LAKEPORT, Calif. – The Board of Supervisors on Tuesday approved a preliminary 2016-17 county budget, with plans to approve the final budget document in September.

As the 2015-16 fiscal year comes to an end, the county and two cities are working on their final budget documents.

In addition to the Tuesday discussion by the supervisors, on Tuesday night the Lakeport City Council unanimously approved the city's new fiscal year budget, and the Clearlake City Council will hold its final budget discussion this Thursday.

Unlike the cities, which generally have their new budgets in place by the July 1 start of the new fiscal year, the county Board of Supervisors typically approves a “recommended” budget first before holding a late summer hearing for the purpose of approving the final budget.

County Administrative Officer Carol Huchingson called the budget document approved Tuesday a “placeholder,” which the board needed to approve to follow statutory requirements while the budget is finalized. The final budget hearing is scheduled for Sept. 14.

Huchingson is now two and a half months into her job as county administrative officer. While she's no stranger to big budgets – having previously led the county's Social Services Department – she nonetheless relied on her staff, departments heads and assistance from Kelly Cox, who retired as county administrative officer in 2012, for help in putting together her first countywide budget document.

“All of us agree without hesitation that 16-17 is one of the most challenging fiscal years that we've ever seen,” she said.

That is due to a number of reasons, which Huchingson would go on to explain rested largely with the recovery and impacts of last year's Valley fire.

The recommended budget totals approximately $214,675,657, which Huchingson said is an increase of $10.8 million over the current 2015-16 fiscal year budget. That total includes $12 million for disaster recovery.

The general fund's appropriations total $53,448,936, and are down “pretty dramatically” – to the tune of $6.6 million – from fiscal year 2015-16, Huchingson said.

Huchingson said the county will start the 2016-17 fiscal year with a much lower baseline than in prior years. “This is for several reasons.”

Those reasons include general fund monies used in 2015-16 for cash flow in responding to the fire, a 3-percent cost of living adjustment for county staff – the first approved in nearly a decade – plus finalizing large projects like the renovation of the former Gard Street School for county offices, she said.

Contingencies also are less than $1 million, the lowest in close to 15 years, Huchingson said. Contingencies had dipped during the recession “but not to this extent.”

Low contingencies are the result of $1 million advanced for disaster response operations and $300,000 set aside a few months ago for hiring new building inspectors, she said.

Reserves also are low due to the board giving county Auditor-Controller Cathy Saderlund the authority last year to cancel up to $5 million to manage cash flow brought on by federal recovery projects, with the county anticipating reimbursement.

Those reserves haven't actually had to be canceled, but Saderlund needs to continue to have that authority, with Huchingson adding that the goal is that the need to put those reserves on the line will be done by the end of the new fiscal year.

County Assessor-Recorder Richard Ford made the decision to seek approval for an extension of the tax roll, hoping that he will be able to provide better estimates for the final budget, she said.

County staff are estimating property tax will remain stable, and Huchingson said the new state budget includes funds to backfill the county's property tax losses, for which she thanked Gov. Jerry Brown, state Sen. Mike McGuire and Assemblyman Bill Dodd.

In looking at sales tax revenue, Huchingson said it is difficult to estimate, as those revenues went way up this fiscal year due to the fire recovery. She also expects recording fees will jump.

As a result, Huchingson said there are “a lot of moving targets here in this budget.”

Huchingson said general fund appropriations in the new fiscal year budget are about $3.2 million lower than the current year due to such impacts as the closure of the county's juvenile hall and efforts by county department heads to reduce their proposed budgets.

Overall, she said county spending levels are consistent with prior years.

The recommended budget contains funding for ongoing capital projects including the South Main Street Water System Project in Lakeport, the Clearlake Oaks sidewalk project, the jail expansion, upgrades to ensure ongoing operations and security of data systems and seismic retrofitting of the Lower Lake Schoolhouse Museum, more than $10 million in road repair and bridge replacement projects, the Kelseyville Skate park and other park improvements, as well as new projects resulting from the Valley fire, such as water and wastewater system development or upgrades, according to Huchingson's report.

Huchingson also briefly went over various position allocations for the departments.

In summing up, she told the board, “Our financial circumstances are very serious. We're facing a number of challenges.”

She said her staff worked closely with department heads to get the budget to this point, and they've already made significant reductions. Staff counted up 500 entries to reduce the budget so far.

With many revenue sources not finalized, however, Huchingson said they were hoping the fiscal picture will improve by the time the final budget is presented to the board in September.

In the meantime, Huchingson said they are not urging any further reductions, which could impact the local economy and the county government's service levels.

She said the county's informal hiring freeze will continue in departments paid for by the general fund.

As bleak as her report sounded, Huchingson told the board that the county has managed to maintain the economic stabilization reserve fund, which has an $825,000 balance. Those funds could be used in future fiscal years to offset property losses from the Valley fire.

“So we're looking at a plan, really, of very conservative budgets for the next two to three fiscal years while we regain the ground that has been lost due to the unprecedented disaster,” Huchingson said.

She ended by thanking all of the county's department heads. “We just couldn't have reached this point without their cooperation and support.”

Board Chair Rob Brown recognized the situation Huchingson has encountered in her first months on the job, and called her efforts remarkable.

Moving forward, he suggested the county needed to look at its fee structure, and suggested some cuts, including the supervisors' mileage reimbursements.

During the brief discussion of the budget document, board members acknowledged the challenges the county is facing, and that they were being forced to do much more with much less.

“I want the county to thrive, and I think we will, but we will only do that if we get through this and follow these recommendations,” said Brown.

Supervisor Jim Steele said he saw department heads working together on the budget, which isn't always common among staffers who have to compete for the same dollars.

In four separate votes, the board unanimously approved the recommended budget, authorized department heads to proceed with purchasing selected capital assets and filling selected new positions prior to the adoption of the final 2016-17 budget, adopted the proposed resolution establishing new classifications and amending the position allocation chart for fiscal year 2016-17 to conform to the recommended budget, and adopted the resolution canceling general reserves for fiscal year 2016-17.

Supervisor Anthony Farrington was absent for the discussion and votes.

Email Elizabeth Larson at This email address is being protected from spambots. You need JavaScript enabled to view it. . Follow her on Twitter, @ERLarson, or Lake County News, @LakeCoNews.

LAKEPORT, Calif. – The Board of Supervisors this week will consider adopting the recommended budget for the next fiscal year and discuss a request from Hoberg's Resort for delayed payment on dump fees.

The board will meet beginning at 9 a.m. Tuesday, June 21, in the board chambers on the first floor of the Lake County Courthouse, 255 N. Forbes St., Lakeport.

The meeting can be watched live on Channel 8 and online at http://www.co.lake.ca.us/Government/Boards/Board_of_Supervisors/calendar.htm . Accompanying board documents, the agenda and archived board meeting videos also are available at that link.

In an untimed item, the board will consider the Fiscal Year 2016-17 Recommended Budget. The final budget won't be adopted until later this summer during a special hearing.

In presenting her first county budget to the board, County Administrative Officer Carol Huchingson drew on the experience of Kelly Cox, the retired county administrative officer who managed to keep the county in the black for decades, with Cox reviewing the proposed budget.

“All involved agree without hesitation that Lake County is facing one of its most challenging fiscal year ever, for many reasons detailed herein,” she said.

Much of that is a result of the Valley fire, with the county facing high recovery costs while also losing revenue through different sources such as transient occupancy tax – or bed tax – as well as cable franchise fees and geothermal resource royalties, based on the budget document.

Huchingson said in her report that recommended appropriations are $214.6 million, an increase of $10.8 million over the current fiscal year. Of that total, $12 million is for disaster recovery, she said.

In other business on Tuesday, in another untimed item, Public Services Director Lars Ewing will ask the board to consider a request to deviate from the Eastlake Landfill Customer Charge Account Policy for the Hoberg’s Resort cleanup.

In his report Ewing said the resort has applied for a repayment plan. Specifically, the resort is seeking a 54-month interest-free account repayment plan, with the first payment to the county to be made six months after the debris is hauled to the landfill. That will be followed by 48 equal monthly payments.

Also on Tuesday, at 9:10 a.m. the board will present a proclamation commending Water Resources Engineer Tom Smythe for his retirement after 28 years of service to the county.

At 9:15 a.m. the board will consider continuing the proclamation of a local health emergency by the Lake County health officer in response to the Valley fire, and at 9:20 a.m. receive the presentation of the 2015 Crop Report.

The full agenda follows.

CONSENT AGENDA

7.1: Adopt proclamation commending Tom Smythe, Water Resources Engineer, upon his retirement for his 28 years of service.

7.2: Approve the first amendment to the agreement between Willow Glen Care Center and county of lake for adult residential support services and specialty mental health services for fiscal year 2015-16, for a decrease of $90,000 and a new contract maximum of $15,000, and authorize chair to sign.        

7.3: Adopt resolution amending Resolution No. 2015-119 to amend the adopted budget for FY 15-16 by adjusting revenues and appropriations in Budget Unit 2703 - Animal Care and Control.

7.4: Approve agreement between the county of Lake and Calserve Inc. for process services for FY 2016/2017 in an amount not to exceed $25,000 per year and authorize chair to sign.          

7.5: Adopt resolution approving the purchase of fee title on a portion of a certain parcel (APN 035-163-260) as part of the Clearlake Oaks Safe Routes to School Project, and authorize the county administrative officer or the Public Works director to execute the necessary documents.          

7.6: Adopt resolution approving the Lake County Sheriff's Office to apply for the state of California, Department of Parks and Recreation Off-Highway Vehicle Grant Funds.     

7.7: (a) Waive the formal bidding process, per Ordinance #2406, Purchasing Code 38.2, making a determination that competitive bidding would produce no economic benefit to the county; and (b) authorize the sheriff/coroner/assistant purchasing agent to issue a purchase order to IFE Distribution for the purchase of kitchen equipment for the Lake County Jail/Hill Road Facility, in the amount of $61,437.49.

7.8: Approve first amendment to contract between county of Lake and Fiscal Experts Inc. (Web-based time study buddy service) for FY 2016-17 not to exceed $27,600 and authorize chair to sign.          

7.9: Adopt resolution appropriating unanticipated revenue to Budget Unit 8467, Bonanza Springs Water - CSA #7 for reconstruction of water system and authorize the chair to sign.

7.10: Adopt Resolution appropriating unanticipated revenue to Budget Unit 8478, Starview Water CSA #18 for reconstruction of water system and authorize the chair to Sign.   

7.11: Adopt resolution appropriating unanticipated revenue to Budget Unit 8353, Middletown Sanitation District for repair of treatment plant and authorize the chair to sign.

7.12: Approve budget transfer for Budget Unit 1122 – Treasurer-Tax Collector from Acct. 711.23.80 Professional and Specialized Services to Acct. 711.62.79 Prior Years – Capital Assets in the amount of $46,769.92 for the purchase of RT Lawrence tax payment processing software and authorize the chair to sign.

7.13: (a) Waive the competitive bidding process due to the unique and proprietary nature of the remittance processing software; and (b) authorize the assistant purchasing agent to issue a purchase order to RT Lawrence Corp. for hardware, software, training and annual support in the amount of $46,769.92.   

7.14: Sitting as Lake County Watershed Protection District, Board of Directors, approve agreement for levee mowing services between the Lake County Watershed Protection District and Bohan & Canelis General Engineering for a contract maximum of $14,749.44 and authorize the chair to sign.          

TIMED ITEMS

8.2, 9:10 a.m.: Presentation of proclamation commending Tom Smythe, Water Resources engineer, upon his retirement of 28 years of service.     

8.3, 9:15 a.m.: Consideration of continuing the proclamation of a local health emergency by the Lake County health officer.     

8.4, 9:20 a.m.: Presentation of 2015 Crop Report.

8.5, 9:30 a.m.: Public hearing, consideration of proposed final map for Lake Vineyard Estates Subdivision to divide approximately 12.99 acres into six parcels and Use Permit (UP 07-02) to allow lots to exceed the length to width ratio limitations; project location is 8245 Point Drive, Kelseyville (APN 044-331-23); applicant is Dennis De La Montanya.

8.6, 9:45 a.m.: Hearing, consideration of notice of nuisance and order to abate for property located at 55 Old Long Valley Road, Clearlake Oaks (APN 006-500-10 -Fred Boniello).

UNTIMED ITEMS

9.2: (a) Consideration of Fiscal Year 2016-17 Recommended Budget; (b) consideration of proposed resolution establishing FY 2016-17 position allocations to conform to the recommended budget; (c) consideration of creation of new classifications; (d) consideration of authorization for affected department heads to proceed with purchasing selected capital assets and filling new positions prior to the adoption of FY 2016-17 Final Recommended Budget; and (e) consideration of proposed resolution canceling general reserves for FY 2016-17.

9.3: Consideration of (a) approval of health plan-provider amendment No. 1 to the agreement between Partnership Health Plan of California and the county of Lake for Lake County Behavioral Health; (b) approval of intergovernmental agreement regarding transfer of public funds between the California Department of Health Care Services and the county of Lake for Lake County Behavioral Health; and (c) approval of the agreement for the intergovernmental assessment fee between the California Department of Health Care Services and the county of Lake for Lake County Behavioral Health; and authorize the interim Behavioral Health director to sign agreements.  

9.4: Consideration of a resolution approving a grant agreement and certification statement between county of Lake Health Services and California Department of Public Health for the Supplemental Nutrition Assistance Program Education (SNAP-ED) in an amount not to exceed $600,000 for federal fiscal years 2016 through 2019, and authorizing the board chair to sign said certification.

9.5: Consideration of request for deviation from Eastlake Landfill Customer Charge Account Policy for Hoberg’s Resort cleanup.

9.6: Consideration of award of bid and approval of contract for Lake County Fire Damaged Metal Beam Guard Rail Replacement Project, Lake County, CA Bid No. 15-17, to Dirt and Aggregate Interchange, Inc., in the amount of $449,695 and authorize the chair to sign agreement and notice of award.     

CLOSED SESSION

10.2: Conference with legal counsel: Significant Exposure to Litigation pursuant to Gov. Code Sec. 54956.9 I(d)(2)(e)(1) – One potential claim.     

10.3: Conference with legal counsel: Existing litigation pursuant to Gov. Code Sec. 54956.9(d)(1): Smith v. County of Lake, et al.

10.4: Conference with legal counsel: Existing litigation pursuant to Gov. Code Sec. 54956.9(d)(1): Harris v. Lake County, et al.      

10.5: Public employee evaluations: County librarian.

Email Elizabeth Larson at This email address is being protected from spambots. You need JavaScript enabled to view it. . Follow her on Twitter, @ERLarson, or Lake County News, @LakeCoNews.

LAKEPORT, Calif. – The Lakeport City Council is set to discuss adopting the city's 2016-17 budget at its meeting this week.

The council will hold a closed session beginning at 5:30 p.m. Tuesday, June 21, to discuss labor and property negotiations before the open portion of its regular meeting begins at 6 p.m. in the council chambers at Lakeport City Hall, 225 Park St.

City Manager Margaret Silveira will present to the council the 2016/17 budget at the Tuesday meeting.

The proposed budget includes $13.8 million in recommended revenue and $20.8 million in proposed expenditures.

Silveira said in the coming fiscal year the city is looking to build on the transformation process that she said has been taking place over the last several years. She said the operating budget she is proposing is balanced.

She is recommending the city pursue several key capital projects, including completion of the Bevins Street project, the Downtown Main Street Revitalization Project, the Lakeshore Storm Damage Rehab Project, structural modification to the new Lakeport Police Department, the Carnegie Library Americans with Disabilities Act Project and ceiling repairs, and replacement of police cars.

“The capital outlay plan that I have proposed unfortunately is not sustainable with ongoing resources beyond this upcoming year and is funded almost entirely out of one-time sources, including long-term, low-interest loans and grants,” Silveira said in her report. “It does not result in a reduction of spending elsewhere.  No new additional staff are expected to be needed to complete these projects, as most of the work will be done by outside contractors.  Nonetheless, it is a critical investment for us to make in addressing our aging infrastructure and to support our efforts to grow our local economy.”

In other business, the council will receive the newly released annual report, conduct public hearings and adopt proposed ordinances regarding delinquent water and sewer charges, and hold a hearing and adopt the proposed resolution amending Resolution 2486 (2013) and Resolution 2478 (2013) establishing sewer rates, fees and charges to delay the date of monthly service charge increases.

The council also will consider approval of a new classification for a Public Works director/city engineer with a salary range Exempt 5 earning $7,542 to $9,167 per month, and receive and file the 2016 Illegal Fireworks Police Operation Plan.

On the meeting's consent agenda – items considered noncontroversial and usually accepted as a slate on one vote – are ordinances; minutes of the regular Lakeport City Council meeting on June 7 and the special meeting on June 7; the June 8 warrant register; Application No. 2016-016 with staff recommendations for the Kiss My Clear Lake Bass event to be held in Library Park, on July 24; approve amendment to Application No. 2016-002 for the Lakeside Car and Boat Show to reserve parking in the lot adjacent to City Hall; Application No. 2016-017 with staff recommendations for the Shakespeare by the Lake event; adoption of the proposed ordinance adding Chapter 5.24 of Title 5 of the Lakeport Municipal Code regulating solicitation; and approval of an amended memorandum of understanding with Bicoastal Media for the production of the Summer Concert Series.

Email Elizabeth Larson at This email address is being protected from spambots. You need JavaScript enabled to view it. . Follow her on Twitter, @ERLarson, or Lake County News, @LakeCoNews.

062116 Lakeport City Council agenda packet

062116 Lakeport City Council - Proposed budget

LUCERNE, Calif. – District 3 Supervisor Jim Steele will host a special town hall meeting in Lucerne next week to discuss proposed amendments to Lake County's medical marijuana cultivation rules.

Community members are invited to the town hall, which will be held beginning at 6 p.m. Wednesday, June 29, at the Northshore Community Center – formerly the Lucerne Alpine Senior Center – located at 3985 Country Club, at the corner of 10th and Country Club.

Steele's purpose in hosting the town hall is to discuss changes proposed by the county's Medical Marijuana Ad Hoc Committee to Article 72 of the Lake County Code, otherwise known as Measure N, which went into effect in 2014.

The Board of Supervisors hosted a lengthy discussion at its June 7 meeting on the proposed changes, which will include the addition of a permitting and taxing process for medical marijuana.

Officials said that process is meant to fit with the regulatory structure the state is implementing as a result of the Medical Marijuana Regulation and Safety Act, which the Legislature enacted last fall.

At the end of its June 7 discussion the Board of Supervisors referred the matter to the Lake County Planning Commission for further review and discussion.

The commission is due to hear the proposed amendments in July.

Sheriff Brian Martin will be a featured speaker at the June 29 town hall, and will address the committee's recommendations.

He is a member of the Medical Marijuana Ad Hoc Committee along with Supervisor Rob Brown, Supervisor Anthony Farrington, District Attorney Don Anderson, County Counsel Anita Grant, Agriculture Commissioner Steve Hajik, Health Services Director Jim Brown and Scott De Leon, the Public Works director who has served as Community Development Department director on an interim basis.

For more information, contact Supervisor Steele at 707-295-6198 or This email address is being protected from spambots. You need JavaScript enabled to view it. .

Email Elizabeth Larson at This email address is being protected from spambots. You need JavaScript enabled to view it. . Follow her on Twitter, @ERLarson, or Lake County News, @LakeCoNews.

MIDDLETOWN, Calif. – The Middletown Area Town Hall's members this month considered whether to make changes to the organization's bylaws relating to board membership.

MATH has previously held some discussions on a proposal to change the organization's bylaws so that board members would be elected from districts. The matter was brought up for a formal discussion at the June 9 meeting.

Linda Diehl-Darms had asked for the matter to be placed on the June meeting agenda. The discussion begins just before the 47:24 mark.

She said Cobb Mountain residents are now forming their own municipal advisory committee – similar to MATH – and she suggested boundary changes for MATH to take that new group into account.

“If they're having their own group, I think it's important that we respect that,” she said.

When MATH was formed in 2006, board members were elected from districts, Diehl-Darms said.

Those early districts had included an area along Butts Canyon Road to the county line and a district that stretched from the county line south to the rancheria, both of which had one member on the board, plus three members from Middletown, one from Cobb and one from Hidden Valley Lake, she explained.

That district membership requirement was changed due to challenges getting a quorum in those early days because not enough people were attending, she said.

Diehl-Darms said she believed that if there were districts again – and they could be different than those previously outlined – people who cannot attend the meetings can take any concerns they have about community issues to their district representative.

“It's just a thought,” she said, adding that it was up to the pleasure of the group if they wanted to consider it.

Diehl-Darms has noted that MATH's borders follow those of the South Lake County Fire Protection District. Supervisor Jim Comstock, to whom MATH acts as an advisory body, suggested the logical way of delineating MATH's boundaries – in light of the new Cobb group forming – would be supervisorial districts.

MATH Vice Chair Claude Brown said he didn't think MATH should change its boundaries to exclude people from Cobb who want to attend.

During the discussion, several people said they felt MATH should hold off on making a decision until the Cobb advisory council gets off the ground. At that point, MATH can decide if it wants to adjust its boundaries.

“We don't want to be in competition,” said Comstock.

Dave Rosenthal suggested the different groups are like the subappellations working in the wine industry. “I don't think we need to work in conflict necessarily. I think it's a boost.”

MATH Chair Fletcher Thornton agreed, explaining he also wanted to wait before taking action.

Referring to MATH's development, Thornton said, “We went through a lot of growing pains and we kept two things in mind all the time.”

Those two things, he said, were maintaining credibility and relevance.

He said the group has to understand its job, which is to provide a platform for community members to express their opinions about community issues.

“That's our job. That's our only job,” he said.

Monica Rosenthal said the Cobb residents began wanting to form their own town hall in the wake of the Valley fire as part of addressing their own specific issues – including the need to update the Cobb Area Plan, last revised in 1989.

“They've been severely impacted by the fire. That's one of the reasons why they're starting their own,” Monica Rosenthal said of the new municipal advisory council.

Thornton said he wasn't willing to exclude the people from Cobb who have been attending MATH meetings for years.

“We've never excluded anybody, ever,” Thornton said, adding if the Cobb group wants to come and work together, MATH can consider bylaw modifications later. “We want to help them.”

Brown said they should be proud of the fact that people from other parts of the county have come to MATH to study how it operates in order to create their own groups.

Comstock said Supervisor Jim Steele came to him about patterning a new town hall for the Clearlake Oaks area after MATH.

Thornton said he wrote the bylaws for MATH by pulling a set of bylaws off the Internet for another Northern California area.

Ultimately, MATH members held off on making any decision on the matter. Diehl-Darms agreed to pull the matter and wait until the Cobb group had made more progress.

She added, “I do believe that we need to amend our bylaws at some point.”

In other business discussed at the June 9 meeting, the group got an update on an appeal hearing on a proposal to build a 9,100-square-foot Dollar General store at 20900 Highway 29.

Texas-based Cross Development, the firm proposing to build the store, went before the Lake County Planning Commission seeking approval of the project in April. The commission denied the request..

Cross Development appealed the decision to the Board of Supervisors, and the appeal initially had been set for the board's June 14 meeting, but has been rescheduled for 10 a.m. Tuesday, July 10.

Concerns were raised about the fact that Cross Development is offering to make changes to the project but most community members haven't been able to see them. Comstock suggested inviting the developer to MATH before the appeal is heard.

Thornton said he would invite Cross Development to the next MATH meeting to discuss their plan updates.

He said a company representative had told him they were willing to make changes to the plan so long as they were economically feasible, and exterior changes were not a big deal for them.

Email Elizabeth Larson at This email address is being protected from spambots. You need JavaScript enabled to view it. . Follow her on Twitter, @ERLarson, or Lake County News, @LakeCoNews.