![]() ![]() The process moves to the Orange County Local Agency Formation Commission, whose staff and board will review the agreement over the next few months. “I see it as a win-win,” he said, “because we get better water service and SMWD gets more customers.” John Perry, a former councilman who sued the city over tiered water rates in 2012, praised the annexation agreement saying “$25 million would go a long way of fixing sewer lines and improving water lines and the supply of recycled water.” After getting interest from three, the council entered into an exclusive negotiation agreement with the Santa Margarita Water District. Last year, the City Council courted area water districts to take over operations and the city’s infrastructure. The city for years has tried to get out of the water business, given its system’s deferred maintenance. Per the agreement, the district will also invest $25 million over the next 10 years to improve the water and sewer infrastructure in San Juan Capistrano, Ken Al-Imam, the city’s chief financial officer, said. Residents will still be able to pay their water and sewer bills at City Hall for at least two years. The increases should be “significantly less than what would be expected if the city had retained the utility systems,” city officials said. Residents should see a “moderate” initial cut in their monthly bills – $4 for an average customer with a three-quarters inch meter – followed likely by annual increases of 2% to 6%, district staffers said. “It’s surreal to finally get to the point of it happening,” Councilman Derek Reeve said at the council meeting. 21, approved the agreement, following a few days behind the water district board’s approval. San Juan Capistrano City Council members on Tuesday, Jan. San Juan Capistrano residents should have more stable billing when the Santa Margarita Water District takes over the city’s water and sewer system, likely by the summer, now that an annexation agreement has been reached. ![]()
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