ITEM 24 ATTACHMENT 2 - Laserfiche WebLink

June 27, 2025 Siew-Chin Yeong Director of Public Works City of Pleasanton P.O. Box 520 Pleasanton, CA 94566 Subject: City of Pleasanton Water Rate Study Report Dear Ms. Yeong, Water Resources Economics, LLC (WRE) is pleased to submit this 2025 Water Rate Study Report to the City of Pleasanton (City). This report documents the results and recommendations of the City’s water rate study. The goal of the study was to develop a four-year schedule of water, recycled water rates, and drought rates that will sufficiently fund the City’s water and recycled water system expenses, allow the City to meet its financial goals within the study period, and comply with cost-of-service principles. This study utilized industry-standard rate-setting methodology in accordance with guidelines developed by the American Water Works Association and incorporates guidance provided by the City’s Council and Pleasanton Water Advisory Group (PWAG). Our project team has a proven track record of developing fair and equitable water rates for numerous public water agencies in California over the past 25 years. We are confident in our ability to develop sound water rates that satisfy the requirements of Proposition 218. The City’s water connection fees, which are one-time fees charged to new customers connecting to the water system, were also updated in this study based on the most up-to-date asset valuations and capacity data. The proposed connection fees have been prepared using the hybrid methodology and in accordance with the requirements of Proposition 26. It has been a pleasure assisting the City, and we appreciate the support provided by yourself, Mr. Todd Yamello, the City Council, and other City staff during this study. Sincerely, Sanjay Gaur Nancy Phan Founder / President Principal Consultant