Irvine Ranch Water District Pursuing Merger

IRVINE — Irvine Ranch Water District officials said that the utility has gained a controlling interest in the Santa Ana Heights Water Co. More than 50% of the shares in the private mutual water company have been signed over to the district, officials said.

That does not mean however, that the merger is complete, district board member Peer Swan said.

The first goal, gaining the majority of the shares, has been reached. But the merger still has to be approved by the Santa Ana Heights Water Co. board and the county’s Local Agency Formation Commission, which rules on governmental consolidations and reorganizations.

Though it does not expect any problem getting approval from the Santa Ana Heights board, the district may have some trouble getting the county agency to sign off on the deal because the merger is being contested by Mesa Consolidated Water District.

Mesa Consolidated has also asked the commission to rule that it is the agency with which Santa Ana Heights should be merged. Though both IRWD and Mesa Consolidated border the area served by Santa Ana Heights, Mesa officials say they are more familiar with the system because they have serviced it for decades.

Also, when Mesa Consolidated built a reservoir two years ago, it was designed to serve both Mesa Consolidated and Santa Ana Heights customers.

Swan said he and other IRWD officials believe their agency would offer Santa Ana Heights customers a better deal.

“We have a first-rate system, the company is really well financed, and we have the lowest water prices in the county,” Swan said. “All those things add up to a good deal.”

Officials of IRWD and Mesa Consolidated said they do not know when LAFCO will rule on their respective applications.