IRWD pours $25 million into city coffers

Noaki Schwartz

NEWPORT BEACH -- The city has brokered a deal to get $25 million from the

Irvine Ranch Water District pending the annexation of Newport Coast.

Newport would get $15 million upon annexation and the remaining $10

million over the next six years. City Manager Homer Bludau said the City

Council would determine how to distribute the money. He added that

portions will be used to pay for improvements within Newport Coast if it

is annexed.

“This guarantees that [Newport Coast residents’] water rates will never

go higher than other parts of the district,” Bludau said.

The issue of Newport Coast residents getting the same city services as

Newport is one of the proposals residents submitted to the city in order

to agree to annexation. Other proposals included the creation of a

unified neighborhood and property tax relief.

Jim McGee, a spokesman for Newport Coast residents, could not be reached

for comment.

“The residents are paying a lower cost than if Newport were providing the

service,” said Deputy City Manager Dave Kiff, adding that the city’s fee

would be about three times higher.

The city had been negotiating with the the water district for months

before coming to this agreement. The district serves 8,000 customers, and

it would cost about $100 million for Newport to buy the facilities.

Moreover, because the district gets tax for water and Newport doesn’t, it

could offer cheaper rates for residents.

“We were interested in continuing to serve those customers and we think

we can do a good job,” said Joyce Gwidt, the water district’s

spokeswoman.

The city began what will be the largest annexation in the history of

Newport in October. It will include Newport Coast, Santa Ana Heights and

Bay Knolls. And after more than a year of negotiating with the 9,500-acre

community, the council filed a formal application with the Local Agency

Formation Commission, the state-created body governing incorporationand

annexations.

So far, negotiations have been optimistic -- a significant change from

two years ago when Newport Coast residents ended negotiations with city

officials to pursue the possibility of becoming an independent city.

Talks resumed again in February after the November elections challenged

the makeup of the council, and city leaders made annexation a definitive

goal for the year.

McGee previously cited a lack of good information as the reason behind

the Newport Coast residents’ initial rejection of the annexation effort.

Their protestations were eventually tempered by the realization that

cityhood would be more difficult than annexation.

“We feel comfortable that part or all of the annexation of Newport Coast

will go through,” Bludau said.

The city will file a completed application to the commission in February

and should have a hearing set by April.

FYI

Readers can get more information on the annexation proposal at

www.city.newport-beach.ca.us