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ATTY/RESO.0109/CC RESO WATER RATES REV: 11-05-25 MI Page 5 of 5 8. The City Council has evaluated and adopts the water service rates set forth as Exhibit B to the Resolution, and they are incorporated by this reference, to become effective January 1, 2026, January 1, 2027, and January 1, 2028. 9. Any San Francisco Public Utility Commission (“SFPUC”) changes in the wholesale water rate which are greater or less than what was assumed in the rate study may be passed through to water ratepayers, by including the change in the City’s water usage rates. Currently, the SFPUC’s wholesale water rate is projected to be $5.86 per HCF effective July 1, 2026, and $5.93 per HCF effective July 1, 2027. Pursuant to California Government Code Section 53756, the City may pass through any variations to the projected SFPUC wholesale water rates through the City’s water usage rates. A pass-through adjustment may be implemented by increasing or decreasing the City’s proposed water use charges by the amount of the actual SFPUC wholesale water rate change, in cents per HCF, in excess or below the projected SFPUC wholesale rates for July 1, 2026 and July 1, 2027. For example, if the SFPUC raises its wholesale water rate to $5.96 per HCF on July 1, 2026 (instead of the projected $5.86 per HCF), the City may increase its water usage rates by an additional $0.10 per HCF on or after July 1, 2026. Pursuant to Government Code section 53756(d), notice must be given at least thirty (30) days prior to any water rate adjustment occurring pursuant to the adopted water rate schedule or as a result of the pass through of SFPUC wholesale rate increases. 10. If any section, subsection, subdivision, sentence, clause, or phrase in this Resolution or any part thereof is for any reason held to be unconstitutional or invalid, or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Resolution or any part thereof. The City Council hereby declares that it would have adopted each section irrespective of the fact that any one or more subsections, subdivisions, sentences, clauses, or phrases be declared unconstitutional, invalid, or ineffective. 11. This Resolution shall take effect immediately upon its adoption. The rates will take effect on January 1, 2026, January 1, 2027, and January 1, 2028, as specified in Exhibit B. * * *