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ra O CIIIIIMMIIIIIIMMIIIIIIII <br /> Advisory Services to Municipal Management <br /> 201 North Civic Drive, Suite 230 Robert D. Hilton, CMC <br /> Walnut Creek, California 94596 John W. Farnkopf, PE <br /> Telephone: 925/977 -6950 Laith B. Ezzet, CMC <br /> Fax: 925/977 -6955 Richard J. Simonson, CMC <br /> www.hfh- consultants.com Marva M. Sheehan, CPA <br /> March 18, 2010 <br /> Emily E. Wagner <br /> Fiscal Officer <br /> City Manager's Office <br /> 123 Main Street <br /> Pleasanton, CA 94566 -0802 <br /> Subject: Water Rate Study <br /> Dear Ms. Wagner: <br /> This report documents the results of two years of studying the City's water rates. Our <br /> key recommendations are: <br /> 1. Adjust consumption charges effective August 1, 2010 to generate 21% more <br /> revenue in FY 2010 -11. <br /> 2. Move multi family residential customers from the residential class to the <br /> commercial class. <br /> 3. Restructure single family residential consumption charges to add a fourth tier. <br /> The average cost for water for this class will increase 24% effective August 1, <br /> 2010. <br /> 4. Continue charging commercial customers uniform consumption charges. The <br /> average cost for water for this class will increase 32% effective August 1, 2010. <br /> 5. Convert the irrigation consumption charge structure from seasonal to uniform <br /> charges. The average cost for water for this class will increase 31% effective <br /> August 1, 2010. <br /> Very truly yours, <br /> HF &H CONSULTANTS, LLC <br /> 1' <br /> a aF <br /> n W. Farnko.f, P.E. <br /> W <br /> Senior Vice President <br />