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4.0 Determination of the City's Recycled) Rater Connection Fee 4.1 Introduction This section of the report presents the details and key assumptions in the calculation of the City's recycled water connection fees. The calculation of the City's recycled water connection fees is based upon City specific accounting and planning information. Specifically, the fees are based upon the City's fixed asset records; the City's current capital improvement plans, existing equivalent residential units (ERUs) and projection of future ERUs. As was noted in Section 2 of this report, these planning documents and projections of future ERUs provide the required support for a "rationally based public policy" to support the imposition of cost -based connection fees. The methodology applied to determine the charges was the "combined" methodology. Under the combined methodology, the charge is based on the value of the system in place which still has capacity available for growth or that portion of the system which was funded by existing customers and any future capital projects which are regulatory or connection fee eligible. To the extent that the cost and timing of future capital improvements change, then the connection fees presented in this section of the report should be updated. 4.2 Overview of the City's Recycled Water System The development of a recycled water service within the City would lessen the demand for Zone 7 Water Agency potable water supply and help the City meet the State of California's Water Conservation Act of 2009, which requires a 20 percent reduction in urban per capita water use by the year 2020. Recycled water also increases the City's water system reliability since recycled water is a local supply within the City's control and is drought proof. The Tassajara Reservoir has an 8 million gallons (MG) capacity, was built in 1993, and is currently part of the potable water distribution system. The City has determined that the Tassajara Reservoir and a portion of its supply line can be easily converted from the potable water system to serve the recycled water system. The conversion of this existing reservoir and supply pipeline to recycled water will project a larger savings in the establishment of a recycled water system. A report on this project entitled, The City of Pleasanton Recycled Water Feasibility Study ( "Feasibility Study "), dated July 2013 identifies the recycled water project facility into two phases named Phase 1 (separated into 1A and 1B) and Phase 2. The report also includes a west and east option. The two phases of the overall project include feasible sites along the northern side of the City, extend the recycled water from west to east City limits, and south along Santa Rita Road to just south of Valley Avenue. The main goal of this distribution route is to connect, Determination of the City's Recycled Water Connection Fee City of Pleasanton - Recycled Water Connection Fee 11