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REV: 08-25-2022 RL At least two months prior to the mailing of the Proposition 218 notice, using a City template, Consultant shall prepare a PowerPoint presentation with basic, conceptual rate designs and recommendations for a rate workshop with the City’s Utilities Sub- Committee, for review by the Public Works Director or their designee(s). Consultant shall incorporate any feedback from City staff prior to presentation of the final slides to the Utilities Sub-Committee. Consultant may present the slides to the committee and either via video conference and/or in-person, as determined by the Public Works Director or their designee(s). Consultant shall revise the presentation made to the Utilities Sub-Committee based on the committee’s feedback and present final findings and recommendations during a subsequent Utilities Sub-Committee meeting in Q1 of 2023 either via video conference and/or in-person, as determined by the Public Works Director or their designee(s). 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 the 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 planned mailing date 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 format 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 staff and any appropriate 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 ATTY/AGR.2022.318/HF&H Consultants, LLC (Page 18 of 27)