DANA POINT : Consolidating Special Districts Considered

The City Council has directed its staff to prepare a report on consolidating the independent special districts in Dana Point, including those providing water, sewer and park services.

Although the council stopped short of suggesting that the city should take over these services, it voted 3 to 2 Tuesday night to study how the seven water-related agencies in the city might be restructured. In a separate item, the council also voted 4 to 1 to look at the possibility of merging the Capistrano Bay Park and Recreation District into a city department.

The city studies come at a time when special districts, particularly water and sewer agencies, are the focus of county consolidation efforts. In addition, the largest special district in the South County--the Santa Margarita Water District--is being scrutinized because of questionable spending by its top two managers and is the focus of federal and county investigations into possible conflict-of-interest law violations.

Mayor Karen Lloreda said that she asked for the studies to be considered by the council only in response to urgings from city residents.

“This is not a witch hunt,” Lloreda said. “There is nothing intended that the city wants to take over the districts. We’re just looking at options.”

City Councilman Mike Eggers said the council needs to educate itself about consolidation, exploring the costs and options. “There is a frenzy of consolidation. We have all read about it and heard about it,” Eggers said. “I think we need some information.”

City Councilwoman Judy Curreri adamantly opposed any merger or consolidation studies, however. Curreri, a nine-year member of the park district board, chastised the city staff for not even informing other directors that the council was making this step.

“I will not support this effort. I think it would be extremely unwise,” Curreri said.