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asset and an estimated replacement value. Then the replacement value was depreciated using <br />a simple straight -line method based on the useful life of each historical asset, respectively. <br />After the existing repurposed potable infrastructure is analyzed then the CF- eligible future <br />expansion projects are added to the total cost component. This total existing and future cost is <br />divided by the total existing and future equivalent residential units to determine the "gross <br />connection fee ". The last step in the calculation of the connection fee is the determination of <br />any credits. This is generally a calculation to assure that customers are not paying twice - once <br />through recycled connection fees and again within the City's recycled water rates. <br />2.6 Summary <br />This section of the report has provided an overview of connection fees; the basis for <br />establishing the fees, considerations in establishing connection fees and the burden <br />development places on the system and the steps typically taken in the development of the <br />technical analyses. <br />In the development of the City's recycled water connection fee study, the issues identified in <br />this section of the report have been addressed and will be discussed in more detail in later <br />sections of the report. The next section of the report provides a brief overview of the legal <br />considerations in establishing connection fees, particularly as they relate to California law. <br />F Overview of Connection Fees <br />City of Pleasanton - Recycled Water Connection Fee <br />7 <br />