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Page 2 of 5 effective January 1, 2026 BACKGROUND Pleasanton does not own or operate a wastewater treatment plant. Instead: • DSRSD treats the majority of Pleasanton's wastewater, approximately 6 million gallons per day (mgd) average dry weather flow (ADWF); and • the City of Livermore treats wastewater from the Ruby Hill development, with flows of approximately 0.25 mgd ADWF. After secondary treatment at DSRSD or Livermore’s Water Reclamation Plant, treated wastewater is conveyed via the Livermore Amador Valley Wastewater Management Agency (LAVWMA) to the East Bay Dischargers Authority (EBDA) outfall for final disposal, unless it is reused for recycled water. A Pleasanton sewer bill is comprised of the regional wastewater treatment component, either provided by DSRSD or Livermore, the transport component provided by LAVWMA (included in the treatment charges from DSRSD or Livermore) and finally the local collection component provided by Pleasanton. The portions of the sewer bill associated with the cost of the treatment and transport components are managed by DSRSD and Livermore and said charges are passed through to the customer by the City of Pleasanton. The portion of the sewer bill associated with the local sewer collection system is managed by Pleasanton.     The City’s Sewer Collection System   The City’s local sewer collection system serves a population of approximately 76,000 in a 25- square mile service area. The collection system consists of approximately 253 miles of gravity sewers, approximately 5.4 miles of force main, 8 siphons, 11 active pump stations, and 21,000 service connections.          Local City rates are developed to equitably allocate costs to users for asset operations, pay for debt service incurred for the construction of sewer facilities, and to perform the necessary maintenance and repairs (or replacement) of the sewer collection system. The costs also include the labor and pumping charges associated with the collection and pumping of raw sewage to the DSRSD and/or City of Livermore treatment plants. The local portion of the current City rates represents approximately 33 percent of the overall bi-monthly sewer bill.      In 2010, the City approved a combined water and sewer rate increase of 7.27 percent, followed by five years of annual CPI-based adjustments. In 2015, a similar CPI-based increase policy was approved for another five years. However, the City’s rapid population growth (approximately 5,000 new residents between 2015 and 2020) and system improvement needs were not factored into these adjustments. The planned 2019 rate study was delayed by the COVID-19 pandemic. Further delays occurred when the City paused the PFAS treatment and well rehabilitation projects to explore alternative water supplies. As a result, there were no water or sewer rate adjustments in 2021, 2022, or 2023. In 2023, the City Council approved two years of CPI-based sewer rate increases, effective from January 1, 2024, to June 30, 2024, for the first year and July 1, 2024, for the second year. Page 172 of 226