Regan is now the district’s operations director and approved some of Wal-Con’s claims for higher payment.Ĭontacted by The Times, the water district’s finance director, James W. Regan, while a final claim for $1.39 million was being processed. Similarly, all concerned say it was merely a coincidence that Wal-Con hired the son of Knitz’s special assistant at the time, Robert J. The assistant project manager said there was nothing improper about his daughter being hired. But MSE’s recommendations were overruled by higher-ups at the district, one of the firm’s employees testified during the trial.Īlthough everyone denies that it had any impact on the process, the Wal-Con employee who prepared the change order requests was the daughter of the assistant project manager at MacDonald-Stephens Engineers, who passed first judgment on them. Many of the requested change orders were rejected by MacDonald-Stephens Engineers, the outside construction management firm paid $2 million to oversee the pipeline construction project. Moreover, Wal-Con, too, failed to complete the job on schedule, finishing 5 1/2 months late and submitting a string of “change order” requests that drove up the project’s cost by $3.6 million. He disputed the contention that the district was overcharged by $1 million.ĭuring the legal battle, Hood Construction’s attorney uncovered evidence that Wal-Con had double-billed, even triple- and quadruple-billed the district for some labor costs, and in one instance submitted a labor cost claim for an employee who was no longer on the firm’s payroll.
Pistone, who represented the water district in its unsuccessful suit to recover additional costs associated with bringing in a new contractor, said that there was nothing improper about the change in contractors and that all overcharges were inadvertent and eventually recovered. (Bill) Knitz, whose acceptance of gifts from contractors and lavish expense accounts were defended with statements that praised him for being a highly efficient manager, ultimately resulted in $3.6 million in cost overruns-including the overcharges-and a $2.4-million judgment the district lost in a court fight with the first contractor. During the winter months, more wastewater is generated than recycled water is needed which results in the District discharging the excess to the ocean.The general manager of the Santa Margarita Water District terminated a multimillion-dollar construction contract that had been awarded through competitive bidding and recommended it be given to a rival firm later shown to have overcharged the district more than $1 million. These plants are not only capable of treating the wastewater to the secondary treatment necessary to discharge to the ocean but can apply tertiary treatment which allows the water to be utilized in the District's recycled water system. This has been achieved by innovative urban return projects as well as operating three wastewater reclamation plants. The District has one of the largest recycled water programs in Orange County. To provide additional security against long-term service interruption, the District is working with regional partners to develop regional water storage solutions.
However, the District typically brings in 10 billion gallons of drinking water per year.
Santa Margarita Water District has a storage capacity of almost 430 million gallons of drinking water which represents one of the largest storage capacities in Orange County. In order to provide more reliability, SMWD is working on an alternative water supply by 2030. The District is almost entirely reliant on imported water from the Metropolitan Water District of Southern California. The District's mission statement strives to ".provide our customers with quality water and wastewater service – maximizing human, environmental, and financial resources – to help guide South Orange County’s water and wastewater needs into the next century."Īs part of this goal, the District is currently focused on three strategic goals by 2030: 1. Santa Margarita Water District provides high-quality drinking water, recycled water, and wastewater services in southern Orange County.
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