Municipal Rates and Utilities Committee (MRUC)

Municipal Rates and Utilities Committee Regular Meeting of July 25, 2024 MINUTES Page 1 of 3 The public may participate and provide public comments in person or via Zoom Meeting. Please be advised that when all Committee Members are attending the meeting in person, the teleconferencing option is provided as a courtesy to the public. If, for any reason, there are technical difficulties, the Municipal Rates and Utilities Committee meeting will continue in person, provided there is a quorum at the meeting. One tap mobile: +16699006833,,86993830361# US (San Jose) Dial by your location: +1 669 900 6833 US (San Jose) Meeting ID: 869 9383 0361 https://us06web.zoom.us/j/86993830361 Written comments that are received by 5:00 PM. on the Monday before the Municipal Rates and Utilities Committee meeting will be disseminated to the Commission and made available to the public for review on the city’s website. Please provide the agenda item number in the subject line of your email or letter. Public comments will no longer be read into the record. Comments must be sent to municipalrates@ci.rio-vista.ca.us. If you do not have access to a computer, please contact Krystine Ball at 707-374-6447, to make alternative arrangements to submit public comment.

Municipal Rates and Utilities Committee Regular Meeting of July 25, 2024 MINUTES Page 2 of 3 RIO VISTA MUNICIPAL RATES AND UTILITIES COMMITTEE CHAIRMAN EDWIN OKAMURA VICE CHAIR CHRIS ARMBRUST RICK DOLK HECTOR DELAROSA MICHELLE STAHLMAN REGULAR MEETING BY TELECONFERENCE AND IN PERSON MINUTES THURSDAY, July 25, 2024 6:00 pm CITY HALL COUNCIL CHAMBERS ONE MAIN STREET RIO VISTA, CALIFORNIA 94571 1. CALL TO ORDER – ROLL CALL – PLEDGE OF ALLEGIANCE PRESENT: Chairman Edwin Okamura, Vice Chairman Chris Armbrust, Committee Members, Rick Dolk, Hector Delarosa ABSENT: Michelle Stahlman Chairman Okamura opened the meeting at 6:22 PM *Due to audio issues the meeting was delayed 2. PUBLIC COMMENT Public Comment was not received 3. DISCLOSURE OF EX PARTE COMMUNICATIONS Ex Parte Communications were not made Chairman Okamura and Committee member Delarosa disclosed that they did a tour of the wastewater treatment plant that was led by Veolia. Committee member Delarosa also sent follow up communications to Veolia. 4. ACTION ITEMS 4.1. Approve Minutes from June 27, 2024

Municipal Rates and Utilities Committee Regular Meeting of July 25, 2024 MINUTES Page 3 of 3 Motion to approve the amended minutes from June 27, 2024, was made by committee member Delarosa and second by committee member Dolk and passed by the following roll call vote: AYES: Chairman Edwin Okamura, Vice Chairman Chris Armbrust, Committee Members, Rick Dolk, Hector Delarosa NOES: None ABSENT: Michelle Stahlman 5. DISCUSSION ITEMS 5.1. Sub-Committee update Vicechair Armbrust and Committee member Delarosa met with Michelle from Civic Mic on July 25, 2024, and discussed the following with Civic Mic • Reminder of the Storm Drain fees that are due August 1, 2024 • How to send in the ballot and or make corrections to a ballot • Review a draft of the Water Rate page • Promoting rates and engaging the community by consistent outreach 5.2. Consider recommending to the City Council the proposed Northwest and Beach Plant Sewer Rates. Committee Members heard a presentation from NBS that discussed the Sewer Rate presentation. Committee members commented and asked questions about the presentation. Contract Civil Engineer, Curtis Lam, Principal Engineer with Hydro Science presented information to the committee regarding the State Revolving Loan Fund. Committee members commented and asked questions. A motion was made by Committee member Dolk to recommend the proposed Northwest and Beach Plant Sewer Rates to City Council for final approval and second by Vice Chair Armbrust and passed by the following roll call vote: AYES: Chairman Edwin Okamura, Vice Chairman Chris Armbrust, Committee Member Rick Dolk NOES: Hector Delarosa ABSENT: Michelle Stahlman 6. FUTURE AGENDA ITEMS • Community outreach 7. ADJOURNMENT Chairman Okamura adjourned the meeting at 7: 55 PM ______________________________________ Krystine Ball, Municipal Rates and Utilities Committee Clerk Krystine Ball

Municipal Rates and Utilities Committee Regular Meeting of July 25, 2024 Page 1 of 3 The public may participate and provide public comments in person or via Zoom Meeting. Please be advised that when all Committee Members are attending the meeting in person, the teleconferencing option is provided as a courtesy to the public. If, for any reason, there are technical difficulties, the Municipal Rates and Utilities Committee meeting will continue in person, provided there is a quorum at the meeting. One tap mobile: +16699006833,,86993830361# US (San Jose) Dial by your location: +1 669 900 6833 US (San Jose) Meeting ID: 869 9383 0361 https://us06web.zoom.us/j/86993830361 Written comments that are received by 5:00 PM. on the Monday before the Municipal Rates and Utilities Committee meeting will be disseminated to the Commission and made available to the public for review on the city’s website. Please provide the agenda item number in the subject line of your email or letter. Public comments will no longer be read into the record. Comments must be sent to municipalrates@ci.rio-vista.ca.us. If you do not have access to a computer, please contact Krystine Ball at 707-374-6447, to make alternative arrangements to submit public comment.

Municipal Rates and Utilities Committee Regular Meeting of July 25, 2024 Page 2 of 3 RIO VISTA MUNICIPAL RATES AND UTILITIES COMMITTEE CHAIRMAN EDWIN OKAMURA VICE CHAIR CHRIS ARMBRUST RICK DOLK HECTOR DELAROSA MICHELLE STAHLMAN REGULAR MEETING BY TELECONFERENCE AND IN PERSON AGENDA THURSDAY, July 25, 2024 6:00 pm CITY HALL COUNCIL CHAMBERS ONE MAIN STREET RIO VISTA, CALIFORNIA 94571 1. CALL TO ORDER – ROLL CALL – PLEDGE OF ALLEGIANCE 2. PUBLIC COMMENT – See instructions at top of this agenda page 3. DISCLOSURE OF EX PARTE COMMUNICATIONS Municipal Rates and Utilities Committee Members should disclose any communications they have had on the agenda items at this time. 4. ACTION ITEMS 4.1. Approve Minutes from June 27, 2024 5. DISCUSSION ITEMS 5.1. Sub-Committee update 5.2. Consider recommending to the City Council the proposed Northwest and Beach Plant Sewer Rates. 6. FUTURE AGENDA ITEMS 7. ADJOURNMENT

Municipal Rates and Utilities Committee Regular Meeting of July 25, 2024 Page 3 of 3 Disclosable public records related to an open session item on a meeting agenda distributed by the City of Rio Vista to the Rio Vista Municipal Rates and Utilities Committee are available on the city’s website & at City Hall for public review at 72 hours prior to a regular meeting and 24 hours prior to a special meeting or, in the event information is delivered to the Commission less than 72 or 24 hours prior to an open meeting, as soon as it is so delivered. To arrange for an alternative agenda document format or to arrange aid or services to modify or accommodate persons with a disability to participate in a public meeting contact the Commission Clerk 48 hours in advance of the meeting date by calling (707) 374-6447. Pursuant to applicable laws and regulations, including without limitation, California Government Code Section 65009 and or California Public Resources Code Section 21177, if you wish to challenge in court any of the above decisions (including any action regarding planning, zoning and/or environmental decisions), you may be limited to raising only those issues you or someone else raised at the public hearing(s) described in this notice/agenda, or in written correspondence delivered to the City at, or prior to, the public hearing. CERTIFICATION OF POSTING – I, Pam Caronongan, City Clerk for the City of Rio Vista (on behalf of Krystine Ball, Municipal Rates and Utilities Committee Clerk), declare that the foregoing agenda for the July 25, 2024, Regular Meeting of the Rio Vista Municipal Rates and Utilities Committee was posted and available for review on July 18, 2024, on the city’s website and at City Hall, One Main Street, Rio Vista, California, in accordance with Government Code §54954.2(a).

Municipal Rates and Utilities Committee Regular Meeting DRAFT MINUTES of June 27, 2024 Page 1 of 3 The public may participate and provide public comments in person or via Zoom Meeting. Please be advised that when all Committee Members are attending the meeting in person, the teleconferencing option is provided as a courtesy to the public. If, for any reason, there are technical difficulties, the Municipal Rates and Utilities Committee meeting will continue in person, provided there is a quorum at the meeting. One tap mobile: +16699006833,,86993830361# US (San Jose) Dial by your location: +1 669 900 6833 US (San Jose) Meeting ID: 869 9383 0361 https://us06web.zoom.us/j/86993830361 Written comments that are received by 5:00 PM. on the Monday before the Municipal Rates and Utilities Committee meeting will be disseminated to the Commission and made available to the public for review on the city’s website. Please provide the agenda item number in the subject line of your email or letter. Public comments will no longer be read into the record. Comments must be sent to municipalrates@ci.rio-vista.ca.us. If you do not have access to a computer, please contact Krystine Ball at 707-374-6447, to make alternative arrangements to submit public comment.

Municipal Rates and Utilities Committee Regular Meeting DRAFT MINUTES of June 27, 2024 Page 2 of 3 RIO VISTA MUNICIPAL RATES AND UTILITIES COMMITTEE CHAIRMAN EDWIN OKAMURA VICE CHAIR CHRIS ARMBRUST RICK DOLK HECTOR DELAROSA MICHELLE STAHLMAN REGULAR MEETING BY TELECONFERENCE AND IN PERSON DRAFT MINUTES THURSDAY, June 27, 2024 6:00 pm CITY HALL COUNCIL CHAMBERS ONE MAIN STREET RIO VISTA, CALIFORNIA 94571 1. CALL TO ORDER – ROLL CALL – PLEDGE OF ALLEGIANCE PRESENT: Chairman Edwin Okamura, Vice Chairman Chris Armbrust, Committee Members, Rick Dolk, Hector Delarosa, and Michelle Stahlman ABSENT: None Chairman Okamura opened the meeting at 6:00 PM 2. PUBLIC COMMENT Public Comment was not received 3. DISCLOSURE OF EX PARTE COMMUNICATIONS Ex Parte Communications were not made 4. ACTION ITEMS 4.1. Approve Minutes from May 23, 2024 Motion to approve by committee member Dolk and second by committee member Stahlman to approve, May 23, 2024, regular Meeting Minutes passed by the following roll call vote: AYES: Chairman Edwin Okamura, Vice Chairman Chris Armbrust, Committee Members, Rick Dolk, Hector Delarosa, and Michelle Stahlman

Municipal Rates and Utilities Committee Regular Meeting DRAFT MINUTES of June 27, 2024 Page 3 of 3 NOES: None ABSENT: None 5. DISCUSSION ITEMS 5.1. Sub-Committee update Vicechair Armbrust and Committee member Delarosa met with Michelle from Civic Mic on June 27, 2024, and discussed and recommended to Civic Mic the following: • Mailing of Ballots • Making sure the study is transparent to the community members through Civic Mic • The Sub-committee recommended that the Water Rate study should be posted on the website prior to City Council approval to allow the community to review the recommended rates and all of the information prior to the final approval . 5.2. Sewer Rate Presentation Committee Members heard a presentation from NBS that discussed the Sewer Rate presentation. Committee members commented and asked questions about the presentation. The following staff members were present to answer the committees questions: Jen Lee, City of Rio Vista Finance Director, Cecil Dillion, Contract Civil Engineer, Curtis Lam , Principal Engineer with Hydro Science. Public Comment was received throughout the meeting. At the next meeting the committee requested more information about the State Revolving Loan Fund. 6. FUTURE AGENDA ITEMS 6.1. Recommendation of Sewer Rates 7. ADJOURNMENT Chairman Okamura adjourned the meeting at 7:30 PM ________________________________________________ Krystine Ball, Municipal Rates and Utilities Committee Clerk

Sewer Rate Study Presented by: Sara Mares Director, NBS

2 Agenda Draft Rate Design Results Rate Study Methodology Financial Plan Cost-of-Service Analysis

3 Rate Study Methodology Here, the city works out how to fairly split the cost of its services between all the people who use them. It's about making sure everyone pays an amount that's right for the service they get, and that all laws and regulations are followed. Cost of Service AnalysisThis step examines how much money the city has coming in and what's going out. It helps figure out how much the city needs to charge for its services and thinks about any changes that might need to be made in the future. Financial Plan The last part is about deciding the best way to charge people for city services so that the city collects enough money to cover its costs. It's all about creating a fair system that works for everyone. Rate Design Analysis

4 Operations and Maintenance (O&M) Bucket: This is the first bucket. It covers the costs of running and maintaining the service or infrastructure. The day-to- day expenses to keep things going. Rate-Funded Capital or Other Expenditures Bucket: If there's money left over after filling the first two buckets, it can then be allocated to other areas in the water enterprise such as pay-as-you-go rate-funded capital projects. Capital Reserves Bucket: Once O&M is funded, the money can flow to the next bucket. This bucket is for capital reserves, used for future significant investments or infrastructure upgrades. Financial Plan – Sewer Utility Revenue: The total income generated from customer service rates to cover operational expenses, debt repayments, and capital projects, minus alternative income sources like fees and fines. It includes a provision for reserves to ensure the utility's long-term financial stability and service reliability. Utility Revenue Other Expenditures

5 Financial Plan – Sewer

6 Financial Plan – Sewer Projected Operating & Maintenance Expenses Northwest FUND CATEGORY Basis FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 NW WWTP COLLECTION SYSTEM AND LIFT STATIONS Salaries & Wages 3 164,877$ 193,734$ 213,548$ 219,997$ 226,641$ 233,486$ 240,537$ 247,801$ Part time - Salaries & Wages 3 - - - - - - - - Overtime 3 5,441 6,398 4,672 4,813 4,959 5,109 5,263 5,422 Clothing & Work Boots 3 - - - - - - - - Dental Insurance 3 3,074 3,208 3,476 3,581 3,689 3,800 3,915 4,033 Health Insurance 3 25,760 30,243 36,551 37,655 38,792 39,964 41,170 42,414 Life Insurance 3 372 380 485 500 515 530 546 563 Employee Assistance Program 3 52 55 56 58 60 62 63 65 Vision Insurance 3 365 373 446 460 474 488 503 518 PERS Retirement 3 31,837 38,598 39,350 40,538 41,762 43,024 44,323 45,661 Social Security/FICA 3 12,264 13,447 15,074 15,529 15,998 16,481 16,979 17,492 Workers Comp. Insurance 3 10,140 9,752 10,948 11,278 11,619 11,970 12,331 12,704 State Unemployment Insurance 3 1,050 2,240 1,650 1,700 1,751 1,804 1,859 1,915 Boot/Uniform/Equipment Allowance 3 996 883 1,775 1,829 1,884 1,941 1,999 2,060 Accounting & Auditing 2 - - - - - - - Administrative Expense - ABM Loan 2 - - - - - - - Advertising 2 - - - - - - - Legal Fees 2 196 7,114 2,000 2,069 2,140 2,214 2,291 2,370 Bond Issuance Costs 2 - - - - - - - - Printing 2 - - 200 207 214 221 229 237 Contractual Services 2 106,056 161,618 22,500 23,276 24,079 24,910 25,769 26,658 Veolia- Contractual services 2 - - 79,129 81,859 84,683 87,605 90,627 93,754 Evidence Expenses 2 - - 17,000 17,587 18,193 18,821 19,470 20,142 Equipment Rental 2 (1,151) 6,052 8,000 8,276 8,562 8,857 9,162 9,479 Equipment (Non-Capital,<$5,000) 2 321 1,577 2,000 2,069 2,140 2,214 2,291 2,370 Fuel & Mileage 7 2,052 1,701 2,000 2,142 2,293 2,455 2,629 2,815 Flood & Fire Insurance 2 3,169 4,362 5,972 6,178 6,392 6,612 6,840 7,076 Liability Insurance 2 6,211 7,365 9,196 9,513 9,841 10,181 10,532 10,895 Finance Charge - Collection fee 2 - - 100 103 107 111 115 118 M & R Machinery & Equipment 2 24,670 39,814 25,000 25,863 26,755 27,678 28,633 29,621 M & R Real Property 2 3,313 9,490 10,000 10,345 10,702 11,071 11,453 11,848 Emergency Repairs 2 41,069 14,124 50,000 51,725 53,510 55,356 57,265 59,241 M&R Vehicles 2 897 1,656 4,000 4,138 4,281 4,428 4,581 4,739 Membership Dues 2 - - 1,100 1,138 1,177 1,218 1,260 1,303 Misc. Services & Supplies 2 352 2,755 3,000 3,104 3,211 3,321 3,436 3,554 Office Supplies & Materials 2 - - 500 517 535 554 573 592 Permits & Licenses 2 - 3,087 10,000 10,345 10,702 11,071 11,453 11,848 Telephone 2 517 694 2,500 2,586 2,675 2,768 2,863 2,962 Utilities - PG&E 6 21,043 81,111 41,000 44,424 48,133 52,153 56,508 61,227 Utilities - City Water Services 6 1,052 1,051 1,100 1,192 1,291 1,399 1,516 1,643 Capital Outlay - Mach & Equip 8 - - - - - - - - Capital Outlay - Vehicles 8 - - 32,500 33,638 34,815 36,033 37,294 38,600 Loan - Lease Payment - Principal Exh. 3 - - - - - - - - Loan - Lease Payment - Interest Exh. 3 - - - - - - - - TOTAL: NW WWTP COLLECTION SYSTEM AND LIFT STATIONS 465,992$ 642,882$ 656,828$ 680,230$ 704,575$ 729,909$ 756,280$ 783,740$

7 Financial Plan – Sewer Projected Operating & Maintenance Expenses Northwest FUND CATEGORY Basis FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 SEWER TREATMENT PLANT Salaries & Wages 3 112,583$ 137,816$ 128,709$ 132,596$ 136,600$ 140,726$ 144,975$ 149,354$ Overtime 3 2,623 3,114 2,322 2,392 2,465 2,539 2,616 2,695 Clothing & Work Boots 3 - - - - - - - - Dental Insurance 3 2,001 2,042 2,075 2,137 2,202 2,269 2,337 2,408 Health Insurance 3 13,880 18,833 21,420 22,067 22,733 23,420 24,127 24,856 Life Insurance 3 259 281 292 301 310 319 329 339 Employee Assistance Program 3 31 36 37 38 39 40 41 42 Vision Insurance 3 258 267 269 277 285 294 303 312 PERS Retirement 3 17,143 21,473 19,309 19,893 20,493 21,112 21,750 22,407 Social Security/FICA 3 8,182 9,345 9,653 9,944 10,244 10,554 10,873 11,201 Workers Comp. Insurance 3 6,541 6,428 7,101 7,315 7,536 7,764 7,998 8,240 State Unemployment Insurance 3 - - - - - - - - Accounting & Auditing 2 5,895 6,286 6,466 6,689 6,920 7,159 7,406 7,661 Legal Fees 2 196 - - - - - - - Bond Issuance Costs Exh. 3 - - - - - - - Chemicals & Gases 4 24,214 35,932 23,641 24,929 26,287 27,718 29,228 30,820 Contractual Services 2 693,224 758,936 146,843 151,909 157,150 162,572 168,180 173,983 Veolia- Contractual services 2 22,307 32,974 619,865 641,250 663,373 686,259 709,935 734,428 Property Tax 2 1,757 4,850 3,907 4,042 4,181 4,325 4,475 4,629 Debt Service - Principal 2 - - 70,878 73,324 75,853 78,470 81,178 83,978 Debt Service - Interest 2 26,278 24,846 23,728 24,546 25,393 26,269 27,175 28,113 Equipment Rental 2 3,873 3,810 4,000 4,138 4,281 4,428 4,581 4,739 Equipment (Non-Capital,<$5,000) 2 - 5,000 25,000 25,863 26,755 27,678 28,633 29,621 Fuel & Mileage 7 3,180 10,178 3,000 3,212 3,440 3,683 3,944 4,223 Flood & Fire Insurance 2 24,143 33,227 45,496 47,066 48,690 50,369 52,107 53,905 Liability Insurance 2 32,849 38,742 48,408 50,078 51,805 53,593 55,442 57,354 Legal Notices & Publications 2 - 270 6,000 6,207 6,421 6,643 6,872 7,109 M & R Machinery & Equipment 2 198,250 307,027 150,000 155,175 160,529 166,067 171,796 177,723 M & R Real Property 2 18,748 27,275 160,000 165,520 171,230 177,138 183,249 189,571 Office Supplies & Materials 2 6,067 5,532 7,000 7,242 7,491 7,750 8,017 8,294 Computer Hardware 2 - - - - - - - Computer Software 2 31,683 34,569 25,376 26,251 27,157 28,094 29,063 30,066 Permits & Licenses 2 34,933 29,264 35,000 36,208 37,457 38,749 40,086 41,469 Postage 2 1,197 1,375 2,000 2,069 2,140 2,214 2,291 2,370 Telephone 2 19,156 15,612 22,500 23,276 24,079 24,910 25,769 26,658 Utilities - PG&E 6 146,206 205,133 50,000 54,175 58,699 63,601 68,912 74,667 Utilities - City Water Services 6 - 4,593 - - - - - - Solar Energy 5 136,053 101,831 110,000 121,925 135,143 149,793 166,032 184,031 Emergency Repairs 2 3,370 2,025 50,000 51,725 53,510 55,356 57,265 59,241 TOTAL: SEWER TREATMENT PLANT 1,597,082$ 1,888,921$ 1,830,294$ 1,903,778$ 1,980,892$ 2,061,875$ 2,146,986$ 2,236,506$

8 Financial Plan – Sewer Projected Operating & Maintenance Expenses Beach FUND CATEGORY Basis FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 WWTP COLLECTION SYSTEM AND LIFT STATIONS Salaries & Wages 3 226,016$ 269,726$ 318,752$ 328,379$ 338,296$ 348,512$ 359,037$ 369,880$ Part time - Salaries & Wages 3 - - - - - - - - Overtime 3 8,638 12,503 8,286 8,536 8,794 9,059 9,333 9,615 Clothing & Work Boots 3 - - - - - - - - Dental Insurance 3 4,177 4,413 5,075 5,228 5,386 5,549 5,717 5,889 Health Insurance 3 39,904 41,503 54,270 55,909 57,597 59,337 61,129 62,975 Life Insurance 3 522 537 788 812 836 862 888 914 Employee Assistance Program 3 85 85 84 87 89 92 95 98 Vision Insurance 3 506 516 725 747 770 793 817 842 PERS Retirement 3 45,193 54,565 60,647 62,479 64,366 66,310 68,312 70,375 Social Security/FICA 3 17,153 18,988 22,752 23,439 24,147 24,876 25,627 26,401 Workers Comp. Insurance 3 14,460 13,948 16,341 16,835 17,343 17,867 18,406 18,962 State Unemployment Insurance 3 1,050 2,240 1,650 1,700 1,751 1,804 1,859 1,915 Boot/Uniform/Equipment Allowance 3 770 422 1,775 1,829 1,884 1,941 1,999 2,060 Accounting & Auditing 2 - - - - - - - - Administrative Expense - ABM Loan 2 - - - - - - - - Legal Fees 2 - 239 10,000 10,345 10,702 11,071 11,453 11,848 Contractual Services 2 222,097 188,812 96,500 99,829 103,273 106,836 110,522 114,335 Veolia- Contractual services 2 - - 121,068 125,245 129,566 134,036 138,660 143,444 Equipment Rental 2 (463) 6,692 8,000 8,276 8,562 8,857 9,162 9,479 Equipment (Non-Capital,<$5,000) 2 298 2,815 2,000 2,069 2,140 2,214 2,291 2,370 Fuel & Mileage 7 17,457 21,174 20,000 21,416 22,932 24,555 26,293 28,154 Flood & Fire Insurance 2 206 284 389 402 416 430 445 460 Liability Insurance 2 11,576 13,727 17,141 17,732 18,344 18,977 19,632 20,309 Finance Charge - Collection fee 2 - - 100 103 107 111 115 118 M & R Machinery & Equipment 2 29,596 36,126 39,000 40,346 41,737 43,177 44,667 46,208 M&R Real Property 2 9,452 28,372 25,000 25,863 26,755 27,678 28,633 29,621 M&R Vehicles 2 1,429 1,546 3,000 3,104 3,211 3,321 3,436 3,554 Membership Dues 2 311 - 700 724 749 775 802 829 Misc. Services & Supplies 2 1,076 320 2,000 2,069 2,140 2,214 2,291 2,370 Office Supplies & Materials 2 - - 2,000 2,069 2,140 2,214 2,291 2,370 Permits & Licenses 2 3,814 2,090 4,200 4,345 4,495 4,650 4,810 4,976 Postage 2 - - - - - - - - Telephone 2 3,879 4,491 5,000 5,173 5,351 5,536 5,727 5,924 Utilities - PG&E 6 23,472 29,993 25,000 27,088 29,350 31,800 34,456 37,333 Emergency Repairs 2 94,210 49,394 50,000 51,725 53,510 55,356 57,265 59,241 Capital Outlay - Vehicles 8 - - 32,500 33,638 34,815 36,033 37,294 38,600 Loan - Lease Payment - Principal Exh. 3 - - - - - - - - Loan - Lease Payment - Interest Exh. 3 - - - - - - - - TOTAL: WWTP COLLECTION SYSTEM AND LIFT STATIONS 776,886$ 805,521$ 954,744$ 987,537$ 1,021,553$ 1,056,843$ 1,093,462$ 1,131,469$

9 Financial Plan – Sewer Projected Operating & Maintenance Expenses Beach FUND Basis FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 BEACH WWTP PLANT Salaries & Wages 3 142,245$ 178,294$ 158,791$ 163,587$ 168,527$ 173,617$ 178,860$ 184,261$ Overtime 3 4,820 7,527 4,416 4,549 4,687 4,828 4,974 5,124 Clothing & Work Boots 3 - - - - - - - - Dental Insurance 3 2,477 2,569 2,717 2,799 2,883 2,970 3,060 3,152 Health Insurance 3 20,989 24,581 29,826 30,727 31,655 32,611 33,596 34,610 Life Insurance 3 334 357 426 439 452 466 480 494 Employee Assistance Program 3 46 53 48 49 50 52 54 55 Vision Insurance 3 327 338 392 404 416 428 441 455 PERS Retirement 3 21,805 27,032 24,915 25,667 26,442 27,241 28,064 28,911 Social Security/FICA 3 10,602 12,281 12,756 13,141 13,538 13,947 14,368 14,802 Workers Comp. Insurance 3 8,555 8,345 9,246 9,526 9,813 10,110 10,415 10,729 State Unemployment Insurance 3 - - - - - - - - Accounting & Auditing 2 7,633 8,141 8,370 8,658 8,957 9,266 9,586 9,917 Legal Fees 2 466 297 2,000 2,069 2,140 2,214 2,291 2,370 Debt Issuance Costs Exh 3 - - - - - - - - Chemicals & Gases 4 74,418 135,239 50,000 52,724 55,595 58,624 61,817 65,184 Contractual Services 2 1,115,446 1,018,356 153,477 158,772 164,250 169,916 175,778 181,843 VEOLIA- Contractual Services 2 1,854 1,589 864,282 894,100 924,947 956,857 989,869 1,024,019 Equipment Rental 2 4,587 4,509 4,700 4,862 5,030 5,203 5,383 5,569 Equipment (Non-Capital,<$5,000) 2 36,897 121,445 24,000 24,828 25,685 26,571 27,487 28,436 Fuel and Mileage 7 434 196 800 857 917 982 1,052 1,126 Flood & Fire Insurance 2 3,081 4,240 5,805 6,006 6,213 6,427 6,649 6,878 Liability Insurance 2 38,830 45,835 57,269 59,245 61,289 63,403 65,591 67,854 Interest Expense - Interfund Loan 2 4,703 4,703 - - - - - - Legal Notices/Publications 2 - - - - - - - - M & R Machinery & Equipment 2 15,286 19,747 9,000 9,311 9,632 9,964 10,308 10,663 M & R Real Property 2 16,460 16,006 30,000 31,035 32,106 33,213 34,359 35,545 Office Supplies & Materials 2 5,550 6,000 6,000 6,207 6,421 6,643 6,872 7,109 Computer Hardware 2 - - - - - - - - Computer Software 2 34,060 35,492 26,406 27,317 28,259 29,234 30,243 31,286 Permits & Licenses 2 11,822 10,928 14,000 14,483 14,983 15,500 16,034 16,587 Postage 2 1,152 1,373 1,600 1,655 1,712 1,771 1,832 1,896 Telephone 2 7,935 7,137 15,000 15,518 16,053 16,607 17,180 17,772 Utilities - PG&E 6 102,766 112,967 67,000 72,595 78,657 85,225 92,342 100,053 Utilities - City Water Services 6 - 15,023 - - - - - - Bond Interest Expense Exh 3 - - - - - - - - Bond Principal Exh 3 - - - - - - - - Bond Principal Retirement 2 - - 75,000 77,588 80,264 83,033 85,898 88,862 Emergency Repairs 2 21,552 - 50,000 51,725 53,510 55,356 57,265 59,241 Transfer Out 3 9 - - 143,025 143,025 - - - - TOTAL: TREATMENT PLANT 1,717,130$ 1,830,598$ 1,851,267$ 1,913,465$ 1,835,083$ 1,902,280$ 1,972,146$ 2,044,804$ Footnote 3. These transfers are interfund loan payments to the following funds: (1) Water - $20,680; (2) Parks and Recreation - $5,170; and (3) Municipal Improvements - $117,175.

10 Financial Plan – Sewer Actual Actual Budget FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 GRAND TOTAL: SEWER EXPENSES - NORTHWEST 2,063,074$ 2,531,803$ 2,487,122$ 2,584,009$ 2,685,467$ 2,791,784$ 2,903,266$ 3,020,246$ DESCRIPTION Basis 5-Year Projected Rate Period Actual Actual Budget FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 GRAND TOTAL: SEWER EXPENSES - BEACH 2,494,016$ 2,636,119$ 2,806,010$ 2,901,002$ 2,856,635$ 2,959,123$ 3,065,608$ 3,176,273$ DESCRIPTION Basis 5-Year Projected Rate Period

11 Financial Plan – Sewer

12 Financial Plan – Sewer Projected Capital Improvement Program Costs (in future year dollars) Footnotes: 2 Project costs beyond Year 5 in the City's capital improvement plan have been allocated equally across a 7-year period (FY 2029/30 through FY 2035/36). 3. Future project costs beyond FY 2033/34 are calculated based on the City's 10-year average. Projected CIP Expenses Northwest FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 Capital Outlay ABM Citywide Energy Efficiency Program -$ 70,590$ -$ -$ -$ -$ -$ -$ CIP - Beach & NW Wastewater Plant Consolidation - 50,000 - - - - - - CIP - CCTV Trilogy Wastewater Lines - 30,000 - - - - - - Project 1 - Wastewater Consolidation Project 1 Wastewater Consolidation Project - - - 415,640 755,810 1,346,335 1,865,303 1,453,677 Project 2 - Northwest WWTP Projects 1 Interim Improvements - - - - 1,259,684 1,308,937 1,360,117 1,756,527 2 Solar Greenhouse/Dryers - - - - - - - - 3 Belt Press - - - - - - - - 4 UV Upgrades and Lamp Replacement - - - - - - - - 5 Membrane Replacement - - - - - - - - 6 Recycled Water Tank, Pump Station, Distribution - - - 1,039,100 3,239,186 3,612,667 - - 7 WWTP Expansion - - - - - - - - 8 As-Needed Annual Upgrades - - - 519,550 539,864 560,973 582,907 605,699 9 As-Needed Annual Maintenance - - - 51,955 53,986 56,097 58,291 60,570 Project 3 - Beach WWTP Projects 1 Interim Improvements - - - - - - - -