ATTACHMENT 4
fees are hereby amended as set forth in Exhibit A, attached hereto and incorporated herein by reference.
SECTION 2. The City of Pleasanton approves the pass-through of Zone 7 Water Agency wholesale treated water charges to its customers ending December 31, 2029 SECTION 3. The water rates, including the drought/water shortage rates, are adjusted for the next four (4) years ending December 31, 2029, based on the applicable rate tables in the 2025 Water Rate Study report by WRE and Proposition 218 Public Hearing Notice. The Master Fee Schedule will be amended annually.
SECTION 4. The water connection fees are adjusted beginning January 1, 2026 based on the applicable table in the 2025 Water Rate Study Report by WRE and will be annually increased by the consumer price index. The Master Fee Schedule will be amended annually.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Pleasanton at a regular meeting held on October 7, 2025.
I, Jocelyn Kwong, City Clerk of the City of Pleasanton, California, certify that the foregoing resolution was adopted by the City Council at a regular meeting held on the 7th day of October 2025 by the following vote:
Ayes:
Noes:
Absent:
Abstain:
Jocelyn Kwong, City Clerk
APPROVED AS TO FORM:
Daniel G. Sodergren, City Attorney
ATTACHMENT 4
EXHIBIT A
MASTER FEE SCHEDULE AMENDMENTS FOR WATER RATES AND CONNECTION FEES A. Water Rates & Charges
Consumption Charges (bi-monthly) PMC 14.04.070 1 CCF = 100 cubic feet = 748 gallons Eff. 01.01.2026 Potable Water Pleasanton Zone 7
(1) Total per CCF
Single Family Individually Metered $2.97 $2.73 $5.70
Multifamily $2.97 $2.73 $5.70
Commercial/Industrial $2.97 $2.73 $5.70
Potable Irrigation $2.97 $2.73 $5.70
Recycled Water Total per CCF
Recycled Irrigation $5.23
Fixed Charges (bi-monthly) Eff. 01.01.2026
Potable Water Meter
Size Pleasanton Zone 7
(1) Total
Potable Water
Meter Size Pleasanton Zone 7
(1) Total
5/8 " $11.90 $46.43 $58.33 3" $96.12 $812.44 $908.56
3/4 " $14.46 $69.64 $84.10 4" $167.58 $1,462.39 $1,629.97 1 " $19.56 $116.06 $135.62 6" $338.56 $3,017.63 $3,356.19
1.5 " $32.32 $232.13 $264.45 8" $721.36 $6,499.52 $7,220.88 2 " $47.64 $371.40 $419.04 10" $1,078.63 $9,749.28 $10,827.91 Recycled Water Meter
Size Total
Recycled Water
Meter Size Total
5/8 " $10.48 3" $71.22
3/4 " $12.32 4" $122.76
1 " $16.01 6" $246.06
1.5 " $25.21 8" $522.13
2 " $36.25 10" $779.79
(1) - Zone 7 rates are a pass-through and are subject to increase based on the actual rates set by Zone 7. Rate payers will be notified 30 days prior to any increase taking effect.
ATTACHMENT 4
C. Water Drought / Water Shortage Rates (2) Eff. 01.01.2026 Drought/water shortage rates are added to the current rates shown in Section A, at the time the drought state is declared Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Stage 6
Single Family $0.44 $1.02 $1.84 $3.08 $5.18 $9.54
Multi-Family $0.44 $1.02 $1.84 $3.08 $5.18 $9.54
Commercial/Industrial $0.44 $1.02 $1.84 $3.08 $5.18 $9.54 Potable Irrigation $0.44 $1.02 $1.84 $3.08 $5.18 $9.54
(2) - Rate payers will be notified 30 days prior to any increase taking effect. The first 8 CCFs are exempt from the drought water shortage rates.
E. Water Connection Fees - City Eff. 01.01.2026
Meter Size Meter Capacity
(gpm) Meter Ratio Meter Connection Fee
5/8" 22 1.0 $5,269
3/4" 32 1.5 $7,664
1" 55 2.5 $13,173
1-1/2" 100 4.5 $23,950
2" 200 9.1 $47,900
3" 500 22.7 $119,750
4" 1250 56.8 $299,375
6" 2500 113.6 $598,750
8" 3500 159.1 $838,250
Amounts DO NOT include water meter installation fees, which are revised periodically based on current costs for labor & materials as authorized in Section B "Water Meter & Installation Fees". 10" 5500 250.0 $1,317,250
For any larger service connection, the City Engineer or his duly appointed representative will determine the charge; or a battery of meters may be used at the City Engineer's option.
Any change in use or addition requiring greater capacity will require the payment of additional fees at the rates established herein as a condition of continued service.
ATTACHMENT 5
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANTON AMENDING THE MASTER FEE SCHEDULE FOR SEWER RATES EFFECTIVE JANUARY 1, 2026 WHEREAS, pursuant to sound fiscal management practices the fees, rates and charges for providing sanitary sewer services must provide for the recovery of all local and regional costs incurred by the City, Dublin San Ramon Services District (DSRSD), and City of Livermore in providing such sewerage services, including capital, operational, maintenance, administration, maintenance, monitoring and replacements costs pursuant to Municipal Code§ 15.20.30; and WHEREAS, fees, rates, and charges are to be increased or decreased annually, on an automatic basis, without requirement for further City Council action based on: (a) the change in the Consumer Price Index (CPI) as applied to local sewer rates and charges imposed by the City, beginning January 1, 2026, to June 30, 2026, for the first year, and then July 1, 2026, for the next fiscal year ending June 30, 2027, upon notice provided to customers as required by law; and
WHEREAS, the City does not own or operate a wastewater treatment plant; instead, a majority of the City’s wastewater is treated by DSRSD, and the remaining area is treated by the City of Livermore; and,
WHEREAS, Government Code §53756 (AB 3030 [2008]) permits the City to automatically pass-through increases or decreases in the DSRSD and City of Livermore wholesale regional sewer treatment charges; and
WHEREAS, whenever DSRSD or the City of Livermore increase their respective regional sewer rates that apply to Pleasanton customers, the City will notify its customers 30 days prior to such automatic adjustments taking effect; and
WHEREAS, as provided by Pleasanton Municipal Code section 15.20.180 sewer rates and charges shall be specified in the Master Fee Schedule.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PLEASANTON DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. The Master Fee Schedule provisions regarding sewer rates, fees, and charges are hereby amended as set forth in Exhibit A, attached hereto and incorporated herein by reference.
SECTION 2. That the City of Pleasanton approve the pass-through of DSRSD and the City of Livermore regional sewer rates to its customers.
SECTION 3. That the pass-through of DSRSD and the City of Livermore regional sewer rates to its customers is effective immediately and shall end on the next effective date for the pass-through as approved by Council action.
SECTION 4. This resolution shall become effective upon its passage and adoption and shall be operative on October 7, 2025.
ATTACHMENT 5
SECTION 5. The City Clerk shall certify to the passage of this resolution and enter it into the book of original resolutions.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Pleasanton at a meeting held on October 7, 2025.
I, Jocelyn Kwong, City Clerk of the City of Pleasanton, California, certify that the foregoing resolution was adopted by the City Council at a meeting held on the 7th day of October 2025, by the following vote:
Ayes:
Noes:
Absent:
Abstain:
Jocelyn Kwong, City Clerk
APPROVED AS TO FORM:
Daniel G. Sodergren, City Attorney
EXHIBIT A
CITY OF PLEASANTON
MASTER FEE SCHEDULE
X. SEWER RATES, FEES, AND CHARGES
A. Sewer Rates & Charges Eff 01.01.2026
User Charges - Bimonthly
Residential (rate per dwelling unit): Local (1)
RegionalDSRSD (2) Total
Single-Family/Townhome 30.77 $61.58 $92.35
Condominium 21.13 $46.69 $67.82
Multifamily/Secondary Unit 16.09 $46.69 $62.78
RegionalLivermore (3) Total
Single-Family - Ruby Hill 27.69 134.98 $162.67
Commercial: Billing Units Pleasanton (1)
- All commercial accounts are billed based on water consumption which varies by season and type of usage. The regional commercial rates shall be equal to the DSRSD or City of Livermore cost for said charges determined based on regional provider for said account. Ruby Hill non-residential customers, please contact Public Works for rate - Commercial customers are subject to a minimum bi-monthly charge equivalent to the charge for a multiple-family residential customer
Auto Steam Cleaning up to 10 Ccf
each add'l Ccf
$16.09
$1.73
Bakeries up to 10 Ccf
each add'l Ccf
$16.09
$1.72
Commercial Laundries up to 10 Ccf
each add'l Ccf
$16.09
$1.73
Groceries w/Garbage Disposals up to 10 Ccf
each add'l Ccf
$16.09
$1.66
Mortuaries up to 8 Ccf
each add'l Ccf
$16.09
$2.02
Restaurants (Fast Food) up to 10 Ccf
each add'l Ccf
$16.09
$1.62
Restaurants (Full Service) up to 10 Ccf
each add'l Ccf
$16.09
$1.62
All Other up to 11 Ccf
each add'l Ccf
$16.09
$1.46
Instituational:
Schools (sub-metered) Ccf $1.41
Schools (not sub-metered) Ccf $0.92
All Other Ccf $1.46
9/19/2025
City of Pleasanton
Public Hearing: Adopt Resolutions to Amend the Master Fee Schedule for Water Rates & Connection Fees and Sewer Rates Effective January 1, 2026 October 7, 2025
1 Agenda
• Overview of Rate Study Process
• Rate Study Challenges
• How Water Rates Benefit the Community
• Proposed Water Rates and Connection Fees
• 2025 Water Rate Study Report
• Proposition 218 Notice
• Recommended Next Steps
2 1
2
9/19/2025
Overview of Rate Study Process
3 Rate Study Challenges
Financial Challenges
• Develop funding plan for long-term Water System Management Plan costs (“Enhance” scenario includes $73 million of CIP over 5 years with $35 million of new debt) Defensibility Challenges
• Adjust water rate structure based on recent court cases to prove cost justification, collapse all tiers and customer classes – uniform rate structure Rate Structure Challenges
• Recover 100% of Zone 7 fixed costs from Zone 7 fixed meter charges to enhance financial resiliency
4 3
4
9/19/2025
How Water Rates Benefit the Community
Safe and Sustainable Water Supply
• Secure cost-effective local water supply source in the future by investing in local groundwater well improvements
Infrastructure Reliability
• Enhance reliability of critical infrastructure, reduce risk of future service level interruptions due to asset failure
Rate Structure Equitability
• Improve defensibility of rate structure and equity between customers – all customers are charged the same rates
5 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
9/19/2025
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
Water Rates – Combined
8 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 $7.66 7 8
9/19/2025
Customer Impacts
(Water, Single Family, 5/8” Meter)
9 Usage Level Usage (ccf) Current Bill Proposed Bill Difference ($) Difference (%) Very Low Usage (10th percentile) 5 $54.76 $86.83 $32.07 58.6% Low Usage (30th percentile) 10 $85.51 $115.33 $29.82 34.9% Median Usage (50th percentile) 16 $122.41 $149.53 $27.12 22.2% Average Usage 24 $176.05 $195.13 $19.08 10.8%
High Usage (75th percentile) 28 $205.09 $217.93 $12.84 6.3% Very High Usage (95th percentile) 70 $533.91 $457.33 ($76.58) -14.3% Water Bill Comparison (Low Usage)
• Single Family customer
with 5/8” meter, using 10
ccf of water per bill
• Pleasanton, Livermore,
and DSRSD – all three
agencies purchase water
from Zone 7 and have
similar rate structures
• Proposed bills for
Pleasanton are the
lowest
10 9
10
9/19/2025
Water Bill Comparison (Average Usage)
• Single Family customer
with 5/8” meter, using 24
ccf of water per bill
• Pleasanton, Livermore,
and DSRSD – all three
agencies purchase water
from Zone 7 and have
similar rate structures
• Proposed bills for
Pleasanton are the
lowest
11 Water Bill Comparison (Very High Usage)
• Single Family customer
with 5/8” meter, using 24
ccf of water per bill
• Pleasanton, Livermore,
and DSRSD – all three
agencies purchase water
from Zone 7 and have
similar rate structures
• Proposed bills for
Pleasanton are in the
middle
12 11
12
9/19/2025
Recycled Water Rates – City Rates
13 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 $7.04
Customer Impacts
(Recycled Water, 1-1/2” Meter)
14 Usage Level Usage (ccf) Current Bill Proposed Bill Difference ($) Difference (%) Very Low Usage (10th percentile) 2 $25.76 $35.67 $9.91 38.5% Low Usage (30th percentile) 49 $256.08 $281.48 $25.40 9.9% Median Usage (50th percentile) 173 $883.29 $930.00 $46.71 5.3% Average Usage 560 $2,780.83 $2,954.01 $173.18 6.2%
High Usage (75th percentile) 493 $2,523.29 $2,603.60 $80.31 3.2% Very High Usage (95th percentile) 1,997 $9,980.35 $10,469.52 $489.17 4.9% 13 14
9/19/2025
Drought Rates
• 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) • Drought Rate Design
• Drought rates are designed to maintain the City’s financial position during each stage • City’s drought rates include a variable surcharge per ccf of water usage, with an 8 ccf allotment that are not charged the drought rate (available for all customers) 15 Proposed Drought Rates
16 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
15 16
9/19/2025
Customer Impacts
(Drought Rates Stages 2 & 3, Single Family, 5/8” Meter, 24 ccf) 17 Stage 2 (20% Reduction) Stage 3 (30% Reduction)
Water Connection Fees
• What are Connection Fees?
• 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 18 17
18
9/19/2025
Proposed Water Connection Fees
19 Meter Size Capacity (gpm) Meter Ratio Buy-In Fee
Incremental
Fee
Total Fee
5/8" 22 1.00 $2,444 $2,825 $5,269
3/4" 32 1.45 $3,555 $4,109 $7,664
1" 55 2.50 $6,110 $7,063 $13,173
1 - 1/2" 100 4.55 $11,109 $12,841 $23,950
2" 200 9.09 $22,218 $25,682 $47,900
3" 500 22.73 $55,545 $64,205 $119,750
4" 1,250 56.82 $138,864 $160,511 $299,375
6" 2,500 113.64 $277,727 $321,023 $598,750
8" 3,500 159.09 $388,818 $449,432 $838,250
10" 5,500 250.00 $611,000 $706,250 $1,317,250
Water Connection Fee Comparison
20 19
20
9/19/2025
2025 Water Rate Study Report
Why is this Important?
• Proposition 218 requires that agencies show the
“nexus” between the cost of providing water service and the rates that are charged to customers
• The rate study report is how we “show our work” and
prove the nexus
• All detailed sections walk through every calculation and assumption used to determine the water rates and
connection fees
• The report is the City’s defense in case of legal
challenges
21 Proposition 218 Notice
22 • Mailed to Customers 8/1/25
(45+days prior to public hearing)
• Includes proposed sewer rate
CPI increase of 2.6% effective
1/1/26
• References City
PleasantonWater.com/Rates
website
21 22
9/19/2025
Recommended Next Steps
23 • City Council hold Public Hearing
• City Council consider written protests and staff written responses (valid written protests can be received up to the end of the public comment period of the hearing and staff written responses must be prepared prior to City Council consideration of adoption)
• Adopt resolutions to amend the Master Fee schedule for water and sewer rates effective January 1, 2026
(requires receipt of less than a majority of valid written protests) Contact Information
Sanjay Gaur
Founder / President
[email protected]
Nancy Phan
Principal Consultant
[email protected]
24 23
24