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Distribution Costs by Customer Type
<br />Most water delivery fees (Distribution Costs) vary, depending upon the
<br />peaks in customer demand for water service. There are proposed rate
<br />adjustments of 30% effective November 1, 2023, then 20% effective
<br />January 1, 2025, and then 12% for the third year beginning
<br />January 1, 2026.
<br />Recycled Water Surcharge
<br />The City developed a recycled water program for commercial irrigation
<br />water for the area between the Dublin San Ramon Services District
<br />(DSRSD) plant located on Johnson Drive and the east and northeast
<br />sections of Pleasanton. Recycled water benefits all water users by
<br />freeing up potable water being used for irrigation for domestic water
<br />usage. The current recycled water rate for all customers except Tier 1
<br />of the single-family residential rates is $0.10 per CcF. The proposed
<br />recycled water surcharge is $0.01 per CcF for all potable multi-family,
<br />commercial, and irrigation customers and $0.06 per CcF for the single-
<br />family residential Tier 4 rates.
<br />Capacity Expansion Surcharge
<br />The City constructed several water related projects in the Vineyard
<br />Avenue Corridor Specific Plan area to accommodate an increased
<br />demand in water volume by large residential customers. Most of these
<br />costs will be repaid through fees paid by new housing development
<br />in the area. Since the expansion was also related to the high-water
<br />consumption of existing residential water customers city-wide, the
<br />current rate is an additional $0.13 per CcF on the single-family
<br />residential Tier 4 rates. It was determined that no rate change is
<br />needed, and this surcharge will be removed once the Vineyard Corridor
<br />Improvement loan is paid off.
<br />Proposed Consumption Rates
<br />The proposed consumption rates reflect the Zone 7 passthrough rates
<br />and the City’s consumption charges (distribution costs, recycled water
<br />surcharges and capacity expansion charges). The Zone 7 consumption
<br />rate includes the remaining portion that isn’t covered by the Zone 7
<br />fixed charge. The tables below provide the proposed consumption
<br />charges, if adopted, per CcF, or per 748 gallons, of water consumed by
<br />type of water customer effective November 1, 2023.
<br />Rates for Recycled Irrigation Water Service
<br />The City purchases and delivers recycled irrigation water to commercial
<br />customers in various areas within its service area. The current recycled
<br />water rate is based on 90% of the potable irrigation rate. Since the
<br />recycled water program is now established, it was determined that the
<br />cost of the program be calculated independently. The Recycled Water
<br />Program is paying for its debt service and operating costs. The proposed
<br />recycled water fixed charge is the same as the potable water fixed charge
<br />and is based on meter size. There are proposed rate adjustments of 30%
<br />effective November 1, 2023, then 20% effective January 1, 2025, and
<br />then 12% for the third year beginning January 1, 2026. The proposed
<br />recycled water irrigation variable charges are shown in the table below:
<br />RATES AND CHARGES THAT APPLY
<br />TO YOUR SEWER BILL
<br />Included on your water bill are bi-monthly sewer charges which
<br />include a fee payable to the City of Pleasanton for the maintenance and
<br />operation of the local sewer collection system and a regional sewer
<br />service charge payable to either DSRSD or the City of Livermore
<br />depending on where the account resides within Pleasanton for sewer
<br />treatment.
<br />Local sewer service charges are developed to equitably allocate
<br />costs to users for asset operation, pay for debt service incurred for
<br />the construction of sewer facilities, and to perform the necessary
<br />maintenance and repairs (or replacement) of the City’s wastewater
<br />collection system. The costs also include the labor and pumping charges
<br />associated with the collection and pumping of raw sewer to the DSRSD
<br />and/or City of Livermore treatment plants.
<br />The local portion of the current City rates represents approximately
<br />33% for DSRSD sewer treatment customers and approximately 18%
<br />for Livermore sewer treatment customers of the overall bi-monthly
<br />sewer bill. The proposed sewer rates will be for only three years and
<br />will be based on the Annual Consumer Price Index (CPI) - All Urban
<br />Consumers for the San Francisco-Oakland-Hayward, CA index. The first
<br />year of the proposed rates will increase by 5.30% based on CPI and will
<br />be effective November 1, 2023 to June 30, 2024.
<br />Pass Through of Future Regional Rate Increases
<br />The City does not own or operate a wastewater treatment plant. Instead
<br />a majority of the City’s wastewater is treated by DSRSD and an
<br />easterly area is treated by City of Livermore. Government Code §53756
<br />(AB 3030 [2008]) permits the City to automatically pass-through the
<br />increases or decreases in DSRSD and City of Livermore wholesale
<br />regional sewer treatment charges for the next five years commencing
<br />with November 1, 2023.
<br />Structural Changes – Ruby Hill Local Sewer Rates
<br />The City of Pleasanton is required to maintain the collection system
<br />within the Ruby Hill project area, which receives treatment from the
<br />City of Livermore. No changes are being proposed to the Ruby Hill
<br />Local Sewer Rates as part of this rate study. Any structural changes
<br />to these rates will be addressed in the formal agreement between the
<br />City and Livermore. The current rates are 90% of the City’s rates. No
<br />changes are being proposed to the Ruby Hill Local Sewer Rates as part
<br />of this rate study.
<br />Variable
<br />Charges
<br />FY 2024
<br />Tier 1(20 ccf)
<br />Tier 2(40 ccf)
<br />Tier 3(60 ccf)
<br />Tier 4(60+ ccf)
<br />Multi-Family
<br />Commercial
<br />Irrigation
<br />Pleasanton
<br />$2.06
<br />$2.98
<br />$3.51
<br />$3.75
<br />$2.04
<br />$2.16
<br />$2.99
<br />RW
<br />Surcharge
<br />$0.00
<br />$0.00
<br />$0.00
<br />$0.06
<br />$0.01
<br />$0.01
<br />$0.01
<br />Zone 7
<br />$3.43
<br />$3.43
<br />$3.43
<br />$3.43
<br />$3.43
<br />$3.43
<br />$3.43
<br />Total
<br />FY
<br />2024
<br />$5.49
<br />$6.41
<br />$6.94
<br />$7.24
<br />$5.47
<br />$5.60
<br />$6.43
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<br />Variable
<br />Charges
<br />FY 2025
<br />Tier 1(20 ccf)
<br />Tier 2(40 ccf)
<br />Tier 3(60 ccf)
<br />Tier 4(60+ ccf)
<br />Multi-Family
<br />Commercial
<br />Irrigation
<br />Pleasanton
<br />$2.92
<br />$4.21
<br />$4.96
<br />$5.30
<br />$2.88
<br />$3.06
<br />$4.23
<br />RW
<br />Surcharge
<br />$0.00
<br />$0.00
<br />$0.00
<br />$0.08
<br />$0.01
<br />$0.01
<br />$0.01
<br />Zone 7
<br />$3.66
<br />$3.66
<br />$3.66
<br />$3.66
<br />$3.66
<br />$3.66
<br />$3.66
<br />Total
<br />FY
<br />2025
<br />$6.58
<br />$7.87
<br />$8.62
<br />$9.04
<br />$6.55
<br />$6.73
<br />$7.90
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<br />Variable
<br />Charges
<br />FY 2026
<br />Tier 1(20 ccf)
<br />Tier 2(40 ccf)
<br />Tier 3(60 ccf)
<br />Tier 4(60+ ccf)
<br />Multi-Family
<br />Commercial
<br />Irrigation
<br />Pleasanton
<br />$3.75
<br />$5.40
<br />$6.37
<br />$6.80
<br />$3.70
<br />$3.93
<br />$5.43
<br />RW
<br />Surcharge
<br />$0.00
<br />$0.00
<br />$0.00
<br />$0.10
<br />$0.01
<br />$0.01
<br />$0.01
<br />Zone 7
<br />$3.60
<br />$3.60
<br />$3.60
<br />$3.60
<br />$3.60
<br />$3.60
<br />$3.60
<br />Total
<br />FY
<br />2026
<br />$7.35
<br />$9.00
<br />$9.97
<br />$10.50
<br />$7.31
<br />$7.54
<br />$9.04
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<br />Recycled Water Rate
<br />Total FY
<br />2025
<br />$7.90
<br />Total FY
<br />2024
<br />$6.43
<br />Total FY
<br />2026
<br />$9.04
<br />FY 2024
<br />$29.27
<br />$44.58
<br />$20.09
<br />$15.31
<br />$15.31
<br />Sewer - Pleasanton
<br />Fixed Charges
<br />Single Family Residential
<br />Single Family with 2nd Res
<br />Condo
<br />Multi Family
<br />Commercial
<br />FY 2024
<br />$1.65
<br />$1.63
<br />$1.65
<br />$1.58
<br />$1.92
<br />$1.54
<br />$1.54
<br />$1.39
<br />$1.34
<br />$0.88
<br />$1.39
<br />Sewer - Pleasanton
<br />Variable Charges (CcF)
<br />Commercial
<br />Auto Steam Cleaning
<br />Bakeries
<br />Laundry
<br />Grocery w/Disposal
<br />Mortuary
<br />Restaurant Fast
<br />Restaurant Full
<br />All Other
<br />Institutional
<br />Schools Sub-metered
<br />Schools not Sub-metered
<br />All Other
<br />RATES AND CHARGES THAT APPLY
<br />TO YOUR WATER BILL
<br />Your water bill consists of a fixed water service charge and variable
<br />consumption charges based on the amount of water consumed in a
<br />bi-monthly billing period. The following is a brief description of the
<br />rate components of a City water bill proposed to increase November
<br />1, 2023. Customers will be notified of all rate changes 30 days in
<br />advance of the effective dates.
<br />Fixed Meter Charge
<br />All customers are billed a fixed meter charge based on the size of the
<br />water meter. This charge also covers a portion of the operations and
<br />systems maintenance costs, such as facility repair and maintenance;
<br />daily inspections of water facilities to ensure the health and safety
<br />of the water supply; replacement of aging infrastructure and water
<br />meters; utility billing; and water conservation and education efforts.
<br />This charge is constant regardless of how much water is used. The
<br />table to the right shows the proposed water fixed meter charges. There
<br />are proposed rate adjustments of 30% effective November 1, 2023,
<br />then 20% effective January 1, 2025, and then 12% for the third year
<br />beginning January 1, 2026.
<br />The following section presents the components of the consumption rates
<br />and charges:
<br />Zone 7 Water Agency Rates
<br />Zone 7 Water Agency is the City’s wholesaler water provider. Government
<br />Code §53756 (AB 3030 [2008]) permits the City to automatically pass-
<br />through Zone 7’s water rates for the next five years commencing with
<br />January 1, 2023. To learn more about Zone 7’s rate setting process, visit
<br />www.zone7water.com/post/water-rates.
<br />The setting of this rate is not within the control of the City of Pleasanton
<br />and is subject to change by Agency (Zone 7). The current Zone 7 rate
<br />for Pleasanton customers is $3.93 per 100 cubic feet (CcF) and this is a
<br />blended variable rate of Zone 7’s fixed and variable rates for the City. The
<br />proposed Zone 7 rates will be split between fixed and variable charges.
<br />The proposed Zone 7 fixed charges for Pleasanton customers by meter size
<br />is shown on the table below:
<br />Pleasanton Fixed
<br />5/8 inch
<br />3/4 inch
<br />1 inch
<br />1-1/2 inch
<br />2 inch
<br />3 inch
<br />4 inch
<br />6 inch
<br />8 inch
<br />10 inch
<br />Jan.
<br />2024
<br />$4.60
<br />$5.48
<br />$7.69
<br />$13.42
<br />$16.96
<br />$42.55
<br />$72.56
<br />$126.41
<br />$311.76
<br />$488.29
<br />Jan.
<br />2025
<br />$6.48
<br />$7.72
<br />$10.83
<br />$18.90
<br />$23.88
<br />$59.91
<br />$102.16
<br />$177.98
<br />$438.93
<br />$687.47
<br />Jan.
<br />2026
<br />$8.32
<br />$9.91
<br />$13.90
<br />$24.25
<br />$30.64
<br />$76.87
<br />$131.08
<br />$228.36
<br />$563.17
<br />$882.05
<br />WATER SUPPLY AND QUALITY
<br />IN PLEASANTON
<br />The City of Pleasanton is committed to providing safe, reliable
<br />drinking water and this increase will ensure that funds are in
<br />place to consistent water delivery and manage PFAS and other
<br />water quality issues. The primary purpose of the immediate rate
<br />adjustment is to fund near-term projects that will allow for the
<br />delivery of additional water from the Zone 7 Water Agency while a
<br />longer-term solution is developed. Revenue from rate adjustments
<br />will then be used to ensure the city is prepared in case of an
<br />emergency or another drought, conduct vital maintenance, and
<br />begin work on longer-term supply alternatives.
<br />While the proposed increase is significant, Pleasanton’s rates will
<br />remain near the bottom of agencies in the region following this rate
<br />adjustment. The City plans to use an array of funding sources for its
<br />water supply and quality projects in addition to rate revenue. State
<br />and federal funds have been committed to projects that will deliver
<br />a solution to PFAS and the City is part of a global settlement with
<br />3M, a company that has been linked to the creation of products
<br />with PFAS.
<br />Pleasanton’s drinking water has always met or exceeded state and
<br />federal drinking water regulations and will continue to do so in the
<br />future and the City aims to make investments now that will meet
<br />the water needs of the community now and into the future.
<br />For more information on this project, please visit:
<br />www.PleasantonPFAS.com
<br />Zone 7 Charges
<br />5/8”
<br />3/4”
<br />1”
<br />1-1/2”
<br />2”
<br />3”
<br />4”
<br />6”
<br />8”
<br />10”
<br />Jan. 2024
<br />$17.30
<br />$25.95
<br />$47.58
<br />$103.81
<br />$138.41
<br />$389.29
<br />$683.41
<br />$1,211.11
<br />$3,027.78
<br />$4,757.94
<br />Jan. 2025
<br />$18.48
<br />$27.71
<br />$50.81
<br />$110.85
<br />$147.80
<br />$415.68
<br />$729.73
<br />$1,293.19
<br />$3,232.98
<br />$5,080.39
<br />Jan. 2026
<br />$18.18
<br />$27.25
<br />$49.97
<br />$109.00
<br />$145.33
<br />$408.73
<br />$717.53
<br />$1,271.57
<br />$3,178.91
<br />$4,995.43
<br />Bi-Monthly Meter
<br />Service Charge
<br />DRAFT
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