1. CALL TO ORDER 2. ROLL CALL 3. PLEDGE OF ALLEGIANCE 4. ORAL COMMUNICATIONS (NON-ACTION ITEM) 5. APPROVAL OF AGENDA 6. EWA SEJPA INTEGRATION PROPOSAL

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1 SPECIAL MEETING AGENDA SAN ELIJO JOINT POWERS AUTHORITY (SEJPA) TUESDAY JULY 12, 2016 AT 8:30 AM ENCINA WATER POLLUTION CONTROL FACILITY (EWA) BOARD MEETING ROOM 6200 AVENIDA ENCINAS CARLSBAD, CALIFORNIA 1. CALL TO ORDER 2. ROLL CALL 3. PLEDGE OF ALLEGIANCE 4. ORAL COMMUNICATIONS (NON-ACTION ITEM) 5. APPROVAL OF AGENDA 6. EWA SEJPA INTEGRATION PROPOSAL At its June 13, 2016 meeting, the Board of Directors received and filed the EWA SEJPA Integration Proposal and authorized the General Manager to schedule a Special Board of Directors Meeting in conjunction with EWA to discuss and consider the EWA SEJPA Integration Proposal Recommendations. With the successful implementation of employee leasing and contract collaboration with EWA, our best professional judgement is that the potential for significant cost savings exist and a phased integration approach with EWA in the most appropriate next step. Approval of the recommendation would authorize the General Manager to work cooperatively with officials at the EWA and SEJPA General Counsel in drafting the appropriate agreement for implementing Phase I of the EWA SEJPA Integration Proposal. Recommendation: 1. Authorize the General Manager to work cooperatively with EWA officials and General Counsel to draft the appropriate agreement for Phase I Implementation of the EWA - SEJPA Integration Proposal; and 2. Discuss and take action as appropriate. Staff Reference: Michael Thornton, General Manager 7. ADJOURNMENT NOTICE: The San Elijo Joint Powers Authority s open and public meetings meet the protections and prohibitions contained in Section 202 of the Americans With Disabilities Act of 1990 (42 U.S.C Section 12132), and the federal rules and regulations adopted in implementation thereof. Any person with a disability who requires a modification or accommodation, including auxiliary aids or services, in order to participate in a public meeting of the SEJPA Board of Directors may request such modification or accommodation from Michael T. Thornton, General Manager, (760) ext. 72. T:\Legal\Agenda\2016\7 July\July 2016 Special Meeting\2016 July 12 Agenda (Special Meeting).docx

2 SEJPA Special Meeting Agenda July 12, 2016 Page 2 The agenda package and materials related to an agenda item submitted after the packet s distribution to the Board is available for public review in the lobby of the SEJPA Administrative Office during normal business hours. Agendas and minutes are available at The SEJPA Board meetings are held on the second Monday of the month, except August. AFFIDAVIT OF POSTING I, Michael T. Thornton, Secretary of the San Elijo Joint Powers Authority, hereby certify that I posted, or have caused to be posted, a copy of the foregoing agenda in the following locations: San Elijo Water Reclamation Facility, 2695 Manchester Avenue, Cardiff, California City of Encinitas, 505 South Vulcan Avenue, Encinitas, California City of Solana Beach, 635 South Highway 101, Solana Beach, California The notice was posted at least 24 hours prior to the meeting, in accordance with Government Code Section (a). Date: July 8, 2016 Michael T. Thornton, P.E. Secretary / General Manager T:\Legal\Agenda\2016\7 July\July 2016 Special Meeting\2016 July 12 Agenda (Special Meeting).docx

3 AGENDA ITEM NO. 6 SAN ELIJO JOINT POWERS AUTHORITY MEMORANDUM July 12, 2016 TO: FROM: SUBJECT: Board of Directors San Elijo Joint Powers Authority General Manager ENCINA WASTEWATER AUTHORITY (EWA) SAN ELIJO JOINT POWERS AUTHORITY (SEJPA) INTEGRATION PROPOSAL RECOMMENDATION It is recommended that the Board of Directors: 1. Authorize the General Manager to work cooperatively with EWA officials and General Counsel to draft and enter into appropriate agreements for Phase I Implementation of the EWA - SEJPA Integration Proposal; and 2. Discuss and take action as appropriate. BACKGROUND At its June 13, 2016 meeting, the Board of Directors received and filed the EWA SEJPA Integration Proposal and authorized the General Manager to schedule a Special Board of Directors Meeting, in conjunction with EWA, to discuss and consider the EWA SEJPA Integration Proposal Recommendations. With the successful implementation of employee leasing and contract collaboration with EWA, our best professional judgment is that the potential for improved organizational effectiveness and cost savings exist, and the most strategic next step is a phased integration approach with EWA. Approval of staff s recommendation would authorize the General Manager to work cooperatively with officials at EWA and the SEJPA General Counsel to draft the appropriate agreement for implementing Phase I of the EWA SEJPA Integration Proposal. DISCUSSION EWA and SEJPA are analogous high-performing organizations that protect public health and the environment. Like SEJPA, EWA operates, maintains, and administers a jointly owned wastewater treatment plant, an ocean outfall, and multiple sub-regional wastewater pumping stations. EWA s service area is approximately one hundred twenty three (123) square miles and 6-1 No. 6 Special Meeting EWA SEJPA Integration Proposal v2.0 Clean

4 serves a community of about 400,000 citizens. EWA is a joint powers authority comprised of six (6) member agencies: the Cities of Carlsbad, Vista, and Encinitas, Vallecitos Water District, Buena Sanitation District and Leucadia Water District. Working in collaboration with EWA, staff researched the feasibility of EWA SEJPA integration and drafted a proposal outlining a recommended approach to move forward. EWA and SEJPA have demonstrated success in leveraging opportunities to reduce costs and create efficiencies. The executive leadership teams of both organizations propose an integration plan that provides key actions and corresponding benefits. The Integration Proposal is organized into three phases that clearly identify objectives and provide reasonable timelines to achieve measured success while managing risk. The proposed first phase is integrating the management and administration of both organizations into a single, consolidated team. This would provide the benefits of streamlining administration to both organizations, while allowing each to exist independently. The focus would be on developing organizational efficiencies, improved service delivery, and capturing cost savings associated with optimized executive and administrative staffing; shared engineering, laboratory, and HR staff; and leveraged efficiencies in permitting and system operations. Additionally, staff will continue to examine opportunities to create additional savings as institutional knowledge is shared and working relationships are developed. With the successful implementation of employee leasing and contract collaboration with EWA, our best professional judgment is that a phased integration with EWA is the most appropriate next step. Potential long-term operational and economic efficiencies exist without sacrificing the strong tradition of organizational effectiveness that characterizes both organizations. More specifically, our judgment is that the whole of a blended EWA - SEJPA may be greater than its individual elements. Both EWA and SEJPA would come into this process from a position of strength: both are high performing joint powers agencies; each possesses complimentary organizational expertise (EWA = solids, power; SEJPA = water recycling); and, both have competent and confident executive leadership, respected and productive staff, and excellent relationships with regulators. It is therefore recommended that the Board of Directors: 1. Authorize the General Manager to work cooperatively with EWA officials and General Counsel to draft and enter into appropriate agreements for Phase I Implementation of the EWA - SEJPA Integration Proposal; and 2. Discuss and take action as appropriate. Respectfully submitted, Michael T. Thornton, P.E. General Manager Attachment 1: EWA SEJPA Integration Proposal 6-2 No. 6 Special Meeting EWA SEJPA Integration Proposal v2.0 Clean

5 ATTACHMENT 1 ENCINA WASTEWATER AUTHORITY SAN ELIJO JOINT POWERS AUTHORITY INTEGRATION PROPOSAL: A Collaborative Solution for Smart Management of North County s Water Future

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7 f f f BENEFITS TO MEMBER AGENCIES & RESIDENTS EWA SEJPA INTEGRATION PROPOSAL l S J E I P Y P D T [ O I V J K M O [ R I M S J I P D M J T I C M A B C D E G H B C I J V O K M I J E R V M P O D \ K M I J C U X P D J E C E U P D P K M I C M P O D C D E O L J I C M P O D K \ C D E P D V I J C K J E Q C M J I I J V O Y J I Z C D E I J R K J J [ [ O I M K _ A P M S M S J P I K R W K M C D M P C X O L J I C M P O D C X K P U P X C I P M P J K \ C D P D M J T I C M J A B ƒ G H B O [ [ J I K M S J [ O X X O Q P D T C E Y C D M C T J K e F C Y P D T U O D J Z M S I O R T S J V O D O U P J K O [ K V C X J _ b R X c L R I V S C K J K C D E V O D M I C V M P D T W Z M S J C T J D V P J K O [ [ J I I P V V S X O I P E J \ K O E P R U S Z L O V S X O I P M J \ C D E O V J C D U O D P M O I P D T C I J J K M P U C M J E M O K C Y J D J C I X Z g \ i i i L J I Z J C I _ l S J C T J D V P J K W J X P J Y J N O P D M L R I V S C K P D T V C D W J J a M J D E J E M O O M S J I K R L L X P J K C D E K J I Y P V J V O D M I C V M K \ [ R I M S J I J a L C D E P D T K C Y P D T K A B C D E G H B O L J I C M J Q C M J I n ~ y s z u q n o p y t x ˆ p n t u w z t s y u Š Š Œ I J V X C U C M P O D [ C V P X P M P J K Q P M S V C L C V P M Z O [ U P X X P O D T C X X O D K C E C Z C D E U P X X P O D T C X X O D K C E C Z \ I J K L J V M P Y J X Z _ l S J ] O I M S F C D Ž P J T O ^ O R D M Z J T P O D C X J V Z V X J E A C M J I H I O N J V M E J K V I P W J K O L L O I M R D P M P J K [ O I W O M S I J V Z V X J E Q C M J I C D E L O M C W X J I J R K J M S C M V C D W J K J I Y J E W A B C D E G H B _ ^ O X X C W O I C M P O D O D [ R M R I J I J V Z V X J E Q C M J I L I O N J V M K V O R X E L I O Y P E J V O K M K C Y P D T K C D E J [ [ P V P J D V P J K W J Z O D E M S C M Q S P V S J P M S J A B O I G H B V O R X E O W M C P D O D P M K O Q D _ B E E P M P O D C X X Z \ C D P D M J T I C M J A B ƒ G H B Q O R X E W J W J M M J I L O K P M P O D J E M O L R I K R J L O M C W X J I J R K J \ Q S P V S S C K K R W K M C D M P C X X Z T I J C M J I M J V S D P V C X C D E U C D C T J I P C X I J R P I J U J D M K [ O I K R V V J K K _ D V I J C K P D T U J U W J I C T J D V Z I J Y J D R J _ A C M J I I J K O R I V J I J V O Y J I Z C D E I J R K J O L L O I M R D P M P J K M S I O R T S C A B ƒ G H B C X X P C D V J P K K R W K M C D M P C X C D E V O R X E V I J C M J C U R X M P U P X X P O D E O X X C I I J Y J D R J K M I J C U \ Q S P V S V O R X E L I O E R V J E P Y P E J D E K M O M S J L C I M P V P L C M P D T U J U W J I C T J D V P J K _ j R I M S J I U O I J \ K V C X P D T R L M S J K P d J O [ L I O N J V M K O [ M J D P D V I J C K J K M S J I J M R I D O D P D Y J K M U J D M \ M S J I J W Z X O Q J I P D T M S J V O K M O [ K J I Y P V J M O I C M J L C Z J I K A B S C K P D Y J K M J E K P T D P [ P V C D M X Z M O W J V O U J C D P D E R K M I Z X J C E J I Q P M S P M K H R I J I J J D s s y z o q n o u v q p u p q u s z s y u x q Š Œ L I O T I C U O [ [ J I P D T ^ X C K K B W P O K O X P E K R K J E X O V C X X Z C K [ J I M P X P d J I \ K O X E V O U U J I V P C X X Z \ C D E R K J E C K C [ R J X K O R I V J [ O I P D E R K M I Z _ L L O I M R D P M P J K [ O I G H B M O L C I M D J I P D M S P K L I O T I C U V O R X E L I O Y P E J O L J I C M P O D C X V O K M K C Y P D T K \ T J D J I C M J I J Y J D R J [ I O U G H B M A B [ O I K Z K M J U R K J \ C D E C X X O Q M S J G H B M O E P K V O D M P D R J S C R X P D T ^ X C K K b W P O K O X P E K M O B I P d O D C _ l S J I J P K V O D V J I D Q P M S P D M S J Q C K M J Q C M J I P D E R K M I Z M S C M E J X P Y J I P D T ^ X C K K b W P O K O X P E K M O B I P d O D C V O R X E S C Y J C X P U P M J E [ R M R I J _ D V I J C K P D T W P O T C K L I O E R V M P O D [ O I I J D J Q C W X J J D J I T Z A B O L J I C M J K C W P O T C K [ R J X J E I J D J Q C W X J J D J I T Z L O Q J I L X C D M _ m Š Š p y t n q t q s u r z v s z z q z v s t p ~ p n s š u Š y q r z y u o s t p p y Š y p ~ s u u q n o t p q n ~ y s z u s v q p o z u L I O E R V M P O D C D E V I J C M J U O I J I J D J Q C W X J J D J I T Z _ F R V S C D C L L I O C V S Q O R X E J X P U P D C M J M S J D J J E [ O I U P X X P O D K O [ E O X X C I K P D [ R M R I J K O X P E S C D E X P D T P U L I O Y J U J D M K C M M S J F C X P N O A C M J I J V X C U C M P O D j C V P X P M Z _

8 k f PROPOSED INTEGRATION APPROACH EWA SEJPA INTEGRATION A B C D E G H B S C Y J E J U O D K M I C M J E K R V V J K K P D X J Y J I C T P D T O L L O I M R D P M P J K M O I J E R V J V O K M K C D E V I J C M J J [ [ P V P J D V P J K _ l S J J a J V R M P Y J X J C E J I K S P L M J C U K O [ W O M S C T J D V P J K L I O L O K J C D P D M J T I C M P O D L X C D M S C M L I O Y P E J K c J Z C V M P O D K C D E V O I I J K L O D E P D T W J D J [ P M K _ l S J L X C D P K K J T I J T C M J E P D M O M S I J J L S C K J K _ PHASE I J Z O C X K e. 8 9 ž 9, * Ÿ > * & * 0!.. (. 9!! &! * * ; # % ( / # 2 3 ( l P U J [ I C U J e 8 * " & ^ O K M F C Y P D T K O C X e < ^ I J C M P D T C D P D M J T I C M J E U C D C T J U J D M M J C U M O C E U P D P K M J I W O M A B C D E G H B Q O R X E L I O Y P E J M S J W J D J [ P M K O [ V O D K O X P E C M J E C D E K M I J C U X P D J E C E U P D P K M I C M P O D M O W O M S O I T C D P d C M P O D K \ Q S P X J C X X O Q P D T J C V S M O J a P K M P D E J L J D E J D M X Z _ l S J [ O V R K Q O R X E W J O D V C L M R I P D T V O K M K C Y P D T K C K K O V P C M J E Q P M S I J E R V J E C E U P D P K M I C M P Y J X C W O I K S C I J E J D T P D J J I P D T \ X C W O I C M O I Z \ C D E K M C [ [ C D E X J Y J I C T J E J [ [ P V P J D V P J K P D L J I U P M M P D T C D E K Z K M J U O L J I C M P O D K _ B E E P M P O D C X X Z \ K M C [ [ Q P X X V O D M P D R J M O J a C U P D J O L L O I M R D P M P J K M O V I J C M J [ R I M S J I K C Y P D T K C K K O V P C M J E W R D E X P D T C D E K R L L X Z V O D M I C V M K _ w q t x u s y q ~ s l S P K L I O L O K C X P D V X R E J K B E U P D P K M I C M P Y J b R P X E P D T _ O V C M P D T M S J x p u t q n o t x s q n t s o y z t s r z n z o s r s n t t s z r z t u U C D C T J U J D M M J C U C M O D J K P M J Q P X X U C a P U P d J Q O I c P D T I J X C M P O D K S P L K W J M Q J J D M J C U U J U W J I K C D E L I O Y P E J C L C M S [ O I M S J [ R X X L O M J D M P C X O [ M S P K L I O L O K C X M O W J I J C X P d J E _ j R I M S J I U O I J \ V O D K O X P E C M P D T U C D C T J U J D M C A B U C Z I J E R V J W R P X E P D T K L C V J D J J E K [ O I M S J G H B \ M S J I J W Z L O M J D M P C X X Z I J E R V P D T [ R M R I J V C L P M C X W R P X E P D T J a L J D E P M R I J K _ j O A B \ M S P K V C D C X X O Q M S J G H B M O X J C K J K L C V J P D M S J J a P K M P D A B B E U P D P K M I C M P Y J b R P X E P D T \ V I J C M P D T D J Q I J Y J D R J K [ O A B C D E P M K U J U W J I C T J D V P J K _ l S J L X C D P D V X R E J K R C I M J I X Z U J J M P D T K Q P M S W O M S b O C I E K M O I J Y P J Q L I O T I J K K \ U P X J K M O D J K \ C D E L J I [ O I U C D V J _ w q v s Š y p q s t p v p t x z n š t p n w q n L I C V M P V J K \ P [ I J R J K M J E _ J D M t x s t s z r z n y s t y n t p s } q u t q n o r z n z o s r [ [ I C U L K l S J [ P D C D V P C X T O C X O [ H S C K J P K C D J M Y C X R J V I J C M P O D O [ g ` i i \ i i i M S I O R T S I J E R V J E K M C [ [ P D T \ C E U P D P K M I C M P O D K M I J C U X P D P D T C D E W R X c L R I V S C K P D T \ Q P M S C D h U O D M S M P U J [ I C U J _ œ

9 f PHASE II J Z O C X K e. 8 9 ž 9, EWA SEJPA INTEGRATION PROPOSAL! * * ; ª! $! 0. ( $ $ * )! / + & 9 & «: * * + > * & * 0!.! *! * 0 ; & ) $ ) 3 0! l P U J [ I C U J e 8 * " & ^ O K M F C Y P D T K O C X e < < L O D M S J K R V V J K K [ R X P D M J T I C M P O D O [ M S J U C D C T J U J D M M J C U A B C D E G H B b O C I E K U C Z E J K P I J M O L R I K R J T I J C M J I C T J D V Z P D M J T I C M P O D _ ^ I J C M P D T C L J I U C D J D M X Z P D M J T I C M J E U C D C T J U J D M M J C U P K X P c J X Z M S J [ P I K M K M J L _ l S P K V C D C X X O Q M S J G H B M O V C L M R I J [ P D C D V P C X W J D J [ P M K O [ V O D K M I R V M P D T C K U C X X J I O L J I C M P O D K W R P X E P D T C D E B E U P D P K M I C M P O D Š y p q s z n p Š Š p y t n q t p y t x s š t p v q n t p u b R P X E P D T _ M P K C D M P V P L C M J E M S C M M S P K V O R X E W J [ P D C D V P C X X Z C E Y C D M C T J O R K [ O I W O M A B C D E G H B _ Ž R I P D T H S C K J \ [ R I M S J I K M I J C U X P D P D T C D E V O K M K C Y P D T K C I J C D M P V P L C M J E M O W J C V S P J Y J E P D M S J C I J C K O [ L J I C M P O D K D T P D J J I P D T \ C D E B E U P D P K M I C M P O D _ l S P K U C Z P D V X R E J V O D K O X P E C M P D T X C W O I C M O I P J K \ P D M J T I C M P D T [ P D C D V P C X C D E C V V O R D M P D T K Z K M J U K \ C D E E J Y J X O L P D T I J T P O D C X P D [ I C K M I R V M R I J K O X R M P O D K _ J T P O D C X P D [ I C K M I R V M R I J K O X R M P O D K Q P X X X P c J X Z L I O Y P E J K R W K M C D M P C X W J D J [ P M K M A B \ G H B C D E M S J V O X X J V M P Y J V O U U R D P M P J K K J I Y J E _ l S J P D M J T I C M J E M J C U Q P X X [ O V R K O D W J M M J I R M P X P d C M P O D O [ J a P K M P D T C D E [ R M R I J P D [ I C K M I R V M R I J E J Y J X O L P D T D J Q L O K K P W P X P M P J K Q P M S I J V Z V X J E Q C M J I C D E L O M C W X J I J R K J O L L O I M R D P M P J K [ O I [ O O E Q C K M J E P T J K M P O D \ ^ X C K K B W P O K O X P E K \ C D E J D J I T Z I J V O Y J I Z C D E I J R K J _ b O M A B C D E G H B K M I P Y J M O E J Y J X O L P D T y s o q p n z W J K M I J M R I D O D P D Y J K M U J D M [ O I M S J L R W X P V _ u p t q p n u M O L I O Y P E J M S J T I J C M J K M Y C X R J M O ] O I M S ^ O R D M Z C D E L I O E R V J M S J l S J [ P D C D V P C X T O C X O [ H S C K J P K C D J M Y C X R J V I J C M P O D O [ g \ i i i \ i i i \ Q P M S C ` U O D M S M P U J [ I C U J _ Regional infrastructure solutions will likely provide substantial benefits to EWA, SEJPA and the collective communities served.

10 f f EWA SEJPA INTEGRATION PROPOSAL PHASE III J Z O C X K e ± 5! 9! 4! * * ; ( & & ²! 0! 4! *! * 0 $ + $ 0. % 3 * : 0 ² &! * 0 ³! * & * 0!. & / * 0 )! * & l P U J [ I C U J e 8 * " & ^ O K M F C Y P D T K O C X e ž ³ µ J Y J D R J O C X e ž ³ µ H S C K J Q P X X [ O V R K O D P U L X J U J D M P D T M S J S P T S J K M I C M J E J T P O D C X D [ I C K M I R V M R I J K O X R M P O D K _ l S P K Q P X X X P c J X Z P D Y O X Y J L I O N J V M K M S C M X J Y J I C T J V C L P M C X P D [ I C K M I R V M R I J P D Y J K M U J D M K W J M Q J J A B C D E G H B \ C K Q J X X C K M S J P D E P Y P E R C X U J U W J I C T J D V P J K \ M O L I O Y P E J U C a P U R U W J D J [ P M K C M M S J X O Q J K M L O K K P W X J V O K M _ l S J K J C I J C K U C Z P D V X R E J N O P D M L X C D D P D T \ K Z K M J U P D M J I V O D D J V M P O D \ J a L C D E J E I J K O R I V J I J V O Y J I Z C D E I J R K J \ C D E O L M P U P d C M P O D O [ C K K J M R M P X P d C M P O D _ ^ X C I P M Z O D M S J K J O L L O I M R D P M P J K Q P X X W J T C P D J E C K I J T P O D C X L I O N J V M K C I J C K K J K K J E W A B ƒ G H B _ k O Q J Y J I \ M O R C D M P [ Z M S J L O M J D M P C X Y C X R J O [ K R V S O L L O I M R D P M P J K \ I J Y J D R J [ I O U C ` Ž L O M C W X J I J R K J L I O N J V M Q P X X X P c J X Z J a V J J E g U P X X P O D L J I Z J C I _ ^ I J C M P D T I J Y J D R J K [ I O U Q C M J I I J R K J O I O M S J I J [ [ O I M K Q P X X W J J K K J D M P C X M O E J Y J X L P D T M S J [ P D C P D V P C X W C K P K [ O I M S J P D Y J K M U J D M O [ L R W X P V [ R D E P D T _ l S J P D M J D M O [ V I J C M P D T I J Y J D R J K M I J C M U K [ I O U I J K O R I V J I J V O Y J I Z P K M O L I O Y P E J X O D T M J I U [ P D C D V P C X K R K M C P D C W P X P M Z M A B ƒ G H B _ MANAGING RISK B K Q P M S C D Z W R K P D J K K L I O L O K C X \ M S J I J P K M S J L O M J D M P C X [ O I W O M S T C P D K C D E X O K K J K A B C D E G H B U C D C T J U J D M S C Y J P E J D M P [ P J E L O M J D M P C X I P K c K C D E S C Y J E J Y J X O L J E I P K c U P M P T C M P O D U J C K R I J K U L S C K P K Q P X X W J L X C V J E O D V X J C I V O U U R D P V C M P O D Q P M S P D M S J D J Q U C D C T J U J D M M J C U \ W J M Q J J D M S J O I T C D P d C M P O D K \ C D E Q P M S M S J b O C I E O [ Ž P I J V M O I K O [ W O M A B C D E G H B _ l S P K P K M O J D K R I J V O U U O D O W N J V M P Y J K C I J V O U U R D P V C M J E \ R D E J I K M O O E C D E C V S P J Y J E _ j R I M S J I U O I J \ M S J P D M J T I C M P O D L I O L O K C X L I O Y P E J K C M S I J J L S C K J L X C D M S C M K M C T T J I K c J Z U P X J K M O D J K \ L I O Y P E J K [ O I O D T O P D T E J X P Y J I C W X J K \ C D E R K J K C K M J L Q P K J C L L I O C V S M O P U L X J U J D M P D M J T I C M P O D _ l S P K C X X O Q K [ O I L I O T I J K K C D E K R V V J K K M O W J U J C K R I J E \ C D E M S J L C V J O [ P D M J T I C M P O D V C D W J V O D M I O X X J E C M M S J b O C I E X J Y J X _ l S J J a J V R M P Y J X J C E J I K S P L M J C U R D E J I K M C D E K M S C M J [ [ J V M P Y J R M P X P M Z U C D C T J U J D M V C D D O M W J V O U L I O U P K J E C D E M S C M J a V J L M P O D C X O L J I C M P D T K J I Y P V J U R K M W J U C P D M C P D J E _ A J [ R I M S J I I J V O U U J D E M S C M P D M J T I C M P O D L X C D D P D T c J J L M S J P D M J T I P M Z O [ W O M S C T J D V Z T O Y J I D C D V J K M I R V M R I J K K J L C I C M J C D E E P K M P D V M M O L I J K J I Y J C K K J M O Q D J I K S P L \ Y O M P D T I P T S M K \ C D E E J W M _ l S P K C X X O Q K M S J P D M J T I C M P O D L I O L O K C X M O U O Y J [ O I Q C I E Q P M S O R M V I J C M P D T V O U L X J a P M P J K Q P M S J a P K M P D T T O Y J I D C D V J C D E C K K J M O Q D J I K S P L _ We further recommend that integration planning keep the integrity of both agency governance structures separate and distinct to preserve asset ownership, voting rights, and debt.

11 EWA SEJPA INTEGRATION PROPOSAL j R I M S J I U O I J \ M S J P D M J T I C M P O D L X C D Q P X X P D V X R E J R C I M J I X Z U J J M P D T K Q P M S W O M S b O C I E K M O I J Y P J Q L I O T I J K K \ U P X J K M O D J K \ C D E L J I [ O I U C D V J _ F L J V P [ P V O [ [ I C U L K Q P X X W J V X J C I X Z O R M X P D J P D M S J J Y J D M L O X P V Z U C c J I K V S O O K J M O L P Y O M W C V c M O O I P T P D C X O I T C D P d C M P O D C X K M I R V M R I J K _ CONCLUSION J I T P D T C D Z M Q O O I T C D P d C M P O D K P K C V O U L X J a M I C D K C V M P O D [ P X X J E Q P M S I P K c C D E I J Q C I E _ ] J C I X Z ` Z J C I K O [ E R J E P X P T J D V J C D E U J C K R I J E J [ [ O I M K P D I J K O R I V J C D E c D O Q X J E T J K S C I P D T S C Y J L O K P M P O D J A B C D E G H B [ O I K R V V J K K P D [ R X X O I T C D P d C M P O D C X W X J D E P D T _ O Y P D T [ O I Q C I E P D C K M I R V M R I J E C D E E P K V P L X P D J E C L L I O C V S Q P M S V X J C I K M I C M J T P V O W N J V M P Y J K \ V O U L I J S J D K P Y J E R J E P X P T J D V J \ E J M C P X J E P D M J T I C M P O D L X C D D P D T \ C D E C K M I O D T [ O V R K O D V I J C M P D T C D E V C L M R I P D T Y C X R J V C D I J K R X M P D C Q P D [ O I U J U W J I C T J D V P J K C D E I C M J L C Z J I K M S I O R T S I J E R V J E V O K M K C D E O L J I C M P O D C X I P K c _ l S J K M I C M J T Z M S C M Q J C I J L I J K J D M P D T P D V X R E J K M S J [ P I K M K M J L O [ C K P D T X J P D M J T I C M J E U C D C T J U J D M M J C U M O C E U P D P K M J I W O M A B C D E G H B _ l S J L X C D P D V X R E J K R C I M J I X Z U J J M P D T K Q P M S W O M S b O C I E K M O I J Y P J Q L I O T I J K K \ U P X J K M O D J K \ C D E L J I [ O I U C D V J _ v s Š y p q s t p v p t x z n š t p n w q n t x s t s z r z n t p y s t y n t p J a P K M P D T U C D C T J U J D M L I C V M P V J K _ l S J [ P D C D V P C X T O C X [ O I H S C K J P K M O L I O E R V J [ [ I C U L K Q P X X g ` i i \ i i i P D V O K M K C Y P D T K P D h U O D M S K _ L O D E J U O D K M I C M J E K R V V J K K A B C D E G H B b O C I E K V C D V O D K P E J I U O Y P D T P D M O H S C K J O [ M S J P D M J T I C M P O D L X C D _ H S C K J W R P X E K R L O D T C P D J E K R V V J K K J K \ U J U O I P C X P d J K M S J P D M J T I C M J E U C D C T J U J D M M J C U \ J a C U P D J K O L L O I M R D P M P J K [ O I [ R I M S J I K M I J C U X P D P D T O [ O L J I C M P O D C D E C E U P D P K M I C M P O D \ C D E L I O Y P E J K L O M J D M P C X V C L P M C X K C Y P D T K _ H S C K J ` U O D M S K ¹ S C K C [ P D C D V P C X K C Y P D T T O C X O [ g U P X X P O D \ W R M C V M R C X K C Y P D T K V O R X E W J T I J C M J I _ H S C K J \ Q S P V S P K K V S J E R X J E M O X C R D V S C M U O D M S i \ J a L C D E K P D M O M S J O L L O I M R D P M P J K O [ P D V I J C K J E C K K J M R M P X P d C M P O D \ K Z K M J U P D M J I V O D D J V M P O D \ I J V Z V X J E Q C M J I C D E L O M C W X J I J R K J \ C D E O M S J I I J Y J D R J V I J C M P D T L O K K P W P X P M P J K _ l S J Y C X R J V I J C M P O D C K K O V P C M J E Q P M S C I J T P O D C X Q C M J I I J R K J L I O N J V M O I O M S J I I J T P O D C X K J I Y P V J L I O N J V M V O R X E W J K R W K M C P D M P C X _ J Y J I C T P D T M S J P D M J X X J V M R C X c D O Q X J E T J O A B K M C [ [ P D M S J C I J C K O [ ^ X C K K B W P O K O X P E K \ j E P T J K M P O D \ C D E I J D J Q C W X J J D J I T Z V O R L X J E Q P M S M S J P D M J X X J V M R C X c D O Q X J E T J O [ G H B K M C [ [ P D I J V Z V X J E Q C M J I C D E L O M C W X J I J R K J \ L I O Y P E J K M S J X J C E J I K S P L C D E c D O Q X J E T J I J R P I J E [ O I K R V V J K K _

12 SUPPLEMENTARY APPENDIX

13

14 SUPPLEMENTARY APPENDIX EXECUTIVE TEAM MICHAEL F. STEINLICHT Ë Ì Ì Í Î Ï Ð Ñ Ò Ó Ñ Ï Ñ Ô Õ Ö Õ Ï Õ Ø Ñ Ô Í Ï Õ Ô Ù Ú Û Ü Ý Þ Û ß Ü Î Ù Ú Õ Ñ Ö à á â Ð Ñ Î Ï Ö Î Ù Ú Ð ã Í Î Ï Ñ Ò Ð Ú Ñ ä Ï Ù Î Ï Õ Ð å æ ç è é ê ë ë ì æ é í î æ ï ï å ð ñ å í ò é ó é ô è é æ õ ï ó ö å ô ø è ñ å ù å æ í å ð ï î è ú û å æ ç ï è é ô å ì ü ü ê ý þ ð ý ÿ! " " # $ % $ & ' ( ) & " $ * # $ $ + $ " &, - + ), & $ % *. $ &, / % * ÿ : ; 5 < ÿ : ÿ, & =! ), $ # $ % $ & ' - & ) " &, > + ) + $ "? & + & $ " $ & $ % ÿ A 4 1 < 3 6 A B < ÿ C D C A D E ÿ F A 5 5 ÿ D D 4 < G ÿ 0 0 H G 2 9 ÿ 1 E A F B G B I 5 º» ¼ ¼ ½ ¾ ¾ À Á Â Ã Ä Å ¼ ¼ ¾ À Æ Ç È Å É Ê

15 SUPPLEMENTARY APPENDIX MICHAEL T. THORNTON, PE 5 ; [ ÿ 0 [ < A \ ÿ 0 < ] D D A 9 : : 4 D 5 I 4 4 A ; & "! & $ % ^ ' A G G A 4 5 I D A A 5 5 ; D & %!, ' = $ %, $ $ $ _ + / & $ ` / " & " E A B \ F 5 B a b b ] 5 I 4 A 4 D D D 1 4 A A 5 I A 9 ; c d B 1 9 : ÿ B < D A 8 ; 4 c C 1 6 A A < 4 ÿ : ÿ E A 5 < c B ÿ 1 4 ÿ A B 0 5 CHRISTOPHER A. TREES, PE 5 ; [ ÿ 0 < F 4 D 5 : 8 1 D A 9 : A D A 1 A D A 4 5 I D 4 4 B < [ 5 5 ; e A 4 4 D < [ ; D & %!, ' 4 4 < E A 1 d 0 B \ F 5 a ] 1 < 0 8 c 5 I A < 9 ÿ : B c d 5 J K L L M N O N P Q R S T U L L N P V W X U Y Z

16 SUPPLEMENTARY APPENDIX DEBBIE ALLEN : D D [ I 4 d 5 < 0 1 I d < 4 B 1 < ÿ B \ B ] 1 B < D g A D 4 h \ B ] 5 5 D E A 4 D 4 4 B ÿ E A 5 DEBRA BIGGS : D 9 [ 0 & + $ i j j j & $ =! & = $ # $ % $ & ' # k % l " m ; 4 b : c < B 2 A 1 B D c d A 2 A < 1 : 0 4 B 4 D A ÿ B < 4 1 D A 1 A ÿ A 4 < [ C A B A ÿ : c E : D 4 A D 4 5 DOUGLAS J. CAMPBELL : 5 B 4 D [ 0 & + $ n o o n & $ =! & = $ # $ % $ & ' B 4 D : # $ $ + $ " &, - + ), & $ % $ p l, ^ _ i j n i ) = $ k % l "! " " # $ % $ & ' m D A 1 ÿ B ÿ A 4 5 < B 4 D m D A q D 2 d 4 4 [ D D 4 4 m D A ÿ A q 5 B 4 D C 4 A 5 < B 4 D C 9 ; F B 4 D D 4 4 h r D A 5 J K L L M N O N P Q R S T U L L N P V W X U Y f

17 SUPPLEMENTARY APPENDIX GARRY J. PARKER A D 0 A t ÿ 5 A ÿ A 4 : ÿ 0 c A B D 1 B 5 A D ; A 4 \ ÿ B : ] A 5 I 4 g A 4 ÿ : B 1 D D 4 4 c D E A 5 I 4 4 D c \ c 0 2 ] 5 A D B c 0 4 \ B c 0 ] 6 u < ; B ; B 5 A D B c 0 D ÿ : ÿ B ÿ 5 I A < G 0 D < B c 0 7 b 5 KIRSTEN PLONKA H [ b : 0 5 < 0 1 H E 0 B A B D : 0 d D c : 5 ÿ D B 0 4 B < A 1 ÿ m 8 D < 0 ÿ B 5 LEEANN WARCHOL m c [ 0 & + $ i j j v & $ =! & = $ # $ % $ & ' c 4 ÿ < c 4 A < ÿ 5 < c C ÿ A B : r \ ÿ B : ] 4 H A 1 B 5 5 c D D 4 5 J K L L M N O N P Q R S T U L L N P V W X U Y s

18 SUPPLEMENTARY APPENDIX PAUL F. KINKEL, CPA 5 H C [ ÿ 0 < A 7 t 5 : D A 9 : 1 4 4, & " = " "! / # p? x ' ) $ _ % * $ &, & % % l $ " $ & % " 1 A 1 A D D A D D A C 9 < H C y A D 1 4 A 1 D 4 A I D \ z a b y q 1 7 ] ÿ : ÿ E A \ 7 e y ] 5 J K L L M N O N P Q R S T U L L N P V W X U Y w

19 AGENCY COMPARISON AT A GLANCE SUPPLEMENTARY APPENDIX } ~ } ƒ ˆ ˆ ƒ ~ Š Š Œ ƒ ˆ Ž Š ˆ ~ Š Š Œ ƒ ˆ Ž Š ˆ ƒ ˆ ƒ ƒ Š Š Š ƒ ƒ ˆ ƒ ƒ š œ ƒ ˆ ž ƒ Ÿ š ƒ ƒ Š Š ª ž ž ƒ Ÿ š Š «Š ƒ ƒ ž ƒ ˆ ƒ ƒ ƒ š Š Š ž ƒ ƒ ˆ ƒ ž ƒ š Š ª ž ž ƒ ± ž ƒ ž ª Š Ÿ š ² ³ ² Š š ² ² Š ž ƒ ƒ ˆ ƒ ž Š š ³ Š «² Š ƒ ƒ ˆ ƒ Š ƒ ƒ ƒ ž Š «ƒ ƒ ˆ ƒ Š ƒ ž Š ² ƒ µ ƒ ƒ ž Š ² ² ƒ ˆ ƒ ž Š ž Š ² «² ƒ ˆ Š } Š ƒ ƒ š œ } ƒ ž «««² ³ œ } } } ² š š ¹ ˆ ƒ ž ƒ ª ž ž ƒ ˆ ž ƒ Š Œ Ÿ º š š ² ² ««š œ ƒ ˆ ž ƒ ƒ ƒ ž ƒ ˆ ˆ Š ž ƒ ƒ ƒ œ ƒ ˆ ž ƒ ž ƒ ˆ ƒ ž ž Š ª ž ž «º º œ ƒ ˆ ž ƒ œ ƒ ž œ ž ƒ ƒ Š Š Š ˆ ƒ ª Š ˆ Š ˆ Š ˆ ž Š ƒ ž Š Œ ƒ ˆ ˆ Š Š ª ž ž «Š Š ƒ Š ƒ ž ƒ ˆ Š ˆ ž œ ƒ ˆ ž ƒ»» ¼ ½ ¾ À Á Â Ã Ä Å Æ Ç È É Ê Ë Ì Â Á Í Í Î Ï Ë Ê Ð Ñ Ë Ê Â Ì Ë À Ë Â Á À Ë Ê Á Ò Ó Ô Ó Ô Õ J K L L M N O N P Q R S T U L L N P V W X U Y {

20 SUPPLEMENTARY APPENDIX SERVICE AREA MAPS SEJPA RECYCLED WATER SERVICE AREA J K L L M N O N P Q R S T U L L N P V W X U Y Ö

21 SUPPLEMENTARY APPENDIX SEJPA SANITARY SEWER SERVICE AREA J K L L M N O N P Q R S T U L L N P V W X U Y

22 SUPPLEMENTARY APPENDIX è ã ç ENCINA WASTEWATER AUTHORITY SERVICE AREA äå æ Þ ÚÜ Ú ã ß à áâ Þ ÝÜ Û ÚÜ Ø Ù