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This report will outline the overall approach used to calculate the recycled water connection <br />fee, along with our conclusions and recommendations. Prior to adoption of the proposed <br />recycled water connection fee, HDR recommends that the City have its legal counsel review the <br />fees to ensure compliance with California law. <br />1.2 Organization of Report <br />This report documents the methodology, approach and technical analysis undertaken by HDR <br />and the City to develop the City's recycled water connection fee. The report is divided into four <br />sections. Section 1 provides a brief introduction and overview of the study. Given this brief <br />introduction, Section 2 provides an overview of connection fees and the criteria and general <br />methodology that should be used to calculate and establish cost -based connection fees. Next, <br />Section 3 provides an overview of the requirements under California law for determining <br />connection fees. Finally, Section 4 reviews the City's specific calculations of the cost -based <br />recycled water connection fee and provides a summary of the analyses and "allowable" <br />connection fee. <br />1.3 Disclaimer <br />HDR, in its calculation of the recycled water connection fee presented in this report, has used <br />"generally accepted" engineering and ratemaking principles. This should not be construed as a <br />legal opinion with respect to California law. HDR recommends that the City have its legal <br />counsel review the recycled water connection fee as set forth in this report to ensure <br />compliance with California law. <br />F Introduction 2 <br />r� City of Pleasanton - Recycled Water Connection Fee <br />