Agmt24 HF&H Consultants, LLC Amendment No.2

Browse Search

REV: 10-09-24 MI tiered rate based on the actual SFPUC per-unit cost of water, once the actual rates have been adopted by the SFPUC. Deliverables: Consultant shall provide a pass-through adjustment worksheet included in the rate model and have sections explaining the mechanism in the Final Report and Prop 218 Notice. Task 6g. Drought Rates In order to stabilize rate revenue and ensure sufficient revenue for operations and to complete necessary capital improvements, Consultant shall consider potential rate stabilization factors (or “drought rate factors”) to be used during times of water shortages. Consultant shall develop the rate stabilization multipliers to maintain revenue neutrality during water shortages. Consultant shall develop demand reduction factors, by customer class, which get applied to non-shortage rates in effect at the time the shortage is declared. These factors shall take into consideration the fixed cost component within the volumetric rates that will not change as water use decreases. Consultant analysis shall take into consideration water necessary for health and safety versus more discretionary uses (i.e., water used for irrigation purposes). Consultant shall develop multipliers for each shortage stage in the City’s Water Shortage Contingency Plan so that rates can be increased to offset conservation reductions in each stage, as determined by City Council. The multipliers could be applied when the State or City Council requires its customers to reduce consumption. Consultant shall include drought rates in the public hearing notice so that the City can make revenue neutral adjustments without triggering a full Proposition 218 process. Deliverables: Consultant shall provide drought rates included in the rate model, Final Report, and Prop 218 Notice. Task 6h. Communicate Results The Public Works Director or their designee(s) shall be provided a minimum of three- weeks to review and comment on initial draft results and a minimum of one-week to review and comment on second draft results. Project Status Meetings Consultant shall provide status updates to City staff to communicate progress on tasks and ensure alignment with staff direction and timing. During the kick-off meeting, Consultant shall establish a day and time for standing one hour check-in calls with staff every two weeks. These meetings are intended to obtain staff input and develop solutions that will be accepted by City Council and ratepayers. Presentation to Utilities Sub-Committee At least one months prior to the meeting, using a City template, Consultant shall prepare a PowerPoint presentation with basic, conceptual rate designs and recommendations for a Utilities Sub-Committee meeting, for review by the Public Works Director or their designee(s). Consultant shall incorporate any feedback from City staff prior to ATTY/AGR.2024/Amend. No. 2/HF&H Consultants, LLC (Water Rate and Capacity Fee Study) (Page 7 of 13)