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<br />Exhibit "A" <br /> <br />SCOPE OF SERVICES <br /> <br />Consultant will provide various professional consulting services related to the analysis and <br />evaluation of Redwood City's water rate structure at the direction of the Water Resources <br />Management Superintendent or his/designee. Discreet work assignments / tasks may include the <br />following: <br /> <br />Task 1. Remove Rate Block RatchetinQ <br /> <br />Background. The City currently uses what is termed a ratcheted block rate structure. For residential <br />customers, all water use above 10 Ccf is charged at a single rate, depending on how much water is <br />used. The commercial rates follow a similar pattern. <br />Analysis. The City wants to compare its existing ratcheted rate structure to an alternative, revenue- <br />neutral incremental block rate structure. The purpose of the change is not to shift revenue collection <br />between customer classes or between small and large water users. It is simply a change in rate <br />structure to improve customer understanding and to bring the City in line with customary rate <br />structure design. <br /> <br />Task 2. Rate Block Simplification <br />Background. The City currently uses five rate blocks for its residential customers and three blocks <br />for its commercial customers. Having many rate blocks tend to confuse customers. <br />Analysis. The consultant will analyze the water bill frequency distributions of the residential and <br />commercial rate classes to determine a natural, smaller set of rate blocks or appropriate size. <br />rate structure. Consultant will evaluate water use bill frequencies to accomplish this task. <br />Consultant will use existing rate block sizes. <br /> <br />Task 3. New Landscape Rate Class for Dedicate Irriqation Meters <br />Background. The City currently has separate classes and rates for its residential and commercial <br />landscape irrigation customers although both customer classes are similar in water use. Because of <br />the nature of their water use both types of customers pay for water at the highest rate tier and have <br />no incentives to improve their irrigation efficiency. <br />Analysis. The consultant will analyze the water bill frequency distributions of the residential and <br />commercial irrigation rate classes to develop a new incremental three block rate structure. The <br />customers will pay for water according to the level of irrigation efficiency compared to their <br />individualized water budget. <br /> <br />Task 4. Waterate Software Update <br /> <br />Background. The City currently uses the Waterate software model contained in an Excel workbook <br />for developing water rates. The base water use data has not been updated in several years and will <br />need to be revised according to the water rate structure changes approved by the City. <br />Analysis. Consultant will work with City Information Technology staff to obtain needed water use <br />information to update Waterate, in addition to working with City staff in the implementation of water <br />rate structure changes. <br /> <br />All work performed shall be billed monthly per the terms and conditions of Exhibit B of this <br />Agreement. <br /> <br />Agreement over $1 OK <br />City Attorney Approved Version 111803 <br /> <br />10 <br />