CITY COUNCIL WORKSHOP AGENDA PACKET 4-21-26

City of Pleasanton Sewer Rate Technical Memo Water Resources Economics Page 3 • Residential: alignment of Condo and Multi-Family rates into a single rate category • Commercial/Industrial: implementation of a single uniform collection rate across all Commercial classifications • Institutional: continued differentiation of School rates based on Submetered and Not Submetered customers These changes simplify the sewer rate structure while maintaining appropriate distinctions, which were justified by differences in usage/wastewater flow characteristics. RUBY HILL DISCOUNT CONSIDERATIONS Currently, customers in the Ruby Hill area receive a 10% discount on both City of Pleasanton collection charges and City of Livermore sewer charges. The discount represents a policy decision rather than a cost-of-service- based adjustment. If the City elects to continue providing this discount, it will result in an ongoing impact to the City’s General Fund of approximately $31,000 annually beginning in FY 2027. As part of the rate adoption process, the City may consider whether to continue, modify, or eliminate this discount. PROPOSED SEWER RATES The proposed sewer rates are designed to generate the revenue required under the financial plan while reflecting the updated cost-of-service allocation and proposed modifications to the sewer rate structure. The rates have been developed to ensure that the sewer enterprise remains financially sustainable over the study period. CUSTOMER IMPACTS Pr op osed Sew er Rates Cur r ent FY 2027 F Y 2028 FY 2029 FY 2030 Bi -Monthly Fi x ed Resi d ential Char ges Single Family $31.70 $57.03 $62.74 $69.02 $75.93 Single Family w/ 2nd Residence $48.28 $96.53 $106.19 $116.81 $128.50 Condo $21.77 $39.51 $43.47 $47.82 $52.61 Multi-Family $16.58 $39.51 $43.47 $47.82 $52.61 Pr op osed Sew er Rates Cur r ent FY 2027 F Y 2028 FY 2029 FY 2030 Comm er cial/Ind ustr i al Var iab le Char ges ($/ccf ) All Commercial/Industrial Customers $4.08 $4.49 $4.94 $5.44 Minimum Charge $16.58 $39.51 $43.47 $47.82 $52.61 Comm er cial (Cur rent Classi f ications) Auto Steam Cleaning $1.79 $4.08 $4.49 $4.94 $5.44 Bakery $1.78 $4.08 $4.49 $4.94 $5.44 Laundry $1.79 $4.08 $4.49 $4.94 $5.44 Grocery with Disposal $1.71 $4.08 $4.49 $4.94 $5.44 Mortuary $2.09 $4.08 $4.49 $4.94 $5.44 Restaurant, Fast Food $1.67 $4.08 $4.49 $4.94 $5.44 Restaurant, Full Service $1.67 $4.08 $4.49 $4.94 $5.44 All Other $1.51 $4.08 $4.49 $4.94 $5.44 Institutional Var iab le Char ges ($/ccf ) Schools, Submetered $1.46 $2.03 $2.24 $2.47 $2.72 Schools, Not Submetered $0.95 $0.88 $0.97 $1.07 $1.18 Page 13 of 27