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REV: 02-06-26 MI EXHIBIT “A” SCOPE OF SERVICES AND FEE I. SCOPE OF SERVICES Consultant shall perform a sewer rate fee study, with any new sewer rates expected to be effective beginning July 1, 2027, and a public hearing scheduled in March 2027. Consultant attendance of any meetings will be virtual, and travel will not be necessary to communicate the results of this scope of work in-person. Task 1 – Kickoff Meeting Consultant shall conduct a project virtual kickoff meeting with City staff to introduce participants and identify their project roles and expectations. Meeting topics shall include discussions evaluating relevant fiscal policies and community interests, identifying current issues and concerns (financial and operational), discussing project scope, timing, and deliverables, and requesting and compiling all relevant and required data. Deliverables: Consultant shall provide: •A data request list ahead of the meeting for the purposes of discussion •Meeting notes Task 2 – Develop Financial Model Consultant shall prepare a 10-year financial planning model projecting the operating and maintenance and capital expenses, operating and non-operating revenue, and reserve fund balances. Expenses will be based on the City’s budget, capital improvement program, and any relevant master plans. Consultant shall develop the models to be as simple as possible and with input from the Public Works Director or their designee(s) to ensure that they meet the City’s needs. For specific elements: •Expenses: Consultant shall tailor expense calculations to reflect variations in staffing levels, salaries, operating expenses and other City requested inputs. Consultant shall incorporate Silicon Valley Clean Water (SVCW) expenses into the model and consider how future development impacts the SVCW costs as well as the City’s. Expenses shall also include debt service and software. •Revenues: Consultant shall calculate and project rate revenue based on the current rate structure and projected growth in units of service (e.g., service connection size, number of dwelling units, commercial water use by class). •Reserves: Consultant shall integrate current reserve funds into the model and evaluate existing policies, as well as the need for adding, deleting, or redefining the funds. Consultant shall confirm the reserve level rules for modeling the rate increases, which will either reflect current policies or recommended policies. Consultant shall assess the City’s reserve and consider creating a new reserve target. ATTY/AGR.2026.032/HF&H Consultants, LLC (Sewer Rate Study 2026-2027) (Page 11 of 16)