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3 <br />March 15, 2010 <br />Ms. Emily Wagner <br />City of Pleasanton <br />123 Main Street <br />Pleasanton, Califomia 94566 <br />Subject: Local Sewer Rate Study Report <br />Dear Ms. Wagner: <br />HDR Engineering, Inc. (HDR) is pleased to present this final report on the local sewer rate study <br />recently conducted for the City of Pleasanton (City). This report outlines the approach, <br />methodology, findings, and conclusions of this study. <br />This report has been prepared using "generally accepted" sewer rate setting techniques. The <br />City's financial documents along with the revenue requirement developed by the City were the <br />primary sources for the data contained within the report. The conclusions and recommendations <br />contained within this report should provide the City with a set of recommendations to operate the <br />utility in a financially prudent and stable manner. Furthermore, this report provides the basis for <br />developing and implementing local sewer rates that are cost -based and defensible to your <br />customers. <br />I appreciate your contributions and assistance, along with that of City's management team, in the <br />development of this report. Thank you for the opportunity to provide this technical assistance. <br />Sincerely, <br />HDR ENGINEERING, INC. <br />07 /1-- <br />Shawn Koorn <br />Senior Financial Analyst <br />ONE CO.MMI'ANY Many Solutions- <br />HDR Engineering, Inc. <br />ri'D 11,81 Avert <br />S ,iI' 12191 <br />.fui5l x .'1.7111 <br />