CITY COUNCIL WORKSHOP AGENDA PACKET 4-21-26

Page 6 of 9 For Single-Family Homes, the combined bimonthly sewer bill would increase from $93.28 to $122.61, a difference of $29.33 per bimonthly billing cycle. In the Ruby Hill neighborhood, a single-family home would see its bimonthly bill increase from $166.68 to $213.01, a difference of $46.33. Ruby Hill customers pay a higher sewer cost for sewer services compared to other Pleasanton homes because their wastewater is collected by both Pleasanton and Livermore’s collection systems and then treated by Livermore’s wastewater treatment facility. All other customers pay the Pleasanton collection and DSRSD treatment cost. Therefore, Ruby Hill homes pay for the sewer fee for two collection systems and the treatment cost, while regular homes only pay for one collection system and the treatment cost. For Commercial/Industrial customers, classifications would be updated to align with the DSRSD rate structure, with charges based on actual usage at a single unit rate and a minimum charge equal to the Multi-Family rate. This is a significant change from the current rate model and is based on industry best practices and consideration that wastewater collected from commercial and industrial customers costs the same to move, regardless of source. Some customers who have historically had lower unit rates would see a larger increase than others based on their typical usage patterns. Under the proposed FY 2027 rates, a typical office or retail customer, categorized as “All-Other,” would see its combined sewer bill increase from $469.06 to $740.72, a difference of $271.66. Additionally, a typical full-service restaurant, using 154 units of water, would see its bimonthly sewer bill increase from $1,239 to $1,703, a difference of $463. These two commercial/industrial customer classifications are the first and second most common, respectively. Schools would continue to be differentiated based on whether they are submetered (separate irrigation and domestic water meters) versus non-submetered (combined water meters). Under the proposed FY 2027 increase, submetered schools with an average usage of 172 units per bimonthly billing cycle would see their bimonthly sewer bill increase from $849.68 to $1,002.76, a difference of $153.08 per billing cycle. Non-submetered schools with average usage of 1,394 units per billing cycle would see their bimonthly sewer bill increase from $6,175.42 to $6,523.92, a difference of $348.50 per billing cycle. This update aligns with industry standards and is supported by the financial analysis and cost- of-service study. Total sewer bill costs are shown in Table 3 using current FY 2026 rates and proposed FY 2027 rates to provide a comprehensive view of total sewer service costs. Page 7 of 27