Pleasanton council approves major sewer-rate package to fund pipe inspections and repairs

Pleasanton City Council on Tuesday approved a multi-year sewer-rate structure and updated sewer connection fees aimed at closing an operating deficit and funding long-deferred infrastructure work.

The council adopted staff'recommended "scenario one: maintain," which right-sizes sewer-collection revenue to support operations, ongoing CCTV inspection work, force-main valve assessments and a capital improvement program financed in part with $28 million of debt. The motion passed by roll call vote with all members voting yes.

"The purpose of the sewer rate study is to evaluate whether the city current sewer rate generates sufficient revenue to support both operation needs and the future investment required to maintain a reliable sewer system," Public Works Director Suchin told the council as staff laid out system statistics, including about 253 miles of gravity mains and roughly 21,000 service connections.

Consultant Nancy Pan described the cost-of-service approach that shifted more cost to commercial customers and proposed consolidating condo and multifamily rates. Pan flagged a "large" first-year collection increase in 2027 driven by right-sizing revenue after long periods of only CPI-based adjustments.

City staff also presented a buy-in method for connection fees, valuing the collection system at just over $75 million and proposing a collection-only residential connection fee of about $2,250 per equivalent dwelling unit (EDU).

Council members pressed staff on local inequities and system condition. Vice Mayor asked whether connection fees are set at plan submittal or application completion; staff said fees are locked in at the time an application is deemed complete. Council members raised a longstanding Ruby Hill issue where some residents effectively pay multiple collection charges; staff recommended a focused, standalone analysis if council wants to pursue relief.

Officials underscored the scope of deferred work. "We have started a first-time, comprehensive inspection program for force mains," staff said during Q&A, noting many valves and pressurized components are five decades old. Staff said CCTV inspection goals are in progress and the observed failure rate in inspected segments is consistent with assumptions used in the financial plan.

Short-term next steps: staff will return in July with the final sewer rate study report and a Prop 218 mailing to property owners. A public Prop 218 hearing is scheduled for November; if adopted, rates would take effect Jan. 1, 2027.

The council voted to approve the structure and fee updates; the motion was seconded and carried unanimously. The approval authorizes staff to complete the public-notice process required under Prop 218 and to continue the inspection and CIP work outlined in the study.