CLEARLAKE – The Clearlake City Council will explore selling its state repayment obligations in exchange for bonds that would cover an 8-percent loss of tax revenue when it meets this Thursday.

The meeting will be held in the council chambers at Clearlake City Hall, 14050 Olympic Drive.

The council will meet for a special closed session at 5:45 p.m. to discuss labor negotiations before the public portion of the meeting begins at 6 p.m.

City Administrator Dale Neiman is taking the proposal regarding the loan obligations to the council. The item is discussion only, with no action yet required.

His report to the council explains that the state adopted legislation that requires the city loan it 8 percent of its property tax revenues, which would amount to $169,000.

He said the California Communities Joint Powers Authority is working on a program to issue bonds in exchange for those state repayment obligations. The city otherwise wouldn't be paid back until June 30, 2013.

Neiman said the city has asked the authority to provide information on the program's viability. He noted that it's not a certainty that the program will be implemented, as it requires urgency legislation that must have a two-thirds approval margin, which he said it difficult to obtain.

In other business, city staff will present to the council a recommendation on awarding a bid for the Lakeshore/San Joaquin Slide Repair Project.

A report from Neiman notes that staff is going through the bid documents and submittals and will have a final proposal ready by the Thursday meeting. He noted that the lowest bid came from Fedco Construction for a total of $197,507, while the highest, for $261,877, came from Epidendio Construction.

On Thursday, the council also will consider executing an agreement with Coastland Civil Engineering for engineering design services in the amount of $21,510.

The agreement is for the Dam Road Improvement Project, which will widen a 700-food section of Dam Road and provide a half-mile of Class II bikeway striping, according to a report to the council from City Clerk Melissa Swanson.

Other items on the agenda include a request from the Clear Lake Chamber of Commerce to waive the senior center rental fee for an upcoming bass tournament, and the council's presentation of a proclamation in honor of National Assisted Living Week 2009, “Traditions of the Heart.”

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