LAKEPORT, Calif. – On Tuesday the Board of Supervisors put off making a decision on a proposed agreement to repay the county for removing a crane that went into Clear Lake nearly six years ago.
The crane in question belonged to Martin Scheel, who at the time was working as a marine contractor on Clear Lake.
In November 2010, Scheel was using the crane to build a boat lift near Clearlake Park when it slipped from its barge during a storm and went into the lake, where it was reported to be in about 50 feet of water. A barge and a push boat also sank but were moved a month later, as Lake County News has reported.
In 2012 Scheel was elected to the Lakeport City Council and is now running to succeed Anthony Farrington as the District 4 representative on the Board of Supervisors.
The matter has become an election year issue, with Farrington using it to attack Scheel after Scheel announced his candidacy late last year. Farrington has provided support for Tina Scott with a monetary campaign donation and by placing signage supporting Scott on his business but says he has not endorsed. Based on preliminary election results Scott will be in a runoff with Scheel this fall for the seat and who was at the meeting.
Farrington said that Scheel should already have paid the county back for the abatement, while Scheel has said he has attempted to get a full accounting from the county and a bill, but until now hasn't received one.
In January 2011, the Board of Supervisors voted to have the crane removed. During that meeting, Scheel told the supervisors that he did not have the means to recover the crane on his own.
Public Works Director Scott De Leon's memo to the board for the Tuesday meeting reported that the county contracted with Meridian Construction in 2011 to remove the crane.
The total cost of the abatement was $59,945.07, with De Leon reporting that, once retrieved, the crane was sold to a salvage company. The county applied those proceeds – $4,039 – to the account, for a final abatement cost of $55,906.07.
De Leon presented to the board a proposed agreement in which Scheel will make equal biannual installments of $2,795.30 over the coming 10 years. The full balance is due immediately if he misses the payments, which are due on or before April 10 and Dec. 10 of each year.
“This is being brought to you as a draft for your consideration and discussion,” De Leon told the board Tuesday morning.
Scheel was present but did not speak during the discussion.
Supervisor Jim Steele questioned the county's policy of making loans to people, noting that the repayment plan did not include interest or collateral.
“I'm not aware of any policy,” said De Leon, who pointed out that county service areas that offer road maintenance services make interest-free loans.
“This seems a little strange, that we're going to have an unsecured loan, no collateral,” said Steele.
De Leon replied, “There isn't property to apply the lien to,” referring to his memo that explained that the crane was sold for scrap.
Farrington said the board doesn't generally police the handling of abatement agreements, and questioned County Counsel Anita Grant about whether it would require a court judgment to place a lien on real property and if a nexus could be established to affix such a lien to property not related to an abatement.
Grant said that in abatements, the method of collection is determined by the board at a cost recovery hearing, where the board can then hear objections.
Farrington added that he hopes the board will look at permit requirements or bonding to work on the lake, which Board Chair Rob Brown said was something he had raised with the matter five years ago.
Finley resident Phil Murphy, who also had run in the District 4 race, repeatedly questioned the board about why the matter hadn't been resolved previously.
Brown told him, “I don't have an answer.” He added, “It ends here,” and the board was to blame.
Murphy questioned why the board wasn't asking about what went wrong. “Don't you have to have an understanding of what failed in order to correct that problem?”
“We're human,” said Brown, adding that it slipped through the cracks.
Supervisor Jeff Smith said he thought it was taken care of five years ago. “It was the only abatement like that we've ever seen.”
Smith added, “We screwed up, what else do you want to hear?”
Murphy asked if, in past abatements, someone had been offered a payment plan. Smith said yes, that he had asked the same thing that morning of staff. Such plans didn't have interest.
Brown added that anyone who owes the county money can repay it in installments.
Smith said he wanted to bring back for review county policy on such agreements and look at collecting interest.
Farrington disagreed with Brown and Smith that the county was to blame, saying Scheel was fully aware of the money he owed the county.
“I'm trying not to bring the politics into this,” Farrington said, adding that he hoped the matter would be put right.
He said there should be interest and collateral, and Scheel should be treated like anyone else, without concessions.
Another community member, Mike Dunlap, suggested they should ask Scheel to go out and try to get a loan in order to pay the amount off in full. If he can't, then the matter should be brought back for negotiation, Dunlap said.
The board agreed to give Scheel 30 days to seek out another avenue of financing, with Brown scheduling the matter to be brought back on July 12.
Scheel told Lake County News later on Tuesday that he had hoped the matter would have been resolved that day.
He said he has previously attempted to get a loan to cover the amount but has been unsuccessful in doing so.
Email Elizabeth Larson at This email address is being protected from spambots. You need JavaScript enabled to view it. . Follow her on Twitter, @ERLarson, or Lake County News, @LakeCoNews.
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