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<br />EXHIBIT A, SCOPE OF WORK <br /> <br />Part A. <br /> <br />Redwood City's D-5 Chief Operator is: <br /> <br />CHU CHANG, P.E. ("Chang") <br /> <br />Part B. <br /> <br />1. Palo Alto representatives shall contact <br />Chang, acting on behalf of Redwood City, <br />on a quarterly basis to update him as to the <br />functioning of the domestic water <br />transmission program. In addition, from <br />time to time, Palo Alto representatives may <br />consult with Chang and seek advice as to <br />concerns arising from Palo Alto's domestic <br />water transmission program. The Parties <br />understand, acknowledge and agree that (A) <br />Chang's sole responsibility will be to offer <br />suggestions as to possible courses of <br />conduct; (B) any and all of Chang's <br />suggestions, whether in oral or written form, <br />shall be forwarded to Palo Alto's Director of <br />Utilities (or anyone functioning in that <br />capacity); and (C) Palo Alto's Director of <br />Utilities (or anyone functioning in that <br />capacity) shall independently render any <br />directions as to courses of conduct for Palo <br />Alto. <br /> <br />Part C. <br /> <br />Javad Ghafarri <br />John Reinert <br />Such other Palo Alto employee(s) identified by Palo <br />Alto as having the authority to communicate with <br />Chang. <br /> <br />061103 syn 0072788 <br /> <br />EXHIBIT B, FEES AND CHARGES <br /> <br />Palo Alto will pay Redwood City a monthly retainer <br />of $500, plus an hourly rate for services rendered. <br />The following hourly rate is applicable to services to <br />be rendered by Redwood City's Chang, its D-5 chief <br />operator: <br /> <br />Period of Availability <br /> <br />Rate per hour <br /> <br />8:00 AM - 5:00 PM <br /> <br />$150.00 <br /> <br />5:00 PM - 8:00 AM <br />lncl. weekends/holidays <br /> <br />$225.00 <br /> <br />Billing statements will be sent to Palo Alto at a <br />frequency (once or twice per calendar year) to be <br />determined by Redwood City. Palo Alto will pay <br />each bill within thirty (30) days of receipt thereof. <br /> <br />4 <br />