MISSION VIEJO : Council Opposes Bid to Buy Water District

Council members spoke out this week against the sale of the Santa Margarita Water District to a private company, saying the change would mean higher rates for residents.

The council unanimously approved a resolution urging rejection of the water district’s acquisition by California-American Water Co., a Chula Vista subsidiary of New Jersey-based American Water Works Co. Members cited a recently completed study indicating that Mission Viejo residents would see their water rates increase by 17% if the firm took over.

Mission Viejo is the water district’s fourth-largest customer, purchasing 117 million gallons annually.

“Mission Viejo ratepayers have already paid quite a bit for infrastructure improvements in the past,” Council Member Susan Withrow said.

“There is no guarantee they won’t be charged again,” she said, if the company acquires the district. “In this case, I don’t think privatization is a wise move.”

Council members also criticized the proposed $263-million purchase price, saying it was well below the district’s estimated $541-million value. And they questioned whether the parent company, being based out of state, would be as sensitive to residents’ needs as a public agency with locally elected officials.

Neither firm was represented at the meeting. City officials said it is not customary to notify non-residents of resolutions on the council agenda.