Consolidations

The merger between Orange Park Acres Mutual Water Company and IRWD was overwhelmingly approved by the OPAMWC shareholders on April 10, 2008, and became effective June 1, 2008. The OPAMWC Board of Directors successfully negotiated an acquisition and annexation agreement with IRWD that lowered the cost of water service and improved system reliability to customers currently serviced by the OPAMWC.

Upon consolidation with IRWD, former OPAMWC customers were fully integrated into IRWD and now receive services and operational benefits enjoyed by all customers throughout the IRWD service area. These benefits included an immediate 20 percent reduction in rates, access to additional water supply reliability and redundancy, rapid and substantial emergency response capabilities, extensive equipment, diverse materials and preventative maintenance programs, and enhanced customer service capabilities.

The OPAMWC service area has already seen a number of significant water improvements to its water infrastructure which will ultimately bring the system up to contemporary standards, including replacement of the substandard 1929 steel pipe utilized throughout the system. The system improvements were financed by IRWD and OPA rate area customers paid for the improvements through a “water rate differential” which  was the difference between the water rate charged to the former customers of OPAMWC (with the 20 percent rate decrease) and the water rates for IRWD customers.

As of July 1, 2015, the improvements where paid off, and water rates charged to the OPA rate area customers were transitioned to match the rates charged to other IRWD customers.

OPAMWC Stock Purchase:

As part of consolidation agreement, IRWD agreed to purchase the outstanding shares in the OPAMWC. If you still own stock in the Orange Park Acres Mutual Water Company, you can redeem your stock as stipulated in the consolidation agreement.  For more information please email customerservice@IRWD.com. Telephone: 949-453-5300.

On July 6, 2006 the former Santiago County Water District consolidated with IRWD. At that time, an acquisition balance was established which set a schedule for the former Santiago service area to be transitioned into financial and operational parity with the remaining IRWD service area.

Upon consolidation, IRWD immediately reduced water rates by 20% below the Santiago County Water District water rates, but the reduced rates were still higher than those paid by other customers in the IRWD service area and the difference in rates was applied to pay down the acquisition balance.  The transition of the Santiago Service area to the IRWD service area budget based rate structure took place on July 1, 2010, almost two years ahead of schedule.

SANTIAGO COUNTY WATER DISTRICT HISTORY

Established in 1962, the Santiago County Water District 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 40 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.

In September 2000 the Orange County Local Area Formation Commission approved the consolidation between IRWD and the Los Alisos Water District. The two districts were reorganized as IRWD when the consolidation became effective on January 1, 2001. Areas in South Orange County, including the IRWD Los Alisos rate area, rely predominantly on imported water to the region to meet water demand. As much as 94 percent of the potable water supplied in the region is imported water from the Metropolitan Water District of Southern California. Only about five percent of the potable water for the Los Alisos rate area comes from local water wells.

Since the consolidation, the rate structure for the Los Alisos rate area has been similar to the IRWD rate structure, but takes into account that this part of the IRWD service area does not have a local groundwater basin and no source of local water. Los Alisos is almost wholly dependent upon more expensive imported water from MWD.

As of July 1, 2017, water rates charged to the customers in the Los Alisos rate area customers were transitioned to match the rates charged to other IRWD customers. This occurred due to a sale of the property surrounding the former Los Alisos Water District headquarters in Lake Forest expected to be completed in late 2017. The development agreement for the property was finalized in July 2008 and IRWD has worked with the City of Lake Forest and project consultants to entitle the property. Revenue realized from the sale helped to equalize the higher cost of imported water and allow the Los Alisos Service Area to have rate parity with IRWD.

LOS ALISOS WATER DISTRICT HISTORY

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.

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 1960s, 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.

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.