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Phase 2 <br />Tasks <br />Develop a 10 -year financial plan model for the potable water, recycled water, and wastewater <br />services that determines the revenue requirements based on projected revenues, operating and <br />maintenance expenditures including capital improvements, debt service coverage, and <br />adequate reserve funding. The analysis should incorporate the City's debt service and reserve <br />funding policies, water and sewer master plans, as well as any other policy considerations that <br />the City determines are priorities <br />Meet with City's project team to present findings, discuss alternatives, and gain input <br />Deliverables <br />• Summary of 10 -year capital improvement plans and /or key alternatives <br />• Evaluation of financing alternatives for capital improvements <br />• Recommendations for a minimum fund reserve target <br />• 10 -year financial projection with supporting tables <br />• Evaluation of alternative scenarios as needed <br />• Evaluation of rate increase options <br />Phase 3 <br />Tasks <br />Prepare a cost of service analysis that fairly and equitably allocates costs to customer classes <br />while adequately funding revenue requirements including operations and maintenance, capital <br />improvements, and debt service. The analysis must ensure that rates and facilities & capacities <br />fees and charges are defensible and comply with the requirements of Proposition 218, <br />Proposition 26 and other regulations. <br />• Meet with City to discuss findings and alternatives, gain input and develop recommendations <br />Deliverables <br />• Evaluation of current utility rates and potential rate structure modifications <br />• Regional utility rate surveys <br />• Analysis of historical consumption and utility billing data <br />• Cost of service analysis that supports equitable and legally -defensible rates <br />• Draft of rate alternatives for City evaluation and input <br />Phase 4 <br />Tasks <br />• Provide a comparative analysis that illustrates how Redwood City's rates compare in cost to <br />neighboring utilities. At a minimum, this list will include all Bay Area Water Supply & <br />Conservation Agency (BAWSCA) member agencies for water utility service and the <br />corresponding wastewater agencies for the respective areas (unless otherwise indicated by City <br />staff). <br />• Meet with City to discuss findings and alternatives, gain input and develop recommendations <br />Deliverables <br />REV: 11-08-18 VR <br />Page 10 of 13 <br />ATTY/AGR.2018.260/Bartle Wells/Water & Sewer Utility Rate Study <br />