TAFT, Calif. -- An external investigation of City Manager Bob Gorson revealed he did not overstep his bounds in giving pay raises to city department heads.

Attorney Michael Jenkins gave a report on his legal opinion on the matter before a special session of the Taft city council Wednesday night, likening Gorson to a CEO with the concil serving as a board of directors.

As such, "he is free to negotiate compensation with those department heads, and to execute an agreement with [department heads]," Jenkins said. "Your code expressly provides for that."

Council members called the meeting a "public inquisition," with several testy moments including councilman Cliff Thompson and Gorson lobbing the same piece of paper at each other.

Gorson was mostly quiet during the meeting, except for one exchange where he told Thompson, "You could at least apologize to the City of Taft's employees, whom you've been harassing for several months."

Thompson, who was unhappy with Gorson over the raises that were approved without council approval, initiated the investigation.

"Mr. Gorson sat there with a straight face and told this community that he'd cut everything that he could possibly cut, knowing full well that he had given those raises against council direction," Thompson said, referring to the city's budget that has been tabled pending the outcome of Jenkins' findings.

Jenkins also investigated a failed real estate venture between Gorson and Thompson, in which Gorson gave $200,000 to Thompson in 2007 for properties in Ford City.

Neither man reported the investment in financial documents until just a few months ago. But Jenkins ruled it was money for a business deal and not a loan, which would have created a severe conflict of interest.

Gorson, who at times appeared defiant in the meeting, a far cry from his reputation as the most positive man in Taft, seemed relieved after the meeting.

"It's a difficult process, and we've got a lot of work to do, including some damage control," Gorson said. "We need to convince people that we're serious people that have a grand vision and we're ready to implement it and get away from the sideshows."

Despite the desires by some to hold the meeting behind closed doors, Mayor Dave Noerr insisted on a public meeting, to make sure the community knew all the facts.

"Now we will move forward doing the people's business, and we will move this personality stuff out of these chambers," he said.

The council accepted and filed both of Jenkins' reports. Thompson said he wants to look into giving the council a greater say in the matter.