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<br /> 0 lE@fS Dvm; ~ Northern California <br />8 HILTON FARNKOPF & HOBSON, LLC <br />Advisory Services to Central California <br />~ Municipal Management '" Southern California <br /> SEP 2 4 2003 Pacific Northwest <br />2175 N. California Boulevard, Suite 990 ;J Robert D. Hilton, CMC <br /> - <br />Walnut Creek, California 94596 John W. Farnkopf, PE <br />Telephone: 925/977-6950 L. Scott Hobson, CPA <br /> <br />Lalth B, Ezzet, CMC <br /> <br />Fax: 925/977-6955 <br />www.hfhoconsuitants.com <br /> <br />Septe~ber19,2003 <br /> <br />fJõ' (; frIO . ~fC <br /> <br />Mr. Brian Ponty <br />Director of Finance and Financial Planning <br />Via City Attorney <br />City of Redwood City <br />1017 Middlefield Road <br />Redwood City, CA 94064 <br /> <br />Copy by facsimile; original by ~ail <br /> <br />Subject: Proposal to Perform a Co~parative Survey of City Fees to Water and Waste <br />Water Operations <br /> <br />Dear Mr. Ponty: <br /> <br />In accordance with your request, Hilton Famkopf & Hobson, LLC (HF&H) is pleased to <br />provide you this proposal. It describes our approach, estimated fees and schedule to <br />survey other cities to determine the a~ounts and types of fees charged to their water <br />and waste water operations by the city. <br /> <br />Background <br /> <br />Currently, in addition to indirect cost charges, the City charges a 9% in-lieu franchise fee <br />to its utility funds. The intent of thi'5 fee is to co~pensate the City for costs incurred by <br />the general fund for the impact of these utility operations on the infrastructure (roads, <br />right of way, etc.) and services (police, fire, etc.) of the City. <br /> <br />Objective <br /> <br />While the City is confident that the current in-lieu fee is not unreasonable, it wishes to <br />survey other similar cities with regard to fees charged to their utilities. <br /> <br />Approach <br /> <br />HF&H will perform the following tasks: <br /> <br />Task 1: HF&H staff will develop a draft survey instrument and transmittal letter, to be <br />signed by Mr. Ponty, and identify candidate cities (up to 20) to be surveyed. HF&H will <br />discuss the drafts by phone, ~ake changes as appropriate and send an electronic version <br /> <br />recycled 0 paper <br />