Santa Clarita / Antelope Valley : City Ends Bid for Santa Clarita Water Co.

City officials here won’t be getting into the water business.

By a unanimous 5-0 vote, City Council members halted efforts to buy the Santa Clarita Water Co. on Tuesday, opening the way for the company to be bought by a wholesale water supplier in Castaic.

Some city officials had argued that buying the water company would give the city more control over growth and development. The Santa Clarita Water Co. serves about 20,000 of the city’s 50,000 water connections.

At the same time, the Castaic Lake Water Agency signaled that it too is interested in buying the company.

Mayor George Pederson said he voted against the idea because he strongly opposed the city running a water company.

‘We have so much to do, I can’t for the life of me figure out what we’re doing thinking about this,” Pederson said. “I object to this. I object to spending any money on consultants (for this). I object to spending money on stamps (for this).”

Others hope backing away from the water company bid will prompt the Castaic Lake Water Agency to drop a lawsuit filed last month against Santa Clarita’s $1.1-billion redevelopment plan.

The lawsuit said the post-earthquake Community Recovery Plan, which sets out ways to improve infrastructure, redevelop blighted areas and build affordable housing, actually reduces the water agency’s property tax revenue.

“Does that make the lawsuit go away?” asked Councilwoman Jan Heidt, who accused the water agency of using intimidation tactics with the legal action. “That’s what we all want, isn’t it?”

Castaic Lake Water Agency officials expressed pleasure at the council’s decision.

Although they said the lawsuit is unrelated to the competition to buy the water retailer, CLWA board President Mary Spring acknowledged the city’s decision will improve the relationship between Santa Clarita and the water agency.

“The agency has tried to keep that (lawsuit) as a totally separate issue,” Spring said. “Certainly, it takes away a lot of the controversy that has been raised for weeks.”