The council meeting will begin at 6 p.m. at Clearlake City Hall, 14050 Olympic Drive.

One of the first items for discussion involves developer impact fees, and whether the city should adopt them to expand public facilities to accommodate a growing population.

A report from City Administrator Dale Neiman said developers pay the fees so that existing residents don't subsidize new development. The Konocti Unified School District, Lake County Fire Protection District and Highlands Water Co. already have such fees in place, Neiman's report points out.

Had the city adopted such fees, since 1990 it would have had millions of dollars available for city improvements. Neiman's report includes a copy of the Lake County/City Area Planning Council study looking at regional transportation impact fees, which are proposed for the cities and county.

Neiman also is asking the council for direction on how city staff should proceed regarding the issue of having council meetings broadcast live on the PEG Channel, TV Channel 8. Televising the meetings has begun in recent weeks under the guidance of interim station manager Allen Markowski.

The council is being asked to decide if they want the meetings shown live and under what circumstances, according to Neiman's report. Planning Commissions also are proposed for broadcast; Neiman suggests the council consider that or turn the decision over to the commission itself.

His report also points out the need for appropriate wiring for the camera, a switch that can turn off the cable feed if an inappropriate remark is made, which Neiman suggests the mayor control. He's also asking the council to consider where they want the camera located and if they want signs posted saying the meeting is being broadcast.

Several items on the agenda are related to the Edgewater Village senior housing project, proposed by developer Global Premier Inc.

At a previous meeting Global Premier has requested a loan from the city to help it complete the housing project.

In a report on the proposal for Thursday night's meeting, Neiman is encouraging the council to make a $700,000 loan with a simple interest rate of 3 percent over 30 years.

By making the loan, Neiman said it will assist the city with making its state-mandated housing obligations. That's because the loan agreement would include affordability covenants on 154 units.

In concert with that proposal, Neiman is encouraging the council to approve submission of an application for a HOME grant from the California Department of Housing and Community Development. The city would receive the grant and then loan it to the developer to help finance the project.

Global Premier also is asking the city to abandon a portion of Hill Drive, which serves three parcels being merged as part of the project.

In other business, the council will hold a nuisance abatement hearing for property at 14865 El Camino Real, belonging to Anthony Lincoln. The property is reported to have become a public nuisance due to violations including refuse, abandoned vehicles, deteriorated structure and substandard wiring. A staff report from Code Enforcement Officer Lee Lambert said Lincoln has made no effort to solve the problem.

The council also is expected to designate voting delegates and alternates to attend the League of California Cities annual conference in September.

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The board voted 4-0 for the measure after hearing from Greg Bennett, Konocti Harbor's president and general manager, that the resort faces closure if it isn't sold.

Absent from the meeting was Supervisor Rob Brown, who had championed the February 2007 resolution, which was in response to a plan being floated by Kenwood Investments that included putting the resort into federal trust in order to facilitate an Indian gaming facility.

In a letter to the board dated June 21, Bennett asked the board to pass a resolution taking a position that it would be willing to “welcome a DISCUSSION, about ANY vision, with ANY buyer, willing to purchase one of Lake County's greatest assets” (capitalization as it appeared in the letter).

Bennett told the board Tuesday that UA Local 38 Convalescent Trust Fund, which has owned the resort for a half-century, has decided – “due to recent developments” – that it's time to sell the resort.

His letter explained that those recent developments included the settlement last year of a federal suit filed by the US Department of Labor, which had cited violations of the Employee Retirement Income Security Act.

The Department of Labor had alleged that the union spent millions – estimates have stated $36 million and above – from employee benefit funds to support the resort's operation, as Lake County News has reported.

Bennett told the board Tuesday that the union is no longer willing to spend the millions of dollars necessary to run or upgrade the resort. So, for the past three years, the trust fund has been seeking a “unique” buyer that will be willing to invest the tens of millions of dollars necessary to redevelop the resort.

The trust fund is in the middle of trying to sell the resort, said Bennett, and it's of “immense importance” to have the county work with them in order to succeed.

If they can't sell the resort, Bennett said Konocti Harbor will be shut down altogether.

Last year's resolution against gaming was seen by many potential buyers as a hindrance, said Bennett.

In speaking of potential buyers he likely was referring to Kenwood, which eventually dropped its plans to purchase the resort, to be followed by Page Mill Properties of Palo Alto, which also looked at buying the resort before passing.

Bennett said he was asking the county for a more “welcoming format” in order to get potential buyers to the table – “and hopefully stop any potential ownership closure of the resort.”

The board appeared both supportive and sympathetic.

“The new information for me is that the resort closure is imminent if a buyer isn't found,” said Supervisor Denise Rushing.

County Chief Administrative Officer Kelly Cox, who drafted the resolution, said it expressed the board's willingness to consider and discuss “any reasonable proposals” in relation to the county General Plan and the Rivieras Area Plan.

“It's been such a benefit to Lake County, we'd be nuts not to support something like this,” said Supervisor Jeff Smith.

Several members of the local business community – Bill Brunetti, Nancy Ruzicka and Lakeport Regional Chamber of Commerce Chief Executive Officer Melissa Fulton among them – supported the board approving the resolution.

Brunetti called the resolution “an invitation” to anyone interested in purchasing the resort.

Fulton said Konocti Harbor employs many local residents and pays a large amount of transient occupancy tax – or “bed tax” – which benefits the community. It also draws visitors who stay at other accommodations and support local business.

“The continued existence of Konocti Harbor Resort as a viable destination resort is paramount to the future of this county,” Fulton said.

Finley resident Phil Murphy questioned if the new resolution negated the one passed in February 2007. “It seems like the wording conflicts with what you passed previously,” he said.

Cox suggested it didn't rescind the last one, but merely expressed the board's most current position.

However, County Counsel Anita Grant said Murphy made a good point, and she suggested that the new resolution should rescind the old one in order to avoid setting up a conflict. The version of the resolution the board accepted included an amendment to that effect.

Murphy further asked if the resolution might not set a precedent and invite other groups and businesses to seek similar support. He said the county should consider everything on its merits.

Board Chair Ed Robey agreed, saying the county is obligated to consider all proposals. Cox said the resolution was only coming forward because of the board's action last year.

Rushing suggested the resort – which she called “an economic engine for the community” had reached the point when it was becoming a redevelopment project.

Supervisor Anthony Farrington said he was excited about the resort's potential.

As to whether or not an actual buyer is in the wings, Bennett didn't address that issue Tuesday, and did not return a call from Lake County News following the meeting seeking comment. Calls to Jim Bishop, managing director for WhiteStar Advisors of Boca Raton, Fla. – the court-appointed independent fiduciary that is helping manage the resort – also were not returned Tuesday.

Brown says he won't support gaming

Cox told Lake County News after the meeting that the February 2007 resolution grew out of concerns “that a certain potential buyer of Konocti was not being completely candid about his future plans and that an effort might have been under way to place the resort property in federal trust status while completely bypassing county government and ignoring local concerns.”

He was referring to Darius Anderson of Kenwood Investments, who had spoken with local tribes in an effort to broker a deal to place an Indian casino there.

Jim Brown of the Elem Colony told Lake County News last year that Anderson had assured tribal representatives that, due to his contacts with the state's leading Democrats, he could get the plan fast-tracked and completed in a minimum of five years.

Cox said the resulting resolution, however, was “incorrectly interpreted by other potential investors to mean that the county was generally not supportive of Konocti and that the Board of Supervisors would be very difficult to work with.”

That wasn't the intention, he said, adding that the board wants to see the resort be as successful as possible in relation to the county's General Plan and the Rivieras Area Plan.

Cox emphasized that the resolution isn't a guarantee that the county would ultimately support any plan that a potential buyer might submit. It basically indicates a willingness to sit down at the table, which he called “a minimum basic courtesy” that he believes anyone is entitled to from their elected representatives.

No decisions would be made, he said, without first having public hearings and public input.

Brown had jury duty and so didn't attend Tuesday's meeting. He said he was unable to delay appearing for jury duty because he already had asked for leave from two previous jury summonses.

Contacted after the meeting for his reaction, Brown said he supported the resort but said he didn't want gaming there – “no matter what.”

“There are a lot of things to explore before gaming would ever be a consideration,” including different types of housing, Brown said Tuesday evening.

He said in his discussions with Bennett, no active buyer was mentioned. Brown said he and Cox had, however, met with Page Mill Properties representatives when they were considering buying the resort last year.

Cox also said Bennett didn't indicate that a sale is currently under way.

In explaining her vote for the resolution after Tuesday's meeting, Rushing said the the resort needed help being viable.

“What we knew this year that we didn't know last year is that they are at the end of their rope,” she said.

She reiterated her belief that the resort needs to be redeveloped.

Concerning redevelopment, Cox said Konocti Harbor hasn't approached the county about redevelopment help to the best of his knowledge. Even if they did, Cox said they wouldn't be eligible because they're not located in the redevelopment project area, which is on the Northshore.

Cox said when the resolution against gaming at the resort was adopted last year, the county was concerned that the process being pursued – putting the resort into federal trust – was cutting out the community and its concerns.

“It should be clear to everyone now that such an approach is unacceptable and if it were to be proposed again it would likely meet the same opposition and same result,” he said.

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The meeting begins at 9 a.m. in the Board of Supervisors chambers at the Lake County Courthouse, 255 N. Forbes St., Lakeport. TV Channel 8 will broadcast the meeting live.

At 10:15 a.m., Greg Bennett, president and general manager of Konocti Harbor, is expected to give the board an update on the resort, which has been actively listed for sale for more than a year by its owners, Local 38 Convalescent Trust Fund, which has owned the property for more than 50 years.

The board also will consider a request for a resolution supporting the resort and expressing the willingness to enter into discussions with potential new owners regarding its future operation and development opportunities.

Early in 2007, faced with Kenwood Investments' proposed purchase of Konocti Harbor and plans to open an Indian casino at the resort, the Board of Supervisors passed a resolution opposing the proposal.

Kenwood eventually dropped its offer. Then, last spring, Page Mill Properties of Palo Alto considered purchasing the resort for a reported $25 million, but late last year that sale possibility also evaporated, as Lake County News has reported.

The resort currently is being overseen by WhiteStar Advisors of Boca Raton, Fla.

The company, which has been working to help sell the resort for the last few years, was appointed the resort's independent fiduciary by a federal court last year as part of a settlement agreement between Local 38 of the United Association of Plumbers, Pipefitters and Journeymen and the US Department of Labor.

The Department of Labor sued the union in 2004 for diverting more than $36 million from employee benefit trust funds to run the resort.

Last December, the resort was relisted, with no selling price, with Atlas Hospitality of Irvine. For sale was the 58-acre resort, with 255 guest units, a 100-boat slip marina, a 5,000-seat amphitheater, 20,000 square feet of meeting space, a 1,000-seat indoor showroom and a 19,000-square-foot spa.

In the spring, Atlas' listing deadline for accepting offers on the property passed, after which time the company referred all inquiries about Konocti Harbor back to WhiteStar.

WhiteStar has not responded to Lake County News' repeated requests for an update on the resort's sale status.

The following items also are scheduled for the Tuesday meeting.

Timed items:

– 9:15 a.m.: Presentation of proclamation recognizing the 50th anniversary of the Sierra Club’s Redwood Chapter.

– 9:45 a.m.: (a) Recognition of the Geysers Air Monitoring Program (GAMP) for 25 years of service; (b) Update on the internet access of realtime data and e-mail alert services; and (c) Recognition of Guidance Committee Members for designing of the GAMP Internet Program.

– 11:15 a.m.: Hearing on an appeal of a vicious animal abatement order, located at 5012 Blue Court, Kelseyville (Frances Layton).

– 1:30 p.m.: Presentation of proclamation commending Beverly Bresso on her retirement from County Service

– 1:45 p.m.: Closed session for an employee appeal of a disciplinary action.

Untimed items:

– Discussion/consideration of Amendment No. 3 to Agreement between the County of Lake and California Engineering Co. for restoration of the Clearlake Oaks Plaza.

– Consideration of request to purchase two vehicles for the purpose of providing patient transportation to psychiatric facilities (funding received from the Sutter Foundation in the amount of $50,000).

– Consideration of recommendation for award of bid for the 2008 Aquatic Weed Spraying Program.

– Consideration of request to award Bid No. 08-30 to Richardson Engineering in the amount of $279,000 for Sodium Hypochlorite storage and feed system improvements at the Middletown Wastewater Treatment Plant.

The board also is scheduled to hold a closed session for labor negotiations and to discuss one potential case of litigation.

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The Lakeport City Council discussed the park lease proposal at its Tuesday meeting.

City Attorney Steve Brookes presented the issue to the council. He explained that the proposed lease agreement with Westside Community Park Inc. would allow the group to develop the park through the use of volunteer help and private funds, and on their own timeline.

While that could be a plus for the city, which has reported it's short on funds, it also would mean a loss of control of the land, said Brookes. If the quality of improvements aren't up to the public's expectations, that also could be a problem for the city.

Group Chair Ron Raetz said the group wants to move forward with the park's second construction phase.

"The park's 11 years old now," said Raetz.

Two years into the park's construction, Raetz said the city began "digging in its feet" due to concerns over some of the committee's work on the park, although he didn't specify the exact issues.

For the last seven years, the groups has been preparing for construction of phase two, said Raetz. "We'll do whatever it takes so we can finish this park."

Raetz said the committee just cleared more than $25,000 in a fundraiser. "So we're ready to go."

He said he hadn't yet seen a copy of the agreement, which Brookes said was because he was waiting for the council's approval before offering the draft agreement to Raetz.

Brookes said the draft lease agreement includes a stipulation requiring the group to take over the park's daily maintenance.

Councilman Ron Bertsch suggested making the lease term for three years rather than one, since it's hard to make progress in a year and a shorter duration could cause difficulties when seeking grants.

Various lease amounts were discussed, from $1 a month to $1 a year.

The council liked the idea of letting the group lead the park's development, and gave Brookes direction to continue working on the draft lease and give Raetz a copy to consider. City Manager Jerry Gillham also wanted to know if the group would be willing to take over the entire park, a consideration which wasn't pursued during the meeting.

Gillham commended Raetz for the amount of work he does on behalf of the park.

Following the council meeting, Public Works Director Doug Grider explained that Westside Community Park's second phase includes a new soccer field and baseball fields directly to the south of the new subdivision located there. A third phase with a skateboard park and BMX park is also planned.

He said the cost to maintain the current park's phase one is between $5,000 and $7,500 annually, including caring for the soccer fields – using fertilizer, watering and replacing sprinkler heads – and other necessary maintenance.

Most of the costs are for equipment, he said.

“The man hours aren't that great,” said Grider, estimating it requires between eight and 12 hours per week, a number that fluctuates according to the season.

Phase two, however, could have more substantial maintenance costs, he said.

Any savings of money or employee hours could help Grider's department, which may lose two park employees in the coming budget year due to the city's tight finances.

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A delegation of local Sierra Club leaders, led by Chapter Vice Chair Victoria Brandon, looks forward to accepting this honor from the board.

The Redwood Chapter was formed in 1958 as one of the Sierra Club's first regional entities; it includes more than 25,000 square miles within nine counties in northwestern California stretching from the Oregon border to San Francisco Bay, and now has more than 10,000 members divided into six local Groups of which the Lake Group is the newest (established 2001) and smallest.

The conservation objectives of both the chapter and the group encompass forest preservation, protection of free-flowing rivers and their watersheds, sensible growth management, the preservation of open space and agricultural land, and creative approaches to the human and ecological conundrums caused by global climate change.

The chapter's achievements in the past 50 years include the passage of the Coastal Act, creation of Redwood National Park, design and construction of the Coastal Trail, designation of many federal Wilderness Areas including the Snow Mountain and Cache Creek Wildernesses here in Lake County, designation of numerous federal and state Wild and Scenic Rivers including Cache Creek, preservation of the Headwaters Forest, design and implementation of conservation management strategies on public lands throughout the region, and development of recovery plans for endangered and threatened species.

Recent legislative achievements include the passage of the state Cache Creek Wild and Scenic River Act in 2005 and federal Northern California Coastal Wild Heritage Wilderness Act in 2006.

The chapter also conducts a comprehensive outings program, which has organized more than 6,000 hikes, nature walks, canoe trips and backpacking journeys within the region and elsewhere in California, as well as hundreds of trail-building projects and other service activities, with more than 50,000 participants during the past 50 years.

More information about the Redwood Chapter is available on their Web site, http://redwood.sierraclub.org.

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The Westshore Pool, shortly after its reconstruction was finished last year. Photo courtesy of Scott Harter.

LAKEPORT – A discussion at Tuesday night's Lakeport City Council meeting about funding for the city's Westshore Pool upset Channel Cats swim team members and leaders when the city manager made an impromptu suggestion to close down the pool altogether in light of budget constraints.

City Manager Jerry Gillham made the remark during an agenda item concerning a $24,000 match of a state Parks and Recreation grant for which the Channel Cats were being held responsible.

He said Wednesday that he made the statement to communicate the gravity of the city's fiscal situation.

Many swim team members – including children still in their swim suits – and their parents sat through most of the lengthy meeting, which began with a discussion on halting safe and sane fireworks sales and use in the city this year due to fire concerns. The Channel Cats are one of four groups that voluntarily agreed not to sell fireworks, which will mean they'll lose more than $10,000 in revenue.

In the face of losing their fireworks money, the Channel Cats learned this week that they were expected to pay $24,000 toward the pool's repairs as part of a state grant match requirement, Channel Cats President Jennifer Hanson told Lake County News on Wednesday.

The group hired a grant writer to write a grant on behalf of the city in 2004 in order to rehabilitate Westshore Pool. The $168,000 grant included a requirement for a $24,000 match from a private entity, which the club is in no position to make at this time, Hanson said.

City Engineer Scott Harter said he met with a state representative last month to close out the grant paperwork.

The Channel Cats had made $30,000 in other, in-kind improvements, including purchasing and installing a furnace, and buying pool covers and a pool cleaning system.

Harter asked the state representative if that work and the purchases could cover the $24,000 match; the response was no, since the original scope of work hadn't included those items.

However, the state has indicated they will grant a request to waive the match requirement, said Harter, who was seeking the council's direction on what they wanted him to do.

If the waiver is granted, it would mean the city would not receive those funds, said Harter. All of the repairs to the pool – which cost just over $380,000 to complete – have been covered between the state grant and more than $212,000 in city funds.

Hanson and Channel Cats Board member Kay Irvine spoke to the council on behalf of the club, asking for the waiver.

With the fireworks sales gone, Hanson said the club still needs to pay the city $8,000 rent for the pool this summer season.

"We do not have $24,000," Hanson said.

Hanson said it was their understanding that the $30,000 in in-kind work and donations did count for their match, only finding out on Monday that it didn't.

The current team is the largest in the club's history, with more than 140 swimmers, said Irvine.

Irvine added, "There's not a lot of positive things to do for the children in Lake County."

The council voted 4-1 – with Councilman Jim Irwin voting no – to seek the waiver from the state and, in the case it's not granted, to bill the club.

Public Works Director Doug Grider told the council he's working with Supervisor Anthony Farrington on a request to the county for funding help for the pool this fiscal year.

After the council's vote, Gillham turned to the audience of club members and asked if the Channel Cats would take over operating the pool.

"Will you help us with the money?" asked one woman.

"No," Gillham replied.

He added, "My proposal is going to be to close it down."

It was a statement that elicited upset reactions from parents. "You want our kids on the streets?" a woman asked.

Hanson said they didn't have $24,000, much less the funds at this point to run the pool.

Gillham replied that he was looking for a "win-win" situation.

He told the council later in the meeting that he had wanted to "test the waters" to see if the club was willing to take the pool. If the city can't get help from other sources to run the pool, Gillham repeated that he would suggest dropping the pool's operations.

Group angry over statements about pool closure

Gillham told Lake County News on Wednesday that the Tuesday night meeting wasn't the first time he had asked the group about taking over the pool. “I'd actually talked to them before, last year at this time, to convince them to take over the pool, because of where we are financially.”

He said his statements Tuesday were stimulated by the council's decision to seek an agreement with the Westside Park Committee in which that group would take over phase two of the park's operations, making future improvements and being responsible for maintenance. The group has raised money for improvements which the city doesn't have.

Gillham said his comments stemmed from the city's current budget difficulties. “I did it for a reason – to let everyone in this community understand that the shortfalls we have are going to result in some difficult situations.”

But Gillham's statements may have had an unintended consequence.

“The community should know that I have 200 families that are upset now,” Hanson said Wednesday.

She said she, too, was still upset by the discussion, which caught her off guard.

To close the newly repaired pool would mean the loss of an important asset for the community, she said. The pool saves lives by teaching children to swim, is used by the Kelseyville and Clear Lake High swim teams, and its swimming programs have helped gain some of its members swimming scholarships, said Hanson.

But the pool isn't just for children. “We help everybody, from 3 to 80.”

She added, “It was shocking to even hear him say they would consider closing that pool.”

News of Gillham's comments spread quickly among the Channel Cats families, she said. At the Wednesday night swim, parents and children alike came to ask her if the pool was being closed.

As city manager, Gillham said it's his job to preserve services at the highest level possible, with public safety, water, sewer and streets coming before the pool.

Last year the pool cost the city $90,000 to operate, this year costing $76,000. “That's a police officer,” he said.

He expects to have a budget to the council this month, before he leaves for a deployment in Iraq with the Oregon National Guard.

Gillham said he's not made a decision about what he'll propose the city do about the pool.

“I'm telling you all possible scenarios are out there,” he said, with staff putting together “cutback packages” to look at how they might save up to $500,000, the latest number for the city's budget shortfall.

Hanson said she and the club members are talking about different ways to approach the pool situation.

“We want to save this pool,” she said.

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