CLEARLAKE — The Clearlake City Council met, minus Councilman Curt Giambruno and took actions Thursday during its regular meeting.
Actions pertained to the city and redevelopment agency audits, participation in the Lake County Marketing Program and the exploration of creating a parking district to serve Lakeshore Drive.
The council began the regular meeting agenda with the presentation of a proclamation designating May as “Homeless Youth Awareness Month” in the city. The proclamation was accepted by Bill MacDougall, superintendent of the Konocti Unified School District.
The council voted 4-0 to accept the audit reports for the city and redevelopment agency for year ending June 30, 2010. The audit was prepared by Lance Soll and Lunghard, LLP (LSL). LSL partner Bryan Gruber, CPA, was present to deliver the audit reports to the council. While the audit is late, Gruber said Clearlake is not the only city in such a situation.
The firm provided the city with an “unqualified opinion,” which Gruber said was a positive and good thing. According to Interim City Administrator Steve Albright”s staff report, the auditors issued the following statement: “In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2010, and the respective changes in financial position thereof ? for the year then ended in conformity with accounting principles generally accepted in the United States of America.”
“They have noted ?no transactions entered into by the City for which there is a lack of authoritative guidance or consensus,” Albright stated.
The auditors” management letter makes observations of weaknesses and deficiencies in internal control, which need to be corrected by the city. The auditors identified material weaknesses including adjustments necessary to record prior year accrued interest and accounts payable. They also noted significant deficiencies, which the city should take corrective action on including improving cash and investment reconciliation; better tracking of accounts payables accruals; improving reconciliation of grants; and improving tracking for transfers and advances.
Reported differences auditors determined to be immaterial included understatement of property tax revenues; deviation from reporting required by GASB 31 for investment values; and cash variance.
Mayor Joyce Overton asked Financial Director Mike Vivrette if these deficiencies are being addressed. Vivrette said if the auditors deem the deficiencies as insignificant, it doesn”t warrant staff time to find the deficiencies. He said they could be something like a void check not being recorded.
The council decided 4-0 to take advantage of what time is left to get involved with the Lake County Marketing Program. The city has already missed the boat for inclusion in printed promotional items; however, the council thought it would be beneficial to jump on board now to take advantage of the program”s referral system for the upcoming tourist season.
“One of the benefits you get is referrals,” Albright said. “If you”re not participating, you don”t get the referrals.”
Vice Mayor Joey Luiz, who requested the item be brought before the council for consideration, said the program is consistent and of quality. “We need to keep up the best we can with the rest of the county,” he said.
Councilwoman Judy Thein said she also supports the city”s participation. “I know the benefits the city has reaped by participating in this program,” she said.
Ultimately, the council voted to contribute a total of $2,000 for the remaining two months of the program this year and discuss any future participating during next fiscal year budget talks.
The council also discussed, and provided staff direction, for further exploring the creation of a Lakeshore Drive Shared Parking District. While Councilmember Jeri Spittler recused herself from the discussion as a councilmember, she did exercise her First Amendment right to free speech as a member of the public. Spittler recused herself because she owns and operates a business on Lakeshore Drive.
The concept of the shared parking district means multiple users (businesses) sharing the same parking spaces. “It is usually done in urban downtowns, historic districts, or other densely populated areas where the small lot sizes do not allow off-street parking requirements to be met on a lot-by-lot basis,” Albright said. “It also facilitates better urban design and improved traffic movement by limiting the number of vehicular access points to major streets.”
“I don”t think any of us are going to disagree that this is something the city”s needed for a long time,” Overton said.
The idea was met with the support of the council as well as members of the public. In his administrator”s report, Albright said that the council has narrowed down applicants for the position of city administrator to four candidates and will move into the interviewing process. He also said it is likely that a special meeting will be scheduled for May 17 for the council”s consideration and public hearing of a proposed ordinance for the regulation of medical marijuana dispensaries in the city. In addition, Albright said the council will likely have an announcement at its next regular meeting concerning a settlement agreement for litigation related to the Sierra Club lawsuit against the city and KK Raphel Properties, LLC.
Contact Denise Rockenstein at drockenstein@clearlakeobserver.com or call her directly at 994-6444, ext. 14.
