If the disconnection occurs, 31 households at the Cooper Point property could be without water, and likely homeless within a few days.

Both sides -- the city and owner Eli Moreno -- continue to point blame at the other.

And tenants continue to stress over whether they will have running water on Monday.

"There is nothing that we can do about that," said David Smith, Moreno's attorney. "It's really (the city's) decision.

"Our client doesn't have $4,000 to pay."

City Attorney Bob Sterbank disagrees.

"They have full power to make a small $4,000 payment to the city, for which they have plenty of rental income to make," he said. "And if they choose not to pay for the water, it will be Mr. Moreno and his companies who will be kicking out the tenants, and not the city."

City officials notified tenants Thursday of the city's intent to disconnect the water.

Moreno owes more than $21,000 in outstanding solid waste bills. Moreno also owes a total of about $9,000 for water service.

But to keep the water on, the city informed him that he must pay $4,178.75 in cash or certified check. The city no longer accepts personal or business checks after Moreno bounced a check last year.

The initial bill for December water service was due Jan. 23. A 10-day grace period was given. The city then issued a past due notice, which allowed another 15 days to pay.

No payments have been received, but attorneys offered to pay $500 per week.

"This was unacceptable, particularly given the past history and that the owner is apparently collecting a $60 'utility fee' from each unit in addition to rent," wrote City Manager Dick Cushing in his weekly report to council.

The last time the Forest Glen account was fully paid was in 1999.

Smith also pointed to how the city of Auburn dealt with Moreno, taking him to court but not disconnecting the service. He also suggested placing a lien on the property.

Assistant City Manager Steve Hall said the difference between Auburn and Olympia is that Moreno already has been on a payment plan here and failed to meet the requirements. In Auburn, the plan just got started.

While the city can place a lien on the property, it presents challenges and no incentive for the owner to pay delinquent or future utilities, according to the city.

Sterbank said utility liens can cover only four months of delinquent payments and that the city can enforce the water utility lien only if it first shuts off the water service.

Olympia Councilwoman Laura Ware said she supports the city's approach, and said the city is working with various groups to make sure tenants can find a home.

"I wish we didn't have to," Ware said. "He has left us no choice, and I have no explanation for him. I have no explanation for why he is the way he is.

"We have let this go in the past, but he's not letting us let this go this time."

Local attorneys and the Thurston County Tenants Union informed tenants Friday of their rights if the water is shut off.

If the water is shut off, Moreno would be violating state law, and the tenants are entitled to claim as much as $100 for each day the water is off.

Groups also are looking to set up an escrow account, where tenants' rent and utilities could be paid to the city instead of paying Moreno.

That money could be used to pay the balance of the water bill, or a judge could decide to direct the money elsewhere, said Pat Tassoni of the Thurston County Tenants Union.

The details of such an account are still in the works.

"We're just hoping this creates another opportunity for tenants to make sure they have water service," Tassoni said.

The potential water disconnection is another chapter in the Forest Glen saga.

Moreno faces criminal charges for allegedly violating the city's building code, re-renting ordinance and operating without a business license.

A trial date has been set for March 25.

Tenant complaints at Forest Glen date back to 1998.

Tests have confirmed the presence of toxic mold. Asbestos also has been found.

In August, the city conducted its second mass inspection of units there, and violations were found in nearly every apartment.

"I think if the city is willing to shut off these tenants' water, the least they could be doing is to provide them money to relocate them, even if that means putting them up in a hotel until they find a place," Tassoni said.

Deana Poole covers Olympia for The Olympian. She can be reached at 360-704-6869 or dpoole@olympia.gannett.com.