Agency Buys Santa Clarita Water Co. Despite Pending Lawsuit

The Castaic Lake Water Agency bought the privately held Santa Clarita Water Co. from the Bonelli family for $63 million Friday, despite a lawsuit challenging the acquisition.

The purchase will broaden the authority of the agency, which as a wholesaler in the Santa Clarita Valley plays a key role in determining future growth for the region.

The Santa Clarita Water Co. serves about 21,000 residential and business customers, mostly in Saugus and Canyon Country. Because state law bars the Castaic Lake Water Agency from acting as a retailer, the agency plans to contract with the water company’s existing management to run the business and set up a separate oversight board.

Even so, a lawsuit filed by Santa Clarita City Councilwoman Jill Klajic and others seeks to block the acquisition on grounds that it would violate state law.

The plaintiffs wanted the water company to be acquired by the city of Santa Clarita, which they believe would be more cautious in allotting water to new development.

Despite the opposition, the Castaic Lake Water Agency board voted last month to give agency executive Bob Sagehorn the authority to make the deal.

“Mr. Sagehorn is either crazy, reckless or desperate to pull a stunt like this, when he knows he’s being taken into court,” Klajic said.

Lynne Plambeck, another plaintiff, said the agency also should have sought voter approval before agreeing to the purchase.

But Bill Manetta, president of the Santa Clarita water company, praised the deal.

“It’s good for our customers and the Castaic Lake Water Agency, because it combines two systems, which will be the most efficient,” Manetta said.

Anderson is a Times Community News reporter.