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City of Pleasanton <br />Sewer Rate Study Report <br /> <br />Water Resources Economics <br />10 <br />revenues in the first year of adjustments (FY 2027) are designed to increase by the <br />proposed revenue adjustment percentage (100% in FY 2027), the proposed percentage <br />increase to each rate/charge varies due to the updated cost-of-service allocations. <br />• Rate schedule development: Proposed rates for the full study period are calculated by <br />increasing the FY 2027 rates by the proposed annual revenue adjustment percentages <br />from the proposed financial plan. <br /> <br />1.11 PROPOSED SEWER RATES <br />WRE worked with the City Council and City staff to determine the most appropriate sewer rate <br />structure that meets the City’s needs. <br /> <br />PROPOSED RATE STRUCTURE CHANGES <br />Currently, the City charges different bi-monthly fixed residential charges to Condo and Multi- <br />Family customers. WRE recommends aligning the Condo and Multi-Family bi-monthly fixed <br />charges to simplify the City's rate structure and better align with peer agency practices, including <br />DSRSD. Because Condo and Multi-Family customers have similar household densities and <br />estimated wastewater generation characteristics, combining these customer classes into a single <br />rate is appropriate. <br /> <br />The City also currently charges different Commercial and Industrial variable charges based on <br />commercial class. WRE recommends consolidating these charges into one variable charge <br />applicable to all Commercial and Industrial customers in line with cost-of-service principles and <br />DSRSD’s customer classifications. Collection and transport costs associated with delivering <br />wastewater to regional treatment facilities are primarily driven by wastewater flow and do not vary <br />based on commercial class. <br /> <br />The proposed four-year sewer rate schedule in this section is based on the updated cost-of- <br />service analysis and the proposed revenue adjustments in the four-year period. The rate schedule <br />shows the proposed sewer rates to be implemented starting in January 2027 and every July <br />thereafter. <br /> <br />Table 1-5 shows the current 5 and proposed bi-monthly fixed residential charges, commercial and <br />industrial variable charges, and institutional variable charges. <br /> <br /> <br /> <br /> <br />5 Current rates are based on an assumed 3.0% CPI increase from rates effective in January 2026. <br />Page 162 of 923