JAMES CITY — Highland Township may not have to pay back more than $96,000 in liquid fuels money to the Pennsylvania Department of Transportation after all, according to Supervisor chairman Jim Wolfe.

Wolfe said after a meeting with Bureau of Municipal Services’ financial consultant Mary Ammann, the township may not be liable to pay back $96,614.75 used by the township to pay the salary of former township roadmaster Charlie Vaughn.

The township paid Vaughn $39,949.50 in 2012; $40,885 in 2013; and $15,780.25 in 2014. He retired as roadmaster in April of 2014. Vaughn also stepped down as supervisor in July of 2013.

An audit report on Highland Township from the Pennsylvania Department of the Auditor General in August ruled the township had inadequate internal control over employee timesheets.

Supervisor Joe Milstead did not think it was fair for Vaughn to be singled out since he was not the only township employee to be paid out of the liquid fuels fund.

Township secretary-treasurer Christy Reigel said the issue was Vaughn not being paid legally by the supervisors. Reigel’s husband, Bob, said since the position of roadmaster is considered to be a public office, it was illegal for Vaughn to be paid.

Bryan Punk of James City asked why Bob Reigel was getting calls from the auditor general’s office in the first place as he is not an elected official.

Christy Reigel said the auditor general called her husband as a witness. Kevin Moran of James City was incensed that Bob Reigel would put the township at a financial risk over Vaughn.

“You’re willing to bury this township over your vendetta with (Vaughn),” Moran said.

Vaughn’s wife, Jackie, who is also a township auditor, asked who takes care of the liquid fuels account for the township, and who signs the payroll checks. Christy Reigel said she performs both duties.

Wolfe said all of the information he has received on the topic was turned over to township solicitor David Pontzer of Pontzer & Pontzer of Ridgway, saying the issue was now in the solicitor’s hands. While several people in attendance blasted Wolfe for inaction, Milstead defended his colleague, and pointed out how much time he puts in as supervisor.

“(Wolfe) spends a lot of time on this township,” Milstead said, “and all you people do is beat him up.”

In other news, Wolfe reported Seneca Resources of Houston sent Pontzer a letter requesting all the companies which bond roads in the township to meet to discuss road bonding issues. Seneca is currently not bonded in Highland Township.

Marsha Buhl of James City thought the supervisors should make Seneca pay up or get them to stay off the roads.

Sheriff Theresa Merritt, who was in attendance at Wednesday’s meeting, said any supervisor and the township road crew can flag down any truck and request to see the bond, and if the driver is not able to produce a bond, shut the company’s trucks down in the township.

Wolfe said while Pontzer told him there are many municipalities in Highland Township who have various issues with Seneca, he has not noticed any problems with ARG Resources of Bradford. Township resident Ray Bester concurred.

“ARG (Resources) is an angel compared to Seneca,” Bester opined.

Meanwhile, Wolfe read the decision letter of the State Workers Compensation Office of Adjudication in a case filed by State Workers’ Insurance Fund, the township and Matthew W. Fuchs Esq. of Erie to terminate the compensation of former Highland Township firefighter Daniel Hulings after an injury suffered in the line of service in January of 2013.

The order read, “The Termination Petition is denied and dismissed. Employer shall reimburse Claimant for responsible litigation costs of $4,287.05. Employer shall pay these costs directly to Claimant’s counsel for appropriate distribution. Employer shall continue to deduct a 20 percent fee from the wage loss benefits payable to Claimant, and shall send that fee directly to Claimant’s counsel. The dispute is closed.”