Clearlake City Council votes to retain firm for fire lawsuit, approves police gym equipment
- Elizabeth Larson
- Posted On
CLEARLAKE, Calif. – The Clearlake City Council on Thursday voted to join litigation over the Sulphur fire, met the city’s newest police officer and approved the grant-funded purchase of gym equipment for the police department.
After the council convened in open session, City Attorney Ryan Jones reported on action taken in the closed session that preceded the beginning of the meeting.
Jones said the council voted unanimously to retain the services of law firm Baron and Budd related to the Sulphur fire litigation, an action which will be subject to entering into a written contract with the firm.
Earlier this year, the county of Lake also retained Baron and Budd for the Sulphur fire litigation, as Lake County News has reported.
At the start of the meeting Clearlake Police Chief Andrew White introduced to the council new police Officer Shane Audiss, who has been with the department for about two weeks.
White said Audiss graduated from high school in Santa Rosa in 2008, and later attended the police academy at Santa Rosa Junior College, graduating in 2017.
“It’s great to be here,” said Audiss, who added he’s enthusiastic about working for the city.
Audiss thanked Chief White and added he’s grateful for being welcomed into the community.
On Thursday’s agenda was consideration of a request from Casitas De Mendota LLC to be allowed to withdraw from its interest in the partnership of “O” Village Investors, related to the development of Olympic Village Apartments, a request the council ultimately decided to table in order to get more information and assurances from the other partners.
Assistant City Manager Alan Flora explained that in 2009 the Clearlake Redevelopment Agency entered into an agreement to provide a $700,000 loan to the partnership to develop 54 affordable housing units at Olympic Village.
He said it’s a 25-year loan term that’s supposed to start being repaid in 2023, 14 years after it was made.
“There’s sort of a complex arrangement with the partners that are involved in the structure of the loan but one of the partners, Casitas De Mendota, is requesting to be removed as one of the administrative general partners from Global Premier Development,” Flora said.
As part of the agreement signed in 2009, the city has to provide its consent to allow them to withdraw their partnership. Flora said no money was changing hands as part of this agreement.
Staff recommended consenting to the withdrawal and authorizing the mayor to sign it, Flora said.
During the city’s discussion with the law firm representing the partnership’s general partner, they informed the city that Fannie Mae, the primary owner on the development’s note, wants the city to sign a subordination agreement, Flora said.
That meant that the city would be required to change its deed of trust to a lien. Flora said that if it came down to some type of default, the city probably would not be ahead of Fannie Mae, adding that staff didn’t see how it’s in the city’s best interest to sign a subordination agreement that turns the deed into a lien against the property that may be more difficult to fulfil.
Flora said it was staff’s recommendation not to sign the the subordination agreement.
Councilman Russ Cremer asked if the city’s deed of trust is the first. Flora said the city is both a lender and a partner in the project. Other partners also have provided financing.
“That makes no sense whatsoever. If you’re in first position, you stay in first position,” said Cremer.
Councilmembers raised concerns about other partners potentially wanting to withdraw. Flora said that, at that point, the city didn’t have any reason to be concerned about it, and that any other withdrawals also would require council approval.
“I’m sorry, I don’t think this makes sense to me,” said Councilwoman Joyce Overton.
Mayor Bruno Sabatier pointed out that the other partners would still be required to repay the loan to the city, which Flora confirmed.
“All the other partners are agreeing to this so far,” said Flora, with Jones adding that Casitas De Mendota can’t ultimately be released from the partnership if the other partners also don’t approve it.
Overton said she wanted a legal document saying the other partners are still responsible for the loan and letters from remaining partners to ensure the city’s security.
Other council members noted similar concerns and the decision was made to table the item so staff could further research it and follow up with other partners.
However, the council did unanimously vote to deny the request to sign the subordination agreement to turn the city’s deed of trust into a lien.
In other business, the council approved a resolution approving the commitment of Community Development Block Grant program income funds totaling $200,000 and a $500,000 CDBG grant for Code Enforcement activities for the next two years, and possibly a third.
Jones and White also presented the first reading of amendments to the Clearlake Municipal Code adopting building code sections.
Jones said they went through areas of city code where there holes. Some of the updates give the city more code enforcement tools. He said they plan go go over the city code every few years to make ongoing updates.
White said the proposed changes were in response to a discussion of red-tagged homes about two months ago. “This is one piece of a larger legislative puzzle that we’re putting together to address all of these issues.”
The council also approved White’s request to purchase gym equipment for the police department thanks to a $37,543.13 grant from the Redbud Health Care District, which will cover the entire purchase.
He said the department doesn’t currently have an exercise facility, and the new equipment will benefit the employees as well as the city, as keeping officers in shape reduces injuries and stress and improves morale.
A former storage room in the department will house the equipment. It was noted during the discussion that police personnel helped renovate the space, which White said made the entire plan possible.
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