Agmt24 HF&H Consultants, LLC Amendment No.2

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REV: 10-09-24 MI Consultant shall clearly indicate: 1) how much the overall revenue requirement changes; 2) how much the cost-of-service changes for each customer class; 3) how much the rates change for each customer class; and 4) how much customer bills change for representative customers. The cost-of-service analyses shall allocate the revenue requirements between the fixed and volumetric charges, as well as among the various customer classes. Consultant shall work closely with City staff to develop allocation factors based on usage data for each class. Consultant shall compare the result with the revenue from current charges to determine the difference Deliverables: Consultant shall provide cost-of-service analyses that will be integrated into the 10-year water and recycled water financial model developed for Task 6b. Task 6d. Rate Design and Bill Impacts Consultant shall present a five-year rate design so that impacts are easily understood by staff, elected officials, and rate payers. Consultant shall compare rate structure alternatives with the current rate structure and with comparable agencies’ rate structures, including all BAWSCA members. Consultant shall also compare the customer bills produced by those rate structures. For both comparisons, Consultant shall use tabular and graphical techniques to clearly communicate the differences. Deliverables: Consultant shall provide proposed five-year rates, customer bill impacts, and bill comparisons integrated into the 10-year water and recycled water model developed for Task 6b. Task 6e. Comparison of Water Rates with Neighboring Jurisdictions Consultant shall prepare a rate comparison analysis to illustrate how the City’s current and proposed water rates comparing to neighboring jurisdictions. Consultant shall confirm with City staff the comparison agencies to include. Deliverables: Consultant shall provide charts and tables comparing rates to be included in the rate model, presentations, Final Report, and Prop 218 notice. Task 6f. Pass-through Adjustment To mitigate the impacts of unanticipated increases in the cost of purchased water, Consultant shall develop an SFPUC pass-through rate adjustment methodology to recoup the additional costs without triggering a Proposition 218 protest process. The City will only be required to provide a minimum 30-day notice of the change in water consumption rates to all rate payers, such as through a bill insert. Consultant shall build a pass-through worksheet within the Excel rate model which summarizes the per-unit cost of SFPUC water, which is included in each tier of the water rates that are adopted by the City Council and the annual adjustment necessary to each ATTY/AGR.2024/Amend. No. 2/HF&H Consultants, LLC (Water Rate and Capacity Fee Study) (Page 6 of 13)