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Executive Summary Introduction HDR Engineering, Inc. (HDR) was retained by the City of Pleasanton (City) to perform a comprehensive local sewer rate study. The City's sewer services are segregated into two components; a regional treatment component and the local collection component. This study was conducted to analyze only the City's local sewer collection costs and rates. Purpose of the Study The main objectives of the local sewer rate study were to establish local sewer rates that fully recover the cost of providing sewer collection service to customers, adequately provide for maintaining and expanding the sewer collection system h. infrastructure, and provide adequate reserves for future needs. "A major component of this The development of this study determines the adequacy of the study is focused on the issue of existing local sewer rates. long -term funding to maintain the City's local sewer collection system. This study will develop One of the challenges of the utility industry is the need to a financial plan to begin to maintain existing infrastructure. A major component of this adequately support the study is focused on the issue of long -term funding to maintain required long -term funding the City's local sewer collection system. This study will needed by the City." develop a financial plan to begin to adequately support the required long -term funding needed by the City. From this study, a set of recommendations concerning the City's local sewer rates will be provided. Overview of the Rate Study Process A comprehensive sewer rate study typically utilizes three interrelated analyses to address the adequacy and equity of a utility's rates. These three analyses are a revenue requirement analysis, a cost of service analysis, and a rate design analysis. Figure ES -1 provides an overview of these analyses. E xecutive Summary ESA City of Pleasanton Local Sewer Rate Study