SAN FRANCISCO – Pacific Gas and Electric Company (PG&E) said Tuesday that it expects its system-average bundled electric rate to remain nearly flat into 2011.

The rate decreased by 0.8 percent on January 1 and will increase by 1.5 percent on March 1, resulting in a net increase of 0.7 percent, the company reported.

PG&E’s March 1 rate would be approximately 2 percent below its March 1, 2010 rate.

The rate change primarily reflects electric transmission-related costs approved annually by the Federal Energy Regulatory Commission. Actual bill effects will vary among customer classes and by customer usage.

The March 1 rate change does not include revenue that is covered by PG&E’s 2011-13 General Rate Case.

Based on the proposed and alternate decisions recently issued by the California Public Utilities Commission (CPUC), PG&E anticipates that the final decision will further increase the system-average bundled electric rate by less than 0.1 percent.

Average residential electric bills are expected to show the following changes.

Customer Usage      January 2011      March 2011     Change

550 kWh                   $78.86                  $79.70              1.1%

850 kWh                   $173.67                $178.64            2.9%

1,500 kWh                $427.03                $440.92            3.3%

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CLEARLAKE, Calif. – The plans for a regional shopping center development in Clearlake are being discussed with local officials and are set to make a reappearance on the Clearlake City Council's agenda this month.

KK Raphel's proposal to build the shopping center on Highway 53 at the site of the now-closed Pearce Field airport property had appeared stalled last year after the Sierra Club Lake Group filed a lawsuit over the city not doing an environmental impact report (EIR) on the project.

But Clearlake's interim city administrator, Steve Albright, met with developers in mid-February to get up to speed on the project, with developers expressing their continued interest in moving forward.

“The bottom line is we're able, willing and want to do it” – but only provided the city is willing to partner on the costs of infrastructure improvements, said Mike Raphel, a principal in the company.

Raphel said he's been contacted by community members asking him about the project's status. Likewise, in recent months community members have gone before the Clearlake City Council during public comment to speak in favor of the shopping center, arguing that it will bring much-needed jobs and sales tax revenue.

The project appeared to be a dividing line between candidates for Clearlake City Council last November, with Jeri Spittler and Joey Luiz – who had questioned the plan – elected over open advocates of the center like Jim Scholz and Planning Commissioner Bill Perkins.

Two days after Spittler and Luiz were elected, then-City Administrator Dale Neiman, a staunch project advocate, resigned, saying he wasn't willing to work with the two new council members.

Neiman also told Lake County News in an interview on Nov. 4, the day he announced his resignation, that the shopping center plan – which he had stated in community meetings was an important project for the city's future – was finished.

“If the Lowe's project was still viable, I felt I had an obligation to stay here until that was resolved one way or the other,” he said at the time. “But since the Lowe's project won't be moving forward it really doesn’t make sense for me to stay.”

He said that with the election he believed a 3-2 voting block had formed against the center, composed of Spittler, Luiz and Mayor Joyce Overton, with Council members Curt Giambruno and Judy Thein likely to continue their support.

Overton said at the time that she was against the process involved with the shopping center's approval, but not necessarily against the center or out to kill the plan, and that it would be an issue for the council to decide in the future.

She said she wasn't against using some of the city's redevelopment funds for the project, “but I am against using it all.”

When Neiman left he instructed the city's attorney working on the lawsuit to stop work on the case until his successor was chosen or the council gave direction. By that time the Sierra Club already had received from the city a proposed settlement agreement.

In early February, Albright – the newly retired city manager of Trinidad in Humboldt County – joined the city as its interim administrator, a position he'll hold while the recruitment for Neiman's permanent replacement goes on this spring.

Albright said he traveled to Sacramento Feb. 18 to meet with KK Raphel about the project. That same day, he met with the city's attorney to discuss redevelopment issues and the project.

“Since it's still in real estate negotiations I don't have anything to report,” Albright told Lake County News afterward.

He said he'll discuss those negotiations in a closed session with council on March 10.

Before the city can move forward on the plan, Albright said the city needs to sit down with the Sierra Club and negotiate an agreement about how to settle the lawsuit

“So that's, to me, the next step,” he said.

Cheri Holden, chair of the Sierra Club Lake Group, said from their perspective the suit has remained at a standstill – “with no movement whatsoever” – due to the city's reorganization.

However, Albright informed the Clearlake City Council at its Feb. 24 meeting that as part of the March 10 closed session he also intended to bring to them a proposed settlement to the Sierra Club lawsuit.

Albright, who told the council that one of his objectives is to get the lawsuit settled, said the city won't look at an agreement unless they're confident that it's a reasonable settlement and will allow them to go forward with analyzing the project.

He also told the council Feb. 24 that, while there is a concern that deadlines for the shopping center deal have passed, that's not the case.

During his Feb. 18 meeting with legal counsel, Albright said it was brought to his attention that the disposition and development agreement with KK Raphel includes a clause that stops the time lines for a variety of cases, including litigation.

Once the case is settled, the time lines would resume. Albright said the city would then need to be concerned about following through. “We could be open to a lawsuit if we don't perform.”

He told the council his job is to work on the performance part of the city's agreement with KK Raphel.

“I know it's controversial but we still have an agreement,” he said.

Many community members have come forward to speak on behalf of the project.

On Dec. 9, at the same meeting as Luiz and Jeri Spittler took their oaths of office, Clearlake resident Janice Cooper spoke during public comment, introducing the “Citizens for the Prosperous Growth of Clearlake.”

She said the group's goal was to support the council in efforts to lead the city into prosperity. Cooper added that creating jobs, revenue and preventing retail leakage through developing a regional shopping center will achieve those objectives.

Then, at the Feb. 10 council meeting, a group of community members took to the podium during public comment to urge the council to move on the shopping center.

“If you need to do an EIR, do it,” said Carolyn Chavez, a former council member. She warned that other parts of the county were courting developers, and that the center would help the city save threatened redevelopment funds.

Scholz told the council, “The only thing stopping this project is the will of the city,” adding, “Please help our city grow.”

At last week's meeting, Supervisor Jeff Smith also spoke in favor of the project, noting a survey he had done of area residents who he said were largely in favor of it, and advocating what he said were its positive benefits.

Developer is still interested

Following the Nov. 2 election, KK Raphel wasn't sure what was next for the plan.

“It probably can't move forward the way it was,” Raphel said at the time, recounting the effort that went into making a proposal to the city, a process that lasted several years.

Somewhere along the way, he noted, “people started to oppose the project.”

The fundamental issue was whether the city would still be willing to spend the close to $6 million in redevelopment funds to assist with addressing the site's infrastructure problems, he said. If the city wasn't interested, the firm planned to move on.

But in a late February interview Raphel – noting that the concerns for the project were the same – sounded more optimistic.

“We're still interested in going forward, we're still interested in working, but we want to make sure that the council's on board, that they want to go forward, and we still need to deal with the Sierra Club,” Raphel said.

He added, “Our goal is to get back into it,” but that they needed to get a sense of where the city is.

Following the election, Raphel said he called all of the council members. “I think the feeling was, let's let things settle down,” he said. “So it seems like now is a good time.”

As for possible time lines, Raphel said if the Sierra Club dropped the lawsuit and required no EIR but more studies, the project could be completed in 14 to 16 months. However, if an EIR is required, it would take about three years to complete the project.

“It's just a function of the resolution of the Sierra Club,” he said.

Raphel said an EIR will cost his firm $250,000 to $300,000. “If we have to go through an EIR and that's what they're going to require, we can go through that,” but Raphel said the firm wants assurance that the city will commit funds to improving infrastructure, and that there is a “finish line.”

If the project moves forward, a Lowe's could still be the anchor store, although Raphel said the corporation would have to be recontacted. Other anchor tenants, like Kohl's or Target, also are possible. “Until we get direction, there’s no reason to ask the question,” he said.

It's been slow for builders in the shopping center industry. At a state industry update in Sacramento a few months ago, Raphel said it was reported that one shopping center had been under construction last year, and that wasn't expected to change in 2011.

There is an inventory of existing houses, and Raphel said retail usually follows housing. There are many retail vacancies available at lesser rates than building new storefronts from the ground up.

“From the development standpoint you're not seeing much new happening anywhere,” he said, and deals are hard to come by, although, “It's a good time to get through entitlements.”

Raphel said Lake County is unique because there is so little retail in the area, which means the major retailers won't have a new store taking away from their adjacent stores. That was a reason Lowe's felt comfortable with the new market.

Raphel said the shopping center can bring an estimated $450,000 in annual sales tax into the community, allowing improvements along the downtown corridor on Lakeshore Drive.

Many community members said in public meetings on the plan held last year that they wanted the redevelopment funds devoted not to Pearce Field's infrastructure but to Lakeshore Drive instead.

“Somehow it became one or the other,” said Raphel. “Our attitude has always been, it could be both.”

He said with the Lake County Sanitation District going forward this year with issuing bonds for improvements to its Southeast Regional Wastewater System, the needed redevelopment funds may be less than the $6 million that's been estimated.

Raphel said a number of cities have realized that they need to both have revitalized downtowns and shopping centers – and that one can lead to another.

“Windsor is a prime example,” he said, noting that the town once had been obstinate about big box stores, but how have allowed them while rebuilding the downtown.

Raphel added, “At some point Clearlake will get there, with us or without us.”

E-mail Elizabeth Larson at This email address is being protected from spambots. You need JavaScript enabled to view it. . Follow Lake County News on Twitter at http://twitter.com/LakeCoNews , on Facebook at http://www.facebook.com/pages/Lake-County-News/143156775604?ref=mf and on YouTube at http://www.youtube.com/user/LakeCoNews .

LAKEPORT, Calif. – When it meets Tuesday the Board of Supervisors will discuss proposed changes to the workforce investment area in which the county participates, consider approving a letter supporting alternatives to SmartMeters and continue two hearings related to Bottle Rock Power's proposed expansion.

The meeting will begin at 9 a.m. Tuesday, March 1, in the board chambers on the first floor of the Lake County Courthouse, 255 N. Forbes St., Lakeport.

In a discussion scheduled for 10:30 a.m., the board will take up the issue of the county's proposed modification to the workforce investment area, which involves training and job placement for job seekers and additional services for businesses.

The county is proposing to leave the North Central Counties Consortium (NCCC) – which includes Lake, Glenn, Colusa, Sutter and Yuba – and join in a new workforce investment area agreement with Napa County.

Local officials have cited concerns with NCCC and a desire to partner with Napa because of better alignment of industries.

On Feb. 24 the California Workforce Investment Board Issues and Policy Special Committee agreed to forward the proposal to the California Workforce Investment Board in May, as Lake County News has reported.

The Lake One-Stop Inc., the local service provider which has contracted with NCCC to help job seekers and employers, carried out two letter-writing campaigns against the proposal, which Supervisor Denise Rushing said will not disrupt the One-Stop.

“The bottom line is, there’s a lot of misinformation flying around Lake County because the One-Stop is worried about its existence,” Rushing told Lake County News following the Feb. 24 meeting.

Rushing emphasized, “This is about strategy and governance and oversight.”

She said Lake County can look forward to a “wonderful and refreshing” working relationship with Napa County.

The next step, which is being taken Tuesday, is to have a public forum on the matter, Rushing said.

“It's time to engage the public more fully in this process so everybody knows what's on the table,” she said.

In other business, in a discussion originally scheduled for Feb. 15, the board will consider options for developing a new Middletown/South County area substation for the Lake County Sheriff’s Office. The matter will be discussed at 9:20 a.m.

As the result of a January discussion on Pacific Gas & Electric Co.'s SmartMeters, at 10:45 a.m. the board will consider a proposed letter in support of Assembly Bill 37, which would require the California Public Utilities Commission to identify by Jan. 1, 2012, alternative options to SmartMeters.

At 1:30 p.m., the board will continue discussion on the Friends of Cobb Mountain's appeal of the Lake County Planning Commission's certification of Bottle Rock Power's final environmental impact report. The board held a five-and-a-half-hour-long hearing on the matter at its Feb. 22 meeting.

At 2:30 p.m., the board will host a public hearing to consider Bottle Rock Power's request to rezone 60 acres from Planned Development Residential-Frozen parcel size to Rural Lands-Frozen parcel size. The proposed rezone area is located within the Binkley Leasehold at 6743 and 7385 High Valley Road, Cobb.

In an untimed item, the board will consider appointments to the Sheriff’s Office of Quality Assurance Exploratory Committee.

The board will hold a closed session to discuss labor negotiations with employee associations.

Other items on the agenda include the following.

Timed items

9 a.m.: Approval of consent agenda, which includes items that are expected to be routine and noncontroversial, and will be acted upon by the board at one time without discussion; presentation of animals available for adoption at Lake County Animal Care and Control; consideration of items not appearing on the posted agenda, and contract change orders for current construction projects.

9:05 a.m.: Citizen's input. Any person may speak for three minutes about any subject of concern, provided that it is within the jurisdiction of the Board of Supervisors and is not already on the agenda. Prior to this time, speakers must fill out a slip giving name, address and subject (available in the clerk of the board’s office, first floor, courthouse).

9:10 a.m.: Consideration of proposed findings of fact, assessment appeal of James Robello, Application Nos. 01-2010 and 76-2010, 2315 Eastlake Drive, Kelseyville, CA (APN 044-192-190-000).

9:15 a.m.: Presentation of proclamation designating the month of March 2011 as Meals on Wheels Month in Lake County.

9:45 a.m.: Presentation of proclamation designating the week of Feb. 28 to March 4 as Invasive Species Awareness Week in Lake County.

9:50 a.m.: Presentation of proclamation expressing gratitude for the service of local community member Morrell “Mo” Fitch.

10 a.m.: (a) Consideration of customer request for variance from Appendix A of the Sewer Use Ordinance, Article II, Section 205 (property located at 14855 Olympic Drive, Clearlake - APN 039-550-03 – Richard Green); and (b) consideration of proposed resolution approving a variance of the

Sewer Use Regulations for property located at 14855 Olympic Drive, Clearlake (APN 039-550-03 - Richard Green).

11 a.m: Request to approve lease for an office building at 6302 13th Ave., Lucerne, for the Mental Health Department. Carried over from Feb. 15 and Feb. 22.

Nontimed items

– Supervisors’ weekly calendar, travel and reports.

– Consideration of appointments to the heritage commission.

– Consideration of proposed resolution determining Redemption Fund Surplus in North Lakeport Water Assessment District 4-1, and ordering its disposition. Continued from Nov. 16, 2010.

– (a) Consideration of request to appoint Don Hoberg as interim heavy equipment/fleet maintenance superintendent; and (b) consideration of request for a 900-hour unique position of mechanic assistant.

– Consideration of proposed memorandum of understanding between the county of Lake and Lake Transit Authority (LTA) for construction management services, inspection of new bus stops and bus stop sign maintenance, in the amount of $48,000

Consent agenda

– Approve minutes of the Board of Supervisors meeting held on Feb. 15 and Feb. 22 (Feb. 15 minutes are carried over from Feb. 22).

– Adopt proclamation designating the month of March 2011 as Meals on Wheels Month in Lake County.

– Adopt proclamation designating the week of Feb. 28 to March 4 as Invasive Species Awareness Week in Lake County.

– Adopt proclamation expressing gratitude for the service of local community member Morrell “Mo” Fitch.

– Adopt resolution amending Resolution No. 2010-225 establishing position allocations for fiscal year 2010-11, Budget Unit No. 1121, Auditor-Controller (replacing one accounting technician, senior and one account clerk I/II with two accounting technicians).

– Adopt resolution amending Exhibit “A” to the county conflict of interest code (revising and updating the list of designated employees in various departments).

– Approve first amendment to agreement between the county of Lake and Victor Treatment Centers Inc., for specialty mental health services, with no increase in amount, for fiscal year 2010-11, and authorize the chair to sign (omitting the language referring to the site specific location, so as to include all Victor Treatment Centers in one contract and replacing Exhibit B to reflect Victor Treatment Centers, Inc.’s current fee schedule).

– Adopt Resolution amending Resolution No. 2010-165 establishing position allocations for fiscal year 2010-11, Budget Unit No. 2302, Probation Officer - Juvenile Court and Budget Unit No. 2303, Juvenile Home (deleting one assistant chief probation officer, one senior deputy probation officer and one deputy probation officer I/II/III allocations and adding two chief deputy probation officer I/II and one staff services analyst I/II allocations).

– Approve plans and specifications for Elk Mountain Road MPM 27.53 Storm Damage Repair in Lake County, Bid No. 09-12, and authorize the Public Works director/assistant purchasing agent to advertise for bids.

– (a) Approve out of county travel, in excess of 1,500 miles round trip, to Spokane, Wash., on March 4 of Social Worker III Linda Puertolas, to tour a group home facility for pending client placement; and (b) approve future out of county travel of Social Worker III Linda Puertolas and client, to Spokane, Wash., for client placement and routine monthly visits of client, pursuant to state regulations governing Child Welfare Services.

– Approve authorized provider agreement between the county of Lake and the Sonoma and Mendocino County Chapter of the American Red Cross for training services, and authorize the Social Services director to sign.

– Approve encroachment permit for NorCal Boat and Ski Club for boat and ski races on Clear Lake during 2011, and authorize the chair to sign.

E-mail Elizabeth Larson at This email address is being protected from spambots. You need JavaScript enabled to view it. . Follow Lake County News on Twitter at http://twitter.com/LakeCoNews , on Facebook at http://www.facebook.com/pages/Lake-County-News/143156775604?ref=mf and on YouTube at http://www.youtube.com/user/LakeCoNews .

LAKEPORT, Calif. – A funding request for a housing project in the redevelopment area and a rehabilitation project for Library Park's bathrooms are among the items on the Lakeport City Council's agenda for its first meeting in March.

The meeting will begin at 6 p.m. Tuesday, March 1, in the council chambers at Lakeport City Hall, 225 Park St.

The full agenda and staff reports for the meeting can be downloaded at http://www.cityoflakeport.com/departments/home.aspx?deptID=88 .

In redevelopment business, City Redevelopment, Housing and Economic Development Director Richard Knoll will take to the council – sitting jointly as the redevelopment agency board – a request for redevelopment housing set-aside funds.

The Northern Circle Indian Housing Authority is seeking $120,000 to construct two affordable homes within the Lakeport Redevelopment Project Area, according to Knoll's report.

Under council business, Public Works Director Doug Grider is asking for authorization to proceed with requesting quotes for installing city-purchased plumbing materials as part of the Library Park Restroom rehabilitation project.

Grider's staff report to the council explains that Public Works staff is rehabilitating the restrooms with funding from a Per Capita Park Bond. He said a project manager has been hired to oversee the project, and staff is in the process of purchasing the materials from local suppliers in order to complete the project.

“Plans for the rehabilitation project include a change of layout, new stalls and urinals, skylights, updated lighting, wall treatments, and new plumbing fixtures,” according to Grider. “The existing sinks will remain.”

He said a plumbing contractor is needed to install the materials, the installation of which will be according to all building codes and will make the restrooms compliant with Americans with Disabilities Act requirements.

Grider also will ask the council to approve the purchase of a new fuel cardlock system and give him the go-ahead to return with a contract with final details for council authorization.

City Engineer Scott Harter will seek council approval of the South Main Street Pedestrian

Improvement Project's contract change order No. 9, in the amount of $1,500.

The change order will cover the cost of having contractor North Bay Construction relocate a water meter from its originally planned position on Main Street to a location on E Street.

Harter's report to the council said the move will better accommodate a vault installed check valve and allow for a single lateral to serve the irrigation meter and any future domestic meter to 562 S. Main St.

The council will hold a closed session to discuss labor negotiations with the Lakeport Employees Association and Lakeport Police Officers Association; conduct a performance evaluation of City Attorney Steve Brookes; and discuss a case of employee discipline.

E-mail Elizabeth Larson at This email address is being protected from spambots. You need JavaScript enabled to view it. . Follow Lake County News on Twitter at http://twitter.com/LakeCoNews , on Facebook at http://www.facebook.com/pages/Lake-County-News/143156775604?ref=mf and on YouTube at http://www.youtube.com/user/LakeCoNews .

LAKE COUNTY, Calif. – Lake County will mark its 150-year anniversary on May 20, 2011, and plans are under way for a countywide celebration.

The commemoration will begin with a proclamation by the Lake County Board of Supervisors at the Board meeting on May 17, followed by a signature Sesquicentennial Celebration event on Friday, May 20, at 5 p.m., in front of the Historic Courthouse Museum on Main Street in Lakeport.

The celebration will continue through the summer and fall with a presence at the major annual events held in each community.

A steering committee has been working for several months guiding the plans for the celebration.

Residents, community groups, and business owners and associations are encouraged to help by sponsoring an activity or event in their community.

Those interested in doing so may contact the Lake County Chamber of Commerce at 707-263-5092 for information about donations and sponsorship levels, in-kind needs, and volunteer opportunities.

The birth of Lake County

In 1861, Abraham Lincoln had taken office as president, the nation was on the brink of the Civil War, and Gold Fever continued to lure pioneers and prospectors to the state.

On May 20, 1861, nearly 11 years after California had become the 31st state in the union, California Gov. John D. Downey signed an Act of Incorporation into law and Lake County was born.

Called “The Clearlake Township of Napa County” and unofficially the “Hot Springs Section,” Lake County was carved from the northern section of Napa County.

The 1860 Census recorded 1,065 residents in this area, a population that doubled in 10 years. Who were they? Joining the American Indian population were farmers and ranchers, gold prospectors, war conscription evaders, and pioneers moving west in search of a new life.

Travelers make their way along Highland Springs Road. Photo courtesy of the Lake County Sesquicentennial Committee.

Over the years, many have been drawn to Lake County. Today, more than 65,000 people call Lake County home.

What has attracted these individuals to Lake County? For some, it may be the clean air, the wide open space, or the stunning lake or mountain vistas. For others, it may be opportunity, lifestyle, or family connection. For others still, it simply may be happenstance, luck, or serendipity.

Thus, Lake County has a long history of fascinating stories – stories of pioneering spirit and entrepreneurship, of agricultural traditions and recreational pursuits, of kindness and preservation, stories of heroes and visionaries, of traditions and family trees.

Downtown Lakeport, across the street from the then-Lake County Courthouse, now the museum. Photo courtesy of the Lake County Sesquicentennial Committee.

Be part of Lake County History: Tell your Lake County story

This year offers an opportunity to celebrate the coming together of people and pursuits into what has created a distinct woven fabric of community here in Lake County, a place we all call home.

Perhaps your Lake County heritage traces back to pioneer times of the 1860s, to Pomo and other Native American tribes hundreds or thousands of years prior, or a more recent connection in the past decade or two.

Whatever your story, you’re welcome to join in on the celebration and share it. Families, businesses and organizations are encouraged to tell their own story and connect it to the greater Lake County story on Facebook.

Check out the Lake County sesquicentennial Facebook page at:

http://www.facebook.com/#!/pages/Lake-County-Sesquicentennial/171845856177015 or follow the celebration on Twitter @LakeCo150.

To discover more, go online to www.LC150.org for information about Lake County sesquicentennial activities and events and for a fascinating look at historical video vignettes of life in Lake County in the 1860s. This site is updated regularly, so check back often.

INFORMATION ABOUT CALWORKS SPENDING HAS BEEN CLARIFIED.

LAKE COUNTY, Calif. – A special state committee is recommending that the proposal for Lake County to join with Napa County in creating a workforce investment area be forwarded to the full California Workforce Investment Board for consideration this spring.

The California Workforce Investment Board Issues and Policy Special Committee arrived at that consensus in a Thursday morning meeting in Sacramento, concluding that more weight needed to be given to the Lake County Board of Supervisors' decision to seek that partnership.

The workforce investment area is part of the federal Workforce Investment Act, which allocates funds to local organizations and agencies for educating job seekers and for assisting with connecting potential employees with employers. Locally, such services are provided through the Lake One-Stop.

Lake County is proposing to leave the five-county North Central Counties Consortium (NCCC) – which also includes Glenn, Colusa, Sutter and Yuba – and join in a new workforce investment area agreement with Napa County, as Lake County News has reported.

In the last 16 years there have been only a handful of attempts by counties to leave workforce investment areas, officials said Thursday, and Lake County's attempt is the first to encounter opposition.

An agenda packet and staff report released for the meeting contained an analysis that said there would not be significant funding shifts if the workforce investment area was changed. Nevertheless, EDD staff recommended against having Lake County leave the consortium, despite the fact that an earlier draft of the report had stated support for approving the application.

But after hearing input from county officials including Supervisor Denise Rushing and Lake County Social Services Director Carol Huchingson, the Investment Board Issues and Policy Special Committee – which didn't have a quorum – recommended letting the matter go before the California Workforce Investment Board in May.

The special committee said that the Board of Supervisors' opinion that the area be moved should carry more weight in the analysis, which county officials argued wasn't the case in the analysis put before the committee Thursday.

Rushing emphasized at the meeting that the Lake County Board of Supervisors did not want to be a part of the NCCC.

That has apparently been the case for some time, with the Board of Supervisors pulling out of a joint powers authority with NCCC in July 2009. The board then directed Huchingson to look at partnering with other areas. The county finally settled on Napa, which then initiated the formal process late last year to modify the workforce investment area.

The matter went to the Employment Development Department for analysis and consideration. Bruce Wilson, director of the Napa County Workforce Investment Board, noted at the meeting that EDD also was an adviser in the process of putting together the application to the state.

At the Thursday meeting, which was available by teleconference, Jose Luis Marquez, deputy chief of EDD's Workforce Service Division’s Program and Technical Assistance Section, explained that the local area modification Lake is seeking falls under a process created in 1995, in response to the fact that statute didn't explain how to deal with the attempt to leave a workforce modification area.

The modifications are rare, according to Marquez.

“To date, counting the modification that's being considered today, we have done four of them,” he said.

Of the other three, two were consensus moves with no opposition, and the third was an area that was being dissolved, he said. That makes Lake's case a first-of-its-kind situation in the state.

When there is disagreement in changing an area – such as the case with Lake attempting to leave NCCC – Marquez said a higher level of information and public scrutiny is required. “We try to take that responsibility very seriously.”

He said considerable material was assembled and the staff report – part of a 167-page packet including public comment letters – was “challenging” to assemble.

Of the proposal, Marquez said, “You could honestly argue it either way,” but staff was recommending that it not be approved.

Wilson said there were several reasons why Napa and Lake County would be a good fit, explaining that an integrated workforce would lead to a better aligned workforce development system for both counties and the state. The two counties share common interests, and agricultural and tourism industries.

“There are a number of concerns that we have with the analysis,” said Wilson.

Among them was that Napa County staff had worked in good faith with EDD to develop its application, which he said Napa changed based on state advice.

He said he had e-mail correspondence showing Napa County's discussions with EDD about the proposal were to be taken into account in the analysis. “We didn't see evidence of that.”

Wilson said that having EDD staff act both as advisers and analyzers of the application is “troublesome.”

The analysis also claimed that Napa was late 75 percent of the time in providing the state financial reports, which Wilson said was believed to be faulty information, reporting that Napa has submitted such reports 87 percent of the time.

“Napa is a compliance-driven organization,” he said, and one that takes seriously its role as a steward of taxpayer dollars, which total more than $45 annually, and $14 million just in the workforce division.

“I don't think it's a big leap to say we're going to be able to manage these funds very effectively,” Wilson said, adding that he wanted Napa's long history of managing federal and state workforce funds without incident to be added to the analysis.

Wilson said EDD also faulted the application because Napa County did not submit a completed joint powers agreement with Lake County before making the application.

“That is not in any directive,” he said, and Napa received no guidance that submitting it was needed. Had they known, a draft of the JPA – in the works over the course of the last year – would have been made available.

“To see us faulted in our application materials because of it is, I think, off the mark,” Wilson said.

He said Napa felt strongly that the EDD “did not have accurate or complete information” in its analysis.

Lake County officials make their argument

Rushing told the committee that Lake County's workforce program “is of great concern to the Board of Supervisors,” which represents the interests of constituents and the business community.

She said there has been a misconception – furthered by two letter writing campaigns initiated by the Lake One-Stop, the current service provider chosen by NCCC – that this is about the One-Stop itself.

“This is fundamentally an issue of governance and oversight,” said Rushing.

She said the Board of Supervisors wanted the One-Stop to work closely with the county's CalWorks program, and see more alignment with current industries. The One-Stop on its current trajectory will be a good service provider in the future, with more stable management, Rushing said.

“There is no intention to disrupt the One-Stop at this point,” said Rushing. “So the One-Stop should be off the table.”

Had the county gone on a letter writing campaign, Rushing said, “We would have many more letters than you have in your packet,” which contained 62 nonsupport letters. Rushing noted the local chamber of commerce supported the county's proposal.

Rushing said the letter writing campaigns were based on misinformation, including the idea that there was an intention to disrupt the One-Stop and that Napa would take money out of Lake County.

She explained that part of the $5 million that Lake County's CalWorks program receives went unspent because there was no strategic relationship with the One-Stop.

“The Board of Supervisors does not want of be part of the NCCC,” Rushing emphasized.

She referenced a letter, added to the packet late, from Lake County Administrative Officer Kelly Cox, who has worked for the county for more than 30 years and who enthusiastically endorsed incorporating Lake County into the Napa County Workforce Investment Area.

“In reality, Lake County has never been a good fit in NCCC,” Cox wrote. “This was even apparent

when Lake County first joined NCCC, as I specifically recall it was not Lake County's preferred option at that time, either. Lake County has always been more closely aligned, on all levels, with Napa, Sonoma and Mendocino counties than it has been with NCCC's Colusa, Glenn, Yuba and Sutter Counties.”

He said he's personally observed “years of ineffectiveness and unresponsiveness” by the local One-Stop and its predecessor entities, adding that the One-Stop “has suffered from a revolving door syndrome when it comes to its management and administration.”

Cox also was concerned about false statements and innuendos being circulated in the community to shoot down the effort. “The decision on the subject application should be made on what is in the best interests of those whom the program serves, not on the basis of who can generate the most form letters.”

“It's time to move on from the unproductive atmosphere and move forward,” Rushing said.

Asked about the weight given to letters of support or nonsupport, Marquez responded, “They were considered like any other information that we had.”

Huchingson, who served on NCCC's Workforce Investment Board for more than a decade, said she contacted other neighboring counties at the Board of Supervisors' direction and after an extensive process landed on Napa as a good partner.

She said Lake and Napa counties share commonalities, such as winegrape growing and tourism, traits not shared with the other NCCC member counties.

NCCC argues for continuing arrangement

Larry Munger, a Sutter County supervisor and NCCC board chair for the last seven years, said the five counties in NCCC are similar in size and unemployment.

He said there were no problems with Lake and the rest of the consortium when a member of the Board of Supervisors from Lake sat on the NCCC board. Once a supervisor wasn't sitting on that board, “It went south,” he said of the relationship.

NCCC has since changed its bylaws to require a Board of Supervisor member to sit on the board, Munger said. They've also put more money toward assisting program participants.

Rushing said that at the last NCCC board meetings she attended, those bylaws changes hadn't been adopted. She also pointed out that while there was no vote at that NCCC meeting to oppose Lake leaving the consortium, NCCC had since written a letter taking that position. Nancy Crooks, NCCC's interim director, confirmed the group was now formally opposing the move.

Rushing told Lake County News later, “At the two meetings of NCCC I attended, they were trying to change their bylaws with Lake County still a member,without Lake County having a vote in it.”

Huchingson told the committee that the Board of Supervisors' letter supporting the proposal was not included in the EDD's analysis, even though it was submitted with the application.

She wanted to know the weight given to the supervisors' support, noting that the law is silent on the importance of the opinions of such key governing bodies. “Napa County wouldn't be here if it wasn't Lake County pursuing this relationship,” she said.

Crooks told the committee, “NCCC has a lot invested in Lake,” adding, “We feel there has been no sound reason to support his modification.”

She said Napa hasn't said how it would convey better services, and she said the Lake One-Stop is fulfilling many of those services already.

She said the NCCC's member counties are closer in unemployment and median income numbers. Crooks said Napa's unemployment is 10 percent less than Lake's, while Napa's median income is $25,000 higher annually. Napa also has a poverty rate 9 percentage points lower than Lake.

Crooks said Lake County could see its funding reduced if it left NCCC, as 35 percent of the total current funding for the workforce investment area comes from grants for which NCCC has applied. Just this year they received $475,000 in special project funding, and efforts to put more money toward participants in a set aside fund totaled $527,000.

She said that the Lake One-Stop had served more than 14,000 clients between its Clearlake and Lakeport locations this year.

NCCC ran the One-Stop for two years so it could get back on its feet before handing over control to a local nonprofit governing board, Crooks said.

She said the NCCC board's concern was the ultimate agenda, pointing out that Lake County Social Services bid twice to run the services. “Are we after the funding here or are we after the services?”

Crooks said changes would affect the diversity of services the One-Stop offers and its partnerships. She said the meeting was the first time she heard that there was no plan to move the One-Stop.

NCCC wants to work with Lake County's leadership, Crooks said, but they needed a positive, active role, focusing on services not funding.

One-Stop staff has been through turmoil due to the process for selecting service providers. “At this time we would just like to see a decision made,” said Crooks.

Seth DeSimone, executive director of the Lake One-Stop, told the committee, “What's most important to us is our services to clients.”

He added, “We did go out and solicit businesses to make them aware of this.”

DeSimone said they saw the potential for reductions in funding, referencing the 35 percent of funding coming from special grants. “There was no misrepresentation.”

He said the One-Stop has a good working relationship with NCCC. “We have gone through a lot of changes but I think the organization is on track,” he said, adding, “To modify our local workforce area would create disruption.”

Nick Summerfield, board chair of Lake One-Stop, told the committee, “The One-Stop as a board just wants to get this resolved.”

The desire for resolution was a common theme that Doug Sale, the CWIB's acting executive director, said was clear. Sale said state staff would put together a summary of the meeting to take to the state board in May.

Next steps before full state board meeting

Crooks said NCCC was more than happy to accept a Lake County supervisor back on its board.

“But I’m not hearing that Lake County wants to do that,” said Sale, noting that there doesn't appear to be a great number of alternatives.

He said the Board of Supervisors' stance needs to be taken into account. “They seemed very, very clear on their intention to partner with another entity, specifically, in this case, Napa.”

Adam Peck, a committee member who also serves as executive director of the Tulare County Workforce Investment Board, agreed that the matter should go before the state, with the larger issue of what to do when JPAs break up also needing to be addressed.

He said they needed to look to local elected officials, who have to represent residents and will be held accountable in a way no one else can be.

Summerfield questioned if there was enough time to analyze how to move forward after a county withdraws from a JPA. But delay could prove a problem; Marquez said that, based on how funding allotments work out, the state may have to wait on making all allotments until this decision is made.

Rushing was asked if Lake County would still be committed to moving forward with its proposed arrangements with Napa if the county does stand to lose a “significant amount” of funding based on further analysis. She said she would need to discuss it with the entire board, and if it were significant it would need to be reviewed.

“But we don't want to be a part of NCCC,” she emphasized.

Marquez replied, “We don't think that you would see a significant difference in allocations,” which Rushing said was the county's understanding, and that there should be no substantial funding difference, because the funding goes with the county.

Rushing said after the meeting that she agreed completely with the committee's consensus that the Board of Supervisors' will – as it represents the community – should carry the most weight, and that the board also is the point of accountability for the results of the decision.

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