LAKE COUNTY — It was publicly revealed Tuesday that Lake County Community Action Agency (LCCAA) is delinquent on payment of federal payroll taxes in excess of $100,000 and is facing serious financial difficulties including possible eviction from the agency”s offices because of non-payment of rent.
LCCAA is “undergoing a restructuring following a significant downturn in government funding and similar decline in available funding from the private sector for key programs,” according to a press release issued Tuesday from LCCAA Board Chairman Tom Jordan.
The agency has furloughed employees and canceled programs.
Jordan said, “The funding deficits will force the closure of the community transitional shelter and a reduction in services provided through the New Beginnings treatment facility.”
The Record-Bee printed an article regarding the closure of the transitional living center (TLC) in Saturday”s newspaper.
Outreach director and administrator of the TLC house, Janet Thomson, said in that article that the house was old and inefficient and the overhead was too high.
Lars Crail, who manages the property for his mother, said on Tuesday, “They (LCCAA) have rented since July 2006 and their payments have been inconsistent for two years.” He said there was never an eviction notice sent because he was trying to work with them. “The program is a great service to the community. It”s a great location. We”re hoping it will work,” Crail said. He said the organization was several months behind on the rent and he had never been informed of any issues with utilities nor the efficiency of the building.
Crail said he received a voicemail from LCCAA Executive Director Georgina Lehne on Wednesday or Thursday of last week that TLC would be closing and that was the first he heard of it. Crail is currently working with Clearlake Mayor Joyce Overton, who contacted him promptly. “I have great respect for Joyce. She has been very forthcoming,” Crail said.
Two long-term tenants are currently renting at the location, Habitat for Humanity and Aloha Bay/Bright Lights Candle Company.
The release from Jordan stated, “A reduction in reimbursements from AODS contracts for patients have been curtailed due to federal budget cuts and those reimbursements were crucial to maintaining the center.”
LCCAA funds counseling programs at several Lake County schools and is being forced to consider reducing or restructuring those programs as well. The Clearlake Oaks Youth Center and the Clearlake Youth Center have been funded by LCCAA and those programs are both in jeopardy.
Executive Director of Hilltop Recovery Services, Lori Carter-Runyon was able to house one client from TLC in the new women”s house following the closure. “The employees and the county really stepped up and took care of the clients, the people in these programs,” Carter-Runyon said. “The counselors put the clients” needs before their own, not even knowing if they will have a job.”
Board Chairman Jordan said that “while we knew some funding cutbacks were inevitable, the extent of those cuts has gone beyond what we expected.”
Jordan stated, “Some of the funding cutbacks have affected key program areas that we felt were essential to our community and we did not expect those funding sources to end. Due to the severity of the current financial climate, a number of other public and private revenue sources such as themselves have had their revenues substantially reduced had to reduce their level of support. Their inability to continue to fund our programs in turn have exacerbated the situation to the point we are being forced to take drastic measures.”
Lake County Supervisor Jeff Smith, who sits on the LCCAA board, did not return phone calls regarding the canceled programs and furloughs.
Supervisor Rob Brown commended Supervisor Denise Rushing for catching problems related to LCCAA and bringing it to the Board of Supervisors attention.
Rushing declined the board”s appointment on the LCCAA board of directors effective immediately.
LCCAA was scheduled to provide a status update to the board of supervisors on Tuesday; however, the item, as well as another item regarding funding, were removed from Tuesday”s agenda.
Rushing declined the board”s appointment, which was conveyed in a letter from Lake County Administrative Officer Kelly Cox addressed to Lehne. The letter states: “Supervisor Denise Rushing has declined to serve on the LCCAA Board of Directors effective immediately, after having been recently informed that the LCCAA is delinquent on payment of federal payroll taxes in excess of $100,000 and is currently facing other severe financial difficulties and challenges including possible eviction from the agency”s current offices because of non-payment of rent. Obviously, there is concern that these issues, if left unresolved, will make it difficult or impossible for the agency to continue its operations.”
In his letter, Cox requested on behalf of the board, a status report by LCCAA, the agency”s current plans for recovering from its current challenges and whether the agency has the ability to assume additional contractual and service obligations at this time. The presentation along with a consideration of proposed amendment to the agreement between the county and LCCAA, New Beginnings Highland High School and Carl? High School for provision of alcohol and drug counseling in a total amount not exceed $200,000 was scheduled for Tuesday”s meeting; however, representatives of the agency were not present and the items were removed from the agenda.
Jordan stated “LCCAA board members are all community volunteers and they are working toward maintaining essential services and restructuring the agency. We ask for the public”s patience and cooperation as we re-tool this important organization and we will communicate our decisions to the community clearly and frequently and as we recover.”
Lehne did not return numerous phone calls made by the staff of the Lake County Record-Bee.
Denise Rockenstein contributed to this article.
