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<br /> <br />July 2, 2026 <br /> <br />Siew-Chin Yeong <br />Director of Public Works <br />City of Pleasanton <br />P.O. Box 520 <br />Pleasanton, CA 94566 <br /> <br />Subject: City of Pleasanton Sewer Rate Study <br /> <br />Dear Ms. Yeong, <br /> <br />Water Resources Economics, LLC (WRE) is pleased to submit this 2026 Sewer Rate Study to the <br />City of Pleasanton (City). The goal of the study was to develop a four-year rate schedule of sewer <br />rates that will sufficiently fund the City’s sewer system expenses, allow the City to meet its <br />financial goals within the study period, and comply with cost-of-service principles. <br /> <br />This study utilized industry-standard rate-setting methodology in accordance with guidelines <br />developed by the American Water Works Association (AWWA) and incorporates guidance <br />provided by the City’s Council. Our project team has a proven track record of developing fair and <br />equitable rates for numerous public utility agencies in California over the past 25 years. We are <br />confident in our ability to develop sewer rates that satisfy the requirements of Proposition 218. <br /> <br />The City’s sewer connection fees, which are one-time fees charged to new customers connecting <br />to the sewer system, were also updated in this study based on the most up-to-date asset <br />valuations and capacity data. The proposed connection fees have been prepared using the buy-in <br />methodology and in accordance with the requirements of Proposition 26. <br /> <br />It has been a pleasure assisting the City, and we appreciate the support provided by yourself, Mr. <br />Todd Yamello, the City Council, and other City staff during this study. <br /> <br />Sincerely, <br /> <br /> <br /> <br /> <br />Sanjay Gaur Nancy Phan <br />Founder / President Principal Consultant <br />Page 149 of 923