CLEARLAKE, Calif. – In its last meeting of 2016, the Clearlake City Council welcomed newly elected and reelected members and discussed what's next for the road sales tax voters approved last month.
With the final canvass for the Nov. 8 election completed on Tuesday, the council was required to accept the final election results, City Clerk Melissa Swanson explained to the council.
Elected on Nov. 8 were Nick Bennett, who had been appointed to serve out the rest of Denise Loustalot's term earlier this year; Joyce Overton, who won a fourth term; and businessman Phil Harris, the council's new member.
Also on the ballot in Clearlake was Measure V, the one-cent specific road tax that with 68.8 percent exceeded the supermajority needed to pass.
Two other measures – W, to change the city clerk's job from elected to appointed, and X, which did the same for the city treasurer post – also were on the ballot. Measure W passed and Measure X did not, even though no one has run for the treasurer's post in nearly a decade.
After the council voted 4-0 to accept the results – with Mayor Russell Perdock, who is in Mississippi, present via phone – it was time to administer the oaths to Bennett, Harris and Overton.
Afterward, a brief break was held for a meet and greet before the newly sworn council members took their seats on the dais.
At the end of the meeting, the council voted to keep Perdock and Bruno Sabatier as mayor and vice mayor, respectively, for another year out of the desire for continuity in the midst of a lot of big projects coming up in the new year.
One of the main items on the agenda was an update from staff on the city's ballot measures, in particular, Measure V.
“So Measure V passed. Now what?” asked Finance Director Chris Becnel.
Becnel said the city must supply a list of documents to the State Board of Equalization, which will collect the tax for the city.
He said in January the staff will return with items that the council will need to approve, including an agreement to allow the Board of Equalization to begin the process of setting up its system of collecting the tax, which also includes an agreement that the city reimburse the state for the setup cost, which is not to exceed $175,000.
“I don't expect it will be that much,” said Becnel, explaining that the process of setting up a transaction use tax is fairly complicated.
The council also will need to approve an agreement authorizing the state to go out and collect the tax, Becnel said.
He said those documents are among the items that the city needs to have back to the Board of Equalization by Feb. 1.
The Board of Equalization will take about two months to set up its system for collecting the tax, with actual collection beginning on April 1, Becnel said.
Becnel said that the city would likely see its first tax proceeds around July 1, as the state distributes sales tax proceeds quarterly. That first quarter's sales tax revenue is estimated at around $400,000.
While Becnel said Measure V is expected to bring in about $1.6 million annually, it could be more. Based on the closing of the city's books this last year, Becnel said annual revenue could be closer to $1.7 million.
Because of the timing of the sales tax distribution, “We're not going to be out grading roads and paving roads next week because the money doesn't come in for a while,” he said.
In the meantime, Becnel said the council needs to set up its five-member citizens oversight committee, which will meet annually to review expenditures and appropriations and ensure all such revenues are spent according to the expenditure plan.
He said each council member will appoint one member to the committee. Appointees' terms will coincide with the council members who appoint them.
The decision on who to pick is purely up to the council members individually, as the whole council isn't required to approve the appointment. The only appointment that does require a council vote is the committee chair, which will be appointed by the mayor with the council's support, Becnel said.
He suggested the council decide Thursday night when to agendize their committee selections. “We have a little time to do that but you need to start thinking about who you want to appoint,” he said, adding that Swanson had put together an application if council members wanted to sue it.
Harris asked if the city would be able to start road improvements this summer and repay itself once tax revenue proceeds come in.
Becnel said yes, that the city could make a loan to itself, explaining that the Measure V proceeds will go into a separate fund.
Based on conversations he's had with city Public Works Director Doug Herren, Becnel said it's expected that the first work will be done on the city's dirt roads, which will be graded. A preliminary estimate on that work is about $500,000.
During the discussion on when to make the oversight committee appointments, Harris said he wanted to shoot for March, but the council agreed that time was of the essence and that the process should be completed sooner rather than later.
Bennett said one of the measure's selling points was the oversight committee, and he believed getting its selection under way quickly would reassure voters that the city is doing what it promised.
During public comment, former Council member Denise Loustalot, who now serves on a new municipal advisory committee serving the Clearlake Oaks area, said it was important for the committee to start meeting and mesh by the time the real work starts.
Sabatier asked about the timeline if council members wanted to use the application process. Swanson said it would be sufficient if they put it out with 21 to 30 days' lead time.
The council reached consensus to have their selections ready for the second meeting in January.
Regarding the other measures, Folsom explained that due to Measure W's passage the city clerk's job will become an appointed – not elected – position in two years, when Swanson's current term ends.
Because Measure X didn't pass, Folsom said he and Becnel will continue to cover the city treasurer's tasks.
Pointing out that no one has run for the treasurer job in nearly a decade, Overton said she didn't think the public understood the measure and that it should have been pushed more.
During his report, Folsom told the council, “Get ready for a busy 2017.”
He also thanked everyone involved with the passage of Measure V, which he said he believes is going to be the catalyst for changing Clearlake's image and moving it to the next level.
Also on Thursday, the council honored longtime police and city volunteers, and approved a development agreement with FE Monterey LLC for the property located at 15885 Dam Road. The city will receive $50,000 for road improvements as part of the agreement.
Melton Design Group also was on hand to give a presentation on the Austin Park Master Plan. The project is undergoing review under the California Environmental Quality Act and so no formal action by the council was requested by staff.
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Newly elected Clearlake City Council members take oaths; council discusses next steps for Measure V
- Elizabeth Larson