Pleasanton City Council
June 3, 2025

Item #8

CITY COUNCIL AGENDA REPORT

June 3, 2025
Information Technology

TITLE: APPROVE PURCHASE OF 26 GETAC V110 G7 RUGGEDIZED LAPTOPS AND 37 TG3 KEYBOARDS FROM CODE 3 TECHNOLOGY FOR $140,306.30 TO

REPLACE MOBILE DATA COMPUTERS IN THE POLICE FLEET

SUMMARY
The Pleasanton Police Department’s patrol vehicles rely on ruggedized Mobile Data Computers (MDCs) for critical field operations such as access to law enforcement databases, computer-aided dispatch (CAD), and electronic report writing. The Department’s current MDC units, installed in 2017, have exceeded their expected service life and are due for replacement.

Staff is recommending approval of payment to Code 3 Technology of $140,306.30 to purchase 26 Getac V110 G7 rugged convertible MDCs and 37 TG3 backlit keyboards. Replacing the aging MDCs will maintain reliable public safety technology while minimizing additional costs by reusing existing mounts and cabling.

RECOMMENDATION
Approve purchase of 26 Getac V110 G7 ruggedized laptops and 37 TG3 keyboards from Code 3 Technology for $140,306.30 to replace mobile data computers in the police fleet.

1. Approve the purchase of 26 Getac V110 G7 ruggedized laptops and 37 TG3 backlit keyboards from Code 3 Technology for $140,306.30.

2. Authorize the City Manager to execute the necessary purchase order(s) and related documents.

BACKGROUND
The Pleasanton Police Department has utilized in-vehicle mobile data computers (MDCs) for over 25 years as standard equipment in patrol cars and other field units. These computers enable officers to perform essential duties in the field, including secure access to state and federal law enforcement databases, real-time dispatch information, report writing, and other mission-critical tasks that enhance responsiveness and efficiency. In 2011, the City completed a citywide MDC upgrade, and by July 2017, the Police Department’s MDCs (which had been in service since 2011) were reaching end-of-life and no longer supported by modern software requirements. In response, the City conducted a formal procurement in 2017 to replace the MDC hardware and vehicle mounting systems, introducing the Getac rugged computer platform into the police fleet. The 2017 MDC replacement project outfitted all front-line patrol vehicles with new Getac V110 series convertible laptops and updated docking mounts, significantly improving computing performance and in-vehicle ergonomics.

The MDC units acquired in 2017 have been continuously used for almost eight years, well beyond the typical service life for such technology. Initially, staff anticipated a service life of about four years for these computers; however, the Getac systems have proven to be

exceptionally reliable, remaining operational with minimal technical issues far past their expected replacement cycle. This longevity, about four years beyond expectations, is a testament to the durability of the Getac equipment and the City’s prudent maintenance practices. Nevertheless, given the rapid pace of technology advancement and the age of the current units, replacing them at this time is necessary to ensure compatibility with current software, maintain vendor support (warranties and parts availability), and avoid potential failures that could disrupt police field operations.

DISCUSSION
The Police Department proposes to purchase 26 Getac V110 G7 fully rugged convertible laptops (MDCs) and 37 TG3 backlit keyboards from Code 3 Technology to upgrade the in- vehicle computer systems across the patrol fleet. The Getac V110 G7 is the latest generation of the same model series currently in use, and the new units are compatible with the existing docking stations, mounting hardware, and accessory peripherals installed in the police vehicles. By continuing with Getac’s platform, the City avoids the significant additional expense of replacing or re-engineering each vehicle's metal mounting brackets, docks, and cabling, which would have been required if a different brand or form factor were selected. This compatibility yields cost savings and minimizes vehicle downtime, as the new MDCs can be quickly swapped into the existing mounts with little to no modification.

In addition to hardware compatibility, the City’s experience with Getac MDCs over the past eight years has been very positive. The Getac units have demonstrated outstanding reliability, with very few technical problems or failures reported during deployment. The previous MDC fleet remained reliable and problem-free throughout its service, allowing the City to utilize them well past the typical end-of-life. This proven track record gives the City confidence that the Getac V110 G7 will continue to provide robust performance in the demanding public safety environment. The new models also come with upgraded specifications – including faster 12th- generation Intel processors, enhanced memory and storage, and modern Windows 11 operating systems – ensuring they meet current application needs and improve overall efficiency. Notably, the Getac V110 G7 includes advanced connectivity features such as built- in 5G wireless capability and GPS, which will support high-bandwidth data applications and reliable communications for officers.

Code 3 Technology has been identified as the vendor for this purchase for several reasons.

First, Code 3 Technology is the assigned registered authorized reseller for Getac for the City of Pleasanton, which means the manufacturer endorses them to supply and support these rugged systems to public sector clients. This relationship ensures that the City will receive genuine equipment with full warranty support and that technical assistance will be readily available. Second, as part of the City’s procurement due diligence, staff obtained multiple quotes and explored cooperative purchasing contracts for the MDC replacements. Code 3 Technology submitted the lowest price quote, meeting all the City’s specifications and requirements and making them the most cost-effective choice. The vendor’s quote of $140,306.30 includes all hardware (26 computers and 37 keyboards) and applicable taxes and fees and reflects discounted pricing available through government contracts.

A proof of concept (POC) using a dozen comparable Getac V110 G7 units was first deployed for operational testing alongside the Police Department’s new CAD/RMS/Mobile platform. The POC phase validated performance, connectivity, and ergonomics in real-world patrol conditions, and the devices subsequently moved into limited production use without incident.

The upgraded MDCs have already enhanced officer experience through faster response times, improved wireless bandwidth, and reduced risk of equipment downtime during critical incidents. Staff recommends approval of this purchase as it will modernize the Police Department’s field technology cost-effectively, leverage existing infrastructure, and maintain the high level of reliability that public safety operations demand.

The purchase will be funded through the City’s Technology Replacement Fund, an internal service fund expressly set aside for the periodic replacement of critical technology assets.

EQUITY AND SUSTAINABILITY
Maintaining up-to-date technology infrastructure for public safety ensures that hihg-level public safety services are available to the entire community. The recommended action aligns with the City’s procurement policies, and extending the life of existing mounts and accessories avoids unnecessary waste and strain on City resources.

OUTREACH
No outreach was conducted, as this procurement is a routine internal City business matter.

Replacing police MDC equipment does not require public outreach or noticing. The affected stakeholders are internal (Police and Information Technology staff), and they have been involved in planning the equipment upgrade.

STRATEGIC PLAN ALIGNMENT
Approval of this action advances the ONE Pleasanton strategic goal of “Safeguarding Our City." By investing in reliable, up-to-date technology for the Police Department, the City fosters a safe and secure community through improved emergency response and law enforcement effectiveness. Ensuring that first responders have functional and modern tools directly supports public safety operations. The project also aligns with the strategic goal of “Optimizing Our Organization” by enhancing the efficiency and reliability of the City’s public safety services through strategic technology upgrades.

FISCAL IMPACT
Funds for this procurement are budgeted and available in the General Fund (Org 00112200) and Technology Replacement Fund (Internal Service Fund 51612210). The total cost of $140,306.30 will be paid by these funds. Sufficient funding exists in the FY 2024-25 budget to cover purchasing the 26 MDC units and 37 keyboards. Ongoing support and maintenance for the new MDCs (including warranty service for up to 5 years, as provided in the purchase) will also be managed through existing Department budgets. The expenditure is fully funded through previously allocated replacement funds and carries no net new fiscal impact on the City’s operating budget.

Prepared by: Submitted by: Approved by:

Allen J. Hammond Allen J. Hammond

Allen Hammond, Director of
Information Technology
Allen Hammond, Director of Information
Technology

Gerry Beaudin, City
Manager

Attachments:

1. Code 3 Technology Quote

2. MRC Quote

3. Duratech USA Quote

PROPOSAL
Date: 11/16/2024
QUOTE: 24-586B
Thanks for your business!
Quote expires 1/30/2025*
Allan Hammond
Pleasanton Police Department
4833 Bernal AVE
Pleasanton, CA 94566
925-931-5090
Customer ID PPDCA001
Salesperson Project Payment Terms Contract#
Jim Boubelik Getac V110 MDC / Keyboard Net 30
Part# Description Qty Unit Price Ext Price
VSF16YJABGBA
Getac-V110G7 - i7-1265U, vPro, Webcam, Windows 11 Pro, 16GB RAM, 512GB PCIe SSD, SunRead Full HD LCD+Touchscreen+Stylus, Membrane Backlit Keyboard, WIFI, Bluetooth, 5G Sub-6+Dedicated GPS+Passthrough, Hard Handle, USB Type-A x2+USB Type-C+SCrdr 3- year bumper to bumper warranty
26 $3956 $102,856
GE-SVTBNFX5Y Bumper to Bumper + Extended Warranty- Tablet (Year 4 & 5) 26 $521 $13,546 590GBL001282 TG3 83 Key, Backlit, Touchpad, USB, Coiled Cord, No Logo, 5 Year Warranty 37 $325 $12,025 Subtotal $128,427.00
Sales Tax $11,775.30
Recycle $104.00
Shipping $0.00
Total $140,306.30
*We offer financing & Leasing, device buyback, and rugged device insurance coverage, just ask! *CCs add 2.89%. Purchasing contracts add 1-2% (GSA, OMNIA, NCPA, Sourcewell, PEPPM, SLP, DIR) Code 3 Technology/9855 E Southern Ave #50882 Mesa AZ 85209/480-888-6401/[email protected] ATTACHMENT 1

Quote
Date
11/18/2024
Quote #
6364
Name / Address
Pleasanton Police Dept
Accounts Payable
4833 Bernal Ave
Pleasanton, CA 94566
Ship To
Pleasanton Police Dept
Allen Hammond
4833 Bernal Ave
Pleasanton, CA 94566
P.O. Box 6506
Chandler, AZ 85246
Total
Quoted by Linda Flaherty
(480) 361-2472
[email protected]
Part Number Description MSRP QtyLn# Unit $ Extended
GE-A-VSY7445581 VSF16YJABGBA
V110G6: Intel® Core™ i7-1265U vPro Enterprise, FHD Webcam, Microsoft Win11 Pro 64 bit, 16GB RAM, 512GB PCIe SSD (user swappable), 11.6" Sunlight Readable (Full HD LCD + Touchscreen + Hard Tip stylus), US KBD + US Power cord, Membrane Backlit KBD, WiFi + BT + 5G Sub-6 + Dedicated GPS + Passthrough, Hard Handle, USB Type-A x 2 + USB Type-C x 1 + Smart card reader, Dual batteries, TouchPad w/Click Button, 3Yr Bumper-to-Bumper Warranty
$5,536 261 4,600.00 119,600.00T
GE-K-TGS5266507 590GBL000196
TG3 83 Key, Backlit, Touchpad, USB, Coiled Cord, 5Yr No Fault Warranty $269.99 372 250.00 9,250.00T
GE-W-VSY5859847 GE-SVBFNFX5Y
Bumper to Bumper + Extended Warranty- Laptop (Year 4 & 5) $599 263 565.00 14,690.00T
CA eWaste Recycle Fee CA eWaste Recycle Fee 264 4.00 104.00 Shipping Shipping - Waived to CA5 0.00 0.00T
CC Fee Please add 3% if using a Credit or Debit Card or 5% for PayPal TBD6 0.00 0.00 Allen Hammond
(925) 931-5084
[email protected]
Notes:
* Lead time 6-8 weeks
* Quote valid for 30 days
* 3% Surcharge added for Credit/Debit Card or 5% for PayPal * Net 30 Day terms available for qualified customers
* ALL PRODUCT NON-RETURNABLE/NON-REFUNDABLE
Sales Tax 14,712.85 14,712.85
$158,356.85
ATTACHMENT 2

Quotation
Date: 11/18/24
DuraTech USA, Inc.

PO Box 4363
Westminster, CA, 92684
562-424-5502 Office
866-704-9132 Fax
www.DuraTechUSA.com
Contact: Michael Trevino
[email protected]
Quote#
Ship To: Bill To:

Allen J. Hammond
Director of Information Technology
[email protected]
Product Description QTY Price Ext. Total
V110G7 - Intel Core i7-1265U Processor, vPro Enterprise, Webcam, Microsoft Windows 11 Pro x64 with 16GB RAM, 512GB PCIe SSD (user swappable), Sunlight Readable (Full HD LCD + Touchscreen + Hard Tip stylus), US KBD + US Power cord, Membrane Backlit KBD, WIFI + BT + 5G Sub-6 + Dedicated GPS + Passthrough, Hard Handle, USB Type-A x 2 + USB Type-C x 1 + Smart card reader, Dual batteries, Touchpad W/ click button, 3 Year B2B WarrantyVSF16YJABGBA 26 4699 122174 Bumper to Bumper + Extended Warranty- Notebook, Tablet(Year 4 & 5) - Getac, Tablet&Notebook (A/ B/ F/ K/ V/UX/X600 Series), Bumper-to-Bumper+Extended Warranty, 5, YearsGE-SVTBNFX5Y 26 589 15314 TG3 KBD;KBA-BLTX-U-US,TG3 83 Key KB Backlit (R/G/B) Touchpad Chicklet Keys Coiled/Straight USB Cord (5 year NO-FAULT warranty),590GBL001282 37 359 13283 Subtotal 150771
WIRE TRANSFER FEE (Banking Information Available upon request) Ground Shipping 0
CA Sales Tax (10.25%) 13884.34
CA EWF ($4 per LCD) 104
Total 164759.34
TOTAL WITH VALID CA RESALE CERT:

Prices are good for 30 days and may be subject to change w/o notice, Lead Time varies by manufacturer Terms: Govt. IssuedNet 30 PO, Prepaid Company Check or Wire Transfer, All Pricing is in U.S.D.

Due to customization, ALL SALES ARE FINAL
All California sales require Sales Tax and $5 EWF per LCD ATTACHMENT 3

Item #9

CITY COUNCIL AGENDA REPORT

June 3, 2025
Library and Recreation

TITLE: APPROVE THE FIRST AMENDMENT TO THE PLEASANTON UNIFIED SCHOOL

DISTRICT AND CITY JOINT USE AGREEMENT FOR THE MIDDLE SCHOOL

GYMNASIUMS

SUMMARY
The City and Pleasanton Unified School District (PUSD) entered into an agreement on July 1, 2024, to define costs associated with the shared use of the middle school gymnasiums. The two agencies would like to update the terms and extend this agreement for an additional year.

RECOMMENDATION
Approve the first amendment to the Pleasanton Unified School District and City joint use agreement for the middle school gymnasiums.

BACKGROUND
The City and PUSD co-funded the construction of all three middle school gyms in Pleasanton, and for many years paid equally for maintenance and capital projects. However, cost sharing for capital projects was never clearly defined in the previous agreements. In 2024, both agencies determined and agreed that the middle school gyms are not co-owned, but are owned by PUSD.

On July 1, 2024, PUSD and the City entered into an Agreement for the Middle School Gyms to better define how costs are shared between the two agencies for their use. Staff met and agreed to an hourly rate for City use of the gyms as well as an equal share of maintenance costs, with a total annual not-to-exceed amount of $75,000.

DISCUSSION
The current agreement has been mutually beneficial for the students, community members and both agencies. The proposed amendment extends the term for an additional fiscal year, through June 30, 2026, and provides for incremental increases to the hourly rate for use of the gyms.

EQUITY AND SUSTAINABILITY
Updating City PUSD agreements to ensure they are meeting community and organizational needs helps to further equitable access to recreational opportunities for all community members.

OUTREACH
Outreach for the middle school gymnasium agreement was conducted through the City/PUSD Liaison Committee meetings held in December 2022, May 2023, and March 2024.

STRATEGIC PLAN ALIGNMENT
This action advances the ONE Pleasanton Citywide Strategic Plan goal A. Funding Our Future, Strategy 1 - Develop a long-term strategy for funding operations and maintenance needs to ensure reliability of community-owned facilities and infrastructure and continuity of City services.

FISCAL IMPACT
$75,000 is included in the proposed budget for Library and Recreation for FY 2025/26.

Prepared by: Submitted by: Approved by:

Heidi Murphy, Director of
Library and Recreation
Heidi Murphy, Director of Library and
Recreation

Gerry Beaudin, City
Manager

Attachments:

1. First Amendment to Agreement

2. Joint Use Agreement

FIRST AMENDMENT TO AGREEMENT
This First Amendment to Agreement ("First Amendment") is entered into this 1st day of July 2025 by the City of Pleasanton ("City") and Pleasanton Unified School District ("PUSD") Wherea
s, on July 1, 2024, the City and PUSD entered into an agreement for joint use of the Middle School Gymnasiums ("Agreement"); and
Wherea
s, the terms and scope of work need to be amended; and
Wherea
s, the parties desire to amend to the Agreement;
Now, th
erefore, in exchange for valuable consideration, the receipt of which is hereby acknowledged, the parties agree as follows:

1. Recital F of the Agreement, is amended to read:

Th
e City and District wish to clarify use of the Middle School Gymnasiums for Fiscal Year
2025/26 by amending the Middle School Gymnasium Agreements.

2. Section 2a of the Agreement, “Term” is amended to read:

The term of this Agreement
is from July 1, 2025 to June 30, 2026.

Section 3 of the Agreement, “Costs” is amended to read:
ii. $40.00 per hour (Monday-Friday); $60.00 per hour (Saturday); and $80.00 per hour (Sunday) for custodial obligations related to maintaining the Middle School Gymnasiums and surrounding areas.
iii. one-half of the costs of regular
maintenance, repair, and upkeep of the Middle
School Gymnasiums. Gymnasiums will be utilized by Amador and Foothill High School for a period of time in the 2025/26 school year. The City’s maintenance costs will be prorated for only the period the gym is used by the City.

3. All other terms and conditions of the Agreement shall remain in full force and effect.

In witn
ess whereof, authorized representatives of the parties have executed this First Amendment to the Agreement as of the date and year first above written.

CITY

OF PLEASANTON CONTRACTOR
By:

Gerry Beaudin, City Manager Signature
Print name
ATTEST: Title:
[If Consultant is a corporation, signatures must comply Jocelyn Kwong, City Clerk with California Corporations Code §313] Attachment 1

APPROVED AS TO FORM:

By:

Signature
Daniel G. Sodergren, City Attorney
Print name
Title:

Item #10

CITY COUNCIL AGENDA REPORT

June 3, 2025
Library and Recreation

TITLE: APPROVE THE THIRD AMENDMENT TO THE AGREEMENT WITH BLACK TIE

TRANSPORTATION FOR TRANSPORTATION SERVICES FOR THE LIBRARY

AND RECREATION DEPARTMENT TO EXTEND THE CONTRACT FOR ONE

YEAR WITH THE OPTION TO EXTEND FOR ONE MORE ONE-YEAR TERM FOR A FIVE-YEAR TOTAL NOT TO EXCEED $127,397

SUMMARY
The City and Black Tie Transportation (BTT) entered into an agreement on April 1, 2022, to provide transportation for recreational programs, including Senior trips, youth summer camp trips, and trips for adults with developmental disabilities (RADD). The original agreement allowed up to four one-year extensions. Two extensions have been executed. The Third Amendment will make the total cost of the contract exceed $100,000. Staff is requesting approval of the third amendment to the agreement with the option to extend for one more one- year term.

RECOMMENDATION
Approve the third amendment to the agreement with Black Tie Transportation for transportation services for the Library and Recreation Department to extend the contract for one year with the option to extend for one more one-year term for a five-year total not to exceed $127,397.

BACKGROUND
In February of 2022, the City posted a Request for Qualifications (RFQ) for transportation services for the Library and Recreation Department programs. Three vendors submitted bids for the RFQ. The local, Pleasanton-based company Black Tie Transportation (BTT) was selected as a vendor based on its competitive pricing. The City and BTT entered into an agreement on April 1, 2022, to provide transportation for recreational programs, including senior trips, summer camp trips, and trips for adults with developmental disabilities (RADD).

The original agreement for service included 22 trips from April 1, 2022 to March 31, 2023. The First Amendment for service included 41 rides from April 1, 2023 to March 31, 2024. The Second Amendment included 30 trips from April 1, 2024 through March 31, 2025.

DISCUSSION
The Third Amendment for service includes 18 trips for an additional amount of $21,000 from April 1, 2025, to March 31, 2026. In reviewing the original agreement and amendments, staff acknowledged that the total cost of the contract is $106,397 and requires City Council authorization.

Approving this item will also authorize staff to execute a Fourth Amendment for an amount not to exceed $21,000 for April 1, 2026, to March 31, 2027, for a total contract price not to exceed

$127,397.

EQUITY AND SUSTAINABILITY
Updating City agreements to ensure they are meeting community and organizational needs helps to further equitable access to transportation services for all community members.

OUTREACH
No outreach was conducted as this is a routine matter of City business.

STRATEGIC PLAN ALIGNMENT
This action advances ONE Pleasanton Citywide Strategic Plan goal E. Building a Community Where Everyone Belongs.

FISCAL IMPACT
The $21,000 is included in the proposed budget for Library and Recreation for FY 2025/26.

The cost of the agreement is partially offset by program revenue. This agreement can be administratively extended by the City Manager for up to one more term of 12 months through March 31, 2027, for the five-year total not-to-exceed amount of $127,397.

Prepared by: Submitted by: Approved by:

Heidi Murphy, Director of
Library and Recreation
Heidi Murphy, Director of Library and
Recreation

Gerry Beaudin, City
Manager

Attachments:

1. Third Amendment to Agreement with Black Tie Transportation

Attachment 1

Item #11

CITY COUNCIL AGENDA REPORT
May 6, 2025
Police
TITLE: ADOPT ORDINANCE NO. 2294 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PLEASANTON AMENDING ORDINANCE NO. 2238 TO AMEND THE PLEASANTON POLICE DEPARTMENT’S MILITARY EQUIPMENT USE POLICY TO ADD EQUIPMENT TO THE POLICY’S MILITARY EQUIPMENT INVENTORY The foregoing Ordinance was introduced at a regular meeting of the City Council of the City of Pleasanton on May 20, 2025, by the following vote:

Ayes: Councilmembers Eicher, Gaidos, Nibert, Testa, Mayor Balch Noes: None

Absent: None
Abstain: None

ORDINANCE NO. 2294

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
PLEASANTON AMENDING ORDINANCE NO. 2238 TO AMEND THE
PLEASANTON POLICE DEPARTMENT’S MILITARY EQUIPMENT USE
POLICY TO ADD EQUIPMENT TO THE POLICY’S MILITARY

EQUIPMENT INVENTORY
WHEREAS, on July 19, 2022, the City Council adopted Ordinance No. 2238 approving the Pleasanton Police Department’s Military Equipment Use Policy; and WHEREAS, the Military Equipment Use Policy was amended on October 18, 2022 by Ordinance No. 2240 to add a Command Vehicle to the Policy’s military equipment inventory; and
WHEREAS, the Military Equipment Use Policy was amended on April 18, 2023 by Ordinance No. 2246 to add additional equipment to the Policy’s military equipment inventory; and
WHEREAS, the Military Equipment Use Policy was amended on April 16, 2024 by Ordinance No. 2279 to add additional equipment to the Policy’s military equipment inventory; and
WHEREAS, the City Council wishes to amend the Military Equipment Use Policy to add additional equipment to the Policy’s military equipment inventory.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PLEASANTON DOES HEREBY ORDAIN AS FOLLOWS:

Section 1. Amendment. Ordinance No. 2238 is amended to add the equipment described in Exhibit “A” to the Military Equipment Use Policy’s military equipment inventory.

Section 2. Severability. If any part of this ordinance is declared invalid by a court, such invalidity shall not affect any of the remaining parts.

Section 3. Publication. This ordinance, or a summary prepared by the City Attorney, shall be published once in a newspaper of general circulation of the City of Pleasanton within fifteen days after its adoption.

Section 4. Effective Date. This ordinance shall take effect 30 days after its adoption.

Ordinance No. ________

The foregoing Ordinance was introduced at a regular meeting of the City Council of the City of Pleasanton on May 20, 2025, by the following vote:

Ayes:Councilmembers Eicher, Gaidos, Nibert, Testa, Mayor Balch Noes: None

Absent: None
Abstain: None
______________________
Jack Balch, Mayor
ATTEST:
____________________________
Jocelyn Kwong, City Clerk
APPROVED AS TO FORM:
____________________________
Daniel G. Sodergren, City Attorney

Ordinance No. ________

EXHIBIT A
Additional Military Equipment Requested:

Item #12

CITY COUNCIL AGENDA REPORT

June 3, 2025
Public Works - Utilities Division

TITLE: APPROVE AN AS-NEEDED MAINTENANCE AND TRADE SERVICES AGREEMENT WITH SHAPE, INC. FOR SEWER AND STORM MAINTENANCE AND PUMP REPAIRS FOR AN ANNUAL NOT-TO-EXCEED AMOUNT OF $75,000 PER YEAR OVER A THREE-YEAR TERM FOR A TOTAL OF $225,000, WITH

THE OPTION TO EXTEND THE AGREEMENT BY TWO ADDITIONAL ONE-YEAR TERMS

SUMMARY
The City requires specialized, as-needed pump repair and maintenance services for various City sewer pump stations. The pump stations are equipped with Flygt brand submersible pumps. Shape Inc. (Shape) is the local representative for Flygt Pumps and the sole-source provider of these specialized services. Shape has been providing pump services to the City for more than 20 years and has consistently provided excellent service. Routine inspections showed that eight sewer pumps need to be rebuilt. Staff recommends the award of a sole- sourced as-needed maintenance and trade services agreement with Shape, Inc. as Shape is the only local Flygt Pump factory representative.

RECOMMENDATION
Approve and authorize the City Manager to execute a three-year as-needed maintenance and trade services agreement with Shape, Inc. for sewer and storm maintenance and pump repairs for a total of $225,000, with a not-to-exceed limit of $75,000 per fiscal year, where parties have the option to extend the agreement for two additional, one-year terms not to exceed five years.

BACKGROUND
The City maintains eleven sewer lift stations and six storm drain stations, eight of which are equipped with Flygt brand submersible pumps. Shape, Inc. (Shape) is the local representative for Flygt pumps, providing a range of services to pump owners, including parts, technical support, repair (both on-site and in-shop), and on-site removal and replacement. They also ensure that any repairs or replacement of current pumps meet Flygt's factory standards and are fully covered under the Flygt warranty. The City has used Shape for over twenty years to perform the above-mentioned services.

The City uses Flygt pumps because of their proven reliability and durability in sewer wet wells.

Sewage contains chemicals, solids, abrasives, rags, and many other items that get put down the drain. Submersible sewer pumps operating in these conditions require frequent inspection, repair, and general maintenance. Staff schedules four to six lift stations, which include multiple pumps at each station, for inspection and maintenance every year. The inspections usually result in some repair work, such as impeller or seal replacements. In some cases, pumps may need to be replaced due to worn parts or significant breakage.

DISCUSSION
Shape has a local presence with an office in Pleasanton and another in Stockton. With Shape, parts can be sourced locally, troubleshooting and technical support are available on-site, pump downtimes are minimized, and a rapid response can be made to pump failures. Shape has worked with City staff for several years, and this relationship allows Shape to stock critical parts and be readily available in the event of an emergency.

During routine preventive maintenance inspections, it was discovered that eight sewer pumps will need to be rebuilt due to normal wear, which includes worn impellers, bad wear rings, and oil in the stator housing, typically from the operation of the pumps. Staff recommends s three- year term for the new agreement, through June 30, 2028, with a total not-to-exceed amount of $225,000 over the three years, with the option to extend the term for two additional one-year terms, not to exceed five years.

EQUITY AND SUSTAINABILITY
As a full-service city, the City provides a wide range of services and programs to meet the needs of all members of the community. Additional resources, such as consultant support, are necessary to sustain vital City services and programs and support community infrastructure.

OUTREACH
No outreach was conducted, as this item is a routine matter of City business.

STRATEGIC PLAN ALIGNMENT
Approval of this action advances the Citywide ONE Pleasanton strategic plan goal of Investing in Our Environment, Strategy 8 – Update the Sewer System Master Plan to reflect current and future operations and identify system improvements and necessary maintenance.

FISCAL IMPACT
The contracted services are funded in the Repair and Replacement Fund associated with the Sewer Fund (43442201-440105), which is budgeted at $380,000 for FY 2025/26 and $500,000 for FY 2026/27.

Prepared by: Submitted by: Approved by:

Siew-Chin Yeong, Director
of Public Works
Siew-Chin Yeong, Director of Public
Works

Gerry Beaudin, City
Manager

Attachments:

1. As-Needed Maintenance and Trade Services Agreement with Shape, Inc

AS-NEEDED MAINTENANCE AND TRADE SERVICES AGREEMENT

FOR SEWER & STORM PUMP MAINTENANCE & EMERGENCY REPAIRS

THIS AGREEMENT is made and entered into this first day of July 2025 between Shape Incorporated ("Contractor"), a California Corporation, whose address is 5515-A Johnson Drive, Pleasanton CA 94588 and the CITY OF PLEASANTON, a municipal corporation ("City").

RECITALS

A. Contractor is qualified and experienced in providing Sewer and Storm Pump Maintenance, Emergency Repairs Services, and Replacement Parts and Equipment as set forth in Exhibit A of this Agreement.

B. City finds it necessary and advisable to obtain work or services from Contractor on both a scheduled basis, as well as on an as-needed basis for potential unscheduled work also described therein.

NOW THEREFORE, in consideration of the mutual covenants and conditions in this Agreement, City and Contractor agree as follows:

1. Term. The term of this Agreement commences on the date written above and will expire on June 30, 2028, unless the parties agree to extend the Agreement for an additional two (2) one-year terms, not to exceed five (5) years total for this Agreement.

2. Services to be performed . Contractor shall perform, or cause to be performed, the work or services described in Exhibit A . This Agreement does not obligate the City to utilize Contractor exclusively for such work or services.

a. Task Authorization – When services are estimated to be over $10,000, Contractor will submit a written estimate detailing the cost to perform the requested work or services, the City will then issue a Task Authorization letter as a guide for reimbursement once the scheduled work is completed and to the satisfaction of the City. If authorized work exceeds the initial estimate or City requests additional services, Contractor is to notify the City of the additional cost and the City will provide an amended Task Authorization. No work shall be performed unless approved by the City’s designated project manager.

3. Compensation. Total compensation pursuant to this Agreement shall not exceed $225,000 for the three-year term, with an annual not-to exceed amount of $75,000. Rates shall be as set forth in Exhibit A. For the second or subsequent years of the Agreement, the cost of each one -year term may increase only by the change in the consumer price index for the San Francisco- Oakland-San Jose Metropolitan Area (all items index; all urban consumers) for the twelve-month period ending in April each year as published by the Bureau of Labor Statistics, U.S. Department of Labor.

a. Payment shall be made within thirty (30) days of receipt of Contractor’s invoice and approval by City.

b. If the prevailing wage for crafts or classifications subject to this Agreement change during the term of this Agreement, the City will accept corresponding increases in Contractor’s hourly rates when sufficient documentation is received from the Contractor and verified with the Department of Industrial Relations.

4. Indemnification. Contractor shall hold harmless, defend, and indemnify the City, its officers, agents and employees (“Indemnities”), against any and all claims, costs, demands, causes of action, suits, losses, expenses, attorney’s fees, or liability, arising from or in any manner related to Contractor’s (includes Contractor’s employees, agents, or subcontractors) negligent act or omission, whether alleged or actual, regarding the work or services performed or caused to be performed pursuant to this Agreement and any amendments thereto. Contractor shall not, however, be obligated to indemnify Indemnities from claims arising from the sole negligence or willful misconduct of Indemnities . This indemnification includes any claim that the materials or equipment provided under this Agreement, or any tool, article or process used, constitutes an infringement of any patent issued by the United States. This indemnification provision shall survive termination or cancellation of the Agreement.

5. Insurance. During the term of this Agreement, Contractor shall maintain at its own cost and expense the following insurance coverage with insurers with an A.M. Best’s rating of no less than A: VII. Contractor shall have the obligation to furnish City, as additional insured, the minimum coverages identified below, or such greater or broader coverage for City, if available in the Contractor’s policies

a. General Liability and Bodily Injury Insurance. C ommercial general liability insurance with limits of at least $ 2,000,000 combined limit for bodily injury and property damage that provides that the City, its officers, employees and agents are named additional insured’s under the policy as evidenced by an additional insured endorsement satisfactory to the City Attorney.

The policy shall further state in writing either on the Certificate of Insurance or attached rider that this insurance will operate as primary insurance for work performed by Contractor and its subcontractors, and that no other insurance effected by City or other named insured will be called on to cover a loss.

b. Automobile Liability Insurance. Automobile liability insurance with limits not less than $2,000,000 per person/per occurrence.

c. Workers' Compensation Insurance. Workers' Compensation Insurance for all of Contractor's employees shall be in strict compliance with State laws, including a waiver of subrogation and Employer’s Liability Insurance with limits of at least $1,000,000.

For work or services deemed public works, by signing this Agreement, Contractor is certifying, pursuant to Section 1861 of the California Labor Code, that: "I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the work of this Contract."

d. Certificate of Insurance. Contractor shall file a certificate of insurance with the City prior to the City’s execution of this Agreement, and prior to engaging in any operation or activity set forth in this Agreement. The Certificate of Insurance shall provide in writing that the insurance afforded by this Certificate shall not be suspended, voided, canceled, reduced in coverage or in limits without providing notice to the City in accordance with California Insurance Code section 677.2 which requires the notice of cancellation to: 1) include the effective date of the cancellation; 2) include the reasons for the cancellation; and 3) be given at least 30 days prior to the effective date of the cancellation, except that in the case of cancellation for nonpayment of premiums or for fraud, the notice shall be given no less than 10 days prior to the effective date of the cancellation . Notice shall be sent by certified mail, return receipt requested. In addition, the insured shall provide thirty (30) days prior written notice to the City of any cancellation, suspension, reduction of coverage or in limits, or voiding of the insurance coverage required by this agreement. The City reserves the right to require complete certified copies of policies.

e. Subcontractors. Contractor shall include all subcontractors as insured under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverage’s for subcontractors shall be subject to all of the requirements stated in this Agreement, including but not limited to naming additional insureds.

f. Waiver of Subrogation. The insurer agrees to waive all rights of subrogation against the City, its officers, employees and agents.

g. Defense Costs. Coverage shall be provided on a “pay on behalf of” basis, with defense costs payable in addition to policy limits. There shall be no cross-liability exclusions.

6. Independent Contractor. The Contractor is an independent contractor retained by the City. All personnel employed by the Contractor, including subcontractors, and personnel of subcontractors, are not and shall not be employees of the City.

7. Contractor’s Warranty. Contractor shall bear the risk of loss or damage to any goods associated with the services until delivered to and accepted by City. Contractor further warrants that all work done and goods provided under this Agreement shall: a) meet all conditions of the Agreement; b) shall be free from all defects in design, material and workmanship; and 3) shall be fit for the purposes intended. If any defects occur within the 12 months following acceptance, Contractor shall be solely responsible for the correction of those defects.

8. Labor Code/Prevailing Wages. The work performed under this Agreement is a “public work” and prevailing wage laws shall apply. No less than the general prevailing rate of per diem wages, and not less than the general prevailing rate of per diem wages for holidays and overtime work, for each craft, classification or type of worker needed to execute the work under this Agreement shall be paid to all workers, laborers and mechanics employed in the execution of the work by the Contractor or any subcontractor doing or contracting to do any part of the work. The appropriate determination of the Director of the California Department of Industrial Relations shall be available for inspection. Contractor shall post, at each job site, a copy of the prevailing rate of per diem wages.

To the extent applicable, Contractor shall comply with all requirements of the California Labor Code, including but not limited to, Labor Code sections: 1773.2 (regarding posting wage determinations at each job site); section 1776 (regarding the certificat ion, maintenance, and availability for inspection of payroll records); section 1777.5 (regarding employment of apprentices); section 1810 (regarding a legal day’s work as 8 hours of labor); and section 1775 (regarding penalties for violations). The Contra ctor shall forfeit fifty dollars ($50.00) for each calendar day or portion thereof for each worker paid less than the stipulated prevailing rates for any public work done under the Agreement by it or by any subcontractor under Contractor.

9. Notices. All notices, demands, requests or approvals to be given under this Agreement shall be given in writing and conclusively shall be deemed served when delivered personally or on the second business day after the deposit thereof in the United States Mail, postage prepaid, registered or certified, addressed as hereinafter provided.

To Contractor: Shape Incorporated To City: City Manager 3825 Hopyard Rd. Ste. 195 City of Pleasanton
Pleasanton, CA 94588 P.O. Box 520
Pleasanton, CA 94566

10. Conflict of Interest. In accepting this Agreement, Contractor covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of this Agreement. Contra ctor further covenants that, in the performance of this Agreement, it will not employ any person having such an interest. Contractor certifies that no City officer, employee, or authorized representative has any financial interest in the business of Contra ctor and that no person associated with Contractor has any interest, direct or indirect, which could conflict with the faithful performance of this Agreement. Contractor agrees to advise City if any conflicts arise.

11. Miscellaneous Provisions.

a. City may terminate this Agreement at any time by mailing a notice to Contractor. Contractor shall be paid for that portion of work or services already completed by Contractor as approved by City.
b. Contractor acknowledges that time is of the essence regarding the performance of this Agreement.
c. Contractor shall not assign or transfer this Agreement. d. If either City or Contractor waives a breach of this Agreement, such waiver shall not constitute a waiver of other or succeeding breaches of this Agreement. e. This Agreement constitutes the entire understanding of the parties. f. This Agreement may only be modified by a writing signed by the authorized representative of both parties.
g. Contractor covenants that it has obtained and will keep in effect during the term of the Agreement all certificates, licenses, including a City Business License, permits or the like

required by any federal, state or local regulatory agency in order to perform the work under this Agreement.
h. Contractor shall comply with all federal, state and local laws, regulations and rules, including but not limited to applicable safety and environmental laws. Contractor shall bear full and exclusive responsibility for any release of hazardous or non-hazardous substances and disposal of hazardous wastes.
i. The Contractor will permit the City to audit, examine and make copies of all contracts, invoices, payrolls and other documents or data relating to this Agreement. Such records shall be maintained for three years from the date of final payment under this Agreement. j. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature complying with U.S. federal E -Sign Act of 2000 (15 U.S. Code §7001 et seq.), California Uniform Electronic Transactions Act (Cal. Civil Code §1633.1 et seq.), or other applicable law) or other transmission method, and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes. k. This Agreement shall be governed by the laws of the State of California, with venue for any action under this Agreement in Alameda County, California.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above written.

CITY OF PLEASANTON CONTRACTOR

_____________________________ By: __________________________ Gerry Beaudin, City Manager Signature

__________________________
Print name

ATTEST: Title: __________________________

____________________________ [If Contractor is a corporation, signatures must Jocelyn Kwong, City Clerk comply with California Corporations Code §313]

APPROVED AS TO FORM: _____________________________
Signature

__________________________ __________________________
Daniel Sodergren, City Attorney Print name

Title: __________________________

EXHIBIT A
Sewer Pump Repairs

UTILITIES – SEWER AND STORM
SUBMERSIBLE PUMP REPAIR AND REPLACEMENT – FY 2025/26

SCOPE OF SERVICES
The City is requesting an experienced licensed contractor to perform routine and emergency sewer and storm submersible pump repair work. This work would be performed at any of the City’s sewer or stormwater infrastructure located throughout the City . Shape Inc. is the sole authorized regional provider of repair, replacement, and maintenance services for Flygt-branded submersible pumps.

All Contractors’ employees shall comply with all Federal, State, and local laws and regulations governing the installation and testing of electrical pumping equipment and components. All Contractors’ employees shall comply with all OSHA and City policies regarding the proper use of Lockout/Tagout procedures. Also, contractor will pay particular attention to confined space procedures when working on sewer and storm drain pumps.

The following outline provides a scope of work for the City’s expectations regarding scheduled and non-scheduled “as needed” submersible pump repair work for utilities:

1. Contractor shall provide the personnel, equipment, and materials to perform annual preventive maintenance and emergency repair services.

2. Contractor to provide replacement parts and equipment if a submersible pump is no longer operable. Additionally, the contractor will provide rebuild services for Flygt submersible pumps, provided the pump is rebuildable.

3. The City’s designated project manager will identify the pump stations and the pumps that will be serviced annually.

4. Prior to any work to begin, the Contractor shall provide a written estimate of the work or service to be performed on each identified pump.

5. All identified pumps to be serviced will have priority scheduling.

6. Maintenance of the sewer and storm pumps shall meet these minimum requirements:

• Coolant/Oil and O-Ring: Check and replace coolant, oil, and O-ring if necessary, according to manufacturer specifications
• Volute: Inspect for wear, especially on the volute face • Impeller: Verify impeller type and inspect for cracks, fractures, or other damage.

Check impeller clearances, if applicable
• Wear/Insert Ring: Inspect for wear and note any cracks, fractures, or other damage
• Power Cable: Check for nicks, cuts, bends, or swelling. When removing or installing, ensure the cable is properly secured and hung.

EXHIBIT A
Sewer Pump Repairs

• Guide Rails: Inspect overall condition
• Lifting Chain/Cable: Inspect condition. When removing or installing, verify proper securement and hanging.
• Pump Lifting Handle: Inspect condition
• Motor Electrical Inspection: Perform Megger readings and voltage/amp checks under both load and no-load conditions
• Stator Housing: Confirm there is no oil or water present inside the housing • MiniCAS/MAS Unit/Other: Test to confirm proper operation, if applicable • Pump Station Operation: Check and verify flow performance of the pump, where applicable

7. The Contractor’s Service technician(s) shall communicate with the City’s designated Project Manager any conditions that warrant immediate attention that will affect the present and potential conditions of the pumps.

8. For repairing and replacing submersible sewer pumps at eight (8) of our sewer lift stations in our collections system

9. For repairing and replacing submersible storm water pumps at one ( 1) of our storm water lift stations

10. Provide troubleshooting and repairs to pumps and motors of varying voltage and phases.

11. Perform work on sewer pumps varying in size from 2 H.P. to 80 H.P.

12. Troubleshoot and repair any controllers and accessories associated with collections system.

13. Contractor to provide a pump inspection report with all correctly verified information including detailed findings while performing maintenance.

RATE SHEET
The cost quoted below shall include all taxes and all other charges, including travel expenses, and is the cost the City will pay for the term of any contract that is a result of this bid.

Bidder hereby certifies to City that all representations, certifications, and statements made by Bidder, as set forth in this Bid Form and attachments are true and correct and are made under penalty of perjury pursuant to the laws of California.

Contractor's Labor Rates (Hourly)
Position Description Regular Time Overtime Emergency Callout Foreperson $ $ $
Journey Level $ $ $

EXHIBIT A
Sewer Pump Repairs

Apprentice Level $ $ $
Other: $ $ $

Contractor’s Equipment
Equipment Size and Description Hourly Rate
$
$
$

Note: Contractor’s Equipment that will be used for project, to be charged to the job at an Hourly Rate. Also Contractor may submit their own Rate Sheet as part of Exhibit A.

Materials/Rentals Example % Mark Up
Parts/Materials/Equipment Invoicing must be demonstrated as a percentage.

Example: Material $1,000 + 10% ($100) = $1,100 %
*Outside Equipment (Rentals) Invoicing must be demonstrated as a percentage.

Example: Outside Equipment $2,000 + 10% ($200) = $2,200 %

*Rental Equipment must be pre-approved by City Project Manager

Special Note: Year 2 and subsequent years are increased based off CPI, which will be determined in April of 2026

Authorized Representative: Signature: __________________________ Company Name: __________________________ Date: ___________________

Sanitation ∙ Hydraulic ∙And ∙ Process
∙ Equipment

PLEASANTON SACRAMENTO STOCKTON
3825 Hopyard Rd, Ste 195 2356 Gold Meadow Way #270 119 Val Dervin Parkway # 2 Pleasanton, CA 94588 Gold River, CA 95670 Stockton, CA 95206 Phone (925) 485-9720 Phone (916) 892-5147 Phone (209) 234-5909 2025 SHAPE INC SERVICE RATES
Shop Rates
Labor Rates/Shop Rates
$135.00
Field Work/Travel Time
Service Boom Truck
$185.00 per hour
Service Call Pickup Truck $145.00 per hour

1. Above rates apply to travel and stand-by time.

2. No additional mileage. Mileage included in above.

Overnight Rates
Overnight Charge $350.00 per person

EXHIBIT A

Item #13

CITY COUNCIL AGENDA REPORT

June 3, 2025
Public Works - Utilities Division

TITLE: RECEIVE AN OVERVIEW OF SEWER RATES AND APPROVE STAFF RECOMMENDATION FOR CPI RATE INCREASE EFFECTIVE JANUARY 1, 2026

SUMMARY
The City’s water and sewer utilities operate as enterprise funds, which are self-supporting government funds providing goods and services to the public for a fee. Enterprise funds are financially independent and separate from the City's General Fund operations. On September 3, 2024, the City awarded a contract to Water Resources Economics, LLC (WRE) that includes conducting comprehensive sewer rate and connection fee studies.

In compliance with State Water Resources Control Board (SWRCB) requirements, the City completed an independent sewer system audit in January 2025 and is currently updating its Sewer System Management Plan (SSMP). Staff anticipates presenting the updated SSMP for Council review and adoption in June 2025, prior to submitting it to the SWRCB by the August 2, 2025 deadline. The City is also preparing a Long-Term Sewer CIP report that provides a detailed assessment of the City’s sewer system assets and recommends capital improvement projects to address identified needs. Staff anticipates presenting the report to Council for review and approval in or around October 2025. Upon completion, the approved report will be added to the SSMP by the SWRCB’s change log process.

The SSMP, including the Long-Term Sewer CIP report and Operation and Maintenance needs, will define the cost of services to maintain, repair, replace and sustain the city’s sanitary sewer system that meets State and Federal regulations. The document will serve as the foundation for the sewer rate study. The sewer rate study is expected to be completed in spring 2026 with new sewer rates to be adopted and become effective July 1, 2026. This timeline aligns with the Dublin San Ramon Services District (DSRSD) and City of Livermore wastewater treatment rate cycles, which are passed through and included in Pleasanton's overall sewer bills.

In 2023, the City Council approved sewer rate adjustments tied to the Consumer Price Index (CPI) effective January 1, 2024, for Fiscal Year 2023/24 and July 1, 2024, for Fiscal Year 2024/25. This sewer rate will expire June 30, 2025. Given the gap between the end of the current rate cycle and the adoption of new rates (July 1, 2025 to June 30, 2026), staff recommends continuing with the CPI increase effective January 1, 2026, for Fiscal Year 2025/26. Staff is also recommending authorization of the CPI increase for 2026/2027 so the CPI increase can continue into the following fiscal year, as needed, until the new rates are in place. The process for Council approval and Proposition 218 notification for these CPI increases would be included with the current water rate increase process, which is occurring July through October of 2025.

RECOMMENDATION
Receive an overview of sewer rates and approve staff recommendation for CPI rate increase

effective January 1, 2026

BACKGROUND
Pleasanton does not own or operate a wastewater treatment plant. Instead:
• DSRSD treats the majority of Pleasanton's wastewater, approximately 6 million gallons per day (mgd) average dry weather flow (ADWF); and
• the City of Livermore treats wastewater from the Ruby Hill development, with flows of approximately 0.25 mgd ADWF.

After secondary treatment at DSRSD or Livermore’s Water Reclamation Plant, treated wastewater is conveyed via the Livermore Amador Valley Wastewater Management Agency (LAVWMA) to the East Bay Dischargers Authority (EBDA) outfall for final disposal, unless it is reused for recycled water.

A Pleasanton sewer bill is comprised of the regional wastewater treatment component, either provided by DSRSD or Livermore, the transport component provided by LAVWMA (included in the treatment charges from DSRSD or Livermore) and finally the local collection component provided by Pleasanton. The portions of the sewer bill associated with the cost of the treatment and transport components are managed by DSRSD and Livermore and said charges are passed through to the customer by the City of Pleasanton. The portion of the sewer bill associated with the local sewer collection system is managed by Pleasanton.

The City’s Sewer Collection System
The City’s local sewer collection system serves a population of approximately 76,000 in a 25- square mile service area. The collection system consists of approximately 253 miles of gravity sewers, approximately 5.4 miles of force main, 8 siphons, 11 active pump stations, and 21,000 service connections.

Local City rates are developed to equitably allocate costs to users for asset operations, pay for debt service incurred for the construction of sewer facilities, and to perform the necessary maintenance and repairs (or replacement) of the sewer collection system. The costs also include the labor and pumping charges associated with the collection and pumping of raw sewage to the DSRSD and/or City of Livermore treatment plants. The local portion of the current City rates represents approximately 33 percent of the overall bi-monthly sewer bill.

In 2010, the City approved a combined water and sewer rate increase of 7.27 percent, followed by five years of annual CPI-based adjustments. In 2015, a similar CPI-based increase policy was approved for another five years. However, the City’s rapid population growth (approximately 5,000 new residents between 2015 and 2020) and system improvement needs were not factored into these adjustments.

The planned 2019 rate study was delayed by the COVID-19 pandemic. Further delays occurred when the City paused the PFAS treatment and well rehabilitation projects to explore alternative water supplies. As a result, there were no water or sewer rate adjustments in 2021, 2022, or 2023. In 2023, the City Council approved two years of CPI-based sewer rate increases, effective from January 1, 2024, to June 30, 2024, for the first year and July 1, 2024, for the second year.

DISCUSSION
Proposed CPI Adjustment for 2026
Staff recommends continuing CPI-based sewer rate adjustments for Fiscal Year 2025/26, effective January 1, 2026, and also authorizing continuation of the CPI increase for Fiscal Year 2026/27, effective July 1, 2026, to maintain financial stability until a sewer rate study is completed and adopted by Council, at which the updated rates will become effective. The CPI used will be the Consumer Price Index for All Urban Consumers (San Francisco-Oakland-San Jose area).

Upcoming Sewer Rate Study and SSMP
As required by the SWRCB, staff is currently completing the SSMP that is scheduled for Council approval in June 2025, prior to submitting it to the SWRCB by the August 2, 2025 deadline. The City is also preparing a Long-Term Sewer CIP report that provides a detailed assessment of the City’s sewer system assets, including hydraulic capacity and condition, and recommended capital improvements to meet identified needs. Staff anticipate presenting the report to Council for review and approval in October 2025. Upon completion, the approved report will be added to the SSMP by the SWRCB’s change log process. The SSMP, including the long-term CIP report, will be used as the foundation for the upcoming sewer rate study.

Based on preliminary results from the SSMP and the Long-Term CIP report, significant capital improvement and O&M needs have been identified, reinforcing the necessity of a detailed sewer rate study. It is expected that the sewer rate will need to be adjusted to ensure proper investment and management of the City’s sewer system. In addition to the capital needs, there are operations and maintenance needs for regulatory compliance per the SSMP. The new sewer rates, expected to be effective July 1, 2026, will support funding for ongoing operations, maintenance, and system rehabilitation over a four-year rate cycle (FY 26/27 through FY 29/30). However, staff recommends the approval of an CPI increase effective July 1, 2026, in case the upcoming sewer rate study gets delayed. If the sewer rate is on schedule, then it will supersede the July 1, 2026, increase.

Regional Sewer Treatment Rate Adjustments
Under Government Code §53756 (AB 3030 [2008]), the City may pass through wholesale treatment charge increases or decreases from DSRSD and the City of Livermore, provided that customers are given 30 days notice. Information on regional sewer rates can be found on the City’s website under the Utility Billing page.

Ruby Hill Rates
Wastewater from Ruby Hill is treated by the city of Livermore. Ruby Hill customers pay a sewer service charge equal to 90 percent of the City’s sewer rate, consistent with a 2017 agreement between Pleasanton and Livermore (City of Pleasanton Resolution 17-967; City of Livermore Resolution 2017-195). No structural changes to Ruby Hill’s rate methodology are proposed at this time. Information on Ruby Hill sewer rates can be found on the City’s website under the Utility Billing page.

Proposition 218 Notification Process
The proposed CPI increases for sewer rates will follow the same schedule as the proposed water rates. To implement the proposed CPI adjustment for 2026, the City must comply with Proposition 218, which requires:

• Mailing a 45-day notice to all water and sewer customers; and • Holding a public hearing on the proposed rates (scheduled for October 7, 2025); and • Publishing a supplemental public hearing notice 10 days before the public hearing.

Additional information will also be made available through the City's website and outreach platforms.  Staff will seek City Council approval and authorization to mail the Proposition 218 notice at the July 15, 2025 City Council Meeting.

NEXT STEPS
Date Action
July 15, 2025
City Council to receive an overview of water and sewer rates and authorize mailing of the Proposition 218 notice at a public hearing to be held October 7, 2025, regarding rate increases for 2026 July 30, 2025 Mail Public Hearing notice
October 7, 2025 Hold Public Hearing and consider proposed rate increases January 1, 2026 Implementation of rate increases

EQUITY AND SUSTAINABILITY
As a full-service municipality, the City provides a wide range of services and programs to meet the needs of all community members, including sewer collection services. Implementing annual CPI increases supports the fiscal sustainability of the City's sewer enterprise fund which benefits all community members.

OUTREACH
To implement the proposed sewer rate increases, state law requires the City to publish and mail a 45-day notice of proposed changes to all customers and hold a public hearing to adopt the proposed rates. In addition to the required notices, the City, as part of its standard operating procedures, is proposing to publish an additional notice for the public hearing regarding the rate changes ten days in advance of the public hearing proposed to be scheduled on October 7, 2025.

STRATEGIC PLAN ALIGNMENT
Approval of this action advances the ONE Pleasanton strategic plan goal of Funding our Future, Strategy 3 - Evaluate and update enterprise revenue sources, including utility rates, and connection and user fees to address growth and meet current needs.

FISCAL IMPACT
This item has no fiscal impact at this time as this is the second step in a three-step process.

Prepared by: Submitted by: Approved by:

Siew-Chin Yeong, Director
of Public Works
Siew-Chin Yeong, Director of Public
Works

Gerry Beaudin, City
Manager

Attachments:

None

Item #17

CITY COUNCIL AGENDA REPORT

June 3, 2025
Police

TITLE: CONTINUED FROM MAY 6, 2025 - RECEIVE AN UPDATE ON THE POLICE DEPARTMENT’S OPERATIONS, SERVICES AND ACTIVITIES

SUMMARY
The Police Department has presented reports to the City Council on community policing and department operations for the past four years. This report will focus on annual reporting to include updates in all areas of the police department.

This year, the City is seeing the benefits of adding a crime analyst, which has allowed the Police Department to target and solve certain types of crimes more effectively. Part 1 (more serious) crimes are down 10-15%, and, while still an issue, the City also saw a significant decrease in property crime in 2024. The Department used force in less than 1% of all contacts, and staffing has rebounded and is now stable. In the year ahead, we will continue to focus on recruitment and succession planning, knowing that we have several employees eligible for retirement. Youth engagement efforts grew with the launch of the Cadet Program, helping build a pipeline for future officers. Emergency response times are still being refined, and the department is committed to improving service delivery, while balancing speed and safety.

RECOMMENDATION
Receive an update on the Police Department’s operations, services and activities.

BACKGROUND
This report provides updates on key initiatives, including recent crime trends, crime data reporting, personnel investigations, and police staffing. In 2021, the police department began presenting bi-annual reports to the City Council in relation to operations, services, activities, and programs; however, the police department is recommending moving to presenting an annual report. The police department creates an annual report that is very resource intensive and could be used to present to the City Council on an annual basis moving forward. The annual report is all-encompassing and would include data and programmatic information and any other relevant information.

DISCUSSION
This report provides an analysis of Part I crimes for January through December 2024 in comparison to the previous three years, and average, for the same period. Part I persons crimes include homicide, rape, aggravated assault, and robbery. Part 1 property crimes include burglary, larceny, auto theft and arson. The data analytics indicate fluctuations in crime rates during the evaluation periods. Overall, in 2024, Part 1 persons crimes are down 10% compared to the previous year. Robberies are higher again this year, based on the previous year. The majority of Pleasanton robberies are related to retail crime. Police Department staff continue to partner with retailers in robbery prevention efforts. Part 1 property crimes have shown an overall decrease of 15% over the previous year, to include auto theft which has

remained high throughout the region.

The department's addition of a crime and intelligence analyst has enabled staff to use more intelligence-led strategies to address crime spikes and respond proactively. Some of those strategies include placing marked vehicles in areas of increased crime, deploying officers in high-crime and collision areas, and sharing real-time information with regional law enforcement partners and police department staff.

Table 1 below illustrates crime trends in Pleasanton for the past four years.

Table 1

Uniform Crime Reports (UCR) v. California Incident-Based Reporting System (CIBRS) As a reminder, the police department transitioned from the Uniform Crime Reporting System to the California Incident-Based Reporting System as required by the FBI. In December 2024, Pleasanton transitioned to a new Computer Aided Dispatch and Records Management System and with it, CIBRS data collection and reporting. The key difference between CIBRS and UCR is the elimination of the hierarchy rule and single incident reporting. Under the UCR hierarchy rule, only the single most serious offense was reported, regardless of whether other offenses occurred during the same incident. CIBRS will collect up to 10 of the reportable offenses when they occur at the same incident, which is effectively a more accurate way of reporting crime. In addition, using UCR single incident reporting, only one crime is reported for each incident regardless of the number of victims. Using CIBRS, a separate crime is reported for each victim. Effectively, CIBRS incident reporting is more detailed and accurate as compared to the traditional UCR standards, which can lead to post CIBRS misinterpretation of crime data as an increase in crime rather than a by-product of changes in data reporting rules.

Police Activity and Response Times
The police department facilitated 58,492 incidents in 2024, of which 22,014 were self-initiated and 36,478 were requests for service. 2024 saw an increase in officer-initiated activity and a small decrease in requests for service. See Table 2 below.

Table 2

Table 3 below identifies the most frequent type of police activity in 2024 as compared to 2023 and to the prior three-year average.

Table 3 - Police Activity

In 2024, traffic stops had a noticeable decrease compared to the previous year and 3-year average. The major drop in traffic stops and the rise in patrol checks can be attributed to several factors. One absolute is the absence of the traffic unit in 2024; however, other contributing factors can be directly related to staffing, experience levels of officers, and the significant number of trainees in 2024. Patrol checks were utilized in 2024 as a way to document directed and focused patrol checks at specific locations. The increase in the number of patrol checks also includes activity by the volunteers and three cadets.

Table 4 below outlines the number of traffic stops and dispositions of the stops, parking citations and collision data.

Table 4 - Traffic Data
2021 2022 2023 2024
Traffic Stops 13048 11727 9345 5532
Moving/Mechanical
Citations 3417 1583 1310 624
Parking Citations 1238 1030 1163 1090
Courtesy Citations 1508 948 752 421
Total Citations 6163 3561 3225 2135
Non-Injury Collisions 147 147 153 137
Injury Collisions 143 173 216 186

Use of Force
In 2024, the police department responded to 58,492 incidents involving 1,001 arrests (See Table 6 below). Force was used 87 times; however, 23 were for the display of firearms only.

Using all 87 documented uses of force against the number of arrests, force was used .09%.

Table 5

Table 6

Dispatch
Dispatch receives all calls into the police department and many after hours for the entire city.

There were 66,303 calls that came into dispatch in 2024. Of all inbound calls, 53% generated a call for service, as shown in Table 7 below.

Table 7

Response Times
Police response time goals are established in the General Plan as 4:00 minutes for emergencies and 20:00 minutes for non-emergency calls for service. The average emergency response time in 2024 was 5:16, and the non-emergency response time average was 19:34, as shown in Figures 1 and 2 below. On average, Pleasanton officers arrive on scene within 5:16 minutes of being dispatched. While this does not account for the time it takes to process and assign a call, it provides valuable insight into patrol coverage, traffic impacts, and response effectiveness once an officer is en route. This metric speaks directly to our patrol readiness, beat coverage, and traffic navigation efficiency.

While en route response time is a key performance indicator, it's equally important to recognize that officers must respond to emergencies in a manner that balances urgency with safety.

Under California Vehicle Code (21055 VC), law enforcement vehicles may proceed through red lights and exceed posted speed limits only when using lights and sirens, and responding to an emergency call. However, the vehicle code (21056 VC) also clearly states that these privileges do not relieve officers of the duty to drive with due regard for the safety of all persons.

Figure 1

Figure 2

Alternative Response Unit
The Alternate Response Unit (ARU) provides a non-uniformed response to assist community members in a mental health crisis, offers resources to family members, offers resources and long-term solutions to unhoused individuals. In 2024, the ARU responded to an average of 5.1 calls per day; see Table 8 below. ARU works in collaboration with several non-profit organizations for housing needs and encampment clean-ups.

Table 8 - ARU Calls for Service

Personnel Investigations
Personnel investigations occur when a member of the public or a member of the department

expresses concern about an employee's conduct. Generally, a supervisor reviews and investigates each complaint, which is then reviewed by the unit manager, a command officer, and the Chief of Police for impartiality, thoroughness, and accuracy. Depending on the scope and severity of the allegations, the Chief of Police in conjunction with the City’s Human Resources Department, may opt to contract with an outside investigator.

At the conclusion of the investigation, each allegation of a policy violation will be assigned one of four possible findings. The finding options are unfounded, not sustained, sustained or exonerated. An “unfounded” finding means the alleged conduct did not occur. A finding of “sustained” means the conduct did occur and resulted in a policy violation. A “not sustained” finding is assigned when there is not enough evidence to determine if a policy violation did or did not occur. An employee is “exonerated” when the conduct did occur, and that conduct was proper and within policy.

Table 9 below illustrates the total number of internally and externally generated complaints from 2020–2024.

Personnel Complaints
During the identified timeframe, the most frequently sustained complaint was internally generated. The use of body-worn cameras has a significant impact to the outcome of citizen- generated complaints. While some complaints may not be sustained for policy violations, the police department takes every complaint seriously and as an opportunity to better the profession and the services it provides.

Table 9 - Internally and Externally Generated Complaints 2020-2024

2020 2021 2022 2023 2024* Internal 3 8 5 2 9
Citizen 5 3 4 6 10
Total 8 11 9 8 19
Sustained 1 6 4 2 7
*Three cases pending as not all investigations have been completed

Clearance Rates
In 2024, the police department cleared 93% of violent crimes, and cleared well above the national average in all violent crime areas. Property crime clearance remained comparable to the three-year average at 21%, These numbers reflect the hard work of the investigative teams, especially in complex violent cases, and reinforce the department's commitment to holding offenders accountable. The police department looks forward to utilizing additional technological resources to improve clearance rates, especially as they relate to property crime.

Table 10

Hiring and Staffing
The department is authorized for 83 sworn positions and 35 professional staff. Under the leadership of the Chief of Police, the department is comprised of three divisions: Operations, Investigations, and Support Services. A captain or commander leads each division. The Operations Division includes uniform patrol, traffic, special events, crime prevention, and animal services. The Investigations Division includes Personnel and Training, Criminal Investigations, Special Enforcement, and Youth and Community Services. Support Services include police Dispatch, Records, and Cadets.

In 2024, 12 sworn members were hired, and five professional staff members were hired. As of April 2025, the department has zero police officer vacancies. There are 8 sworn members on medical leave. There are four police officer trainees in or about to start the academy and two officers in the Field Training Program. There is one officer currently on a yearlong military deployment. Of the 83 sworn members of the police department, 18% are unavailable to be deployed.

The dispatch center and all other professional staff positions are currently filled and functioning at an extremely high level.

Youth Engagement Programming as a Recruitment Mechanism Recognizing the youth of Pleasanton as future leaders and with the goal of developing a workforce reflective of the community, there has been a strong focus on the department’s youth programs. Traditionally, this occurred through the Police Explorer program and the Teen Academy. Recognizing a potential missed opportunity to remain connected to 18–21 year-old

former Explorers, the City launched the Police Cadet Program and hired the police department's first three cadets. The Cadet Program is designed to serve as a pipeline, keeping youth connected to the Pleasanton Police Department. It bridges the time gap between those who age out the Explorer Program and the age eligibility requirement to become a police officer. The part-time work program allows the cadets to begin their working career and continue their formal education. As of April 2025, one cadet has been hired as a police officer and is currently attending the police academy.

Retirements
Although the department has significantly succeeded in its hiring effort over the past 12 months, the City must stay focused on this objective. The Pleasanton Police Department may experience a significant turnover in leadership and a need to fill vacant police officer positions resulting from retirements. In 2025, 12 sworn staff members are either eligible for retirement or will become eligible for retirement. These numbers include one sworn member that has announced their retirement. It is likely that some, but not all, will elect retirement. Table 11 below depicts the number of eligible retirees and the rank each currently holds.

Table 11

Educational Background
The police department is represented by a team of highly educated and motivated professionals. Currently, 86% of sworn officers hold (or in process) a Bachelor’s degree or higher and 27% having earned (or in process) a Master’s degree. Seven of the department's dispatchers have advanced certifications beyond standard requirements.

EQUITY AND SUSTAINABILITY
The police department remains committed to serving everyone in the community. This report highlights the department's ongoing work to continue building trust and transparency throughout the city.

OUTREACH
No outreach was conducted, as this item is a routine matter of City business.

STRATEGIC PLAN ALIGNMENT
This report is aligned with the ONE Pleasanton Strategic Plan goal of Safeguarding our City in providing comprehensive public safety services that foster a safe and secure community, and with the Pleasanton Police Department's Strategic Plan to increase community trust and promote a culture of transparency and accountability.

FISCAL IMPACT
There is no fiscal impact associated with this action.

Prepared by: Submitted by: Approved by:

Tracy Avelar, Police Chief Tracy Avelar, Police Chief

Gerry Beaudin, City
Manager

Attachments:

1. Presentation

Police Department Update
City Council Meeting, May 6, 2025
Background
•Update on Key Areas
•UCR v. CIBRS Reporting
•Crime Trends/Activity
•Personnel Investigations
•Hiring and Staffing
•Youth Engagement

Crime Trends
• Reported crime is captured using the Uniform Crime Report for the final year • Two Crime Types-Persons and Property
Persons crime is down 10%,
Property Crime is down 15%
• Increase in Robberies
• Prevention strategies to include
technology continue to be a focus
UCR Reporting
PART I CRIMES 2021 2022 2023 2024
Homicide 0 0 3 1
Rape 11 11 20 6
Aggravated Assault 51 53 36 42
Robbery 49 18 33 35
Violent Crimes 111 82 92 84
Burglary 121 144 206 155
Larceny/Theft 907 1078 1100 948
Stolen Vehicle 113 100 188 171
Arson 7 5 6 4
Property Crimes 1148 1327 1500 1278
TOTAL 1259 1409 1592 1362
Reminder UCR v. CIBRS
•UCR crime reporting standard since 1930s
•CIBRS certified in California by DOJ
•Pleasanton Police transition to CIBRS December 2024
•Pleasanton reporting CIBRS data starting January 2025
•Key differences between UCR and CIBRS

Activity
All Calls for Service
2021 2022 2023 2021-2023 Average 2024
On-view/Self Initiated 27,285 22,938 21,331 23,851 22,014 Requests for Service 36,049 37,045 38,510 37,201 36,478 Total Incidents 63,334 59,983 59,841 61,053 58,492
2021 2022 2023 2021-2023 Average 2024
TRAFFIC STOP 13,040 11,727 9,345 11,371 5,532
PATROL CHECK 7,870 4,675 4,500 5,682 10,135
ALARM 1,659 1,932 2,010 1,867 2,019
SUSPICIOUS VEHICLE 1,900 2,327 2,175 2,134 2,233
PEDESTRIAN STOP 865 2,002 3,214 2,027 2,734
ILLEGAL PARKER 1,806 1,577 2,054 1,812 1,459
DISTURBANCE 1,496 1,578 1,535 1,536 1,599
WELFARE CHECK 1,512 1,538 1,449 1,500 1,560
SUSPICIOUS PERSON 874 959 1,268 1,034 1,002
ANIMAL CALL 628 1,364 1,300 1,097 1,246
Use of Force

Dispatch Call Volume
Dispatch Call Volume
911 calls 17,136
10-Digit Emergency Inbound 12,274
Admin Inbound 36,893
Total All Inbound Calls 66,303
All Outbound Calls 21,993
Total Inbound and Outbound Calls 88,296
Citizen Initiated Calls for Service 35,182
Percentage of all Inbound calls
that generated a CFS 53%
Total Cases
2021-2023 Average 2024
Total Cases 4870 4265
Response Times

Alternate Response Unit-ARU
Month Deferred from Patrol Assisted patrol Proactive Total CFS January 20 20 25 65
February 41 26 35 102
March 30 26 36 92
April 45 27 41 113
M a y 3 9 3 62 09 5
June 27 21 48 96
July 24 24 42 90
August 45 25 30 100
September 61 34 60 155
October 47 24 100 171
November 46 25 50 121
December 32 15 21 68
2024 YTD 457 303 508 1268
2023 YTD 362 236 241 839
Personnel Investigations
Personnel Complaints
2020 2021 2022 2023 2024* Internal 3 8 5 2 9
Citizen 5 3 4 6 10
Total 8 11 9 8 19
Sustained 1 6 4 2 7
*Three cases pending as not all investigations have been completed

Hiring and Staffing
•Deployable sworn strength of 82% (Today)
•8 sworn members on medical leave
•2 officers in FTO
•4 officers in or preparing to enter academy, including one Cadet •Deployable sworn strength anticipated 2nd quarter 2025: 91% •Zero Vacancies
•All professional staff positions filled
Retirement Eligibility
Retirement Eligibility by Rank
Captain 1
Lieutenant 2
Sergeant 5
Officer 4

Questions?

Item #18

CITY COUNCIL AGENDA REPORT

June 3, 2025
Public Works - Utilities Division

TITLE: RECEIVE A PRESENTATION AND ACCEPT STAFF RECOMMENDATIONS ON

WATER DROUGHT RATES AND CONNECTION FEES

SUMMARY
The City owns and operates water systems that supply and deliver water to customers. These systems are financially managed as separate enterprise funds. On September 3, 2024, the City contracted with Water Resources Economics, LLC (WRE) to perform water rate and connection fee studies with the goal of establishing cost-based and legally defensible rates and connection fees to support the long-term financial sustainability of the City’s water program.

To establish updated water rates, the City Council first approved a water system financial plan prepared by WRE in March 2025. In May 2025, WRE performed a rate design analysis to allocate the revenue requirements determined as part of the financial plan among the different customer classes. The resulting proposed water rates have been finalized and are included in the attached technical memorandum.

As part of the water rate-setting process, it is also necessary to update the water drought rates, which are consumption-based surcharges that can be implemented during water shortage emergencies to maintain the City’s financial position. The attached technical memorandum by WRE details the staff-recommended rate structure, which includes a usage allotment for all customers of 8 centum cubic feet (ccf) every bi-monthly billing period exempt from the drought rate charges. The recommended allotment accounts for the difficulty in reducing low-end usage during water shortage emergencies, while encouraging high-end usage to be reduced to meet conservation targets.

In addition to water rates, the City is recommending an update to its water connection fees, which are one-time capital fees assessed against new development(s) to recover the proportional share of capital facility investment to be constructed or previously constructed to accommodate growth. Staff recommends calculating the connection fee utilizing the hybrid method, which is typically used for water systems in cities that have some capacity available to serve new growth but also require some additional expansion. The recommended connection fee is $5,269 per dwelling unit equivalent (DUE), and the basis is included in the attached technical memorandum.

The next steps in the process include accepting the water rate and connection fee reports and approving the Proposition 218 notice, which will be presented to Council in July 2025, conducting a 60-day public review period followed by a public hearing to adopt water rates and connection fees in October 2025, and implementing new rates and connection fees effective on January 1, 2026.

RECOMMENDATION

1. Receive presentation on the water drought rates and connection fee study.

2. Accept staff recommendation for drought rates to provide an 8 ccf per bill allotment to all customers.

3. Accept staff recommendation for connection fees to be calculated based on the hybrid method.

BACKGROUND
The City is a water retailer that operates and maintains a water distribution system to deliver water to City residents and businesses for domestic, commercial, irrigation, firefighting and other uses. Zone 7 Water Agency (Zone 7) is the Tri-Valley’s water wholesaler. It procures water from the California Department of Water Resources (DWR) and produces water from its regional wells, which it sells to the City and other Tri-Valley water retailers for distribution.

Since November 2022, the City has been receiving 100 percent of its water supply from Zone 7 due to the City Council electing to discontinue the use of the City’s groundwater supply wells because of the presence of per- and polyfluoroalkyl substances (PFAS) at concentrations above upcoming regulatory requirements.

In 2023, the City Council approved a two-year water rate increase of 30 percent effective January 2024 and 12 percent effective January 2025 to maintain adequate funding for short- term operations and maintenance of the water system and to replenish the reserves to City Council-approved levels. In 2024, the City Council approved the Water System Management Plan (WSMP), which identified a 20-year Capital Improvement Program (CIP) and long-term operations and maintenance strategies. The WSMP serves as the foundation for identifying the financial needs of the water program moving forward. In 2024, the City contracted with WRE to perform water rate and connection fee studies with the goal of establishing cost-based and legally defensible rates and connection fees to support the long-term financial sustainability of the City’s water program. New water rates and connection fees are anticipated to become effective on January 1, 2026.

To recommend new water rates, the City is following a multiple-step process that complies with Proposition 218 and industry best practices. In March 2025, the City Council approved a water system financial plan prepared by WRE, which included implementing an enhanced CIP delivery model from the WSMP. The financial plan recommended revenue increases of 15 percent for the first two years and 8 percent for the following two years, and issuing $35 million of debt to fund near-term capital improvements. In May 2025, WRE performed a rate design analysis to allocate the revenue requirements determined as part of the financial plan among the different customer classes. The recommended rate structure was approved by the City Council at its May 6, 2025 meeting, and included uniform consumption-based variable charges for all customer classes (as opposed to tiered) and Zone 7 fixed costs being 100 percent recovered as pass-through fixed charges to customers (as opposed to a portion of Zone 7 fixed costs recovered as variable charges). The benefits of the selected rate structure are that it is consistent with recent legal rulings related to Proposition 218 and reduces financial risk to the water program in periods of reduced water demand. However, the selected rate structure will have a higher bill impact (in terms of percentage increase) on customers with lower usage.

The resulting proposed water rates are included in the attached technical memorandum by WRE. Next steps include presenting the water rate study report and Proposition 218 notice to

the City Council on July 15, 2025, for acceptance and approval. The proposed water rates will then go through a 60-day public review period, followed by a public hearing on October 7, 2025, for the City Council to adopt rates.

DISCUSSION
Water Drought Rates
Water shortages occur whenever the availability of the water supply cannot meet the normally expected customer water use. As the State’s 2018 Water Conservation legislation requires, the City maintains a Water Shortage Contingency Plan (WSCP), which includes six stages of potential percent water reductions and corresponding response actions. The City Council will determine if a water shortage condition exists and, if needed, adopt a resolution declaring a water shortage emergency and the associated water shortage stage.

During a water shortage emergency, customers reduce their usage, reducing the City’s variable revenue. Water drought rates are a consumption-based surcharge that can be implemented during this emergency period to maintain the City’s financial position. Water drought rates are set to recover variable revenue loss from reduced usage, minus the cost savings from reduced variable expenses. Water drought rates are just one option among others to maintain financial position, including implementing partial water drought rates, utilizing water reserve funds, and deferring CIP expenditures.

The current water drought rate structure has a usage allotment for all customers of 10 ccf every bi-monthly billing period that is exempt from the charges. Based on updated consumption patterns, staff recommends reducing the drought allotment to 8 ccf per bi-monthly period to ensure the total annual usage allotment remains below the annual usage reduction requirement for each water shortage stage. The attached technical memorandum compares the recommended drought rates with 8 ccf allotment to the current drought rates with 10 ccf allotment. Note that based on the City Council’s direction to move forward with 100 percent fixed charge recovery of Zone 7 fixed costs, the recommended water drought rates will be lower than the current drought rates, as it is now just the City’s variable charge recovering a portion of its fixed costs that is at risk during water shortage emergencies. The attached technical memorandum also illustrates the Year 1 bill impacts of drought rates during Stage 2 shortage (20 percent usage reduction) for a single-family customer at different water usage levels. Note that for all usage levels, if the customer achieves the usage reduction, they will have a lower bi-monthly bill despite the drought rate charges. For low-end users, the customer will not be charged drought rates since the reduced usage falls within the allotment, such that if the low-end user does not reduce their usage, the drought rate impact is minimal.

As an alternative, WRE evaluated a new drought rate structure with no drought allotment; the attached technical memorandum presents the drought rates for this alternative. Note that the rates are lower than both the current drought rates with a 10 ccf allotment and the new recommended drought rates with an 8 ccf allotment because the required revenue is charged to all usage. The attached technical memorandum illustrates the Year 1 bill impacts of the alternative drought rates during Stage 2 shortage for a single-family customer at different water usage levels. Like the recommended alternative at all usage levels, if the customer achieves the usage reduction they will have a lower bi-monthly bill despite the drought rate charges. For low-end users, if the customer does not reduce their usage the alternative drought rate increases their bill by about six percent.

Staff recommends a water drought rate structure with an 8 ccf allotment. This structure accounts for the difficulty of reducing low-end usage during water shortage emergencies but encourages reducing high-end usage to meet needed conservation targets.

Water Connection Fees
Water connection fees are one-time capital charges assessed against new development to recover the proportional share of capital facility investment to be constructed or previously constructed to accommodate growth. Connection fees must reflect the link between the fee imposed on, and the benefit received, by a new connection to the system and may not exceed the reasonable share of costs associated with providing the service.

The method for calculating connection fees generally utilizes one of three approaches:

1. Incremental Cost Method – This method states that new users should pay for the additional capacity and expansion costs to the water system necessary to accommodate them. The method is calculated by dividing the total of expansion capital projects (as estimated in the WSMP) by the anticipated total increase in future DUEs to determine the connection fee per DUE. This method is how the City has historically calculated its water connection fees.

2. Buy-in Method – This method is designed to recover the historical costs of infrastructure investments in proportion to the amount of built capacity, some of which is available for new growth. It is calculated by taking the current water system value and dividing it by the current DUEs to determine the connection per DUE.

3. Hybrid Method – This method is typically used where the existing water system has some capacity available to serve new growth, but some additional expansion is also needed to accommodate new development. This method is calculated by determining the buy-in and incremental fees and adding them together. Revenues from the buy-in component are transferred to the water enterprise fund to refund existing customers and revenues from the incremental component are transferred to the CIP expansion fund.

Recent water conservation trends have decreased the burden of current water customers on the City’s water system, leading the City to realize some spare capacity available for future growth. However, as determined in the WSMP, portions of the water system require expansion to accommodate new development, particularly related to water supply transmission and storage. Therefore, staff recommends utilizing the hybrid method to determine connection fees.

The recommended connection fee is $5,269 per DUE with the buy-in component at $2,444 and the incremental component at $2,825 (refer to the attached technical memorandum by WRE for calculations). As a comparison, the City of Livermore’s connection fee is $5,462 per DUE and DSRSD’s connection fee is $15,670 per DUE. The City’s water connection fee is recommended to be increased each year by the Consumer Price Index. As the City updates its water system planning in future years, the cost of capacity improvements to support growth and the water system's value may change. The adequacy of the connection fee will be monitored and adjusted as needed.

NEXT STEPS
With direction and approval of water drought rates and water connection fees by the City

Council, staff will proceed to the next milestones as follows:
• Accept water rate and connection fee reports and approve Proposition 218 notice – July 15, 2025, City Council Meeting
• 60-day public review period – August and September 2025 • Public hearing and adoption of water rates and connection fees – October 7, 2025, City Council Meeting
• New water rates and connection fees, effective January 1, 2026

EQUITY AND SUSTAINABILITY
As a full-service municipality, the City provides a wide range of services and programs to meet the needs of all community members, including water supply and delivery. Completing the water rate and connection fee studies and updated water rate process will support the fiscal sustainability of the City's water enterprise fund.

OUTREACH
The City has proactively shared information on water activities and efforts related to the Water System Management Plan and the Water Rate Study, including the Pleasanton Water Open House, a "Let’s Talk Water" questionnaire, press releases, the Pleasanton Pipeline newsletter, social media posts for "Water Wednesdays", continuous updates to the Pleasanton Water webpages, and online portal, bill inserts and similar notices and messaging. The City continues to engage the Pleasanton Water Advisory Group - comprised of residents and businesses who reflect a broad spectrum of community interests and perspectives - to provide input and feedback on improving the sustainability and stability of the City's water system.

STRATEGIC PLAN ALIGNMENT
Approval of this action advances the ONE Pleasanton strategic plan goal of Funding our Future, Strategy 3 to evaluate and update enterprise revenue sources, including utility rates, and connection and user fees to address growth and meet current needs.

FISCAL IMPACT
This item has no fiscal impact at this time. Staff will propose necessary budget adjustments based on the results of the water rate and connection fee process for City consideration and approval in future budget cycles.

Prepared by: Submitted by: Approved by:

Siew-Chin Yeong, Director
of Public Works
Siew-Chin Yeong, Director of Public
Works

Gerry Beaudin, City
Manager

Attachments:

1. Water Drought Rates and Connection Fees Technical Memo, May 15, 2025

2. Presentation

Memo

To: Siew-Chin Yeong, Director of Public Works – City of Pleasanton From: Nancy Phan, Project Manager – Water Resources Economics, LLC Date: May 15, 2025
Re: Water Drought Rates and Connection Fees Technical Memo

INTRODUCTION

Water Resources Economics, LLC (WRE) was engaged by the City of Pleasanton (City) in 2024 to conduct water rate and connection fee studies to develop an updated four-year schedule of water and recycled water rates, water drought rates, and water connection fees. The City has finalized the multi-year proposed water and recycled water rate schedules and is currently seeking City Council input on water drought rates and connection fees to complete the process.

WATER AND RECYCLED WATER RATE RECAP

The table below shows the proposed four-year schedule of combined water rates (i.e. City component and Zone 7 pass-through component) relative to current combined water rates based on the overall increased financial needs. The new rate structure includes uniform consumption based variable charges for all customer classes and Zone 7 fixed costs being 100 percent recovered as fixed charges to customers.

The tables below show the combined water rates above split between their City and Zone 7 components. Zone 7 water supply costs will be billed to customers as pass-through charges projected to increase by 5% each year from CY 2026 to CY 2029. Actual pass-through charges are subject to change year-to-year based on actual Zone 7 costs and therefore can be increased without additional Proposition 218 noticing. City charges greater than that shown would require additional Proposition 218 noticing.

City of Pleasanton
Water Drought Rates and Connection Fees Technical Memo

The table below shows the proposed four-year schedule of recycled water rates relative to current recycled water rates based on the overall increased financial needs.

DROUGHT RATE METHODOLOGY
Drought rates are tools to effectively respond to water shortage emergencies while maintaining the City’s financial position and operating ability. Drought rates are implemented in stages for different levels of mandated water usage reduction outlined in the City’s Water Shortage Contingency Plan (Stages 1 through 6). When customers reduce their usage at each stage, the City’s rate revenues from variable charges are reduced. Drought rates are designed to maintain the City’s financial position during periods of reduced water consumption and recover the

City of Pleasanton
Water Drought Rates and Connection Fees Technical Memo

costs of drought, which includes variable revenue loss from reduced usage minus cost savings from reduced variable expenses.

For drought rates to be implemented, the City would declare a water shortage emergency and elect to implement drought rates corresponding to the appropriate stage. Drought rates are one option for agencies during a water shortage emergency amongst other options to recover drought costs including using reserve funds, implementing a partial drought rate, deferring CIP expenditures, etc.

Based on the City Council’s direction to move forward with full fixed charge recovery of Zone 7 fixed costs, proposed drought rates will be lower than current drought rates as less variable revenue is at risk during water shortage emergencies.

Currently, the City has a drought usage allotment of 10 ccf per customer every bi-monthly billing period that is exempt from being charged drought rates. Based on updated consumption patterns, WRE recommends reducing the drought usage allotment to 8 ccf per bi-monthly billing period to ensure that the total annual usage allotment remains below the annual usage reduction requirement for each stage of drought rates.

The City is seeking input on whether this drought allotment policy should be continued. The benefits and challenges of each option will be evaluated in addition to rate impacts for different levels of water usage:
• Option 1: Maintain the drought allotment policy (update allotment from 10 ccf to 8 ccf) • Option 2: Remove the drought allotment policy

PROPOSED DROUGHT RATES AND IMPACTS

Two drought rate scenarios will be evaluated below based on the benefits and challenges associated with each in addition to customer impacts.

Option 1: Maintain the drought allotment policy (update allotment from 10 ccf to 8 ccf) • Benefits: Benefits lower end users by accounting for lower users’ lower ability to reduce usage during water shortage emergencies compared to higher end users • Challenges: Increases unit drought rate for all usage over 8 ccf

The table below shows the proposed drought rates with an 8 ccf allotment per bi-monthly billing period for all customers relative to current drought rates with a 10 ccf allotment.

Drought Rates Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Stage 6 Usage Reduction 10% 20% 30% 40% 50% 60%
Current Drought Rates (10 ccf allotment)
Single Family
Tier 1 $0.77 $1.92 $3.54 $6.34 $11.91 $17.90
Tier 2 $0.90 $2.24 $4.14 $7.40 $13.90 $20.90
Tier 3 $0.98 $2.43 $4.48 $8.01 $15.05 $22.61
Tier 4 $1.01 $2.52 $4.67 $8.36 $15.70 $23.60
Multi-Family $0.77 $1.91 $3.53 $6.32 $11.87 $17.82
Commercial $0.78 $1.96 $3.62 $6.46 $12.15 $18.26
Industrial $0.78 $1.96 $3.62 $6.46 $12.15 $18.26
Irrigation $0.90 $2.25 $4.16 $7.42 $13.95 $20.96
Proposed Drought Rates (8 ccf allotment)
Year 1 $0.44 $1.02 $1.84 $3.08 $5.18 $9.54
Year 2 $0.51 $1.18 $2.12 $3.55 $5.96 $10.98
Year 3 $0.56 $1.28 $2.29 $3.84 $6.44 $11.86
Year 4 $0.61 $1.39 $2.48 $4.15 $6.96 $12.81

City of Pleasanton
Water Drought Rates and Connection Fees Technical Memo

The graphs below show year 1 bill impacts for drought rates during Stage 2 (20% usage reduction) for a Single Family customer at different levels of water usage with 8 ccf exemption. If the customer reduces their usage according to Stage 2, for each usage level the customer will have a lower bi-monthly bill than in normal, non- drought conditions despite the drought rate charges. For lower users, the customer will not be charged drought rates since the reduced usage falls within the allotment. If the low user customer does not reduce their usage the drought rate is minimal.

Option 2: Remove drought allotment policy
• Benefits: Slightly increases financial stability by collecting drought rates on all usage • Challenges: Higher impact on lower users

The table below shows the proposed drought rates with no drought allotment relative to current drought rates with a 10 ccf allotment.

Drought Rates Baseline S tage 1 Stage 2 Stage 3 Stage 4 Stage 5 Stage 6 Usage Reduction 10% 20% 30% 40% 50% 60%
Current Drought Rates (10 ccf allotment)
Single Family
Tier 1 $0.77 $1.92 $3.54 $6.34 $11.91 $17.90
Tier 2 $0.90 $2.24 $4.14 $7.40 $13.90 $20.90
Tier 3 $0.98 $2.43 $4.48 $8.01 $15.05 $22.61
Tier 4 $1.01 $2.52 $4.67 $8.36 $15.70 $23.60
Multi-Family $0.77 $1.91 $3.53 $6.32 $11.87 $17.82
Commercial $0.78 $1.96 $3.62 $6.46 $12.15 $18.26
Industrial $0.78 $1.96 $3.62 $6.46 $12.15 $18.26
Irrigation $0.90 $2.25 $4.16 $7.42 $13.95 $20.96
Proposed Drought Rates (0 ccf allotment)
Year 1 $0.34 $0.75 $1.28 $1.99 $2.98 $4.46
Year 2 $0.40 $0.87 $1.48 $2.29 $3.43 $5.13
Year 3 $0.44 $0.94 $1.60 $2.48 $3.71 $5.55
Year 4 $0.48 $1.02 $1.73 $2.68 $4.01 $6.00

City of Pleasanton
Water Drought Rates and Connection Fees Technical Memo

The graphs below show year 1 bill impacts for drought rates during Stage 2 (20% usage reduction) for a Single Family customer at different levels of water usage with no allotment. Again, if the customer reduces their usage according to Stage 2, for each usage level the customer will have a lower bi-monthly bill than in normal, non- drought conditions despite the drought rate charges. If the low user customer does not reduce their usage the drought rate increases their bill by over 5 percent.

CONNECTION FEE METHODOLOGY

The City collects one-time connection fees for new connections to the City’s water system. Connection fees are used to equitably recover capital costs incurred by an agency to provide system capacity to new customers. Water agencies can use one of three widely accepted methodologies to calculate connection fees:

Methodologies Goal Basis Suitability Effect
Equity Buy-In
Method
Recover the
equitable share of
historical capital
costs to provide
capacity
Existing system
capital assets (based
on RCLD asset
valuation method)3
Agencies with extra
capacity within their
existing system
New customers "buy
in" to system
capacity that past
and current
customers built
Incremental
Cost Method
Recover the
equitable share of
future capital related
capital costs
Future capacity
related capital costs
Agencies that are
adding capacity to
their existing system
New customers pay
for capital costs built
to build new capacity
Hybrid Method Recover the
equitable share of
historical capital
costs and future
capital costs related
to capacity
Existing system
capital assets and
future capacity
related capital costs
Agencies that have
both existing and
future capacity
New customers pay
a portion to "buy in"
to existing system
capacity and a
portion to build new
capacity

City of Pleasanton
Water Drought Rates and Connection Fees Technical Memo

3The RCLD (Replacement Cost Less Depreciation) asset valuation method is calculated based on the total replacement cost of each system asset, less total accumulated depreciation over each asset’s useful life

The City has used the incremental cost method to calculate connection fees in the past, which are based on projected capital costs to build new capacity and estimated units of service that the new capital projects can accommodate. Recent water conservation trends have decreased the burden of current water customers on the City’s water system, leading the City to realize remaining capacity within the City’s existing system to accommodate new growth.

WRE recommends the Hybrid Method for the City’s water connection fees since the existing water system has remaining capacity to serve new customers and the City has planned capacity related capital projects within the next 20 years to accommodate additional growth. Under the Hybrid Method, the revenues from the Equity Buy-In component are transferred to the water enterprise fund to “refund” existing customers, and revenues from the Incremental component are used to fund expansion-related capital costs.

Updating the methodology from the Incremental Cost Method to the Hybrid Method involves the following:
• Updating the Incremental component based on the City’s 20-year capital costs to accommodate new growth and estimated units of service new capital projects can accommodate • Adding the Equity Buy-In component based on the City’s valuation of current system assets and estimated units of service related to current customers
• Increasing connection fees by CPI each year

PROPOSED CONNECTION FEES AND IMPACTS

The table below shows the connection fee calculation based on the Hybrid Method. Buy-In costs are allocated towards the current system, and Incremental costs are allocated towards the future system. The proposed connection fee per unit of service is $5,269, representing the total of current and future system capacity costs.

The graph below shows the proposed connection fee based on the Hybrid Method relative to the current connection fee and the connection fees of other agencies that also receive Zone 7 water. The current connection fee includes only future system capacity costs and is currently the lowest relative to other agencies. After the proposed changes the connection fee remains the lowest relative to other agencies. Connection fees are typically more variable by agency than rates since they are dependent on agency specific system characteristics.

System Value Current System Future System Total
Buy-In $102,339,948 $102,339,948
Incremental - Water Supply, Transmission & Quality $6,777,458 $6,777,458 Incremental - Water Distribution Piping $3,380,000 $3,380,000 Incremental - Water Facilities $13,016,200 $13,016,200
Total $102,339,948 $23,173,658 $125,513,606
Unit Cost Current System Future System Total
Existing System Value (Buy-In) $102,339,948 $102,339,948 Future User CIP (Incremental) $23,173,658 $23,173,658
Equivalent Meters Served 41,880 8,205 50,085
Connection Fee $2,444 $2,825 $5,269

City of Pleasanton
Water Drought Rates and Connection Fees Technical Memo

5/21/2025
City of Pleasanton
City Council – Connection Fees, Drought Rates, and Water Rates June 3, 2025
1 Agenda
• Water Rate Recap
• Proposed Water Rates
• Drought Rate Methodology
• Proposed Drought Rates and Impacts
• Connection Fee Methodology
• Proposed Water Connection Fees
• Next Steps and Schedule
2 1
2

5/21/2025
Water Rates
Water Rate Recap
• Staff and WRE presented preliminary water rate scenarios to City Council on May 6, 2025
• City Council provided direction to move forward with 100% Zone 7 fixed cost recovery on fixed charges
• Potential changes to discount program are still TBD
• Changes to water rates are driven by:
• Financial needs associated with WSMP “Enhance” scenario • Full fixed charge recovery of Zone 7 fixed costs
4 3
4

5/21/2025
Water Rates – Combined
5 Combined Rates Current Rates Effective
1/1/2026
Effective
1/1/2027
Effective
1/1/2028
Effective
1/1/2029
Bi-Monthly Fixed Charges (Potable Water)
5/8" $24.01 $58.33 $67.08 $72.45 $78.25
3/4" $34.30 $84.10 $96.72 $104.46 $112.82
1" $60.06 $135.62 $155.97 $168.45 $181.93
1 1/2" $127.01 $264.45 $304.12 $328.45 $354.73
2" $168.21 $419.04 $481.90 $520.46 $562.10
3" $466.94 $908.56 $1,044.85 $1,128.44 $1,218.72
4" $817.14 $1,629.97 $1,874.47 $2,024.43 $2,186.39
6" $1,445.48 $3,356.19 $3,859.62 $4,168.39 $4,501.87
8" $3,608.59 $7,220.88 $8,304.02 $8,968.35 $9,685.82
10" $5,668.70 $10,827.91 $12,452.10 $13,448.27 $14,524.14 Variable Charge ($/ccf) $6.13 - $8.39 $5.70 $6.56 $7.09 $7.66 Water Rates – City Rates
6 City Rates Current Rates Effective
1/1/2026
Effective
1/1/2027
Effective
1/1/2028
Effective
1/1/2029
City Bi-Monthly Fixed Charge (Potable Water)
5/8" $5.53 $11.90 $18.33 $21.27 $24.51
3/4" $6.59 $14.46 $23.60 $27.68 $32.21
1" $9.25 $19.56 $34.10 $40.49 $47.57
1 1/2" $16.14 $32.32 $60.39 $72.53 $86.02
2" $20.39 $47.64 $91.93 $110.99 $132.16
3" $51.16 $96.12 $191.79 $232.73 $278.22
4" $87.23 $167.58 $338.96 $412.14 $493.49
6" $151.96 $338.56 $691.10 $841.45 $1,008.58
8" $374.78 $721.36 $1,479.53 $1,802.63 $2,161.82
10" $586.99 $1,078.63 $2,215.36 $2,699.69 $3,238.13
City Variable Charge $2.47 - $4.73 $2.97 $3.70 $4.08 $4.50 5 6

5/21/2025
Water Rates – Zone 7 Passthrough
7 Zone 7 Passthrough Current Rates Effective
1/1/2026
Effective
1/1/2027
Effective
1/1/2028
Effective
1/1/2029
Zone 7 Bi-Monthly Fixed Charge (Potable Water)
5/8" $18.48 $46.43 $48.75 $51.18 $53.74
3/4" $27.71 $69.64 $73.12 $76.78 $80.61
1" $50.81 $116.06 $121.87 $127.96 $134.36
1 1/2" $110.87 $232.13 $243.73 $255.92 $268.71
2" $147.82 $371.40 $389.97 $409.47 $429.94
3" $415.78 $812.44 $853.06 $895.71 $940.50
4" $729.91 $1,462.39 $1,535.51 $1,612.29 $1,692.90
6" $1,293.52 $3,017.63 $3,168.52 $3,326.94 $3,493.29
8" $3,233.81 $6,499.52 $6,824.49 $7,165.72 $7,524.00
10" $5,081.71 $9,749.28 $10,236.74 $10,748.58 $11,286.01 Zone 7 Variable Charge $3.66 $2.73 $2.86 $3.01 $3.16
Recycled Water Rates – City Rates
8 Recycled Water Rates Current Rates Effective
1/1/2026
Effective
1/1/2027
Effective
1/1/2028
Effective
1/1/2029
Bi-Monthly Fixed Charges (Recycled Water)
5/8" $5.53 $10.48 $12.06 $13.03 $14.08
3/4" $6.59 $12.32 $14.17 $15.31 $16.54
1" $9.25 $16.01 $18.42 $19.90 $21.50
1 1/2" $16.14 $25.21 $29.00 $31.32 $33.83
2" $20.39 $36.25 $41.69 $45.03 $48.64
3" $51.16 $71.22 $81.91 $88.47 $95.55
4" $87.23 $122.76 $141.18 $152.48 $164.68
6" $151.96 $246.06 $282.97 $305.61 $330.06
8" $374.78 $522.13 $600.45 $648.49 $700.37
10" $586.99 $779.79 $896.76 $968.51 $1,046.00
Variable Charge ($/ccf) $4.81 $5.23 $6.02 $6.51 $7.04
7 8

5/21/2025
Drought Rates
Drought Rate Methodology
• What are Drought Rates?
• Drought rates are temporary surcharges applied on top of regular water rates during water shortage emergencies
• Based on City’s Water Shortage Contingency Plan (Stages 1-6) • Incorporates the following components: 1) variable charge revenue loss from reduced usage and 2) variable cost savings from purchasing less Zone 7 water • Drought Rate Design
• Drought rates are designed to maintain the City’s financial position during drought • Higher fixed charges on regular water rates = lower drought rates • Current policy includes a 10 ccf usage allotment that is not charged a drought rate 10 9
10

5/21/2025
Drought Rate Implementation
• Drought Rate Implementation
• City declares a water shortage emergency, then takes action to implement drought rates • The rates shown in this presentation are the maximum that the City can elect to implement in each stage
• Drought rates are one of many tools that the City can use to respond to droughts • Options for Drought Response
• Implementing a full or partial drought rate
• Reducing CIP spending
• Using reserve funds
• A combination of any of the above
11 Drought Rate Allotment Policy
• Option 1: Maintain drought rate allotment policy
• Current policy includes 10 ccf allotment for all customers • Due to water conservation and changes to usage characteristics, proposed allotment is 8 ccf • Benefits: Recognizes that low water users have less ability to reduce water usage during drought compared to high water users, responds to customer concerns • Challenges: Increases unit cost for drought rates for all usage over 8 ccf • Option 2: Remove drought usage allotment for all customers • All units of water usage during drought would be charged a drought rate • Benefits: Slightly increases financial stability by collecting drought revenues on all usage • Challenges: Increases financial impact to low water users 12 11
12

5/21/2025
Proposed Drought Rates – Option 1
13 Drought Rates Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Stage 6 Usage Reduction 10% 20% 30% 40% 50% 60%
Current Drought Rates (10 ccf allotment)
Single Family
Tier 1 $0.77 $1.92 $3.54 $6.34 $11.91 $17.90
Tier 2 $0.90 $2.24 $4.14 $7.40 $13.90 $20.90
Tier 3 $0.98 $2.43 $4.48 $8.01 $15.05 $22.61
Tier 4 $1.01 $2.52 $4.67 $8.36 $15.70 $23.60
Multi-Family $0.77 $1.91 $3.53 $6.32 $11.87 $17.82
Commercial $0.78 $1.96 $3.62 $6.46 $12.15 $18.26
Industrial $0.78 $1.96 $3.62 $6.46 $12.15 $18.26
Irrigation $0.90 $2.25 $4.16 $7.42 $13.95 $20.96
Proposed Drought Rates (8 ccf allotment)
Year 1 $0.44 $1.02 $1.84 $3.08 $5.18 $9.54
Year 2 $0.51 $1.18 $2.12 $3.55 $5.96 $10.98
Year 3 $0.56 $1.28 $2.29 $3.84 $6.44 $11.86
Year 4 $0.61 $1.39 $2.48 $4.15 $6.96 $12.81
Proposed Drought Rates – Option 2
14 Drought Rates Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Stage 6 Usage Reduction 10% 20% 30% 40% 50% 60%
Current Drought Rates (10 ccf allotment)
Single Family
Tier 1 $0.77 $1.92 $3.54 $6.34 $11.91 $17.90
Tier 2 $0.90 $2.24 $4.14 $7.40 $13.90 $20.90
Tier 3 $0.98 $2.43 $4.48 $8.01 $15.05 $22.61
Tier 4 $1.01 $2.52 $4.67 $8.36 $15.70 $23.60
Multi-Family $0.77 $1.91 $3.53 $6.32 $11.87 $17.82
Commercial $0.78 $1.96 $3.62 $6.46 $12.15 $18.26
Industrial $0.78 $1.96 $3.62 $6.46 $12.15 $18.26
Irrigation $0.90 $2.25 $4.16 $7.42 $13.95 $20.96
Proposed Drought Rates (0 ccf allotment)
Year 1 $0.34 $0.75 $1.28 $1.99 $2.98 $4.46
Year 2 $0.40 $0.87 $1.48 $2.29 $3.43 $5.13
Year 3 $0.44 $0.94 $1.60 $2.48 $3.71 $5.55
Year 4 $0.48 $1.02 $1.73 $2.68 $4.01 $6.00
13 14

5/21/2025
Drought Impacts (Year 1):

Stage 2, Low Use (10 ccf)
15 Option 1: 8 ccf Allotment Option 2: No Allotment
Drought Impacts (Year 1):

Stage 2, Average Use (24 ccf)
16 Option 1: 8 ccf Allotment Option 2: No Allotment
15 16

5/21/2025
Drought Impacts (Year 1):

Stage 2, Very High Use (70 ccf)
17 Option 1: 8 ccf Allotment Option 2: No Allotment
Drought Rates
• Staff Recommendation:
• Maintain drought usage allotment policy (Option 1)
• Updated drought usage allotment is 8 ccf per bi-monthly bill • Policy Decision:
• Accept the staff recommendations regarding drought rates 18 17
18

5/21/2025
Connection Fees
Connection Fee Methodology
• Connection Fee Overview
• Connection fees are one-time charges for new development to connect to the system • Financial equity between existing and new customers – “growth pays for growth” • Rates vs. Connection Fees
• Water rates are regulated under Prop 218; connection fees are under Prop 26 • Water rates pay for costs of operating and maintaining system for existing customers • Connection fees pay for costs of expanding the system to serve new customers 20 19
20

5/21/2025
Connection Fee Methodology
21 Equity Buy-In
Method
• Agencies with
additional capacity
in existing system
• New customers
“buy in” to system
that existing
customers built
Incremental Cost
Method
• Agencies that are
adding capacity to
future system
• New customers pay
for capital projects
that are built to
serve growth
Hybrid
Method
• Agencies that have
both existing and
future capacity
• New customers pay
a portion to buy in
and a portion to
build new capacity
WRE recommends the Hybrid Method for the City of Pleasanton Connection Fee Methodology
• Buy-In Component
• Determine asset value of existing water system (based on RCLD* methodology) and units of service related to existing customers (equivalent meters) • Revenues from buy-in component are transferred to water enterprise fund to benefit existing customers (can be used to offset future rates) • Incremental Component
• Determine cost of expanding future system and units of service that the expansion projects can accommodate
• Revenues from incremental component can only be used to fund expansion-related CIP that benefits future growth
22 *Replacement Cost Less Depreciation
21 22

5/21/2025
Proposed Water Connection Fees
23 System Value Current System Future System Total
Buy-In $102,339,948 $102,339,948
Incremental - Water Supply, Transmission & Quality $6,777,458 $6,777,458 Incremental - Water Distribution Piping $3,380,000 $3,380,000 Incremental - Water Facilities $13,016,200 $13,016,200
Total $102,339,948 $23,173,658 $125,513,606
Unit Cost Current System Future System Total
Existing System Value (Buy-In) $102,339,948 $102,339,948 Future User CIP (Incremental) $23,173,658 $23,173,658
Equivalent Meters Served 41,880 8,205 50,085
Connection Fee $2,444 $2,825 $5,269
Connection Fee Comparison
24 23
24

5/21/2025
Connection Fees
• Staff Recommendation:
• Include Buy-In Component to connection fees
• Update Incremental Component for connection fees
• Increase connection fees by CPI each year
• Policy Decision:
• Accept the staff recommendations regarding water connection fees 25 Next Steps and Schedule
Upcoming Meetings and Milestones
• City Council meeting: June 3 (final water rates, drought rates, and connection fees) • City Council meeting: July 15 (approve Proposition 218 notice, accept rate study report) • Last day to mail out notices: July 30
• City Council meeting: October 7 (Public Hearing to adopt water rates) • New rates effective: January 1, 2026
26 25
26

5/21/2025
Contact Information
Sanjay Gaur
Founder / President
[email protected]
Nancy Phan
Principal Consultant
[email protected]
27 27

Item #19

CITY COUNCIL AGENDA REPORT

June 3, 2025
Human Resources

TITLE: HOLD A PUBLIC HEARING AND RECEIVE AN INFORMATIONAL REPORT ON THE CITY’S VACANCY RATE, RECRUITMENT, AND RETENTION EFFORTS, IN COMPLIANCE WITH ASSEMBLY BILL 2561/GOVERNMENT CODE SECTION 3502.3

SUMMARY
On September 22, 2024, Governor Newsom signed Assembly Bill 2561 (AB 2561) which amended the Meyers-Milias-Brown Act (MMBA) and requires that all public agencies hold a public hearing each fiscal year to address the status of their vacancy rate, recruitment, and retention efforts.

RECOMMENDATION
Hold a public hearing and receive an informational report on the City’s vacancy rate, recruitment, and retention efforts, in compliance with Assembly Bill 2561/Government Code Section 3502.3.

BACKGROUND
Effective January 1, 2025, AB 2561 adds Government Code Section 3502.3 to the Meyers- Milias-Brown Act, requiring a presentation on the status of vacancies, recruitment, and retention efforts during a public hearing before the city council each fiscal year, and prior to the adoption of the final budget. This bill was introduced to address the issue of job vacancies in local government, which adversely affects the delivery of public services and employee workload. Among the requirements, the bill mandates that public agencies identify any changes to policies, procedures, and recruitment activities that may lead to obstacles in the hiring process. Additional reporting requirements are mandated if vacancy rates exceed 20 percent. Finally, each bargaining unit may make a presentation during the same public hearing at which the City makes its annual vacancies presentation.

DISCUSSION
At the time of this report, the percentage of vacancies for regular, full-time positions is 5 percent. To address vacancies, the City continuously evaluates policies, procedures, and recruitment activities to mitigate potential obstacles in the hiring process. For example, one obstacle previously identified was a protracted onboarding process; to address this concern, the CIty has streamlined the background process for non-public safety positions. Another obstacle identified was challenges related to recruiting for police positions due to a highly competitive environment; as a result, Human Resources and Police Department staff collaborated on identifying opportunities to streamline the hiring process, such as immediate outreach and implementation of monthly interviews with the Police command staff. In addition, Human Resources Department staff has identified an opportunity to further streamline the hiring process by transitioning to electronic workflows and reducing reliance on paper-based processes; this transition is planned to begin in the coming fiscal year.

For calendar year 2024, the City’s average vacancy rate for regular, full-time positions was 5 percent. The table below shows a breakdown of the percentage of vacancies (regular full-time positions) at the end of each month:

As of December 31, 2024, the City’s bargaining units were all under the 20% vacancy rate threshold as summarized below:

The Human Resources Department notified the four represented bargaining units that they have the opportunity to make a presentation during this public hearing in compliance with Gov.

Code § 3502.3 (b).

EQUITY AND SUSTAINABILITY
Annual vacancy reporting supports the City’s values of inclusion and transparency.

OUTREACH
No outreach was conducted, as this item is a routine matter of City business.

STRATEGIC PLAN ALIGNMENT
This informational report supports the ONE Pleasanton strategic plan goal of Optimizing Our Organization.

FISCAL IMPACT
There is no fiscal impact associated with this action.

Prepared by: Submitted by: Approved by:

Sandra Williams,
Management Analyst
Xaviera Scoggins, Director of Human
Resources & Labor Relations

Gerry Beaudin, City
Manager

Attachments:

1. Presentation

6/3/2025
1 AB 2561 – Annual Vacancy Rate, Recruitment, and Retention Efforts Informational ReportCity Council Meeting – June 3, 2025 AB 2561 (Government Code Section 3502.3)Assembly Bill 2561 (Gov. Code § 3502.3) was introduced to address the issue of job vacancies in local government, which may adversely affect the delivery of public services and employee workload. Among other requirements, the bill mandates that public agencies:•Conduct a public hearing to present the status of vacancies, recruitment, and retention efforts before the agency’s governing body at least once per fiscal year, prior to the adoption of the final budget.•Identify any necessary changes to policies, procedures, and recruitment activities that may hinder the hiring process. The bill was enacted into law effective January 1, 2025, and is codified as Government Code Section 3502.3. 1 2

6/3/2025
2 Workforce Information•Total Authorized Full-Time Positions* •January 1, 2024: 497.38•July 1, 2024: 498.38*Counts each position in the Livermore-Pleasanton Fire Department (LPFD) as a whole position (128 FTE). City of Pleasanton is budgeted for 0.5 of each FTE position (Livermore 64 FTE, Pleasanton 64 FTE).•Services Rendered by Budgeted/Authorized Workforce:• City Attorney/Risk Management• City Manager’s Office /Office of the City Clerk• Community Development• Finance• Fire • Human Resources• Information Technology• Library and Recreation• Police• Public Works Hiring Obstacles & SolutionsCity staff reviewed applicable policies, procedures, and recruitment activities to identify any potential obstacles impacting the City’s hiring process.Potential Obstacles:•Lengthy Pre-Employment Background Process•Candidate Engagement and Follow-up Communication with Applicants•Administrative processes that don’t fully leverage the technology of our application tracking system (NeoGov)Solutions: •Partnered with Police to streamline the pre-employment interview process•Increased direct communication with applicants earlier and throughout the recruitment process•Streamlined the background process for non-safety employees, also resulting in cost reductions•Planned efforts to update administrative procedures to better use the available technology 3 4

6/3/2025
3 Vacancy Data By Month for Calendar Year 2024JuneMayAprMarFebJan2024242423374137Vacancies (Beginning of the Month)425355Separations1241791New Hires441030Promotions497.38497.38497.38497.38497.38497.38Full-time Employees (FTEs)*272424233741Vacancies (End of the Month)5%5%5%5%7%8%% of Vacancies* Counts each position in the Livermore-Pleasanton Fire Department as a whole position (128 FTEs). City of Pleasanton is budgeted for 0.5 of each FTE position (Livermore 64 FTE, Pleasanton 64 FTE).

Vacancy Data By Month for Calendar Year 2024DecNovOctSepAugJuly2024232223242928Vacancies (Beginning of the Month)631138Separations222287New Hires122181Promotions498.38498.38498.38498.38498.38498.38Full-time Employees (FTEs)*272322232429Vacancies (End of the Month)5%5%4%5%5%6%% of Vacancies* Counts each position in the Livermore-Pleasanton Fire Department as a whole position (128 FTEs). City of Pleasanton is budgeted for 0.5 of each FTE position (Livermore 64 FTE, Pleasanton 64 FTE). 5 6

6/3/2025
4 Vacancy InformationPleasanton City Employees Association (PCEA), AFSCME Local 955231.75 13.0 6%Pleasanton Police Officers' Association (POA)75.00 6.0 8%International Association of Firefighters (IAFF), Local 1974108.00 1.0 1%IAFF, Local 1974, Battalion Chief's Unit7.00 0.0 0%Unrepresented-Management/Confidential74.63 7.0 9%* Counts each position in the Livermore-Pleasanton Fire Department (128 FTEs)Vacancy Rates by Bargaining Unit (December 31, 2024)Bargaining Unit*Full-timePositionsVacancies Vacancy Rates Retention InformationVacanciesPercentage of FTEsNumber of VacanciesVacancies Created in 20240.20%1Newly Budgeted FTEs 20245.42%27Internal PromotionTurnoverPercentage of Total Separations Number of SeparationsVacancies created in 202445.5%21Retirement9%4Involuntary Separation 45.5%21Voluntary Separation/Resignation100%46Total Separations 7 8

6/3/2025
5 Retention StrategiesThe City will develop and refine the following to improve retention:•Organizational Training•Professional Development/Succession Plan•Expand Employee Engagement Programs/Employee Communication•Recruitment and onboarding process Thank you9
10