CITY COUNCIL REGULAR SUPPLEMENTAL MATERIAL

SUPPLEMENTAL MATERIAL 3. In the last connection fee study, what was the maximum amount Pleasanton can charge? A. Attachment 4 to the Agenda Report includes the City's proposed fees for a new water connection, which is based on the size of the meter. Customers will also continue to pay a separate, additional Zone 7 water connection fee based on the fees adopted by the Zone 7 Water Agency. Zone 7's fees are based on meter size and type, with the City typically using Diehl meters up to 1-1/2" and OMNI 2" and greater. Customers should refer to the size and type of water meters on Zone 7's water meter connection fee table to determine the Zone 7 fee. The table can be found at: https://www.zone7water.com/sites/main/files/file- attachments/20250429 conn fee rate sched final - fs uadates.Ddf?1745966677 As an example, a customer requiring a new 3/4" domestic service water meter would be paying the following water connection fees starting on 1/1/2026: Pleasanton connection fees $ 7,664 Zone 7 Connection Fees $ 111,712 Customers requesting new water meter connections may contact the City of Pleasanton's planning and permitting office to receive actual cost estimates based on their specific water meter sizes. 4. If Pleasanton increased the connection fee, would that impact the rates? A. Water connection fees are one-time capital charges assessed for new developments to connect to the City's water system. These fees are used to recover the development's proportional share of expanding the existing water system to serve the new customers or recoup costs for previously constructed investments to accommodate the new growth and its water needs. Increasing connection fees does not typically impact water rates for existing users; instead, it affects the total cost for new customers requesting new water services and meters. While the proposed increase in connection fees during this study period will not change existing customer rates, it may influence future water rates by incorporating a "buy -in" component. The buy -in component reimburses existing customers for their prior investment in the water system related to unused capacity that can be used for future growth. This buy -in component thus provides additional revenue to help offset future rate increases as new growth occurs. 5. Why not use the State's revolving loan fund, rather than market lending? A. State Revolving Fund (SRF) loans are an excellent tool for large, long-term, or compliance -driven projects, but they are often too slow or restrictive for routine 'ra