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Charles Abney .•. Pleasanton, CA 94566 City of Pleasanton ATTN: City Clerk—Proposed Utility Rates 123 Main Street or P.O. Box 520 Pleasanton, CA 94566 This letter is a protest to the proposed Pleasanton Water and Sewer rates based on the following comments: My Parcel number is: 946-3409-012-00; Pleasanton Utility Billing Account Number: 23707; 1 am a Pleasanton Utility Billing Account Holder submitting the protest with the above noted address in my letter head and the enclosed Pleasanton account information. Rate increases are based on a 4-year-old draft Cost of Service study dated 2019 (not updated due to COVID) and a final update of the Water and Recycle Water Rate Study dated August 04, 2023, provided to the residents of Pleasanton. These reports are focused on current and projected operating costs, rates, and revenue with a focus on immediate infrastructure improvements and a safe and reliable quality water supply. Pleasanton residents are asked to support 30% increases on November 1, 2023,20% increase on January 1,2025, and a 12% increase January 1,2026 with only short-term financial goals. Most of the plan shortfalls are due ... to cost of purchased water, funding required to meet reserves and capital improvement increases. Current Pleasanton city water rates were implemented February 1, 2023, and are identified as insufficient rates 6 months later in the August 4, 2023, update. New bonds are being proposed to finance capital improvements and the current approach to solving our long-term water delivery system is being approached in a piece meal fashion without a big picture plan. That promotes piece meal rate increases and floating bonds to solve capital shortfalls. The City of Pleasanton is currently receiving water from a single source supplier (Zone 7) and is totally dependent on their ability to reduce waste, increase efficiency and contain cost growth. Prior to November 2022 the City of Pleasanton pumped approximately 20-25% of its water requirement from its local wells. Wells 5-6 have been held in reserve as a contingency and well 8 is completely offline with no current plan to resolve the PFAS contamination (excluding bonds and sole source zone 7 capital and pass through costs). This means that the City of Pleasanton will pass through all Zone 7 fixed and variable cost increases with no current plan to regain the 20-25% loss of ground water well production. Zone 7 cost will increase by approximately $3.7M (based on Table 2-13 of the August Report) in the three fiscal years to meet City water Supply requirements. It should be noted that table 2-15 displays a purchased water & recycled water increase over the same fiscal years of$6.4M. Table 2-20 displays a $2.4M Cost of Purchased Water-Recycled Water. Recycle water irrigation were assumed to remain constant. Opportunity to reduce water demand by increasing recycle water for irrigation was not considered in the rate and revenue analysis. Capital projects for FY 2024-2026 are dependent on plan approval and a $6M loan to