Government Watch : Dirty Water

Beware of big doings in small, out-of-the-way places. The criminal charges against two former officials of an obscure water district in Orange County serve as a reminder of what can happen when important public business is conducted largely out of sight.

A year ago, scarcely anybody had ever heard of the Santa Margarita Water District, a $28-million-a-year special district providing water and sewer service to the sprawling suburbs. Then The Times reported that Walter W. (Bill) Knitz, district general manager, and Michael P. Lord, assistant general manager, had accepted tens of thousands of dollars in gifts and lavish trips from local business people, many of whom the two officials recommended for hefty contracts, apparently in violation of state law. Knitz and Lord later retired.

This week the Orange County district attorney’s office weighed in after a yearlong investigation with charges that what the two did was out and out illegal. The counts centered on alleged failure to meet reporting requirements for the gifts and alleged actions taken on behalf of gift-givers in violation of conflict-of-interest laws. The misdemeanor counts carry fines or jail time or both.

The larger lesson lies in the potential for funny business at that most local level of government, the special district. There is a compelling need for public officials to keep special interests at arm’s length, whether they function in the glare that falls on City Hall, Sacramento and Washington or in dimly lit places like small water districts.