East Texas

By ADAM RUSSELL
Staff Writer

WHITEHOUSE -- The city of Whitehouse paid a landowner a $150,000 settlement for 2.14 acres of land -- far more than the appraised value -- after drilling a water well without a contract, the Tyler Paper has learned.

Whitehouse paid Donald Marksbury $60,000 on June 11 and the remaining $90,000 is to be paid over a five-year period, if not sooner, City Financial Director Jed Dillingham confirmed.

Smith County Appraisal District records value Marksbury's land at about $2,700 per acre.

After refusing water contracts from the city of Tyler, the city began expanding its well system as its water source. Some of the wells planned by the city have yet to come on line and outdoor watering restrictions have been implemented.

The restrictions have raised the ire of some residents who have complained that the water well projects were mishandled.

Marksbury said City Manager Ronny Fite approached him regarding a desire to drill a well on his property on County Road 2173. Fite said the city had discovered information that revealed the property was a promising well site.

After Marksbury gave a verbal consent, the city began drilling without waiting for written contract to be finalized.

Marksbury said he waited for negotiations.

"I think they got the cart before the horse on that one," he said. "If I were them I would have taken care of the paperwork first but I didn't mind and never heard from them again."

Fite maintains that there was a "gentlemen's agreement" and that it was understood that the city would pay a fair market price. The city council approved the $150,000 settlement in a special meeting on June 3. In absence of Mayor Danny Hogden, mayor pro-tem Dale Moran presided. Council members Gene Champion, Tony Hill and Charles Parker passed the measure. Mike Jeter was not present.

The land was purchased at a higher amount than the city anticipated or wanted to pay, Fite acknowledged.

"It just comes down to we were trying to do the best thing possible to make sure the city of Whitehouse has water and we ran into something like this," he said.

Mayor Hogden said he was disappointed the city did not have a contract with Marksbury and that "everyone assumed that the paperwork had started." He said he regrets that assumption.

Moran defended the well projects, calling them "Grade A." He said the matter has been settled and therefore closed.

Moran said the wells are an investment that will pay for themselves and have come in under budget. Dillingham said the city spent $5,514,052 while appropriating $5,831,500 for five wells, including well No. 9.

Though the matter could have been handled differently, Moran said, his opinion is that the city did the best job possible.

"I am not saying there were not mistakes, that happened," he said. "We all make mistakes and when I do something I ask myself 'Did I stay within budget and did I accomplish my goals?' It was a great project."

Whitehouse began expansion on its well water production in the hopes to make the city self-sufficient. Whitehouse previously had purchased water from the city of Tyler. Last year Whitehouse chose not to renew the contract.

City staff and the council agreed that a contract with Tyler would interfere with a long-term surface water supply project with Lake Striker.

On July 22 the city issued an even-odd outside watering restriction because of usage spikes. A day later the city restricted all outside watering due to low recovery rates in the city's water storage tanks. Fite said that residents watering lawns could prolong low water storage levels and the city acted preventatively.