Judge Refuses to Block Water District Merger

An Orange County Superior Court judge recently denied a preliminary request from Mesa Consolidated Water District to stop the planned merger of Santa Ana Heights Water Co. and Irvine Ranch Water District.

However, Mesa Consolidated officials said they plan to proceed with the lawsuit filed in May against Santa Ana Heights Water Co. and its directors.

In the lawsuit, Mesa Consolidated alleges that Irvine Ranch’s offer to buy the shares is illegal, because Santa Ana Heights Water Co.’s bylaws prevent the sale of shares given to landowners in Santa Ana Heights.

Irvine Ranch district and Mesa Consolidated have squabbled over who should take ownership of the tiny Santa Ana Heights Water Co. since early this year.

The directors of Santa Ana Heights Water Co. recently voted to accept Irvine Ranch’s offer to buy out their company.

Mesa Consolidated officials have been vocal in their opposition to the merger, saying they fear eventually being consolidated with Irvine Ranch, if the larger water agency suddenly has a presence in Mesa’s service area.

Irvine Ranch’s proposal still must be approved by the county’s Local Agency Formation Commission, which rules on modifications to government agencies.