Agency OKs Water District Annexation

A government agency on Wednesday voted to allow the Irvine Ranch Water District to take over the area served by the Santa Ana Heights Mutual Water Co.

Members of the Local Agency Formation Commission said they were swayed by Irvine Ranch’s promise to offer lower water rates than its rival, the Mesa Consolidated Water District, and because Irvine Ranch owns about 80% of the small, private water company that has served Santa Ana Heights since 1922.

The annexed area previously fell under the sphere of influence of Mesa Consolidated Water District.

Mesa Consolidated officials opposed the annexation because it gives Irvine Ranch a foothold in Mesa’s territory. They feared it could make Mesa Consolidated vulnerable to a takeover too.

And since Mesa Consolidated serves 181 residences in an island within Santa Ana Heights, the nine LAFCO commissioners asked Irvine Ranch to submit an application to take over that area as well.

Mesa Consolidated General Manager Karl Kemp said he was extremely disappointed with the commission’s decision, particularly because he did not know the island served by Mesa was up for grabs and had no time to prepare an argument against that move.

“I just don’t think that’s a good way to do business,” he said.

During the discussion, several commissioners said they may want to pursue merging Mesa Consolidated and the city of Newport Beach’s water agency with Irvine Ranch.

Irvine Ranch district’s General Manager Ron Young said that regardless of LAFCO’s desires, Irvine Ranch is not interested in taking over the water operations of either Newport Beach or Mesa Consolidated.

Mesa officials would not comment on the possibility of reviving a lawsuit it filed, and later suspended, against Irvine Ranch over the merger of Irvine Ranch and Santa Ana Heights.