Irvine Ranch, Santa Ana Water Agencies Merge

Despite a lawsuit seeking an injunction to block the deal, the Irvine Ranch Water District and the Santa Ana Heights Water Co. completed their merger Friday.

“At last, the will of the majority has prevailed,” Art Cencel, Santa Ana Heights board president, said in a statement. “This merger is clearly the best long-term solution for ensuring a reliable water supply for the [Santa Ana Heights Water] customers at the best possible cost.”

A majority of Santa Ana Heights’ shareholders tendered their stock at $1,100 a share, formalizing the acquisition by the Irvine Ranch Water District, officials said. The stock, a total of 3,852 shares, was given to Santa Ana Heights residents when they bought their homes as a guarantee of water service.

Irvine Ranch officials said water rates will fall 10% by the end of the summer for Santa Ana Heights Water customers. Rates will not change for Irvine Ranch customers, who pay less now.

Seeking to block the merger, the Mesa Consolidated Water District in Costa Mesa filed a lawsuit alleging that, because Santa Ana Heights Water Co.’s bylaws prevent the sale of shares given to landowners in Santa Ana Heights, the Irvine Ranch purchase is illegal.

Coleen Scarminach, administration manager with Mesa Consolidated, said the company will proceed with the suit.

The county’s Local Agency Formation Commission, which rules on modifications to government agencies, still must approve the merger.