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City of Pleasanton <br />Sewer Rate Study Report <br /> <br />Water Resources Economics <br />59 <br />The fixed asset value is based on data received from City staff regarding sewer system assets, <br />original cost, useful life, date in service, and net book value. WRE converted all asset values from <br />net book value into replacement cost less depreciation (RCLD) using the Engineering News- <br />Record’s Construction Cost Index (CCI) to adjust for annual cost inflation. WRE recommends <br />using the RCLD asset valuation methodology because it accounts for both inflation and <br />depreciation and is generally considered the most equitable approach. The detailed asset list is <br />included in the Appendix (Table 5-5). <br /> <br />Table 4-1: Buy-In System Value <br />Line Buy-In Method System <br />Value <br />1 Sewer Assets Value (RCLD) $65,468,002 <br />2 Plus Cash Balances (O&M, Replacement, and CIP) $9,821,893 <br />3 Total $75,289,895 <br /> <br />EXISTING UNITS <br />Error! Reference source not found. shows the equivalent dwelling unit (EDU) calculation where <br />one EDU is based on average Single Family flow per DU. Accounts and wastewater flow for each <br />customer class are from Table 3-5. Single Family flow per EDU is calculated based on dividing <br />Single Family annual wastewater flow by number of accounts (Line 2), which is applied to all <br />customer classes. EDUs are calculated for each customer class by dividing annual wastewater <br />flow by Single Family flow per EDU. <br />Page 211 of 923