The retiree benefit discussion, which began earlier this summer, was to have gone back to the council Tuesday night. The council is considering having retirees pay a surcharge assigned by the city's insurance carrier, which the city has been picking up since it was instituted a few years ago.

However, with Councilman Bob Rumfelt absent, Tom Engstrom – the city's retired police chief who was representing the group of close to 20 retirees and spouses who attended the meeting – asked if the council would postpone taking up the item until all of its members were present.

With Rumfelt not scheduled to return until after the next meeting, Kevin Burke, the city's police chief and interim city manager, proposed bringing the discussion back at the Oct. 20 meeting. The council agreed to the request.

Engstrom thanked Burke and Finance Director Janet Tavernier for their work to find solutions to the retiree benefits issue, saying they've gone out of their way to help.

One of the council's main actions of the evening – sitting as the redevelopment agency board – was to terminate a tentative housing loan agreement with developer Bruce Shimizu of Clearwater Homes.

Last October, the council had given city staff direction to negotiate an agreement with Shimizu for financial participation in the Avalon Co-Housing Project, a low-income housing project Shimizu proposed to build at 1240 Berry St.

In January, Shimizu returned to the council, seeking a $713,000 loan to fund the acquisition of the 2.6-acre property, which he already had purchased for $382,598. At that time, Shimizu was in arrears by $15,000 on a $275,000 note with Wells Fargo, and the council was reluctant to make a loan of any size on the property.

The redevelopment agency did decide to make a $173,200 pre-development loan to Avalon Cottages LLC in April.

Since then, Shimizu has since lost the land to foreclosure, which means the project is defunct, said Redevelopment Director Richard Knoll.

Knoll told the council that no money was ever actually loaned to Shimizu, although there were attorneys fees. Knoll didn't state the fees' amount.

Councilman Roy Parmentier moved to terminate the agreement, with Council member Suzanne Lyons seconding and the council approving the motion in a 4-0 vote.

Also on Tuesday, Lyons asked the council to consider sending a letter to Gov. Arnold Schwarzenegger, asking him to sign AB 74 by Assemblyman Wes Chesbro.

The bill authorizes state funding for the Middle Creek Restoration Project, which proposes to restore close to 1,400 acres of wetlands on Clear Lake's Northshore.

Mayor Ron Bertsch said he wanted to have a chance to read the bill before sitting down with Burke to work on the letter.

In other council action, council members approved an application for a $35,000 Community Development Block Grant planning and technical assistance grant for a neighborhood improvement study; awarded a contract for the Martin and S. Forbes Street Sidewalk Improvement Project to Epidendio Construction, which bid $36,946; and approved the civil engineering plans and specifications for the pedestrian improvement project at 562 and 566 S. Main St.

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Beginning in late August an estimated 180 letters went out to individuals who own lots in the paper subdivisions above Nice and Lucerne, according to county officials.

The letter was sent to property owners from the “North Shore Land Trust,” and included the APN numbers and addresses of the recipients' property.

County Administrative Officer Kelly Cox and other department heads are concerned that the letter appeared to link the North Shore Land Trust with the county government.

However, Richard Jones, one of the owners of the business – which he said is a privately held land trust, not a nonprofit – said as soon as they became aware of the concerns they immediately sent out a new letter clarifying the situation.

It was the property owners receiving the letter who first notified the county.

Eric Seely, the county's deputy redevelopment director, said he was contacted a few weeks ago by a Bay Area resident who had received the initial letter.

Cox said the property owners who have contacted the county have been very upset, with one man telling officials that he wanted to see prosecution result from the mailings.

The letter informs recipients that the county is in the process of rezoning the area's Northshore and has “already taken steps to restrict access to these 'paper lots' in the hills” of the Northshore.

The letter's second paragraph states, “You may be in receipt of official correspondence stating these fact with an offer from the County of Lake to remove these lots from the property tax role. This releases you, the property owner from the liability of paying future taxes on unbuildable land.”

It then goes on to instruct the property owner how to sign over their land.

The final draft of the county's Shoreline Communities Area Plan, which goes before the Board of Supervisors at 1:30 p.m. Tuesday for final consideration, does create new zoning and requirements for such properties, Community Development Director Rick Coel told the Lake County Planning Commission last month. Officials also have noted that the county is purchasing such lots that go into tax default sales.

Other county department heads also received calls, said Seely, which resulted in a meeting to discuss their concerns and how to handle the situation.

Lore Schneider with the county's administrative office is handling the inquiries from property owners about the letter. Schneider said she's received eight calls over the past two weeks from people who own paper lots, particularly in Lucerne.

Assessor-Recorder Doug Wacker was make aware of the situation so he could keep an eye out for possible title transfers, said Seely.

“We put the whole staff on alert,” said Jim Campbell, the county's deputy county assessor.

To date there have been no such deed transfers, Campbell said.

District Attorney Jon Hopkins said his office looked into the matter, and he sent out an investigator to speak with the company.

“The letter, in my opinion, was misleading,” he said.

Hopkins, who said one of the company's owners – who he didn't specify – was in real estate, explained that the company agreed and volunteered to send out new letters, which stated definitively that they were not representing, or associated with, Lake County.

A copy of that letter was shown to the District Attorney's Office before it was mailed, he said.

The North Shore Land Trust filed a fictitious business name statement last month, noting on its application to the County Clerk's Office that it began to conduct business under that name on Aug. 20.

The business' registered owners are Jones, a Hidden Valley Lake resident, and Dallas Watson of Middletown.

Part of the confusion and concern appears to arise from the business name. While Jones said it's a privately held land trust – and added that there are many of them – land trusts are typically defined as nonprofits that hold land in an effort to preserve them against development, according to the Land Trust Alliance.

That's the same definition given by the Land Trust Accreditation Commission, which accredits and monitors such groups for compliance.

Jones declined to elaborate on plans for any properties that he and Watson might acquire from the mailer.

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Without a full council present – Councilman Roy Parmentier was not at the meeting – the council approved some funding requests but reached tie votes on others, essentially stopping them in their tracks.

Specifically, the council – sitting as the Lakeport Redevelopment Agency Board of Directors – was asked at the Sept. 1 meeting to consider revised guidelines for a business stabilization grant program which Redevelopment Director Richard Knoll had taken to the council earlier this year and which had been approved.

They also were asked to approve funding for the Lakeport Main Street Association and Mt. Konocti Facilitation.

Regarding the stabilization grant program, the loans are meant to help businesses with capital and other expenses in cases where they don't have additional funding options, which Knoll previously told the council has become an issue in the current tight credit market.

Knoll brought the guidelines back to the council with some minor revisions, including making startup businesses a lower funding priority than businesses that already are established.

He said the guidelines called for a $75,000 maximum loan, with $30,000 being an average loan amount. At that level, with the program's funding, they should be able to do about six loans, said Knoll, adding that they have had an inquiry from a local business about a $75,000 loan.

“That gives you an idea of what we're already dealing with,” he told the council.

Knoll also asked for approval to appoint a council member to the loan committee and approve an agreement with Community Development Services to help administer the program.

There were concerns from some council members about the size of the loans, but Council member Suzanne Lyons said loan amounts need to vary according to business sizes, noting a $25,000 loan that is adequate for one company might not work for another. She added that the amounts have to be large enough to do some good.

Mayor Ron Bertsch asked about giving funding more than once to the same business. Knoll said it's rare, but out of the 40 loans they've done under a current business loan program, they've only given two or three loans out to a business that previously had borrowed.

Lyons had concern with the payment terms, which allow for deferring payment for a reasonable period due to a business' income, projections and other factors. She said that was too open.

“That's why we need you on the committee,” said Bertsch.

Knoll said the terms would be spelled out in the loan agreements, with repayment required within five to seven years.

“The hope is that we would help as many businesses as possible,” said Knoll.

The council chose to reduce the maximum loan amount from $75,000 to $50,000. In addition, Bertsch suggested adding a safeguard that prevents a business from borrowing from the program again until all other loans are paid, which Knoll agreed to do.

Councilman Bob Rumfelt moved to approve the guidelines, which the council approved 3-1, with Councilman Jim Irwin voting no.

When the Lakeport Main Street Association requested an annual payment of $15,000 to cover operational expenses, the council found itself more divided.

Knoll talked about the group's work on the city's facade improvement program and its focus on the redevelopment area.

Leslie Firth, the group's president, said they've worked to put together a cohesive group of business owners, and are putting their efforts toward targeting and promoting Lakeport and its businesses.

Jan Bruns, the association's executive director, noted, “There's a lot of things that we want to do yet.”

She pointed to the group's work on getting flower baskets for the downtown lamp posts – which she and her husband, former Councilman Buzz Bruns started after the death of their son – as well as banners, park benches, trash receptacles and a new machine in the park that offers bags for owners to clean up after their dogs.

Melissa Fulton, the Lake County Chamber chief executive officer and a Lakeport Main Street Association board member, said everyone knows money is tight, but she urged the council to make the request.

“This association has done so much for the city of Lakeport,” Fulton said.

She told Irwin that he's getting his money back more than he realizes through the work of the association. Fulton added that the association's recent “Taste of Lakeport” event helped generate significant sales tax for the city.

Supervisor Anthony Farrington, whose district includes Lakeport, also spoke in support of the group, noting that the Kelseyville Business Association is pushing projects such as a proposed Merritt Road location for a new Mendocino College center, which had been talked about in Lakeport.

Rumfelt moved to approve the full $15,000 amount, but the yes votes he and Bertsch cast tied with no votes from Irwin and Lyons.

Irwin then make a proposal to give the group $1,000 – in addition to the $9,000 included in the new fiscal year's redevelopment budget to pay the services Bruns is providing the agency – for a total of $10,000, which he said was in keeping with historical amounts. “I don't think that's going to keep the plants alive,” Bertsch said, regarding the flower baskets.

That motion died for lack of a second.

Rumfelt made another motion, suggesting $10,000, in addition to the $9,000 in the budget. Lyons seconded, and the motion passed 3-1, with Irwin voting no.

The last request was from Mt. Konocti Facilitation, which offers free support for local businesses. Knoll, who recommended $2,500 in funding.

Firth, also a member of the group, said they're in desperate need of buy-in from the local community in order to quality for grants, and that can be established through the small grant they requested.

Rumfelt moved to approve it, with Bertsch seconding, but both Irwin and Lyons voted no.

Pointing to the two tie votes, a frustrated Rumfelt said the two groups had shown their importance to the health of the community, and he suggested that the council should wait to discuss such matters until all members are present.

“I know things are tight but if we have money to support them, we should do it,” he said.

Lyons replied that, by Rumfelt's reasoning, they shouldn't vote for anything unless there's a full council.

Knoll asked if they should bring back the matter. Bertsch said he didn't want to start a precedent of constantly revisiting issues in order to get a different vote.

Knoll replied that the tie resulted in no decision being made, so it can be brought back and Kevin Burke, the city's interim city manager and police chief, agreed. Bertsch gave staff direction to bring it back.

Speaking specifically to Irwin and Lyons, Fulton said she found their votes “unacceptable.”

“I find it very hard to understand when the money is there and the need is there and the service has been there to the community how a no vote can be given,” she said.

Fulton suggested their votes were jeopardizing the community's businesses and possibly taking away desperately needed assistance.

She said Mt. Konocti Facilitation is pursuing a $100,000 grant, but if local governments are unwilling to pledge financial support, the group can't expect financial institutions to support them.

Fulton said she couldn't understand why they would turn down local businesses. “And they are you businesses. I find it totally unacceptable that you have done this. And I'm sorry that you have done it.”

Volunteers with the group did the work for 18 months with no pay whatsoever for their time or mileage. “And now you turn them down for $2,500,” she said.

Lyons told Lake County News later that her vote wasn't meant as a personal judgment about Mt. Konocti Facilitation. But she said even though it appears that the city is financially OK, it's still early in the year.

Lyons said Mt. Konocti Facilitation has made good presentations to the council, and it wasn't for a lack of confidence in them.

She said that night they already had approved $200,000 for business loans and another $19,000 for the Lakeport Main Street Association.

While the city is trying increasingly to help because it's such a struggle for businesses now, Lyons added, “You can't put money into every biz venture in town. I don't think that's legitimately what the city does.”

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The board will consider the urgency ordinance at 3:30 p.m. Tuesday during its regularly scheduled meeting at the Lake County Courthouse, 255 N. Forbes St., Lakeport.

If the board passes the six-page interim urgency ordinance, it would go into effect immediately and prevent collectives and dispensaries from opening for 45 days, which should give county staff time to finish its draft zoning proposal.

County Counsel Anita Grant called it a “freeze frame.”

She said if the board wanted to extend the urgency ordinance, it would need to hold a public hearing.

On April 21, the county issued notices of violation to six medical marijuana dispensaries and cooperatives because their usage isn't specifically outlined in the county's zoning ordinance and is therefore not allowed, as Lake County News has reported.

That action was taken the same day as the Board of Supervisors held a preliminary discussion on amendments to the county zoning ordinance, with dispensary zoning included in that discussion. The board decided to stay the enforcement action against those dispensaries.

That led to a May discussion about including dispensaries and collectives in the county's zoning, with Community Development Department staff continuing to work on a draft, said Rick Coel, the department's director.

Coel said his staff will have a draft zoning ordinance amendment ready in four to six weeks.

However, since those initial discussions in the spring, several new dispensaries and collectives have scrambled to open, according to Supervisor Rob Brown.

Brown told fellow board members during an August discussion on marijuana zoning rules that a dispensary opening up in Cobb was a concern for community members there.

Coel estimated that about four or five new ones have opened around the county in the last few months, in communities including Nice, Lucerne and Middletown.

Another dispensary is reportedly reopening in the Clear Lake Riviera, to the consternation of community members there, said Bob Plank, a director of the Clear Lake Riviera Community Association.

Coel emphasized that the zoning ordinance, as it currently stands, doesn't allow for collectives or dispensaries, although the Board of Supervisors put a halt to taking any action against the dispensaries already operating in April, at the time the notices of violation were issued.

“The folks that are opening these businesses are under the impression that if they get these in now they can get them grandfathered in,” he said.

In an effort to temporarily halt the growing number of dispensaries – whose zoning issues haven't been fully considered yet in the draft zoning amendment, said Coel – county officials began drafting the temporary moratorium last Wednesday, Grant said.

Taking part in getting the effort going were Brown, Grant, Coel, retired Supervisor Ed Robey and his successor, Jim Comstock.

Brown said the county is putting people on notice that if they open dispensaries or collectives now, they'll be closed down.

“Everybody needs to take a break until we get this ordinance done,” he said.

Dale Gieringer, PhD, coordinator for California NORML, a marijuana advocacy group, said there have been countless moratoriums enacted around the state regarding dispensaries.

He said moratoriums have been a standard preliminary procedure for communities preparing to enact dispensary regulations. Some of those communities include Oakland, San Francisco, Los Angeles, Berkeley and West Hollywood. For communities that have no dispensaries, they are a convenient way of excluding them entirely at a later date, he added.

Lower Lake Attorney Ron Green, who – along with Robey – has been offering his expertise in medical marijuana issues to county staff as its zoning effort has been under way, said that he and Robey favor the general moratorium concept and advised the board to pass one.

“A moratorium on new medical marijuana dispensaries would allow the Board of Supervisors time to come up with reasonable zoning and other regulations without feeling pressured by the proliferation of dispensaries to pass something that hasn't been well thought out and discussed publicly in detail,” he said.

However, Green cautioned that, while he supports the moratorium in principle, he has significant problems with some of the language in the proposed moratorium ordinance, and cannot support it as it's currently written. He said he'll recommend the board consider four changes that will allow him to give it his support.

Meanwhile, Coel said there are still many questions that have to be answered with respect to how the county will zone medical marijuana dispensaries and collectives, including in what zoning district they'll be permitted.

From his research, Coel said dispensaries usually aren't allowed in downtown business districts or tourism areas, but are put out on the edges of towns.

He said the county also doesn't know if the local establishments are operating according to state medical marijuana guidelines.

“It's going to be interesting to see how this all plays out over the next several months,” said Coel.

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Communities Area Plan and a temporary moratorium on medical marijuana dispensaries among the items they'll discuss.

The meeting will begin at 9 a.m. in the board chambers at the Lake County Courthouse, 255 N. Forbes St. TV Channel 8 will broadcast the meeting live.

The agenda can be downloaded at www.co.lake.ca.us/Government/Boards/Board_of_Supervisors/BOS_Agendas.htm .

At 11:30 a.m., the board will hold a public hearing on the purchase of 1,344 acres of land on Mt. Konocti from Michael Fowler and Diana Madura of the Elsa Fowler Revocable Trust. The purchase price is $2.6 million.

The purchase, which has been in the works since late 2007, must be completed by year's end according to the terms of the deal, as Lake County News has reported. The property is expected to enter escrow this week.

At 1:30 p.m., the board also will consider the final Shoreline Communities Area Plan, a planning document for the Northshore which has been in the works for some time. They'll also consider rezoning of lands within the area plan and review, consider and recertify, if necessary, the plan's final environmental impact report.

In other board business, supervisors will consider and discuss an interim urgency ordinance imposing a

temporary moratorium on the establishment of medical marijuana dispensaries in the county at 3:30 p.m., as Lake County News has reported, and consider the proposed response to the fiscal year 2008-09 Grand Jury Final Report in an untimed discussion.

Timed items:

9 a.m.: Approval of consent 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 today's agenda.

9:15 a.m.: Assessment Appeal Hearing for (a) Thomas Johnson - Application No. 2008-236 - Assessment Parcel No. 041-183-440, located at 16065 34th Ave., Clearlake; and (b) William Kenna - Application No. 2008-238 - Assessment Parcel No. 013-013-410, located at 21428 Jerusalem Grade, Lower Lake.

9:45 a.m.: Discussion/consideration of expansion of membership of the Seismic Monitoring Advisory Committee (SMAC) (adding one representative from the following: Lawrence Berkeley National Laboratory, AltaRock Energy Inc., county of Lake Community Development Department, Bottle Rock Power Co., city of Santa Rosa and Western Geopower Co.), and approval of the amended supplemental

plan and membership of SMAC.

10 a.m.: (a) Consideration of proposed funding agreement between the county of Lake and the U.S. Department of Energy for the operation and management of the Geysers-Wide Seismic Monitoring Array (funding provided by a U.S. Department of Energy grant and cost share matching fund provided by Calpine Corp.); and (b) consideration of proposed service agreement between the county of Lake and Lawrence Berkeley National Laboratory for the operation and management of the Geysers-Wide Seismic Monitoring Array.

10:15 a.m.: Presentation of Proclamation designating the week of Sept. 20-26 as “Adult Day Services Week” in Lake County.

10:30 a.m.: Hearing, notice of nuisance abatement, 7120 Morton St., Nice (APN 030-182-30 - Edward J. Tiscornia Jr.).

11:15 a.m.: Hearing, notice of nuisance abatement, 6948 Juniper Ave., Kelseyville (APN 044-372-08 - Benjamin Espinoza III).

Nontimed items:

– Supervisors’ weekly calendar, travel and reports.

– Consideration of award of Bid No. 09-26 for the Kelseyville Wastewater Treatment Facilities Improvement Project.

Consent agenda:

– Adopt proclamation designating the week of Sept. 20-26 as “Adult Day Services Week” in Lake County.

– Approve agreement between the county of Lake and the Lucerne Alpine Seniors Inc. for the purpose of providing funding to make repairs to the Lucerne Senior Citizens Center building (not to exceed

$15,000), and authorize the chair to sign.

– Adopt Resolution No. _____ approving agreement 09-C0015 with the state of California, Department of Pesticide Regulation and authorizing execution and signature for the electronic submission of pesticide use data during Fiscal Year 2009-10.

– Approve contract between the county of Lake and SCS Engineers for Landfill Gas Feasibility Study (not to exceed $25,130), and authorize the chair to sign.

– Approve grant deed and direct clerk to certify for recordation (APN 002-025-36 - Vonna McCabe - Trustee), and approve purchase agreement between the county of Lake and Vonna McCabe for Elk

Mountain Road Storm Damage Project and authorize the chair to sign.

– Adopt resolution declaring intent to vacate a portion of a roadway, Ponderosa Lane, located along the westerly boundary of the Villa Blue Estates Subdivision (Blue Lakes), Upper Lake area, and set public

hearing at 11 a.m. Tuesday, Oct. 6.

– Approve out of state travel for Senior Air Quality Specialist Elizabeth Knight to Nashville, Tenn. from Nov. 2-5 to attend the 2009 National Ambient Air Monitoring Conference (all costs to be paid for by federal EPA grant funding).

– Approve easement deed and direct clerk to certify for recordation (APN 008-062-30 - Leah Palmer), and approve purchase agreement between the county of Lake and Leah Palmer for the new construction of a sanitary sewer line and authorize the chair of the Kelseyville County Waterworks District No. 3 to sign.

The board also will hold a closed session to confer with labor negotiators and conduct a performance evaluation of the director of Child Support Services

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

The agenda and supporting staff reports are posted online at www.cityoflakeport.com/departments/docs.aspx?deptID=88&catID=102 .

Finance Director Janet Tavernier will take the retiree health benefits to the council Tuesday.

As it's proposed, the surcharge would cost retirees $92.55 per person per month, $194.38 for two or $277.67 for a family on a monthly basis.

Retirees have told the council during two previous meetings this summer that they were promised those benefits until they become eligible for Medicare at age 65. However, city officials said a memorandum of understanding between the city and its employees that was adopted in July 1998 states that the city doesn't have to pay more for health benefits for retirees than active employees.

In other council news, in its consent agenda, the council will discuss a final memorandum of understanding with the Lakeport Employees Association. Those negotiations had appeared headed for impasse earlier this summer, as Lake County News has reported, but the two sides appear to have resolved their differences, with a final document awaiting the council's approval.

Also in the consent agenda is a lengthy response to the numerous recommendations about the city in the Lake County Grand Jury report, released in July.

Other meeting items include a discussion regarding an application for funding from the Planning Technical Assistance allocation of the State Community Development Block Grant Program, terminate negotiations for the Avalon Housing Project Owner Participation Agreement, award the bid for the Martin and Forbes Street Sidewalk Project to Epidendio Construction, and accept the engineering plans and for the Pedestrian Improvement Project at 562 and 566 South Main St., and authorize staff to bid the project.

The council also will hold a closed session to discuss negotiations with the city manager and a case of litigation.

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