Agenda packet — Pleasanton City Council, June 2, 2026 (part 3 of 5)

Page 2 of 3 ends

To ensure on-call services remain available, staff advertised a Request for Statements of Qualifications (SOQ) in December 2025. The SOQ described the type of services needed, the on-call nature of the agreements, the proposed agreement duration, the task authorization process, and the not-to-exceed budget for each agreement. Through the review and interview process, the four selected consultants demonstrated the qualifications, responsiveness, and capacity necessary to provide these services.

DISCUSSION
The Engineering Division of the Public Works Department is responsible for advancing numerous projects included in the adopted Capital Improvement Program (CIP) and for responding to subdivision applications and other land development activity. Although the City employs highly skilled engineers and technical staff, consultant support is periodically needed to supplement internal resources and address workload fluctuations.

Using on-call consultants allows the City to respond more efficiently than procuring services on a project-by-project basis. With consultants already under contract, staff can assign tasks more quickly, maintain project schedules, and obtain professional services when needed.

Because workload demands vary over time, maintaining agreements with four on-call consultants provides flexibility to assign work based on consultant availability, expertise, and project schedule needs. The consultants understand that the agreements do not guarantee any minimum amount of work and that the full not-to-exceed amount may not be expended during the agreement term. Work will be assigned through task authorization based on department needs.

Staff recommends the City Council authorize the City Manager to enter into Professional Services Agreements with Bennett Engineering Services, CSG Consultants, Inc., Sanbell-Bay Area, and Wilsey Ham. Each agreement would have a not-to-exceed amount of $500,000 over the initial three-year term, with the option to extend for up to two additional one-year terms.

EQUITY AND SUSTAINABILITY
Not applicable, as this is a routine matter of City business.

OUTREACH
Not applicable, as this is a routine matter of City business.

STRATEGIC PLAN ALIGNMENT
Approval of this action advances the citywide ONE Pleasanton Strategic Goals of Investing in our Environment, Strategy 1 - Implementation of the Capital Improvement Program and Building a Community where Everyone Belongs, Strategy 9 - Advance the East Pleasanton Specific Plan.

FISCAL IMPACT
Approval of the proposed agreements does not require additional funding. Funding for consultant services is budgeted under each individual CIP project approved by the City Council or funded through developer-paid fees. Specific account coding from the adopted Operating or Capital Improvement Program budgets will be assigned when individual task authorizations are

Page 303 of 632 ends

Page 3 of 3 ends

issued.

Prepared by: Submitted by: Approved by:

Michael Stella, City
Engineer
Siew-Chin Yeong, Director of Public
Works

Interim City Manager

Attachments:

1. Professional Services Agreement with Bennett Engineering Services

2. Professional Services Agreement with CSG Consultants,, Inc

3. Professional Services Agreement with Sanbell-Bay Area

4. Professional Services Agreement with Wilsey Ham

Page 304 of 632 ends

 Exhibit A
 Certificate(s) of Insurance
 Professional Liability
Attachment 1

DESIGN PROFESSIONAL SERVICES AGREEMENT

THIS DESIGN PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is entered into July 1, 2026, between the City of Pleasanton, a municipal corporation ("City"), and Bennett Engineering Services whose address is 2300 First Street, Suite 240, Livermore, CA 94550, and telephone number is (510) 566-2755 ("Consultant").

RECITALS
A. Consultant is qualified and experienced in providing on-call civil engineering services for the purposes specified in this Agreement.

B. City finds it necessary and advisable to use the services of Consultant for the purposes provided in this Agreement.

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

1. Consultant's Services. Consultant shall provide on-call civil engineering services for the City of Pleasanton as requested by the Public Works Department, Engineering Division, pursuant to individual Work Authorizations. This Agreement does not obligate the City to utilize Consultant exclusively for these services, and the City reserves the right to select other consultants for these services based on City need. City guarantees no level of work to be directed.

2. City Assistance. In order to assist Consultant in this work, City shall provide, if necessary, archive drawings and reports, related to existing City’s facilities, aerial photography, City’s standard specifications and design guides, answering non-technical questions during bid period, reviewing all consultant’s deliverables and providing comments in a timely manner, AutoCAD files for City’s title block and standards and record drawings related to the City’s existing utilities.

3. Staff. Consultant shall assign Carlton Allen, III, PE to serve as project manager, who may not be replaced without written consent of City.

4. Term. Time is of the essence. Consultant shall begin work July 1, 2026. The work as described in Exhibit A, Scope of Work, shall be completed by June 30, 2029.

5. Compensation. For the as-needed services to be rendered, City shall pay consultant on a time- and-materials basis for a not-to-exceed total of $500,000 for the term of the Agreement.

Page 305 of 632 ends

As for each work authorization, compensation for services and reimbursement for costs shall not exceed the amount set in each executed Work Authorization unless the parties agree pursuant to Section 8, below.

For the services to be rendered, City shall pay Consultant on a time and material basis based on hourly rates with annual adjustment capped at 4% annually as described more particularly in Exhibit A, which is attached and incorporated to the extent consistent with this Agreement.

Annual adjustments will be based upon the CPI-U for the San Francisco Area as issued by the US Bureau of Labor Statistics and submitted prior to the end of the fiscal year for approval.

Payment shall be made on a monthly basis upon receipt and approval of Consultant's invoice.

a. Invoices submitted to City must contain a brief description of work performed, percentage of work completed, percentage of Agreement time used, percentage of Agreement amount expended and City reference number . Payment shall be made within thirty (30) days of receipt of Consultant's invoice.

b. Upon completion of work and acceptance by City, Consultant shall have sixty (60) days in which to submit final invoicing for payment. An extension may be granted by City upon receiving a written request thirty (30) days in advance of said time limitation. The City shall have no obligation or liability to pay any invoice for work performed which the Consultant fails or neglects to submit within sixty (60) days, or any extension thereof granted by the City, after the work is accepted by the City.

6. Sufficiency of Consultant's Work.

a. Services shall be performed by Consultant in accordance with generally accepted high professional practices and principles and in a manner consistent with a high level of care and skill ordinarily exercised under similar conditions by members of Consultant’s profession currently practicing in California. By delivery of completed work, Consultant certifies that the work conforms to the requirements of this Agreement and all applicable federal, state and local laws and a high professional standard of care in California.

b. Consultant is responsible for making an independent evaluation and judgment of all conditions affecting performance of the work, including without limitation site conditions, existing facilities, seismic, geologic, soils, hydrologic, geographic, climatic conditions, applicable federal, state, and local laws and regulations, and all other contingencies or design considerations. Data, calculations, opinions, reports, investigations, and other similar information provided by the City relating to site, local, or other conditions is not warranted or guaranteed, either expressly or implied, by the City.

c. Consultant’s responsibilities under this section shall not be delegated. Consultant shall be responsible to the City for acts, errors, or omissions of Consultant’s subconsultants.

d. Whenever the scope of work requires or permits review, approval, conditional approval or disapproval by the City, it is understood that such review, approval, conditional approval or disapproval is solely for the purposes of administering this Agreement and

Page 306 of 632 ends

determining whether the Consultant is entitled to payment for such work, and not be construed as a waiver of any breach or acceptance by the City of any responsibility, professional or otherwise, for the work, and does not relieve the Consultant of responsibility for complying with the standard of performance or laws, regulations, industry standards, or from liability for damages caused by negligent acts, errors, omissions, noncompliance with high industry standards, or the willful misconduct of Consultant.

7. Ownership of Work. All reports, work data, plans, drawings, specifications, designs, photographs, images, works of authorship and all other documents completed or partially completed by Consultant in the performance of this Agreement (“materials”) shall become the property of City. Consultant agrees that all copyrights which arise from creation of the work pursuant to this Agreement shall be vested in the City, and Consultant waives and relinquishes all claims to copyright or other intellectual property rights in favor of the City. All materials shall be delivered to the City upon completion or termination of the work under this Agreement.

If any materials are lost, damaged or destroyed before final delivery to the City, the Consultant shall replace them at its own expense. Any and all copyrightable subject matter in all materials is hereby assigned to the City and the Consultant agrees to execute any additional documents that may be necessary to evidence such assignment. Consultant shall keep materials confidential and the materials shall not be used for purposes other than performance of services under this Agreement and shall not be disclosed to anyone not connected with these services, unless the City provides prior written consent.

8. Changes. City may request changes in the scope of services to be provided by Consultant.

Any changes and related fees shall be mutually agreed upon between the parties and subject to a written amendment to this Agreement.

9. Consultant's Status. In performing the obligations set forth in this Agreement, Consultant shall have the status of an independent contractor and Consultant shall not be considered to be an employee of the City for any purpose. All persons working for or under the direction of Consultant are its agents and employees and are not agents or employees of City.

10. Labor Code/Prevailing Wages. To the extent applicable, Consultant shall comply with the requirements of the California Labor Code including but not limited to hours of labor, nondiscrimination, payroll records, apprentices, workers' compensation and payment of prevailing wages as determined by Director of the California Department of Industrial Relations. Consultant shall post, at each job site, a copy of the prevailing rate of per diem wages. Consultant 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 subconsultant.

11. Termination of Convenience of City. The City may terminate this Agreement at any time by mailing a notice in writing to Consultant. The Agreement shall then be deemed terminated, and no further work shall be performed by Consultant. If the Agreement is so terminated, the Consultant shall be paid for that percentage of the work actually completed at the time the notice of termination is received.

Page 307 of 632 ends

12. Non-Assignability. The Consultant shall not assign, sublet, or transfer this Agreement or any interest or obligation in the Agreement without the prior written consent of the City, and then only upon such terms and conditions as City may set forth in writing. Consultant shall be solely responsible for reimbursing subconsultants.

13. Indemnity and Hold Harmless. To the fullest extent permitted by law (including, without limitation, California Civil Code §§ 2782, 2782.6 and 2782.8), Consultant shall defend (with legal counsel reasonably acceptable to the City), indemnify, and hold harmless, the City and its officers, agents and employees (collectively “Indemnitees”) from and against any and all claims, loss, cost, damage, injury (including, without limitation, injury to or death of an employee of Consultant or its Subconsultants), expense, and liability of every kind, nature and description (including, without limitation, incidental and consequential damages, court costs, attorneys’ fees, litigation expenses and fees of expert consultants or expert witnesses incurred in connection therewith and costs of investigation) arising from, or alleged to have arisen from, pertain to, or relate to, directly or indirectly, in whole or in part, the negligence, reckless, or willful misconduct of the Consultant, any Subconsultant, anyone directly or indirectly employed by them, or anyone that they control (collectively “Liabilities”) in the performance of its services under this Agreement, regardless of whether the City has reviewed or approved the work or services which has given rise to the claim, loss, cost, damage, injury or liability for damages. This indemnification shall extend for a reasonable period of time after completion of the project as well as during the period of actual performance of services under this Agreement. The City's acceptance of the insurance certificates required under this Agreement does not relieve the Consultant from its obligation under this paragraph. To the extent that there is an obligation to indemnify under this Section 13, Consultant shall be responsible for incidental and consequential damages resulting directly or indirectly, in whole or in part, from Consultant’s negligence, reckless or willful misconduct.

Such obligations to defend, hold harmless and indemnify any Indemnitee shall not apply to the extent such Liabilities are caused by the sole negligence, active negligence or willful misconduct of such Indemnitee. Obligation to defend shall be proportionate as to Consultant’s percentage of fault as provided in California Civil Code § 2782.8.

14. Insurance. During the term of this Agreement, Consultant shall maintain in full force and effect, at its own cost and expense, insurance coverages 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. Commercial 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 insureds under the policy. The policy shall state in writing either on the Certificate of Insurance or attached rider that this insurance will operate as primary insurance for work performed by Consultant and its subconsultants, and that no other insurance effected by City or other named insured will be called on to cover a loss.

Page 308 of 632 ends

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 Consultant's employees, in strict compliance with State laws, including a waiver of subrogation and Employer’s Liability Insurance with limits of at least $1,000,000.

d. Professional Liability Insurance. Professional liability insurance in the amount of $2,000,000.

e. Certificate of Insurance. Consultant 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.

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. These requirements do not apply to Professional Liability.

h. Subconsultants. Consultant shall include all subconsultants as insured under its polices or shall furnish separate certificates and endorsements for each subconsultant. All coverages for subconsultants shall be subject to all of the requirements stated in this Agreement, including but not limited naming additional insureds.

15. Notices. All notices herein required shall be in writing and shall be sent by certified or registered mail, postage prepaid, addressed as follows:

To Consultant: Leo Rubio, President To City: City Manager Bennett Engineering Services City of Pleasanton
2300 First Street, Suite 240 123 Main Street, P.O. Box 520 Livermore, CA 94550 Pleasanton, CA 94566

Page 309 of 632 ends

16. Conformance to Applicable Laws. Consultant shall comply with all applicable Federal, State, and Municipal laws, rules, and ordinances. Consultant shall not discriminate in the employment of persons or in the provision of services under this Agreement on the basis of any legally protected classification, including race, color, national origin, ancestry, sex or religion of such person.

17. Licenses, Certifications, Copyrights and Permits. Prior to the City's execution of this Agreement and prior to the Consultant's engaging in any operation or activity set forth in this Agreement, Consultant shall obtain a City of Pleasanton business license, which must be kept in effect during the term of this Agreement. Consultant represents that its work will not unlawfully infringe any other copyrighted work. Consultant covenants that it has obtained all certificates, licenses, permits and the like required to perform the services under this Agreement.

18. Records and Audits. Consultant shall maintain all records regarding this Agreement and the services performed for a period of three years from the date that final payment is made. At any time during normal business hours, the records shall be made available to the City to inspect and audit.

19. Confidentiality. Consultant shall exercise reasonable precautions to prevent the unauthorized disclosure and use of City reports, information or conclusions.

20. Conflicts of Interest. Consultant covenants that other than this Agreement, Consultant has no financial interest with any official, employee or other representative of the City. Consultant and its principals do not have any financial interest in real property, sources of income or investment that would be affected in any manner by the performance of Consultant’s services under this Agreement. If such an interest occurs, Consultant will immediately notify the City.

21. Waiver. In the event either City or Consultant at any time waive any breach of this Agreement by the other, such waiver shall not constitute a waiver of any other or succeeding breach of this Agreement, whether of the same or of any other covenant, condition or obligation.

22. Governing Law. California law shall govern any legal action pursuant to this Agreement with venue in the applicable court or forum for Alameda County.

23. Attorney's Fees. The prevailing party in any action brought to enforce or construe the terms of this Agreement may recover from the other party its reasonable costs and attorney's fees expended in connection with such an action.

24. No Personal Liability. No official or employee of City shall be personally liable to Consultant in the event of any default or breach by the City or for any amount due Consultant.

25. Counterparts and Electronic Signatures. 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

Page 310 of 632 ends

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.

26. Scope of Agreement. This writing constitutes the entire Agreement between the parties.

Any modification to the Agreement shall be in writing and signed by both parties.

THIS AGREEMENT is executed the date first above written.

CITY OF PLEASANTON

By:

CONSULTANT

Gerry Beaudin, City Manager Signature

ATTEST:

Print name

Jocelyn Kwong, City Clerk Title:

Approved as to form:

By:

Daniel G. Sodergren, City Attorney Signature

Print name
Title:

[If Consultant is a corporation, signatures must comply with California Corporations Code §313]

Rev. 11/23

Page 311 of 632 ends

BILLING

CLASSIFICATIONS RATE CLASS CHARGE
RATE

ENGINEER/ SURVEYOR
10 $329
9 $313
8 $291
7 $271
6 $252
5 $238
4 $221
3 $209
2 $197
1 $185

PROJECT COORDINATOR
3 $180
2 $155
1 $129

BILLING

CLASSIFICATIONS RATE CLASS CHARGE
RATE

DESIGNER/TECH
7 $212
6 $197
5 $175
4 $155
3 $139
2 $125
1 $108

PROJECT ADMINISTRATOR
5 $185
4 $162
3 $136
2 $108
1 $93

Exhibit A

PROFESSIONAL STAFF RATE SCHEDULE | 2026/2027 FISCAL YEAR

Direct expenses (including, but not limited to, mileage, reproduction, postage, online assessor mapping fees, etc.) and subconsultant costs will be billed at cost plus fifteen percent (10%) for administration, coordination, and
handling.

Standard hourly rates do not apply to a demand to per-
form work during an overtime period.

Work required to be performed during an overtime period (as mandated by California law) will be charged at a 50% premium. Work mandated by Prevailing Wage laws will be
charged accordingly.

Hourly rates include all compensation for wages, sala-
ry-related benefits, overhead, general office administra- tion, and profit. Direct project administrative hours will be billed at the rate shown above.

Classifications may be added or removed with City
pre-approval.

Changes in the requested scope of work or projected
schedule may result in the revision of the proposed fees and amendment to the total contract amount.

Rates are subject to change annually effective July 1.
−
−
−
−
−
−
−

Page 312 of 632 ends

 Exhibit A
 Certificate(s) of Insurance
 Professional Liability
Attachment 2

DESIGN PROFESSIONAL SERVICES AGREEMENT

THIS DESIGN PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is entered into July 1, 2026, between the City of Pleasanton, a municipal corporation ("City"), and CSG Consultants, Inc. whose address is 3875 Hopyard Road, Suite 141 Pleasanton, CA 94588, and telephone number is (925) 931.0370, ("Consultant").

RECITALS
A. Consultant is qualified and experienced in providing on-call civil engineering services for the purposes specified in this Agreement.

B. City finds it necessary and advisable to use the services of Consultant for the purposes provided in this Agreement.

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

3. Staff. Consultant shall assign Hatem Ahmed, PE, PMP to serve as project manager, who may not be replaced without written consent of City.

4. Term. Time is of the essence. Consultant shall begin work July 1, 2026. The work as described in Exhibit A, Scope of Work, shall be completed by June 30, 2029.

5. Compensation. For the as-needed services to be rendered, City shall pay consultant on a time- and-materials basis for a not-to-exceed total of $500,000 for the term of the Agreement.

Page 313 of 632 ends

As for each work authorization. compensation for services and reimbursement for costs shall not exceed the amount set in each executed Work Authorization unless the parties agree pursuant to Section 8, below.

Annual adjustments will be based upon the CPI-U for the San Francisco Area as issued by the US Bureau of Labor Statistics and submitted prior to the end of the fiscal year for approval.

Payment shall be made on a monthly basis upon receipt and approval of Consultant's invoice.

6. Sufficiency of Consultant's Work.

c. Consultant’s responsibilities under this section shall not be delegated. Consultant shall be responsible to the City for acts, errors, or omissions of Consultant’s subconsultants.

Page 314 of 632 ends

8. Changes. City may request changes in the scope of services to be provided by Consultant.

Any changes and related fees shall be mutually agreed upon between the parties and subject to a written amendment to this Agreement.

Page 315 of 632 ends

Page 316 of 632 ends

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

d. Professional Liability Insurance. Professional liability insurance in the amount of $2,000,000.

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

15. Notices. All notices herein required shall be in writing and shall be sent by certified or registered mail, postage prepaid, addressed as follows:

To Consultant: Cyrus Kianpour, PE, PLS To City: City Manager CSG Consultants, Inc. City of Pleasanton
3875 Hopyard Road, Suite 141 123 Main Street, P.O. Box 520 Pleasanton, CA 94588 Pleasanton, CA 94566

Page 317 of 632 ends

19. Confidentiality. Consultant shall exercise reasonable precautions to prevent the unauthorized disclosure and use of City reports, information or conclusions.

22. Governing Law. California law shall govern any legal action pursuant to this Agreement with venue in the applicable court or forum for Alameda County.

24. No Personal Liability. No official or employee of City shall be personally liable to Consultant in the event of any default or breach by the City or for any amount due Consultant.

Page 318 of 632 ends

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.

26. Scope of Agreement. This writing constitutes the entire Agreement between the parties.

Any modification to the Agreement shall be in writing and signed by both parties.

THIS AGREEMENT is executed the date first above written.

CITY OF PLEASANTON

By:

CONSULTANT

Gerry Beaudin, City Manager Signature

ATTEST:

Print name

Jocelyn Kwong, City Clerk Title:

Approved as to form:

By:

Daniel G. Sodergren, City Attorney Signature

Print name
Title:

[If Consultant is a corporation, signatures must comply with California Corporations Code §313]

Rev. 11/23

Page 319 of 632 ends

Exhibit A

COST PROPOSAL TO THE
City of Pleasanton
General Civil Engineering Services

April 2 8 , 2026

3875 Hopyard Road, Suite 141
Pleasanton, California 94588
Phone: 925.931.0370
Fax: 925.931.0388
www.csgengr.com

Page 320 of 632 ends

CITY OF PLEASANTON
On-Call Civil Engineering Firm to Provide General
Civil Engineering Services RFQ PWD 26.701

12 | COST PROPOSAL
CSG Consultants’ fee schedule for proposed services is provided below.

PERSONNEL / ROLE YEAR ONE
Administrative Assistant $120
Engineering Intern $150
Assistant Engineer $190
Associate Engineer $230
Structural Engineer $280
Associate Surveyor $220
Senior Engineer $260
Senior Land Surveyor $255
Senior Structural Engineer $300
Principal Engineer $300
Senior Principal Engineer $325
Two-Person Survey Crew $475
Assistant Project Manager $190
Project Manager $245
Senior Project Manager $260
Office Engineer $190
Construction Inspector $210
Senior Construction Inspector $218
Assistant Resident Engineer $218
Resident Engineering / Construction Manager $276
Structural Representative $276
Terms
• All hourly rates include overhead costs including but not limited to salaries, benefits, workers’ compensation insurance, local travel, and miscellaneous office expenses.
• Overtime services and services provided outside of normal business hours will be billed at 1.5x the applicable hourly rate.
• On July 1 of each year following the contract start year, CSG will initiate an hourly rate increase based on change in CPI for the applicable region.
• CSG will mail/email an invoice every month for services rendered during the previous month. Unless otherwise agreed, payment terms are 30 days from receipt of invoice.
• Markup on ODCs and subconsultants to be capped at 10%.

Page 321 of 632 ends

 Exhibit A
 Certificate(s) of Insurance
 Professional Liability
Attachment 3

DESIGN PROFESSIONAL SERVICES AGREEMENT

THIS DESIGN PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is entered into July 1, 2026, between the City of Pleasanton, a municipal corporation ("City"), and Bellecci & Associates, Inc. dba Sanbell-Bay Area whose address is 7077 Koll Center Parkway, Suite 210 Pleasanton, CA 94566, and telephone number is (925) 685-4569, ("Consultant").

RECITALS

A. Consultant is qualified and experienced in providing on-call civil engineering services for the purposes specified in this Agreement.

B. City finds it necessary and advisable to use the services of Consultant for the purposes provided in this Agreement.

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

3. Staff. Consultant shall assign Daniel Leary, PE, PTOE, QSD to serve as project manager, who may not be replaced without written consent of City.

4. Term. Time is of the essence. Consultant shall begin work July 1, 2026. The work as described in Exhibit A, Scope of Work, shall be completed by June 30, 2029.

5. Compensation. For the as-needed services to be rendered, City shall pay consultant on a time- and-materials basis for a not-to-exceed total of $500,000 for the term of the Agreement.

Page 322 of 632 ends

Annual adjustments will be based upon the CPI-U for the San Francisco Area as issued by the US Bureau of Labor Statistics and submitted prior to the end of the fiscal year for approval.

Payment shall be made on a monthly basis upon receipt and approval of Consultant's invoice.

6. Sufficiency of Consultant's Work.

c. Consultant’s responsibilities under this section shall not be delegated. Consultant shall be responsible to the City for acts, errors, or omissions of Consultant’s subconsultants.

Page 323 of 632 ends

8. Changes. City may request changes in the scope of services to be provided by Consultant.

Any changes and related fees shall be mutually agreed upon between the parties and subject to a written amendment to this Agreement.

Page 324 of 632 ends

Page 325 of 632 ends

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

d. Professional Liability Insurance. Professional liability insurance in the amount of $2,000,000.

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

15. Notices. All notices herein required shall be in writing and shall be sent by certified or registered mail, postage prepaid, addressed as follows:

To Consultant: Daniel Leary, PE To City: City Manager
Sanbell-Bay Area City of Pleasanton
7077 Koll Center Parkway, Ste. 210 123 Main Street, P.O. Box 520 Pleasanton, CA 94566 Pleasanton, CA 94566

Page 326 of 632 ends

19. Confidentiality. Consultant shall exercise reasonable precautions to prevent the unauthorized disclosure and use of City reports, information or conclusions.

22. Governing Law. California law shall govern any legal action pursuant to this Agreement with venue in the applicable court or forum for Alameda County.

24. No Personal Liability. No official or employee of City shall be personally liable to Consultant in the event of any default or breach by the City or for any amount due Consultant.

Page 327 of 632 ends

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.

26. Scope of Agreement. This writing constitutes the entire Agreement between the parties.

Any modification to the Agreement shall be in writing and signed by both parties.

THIS AGREEMENT is executed the date first above written.

CITY OF PLEASANTON

By:

CONSULTANT

Gerry Beaudin, City Manager Signature

ATTEST:

Print name

Jocelyn Kwong, City Clerk Title:

Approved as to form:

By:

Daniel G. Sodergren, City Attorney Signature

Print name
Title:

[If Consultant is a corporation, signatures must comply with California Corporations Code §313]

Rev. 11/23

Page 328 of 632 ends

Exhibit A
Billing Rates

Jan 1, 2026 to
Dec 31, 2026
Engineering Services
Engineering Technician/Intern $108
Staff Engineer I $146
Staff Engineer II $162
Staff Engineer III $176
Staff Engineer IV $190
Project Engineer I $184
Project Engineer II $224
Project Manager II $224
Senior Engineer I $228
Senior Engineer II / Senior Project Manager $242
Principal Engineer I $260
Principal Engineer II $288
Construction Services
Public Works Inspector $176
Senior Public Works Inspector $190
Public Works Inspector Assistant $146
Construction Manager $228
Administrative $116
Resident Engineer $224
Land Surveying Services

Safety Monitor/Flag Person $128
Staff Surveyor I $146
Staff Surveyor II $176
Staff Surveyor III $184
Professional Land Surveyor I $240
Professional Land Surveyor II $256
Survey, Party Chief II $196
Survey, Journeyman Rodman $130
Survey, Apprentice I $84
Survey, Apprentice II $90
Survey, Apprentice III $110
Survey, Apprentice IV $126
2- Man Survey Crew $326
3- Man Survey Crew $436
Drone Photography/Videography $240
Graphic Artist $154
Legal & Expert Services

Document Review and Case Meetings $270
Depositions and Trial Testimony $446

Client authorized overtime work will be charged at 135% of the standard hourly *** billing rates to increase 4% per year, beginning on January 1

Expenses
Bond $0.50/SF
Mylar $18/SF
Large Format Color Presentation $3.00/SF
Company Vehicle at Site $16/hr
Color Copies - 8.5x11 $1.50/EA
Color Copies - 11x17 $2.5/EA
Other Direct Project Expenses Cost + 10%
Subcontractors Cost + 10%
Outside Printing & Delivery Service Cost + 10%

Annual adjustment capped at 4% annually as described more particularly in Exhibit A, which is attached and incorporated to the extent consistent with this Agreement. Annual adjustments will be based upon the CPI-U for the San Francisco Area as issued by the US Bureau of Labor Statistics and submitted prior to the end of the fiscal year for approval.

Page 329 of 632 ends

 Exhibit A
 Certificate(s) of Insurance
 Professional Liability
Attachment 4

DESIGN PROFESSIONAL SERVICES AGREEMENT

THIS DESIGN PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is entered into July 1, 2026, between the City of Pleasanton, a municipal corporation ("City"), and Wilsey Ham whose address is 3130 La Selva Street, Suite 100 San Mateo, CA 94403 Pleasanton, CA 94566, and telephone number is (650) 349-3151, ("Consultant").

RECITALS

A. Consultant is qualified and experienced in providing on-call civil engineering services for the purposes specified in this Agreement.

B. City finds it necessary and advisable to use the services of Consultant for the purposes provided in this Agreement.

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

3. Staff. Consultant shall assign Brandon Davis, PE to serve as project manager, who may not be replaced without written consent of City.

4. Term. Time is of the essence. Consultant shall begin work July 1, 2026. The work as described in Exhibit A, Scope of Work, shall be completed by June 30, 2029.

5. Compensation. For the as-needed services to be rendered, City shall pay consultant on a time- and-materials basis for a not-to-exceed total of $500,000 for the term of the Agreement.

Page 330 of 632 ends

Annual adjustments will be based upon the CPI-U for the San Francisco Area as issued by the US Bureau of Labor Statistics and submitted prior to the end of the fiscal year for approval.

Payment shall be made on a monthly basis upon receipt and approval of Consultant's invoice.

6. Sufficiency of Consultant's Work.

c. Consultant’s responsibilities under this section shall not be delegated. Consultant shall be responsible to the City for acts, errors, or omissions of Consultant’s subconsultants.

d. Whenever the scope of work requires or permits review, approval, conditional approval or disapproval by the City, it is understood that such review, approval, conditional

Page 331 of 632 ends

approval or disapproval is solely for the purposes of administering this Agreement and determining whether the Consultant is entitled to payment for such work, and not be construed as a waiver of any breach or acceptance by the City of any responsibility, professional or otherwise, for the work, and does not relieve the Consultant of responsibility for complying with the standard of performance or laws, regulations, industry standards, or from liability for damages caused by negligent acts, errors, omissions, noncompliance with high industry standards, or the willful misconduct of Consultant.

8. Changes. City may request changes in the scope of services to be provided by Consultant.

Any changes and related fees shall be mutually agreed upon between the parties and subject to a written amendment to this Agreement.

Page 332 of 632 ends

Page 333 of 632 ends

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

d. Professional Liability Insurance. Professional liability insurance in the amount of $2,000,000.

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

15. Notices. All notices herein required shall be in writing and shall be sent by certified or registered mail, postage prepaid, addressed as follows:

To Consultant: Brandon Davis, PE To City: City Manager
Wilsey Ham City of Pleasanton
3130 La Selva Street, Suite 100 123 Main Street, P.O. Box 520 San Mateo, CA 94403 Pleasanton, CA 94566

Page 334 of 632 ends

19. Confidentiality. Consultant shall exercise reasonable precautions to prevent the unauthorized disclosure and use of City reports, information or conclusions.

22. Governing Law. California law shall govern any legal action pursuant to this Agreement with venue in the applicable court or forum for Alameda County.

24. No Personal Liability. No official or employee of City shall be personally liable to Consultant in the event of any default or breach by the City or for any amount due Consultant.

Page 335 of 632 ends

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.

26. Scope of Agreement. This writing constitutes the entire Agreement between the parties.

Any modification to the Agreement shall be in writing and signed by both parties.

THIS AGREEMENT is executed the date first above written.

CITY OF PLEASANTON

By:

CONSULTANT

Gerry Beaudin, City Manager Signature

ATTEST:

Print name

Jocelyn Kwong, City Clerk Title:

Approved as to form:

By:

Daniel G. Sodergren, City Attorney Signature

Print name
Title:

[If Consultant is a corporation, signatures must comply with California Corporations Code §313]

Rev. 11/23

Page 336 of 632 ends

2026 Charge Rate Fee Schedule
Exhibit A

The compensation of Wilsey Ham for work done will be on the basis of an hourly charge rate, plus expenses incurred and will be the sum of all the items set forth below:

Personnel Services Hourly Rates
Senior Principal Engineer/Surveyor $ 357
Principal Engineer/Surveyor $ 336
Senior Supervising Engineer/Surveyor $ 320
Supervising Engineer/Surveyor $ 305
Managing Engineer/Surveyor $ 286
Project Engineer IV/Surveyor IV, Senior Engineer/Surveyor $ 268 Project Engineer III/Surveyor III $ 249
Staff Engineer II/Surveyor II $ 226
Staff Engineer I/Surveyor I $ 210
Associate Engineer/Surveyor $ 194
Assistant Engineer/Surveyor $ 184
Senior Designer/Senior Technician $ 189
Designer II/Survey Technician II $ 178
Designer I/Survey Technician I $ 162
CAD Operator II/Drafter II $ 168
CAD Operator/Survey Technician/Drafter $ 131
2-Person Survey Crew $ 398
1-Person Survey Crew $ 199
Senior Administrator/Contracts $ 168
Administrative Assistant III/Senior Project Coordinator $ 136 Administrative Assistant II/Project Coordinator $ 110
Administrative Assistant I/Office Support $ 94
Supervising Senior Construction Manager $ 289
Senior Construction Manager $ 241
Construction Manager II $ 226
Construction Manager I $ 205
Associate Construction Manager $ 173
Assistant Construction Manager $ 150
Supervising Senior Construction Inspector $ 257
Senior Construction Inspector $ 241
Construction Inspector $ 220
Senior Construction Document Controls Specialist $ 157
Construction Document Controls Specialist $ 136
Effective through December 31, 2026 and subject to revision annually thereafter.  Reimbursable Expenses:
a. Travel and subsistence expenses paid to or on behalf of employees on business connected with the project, plus a markup charge of 10%.
b. Seventy cents ($0.70) per mile, or the current rate allowable set by the Internal Revenue Service for use of company passenger vehicles, and eighteen dollars ($18.00) per hour for use of vehicles carrying field survey equipment and supplies or used for field inspection and supervision. c. The cost of materials, supplies, reproduction, agency filing fees, communication expense or other services, plus a markup charge of 10%.
d. Invoice cost of services and expenses charged to Wilsey Ham by outside consultants, professional or technical firms engaged in connection with the project, plus a handling charge of 10%.

TABLE 260XXX

Page 337 of 632 ends

Page 1 of 15 ends

Item #11

CITY COUNCIL AGENDA REPORT

June 2, 2026
Public Works - Utilities Division

TITLE: APPROVE THE PROPOSED SEWER RATE STRUCTURE, SEWER RATE, AND

UPDATED SEWER CONNECTION FEES TO SUPPORT IMPLEMENTATION OF THE SEWER RATE STUDY'S FINANCIAL PLAN SCENARIO 1 - MAINTAIN

SUMMARY
The City of Pleasanton owns and operates a sanitary sewer collection system serving approximately 21,000 service connections and conveying wastewater to the Dublin San Ramon Services District (DSRSD) and the City of Livermore (for the Ruby Hill service area) for treatment and disposal.

In 2025, the City completed its Sewer System Management Plan (SSMP) and a long-term sewer Capital Improvement Program (CIP) to guide sewer program management, support infrastructure sustainability, and reduce the risk of sewer overflows. To maintain financial sustainability as the SSMP is implemented, the City is conducting the 2026 Sewer Rate Study (Rate Study) to evaluate the sewer enterprise’s financial condition and develop cost-based, equitable rates that recover the cost of service across customer classes.

On February 17, 2026, the City Council adopted Scenario 1 – Maintain as the financial planning framework for the Rate Study. On April 21, 2026, staff conducted a workshop with the City Council to present the sewer rate structure and preliminary findings of the sewer rate study, including an overview of the proposed sewer rates necessary to implement the Rate Study financial plan’s Maintain Scenario. During the workshop, staff provided information for City Council consideration, including updating sewer rates for condominium and multifamily residential customers to establish a consistent rate structure aligned with DSRSD methodology, revising the sewer rate methodology for commercial and industrial customers to align with DSRSD by providing one collection rate regardless of business classification, continuing the distinction between non-metered and submetered Pleasanton Unified School District customers, and discussing the existing sewer rate discount applied to Ruby Hill customers.

Based on the feedback from the City Council, staff is requesting approval of the proposed sewer rate structure and sewer rates necessary to implement the Rate Study’s Maintain Scenario. Staff is also recommending and seeking council approval to update connection fees to support the Maintain Scenario. Approval of these actions will allow staff to finalize the Rate Study, complete the required Proposition 218 noticing and hearing process, and return to City Council for final consideration of rate adoption, with updated rates proposed to take effect on January 1, 2027. Connection fees are not subject to the Proposition 218 process. However, obtaining City Council approval of the updated connection fees concurrently with the sewer rate adjustments, effective January 2027, is essential to support the long-term financial sustainability of the sewer enterprise program.

Page 338 of 632 ends

Page 2 of 15 ends

RECOMMENDATION
Approve the proposed sewer rate structure, sewer rates, and updated sewer connection fees needed to implement the Rate Study Financial Plan’s Scenario 1 – Maintain, including:

1. Update the sewer rates for condominium and multifamily homes to be the same, consistent with DSRSD methodology;

2. Revise the sewer rate methodology for commercial and industrial customers to align with DSRSD by providing one collection rate regardless of business classification; and

3. Continue differentiating between non-submetered and submetered Pleasanton Unified School District customers.

BACKGROUND
The City owns and operates a sewer collection system consisting of approximately 253 miles of gravity sewers, 4.9 miles of force mains, eight siphons, 11 active pump stations, and approximately 21,000 service connections. Average dry-weather flow is approximately 6 million gallons per day (MGD).

The City has agreements with the Dublin San Ramon Services District (DSRSD) and the City of Livermore, for the Ruby Hill service area, for wastewater treatment and is a member of the Livermore-Amador Valley Water Management Agency (LAVWMA) for disposal of treated wastewater. The City also has an agreement with Alameda County, which allows sewage flows from the County’s Castlewood Service Area to be conveyed through the City’s collection system for treatment at DSRSD.

Historically, the City has relied on Consumer Price Index (CPI) increases to raise sewer revenue. This approach has not generated the resources needed to adequately maintain and rehabilitate aging infrastructure or keep up with increasing operational and regulatory demands. As a result, operating costs have been withdrawing from the sewer enterprise fund balance every year. With aging infrastructure experiencing higher failure rates and increasing regulatory requirements, it is very important that the City establish a justifiable sewer rate that supports the system's critical infrastructure needs in the coming years and meets State regulatory requirements for managing the sanitary sewer system.

On June 17, 2025, the City Council approved the City’s 2025 Sewer System Management Plan (SSMP), a living document required by the State Water Resources Control Board (SWRCB) that provides the framework for managing the sewer program. The SSMP identified the need for the City to establish a complete and comprehensive sewer management program that supports required operations and maintenance (O&M), repair and replacement (R&R), and capital improvement program (CIP) projects to meet the minimum State requirements for effective sewer system management and to maintain compliance with all sanitary sewer regulatory requirements. As required in the SSMP, the City developed a long-term sewer CIP identifying critical infrastructure needs over the next 20 years, which the City Council approved on November 4, 2025.

To support financial sustainability during SSMP implementation, the City retained a utility rate consulting firm, Water Resources Economics, LLC (WRE), to prepare the 2026 Sewer Rate Study. The Rate Study will develop cost-based, fair, and legally defensible sewer rates and connection fees that adequately fund the sewer program.

Page 339 of 632 ends

Page 3 of 15 ends

The proposed sewer rates and fees have been developed with the following objectives:
• Maintaining financial sufficiency to support ongoing O&M and CIP needs to implement the SSMP;
• Aligning City collection rates with cost-of-service principles; • Simplifying the rate structure to improve transparency and consistency with peer agencies; and
• Updating connection fees to equitably recover costs imposed by new development.

The Rate Study objectives are:
• Maintain financial sufficiency for O&M and CIP needs to implement the SSMP through a five-year financial plan for fiscal year (FY) 2026 through FY 2030; • Stabilizing system condition over the five-year planning horizon (FY 2026 to FY 2030); • Develop a four-year sewer rate schedule for FY 2027 through FY 2030, with rates effective January 1, 2027, and July 1 at the start of each subsequent fiscal year; • Align collection rates with cost-of-service principles through an updated cost-of-service analysis;
• Simplify the rate structure to improve transparency and consistency with peer agencies; and
• Updating connection fees to equitably recover costs imposed by new development.

On February 17, 2026, the City Council reviewed three implementation scenarios and adopted Scenario 1 — Maintain, which provides a balanced approach between near-term improvements and long-term risk. Staff was directed to return in spring 2026 to review rate impacts and policy issues needed to finalize the Rate Study and prepare for Proposition 218 noticing.

On April 21, 2026, the City Council held a workshop to review proposed sewer rates, rate structure options, and policy considerations necessary to complete the Rate Study and prepare for the Proposition 218 process. At the workshop, the City Council expressed support for the proposed rate structure changes. If the recommendations in this report are approved, staff will return to the City Council in July 2026 with the final Rate Study Report and a request to initiate the Proposition 218 noticing process. The proposed sewer rates would take effect on January 1, 2027.

DISCUSSION
On February 17, 2026, the City Council adopted the Rate Study - Maintain financial planning scenario for the sanitary sewer program. The Maintain Scenario is intended to stabilize system conditions over a five-year period, FY 2026 through FY 2030, by providing the funding needed for improved O&M and prioritized capital improvements consistent with the SSMP and long- term sewer CIP, while managing rate impacts to the extent feasible.

This scenario represents the minimum level of investment needed to meet State regulatory requirements for effective sewer system management as defined under the City Council- approved Sewer System Management Plan (SSMP) submitted to the State in July 2025.

Page 340 of 632 ends

Page 4 of 15 ends

Over the next four years, the Maintain Scenario will focus on establishing and implementing critical programs for the inspection, maintenance, and repair of the City’s sanitary sewer system. These efforts include system-wide sewer flushing; manhole, force main, and lift station inspection and maintenance; development of a comprehensive fats, oils, and grease (FOG) inspection, prevention, and maintenance program; establishment of emergency response plans; enhanced staff training; and replacement of vehicles and equipment necessary to effectively monitor, operate, and maintain the City’s sanitary sewer infrastructure.

Under the Maintain Scenario, planned capital improvements will be implemented in accordance with the City Council-approved Sewer CIP, which was adopted in 2025 based on the SSMP. This program provides the framework for prioritizing and delivering system rehabilitation and replacement projects to maintain regulatory compliance and long-term infrastructure reliability. Over the course of the four-year sewer rate study period, it is typical that staff may need to make adjustments to the 10-year Sewer CIP to address unforeseen conditions, evolving system needs, or emerging regulatory requirements. In such cases, staff will bring forward updates for Council consideration through the annual budget process or the City’s overall CIP programming cycle.

To implement the Maintain scenario, the sewer enterprise requires additional funding from both rate revenue and debt financing to support ongoing operations, deliver planned capital improvements, and maintain key financial performance metrics (including reserve balances and debt coverage requirements). The funding requirements for the Maintain scenario include:
• $27.4 million in additional rate revenue
• $28.0 million in debt financing

Financial Plan Changes
Following City Council direction, staff refined the timing of O&M costs, CIP implementation, and associated debt issuances to better align with financial advisor recommendations that would put the City in a better position for bond issuance. These updates improve financial feasibility while maintaining the planned investment level. While costs and debt issuance were rephased within the five-year planning period, the total funding needs (additional rate revenue and proposed debt financing) and the Maintain Scenario’s goal of stabilizing system conditions by the end of the planning period remain unchanged. A revised Maintain Scenario CIP was approved by the City Council on May 19, 2026, as part of the mid-term budget process.

Based on the financial plan, Table 1 summarizes the revenue changes needed to implement the Maintain Scenario adopted by the City Council. For context, the current City portion of a typical residential service sewer bill is $31.70 per bimonthly billing cycle. The year 1 rate revenue adjustment would increase those sewer bills by approximately $12.65 per month. The estimated impact by customer classification as a percentage is shown in Table 2.

Table 1. Projected Sewer Revenue Adjustments FY 2027- FY 2030

Page 341 of 632 ends

Page 5 of 15 ends

Cost of Service Methodology
The cost-of-service analysis allocates the City’s sewer collection costs among customer classes based on each class’s estimated contribution to wastewater flows. This approach is consistent with industry best practices and is intended to ensure that rates are proportional to the cost of providing service. This is the first time Pleasanton sewer rates have been comprehensively evaluated with a cost-of-service study designed to right-size and more equitably distribute costs across customer classes. For many years, the City relied on consumer price index (CPI)-based adjustments, which did not generate sufficient revenue to operate, maintain, and rehabilitate the sewer system.

Estimated wastewater flows were developed as follows:
• Residential Customers: Wastewater flow was estimated using average household size by unit type, based on American Community Survey data, and a City-specific indoor water use assumption of 51 gallons per capita per day. • Non-Residential Customers: Wastewater flow was estimated using FY 2025 water use data, which provides a representative basis for evaluating customer demand patterns. To better reflect indoor water use, which most closely correlated with sewer flows, a return factor was applied based on the ratio of average winter water use to average annual water use.

Winter usage is commonly used as a proxy for indoor demand, as it generally excludes outdoor irrigation, allowing for a more accurate estimate of wastewater flow for commercial, industrial, and institutional customers.

Cost Allocation Results
Based on this methodology, total system costs were allocated to customer classes in proportion to their estimated wastewater flow contributions. Updated water use data and refined flow assumptions more accurately reflect current usage patterns. Overall, the updated allocation better aligns costs with sewer system use across customer classes and supports a cost-of-service-based rate structure.

The analysis indicates that a portion of system costs and overall usage has shifted from residential and institutional customers to commercial and industrial customers. Such changes are typical over time and highlight the importance of periodically updating cost-of-service studies.

Proposed Sewer Rate Structure Changes
The proposed sewer rate structure is designed to align with cost-of-service principles, simplify the current structure, and improve consistency with peer agencies, making sewer bills easier for customers to understand.

The proposed changes include:
• Residential: Combine condominium and multifamily customers into a single rate category.
• Commercial/Industrial: Establish a single uniform collection rate across all business

Page 342 of 632 ends

Page 6 of 15 ends

classifications and apply a minimum charge.
• Institutional (School): Continue to distinguish between submetered and non- submetered PUSD customer rates.

These updates simplify the sewer rate structure while retaining customer class differences, which were supported by measurable differences in water usage and wastewater flow characteristics.

Proposed Pleasanton Sewer Rates
The proposed sewer rates are designed to meet the financial plan’s revenue requirements and reflect the updated cost-of-service results and proposed rate structure changes. Rates have been developed to ensure that the sewer enterprise remains financially sustainable over the study period while meeting the sewer program's needs. Table 2 reflects the proposed sewer rates by customer category effective January 1, 2027. The rates in this table do not include DSRSD and Livermore sanitary charges, which are a direct pass-through cost to Pleasanton customers.

Table 2. Proposed Pleasanton Sewer Rates Effective January 1, 2027 (Excludes DSRSD and Livermore Charges)

Customer Impacts
Impacts were evaluated by comparing current bills to projected bills under the proposed rates for residential and non-residential customers. In the analysis, staff evaluated the impact of customers on the City’s sewer collection costs. A second customer impact analysis was

Page 343 of 632 ends

Page 7 of 15 ends

performed using combined bills that included Pleasanton collection charges and treatment costs from DSRSD or Livermore. Treatment costs are shown using current FY 2026 rates and proposed FY 2027 rates to provide a comprehensive view of total sewer service costs. The result of this analysis is summarized in Table 3 — Analysis of Pleasanton Sewer Bill Changes by Customer Classification.

For single-family homes, the combined bimonthly sewer bill would increase from $93.28 to $122.61, a difference of $29.33 per bimonthly billing cycle. In the Ruby Hill neighborhood, a single-family home would see its bimonthly bill increase from $166.68 to $213.01, a difference of $46.33. Ruby Hill customers pay a higher sewer cost for sewer services compared to other Pleasanton customers because their wastewater is collected by both Pleasanton and Livermore’s collection systems and then treated by Livermore’s wastewater treatment facility.

By comparison, most other Pleasanton customers pay Pleasanton collection charges and DSRSD treatment charges. As a result, Ruby Hill customers pay for two collection systems in addition to treatment costs, while most other customers pay for one collection system plus treatment.

For commercial and industrial customers, classifications would be updated to align with the DSRSD rate structure, with charges based on actual usage at a single unit rate and a minimum charge equal to the multi-family rate. This is a significant change from the current rate structure and is based on industry best practices and consideration that wastewater collected from commercial and industrial customers costs the same to move, regardless of source. Some customers who have historically had lower unit rates would see a larger increase than others based on their typical usage patterns. Under the proposed FY 2027 rates, a typical office or retail customer, categorized as “All-Other,” would see its combined sewer bill increase from $469.06 to $740.72, a difference of $271.66. Additionally, a typical full-service restaurant, using 154 units of water, would see its bimonthly sewer bill increase from $1,239 to $1,703, a difference of $463. These two commercial/industrial customer classifications are the first and second most common, respectively.

Schools would continue to be differentiated based on whether they are submetered (separate irrigation and domestic water meters) versus non-submetered (combined water meters).

Under the proposed FY 2027 increase, submetered schools with an average usage of 172 units per bimonthly billing cycle would see their bimonthly sewer bill increase from $849.68 to $1,002.76, a difference of $153.08 per billing cycle. Non-submetered schools with average usage of 1,394 units per billing cycle would see their bimonthly sewer bill increase from $6,175.42 to $6,523.92, a difference of $348.50 per billing cycle.

This update aligns with industry standards and is supported by the financial analysis and cost- of-service study. Total sewer bill costs are shown in Table 3 using current FY 2026 rates and proposed FY 2027 rates to provide a comprehensive view of total sewer service costs.

Page 344 of 632 ends

Page 8 of 15 ends

Table 3. Analysis of Sewer Bill Changes by Customer Classification

Sewer Rate Survey
A sewer rate survey compared Pleasanton’s combined collection and treatment bills with peer agencies in the Tri-Valley area for single-family residential customers and average commercial/industrial customers. The analysis indicates that, after implementation of the proposed rates, Pleasanton’s combined sewer bills would generally remain within the range of peer agencies, dependent on customer type. Figure 1 reflects the sewer rate survey for single- family homes, Figure 2 reflects the sewer rate survey for a typical full-service restaurant, and Figure 3 reflects the sewer rate survey for a typical submetered school customer. Each figure shows combined collection and treatment rates for Pleasanton/DSRSD customers.

Figure 1. Tri-Valley Sewer Rate Survey for Single-Family Customers

Page 345 of 632 ends

Page 9 of 15 ends

Figure 2. Tri-Valley Sewer Rate Survey for Full-Service Restaurant

Figure 3. Tri-Valley Sewer Rate Survey for School – Submetered

Multi-Year Single Family Customer Impacts
Multi-year impacts on single-family customers were evaluated by comparing historical bimonthly bills with projected bimonthly bills under the proposed rates. Pleasanton Collection charges represent the City’s sewer collection costs, and Treatment Pass-through charges represent DSRSD treatment costs. The total bill is the sum of these two charges.

From prior to FY 2019 through FY 2026, the average total bill increased from $77.28 to $91.95, with approximately 65 percent of the increase attributable to Treatment Pass-through charges from DSRSD. Overall, most historical bill increases have been driven by regional Treatment Pass-through cost increases outside the City’s control. Pleasanton Collection charges have either remained unchanged (FY 2021 through FY 2023) or increased based on CPI (Consumer Price Index) adjustments to cover inflationary cost increases. However, CPI adjustments alone typically are not sufficient for new operating costs or CIP projects required to maintain the City’s sewer collection infrastructure.

Page 346 of 632 ends

Page 10 of 15 ends

Table 5. Historical Sewer Rate Changes and Proposed New Sewer Rate for Single- Family Customers

Figure 4. Multi-Year Single-Family Customer Impacts

Multi-Year Single-Family Rate Survey
A sewer rate survey was conducted to compare historical and proposed Pleasanton rates to those of peer agencies in the Tri-Valley area for single-family customers. Bimonthly bills for each agency represent the sum of both collection and treatment charges. Historically, Pleasanton bills have been on the lower range of peer agencies, more comparable to DSRSD and significantly below Livermore. With the proposed rates, Pleasanton bills are expected to remain below Livermore and within the range of peer agencies in the Tri-Valley area.

Page 347 of 632 ends

Page 11 of 15 ends

Table 6. Comparison of Historical and Proposed New Sewer Rates between Tri-Valley Cities (Pleasanton, DSRSD, and Livermore) for Single-Family Customers

Figure 5. Sewer Rate Changes from FY 2023 to FY 2030 for Single-Family Customers

Sewer Connection Fee
A sewer connection fee is a one-time charge assessed on new development or changes in use that result in additional demand on the City’s sanitary sewer system. The fee represents a proportional share of the cost to plan, design, construct, and maintain the sewer infrastructure capacity needed to serve new connections, including pipelines, lift stations, treatment capacity, and other system facilities. Unlike monthly sewer rates, which fund ongoing operation and maintenance of the system, connection fees are intended to recover the capital cost of system expansion so that growth pays its fair share of the infrastructure required to support it. Establishing and updating sewer connection fees ensures that the cost of growth is appropriately allocated to new users rather than being subsidized by existing ratepayers, thereby maintaining equity across customers and supporting the long-term financial sustainability of the sewer enterprise fund.

Sewer Connection Fee Methodology
Connection fees in California are typically developed based on one of three common methodologies:

Page 348 of 632 ends

Page 12 of 15 ends

• Buy-In Method: The Buy-In Method establishes a connection based on the value of the system’s existing capital assets and is typically most appropriate when a system’s current capacity is sufficient to serve both short-term and long-term projected demands.

The rationale underlying the Buy-In Method is that new customers should pay to buy into existing system capacity funded by past and current users. • Incremental Cost Method: The Incremental Cost Method establishes connection fees based on the cost of planned capital expenditures required to expand system capacity and is typically most appropriate when a system’s current capacity is already fully utilized by existing users. The rationale underlying the Incremental Cost Method is that new users should fund planned capital projects that are necessary to accommodate growth.
• Hybrid Method: The Hybrid Method establishes connection fees based on a combination of the Buy-In Method and the Incremental Cost Method. The Hybrid Method is typically most appropriate when some existing capacity is available to new users, but capacity expansion is still necessary to accommodate long-term demands.

Staff recommends the Buy-In for the City’s sewer connection fees, as the existing sewer system has remaining capacity to serve new customers. The Buy-In fee calculates the value of the existing sewer system and its remaining capacity based on the audited value of fixed assets provided by staff as of June 30, 2025 (end of FY 2025) and projected cash balances as of June 30, 2026 (end of FY 2026). Once the value of the existing system is calculated, the total system value is divided by the existing demand on the system, measured in EDUs (Equivalent Dwelling Unit). One EDU represents the average annual wastewater flow for one single-family account, and EDUs were calculated based on account and wastewater flow information provided by staff.

Proposed Sewer Connection Fees
A sewer connection fee survey was conducted to compare Pleasanton’s proposed connection fee for single-family customers with those of peer agencies in the Tri-Valley area. Sewer connection fees include both a local collection component and a regional treatment component. The regional treatment component, which currently accounts for about 97% of Pleasanton’s combined connection fee, is set by DSRSD and is outside the City’s control.

With the fee update, Pleasanton combined connection fees are expected to remain below Dublin and within the range of peer agencies in the Tri-Valley area. The comparison is shown in Figure 6 below.

Page 349 of 632 ends

Page 13 of 15 ends

Figure 6. Tri-Valley Sewer Connection Fee Comparison for Single-Family Customers

The current and proposed sewer connection fees are shown below. The connection fee per EDU is multiplied by the EDU ratio for each customer type to arrive at the proposed sewer connection fee for each customer. The EDU ratios are from the City’s existing fee schedule.

Staff recommends that the City Council approve and adopt the new connection fees shown in Table 7 below.

Page 350 of 632 ends

Page 14 of 15 ends

Table 7. Sewer Connection Fees Effective January 1, 2027

Next Steps
Following City Council action, staff will finalize the Rate Study and associated materials. The anticipated schedule is:
• July 2026: City Council approval of the final Rate Study and request to approve initiation of Proposition 218 rate notices.
• November / December 2026: Proposition 218 public hearing to consider adoption of

Page 351 of 632 ends

Page 15 of 15 ends

updated sewer rates.
• January 1, 2027: New sewer rates and connection fees take effect.

EQUITY AND SUSTAINABILITY
The City provides sewer collection as an essential service. Establishing reasonable and equitable sewer rates supports long-term fiscal sustainability of the Sewer Enterprise Fund, helps ensure the City can maintain, rehabilitate, and replace critical infrastructure, and aligns customer charges with the cost of providing service across customer classes.

OUTREACH
The City has proactively provided information on sewer-related activities and the sewer rate process through ongoing outreach efforts. Staff will continue communication through community events, flyers, webpages, social media, e-newsletter articles, targeted stakeholder outreach, bill messaging, and Proposition 218 notification mailers.

STRATEGIC PLAN ALIGNMENT
This item supports the citywide ONE Pleasanton Strategic Plan goal of Funding our Future, Strategy 3 - Evaluate and update enterprise revenue sources, including utility rates, connection fees, and user fees, to address growth and meet current needs.

FISCAL IMPACT
The Maintain Scenario financial plan requires approximately $27.4 million in additional rate revenue and $28.0 million in debt financing over FY 2026 through FY 2030 to fund increased Operations & Maintenance (43041202), Internal Service Fund - Repair and Replacements (43442201), planned capital improvements in Funds 431 and 432, and key financial performance metrics.

Approval of the proposed sewer rate structure will establish the revenue and fee framework needed to implement the Maintain Scenario. Final fiscal impacts will be presented in the completed Rate Study and subsequent Proposition 218 actions.

Prepared by: Submitted by: Approved by:

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

Interim City Manager

Attachments:

1. WRE Staff Report Preliminary Rates

2. WRE Technical Memo - Rates and Connection Fees May 14, 2026

3. Sewer Rates and Connection Fees Presentation

Page 352 of 632 ends

Water Resources Economics

Page 1 ends

Memo

To: Nick Ajluni, Assistant Director of Public Works – City of Pleasanton From: Nancy Phan, Principal Consultant – Water Resources Economics, LLC Date: April 1, 2026
Re: Sewer Rate Scenarios Technical Memo

INTRODUCTION

Water Resources Economics, LLC (WRE) was engaged by the City of Pleasanton (City) to conduct a sewer rate study to develop an updated multi-year schedule of sewer rates. The purpose of the study is to evaluate the financial condition of the sewer enterprise, ensure long-term financial sustainability, and establish rates that equitably recover the cost of providing service to all customer classes.

City staff is seeking City Council input on the proposed sewer rates, rate structure changes, and policy considerations to complete the sewer rate study process. The results of this analysis are intended to support the development of a sewer rate structure that is financially sufficient, cost-based, and consistent with the City’s policy objectives.

The proposed sewer rates have been developed with the following objectives:

• Maintaining financial sufficiency to support ongoing operations and maintenance (O&M) and capital improvement program (CIP) needs to implement the Sewer System Management Plan (SSMP) • Stabilizing system condition over the five-year planning horizon (FY 2026 to FY 2030) • Aligning City collection rates with cost-of-service principles • Simplifying the rate structure to improve transparency and consistency with peer agencies

SEWER FINANCIAL PLAN

Maintain Scenario and Funding Needs
At the February 17 Council meeting, the City Council selected the Maintain financial planning scenario, which is designed to stabilize the condition of the sewer system over a five-year period from FY 2026 through FY 2030. This scenario reflects a balanced approach that addresses critical near-term infrastructure needs while maintaining a manageable rate impact.

To meet the objectives of the Maintain scenario, the sewer enterprise requires additional funding from both rate revenue and debt financing sources. These funding levels are necessary to support ongoing operations, implement planned capital improvements, and maintain key financial performance metrics, such as reserve balances and debt coverage requirements (for proposed debt issuances).

The funding requirements for the Maintain scenario include:

• $27.4 million in additional rate revenue
• $28.0 million in debt financing

Financial Plan Changes
ATTACHMENT 1

Page 353 of 632 ends

City of Pleasanton
Sewer Rate Technical Memo

Water Resources Economics

Page 2 ends

Following Council direction, City staff refined the timing of O&M expenses, CIP implementation, and associated debt issuances to better align with bond advisor requirements and anticipated financing constraints. These changes were made to improve the financial feasibility of the plan while maintaining the overall level of investment in the system.

As a result, the timing of costs and debt issuance has been adjusted within the five-year planning period. However, total funding needs (additional rate revenue and proposed debt financing) remain unchanged. The objective of stabilizing system condition within the five-year planning period also remains unchanged. The updated financial plan represents a change in implementation timing, rather than a change in scope or level of service.

COST-OF-SERVICE METHODOLOGY

The cost-of-service analysis allocates the total costs of the City’s sewer collection system to customers based on their estimated contribution to wastewater flows. This approach is consistent with industry best practices and is intended to ensure that rates are proportional to the cost of providing service to each customer class.

Residential Customers
Residential wastewater flow is estimated using a combination of demographic and water usage characteristics.

Specifically, average household size by unit type is derived from American Community Survey (ACS) data and applied to each Residential customer class. This information is combined with a City-specific indoor water usage assumption of 51 gallons per capita per day to estimate total Residential wastewater flow. Indoor water usage patterns are the primary driver of wastewater flows for Residential customers.

Non-Residential Customers
Non-Residential wastewater flow is estimated using actual water usage data for FY 2025, which provides a representative basis for evaluating customer demand patterns. To isolate indoor water use, which most closely corresponds to wastewater flow, a return factor is applied based on the ratio of average winter water usage to average annual usage for Non-Residential customers.

Winter water usage is commonly used as a proxy for indoor demand because it excludes outdoor irrigation. This approach allows for a more accurate estimation of wastewater flows for Commercial/Industrial and Institutional customers.

Cost Allocation Results
Based on this methodology, total system costs are allocated to customer classes in proportion to their estimated wastewater flow contributions. The updated analysis reflects current usage patterns and results in a modest shift in cost responsibility from Residential and Institutional customers to Commercial/Industrial customers. This shift is primarily driven by updated water usage data and refined assumptions regarding estimated wastewater flow generation. The updated cost allocation aligns costs with sewer system usage for all customer classes.

PROPOSED SEWER RATE STRUCTURE CHANGES

The proposed sewer rate structure has been developed to align with cost-of-service principles while also simplifying the existing structure and improving consistency with peer agencies. The intent of these changes is to create a rate structure that is both equitable and easier for customers to understand.

Key changes to the rate structure include:

Page 354 of 632 ends

City of Pleasanton
Sewer Rate Technical Memo

Water Resources Economics

Page 3 ends

• Residential: alignment of Condo and Multi-Family rates into a single rate category • Commercial/Industrial: implementation of a single uniform collection rate across all Commercial classifications
• Institutional: continued differentiation of School rates based on Submetered and Not Submetered customers

These changes simplify the sewer rate structure while maintaining appropriate distinctions, which were justified by differences in usage/wastewater flow characteristics.

RUBY HILL DISCOUNT CONSIDERATIONS

Currently, customers in the Ruby Hill area receive a 10% discount on both City of Pleasanton collection charges and City of Livermore sewer charges. The discount represents a policy decision rather than a cost-of-service- based adjustment. If the City elects to continue providing this discount, it will result in an ongoing impact to the City’s General Fund of approximately $31,000 annually beginning in FY 2027. As part of the rate adoption process, the City may consider whether to continue, modify, or eliminate this discount.

PROPOSED SEWER RATES

The proposed sewer rates are designed to generate the revenue required under the financial plan while reflecting the updated cost-of-service allocation and proposed modifications to the sewer rate structure. The rates have been developed to ensure that the sewer enterprise remains financially sustainable over the study period.

CUSTOMER IMPACTS

Proposed Sewer Rates Current FY 2027 FY 2028 FY 2029 FY 2030Bi-Monthly Fixed Residential ChargesSingle Family $31.70 $57.03 $62.74 $69.02 $75.93Single Family w/ 2nd Residence$48.28 $96.53 $106.19 $116.81 $128.50Condo $21.77 $39.51 $43.47 $47.82 $52.61Multi-Family $16.58 $39.51 $43.47 $47.82 $52.61 Proposed Sewer Rates Current FY 2027 FY 2028 FY 2029 FY 2030Commercial/Industrial Variable Charges ($/ccf)All Commercial/Industrial Customers $4.08 $4.49 $4.94 $5.44Minimum Charge $16.58 $39.51 $43.47 $47.82 $52.61 Commercial (Current Classifications)Auto Steam Cleaning $1.79 $4.08 $4.49 $4.94 $5.44Bakery $1.78 $4.08 $4.49 $4.94 $5.44Laundry $1.79 $4.08 $4.49 $4.94 $5.44Grocery with Disposal $1.71 $4.08 $4.49 $4.94 $5.44Mortuary $2.09 $4.08 $4.49 $4.94 $5.44Restaurant, Fast Food $1.67 $4.08 $4.49 $4.94 $5.44Restaurant, Full Service $1.67 $4.08 $4.49 $4.94 $5.44All Other $1.51 $4.08 $4.49 $4.94 $5.44 Institutional Variable Charges ($/ccf)Schools, Submetered $1.46 $2.03 $2.24 $2.47 $2.72Schools, Not Submetered $0.95 $0.88 $0.97 $1.07 $1.18

Page 355 of 632 ends

City of Pleasanton
Sewer Rate Technical Memo

Water Resources Economics

Page 4 ends

Customer impacts were evaluated for both Residential and Non-Residential customers by comparing current bills to projected bills under the proposed rates. Collection charges reflect the City’s sewer collection costs only, while combined bills include both collection charges and treatment costs (from DSRSD or Livermore). Treatment costs are shown using current FY 2026 rates and proposed FY 2027 rates to provide a comprehensive view of total sewer service costs.

SEWER RATE SURVEY

A sewer rate survey was conducted to compare Pleasanton’s rates with those of peer agencies in the Tri-Valley area for Single-Family Residences, Commercial Full-Service Restaurants, and Institutional Schools Submetered customers. These comparisons provide context for evaluating the City’s sewer rates both before and after implementation of the proposed increases. The analysis indicates that, following implementation of the proposed rates, Pleasanton’s combined sewer bills are expected to remain within the range of peer agencies in the Tri-Valley area.

Residential CustomersCurrent Collection BillProposed Collection BillDifference ($)Current Combined BillProposed Combined BillDifference ($) Pleasanton / DSRSDSingle Family $31.70 $57.03 $25.33 $93.28 $122.61 $29.33Single Family w/ 2nd Residence$48.28 $96.53 $48.25 $156.56 $227.70 $71.14Condo $21.77 $39.51 $17.74 $68.46 $90.67 $22.21Multi-Family $16.58 $39.51 $22.93 $63.27 $90.67 $27.40Ruby Hill / LivermoreSingle Family $31.70 $57.03 $25.33 $166.68 $213.01 $46.33 Non-Residential CustomersAverage Bi-Monthly Use (ccf)
Current Collection BillProposed Collection BillDifference ($)Current Combined BillProposed Combined BillDifference ($) Auto Steam Cleaning24 $42.96 $97.92 $54.96 $242.16$315.36 $73.20Bakery 221 $393.38$901.68$508.30$2,227.68$2,903.94$676.26Laundry 20 $35.80 $81.60 $45.80 $105.40$157.60 $52.20Grocery with Disposal171 $292.41$697.68$405.27$1,515.06$2,067.39$552.33Mortuary 15 $31.35 $61.20 $29.85 $138.60$181.35 $42.75Restaurant, Fast Food97 $161.99$395.76$233.77$686.76$970.00$283.24Restaurant, Full Service154 $257.18$628.32$371.14$1,239.70$1,703.24$463.54All Other 94 $141.94$383.52$241.58$469.06$740.72$271.66Schools, Submetered172 $251.12$349.16 $98.04 $849.68$1,002.76$153.08Schools, Not Submetered1,394 $1,324.30$1,226.72($97.58)$6,175.42$6,523.92$348.50

Page 356 of 632 ends

City of Pleasanton
Sewer Rate Technical Memo

Water Resources Economics

Page 5 ends

Page 357 of 632 ends

Water Resources Economics

Page 1 ends

Technical Memorandum

To: Siew-Chin Yeong, Director of Public Works – City of Pleasanton From: Nancy Phan, Principal Consultant – Water Resources Economics, LLC Date: May 14, 2026
Re: Proposed Sewer Rates & Connection Fees Technical Memo

INTRODUCTION

Water Resources Economics, LLC (WRE) was engaged by the City of Pleasanton (City) to conduct a sewer rate study to develop an updated multi-year schedule of sewer rates and one-time sewer connection fees. The purpose of the study is to evaluate the financial condition of the sewer enterprise, ensure long-term financial sustainability, establish rates that equitably recover the cost of providing service to all customer classes, and establish fees that equitably recover capital costs of providing system capacity to new users.

City staff is seeking City Council input on the proposed sewer rate impacts and connection fees to complete the sewer rate study process. The results of this analysis are intended to support the development of a sewer rate and fee structure that is financially sufficient, cost-based, and consistent with the City’s policy objectives.

The proposed sewer rates and fees have been developed with the following objectives:
• Maintaining financial sufficiency to support ongoing operations and maintenance (O&M) and capital improvement program (CIP) needs to implement the Sewer System Management Plan (SSMP) • Stabilizing system condition over the five-year planning horizon (FY 2026 to FY 2030) • Aligning City collection rates with cost-of-service principles • Simplifying the rate structure to improve transparency and consistency with peer agencies • Updating connection fees to equitably recover costs imposed by new development

PROPOSED SEWER RATES

The proposed sewer rates are designed to generate the revenue required under the financial plan while reflecting the updated cost-of-service allocation and proposed modifications to the sewer rate structure as discussed during previous City Council meetings. The rates have been developed to ensure that the sewer enterprise remains financially sustainable over the study period.

Page 358 of 632 ends

City of Pleasanton
Sewer Rates & Connection Fees Technical Memo

Water Resources Economics

Page 2 ends

FIRST YEAR CUSTOMER IMPACTS

Proposed Sewer Rates Current FY 2027 FY 2028 FY 2029 FY 2030Commercial/Industrial Variable Charges ($/ccf)All Commercial/Industrial Customers $4.08 $4.49 $4.94 $5.44Minimum Charge $16.58 $39.51 $43.47 $47.82 $52.61 Commercial (Current Classifications)Auto Steam Cleaning $1.79 $4.08 $4.49 $4.94 $5.44Bakery $1.78 $4.08 $4.49 $4.94 $5.44Laundry $1.79 $4.08 $4.49 $4.94 $5.44Grocery with Disposal $1.71 $4.08 $4.49 $4.94 $5.44Mortuary $2.09 $4.08 $4.49 $4.94 $5.44Restaurant, Fast Food $1.67 $4.08 $4.49 $4.94 $5.44Restaurant, Full Service $1.67 $4.08 $4.49 $4.94 $5.44All Other $1.51 $4.08 $4.49 $4.94 $5.44 Institutional Variable Charges ($/ccf)Schools, Submetered $1.46 $2.03 $2.24 $2.47 $2.72Schools, Not Submetered $0.95 $0.88 $0.97 $1.07 $1.18 Residential CustomersCurrent Collection BillProposed Collection BillDifference ($)Current Combined BillProposed Combined BillDifference ($) Pleasanton / DSRSDSingle Family $31.70 $57.03 $25.33 $93.28 $122.61 $29.33Single Family w/ 2nd Residence$48.28 $96.53 $48.25 $156.56 $227.70 $71.14Condo $21.77 $39.51 $17.74 $68.46 $90.67 $22.21Multi-Family $16.58 $39.51 $22.93 $63.27 $90.67 $27.40Ruby Hill / LivermoreSingle Family $31.70 $57.03 $25.33 $166.68 $213.01 $46.33 Non-Residential CustomersAverage Bi-Monthly Use (ccf)
Current Collection BillProposed Collection BillDifference ($)Current Combined BillProposed Combined BillDifference ($) Auto Steam Cleaning24 $42.96 $97.92 $54.96 $242.16$315.36 $73.20Bakery 221 $393.38$901.68$508.30$2,227.68$2,903.94$676.26Laundry 20 $35.80 $81.60 $45.80 $105.40$157.60 $52.20Grocery with Disposal171 $292.41$697.68$405.27$1,515.06$2,067.39$552.33Mortuary 15 $31.35 $61.20 $29.85 $138.60$181.35 $42.75Restaurant, Fast Food97 $161.99$395.76$233.77$686.76$970.00$283.24Restaurant, Full Service154 $257.18$628.32$371.14$1,239.70$1,703.24$463.54All Other 94 $141.94$383.52$241.58$469.06$740.72$271.66Schools, Submetered172 $251.12$349.16 $98.04 $849.68$1,002.76$153.08Schools, Not Submetered1,394 $1,324.30$1,226.72($97.58)$6,175.42$6,523.92$348.50

Page 359 of 632 ends

City of Pleasanton
Sewer Rates & Connection Fees Technical Memo

Water Resources Economics

Page 3 ends

SEWER RATE SURVEY

A sewer rate survey was conducted to compare Pleasanton’s rates to those of peer agencies in the Tri-Valley area for Single Family residences, Commercial Full Service Restaurants, and Institutional Schools Submetered customers. These comparisons provide context for evaluating the City’s sewer rates both before and after implementation of the proposed increases. The analysis indicates that, following implementation of the proposed rates, Pleasanton’s combined sewer bills are expected to remain within the range of peer agencies in the Tri-Valley area.

Page 360 of 632 ends

City of Pleasanton
Sewer Rates & Connection Fees Technical Memo

Water Resources Economics

Page 4 ends

MULTI-YEAR SINGLE FAMILY CUSTOMER IMPACTS

Multi-year impacts on Single Family customers were evaluated by comparing historical bi-monthly bills with projected bi-monthly bills under the proposed rates. Pleasanton Collection charges represent the City’s sewer collection costs, and Treatment Passthrough charges represent DSRSD treatment costs. The total bill is the sum of these two charges.

From prior to FY 2019 through FY 2026, the average total bill increased from $77.28 to $91.95, with approximately 65% of the increase attributable to Treatment Passthrough charges from DSRSD. Overall, most historical bill increases have been driven by regional Treatment Passthrough cost increases outside the City’s control.

Pleasanton Collection charges have either remained unchanged (FY 2021 through FY 2023) or increased based on CPI (Consumer Price Index) adjustments to cover inflationary cost increases. However, CPI adjustments alone typically are not sufficient for new operating costs or CIP projects required to maintain the City’s sewer collection infrastructure.

Pleasanton Sewer Multi-Year Bi-Monthly Bill Impacts (Single Family) Pleasanton CollectionTreatment PassthroughTotal BillBi-Monthly Bill Change ($)Bi-Monthly Bill Change (%) Prior to FY 2019 $25.19 $52.09 $77.28FY 2019 $26.09 $53.94 $80.03 $2.75 3.6%FY 2020 $27.01 $55.84 $82.85 $2.82 3.5%FY 2021 $27.80 $57.46 $85.26 $2.41 2.9%FY 2022 $27.80 $58.36 $86.16 $0.90 1.1%FY 2023 $27.80 $59.53 $87.33 $1.17 1.4%FY 2024 $28.54 $58.22 $86.76 ($0.58) -0.7%FY 2025 $29.96 $59.97 $89.93 $3.18 3.7%FY 2026 (Current) $30.77 $61.58 $92.35 $2.42 2.7%FY 2027 (CPI Adj.) $31.70 $65.58 $97.28 $4.93 5.3%FY 2027 (Proposed) $57.03 $65.58 $122.61 $25.33 26.0%FY 2028 (Proposed) $62.74 $69.52 $132.26 $9.65 7.9%FY 2029 (Proposed) $69.02 $73.69 $142.71 $10.45 7.9%FY 2030 (Proposed) $75.93 $77.37 $153.30 $10.59 7.4%

Page 361 of 632 ends

City of Pleasanton
Sewer Rates & Connection Fees Technical Memo

Water Resources Economics

Page 5 ends

MULTI-YEAR SINGLE FAMILY RATE SURVEY

A sewer rate survey was conducted to compare historical and proposed Pleasanton rates to those of peer agencies in the Tri-Valley area for Single Family customers. Bi-monthly bills for each agency represent the sum of both collection and treatment charges. Historically, Pleasanton bills have been on the lower range of peer agencies, more comparable to DSRSD and significantly below Livermore. With the proposed rates Pleasanton bills are expected to remain below Livermore and within the range of peer agencies in the Tri-Valley area.

Pleasanton Sewer Multi-Year Rate Survey (Single Family) Pleasanton DSRSD Livermore FY 2023 $87.33 $82.13 $129.96FY 2024 $86.76 $82.58 $136.46FY 2025 $89.93 $86.03 $143.30FY 2026 (Current) $92.35 $88.34 $149.98FY 2027 (CPI Adj.) $97.28 $88.34 $149.98FY 2027 (Proposed) $122.61 $93.17 $155.98FY 2028 (Proposed) $132.26 $97.94 $162.22FY 2029 (Proposed) $142.71 $102.96 $168.70FY 2030 (Proposed) $153.30 $107.52 $175.46

Page 362 of 632 ends

City of Pleasanton
Sewer Rates & Connection Fees Technical Memo

Water Resources Economics

Page 6 ends

SEWER CONNECTION FEE METHODOLOGY

New customer connections to the City’s sewer system are subject to a connection fee, which is necessary to ensure that existing users are not unfairly burdened by costs incurred to provide capacity for new users. The overall purpose of a connection fee is to equitably recover capital costs incurred by the agency to provide sewer system capacity to new users. Connection fees in California are typically developed based on one of three common methodologies.

The three methodologies include:

1. Buy-In Method: The Buy-In Method establishes connection based on the value of the system’s existing capital assets and is typically most appropriate when a system’s current capacity is sufficient to serve both short-term and long-term projected demands. The rationale underlying the Buy-In Method is that new customers should pay to “buy-in” to existing system capacity funded by past and current users.

2. Incremental Cost Method: The Incremental Cost Method establishes connection fees based on the cost of planned capital expenditures required to expand system capacity and is typically most appropriate when a system’s current capacity is already fully utilized by existing users. The rationale underlying the Incremental Cost Method is that new users should fund planned capital projects that are necessary to accommodate growth.

3. Hybrid Method: The Hybrid Method establishes connection fees based on a combination of the Buy-In Method and the Incremental Cost Method. The Hybrid Method is typically most appropriate when some existing capacity is available to new users, but capacity expansion is still necessary to accommodate long- term demands.

WRE recommends the Buy-In for the City’s sewer connection fees as the existing sewer system has remaining capacity to serve new customers. The Buy-In fee calculates the value of the existing sewer system and its remaining capacity based on the audited value of fixed assets provided by staff as of June 30, 2025 (end of FY 2025) and projected cash balances as of June 30, 2026 (end of FY 2026). Once the value of the existing system is calculated, the total system value is divided by the existing demand on the system, measured in EDUs (Equivalent Dwelling Unit). One EDU represents the average annual wastewater flow for one Single Family account, and EDUs were calculated based on account and wastewater flow information provided by staff.

Page 363 of 632 ends

City of Pleasanton
Sewer Rates & Connection Fees Technical Memo

Water Resources Economics

Page 7 ends

PROPOSED SEWER CONNECTION FEES

A sewer connection fee survey was conducted to compare Pleasanton’s proposed connection fee for Single Family customers with those of peer agencies in the Tri-Valley area. Sewer connection fees include both a local collection component and a regional treatment component. The regional treatment component, which currently accounts for about 97% of Pleasanton’s combined connection fee, is set by DSRSD and is outside the City’s control. With the fee update, Pleasanton combined connection fees are expected to remain below Dublin and within the range of peer agencies in the Tri-Valley area.

Buy-In Fee ValueSewer Assets Value (RCLD)$65,468,002Plus Cash Balances $9,821,893Total Existing System Value$75,289,895Existing EDUs 33,467Connection Fee per EDU $2,250

Page 364 of 632 ends

City of Pleasanton
Sewer Rates & Connection Fees Technical Memo

Water Resources Economics

Page 8 ends

Sewer Connection Fees EDU RatioFactorCurrent FeeProposed FeeDifference ($)Difference (%)ResidentialSingle-Family Dwelling Unit1.0000per house/unit$556.24$2,250.00$1,693.76305%Townhome, Townhouse, Duet, Duplex1.0000 per unit $556.24$2,250.00$1,693.76305%Condominium 0.7000 per unit $417.18$1,575.00$1,157.82278%Apartment, Mobile Home0.7000 per unit $367.12$1,575.00$1,207.88329%Regular (low)Auditoriums 0.0091 per seat $5.06 $20.48 $15.42 305%Auto body shops/Auto dealers0.0005per square foot$0.28 $1.13 $0.85 302%Banks, Financial Offices 0.0003per square foot$0.16 $0.68 $0.52 322%Barber shops / Beauty shops0.0014per square foot$0.76 $3.15 $2.39 314%Bars, Cocktail lounges, taverns (w/o dining)0.0016per square foot$0.89 $3.60 $2.71 304%Bowling alleys 0.0014per square foot$0.78 $3.15 $2.37 304%Car washes 0.0077per square foot$4.29 $17.33 $13.04 304%Churches 0.0227 per seat $12.64 $51.08 $38.44 304%Delicatessen 0.0032per square foot$1.79 $7.20 $5.41 302%Dental Clinic 0.0041per square foot$2.28 $9.23 $6.95 305%Dry Cleaners 0.0020per square foot$1.13 $4.50 $3.37 298%Gas Stations 0.0021per square foot$1.19 $4.73 $3.54 297%General Retail/ Commercial0.0002per square foot$0.12 $0.45 $0.33 275%Gyms, Health Clubs 0.0019per square foot$1.06 $4.28 $3.22 303%Hospital 1.1364 per bed $632.09$2,556.90$1,924.81305%Hotels, Motels (no dining facilities)0.5909 per room$328.68$1,329.53$1,000.85305%Institutional (Resident) 0.4545 per bed $252.83$1,022.63$769.80 304%Laundries, coin-operated0.5909per machine$328.68$1,329.53$1,000.85305%Laundries, full service (commercial)0.0045per square foot$2.53 $10.13 $7.60 300%Market - Dry Goods 0.0009per square foot$0.48 $2.03 $1.55 322%Medical Clinic 0.0017per square foot$0.93 $3.83 $2.90 311%Medical/ Dental Complex0.0010per square foot$0.56 $2.25 $1.69 302%Office Buildings 0.0002per square foot$0.12 $0.45 $0.33 275%Parks/ RecCountry Club 0.3182per person$176.98$715.95$538.97 305%Picnic Park 0.0455per person$25.29 $102.38$77.09 305%Pool 0.0455per person$25.29 $102.38$77.09 305%Tennis Courts, w/ toilet & shower0.4545 per court$252.83$1,022.63$769.80 304%Plant Nursery 0.0004per square foot$0.20 $0.90 $0.70 350%Printers 0.0006per square foot$0.36 $1.35 $0.99 275%Public Agencies 0.0002per square foot$0.12 $0.45 $0.33 275%Recreational vehicle R.V. Park0.5454 per RV $303.39$1,227.15$923.76 304%Schools (excluding cafeteria)W/o showers 0.0682per student$37.92 $153.45$115.53 305%With showers 0.0909per student$50.56 $204.53$153.97 305%Theaters 0.0091 per seat $5.06 $20.48 $15.42 305%Veterinary Hospital 0.0015per square foot$0.86 $3.38 $2.52 292%Warehouse/distribution 0.0001per square foot$0.08 $0.23 $0.15 181%Regular (medium)Banquet Facilities - intermittent use0.0012per square foot$0.68 $2.70 $2.02 297%Business with cafeteria 0.0027per square foot$1.51 $6.08 $4.57 302%Cafeteria 0.0025per square foot$1.37 $5.63 $4.26 311%Hotels/Motels with dining facilities0.0027per square foot$1.51 $6.08 $4.57 302%Restaurant, Fast Food 0.0027per square foot$1.51 $6.08 $4.57 302%Restaurant, Full Service 0.0025per square foot$1.37 $5.63 $4.26 311%School with cafeteria 0.0027per square foot$1.51 $6.08 $4.57 302%Regular (high)Bakeries/ Donut Shops/ Ice Cream Shops0.0028per square foot$1.57 $6.30 $4.73 301%Car washes w/ steam cleaning0.0018per square foot$1.01 $4.05 $3.04 301%Markets with garbage disposals0.0077per square foot$4.29 $17.33 $13.04 304%Mortuaries 0.0009per square foot$0.48 $2.03 $1.55 322%

Page 365 of 632 ends

1 City of Pleasanton
City Council Meeting, Sewer Rates and Connection Fees – June 2, 2026 Agenda
• Rate Study Overview
• Cost-of-Service Methodology
• Proposed Rate Structure Changes
• Proposed Sewer Rates
• Customer Impacts and Rate Survey
• Sewer Connection Fees
• Next Steps and Schedule
2 1
2 Attachment 3

Page 366 of 632 ends

Rate Study Overview
3 Financial Plan
Develop funding plan
for SSMP / CIP
Determine annual
rate revenue needs to
maintain financial
sufficiency
Cost-of-Service
Allocate costs of
sewer system
Determine cost to
serve each customer
class
Rate Design
Develop sewer rate
structure most
suitable to meet
City’s goals and
objectives
Evaluate customer
and rate classes
Completion by
May/June 2026
Rate Adoption
Document rate study
in report
Adopt sewer rates
according to
Proposition 218
process
Completion by
November/
December 2026
We are here

SEWER RATES
3 4

Page 367 of 632 ends

Cost-of-Service Methodology
• The total costs for the City’s sewer collection system are allocated based on estimated wastewater flow by customer class
• Residential wastewater flow is estimated based on:
• Household size (household density analysis from census data, American Community Survey 2024) • City-specific indoor water usage in gallons per capita per day (51 gpcd) • Non-residential wastewater flow is estimated based on:
• Actual water usage data (FY 2025 actuals)
• Wastewater return factor based on average winter usage relative to average annual usage • Cost-of-service aligns costs with estimated wastewater contribution by class 5 Wastewater Flow Allocation by Class
6 Current Cost
Allocation
Proposed Cost
Allocation
Est. Wastewater
Flow (ccf)Customer Class

81.4%76.6%1,953,229Residential

17.7%22.9%583,308Commercial/Industrial

0.9%0.5%12,087Institutional
100.0%100.0%2,548,624Total
Compared to current allocation, costs shift from Residential and Institutional customers to Commercial/Industrial customers
5 6

Page 368 of 632 ends

Proposed Rate Structure Changes
Goals of proposed sewer rate structure:
• Simplify sewer rate structure / match to peer agencies • Align with cost-of-service principles
Proposed changes to sewer rate structure:
• Residential – align Condo and Multi-Family rates
• Commercial/Industrial – one collection rate, regardless of commercial classification • Institutional – continue differentiated school rates by Submetered and Not Submetered
7 Projected Sewer Revenue Adjustments 2027-2030
8 2030202920282027Fiscal Year
July 1, 2029July 1, 2028July 1, 2027January 1, 2027Date Effective 10%10%10%100%Total Rate Revenue Adjustment
10%10%10%88%Residential
10%10%10%159%Commercial/Industrial
10%10%10%9%Institutional
To ensure sufficient revenue to implement the financial plan, a 100% revenue adjustment is required effective January 1, 2027 followed by subsequent 10% annual adjustments through 2030.

For context, the City portion of the typical residential service sewer bill is $31.70 every other month, or $15.85 per month.
7 8

Page 369 of 632 ends

Proposed Sewer Rates – Residential
9 Proposed Sewer Rates Current FY 2027 FY 2028 FY 2029 FY 2030 Bi-Monthly Fixed Residential Charges
Single Family $31.70 $57.03 $62.74 $69.02 $75.93
Single Family w/ 2nd Residence $48.28 $96.53 $106.19 $116.81 $128.50 Condo $21.77 $39.51 $43.47 $47.82 $52.61
Multi-Family $16.58 $39.51 $43.47 $47.82 $52.61
Proposed Sewer Rates – Non-Residential
10 Proposed Sewer Rates Current FY 2027 FY 2028 FY 2029 FY 2030 Commercial/Industrial Variable Charges ($/ccf)
All Commercial/Industrial Customers $4.08 $4.49 $4.94 $5.44 Minimum Charge $16.58 $39.51 $43.47 $47.82 $52.61
Commercial (Current Classifications)
Auto Steam Cleaning $1.79 $4.08 $4.49 $4.94 $5.44
Bakery $1.78 $4.08 $4.49 $4.94 $5.44
Laundry $1.79 $4.08 $4.49 $4.94 $5.44
Grocery with Disposal $1.71 $4.08 $4.49 $4.94 $5.44
Mortuary $2.09 $4.08 $4.49 $4.94 $5.44
Restaurant, Fast Food $1.67 $4.08 $4.49 $4.94 $5.44
Restaurant, Full Service $1.67 $4.08 $4.49 $4.94 $5.44
All Other $1.51 $4.08 $4.49 $4.94 $5.44
Institutional Variable Charges ($/ccf)
Schools, Submetered $1.46 $2.03 $2.24 $2.47 $2.72
Schools, Not Submetered $0.95 $0.88 $0.97 $1.07 $1.18
9 10

Page 370 of 632 ends

Sewer Customer Impacts – Residential
11 Residential Customers Current
Collection Bill
Proposed
Collection Bill Difference ($) Current
Combined Bill
Proposed
Combined Bill Difference ($)
Pleasanton / DSRSD
Single Family $31.70 $57.03 $25.33 $93.28 $122.61 $29.33 Single Family w/ 2nd Residence $48.28 $96.53 $48.25 $156.56 $227.70 $71.14 Condo $21.77 $39.51 $17.74 $68.46 $90.67 $22.21
Multi-Family $16.58 $39.51 $22.93 $63.27 $90.67 $27.40
Ruby Hill / Livermore
Single Family $31.70 $57.03 $25.33 $166.68 $213.01 $46.33 Collection bill includes City of Pleasanton collection charges only Combined bill includes FY 2026 treatment costs (current) and FY 2027 treatment costs (proposed) Sewer Customer Impacts – Non-Residential
12 Non-Residential Customers
Average Bi-
Monthly Use
(ccf)
Current
Collection Bill
Proposed
Collection Bill Difference ($) Current
Combined Bill
Proposed
Combined Bill Difference ($)
Auto Steam Cleaning 24 $42.96 $97.92 $54.96 $242.16 $315.36 $73.20 Bakery 221 $393.38 $901.68 $508.30 $2,227.68 $2,903.94 $676.26 Laundry 20 $35.80 $81.60 $45.80 $105.40 $157.60 $52.20
Grocery with Disposal 171 $292.41 $697.68 $405.27 $1,515.06 $2,067.39 $552.33 Mortuary 15 $31.35 $61.20 $29.85 $138.60 $181.35 $42.75 Restaurant, Fast Food 97 $161.99 $395.76 $233.77 $686.76 $970.00 $283.24 Restaurant, Full Service 154 $257.18 $628.32 $371.14 $1,239.70 $1,703.24 $463.54 All Other 94 $141.94 $383.52 $241.58 $469.06 $740.72 $271.66 Schools, Submetered 172 $251.12 $349.16 $98.04 $849.68 $1,002.76 $153.08 Schools, Not Submetered 1,394 $1,324.30 $1,226.72 ($97.58) $6,175.42 $6,523.92 $348.50 Collection bill includes City of Pleasanton collection charges only Combined bill includes FY 2026 treatment costs (current) and FY 2027 treatment costs (proposed) 11 12

Page 371 of 632 ends

Sewer Multi-Year Bills – Single Family
13 Sewer Rate Survey – Single Family
14 Combined bill includes FY 2026 treatment costs (current) and FY 2027 treatment costs (proposed) 13 14

Page 372 of 632 ends

Sewer Rate Survey – Full Service Restaurant
15 Combined bill includes FY 2026 treatment costs (current) and FY 2027 treatment costs (proposed) Sewer Rate Survey – Schools Submetered
16 Combined bill includes FY 2026 treatment costs (current) and FY 2027 treatment costs (proposed) 15 16

Page 373 of 632 ends

Sewer Multi-Year Rate Survey – Single Family
17 SEWER CONNECTION FEES
17 18

Page 374 of 632 ends

What are Connection Fees?
• Connection fees are one-time charges for new development to connect to the City’s sewer system
• Establishes financial equity between existing and new customers • “Growth pays for growth”
19 Rates vs. Connection Fees
• Sewer rates are regulated under Prop 218; sewer connection fees are under Prop 26
• Sewer rates pay for costs of operating and maintaining the system for existing customers
• Sewer connection fees pay for capacity in the sewer system to serve new customers
20 19
20

Page 375 of 632 ends

Connection Fee Methodology
Buy-in Method
• Used for agencies with additional capacity in existing system • New customers “buy in” to system that existing customers built Incremental Cost Method
• Used for agencies that need to expand the system to serve new customers • New customers pay for capital projects built to serve them Hybrid Method
• Used for agencies that has existing capacity but requires additional capacity • New customers pay a portion to buy in to existing system ad a portion to build new capacity WRE recommends the Buy-in Method for the City, since there is additional capacity in the sewer system to serve new customers
21 Sewer Buy-in Fee Methodology
• Determine value of existing sewer system – assets based on Replacement Cost Less Depreciation (RCLD) and cash balances
• Define units of service related to existing customers in Equivalent Dwelling Units (EDUs)
• Revenues from buy-in fee can be used in the Sewer Enterprise Fund to benefit existing customers / offset future rates
22 21
22

Page 376 of 632 ends

Sewer Buy-in Fee Calculation
Customer accounts and wastewater flow from sewer rate study calculations/data 1 Single Family customer = 1 EDU, or 76 ccf of wastewater flow per year 23 Buy-In Component System Value
Sewer Assets Value (RCLD) $65,468,002
Plus Cash Balances $9,821,893
Total $75,289,895
Customer Class Accounts Wastewater
Flow (ccf)
Single Family
Flow per EDU EDUs
Residential 21,050 1,953,229 76 25,649
Commercial/Industrial 943 583,308 76 7,660
Institutional 16 12,087 76 159
Total 22,009 2,548,624 33,467
Sewer assets provided by City staff
Cash balance from sewer rate study
projections
Proposed Sewer Connection Fees
24 EDU ratios for Condominiums and Apartments/Mobile Homes have been updated to reflect the changes in the sewer rate structure (same rates and connection fees) Proposed sewer connection fees for Non-Residential customers are included in staff report
Buy-In Unit Cost Value
Existing System Value $75,289,895
Existing EDUs 33,467
Connection Fee per EDU $2,250
Sewer Connection Fees EDU Ratio Factor Current Fee Proposed Fee Difference ($) Single-Family Dwelling Unit 1.0000 per house/unit $556.24 $2,250 $1,693.76 Townhome, Townhouse, Duet, Duplex 1.0000 per unit $556.24 $2,250 $1,693.76 Condominium 0.7000 per unit $417.18 $1,575 $1,157.82
Apartment, Mobile Home 0.7000 per unit $367.12 $1,575 $1,207.88 23 24

Page 377 of 632 ends

Sewer Connection Fee Survey
25 Next Steps and Schedule
• Council Meeting – June 2 (today) – sewer rates and connection fees • Council Meeting – July – receive sewer rate study report and Proposition 218 notice • 45-day Public review period
• Council Meeting – November/December – Public Hearing to adopt sewer rates • New rates to go into effect if approved on January 1, 2027 26 25
26

Page 378 of 632 ends

Sanjay Gaur
Founder / President
[email protected]
Nancy Phan
Principal Consultant
[email protected]
27 27

Page 379 of 632 ends

Page 1 of 5 ends

Item #12

CITY COUNCIL AGENDA REPORT

June 2, 2026
City Manager

TITLE: PROVIDE DIRECTION ON A DRAFT RESOLUTION AND DRAFT ORDINANCE

FOR A POTENTIAL LOCAL TRANSIENT OCCUPANCY TAX BALLOT MEASURE FOR THE NOVEMBER 3, 2026, GENERAL MUNICIPAL ELECTION

SUMMARY
Since 2025, the City has been exploring a potential ballot measure to allow voters to consider increasing the Transient Occupancy Tax (TOT) as a way to secure new revenue for the City. If approved by the City Council for consideration during the November 2026 election, the proposed revenue measure would increase the City's TOT rate from 8 percent to 10 percent, effective July 1, 2027, and from 10 percent to 12 percent, effective July 1, 2028. The TOT increase would require a simple majority (50 percent plus one) affirmative vote of eligible voters. TOT is paid by hotel and motel guests, primarily out-of-town visitors rather than Pleasanton residents. The measure is expected to generate approximately $1.4 million per year in additional revenue once the 10 percent rate takes effect, and approximately $2.8 million per year once the 12 percent rate takes effect, all of which would remain in Pleasanton.

Approval of a TOT increase, combined with ongoing efforts to reduce spending, would help reduce the structural operating budget deficit and offset impacts on City services and programs that residents and business owners expect and rely on.

RECOMMENDATION
Staff recommends that the City Council provide direction on a draft resolution and draft ordinance for a potential local transient occupancy tax ballot measure for the November 3, 2026, general municipal election.

BACKGROUND
The City is facing a growing structural gap between revenues and expenditures, meaning that expenses have and will continue to grow faster than revenues. Current forecasts indicate an annual budget shortfall over the next several years, and the cumulative deficit is projected to grow over the next decade if additional revenue is not secured. At the City Council's direction, City staff has been working to proactively address the deficit with a combination of reducing spending and exploring new revenue opportunities.

Prior City Council Actions
In July 2025, following public engagement on the City's fiscal outlook, the City Council considered several structural options to address the General Fund deficit, including exploring a charter city transition. On August 19, 2025, staff presented a range of potential new or expanded revenue options. The City Council directed staff to focus on a Transient Occupancy Tax (TOT) increase and to begin stakeholder engagement with Pleasanton's hotel operators.

Page 380 of 632 ends

Page 2 of 5 ends

In late 2025, staff had informal conversations with Pleasanton hotel operators to understand the potential impacts of a TOT adjustment on the local lodging market. On February 3, 2026, staff returned to the City Council with rate scenarios and revenue estimates. The City Council directed staff to return with draft ballot language for a TOT measure at a target rate of 12 percent, phased over two years (10 percent effective July 1, 2027, and 12 percent effective July 1, 2028), for the November 3, 2026, general municipal election.

Importance of New Revenue
As documented in the FY 2026/27 Mid-Term Budget Update Report and General Fund Ten- Year Financial Forecast presented on May 19, 2026, the City faces a growing structural gap between revenues and expenditures. Under the baseline scenario, the forecast projects annual General Fund operating deficits ranging from approximately $4.4 million to $8.3 million over the forecast period; the projected structural deficits do not include the $44.0 million annual infrastructure funding gap identified in the Asset Management Plan. The proposed TOT measure is one component of the City's broader strategy to address this gap while continuing to deliver the services the Pleasanton community expects.

Regional Context
Pleasanton's TOT rate of 8 percent was established in 1983 and has not been adjusted since.

Pleasanton's rate is tied with Dublin and Livermore for the lowest in Alameda County, where rates currently range from 8 percent to 14 percent. Cities in Alameda County that have increased TOT rates in the past decade have generally moved to rates of 12 percent or higher.

Municipalities have limited options for raising revenues, and all cities in Alameda County face similar challenges related to rising operating costs and deferred maintenance.

DISCUSSION
Following the City Council's February 3, 2026, direction, staff, in coordination with the City Attorney's Office, have prepared the draft ballot language presented below. Because the proposed Transient Occupancy Tax (TOT) is paid by visitors staying in Pleasanton hotels and motels rather than by local residents, the development of this measure has focused on conversations with Pleasanton's hoteliers and on the legal and technical requirements of placing a general tax measure before the voters, rather than on broader community polling or outreach of the kind associated with a resident-facing tax.

Proposed Tax Measure
The staff recommendation is to place a Transient Occupancy Tax measure on the November 3, 2026, ballot. If approved, the ordinance would amend section 3.20.030 of the Pleasanton Municipal Code to increase the TOT rate from 8 percent to 10 percent effective July 1, 2027, and from 10 percent to 12 percent effective July 1, 2028. The TOT is collected by hotel and motel operators from guests at the time of payment and remitted to the City.

If the proposed tax measure is approved by voters, Pleasanton's TOT rate would rise to 10 percent on July 1, 2027, and to 12 percent on July 1, 2028, bringing the City into closer parity with neighboring Alameda County jurisdictions. Based on current TOT collections, staff projects the measure would generate approximately $1.4 million in additional annual revenue once the 10 percent rate takes effect and approximately $2.8 million in additional annual revenue once the 12 percent rate takes effect.

The measure would be approved if it receives a majority of affirmative votes from eligible City

Page 381 of 632 ends

Page 3 of 5 ends

voters (i.e., 50 percent plus one). Placing the TOT measure on the November ballot requires a two-thirds vote of the City Council (four council members).

The proposed tax would be a general tax paid primarily by visitors staying in Pleasanton hotels and motels. The additional tax revenue would remain in Pleasanton and could not be taken by the State of California for any reason or purpose.

Hotelier Conversations
Because the proposed measure is a tax on visitors rather than on Pleasanton residents, staff's engagement to date has been targeted. Staff had informal conversations with Pleasanton hotel operators to confirm that Pleasanton's 8 percent rate is at the low end of Alameda County and the broader Bay Area, and to surface practical considerations regarding a phased implementation schedule. These conversations informed the staff-recommended structure (8 percent to 10 percent to 12 percent) described above. Unlike the City's 2024 sales tax effort, staff have not conducted community-wide polling or a formal public engagement campaign on this measure, because the tax would be paid by overnight visitors rather than by local residents.

Proposed Ballot Question and Ballot Arguments
The proposed measure addresses areas identified by stakeholders and the City Council as top priorities and would maintain essential services, including police and fire protection. As highlighted in prior community engagement, public safety services are the highest-priority areas. It should be noted that approximately 50 percent of the City's General Fund budget is currently allocated to public safety.

Staff recommends that the City Council consider authorizing the following language for the ballot question. The language meets the specific legal and technical requirements of the Elections Code for placement of a Transient Occupancy Tax measure before the voters. The proposed ballot measure language reads as follows:

YES

Shall a measure be adopted to increase the City's
Uniform Transient Occupancy Tax paid by hotel
guests from 8% to 10% on July 1, 2027, and to 12% on
July 1, 2028, generating an estimated $1.4 to $2.8
million per year in additional revenue, that can be
used to maintain city services, such as: police and fire protection; park and street maintenance; recreation
programs; and other general government uses, until
ended by voters?

The draft resolution ordering the submission of the measure to the voters is attached as Attachment 1. The draft ordinance is attached as Attachment 2.

Next Steps
If the City Council chooses to direct staff to continue preparing the proposed ballot measure, staff will return at a subsequent meeting with a final resolution placing the measure on the November 3, 2026 ballot. That resolution will order submission of the measure to the voters,

Page 382 of 632 ends

Page 4 of 5 ends

approve the ordinance in final form, and direct the City Attorney to prepare an impartial analysis.

ALTERNATIVES
In addition to the recommended action, the City Council could provide alternative direction, including:
• Direct staff to develop an alternative rate or implementation schedule (e.g., a single-step increase to 12 percent, or a different target rate). This alternative is not recommended because the phased approach reflects stakeholder input received during 2025 engagement and balances revenue generation with operator and guest acceptance. • Direct staff not to proceed with a November 2026 TOT measure. This alternative would reverse prior City Council direction from February 3, 2026, and forgo projected additional annual revenue of up to $2.8 million beginning in FY 2028/29. This alternative is not recommended given the City's projected structural budget deficit.

EQUITY AND SUSTAINABILITY
Generating sufficient revenue and ensuring the City's fiscal sustainability allows the City to continue providing programs and services that benefit all residents. Unlike a sales tax or parcel tax, the TOT is paid primarily by visitors staying in Pleasanton hotels and motels, rather than by local residents or property owners. General Fund revenue generated by the measure would support City services that benefit all residents, including public safety, parks and recreation, infrastructure maintenance, community programs, and implementation of strategies from the City's Climate Action Plan (CAP) 2.0.

OUTREACH
Because the proposed measure is paid by visitors rather than by Pleasanton residents, staff has had targeted conversations with Pleasanton hotel operators to discuss the proposed rate structure and phased implementation. If the City Council provides direction to proceed, staff will develop community education materials in compliance with applicable laws governing public agency communications on ballot measures, and will coordinate with the City Attorney's Office on the content and timing of those materials.

STRATEGIC PLAN ALIGNMENT
This item aligns with the ONE Pleasanton strategic plan goal of Funding Our Future, which supports financial health and sound fiscal policies.

FISCAL IMPACT
There is no direct fiscal impact associated with receiving this report and providing direction. If the measure is subsequently placed on the ballot and approved by voters, the estimated annual revenue impact would be approximately $1.4 million beginning in FY 2027/28 (10 percent rate) and approximately $2.8 million beginning in FY 2028/29 (12 percent rate), based on current TOT collections and assuming stable hotel occupancy. As of the writing of this report, it is estimated that the measure will cost approximately $243,265 to $340,445 as part of the consolidated general municipal election, which will be allocated to the FY 2026/27 elections budget.

Page 383 of 632 ends

Page 5 of 5 ends

Prepared by: Submitted by: Approved by:

Aarón Zavala, Assistant to
the City Manager
Alexa Jeffress, Assistant City Manager

Interim City Manager

Attachments:

1. Attachment 1 - Draft Resolution TOT Measure

2. Attachment 2 - Draft TOT Measure Ordinance

3. Attachment 3 - TOT Presentation

Page 384 of 632 ends

ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANTON

ORDERING THE SUBMISSION TO THE QUALIFIED ELECTORS OF THE CITY

OF PLEASANTON A MEASURE TO APPROVE A UNIFORM TRANSIENT
OCCUPANCY TAX INCREASE; REQUESTING THAT THE ALAMEDA COUNTY

BOARD OF SUPERVISORS PERMIT CONSOLIDATION OF THE MEASURE

WITH THE PLEASANTON GENERAL MUNICIPAL ELECTION WITH THE STATEWIDE GENERAL ELECTION TO BE HELD ON THE SAME DATE;

SETTING PRIORITIES FOR FILING A WRITTEN ARGUMENT REGARDING A

CITY MEASURE AND DIRECTING THE CITY ATTORNEY TO PREPARE AN

IMPARTIAL ANALYSIS

WHEREAS, the City Council of the City of Pleasanton (“City Council”) desires to submit to the voters a measure to increase the City’s Uniform Transient Occupancy Tax in the General Municipal Election to be held on November 3, 2026; and

WHEREAS, on June 2, 2026, the City Council adopted Resolution No. 2026-__ calling for the holding of a General Municipal Election and Resolution No. 2026-__ requesting the Board of Supervisors of the County of Alameda to consolidate a General Municipal Election to be held on November 3, 2026, with a Statewide General Election to be held on that date pursuant to section 10403 of the Elections Code for the purpose of the election of a Mayor to a two-year term, and two Members of the City Council from Districts 1 and 3 to a four-year term.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PLEASANTON DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. Pursuant to the requirements of section 10403 of the Elections Code, the Board of Supervisors of the County of Alameda is hereby requested to consent and agree to the consolidation of a General Municipal Election to be held on November 3, 2026, with a Statewide General Election to be held on that date for the purpose of submitting to the qualified voters of the City the ballot measure set forth in the ballot question shown below in Section 4.

SECTION 2. Pursuant to California Constitution Article XIIIC, Section 2, Government Code Section 53724, and Elections Code Section 9222, the City Council of the City of Pleasanton hereby calls an election at which it shall submit to the qualified voters of the City a measure to increase the City's Uniform Transient Occupancy Tax from 8% to 10% on July 1, 2027, and to 12% on July 1, 2028 as authorized by Revenue and Taxation Code section 7280.

SECTION 3. The proposed complete text of the Ordinance submitted to the voters pursuant to Section 2 is set forth in Exhibit A. The City Council hereby approves the Ordinance, the form thereof, and its submission to the voters of the City at the November

Page 385 of 632 ends

Resolution No.

Page 2 ends

3, 2026 election, as required by Revenue and Taxation Code section 7280, subject to the approval of a majority of the voters voting on the measure.

SECTION 4. The City Council, pursuant to its right and authority, does order submitted to the voters at the General Municipal Election on November 3, 2026, the following question, which question shall require the approval of a majority (50%+1) of qualified electors casting votes to pass:

YES
Shall a measure be adopted to increase the City's
Uniform Transient Occupancy Tax paid by hotel guests
from 8% to 10% on July 1, 2027, and to 12% on July 1,
2028, generating an estimated $1.4 to $2.8 million per
year in additional revenue, that can be used to maintain city services, such as: police and fire protection; park and street maintenance; recreation programs; and other
general government uses, until ended by voters?
NO

SECTION 5. The ballots to be used at the election shall be in form and content as required by law. The City Clerk is authorized, instructed and directed to coordinate with the County of Alameda Registrar to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election. The City of Pleasanton recognizes that additional costs will be incurred by the County by reason of this consolidation and agrees to reimburse the County for any costs.

SECTION 6. That the Alameda County Registrar of Voters is authorized to canvass the returns of the municipal election. The election shall be held in all respects as if there were only one election.

SECTION 7. In all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections and that the City Clerk is authorized to transmit a certified copy of this resolution to the Alameda County Board of Supervisors and the Alameda County Registrar of Voters.

SECTION 8. Priorities for written arguments. [to be added to the final resolution]

SECTION 9. City Attorney Impartial Analysis. That the city council directs the city attorney to prepare an impartial analysis of the measure.

SECTION 10. The approval of this Resolution is exempt from the California Environmental Quality Act (Public Resources Code §§ 21000, et.seq., “CEQA,” and 14 Cal. Code Reg. §§ 15000 et. seq., “CEQA Guidelines”). The City's Uniform Transient

Page 386 of 632 ends

Resolution No.

Page 3 ends

Occupancy Tax increase to be submitted to the voters is a general tax that can be used for any legitimate governmental purpose; it is not a commitment to any particular action.

Accordingly, under CEQA Guidelines section 15378(b)(4), the tax is not a project within the meaning of CEQA because it creates a government funding mechanism that does not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment. If revenue from the tax were used for a purpose that would have either such effect, the City would undertake the required CEQA review for that particular project. Therefore, pursuant to CEQA Guidelines section 15060 CEQA analysis is not required.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Pleasanton at a regular meeting held on ____, 2026.

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 __ day of ____ 2026, by the following vote:

Ayes:

Noes:

Absent:

Abstain

_____________________________
Jocelyn Kwong, City Clerk

APPROVED AS TO FORM:

_______________________________
Daniel G. Sodergren, City Attorney

Page 387 of 632 ends

ATTACHMENT 2

EXHIBIT A
ORDINANCE NO.

AN ORDINANCE OF THE CITY OF PLEASANTON AMENDING SECTION 3.20.030 OF CHAPTER 3.20 OF TITLE 3 OF THE PLEASANTON MUNICIPAL CODE RELATED TO THE CITY’S UNIFORM TRANSIENT OCCUPANCY TAX ORDINANCE

THE PEOPLE OF THE CITY OF PLEASANTON DO HEREBY ORDAIN AS FOLLOWS:

SECTION 1. Section 3.20.030 of Chapter 3.20 of Title 3 of the Pleasanton Municipal Code is amended to read as follows:

3.20.030. Imposed—Rate.

For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the following amounts:

A. Eight percent (8%) of the rent charged by the operator for any period of occupancy commencing before July 1, 2027;

B. Ten percent (10%) of the rent charged by the operator for any period of occupancy commencing on or after July 1, 2027, and before July 1, 2028; and

C. Twelve percent (12%) of the rent charged by the operator for any period of occupancy commencing on or after July 1, 2028.

The tax constitutes a debt owed by the transient to the city which is extinguished only by payment to the operator or to the city. The transient shall pay the tax to the operator of the hotel at the time the rent is paid. If the rent is paid in installments, a proportionate share of the tax shall be paid with each installment.

The unpaid tax shall be due upon the transient's ceasing to occupy space in the hotel. If for any reason the tax due is not paid to the operator of the hotel, the tax administrator may require that such tax shall be paid directly to the tax administrator.

SECTION 2. This ordinance relates to the levying and collecting of the City’s Uniform Transient Occupancy Tax and shall take effect immediately.

SECTION 3. A summary of this ordinance shall be published once within fifteen (15) days after its adoption in “The Valley Times,” a newspaper of general circulation published in the City of Pleasanton, and the complete ordinance shall be posted for fifteen (15) days in the City Clerk’s office within fifteen (15) days after its adoption.

The foregoing Ordinance was approved and adopted by the voters of the City of Pleasanton on November 3, 2026.

______________________________
Jack Balch, Mayor

Page 388 of 632 ends

Ordinance No.

Page 2 of 2 ends

ATTEST:

____________________________
Jocelyn Kwong, City Clerk

APPROVED AS TO FORM:

____________________________
Daniel G. Sodergren, City Attorney

Page 389 of 632 ends

Transient Occupancy Tax (TOT) Ballot Measure
June 2, 2026
What is Transient Occupancy Tax (TOT)?
•A tax on short-term stays (30 days or less) at hotels, motels, and similar lodging
•Paid by visitors who stay in Pleasanton lodgings
9 Hotel and lodging guests pay TOT as
part of their stay; collected by
operators and remitted to the City
9 Revenue supports general City
services including public safety,
parks, recreation, streets, and
infrastructure

Page 390 of 632 ends

Background
• The City faces an ongoing annual structural budget deficit ranging from $4.4 million to $8.3 million
•$44M in annual infrastructure funding gap
•Current TOT rate of 8% unchanged since 1983
•August 2025: City Council directed staff to explore TOT increase •February 2026: City Council directed staff to develop ballot language with a phased 12% target rate
•Tonight: Provide direction on a draft resolution and draft ordinance for a potential local transient occupancy tax ballot measure for the November 3, 2026, general municipal election Community Input: FlashVote Survey
•67% of respondents support a TOT
increase
• 13% neutral; 20% oppose
•251 respondents (statistically valid)
•Top community priorities:
Physical safety and security (79%)
Parks, recreation, & library programs (54%)
Local businesses and services (53%)
Streets and sidewalks (51%)
Overall community appearance (51%)

Page 391 of 632 ends

Pleasanton’s Position: Regional Comparison
City Rate Updated Notes
Alameda 14% 2023
Hayward 14% Aug. 2025 72% Approval
Newark 14% Jan. 2025 80% Approval
Oakland 14% 2009
San Leandro 14% 2016
Union City 13.86% 2024 Annual adjustments
Berkeley 12%* 1991 *Plus 3% TID
Emeryville 12% 2002
Albany 10% 1958
Fremont 10% 2009
Dublin 8% 1982
Livermore 8% 1983
Pleasanton 8% 1983
•5 of 13 cities at 14%
•10 of 13 cities at 10% or higher
•Tri-Valley has lowest rates in
county
•Pleasanton rate unchanged
since 1983
•Recent increases: Newark
(Jan. 2025), Hayward (Aug.
2025)
Proposed Phased Approach
•Phased 1 (July 1, 2027): 8% to 10%
•Estimated additional revenue: +$1.4M annually
•Phase 2 (July 1, 2028): 10% to 12%
•Estimated additional revenue: +$2.8M annually (cumulative) •General tax: Requires majority voter approval (50%+1)
•Single ballot measure covers both phases
•Estimated election cost: $243,265 to $340,445

Page 392 of 632 ends

Draft Ballot Question
•Shall a measure be adopted to increase the City's Uniform Transient Occupancy Tax paid by hotel guests from 8% to 10% on July 1, 2027, and to 12% on July 1, 2028, generating an estimated $1.4 to $2.8 million per year in additional revenue, that can be used to maintain city services, such as: police and fire protection; park and street maintenance; recreation programs; and other general government uses, until ended by voters?
Next Steps
•July 2026
•Return to the City Council adopting a Resolution and approving the related Ordinance as to form placing the TOT increase item on the November ballot
•August 2026
•Deadline to submit ballot measure to Alameda County
•November 3, 2026
•General municipal election

Page 393 of 632 ends

Recommendation
Provide direction on a draft resolution and draft ordinance for a potential local transient occupancy tax ballot measure for the November 3, 2026, general municipal election.

Page 394 of 632 ends

Page 1 of 3 ends

Item #13

CITY COUNCIL AGENDA REPORT

June 2, 2026
Public Works - Utilities Division

TITLE: ADOPT A RESOLUTION APPROVING THE CITY OF PLEASANTON 2025

URBAN WATER MANAGEMENT PLAN AND WATER SHORTAGE

CONTINGENCY PLAN

SUMMARY
The City’s draft 2025 Urban Water Management Plan (UWMP) and Water Shortage Contingency Plan (WSCP) have been prepared in accordance with the California Urban Water Management Planning Act. These plans are required to be updated every five years and adopted by the City Council. They describe the City’s water deliveries and use, water supply sources, projected water demands through 2045, water supply reliability, and planned response actions during water shortages.

As an urban water supplier, the City must update and submit its 2025 UWMP, including the incorporated WSCP, to the California Department of Water Resources (DWR) by July 1, 2026.

RECOMMENDATION
Adopt a resolution approving the City of Pleasanton 2025 Urban Water Management Plan and Water Shortage Contingency Plan.

BACKGROUND
The California Urban Water Management Plan (UWMP) Act, enacted in 1983, requires urban water suppliers to prepare plans that assess long-term water supply reliability under normal, single-dry, and multiple-dry year conditions and demonstrate that adequate water supplies are available.

The Act has been updated periodically since its establishment, including through the Water Conservation Act of 2009 (SB X7-7) and the 2018 Water Conservation Legislation directives, which were first incorporated in the 2015 and 2020 UWMP updates, respectively. Since 2020, there have been no notable legislative changes to the UWMP requirements, except for minor revisions to definitions.

The City Council adopted the current UWMP (2020 UWMP) in June 2021. Preparation of the 2025 UWMP and Water Shortage Contingency Plan (WSCP) began in October 2025 and included coordination with Zone 7 Water Agency (Zone 7) and the other Tri-Valley retailers.

During the preparation of the 2025 UWMP, notices of preparation were sent to local agencies, Alameda County, and local organizations. The Draft 2025 UWMP and WSCP were made available for public review beginning May 7, 2026, and staff notified the previously contacted local agencies and organizations of their availability. In addition, this item was published in the newspaper for two consecutive weeks, as required by law, prior to the public hearing on the

Page 395 of 632 ends

Page 2 of 3 ends

adoption of the Draft 2025 UWMP and WSCP, included as Attachment 1.

DISCUSSION
The City’s water supply reliability is closely tied to Zone 7’s water supply reliability policy. Since 2023, Zone 7 has provided 100 percent of the City’s potable water supply and serves as the Tri-Valley groundwater manager. As a result, Zone 7’s seasonal and climatic supply constraints directly affect the City’s supply reliability and vulnerability to shortages.

The water quantity available to Zone 7 from its different supply sources varies annually depending on hydrologic conditions. Accordingly, as part of Zone 7’s 2025 UWMP preparation, Zone 7 reviewed historical data and developed projected yields for each water supply source under three conditions: (1) normal water year, (2) single-dry year, and (3) a consecutive five- year drought. This information, in turn, informed the City’s water supply reliability assessment.

The key outcome of the Draft 2025 UWMP and WSCP is that Zone 7 is expected to have adequate supply reliability to meet the City’s current and projected demands through 2045 under the majority of analyzed scenarios. The only scenario showing a small shortfall for Pleasanton (10 percent) is a five-year drought beginning in 2045, specifically in the fifth consecutive year of drought. This shortfall is considered manageable through conservation measures consistent with the WSCP. To strengthen delivery reliability, Zone 7’s current portfolio includes future water supply projects such as groundwater banking, water transfers, Site Reservoir, and the Chain of Lakes Project, as well as exploratory planning for potable reuse and desalination.

Each water shortage event is unique and requires a situational assessment, and the WSCP details the City’s strategic approach. Accordingly, during potential future water shortage events, staff will assess supply in close coordination with Zone 7, as outlined in the WSCP, and, when applicable, bring forward recommendations to the City Council based on the assessment findings.

Update Following Public Draft Release
Following the release of the Public Draft 2025 UWMP and WSCP, the State Division of Drinking Water (DDW) adjusted the City’s water loss standard from the original version shown in Table 4-3 from a “Real Water Loss Standard” of 18.8 gallons per service connection per day (gpscpd) shown, to 28.5 gpscpd. The final 2025 UWMP and WSCP will reflect the updated value in Table 4-3 and include minor associated language adjustments to Section 4.4 to reflect this updated information.

This DDW-approved adjustment to the City’s original real water loss standard followed an economic water loss model analysis provided by City staff, demonstrating that a higher standard was justified. The DDW-approved adjusted value will improve future compliance with the water loss standard and the Urban Water Use Objective requirement under the Making Water Conservation a Way of Life regulations.

EQUITY AND SUSTAINABILITY
Adoption of the draft 2025 UWMP and WSCP supports long-term water supply reliability and is consistent with Strategy WR-1 of the City’s Climate Action Plan 2.0.

Page 396 of 632 ends

Page 3 of 3 ends

OUTREACH
In accordance with the California UWMP Act, the City provided notice of preparation, notice of availability, and notice of public hearing to applicable agencies, Alameda County, and local organizations to provide an opportunity for review and comment. The draft 2025 UWMP and WSCP were made available for public review beginning May 7, 2026, and staff notified the previously contacted local agencies and organizations of their availability. In addition, this item was published in the newspaper for two consecutive weeks, as legally required, prior to the public hearing on adoption of the Draft 2025 UWMP and WSCP.

STRATEGIC PLAN ALIGNMENT
Approval of this action advances the citywide ONE Pleasanton Strategic Goal of Investing in our Environment by assessing the adequacy of the future water supply and by strategic planning for action implementation during a water shortage.

FISCAL IMPACT
The contract amount for preparation of the UWMP and WSCP is $99,000. Ongoing implementation activities over the next five years will include annual water supply and demand assessments and water shortage management activities, as needed. Funding for preparation and implementation of the UWMP and WSCP is provided through the Water Operations Fund 4204060-430101.

Prepared by: Submitted by: Approved by:

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

Interim City Manager

Attachments:

1. 2025 Urban Water Management Plan and Water Shortage Contingency Plan Resolution

2. 2025 Urban Water Management Plan Presentation

Page 397 of 632 ends

RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANTON TO APPROVE THE 2025 URBAN WATER MANAGEMENT PLAN AND WATER SHORTAGE CONTINGENCY PLAN
WHE
REAS, in “Urban Water Management Plan Act” (Cal Water Code 10610 - 10657) requires that specified urban water suppliers, such as the City of Pleasanton, adopt Urban Water Management Plans, and every five years thereafter adopt updated plans for the conservation and efficient use of water; and the “Water Conservation Act of 2009” (SBx7-7) specifies reductions of urban per capita water; and
WHE
REAS, the City most recently updated its Urban Water Management Plan in 2020 (Resolution No. 21-1221); and
WHE
REAS, the City has prepared a 2025 Urban Water Management Plan (UWMP) describing the City’s service area, existing and planned sources of water, reliability of the supply, water demand and use projections , water conservation and demand management measures , water shortage contingency analysis; and
WHE
REAS, the UWMP contains a Water Shortage Contingency Plan (WSCP) defining City actions to address stages of drought and catastrophic supply interruptions from power outage, earthquakes, or other disasters; and
WHE
REAS, the City prepared the UWMP and WSCP in coordination with other appropriate agencies; as well as provided notice to the public of its intent to adopt the documents, has made the draft documents available for public review, and has encouraged the public to provide comment; and
WHE
REAS, City properly noticed and held a public hearing on June 2, 2026 prior to adoption of said 2025 UWMP and WSCP for the purpose of allowing public comment.

NOW
, THEREFORE , THE CITY COUNCIL OF THE CITY OF PLEASANTON DOES RESOLVE, DECLARE, DETERMINE AND ORDER THE FOLLOWING:

SE
CTION 1. The City Council adopts the: (a) 2025 Urban Water Management Plan - Exhibit A and Appendices Exhibit B (b) Water Shortage Contingency Plan; and directs staff to file such documents as required with the California Department of Water Resources.

SE
CTION 2. This resolution shall become effective immediately upon its passage and adoption.

SE
CTION 3. 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 regular meeting held on June 2, 2026.

I, Jo
celyn 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 June 2, 2026, by the following vote:

Attachment 1

Page 398 of 632 ends

2 Ayes:

Noes:

Absent:

Abstain:

_____________________________
Jocelyn Kwong, City Clerk

APPROVED AS TO FORM:

_____________________________
Daniel G. Sodergren, City Attorney

Page 399 of 632 ends

EKI A80038.00 i Public Draft | May 2026
City of Pleasanton
2025 URBAN WATER MANAGEMENT PLAN
P.O. Box 520
Pleasanton, California

Public Draft | May 2026
EKI Environment & Water, Inc. C50124.00

EKI ENVIRONMENT & WATER, INC. www.ekiconsult.com
2001 Junipero Serra Blvd, Suite 300 • Daly City, CA 94014 Exhibit A

Page 400 of 632 ends

2025 URBAN WATER MANAGEMENT PLAN

Public Draft |May 2026

Prepared for:

City of Pleasanton
P.O. Box 520
Pleasanton, California 94566

Prepared by:

EKI Environment & Water, Inc.
2001 Junipero Serra Blvd., Suite 300
Daly City, California 94014
(650) 292-9100
www.ekiconsult.com
C50124.00

Page 401 of 632 ends

Public Draft | May 2026
i EKI Environment & Water, Inc.
2025 URBAN WATER MANAGEMENT PLAN
City of Pleasanton

TABLE OF CONTENTS
ES EXECUTIVE SUMMARY……………………………………………………………………………………………………….ES-1 1 PLAN INTRODUCTION ......................................................................................................... 1-1

1.1 Background and Purpose ................................................................................................. 1-1

1.2 UWMP Act and California Water Code ............................................................................ 1-1

1.3 UWMP Relationship with Other Efforts ........................................................................... 1-2

1.4 Special Considerations ..................................................................................................... 1-3

1.4.1 Demonstration of Consistency with the Delta Plan for Covered Actions .......................................................................................................... 1-3

1.4.2 Permitting for Ocean Desalination Projects ................................................. 1-3

1.5 Plan Organization ............................................................................................................. 1-4 2 PLAN PREPARATION ............................................................................................................ 2-1

2.1 Basis for UWMP Preparation ........................................................................................... 2-1

2.2 Basis for UWMP Reporting .............................................................................................. 2-2

2.2.1 Individual or Regional Plan ........................................................................... 2-2

2.2.2 Fiscal or Calendar Year and Units of Measure .............................................. 2-2

2.3 Coordination and Outreach ............................................................................................. 2-3

2.3.1 Wholesale and Retail Coordination .............................................................. 2-3

2.3.2 Coordination with Other Agencies and the Community .............................. 2-4

2.3.3 Notice to Cities and Counties ........................................................................ 2-4 3 SERVICE AREA DESCRIPTION ................................................................................................ 3-1

3.1 General Description ......................................................................................................... 3-1

3.2 Climate ............................................................................................................................. 3-3

3.3 Population and Demographics ......................................................................................... 3-6

3.3.1 Population ..................................................................................................... 3-6

3.3.2 Other Social, Economic, and Demographic Factors ...................................... 3-7

3.4 Land Uses ......................................................................................................................... 3-9

3.5 Water Distribution System ............................................................................................ 3-10

3.5.1 Potable Water Distribution System ............................................................ 3-10

3.5.2 Non-Potable Water Distribution System .................................................... 3-12 4 WATER USE CHARACTERIZATION ......................................................................................... 4-1

4.1 Non-Potable Versus Potable Water Use .......................................................................... 4-1

4.2 Water Use Sectors ........................................................................................................... 4-2

4.3 Past and Current Water Demand..................................................................................... 4-3

4.4 Distribution System Water Loss ....................................................................................... 4-5

4.5 Projected Water Demand ................................................................................................ 4-7

4.5.1 Basis of Demand Projections ........................................................................ 4-7

Page 402 of 632 ends

2025 Urban Water Management Plan
City of Pleasanton
Public Draft | May 2026
ii EKI Environment & Water, Inc.

4.5.2 Water Savings from Codes, Standards, Ordinances, or Transportation and Land Use Plans .............................................................. 4-7

4.5.3 Projected Total Water Demand .................................................................... 4-8

4.5.4 Water Use by Lower Income Households ................................................... 4-10

4.5.5 Characteristic Five-Year Water Use ............................................................ 4-10

4.6 Water Use Sectors Not Included in Demand Projections .............................................. 4-11

4.7 Climate Change Considerations ..................................................................................... 4-11

4.8 Coordinating Water Use Projections ............................................................................. 4-12

4.9 Urban Water Use Objective ........................................................................................... 4-12 5 SB X7-7 BASELINE, 2020 TARGET, AND 2025 REPORTING ...................................................... 5-1 6 WATER SUPPLY CHARACTERIZATION ................................................................................... 6-1

6.1 Purchased Water ............................................................................................................. 6-1

6.1.1 Water Supply Purchases from Zone 7 .......................................................... 6-1

6.1.2 Zone 7 Water Supply Sources ....................................................................... 6-1

6.2 Groundwater .................................................................................................................... 6-7

6.2.1 Basin Description and Status ........................................................................ 6-7

6.2.2 Pre-SGMA Groundwater Management ........................................................ 6-9

6.2.3 Groundwater Management Under SGMA .................................................... 6-9

6.2.4 Historical Pumping and Supply Sufficiency ................................................. 6-15

6.3 Surface Water ................................................................................................................ 6-15

6.4 Stormwater .................................................................................................................... 6-15

6.5 Wastewater and Recycled Water .................................................................................. 6-16

6.5.1 Recycled Water Coordination ..................................................................... 6-16

6.5.2 Wastewater Collection, Treatment, and Disposal ...................................... 6-17

6.5.3 Recycled Water System Description ........................................................... 6-21

6.5.4 Potential, Current, and Projected Recycled Water Uses ............................ 6-21

6.5.5 Actions to Encourage and Optimize Future Recycled Water Use............... 6-24

6.6 Desalinated Water Opportunities .................................................................................. 6-25

6.7 Water Exchanges and Transfers .................................................................................... 6-25

6.8 Future Water Projects .................................................................................................... 6-26

6.8.1 Supply Projects............................................................................................ 6-26

6.8.2 Infrastructure Projects ................................................................................ 6-29

6.9 Summary of Existing and Planned Sources of Water ..................................................... 6-31

6.10 Special Conditions .......................................................................................................... 6-33

6.10.1 Climate Change Effects ............................................................................... 6-33

6.10.2 Regulatory Conditions and Project Development ...................................... 6-33

6.11 Energy Intensity ............................................................................................................. 6-34 7 WATER SUPPLY RELIABILITY ASSESSMENT ........................................................................... 7-1

7.1 Constraints on Water Sources ......................................................................................... 7-2

7.1.1 Purchased Water Supply from Zone 7 .......................................................... 7-2

7.1.2 Groundwater ................................................................................................. 7-6

Page 403 of 632 ends

2025 Urban Water Management Plan
City of Pleasanton
Public Draft | May 2026
iii EKI Environment & Water, Inc.

7.1.3 Recycled Water ............................................................................................. 7-7

7.1.4 Water Quality ................................................................................................ 7-7

7.1.5 Climate Change ............................................................................................. 7-8

7.2 Reliability by Type of Year ................................................................................................ 7-9

7.3 Supply and Demand Assessment ................................................................................... 7-12

7.3.1 Normal Year Supply and Demand Assessment ........................................... 7-12

7.3.2 Single-Dry Year Supply and Demand Assessment ...................................... 7-12

7.3.3 Multiple Dry Year Supply and Demand Assessment ................................... 7-13

7.4 Water Supply Management Tools and Options ............................................................. 7-14

7.5 Drought Risk Assessment ............................................................................................... 7-15

7.5.1 Data, Methods, and Basis for Water Shortage Condition .......................... 7-15

7.5.2 Drought Risk Assessment Individual Water Source Reliability ................... 7-15

7.5.3 Drought Risk Assessment Total Water Supply and Use Comparison ......... 7-16 8 WATER SHORTAGE CONTINGENCY PLANNING ..................................................................... 8-1 9 DEMAND MANAGEMENT MEASURES .................................................................................. 9-1

9.1 Demand Management Measures for Retail Suppliers ..................................................... 9-1

9.1.1 DMM 1 – Water Waste Prevention Ordinances ........................................... 9-2

9.1.2 DMM 2 – Metering ....................................................................................... 9-3

9.1.3 DMM 3 – Conservation Pricing ..................................................................... 9-4

9.1.4 DMM 4 – Public Education and Outreach .................................................... 9-4

9.1.5 DMM 5 – Programs to Assess and Manage Distribution System Real Loss ............................................................................................................... 9-5

9.1.6 DMM 6 – Water Conservation Program Coordination and Staffing Support ......................................................................................................... 9-6

9.1.7 DMM 7 – Other Demand Management Measures ....................................... 9-6

9.2 Implementation over the Past Five Years ........................................................................ 9-9

9.3 Implementation to Achieve Water Use Targets and Urban Water Use Objectives ........ 9-9 10 PLAN ADOPTION, SUBMITTAL, AND IMPLEMENTATION ..................................................... 10-1

10.1 Inclusion of All 2025 Data .............................................................................................. 10-1

10.2 Notice of Public Hearing ................................................................................................ 10-1

10.2.1 Notice to Cities and Counties ...................................................................... 10-2

10.2.2 Notice to the Public .................................................................................... 10-2

10.3 Public Hearing and Adoption ......................................................................................... 10-2

10.4 Plan Submittal ................................................................................................................ 10-3

10.5 Public Availability ........................................................................................................... 10-3

10.6 Notification of Public Utilities Commission ................................................................... 10-3

10.7 Amending an Adopted UWMP or Water Shortage Contingency Plan ........................... 10-4 11 REFERENCES ..................................................................................................................... 11-1

Page 404 of 632 ends

2025 Urban Water Management Plan
City of Pleasanton
Public Draft | May 2026
iv EKI Environment & Water, Inc.

TABLES
Table 2-1 Public Water Systems (DWR Table 2-1) ........................................................................... 2-2 Table 2-2 Plan Identification (DWR Table 2-2)................................................................................. 2-2 Table 2-3 Supplier Identification (DWR Table 2-3) .......................................................................... 2-3 Table 2-4 Water Supplier Information Exchange (DWR Table 2-4) ................................................. 2-3 Table 3-1 Climate Characteristics .................................................................................................... 3-3 Table 3-2 Population – Current and Projected (DWR Table 3-1) ..................................................... 3-7 Table 3-3 Demographic Characteristics, 2020-2024 ........................................................................ 3-8 Table 4-1 2025 Actual Total Uses for Potable and Non-Potable Water (DWR Table 4-1) ............... 4-4 Table 4-2 Water Loss Audit Reporting Water Code Section 10631(d)(3)(A) (DWR Table 4-5) ........ 4-5 Table 4-3 Progress Towards 2028 Water Loss Standard (DWR Table 4-6) ...................................... 4-6 Table 4-4 Inclusion in Water Use Projections (DWR Table 4-3) ...................................................... 4-8 Table 4-5 Total Uses of Potable and Non-Potable Water - Projected (DWR Table 4-2) .................. 4-9 Table 4-6 Characteristic Five-Year Water Use (AFY) ...................................................................... 4-11 Table 5-1 SB X7-7 2020 Target Progress (DWR Table 5-1) ............................................................... 5-1 Table 6-1 Natural Sustainable Yield Demand Components ........................................................... 6-10 Table 6-2 Groundwater Volume Pumped (DWR Table 6-1) .......................................................... 6-15 Table 6-3 Wastewater Collected Within Service Area in 2025 (DWR Table 6-2) .......................... 6-19 Table 6-4 Wastewater Treatment and Outcomes Within UWMP Service Area in 2025 (DWR Table 6-3) ............................................................................................................. 6-20 Table 6-5 Recycled Water Direct Beneficial Uses Within Service Area (DWR Table 6-4) .............. 6-23 Table 6-6 2020 UWMP Recycled Water Use Projection Compared to 2025 Actual (DWR Table 6-5) ............................................................................................................. 6-24 Table 6-7 Methods to Encourage Future Recycled Water Use (DWR Table 6-6) .......................... 6-24 Table 6-8 Expected Future Water Supply Projects or Programs (DWR Table 6-7) ........................ 6-26 Table 6-9 Water Supplies – 2025 Actual (DWR Table 6-8) ............................................................ 6-31 Table 6-10 Source Water Desalination by Urban Water Supplier (DWR Table 6-8 DS)................... 6-32 Table 6-11 Water Supplies – Projected (DWR Table 6-9) ................................................................ 6-32 Table 6-12 Recommended Energy Reporting: Single Delivery Product, Total Utility Approach (DWR Table O-1B) .......................................................................................................... 6-35 Table 6-13 Recommended Energy Reporting: Wastewater and Recycled Water (DWR Table O-2) ............................................................................................................ 6-36 Table 7-1 Basis of Water Year Data (Reliability Assessment) (DWR Table 7-1) ............................... 7-9 Table 7-2 Basis of Water Year Data for Zone 7 Supplies ............................................................... 7-10 Table 7-3 Zone 7’s Water Supply Volume Available ...................................................................... 7-11 Table 7-4 Normal Year Supply and Demand Comparison (DWR Table 7-2) .................................. 7-12 Table 7-5 Single Dry Year Supply and Demand Comparison – District Total (DWR Table 7-3) ..... 7-13 Table 7-6 Five Consecutive Dry Years Supply and Demand Comparison (DWR Table 7-4) ........... 7-13 Table 7-7 Projected Zone 7 Supplies for Drought Risk Assessment .............................................. 7-16

Page 405 of 632 ends

2025 Urban Water Management Plan
City of Pleasanton
Public Draft | May 2026
v EKI Environment & Water, Inc.

Table 7-8 Five-Year Drought Risk Assessment Tables (DWR Table 7-5) ........................................ 7-17 Table 8-1 Cross-reference for Standard vs Supplier Shortage Levels (DWR Table 8-1) .................. 8-1 Table 8-2 Supply Augmentation and Other Actions (DWR Table 8-2) ............................................. 8-2 Table 8-3 Demand Reduction Actions (DWR Table 8-3) .................................................................. 8-3 Table 9-1 DMMs Available to Customers ........................................................................................ 9-7 Table 9-2 Implementation of Customer DMMs: 2021-2025 ........................................................... 9-9 Table 10-1 Notification to Cities and Counties (DWR Table 10-1) ................................................... 10-2

FIGURES
Figure 3-1 Pleasanton Water Service Area Boundary ...................................................................... 3-2 Figure 3-2 Average Monthly Climatic Conditions ............................................................................. 3-4 Figure 3-3 Temperature: Observed and Forecasted for Pleasanton’s Service Area ......................... 3-5 Figure 3-4 Precipitation: Observed and Forecasted for Pleasanton’s Service Area ......................... 3-5 Figure 3-5 Historical and Projected Population Served .................................................................... 3-7 Figure 3-6 Pleasanton’s Potable Water Distribution System .......................................................... 3-11 Figure 4-1 Total Uses for Potable and Non-Potable Water, 2022-2025 Actual ................................ 4-3 Figure 4-2 Total 2025 Water Demand by Customer Category .......................................................... 4-4 Figure 4-3 Total Uses of Potable and Non-Potable Water – Projected ............................................ 4-9 Figure 6-1 Zone 7’s Kern County Groundwater Banks: Annual Storage, Deposits, and Withdrawals ..................................................................................................................... 6-6 Figure 6-2 Groundwater Basins within Zone 7’s Service Area .......................................................... 6-9 Figure 6-3 Artificial Recharge, Pumping, and Net Cumulative Impacts to Operational Storage .... 6-12 Figure 6-4 Main Basin Groundwater Storage ................................................................................. 6-13 Figure 6-5 Sites Reservoir Project: Location and Facilities ............................................................. 6-28 Figure 6-6 Chain of Lakes: Existing and Planned Facilities .............................................................. 6-30 Figure 6-7 Water Supplies – Current and Projected ....................................................................... 6-33

APPENDICES
Appendix A DWR 2025 Urban Water Management Plan Checklist Appendix B DWR 2025 Urban Water Management Plan Tables
Appendix C Demonstration of Reduced Delta Reliance
Appendix D Water Shortage Contingency Plan
Appendix E DERWA Resolution No. 19-3
Appendix F Agency and Public Notices
Appendix G 2025 UWMP and WSCP Adoption Resolutions

Page 406 of 632 ends

2025 Urban Water Management Plan
City of Pleasanton
Public Draft | May 2026
vi EKI Environment & Water, Inc.

ABBREVIATIONS AND ACRONYMS
AB Assembly Bill
ABAG Association of Bay Area Governments
ACWD Alameda County Water District
ADU accessory dwelling unit
ADWF average dry weather flow
AF acre-feet
AFY acre-feet per year
AMI advanced meter infrastructure
AWWA American Water Works Association
BARR Bay Area Regional Reliability
CCR California Code of Regulations
cfs cubic feet per second
CGC California Government Code
CII commercial, industrial, and institutional
CIMIS California Irrigation Management Information System CIP capital improvement program
CMIP5 Coupled Model Intercomparison Project
COLs Chain of Lakes
COLCS Chain of Lakes Conveyance System
CVP Central Valley Project
CWC California Water Code
DBP disinfection byproducts
DCP Delta Conveyance Project
DCR Delivery Capability Report
DDW Division of Drinking Water
Delta Sacramento-San Joaquin River Delta
DERWA DSRSD-EBMUD Recycled Water Authority
DFW Department of Fish and Wildlife
DIM dedicated irrigation meter(s)
DMM demand management measure(s)
DOC Dissolved Organic Carbon
DOF California Department of Finance
DRA Drought Risk Assessment
DSRSD Dublin San Ramon Services District
DVWTP Del Valle Water Treatment Plant
DWR California Department of Water Resources
DYTP Dry Year Transfer Program
EBDA East Bay Dischargers Authority

Page 407 of 632 ends

2025 Urban Water Management Plan
City of Pleasanton
Public Draft | May 2026
vii EKI Environment & Water, Inc.

EBMUD East Bay Municipal Utility District
EO Executive Order
EPA United States Environmental Protection Agency
ETo reference evapotranspiration
°F degrees Fahrenheit
ft msl feet above mean sea level
GMP Groundwater Management Plan
GPCD gallons per capita per day
gpm gallons per minute
GPQ groundwater pumping quota
GPSCD gallons per service connection per day
GSA Groundwater Sustainability Agency(ies)
GSP Groundwater Sustainability Plan(s)
HOA Homeowners Association
IRWMP Integrated Regional Water Management Plan
kWh kilowatt hours
LAVWMA Livermore Amador Valley Water Management Agency
LF linear foot/feet
LOCA Localized Constructed Analogs
LWRP Livermore Water Reclamation Plant
μg/L micrograms per liter
M&I municipal and industrial
MCCWL Making Conservation a California Way of Life
MCL Maximum Contaminant Level
MFUV Microfiltration and Ultraviolet
MG million gallon(s)
MGD million gallon(s) per day
MGDP Mocho Groundwater Development Project
PFAS per- and polyfluoroalkyl substances
PG&E Pacific Gas and Electric
PMC Pleasanton Municipal Code
PPWTP Patterson Pass Water Treatment Plant
PWS Public Water System(s)
PWS ID public water system identification number
RCP Representative Concentration Pathway
RHNA Regional Housing Needs Allocation
RW Project Pleasanton’s Recycled Water Project
RWQCB Regional Water Quality Control Board
RWTF Regional Wastewater Treatment Facility

Page 408 of 632 ends

2025 Urban Water Management Plan
City of Pleasanton
Public Draft | May 2026
viii EKI Environment & Water, Inc.

SB Senate Bill
SB X7-7 Water Conservation Act of 2009
SBA South Bay Aqueduct
SCADA Supervisory Control and Data Acquisition
SFPUC San Francisco Public Utilities Commission
SFUV Sand Filtration and Ultraviolet
SGMA Sustainable Groundwater Management Act
SNMP Salt and Nutrient Management Plan
SRVRWP San Ramon Valley Recycled Water Program
SWC State Water Contractors
SWP State Water Project
SWRCB State Water Resources Control Board
T&O taste-and-odor
TDS total dissolved solids
TOC total organic carbon
TOD transit-oriented development
UV Ultraviolet
UWMP Urban Water Management Plan
UWUO Urban Water Use Objective
WDSCMP Water Distribution System Capacity Master Plan
WSCP Water Shortage Contingency Plan
WSE Water Supply Evaluation
WTP water treatment plant
WWTP wastewater treatment plant

Page 409 of 632 ends

2025 Urban Water Management Plan
Executive Summary City of Pleasanton
Public Draft | May 2026
ES-1 EKI Environment & Water, Inc.

EXECUTIVE SUMMARY

An Urban Water Management Plan (UWMP) helps water suppliers assess the availability and reliability of their water supplies and current and projected water use to help ensure reliable water service under different conditions. This water supply planning is especially critical for California currently, as climate change alters rainfall and snowfall (impacting water supply availability) and development occurs statewide (increasing the need for reliable water supplies). The Urban Water Management Planning Act requires urban water suppliers to develop UWMPs every five years. UWMPs evaluate conditions for the next 20 years, such that these regular updates ensure continued, long-term planning.

The City of Pleasanton (City) is a water retailer (also referred to as a retail urban water supplier, meaning it sells water directly to individual water users (e.g., residents and businesses). The City purchases most of its water supplies from Zone 7 Water Agency (Zone 7). Besides the City, Zone 7’s retailers consist of the California Water Service (Cal Water), the City of Livermore (Livermore), and the Dublin San Ramon Services District (DSRSD). Because the City provides water to more than 3,000 users, it is required to prepare a UWMP.

This Executive Summary serves as a Lay Description of the City's UWMP, as required by California Water Code §10630.5.

California Water Code Requirements
The California Water Code (CWC) documents specific requirements for California water suppliers. The Urban Water Management Planning Act is included in the California Water Code and specifies the required elements of a UWMP, including discussing an agency’s water system and facilities, calculating how much water its customers use (i.e., water demand) and how much it can supply, and det ailing how it would respond during a drought or other water supply shortage. Also, a UWMP must describe what specific coordination steps were taken to prepare, review, and adopt the plan. Relevant portions of the code are provided at the beginning of each section.

The Urban Water Management Planning Act has been revised over the years. The Water Conservation Act of 2009 (also known as SB X7-7) required retail water agencies to establish water use targets for 2015 and 2020 that would result in statewide water savings of 20 percent by 2020. In 2020, re tail water agencies were required to report on their compliance with SB X7-7.

The 2012 to 2016 drought led to further revisions to the Act to improve water supply planning for long-term reliability and resilience to drought and climate change. These revisions were formalized in the 2018 Water Conservation Legislation and include:
• Five Consecutive Dry-Year Water Reliability Assessment: Analyze water supply reliability for five consecutive dry years over the planning period of this UWMP (see Section 7). • Drought Risk Assessment: Assess water supply reliability from 2026 to 2030 assuming that the next five years are dry years (see Section 7).
 CWC §10630.5
Each plan shall include a simple lay description of how much water the agency has on a reliable basis, how much it needs for the foreseeable future, what the agency’s strategy is for meeting its water needs, the challenges facing the agency, and any other information necessary to provide a general understanding of the agency’s plan.

Page 410 of 632 ends

2025 Urban Water Management Plan
Executive Summary City of Pleasanton
Public Draft | May 2026
ES-2 EKI Environment & Water, Inc.
• Seismic Risk: Identify the seismic risk to the agency’s water facilities and have a plan to address identified risks; the region’s Local Hazard Mitigation Plan may address this requirement (see Section 8).
• Energy Use Information: If data are available, include reporting on the amount of electricity used to obtain, treat, and distribute water (see Section 6). • Water Shortage Contingency Plan (WSCP): Update the City’s plan to include an annual process for assessing potential gaps between planned water supply and demands; conform with the State’s standard water shortage levels (including a shortage level greater than 50%) for consistent messaging and reporting; and provide water shortage responses that are locally appropriate (see Section 8).
• Lay Description: Provide a lay description of the findings of the UWMP; this Executive Summary serves as the “Lay Description” for this 2025 UWMP.

Major components and findings of the City’s 2025 UWMP are summarized below.

City Water System
The City’s water facilities convey, store, and deliver drinking (i.e., potable) water to its customers, which include City residents and commercial customers, as well as customers in unincorporated Alameda County.

Currently, the City supplies all its drinking water with purchased treated water from Zone 7 . The Zone 7 water enters the City’s distribution system at multiple turnout points. The City owns and operates its own distribution system which includes an extensive network of pipelines and pumping facilities to deliver drinking water to its customers.

Besides drinking water, the City delivers recycled water to a portion of customers within its service area, mainly for landscape irrigation. Recycled water is highly treated wastewater that can be used for non-potable purposes like landscape irrigation, toilet flushing, and cooling. The City owns and operates a separate distribution system for recycled water, which includes storage , pumping, and a network of pipelines.

Water Use by City Customers
The City anticipates growth in the next 20 years, which would increase its demand for water. Thorough and accurate accounting of current and future water demands is critical for the City’s planning efforts. To continue delivering safe and reliable drinking water, the City must know how much water its customers currently use and how much they expect to use in the future. To help the City plan for enough water supply into the future, this UWMP uses a higher end estimate for future water demands.

The City worked closely with Zone 7 to estimate water demands through the year 2045. This process involved reviewing the City’s development and planning documents. By 2045, t he City’s potable and recycled water demand is expected to increase from 202 5 levels by approximately 41% and 25%, respectively.

City Water Supplies
Historically, the City’s water supplies consisted of purchases from Zone 7 (approximately 80% of supply in 2020) and groundwater pumped by the City (approximately 20 % of supply in 2020). In November 2022, Pleasanton stopped production in all three of its active wells due to the detection of per- and polyfluoroalkyl substances (PFAS). Between 2023 and 2025, the City purchased nearly 100% of its potable supply from Zone 7. The City and Zone 7 have partnered on the Joint Groundwater Wells project, which

Page 411 of 632 ends

2025 Urban Water Management Plan
Executive Summary City of Pleasanton
Public Draft | May 2026
ES-3 EKI Environment & Water, Inc.
will give the City the ability to once again access its full groundwater pumping quota (GPQ) . Zone 7’s supplies are made up of 80% imported water from the State Water Project, and the remainder comes from groundwater and local surface water.

The future reliability of Zone 7’s imported water is a concern. drought, sea level rise, and natural disasters threaten the Sacramento-San Joaquin Delta (Delta), a critical component of the delivery system bringing water to Zone 7. As a result, Zone 7 is participating in various projects that would provide alternate water supplies or protect the existing delivery system against threats. These projects include installing a pipeline system beneath the Delta , reusing highly treated wastewater, and participati ng in the construction of a new reservoir to store surplus water in wet years.

Based on Zone 7’s efforts and the City’s continued use of groundwater, the City ’s future water supplies are expected to keep pace with its water demands.

Conservation Target Compliance
In 2020, the City achieved its 20% reduction target in accordance with SB X7-7. This achievement was the result of continued water conservation by its customers following the 2014-2016 drought, in addition to using recycled water for irrigation in place of potable water.

City Water Service Reliability
The California Water Code asks agencies to evaluate their water service reliability by examining the impact of drought on their water supplies and comparing those reduced supplies to water demands. Specifically, agencies should calculate their water supplies during a single dry year and five consecutive dry years using historical records. For example, the City can estimate its supply during a single dry year by looking at how much supply was available during the driest year on record. If that historical “dry year” amount was reduced by 10%, then the City can conservatively assume a similar 10% reduction in supplies in a future dry year.

The City is well-positioned to withstand the effects of a single dry year and a five-year drought. The City’s drought risk was specifically assessed between 2026 and 2030, assuming that the next five years are dry years. Based on Zone 7’s ability to meet all its water demands during dry conditions, the City is expected to have enough w ater supplies to meet water demands for a five -year drought beginning in 202 6. This remains true for five -year droughts beginning in 2030, 2035, and 2040. However, in the fifth year of a drought starting in 2045, Zone 7 predicts a 14% supply shortfall to all of its retailers including the City. The City’s ability to supply its own groundwater and recycled water buffer that shortfall and the City projects a 10% supply shortfall in that scenario. With the implementation of its Water Shortage Contingency Plan (WSCP), the City can implement sufficient temporary water conservation to co mpletely reduce the shortfall.

Water Shortage Contingency Plan
A WSCP describes an agency’s plan for preparing for and responding to water shortages. The City updated its WSCP to include its process for assessing potential gaps between planned water supply and demands for the current year and the next potentially dry year. The City previously aligned its water shortage levels with the State for consistent messaging and planned for locally appropriate water shortage responses. The WSCP may be used for foreseeable and unforeseeable events and is adopted concurrently with this UWMP by separate resolution to allow for updates as conditions change.

Page 412 of 632 ends

2025 Urban Water Management Plan
Executive Summary City of Pleasanton
Public Draft | May 2026
ES-4 EKI Environment & Water, Inc.

UWMP Preparation, Review, and Adoption
The City developed this 202 5 UWMP in coordination with Zone 7 and the public. While preparing its UWMP, the City notified other stakeholders ( e.g., Alameda County, Cal Water, Livermore, DSRSD) of its preparation, its availability for review, and the public hearing prior to adoption. The City encouraged community participation in the development of the 202 5 UWMP using newspaper advertisements and web-based communication. These public notices included the time and place of the public hearing, as well as where the plan would be available for public inspection.

The public hearing provided an opportunity for the City ’s water users and the public to become familiar with the 2025 UWMP and ask questions about the City’s water supply, its continuing plans for providing a reliable, safe, high -quality water supply, and its plans to address potential water shortages. Following the public hearing, the City Council plans to adopt the 2025 UWMP on June 2, 2026. A copy of the adopted UWMP will be submitted to the Department of Water Resources and will be available on the City’s website (www.PleasantonWaterConservation.com).

Page 413 of 632 ends

Section 1 2025 Urban Water Management Plan
Plan Introduction City of Pleasanton
Public Draft | May 2026
1-1 EKI Environment & Water, Inc.
1 PLAN INTRODUCTION
This section provides an overview of the City of Pleasanton ’s (Pleasanton, or City) 2025 Urban Water Management Plan (UWMP or Plan), including the Plan’s purpose, its relationship to the California Water Code (CWC) and to other local and regional planning efforts, its contents, and special considerations.

This 2025 UWMP has been prepared jointly by City staff and EKI Environment & Water (EKI), in accordance with the California Department of Water Resources (DWR) 2025 UWMP Guidebook.1

1.1 Background and Purpose
The City is an urban retail water supplier that distributes water directly to individual water users (e.g., residents and businesses). The City purchases most of its supply from an urban wholesale water supplier, Alameda County Flood Control District Zone 7 (Zone 7 Water Agency [ Zone 7]). In addition to the City, Zone 7 also supplies wholesale water to several other retailers: the California Water Service -Livermore District (Cal Water), City of Livermore (Livermore), and Dublin San Ramon Services District (DSRSD).

This UWMP is a foundational document and information source that reflects Pleasanton’s historical and projected water demands, water supplies, supply reliability and potential vulnerabilities, water shortage contingency planning, and demand management programs. Among other purposes , this UWMP may be used as:
• A long-range planning document for water supply reliability and system planning; and • A source for data on population, housing, water demands, water supplies, and capital improvement projects used in:
- Regional water resource management plans prepared by wholesale water suppliers and other regional planning authorities (as applicable),
- General Plans prepared by cities and counties, and
- Statewide and broad regional water resource plans prepared by DWR, the State Water Resources Control Board (SWRCB), or other state agencies.

This Plan is an update to Pleasanton’s 2020 UWMP, which was adopted in 2021. This 2025 UWMP retains information from the 2020 UWMP that remains current and relevant, incorporates updates, and includes additional information required by subsequent amendments to the Urban Water Management Planning Act ( UWMP Act) (CWC §10610-10657). Although this Plan is an update to the 2020 UWMP, it was developed to be a self -contained, stand -alone document and does not require readers to reference information contained in previous UWMP updates.

1.2 UWMP Act and California Water Code
The UWMP Act requires urban water suppliers to prepare an UWMP every five years and to submit this plan to DWR, the California State Library, and any city or county within which the supplier provides water supplies. All urban water suppliers (either publicly or privately owned) in California are required to prepare a UWMP if they directly or indirectly supply municipal water to more than 3,000 customers or more than 3,000 acre-feet per year (AFY) (CWC §10617).

Initially enacted in 1983 , the UWMP Act has been amended over time in response to water resource s challenges and planning imperatives confronting California. A significant amendment was made in 2009

1 The Final 2025 UWMP Guidebook is available at: https://data.cnra.ca.gov/dataset/2025 -uwmp-reporting

Page 414 of 632 ends

Section 1 2025 Urban Water Management Plan
Plan Introduction City of Pleasanton
Public Draft | May 2026
1-2 EKI Environment & Water, Inc.
following the Governor’s call for a statewide reduction in urban water use, referred to as the Water Conservation Act of 2009 or Senate Bill (SB) X7-7. This amendment required urban retail water suppliers to establish water use targets for 2015 and 2020 that would result in statewide water savings of 20 % by 2020. To be eligible for state grants or loans , urban retail water suppliers were required to comply with SB X7-7 through reporting progress toward meeting SB X7-7 water use targets in 2015 and 2020 UWMPs.

Section 5 of this Plan addresses this requirement.

In 2016, Governor Brown signed Executive Order (EO) B -37-16 Making Conservation a California Way of Life (MCCWL). Subsequently, the Legislature passed SB 606 and Assembly Bill (AB) 1668, which added new drought planning requirements, including:
1) Additional Water Shortage Contingency Plan (WSCP) requirements (CWC §10640), 2) Drought risk assessments (DRAs) to assess water supply reliability in UWMPs for a drought period lasting five consecutive water years (CWC §10635(b)), and 3) Annual water supply and demand assessments to determine water supply reliability for the current year and one subsequent dry year (CWC §10632(a)).

These elements are included in Section 7 and Section 8 of this Plan. Additionally, SB 606/AB 1688 set new requirements for urban water suppliers to further increase water use efficiency beyond SB X7-7.

Beginning in 2024, agencies were required to report an annual Urban Water Use Objective (UWUO).

Because compliance with the UWUO requirements falls under the authority of the SWRCB, it is not included in this Plan. Section 4.9 of this Plan documents Pleasanton ’s continued compliance with the UWUOs.

The UWMP Act contains numerous other requirements that a UWMP must satisfy. Appendix A lists each of these requirements and where in the Plan they are addressed.

1.3 UWMP Relationship with Other Efforts
This Plan provides information specific to water management and planning within Pleasanton’s service area. However, water management does not happen in isolation; there are other planning processes that integrate with the UWMP to accomplish urban planning. Some of these relevant planning documents include:
• Plan Bay Area. Jointly developed by the Association of Bay Area Governments (ABAG) and the Metropolitan Transportation Commission, Plan Bay Area guides transit-oriented investments related to public transit, housing, land use, and sustainability across the nine-county San Francisco Bay Area. While Plan Bay Area 2050 is the most recent update, which involves a planning horizon through the year 2050, Plan Bay Area 2040 is referenced within this UWMP, as further explained in Section 3.3.
• Pleasanton General Plan 2005-2025: Land Use Element. The General Plan summarizes the City’s historical and existing land uses and describes areas of special interest for ongoing development. The General Plan also provides policies and guidance for future development, including specific plans for individual projects and general guidance for encouraging sustainable growth while preserving Pleasanton’s residential neighborhoods and open space. • Pleasanton 2023-2031 Housing Element. The City’s 2023-2031 Housing Element evaluates existing housing stock and inventories sites suitable for potential housing development. The 2023-2031 Housing Element compares the City’s available housing supply to its assigned share of the Regional Housing Needs Allocation (RHNA) and outlines a rezoning program to accommodate anticipated future housing needs in the City.

Page 415 of 632 ends

Section 1 2025 Urban Water Management Plan
Plan Introduction City of Pleasanton
Public Draft | May 2026
1-3 EKI Environment & Water, Inc.
• Pleasanton 2024 Water Distribution System Capacity Master Plan. The City’s Water Distribution System Capacity Master Plan (WDSCMP) identifies recommended capital improvements to the existing potable water distribution system to maintain the City’s current level of service and support future growth through 2045. The WDSCMP relies on a hydraulic model of the distribution system to evaluate system performance under projected water demand growth and various supply scenarios.

Prepared in coordination with the City’s Public Works Department, t his Plan is integrated with the City’s broader planning efforts. As further described in Section 2.3.1, Pleasanton also coordinated with its wholesale water supplier, Zone 7, to support consistency between their respective 2025 UWMPs.

1.4 Special Considerations
This Plan includes information beyond the requirements of the UWMP Act to support other regulatory processes that rely on UWMP data, including the Delta Plan and permitting for ocean desalination projects.

1.4.1 Demonstration of Consistency with the Delta Plan for Covered Actions The Sacramento-San Joaquin Delta (Delta) Reform Act of 2009 established the Delta Stewardship Council to create a comprehensive, long-term, legally enforceable plan to guide management of the Delta’s water and environmental resources (i.e., the Delta Plan). The Delta Reform Act set the foundation for state policy to reduce reliance on the Delta in meeting future water supply needs by diversifying water supply portfolios through actions such as improved water use efficiency, water reuse, advanced water technologies, and other regional water supply projects.

Further, the Delta Reform Act established a process for demonstrating consistency of a proposed project (a “covered action”) with the Delta Plan. Covered actions may include: (1) a multi-year water transfer, (2) a conveyance facility, or (3) a new diversion that involves transferring water through, exporting water from, or using water in the Delta.

Though not required under the UWMP Act, for urban water suppliers that anticipate participating in or receiving water from proposed project that is considered a covered action, DWR’s UWMP Guidebook recommends UWMPs include information to support the certification process to demonstrate consistency with Delta Plan Policy WR P1: Reduce Reliance on the Delta Through Improved Regional Water Self- Reliance (California Code of Regulations [CCR], Title 23, §5003).

The City’s wholesale water supplier, Zone 7, is a contractor of the State Water Project (SWP) and, thus, relies on the Delta. Through Zone 7, the City anticipates participating in a covered action and, therefore, is required to demonstrate reduced Delta reliance. While Zone 7 imports about 80% of its water in a normal year from the SWP, it is pursuing various supply augmentation and demand management efforts to reduce reliance on the Delta. Supply-side efforts are further discussed in Section 6 of this UWMP, which addresses existing and proposed projects that improve regional self -reliance. Also, Section 9 describes demand management measures (DMMs) that the City has implemented. Appendix C demonstrates the City’s consistency with Delta Plan Policy WR P1.

1.4.2 Permitting for Ocean Desalination Projects
California’s Water Supply Strategy: Adapting to a Hotter, Drier Future updates state priorities to address water supply shortages due to long -term drought and the accelerating impacts of climate change, including identifying opportunities to access new water sources such as ocean desalination. To support permitting for ocean desalination projects, the Seawater Desalination Siting and Streamlining Report to

Page 416 of 632 ends

Section 1 2025 Urban Water Management Plan
Plan Introduction City of Pleasanton
Public Draft | May 2026
1-4 EKI Environment & Water, Inc.

Expedite Permitting recommends that UWMPs clearly demonstrate the need for future or proposed ocean desalination projects.

As discussed in Section 6.6, Pleasanton does not anticipate pursuing ocean desalination in the planning horizon of this UWMP.

1.5 Plan Organization
This Plan is organized based on the sequence outlined in DWR’s 2025 UWMP Guidebook and includes the following sections:
• Executive Summary – including a lay description of the UWMP and includes information related to water service reliability and potential issues and strategies for managing reliability risks. • Section 1 Plan Introduction
• Section 2 Plan Preparation
• Section 3 Service Area Description
• Section 4 Water Use Characterization
• Section 5 SB X7-7 Baseline, 2020 Target, and 2025 Reporting • Section 6 Water Supply Characterization
• Section 7 Water Supply Reliability Assessment
• Section 8 Water Shortage Contingency Planning
• Section 9 Demand Management Measures
• Section 10 Plan Adoption, Submittal, and Implementation • Appendices – including supporting documentation and supplemental information UWMP Act excerpts are included in text boxes at the beginning of relevant sections.

Per CWC §10644(a)(2), this Plan incorporates DWR standardized 2025 UWMP tables for reporting water use and supply information consistent with the UWMP Act. In addition, tables and figures beyond DWR’s standard set are included as appropriate throughout to provide further context and connection to the City’s related plans and efforts . To distinguish content related to DWR’s standardized tables, the companion DWR table number is included in table titles throughout the Plan for accessible cross - reference.

Consistent with DWR’s recommendation in the 2025 UWMP Guidebook, the City has included a complete checklist of specific UWMP requirements and a copy of relevant standard reporting tables to assist DWR’s review (Appendix A and Appendix B).

Page 417 of 632 ends

Section 2 2025 Urban Water Management Plan
Plan Preparation City of Pleasanton
Public Draft | May 2026
2-1 EKI Environment & Water, Inc.
2 PLAN PREPARATION
This section describes the basis for prepar ing the City’s 2025 UWMP and WSCP, the basis for reporting throughout the Plan, and related coordination and outreach conducted during the Plan’s development.

2.1 Basis for UWMP Preparation

Public Water Systems (PWS) provide potable ( drinking) water for human consumption . The SWRCB’s Division of Drinking Water (DDW) regulates PWSs and requires that suppliers report water use and other relevant PWS information via the electronic Annual Reports to the Drinking Water Program. Among other purposes, the State uses this information to determine whether a water supplier meets the definition of an “urban water supplier” and is subject to the requirements of the UWMP Act.

In 2025, Pleasanton distributed 12,663 AFY of potable water to 22,370 accounts thro ugh its PWS (Table 2-1) and is, therefore, required to prepare a UWMP.
 CWC §10617
“Urban water supplier” means a supplier, either publicly or privately owned, providing water for municipal purposes either directly or indirectly to more than 3,000 customers or supplying more than 3,000 acre- feet of water annually. An urban water supplier includes a supplier or contractor for water, regardless of the basis of right, which distributes or sells for ultimate resale to customers. This part applies only to water supplied from public water systems subject to Chapter 4 (commencing with Section 11 6275) of Part 12 of Division 104 of the Health and Safety Code.
 CWC §10608.12
(t) “Urban retail water supplier” means a water supplier, either publicly or privately owned, that directly provides potable municipal water to more than 3,000 end users or that supplies more than 3,000 acre- feet of potable water annually at retail for municipal purposes.
(w) “Urban wholesale water supplier” means a water supplier, either publicly or privately owned, that provides more than 3,000 acre-feet of water annually at wholesale for potable municipal purposes.  CWC §10620
(b) Every person that becomes an urban water supplier shall adopt an urban water management plan within one year after it has become an urban water supplier.
 CWC §10621
(a) Each urban water supplier shall update its plan at least once every five years on or before July 1, in years ending in six and one, incorporating updated and new information from the five years preceding each update.  California Health and Safety Code §116275
(h) “Public Water System” means a system for the provision of water for human consumption through pipes or other constructed conveyances that has 15 or more service connections or regularly serves at least 25 individuals daily at least 60 days out of the year.

Page 418 of 632 ends

Section 2 2025 Urban Water Management Plan
Plan Preparation City of Pleasanton
Public Draft | May 2026
2-2 EKI Environment & Water, Inc.

Table 2-1 Public Water Systems (DWR Table 2-1)
Has there been a change in the number of affiliated PWSs since the 2020 UWMP? (OPTIONAL)
No
PWS Number PWS Name Number of Municipal
Connections 2025
Volume of
Water Supplied
2025 (AFY)
CA0110008 City of Pleasanton 22,370 12,663
Total 22,370 12,663

2.2 Basis for UWMP Reporting

2.2.1 Individual or Regional Plan
This 2025 UWMP has been prepared on an individual reporting basis covering only the City’s service area (Table 2-2). The City does not participate in a regional alliance, and it has not prepared a Regional UWMP.

Urban retail water suppliers may report on the requirements of SB X7-7 individually or as a member of a “Regional Alliance.” As described in Section 5, Pleasanton is not a member of a Regional Alliance.

Table 2-2 Plan Identification (DWR Table 2-2)
Type of Plan
Name of
Regional
Alliance or
Regional
UWMP
☒ Individual UWMP
☐ Water Supplier is also a member of a SB X7-7 Regional Alliance ☐ Regional UWMP N/A

2.2.2 Fiscal or Calendar Year and Units of Measure

Pleasanton is an urban retail water supplier, as defined by CWC §10608.12(t), and not a wholesale supplier. Throughout this Plan, water volumes are reported in units of acre-feet (AF) and using a calendar year basis (Table 2-3). Volumes reported in this UWMP for 2025 cover the full 12 months of the year.

 CWC §10608.20
(a)(1) Urban retail water suppliers … may determine the targets on a fiscal year or calendar year basis.

Page 419 of 632 ends

Section 2 2025 Urban Water Management Plan
Plan Preparation City of Pleasanton
Public Draft | May 2026
2-3 EKI Environment & Water, Inc.

Table 2-3 Supplier Identification (DWR Table 2-3)
Type of Supplier
☐ Supplier is a wholesale supplier.
☒ Supplier is a retail supplier.

Fiscal or Calendar Year
☒ UWMP tables are in calendar years.
☐ UWMP tables are in fiscal years.

Units of measure used in UWMP
Unit AF

2.3 Coordination and Outreach
The UWMP Act requires the City to coordinate the preparation of its UWMP and updates to its WSCP with other appropriate agencies and all departments within the City, including other water suppliers that share a common source, water management agencies, and relevant public agencies. The City coordinated the preparation of this Plan with Zone 7, DSRSD, Livermore, and Cal Wate r. These agencies, community organizations, and the public participated in the coordination and preparation of this 2025 UWMP, including the WSCP update, as summarized in the following subsections.

2.3.1 Wholesale and Retail Coordination

Pleasanton is one of four urban water retailers that purchase supply from Zone 7 on a wholesale basis (Table 2-4). The City coordinated with Zone 7 to provide notification of the 2025 UWMP preparation and a copy of the Draft Plan. In addition, the City participated in the development of Zone 7’s 2025 UWMP by providing the City’s water demand projections and reviewing Zone 7’s Draft UWMP. The City, in turn, received information from Zone 7 on its existing and planned water supplies and future supply reliability.

Table 2-4 Water Supplier Information Exchange (DWR Table 2-4) Wholesale Water Supplier Name
Alameda County Flood Control District Zone 7 (Zone 7)

 CWC §10631
(h) An urban water supplier that relies upon a wholesale agency for a source of water shall provide the wholesale agency with water use projections from that agency for that source of water in five- year increments to 20 years or as far as data is available. The wholesale agency shall provide information to the urban water supplier for inclusion in the urban water supplier’s plan that identifies and quantifies, to the extent practicable, the existing and planned sources of water as required by subdivision (b), available from the wholesale agency to the urban water supplier over the same five- year increments, and during various water -year types in accordance with subdivision.
(f) An urban water supplier may rely upon water supply information provided by the wholesale agency in fulfilling the plan informational requirements of subdivisions (b) and (f).

Page 420 of 632 ends

Section 2 2025 Urban Water Management Plan
Plan Preparation City of Pleasanton
Public Draft | May 2026
2-4 EKI Environment & Water, Inc.

2.3.2 Coordination with Other Agencies and the Community

In addition to coordinating the preparation of this 2025 UWMP and WSCP with Zone 7, Pleasanton also coordinated with DSRSD, Livermore, Cal Water, and DSRSD-East Bay Municipal Utility District (EBMUD) Recycled Water Authority (DERWA).

Pleasanton actively encourages community participation in water management activities and specific water-related projects. Pleasanton’s public participation program includes both active and passive approaches for obtaining input from the community, such as mailings, public meetings, and web -based communication. Pleasanton’s website describes on-going projects and posts announcements of planned rate increases to fund these water projects (www.cityofpleasantonca.gov).

As part of the 2025 UWMP and WSCP update, Pleasanton facilitated a public review period. Per Section 6066 of the California Government Code (CGC), the City provided public notification to commence a public comment period and to announce the date and location of the public hearing ( Appendix F). During the public comment period, the Draft 2025 UWMP, including the updated WSCP, was made available at the Pleasanton Public Library and was posted on the City’s website (www.PleasantonWaterConservation.com).

The City held a duly noticed public hearing on June 2, 2026. The public hearing provided an opportunity for ratepayers and the public to become familiar with the UWMP and ask questions about the City’s water supply and plans for continuing to provide a reliable, safe, high-quality- water supply.

2.3.3 Notice to Cities and Counties

In December 2025, a notice of preparation was sent to the cities and counties and other stakeholders to inform them of the UWMP and WSCP update process and schedule , and to solicit input for the 2025 UWMP and updated WSCP. In addition to the agencies listed in Section 2.3.2, these include:
• San Francisco Public Utilities Commission
• Pleasanton Unified School District
• Pleasanton Chamber of Commerce
• Pleasanton Downtown Association
• Hacienda Business Park Owners Association
 CWC §10620
(d)(3) Each urban water supplier shall coordinate the preparation of its plan with other appropriate agencies in the area, including other water suppliers that share a common source, water management agencies, and relevant public agencies, to the extent practicable.
 CWC §10642
Each urban water supplier shall encourage the active involvement of diverse social, cultural, and economic elements of the population within the service area prior to and during the preparation of both the plan and the water shortage contingency plan…
 CWC §10621
(b) Every urban water supplier required to prepare a plan pursuant to this part shall, at least 60 days before the public hearing on the plan required by Section 10642, notify any city or county within which the supplier provides water supplies that the urban water supplier will be reviewing the plan and considering amendments or changes to the plan.

Page 421 of 632 ends

Section 2 2025 Urban Water Management Plan
Plan Preparation City of Pleasanton
Public Draft | May 2026
2-5 EKI Environment & Water, Inc.

Copies of the notifications are included in Appendix F. The notifications to cities, counties, and other agencies are discussed in Section 10, along with the public hearing and adoption.

Pleasanton provided a 6 0-Day Notice to the entities and the communities it serves more than 60 days prior to the public hearing held on June 2, 2026, informing them that the Plan was going to be reviewed and updated . As a court esy, Pleasanton also provided a 60 -Day Notice to the County of Alameda, Livermore, the San Francisco Public Utilities Commission (SFPUC), and Cal Water due to geographical proximity and to ensure regional alignment in water management. The 60-Day Notice recipients are listed in Section 10 (Table 10-1), and copies of correspondence with the agencies are provided in Appendix F.

Page 422 of 632 ends

Section 3 2025 Urban Water Management Plan
Service Area Description City of Pleasanton
Public Draft | May 2026
3-1 EKI Environment & Water, Inc.
3 SERVICE AREA DESCRIPTION
This section describes th e Pleasanton’s wa ter system and service area, including climate, population, demographics, and land uses to help in understanding various elements of water supply and demand.

3.1 General Description

Pleasanton’s inception can be traced back to the 1850’s as a stagecoach stop along the main route to the gold fields. The City was incorporated in 1894, and in the twentieth century it grew into a thriving agricultural center with the production of grain, hay, and hops. Located in southeastern Alameda County at the junction of Interstate 580 and Interstate 680, Pleasanton is approximately 22 square miles. The city is bordered by Interstate 580 and the City of Dublin to the north , Livermore to the east, and unincorporated Alameda County to the south.

The city lies predominantly on flat land formed by alluvial deposits from prehistoric streams flowing through the Livermore, Amador, and San Ramon Valleys to the San Francisco Bay. Geologic activity in the area has resulted in varying deposits of sand and gravel in the northeastern portion of the city. While the area once supported the cultivation of crops and livestock, today, Pleasanton is predominately urbanized, except for several vineyards at the eastern edge of the city and livestock grazing on Pleasanton Ridge and in the Southeastern Hills.

The majority of Pleasanton occupies the Valley floor, which ranges in elevation from approximately 320 to 400 feet. Pleasanton is enclosed by hills on the west and southeast. The Pleasanton and Main Ridges to the west rise sharply above Foothill Road to peaks of 1,500 feet. These two ridges remain seismically active and feature complex terrain, densely wooded vegetation, and land slide prone soils. A series of gentle to steeply sloping hills extend south from Pleasanton into a valley containing the San Antonio Reservoir.

Pleasanton’s water service area includes the c ity itself, as well as customers in Remen Tract (unincorporated Alameda County), along Happy Valley Road and Kilkare Canyon Road (just north of the unincorporated Town of Sunol), and west of Foothill Road. Pleasanton’s service area lies within the Alameda Creek watershed, a drainage basin that covers about 675 square miles between Mount Hamilton and Mount Diablo (Figure 3-1).

 CWC §10631
(a) Describe the service area of the supplier…

Page 423 of 632 ends

Section 3 2025 Urban Water Management Plan
Service Area Description City of Pleasanton
Public Draft | May 2026
3-2 EKI Environment & Water, Inc.

Figure 3-1 Pleasanton Water Service Area Boundary 2

2 Pending areas of annexation, including Merritt, Lester and Arroyo Lago, are not included in the current service area boundary.

Page 424 of 632 ends

Section 3 2025 Urban Water Management Plan
Service Area Description City of Pleasanton
Public Draft | May 2026
3-3 EKI Environment & Water, Inc.

3.2 Climate

Pleasanton’s climate is characteristically Mediterranean, with hot, dry summers and cool, moist winters, which is typical of the inland San Francisco Bay Area. This section discusses historical climate in City’s water service area and potential effects of climate change.

Climate data was retrieved from the California Irrigation Management Information System’s (CIMIS) Pleasanton Station (Station #191) for May 2004 through November 2025 (DWR, 2025). These data show that most rainfall typically occurs between December and March ( see Figure 3-2 and Table 3-1). On average, Pleasanton receives 18 inches of rainfall annually and experiences 52 inches of annual reference evapotranspiration (ETo). Maximum daily air temperature averages 86 degrees Fahrenheit (°F) in summer months and 61°F in winter months.

Table 3-1 Climate Characteristics
Month
Average Temperature Standard
Average ETo
(inches)
Average Rainfall
(inches) Min (°F) Max (°F)
January 38 60 1.5 3.0
February 39 63 2.2 2.8
March 42 66 3.6 3.0
April 45 70 5.0 1.3
May 49 75 6.3 0.6
June 53 82 7.2 0.2
July 56 88 7.7 0.1
August 55 87 6.7 0.1
September 53 85 5.0 0.2
October 48 78 3.6 1.2
November 41 67 2.0 1.6
December 37 60 1.4 3.8
Annual 46 73 52 18
NOTES:
(a) ETo = reference evapotranspiration
(b) Climate data for May 2004-December 2025 from California Irrigation Management Information System (CIMIS) Station #191.

 CWC §10631
(a) Describe the service area of the supplier, … “climate…”  CWC §10635
(b)(4) Considerations of the historical drought hydrology, plausible changes on projected supplies and demands under climate change conditions, anticipated regulatory changes, and other locally applicable criteria.

Page 425 of 632 ends

Section 3 2025 Urban Water Management Plan
Service Area Description City of Pleasanton
Public Draft | May 2026
3-4 EKI Environment & Water, Inc.

Figure 3-2 Average Monthly Climatic Conditions
Climate change is expected to impact both water availability (supplies) and water demand patterns across California. For example:
• Higher temperatures can lead to increases in water use, particularly for irrigation. • Declining snowpack and earlier runoff patterns could result in changes in stream flows and reservoir operations.
• Frequent, severe, and prolonged droughts could lead not only to less available surface water, but could also exacerbate ongoing stressors in groundwater basins.

Some of these pressures are already apparent in California.

According to the Cal-Adapt tool, Pleasanton’s service area experienced a 30-year average temperature of

72.5°F between 1961 and 1990.
3 Future projections using Localized Constructed Analogs (LOCA) downscaled Coupled Model Intercomparison Project (CMIP5) model indicate an average increase in temperature of 3.5 °F for medium emissions ( Representative Concentration Pathway [RCP] 4.5) models and 4.4°F for high emissions (RCP 8.5) models by 2064 (Figure 3-3).

Climate projections for precipitation for the area show greater uncertainty compared to temperature projections, exhibiting a wider range of possible outcomes. Cal-Adapt projections using LOCA downscaled CMIP5 models suggest that the maximum 1-day precipitation may increase slightly by 0.08 and 0.09 inches under medium emissions (RCP 4.5) and high emissions (RCP 8.5) scenarios , respectively, relative to historical conditions (Figure 3-4).

3 The Cal-Adapt tool is available at: https://cal-adapt.org/tools/local-climate-change-snapshot

Page 426 of 632 ends

Section 3 2025 Urban Water Management Plan
Service Area Description City of Pleasanton
Public Draft | May 2026
3-5 EKI Environment & Water, Inc.

Figure 3-3 Temperature: Observed and Forecasted for Pleasanton’s Service Area

Figure 3-4 Precipitation: Observed and Forecasted for Pleasanton’s Service Area Pursuant to the CWC requirements and the 2025 UWMP Guidebook, this Plan incorporates climate change considerations into following relevant sections:
• Section 3 Service Area Description;

Page 427 of 632 ends

Section 3 2025 Urban Water Management Plan
Service Area Description City of Pleasanton
Public Draft | May 2026
3-6 EKI Environment & Water, Inc.
• Section 4 Water Use Characterization – specifically, Section 4.7 discusses potential climate change impacts on water demands;
• Section 6 Water Supply Characterization – specifically, Section 6.10.1 discusses potential climate change impacts on supplies; and
• Section 7 Water Supply Reliability Assessment.

3.3 Population and Demographics

As a midsize suburban city, the City is known as a desirable place to live and work, with a high -quality school system, parks and recreational facilities, a traditional downtown area, and a low crime rate. Land use planning within the City’s service area i s guided by the 2005 -2025 General Plan and 2023 -2031 Housing Element.

Single-family residential development remains the largest water customer sector in Pleasanton (46% of all potable demands in 2025).

3.3.1 Population
The estimated historical and current population served by the City is based on California Department of Finance (DOF) population estimates and Decennial Census data (Figure 3-5).

Pleasanton’s service area population in 2025 was 77,232, a noteworthy decrease compared to the population in 2020. This decrease can be attributed to demographic fluctuations from the COVID -19 pandemic. Before 2020, the City experienced steady population growth, averaging approximately 1.1% annually over the previous two decades.

The City anticipates population growth to resume between 2025 and 2030 at a reduced rate of roughly

0.6% per year. Beyond 2030, population growth is projected to rebound to pre-pandemic rates, averaging approximately 1.2% annually. By 2045, the total population within Pleasanton’s service area is expected to be 94,407.

Future population projections are consistent with other local planning documents, including DSRSD ’s Regional Wastewater Treatment Plant (WWTP) Master Plan. DSRSD’s WWTP Master Plan Update relies on Plan Bay Area 2040
4 projected population growth rates through 2040 (ABAG, 2017). Population projections are derived from the City’s 2024 WDSCMP, which reflects the growth projected in the City’s 2023-2031 Housing Element (Pleasanton, 2024).

Pleasanton’s current and projected service area population are shown in Table 3-2 and Figure 3-5 in five- year increments through 2045.

4 DSRSD’s WWTP Master Plan update is currently in process of development and uses Plan Bay Area 2040 Projections by Jurisdiction, as summarized in the City of Dublin’s 2023- 2031 Housing Element. Plan Bay Area 2050 projections are not used because they are based on subcounty areas (super -districts), which are a combination of cities, towns, and unincorporated areas.
 CWC §10631
(a) Describe the service area of the supplier, including current and projected population … other social, economic and demographic factors affecting the supplier’s water management planning. The projected population estimates shall be based upon data from the state, regional, or local service agency population projections within the service area of the urban water supplier and shall be in five- year increments to 20 years or as far as data is available.

Page 428 of 632 ends

Section 3 2025 Urban Water Management Plan
Service Area Description City of Pleasanton
Public Draft | May 2026
3-7 EKI Environment & Water, Inc.

Table 3-2 Population – Current and Projected (DWR Table 3-1) Population
Served
2025 2030 2035 2040 2045
77,232 79,395 84,202 89,024 94,407
NOTES:
(a) 2025 population per California Department of Finance (DOF) estimates for the City of Pleasanton (DOF, 2025b)
(b) Population projections were adapted from ABAG’s Plan Bay Area 2040 population projections, and the City’s 2024 WDSCMP (ABAG, 2017; and Pleasanton, 2024).

Figure 3-5 Historical and Projected Population Served

3.3.2 Other Social, Economic, and Demographic Factors
Table 3-3 summarizes demographics for Pleasanton ’s service area based on the U.S. Census American Community Survey 2024 5-Year Estimates (U.S. Census Bureau, 2024). The age distribution of Pleasanton’s residents is similar to statewide demographics with 23% of the population under 18 years and 17% over 65 years. E ducational attainment and median household income in Pleasanton are significantly higher than statewide demographics.
60,000
65,000
70,000
75,000
80,000
85,000
90,000
95,000
100,000
2000 2005 2010 2015 2020 2025 2030 2035 2040 2045
Population Served
Year
Historical Population
Projected Population

Page 429 of 632 ends

Section 3 2025 Urban Water Management Plan
Service Area Description City of Pleasanton
Public Draft | May 2026
3-8 EKI Environment & Water, Inc.

Table 3-3 Demographic Characteristics, 2020-2024
Demographics Pleasanton California
Age and Sex
Persons under 5 years 4.2% 5.3%
Persons under 18 years 23.1% 21.3%
Persons 65 years and older 16.7% 16.5%
Female persons 50.7% 50.1%
Race and Hispanic Origin
White alone 38.4% 69.8%
Black or African American alone 1.8% 6.4%
American Indian and Alaska Native alone 0.4% 1.8%
Asian alone 43.9% 17.0%
Native Hawaiian and Other Pacific Islander alone 0.5% 0.5% Two or More Races 11.4% 4.4%
Hispanic or Latino 12.5% 40.8%
White alone, not Hispanic or Latino 36.1% 33.6%
Families & Living Arrangements
Persons per household 2.73 2.84
Living in same house 1 year ago, percent of persons age 1 year+ 89.4% 89.2% Language other than English spoken at home, age 5 years+ 43.6% 44.4% Education
High school graduate or higher, persons age 25 years+ 96.5% 84.7% Bachelor’s degree or higher, persons age 25 years+ 69.9% 37.1% Income & Poverty
Median Household Income (2023 dollars) $190,124 $99,122 Per capita income in past 12 months (2023 dollars) $88,401 $49,513 Persons in poverty 5.3% 11.8%
Source: 2024 demographic data from the U.S. Census Bureau QuickFacts website (U.S. Census Bureau, 2024).

The age composition of Pleasanton’s housing stock is similar to that of the state: 30.5% of the homes in Pleasanton were built after 1990, compared to 32.5% for all California. Homes built after 1990 are more likely to have more efficient plumbing fixtures that are compliant with state and federal water and energy efficiency standards (U.S. Census Bureau, 2024).

Page 430 of 632 ends

Section 3 2025 Urban Water Management Plan
Service Area Description City of Pleasanton
Public Draft | May 2026
3-9 EKI Environment & Water, Inc.

3.4 Land Uses

This section describes Pleasanton ’s current and projected land uses in its service area. Land use information is based on the City’s current 2005-2025 General Plan that was adopted in 2009 (Pleasanton, 2009). State law mandates the development and adoption of general plans to guide land use and development within cities (C GC §65030.1). The Land Use Element of the City’s General Plan provides policies and maps that guide the use of public and open -space lands and specify the location, amount, and potential density and intensity for development of residential, commercial, and industrial lands.

Existing land use within the City generally consists of distinct residential neighborhoods typically separated from non-residential land uses to minimize the potential incompatibility of non-residential and residential uses. Almost every neighborhood has a school and a park within walking distance for its residents, and the City provides several larger public facilities including sports parks and community centers. Alameda County Fairgrounds are in Pleasanton.

The city was predominantly a residential community until 1980, when it saw increased development of industrial, commercial, and office uses. This non -residential development includes the Stoneridge Mall, seven major business parks, five major hotels, and a variety of service centers. Abundant open space surrounds the developed areas of the City , and the City’s General Plan highlights the importance of preserving that open space.

The current General Plan encourages mixed land uses and transit -oriented development (TOD), particularly near the Bay Area Rapid Transit stations, for future growth. Mixed use development combines office, commercial, hotel, institutional, and residential land uses on a single site or adjacent, interrelated sites. TOD provides walkable, mixed -use communities designed around transit stations. Mixed use developments (including TODs) would provide people with the opportunity to use alternative modes of transportation to automobiles since residential and non -residential land uses would be combined or integrated on a single or nearby site.

The City’s 2023 -2031 Housing Element identifies planned/proposed new residential development, including approved projects, expansions of existing housing sites, accessory dwelling units (ADU), and a rezoning program to introduce new housing sites on select commercial and open space parcels.

While the area east of current City limits, between the cities of Pleasanton and Livermore, has historically been used for sand and gravel mining, both the City and Alameda County have in recent years received development review applications. The City is working with developers to review the feasibility of annexing this area of east Pleasanton area where new development is proposed and connecting that area to the Pleasanton water system. Also in that area, Kiewit Housing Project is a major housing development currently in construction , and c onstruction of Costco was completed in 2024 , which added a major commercial development in Pleasanton.

Section 4.5 provides more detail on the projected water demands associated with these new developments.
 CWC §10631
(a) ...The description shall include the current and projected land uses within the existing or anticipated service area affecting the supplier’s water management planning. Urban water suppliers shall coordinate with local or regional land use authorities to determine the most appropriate land use information, including, where appropriate, land use information obtained from local or regional land use authorities…

Page 431 of 632 ends

Section 3 2025 Urban Water Management Plan
Service Area Description City of Pleasanton
Public Draft | May 2026
3-10 EKI Environment & Water, Inc.

3.5 Water Distribution System
Pleasanton operates separate potable and non -potable water distribution systems. Sections 3.5.1 and

3.5.2 describe the facilities and components of the two separate systems.

The non-potable syste m supplies recycled water treated at DSRSD ’s Regional Wastewater Treatment Facility (RWTF). Pleasanton’s supply portfolio also includes recycled water, which the City receives from Livermore and through the San Ramon Valley Recycled Water Program (SRVRWP) , which is operated by DERWA.

3.5.1 Potable Water Distribution System
Until 2023, Pleasanton purchased about 75% of its potable supply from Zone 7 in the form of treated water. The remainder was met through groundwater pumped from local wells owned and operated by the City. Water from the City’s wells was treated with chlorine, ammonia, and fluoride prior to entering the water distribution system. However, due to contamination risk from p er- and polyfluoroalkyl substances (PFAS), the City chose to stop operating its groundwater wells in 2023. Pleasanton plans to reintroduce groundwater as a source for its system; more detail on groundwater supply is provided in Section 6.2.

Since 2023, Zone 7 has supplied all of the City’s potable water. Supply from Zone 7 enters Pleasanton’s water system at seven different turnout locations, as follows:
• Turnout 1 is located on Santa Rita Road near Stoneridge Drive • Turnout 2 is located on Hopyard Road near Valley Trails Drive • Turnout 3 is located at the east end of West Las Positas Boulevard near Gulfstream Street • Turnout 4 is located on Hopyard Road at Stoneridge Drive • Turnout 5 is located on Bernal Avenue at Nevada Street • Turnout 6 is located on Machado Drive at Vineyard Avenue • Turnout 7 is located on Vineyard Avenue at Ruby Hills Boulevard All turnouts are equipped with facilities to fluoridate supply prior to introducing it into Pleasanton’s potable water system. Turnouts 1, 2, 3, 4, and 5 directly supply the system, with Turnouts 3-5 serving the majority, and turnouts 6 and 7 connect to the Vineyard and Ruby Hills water pump stations , which pressurize the system.

Pleasanton’s potable system currently consists of approximately 340 miles of pipelines and 22,370 water service connections. The system has 12 pump stations, 2 0 water storage reservoirs , and one hydropneumatic tank. The service area has 1 6 different pressure zones. Pressuring reducing valves and pump stations help to maintain appropriate pressures within each zone.

Pleasanton has emergency interties to connect the potable system with those of neighboring water suppliers, including two interties with DSRSD and one with Livermore. These interties are strictly for emergency conditions, such as a major pipeline break, supply contamination, or water service interruption that may be caused by earthquakes, floods, or other disasters.

In preparing the 2024 WDSCMP, t he City recently evaluated the potable distribution system’s current condition and its capacity to meet future water demands. While the evaluation concluded that capacity in much of the system is adequate to meet anticipated future demands, several improvements were recommended, including: increasing local storage, updating and upsizing aging water mains, and increasing looped connectivity within the system to enhance pressure distribution (Pleasanton, 2024).

Figure 3-6 identifies key aspects of the City’s potable distribution system and its 16 pressure zones , as identified in the 2024 WDSCMP.

Page 432 of 632 ends

Section 3 2025 Urban Water Management Plan
Service Area Description City of Pleasanton

Public Draft | May 2026
3-11 EKI Environment & Water, Inc.

Figure 3-6 Pleasanton’s Potable Water Distribution System

Page 433 of 632 ends

Section 3 2025 Urban Water Management Plan
Service Area Description City of Pleasanton
Public Draft | May 2026
3-12 EKI Environment & Water, Inc.

3.5.2 Non-Potable Water Distribution System
Over a decade ago, Pleasanton established its recycled water program with a goal of using recycled water in place of potable supply to meet irrigation demands along the alignment of its non-potable distribution system. The City purchases recycled water from DERWA and Livermore.

In June 2015, construction began on Pleasanton’s Recycled Water Project (RW Project) with funding supported through a Clean Water State Revolving Fund Program loan and Proposition 1 Program Grant Agreement with the SWRCB. The City substantially complete d construction of the RW Project by September 2016. The construction involved installing approximately 51,500 linear feet (LF) (or 9.8 miles) of new recycled water pipeline, ranging in diameter from 6 to 20 inches, and repurposing approximately 22,400 LF (4.2 miles) of existing potable pipeline for recycled water distribution.

The recycled water pipelines connect to DSRSD’s RWTF and the City’s existing 8 million gallon (MG) recycled water reservoir (Tassajara Reservoir), which was converted from a potable water storage facility in 2017. In 2019, the City also added a new recycled water pump station at the Ken Mercer Sports Park.

Livermore supplies recycled water to the northeast portion of Pleasanton . The City c onstructed that portion of the recycled water system concurrently with new development projects and initially began serving recycled water in 2013-2014 under Livermore’s recycled water permit coverage, until Pleasanton obtained authorization under its own permit coverage in July 2015.

Currently, the City has 9 8 permitted sites with 150 metered connections ( out of 161 targeted connections).

Page 434 of 632 ends

Section 4 2025 Urban Water Management Plan
Water Use Characterization City of Pleasanton
Public Draft | May 2026
4-1 EKI Environment & Water, Inc.
4 WATER USE CHARACTERIZATION

This section describes and quantifies Pleasanton’s historical, current, and projected water uses through 2045.

4.1 Non-Potable Versus Potable Water Use
Potable and non-potable water uses are accounted for separately in this section. Potable uses are served by Pleasanton’s potable water delivery system. Potable water deliveries comply with Title 22 Drinking Water Standards. Non-potable water uses may include recycled and untreated raw water deliveries that do not meet potable drinking water standards. Uses of potable versus non-potable water are clearly distinguished in the tables included in this section of the Plan.

 CWC §10635
(a) Every urban water Supplier shall include, as part of its urban water management plan, an assessment of the reliability of its water service to its customers during normal, dry, and multiple dry water years. This water supply and demand assessment shall compare the total water supply sources available to the water supplier with the long-term total projected water use over the next 20 years, in five-year increments, for a normal water year, a single dry water year, and a drought lasting five consecutive w ater years. The water service reliability assessment shall be based upon the information compiled pursuant to Section 10631, including available data from state, regional, or local agency population projections within the service area of the urban water supplier.  CWC §10631
(d)(1) For an urban retail water supplier, quantify, to the extent records are available, past and current water use, over the same five-year increments described in subdivision (a), and projected water use, based upon information developed pursuant to subdivision (a), identifying the uses among water use sectors, including, but not necessarily limited to, all of the following…
(d)(2) The water use projections shall be in the same five-year increments described in subdivision (a). (d)(4)(A) Water use projections, where available, shall display and account for the water savings estimated to result from adopted codes, standards, ordinances, or transportation and land use plans identified by the urban water supplier, as applicable to the service area.
(d)(4)(B) To the extent that an urban water supplier reports the information described in subparagraph (A), an urban water supplier shall do both of the following: (i) Provide citations of the various codes, standards, ordinances, or transportation and land use plans utilized in making the projections. (ii) Indicate the extent that the water use projections consider savings from codes, standards, ordinances, or transportation and land use plans. Water use projections that do not account for these water savings shall be noted of that fact.

Page 435 of 632 ends

Section 4 2025 Urban Water Management Plan
Water Use Characterization City of Pleasanton
Public Draft | May 2026
4-2 EKI Environment & Water, Inc.

4.2 Water Use Sectors

Demand within Pleasanton’s water service area is measured using water meters installed at each customer account. Records of current and historical water use at each account are maintained by Pleasanton. Demand within Pleasanton’s service area is tracked and reported for the following sectors:
• Single Family Residential: Attached or detached dwelling units that are individually metered. • Multi-Family Residential: Two or more dwelling units served by a common water meter. Water use is predominately for indoor water use; irrigation water use for multiple family sites is usually separately metered and listed in the irrigation sector. • Commercial: Includes commercial customers. Irrigation water use at these sites is usually separately metered and listed in the irrigation sector. • Industrial: Includes industrial customers. Irrigation water use at these sites is usually separately metered and listed in the irrigation sector.
• Landscape: Water meters used exclusively for outdoor uses associated with multiple family residential customers (i.e., homeowner associations [HOAs]) and other irrigation sites.

Sales to other agencies, agriculture, saline water intrusion barriers, groundwater recharge, or conjunctive use, or any combination thereof, as noted in CWC §10631(d)(1), do not apply to Pleasanton.

Pleasanton’s total water demand is the sum of demand for potable and recycled water within its service area. The City’s total potable demand includes water consumed by metered accounts in the service area (i.e., metered water use), authorized but unbilled uses (e.g., fire flow and distribution system flushing) , and water loss within the system.

Pleasanton’s recycled w ater demands are reported as the volume delivered to its recycled water distribution system and, therefore, is inclusive of any real or apparent water loss throughout the system.  CWC §10631
(d)(1) For an urban retail water supplier, quantify, to the extent records are available, past and current water use, over the same five-year increments described in subdivision (a), and projected water use, based upon information developed pursuant to subdivision (a), identifying the uses among water use sectors, including, but not necessarily limited to, all of the following:
(A) Single-family residential.
(B) Multifamily.
(C) Commercial.
(D) Industrial.
(E) Institutional and governmental.
(F) Landscape.
(G) Sales to other agencies.
(H) Saline water intrusion barriers, groundwater recharge, or conjunctive use, or any combination thereof. (I) Agricultural.
(J) Distribution system water loss.

Page 436 of 632 ends

Section 4 2025 Urban Water Management Plan
Water Use Characterization City of Pleasanton
Public Draft | May 2026
4-3 EKI Environment & Water, Inc.

4.3 Past and Current Water Demand

Past water uses inform an understanding of water use trends which are crucial for developing water use projections. Figure 4-1 shows recent historical and current water use from 2022 through 2025, and Table 4-1. shows the 2025 actual water use by sector. Total water use declined between 202 2 and 2025, reaching a minimum in 2023. The most significant reductions occurred in the single family residential and irrigation sectors. These trends are likely attributable to a decrease in Pleasanton ’s population between 2020 and 2025 (see Section 3.3) and to climatic conditions, as 2023 was a relative. The decrease in population resulted in reduced single family residential demand, while increased precipitation resulted in reduced irrigation demand (i.e., outdoor water use for residential and dedicated irrigation meter [DIM] accounts).

In 2025, the total water use was 13,736 AFY with single family residential demand accounting for the largest portion (i.e., 46% of total demand), as shown in Figure 4-2.

Recycled water accounted for 8% of water use in 2025. Currently, recycled water is predominately used for landscape irrigation on public and private lands , including city parks, commercial landscaping and streetscape. A minor amount is used for dual -plumbing and construction . Detailed discu ssion of Pleasanton’s recycled water program is provided in Section 6.5.

Figure 4-1 Total Uses for Potable and Non-Potable Water, 2022-2025 Actual

0 2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
2022 2023 2024 2025
Annual Water Demand (AF)
Single Family Multi-Family
Commercial Industrial
Landscape - Potable Water Landscape - Recycled Water
Potable Distribution System Water Loss
 CWC §10631
(d)(1) For an urban retail water supplier, quantify, to the extent records are available, past and current water use… based upon information developed pursuant to subdivision (a), identifying the uses among water use sectors…

Page 437 of 632 ends

Section 4 2025 Urban Water Management Plan
Water Use Characterization City of Pleasanton
Public Draft | May 2026
4-4 EKI Environment & Water, Inc.

Table 4-1 2025 Actual Total Uses for Potable and Non-Potable Water (DWR Table 4-1) Use Type Additional
Description
2025 Actual Water Use
Level of Treatment
When Delivered
Volume
(AFY)
Single Family Potable 6,251
Multi-Family Potable 1,320
Commercial Potable 1,379
Industrial Potable 44
Landscape (a) Irrigation with
Potable Water Potable 2,392
Landscape (a) Irrigation with
Recycled Water Non-Potable 1,073
Distribution System Water Loss (b) Potable 1,277
Subtotal Potable 12,663
Subtotal Non-Potable (c) 1,073
Total 13,736
NOTES:
(a) Landscape water use is separated based on whether demands were met by Pleasanton’s potable water supply or recycled water supply.
(b) Distribution System Water Loss refers to real and apparent water losses from Pleasanton’s potable water distribution system. Water losses from the recycled water distribution system are included in the reported recycled water Landscape use. (c) Though a minor amount of recycled water is used for dual -plumbed buildings and construction, the volume is too low to show meaningful measure.

Figure 4-2 Total 2025 Water Demand by Customer Category 46%
,
Single Family
10%
,
Multi
-
Family
10%
,
Commercial
<1%
,
Industrial
17%
,
Landscape
-
Potable Water
8%
,
Landscape
-
Recycled Water
9%
,
Distribution
System Water Loss

Page 438 of 632 ends

Pleasanton City CouncilJune 2, 2026

Pleasanton City Council
June 2, 2026