Newport Coast: We want $25 million

Noaki Schwartz

NEWPORT BEACH -- Newport Coast residents say unless the city spends all

of the $25 million it would receive from the Irvine Ranch Water District

on their community, they will oppose the city’s annexation plans.

“The city doesn’t get the money unless we agree to annexation,” said

Newport Coast resident spokesman Jim McGee.

McGee said the city had previously agreed to use all of the money to help

pay for the community’s bond and to repair its ailing infrastructure. He

was alarmed, however, when he heard that city officials might only use a

portion of the money.

Pending the city’s largest annexation effort, Newport would get a total

of $25 million over a six-year period if the district is allowed to

continue to provide water to the community. Among other things, city

officials thought this would appeal to Newport Coast residents because

the district’s water rates are three times less than the city’s fees.

City Manager Homer Bludau, however, was quick to point out that no

concrete decision had been made regarding how much of the money would be

spent on the community itself. He added that his staff is still working

with residents to iron out a final agreement.

“There’s a lot more than just the amount of money,” he said.Still, McGee

wants clarity -- and with good reason. While negotiations with the

community have been optimistic thus far, talks fell apart two years ago

because of lack of communication, he said.

The city began the annexation of Newport Coast, Santa Ana Heights and Bay

Knolls last fall. They filed a formal application with the Local Agency

Formation Commission, the state-created body that governs incorporations

and annexations at that time.

Once negotiations are finalized, the city will file a completed

application to the commission in February and should have a hearing set

by the spring.

“We have always supported efforts by the city to [get an agreement] with

the Irvine Ranch Water District,” McGee said. “Residents are supportive

of reaching an agreement so long as the money is used to reduce [the

costs of] infrastructure and the bond.”