Livingston city rate increase sued for 2nd time

The city of Livingston is in legal hot water again because of its controversial water and sewer rate hikes.

This time a group of Livingston residents is suing the city with the help of a local legal aid group.

The lawsuit, filed on behalf of seven Livingston residents, claims the city failed to properly notify its citizens about the fees and the hikes, illegally passed the fees. It also alleges the city plans to use the funds from the fees for uses not allowed by state law.

The lawsuit was filed Nov. 30 in Merced County Superior Court by Central California Legal Services.

"The city pulled this one out of the Nixon playbook," said David Friedman, a lawyer for the plaintiffs, of the city's passage of the rate increases.

The city's attorney, Jonathan Hobbs, said he does not comment on pending lawsuits.

But Mayor Daniel Varela, one of the three council members who voted for the increases, said the process they used to pass the rate hikes was legal.

This is the second suit filed against the city this year because of its sewer and water rate increases. The first is still pending and was filed July 14 by Foster Farms.

The new suit lays out a series of alleged illegal actions by the city in its steps to raise water and sewer rates.

"This case arises out of the passage of two resolutions by the city of Livingston that dramatically and illegally raised plaintiffs' water and wastewater expenses," noted the lawsuit.

The suit argues those resolutions, passed July 7, circumvented state law. When the city couldn't pass a rate hike ordinance with a supermajority, as state law requires, the council instead passed a resolution with a simple majority, against the advice of their lawyer. Then they fired her, relays the suit. "After at least five failed attempts at passing an increase to the water and wastewater rates, the city began engaging in a series of tactics to circumvent constitutional and legal requirements of passing such resolutions," says the suit.

The suit also alleges the city failed to explain the nature of the price increases and failed to properly notify residents of the looming rate hikes.

The suit alleges the city did not send out notices in the two languages, besides English, that are predominant in Livingston -- Punjabi and Spanish. Additionally, the city continually moved the hearing dates on the issue.

Before the rate increase was voted on, the city had to go through a Proposition 218 process. The counting of Proposition 218 protest votes, which is required before any rate hike goes into effect, also did not meet up to legal standards, alleges the suit.

Lastly, the lawsuit says the revenues generated from the rate hikes far exceed what is needed to run the sewer and water systems. "`By cloaking a fundraising effort as a water and wastewater rate hike, the city seeks to pad its general fund, rid itself of the residue of years of mismanagement, and recoup tax shortfalls caused by the general economic decline," says the suit.

The city has yet to file its reply to the lawsuit.

Reporter Jonah Owen Lamb can be reached at (209) 385-2484 or jlamb@mercedsun-star.com.