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<br /> Page 1 <br /> <br /> <br />Memo <br /> <br />To: Siew-Chin Yeong, Director of Public Works – City of Pleasanton <br />From: Nancy Phan, Project Manager – Water Resources Economics, LLC <br />Date: May 15, 2025 <br />Re: Water Drought Rates and Connection Fees Technical Memo <br /> <br />INTRODUCTION <br /> <br />Water Resources Economics, LLC (WRE) was engaged by the City of Pleasanton (City) in 2024 to conduct water <br />rate and connection fee studies to develop an updated four-year schedule of water and recycled water rates, <br />water drought rates, and water connection fees. The City has finalized the multi-year proposed water and recycled <br />water rate schedules and is currently seeking City Council input on water drought rates and connection fees to <br />complete the process. <br /> <br />WATER AND RECYCLED WATER RATE RECAP <br /> <br />The table below shows the proposed four-year schedule of combined water rates (i.e. City component and Zone 7 <br />pass-through component) relative to current combined water rates based on the overall increased financial <br />needs. The new rate structure includes uniform consumption based variable charges for all customer classes and <br />Zone 7 fixed costs being 100 percent recovered as fixed charges to customers. <br /> <br /> <br />The tables below show the combined water rates above split between their City and Zone 7 components. Zone 7 <br />water supply costs will be billed to customers as pass-through charges projected to increase by 5% each year <br />from CY 2026 to CY 2029. Actual pass-through charges are subject to change year-to-year based on actual Zone 7 <br />costs and therefore can be increased without additional Proposition 218 noticing. City charges greater than that <br />shown would require additional Proposition 218 noticing. <br />Page 198 of 226