chula Vista's additional peak capacity;
"B" is the design capacity of the SDMS facilities; and
"C" is the capital improvement project cost of the SDMS facilities,
expressed as the original cost unless the facilities had been rehabilitated, in
which case the cost of rehabilitation shall be added to the original cost. In
,. ' . .
, the case of replacement, the replacement cost shall be used in l.ieu, of the
original cost for the portion of the facility that has been replaced.
'r
J
4.3 No Limitation ofMunicinal Powers. San Diego has sole discretion to determine how to
operate the SDMS in a safe, etlicient and environmentally sound manner to avoid any risk to the
health, safety and welfare of the public. Therefore, nolhing in this Agreement shall be construed
as precluding. or limiting SanDiego from taking any action reasonably necessary to prevent flow
from Chula Vista from endangering the health, safety, or welfare of the residents of the City of
San Diego. ,
4.4 Diversion of Flow. Nothing in this Agreement shall preclude Chula Vista from diverting all
or part of its flow from the SDMS. However, prior to such diversion, Chula Vista shall notify
San Diego in writing at least six (6) months in advance and enter into an agreement with San
Diego that, at a minimum, will require Chula Vista to pay its proportionate share of outstanding
capital improvement project costs, if payment of such outstanding costs upon diversion of flow is
not already addressed by separate agreement pursuant to Sections 8.2.1.3 or 8.2.2.3. Chula Vista
will also be responsible for all transportation charges owed by Chula Vista up to the time of
diversion.
I
I
I.
4.4.1 No Refunds. In no event shall Chula Vista's diversion of all or part of its flow
from the SDMS entitle Chula Vista to any refund of previously remitted payments for
capital improvement project costs, or forgiveness of amounts owed, if any, to San Diego
for existing or increased contract capacity. Chula Vista shall, however, retain such
contract capacity and may transfer such capacity rights to another authorized agency,
subject to San Diego's approval. Chula Vista's contract capacity may be reduced or
eliminated by future capital improvement projects:
Sewage Transportation Agreement
City of Chula Vista
Page 9
City of San Diego
4-16
4.4.1.1 If a capital improvement project replaces a facility in which Chula Vista
has contract capacity, Chula Vista's contract capacity is extinguished.
4.4.1.2 If a capital improvement project rchabilitates a facility in which Chula
Vista has contract capacity, Chula Vista's contract capacity is reduced in
proportion to the amount that the capital improvemcnt project cost, when added to
the original cost of the facility, reduces Chula Vista's proportionate share ofthe
total cost of the facility.
4.4.2 Reserving Future Caoacitv. IfChula Vista diverts all or part of its flow from the
SDMS, Chula Vista may reserve its existing contract capacity by paying its proportionate
share of future capital improvement projects in accordance with Article 9, based on the
contract capacity being reserved. San Diego may decline to reserve contract capacity
only if San Diego reasonably determines that reserving contract capacity will have a
material adverse effect on the operation, maintenance, or useful life of the facility or the
SDMS.
4.4.3 Re-Introduction of Flow. If Chula Vista intcnds to re-introduce flow previously
diverted pursuant to Section 4.4, other than on an emergency basis, Chula Vista shall
notify San Diego in writing at least six.(6) months in advance ofre-introducing the flow
into theSDMS.
4.5 Fines and Penalties, Chula Vista shall be responsible for the violation of any applicable
laws, rules, or regulations associated with its discharge of flow into Jhe SDMS. In thc eventa
regulatory agency imposes any penalty or takes other enforcement action relating to the
conveyance of flow through.a SDMS facility listed in Exhibit B, San Diego shall determine
" whether .itself or an authorized agency or agencies caused or contributed to such penalty or .
enforcement actions. San Diego shall allocate the penalty or other relief, including the costs of
defense, to the authorized agency or agencies responsible. Each responsible party, whether an
authorized agency or San Diego, shall be obligated to pay its share of such penalty or other
relief, and 'any costs of defense. In the event that San Diego cannot make such an allocation, the
cost of such penalty or other relief shall be shared by all authorized agencies, including San
Diego, using the SDMS facility proportionately based on the amount of flow.
ARTICLE 5 - MONITORING
5.1 Flow Monitoring Devices. In most cases, flow monitoring devices are already installed and
paid for through the Regional Wastewater Disposal Agreement. If San Diego and/or Chula Vista
determine that additional flow monitoring devices are nceded beyond any Metro System flow
monitoring devices, San Diego shall own and operate the flow monitoring devices as part of the
Metro System monitoring devices and allocate costs as identified in the Regional Wastewater
Disposal Agreement.
5.2 Eauioment Maintenance. San Diego shall operate, maintain, manage and control the flow
monitoring device(s) in an efficient and economical manner and preserve them in good repair
and working order, all in accordance with recognized and sound engineering practices. San
Diego shall provide flow reports to Chula Vista on a regular basis but not less frequently than
Sewage Transportation Agreement
City of Chula Vista
Page 10
City of San Diego
4-17
quarterly. Upon written request. San Diego shall provide Chula Vista with the record of the field
calibration for any meters in question. Chula Vista shall have access to the electronic files.
5.3 Unmonitored Flows. Where the transported sewage is not monitored, San Diego and Chula
Vista shall mutually agree upon the estimated amount of flow gcnerated from such service areas.
If such an agreement cannot be made, the dispute shall be resolved pursuant to the dispute
resolution procedure set forth in Article II of this Agreement. Chula Vista shall keep current
and accurate records of the number and types of structures for evaluation of gallons per day for
flow into the SDMS lines. Such records shall be made available for San Diego upon written
request.
ARTICLE 6 - TRANSPORTA nON CHARGES
6. I Transportation Charge. San Diego shall charge and Chula Vista shall pay a transportation
charge at the unit transportation rate, set forth in Exhibit C, per million gallons of flow for each
mile such flow is transported in the SDMS.
6.1.1 Adiustments for Inflation. As a ministerial matter, this rate shall be adjusted
annually for inflation in accordance with the State of California Economic Forecast Index
for the most recent year ending December 31. Revised rates shall take effect July I of the
following year. [n 110 event will the rate be adjusted more ,frequently than once each
fiscal year.
I
I
6.1.2 Periodic Adiustments. The unit transport:jtjon rate will be reviewed by San Diego
every five (5) years, commencing from the date of its finalization, to ensure that it does
. not .de\ii:jte. substantiallY from actual costs incurred by San Diego for operation and
maintenance of the SDMS. utilized by Chula Vista. SanDiego will adjust the unit
transportation.rate in accordance with either of the following methods:
6.1.2.1 San Diego will determine the average of the actual costs for the previous
three (3) years, based on the formula and calculations used to devise the current
transportation rate. [fthe average actual costs for the three-year period would
have resulted in a transportation rate that is more than five percent (5%) less than
or greater than the transportation rate being applied at the time of the analysis, the
rate will be adjusted to an amount equal to the three-year average of actual
expenses on the next scheduled increase date.
6.1.2.2 San Diego may conduct or procure, at its sole cost and expense, a cost of
service study to determine the appropriate unit transportation rate. The unit
transportation rate shall be adjusted in accordance with the results of the study on
the next scheduled increase date. If Chula Vista objects to the adjustment
recommended by the study, the matter shall be resolved pursuant to the dispute
resolution procedure set forth in Article II of this Agreement.
6. 1.3 Other Adiustments. Notwithstanding the above, San Diego may adjust the unit
transportation rate at any time if a change in federal, state, or local laws or regulations, a
Sewage Transportation Agreement
City of Chula Vista
Page 11
City of San Diego
4-18
court order, or an order from a regulatory agency materially affects the cost of providing
sewage transportation service. In consultation with Chula Vista, San Diego will adjust
the unit transportation rate to reflect the actual cost to San Diego. effective the beginning
of the next billing period. If Chula Vista objects to the adjustment determined by San
Diego, the matter shall be resolved pursuant to the dispute resolution procedure set forth
in Article I I of this Agreement.
6.1.4 Updating Exhibit C. As a ministerial matter, and provided it has followed the
procedures set forth herein, including any dispute resolution procedure, San Diego shall
amend Exhibit C from time to time to reflect adjustments to the unit transportation rate,
and provide Chula Vista with an updated exhibit.
6.2 Billing. San Diego shall bill Chula Vista on a quarterly basis for transportation charges no
later than ninety (90) days after the end of the quarter to which the billing applies. Payment shall
be made by Chula Vista to San Diego within thirty (30) days of receipt of the billing and shall be
considered delinquent fifteen (15) days thereafter. Late payments shall accrue interest at a rate
often (10) percent per annum.
6.3 Pavment Disputes. No payment shall be withheld by Chula Vista because of a dispute as to
itsamOlint.' Disputed payment shall be made with a notation as to the portion in dispute.
Payment disputes shall be resolved'pursuant to the dispute resolution procedure set forth in
Article 11 of this Agreement. Any amount determined to have been improperly allocated to
Chula Vista resulting in an overpayment shall be adjusted by San Diego as a credit to thehext
invoice f'Ollowing such'determinatlon, and shall accrue interest at a rate often (10) percent per
,annum,,calculated from the date paid by Chula Vista. In the event that the improper allocation to
Chula Vista resulted in an Jmderpayment, such' amount shall be adjusted by San Diego as a debit
to the next invoice followiilg such determination.
ARTICLE 7 - OPERATION AND MAINTENANCE CHARGES
FOR MUNICIPAL PUMP STATIONS
This Article does not apply to Chula Vista.
ARTICLE 8 - CAPITAL IMPROVEMENT PROJECTS
8.1 Planning. Chula Vista and San Diego shall prepare the following plans and projections for
one another to forecast future improvements that may be necessary to the SDMS:
8.1.1 Chula Vista Plans. In accordance with Sections 3.2 and 3.3 of this Agreement,
Chula Vista shall provide San Diego with the projections (by fiscal year) of its flows and
contract capacity requirements in those portions of the SDMS used by Chula Vista.
Chula Vista shall also advise San Diego of any plans to acquire capacity outside the
SDMS. This "Projected Flow Capacity Report" shall be updated annually. Chula Vista
shall also provide San Diego with such additional information requested by San Diego as
necessary for SDMS planning purposes.
Sewage Transportation Agreement
City of Chula Vista
Page 12
City of San Diego
4-19
8.1.2 San Diego Plans. San Diego shall prepare a Ten Year Municipal Capital
Improvement Plan for the SDMS that describes facilities necessary to convey all flows in
compliance with applicable rules, laws.andregulations. These Plans shall be updated
annually. San Diego shall solicit and consider,. in good faith, comments from Chula Vista
on the Capital Improvement Plan for those portions of the SDMS in which Chula Vista
has contract capacity or Chula Vista is negotiating additional contract capacity.
8.2 Capital Improvement Proiects. Chula Vista and San Diego are obligated to pay for capital
improvement projects for the SDMS that are needed to maintain existing contract capacity or to
provide new contract capacity under the terms below, provided, however, that the decision
whether or not to construct a capital improvement project shall be at the sole discretion of San
Diego. As a ministerial matter, and provided San Diego has proceeded in the manner set forth in
this Article 8, and the dispute resolution process found in Article II, herein, San Diego shall
amend Exhibit B from time to time to reflect future capital improvement projects in the list of
SDMS facilities used by Chula Vista, and provide Chula Vista with an updated exhibit.
8.2.1 Maintenance of Existing Contract Capacitv. As part of its planning efforts and the
needs of the SDMS, and considering the planning information provided to San Diego by
Chula Vista, San Diego shall determine when capital improvement projects will be
. necessary to maintain Chula Vista's existing contract capacity and the efficiency of the
" SDMS,
8.2.1.1 San Diego's determination shall be made following active' and meaningful
consultation between San Diego and Chula Vista. This determination shall be
based on: (1) the type and location of any capital improvement projects necessary;
(2) the projected costs of any necessary capital improvement projects; and (3) the
allocation of the cost of any such capital improvement projects to Chula Vista and
San Diego calculated pursuant to Section 9.2. San Diego shall then prepare a
notice of determination setting forth its conclusions and send said notice of
determination to Chula Vista.
8.2.1.2 Chula Vista shall have six (6) months from the date of the notice of
determination within which to either: (1) comment on or challenge all or part of
San Diego's determination; (2) agree to the determination; or (3) commit, in
writing, to obtain new sewage transportation services outside of the SDMS as
described below. If Chula Vista objects to San Diego's determination, Chula
Vista shall have the burden to commence and diligently pursue the formal dispute
resolution procedures of Article] 1 of this Agreement. IfChu]a Vista fails to
initiate dispute resolution within ninety (90) days after the expiration of the time
to respond to the notice of determination set forth herein, San Diego's
determination shall become final and binding on Chula Vista, and Chula Vista
agrees to pay the capital improvement project costs and transportation charge set
forth therein,
8.2.1.3 If San Diego and Chula Vista agree on the capital improvement projects
necessary to maintain existing contract capacity, San Diego and Chula Vista shall
Sewage Transportation Agreement
City of Chula Vista
Page 13
City of San Diego
4-20
enter into an agreement specifying the terms and conditions pursuant to which the
capital improvement projects shall be undertaken. The agreement shall provide
that Chula Vista.shall reimburse San Diego for its proportionate share of any
capital improvement project costs accruing to Chula Vista to maintain existing
contract capacity.
8.2.2 Capital Improvement Proiects to Provide Additional Contract Capacitv. San Diego
shall also, as part of its planning efforts, and considering planning information provided
to San Diego by Chula Vista, determine the adequacy of Chula Vista's contract capacity
or consider requests for additional contract capacity by Chula Vista.
8.2.2.1 San Diego's determination shall be made following active and meaningful
consultation with Chula Vista. If San Diego determines that Chula Vista requires
additional contract capacity or agrees that it is able to provide additional contract
capacity as requested by Chula Vista, San Diego shall conduct a study to
determine the following: (l) the amount of additional contract capacity needed or
which may be provided; (2) the type and location of any capital improvement
projects necessary to provide additional contract capacity; (3) the projected costs
of any necessary capital improvement projects; and (4) the allocation of the cost
'of any suell capital 'improvement projects calCulated pursuant to Section 9.2. San
Diego shall then prepare a notice of determination setting forth its conClusions
and send said notice of determination to Chula Vista. .
8:2:2.2 Chula Vista shall have six (6) months from the date of a notice of
dctermination within which to either: (l) comment on or challenge all or part of
San DiegO's determination, (2)agree tothc determination or (3) to commit, in
writing, to obtain new sewage transportation services outside' of the SDMS as
described below; however, if San Diego's notice of determination was issued in
response to Chula Vista's plan of action and implementation schedule set forth in
Section 4.2, Chula Vista shall respond within sixty (60) days of the date of the
notice of determination. If Chula Vista objects to San Diego's determination,
Chula Vista shall have the burden to commence and diligently pursue the dispute
resolution procedures of ArtiCle 11 of this Agreement. If Chula Vista fails to
initiate dispute resolution within ninety (90) days after the expiration of the time
to respond to the notice of determination set forth herein, San Diego's
determination shall become final and binding on Chula Vista, and Chula Vista
agrees to pay the capital improvement project costs and transportation charge set
forth therein.
8.2.2.3 If San Diego and Chula Vista agree on the capital improvement projects
necessary to increase contract capacity, San Diego and Chula Vista shall enter
into an agreement specifying the terms and conditions pursuant to which the
capital improvement projects shall be undertaken. The agreement shall provide
that Chula Vista shall reimburse San Diego for its proportionate share of any
capital improvement project costs accruing to Chula Vista to increase contract
capacity.
Sewage Transportation Agreement
City ofChula Vista
Page 14
City of San Diego
4-21
8.3 Option to Divert Flow. Notwithstanding the foregoing, upon notice of San Diego's
determination regarding additional capacity Chula Vista may choose, at its sole discretion, to
divert all or part of its now from the SDMS pursuant to Section 4.4.
ARTICLE 9 - CAPITAL IMPROVEMENT CHARGES
9.1 Charges for Existing Facilities. The Parties agree that no reimbursements are due from
Chula Vista to San Diego for existing facilities which are used by Chula Vista for the
transportation of its sewage through the SDMS.
9.2 Calculation of Capital Improvement Proiect Costs for Future Facilities. In addition to the
transportation charge, Chula Vista shall pay its proportionate share of capital improvement
project costs for SDMS facilities constructed in the future for, or used by, Chula Vista under this
Agreement including but not limited to the types described in Article 8. Capital improvement
projects, their estimated costs, and the proportionate share of expenses for Chula Vista shall be
included as addendums to this Agreement as they are initiated. Final, actual costs shall be used
for billing Chula Vista. Chula Vista's share of future capital improvement project costs shall be
based upon the relative amount of Chula Vista's peak capacity as described in Exhibit A and as it
. Jclates to the design capacity of the respective SDMS facilities, according to the following
". formulas:
Where:
"A" is Chula Vista's peak capacity;
"B" is the design capacity oftheSDMS facility;
"C" is the estimated capital improvement project costofthe SDMS
facility constructed for:or used by Chula Vista;
"0" is the remaining useful life of the existing SDMS facility; and
"E" is the estimated useful life of the new SDMS facility.
9.2.1 Capital Improvement Proiects for Both Parties. For new SDMS facilities, or for
repair, rehabilitation, or replacement of SDMS facilities that have reached the end of their
useful life, or if replacement ofSDMS facilities is needed to increase the design capacity
because of an increase in flow from both Chula Vista and San Diego, Chula Vista's
estimated share of capital improvement project costs = (AlB) x C.
9.2.2 Capital Improvement Proiects for San Diego. For replacement of SDMS facilities
that have not reached the end of their useful life, to increase the design capacity, due
solely to an increase in flow from San Diego and/or other involved agencies, Chula
Vista's estimated share of capital improvement project costs - (AlE) x C x ((E-D)/E).
9.2.3 Capital Improvement Proiects for Chula Vista. For replacement of SDMS facilities
that have not reached the end of their useful life, to increase the design capacity, due
solely to an increase in flow from Chula Vista, Chula Vista's estimated share of capital
improvement project costs = C - [{(B - A)/B) x C x ((E-D)/E)].
Sewage Transportation Agreement
City of Chula Vista
Page 15
City of San Diego
4-22
9.3 Billing. San Diego shall bill Chula Vista for its share of capital improvement costs as
described above. Billings for design and subsequent project costs shall be issued immediately
,following the City's remittance for. payment of same. The billings shall be in an amount equal to.
Chula Vista's share of the amount expended on the capital improvement project during the
relevant invoice period based on the formula described above. Payment shall be made within
thirty (30) days of receipt of the billing and shall be considered delinquent fifteen (15) days
thereafter. Late payments shall accrue interest at ten (10) percent per annum. No payment shall
be withheld by Chula Vista because of a dispute as to its amount. Disputed payments shall be
made with a notation as to the portion in dispute. Payment disputes shall be resolved pursuant to
the dispute resolution procedure set forth in Article II of this Agreement. Any amount
determined to have been improperly allocated to Chula Vista shall be issued to the Chula Vista
as a refund plus ten (10) percent interest calculated per annum from the date the disputed
payment was made by Chula Vista within thirty days following such determination.
ARTICLE 10 - DURATION OF AGREEMENT
10.1 Effective Date. This Agreement shall become effective thirty days after execution by San
. Diego and Chula Vista.
10.2 Term of Agreement. Subjectto the rights and obligations set forth inSections]0.3,JO.4.c
and 10.5 below, this Agreement shall expire on December 31, 2050 or upon tbe expiration or
termination of the Regional Wastewater Disposal Agreement, whichever occurs first. Any
outstanding obligation of Chula Vista to pay its proportionate share of capital improvement
project costs shall survive termination of this Agreement prior to December 31, 2050.
',. 103 Extension of Agreement. This Agreement is subject to extension by agreement of the
. parties. The parties shall commence discussions on an agreement to provide sewage
transportation services beyond the year 2050 on or before December 31, 2040.
10.4 . Contract Termination. If in the future, Chula Vista is able to obtain alternate sewage
. transportation services, Chula Vista may divert some or all of its flow from the SDMS pursuant
to Section 4.4. This Agreement shall terminate ifChula Vista's contract capacity in the SDMS is
extinguished pursuant to Section 4.4.1.1 and Chula Vista does not reserve contract capacity
pursuant to Section 4.4.2.
10.5 Abandonment. San Diego may cease operation and maintenance of all or part of the
SDMS upon delivery of notice to Chula Vista ten (10) years in advance of said abandonment.
Upon notice by San Diego to abandon the SDMS, 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 resolved pursuant to the dispute resolution procedure set forth in Article I I of this
Agreement. In the event of abandonment, San Diego shall retain ownership of all SDMS assets
free from any claim of Chula Vista.
Sewage Transportation Agreement
City of Chula Vista
Page 16
City of San Diego
4-23
ARTICLE I I - DISPUTE RESOLUTION
.11.1 Application. This. Article shall govern all disputes arising out of this Agreement.
11.2 Mediation. Upon de livery of a written request for mediation to the other party involved.
any dispute concerning this Agreement may be submitted to a mutually acceptable mediator.
The decision of the mediator shall not be final or binding unless otherwise agreed to in writing
by the parties.
11.2.1 Condition Precedent to Litigation. Mediation shall be required before either party
may proceed to litigation or any other method of dispute resolution. If a mediation
session has not been held within ninety (90) days after written request for mediation has
been received by either party, the party requesting mediation may proceed to litigation
unless the period for mediation has been extended by mutual written agreement between
the parties.
,.,; "
11.2.2 Costs. The expenses of witnesses for either side shall be paid by the party
producing such witnesses. All other expenses of the mediation, including required
traveling and other expenses of the mediator, and the cost of any proofs or expert advice
produced at t1ie direct request of the mediator, shall be borne equally by the parties,
unless theyagree' otherWise. ... .. ... ... ". . . .
I I .2.3 Evidence. All mediation pr~ceedings, resllltsand documentation, shall be non~
. binding .a!1d inadmissible for any purpose in any legal proceeding (purSUaI;t to Califo\TIi:i
Evidence Code Sections 1115 through 1128), unless such admission is otherwise agreed
upon.il;l writing by.,bpth p;\rtics. M~diators shalll;lot be subject to any subpoena or
liability, and their actions shall not be subject to'discovery.
11.3 Performance Required During Dispute. Nothing in this Article shall relieve either San
Diego or Chula Vista from its obligation to perform all of their obligations under this Agreement.
San Diego andChula Vista 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.
ARTICLE 12 - INSURANCE
12.1 San Diego Shall Maintain All Required Insurance. San Diego shall maintain all insurance
required by law.
12.1.1 Workers' Compensation Insurance. San Diego is currently self-insured for
Workers Compensation for all San Diego employees.
12.1.2 Public Liabilitv Insurance. San Diego is currently self-insured for its public
liability insurance, which includes general liability and automobile liability coverage for
property damage and bodily injury claims. San Diego budgets annually for its selt~
administered claims program handled through the Risk Management Department.
Page 17
City of San Diego
Sewage Transportation Agreement
City of Chula Vista
4-24
Claims are processed and administered in accordance with the California Government
Code Sections 900 et seq.
12.2 Substantiallv Equivalent Coverage. If the SDMS is transferred to another entity pursuant
to Article 2, coverage substantially equivalent.to all the above provisions shall be maintained by
any successor in interest.
ARTICLE 13 - GENERAL PROVISIONS
13.1 Force Maieure. In the event performance under this Agreement is delayed due to causes
which are outside the control of the Parties and their agents, and could not be avoided by the
exercise of due care, which includes but is not limited to war, terrorist attack, act of God,
government regulations, labor disputes, strikes, fires, floods, adverse weather, or inability to
obtain materials, labor or equipment, both Parties will be entitled to an extension in time of
performance equivalent to the length of delay.
13.2 Governing Law. This Af,'Teement is intended to be construed pursuant to the laws of the
State of California. In addition, parties agree that this Agreement has been entered into in San
. Diego County and concerns subject matter located in San Diego County.
13.3 Notices. All notices required to be given under this Agreement must be in writing and
either served personally or mailed by certified mail, return reccipt requested to:
I
,City of Chula Vista
City Engineer
276 Fourth Avenue
Chula Vista, CA 91910
City of San Diego
Director of Public Utilities
Public Utilities Department
9192 Topaz Way
San Diego, CA 92123
13.4 Waiver of Breach. No failure of either San Diego or Chula Vista to insist upon strict
performance by the other of any covenant, agreement, term or condition of this Agreement, or to
exercise any right or remedy consequent upon a breach thereof, shall constitute a waiver of any
such breach or of such covenant, agreement, term or condition. No waiver of any breach shall
affect or alter this Agreement, but each and every covenant, condition, agreement and term of the
Agreement shall continue in full force and effect without respect to any other then existing or
subsequent breach.
13.5 Exhibits. This Agreement references certain exhibits. Each exhibit is attached to this
Agreement, and is also incorporated herein by reference. The exhibits are as follows:
Exhibit A
Contract Capacity
Sewage Transportation Agreement
City of Chula Vista
Page 18
City of San Diego
4-25
Exhibit B
Facilities Used by Chula Vista
Exhibit C
Unit Transportation Rate
Exhibit D
Sewer Cross-Connection Structures
13.6 Amendment of Agreement. Except as provided in this Agreement, and recognizing that
changes to Contract Capacity (Exhibit A), Facilities Used by Chula Vista (Exhibit B),
Transportation Charge (Exhibit C), and Sewer Cross-Connection Structures (Exhibit D) are
ministerial, this Agreement may be amended or supplemented only by a mutual agreement in
writing between San Diego and Chula Vista stating the parties' intent to amend or supplement
the Agreement.
13.7 Drafting of Agreement. It is acknowledged that San Diego and Chula Vista, with the
assistance of competent counsel, have participated in the negotiation of this Agreement and that
any ambiguity should not be construed for or against either San Diego or Chula Vista.
13.7.1 Understanding oflntent 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 con'ditions .
contained herein, and that this Agreement is executed freely and voluntarily.
13.8 Integration Clause. San Diego and Chula Vista 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 Ag;eement supersedes any and all prior .
agreements or understandings between the parties unless otherwise provided herein including but
not limited to the provisions of Section 13.6 of this Agreement, and that the terms ofthis
Agreement are contractual and not a mere recital; that in executing this Agreement, neither party
is relying on any statement or rep'resentation 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 judgment and knowledge.
13.9 Third Partv Beneficiaries. This Agreement does not confer any rights on any person who is
not a party to this Agreement, and any third party beneficiaries are hereby expressly disclaimed.
13.10 Successors in Interest. This Agreement shall be binding upon and shall inure to the
benefit of both San Diego and Chula Vista. and each of its respective successors, assigns,
trustees or receivers.
13.11 Severabilitv. Should any provision ofthis Agreement be held invalid or illegal, such
invalidity or illegality shall not invalidate the whole of this Agreement, but, rather, the
Agreement shall be construed as if it did not contain the invalid or illegal provision, and the
rights and obligations of the parties shall be construed and enforced accordingly, except to the
extent that enforcement of this Agreement without the invalidated provision would materially
and adversely frustrate either or both parties' essential objectives set forth in this Agreement.
Sewage Transportation Agreement
City of Chula Vista
Page 19
City of San Diego
4-26
13.12 Headings. All Section headings are for convenience only and shall not affect the
interpretation of this Agreement.
13.13 Signature Authoritv. 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.
13.14 Restrictions on Veto of Transfers and Acquisitions of CaDacitv. Chula Vista understands
and specifically recognizcs that with respect to transfer and acquisition of capacity in the SDMS
or the creation of additional capacity in the SDMS for any other authorized agency, Chula Vista
does not have the right to veto or prevent the transfer of capacity by and among other agencies or
with San Diego, or to veto or prevent the creation or acquisition of capacity for another
authorized agency or agencies. Chula Vista recognizes that by signing this Agreement Chula
Vista has expressly pre-approved such actions. The sole right of Chula Vista to object to any of
the foregoing shall be through expression of its opinion to San Diego and, where applicable,
through exercise of its rights under the dispute rcsolution provisions of this Agreement.
13.15 Other Agreemcnts. Nothing in this Agreement limits or restricts the right of San Diego or
Chula Vista to make separate agreements with other agencies without the need to amend this
Agreement, provided that such agreements are consistent with this Agreement. This Agreement
iS'not intended to nor shall it in any way supersede or modify the terms and conditions of the
Regional Wastewater Disposal Agreement or any amendments thereto.
13.16 Counterparts. This Agreement may be executed in counterparts. The counterparts so
executed shall constitute one Agreement notwithstanding that the signatures of all parties do not
appear on the same page.
13.17 Annexation of Agencv Area to the City of San Diego. In the evennhat all or part of the
area served'by Chula Vista is annexed into San Diego, this Agreement shall be null and void
with respect to the annexed territory. Chula Vista's obligations to pay transportation charges or
capital improvement project costs associated with that annexed area shall cease aftcr the date of
annexation. For purposes of determining the date of cessation of these costs, the date of
annexation shall be the effective date as determined by LAFCO.
13.17.1 Bond Indebtedness. Notwithstanding the effect of the above provisions, nothing
in this Section shall be construed as relieving Chula Vista of any obligations concerning
bond indebtedness that was incurred by Chula Vista prior to the annexation, except to the
extent that the obligation involves San Diego and Chula Vista prior to annexation, in
which case San Diego shall become responsible for that portion of Chula Vista's
obligation to the extent that the obligation was incurred for the annexed area, if
obligations for bond indebtedness are calculated based on geographical size, acreage, or
connections.
Sewage Transportation Agreement
City of Chula Vista
Page 20
City of San Diego
4-27
IN WITNESS WHEREOF, this Agreement is executed by the City of San Diego, acting by and
through its Mayor or his/her designee, pursuant to Ordinance No. 0-
authorizing such execution, and by Chula Vista acting by and through
CITY OF CHULA VISTA
CITY OF SAN DIEGO
By:
By:
Name:
Name:
Date:
Date:
By:
'1 HEREBY APPROVE the form and legality
of the forgoing agreement this _ day of
,2010.
Name:
. JAN 1. GOLDSMITH, City Attorney
Date:
By:
Deputy City Attorney
Sewage Transportation Agreement
City of Chula Vista
Page 21
City of San Diego
4-28
EXHIBIT A
CONTRACT CAPACITY
SDMS Facility Average Capacity Peak Contract Capacity
SDMS Facility ll.<mge (mgd) (mgdl
(TS CJ2) OTAY VALLEY TRUNK SEWER 7<)% U_OO 0.91
Overall : "fA 0.91
CHlJLA VISTA
SD:\lS Facility A verage Capacity Peak Contract Capacity
SJJIVIS Facility Usagt' (mgd) (mgd)
(IS 118) SOL rH PAClFIC HIGHWA y TRUNK SEWER ]()()% 2.13 9.07
Overall : 2.38 9.07
CORONAD01
] Coronado used (TS 80) Kettner Boulev<lll.:l Trunk Sewer 100% to transport their flow prior to 2004.
From 2004 tu present, Coronado uses TS 118. Based on the model simulation, Coronado's flow
will split between 13 SO & TS ll~ once it increases above 9.[\ mgd.
SD"IS Facility Averap,e Capacity Peak Contract Capacily
SDi\IS Facility Usage (mgd) (mgdl
(TS 44) DEL MAR HEIGHTS TRUNK SEWER 10% O.h4 1.84
(TS 47) CARMEL VALLEY TRUNK SEWER 9" 0.04 1.84
"
(PS6)) PUMP STATION 65 IUO% 0.64 1.84
(PSI14) P\:tv\P STATION 64 100% 0.64 1.84
Overall : 0.64 1.84
DEL MAR
EAST UTA Y MESA'
The conti act for East Gtay Mesa Sewer Sanitation District will be negotiated separately
SDi\'lS Facility Average Capacity Peak Contract Capacity
SDl'-IS Facility Usagt' (mgd) (mgd)
EAST MISSION GORGE I:--ITERCEPTOR 100% Y.16 ]9.73
(EMGPS.I EAST :VIISSION GORCTE PUMP STATION 100% 9.lh 19.73
(TS 33) MISSION GORtiE TRUNK SEWER 100% 9.16 lY.73
(l"S 7) ALvARADO TRUNK SEWER ]00% 0.33 2.05
(TS 5) NORTH tI,'llSSION VALLE)' TRUNK SEWER 100% 9.4'1 2],78
Overall : 9.49 21.78
EL CAJON
Rcvis~d ,,118109
lor3
4-29
EXHIBIT A
CONTRACT CAPACITY
SDMS Facility Average Capacity Peak Contract Capacity
SDl\'fS Facility Usage (mgd) (mgdl
(TS 75) PALM CITY TRU~K SEWER 66% 1.59 4.44
OVl:rall : 159 4.44
IMPERIAL BEACH
SDiVI~ Facility ..\vcrage CapJlcity Pe,lI( Contrnct l'.'lpacity
SDMS Facility Usa~e (mgd) (mgd)
(TS 7) AI.\' ARADQ TRUNK SeWER IUO% 3.'5 16.43
(TS 5) 0l0RTl-I MISSION V ALLEY TRUNK SEWER 100':/0 3.35 16A3
(TS 20) r.:HOLLAS VALLEY TRUNK SEWER 100% 1.57 5.95
iTS 1/9) NF::W CHOLLAS VALLEY TRUNK SEWER IOG'Yo 1.57 5.95
(TS 21) HOM E A VENUE TRt;'"NK SEWER 11% 1.)7 5.95
(IS 110\ CHOU AS CRFEK TRUNK SEWER 100% 157 5,'15
(TS 23) SOUTH CHOLLAS 'vALLEY TRlTNK SEWER 100% 0.]6 0.66
(TS 27) It\MACHA ROAD TRl..JNK SEWER 83% 003 020
lTS 22) ENCANTO TRl iNK SEWI::R 10U% 0.19 0.86
ns 11) HARBOR DRIVE TRU;'\'K SEWER 10% l.7~ 1),31
Overall : 5.10 23.24
IA MESA
~
SUMS Facility Average Capacity l'eak. Contract Capacity
SUMS Facility Usage (mgd) (mgd)
EAST MISSION GORGE G'JTERCEPTOR 100%, 3.83 10.29
(EMGPS) EAST MISSiON GORGE PUMP STATION 100% 3.83 10.20
(TS 33) tvllSSIUN GORGE TRUNK SEWER iOO% 3.83 10,29
(TS 5) NORTH MISSIONVAU EY TRIJ0,1( SEWER 100% 3.B3 iO.2<)
Overall : 3.R3 10.29
LAKESIDE / ALPINE
SDJ\<IS Facility Average Capacity Peak Contract Capacity
snMS Facility IJ,SaJ..:c (mgd) (mgd)
(TS 23) SOlJTH CHOLLAS V A.LLEY TRUNK SEWER ]00% 0.41 1,06
ITS 27) J.A.\1ACHA ROAD TRUNK SEWER 100% 1.73 B,7')
ns 22) E;\CANTO TRUNK SEWER 100% 2.i4 9.81
(TS 13) HARBOR DRIVE TRlJNK SEV'/ER 12% 2.14 9.:~ I
Overall : 2.14 9.81
LEMON GROVE
SUMS Facility Average Capacity Peak Contract Capacily
SDMS Facility Usage (mgd) (mgd)
(TS 24) VALFNr.IA PARK TRUNK SEWER 77% 085 1.82
(TS 13) HARBOR DRIVE TRUNK SEWER 6% (j.BS 1.82
ITS 761 PARAD!SF HILLS TRUNK SEWER 86% f1.03 0,]1
(TS 77) SOUTH BAY TERRACES lS% ().4':J 1.14
Overall : 1.37 3;07
NATIONAL CITY
Revised 611 3109
laD
4-30
EXHIBIT A
CONTRACT CAPACITY
SUMS facility Average Capacity Peak Contract Capacity
SDJ\'1S Facility Usage (mgtl) (mgd)
EAST lvllSSIOS GORGE INTERCEPTOR 100"/" 3.45 13.(,7
(ElvIGI-'Sl EAST Ml~~ION GORGE PUMP STATION 100% 1.45 13.67
(IS 33) :VIISSIO~ GURGE TRUNK SEWER 100% 3.45 13.67
(IS 5) NURTH :v1!SSIIlN VALLEY TRUNK SEWER 100% 3,45 13.67
Overall : 3.45 13.67
PADRE [JAM
SUiVIS Facility Avcra~c Capacity Peak Contract Capacity
SUMS Facility Usage (mgd) (mgd)
(IS 33) EAST BERNARDO TRUNK SEWER 42'1" 0.05 0.14
US 4S) PENASQUITOS TRUNK SE\VER 16% 3,~3 'i,03
(PQPS) PENASQUITOS PLMP STATIO:-J 100% 3.93 'J.03
PENASQUITOS RELIEF 100% 3.')1 9,U]
Overall : 3.98 lJ.16
PO\VA Y
SDMS Facility Average Capacity Peak Contrad Capacity II
SDlHS F:lcility llsage (mgd) (mgd)
EAST MISSION GORGE INTERCEPTOR 100% 0.97 :U8
(EMGPS) EAST MISSION GORGE PUM)' STATION 100% 0.97 2.18
(TS 33) MISSION GORGE TRUNK SEWER 100'% o.~n 2.18
(TS 5) NORTH MISSION VALLEY TRU~K SeWER 100% 0.97 218
Overall : 0.97 2.1R
WINTERGARDENS
NOTE: Metru facilities, non-city sl.:wer lines, and agencil;s (Otay Water District and Spring Valky)
that do not use San Diego Municipal Sewerage System (SDMS) facilities are excluded from this table.
Revised 61l~/09
3l1['
4-31
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INFRASTRUCTURES SHOWN IN BLACK
ARE THE PORTIONS OF THE SDMS FACILITIES
USED BYCHULA VISTA
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GIS
EXHIBIT B
FACILITIES USED BY CHULA VISTA
SEWAGE TRANSPORTATION AGREEMENT
Dateprrted 12-U1-08 JRlchards
J:\GROUPSIADSITransport<lt on Agr"ement Maps',Chula Vista
Cit, .;1 8<lH Uic~o
W;]ll'rl)<'jJ~rt'l"",t
EXHTBTT C
UNIT TRANSPORT A TTON RATE
I. Computal1on Methodology:
The Tr::msportarion Rate is based on 0 & M costs associated with the use of the conveyance systems and billing units in terms
of Million Gallons-Miles (MG-Mile). O&M Costs are apportioned between small diameter pipes (SDP) defined as less than
eighteen inches and large diameter pIpes (LDP") defint:d as equal to or greater than eighteen inches based on the costs to
service large diameter pipes. This method provides information on the amount of How, the individual lines utilized for
transport, and the total mileage used in the municipal system.
II. Base Transportation Rate:
Pipe Diameter Unit cost Agency Rate
Billing Units MG-milcs Le1H2.th, mi les O&tvl Cost $/m2 -mile Bil1ing Units, Cost S/m2 -mile
MG-miles
<18" 329,722 2,538 $52,790,764 $160.11 2,255 $361,041 $0.77
---18" 1,407,607 281 84,612,328 $3.28 469,428 $t,538,182 $3.26
Total 1,737.329 2,819 S57,403,092 471,683 $1,899,223 $4.03
IlL Transportation Rate effective July I, 2008 through June 30, 2009 is $4.161
I The base transpOliation rate adjusted by the average intlation ratc for California in 2007 of 3.2~/O per the State of California
Economic Forecast Index. This is consistent with Section YI.A. of the Municipal Sewage Transportation Agreement.
IV. Transportation Rate effective July 1,2009 through June 30, 2010 is $4.30'
2 The base transportation rate adjusted by the average inflation rate for California in 20()~ of3.4% per the State of California
Economic Forecast lndex. This is consistent with Section yr.A. of the Municipal Sewage Transportation Agreement.
V. Transportation Rate effective July I, 20 I 0 through June 30, 20 II is $4.303
3 The base transportation rate adjusted by the average lllf1ation rate fur California in 2009 of -0.1 (Yo per the State of California
Economic Forecast [ndex (website: http://sacramentoforecastproject.org/ca/CALIF.htm).This is consistent with Section YI.A.
of the Municipal Sewage Transportation Agreement.
4-33
EXHIBIT D
SEWER CROSS-CONNECTION STRUCTURES
~
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4-34
I
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I
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RESOLUTION NO. 2010-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING AN AGREEMENT BETWEEN
CITY OF CHULA VISTA AND CITY OF SAN DIEGO FOR
THE USE OF THE OT A Y V ALLEY TRUNK SEWER LINE
WHEREAS, the City of San Diego owns, operates and maintains the Metropolitan
Sewerage System for the purpose of treating and disposing of sewage for the City of San Diego
and certain other municipalities and districts including Participating Agencies within the San
Diego region under the terms and conditions of the Regional Wastewater Disposal Agreement;
and
WHEREAS, the City of San Diego also owns, operates and maintains the San Diego
Municipal Sewerage System for the purpose of collecting and transporting sewage to the
Metropolitan Sewerage System; and
WHEREAS, due to the location of the City of Chula Vista's sewerage system it is
necessary that the City of Chub Vista use a portion of the San Diego Municipal Sewerage
System to transport its sewage to the Metropolitan Sewerage System; and
WHEREAS, the City of San Diego and the City of Chub Vista had previously entered
into a Sewage Transportation Agreement concerning the Otay Rio Business Park, which runs
concurrently with the Sewage Disposal Agreement of 1960, under which the City of San Diego
has authorized the City of Chub Vista to discharge sewage into the San Diego Municipal
Sewerage System for transportation to the Metropolitan Sewerage System and under which the
parties had operated; and
WHEREAS, this agreement shall establish the rights, privileges and duties of the parties
concerning the use and maintenance of the Otay Valley Trunk Sewer, set standards governing
waste discharges and sewage flow, and establish a rate to be charged for sewage transportation
services rendered by the City of San Diego to Chub Vista.
NOW, THEREFORE, the City Council of the City of Chub Vista hereby approves the
agreement to streamline efforts with the City of San Diego and to enable the City to continue to
provide sewer service to the area served by the Otay Valley Trunk Sewer, and authorizes the
Mayor and City Clerk to execute said agreement.
Richard A. Hopkins
Director of Public Works
Presented by
4-35