City Looks at Charter Law, Privatized Water

The City Council has directed its staff to investigate two major proposals: privatizing the water utility and converting from general law to a charter city.

“I think we’d be remiss if we didn’t look into these [options],” Mayor Charles V. Smith said.

Westminster should consider privatizing its water system because budget constraints have postponed many repairs and upgrades, City Manager Bill Smith said.

In 1991, the city identified $7 million in repairs and improvements to the water system. So far, about $1 million has been spent, Smith said.

“We’re not saying there’s a crisis in our water supply, but there will be,” he said. If the water system were sold or franchised, Smith said, the city could stipulate that rates could not be raised for a specified time, and could require that city employees be hired by the private company.

The council voted 3-2 to solicit bids from companies interested in operating the water system.

Councilwoman Margie L. Rice voted against it. She said she opposes privatization of city services. Councilman Frank Fry Jr. also dissented and said he thinks water rates would increase if the system were sold.

The council was in agreement, however, on looking into a charter city form of government. Conversion to a charter, which officials said would give the city more autonomy, would require voter approval. General law cities are governed by state laws while charter law cities are governed by locally created laws.

“The issue is one of independence and control,” Smith said. “All of us in city government have fears about the encroachment of the state of California. This could preclude some of those encroachments.”

About 75 California cities operate under a charter, including Irvine and Cypress.