PLEASANTON, Calif. — The City of Pleasanton and the Zone 7 Water Agency have reached an agreement that brings closure to a legal dispute filed by Zone 7 in early 2024 regarding the collection of water connection fees. The City and Zone 7 entered into a Settlement Agreement on July 17, 2024, reaffirming both agencies’ commitment to collaboration and their shared responsibility in providing safe, reliable water for the community.
The City has an agreement with Zone 7 to collect Zone 7’s water connection fees. In 2016, the City upgraded its water infrastructure by installing new ultrasonic water meters with automatic reading and leak-detection capabilities. At that time, the new meters were presented at a City Council meeting, and staff held two community workshops about the meters and the replacement process.
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 the upgraded water meters and other water meters. The City has consistently disagreed with the claims and 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.
“This agreement reflects our desire to move forward in partnership, focus on the future, and continue addressing regional water challenges together,” said Gerry Beaudin, Pleasanton City Manager. “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.”
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;
- Complete the City’s planned water meter replacement project within three years;
- 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.
The City has continued to be transparent throughout this process, keeping the community informed and maintaining open lines of communication with Zone 7. The two agencies have remained active partners on other important initiatives, including the recent Joint Groundwater Well Study, which is exploring the feasibility of constructing groundwater wells to expand Pleasanton’s local control of its water supply.
With the dispute resolved, the City looks forward to continued collaboration with Zone 7 to address shared priorities such as drought resilience, long-term water supply planning, and environmental stewardship.
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