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This memorandum discusses the settlement of a government claim filed by Gordon Biersch Brewing Company against the City of San Jose regarding alleged sanitary sewer rate overbilling. The recommendation is to approve a settlement of $400,000 and authorize the City Attorney to execute a Settlement Agreement. The settlement aims to avoid litigation costs and resolve all claims related to wastewater services provided by the City to Gordon Biersch. The settlement will be funded from the City's claims reserve fund.
Key points
Council agenda date is June 16, 2026.
The matter file is 26-733.
The subject is the settlement of a government claim by Gordon Biersch Brewing Company.
The settlement amount is $400,000.
Each party will bear its own costs and attorneys' fees.
Gordon Biersch alleges overbilling since 1997.
The City disputes the allegations regarding sanitary sewer rate methodology.
The settlement will extinguish all claims related to wastewater service.
The memorandum has been posted on the City’s website for public access.
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Extracted text preview · 3,283 chars
COUNCIL AGENDA: 6/16/2026 FILE: 26-733 ITEM: 2.7 TO: HONORABLE MAYOR AND CITY COUNCIL SUBJECT: SETTLEMENT OF GOVERNMENT CLAIM BY GORDON BIERSCH BREWING COMPANY FROM: SUSANA ALCALA WOOD, City Attorney DATE: June 1, 2026 RECOMMENDATION Approve the settlement of a government claim filed by Gordon Biersch Brewing Company in the total amount of $400,000 and authorize the City Attorney to execute a Settlement Agreement. OUTCOME Settlement of a government claim filed by Gordon Biersch Brewing Company in the total amount of $400,000. Each side will bear its own costs and attorneys’ fees. BACKGROUND The City of San Jose’s sanitary sewer billing program is the system used to recover the costs of operating and maintaining the City’s sanitary sewer collection system. It is a cost-recovery program that establishes costs in the budget for both operating and capital costs in accordance with Proposition 218 requirements. Gordon Biersch Brewing Company, a brewery located in San Jose, is a monitored industrial customer for purposes of its sanitary sewer rate billing. Monitored industrial users are non-residential users of the sanitary sewer collection system that discharge more than 25,000...
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The source text indicates this attachment appears to be a draft document.
This Settlement Agreement and Release is made between Gordon Biersch Brewing Company and the City of San Jose to resolve a dispute regarding alleged sanitary sewer rate overbilling. Gordon Biersch claims it is owed money for overbilling since 1997, which the City disputes. The Agreement includes a total settlement amount of $400,000, with specific payment terms and conditions. Gordon Biersch agrees to release all claims against the City related to wastewater services. The Agreement outlines additional terms regarding sampling protocols and the responsibilities of both parties. It is stated that the payment does not constitute an admission of liability by the City.
Key points
Parties involved: Gordon Biersch Brewing Company and the City of San Jose.
Dispute involves allegations of sanitary sewer rate overbilling since 1997.
Total settlement amount is $400,000.
Payment includes specific terms and conditions, including a quarterly payment schedule.
Gordon Biersch releases all claims against the City related to wastewater services.
Agreement includes ongoing sampling protocols and responsibilities for both parties.
Payment does not admit liability by the City.
Limitations
The document appears to be a draft, indicated by the repeated mention of 'DRAFT' and contact information for the City Clerk for the final document.
Some sections contain unresolved placeholders, such as dates and signatures.
Generated for convenience from extracted text using AI. Review the official source document before relying on this summary.
Extracted text preview · 11,766 chars
SETTLEMENT AGREEMENT AND RELEASE This Settlement Agreement and Release ("Settlement Agreement") is made by and between Gordon Biersch Brewing Company (“GB’) and the CITY OF SAN JOSE ("CITY"). "Parties," when referenced herein, include GB and CITY collectively. WHEREAS, on October 17, 2025, GB filed a government claim with CITY alleging it was owed certain sums of money for alleged sanitary sewer rate overbilling since 1997 (the “Government Claim”); WHEREAS, CITY disputes all allegations from GB’s Government Claim relating to sanitary sewer rate methodology and rates including that GB’s sanitary sewer bills are inaccurate or excessive or that GB has been overbilled for any of its sanitary sewer rates (the “Dispute”); WHEREAS, the Parties now mutually desire to resolve the Dispute to avoid the cost of litigation and, therefore, undertake to settle the Dispute in its entirety by entering into this Agreement pursuant to which GB releases and extinguishes on a final basis ail claims of any and every kind, nature, and character, arising from or related to wastewater service provided by CITY to GB, including but not limited to CITY’s charges for said service; NOWTHEREFORE, the Parties...