|
Getting your Trinity Audio player ready...
|
After more than a year since Zone 7 Water Agency filed a lawsuit against the city of Pleasanton alleging it failed to pay over $18 million in connection fees, the two entities have reached a settlement agreement, city officials confirmed Friday.
The city and Zone 7 officially entered the agreement on Thursday, reaffirming both agencies’ commitment to collaboration and their shared responsibility in providing safe, reliable water for the community, officials said.
As part of the settlement, the city and Zone 7 will revise the existing agreement that governs how connection fees are collected, bringing greater clarity to each agency’s roles and responsibilities moving forward. Additionally, together they will complete the city’s planned water meter replacement project within three years.
The city of Pleasanton will contribute $250,000 to Zone 7’s PFAS Treatment Project using settlement proceeds the city received through its participation in lawsuits against 3M and other companies who have manufactured and distributed products containing PFAS and provide Zone 7 with a $500,000 credit toward future land acquisition needed for the PFAS project or another Zone 7 project in Pleasanton.
“Zone 7 is satisfied with the agreement and considers this matter resolved,” said newly installed Zone 7 board President Kathy Narum in a statement to the Weekly.
“We will not be providing additional comments on the underlying legal issues that led to this lawsuit, however, the legal documents and settlement agreement are publicly available documents for further information. Zone 7 will continue to work with all our partners in the Tri-Valley to provide a reliable and high-quality water supply,” added Narum, who served on the Pleasanton City Council before joining Zone 7.
The lawsuit, originally filed by Zone 7 in January 2024, claimed that the city under-collected more than $18 million in Zone 7 water connection fees related to the installation of upgraded water meters and other water meters between 2015 to 2022.
However, the city has consistently disagreed with the water agency’s claims. In the July 18 statement announcing the settlement, officials said that the city “remains confident in its interpretation and application of Zone 7’s fee ordinance”.
“Throughout the legal process, the City has maintained that it acted appropriately and in good faith, consistent with its long-standing agreement with Zone 7 dating back to 1972,” officials said.
Despite doubling down on its initial position, the city ultimately lauded the new agreement as a positive outcome for both parties.
“This agreement reflects our desire to move forward in partnership, focus on the future, and continue addressing regional water challenges together,” said Pleasanton City Manager Gerry Beaudin. “We appreciate the opportunity to resolve this matter outside of court and in a way that allows both agencies to continue serving our shared community.”
