Sanitary and water districts reach settlement in legal fight, ending talk of merger

The Costa Mesa Sanitary and Mesa Water districts have reached a truce in their lengthy public feud over whether to consider a merger, announcing in a joint statement that the water district’s board “will not support consolidation” unless the sanitary district, which has consistently opposed the idea, “changes its position on the subject.”

As part of the settlement between the agencies, the sanitary district agreed to dismiss a lawsuit it filed last year alleging that Mesa Water had failed to provide certain requested documents. The sanitary district also agreed to withdraw its current public records requests.

In addition, Mesa Water and the sanitary district declared they will not support California Fair Political Practices Commission investigations of one another resulting from complaints against the districts.

“Our districts have a multi-decade history of providing outstanding water, wastewater and solid waste services in Costa Mesa, and we look forward to working collaboratively with Mesa Water on shared services and continuing to look for ways to improve efficiencies and cost-effectiveness for both agencies,” sanitary district board President Mike Scheafer said in a statement Monday.

Mesa Water board President Jim Atkinson said: “We are pleased that we have resolved the differences between our two districts. Mesa Water looks forward to continued collaboration with CMSD on matters important to both districts for the benefit of our shared customers and community members.”

This week’s announcement effectively ends a war of words the agencies have waged since 2016, when Mesa Water asked whether the sanitary district would join in studying the possibility of a merger.

In the months that followed, sanitary district officials accused Mesa Water of using flawed and misleading information to try to stage a takeover. Water district representatives rejected that criticism and said consolidation could result in millions of dollars in one-time and annual savings that might lead to rebates or lower rates for residents.

The quarrel eventually found its way to the ballot box in November 2016 with Measure TT, an advisory question asking voters whether they wanted the districts to look into a possible merger.

Though the measure passed with 54.7% of the vote, the consolidation front has been largely quiet — at least publicly — for months.

The sanitary district provides sewer and curbside trash collection services to about 116,700 ratepayers in Costa Mesa, parts of Newport Beach and unincorporated sections of Orange County.

Mesa Water provides service to about 110,000 people in an area that is similar, though not identical.

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