Dutch Harbor, once the site of a motel, is now a vacant lot on Main Street next to the Natural High School property, owned by the Lakeport Unified School District.

City Redevelopment Manager Richard Knoll took the proposal to the Lakeport City Council – sitting jointly as the Lakeport Redevelopment Agency – to begin the process of having the city consider selling the agency the land, which the city bought in 1993 for $500,000.

Knoll said the agency's redevelopment powers can be used to develop the property for specific intended uses; the agency also can enter into an exclusive negotiating agreement with a developer, which would lead to a disposition agreement.

Due diligence would need to be completed first, said Knoll. “This is not a decision to acquire the property,” he said; it was merely a request to direct staff about how the council and agency wanted city staff to move forward.

In 2006 the city entered into an agreement with developer Matt Boeger, offering him first right of refusal on Dutch Harbor as part of a larger agreement to look at developing an 18-hole golf course and subdivision on the City of Lakeport Municipal Sewer District property, as Lake County News has reported.

Knoll said that first right of refusal would need to be addressed if the city were to consider selling the land to the redevelopment agency.

City Attorney Steve Brookes said the city would need to present to Boeger the option to buy the land on the same terms as those offered to the agency.

“If he wants it we've got to sell it?” asked Councilman Ron Bertsch, whose family once owned the Dutch Harbor property.

“Yes,” replied Brookes.

Councilman Bob Rumfelt asked about setting a price. Brookes said the price would be fair market value.

If the city offered Boeger the property and he couldn't answer the terms, his purchase option goes away, said Brookes.

After comments by council and city staff, a lengthy public comment period followed, during which the merits of selling the property to the agency were questioned.

Business owner Cheri Holden asked what the advantage was to having redevelopment own the property.

Knoll said the redevelopment agency is in the business of addressing blighted conditions in the redevelopment project area. Redevelopment authority allows the agency to use the site alone or assemble it with adjacent lots for a larger development site. They can then put out requests for development proposals.

He explained that only the agency – and not the city – can do development and disposition agreements. “There's just more options available in terms of what the agency can do to stimulate development versus the City Council,” Knoll said.

Holden questioned the relationship with the developer and why the agreement originally was formed.

Brookes said Boeger Land Developer received the first right of refusal in the development agreement because they wanted a lakefront property to develop a complementary amenity for the golf course.

Following Holden to the microphone was Lucerne resident Lenny Matthews, who said Supervisor Denise Rushing has held community meetings to discuss redevelopment projects and what residents want to see. She said she would love to see Library Park extend down the lakeshore.

Mayor Buzz Bruns said the general plan calls for a thoroughfare from Library Park down to Dutch Harbor.

Knoll said city staff has been engaging in a “significant amount of work” regarding downtown, which includes development of a waterfront properties improvement plan. He said the plan encompasses the Natural High and Dutch Harbor, and existing motels along Main Street.

The plan eventually will go through a public review process in order to make sure the community is on board with the plans, said Knoll.

Lakeport resident Suzanne Lyons said she was concerned about the first right of refusal, saying she was concerned about the city losing control of the property.

Brookes said the general plan would still require certain conditions. “I don't think it changes the city's power to insist upon a public access easement along that frontage,” he said

Victoria Brandon, representing the Sierra Club Lake Group, asked about process, saying general planning for an area usually is done first, with special proposals for special properties coming later.

Knoll replied that a “hand-in-hand planning process” is at work, with intended uses for Dutch Harbor – including resort residential or commercial, or a combination of both – already defined.

Lakeport resident Todd Falconer said he didn't know much about redevelopment, but he had many questions. Knoll gave him an information sheet on redevelopment.

Falconer said he believed in property rights, and was concerned about redevelopment. He asked if Dutch Harbor and Natural High were blighted.

“It depends on how you look at it,” said Bruns.

Knoll said under California law a redevelopment area must have a preponderance of blight. That doesn't mean every parcel is blighted. Dutch Harbor could, in theory be considered blighted, he said.

Blight has a broad definition, said Knoll, and can include oddly shaped parcels, those without infrastructure and any with structures that are falling down. He said he didn't recall if the city has ruled that Dutch Harbor is blighted.

Falconer asked if Natural High was blighted. Knoll said he didn't remember.

“My opinion based on what I'm hearing so far is this is really disturbing,” said Falconer.

He told the council that the redevelopment process it was pursuing was “dangerous.”

“It's un-American,” he said. “Go read the Constitution and think about it.”

Councilman Roy Parmentier moved to give the staff direction to move forward on looking at the sale, with Councilman Bob Rumfelt seconding. The council voted unanimously to approve Parmentier's motion.

Following that item, Bruns asked to have a discussion on adding eminent domain to the city's redevelopment plan postponed until after the November, during which three council seats – those held by Bruns, Parmentier and Rumfelt – will be up for election.

He said he wanted to hold off and let the newly elected council decide.

Parmentier moved to push the discussion back until the second meeting in December, with Rumfelt seconding. The council voted 5-0 to put the discussion off until after the election.

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On Tuesday, the current Board of Supervisors – Rob Brown, Anthony Farrington, Ed Robey, Denise Rushing and Jeff Smith – had a similar far-reaching opportunity, but this time the result was different, with a unanimous vote given to purchase 176 acres on Mt. Konocti for $1.2 million and sign a purchase option agreement on more than 1,500 more acres, which will cost $2.6 million.

The word “historic” was heard a lot at Tuesday's Board of Supervisors meeting. The purchase agreements were discussed before a nearly full audience, which itself offered unanimous support.

Public Services Director Kim Clymire – who said he's wanted to purchase the mountain since joining the county 27 years ago – even danced a little jig on his way up to present the item to the board.

Late last year the Fowler family offered the property on Mt. Konocti – which it has owned for more than 50 years – to the county. Since then, negotiations have been under way, with the county negotiating team including Clymire, Chief Administrative Officer Kelly Cox, Supervisors Ed Robey and Rob Brown, and County Counsel Anita Grant.

Cox said Tuesday that the Fowlers are retaining 168 acres subject to a conservation easement.

The only concern about the purchase related to the condition of Konocti Road, which leads up the mountain. The road is going to need some improvement, one resident warned, if accidents are to be avoided.

That was the main concern in a discussion largely filled with optimism.

“This is a great day,” said Supervisor Denise Rushing.

“We all have a relationship with this mountain,” she said. “The opportunity to acquire these lands will never present itself again.”

Supervisor Jeff Smith said acquiring the Mt. Konocti property will be remembered far into the future. “To me this is probably the biggest thing we can do for the county.”

Supervisor Anthony Farrington echoed Rushing's and Smith's sentiments. “It is a historic endeavor,” he said, thanking the negotiating team.

Cox said a “windfall” of unanticipated geothermal revenue from the federal and state governments last year made the purchase possible.

The money, which won't be repeated again, was connected to a new lease the federal government sold in The Geysers for a very large amount of money, said Cox.

Those funds were kept aside and saved, said Cox. They can be used for specific things, including parks and resource preservation.

Cox said he had wondered how the county might be able to pull off the purchase. “The stars were aligned right and this money arrived.”

Supervisor Rob Brown, who said the mountain forms “a big, big chunk” of his district,” offered the motions to purchase the 176-acre Buckingham Peak property as well as to approve the purchase option agreement for the 1,512-acre area.

“I would imagine at the end of my term, my tenure as supervisor, when asked the question, 'What did you do that you're the most proud of? – this would be that,” he said.

The unanimous votes on both motions garnered applause from the audience.

The board also approved a memorandum of understanding with Conservation Partners, which may allow the county to access between $300,000 and $1 million in Bureau of Land Management Property Exchange Funds for Mt. Konocti acquisition costs.

“I've always loved that mountain and thought it should belong to all of us,” said Clymire, who then handed the board a check, on behalf of himself and his wife, to go toward the purchase.

Clymire told Lake County News Tuesday afternoon that the geothermal funds the county received are being set aside as a “safety net” to buy the property in case other sources of funding fall through.

The county also is asking Congressman Mike Thompson, and Sens. Barbara Boxer and Dianne Feinstein for help, as well as seeking federal bond funding, Clymire said.

Clymire called Konocti “the jewel in the crown of the lake.”

“It's going to be preserved in perpetuity as park property,” he said, and will feature both equestrian and pedestrian hiking opportunities.

Clymire said the county is setting up special account and trust funds into which it will deposit donations from the community for the purchase.

Tax-deductible donations can be sent to Lake County Public Services at 333 Second St., Lakeport, 95453; Clymire said to note “Mt. Konocti acquisition” on the check.

All of the money donated will go directly to the purchase, he said.

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

Sitting jointly as the council and redevelopment agency board, members will consider authorizing the process to amend the Lakeport Redevelopment Agency's plan to add the use of eminent domain of non-owner occupied properties, according to a report from Redevelopment Manager Richard Knoll.

Currently, the plan – adopted in 1999 – excludes the use of eminent domain, but Redevelopment Agency staff is proposing that be changed in order to assist in assembling land for redevelopment projects, according to Knoll.

“The inability of the Redevelopment Agency to use eminent domain limits the ability to assemble parcels of land for Redevelopment in the Project Area; it stifles the Agency in carrying out Redevelopment activities,” Knoll's report says. “The Agency with eminent domain authority will be able to have another tool to assemble land (if needed) on non-owner occupied properties in order to implement the Redevelopment Plan.”

He said there will be costs associated with the Redevelopment Plan amendment process (legal and technical), which will be covered by agency funds. Much of the initial work will be completed by city and agency staff, Knoll writes.

Considering the Dutch Harbor acquisition

Also on the redevelopment agenda Tuesday, the council and redevelopment board will look at beginning the process to sell the Dutch Harbor property to the agency.

Dutch Harbor is a vacant parcel located a 910 N. Main St, purchased by the city in 1993 for $500,000.

Knoll's report states, “It is proposed that the Redevelopment Agency initiate the process to consider acquisition of the property so that the unique powers and procedures set forth in the California Redevelopment Law may be utilized to facilitate development of the property consistent with the General Plan, Zoning Ordinance and Redevelopment Plan.”

Knoll's report explains that the city has attempted to market the property for years but, while there is interest in developing it, “there seems to be a need to expand the marketing efforts and develop more specificity with respect to intended land uses.”

He notes there also have been recent attempts to contact the Lakeport Unified School District regarding consideration of a lot line adjustment to incorporate the already developed portions of Natural High into the Dutch Harbor property to enhance its development potential for a large hotel project.

The Redevelopment Agency's due diligence will include needing to address an option agreement with developer Matt Boeger in conjunction with the City of Lakeport Municipal Sewer District development project, according to Knoll's report.

“Mr. Boeger has indicated his willingness to work with the City in addressing the Dutch Harbor Right of First Refusal provisions,” Knoll states.

Knoll said by initiating due diligence, it's not a final decision to acquire the property, some of the proposes uses for which have included a marina.

In other redevelopment matters, the council and Redevelopment Agency Board will accept an engineering study for the S. Main Street Project and proceed with the plan concept, authorize preparation of construction plans and bid documents, and put the project out to bid as a Redevelopment Agency capital project.

Public hearings look at bed and breakfast issues

Two public hearings also are planned for Tuesday evening.

In the first, the much-discussed Ordinance 874, which will modify various sections of the Lakeport Municipal Code regarding the establishment and operation of bed and breakfast inns in the city, will once again be discussed.

The issue has come up at several previous council meetings, with the council sending it back either to staff or to the Lakeport Planning Commission for further revision. The ordinance was meant to put back in the word “maximum,” which was mistakenly omitted during a previous Zoning Ordinance revision, when referring to the number of guest bedrooms allowed.

Five would be the maximum number of guest bedrooms, with new language also added to limit the maximum number of guests per room to four, according to a staff report by city Planning Services Manager Andrew Britton.

The council also will consider an application from Gregory Gill, who wants to operate a bed and breakfast and 2-16^th Street.

The Planning Commission voted on the matter in April, but due to one member having to recuse himself because he owns property nearby, the vote resulted in a tie, Britton reported. According to city code, a tie results in an automatic denial, and Gill is appealing to the council.

Britton's report said city staff had recommended the Planning Commission approve Gill's use permit, although neighbors in the area are concerned about operation of a business in a low-density residential neighborhood.

Applications, delegate appointments also on agenda

In other business Tuesday, the council will consider applications from the Rotary Club of Lakeport for the annual Konocti Challenge Bicycle Event on Oct. 3, Sponsoring Survivorship for their annual walk to assist Lake County women in their battle against breast cancer to be held on Oct. 4 and the Lake County Arts Council for Art in the Park on Aug. 30.

The council also will nominate a voting delegate and two alternates for the annual League of California Cities conference; and receive and file a business plan report from City Engineer Scott Harter regarding a list of projects for the Pavement Management Plan, and appoint two council members to work with Harter to define the plan's direction.

Following the public portion of the meeting the council will meet in closed session to discuss a case of pending litigation, Superior Acquisitions versus the City of Lakeport. That suit was filed regarding the sale of the Vista Point Shopping Center late last year.

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

During the 10:15 a.m. public hearing the board is expected to approve the purchase of a 176-acre parcel on Buckingham Peak for $1.2 million from Buckingham Peak LLC.

The board also will consider a purchase option agreement for 1,512 acres for $2,6 million from Michael Fowler and Diana Madura, as well as a proposed memorandum of understanding between the county, Conservation Partners and Cal-BLMX Inc. regarding the acquisition of Mt. Konocti property for conservation purposes.

Later in the day, at 1:35 p.m., the board will receive an update from the Quagga Mussel Task Force and have a discussion regarding inspection stations and decontamination units in Lake County.

On Tuesday the board also is due to approve findings of fact in James Clement's appeal of the Planning Commission's approval of a minor use permit for John and Joanne Van Eck's riding academy, commercial stables and clubhouse on Steelhead Drive in Kelseyville. Last month, the board denied Clement's appeal.

Other items on the Tuesday agenda include:

Timed items:

– 9:10 a.m.: Consideration of appointments to fill vacancies on Lower Lake Waterworks District No. 1 Board of Directors.

– 9:15 a.m.: Public hearing to review and receive public comment on the proposed 2008-09 Lake County Air Quality Management District Budget, in accordance with California Public Health and Safety Code Section 40131; and Proposed Resolution to establish Post Employment Health Benefits Designation in the amount of $80,175.

– 9:30 a.m.: Presentation by Rev. Shannon Kimbell-Auth about the Innisfree Project to abate homelessness in Lake County.

– 10 a.m.: Public hearing on the intention to change the name of an existing road from “Scotts Creek Drive” to “Rue Du Bateau” located in the Blue Lakes Valley Estates Subdivision No. 1, Upper Lake.

– 10:30 a.m.: Discussion of the creation of a Special Assessment District for the bridge over Big Canyon Creek at Ettawa Springs, Middletown.

– 11 a.m.: Hearing, notice of nuisance abatement, 11809 Widgeon Way, Clearlake Oaks, owned by Joan Cornett.

– 11:05 a.m.: Hearing, notice of nuisance abatement, 11793 Widgeon Way, Clearlake Oaks, owned by Neil Bloomfield.

– 11:30 a.m.: Presentation of Annual Report from the Lake County Mental Health Board, continued from May 6.

– 1:30 p.m.: Public hearing, appeal of Heart Consciousness Church/Harbin Hot Springs of the Planning Commission’s approval of a Minor Use Permit for Eagle Consulting on behalf of U.S. Cellular, for the construction and operation of a wireless communication facility on leased parcels, which will consist of a synthetic pine tree-type 62-foot high steel monopole with six panel antennas; project located at 19237, 19241, 19657, 19672 and 19682 Harbin Springs Road, Middletown (Clerk’s notation: US Cellular has withdrawn its application for this Minor Use Permit).

Untimed items:

– Consideration of approval of findings of fact, appeal of vicious animal abatement order, located at 5012 Blue Court, Kelseyville (Frances Layton).

– (a) Consideration of proposed resolution approving the necessary documents to achieve the transfer of responsibility of the Fourth Floor of the Lake County Courthouse (the Court Facility) from the County to the State and provide for the continued maintenance thereof; (b) Consideration of proposed

Memorandum of Joint Occupancy Agreement; (c) Consideration of proposed Transfer Agreement between the Judicial Council of California, Administrative Office of the Courts, and the County of

Lake for the transfer of responsibility for Court Facility; (d) Consideration of proposed Joint Occupancy Agreement between the Judicial Council of California, Administrative Office of the Courts, and the County of Lake; and (e) Consideration of proposed Memorandum of Understanding between County of Lake for Court Facility services relating to Lakeport Court Facility.

– Consideration of request for approval of advanced step hiring (fifth step) of applicant for the position of chief probation officer.

– Consideration of proposed Agreement between the county of Lake and SHN Consulting Engineers & Geologists, Inc for engineering services for Victoria Drainage-Lucerne Channelization and Culvert Upgrade in the amount of $27,760.

– Consideration of Award of Bid No. 08-41 for one (1) new smooth single drum vibratory compactor.

– Discussion and request for Board direction regarding the Falconer Property Acquisition, Lampson Field.

– Consideration of recommended Bid Award for Clearlake Oaks Plaza Project.

– Consideration of requested amendment to uniform and clothing purchase policy to allow department to purchase such clothing and personal equipment for staff use while assigned to specialty units.

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

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View of Mt Konocti and Clear Lake from the Northshore ridgeline. Photo courtesy of Lake County Marketing.

LAKE COUNTY – Imagine, a series of trails encircling the perimeter of Clear Lake – both land and water-based – highlighting Lake County’s outstanding natural beauty, culture and history.

The land-based trails would provide hikers with scenic views of Clear Lake, Mt. Konocti, vineyards, low-lying valleys, small communities and distant wilderness areas. Through the use of signage, the trails could provide educational opportunities and highlight geological, cultural and historical information, as well as promote agri- and eco-tourism.

The water “trails” would permit recreational kayakers and canoers to experience the same views, vistas and educational opportunities, but from a reverse perspective while fishing, bird watching or enjoying Lake County’s clean air.

The dream of the Konocti Regional Trails (KRT) group is to turn imagination into reality through a system of linked trails that could ultimately become a 100-mile circle surrounding the lake with connector trails extending away from its shores and outside the county.

This project began in 2001 when the Lake County Board of Supervisors specified a 25-mile stretch of Highway 20 – from Upper Lake to Clearlake Oaks – as the county’s first redevelopment project.

Despite heavy travel along Highway 20, proximity to two large metropolitan areas, and unparalleled scenic views of Clear Lake and Mt. Konocti, empty commercial buildings and a multitude of vacant homes contributed to a gradual decline in tourism.

Over the next five years, the county diligently acquired waterfront parcels along Highway 20, with the goal of increasing public access through community parks, boat launches and open space.

In the spring of 2007, volunteers Holly Harris and Chuck Lamb approached local government officials with a vision – to create a series of interlinking non-motorized trails and “blue ways.”

While Lake County boasts miles of hiking trails, nearly all are on federal lands managed by Bureau of Land Management and the Mendocino National Forest Service. The closest recreational trail for use by local residents was miles away.

The proposed Ridgeline and Shoreline Trails would parallel Highway 20 – from Highway 53 in Clearlake Oaks to Highway 29 in Upper Lake – with connector trails down to the towns of Clearlake Oaks, Lucerne, Nice and Upper Lake. By utilizing existing county parks and boat launches along the Clear Lake shoreline as staging areas, expenses could be minimized while providing a hub between land and water trails.

The Lake County Board of Supervisors unanimously endorsed the idea in the summer of 2007 and two large landowners in the Clearlake Oaks area – Copper Cross Vineyards and Shannon Ridge Winery – e agreed to participate, providing a potential two miles of initial ridgeline trails.

View of the back country area from the ridgeline at Shannon Ridge Vineyards in Clearlake Oaks. Photo courtesy of Shannon Ridge.

KRT members began approaching other individuals and gained strong community support for the project. The Lake County Sheriff’s Office pledged the use of inmates to develop and maintain trails on public lands and in the fall of 2007, the project was awarded a grant from the National Park Service’s Rivers, Trails and Conservation Assistance Program to provide the assistance in trail planning and development.

Under the direction of Kim Clymire, director of Lake County’s Department of Public Services, the initial KRT partnership was expanded to include members of local, state and federal government agencies, recreational stakeholders, property owners, tribal and health industry representatives.

During this time, a large segment of Mt. Konocti – which has been in private hands since the mid-1800s – became available for acquisition by the county. Totaling more than 1,500 acres, the parcels would be contiguous to BLM holdings, providing public access to nearly 2,500 acres across most of the mountain, including the four peaks and communications towers.

The potential purchase is scheduled for a public hearing on Aug. 5; if approved, the intent would be to provide open space for hiking trails and county parks. Fundraising to attain the additional $2,000,000 needed to purchase the property would begin immediately.

Aerial view of the Northshore ridgeline. Photo courtesy of Shannon Ridge.

The primary planning area includes the waters of Clear Lake and the Highway 20 corridor, encompassing the Northshore redevelopment district. Regional connectivity to the Blue Ridge Berryessa Natural Area, Cow Mountain, Mt. Konocti and other significant regional recreational destinations will be integrated into the regional trails system, as opportunities arise.

The initial, land-based concept focuses on hiking, with the possibility of select areas of horseback riding and biking. Wherever possible, plans were to use low-impact existing trails, utility easements, fire roads or fire breaks located on public lands – such as High Valley Road – or on private lands of voluntary property owners.

To encourage economic development, the trails systems would link into local campgrounds, lodging, wineries and resorts, providing opportunities for boat rentals, vacation rentals, bed-and-breakfasts, eco/agri-tours, horseback rentals and restaurants.

To date, six of seven “envisioned” water loops – roughly 50 miles – have been mapped out along the Clear Lake shoreline, including Cache Creek, Rodman Slough, Anderson Marsh and Rattlesnake Island. Draft brochures are being circulated for review by end-users throughout the summer.

An overview “paddling” map depicting trail loops and public access points for Clear Lake is also being developed. Work will begin this winter to develop signage with a goal of launching the water trails program in the summer of 2009.

While several small trails projects are ongoing, planning and development of the land-based trails system will begin after a real-time mapping workshop this fall. The goal is to map Lake County destination spots, access points, existing and proposed trails, creating a framework that will help define the future Konocti Regional Trails System.

Links to all current trails/maps in Lake County, as well as PDF drafts and video of the proposed water trails is available at www.KonoctiTrails.com.

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Holly Harris and Chuck Lamb live in Clearlake Oaks and are volunteers with the Konocti Regional Trails System; they can be reached at 707-998-0135 or This email address is being protected from spambots. You need JavaScript enabled to view it..

Migrating American White Pelicans seen while paddling the Rodman Slough water trail, view of Northshore ridgeline in the background. Photo by Holly Harris.

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LAKEPORT – Following months of consideration, the Lakeport City Council in a special Tuesday afternoon meeting approved its fiscal year 2008-09 budget, which kept city services intact and didn't include any layoffs.

But the budget didn't receive the council's unanimous approval – Councilmen Ron Bertsch and Jim Irwin voted against adopting the budget. Irwin emphasized his belief that the budget was not sustainable and that the city needed to address its spending, which is larger than revenues.

City Manager Jerry Gillham, seeking to have the budget adopted before he leaves for a yearlong deployment with the Oregon National Guard in Iraq, said it was a “better budget than we ever imagined,” although he cautioned the year ahead will be a tough one.

The approved budget has $4.16 million in expenditures and $3.74 million in unencumbered general revenue income, with $423,000 in Measure I funds covering the difference, officials explained.

Councilman Roy Parmentier moved to accept the budget with Councilman Bob Rumfelt offering the second. Bertsch and Irwin asked for discussion before a vote was taken.

Irwin said he objected to using the Measure I funds – approved by city voters to put toward projects such as roads and the Westshore Pool – to cover city expenditures in the form of salaries and benefits. The budget, he said, wasn't sustainable.

During the last several months, the council and Gillham had been discussing options, some of them drastic, with a suggestion to cut police officer positions and public works staff among them.

“All those problems that we were talking about three months ago, they have not gone away, they are still there, and we haven't don't anything to change them,” said Irwin.

Responded, Gillham, “I don't necessarily agree with you.”

Gillham argued that it was too early to make any drastic decisions about layoffs or other cutbacks, because the city's financial picture was changing.

He explained that last year he had believed the city was $1.3 million in the hole, but the city actually ended the year $156,000 to the good. Helping the city was the sale late last year of the Vista Point Shopping Center property, which brought in about $1 million.

Finance Director Janet Tavernier has helped catch up the city's books, and once an audit is completed the city will have a clearer picture of its finances, said Gillham.

Irwin, however, argued that the city was continuing to live beyond its means and spend down its reserves, which he said wasn't wise.

Gillham said the city didn't get into tough financial straits in one year, and straightening it out couldn't be done in one year, either. He said there could be big changes ahead – he used the exampe of if a new retailer came to the city – that could drastically improve its financial outlook.

Rumfelt said Measure I can be used for general fund purposes in addition to the specific projects its advisory measure, J, laid out. “What I've been concerned about all along is we would lose track of the Measure I spending.”

Gillham emphasized the need to be fiscally responsible while constantly monitoring the city's finances and paying attention to fiscal trends.

He included in the budget a $400,000 line of credit which the city doesn't have to spend but which will give the city flexibility in case of an emergency. It boosted the city's estimated closing balance in June 2009 to $560,000, said Tavernier.

Gillham said the city could turn a corner in this coming financial year, so laying off three police positions and two public works staff didn't make sense.

Rumfelt asked Irwin if what he was asking for were layoffs.

“Yes, I am willing to look at layoffs,” Irwin replied, adding he'd also consider golden handshakes, or early retirement offers.

Irwin said he didn't have all the answers, but he said the city can't continue to outspend revenues by nearly half a million dollars annually. “That's no way to run a city.”

Rumfelt said he believed the city had come a long way in fixing its financial problems, but Irwin wasn't as optimistic about changing trends, noting that he sees the city continuing to trend downward when it comes to revenues.

Mayor Buzz Bruns said once the budget was adopted they could continue trimming and refining it. “Are you going to go another four months vacillating every day on this?” Bruns asked.

He said the council needs to let Gillham lead, with Irwin adding that oversight was needed.

“We can't micromanage it from here,” Bruns replied.

Gillham advised the council to accept the budget, get an annual audit completed and begin planning ahead for possible cuts in the future – including golden handshakes – based on how the city's finances are trending.

He said he and Redevelopment Manager Richard Knoll are meeting with a lot of developers who want to build projects in the city, which is a hopeful sign for possible future revenues.

Bertsch said he agreed with Irwin about the budget's imbalance. “I just don't see it getting any better.”

Parmentier said they needed to get a budget adopted and “get on with it.”

“To sit here and argue for another four months is ridiculous,” he said.

Rumfelt added that the budget isn't set in concrete. “We can modify the budget every two weeks if we choose to.”

Irwin wanted to revise Parmentier's motion to remove the $400,000 line of credit. Gillham, however, said if they did so they would have to do major budget revisions to add it back later should it become necessary.

When the vote finally was cast, Irwin and Bertsch were in the minority, voting no I a 3-2 vote.

2008-09 budget highlights

Lakeport Police Department's budget is $1.75 million, of which $1.44 million is salaries and benefits. The department's total budget is down slightly from $1.79 million in the last fiscal year and $1.85 million in 2006-07.

Public Works' budget is $2.77 million, up from last year's $1.3 million. That's largely because of big road projects, including a grant-funded Safe Routes to Schools Project for $549,860, $320,142 for the S. Main Street drainage improvement project and a storm damage repair project on Lakeshore Boulevard for $674,500.

The new budget includes $25,000 for animal control services, down from $53,964 budgeted each year over the last three years. The Lakeport Police Department has taken over animal control duties, which previously were conducted by Lake County Animal Care and Control in a contract with the city. The changeover to the police department is meant to save money.

The Westshore Pool, open for its second summer since being fully reconstructed, has $75,981 budgeted for its operation in 2008-09. That's down $98,587 from last year, during which time the budget still included some large improvement costs.

The Lakeport Redevelopment Agency's budget includes $5.3 million in total revenue, nearly eight times the revenue it had last year thanks to $4.21 million in bond proceeds, as opposed to $6,000 in bonds last year. Total operating expenses for the department are budgeted at $801,050.

The city's general fund revenues are projected at just over $6 million for the coming fiscal year; that's the $3.74 million in unencumbered general revenue income plus the $400,000 line of credit, grants and a total of $700,000 in Measure I revenues.

If that $6 million number proves accurate it will be part of an upward trend for general fund revenues in recent years.

In 2005-06 general fund revenues were $4.2 million, $4.7 million in 2006-07 and $5.8 million in 2007-08.

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