LAKEPORT – The county's Mental Health Department received the Board of Supervisors' go ahead on Tuesday to terminate one of its leases and discuss the second with the property owner.

Director Kristy Kelly asked the board to consider terminating the leases, at 991 Parallel Drive in Lakeport and 15145 Lakeshore Blvd. in Clearlake, in an effort to save a total for $204,504 for the 2009-10 fiscal year and $237,060 for the 2010-11 fiscal year.

The plan is part of a cost-cutting and consolidation plan that the department is carrying out to meet $500,000 in state cuts and hits to Proposition 36 money, according to Kelly. Proposition 36, passed by voters in 2000, allows for treatment instead of incarceration for some nonviolent drug offenders.

The board approved eliminating 18 Mental Health Department positions in April because of the department's funding challenges, which arise not just from cuts in state funding but also due to having to pay the state back for overpayments on care claims.

Nancy Ruzicka, who owns the Parallel Drive property, contacted Kelly on Monday and asked that the county continue the building's lease until they can meet. Ruzicka told Kelly that she wanted to work out an agreement to secure a tenant for all or part of the building.

Kelly asked the board to hold off on the Parallel Drive decision, but to move forward with terminating the Clearlake lease.

Supervisor Anthony Farrington asked Kelly if the department still would be able to occupy the buildings if Proposition 36 cuts weren't on the table.

Sighing heavily, Kelly said the lease terminations already were on the table before the Proposition 36 cuts came up.

Farrington asked County Counsel Anita Grant's opinion on the leases. Grant suggested it was premature to stop the lease in Lakeport, which is occupied by Mental Health and Alcohol and Other Drug Services (AODS).

Kelly said an outpatient clinic is located at the Clearlake facility.

“This is going to be the year of tough, tough decisions,” said Supervisor Rob Brown.

He said the lease termination will have a huge impact on the operation and the landlord. “We have to make the tough decision somewhere along the line.”

Cox said a new story is coming out of Sacramento every day, but the county does know they've lost some mental health funding. He agreed that it was premature to decide on the Lakeport building's lease.

Cox added that rents in Lakeport are higher than in Clearlake. Supervisor Jeff Smith suggested the county, in an effort to save taxpayer money, should go where the rents are cheaper. Supervisor Denise Rushing put in a good word for Lucerne, where she noted rents also are affordable.

Farrington made the motion to hold off on suspending the Ruzicka lease but to move forward on suspending the lease in Clearlake.

Smith said he didn't want to see the cuts to Mental Health. “This is a drastic cut that I hate to see happen,” but it's absolutely necessary, he said.

“We can't afford to loan mental health anymore money at this point,” Smith added. The county has made several large loans to the agency to help it pay its bills.

The board unanimously approved the Clearlake lease termination.

The supervisors also approved a resolution approving an agreement between the county and the state Department of Mental Health for state hospital beds in the 2009-10 fiscal year.

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