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201 North Civic Drive, Suite 230 <br />Walnut Creek, California 94596 <br />Telephone: 925/977 -6950 <br />Fax: 925/977 -6955 <br />www.hfh-consultants.com <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 />W. Farnko f, P.E. <br />Senior Vice President <br />Advisory Services to Municipal Management <br />Robert D. Hilton, CMC <br />John W. Farnkopf, PE <br />Laith B. Ezzet, CMC <br />Richard J. Simonson, CMC <br />Marva M. Sheehan, CPA <br />