Sanitary district officials allege ‘takeover bid’ by Mesa Water
Costa Mesa Sanitary District officials are criticizing their counterparts in the Mesa Water District for approving hundreds of thousands of dollars in spending on what the sanitary district alleges is a takeover bid.
The sanitary district’s condemnation — which is posted on its website along with an accounting of the spending — is the latest twist in its back-and-forth with Mesa Water over the possibility of consolidating the two agencies’ operations.
Mesa Water has “already authorized spending well over $300,000 as part of its desired takeover,” sanitary district board President Mike Scheafer said in a statement.
“They’re spending money on flawed information, on trying to manipulate the public on consolidation,” sanitary district General Manager Scott Carroll added Friday.
Officials with the water district, though, have rebuffed those criticisms and say the spending is justified given the possible savings a merger could bring.
The money is also flowing both ways, Mesa Water officials point out. The sanitary district anticipates spending more than $66,000 on the issue by November.
“Mesa Water is spending money to pursue consolidation and save money for ratepayers,” Mesa Water External Affairs Manager Stacy Taylor wrote in an email Friday. “Conversely, the Costa Mesa Sanitary District is spending money to not consolidate and not save money for ratepayers.”
A study Mesa Water commissioned showed the financial benefits of combining the districts could be significant — roughly $15.6 million in one-time savings and an additional $2.7 million annually.
According to the study, prepared by consultant Arcadis U.S. Inc., the savings could result in a $650 rebate for each customer and up to a 28% reduction in wastewater rates.
“It is our public duty to continuously explore and improve cost efficiencies in providing high-quality local government services to our community,” Mesa Water Board President Shawn Dewane said in a statement Friday. “In exploring how to reduce the size and cost of local government, Mesa Water has discovered that substantial savings can result from consolidating with the Costa Mesa Sanitary District, and we are now sharing that information.”
The sanitary district claims the Arcadis study is flawed and inaccurate. Mesa Water officials say they stand by its findings.
Voters will get the chance to give their two cents on the matter this fall. Mesa Water has placed an advisory question, designated as Measure TT, on the Nov. 8 ballot to gauge public support for the concept of consolidating.
Commissioning the study and putting the measure up for a vote are among the costs Mesa Water has racked up for what it calls the Special Districts Shared Efficiencies project.
The district’s approved spending on the project includes:
- Up to $79,960 for Arcadis to do the merger study and perform additional as-needed services
- Up to $88,000 in educational outreach efforts
- An estimated $66,628 to place Measure TT on the ballot
- Up to $50,000 to retain the Communications Lab firm for community relations and education services for the Shared Efficiencies project and others assigned by Mesa Water
- Up to $25,000 to the Lewis Consulting Group for government relations services
All those costs are covered by Mesa Water’s available cash on hand, Taylor said.
The water district has also retained the Rutan & Tucker law firm for legal services supporting the project. The cost of those was unavailable Friday.
Public records obtained by the sanitary district and shared with the Daily Pilot also show Mesa Water spent $21,076 to commission a study from another firm, LA Consulting Inc., also examining the possible financial benefits of a merger.
That study, also provided by the sanitary district, estimated combining the services of the two agencies could result in $2.2 million in annual savings.
Taylor characterized that study as “a preliminary draft.” The Arcadis study, she said, was more comprehensive.
The sanitary district’s anticipated spending encompasses:
- $30,000 to retain Roger Faubel Public Affairs Inc. for community outreach
- $24,526 in legal costs
- $9,834 to mail postcards for the “State of the District” meeting on Oct. 19
- $1,783 for the district’s treasurer, Marc Davis
Carroll said Mesa Water’s spending, and that of his own district, could have been avoided if more discussion had taken place ahead of the Arcadis study.
Information obtained through public record requests, Carroll said, shows Mesa Water officials began discussing the possibility of a merger more than a year before they reached out to the sanitary district.
“This tactic they’re using, it’s not being transparent and open,” he said of Mesa Water. “We’re spending $65,000 on this, which could have been avoided.”
To view the Arcadis study, and other documents related to the Special Districts Shared Efficiencies project, visit mesawater.org/sdse.
To view the sanitary district’s rebuttal to the study and other information, visit cmsdca.gov.
Twitter: @LukeMMoney
