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City resolves Ramey deposit dispute
By Chris McCaa Staff Writer
Clayton City Council has returned a $10,000 deposit to the family of Mayor Tom Ramey Sr., thus ending a 16-month-old water dispute.
The city had been withholding the money even after negotiations between the mayor's lawyer, Andrew Lampros, and City Attorney Davis Bauman stalled in February.
Council passed a resolution that month asking the district attorney to investigate allegations of theft of services at Laurel Falls and Stave Mill apartments, both of which are owned by the mayor's family. The special prosecutor determined no evidence existed that could prove that a theft occurred.
Allegations of water theft surfaced in July 2007 after city workers found an unread meter at Stave Mill.
Council also addressed infrastructure and other issues during the 3 1/2-hour meeting Nov. 12.
After a closed session, Bauman read a resolution from Councilman Pat Marcellino Jr. concerning the deposit.
"The council has determined after much deliberation that the cost to the city in further efforts to collect the Stave Mill and Laurel Falls water bills will cost our tax payers more money than any potential gains from the litigation," the resolution says. "We accept the conclusion of the special prosecutor, that while illegal hook-ups have occurred in city water and sewer systems, we also realize the effort to prove the case would be cost prohibitive to the city."
The resolution also stated the owners of the apartments had shown "an unwillingness to continue to negotiate or mediate any resolution. Therefore the City is faced with the choice of ending the issue and saving the City thousands of dollars in expense or continuing a fight against owners who apparently will not seek any resolution of this dispute without litigation."
Lampros noted that his clients made a $7,600 counteroffer to settle the city's claim in January after council had demanded $32,000.
"Council apparently finally came to the realization that the facts and the law were against them," he said. "Council's commentary is self-contradicting and disingenuous, at a minimum. You know the old saying, actions speak louder than words."
Ramey and his family claimed the city owed them $29,000 for damage caused by a city water leak to a building at Stave Mill.
Councilwoman Debbie Chisholm voted against the resolution.
After a closed session at an Oct. 14 meeting, council unanimously passed a motion to use a $10,000 deposit from the Rameys to pay for "unpaid past due water bills."
The deposit was given to the city by Ramey in January as a good-faith gesture during the ongoing negotiations.
Lampros wrote a letter to Bauman requesting the city return the money to his clients "promptly."
On Nov. 12, council also passed a motion to override an executive order issued by Ramey Nov. 4. The order had rescinded a moratorium on sewer hook-ups outside city limits. Ramey said he was attempting to increase city revenue.
Councilman Pat Marcellino Jr. said the moratorium served an important purpose and needed to be maintained for the time being.
"The sewer moratorium was imposed because of inflow and infiltration in the sewer lines," Marcellino said. "Until we get a handle on that, the potential for overflowing the (wastewater) treatment plant increases."
Council then voted to override Ramey's veto concerning the allocation of $24,000 of Special Purpose Local Option Sales Tax funds. Council last month gave public works director Moody Barrick authority to spend up to $24,000 of SPLOST money on leak detection devices.
Ramey, who issued the written veto while on a three-week vacation, claimed the allocation of SPLOST money to purchase the equipment "may violate the provisions of SPLOST."
Marcellino said he consulted Rabun County Administrator Jim Bleckley on the issue.
"He said you can purchase equipment that is related to the requested use, that is water and sewer (improvements)," Marcellino said.
Ramey said he had only one concern.
"I want to make sure that if we buy it, we are going to use it," Ramey said.
In other business, council:
Unanimously accepted the second reading of proposed amendments to the City Charter. On Nov. 11, a public reading of the amendments was held. The proposed amendments will be sent to the Georgia General Assembly in 2009 for approval.
Unanimously passed a motion for the city to agree to an analysis by Joe Tanner and Associates to develop parity between the city and the county on the Clayton-Rabun Water and Sewer Authority. Currently, the city appoints three members to the county's two.
Unanimously passed a motion to maintain a 65-cent surcharge on the monthly bills of city water customers until January 2009, when it will be reassessed. The surcharge was enacted this summer in an effort to offset the cost of gasoline used by city vehicles.
The city had been withholding the money even after negotiations between the mayor's lawyer, Andrew Lampros, and City Attorney Davis Bauman stalled in February.
Council passed a resolution that month asking the district attorney to investigate allegations of theft of services at Laurel Falls and Stave Mill apartments, both of which are owned by the mayor's family. The special prosecutor determined no evidence existed that could prove that a theft occurred.
Allegations of water theft surfaced in July 2007 after city workers found an unread meter at Stave Mill.
Council also addressed infrastructure and other issues during the 3 1/2-hour meeting Nov. 12.
After a closed session, Bauman read a resolution from Councilman Pat Marcellino Jr. concerning the deposit.
"The council has determined after much deliberation that the cost to the city in further efforts to collect the Stave Mill and Laurel Falls water bills will cost our tax payers more money than any potential gains from the litigation," the resolution says. "We accept the conclusion of the special prosecutor, that while illegal hook-ups have occurred in city water and sewer systems, we also realize the effort to prove the case would be cost prohibitive to the city."
The resolution also stated the owners of the apartments had shown "an unwillingness to continue to negotiate or mediate any resolution. Therefore the City is faced with the choice of ending the issue and saving the City thousands of dollars in expense or continuing a fight against owners who apparently will not seek any resolution of this dispute without litigation."
Lampros noted that his clients made a $7,600 counteroffer to settle the city's claim in January after council had demanded $32,000.
"Council apparently finally came to the realization that the facts and the law were against them," he said. "Council's commentary is self-contradicting and disingenuous, at a minimum. You know the old saying, actions speak louder than words."
Ramey and his family claimed the city owed them $29,000 for damage caused by a city water leak to a building at Stave Mill.
Councilwoman Debbie Chisholm voted against the resolution.
After a closed session at an Oct. 14 meeting, council unanimously passed a motion to use a $10,000 deposit from the Rameys to pay for "unpaid past due water bills."
The deposit was given to the city by Ramey in January as a good-faith gesture during the ongoing negotiations.
Lampros wrote a letter to Bauman requesting the city return the money to his clients "promptly."
On Nov. 12, council also passed a motion to override an executive order issued by Ramey Nov. 4. The order had rescinded a moratorium on sewer hook-ups outside city limits. Ramey said he was attempting to increase city revenue.
Councilman Pat Marcellino Jr. said the moratorium served an important purpose and needed to be maintained for the time being.
"The sewer moratorium was imposed because of inflow and infiltration in the sewer lines," Marcellino said. "Until we get a handle on that, the potential for overflowing the (wastewater) treatment plant increases."
Council then voted to override Ramey's veto concerning the allocation of $24,000 of Special Purpose Local Option Sales Tax funds. Council last month gave public works director Moody Barrick authority to spend up to $24,000 of SPLOST money on leak detection devices.
Ramey, who issued the written veto while on a three-week vacation, claimed the allocation of SPLOST money to purchase the equipment "may violate the provisions of SPLOST."
Marcellino said he consulted Rabun County Administrator Jim Bleckley on the issue.
"He said you can purchase equipment that is related to the requested use, that is water and sewer (improvements)," Marcellino said.
Ramey said he had only one concern.
"I want to make sure that if we buy it, we are going to use it," Ramey said.
In other business, council:
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