CLEARLAKE ? Clearlake City Council voted to not authorize a $24,000 payment to Highlands Water Company on Thursday. The request for payment was based on alleged verbal agreement between the water company”s former manager and former City Administrator David Lane.
“I don”t know how we can write a check because somebody sends us a letter saying you owe us some money,” Councilmember Curt Giambruno said.
According to a letter received by the council from Highlands Water, in May 2001 the company allegedly installed a two inch meter set and water service to accommodate the city in opening the Clearlake Senior/Community Center on Bowers Road. The letter states that the project was over budget and as a courtesy the company postponed charges of the meter set at the city”s request until such time the city could raise the money to remit payment.
“The general manager of Highlands Water Company, no longer an employee, and Dave Lane, previous City Administrator of the City of Clearlake, made the agreement verbally as was the way the relationship worked during that time,” the letter, signed by Highland Water Company Board of Directors President John Eckhardt states. “Mr. Jim Hale, superintendent of public works at that time can possibly attest to that understanding.”
City Administrator Dale Neiman said that he requested documentation from the company regarding the agreement; however, documentation has not been produced, neither on the city”s side nor the water company”s.
“A purchase order was required to be processed and a copy given to Highlands when they submitted their request. At a minimum, the city and Highlands should have entered into an agreement. The agreement could have been a letter indicating the terms,” Neiman stated. “If I authorized the purchase without the proper documentation the city could take action to terminate me for cause and to recover the $24,000 from me personally. That is why I have not authorized the payment.”
Although Councilmember Roy Simons agreed that payment should not be authorized at this time he suggested a round table discussion with all parties involved in the interest of maintaining trust between the entities. “I believe they have some money coming but I also believe it”s a mistake to make this kind of agreement without documentation,” Simons said.
Mayor Chuck Leonard agreed. “If this was done as presented it is erroneous and bad. I”m in full agreement there should have been a written agreement,” he said.
“I don”t see how we can spend public funds without just cause,” Councilmember Joyce Overton said.
Mayor Leonard said that he would be open to reconsidering the request should proper documentation be produced.
No representatives from the water company were present for discussion of the item. The motion to not authorize payment passed 4-0. Vice Mayor Judy Thein was absent from the meeting.
Contact Denise Rockenstein at drockenstein@clearlakeobserver.com or call her directly at 994-6444, ext. 11.
