Zone 7 water rate study underway in advance of Aug. 26 meeting

Consultant to advise agency if current water rates are financially sustainable

The Zone 7 Water Agency is undertaking a rate study to determine whether the agency's current water rates are financially sustainable.

The water board decided to contract Raftelis Financial Consultants to conduct the study, which is not to exceed $100,000, according to the agency. Preliminary results of the study will be discussed at a special board meeting on Aug. 26.

A years-long drought has affected the agency's revenues and reserves, and such a study will review the agency's finances, including its budgets, the funding needed to put the agency's capital improvement and asset management plans into effect, findings from the Water Supply Evaluation and recent audits.

The study will also analyze the cost of service and will propose a three-year wholesale water rate, which will go before the water board this fall. It will also propose a drought wholesale rate that can be incorporated into the forthcoming Urban Water Management Plan, which will be adopted by the board in the spring.

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7 people like this
Posted by jim rose
a resident of Donlon Elementary School
on Aug 3, 2015 at 9:47 am

why would you spend a hundred thousand dollars for advise that the water district should already be paid for to know ? It always behooves me to see agencies pull in outside consultants to inform them how to screw up the system, when these people that are in charge of this agency are getting paid to do this very thing/job then pass along the cost to the people. The consultants are the only ones making any thing out of this, then run off with bundles of cash, nice work if you can get it.

5 people like this
Posted by Map
a resident of Del Prado
on Aug 3, 2015 at 11:26 am

Hey, I'll do that study for 99,999,99 and I'll bet that I will come up with the same results as those "consultants". They are going to raise the rates, it's a no brainier!!! Doesn't any local agency make decisions on their own any more???? What are they getting paid for?? Glorified seat fillers!

6 people like this
Posted by Lee
a resident of Another Pleasanton neighborhood
on Aug 4, 2015 at 8:33 am

No need to pay an outside consultant...the water company already knows it will raise rates. Take the consultant's money and use it towards the new rates! Only question is when they will raise the rates.

2 people like this
Posted by Fed Up with the Nanny State
a resident of Gatewood
on Aug 7, 2015 at 10:55 am

The recent letter from the City of Pleasanton describing what the proposed increases in water, sewer, and meter rates will be never mentioned any studies made or work done to cut costs. Maybe they did look into cost cuts to mitigate price increases, but none were mentioned. Price increases should not be the first remedy to the proposed inflation linked cost increases. Businesses generally look to cut costs in order to be price competitive before raising prices-- Monopolistic utilities need to do the same.

5 people like this
Posted by Map
a resident of Del Prado
on Aug 7, 2015 at 11:20 am

Pretty slick letter they sent us what did it cost to research and print that one up??? Did an outside firm put that one together??? Should have looked at it a little closer as it went from my mailbox to my recycle can, a distance of about 15 feet. Just raise our rates and quit spending "our" money to justify it.

Like this comment
Posted by justwondering
a resident of Another Pleasanton neighborhood
on Aug 7, 2015 at 1:27 pm

Map, passage of Prop 218 by the voters mandated a notice be sent out to residents before a rate increase can be considered. I agree that it just adds more cost to delivering the service. This is an example of unintended consequence of a voter sponsored initiative.

Sorry, but further commenting on this topic has been closed.

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