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<br /> <br />".' "'~"""""'" <br />illll,W ~ &"'HiiUb'T'.':/"" <br />If~: .J']~llll~~f <br />Advisory Services to Municipal Management <br /> <br />Mr. Brian Ponty <br />October 5, 2007 <br />Page 2 of 2 <br /> <br />3. Once the City chooses a rate structure, we will request updated customer count data from <br />Allied and the 2008 revenue requirement (based on the review of Allied's 2008 rate <br />application). Based on the updated information, we will revise the rate scenarios and <br />work with City staff to develop the final scenarios to present to Council. <br /> <br />4. HF&H will support City staff by attending the Council meeting to answer any questions <br />regarding the proposed rate methodology. <br /> <br />Projected Fees <br /> <br />Because of the nature of this engagement, we propose to bill you on a time and materials basis <br />at our standard billing rates. Our estimated fee (including out-of-pocket expenses) for <br />performing this project as described above is $7,000 to $12,000, depending on the complexity <br />of the procedures and the number of meetings. If additional fees are necessary, we will inform <br />you before proceeding. <br /> <br />We anticipate that the City will authorize the work and approve our invoices (showing actual <br />hours by task and consultant), and Allied will pay the approved invoices, with the expense <br />being attributed to the City in the next rate review. <br /> <br />* <br /> <br />* <br /> <br />* <br /> <br />If the terms of this engagement are acceptable to the City, please indicate by signing below <br />and returning one copy to our office. Should you have any questions, please feel free to call <br />me at 925/977-6952. <br /> <br />Very truly yours, <br /> <br />HF:f::::;P~ <br /> <br />;:trt D. Hilton, CMC <br />President <br /> <br />cc: Rick Simonson, HF&H <br />Kim Erwin, HF&H <br /> <br />Approved: <br /> <br />this <br /> <br />day of <br /> <br />,2007 <br /> <br />for the City of Redwood City <br />