Irvine Ranch Water District
http://www.irwd.com/about-us/financial-information/consolidations.html
Over the last 10-plus years IRWD has consolidated with five water districts. The integrated services of IRWD allow for reduced overhead and administrative costs and lower rates and charges to customers of the consolidated district. When considering consolidation requests, the District looks for increased efficiencies through economies of scale and mutual benefits from combined expertise and resources.
Although consolidations differ depending upon the local agency, the basic consolidation process is generally as follows: the agency seeking consolidation issues a Request for Proposal (RFP) that provides a framework and service requirements for the specific area in question. If IRWD determines that it is both appropriate and fiscally prudent to enter into consolidation discussions, we will respond to the RFP. If selected, IRWD and the agency seeking consolidation will develop and agree to the terms and conditions of the consolidation agreement and an application will be filed with the Orange County Local Agency Formation Commission (LAFCO). LAFCO then evaluates and makes a decision on whether or not to accept the consolidation proposal.
Consolidation History
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2008 Orange Park Acres Mutual Water Company
The Orange Park Acres Mutual Water Company (OPAMWC) was incorporated on March 13, 1929 to provide water service to 640 acres in the rural, unincorporated community of Orange Park Acres. The newly formed mutual water company issued 722 shares of stock that were both appurtenant to the land and required to obtain water service. Shares were allocated based upon property size and voting rights were determined by the number of shares held. The water company was governed by a five member board elected by a plurality vote of shareholders at its annual meeting.
Over time, the Orange Park Acres community located just to the east of the City of Orange, developed into the premier equestrian destination in Orange County and is now considered to have one of the finest multi-purpose trail systems in California. The OPAMWC developed along with the community and by 2008 was providing water service to approximately 530 connections through 15 miles of water distribution pipelines. The water system also included a one million gallon reservoir, five small pump stations, and a groundwater well capable of producing 900 gallons per minute. Well supplies were augmented by imported water purchases as necessary.
In the early 1960’s the OPAMWC considered expanding its service area beyond its original boundaries but for a number of reasons expansion did not occur. Over the following years, ever-increasing water costs, more stringent regulatory requirements, and the need to replace much of the original 1929 infrastructure began to place an onerous burden on the relatively small customer base. In light of those increasing costs and in the absence of future expansion that would spread costs over a larger customer base, the OPAMWC Board determined in 2006 that it would be in the best interests of their customers to explore alternatives to meet future water service needs.
To evaluate potential merger options with larger water service providers, the OPAMWC Board circulated a Request for Information in August 2006 to several agencies. Based upon the responses received, the OPAMWC Board elected to pursue discussions with IRWD. In March 2007 IRWD began operating the OPAMWC system on a contract basis, and over the following twelve months, OPAMWC and IRWD successfully negotiated the terms and conditions that would define how the two agencies would be merged.
Annexation of OPAMWC into IRWD was approved by the Orange County Local Agency Formation Commission in December 2007 contingent upon subsequent shareholder approval. On April 10, 2008 the OPAMWC shareholders voted overwhelmingly to approve the merger with IRWD and the annexation became effective June 1, 2008.
The merger with IRWD allowed OPAMWC the means to secure a modern, reliable water delivery system to meet the future water service needs of the OPA community. Annexation to IRWD also led to a significant reduction in water rates, improved system operations, access to additional water supplies, increased reliability, improved emergency response capabilities, and a sound financial plan to replace the original 1929 infrastructure.
Orange Park Acres is a unique community and its residents have a rich history and a common purpose of working to improve the surroundings in which they live. Incorporating the Orange Park Acres community into the IRWD service area furthered this goal and the OPAMWC Board is to be commended for their foresight and commitment to the community they served.
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2006 Santiago County Water District
Established in 1962, the Santiago County Water District (SCWD) was located in northeast Orange County, east of the cities of Orange and Tustin. The District covered an area of 29,450 acres with land ranging from the foothills around Irvine Lake to mountainous canyons in the Cleveland National Forest.
For a number of years, the SCWD area was geographically remote from surrounding development and the majority of the District’s population was, and remained, concentrated in Silverado, Williams, and Modjeska Canyons. By 2006, SCWD served potable water to approximately 2,500 customers with 740 domestic water connections delivering up to 500 acre-feet of water annually. Urban growth and development in areas of Irvine, Trabuco Canyon, Robinson Ranch, and the City of Orange gradually extended towards the SCWD service area making it less remote and putting it into closer contact with adjacent water districts.
Like other water agencies in Orange County that originally served predominantly rural areas, SCWD’s operating costs user rates tended to be high due to both its remoteness and its relatively small customer base. SCWD’s Board of Directors, knowing that operating costs would almost certainly continue to increase in the future, decided to explore options whereby SCWD might consolidate with another water district and through that consolidation provide a more cost-efficient and reliable water service to its existing and future customers.
In 2005 the SCWD Board initiated a process to evaluate their future options as a district and a special subcommittee, the President’s Advisory Board, was formed to take up this issue. This subcommittee was made up of approximately forty SCWD customers. Over an approximate twelve month period that included numerous public meetings and discussions with other water districts adjacent to SCWD, the SCWD Board of Directors and the President’s Advisory Board rigorously evaluated all future water delivery options and, in early 2006, the alternatives available to SCWD were put to a vote of its customers. By an overwhelming margin, consolidation with IRWD was selected as the best option to meet future water service in SCWD.
In July 2006, the consolidation of IRWD and SCWD was complete. The consolidation reduced operating costs and allowed for a significant reduction in SCWD rates and charges. It also provided a more diverse and reliable water supply to the SCWD service area, greater operational flexibility and reliability, and enhanced emergency preparedness.
For over forty years, the SCWD provided reliable water service to a remote and bucolic area of Orange County. The decision by its Board of Directors to take the steps necessary to serve the best interests of their customers in a changing world was no easy matter and they are to be commended for their foresight, vision, and planning to achieve that goal.
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2001 Los Alisos Water District
Under the provisions of California Water District law, the Los Alisos Water District was formed by ranchers and land owners in 1960 over most of the Spanish land grant area of Rancho Canada de Los Alisos. The new district was formed primarily to obtain imported water from the Metropolitan Water District of Southern California through the recently formed Orange County Municipal Water District.
In 1961, LAWD, in collaboration with the El Toro Water District, created the Santiago Aqueduct Commission, a joint powers agency that financed and built the V.P. Baker Pipeline. The new pipeline, completed in 1962, extended from the Santiago Lateral of MWD southwest approximately 15 miles. The population within LAWD at this time was less than 300. In 1964, LAWD began construction of sewer collection and treatment facilities.
By December 2000, the population had grown to approximately 43,000 and was served by a domestic water system that included 144 miles of pipe and eight reservoirs with a combined storage of 60 million gallons. Sewer service was provided by a 106-mile sewer collection system, one sewer lift station, and a secondary sewage treatment facility with a capacity of 7.5 mgd. Tertiary treatment facilities of 5.5 mgd provided reclaimed water through 21 miles of pipe and five reservoirs with 15 million gallons of storage capacity.
In early 2000, LAWD entered into discussions with IRWD regarding potential consolidation. The primary goal was to improve water reliability in the LAWD service area, which at the time received two thirds of its water supply from Metropolitan. Upon approval by the Local Agency Formation Commission, the two districts were reorganized and consolidated effective January 1, 2001.
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2000 Carpenter Irrigation District
The formative roots of the Carpenter Irrigation District were established during the 1870’s in the El Modena area and the right to use of the water from Santiago Creek. Carpenter Irrigation District later became the Carpenter Water Company.
In 1927, the Carpenter Irrigation District was formed as a public agency, principally to issue bonds to pay for a portion of the new Santiago Dam, which was constructed as a joint project by CID, Serrano Irrigation District and the Irvine Company. Santiago Dam and Reservoir later became known as Irvine Lake.
During the 1960’s, agricultural land within CID declined to less than 200 acres. Realizing their diminishing role as a water provider, the CID Board of Directors in 1970 entered into agreement with the Irvine Company to ensure that the obligations to remaining irrigation users would continue to be met. In exchange, the Irvine Company received CID’s share of capacity in Irvine Lake and their share of recreational rights.
In 1974, IRWD became the successor to the Irvine Company and its 1970 agreement with CID. In 1988 CID and IRWD adopted an amendment to the 1970 Agreement with CID. In 1998, CID and IRWD adopted an amendment to the 1970 Agreement that provided for the dissolution of CID and the detachment of its few remaining customers with annexation of these areas to IRWD. The two agencies applied to the Orange County Local Area Formation Commission for approval of the proposed reorganization and it became effective December 31, 1998.
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1997 Santa Ana Heights Mutual Water Company
The Santa Ana Heights Water company was incorporated on June 28, 1922 by developer Lon S. McCoy, D. W. Edwards, and E.P. Truitt to provide water service and fire flow protection at cost to shareholders in the new residential subdivisions planned for the Santa Ana Heights tract. The Santa Ana Heights Water Company was the first major municipal water purveyor in the Newport Beach/Costa Mesa area. Its incorporation facilitated the development and prosperous growth of the area long before other neighboring public agencies were organized to provide municipal water service.
For 75 years the Santa Ana Heights Water Company provided efficient, low-cost, and reliable service. However, in 1997, due to rising costs of imported water and lack of potable ground water supplies, the shareholders of the Santa Ana Heights Water Company elected to merge with IRWD. In 1997 the Santa Ana Heights Water Company was successfully merged with IRWD, which, at the time, provided water service to approximately 150,000 residents including 10,000 residents who resided in the former area of the Santa Ana Heights Water Company.




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