Agmt08 HF & H Consultants, LLC - Laserfiche WebLink

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_~~l~;roMunkiPaIManagem'n, 2175 N. California Boulevard, Suite 990 Walnut Creek, California 94596 Telephone: 925/977-6950 Fax: 925/977-6955 www.hfh-consultants.com Robert D. Hilton, CMC John W. Farnkopf, PE Laith B. Ezzet, CMC Richard J. Simonson September 9,2008 Sent via e-mail Mr. Brian Ponty Finance Director City of Redwood City P.O. Box 391 Redwood City, CA 94063-0391 Subject: Residential Rate Structure Analysis Dear Mr. Ponty: The City of Redwood City (City) has requested that HF&H Consultants, LLC (HF&H) prepare an analysis to complete the two-year phase-in of a uniform per-gallon rate structure for residential customers and a progressive per-gallon rate structure for commercial customers to encourage recycling. This letter communicates our proposed work scope for that project, as well as our projected fees. Work Scope 1. HF&H will contact Allied to obtain current rates and current customer count by type and level of service (i.e., residential customers with one 32-gallon can, two 32-gallon cans, etc. and commercial customers with one 2-yard bin serviced 2 times per week, one 4-yard bin serviced 3 times per week, etc.). We will review the data provided for reasonableness by comparing the current customer count to the customer account data received last year and identify and get explanation for any significant variances. HF&H will use the current information to obtain an average cost per-gallon for residential container service. We will then develop revised rates based on a per-gallon rate structure for residential customers and compare the revised rates to the current per-container rate structure. In addition, if requested by the City, we will develop rate scenarios based on a residential progressive rate structure. HF&H will provide a summary analysis of the changes and the impact on customers. The rate schedules will be based on the then-current subscription levels and revenue requirement.