During the meeting, Mayor Judy Thein offered an explanation of the city's current financial condition that put a great deal of blame on past city leaders and which credited current City Administrator Dale Neiman with, in Thein's view, finally putting the city on the right path.

The matter came at the end of a four hour and 15 minute meeting, the first several hours of which had largely been devoted to code enforcement matters.

Neiman's report on the midyear budget was a bleak one, asking the council for direction on looking into possible bankruptcy measures should the city's revenues fall any further.

“We have a very serious cash flow problem with the city's operational funds,” Neiman said.

The operational funds could have negative balances of $429,000 by the end of the fiscal year, which will come June 30, he said.

Special revenue funds can't be used for the city's operational expenses, because Neiman said it will lead the city into a hole from which it can't dig out.

He said the city has made many difficult decisions over the past three years, including eliminating 30 percent of its staff positions, and eliminating or reducing services.

That means that not much, if anything, now is left to cut. Neiman said they could cut his position, shut down park restrooms and take other last-ditch measures to eliminate expenses.

“In my professional opinion, if we can't generate additional revenues, I think the future of the city looks pretty grim,” he said.

He offered a rundown of city services that was the same as he offered during a Jan. 7 meeting on the proposed Lowe's shopping center project at the city's Pearce Field airport property on Highway 53.

The city has gone from five to six police officers per patrol shift several years ago to one to two today, while at the same time experiencing a 15-percent call volume increase to the city's police department, he said.

A pavement management study estimated that over the next five years 62 percent of the city's residential streets with some form of paving will revert to dirt, and Neiman said an increased amount of flooding can be expected because of an aging and undersized city sewer and drainage system.

Neiman said the city has two major problems – lack of revenue and operational costs higher than other cities of similar size.

He asked for council direction on how to proceed, including looking at the possibility of filing for bankruptcy.

“I don't know much, if anything, about bankruptcy, but we should evaluate it,” Neiman said.

He also suggested the city consider what portions of its jurisdiction that could be detached and given back to the county in order to reduce service costs.

Other cost-cutting measures Neiman proposed included freezing vacant positions whenever possible and putting off the payment of whatever bills they can. A $50,000 grant the police department received, which was going to be used for equipment, now is proposed to be used for salaries.

Neiman said when he started working on the midyear budget review Feb. 2, he went home for lunch and his wife told him that his face was white.

Thein, herself a former city employee of 21 years in the finance department, said many people are asking how the city got into its current situation, and she wanted to offer a brief summary of the city's history, beginning with incorporation in 1980.

She said the city had faced a similar fiscal crisis in 1984, and said poor management led to numerous layoffs.

They had several more changes in city administration, but there was never any clear direction “out of the woods,” Thein explained.

The city seemed to work more or less. “We just got by,” she said.

In the past, city administrators didn't seem to understand redevelopment, which didn't do what it was meant to – bring the city financial prosperity, Thein said.

She said the city's troubles deepened in the late 1990s under new city management, which she said concealed the city's true situation. Redevelopment funds were used to pay general fund expenses, and those redevelopment housing funds had to be repaid.

That matter was a huge blow to redevelopment, said Thein.

“We were juggling. That's all we were doing,” she said, with the city robbing Peter to pay Paul. “We seemed to be spinning out of control and we were living a lie.”

She said the city's management team lacked experience and education at that time, but a stable economy disguised the problems.

Another change in city administration occurred in 2005, and the city brought in an interim administrator, Thein recounted.

Thein didn't name the officials, but at this point she was referring to David Lane, who left the city in 2005, and interim City Administrator Robert Van Nort, who was brought in to succeed him.

“He quickly realized we were in deep trouble,” she said of Van Nort, noting that he saw the city's revenues were stagnant and the expenses out of control.

Another city administrator was hired – again not named by Thein, but which was Kathy Kivley based on the chronology – and after Kivley left Van Nort returned.

Neiman, who was hired in 2007, has the experience and knowledge to lead the city, Thein said.

When Neiman arrived, the city held a workshop open to the public to help chart the city's future, but she said no one from the public attended. Part of what came out of that workshop was to develop the airport property.

Now the city's administration is attempting to pick up the remnants and move forward, Thein said.

“We as a community need to build together,” she said, asking for members of the public to come forward and offer suggestions.

City resident Estella Creel said Thein's words were a “nice and touching speech,” but she criticized the city's shopping center plan, which she said is a failure.

Thein asked Creel why she had changed her mind about the plan, which she said Creel had supported at one time. She read from an article quoting Creel – who ran for city council in 2008 – supporting bringing in big box stores like Lowe's.

Creel said she wasn't against big boxes and noted that Home Depot – once considered a possibility to come into the airport development as the anchor tenant – has cheaper prices than Lowe's. She also said the city has enough fast food restaurants.

Walter Cole, a member of the Konocti County Water District Board, asked how they could expect to bring a multibillion dollar company like Lowe's to Lake County, with a population of 65,000, and expect it to be profitable and draw from surrounding communities.

“I suspect there's some pie in the sky that got in the way here, guys,” said Cole, who has lived in the county for 50 years. “We've got to work within the reality of this county.”

Another community member, Mike Dunlap, said they need to define what the community wants from its government. He said government is supposed to provide some services people can't get on their own, such as streets, lighting and stormwater facilities.

He suggested community members may have to start going out and cleaning up parks themselves.

If the city wants more tourism, he said they need to give people a reason to come there, including good restaurants and facilities. Dunlap said the city has no public marina or dock facilities currently.

Councilman Roy Simons disagreed with Dunlap that it was the city's responsibility to provide streets. Dunlap countered that the city can require infrastructure be put in place for development.

Neiman said streets in other areas have been paid for through assessment districts. Currently the city is maintaining 115 miles of streets with four people. “It's impossible. It will never happen.”

Simons said there was a time when Clearlake was alive, but local business didn't keep up with competition. He said the only available industry for Clearlake is tourism, and Dunlap agreed.

Dorothy Myers said her family moved to the Clearlake area in the 1950s, and when the county had jurisdiction over the area she said it was in great condition.

The airport should have been made into an industrial park where jobs could have been created, said Myers, who suggested Clearlake wasn't ready to be a city.

Rick Mayo, an area resident of almost 32 years, said the city has “champagne dreams but is working on a beer pocketbook.”

Mayo, who said he didn't know how much money it would take to make the city salvageable, adding that the community has been through nothing but pain since incorporation.

He suggested the council should give up his health benefits and Neiman could work for less money.

The council told Neiman to proceed with looking at the bankruptcy option.

Councilman Curt Giambruno suggested they should pursue all possible avenues, not just bankruptcy or detaching portions of the city.

“The economy is taking a dump and we're right in the middle of it,” Giambruno said.

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The meeting will begin at 9 a.m. Tuesday in the Board of Supervisors chambers at the Lake County Courthouse, 255 N. Forbes St., Lakeport. TV8 will broadcast the meeting live.

Supervisor Rob Brown is asking the board to consider amending personnel rules to place a limit on the length of time an employee can be placed on paid administrative leave.

“It is my understanding that there have been situations where employees have been on paid administrative leave for several months,” Brown stated in his memorandum to the board.

Brown noted in his memo that the personnel rules currently contain no provision for imposing a time limit on how long a department head may place an employee on paid administrative leave. “I believe such a limit should be established,” he added.

“Placing an employee on paid administrative leave for several months is unfair to everyone involved, including the taxpayers,” Brown wrote. “Without a time limit there is little incentive to bring these situations to a speedy resolution.”

Brown said he was asking Human Resources Director Kathy Ferguson for a recommendation on an appropriate time limit.

The county's current policy for leave with pay states: “Upon the determination by a department head or his/her designee that an employee should be removed from duty pending proposed disciplinary action, such employee may be placed on leave with pay for such purposes. Such leave shall extend for the actual period necessary to complete an investigation into the charges and/or complete the pre-disciplinary process.”

Ferguson told Lake County News that there are no statistics for how many employees are placed on leave without pay or how much money is spent on such leave because it is not currently recorded under a unique payroll code.

In other board business set for Tuesday, supervisors will discuss a proposed ordinance authorizing payment of a one-time stipend to members of the Board of Supervisors. The item is not timed.

The stipend actually is a refund because the county's health insurance carriers did not charge the county for health insurance in November and December of last year. In late 2009, the board voted to refund $700 per person to qualified full-time employees.

The board also will hold a closed session to discuss labor negotiations.

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.

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).

9:15 a.m.: Presentation on the publication of tick-borne illness.

9:30 a.m.: Presentation on the Lake County 2030 Regional Blueprint Planning Program.

9:45 a.m.: Consideration of request from Gary Condray for waiver of construction traffic road fee in the amount of $15 for project located at 14640 Highway 29, Lower Lake.

10 a.m.: Presentation of proclamation designating the week of Feb. 16-22 as National Engineers Week in Lake County.

10:05 a.m.: Presentation of employee service awards.

10:30 a.m.: Closed session – meeting with Lake County Grand Jury.

11:30 a.m.: Assessment appeal hearing – Jakel Englebert, Application No. 06-2009 for property located at 10030 Hagemann Lane, Upper Lake.

Nontimed items:

– Supervisors' weekly calender, travel and reports.

– Consideration of proposed resolution revising position allocation for Budget Unit 8695 – Special Districts Administration and proposed resolution amending the fiscal year 2009-10 Final Budget for Budget Unit 2602 – Building and Safety and Budget Unit 8695 – Special Districts Administration.

– Second reading of an ordinance establishing a fine and fee schedule for the county library (revisions include fines for overdue materials, fees for interlibrary loans, fees for items lost or returned irreparable, fines for accounts referred to collection services, refunds for lost items returned, maximum fine debt allowed and circumstances allowing fines to be waived). Advanced from Feb. 9.

– Discussion/consideration of request for authorization for Mental Health staff (Marisol Valdez) to provide county transportation to four Friday Night members to Eureka on Feb. 26 and 27 to attend the Eureka California for Youth Leadership training.

– Discussion/consideration of award of Bid No. 10-16 to Holder Ford in the amount of $32,222.79 for the purchase of one 2011 full size one-ton, four-wheel-drive, single rear wheel, regular cab long bed pickup for Public Services' Parks and Recreation Division.

Consent agenda

– Approve minutes of the Board of Supervisors meeting held on Feb. 9, 2010.

– Adopt proclamation designating the week of Feb. 16-22, 2010, as National Engineers' Week in Lake County.

– Appoint incumbent William Sapeta to the Emergency Medical Care Committee for a term expiring on Jan. 1, 2011.

– Appoint Thomas Nixon to the Countywide Parks and Recreation Advisory Board (Supervisorial District 5 representative) for a term expiring on Jan. 1, 2011.

– Adopt Resolution No. ___ declaring county property surplus to the needs of the county and authorizing purchasing agent to sell said property (one 1985 Bowles trailer, one 1987 Westco trailer and one 1991 Westco trailer).

– Waive the 900 hour limit for extra help bailiffs Steve Jones, Mike Wood, James Everhart, Robert Piveronas and David Jones for the Lake County Sheriff's Office.

– Waive the 900 hour limit for extra help employees Wes Frey, Bob Jordan, Gerry Mills and Willie Sapeta (to a maximum of 960 hours) for the Lake County Sheriff's Office.

– Waive the 900 hour limit for extra help employees Jim Campbell, Dane Hayward and Lloyd Wells for the Lake County Sheriff's Office.

– Waive the 900 hour limit for extra help employee Frank Ley (for an additional 600 hours) for the Lake County Air Quality Management District.

– Approve easement deed and direct clerk to certify for recordation APN 014-160-01 – Billy Jackson and Diana Jackson, consented and agreed to by lien holder First Bank and Trust; and approve easement deed and direct clerk to certify for recordation APN 014-160-09 – David Scott and Emily Scott, consented and agreed to by lien holder Mortgage Electronic Registration Systems Inc. for construction of a sewer line for Twin Pine Casino in Middletown.

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

Staff reports for the meeting can be downloaded at www.cityoflakeport.com/departments/docs.aspx?deptID=88&catID=102 .

At the council's direction, City Attorney Steve Brookes drafted the local vendor preference policy, which his report to the council explains, “can result in more awards for goods and services to local firms, keep city dollars within Lake County, and also generate sales tax from vendors within the City limits.”

The draft policy offers local vendors a 10-percent preference in the selection process, and directs city personnel “to use their best efforts to purchase goods and supplies from local vendors whenever possible and consistent with the terms of this policy.”

To be considered “local,” vendors must conduct business in an office with a physical location within the city of Lakeport; hold a valid, city-issued business license; and conduct business in such a prescribed manner in the city for at least 12 months before being able to receive the preference, according to the policy.

As for contracts for professional services and requests for proposals, the policy calls for the city awarding contracts to “the most qualified responsible and responsive proposer, after considering

the demonstrated competence and professional qualifications of all proposers.”

In such a case, cost will be considered but the award doesn't need to go to the lowest bidder, the document states. “Unless otherwise specified by law 5 additional points shall be awarded based

to the proposer who submits the lowest estimated project cost and two additional points for

any local vendor” as defined in the policy.

The draft document also notes that the policy doesn't apply to contracts where state law or other regulations preclude local preference, or to public works construction projects.

In other items set for Tuesday, the council will convene jointly as the Lakeport Redevelopment Agency, with members set to discuss acquiring vacant residential properties for Habitat for Humanity.

Under business items, the council will consider adopting Resolution No. 2383 (2010), which supports the findings of the California Statewide Local Streets and Roads Needs Assessment Project, and Police Chief Kevin Burke will make a presentation on the new Crime Map Reporting System.

Also on the agenda is a discussion about, and possible adoption of, Resolution No. 2384 (2010) approving the application for statewide park program grant funds.

The council also will hold a closed session for continued discussions regarding the selection of a new city manager.

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Community members went before the board late last year to urge the board to go forward with the clock, which they said would help tie together the vast improvements that a Main Street redevelopment project has brought to Upper Lake.

At that time, the board voted to require the town to raise 25 percent of the new clock's cost, which is estimated to cost about $16,000, as Lake County News has reported.

District 3 Supervisors Denise Rushing said the Upper Lake Women's Protective Club stepped up to lead the effort to raise the $4,000.

Club member Shalean Smith told the board that the group was nervous and “a little bit worried” when they took up the fundraising task Dec. 2.

However, they found themselves supported by enormous generosity not just from within Upper Lake but from around the county, she said.

Despite the fact that donating was a challenge for some people in these hard times, the result was that they have raised more than $5,000, well beyond their goal, Smith said.

“It was a very positive thing,” said Smith. “It was great for the community and for everyone to take ownership of the town clock.”

Rushing thanked the Women's Protective Club and said she found it “absolutely amazing” that the group – who put the original clock in place in 1914 – stepped up once again. She gave Smith a lot of credit for the project's success.

County Administrative Officer Kelly Cox said the county is working on the clock selection process.

“We've been looking at different companies and trying to get the best price we can,” said Cox, adding that they want to solicit sealed bids because they believe that will assist with good pricing.

He said Deputy Redevelopment Director Eric Seely has done a lot of research on the clock. “It is costly,” said Cox, noting that in addition to the base price, there will be a significant amount required for shipping.

As part of the fundraising effort, Rushing said one citizen turned Upper Lake's Main Street into a toll road one day.

She was referring to Joe Fernandez, who raised more than $1,100 on Jan. 13 (See a story about Fernandez's effort here, Community rallies to raise funds for Upper Lake clock ).

“People were giving money and didn't even know why,” Smith said, which elicited laughter in the board chamber.

“We might want to borrow him for some other community projects,” Cox quipped.

Supervisor Jeff Smith said a project like this “seems to bring a town closer together.”

He asked if they had any luck in trying to find out whatever happened to the old town clock.

Shalean Smith said town members followed several leads, and Bernie Butcher, owner of the Tallman Hotel and Blue Wing Saloon & Cafe – who she said is a bit of a historian himself – tried tracking it down, but had no luck.

“Quite honestly we're kind of glad,” she said.

Rushing explained that many of the Women's Protective Club members remembered how extensively the old clock had been vandalized.

Cox said it will be important to find a clock with a proven mechanism so it doesn't require constant maintenance. He said they have had good luck with the town clock in courthouse square in Lakeport, and they want to find one that will last for decades.

Supervisor Jim Comstock said he originally thought that requiring the town to raise 25 percent was excessive and he had supported a 10-percent contribution. He congratulated the community on its efforts.

Board Chair Anthony Farrington said he had been optimistic that the town could do it.

“We will honor our end and keep that money appropriated,” he said.

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summarize the characterization of a newly recognized infection in humans that is associated with tick bites.

The condition, which was characterized primarily by a skin ulcer, often with a dark scab, was first noted in Lake County by local internist, Dr. Marc Shapiro, several years ago, according to a report from the Lake County Department of Health Services and Lake County Vector Control.

State public health and tick experts suspected that this condition might be the result of a particular species (364D) of a microorganism known as a rickettsia.

A related species of rickettsia is known to cause Rocky Mountain Spotted Fever, a tick-borne illness that is rare in California.

A patient with a skin ulcer in August 2008 prompted the initiation of a public health investigation involving Lake County Public Health, California Department of Public Health, the federal Centers for Disease Control and Prevention, and the Lake County Vector Control District.

The resulting research and investigation has resulted in the first scientific confirmation of human disease associated with the 364D species of the spotted fever group of rickettsiae.

A summary of this investigation and findings to date appeared in the February issue of “Clinical Infectious Diseases.”

“This does not represent a new health threat, but it will help local doctors more accurately and quickly diagnose and treat an infection that has probably been around for many years,” said Lake County Health Officer Dr. Karen Tait.

Although the infection has been described to appear as an inflamed appearing skin ulcer at the probable site of a tick bite, the full range of symptoms and signs of infection that might occur have yet to be fully described. Additional research in this area will continue.

In addition, the Lake County Vector Control District is continuing to collect ticks for testing and to gain a better understanding of the environmental conditions that affect the ticks that transmit Rickettsia 364D.

Infection from the 364D organism is treatable with antibiotics, but health officials encourage everyone to protect themselves from tick bites by taking a few precautions:

• Wear light-colored clothing to make it easier to see ticks;

• Wear long pants and long-sleeved shirts, and tuck shirts into pants, and pantlegs into socks to make it harder for ticks to reach your skin;

• Apply a tick repellant (always read and follow label directions);

• Check your body for ticks after working or playing outdoors; have someone else check your back, neck, and head or other places that you can't see yourself.

• Remove ticks promptly by grasping them as close to the skin as possible with tweezers and gently pulling. Save the tick in a Ziploc bag or other tightly sealed container and bring it to Lake County Vector Control District for identification and possible testing.

• Talk with your veterinarian about tick protection for your pets.

More information on the prevention of tick-borne diseases can be found at www.cdc.gov/Features/StopTicks/ .

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This young pinto stallion was impounded by Lake County Animal Care and Control officials on Friday, February 5, 2010. The horse was significantly underweight and had a serious injury to its genitals, according to officials. The stallion's former owner is an Animal Care and Control staffer, who sources close to the investigation confirmed is Officer Terrie Flynn. Photo by Elizabeth Larson.

As part of the case a horse with a serious injury that also was significantly underweight was relinquished to Animal Care and Control last week, Deputy Director Bill Davidson said Friday.

In addition, the care of another five horses, all of which also are underweight, is being investigated, Davidson said. However, those animals have not been impounded.

Davidson would only say that the person at the center of the case was a staff member. However, sources close to the investigation identified the person as Officer Terrie Flynn.

Flynn has, in her capacity as an animal control officer, worked on horse neglect and abuse cases around the county, as Lake County News has reported.

Last April, the Board of Supervisors voted to send Flynn to Reno for the National Cruelty Investigators School Level 1, according to county documents.

The current case led Animal Care and Control administration to consult with County Counsel Anita Grant, Davidson said.

“The conclusion of the whole discussion was that this should be handled by an outside agency,” he said.

Grant said Mendocino County Animal Control has been asked to come in and take over the investigation.

“The department head in this case is out of the mix,” Grant said of Animal Care and Control Director Denise Johnson. “She has voluntarily removed herself.”

In addition to being Flynn's boss, Johnson also is Flynn's mother-in-law.

Davidson said Senior Animal Control Officer George Hodgson from Mendocino County is due to meet with Lake County officials on Tuesday to take over the investigation.

Flynn has not been placed on administrative leave and was at work on Friday. She was paged to go to Johnson's office while a Lake County News reporter was on the scene to photograph the injured horse whose ownership she had signed over to the agency.

A determination about administrative leave likely would come at the end of the investigation, Grant said.

Such administrative leave decisions usually are made within a department, but in this case Grant suggested that the decision would be turned over to another official, possibly in the Human Resources Department or the County Administrative Office.

While Flynn was out of town last week, a report came in about the condition of her six horses.

A small pinto stallion, estimated to be about 4 years old, was impounded by animal control officers last Friday, Feb. 5, Davidson said.

The horse was “significantly underweight,” said Davidson, with a body conditioning score of two – meaning very thin and emaciated – out of a possible nine, with the highest score denoting an overweight animal.

However, Davidson said, “The main issue surrounding the impoundment was due to the injury.”

The horse had suffered an injury to its genitals, likely due to being caught in a fence, Davidson said.

The injury required immediate health care, which Flynn paid for initially. The horse later was signed over due to the owner – who Davidson again didn't identify as Flynn – realizing they were in “over their head” because of the injury, he said.

On Friday the stallion, being kept in a paddock behind the Animal Care and Control building, was active and his wound appeared to be healing. Davidson said the wound had improved since the horse was taken into care.

The animal also appeared to have put on some weight, although his ribs were still very visible through his thick winter coat.

The other five horses in the case are all “generally underweight but they're not significantly so,” Davidson said.

On Saturday, the pinto stallion is due to be picked up by a Modesto-based rescue group that has agreed to find the horse a new home, he said.

As for possible prosecution in the case, Davidson said, “We're going to wait and see what Officer Hodgson finds.”

Grant said the county is hoping for a “good and fair view” of the case by bringing in an independent, outside agency to conduct the investigation.

“The public deserves to be assured that people in animal control aren't going to be treated any different than members of the public,” she said.

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