Costa Mesa Sanitary District to take Mesa Water to court over merger measure
Less than a month after deriding an advisory ballot question proposed by the Mesa Water District as premature, inaccurate and misleading, board members of the Costa Mesa Sanitary District decided Tuesday to take legal action against the measure.
Sanitary district board members voted 4-0, with board Vice President Art Perry absent, to authorize staff to file a legal challenge in Orange County Superior Court against the nonbinding measure, which will ask voters Nov. 8 to indicate whether they support the idea of the two agencies pursuing a merger.
“We think it’s the correct action,” sanitary district board President Mike Scheafer said after Tuesday’s board meeting — the first held in the district’s new headquarters at 290 Paularino Ave.
The board’s decision is the latest salvo in what has become an increasingly heated disagreement stemming from a study Mesa Water commissioned to examine whether it would make financial and operational sense to consolidate the two districts.
The preliminary study, prepared by consultant Arcadis U.S. Inc., said the financial benefits of combining the districts could be significant — about $15.6 million in one-time savings and an additional $2.7 million annually.
Those savings could result in a $650 rebate for each customer and up to a 28% reduction in wastewater rates, according to the study.
Mesa Water’s board voted in late July to place the advisory measure on November’s ballot, saying ratepayers should get a chance to weigh in given the magnitude of the possible savings.
“Mesa Water District believes that the study results, and the possible savings it cites, are true and valid,” district General Manager Paul Shoenberger said Tuesday.
Sanitary district officials declined to officially participate in the effort — raising concerns with the level of input they had in shaping the study — and have blasted the document’s savings calculations as inaccurate and misleading.
The ballot measure, designated Measure TT, is likewise flawed, they say, because it cites the possible savings identified in the study in asking voters whether the merger should be pursued.
“The board believes the language on the ballot measure is misleading and not impartial,” sanitary district General Manager Scott Carroll said Tuesday. “The board believes the ballot [language] suggests which way to vote on the measure by indicating [that] savings, rate rebates and rate reductions will occur by consolidating the two agencies. You cannot try to sway votes by placing false statements on a ballot measure.”
The estimated cost of pursuing legal action is $4,000 to $8,000, according to Carroll.
Scheafer previously said he thinks the “overwhelming response in the community” is that Mesa Water’s advisory measure is a “political stunt.”
Measure TT isn’t binding, so even if a majority of voters were to approve it, consolidation wouldn’t be a given.
“To me, the whole election is silly,” Newport Beach resident Jim Mosher said at Tuesday’s sanitary district meeting. “It’s pointless because however it turns out, it’s not binding on anyone.”
Mesa Water officials have said the results of the vote will provide a clear indication of how much support there is for the concept of merging the districts.
The water district provides service to about 110,000 people in Costa Mesa, parts of Newport Beach and sections of unincorporated Orange County, including John Wayne Airport.
The sanitary district provides sewer and curbside trash collection services to about 116,700 ratepayers in an area that is similar, though not identical, to Mesa Water’s.
People who are ratepayers in either district will be able to vote on the ballot measure.
Mesa Water board members are expected to vote next month to boost the value of the district’s contract with Arcadis by as much as $50,000 — up from $29,960 — for “as-needed” services.
Those could include legal support regarding the study’s accuracy and work on follow-up analysis, according to Mesa Water External Affairs Manager Stacy Taylor.
Placing the advisory measure on the ballot is expected to cost Mesa Water $66,628. District board members have approved up to $88,000 more for educational outreach efforts between now and Election Day.
The Costa Mesa Sanitary District has retained Roger Faubel Public Affairs Inc. for community outreach services related to the ballot measure. The cost of the retainer is $7,500 a month, according to Carroll.
The Arcadis study can be viewed at MesaWater.org/SDSE. To see the sanitary district’s response, visit cmsdca.gov.
Twitter: @LukeMMoney
