CLEARLAKE — The Clearlake City Council discussed the future operation plans for the Hot Spot youth center during its Thursday, Feb. 14, regular meeting. The discussion concerned how to proceed with the youth services project.
Grant complications regarding the Hot Spot were discussed among the council. Inadequate documentation on the expenditure of grant monies has caused a need for careful consideration regarding how to proceed with the project.
Improvements at the Hot Spot have been supported by a $45,000 per capita grant from the California Parks and Recreation Department awarded in 2004. The city has received $34,878 of the total allocation; however, the state has found that $18,006 of money lacks adequate documentation on its use. The state has requested repayment of those undocumented grant funds.
“We have reviewed the files and cannot justify the $38,878 that has been paid to the city,” City Administrator Dale Neiman reported during the Jan. 24 meeting. “We were able to justify $20,872. There was inadequate documentation for $6,049 and no information on how $11,957 was spent. So, we have to repay the state $18,006 out of the General Fund. It is possible we may have to repay the state more money based on their audit of the records.”
Neiman was given authorization during the Jan. 24 meeting to pay the state back for the undocumented expenses from the city”s General Fund. With the repayment, there is $21,570 left in the grant as was reported by Neiman. He had further reported that once the state conducts its audit, the facility will be required to be maintained in an acceptable manner and operated for 10 years as a youth center. If the facility is not maintained adequately or operated as a youth center for a 10-year period, the city will be required to return the $20,872 that has been justified as well.
Decisions before the council on Thursday concerned authorizing staff to request the state complete for the youth center improvements to determine what expenses qualify for reimbursement before any decisions are made on how to use the remaining money. The motion passed on a 5-0 voice vote.
The second decision concerned authorization for staff to negotiate a lease for the youth center building that meets the state”s minimum hours of operation. The lease would expire after Oct. 8, 2014.
Councilmember Joyce Overton, who also serves on the board for the Lake County Youth Center, which operates under an umbrella of the Lake County Community Action Agency (LCCAA), informed the council that LCCAA is willing to enter into such a lease. The lease would include the requirements for youth services that are being demanded by the state in order to receive the remainder of the grant.
Councilmember Judy Thein voiced a concern regarding the condition of the building in relation to the city”s responsibility for maintaining it and whether or not there will be enough money left in the grant to complete the improvements. She said she would like to see the audit back before entering into a lease agreement in case the city cannot afford to fix the building.
Thein also questioned the consequences associated with terminating a lease should the selected agency be unable to fulfill the requirements set down by the state. Neiman informed the council that provisions are to be included in the lease agreement that would provide termination options for each party and that the city could then replace the agency with another to complete the 10-year requirement by the state. He added that the state has made it clear that it would like to see a lease in place to proceed with the project.
“We need to get in the lease what the state wants because if they come back and it”s not, then we”re in big trouble,” Neiman explained.
The council moved to authorize the negotiation of a lease, which will later be brought back before the council for approval.
Contact Denise Rockenstein at drockenstein@clearlakeobserver.com.
