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3 <br />  <br />From: Peter Van Brunt    <br />Sent: Thursday, August 17, 2023 3:28 PM  <br />To: Tara Layton <tlayton@cityofpleasantonca.gov>  <br />Subject: Re: City of Pleasanton Proposed Water Rates Increase  <br />  <br />  *** [EXTERNAL] This message comes from an external organization. Exercise caution when opening attachments or clicking links, especially from unknown  <br />senders. ***  <br />I'll make this real simple at the risk of being "granular". Remember, I'm reacting to <br />what is stated in your brochure. Words matter!! <br /> <br />1. Pleasanton Distribution Charges for Potable Irrigation will increase from <br />$.47/unit today to $2.99/unit in F'24, $4.23/unit in F '25 and $5.43 in F' <br />26. That's a 1,077% increase over the 3 years. It means at 18,500 units, <br />our Pleasanton Distribution bill goes from $9K, to $55K next year, to $78K in <br />F'25 and wait for it, $100K in F'26 <br />2. In their marketing brochure they say Pleasanton distribution costs are <br />going up 30% next year, then 20%, and 12% in F'26. Given the power of <br />compounding, that is a 75% increase, a wee bit shy of 1,077%. <br />3. They claim Zone 7 water rates will decline to $3.60/unit by F '26, despite the <br />fact Zone 7 has published rate increases that will be at $4.60/unit by <br />that time (5.5%/yr for 3 years with current rate of $3.93). For some <br />reason Pleasanton says they can adjust those rates downward, even though <br />they claim they are a "pass thru" retailer. <br />4. The explanation is that Zone 7 will get a fixed charge per meter of $138 to offset <br />published water rates. The brochure doesn't specify but it looks like it is an <br />"annual charge". Even if its bi monthly, the math is wacky. For instance, for our <br />2" irrigation pipes which pump 4K units a year, Zone 7 is supposed to accept <br />$1/unit less ($4K/yr) for water in exchange for a fixed charge of $828/yr <br />(assuming bi monthly). That makes no sense <br />5. They are trying to hide the magnitude of the Pleasanton charges, by including <br />Zone 7 costs in their denominator. They are a pass through agency in <br />terms of Zone 7 water cost. They claim they dont mark it up or discount it so <br />it shouldn't be in their calculations, except to reflect Zone 7's <br />announced/approved rate hikes for the next 3 years. <br />I would suggest that you create a proposed rate sheet for F'24, like the one you have <br />published for F'23. The folly of these Pleasanton rate hikes will be clearly visible to <br />everyone. <br /> <br />Why you need them was of course, never revealed in your brochure. I suspect it's so <br />Pleasanton can reopen, drill and operate contaminated wells. Why Pleasanton feels the <br />need to be a "water supplier" vs a retailer, is never explained. This whole thing is just <br />shocking. <br /> <br />Your link to explain how you dreamed this up will not work. It's something on your end.