Livermore council reports settlement in Alameda County Taxpayers Association lawsuit, approves utility credits and fees

Following a closed session, the council disclosed Sept. 8 that it had approved a settlement and mutual release resolving Alameda County Taxpayers Association and Alan Heckman v. City of Livermore, Alameda County Superior Court case number 23CV047436, the acting city attorney told the council.

According to the report made on the record, the settlement directs a credit to the city’s water utility of $1,562,379 and a credit of roughly $2.22 million to the sewer utility; it also directs creation of a restricted fund for street pavement maintenance paid by the water and sewer utilities, cessation of right‑of‑way rent charges under the methodology described in the 2009 MGT of America study, and payment of $271,000 in attorneys’ fees. The council authorized the city manager to execute the settlement agreement and mutual release.

City attorneys read the statutory authority underlying the closed‑session disclosure into the record. The report referenced Government Code provisions cited during the meeting and stated that the council had voted unanimously to approve the settlement and mutual release.

The settlement, as reported, resolves claims concerning transfers of funds from the city’s water, sewer and stormwater enterprises to the general fund. City staff did not present additional financial detail on the restricted pavement fund or the precise schedule for application of the credits during the meeting; the acting city attorney said the manager was authorized to execute the settlement agreement.

Council members took no further action at the public meeting on additional litigation steps. Staff follow‑up on implementation of the credits and fund creation is expected to be handled administratively and reported back if necessary.