O.C.’s Kymla Quits MWD Board : Utilities: 20-year member, indicted on tax-evasion charges, cites only ‘personal problems’ in resignation letter.

A powerful Orange County water district official who was indicted on charges of federal income tax evasion last summer has resigned as a director of the Metropolitan Water District of Southern California, the second director from Orange County to quit the board in two months.

Carl Kymla, 58, of Costa Mesa, a 20-year member of the MWD board and longtime chairman of its special budget committee, submitted a letter of resignation Oct. 6 to the Municipal Water District of Orange County, the agency that had appointed him to the board of the Los Angeles-based water agency.

Kymla’s resignation letter, dated Sept. 29, does not refer to his indictment. It cites “personal problems” as the reason for his departure, according to Keith Coolidge, a spokesman for the Municipal Water District.

As chairman of the special budget committee since its inception in 1976, Kymla led the directors who had the final word on MWD’s $800-million annual budget.

“That is no small task,” said Jay Malinowski, MWD spokesman. “Carl did more than any director to shape the district’s budget and move the district in the direction of being efficient. He was tough but fair.”

Kymla, a former Newport Beach City Council member and deputy county supervisor, runs a private consulting business, Municipal Services Consultant, Inc., in Newport Beach. His company offers advice on municipal financing, annexation strategies and land-development deals.

Federal authorities charge that Kymla paid less than half the $158,282 owed in taxes in 1986 and 1987.

If convicted of both counts of tax evasion for which he was indicted, Kymla could face a maximum penalty of 10 years in prison and a $500,000 fine, according to a federal prosecutor.

In 1986, Kymla claimed that he and his wife at the time earned $31,996 and owed $5,096 in taxes; the government says the couple earned $172,743 and owed $66,127. In 1987, Kymla and his ex-wife reported income of $191,805 on which they owed $63,785 in taxes; the government says they earned $268,743 and owed $92,155 in taxes.

Kymla has vehemently denied all the charges. His ex-wife is not named in the indictment. He could not be reached for comment on his resignation.

In 1978, Kymla was one of five Moulton Niguel Water District officials indicted on felony charges of misappropriating public property. The charges against Kymla, who was general manager of the district, included the allegation that he used district equipment and employees to perform chores around his house.

In an apparent deal with prosecutors, the charges were dropped in 1979, and Kymla resigned his water district job the next day.

Coolidge praised Kymla’s work for MWD board and credits him with helping keep the rates for imported water down.

Susan Trager, an Irvine-based water resources lawyer, said Kymla will be missed greatly on the MWD board. “He was one of the brightest MWD directors. He really understands money and financing, which is a skill few directors bring to that board,” Trager said.

Last month, John Killefer of Newport Beach quit the 51-member MWD board. Killefer, former chairman of the MWD site-selection committee, was appointed to the board by the Dana Point-based Coastal Municipal Water District.