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Council approves SARA amendment, moves to new 'FAB' billing method; ordinances to follow
Summary
National City approved the 2nd Amended and Restated Regional Wastewater Disposal Agreement (SARA) and Administrative Agreement No. 1, which introduces a function-and‑usage ("FAB") billing method for cost allocation tied to Pure Water phases; staff said ordinance updates will follow and July 1 is a target for implementation if member agencies concur.
The council adopted two resolutions on Feb. 3 to join a revised regional wastewater agreement and a companion administrative agreement that change how member agencies share costs for Metro wastewater facilities.
Assistant City Manager/Acting Deputy Director Martha Juarez and technical consultant Carmen Kastner summarized the 2nd Amended and Restated Agreement (SARA) and Administrative Agreement No. 1. Kastner told the council the updated agreements create a new billing methodology — described as a function-and‑usage or “FAB” approach — that allocates costs across treatment functions and peak flows rather than relying only on flow-and‑strength formulas that dated to 1998.
Kastner said the changes aim to reflect Pure Water program phases and East County JPA advanced purification coming online. The administrative agreement expands San Diego’s role in industrial pretreatment and establishes a process for administrative amendments so routine updates do not require unanimous approval by all member agencies.
Staff told the council the FAB billing method does not by itself raise rates, though the city’s share of wastewater may change as East County flows are integrated; ordinance updates to align National City’s municipal code will be returned in the April–May timeframe. The council approved both measures by roll call.
Next steps: staff will bring required ordinance updates and monitor other agencies’ approvals; city staff emphasized there is one remaining agency holdout in the regional process and that staff are working to secure concurrence.
