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City of Pleasanton
<br />2025 Water Rate Study
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<br />Water Resources Economics
<br />18
<br />PROPOSED WATER CONNECTION FEES
<br />Table 1-17 shows the water connection fee calculation based on the Hybrid Method. Buy-in costs are
<br />allocated to the current system and incremental costs are allocated to the future system. The proposed
<br />water connection fee per equivalent dwelling unit (EDU) is the sum of the current system and future
<br />system unit costs (Line 4).
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<br />Table 1-17: Water Connection Fee Calculation
<br />Line Connection Fee Calculation Current
<br />System
<br />Future
<br />System Total
<br />1 Existing System Value (Buy-In) $102,339,948 $0 $102,339,948
<br />2 Future User CIP (Incremental) $0 $23,173,658 $23,173,658
<br />3 Equivalent Meters Served 41,880 8,205 50,085
<br />4 Connection Fee per EMU $2,444 $2,825 $5,269
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<br />Table 1-18 shows the proposed water connection fees based on the results of the water connection fee
<br />study. The per EDU cost (Table 1-17, Line 4) is then multiplied by the EDU ratios to determine the
<br />appropriate fee for each meter size. EDU ratios were provided by City staff based on the nominal meter
<br />capacities for actual meter types that will be installed for new customers connecting to the water
<br />system. Proposed water connection fees will effective starting January 2026 and are increased based on
<br />CPI for each subsequent year.
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<br />Table 1-18: Proposed Water Connection Fees
<br />Line Meter Size Capacity
<br />(gpm) Meter Ratio Incremental
<br />Fee
<br />Buy-In
<br />Fee
<br />Total
<br />Fee
<br />1 5/8" 22 1.00 $2,825 $2,444 $5,269
<br />2 3/4" 32 1.45 $4,109 $3,555 $7,664
<br />3 1" 55 2.50 $7,063 $6,110 $13,173
<br />4 1 - 1/2" 100 4.55 $12,841 $11,109 $23,950
<br />5 2" 200 9.09 $25,682 $22,218 $47,900
<br />6 3" 500 22.73 $64,205 $55,545 $119,750
<br />7 4" 1,250 56.82 $160,511 $138,864 $299,375
<br />8 6" 2,500 113.64 $321,023 $277,727 $598,750
<br />9 8" 3,500 159.09 $449,432 $388,818 $838,250
<br />10 10" 5,500 250.00 $706,250 $611,000 $1,317,250
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<br />Figure 1-7 shows the current and proposed water connection fees relative to the connection fees of other
<br />nearby agencies who also import water from Zone 7. Currently the City has the lowest connection fee
<br />relative to other agencies, and after the proposed changes, the City’s connection fees remain the lowest.
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