CLEARLAKE – Faced with choices that included laying off longtime staffers and cutting back important community services like code enforcement, the Clearlake City Council on Thursday decided to step back and reevaluate a final 2009-10 budget.

Last month, the council held two budget workshops to prepare a final budget, a draft of which was before them Thursday. The process to get that document there – which already has had significant changes since the workshop – hasn't been pretty, said City Administrator Dale Neiman.

“It's been miserable for the department heads and difficult on the employees,” Neiman said.

The city is feeling the affects of declining revenue due to the recession and the problems in the housing market, Neiman explained. At the same time, expenses are going up – among them costs for city employee health insurance and retirement programs.

In the past, the city has used its redevelopment housing fund to supplement the general fund, which it can't legally do, said Neiman. Doing so got the city sued several years ago.

The draft budget has a $229,000 general fund deficit, with the city starting the fiscal year with $540,000 in cash, said Neiman. By year's end, he estimated the surplus would dwindle to about $200,000, with the city running out of money in a few years' time.

City staff has reduced costs to the point where Neiman worried they'll have some cost overruns.

Because the city can't increase its revenue, it has no choice but to make the budget cuts, he said, which include “tough personnel decisions.” Neiman said the idea was to make cuts in a way that would impact services to city residents as little as possible.

The city could realize $100,000 with a renegotiated animal control services contract with the county or, failing that, could take animal control over, he said. In June the city cut the building inspector II position.

A proposal which raised the concerns of council members and citizens alike during the meeting involved eliminating the city's two code enforcement officers and handing over their work to police officers, who also would tow vehicles. Community Development staff would take over paperwork and the building inspector would assume building abatement responsibilities. That reorganization would save an estimated $128,000.

Other proposed cuts included eliminating the police chief's secretary, a savings of $71,000 annually in salary and benefits. It was noted during the meeting that the employee in question has 17 years of service to the city and is its longest-serving employee currently.

Neiman said the choice was between the secretary or a police officer. With the department losing five officer positions since 2007, “We felt that we should not eliminate any more officers,” said Neiman.

Also proposed for layoff was one park maintenance position, which could be replaced by hiring a part-time person to fill the role during summer and part of winter. Neiman said staff recommended not filling an open police dispatcher position to save $46,000 in salary and benefits, and freeze an open sergeant's position, which would save the city $108,000. Modifying the police department's take home care policy would save $48,000 annually.

Measure P, which supplies funding to the city's police force, had goals for city police coverage of one officer for every 500 residents, said Neiman. In 1996, the city had one officer for every 770 residents, and today that number has risen to one officer per 950 residents in the city.

“We obviously feel we've been going the wrong way,” he said.

Some options for the city to improve its revenue outlook is to have better enforcement and audits of bed tax, paid to the city by hotels and beds and breakfasts, said Neiman.

The budget for the coming year is balanced, said Neiman. The only good news in it is that they've managed to allocate $1.6 million for street improvements, the majority of which comes from federal stimulus money.

Since 2007 the city has made $5.9 million in street improvements, a fact Neiman credited to City Engineer Bob Galusha, who worked hard to get the money for Clearlake.

Neiman said City Clerk Melissa Swanson is tracking energy grant opportunities, and the city has a good chance of an $82,000 grant.

He also proposed promoting Doug Herren, the city's public works supervisors, to the director position, with an annual salary increase of $3,000 which will come from reducing Neiman's salary. “He's done a good job, he deserves it,” Neiman said of Herren.

Council wants to consider other options

Vice Mayor Judy Thein, who had more than 20 years experience in the city's finance department before being elected to the council, thanked city staff for its work on the budget before laying out her concerns about their proposals.

She began with code enforcement, which she said has “come a really long way” and been a valuable tool for the city. Thein said they've tried three times previously to have another department take over those duties, and it never worked.

With the city already short on police officers, Thein suggested an alternate plan, which would save the city the $238,500 it would gain by cutting the four spots Neiman proposed.

Thein suggested that, for a one-year period, city positions could be reduced one pay step for a savings of about $75,000. For those jobs that can't be rolled back the one step, there would be an across-the-board 5 percent pay cut, from top to bottom, including council members, to save another $148,000.

She said she's willing to assist with creating more revenue by assisting with stepping up the city's collections of bed tax, business licensing and other revenue collections.

Thein suggested holding off on a position until the July 23 meeting so the city could look at those alternative options.

Neiman said city staff met with the three employee associations to discuss a salary reduction. “Basically it was a no,” he said. Thein suggested starting again and taking another look.

Councilman Curt Giambruno, who said he had a soft spot in his heart for code enforcement, had his own slate of suggestions.

They included reclassifying all positions to save money, giving management a 6-percent salary cut, laying off a part-time community service officer or limiting that job to 400 hours annually, reducing another job to 600 annual hours, holding off on vehicle purchases and capital expenditures for eight months – excluding purchases supported with grand funding – and mandating a budget review in February 2010 to balance revenue and expenditures.

Other proposals included no salary increases for 18 months for all employees, a salary decrease of 2 percent for all employees for 12 months or, as a last resort, reducing everyone's salary by 7-percent, which he said would mean no one loses a job.

Neiman said the suggestions made by Thein and Giambruno would require meet and confer with the city's employee unions. He suggested they set a deadline for reaching agreements.

“We have to reach agreement on most of these things, and it may not be possible,” he said.

Giambruno said he believed everyone was ready to work together. “I just believe it can happen, and I believe it can happen in a relatively short period of time.”

Council members Roy Simons and Joyce Overton both were against harming code enforcement by cutting the two positions.

Overton questioned if there really would be savings, since police officers are paid more than code enforcement officers. “You're going to have to prove to me that that's going to be a savings to us.”

She agreed on setting a time frame and asked Neiman for an estimate. He suggested a month.

Police Chief Allan McClain said he doesn't want to give up his secretary or the code enforcement staff, but he didn't see any options. “We have cut everything there is to cut except personnel. So I have no place else to go.”

He added that the fiscal situation “is the ugliest that I've ever seen in the 30 years I've been in law enforcement.”

During public comment the council heard from Carl Carey, assistant director of the public employee division for Operating Engineers Local Union No. 3, which represents most of the city's employees.

He said he applauded the council for trying to spare employees from layoffs.

Reading a letter from the city's three employee unions – the Clearlake Police Officers Association, Municipal Employees Association and the Middle Management Association – Carey related that they believed the proposal to cut the chief's secretary needed to be reconsidered, because that position fulfills duties other staff can't.

But, primarily, Carey said he was there to address what he alleged was Neiman's failure to come to the bargaining table with the employee units, which he said has been going on since 2007 and which, at one point, resulted in an unfair labor practice complaint being filed against the city.

Carey, who said he's been in labor relations since 1986, said he's never seen such “blatant and continuous” breaking of labor negotiation rules.

“I think it's fair to say there's a disagreement on the facts,” said Neiman, explaining that he did negotiate with the city did negotiate in 2007. At the midyear budget review that year Municipal Employee Association members received a 2.5-percent cost of living increase.

Had city employees received a salary increase in 2008, Neiman said the city would be facing bigger cuts today.

Thein said she believed everyone wanted the same thing. “I know this has been really hard for everybody.”

Overton suggested that, based on what the state does with the budget, the city's situation can get worse.

She said the city's administration has taken cuts many people don't realize, including Neiman and Finance Director Michael Vivrette, who she said gave up money for other employees.

The council voted unanimously to further explore their options and continue the discussion at the July 23 meeting. After going back and forth on whether to hold over the redevelopment agency budget, the council passed it with no issues.

In other council business, the council also voted to accept a $30,000 grant for crime mapping in the city and approved a policy for the use of Austin Park and Austin Beach.

E-mail Elizabeth Larson at This email address is being protected from spambots. You need JavaScript enabled to view it. .

The report was released to county department heads and agencies on July 2, according to Bron Locke, the outgoing foreman, who has held that position for two years. It became available to the media and general public on Wednesday.

The document appears to be the largest report, in volume, that the grand jury has produced locally. It comes in at 271 pages, surpassing the 254-page 2007-08 report.

A letter from the grand jury that introduces the report explains that it contains 56 total reports produced by seven committees – budget and finance, government services, health and social services, planning and public works, public safety, public services and ad hoc.

Of its investigations, three were turned over the Lake County District Attorney's Office for further review and potential investigation.

Two complaints that the grand jury didn't undertake also were sent along to the district attorney, the report explained.

The grand jury conducts several annual oversight inquiries that include the cities of Lakeport and Clearlake, and the Board of Supervisors.

During the 2008 election, grand jurors had the opportunity to observe the Registrar of Voters' handling of a presidential election. The grand jury made recommendations about improving voting precincts at Clearlake City Hall, which it found to be “unorganized, chaotic and noisy.”

Jurors also investigated last summer's findings of a large illicit marijuana garden that Supervisor Rob Brown found on his property while clearing brush. The grand jury concluded that it found no evidence to suggest Brown was involved with the illegal crop.

Among its investigations were a continuing look into the Lake County Office of Education, which had been the source of a partial investigation that was released in last year's report, as Lake County News has reported.

One of the report's most in-depth investigations centered on the Clearlake Oaks County Water District and its fiscal challenges. The grand jury made 35 findings and 28 recommendations, most of them centering on better financial controls and personnel policies.

The grand jury also investigated several complaints.

Those included an allegation that the district attorney abused prosecutorial discretion by writing a “Brady letter” regarding an officer's credibility to his commander. The report noted that such letters can seriously damage a law enforcement officer's career. The letter, which blocked out the officer's name, noted that a case of perjury against the officer had been forwarded to the District Attorney's Office, but it wasn't prosecuted due to insufficient evidence.

Another complaint involved Brown Act violations and lack of transparency relating to the City of Lakeport Municipal Sewer District property, which the council has wanted to develop for housing.

Considerable space in the report also was donated to the county's jail and detention facilities and how they are managed.

More in-depth explanations of the report's key points and its major investigations will be the subject of upcoming Lake County News articles.

“Overall I think it's a good report and it contains many recommendations that will be of help to the county,” said County Administrative Officer Kelly Cox. “It's well organized and presented in a very professional manner.”

The report offers recommendations and seeks response from a variety of elected officials – who have 60 days to give a response to the Board of Supervisors – and agencies, which must respond in 90 days, the report explains.

The 19 grand jurors for 2008-09 included Foreman Bron Locke, Joy Allred, Ginny Cline, Richart Everts, Pauline Hauser, Phil Myers, Lonny Rittler, Linda Alexander, Harold Dietrich, Ken Fountain, Dave Johnson, Ron Nagy, Steve Tellardin, Melissa Bentley, Mike Daugherty, Kathy Harrell, Tom Marquette, Larry Platz and Carol Vedder.

The group logged approximately 75,285 miles during its year of investigations, according to the report.

With the 2008-09 report now released, it was time to discharge the group that created it to make way for the 2009-10 grand jurors, who were sworn in and seated Wednesday morning in a ceremony in Lake County Superior Court's Department 2, with Judge Richard Martin presiding.

Also on hand were Judge David Herrick, Judge Arthur Mann, County Counsel Anita Grant, County Auditor-Controller Pam Cochrane, District Attorney Jon Hopkins, Cox and several outgoing grand jurors.

Several of the jurors will stay on for an additional year, including Bentley, Johnson, Myers and Vedder. New members include John Bain, Lakeport; Rose Marie Blackwell, Clearlake Oaks; William Brunner, Lakeport; Fred Christensen, Lakeport; Venoma Gill, Clearlake; Wanda Harris, Hidden Valley Lake; Larry Heine, Lower Lake; Marilyn Johnson, Lakeport; Steve Keen, Glenhaven; Douglas Martin, Lucerne; Gerald Morehouse, Lucerne; Jack Scialabba, Clearlake; and Diane Trudeau, Cobb. Dustin Gillham of Lakeport also was on the list but didn't show up to be impaneled during the ceremony.

The new grand jury is hitting the ground running, with a training scheduled for Thursday, said Christensen, who Judge Martin appointed as foreman.

Christensen has experience on various commissions and boards in other areas. “My familiarity with governmental institutions is pretty thorough.”

He said the holdover grand jurors from last year will be “a great asset” to the new grand jury.

E-mail Elizabeth Larson at This email address is being protected from spambots. You need JavaScript enabled to view it. .

Pete MacRae, a Measure I/J Committee member, made the report to the Lakeport City Council during its Tuesday meeting.

Lakeport voters approved Measure I, a half-cent sales tax, in November of 2004. At the same time, voters supported the nonbinding advisory Measure J, which suggested uses for the funds – including, according to its original language, “repair and maintenance of city streets, park and community service facilities, and expand public services and programs.”

Measure I funds currently make up the bulk of the city's general fund. Since it began, the measure has brought in about $2.6 million through the end of the 2008-09 fiscal year.

How the funds are used has been an ongoing source of debate on the council, with Councilman Jim Irwin promoting the use of the funds for road work primarily. City staff has urged the use of the funds to maintain service levels during the economic crisis.

In April, MacRae, Robert Chestnut, Harold Vickers, Marc Spillman, Christi Groff, Stacey Mattina and Annette Hopkins were appointed to the committee, which Council Member Suzanne Lyons chairs.

Interim City Manager Kevin Burke guaranteed the council earlier this year that the committee's suggestions would carry serious weight in the city's budget process.

On Tuesday, MacRae summed up the committee's recommendations and spending priorities for the new fiscal year.

He said it was pretty clear to the committee that the general fund needs to use Measure I funds for general budget purposes – “which, under the measure, is legal,” he noted.

While forming its priorities list, MacRae said the committee tried to keep in mind the suggestion that a large segment of the voting population thought they were voting for public works improvements and didn't understand that, legally, the funds can be used for general purpose projects.

For this new fiscal year, the committee focused on maintenance and upkeep of existing facilities, with total expenses set at $427,618, said MacRae. In the future, the group suggests the money should be directed more at capital improvements.

Because of serious concerns about the invasive quagga mussel, MacRae said the committee suggested using some of the sales tax proceeds to hire a part-time park ranger to monitor the city's launch ramps for quagga sticker compliance during the busiest boating times.

“We fully recognize that the city of Lakeport cannot solve the quagga mussel problem on its own,” but hiring its own ranger would be a step in the right direction, and would set an example for the county and the city of Clearlake, said MacRae.

The written priorities the committee submitted suggest taking $30,000 that previously had been targeted for Americans with Disabilities Act (ADA) improvements – which it was determined can be covered by the city's redevelopment agency – and using a portion of it for a part-time ranger position. The ranger program, the report suggested, should be capped at $20,000.

In the past, Measure I funds have been used for projects subject to state grants, with the idea that the grants would repay the sales tax funds, said MacRae.

That's worked so far, but given the state's budget situation, MacRae said the committee is concerned that there is a chance that, at some point, the state won't reimburse the money. So they suggested that Measure I funds only be used on projects that would have been financed by the sales tax revenue anyway.

For the purposes of clarity and transparency, the committee also proposed that the city use separate accounts for Measure I revenue and the general fund, MacRae said.

Measure I will be used to fund some city needs in this new fiscal year – such as a new fleet of Lakeport Police cars – that are a source of disagreement over whether or not they're an appropriate use.

That debate had flared up earlier in the evening before MacRae's presentation and during a budget workshop the council held with staff. Irwin had asked if more than an initial lease payment of $73,000 on the new car fleet would come from Measure I. Burke said it's all a question of revenue.

Councilman Bob Rumfelt said he felt the police cars are an appropriate Measure I expenditure. “I would absolutely disagree with you, Bob,” said Irwin, adding that police cars are a necessity, not an “extra special thing” that he believes Measure I is meant to support.

The committee isn't offering an opinion in that debate, which MacRae said they're leaving up to the council.

However, MacRae suggested that, in future years, if there is a proposed expenditure for a controversial project, the amount funded from Measure I should be limited to no more than 15 percent of the total Measure I funds available.

MacRae said public safety and tourists are of great importance to the city, and so the committee believes it's appropriate for Lakeport to develop a comprehensive bicycle lane plan.

They also suggested that the city consider bonding Measure I revenues. The committee's written report notes that, with the city's favorable credit rating, selling revenue bonds backed by Measure I revenues could bring a favorable interest rate and could be used to leverage expanded capital improvements.

MacRae thanked the committee members for their hard work. He said the information the committee had to work with was “sketchy” and kept changing at first.

“It wasn't an easy task but I'd like to think we put together a pretty good set of recommendations for you,” he said.

Lyons said she understood that the committee's recommendation was to not bond 100 percent of the Measure I funds. MacRae said the committee didn't suggest a specific amount, only urged the city to explore it.

City Attorney Steve Brookes said the city looked at bonding the proceeds in 2005-06.

Proposed Measure I expenditures

The committee's spending recommendation list for 2009-10 follows:

• Aquatic weed abatement – $4,956;

• Westshore Pool, operating expenses only: $30,520;

• School resource officer program – $4,000;

• Street sweeper payment – $50,000;

• Asphalt – $50,000;

• Police cars payment – $73,000;

• Street materials – $19,100;

• ADA improvements ($20,000 suggested for ranger program, $10,000 to remain in ADA account) – $30,000;

• Public Works salaries/benefits for road maintenance and repair – $58,755;

• Parks, operating expenses only – $107,287.

Total amount: $427,618.

E-mail Elizabeth Larson at This email address is being protected from spambots. You need JavaScript enabled to view it. .

LAKEPORT – A long-running disagreement between more than a dozen city retirees and the city of Lakeport over a surcharge on health benefits came to a head on Tuesday.

As more than 20 people – retirees, spouses and current city employees – looked on, the Lakeport City Council voted to cover a surcharge on retiree health benefits for one more month, after which retirees will have to pay for the fee themselves if the city can't find a less expensive health insurance option.

For the last three years, “early retirees” – those who retire before age 65, when Medicare kicks in – have successfully convinced the Lakeport City Council to cover the surcharge on their health benefits that went into effect in the 2006-07 fiscal year.

In addition to those early retirees – the youngest of whom is 45 years old – the city has 41 active employees and 22 regular retires in its health insurance program, officials reported.

The surcharge was assigned by Redwood Empire Municipal Insurance Fund (REMIF) – the 15-member group that oversees the city's insurance – because it found in a survey that early retirees cost more money to cover than active employees.

Over the past year the surcharge has grown by about 15 percent, now costing $92.55 per person per month, $194.38 for two or $277.67 for a family on a monthly basis.

What's forcing the issue is the intersection between the surcharge and a memorandum of understanding (MOU) between the city and its employees – the provisions of which were first adopted in July 1, 1998, as Lake County News has reported.

The MOU states that the city doesn't have to pay more for health benefits for retirees than active employees, City Attorney Steve Brookes told the council Tuesday.

Since it was signed, there has been a lot of debate about the MOU's intent. “It says what it says,” said Brookes.

Before that MOU was signed, city retirees had been guaranteed full health care benefits until Medicare became active, after which the city provides a supplemental health plan. New hires no longer are offered the full retirement health care benefits.

Councilman Bob Rumfelt said that he called REMIF – at the urging of retiree Lloyd Wells – and concluded the surcharge was legitimate, and resulted from REMIF trying to keep costs down.

Tom Engstrom, who retired from the city's police chief post in May of 2005, said he's appeared every summer since his retirement to ask the council not to make retirees pay the surcharge.

On June 17 he and the other 16 retirees received a letter from the city that referred to the MOU's language, dubbed them “early retirees” and informed them that they'll now be responsible for paying the surcharge out of pocket.

Engstrom said he and his fellow retirees were recruited, hired, retained and retired with the understanding that they had that full health coverage in retirement.

He quoted a Lake County News story from June 5, 2008, which explained how the council last year had concluded that they should continue paying the surcharge (See the story here: http://bit.ly/RxFJ3E ).

Engstrom appealed to council members, some of whom are themselves retirees, and reminded them of how difficult it is to find another $200 a month to make ends meet.

“We are put in a separate category because of our age, and that to me is age discrimination,” he said, asking the council to honors its promise to the retirees, which earned him applause.

Mayor Ron Bertsch asked Brookes if they've looked at any other health programs.

Brookes said REMIF does have some other options, including a high deductible plan. There may be some less expensive options, he said, adding the caution that they may not turn out to be as good as the current plan. Rural areas typically struggle to get the kind of good health plan at a good price that Lakeport currently has.

One reason why it's more expensive to take care of retirees is because “they got busted up working for you,” Pat Haas, a former city of Department of Public Works employee who retired after 33 years and nine months on the job, told the council.

Cindy Engstrom, quoting the June 2008 Lake County News article, referred to the council's vote to add language “to update the retiree health rules to settle the issue for current retirees.” She pressed Brookes on whether that had been done. He said it was not.

“The bottom line is whether or not you are people of integrity who keep your promises” – even if it hurts, said Engstrom.

Councilman Roy Parmentier pulled out a copy of the MOU and reread the part about the city not being required to pay more for premiums on retirees than active employees.

“You knew it when you signed it,” he said, waving it at the retirees.

Cindy Engstrom said a surcharge is different than a premium.

Council members suggest working with retirees

Bertsch asked Brookes to meet with the retirees and look at their options, which Brookes said he would do. Councilman Jim Irwin asked if they already were locked into the current health plan for this year, and Brookes agreed that they probably are.

Council member Suzanne Lyons said her husband should have been able to retire three years ago but his retirement benefits were changed. She pointed out that only three council members currently accept health insurance benefits, and questioned if that would benefit premium prices. It wouldn't, said Brookes.

Lyons and Bertsch are the only members that don't accept the city's full benefits – health, vision and dental – for council members. It's estimated to cost the city $45,209 for the 2009-10 fiscal year to insure the other three members.

In contrast, if each of the early retirees had at least one spouse or dependent in addition to themselves on the health plan, it would cost the city just under $40,000 to pay the surcharge for a year.

“It's no secret what we're trying to do,” said Irwin, explaining that the council needed to adjust to lower general fund revenue.

The question they're struggling with, Irwin added, is whether everyone rather would have a bad health plan that's completely paid for or a “Cadillac” plan for which they had to pay a portion.

Bertsch said they needed to look into it. “We probably should have looked at that last year.”

“We did look at it,” Brookes replied. He said other plans are more expensive, although they hadn't considered the high deductible options.

He said the city has relied on REMIF for its purchasing powers. “They've done a good job for us.”

“I would like to see us try to work with them,” Bertsch said of the retirees. “There's got to be an option out there.”

Wells, who said he also called REMIF to ask questions, told the council that the the surcharge “is not something that's industry standard.”

He said they know from experience that not everything REMIF offers is a good deal. “REMIF doesn't have all the answers.”

Noting, “We'll be fighting this thing until we're all dead and buried,” Parmentier suggested taking time to research alternative health plans.

“This month we pick up the surcharge – after that, no guarantees,” he said.

Irwin asked for clarification on Parmentier's suggestion. At the same time, some retirees complained loudly from the audience.

“I'm talking to Roy,” said Irwin.

“We're talking to you,” one man shot back.

Parmentier said he worked for Frito Lay for years, and he had to pay for his health plan.

He and Haas, sitting in the audience, began arguing back in forth. Haas' sentiments were that the city should keep its promises.

Parmentier made the motion to pay the surcharge for July and bring the issue back for further discussion in August, at which time early retirees may have to start paying the surcharge.

Bertsch said he was concerned that taking only 30 days to look for options was “asking too much.”

“It has to be settled,” Parmentier replied before the 5-0 vote.

Bob Barthel, who just took early retirement from the city's Department of Public Works after 29 and a half years, reminded the council that retirees like him took an early exit to save the city money and prevent layoffs. He said his early retirement will save the city $86,000 over the next three years.

“We have saved and we are going to save the city an incredible amount of money, and I would just like the city to remember that,” said the 54-year-old Barthel, who just got his first pension check.

He told Lake County News after the meeting that a few weeks before he accepted early retirement he was told that he would receive the full health coverage. Then, before he received his first retirement check, he got the city's letter warning early retirees would have to pay the surcharge.

Barthel said he also had been on the city employee union's negotiating team, and that city employees often agreed to cost of living increases of 1 or 1.5 percent – rather than the more common 3 percent – in an effort to help save the city money.

E-mail Elizabeth Larson at This email address is being protected from spambots. You need JavaScript enabled to view it. .

AltaRock Energy, of Sausalito and Seattle, will now officially be a member of the Anderson Springs Geothermal Mitigation Committee, based on a unanimous board vote.

Last month the company began drilling on a Bureau of Land Management lease held by the Northern California Power Agency, as Lake County News has reported.

AltaRock intends to use the enhanced geothermal system technology to drill deep into bedrock in an effort to release heat. The process will then inject water to get steam for geothermal energy production. That bedrock fracturing is scheduled to begin in August.

Since late last year, company representatives have been present at the committee meetings, which are attended by residents, county officials and representatives of other local geothermal operations.

Lake County Special Districts Administrator Mark Dellinger said the geothermal mitigation impact fund was established several years ago.

He said AltaRock requested to be on the corresponding committee because they wanted to participate financially in helping the community. Dellinger supported formally adding them to the group.

NCPA representative Bill Smith said AltaRock is undertaking the project to earn the right to do more geothermal development on the lease.

The committee, said Smith, is intended to allow those companies active in The Geysers operations to report on activities, answer questions and discuss the potential impacts between seismic events and their geothermal operations.

Smith said it seemed reasonable to NCPA that a new operation in the area should have the same responsibility that they have.

Committee Chair Joan Clay said the group heartily supported AltaRock joining.

“It looks like we may be having more and more rock and roll out there,” said Clay, referring to more earthquakes that have occurred over the last week and a half – four earthquakes measuring magnitude 3 and above, as Lake County News has reported.

Clay said if another company brings a geothermal project to The Geysers it should be a member of committee, as this is the only mitigation available for damages.

Dellinger noted during the meeting that he'll come back to the board in about six weeks with the proposal that AltaRock join the Seismic Monitoring Advisory Committee.

Clay asked if they'll always have to come back to the board to seek to add any new companies.

County Counsel Anita Grant said future amendments to the committee's membership documents could be broader to allow for adding new members without coming before the supervisors.

During the discussion, Grant also suggested that the county's use permit requirements could specify that geothermal companies join the committee.

Adrian Foley, representing AltaRock, said he has been attending meetings as a guest.

“There's a second component to whether we join or not,” said Foley.

Foley said the company has agreed with the community and NCPA to deposit $10,000 annually into the mitigation fund, but the mechanism for how that will take place is still up in the air.

Calpine and NCPA both make money available to the fund, said Foley. “We're a little different than both of them in our relationships.”

AltaRock also wants to make another general contribution to Anderson Springs' sewer project, and they are looking for a way to make the contribution, Foley said. Board Chair Denise Rushing suggested county administration can help them with that.

Anderson Springs resident Meriel Medrano, another committee member, said there are two separate committees meeting as one. In addition to the mitigation group, she said there is one that Clay calls the “Christmas tree” committee, which includes Calpine. Medrano said Calpine has wanted to stay separate and not put any money toward mitigation at all, just community projects.

“They have done a great deal and we're appreciative of it,” she said.

Dellinger said when the committee structure first was created, Calpine stated that they could not do mitigation and instead wanted to participate in a community investment fund. “That's the way it started and that's the way it's been.”

County Administrative Officer Kelly Cox noted, “The monies have not been commingled.”

Dellinger said he agreed with the suggestion that they could put committee membership in geothermal companies' use permits, but cautioned that, in the case of AltaRock, that wouldn't work since it's on a federal land lease and they're not required to get permits from the county's Community Development Department.

Comstock moved to approve adding AltaRock to the committee, which the board approved 5-0.

E-mail Elizabeth Larson at This email address is being protected from spambots. You need JavaScript enabled to view it. .

A closed session for the council to discuss labor negotiations will begin at 5:30 p.m., to be followed at 6 p.m. by the regularly scheduled meeting in the council chambers at Clearlake City Hall, 14050 Olympic Drive. TV Channel 8 will broadcast the meeting live.

The council had two budget workshops last month to work on a draft budget.

City Administrator Dale Neiman's report to the council on the city's budget notes that the city's cash balance as of July 1 was $2.3 million. Revenues for 2009-10 are estimated to be $8.2 million, while appropriations are estimated to be $9.75 million, for a deficit of $1.4 million. That deficit will knock down the city's cash balance to $857,649 on June 30, 2010.

The redevelopment budget estimates a cash balance on July 1 at $12.2 million with 2009-10's revenues set at $3.6 million. The agency's 2009-10 appropriations are estimated to be negative $3.8 million, leaving a $163,080 deficit. Neiman's report estimates that redevelopment still will end the new fiscal year in good shape, with a cash balance of $12.1 million on June 20, 2010.

“It is important to recognize the draft Budget assumes the State will not financially impact the City by taking any of our revenues,” Neiman said in his report. “This will not happen. When the State does take money from us, we will need to amend the Budget to make up the difference.”

He also cautioned that the city will need to have adequate cash reserves to make it through “difficult financial times like we have now.”

“If we had an adequate level of cash reserves we would not be faced with the very difficult decisions we have to make today,” Neiman added.

In other matters on the Thursday agenda, Anna Blair of REACH Air Medical Services will give a presentation to the council, which during the meeting also will consider approval of the JAG Recovery Act Grant application and look at establishing a council policy for use of Austin Park and Austin Beach.

E-mail Elizabeth Larson at This email address is being protected from spambots. You need JavaScript enabled to view it. .