Prior to going to the bar, Geronimo (Leslie Nielsen) met with Brenner (Patrick McGoohan) at the amusement park. While walking and being photographed, they discussed how to make the drop.
"Remember the bit we did in La Paz back in '66? Clickety-click."
"Why all the jazz, Nelson?"
"Oh, that's the way Mr. Steinmetz wants it."
Clickety-click
That's the reference to a job they had pulled previously, using the same M.O. - Geronimo goes to the cigarette machine, makes believe it's broken, clicks on the dispenser - LOUDLY - which is the signal to the man at the bar (Melville in this case) and he follows him out to make the drop.
Well, the answer which has always stuck with me is that Geronimo, who's been put away in hiding, courtesy of The (CIA) Director and is now free to wheel and deal, has uncomfortable knowledge about Brenner.
Again, to the amusement park scene we go...
Geronimo: Double agents don't go broke. They die sometimes, but they don't go broke.
Brenner: Oh, come along now. That theory of me being a double agent? You know there's no fact in it.
Geronimo: The agency doesn't deal in facts, only rumors. And I have a lot more that rumors, Nelson.
Geronimo's knowledge of Brenner being a double agent is what causes Brenner to kill him. Now that Geronimo is back in action (Geronimo earlier says, "You thought I was dead, didn't you?"), Brenner realizes he must eliminate him, lest he blow his cover.
Yes, Brenner and Steinmetz are the same person. Brenner uses his Steinmetz disguise with Melville because he wants to throw su****ion on Steinmetz. He rigs the car to blow up and knows that Melville will report him to the police, complete with a sketch. All of this is done in an attempt to throw the police (Columbo) and The Director off the trail.
Glad I could help. Columbo is my favorite show, as well. There were many decent shows from the 70s, but this one had superior qualities, which has led to its lasting legacy.
Since I have you, who is Melville and how does he fit in the story? On the beach there talking about if I remember $350,000, what the details of who’s paying the money and who’s getting it??