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REV: 08-25-2022 RL Proposition 218 Notice At least six weeks prior to the planned date of mailing, Consultant shall draft a Proposition 218 notice, which shall include, but is not limited to, a 120-day statute of limitations for challenging the rates, a rate comparison with other cities, and other charts or similar visuals where appropriate. Consultant shall incorporate any feedback after review from the Public Works Director or their designee(s) and submit a final notice to the Public Works Director or their designee(s) two weeks prior to the planned date of mailing. One Proposition 218 notice will be mailed for both water and sewer utilities. Draft and Final Reports At least two months prior to the mailing of the Proposition 218 notice, Consultant shall document the results of their analysis in a Draft Report, which shall be provided for review in Word or Excel file formats to the Public Works Director or their designee(s). The documentation shall explain how the methodology complies with Proposition 218, relevant court decisions, and other assumptions. Consultant shall revise the Draft Report accordingly, based on input from the Public Works Director or their designee(s) and any relevant policy bodies, and a Final Report will be published in PDF format. The Final Report shall be finalized by the Consultant prior to the mailing of the Proposition 218 notice. Implementation Consultant shall conduct two community meetings with City staff to present proposed rate adjustments. Each meeting shall review the rate study goals and objectives, summarize the costs and revenues of each utility, and the proposed rate increases and bill impacts. Consultant shall work with City staff to determine when best to schedule these meetings. Meetings shall either be via video conference and/or in-person, as determined by the Public Works Director or their designee(s). Consultant shall revise (if necessary) the presentation made to the Utilities Sub- Committee to present final findings and recommendations to the City Council. The final presentation shall be finalized by the Consultant prior to the mailing of the Proposition 218 notice. Consultant shall be available to attend either via video conference or in- person, as determined by the Public Works Director or their designee(s), during the public hearing at the end of the 45-day protest period to answer questions and request the adoption of the proposed sewer rates. Municipal Code Review Consultant shall review and recommend changes to the appropriate chapter of the City’s Municipal Code to reflect the rate changes, as applicable. Deliverables: Consultant shall provide: •Bi-weekly staff status meetings •Brief memo of preliminary findings and recommendations •Presentation to Utilities Sub-Committee •Proposition 218 notice ATTY/AGR.2022.318/HF&H Consultants, LLC (Page 14 of 27)