Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Water Connection Fees topic
No spam. Unsubscribe anytime.
Council approves new water connection fee formula; single‑family buy‑in set at $5,269 per equivalent meter
Summary
Council adopted staff recommendations to switch to a hybrid connection‑fee method combining an existing‑system buy‑in and an incremental expansion charge; the new combined charge for a 5/8‑inch equivalent meter is $5,269 and will be indexed by CPI annually.
Pleasanton — The City Council on June 3 approved a revised structure for water connection fees that combines a buy‑in to the existing system with an incremental cost for future capacity, producing a combined fee of $5,269 per equivalent 5/8‑inch meter.
Staff described connection fees as one‑time charges paid by new development to ensure that growth pays for growth. "The concept behind why we have connection fees in the first place is to make sure that growth pays for growth and that there is a level of financial equity between existing customers and new customers," a Water Resources Economics consultant told council.
Nut graf: The new hybrid method divides system value between the existing system (replacement cost less depreciation) and future‑capacity projects in the city’s Water Supply and Master Plan (WSMP). The buy‑in component is intended to compensate for capacity already paid for by existing ratepayers; the incremental component covers planned expansion projects that will serve new customers.
Staff presented the financial breakdown: the buy‑in component was calculated from a current system valuation of about $102 million divided by current equivalent meters, yielding approximately $2,444 per equivalent meter. The incremental component tied to WSMP expansion projects totaled roughly $2,825 per equivalent meter; combined, the hybrid fee is $5,269 per equivalent meter unit. For comparison, Livermore’s current published fee is about $5,462, while Dublin’s published fee is roughly $15,670.
Council approved staff’s recommendation to adopt the hybrid formula and to index the charge annually by CPI. The motion carried on a unanimous roll call (5–0).
Ending: Staff said the new fees are intended to better align Pleasanton’s growth revenues with planned capital projects and to reduce the extent to which existing ratepayers subsidize system expansion. Zone 7 connection fees and other regional charges remain separate and would still apply where relevant.
