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BACKGROUND <br /> The City of Pleasanton collects fees on the utility bill for multiple outside agencies, <br /> including the Zone 7 Water Agency, the City's water wholesaler; Dublin San Ramon <br /> Services District (DSRD), who provides wastewater treatment for the majority of <br /> Pleasanton customers; and the City of Livermore, who provides wastewater treatment <br /> for Ruby Hill customers only. The City of Pleasanton also collects fees for bi-monthly <br /> fixed water meter charges, water distribution charges, bi-monthly residential fixed <br /> charges for sewer, and a per Ccf (hundred cubic feet) unit charge for commercial sewer <br /> customers. <br /> When the Ruby Hill Project Area (852 residential customers and four (4) commercial <br /> customers) was being developed, it was determined at the time that it would be more <br /> feasible to contract with Livermore to treat and dispose of wastewater originating from <br /> the Ruby Hill Project Area (Ruby Hill). Therefore, in 1993 the cities of Livermore and <br /> Pleasanton entered into an Agreement for Wastewater and Disposal Services, which <br /> describes the terms of Livermore treating and disposing of the wastewater generated in <br /> Ruby Hill. <br /> DISCUSSION <br /> Per the 1993 Agreement for Wastewater and Disposal Services between the City of <br /> Pleasanton and City of Livermore, Ruby Hill receives only a portion of the sewer <br /> services the Project Area residents are charged for by the City of Livermore. Per the <br /> Agreement, Ruby Hill is charged the same basic service charge as established for <br /> the Livermore Sewer Service Area to provide for maintenance, operation (including <br /> overhead), repair, and replacement of any portion, element or component of <br /> Livermore's sewerage facilities; and the fees are collected by Pleasanton and <br /> transmitted directly to Livermore. <br /> The Livermore sewer rate is a blended rate covering treatment and collection of <br /> sewer services throughout the Livermore Sewer Service Area. However, <br /> Pleasanton provides repair and replacement of all sewer collection facilities within <br /> the Ruby Hill gate, not Livermore. Pleasanton's rate is not a blended rate. A <br /> collection rate is charged to all Pleasanton residents (including Ruby Hill residents) <br /> for the repair and replacement of these facilities.Below is a comparison of <br /> Pleasanton, Ruby Hill and Livermore bi-monthly sewer charges. <br /> Current Sewer Rates: <br /> Pleasanton Ruby Hill Livermore <br /> Dublin/San Ramon Treatment $52.09 N/A N/A <br /> Livermore Treatment/Collection N/A $96.34 $96.34 <br /> Pleasanton Collection $25.19 $25.19 N/A <br /> Total $77.28 $121.53 $96.34 <br /> This comparison demonstrates that Ruby Hill customers are charged a disproportionate <br /> share of wastewater treatment and collection fees as compared to other Pleasanton and <br /> Livermore sewer customers. Therefore, it is proposed that the Council consider <br /> implementing a (10%) reduction to the Pleasanton local sewer service charge until the <br /> Page 2 of 3 <br />